Template-Type: ReDIF-Article 1.0
Author-Name: Theo Hitiris 
Author-X-Name-First: Theo 
Author-X-Name-Last: Hitiris 
Title: Health care expenditure and integration in the countries of the European Union 
Abstract:
  National health care differs between the member states of the European
 Union in the quality and quantity demanded and supplied, reflecting
 different economic structures and health care organization and delivery
 systems. Since health care expenditure depends primarily on the level of
 economic development and the structure of the population, only convergence
 in economic performance and the standards of living can lead to
 convergence of health expenditure standards. 
Journal: Applied Economics 
Pages: 1-6 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327335 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327335 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:1-6




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Turner 
Author-X-Name-First: Paul 
Author-X-Name-Last: Turner 
Title: The Phillips curve, parameter instability and the Lucas critique 
Abstract:
  Empirical estimation of Phillips curve relationships typically indicates
 the presence of parameter instability. This is argued to be due to the
 fact that the parameters of these equations are reduced form rather than
 structural parameters. Estimation of a Phillips curve model by methods
 which allow for time-varying parameters permits investigation of the
 nature and timing of the structural breaks which generate instability.
 This paper estimates such a model by the Kalman filter using quarterly
 data over the period 1972.4 to 1993.3. We find evidence of a gradual
 decline in the private sector's assessment of the steady-state inflation
 rate during the 1980s, but little evidence of the sort of dramatic regime
 shift predicted by some of the more extreme rational expectations models. 
Journal: Applied Economics 
Pages: 7-10 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327344 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327344 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:7-10




Template-Type: ReDIF-Article 1.0
Author-Name: Abid Burki 
Author-X-Name-First: Abid 
Author-X-Name-Last: Burki 
Author-Name: Mushtaq Khan 
Author-X-Name-First: Mushtaq 
Author-X-Name-Last: Khan 
Author-Name: Bernt Bratsberg 
Author-X-Name-First: Bernt 
Author-X-Name-Last: Bratsberg 
Title: Parametric tests of allocative efficiency in the manufacturing sectors of India and Pakistan 
Abstract:
  This paper estimates allocative inefficiency in the manufacturing sectors
 of India and Pakistan. Based on an extension of the translog profit
 function approach, we propose a new method to the estimation of allocative
 inefficiency in two countries (or groups). The model is estimated using
 pooled annual data from the large scale manufacturing sectors of India and
 Pakistan over the period 1959-87. We find evidence of allocative
 inefficiencies in both countries. Specifically, results reveal that
 manufacturing firms in the two countries over-utilize capital and raw
 materials relative to labour and energy. The magnitude of over-utilization
 of capital is more severe in Pakistan than in India. We argue that these
 findings are hardly surprising given the structure of factor markets and
 past government policies in the two countries. 
Journal: Applied Economics 
Pages: 11-22 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:11-22




Template-Type: ReDIF-Article 1.0
Author-Name: Francis Cheung 
Author-X-Name-First: Francis 
Author-X-Name-Last: Cheung 
Author-Name: Maw Lin Lee 
Author-X-Name-First: Maw Lin 
Author-X-Name-Last: Lee 
Author-Name: Yi-Chen Wu 
Author-X-Name-First: Yi-Chen 
Author-X-Name-Last: Wu 
Title: Endogenous export prices and the Taiwan-US trade imbalance 
Abstract:
  To explain the perplexing issue of why Taiwan's trade imbalance with the
 US has persisted despite the depreciation of the dollar, we estimate a
 four equation model to determine the direct pass-through (DPT) and
 indirect cost adjustment (ICA) effects of exchange rate changes on
 Taiwan's export prices. The ICA effect is important in the case of Taiwan
 because it imports mostly intermediate goods for the production of
 manufactured goods that are exported. Our findings support the view that
 DPT and ICA effects reduce the effectiveness of exchange rate as a
 mechanism for international trade adjustment. 
Journal: Applied Economics 
Pages: 23-31 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327362 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327362 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:23-31




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Lindh 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Lindh 
Author-Name: Tomas Lindstrom 
Author-X-Name-First: Tomas 
Author-X-Name-Last: Lindstrom 
Title: Structural breaks in financial share, savings and growth in OECD: 1960-92 
Abstract:
  Indivisibilities in extending financial markets imply level shifts in the
 financial cost share. This could induce growth and savings slumps. We
 search for structural breaks in the financial sector share of seven OECD
 countries and relate these to changes in GDP growth and the savings share.
 The event patterns of these macro series are classified and weighted by
 typicities. Financial structural breaks are associated with decreased
 savings but ambiguous with respect to growth. We conjecture that most of
 the period is a successive transition to increasing financial shares
 accompanied by lower savings and more sluggish growth. 
Journal: Applied Economics 
Pages: 33-41 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327371 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327371 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:33-41




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Alyousha 
Author-X-Name-First: Ahmed 
Author-X-Name-Last: Alyousha 
Title: Investigating Bahrain business cycles 
Abstract:
  The motive of this paper is to study and hence establish stylized facts
 for the small oil producing economy of Bahrain using time series
 techniques. This is done by estimating persistence in GDP and its two main
 components (oil and non-oil GDP) and by testing for the macroeconomic
 variables driving the non-oil business cycles. Applying these techniques
 to Bahrain data show: (i) GDP, non-oil GDP and oil GDP have little
 persistence, so that an innovation at the level of these series will have
 only transitory effects; and (ii) government expenditure is the only macro
 variable that Grangercauses non-oil business cycles. 
Journal: Applied Economics 
Pages: 43-50 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327380 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327380 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:43-50




Template-Type: ReDIF-Article 1.0
Author-Name: Vijay Bhawnani 
Author-X-Name-First: Vijay 
Author-X-Name-Last: Bhawnani 
Author-Name: K. Rao Kadiyala 
Author-X-Name-First: K. Rao 
Author-X-Name-Last: Kadiyala 
Title: Forecasting foreign exchange rates in developing economies 
Abstract:
  We investigate the ability of a variety of exchange rate models to
 forecast parallel exchange rates for developing economies. In contrast to
 earlier studies, which use actual values of the exogenous variables, we
 employ time series forecasts of the exogenous variables. An error
 correction version of a monetary model proposed by us, that incorporates
 the dynamics of both short-run and long-run adjustment processes,
 outperforms all other models that have been suggested earlier. 
Journal: Applied Economics 
Pages: 51-62 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327399 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327399 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:51-62




Template-Type: ReDIF-Article 1.0
Author-Name: S. M. Ahmed 
Author-X-Name-First: S. M. 
Author-X-Name-Last: Ahmed 
Author-Name: M. I. Ansari 
Author-X-Name-First: M. I. 
Author-X-Name-Last: Ansari 
Title: Modelling the efficiency of the Canadian foreign exchange market: a bivariate transfer function analysis 
Abstract:
  The efficient market hypothesis for the Canadian foreign exchange market
 is tested using monthly data on spot and forward exchange rates from
 January 1973 to October 1995. Unlike most previous studies, we have
 estimated a transfer function model which combines the results of the
 univariate time series models with those of the regression model.
 Following the convention, equations derived from the market efficiency
 models have been used in both level and change specifications. Like many
 previous studies, the results from the transfer function model have failed
 to provide evidence in support of the efficient market hypothesis. These
 findings suggest that significant arbitraging opportunities existed in the
 Canadian foreign during the period under study. 
Journal: Applied Economics 
Pages: 63-70 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327407 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327407 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:63-70




Template-Type: ReDIF-Article 1.0
Author-Name: Kare Johansen 
Author-X-Name-First: Kare 
Author-X-Name-Last: Johansen 
Title: The wage curve: convexity, kinks and composition effects 
Abstract:
  A detailed analysis is provided of the shape of the wage curve using
 annual time series for Norwegian manufacturing. The main results are
 summarized as follows. Unemployment affects wages significantly, and we
 provide evidence in favour of a monotonically decreasing but highly
 non-linear wage curve. The long-term unemployed exert less of a wage
 dampening effect than do recently laid off workers, and real wage
 responsiveness to unemployment seems also to be stronger with higher
 inflation. 
Journal: Applied Economics 
Pages: 71-78 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327416 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327416 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:71-78




Template-Type: ReDIF-Article 1.0
Author-Name: Cam Donaldson 
Author-X-Name-First: Cam 
Author-X-Name-Last: Donaldson 
Author-Name: Ruth Thomas 
Author-X-Name-First: Ruth 
Author-X-Name-Last: Thomas 
Author-Name: David Torgerson 
Author-X-Name-First: David 
Author-X-Name-Last: Torgerson 
Title: Validity of open-ended and payment scale approaches to eliciting willingness to pay 
Abstract:
  The open-ended and payment scale approaches to eliciting willingness to
 pay (WTP) valuations are compared. Use of the payment scale led to a
 higher response rate, a higher rate of completion of the WTP question,
 higher mean and median WTP values, a stronger association between WTP and
 ability to pay and a higher R2 in regression analysis of WTP on several
 independent variables. Taking these results in combination, it can be
 inferred that the payment scale technique leads to more valid WTP values
 than use of the open-ended approach. 
Journal: Applied Economics 
Pages: 79-84 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327425 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327425 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:79-84




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Bates 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Bates 
Title: Measuring predetermined socioeconomic 'inputs' when assessing the efficiency of educational outputs 
Abstract:
  Data envelopment analysis (a mathematical programming technique) has
 often been applied to measuring the efficiency with which outputs are
 produced. The technique derives efficient combinations of outputs for
 given inputs: constant returns to size may be assumed or one may choose to
 examine whether decreasing or increasing returns hold true. The technique
 was originally developed with cost data as the inputs, but many of the
 applications in education have been required to concern themselves with
 inputs of a social nature, where the inputs are frequently 'categorized'.
 This paper develops a method for measuring these categorized inputs in a
 more satisfactory way. A DEA analysis is undertaken of results for the
 Local Education Authorities of England in the early 1980s, and is followed
 by a stochastic frontier analysis. 
Journal: Applied Economics 
Pages: 85-93 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327434 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327434 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:85-93




Template-Type: ReDIF-Article 1.0
Author-Name: Tridoyo Kusumastanto 
Author-X-Name-First: Tridoyo 
Author-X-Name-Last: Kusumastanto 
Author-Name: Curtis Jolly 
Author-X-Name-First: Curtis 
Author-X-Name-Last: Jolly 
Title: Demand analysis for fish in Indonesia 
Abstract:
  The purpose of this study was to determine an aggregate demand function
 and the factors influencing the demand for fish in Indonesia during the
 period 1967-88. Using a Box-Cox transformation methodology, the double-log
 model was found to be appropriate for explaining the demand for fish.
 Factors influencing demand were own-price, price of eggs, and per capita
 income. Results of static analysis showed an own-price of- 0.102, a
 cross-price elasticity for eggs of 0.271, and an income elasticity of
 0.506. A dynamic analysis using a Houthakker-Taylor model indicated that
 fish consumption depended on psychological food-buying habits of
 consumers. Short-run and long-run elasticities, resulting from a partial
 adjustment model, implied that per capita consumption of fish is growing
 at a slow rate. 
Journal: Applied Economics 
Pages: 95-100 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327443 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327443 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:95-100




Template-Type: ReDIF-Article 1.0
Author-Name: James Giordano 
Author-X-Name-First: James 
Author-X-Name-Last: Giordano 
Title: Returns to scale and market concentration among the largest survivors of deregulation in the US trucking industry 
Abstract:
  Application of the survivor technique to the 100 largest
 less-than-truckload carriers of general commodity freight in the US
 interstate trucking industry produces estimates of the ranges of
 increasing, constant, and decreasing returns to scale. From 1981 to 1993,
 the first thirteen years of deregulation, nearly one-quarter of total
 group ton-miles hauled is found to have moved into the more efficient size
 range of constant returns to scale. A gain in long-run technical
 efficiency is thereby attributed to the Motor Carrier Act of 1980.
 Moreover, the survivorship data allow estimates of intragroup market
 concentration for each of the same thirteen post-deregulation years.
 Concentration purely within this group appears to have remained fairly
 moderate and stable since 1981, an unsurprising finding given the modest
 minimum efficient size estimated at about 2 million ton-miles hauled
 annually. The moderate and stable concentration among the 100 largest is
 not necessarily incompatible with other research which finds growing
 overall industry concentration since MCA80. It does, however, imply a lack
 of market dominance and latent oligopoly. 
Journal: Applied Economics 
Pages: 101-110 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327452 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327452 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:101-110




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Apergis 
Author-Name: Sophia Eleftheriou 
Author-X-Name-First: Sophia 
Author-X-Name-Last: Eleftheriou 
Title: The efficient hypothesis and deregulation: the Greek case 
Abstract:
  The impact is examined of the 1988 monetary deregulation in Greece on the
 efficiency of the foreign exchange market. A 'news' model reveals that the
 deregulation of the monetary system contributed to the presence of an
 efficient foreign exchange market. 
Journal: Applied Economics 
Pages: 111-117 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327461 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327461 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:111-117




Template-Type: ReDIF-Article 1.0
Author-Name: A. D. Owen 
Author-X-Name-First: A. D. 
Author-X-Name-Last: Owen 
Author-Name: K. Chowdhury 
Author-X-Name-First: K. 
Author-X-Name-Last: Chowdhury 
Author-Name: J. R. R. Garrido 
Author-X-Name-First: J. R. R. 
Author-X-Name-Last: Garrido 
Title: Price interrelationships in the vegetable and tropical oils market 
Abstract:
  The relationship between vegetable and tropical oils prices is
 investigated utilizing a vector autoregressive approach. Despite the
 apparent similarities between these oil prices in terms of their general
 pattern of movement over time, the relationships were not found to be
 strong enough to label them as 'cointegrated series'. Further analysis
 indicates that substitution relationships appear to drive price movements
 in the short run, while market-based structural factors for each of the
 oils are important elements in the price formation process in the long
 run. 
Journal: Applied Economics 
Pages: 119-124 
Issue: 1 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327470 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327470 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:119-124




Template-Type: ReDIF-Article 1.0
Author-Name: John Sawkins 
Author-X-Name-First: John 
Author-X-Name-Last: Sawkins 
Author-Name: Paul Seaman 
Author-X-Name-First: Paul 
Author-X-Name-Last: Seaman 
Author-Name: Hector Williams 
Author-X-Name-First: Hector 
Author-X-Name-Last: Williams 
Title: Church attendance in Great Britain: An ordered logit approach 
Abstract:
  The church attendance decision of individual economic agents is analysed
 within a Becker-style allocation of time framework. Using an ordered logit
 model with data derived from the British Household Panel Study (BHPS)
 separate attendance equations are estimated for males and females. The
 empirical results, in line with previous North American studies, suggest
 that labour income variables do account for some of the variation in
 attendance. In addition, attendance is found to be correlated with factors
 such as denominational affiliation, educational attainment and intensity
 of belief. 
Journal: Applied Economics 
Pages: 125-134 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327209 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327209 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:125-134




Template-Type: ReDIF-Article 1.0
Author-Name: Marcello D'Amato 
Author-X-Name-First: Marcello 
Author-X-Name-Last: D'Amato 
Author-Name: Barbara Pistoresi 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Pistoresi 
Title: Co-movements of OECD growth cycles 
Abstract:
  The study is of short-run and long-run co-movements and convergence
 across 21 OECD real per capita outputs on a sample period spanning 1960 to
 1992 using dynamic principal components analysis and coherence analysis.
 We reject the hypothesis of convergence, but find evidence for long-run
 growth cycles closely related across countries. In particular, the G5
 group exhibits the highest degree of economic integration in the long run.
 The group of the original members of the Community also exhibits linkages
 at high and medium frequencies and represents the most homogeneous area in
 Europe in terms of output dynamics both in the long and short run. 
Journal: Applied Economics 
Pages: 135-144 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327218 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327218 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:135-144




Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsen 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Carlsen 
Title: Counterfiscal policies and partisan politics: evidence from industrialized countries 
Abstract:
  According to partisan theories of macroeconomic policy, left-wing parties
 are more concerned with unemployment while right-wing parties tend to
 weigh the costs of inflation higher. An implication of partisan theories
 is that partisan policy differences should depend on the state of the
 economy, with left-wing governments conducting relatively more expansive
 policies during recessions. We test whether left-wing governments are more
 favourably inclined towards countercyclical fiscal policies than their
 right-wing counterparts using a panel data set of 18 OECD countries from
 1980 to 1992. The results are supportive of partisan theories. The
 structural deficit is significantly higher under left-wing governments
 when unemployment is high or rising while the ideology of the government
 party (parties) has no significant impact on the structural deficit when
 unemployment is low or falling. 
Journal: Applied Economics 
Pages: 145-151 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327227 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327227 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:145-151




Template-Type: ReDIF-Article 1.0
Author-Name: Gregory Amacher 
Author-X-Name-First: Gregory 
Author-X-Name-Last: Amacher 
Author-Name: Peter Feather 
Author-X-Name-First: Peter 
Author-X-Name-Last: Feather 
Title: Testing producer perceptions of jointly beneficial best management practices for improved water quality 
Abstract:
  This paper examines producer perceptions of jointly beneficial
 relationships among best management practices for improved water quality.
 Identifying producer tendencies to bundle these types of practices may
 increase adoption and lower the costs of voluntary adoption programmes,
 particularly those relying on dissemination of information. Unlike
 previous studies, perceived changes in environmental quality, as well as
 perceived changes in profits, are used to define jointly beneficial
 inputs. The econometric model used in the analysis demonstrates that two
 of the three management practices considered are perceived to be jointly
 beneficial. 
Journal: Applied Economics 
Pages: 153-159 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327236 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327236 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:153-159




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Plane 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Plane 
Title: Privatization and economic growth: an empirical investigation from a sample of developing market economies 
Abstract:
  This paper explores the economic determinants of privatization programmes
 and the macroeconomic impact of this institutional reform on the growth
 rate of the GDP. A sample of thirty five developing market economies is
 considered over the 1988-92 period. Probit and Tobit models are used to
 identify the determinants of successful privatization programmes. Then
 regressions are run where probabilities (Probit) and expected values
 (Tobit) are successively included as additional regressors beside the
 potential influence of other economic policy variables. A significant
 positive effect is highlighted, giving evidence of the importance of
 divestiture. The economic effect is found to be stronger when this
 institutional reform took place in industry or infrastructure. 
Journal: Applied Economics 
Pages: 161-178 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327245 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327245 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:161-178




Template-Type: ReDIF-Article 1.0
Author-Name: M. Landesmann 
Author-X-Name-First: M. 
Author-X-Name-Last: Landesmann 
Author-Name: M. Pfaffermayr 
Author-X-Name-First: M. 
Author-X-Name-Last: Pfaffermayr 
Title: Technological competition and trade performance 
Abstract:
  This paper estimates a demand system for OECD exports differentiated by
 country of origin for two ISIC industries (non-electrical machinery,
 electrical machinery) and for total manufacturing exports. It develops a
 generalized form of the AIDS demand system in which research and
 development (R&D) effort enters in a number of ways to affect a particular
 supplier's competitiveness: R&D activity relative to competitors affects,
 on the one hand, relative cost competitiveness and, on the other hand, the
 producer's position in the quality spectrum of products offered on
 international markets. One of the interesting insights gained from the
 study is that 'effectiveness' of R&D effort can differ much across
 different economies. It is conjectured that a country's position in an
 international catching-up process may be partly responsible for such
 differences as well as labour market dynamics which link increased labour
 costs to cost- and quality-improvements. 
Journal: Applied Economics 
Pages: 179-196 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327254 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327254 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:179-196




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: What differentiates industrial business cycles? A cross-country investigation 
Abstract:
  Theoretical explanations appear in sharp contrast concerning the
 determinants of demand-driven industrial business cycles. Aggregate
 factors are likely to differentiate cyclical fluctuations for a given
 industry across countries. Industry-specific factors are likely to
 differentiate cyclical fluctuations across industries of a given economy.
 The differences are evaluated using data for industries producing private
 domestic output across a group of major industrial countries. Aggregate
 factors dominate industryspecific factors in explaining industrial
 cyclical fluctuations in response to aggregate demand shifts. Consistent
 with the various explanations, higher variability of aggregate demand
 moderates the response of industrial output to aggregate demand shifts
 across countries. Contrary to the implications of the new classical
 imperfect information model, cyclical fluctuations in industrial output
 appear also smaller in response to higher trend price inflation across
 countries. Business cycles appear, therefore, to be highly correlated
 across industries within countries. 
Journal: Applied Economics 
Pages: 197-212 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327263 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327263 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:197-212




Template-Type: ReDIF-Article 1.0
Author-Name: Subrata Ghatak 
Author-X-Name-First: Subrata 
Author-X-Name-Last: Ghatak 
Author-Name: Chris Milner 
Author-X-Name-First: Chris 
Author-X-Name-Last: Milner 
Author-Name: Utku Utkulu 
Author-X-Name-First: Utku 
Author-X-Name-Last: Utkulu 
Title: Exports, export composition and growth : cointegration and causality evidence for Malaysia 
Abstract:
  This paper comprehensively tests the export-led growth (ELG) hypothesis
 for Malaysia for the period 1955 - 90, using cointegration and causality
 testing based on Hsiao's synthesis of the Granger test and Akaike's
 minimum final prediction error criterion. The results provide support for
 the ELG hypothesis; aggregate exports Granger-cause real GDP and
 non-export GDP. This relationship is found to be driven by manufactured
 exports rather than by traditional exports. 
Journal: Applied Economics 
Pages: 213-223 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327272 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327272 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:213-223




Template-Type: ReDIF-Article 1.0
Author-Name: Oral Williams 
Author-X-Name-First: Oral 
Author-X-Name-Last: Williams 
Author-Name: David Bessler 
Author-X-Name-First: David 
Author-X-Name-Last: Bessler 
Title: Cointegration: implications for the market efficiencies of the high fructose corn syrup and refined sugar markets 
Abstract:
  The dynamic relationship between the prices of refined sugar and high
 fructose corn syrup is investigated using cointegration econometrics. The
 analysis is based on observational data, and although results indicate
 cointegration between 1984 and 1991 for the most part, alternative
 explanations for empirical regularities may exist and should be the
 subject of future research. 
Journal: Applied Economics 
Pages: 225-232 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327281 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327281 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:225-232




Template-Type: ReDIF-Article 1.0
Author-Name: W. Robert 
Author-X-Name-First: W. 
Author-X-Name-Last: Robert 
Author-Name: J. Alexander 
Author-X-Name-First: J. 
Author-X-Name-Last: Alexander 
Title: Inflation and economic growth: evidence from a growth equation 
Abstract:
  There is little existing empirical evidence on the relationship between
 inflation and growth, and much of what evidence there is fails to control
 appropriately for growth in real inputs. The present work uses a small
 sample of OECD countries for which capital stock and labour force data are
 available to investigate, in a pooled time series and cross-section
 fashion, the relationship between inflation and growth. Strong evidence is
 found contrary to the maintained hypothesis that there should be no
 association between inflation and real growth. The weight of evidence is
 that, having appropriately controlled for capital and labour inputs,
 inflation and its first difference are significantly negatively related to
 economic growth. 
Journal: Applied Economics 
Pages: 233-238 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327290 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327290 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:233-238




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Dickie 
Author-X-Name-First: Mark 
Author-X-Name-Last: Dickie 
Author-Name: Charles Delorme 
Author-X-Name-First: Charles 
Author-X-Name-Last: Delorme 
Author-Name: Jeffrey Humphreys 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Humphreys 
Title: Hedonic prices, goods-specific effects and functional form: inferences from cross-section time series data 
Abstract:
  Tests for two key elements of the hedonic model of price determination
 for differentiated goods are proposed when cross-sectional, time series
 data are available. First, the hedonic hypothesis, that price is
 determined by sellers' and buyers' valuations of characteristics bundled
 in a good, is tested against the alternative that consumers demand
 specific goods. The sensitivity of the outcome of the test to unmeasured
 characteristics, serial correlation or heteroscedasticity, and
 misspecification of functional form is assessed. Second, a novel approach
 to testing functional form illustrates limitations of testing hedonic
 specifications only against alternatives nested in the Box-Cox functional
 form. 
Journal: Applied Economics 
Pages: 239-249 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327308 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327308 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:239-249




Template-Type: ReDIF-Article 1.0
Author-Name: Otto Swank 
Author-X-Name-First: Otto 
Author-X-Name-Last: Swank 
Title: Some evidence on policy makers' motives, macroeconomic performance and output-inflation trade-offs 
Abstract:
  This paper presents the results of an empirical study of the relationship
 between macroeconomic performance and policy makers' preferences for real
 output growth and inflation based on quarterly data from 16 countries. The
 empirical results indicate that a lower priority to inflation and a higher
 real output growth target lead to higher inflation and a less favourable
 real output-inflation trade-off, without affecting real output growth. 
Journal: Applied Economics 
Pages: 251-258 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327317 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327317 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:251-258




Template-Type: ReDIF-Article 1.0
Author-Name: Bharati Basu 
Author-X-Name-First: Bharati 
Author-X-Name-Last: Basu 
Title: Advanced consideration of migration and the choice of destination: a joint decision 
Abstract:
  This paper fills an important gap in the migration literature by
 examining the interrelation between advanced consideration of migration
 and other migration decisions such as the choice of destination. It is
 shown that advanced consideration of migration via its interaction with
 some personal and locational factors can affect the destination choice and
 the potential destination characteristics, on the other hand, can trigger
 advanced considerations of migration. Furthermore, the results show that
 incorporation of advanced consideration of migration helps explain the
 anomalies observed in the literature (e.g., it offsets the negative impact
 of a high unemployment rate in a region so that migrants would move to a
 high unemployment area if they can plan ahead and make an effective job
 search). 
Journal: Applied Economics 
Pages: 259-268 
Issue: 2 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327326 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327326 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:259-268




Template-Type: ReDIF-Article 1.0
Author-Name: K. P. Kalirajan 
Author-X-Name-First: K. P. 
Author-X-Name-Last: Kalirajan 
Author-Name: Shiji Zhao 
Author-X-Name-First: Shiji 
Author-X-Name-Last: Zhao 
Title: Did the technical efficiency of state enterprises improve with the same speed in all provinces in China? 
Abstract:
  The objectives of this study are to examine whether technical efficiency
 of China's state enterprises improved over time due to the impact of
 economic reforms and to examine whether the response rates varied
 significantly across provinces. The results carry strong policy
 implications for future reforms. The empirical results show that technical
 efficiency improved significantly due to economic reforms from 1986 to
 1989. Shanghai appears to have responded more quickly and consistently to
 economic reforms than other provinces over the period. 
Journal: Applied Economics 
Pages: 269-277 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327047 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:269-277




Template-Type: ReDIF-Article 1.0
Author-Name: Craig Gallet 
Author-X-Name-First: Craig 
Author-X-Name-Last: Gallet 
Title: Cyclical fluctuations and coordination in the US steel industry 
Abstract:
  The model developed uses a measure of the discrepancy between price and
 marginal cost to estimate the effects of domestic demand fluctuations on
 the degree of oligopoly coordination in the US steel industry. Due to the
 importance of imports, however, domestic demand fluctuations occur
 whenever market demand and/or import supply shift. Consistent with several
 recent game-theoretic models, our results show that coordination among US
 steel producers tends to be weakest when market demand is high and import
 supply is low. 
Journal: Applied Economics 
Pages: 279-285 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327056 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327056 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:279-285




Template-Type: ReDIF-Article 1.0
Author-Name: Barton Hughes Hamilton 
Author-X-Name-First: Barton Hughes 
Author-X-Name-Last: Hamilton 
Title: Racial discrimination and professional basketball salaries in the 1990s 
Abstract:
  Racial differences in professional basketball player salaries are
 examined to determine whether the 20% premium paid to whites in the
 mid-1980s has persisted into the 1990s. OLS and tobit regressions indicate
 no difference between white and black salaries, controlling for player and
 team characteristics for the 1994 - 95 season. However, censored quantile
 regressions show substantial racial differences at certain points in the
 salary distribution. Whites earn less than blacks at the lower end of the
 distribution, although the difference is not statistically significant,
 and varies with minutes played. In contrast, whites receive a significant
 premium (18%) at the upper end of the salary distribution. These findings
 are consistent with a form of consumer discrimination in which sports fans
 prefer to see white star players, all else equal. 
Journal: Applied Economics 
Pages: 287-296 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327065 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327065 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:287-296




Template-Type: ReDIF-Article 1.0
Author-Name: Aziz Boussofiane 
Author-X-Name-First: Aziz 
Author-X-Name-Last: Boussofiane 
Author-Name: Stephen Martin 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Martin 
Author-Name: David Parker 
Author-X-Name-First: David 
Author-X-Name-Last: Parker 
Title: The impact on technical efficiency of the UK privatization programme 
Abstract:
  The level of technical efficiency in nine organizations privatized in the
 UK in the 1980s is assessed. Technical efficiency is measured for a number
 of years before and after privatization using data envelopment analysis.
 This non-parametric method allows efficiency to be measured without having
 to specify either the form of the production function or the weights for
 the different inputs and outputs used. Nevertheless, inputs and outputs
 have to be specified and some assumption has to be made about production
 conditions. Consequently, three models are estimated: the first assumes
 constant returns to scale; the second allows for variable returns; and the
 third adds environmental variables for technological change and the
 business cycle to the input/output set. The nine organizations studied
 yield mixed results. In some cases there is clear evidence of an
 improvement in technical efficiency; in others there is no discernible
 impact of ownership on performance. 
Journal: Applied Economics 
Pages: 297-310 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327074 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327074 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:297-310




Template-Type: ReDIF-Article 1.0
Author-Name: Sophia Dimelis 
Author-X-Name-First: Sophia 
Author-X-Name-Last: Dimelis 
Title: Cyclical and causal relations between real wages and employment in the EU 
Abstract:
  This paper analyses and compares the joint behaviour of real wages and
 employment over the business cycle in the European Union (EU) economies
 using both annual and quarterly data since 1960. Further investigation of
 the cointegrating properties and the existence of causal effects in the
 real wage-employment relation is undertaken by employing appropriate VAR
 models. The evidence suggests weak procyclical or acyclic behaviour of
 real wages relative to cyclical employment in the quarterly data and
 stronger procyclicality in the annual data, thus confirming the
 Dunlop-Tarshis result for the majority of the EU economies. With a few
 exceptions no cointegrating relations were detected, while the
 Granger-causality tests suggest either weak or lack of unidirectional
 causality. Finally, the sensitivity analysis showed that the filtering
 method has not much influence on the results, but the choice of deflator
 may overturn them in certain cases. 
Journal: Applied Economics 
Pages: 311-324 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327083 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:311-324




Template-Type: ReDIF-Article 1.0
Author-Name: Weiren Wang 
Author-X-Name-First: Weiren 
Author-X-Name-Last: Wang 
Title: Semi-parametric estimation of the effect of health on labour force participation of married women 
Abstract:
  This paper uses the semi-parametric method for binary choice models
 developed by Wang and Zhou (1995) to estimate the effect of health on the
 labour force participation of married women using data from the Panel
 Study of Income Dynamics (1989 interviewing year). The semi-parametric
 method is particularly useful if empirical studies involve many
 explanatory variables and large sample sizes. The estimation results show
 that the health condition is a good predictor of participation. The
 results also demonstrate that the easy-to-compute semi-parametric method
 is practical for empirical studies. Furthermore, the empirical results
 suggest that both logit and probit estimators may underestimate the effect
 of wives' health conditions on their labour force participation. 
Journal: Applied Economics 
Pages: 325-329 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327092 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327092 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:325-329




Template-Type: ReDIF-Article 1.0
Author-Name: Isabelle Piot-Lepetit 
Author-X-Name-First: Isabelle 
Author-X-Name-Last: Piot-Lepetit 
Author-Name: Dominique Vermersch 
Author-X-Name-First: Dominique 
Author-X-Name-Last: Vermersch 
Author-Name: Robert Weaver 
Author-X-Name-First: Robert 
Author-X-Name-Last: Weaver 
Title: Agriculture's environmental externalities: DEA evidence for French agriculture 
Abstract:
  The existence of persistent technical inefficiency offers the opportunity
 for a 'free lunch' not typically implied by the neoclassical theory of the
 firm. When external effects are related to the use of particular inputs,
 reduction of persistent technically inefficient levels of input use
 represents a means of reducing external impacts. An important example is
 found in agriculture where substantial environmental impacts are generated
 by particular inputs. Within this context, this paper considers the
 usefulness of data envelopment analysis (DEA) for estimation of potential
 input reductions and assessment of potential reductions of environmental
 impacts of agricultural inputs. An application for French cereal
 production provides estimates that indicate that substantial potential
 exists for reduction of input use and environmental impacts. 
Journal: Applied Economics 
Pages: 331-338 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327100 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327100 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:331-338




Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Granderson 
Author-X-Name-First: Gerald 
Author-X-Name-Last: Granderson 
Title: Parametric analysis of cost inefficiency and the decomposition of productivity growth for regulated firms 
Abstract:
  This paper examines the contributions of technical change, scale
 economies, regulation, and efficiency on productivity growth in the
 interstate natural gas pipeline industry. Following Bauer (1990)
 productivity growth for firms subject to regulation is decomposed into
 technical change, scale economies, regulation, and efficiency components.
 The data sample consists of 20 pipeline companies and covers the period
 1977 to 1987. Results indicate that scale economies, cost inefficiency,
 and regulation on average accounted for 64%, 16%, and 4% of productivity
 growth respectively. Cost efficiency declined over the sample period, most
 of which can be attributed to technical inefficiency. 
Journal: Applied Economics 
Pages: 339-348 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327119 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327119 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:339-348




Template-Type: ReDIF-Article 1.0
Author-Name: Jos Van Ommeren 
Author-X-Name-First: Jos 
Author-X-Name-Last: Van Ommeren 
Author-Name: Giovanni Russo 
Author-X-Name-First: Giovanni 
Author-X-Name-Last: Russo 
Title: Are vacancies difficult to fill? an empirical investigation of the Dutch labour market 
Abstract:
  The search behaviour of employers is focused on by developing a model to
 analyse employers' recruitment behaviour taking into account job seekers'
 search process. In addition, the causes of anticipated difficulties on
 firms' recruitment behaviour that may slow down the process of filling
 vacancies is investigated empirically. To do so, a survey is employed
 which contains information on the two main problems encountered by Dutch
 employers during recruitment: namely, an insufficient number of applicants
 and too many rejections of job offers. High educational and experience
 requirements are found to cause a low rate of response to the vacancy
 posted; offers of permanent positions tend to be rejected by job seekers
 due to disagreements on the level of works offered. Further, the condition
 of the supply side of the labour market strongly influences employers'
 recruitment behaviour, as employers increase their search intensity
 whenever problems are anticipated. 
Journal: Applied Economics 
Pages: 349-357 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327128 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327128 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:349-357




Template-Type: ReDIF-Article 1.0
Author-Name: Kon Lai 
Author-X-Name-First: Kon 
Author-X-Name-Last: Lai 
Title: Is the real interest rate unstable? Some new evidence 
Abstract:
  Prior studies typically report that real Treasury bill returns have a
 unit root. The unit-root findings are not consistent with the long-run
 Fisher effect and consumptionbased asset pricing models. This study
 examines a data set of ex ante real returns on US Treasury bills and
 commercial papers. The statistical analysis employs a new modified
 Dickey-Fuller test, whc has better power than standard unit-root tests. In
 contrast to previous findings, strong evidence of stationarity is found
 for all the real return series under examination. Implications of the
 results are discussed. 
Journal: Applied Economics 
Pages: 359-364 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327137 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327137 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:359-364




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Sumner 
Author-X-Name-First: Michael 
Author-X-Name-Last: Sumner 
Title: More on output expectations in manufacturing 
Abstract:
  Two misspecifications in a recent study of CBI survey data are corrected;
 and the relationship between firms' expectations of output change and
 their subsequent perception of the same change ex post, and the utility of
 output expectations in forecasting, are examined. 
Journal: Applied Economics 
Pages: 365-369 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327146 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:365-369




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Chletsos 
Author-X-Name-First: Michael 
Author-X-Name-Last: Chletsos 
Author-Name: Christos Kollias 
Author-X-Name-First: Christos 
Author-X-Name-Last: Kollias 
Title: Testing Wagner's law using disaggregated public expenditure data in the case of Greece: 1958-93 
Abstract:
  The factors that have influenced the growth of public expenditures have
 been the subject of extensive theoretical and empirical research. The
 validity of Wagner's law in the case of Greece is tested using
 disaggregated public expenditure data for the period 1958-93. The
 methodology employed is that of cointegration and the related notion of
 error correction. Results reported here suggest that in the case of Greece
 only the growth of defence expenditure may be explained in terms of
 Wagner's law. 
Journal: Applied Economics 
Pages: 371-377 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327155 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327155 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:371-377




Template-Type: ReDIF-Article 1.0
Author-Name: Subal Kumbhakar 
Author-X-Name-First: Subal 
Author-X-Name-Last: Kumbhakar 
Title: Efficiency estimation with heteroscedasticity in a panel data model 
Abstract:
  This paper deals with the estimation of efficiency in a panel data
 framework. A oneway error component model (ECM) is generalized to
 accommodate firm-specific variances for the inefficiency component. A
 multi-step procedure is developed to estimate the cost function and
 predict increase in cost due to inefficiency. The model is applied to
 examine efficiency of ten major investor owned electric utilities in Texas
 during 1966-1985. The production technology is represented by a translog
 cost function that is assumed to be the same for every utility (except for
 heterogeneous intercepts), but it is allowed to shift over time due to
 technical change. The data supports the ECM with firm-specific variances
 and rejects the homoscedastic ECM. Cost inefficiency is found to vary
 substantially across utilities ranging from 0 to 28%. Technical change is
 found to be quite small (less than &#xb1; 1%), especially during
 1971-1985. 
Journal: Applied Economics 
Pages: 379-386 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327164 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327164 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:379-386




Template-Type: ReDIF-Article 1.0
Author-Name: Ian Rongve 
Author-X-Name-First: Ian 
Author-X-Name-Last: Rongve 
Title: Statistical inference for poverty indices with fixed poverty lines 
Abstract:
  The consistency and asymptotic normality of estimators for two classes of
 poverty indices, decomposable indices, and Sen-like indices is
 demonstrated. Asymptotic variance expressions are obtained that allow for
 easy distribution-free statistical inference on the resulting estimates.
 An empirical example using Canadian microdata demonstrates the feasibility
 and usefulness of the techniques. 
Journal: Applied Economics 
Pages: 387-392 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327173 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327173 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:387-392




Template-Type: ReDIF-Article 1.0
Author-Name: David Whynes 
Author-X-Name-First: David 
Author-X-Name-Last: Whynes 
Author-Name: Darrin Baines 
Author-X-Name-First: Darrin 
Author-X-Name-Last: Baines 
Author-Name: Keith Tolley 
Author-X-Name-First: Keith 
Author-X-Name-Last: Tolley 
Title: Prescribing costs in UK general practice: the impact of hard budget constraints 
Abstract:
  The development of an internal market in UK public sector health care has
 introduced hard budget constraints for those general practitioner
 purchasers who elect to hold their own budgets or 'funds'. Prescription
 medicines constitute an element of the fundholder's budget and a
 theoretical model is developed to explain how hardening constraints might
 be expected to impact upon prescribing decisions. The model is based on a
 trade-off between prescribing and budget surplus and it predicts, inter
 alia, that both the prescribing costs and volume of medicines prescribed
 by fundholders will be lower than for non-fundholders. A reduction in
 X-inefficiency is also predicted, manifested as a higher rate of generic
 prescribing and the use of computerized prescribing management. The model
 is found to be consistent with the observed facts in one English health
 authority (Lincolnshire). 
Journal: Applied Economics 
Pages: 393-399 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327182 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327182 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:393-399




Template-Type: ReDIF-Article 1.0
Author-Name: Abdur Chowdhury 
Author-X-Name-First: Abdur 
Author-X-Name-Last: Chowdhury 
Title: The financial structure and the demand for money in Thailand 
Abstract:
  This paper uses recently developed econometric techniques to investigate
 the demand for money in Thailand. Initial estimates show the absence of
 any long-term, unique relationship among a monetary aggregate (M1 or M2),
 an income and a price variable. However, the introduction of an exchange
 rate in the above relationship shows the presence of a cointegrating
 relationship. This provides some support to McKinnon's hypothesis of
 currency substitution. It also raises some concern about the
 closed-economy focus of earlier studies on money demand in Thailand.
 Addition of a foreign interest variable to the above models provide some
 support to the capital mobility hypothesis. The long-run elasticity
 estimates for the M1 equation raise some doubts about the desirability of
 using this monetary aggregate as an intermediate target by the Bank of
 Thailand. The null hypothesis of a unit income elasticity and zero foreign
 interest elasticity are not rejected, but the hypothesis of price
 homogeneity is rejected. Moreover, the short-term forecasts of M1 are
 biased. On the other hand, the long-run elasticities for the M2 equation
 are within the expected range while the equation itself exhibits
 structural stability during the sample period and provides unbiased
 forecasts. 
Journal: Applied Economics 
Pages: 401-409 
Issue: 3 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327191 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327191 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:401-409




Template-Type: ReDIF-Article 1.0
Author-Name: Gwendolyn Morrison 
Author-X-Name-First: Gwendolyn 
Author-X-Name-Last: Morrison 
Title: Willingness to pay and willingness to accept: some evidence of an endowment effect 
Abstract:
  The source of the disparity between willingness to pay (WTP) and
 willingness to accept (WTA) measures of value has been the subject of
 recent debate in the literature. This paper presents the results of a
 pilot experiment designed to test whether, contrary to the findings of
 Shogren et al. (1994), the endowment effect might be a significant source
 of the WTP/WTA divergence. The results are a direct contradiction of what
 the substitutability argument would predict and, thus, indicate that the
 endowment effect cannot yet be dismissed as a possible driving force
 behind the disparity. 
Journal: Applied Economics 
Pages: 411-417 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326903 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:411-417




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitris Hatzinikolaou 
Author-X-Name-First: Dimitris 
Author-X-Name-Last: Hatzinikolaou 
Title: Does government growth reduce precautionary saving? 
Abstract:
  The paper extends the constant-relative-risk-aversion model by
 endogenizing the Arrow-Pratt coefficient of relative risk aversion. The
 empirical application treats this coefficient as a linear function of the
 rate of growth of real government expenditure per worker and estimates a
 Euler equation for consumption using Greek annual aggregate data for the
 period 1960-1993. The results support the view that government growth may
 cause a typical consumer to become less risk averse and save less. 
Journal: Applied Economics 
Pages: 419-423 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326912 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326912 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:419-423




Template-Type: ReDIF-Article 1.0
Author-Name: Leo Kahane 
Author-X-Name-First: Leo 
Author-X-Name-Last: Kahane 
Author-Name: Stephen Shmanske 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Shmanske 
Title: Team roster turnover and attendance in major league baseball 
Abstract:
  Empirical support is shown for the propositionthat sports fans prefer the
 composition of their home team to remain the same from season to season.
 Controlling for price, income, population, team quality, league, year, the
 stadium effects, the regression results indicate that for each percentage
 point increase in the turnover of the composition of the team, attendance
 will fall by about 0.7%. The implications of this heretofore ignored
 tendency are briefly discussed. 
Journal: Applied Economics 
Pages: 425-431 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326921 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326921 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:425-431




Template-Type: ReDIF-Article 1.0
Author-Name: Manolis Kavussanos 
Author-X-Name-First: Manolis 
Author-X-Name-Last: Kavussanos 
Title: The dynamics of time-varying volatilities in different size second-hand ship prices of the dry-cargo sector 
Abstract:
  This paper examines the dynamics of conditional volatilities in the world
 dry-bulk market for second-hand ships. In particular, it models and
 compares volatility estimates between different size vessels using monthly
 data. The recently developed class of autoregressive conditional
 heteroskedasticity (ARCH) models are utilized for this purpose. It is
 found that broadly speaking prices of small vessels are less volatile than
 larger ones, and the nature of these volatilities vary across sizes.
 Panamax volatilities are mostly driven by old 'news', while new shocks are
 more important for Handysize and Capesize volatilities. Furthermore,
 conditional volatilities of Handysize and Panamax prices are positively
 related to interest rates and Capesize to time-charters. 
Journal: Applied Economics 
Pages: 433-443 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326930 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326930 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:433-443




Template-Type: ReDIF-Article 1.0
Author-Name: Brian Gould 
Author-X-Name-First: Brian 
Author-X-Name-Last: Gould 
Title: Consumer promotion and purchase timing: the case of cheese 
Abstract:
  The dynamics of cheese purchases is analysed by estimating a series of
 econometric models of duration based on a 170 week household panel.
 Besides purchase quantity and price data, information with respect to
 coupon use and household demographic characteristics are used in a variety
 of models which build upon each other in terms of assumed distribution of
 interpurchase time, effect of previous purchases, role of demographic
 characteristics and effect of unobserved interpurchase time heterogeneity.
 Likelihoodratio tests clearly reject the null hypothesis that coupon use
 has no impact on cheese purchase timing. 
Journal: Applied Economics 
Pages: 445-457 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326949 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326949 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:445-457




Template-Type: ReDIF-Article 1.0
Author-Name: Atanu Saha 
Author-X-Name-First: Atanu 
Author-X-Name-Last: Saha 
Author-Name: Arthur Havenner 
Author-X-Name-First: Arthur 
Author-X-Name-Last: Havenner 
Author-Name: Hovav Talpaz 
Author-X-Name-First: Hovav 
Author-X-Name-Last: Talpaz 
Title: Stochastic production function estimation: small sample properties of ML versus FGLS 
Abstract:
  Just-Pope production functions have been traditionally estimated by
 feasible generalized least squares (FGLS). This paper investigates the
 small-sample properties of FGLS and maximum likelihood (ML) estimators in
 heteroscedastic error models. Monte Carlo experiment results show that in
 small samples, even when the error distribution departs significantly from
 normality, the ML estimator is more efficient and suffers from less bias
 than FGLS. Importantly, FGLS was found to seriously understate the risk
 effects of inputs and provide biased marginal product estimates. These
 results are explained by showing that the FGLS criteria being optimized at
 the multiple stages are not logically consistent. 
Journal: Applied Economics 
Pages: 459-469 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326958 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326958 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:459-469




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Ayuso 
Author-X-Name-First: Juan 
Author-X-Name-Last: Ayuso 
Author-Name: Maria Perez-Jurado 
Author-X-Name-First: Maria 
Author-X-Name-Last: Perez-Jurado 
Title: Devaluations and depreciation expectations in the EMS 
Abstract:
  This paper proposes a method to estimate separately the size of the
 expected depreciation in an eventual devaluation of the central parity in
 the ERM, and the probability assigned by agents to this devaluation
 occurring in the short run. The proposed method complements the
 information provided by the jumps observed in market exchange rates around
 realignments with the information contained in interest rate differentials
 on the future behaviour of exchange rates. The separation of probability
 and size allows a richer analysis of the effects of devaluations on
 exchange rate credibility in the ERM. 
Journal: Applied Economics 
Pages: 471-484 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326967 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326967 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:471-484




Template-Type: ReDIF-Article 1.0
Author-Name: Oluwole Owoye 
Author-X-Name-First: Oluwole 
Author-X-Name-Last: Owoye 
Title: Income velocity and the variability of money growth: evidence from less developed countries 
Abstract:
  This paper examines whether the variability of money growth caused
 changes in income velocity of money in 30 less developed countries.
 Time-series data show year-to-year variations in income velocity of money
 in these countries for the 1961-1990 period. Empirical results based on
 causality but complemented by variance decomposition tests show that money
 growth is the most important determinant in explaining the variability in
 income velocity in at least 20 of the 30 developing countries examined in
 this study. In addition, the causality results show that inflation rate
 Granger-causes income velocity of money in 21 countries, but the variance
 decomposition results show inflation rate to be relatively more important
 in explaining the variability of velocity in eight countries. Similarly,
 while real income Granger-causes velocity of money in 18 countries, the
 results of the variance decomposition tests show real income to be
 relatively more important as a determinant of income velocity in two
 countries. Overall, these results show that the Grangercausality as a test
 of predictability does not show the effects of shocks to one variable on
 another, but the variance decomposition test provides evidence with
 respect to the effects of shocks. 
Journal: Applied Economics 
Pages: 485-496 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326976 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326976 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:485-496




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Huttin 
Author-X-Name-First: Christine 
Author-X-Name-Last: Huttin 
Title: Income distribution and consumer demand for health services. The case of prescribed medicines in the USA 
Abstract:
  The relationship between pharmaceutical expenditures and income is
 analysed for a sample of 7981 patients, insured with a private plan
 extracted from the American National Medical Expenditures Survey. The
 influence of factors such as health status, characteristics of group
 versus nongroup health plans and job stability profile on the income
 effect in the use of prescribed medicine is investigated. It is found that
 the effect of income on pharmaceutical consumption is negative. Probably
 clinical and epidemiological factors as well as economic factors are taken
 into account in a measure such as income; different income groups reflect
 therefore different patterns of use of pharmaceutical services. The income
 effect is larger in the case of group plans than nongroup plans. For
 patients with a poor health status, the positive effect of health
 insurance on the remaining disposable income seems to lead to positive
 income effect on pharmaceutical use. Finally a positive income effect on
 drug use is observed for patients currently employed, who were laid off
 during the period of the survey, but were confident of acquiring a job. So
 either positive or negative signs between pharmaceutical use and income
 were observed for groups of patients with different health status, job
 stability or type of health plans. 
Journal: Applied Economics 
Pages: 497-503 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326985 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326985 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:497-503




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Miller 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Miller 
Author-Name: Athanasios Noulas 
Author-X-Name-First: Athanasios 
Author-X-Name-Last: Noulas 
Title: Portfolio mix and large-bank profitability in the USA 
Abstract:
  The US banking system has just emerged from a troublesome period with
 many institutions struggling for survival. We examine large commercial
 banks during the latter part of the 1980s to determine what factors
 affected bank profitability, using both cross-section and pooled
 time-series cross-section regressions. Our conclusions are that large
 banks experienced poor performance because of a declining quality of the
 loan portfolio. Real estate loans generally have a negative effect on
 large bank profitability, although not at high levels of significance;
 construction and land development loans, the exception, have a strong
 positive effect. 
Journal: Applied Economics 
Pages: 505-512 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326994 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326994 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:505-512




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel 
Author-X-Name-First: Rajeev 
Author-X-Name-Last: Goel 
Author-Name: Daniel Rich 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Rich 
Title: On the adoption of new technologies 
Abstract:
  We investigate the incentives of private firms to adopt new technologies.
 Econometric investigation is performed on a pooled sample of individual US
 airline firms over the period 1971 to 1986 for which extensive information
 on available jet aircraft technology and fleet choice have been recorded.
 Given the incidence of successive commercial aircraft innovations and
 variation in production attributes across firms, we are able to consider a
 wider array of 'time-dependent' and 'time-independent' adoption influences
 than in previous firm-level studies. To the extent that our study provides
 useful general insights into adoption decisions by firms, the results have
 implications for US global competitiveness policy. One key finding is that
 firms subject to increased product market competition exhibit a higher
 propensity to adopt technological innovations. 
Journal: Applied Economics 
Pages: 513-518 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:513-518




Template-Type: ReDIF-Article 1.0
Author-Name: Arjun Bedi 
Author-X-Name-First: Arjun 
Author-X-Name-Last: Bedi 
Author-Name: Noel Gaston 
Author-X-Name-First: Noel 
Author-X-Name-Last: Gaston 
Title: Returns to endogenous education: the case of Honduras 
Abstract:
  The rapid expansion of the education sector in developing countries and
 the scarcity of public funds have increased the need for an accurate
 evaluation of educational policies. Estimates of rates of return to
 education have often been used as an integral part of cost-benefit studies
 and programme evaluation efforts. This study uses household survey data
 from Honduras for 1990 to estimate returns to education that allow for
 worker heterogeneity and individual self-selection in the education
 process. A sequential estimation procedure is used that enables study of
 the interaction between educational attainment and earnings determination.
 It is found that accounting for endogenous educational attainment leads to
 substantially higher estimated returns to education (compared to
 traditional least squares estimates). The possible magnitude of the bias
 underscores the importance of recognizing the role of self-selection and
 comparative advantage in the education process. 
Journal: Applied Economics 
Pages: 519-528 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:519-528




Template-Type: ReDIF-Article 1.0
Author-Name: Mukhtar Ali 
Author-X-Name-First: Mukhtar 
Author-X-Name-Last: Ali 
Author-Name: Richard Thalheimer 
Author-X-Name-First: Richard 
Author-X-Name-Last: Thalheimer 
Title: Transportation costs and product demand: wagering on parimutuel horse racing 
Abstract:
  Parimutuel horse-race wagering is in many respects like any other
 economic good but it differs in one important way from a vast majority of
 them. Given the present market arrangement, this good cannot be
 transported to the consumer; instead the consumer must travel to the
 production site where the good is consumed as it is produced. Thus,
 transportation costs must play a crucial role in the demand decision for
 horse-race wagering. The consumers incur not only out-of-pocket expenses
 for travelling but also the cost of the time required to travel to and to
 consume the product. Moreover, consumers incur differential costs in
 obtaining the same product because of their locational differences.
 Wagering demands are theorized to be the consequence of the choice of
 utility maximizing consumers which incorporates this special
 characteristic of the product. Models for parimutuel horse-race wagering
 are then estimated both for thoroughbred and for harness horse racing in
 the state of New Jersey. It is found that both harness and thoroughbred
 horse-race wagering are sensitive to travelling costs and both can be
 increased by reducing the costs per visit to wagering sites. These costs
 can be lowered by reducing the travelling distance of the consumers to the
 wagering sites. This can be achieved by increasing the number of racing
 days or by simply reallocating a given number of racing days among
 different locations. It can also be achieved by increasing the number of
 wagering sites and locating them strategically. It is interesting to see
 that travelling distance declines non-linearly as the number of racing
 days and/or the number of sites is increased and the decline is
 insignificant as the number of racing days and/or the number of sites is
 increased beyond a saturation point. The unique construction of travelling
 costs allows investigation of wagering impacts of an introduction of a new
 wagering site or an elimination of an existing one. 
Journal: Applied Economics 
Pages: 529-542 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327029 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:529-542




Template-Type: ReDIF-Article 1.0
Author-Name: M. I. Ansari 
Author-X-Name-First: M. I. 
Author-X-Name-Last: Ansari 
Author-Name: D. V. Gordon 
Author-X-Name-First: D. V. 
Author-X-Name-Last: Gordon 
Author-Name: C. Akuamoah 
Author-X-Name-First: C. 
Author-X-Name-Last: Akuamoah 
Title: Keynes versus Wagner: public expenditure and national income for three African countries 
Abstract:
  The public expenditure/income hypothesis has long been debated in
 economics. Following Keynes, public expenditure is seen as an exogenous
 factor to be used as a policy instrument to influence growth. On the other
 hand, Wagner argues that expenditure is an endogenous factor or an
 outcome, not a cause, of growth in national income. The purpose of this
 paper is to apply both the Granger and Holmes-Hutton statistical
 procedures to test the income-expenditure hypothesis for three African
 countries-Ghana, Kenya and South Africa. We find that the hypothesis of
 public expenditure causing national income is not supported by the data
 for these African countries. 
Journal: Applied Economics 
Pages: 543-550 
Issue: 4 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497327038 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:543-550




Template-Type: ReDIF-Article 1.0
Author-Name: Regina Riphahn 
Author-X-Name-First: Regina 
Author-X-Name-Last: Riphahn 
Title: Disability retirement and unemployment - substitute pathways for labour force exit? An empirical test for the case of Germany 
Abstract:
  This paper studies the determinants of disability retirement and
 unemployment of older workers, two labour market phenomena which the
 German public discussion combines under the label of early retirement. The
 implicit assumption that these two mechanisms are exchangeable pathways
 into permanent retirement is tested. Using panel data the transition rates
 from employment into disability retirement and into unemploymentare
 estimated and compared. Statistical tests reject the hypothesis that
 disability retirement and unemployment are substitutes. 
Journal: Applied Economics 
Pages: 551-561 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326769 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326769 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:551-561




Template-Type: ReDIF-Article 1.0
Author-Name: Verughese Jacob 
Author-X-Name-First: Verughese 
Author-X-Name-Last: Jacob 
Author-Name: Subhash Sharma 
Author-X-Name-First: Subhash 
Author-X-Name-Last: Sharma 
Author-Name: Richard Grabowski 
Author-X-Name-First: Richard 
Author-X-Name-Last: Grabowski 
Title: Capital stock estimates for major sectors and disaggregated manufacturing in selected OECD countries 
Abstract:
  Different countries use different methods of estimating net capital stock
 at the aggregated as well as at the disaggregated levels. While analysing
 cross-country data, for consistency it is important that capital stock
 series be estimated by the same method across all the countries in the
 model. Out of this necessity, this paper produces consistent (in the sense
 that the same method is used across all countries) estimates of yearly net
 capital stock from 1970 to 1992 for selected major sectors and
 disaggregated manufacturing sectors in 15 OECD countries, namely:
 Australia, Belgium, Canada, Denmark, Finland, France, Germany, Iceland,
 Italy, Japan, Luxembourg, Norway, Sweden, United Kingdom and the United
 States. The major sectors considered are: agriculture, hunting, forestry
 and fishing; communications; construction; finance, insurance and real
 estate; government service providers; mining and quarrying; retail,
 wholesale and hospitality industry; transportation and storage, and total
 manufacturing. The disaggregated sectors considered are: food industries,
 beverage and tobacco; textile, apparel and leather; wood products and
 furniture; paper, printing and publishing; chemical products; non-metallic
 mineral products; basic metal industries; fabricated metal products, and
 other manufacturing sectors. 
Journal: Applied Economics 
Pages: 563-579 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326778 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:563-579




Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Brown 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Brown 
Author-Name: John Sessions 
Author-X-Name-First: John 
Author-X-Name-Last: Sessions 
Title: Housing, privatization and the 'Right to Buy' 
Abstract:
  This paper proffers the first formal econometric analysis into the
 privatization of public housing under the Conservative Government's 'Right
 to Buy' (RTB) legislation. Results reveal that both actual and prospective
 RTB beneficiaries exhibit significantly different demographic and
 attitudinal characteristics from other owneroccupiers and council tenants.
 Given the close links between housing tenure and labour mobility, a closer
 analysis of these differences would be informative in any analysis of the
 RTB scheme, and in any future review of housing policy. 
Journal: Applied Economics 
Pages: 581-590 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326787 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326787 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:581-590




Template-Type: ReDIF-Article 1.0
Author-Name: Lucio Sarno 
Author-X-Name-First: Lucio 
Author-X-Name-Last: Sarno 
Title: Policy convergence, the exchange rate mechanism and the misalignment of exchange rates. Some tests of purchasing power parity and generalized purchasing power parity 
Abstract:
  The paper focuses on the convergence issues and the long-run credibility
 of the European Monetary System (EMS), and, more specifically, on the
 evaluation of the effectiveness of the Exchange Rate Mechanism (ERM) in
 generating a stabilizing effect on real exchange rates across member
 countries. For this purpose, we execute some tests of long-run purchasing
 power parity (PPP) for an ERM group and a non-ERM group of countries using
 both the Engle and Granger procedure and the more powerful Johansen
 cointegration technique. We also execute a test of Generalized PPP,
 exploiting an idea developed by Enders and Hurn. Testing for PPP in a
 multicountry setting may be a useful methodology to identify the optimal
 currency area suggested by the data generation process, on the basis of
 the reported homogeneity of real exchange rate behaviour of the countries
 considered. 
Journal: Applied Economics 
Pages: 591-605 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326796 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:591-605




Template-Type: ReDIF-Article 1.0
Author-Name: F. Alejandro Villagomez 
Author-X-Name-First: F. Alejandro 
Author-X-Name-Last: Villagomez 
Title: Private saving, interest rates and liquidity constraints in LDCs: recent evidence 
Abstract:
  There is still considerable controversy about the interest rate
 responsiveness of private saving in developing countries. This paper
 provides recent evidence based on individual country estimations for a
 sample of 16 countries. The model used here follows the 'uler equation
 approach' and includes rational and forward-looking permanent income
 consumers together with liquidity-constrained consumers. Overall, for this
 sample of countries the results obtained in this paper offer new evidence
 of a low responsiveness of saving to changes in the interest rate. My
 results also support a strong role of liquidity constraints in these
 countries. 
Journal: Applied Economics 
Pages: 607-615 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326804 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:607-615




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow 
Author-X-Name-First: Michael 
Author-X-Name-Last: Marlow 
Title: Public education supply and student performance 
Abstract:
  This paper develops a model of public exchange whereby voters and
 education policy makers exchange with one another within school districts.
 Because school district consolidation lowers alternatives to
 voters-parents, consolidation is hypothesized to raise public education
 spending because weakened intergovernmental competition allows policy
 makers to promote their own utility, rather than that of constituents.
 Models of public education spending and academic performance are estimated
 over 1988-1990. While evidence indicates little support for the
 traditional treatment of the Leviathan hypothesis that greater competition
 lowers public spending, this paper argues that education spending by
 itself does not fully provide a valid test of the Leviathan hypothesis
 since spending, by itself, does not necessarily indicate the quality of
 public education programmes. Empirical evidence indicates that greater
 numbers of schools and school districts promote higher student achievement
 as evidenced by higher math and verbal SAT scores, math proficiency of 8th
 graders, and lower high school drop-out rates. Evidence therefore suggests
 that, while greater numbers of school districts and schools are, to some
 degree, associated with higher public education spending, higher student
 achievement appears to follow as well. 
Journal: Applied Economics 
Pages: 617-626 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326813 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:617-626




Template-Type: ReDIF-Article 1.0
Author-Name: Stilianos Fountas 
Author-X-Name-First: Stilianos 
Author-X-Name-Last: Fountas 
Author-Name: Agapitos Papagapitos 
Author-X-Name-First: Agapitos 
Author-X-Name-Last: Papagapitos 
Title: Policy credibility in the ERM: evidence from six countries using an ARCH approach 
Abstract:
  The issue of credibility and capital mobility in the EMS is re-examined
 using an alternative methodology, as well as a longer sample period than
 previous studies. In particular, the dynamic relationship between interest
 rate differentials and the exchange rate risk premium is emphasized. The
 relationship between the premium and credibility is then used in order to
 identify patterns of credibility in ERM countries. Credibility in the case
 of Italy has declined post-1985, as indicated by the rising exchange rate
 risk premium. For Denmark, France and Ireland, credibility seems to be
 increasing up to the currency crisis period and for Belgium and Holland
 credibility increased early in the period and remained high during the
 rest of the period. 
Journal: Applied Economics 
Pages: 627-637 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326822 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326822 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:627-637




Template-Type: ReDIF-Article 1.0
Author-Name: Omer Gokcekus 
Author-X-Name-First: Omer 
Author-X-Name-Last: Gokcekus 
Title: Trade liberalization and productivity growth: new evidence from the Turkish rubber industry 
Abstract:
  This paper empirically examines the effects of a change in foreign trade
 regime on productivity growth. Based on a Generalized Leontief factor
 demand function system, total factor productivity growth (TFPG) rates are
 calculated for the Turkish rubber industry during a substantial trade
 liberalization in the 1980s: TFPG was significantly higher following trade
 liberalization. Technological change was the major contributor to this
 growth. When a panel data estimation technique is used to explain
 technological change, the effects of trade liberalization become clearer:
 a one percentage point increase in the protection level led to more than a
 one percentage point (1.27) decline in the technological change rate. 
Journal: Applied Economics 
Pages: 639-645 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326831 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326831 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:639-645




Template-Type: ReDIF-Article 1.0
Author-Name: John Hudson 
Author-X-Name-First: John 
Author-X-Name-Last: Hudson 
Title: Company bankruptcies and births matter 
Abstract:
  This paper constructs a simple supply orientated model of the economy in
 which company bankruptcies which lead to a loss of capital and births have
 impacts on macroeconomic variables. Bankruptcies will reduce output,
 increase unemployment, worsen the balance of payments and also impact upon
 inflation. Empirical work based on data from both the USA and the UK finds
 a significant Granger causality relationship between bankruptcies and
 births and these four macroeconomic variables. The standard Granger
 causality regression is supplemented by non-linear Granger causality
 tests. 
Journal: Applied Economics 
Pages: 647-654 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326840 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326840 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:647-654




Template-Type: ReDIF-Article 1.0
Author-Name: Erkki Koskela 
Author-X-Name-First: Erkki 
Author-X-Name-Last: Koskela 
Author-Name: Matti Viren 
Author-X-Name-First: Matti 
Author-X-Name-Last: Viren 
Title: An occupational choice model of crime switching 
Abstract:
  A quasi-linear, additively separable utility function is used to describe
 preferences between consumption and leisure and analyse occupational
 choice between one non-criminal and two criminal activities when
 individuals are heterogeneous in terms of their productivity. Occupational
 specialization takes place at the individual level according to their
 relative productivity in various activities. The aggregate amount of
 criminal activity features crime switching; the criminal activity depends
 negatively on its probability of detection, its penalty rate if caught and
 on the rate of return from alternative criminal activity and positively on
 the probability of detection and penalty rate of alternative criminal
 activity. Some empirical evidence from Finland about auto thefts and
 robberies lies in conformity with crime-switching hypothesis. 
Journal: Applied Economics 
Pages: 655-660 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326859 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326859 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:655-660




Template-Type: ReDIF-Article 1.0
Author-Name: Matiur Rahman 
Author-X-Name-First: Matiur 
Author-X-Name-Last: Rahman 
Author-Name: Muhammad Mustafa 
Author-X-Name-First: Muhammad 
Author-X-Name-Last: Mustafa 
Author-Name: Daryl Burckel 
Author-X-Name-First: Daryl 
Author-X-Name-Last: Burckel 
Title: Dynamics of the yen-dollar real exchange rate and the US-Japan real trade balance 
Abstract:
  This paper employs cointegration and error correction models to examine
 the dynamics of the yen-dollar real exchange rate and the US-Japan real
 trade balance. It uses quarterly data from 1973.I-1993.IV. The unit root
 tests reveal non-stationarity in both the variables. The ADF test fails to
 affirm any long-run association between the yen-dollar real exchange rate
 and the US-Japan real trade balance. Also, there is evidence of
 bidirectional short-run Granger causality between these two variables with
 mutual feedbacks. 
Journal: Applied Economics 
Pages: 661-664 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326868 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326868 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:661-664




Template-Type: ReDIF-Article 1.0
Author-Name: Jati Sengupta 
Author-X-Name-First: Jati 
Author-X-Name-Last: Sengupta 
Title: Persistence of dynamic efficiency in Farrell models 
Abstract:
  This article focuses on productivity transitions from low to high levels
 of efficiency over time in the framework of the Farrell efficiency model.
 This transition probability approach is applied in two empirical
 applications in order to test the persistence of Farrell efficiency over
 time. The first application involves the efficiency comparisons in the
 public sector, while the second in the private sector. Both applications
 appear to exhibit a high degree of efficiency persistence over time. 
Journal: Applied Economics 
Pages: 665-671 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326877 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326877 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:665-671




Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Bodo 
Author-X-Name-First: Giorgio 
Author-X-Name-Last: Bodo 
Author-Name: Andrea Cividini 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Cividini 
Title: Improved estimates of preliminary industrial production data 
Abstract:
  This study compares Italy's preliminary industrial production index with
 the final data and with the performance of alternative forecasts. It also
 presents a methodology for providing more accurate estimates of the index
 than the original official data. The improvement in accuracy and bias is
 obtained using the information contained in the two time series
 themselves. 
Journal: Applied Economics 
Pages: 673-681 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326886 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:673-681




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Kim 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Kim 
Title: The cyclical behaviour of prices: G-7 versus non-G7 countries 
Abstract:
  The cyclical behaviour of prices and inflation is investigated for G-7
 and seven non-G7 countries for the postwar period. The quarterly prices
 are shown to be clearly countercyclical in the G-7 countries, while they
 are much less so in the non-G7 countries. Inflation is shown to move
 procyclically and this is more clearly pronounced in the G-7 than non-G7
 countries. This discrepancy in results may result from the
 demand-management policies that these non-G7 countries have adopted in the
 past and this cautions the students of business cycles to pay attention to
 the peculiarities of each economy when modelling the business cycle. 
Journal: Applied Economics 
Pages: 683-691 
Issue: 5 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326895 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:683-691




Template-Type: ReDIF-Article 1.0
Author-Name: Yousif Khalifa Al-Yousif 
Author-X-Name-First: Yousif Khalifa 
Author-X-Name-Last: Al-Yousif 
Title: Exports and economic growth:some empirical evidence from the Arab Gulf countries 
Abstract:
  This paper investigates the relationship between exports and economic
 growth in four of the Arab Gulf countries, namely, Saudi Arabia, Kuwait,
 UAE, and Oman for the period 1973-93. The estimates presented indicate a
 positive and significant relation between the two variables. Also, the
 statistical adequacy of the models used is supported by the following
 diagnostic tests. The Bruesch-Godfrey statistic suggests the absence of
 serial correlation. The Farely-Hinich test fails to reject the null
 hypothesis that the models are structurally stable. And both the White and
 Hausman specification tests show that the models are correctly specified. 
Journal: Applied Economics 
Pages: 693-697 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326624 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326624 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:693-697




Template-Type: ReDIF-Article 1.0
Author-Name: Nikos Apergis 
Author-X-Name-First: Nikos 
Author-X-Name-Last: Apergis 
Author-Name: John Papanastasiou 
Author-X-Name-First: John 
Author-X-Name-Last: Papanastasiou 
Author-Name: Kostas Velentzas 
Author-X-Name-First: Kostas 
Author-X-Name-Last: Velentzas 
Title: The credibility of policy announcements: Greek evidence 
Abstract:
  This paper by using error correction (EC) methodology, along with Chow
 stability tests, examines whether three cases of policy announcements in
 Greece, over the 1975-1995 period, have been considered credible or not by
 the public. Focusing on the Phillips curve trade-off, the empirical
 findings reveal that two out of three policy announcements are
 characterized as credible by private agents. 
Journal: Applied Economics 
Pages: 699-705 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326633 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326633 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:699-705




Template-Type: ReDIF-Article 1.0
Author-Name: Kathleen Day 
Author-X-Name-First: Kathleen 
Author-X-Name-Last: Day 
Author-Name: Rose Anne Devlin 
Author-X-Name-First: Rose Anne 
Author-X-Name-Last: Devlin 
Title: Can volunteer work help explain the male-female earnings gap? 
Abstract:
  Using the 1987 Survey of Volunteer Activity in Canada, we examine whether
 differential returns to volunteer work in the paid labour market can
 explain part of the male-female earnings gap. Male volunteers earn, on
 average, about 11% higher incomes than their non-volunteering counterparts
 as a result of their volunteer experience, whereas comparable female
 volunteers and non-volunteers earn similar incomes. This differential
 return across the sexes may be partially explained by the type of
 volunteer activity undertaken. Our results indicate that as much as one
 third of the male-female earnings gap may be attributable to the fact that
 the labour market rewards male and female volunteers differently. 
Journal: Applied Economics 
Pages: 707-721 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326642 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:707-721




Template-Type: ReDIF-Article 1.0
Author-Name: Lourdes Moreno 
Author-X-Name-First: Lourdes 
Author-X-Name-Last: Moreno 
Title: The determinants of Spanish industrial exports to the European Union 
Abstract:
  This paper investigates the determinants of trends in Spain's industrial
 exports to the other European Union countries by using a sectoral panel
 data approach. The results show that price elasticities of export demand
 differ widely among sectors. They also provide support to the idea that
 non-price factors have a significant influence on international
 competitiveness. In particular they show that technological and
 advertising effort have a significant effect not only on the evolution of
 exports but also on price elasticity. 
Journal: Applied Economics 
Pages: 723-732 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326651 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326651 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:723-732




Template-Type: ReDIF-Article 1.0
Author-Name: Namkee Ahn 
Author-X-Name-First: Namkee 
Author-X-Name-Last: Ahn 
Author-Name: Sara La De Rica 
Author-X-Name-First: Sara 
Author-X-Name-Last: La De Rica 
Title: The underground economy in Spain: an alternative to unemployment? 
Abstract:
  This paper analyses the factors which determine whether an individual
 works in the formal sector, in the informal sector, or remains unemployed
 in the Spanish labour market. We highlight the implications of high
 unemployment on an individual's decision to work in the underground
 economy. We postulate that an individual decides (or is chosen) whether to
 work in the formal sector or not in a first stage and, if not, in a second
 stage decides whether to work in the underground sector or to remain
 unemployed. We estimate a bivariate probit model which controls for
 selectivity bias in the second stage. The result indicates on the one
 hand, that heads of household, who benefit more from social security
 provisions obtained in formal sector jobs, are more likely to work in such
 sector than others. Besides, demand restrictions seem to operate as
 well-individuals with higher education have easier access to the formal
 sector. On the other hand, among those who do not work in the formal
 sector, the probability of working in the informal sector relative to
 being unemployed is higher among those whose head of household works. For
 females, the probability of staying unemployed (relative to working in the
 informal sector) increases with education, suggesting that highly educated
 women prefer to search for a formal sector job rather than to work in the
 underground economy. We also examine the job search behaviour among the
 informal sector workers. 
Journal: Applied Economics 
Pages: 733-743 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326660 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326660 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:733-743




Template-Type: ReDIF-Article 1.0
Author-Name: Eirik Amundsen 
Author-X-Name-First: Eirik 
Author-X-Name-Last: Amundsen 
Author-Name: Sigve Tjotta 
Author-X-Name-First: Sigve 
Author-X-Name-Last: Tjotta 
Title: Trade and price variation in an integrated European power market 
Abstract:
  This paper examines the potential gains in terms of increased social
 surplus from integrating the power markets in Europe and assesses the
 scope for free seasonal and diurnal trade in a setting of Third Party
 Access (TPA). We construct an equilibrium model at the level of the
 wholesale markets, taking account of the existing power generating
 infrastructure (of varying flexibility) as well as the existing
 transmission network interconnecting the countries involved. The model
 indicates an overall gain from integrating the power markets. Electricity
 prices are substantially reduced for all regions involved, thus implying a
 significant redistribution of income from producers to consumers. Trade
 flourishes with regions establishing themselves as either pure exporters,
 pure importers or as intermediaries acting as transit countries. 
Journal: Applied Economics 
Pages: 745-757 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326679 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:745-757




Template-Type: ReDIF-Article 1.0
Author-Name: Raymond Hartman 
Author-X-Name-First: Raymond 
Author-X-Name-Last: Hartman 
Author-Name: David Wheeler 
Author-X-Name-First: David 
Author-X-Name-Last: Wheeler 
Author-Name: Manjula Singh 
Author-X-Name-First: Manjula 
Author-X-Name-Last: Singh 
Title: The cost of air pollution abatement 
Abstract:
  Data on 100 000 US factories is used to develop comprehensive abatement
 cost estimates by industry sector for seven major air pollutants. The
 results reveal very high intersectoral variances in marginal and average
 abatement costs: maximum/ minimum ratios are frequently near 10, and
 occasionally near 100. The implications of these new estimates are
 discussed for three policy issues: (1) the relative accuracy of forecasts
 from econometric and engineering projections for environmental policy
 analysis; (2) the cost of command-and-control regulation of air pollution
 in the US; and (3) the use of benefit-cost analysis for setting air
 pollution control priorities in developing countries. 
Journal: Applied Economics 
Pages: 759-774 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326688 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326688 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:759-774




Template-Type: ReDIF-Article 1.0
Author-Name: Leigh Drake 
Author-X-Name-First: Leigh 
Author-X-Name-Last: Drake 
Author-Name: Andy Mullineux 
Author-X-Name-First: Andy 
Author-X-Name-Last: Mullineux 
Author-Name: Juda Agung 
Author-X-Name-First: Juda 
Author-X-Name-Last: Agung 
Title: One Divisia money for Europe? 
Abstract:
  In 1992 the EU monetary authorities adopted a 'harmonized' broad money
 aggregate. The EMI was subsequently established to promote monetary policy
 coordination. This paper considers how broad money aggregates might be
 used to guide EU monetary policy and whether a 'Euro-Divisia' monetary
 index might provide a better guide than a 'Euro-simple-sum' aggregate. Our
 findings are based on data from the UK, France and Germany. They indicate
 that 'Euromoney' Granger-causes 'Europrices' and that the EuroDivisia
 monetary index is a better leading indicator of 'Euroinflation' than the
 Euro-simple-sum monetary aggregate. 
Journal: Applied Economics 
Pages: 775-786 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:775-786




Template-Type: ReDIF-Article 1.0
Author-Name: Selahattin Dibooglu 
Author-X-Name-First: Selahattin 
Author-X-Name-Last: Dibooglu 
Title: Accounting for US current account deficits: an empirical investigation 
Abstract:
  The sources of US current account deficits are investigated using a
 number of macroeconomic variables and a vector error correction model. The
 variables are those typically emphasized by the traditional income -
 expenditure approach and the intertemporal (Ricardian) approach. The
 results indicate that macroeconomic variables explain the current account
 reasonably well, and the evidence seems to support the traditional
 approach where budget deficits and increases in real interest rates and
 terms of trade are associated with current account deficits. 
Journal: Applied Economics 
Pages: 787-793 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326705 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326705 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:787-793




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Labeaga 
Author-X-Name-First: Jose 
Author-X-Name-Last: Labeaga 
Author-Name: Angel Lopez 
Author-X-Name-First: Angel 
Author-X-Name-Last: Lopez 
Title: A study of petrol consumption using Spanish panel data 
Abstract:
  Methods are proposed for the estimation of equations for consumption
 categories subject to non-participation and other types of censoring using
 an unbalanced panel data set on petrol expenditures from the Spanish
 Continuous Family Expenditure Survey. The use of panel data allows one to
 deal with two issues that pose econometric problems when dealing with
 individual budget data. On one hand, unobserved time invariant
 heterogeneity is controlled for. On the other hand, the problem of
 censoring in the dependent variable is addressed and the measurement error
 induced by infrequent purchases is corrected. Results suggest the use of
 probabilities of purchase estimated from the temporal pattern of
 expenditure records in order to carry out this correction. The estimated
 demand system is subsequently used to simulate the effects of changes in
 the taxation of petrol. 
Journal: Applied Economics 
Pages: 795-802 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326714 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326714 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:795-802




Template-Type: ReDIF-Article 1.0
Author-Name: Swarna Dutt 
Author-X-Name-First: Swarna 
Author-X-Name-Last: Dutt 
Author-Name: Dipak Ghosh 
Author-X-Name-First: Dipak 
Author-X-Name-Last: Ghosh 
Title: Are experts' expectations rational? A multicurrency analysis 
Abstract:
  Is the exchange rate expectation formation process rational? This age old
 question is looked at with survey data on exchange rate expectations at
 multiple forecast horizons. This helps to circumvent the risk premium
 issue and isolate the exchange rate expectational rationality factor. The
 econometric procedure used is the Phillips-Hansen fully modified ordinary
 least squares test. This allows one to conduct an unrestricted
 cointegration analysis and also differentiate between strong and weak
 forms of rationality. To do this separate tests are made of the bivariate
 (two currencies) and the multivariate (multicurrency) systems approach.
 Rationality in the exchange rate expectation formation process is not
 upheld in either the weak or strong form test, at any forecast horizon. 
Journal: Applied Economics 
Pages: 803-812 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326723 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326723 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:803-812




Template-Type: ReDIF-Article 1.0
Author-Name: Francis Ahking 
Author-X-Name-First: Francis 
Author-X-Name-Last: Ahking 
Title: Testing long-run purchasing power parity with a Bayesian unit root approach: the experience of Canada in the 1950s 
Abstract:
  A test is made for long-run purchasing power parity with Canadian monthly
 and quarterly data from the 1950s using a Bayesian unit-root test
 discussed by Koop, but first suggested by Zellner and Siow. Results show
 that the hypothesis that the real exchange rate is a stationary process
 receives relatively low posterior probability. Put differently, the
 probability is low that the nominal exchange rate and the national price
 levels have a stable long-run relationship. Furthermore, it is also found
 that there are structural differences between the sample period from
 October 1950 to May 1962 and the sample period from January 1952 to
 November 1960. 
Journal: Applied Economics 
Pages: 813-819 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326732 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:813-819




Template-Type: ReDIF-Article 1.0
Author-Name: Duane Rockerbie 
Author-X-Name-First: Duane 
Author-X-Name-Last: Rockerbie 
Title: Are consumers Ricardian when some are liquidity constrained? Evidence for the United States 
Abstract:
  This paper formulates and estimates a revised specification of Evans'
 (1988) test for Ricardian equivalence which incorporates the possible
 presence of liquidity constrained consumers. If liquidity constrained
 consumers are significant in number, tests using aggregate consumption
 data may tend to reject the Ricardian equivalence hypothesis when the
 model allows for liquidity constraints. A test which incorporated
 liquidity constrained consumers could not reject Ricardian equivalence
 over the sample period 1946-91. While the proportion of aggregate
 consumption which is liquidity constrained is found to be significant, it
 does not appear large enough to affect the test for Ricardian equivalence. 
Journal: Applied Economics 
Pages: 821-827 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326741 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326741 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:821-827




Template-Type: ReDIF-Article 1.0
Author-Name: Mario Fortin 
Author-X-Name-First: Mario 
Author-X-Name-Last: Fortin 
Author-Name: Abdelkrim Araar 
Author-X-Name-First: Abdelkrim 
Author-X-Name-Last: Araar 
Title: Sectoral shifts, stock market dispersion and unemployment in Canada 
Abstract:
  Considerable attention has been given in the last ten years to estimation
 of the importance of sectoral shifts in explaining short-term fluctuations
 in unemployment. Recent studies have used US stock prices data to develop
 indexes of sectoral shocks less affected by cyclical influence than
 Lilien's employment dispersion index. Two indexes of sectoral shifts for
 Canada based on the sectoral dispersion of stock prices growth rates are
 calculated. These indexes are then used in unemployment equations
 incorporating variables measuring aggregate demand shocks and structural
 changes in order to assess the importance of sectoral and cyclical shocks
 in the determination of the Canadian unemployment rate. The estimation
 leads to the conclusion that the major recessions of 1981-82 and 1990-91
 have been caused by aggregate demand shocks. However, both types of shocks
 contributed to the 1974-75 recession while the mild recession of 1980 was
 accompanied by an important sectoral shock. Estimations also show that the
 most important sectoral shock was in 1986, following the drop in energy
 prices, but a strong aggregate demand prevented any change in the
 unemployment rate at this time. The model also detects an important
 structural rise in the unemployment rate during the seventies. On the
 whole, the results show that, although sectoral shifts have the potential
 to induce short-term unemployment fluctuations, actual changes in the
 Canadian unemployment rate were mainly the consequences of monetary
 conditions and foreign demand for Canadian goods and services. 
Journal: Applied Economics 
Pages: 829-839 
Issue: 6 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326750 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326750 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:829-839




Template-Type: ReDIF-Article 1.0
Author-Name: Mandy Ryan 
Author-X-Name-First: Mandy 
Author-X-Name-Last: Ryan 
Title: Should government fund assisted reproductive techniques? A study using willingness to pay 
Abstract:
  During recent years there has been a growth in the use of assisted
 reproductive techniques (ARTs) across Europe, America and Australia. This
 has resulted in debates about whether health insurance should cover this
 procedure. This study used the closed-ended (CE) willingness to pay (WTP)
 technique to establish the value the infertile place on in vitro
 fertilization (IVF) treatment in Scotland. The intention is to consider
 the use of the economic instrument of WTP for informing the debate on the
 public provision of IVF. Assuming that the value of the service outweighs
 the cost, public provision should be encouraged. The responses suggested
 that users of the service have a mean WTP of over &#xa3;5000 for an
 attempt at IVF. This compares with an average government expenditure of
 7pound;2700. The internal validity of the CE WTP was also shown, with
 income being positively related to WTP. It is concluded that the CE WTP
 technique is potentially a useful tool for policy makers in considering
 the public provision of IVF services, and that further work is needed to
 establish the reliability and external validity of the technique. 
Journal: Applied Economics 
Pages: 841-849 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326499 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326499 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:841-849




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Brenton 
Author-X-Name-First: Paul 
Author-X-Name-Last: Brenton 
Title: Estimates of the demand for energy using cross-country consumption data 
Abstract:
  Using cross-country consumption data we estimate a system of demand
 equations in a piecewise manner to investigate whether price and
 expenditure elasticities for energy differ between broad groups of
 countries. The empirical results reject the assumption of constant
 parameters across regimes of poor and rich countries. The derived
 elasticities suggest that the own-price elasticity for energy is higher in
 poor than in rich countries. We find no evidence for the commonly held
 view that expenditure elasticities for energy decline with income. 
Journal: Applied Economics 
Pages: 851-859 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326507 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326507 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:851-859




Template-Type: ReDIF-Article 1.0
Author-Name: Allan Layton 
Author-X-Name-First: Allan 
Author-X-Name-Last: Layton 
Title: A new approach to dating and predicting Australian business cycle phase changes 
Abstract:
  Due to well-known lags, counter-cyclical macroeconomic policies often
 exacerbate, rather than ameliorate, business cycles. Early recognition of
 upcoming phase shifts, particularly contractions, may assist in
 fine-tuning such policies. This objective is pursued in the paper by
 applying Hamilton's (1989, 1990, 1991) quasi-Bayesian, Markovian,
 regime-switching model to monthly growth rates of leading, long-leading
 and coincident indexes of Australian economic activity. A simple rule
 applied to regime probabilities for each data point of the coincident
 index produces a phase chronology that is very similar to that produced by
 the Bry and Boschan (1971) turning point algorithm. The regime switching
 model is also applied to the leading and long-leading indexes. The
 application of a simple rule to the resultant regime probabilities is
 found to result in a potentially very reliable advance signalling system
 for Australian business cycle phase changes. 
Journal: Applied Economics 
Pages: 861-868 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326516 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326516 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:861-868




Template-Type: ReDIF-Article 1.0
Author-Name: Mahmood Yousefi 
Author-X-Name-First: Mahmood 
Author-X-Name-Last: Yousefi 
Author-Name: Sohrab Abizadeh 
Author-X-Name-First: Sohrab 
Author-X-Name-Last: Abizadeh 
Author-Name: Ken McCormick 
Author-X-Name-First: Ken 
Author-X-Name-Last: McCormick 
Title: Monetary stability and interest-free banking: the case of Iran 
Abstract:
  Previous research has suggested that Islamic banking systems may be more
 stable than Western systems. However, this contention has only been tested
 empirically for the case of Tunisia, a country with no significant history
 of Islamic banking. This paper replicates the study done on Tunisia for
 the case of Iran, a country with some history of Islamic banking. The
 results are mixed, with some evidence both for and against the hypothesis
 of greater stability for Islamic banking. It is suggested that a good deal
 more work must be done to prove claims about the relative stability of
 Islamic banking. 
Journal: Applied Economics 
Pages: 869-876 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326525 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:869-876




Template-Type: ReDIF-Article 1.0
Author-Name: Linda Debenedictis 
Author-X-Name-First: Linda 
Author-X-Name-Last: Debenedictis 
Title: A vector autoregressive model of the British Columbia regional economy 
Abstract:
  We construct a small vector autoregressive (VAR) model to investigate the
 usefulness of this approach to forecasting the British Columbia (BC) macro
 economy. The forecasts are compared with univariate ARIMA forecasts.
 Overall, our results suggest that the accuracy of the VAR matches or
 exceeds that of the univariate ARIMA. The accuracy of the predictions from
 our VAR model indicates that VAR as a forecasting tool, is a promising
 approach for regional forecasting and warrants further investigation.
 Formal tests for Granger causality are conducted and we find evidence of
 bi-directional causality between BC employment and prices; and
 uni-directional causality from BC GDP to both BC employment and Canadian
 GDP. Our results also suggest uni-directional causality from Canadian GDP
 to both BC employment and prices; and from prices to GDP within BC. 
Journal: Applied Economics 
Pages: 877-888 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326534 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326534 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:877-888




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Ryan 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Ryan 
Title: The behaviour of productivity growth rates and price-cost margins during contractions and expansions 
Abstract:
  Panel data on thirteen two-digit US manufacturing industries were
 analysed using a random coefficients approach to determine the behaviour
 of total factor productivity growth rates and price&#x2014;marginal cost
 ratios during recessions and expansions. Results show: (1) productivity
 growth is procyclical&#x2014;it decreases during recessions and increases
 during expansions. In addition, the decrease during recessions is greater
 than the increase during expansions; (2) the price-marginal cost ratio is
 very asymmetric &#x2014; it decreases during recessions but shows no
 significant movement during an expansion. The lower price-marginal cost
 ratio during a recession implies that the elasticity of output with
 respect to labour decreases. Thus not only does the level of productivity
 fall, but the productivity of labour relative to capital also falls. These
 characteristics are consistent with labour hoarding. 
Journal: Applied Economics 
Pages: 889-893 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326543 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326543 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:889-893




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Weber 
Author-X-Name-First: Christian 
Author-X-Name-Last: Weber 
Title: Is cyclical real GNP really more persistent than the trend? 
Abstract:
  Using an observed components decomposition to estimate permanent and
 temporary components of US real GNP, Campbell and Mankiw (1987) found that
 the estimated temporary component displays greater persistence than the
 estimated permanent component. This suggests that attempts to estimate
 separate permanent and temporary components in real GNP are unlikely to
 succeed. This finding is re-examined here using a longer real GNP series
 and a different decomposition, which guarantees that the estimated
 temporary component will be stationary. The resulting estimates of
 permanent and temporary output suggests that the temporary component
 displays no persistence and that the permanent component exhibits almost
 precisely the persistence of a random walk with drift. Cyclical real GNP
 is not more persistent than the trend. 
Journal: Applied Economics 
Pages: 895-902 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326552 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:895-902




Template-Type: ReDIF-Article 1.0
Author-Name: Geoffrey Soutar 
Author-X-Name-First: Geoffrey 
Author-X-Name-Last: Soutar 
Author-Name: Steven Cornish-Ward 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cornish-Ward 
Title: Ownership patterns for durable goods and financial assets: a Rasch analysis 
Abstract:
  There has been considerable discussion about the way in which consumers
 purchase durable and financial products and a number of modelling
 procedures have been used to examine this issue. The present paper
 outlines a study that used a new and more general scaling approach (the
 Rasch model) for this purpose, using a larger than usual set of durable
 goods, as well as a set of financial products. It was found that both sets
 of products could be analysed using the Rasch model and that there was an
 inherent order in the data. Further, respondents in the sample followed
 the same order, suggesting that examining subgroups, as has been done in
 the past, would be of little use. A set of respondents'
 backgroundcharacteristics was also collected that measured people's
 ability and willingness to purchase. It was found that high levels of
 ownership were related to people's ability to purchase rather than to
 their willingness to purchase. This suggests that the macro, rather than
 the micro, environment is likely to be the key to sales for both
 categories of products. 
Journal: Applied Economics 
Pages: 903-911 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326561 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:903-911




Template-Type: ReDIF-Article 1.0
Author-Name: Einar Bowitz 
Author-X-Name-First: Einar 
Author-X-Name-Last: Bowitz 
Title: Disability benefits, replacement ratios and the labour market. A time series approach 
Abstract:
  In this paper, a study of factors affecting the number of disability
 beneficiaries in Norway is presented. Equations determining entry rates
 into the disability benefit system are estimated using aggregated time
 series data grouped by sex and age. Unemployment is found to influence
 disability entry. The results regarding effects of the replacement ratio
 are ambiguous. A model determining the number of beneficiaries, including
 the estimated entry equations is presented. The model is used to simulate
 the effect of counterfactual changes in exogenous variables on the number
 of disability beneficiaries. 
Journal: Applied Economics 
Pages: 913-923 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326570 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:913-923




Template-Type: ReDIF-Article 1.0
Author-Name: Donald Rousslang 
Author-X-Name-First: Donald 
Author-X-Name-Last: Rousslang 
Title: International income shifting by US multinational corporations 
Abstract:
  This paper provides estimates of the amount of income shifted across
 national borders within the manufacturing operations of US multinational
 corporations (MNCs) in 1988. It is assumed that each MNC arranges its
 investments such that, after accounting for income shifting opportunities,
 the after-tax rate of return on a marginal investment is the same for all
 its affiliates, regardless of location. The income shifting is then
 inferred by comparing shares of after-tax profits, assets and sales of the
 affiliated members. It is estimated that such shifting amounted to about
 $8 billion (on net), which is less than 4% of the worldwide taxable income
 of the manufacturing MNCs. 
Journal: Applied Economics 
Pages: 925-934 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326589 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326589 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:925-934




Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Chambers 
Author-X-Name-First: Marcus 
Author-X-Name-Last: Chambers 
Author-Name: K. Ben Nowman 
Author-X-Name-First: K. Ben 
Author-X-Name-Last: Nowman 
Title: Forecasting with the almost ideal demand system: evidence from some alternative dynamic specifications 
Abstract:
  The almost ideal demand system is used as a representation of long run
 demands in discrete time and continuous time error correction models to
 produce forecasts of budget shares beyond the sample period. The estimated
 models are subjected to a battery of tests, and an analysis of the
 forecasts indicates that continuous time adjustment mechanisms, based
 around fully modified estimates of the long run preference parameters,
 provide a remarkably accurate method of forecasting budget shares. 
Journal: Applied Economics 
Pages: 935-943 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326598 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:935-943




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Andrikopoulos 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Andrikopoulos 
Author-Name: James Brox 
Author-X-Name-First: James 
Author-X-Name-Last: Brox 
Author-Name: Emanuel Carvalho 
Author-X-Name-First: Emanuel 
Author-X-Name-Last: Carvalho 
Title: The demand for domestic and imported alcoholic beverages in Ontario, Canada: a dynamic simultaneous equation approach 
Abstract:
  The purpose of this paper is to estimate simultaneously dynamic demand
 functions and, consequently, income and price elasticities for domestic
 and imported alcoholic beverages for the province of Ontario. The
 methodology used is the almost ideal demand system, originally developed
 by Deaton and Muellbauer (1980), augmented by Pollak's (1970) habit
 formation hypothesis. The empirical application uses time series
 (1958-1987) for imported and domestically produced spirits, wine and beer.
 The findings provide strong support favouring the dynamic version of the
 almost ideal demand system over its static alternative, but little
 evidence of strong substitution between domestic and imported products. 
Journal: Applied Economics 
Pages: 945-953 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326606 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326606 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:945-953




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Hazilla 
Author-X-Name-First: Michael 
Author-X-Name-Last: Hazilla 
Title: Separability and capital aggregation in sectoral models of US production 
Abstract:
  Separability plays a fundamental role in applied studies of production
 inasmuch as it provides for consistent aggregation and allows multi-stage
 estimation of models with many inputs. This paper examines whether two
 types of capital, structures and equipment, are weakly separable from
 labour and energy and materials in sectoral models of US production, and
 provides an assessment of the effects of maintaining capital separability.
 The study focuses on the elasticity of substitution as a measure of input
 association and associated standard errors and confidence intervals based
 on bootstrapping. Elasticity estimates and tests indicate that capital
 separability is generally inconsistent with data representing sectoral US
 production. Elasticity sign, however, appears robust to capital
 aggregation and performs especially well as an indicator of input
 association. 
Journal: Applied Economics 
Pages: 955-974 
Issue: 7 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326615 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326615 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:955-974




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Corvers 
Author-X-Name-First: Frank 
Author-X-Name-Last: Corvers 
Title: The impact of human capital on labour productivity in manufacturing sectors of the European Union 
Abstract:
  The effects of human capital on both the level and growth of labour
 productivity in manufacturing sectors in seven member states of the
 European Union are analysed, distinguishing between four effects of human
 capital: worker, allocative, diffusion and research. Human capital is
 represented by the shares of intermediate and highly-skilled workers in
 the workforce of a sector. It is shown that the manufacturing sectors can
 be divided into three classes of sectors with different intensities of
 highly-skilled workers: low-, medium- and high-skill sectors. The
 estimation results show that both intermediate and highly-skilled labour
 have a positive effect on the labour productivity of a sector, although
 the effect is only significant for highly-skilled labour. Moreover, there
 are indications of underinvestment of human capital in some manufacturing
 sectors. These sectors could improve their competitive position by raising
 the employment shares of intermediate and highly-skilled labour. Finally,
 intermediate-skilled labour has a significantly positive effect on the
 growth in sectoral labour productivity. 
Journal: Applied Economics 
Pages: 975-987 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:975-987




Template-Type: ReDIF-Article 1.0
Author-Name: Evan Tanner 
Author-X-Name-First: Evan 
Author-X-Name-Last: Tanner 
Title: Shifts in US savings: long-run asset accumulation versus consumption smoothing 
Abstract:
  Recently, savings rates have fluctuated considerably in the USA. The
 implications of these movements have interested both policy makers and
 economists. This paper considers two reasons why savings may change: (i) a
 change in the economy's desired long-run capital stock, and (ii) the
 economy's desire to smooth its consumption through time. To identify both
 kinds of movements in US savings, the permanent income hypothesis (PIH) is
 modified to incorporate discrete breaks. Evidence suggests that discrete
 breaks in saving occurred during 1972-74 and again during the mid 1980s.
 And, when breaks are accounted for, it is found that rises (falls) in
 saving anticipate falls (rises) in output, suggesting that people use
 savings to help smooth consumption over time, consistent with the PIH. 
Journal: Applied Economics 
Pages: 989-999 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326381 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326381 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:989-999




Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Argimon 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Argimon 
Author-Name: Jose Gonzalez-Paramo 
Author-X-Name-First: Jose 
Author-X-Name-Last: Gonzalez-Paramo 
Author-Name: Jose Roldan 
Author-X-Name-First: Jose 
Author-X-Name-Last: Roldan 
Title: Evidence of public spending crowding-out from a panel of OECD countries 
Abstract:
  The empirical relationship between government spending and private
 investment is examined, using a panel of 14 OECD countries. The evidence
 suggests the existence of a significant crowding-in effect of private
 investment by public investment, through the positive impact of
 infrastructure on private investment productivity. Moreover, government
 consumption appears to crowd out private investment. The implications of
 these results are of foremost importance when it comes to fiscal
 consolidation. Deficit reductions engineered through cuts in public
 investment could severely impinge on private capital accumulation and
 growth prospects. 
Journal: Applied Economics 
Pages: 1001-1010 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326390 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326390 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1001-1010




Template-Type: ReDIF-Article 1.0
Author-Name: Suk-Joong Kim 
Author-X-Name-First: Suk-Joong 
Author-X-Name-Last: Kim 
Title: Testing the rationality of exchange rate and interest rate expectations: an empirical study of Australian survey-based expectations 
Abstract:
  This paper examines the rationality of the Australian survey-based
 expectations, 1- and 4-week-ahead $US/$A exchange rate and 2 and
 4-week-ahead Australian 90-day bank bill and 10-year bond rates. The
 actual and expected variables are found to be cointegrated, indicating
 that the expected future values and the future realizations of the
 exchange rate and interest rates have long-run equilibrium relationships.
 OLS estimations with the Newey - West corrections are employed for testing
 the unbiased expectations hypothesis (UEH) where the frequency of the
 expectations data is finer than the forecast horizons, and the
 exponential-GARCH models that take into account the time-varying nature of
 the forecasterror variance are employed for testing the weak rational
 expectations hypothesis (WREH). The evidence shows that the WREH could not
 be rejected in any case, except for the two-week-ahead forecast of the
 90-day interest rate, which indicates that all available information is
 used at the time of forming relevant forecasts. The UEH, however, is
 decisively rejected in all cases. This indicates that strong rationality,
 which requires both UEH and WREH, is rejected in all cases. It is
 concluded that forecasters are weakly rational; however, their forecasts
 are not unbiased because the data available to them when forming
 expectations are inadequate. 
Journal: Applied Economics 
Pages: 1011-1022 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326408 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326408 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1011-1022




Template-Type: ReDIF-Article 1.0
Author-Name: Costas Kanellopoulos 
Author-X-Name-First: Costas 
Author-X-Name-Last: Kanellopoulos 
Title: Public-private wage differentials in Greece 
Abstract:
  Separate earnings functions for public and private sector by gender are
 estimated for Greece with appropriate correction for selectivity bias,
 using Family Expenditure Survey data for 1988. Then a comparison of the
 average pay, that would be received by public and private sector employees
 if they were paid according to the same pay structure, is undertaken. The
 empirical evidence suggests that, while the observed pay advantage of male
 public sector employees is rather explained by higher qualifications, in
 the case of women qualification differences partly explains the observed
 public-private wage differential. 
Journal: Applied Economics 
Pages: 1023-1032 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326417 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326417 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1023-1032




Template-Type: ReDIF-Article 1.0
Author-Name: Kwabena Gyimah-Brempong 
Author-X-Name-First: Kwabena 
Author-X-Name-Last: Gyimah-Brempong 
Author-Name: Rudy Fichtenbaum 
Author-X-Name-First: Rudy 
Author-X-Name-Last: Fichtenbaum 
Title: Racial wage gaps and differences in human capital 
Abstract:
  This paper uses the Cotton/Neumark decomposition methodology and 1990 CPS
 data to investigate the relative importance of labour market structure and
 human capital in explaining the white male/Asian, white male/black, white
 male/Hispanic wage gaps. We find that labour market structure is more
 important than human capital in explaining the white minority wage gaps.
 Moreover, most of the labour market structural effects are due to
 differential returns to white structural characteristics. Our result is
 robust to the specification of human capital. Our results contradict the
 results of research that indicate that the white/minority wage gaps can be
 explained solely by differences in the endowment of human capital. Our
 results have implications for narrowing the wage gaps between whites and
 racial minorities. 
Journal: Applied Economics 
Pages: 1033-1044 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326426 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326426 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1033-1044




Template-Type: ReDIF-Article 1.0
Author-Name: William Crowder 
Author-X-Name-First: William 
Author-X-Name-Last: Crowder 
Author-Name: Daniel Himarios 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Himarios 
Title: Balanced growth and public capital: an empirical analysis 
Abstract:
  The balanced growth restrictions implied by the neoclassical growth model
 imply that output, the private capital stock and the public capital stock
 share the same stochastic trend. We analyse the postwar US data on real
 output, real private capital stock and real public capital stock and find
 that the balanced growth restrictions cannot be rejected by the data.
 Removing the common stochastic trend from each series allows the
 estimation of output elasticities that is free from the spurious
 regression problem. The results support Aschauer's (1989) claim that, at
 the margin, public capital is more productive than private capital. 
Journal: Applied Economics 
Pages: 1045-1053 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326435 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326435 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1045-1053




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Hsing 
Author-X-Name-First: Yu 
Author-X-Name-Last: Hsing 
Title: The Fisher hypothesis revisited: new evidence 
Abstract:
  The nominal interest rate is examined with the IS-LM model incorporating
 the Fisher hypothesis. Eight different interest rates are considered for
 different sample periods ending in 1993. When the Livingston survey data
 are used, the coefficients for the expected inflation rate, real quantity
 of money and government spending are significant in most cases. When the
 adaptive expectations model is applied, the coefficients for real quantity
 of money and government spending are insignificant in most cases. The
 Fisher hypothesis only holds for the federal funds rate or the AAA bond
 rate. The linear-form regression can be rejected at the 1% level in favour
 of the Box-Cox general functional form. 
Journal: Applied Economics 
Pages: 1055-1059 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326444 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1055-1059




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Hanson 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Hanson 
Author-Name: Adam Rose 
Author-X-Name-First: Adam 
Author-X-Name-Last: Rose 
Title: Factor productivity and income inequality: a general equilibrium analysis 
Abstract:
  Economic growth over the past two decades has failed to reduce income
 inequality. We contend that major reasons for this are the slowdown and
 bias in technological change (productivity growth). Given the complexity
 of the many interactions that take place, this phenomenon is best
 addressed in a general equilibrium context. For this purpose, we have
 developed a computable general equilibrium (CGE) model with advanced
 features relating to income distribution. We perform a series of
 simulations based on recent overall productivity changes, but under
 various forms of technological change bias, factor mobility, and
 government budgetary balance. We find the labour-augmenting technological
 change cases to be most consistent with recent experience. 
Journal: Applied Economics 
Pages: 1061-1071 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326453 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326453 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1061-1071




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Michael Simpson 
Author-X-Name-First: Michael 
Author-X-Name-Last: Simpson 
Title: Residential broadband subscription demand: an econometric analysis of Australian choice experiment data 
Abstract:
  The recent roll-out of fibre-optic cable suggests that the willingness of
 households in passed communities to subscribe to networked services is an
 important issue. This paper studies the determination of the demand for
 network subscription. Through a discrete choice model the effect of
 installation and rental price on the likelihood of subscription is
 analysed. The logit regression is based on choice experiment (stated
 preference) subscription data obtained from a national survey of
 households. Limitations of this preliminary work and suggestions for
 future research are discussed. 
Journal: Applied Economics 
Pages: 1073-1078 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326462 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1073-1078




Template-Type: ReDIF-Article 1.0
Author-Name: Anne Winkler 
Author-X-Name-First: Anne 
Author-X-Name-Last: Winkler 
Title: Economic decision-making by cohabitors: findings regarding income pooling 
Abstract:
  Cohabitation rates are increasing in the US but little is known about how
 cohabitors make economic decisions. For instance, do female cohabitors
 treat their male partner's income as shared household income when choosing
 hours worked? Does income sharing differ among types of cohabitors? This
 study investigates whether or not cohabitors pool income by drawing
 inferences from a generalized model of labour supply. The empirical work
 uses data from the 1993 Current Population Survey and the 1987 National
 Survey of Families and Households. These data sets provide evidence that
 cohabitors, taken as a group, do not pool all income. However, there is
 also evidence that cohabitors are not homogeneous in their behaviour;
 income pooling is not rejected for cohabitors in longer-term relationships
 and for those who have a biological child together. 
Journal: Applied Economics 
Pages: 1079-1090 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326471 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326471 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1079-1090




Template-Type: ReDIF-Article 1.0
Author-Name: Werner Smolny 
Author-X-Name-First: Werner 
Author-X-Name-Last: Smolny 
Title: Dynamic factor demand in a rationing model 
Abstract:
  In this paper, a dynamic decision model of the firm with a delayed
 adjustment of employment and investment is developed. Special attention is
 devoted to dynamic inefficiencies, i.e. underutilizations of the capital
 stock and labour hoarding. Market disequilibrium is introduced by allowing
 for a sluggish adjustment of wages and prices. The model of the firm is
 complemented by explicit aggregation, and the aggregate model is estimated
 for the FRG for the period 1960 to 1989. The empirical results reveal that
 dynamic adjustment constraints for employment and capital contributed to
 the persistence of unemployment in Germany in the 1980s. 
Journal: Applied Economics 
Pages: 1091-1101 
Issue: 8 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326480 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326480 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1091-1101




Template-Type: ReDIF-Article 1.0
Author-Name: Shigeyuki Hamori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Hamori 
Author-Name: Shin-Ichi Kitasaka 
Author-X-Name-First: Shin-Ichi 
Author-X-Name-Last: Kitasaka 
Title: The characteristics of the business cycle in Japan 
Abstract:
  The present study examines the characteristics of the business cycle in
 the Japanese economy by using the Hodrick-Prescot filter, concluding that
 a change in consumption is relatively large and that labour input is ficed
 in Japan. Fluctuating consumption supports a permanent income hypothesis
 in Japan. The fixed labour input is thought to reflect the characteritics
 of the Japanese economy, such as a fixed employment custom like the
 'lifetime employment system'. This paper presents a simple-stuctured model
 of the real business cycle(RBC) and examines its validity by simulation.
 It may be concluded that even a simple model with a time-separable
 utitlity function and a fixed capital-labour ratio can reproduce the
 movement of the Japanese economy. 
Journal: Applied Economics 
Pages: 1105-1113 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1105-1113




Template-Type: ReDIF-Article 1.0
Author-Name: Terry Baker 
Author-X-Name-First: Terry 
Author-X-Name-Last: Baker 
Title: Quality-adjusted price indexes for portable computers 
Abstract:
  Constructing an accurate price index requires controlling for changes in
 quality. The potential for bias is especially problemaic for rapidly
 changing goods such as computers. This study extends previous research on
 quality-adjusted, or hedonic, price indexes for computers by investigating
 price and quality changes in portable models. In particular, recent
 research by Nelson et al.(1994) and Berndt et al.(1995) on desktop and
 portable computers is extended. After adjusting for quality changes, price
 indexes in this tudy exhibit average declines of 26% to 33% per year. The
 magnitude of quality-adjusted price changes is consistent with these
 auhors and with the extensive line of research on quality-adjusted price
 indexes for computers of various types. The results emphasize the extent
 of potential bias in estimating price level changes if technological
 advancement is ignored. Significant potential for bias implies the need to
 account properly for changes in quality in consructing indexes for both
 individual product categories and for broad economic indicators. 
Journal: Applied Economics 
Pages: 1115-1123 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000002 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1115-1123




Template-Type: ReDIF-Article 1.0
Author-Name: Lee Mobley 
Author-X-Name-First: Lee 
Author-X-Name-Last: Mobley 
Author-Name: W. David Bradford 
Author-X-Name-First: W. David 
Author-X-Name-Last: Bradford 
Title: Behavioural differences among hospitals: it is ownership, or location? 
Abstract:
  By about 1988, the consensus among leading health economists was that no
 meaningful differences existed among hospitals of differences owernership
 form, and this position was embraced by the Antitrust Division of the US
 Department of Justice. But behavioural differences among hospitals of
 different among hospitals of different owernership has continued to be a
 matter of both academic and judicial interest. Recent empirical studies
 have concluded that real differences do exist, while many earlier studies
 reached the opposite conclusion. This contradiction in finding over time,
 as competition intensified, is exactly opposite to what expense-preference
 theory would predict. We examine this apparent paradox, using a very
 general test of behavioural differences by hospital ownership. We find
 that the omission of location-specific variables can lead to biased
 estimates of ownership effects, and that no significant behavioural
 differences exist among private California hospitals in 1986-90, when this
 source of ownership endogeneity is eliminated. 
Journal: Applied Economics 
Pages: 1125-1138 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000003 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1125-1138




Template-Type: ReDIF-Article 1.0
Author-Name: Kui-Wai Li 
Author-X-Name-First: Kui-Wai 
Author-X-Name-Last: Li 
Title: Money and monetization in China's economic reform 
Abstract:
  In addition to privatization marketization, liberalization and
 pragmatization, monetization has been argued as the fifth feature in
 china's economic reform. If monetization is taken to mean a process
 through which variations in money supply or interest rate are to affect
 macroeconomic variables, the construction of four causality relationships
 between interest rate and investment, and money and national income do not
 support the evidence of such a process in China between the late 1970s and
 early 1990s. 
Journal: Applied Economics 
Pages: 1139-1146 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000004 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1139-1146




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani 
Author-X-Name-First: Hamid 
Author-X-Name-Last: Baghestani 
Title: Purchasing power parity in the presence of foreign exchange black markets: the case of India 
Abstract:
  The empirical validity of $b;PPP$eb; as a long-run constraint between
 India and the US is examined in the preesence of foreign exchange black
 markets. In a triariate model, the official exchange rate is found to be
 coinergrated with both the price ratio and the black market exchange rate.
 Both the official exchange rate and price ratio respond to correct
 short-run departures from $b;PPP$eb;. Also, both the official and the
 black market exchange rates respond to correct departures from their own
 equilibrium relation. The two sources of endogeneity in the official rate
 follow rate follow as Indian authorities aimed to stabilize domestic
 prices and reduce uncertainty about the dollar price of rupees. 
Journal: Applied Economics 
Pages: 1147-1154 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000005 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1147-1154




Template-Type: ReDIF-Article 1.0
Author-Name: Daniela De Angelis 
Author-X-Name-First: Daniela 
Author-X-Name-Last: De Angelis 
Author-Name: Stefano Fachin 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Fachin 
Author-Name: G. Alastair Young 
Author-X-Name-First: G. Alastair 
Author-X-Name-Last: Young 
Title: Bootstrapping unit root tests 
Abstract:
  Unit root tests have been known for a long time to suffer from a variety
 of problems. Considering that simulation methods are obvious candidates
 for solving some of these problems, the aim of this paper is to assess the
 performance of bootstrap tests of the unit root hypothesis of the
 Dickey-Fuller type. The results obtained show that boostrap tests have
 empirical sizes very close to the nominal ones and deliver rejection rates
 generally at least as high as those obtained using simulated critical
 points, and are therefore a promising alternative to the latter. The
 applications sto non-standard problems such as structural stability
 analysis appear to be especially promising. 
Journal: Applied Economics 
Pages: 1155-1161 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000006 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1155-1161




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Clements 
Author-Name: Wana Yang 
Author-X-Name-First: Wana 
Author-X-Name-Last: Yang 
Author-Name: Simon Zheng 
Author-X-Name-First: Simon 
Author-X-Name-Last: Zheng 
Title: Is utility additive? The case of alcohol 
Abstract:
  The hypothesis of additive utility (or preference independence) is often
 applied to the demand for broad aggregates. Recent testing provides some
 evidence favourable to the hypothesis, thus overturning the older results
 based on the standard asymptotic tests which are seriously biased against
 the null in small samples. Using data for seven countries and a variety of
 tests, this paper shows that preference independence also cannot be
 rejected for more narrowly defined commodities - beer, wine and spirits.
 The implications of the results for efficient taxation of alcoholic
 beverages are also explored. 
Journal: Applied Economics 
Pages: 1163-1167 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000007 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1163-1167




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Seninger 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Seninger 
Title: Jobless spells and re-employment wages 
Abstract:
  Many studies of job loss attribute the earnings losses associated with
 layoffs to the loss of job, occupation, and industry-specific human
 capital. This paper estimates the effect of jobless spells on post-layoff
 wages using data from the 1984 Panel of Survey on Income Participation for
 a sample of adult, white male workers who were permanently laid off
 between 1974 and 1984. The estimated impact of jobless spells on starting
 wages and survey date wages, several years after re-employment, are
 controlled for separations, layoffs, and quits and for individual and job
 characteristics. The estimates show that jobless spell durations reduce
 starting wages. Wage growth in the new job is lower for workers who
 experience long spell durations, a result that suggests acceptance of jobs
 which are poor matches compared to other workers who spend less time out
 of work following a layoff. The findings support labour force policies
 which minimize the amount of time a person is out of work. 
Journal: Applied Economics 
Pages: 1169-1177 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000008 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1169-1177




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Baye 
Author-X-Name-First: Michael 
Author-X-Name-Last: Baye 
Author-Name: Robert Maness 
Author-X-Name-First: Robert 
Author-X-Name-Last: Maness 
Author-Name: Steven Wiggins 
Author-X-Name-First: Steven 
Author-X-Name-Last: Wiggins 
Title: Demand systems and the true subindex of the cost of living for pharmaceuticals 
Abstract:
  This paper investigates the demand for prescription pharmaceuticals at
 the retail level. We use complete demand systems to investigate elasticity
 for major classes of pharmaceuticals. We estimate both a regular and an
 inverse demand system using a differential version of the Rotterdam model.
 We find that both systems yield negative, and statistically significant
 own-price elasticities. The results indicate that pharmaceutical demand
 curves are not perfectly inelastic as some industry commentators suggest.
 We use the results of the complete demand system and a variant of a
 formula developed by Balk (1990) to derive a cost-of-living subindex for
 retail pharmaceuticals. We find that retail pharmaceutical prices using
 our index rise faster than wholesale prices, calculated either by the BLS
 or by the methods developed by Berndt et al.(1993). 
Journal: Applied Economics 
Pages: 1179-1190 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000009 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1179-1190




Template-Type: ReDIF-Article 1.0
Author-Name: Mary Bange 
Author-X-Name-First: Mary 
Author-X-Name-Last: Bange 
Author-Name: William Bernhard 
Author-X-Name-First: William 
Author-X-Name-Last: Bernhard 
Author-Name: Jim Granato 
Author-X-Name-First: Jim 
Author-X-Name-Last: Granato 
Author-Name: Lauren Jones 
Author-X-Name-First: Lauren 
Author-X-Name-Last: Jones 
Title: The effect of inflation on the natural rate of output: experimental evidence 
Abstract:
  We examine the inflation-output relationship in the USA for the period
 1955-90. We start by replicating Smyth (1992) and subjecting his estimates
 to a series of diagnostic tests. The model is shown to satisfy conditions
 for valid inference (weak exogeneity) and policy analysis
 (super-exogeneity) (Engle, Hendry and Richard, 1983). These robustness
 checks allow us to study the out-of-sample consequences of the point
 estimates for various levels of inflation. One central experimental result
 is that for inflation rates exceeding 4% the natural rate of output is
 reduced to such an extent that it contributes to a reduction in the growth
 rate of real GNP that is below historical trend (3.1% in our sample). 
Journal: Applied Economics 
Pages: 1191-1199 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1191-1199




Template-Type: ReDIF-Article 1.0
Author-Name: Eu Chye Tan 
Author-X-Name-First: Eu Chye 
Author-X-Name-Last: Tan 
Title: Money demand amid financial sector developments in Malaysia 
Abstract:
  Both long and short run real money demand functions of Malaysia with
 money variously defined as M0, M1 and M2 have been estimated using the
 Johansen cointegration technique and the general-to-specific approach
 respectively. The period under review is 1973Q1-1991Q4. While
 liberalization and innovation in the Malaysian financial system have not
 ruled out the existence of stable long run money demand relationships as
 attested to by the presence of cointegrating vectors, they have rendered
 short run relationships unstable. Hence, it may not be appropriate for one
 to conclude that monetary policy efficacies have been sacrosanct to the
 financial liberalization and innovation process on the basis of
 cointegrating relationships. This is especially true as monetary policy is
 essentially a short run stabilization policy aimed at ironing out undue
 macroeconomic fluctuations. This prompted us to re-estimate short run
 money demand functions over more recent periods in order to boost the
 policy relevance of the estimated parameters. 
Journal: Applied Economics 
Pages: 1201-1215 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000011 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1201-1215




Template-Type: ReDIF-Article 1.0
Author-Name: Andre Croppenstedt 
Author-X-Name-First: Andre 
Author-X-Name-Last: Croppenstedt 
Author-Name: Mulat Demeke 
Author-X-Name-First: Mulat 
Author-X-Name-Last: Demeke 
Title: An empirical study of cereal crop production and technical efficiency of private farmers in Ethiopia: a mixed fixed-random coefficients approach 
Abstract:
  In this paper we use a fixed-random coefficients regression model to
 analyse data for cereal growing small-scale farmers in efficiency. Results
 show that land size is a major constraint and only small changes in
 cultivated area and land quality yield relatively high increments to
 output. Larger farms are relatively less productive, everything else being
 equal. Human capital in the form of literacy and experience are found to
 affect productivity positively. Our findings show a high degree of
 farm-specific technical inefficiency. With regard to the inputs we find
 high degrees of input-specific technical inefficiency, especially so for
 labour and fertilizer. The age structure of the household, environmental
 factors and education are found to be weakly correlated with efficiency.
 Furthermore, sharecropping is found to be positively correlated with
 technical efficiency. 
Journal: Applied Economics 
Pages: 1217-1226 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000012 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1217-1226




Template-Type: ReDIF-Article 1.0
Author-Name: Keith Hartley 
Author-X-Name-First: Keith 
Author-X-Name-Last: Hartley 
Author-Name: Richard White 
Author-X-Name-First: Richard 
Author-X-Name-Last: White 
Author-Name: David Chaundy 
Author-X-Name-First: David 
Author-X-Name-Last: Chaundy 
Title: Government and industry performance: a comparative study 
Abstract:
  A number of UK industries are heavily dependent on the government as a
 major purchaser. The Ministry of Defence and the National Health Service
 are essentially monopsonists for the industries supplying them. As a
 monopsonist, government can influence the size, structure, conduct and
 performance of the industries. This paper examines wheather industries
 relying heavily on government purchases will differ in their structure,
 conduct and performance-characteristics and whether dependence on
 goverment can have favourable or adverse effects on industry performance.
 The hypothesis is tested by comparing the performance of industries
 dependent on government purchasing - defence, pharmaceuticals and medical
 equipment - with a control group of other non-dependent industries. 
Journal: Applied Economics 
Pages: 1227-1237 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000013 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1227-1237




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Johnson 
Author-X-Name-First: Paul 
Author-X-Name-Last: Johnson 
Title: Estimation of the specification error in the expectations theory of the term structure 
Abstract:
  This paper asks, 'how false is the expectations theory of the term
 structure?'. Most previous work has asked, 'is the expectations theory
 true?' and finds that it is not. The goal here is to gauge the economic
 importance of these answers in the negative by estimating the
 specification error in the expectations theory. The variance of the
 estimated specification error (suitably normalized) provides a metric for
 assessing the validity of the model. I find that, while the expectations
 theory can be rejected, the importance of the rejection is much less than
 that implied by previous studies, so that the theory may still be a useful
 tool for understanding the relationships between interest rates at
 different maturities. 
Journal: Applied Economics 
Pages: 1239-1247 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000014 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1239-1247




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Witt 
Author-X-Name-First: Robert 
Author-X-Name-Last: Witt 
Title: The demand for car fuel efficiency: some evidence for the UK 
Abstract:
  This paper uses the Atkinson-Halvorsen (1984) hedonic method to estimate
 the effect of petrol price changes on fuel efficiency and other attributes
 using data for new cars in the UK. In contrast to Atkinson and Halvorsen,
 the estimated long-run petrol price elasticity of demand for fuel
 efficiency is very small. The empirical results imply that the adjustment
 process within the new car market permits little substitution for more
 fuel efficient cars in response to petrol price changes. 
Journal: Applied Economics 
Pages: 1249-1254 
Issue: 9 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000015 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1249-1254




Template-Type: ReDIF-Article 1.0
Author-Name: Wing-Fai Leung 
Author-X-Name-First: Wing-Fai 
Author-X-Name-Last: Leung 
Title: The duration of international joint ventures an foreign wholly-owned subsidiaries 
Abstract:
  An international joint venture is formed when the partners contribute
 different benefits to the venture. Each party learns from the others
 through the joint venture. However, the literature suggests that joint
 ventures are unstable. So it is hypothesized that, on average, an
 international joint venture will have a shorter duration than a foreign
 wholly-owned subsidiary. Data on US foreign direct investment (FDI) abroad
 and FDI in the United States are applied to test the instability of joint
 ventures. The proportional hazards model is applied while exponential
 distribution and Weibull distribution are used to cross-check the results.
 On the whole, the results are consistent with the hypothesis. In
 particular, the two types of US affiliates are significantly different in
 duration although the support for the hypothesis from FDI in the United
 States is weak. 
Journal: Applied Economics 
Pages: 1255-1269 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000016 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1255-1269




Template-Type: ReDIF-Article 1.0
Author-Name: Yih-Luan Chyi 
Author-X-Name-First: Yih-Luan 
Author-X-Name-Last: Chyi 
Author-Name: Chao-Hsi Huang 
Author-X-Name-First: Chao-Hsi 
Author-X-Name-Last: Huang 
Title: An empirical study of the 'rule of thumb' consumption model in five East Asian countries 
Abstract:
  We investigate Campbell and Mankiw's 'rule of thumb' consumption model
 using data from five East Asian countries. We find that the fraction of
 income attributed to the 'rule of thumb' consumers are generally
 substantial for these countries. In particular, the fractions for them are
 generally higher than those of OECD countries found in previous studies.
 Furthermore, the estimates of the fractions are robust to variant
 specifications of the 'rule of thumb' consumption model. These results are
 favourable to he 'liquidity constraint' justification of the 'rule of
 thump' consumption model. 
Journal: Applied Economics 
Pages: 1271-1282 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000017 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1271-1282




Template-Type: ReDIF-Article 1.0
Author-Name: Jon Vilasuso 
Author-X-Name-First: Jon 
Author-X-Name-Last: Vilasuso 
Title: The relationship between cash flow and investment in the United States at business cycle frequencies 
Abstract:
Journal: Applied Economics 
Pages: 1283-1293 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000018 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1283-1293




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cassou 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cassou 
Title: The link between tax rates and foreign direct investment 
Abstract:
  This paper investigates the impact of tax policy on foreign direct
 investment flows between the US and other countries using a panel data
 empirical approach. Using panel data is an attractive alternative to using
 single time series data because it provides greater statistical power and
 offers greater flexibility in terms of explanatory variables. This study
 finds many significant factors influencing the transfer of funds component
 of foreign direct investment. Most noteworthy is that, in addition to host
 and home country corporate tax rates having a significant effect on
 investment flows, the host and home country income tax rates are also
 significant. 
Journal: Applied Economics 
Pages: 1295-1301 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000019 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1295-1301




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaodi Xie 
Author-X-Name-First: Xiaodi 
Author-X-Name-Last: Xie 
Title: Children and female labour supply behaviour 
Abstract:
  Using the generalized residual method, this paper investigates the
 assumption that children are exogenous in the labour supply equations of
 married women via alternative regression specifications for the children
 variables. The empirical results of this paper suggest that children are
 endogenous to the participation decision and likely to be exogenous to the
 hours of work decision for married women. Children under age six have a
 dramatic negative impact on the labour force participation of married
 women. These findings support the implication of the literature relating
 fixed costs of employment, including child care costs, to female labour
 supply. 
Journal: Applied Economics 
Pages: 1303-1310 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1303-1310




Template-Type: ReDIF-Article 1.0
Author-Name: Atanu Saha 
Author-X-Name-First: Atanu 
Author-X-Name-Last: Saha 
Author-Name: Oral Capps 
Author-X-Name-First: Oral 
Author-X-Name-Last: Capps 
Author-Name: Patrick Byrne 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Byrne 
Title: Calculating marginal effects in models for zero expenditures in household budgets using a Heckman-type correction 
Abstract:
  Using the Heckamn approach, either in single-equation or multi-equation
 settings, general expressions are derived for calculating marginal effects
 and elasticities. In the conventional calculation of marginal effects,
 terms related to the change in the inverse of Mills ratio are omitted.
 Using data from the 19877-88 Nationwide Food Consumption Survey, we
 calculate income and household size elasticities for 12 food commodities.
 We compare the magnitudes and signs of the elasticities using the
 conventional expressions of marginal effects and our derived expressions.
 Bottomline, sizeable differences, especially in single-equation
 applications, can occur in calculating marginal effects if one fails to
 account for changes in the inverse of the Mills ratio. 
Journal: Applied Economics 
Pages: 1311-1316 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1311-1316




Template-Type: ReDIF-Article 1.0
Author-Name: Tetsuji Yamada 
Author-X-Name-First: Tetsuji 
Author-X-Name-Last: Yamada 
Author-Name: Tadashi Yamada 
Author-X-Name-First: Tadashi 
Author-X-Name-Last: Yamada 
Author-Name: Gordon Liu 
Author-X-Name-First: Gordon 
Author-X-Name-Last: Liu 
Title: Value-added productivity of manufacturing industries in Japan 
Abstract:
Journal: Applied Economics 
Pages: 1317-1324 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000022 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1317-1324




Template-Type: ReDIF-Article 1.0
Author-Name: M. O. Odedokun 
Author-X-Name-First: M. O. 
Author-X-Name-Last: Odedokun 
Title: Relative effects of public versus private investment spending on economic efficiency and growth in developing countries 
Abstract:
  This study investigates the initial and long-run effects of public
 investment expenditure on economic growth, especially as compared with
 private investment. Annual data over 1970-90 for 48 developing countries
 form the basis of the empirical analysis. Our findings suggest that
 infrastructural public investment facilitates private investment,
 especially in the long-run. It also promotes economic growth and
 efficiency whereas non-infrastructural investment does the reverse. Also,
 long-term effects of public investment tend to be much more positive than
 short-term ones on growth; efficiency and private investments 
Journal: Applied Economics 
Pages: 1325-1336 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000023 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1325-1336




Template-Type: ReDIF-Article 1.0
Author-Name: H. Naci Mocan 
Author-X-Name-First: H. Naci 
Author-X-Name-Last: Mocan 
Author-Name: W. James Smith 
Author-X-Name-First: W. James 
Author-X-Name-Last: Smith 
Author-Name: William Tevebaugh 
Author-X-Name-First: William 
Author-X-Name-Last: Tevebaugh 
Title: Credit rationing, deregulation and race in mortgage lending in the United States: 1960-90 
Abstract:
  This paper examines discrimination in mortgage lending in teh United
 States over three decades in 1960 to 1990. We focus on whether
 deregulation, increased Federal oversight and enhanced competition reduce
 discrimination as becker's theory suggests (Becker, 1971). We find that
 discrimination is evident over the three decades taken together, is
 prevalent from 1960 to 1980, but is absent in the data from 1980 to 1990.
 This finding strongly supports Becker' hypothesis. Preferences for
 discrimination appear to be offset by the higher costs fo engaging in them
 after 1980. 
Journal: Applied Economics 
Pages: 1337-1342 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000024 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1337-1342




Template-Type: ReDIF-Article 1.0
Author-Name: H. Sonmez Atesoglu 
Author-X-Name-First: H. Sonmez 
Author-X-Name-Last: Atesoglu 
Author-Name: Donald Dutkowsky 
Author-X-Name-First: Donald 
Author-X-Name-Last: Dutkowsky 
Title: On the dynamics of balance of payments constrained growth 
Abstract:
  This paper assesses the dynamic behaviour of policies for resolving trade
 deficits. We extend the Thirlwall-based model by introducing an equation
 for setting current account policy. Steady-state solutions implying
 current account equilibrium emerge under autonomous spending contraction,
 exchange rate develuation, export expansion, and import reduction.
 Stability holds with plausible restrictions. simulations based upon the
 United States reveal that autonomous spending, import, and export policies
 behave similarly in correcting trade deficits. Exchange rate devaluation
 generates considerably slower adjustment. Corresponding output growth
 paths are also examined. The study formally incorporates dynamics into the
 Thirlwall approach for analysing balance of paymnets constrained growth. 
Journal: Applied Economics 
Pages: 1343-1351 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000025 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1343-1351




Template-Type: ReDIF-Article 1.0
Author-Name: Jong Park 
Author-X-Name-First: Jong 
Author-X-Name-Last: Park 
Author-Name: Penelope Prime 
Author-X-Name-First: Penelope 
Author-X-Name-Last: Prime 
Title: Export performance and growth in China: a cross-provincial analysis 
Abstract:
  The role of exports in economic growth continues to be debated and tested
 in the literature on trade an development. China is a new player in this
 debate with its rapid entry into international makrets. This paper extends
 some of the previous empirical studies on the relationship between exports
 and economic growth in order to assess to what extent China's remarkable
 export growth has contributed to the country's overall growth. The study
 utilizes data for 26 provinces between 1985 and 1993 in an
 export-augmented aggregate production function approach. The results of
 our study support the hypothesis that exports have contributed to the
 growthh of provincial incomes in China for the period examined with both
 the cross-sectional and pooled analyses, with the results being primarily
 determined by the coastal provinces compared with inland areas. 
Journal: Applied Economics 
Pages: 1353-1363 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1353-1363




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Benito 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: Benito 
Title: Divestment of foreign production operations 
Abstract:
  This study investigates some determinants fo the divestment of foreign
 manufacturing operations by Norwegian companies. To date, very few studies
 have taken a closer look at what might influence whether foreign
 subsidiaries are divested or not. Although foreign direct investment - in
 principle - represent long-term commitments to foreign manufacturing
 operations, divestments are in fact quite common. This study shows that
 more than half of a sample of foreig subsidiaries woned by Norwegian
 companies in 1982 wee divested within a period of ten years. The empirical
 findings indicate that foreign divestment is inversely related to economic
 growth in the host country, and that the propensity to divest is
 significantly higher for subsidiaries that had been acquired than for
 greenfield establishments. Also, related (horizontal) subsidiaries are
 less likely to be divested than unrelated (non-horizontal)subsidiaries. 
Journal: Applied Economics 
Pages: 1365-1378 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000027 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1365-1378




Template-Type: ReDIF-Article 1.0
Author-Name: Sara Connolly 
Author-X-Name-First: Sara 
Author-X-Name-Last: Connolly 
Title: A model of female labour supply in which supply is dependent upon the chances of finding a job 
Abstract:
  In this paper, we extend a model of female labour supply, by considering
 the impact of the local labour market. Thus, in our model, a woman
 supplies her labour if she has both made the decision to participate and
 found a job. This extension is of particular importance in times of high
 unemployment when discouraged worker effects will be at their strongest.
 We also consider the contribution of such a model to the debate concerning
 the labour supply of women married to men who are unemployed. 
Journal: Applied Economics 
Pages: 1379-1386 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000028 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000028 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1379-1386




Template-Type: ReDIF-Article 1.0
Author-Name: Satya Paul 
Author-X-Name-First: Satya 
Author-X-Name-Last: Paul 
Author-Name: Colm Kearney 
Author-X-Name-First: Colm 
Author-X-Name-Last: Kearney 
Author-Name: Kabir Chowdhury 
Author-X-Name-First: Kabir 
Author-X-Name-Last: Chowdhury 
Title: Inflation and economic growth: a multi-country empirical analysis 
Abstract:
  The world eocnomy is currently adjusting to a low inflation regime which
 has implicastions for the cross-country distribution of world growth
 opportunities. In contrast to previous related work which assumes
 unidirectional causality, this paper uses the Granger methodology to
 examine both the direction and pattern of causality between inflation and
 economic growth in 70 countries using annual data over the period 1960-89.
 Among the conclusions are that first, the relationship between inflation
 and growth is non-uniform across countries: 40% of countries studied
 reveal no causality, one-third exhibit unidirectional causality and about
 one-fifth of countries show bidirectional causality, second, a vast
 majority of countries which show either uni- or bi-directional causality
 beong to the industrial group, and third, the low world inflation regime
 will on balance redistribute real growth opportunities benefit away from
 the developing countries towards the industrialized countries. 
Journal: Applied Economics 
Pages: 1387-1401 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000029 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1387-1401




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Denny 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Denny 
Title: Productivity and trade unions in British manufacturing industry 1973-85 
Abstract:
  This paper uses panel data on british manufacturing industries between
 1973 and 1985 to examine the relationship between productivity and labour
 organization. It is shown that the relationship between unions and
 productivity levels is sensitive to the econometric specification. The
 evidence points to there being no relationship in the 1970s when unions
 were more popular and a negative relationship from 1979 onwards. We also
 find evidence that industrial concentration is associated with higher
 levels of productivity and this accounts for more of the productivity
 recovery after the recession in the early 1980s than the impact of trade
 unions. The recession itself is shown to have had an impact on subsequent
 productivity growth. We also suggest that the long run gains in
 productivity caused by the shakeout of 1980-81 may not have compensated
 for the loss in output at the time. 
Journal: Applied Economics 
Pages: 1403-1409 
Issue: 10 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000030 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1403-1409




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoming Li 
Author-X-Name-First: Xiaoming 
Author-X-Name-Last: Li 
Title: Consumption demand, saving behaviour and rational expectations: an application of disequilibrium modelling to China 1952-92 
Abstract:
  In explaining dramatic changes in Chinese household savings and money
 demand behaviour in the reform period, previous studies proposed and
 tested three different hypotheses. However, no effort has been made to
 distinguish quantitatively between forced and voluntary savings in terms
 of their quanta, reasons and effects; the role of rational expectations in
 determining household behaviour has not received proper attention; and a
 puzzle of high domestic savings ratio accompanied by low interest rates
 still remains to be solved. This paper adopts a disequilibrium framework
 capable of investigating these issues. Our research yields some
 interesting and important results. Its findings support the conjecture
 that both regime shifts and repressed inflation have contributed to the
 rapidly rising personal money balances during the reform period, with the
 former being a dominant factor. It is shown that household voluntary
 savings can be well explained by official interest rates; only forced
 savings and instantaneous excess demand matter in affecting market prices,
 and thus monetary overhang is not so unsettling as some economists would
 think; and expectations do play a certain role in influencing household
 savings behaviour. 
Journal: Applied Economics 
Pages: 1411-1424 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326246 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326246 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1411-1424




Template-Type: ReDIF-Article 1.0
Author-Name: David Parkin 
Author-X-Name-First: David 
Author-X-Name-Last: Parkin 
Author-Name: Bruce Hollingsworth 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Hollingsworth 
Title: Measuring production efficiency of acute hospitals in Scotland, 1991-94: validity issues in data envelopment analysis 
Abstract:
  Data Envelopment Analysis is a potentially useful technique for measuring
 production efficiency and is being increasingly applied to health care
 services, as with other areas. However, some fundamental concerns need to
 be addressed before Data Envelopment Analysis can be accepted widely as a
 routine tool. These include issues of validity and specification error.
 This paper suggests a broad framework for assessing validity, which should
 be developed further, and gives illustrative examples of the problems in a
 real application within health care. Data from 75 Scottish acute hospitals
 for three years from 1991-94 are analysed. Internal validity is assessed
 by examining the effect on the results obtained of the choice of inputs
 and outputs selected for analysis. External validity is assessed by
 examining differences in the results obtained from the data for each of
 the three years. In both cases, it is concluded that there is a disturbing
 lack of concordance between the different results obtained. Caution must
 therefore be exercised in using Data EnvelopmentAnalysis in the health
 sector and in looking at its results, particularly those from a single
 time period. 
Journal: Applied Economics 
Pages: 1425-1433 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326255 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326255 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1425-1433




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Viard 
Author-X-Name-First: Alan 
Author-X-Name-Last: Viard 
Title: How forecastable is consumption growth? New evidence on the Hall random walk hypothesis 
Abstract:
  I provide new evidence on the accuracy of the Hall random walk hypothesis
 that consumption growth is not predictable. Using 1971-94 US data, I find
 that consumption growth is substantially more predictable than previously
 believed. A regression of consumption growth on lagged nominal interest
 rate changes, lagged consumption growth and forecasts by Data Resources,
 Inc. yields an adjusted R-squared of 0.32. The empirical tests further
 suggest that excess sensitivity of consumption to current disposable
 income, rather than time-varying real interest rates or non-separable
 utility, is the most likely explanation for the predictability of
 consumption growth. 
Journal: Applied Economics 
Pages: 1435-1446 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326264 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326264 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1435-1446




Template-Type: ReDIF-Article 1.0
Author-Name: Ken Holden 
Author-X-Name-First: Ken 
Author-X-Name-Last: Holden 
Author-Name: John Thompson 
Author-X-Name-First: John 
Author-X-Name-Last: Thompson 
Title: Combining forecasts, encompassing and the properties of UK macroeconomic forecasts 
Abstract:
  The idea of combining forecasts is of great interest to forecasters and a
 linear combination of different forecasts can be more accurate than any
 individual forecast. For model builders, forecast encompassing is a way of
 checking whether any extra important information is contained in forecasts
 from rival models. Efficient forecasts have errors which are unrelated to
 any information available when they are formed. Combinations of forecasts,
 forecast encompassing and efficiency tests can all be achieved by a
 restricted or unrestricted regression of outcomes on the separate
 forecasts. This paper links these three approaches and examines the
 implications for recent UK annual forecasts. 
Journal: Applied Economics 
Pages: 1447-1458 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326273 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326273 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1447-1458




Template-Type: ReDIF-Article 1.0
Author-Name: Joao Ricardo Faria 
Author-X-Name-First: Joao Ricardo 
Author-X-Name-Last: Faria 
Author-Name: Francisco. Carneiro 
Author-X-Name-First: Francisco. 
Author-X-Name-Last: Carneiro 
Title: The indexation of wages and bonds in Brazil 
Abstract:
  This paper analyses the dynamic relationship between the degrees of
 indexation of wages and public bonds in Brazil. A simple model is
 constructed to show that both degrees of indexation are determined
 simultaneously. We apply cointegration techniques and estimate
 error-correction representations to assess the temporal causality between
 them. Our results provide empirical support for the existence of
 simultaneity in the degrees of indexation in Brazil in the period 1980-93. 
Journal: Applied Economics 
Pages: 1459-1464 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326282 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326282 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1459-1464




Template-Type: ReDIF-Article 1.0
Author-Name: Charlie Weir 
Author-X-Name-First: Charlie 
Author-X-Name-Last: Weir 
Title: Corporate governance, performance and take-overs: an empirical analysis of UK mergers 
Abstract:
  This paper analyses the relationship between the probability of being
 acquired, firm performance and governance structures. The acquired firms
 were all fully quoted on the London Stock Exchange and the acquisitions
 took place between 1990 and 1993. They were matched by a sample of
 non-acquired quoted companies. The sample was also analysed in terms of
 hostile and non-hostile acquisitions. It was found that the key governance
 characteristics which differentiated between acquired and nonacquired
 corporations related to the proportion of non-executive directors on the
 board and to whether or not the roles of chief executive officer and
 chairman were combined. It was also found that acquired firms were poor
 performers, which suggests that the internal governance structures had
 been ineffective. These results applied to hostile and non-hostile
 targets. The findings support the view that hostile acquisitions are
 disciplinary but cast doubt on the claim that non-hostile acquisitions are
 purely synergistic. The results also support the view that certain
 governance characteristics are effective substitutes for the take-over
 mechanism as a means of minimizing discretionary behaviour. 
Journal: Applied Economics 
Pages: 1465-1475 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326291 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326291 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1465-1475




Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Maria Caporale 
Author-X-Name-First: Guglielmo Maria 
Author-X-Name-Last: Caporale 
Title: Sectoral shocks and business cycles: a disaggregated analysis of output fluctuations in the UK 
Abstract:
  In this paper we first show that it is possible to modify linear real
 business cycle models to allow for disaggregate (industry-specific)
 factors in the generation of macroeconomic fluctuations. We then try to
 determine the relative importance of aggregate and sectoral shocks by
 doing principal components analysis on the residuals from a VAR of output
 growth rates in 19 UK industrial sectors. We find that a significant
 percentage of the innovations in sectoral output growths can be accounted
 for by a single unobserved component. However, since the model only sets
 an upper bound to the explanatory power of aggregate impulses, the
 importance of using sectoral data to extract additional information to
 bear on the analysis of economic fluctuations is confirmed by our
 findings. 
Journal: Applied Economics 
Pages: 1477-1482 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326309 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326309 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1477-1482




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Casler 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Casler 
Title: Applied production theory: explicit, flexible, and general functional forms 
Abstract:
  The problem of estimating elasticity values is considered using a general
 functional from for the growth rate of input demand. The general input
 growth equation holds for all functional forms, both flexible and
 inflexible; it is linear-in-parameters and easy to use in applied
 production studies. An empirical application compares the theoretical,
 computational, and predictive characteristics of the translog and general
 functional forms. 
Journal: Applied Economics 
Pages: 1483-1492 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326318 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326318 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1483-1492




Template-Type: ReDIF-Article 1.0
Author-Name: Christos Papahristodoulou 
Author-X-Name-First: Christos 
Author-X-Name-Last: Papahristodoulou 
Title: A DEA model to evaluate car efficiency 
Abstract:
  This paper evaluates the efficiency of personal cars by using the
 non-parametric data envelopment analysis (DEA) approach. Analysis and
 comparison is performed in a normative manner since all the economic and
 technical parameters used (four and ten respectively) are not explicitly
 weighted. The data set covers 121 different car models in 1997, as
 appeared in the German Auto Motor und Sport magazine. 
Journal: Applied Economics 
Pages: 1493-1508 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326327 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326327 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1493-1508




Template-Type: ReDIF-Article 1.0
Author-Name: Moosa Khan 
Author-X-Name-First: Moosa 
Author-X-Name-Last: Khan 
Author-Name: Matiur Rahman 
Author-X-Name-First: Matiur 
Author-X-Name-Last: Rahman 
Author-Name: Anisul Islam 
Author-X-Name-First: Anisul 
Author-X-Name-Last: Islam 
Title: Tariff cuts and US net potential benefits: the case of the US and Mexico 
Abstract:
  This paper seeks to investigate US net potential benefits of merchandise
 imports from Mexico under tariff reductions. It applies a partial
 equilibrium framework which is static and highly aggregative in nature.
 The results suggest that the magnitudes of US net potential benefits of
 tariff cuts on merchandise imports from Mexico are conditional upon
 periods of duration of unemployment, discount rates, price elasticities of
 supply and demand, and existing tariff situations (high or low). Hence,
 the findings of the paper suggest that the US potential benefits and costs
 of merchandise imports from Mexico under tariff cuts should be weighed
 quite carefully. 
Journal: Applied Economics 
Pages: 1509-1514 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326336 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326336 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1509-1514




Template-Type: ReDIF-Article 1.0
Author-Name: D. M. Nachane 
Author-X-Name-First: D. M. 
Author-X-Name-Last: Nachane 
Title: Purchasing power parity: an analysis based on the evolutionary spectrum 
Abstract:
  The bulk of the literature on the empirical validation of the purchasing
 power parity (PPP) has been based on cointegration, although on rare
 occasions band-spectrum analysis has also been used. The former is tied
 down to the use of 'notional' time in the analysis of systems away from
 equilibrium, and the latter is circumscribed by the Slutzky-Yule effect.
 Both these drawbacks are sought to be remedied in the present paper, which
 seeks to bring to bear upon the PPP a new approach derived from the
 concept of a time-varying spectrum. Both absolute and relative versions of
 the doctrine are tested for ten advanced economies over the post-1973
 period. Uniform rejection of the PPP occurs with the US $ as base, but
 with centring on the DM, the evidence seems to be supportive of the PPP
 (in its relative version) for three European countries. 
Journal: Applied Economics 
Pages: 1515-1524 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326345 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326345 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1515-1524




Template-Type: ReDIF-Article 1.0
Author-Name: Vei-Lin Chan 
Author-X-Name-First: Vei-Lin 
Author-X-Name-Last: Chan 
Author-Name: Sheng-Cheng Hu 
Author-X-Name-First: Sheng-Cheng 
Author-X-Name-Last: Hu 
Title: Financial liberalization and aggregate consumption: the evidence from Taiwan 
Abstract:
  This paper considers the effect of financial liberalization on aggregate
 consumption, with a special focus on Taiwan, which has sustained a high
 savings rate and a rapid rate of economic growth under financial dualism,
 but has undertaken financial liberalization since the 1980s, leading to an
 expansion of the formal financial sector. The paper finds that, because of
 an active informal financial sector, consumers in Taiwan are less credit
 constrained than in other developing countries. However, the expansion of
 the formal financial sector has contributed to some relaxation of consumer
 credit constraints and thereby changes in the income and interest
 elasticities of consumption. It also has brought about a higher
 consumption growth rate, offsetting at least partially the positive growth
 effect of financial liberalization, which helps improve the efficiency in
 finanacial intermediation. 
Journal: Applied Economics 
Pages: 1525-1535 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326354 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1525-1535




Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Cocco 
Author-X-Name-First: Angelo 
Author-X-Name-Last: Cocco 
Author-Name: J. C. H. Jones 
Author-X-Name-First: J. C. H. 
Author-X-Name-Last: Jones 
Title: On going south: the economics of survival and relocation of small market NHL franchises in Canada 
Abstract:
  This paper considers the issue of team viability and professional
 franchise relocation, a problem common to all major sports leagues in
 North America. Specifically, using the National Hockey League in the 1990s
 as the analytical vehicle, the proposition that the viability of Canadian
 Small Market Franchises (SMF) is in doubt because of a combination of
 inadequate revenue (due to the quality of their locations) and escalating
 salary cost, is examined. Using game by game data for the 1989/90 season,
 revenue, costs and profits by team were estimated and it was concluded
 that Canadian SMF are indeed an endangered species. Several alternatives
 which might rectify the problem are considered (revenue sharing, salary
 caps, public subsidy), but none are as attractive or as realistic as
 relocating south to US cities. The behaviour of SMF in the 1990s is
 consistent with this prognosis. 
Journal: Applied Economics 
Pages: 1537-1552 
Issue: 11 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/000368497326363 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1537-1552




Template-Type: ReDIF-Article 1.0
Author-Name: William Luksetich 
Author-X-Name-First: William 
Author-X-Name-Last: Luksetich 
Author-Name: Mark Partridge 
Author-X-Name-First: Mark 
Author-X-Name-Last: Partridge 
Title: Demand functions for museum services 
Abstract:
  Museums Worldwide are facing financial exigencies and are being forced to
 rely on earned income, including admission fees, to finance their
 activities. Using data from the 1989 Museum Surveywe estimate demand
 functions for seven types of museums in the United States. Previous
 empirial evidence on the effects of admission fees on museum attendance
 have either been anecdotal or case study in nature. This study presents
 the first general empirical evidence on factors influencing the demand for
 museum services. Our results provide evidence that the demand for museum
 services is price inelastic and that museum quality has important effects
 on museum demand. We also argue that out results indicate that the adverse
 effects of admission charges on attendance are small and relatively easy
 to alleviate. 
Journal: Applied Economics 
Pages: 1553-1559 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000031 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000031 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1553-1559




Template-Type: ReDIF-Article 1.0
Author-Name: A. J. Errington 
Author-X-Name-First: A. J. 
Author-X-Name-Last: Errington 
Author-Name: L. Harrison Mayfield 
Author-X-Name-First: L. Harrison 
Author-X-Name-Last: Mayfield 
Author-Name: Y. Khatri 
Author-X-Name-First: Y. 
Author-X-Name-Last: Khatri 
Author-Name: R. Townsend 
Author-X-Name-First: R. 
Author-X-Name-Last: Townsend 
Title: Estimating the price elasticity of demand for family and hired farm labour in England and Wales 
Abstract:
  The agricultural workforce in the UK has been declining since the middle
 of the last century. However, the different types of agricultural labour
 have been variously affected, and hence the composition of the
 agricultural workforce has been undergoing continuous change. These
 changes in the structure of the agricultural workforce have serious
 implications not only for the policy makers but also for farm workers and
 farm businesses and those that service their needs. The study compares and
 explores the own price elasticity of demand for two groups of agricultural
 labour - that of family and hired - to enable the effects of agricultural
 policy on the structure of the agricultural workforce in both the short
 and long run to be estimated. This was done using two different
 methodologies - single equation and duality based system models. The
 similarities in the resulting elasticities give confidence in the
 estimates. These estimates can be used to help forecast the future
 structure of the agricultural workforce. 
Journal: Applied Economics 
Pages: 1561-1574 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000032 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000032 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1561-1574




Template-Type: ReDIF-Article 1.0
Author-Name: Talan Iscan 
Author-X-Name-First: Talan 
Author-X-Name-Last: Iscan 
Title: Devaluations and aggregate output fluctuations: a random coefficient regression model for Mexico 
Abstract:
  The goal of this paper is to investigate whether nominal devaluations had
 real output growth effects in Mexico and, if so, to assess the
 significance and duration of such effects. A random coefficient regression
 model to evaluate the output growth effects of 1976, 1982 and 1986
 devaluations using sectoral data from 1970 to 1991 is specified and
 estimated. The results indicate unambiguous short-term contractionary
 effects of devaluations on non-agricultural output in Mexico. In addition,
 it is found that adjustments to imbalances in the external sector
 invariably came from temporary contractions in the aggregate output rather
 than significant resource reallocation from the non-tradable sector
 towards the tradable sector. Several transmission mechanisms that relate
 nominal exchange rate movements to real output fluctuations are also
 considered. 
Journal: Applied Economics 
Pages: 1575-1584 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000033 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000033 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1575-1584




Template-Type: ReDIF-Article 1.0
Author-Name: Wilko Letterie 
Author-X-Name-First: Wilko 
Author-X-Name-Last: Letterie 
Author-Name: Otto Swank 
Author-X-Name-First: Otto 
Author-X-Name-Last: Swank 
Title: Electoral and partisan cycles between US economic performance and presidential popularity: a comment on Stephen E. Haynes 
Abstract:
  In this paper we discuss a recent paper by Stephen E. Haynes in which he
 relates electoral cycles in political support to electoral cycles in
 economic variables. Haynes finds that the cycle in support for Republican
 presidents is explained by the cycle in economic variables, whereas the
 cycle in support for Democratic presidents is not. In our opinion this
 shortcoming is due to his specification of the popularity function. Haynes
 estimates a popularity function which incorporates the notion that voters
 reward the incumbent for favourable outcomes (score hypothesis). Our
 popularity function combines the score hypothesis and the notion that
 voters cast their ballots for the party that best fits the current
 economic situation (issue hypothesis). We show that the electoral cycle in
 popularity of both Republican and Democratic presidents is explained very
 well by the cycle in economic variables. 
Journal: Applied Economics 
Pages: 1585-1592 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000034 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1585-1592




Template-Type: ReDIF-Article 1.0
Author-Name: Atsuyuki Naka 
Author-X-Name-First: Atsuyuki 
Author-X-Name-Last: Naka 
Author-Name: David Tufte 
Author-X-Name-First: David 
Author-X-Name-Last: Tufte 
Title: Examining impulse response functions in cointegrated systems 
Abstract:
  A system of reduced forms with cointegrated variables may be estimated in
 two ways: as a vector autoregression in levels, or as a vector error
 correction model. The latter is a restricted version of the former. If
 there is cointegration, imposing this restriction will yield more
 efficient estimates. However, at short horizons, vector error correction
 estimates are known to perform poorly relative to those from a vector
 autoregression. We examine how this property affects impulse response
 functions. A Monte Carlo experiment, and an example, suggest that impulse
 response functions of the two models are similar at short horizons, but
 different at long horizons. This suggests that the loss of efficiency from
 vector autoregression estimation is not critical at the commonly used
 short horizon. Our results complement parallel arguments focusing on
 forecast errors made by Clements and Hendry (1995), Hoffman and Rasche
 (1996), and Lin and Tsay (1996). 
Journal: Applied Economics 
Pages: 1593-1603 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000035 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1593-1603




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Caudill 
Author-X-Name-First: Steven 
Author-X-Name-Last: Caudill 
Author-Name: Daniel Gropper 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Gropper 
Title: A quality-adjusted price index for mainframe computers 
Abstract:
Journal: Applied Economics 
Pages: 1605-1610 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000036 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000036 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1605-1610




Template-Type: ReDIF-Article 1.0
Author-Name: David Rosenbaum 
Author-X-Name-First: David 
Author-X-Name-Last: Rosenbaum 
Author-Name: Meng-Hua Ye 
Author-X-Name-First: Meng-Hua 
Author-X-Name-Last: Ye 
Title: Price discrimination and economics journals 
Abstract:
  An analysis of pricing by economics journal publishers shows that most
 publishers initially charge libraries and individual subscribers the same
 price. Over time, however, almost all eventually engage in price
 discrimination. The few publishers that never price-discriminate seem to
 be purchasing an explicit non-profit-maximizing pricing strategy. Once
 discrimination occurs, library prices rise faster than individual
 subscriber prices. These results are consistent with theoretical
 predictions. 
Journal: Applied Economics 
Pages: 1611-1618 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000037 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000037 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1611-1618




Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Marotta 
Author-X-Name-First: Giuseppe 
Author-X-Name-Last: Marotta 
Title: Does trade credit redistribution thwart monetary policy? Evidence from Italy 
Abstract:
  Italy is an ideal candidate for testing the credit view of the
 transmission mechanism because of a bank-centred financial structure, a
 sizeable trade debt, and an economy titled towards small firms. An
 empirical analysis of trade credit and debt on averaged panel data shows
 that small firms act as financially constrained and cycle-sensitive,
 whereas large ones aim at smoothing sales, adopt an integrated management
 of inventories and receivables and have a higher trade debt to purchases
 elasticity. On balance, the net trade credit channel does not, as implied
 by the credit view, shield small firms from a monetary squeeze. 
Journal: Applied Economics 
Pages: 1619-1629 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000038 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1619-1629




Template-Type: ReDIF-Article 1.0
Author-Name: Ron Cronovich 
Author-X-Name-First: Ron 
Author-X-Name-Last: Cronovich 
Author-Name: Rennae Daneshvary 
Author-X-Name-First: Rennae 
Author-X-Name-Last: Daneshvary 
Author-Name: R. Keith Schwer 
Author-X-Name-First: R. Keith 
Author-X-Name-Last: Schwer 
Title: The determinants of coupon usage 
Abstract:
  This paper uses a large sample of survey data to investigate the
 empirical determinants of coupon usage. The broad set of control variables
 allows for comparisons of the relative importance of individual
 determinants and groups of determinants. We find that the set of variables
 measuring consumer shopping habits and attitudes explains more of the
 variation in coupon usage across households than the group of
 socioeconomic and demographic variables. However, the latter variables are
 jointly significant, and their estimated coefficients have the expected
 signs. 
Journal: Applied Economics 
Pages: 1631-1641 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1631-1641




Template-Type: ReDIF-Article 1.0
Author-Name: X. M. Gao 
Author-X-Name-First: X. M. 
Author-X-Name-Last: Gao 
Author-Name: Timothy Richards 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Richards 
Author-Name: Albert Kagan 
Author-X-Name-First: Albert 
Author-X-Name-Last: Kagan 
Title: A latent variable model of consumer taste determination and taste change for complex carbohydrates 
Abstract:
  Despite evidence that aggregate consumption of complex carbohydrates has
 risen over the last decade, food consumption surveys suggest that fewer
 households are consuming less bread, pasta rice, potatoes and corn. This
 paper estimates systems of complex carbohydrae demand using
 cross-sectional data from 1977-78 and 1987-88 in order to explain this
 paradox. Changes in demand that are not explained by changes in prices or
 income are explained by variations in taste. Because tastes cannot be
 directly observed, the paper uses a multiple indicator and multiple cause
 (MIMIC) model to construct a suitable proxy variable. In the MIMIC
 approach, the 'indicators' are residuals from a household demand function
 that includes prices and incomes as explanatory variables, while household
 and demograhic proxies are 'cause' variables. The objectives in applying
 the MIMIC model are to determine the effect of consumer tastes on complex
 carbohydrate demand and, comparing cross-sectional survey data from two
 different periods, test the hypothesis that these tastes change over time.
 The data consist of US complex carbohydrate prices and expenditures, taken
 from the USDA Household Food Consumption Surveys in 1977-78 and 1987-88.
 The results show that structural changes in demand, or those that are not
 explained by changes in price, income, or the cause variables, led to an
 increase in complex carbohydrate demand of 5% from 1977-78 to 1987-88.
 However, changes in demand explained by the cause variables cause demand
 to fall by 9%. 
Journal: Applied Economics 
Pages: 1643-1654 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000040 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000040 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1643-1654




Template-Type: ReDIF-Article 1.0
Author-Name: David Blake 
Author-X-Name-First: David 
Author-X-Name-Last: Blake 
Author-Name: Angelika Nied 
Author-X-Name-First: Angelika 
Author-X-Name-Last: Nied 
Title: The demand for alcohol in the United Kingdom 
Abstract:
  Using the AIDS model, we show that there exists for the UK a stable
 long-run relationship between expenditure shares on beer, cider, spirits
 and wine, alcohol prices, total alcohol expenditure and a range of
 non-economic variables relating to advertising, licensing, the employment,
 social class and demographic characteristics of consumers, and climate.
 Our estimates of key price and income elasticities generally lie between
 those found from other time-series studies (which exclude most of these
 non-economic variables) and those found from cross-section studies (which
 generally include them). However, the restrictions required for
 separability, homegeneity and symmetry (although not those for perfect
 price aggregation) are decisively rejected. 
Journal: Applied Economics 
Pages: 1655-1672 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000041 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000041 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1655-1672




Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Kaskarelis 
Author-X-Name-First: Ioannis 
Author-X-Name-Last: Kaskarelis 
Title: Aggregate returns to scale in Greek manufacturing 
Abstract:
  This paper takes an imperfect competition model of the economy in order
 to investigate for retuns to scale in Greek manufacturing and examines,
 through a small-scale macroeconomic model, the implication of estimates.
 For this purpose a price, wage and demand for output equations are
 estimated, using annual data for the period 1954-94. Prices come through
 the profits maximization process and depend on wage, capital rental,
 demand and a number of other variables denoing technology and market
 competition. Results are clearly in favour of increasing returns to scale
 hypothesis, although alternative explanations for the negative demand
 effect on prices cannot be excluded. 
Journal: Applied Economics 
Pages: 1673-1678 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1673-1678




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaming Liu 
Author-X-Name-First: Xiaming 
Author-X-Name-Last: Liu 
Author-Name: Haiyan Song 
Author-X-Name-First: Haiyan 
Author-X-Name-Last: Song 
Author-Name: Peter Romilly 
Author-X-Name-First: Peter 
Author-X-Name-Last: Romilly 
Title: An empirical investigation of the causal relationship between openness and economic growth in China 
Abstract:
  This study investigates the causal relationship between openness and
 economic growth in China. The integration and cointegration properties of
 the data are analysed and the models of Granger, Sims, Geweke and Hsiao
 are used to identify a bi-directional causal relationship between GNP and
 exports plus imports. This bi-directional causation is consistent with
 China's development strategy of protected export promotion 
Journal: Applied Economics 
Pages: 1679-1686 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1679-1686




Template-Type: ReDIF-Article 1.0
Author-Name: Osman Suliman 
Author-X-Name-First: Osman 
Author-X-Name-Last: Suliman 
Title: Innovation and weak labour disposability: some theoretical and empirical evidence 
Abstract:
  This paper envisages theoretically and empirically the weak labour
 disposability and the ability of labour to innovate in a poor-capital,
 surplus-labour economy. Therefore, a production function where the
 marginal product can become zero or even negative has been derived and
 estimated using data from Suden over the period 1968-88, with quarterly
 interpolation. Thus, unlike neoclassical specifications of endogenous
 growth theory, labour withdrawal may have minimal effect on output. The
 results indicate the presence of weak disposability of labour. The
 existence of a discernibly low capital-saving technical relationship
 between labour and capital has been verified using cointegration
 techniques. 
Journal: Applied Economics 
Pages: 1687-1693 
Issue: 12 
Volume: 29 
Year: 1997 
X-DOI: 10.1080/00036849700000044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1687-1693




Template-Type: ReDIF-Article 1.0
Author-Name: Ruben Cohen 
Author-X-Name-First: Ruben 
Author-X-Name-Last: Cohen 
Title: An analysis of the dynamic behaviour of earnings distributions 
Abstract:
  An analysis of the dynamic behaviour of earnings distributions is
 conducted here in three ways. First, the method of dimensional analysis,
 in the context of Buckingham's Pi theorem, is employed to demonstrate that
 earnings distributions, which are almost always dynamic in character,
 should, under certain conditions and a special coordinate transformation,
 be self-similar and time-invariant. Application of the theorem to some
 empirical data, pertaining to Canadian income, fully confirms this
 finding. Second, an economics-based model, incorporating the concept of a
 shock-free economy in competitive equilibrium, is developed to provide an
 intuitive account of the conclusions reached above. Testing the model's
 predictions against data once again yields satisfactory agreement between
 the two. The model is finally extended to account for labour-force
 mobility across income brackets. The outcome of this, when compared with
 empirical data, could reflect the degree of homogeneity, and even
 discrimination, in a labour force. 
Journal: Applied Economics 
Pages: 1-17 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326092 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326092 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:1-17




Template-Type: ReDIF-Article 1.0
Author-Name: Michelle Baddeley 
Author-X-Name-First: Michelle 
Author-X-Name-Last: Baddeley 
Author-Name: Ron Martin 
Author-X-Name-First: Ron 
Author-X-Name-Last: Martin 
Author-Name: Peter Tyler 
Author-X-Name-First: Peter 
Author-X-Name-Last: Tyler 
Title: Transitory shock or structural shift? The impact of the early 1980s recession on British regional unemployment 
Abstract:
  This paper examines the impact of the early 1980s recession on regional
 unemployment in Britain. More specifically, it seeks to evaluate the
 hypothesis that this recessionary shock was so severe that it caused an
 upward structural shift in the underlying mean unemployment rates of the
 regions. This proposition is analysed using Dickey &#x2014; Fuller tests
 for difference versus trend stationarity, and the augmented structural
 shift and trend break time-series models developed by Perron. The results
 suggest that the apparent stochastic non-stationarity in regional
 unemployment over the period 1965 - 95 is in fact due to an upward
 structural shift in regional mean unemployment rates in 1980. Furthermore,
 the nature of this shift appears to have differed as between the northern
 and southern regions of the country. 
Journal: Applied Economics 
Pages: 19-30 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326100 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326100 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:19-30




Template-Type: ReDIF-Article 1.0
Author-Name: J. H. L. Dewhurst 
Author-X-Name-First: J. H. L. 
Author-X-Name-Last: Dewhurst 
Title: Convergence and divergence in regional household incomes per head in the United Kingdom, 1984-93 
Abstract:
  This paper examines the &#x3c3;-convergence of regional household incomes
 in the UK and finds support for the idea that regions in the UK have, in
 the recent past, tended to diverge during booms and converge during
 slumps. A new way of presenting the change in the distribution of regional
 incomes is offered. The results are extended to the consideration of
 movements in the higher moments of the underlying distributions. 
Journal: Applied Economics 
Pages: 31-35 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326119 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326119 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:31-35




Template-Type: ReDIF-Article 1.0
Author-Name: Ram Acharya 
Author-X-Name-First: Ram 
Author-X-Name-Last: Acharya 
Author-Name: Robert Ekelund 
Author-X-Name-First: Robert 
Author-X-Name-Last: Ekelund 
Title: Mixed and pure sharecropping in Nepal: empirical evidence supporting the traditional hypothesis 
Abstract:
  We analyse differences in input and output intensities across three
 comparative tenure regimes in Nepal, using two test methods: an F-test
 based on Hotelling's T2 statistic, and a test which adapts Shaban's (1987)
 methodology to include plot size and crop type. Our results reveal
 statistically significant differences in the three alternative systems of
 property rights assignments, which have implications for economic theory
 and policy relating to tenure systems. 
Journal: Applied Economics 
Pages: 37-50 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326128 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326128 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:37-50




Template-Type: ReDIF-Article 1.0
Author-Name: Tilak Abeysinghe 
Author-X-Name-First: Tilak 
Author-X-Name-Last: Abeysinghe 
Author-Name: Tan Lin Yeok 
Author-X-Name-First: Tan Lin 
Author-X-Name-Last: Yeok 
Title: Exchange rate appreciation and export competitiveness. The case of Singapore 
Abstract:
  Policy prescriptions have generally assumed that exchange rate
 depreciation would stimulate exports and curtail imports, while exchange
 rate appreciation would be detrimental to exports and encourage imports.
 This prediction has, however, often neglected to consider the existence of
 the import content of exports, as well as the dynamic effects of
 productivity improvements. Our paper seeks to show empirically, the
 significance of these two factors in affecting the competitiveness of
 Singapore's exports. Specifically, the paper shows that in the presence of
 high import content, exports are not adversely affected by currency
 appreciation because the lower import prices due to appreciation reduce
 the cost of export production. In the case of Singapore, this cushioning
 effect outweighs that of the effect of productivity gains on export
 competitiveness. The service exports, however, with a very low import
 content tend to suffer from currency appreciation. 
Journal: Applied Economics 
Pages: 51-55 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326137 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326137 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:51-55




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Sumner 
Author-X-Name-First: Michael 
Author-X-Name-Last: Sumner 
Title: Permanent and transitory effects of fiscal policy on investment in the UK 
Abstract:
  A major change in the British corporate tax system had only a weak effect
 on the level of manufacturing investment, but caused a large and highly
 significant reduction in its seasonal variance. The explanation of this
 change sheds new light on the impact of pre-announced tax changes. 
Journal: Applied Economics 
Pages: 57-62 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326146 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:57-62




Template-Type: ReDIF-Article 1.0
Author-Name: Basil Dalamagas 
Author-X-Name-First: Basil 
Author-X-Name-Last: Dalamagas 
Title: Endogenous growth and the dynamic Laffer curve 
Abstract:
  Advocates of supply-side economics contend that at least some of the
 economies are on the negatively sloped portion of the well-publicized
 Laffer curve, so that a lowering of tax rates will increase tax revenue
 and, thereby, reduce fiscal deficits in the long run. The purpose of this
 paper is to provide a simple but fundamentally correct framework &#x2014;
 in the context of a convex model of endogenous growth &#x2014; within
 which this contention may be analysed. The central finding is that, in the
 Group of Seven (G7), the issue of the response of deficits to tax rate
 changes cannot be resolved unless the crowding-out and crowding-in aspects
 of government intervention are taken into account. 
Journal: Applied Economics 
Pages: 63-75 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326155 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326155 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:63-75




Template-Type: ReDIF-Article 1.0
Author-Name: Harald Gruber 
Author-X-Name-First: Harald 
Author-X-Name-Last: Gruber 
Title: The diffusion of innovations in protected industries: the textile industry 
Abstract:
  The diffusion of the shuttleless loom, a major innovation in the textile
 industry, has been relatively slow in spite of the undisputed improvement
 with respect to the conventional shuttle loom used for weaving textiles.
 The diffusion of shuttleless looms in industrialized countries is analysed
 in the framework of an epidemic diffusion model where the diffusion speed
 parameter is allowed to vary. Of the various factors affecting the speed
 of diffusion, trade liberalization seems to have the most potent impact in
 accelerating diffusion. This finding is consistent with the idea that
 trade liberalization is conducive to speeding up the diffusion of
 innovations. 
Journal: Applied Economics 
Pages: 77-83 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326164 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326164 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:77-83




Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton 
Author-X-Name-First: James 
Author-X-Name-Last: Thornton 
Title: The labour supply behaviour of self-employed solo practice physicians 
Abstract:
  This paper investigates the empirical labour supply behaviour of
 self-employed solo practice physicians. The specification of the empirical
 labour supply equation is based on a model of constrained
 utility-maximizing behaviour that recognizes the physician makes
 work/leisure choices based on an endogenous shadow wage and faces a
 nonlinear budget constraint. The findings suggest that the typical
 self-employed solo practice male physician operates on the upward-sloping
 portion of the labour supply curve and is relatively unresponsive to
 changes in marginal hourly medical practice earnings and non-practice
 income. 
Journal: Applied Economics 
Pages: 85-94 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326173 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326173 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:85-94




Template-Type: ReDIF-Article 1.0
Author-Name: Cherian Samuel 
Author-X-Name-First: Cherian 
Author-X-Name-Last: Samuel 
Title: The investment decision: a re-examination of competing theories using panel data 
Abstract:
  A re-examination of the competing theories of investment using panel data
 for US manufacturing firms finds that the time-series regressions rank the
 neoclassical model as the best and the cross-section and fixed effects
 regressions give the number 1 spot to the cash flow model. If the results
 from cross-section regressions are viewed as representing the long-run
 equilibrium, the single-most important determinant of capital expenditures
 appears to be cash flows. These results are consistent with earlier
 findings in the literature, support the need for an eclectic approach to
 the study of capital expenditure decisions at the firm level, and
 vindicate the choice of the firm as the basic unit of analysis in the
 study. 
Journal: Applied Economics 
Pages: 95-104 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326182 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326182 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:95-104




Template-Type: ReDIF-Article 1.0
Author-Name: Martha Field 
Author-X-Name-First: Martha 
Author-X-Name-Last: Field 
Author-Name: Emilio Pagoulatos 
Author-X-Name-First: Emilio 
Author-X-Name-Last: Pagoulatos 
Title: Foreign trade elasticities and import discipline 
Abstract:
  This paper provides new evidence on the 'trade-as-discipline7rsquo;
 hypothesis by considering the determination of price - cost margins with a
 panel of 41 four-digit US food manufacturing industries from 1972 to 1987.
 Following the empirical specification suggested by competitive fringe
 oligopoly models, we include estimated domestic demand elasticities and
 cross-price elasticities of import demand as explanatory variables, and
 the empirical results confirm the importance of these variables in
 assessing the hypothesis. 
Journal: Applied Economics 
Pages: 105-111 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326191 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326191 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:105-111




Template-Type: ReDIF-Article 1.0
Author-Name: Jeung-Lak Lee 
Author-X-Name-First: Jeung-Lak 
Author-X-Name-Last: Lee 
Author-Name: Carolyn Clark 
Author-X-Name-First: Carolyn 
Author-X-Name-Last: Clark 
Author-Name: Sung Ahn 
Author-X-Name-First: Sung 
Author-X-Name-Last: Ahn 
Title: Long- and short-run Fisher effects: new tests and new results 
Abstract:
  We find Fisher effects, both long- and short-run, in our full sample
 period and in the lengthy first sub-period, using Mishkin's monthly data
 for Treasury bill yields and the corresponding inflation rate. Recently
 developed cointegration techniques (Ahn and Reinsel, 1990; Reinsel and
 Ahn, 1992) are used to detect a long-run Fisher effect. The short-run
 effect is analysed within a cointegration framework, using a Granger
 causality test that we developed. In the two more recent, but
 comparatively short sub-periods since October 1979, our results indicate
 the Fisher effect is not present in either long- or short-run form. These
 methodologies and results differ from the conclusions of Mishkin's (1992)
 recent study. 
Journal: Applied Economics 
Pages: 113-124 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326209 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326209 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:113-124




Template-Type: ReDIF-Article 1.0
Author-Name: Jati Sengupta 
Author-X-Name-First: Jati 
Author-X-Name-Last: Sengupta 
Title: The efficiency distribution in a production cost model 
Abstract:
  Methods of estimating efficiency by cost frontiers are analysed here by
 generalizing the efficiency distribution approach in Farrell's convex hull
 method of cost minimization. 
Journal: Applied Economics 
Pages: 125-132 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326218 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326218 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:125-132




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Hanousek 
Author-X-Name-First: Jan 
Author-X-Name-Last: Hanousek 
Author-Name: Eugene Kroch 
Author-X-Name-First: Eugene 
Author-X-Name-Last: Kroch 
Title: The two waves of voucher privatization in the Czech Republic: a model of learning in sequential bidding 
Abstract:
  This study develops a dynamic model of bidding behaviour to investigate
 the Czech voucher privatization process, which took place in two waves of
 bidding rounds, the first in 1992 and the second in 1994. It examines the
 voucher mechanism from the standpoint of investors and the pricing and
 allocation of shares. Investors could participate as independent
 individuals or by assigning some of all of their voucher points to
 investment privatization funds. Principal findings are that individual
 participants behaved differently from funds and benefited by learning from
 one round to the next and from observing the behaviour of the funds. An
 important collateral finding is that the market, though crude, behaved
 efficiently in the adjustment of share prices over the bidding rounds. 
Journal: Applied Economics 
Pages: 133-143 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326227 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326227 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:133-143




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Abbott 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Abbott 
Author-Name: Kevin Lawler 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Lawler 
Author-Name: Marcus Ling 
Author-X-Name-First: Marcus 
Author-X-Name-Last: Ling 
Title: An empirical analysis of the effects of the Monopolies and Mergers Commission Beer Orders (1989) on the UK brewing industry 
Abstract:
  The aim of this paper is to analyse the structural changes in the UK
 brewing industry, resulting from the Monopolies and Mergers Commission's
 (MMC) Beer Orders, 1989. Our discussion is supported by an empirical
 analysis of the effects of these recommendations on the demand for beer in
 the UK. The empirical results indicate no significant change in the
 national market following the recent government interventation. 
Journal: Applied Economics 
Pages: 145-149 
Issue: 1 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498326236 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326236 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:145-149




Template-Type: ReDIF-Article 1.0
Author-Name: Loren Tauer 
Author-X-Name-First: Loren 
Author-X-Name-Last: Tauer 
Author-Name: Zdenko Stefanides 
Author-X-Name-First: Zdenko 
Author-X-Name-Last: Stefanides 
Title: Success in maximizing profits and reasons for profit deviation on dairy farms 
Abstract:
	      The weak axiom of profit maximization (WAPM) was used to test
 how successful each of 70 individual New York State dairy farms was in
 maximizing profits using nine years of data. The netput vectors were
 corrected for technological change using nonparametric indices that do not
 require the assumption of profit maximization nor any functional form for
 the underlying technology. These technology indices are consistent with
 the nonparametric assumptions used in the WAPM tests. The average negative
 WAPM deviation over the 70 farms was 0.20, indicating that on average
 these farms could have selected available netput vectors that would have
 increased profits by 20% of total receipts. A tobit regression showed that
 the available characteristics on these farms explained very little of the
 variability in their abilities to select the best netput vectors. Yet,
 increased age and additional education increased the ability to select the
 best netput vector.	      
Journal: Applied Economics 
Pages: 151-156 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498325958 
File-URL: http://hdl.handle.net/10.1080/000368498325958 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:151-156




Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Santarelli 
Author-X-Name-First: Enrico 
Author-X-Name-Last: Santarelli 
Title: Start-up size and post-entry performance: the case of tourism services in Italy 
Abstract:
	      A large and comprehensive longitudinal database is used to
 identify the start-up of new firms in the Italian tourist industry and
 their subsequent post-entry performance. Analysed in particular is the
 link between the survival of hotels, restaurants, and catering firms in
 each Italian region and their start-up size. By using logit estimation, it
 is found that for eighteen out of twenty regions the relationship has the
 expected sign, although only for twelve regions and the country as a whole
 did it turn out to be statistically significant.	   
Journal: Applied Economics 
Pages: 157-163 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498325967 
File-URL: http://hdl.handle.net/10.1080/000368498325967 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:157-163




Template-Type: ReDIF-Article 1.0
Author-Name: Klass H. W. Knot 
Author-X-Name-First: Klass H. W. 
Author-X-Name-Last: Knot 
Title: The fundamental determinants of interest rate differentials in the ERM 
Abstract:
	      The paper analyses the sources of persistent interest rate
 differentials <italic>vis-�-vis</italic> Germany that have existed in
 Belgium, Denmark, France, Ireland, Italy, and the Netherlands. In a target
 zone system like the ERM, interest rate differentials mainly reflect
 devaluation expectations, which are measured here by raw 1-month
 Euromarket interest rate differentials, drift-adjusted 1-month
 differentials, and differentials in long-term government bond yields. The
 role of a large set of fundamental macroeconomic variables that may have
 affected these devaluation expectations is investigated within a vector
 autoregressive (VAR) setting, by means of Granger-causality tests,
 impulse-response functions and variance decompositions. We find no
 evidence that fundamentals are more relevant to drift-adjusted devaluation
 risk than for unadjusted interest rate differentials. A significant impact
 of inflation, budget deficits, and unemployment becomes evident for almost
 all ERM-participants.		
Journal: Applied Economics 
Pages: 165-176 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498325976 
File-URL: http://hdl.handle.net/10.1080/000368498325976 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:165-176




Template-Type: ReDIF-Article 1.0
Author-Name: Hans-Jurgen Engelbrecht 
Author-X-Name-First: Hans-Jurgen 
Author-X-Name-Last: Engelbrecht 
Title: Business sector R&D and Australia's manufacturing trade structure 
Abstract:
	      This study explores the link between R&D intensity and trade
 performance for Australian manufacturing in 1989--90. Net export, export
 and import intensity equations are estimated. Net export equations are
 also corrected for trade imbalance, which has been shown significantly to
 improve the likelihood of correct predictions of revealed factor
 abundances. The importance of testing for appropriate functional forms is
 emphasized. R&D data by industry of product field are clearly preferred
 over industry of enterprise data. The results reconfirm Australia's
 comparative disadvantage in R&D intensive manufacturing and the asymmetry
 in the impact of R&D intensity on net export and export intensity, despite
 the strong increase in business R&D expenditure and the many policy
 initiatives adopted during the 1980s aimed at promoting technological
 capability and increasing non-traditional manufactured exports.	  
Journal: Applied Economics 
Pages: 177-187 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498325985 
File-URL: http://hdl.handle.net/10.1080/000368498325985 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:177-187




Template-Type: ReDIF-Article 1.0
Author-Name: M. Kabir Hassan 
Author-X-Name-First: M. 
Author-X-Name-Last: Kabir Hassan 
Author-Name: David R. Tufte 
Author-X-Name-First: David R. 
Author-X-Name-Last: Tufte 
Title: Exchange rate volatility and aggregate export growth in Bangladesh 
Abstract:
	      The long and short-run determinants of Bangladeshi export
 growth are examined. These are modelled as depending on world trade
 volume, Bangladeshi and world export prices, and exchange rate volatility.
 Several techniques are used to estimate and test hypotheses about the
 cointegration space of these variables. We find that there are two
 plausible restricted cointegrating vectors: one appears to be an export
 demand while the other is suggestive of an export supply. These are then
 imposed on an error correction model. Estimates suggest that in the long
 run, Bangladeshi export growth is driven by the volume of world trade, and
 is negatively, and inelastically related to the volatility of Bangladeshi
 exchange rates. Once these long-run effects are accounted for, it is found
 that none of the variables significantly explains any short-run changes in
 export growth. 	 
Journal: Applied Economics 
Pages: 189-201 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498325994 
File-URL: http://hdl.handle.net/10.1080/000368498325994 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:189-201




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Glick 
Author-X-Name-First: Peter 
Author-X-Name-Last: Glick 
Author-Name: David E. Sahn 
Author-X-Name-First: David E. 
Author-X-Name-Last: Sahn 
Title: Health and productivity in a heterogeneous urban labour market 
Abstract:
	      The effects of changes in various health indicators on hourly
 earnings in different sectors of the labour market are examined using
 survey data from Conakry, Guinea. Greater height, which is associated with
 greater strength, raises earnings of men both in self-employment and the
 private wage sector, where work is likely to involve physical labour.
 Height does not matter for women's earnings, which likely reflects the
 less physically strenuous nature of most women's activities. Body mass
 index, treated as an endogenous variable, appears to raise earnings of men
 in self- and private wage employment and of women in self-employment. No
 impacts are found for household per capita calorie and protein
 availability, also treated as endogenous. Overall, the results suggest
 that health matters for productivity in poor urban environments, with
 these effects depending on gender and the sector of employment or type of
 work.		
Journal: Applied Economics 
Pages: 203-216 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498326001 
File-URL: http://hdl.handle.net/10.1080/000368498326001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:203-216




Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent 
Author-X-Name-First: Robert J. 
Author-X-Name-Last: Brent 
Title: Estimating the effectiveness and benefits of alcohol treatment programmes for use in economic evaluations 
Abstract:
	      A binary probit model based on random utility theory is
 employed to obtain the implicit determinants of alcohol treatment
 effectiveness revealed by decisions made by programme evaluators of
 behavioural changes by patients. A scale of equivalences for the
 behavioural variables is constructed which uses reductions in alcohol
 drinking as the unit of account. Because one of the behavioural variables
 was the change in income from treatment expressed in dollars, the
 trade-offs contained in the scale of equivalences can be translated into
 monetary terms using the human capital approach. The method is applied to
 a sample of 1689 observations from the National Alcoholism Program
 Information System (NAPIS) tapes for 1977-81.		
Journal: Applied Economics 
Pages: 217-226 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498326010 
File-URL: http://hdl.handle.net/10.1080/000368498326010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:217-226




Template-Type: ReDIF-Article 1.0
Author-Name: Irene Henriques 
Author-X-Name-First: Irene 
Author-X-Name-Last: Henriques 
Author-Name: Perry Sadorsky 
Author-X-Name-First: Perry 
Author-X-Name-Last: Sadorsky 
Author-Name: Savita Verma 
Author-X-Name-First: Savita 
Author-X-Name-Last: Verma 
Title: Sectoral fluctuations in Mexico and the 1993 recession 
Abstract:
	      The sectoral fluctuations that occurred during Mexico's 1993
 recession are studied. The 1993 recession differed from other recessions
 in that it was preceded by a period of low inflation and positive
 government surplus. Our empirical analysis suggests that slowdowns in
 natural resource intensive sectors were partially responsible for the 1993
 recession in Mexico.	       
Journal: Applied Economics 
Pages: 227-234 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498326029 
File-URL: http://hdl.handle.net/10.1080/000368498326029 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:227-234




Template-Type: ReDIF-Article 1.0
Author-Name: Shon P. Williams 
Author-X-Name-First: Shon P. 
Author-X-Name-Last: Williams 
Author-Name: C. Richard Shumway 
Author-X-Name-First: C. 
Author-X-Name-Last: Richard Shumway 
Title: Aggregation of data and profit maximization in Mexican agriculture 
Abstract:
	      Nonparametric support for two important hypotheses relevant
 to econometric model specification is examined. Results of various
 nonparametric tests for behavioural objective and aggregation level of
 Mexican agricultural production data are reported. The evidence does not
 refute the hypothesis that producers behave collectively as though they
 are a price-taking, profit-maximizing firm. The empirical results also
 support exhaustive aggregation of input categories. Aggregation
 possibilities among outputs are fewer and are highly sensitive to the
 rejection criterion.	       
Journal: Applied Economics 
Pages: 235-244 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498326038 
File-URL: http://hdl.handle.net/10.1080/000368498326038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:235-244




Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Fotopoulos 
Author-X-Name-First: Georgios 
Author-X-Name-Last: Fotopoulos 
Author-Name: Nigel Spence 
Author-X-Name-First: Nigel 
Author-X-Name-Last: Spence 
Title: Entry and exit from manufacturing industries: symmetry, turbulence and simultaneity - some empirical evidence from Greek manufacturing industries, 1982-1988 
Abstract:
	      The interdependence between entry and exit of firms into
 manufacturing industries is the focus of this research. When both entry
 and exit equations are estimated separately the results support the
 existence of strong symmetry in their determinants. When, however, entry
 and exit are estimated within a simultaneous equation framework, the
 empirical evidence does not offer sufficient grounds to support the notion
 that entry and exit are simultaneously linked. Instead it seems that they
 are two contemporaneously related processes which respond in like fashion
 to the structural characteristics found in particular industries. Their
 linked response is also extended to factors unaccounted for by the
 individual entry and exit formulations, and this expresses itself in
 significant contemporaneous correlation between the entry and exit
 equation residuals. The change in the identities of firms operating,
 implied by the positive correlation between entry and exit, may then be
 attributed to industry turbulent conditions, which in turn appear perhaps
 to be conditioned in the shorter run by time-invariant inter-industry
 differences in technological factors and sunk costs.	       
Journal: Applied Economics 
Pages: 245-262 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498326047 
File-URL: http://hdl.handle.net/10.1080/000368498326047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:245-262




Template-Type: ReDIF-Article 1.0
Author-Name: Patricia L. Chelley-Steeley 
Author-X-Name-First: Patricia L. 
Author-X-Name-Last: Chelley-Steeley 
Author-Name: James M. Steeley 
Author-X-Name-First: James M. 
Author-X-Name-Last: Steeley 
Author-Name: Eric J. Pentecost 
Author-X-Name-First: Eric J. 
Author-X-Name-Last: Pentecost 
Title: Exchange controls and European stock market integration 
Abstract:
	      This paper examines the impact on stock price predictability
 that the removal of exchange controls had on major European countries
 during the late 1970s and 1980s. It is found that for Germany, Switzerland
 and France, the removal of exchange controls led to an increase in the
 interdependence between these and other markets. In contrast, there is
 little evidence of an increase in interdependence for the UK and Italy.    
Journal: Applied Economics 
Pages: 263-267 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498326056 
File-URL: http://hdl.handle.net/10.1080/000368498326056 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:263-267




Template-Type: ReDIF-Article 1.0
Author-Name: Artur C. B. Da Silva Lopes 
Author-X-Name-First: Artur C. B. 
Author-X-Name-Last: Da Silva Lopes 
Title: On the 'restricted cointegration test' as a test of the rational expectations hypothesis* 
Abstract:
	      One of the main consequences of the 'cointegration
 revolution' on the domain of the direct tests of the rational expectations
 hypothesis (REH) was the substitution of the 'restricted cointegration
 test' (RCT) for the 'unbiasedness test'. However, the results of a Monte
 Carlo study show that a simple <italic>t</italic>-test can be much more
 powerful than the RCT. It is argued that the RCT is adequate to
 investigate the 'asymptotic rationality' but that it is not sufficient to
 assess the Muthian rationality of expectations. The discussion is
 empirically illustrated with the test of the REH for the Portuguese retail
 trade inflation expectations.		
Journal: Applied Economics 
Pages: 269-278 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498326065 
File-URL: http://hdl.handle.net/10.1080/000368498326065 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:269-278




Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Kramer 
Author-X-Name-First: Jorg 
Author-X-Name-Last: Kramer 
Title: Determinants of the expected real long-term interest rates in the G7-countries 
Abstract:
	      The paper investigates which factors determine the expected
 real long-term interest rates of the G7-countries as a whole within a
 single equation error correction model. Inflationary expectations are
 generated using the low frequency component of inflation provided by the
 Hodrick-Prescott filter. A comparison of the calculated expected inflation
 rates with those resulting from index-linked and conventional UK bonds
 suggests this approach to be appropriate. Expected real long-term interest
 rates turn out to be influenced positively by real short-term interest
 rates, capacity utilization and structural public borrowing.	       
Journal: Applied Economics 
Pages: 279-285 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498326074 
File-URL: http://hdl.handle.net/10.1080/000368498326074 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:279-285




Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel 
Author-X-Name-First: D. A. 
Author-X-Name-Last: Peel 
Author-Name: A. E. H. Speight 
Author-X-Name-First: A. E. H. 
Author-X-Name-Last: Speight 
Title: The nonlinear time series properties of unemployment rates: some further evidence 
Abstract:
	      The time series properties of unemployment rates for Germany,
 Japan, the UK and the US are re-examined. Evidence of nonlinear structure
 in the residuals of the most parsimonious linear ARMA models is reported
 for all countries except Japan. Modelling this nonlinearity using SETAR
 models suggests strong asymmetry in unemployment dynamics and the presence
 of a possible limit cycle for the UK. However, residual diagnostics for
 these models indicate remaining structure. Alternative TAR models
 conditioned on past growth rates of industrial production yield
 substantial reductions in residual variance over both linear and SETAR
 counterparts, iid residuals in all cases other than the US, and threshold
 values at or very near zero, clearly identifying the asymmetric behaviour
 of unemployment during expansionary and contractionary phases of the
 business cycle.	  
Journal: Applied Economics 
Pages: 287-294 
Issue: 2 
Volume: 30 
Year: 1998 
Month: 2 
X-DOI: 10.1080/000368498326083 
File-URL: http://hdl.handle.net/10.1080/000368498326083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:287-294




Template-Type: ReDIF-Article 1.0
Author-Name: Winston Lin 
Author-X-Name-First: Winston 
Author-X-Name-Last: Lin 
Author-Name: Yueh Chen 
Author-X-Name-First: Yueh 
Author-X-Name-Last: Chen 
Title: Forecasting foreign exchange rates with an intrinsically nonlinear dynamic speed of adjustment model 
Abstract:
  Forecasting foreign exchange rates is an important but difficult process;
 therefore, it is important to use a superior forecasting model. The paper
 takes up this criterion and proposes to describe and forecast foreign
 exchange rates by developing an intrinsically nonlinear model with
 variable and dynamic speeds of adjustment. It is found that the speed of
 adjusting the random (or expected) to the equilibrium rate is very slow,
 implying that fiscal policy (statistically insignificat) and monetary
 policy (statistically significant) may be ineffective to induce changes in
 the adjustment speed. We also find that the nonlinear dynamic model
 improves forecasting performance, implying that nonlinearities in the
 sense of functional forms are exploitable for improved point forecasting
 of foreign exchange rates. 
Journal: Applied Economics 
Pages: 295-312 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325822 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325822 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:295-312




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Robson 
Author-X-Name-First: Martin 
Author-X-Name-Last: Robson 
Title: Self-employment in the UK regions 
Abstract:
  The significant regional variations which exist in the rate of
 self-employment among UK males are highlighted and attempts made to
 explain them. Using pooled crosssection time-series data for the period
 1973 - 93, it is found that in the long run, regional rates of
 self-employmentare a function of the real value of net housing wealth and
 the industry composition of regional GDP. However, a significant
 proportion of regional variations in self-employment can only be explained
 by regional 'fixed effects', which reflect fundamental long-term
 influences which make some regions more fertile environments for
 self-employment than others. 
Journal: Applied Economics 
Pages: 313-322 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325831 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325831 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:313-322




Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel 
Author-X-Name-First: D. A. 
Author-X-Name-Last: Peel 
Author-Name: A. E. H. Speight 
Author-X-Name-First: A. E. H. 
Author-X-Name-Last: Speight 
Title: Threshold nonlinearities in output: some international evidence 
Abstract:
  The empirical adequacy of linear AR and nonlinear SETAR models of
 trend-stationary and difference-stationary representations of output for
 Canada, Germany, Japan, the UK and the US are appraised. Test results
 suggest the presence of linear model residual structure of some form for
 all series, and nonlinearities of specifically threshold form in
 trend-stationary data for Canada, Germany, Japan and the US, and
 difference-stationary data for Germany, Japan and the US. With the
 exception of Canada, estimated threshold nonlinear models imply asymmetric
 dynamics, are able to account for all nonlinear structure in the data on
 the basis of BDS statistics, and provide sizeable reductions in residual
 variance in several cases, most notably for Germany. 
Journal: Applied Economics 
Pages: 323-333 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325840 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325840 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:323-333




Template-Type: ReDIF-Article 1.0
Author-Name: Stein Ostbye 
Author-X-Name-First: Stein 
Author-X-Name-Last: Ostbye 
Title: Real options, wage bargaining, factor subsidies and employment 
Abstract:
  The paper combines a translog variable cost function, a bargaining model
 of wage determination and a real option model determining real capital.
 Using this framework, the effect of factor subsidies on labour demand is
 estimated, based on aggregate panel data for Norwegian manufacturing
 industry in the period 1980-1988 
Journal: Applied Economics 
Pages: 335-344 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325859 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325859 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:335-344




Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Nayga 
Author-X-Name-First: Rodolfo 
Author-X-Name-Last: Nayga 
Title: A sample selection model for prepared food expenditures 
Abstract:
  The factors affecting household expenditures on four types of prepared
 food products from a sample selection model estimated using a two-step
 method are explored. Results suggest that several variables affect
 household expenditures on various prepared food products. Factors examined
 are presence of children, number of earners, region, household size,
 seasonality, age, race, education, and income. 
Journal: Applied Economics 
Pages: 345-352 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325868 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325868 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:345-352




Template-Type: ReDIF-Article 1.0
Author-Name: William Stine 
Author-X-Name-First: William 
Author-X-Name-Last: Stine 
Title: Explaining the decision to repeal an optional local tax 
Abstract:
  County governments in Pennsylvania have had the option to repeal the
 intangible property tax since 1978. As of 1992, 27 of Pennsylvania's 66
 counties had repealed it. An attempt is made to explain empirically the
 probability of repeal in this paper. The empirical model accounts for a
 large part of the variation across counties. The results show that the
 probability of levying the intangible property tax is positively related
 to the projected change in the real estate tax rate. Further, it was found
 that revenue diversification and several taste and political variables
 significantly influence the repeal decision. These findings are consistent
 with those of previous tax adoption studies. The evidence, however, does
 not show the exportation of real estate taxes to have the expected effect
 on the probability of repeal. 
Journal: Applied Economics 
Pages: 353-363 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325877 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325877 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:353-363




Template-Type: ReDIF-Article 1.0
Author-Name: J. Stephen Ferris 
Author-X-Name-First: J. Stephen 
Author-X-Name-Last: Ferris 
Title: Real government size, automatic feedback rules and the measured effectiveness of fiscal policy 
Abstract:
  This paper argues that as intervention, fiscal policy means more than
 simply any change in government spending and this requires of fiscal
 analysis a measure that separates the allocative from the counter-cyclical
 activities of government. Defining intervention as an optimal policy rule
 that responds automatically to privately unanticipated variations in
 output, a general equilibrium model is built to separate the supply side
 effects of desired changes in the size of government from demand side
 interventions designed to stimulate aggregate demand. The model is tested
 using the results of a public choice investigation of the real size of
 government (Ferris and West, 1996). That exercise produces a measure of
 desired size and, through its residual, an implicit measure of
 intervention. The paper tests the prediction that increases in desired
 size increase aggregate supply and that ex post measures of fiscal
 intervention can be recovered and tested for their effect on aggregate
 output. The test uses CITIBASE US annual data from 1959 through 1989. 
Journal: Applied Economics 
Pages: 365-373 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325886 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:365-373




Template-Type: ReDIF-Article 1.0
Author-Name: George Vamvoukas 
Author-X-Name-First: George 
Author-X-Name-Last: Vamvoukas 
Title: The relationship between budget deficits and money demand: evidence from a small economy 
Abstract:
  A considerable number of empirical studies exploring the links between
 budget deficits and the demand for money have led to mixed results. By
 using annual data of the Greek economy and previous empirical studies,
 this paper empirically evaluates the sensitivity and validity of the
 Keynesian proposition and the Ricardian equivalence hypothesis. The paper
 employs cointegration, ECM methodology, and several diagnostic and
 specification tests. The empirical findings show a significant and
 positive relationship between budget deficits and the demand for money,
 supporting the Keynesian model. 
Journal: Applied Economics 
Pages: 375-382 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325895 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:375-382




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Brakman 
Author-X-Name-First: Steven 
Author-X-Name-Last: Brakman 
Author-Name: Elmer Sterken 
Author-X-Name-First: Elmer 
Author-X-Name-Last: Sterken 
Title: A test of Dutch long-run export supply behaviour 
Abstract:
  The small country assumption affects the modelling of the export demand
 and export price equations. A large (monopolistic) country can set its
 export price as a mark-up over marginal cost, because it has market power.
 In contrast, small countries have to deal with competition which forces
 prices down to the price level of foreign competitors; prices are
 exogenous. Another possibility is the case in which a small country wants
 to preserve market shares in foreign markets, this results in fully
 endogenous pricing. This paper tests the small country export hypothesis
 for the Dutch economy using a long-run VAR-model. The estimated VAR-model
 includes two long-run equilibrium relationships, which can be identified
 as an export supply and export demand equation. Restrictions on the
 variables are used to test the various hypotheses concerning the long-run
 supply relationships. 
Journal: Applied Economics 
Pages: 383-389 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325903 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:383-389




Template-Type: ReDIF-Article 1.0
Author-Name: Insang Hwang 
Author-X-Name-First: Insang 
Author-X-Name-Last: Hwang 
Title: Long-run determinant of Korean economic growth: empirical evidence from manufacturing 
Abstract:
  This paper challenges the recent contrarian view that the phenomenal
 growth of East Asian NICs is fuelled mainly by the accumulation of
 production inputs not by TFP growth. To appraise this view, we
 investigated and re-evaluated South Korean manufacturing growth
 (1973(Q1)-1993(Q4)). Using Johansen's cointegrating analysis, our results
 show that South Korean manufacturing appears to have increasing returns to
 scale in production technology. The 'learning by doing' effect defined by
 Lucas (1988) is empirically supported. This effect appears to be observed
 as a long-run determinant of South Korean manufacturing growth.
 Consequently, South Korean manufacturing growth can be described by an
 endogenous economic growth model, such as the Lucas (1988) model,
 contradicting the contrarian view. 
Journal: Applied Economics 
Pages: 391-405 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325912 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325912 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:391-405




Template-Type: ReDIF-Article 1.0
Author-Name: Antonello Scorcu 
Author-X-Name-First: Antonello 
Author-X-Name-Last: Scorcu 
Title: Consumption risk-sharing in Italy 
Abstract:
  This paper analyses the issue of consumption risk-sharing in the 20
 Italian regions during the period 1983-94. The tests proposed allow for
 regional specific departures from the hypothesis of complete risk-sharing
 and for the existence of non-separabilities among groups of commodities.
 Empirical evidence suggests the rejection of the hypothesis of complete
 consumption risk-sharing. 
Journal: Applied Economics 
Pages: 407-414 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325921 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325921 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:407-414




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammed Islam 
Author-X-Name-First: Muhammed 
Author-X-Name-Last: Islam 
Title: Export expansion and economic growth: testing for cointegration and causality 
Abstract:
  This paper develops a multivariate error-correction model to test the
 causality between exports and growth in 15 Asian countries, 1967-91. The
 underlying series are tested as non-stationary in levels but stationary in
 first differences. The causal factors are cointegrated in five of these
 countries only. Causality test results indicate that export expansion
 causes growth in two-third of these countries, corrected for simultaneity
 between the causal factors. A country with a large public sector, higher
 level of economic development, and which is less vulnerable to external
 economic shocks is more likely to reap the benefits of export promotion
 strategies. The causal inferences are fairly stable over the sample
 period. 
Journal: Applied Economics 
Pages: 415-425 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325930 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325930 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:415-425




Template-Type: ReDIF-Article 1.0
Author-Name: Seyed Mehdian 
Author-X-Name-First: Seyed 
Author-X-Name-Last: Mehdian 
Author-Name: Rasoul Rezvanian 
Author-X-Name-First: Rasoul 
Author-X-Name-Last: Rezvanian 
Title: Production economies of small depository institutions in the post-FIRREA era: evidence from cooperative banks 
Abstract:
  To evaluate the effects of the Financial Institutions Reform, Recovery
 and Enforcement Act (FIRREA) of 1989 on the cost behaviour of thrift
 institutions, this study examines the economies of scale and scope of
 cooperative banks for the years 1992-94. The findings provide evidence of
 economies of scale and scope over the period under study. In addition, the
 results suggest the presence of product-specific economies of scale and
 scope with respect to a few of the products included in the portfolios of
 the samples. Some policy implications are drawn based on the findings. 
Journal: Applied Economics 
Pages: 427-433 
Issue: 3 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325949 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325949 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:427-433




Template-Type: ReDIF-Article 1.0
Author-Name: Jaehwan Park 
Author-X-Name-First: Jaehwan 
Author-X-Name-Last: Park 
Author-Name: Ronald Ratti 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Ratti 
Title: Stationary data and the effect of the minimum wage on teenage employment 
Abstract:
  One of the interesting features of time series work on the effect of the
 minimum wage is that the problem of possible spurious regressions when
 data may be non-stationary has been largely ignored. It is shown that this
 is potentially a serious problem. It is found that although the teenage
 employment to population ratio is stationary, the 'independent' variables
 in time series regression equations are non-stationary. Substitution of
 the stationary first differences of the independent variables in the
 regression equations for their levels, is found to greatly undermine the
 estimated influence of the minimum wage on the employment-to-population
 ratio. Estimates of the effect of the minimum wage are found to be only
 marginally more significant when seasonal differencing of the dependent
 variable and an ARCH estimation technique are employed. 
Journal: Applied Economics 
Pages: 435-440 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325705 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325705 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:435-440




Template-Type: ReDIF-Article 1.0
Author-Name: Atanu Saha 
Author-X-Name-First: Atanu 
Author-X-Name-Last: Saha 
Author-Name: C. Richard Shumway 
Author-X-Name-First: C. Richard 
Author-X-Name-Last: Shumway 
Title: Refutable implications of the firm model under risk 
Abstract:
  Curvature properties of the indirect utility function are shown to be
 necessary and sufficient for refutable behavioural postulates in the form
 of comparative static results, reciprocity relations, and restrictions on
 output and input responses for firm models under risk. These postulates
 are independent of onerous restrictions on risk preference, technology, or
 random variable distribution. As an exposition, the complete set of
 refutable implications for a multi-output firm operating under price risk
 is derived. At the data means, these implications are not rejected when
 they are tested using firm-level data, but both risk neutrality and
 constant absolute risk aversion are rejected. At individual observations,
 one implication is rejected almost as frequently as risk neutrality and
 constant absolute risk aversion. 
Journal: Applied Economics 
Pages: 441-448 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325714 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325714 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:441-448




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Berument 
Author-Name: Richard Froyen 
Author-X-Name-First: Richard 
Author-X-Name-Last: Froyen 
Title: Potential information and target variables for UK monetary policy 
Abstract:
  The relationship between traditional monetary policy goal variables
 (nominal GDP, real GPD and the inflation rate) and a number of financial
 market variables is investigated. The question examined is which if any of
 these financial market variables (monetary aggregates, interest rates and
 interest rate spreads) are potentially useful as either information
 variables or intermediate targets. While the implications concerning the
 usefulness of the financial variables considered are pessimistic
 concerning nominal GDP, more robust relationships are found for real GDP
 and inflation. The latter finding is of interest given the current UK
 monetary policy strategy of inflation targeting. Our results are, however,
 more supportive of the usefulness of several financial variables as
 information variables than as intermediate targets. 
Journal: Applied Economics 
Pages: 449-463 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325723 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325723 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:449-463




Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Nero 
Author-X-Name-First: Giovanni 
Author-X-Name-Last: Nero 
Title: Spatial multiproduct pricing: empirical evidence on intra-European duopoly airline markets 
Abstract:
  This paper estimates a model of spatial multiproduct duopoly pricing when
 the location patterns differ across markets. The theoretical model
 suggests that the neighbouring configuration yields less competitive Nash
 prices than the interlaced configuration. I apply this model to data for
 intra-European duopoly airline markets. The empirical results support the
 theoretical model since I find that fares are higher on intra-European
 markets that exhibit neighbouring configurations in the time domain. This
 result suggests that price competition is reduced when each airline
 operates on a specific segment of the timetable (e.g. the first 12 hours
 of the day). Clearly, this result has several implications for policy
 makers and/or airport authorities in charge of awarding slots. 
Journal: Applied Economics 
Pages: 465-475 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325732 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:465-475




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Stewart 
Author-X-Name-First: Chris 
Author-X-Name-Last: Stewart 
Title: Reinterpreting the DHSY (1978) consumption function with hindsight 
Abstract:
  The justification for Davidson, Hendry, Srba and Yeo's (DHSY's) selection
 of their favoured equation is shown to be based upon contradicting
 assumptions about inflation. The empirically supported model is argued not
 to have a theoretically justified error-correction interpretation. The
 exclusion of the intercept biases the error-correction term such that it
 becomes significant and negative but undermines the theoretical
 plausibility of the long-run target. More generally, the statistical need
 to include an intercept in any regression to avoid parameter bias is
 demonstrated. The rise in inflation in the 1970s is not considered to be a
 credible explanation of the fall in the average propensity to consume
 (APC) from the 1950s and is shown to have questionable empirical support
 when a below unit income-elasticity is allowed for. The recent articles
 which have found support for DHSY's favoured formulation, augmented by
 time-varying parameters, using the most contemporary UK data should be
 viewed with caution. New interpretations for the DHSY model's persistent
 success are called for if it is not to be considered that dubious
 regressions have been resurrected. 
Journal: Applied Economics 
Pages: 477-489 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325741 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325741 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:477-489




Template-Type: ReDIF-Article 1.0
Author-Name: Helen Jensen 
Author-X-Name-First: Helen 
Author-X-Name-Last: Jensen 
Author-Name: Justo Manrique 
Author-X-Name-First: Justo 
Author-X-Name-Last: Manrique 
Title: Demand for food commodities by income groups in Indonesia 
Abstract:
  An analysis of the structure of demand was performed on household data,
 classified into income groups for urban Indonesia. A demographically
 augmented linearized almost ideal demand system was used to estimate the
 structural parameters of the demand equations. Endogenous switching
 regression techniques yielded unbiased and consistent demand parameter
 estimates for the low-income group, which had a large number of zeros for
 some food groups. Standard seemingly unrelated equation techniques were
 used to estimate the demand parameters for the other income groups. The
 results showed demands for the medium to high- and high-income households
 to be responsive to prices, income and demographic variables. Demands for
 the medium to low-income households were responsive to income and prices
 only. Demands for low-income households were responsive to income and
 prices of rice and fish only. 
Journal: Applied Economics 
Pages: 491-501 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325750 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325750 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:491-501




Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Powell 
Author-X-Name-First: Lisa 
Author-X-Name-Last: Powell 
Title: Part-time versus full-time work and child care costs: evidence for married mothers 
Abstract:
  This paper contributes to the analysis of female labour supply by
 accounting for both child care costs and differences in part-time and
 full-time work. An ordered probit model is used to examine the impact of
 child care costs on the work status of married mothers. Data are drawn
 from the Canadian National Child Care Survey and the Labour Market
 Activity Survey. The results from this paper show the degree to which
 child care subsidies may have differential impacts on part-time and
 full-time work decisions by mothers: the child care cost elasticities for
 part-time and full-time employment are reported to be -0.21 and -0.71,
 respectively. 
Journal: Applied Economics 
Pages: 503-511 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325769 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325769 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:503-511




Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth Caucutt 
Author-X-Name-First: Elizabeth 
Author-X-Name-Last: Caucutt 
Author-Name: Mrinal Ghosh 
Author-X-Name-First: Mrinal 
Author-X-Name-Last: Ghosh 
Author-Name: Christina Kelton 
Author-X-Name-First: Christina 
Author-X-Name-Last: Kelton 
Title: Robustness of the relationship between price variability and inflation for US manufacturing 
Abstract:
  We study the relationship between relative price variability and
 inflation in two different ways. We first look at product-class census
 unit values for five time periods between 1958 and 1982, and find evidence
 of a positive relationship between variability and inflation. Then we
 directly update the Vining and Elwertowski (1976) study for the period
 1974-91, using individual commodity series from the Bureau of Labor
 Statistics. We conclude by discussing differences across industries in
 price stickiness. 
Journal: Applied Economics 
Pages: 513-519 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325778 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:513-519




Template-Type: ReDIF-Article 1.0
Author-Name: Adam Ozanne 
Author-X-Name-First: Adam 
Author-X-Name-Last: Ozanne 
Title: Uncertainty, duality and perversity: an empirical test of the Schultz-Baron hypothesis 
Abstract:
  It has been suggested that supply curves may be negatively sloped under
 conditions of output price uncertainty and risk aversion if the effect of
 an increase in expected price is offset by the effect of an associated
 increase in uncertainty/risk. This hypothesis, first articulated by
 Schultz and given a more rigorous theoretical exposition by Baron, is
 tested using aggregate time series data to estimate a stochastic model of
 US agriculture based on a generalized Leontief certainty equivalent profit
 function. Evidence of risk aversion and a positive correlation between
 mean output price and its variance are found; however, these factors are
 not strong enough to generate perversity. Thus the own-price elasticity of
 supply of agricultural output is found to be positive with a value of
 0.25. Although no evidence of perversity is found, the empirical results
 suggest that ignoring price uncertainty may bias estimates of aggregate
 supply response downwards by between 5% and 47%. As well as testing the
 Schultz - Baron hypothesis, the paper demonstrates how the dual approach
 to applied production analysis can be extended to cover production under
 output price uncertainty. 
Journal: Applied Economics 
Pages: 521-530 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325787 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325787 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:521-530




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer 
Author-X-Name-First: Richard 
Author-X-Name-Last: Thalheimer 
Title: Parimutuel wagering and video gaming: a racetrack portfolio 
Abstract:
  Parimutuel wagering has been declining for several decades due, in part,
 to increased competition from state lotteries and casino gaming. In recent
 years, an attempt has been made to integrate video lottery terminal (VLT)
 gaming into a parimutuel racetrack's product portfolio. Daily data are
 used to develop product demand equations for parimutuel horse-race
 wagering and video lottery gaming at a throughbred racetrack. It is found
 that introduction of VLTs into the product mix results in decreased
 parimutuel wagering and revenues. However, the additional revenue
 generated from the VLTs is found to more than offset the decline in
 parimutuel revenue and the increased expense associated with the VLTs,
 given that a sufficient number of terminals are made available. When
 revenue from the combined parimutuel and VLT gaming product increases, if
 the respective shares of the VLT revenue distributed to the racetrack, to
 the horsemen who race horses at the racetrack and to the government are
 the same as their distributive shares from parimutuel wagering, all will
 enjoy an increase in revenue. To the extent that the respective shares of
 these participants differ from their share of parimutuel wagering, all
 participants may or may not enjoy an increase in revenue, depending upon
 the magnitude of the revenue increase. An additional finding of importance
 is that patrons who attend and wager on horse racing also wager on the VLT
 games while patrons who attend for the VLT gaming are less likely to wager
 on horse racing. 
Journal: Applied Economics 
Pages: 531-544 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325796 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:531-544




Template-Type: ReDIF-Article 1.0
Author-Name: Erdal Ozmen 
Author-X-Name-First: Erdal 
Author-X-Name-Last: Ozmen 
Title: Is currency seigniorage exogenous for inflation tax in Turkey? 
Abstract:
  This paper discusses the implications of the validity of the conditioning
 hypothesis for the maintained money demand equation for an inflation tax
 analysis. We also test the validity of the quantity-theoretical inflation
 tax model for the post-1980 quarterly Turkish data by using Johansen
 cointegration techniques. The results suggest that the tax rate
 (inflation) is weakly exogenous for the parameters of the long-run money
 demand (tax base) equation. This result, consistent with a Keynesian
 endogenous seigniorage-exogenous inflation tax rate theory prior, does not
 support the hypothesis that the Turkish inflation can be explained by the
 conventional inflation tax revenue-maximizing motive alone. 
Journal: Applied Economics 
Pages: 545-552 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325804 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:545-552




Template-Type: ReDIF-Article 1.0
Author-Name: Geoffrey Williams 
Author-X-Name-First: Geoffrey 
Author-X-Name-Last: Williams 
Author-Name: Ashok Parikh 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Parikh 
Author-Name: David Bailey 
Author-X-Name-First: David 
Author-X-Name-Last: Bailey 
Title: Are exchange rates determined by macroeconomic factors? 
Abstract:
  In this study, we consider 15 countries and examine the relationship
 between exchange rate volatility and macroeconomic volatility. We show
 that, in general, empirical support for the existence of a link between
 exchange rates and macroeconomic fundamentals is very weak and that other
 factors are more important in casting light on the behaviour of exchange
 rates. In particular, we investigate the links between risk premia and
 exchange rates across our sample of countries. Using ARCH and GARCH
 techniques, we illustrate that despite the targeting policies of the ERM,
 risk premia are evident for the majority of countries in our sample. 
Journal: Applied Economics 
Pages: 553-567 
Issue: 4 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325813 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:553-567




Template-Type: ReDIF-Article 1.0
Author-Name: David Karemera 
Author-X-Name-First: David 
Author-X-Name-Last: Karemera 
Author-Name: Vera Harper 
Author-X-Name-First: Vera 
Author-X-Name-Last: Harper 
Author-Name: Victor Iwuagwu Oguledo 
Author-X-Name-First: Victor Iwuagwu 
Author-X-Name-Last: Oguledo 
Title: Random walks and monetary velocity in the G-7 countries: new evidence from a multiple variance ratio test 
Abstract:
  The random walk hypothesis (RWH) of the velocity of money has often been
 supported for the developed economies. The literature is, however, far
 from unanimous. This paper employs the most recent methodological advances
 in testing for random walks, the multiple variance ratio test, to
 re-examine the behaviour of the velocity of money in the G-7 countries.
 Monetary velocity is computed as the ratio of nominal income to
 contemporaneous money stock, under alternative definitions of income and
 money. The empirical results from the present study do not support the RWH
 in most of the G-7 countries, with the US M1 and M2 velocities as
 exceptions. Furthermore, the results show that the RWH is sensitive to
 either the definitions of monetary velocity or the sample period of study. 
Journal: Applied Economics 
Pages: 569-578 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325552 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:569-578




Template-Type: ReDIF-Article 1.0
Author-Name: Rajindar Koshal 
Author-X-Name-First: Rajindar 
Author-X-Name-Last: Koshal 
Author-Name: Manjulika Koshal 
Author-X-Name-First: Manjulika 
Author-X-Name-Last: Koshal 
Title: Determinants of tuition at comprehensive 
Abstract:
  This study attempts to build and estimate a model that explains the
 behaviour of the supply of and demand for education at comprehensive
 universities in the United States. The statistical analysis uses data for
 the year 1990 - 91 for 360 comprehensive universities. The results suggest
 that a perfectly competitive market exists for this education. The
 quantity of students, cost of education, average SAT score, class size,
 level of highest degree offered, and tier of the institution explain
 variations in tuition at comprehensive universities. 
Journal: Applied Economics 
Pages: 579-583 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325561 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:579-583




Template-Type: ReDIF-Article 1.0
Author-Name: Yiping Huang 
Author-X-Name-First: Yiping 
Author-X-Name-Last: Huang 
Author-Name: K. P. Kalirajan 
Author-X-Name-First: K. P. 
Author-X-Name-Last: Kalirajan 
Title: Enterprise reform and technical efficiency of China's state-owned enterprises 
Abstract:
  This study investigates whether the enterprise reforms were helpful for
 the technical efficiency of China's state-owned enterprises. A stochastic
 varying coefficients frontier approach is applied on enterprise survey
 data in 1992. The results suggest that exposure to market competition (or
 less state intervention) is positively correlated with firms' level of
 technical efficiency. There is no evidence, however, of positive
 contribution by adoption of the new enterprise institutions to technical
 efficiency. 
Journal: Applied Economics 
Pages: 585-592 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325570 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:585-592




Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Southwick 
Author-X-Name-First: Lawrence 
Author-X-Name-Last: Southwick 
Title: An economic analysis of murder and accident risks for police in the United States 
Abstract:
  The idea that US police are at great risk in their jobs is examined. It
 is found that their risk of being murdered is actually less than for other
 people of the same age and sex. US police are, however, at modestly higher
 risk of accidental death than are other workers. A four equation model,
 including supply, demand, accident risk, and homicide risk, is estimated
 and it is found that police are able to influence the accident and
 homicide risks they face and do affect these risks in response to salary
 received. 
Journal: Applied Economics 
Pages: 593-605 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325589 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325589 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:593-605




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Miquel-Angel Galindo Martin 
Author-X-Name-First: Miquel-Angel Galindo 
Author-X-Name-Last: Martin 
Author-Name: Farhang Niroomand 
Author-X-Name-First: Farhang 
Author-X-Name-Last: Niroomand 
Title: Exchange rate sensitivity of the demand for money in Spain 
Abstract:
Journal: Applied Economics 
Pages: 607-612 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325598 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:607-612




Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Ho Kim 
Author-X-Name-First: Ki-Ho 
Author-X-Name-Last: Kim 
Title: US inflation and the dollar exchange rate: a vector error correction model 
Abstract:
  Many studies investigating the relation between inflation and exchange
 rates have found that exchange rates influenced inflation, while other
 studies have failed to do so or reported mixed results. These findings,
 however, might be spurious as the majority of the earlier investigations
 suffered from misspecifications of one kind or another. The current paper
 addresses the problem by employing an up-to-date and powerful
 cointegration method developed by Johansen (1988). In a system of
 five-equation vector error correction model, this paper finds that the US
 inflation, exchange rate, money supply, income, and interest rate are
 cointegrated. The cointegration analysis of the data covering the 1973-95
 period reveals that the dollar exchange rate has a significant negative
 impact on the inflation measured by the producer price index. It is
 further established that the exchange rate Granger causes the inflation. 
Journal: Applied Economics 
Pages: 613-619 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325606 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325606 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:613-619




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Buckley 
Author-X-Name-First: Peter 
Author-X-Name-Last: Buckley 
Author-Name: Jane Frecknall Hughes 
Author-X-Name-First: Jane Frecknall 
Author-X-Name-Last: Hughes 
Title: Transfer pricing and economic functions analysis: the Japanese paradigm 
Abstract:
  This paper examines the difficulties facing tax authorities in valuing
 cross-border flows from a transactions based analysis, in conditions where
 intangibles and services are important and where the multinational firm
 concerned is operating a system in which group-wide economic functions
 dominate decision making. Its key contention is that the economic
 functions of any entity should be examined in order to determine whether
 transactions analysis can be used to produce an acceptable value. This is
 done in the particular context of Japanese multinational enterprises and
 uses two hypothetical situations to demonstrate the inadequacy of
 transactions based analysis as a panacea for transfer pricing problems,
 especially for transfers of value involving intangibles and services,
 which it redefines into two categories, perceptible and imperceptible. 
Journal: Applied Economics 
Pages: 621-629 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325615 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325615 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:621-629




Template-Type: ReDIF-Article 1.0
Author-Name: Pan-Long Tsai 
Author-X-Name-First: Pan-Long 
Author-X-Name-Last: Tsai 
Author-Name: Kuo-Liang Wang 
Author-X-Name-First: Kuo-Liang 
Author-X-Name-Last: Wang 
Title: Competitiveness of international tourism in Taiwan: US versus Japanese visitors 
Abstract:
  This paper intends to identify the factors determining the relative
 competitiveness of Taiwan's international tourism among a group of seven
 East Asian countries. Using data on visitors from the USA and Japan, the
 major message which emerged from this study is that there are sharp
 differences between factors affecting US visitors and Japanese visitors.
 Specifically, we found: (1) the decline of Taiwan's market share in Japan
 has been mainly due to appreciation of NT dollars and changing
 preferences, whereas they are not crucial factors in the US market; (2)
 qualitative supply-side factors indeed could have decisive influences on
 the market share. However, their effect is again origin-dependent. The
 open-door policy of China is the only important determinant of Taiwan's
 competitiveness in the US market, while it has no impact on the Japanese
 visitors. 
Journal: Applied Economics 
Pages: 631-641 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325624 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325624 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:631-641




Template-Type: ReDIF-Article 1.0
Author-Name: Magnus Johannesson 
Author-X-Name-First: Magnus 
Author-X-Name-Last: Johannesson 
Author-Name: Bengt Liljas 
Author-X-Name-First: Bengt 
Author-X-Name-Last: Liljas 
Author-Name: Per-Olov Johansson 
Author-X-Name-First: Per-Olov 
Author-X-Name-Last: Johansson 
Title: An experimental comparison of dichotomous choice contingent valuation questions and real purchase decisions 
Abstract:
  In this paper the results of an experiment comparing the dichotomous
 choice (DC) contingentvaluation (CV) approach with real purchase decisions
 for a consumer good are reported. In addition to comparing the standard DC
 CV approach with real decisions, we also test the hypothesis that a more
 conservative interpretation of the DC approach, where only absolutely sure
 yes responses are counted as yes responses, correctly predicts real
 purchase decisions. The results show that the hypothetical yes responses
 overestimate the real yes responses and that the hypothetical absolutely
 sure yes responses underestimate the real yes responses. 
Journal: Applied Economics 
Pages: 643-647 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325633 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325633 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:643-647




Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Ferrante 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Ferrante 
Title: Induced technical change, adjustment costs and environmental policy modelling 
Abstract:
  In this paper I develop a neo-Schumpeterianmodel of induced technical
 change where firms/polluters determine their effort in environment-saving
 technical change. Two technological scenarios are distinguished depending
 on whether basic research is endogenous or exogenous. Building on this
 analytical setting, I show that in the presence of non-linear adjustment
 costs the choice of instruments of environmental policy should be tailored
 to the actual characteristics of the firms'/polluters' technological
 environment. Moreover, this analysis confirms that searching for efficient
 environmental policy mixes is more rewarding than focusing on single
 instruments, notably pollution taxation. 
Journal: Applied Economics 
Pages: 649-665 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325642 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:649-665




Template-Type: ReDIF-Article 1.0
Author-Name: Cam Donaldson 
Author-X-Name-First: Cam 
Author-X-Name-Last: Donaldson 
Author-Name: Andrew Jones 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Jones 
Author-Name: Tracy Mapp 
Author-X-Name-First: Tracy 
Author-X-Name-Last: Mapp 
Author-Name: Jan Abel Olson 
Author-X-Name-First: Jan Abel 
Author-X-Name-Last: Olson 
Title: Limited dependent variables in willingness to pay studies: applications in health care 
Abstract:
  The appropriate technique for econometric analysis of WTP (willingness to
 pay) data is an issue which has not been addressed in many studies of WTP
 for health and health care. This paper argues that, whether an open-ended
 question or a payment scale approach is adopted, the way in which WTP is
 recorded means that limited dependent variable models are more appropriate
 than standard regression analysis. Data from an open ended question on WTP
 for maternity care contain a large proportion of zeros and the evidence
 suggests that a two-part specification performs better than OLS or a
 standard Tobit model. If the payment scale method is adopted, our argument
 suggests that grouped data regression is an appropriate econometric
 technique. In practice, with data from a study in Northern Norway, the
 results from OLS and grouped data regression are broadly similar. 
Journal: Applied Economics 
Pages: 667-677 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325651 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325651 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:667-677




Template-Type: ReDIF-Article 1.0
Author-Name: Aki Kangasharju 
Author-X-Name-First: Aki 
Author-X-Name-Last: Kangasharju 
Title: beta convergence in Finland: regional differences in speed of convergence 
Abstract:
  This paper estimates &#x3b2; convergence across the 88 Finnish
 small-scale subregions from 1934 to 1993 using taxable per capita income
 as an indicator of income level. The results resemble those obtained in
 other studies for larger areas: regional &#x3b2; convergence in Finland
 has been about 2% per year in the long run, whereas in the short run
 &#x3b2; has tended to be unstable. Furthermore, this paper finds that it
 is possible to identify regional factors which tend to determine growth
 rates and steady-state income levels. These determinants are found to
 affect regions' individual &#x3b2; convergences. The steady-state level
 and speed of a region's individual &#x3b2; seems to be inversely related:
 the higher the &#x3b2; the lower the steady-state level. 
Journal: Applied Economics 
Pages: 679-687 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325660 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325660 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:679-687




Template-Type: ReDIF-Article 1.0
Author-Name: Voxi Heinrich Amavilah 
Author-X-Name-First: Voxi Heinrich 
Author-X-Name-Last: Amavilah 
Title: German aid and trade versus Namibian GDP and labour productivity 
Abstract:
  This paper examines the effects of German foreign aid to, and net trade
 with, Namibia on Namibia's recent (1985-95) economic performance. The
 analysis suggests significant benefits for Namibia from trade with and
 assistance from Germany. However, domestic capital is found to determine
 Namibian economic growth more than net trade with Germany and German
 foreign aid to Namibia, while the effect of German capital tends be larger
 than that of German aid. A need for direct foreign investment from Germany
 to Namibia is inferred. Two types of further investigations are required:
 a joint determination of economic growth, aid, trade and capital
 formation, and a disaggregation of German aid to Namibia with an analysis
 of its individual impacts compared with similar effects of aid from other
 donors. 
Journal: Applied Economics 
Pages: 689-695 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325679 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:689-695




Template-Type: ReDIF-Article 1.0
Author-Name: Yohane Khamfula 
Author-X-Name-First: Yohane 
Author-X-Name-Last: Khamfula 
Title: Influence of social learning on exchange rate policy in developing countries:a preliminary finding 
Abstract:
  By using a suitable econometric model, this study shows that beyond
 factors postulated by theorists 'social learning' is a very powerful
 phenomenon for guiding developing countries in their exchange rate policy.
 We introduce two variables that fairly encapsulate features of learning
 among neighbours. The new variables, together with those advanced in
 theory are then used to determine choice of a managed float by analysing
 1993 cross-section data from Asian developing countries. 
Journal: Applied Economics 
Pages: 697-704 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325688 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325688 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:697-704




Template-Type: ReDIF-Article 1.0
Author-Name: Nigel Driffield 
Author-X-Name-First: Nigel 
Author-X-Name-Last: Driffield 
Author-Name: Max Munday 
Author-X-Name-First: Max 
Author-X-Name-Last: Munday 
Title: The impact of foreign direct investment on UK manufacturing: is there a profit squeeze in domestic firms? 
Abstract:
  This paper examines the extent to which foreign direct investment (FDI)
 in selected UK manufacturing sectors has an impact on reported profits in
 domestic firms. Foreign manufacturing firms are characterized by
 relatively high labour productivity and low wage shares. Entry by foreign
 firms not only impacts on domestic market shares, but also on domestic
 cost conditions. As a result, profitability in the indigenous sector may
 be reduced. There are a number of policy implications of this analysis
 which are explored. 
Journal: Applied Economics 
Pages: 705-709 
Issue: 5 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:705-709




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Vogt 
Author-X-Name-First: Michael 
Author-X-Name-Last: Vogt 
Author-Name: Chutima Wittayakorn 
Author-X-Name-First: Chutima 
Author-X-Name-Last: Wittayakorn 
Title: Determinants of the demand for Thailand's exports of tourism 
Abstract:
  We investigate the effects of world income and the relative price of
 tourism in Thailand on Thailand's exports of tourism. In contrast to
 previous studies, we test for stationarity and cointegration of the
 variables of the model. We find that the variables are not stationary in
 level form, but they are cointegrated. Our estimate of the relative price
 elasticity of demand for Thailand's exports of tourism is - 1.199 in the
 short run and - 0.891 in the long run. The corresponding estimates for the
 income elasticity of demand are 1.926 and 2.342 respectively. However,
 only the short-run price elasticity of demand is significantly different
 from zero. 
Journal: Applied Economics 
Pages: 711-715 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325417 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325417 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:711-715




Template-Type: ReDIF-Article 1.0
Author-Name: Annette Tomal 
Author-X-Name-First: Annette 
Author-X-Name-Last: Tomal 
Title: The relationship between hospital mortality rates, and hospital, market and patient characteristics 
Abstract:
  This study analyses the relationship between hospital outcome,
 specifically mortality rates, and various hospital and market
 characteristics. The data are for all general acute-care hospitals in
 California in 1991 that had at least 50 Medicare cases selected by the
 Health Care Financing Administration (HCFA) for their computation of 1991
 observed and predicted mortality rates. The dependent variable was
 constructed from these mortality rates. Hospital and market
 characteristics were obtained from California's Office of Statewide Health
 Planning and Development 1991 tapes, the American Hospital Association's
 annual 1991 report, 1990 Census data, and HCFA's 1991 Medicare Hospital
 Mortality Information Report. Highly significant results (p &#x3c; 0.01)
 were found for three of the predictor variables: improved mortality rates
 were associated with a lower proportion of Medicaid patients, with a
 larger market, and with a higher prior-year profit margin. Other factors
 that contributed to improved mortality rates (p &#x3c; 0.05 or 0.10) were
 more concentrated hospital markets, a lower percentage of HMO patients,
 and a higher percentage of residents with at least a Bachelor's degree.
 Characteristics without significant coefficients were hospital size, the
 percentage of residents below poverty level, more 'high-tech' services,
 the proportion of Medicare patients, having a residency programme, and
 membership in COTH (Council of Teaching Hospitals). 
Journal: Applied Economics 
Pages: 717-725 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325426 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325426 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:717-725




Template-Type: ReDIF-Article 1.0
Author-Name: David Ault 
Author-X-Name-First: David 
Author-X-Name-Last: Ault 
Author-Name: Gilbert Rutman 
Author-X-Name-First: Gilbert 
Author-X-Name-Last: Rutman 
Title: Factors affecting levels and growth rates in the wage rates of women: evidence from nursing 
Abstract:
  Using data from two surveys of nurses (1981 and 1989), the study examines
 the factors affecting the levels and growth rates in the wage rates paid
 to women, especially married women, who were licensed as Registered
 Nurses. Our results indicate that the influence of such household
 characteristics as marital status, age and number of children, and
 spouse's characteristic, tended to diminish over the 1980s. The evidence
 further suggests that the penalties for frequent switches in employment
 state were larger at the end of the decade than at the beginning. Further,
 wages paid to nurses with baccalaureates were statistically the same as
 those paid to nurses with lesser formal education. The return to the
 baccalaureate appears to be in the form of the higher wages and salaries
 earned by those who obtain post-baccalaureate degrees. 
Journal: Applied Economics 
Pages: 727-739 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325435 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325435 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:727-739




Template-Type: ReDIF-Article 1.0
Author-Name: Xin Meng 
Author-X-Name-First: Xin 
Author-X-Name-Last: Meng 
Title: Gender occupational segregation and its impact on the gender wage differential among rural-urban migrants: a Chinese case study 
Abstract:
  Since the late 1980s, massive rural - urban migration in China has
 attracted considerable attention from economists and policymakers, both
 within and outside China. One of the most striking features of rural -
 urban migration is that job attainment among the migrants differs
 considerably between males and females. It is of great interest to know
 the reasons for this difference and, more importantly, whether gender
 occupational segregation has a large impact on the gender wage
 differential among migrants. This paper examines these issues using data
 on 1504 migrants collected in Jinan city, Shandong province. It is found
 that gender occupational segregation in this sector is mainly due to the
 unequal treatment of male and female attributes in occupational assignment
 and that this contributes very significantly to the gender wage
 differential among migrants. A comparison with another study on China's
 rural industrial labour market is made, which suggest that
 intra-occupational gender wage discrimination is lower in the labour
 market for rural - urban migrants than in the labour market in the rural
 industrial sector. 
Journal: Applied Economics 
Pages: 741-752 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325444 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:741-752




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Arnade 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Arnade 
Author-Name: Daniel Pick 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Pick 
Author-Name: Munisamy Gopinath 
Author-X-Name-First: Munisamy 
Author-X-Name-Last: Gopinath 
Title: Testing oligopoly power in domestic and export markets 
Abstract:
  Empirical applications of testing oligopoly power in different industries
 are based on the 'new empirical industrial organization' (NEIO) approach.
 Parallel to this approach, theoretical and empirical applications to
 testing oligopoly power in international trade have also emerged. A
 shortcoming of these approaches is that they do not account for the
 possibility that an industry, which is active in the domestic and
 international markets, may exhibit oligopoly power in both markets. We
 extend the existing models by simultaneously accounting for domestic and
 international components of four industries in testing for oligopoly
 power. We found that in some cases, industries exhibit oligopoly behaviour
 in either or both markets. 
Journal: Applied Economics 
Pages: 753-760 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325453 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325453 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:753-760




Template-Type: ReDIF-Article 1.0
Author-Name: D. M. Nachane 
Author-X-Name-First: D. M. 
Author-X-Name-Last: Nachane 
Author-Name: Prasad Ranade 
Author-X-Name-First: Prasad 
Author-X-Name-Last: Ranade 
Title: India's trade balance in the 1980s an econometric analysis 
Abstract:
  The paper is an examination of India's trade balance in the 1980s. The
 approach attempted is of examining the bilateral trade balances of India
 with nine trading partners from the non-communist bloc. The long-run
 equilibrium relations are studied via two VAR models in Johansen's
 multivariate cointegration framework. Five hypotheses of interest are
 singled out for attention. The nominal and real exchange rates
 consistently emerge as important influences on the trade balance. However,
 as the exchange rates fail weak exogeneity tests, policy implications are
 not clear cut. 
Journal: Applied Economics 
Pages: 761-774 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325462 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:761-774




Template-Type: ReDIF-Article 1.0
Author-Name: Hunter Humphries 
Author-X-Name-First: Hunter 
Author-X-Name-Last: Humphries 
Author-Name: Stephen Knowles 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Knowles 
Title: Does agriculture contribute to economic growth? Some empirical evidence 
Abstract:
  This paper augments the Solow - Swan model of economic growth to include
 the share of the labour force working outside the agricultural sector as a
 labour augmenting variable in the aggregate production function. The
 cross-country empirical results suggest that transferring labour from the
 agricultural sector to other sectors of the economy is associated with
 economic growth. This result is robust to using instrumental variables to
 control for the potential endogeneity of the relative size of the
 agricultural labour force. 
Journal: Applied Economics 
Pages: 775-781 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325471 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325471 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:775-781




Template-Type: ReDIF-Article 1.0
Author-Name: Kornelius Kraft 
Author-X-Name-First: Kornelius 
Author-X-Name-Last: Kraft 
Title: An evaluation of active and passive labour market policy 
Abstract:
  This paper reports results of an empirical study on the effectiveness of
 labour market policy. Data from Austria, France, Germany, Great Britain,
 Sweden and the United States are used to apply a simultaneous equation
 model with wages and employment being the endogenous variables. In order
 to explain employment, the amount of unemployment benefits per unemployed
 (passive labour market policy) and payment for wage subsidies and training
 per employed and unemployed person (active labour market policy) are used
 in addition to real wages and output. Wages and output have their expected
 impact on total employment. It turns out that passive labour market policy
 has a negative, and active labour market measures a positive, effect on
 the number of persons employed. 
Journal: Applied Economics 
Pages: 783-793 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325480 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325480 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:783-793




Template-Type: ReDIF-Article 1.0
Author-Name: Chee-Ruey Hsieh 
Author-X-Name-First: Chee-Ruey 
Author-X-Name-Last: Hsieh 
Title: Health risk and the decision to quit smoking 
Abstract:
  This study contributes to the understanding of the decision to quit
 smoking by taking into account the learning of new risk information. The
 specific hypothesis tested is that smokers learn new risk information and
 hence create an incentive to quit from their own experience. Probit models
 are estimated for the decision to quit smoking based on longitudinal data
 obtained from Taiwan. It is shown that health risk, measured by the
 observed change in health status over the period between two surveys, has
 a relatively substantial positive effect on the probability of quitting
 smoking. In addition, the results indicate that schooling has a
 significantly positive effect on the probability of quitting. These
 findings are consistent with the predictions of a Bayesian learning
 framework and suggest that the risk information obtained from individual
 experience, which is the sole source of information available to smokers
 in most developing countries, plays the same role that public information
 does. 
Journal: Applied Economics 
Pages: 795-804 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325499 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325499 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:795-804




Template-Type: ReDIF-Article 1.0
Author-Name: Shane Bonetti 
Author-X-Name-First: Shane 
Author-X-Name-Last: Bonetti 
Title: Distinguishing characteristics of degrees of success and failure in economic sanctions episodes 
Abstract:
  This paper uses 104 episodes from the Hufbauer et al. (1985, 1990)
 dataset to examine the correlates of classes of outcomes of economic
 sanctions. The parsimonious equations presented identify the
 characteristics of sanctions episodes conducive to success rather than
 marginal success, and the characteristics productive of failure rather
 than marginal failure. Failure is most likely if there is significant
 third party assistance to the target, and if the pre-existing trade
 linkage between sender and target is small. Success is most easily
 achieved when the objective is not classified as 'modest', and when
 pre-sanction relations between sender and target are cordial or neutral.
 The equations presented overcome data and methodological flaws of earlier
 studies, exhibit reasonable predictive accuracy, and satisfy a battery of
 tests of statistical significance, hypothesized coefficient sign, goodness
 of fit, high likelihood and informational efficiency. 
Journal: Applied Economics 
Pages: 805-813 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325507 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325507 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:805-813




Template-Type: ReDIF-Article 1.0
Author-Name: Nadeem Burney 
Author-X-Name-First: Nadeem 
Author-X-Name-Last: Burney 
Title: Economies of scale and utilization in electricity generation in Kuwait 
Abstract:
  Cost structure of electricity generation in Kuwait has been examined,
 with specific focus on the economies of scale and utilization. This has
 been done by estimating a translog variable-cost function using
 time-series data covering the period from 1965 to 1990. The results
 indicate the existence of diseconomies of scale in the generation of
 electricity, but no economies or diseconomies of utilization. 
Journal: Applied Economics 
Pages: 815-819 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325516 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325516 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:815-819




Template-Type: ReDIF-Article 1.0
Author-Name: Basanta Pradhan 
Author-X-Name-First: Basanta 
Author-X-Name-Last: Pradhan 
Author-Name: A. Subramanian 
Author-X-Name-First: A. 
Author-X-Name-Last: Subramanian 
Title: Money and prices : some evidence from India 
Abstract:
  The objective of this paper is to examine the long-run relationship
 between supply of money and prices. The prices considered are wholesale
 price and consumer price indices for industrial workers, urban non-manual
 workers and agricultural labourers. Using the null hypothesis of
 cointegration, it is shown that the supply of money and consumer price
 indices for urban non-manual workers and agricultural labourers are
 cointegrated in the long-run. Both the prices - namely, urban non-manual
 workers and agricultural labourers - form a stable relationship with money
 supply in the long-run. 
Journal: Applied Economics 
Pages: 821-827 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325525 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:821-827




Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Cohen 
Author-X-Name-First: Marcel 
Author-X-Name-Last: Cohen 
Title: Linking price dispersion to product differentiation - incorporating aspects of customer involvement 
Abstract:
  The fact that product differentiation can cause price dispersion - price
 differences between alternative brands of what are seemingly identical
 products - is not surprising. Our contribution is to establish not
 whether, but how, it does so. We explore the mechanisms involved using a
 variant of Hotelling's market line model. We make no explicit assumptions
 about the functional form of the consumer's utility function so that we
 derive a general relationship between price dispersion and product
 differentiation. We then survey 16 product groups to identify the
 functional form of the consumer's utility function that allows our result
 to best fit real-world circumstances. We show that it is not product
 differentiation per se that causes price dispersion but rather the
 presence of a differential advantage of one product over another. More
 importantly, we show that the impact of a differential advantage in
 causing price dispersion is amplified (or attenuated) by an aspect of
 customer involvement in a purchase. The greater the customer involvement
 in a purchase the more amplified is the impact of product differentiation
 on price dispersion but this is sensitive only to logarithmic (roughly,
 order of magnitude) changes in customer involvement. 
Journal: Applied Economics 
Pages: 829-835 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325534 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325534 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:829-835




Template-Type: ReDIF-Article 1.0
Author-Name: Khalifa Ghali 
Author-X-Name-First: Khalifa 
Author-X-Name-Last: Ghali 
Title: Public investment and private capital formation in a vector error-correction model of growth 
Abstract:
  Most of the literature dealing with the impact of public investment on
 private capital formation and economic growth focuses either on
 cross-section or static analysis. However, investigation of the long-run
 dynamic interactions between private and public investment and growth is
 much more insightful for public policy aiming at the determination of the
 appropriate size of its public sector. This paper extends the model of
 Barth and Cordes (1980) and uses multivariate cointegration techniques to
 develop a vector error-correction model useful for investigating the
 long-run effects of public investment on private capital formation and
 economic growth. We apply our methodology to a developing country
 implementing the IMF debt-stabilization programmes and show how, in this
 country, public investment is having a negative short-run impact on
 private investment and a negative long-run impact on both private
 investment and economic growth. 
Journal: Applied Economics 
Pages: 837-844 
Issue: 6 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325543 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325543 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:837-844




Template-Type: ReDIF-Article 1.0
Author-Name: Fong-Lin Chu 
Author-X-Name-First: Fong-Lin 
Author-X-Name-Last: Chu 
Author-Name: Jack Hou 
Author-X-Name-First: Jack 
Author-X-Name-Last: Hou 
Title: An extension of currency substitution into the near monies framework: a case for Canada 
Abstract:
  This paper attempts to estimate the nearness of near monies in Canada
 including foreign monetary assets, i.e. US dollars. The results enable us
 to make a statement about how substitutable US dollars are in the Canadian
 private asset portfolio. This brought the event of currency substitution
 into the near money framework and we found US dollars are far from good
 substitutes for Canadian narrowly defined money. Our analysis further
 provides a reconciliation of results obtained by Miles (1978), Bordo and
 Choudhri (1982), Husted (1984) and Ghosh (1989). 
Journal: Applied Economics 
Pages: 845-851 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325273 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325273 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:845-851




Template-Type: ReDIF-Article 1.0
Author-Name: Abul Masih 
Author-X-Name-First: Abul 
Author-X-Name-Last: Masih 
Author-Name: Rumi Masih 
Author-X-Name-First: Rumi 
Author-X-Name-Last: Masih 
Title: A fractional cointegration analysis of the long-run relationship between black and official foreign exchange rates: the case of the Brazilian cruzeiro 
Abstract:
  This paper applies a relatively new but generalized concept of fractional
 cointegration to shed some light on the validity of a long-run
 relationship between monthly black and official US dollar rates of the
 Brazilian cruzeiro. An investigation of the stochastic properties of these
 rates reveals that, while the relationship is not cointegrated in their
 logs, they appear to be fractionally cointegrated if we allow for mean
 reverting processes that are CI (1, d) with 0&#x3c; d &#x3c; 1. The paper
 demonstrates that relaxing the condition that the residual from the
 cointegration equation must be a I (0) process, captures a much wider
 class of mean-reversion behaviour. Furthermore, an analysis of the
 short-run dynamics propelling the long-run relationship tends to imply
 that although the official rate influences the changes in the black rate,
 this is purely over the short-run. In the longer term, the black rate is
 found to be the initial receptor of any exogenous shock to the equilibrium
 and it is the official exchange rate that bears the brunt of short-run
 adjustment to re-establish the long-run equilibrium relationship. The
 approach illustrated in this paper is shown to hold enormous potential for
 tests of mean reversion involving hypotheses popular to economic and
 financial research in general, where the dynamics of time-series data are
 under constant scrutiny. 
Journal: Applied Economics 
Pages: 853-861 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325282 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325282 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:853-861




Template-Type: ReDIF-Article 1.0
Author-Name: Juha Kettunen 
Author-X-Name-First: Juha 
Author-X-Name-Last: Kettunen 
Title: Method of pay in Finnish industry 
Abstract:
  In this paper, a dynamic economic model of the method of pay is derived
 to serve as a background to an empirical study. The model gives, for
 example, a prediction that employees who have a short attachment to a firm
 are apt to engage in incentive work. Special attention is paid to
 unobserved heterogeneity across workers in a logit model of the method of
 pay. A new estimator based on a small variance approximation of unobserved
 heterogeneity is derived. 
Journal: Applied Economics 
Pages: 863-873 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325291 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325291 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:863-873




Template-Type: ReDIF-Article 1.0
Author-Name: Joaquin Millan 
Author-X-Name-First: Joaquin 
Author-X-Name-Last: Millan 
Author-Name: Natalia Aldaz 
Author-X-Name-First: Natalia 
Author-X-Name-Last: Aldaz 
Title: Agricultural productivity of the Spanish regions: a non-parametric Malmquist analysis 
Abstract:
  Productivity growth for the agricultural sectors of the 17 Spanish
 regions over the period 1977-88 is studied using non-parametric
 programming techniques. Productivity changes based on conventional inputs
 are linked to other economic, geographic and institutional issues. Average
 technical change in the Spanish regions grew at an annual rate of 2.9%,
 but with great regional variation. This paper presents a clear
 characterization of areas with greater technical progress, and the regions
 with technical regress. 
Journal: Applied Economics 
Pages: 875-884 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325309 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325309 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:875-884




Template-Type: ReDIF-Article 1.0
Author-Name: Colin Allitt 
Author-X-Name-First: Colin 
Author-X-Name-Last: Allitt 
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Title: Consumption patterns as a measure of capital mobility: evidence from some APEC countries 
Abstract:
  Consumption patterns are used to measure capital mobility within the APEC
 region, both on a bilateral and multilateral basis. Two models are
 estimated by IV, SUR and OLS using quarterly data for four countries: the
 US, Japan, Canada and Australia. The results show that the hypothesis of
 perfect capital mobility is rejected, and some results even indicate
 autarky. It is argued, however, that the hypothesis of perfect capital
 mobility is unreasonable and that the consumption criterion is
 inappropriate because it assumes real interest equalization. 
Journal: Applied Economics 
Pages: 885-891 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325318 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325318 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:885-891




Template-Type: ReDIF-Article 1.0
Author-Name: Diansheng Dong 
Author-X-Name-First: Diansheng 
Author-X-Name-Last: Dong 
Author-Name: Atanu Saha 
Author-X-Name-First: Atanu 
Author-X-Name-Last: Saha 
Title: He came, he saw, (and) he waited: an empirical analysis of inertia in technology adoption 
Abstract:
  The innovation adoption literature has focused primarily on a producer's
 decision of whether and how much to adopt. An equally pertinent question
 is when to adopt, because in the case of new technologies it often 'pays
 to wait' for more information. We propose a double-limit hurdle model to
 analyse adoption intensity and inertia in the context of a divisible
 technology. The proposed framework incorporates probit or Tobit models as
 testable special cases. A maximum likelihood estimation framework is set
 out and generalized to account for heteroscedastic errors. The empirical
 analysis, which uses household-level data from India's semi-arid tropics,
 provides new insights into the factors influencing adoption inertia and
 intensity. 
Journal: Applied Economics 
Pages: 893-905 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325327 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325327 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:893-905




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Lee 
Author-X-Name-First: Michael 
Author-X-Name-Last: Lee 
Author-Name: Ritchard Longmire 
Author-X-Name-First: Ritchard 
Author-X-Name-Last: Longmire 
Author-Name: Laszlo Matyas 
Author-X-Name-First: Laszlo 
Author-X-Name-Last: Matyas 
Author-Name: Mark Harris 
Author-X-Name-First: Mark 
Author-X-Name-Last: Harris 
Title: Growth convergence: some panel data evidence 
Abstract:
  This paper implements a panel data approach of the Solow model to study
 the phenomenon of growth convergence for 22 OECD countries. It shows that
 although the derived estimable Solow model is probably underspecified from
 an econometric point of view, it is still possible to conclude that there
 is a likely convergence to a steady state rate of about 2-4%. 
Journal: Applied Economics 
Pages: 907-912 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325336 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325336 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:907-912




Template-Type: ReDIF-Article 1.0
Author-Name: Brian Chezum 
Author-X-Name-First: Brian 
Author-X-Name-Last: Chezum 
Author-Name: John Garen 
Author-X-Name-First: John 
Author-X-Name-Last: Garen 
Title: Are union productivity effects overestimated?: evidence from coal mining 
Abstract:
  The empirical literature of the influence of unions on productivity is
 extended by considering the effect in an industry with heterogeneous
 firms. Recent theoretical papers suggest that, in such an industry, unions
 will tend to organize the exogenously 'more productive' firms. Thus, a
 spurious correlation between unions and productivity may emerge. We test
 this hypothesis by estimating production functions for coal with data from
 Eastern Kentucky underground coal mines. The aspect of mine heterogeneity
 that we focus on is the width of the mine's seam of coal. Wider seams
 increase productivity. Empirically, we find that unions disproportionately
 organize mines with wider seams and this accounts for the positive
 relationship between unions and productivity observed in our data. In
 fact, once seam thickness is accounted for, the estimated effect of unions
 on productivity is negative. 
Journal: Applied Economics 
Pages: 913-918 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325345 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325345 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:913-918




Template-Type: ReDIF-Article 1.0
Author-Name: Almas Heshmati 
Author-X-Name-First: Almas 
Author-X-Name-Last: Heshmati 
Title: Efficiency measurement in rotating panel data 
Abstract:
  Rotating panel data are used with estimation of stochastic production
 frontier. The model can be viewed as a generalization of the regular
 production function estimation that accommodates technical inefficiency as
 well as firm heterogeneity. In particular, while estimating technical
 efficiency for each firm over time we control for firmspecific effects and
 separate them from technical inefficiency. Estimation of the model is
 considered in two steps. In the first step we estimate parameters of the
 underlying productionfunction using generalized least squares methodwhich
 are then used in the estimation of technical efficiency in the second
 step. As an empirical application we used rotating data on 1425 Swedish
 dairy farms observed during 1976-1988. The mean technical efficiency of
 these farms is found to be 94.5% and 16% of the farms are fully efficient.
 Evidence of technical regress about 1% per annum is observed during 1976
 to 1984. 
Journal: Applied Economics 
Pages: 919-930 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325354 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:919-930




Template-Type: ReDIF-Article 1.0
Author-Name: Sulayman Al-Qudsi 
Author-X-Name-First: Sulayman 
Author-X-Name-Last: Al-Qudsi 
Title: Labour participation of Arab women: estimates of the fertility to labour supply link 
Abstract:
  Research conducted in this paper has two objectives. First, to review
 recent aggregate trends in Arab female employment and its link to
 fertility. Second, to apply a two-step econometric model to micro data
 sets of four Arab countries in order to estimate the impact of fertility
 and its correlates on the labour supply of Arab women. The model combines
 a Poisson fertility count function with a Probit binary function. We find
 that the two-step-modelling framework provides important insights about
 the fertility - participation link. The Poisson maximum likelihood
 estimation demonstrates that age at marriage, women's education, infant
 mortality and preference for male offspring are important determinants of
 fertility. In all countries examined, our findings confirm that fertility
 produces a strong negative influence on women's labour participation.
 Therefore, policies that are designed to influence participation will be
 more effective if consistent companion fertility policies are in place. 
Journal: Applied Economics 
Pages: 931-941 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325363 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:931-941




Template-Type: ReDIF-Article 1.0
Author-Name: Kang Park 
Author-X-Name-First: Kang 
Author-X-Name-Last: Park 
Title: Distribution and growth: cross-country evidence 
Abstract:
  An endogenous growth model is presented to examine the determinants of
 economic growth and income distribution and their relationship. Three
 major findings from a cross-country analysis of 45 countries are: (1) a
 higher level of educational attainment of the labour force has an
 equalizing effect on income distribution, while the larger the dispersion
 of schooling among the labour force, the greater the income inequality;
 (2) human capital investment as well as physical capital investment are
 significant factors contributing to economic growth; and (3) income
 inequality has a negative effect on economic growth, supporting the
 existence of a complementary relationship between equity and growth. 
Journal: Applied Economics 
Pages: 943-949 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:943-949




Template-Type: ReDIF-Article 1.0
Author-Name: Ivar Gaasland 
Author-X-Name-First: Ivar 
Author-X-Name-Last: Gaasland 
Author-Name: Erling Vardal 
Author-X-Name-First: Erling 
Author-X-Name-Last: Vardal 
Title: Tariff or quota protection-a case study of the Norwegian apple market 
Abstract:
  Tariffs and quotas are alternative trade instruments. In most cases it
 has been shown that the use of tariffs results in a higher national
 welfare than the use of quotas. Most of the research in this field has
 been purely theoretical. This paper aims to give an empirical
 contribution. Referring to the Norwegian apple market, we analyse the
 effects of tariffs and quotas. A tariff system is estimated to be slightly
 more efficient than a quota system (+ 2%). However, the distributional
 effects are substantial. Wholesalers and importers are main gainers in a
 quota system, while consumers and farmers are losers. 
Journal: Applied Economics 
Pages: 951-957 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325381 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325381 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:951-957




Template-Type: ReDIF-Article 1.0
Author-Name: Sudeep Haldar 
Author-X-Name-First: Sudeep 
Author-X-Name-Last: Haldar 
Author-Name: Vithala Rao 
Author-X-Name-First: Vithala 
Author-X-Name-Last: Rao 
Title: A micro-analytic threshold model for the timing of first purchases of durable goods 
Abstract:
  A micro-analytic threshold model to describe the timing of household
 purchases of consumer durable goods is developed and tested. The model
 incorporates unobserved heterogeneity via a generalized gamma distribution
 and accounts for time varying covariates. Further, we employ estimation
 methods applicable or purchase data observed at periodic intervals of
 time. The model outperforms other competing models for predicting the
 timing of purchase of durable goods in terms of fit and predictive
 ability. In particular, this model outperforms the logit model and the
 diffusion model. The generalized gamma timing model predicts well the time
 to purchase the durable good; we show how it can be employed for
 micro-segmentation of households. Several research directions and
 applications are described. 
Journal: Applied Economics 
Pages: 959-974 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325390 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325390 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:959-974




Template-Type: ReDIF-Article 1.0
Author-Name: Haiyan Song 
Author-X-Name-First: Haiyan 
Author-X-Name-Last: Song 
Author-Name: Peter Romilly 
Author-X-Name-First: Peter 
Author-X-Name-Last: Romilly 
Author-Name: Xiaming Liu 
Author-X-Name-First: Xiaming 
Author-X-Name-Last: Liu 
Title: The UK consumption function and structural instability: improving forecasting performance using a time-varying parameter approach 
Abstract:
  Previous studies indicate that the poor forecasting performance of
 constant parameter UK consumption expenditure models is caused by
 structural instability in the underlying data generating process.
 Typically, this instability is removed by reparameterization within the
 constant parameter framework. An alternative modelling strategy is to
 allow some, or all, of the parameters to vary over time. A UK non-durable
 consumption expenditure model with time-varying parameters is developed,
 based on the permanent income hypothesis of Friedman (1957). This model
 takes into account temporal changes in the average and marginal
 propensities to consume. The variation in the parameter estimates is given
 an economic interpretation in terms of the influence of omitted variables,
 namely UK financial liberalization and expectational changes. The
 forecasting performance of this model is superior to that of two widely
 used constant parameter models. Further tests show that, even if these
 constant parameter models are respecified as time varying parameter
 models, the authors' model still retains a superior forecasting
 performance. 
Journal: Applied Economics 
Pages: 975-983 
Issue: 7 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325408 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325408 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:975-983




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Flores De Frutos 
Author-X-Name-First: Rafael Flores 
Author-X-Name-Last: De Frutos 
Author-Name: Mercedes Gracia-Diez 
Author-X-Name-First: Mercedes 
Author-X-Name-Last: Gracia-Diez 
Author-Name: Teodosio Perez 
Author-X-Name-First: Teodosio 
Author-X-Name-Last: Perez 
Title: Public capital stock and economic growth: an analysis of the Spanish economy 
Abstract:
  The objective of this paper is to evaluate the short- and long-term
 effects of public investment in infrastructure on aggregate output, labour
 and capital formation in the private sector. The problem is analysed in a
 dynamic multivariate framework, which allows for explicit consideration of
 feedback among all the variables. This approach generalizes the current
 literature, which relies on a single-equation model to estimate production
 functions and implicitly assumes the absence of feedback relationships.
 For the Spanish economy, our results suggest positive long-term effects of
 public investment on the private sector variables. 
Journal: Applied Economics 
Pages: 985-994 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325156 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325156 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:985-994




Template-Type: ReDIF-Article 1.0
Author-Name: George Ford 
Author-X-Name-First: George 
Author-X-Name-Last: Ford 
Author-Name: John Jackson 
Author-X-Name-First: John 
Author-X-Name-Last: Jackson 
Title: On the interpretation of policy effects from estimates of simultaneous systems of equations 
Abstract:
  The purpose of this paper is threefold: first, we warn analysts against
 the use of structural coefficient estimates alone for deducing
 quantitative inferences concerning many policy experiments. Second, we
 offer a potential solution to the problem by proposing a mutatis mutandis
 approach to deducing the 'full effect' of a policy change on the
 endogenous variables of the model. Finally, we show that this approach
 yields consistent estimates of the reduced form parameters, the true
 solution to the difficulty. An illustration is provided. 
Journal: Applied Economics 
Pages: 995-999 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325165 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325165 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:995-999




Template-Type: ReDIF-Article 1.0
Author-Name: Alfons Oude Lansink 
Author-X-Name-First: Alfons Oude 
Author-X-Name-Last: Lansink 
Author-Name: Geert Thijssen 
Author-X-Name-First: Geert 
Author-X-Name-Last: Thijssen 
Title: Testing among functional forms: an extension of the Generalized Box-Cox formulation 
Abstract:
  This paper uses the Generalized Box - Cox framework and Double Length
 artificial Regression to test whether different specifications of the
 profit function are able to mimic the technology underlying panel data of
 Dutch arable farms for the period 1970 - 1988. To this end, a linear GBC
 is developed that includes the Generalized Leontief, Normalized Quadratic
 and Symmetric Normalized Quadratic as special cases. A Lagrange multiplier
 test that avoids estimation of the linear GBC is used to test (subsets of)
 functional forms against (simplifications of) the linear GBC. Functional
 form results are also evaluated in terms of regularity conditions,
 parameter significance and reasonability of elasticities. On this data
 set, the NQ outperforms the other forms on most criteria. 
Journal: Applied Economics 
Pages: 1001-1010 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325174 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325174 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1001-1010




Template-Type: ReDIF-Article 1.0
Author-Name: Frederick Joutz 
Author-X-Name-First: Frederick 
Author-X-Name-Last: Joutz 
Author-Name: H. O. Stekler 
Author-X-Name-First: H. O. 
Author-X-Name-Last: Stekler 
Title: Data revisions and forecasting 
Abstract:
  The relationship between two sets of GNP data, the earliest and the first
 revisions, is examined. This comparison enables us to determine whether
 the early numbers are valuable to forecasters. The analysis uses two
 methods. The first is based on a technique which has been used to evaluate
 whether financial and economic forecasts are valuable to the users. The
 second approach uses time series techniques. We conclude that revisions to
 the 15-day estimates that occur when the 45-day numbers are released are
 successful and that the 15-day numbers are useful to forecasters. 
Journal: Applied Economics 
Pages: 1011-1016 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325183 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325183 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1011-1016




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Bohl 
Author-X-Name-First: Martin 
Author-X-Name-Last: Bohl 
Author-Name: Friedrich Sell 
Author-X-Name-First: Friedrich 
Author-X-Name-Last: Sell 
Title: Demand for cash balances in Germany: theoretical underpinnings and empirical evidence 
Abstract:
  The purpose of this paper is to develop and test a cash-in-advance model
 of an open economy. Following the contribution of Bohn (1991) and using
 intertemporal balance of payments theory we set up a currency demand
 function with real consumption expenditure, the foreign interest rate and
 exchange rate expectations as the core explaining variables. We test the
 model with the aid of the econometric techniques proposed by Hylleberg,
 Engle, Granger and Yoo (1990) and Engle, Granger, Hylleberg and Lee (1993)
 relying on quarterly seasonally unadjusted data for Germany in the period
 1960: 1 to 1993: 4. The findings reported in the paper support the
 suggestions made by the theoretical model. 
Journal: Applied Economics 
Pages: 1017-1026 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325192 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325192 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1017-1026




Template-Type: ReDIF-Article 1.0
Author-Name: Dale Truett 
Author-X-Name-First: Dale 
Author-X-Name-Last: Truett 
Author-Name: Lila Truett 
Author-X-Name-First: Lila 
Author-X-Name-Last: Truett 
Title: A cost function analysis of the Mexican nonelectrical machinery industry 
Abstract:
  This paper investigates the existence of economies of scale in the
 Mexican nonelectrical machinery industry as well as the direct and cross
 price elasticities of demand for its inputs (capital, labour, and
 intermediate goods) by estimating a translog cost function. There is
 evidence that the industry exhibits economies of scale but that
 technological change has not significantly affected cost. Direct demand
 elasticities for the inputs are negative and less than one, but capital
 displays a higher price elasticity of demand than does labour or
 intermediate goods. In general, the input cross price elasticities
 indicate that they are substitutes. The results suggest that in the early
 years of the North American Free Trade Agreement, expansion of the
 industry may increase its competitiveness and generate some employment.
 The best near-term prospects for growth in the industry appear to be
 through foreign investment or joint ventures oriented toward both exports
 and the procurement activities of government and government-related
 entities in Mexico. 
Journal: Applied Economics 
Pages: 1027-1035 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325200 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325200 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1027-1035




Template-Type: ReDIF-Article 1.0
Author-Name: David Smant 
Author-X-Name-First: David 
Author-X-Name-Last: Smant 
Title: Real business cycle theory and monetary policy: the multiplier approach 
Abstract:
  According to real business cycle theory the money multiplier explains
 money-output correlations because nominal policy is impotent. This paper
 re-examines the key assumptions of the multiplier approach and presents
 empirical evidence for five countries. The main conclusions are as
 follows. First, base money does Granger-cause economic activity. Second,
 actual operating procedures of monetary authorities prevent
 orthogonalization of base money and multiplier changes. The distinction
 between real and nominal aspects of monetary policy is therefore not very
 helpful. 
Journal: Applied Economics 
Pages: 1037-1053 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325219 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325219 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1037-1053




Template-Type: ReDIF-Article 1.0
Author-Name: Jordan Shan 
Author-X-Name-First: Jordan 
Author-X-Name-Last: Shan 
Author-Name: Fiona Sun 
Author-X-Name-First: Fiona 
Author-X-Name-Last: Sun 
Title: On the export-led growth hypothesis: the econometric evidence from China 
Abstract:
  The export-led growth hypothesis is tested by estimating an augmented
 growth equation on the basis of times series data from China. The Granger
 no-causality procedure developed by Toda and Yamamoto (Journal of
 Econometrics, 66, 1995) was applied to test the causality link between
 exports and economic growth in a VAR system. Three distinct features in
 this paper stand out compared to earlier studies on China: first, we have
 gone beyond the traditional two-variable relationship by building a VAR
 model in the production function context to avoid a possible specification
 bias; second, we follow Riezman, Whiteman and Summers (Empirical
 Economics, 21, 1996) to test the export-led growth hypothesis while
 controlling for the growth of imports to avoid producing a spurious
 causality result; third, we test the sensitivity of causality test results
 under different lag structures along with the choice of optimal lags; in
 particular, the methodology developed by Toda and Yamamoto (1995) is
 expected to improve the standard F -statistics in the causality test
 process. The results indicate a bidirectional causality between exports
 and real industrial output in China in the 1987-1996 period. The
 export-led growth hypothesis, defined as a unidirectional causal ordering
 from exports to output, is therefore rejected in the case of China despite
 the positive contribution of exports on China's real output. 
Journal: Applied Economics 
Pages: 1055-1065 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325228 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325228 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1055-1065




Template-Type: ReDIF-Article 1.0
Author-Name: Michael French 
Author-X-Name-First: Michael 
Author-X-Name-Last: French 
Author-Name: Laura Dunlap 
Author-X-Name-First: Laura 
Author-X-Name-Last: Dunlap 
Title: Compensating wage differentials for job stress 
Abstract:
  Recent medical studies have demonstrated a strong relationship between
 mental stress and cardiac events such as myocardial infarction and stroke.
 In the workplace, stress once accounted for less than 5% of all
 occupational disease claims, but it now accounts for over 15%. Although
 research on the effects of mental stress is increasing, few studies offer
 an economic perspective. In this paper, we examine the effects of job
 stress on weekly wages and explore the possibility that stress commands a
 compensating wage differential. Our findings suggest that, ceteris
 paribus, a wage differential does exist between workers experiencing
 mental stress and their 'non-stressed' cohorts. After controlling for
 other demographic and occupational factors, we found a statistically
 significant wage premium ranging from 3 to 10% attributable to mental
 stress. In addition, the magnitude of the differential varies by gender. 
Journal: Applied Economics 
Pages: 1067-1075 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325237 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325237 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1067-1075




Template-Type: ReDIF-Article 1.0
Author-Name: Akbar Marvasti 
Author-X-Name-First: Akbar 
Author-X-Name-Last: Marvasti 
Author-Name: David Smyth 
Author-X-Name-First: David 
Author-X-Name-Last: Smyth 
Title: Barter in the US economy:a macroeconomic analysis 
Abstract:
  In this paper, a statistical model is developed to examine the
 determinants of the growing level of barter transactions in the US.
 Although a barter system is believed to be Pareto inferior to a money
 system, recent statistics of the estimated level of barter transactions in
 the US show a rapidly growing interest by large corporations as well as
 individuals in this type of trade. The primary obstacle in empirical
 research in this area is the difficulty of measuring the size of barter
 transactions. Here, data from barter exchange organizations are used to
 test the significance of several variables. The Ordinary Least Squares,
 and Cointegration and Error Correction Models are employed as two
 alternative empirical techniques to analyse the data. The results support
 the counter-cyclical arguments as well as the inflation factor. However,
 the notion of tax evasion as a motive in organized barter receives only a
 partial support. 
Journal: Applied Economics 
Pages: 1077-1088 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325246 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325246 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1077-1088




Template-Type: ReDIF-Article 1.0
Author-Name: Lee Rivers Mobley 
Author-X-Name-First: Lee Rivers 
Author-X-Name-Last: Mobley 
Author-Name: Jon Magnussen 
Author-X-Name-First: Jon 
Author-X-Name-Last: Magnussen 
Title: An international comparison of hospital efficiency: does institutional environment matter? 
Abstract:
  The consensus among many health economists is that no meaningful
 performance differences exist among for-profit and non-profit hospitals in
 the US, but this topic has continued to be a matter of academic, judicial,
 and public policy interest. A similar debate has ensued internationally,
 regarding the potential efficiency gains from privatization of public
 enterprises. In this paper, we examine empirical evidence from the public,
 highly regulated Norwegian hospital sector and the private, highly
 competitive and unregulated California hospital sector to ascertain
 whether institutional environment and level of market competition
 significantly affect the degree of productive efficiency in hospitals. We
 compare and discuss the productive efficiency of four similar sets of
 hospitals operating in different institutional and competitive
 environments. The four samples are carefully matched in the dimensions of
 sample size, hospital size, and average lengths of stay. Heterogeneity in
 output definition is used to control for other dimensions (casemix, age
 distribution of patients). We use Data Envelopment Analysis (DEA) to
 estimate and compare average long-run as well as short-run efficiency
 measures across groups. We find that scale and scope regulation of
 Norwegian hospitals improves long-run efficiency, primarily due to better
 utilization of capital. 
Journal: Applied Economics 
Pages: 1089-1100 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325255 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325255 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1089-1100




Template-Type: ReDIF-Article 1.0
Author-Name: Rina Bhattacharya 
Author-X-Name-First: Rina 
Author-X-Name-Last: Bhattacharya 
Author-Name: Jane Binner 
Author-X-Name-First: Jane 
Author-X-Name-Last: Binner 
Title: The shocking nature of output fluctuations in some EU countries 
Abstract:
  Recent literature on optimum currency areas has emphasized the importance
 of analysing the nature of the shocks facing the economy when deciding
 among alternative exchange rate regimes. In this paper we use a structural
 VAR to model the joint behaviour of real output, nominal interest rates,
 real interest rates and real money balances in response to four exogenous
 disturbances. Identifying restrictions are used so that these disturbances
 can be interpreted as supply, money supply, IS and money demand shocks.
 The analysis is performed on five major European countries. The principal
 objective is to investigate both the relative importance of these shocks
 in explaining the variance of output at different time horizons, and the
 dynamic response of these economies to each type of shock. Evidence
 presented in this paper indicates that the five economies under study have
 faced very different types of economic shocks over the recent past. The
 implication is that these countries are unlikely to meet the criteria for
 an optimum currency area. Unless a convincing case can be made that there
 are likely to be substantial economic benefits to offset this loss of a
 policy tool, there is a strong economic case for proceeding with monetary
 union with extreme caution. 
Journal: Applied Economics 
Pages: 1101-1125 
Issue: 8 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325264 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325264 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1101-1125




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Hine 
Author-X-Name-First: Steven 
Author-X-Name-Last: Hine 
Author-Name: Charles. Bischoff 
Author-X-Name-First: Charles. 
Author-X-Name-Last: Bischoff 
Title: The relevance of unanticipated money growth in explaining output variation 
Abstract:
  This paper tests a reduced form equation in which real GNP for the United
 States is explained by deviations of multi-period M1 growth rates from ex
 ante expectations of those rates formed from one to eight quarters
 earlier. The theoretical model is suggested by Stanley Fischer's 1977
 article, and may be thought of as a 'New Keynesian' model. The equations
 are tested in both level and first difference specifications, to allow for
 possible unit roots. Empirical results strongly support this model in
 preference to 'New Classical' and 'Keynesian' alternatives. Ex ante
 expectations or M1 growth are formed from multi-period forecasts made by
 Chase Econometrics, Inc., between 1970 and 1979. 
Journal: Applied Economics 
Pages: 1127-1136 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1127-1136




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Kadri 
Author-X-Name-First: Ali 
Author-X-Name-Last: Kadri 
Title: Oscillating labour from the West Bank 
Abstract:
  A three-sector model representative of conditions in the West Bank is
 tested using pooled sectoral data. The period of study is chosen to be
 relatively stable and it ranges from 1974 to 1988 (post war and beginning
 of Intifada). The testing of the labour supply function results in agents
 preferring to work in the home economy rather than migrate. The sources of
 growth in migrants were detected in a pool of indigent labour for whom the
 possibility of employment at home was poor and as such migration became
 the alternative by necessity. 
Journal: Applied Economics 
Pages: 1137-1146 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1137-1146




Template-Type: ReDIF-Article 1.0
Author-Name: Geoff Kenny 
Author-X-Name-First: Geoff 
Author-X-Name-Last: Kenny 
Author-Name: Donal Mcgettigan 
Author-X-Name-First: Donal 
Author-X-Name-Last: Mcgettigan 
Title: Exchange rates and import prices for a small open economy: the case of Ireland 
Abstract:
  As a further contribution to the growing international literature on
 exchange rate pass-through (PT), this study assesses the extent of PT for
 Irish import prices over the period 1963 to 1995. It fills two important
 gaps in the literature, by making due allowance for the time series
 properties of the data and by concentrating on the case of a small open
 economy. In order to assess the extent of PT a mark-up model for aggregate
 import unit values is employed. It is argued that the usual single
 equation mark-up estimation technique leads to seriously biased and
 inefficient estimates of the degree of PT, as it ignores the strong
 simultaneity of import prices and domestic competing prices. This study
 makes use of the Johansen technique to allow for such simultaneity and
 uncovers two long-run equilibrium relationships among the data, for import
 unit values and domestic competing prices, and confirms the existence of
 very close to full PT for both. Previous results in the literature
 demonstrating substantially less than full PT may be due to the failure to
 make proper allowance for the time series properties of the data or for
 the strong simultaneity which exists between import and domestic competing
 prices. 
Journal: Applied Economics 
Pages: 1147-1155 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1147-1155




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Shields 
Author-X-Name-First: Michael 
Author-X-Name-Last: Shields 
Author-Name: Stephen Wheatley Price 
Author-X-Name-First: Stephen Wheatley 
Author-X-Name-Last: Price 
Title: The earnings of male immigrants in England: evidence from the quarterly LFS 
Abstract:
  In this paper we estimate earnings functions for native born and foreign
 born white and non-white males in the English labour market, using data
 from the Quarterly Labour Force Survey. We correct for selectivity bias in
 the employment decision and control for the nonreporting of wage
 information. Importantly, we separate the returns to schooling and to
 potential experience received in the country of origin from those obtained
 after immigration. Our results highlight the importance of distinguishing
 between native born and foreign born males when investigating the labour
 market experience of ethnic minorities. Furthermore, the earnings
 performance amongst white immigrants varies considerably. 
Journal: Applied Economics 
Pages: 1157-1168 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325057 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1157-1168




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Hyde 
Author-X-Name-First: Charles 
Author-X-Name-Last: Hyde 
Author-Name: Jeffrey Perloff 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Perloff 
Title: Multimarket market power estimation: the Australian retail meat sector 
Abstract:
  A new technique for estimating market power in several markets
 simultaneously is developed and applied to the Australian retail beef,
 lamb, and pork markets. The hypotheses that market power is zero and that
 market power is the same for each meat cannot be rejected. Nor is there
 evidence that market power increased over the period of analysis. Little
 bias is created by examining markets is isolation, rather than within a
 system, when markets are competitive, but that bias can be large when
 market power exists in some markets in the system. 
Journal: Applied Economics 
Pages: 1169-1176 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325066 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325066 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1169-1176




Template-Type: ReDIF-Article 1.0
Author-Name: Mary Beth Walker 
Author-X-Name-First: Mary Beth 
Author-X-Name-Last: Walker 
Author-Name: Sally Wallace 
Author-X-Name-First: Sally 
Author-X-Name-Last: Wallace 
Title: The implications of current policies on the production of infant health 
Abstract:
  This study examines the possible link between the current trend to reduce
 availability of abortion services and the incidence of low birthweight
 births. Using current data on births and abortions in Atlanta and New York
 City, we update and expand the earlier empirical results of Grossman and
 Joyce (The Journal of Political Economy, 1990, 98 (5), 98-1007). Using
 their latent variable model framework, we find some evidence for the 'cost
 of abortion' model, which assumes that increasing the full costs of
 abortion will be associated with more low birthweight, hence less healthy,
 infants. These results indicate that current trends towards the reduction
 of funding for various social services could exacerbate the problem of low
 birthweight. 
Journal: Applied Economics 
Pages: 1177-1186 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325075 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1177-1186




Template-Type: ReDIF-Article 1.0
Author-Name: Abul Shamsuddin 
Author-X-Name-First: Abul 
Author-X-Name-Last: Shamsuddin 
Title: Thedouble-negativeeffect onthe earnings of foreign-born females in Canada 
Abstract:
  This paper contributes to the debate over immigrant 'quality' by
 examining whether or not a double-negative effect on the earnings of
 female immigrants exists in Canada. Contrary to popular belief, this study
 observes that labour market adjustments occur at a faster rate for female
 immigrants than for male immigrants. The results indicate that immigrant
 women in Canada suffer from a double-negative effect mainly because of
 gender earnings discrimination rather than birthplace discrimination.
 Earnings discrimination by birthplace is more pronounced among males than
 females. The findings suggest that in evaluating immigrant quality,
 researchers should take into account the potential role of labour market
 discrimination. 
Journal: Applied Economics 
Pages: 1187-1201 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325084 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325084 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1187-1201




Template-Type: ReDIF-Article 1.0
Author-Name: David Armstrong 
Author-X-Name-First: David 
Author-X-Name-Last: Armstrong 
Title: Careers guidance, psychometric testing and unemployment amongst young people: an empirical analysis for Northern Ireland 
Abstract:
  Psychometric tests continue to form an important part of careers guidance
 for young people of school leaving age throughout the UK. In the existing
 literature, there is little evidence about the impact of testing on
 subsequent labour market success. This paper presents a quantitative
 analysis of the effect of testing in Northern Ireland on young people's
 subsequent experiences of unemployment and long-term unemployment between
 the ages of 16 and 18. On account of the sample selection problem,
 standard single equation estimates of the effects of testing are likely to
 give biased results, and so the bivariate probit model is used in the
 estimation. The results suggest that although testing is not having an
 adverse impact, it is not having a statistically significant positive
 effect. This may be attributable to some aspects of test administration in
 Northern Ireland which, in many cases, seems to fall short of recommended
 guidelines. 
Journal: Applied Economics 
Pages: 1203-1217 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325093 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1203-1217




Template-Type: ReDIF-Article 1.0
Author-Name: Ananda Weliwita 
Author-X-Name-First: Ananda 
Author-X-Name-Last: Weliwita 
Author-Name: E. M. Ekanayake 
Author-X-Name-First: E. M. 
Author-X-Name-Last: Ekanayake 
Title: Demand for money in Sri Lanka during the post-1977 period: a cointegration and error correction analysis 
Abstract:
  This paper investigates the long-run demand for money and short-run
 dynamics of the long-run money demand function for Sri Lanka during the
 post-1977 period. While M1 is cointegrated with real income, nominal
 interest rate, short-term foreign interest rate, and real effective
 exchange rate, M2 is not. This suggests that monetary authorities should
 emphasize the narrow definition of money for monetary control. The one
 year fixed deposits rate is cointegrated with M1, indicating the
 opportunity cost of holding money. Although the inflation rate is not
 cointegrated with M1, it seems to be an important determinant of the
 demand for M1 in the short-run. Results also suggest that the short-term
 foreign interest rate and the exchange rate can have important
 implications for the effectiveness of monetary policy. Monetary
 authorities must consider the response of domestic money demand to these
 external factors when formulating future monetary policies. 
Journal: Applied Economics 
Pages: 1219-1229 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325101 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325101 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1219-1229




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Gonzalo 
Author-X-Name-First: Maria Teresa 
Author-X-Name-Last: Gonzalo 
Title: Job exit of men: new job destination versus unemployment destination 
Abstract:
  Job exit of men over the age of forty is described and analysed using
 monthly observations derived from the 1988-89 UK Retirement Survey. A
 competing risks model is described and estimated. The results show that
 tenure and age determine transitions from a job to a new one, whereas
 those transitions from a job to unemployment are also determined by
 business cycle variables. 
Journal: Applied Economics 
Pages: 1231-1238 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325110 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325110 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1231-1238




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Chiarini 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Chiarini 
Title: Cyclicality of real wages and adjustment costs 
Abstract:
  This paper tackles the issue of the procyclicality of the real wage. We
 present a dynamic relationship between real wages and employment
 consistent with the long-run stationary equilibrium using a cointegrated
 VAR model. We find that wages are anticyclical and that a negative
 relationship between real wages and employment is necessary to achieve an
 economically identifiable stationary long run solution. The
 contentiousness of the topic does not appear so important once we recall
 some measurement issues and economic features of the Italian labour
 market. 
Journal: Applied Economics 
Pages: 1239-1250 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325129 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325129 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1239-1250




Template-Type: ReDIF-Article 1.0
Author-Name: Mike Smet 
Author-X-Name-First: Mike 
Author-X-Name-Last: Smet 
Author-Name: Walter Nonneman 
Author-X-Name-First: Walter 
Author-X-Name-Last: Nonneman 
Title: Economies of scale and scope in Flemish secondary schools 
Abstract:
  This study estimates a multiproduct translog cost function for the entire
 population of 1011 Flemish secondary schools in order to determine the
 degree of ray and product specific (dis)economies of scale as well as the
 degree of (dis)economies of scope. Three types of schools and seven major
 study fields can be distinguished. Student loads in these study fields are
 used as outputs produced by the schools. Evidence is found for ray
 economies of scale for the three types of schools, even at output levels
 of 300% of the actual means. Although the cost elasticities of six out of
 seven outputs are close to zero, most of the values indicating the degree
 of product specific economies of scale are negative (suggesting
 diseconomies of scale). However, this can be explained by the considerable
 scope effects which are incorporated in the definition of the product
 specific economies of scale. 
Journal: Applied Economics 
Pages: 1251-1258 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1251-1258




Template-Type: ReDIF-Article 1.0
Author-Name: Cynthia Dudzinski 
Author-X-Name-First: Cynthia 
Author-X-Name-Last: Dudzinski 
Author-Name: O. Homer Erekson 
Author-X-Name-First: O. Homer 
Author-X-Name-Last: Erekson 
Author-Name: Andrea Ziegert 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Ziegert 
Title: Estimating an hedonic translog cost function for the home health care industry 
Abstract:
  Medicare home health care plays an important role in providing cost
 effective care for the chronically ill and elderly. Long seen as a cost
 effective substitute for nursing home care, home care has become even more
 important with expenditures increasing by 31.4% from 1990 to 1996. The
 purpose of this paper is to provide a short run cost analysis of a sample
 of home health care providers to gain insight into the efficient provision
 of home health care services. This paper is a significant improvement over
 previous studies in that it uses a nationwide database to more accurately
 represent the multiproduct nature of the industry and uses an hedonic
 translog cost estimation with desirable economic properties. 
Journal: Applied Economics 
Pages: 1259-1267 
Issue: 9 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325147 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325147 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1259-1267




Template-Type: ReDIF-Article 1.0
Author-Name: A. C. Arize 
Author-X-Name-First: A. C. 
Author-X-Name-Last: Arize 
Author-Name: S. S. Shwiff 
Author-X-Name-First: S. S. 
Author-X-Name-Last: Shwiff 
Title: Does exchange-rate volatility affect import flows in G-7 Countries? Evidence from cointegration models 
Abstract:
  This paper provides new evidence on the long-run relationship between
 imports and exchange-rate volatility in G-7 countries. The period examined
 is 1973:2 through 1995:1. Cointegration analyses are based on Johansen's
 (1991, 1994) approach and robust single-equation methods of Stock and
 Watson (1993) and Phillips and Loretan (1991). In conformity with
 theoretical considerations, the results indicate that exchange-rate
 volatility has a significant negative effect on the volume of imports of
 most G-7 countries whereas for Canada, it is positive and significant.
 These findings are reasonably robust in terms of measures of exchange-rate
 volatility and different estimation methods. 
Journal: Applied Economics 
Pages: 1269-1276 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324887 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324887 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1269-1276




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Butler-Smith 
Author-X-Name-First: Paul 
Author-X-Name-Last: Butler-Smith 
Author-Name: Samuel Cameron 
Author-X-Name-First: Samuel 
Author-X-Name-Last: Cameron 
Author-Name: Alan Collins 
Author-X-Name-First: Alan 
Author-X-Name-Last: Collins 
Title: Gender differences in mate search effort: an exploratory economic analysis of personal advertisements 
Abstract:
  As a logical extension to the microeconomic analysis of human
 relationships, this study examines the actual method of mate search, in
 particular the use of personal advertisements. Some empirical support is
 found for Becker's (1973, 1974) explanations of mating strategy, but in
 relation to the level of search effort by gender, the results are not so
 clearly in accordance with his thinking. 
Journal: Applied Economics 
Pages: 1277-1285 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324896 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324896 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1277-1285




Template-Type: ReDIF-Article 1.0
Author-Name: Abul Masih 
Author-X-Name-First: Abul 
Author-X-Name-Last: Masih 
Author-Name: Rumi Masih 
Author-X-Name-First: Rumi 
Author-X-Name-Last: Masih 
Title: A multivariate cointegrated modelling approach in testing temporal causality between energy consumption, real income and prices with an application to two Asian LDCs 
Abstract:
  Unlike previous studies on the casual relationship between energy
 consumption and economic growth, this paper illustrates how the finding of
 cointegration(i.e. long-term equilibrium relationship) between these
 variables, may be used in testing Granger causality. Based on the most
 recent Johansen's multiple cointegration tests preceded by various unit
 root or nonstationarity tests, we test for cointegration between total
 energy consumption, real income and price level of two Asian LDCs:
 Thailand and Sri Lanka. Nonrejection of cointegration between variables
 rules out Granger noncausality and implies at least one way of
 Granger-causality either unidirectional or bidirectional. Secondly, by
 using a dynamic vector error-correction model, we then analyse the
 direction of Granger-causation and hence the within-sample
 Grangerexogeneity or endogeneity of each of the variables. Thirdly, the
 relative strength of the causality is gauged (through the dynamic variance
 decomposition technique) by decomposing the total impact of an
 unanticipated shock to each of the variables beyond the sample period,
 into proportions attributable to shocks in the other variables including
 its own, in the multivariate system. Finally, these response paths of
 shocks to the system are traced out using impulse response graphs. Results
 based on these four tools of methodology, broadly indicate that all three
 variables are cointegrated and exhibit two common trends within each
 system. Energy consumption seems to be relatively exogenous as neither
 income nor prices seems to Granger cause this variable via any of the
 channels where potential casuality may occur. Though, energy consumption
 itself plays an important role in influencing income and prices by varying
 degrees of significance for each country. Overall, shocks to the system
 seemed to have had a more sustained if not pronounced effect in Thailand
 than in Sri Lanka. 
Journal: Applied Economics 
Pages: 1287-1298 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324904 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324904 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1287-1298




Template-Type: ReDIF-Article 1.0
Author-Name: Athanasios Noulas 
Author-X-Name-First: Athanasios 
Author-X-Name-Last: Noulas 
Author-Name: Kusum Ketkar 
Author-X-Name-First: Kusum 
Author-X-Name-Last: Ketkar 
Title: Efficient utilization of resources in public schools: a case study of New Jersey 
Abstract:
  The academic performance of public schools in the United States has been
 declining for more than two decades now, and this is a hotly debated topic
 since this deterioration in performance has important implications on the
 quality of labour and on the productivity growth of the nation (Bishop,
 1989). Moreover, the performance among school districts in states varies
 significantly, raising questions about the factors contributing to the
 large variability in performance. One area where the current debate has
 been focused is the ability and quality of the school management to use
 the available resources efficiently, giving rise to the issues of a
 voucher system and the private management of the public schools. This
 study measures the efficiency of public schools for the state of New
 Jersey using the data envelopment analysis (DEA) method; it also examines
 the effect of certain socio-economic factors on efficiency. We find that
 the average efficiency for all schools is 81%. The wealthiest districts
 have an efficiency score of 88% while for the neediest districts the
 efficiency is 63%. However, when we adjust for socio-economic factors the
 difference between the two groups becomes smaller. 
Journal: Applied Economics 
Pages: 1299-1306 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324913 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324913 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1299-1306




Template-Type: ReDIF-Article 1.0
Author-Name: Sohrab Abizadeh 
Author-X-Name-First: Sohrab 
Author-X-Name-Last: Abizadeh 
Author-Name: Mahmood Yousefi 
Author-X-Name-First: Mahmood 
Author-X-Name-Last: Yousefi 
Title: Deficits and inflation: an open economy model of the United States 
Abstract:
  The deficit debate is a recurring theme in academic and political
 circles. The controversy is over the effect of deficits on inflation and
 interest rates. The existing body of empirical evidence does not resolve
 the controversy. This paper focuses on the inflationary impact of
 deficits. The model used is derived from a comprehensive IS-LM analysis
 which incorporates a foreign trade sector and a general price (adoptive
 expectation) adjustment mechanism. We test the model using time series
 data for the United states. From our results we conclude that NIA deficits
 have no significant bearing on the rate of inflation. 
Journal: Applied Economics 
Pages: 1307-1316 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324922 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324922 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1307-1316




Template-Type: ReDIF-Article 1.0
Author-Name: Fahim Al-Marhubi 
Author-X-Name-First: Fahim 
Author-X-Name-Last: Al-Marhubi 
Title: Cross-country evidence on the link between inflation volatility and growth 
Abstract:
  It is generally accepted that short-run monetary (mis)management, as
 reflected in inflation volatility, affects the long-run growth rate of the
 economy. This proposition is tested for a cross-section sample of 78
 countries over the period 1965-85. The evidence suggests that, after
 controlling for other country-specific growth correlates, high inflation
 volatility is associated with lower mean growth. Inflation volatility was
 also found to have a negative effect on the productivity of investment,
 but does not appear to affect the share of investment of GDP. These
 results are also robust to an alternative data set that extends the sample
 period to 1994. 
Journal: Applied Economics 
Pages: 1317-1326 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324931 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324931 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1317-1326




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Peraita 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Peraita 
Author-Name: Manuel Sanchez 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Sanchez 
Title: The effect of family background on children's level of schooling attainment in Spain 
Abstract:
  This paper provides microeconomic estimates of the role played by family
 background in determining children's level of schooling attainment in
 Spain. We use an ordered logit model to explore the effects of family
 background and other supply factors on the probability of various
 educational outcomes. Our estimates are based on household data obtained
 from the ECVT, Living and Working Conditions Survey (Ministerio de
 Economia y Hacienda, 1985), a Spanish nation-wide household survey
 conducted at the end of 1985. In general, and given the Spanish capital
 constraints, parental income, social class, and family size, explain
 children's level of schooling. These results are consistent with those of
 the literature that focuses on the role of family background in
 determining schooling attainment. 
Journal: Applied Economics 
Pages: 1327-1334 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324940 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1327-1334




Template-Type: ReDIF-Article 1.0
Author-Name: Katharine Wakelin 
Author-X-Name-First: Katharine 
Author-X-Name-Last: Wakelin 
Title: The role of innovation in bilateral OECD trade performance 
Abstract:
  This paper tests an empirical model of the determinants of bilateral OECD
 trade, with particular emphasis on the role of innovation. Variation in
 the relationship across countries and sectors is analysed; two innovation
 proxies and actual data on innovations are used. A positive relationship
 is found between relative innovation and bilateral trade performance at an
 aggregate level, and for a number of manufacturing sectors. Sectors are
 also categorized as either net users or producers of innovations;
 differences in innovation appear to have more of an impact on trade
 performance for the net producers of innovations than the net users of
 innovations. 
Journal: Applied Economics 
Pages: 1335-1346 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324959 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324959 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1335-1346




Template-Type: ReDIF-Article 1.0
Author-Name: Sarmistha Pal 
Author-X-Name-First: Sarmistha 
Author-X-Name-Last: Pal 
Title: A limited-dependent analysis of the choice of regular labour contract in seasonal agriculture 
Abstract:
  The paper examines both theoretically and empirically the factors
 determining the demand for regular labour in seasonal agriculture. In an
 implicit contract framework it is argued that there are 'hoarding costs'
 of regular labour in the slack period when there is not much work to be
 done. Consequently, the number of regular labour employed is constrained
 by the hoarding cost where larger employment-intensive farms tend to hire
 more regular labour. Evidence from the ICRISAT villages in India, too,
 show that though the marginal costs of regular labour are zero, there are
 significant hoarding costs of regular labour among small farms so that
 larger farmers are the major demanders of regular labour. Estimates of the
 double-hurdle model jointly determining the probability of hiring regular
 labour and demand for regular labour-hours (if a regular labour is hired)
 are shown to be an improvement over univariate tobit estimates of the
 demand for regular labour-hours only. 
Journal: Applied Economics 
Pages: 1347-1359 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324968 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324968 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1347-1359




Template-Type: ReDIF-Article 1.0
Author-Name: James Fain 
Author-X-Name-First: James 
Author-X-Name-Last: Fain 
Title: The causes and consequences of occupational segregation: a simultaneous equations approach 
Abstract:
  Lewis and Shorten (Applied Economics, 1991, 23, 167-77) have proposed
 that male and female earnings, male and female labour force participation
 rates and occupational segregation are simultaneously determined in the
 labour market. They estimate their model for Australia using 1981 Census
 data and find substantial evidence to support their hypothesis. However,
 there have been no subsequent studies to empirically test their hypothesis
 for other countries. In this paper their model for the United States using
 1990 Census data is replicated. All but one of the coefficients on the
 endogenous variables have the same signs as those reported by Lewis and
 Shorten, which tends to support their model. The specification of Lewis
 and Shorten's model is tested and it is inappropriate for the US data. The
 model is then reformulated and re-estimated. The reformulated model also
 shows substantial evidence of simultaneity between occupational
 segregation and other labour market outcomes. 
Journal: Applied Economics 
Pages: 1361-1367 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324977 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324977 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1361-1367




Template-Type: ReDIF-Article 1.0
Author-Name: Madhu Mohanty 
Author-X-Name-First: Madhu 
Author-X-Name-Last: Mohanty 
Title: The role of the desire for union status in the decision to enter local government job queues: the US evidence 
Abstract:
  Following a two-stage bivariate probit approach, this study estimates
 local government and union job queues in a simultaneous equations
 framework. By relaxing the restrictive assumption of independence between
 the worker's queuing and the employer's hiring decisions, it overcomes a
 major limitation of most of the earlier job queue estimates. The results
 indicate that the worker's queuing decision for local government jobs in
 the United States is determined partly by the desire for unionized
 employment. The converse, however, is not true. Seniority with the current
 employer emerges as a significant determinant of both workers'queuing and
 employers' hiring decisions. Furthermore, local governments act as 'model
 employers' by being more likely to hire minorities and females from the
 pool of job applicants. 
Journal: Applied Economics 
Pages: 1369-1378 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324986 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324986 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1369-1378




Template-Type: ReDIF-Article 1.0
Author-Name: Matz Dahlberg 
Author-X-Name-First: Matz 
Author-X-Name-Last: Dahlberg 
Author-Name: Eva Johansson 
Author-X-Name-First: Eva 
Author-X-Name-Last: Johansson 
Title: The revenues-expenditures nexus: panel data evidence from Swedish municipalities 
Abstract:
  This paper examines the dynamic relationship between local government
 revenues and expenditures in Sweden. Results from a panel of 265
 municipalities covered over the time period 1974-87 show that (i)
 expenditures cause revenues, while revenues do not cause expenditures,
 (ii) intergovernmental grants both cause and are caused by expenditures
 and revenues, (iii) lags of four years are needed to describe the dynamics
 among the fiscal variables and (iv) the parameters of the expenditures
 equation are time varying. These results cast doubt on static modeling of
 local government activities and on models imposing time invariant
 parameters without ever testing for it. 
Journal: Applied Economics 
Pages: 1379-1386 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324995 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324995 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1379-1386




Template-Type: ReDIF-Article 1.0
Author-Name: Les Oxley 
Author-X-Name-First: Les 
Author-X-Name-Last: Oxley 
Author-Name: David Greasley 
Author-X-Name-First: David 
Author-X-Name-Last: Greasley 
Title: Vector autoregression, cointegration and causality: testing for causes of the British industrial revolution 
Abstract:
  The existence, timing, and possible causes of the British industrial
 revolution are considered by investigating the time series properties of
 industrial production and various explanatory variables. Utilising two
 types of robust cointegration-based causality tests we argue that domestic
 forces, notably technological progress, shaped the industrial revolution,
 whereas overseas trade expansion was mainly a consequence of industrial
 growth. Results from Granger-type VAR tests are contrasted with those of
 Toda and Phillips (Working paper 91-07, University of Western Australia,
 1991b), where the latter manifest some of the potential problems raised by
 the authors when applied to a data set of this type. An understanding of
 the possible causes of the first industrial revolution may shed more
 general light on the forces promoting industrialization and growth. To the
 extent that the first industrial revolution offers a template, exports
 appear not to provide a simple pathway to industrialization. 
Journal: Applied Economics 
Pages: 1387-1397 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325002 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1387-1397




Template-Type: ReDIF-Article 1.0
Author-Name: A. Gracia 
Author-X-Name-First: A. 
Author-X-Name-Last: Gracia 
Author-Name: J. M. Gil 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Gil 
Author-Name: A. M. Angulo 
Author-X-Name-First: A. M. 
Author-X-Name-Last: Angulo 
Title: Spanish food demand: a dynamic approach 
Abstract:
  Other empirical works have demonstrated that Spanish food demand seems to
 have a dynamic structure. However, the commonly used dynamization
 processes are too restrictive to explain the dynamic food consumers'
 behaviour. A more general model that is able to incorporate different
 dynamic structures (partial adjustment, first autoregressive, and static)
 and allows for direct estimation of long-run coefficients has been used.
 This general framework is applied to the Generalized Addilog Demand System
 (GADS) for annual Spanish data covering 1964 to 1991. Results indicate
 that an autoregressive GADS fits well the data, satisfying the theoretic
 restrictions. Finally, the expenditure and price elasticities are
 calculated. 
Journal: Applied Economics 
Pages: 1399-1405 
Issue: 10 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498325011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325011 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1399-1405




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Witt 
Author-X-Name-First: Robert 
Author-X-Name-Last: Witt 
Author-Name: Alan Clarke 
Author-X-Name-First: Alan 
Author-X-Name-Last: Clarke 
Author-Name: Nigel Fielding 
Author-X-Name-First: Nigel 
Author-X-Name-Last: Fielding 
Title: Common trends and common cycles in regional crime 
Abstract:
  This paper uses the Vahid and Engle (Journal of Applied Econometrics, 8,
 341-360, 1993) common trend - common cycle approach to model the dynamics
 of regional crime rates in England over the period 1975-1996. The evidence
 indicates the existence of common trends and common cycles in regional
 crime rates. This result is exploited to examine the system-wide effects
 of shocks emanating in a particular region. 
Journal: Applied Economics 
Pages: 1407-1412 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324751 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324751 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1407-1412




Template-Type: ReDIF-Article 1.0
Author-Name: Rainer Winkelmann 
Author-X-Name-First: Rainer 
Author-X-Name-Last: Winkelmann 
Author-Name: Klaus Zimmermann 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Zimmermann 
Title: Is job stability declining in Germany? Evidence from count data models 
Abstract:
  The macro evidence of increased adjustment pressure since the early 1970s
 suggests that job mobility should have increased. Hence, retrospective and
 spell data from the German Socio-Economic Panel are combined in order to
 test the hypothesis that job stability for German workers declined between
 1974 and 1994. Using count data regression models in which we control for
 labour market experience, various demographic factors, and occupation, we
 find that job stability did not decrease, but if anything increased,
 between 1974 and 1994. Our finding suggests that labour market
 inflexibility is an important factor in explaining the European
 unemployment problem. 
Journal: Applied Economics 
Pages: 1413-1420 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324760 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324760 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1413-1420




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Howells 
Author-X-Name-First: Peter 
Author-X-Name-Last: Howells 
Author-Name: Khaled Hussein 
Author-X-Name-First: Khaled 
Author-X-Name-Last: Hussein 
Title: The demand for broad money in the UK: does credit matter? 
Abstract:
  Empirical work based on portfolio theories of the demand for money
 traditionally treat the quantity of money demanded as the outcome of a
 decision to allocate a fixed amount of wealth. By contrast, this paper
 argues that people commonly hold money at the same time that they borrow.
 Thus changes in gross wealth will cause changes in the quantity of money
 people wish to hold. This suggests that empirical work in the demand for
 broad money should pay attention to the cost of credit. We estimate the
 demand for broad money in the UK (1969Q1-1994Q4) using the recently
 developed time-series techniques of DOLS and FPLS. Our findings show that
 the cost of credit variables are important determinants of the demand for
 real M4 in the UK. In contrast to the recent empirical literature, our
 results provide strong evidence for the hypothesis that interest rates
 have a short and long term causal impact on real money demand in the UK. 
Journal: Applied Economics 
Pages: 1421-1429 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324779 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324779 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1421-1429




Template-Type: ReDIF-Article 1.0
Author-Name: I. Luski 
Author-X-Name-First: I. 
Author-X-Name-Last: Luski 
Author-Name: J. Weinblatt 
Author-X-Name-First: J. 
Author-X-Name-Last: Weinblatt 
Title: A dynamic analysis of fiscal pressure and demographic transition 
Abstract:
  In this paper, the effects of demographic changes, particularly in the
 age structure of population, on government social expenditure is
 estimated. The results indicate that income elasticity of government
 social services is unitary in high income countries and above that level
 in low income countries, especially in education and welfare. The paper
 attempts also to forecast the pressure of these government outlays in four
 distinct countries characterized by different demographic parameters. 
Journal: Applied Economics 
Pages: 1431-1442 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324788 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1431-1442




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Maeso-Fernandez 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Maeso-Fernandez 
Title: Econometric methods and purchasing power parity: short- and long-run PPP 
Abstract:
  This paper defines the different versions of the purchasing power parity
 and establishes the existing relationships between them in the light of
 econometric techniques. Monthly and annual data for real exchange rates
 are studied through a variance ratio test. Unlike other authors, it is
 found that there is not explosive behaviour in the real exchange rate when
 monthly data are used. Besides, stationarity is easily accepted using
 annual data. These results allow to reconcile the two main versions of the
 purchasing power parity and also explain why trade imbalances are
 persistent but not permanent. 
Journal: Applied Economics 
Pages: 1443-1457 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1443-1457




Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Frantzen 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Frantzen 
Title: R&D efforts, international technology spillovers and the evolution of productivity in industrial countries 
Abstract:
  Equations are presented that relate countries' total factor productivity
 to own and to foreign R&D efforts. They are estimated on a panel of annual
 time series concerning a set of industrial countries over a period from
 the mid-1960s to the early 1990s. Use is made of alternative cointegrating
 estimation procedures. The results imply that, whereas domestic R&D
 efforts exercise a significant influence on total factor productivity, the
 influence of international technology spillovers is, on average, even more
 important. A causality analysis confirms that the causation runs in
 essence from R&D to productivity rather than the other way around. 
Journal: Applied Economics 
Pages: 1459-1469 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324805 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1459-1469




Template-Type: ReDIF-Article 1.0
Author-Name: Madhu Mohanty 
Author-X-Name-First: Madhu 
Author-X-Name-Last: Mohanty 
Title: Do US employers discriminate against females when hiring their employees? 
Abstract:
  Using Johnson's decomposition technique, this paper demonstrates that the
 disappearance of the gap between female and male unemployment rates in the
 United States during the last decade results partly from a general hiring
 policy that is favourable to women workers. This conclusion holds for
 workers in five out of eight occupational subsamples considered. The sign
 and size of unexplained female - male unemployment rate differential
 estimated from 1969, 1977 and 1987 CPS data suggest that hiring
 discrimination against females in the US labour market has declined
 considerably during the last two decades. The study also supports the
 earlier finding that the growth of employment in government and in the
 female dominated service sector, and migration of workers from the South
 to other regions contribute significantly to the convergence of male and
 female unemployment rates in the 1980s. 
Journal: Applied Economics 
Pages: 1471-1482 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324814 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324814 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1471-1482




Template-Type: ReDIF-Article 1.0
Author-Name: Costas Milas 
Author-X-Name-First: Costas 
Author-X-Name-Last: Milas 
Title: Demand for Greek imports using multivariate cointegration techniques 
Abstract:
  Starting from a theoretical model with importable, traded and nontraded
 goods, we identify a long run relationship among Greek imports, domestic
 activity and relative prices. The model supports weak exogeneity of
 relative prices which means that Greek importers take the price of imports
 as given. The greater than one income elasticity, which persists even when
 cyclical demand effects are netted out, means that Greece faces an
 external constraint on growth as verified by the negative effect of the
 disequilibrium error in the short run output equation. The findings of
 this paper suggest that the price of domestic tradeables and nontradeables
 are significant determinants of the long run and short run import demand,
 while instability in domestic inflation is found to have a strong short
 run depressing effect on domestic activity. 
Journal: Applied Economics 
Pages: 1483-1492 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324823 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324823 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1483-1492




Template-Type: ReDIF-Article 1.0
Author-Name: Per Johansson 
Author-X-Name-First: Per 
Author-X-Name-Last: Johansson 
Author-Name: Kurt Brafinnafis 
Author-X-Name-First: Kurt 
Author-X-Name-Last: Brafinnafis 
Title: A household model for work absence 
Abstract:
  The economic incentives of work absence are empirically studied using a
 panel of Swedish blue collar workers, both men and women, that either are
 married or living with a spouse as married. A model for the daily absence
 decision is derived from standard economic utility theory. An estimable
 form for the annual number of absence days is obtained by considering the
 data generating process in some detail. The model is estimated, using the
 first two moments, with a generalized method of moment estimator. The
 panel structure of the data is explicitly considered and a positive
 dependence between the number of days absent in the two time periods is
 found for females. A 1% increase in the cost will lead to a decrease in
 the mean number of days absent by 1.8 and 2.7% for females and males,
 respectively. 
Journal: Applied Economics 
Pages: 1493-1503 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324832 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324832 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1493-1503




Template-Type: ReDIF-Article 1.0
Author-Name: Leighton Vaughan Williams 
Author-X-Name-First: Leighton Vaughan 
Author-X-Name-Last: Williams 
Author-Name: David Paton 
Author-X-Name-First: David 
Author-X-Name-Last: Paton 
Title: Why are some favourite-longshot biases positive and others negative? 
Abstract:
  Most studies of both pari-mutuel and fixed-odds betting markets have
 shown a systematic tendency for the expected return to bets at lower odds
 to exceed those at higher odds. Some work, however, has revealed in
 certain markets the absence or even reversal of this bias. We present a
 model which distinguishes two separate types of bettor, and use this to
 demonstrate how transactions costs, the extent of public information, and
 consumption benefits of betting can explain the disparities. Our empirical
 evidence, taken from a fixed-odds market, lends support to our theoretical
 conclusions. 
Journal: Applied Economics 
Pages: 1505-1510 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324841 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324841 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1505-1510




Template-Type: ReDIF-Article 1.0
Author-Name: Ben Bode 
Author-X-Name-First: Ben 
Author-X-Name-Last: Bode 
Author-Name: Johan Koerts 
Author-X-Name-First: Johan 
Author-X-Name-Last: Koerts 
Author-Name: A. Roy Thurik 
Author-X-Name-First: A. Roy 
Author-X-Name-Last: Thurik 
Title: On the use of disequilibrium models in applied microeconomic research and the value of sample separation information 
Abstract:
  The use of disequilibrium models in applied microeconomic research is
 evaluated. A disequilibrium or switching regime model is used to
 explainsales levels of individual retail stores. It is investigated
 whether substantial differences are found if an equilibrium approach is
 followed instead. Disequilibrium models are known to suffer from the fact
 that sample separation is unknown. Usually this information is not
 available. Our sample contains explicit information with respect to the
 regime to which an observation belongs. Therefore, the value of sample
 separation information in estimating the disequilibrium model is
 investigated. Finally, Monte Carlo experiments are conducted to get more
 insight into these matters. 
Journal: Applied Economics 
Pages: 1511-1530 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324850 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324850 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1511-1530




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Hildreth 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Hildreth 
Author-Name: Stephen Millard 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Millard 
Author-Name: Dale Mortensen 
Author-X-Name-First: Dale 
Author-X-Name-Last: Mortensen 
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: Wages, work, and unemployment 
Abstract:
  This paper provides new evidence on unemployment durations for
 individuals in Great Britain using a three state Markov framework in a
 competing risk setting and a nationally representative data set. The
 analysis is based on the premise that an individual's movements between
 labour market states can be represented by a Markov process. The modelling
 procedure combines the dynamic properties of the search approach to
 unemployment while using the labour supply decision at each moment in time
 in response to the expected wage to include participation decisions. Using
 this framework, we are able to determine the effect of individual
 characteristics, including the expected wage, on labour market behaviour.
 The model is estimated separately for men and women, and for young and
 mature workers, to investigate whether labour market behaviour differs for
 these groups. The validity of the Markov assumptions are tested using
 different model specifications, and changes in the model over calendar
 time are also presented. 
Journal: Applied Economics 
Pages: 1531-1547 
Issue: 11 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324869 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324869 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1531-1547




Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Mishra 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Mishra 
Author-Name: Barry Goodwin 
Author-X-Name-First: Barry 
Author-X-Name-Last: Goodwin 
Title: Income risk and allocation of labour time: an empirical investigation 
Abstract:
  This study investigates the behaviour of risk averse farm operators in
 response to farm income and employment variability. Economic theory
 maintains that greater farm income variability should increase off-farm
 labour supply. On the other hand greater off-farm employment variability
 should decrease off-farm labour supply. This effect is confirmed for a
 sample of farm operators in North Carolina and Kansas using fixed and
 random effects models. Off-farm employment of farm operators is also found
 to be significantly influenced by age, efficiency, asset value, and
 off-farm wage rate. 
Journal: Applied Economics 
Pages: 1549-1555 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324634 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324634 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1549-1555




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Garcia 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Garcia 
Author-Name: Jose Alberto Molina 
Author-X-Name-First: Jose Alberto 
Author-X-Name-Last: Molina 
Title: Household labour supply with rationing in Spain 
Abstract:
  This paper provides new empirical evidence on household labour supply
 with rationing. To that end, we use the latest Spanish data in order to
 estimate three flexible functional forms, namely the NLES, the quadratic
 and the Hausman - Ruud forms and calculate the income and wage
 elasticities. We find that the number of dependants has a negative effect
 on the labour supply of the female. Moreover, the North and the East
 Spanish regions have a clearly positive effect on the labour supply of the
 female, whilst the North has the same effect on that of the male. The
 elasticities of three functional forms are very similar. Male labour
 supply is slightly decreasing with the wage, whilst for the female it is
 increasing. Leisure is a normal good for both spouses, as expected, whilst
 the labour hours are net substitutes. 
Journal: Applied Economics 
Pages: 1557-1570 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324643 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1557-1570




Template-Type: ReDIF-Article 1.0
Author-Name: Cynthia Brown 
Author-X-Name-First: Cynthia 
Author-X-Name-Last: Brown 
Author-Name: Jose Pagan 
Author-X-Name-First: Jose 
Author-X-Name-Last: Pagan 
Title: Changes in employment status across demographic groups during the 1990-1991 recession 
Abstract:
  This study analyses the relative impact of the 1990-91 recession on the
 employment status of Mexican-American, other Hispanic, and non-Hispanic
 black and white workers in the US. Recession-induced job losses and
 changes in shares of parttime and fulltime employment significantly varied
 across demographic groups and gender. From 1989 to 1991 males experienced
 a larger decline than females in the relative shares of fulltime
 employment with Mexican-American and other Hispanic females actually
 increasing their shares. Utilizing 1990 and 1992 CPS data, we estimate
 bivariate probit models of employment and fulltime/parttime employment
 status for each group. These employment and work status probabilities are
 then decomposed to analyse the factors that led to the changes. Our study
 suggests that the 1990-91 recession-induced labour market changes had the
 most detrimental impact on black male and non-Hispanic white female
 workers. As such, public policies implemented to mitigate the impact of
 economic downturns should take into account the differential impact of
 economic recessions on demographic groups. 
Journal: Applied Economics 
Pages: 1571-1583 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324652 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324652 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1571-1583




Template-Type: ReDIF-Article 1.0
Author-Name: Julius Horvath 
Author-X-Name-First: Julius 
Author-X-Name-Last: Horvath 
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Author-Name: Subhash Sharma 
Author-X-Name-First: Subhash 
Author-X-Name-Last: Sharma 
Title: On the European monetary system: the spillover effects of German shocks and disinflation 
Abstract:
  We analyse the disinflationary experience between 1979-93 for two
 traditionally inflationary countries of the European Monetary System:
 France and Italy. For each country, a vector autoregressive model is
 estimated. Shocks in the model combine domestic and foreign sources. The
 latter capture the world oil price shocks as well as nominal and real
 shocks originating in Germany. Under investigation is the hypothesis that
 shocks originating in Germany have a spillover disinflationary effect in
 France and Italy. The empirical evidence provides support to the validity
 of this hypothesis. Furthermore, German shocks account for an important
 share of the total price variance in France and Italy. These results
 indicate that the interaction between countries of the European Monetary
 System has contributed to the success of the disinflationary experiences
 of the 1980s. The evidence sheds, therefore, some light on potential
 benefits that may be further realized as countries of the European
 Monetary System move towards their objective of achieving a single
 currency under a united monetary system. 
Journal: Applied Economics 
Pages: 1585-1593 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324661 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324661 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1585-1593




Template-Type: ReDIF-Article 1.0
Author-Name: David Abler 
Author-X-Name-First: David 
Author-X-Name-Last: Abler 
Author-Name: Jayanta Das 
Author-X-Name-First: Jayanta 
Author-X-Name-Last: Das 
Title: The determinants of the speed of convergence: the case of India 
Abstract:
  A large number of studies have tested whether per capita incomes are
 converging, either conditionally or unconditionally, across countries or
 across regions within countries. However, none of them has investigated
 the determinants of the speed of convergence when this speed can vary
 across economies. This study investigates the determinants of the speed of
 convergence across states within India. The results are inconsistent in
 several ways with the predictions of the Solow-Swan model. The
 Ramsey-Cass-Koopmans model fares better, but there are still some
 important inconsistencies. 
Journal: Applied Economics 
Pages: 1595-1602 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324670 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324670 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1595-1602




Template-Type: ReDIF-Article 1.0
Author-Name: Basim Makhoul 
Author-X-Name-First: Basim 
Author-X-Name-Last: Makhoul 
Author-Name: Samuel Otterstrom 
Author-X-Name-First: Samuel 
Author-X-Name-Last: Otterstrom 
Title: Exploring the accuracy of international trade statistics 
Abstract:
  This study provides a comprehensive investigation of statistical
 discrepancies in generally accepted international trade figures published
 by the IMF between 1948 and 1994. We calculated export over- and
 underestimation for each country and all of their bilateral trading
 partners. By keeping totals for over- and underestimation in separate
 categories we avoided the cancellation effect of aggregating positive and
 negative discrepancies among partner countries. In general, the results
 show a significant improvement in the quality of trade data over time.
 However for many countries, relatively large discrepancies still exist
 that defy technical explanations, such as the CIF-FOB margins. Also,
 because export over- and underestimation coexist for most of the countries
 at varying degrees, use of the aggregate sum of the discrepancy might
 disguise the actual magnitude of the problem. A significant difference
 exists in the relative magnitude and dispersion of trade discrepancies
 between OECD countries and non-OECD countries. Trend analysis suggests
 that the accuracy of trade data is improving at a faster rate in the
 non-OECD than in the OECD countries. 
Journal: Applied Economics 
Pages: 1603-1616 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324689 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324689 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1603-1616




Template-Type: ReDIF-Article 1.0
Author-Name: John Ashworth 
Author-X-Name-First: John 
Author-X-Name-Last: Ashworth 
Author-Name: Lynne Evans 
Author-X-Name-First: Lynne 
Author-X-Name-Last: Evans 
Title: Functional form of the demand for real balances in Cagan's hyperinflation model 
Abstract:
  This paper uses recent advances in the development of testable
 implications of the Cagan model of hyperinflation. It extends the range of
 candidate functional forms of the demand for real balances in
 hyperinflations to include nonstandard versions in which the absolute
 inflation elasticity is a decreasing function of inflation. These
 nonstandard functional forms are of interest because they are known to
 have desirable theoretical properties. This paper finds empirical
 justification for a nonstandard form that performs at least as well as the
 traditional semilogarithmic functional form. 
Journal: Applied Economics 
Pages: 1617-1623 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324698 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324698 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1617-1623




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Andrikopoulos 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Andrikopoulos 
Author-Name: John Loizides 
Author-X-Name-First: John 
Author-X-Name-Last: Loizides 
Title: Cost structure and productivity growth in European railway systems 
Abstract:
  The purpose of this paper is threefold: first, to empirically investigate
 the coststructure of the railway systems in ten European Countries
 (Belgium, Denmark, France, Germany, Greece, Italy, Luxembourg, the
 Netherlands, Portugal and the United Kingdom) of the European Union,
 second to provide measures of economies (diseconomies) of scale and fully
 investigate the manner by which economies of scale have affected the cost
 structure of the system and have been affected by the growth in input
 prices and technology, and third, to measure economic efficiency and
 identify its sources. In achieving this purpose, the translog technology
 has been used and the translog model was estimated using time-series data
 covering the period 1969-1993. Zellner's iterative method was used in
 estimating the translog model. 
Journal: Applied Economics 
Pages: 1625-1639 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324706 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324706 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1625-1639




Template-Type: ReDIF-Article 1.0
Author-Name: S. M. Dobson 
Author-X-Name-First: S. M. 
Author-X-Name-Last: Dobson 
Author-Name: J. A. Goddard 
Author-X-Name-First: J. A. 
Author-X-Name-Last: Goddard 
Title: Performance and revenue in professional league football: evidence from Granger causality tests 
Abstract:
  Using a dataset comprising annual performance (measured by final league
 position) and gate revenue for 77 Football League clubs which maintained
 unbroken league membership between 1946 and 1994, the relationship between
 performance and revenue is investigated using cointegration and causality
 tests. A cointegrating relationship between performance and revenue is
 established in only 10 cases out of 77, although it is argued that some
 caution is required in interpreting these results, due to the low power of
 the relevant tests in relatively small samples. In Granger causality
 tests, more evidence is found of causality running from lagged revenue to
 current performance than of causality in the opposite direction, while the
 dependence of performance on revenue seems to be greater for the smaller
 clubs than for the larger. These results lend empirical support to the
 popular view that, unless checked by mechanisms for revenue redistribution
 within the league, the natural tendency is for success to become
 concentrated increasingly among a small group of elite, wealthy clubs. 
Journal: Applied Economics 
Pages: 1641-1651 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324715 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324715 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1641-1651




Template-Type: ReDIF-Article 1.0
Author-Name: Marten Palme 
Author-X-Name-First: Marten 
Author-X-Name-Last: Palme 
Author-Name: Robert Wright 
Author-X-Name-First: Robert 
Author-X-Name-Last: Wright 
Title: Changes in the rate of return to education in Sweden: 1968-1991 
Abstract:
  This paper estimates changes in the rate of return to education in Sweden
 between 1968 and 1991. Both the 'quantity' (years of schooling completed)
 and 'quality' (highest qualification obtained) dimensions of education are
 considered. Adopting a human capital approach, the rate of return is
 measured in terms of differences in wage rates associated with differences
 in education. Both quadratic wage and cubic spline wage functions are
 estimated. The data used are from the 1968, 1981 and 1991 Swedish Level of
 Living Surveys. 
Journal: Applied Economics 
Pages: 1653-1663 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324724 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324724 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1653-1663




Template-Type: ReDIF-Article 1.0
Author-Name: Jarkko Turunen 
Author-X-Name-First: Jarkko 
Author-X-Name-Last: Turunen 
Title: Disaggregated wage curves in the United States: evidence from panel data of young workers 
Abstract:
  The paper presents wage curve results disaggregated over time, by
 individual characteristics, occupations, industries and regions in the
 United States, using a panel data set of young workers. The results
 suggest that instead of a strong aggregate wage curve there are a number
 of different wage curves over time, and for different worker groups. The
 slope of the aggregate wage curve varies over time, with the strongest
 wage curves in the late 1980s. Wage curves exist for most labour market
 groups: the wages of the least educated, Hispanics, those in relatively
 low-skill occupations or service industries are most sensitive to changes
 in unemployment. Wages of government workers and those in the mining
 industry increase with unemployment. Finally, wage curves are steepest in
 the western states. 
Journal: Applied Economics 
Pages: 1665-1677 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324733 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1665-1677




Template-Type: ReDIF-Article 1.0
Author-Name: William Pedersen 
Author-X-Name-First: William 
Author-X-Name-Last: Pedersen 
Title: Capturing all the information in foreign currency option prices: solving for one versus two implied variables 
Abstract:
  The information content of option prices has traditionally been expressed
 in an implied volatility parameter which is characterized as capturing the
 markets expectations about future volatility of the underlying asset.
 Researchers normally solve for an implied volatility alone. A more recent
 trend has been to solve for both an implied interest rate and standard
 deviation simultaneously. This study compares the proficiency of these two
 techniques in capturing the information in the market prices of foreign
 currency options. The results show that solving for two implied variables
 consistently yields less information than solving for an implied
 volatility alone. This raises the implication that by trying to reduce one
 source of bias by solving for two variables simultaneously, researchers
 may be introducing a more serious source of error resulting in a dilution
 of the available information. 
Journal: Applied Economics 
Pages: 1679-1683 
Issue: 12 
Volume: 30 
Year: 1998 
X-DOI: 10.1080/000368498324742 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324742 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1679-1683




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: Editorial 
Abstract:
Journal: Applied Economics 
Pages: 1-1 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324499 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324499 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:1-1




Template-Type: ReDIF-Article 1.0
Author-Name: Eric Hansen 
Author-X-Name-First: Eric 
Author-X-Name-Last: Hansen 
Title: A 'pricing-to-market' model with unobserved variables: explaining New Zealand's import prices 
Abstract:
  A model of 'pricing-to-market' (PTM) behaviour in import prices is
 developed for a small open economy to allow for two measurement problems:
 (i) that neither the marginal production cost of imported goods nor their
 corresponding (foreign-currency) export price are observable by the
 econometrician; (ii) that PTM behaviour, if it exists, alters the
 relationship between foreign countries' export price indices for total
 exports and the true, unobservable price index. The analysis shows that
 variations in the measured markup on import prices depends on the degree
 to which domestic demand is synchronized with world demand, whether
 bilateral exchange rate movements are due to domestic or foreign factors,
 and on the degree to which PTM behaviour differs from such behaviour in
 other countries. Equations estimated for the price of New Zealand (NZ)
 imports from the US strongly supports the model, and finds that the degree
 of PTM by US exporters in response to price and exchange rate movements is
 substantially greater in NZ than the average for other countries. However,
 the degree of PTM in NZ in response to excess demand is similar to that of
 other countries. 
Journal: Applied Economics 
Pages: 3-8 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324507 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324507 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:3-8




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Bailey 
Author-X-Name-First: Mark 
Author-X-Name-Last: Bailey 
Author-Name: Tony Mallier 
Author-X-Name-First: Tony 
Author-X-Name-Last: Mallier 
Title: The summer vacation: influences on the hours students work 
Abstract:
  The authors look at what determines the number of hours United Kingdom
 undergraduate students work in summer vacation employment. This is of
 interest because such employment is now, because of the nature of the
 United Kingdom Higher Education system, providing an important means of
 financing for students. They find the differing personal characteristics
 of students do not, either on their own or collectively, exert a
 significant influence on the total number of hours individual students
 were employed during their summer vacation. This finding would suggest
 that students were treated, in the labour market, as a homogeneous group
 although the students themselves exercised a degree of self-selection
 regarding the decision as to whether to seek full or part-time employment.
 A possible explanation for these findings is the similarity of the work
 being sought by students during the summer vacation. The authors find no
 evidence of a backward bending labour supply curve for students which may
 be due to the limited time period students were to spend in the labour
 market and the temptation of extra income to offset the need for loans. 
Journal: Applied Economics 
Pages: 9-15 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324516 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324516 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:9-15




Template-Type: ReDIF-Article 1.0
Author-Name: Nikiforos Laopodis 
Author-X-Name-First: Nikiforos 
Author-X-Name-Last: Laopodis 
Title: Optimal prediction rule: an application to debt reschedulings 
Abstract:
  This paper develops and tests a new model for assessing country credit
 risk and is called Multivariate Cumulative Sum. This model is dynamic in
 nature and allows the user to predict early enough a financial distress
 that could lead to debt rescheduling. The findings suggest that the model
 is capable of detecting potential debt - repayment difficulties as early
 as three years in advance. This has serious financing implications, since
 the lender can have ample time to re-evaluate his investment opportunities
 towards that country and thus avoid or limit a disastrous financial
 exposure. 
Journal: Applied Economics 
Pages: 17-26 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324525 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:17-26




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Belli 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Belli 
Author-Name: Qaiser Khan 
Author-X-Name-First: Qaiser 
Author-X-Name-Last: Khan 
Author-Name: George Psacharopoulos 
Author-X-Name-First: George 
Author-X-Name-Last: Psacharopoulos 
Title: Assessing a higher education project: a Mauritius feasibility study 
Abstract:
  The paper presents a cost-benefit analysis of a higher education project
 in Mauritius by using the rate of return and net present value methods,
 from the individual student and society's point of view. Although there
 exists a very rich literature on cost-benefit analysis of an education
 sector as a whole, we are not aware of published estimates at the
 individual project level. Monte Carlo techniques are used to test the
 robustness of the estimates regarding the costs and the benefits
 associated with this project. The results show that all programmes
 considered are good investments from both the private and the social point
 of view, although some programmes are more profitable than others. One
 important finding is that the combination of progressive taxation and the
 payment of tuition fees by students brings the private and social returns
 of this project to equilibrium. 
Journal: Applied Economics 
Pages: 27-35 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324534 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324534 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:27-35




Template-Type: ReDIF-Article 1.0
Author-Name: Sauwalak Kittiprapas 
Author-X-Name-First: Sauwalak 
Author-X-Name-Last: Kittiprapas 
Author-Name: PHILIP McCANN 
Author-X-Name-First: PHILIP 
Author-X-Name-Last: McCANN 
Title: Industrial location behaviour and regional restructuring within the Fifth 'Tiger' Economy: evidence from the Thai electronics industry 
Abstract:
  The paper investigates the location behaviour of firms in the electronics
 industry in Thailand. Our approach is to use a logit model in order to
 analyse how the characteristics of the firms and the regions are related
 to the location decisions of firms in these sectors. The logit results
 throw some light on the question of the nature of agglomeration behaviour
 in a developing economy in which the national spatial industrial structure
 is dominated by a single primal city. Our conclusions provide tentative
 support for a product-cycle argument of industrial concentration and
 dispersion. 
Journal: Applied Economics 
Pages: 37-51 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324543 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324543 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:37-51




Template-Type: ReDIF-Article 1.0
Author-Name: John Robst 
Author-X-Name-First: John 
Author-X-Name-Last: Robst 
Author-Name: Kathleen Cuson-Graham 
Author-X-Name-First: Kathleen 
Author-X-Name-Last: Cuson-Graham 
Title: The effect of uncertain educational requirements on education and wages 
Abstract:
  This paper examines the effects of uncertain educational requirements.
 The level of education required to enter an occupation varies with a
 number of factors. Workers may be uncertain as to their specific job when
 selecting an occupation, thus they are also uncertain as to how much
 education they will need. We find that occupations with more uncertainty
 pay males compensating wages; however females do not receive compensating
 wages. We also find a negative relationship between uncertain educational
 requirements and completed schooling for both men and women. 
Journal: Applied Economics 
Pages: 53-63 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324552 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:53-63




Template-Type: ReDIF-Article 1.0
Author-Name: Livio Di Matteo 
Author-X-Name-First: Livio Di 
Author-X-Name-Last: Matteo 
Title: Using alternative methods to estimate the determinants of cross-border trips 
Abstract:
  The relationship between quarterly same day automobile trips by Canadians
 to the United States and the real exchange rate over the period 1979 - 95
 is estimated using the parametric technique Ordinary Least Squares (OLS)
 and the nonparametric technique Locally Weighted Scatterplot Smoothing
 (LOWESS). The results suggest that there are important differences in the
 estimates generated across the two techniques. The nonparametric approach
 generates an inverse J-curve relationship between the two variables which
 implies that linear OLS estimates can yield substantial under-and
 overestimates of the dependent variable as the real exchange rate varies.
 This can have implications for applied researchers attempting to estimate
 models of tourism demand for forecasting purposes. At the very least, the
 nonparametric approach can help suggest a more flexible parametric
 functional form for multivariate regression that better reflects the data. 
Journal: Applied Economics 
Pages: 77-88 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324570 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:77-88




Template-Type: ReDIF-Article 1.0
Author-Name: Eugene Kouassi 
Author-X-Name-First: Eugene 
Author-X-Name-Last: Kouassi 
Author-Name: Bernard Decaluwe 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Decaluwe 
Author-Name: Crispin Kapombe 
Author-X-Name-First: Crispin 
Author-X-Name-Last: Kapombe 
Author-Name: Dale Colyer 
Author-X-Name-First: Dale 
Author-X-Name-Last: Colyer 
Title: Temporal causality and the dynamic interactions between terms of trade and current account deficits in co-integrated VAR processes: further evidence from Ivorian time series 
Abstract:
  This paper investigates the relationship between the terms of trade and
 current account deficits within a context of VECM. The results indicate
 that for the Coted'Ivoire there is a long-run relationship between the
 terms of trade and current account deficits. They also indicate that
 current account deficits in Cote-d'Ivoire cannot be explained by the terms
 of trade. A strong unidirectional relationship exists between current
 account deficits and the terms of trade since the first one Granger causes
 the second. Finally, dynamic simulations have indicated that a significant
 portion of fluctuations in the terms of trade is explained by current
 account deficits. In light of these findings, it can be concluded that
 economic policy in Cote-d'Ivoire should be carried out with extreme
 caution due to the nature of international commodity markets, the
 mechanism of the terms of trade's formation, and the relative exogeneity
 of current account deficits. 
Journal: Applied Economics 
Pages: 89-96 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324589 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324589 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:89-96




Template-Type: ReDIF-Article 1.0
Author-Name: Rasha Torstensson 
Author-X-Name-First: Rasha 
Author-X-Name-Last: Torstensson 
Title: Growth, knowledge transfer and European integration 
Abstract:
  It has been suggested that members in the EC or the EFTA experienced
 significantly higher growth rates compared to nonmember countries. This
 suggests that the European integration either captures omitted variables
 or that it gives rise to increased growth rates through enhanced
 investment and/or increased knowledge transfer. The present study attempts
 to resolve this issue. The analysis identifies a two-link chain between
 European integration (EI) and growth through investment. In addition, on
 examining whether there are any knowledge spillovers resulting from
 integration it is found that integrated countries do in fact experience
 more knowledge spillovers compared to nonintegrated countries. Employing
 both the neoclassical and endogenous growth approaches, it is found that
 trade variables are especially important for growth in Total Factor
 Productivity (TFP). The study is undertaken for a panel sample consisting
 of 20 OECD countries and covering three time periods between 1976 and
 1990. Special emphasis is placed on specification and sensitivity
 analysis. 
Journal: Applied Economics 
Pages: 97-106 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324598 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:97-106




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Hoster 
Author-X-Name-First: Frank 
Author-X-Name-Last: Hoster 
Title: Effects of a European electricity market on the German electricity industry: results from a simulation model of the European power systems 
Abstract:
  The introduction of an European common market for electricity and the
 opening of the power markets to eastern Europe and Scandinavia will have a
 drastic and lasting effect on the structure of the German electricity
 industry. This paper presents an evaluation of the possible effects of a
 single market especially on the power trade within Europe and the German
 power plant system. One special aspect is the investigation, whether a
 flooding of the German electricity market with French nuclear power could
 happen. Scenario simulations reject the argumentation that a European
 common market for electricity would lead to a dramatic increase in
 international electricity trade. 
Journal: Applied Economics 
Pages: 107-122 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324606 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324606 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:107-122




Template-Type: ReDIF-Article 1.0
Author-Name: Keith Bender 
Author-X-Name-First: Keith 
Author-X-Name-Last: Bender 
Author-Name: Peter Sloane 
Author-X-Name-First: Peter 
Author-X-Name-Last: Sloane 
Title: Trade union membership, tenure and the level of job insecurity 
Abstract:
  Recently there have been suggestions that job insecurity is on the
 increase. Two factors which may explain this are the reduced role of the
 trade unions and increasing flexibility in the labour market with an
 associated reduction in the proportion of workers in permanent fulltime
 employment. For the first time the relationship between trade union
 membership, tenure and the workers perception of job insecurity is
 examined using British data (drawn from the 1986/7 Social Change and
 Economic Life Initiative). Econometric evidence supports in part the view
 that while job insecurity encourages workers to join trade unions, overall
 trade unions tend to increase job security and also suggests that there is
 a strong relationship between tenure and job insecurity. 
Journal: Applied Economics 
Pages: 123-135 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324615 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324615 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:123-135




Template-Type: ReDIF-Article 1.0
Author-Name: Kare Johansen 
Author-X-Name-First: Kare 
Author-X-Name-Last: Johansen 
Title: Insider forces in wage determination: new evidence for Norwegian industries 
Abstract:
  Using panel data for Norwegian industries, we establish a significant
 permanent relation between industry wages and industry profitability. The
 estimated long-run insider weight is above 0.2 and stable both over time
 and across industries. Industry wages are significantly affected by
 aggregate unemployment, and the preferred wage equation implies a highly
 convex wage curve. 
Journal: Applied Economics 
Pages: 137-147 
Issue: 1 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324624 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324624 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:137-147




Template-Type: ReDIF-Article 1.0
Author-Name: Rumi Masih 
Author-X-Name-First: Rumi 
Author-X-Name-Last: Masih 
Title: An empirical analysis of the demand for commercial television advertising 
Abstract:
  The purpose of this paper is to provide an empirical analysis of the
 demand for commercial television advertising in the Sydney metropolitan
 market as a case study using unpublished quarterly data. Though the focus
 of the paper is empirical in nature, prior to this a simple oligopolistic
 framework is used to examine the influence of competition on TV
 advertising prices. Particular attention is paid to justifying the use of
 both short-and long-run time-series modelling techniques in order to
 derive respective short-and long-run price elasticities of demand. Results
 seem to suggest that the price elasticity of demand is robust in terms of
 theoretical expectation in sign and statistical significance, but
 substantially less than unity in the short run, and neighbouring unity in
 the long-run. These results seem to be consistent with the findings of
 Cave and Swann (Report of Committee on Financing the BBC, 1986) and
 Tavakoli, Swann and Cave (mimeo, Brunel University, 1989) for the British
 TV market, but differ from those of Hendry (Journal of Policy Modeling 14
 (3), 1992) who estimated much larger elasticities for the same market.
 Without digressing into welfare implications, we also discuss what
 implications our results would have for the TV industry if policy
 initiatives likely to expand advertising supply on commercial TV were
 implemented. 
Journal: Applied Economics 
Pages: 149-163 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324381 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324381 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:149-163




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Chow 
Author-X-Name-First: Peter 
Author-X-Name-Last: Chow 
Author-Name: Mitchell Kellman Yochanan 
Author-X-Name-First: Mitchell Kellman 
Author-X-Name-Last: Yochanan 
Title: A test of the Linder hypothesis in Pacific NIC trade 1965-1990 
Abstract:
  This paper examines the degree to which the taste similarity (Linder)
 hypothesis explains trade patterns between the 'Four Tigers' East Asian
 New Industrial Countries (NICs), and their major OECD markets (and
 suppliers). The tests cover the period 1965-90, during which trade between
 these countries expanded at unprecedented rates. The tests employ an
 extensive disaggregated data set including all manufactured exports from
 the East Asian NICs to various major OECD markets. A new measure of trade
 intensity is employed, thus correcting a potentially critical bias
 affecting previous studies in this area. The results tend to support the
 applicability of the taste - differential (Linder) model as an important
 explainer of the changing pattern of trade for this sample of trade
 partners. The findings are generally consistent with other intertemporal
 studies (which 'neutralize' spatial effects on trade, such as Kennedy, T.
 and McHugh, R., Southern Economic Journal, 46 (3), 898-903, 1980); and
 support Hanink, D. (Weltwirtschaftliches Archiv, 126 (2), 257-67, 1990)
 hypothesis that the Linder hypothesis may provide a relatively good
 explanation of trade for countries above some per capita income threshold,
 and for Linder's original (An Essay on Trade and Transformation, John
 Wiley, New York, 1961), and Grey, H.P.'s (Weltwirtschaftliches Archiv, 116
 (3), 447-70, 1980) suggestion that the hypothesis should prove especially
 applicable for trade in differentiated products. 
Journal: Applied Economics 
Pages: 175-182 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324408 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324408 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:175-182




Template-Type: ReDIF-Article 1.0
Author-Name: Alfonso Alba-Ramirez 
Author-X-Name-First: Alfonso 
Author-X-Name-Last: Alba-Ramirez 
Title: Explaining the transitions out of unemployment in Spain: the effect of unemployment insurance 
Abstract:
  A multinomial logit model and matched files from the Spanish Active
 Population Survey (EPA) are used to study transitions out of unemployment
 among men aged 20-59. In addition to demographic characteristics, other
 explanatory variables included in the regressions pertain to previous job
 characteristics and the spell of unemployment. In this article, special
 attention is paid to the impact of unemployment insurance benefits on the
 re-employment probability. Consistent with previous work, it is found that
 receipt of unemployment insurance is associated with lower probabilities
 of re-employment and of withdrawal from the labour force. More
 importantly, a differential effect of benefit receipt is obtained when
 comparing time periods before and after 1992. Indeed, in April of that
 year the labour authority made eligibility requirements for unemployment
 insurance more restrictive and curtailed benefit amounts. 
Journal: Applied Economics 
Pages: 183-193 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324417 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324417 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:183-193




Template-Type: ReDIF-Article 1.0
Author-Name: Victor M. Gonzalo Angulo 
Author-X-Name-First: Victor M. Gonzalo 
Author-X-Name-Last: Angulo 
Title: A structural VARMA approach to modelling the money supply process 
Abstract:
  A conceptual framework for research on the money supply process is
 presented and illustrated with empirical multivariate time series analyses
 of the Spanish case in monthly data from 1964 to 1990. Existing
 behavioural distinctions between monetary authority, private banking and
 private nonbanking sectors are employed, and these are formulated within a
 general, linear, nonexplosive, invertible multivariate stochastic process
 for the components of money multipliers. Behavioural distinctions are thus
 drawn directly in a very general, though empirically accessible, dynamic
 and stochastic framework. Identification hypotheses are suggested,
 allowing for a usable behavioural interpretation. The illustrative
 empirical work for the Spanish case reveals various directions in which
 the theoretical generality is relevant in practice. 
Journal: Applied Economics 
Pages: 195-206 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324426 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324426 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:195-206




Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Endoh 
Author-X-Name-First: Masahiro 
Author-X-Name-Last: Endoh 
Title: Trade creation and trade diversion in the EEC, the LAFTA and the CMEA: 1960-1994 
Abstract:
  In a simplified version of the gravity model, appropriate dummy variables
 have been introduced to analyse the effects of both trade creation and
 trade diversion by three economic organizations, the European Economic
 Community (EEC), the Latin American Free Trade Association (LAFTA) and the
 Council of Mutual Economic Assistance (CMEA), for the period 1960-94.
 Five-year intervals are the main subject of measurement. The results show
 that both trade creation dummies and trade diversion dummies have
 statistically significant coefficients, which show the appropriateness of
 this new approach. The trade creation effect and trade diversion effect of
 each institution are proved to be generally weakening during the 1990s. It
 is also observed that each Organization has a distinctive international
 trade character. For Japanese trade, a similar approach is used to analyse
 nonaligned trade by Japan, with particular interest in the effects of
 these three institutions on trade with Japan. The result is that there is
 no strong evidence that the EEC and the LAFTA trade with Japan any more or
 less than the hypothetical level predicted by basic explanatory variables,
 while the CMEA increased its trade with Japan up to the hypothetical level
 during the analysis period. 
Journal: Applied Economics 
Pages: 207-216 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324435 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324435 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:207-216




Template-Type: ReDIF-Article 1.0
Author-Name: Jayachandran Variyam 
Author-X-Name-First: Jayachandran 
Author-X-Name-Last: Variyam 
Author-Name: James Blaylock 
Author-X-Name-First: James 
Author-X-Name-Last: Blaylock 
Author-Name: David Smallwood 
Author-X-Name-First: David 
Author-X-Name-Last: Smallwood 
Title: Information, endogeneity, and consumer health behaviour: application to dietary intakes 
Abstract:
  Due to heightened public health interest, a growing number of consumer
 health behaviour studies are focusing on the effect of health information
 on the demand for health inputs and outcomes. Many of these studies,
 however, have overlooked the potential endogeneity of information
 variables stemming from unobserved individual heterogeneity. Due to
 simultaneity bias, ignoring endogeneity may lead to inaccurate estimates
 of informational effects on health behaviour. Using dietary intake data
 for fat, saturated fat, cholesterol, and fibre, this paper illustrates the
 pitfalls of treating health information related to these nutrients as
 exogenous variables in their demand equations. In most of the estimated
 models, the exogeneity of information is statistically rejected. When the
 information variables are treated as exogenous variables, their effects on
 dietary intakes are underestimated. The estimated effects of key intake
 determinants such as income, education, ethnicity, and race are also
 different in such a specification compared to a specification which treats
 information variables as endogenous. Implications for nutrition education
 policies are discussed. 
Journal: Applied Economics 
Pages: 217-226 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324444 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:217-226




Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Karras 
Author-X-Name-First: Georgios 
Author-X-Name-Last: Karras 
Author-Name: Houston Stokes 
Author-X-Name-First: Houston 
Author-X-Name-Last: Stokes 
Title: On the asymmetric effects of money-supply shocks: international evidence from a panel of OECD countries 
Abstract:
  We examine whether the asymmetric effect of money on output is an
 international phenomenon, and investigate the reasons for this asymmetry.
 Quarterly data from the 1963-93 period for a panel of twelve OECD
 countries strongly support asymmetry internationally: negative
 money-supply shocks are shown to have a stronger effect on output than
 positive shocks. Our methodology also enables us to distinguish between
 two sets of theories consistent with the output asymmetries: a convex
 aggregate supply and a credit view. We find that the effects of money on
 prices are generally symmetric, which may be consistent with both sets of
 theories being operative at once. 
Journal: Applied Economics 
Pages: 227-235 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324453 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324453 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:227-235




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dur 
Author-X-Name-First: Robert 
Author-X-Name-Last: Dur 
Title: Mismatch between unemployment and vacancies in the Dutch labour market 
Abstract:
  We analyse the importance of educational mismatch between vacancies and
 unemployment in the Dutch labour market. Using unemployment and vacancy
 data by educational level, we estimate a matching function which
 incorporates the effect of educational mismatch on the aggregate flow of
 filled vacancies. Using the estimated parameters, we calculate how much of
 total unemployment can be attributed to educational mismatch. The results
 indicate that educational mismatch is not an important determinant of
 unemployment in the Netherlands. Moreover, it shows a remarkable trend.
 Contrary to common belief, the relative importance of mismatch appears to
 have strongly decreased since the end of the 1960s. 
Journal: Applied Economics 
Pages: 237-244 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324462 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:237-244




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Antonio Alonso 
Author-X-Name-First: Jose Antonio 
Author-X-Name-Last: Alonso 
Title: Growth and the external constraint: lessons from the Spanish case 
Abstract:
  The present article attempts to determine the role played by the
 balance-of-payments constraint on economic growth in Spain (1960-94),
 using cointegration techniques. This empirical exercise also serves to
 reveal some shortcomings in the usual procedures for estimating
 Thirlwall's Law. In particular, the Spanish case reveals how important it
 is to introduce a variable that expresses the competitiveness gains
 generated by improvements in quality of the goods and services into the
 export function. It also demonstrates the inadequate simplification
 entailed in an a priori exclusion of relative prices in external
 equilibrium equation. Not taking these two aspects into consideration may
 give rise to an erroneous confirmation of Thirlwall's Law, especially if,
 as in the Spanish case, both effects offset each other. Finally, if the
 aim is to analyse long-term relationships between variables, it would seem
 advisable to use procedures, such as cointegration, with variables in
 levels. 
Journal: Applied Economics 
Pages: 245-253 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324471 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324471 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:245-253




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow 
Author-X-Name-First: Michael 
Author-X-Name-Last: Marlow 
Author-Name: Alden Shiers 
Author-X-Name-First: Alden 
Author-X-Name-Last: Shiers 
Title: Do law enforcement expenditures crowd-out public education expenditures? 
Abstract:
  As state and local governments have devoted a rising share of their
 resources to crime-related programmes, concerns have arisen that spending
 on other programmes such as education will fall. Coupled with growing
 public concerns over performance of the public education system, and
 expectations that prison populations will rise as states pass and enforce
 more stringent sentencing laws, it is not surprising that some view the
 expansion of crime-related programmes as troublesome. One hypothesis is
 that education and crime-related programmes directly compete for
 government expenditures so that what one programme gains the other must
 lose as in a fixed-pie situation. A competing hypothesis is that spending
 on these two public programmes are unrelated and therefore higher
 crime-related spending may also lead to higher taxes or public debt
 issuance, or to reduction in spending on programmes other than education.
 We estimate a three equation model of spending on crime-related
 programmes, spending on education, and the crime rate from which we
 directly test whether spending on crime and education influence each
 other. 
Journal: Applied Economics 
Pages: 255-266 
Issue: 2 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324480 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324480 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:255-266




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Winker 
Author-X-Name-First: Peter 
Author-X-Name-Last: Winker 
Title: Sluggish adjustment of interest rates and credit rationing: an application of unit root testing and error correction modelling 
Abstract:
  A model with credit rationing due to asymmetric information is combined
 with a marginal cost pricing approach to bank behaviour. The resulting
 model allows for explanation of the adjustment of deposit and loan rates
 to changes of the money market rate and is estimated in error correction
 form. Johansen's procedure is used to test the hypotheses. The hypothesis
 that deposit and loan rates do not adapt immediately to changes in the
 money market rate cannot be rejected based on German monthly data. The
 observation that loan rates react even slower than deposit rates can be
 rationalized by the effects of asymmetric information. 
Journal: Applied Economics 
Pages: 267-277 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324255 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324255 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:267-277




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Turner 
Author-X-Name-First: Paul 
Author-X-Name-Last: Turner 
Title: Alternative identifying restrictions in a model of UK real output and prices 
Abstract:
  This paper presents some simulation results for a small Structural Vector
 Autoregression model of the interaction between real output and prices for
 the UK economy. The model is estimated using quarterly data over the
 period 1966:2 to 1995:4. The effects of alternative identifying
 restrictions on the simulation properties of the model are considered and
 it is shown that the restriction of long run neutrality of real output
 with respect to demand shocks has a major impact. Even if long run
 neutrality is not imposed the results still indicate that most of the
 variance of real output over long forecasting horizons can be attributed
 to supply side disturbances. The model is used to analyse the role of
 demand and supply disturbances in explaining the three major recessions of
 the period and it is shown that each of these exhibits unique
 characteristics. 
Journal: Applied Economics 
Pages: 279-286 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324264 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324264 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:279-286




Template-Type: ReDIF-Article 1.0
Author-Name: Rickardo Brunton 
Author-X-Name-First: Rickardo 
Author-X-Name-Last: Brunton 
Author-Name: W. Robert 
Author-X-Name-First: W. 
Author-X-Name-Last: Robert 
Author-Name: J. Alexander 
Author-X-Name-First: J. 
Author-X-Name-Last: Alexander 
Title: Aggregate investment in New Zealand pre-and post-restructuring 
Abstract:
  The New Zealand economy has undergone a good deal of micro-economic and
 macro-economic reform in pursuit of higher economic growth. Investment is
 one of very few variables robustly associated with growth. We develop an
 eclectic model of investment demand and apply it to New Zealand data,
 concluding that, since restructuring began in 1984, the variables change
 in income and change in the real after-tax interest rate have become
 positively associated with investment. 
Journal: Applied Economics 
Pages: 287-292 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324273 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324273 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:287-292




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Huguet Roig 
Author-X-Name-First: Ana Huguet 
Author-X-Name-Last: Roig 
Title: Testing Spanish labour market segmentation: an unknown-regime approach 
Abstract:
  This paper studies the existence of two differentiated segments, primary
 and secondary, in the Spanish labour market. For this, a methodology
 (switching regression model with unknown regimes) is used which, on the
 one hand, does not demand a priori demarcation of segments and on the
 other, enables the allocation of workers to the segments to be treated as
 a factor endogenous to the model itself and closely connected with the
 wage-setting mechanisms operating in the segments. The empirical results
 show that the assignment to segments is not random and that there are
 substantial differences in the wage determination process between the two
 sectors. Furthermore, the model estimated has allowed analysis of the
 ex-post composition of the segments and corroboration, to a large extent,
 of the predictions of the dual labour market theory. 
Journal: Applied Economics 
Pages: 293-305 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324282 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324282 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:293-305




Template-Type: ReDIF-Article 1.0
Author-Name: Sunil Kanwar 
Author-X-Name-First: Sunil 
Author-X-Name-Last: Kanwar 
Title: Does risk matter? The case of wage-labour allocation by owner-cultivators 
Abstract:
  This study analyses the impact of revenue risk on the hiring-out
 behaviour of owner-cultivators. Since hiring-out is not certain, labour
 market risk is also allowed for. A large sample of owner-cultivators
 residing in semi-arid regions in India, and hence subject to high
 production and labour market risks, is used for this purpose. It is found
 that, possibly because production risks carry forward into the local
 labour market, households are unable to use the labour market as a hedge
 against production risk. We also find that labour force participation is
 positively affected by increases in the real wage rate, a result that is
 contrary to the findings of earlier studies using data from less developed
 agriculture. Several other insights also result. 
Journal: Applied Economics 
Pages: 307-317 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324291 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324291 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:307-317




Template-Type: ReDIF-Article 1.0
Author-Name: Monica Giulietti 
Author-X-Name-First: Monica 
Author-X-Name-Last: Giulietti 
Title: Price discrimination in grocery trade: evidence from Italy 
Abstract:
  This paper investigates the determinants of price dispersion between
 staple and non-staple goods in grocery retailing, as the result of pricing
 decisions by multiproduct firms. Theoretical predictions about the nature
 of supermarkets' pricing behaviour are compared and tested empirically
 using disaggregated data from the Italian grocery trade over the period
 1990 - 1992. The empirical results provide evidence for the existence, in
 all types of retail organization, of the form of price discrimination
 suggested by Bliss particularly for specialist shops. The results are
 consistent with discrimination due to the exploitation of consumers'
 switching costs. 
Journal: Applied Economics 
Pages: 319-329 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324309 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324309 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:319-329




Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon 
Author-X-Name-First: Franklin 
Author-X-Name-Last: Mixon 
Title: Customer return policies for experience goods: the impact of product price and consumer search costs on seller-provided informational cues 
Abstract:
  The present article provides an extension of previous theoretical
 arguments regarding customer return policies for experience goods. Logit
 regressions presented here suggest the importance of the 'full cost' to
 consumers of a purchase mistake, as proxied by experience goods prices and
 the time costs to consumers associated with search, in the seller's
 decision to produce information in advertisements regarding return
 policies. The evidence points out that sellers do respond in their
 decisions to produce information in a manner that reduces the total cost
 of voluntary exchange and maximizes seller profits. 
Journal: Applied Economics 
Pages: 331-336 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324318 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324318 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:331-336




Template-Type: ReDIF-Article 1.0
Author-Name: Bill Woodland 
Author-X-Name-First: Bill 
Author-X-Name-Last: Woodland 
Author-Name: Linda Woodland 
Author-X-Name-First: Linda 
Author-X-Name-Last: Woodland 
Title: Expected utility, skewness, and the baseball betting market 
Abstract:
  A subjective expected utility model is developed to explain the gambling
 behaviour of bettors on Major League Baseball games in the United States.
 Betting activity was examined over 15 seasons, for the period 1978 - 1992.
 The observed overbetting of favourite teams by baseball bettors can be
 reconciled without abandoning the traditional assumption of risk aversion.
 Additionally, there is some evidence to suggest that positive skewness has
 a discernible influence in the decision-making process for higher odds
 contests. 
Journal: Applied Economics 
Pages: 337-345 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324327 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324327 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:337-345




Template-Type: ReDIF-Article 1.0
Author-Name: Joe Tharakan 
Author-X-Name-First: Joe 
Author-X-Name-Last: Tharakan 
Title: Economic growth and exchange rate uncertainty 
Abstract:
  Recent research carried out within the framework of endogenous growth
 theory has confirmed the positive impact of the openness of an economy on
 its economic growth. This paper extends that line of investigation further
 and analyses the effect of exchange rate uncertainty (ERU) on growth.
 First, it is shown theoretically how ERU can adversely affect the
 endogenous growth process. Exchange rate uncertainty is then quantified
 for 21 OECD countries. Finally, panel regressions which use the above
 measures of ERU together with other determinants are carried out to
 explain the growth rates of the above group of countries. Results show
 that exchange rate uncertainty has a negative impact on long-term growth. 
Journal: Applied Economics 
Pages: 347-358 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324336 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324336 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:347-358




Template-Type: ReDIF-Article 1.0
Author-Name: Jacques Silber 
Author-X-Name-First: Jacques 
Author-X-Name-Last: Silber 
Author-Name: Michal Weber 
Author-X-Name-First: Michal 
Author-X-Name-Last: Weber 
Title: Labour market discrimination: are there significant differences between the various decomposition procedures? 
Abstract:
  Economists have usually called the proportion of the average wage gap
 between two groups which could not be explained by individual
 characteristics 'discrimination'. Recently, several theories have
 suggested that labour market discrimination, on the one hand, lowers the
 wages of the 'minority' group, and on the other, leads to higher pay for
 the 'majority' group. In a recent survey of the various methods used to
 decompose the overall wage differential between two groups, Oaxaca and
 Ransom compared five approaches in the contexts of race and gender
 discrimination. This paper checks whether there are significant
 differences between the various decomposition procedures which have
 appeared in the literature. The tests are based on bootstrap techniques. 
Journal: Applied Economics 
Pages: 359-365 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324345 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324345 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:359-365




Template-Type: ReDIF-Article 1.0
Author-Name: Kuo Huang 
Author-X-Name-First: Kuo 
Author-X-Name-Last: Huang 
Title: Effects of food prices and consumer income on nutrient availability 
Abstract:
  Economic factors such as food prices and consumer income affect food
 choices with consequences for the availability of nutrients. A new
 research model is developed to estimate how the availability of 28
 nutrients would change as consumers alter their food purchases in response
 to changes in food prices and income through the interdependent food
 demand relationships. 
Journal: Applied Economics 
Pages: 367-380 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324354 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:367-380




Template-Type: ReDIF-Article 1.0
Author-Name: Asatoshi Maeshiro 
Author-X-Name-First: Asatoshi 
Author-X-Name-Last: Maeshiro 
Title: A lagged dependent variable, autocorrelated disturbances, and unit root tests - peculiar OLS bias properties - a pedagogical note 
Abstract:
  The paper provides applied econometricians with a useful insight into the
 interaction between lagged dependent variables and autocorrelated
 disturbances. More specifically, the paper explains heuristically why, how
 and when the bias of the OLS estimator of the coefficient of a lagged
 dependent variable can be smaller when the disturbances are autocorrelated
 than when they are NID. It also explains why and how the powers and sizes
 of some of the unit root tests are distorted by AR(1) and MA(1)
 disturbances. The results should be of interest to applied econometricians
 using vector autoregressive or error-correction models as well. 
Journal: Applied Economics 
Pages: 381-396 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324363 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:381-396




Template-Type: ReDIF-Article 1.0
Author-Name: Hyeon-Seung Huh 
Author-X-Name-First: Hyeon-Seung 
Author-X-Name-Last: Huh 
Title: How well does the Mundell-Fleming model fit Australian data since the collapse of Bretton Woods? 
Abstract:
  Australian time series for the nominal interest rate, real output, the
 nominal exchange rate, prices and nominal money since 1973 are
 characterized by a vector autoregressive process driven by five exogenous
 disturbances. Those disturbances are identified so that they can be
 interpreted as the five main sources of fluctuations found in the Mundell
 - Fleming model of a small open economy under flexible exchange rates,
 namely: world interest rate, aggregate supply, IS, money supply and money
 demand shocks. The dynamic responses of the estimated model to the
 structural shocks are analysed and shown to match most of the predictions
 of the Mundell - Fleming model. 
Journal: Applied Economics 
Pages: 397-407 
Issue: 3 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:397-407




Template-Type: ReDIF-Article 1.0
Author-Name: Deborah Haas-Wilson 
Author-X-Name-First: Deborah 
Author-X-Name-Last: Haas-Wilson 
Author-Name: Kristen Lindberg 
Author-X-Name-First: Kristen 
Author-X-Name-Last: Lindberg 
Title: Regulation and the optimal size and type of abortion provider 
Abstract:
  Between 1973 (the year the Supreme Court ruled in Roe v. Wade that women
 have the right to decide whether or not to terminate their pregnancies)
 and 1982, the number of abortion providers increased by 81 per cent.
 However, between 1982 and 1992, a period of increasing state-level
 abortion regulation, the number of abortion providers decreased by 18 per
 cent. We know very little about the factors that influence the willingness
 and ability of hospitals, clinics, and physicians to provide abortion
 services over time. Based on state data from 1978 to 1992, the results of
 this paper suggest that large abortion providers are better able to
 compete and survive in the market. Also clinics and physicians' offices
 appear to be gaining market share relative to hospitals. Further, this
 paper includes analysis of the impact of state-level Medicaid funding
 regulations on the number, size, and type of abortion provider. These
 results have important implications for women's access to abortion
 services and thus have important implications for infant and maternal
 health. 
Journal: Applied Economics 
Pages: 409-415 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324110 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324110 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:409-415




Template-Type: ReDIF-Article 1.0
Author-Name: Mickael Lothgren 
Author-X-Name-First: Mickael 
Author-X-Name-Last: Lothgren 
Author-Name: Magnus Tambour 
Author-X-Name-First: Magnus 
Author-X-Name-Last: Tambour 
Title: Bootstrapping the data envelopment analysis Malmquist productivity index 
Abstract:
  This paper presents a bootstrap approach to calculate confidence
 intervals for firm-specific Malmquist productivity indices obtained from
 data envelopment analysis (DEA) models. The bootstrap is easily
 implemented and allows identification of production units that have
 significant productivity changes. An application using data from Swedish
 eye-care departments is included. We find that 40% of departments have
 significant progress in productivity whereas only 10% of the departments
 have a significant regress in productivity. This differs from the original
 results where about half the sample have estimates of progress and the
 other half have estimates of regress in productivity. 
Journal: Applied Economics 
Pages: 417-425 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324129 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324129 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:417-425




Template-Type: ReDIF-Article 1.0
Author-Name: David Ansic 
Author-X-Name-First: David 
Author-X-Name-Last: Ansic 
Author-Name: Geoffrey Pugh 
Author-X-Name-First: Geoffrey 
Author-X-Name-Last: Pugh 
Title: An experimental test of trade hysteresis: market exit and entry decisions in the presence of sunk costs and exchange rate uncertainty 
Abstract:
  In the 1980s, the unresponsiveness of trade flows to exchange rate swings
 inspired models in which sunk costs in combination with exchange rate
 instability generate trade hysteresis, meaning that temporary exchange
 rate misalignments have a persistent effect on trade. This paper furnishes
 an empirical complement to the theoretical literature. First, it describes
 a computerized experiment in which 100 subjects generated over 1000
 decisions on market entry and exit under conditions congruent with a model
 of trade hysteresis developed by Paul Krugman. Secondly, these data are
 used to test the main predictions arising from the model. Our experiment
 bears out the main qualitative predictions of Krugman's model; in
 particular, that firms' trading policy is unresponsive to exchange rate
 movements over a wide range of values. Moreover, in the repeated-decision
 setting of the experiment, we find evidence that the stochastic behaviour
 of subjects' entry- and exit-price decisions tend towards consensus as
 they gain experience, even though they do not interact with one another
 during the experiment. This effect, which is not predicted in Krugman's
 model, supports the supposition that behaviour at the firm level in the
 presence of sunk costs and exchange rate uncertainty is a plausible
 microeconomic foundation for otherwise puzzling macroeconomic phenomena. 
Journal: Applied Economics 
Pages: 427-436 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:427-436




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Jaforullah 
Author-X-Name-First: Mohammad 
Author-X-Name-Last: Jaforullah 
Title: Production technology, elasticity of substitution and technical efficiency of the handloom textile industry of Bangladesh 
Abstract:
  A number of translog and Cobb-Douglas frontier production models were
 estimated for the Bangladesh handloom textile industry to investigate its
 production technology and technical efficiency in production. It was found
 that the technical efficiency of the industry in producing cloth was only
 41%. It was concluded that the industry might improve its technical
 efficiency by increasing its male/female labour ratio and yarn/capital
 ratio and decreasing its hired/family labour ratio and labour/capital
 ratio. The production technology of the industry was found to be
 characterized by a linearly homogeneous Cobb-Douglas function. The
 elasticity of substitution between labour and capital for the industry was
 found to be unity. 
Journal: Applied Economics 
Pages: 437-442 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324147 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324147 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:437-442




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Bishop 
Author-X-Name-First: Paul 
Author-X-Name-Last: Bishop 
Author-Name: Nick Wiseman 
Author-X-Name-First: Nick 
Author-X-Name-Last: Wiseman 
Title: External ownership and innovation in the United Kingdom 
Abstract:
  This paper examines the impact of ownership and a variety of other
 variables on the likelihood of innovation and the presence of an R&D
 function within a national sample of UK defence related firms. It is shown
 that foreign ownership has a negative indirect impact upon innovation.
 Mixed support is found for the Schumpeterian approach to innovation.
 Involvement in export markets, technological opportunity and R&D
 collaboration are shown to have a positive impact on innovation. 
Journal: Applied Economics 
Pages: 443-450 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324156 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324156 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:443-450




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Harris 
Author-X-Name-First: Richard 
Author-X-Name-Last: Harris 
Title: The determinants of work-related training in Britain in 1995 and the implications of employer size 
Abstract:
  This study uses a familiar set of variables to characterize the
 determinants of training (based around individual characteristics,
 qualifications, and workplace characteristics). However, it goes further
 by using data drawn from a recent quarter of the UK Labour Force Survey,
 and thus contains an up-to-date and extensive set of core variables. The
 dependent variable used covers three subgroups: those who have never been
 offered training by their current employer; those who have been offered
 but did not receive training in the last three months; and those workers
 who received training within the last three months. The hypothesis that
 large employers not only provide more work-related training, but that they
 are also more willing to train workers with characteristics that indicate
 a lower probability of obtaining a return on any investment outlay, is
 tested. This was confirmed (especially for male workers), along with a
 range of results that mostly accord with previous studies into the
 determinants of UK employer-based training. 
Journal: Applied Economics 
Pages: 451-463 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324165 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324165 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:451-463




Template-Type: ReDIF-Article 1.0
Author-Name: Dilip Dutta 
Author-X-Name-First: Dilip 
Author-X-Name-Last: Dutta 
Author-Name: Nasiruddin Ahmed 
Author-X-Name-First: Nasiruddin 
Author-X-Name-Last: Ahmed 
Title: An aggregate import demand function for Bangladesh: a cointegration approach 
Abstract:
  This paper investigates the existence of a long-run aggregate merchandise
 import demand function for Bangladesh during the period 1974 - 94. The
 cointegration and error correction modelling approaches have been applied.
 Empirical results suggest that there exists a unique long-run or
 equilibrium relationship among real quantitities of imports, real import
 prices, real GDP and real foreign exchange reserves. The dynamic behaviour
 of import demand has been investigated by estimating two types of error
 correction models, in which the error correction terms have been found
 significant. In model I, real import prices and real GDP (lagged one year)
 and in model II, real import prices, real GDP (lagged one year), real
 imports (lagged one quarter) and a dummy variable capturing the effects of
 import liberalization policies have all emerged as important determinants
 of import demand function. The error correction models have also been
 found to be robust as they satisfy almost all relevant diagnostic tests. 
Journal: Applied Economics 
Pages: 465-472 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324174 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324174 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:465-472




Template-Type: ReDIF-Article 1.0
Author-Name: Shabbar Jaffry 
Author-X-Name-First: Shabbar 
Author-X-Name-Last: Jaffry 
Author-Name: Sean Pascoe 
Author-X-Name-First: Sean 
Author-X-Name-Last: Pascoe 
Author-Name: Catherine Robinson 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Robinson 
Title: Long run price flexibilities for high valued UK fish species: a cointegration systems approach 
Abstract:
  In this paper, the own and cross-price flexibilities for four high valued
 species (bass, lobster, sole and turbot) landed in the UK are estimated.
 System of equation models were developed using the vector error correction
 model (VECM) approach. Johansen's multivariate approach was used to obtain
 estimates of the long run steady state relationship (vectors) between fish
 prices and landings. To find unique vectors (i.e. no interdependent
 vectors) zero restrictions on the coefficients of the price variables were
 applied so that the model effectively contained quantity independent
 variables only. The resulting vectors were four unique cointegration long
 run relationships of monthly fish prices and landings. Various tests
 suggested that the variables were I (1) nonstationary variables. The model
 also suggested that there are more than one cointegration vectors
 (relationships) between the variables. It was found that bass has the
 largest absolute long run own price flexibility. Bass and lobster were
 found to be weak substitutes while sole and turbot were found to be
 substitutes. The results suggest, however, that the relationship is not
 symmetrical, with the quantity of sole having a greater effect on the
 price of turbot than turbot on sole. 
Journal: Applied Economics 
Pages: 473-481 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324183 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324183 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:473-481




Template-Type: ReDIF-Article 1.0
Author-Name: Luca Stanca 
Author-X-Name-First: Luca 
Author-X-Name-Last: Stanca 
Title: Asymmetries and nonlinearities in Italian macroeconomic fluctuations 
Abstract:
  This paper reports the results of an empirical investigation of business
 cycle asymmetries in the Italian economy. Macroeconomic time series, both
 annual post-Unity and quarterly post-world war II, are subjected to
 nonlinearity and asymmetry tests. The dynamics of recessions and
 expansions are then modelled with threshold autoregressive and
 Markov-switching models. The paper shows that allowing for two regimes is
 sufficient to account for the finding of neglected nonlinearity. The
 results indicate that business cycle asymmetries can provide both an
 intuitive economic interpretation and a parsimonious representation of
 nonlinearities in macroeconomic time series. 
Journal: Applied Economics 
Pages: 483-491 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324192 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324192 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:483-491




Template-Type: ReDIF-Article 1.0
Author-Name: Andy Kwan 
Author-X-Name-First: Andy 
Author-X-Name-Last: Kwan 
Author-Name: John Cotsomitis 
Author-X-Name-First: John 
Author-X-Name-Last: Cotsomitis 
Author-Name: Benjamin Kwok 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Kwok 
Title: Exports, economic growth and structural invariance: evidence from some Asian NICs 
Abstract:
  In this paper we use the exogeneity techniques developed by Engle and
 Hendry (Journal of Econometrics, 1993, 56, pp. 119-39) and data from three
 Asian NICs to test the invariance assumption of the export-led growth
 hypothesis. 
Journal: Applied Economics 
Pages: 493-498 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324200 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324200 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:493-498




Template-Type: ReDIF-Article 1.0
Author-Name: David Greasley 
Author-X-Name-First: David 
Author-X-Name-Last: Greasley 
Author-Name: Les Oxley 
Author-X-Name-First: Les 
Author-X-Name-Last: Oxley 
Title: International evidence on shock persistence: structural change, nonlinearities and subsample robustness 
Abstract:
  Testing for unit roots and the related issue of measuring shock
 persistence has attracted considerable theoretical and applied econometric
 interest. The issue of the size of the random walk component raised by
 Cochrane (Journal of Political Economy, 96, 893-920, 1988) has been
 extended in the work of other authors. Leung (Economics Letters, 40,
 435-44, 1992), in particular, considers the effects of structural breaks
 on measures of persistence. In this paper we consider new results for the
 effects of structural change, nonlinearities and subsample robustness on
 spectral-based measures of persistence illustrating the potential problems
 via an updated and extended version of the Cogley (Journal of Political
 Economy, 98, 501-18, 1990) data set. We find that significant structural
 breaks exist in the majority of the series investigated. Furthermore,
 measured persistence differs markedly across distinct periods with the
 assumption of common growth rates over very long periods leading on
 occasions to potentially erroneous conclusions on the degree of
 persistence. Nonlinearities measured by the significance of time squared
 (TSQ), seem important in many cases, particularly post-World War Two
 (WW2), potentially explaining the apparently high levels of post-WW2
 persistence. The paper concludes with a warning on the use of measures of
 persistence when the data include structural change and/or nonlinearities,
 highlighting the importance of the correct choice for breakpoints and
 second sub-sample start points. 
Journal: Applied Economics 
Pages: 499-507 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324219 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324219 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:499-507




Template-Type: ReDIF-Article 1.0
Author-Name: Christis Tombazos 
Author-X-Name-First: Christis 
Author-X-Name-Last: Tombazos 
Title: The role of imports in expanding the demand gap between skilled and unskilled labour in the US 
Abstract:
  A unit cost function is employed, in the context of the production theory
 approach, to estimate the Allen - Uzawa effect of aggregate imports on
 skilled and unskilled labour in the US. The model corrects for two
 ubiquitous shortcomings of similar studies: (i) their disregard for the
 role of nonmanufactured imports, including imports of services, in
 domestic production, and (ii) their inability to capture, in addition to
 the conventional domestic-output-substitution effects of the
 Stolper-Samuelson variety, the impact of imports on the demand for primary
 factors that is generated via domestic factor-using downstream processes.
 To circumvent curvature related problems, often associated with similar
 studies that do not invoke separability, we combine the global imposition
 of concavity with a symmetric normalized quadratic representation of the
 unit cost function (that remains flexible after curvature enforcing
 reparametrizations). The results confirm the notion that imports hurt
 unskilled labour. However, they also reveal a previously ignored positive
 impact of aggregate imports on the demand for skilled labour that is
 qualitatively independent of the measure of skill employed. This result is
 attributed to skill intensive downstream processes of aggregate imports
 and reaffirms the importance of 'downstream handling' in stimulating
 labour demand first identified by Aw and Roberts (Review of Economics and
 Statistics, 67, 109-17, 1985). 
Journal: Applied Economics 
Pages: 509-516 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324228 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324228 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:509-516




Template-Type: ReDIF-Article 1.0
Author-Name: Omer Ozcicek 
Author-X-Name-First: Omer 
Author-X-Name-Last: Ozcicek 
Author-Name: W. DOUGLAS McMILLIN 
Author-X-Name-First: W. DOUGLAS 
Author-X-Name-Last: McMILLIN 
Title: Lag length selection in vector autoregressive models: symmetric and asymmetric lags 
Abstract:
  This study used Monte Carlo simulations to study the performance of
 alternative lag selection criterion for symmetric lag and asymmetric lag
 vector autoregressive models. Lag models with short lags and with long
 lags were considered. The alternative criteria considered were the AIC,
 SIC, Phillips' Posterior Information Criterion, and Keating's modification
 of the AIC and SIC. The alternative criteria were evaluated by computing
 the frequency distribution of lags selected, by computing the
 out-of-sample forecasting performance of models with lags selected using
 each criterion, and by comparing the ability of models with lags selected
 using each criterion to mimic the 'true' impulse response functions for
 the lag model. 
Journal: Applied Economics 
Pages: 517-524 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324237 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324237 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:517-524




Template-Type: ReDIF-Article 1.0
Author-Name: Urvashi Dhawan 
Author-X-Name-First: Urvashi 
Author-X-Name-Last: Dhawan 
Author-Name: Bagala Biswal 
Author-X-Name-First: Bagala 
Author-X-Name-Last: Biswal 
Title: Re-examining export-led growth hypothesis: a multivariate cointegration analysis for India 
Abstract:
  This paper re-examines the export-led-growth (ELG) hypothesis using a
 vector autoregressive (VAR) model by considering the relationship between
 real GDP, real exports and terms of trade for India during the period
 1961-93. In re-examining the ELG hypothesis, this study, perhaps for the
 first time, employs a multivariate framework using Johansen's model
 selection and maximum likelihood cointegration procedure. The results
 sugest that there is one long-run equilibrium relationship among the three
 variables, and the causal relationship flows from the growth in GDP and
 terms of trade to the growth in exports. The causality from exports to GDP
 appears to be a short run phenomenon, suggesting that the recent export
 promotion strategies adopted in India have the potential of bearing growth
 in the future. 
Journal: Applied Economics 
Pages: 525-530 
Issue: 4 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324246 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324246 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:525-530




Template-Type: ReDIF-Article 1.0
Author-Name: John Wells 
Author-X-Name-First: John 
Author-X-Name-Last: Wells 
Title: Seasonality, leading indicators, and alternative business cycle theories 
Abstract:
  Rolling regressions and Granger causality tests are used to examine the
 predictive ability of seasonally adjusted and unadjusted leading economic
 indicators for the US economy. Many of the unadjusted variables perform
 better than their adjusted counterparts, but asymmetric behaviour is also
 evident. Alternative leading indicators such as the bond spread and the
 Fed Funds rate do not predict cycles as well as real money balances.
 Unadjusted real business failure liabilities and business formation also
 appear to perform well. 
Journal: Applied Economics 
Pages: 531-538 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323986 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323986 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:531-538




Template-Type: ReDIF-Article 1.0
Author-Name: Tikva Lecker 
Author-X-Name-First: Tikva 
Author-X-Name-Last: Lecker 
Author-Name: Yochanan Shachmurove 
Author-X-Name-First: Yochanan 
Author-X-Name-Last: Shachmurove 
Title: Immigration and socioeconomic gaps: theory and applications 
Abstract:
  During the first decade of Israel's existence large waves of immigrants
 came from Europe and the Middle East. This paper introduces an empirical
 study which compares the occupational socioeconomic score differentials
 between ethnic groups within and outside the kibbutz. The three groups
 examined are from Asia and Africa, from Europe and America, and the
 native-born population. It is found that the occupational socioeconomic
 score differentials after migration are lower in the kibbutz than outside
 it and that socioeconomic gaps outside the kibbutz increase after
 migration. In this paper, a model is presented which explains the
 empirical results. It compares the effects of migration inside the
 kibbutz, organized as a labour-managed firm, with the effects of migration
 inside the city, assumed to be organized as a perfectly competitive firm.
 The model also develops a gap function that quantifies the socioeconomic
 gaps and uses iso-gap curves to compare the premigration and postmigration
 gaps. 
Journal: Applied Economics 
Pages: 539-549 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323995 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323995 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:539-549




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Buchmueller 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Buchmueller 
Title: Fringe benefits and the demand for part-time workers 
Abstract:
  In the US, tax code nondiscrimination rules and other institutional
 constraints require employers to offer the same fringe benefits to all
 full-time workers, but allow them to deny benefits to part-time workers.
 As a result, firms that offer generous fringe benefits to higher skill
 workers have an incentive to hire lower skill workers on a part-time or
 contingent basis. This paper uses cross-section establishment data to
 investigate the effect of employer-provided fringe benefits on the demand
 for part-time workers. The results indicate that firms that offer more
 generous fringe benefits make greater use of low wage part-time workers;
 there is no significant relationship between fringe benefits and the
 proportion of high wage workers employed part-time. 
Journal: Applied Economics 
Pages: 551-563 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324002 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:551-563




Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Parra Frutos 
Author-X-Name-First: Isabel Parra 
Author-X-Name-Last: Frutos 
Author-Name: Joaquin Aranda Gallego 
Author-X-Name-First: Joaquin Aranda 
Author-X-Name-Last: Gallego 
Title: Multiproduct monopoly: a queueing approach 
Abstract:
  Using queuing theory to model traditional market structures can provide
 interesting insights into the underlying mechanisms. Many characteristics
 of markets are well known, but queuing models often illustrate these in a
 novel manner. A stochastic model of multiproduct monopoly with impatient
 consumers is developed. The model explicitly allows for congestion
 effects. A monopoly that offers two services distinguished only by a time
 element, that is, where two distinct service rates apply is considered.
 Two different classes of consumer are considered according to their
 waiting time tolerances. Given assumptions about dynamic consumer choice
 behaviour, queuing theory techniques are used to derive market share and
 effective demand details, for each class of consumer, in terms of the
 firm's pricing, quality, and processing speed policy. Economic analysis is
 performed allowing for the possibility of offering a reward when the
 consumer has to face a long queue. The economic summary provided forms the
 basis of a subsequent sensitivity analysis. 
Journal: Applied Economics 
Pages: 565-576 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324011 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:565-576




Template-Type: ReDIF-Article 1.0
Author-Name: Jorn Rattso 
Author-X-Name-First: Jorn 
Author-X-Name-Last: Rattso 
Title: Aggregate local public sector investment and shocks: Norway 1946 - 1990 
Abstract:
  Local public sector investment is determined in an environment of
 shifting economic conditions. Investments are investigated using an
 intertemporal decision model allowing for tests of forward looking
 behaviour and adjustments to expected and unexpected shocks. The
 econometric analysis of the aggregate local public sector over the period
 1946-1990 indicates that local and county governments are forward looking
 and have small adjustment costs to investment. In a full investment demand
 model, only unexpected changes of gross domestic product and unemployment
 are shown to be important in the short run. The central government has
 arranged stable revenue growth of the local public sector, but greater
 volatility in macroeconomic conditions has led to fluctuations in local
 public investment. 
Journal: Applied Economics 
Pages: 577-584 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:577-584




Template-Type: ReDIF-Article 1.0
Author-Name: Geraint Johnes 
Author-X-Name-First: Geraint 
Author-X-Name-Last: Johnes 
Title: Schooling, fertility and the labour market experience of married women 
Abstract:
  A model of career path choice is constructed for a sample of women taken
 from the 1991 US National Household Education Survey. This allows for
 simultaneity and selection effects in the relationship between regime
 choice and earning. It is established that, inter alia, expected earnings
 have a significant impact on the career path and the hours of work chosen
 by American women. The role played by formal schooling and by childrearing
 in the determination of carrier path is highlighted, and implications are
 discussed. 
Journal: Applied Economics 
Pages: 585-592 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:585-592




Template-Type: ReDIF-Article 1.0
Author-Name: J. Colin 
Author-X-Name-First: J. 
Author-X-Name-Last: Colin 
Author-Name: H. Jones 
Author-X-Name-First: H. 
Author-X-Name-Last: Jones 
Author-Name: Serge Nadeau 
Author-X-Name-First: Serge 
Author-X-Name-Last: Nadeau 
Author-Name: William Walsh 
Author-X-Name-First: William 
Author-X-Name-Last: Walsh 
Title: Ethnicity, productivity and salary: player compensation and discrimination in the National Hockey League 
Abstract:
  The paper considers the impact of potential minority (Francophone,
 American, European) ethnic (language, culture) discrimination on salary
 determination in the National Hockey League. Using player salary data for
 the 1989/90 season, a regression model of salary determination is
 constructed which includes variables measuring productivity (skills),
 market structure, and allows for several ethnic influences including
 minority discrimination, ethnically shaped consumer preferences and
 reservation wages. The basic conclusion is that wages are principally
 determined by productivity and market structure, and the only evidence of
 discrimination is found in the ethnically influenced consumer preference
 of American, as opposed to Canadian, teams. 
Journal: Applied Economics 
Pages: 593-608 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:593-608




Template-Type: ReDIF-Article 1.0
Author-Name: A. W. Dnes 
Author-X-Name-First: A. W. 
Author-X-Name-Last: Dnes 
Author-Name: J. S. Seaton 
Author-X-Name-First: J. S. 
Author-X-Name-Last: Seaton 
Title: The regulation of electricity: results from an event study 
Abstract:
  In this paper, event-study methods are used to compare the stock-market
 returns for the RECs with general stock-market returns to test the
 hypothesis that the regulatory package shows symptoms of capture by
 special interest groups over the 1991-95 period. The results show that
 some capture by the RECs may have occurred as they have earned abnormal
 market returns. However, regulatory events are heterogeneous in nature and
 actions taken over prices by the Director General of Electricity Supply
 (DGES) in 1995 appear to have reduced abnormal returns. As part of the
 study, we examine the impact on shareholders' returns of the DGES's
 controversial announcement in March 1995 of plans to tighten price
 controls on the RECs. The regulatory package appears to work reasonably
 well on balance. 
Journal: Applied Economics 
Pages: 609-618 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324057 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:609-618




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Papatheodorou 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Papatheodorou 
Title: The demand for international tourism in the Mediterranean region 
Abstract:
  The paper studies the demand for international tourism, in the
 Mediterranean region. First a review of the most important attempts to
 model econometrically the demand for international tourism in the past is
 given, followed by a formal presentation of the proposed theoretical
 model. In particular, a version of the Almost Ideal Demand System (AIDS)
 is adopted and a description of the variables involved and their sources,
 together with the estimation procedure, are provided. The diagrammatic
 analysis performed contributes to a better understanding of the evolution
 of the dependent variable over time. The results with respect to the
 expenditure as well as to the own- and cross-price elasticities may be
 regarded as econometrically satisfactory and a reasonable economic
 explanation is given. 
Journal: Applied Economics 
Pages: 619-630 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324066 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324066 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:619-630




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Lukacs 
Author-X-Name-First: Peter 
Author-X-Name-Last: Lukacs 
Title: Vertical integration, input contracts and the margins - concentration relationship 
Abstract:
  In recent years it has become common when specifying empirical price cost
 margins to use net output as opposed to the more usual gross output in the
 denominator. It has been noted that with gross output as the denominator
 the point estimate on concentration from a regression of margins on
 concentration is lower than with net output as the denominator and the
 estimate is frequently insignificant. The possible explanations that have
 been put forward to explain this empirical phenomenon are discussed and
 evidence is presented using data from the UK Census of Production and the
 UK Input Output tables. Neither theoretical nor empirical justification is
 found for the use of the adjusted margin but instead, it is suggested that
 the empirical phenomenon is caused by the omission of appropriate
 variables to control for contracting relations in purchasing intermediate
 inputs. 
Journal: Applied Economics 
Pages: 631-640 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324075 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:631-640




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony De Francesco 
Author-X-Name-First: Anthony 
Author-X-Name-Last: De Francesco 
Title: The relationship between unemployment and vacancies in Australia 
Abstract:
  The paper addresses the existence of an equilibrium
 unemployment-vacancies (UV) relationship in Australia. Cointegration test
 results suggest that no bivariate long-run (UV) relationship exists.
 Moreover, this finding fails to support the basic model of labour job
 search. However, a modified Beveridge Curve is proposed where it is found
 that a number of trivariate equilibrium relationships exist between
 unemployment, vacancies and one other variable; the replacement ratio, the
 proportion of long-term unemployed or the real wage. The existence of an
 equilibrium relationship in the multivariate framework is due to the
 endogenous modelling of the (un)employment flows which are assumed to be
 exogenous in the bivariate framework of the Beveridge Curve. 
Journal: Applied Economics 
Pages: 641-652 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324084 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324084 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:641-652




Template-Type: ReDIF-Article 1.0
Author-Name: S. Necmi 
Author-X-Name-First: S. 
Author-X-Name-Last: Necmi 
Title: Kaldor's growth analysis revisited 
Abstract:
  Kaldor's 'laws' on 'manufacturing as the engine of growth' have been
 tested using cross-country data, mainly from developing countries, for the
 period 1960-1994. Instrumental variable techniques were used to explore
 problems associated with simultaneity and spuriousness. It has been found
 that manufacturing output growth rate is exogenous as Kaldor envisaged and
 his 'laws' are applicable to most of the developing world. 
Journal: Applied Economics 
Pages: 653-660 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324093 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:653-660




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Otero 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Otero 
Title: The real exchange rate in Colombia: an analysis using multivariate cointegration 
Abstract:
  Johansen's analysis of cointegrated systems is used to build a model of
 the Colombian real exchange rate (RER). One cointegrating vector is found,
 which can be thought of as a long-run RER equation. The deviations of the
 RER from its long-run equilibrium relationship, after correcting for
 short-run dynamics, are interpreted as a measure of RER misalignment. The
 simulation performance of the model during the period of estimation and
 three years into the future is particularly good, with the simulated RER
 reproducing the long-run behaviour of the actual series. 
Journal: Applied Economics 
Pages: 661-671 
Issue: 5 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499324101 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324101 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:661-671




Template-Type: ReDIF-Article 1.0
Author-Name: Kari Heimonen 
Author-X-Name-First: Kari 
Author-X-Name-Last: Heimonen 
Title: Stationarity of the European real exchange rates-evidence from panel data 
Abstract:
  This paper employs a panel unit root test for the real exchange rates of
 13 EU member countries. The estimation period covers the EMS period from
 1980:1 to 1992:2 In contrast with the earlier panel unit root studies
 concerning purchasing power parity (PPP), effective real exchange rates
 are used. As a result, the non-stationarity of the real exchange rate was
 rejected. However, the half-life of the real exchange rate adjustment
 turned out to be long. Potential reasons for this might be the relatively
 short estimation period and the nature of the data. 
Journal: Applied Economics 
Pages: 673-677 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323887 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323887 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:673-677




Template-Type: ReDIF-Article 1.0
Author-Name: Eric Stone 
Author-X-Name-First: Eric 
Author-X-Name-Last: Stone 
Author-Name: Ronald Warren 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Warren 
Title: Customer discrimination in professional basketball: evidence from the trading-card market 
Abstract:
  This paper presents evidence on the existence of customer racial
 discrimination in professional basketball from recent prices for the
 trading cards of former players in the National Basketball Association.
 Data were collected on the 258 active roster players in the NBA during the
 1976-77 season, 133 of whom had cards issued that year. Maximum-likelihood
 estimation of a card-price equation is carried out, accounting both for
 the nonrandom selection of the players for whom cards exist and for
 left-censoring of the dependent variable. Overall, the empirical results
 suggest the absence of customer racial discrimination in the pricing of
 basketball trading cards. However, there is some evidence that the effect
 of career length on trading-card prices is lower for whites than for
 blacks, and that the card-price premium for players who subsequently
 coached in the NBA is lower for blacks than for whites. 
Journal: Applied Economics 
Pages: 679-685 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323896 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323896 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:679-685




Template-Type: ReDIF-Article 1.0
Author-Name: Khosrow Doroodian 
Author-X-Name-First: Khosrow 
Author-X-Name-Last: Doroodian 
Author-Name: Chulho Jung 
Author-X-Name-First: Chulho 
Author-X-Name-Last: Jung 
Author-Name: Roy Boyd 
Author-X-Name-First: Roy 
Author-X-Name-Last: Boyd 
Title: The J-curve effect and US agricultural and industrial trade 
Abstract:
  This paper examines the J-curve hypothesis for US agricultural and
 manufactured goods, using the Shiller lag model. The results support the
 J-curve effect for agricultural goods, but not for manufactured goods.
 These findings explain why many studies in the literature fail to support
 the J-curve phenomenon. There are two explanations for these findings: (1)
 the aggregation bias of data that combine both agricultural and
 manufactured goods and (2) the country under study is often an industrial
 nation like the US or Japan with a high proportion of manufactured goods
 in both exports and imports. 
Journal: Applied Economics 
Pages: 687-695 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323904 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323904 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:687-695




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Lucke 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Lucke 
Title: Expansionary fiscal contractions and equilibrium indeterminacy: a case study for Germany 
Abstract:
  On several occasions, the 1980s witnessed non-Keynesian effects of fiscal
 contractions. Most notably, cuts in government spending in Ireland,
 Denmark and Germany are known to have coincided with increases in private
 consumption spending. Self-fulfilling expectations about the effects of
 stabilization policies may explain these and a diversity of opposing
 experiences. This paper formulates a dynamic stochastic equilibrium model
 with equilibrium indeterminacy, which allows for sunspot fluctuations as
 well as for systematic consumption effects of government policy in either
 direction. Cointegration tests and Euler equation estimates suggest that
 the model is approximately in accord with German data. Parameter estimates
 imply that the non-Keynesian experiences are not due to self-fulfilling
 expectations but to the productivity effects of government-provided
 infrastructure services. 
Journal: Applied Economics 
Pages: 697-708 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323913 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323913 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:697-708




Template-Type: ReDIF-Article 1.0
Author-Name: Georges Menahem 
Author-X-Name-First: Georges 
Author-X-Name-Last: Menahem 
Title: A target level of risk model of respiratory pathologies and smoking behaviour 
Abstract:
  Levels of morbidity and healthcare utilization related to respiratory
 pathologies are correlated, first, with an indicator of the level of risk
 that individuals are prepared to take, namely their 'individual target
 level of risk', and then secondly with smoking behaviour. The results
 based on a French survey with a sample of 13 150 individuals show that
 higher target levels of risk are associated with a higher probability of
 being ill, with higher levels of tobacco consumption but with lower levels
 of consumption of preventive medicine. More generally, this article shows
 how a target level of risk model can be formalized in an economic
 optimizing approach. 
Journal: Applied Economics 
Pages: 709-722 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323922 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323922 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:709-722




Template-Type: ReDIF-Article 1.0
Author-Name: David Prescott 
Author-X-Name-First: David 
Author-X-Name-Last: Prescott 
Author-Name: Bo Wandschneider 
Author-X-Name-First: Bo 
Author-X-Name-Last: Wandschneider 
Title: Public/private sector wage differentials in Canada-evidence from the 1991 and 1982 surveys of consumer finance 
Abstract:
  This paper extends the work of Gunderson and Shapiro and Stelcner that
 considered wage differentials between public and private sector workers in
 Canada using the 1971 and 1981 Censuses, respectively. Here the Survey of
 Consumer Finances from 1991 and 1982 is used, which allows for better
 distinction between public and private sector workers. The estimated
 public sector premium is decomposed into an endowments component and a
 residual term. Estimates are corrected for sample selection bias with
 respect to the choice between full-time and part-time work in the two
 sectors. Tests for bias caused by self-selection into the private and
 public sectors revealed no such bias. As a benchmark, the overall wage
 premium calculated for 1981 compares very well with that of Shapiro and
 Stelcner. During the 1980s no significant increases in the public sector
 wage premium for males are found but the female premium increased
 significantly. This may be due to changes in pay equity legislation in the
 public sector relative to the private sector. 
Journal: Applied Economics 
Pages: 723-731 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323931 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323931 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:723-731




Template-Type: ReDIF-Article 1.0
Author-Name: Franz Hackl 
Author-X-Name-First: Franz 
Author-X-Name-Last: Hackl 
Author-Name: Gerald Pruckner 
Author-X-Name-First: Gerald 
Author-X-Name-Last: Pruckner 
Title: On the gap between payment card and closed-ended CVM-answers 
Abstract:
  The paper presents contingent valuation (CV) estimates of benefits
 provided by a proposed 'Kalkalpen' National Park in Austria. Although
 descriptive results of welfare measures are presented, the focus of the
 paper is on methodological questions concerning the analysis of CV
 answers. Evidence is given regarding the difference between payment card
 (PC) answers and closed-ended question formats. Based on different
 estimation models for CV questions substantial differences are found
 between closed-ended and payment card welfare measures. On average
 PC-willingness to pay (WTP) measures are below the closed-ended figures.
 Since the evaluation models are based on different premises in the
 calculation of WTP figures a more precise disclosure of the underlying
 evaluation methods is required if different question formats are compared
 to one another. Identical assumptions on the probability distributions
 have to be assumed whenever open- and closed-ended CV welfare measures are
 compared. Taking theoretical arguments into account the application of the
 closedended double-bounded Spike model that provides an average welfare
 measure is recommended. 
Journal: Applied Economics 
Pages: 733-742 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323940 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:733-742




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Kim 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Kim 
Author-Name: Noor Ghazali 
Author-X-Name-First: Noor 
Author-X-Name-Last: Ghazali 
Title: Has the effect of money shocks on interest rates really vanished? Further evidence of the liquidity effect 
Abstract:
  The liquidity effect of money shocks on the short-term interest rate has
 been an integral part of traditional macroeconomic policies and has
 witnessed renewed interest in recent years. The paper reports, contrary to
 some previous work, extensive evidence of the effect in several non-G7
 countries using the single-equation distributed-lag GARCH(p,q) estimation
 and the systems VAR estimation. The liquidity effect is shown to be alive
 and well in a sample of nine countries and this will shed much light on
 policy implications. 
Journal: Applied Economics 
Pages: 743-754 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323959 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323959 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:743-754




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Giosa 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Giosa 
Author-Name: Sheila Amin Gutierrez De Pineres 
Author-X-Name-First: Sheila Amin Gutierrez 
Author-X-Name-Last: De Pineres 
Title: Do government policies distort relative factor prices: evidence from Colombia 
Abstract:
  Developing countries have a variety of governmental and trade policies
 which are intended to affect the return to capital. In an estimation of
 the return to capital in Colombia an attempt is made to account for taxes,
 both direct and indirect, governmental subsidies, and trade taxes and
 subsidies. The economic income that accrues to Colombia's capital stock is
 estimated by estimating the growth of the capital stock and the net cash
 flows generated by that capital. Additionally, the average annual
 effective rate of protection to the manufacturing sector is estimated;
 then using these effective rates of protection, a test is made to
 determine if in fact protectionism affects the return to capital. Results
 reveal that there is a significant positive relationship between trade
 protection and the rate of return to capital in Colombia. Furthermore,
 support is found for a Stopler-Samuelson effect of higher prices in the
 labourintensive agricultural sector leading to decline in the return for
 capital. Therefore, government policies do in fact cloud market signals
 and distort relative factor prices resulting in the misallocation of
 resources. 
Journal: Applied Economics 
Pages: 755-759 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323968 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323968 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:755-759




Template-Type: ReDIF-Article 1.0
Author-Name: Yaacov Lavi 
Author-X-Name-First: Yaacov 
Author-X-Name-Last: Lavi 
Author-Name: Avia Spak 
Author-X-Name-First: Avia 
Author-X-Name-Last: Spak 
Title: The impact of pension schemes on saving in Israel 
Abstract:
  Israeli micro and macro data indicate that consumption smoothing is
 limited and thus pension savings increase private and national savings.
 Since private savings rates are, to a great extent, unequal across
 different income groups, saving is almost exclusively concentrated in the
 upper two quintiles. 
Journal: Applied Economics 
Pages: 761-774 
Issue: 6 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323977 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323977 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:761-774




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cook 
Author-Name: Sean Holly 
Author-X-Name-First: Sean 
Author-X-Name-Last: Holly 
Author-Name: Paul Turner 
Author-X-Name-First: Paul 
Author-X-Name-Last: Turner 
Title: DHSY revisited: the role of asymmetries 
Abstract:
  Davidson et al.'s data set is used to demonstrate the existence of a
 significant asymmetry in the adjustment of consumption towards
 equilibrium. The Granger-Lee and Escribano-Pfann methods of partitioning
 the error correction term are compared and it is shown that the latter
 produces better results in this case. It is concluded that adjustment is
 faster under conditions of recession than it is during boom periods. 
Journal: Applied Economics 
Pages: 775-778 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323742 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323742 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:775-778




Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton 
Author-X-Name-First: James 
Author-X-Name-Last: Thornton 
Title: The impact of medical malpractice insurance cost on physician behaviour: the role of income and tort signal effects 
Abstract:
  The paper examines the impact of medical malpractice insurance cost on
 physician behaviour. Changes in malpractice insurance premiums can
 potentially influence physician behaviour directly through income effects
 from changes in medical practice earnings, and indirectly through tort
 signal effects that indicate exposure to malpractice risk. A structural
 model of the physician/firm is estimated to assess the significance,
 magnitude, and relative importance of income and tort signal effects of
 premium changes on physician time allocation and service supply. Using
 data on solo practice physicians, evidence is found of both income and
 tort signal effects for primary care physicians and surgeons. Results also
 indicate that income effects have a relatively larger impact on measures
 of physician behaviour such as services provided and fees, while tort
 signal effects, which reflect defensive measures, have a much smaller
 impact. 
Journal: Applied Economics 
Pages: 779-794 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323751 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323751 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:779-794




Template-Type: ReDIF-Article 1.0
Author-Name: Liam Lenten 
Author-X-Name-First: Liam 
Author-X-Name-Last: Lenten 
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Title: Modelling the trend and seasonality in the consumption of alcoholic beverages in the United Kingdom 
Abstract:
  A univariate time series analysis of the consumption of beer, wine and
 spirits in the UK over the period 1964-1995 is presented. The analysis
 shows that the consumption of beer and wine exhibits stochastic
 seasonality while the consumption of spirits exhibits deterministic
 seasonality. Moreover, the three series are found to have stochastic
 trends. Analysis of the out-of-sample forecasting power of the various
 models reveals that the model with stochastic trend and seasonality is
 superior to other models. The results cast doubt on the validity and
 soundness of the practice of modelling the consumption of alcoholic
 beverages by assuming deterministic trend and seasonality. 
Journal: Applied Economics 
Pages: 795-804 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323760 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323760 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:795-804




Template-Type: ReDIF-Article 1.0
Author-Name: Tsung Wu Ho 
Author-X-Name-First: Tsung Wu 
Author-X-Name-Last: Ho 
Title: Export-orientation and investment-saving correlation: a case of Taiwan 
Abstract:
  Perfect capital mobility has been formulated as a saving-investment
 comovement in each country which is statistically insignificant from zero;
 thus, the low correlation has been interpreted as evidence that the
 domestic capital market is not internationally mobile. However, this
 argument may be invalid in an open economy because its national income
 responds to changes in exchange rate. According to open economy
 macroeconomics, domestic income will respond to changes in the nominal
 exchange rate (via trade), therefore, in an open export - oriented
 economy, the nominal exchange rate has larger impact on GDP, so that the
 domestic investment and saving ratios will be statistically significant
 from zero. This paper evaluates this argument in terms of Taiwan, which is
 not only an export-oriented economy, but also has been experiencing a
 sequence of financial openness policies since the mid-1970s. To correct
 for simultaneous equation bias and accounts for the nonstationarity of the
 underlying time series, Johansen's procedure and a non-linear
 single-equation ECM are used. Strong cointegration between investment and
 saving ratios is identified in Taiwan which supports our hypothesis. 
Journal: Applied Economics 
Pages: 805-813 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323779 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323779 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:805-813




Template-Type: ReDIF-Article 1.0
Author-Name: Lucia Parisio 
Author-X-Name-First: Lucia 
Author-X-Name-Last: Parisio 
Title: A comparative analysis of European railroads efficiency: a cost frontier approach 
Abstract:
  The paper analyses the issue of cost efficiency for eight main European
 railroads in a sample period of 17 years. Measures of technical and
 allocative efficiency are obtained from a stochastic cost frontier model,
 with minimal cost described by a translog cost system. In the model, the
 cost of allocative inefficiency is estimated simultaneously from the
 shares' errors, whereas technical inefficiency is modelled by a (half
 normal) positive departure from the cost frontier. Results show a
 negligible effect of allocative inefficiency on firms' costs, whereas the
 cost of technical inefficiency appears to be significant. 
Journal: Applied Economics 
Pages: 815-823 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323788 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:815-823




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: The asymmetric stabilizing effects of price flexibility: historical evidence and implications 
Abstract:
  The evidence of business cycles across a sample of industrial countries
 indicates asymmetry in the output and price adjustments to aggregate
 demand shocks in the pre- and post-war periods. Upward price flexibility
 is significant in moderating output fluctuations across countries in the
 pre- and post-war periods. Nonetheless, the effect of upward price
 flexibility in accelerating trend price inflation is more evident across
 countries in the post-war period compared to the pre-war period. The
 combined evidence is consistent with a steeper supply curve in the face of
 expansionary demand shocks that increases the stabilizing effect of upward
 price flexibility. In contrast, a flatter supply curve in the face of
 negative demand shocks has countered the stabilizing function of downward
 price flexibility, which appears insignificant across countries in the
 pre- and post-war periods. In addition, a slower demand response to price
 change during recessions has further reinforced the contractionary effect
 on output despite a large reduction in price inflation across countries in
 the pre-war period. Apparent differences in the implications of upward and
 downward price flexibility point to the importance of policy intervention
 to moderate output contraction during recessions and price inflation
 during expansions. 
Journal: Applied Economics 
Pages: 825-839 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:825-839




Template-Type: ReDIF-Article 1.0
Author-Name: Agustin Garcia Garcia 
Author-X-Name-First: Agustin Garcia 
Author-X-Name-Last: Garcia 
Title: Consumption of Spanish households: evidence from cohort data 
Abstract:
  In this paper, empirical evidence on elasticity of intertemporal
 substitution for Spanish household consumption is shown. Several recent
 studies have rejected the lifecycle-permanent income hypothesis using
 aggregate time series. The rejection of the theory has often been blamed
 on the restrictive assumptions adopted in order to test the hypothesis.
 This article tests the household behaviour using cohort data from the
 Spanish Encuesta Continua de Presupuestos Familiares (Continuous Survey of
 Household Budgets). This source allows us to relax some of the most
 restrictive assumptions by using data with a certain degree of
 disaggregation. Evidence of consumer behaviour following the theory is
 found. Indirect evidence of liquidity constraints is also found and an
 alternative discount rate designed to be in better accordance with the
 theoretical foundations of the model is proposed. 
Journal: Applied Economics 
Pages: 841-855 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323805 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:841-855




Template-Type: ReDIF-Article 1.0
Author-Name: Gerard Go 
Author-X-Name-First: Gerard 
Author-X-Name-Last: Go 
Author-Name: David Kamerschen 
Author-X-Name-First: David 
Author-X-Name-Last: Kamerschen 
Author-Name: Charles Delorme 
Author-X-Name-First: Charles 
Author-X-Name-Last: Delorme 
Title: Market structure and price-cost margins in Philippine manufacturing industries 
Abstract:
  We test the hypothesis that variations in industry price-cost margins
 (PCM) performance are explained by sellers' various structure and conduct
 variables such as sellers' concentration (i.e., HHI for value added),
 capital-output ratio, barrier to entry, industry demand growth rate,
 import penetration export share, and degree of foreign participation
 (multinational) in four-digit Philippines Standard Industrial
 Classification manufacturing industries. The statistical analyses are a
 series of multiple regression equations relating the PCM to the
 previously-mentioned explanatory variables. Estimation results show a
 generally positive relationship between sellers' concentration, capital
 intensity, degree of foreign participation and the PCM. Industry growth
 rate may either increase or reduce PCM. Imports and exports lower PCM. 
Journal: Applied Economics 
Pages: 857-864 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323814 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323814 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:857-864




Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Berggren 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Berggren 
Author-Name: Matthew Sutton 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Sutton 
Title: Are frequency and intensity of participation decision-bearing aspects of consumption? An analysis of drinking behaviour 
Abstract:
  Analysing quantity consumed per-period implies a restriction on decisions
 about how frequently and intensely to consume. This 'quantity-hypothesis'
 is rejected based on estimated equations for the frequency and intensity
 of spirit consumption. Consequently, a simultaneous equation system for
 frequency and intensity is estimated as they enter the budget constraint
 as a multiplicative term. Income and education levels are found to be
 negatively related to intensity but not frequency. This may reflect
 differences in the shadow prices of frequency and intensity for different
 socioeconomic groups or heterogeneous preferences for intoxication and
 health. Distinguishing between these aspects of drinking patterns is
 important for the evaluation of the price-responsiveness of harmful
 drinking, restrictions on availability and the causes of inequalities in
 health. 
Journal: Applied Economics 
Pages: 865-874 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323823 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323823 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:865-874




Template-Type: ReDIF-Article 1.0
Author-Name: O. Homer Erekson 
Author-X-Name-First: O. Homer 
Author-X-Name-Last: Erekson 
Author-Name: Glenn Platt 
Author-X-Name-First: Glenn 
Author-X-Name-Last: Platt 
Author-Name: Christopher Whistler 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Whistler 
Author-Name: Andrea Ziegert 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Ziegert 
Title: Factors influencing the adoption of state lotteries 
Abstract:
  This paper explores the factors influencing the adoption of state
 lotteries in the United States. The conceptual framework utilizes a common
 utility framework in which a representative legislator maximizes utility
 derived from the current and expected fiscal position of a state, subject
 to a political constraint. The empirical results support the theoretical
 hypotheses, including the finding that changes in the fiscal health of the
 state, the predicted profit potential of a lottery, and the political
 climate of the state all affect the likelihood that a lottery is adopted.
 By introducing a sound conceptual framework, using better data than used
 in previous studies, utilizing an appropriate estimation technique, and
 obtaining strong results, this study advances our knowledge of why states
 adopt lotteries. 
Journal: Applied Economics 
Pages: 875-884 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323832 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323832 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:875-884




Template-Type: ReDIF-Article 1.0
Author-Name: Luanne Lohr 
Author-X-Name-First: Luanne 
Author-X-Name-Last: Lohr 
Author-Name: Timothy Park 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Park 
Title: Integrated markup rules for optimal pricing decisions in expanding markets for organic produce 
Abstract:
  In expanding markets, firms face uncertainty about demand response to
 changing conditions and the appropriate pricing response. Inclusion of
 retail demand factors in explaining markup decisions by wholesalers is
 crucial to accurate evaluation of the effects of price and market changes
 on profitability. We apply an integrated demand and markup model to
 markets for organic broccoli and carrots where wholesalers set markups
 facing retail demand. The estimated integrated system includes
 crossequation restrictions on organic and conventional prices received
 from retail, publicity about food safety scares and availability of a
 competing certification programme. The results show that organic
 wholesalers behave strategically in response to observable demand factors
 as they expand into fresh produce markets. Wholesalers arbitrage markups
 across items to increase market share, combining crop-specific and overall
 market information to decide on appropriate responses. Wholesalers also
 attempt to moderate markups in response to demand fluctuations in order to
 smooth market development. 
Journal: Applied Economics 
Pages: 885-892 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323841 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323841 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:885-892




Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Pons 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Pons 
Title: Evaluating the OECD's forecasts for economic growth 
Abstract:
  The size and nature of the errors in GDP forecasts in the G-7 countries
 from 1968 to 1995 are examined. These GDP estimates are published by the
 Organization for Economic Cooperation and Development in OECD Economic
 Outlook. Two alternative hypotheses are tested concerning why revisions
 arise. The first hypothesis is that preliminary announcement is simply the
 true variable measured with error. In this case, the preliminary
 announcement is an unconditionally unbiased but irrational forecast of the
 true value. That is, the revision is correlated with known variables. In
 particular, it is correlated with the preliminary announcement itself. The
 second hypothesis is that revisions arise because the early GDP estimates
 are a rational forecast of the true variable. In this case, the error is a
 rational forecast error and is therefore uncorrelated with known
 information. 
Journal: Applied Economics 
Pages: 893-902 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323850 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323850 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:893-902




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Title: Is the export-led growth hypothesis valid for Australia? 
Abstract:
  The relationship between exports and output is examined using Australian
 annual data over the period 1900-1993. Cointegration and causality testing
 fails to detect the existence of a long-run or short-run relationship
 between the two variables. These results are explained by restoring to the
 structural time series modelling approach which shows that while the
 output series exhibits cyclical variation, the exports series does not
 have this property. It is concluded that the export-led growth hypothesis
 is not valid for Australia. 
Journal: Applied Economics 
Pages: 903-906 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323869 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323869 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:903-906




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Weber 
Author-X-Name-First: Christian 
Author-X-Name-Last: Weber 
Title: Fiscal policy in general equilibrium: empirical estimates from an error correction model 
Abstract:
  Recent general equilibrium models of fiscal policy suggest that the
 government purchases multiplier can exceed unity and that the multiplier
 should be larger in the long run that in the short run. These results
 follow from dynamic supply-side interactions of labour and capital, and
 are in sharp contrast to the implications of earlier equilibrium models. A
 cointegrating regression and an error correction model are used to test
 these implications of the equilibrium model of fiscal policy empirically.
 Data for post-war USA provide strong empirical support for the equilibrium
 model. 
Journal: Applied Economics 
Pages: 907-913 
Issue: 7 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323878 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323878 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:907-913




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Faff 
Author-X-Name-First: Robert 
Author-X-Name-Last: Faff 
Author-Name: Richard Heaney 
Author-X-Name-First: Richard 
Author-X-Name-Last: Heaney 
Title: An examination of the relationship between Australian industry equity returns and expected inflation 
Abstract:
  This paper analyses the relationship between inflation and equity returns
 in Australia over the period January 1974 to March 1996. Analysis is based
 on monthly and quarterly data, using value weighted equity indices at both
 the aggregate market and industry level. Three price indices, the consumer
 price index (CPI) (quarterly) and the manufactured materials used index
 (MMU) and the manufacturing articles produced index (MAP) (both monthly
 and quarterly) are used to measure inflation. Results provide little
 evidence of the statistically significant negative relationship observed
 in the US for the full study period. Analysis is also conducted on three
 subperiods, 'monetary targeting' (July 1976-January 1985), 'checklist
 approach' (February 1985-December 1989) and anti-inflation (January
 1990-March 1996). At the market level the anti-inflation subperiod does
 provide some evidence of a negative relationship between inflation and
 equity returns though statistical significance is not apparent with
 quarterly time series. The impact of expected inflation on industry
 returns varies considerably. Consistent with the overall market analysis,
 the incidence of negative expected inflation betas increases in the latter
 anti-inflation subperiod. Finally, changes in Government inflation policy
 appear to have greatest impact on industrial company expected inflation
 betas. 
Journal: Applied Economics 
Pages: 915-933 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323643 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:915-933




Template-Type: ReDIF-Article 1.0
Author-Name: U. -G. Gerdtham 
Author-X-Name-First: U. -G. 
Author-X-Name-Last: Gerdtham 
Author-Name: C. Rehnberg 
Author-X-Name-First: C. 
Author-X-Name-Last: Rehnberg 
Author-Name: M. Tambour 
Author-X-Name-First: M. 
Author-X-Name-Last: Tambour 
Title: The impact of internal markets on health care efficiency: evidence from health care reforms in Sweden 
Abstract:
  A purchaser/provider split together with output-based reimbursement were
 recently introduced by several Swedish county councils. These changes have
 been motivated by arguments of efficiency and consumer choice. This paper
 tests the null hypothesis that hospital services are provided as
 efficiently by county councils with internal markets and output-based
 reimbursement as by county councils with budget reimbursement. We first
 estimate technical efficiency using data envelopment analysis and then we
 regress the efficiency scores as the dependent variable on new internal
 organizations in a multiple regression by use of pooled cross-section data
 for the 26 county councils for two years (1993 and 1994). The results
 reject our null hypothesis and we conclude that the organizational changes
 in the county councils improve health care efficiency. Our results further
 indicate that the potential savings in costs due to a hypothetical switch
 from budget based allocation to an output based allocation is about 13%.
 We also found some evidence indicating that county councils with a
 nonsocialist political majority are relatively more efficient than those
 with a socialist regime and that large county councils are more efficient
 than small county councils. 
Journal: Applied Economics 
Pages: 935-945 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323652 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323652 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:935-945




Template-Type: ReDIF-Article 1.0
Author-Name: Rtta Hanninen 
Author-X-Name-First: Rtta 
Author-X-Name-Last: Hanninen 
Author-Name: Anne Toppinen 
Author-X-Name-First: Anne 
Author-X-Name-Last: Toppinen 
Title: Long-run price effects of exchange rate changes in Finnish pulp and paper exports 
Abstract:
  This paper presents long-run exchange rate elasticities of Finnish
 newsprint and pulp export prices in the United Kingdom (UK) and Germany
 over the period 1980-94. The elasticities were estimated for a markup
 pricing model using Johansen's cointegration method. The magnitudes of the
 elasticity estimates obtained by imposing price homogeneity indicate that
 pass-through of exchange rate changes to export prices has been incomplete
 in both markets. For newsprint, the pass-through elasticity was 0.60 in
 the UK and 0.46 in Germany, which means that about one half of the changes
 in the exchange rates is reflected in prices as expressed in the
 destination countries' currencies and about a half in prices measured in
 Finnish markka. Instead, in pulp exports the pass-through elasticities
 differed from each other between the two destination countries more
 clearly than in newsprint exports, indicating a different pricing
 behaviour of Finnish pulp exporters in the UK and Germany when exchange
 rate changes. Pass-through was small in the UK pulp market (0.07) as
 compared to Germany (0.68). 
Journal: Applied Economics 
Pages: 947-956 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323661 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323661 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:947-956




Template-Type: ReDIF-Article 1.0
Author-Name: Kelly Giraud 
Author-X-Name-First: Kelly 
Author-X-Name-Last: Giraud 
Author-Name: John B. Loomis Richard 
Author-X-Name-First: John B. Loomis 
Author-X-Name-Last: Richard 
Author-Name: L. Johnson 
Author-X-Name-First: L. 
Author-X-Name-Last: Johnson 
Title: Two valuation questions in one survey: is it a recipe for sequencing and instrument context effects? 
Abstract:
  Economic theory suggests that willingness to pay for two goods
 independently offered should remain unchanged when the survey instrument
 changes slightly. Four survey treatments consisting of comprehensive good
 and a subset of that good were used. The surveys alternated in the
 question ordering and in the embedded good which accompanied the
 comprehensive good. We tested for sequencing and instrument context
 effects using both a combined and split sample designs. In the combined
 sample case we found some evidence to sequencing effects in the data
 containing the first subset good. Likelihood ratio tests indicated that
 sequencing did not effect scale or location of parameters. In the test for
 instrument context effects, evidence was found indicating context does
 effect willingness to pay estimates. 
Journal: Applied Economics 
Pages: 957-964 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323670 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323670 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:957-964




Template-Type: ReDIF-Article 1.0
Author-Name: Ferdaus Hossain 
Author-X-Name-First: Ferdaus 
Author-X-Name-Last: Hossain 
Title: Transitory and permanent disturbances and the current account: an empirical analysis in the intertemporal framework 
Abstract:
  The intertemporal models of current account determination demonstrate
 that in the analysis of the current account balance of a country, it is
 important to distinguish between transitory and permanent disturbances in
 income and relative prices. This paper attempts to decompose the observed
 data on income and real exchange rate into transitory and permanent
 components and then uses the decomposed series to test the empirical
 validity of the predictions of the intertemporal models. Evidence from the
 United States and Japan provide very limited support for the intertemporal
 models in terms of the effects of transitory and permanent changes in
 income on current account balance. For both US and Japan, the study finds
 that permanent changes in real exchange rate have significant effects on
 the current account balance. Statistical tests find no evidence of
 hysteresis in the trading relations of the two countries. 
Journal: Applied Economics 
Pages: 965-974 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323689 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323689 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:965-974




Template-Type: ReDIF-Article 1.0
Author-Name: Khalifa Ghali 
Author-X-Name-First: Khalifa 
Author-X-Name-Last: Ghali 
Title: Government size and economic growth: evidence from a multivariate cointegration analysis 
Abstract:
  This study uses multivariate cointegration techniques and attempts to
 model the dynamic interactions between government size and economic growth
 in a five variable system consisting of the growth rates of GDP, total
 government spending, investment, exports, and imports. Using data on ten
 OECD countries the analysis shows: (i) Government size Granger-causes
 growth in all the countries with some disparities concerning the
 proportion by which government size contributes to explaining future
 changes in the growth rates. An innovation shock at the growth rate of
 government size generates a permanent effect on the growth rate of GDP
 that, for some countries, reaches from 26% to 60% of the total change in
 growth: (ii) Government size also Granger-causes investment and
 international trade and, for some countries government size Granger-causes
 growth indirectly either through investment or the trade variables; and
 (iii) In almost all countries, international trade and investment generate
 permanent effects on growth. In particular we found that exports and
 imports do not have the same effects on growth as is the case in
 cross-country growth models. 
Journal: Applied Economics 
Pages: 975-987 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323698 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323698 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:975-987




Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Garin-Munoz 
Author-X-Name-First: Teresa 
Author-X-Name-Last: Garin-Munoz 
Author-Name: Teodosio Perez-Amaral 
Author-X-Name-First: Teodosio 
Author-X-Name-Last: Perez-Amaral 
Title: A model of Spain-Europe telecommunications 
Abstract:
  In this study we present a model for the outgoing telephone traffic from
 Spain to a group of 24 European countries. We use a point-to-point model
 that incorporates the specific characteristics of the international long
 distance service and the socioeconomic relationships between Spain and
 this group of countries, taking into account the simultaneity between
 incoming and outgoing traffic. Recently available data on minutes of
 conversation in each direction allow us to use panel data for the period
 1981-91. We use an orthogonal deviations estimator with instrumental
 variables. The orthogonal deviations transformation allows the specific
 unobservable characteristics of each route of traffic to be controlled and
 the instrumental variables take care of the simultaneity between incoming
 and outgoing traffic. We estimate a total elasticity of the minutes of
 outgoing traffic per line with respect to its own real price of - 0.81.
 Other significant variables are: the volume of trade, the number of
 visitors from each country, the number of foreign residents and the
 minutes of incoming traffic. This last variable measures the so-called
 reciprocal calling effect which is highly significant with a positive
 elasticity of 0.78. 
Journal: Applied Economics 
Pages: 989-997 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323706 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323706 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:989-997




Template-Type: ReDIF-Article 1.0
Author-Name: Channing Arndt 
Author-X-Name-First: Channing 
Author-X-Name-Last: Arndt 
Author-Name: Songquan Liu 
Author-X-Name-First: Songquan 
Author-X-Name-Last: Liu 
Author-Name: Paul Preckel 
Author-X-Name-First: Paul 
Author-X-Name-Last: Preckel 
Title: On dual approaches to demand systems estimation in the presence of binding quantity constraints 
Abstract:
  Binding quantity constraints, especially non-negativity constraints,
 appear frequently in micro-level data sets. Two dual approaches to demand
 systems estimation in the presence of binding non-negativity constraints
 are reviewed. It is demonstrated that, in a demand systems context, the
 more commonly used approach for treating binding non-negativity
 constraints is incompatible with economic theory and thus produces
 inconsistent estimates of price response. Furthermore, Monte Carlo
 experiments indicate that bias can be substantial even if limit
 observations comprise a relatively small portion of the sample. The
 alternative, a direct maximum likelihood estimation approach, has
 desirable properties; however, analytical and computational difficulties
 severely hamper application. The numerical integration approach, employed
 here for direct maximum likelihood estimation, is presented. It is
 believed that this integration approach facilitates direct maximum
 likelihood estimation for some problems. Nevertheless, the ability to
 estimate complex demand systems remains constrained. 
Journal: Applied Economics 
Pages: 999-1008 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323715 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323715 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:999-1008




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Natke 
Author-X-Name-First: Paul 
Author-X-Name-Last: Natke 
Title: Financial repression and firm self-financing of investment: empirical evidence from Brazil 
Abstract:
  Analysis of 86 Brazilian manufacturing firms operating during a period
 marked by some degree of financial repression demonstrates that investment
 spending influences the liquid asset holdings of firms. This self-finance
 motive is weaker than the transactions motive but, in general, remains
 statistically significant across a variety of model specifications. Small
 firms are more likely than large firms to finance investment spending
 through accumulation of liquid assets. Contrary to the complementarity
 hypothesis, however, there is some evidence that firms treat liquid assets
 and capital as substitutes. Specification tests comparing the Shaw
 hypothesis with the McKinnon hypothesis weakly favour the complementarity
 model. 
Journal: Applied Economics 
Pages: 1009-1019 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323724 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323724 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:1009-1019




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Binner 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Binner 
Author-Name: A. Fielding 
Author-X-Name-First: A. 
Author-X-Name-Last: Fielding 
Author-Name: A. W. Mullineux 
Author-X-Name-First: A. W. 
Author-X-Name-Last: Mullineux 
Title: Divisia money in a composite leading indicator of inflation 
Abstract:
  The principal objective of this paper is to compare the performance of
 the Divisia M4 monetary index with the standard Simple Sum measure of
 broad money in the context of composite leading indicators of inflation in
 the United Kingdom. Inflation targeting is an important component of
 current UK monetary policy and the construction of composite leading
 indicators of inflation is a potential advance over the current practice
 of monitoring a range of indicators of inflation. The leading indicators
 proposed provide useful turning point information for inflation and
 advocate principal component analysis as a more sophisticated weighting
 mechanism for the constituent components. Indicators constructed using a
 Divisia index measure of money were found to be more closely related to
 the inflation reference cycle than indicators using their Simple Sum
 counterparts when a principal components weighting mechanism was used. 
Journal: Applied Economics 
Pages: 1021-1031 
Issue: 8 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323733 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:1021-1031




Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Aiello 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Aiello 
Title: Effects of STABEX on ACPs' economic growth: Further evidence 
Abstract:
  The paper deals with the economic growth of the open and small developing
 countries which signed the Lome Convention (henceforth ACPs). Results
 showing that earnings instability damages their economic performance can
 be used to support the EU policy of guaranteeing financial aid to those
 countries suffering reductions in export proceeds. The second section of
 the paper analysing the workings of STABEX, however, highlights certain
 weaknesses in the effectiveness of STABEX transfers when their impact on
 economic growth is considered. The general conclusion is that, if the
 current EU-ACP negotiations for Lome V are to be successful, then some
 aspects of the scheme (eligibility criteria and use of funds) will have to
 be radically changed. 
Journal: Applied Economics 
Pages: 1033-1042 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323517 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323517 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1033-1042




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Stancanelli 
Author-X-Name-First: Elena 
Author-X-Name-Last: Stancanelli 
Title: Unemployment duration and the duration of entitlement to unemployment benefits: an empirical study for Britain 
Abstract:
  The aim of this paper is to investigate the impact of the expected
 duration of unemployment benefits on the individual probability of leaving
 unemployment. The theory predicts that the probability of leaving
 unemployment will increase near the time of the expected exhaustion of
 unemployment insurance. Still a limited number of empirical studies is
 available for European countries. The data used for the analysis relate to
 Britain. The probability of leaving unemployment to take up a full-time
 job is distinguished from the probability of exiting into other states. It
 is concluded that although there is some evidence of spikes in the hazard
 rate near the time of expected benefit exhaustion, no statistically
 significant benefit exhaustion effect is found. 
Journal: Applied Economics 
Pages: 1043-1051 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323526 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323526 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1043-1051




Template-Type: ReDIF-Article 1.0
Author-Name: Asa Lofstrom 
Author-X-Name-First: Asa 
Author-X-Name-Last: Lofstrom 
Title: Can job evaluation improve women's wages? 
Abstract:
  Systematic job evaluation or comparable worth programmes are often seen
 as a method to increase the relative wages of women. This paper examines
 whether this is the case using two job evaluation studies from the
 university sector in Sweden. Two different evaluation schemes were used in
 these studies. The general result found in this analysis is that complete
 implementation of the evaluation results would lead to an increase in
 women's relative wages by between 2 and 6%. This finding is, however, not
 uniform in the sense that all women would gain and all men would lose.
 Results indicate that about two-thirds of women are 'winners' and
 one-third 'losers', while the figures for men are approximately the
 reverse. Assuming that the job evaluations give a correct measure of
 productivity, the results are also used in an analysis of wage
 discrimination and the crowding effect. The findings indicate a
 significant crowding effect, but are less conclusive with regard to
 discrimination. 
Journal: Applied Economics 
Pages: 1053-1060 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323535 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323535 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1053-1060




Template-Type: ReDIF-Article 1.0
Author-Name: Charalambos Pattichis 
Author-X-Name-First: Charalambos 
Author-X-Name-Last: Pattichis 
Title: Price and income elasticities of disaggregated import demand: results from UECMs and an application 
Abstract:
  This paper presents an empirical analysis of the demand for maize, milk
 powder, butter, and rice imports in Cyprus, using annual time series data
 covering the period 1975-1994. None of these products is produced in
 Cyprus and all the necessary quantities are imported to meet domestic
 demand. The primary objective of the paper is to derive long-run price and
 income elasticities of import demand that can be used to analyse the
 impact of various policies such as the adoption of the Common Agricultural
 Policy (CAP) when, and if, the Republic of Cyprus joins the European Union
 (EU). In so doing the paper takes on board some recent developments in
 time series econometrics. The cointegration test used (the 'bounds' test)
 is a recent test and is based on the estimation of an unrestricted
 error-correction model (UECM). Parsimonious models were derived using
 Hendry's 'general to specific' approach. The estimated elasticities were
 subsequently used to quantify some of the implications for Cyprus had the
 CAP been operational in 1994. 
Journal: Applied Economics 
Pages: 1061-1071 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323544 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323544 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1061-1071




Template-Type: ReDIF-Article 1.0
Author-Name: Ferdaus Hossain 
Author-X-Name-First: Ferdaus 
Author-X-Name-Last: Hossain 
Author-Name: Pin Chung 
Author-X-Name-First: Pin 
Author-X-Name-Last: Chung 
Title: Long-run implications of neoclassical growth models: empirical evidence from Australia, New Zealand, South Korea and Taiwan 
Abstract:
  Long-run implications of the one-factor neoclassical growth models are
 tested by using data from Australia, New Zealand, South Korea and Taiwan.
 Testable propositions about the long-run relations between log of real
 output, consumption, and investment are investigated using unit root tests
 and cointegration analysis. Also, common trends analysis is used to
 identify the sources of the permanent shocks driving the common long-run
 trend. Further, variance decomposition is used to examine the extent to
 which innovations to the common trend component are able to explain
 short-run fluctuations in the data. Empirical results provide limited
 support for the neoclassical models. In addition to productivity shocks,
 permanent innovations to investment are found to be important components
 of the long-run stochastic trend governing the dynamic behaviour of real
 output, consumption and investment. Variance decomposition results suggest
 that although innovations to common trend components are important, this
 is unable to explain a substantial fraction of short-run fluctuations in
 the data. 
Journal: Applied Economics 
Pages: 1073-1082 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323553 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323553 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1073-1082




Template-Type: ReDIF-Article 1.0
Author-Name: Zinan Liu 
Author-X-Name-First: Zinan 
Author-X-Name-Last: Liu 
Author-Name: E. L. Lynk 
Author-X-Name-First: E. L. 
Author-X-Name-Last: Lynk 
Title: Evidence on market structure of the deregulated US airline industry 
Abstract:
  Airline deregulation in the USA was a rejection of inefficient regulation
 and inspired by the perspective of both potential and actual competition
 in the industry. Using multivariate regression and efficiency frontier
 techniques, the emergent structure of unregulated airline markets is
 assessed. Our findings, based on panel data for major US airlines during
 the period 1984-1991, indicate that (1) as a result of successful efforts
 by airlines to reduce the scope for competition, aviation technology now
 exhibits increasing rather than constant returns to network size as
 predicted by cost studies prior to deregulation; (2) deregulation failed
 to produce evidence of efficiency convergence among carriers as would be
 expected under sufficiently competitive conditions. 
Journal: Applied Economics 
Pages: 1083-1092 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323562 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323562 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1083-1092




Template-Type: ReDIF-Article 1.0
Author-Name: George Vamvoukas 
Author-X-Name-First: George 
Author-X-Name-Last: Vamvoukas 
Title: The twin deficits phenomenon: evidence from Greece 
Abstract:
  This paper explores the relationship between budget and trade deficits in
 a small open economy using annual data. The purpose of the paper is to
 test empirically the validity and rationale of the Keynesian proposition
 (conventional view) and the Ricardian equivalence hypothesis. The
 econometric methodology is based on cointegration analysis,
 error-correction modelling and Granger trivariate causality. The ECM
 empirical findings suggest that budget deficit has short- and long-run
 positive and significant causal effects on trade deficit. 
Journal: Applied Economics 
Pages: 1093-1100 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323571 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323571 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1093-1100




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Meng 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Meng 
Author-Name: Douglas Smith 
Author-X-Name-First: Douglas 
Author-X-Name-Last: Smith 
Title: The impact of workers' compensation on wage premiums for job hazards 
Abstract:
  The existence of a trade-off between occupational risk and earnings is
 well known. Most studies, however, ignore how public insurance systems,
 like workers' compensation (WC) affect this trade-off. This paper
 incorporates the workers' compensation system into a hedonic earnings
 function for paid employees. The results show that workers' compensation
 lowers the wage-risk trade-off for a sample of Ontario workers. In the
 absence of workers' compensation, employees would receive a significantly
 higher risk premium for exposure to the possibility of occupational
 injuries. This implies that labour markets will provide more than the
 socially optimal degree of risk if experience rating of workers'
 compensation is incomplete. 
Journal: Applied Economics 
Pages: 1101-1108 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323580 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1101-1108




Template-Type: ReDIF-Article 1.0
Author-Name: Hannu Tanninen 
Author-X-Name-First: Hannu 
Author-X-Name-Last: Tanninen 
Title: Income inequality, government expenditures and growth 
Abstract:
  This paper investigates the relationship between income inequality and
 growth by utilizing the recently published Deininger-Squire data set. Most
 of the recent empirical growth literature suggests a negative relationship
 between inequality and growth on the basis of reduced-form growth
 equations. This is also found in the author's study. Some effort is made
 to discuss the argument behind the perceived negative relationship between
 inequality and growth. According to the fiscal policy approach a high
 level of income inequality leads to a higher demand for redistribution,
 which in turn affects growth through resource allocation out of investment
 or through incentive-distorting taxes needed to fund the redistribution.
 It is suggested that the last-mentioned relationship between government
 expenditure and growth is more likely to be non-linear; positive with
 small amounts and negative with large amounts. Such a relationship,
 however, is only found for public goods. Thus, government expenditure on
 'law and order' may, with higher amounts of expenditure, have negative
 effects on growth, therefore indirectly supporting the socio-political
 stability argument. 
Journal: Applied Economics 
Pages: 1109-1117 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323599 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323599 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1109-1117




Template-Type: ReDIF-Article 1.0
Author-Name: Clinton Greene 
Author-X-Name-First: Clinton 
Author-X-Name-Last: Greene 
Title: On the impossibility of a stable and low GDP elasticity of money demand: the arithmetic of aggregation, replication and income growth 
Abstract:
  This paper shows the aggregate income (GDP) elasticity of money demand
 depends on the elasticity at the individual level and on population
 growth. As money regressions are usually formulated using US post-WW.II
 data, a low and stable aggregate income elasticity implies a negative and
 unstable elasticity at the individual level. Likewise positing a stable
 and non-unitary individual income elasticity implies wide variation in the
 conventional GDP elasticity over time. It has been possible to ignore
 these issues in empirical work due to collinearity between regressors and
 population, even for differenced data. Measuring money and income on a per
 household basis is a simple way to avoid these problems and to distinguish
 income from mere replication effects. 
Journal: Applied Economics 
Pages: 1119-1127 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323607 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323607 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1119-1127




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Khalid 
Author-X-Name-First: Ahmed 
Author-X-Name-Last: Khalid 
Title: Modelling money demand in open economies: the case of selected Asian countries 
Abstract:
  While early work on money demand estimation focused primarily on the
 importance of domestic variables, many studies in later years have
 suggested that foreign variables also influence the domestic demand for
 money in an open economy. With the rapid financial market liberalization
 in some of the Asian economies in the last couple of decades, open economy
 factors have become very important in the determination of money demand.
 Therefore, this paper aims to ascertain the degree to which foreign
 opportunity cost variables influence money demand in the Philippines,
 Singapore and South Korea. Cointegration analysis is performed and an
 error correction model estimated using quarterly time-series data. The
 empirical results support the inclusion of foreign opportunity cost
 variables in the money demand function. 
Journal: Applied Economics 
Pages: 1129-1135 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323616 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323616 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1129-1135




Template-Type: ReDIF-Article 1.0
Author-Name: Abdur Chowdhury 
Author-X-Name-First: Abdur 
Author-X-Name-Last: Chowdhury 
Author-Name: Mark Wheeler 
Author-X-Name-First: Mark 
Author-X-Name-Last: Wheeler 
Title: The velocity of US M2 in the 1990s: some further evidence 
Abstract:
  This paper investigates the behaviour of M2 velocity in recent years with
 special emphasis on the post-1989 period. Unlike previous studies in this
 area, M2 velocity is analysed in the context of a small vector
 autoregressive (VAR) model which includes income, prices, interest rates,
 and money growth volatility. The hypothesis of a structural shift in M2
 velocity associated with the post-1989 period is rejected by the VAR
 model. This suggests that the unusual behaviour of M2 velocity since 1989
 may be traced to the variability in its determinants, rather than to a
 shift in the process generating velocity. Variance decompositions indicate
 that real income and the short-term opportunity cost of M2 are the most
 important determinants of M2 velocity. The long-term opportunity cost of
 M2 and the return on equities also have significant impacts on M2
 velocity. 
Journal: Applied Economics 
Pages: 1137-1144 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323625 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323625 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1137-1144




Template-Type: ReDIF-Article 1.0
Author-Name: Dawn Richards Elliott 
Author-X-Name-First: Dawn Richards 
Author-X-Name-Last: Elliott 
Author-Name: Rupert Rhodd 
Author-X-Name-First: Rupert 
Author-X-Name-Last: Rhodd 
Title: Explaining growth rate differences in highly indebted countries: an extension to Thirlwall and Hussain 
Abstract:
  In recent years, growth rate differences have increased and have elicited
 numerous explanations. Among the most controversial interpretations is
 that postulated by Thirlwall (1979) and later extended by Thirlwall and
 Hussain (1982), both papers arguing that growth rate differences are best
 explained by demand constraints found in the balance of payments. Although
 the inclusion of capital flows by Thirlwall and Hussain (1982) is widely
 viewed as an improvement in the original model, still we believe the model
 to be less than complete because it omitted the effect of debt servicing.
 Extending the model to include the effect of debt servicing, this paper
 improves the predictability of the original model as it brought the actual
 growth rates closer to the predicted growth rates for most of the
 countries used in the previous research. 
Journal: Applied Economics 
Pages: 1145-1148 
Issue: 9 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323634 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323634 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1145-1148




Template-Type: ReDIF-Article 1.0
Author-Name: Cees Gorter 
Author-X-Name-First: Cees 
Author-X-Name-Last: Gorter 
Author-Name: Jos Van Ommeren 
Author-X-Name-First: Jos 
Author-X-Name-Last: Van Ommeren 
Title: Sequencing, timing and filling rates of recruitment channels 
Abstract:
  This paper analyses the recruitment process by which employers adjust
 their search strategies. The focus is, in particular, on the sequence and
 timing of recruitment channels. Two search strategies are identified. One
 strategy is to advertise a vacancy, and to form a pool of candidates by
 activating subsequent recruitment channels such that candidates are added
 to the pool. An alternative strategy used by employers is to start
 searching via informal channels, consider applicants at arrival and
 continue their search along a new recruitment channel if no suitable
 candidates show up. Results suggest that when informal personal contacts
 are available to the employer, this 'switching of channel' strategy is
 preferred. Moreover, the results of this paper are consistent with the
 view that informal search methods are potentially more efficient than
 using an advertisement and forming a pool of applicants, in particular
 when vital positions in firms have to be filled. 
Journal: Applied Economics 
Pages: 1149-1160 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323373 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1149-1160




Template-Type: ReDIF-Article 1.0
Author-Name: M. Azali 
Author-X-Name-First: M. 
Author-X-Name-Last: Azali 
Author-Name: K. G. P. Matthews 
Author-X-Name-First: K. G. P. 
Author-X-Name-Last: Matthews 
Title: Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia 
Abstract:
  Using the Bernanke's contemporaneous structural VAR, this paper
 investigates the role of money and credit in the monetary transmission
 mechanism during the pre- and post-liberalization periods in Malaysia.
 During the pre-liberalization period where credit and interest rates were
 regulated, the evidence supports the dominance of bank credit shocks over
 money shocks in explaining the output variability. After the
 liberalization of financial market, however, money as well as credit
 innovations were proven to make significant contribution to the output
 fluctuation. 
Journal: Applied Economics 
Pages: 1161-1170 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323382 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323382 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1161-1170




Template-Type: ReDIF-Article 1.0
Author-Name: Veronica Cabezas 
Author-X-Name-First: Veronica 
Author-X-Name-Last: Cabezas 
Author-Name: Jason MacDonald 
Author-X-Name-First: Jason 
Author-X-Name-Last: MacDonald 
Title: Hysteresis and the earnings of immigrants in the United States labour market 
Abstract:
  The paper analyses the role of hysteresis in explaining the slow wage
 convergence between certain immigrant groups and native workers. Using the
 1990 Integrated Public Use Microdata Samples (IPUMS), the analysis reveals
 that past earnings history in the country of origin has a relatively
 smaller effect on post-migration earnings when compared to past earnings
 history in the US. In addition, the paper suggests that the earnings
 history in the country of origin is more productive in the US labour
 market for immigrants from advanced economies as compared to those from
 less-developed countries. In particular, we find that US labour market
 does not value the past earnings history of Mexican immigrants as high as
 that of other ethnic groups with similar socioeconomic characteristics
 across successive cohorts. 
Journal: Applied Economics 
Pages: 1171-1182 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323391 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323391 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1171-1182




Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Turrini 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Turrini 
Title: Liberalization, quality and welfare: removing the Italian VER on Japanese car exports 
Abstract:
  The empirical evidence that evaluates ex-post the effects of trade policy
 confirms the presumption, well known in theory, that quantitative barriers
 to trade have an impact on the average quality of exports. Yet, in
 evaluating ex-ante the effects of trade policy reform, very few studies
 take into account the role of the induced change in quality. The paper
 evaluates the effects of liberalization in the Italian car market through
 a calibrated model where the choice of the quality of exports is made
 endogenous. Simulating the removal of the VER on Japanese exports, there
 are substantial gains from liberalization when only quantity effects are
 considered. Results change dramatically if quality effects are taken into
 account: the downgrading in Japanese exports entails a strong reduction in
 consumers' gains. 
Journal: Applied Economics 
Pages: 1183-1194 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323409 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323409 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1183-1194




Template-Type: ReDIF-Article 1.0
Author-Name: Joan Muysken 
Author-X-Name-First: Joan 
Author-X-Name-Last: Muysken 
Author-Name: Tom Van Veen 
Author-X-Name-First: Tom 
Author-X-Name-Last: Van Veen 
Author-Name: Erik De Regt 
Author-X-Name-First: Erik 
Author-X-Name-Last: De Regt 
Title: Does a shift in the tax burden create employment? 
Abstract:
  According to Dalton's Law it does not matter which side of the market is
 taxed. This holds for a model of the labour market as well. Nevertheless,
 it is often maintained that shifting the wedge from employers to employees
 has favourable effects on employment. That is, a shift from employers' to
 employees' taxes decreases wages and hence unemployment. This apparent
 paradox is discussed by analysing the impact of taxes in a wage bargaining
 model - it is shown that Dalton's Law does not necessarily hold in those
 models. The findings are illustrated by empirical results concerning tax
 shifting by employers and employees for the Netherlands. It is found that
 no employers' taxes are shifted backwards, whereas about 44% of employees'
 taxes are shifted forwards. These values imply a positive effect on
 employment of a reduction of the wedge in favour of employers. 
Journal: Applied Economics 
Pages: 1195-1205 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323418 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323418 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1195-1205




Template-Type: ReDIF-Article 1.0
Author-Name: Knut Roed 
Author-X-Name-First: Knut 
Author-X-Name-Last: Roed 
Author-Name: Oddbjorn Raaum 
Author-X-Name-First: Oddbjorn 
Author-X-Name-Last: Raaum 
Author-Name: Harald Goldstein 
Author-X-Name-First: Harald 
Author-X-Name-Last: Goldstein 
Title: Does unemployment cause unemployment? Micro evidence from Norway 
Abstract:
  The way that unemployment duration affects employment prospects, is
 investigated using Norwegian micro transition data encompassing detailed
 accounts of 14 807 unemployed adults. A generalized non-proportional
 Weibull model is estimated, with two possible exits from the unemployment
 pool: a job or a labour force exit. On average the probability of
 obtaining a job is fairly constant at the individual level, while the
 probability of exiting the labour force increases significantly as
 unemployment duration is prolonged. For some particular groups of
 unemployed, there is also a marked negative duration dependence in the
 probability of obtaining a job. 
Journal: Applied Economics 
Pages: 1207-1218 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323427 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323427 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1207-1218




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Lee 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: Lee 
Title: Housing cycles and the period of production 
Abstract:
  US fixed residential investment is one of the most periodic economic time
 series. A theory of housing cycles is analysed on the basis of the period
 of housing construction. Substantial lags between planning and completion
 phases of housing construction cause housing investment to respond
 cyclically to exogenous shocks in demand and production costs. Known
 structural parameters of the housing industry provide sharp numerical
 benchmarks for the resulting dynamic system. The calibrated model with two
 construction lags describes the housing data and cycles well. 
Journal: Applied Economics 
Pages: 1219-1230 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323436 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323436 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1219-1230




Template-Type: ReDIF-Article 1.0
Author-Name: Mickael Lothgren 
Author-X-Name-First: Mickael 
Author-X-Name-Last: Lothgren 
Author-Name: Magnus Tambour 
Author-X-Name-First: Magnus 
Author-X-Name-Last: Tambour 
Title: Testing scale efficiency in DEA models: a bootstrapping approach 
Abstract:
  This paper presents a method for estimation and test of firm-specific
 scale efficiency using data envelopment analysis (DEA). The use of a
 simple bootstrap algorithm is proposed to perform firm-specific inference
 for scale efficiency. An empirical application using Swedish hospital data
 is provided. It is found that about 40% of the departments were scale
 efficient according to the original results. However, for about one-third
 of those departments the hypothesis of scale efficiency could be rejected. 
Journal: Applied Economics 
Pages: 1231-1237 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323445 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323445 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1231-1237




Template-Type: ReDIF-Article 1.0
Author-Name: Erick Elder 
Author-X-Name-First: Erick 
Author-X-Name-Last: Elder 
Title: Investment effects of departures from governmental present-value budget balance 
Abstract:
  The paper investigates whether departures from government borrowing
 constraints affect the relationship between fiscal-policy innovations and
 changes in the investment level. 'Break points', or apparent departures
 from present-value budget balance, are then identified. Next, the
 investment-deficit relationship is examined prior to and following
 identified break points in an effort to detect potential changes in
 behaviour. The investment-deficit relationship is quantified by examining
 posterior coverage bounds of impulse response functions. Britain appears
 to undergo such a break around 1973. Data from this country suggest that
 significantly more crowding out occurred following the identified breaks:
 in contrast, data from other comparison countries that do not appear to
 have experienced breaks indicate stable investment-deficit relationships. 
Journal: Applied Economics 
Pages: 1239-1247 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323454 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1239-1247




Template-Type: ReDIF-Article 1.0
Author-Name: Shujie Yao 
Author-X-Name-First: Shujie 
Author-X-Name-Last: Yao 
Title: On the decomposition of Gini coefficients by population class and income source: a spreadsheet approach and application 
Abstract:
  There are in the literature many different formulae and methodologies for
 deriving and decomposing Gini coefficients. Needless to say, different
 methodologies have their own advantages and limitations. Some Gini
 formulae are unnecessarily complicated and impractical. Some are biased
 estimators and/or not decomposable. This paper presents a simple and exact
 formula and develops a systematic procedure for decomposition by
 population class and income source in a spreadsheet without using matrix
 algebra, integration, regression and covariances. The Gini formula and
 decomposition method can be used for individual data and for evenly or
 unevenly grouped data. Many complicated concepts regarding the Gini and
 its components are given an intuitive economic interpretation. A household
 survey data set for Sichuan, China, is used to demonstrate, step by step,
 how the methodology is applied in empirical analyses. 
Journal: Applied Economics 
Pages: 1249-1264 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323463 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323463 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1249-1264




Template-Type: ReDIF-Article 1.0
Author-Name: Xiangdong Wei 
Author-X-Name-First: Xiangdong 
Author-X-Name-Last: Wei 
Title: Estimating British workers' demand for safety 
Abstract:
  This paper estimates workers' demand function for job safety using the
 British General Household Survey data. The estimation employs Rosen's
 two-stage procedure. The main difference between our study and those done
 in the past is that we estimate hedonic price equations with data sets
 from two labour markets. Our approach overcomes the usual identification
 problems associated with the application of Rosen's method. The estimation
 shows that there is a significant wage compensation for job risk in the
 UK. The willingness-to-pay for a 1/100 000 decrease of annual job fatal
 accident rate from our estimated workers' demand function is about &#xa3;6
 in 1973 prices. The estimation of a demand function for safety also
 enables the derivation of workers' willingness-to-pay for non-marginal
 change of job risk, and this can be used for cost-benefit analysis on
 projects involving such non-marginal changes. 
Journal: Applied Economics 
Pages: 1265-1271 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323472 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323472 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1265-1271




Template-Type: ReDIF-Article 1.0
Author-Name: Nandinee Kutty 
Author-X-Name-First: Nandinee 
Author-X-Name-Last: Kutty 
Title: Demand for home modifications: a household production function approach 
Abstract:
  Coping with activity limitations that occur in old age is an important
 issue in the context of increasing life expectancy and the, still,
 inevitable onset of chronic conditions in old age. Elderly households can
 be viewed as coping with activity limitations by producing functionality
 with the use of direct inputs that include home modifications. A model of
 the household production of functionality is developed within the general
 framework of household production function models of health. Hypotheses
 generated from this model are tested using a logit model for data from the
 Survey of Asset and Health Dynamics Among the Oldest Old (AHEAD). The main
 findings of the empirical analysis are that the demand for home
 modifications is fairly income-inelastic, home modifications and personal
 care are substitutes to some degree, the demand for home modifications
 increases with years of schooling, and that particular health conditions
 and the use of other assistive devices are important determinants of the
 demand for modifications. 
Journal: Applied Economics 
Pages: 1273-1281 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323481 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323481 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1273-1281




Template-Type: ReDIF-Article 1.0
Author-Name: Bagala Biswal 
Author-X-Name-First: Bagala 
Author-X-Name-Last: Biswal 
Author-Name: Urvashi Dhawan 
Author-X-Name-First: Urvashi 
Author-X-Name-Last: Dhawan 
Author-Name: Hooi-Yean Lee 
Author-X-Name-First: Hooi-Yean 
Author-X-Name-Last: Lee 
Title: Testing Wagner versus Keynes using disaggregated public expenditure data for Canada 
Abstract:
  This paper attempts to test Wagnerian versus Keynesian hypotheses by
 examining the relationship between national income and total public
 expenditure as well as its various components for Canada during the period
 1950-1995. Engle and Granger's two-step cointegration and error correction
 techniques are employed to test these two hypotheses. The results of this
 study support both the hypotheses when tested with broader aggregate
 expenditure data, i.e. total government current expenditure (CE) and total
 current expenditures on goods and services (CEGS). Although the results of
 this study do not support the existence of any long-run relationship
 between GDP and the disaggregated public expenditure variables, they do
 support the existence of short-run causation implying that national income
 may be causing or caused by a component of the total government current
 expenditure in the short run. 
Journal: Applied Economics 
Pages: 1283-1291 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323490 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323490 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1283-1291




Template-Type: ReDIF-Article 1.0
Author-Name: K. Oustapassidis 
Author-X-Name-First: K. 
Author-X-Name-Last: Oustapassidis 
Author-Name: A. Vlachvei 
Author-X-Name-First: A. 
Author-X-Name-Last: Vlachvei 
Title: Profitability and product differentiation in Greek food industries 
Abstract:
  This paper explains the increasing difference between the profit margins
 of differentiated and undifferentiated Greek food manufacturing industries
 between 1988 and 1994, using panel data. The 2SLS results for the fixed
 effects model show important differences across the high, medium and low
 differentiated industry groups. The increasing difference between the
 margins of the highly differentiated group - which includes the most
 profitable industries - and the other groups can be mainly attributed to
 the greater sensitivity of margins in differentiated industries to
 advertising and demand changes. 
Journal: Applied Economics 
Pages: 1293-1298 
Issue: 10 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323508 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323508 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1293-1298




Template-Type: ReDIF-Article 1.0
Author-Name: A. J. Abbott 
Author-X-Name-First: A. J. 
Author-X-Name-Last: Abbott 
Author-Name: K. A. Lawler 
Author-X-Name-First: K. A. 
Author-X-Name-Last: Lawler 
Author-Name: C. Armistead 
Author-X-Name-First: C. 
Author-X-Name-Last: Armistead 
Title: The UK demand for steel 
Abstract:
  The paper suggests a short-run model of the demand for steel that may be
 used for forecasting future trends. The paper commences with consideration
 of a long-run model which is estimated using cointegration analysis. An
 error correction model is then developed to depict the short-run movements
 to equilibrium. This can be used for the purpose of ex-post forecasting. 
Journal: Applied Economics 
Pages: 1299-1302 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323175 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323175 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1299-1302




Template-Type: ReDIF-Article 1.0
Author-Name: Lee-Rong Wang 
Author-X-Name-First: Lee-Rong 
Author-X-Name-Last: Wang 
Author-Name: Chung-Hua Shen 
Author-X-Name-First: Chung-Hua 
Author-X-Name-Last: Shen 
Title: Do foreign investments affect foreign exchange and stock markets - the case of Taiwan 
Abstract:
  Foreign investment (FI) has been identified with a recent spate of
 speculative attacks on certain foreign currencies, giving rise to several
 financial crises. The issue of whether or not FI has destabilization or
 demonstration effects on the stock and foreign exchange markets has
 therefore received widespread attention in developing countries. The
 destabilization effect focuses on whether FI increases or decreases the
 volatility of stock prices and foreign exchange markets. The demonstration
 effect stresses that because FI focuses more on fundamental factors than
 nonfundamental factors, the major influencing factors on stock markets may
 change after FIs are permitted to enter into a country. The experience of
 Taiwan in this regard can function as a guide for other developing
 countries. This paper finds, regarding the destabilization effect, that FI
 has a positive influence on the volatility of the exchange rate and a mild
 influence on the volatility of stock returns. These results imply that
 challenges will probably emerge during the process of liberalization, such
 as increased volatility in stock returns and in the exchange rate. Next,
 with regard to the demonstration effect, our results show that prior to
 the inflow of FI, stock returns are mainly affected by nonfundamental
 factors, such as the turnover rate. After the inflow of FI, stock returns
 are affected by both nonfundamental and fundamental elements. 
Journal: Applied Economics 
Pages: 1303-1314 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323184 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323184 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1303-1314




Template-Type: ReDIF-Article 1.0
Author-Name: Denise Young 
Author-X-Name-First: Denise 
Author-X-Name-Last: Young 
Author-Name: Honghai Deng 
Author-X-Name-First: Honghai 
Author-X-Name-Last: Deng 
Title: The effects of education in early-stage agriculture: some evidence from China 
Abstract:
  The stochastic production frontier approach is used to study the effects
 of education on agricultural efficiency for a cross-section of
 'early-stage' farms from Guanghan County, Sichuan Province, China.
 Education for farm families in rural China is multifaceted with a
 combination of formal education, intragenerational transfer of knowledge
 within the home, and agricultural extension services. Since our survey
 data span two different years with markedly different policy environments,
 we are able to examine not only which aspects of education affect
 agricultural efficiency, but also whether or not the policy environment
 matters. We find limited evidence that in a policy environment that is
 conducive to agriculture, formal education provides positive returns in
 agriculture. Furthermore, general education may provide greater returns
 than the more targeted extension services. 
Journal: Applied Economics 
Pages: 1315-1323 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323193 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323193 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1315-1323




Template-Type: ReDIF-Article 1.0
Author-Name: James Hartley 
Author-X-Name-First: James 
Author-X-Name-Last: Hartley 
Title: Real myths and a monetary fact 
Abstract:
  In their paper 'Business cycles: real facts and a monetary myth,' Kydland
 and Prescott (Federal Reserve Bank of Minneapolis Quarterly Review, 14,
 1990) present a series of statistics, generated by using the
 Hodrick-Prescott filter, which they define as the 'business cycle facts.'
 Prescott (Federal Reserve Bank of Minneapolis Quarterly Review, 10, 1986)
 argued that the facts are immune to the method of detrending; however,
 even if we use the Hodrick-Prescott filter, we can get a set of facts that
 differ in important ways from those in Kydland and Prescott (1990). In
 particular, we can generate the conventional wisdom that real wages are
 acyclical, very different relative volatilities of consumption, investment
 and output, and M1 leading the cycle. In addition, we note that the other
 important fact generated by Kydland and Prescott, the countercyclicality
 of prices, was not actually a new result. 
Journal: Applied Economics 
Pages: 1325-1329 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323201 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323201 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1325-1329




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Gabriel 
Author-X-Name-First: Paul 
Author-X-Name-Last: Gabriel 
Author-Name: Curtis Johnson 
Author-X-Name-First: Curtis 
Author-X-Name-Last: Johnson 
Author-Name: Timothy Stanton 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Stanton 
Title: Customer racial discrimination for baseball memorabilia 
Abstract:
  This paper investigates customer racial discrimination in the market for
 baseball cards. It extends previous research by measuring customer racial
 preferences at the beginning and end of players' careers. Our results
 indicate that customer biases against active Black and Hispanic baseball
 players may be mitigated by differential expectations of future
 performance. However, over time we detect statistical differences in
 rookie card prices by ethnicity, as performance expectations become less
 important at the end of a player's career. 
Journal: Applied Economics 
Pages: 1331-1335 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323210 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323210 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1331-1335




Template-Type: ReDIF-Article 1.0
Author-Name: Giota Panopoulou 
Author-X-Name-First: Giota 
Author-X-Name-Last: Panopoulou 
Author-Name: Panos Tsakloglou 
Author-X-Name-First: Panos 
Author-X-Name-Last: Tsakloglou 
Title: Fertility and economic development: theoretical considerations and cross-country evidence 
Abstract:
  The paper presents a theoretical background for the analysis of the
 relationship between fertility and a number of socioeconomic factors
 associated with the process of economic development and analyses
 empirically this relationship within a cross-country framework. Fertility
 is found to be negatively related with female education, urbanization and
 family planning and positively related with the levels of infant mortality
 and economic development, whereas no significant relationship between
 fertility and female labour force participation is established.
 Sensitivity analysis is performed and the policy implications of the
 empirical findings are briefly discussed. 
Journal: Applied Economics 
Pages: 1337-1351 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323229 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323229 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1337-1351




Template-Type: ReDIF-Article 1.0
Author-Name: Yih-Chyi Chuang 
Author-X-Name-First: Yih-Chyi 
Author-X-Name-Last: Chuang 
Title: Returns to scale, productive efficiency, and optimal firm size evidence from Taiwan's firm data 
Abstract:
  By using Taiwan's census firm data, this paper estimates and tests the
 variable returns to scale hypothesis for aggregate manufacturing and
 two-digit industries. An efficiency measure is constructed to further
 examine the size-efficiency relations among two-digit industries. Analysis
 indicates that increasing returns exist at the aggregate manufacturing
 level and its magnitude is higher for exporting firms than for
 non-exporting firms. Moreover, trade is beneficial only for small firms.
 However, the property of increasing returns diminishes for most of the
 industries at the two-digit level, particularly for the exporting firms.
 This sharp comparison between aggregate and two-digit level results
 suggests that trade is conducive to productivity, and provides an
 indication of the specific form of technology spillovers among firms and
 across industries. Further investigation of the relationship between
 productive efficiency and firm size renders the result that optimal firm
 size is small for exporting firms in most industries, particularly in the
 most export-oriented ones. The technology spillover effect among firms and
 across industries is likely the reason for being small and efficient. Our
 results also indicate that an industry-wide spillover effect across firms
 within the same industry is roughly one-sixth of the firm-specific
 export-induced learning effect. Findings in this study provide valuable
 insight into Taiwan's economic development and also provide a development
 strategy for developing countries to follow. 
Journal: Applied Economics 
Pages: 1353-1364 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323238 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323238 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1353-1364




Template-Type: ReDIF-Article 1.0
Author-Name: Wayne Talley 
Author-X-Name-First: Wayne 
Author-X-Name-Last: Talley 
Title: The safety of sea transport: determinants of crew injuries 
Abstract:
  This study investigates determinants of fatal and nonfatal crew injuries
 in ship accidents, utilizing detailed data of individual tanker, container
 and bulk ship (US and foreign) accidents investigated by the US Coast
 Guard. Poisson and negative binomial regression estimates suggest that
 fatal and nonfatal injuries are greater: (1) if the accident cause is
 human rather than environmental or ship related and (2) for fire/explosion
 and multiple-ship accidents. The results provide strong evidence of a
 positive relationship between crew injuries and human causes of ship
 accidents, thereby providing support for the current shift in safety focus
 towards regulating human actions aboard ships rather than just the
 condition of ships. 
Journal: Applied Economics 
Pages: 1365-1372 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323247 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323247 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1365-1372




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Leblanc 
Author-X-Name-First: Michael 
Author-X-Name-Last: Leblanc 
Author-Name: James Hrubovcak 
Author-X-Name-First: James 
Author-X-Name-Last: Hrubovcak 
Author-Name: Ron Durst 
Author-X-Name-First: Ron 
Author-X-Name-Last: Durst 
Title: Changing fiscal federalism in the United States: effects on agriculture and food consumption 
Abstract:
  This study examines the effects of the changing fiscal role of the
 federal government with respect to providing financial support for
 low-income households and the taxation of returns from capital.
 Specifically, the effects of reducing transfers to low income families by
 US$10 billion and balancing the ensuing federal budget surplus by
 increasing the preferential tax treatment of capital gains for individual
 taxpayers are examined. We examine how this combined budget-neutral fiscal
 policy change affects agricultural production, economy-wide welfare and
 the consumption of food. Our results indicate reducing the distortion
 between the taxation of capital and labour increases economy-wide
 efficiency leading to increased consumption of food by all income classes.
 Although economy-wide food expenditures increase, offsetting the revenue
 shortfall from a reduced capital tax by decreasing transfers to low income
 families reduces food expenditures for the two lowest income groups by
 nearly US$1 billion. 
Journal: Applied Economics 
Pages: 1373-1382 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323256 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323256 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1373-1382




Template-Type: ReDIF-Article 1.0
Author-Name: Meher Manzur 
Author-X-Name-First: Meher 
Author-X-Name-Last: Manzur 
Author-Name: Wing-Keung Wong 
Author-X-Name-First: Wing-Keung 
Author-X-Name-Last: Wong 
Author-Name: Inn-Chau Chee 
Author-X-Name-First: Inn-Chau 
Author-X-Name-Last: Chee 
Title: Measuring international competitiveness: experience from East Asia 
Abstract:
  This paper uses a new measure of real exchange rates as an indicator of
 international competitiveness. This new measure involves defining all
 prices and exchange rates on an appropriately weighted basket of
 currencies rather than a single currency. The measure is applied to the
 data for Japan, Korea, Thailand, Malaysia and Singapore. For comparison
 purposes, we calculate real exchange rates based on purchasing power
 parity (PPP) for these countries. To check for the relative performance of
 the two measures, cointegration tests are employed. The results indicate
 that the new measure tends to be closely related with the export growth
 for the sample countries, while the PPP-based measure is not. Moreover,
 the PPP-based real exchange rates tend to understate the measures of
 competitiveness for these countries. This result has important
 implications in terms of the levels of these countries' exchange rates as
 well as the well-known Balassa hypothesis. 
Journal: Applied Economics 
Pages: 1383-1391 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323265 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323265 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1383-1391




Template-Type: ReDIF-Article 1.0
Author-Name: John Barkoulas 
Author-X-Name-First: John 
Author-X-Name-Last: Barkoulas 
Author-Name: Christopher Baum 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Baum 
Author-Name: Mustafa Caglayan 
Author-X-Name-First: Mustafa 
Author-X-Name-Last: Caglayan 
Title: Fractional monetary dynamics 
Abstract:
  We test for fractional dynamics in US monetary series, their various
 formulations and components, and velocity series. Using the spectral
 regression method, we find evidence of a fractional exponent in the
 differencing process of the monetary series (both simple-sum and Divisia
 indices), in their components (with the exception of demand deposits,
 savings deposits, overnight repurchase agreements, and term repurchase
 agreements), and the monetary base and money multipliers. No evidence of
 fractional behaviour is found in the velocity series. Granger's (Journal
 of Econometrics, 25, 1980) aggregation hypothesis is evaluated and
 implications of the presence of fractional monetary dynamics are drawn. 
Journal: Applied Economics 
Pages: 1393-1400 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323274 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323274 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1393-1400




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Vanhoudt 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Vanhoudt 
Title: Are public and private outlays for physical and knowledge capital accumulation equally productive? 
Abstract:
  This paper aims at obtaining empirically tentative answers to at least
 two questions of importance in the macroeconomic literature: (1) to what
 degree are private and public investment in physical and knowledge capital
 productive and what is their role in longer-term movements in aggregate
 productivity growth? and (2) does increasing the number of capital
 components in neoclassical growth regressions drive the share of 'broad'
 capital up to one as suggested by new growth theory? We will therefore
 rely on specifications derived from a generalized neoclassical growth
 model, which are in fact very well reconcilable with the equilibrium
 approach in the public economics literature. 
Journal: Applied Economics 
Pages: 1401-1410 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323283 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323283 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1401-1410




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Dolores Montoya Diaz 
Author-X-Name-First: Maria Dolores Montoya 
Author-X-Name-Last: Diaz 
Title: Extended stay at university: an application of multinomial logit and duration models 
Abstract:
  In Brazil, few studies have been devoted to proving the existence of and
 evaluating the internal inefficiencies of state universities. Such work,
 however, is highly important because state higher learning is free and a
 great amount of resources is involved in its maintenance. The objective of
 this study is to develop empirical models to permit an evaluation of the
 factors related to the decision to complete or abandon the course and to
 verify whether the duration of the connection to the university is also
 related to the same factors. Among the results obtained, the most
 important is that the prolonged stay at a state university favours
 students whose families could afford their schooling. 
Journal: Applied Economics 
Pages: 1411-1422 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323292 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323292 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1411-1422




Template-Type: ReDIF-Article 1.0
Author-Name: Raffaele Paci 
Author-X-Name-First: Raffaele 
Author-X-Name-Last: Paci 
Author-Name: Francesco Pigliaru 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Pigliaru 
Title: Is dualism still a source of convergence in Europe? 
Abstract:
  This paper aims at assessing whether dualism represents a significant
 source of the aggregate labour productivity convergence observed across
 the European regions in the 1980s. We use a model of the dual economy
 based on the work of Dixit (Oxford Economic Papers, 22, 229-34, 1970), and
 Mas-Colell and Razin (Oxford Economic Papers, 25, 72-79, 1973) to obtain
 hypotheses to be tested in cross-region growth regressions. We use
 aggregate and sectoral data for 109 territorial units from 1980 to 1990.
 Our cross-section results are consistent with the major predictions of the
 dual model. Ignoring dualism as a source of convergence could therefore
 lead to inaccurate interpretations of the relative roles played by each of
 the forces behind the process, and to inexact assessments of what actions
 should be taken- if any- by the European regional policy to help the
 process become more pervasive. 
Journal: Applied Economics 
Pages: 1423-1436 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323300 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323300 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1423-1436




Template-Type: ReDIF-Article 1.0
Author-Name: P. J. Sloane 
Author-X-Name-First: P. J. 
Author-X-Name-Last: Sloane 
Author-Name: H. Battu 
Author-X-Name-First: H. 
Author-X-Name-Last: Battu 
Author-Name: P. T. Seaman 
Author-X-Name-First: P. T. 
Author-X-Name-Last: Seaman 
Title: Overeducation, undereducation and the British labour market 
Abstract:
  This paper addresses the issue of overeducation and undereducation using
 for the first time a British dataset which contains explicit information
 on the level of required education to enter a job across the generality of
 occupations. Three key issues within the overeducation literature are
 addressed. First, what determines the existence of over and undereducation
 and to what extent are over and undereducation substitutes for experience,
 tenure and training? Second, to what extent are over and undereducation
 temporary or permanent phenomena? Third, what are the returns to over and
 undereducation and do certain stylized facts discovered for the US and a
 number of European countries hold for Britain? 
Journal: Applied Economics 
Pages: 1437-1453 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323319 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323319 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1437-1453




Template-Type: ReDIF-Article 1.0
Author-Name: Oral Williams 
Author-X-Name-First: Oral 
Author-X-Name-Last: Williams 
Author-Name: Wayne Sandiford 
Author-X-Name-First: Wayne 
Author-X-Name-Last: Sandiford 
Author-Name: Aldrin Phipps 
Author-X-Name-First: Aldrin 
Author-X-Name-Last: Phipps 
Title: Banana price shocks and adjustment within a unified currency area 
Abstract:
  The paper traces the impact of a shock to banana prices on key
 macroeconomic variables for the Windward Islands and the Eastern Caribbean
 Central Bank (ECCB) Monetary Union as a whole. Net foreign assets of
 Dominica are expected to show the largest decline while those for Grenada
 the least. The impact on the net foreign assets of the subregion may be
 mitigated by other foreign exchange inflows. In addition there was little
 variation in the growth in M1 with the exception of Dominica suggesting
 money-output neutrality. Government revenues were not adversely affected
 suggesting that the terms of trade shock may be viewed as being temporary
 and agents borrow to maintain existing tastes and preferences. This result
 hinged on the nexus between government revenue and the reliance on trade
 taxes on imports suggesting some ambiguity in the explanation of the
 Harberger-Laursen-Meltzer effect. 
Journal: Applied Economics 
Pages: 1455-1466 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323328 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1455-1466




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Marc Berk 
Author-X-Name-First: Jan Marc 
Author-X-Name-Last: Berk 
Title: Measuring inflation expectations: a survey data approach 
Abstract:
  Measures of expected inflation from consumer surveys are derived using a
 modification of the Carlson-Parkin probability approach, which does not
 assume unbiasedness of expectations, makes use of survey data on expected
 future as well as perceived past price developments and allows for time
 varying response thresholds. We apply this method to the normal, central-t
 and noncentral-t distributions, thereby investigating the effects of
 nonnormal peakedness and asymmetry. We find that the effects on expected
 inflation of the former are small and of the latter are substantial,
 without increasing the accuracy of the expectations, however. Expected and
 actual inflation show substantial persistence, and, for most of our
 expectations measures, are cointegrated. Furthermore, the forecast error
 is stationary, implying weak-form rationality. The co-movement of
 currently observed expected inflation measures and the unobserved
 12-months-ahead inflation rate is of interest for policy makers, for
 example in the direct inflation targeting strategy. Notwithstanding this,
 caution is warranted in using them as information variables because the
 inflation expected by consumers is no causal determinant of actual future
 inflation. 
Journal: Applied Economics 
Pages: 1467-1480 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323337 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323337 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1467-1480




Template-Type: ReDIF-Article 1.0
Author-Name: Yasushi Ohkusa 
Author-X-Name-First: Yasushi 
Author-X-Name-Last: Ohkusa 
Title: Additional evidence for the career concern hypothesis with uncertainty of the retirement period - the case of professional baseball players in Japan 
Abstract:
  This paper examines whether the Career Concern Hypothesis, which Gibbons
 and Murphy (Journal of Political Economy, 100, 1992) have presented, holds
 in the labour market of professional baseball players in Japan. The
 hypothesis emphasizes that if workers are concerned about their career, an
 optimal compensation contract has two incentives - an explicit incentive
 from compensation for current performance and an implicit incentive from
 concern about their career - and predicts that the explicit incentive
 should be strongest for workers close to retirement because the concern
 for their career is weakest for these workers. Incorporating the
 uncertainty of the retirement period, evidences are found supporting the
 Career Concern Hypothesis. 
Journal: Applied Economics 
Pages: 1481-1487 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1481-1487




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Hayo 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Hayo 
Title: Money-output Granger causality revisited: an empirical analysis of EU countries 
Abstract:
  In this paper, the evidence collected in the large literature on testing
 for Granger-causality from money to output is revisited. Using a broad
 data base of 14 EU countries plus Canada, the US and Japan, and quarterly
 data from the mid 1960s to mid 1990s, a number of hypotheses from this
 literature is evaluated. It is found that very few general conclusions can
 be sustained. For instance, in most countries it is not the case that the
 use of data in levels creates a bias in favour of finding
 Granger-causality effects of money on output compared to using
 differences. Neither does the significance of money lags decline when
 increasing the number of variables included in the model. What appears to
 be robust, though, is that allowing for asymmetries clearly increases the
 likelihood of finding significant causality effects. Based on the
 Granger-causality test results, a number of country groups are obtained
 using cluster analysis, which are characterized by a similarly behaviour
 with respect to the money-output relation. 
Journal: Applied Economics 
Pages: 1489-1501 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323355 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323355 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1489-1501




Template-Type: ReDIF-Article 1.0
Author-Name: James Payne 
Author-X-Name-First: James 
Author-X-Name-Last: Payne 
Author-Name: Bradley Ewing 
Author-X-Name-First: Bradley 
Author-X-Name-Last: Ewing 
Author-Name: Erik George 
Author-X-Name-First: Erik 
Author-X-Name-Last: George 
Title: Time series dynamics of US State unemployment rates 
Abstract:
  This paper examines the time series properties of state and national
 unemployment rates. Based upon unit root, variance ratio, and
 cointegration tests, as well as Granger-causality and error-correction
 model results, several important conclusions can be made. First,
 forecasting models that include only levels of unemployment rates may
 produce spurious regression results. Second, in the vast majority of
 cases, there is no long run co-movement between the aggregate US
 unemployment rate and individual state unemployment rates. Third, models
 that are specified in first-differences generally yield reliable insights
 into state-national unemployment relationships. 
Journal: Applied Economics 
Pages: 1503-1510 
Issue: 11 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323364 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323364 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1503-1510




Template-Type: ReDIF-Article 1.0
Author-Name: Suk-Joong Kim 
Author-X-Name-First: Suk-Joong 
Author-X-Name-Last: Kim 
Title: Do macro-economic news announcements affect the volatility of foreign exchange rates? Some evidence from Australia 
Abstract:
  This paper investigates the role of Australian macro-economic
 announcement news on five major Australian dollar (AUD) exchange rates.
 Specifically, the daily changes of the exchange rates are modelled to
 ascertain the existence and the nature of the news effects in the
 conditional mean and variance of the changes. It is found that a higher
 than expected current account deficit and unemployment rate announcements
 depreciated the AUD, and an unexpectedly higher GDP growth announcement
 appreciated it. Current account deficit, CPI and unemployment news
 announcements significantly raised the conditional volatility of the
 changes of the AUD on the days of their announcements, except for the
 BP/AUD for the CPI news, and there is some evidence of retail sales news
 reducing it. In general, the evidence is consistent with a view that a
 release of new information creates uncertainty in the markets due to a
 lack of consensus on the effects of the particular news announcement and
 the necessary course of action. In addition, the EGARCH(1,1)-in-Mean
 modelling of the daily changes of the exchange rates is found to be very
 successful in addressing the observed statistical properties of the daily
 changes: leptokurtosis, time-varying heteroscedasticity and asymmetric
 response of the conditional volatility to unexpected changes. 
Journal: Applied Economics 
Pages: 1511-1521 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323030 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1511-1521




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Cameron 
Author-X-Name-First: Samuel 
Author-X-Name-Last: Cameron 
Author-Name: Alan Collins 
Author-X-Name-First: Alan 
Author-X-Name-Last: Collins 
Author-Name: Neill Thew 
Author-X-Name-First: Neill 
Author-X-Name-Last: Thew 
Title: Prostitution services: an exploratory empirical analysis 
Abstract:
  This study provides an empirical analysis of the market for some male
 prostitution services in the UK. Flexible working hours, part-time
 working, and multiple job holding are considered as important labour
 market characteristics in this service sector. Statistical models helping
 explain the provision of a deviant and a more mainstream sexual service is
 reported, utilizing cross-section data drawn from individual prostitute
 advertisements. The significance of various declared intrinsic endowments
 of the prostitutes are examined in relation to the offer of these
 services, including age, ethnicity, physique, and masculine demeanour. 
Journal: Applied Economics 
Pages: 1523-1529 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323049 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323049 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1523-1529




Template-Type: ReDIF-Article 1.0
Author-Name: Peijie Wang 
Author-X-Name-First: Peijie 
Author-X-Name-Last: Wang 
Author-Name: Ping Wang 
Author-X-Name-First: Ping 
Author-X-Name-Last: Wang 
Author-Name: Neville Topham 
Author-X-Name-First: Neville 
Author-X-Name-Last: Topham 
Title: Relative price variability and inflation uncertainty - the UK case 
Abstract:
  This study applies the time-varying volatility model to UK GDP deflators
 and compares it with the traditional inflation uncertainty measurement of
 relative price variability. The link between relative price variability
 and time-varying volatility is studied and established. Moreover,
 inflation uncertainty is found to be highly persistent in duration and
 plausibly asymmetric to previous shocks at both disaggregate and aggregate
 levels. 
Journal: Applied Economics 
Pages: 1531-1539 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323058 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323058 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1531-1539




Template-Type: ReDIF-Article 1.0
Author-Name: Beverly Tepper 
Author-X-Name-First: Beverly 
Author-X-Name-Last: Tepper 
Author-Name: Lee Rosenzweig 
Author-X-Name-First: Lee 
Author-X-Name-Last: Rosenzweig 
Title: Assessing the importance of health and nutrition related factors on food demand: a variable preference investigation 
Abstract:
  The importance of health/nutrition related factors and demographics on
 food consumption is assessed based on consumer demand using a variable
 preferences approach. Results of the models show that diet-disease,
 individual's race, region of residence, urbanization, education, and
 perceived importance of taste influence the consumption of various food
 groups. Economic and policy implications of the results are discussed in
 the paper. 
Journal: Applied Economics 
Pages: 1541-1549 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323067 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323067 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1541-1549




Template-Type: ReDIF-Article 1.0
Author-Name: Jo-Hui Chen 
Author-X-Name-First: Jo-Hui 
Author-X-Name-Last: Chen 
Author-Name: Martin Williams 
Author-X-Name-First: Martin 
Author-X-Name-Last: Williams 
Title: The determinants of business failures in the US low-technology and high-technology industries 
Abstract:
  This study investigates the determinants of business failure rates for
 low-technology and high-technology manufacturing industries across the
 forty-eight contiguous US states over the period 1984 to 1993. The main
 focus is on examining the role that some key state fiscal measures and
 federal transfer grants to states play in explaining business failure
 rates. It is found that regional variations in sales taxes, highway
 expenditures, bank loans, university R&D, patents, and outstanding debt
 play a statistically significant role in explaining variations in regional
 business failure rates. Interestingly, it is found that corporate
 development assistance programmes and small business loans tend to improve
 small business survival rates for hightechnology industries but they do
 not for low-technology industries. Findings also suggest that policymakers
 can effectively use local/regional policy instruments to bring the current
 business failure rates to the desired level more easily within
 hightechnology industry groups than within low-technology industry groups. 
Journal: Applied Economics 
Pages: 1551-1563 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323076 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1551-1563




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Tsoukis 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Tsoukis 
Author-Name: Ahmed Alyousha 
Author-X-Name-First: Ahmed 
Author-X-Name-Last: Alyousha 
Title: Implications of intertemporal optimization for house and land prices 
Abstract:
  The Euler equation is used for the intertemporal allocation of durable
 goods in conjunction with a simple model of housing flow supply to derive
 implications for the relation between house and land prices. Data from
 England and Wales fails a key time series test in this respect. The
 rejection of the theory is shown to be mainly due to the specification of
 the housebuilding industry: perfect competition makes house prices
 cointegrated with land prices and housebuilding costs. There is also
 evidence that borrowing constraints impair the validity of the
 representative-agent framework for the housing sector. 
Journal: Applied Economics 
Pages: 1565-1571 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323085 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323085 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1565-1571




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Harris 
Author-X-Name-First: Richard 
Author-X-Name-Last: Harris 
Author-Name: Mary Trainor 
Author-X-Name-First: Mary 
Author-X-Name-Last: Trainor 
Title: Manufacturing industries in Northern Ireland and Great Britain: was there convergence during the 1949-92 period? 
Abstract:
  This paper uses detailed industry-level data for the UK regions which,
 based on the standard cross-sectional regression model, suggests that
 'strong' convergence was occurring during the period 1963-92, even though
 plotting these data and considering their variation over time would tend
 to suggest divergence rather than convergence has dominated. However,
 since there are several, rather fundamental drawbacks associated with the
 cross-sectional approach, a long time-series of data for Northern Ireland
 and Great Britain is used to test for convergence directly, based on
 testing for unit roots. The outcome is that more than half of the Northern
 Ireland industries considered experienced 'catch-up', while the rest (with
 the exception of the Textiles sector) experienced long-run convergence,
 i.e. they tracked their counterparts in Great Britain over the period
 considered. 
Journal: Applied Economics 
Pages: 1573-1580 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323094 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323094 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1573-1580




Template-Type: ReDIF-Article 1.0
Author-Name: Donald Lien 
Author-X-Name-First: Donald 
Author-X-Name-Last: Lien 
Author-Name: Yan Peng 
Author-X-Name-First: Yan 
Author-X-Name-Last: Peng 
Title: Measuring the efficiency of search engines: an application of data envelopment analysis 
Abstract:
  This paper adopted the data envelopment analysis (DEA) method to
 investigate the efficiency of several search engines. A query search on a
 search engine is modelled as a production process. The input and output
 vectors are defined and measured accordingly. We studied seven engines,
 Alta Vista, Excite, Hotbot, Lycos, Infoseek, Open Text, and WebCrawler and
 found that Alta Vista, Excite, Infoseek, and WebCrawler are efficient but
 the other three are not. Possible efficiency improvements are calculated. 
Journal: Applied Economics 
Pages: 1581-1587 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323102 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323102 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1581-1587




Template-Type: ReDIF-Article 1.0
Author-Name: Theocharoula Magoula 
Author-X-Name-First: Theocharoula 
Author-X-Name-Last: Magoula 
Author-Name: George Psacharopoulos 
Author-X-Name-First: George 
Author-X-Name-Last: Psacharopoulos 
Title: Schooling and monetary rewards in Greece: an over-education false alarm? 
Abstract:
  The paper uses data from the 1993-94 household survey to investigate a
 number of issues stemming from the current educational policy debate in
 Greece. Private and social returns to investment in education are
 estimated and a test of the screening hypothesis is conducted. No evidence
 was found that higher education is being used as a screening device, and
 the returns to investment in education have been maintained to just below
 their level in the 1960s. The central finding of the paper is that the
 fear of further expansion of the university system is highly exaggerated,
 and that the economy could absorb even larger amounts of highly educated
 manpower. Of course, such expansion could not take place unless there is
 an end of the state monopoly on the financing and provision of tertiary
 education. 
Journal: Applied Economics 
Pages: 1589-1597 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323111 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323111 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1589-1597




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Melkersson 
Author-X-Name-First: Maria 
Author-X-Name-Last: Melkersson 
Title: Explaining choice set size for unemployed 
Abstract:
  From questionnaire data it is evident that the number of alternatives
 unemployed workers consider, i.e. their choice set size, varies
 substantially. A binomial model is formulated for choice set size, where
 individual characteristics are used as explanatory variables for observed
 large variation in choice set size. A score-test for overdispersion is
 derived. According to an overall test, the model cannot be rejected and
 interesting determinants of choice set size variation are found. 
Journal: Applied Economics 
Pages: 1599-1607 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323120 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323120 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1599-1607




Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Saget 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Saget 
Title: Decomposing two values of a binary variable: application to the unemployment differential in Hungary 
Abstract:
  This paper presents a study of the individual determinants of
 unemployment in Hungary. It seeks to understand the reasons why Hungarian
 women were, in 1992, less likely to be unemployed than their male
 counterparts. It estimates first, the probability of being in the stock of
 unemployment and secondly, one particular inflow into unemployment.
 Adapting standard discrimination analysis to the case of binary variables,
 the paper decomposes the differential in average unemployment rates by
 gender. The paper shows that differences in individual endowments account
 for very little of the gender gap in the stock of unemployment. On the
 other hand, slightly less than half the unemployment gap could come from
 differences in one digit occupations and sectors of employment between
 male and female employees. 
Journal: Applied Economics 
Pages: 1609-1621 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323139 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323139 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1609-1621




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Caskie 
Author-X-Name-First: Paul 
Author-X-Name-Last: Caskie 
Author-Name: John Davis 
Author-X-Name-First: John 
Author-X-Name-Last: Davis 
Author-Name: Joan Moss 
Author-X-Name-First: Joan 
Author-X-Name-Last: Moss 
Title: The economic impact of BSE: a regional perspective 
Abstract:
  A regional input-output model, detailing agriculture and its ancillary
 sectors, is used to quantify the effects of a BSE-induced reduction in
 final demand for beef on the economy of Northern Ireland, a region with
 heavy dependence on beef exports. The long-run regional output, income and
 employment effects are estimated assuming no market stabilization measures
 and taking account of substitution effects in final demand. Predicted net
 losses in regional income are 0.5% of regional GDP with job losses of up
 to 0.6% of regional employment. About 77% of the income losses and 87% of
 the job losses are in the beef sector, primarily beef production.
 Compensating gains due to demand substitution effects occur mainly in meat
 processing sectors, other than beef, and are relatively small. Adverse
 intra-regional distributional effects are likely due to the concentration
 of beef production in the more disadvantaged areas. The importance of
 appropriate policy responses is highlighted. 
Journal: Applied Economics 
Pages: 1623-1630 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323148 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323148 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1623-1630




Template-Type: ReDIF-Article 1.0
Author-Name: Patrice Bertail 
Author-X-Name-First: Patrice 
Author-X-Name-Last: Bertail 
Author-Name: France Caillavet 
Author-X-Name-First: France 
Author-X-Name-Last: Caillavet 
Author-Name: Veronique Nichele 
Author-X-Name-First: Veronique 
Author-X-Name-Last: Nichele 
Title: A bootstrapped double hurdle analysis: consumption of home-produced food 
Abstract:
  This article deals with home-made food. The consumption of such specific
 goods involves an important null consumption issue. A two-step procedure
 is used to estimate whether the decision to consume is distinct from the
 decision on the amount of consumption. Data from the '1991 French Food
 Consumption Survey' show the relevance of double hurdle models. Finally,
 the estimation of Cragg's model is improved with a new undersampling
 procedure. Numerous and sometimes opposite effects of household
 characteristics on the probability of consuming home-produced food and on
 the amount consumed are obtained. 
Journal: Applied Economics 
Pages: 1631-1639 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323157 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323157 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1631-1639




Template-Type: ReDIF-Article 1.0
Author-Name: Merih Uctum 
Author-X-Name-First: Merih 
Author-X-Name-Last: Uctum 
Author-Name: Sandra Viana 
Author-X-Name-First: Sandra 
Author-X-Name-Last: Viana 
Title: Decline in the US profit rate: a sectoral analysis 
Abstract:
  The profit rate is a key element in the cyclical growth of economies
 because of its effect on investment and saving behaviour and, therefore,
 on capacity, productivity and competitiveness. The US industry profit
 rates have declined dramatically since the 1950s. This decline is analysed
 and the factors that explain it are determined. It is found that sectoral
 factor productivities and real factor prices account for most of this
 decline. The real wage has a stronger effect on manufacturing profit
 rates, while the real capital price explains better profitability in
 nonmanufacturing industries. A rise in both factor prices reduces the
 profit rates during the 1960s and the 1970s. After 1980, a fall in the
 real price of capital with a sustained improvement in technology account
 for the stabilization of the declining trends in sectoral profit rates.
 Breaking with the trends in other industries, technology accounts for most
 of the decline in the finance, insurance and real estate sector throughout
 the sample. 
Journal: Applied Economics 
Pages: 1641-1652 
Issue: 12 
Volume: 31 
Year: 1999 
X-DOI: 10.1080/000368499323166 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323166 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1641-1652




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Richaud 
Author-X-Name-First: Christine 
Author-X-Name-Last: Richaud 
Author-Name: Aristomene Varoudakis 
Author-X-Name-First: Aristomene 
Author-X-Name-Last: Varoudakis 
Author-Name: Marie-Ange Veganzones 
Author-X-Name-First: Marie-Ange 
Author-X-Name-Last: Veganzones 
Title: Real exchange rate and openness in emerging economies: Argentina in the long run 
Abstract:
  Argentina's economic policies since the beginning of the century, provide
 an interesting background to the study of real exchange rate (RER)
 management in emerging countries. In this article, four types of RER
 overvaluation are identified. In the 1920s, Argentina provides a short
 example of overvaluation in the context of a fixed exchange rate policy.
 Moreover, estimations show that import substitution regimes can lead to a
 misalignment of RER. Argentina illustrates also the difficult management
 of RER in a volatile environment. Results allow, in addition, a better
 understanding of the failure of the trade liberalization attempts of the
 country and reminds one that successfully integrating the world economy
 requires an appropriate RER policy. 
Journal: Applied Economics 
Pages: 1-11 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322930 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322930 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:1-11




Template-Type: ReDIF-Article 1.0
Author-Name: Ky-Hyang Yuhn 
Author-X-Name-First: Ky-Hyang 
Author-X-Name-Last: Yuhn 
Author-Name: Jene Kwon 
Author-X-Name-First: Jene 
Author-X-Name-Last: Kwon 
Title: Economic growth and productivity: A case study of South Korea 
Abstract:
  The economic performance that South Korea has achieved over the past
 quarter century is often likened to a 'miracle'. Recently, much interest
 has been expressed in the driving forces behind the Korean economic
 transformation. Using the valueadded measure of output, Christiansen and
 Cummings have shown that technology measured by TFP accounts for about 43%
 of Korean economic growth between 1960 and 1973. This figure is
 considerably high compared with recent major studies on Japanese and
 Singaporean economic growth. We found that the value-added framework is
 not appropriate for the description of the structure of the Korean economy
 and re-examined the sources of Korean economic growth, using the
 gross-output framework. Surprisingly, it has been discovered that only 7%
 of real output growth in the manufacturing sector during the 1962-1981
 period is attributable to technological progress. These findings parallel
 those for the Japanese and Singapore economies. 
Journal: Applied Economics 
Pages: 13-23 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322949 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322949 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:13-23




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Leong 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Leong 
Author-Name: Michael McAleer 
Author-X-Name-First: Michael 
Author-X-Name-Last: McAleer 
Title: Testing long-run neutrality using intra-year data 
Abstract:
  Previous tests of the long-run neutrality hypothesis have generally
 relied on annual time series data. This paper analyses the long-run
 neutrality of money in Australia using different sources of intra-year
 data, which permits an examination of the effects of seasonality and the
 robustness of previous empirical results. A reduced form ARIMA model is
 used with both quarterly seasonally unadjusted and adjusted Australian
 real GDP and nominal money supply to test the neutrality hypothesis. Using
 two measures of money stock, namely M1 and M3, it is shown that the
 hypothesis is supported using M1 as the measure of money supply, while it
 is rejected using M3. Recent trends and developments in the money and
 credit markets in Australia provide a possible explanation of the
 sensitivity of the outcome to the measure of money stock employed in the
 analysis. 
Journal: Applied Economics 
Pages: 25-37 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322958 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322958 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:25-37




Template-Type: ReDIF-Article 1.0
Author-Name: Hoe-Kyung Lee 
Author-X-Name-First: Hoe-Kyung 
Author-X-Name-Last: Lee 
Author-Name: Moon-Kee Kong 
Author-X-Name-First: Moon-Kee 
Author-X-Name-Last: Kong 
Title: Consumption of durable goods and tests of the permanent income hypothesis: evidence from Korean macro data 
Abstract:
  Quarterly aggregate data from Korean urban households is used to test the
 restrictions on the vector autoregressive (VAR) representation of the
 permanent income hypothesis (PIH). In testing these restrictions, an
 alternative consumption measure is proposed which takes account of the
 flow of services from durable goods. For comparison, two commonly used
 measures - total consumption expenditures and expenditures on non-durables
 and services - are also employed in the empirical analysis, and the
 results show that the choice of consumption measures could have a
 significant effect on the results of the tests, leading to a false
 conclusion with the improper consumption variables. 
Journal: Applied Economics 
Pages: 39-44 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322967 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322967 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:39-44




Template-Type: ReDIF-Article 1.0
Author-Name: Iain Fraser 
Author-X-Name-First: Iain 
Author-X-Name-Last: Fraser 
Title: An application of maximum entropy estimation: the demand for meat in the United Kingdom 
Abstract:
  In many econometric studies of demand relationships the design matrix is
 frequently subject to severe collinearity. In this paper the Generalized
 Maximum Entropy methodology is introduced and used to estimate a set of
 demand relationships. The ability of Generalized Maximum Entropy to
 estimate economic relationships that are typically subject to a high
 degree of collinearity among the explanatory variables, thus potentially
 causing traditional methods of estimation to be unreliable, is explained.
 The results derived by this alternative method of estimation, for a UK
 meat demand data set, are analysed and examined. The potential for this
 emerging estimation methodology is discussed. 
Journal: Applied Economics 
Pages: 45-59 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322976 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322976 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:45-59




Template-Type: ReDIF-Article 1.0
Author-Name: Adriaan Kalwij 
Author-X-Name-First: Adriaan 
Author-X-Name-Last: Kalwij 
Title: Estimating the economic return to schooling on the basis of panel data 
Abstract:
  This paper is concerned with estimating the economic return to schooling
 of men in the Netherlands. An IV approach is adopted to estimate a panel
 data model with random individual effects. The fact that older individuals
 have relatively less schooling than younger individuals is exploited to
 construct instruments, and GNP per worker at the time an individual turned
 16 is included to control for birth-cohort effects. The estimated return
 to schooling is about 15%. Ignoring the endogeneity of schooling results
 in a lower return to schooling. Ignoring birth-cohort effects results in a
 lower return to work experience. 
Journal: Applied Economics 
Pages: 61-71 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322985 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322985 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:61-71




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Kempa 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Kempa 
Title: Excess volatility of real exchange rates in the EMS: some evidence from structural VARs 
Abstract:
  This paper argues that the effectiveness of the exchange rate mechanism
 (ERM) of the European Monetary System (EMS) should be gauged by its impact
 on the monetary component of real exchange rate variability. Nominal and
 real shocks are separated using a bivariate structural VAR applied to real
 exchange rate data of the six original member countries participating in
 the ERM and a control group consisting of Britain and the United States.
 The findings suggest that monetary shocks have been an important source of
 real exchange rate variability and that the ERM has been successful in
 reducing the incidence of monetary shocks across its member countries
 prior to the EMS currency crises of 1992-93, while being less successful
 thereafter. 
Journal: Applied Economics 
Pages: 73-79 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322994 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322994 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:73-79




Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon 
Author-X-Name-First: Franklin 
Author-X-Name-Last: Mixon 
Title: The control of politicians within a constitutional framework: the case of state-level recall provisions 
Abstract:
  As previously recognized, the structure of representative democracy is
 endogenous and the choice of constitutional provisions selected by such
 organizations is important. The present paper focuses on constitutional
 choices that work to control the behaviour of elected officials by
 examining the constitutional ease of recalling elected officials across
 the 50 states. After developing a numerical measure of the 'ease' with
 which registered voters can recall officials, ordinary logistic, ordered
 logistic and tobit models are employed to examine the factors of such an
 endogenous choice across states. The results are quite consistent with the
 theoretical models developed previously by public choice and
 constitutional scholars. 
Journal: Applied Economics 
Pages: 81-89 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400323001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400323001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:81-89




Template-Type: ReDIF-Article 1.0
Author-Name: Aklilu Zegeye 
Author-X-Name-First: Aklilu 
Author-X-Name-Last: Zegeye 
Author-Name: Larry Rosenblum 
Author-X-Name-First: Larry 
Author-X-Name-Last: Rosenblum 
Title: Measuring productivity in an imperfect world 
Abstract:
  Most measures of multifactor productivity (MFP) assume constant returns
 to scale and perfect competition. Using a general aggregate production
 function together with duality theory and allowing for the possibilities
 of disequilibrium, markups and economies of scale, the study derives a
 more generalized MFP measure. The model was used to assess the economic
 performance in US manufacturing for the 1949 to 1988 period. The results
 suggest that scale and markups have substantial power in explaining MFP
 growth for all periods and that half of the measured MFP growth (as
 measured within the conventional framework) comes from biases due to scale
 economies, market power, and interaction effects. 
Journal: Applied Economics 
Pages: 91-104 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400323010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400323010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:91-104




Template-Type: ReDIF-Article 1.0
Author-Name: Edgar Morgenroth 
Author-X-Name-First: Edgar 
Author-X-Name-Last: Morgenroth 
Title: Exchange rates and trade: the case of Irish exports to Britain 
Abstract:
  This paper examines the effect of changes in the Punt/Sterling exchange
 rate on exports from Ireland to Britain. The approach used here differs
 significantly from that used in most other studies in that the long-run
 neutrality of the Punt/Sterling exchange rate with regard to exports from
 Ireland to Britain is tested using a recently developed technique. There
 is strong evidence that the exchange rate is neutral in the long run. 
Journal: Applied Economics 
Pages: 107-110 
Issue: 1 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400323029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400323029 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:107-110




Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Fan Chung 
Author-X-Name-First: Ching-Fan 
Author-X-Name-Last: Chung 
Author-Name: Mao-Wei Hung 
Author-X-Name-First: Mao-Wei 
Author-X-Name-Last: Hung 
Title: A general model for short-term interest rates 
Abstract:
  A general one-factor model for short-term interest rates is proposed.
 Besides the long memory fractionally integrated mean process, the model
 also consists of a power function of the interest rate as well as the
 GARCH effect in the conditional variance. The estimation results show
 that, while there is no evidence for fractional integration in the mean
 beyond the well-known martingale property, both the power function of the
 interest rate and the GARCH effect (but not the ARCH effect) are highly
 significant in the formation of the conditional variance. Test results
 also confirm a structure change in October 1979 due to the shift in the
 Federal Reserve monetary policy. 
Journal: Applied Economics 
Pages: 111-121 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322813 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:111-121




Template-Type: ReDIF-Article 1.0
Author-Name: Costas Milas 
Author-X-Name-First: Costas 
Author-X-Name-Last: Milas 
Title: Employment, output and political business cycle effects in the Greek non-tradable sector 
Abstract:
  Starting from a theoretical model with traded and non-traded goods, a
 long-run labour demand equation is identifed, with employment being
 proportional to relative output and prices. Using Greek data, the model
 supports weak exogeneity of relative prices and fiscal expansion with
 respect to the long-run parameters in the cointegrating space. It also
 highlights structural rigidities in the functioning of the Greek labour
 market. Political business cycle and partisan effects are shown to affect
 the short-run employment decisions. 
Journal: Applied Economics 
Pages: 123-133 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322822 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322822 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:123-133




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Ross 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Ross 
Title: Post-stabilization inflation dynamics in Slovenia 
Abstract:
  This paper investigates the inflation process in Slovenia through an
 examination of some commonly used determinants of inflation in transition
 economies. Granger causality tests and an analysis of unrestricted VAR
 models suggest a strong linkage between both growth in broader monetary
 aggregates and changes in the tolar-deutsche mark exchange rate on retail
 price inflation. While the growth in wages affects inflation, it appears
 that both changes in the exchange rate and growth in monetary aggregates
 provide the initial impulse. A discussion of the present money-exchange
 rate policy framework and its influence on inflation is also provided. 
Journal: Applied Economics 
Pages: 135-149 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322831 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322831 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:135-149




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Arghyrou 
Author-X-Name-First: Michael 
Author-X-Name-Last: Arghyrou 
Title: EU participation and the external trade of Greece: an appraisal of the evidence 
Abstract:
  This paper investigates the trade effects caused by the accession of
 Greece to the EU. A large part of the analysis is in terms of trade flows
 disaggregated by the 21 categories of the Greek Tariff Schedule. These
 series are original data sets which have been constructed by the author to
 be used here for the first time. The main message is that after 1981
 events took a turn closer to the pessimistic pre-accession predictions.
 Our findings indicate that during the post-integration period the external
 trade of Greece has been reoriented towards the EU countries and Greece
 lost part of its comparative advantage in those sectors in which such an
 advantage exists. We also suggest that as far as imports are concerned, EU
 participation has caused gross trade creation for imports from the EU
 countries and gross trade diversion for imports from the Rest of the
 World. As far as exports are concerned, the results indicate that EU
 participation has caused only a modest increase in Greek exports to the EU
 market. 
Journal: Applied Economics 
Pages: 151-159 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322840 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322840 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:151-159




Template-Type: ReDIF-Article 1.0
Author-Name: Gillian McCallion 
Author-X-Name-First: Gillian 
Author-X-Name-Last: McCallion 
Author-Name: J. Colin Glass 
Author-X-Name-First: J. Colin 
Author-X-Name-Last: Glass 
Author-Name: Robert Jackson 
Author-X-Name-First: Robert 
Author-X-Name-Last: Jackson 
Author-Name: Christine Kerr 
Author-X-Name-First: Christine 
Author-X-Name-Last: Kerr 
Author-Name: Donal McKillop 
Author-X-Name-First: Donal 
Author-X-Name-Last: McKillop 
Title: Investigating productivity change and hospital size: a nonparametric frontier approach 
Abstract:
  The study obtains measures of the productive efficiency of 'larger' and
 'smaller' Northern Ireland hospitals during the 1986-92 pre-Trust period.
 The measures provide insights into how these hospitals were responding to
 the pressures for increased efficiency prior to Trust status. They also
 constitute a useful benchmark for evaluating productivity change under the
 post-1992 Trust status environment. A nonparametric frontier approach is
 used to measure productivity change and to decompose this into technical
 change (or shifts in the best practice frontier) and efficiency change (or
 change in how far a hospital is from the frontier). The latter change in
 efficiency is also decomposed into changes in scale efficiency, pure
 technical efficiency and input congestion. The findings indicate that
 smaller hospitals, starting from a less efficient base, achieved greater
 productivity gains than larger hospitals over 1986-92. For smaller
 hospitals, this was due to progressive shifts in the best practice
 frontier outweighing a substantial decline in efficiency. This decline was
 found to be due to a deterioration in scale efficiency over the period.
 The results overall support the current policy view that larger hospitals
 are more efficient than smaller hospitals in providing health care
 services. 
Journal: Applied Economics 
Pages: 161-174 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322859 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322859 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:161-174




Template-Type: ReDIF-Article 1.0
Author-Name: K. Van Montfort 
Author-X-Name-First: K. 
Author-X-Name-Last: Van Montfort 
Author-Name: Th. Doodeman 
Author-X-Name-First: Th. 
Author-X-Name-Last: Doodeman 
Author-Name: J. H. S. Lobregt 
Author-X-Name-First: J. H. S. 
Author-X-Name-Last: Lobregt 
Author-Name: W. S. Zwinkels 
Author-X-Name-First: W. S. 
Author-X-Name-Last: Zwinkels 
Title: Effects of reintegration activities on the Dutch labour market, regarding several levels of education 
Abstract:
  In the Netherlands during the early nineteen nineties social security
 administration offices and labour exchange offices decided to co-operate.
 Goal of this cooperation is to support the reintegration of unemployed
 people into the labour market and to shorten the individual spells of
 unemployment. As a result of the cooperation information is available
 about levels of education of the unemployed. This article primarely
 focuses on the effects of reintegration activities on the duration of
 unemployment for different levels of education. Results of the analysis
 are compared with the human capital theory. Also the question is discussed
 whether within the framework of the cooperation persons with a higher
 level of education have shorter spells of unemployment. Finally there is
 an analysis of the effects of activities undertaken by the unemployed
 themselves to find a job. People with a university degree have significant
 longer spells of unemployment. The reintegration activities of the social
 security administration offices shorten unemployment durations
 significantly for this group only. Activities undertaken by the unemployed
 themselves shorten the spells of unemployment for lower educated people
 (only primary education) and for persons with higher general
 secondary/secondary/intermediate vocational education as highest completed
 education. 
Journal: Applied Economics 
Pages: 175-182 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322868 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322868 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:175-182




Template-Type: ReDIF-Article 1.0
Author-Name: Roderick Hill 
Author-X-Name-First: Roderick 
Author-X-Name-Last: Hill 
Author-Name: Muhammed Kabir 
Author-X-Name-First: Muhammed 
Author-X-Name-Last: Kabir 
Title: Currency demand and the growth of the underground economy in Canada, 1991-1995 
Abstract:
  The extent to which the recent introduction of a value-added tax in
 Canada contributed to the growth of the underground economy remains
 controversial. If underground economy growth led to increased currency
 holdings and shifted the currency demand function, forecasts for the
 period after the introduction of the tax should tend to underestimate
 currency holdings. Using a cointegration-based error correction mechanism
 in vector autoregression models, currency demand is estimated using
 quarterly data for 1968-1990 and dynamic forecasts are made for 1991-1995.
 On average, currency demand is underpredicted, but by a small amount. The
 results are consistent with an increase in the underground economy of
 between 0.01 and 0.3% of GDP as a result of the new tax. If changes in
 marginal direct tax rates are considered, the underground economy may have
 grown between 0.1 and 0.7% of GDP in 1991-1995. 
Journal: Applied Economics 
Pages: 183-192 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322877 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322877 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:183-192




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Tomkins 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Tomkins 
Author-Name: J. Twomey 
Author-X-Name-First: J. 
Author-X-Name-Last: Twomey 
Title: Occupational mobility in England 
Abstract:
  This paper examines evidence on occupational movement in England using
 data from the New Earnings Panel Dataset. Although most occupations are
 characterized by a high degree of immobility, there is some evidence of an
 increase in occupational mobility between 1990 and 1994. Using a compound
 Poisson modelling approach for count data combined with a gravity model,
 the paper investigates the incentives and constraints upon aggregate
 movement between occupations over two time periods, 1985-90 and 1990-94.
 Results suggest that the responsiveness of movement into a wide range of
 occupations as a result of a rise in wages is relatively elastic for males
 and relatively inelastic for females. The paper also demonstrates that
 significant barriers to movement exist, which either prevent a response to
 market signals or inhibit the extent of that response. 
Journal: Applied Economics 
Pages: 193-209 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322886 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:193-209




Template-Type: ReDIF-Article 1.0
Author-Name: Sari Pekkala 
Author-X-Name-First: Sari 
Author-X-Name-Last: Pekkala 
Title: Aggregate economic fluctuations and regional convergence: the Finnish case 1988-95 
Abstract:
  This paper analyses the connection between aggregate economic
 fluctuations and regional productivity convergence in Finland during the
 period 1988-95. Markov chain transition matrices and mobility indices were
 used to examine the regional distribution of productivity. The results
 indicated that high intra-distribution mobility occurred during booms,
 when regional convergence potential was also at its highest. Conversely,
 recession years were characterized by much lower mobility and a more
 divergent regional pattern. These findings bear important implications in
 terms of regional policy planning, as it seems that poor regions do not
 manage to keep up with the rich ones during slumps, whereas regional
 disparities diminish naturally during boom years. 
Journal: Applied Economics 
Pages: 211-219 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322895 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:211-219




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Parker 
Author-X-Name-First: Simon 
Author-X-Name-Last: Parker 
Title: Opening a can of worms: the pitfalls of time-series regression analyses of income inequality 
Abstract:
  This paper argues that time-series regression analysis is of only very
 limited use for understanding the determinants of income inequality. The
 argument is based on a combination of results from the time series
 econometrics literature and several characteristics of inequality itself,
 principally nonstationarity of the data in most inequality regression
 models, and the weak theoretical foundations underlying the models. A
 sample of postwar US data is used to illustrate the problems involved. 
Journal: Applied Economics 
Pages: 221-230 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322903 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:221-230




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Ellis 
Author-X-Name-First: Michael 
Author-X-Name-Last: Ellis 
Author-Name: D. Eric Schansberg 
Author-X-Name-First: D. Eric 
Author-X-Name-Last: Schansberg 
Title: The determinants of tenure on the Federal Reserve Board of Governors: should I stay or should I go? 
Abstract:
  This paper examines the quit behaviour of members of the Federal Reserve
 Board of Governors. We find that the probability of a member continuing is
 lower when the member is an economist, when the member comes to the Board
 from the private sector, and when their policy views differ from the Board
 as a whole. In addition, we find evidence that the President can exert
 influence on the Fed by the power of appointment. And in contrast with
 what one might expect, we find that salaries on the Board relative to the
 private sector do not seem to be an important factor in determining the
 decision to continue service on the Board. 
Journal: Applied Economics 
Pages: 231-237 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322912 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322912 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:231-237




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Barrett 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Barrett 
Author-Name: Aliakbar Olia 
Author-X-Name-First: Aliakbar 
Author-X-Name-Last: Olia 
Author-Name: Dee Von Bailey 
Author-X-Name-First: Dee 
Author-X-Name-Last: Von Bailey 
Title: Subdiscipline-specific journal rankings: whither Applied Economics? 
Abstract:
  In light of widespread specialization of research and teaching, it seems
 appropriate to supplement the existing general rankings of economics
 journals with subdiscipline-specific rankings. That is the primary
 objective of this paper. The availability of subdiscipline-specific
 rankings also permits both (i) alternative journal ranking methods for the
 general discipline that account for the breadth of a journal's impact
 across specialized fields, and (ii) estimation of the relative weights
 implicitly associated with each field in traditional disciplinary journal
 rankings. The results are robust to the exclusion of self-citations. 
Journal: Applied Economics 
Pages: 239-252 
Issue: 2 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322921 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322921 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:239-252




Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Skoorka 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Skoorka 
Title: Measuring market distortion: international comparisons, policy and competitiveness 
Abstract:
  This paper develops a framework to simultaneously estimate production
 possibility frontiers and measure distortions in factor and product
 markets. The econometric results, based on a panel of 61 countries over
 the period 1970 through 1985, reveal very little distortion in factor
 markets but considerable distortion in product markets. In addition, the
 distortions tend to vary with the cyclical behaviour of economic activity.
 Further, the results suggest that in order to improve efficiency,
 commercial policy should aim at reducing product-market distortions rather
 than factor-market ones. 
Journal: Applied Economics 
Pages: 253-264 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322688 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322688 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:253-264




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Aguirre 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Aguirre 
Author-Name: Luis Antonio Aguirre 
Author-X-Name-First: Luis Antonio 
Author-X-Name-Last: Aguirre 
Title: Time series analysis of monthly beef cattle prices with nonlinear autoregressive models 
Abstract:
  This paper analyses the dynamics underlying a time series of the monthly
 average beef cattle price received by producers in the State of Sao Paulo
 (Brazil). The time series under study records monthly prices since 1954.
 An exploratory analysis suggested that after a period of intense
 government intervention in the cattle and beef markets, the underlying
 dynamics seem to be settling to a pattern similar to the one observed
 prior to that period. In order to try to verify if the underlying dynamics
 after the interventionist phase are similar to those in former times, a
 forecasting procedure has been used based on nonlinear autoregressive
 models. This tye of models were used after the BDS test showed significant
 results which can be interpreted as nonlinearities in the data. The
 results discussed in the paper seem to suggest that after a period of
 intense interventions that lasted over two decades, the current underlying
 dynamics are close (from a forecasting point of view) to those observed
 more than thirty years ago. 
Journal: Applied Economics 
Pages: 265-275 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:265-275




Template-Type: ReDIF-Article 1.0
Author-Name: Basil Dalamagas 
Author-X-Name-First: Basil 
Author-X-Name-Last: Dalamagas 
Title: Public sector and economic growth: the Greek experience 
Abstract:
  Over the past two decades there has been an increase in the relative size
 of the public sector, accompanied by a decline in the growth performance
 of the Greek economy. In an attempt to highlight the contribution of the
 government size to growth, an analytical framework is developed,
 incorporating the possibility that marginal factor productivities are not
 equal in the public and private sectors. Econometric analysis utilizing
 this framework points to a negative relationship between government size
 and economic growth. This seems to derive, in part, from intersectoral
 diseconomies generated by the growing share of deft-financed government
 activities. 
Journal: Applied Economics 
Pages: 277-288 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322705 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322705 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:277-288




Template-Type: ReDIF-Article 1.0
Author-Name: Hossein Jalilian 
Author-X-Name-First: Hossein 
Author-X-Name-Last: Jalilian 
Author-Name: Matthew Odedokun 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Odedokun 
Title: Equipment and non-equipment private investment: a generalized Solow model 
Abstract:
  The study is an empirical attempt to shed light on which categories of
 private fixed investment could be relied on to provide the greatest
 stimulus to economic growth. Panel data, comprising 5-year periodic data
 over the period 1965-90 pooled across 55 countries, are employed in
 estimating the model through the fixed-effect technique. In addition to
 human capital investment ratio, five categories of private fixed
 investment ratios are tested for. Findings suggest that not all types of
 investments are conducive to growth. 
Journal: Applied Economics 
Pages: 289-296 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322714 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322714 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:289-296




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cook 
Title: Frequency domain and time series properties of asymmetric error correction terms 
Abstract:
  The now familiar error correction model has recently been extended to
 allow for the modelling of asymmetric behaviour, resulting in the
 development of the asymmetric error correction model. Previous workers
 have undertaken studies upon which the 'classic', implicitly symmetric,
 error correction model was developed. It was found that the Escribo-Pfann
 method approach detected significant asymmetries while the Granger-Lee did
 not. In this paper the properties of the alternative methods are analysed
 in detail to examine why one method met with success, but not the other.
 Via the use of estimated sample spectral densities and correlograms, a
 significant property of the Granger-Lee method is uncovered. This
 property, particularly relevant in application to consumers' expenditure,
 has a wider relevance, helping explain why the approach has met with
 limited success. 
Journal: Applied Economics 
Pages: 297-304 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322723 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322723 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:297-304




Template-Type: ReDIF-Article 1.0
Author-Name: Werner Smolny 
Author-X-Name-First: Werner 
Author-X-Name-Last: Smolny 
Title: Sources of productivity growth: an empirical analysis with German sectoral data 
Abstract:
  Many theoretical analyses of the sources of economic growth focus on
 knowledge spillovers and scale economies to explain growth endogenously.
 The contribution of this paper is to shed some light on these arguments by
 an empirical investigation based on a production function framework.
 Sectoral production functions are estimated with annual German data of 51
 sectors from 1960-90. The estimates reveal that both a pure Solow growth
 model and a Solow model augmented with human capital cannot account for
 the observed productivity increases. The model should be extended by
 allowing for inter-industry spillovers and scale economies at the
 aggregate level, as well as for scale economies associated with human
 capital at the sectoral level. The business cycle affects observed
 productivity changes in the short run and in the long run. 
Journal: Applied Economics 
Pages: 305-314 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322732 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:305-314




Template-Type: ReDIF-Article 1.0
Author-Name: David Forrest 
Author-X-Name-First: David 
Author-X-Name-Last: Forrest 
Author-Name: O. David Gulley 
Author-X-Name-First: O. David 
Author-X-Name-Last: Gulley 
Author-Name: Robert Simmons 
Author-X-Name-First: Robert 
Author-X-Name-Last: Simmons 
Title: Testing for rational expectations in the UK National Lottery 
Abstract:
  The concept of rational expectations has typically been assumed, without
 testing, in the analysis of consumer demand and market efficiency in
 betting markets, including betting on lottery games. Lottery games offer
 an excellent opportunity to test how participants process the information
 that is available to them. Using the UK National Lottery as our particular
 case, we find that participants, in general, efficiently process available
 information. Specifically, they act as if they can, on average, forecast
 the level of sales for a given drawing. 
Journal: Applied Economics 
Pages: 315-326 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322741 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322741 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:315-326




Template-Type: ReDIF-Article 1.0
Author-Name: Dragan Miljkovic 
Author-X-Name-First: Dragan 
Author-X-Name-Last: Miljkovic 
Author-Name: Rodney Paul 
Author-X-Name-First: Rodney 
Author-X-Name-Last: Paul 
Author-Name: Roberto Garcia 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Garcia 
Title: Income effects on the trade balance in small open economies 
Abstract:
  The objective is to determine the causes of the countercyclicality of the
 trade balance in five small open economies, namely Austria, France, Italy,
 Spain, and Switzerland. In order to investigate the role of permanent and
 temporary changes in income in the determination of the trade balance,
 Blanchard-Quah variance decomposition procedure is applied. The results of
 analysis support the conclusion that transitory income shocks are major
 reasons for the change in the trade balance, and that negative correlation
 between the trade balance and income is primarily due to transitory
 shocks. Thus, these results are more consistent with intertemporal models
 with the dichotomous view in which the aggregate demand shocks are
 responsible for cyclical variations in the trade balance and income and
 aggregate supply is responsible for the long-run growth of the economy. 
Journal: Applied Economics 
Pages: 327-333 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322750 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322750 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:327-333




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Pagan 
Author-X-Name-First: Jose 
Author-X-Name-Last: Pagan 
Author-Name: Jose Tijerina-Guajardo 
Author-X-Name-First: Jose 
Author-X-Name-Last: Tijerina-Guajardo 
Title: Increasing wage dispersion and the changes in relative employment and wages in Mexico's urban informal sector: 1987-1993 
Abstract:
  This study analyses the role of changes in informal/formal relative
 employment, wage levels and wage inequality in explaining increasing wage
 dispersion in Mexico during the 1987-1993 period. From 1987 to 1993, the
 variance of the log of hourly wages for Mexican workers increased by more
 than 50 per cent. Using data from the Encuesta nacional de empleo urbano
 we find that this increase in the overall wage dispersion was mainly
 driven by increasing wage dispersion in the formal sector coupled with a
 faster growth in formal sector employment as a percentage of total
 employment. However, compression in the distribution of wages within the
 informal sector contributed to substantially slowdown the increasing
 overall wage inequality. About 60 per cent of the 1987-1993 4.65
 percentage point reduction in the informal sector share of total
 employment is explained by changes in the structure that determines
 sectoral employment; the rest is explained by changes in the composition
 of the labour force, particularly increases in the sectoral education gap
 and a change in the regional relative share of sectoral employment. Also,
 from 1987 to 1993 the sectoral wage ratio increased from 0.59 to 0.63. It
 seems that a relative improvement in unobserved skills in the informal
 sector helped to close the wage differential but this effect was partially
 offset by an increase in the relative prices of both observed and
 unobserved skills, as well as increases in relative observed skills in the
 formal sector, particularly education. 
Journal: Applied Economics 
Pages: 335-347 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322769 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322769 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:335-347




Template-Type: ReDIF-Article 1.0
Author-Name: Arne Nygaard 
Author-X-Name-First: Arne 
Author-X-Name-Last: Nygaard 
Author-Name: Ingunn Myrtveit 
Author-X-Name-First: Ingunn 
Author-X-Name-Last: Myrtveit 
Title: Moral hazard, competition and contract design: empirical evidence from managerial, franchised and entrepreneurial businesses in Norway 
Abstract:
  Agency theory emphasizes the role of ownership, control and incentives in
 encouraging managers to improve efficiency. Owners often tie managers to
 contracts that reduce conflict of interest between owners and managers.
 The differences between alternative business ownership structures have
 been investigated. According to theory, we expect managers with an
 outcome-dependent dealer contract to be more efficient than managers with
 a more integrated and less performance based employee dealer contract. We
 also analyse how competitive pressure might reduce the moral hazard
 problem and therefore affect contract design. Berle and Means (The Modern
 Corporation and Private Property, Macmillan, New York, 1932) long ago
 stated that the market mechanism could constrain the agency problem. Even
 so, this problem has scarcely been investigated empirically. This paper
 also considers the contractual effect of potential monitoring costs,
 education and relationship age in a model tested on data from 175 dealer
 contracts in a multinational oil company. 
Journal: Applied Economics 
Pages: 349-356 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322778 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:349-356




Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Benson 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Benson 
Author-Name: Brent Mast 
Author-X-Name-First: Brent 
Author-X-Name-Last: Mast 
Author-Name: David Rasmussen 
Author-X-Name-First: David 
Author-X-Name-Last: Rasmussen 
Title: Can police deter drunk driving? 
Abstract:
  Economic studies using aggregate data generally find that higher taxes
 are the most effective policy to reduce drunk driving while criminologists
 report strong evidence supporting law enforcement measures in policy
 evaluations. This paper evaluates these differing perspectives using the
 aggregate data that is typically used in the economic literature. OLS and
 fixed effects models show that police can affect the probability of arrest
 for drunk driving and, in combination with evidence from DUI deterrence
 experiments, this suggests that the failure of economic models to detect
 deterrence reflects the lack of systematic and sustained police efforts
 against DUI. 
Journal: Applied Economics 
Pages: 357-366 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322787 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322787 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:357-366




Template-Type: ReDIF-Article 1.0
Author-Name: Nieves Lazaro 
Author-X-Name-First: Nieves 
Author-X-Name-Last: Lazaro 
Author-Name: MaLuisa Molto 
Author-X-Name-First: MaLuisa 
Author-X-Name-Last: Molto 
Author-Name: Rosario Sanchez 
Author-X-Name-First: Rosario 
Author-X-Name-Last: Sanchez 
Title: Unemployment and consumption patterns 
Abstract:
  In this paper we obtain empirical evidence about the effect of female and
 male unemployment on household demand of a selection of goods and
 services. We analyse the percentage of the family income expenditure on a
 particular group of goods concerning education, domestic services, leisure
 goods, hotels etc. The impact of several determinants on each group of
 commodities is estimated using a Tobit specification. The data used for
 estimation have been taken from The Household Expenditure Survey
 (1990-91). Our main result is that male and female unemployment has a
 different impact on the household consumption. 
Journal: Applied Economics 
Pages: 367-379 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322796 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:367-379




Template-Type: ReDIF-Article 1.0
Author-Name: Joshy Easaw 
Author-X-Name-First: Joshy 
Author-X-Name-Last: Easaw 
Author-Name: Dean Garratt 
Author-X-Name-First: Dean 
Author-X-Name-Last: Garratt 
Title: Elections and UK government expenditure cycles in the 1980s: an empirical analysis 
Abstract:
  This paper tests whether there exists any significant difference in the
 responsiveness of UK government expenditure policy to changes in national
 income and unemployment in pre- and post-election periods. The absence of
 such a political effect would see the national income and unemployment
 elasticities for government expenditure being uniform over an election
 period. The empirical analysis deliberately covers the three UK
 Conservative governments between 1979 and 1992 when academic debate on the
 implications of discretionary policy for the economy and social welfare
 were particularly prominent and when it appeared that political rhetoric
 concurred with the academic prescriptions. 
Journal: Applied Economics 
Pages: 381-391 
Issue: 3 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322804 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:381-391




Template-Type: ReDIF-Article 1.0
Author-Name: Rubiana Chamarbagwala 
Author-X-Name-First: Rubiana 
Author-X-Name-Last: Chamarbagwala 
Author-Name: Sunder Ramaswamy 
Author-X-Name-First: Sunder 
Author-X-Name-Last: Ramaswamy 
Author-Name: Phanindra Wunnava 
Author-X-Name-First: Phanindra 
Author-X-Name-Last: Wunnava 
Title: The role of foreign capital in domestic manufacturing productivity: empirical evidence from Asian economies 
Abstract:
  The paper empirically examines the relative contribution of foreign and
 domestic machinery and equipment on manufacturing productivity in seven
 Asian economies. A Cobb-Douglas production function is used to test
 whether foreign machinery is more productive than domestic machinery. The
 study is based on a pooled cross-sectional time-series model, including
 seven countries - Hong Kong, Singapore, South Korea, Malaysia, Indonesia,
 the Philippines and India - for the years 1975 to 1990. The results
 support the hypothesis that a country's stage of development, skill-level
 of its labour force, and the technology embodied in capital play a crucial
 role in determining the relative impact of foreign and domestic capital on
 manufacturing productivity. 
Journal: Applied Economics 
Pages: 393-398 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322561 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:393-398




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis 
Author-X-Name-First: Philip 
Author-X-Name-Last: Arestis 
Author-Name: Iris Biefang-Frisancho Mariscal 
Author-X-Name-First: Iris Biefang-Frisancho 
Author-X-Name-Last: Mariscal 
Title: OECD unemployment: structural breaks and stationarity 
Abstract:
  The paper is concerned with testing the unemployment rate of twenty two
 OECD countries for stationarity. A sequential testing procedure was
 applied where the break data is endogenized. Three different models were
 tested for unit roots. It was found that the 'crash' model, which allows
 for a shift in the level of the unemployment rate, was most relevant.
 Furthermore, most breaks were associated with the first oil price shock.
 Results suggest that in nine countries the unit root can be rejected, in
 ten countries the null hypothesis cannot be rejected and in three cases
 the results suggest possible trend stationarity. 
Journal: Applied Economics 
Pages: 399-403 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322570 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:399-403




Template-Type: ReDIF-Article 1.0
Author-Name: Shigeyuki Hamori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Hamori 
Title: The transmission mechanism of business cycles among Germany, Japan, the UK and the USA 
Abstract:
  The study analyses the interdependent relationships of business cycles
 among four major countries using LA-VAR methods. The results are compared
 with results obtained using a standard VAR model. For the total sample
 (1962-1995), it is found that the economies of individual countries move
 independently and that inter-dependence is weak. However, causality from
 the USA to Japan, and from Japan to Germany can be observed. It is also
 found that the ripple effect differs in the first (1962-1973) and second
 (1973-1995) sample periods. A change in the international ripple effect on
 the business cycle may have occurred at the time of the first oil crisis.
 These results are almost robust to the empirical techniques employed in
 the analysis. 
Journal: Applied Economics 
Pages: 405-410 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322589 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322589 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:405-410




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Aghdas Mirzai 
Author-X-Name-First: Aghdas 
Author-X-Name-Last: Mirzai 
Title: Real and nominal effective exchange rates for developing countries: 1973:1-1997:3 
Abstract:
  The International Monetary Fund construct and publish real and nominal
 effective exchange rate data, mostly for developed countries. In this
 paper real and nominal effective rate data for developing countries are
 constructed. Application of the KPSS test to real effective rate data
 reveals that PPP holds in most countries. 
Journal: Applied Economics 
Pages: 411-428 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322598 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:411-428




Template-Type: ReDIF-Article 1.0
Author-Name: Duncan Watson 
Author-X-Name-First: Duncan 
Author-X-Name-Last: Watson 
Title: UK wage underpayment: implications for the minimum wage 
Abstract:
  Dynamic monopsony suggests that, due to labour market frictions, workers
 will be paid below their productivity. This paper uses the stochastic
 frontier technique to estimate the degree of this underpayment for UK
 employees. It finds evidence of significant underpayment. The estimates
 are used to examine whether the predictions of dynamic monopsony are
 empirically accurate. No conclusive evidence against this theoretical
 framework is found. The paper also investigates whether payment according
 to productivity is a sufficient condition for the elimination of the
 'working poor' problem. Due to the existence of an unemployment barrier,
 it finds that the minimum wage is not an effective anti-poverty policy. 
Journal: Applied Economics 
Pages: 429-440 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322606 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322606 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:429-440




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen 
Author-X-Name-First: Chung-Hua 
Author-X-Name-Last: Shen 
Title: Estimation of a Taiwan monetary reaction function with time varying parameters 
Abstract:
  This paper employs a nonlinear Kalman filter to examine the time-varying
 responses of Taiwan's monetary policy in the presence of a limited
 dependent variable. The Kalman filtered parameters reveal that the
 responses are not constant but change over time. Furthermore, a
 counter-cyclical reaction function is identified and a stronger than usual
 discretionary policy during the recessions is found. 
Journal: Applied Economics 
Pages: 459-466 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322624 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322624 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:459-466




Template-Type: ReDIF-Article 1.0
Author-Name: Mercedes Gumbau-Albert 
Author-X-Name-First: Mercedes 
Author-X-Name-Last: Gumbau-Albert 
Title: Efficiency and technical progress: sources of convergence in the Spanish regions 
Abstract:
  The paper analyses the contribution of efficiency as a mechanism of
 labour productivity convergence, taking as the unit of analysis the
 Spanish regions in the period 1964-1993. Using the stochastic frontier
 approach, a translogarithmic production function is estimated for the
 different sectors of the Spanish regional economy, demonstrating on this
 basis the existence of substantial differences in efficiency between
 sectors as well as between regions. With regard to convergence, the
 results obtained indicate that at aggregate level the convergence observed
 in labour productivity is explained by the faster growth of the
 capital-labour ratio of the initially poorer regions and the contribution
 of technical change and the efficiency, hence by the convergence of TFP.
 However, the information by sectors shows different results. Thus, on the
 one hand, the importance of the convergence in production per employee is
 seen in all sectors except agriculture and, on the other it is observed
 that technical change is a factor of convergence in all sectors but
 construction, and, qualitatively, the contribution of technical change is
 greater than the contribution of efficiency. By sectors, technical change
 contributed significantly to labour productivity convergence in
 agriculture, but the faster growth of the capital-labour ratio of the rich
 regions acted as a mechanism of divergence, completely counteracting the
 technological catching-up effect. It is further concluded that, as well as
 the contribution of the accumulation of factors, the positive evolution of
 efficiency in the poorest regions favoured convergence in the construction
 and industry sectors, whereas technical progress was decisive in industry
 and the services sectors. 
Journal: Applied Economics 
Pages: 467-478 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322633 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322633 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:467-478




Template-Type: ReDIF-Article 1.0
Author-Name: Afonso Ferreira 
Author-X-Name-First: Afonso 
Author-X-Name-Last: Ferreira 
Title: Convergence in Brazil: recent trends and long-run prospects 
Abstract:
  This paper applies to the analysis of the interstate income distribution
 in Brazil a set of techniques that have been widely used in the current
 empirical literature on growth and convergence. Usual measures of
 dispersion in the interstate income distribution (the coefficient of
 variation and Theil's index) suggest that sigma-convergence was an
 unequivocal feature of the regional growth experience in Brazil, between
 1970 and 1986. After 1986, the process of convergence seems, however, to
 have slowed down almost to a halt. A standard growth model is shown to fit
 the regional data well and to explain a substantial amount of the
 variation in growth rates, providing estimates of the speed of
 (conditional) beta-convergence of approximately 3% p.a. Different
 estimates of the long-run distribution implied by the recent growth trends
 point towards further reductions in the interstate income inequality, but
 also suggest that the relative per capita incomes of a significant number
 of states and the number of 'very poor' and 'poor' states were, in 1995,
 already quite close to their steady-state values. 
Journal: Applied Economics 
Pages: 479-489 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322642 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:479-489




Template-Type: ReDIF-Article 1.0
Author-Name: Nephil Matangi Maskay 
Author-X-Name-First: Nephil Matangi 
Author-X-Name-Last: Maskay 
Title: A cautionary note in using patterns of shocks to determine optimal exchange rate policy. An exploration of Nepalese and Indian exchange rate relations: 1964-1994 
Abstract:
  Nepal and India are developing countries in Asia whose (hard) peg has
 existed for almost forty years as well as no restriction on capital
 mobility between both countries. However, empirical results suggest that
 Nepal and India do not face symmetric patterns of shocks and are thus not
 suitable for a fixed exchange rate under this criteria. One possible
 explanation may be that the monetary authority plays some role in the
 short run to reduce the cost of the exchange rate regime. This suggests
 that some caution should be used in basing optimal exchange rate policy on
 this single criteria. 
Journal: Applied Economics 
Pages: 491-497 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322651 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322651 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:491-497




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Lim 
Author-X-Name-First: Christine 
Author-X-Name-Last: Lim 
Author-Name: Michael McAleer 
Author-X-Name-First: Michael 
Author-X-Name-Last: McAleer 
Title: A seasonal analysis of Asian tourist arrivals to Australia 
Abstract:
  Rapid economic growth in South-East and East Asia has seen a surge in
 tourist arrivals from this region to Australia in the 1990s, prior to the
 currency crisis in late 1997. The purpose of the paper is to use
 Autoregressive Integrated Moving Average (ARIMA) models to explain the
 nonstationary seasonally unadjusted quarterly tourist arrivals from Hong
 Kong and Singapore to Australia from 1975(1) to 1996(4). As the tourist
 arrivals series display strong seasonal patterns, deterministic and
 stochastic seasonality are examined as possible explanations for
 variations in the international tourist arrivals series. The Hylleberg et
 al. (Journal of Econometrics, 99, pp. 215-38, 1990) test for seasonal unit
 roots is used to examine stochastic seasonality in the various series. 
Journal: Applied Economics 
Pages: 499-509 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322660 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322660 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:499-509




Template-Type: ReDIF-Article 1.0
Author-Name: David Coady 
Author-X-Name-First: David 
Author-X-Name-Last: Coady 
Author-Name: Limin Wang 
Author-X-Name-First: Limin 
Author-X-Name-Last: Wang 
Title: Incentives, allocation and labour-market reforms during transition: the case of urban China, 1986-1990 
Abstract:
  Has the reform process in China resulted in the introduction of
 incentives directed at a more efficient allocation of resources? Using
 data on individual earnings in urban Liaoning province for the period
 1986-1990 and a wage-equation approach, we address this issue in the
 context of labour-market reforms, focusing specifically on returns to
 education. Our results indicate that failure to address the issue of
 endogenous selection of more 'able' individuals into state-owned
 enterprises (SOEs) can severely bias returns downwards. Unlike in SOEs,
 returns in collective-owned enterprises (COEs) increased, the latter
 having been allowed to 'grow out of the plan' more quickly and subject to
 more competition in factor and product markets. We conclude that
 decentralization without competition is unlikely to result in the
 introduction of an efficient incentive mechanism. The more
 administratively determined regular wages are one avenue for increased
 returns. We find evidence of 'differentiated bonuses' in COEs, but we
 cannot reject the hypothesis of 'bonus sharing' in SOEs. Reforms which
 face SOEs with more competitive markets (e.g. reform of in-kind benefits
 such as housing) should have substantial benefits in terms of a more
 efficient allocation of labour both within and across enterprises. 
Journal: Applied Economics 
Pages: 511-526 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322679 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:511-526




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: Demand Shift across US Industries and the Stabilizing Function of Nominal Wage and Price Flexibility. 
Abstract:
  Nominal wage and price adjustments in response to demand shocks are
 likely to determine industrial output variability. The direction of this
 relationship is complicated, however, by demand and supply factors. The
 empirical investigation across a sample of private industries in the
 United States produces the following evidence. Price flexibility moderates
 the response of the output supplied to a given shift in industrial demand.
 Similarly, nominal wage flexibility moderates, although insignificantly,
 the output response to a given shift in industrial demand. The size of
 industrial demand shifts dominates, however, supply-side constraints in
 differentiating output fluctuations across industries. While price
 flexibility moderates shifts in industrial demand in response to aggregate
 demand shocks, these shifts are larger the higher the nominal wage
 flexibility across industries. The combined supply and demand effects
 differentiate the stabilizing function of nominal wage and price
 flexibility. Nominal wage flexibility increases output fluctuations in
 response to aggregate demand shocks. In contrast, output fluctuations are
 smaller the larger the price adjustment to demand shocks across
 industries. Given the endogeneity of price flexibility, it is necessary to
 control for variation in demand variability in order to reveal the
 stabilizing effect of price flexibility on output across industries. 
Journal: Applied Economics 
Pages: 441-458 
Issue: 4 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322615 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322615 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:441-458




Template-Type: ReDIF-Article 1.0
Author-Name: Terry Robinson 
Author-X-Name-First: Terry 
Author-X-Name-Last: Robinson 
Title: Electricity pool prices: a case study in nonlinear time-series modelling 
Abstract:
  This paper considers modelling the behaviour of prices in the English and
 Welsh wholesale electricity Pool since the creation of this spot market in
 1990. The process turns out to be nonlinear and a logistic smooth
 transition autoregressive model is fitted and shown to be superior to a
 linear alternative. The behaviour of the estimated model is discussed, and
 it is seen that nonlinearity is needed to describe the institutional
 characteristics and historical path of pool prices. 
Journal: Applied Economics 
Pages: 527-532 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322435 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322435 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:527-532




Template-Type: ReDIF-Article 1.0
Author-Name: Christos Kollias 
Author-X-Name-First: Christos 
Author-X-Name-Last: Kollias 
Author-Name: Stelios Makrydakis 
Author-X-Name-First: Stelios 
Author-X-Name-Last: Makrydakis 
Title: Tax and spend or spend and tax? Empirical evidence from Greece, Spain, Portugal and Ireland 
Abstract:
  The paper examines empirically the relationship between government
 revenues and expenditures in four European countries: Greece, Spain,
 Ireland, and Portugal. In relative terms all four may be considered as the
 poorest members of the European Union. Yet, they present a fairly diverse
 picture as far as their macroeconomic performance and fiscal position is
 concerned. The empirical findings from cointegration and causality tests
 that are reported here indicate that in the case of Greece and Ireland tax
 and spending decisions are taken simultaneously by the fiscal authority,
 the tax-and-spend hypothesis is supported in the case of Spain, while
 absence of any causal ordering between government expenditure and tax
 revenues has been established for Portugal. 
Journal: Applied Economics 
Pages: 533-546 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322444 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:533-546




Template-Type: ReDIF-Article 1.0
Author-Name: John Robst 
Author-X-Name-First: John 
Author-X-Name-Last: Robst 
Author-Name: Jack Keil 
Author-X-Name-First: Jack 
Author-X-Name-Last: Keil 
Title: The relationship between athletic participation and academic performance: evidence from NCAA Division III 
Abstract:
  This paper examines athletes' grades and graduation rates at an NCAA
 Division III institution. Thirty-seven per cent of all college athletes
 compete in Division III, yet this group has received little attention in
 the literature. Nontransfer student-athletes have higher GPAs than
 nonathletes, while transfer student-athletes have grades similar to
 nonathletes. Graduation rates are higher for athletes. Thus, athletic
 participation does not impair students' academic performance. 
Journal: Applied Economics 
Pages: 547-558 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322453 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322453 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:547-558




Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Carmichael 
Author-X-Name-First: Fiona 
Author-X-Name-Last: Carmichael 
Author-Name: Robert Ward 
Author-X-Name-First: Robert 
Author-X-Name-Last: Ward 
Title: Youth unemployment and crime in the English regions and Wales 
Abstract:
  This paper investigates the relationship between unemployment and crime
 in England and Wales taking account of both age and gender in the
 unemployment measures. The study is for 1985-95 and is disaggregated to
 the regional level. We allow for different types of crime and the
 deterrence effects of detection and punishment. We also consider the
 relationship between ethnicity and crime in the light of the contentious
 public debate on this issue. Our results indicate that there is a
 systematic positive relationship between burglary rates and male
 unemployment regardless of age. However, we find that while youth
 unemployment is consistently and positively related to criminal damage and
 robbery rates there is no systematic evidence of a relationship between
 adult male unemployment and these specific crimes. Instead our evidence
 supports a positive link between adult unemployment and theft. We find no
 compelling evidence of a link between ethnicity and crime. 
Journal: Applied Economics 
Pages: 559-571 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322462 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:559-571




Template-Type: ReDIF-Article 1.0
Author-Name: Wim Groot 
Author-X-Name-First: Wim 
Author-X-Name-Last: Groot 
Author-Name: Henriette Maassen Vann De Brink 
Author-X-Name-First: Henriette Maassen Vann 
Author-X-Name-Last: De Brink 
Title: Education, training and employability 
Abstract:
  Two hypotheses are tested: (1) education and training increase the
 employability of workers at other tasks within the firm and reduce the
 need for help from supervisors when workers encounter small problems, and
 (2) greater employability and problem solving capability increase wages.
 The empirical results show that greater employability and problem solving
 capability are independent from each other. Formal work-related training
 increases employability. Workers in jobs requiring no induction training
 are less employable at other jobs or departments. Both general and
 specific human capital increase the ability of workers to solve problems
 on their own. Greater employability does not increase wages. Male workers
 who solve problems on their own earn more than men who need help from
 others. The effects of human capital variables on employability and
 problem solving capability do not differ between and men and women.
 However, it is found that the ability to solve problems on one's own has a
 pay off for men but not for women. 
Journal: Applied Economics 
Pages: 573-581 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322471 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322471 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:573-581




Template-Type: ReDIF-Article 1.0
Author-Name: Rosario Sanchez 
Author-X-Name-First: Rosario 
Author-X-Name-Last: Sanchez 
Author-Name: Luis Toharia 
Author-X-Name-First: Luis 
Author-X-Name-Last: Toharia 
Title: Temporary workers and productivity: the case of Spain 
Abstract:
  The primary focus of this paper is on efficiency wages and their testable
 implications. In particular the nature of the relationship between
 efficiency wages, productivity and the make up of the labour force is
 analysed, modelled and subjected to an empirical test. This theory is
 consistent with the views of many managers and personal administrators,
 who tend to ascribe primary importance in wage setting to indirect control
 of the firm's workforce. Here we test a labour augmenting production
 function where effort depends not only on wages but also on the proportion
 of temporary workers. 
Journal: Applied Economics 
Pages: 583-591 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322480 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322480 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:583-591




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Arokiasamy 
Author-X-Name-First: Frank 
Author-X-Name-Last: Arokiasamy 
Author-Name: Ike Mathur 
Author-X-Name-First: Ike 
Author-X-Name-Last: Mathur 
Author-Name: Subhash Sharma 
Author-X-Name-First: Subhash 
Author-X-Name-Last: Sharma 
Title: Effects of US money announcements on the daily exchange rates of industrialized countries 
Abstract:
  This paper examines the effects of anticipated and unanticipated
 components of US money supply announcements on exchange rates for each day
 of the week for eight industrialized countries. The results show that most
 of the reaction to the anticipated component occurs before the
 announcement. However, the unanticipated component of the announcement
 causes strong reactions on the Friday and the Monday following the
 announcement, and in the days preceding the announcement. 
Journal: Applied Economics 
Pages: 593-599 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322499 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322499 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:593-599




Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Cohen 
Author-X-Name-First: Marcel 
Author-X-Name-Last: Cohen 
Title: The impact of brand selection on price competition - a double-edged sword 
Abstract:
  Brand selection - the number of alternative brands of a particular
 product - is a double-edged sword in that on the one hand it increases
 rivalry and so stimulates price competition but on the other hand it
 causes consumers to be poorly informed and thus vulnerable to exploitation
 and so dampens price competition. This phenomenon is demonstrated
 analytically and empirically, with analytical work based on Hotelling's
 unit market line. Using price dispersion as a measure of the state of
 price competition, it is shown that a widening in price dispersion, that
 is, a lessening of price competition, arises from an increase in brand
 selection. Any increase in the number of alternative brands on offer
 (brand selection) causes an increase in 'DIF-ness' (Distortion in
 Information Function) which in turn causes an increase in price dispersion
 (a lessening of price competition). The phenomenon is demonstrated
 empirically through a small survey of household beverages. 
Journal: Applied Economics 
Pages: 601-609 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322507 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322507 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:601-609




Template-Type: ReDIF-Article 1.0
Author-Name: Haiyan Song 
Author-X-Name-First: Haiyan 
Author-X-Name-Last: Song 
Author-Name: Peter Romilly 
Author-X-Name-First: Peter 
Author-X-Name-Last: Romilly 
Author-Name: Xiaming Liu 
Author-X-Name-First: Xiaming 
Author-X-Name-Last: Liu 
Title: An empirical study of outbound tourism demand in the UK 
Abstract:
  A general to specific methodology is used to construct UK demand for
 outbound tourism models to twelve destinations. A tourism destination
 preference index is introduced to take into account social, cultural and
 psychological influences on tourists' decisions concerning their overseas
 holiday destinations. The tests support the existence of a cointegration
 relationship for each of 11 UK overseas holiday destinations. The
 corresponding error correction models are estimated. The empirical results
 show that the long-run income elasticities for all destinations range from
 1.70 to 3.90 with an average of 2.367. The lowest and highest short-run
 income elasticities are 1.05 and 3.78 respectively, with an average of
 2.216. The estimates of the income elasticities imply that overseas
 holidays are highly income elastic while the own-price elasticities
 suggest that the demand for UK outbound tourism is relatively own-price
 inelastic. In terms of the significance of substitution prices in the
 regression equations, Ireland is the favourite substitute destination for
 UK outbound tourists. Ex post forecasts over a period of six years are
 generated from the ECM models and the results compared with those of a
 naive model, an AR(1) model, an ARMA(p,q) model, and a VAR model. The
 forecasting performance criteria show that the ECM model has the best
 overall forecasting performance for UK outbound tourism. 
Journal: Applied Economics 
Pages: 611-624 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322516 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322516 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:611-624




Template-Type: ReDIF-Article 1.0
Author-Name: Young-Yong Kim 
Author-X-Name-First: Young-Yong 
Author-X-Name-Last: Kim 
Author-Name: Jin-Seok Park 
Author-X-Name-First: Jin-Seok 
Author-X-Name-Last: Park 
Author-Name: Sangphill Kim 
Author-X-Name-First: Sangphill 
Author-X-Name-Last: Kim 
Title: Korean inflation during the US military administration of 1945-1948: a further analysis 
Abstract:
  This paper investigates the dynamic process of Korean inflation under the
 US military administration using a structural vector autoregression (SVAR)
 incorporating cointegration relations among the variables. The results
 show that government expenditure shocks are primarily responsible for
 price movements together with money demand shocks having noticeable
 short-run impacts. The study also shows that government expenditure shocks
 are the most important source of fluctuations in each of the other
 variables investigated. The paper concludes that a reform of fiscal and
 monetary system is necessary to stop the sustaining process of inflation
 as well as fluctuations in other macro-variables. 
Journal: Applied Economics 
Pages: 625-633 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322525 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:625-633




Template-Type: ReDIF-Article 1.0
Author-Name: G. S. Maddala 
Author-X-Name-First: G. S. 
Author-X-Name-Last: Maddala 
Author-Name: S. Wu 
Author-X-Name-First: S. 
Author-X-Name-Last: Wu 
Title: Cross-country growth regressions: problems of heterogeneity, stability and interpretation 
Abstract:
  The paper discusses the issues of heterogeneity and stability of
 cross-country growth regressions that have been used to study the problem
 of convergence. Almost all studies use pooled regressions. The paper
 considers the issue of pooling under heterogeneity using a hierarchical
 Bayesian method and estimates growth regressions for different panels
 studied in earlier papers, and different regimes. The conclusion is that
 the convergence rates are higher than those obtained from pooled
 regressions under the assumption of homogeneity and that there is
 instability over time in the relationships. 
Journal: Applied Economics 
Pages: 635-642 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322534 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322534 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:635-642




Template-Type: ReDIF-Article 1.0
Author-Name: Mandy Ryan 
Author-X-Name-First: Mandy 
Author-X-Name-Last: Ryan 
Author-Name: Julie Ratcliffe 
Author-X-Name-First: Julie 
Author-X-Name-Last: Ratcliffe 
Title: Some issues in the application of closed-ended willingness to pay studies to valuing health goods: an application to antenatal care in Scotland 
Abstract:
  Limited resources coupled with unlimited demands means that decisions
 have to be made concerning the allocation of scarce health care resources.
 The economic instrument of willingness to pay (WTP) is one instrument that
 can be used to help this decision-making process. Recommendations from the
 environmental economics literature suggest that the closed end (CE) WTP
 approach should be used. This approach is just beginning to be used to
 value health goods. This paper addresses the sensitivity of the
 closed-ended WTP approach to three issues: the design of the bid vector;
 the upper and lower limits of integration; and the method of analysis.
 These are discussed with reference to a study looking at the value of
 alternative models of ante-natal care in Scotland. The results are
 discussed and conclusions made concerning the use of the CE WTP instrument
 for valuing health goods. 
Journal: Applied Economics 
Pages: 643-651 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322543 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322543 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:643-651




Template-Type: ReDIF-Article 1.0
Author-Name: Brian Cushing 
Author-X-Name-First: Brian 
Author-X-Name-Last: Cushing 
Author-Name: Buhong Zheng 
Author-X-Name-First: Buhong 
Author-X-Name-Last: Zheng 
Title: Re-evaluating differences in poverty among central city, suburban, and nonmetropolitan areas of the US 
Abstract:
  Poverty in the United States varies greatly by location. The difference
 in poverty intensity among locations, however, has only been evaluated by
 the official poverty measure - the headcount ratio - which has several
 drawbacks. The official poverty statistics also suffer from use of a
 single, arbitrary poverty line. This paper uses a recently-developed
 distribution-sensitive measure of poverty and 1990 census data to
 reconsider the difference among central city, suburban, and
 nonmetropolitan poverty levels, as well as differences among US regions.
 Instead of using a single, arguable poverty line, this paper lets the
 poverty line vary over an income range so that conclusions are more
 robust. We check for significance of differences across locations by
 applying some recently-developed methods of statistical inference. 
Journal: Applied Economics 
Pages: 653-660 
Issue: 5 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322552 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:653-660




Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsson 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Carlsson 
Author-Name: Olof Johansson-Stenman 
Author-X-Name-First: Olof 
Author-X-Name-Last: Johansson-Stenman 
Title: Willingness to pay for improved air quality in Sweden 
Abstract:
  The aim of the paper is to quantify individual willingness-to-pay
 measures of improved air quality in Sweden by using the Contingent
 Valuation Method (CVM). Such measures are important for policy makers when
 deciding about public investments and policy instruments in order to
 regulate environmental impacts, e.g. from road transportation and
 industry. The mean willingness to pay (WTP) for a 50% reduction of harmful
 substances where the respondents live and work was about 2000 SEK/year,
 which is of the same order of magnitude as earlier stated preference
 studies in Nordic countries. Most parameters in the econometric analysis
 had the expected sign. WTP was increasing in income, wealth and education;
 it was larger for men, members of environmental organizations, people
 living in big cities (which are on average more polluted), and people who
 own their house or apartment. It was lower for retired people. However,
 the additional WTP for people in big cities, although significantly higher
 than for other people, was lower than expected, indicating a possible
 insensitivity-to-scope effect. 
Journal: Applied Economics 
Pages: 661-669 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322273 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322273 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:661-669




Template-Type: ReDIF-Article 1.0
Author-Name: Kathleen Dorsainvil 
Author-X-Name-First: Kathleen 
Author-X-Name-Last: Dorsainvil 
Title: Collapsing exchange rate regimes in the presence of a parallel market 
Abstract:
  This paper develops a model of an economy where the fixed exchange rate
 is overvalued and coexists with a parallel market for foreign currency.
 Such a situation persists because the parallel marker is used by the
 central authorities as an instrument to delay policy changes. Using the
 Haitian experience, this paper estimates a rationing parameter of foreign
 currency in the official market which translates the extent of tolerance
 of the parallel market. The paper also produces estimates of onestep-ahead
 probability of devaluation. Rationing has been severe and the probability
 of collapse has reached high levels during the period studied. 
Journal: Applied Economics 
Pages: 671-680 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322282 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322282 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:671-680




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Resignato 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Resignato 
Title: Violent crime: a function of drug use or drug enforcement? 
Abstract:
  An assumption of many national drug control policies is the existence of
 a causal relationship between illegal drug use and violent crime. However,
 robust empirical findings supporting this relationship are scarce.
 Alternatively, there is extensive research, much of it in economics, which
 suggests that there may actually be a stronger causal relationship between
 drug enforcement/control/prohibition and violent crime than drug use and
 criminal violence. The paper presents some of the research pertaining to
 the relationship between illegal drugs and violent crime. In addition, a
 violent crime model is empirically tested using data from 24 Metropolitan
 Statistical Areas (MSAs) in the United States to determine the nature and
 strength of this relationship. 
Journal: Applied Economics 
Pages: 681-688 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322291 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322291 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:681-688




Template-Type: ReDIF-Article 1.0
Author-Name: Weiren Wang 
Author-X-Name-First: Weiren 
Author-X-Name-Last: Wang 
Title: Evaluating the technical efficiency of large US law firms 
Abstract:
  We conduct a performance evaluation in terms of technical efficiency of
 large law firms based on a unique sample of 163 large law firms in the USA
 in 1994. To estimate technical efficiency for individual firms, we use the
 stochastic frontier production function with composed errors where output
 (measured in terms of revenue) is a function of various labour and human
 capital inputs. Based on the sample, the average level of technical
 efficiency in the production of legal service in large US law firms is
 estimated at 82.20%. More than 87% of the firms attained 75% or higher
 level of technical efficiency. The estimation results also indicate that
 the number of lawyers, the number of paralegals, and the number of
 associates per partner, have a positive and statistically significant
 effect on the production of legal service. 
Journal: Applied Economics 
Pages: 689-695 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322309 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322309 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:689-695




Template-Type: ReDIF-Article 1.0
Author-Name: Yue Fang 
Author-X-Name-First: Yue 
Author-X-Name-Last: Fang 
Title: Seasonality in foreign exchange volatility 
Abstract:
  The paper reports further empirical evidence on seasonality in foreign
 exchange volatility using high-frequency data. Using a basis of the signal
 plus noise framework, the approach decomposes tick-by-tick Reuters FXFX
 quotes into a random walk and a stationary component, termed the efficient
 price and the pricing error, respectively. The efficient price is not
 directly observable and is an approximation of the 'true' value. The
 pricing error captures the deviation between the observed indicative quote
 and the efficient price. Under the proposed model, daily and intraday
 volatilities of the efficient price are estimated. A pronounced pattern of
 volatility is uncovered and appears related to the daily activity cycle of
 major organized stock exchanges. It is argued that seasonality in
 volatility is a symptom of foreign exchange markets. Results confirm
 Andersen and Bollerslev's findings that significant seasonal effects are
 one important determinant of overall volatility at high frequencies. 
Journal: Applied Economics 
Pages: 697-703 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322318 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322318 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:697-703




Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel 
Author-X-Name-First: D. A. 
Author-X-Name-Last: Peel 
Author-Name: A. E. H. Speight 
Author-X-Name-First: A. E. H. 
Author-X-Name-Last: Speight 
Title: Threshold nonlinearities in unemployment rates: further evidence for the UK and G3 economies 
Abstract:
  The paper appraises the in-sample and out-of-sample adequacy of linear AR
 and nonlinear SETAR models of unemployment rates for Germany, Japan, the
 UK and the US. Tests are reported for the presence and specification of
 threshold nonlinearities, SETAR model estimates, limiting dynamic
 properties and residual diagnostics, and out-of-sample forecasting
 performance. In-sample, threshold non-linearities are confirmed to be
 strongly present for the UK, US and Germany, and more marginally so for
 Japan. Out-of-sample, excepting Japan, SETAR models provide superior
 onestep-ahead forecast on RMSE grounds, most notably for the US. Final
 tests indicate that these models exhibit predictive accuracy in the sense
 of parameter and residual variance stability, implying the potential for
 exploitation of such nonlinearity in official forecasting. 
Journal: Applied Economics 
Pages: 705-715 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322327 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322327 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:705-715




Template-Type: ReDIF-Article 1.0
Author-Name: Cihan Bilginsoy 
Author-X-Name-First: Cihan 
Author-X-Name-Last: Bilginsoy 
Title: Bid dispersion, competition and wage regulation: some field evidence from public contract bidding in British Columbia 
Abstract:
  The paper uses data from British Columbia to show that bid dispersion
 (the difference between the winning and next-lowest bids) in public school
 construction contract bidding is very compact, and that it varies
 inversely with the degree of competition. It also examines the impact of
 the Skill Development and Fair Wage Law (SDFWP), which promulgated wage
 scales and required contractors to pay them in public construction
 projects, on the bid dispersion. Multivariate analysis shows that bid
 dispersion declined after SDFWP. One possible interpretation of this
 result is that the contractors became less prone to the winner's curse
 following the SDFWP. 
Journal: Applied Economics 
Pages: 717-722 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322336 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322336 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:717-722




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed. Asseery 
Author-X-Name-First: Ahmed. 
Author-X-Name-Last: Asseery 
Title: External military threat and the response of the member states of the Gulf Co-operation Council (GCC) 
Abstract:
  The study shows that procurements of traditional arms by two countries
 have the possibility of moving together over time. This is demonstrated
 with reference to Iran and the member states of the Gulf Co-operation
 Council (GCC) for the period 1961- 1996. Acquiring arms by the member
 states of the GCC is shown to be only a response to the perception of
 their leaders to the external threat posed by Iran throughout the varying
 regimes that have ruled Teheran. In the light of the recent emergence of
 macroeconomic problems such as unemployment in the economies of the GCC
 coupled with the ineffectiveness of the financially exhausting build-up of
 arms as a military deterrent policy, one important implication of the
 study is that the priority of the GCC leaders will have to turn to a more
 effective deterrent policy such as acquiring nuclear technology rather
 than engaging in a costly and unsuccessful Arab military alliance as
 experienced in the 1970s. 
Journal: Applied Economics 
Pages: 723-728 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322345 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322345 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:723-728




Template-Type: ReDIF-Article 1.0
Author-Name: Shew-Jiuan Su 
Author-X-Name-First: Shew-Jiuan 
Author-X-Name-Last: Su 
Author-Name: Steven Yen 
Author-X-Name-First: Steven 
Author-X-Name-Last: Yen 
Title: A censored system of cigarette and alcohol consumption 
Abstract:
  Many previous studies of US cigarette and alcohol consumption have
 focused on single equations. However, the addictive nature of consumption
 suggests that it is more appropriate to model these products as a system.
 We propose a two-step estimation procedure and apply the procedure to a
 system of equations for cigarette, beer and wine consumption. Results
 differ from those derived from an existing two-step procedure. Findings
 suggest that consumption of cigarettes, beer and wine is responsive to
 income changes but the elasticities are rather small. Personal physiques,
 education, age, race, ethnicity, health, gender, employment status, and
 regions also play significant roles in consumption. 
Journal: Applied Economics 
Pages: 729-737 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322354 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:729-737




Template-Type: ReDIF-Article 1.0
Author-Name: Pantelis Kalaitzidakis 
Author-X-Name-First: Pantelis 
Author-X-Name-Last: Kalaitzidakis 
Author-Name: George Korniotis 
Author-X-Name-First: George 
Author-X-Name-Last: Korniotis 
Title: The Solow growth model: vector autoregression (VAR) and cross-section time-series analysis 
Abstract:
  The paper examines whether the Mankiw et al. results regarding the Solow
 model are specific tothe statistical methodology used. Therefore, instead
 of using cross-section data, annual data were used and the Solow model was
 investigated using a Vector AutoRegression (VAR) analysis for the G7
 countries, and cross-section time-series data for the G3 countries.
 Analysis shows that, in both cases, the Mankiw et al. results generally
 hold. It also shows that the use of annual data can play an important and
 complementary role in revealing the differences in the growth process
 between individual countries. 
Journal: Applied Economics 
Pages: 739-747 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322363 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:739-747




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Cooke 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Cooke 
Author-Name: Wendy Chapple 
Author-X-Name-First: Wendy 
Author-X-Name-Last: Chapple 
Title: Merger activity in the waste disposal industry: the impact and the implications of the Environmental Protection Act 
Abstract:
  Over the last two and a half decades, the UK's waste disposal industry
 has evolved from a disparate collection of localized small-scale operators
 to a coherent multimillion pound industry. With particular reference to
 the 1990 Environmental Protection Act, this paper uses multinomial logit
 analysis to estimate the degree to which increased regulation of the
 industry has led to a rise in merger activity within the sector. It is
 shown that the Act did increase the probability of a waste disposal firm
 being associated with merger activity, either as an acquiring firm or as a
 target for other firms. As a result, intra-industry consolidation took
 place alongside attempts by non-waste disposal firms to diversify their
 interests within a buoyant sector which was avoiding the recessionary
 downturn affecting other sectors of the British economy. 
Journal: Applied Economics 
Pages: 749-755 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:749-755




Template-Type: ReDIF-Article 1.0
Author-Name: Joaquin Maudos 
Author-X-Name-First: Joaquin 
Author-X-Name-Last: Maudos 
Author-Name: Jose Manuel Pastor 
Author-X-Name-First: Jose Manuel 
Author-X-Name-Last: Pastor 
Author-Name: Lorenzo Serrano 
Author-X-Name-First: Lorenzo 
Author-X-Name-Last: Serrano 
Title: Convergence in OECD countries: technical change, efficiency and productivity 
Abstract:
  The aim of this study is to analyse labour productivity convergence in
 the OECD countries over the period 1975-90. A nonparametric frontier
 approach is used to calculate the Malmquist productivity index. By
 breaking it down, the contribution in the growth of labour productivity of
 technical progress, of changes in efficiency, and of the accumulation of
 inputs per worker are quantified. Unlike other studies, the results
 obtained show that technical change has worked against labour productivity
 convergence, since it has always been greater in the countries with higher
 labour productivity. 
Journal: Applied Economics 
Pages: 757-765 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322381 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322381 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:757-765




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitris Hatzinikolaou 
Author-X-Name-First: Dimitris 
Author-X-Name-Last: Hatzinikolaou 
Title: Sensitivity of consumption to income and to government purchases: some specification and estimation issues 
Abstract:
  The paper derives a nonlinear error-correction model (ECM) for
 consumption and shows that existing models that are based on quadratic
 utility, combine permanent income and current-income consumption, and nest
 (or could nest) the hypothesis of substitutability between private
 consumption and government purchases are special cases of the ECM. The
 importance of some econometric issues that have not received proper
 attention in the literature is demonstrated by estimating the models using
 US aggregate quarterly data, 1953:1-1992:4. The evidence suggests that the
 ECM produces more reliable estimates than do the existing restrictive
 models. 
Journal: Applied Economics 
Pages: 767-775 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322390 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322390 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:767-775




Template-Type: ReDIF-Article 1.0
Author-Name: Phil Shackley 
Author-X-Name-First: Phil 
Author-X-Name-Last: Shackley 
Author-Name: Simon Dixon 
Author-X-Name-First: Simon 
Author-X-Name-Last: Dixon 
Title: Using contingent valuation to elicit public preferences for water fluoridation 
Abstract:
  The methods and results of a contingent valuation survey to elicit public
 preferences for water fluoridation are reported. The study demonstrates
 that not only is it important to acknowledge that there will be losers
 from the introduction of such a programme but that losers must be allowed
 to express a value for the magnitude of their perceived loss. Two methods
 of valuing this loss are explored. Conventional willingness to accept
 compensation questions are compared with questions in which losers are
 asked to state their willingness to pay to prevent their water being
 fluoridated. The results provide tentative support for asking willingness
 to pay to prevent questions instead of willingness to accept questions
 when evaluating certain types of public good. The issue of protest
 responses in contingent valuation surveys is also highlighted and
 discussed. 
Journal: Applied Economics 
Pages: 777-787 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322408 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322408 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:777-787




Template-Type: ReDIF-Article 1.0
Author-Name: P. M. C. De Boer 
Author-X-Name-First: P. M. C. 
Author-X-Name-Last: De Boer 
Author-Name: C. Martinez 
Author-X-Name-First: C. 
Author-X-Name-Last: Martinez 
Author-Name: R. Harkema 
Author-X-Name-First: R. 
Author-X-Name-Last: Harkema 
Title: Trade liberalization and the allocation over domestic and foreign supplies: a case study for Spanish manufacturing 
Abstract:
  The purpose of the paper is to investigate whether Spain's accession to
 the European Union in 1986 caused a structural break in the allocation of
 total supplies of manufactures over domestic and foreign supplies. To that
 end the homogeneity-constrained Almost Ideal Demand System is used to
 specify the long-run equilibrium relationships between the shares in total
 supplies and total real demand and relative prices and a first-order error
 correction mechanism in order to describe the adjustment process to
 equilibrium. Using a formal statistical test, it turns out that a
 structural break actually occurred and led to a rather sharp decrease in
 the share of Spain and an increase in the shares of the other members of
 the European Union. 
Journal: Applied Economics 
Pages: 789-799 
Issue: 6 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322417 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322417 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:789-799




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Collins 
Author-X-Name-First: Alan 
Author-X-Name-Last: Collins 
Author-Name: Martin Snell 
Author-X-Name-First: Martin 
Author-X-Name-Last: Snell 
Title: Parental preferences and choice of school 
Abstract:
  This paper provides a UK high resolution microeconometric study of
 parental preferences and the choice process for secondary schools. Given
 the particular geographical features of the region, first preference
 almost entirely related to one of two state schools, which is a situation
 that perhaps better reflects the real nature of the options faced by most
 parents in the UK. In contrast to earlier work, distance and access
 considerations were explicitly incorporated in the preference and choice
 models estimated and found to be a significant influence on parental
 decisions. Further significant factors were found, dependent upon the
 parents' actual choice of school. 
Journal: Applied Economics 
Pages: 803-813 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322147 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322147 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:803-813




Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Nayga 
Author-X-Name-First: Rodolfo 
Author-X-Name-Last: Nayga 
Title: Schooling, health knowledge and obesity 
Abstract:
  The connection between schooling and health is well documented. An
 important empirical issue that needs to be examined, however, is whether
 schooling's effects are due to individual health knowledge differences.
 This empirical study examines this issue with an increasingly important
 health indicator, obesity. Since provision of health knowledge is a major
 tool of public agencies promoting health, this empirical study uses a new
 direct measure of health knowledge to test this hypothesis. The results
 show that knowledge is inversely related to the probability that an
 individual is obese. Schooling's effects on relative weight and the
 probability of being obese are explained by differences in knowledge. This
 result may imply that schooling's effect on the allocative efficiency of
 the household production of health is the main reason schooling is linked
 to health behaviour. The result also may imply that the most effective
 method of health education is to highlight the disease element of poor
 dietary habits and health. More importantly, the simulations conducted
 suggest positive returns to knowledge based on improvements in the
 probability estimates. 
Journal: Applied Economics 
Pages: 815-822 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322156 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322156 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:815-822




Template-Type: ReDIF-Article 1.0
Author-Name: Fernando San Miguel 
Author-X-Name-First: Fernando San 
Author-X-Name-Last: Miguel 
Author-Name: Mandy Ryan 
Author-X-Name-First: Mandy 
Author-X-Name-Last: Ryan 
Author-Name: Emma McIntosh 
Author-X-Name-First: Emma 
Author-X-Name-Last: McIntosh 
Title: Applying conjoint analysis in economic evaluations: an application to menorrhagia 
Abstract:
  The increased demand for health care, coupled with limited resources,
 means that decisions have to be made concerning the allocation of scarce
 health care resources. This paper considers how conjoint analysis (CA) can
 be used to aid this decision making process. It is shown how the technique
 can be used to estimate marginal rates of substitution between attributes,
 willingness to pay (WTP) if cost is included as an attribute and overall
 utility scores for different ways of providing a service. The technique is
 applied to consider women's preferences for two surgical procedures in the
 treatment of menorrhagia: hysterectomy and conservative surgery. The
 results suggest conservative surgery is preferred to hysterectomy, as
 indicated by higher utility scores for the former and a marginal WTP of
 7593 to have conservative surgery rather than hysterectomy. The internal
 validity of CA was also shown. It is concluded that CA is a potentially
 useful instrument for policy makers. However, numerous methodological
 issues need addressing before the technique becomes an established
 instrument within economic evaluations. 
Journal: Applied Economics 
Pages: 823-833 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322165 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322165 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:823-833




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Rosenman 
Author-X-Name-First: Robert 
Author-X-Name-Last: Rosenman 
Author-Name: Tong Li 
Author-X-Name-First: Tong 
Author-X-Name-Last: Li 
Author-Name: Dan Friesner 
Author-X-Name-First: Dan 
Author-X-Name-Last: Friesner 
Title: Grants and cost shifting in outpatient clinics 
Abstract:
  Cost shifting for a non-profit, revenue maximizing healthcare provider
 which faces a constraint that profit must be non-negative is examined,
 focusing on fixed payment programmes like Medicare. In addition, how grant
 money affects cost shifting and extend the empirical analysis of cost
 shifting to outpatient clinics, using data from publicly funded clinics in
 California is explored. The results are consistent with cost shifting, and
 indicate that the cause may be that the Medicare payment system cuts
 revenues more than costs, forcing clinics to subsidize the care of
 Medicare patients by increasing prices to other patients. 
Journal: Applied Economics 
Pages: 835-843 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322174 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322174 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:835-843




Template-Type: ReDIF-Article 1.0
Author-Name: Fiona MaCphail 
Author-X-Name-First: Fiona 
Author-X-Name-Last: MaCphail 
Title: Are estimates of earnings inequality sensitive to measurement choices? A case study of Canada in the 1980s 
Abstract:
  While it is necessary that researchers make choices in order to estimate
 inequality, the reasons for the measurement choices and their impact on
 inequality estimates have not been widely assessed. This paper uses
 Canadian data from the 1980s to analyse whether inequality estimates are
 sensitive to common measurement choices. Seemingly minor technical choices
 about the treatment of outlying observations, such as the use of
 top-income coded data, exclusion of very high and low observations, and
 differences among data sets in the capture of very high observations
 affect estimates of inequality. Further, the impact of the treatment of
 outlying observations on inequality estimates are at least as large as the
 impact of measurement choices of a conceptual nature, such as the income
 definition and population selection. The sensitivity of inequality
 estimates to measurement choices, which often remain invisible, affect
 inferences about the relative degree of inequality at a given point in
 time among countries and changes over time. 
Journal: Applied Economics 
Pages: 845-860 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322183 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322183 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:845-860




Template-Type: ReDIF-Article 1.0
Author-Name: Clive Granger 
Author-X-Name-First: Clive 
Author-X-Name-Last: Granger 
Author-Name: Yongil Jeon 
Author-X-Name-First: Yongil 
Author-X-Name-Last: Jeon 
Title: Model evaluation based on residual analysis of two similar models 
Abstract:
  Models that may appear to have different properties may in fact produce
 residuals that differ only in subtle ways. By analysing the relationships
 between model residuals the problems in distinguishing between models can
 perhaps be discovered, as illustrated by the econometric examples
 considered. Regressing residuals gives the long-memory residual, which is
 the difference between two models, but this difference is very subtle and
 deeply hidden, which explains why the traditional standard technique does
 not find this difference. 
Journal: Applied Economics 
Pages: 861-867 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322192 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322192 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:861-867




Template-Type: ReDIF-Article 1.0
Author-Name: Li Lian Ong 
Author-X-Name-First: Li Lian 
Author-X-Name-Last: Ong 
Author-Name: Jason Mitchell 
Author-X-Name-First: Jason 
Author-X-Name-Last: Mitchell 
Title: Professors and hamburgers: an international comparison of real academic salaries 
Abstract:
  In recent years, academic staff unions and associations have argued for
 higher salaries for academics on the grounds that existing salaries have
 not kept pace with inflation, are well below commercial salaries and, most
 glaringly, are much lower than the salaries of their overseas
 counterparts. However, most international comparisons are made based on
 exchange rate conversions, which is inappropriate since purchasing power
 differentials are only reflected in exchange rates in the long term.
 Furthermore, the volatility of exchange rates make such conversions highly
 inaccurate. A comparison is provided of real academic salaries by
 converting the nominal salaries in each country to their purchasing power
 equivalents, using the Big Mac Index. Our results show that real academic
 salaries are highest in Hong Kong and Singapore, relative to the developed
 countries, while Hong Kong tax and social security deductions are lowest.
 Furthermore, real salary levels, combined with intrinsic considerations
 such as the quality-of-life, indicate that Canada and New Zealand are
 unattractive places for visiting/migrating academics, while Australia and
 the USA are relatively attractive. It is suggested that these findings
 could be of use to policy-makers and academic unions in salary
 negotiations, as well as academics making relocation decisions. 
Journal: Applied Economics 
Pages: 869-876 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322200 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322200 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:869-876




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Vanhoudt 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Vanhoudt 
Title: An assessment of the macroeconomic determinants of inequality 
Abstract:
  The paper provides an assessment of the determinants of income inequality
 in a broader macroeconomic context. In particular the hypothesis that
 income inequality is related to fundamentals affecting economic growth is
 examined. 
Journal: Applied Economics 
Pages: 877-883 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322219 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322219 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:877-883




Template-Type: ReDIF-Article 1.0
Author-Name: Jaakko Pehkonen 
Author-X-Name-First: Jaakko 
Author-X-Name-Last: Pehkonen 
Title: Employment, unemployment and output growth in booms and recessions: time series evidence from Finland, 1970-1996 
Abstract:
  The Finnish economy experienced dramatic changes in the early 1990s. The
 collapse of the economy in 1991 resulted in a 12% decline in GDP over the
 years 1991-1993, leading to a significant fall in the demand for labour
 and a rise in unemployment. The study contributes to the discussion on
 possible changes in the functioning of the Finnish economy by scrutinizing
 the stability of the employment/unemploymentoutput relation. The empirical
 analysis, based on aggregate variables from the period 1975-1996, suggests
 that the relationship between aggregate-level employment/ unemployment and
 output growth remained relatively stable throughout the investigation
 period. 
Journal: Applied Economics 
Pages: 885-900 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322228 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322228 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:885-900




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Jenkins 
Author-X-Name-First: Michael 
Author-X-Name-Last: Jenkins 
Author-Name: Christopher Tsoukis 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Tsoukis 
Title: Nominal inertia and shock persistence in UK business cycles 
Abstract:
  A structural VAR methodology is used for UK data to identify and map out
 the effects of innovations in the money supply, employment, output, wages
 and prices. Moreover, bands of two standard errors are computed for the
 impulse response functions so that comment may be made on the significance
 of the dynamic responses of the variables to the simulated shocks. This
 allows conclusions to be drawn on the persistence of shocks. Results
 suggest that output variation is largely determined by aggregate demand
 shocks over the business cycle frequency. Importantly, evidence is also
 found of rigidities in the form of price inertia and nominal wage
 stickiness. 
Journal: Applied Economics 
Pages: 901-907 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322237 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322237 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:901-907




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Giannakas 
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Giannakas 
Author-Name: Kien Tran 
Author-X-Name-First: Kien 
Author-X-Name-Last: Tran 
Author-Name: Vangelis Tzouvelekas 
Author-X-Name-First: Vangelis 
Author-X-Name-Last: Tzouvelekas 
Title: Efficiency, technological change and output growth in Greek olive growing farms: a Box-Cox approach 
Abstract:
  This paper captures the relative contributions of input growth,
 technological change and technical efficiency to olive oil production
 growth for a panel data set of 125 Greek olive-growing farms for the
 period 1987 to 1993. A flexible generalized quadratic Box-Cox functional
 form is proposed to represent the underlying production technology. This
 functional specification copes with the problem of zero inputs and nests
 all widely used production frontiers. Empirical results show that the
 observed production growth is mainly due to increased input use since it
 was not accompanied by rapid introduction of technological innovations and
 improvements in efficiency levels. 
Journal: Applied Economics 
Pages: 909-916 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322246 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322246 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:909-916




Template-Type: ReDIF-Article 1.0
Author-Name: Zeynep Onder 
Author-X-Name-First: Zeynep 
Author-X-Name-Last: Onder 
Title: High inflation and returns on residential real estate: evidence from Turkey 
Abstract:
  This study examines the hedging behaviour of real estate investment in a
 high inflationary environment. The hypothesis that the real estate
 investment hedges both expected and unexpected inflation is tested. The
 returns of investment on residential apartments in several neighbourhoods
 in the capital of Turkey are used in the analysis. Expected inflation is
 measured by three proxies. It is found that in a high inflationary
 environment, real estate investment does not provide hedge against
 inflation. A reverse causality between returns on real estate and changes
 in expected inflation is not observed. However, a relationship between
 real returns and changes in inflationary expectations seem to be different
 in relatively low and relatively high income neighbourhoods. 
Journal: Applied Economics 
Pages: 917-931 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322255 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322255 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:917-931




Template-Type: ReDIF-Article 1.0
Author-Name: Liam Gallagher 
Author-X-Name-First: Liam 
Author-X-Name-Last: Gallagher 
Title: Macroeconomic shocks under alternative exchange rate regimes: the Irish experience 
Abstract:
  The paper investigates the nature of Irish macroeconomic shocks and their
 correlation with German and UK shocks. A restricted VAR of real output and
 prices is employed to distinguish aggregate demand and supply shocks for
 the three countries. To identify the role of Irish exchange rate policy
 two periods are considered: the preERM period and the ERM period. The
 results indicate that while the change in exchange rate policy had an
 effect on the nature of demand and supply shocks, the ERM did not have the
 effect of increasing the correlation of Irish shocks with Germany or the
 UK. Evidence of substantial asymmetric shocks with Germany and the UK
 exist. Thus, Ireland as a member of the EMU faces increased cost of
 adjustment to asymmetric macroeconomic shocks. 
Journal: Applied Economics 
Pages: 933-944 
Issue: 7 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322264 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322264 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:933-944




Template-Type: ReDIF-Article 1.0
Author-Name: Walid Hejazi 
Author-X-Name-First: Walid 
Author-X-Name-Last: Hejazi 
Title: Yield spreads as predictors of industrial production: expectations on short rates or term premia? 
Abstract:
  This paper reconsiders information in the US T-bill term structure for
 predicting movements in real monthly industrial production. It is shown
 that although T-bill spreads contain little or no predictive content,
 increases in term premia estimated from a GARCH-M model of the term
 structure do. Since these estimated premia are linear functions of the
 conditional variance of excess returns, the implication is that increases
 in interest rate variability are associated with reductions in industrial
 production. This evidence is robust to the inclusion of the spread between
 the 10-year Tbond yield and one-month-T-bill yields. The T-bill term
 structure therefore contains information which is independent of the
 long-end of the term structure. 
Journal: Applied Economics 
Pages: 945-951 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400321995 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400321995 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:945-951




Template-Type: ReDIF-Article 1.0
Author-Name: Jane Fry 
Author-X-Name-First: Jane 
Author-X-Name-Last: Fry 
Author-Name: Tim Fry 
Author-X-Name-First: Tim 
Author-X-Name-Last: Fry 
Author-Name: Keith McLaren 
Author-X-Name-First: Keith 
Author-X-Name-Last: McLaren 
Title: Compositional data analysis and zeros in micro data 
Abstract:
  The application of compositional data analysis methods in economics has
 some attraction. The methodology relies upon the use of 'log-ratios' in
 the statistical analysis. Such an approach is not possible when the data
 to be analysed include observations where the observed budget share is
 zero. We, therefore, consider and extend the methods of compositional data
 analysis in the situation where the data to be analysed include
 observations where the observed budget share is zero. The modified
 compositional data methods are discussed both in statistical terms and
 through potential economic interpretations of the method. Further, the
 modified methodology is applied to the 1988-89 Australian Household
 Expenditure Survey yielding estimates for a system of Engel curves. 
Journal: Applied Economics 
Pages: 953-959 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322002 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:953-959




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Combris 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Combris 
Author-Name: Sebastien Lecocq 
Author-X-Name-First: Sebastien 
Author-X-Name-Last: Lecocq 
Author-Name: Michael Visser 
Author-X-Name-First: Michael 
Author-X-Name-Last: Visser 
Title: Estimation of a hedonic price equation for Burgundy wine 
Abstract:
  A hedonic price equation and two jury grade equations are estimated for
 Burgundy wine. The approach is the same as in an earlier Bordeaux wine
 paper (Combris et al., 1997). The data come from an experimental study
 that is very similar to the study on Bordeaux wines. The results for the
 two wine-growing regions are compared and discussed. 
Journal: Applied Economics 
Pages: 961-967 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322011 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:961-967




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Arnade 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Arnade 
Author-Name: Daniel Pick 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Pick 
Title: Seasonal oligopoly power: the case of the US fresh fruit market 
Abstract:
  What has been ignored in much of the existing studies of oligopoly power
 is that market behaviour need not be static in nature, and oligopoly power
 in agriculture need not be present in every month of the year. In a market
 which is characterized by seasonality and supplied by different sources
 during different seasons, it is quite possible to observe oligopoly power
 during different months of the year. In this paper, a method for
 estimating and testing for seasonal changes in the degree of oligopoly
 power is introduced. It was found that in the pear market, oligopoly power
 coefficients remain low throughout the year. On the other hand, the grape
 market is characterized by higher oligopoly power coefficients and
 considerable season variations. 
Journal: Applied Economics 
Pages: 969-977 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:969-977




Template-Type: ReDIF-Article 1.0
Author-Name: J. G. Hirschberg 
Author-X-Name-First: J. G. 
Author-X-Name-Last: Hirschberg 
Title: Modelling time of day substitution using the second moments of demand 
Abstract:
  Time of day (TOD) rates are a commonly used method for peak load pricing
 of many services. Such services as; electricity, communications,
 transportation, shared computer facilities, and computer networks (i.e.
 the Internet), either use, or will use, some form of TOD pricing. However,
 TOD rates do not ensure a movement towards economic efficiency unless the
 patterns of TOD substitution are known. The model presented here provedes
 a method for estimating TOD substitution without the need for rate
 experiments that have proven to be both costly and limited by sample
 selection bias problems. This model employs the estimated second moment of
 demand to estimate a matrix of relative own- and cross-price elasticities
 and it can estimate elasticities even when there is no apparent TOD price
 variation. The low level of computations required for the estimates allows
 the application of a bootstrap procedure to estimate the covariance matrix
 of the elasticities. Two applications of this model are presented: a case
 of aggregate demand for computer services and a case of an individual
 household's electricity demand. 
Journal: Applied Economics 
Pages: 979-986 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:979-986




Template-Type: ReDIF-Article 1.0
Author-Name: M. L. Chas-Amil 
Author-X-Name-First: M. L. 
Author-X-Name-Last: Chas-Amil 
Author-Name: J. Buongiorno 
Author-X-Name-First: J. 
Author-X-Name-Last: Buongiorno 
Title: The demand for paper and paperboard: econometric models for the European Union 
Abstract:
  Cost minimization theory suggests national demand equations for paper and
 paperboard in which demand is a negative function of the price of paper
 and paperboard, and a positive function of gross national product. A
 dynamic version of this model was estimated with data from European Union
 countries, for newsprint, printing and writing paper, and other paper and
 paperboard. Country-by-country equations proved unstable. Pooling the data
 across countries, with dummy variables to account for fixed country
 effects, led to well defined short-term and long-term elasticities with
 respect to price and gross national product. The hypothesis that income
 and price elasticities were the same across the European Union countries
 could not be rejected at the 1% significance level, for the three product
 groups. From 1969 to 1995, most of the growth in demand had been due to
 the growth in national product, while price increases had only a small
 negative effect. 
Journal: Applied Economics 
Pages: 987-999 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:987-999




Template-Type: ReDIF-Article 1.0
Author-Name: N. Kulendran 
Author-X-Name-First: N. 
Author-X-Name-Last: Kulendran 
Author-Name: Kenneth Wilson 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Wilson 
Title: Is there a relationship between international trade and international travel? 
Abstract:
  This paper investigates, for the first time, whether there is a
 relationship between international trade and international travel flows
 using time series econometric techniques. Using data for Australia and
 four important travel and trading partners, the USA, the UK, NZ and Japan,
 the paper tests three specific hypotheses: that business travel leads to
 international trade; that international trade leads to international
 travel; and that international travel, other than business travel, leads
 to international trade. Using cointegration and Granger-causality
 approaches the paper finds support for prior beliefs that there is a
 relationship between international travel and international trade, and
 suggests that this may be a fruitful area for further research. 
Journal: Applied Economics 
Pages: 1001-1009 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322057 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1001-1009




Template-Type: ReDIF-Article 1.0
Author-Name: Geoff Riddington 
Author-X-Name-First: Geoff 
Author-X-Name-Last: Riddington 
Author-Name: Colin Sinclair 
Author-X-Name-First: Colin 
Author-X-Name-Last: Sinclair 
Author-Name: Nicola Milne 
Author-X-Name-First: Nicola 
Author-X-Name-Last: Milne 
Title: Modelling choice and switching behaviour between Scottish ski centres 
Abstract:
  The paper identifies the need to model the skier's choice of centre and
 the basic ideas underlying discrete choice models and their estimation. It
 then identifies data requirements and sources, the final choice of
 specification and the estimated parameters of the resultant nested
 multinomial logit model. The results indicate two quite distinct markets.
 For day-trippers snow cover, cost, and, to a lesser extent, the journey
 length, were the critical factors. For those staying overnight the key
 determinant in this market seems to be accommodation. Interestingly
 centres which for the day-tripper are competitors, become, for the
 overnight customer, complementary. 
Journal: Applied Economics 
Pages: 1011-1018 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322066 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322066 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1011-1018




Template-Type: ReDIF-Article 1.0
Author-Name: Andre Croppenstedt 
Author-X-Name-First: Andre 
Author-X-Name-Last: Croppenstedt 
Author-Name: Meloria Meschi 
Author-X-Name-First: Meloria 
Author-X-Name-Last: Meschi 
Title: Measuring wage discrimination in Italy: a random-coefficient approach 
Abstract:
  Using data from a representative 1989 household survey for Italy we
 estimate random-coefficient earnings frontiers by gender, marital status
 and location. These estimates are used to calculate discrimination
 indices. Our results show that fixed coefficients can be rejected in all
 cases. A wide range on the estimated coefficients indicates a high degree
 of variation in the quality of the observed human-capital variables as
 well as different degrees of ability as perceived by the employer. We find
 reverse discrimination for single females in the South and the North. For
 married females there is evidence of discrimination, particularly in the
 South. We isolate the effects of tenure and education on discrimination
 and find that these reduce discrimination for Southern-married females. 
Journal: Applied Economics 
Pages: 1019-1028 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322075 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1019-1028




Template-Type: ReDIF-Article 1.0
Author-Name: Kyriacos Kyriacou 
Author-X-Name-First: Kyriacos 
Author-X-Name-Last: Kyriacou 
Author-Name: Bryan Mase 
Author-X-Name-First: Bryan 
Author-X-Name-Last: Mase 
Title: Rolling settlement and market liquidity 
Abstract:
  This paper investigates the impact on UK stock and option markets of the
 change from an account based settlement system to a rolling settlement
 procedure. Such a change increases the transaction costs of short-term
 margin traders, and is likely to impact on the liquidity of the underlying
 market, as well as trading in the options market. Evidence is presented
 that the settlement procedure does impact on the liquidity of the market.
 Further, we find that rolling settlement increased market liquidity,
 consistent with the exit of margin traders as a result of the increase in
 short selling costs. Associated with this increase in liquidity is a
 significant reduction in nonoptionable stock trading volume, implying that
 margin trading may have been more prevalent in stocks without options.
 Finally, it is shown that while trading in stock options increased, the
 volatilities implied from call and put option prices indicate that put
 options have become relatively more expensive. This reflects the change in
 demand induced by the new settlement procedure, especially in terms of the
 increase in short selling costs. 
Journal: Applied Economics 
Pages: 1029-1036 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322084 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322084 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1029-1036




Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Alberola 
Author-X-Name-First: Enrique 
Author-X-Name-Last: Alberola 
Author-Name: Juan Ayuso 
Author-X-Name-First: Juan 
Author-X-Name-Last: Ayuso 
Author-Name: J. David Lopez-Salido 
Author-X-Name-First: J. David 
Author-X-Name-Last: Lopez-Salido 
Title: When may depreciations fuel inflation? An application to the Spanish case 
Abstract:
  In this paper it is considered that the relationship between nominal
 exchange rate and prices depends on the nature of the shocks impacting the
 economy. In order to identify the sources of nominal exchange rate and
 relative price fluctuations we impose long-run restrictions on the
 dynamics of these variables through a 2-variable and 3-variable SVAR,
 respectively. This methodology is applied to data on the Spanish economy
 and find that supply and real demand shocks move nominal exchange rates
 and relative prices in opposite directions. Nominal shocks, however, move
 both variables in the same direction. Thus, in this case, only under
 nominal shocks may exchange rate depreciations fuel inflation. 
Journal: Applied Economics 
Pages: 1037-1049 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322093 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1037-1049




Template-Type: ReDIF-Article 1.0
Author-Name: Javid Taheri 
Author-X-Name-First: Javid 
Author-X-Name-Last: Taheri 
Title: On the alternative explanations of persistence of unemployment in the OECD countries 
Abstract:
  This paper begins with a summary statement of a few relevant facts about
 the worsening state of unemployment since the mid-1970s in the OECD
 countries. A joint statistical test of the hypotheses of the natural rate,
 hysteresis, and the persistence is conducted by pooling annual data
 (1963-93) from up to 16 OECD countries. The results provide strong
 evidence in support of the persistence hypothesis and the non-linearity of
 the Phillips curve while concurrently rejecting the other two alternative
 explanations. 
Journal: Applied Economics 
Pages: 1051-1057 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322101 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322101 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1051-1057




Template-Type: ReDIF-Article 1.0
Author-Name: Bharat Kolluri 
Author-X-Name-First: Bharat 
Author-X-Name-Last: Kolluri 
Author-Name: Michael Panik 
Author-X-Name-First: Michael 
Author-X-Name-Last: Panik 
Author-Name: Mahmoud Wahab 
Author-X-Name-First: Mahmoud 
Author-X-Name-Last: Wahab 
Title: Government expenditure and economic growth: evidence from G7 countries 
Abstract:
  This paper examines Wagner's Law of Public Expenditure, which emphasizes
 economic growth as the fundamental determinant of public sector growth,
 using time series data drawn from the G7 industrialized countries over the
 sample period 1960 1993. It presents evidence on both the short- and
 long-run effects of growth in national income on government expenditure by
 resorting to recent developments in the theory of cointegrated processes.
 An attempt is also made in this study to examine if Wagner's Law holds
 between certain key components of government expenditure and income. 
Journal: Applied Economics 
Pages: 1059-1068 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322110 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322110 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1059-1068




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Weber 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Weber 
Title: Vacancy durations - a model for employer's search 
Abstract:
  This paper investigates a Dutch data set on vacancy durations and numbers
 of applicants to enquire employers' search strategies. A nonsequential
 search process assumes that most vacancies are filled from a pool of
 applicants, which is formed shortly after the posting of the vacancy. The
 time spent on recruiting applicants and the duration of the selection
 process are estimated with a proportional hazard model, via the arrival
 and attrition rates of applicants. 
Journal: Applied Economics 
Pages: 1069-1075 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322129 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322129 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1069-1075




Template-Type: ReDIF-Article 1.0
Author-Name: Nasiruddin Ahmed 
Author-X-Name-First: Nasiruddin 
Author-X-Name-Last: Ahmed 
Title: Export response to trade liberalization in Bangladesh: a cointegration analysis 
Abstract:
  This paper investigates the response of Bangladesh's aggregate
 merchandise exports to a real exchange rate-based trade liberalization
 programme during the period 1974-1995. The cointegration and error
 correction modelling approaches have been applied. The empirical results
 suggest that there exists a unique long-run or equilibrium relationship
 among real quantities of export, relative export price and export-weighted
 real effective exchange rate. The short-term dynamic behaviour of
 Bangladesh's export supply has been investigated by estimating an error
 correction model in which the error correction term has been found to be
 correctly signed and statistically significant. Relative export price
 (lagged two quarters), real effective exchange rate, predicted values of
 real GDP (lagged one quarter) and a dummy variable capturing the effects
 of trade liberalization programme have all emerged as important
 determinants of an aggregate export supply function for Bangladesh. The
 error correction model has also been found to be robust as it satisfies
 all relevant diagnostic tests. 
Journal: Applied Economics 
Pages: 1077-1084 
Issue: 8 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400322138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1077-1084




Template-Type: ReDIF-Article 1.0
Author-Name: George Karatzas 
Author-X-Name-First: George 
Author-X-Name-Last: Karatzas 
Title: On the determination of the US aggregate health care expenditure 
Abstract:
  Per capita real health care expenditure is examined against three major
 groups of explanatory variables: economic, demographic, and health stock,
 and it is found that the three groups of variables have an impact on real
 health care spending. Other subcategories, such as real private, and
 government health care, pharmaceutical, dental, home nursing, ambulatory,
 personal medical consumption, and in-patient expenditures have also been
 examined, and have been found to be affected by the explanatory variables.
 For several subcomponents there is evidence of supplier inducement. Of the
 demographic group of variables, the ageing population had an impact only
 on the per capita real overall, and private health care outlay, and
 pharmaceutical spending. Also, cointegrating relationships were found and
 consistent estimators of the elasticities found. 
Journal: Applied Economics 
Pages: 1085-1099 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404236 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404236 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1085-1099




Template-Type: ReDIF-Article 1.0
Author-Name: J. O. S. Wilson 
Author-X-Name-First: J. O. S. 
Author-X-Name-Last: Wilson 
Author-Name: J. M. Williams 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Williams 
Title: The size and growth of banks: evidence from four European countries 
Abstract:
  This paper investigates the relationship between size and growth for a
 sample of banks from France, Germany, Italy and the UK over the period
 1990 to 1996. Using several measures of bank size (total assets, equity
 and value of off balance sheet business), we test for size effects on
 growth, using models which incorporate the influences of previous growth,
 bank type and country of origin. The results of the analysis suggest that
 for Italy, small banks tend to grow faster than larger banks. No
 relationship is found between bank size and growth for France, Germany and
 the UK. This suggests a process of increasing concentration in these
 banking systems, even in the absence of bank specific strategic
 advantages. Small banks tend to have more variable growth rates than their
 larger counterparts. This suggests that large banks may enjoy advantages
 associated with diversified operations, which make them less susceptible
 to periods of extremely high or low growth. 
Journal: Applied Economics 
Pages: 1101-1109 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404245 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404245 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1101-1109




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Andrikopoulos 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Andrikopoulos 
Author-Name: John Loizides 
Author-X-Name-First: John 
Author-X-Name-Last: Loizides 
Title: The demand for home-produced and imported alcoholic beverages in Cyprus: the AIDS approach 
Abstract:
  The purpose of this paper is to investigate the demand and its
 composition between home-produced and imported for alcoholic beverages in
 Cyprus. The methodological approach used is the Almost Ideal Demand System
 (AIDS), both in static and dynamic terms. Empirically, the AIDS, both in
 its static and dynamic version, was estimated using time-series
 (1970-1992) for three sets of data which include: (1) alcoholic beverages
 (wine-beer-other brandies) broken down between home-produced and imported
 (model A); (2) alcoholic beverages only without disaggregation between
 home-produced and imported (model B), and (3) aggregate alcoholic
 beverages (wine-beer-other brandies) and food (model C). Zellner's
 iterative estimation procedure was used for estimating the model. The
 empirical findings: (1) strongly support the dynamic version of the AIDS
 over its static alternative; and (2) provide certain guidelines concerning
 economic policies relating to an increase in government revenues and
 changing the composition between home-produced and imported consumption of
 alcoholic beverages. These basic findings could be considered relevant to
 the policy makers in the light of Cyprus' accession to the EU. 
Journal: Applied Economics 
Pages: 1111-1119 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404254 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404254 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1111-1119




Template-Type: ReDIF-Article 1.0
Author-Name: David Leece 
Author-X-Name-First: David 
Author-X-Name-Last: Leece 
Title: Choice of mortgage instrument, liquidity constraints and the demand for housing debt in the UK 
Abstract:
  The research uses microdata to estimate reduced form mortgage demand
 equations based on truncated regressions, dissagregated by choice of
 mortgage instrument. The choice is between a standard annuity mortgage and
 a balloon type mortgage (the endowment). The estimates are used to
 indicate the differential impact of credit market rationing and financial
 liberalization on households. The results indicate significant variations
 in mortgage demand by choice of mortgage instrument. Econometric testing
 demonstrates that the choice between an endowment and a repayment mortgage
 can be used as an exogenous indicator of liquidity and portfolio positions
 and different user costs of owner occupation. 
Journal: Applied Economics 
Pages: 1121-1132 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404263 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404263 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1121-1132




Template-Type: ReDIF-Article 1.0
Author-Name: Allan Layton 
Author-X-Name-First: Allan 
Author-X-Name-Last: Layton 
Author-Name: Daniel Smith 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Smith 
Title: A further note on the three phases of the US business cycle 
Abstract:
  Using a number of alternative approaches, Sichel (1994) demonstrated
 evidence supporting the notion that the US business cycle is best
 characterized as having three distinct phases, viz. contraction, followed
 by rapid expansion during the early stages of the recovery phase, followed
 by a period of more normal expansionary growth, with the cycle then
 repeating itself. This contrasts with the more usual
 expansion/contraction, two phase characterization but is more in keeping
 with the original notion of the business cycle as conceived by Burns and
 Mitchell (1946). Here an alternative approach is employed for shedding
 light on this issue. Following the original suggestion of Hamilton (1989,
 1990, 1991), a simple nonlinear, three phase, regime switching Markov
 model is compared against its simpler two phase version to determine which
 version is statistically more consistent with the business cycle
 historical evidence. The evidence seems to clearly support the three phase
 characterization and that this characterization yields interesting
 information on business cycle dynamics which is necessarily missed by the
 two phase model formulation. 
Journal: Applied Economics 
Pages: 1133-1143 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404272 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404272 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1133-1143




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dobson 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Dobson 
Author-Name: Bill Gerrard 
Author-X-Name-First: Bill 
Author-X-Name-Last: Gerrard 
Author-Name: Simon Howe 
Author-X-Name-First: Simon 
Author-X-Name-Last: Howe 
Title: The determination of transfer fees in English nonleague football 
Abstract:
  In recent years a number of studies have analysed the player transfer
 market in English professional football. This paper examines whether
 similar factors operate to determine transfer fees in the
 semiprofessional, or nonleague, game. An empirical model of the nonleague
 player transfer market is developed in which observed transfer fees are
 determined by player characteristics, time effects, selling-club
 characteristics and buying-club characteristics. Using data on 114
 transfer fees covering the period 1988 to 1997, we find evidence that the
 data generating process for transfer fees is broadly similar in both
 professional and nonleague football. 
Journal: Applied Economics 
Pages: 1145-1152 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404281 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404281 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1145-1152




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Conrad 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Conrad 
Title: An econometric model of production with endogenous improvement in energy efficiency, 1970-1995 
Abstract:
  The purpose of this paper is to introduce a modification of a standard
 four input production process where energy is used in an inefficient way
 due partly to unnecessary waste of energy. In this production process, R&D
 investment is an additional input in order to improve energy efficiency.
 It closes the gap between energy purchased and energy used effectively.
 The more is invested, the less is the waste of energy. With the cost and
 benefit of R&D investment incorporated in our model of the firm, we
 analyse the impact of an energy tax on R&D effort, on output and on the
 waste of energy. The model is implemented empirically by choosing a
 translog cost function and a set of first-order conditions, using data for
 the German chemical industry, 1970-1995. In a simulation study based on
 higher energy prices we found outsourcing as the consequent reaction of
 the firm- more material is used and less of energy, labour, and capital,
 given the unchanged output level. There is no indication of a double
 dividend in terms of environmental improvement as well as higher demand
 for labour on the industry level calling for a computable general
 equilibrium approach in order to answer this open question. 
Journal: Applied Economics 
Pages: 1153-1160 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404290 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404290 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1153-1160




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Gripaios 
Author-X-Name-First: Peter 
Author-X-Name-Last: Gripaios 
Author-Name: Paul Bishop 
Author-X-Name-First: Paul 
Author-X-Name-Last: Bishop 
Author-Name: Sarah Keast 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Keast 
Title: Differences in GDP per head in GB counties: some suggested explanations 
Abstract:
  This paper examines the evidence concerning the convergence of gross
 domestic product (GDP) per head across GB counties during 1977-1995. In
 general, the evidence rejects the hypothesis of convergence although there
 is some evidence of a north-south divide with &#x3b3; convergence in the
 north in the 1990s. Cross-section results suggest that variation in GDP
 per head may be related to different economic activity rates and some
 aspects of industrial structure. 
Journal: Applied Economics 
Pages: 1161-1167 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404308 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404308 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1161-1167




Template-Type: ReDIF-Article 1.0
Author-Name: Guzin Erlat 
Author-X-Name-First: Guzin 
Author-X-Name-Last: Erlat 
Title: Measuring the impact of trade flows on employment in the Turkish manufacturing industry 
Abstract:
  This paper investigates the impact of export and import flows on the
 change in manufacturing employment using an accounting-identity based
 approach which enables the change in employment to be decomposed into the
 contribution made not only by trade but also by domestic consumption and
 productivity change. The analysis is carried over (i) four subperiods, two
 belonging to the period before 1980 when Turkey switched from a regime of
 import-substitution based growth to one of export-orientation, and the
 other two, to the period after 1980, and (ii) three tradebased categories;
 net exporting, import competing and noncompeting sectors. It is found (a)
 that trade has a more significant role to play in employment change in the
 post-1980 periods, (b) that this is observed more in the net exporting and
 noncompeting categories rather than the import competing category, and (c)
 that the switch to export-oriented growth in 1980 did not lead to
 export-based employment to be dominant in employment changes but has acted
 as a buffer in the sense that employment may either have grown much less
 or declined more severely if the post-1980 expansion of exports had not
 occurred. 
Journal: Applied Economics 
Pages: 1169-1180 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404317 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404317 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1169-1180




Template-Type: ReDIF-Article 1.0
Author-Name: Farrokh Nourzad 
Author-X-Name-First: Farrokh 
Author-X-Name-Last: Nourzad 
Title: The productivity effect of government capital in developing and industrialized countries 
Abstract:
  This paper uses an aggregate production function to examine the effect of
 government capital formation on growth of labour productivity in an annual
 panel of 12 developing and 12 OECD economies covering the period
 1976-1989. The results from a pooled model of all 24 countries indicate
 that contribution of government capital to labour productivity is positive
 and statistically significant. This result also holds in separate samples
 of the industrialized and developing economies where we find that, while
 there are productivity differentials between the two types of economies
 with respect to private capital, there are no differences with regards to
 public capital. 
Journal: Applied Economics 
Pages: 1181-1187 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404326 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404326 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1181-1187




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: Kent Lanclos 
Author-X-Name-First: Kent 
Author-X-Name-Last: Lanclos 
Title: Trade in imperfectly competitive industries: the role of market size and consumer preferences 
Abstract:
  This study presents theoretical and empirical analyses of market size and
 consumer preference asymmetries to examine the implications of trade and
 trade policies for imperfectively competitive food manufacturing sectors.
 The results show that the effects of trade reforms on imperfectly
 competitive product trade are counter intuitive if a significant portion
 of food trade is attributed to market size and preference asymmetries. For
 example, countries with smaller market gain relatively more from trade
 liberalization than countries with larger markets because export market
 opportunities are greater for small countries than for large countries. 
Journal: Applied Economics 
Pages: 1189-1200 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404335 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404335 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1189-1200




Template-Type: ReDIF-Article 1.0
Author-Name: Sean Ennis 
Author-X-Name-First: Sean 
Author-X-Name-Last: Ennis 
Author-Name: Michael Schoenbaum 
Author-X-Name-First: Michael 
Author-X-Name-Last: Schoenbaum 
Author-Name: Theodore Keeler 
Author-X-Name-First: Theodore 
Author-X-Name-Last: Keeler 
Title: Optimal prices and costs for hospitals with excess bed capacity 
Abstract:
  This paper analyses theoretically and empirically issues in optimal
 pricing with excess hospital capacity, and then applies the analysis to
 the issue as to whether Medicare and Medicaid payments cover the marginal
 costs of treating patients of each type. The primary innovation of this
 paper lies in incorporating appropriate theoretical measures of hospital
 excess capacity to a multiproduct empirical hospital cost function, and in
 showing how proper measures of marginal cost can be applied to the
 examples of Medicare and Medicaid reimbursement in California. With a
 standard translog specification that ignores hospital excess capacity, the
 estimated marginal costs of Medicare and Medicaid patients are higher than
 the reimbursement. However, correctly incorporating excess capacity into
 our model leads to considerably lower estimates of short-run marginal
 costs, suggesting that Medicare hospital reimbursement is more than
 adequate in the short run. We also develop a third marginal cost concept,
 that of what long-run marginal costs would be ifexcess capacity were
 eliminated. This is the most theoretically appropriate measure of optimum
 long-run reimbursement; Medicare reimbursement also covers this measure of
 costs. The extent to which Medicare reimbursement covers costs thus
 depends crucially on whether capacity is assumed fixed or variable.
 Similar examples are presented for Medicaid. 
Journal: Applied Economics 
Pages: 1201-1212 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404344 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404344 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1201-1212




Template-Type: ReDIF-Article 1.0
Author-Name: Hao-Yen Yang 
Author-X-Name-First: Hao-Yen 
Author-X-Name-Last: Yang 
Title: Carbon-reducing taxes and income inequality: general equilibrium evaluation of alternative energy taxation in Taiwan 
Abstract:
  Recently, several studies have been a detailed evaluation of the economic
 implications of energy taxation as a policy instrument to conserve energy
 and reduce carbon emissions. However, little attention has been devoted to
 inquiring about the economic implications of energy taxation in the newly
 industrialized countries (the so-called NICs). In this paper, we use a
 multisector, multihousehold computable general equilibrium model to assess
 the distributional effects of alternative energy taxation on the Taiwan
 economy. The counterfactual simulation technique is applied to investigate
 the income distribution implications of: (1) an increase in the import
 taxes of crude oil; and (2) an increase in the excise taxes of petroleum
 products. Our empirical results basing on Taiwan's data show that both
 energy taxes increase government revenue and the Gini coefficient, but
 reduce net value-added, private consumption, disposable income and
 equivalent variation. A raise in the Gini coefficient implies that there
 is a worsening in the distribution of income. The lowest income group
 suffers relatively large welfare and income loss, but the highest income
 group suffers a relatively small welfare and income loss. The
 distributional effects differ from household to household depending on the
 composition of their total consumption and the source of their factor
 income. Our findings reveal that the energy tax appears to be mildly
 regressive, there are broadly consistent with those cases of developed
 countries reported in previous studies. 
Journal: Applied Economics 
Pages: 1213-1221 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1213-1221




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Archibald 
Author-X-Name-First: Robert 
Author-X-Name-Last: Archibald 
Author-Name: David Feldman 
Author-X-Name-First: David 
Author-X-Name-Last: Feldman 
Author-Name: Marc Hayford 
Author-X-Name-First: Marc 
Author-X-Name-Last: Hayford 
Author-Name: Carl Pasurka 
Author-X-Name-First: Carl 
Author-X-Name-Last: Pasurka 
Title: Effective rates of protection and the Fordney-McCumber and Smoot-Hawley Tariff Acts: comment and revised estimates 
Abstract:
  This paper provides corrected calculations of the effective rate of
 protection for a wide disaggregation of US industries under the two
 important interwar tariff regimes. 
Journal: Applied Economics 
Pages: 1223-1226 
Issue: 9 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404362 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404362 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1223-1226




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Fix 
Author-X-Name-First: Peter 
Author-X-Name-Last: Fix 
Author-Name: John Loomis 
Author-X-Name-First: John 
Author-X-Name-Last: Loomis 
Author-Name: Rick Eichhorn 
Author-X-Name-First: Rick 
Author-X-Name-Last: Eichhorn 
Title: Endogenously chosen travel costs and the travel cost model: an application to mountain biking at Moab, Utah 
Abstract:
  The travel cost model is frequently used to estimate net willingness to
 pay for recreation at remote sites by using the visitor's travel costs as
 a proxy for the price of recreation. However, some concern has been raised
 over the validity of using the visitor's stated travel costs as a proxy
 for price. This paper addresses some of these concerns, by examining the
 possible over-estimation of consumer surplus due to endogenously chosen
 travel costs. This paper extends past theoretical work for the linear
 model by developing a correction for endogenously chosen travel costs in
 more commonly used nonlinear models such as the Poisson or count data
 model. Also provided is the first empirical test of the presence of
 endogeneity and an estimate of the magnitude of the error from ignoring
 endogeneity in travel costs. After applying this test and the correction
 to data that was gathered for mountain biking at Moab, Utah the estimate
 of consumer surplus falls from US $153 to US $135, which is a 12%
 reduction. 
Journal: Applied Economics 
Pages: 1227-1231 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404371 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404371 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1227-1231




Template-Type: ReDIF-Article 1.0
Author-Name: Kurt Kratena 
Author-X-Name-First: Kurt 
Author-X-Name-Last: Kratena 
Title: Sectoral shifts and unemployment persistence 
Abstract:
  This paper deals with possible explanations of unemployment persistence
 within a sectoral approach to the Austrian labour market. First the
 concept of unemployment persistence is specified in terms of the time
 series properties of the unemployment rate. Sectoral job gains and job
 losses form the labour market flows in this approach. The standard
 matching model is replaced then by a model of the competition between the
 unemployed and new entrants in the labour market for new jobs as an
 'adding up' demand system of the AIDS type. The estimations of different
 system specifications indicate, that the sectoral structure of job gains
 plays a role in the competition mechanism between unemployed workers and
 new entrants. 
Journal: Applied Economics 
Pages: 1233-1240 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404380 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404380 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1233-1240




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Huttin 
Author-X-Name-First: Christine 
Author-X-Name-Last: Huttin 
Title: A cluster analysis on income elasticity variations and US pharmaceutical expenditures 
Abstract:
  This paper examines the relationship between household income and
 outpatient prescribed medicines in the USA based on a sample of 2872
 privately insured patients, from the 1987 NMES data set. The analysis is
 performed on regional typologies of different socioeconomic profiles of
 patients. Only a few groups show positive income elasticity. 
Journal: Applied Economics 
Pages: 1241-1247 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404399 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404399 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1241-1247




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Martin-Marcos 
Author-X-Name-First: Ana 
Author-X-Name-Last: Martin-Marcos 
Author-Name: Cristina Suarez-Galvez 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Suarez-Galvez 
Title: Technical efficiency of Spanish manufacturing firms: a panel data approach 
Abstract:
  This paper estimates the levels of technical efficiency reached by
 Spanish manufacturing firms, through an econometric estimation of frontier
 production functions for fifteen sectors of activity, and also, obtains
 other relevant technological measurements of these productive processes
 such as the scale and the technical progress parameters. The methodology
 used is the panel data methods (Schmidt and Sickles, 1984). The
 statistical source is provided by the Survey on Business Strategies
 (Encuesta Sobre Estrategias Empresariales), a panel of data covering 855
 Spanish manufacturing firms observed over the period 1990-1994. Our
 econometric results confirm the great heterogeneity in the firms'
 efficiency, the predominance of constant returns to scale and the great
 rate of technological progress. 
Journal: Applied Economics 
Pages: 1249-1258 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404407 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404407 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1249-1258




Template-Type: ReDIF-Article 1.0
Author-Name: James Love 
Author-X-Name-First: James 
Author-X-Name-Last: Love 
Author-Name: Francisco Lage-Hidalgo 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Lage-Hidalgo 
Title: Analysing the determinants of US direct investment in Mexico 
Abstract:
  In this paper a simple model of foreign direct investment is developed
 and tested on investment flows from the USA to Mexico between 1967 and
 1994 using cointegration analysis. Domestic demand and relative factor
 costs are found to influence direct investment flows, suggesting support
 for both the 'cheap labour' and 'market size' hypotheses. The short-run
 dynamics of the model indicate that exchange rate movements have an effect
 on the timing of the investment decision. 
Journal: Applied Economics 
Pages: 1259-1267 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404416 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404416 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1259-1267




Template-Type: ReDIF-Article 1.0
Author-Name: Nandinee Kutty 
Author-X-Name-First: Nandinee 
Author-X-Name-Last: Kutty 
Title: The production of functionality by the elderly: a household production function approach 
Abstract:
  This paper extends Becker's model of the household production function of
 human capital to the production of elderly functionality. In this model,
 elderly functionality is produced with the direct inputs of assistive
 devices, personal assistance, and nutritional intake. Education, endowment
 variables (like genetic endowment and sex) and health conditions (like
 stroke) determine the production function environment. Data from the
 Survey of Asset and Health Dynamics Among the Oldest-Old (AHEAD) are used
 to estimate a production function of bathing functionality, using a
 two-stage estimation procedure. In the first stage, input demands for the
 endogenous functionality inputs are estimated, recognizing health
 heterogeneity. The results suggest that reverses in functionality caused
 by age and health conditions can be partially compensated for by the use
 of assistive devices (like grab bars and bathing equipment), secure
 nutritional intake, and moderate alcohol consumption. However, non-inputs
 like chronic health conditions, age, sex and genetic endowment exert a
 strong influence on the level of functionality. 
Journal: Applied Economics 
Pages: 1269-1280 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404425 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404425 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1269-1280




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Tiffin 
Author-X-Name-First: Richard 
Author-X-Name-Last: Tiffin 
Author-Name: P. J. Dawson 
Author-X-Name-First: P. J. 
Author-X-Name-Last: Dawson 
Title: Structural breaks, cointegration and the farm-retail price spread for lamb 
Abstract:
  This paper examines the farm&#x2014;retail price spread for lamb from
 monthly UK data for 1979-1993. Using cointegration, it examines seasonal
 patterns in producer and retail prices and seeks to identify a long-run
 relationship between them. Results show that a long-run relationship
 exists, and that the direction of Granger-causality is from retail to
 producer prices. Lamb prices are therefore set in the retail market.
 Results also show that there is a structural break in the relationship in
 January 1990 when the price increases; this coincides exactly with a
 change in policy. 
Journal: Applied Economics 
Pages: 1281-1286 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404434 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404434 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1281-1286




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Scott 
Author-X-Name-First: Peter 
Author-X-Name-Last: Scott 
Author-Name: Guy Judge 
Author-X-Name-First: Guy 
Author-X-Name-Last: Judge 
Title: Cycles and steps in British commercial property values 
Abstract:
  This paper examines cyclical behaviour in commercial property values over
 the period 1956 to 1996, using a structural times series (unobserved
 components) approach. The influence of the transition to short rent
 reviews during the late 1960s and the short and long-term impacts of the
 1974 and 1990 property crashes are also incorporated into the analysis,
 via dummy variables. It is found that once these variables are taken into
 account a fairly regular cyclical pattern can be discerned, with a period
 of about 7.8 years. Furthermore, the 1974 and 1990 property crashes are
 shown to have had a major long-term impact on property value growth
 (presumably via their influence on investors' expectations). 
Journal: Applied Economics 
Pages: 1287-1297 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404443 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404443 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1287-1297




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Gausden 
Author-X-Name-First: Robert 
Author-X-Name-Last: Gausden 
Author-Name: Ian Alan Whitfield 
Author-X-Name-First: Ian Alan 
Author-X-Name-Last: Whitfield 
Title: Testing the stochastic implications of the life cycle-permanent income hypothesis using UK regional time-series data 
Abstract:
  This paper applies exclusion tests of the pure life
 cycle&#x2014;permanent income hypothesis (LCPIH) to time-series data on
 each of the eleven standard regions of the UK. Data are annual and extend
 from 1975 to 1994. The results obtained suggest that there are
 considerable differences in consumption behaviour across the regions.
 Theory has indicated that a departure of consumption behaviour from that
 predicted by the LCPIH can occur because of a change in unemployment.
 Consequently, a comparison is undertaken of the empirical results obtained
 for the eleven regions and the respective unemployment movements.
 Following this comparison, it is possible to conclude that the contrasting
 unemployment experiences of the regions of the UK have contributed
 significantly to, yet cannot account for fully, the observed differences
 in consumption behaviour. 
Journal: Applied Economics 
Pages: 1299-1310 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404452 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404452 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1299-1310




Template-Type: ReDIF-Article 1.0
Author-Name: James Alleman 
Author-X-Name-First: James 
Author-X-Name-Last: Alleman 
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Scott Savage 
Author-X-Name-First: Scott 
Author-X-Name-Last: Savage 
Title: Trade imbalance in international message telephone services 
Abstract:
  An econometric model is estimated to identify determinants of trade
 imbalance in international message telephone services markets. Results
 indicate that asymmetric market structure is important in explaining
 bilateral market imbalances for high income country pairs. For low and
 high income country pairs, GDP per capita is the dominant cause of traffic
 imbalances. The findings suggest that telecommunications liberalization
 policies are effective in reducing distortions in international traffic
 flows and settlement payments. However, liberalization should be
 accompanied by developmental programmes that enhance income per capita and
 telecommunications network investment in developing countries. Such
 programmes may be effective in providing a more equitable distribution of
 the gains from telecommunications reform across countries. 
Journal: Applied Economics 
Pages: 1311-1321 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404461 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404461 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1311-1321




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Abutaleb 
Author-X-Name-First: Ahmed 
Author-X-Name-Last: Abutaleb 
Author-Name: Michael Papaioannou 
Author-X-Name-First: Michael 
Author-X-Name-Last: Papaioannou 
Title: Maximum likelihood estimation of time-varying parameters: an application to the Athens Stock Exchange index 
Abstract:
  The problem of maximum likelihood estimation of time-varying parameters
 is considered. A hierarchical approach is proposed that involves, first,
 the estimation of the model order and parameters when they are assumed
 time-invariant. Second, for each parameter, an autoregressive (AR) model,
 with constant coefficients, is developed. This allows the parameters to
 change over time. Finally, the estimates of the AR coefficients for each
 parameter are used as initial conditions to a time-varying model with AR
 coefficients, which are allowed to change over time subject to some
 regularity constraints. This approach is then applied to the Athens Stock
 Exchange index, where the dominant forces affecting this index are
 analysed. 
Journal: Applied Economics 
Pages: 1323-1328 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404470 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404470 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1323-1328




Template-Type: ReDIF-Article 1.0
Author-Name: Pinuccia Calia 
Author-X-Name-First: Pinuccia 
Author-X-Name-Last: Calia 
Author-Name: Elisabetta Strazzera 
Author-X-Name-First: Elisabetta 
Author-X-Name-Last: Strazzera 
Title: Bias and efficiency of single versus double bound models for contingent valuation studies: a Monte Carlo analysis 
Abstract:
  The dichotomous choice contingent valuation method can be used either in
 the single or double bound formulation. The former is easier to implement,
 while the latter is known to be more efficient. We analyse the bias of the
 ML estimates produced by either model, and the gain in efficiency
 associated to the double bound model, in different experimental settings.
 We find that there are no relevant differences in point estimates given by
 the two models, even for small sample size. The greater efficiency of the
 double bound is confirmed, although differences tend to reduce by
 increasing the sample size. Provided that a reliable pretest is conducted,
 and the sample size is large, use of the single rather than the double
 bound model is warranted. 
Journal: Applied Economics 
Pages: 1329-1336 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404489 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404489 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1329-1336




Template-Type: ReDIF-Article 1.0
Author-Name: Quentin Wodon 
Author-X-Name-First: Quentin 
Author-X-Name-Last: Wodon 
Title: Microdeterminants of consumption, poverty, growth, and inequality in Bangladesh 
Abstract:
  Using in a consistent way the household level data of five successive
 national surveys, this paper analyses at once the microdeterminants (and
 changes thereof) of consumption, poverty, growth, and inequality in
 Bangladesh from 1983 to 1996. Education, demographics, land ownership,
 occupation, and geographic location all affect consumption and poverty.
 The gains in per capita consumption associated with many of these
 household characteristics tend to be stable over time. Demographics have
 had the largest impact on growth. Education (in urban areas) and land (in
 rural areas) contribute the most to measures of conditional between group
 inequality, a new concept introduced in the paper to avoid the pitfalls of
 traditional group decompositions of the Gini index, followed by location
 in both sectors. 
Journal: Applied Economics 
Pages: 1337-1352 
Issue: 10 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400404498 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404498 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1337-1352




Template-Type: ReDIF-Article 1.0
Author-Name: Tim Kuypers 
Author-X-Name-First: Tim 
Author-X-Name-Last: Kuypers 
Title: Information and efficiency: an empirical study of a fixed odds betting market 
Abstract:
  The efficiency of the fixed odds betting market for football in England
 is investigated. It is the efficiency of how market participants utilize
 available information that is tested. A model of bookmaker behaviour is
 presented in which the bookmaker maximizes their expected share of the
 total amount bet. It is found that an expected profit maximizing bookmaker
 could set market inefficient odds. Several empirical tests using the
 ordered probit model with data on prices and publicly available
 information are carried out. Evidence of market inefficiency is identified
 offering profitable betting opportunities. 
Journal: Applied Economics 
Pages: 1353-1363 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151449 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151449 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1353-1363




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Kargbo 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Kargbo 
Title: Impacts of monetary and macroeconomic factors on food prices in eastern and southern Africa 
Abstract:
  Eastern and southern Africa has been experiencing relatively large
 increases in real food prices since the early 1980s. Real food prices in
 some African countries grew as much as 11% per year during the 1980-1996
 period. The huge volatility in food prices coincided with the
 implementation of structural adjustment programmes in several African
 countries. This study examines the impacts of monetary and macroeconomic
 factors on real food prices in eastern and southern Africa. Using the
 technique of cointegration and error correction modelling to test the
 long-run relationship between real food prices and the factors that
 influence their behaviour in selected African countries. Demand
 elasticities for food are estimated for selected countries. The empirical
 results show that changes in domestic food production, coupled with
 income, trade, exchange rate and monetary policies have significant
 impacts on real food prices, with wide implications for food availability
 and food security in the region. 
Journal: Applied Economics 
Pages: 1373-1389 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151467 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151467 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1373-1389




Template-Type: ReDIF-Article 1.0
Author-Name: Tomokazu Arita 
Author-X-Name-First: Tomokazu 
Author-X-Name-Last: Arita 
Author-Name: Philip McCann 
Author-X-Name-First: Philip 
Author-X-Name-Last: McCann 
Title: Industrial alliances and firm location behaviour: some evidence from the US semiconductor industry 
Abstract:
  This study uses a log-linear model in order to analyse data on interfirm
 strategic alliances within the US semiconductor industry. The findings
 suggest that although the finding that the intensity of information
 transaction between firms is directly associated with geographical
 proximity, this effect is much less localized than would be usually
 expected. The results cast doubt on much of the existing qualitative
 literature on the nature of agglomeration externalities. 
Journal: Applied Economics 
Pages: 1391-1403 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151476 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151476 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1391-1403




Template-Type: ReDIF-Article 1.0
Author-Name: Noelle Doss 
Author-X-Name-First: Noelle 
Author-X-Name-Last: Doss 
Author-Name: Helen Cabalu 
Author-X-Name-First: Helen 
Author-X-Name-Last: Cabalu 
Title: When east meets south: economic gains from India-APEC trade 
Abstract:
  As India, potentially one of the largest economies in the world, seeks
 membership to the Asia Pacific Economic Cooperation forum (APEC), a case
 for its inclusion in an expanded APEC is examined. The methodology and
 empirical design as developed in Marwah and Klein (1995) within the
 framework of a world trade matrix consists of seven regions divided into
 India, components of APEC, and the rest of the world. The growth of
 economic cohesiveness within APEC between 1965 and 1995 is quantitatively
 assessed by patterns of trade linkages through measures of bilateral
 reciprocity, multilateralism, and market diversification. Entropy indexes
 of the trade matrix are computed and used in the analysis. Since 1991,
 when massive economic reforms were implemented, India has experienced
 strong growth in exports and in imports, a departure from its previous
 performance. Furthermore, its external orientation has shifted positively
 and significantly since the reforms. Despite this, during the latest five
 years, India's integration with APEC hadn't changed to a level of
 statistical significance. The case for an expanded APEC, including India,
 is still somewhat prospective but the evidence is growing that it could
 prove beneficial to all the member countries. For India to benefit in this
 expanded APEC, it should continue to press its case for inclusion in the
 Asia Pacific Economic Cooperation forum (APEC). 
Journal: Applied Economics 
Pages: 1405-1418 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151485 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151485 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1405-1418




Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton 
Author-X-Name-First: James 
Author-X-Name-Last: Thornton 
Title: Physician choice of medical specialty: do economic incentives matter? 
Abstract:
  In this paper, a probabilistic discrete choice approach is used to
 examine the influence of economic and non-economic factors on the choice
 of medical specialty by new physicians. A two level nested logit model is
 estimated that relaxes the independence from irrelevant alternatives
 assumption, and allows for a potentially more realistic pattern of
 substitution across specialty choices. The results from this specification
 are compared to those obtained from joint and conditional logit models.
 The findings, which are relatively robust across models, indicate that
 economic incentives play an important role in the specialty choice
 process, in particular, expected hours worked and medical school
 indebtedness. Physician tastes for specialties also appear to have an
 important influence. 
Journal: Applied Economics 
Pages: 1419-1428 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151494 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151494 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1419-1428




Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Meliciani 
Author-X-Name-First: Valentina 
Author-X-Name-Last: Meliciani 
Title: The relationship between R&D, investment and patents: a panel data analysis 
Abstract:
  This paper estimates the effect of research and investment activities on
 patents across countries, industries and over time, using Poisson and
 negative binomial distribution models. The first result of the paper is
 the recognition of the importance of investment activities in contributing
 to technical change. The positive role of research expenditures is also
 confirmed but its elasticity is found to be lower than in previous
 studies. Important differences across sectors emerge: research
 expenditures are found to be more effective in generating patents in
 science based industries, while investment is particularly significant in
 supplier dominated and production intensive industries. Finally, in most
 sectors, the estimated R&D and investment coefficients lie outside the
 confidence intervals calculated around the pooled coefficients. 
Journal: Applied Economics 
Pages: 1429-1437 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151502 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151502 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1429-1437




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Carruth 
Author-X-Name-First: Alan 
Author-X-Name-Last: Carruth 
Author-Name: Jose Roberto Sanchez-Fung 
Author-X-Name-First: Jose Roberto 
Author-X-Name-Last: Sanchez-Fung 
Title: Money demand in the Dominican Republic 
Abstract:
  This paper investigates a demand for money relationship for the Dominican
 Republic. The financial system of the Dominican Republic is
 underdeveloped, and there are no suitable domestic data on the opportunity
 cost of holding money. Economic links with the USA suggest a possible role
 for a foreign interest rate effect and a currency substitution effect in
 the demand for domestic money. A long-run demand for money relationship is
 developed from the perspective of alternative estimation methodologies,
 and it is shown that a 'literature standard' specification augmented by
 foreign monetary variables is robust. The ensuing short-run dynamic model
 is adequate, stable and suggests an important role for expected inflation,
 and a real bilateral exchange rate with the USA. A number of policy
 implications for the Dominican Republic are drawn from the results. 
Journal: Applied Economics 
Pages: 1439-1449 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151511 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151511 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1439-1449




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Boardman 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Boardman 
Author-Name: Claude Laurin 
Author-X-Name-First: Claude 
Author-X-Name-Last: Laurin 
Title: Factors affecting the stock price performance of share issued privatizations 
Abstract:
  Shareholders in many share issued privatizations (SIPs) have enjoyed
 substantial increases in the value of their investments. This study
 examines the factors that influence the long-run stock price performance
 of an international sample of SIPs, focusing on three-year buy and hold
 returns. After controlling for market-wide changes in stock prices, one
 finds that the relative size of the company has a negative effect on stock
 price performance, retained government ownership has a positive effect,
 the presence of a golden share has a negative effect, initial underpricing
 has a positive effect, and the timing of the privatization has no effect.
 Performance also depends on the industry and home country. 
Journal: Applied Economics 
Pages: 1451-1464 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151520 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151520 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1451-1464




Template-Type: ReDIF-Article 1.0
Author-Name: Indira Kadyrkanova 
Author-X-Name-First: Indira 
Author-X-Name-Last: Kadyrkanova 
Author-Name: David Bessler 
Author-X-Name-First: David 
Author-X-Name-Last: Bessler 
Author-Name: John Nichols 
Author-X-Name-First: John 
Author-X-Name-Last: Nichols 
Title: On milk prices in Kyrgyzstan 
Abstract:
  Dynamic relationships among weekly retail prices for milk from three
 regions of Kyrgyzstan are studied in an error correction framework.
 Observational data over the period January 1995 - May 1999 are used in the
 analysis. Results show that prices from the oblasts of Issyk-Kul and
 Djalal-Abad form one long-run cointegration relationship, with prices from
 Issyk-Kul exhibiting the property of weak exogeneity. Prices from the Osh
 oblast are not part of this relationship. These results are related to the
 levels of state-run milk marketing facilities versus private-run milk
 marketing facilities and surplus versus deficit milk production in each
 region. 
Journal: Applied Economics 
Pages: 1465-1473 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151539 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151539 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1465-1473




Template-Type: ReDIF-Article 1.0
Author-Name: Efthymios Tsionas 
Author-X-Name-First: Efthymios 
Author-X-Name-Last: Tsionas 
Title: Real convergence in Europe. How robust are econometric inferences? 
Abstract:
  The paper examines the convergence properties of productivity in fifteen
 European countries over the period 1960-1997. European productivity is
 estimated using modified translog production systems with a completely
 general intertemporal structure. To capture the notion that trade may have
 an influence on aggregate convergence, imports are included in the
 production function. Stationarity tests are used to test for convergence
 around a common long-run trend, including unit root tests, the KPSS and
 Bayesian tests, as well as testing based on fractional differencing
 parameter estimation for long memory models. It is found that convergence
 inferences are sensitive to the type of test employed. 
Journal: Applied Economics 
Pages: 1475-1482 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151548 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151548 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1475-1482




Template-Type: ReDIF-Article 1.0
Author-Name: Pooran Lall 
Author-X-Name-First: Pooran 
Author-X-Name-Last: Lall 
Author-Name: Allen Featherstone 
Author-X-Name-First: Allen 
Author-X-Name-Last: Featherstone 
Author-Name: David Norman 
Author-X-Name-First: David 
Author-X-Name-Last: Norman 
Title: Productive efficiency and growth policies for the Caribbean 
Abstract:
  Productive (economic) efficiency and factors affecting it was evaluated
 in the Caribbean between 1983 to 1992. Results from non-parametric
 programming indicated that efficiency (i.e. pure technical, allocative and
 economic) measures were lower and more variable in Caribbean than in other
 Western Hemisphere countries (i.e. North America and Latin America). Tobit
 regression analysis indicated higher levels of private and foreign
 investments, productive infrastructure, credit availability, education
 level, and consumption of domestically produced goods had positive impacts
 on the efficiency measures. On the other hand, higher levels of public
 expenditure, income tax, and export taxes, and higher inflation rates had
 negative effects. These results support the current trend towards
 advocating more open economies (i.e. letting the free market work) and
 encouraging governments to confine their functions to
 facilitative/regulatory type roles and to undertaking tasks that are not
 generally undertaken by the private sector (e.g. developing
 infrastructure, providing education). Although, generally, the same
 factors were associated with efficiency in the Caribbean and Latin
 America, their relative impacts differed. Consequently, in order to
 improve efficiency in the Caribbean countries, relatively greater emphasis
 should be placed on encouraging foreign and private investment and
 developing infrastructure than would be the case in Latin American
 countries. 
Journal: Applied Economics 
Pages: 1483-1493 
Issue: 11 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050151557 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151557 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1483-1493




Template-Type: ReDIF-Article 1.0
Author-Name: William Putsis 
Author-X-Name-First: William 
Author-X-Name-Last: Putsis 
Author-Name: Subrata Sen 
Author-X-Name-First: Subrata 
Author-X-Name-Last: Sen 
Title: Should NFL blackouts be banned? 
Abstract:
  In this paper, the authors examine the economic and policy implications
 of the National Football League (NFL) 'blackout rule,' a league rule that
 prohibits local television broadcast of games that are not sold out at
 least 72 hours prior to game time. The foundation for understanding and
 assessing the impact of the blackout rule is an analysis of attendance
 using data on games during the 1996-1997 National Football League season.
 Expanding on previous research, three separate components of attendance
 (season ticket sales, game day ticket sales, and game day noshows) are
 examined in detail. Accounting for the endogeneity of key variables, Tobit
 and Probit analyses are used to estimate and predict individual game
 attendance. These empirical estimates are then used as a vehicle to assess
 the implications of game day blackouts and the potential for public policy
 intervention. More specifically, the authors begin by estimating the
 impact of the blackout on game day attendance. Using these estimates, they
 assess the implications of imposing a local blackout for individual team
 revenues. The gain in on-site stadium revenue due to the blackout (e.g.,
 through additional ticket and concession sales) are then viewed in the
 broader context of the societal loss due to the game not being broadcast
 in the local area. The empirical results suggest that the gain in team
 revenue is small in comparison to the loss of viewership rights. This
 suggests that public policy intervention may be possible that would result
 in a Pareto superior market outcome. The paper concludes by exploring
 possible intervention strategies. 
Journal: Applied Economics 
Pages: 1495-1507 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418907 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418907 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1495-1507




Template-Type: ReDIF-Article 1.0
Author-Name: Sang-Kuck Chung 
Author-X-Name-First: Sang-Kuck 
Author-X-Name-Last: Chung 
Title: Asymptotics of trend stationary fractionally integrated ARMA models 
Abstract:
  The main contribution of this study is to provide asymptotic results for
 MLE applied to the trend stationary ARFIMA model and to implement a
 detailed simulation study. For small sample sizes, the bias for the
 fractional parameter, d, can be quite substantial when the other
 parameters are also estimated simultaneously. 
Journal: Applied Economics 
Pages: 1509-1514 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418916 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1509-1514




Template-Type: ReDIF-Article 1.0
Author-Name: Shandre Mugan Thangavelu 
Author-X-Name-First: Shandre Mugan 
Author-X-Name-Last: Thangavelu 
Author-Name: David Owyong 
Author-X-Name-First: David 
Author-X-Name-Last: Owyong 
Title: Impact of public capital on the manufacturing productive performance of Japanese industries 
Abstract:
  The paper analyses the impact of public capital on the Japanese
 manufacturing industries from 1970 to 1995. Unlike previous studies, which
 are based mostly on economy-wide analysis, this study is based on a
 disaggregated analysis at the industry level. A Generalized Leontief cost
 function is utilized to estimate the impact of public capital on nine
 manufacturing industries in Japan. The results indicate that public
 capital offers no insignificant contribution to the productive performance
 of these manufacturing industries except for Paper, Textiles and
 Transport. The paper also suggests that the bubble economy in the 1980s is
 the contributing factor behind this insignificant effect of public
 capital. 
Journal: Applied Economics 
Pages: 1515-1520 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418925 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418925 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1515-1520




Template-Type: ReDIF-Article 1.0
Author-Name: Willie Belton 
Author-X-Name-First: Willie 
Author-X-Name-Last: Belton 
Author-Name: Richard Cebula 
Author-X-Name-First: Richard 
Author-X-Name-Last: Cebula 
Title: Capacity utilization rates and unemployment rates: are they complements or substitutes in warning about future inflation? 
Abstract:
  This research examines capacity utilization as a measure of economic
 slack in the US economy. Many macroeconomists have questioned the use of
 capacity utilization as a measure of economics slack on several fronts.
 The first issue revolves around the definition and accuracy of measurement
 of the capacity utilization rate in the US economy. Since this research
 uses existing Federal Reserve measures of capacity utilization, no
 insights into the definition and measurement issues are offered other than
 the fact that a consistent role was found for two different Fed measures
 of capacity utilization in explaining inflation. The second issue
 effectively involves the concern as to robustness of the link between the
 capacity utilization rate and inflation. There is indeed reason for the
 Federal Reserve to take note of changes in capacity utilization when
 trying to determine its policy position with regard to inflation. Clearly,
 the high capacity measure developed in this research offers distinct
 information about the inflation process. The third issue raises the
 question as to whether the capacity utilization and unemployment rates are
 complements or substitutes in the inflation equation. Both rates tend to
 provide similar information regarding price changes at low levels of
 aggregate resource usage. However, as resource usage in the economy
 becomes increasingly close to its maximum potential, the labour market
 impact on inflation, as capture by unemployment rate measures, is
 distinctly different from that of capacity constraints. Finally, if the
 capacity utilization rate is indeed a useful measure of inflationary
 pressure, is there a threshold level of the capacity utilization rate
 above which policymakers should become particularly concerned about the
 potential of accelerating inflation? Across two measures of inflation, the
 widely discussed capacity threshold level is in the 84-85% range. 
Journal: Applied Economics 
Pages: 1521-1532 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418934 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418934 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1521-1532




Template-Type: ReDIF-Article 1.0
Author-Name: Mickael Lothgren 
Author-X-Name-First: Mickael 
Author-X-Name-Last: Lothgren 
Title: Specification and estimation of stochastic multiple-output production and technical inefficiency 
Abstract:
  This paper presents a primal-based approach for specification and
 estimation of multiple-output production frontiers that allows
 simultaneous identification and estimation of determinants of technical
 inefficiency. The proposed model extends the technical efficiency effects
 model by Battese and Coelli (1995) to general multiple-output
 technologies. An empirical application using Swedish health care panel
 data from the years 1989-1994 is included. The key issue is to test for
 the effects on technical efficiency of an organizational reform
 implemented with the primary purpose to increase efficiency. The results
 reveal no significant effect on technical efficiency of the reform, but
 evidence of overall decreased technical efficiency and technical progress
 in the provision of health care over the studied time period are found. 
Journal: Applied Economics 
Pages: 1533-1540 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418943 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418943 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1533-1540




Template-Type: ReDIF-Article 1.0
Author-Name: Michele McLennan 
Author-X-Name-First: Michele 
Author-X-Name-Last: McLennan 
Title: Does household labour impact market wages? 
Abstract:
  This study investigates the hypothesis that women's greater home
 responsibilities contribute directly to their lower wages because
 household labour time reduces their market effort. OLS regressions show a
 significant negative effect of household labour hours on market wages for
 white married women, but not for other groups of women (single, black) or
 men. Regressions correcting for endogeneity of household hours in the wage
 equation or heterogeneity among women indicate there is no significant
 effect of household labour hours on wages for any demographic group. These
 results suggest that the evidence in support of the hypothesis is not
 compelling. 
Journal: Applied Economics 
Pages: 1541-1557 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418952 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418952 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1541-1557




Template-Type: ReDIF-Article 1.0
Author-Name: Sarmistha Pal 
Author-X-Name-First: Sarmistha 
Author-X-Name-Last: Pal 
Author-Name: Jocelyn Kynch 
Author-X-Name-First: Jocelyn 
Author-X-Name-Last: Kynch 
Title: Determinants of occupational change and mobility in rural India 
Abstract:
  With a view to redress the dearth of economic analysis on occupational
 dynamics in rural household economies, this study examines the nature and
 characteristics of occupational change and mobility in rural India. Using
 the unique WIDER data-set from six villages in West Bengal, India the
 factors causing a change of primary occupation among those who tried to
 change occupation over a twelve-month recall period has been analysed.
 Bivariate probit estimates jointly determining the probability of trying
 to change occupation and having been successful suggest that success in
 changing occupation depends crucially on socially constructed 'status'-
 being older, male, from larger farming families or having higher schooling
 experience. They also exemplify the effects of regional diversity, levels
 of prosperity and different patterns of employment between agricultural
 and non-agricultural activities. 
Journal: Applied Economics 
Pages: 1559-1573 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418961 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418961 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1559-1573




Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Maniadakis 
Author-X-Name-First: Nikolaos 
Author-X-Name-Last: Maniadakis 
Author-Name: Emmanuel Thanassoulis 
Author-X-Name-First: Emmanuel 
Author-X-Name-Last: Thanassoulis 
Title: Assessing productivity changes in UK hospitals reflecting technology and input prices 
Abstract:
  In this study Malmquist productivity indexes are used to evaluate the
 performance of acute hospitals in the UK over the period after the
 introduction of the internal market in the National Health Service in
 1991. The indexes are computed using nonparametric programming, known as
 Data Envelopment Analysis, and they are decomposed into multiple component
 measures to give insights into the trends in hospital performance. Overall
 it is found that productivity regressed in the year after the reforms but
 progressed thereafter so that overall there was a net progress both as far
 as the inputs and costs are concerned. Productivity progress is mainly due
 to overall efficiency progress, which in turn is mostly attributed to
 allocative efficiency improvements. Technical change resulted in a small
 reduction in the amount of inputs used but also at higher production
 costs, because of a worsening in the match between input mixes and
 relative input prices. However, it is suggested that the gains in
 productivity are not high enough to argue that the internal market has had
 a significant impact on productivity. Finally, it is argued that the
 methodologies employed here can be a valuable evaluative and managerial
 tool in the context of the new NHS reforms about to be introduced. 
Journal: Applied Economics 
Pages: 1575-1589 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418970 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418970 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1575-1589




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Brown 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Brown 
Author-Name: Dennis Glennon 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Glennon 
Title: Cost structures of banks grouped by strategic conduct 
Abstract:
  The hypothesis that the banking system consists of firms that use the
 same production technology is tested and rejected in this study. Six
 groupings of the population of commercial banks are identified using
 cluster analysis. The banks are grouped to reflect similar production
 technologies within groups but different technologies across groups as
 defined by the strategic conduct (i.e., activities) of the banks. The
 results suggest that banks in different clusters employ production
 processes that feature different degrees of substitutability between
 factors of production, and that the estimates of input substitutability
 for those groups look quite different from those estimated based on the
 full population of commercial banks. The impact of the homogeneity
 production technology assumption on the measurement of cost efficiency is
 also assessed. The results show that partitioning the industry by
 strategic conduct reduces the average inefficiency in the industry. These
 results support those found by others who used similar partitioning
 criteria but a more narrowly defined sample of banks. 
Journal: Applied Economics 
Pages: 1591-1605 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418989 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418989 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1591-1605




Template-Type: ReDIF-Article 1.0
Author-Name: A. M. Gazely 
Author-X-Name-First: A. M. 
Author-X-Name-Last: Gazely 
Author-Name: J. M. Binner 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Binner 
Title: The application of neural networks to the Divisia index debate: evidence from three countries 
Abstract:
  If monetary policy is to be effective in controlling the macroeconomy,
 accurate measurement of the money supply is essential. The conventional
 way of measuring the level of the money supply is to simply sum the
 constituent liquid liabilities of banks. However, a more sophisticated,
 weighted monetary index has been proposed to take account of the varying
 degrees of liquidity of the short-term instruments included in money.
 Inferences about the effects of money on economic activity may depend
 importantly on the choice of monetary index because simple sum aggregates
 cannot internalize pure substitution effects. This hypothesis is
 investigated in the current paper. A Divisia index measure of money is
 constructed for the USA, UK and Italian economies and its inflation
 forecasting potential is compared with that of its simple sum counterpart
 in each of the three countries. The powerful Artificial Intelligence
 technique of neural networks is used to allow a completely flexible
 mapping of the variables and a greater variety of functional form than is
 currently achievable using conventional econometric techniques. The
 application of neural network methodology to examine the money-inflation
 link is highly experimental in nature and, hence, the overriding feature
 of this research is one of simplicity. Superior inflation forecasting
 models are achieved when a Divisia M2 measure of money is used in the
 majority of cases. This support for Divisia is entirely consistent with
 findings based on standard econometric techniques reported from the
 respective central and Federal Reserve banks of each country. Divisia
 monetary aggregates appear to offer advantages over their simple sum
 counterparts as macroeconomic indicators. Further, the combination of
 Divisia measures of money with the artificial neural network offers a
 promising starting point for improved models of inflation. 
Journal: Applied Economics 
Pages: 1607-1615 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400418998 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418998 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1607-1615




Template-Type: ReDIF-Article 1.0
Author-Name: Abul Masih 
Author-X-Name-First: Abul 
Author-X-Name-Last: Masih 
Author-Name: Rumi Masih 
Author-X-Name-First: Rumi 
Author-X-Name-Last: Masih 
Title: The dynamics of fertility, family planning and female education in a developing economy 
Abstract:
  Unlike most empirical works on fertility analysis, this study is the
 first attempt to analyse the dynamics of fertility and its determinants
 with a particular focus on the role played by female education and family
 planning programmes in the context of a traditional society. The analysis
 is based on the application of the following dynamic time-series
 techniques in a multivariate context: cointegration, vector
 error-correction modelling and variance decompositions. These 'dynamic'
 tools are recently developed and hitherto untried in fertility analysis in
 the context of a poor developing economy, such as India. The results based
 on the above most recently developed methodology, broadly indicate that in
 the complex dynamic interactions, the importance of conventional
 'structural' hypothesis as a 'Granger-causal' factor in bringing fertility
 down in the longer term cannot be denied. However, overall, in the short
 to long term, the findings appear to be more consistent with the recent
 'ideational' hypothesis (emphasizing the critical role played by the two
 policy variables in the analysis- i.e. changes in the female secondary
 enrolment ratios, and family planning programmes- to ensure 'initial'
 fertility decline) than with the conventional 'structural' hypothesis
 (emphasizing a significant socio-economic structural change as a
 pre-condition for 'initial' fertility decline). 
Journal: Applied Economics 
Pages: 1617-1627 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400419005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400419005 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1617-1627




Template-Type: ReDIF-Article 1.0
Author-Name: Yiu-Wah Ho 
Author-X-Name-First: Yiu-Wah 
Author-X-Name-Last: Ho 
Author-Name: Roger Strange 
Author-X-Name-First: Roger 
Author-X-Name-Last: Strange 
Author-Name: Jenifer Piesse 
Author-X-Name-First: Jenifer 
Author-X-Name-Last: Piesse 
Title: CAPM anomalies and the pricing of equity: evidence from the Hong Kong market 
Abstract:
  Using a sample of equity stocks traded on the Hong Kong stock market,
 this study examines empirically the independent and joint roles of the
 more commonly hypothesized variables in explaining cross-sectional
 variation in average returns over the period from January 1980 to December
 1994. Evidence indicates that beta, book leverage, earnings-price ratio
 and dividend yield are not priced, whereas significant book-to-market
 equity, market leverage (absorbed by book-to-market equity), size, and
 share price effects are observed. The findings should prove valuable in
 portfolio management and corporate financial decisions. 
Journal: Applied Economics 
Pages: 1629-1636 
Issue: 12 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400419014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400419014 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1629-1636




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Clarke 
Author-X-Name-First: Philip 
Author-X-Name-Last: Clarke 
Title: Valuing the benefits of mobile mammographic screening units using the contingent valuation method 
Abstract:
  The benefits of improving access to mammographic screening are estimated
 using a contingent valuation experiment conducted on 458 women in 19 rural
 Australian towns. The contingent valuation survey provides women with
 information on mammographic screening and uses a closed-ended format to
 elicit their willingness to pay for a visit of a mobile mammographic
 screening unit. Single and double-bounded versions of the discrete
 response contingent valuation method are employed in the estimation of
 willingness to pay. The double-bounded contingent valuation approach is
 shown to be biased due to respondents having a greater disposition to
 respond 'no' when the bid amount in the follow-up question is higher than
 the bid amount offered in the initial question. Several approaches to
 dealing with this bias are examined. 
Journal: Applied Economics 
Pages: 1647-1655 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400420995 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400420995 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1647-1655




Template-Type: ReDIF-Article 1.0
Author-Name: Tilak Abeysinghe 
Author-X-Name-First: Tilak 
Author-X-Name-Last: Abeysinghe 
Title: Electronics and growth cycles in Singapore 
Abstract:
  With the help of spectral and structural time series analyses it is found
 that the demand for electronics in the USA goes through a cycle with a
 period of about four to five years. Because of the synchronized nature of
 the electronics market, the global demand for electronics is likely to
 follow a similar cycle. The electronics cycle is unlikely to be caused by
 a regular business cycle. The major cause of the electronics cycle appears
 to be a product cycle which results from the introduction of new products
 to the market. As a result countries like Singapore which depend heavily
 on electronics exports may face roller coaster rides, especially in their
 manufacturing growth. Product diversification is the best solution to the
 problem. 
Journal: Applied Economics 
Pages: 1657-1663 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421002 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1657-1663




Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Wadud 
Author-X-Name-First: Abdul 
Author-X-Name-Last: Wadud 
Author-Name: Ben White 
Author-X-Name-First: Ben 
Author-X-Name-Last: White 
Title: Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods 
Abstract:
  This study compares estimates of technical efficiency obtained from the
 stochastic frontier approach and the Data Envelopment Analysis (DEA)
 approach using farm-level survey data for rice farmers in Bangladesh.
 Technical inefficiency effects are modelled as a function of farm-specific
 socioeconomic factors, environmental factors and irrigation
 infrastructure. The results from both the approaches indicate that
 efficiency is significantly influenced by the factors measuring
 environmental degradation and irrigation infrastructure. 
Journal: Applied Economics 
Pages: 1665-1673 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421011 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421011 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1665-1673




Template-Type: ReDIF-Article 1.0
Author-Name: P. J. A. Robson 
Author-X-Name-First: P. J. A. 
Author-X-Name-Last: Robson 
Author-Name: R. J. Bennett 
Author-X-Name-First: R. J. 
Author-X-Name-Last: Bennett 
Title: The use and impact of business advice by SMEs in Britain: an empirical assessment using logit and ordered logit models 
Abstract:
  This study assesses the effect of differences in types of client on the
 use and impact of business advice by SMEs in Britain using new survey
 evidence from the Cambridge ESRC Centre for Business Research Survey of
 1997. The survey, covering over 2500 respondents, is the largest and most
 definitive assessment available in Britain. Moreover, the survey allows an
 assessment of the full range of providers of external advice, the private
 sector, business associations and various public sector bodies, as well as
 the fields of advice. Using multivariate logit models it is found that
 size of firm, rate of growth and innovation appear to be the main
 variables influencing the likelihood of firms seeking external advice,
 both from different sources and from different fields. Other variables
 which are investigated include, age, profitability, skill levels,
 manufacturer/services, and exporter/nonexporter. Ordered logit models of
 the impact of the advice demonstrate that there are significant
 differences between clients' perceived impact of advice and the sources of
 advice they use, chiefly as a result of firm size, and to a lesser extent
 for growth, innovation and export levels. 
Journal: Applied Economics 
Pages: 1675-1688 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1675-1688




Template-Type: ReDIF-Article 1.0
Author-Name: Tanweer Akram 
Author-X-Name-First: Tanweer 
Author-X-Name-Last: Akram 
Title: Publicly subsidized privatization: a simple model of dysfunctional privatization 
Abstract:
  This paper points out the limitations of the privatization programme in
 Bangladesh, with particular reference to the debt-default status of
 privatized firms. First, detailed analysis of the debt-default status of
 privatized firms is presented using data obtained from the central bank.
 Secondly, a simple model of dysfunctional privatization is constructed to
 show that perverse outcomes of privatization are possible. The experience
 of developing economies, such as Bangladesh, lends credence to the results
 of this model. Finally, various types of privatization are classified
 following Bhagwati's (1982) typology of directly unproductive
 profit-seeking activities. 
Journal: Applied Economics 
Pages: 1689-1699 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1689-1699




Template-Type: ReDIF-Article 1.0
Author-Name: Jai Mah 
Author-X-Name-First: Jai 
Author-X-Name-Last: Mah 
Title: Antidumping decisions and macroeconomic variables in the USA 
Abstract:
  This paper investigates the macroeconomic factors that explain
 antidumping decisions in the US International Trade Commission. Johansen's
 cointegration test results show that there is a long run equilibrium
 relationship between growth of the percentage of affirmative antidumping
 decisions and trade balance. The error correction model shows that there
 is a causality running from the latter to the former. Growth of the
 percentage of affirmative antidumping decisions is revealed to cause
 slowdown in economic growth. Partisan characteristics are observed in the
 Commissioners' antidumping decisions. 
Journal: Applied Economics 
Pages: 1701-1709 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1701-1709




Template-Type: ReDIF-Article 1.0
Author-Name: Harvey Cutler 
Author-X-Name-First: Harvey 
Author-X-Name-Last: Cutler 
Author-Name: Stephen Davies 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Davies 
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Title: Forecasting in a large macroeconomic system 
Abstract:
  This paper examines the efficiency gains yielded from estimating multiple
 equation cointegrated systems as compared to their single equation
 counterparts. In particular, this paper is concerned with the ability of
 utilizing the cointegrating information to improve forecasting
 performance. Recently an inability to improve forecasts of real income
 once money demand error correction terms were introduced has been used to
 argue that the M2 relationship had broken down during the early 1990s.
 However, the results suggest that once the underlying responses of
 variables are more closely investigated, the behaviour of M2 has remained
 stable. 
Journal: Applied Economics 
Pages: 1711-1718 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421057 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1711-1718




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Cummings 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Cummings 
Author-Name: Mary Beth Walker 
Author-X-Name-First: Mary Beth 
Author-X-Name-Last: Walker 
Title: Measuring the effectiveness of voluntary emission reduction programmes 
Abstract:
  This paper examines the evaluation of state environmental policies aimed
 at reducing ground level ozone in order to meet air quality standards set
 by the US Environmental Protection Agency. Several states with
 metropolitan areas that violate federal air quality regulations have
 adopted voluntary emission reduction programmes. These programmes focus on
 emissions from mobile sources, with the chief source being the automobile.
 States are allowed to claim credit towards bringing their metro areas
 closer to compliance with regulations only if they can provide credible
 evidence that these voluntary programmes are successful in reducing
 emissions. A model is developed to forecast aggregate traffic volumes so
 that one can assess the impact of the programme in reducing traffic flows
 during 'Ozone Action Days'. Background information on the difficulties of
 measuring the ozone problem and on the recent policies adopted by the US
 EPA is provided. Using data from the Atlanta, Georgia metropolitan area,
 the accuracy of the model is demonstrated and preliminary analysis of
 whether the programmes which began in the summer of 1998 has had the
 desired impact is provided. 
Journal: Applied Economics 
Pages: 1719-1726 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421066 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421066 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1719-1726




Template-Type: ReDIF-Article 1.0
Author-Name: David Armstrong 
Author-X-Name-First: David 
Author-X-Name-Last: Armstrong 
Author-Name: Duncan McVicar 
Author-X-Name-First: Duncan 
Author-X-Name-Last: McVicar 
Title: Value added in further education and vocational training in Northern Ireland 
Abstract:
  At the age of 16, many young people in the UK decide to leave school and
 enter vocational education or training, either at a Further Education (FE)
 college, or on a Government training scheme. In spite of the size and
 importance of this group, the current debate about education and training
 standards has tended to focus more on how to improve schools, largely
 neglecting the potential contribution to be made by the FE and vocational
 training sectors. This study seeks to begin to redress this imbalance by
 examining the extent to which those young people leaving school and
 entering vocational education or training at 16 obtained further
 qualifications up to the age of 18. In particular, there is an examination
 of whether the choice between FE and Government training schemes at age 16
 influences the subsequent success of young people in terms of gaining
 additional qualifications. Adopting an ordered probit approach to
 modelling qualifications levels, the results contradict the (somewhat
 pessimistic) common perception of Government training schemes. In
 particular, no significant differences per se are found between the value
 added performance of FE colleges and Government training schemes. 
Journal: Applied Economics 
Pages: 1727-1736 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421075 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1727-1736




Template-Type: ReDIF-Article 1.0
Author-Name: David Peel 
Author-X-Name-First: David 
Author-X-Name-Last: Peel 
Author-Name: David Law 
Author-X-Name-First: David 
Author-X-Name-Last: Law 
Author-Name: Michael Cain 
Author-X-Name-First: Michael 
Author-X-Name-Last: Cain 
Title: Product bundling and a rule of thumb versus the Harville formulae: can each way bets with UK bookmakers generate abnormal returns 
Abstract:
  Bookmakers practise a type of product bundling. To bet a horse for a
 place a punter has to bet an equal amount for a win. The returns to the
 place component of the bet are determined by a rule of thumb. This paper
 examines whether the product bundling negates a betting strategy that
 endeavours to exploit any inefficiency in pricing of the place component
 of each way bets based on the Harville formulae. In order to implement the
 Harville formulae Shin probabilities are employed, which correct for the
 favourite longshot bias in starting price odds, as measures of win
 probabilities. The analysis suggests that small positive expected returns
 to each way bets appear to exist. 
Journal: Applied Economics 
Pages: 1737-1744 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421084 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421084 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1737-1744




Template-Type: ReDIF-Article 1.0
Author-Name: David Karemera 
Author-X-Name-First: David 
Author-X-Name-Last: Karemera 
Author-Name: Victor Iwuagwu Oguledo 
Author-X-Name-First: Victor Iwuagwu 
Author-X-Name-Last: Oguledo 
Author-Name: Bobby Davis 
Author-X-Name-First: Bobby 
Author-X-Name-Last: Davis 
Title: A gravity model analysis of international migration to North America 
Abstract:
  This study examines the influence of political, economic and demographic
 factors on the size and composition of migration flows to North America. A
 modified gravity model is specified and adjusted to include immigration
 regulations and characteristics specific to the origin and destination
 countries. For empirical test of the model, the time period of study is
 from 1976-1986, and 70 countries are covered for a total of 1540
 observations of migration flows to Canada and the USA. The results reveal
 that the population of origin countries and the income of destination
 countries are two major determinants of migration to North America. High
 population areas of Asia and Latin America provided a large share of the
 immigrants. Domestic restrictions on political and civil freedom in origin
 countries are found to significantly impair migration to North America. 
Journal: Applied Economics 
Pages: 1745-1755 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421093 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1745-1755




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Marc Falter 
Author-X-Name-First: Jean-Marc 
Author-X-Name-Last: Falter 
Author-Name: Christophe Perignon 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Perignon 
Title: Demand for football and intramatch winning probability: an essay on the glorious uncertainty of sports 
Abstract:
  The aims of this study are (i) to identify the main determinants of the
 demand for French Premiere Division football matches using all matches
 played during the 1997/1998 season, (ii) to estimate a team-specific
 probability of success, and (iii) to propose an updating process for the
 intramatch winning probability. The methodology is tested empirically over
 an out-of-sample data set using matches of the 1998/1999 season. The
 results show that football appears to be an inferior product affected by
 both socio-economic and football variables, and that the main football
 variables have only a tenuous explanatory power concerning the final
 outcome of a given match. 
Journal: Applied Economics 
Pages: 1757-1765 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421101 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421101 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1757-1765




Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Brown 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Brown 
Author-Name: John Sessions 
Author-X-Name-First: John 
Author-X-Name-Last: Sessions 
Title: Employee militancy in Britain: 1985-1990 
Abstract:
  This paper profiles individual strike incidence and militancy in Britain
 over the period 1985-1990 using data derived from the British Social
 Attitudes Survey. The approach of the study is to quantify the
 differential probabilities of strike activity and other forms of militant
 behaviour of particular groups within the population. Following studies
 from the USA in highlighting, in particular, the role of demographic and
 attitudinal influences. The results indicate that demographic influences
 are, in general, the key correlates of strike incidence and militancy
 ceteris paribus. 
Journal: Applied Economics 
Pages: 1767-1774 
Issue: 13 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400421110 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421110 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1767-1774




Template-Type: ReDIF-Article 1.0
Author-Name: Wayne Simpson 
Author-X-Name-First: Wayne 
Author-X-Name-Last: Simpson 
Title: Intermittent work activity and earnings 
Abstract:
  Patterns of intermittent work activity appear to be more common in the
 modern labour market, at least for younger workers. This study extends
 earlier models of the relationship between labour market intermittency and
 earnings to include both part time work and nonparticipation, to
 differentiate between past work experience and current job tenure, to
 allow for nonlinear experience effects, and to account for selection bias
 arising from the exclusion of nonworkers. The results suggest that the
 effects of part time work and nonparticipation on earnings are similar.
 Moreover, some common patterns emerge: the effects are larger for women,
 greater for young workers, and greater when intermittency replaces current
 job tenure. 
Journal: Applied Economics 
Pages: 1777-1786 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400424991 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400424991 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1777-1786




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Panik 
Author-X-Name-First: Michael 
Author-X-Name-Last: Panik 
Title: Estimating global returns to scale with a cone-homogeneous production function: some cross-section results 
Abstract:
  This paper employs a cone-homogeneous production function to approximate,
 as closely as desired, a ray-homogeneous production function. Points in
 input space are projected by an output scaling function on to a fixed ray
 and a Cobb-Douglas cone function is used to obtain an estimate of global
 returns to scale. The empirical results indicate that we get a good
 approximation to a ray-homogeneous production function from the estimated
 cone-homogeneous function. 
Journal: Applied Economics 
Pages: 1787-1791 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425008 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1787-1791




Template-Type: ReDIF-Article 1.0
Author-Name: Amparo Sanchis 
Author-X-Name-First: Amparo 
Author-X-Name-Last: Sanchis 
Title: Does privatization remove restrictive working practices? Evidence from UK establishments 
Abstract:
  This study investigates the links between privatization and changes in
 working practices using data from the UK 1990 Workplace Employees
 Relations Survey. Privatization raises the probability of an establishment
 of experiencing reduced job demarcation and/or increased flexibility in
 the use of the workforce by managers. After exploration no clear
 association is found between ownership and the level of restrictive
 working practices. 
Journal: Applied Economics 
Pages: 1793-1800 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425017 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1793-1800




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Brown 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Brown 
Title: Hedonic price indexes and the distribution of buyers across the product space: an application to mainframe computers 
Abstract:
Journal: Applied Economics 
Pages: 1801-1808 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1801-1808




Template-Type: ReDIF-Article 1.0
Author-Name: Holger Gorg 
Author-X-Name-First: Holger 
Author-X-Name-Last: Gorg 
Title: Multinational companies and indirect employment: measurement and evidence 
Abstract:
  This study suggests a new approach towards measuring the indirect
 employment effects of multinational companies (MNCs) using a simple
 Cobb-Douglas production function. Based on the assumption that domestic
 sales by indigenous firms in a sector are supplies for multinationals in
 that sector rather than final goods, indirect employment effects are
 measured as the effect of an increase in domestically purchased inputs on
 employment in indigenously-owned suppliers. Applying this measure to data
 for the electronics sector in Ireland we find that there have been
 positive indirect effects of MNCs on employment in indigenous firms. The
 value of the estimated coefficients depends somewhat on the specification
 of the model estimated but the standard specification suggests that a 10%
 increase in domestically sold output by indigenous firms leads to an
 employment growth of around 2% in these firms. 
Journal: Applied Economics 
Pages: 1809-1818 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425035 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1809-1818




Template-Type: ReDIF-Article 1.0
Author-Name: Dhaneshwar Ghura 
Author-X-Name-First: Dhaneshwar 
Author-X-Name-Last: Ghura 
Author-Name: Barry Goodwin 
Author-X-Name-First: Barry 
Author-X-Name-Last: Goodwin 
Title: Determinants of private investment: a cross-regional empirical investigation 
Abstract:
  This study investigates the determinants of private investment in Asia,
 Sub-Saharan Africa (SSA), and Latin America with panel data for the period
 1975-1992. Econometric tests indicated a preference for the random effects
 estimation procedure over other alternatives. The results, with pooled
 data for all the 31 countries in the sample, confirm some results found
 elsewhere in the empirical literature. Namely, private investment in
 developing countries is stimulated by real GDP growth, increases in
 government investment, improvements in financial intermediation,
 reductions in credit to the government, and declines in world interest
 rates. Another interesting result relates to the important role played by
 educational development in stimulating private investment. Nevertheless,
 statistically significant adverse effects of external debt on private
 investment found by other studies could not be confirmed by this study. In
 addition, the results for the full sample of countries are by no means
 common across the regions. While real GDP growth stimulated private
 investment in Asia and Latin America, its effect was not significant in
 SSA. Also, while government investment stimulated private investment in
 SSA, it had the opposite effect in Asia and Latin America. In addition,
 private investment was stimulated by increases in private sector credit in
 Asia and SSA, but not in Latin America. Also, increases in credit to the
 government had significant adverse effects on private investment in SSA
 and Latin America. Further, the adverse effects of external shocks were
 statistically significant only in SSA, a result that confirms the view
 that the region is vulnerable to these shocks. 
Journal: Applied Economics 
Pages: 1819-1829 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1819-1829




Template-Type: ReDIF-Article 1.0
Author-Name: Padma Rao Sahib 
Author-X-Name-First: Padma Rao 
Author-X-Name-Last: Sahib 
Title: The information content of wage and duration data in a search model 
Abstract:
  Estimates of the parameters of the wage offer density and the offer
 arrival process of a simple search model are presented in this paper. The
 optimality constraint from the search model is treated as a restriction
 and its effect on parameter estimates is analysed. Estimates from wage
 data alone and estimates from duration data alone can be interpreted as
 unrestricted estimates while estimates obtained from wage and duration
 data together can be interpreted as restricted estimates. This
 interpretation allows a test of the optimality constraint which is
 rejected by the data used. Estimates reveal a substantial difference in
 the information contained in wages and the information contained in
 durations, but benefit elasticities are consistent with findings from
 previous studies. 
Journal: Applied Economics 
Pages: 1831-1839 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425053 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425053 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1831-1839




Template-Type: ReDIF-Article 1.0
Author-Name: Tsu-Tan Fu 
Author-X-Name-First: Tsu-Tan 
Author-X-Name-Last: Fu 
Author-Name: Lung-An Li 
Author-X-Name-First: Lung-An 
Author-X-Name-Last: Li 
Author-Name: Yih-Ming Lin 
Author-X-Name-First: Yih-Ming 
Author-X-Name-Last: Lin 
Author-Name: Kamhon Kan 
Author-X-Name-First: Kamhon 
Author-X-Name-Last: Kan 
Title: A limited information estimator for the multivariate ordinal probit model 
Abstract:
  A limited information estimator for the multivariate ordinal probit model
 is developed. The main advantage of the estimator is that even for high
 dimensional models, the estimation procedure requires the evaluation of
 bivariate normal integrals only. The proposed estimator also avoids the
 potential problem of encountering local maxima in the estimation process,
 which is looming using maximum likelihood. The performance of the limited
 information estimator is shown by Monte Carlo experiments to be excellent
 and it is comparable to that of the maximum likelihood estimator. Finally,
 an application of the limited information multivariate ordinal probit to
 model the consumption level of cigarette, alcohol and betel nut is
 presented. 
Journal: Applied Economics 
Pages: 1841-1851 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425062 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425062 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1841-1851




Template-Type: ReDIF-Article 1.0
Author-Name: Willie Belton 
Author-X-Name-First: Willie 
Author-X-Name-Last: Belton 
Author-Name: Richard Cebula 
Author-X-Name-First: Richard 
Author-X-Name-Last: Cebula 
Title: Capacity utilization rates and unemployment rates: are they complements or substitutes in warning about future inflation? 
Abstract:
  This research examines capacity utilization as a measure of economic
 slack in the US economy. Many macroeconomists have questioned the use of
 capacity utilization as a measure of economics slack on several fronts.
 The first issue revolves around the definition and accuracy of measurement
 of the capacity utilization rate in the US economy. Since this research
 use existing Federal Reserve measures of capacity utilization no insights
 into the definition and measurement issues are offered other than the fact
 that a consistent role is found for two different Fed measures of capacity
 utilization in explaining inflation. The second issue effectively involves
 the concern as to robustness of the link between the capacity utilization
 rate and inflation. It was found that there is indeed reason for the
 Federal Reserve to take note of changes in capacity utilization when
 trying to determine its policy position with regard to inflation. Clearly,
 the high capacity measure developed in this research offers distinct
 information about the inflation process. The third issue raises the
 question as to whether the capacity utilization and unemployment rates are
 complements or substitutes in the inflation equation. Both rates tend to
 provide similar information regarding price changes at low levels of
 aggregate resource usage. However, as resource usage in the economy
 becomes increasingly close to its maximum potential, the labour market
 impact on inflation, as capture by unemployment rate measures, is
 distinctly different from that of capacity constraints. Finally, if the
 capacity utilization rate is indeed a useful measure of inflationary
 pressure, is there a threshold level of the capacity utilization rate
 above which policymakers should become particularly concerned about the
 potential of accelerating inflation? It was found that across two measures
 of inflation, the widely discussed capacity threshold level is in the
 84-85% range. 
Journal: Applied Economics 
Pages: 1853-1864 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425071 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425071 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1853-1864




Template-Type: ReDIF-Article 1.0
Author-Name: Svenn-Age Dahl 
Author-X-Name-First: Svenn-Age 
Author-X-Name-Last: Dahl 
Author-Name: Oivind Anti Nilsen 
Author-X-Name-First: Oivind Anti 
Author-X-Name-Last: Nilsen 
Author-Name: Kjell Vaage 
Author-X-Name-First: Kjell 
Author-X-Name-Last: Vaage 
Title: Work or retirement? Exit routes for Norwegian elderly 
Abstract:
  This study analyses early retirement pathways for Norwegian male and
 female workers, applying a multinomial logit model to a data set covering
 more than 10500 employees, ages 56-61, in 1989. The aim is to analyse the
 transition to different destinations, i.e. disability pension,
 unemployment benefits, and out of the labour force, in the period
 1989-1995. Both family characteristics, expected income in different
 end-states, and push factors, such as industry attachment and local
 unemployment, are important for the early retirement process. Findings
 also indicate that there are several gender differences. The explanatory
 variables have different effects on the different exit routes for males as
 well as for females. The hypothesis that disability and unemployment are
 exchangeable pathways into early retirement is rejected. 
Journal: Applied Economics 
Pages: 1865-1876 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425080 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425080 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1865-1876




Template-Type: ReDIF-Article 1.0
Author-Name: J. C. H. Jones 
Author-X-Name-First: J. C. H. 
Author-X-Name-Last: Jones 
Author-Name: J. A. Schofield 
Author-X-Name-First: J. A. 
Author-X-Name-Last: Schofield 
Author-Name: D. E. A. Giles 
Author-X-Name-First: D. E. A. 
Author-X-Name-Last: Giles 
Title: Our fans in the north: the demand for British Rugby League 
Abstract:
  This paper reports the results of estimating a single equation model of
 an attendance function for British Rugby League over the seasons 1982/83
 to 1990/91. The data are panel data covering virtually every team which
 played in the two division league over the nine year time period.
 Diagnostic tests indicate that the appropriate model is a semilog random
 effects model, where the dependent variable is league attendance weighted
 by population. The major results are as follows: there are significant
 positive relationships between league attendance and various measures of
 team success (although the direction of causality is moot), team quality
 (as proxied by the two divisions) and the economic quality of team
 location (as proxied by the unemployment rate); but there is no
 discernible relationship between league attendance and either success in
 nonleague trophy competitions or measures of exceptional player quality. 
Journal: Applied Economics 
Pages: 1877-1887 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425099 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425099 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1877-1887




Template-Type: ReDIF-Article 1.0
Author-Name: Rand Ressler 
Author-X-Name-First: Rand 
Author-X-Name-Last: Ressler 
Author-Name: Melissa Waters 
Author-X-Name-First: Melissa 
Author-X-Name-Last: Waters 
Title: Female earnings and the divorce rate: a simultaneous equations model 
Abstract:
  Economists have contributed a great deal of research, both theoretical
 and empirical, to the study of marital formation and dissolution. Many
 empirical examinations of marriage and divorce rates exist based on
 Becker's seminal contributions to the literature. All of these divorce
 studies are single equation models, with female earnings assumed
 exogenous. As discussed by Becker (1981), however, causality may run in
 the opposite direction as well: the divorce rate may influence female
 earnings. This paper estimates a simultaneous equations model in which
 divorce rates and female earnings are the jointly endogenous variables.
 Data are by state, for 1960, 1970, 1980 and 1990. The state-wide divorce
 rate equation is an extension of Waters and Ressler (1999), and the
 specification of a state-wide earnings equation follows standard human
 capital theory. The specification of joint endogeneity between female
 earnings and the divorce rate allows valid inferences to be made regarding
 the effect of female earnings on divorce for the first time. Most previous
 single equation studies of divorce have found that increases in female
 earnings significantly increase divorce rates. A simultaneous equations
 model will allow inferences to be made regarding the possibility of joint
 determination, which may cause a reevaluation of previous results. 
Journal: Applied Economics 
Pages: 1889-1898 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425107 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425107 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1889-1898




Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Cannari 
Author-X-Name-First: Luigi 
Author-X-Name-Last: Cannari 
Author-Name: Francesco Nucci 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Nucci 
Author-Name: Paolo Sestito 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Sestito 
Title: Geographic labour mobility and the cost of housing: evidence from Italy 
Abstract:
  In recent years, internal migration in Italy has declined markedly,
 notwithstanding the widening of the North-South gap in terms of
 unemployment rates and real income. Here, the extent to which the housing
 market has contributed to the decline is examined. Preliminary to this
 analysis, differentials in the cost of housing between the macro-areas of
 the country are estimated using data on the market price of houses located
 in 96 provincial capitals. Econometric evidence is provided supporting the
 view that the North-South housing price differential is a notable factor
 in explaining the falling pattern of mobility. The positive impact on
 migration from the South to the North of a wider gap in the two areas in
 terms of income and employment prospects has been offset by the housing
 price differential, which has steadily risen at least from the mid-1980s
 onwards. Yet, a considerable share of the decrease in mobility remains
 unexplained, possibly owing to the heterogeneity in the composition of
 migration flows across different cohorts. 
Journal: Applied Economics 
Pages: 1899-1906 
Issue: 14 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/000368400425116 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425116 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1899-1906




Template-Type: ReDIF-Article 1.0
Author-Name: John Cranfield 
Author-X-Name-First: John 
Author-X-Name-Last: Cranfield 
Author-Name: Paul Preckel 
Author-X-Name-First: Paul 
Author-X-Name-Last: Preckel 
Author-Name: James Eales 
Author-X-Name-First: James 
Author-X-Name-Last: Eales 
Author-Name: Thomas Hertel 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Hertel 
Title: On the estimation of 'an implicitly additive demand system' 
Abstract:
  Motivated by a lack of Engel flexibility in commonly used demand systems,
 Rimmer and Powell developed a new demand system. This system, referred to
 AIDADS, is implicitly, directly additive, possesses marginal budget shares
 and thus Engel elasticities, that vary nonlinearly with expenditure such
 that predicted budget shares are restricted to the [0,1] interval. Due to
 these attractive Engel properties, AIDADS represents a significant
 contribution to the literature on demand analysis. This paper presents an
 alternative estimation procedure to the one used by Rimmer and Powell and
 examines its properties via a case study. The proposed approach avoids a
 linear approximation employed in Rimmer and Powell's estimation framework.
 Based on a small Monte Carlo study, it appears that the approach produces
 more accurate estimates of the parameters and Engel elasticities. 
Journal: Applied Economics 
Pages: 1907-1915 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155832 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155832 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1907-1915




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Prieto-Rodriguez 
Author-X-Name-First: Juan 
Author-X-Name-Last: Prieto-Rodriguez 
Author-Name: Cesar Rodriguez-Gutierrez 
Author-X-Name-First: Cesar 
Author-X-Name-Last: Rodriguez-Gutierrez 
Title: The added worker effect in the Spanish case 
Abstract:
  This study estimates several equations of labour participation for
 married women to check if the 'added worker hypothesis' is fulfilled in
 the Spanish case. To test this hypothesis a subsample of married women are
 used, obtained from the Survey of Structure, Conscience and Biography of
 Class of the year 1991 (SCBC-91). The main outcome is that women's labour
 participation in Spain is still conditioned by their husbands' labour
 status. Specifically, women's labour participation is stimulated when
 their husbands are unemployed. 
Journal: Applied Economics 
Pages: 1917-1925 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155841 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155841 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1917-1925




Template-Type: ReDIF-Article 1.0
Author-Name: Felix J. Lopez Iturriaga 
Author-X-Name-First: Felix J. Lopez 
Author-X-Name-Last: Iturriaga 
Title: A panel data study on Spanish firms' inventory investment 
Abstract:
  This paper raises several questions about inventory investment of a
 sample of 172 big nonfinancial Spanish companies. Inventory investment has
 been usually explained by two alternative theories: the production
 smoothing model and the (S,s) model. First, we provide a descriptive
 analysis based on industry-level data to show some shortcomings of the
 first model. Then, we test a flexible accelerator model using firm-level
 data. The results seem to show that inventory investment, previous-period
 inventories and sales are closely and significantly related. This
 evidence, although not conclusive, rejects both the pure production
 smoothing model and the (S,s) model. At the same time, our results confirm
 the view of a target inventory level and the plausibility of the so-called
 stock-adjustment model, so that the optimal inventory holding buffers
 sales volatility. 
Journal: Applied Economics 
Pages: 1927-1937 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155850 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155850 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1927-1937




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Martinez-Zarzoso 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Martinez-Zarzoso 
Author-Name: Celestino Suarez-Burguet 
Author-X-Name-First: Celestino 
Author-X-Name-Last: Suarez-Burguet 
Title: The determinants of trade performance: influence of R&D on export flows 
Abstract:
  A theoretical model is presented, in which supply side differences
 between countries determine international trade flows. This model is
 empirically tested at a sectoral level for a group of EU countries, within
 a framework that focuses on changes through time and differences between
 countries. The results show that the validity of the theoretical model is
 limited at sectoral level. However, as expected, we find that the variable
 representing technological differences is significant and correctly signed
 for high-technology sectors. The evidence points to the existence of
 different production functions across countries and to the importance of
 supply side factors in determining the direction and the terms of trade. 
Journal: Applied Economics 
Pages: 1939-1946 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155869 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155869 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1939-1946




Template-Type: ReDIF-Article 1.0
Author-Name: Sandra Decker 
Author-X-Name-First: Sandra 
Author-X-Name-Last: Decker 
Title: Medicaid, AFDC and family formation 
Abstract:
  This paper uses the fact that states joined the Medicaid programme at
 different times between early 1966 and early 1970 to estimate the effect
 of health insurance availability on childbearing and marital choice. Data
 on women aged 15 to 45 during the 1964 to 1972 period from the March
 Current Population Survey (CPS) is used to estimate Medicaid's effect on
 the probability that a woman has recently given birth and is not married.
 It is found that the introduction of Medicaid led to a small but
 statistically significant increase in the probability that a woman is
 single and has recently given birth. Specifically, the introduction of
 Medicaid led to a 0.3 percentage point increase in the probability that a
 woman is a single mother of young children. This is an approximately 10%
 increase relative to the average fraction of single mothers in the sample
 of about 3%. Although nonwhite women are on average more likely to be
 single mothers than white women are, it is found that Medicaid did not
 significantly contribute to the formation of nonwhite female-headed
 families. In contrast, Medicaid led to an approximately 14% increase in
 the probability that a white woman is a single mother. 
Journal: Applied Economics 
Pages: 1947-1956 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155878 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155878 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1947-1956




Template-Type: ReDIF-Article 1.0
Author-Name: Alison Preston 
Author-X-Name-First: Alison 
Author-X-Name-Last: Preston 
Title: Market and spillover forces in wage award determination in Australia: 1986 to 1997 
Abstract:
  This paper examines the role of market and spillover forces in wage award
 determination in Australia. The results show, consistent with other
 similar studies, that wage awards are only weakly related to market
 forces. In the period studied (1986 to 1997) spillover forces emerge as
 the dominant determinant of award wage adjustments. The results thus
 provide some empirical evidence for phenomenon such as wage rigidity. 
Journal: Applied Economics 
Pages: 1957-1965 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155887 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155887 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1957-1965




Template-Type: ReDIF-Article 1.0
Author-Name: Tim Coelli 
Author-X-Name-First: Tim 
Author-X-Name-Last: Coelli 
Author-Name: Sergio Perelman 
Author-X-Name-First: Sergio 
Author-X-Name-Last: Perelman 
Title: Technical efficiency of European railways: a distance function approach 
Abstract:
  This study has two principal objectives. The first objective is to
 measure and compare the performance of European railways. The second
 objective is to illustrate the usefulness of econometric distance
 functions in the analysis of production in multioutput industries, where
 behavioural assumptions such as cost minimization or profit maximization,
 are unlikely to be applicable. Using annual data on 17 railways companies
 during 1988-1993, multioutput distance functions are estimated using
 corrected ordinary least squares (COLS). The resulting technical
 efficiency estimates range from 0.980 for the Netherlands to 0.784 for
 Italy, with a mean of 0.863. The distance function results are also
 compared with those obtained from single-output production functions,
 where aggregate output measures are formed using either total revenue or a
 Tornqvist index. The results obtained indicate substantial differences in
 parameter estimates and technical efficiency rankings, casting significant
 doubt upon the reliability of these single-output models, particularly
 when a total revenue measure is used to proxy aggregate output. 
Journal: Applied Economics 
Pages: 1967-1976 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155896 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155896 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1967-1976




Template-Type: ReDIF-Article 1.0
Author-Name: Jalal Siddiki 
Author-X-Name-First: Jalal 
Author-X-Name-Last: Siddiki 
Title: Demand for money in Bangladesh: a cointegration analysis 
Abstract:
  The aim of this study is to estimate the demand for real broad (M2) money
 in Bangladesh using the most recently developed autoregressive distributed
 lag approach to cointegration analyses. The empirical results show that
 there is a unique cointegrated and stable long-run relationship among real
 per capita broad money demand, real per capita income, domestic interest
 rates and unofficial exchange rate (UM) premiums which act as a surrogate
 for foreign interest rates. With money as the dependent variable, the
 results show that the income and interest elasticities are positive while
 the UM premium elasticity is negative. These results suggest that
 distortions in the financial and foreign exchange markets should be
 reduced in order to increase financial saving or monetary accumulation.
 Our results also reveal that the demand for money in Bangladesh is stable
 despite the changes in financial and exchange rate policies between 1975
 and 1995. 
Journal: Applied Economics 
Pages: 1977-1984 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155904 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155904 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1977-1984




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Burton 
Author-X-Name-First: Michael 
Author-X-Name-Last: Burton 
Author-Name: Richard Dorsett 
Author-X-Name-First: Richard 
Author-X-Name-Last: Dorsett 
Author-Name: Trevor Young 
Author-X-Name-First: Trevor 
Author-X-Name-Last: Young 
Title: An investigation of the increasing prevalence of nonpurchase of meat by British households 
Abstract:
  The purpose of the analysis has been to investigate the determinants of
 the household's decisions regarding the purchase of meat in Great Britain.
 The approach, using a Box-Cox generalization of the 'double hurdle' model,
 has depicted the household making two choices, namely whether or not to
 purchase the product (the participation decision) and then, for those
 households which do purchase, how much to buy (the expenditure decision).
 The determinants considered are socioeconomic variables, such as the total
 expenditure of the household, market prices, characteristics of the
 householder (age, gender, education, type of employment) and
 characteristics of the household (location, presence of children, etc.).
 By conducting the analysis over several years of survey data (1975-1993)
 it is possible to investigate whether the influence of these variables has
 changed over time. The bulk of the empirical analysis has concerned single
 adult households (with or without children). 
Journal: Applied Economics 
Pages: 1985-1991 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155913 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155913 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1985-1991




Template-Type: ReDIF-Article 1.0
Author-Name: Kerry Patterson 
Author-X-Name-First: Kerry 
Author-X-Name-Last: Patterson 
Title: Finite sample bias of the least squares estimator in an AR(p) model: estimation, inference, simulation and examples 
Abstract:
  This paper shows that the first order bias of least squares estimators of
 the coefficients of an AR(p) model is important for 'typical'
 macroeconomic time series and proposes a simple to apply method of bias
 reduction. Biases in individual coefficients often cumulate in the sum
 with far-reaching consequences for the cumulative impulse response
 function. This function, being nonlinear in the underlying coefficients,
 is particularly sensitive to biases when, as is often the case, the shocks
 are long-lived. Simulations and examples demonstrate some of the
 magnitudes involved. 
Journal: Applied Economics 
Pages: 1993-2005 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155922 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155922 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1993-2005




Template-Type: ReDIF-Article 1.0
Author-Name: Renuka Mahadevan 
Author-X-Name-First: Renuka 
Author-X-Name-Last: Mahadevan 
Title: How technically efficient are Singapore's manufacturing industries? 
Abstract:
  This study attempts to understand the technical efficiency performance
 (i.e. how well resources and given technology are being used) in 28
 manufacturing industries in Singapore from 1975-1994, using an improved
 version of the stochastic frontier model. In addition, an analytical model
 is used to investigate the causes of technical inefficiency in these
 industries to help policy formulation. The efficiency performance of
 foreign and local-dominated industries is also closely examined. 
Journal: Applied Economics 
Pages: 2007-2014 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155931 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155931 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:2007-2014




Template-Type: ReDIF-Article 1.0
Author-Name: Phil Shackley 
Author-X-Name-First: Phil 
Author-X-Name-Last: Shackley 
Author-Name: Cam Donaldson 
Author-X-Name-First: Cam 
Author-X-Name-Last: Donaldson 
Title: Willingness to pay for publicly-financed health care: how should we use the numbers? 
Abstract:
  This paper addresses the question of how willingness to pay (WTP) values
 in health care evaluation can be used by policy makers. The way in which
 WTP values are used depends on from whom values are elicited and whether
 the good concerned is privately-financed or publicly-financed through
 taxation. Thus, four possible uses of WTP values are identified. The focus
 is on the two uses which arise in the publiclyfinanced situation.
 'Conventional' use of WTP values, where the decision as to whether or not
 to provide a service depends upon whether or not WTP values are greater
 than total cost, applies only in the privately-financed, and not
 publiclyfinanced situations. The situations with publicly-financed goods
 are more complex. The use of WTP values for publicly-financed goods is
 justified and illustrated. 
Journal: Applied Economics 
Pages: 2015-2021 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155940 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:2015-2021




Template-Type: ReDIF-Article 1.0
Author-Name: R. Keith Schwer 
Author-X-Name-First: R. Keith 
Author-X-Name-Last: Schwer 
Author-Name: Rennae Daneshvary 
Author-X-Name-First: Rennae 
Author-X-Name-Last: Daneshvary 
Title: Tipping participation and expenditures in beauty salons 
Abstract:
  Research on tipping has been limited to restaurants, tourism and taxis.
 This study investigates the economic and demographic factors that
 influence whether a person tips and the amount tipped for a haircut in a
 beauty salon. Using a two-step model, it is found that both economic and
 demographic factors influence tipping behaviour. A person is more likely
 to tip if he/she has long hair, attends to grooming on a frequent basis,
 has a lower income, and is male. Price, gender, age, and the use of
 appointments are factors that influence the amount that one tips. 
Journal: Applied Economics 
Pages: 2023-2031 
Issue: 15 
Volume: 32 
Year: 2000 
X-DOI: 10.1080/00036840050155959 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155959 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:2023-2031




Template-Type: ReDIF-Article 1.0
Author-Name: Vania Sena 
Author-X-Name-First: Vania 
Author-X-Name-Last: Sena 
Title: The Generalized Malmquist index and capacity utilization change: an application to the Italian manufacturing, 1989-1994 
Abstract:
  Several indices of plant capacity utilization based on the concept of
 best practice frontier have been proposed in the literature (Fare et al.
 1992; De Borger and Kerstens, 1998). This paper suggests an alternative
 measure of capacity utilization change based on Generalized Malmquist
 index, proposed by Grifell-Tatje' and Lovell in 1998. The advantage of
 this specification is that it allows the measurement of productivity
 growth ignoring the nature of scale economies. Afterwards, this index is
 used to measure capacity change of a panel of Italian firms over the
 period 1989-94 using Data Envelopment Analysis and then its abilities of
 explaining the short-run movements of output are assessed. 
Journal: Applied Economics 
Pages: 1-9 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122173 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122173 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:1-9




Template-Type: ReDIF-Article 1.0
Author-Name: Satya Paul 
Author-X-Name-First: Satya 
Author-X-Name-Last: Paul 
Author-Name: Ahmad Assadzadeh 
Author-X-Name-First: Ahmad 
Author-X-Name-Last: Assadzadeh 
Title: Empirical earnings functions for Iran 
Abstract:
  Some recent studies have debated the appropriateness of semi-log earnings
 function in approximating actual earnings profiles. This study contributes
 further to this debate by estimating four specifications of earnings
 function, namely, semi-log quadratic, semi-log cubic, quadratic and cubic
 with cross section data for 4035 full-time urban male earners in Iran for
 1993. The analysis shows that the semi-log quadratic earnings function
 fits the actual empirical earnings profiles very poorly. The quadratic
 earnings function provides a much better approximation to the actual
 earnings. Measures of out-of-sample prediction errors also show the
 superiority of quadratic function over others. 
Journal: Applied Economics 
Pages: 11-21 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122017 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:11-21




Template-Type: ReDIF-Article 1.0
Author-Name: Chaoshin Chiao 
Author-X-Name-First: Chaoshin 
Author-X-Name-Last: Chiao 
Title: The relationship between R&D and physical investment of firms in science-based industries 
Abstract:
  This study is motivated by the one-way-inducement hypothesis that R&D
 induces (Granger-causes) physical investment, but physical investment does
 not induce R&D, raised by Lach and Schankerman (1989) and Lach and Rob
 (1996). It is demonstrated that their results do not hold, after extending
 the sample that matches their criteria by including more time periods
 and/or more firms. Namely, it is found that the Granger causality between
 R&D and physical investment occurs both ways. It is also shown that their
 contemporary relationship, derived by dynamic simultaneous expressions, is
 positive in both ways, from current R&D to current physical investment and
 from current physical investment to current R&D. Moreover, previous R&D
 affects current physical investment, and previous physical investment also
 affects current R&D. 
Journal: Applied Economics 
Pages: 23-35 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/713758640 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713758640 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:23-35




Template-Type: ReDIF-Article 1.0
Author-Name: Suzanne Heller Clain 
Author-X-Name-First: Suzanne Heller 
Author-X-Name-Last: Clain 
Author-Name: Karen Leppel 
Author-X-Name-First: Karen 
Author-X-Name-Last: Leppel 
Title: An investigation into sexual orientation discrimination as an explanation for wage differences 
Abstract:
  This study explores the effects of sexual orientation on earnings. It is
 found that, ceteris paribus, men living with male partners tend to earn
 less than other men, and women living with female partners tend to earn
 more than other women. These earnings differentials tend to vary by
 region. They also vary by education and occupation for men, and with the
 presence of minor children for women. In addition, the age-earnings
 profiles of women living with female partners tend to be higher, flatter,
 and less concave than those of other women. 
Journal: Applied Economics 
Pages: 37-47 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122961 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122961 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:37-47




Template-Type: ReDIF-Article 1.0
Author-Name: Reginald Darius 
Author-X-Name-First: Reginald 
Author-X-Name-Last: Darius 
Title: Debt neutrality: theory and evidence from developing countries 
Abstract:
  This paper reviews the Ricardian-Barro hypothesis and tests the basic
 postulate of the model for a sample of developing countries including
 Mexico and Venezuela. Two specifications are utilized, the first is based
 on the simple consumption model associated with the work of Kormendi
 (1983). The alternative is based on a model developed by Haque and Montiel
 (1987). The outcome of the two-stage least square estimation technique
 rejected the hypothesis in Mexico, Trinidad and Tobago and Venezuela, all
 countries, which underwent adjustment programmes. However these results
 were reversed when the alternative model was utilized due to liquidity
 constraint and possibly the Yaari-Blanchard effect. The contradictory
 outcome alludes to the sensitivity of the results to the model specified. 
Journal: Applied Economics 
Pages: 49-58 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:49-58




Template-Type: ReDIF-Article 1.0
Author-Name: Allan Layton 
Author-X-Name-First: Allan 
Author-X-Name-Last: Layton 
Author-Name: Masaki Katsuura 
Author-X-Name-First: Masaki 
Author-X-Name-Last: Katsuura 
Title: A new turning point signalling system using the Markov switching model with application to Japan, the USA and Australia 
Abstract:
  A new business cycle turning point signalling system is proposed and
 examined by using Japanese, US and Australian composite indexes of
 economic activity. Time varying transition probabilities in a Markov
 regime-switching model are used as the basis of the signalling system. The
 performance of the system is satisfactory, though its reliability varies
 between peaks and troughs and across countries. Based on data up until May
 1998, the system suggests the absence of turning points in any of the
 three countries in 1998. 
Journal: Applied Economics 
Pages: 59-70 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121698 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121698 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:59-70




Template-Type: ReDIF-Article 1.0
Author-Name: Quinn Weninger 
Author-X-Name-First: Quinn 
Author-X-Name-Last: Weninger 
Title: An analysis of the efficient production frontier in the fishery: implications for enhanced fisheries management 
Abstract:
  The transformation relationship between factor inputs and outputs - the
 efficient production frontier (EPF)- contains important information for
 fisheries managers. A directional technology distance function model of
 the harvesting technology is used to measure changes in the EPF over time.
 Frontier shifts are summarized with input- and output-based frontier
 indicators that are interpreted as measures of bioeconomic productivity
 change. The model is applied to the Mid-Atlantic surf clam and ocean
 quahog fishery. 
Journal: Applied Economics 
Pages: 71-79 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122937 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122937 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:71-79




Template-Type: ReDIF-Article 1.0
Author-Name: Ju-Chin Huang 
Author-X-Name-First: Ju-Chin 
Author-X-Name-Last: Huang 
Title: Precision of dichotomous choice contingent valuation welfare measures: some simulation results 
Abstract:
  The purpose of this research is to examine the roles of individuals'
 heterogeneous economic factors and model misspecification in dichotomous
 choice contingent valuation welfare measurement. Willingness to pay for an
 improvement of environmental quality is studied. Simulation results
 indicate that the precision of welfare estimates increases with
 individuals' income levels and decreases with the price of the
 quality-related good. The dependence of the consumption of the
 quality-related good on the environmental quality also affects the
 reliability of welfare estimates. 
Journal: Applied Economics 
Pages: 91-101 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122344 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122344 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:91-101




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Title: Nominal and real effective exchange rates of middle eastern countries and their trade performance 
Abstract:
  Indexes of real and nominal effective exchange rates that are published
 by the IMF, are mostly for industrial countries. None of the Middle
 Eastern countries have received any attention on this regard. This paper
 tries to close the gap by constructing such indexes for 11 middle eastern
 countries over 1971(I)-1994(IV) period. As an application, long-run
 response of their trade balance to devaluation is also investigated. 
Journal: Applied Economics 
Pages: 103-111 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122490 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122490 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:103-111




Template-Type: ReDIF-Article 1.0
Author-Name: Kare Johansen 
Author-X-Name-First: Kare 
Author-X-Name-Last: Johansen 
Author-Name: Kristen Ringdal 
Author-X-Name-First: Kristen 
Author-X-Name-Last: Ringdal 
Author-Name: Thortle Th&#xf8;ring 
Author-X-Name-First: Thortle 
Author-X-Name-Last: Th&#xf8;ring 
Title: Firm profitability, regional unemployment and human capital in wage determination 
Abstract:
  This paper presents an analysis of wage formation in the Norwegian
 private sector using data for individual workers matched with firm level
 information and regional unemployment. A key issue is to test whether or
 not firm specific variables affect individual wages after controlling for
 individual specific factors and working conditions. The results imply
 positive effects of firm specific profitability and firm size. The
 elasticity of wages with respect to value added per worker and firm size
 is 5% and 3.3%, respectively. Empirical evidence of a downward sloping
 regional wage curve is also reported, while there is no support of the
 hypothesis of compensating wage differentials. Since data for three levels
 of aggregation are used, the OLS estimates of the standard errors are
 downward biased. Therefore, results using a random effects model are also
 reported, taking the multi-level structure of the data into account. 
Journal: Applied Economics 
Pages: 113-121 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122818 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122818 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:113-121




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Sanjuan 
Author-X-Name-First: Ana 
Author-X-Name-Last: Sanjuan 
Author-Name: Jose Gil 
Author-X-Name-First: Jose 
Author-X-Name-Last: Gil 
Title: Price transmission analysis: a flexible methodological approach applied to European pork and lamb markets 
Abstract:
  The study of spatial price relationships helps to explain market
 performance and their degree of integration. Applying only one method of
 analysis may not be flexible enough to account for the complex
 interactions of prices in separated markets. This paper complements usual
 cointegration tests with a description of dynamic features and patterns of
 causality among price series. The method proposed is applied to study
 spatial pork and lamb prices relationships within the EU in the period
 1988-1995. The results indicate that European markets for both commodities
 are integrated, not only in the long run but in the short run as well,
 although the price transmission process is more efficient in the porkmeat
 industry. 
Journal: Applied Economics 
Pages: 123-131 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122171 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122171 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:123-131




Template-Type: ReDIF-Article 1.0
Author-Name: Marta Sanmartin 
Author-X-Name-First: Marta 
Author-X-Name-Last: Sanmartin 
Title: Linearity of the return to education and self selection 
Abstract:
  This paper investigates the earnings-education profile in Spain. First no
 functional form is imposed on this relation but instead dummy variables
 are used for each year of education. Second, different alternatives are
 analysed until the best parametric form is found. Moreover problems
 related to the self selection of individuals and to the segmentation of
 the labour market based on the educational level are considered. The main
 results indicate that the effect of education on earnings is not
 significant until individuals finish secondary education and from there
 onwards the relationship can be considered linear. 
Journal: Applied Economics 
Pages: 133-142 
Issue: 1 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121772 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121772 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:133-142




Template-Type: ReDIF-Article 1.0
Author-Name: Francois-Charles Wolff 
Author-X-Name-First: Francois-Charles 
Author-X-Name-Last: Wolff 
Title: Private intergenerational contact in France and the demonstration effect 
Abstract:
  This study analyses motives for intergenerational contact from adult
 children to their middle-aged parents. If these transfers may be explained
 either by altruism or by exchange, we mainly focus on the demonstration
 effect where households take care of their own parents in order to elicit
 a future support from their children. We test the model using a
 cross-sectional survey from 1992 about private transfers in France.
 According to the data, the presence of children increases the amount of
 visits that respondents provide to their parents and the econometric
 results still hold after controlling for unobserved familial heterogeneity
 using fixed effects. Although this empirical evidence is consistent with
 the demonstration effect, we suggest an alternative interpretation for the
 positive correlation based on the care of grandchildren. 
Journal: Applied Economics 
Pages: 143-153 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122181 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122181 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:143-153




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Arango 
Author-X-Name-First: Luis 
Author-X-Name-Last: Arango 
Author-Name: Andres Gonzalez 
Author-X-Name-First: Andres 
Author-X-Name-Last: Gonzalez 
Title: Some evidence of smooth transition nonlinearity in Colombian inflation 
Abstract:
  Evidence of smooth transition autoregressive (STAR) representations is
 found in two, out of three, time series of different measures of annual
 inflation in Colombia during this decade for monthly data. The STAR-type
 nonlinearities are asymmetric for inflation computed as the variation of
 CPI while for (a measure of) core inflation are symmetric. Thus, LSTAR and
 ESTAR models were, respectively, estimated. No evidence of nonlinearity is
 found for traded goods inflation. Given the local dynamic properties of
 the estimated LSTAR model, only positive shocks to prices could shift
 negative accelerating inflation rate from the upper to the lower regime.
 By the same token, only stochastic shocks can move the core accelerating
 inflation rate from the outer regime to the middle one but the explosive
 nature of this regime will impulse the accelerating inflation rate to the
 outer one. 
Journal: Applied Economics 
Pages: 155-162 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122443 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122443 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:155-162




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Giuffrida 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Giuffrida 
Author-Name: Hugh Gravelle 
Author-X-Name-First: Hugh 
Author-X-Name-Last: Gravelle 
Title: Measuring performance in primary care: econometric analysis and DEA 
Abstract:
  We use data from the Health Service Indicators database to compare
 different methods of measuring the performance of English Family Health
 Services Authorities (FHSAs) in providing primary care. A variety of
 regression and data envelopment analysis methods are compared as summary
 efficiency measures of individual FHSA performance. The correlation of the
 rankings of FHSAs across DEA and regression methods, across two years of
 data and across three different specifications of the technology of
 primary care are examined. Efficiency scores are highly correlated within
 variants of the two methods, and across years for a given method. Inter
 method correlations are smaller and correlations across different
 specifications of the primary care production process are negligible and
 sometime negative. 
Journal: Applied Economics 
Pages: 163-175 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122522 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122522 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:163-175




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Podrecca 
Author-X-Name-First: Elena 
Author-X-Name-Last: Podrecca 
Author-Name: Gaetano Carmeci 
Author-X-Name-First: Gaetano 
Author-X-Name-Last: Carmeci 
Title: Fixed investment and economic growth: new results on causality 
Abstract:
  This study re-examines the issue of causality between investment shares
 and economic growth. A methodology is applied based on Arellano and Bond
 (1991), and Holtz-Eakin, Newey and Rosen (1988) to quinquennial panel data
 on growth and investment shares for the post war period and shows that,
 contrary to previous results in the literature, causality between fixed
 investment and growth runs in both directions. Investment shares
 Granger-cause growth rates and growth rates Granger-cause investment
 shares. Granger causality from investment shares to growth rates is found
 to be negative. The result is in contrast with a capital fundamentalist
 view which sees fixed investment as the key to long run growth, but is
 fully consistent with the predictions of Solow-type growth models. 
Journal: Applied Economics 
Pages: 177-182 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122890 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122890 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:177-182




Template-Type: ReDIF-Article 1.0
Author-Name: Guang Wan 
Author-X-Name-First: Guang 
Author-X-Name-Last: Wan 
Author-Name: Enjiang Cheng 
Author-X-Name-First: Enjiang 
Author-X-Name-Last: Cheng 
Title: Effects of land fragmentation and returns to scale in the Chinese farming sector 
Abstract:
  Using household survey data from rural China, economies of scale as
 measured by returns to scale and the effects of land fragmentation on crop
 outputs are examined. While these effects are found to be detrimental,
 statistically significant and substantial, existing economies of scale
 appear to be too small to suggest radical land policy changes in China. 
Journal: Applied Economics 
Pages: 183-194 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121811 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121811 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:183-194




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Martin 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Martin 
Title: The implications for the UK Exchequer of an ethical arms export policy 
Abstract:
  For the UK, defence exports provide many jobs but critics point to the
 morality and human rights aspects of the arms trade. Recent speeches by
 the foreign secretary suggest that Mr Cook is acutely aware of the
 trade-off between a more ethical arms export policy and jobs in the
 defence industry. Recent research suggests that government subsidies for
 arms exports cost the UK taxpayer between &#xa3;228 million and &#xa3;708
 million per annum. However, these figures ignore the Exchequer costs of
 the jobs lost as a result of the reduction in arms exports. This study
 uses information on the expected number of job losses, and the Exchequer
 cost per job destroyed, to estimate the employment costs to the Exchequer
 associated with a one-third reduction in UK defence exports. These costs
 are then subtracted from the subsidy savings to derive the overall net
 financial saving to the taxpayer for a one-third reduction in UK arms
 exports. 
Journal: Applied Economics 
Pages: 195-199 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121768 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121768 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:195-199




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Wheatley Price 
Author-X-Name-First: Stephen Wheatley 
Author-X-Name-Last: Price 
Title: The unemployment experience of male immigrants in England 
Abstract:
  In this paper the unemployment experience of immigrant men in the English
 labour market is examined, using 1993-1994 data from the Quarterly Labour
 Force Survey of the United Kingdom. Hypotheses proposed by Chiswick (1982)
 are investigated, for both the claimant count and the ILO measures of
 unemployment, using logistic regression analysis. Our results show that
 recent white and nonwhite immigrant men experience much higher levels of
 unemployment than earlier cohorts. For whites, this effect is transitory,
 whereas for nonwhites unemployment rates adjust more slowly as the
 duration of stay increases. Immigrant unemployment rates also vary
 considerably with country of birth. 
Journal: Applied Economics 
Pages: 201-215 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121911 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121911 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:201-215




Template-Type: ReDIF-Article 1.0
Author-Name: Sven-Olov Daunfeldt 
Author-X-Name-First: Sven-Olov 
Author-X-Name-Last: Daunfeldt 
Author-Name: Xavier De Luna 
Author-X-Name-First: Xavier 
Author-X-Name-Last: De Luna 
Title: The efficacy and cost of regime shifts in inflation policies-Evidence from New Zealand and Sweden 
Abstract:
  In this paper a comparative study of the regime shift in inflation
 policies in New Zealand and Sweden is performed. A nonparametric
 regression method is used to decompose the inflation time series into
 three components of variation: a long-term trend, a medium-term (cyclical
 and transient variations) trend and a short-term shocks component. This
 allows study of the transition process from the high inflation
 characterizing the end of the 1970s and the 1980s to the low inflation
 observed during the 1990s. It is found that in New Zealand, although it is
 initially delayed, the decrease in inflation happens at a faster pace than
 in Sweden. This may indicate that reforms were more efficient in New
 Zealand. A clear link is also shown between the rising unemployment and
 the transition from high to low inflation. Furthermore, while in New
 Zealand a downward adjustment of the unemployment rate happens directly
 after the transition period, in Sweden there seems to be persistence in
 high unemployment. 
Journal: Applied Economics 
Pages: 217-224 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121726 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121726 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:217-224




Template-Type: ReDIF-Article 1.0
Author-Name: Roy Batchelor 
Author-X-Name-First: Roy 
Author-X-Name-Last: Batchelor 
Title: How useful are the forecasts of intergovernmental agencies? The IMF and OECD versus the consensus 
Abstract:
  This study compares the accuracy and information content of economic
 forecasts for G7 countries made in the 1990s by the OECD and IMF. The
 benchmarks for comparison are the average forecasts of private sector
 economists published by Consensus Economics. With few exceptions, the
 private sector forecasts are less biased and more accurate in terms of
 mean absolute error and root mean square error. Formal tests show these
 differences are statistically significant for forecasts of real growth and
 production, less so for forecasts of inflation and unemployment. Overall,
 there appears little information in the OECD and IMF forecasts that could
 be used to reduce significantly the error in the private sector forecasts. 
Journal: Applied Economics 
Pages: 225-235 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121785 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121785 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:225-235




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Weber 
Author-X-Name-First: Christian 
Author-X-Name-Last: Weber 
Title: Alternative lag length selection criteria and the split-trend stationarity hypothesis 
Abstract:
  This study asks whether evidence that key macroeconomic time series are
 stationary around broken trends is robust to using different criteria to
 determine the lag length in the ADF regressions. When lag lengths are
 determined using the Schwarz criterion or two different
 specific-to-general methods, tests for unit roots in several series in the
 Nelson-Plosser (1982) data and in US postwar real GNP find weaker evidence
 against the unit root hypothesis than either Perron (1989), who set the
 date for the break in the trend a priori or Zivot and Andrews (1992), who
 determined the break date endogenously. 
Journal: Applied Economics 
Pages: 237-247 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121781 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121781 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:237-247




Template-Type: ReDIF-Article 1.0
Author-Name: Eleanor Doyle 
Author-X-Name-First: Eleanor 
Author-X-Name-Last: Doyle 
Title: Exchange rate volatility and Irish-UK trade, 1979-1992 
Abstract:
  This study examines how exchange-rate volatility affected Ireland's
 exports to its most important trading partner, the United Kingdom, from
 1979 to 1992. To ensure reliable inferences regarding income and price
 elasticities and the impact of exchange rate volatility on exports, the
 time series properties of the series used are investigated. The analysis
 here is conducted at both aggregate and 2-digit SITC Division levels since
 exchange rate volatility can reasonably be presumed to affect sectors
 differently. Since expectations matter for exchange rate determination
 real volatility was generated according to a first-order GARCH process.
 Both real and nominal volatility were important determinants for over 35%
 of Irish-UK trade, with positive effects predominating. This may be due to
 the nature of Irish firms operating in a small open economy where they
 have little option in dealing with increased exchange rate risk except to
 'weather the storm' for fear of losing market share or facing costs of
 either exit, re-entry, or both. 
Journal: Applied Economics 
Pages: 249-265 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122999 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122999 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:249-265




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Otero 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Otero 
Title: Coffee export booms and monetary disequilibrium: some evidence for Colombia 
Abstract:
  The theoretical models that analyse the monetary consequences of export
 booms show that under a regime of fixed exchange rates, they affect not
 only the demand for money, via real income, but also the money supply via
 foreign exchange accumulation. Within this theoretical framework, this
 study proposes an empirical approach to determine whether the coffee booms
 of the second half of the 1970s and mid-1980s led to excess money supply
 in the Colombian economy. The findings provide evidence in favour of a
 direct association between coffee export booms and excess money supply,
 implying that external disturbances jeopardize the ability of the economic
 authorities to carry out successful monetary policy. 
Journal: Applied Economics 
Pages: 267-276 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121935 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121935 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:267-276




Template-Type: ReDIF-Article 1.0
Author-Name: Pei-Ing Wu 
Author-X-Name-First: Pei-Ing 
Author-X-Name-Last: Wu 
Author-Name: Chu-Li Huang 
Author-X-Name-First: Chu-Li 
Author-X-Name-Last: Huang 
Title: Actual averting expenditure versus stated willingness to pay 
Abstract:
  The purpose of this study is to perform a complete comparison of actual
 averting expenditure and stated willingness to pay measures, and to
 determine if the averting expenditure is a lower bound of the willingness
 to pay measured from contingent valuation experiment as suggested by
 literature. In addition to the single value comparison, Bootstrap, Krinsky
 and Robb, Jackknife, and Cameron are four simulation methods used to
 calculate confidence intervals for response function. Sample sizes of 100,
 200, and 1000 are simulated 100 and 200 times respectively. A set of data
 with 540 households from a contingent policy referendum survey is employed
 for our purpose. Under a specific level of BOD improvement, a one-to-one
 single mean value comparison of the actual averting expenditure is greater
 than the mean willingness to pay from utility difference model. The
 empirical results are consistent with the theoretical expectation for
 expenditure difference that averting expenditure is a lower bound of
 willingness to pay generated from the contingent valuation method. A
 confidence interval, which contains the true mean willingness to pay at
 least 90% of the times, includes the actual averting expenditure as a
 lower bound of the mean willingness to pay as theory predicts. 
Journal: Applied Economics 
Pages: 277-283 
Issue: 2 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122947 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122947 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:277-283




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Falk 
Author-X-Name-First: Martin 
Author-X-Name-Last: Falk 
Author-Name: Bertrand Koebel 
Author-X-Name-First: Bertrand 
Author-X-Name-Last: Koebel 
Title: A dynamic heterogeneous labour demand model for German manufacturing 
Abstract:
  This study presents an application of the Generalized Error Correction
 Model (GECM) for heterogeneous factor demands based on the quadratic cost
 function., Using data for 26 West German manufacturing industries over the
 period 1976-1995, it turns out that less general specifications such as
 the partial adjustment and the static AR(1) model are rejected.,
 Furthermore, both short-run and long-run labour demands of different skill
 classes are inelastic., Unskilled labour is found to have a somewhat
 higher wage elasticity in absolute terms than medium-skilled labour., A
 small part of the shift in demand away from unskilled labour can be
 explained by the substitutability relationship between intermediate
 materials and unskilled labour., Between 6 and 13 percent of the observed
 shift towards high-skilled labour can be explained by capital
 accumulation., 
Journal: Applied Economics 
Pages: 339-348 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.,1080/00036840122012 
File-URL: http://www.tandfonline.com/doi/abs/10.,1080/00036840122012 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:339-348




Template-Type: ReDIF-Article 1.0
Author-Name: Li-Hsueh Chen 
Author-X-Name-First: Li-Hsueh 
Author-X-Name-Last: Chen 
Title: Inflation, real short-term interest rates, and the term structure of interest rates: a regime-switching approach 
Abstract:
  This study explores the implications of the expectations hypothesis by
 examining the implied term premium, in conjunction with an explicit
 description of processes generating both inflation and short-term real
 interest rates., It models inflation and short-term real interest rates
 using a technique that allows for changes in regimes and generates future
 forecasts of inflation and real interest rates., The hypothesis is that
 persistent shifts in the term premium under the expectations hypothesis
 might come from forecast errors by econometricians if regime shifts are
 omitted, shifts which are however observed by the agents., This study
 examines whether persistent shifts in the term premium can be eliminated
 after taking into account the regime shifts in the processes for inflation
 and real interest rates., The results indicate that there still exists
 persistence in the term premium., However the implied term premium
 generated from regime-switching models shows less persistence than those
 from ARIMA models., Although the regime-switching model does not reconcile
 the data with the expectations hypothesis, the results suggest that the
 persistence of the term premium obtained from a fixed-coefficient ARIMA
 model may be due in part to systematic forecast errors that are eliminated
 by allowing for regime changes., 
Journal: Applied Economics 
Pages: 393-400 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.,1080/00036840122884 
File-URL: http://www.tandfonline.com/doi/abs/10.,1080/00036840122884 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:393-400




Template-Type: ReDIF-Article 1.0
Author-Name: Kim Taegi 
Author-X-Name-First: Kim 
Author-X-Name-Last: Taegi 
Author-Name: Keun-Yeob Oh 
Author-X-Name-First: Keun-Yeob 
Author-X-Name-Last: Oh 
Title: Country size, income level and intra-industry trade 
Abstract:
  This study investigates three testable hypotheses of intra-industry
 trade., It begins by developing a theoretical, two country model., The
 model explicitly includes two goods: differentiated products and
 homogeneous goods., Then three empirical hypotheses are derived as
 follows., The share of intra-industry trade will be large: (a) if the two
 economies are of similar size, (b) if the capital-labour endowment ratio
 of both countries is similar, and (c) if the total size of the two
 economies is large., From the cross-sectional analysis using 1970-1994
 data, results are obtained that support the model., Furthermore, the
 results are confirmed using panel analysis on the pooled data., 
Journal: Applied Economics 
Pages: 401-406 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.,1080/00036840122211 
File-URL: http://www.tandfonline.com/doi/abs/10.,1080/00036840122211 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:401-406




Template-Type: ReDIF-Article 1.0
Author-Name: John Mullen 
Author-X-Name-First: John 
Author-X-Name-Last: Mullen 
Title: Long-run technical change and multifactor productivity growth in US manufacturing 
Abstract:
  This study utilizes a translog cost function to produce econometric
 estimates of the separate influences of technical change versus scale
 efficiency in contributing to multifactor productivity growth within the
 US manufacturing sector. The analysis generates (two-digit)
 industry-specific parameters that capture the effects of output versus
 time-related shifts in the cost function over the 1949-1991 period. Thus
 initial evidence concerning the relative importance of technical progress
 (versus 'scale') cannot be provided as a source of productivity gains
 within two-digit industries. The parametric estimates of total factor
 productivity growth are compared with existing Divisia measures to explore
 the shortcomings of the growth accounting technique. These long-run
 patterns hold implications for the productivity convergence hypothesis
 traced to knowledge spillovers between industries. 
Journal: Applied Economics 
Pages: 301-308 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121703 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121703 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:301-308




Template-Type: ReDIF-Article 1.0
Author-Name: Ides Nicaise 
Author-X-Name-First: Ides 
Author-X-Name-Last: Nicaise 
Title: Human capital, reservation wages and job competition: Heckman's lambda re-interpreted 
Abstract:
  This study integrates insights from three theories into a single model
 explaining the simultaneous distribution of employment and wages. Human
 capital theory is taken as the general framework, whereas search theory
 and the more recent 'crowding' or 'job competition' hypothesis are used to
 explain selectivity in employment and the resulting bias in wage
 regressions. An empirical test on Belgian data, using a two-stage
 probit-OLS model, indicates that the crowding theory dominates the search
 hypothesis for men. For women, it seems to be outweighed by relatively
 higher reservation wages, probably due to women's different behaviour with
 respect to family responsibilities. 
Journal: Applied Economics 
Pages: 309-315 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121810 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121810 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:309-315




Template-Type: ReDIF-Article 1.0
Author-Name: Jari Ritsila 
Author-X-Name-First: Jari 
Author-X-Name-Last: Ritsila 
Author-Name: Marko Ovaskainen 
Author-X-Name-First: Marko 
Author-X-Name-Last: Ovaskainen 
Title: Migration and regional centralization of human capital 
Abstract:
  The objective of the study is to analyse relationship between migration
 and the regional redistribution of human capital. The analysis follows the
 human capital approach that considers migration as a result of rational
 decision making and a utility maximization process. The emphasis is on the
 decision making of a potential migrant. The migration decision is assumed
 to be the outcome of personal, household and regional characteristics. The
 results of the study indicate the following. First, it supports the
 generally accepted hypothesis that the highly educated are more prone to
 move than the rest of the population. Second, the regional characteristics
 of both the origin area and the destination area also have a significant
 effect on migratory behaviour. Individuals are more likely to migrate from
 remote regions to centres of economic activity. Third, as a result of two
 previous findings, reallocation of human capital seems to be taking place
 in Finland. 
Journal: Applied Economics 
Pages: 317-325 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122485 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122485 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:317-325




Template-Type: ReDIF-Article 1.0
Author-Name: Peijie Wang 
Author-X-Name-First: Peijie 
Author-X-Name-Last: Wang 
Title: Property and the economy in the short-term and the long-run 
Abstract:
  This study inquires into the relationships between property and the
 economy in both short-term and long-run. It has been made evident that
 property is an integrated part of the economy and its performance is
 closely related to a variety of economic activities, especially the real
 sectors in the economy. Moreover, the relationships of property with other
 sectors in the economy are stronger in the long-run than that in the
 short-term, due to the long-run attribute of property development and
 investment. 
Journal: Applied Economics 
Pages: 327-337 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122756 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122756 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:327-337




Template-Type: ReDIF-Article 1.0
Author-Name: Ignacio Abasolo 
Author-X-Name-First: Ignacio 
Author-X-Name-Last: Abasolo 
Author-Name: Rob Manning 
Author-X-Name-First: Rob 
Author-X-Name-Last: Manning 
Author-Name: Andrew Jones 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Jones 
Title: Equity in utilization of and access to public-sector GPs in Spain 
Abstract:
  A framework is outlined for testing empirically whether utilization of
 and access to public-sector GPs in Spain in 1993 was consistent with the
 twin criteria of horizontal and vertical equity, where these are defined
 with respect to need. Vertical (horizontal) inequities in access are
 assessed by including interactions between determinants of access and need
 (non-need) variables in a utilization equation. Findings are consistent
 with the principle of vertical equity in the utilization of GP services,
 but are not consistent with horizontal equity. Travel time for individuals
 who did not visit their GP are imputed but it is not a significant
 determinant of utilization or access. However, caution is expressed when
 interpreting these findings, as they may be contaminated by biases arising
 from unit non-response, measurement error and simultaneity. The paper
 concludes with a set of recommendations for future studies. 
Journal: Applied Economics 
Pages: 349-364 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122511 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122511 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:349-364




Template-Type: ReDIF-Article 1.0
Author-Name: Yasuhide Tanaka 
Author-X-Name-First: Yasuhide 
Author-X-Name-Last: Tanaka 
Title: Employment tenure, job expectancy, and earnings profile in Japan 
Abstract:
  The purpose of this study is to examine the relationships between
 employment tenure and earnings profile in Japan. Since the Japanese labour
 market has recently experienced substantial changes, it is natural for the
 Japanese employment and compensation system to be influenced by such
 changes. In this study, the changes that have happened to the Japanese
 employment and compensation system in recent years have been considered
 empirically by focusing on the relationships between employment tenure and
 earnings profiles. To do this, a forward-looking variable called 'expected
 job tenure (or job expectancy)' is introduced and the effects of it on
 earnings profile. 
Journal: Applied Economics 
Pages: 365-374 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122873 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122873 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:365-374




Template-Type: ReDIF-Article 1.0
Author-Name: Jane Fry 
Author-X-Name-First: Jane 
Author-X-Name-Last: Fry 
Author-Name: Tim Fry 
Author-X-Name-First: Tim 
Author-X-Name-Last: Fry 
Author-Name: Keith McLaren 
Author-X-Name-First: Keith 
Author-X-Name-Last: McLaren 
Author-Name: Tanya Smith 
Author-X-Name-First: Tanya 
Author-X-Name-Last: Smith 
Title: Modelling zeroes in microdata 
Abstract:
  Although the literature contains a number of suggestions for dealing with
 problems caused by a preponderance of zero expenditure observations that
 frequently occur in micro level budget studies, in general, these
 suggestions seem to be either empirically intractable or theoretically
 unappealing. In this paper it is argued that a natural theoretical
 specification can be motivated by duality theory and that the statistical
 technique of compositional data analysis provides a corresponding
 complementary stochastic specification. The resulting model is a
 consistent theoretical and stochastic specification for handling the
 possibility of a zero demand over a range of expenditures and/or prices.
 The model is then applied to the 1988/89 Australian Household Expenditure
 Survey. 
Journal: Applied Economics 
Pages: 383-392 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122916 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:383-392




Template-Type: ReDIF-Article 1.0
Author-Name: Laurens Cherchye 
Author-X-Name-First: Laurens 
Author-X-Name-Last: Cherchye 
Title: Using data envelopment analysis to assess macroeconomic policy performance 
Abstract:
  It is common practice to summarize the macroeconomic performance of
 countries in terms of the four well-known dimensions captured by the magic
 diamond of the OECD. This study provides a comparison of several synthetic
 indicators that merge the four separate indicators into one single
 statistic. These indicators are inspired by Data Envelopment Analysis
 (DEA)-based models, which allow for unequal weighting of the different
 economic objectives. The calculated weights then act as proxies for the
 true policy priorities. Comparison of the models focuses on the underlying
 assumptions as well as on the empirical results they generate. 
Journal: Applied Economics 
Pages: 407-416 
Issue: 3 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:407-416




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Natke 
Author-X-Name-First: Paul 
Author-X-Name-Last: Natke 
Title: The firm demand for liquid assets in an inflationary environment 
Abstract:
  Measures of inflation and the price level are added to the standard model
 of liquid asset demand and estimated with cross-section data on Brazilian
 manufacturing firms over a four-year period characterized by substantial
 inflation (annual rates of 19, 23, 34 and 35%). Results indicate that
 economies of scale exist in a model that is stable over time. Interest
 rates have a strong and elastic impact on liquid asset demand when
 inflation is explicitly controlled for although this result is not
 consistent across all subsets of data used. The usual assumption of a
 unitary price level elasticity of liquid asset demand is rejected and
 firms appear to conserve on liquid asset holdings as the rate of inflation
 increases suggesting more careful management of payments flows. Some of
 these findings contradict those of Ungar and Zilberfarb (1980). There are
 also some difference in behaviour across ownership groups: Brazilian firms
 do not exhibit economies of scale while multinationals do; and Brazilian
 firms adjust actual to desired balances faster than multinational firms. 
Journal: Applied Economics 
Pages: 427-436 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122635 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122635 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:427-436




Template-Type: ReDIF-Article 1.0
Author-Name: Martyn Duffy 
Author-X-Name-First: Martyn 
Author-X-Name-Last: Duffy 
Title: Advertising in consumer allocation models: choice of functional form 
Abstract:
  This study investigates the empirical performance of four different
 functional forms for advertising-augmented consumer allocation models. The
 investigation is carried out within the context of the UK alcoholic drinks
 markets. The aims of the study are twofold: (i) to assess which of the
 four functional forms provides the best explanation of the data and may
 serve, therefore, as the most suitable framework for investigating
 advertising effects in these markets; and (ii) to consider whether the
 findings with regard to advertising effects are robust and consistent
 across model specifications. Advertising is found to have had no
 significant effect upon the 'product composition' or 'level' of total
 alcoholic drink consumption in the UK over the period from 1964 to 1996,
 and this result is robust with respect to variations in the specification
 of functional form. The consumption of alcoholic drink is affected by
 relative prices, total consumer budgeted expenditures and, to some extent,
 by autonomous shifts in tastes. The balance of the evidence from tests for
 functional form appeared to favour the Almost Ideal Demand system as a
 framework for investigating the influence of advertising and other factors
 on drink consumption. 
Journal: Applied Economics 
Pages: 437-456 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121721 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121721 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:437-456




Template-Type: ReDIF-Article 1.0
Author-Name: Michael McCann 
Author-X-Name-First: Michael 
Author-X-Name-Last: McCann 
Title: Cross-border acquisitions: the UK experience 
Abstract:
  This paper tests a composite empirical model of cross-border acquisitions
 involving UK firms between 1987-1995 using panel data analysis. The
 empirical model includes capital market variables and regulatory variables
 derived from the existing literature. The results show that models that
 explain cross-border acquisitions through capital market imperfections are
 not significant. Cross-border activity has a strong relationship with the
 level of the UK stock market suggesting that crossborder acquisitions are,
 in some part, an extension of domestic activity. Corporate tax
 differentials also have significant impact on activity. 
Journal: Applied Economics 
Pages: 457-461 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:457-461




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Sicilian 
Author-X-Name-First: Paul 
Author-X-Name-Last: Sicilian 
Author-Name: Adam Grossberg 
Author-X-Name-First: Adam 
Author-X-Name-Last: Grossberg 
Title: Investment in human capital and gender wage differences: evidence from the NLSY 
Abstract:
  This paper uses data from the National Longitudinal Survey of Youth
 (NLSY) to investigate gender differences in returns to various forms of
 human capital. Since the NLSY includes relatively detailed information
 regarding on- and off-the-job training, we place special emphasis on
 measuring gender differences in the incidence of and returns to formal
 post-school training. Also considered is the role of nonhuman capital
 factors such as industry and occupation in explaining the wage gap. It is
 found that about 60% of the gender wage gap in the sample is explained by
 mean differences in individual characteristics and market circumstances.
 This suggests a smaller role for discrimination in explaining the wage gap
 than previous research has found. The research indicates that training
 does not affect the gender wage gap. Also it is found that there is no
 statistically significant difference in the rate of return to other
 measures of human capital for women versus men. Our research suggests that
 the largest factors contributing to the wage gap are differences in the
 stocks of human capital for men and women, and differences in the
 distributions of men and women across industries and occupations. 
Journal: Applied Economics 
Pages: 463-471 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840123000 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840123000 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:463-471




Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Chung 
Author-X-Name-First: Sangho 
Author-X-Name-Last: Chung 
Title: The learning curve and the yield factor: the case of Korea's semiconductor industry 
Abstract:
  This article attempts to find out how the Korean economy has grown so
 rapidly in a short time span of less than 30 years. For that purpose, it
 focuses on the development of the Korean semiconductor industry-more
 specifically, the memory-chip segment of the industry-as a case in point.
 To test the hypothesis that the learning curve effects have been
 significant in the memory-chip industry, 'yield factor' (the ratio of
 sellable chips to total chips in a wafer) in semiconductor production is
 used as a measure of the learning progression. That is, by tracing how the
 yield factor for each generation of memory chips has increased, one is
 able to see how well the Korean chip makers have exploited the learning
 effects. This article improves the learning-by-doing modelling by
 introducing a richer set of yield data; and the unit of analysis employed
 throughout the article is at the firm level, which is not common in the
 literature dealing with East Asian development as well as the economics of
 technology, thus enhancing understanding of the industry dynamics. 
Journal: Applied Economics 
Pages: 473-483 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122474 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122474 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:473-483




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoming Li 
Author-X-Name-First: Xiaoming 
Author-X-Name-Last: Li 
Title: Government revenue, government expenditure, and temporal causality: evidence from China 
Abstract:
  Dissatisfied with little evidence provided on various hypotheses
 concerning the revenue-expenditure relation in China, this paper is an
 empirical endeavour to fill the gap through a battery of econometric tests
 for causality based on vector error correction and vector autoregression
 models. A more comprehensive testing strategy for unit roots and
 cointegration has been suggested, and a bidirectional causality pattern
 has been found in China's government finance. The paper thus concludes
 that attempts simply to change revenue or expenditure or both without
 taking into account of the interdependence between the two may be
 counter-productive, and the effects on aggregate demand of government
 debt-financing in the presence of inflation may not be as detrimental as
 some economists would expect. 
Journal: Applied Economics 
Pages: 485-497 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122982 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122982 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:485-497




Template-Type: ReDIF-Article 1.0
Author-Name: Pradeep Agrawal 
Author-X-Name-First: Pradeep 
Author-X-Name-Last: Agrawal 
Title: The relation between savings and growth: cointegration and causality evidence from Asia 
Abstract:
  The direction of causality between savings and growth remains unclear
 even though it is of critical importance for development policy. In this
 paper, Granger causality analysis is undertaken for seven Asian countries
 using the VECM (Engle and Granger) and VAR procedures. We find that in
 most cases, the direction of causality runs primarily from growth (or
 income) to savings, although in some countries, there is also evidence of
 a feedback effect from savings to income and growth. Thus, development
 policy should focus less on promoting high savings rates and more on
 promoting high growth rates. Estimation of the savings functions are
 presented using Engle and Granger's Static OLS and Stock and Watson's
 dynamic OLS (DOLS) procedures where appropriate. The high savings rates in
 Asia are found to be due to the high rate of growth of income per capita,
 declining shares of dependent population, and some special institutional
 features, such as the high central provident fund rates in Singapore.
 Interest rates are found to have little impact on savings. 
Journal: Applied Economics 
Pages: 499-513 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122210 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122210 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:499-513




Template-Type: ReDIF-Article 1.0
Author-Name: S. J. Erenburg 
Author-X-Name-First: S. J. 
Author-X-Name-Last: Erenburg 
Author-Name: David. Goebel 
Author-X-Name-First: David. 
Author-X-Name-Last: Goebel 
Title: The effects of the international-domestic interest rate gap on US output 
Abstract:
  This paper examines how the relationships linking money to real output
 are altered when an international-domestic interest rate gap is included
 in the model. The results indicate that both the international-domestic
 interest rate gap and term structure exert a statistically significant
 effect on real economic activity. In addition, fluctuations in these
 variables contain significant information about future changes in real
 output. An interesting finding is that while the term structure dominates
 the international-domestic interest rate gap when estimating the entire
 time period, 1970:1-1996:4, the international-domestic interest rate gap
 clearly dominates in the more recent time period, 1985:1-1996:4. 
Journal: Applied Economics 
Pages: 515-521 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122868 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122868 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:515-521




Template-Type: ReDIF-Article 1.0
Author-Name: Seung-Hoon Yoo 
Author-X-Name-First: Seung-Hoon 
Author-X-Name-Last: Yoo 
Author-Name: Seung-Jun Kwak 
Author-X-Name-First: Seung-Jun 
Author-X-Name-Last: Kwak 
Author-Name: Tai-Yoo Kim 
Author-X-Name-First: Tai-Yoo 
Author-X-Name-Last: Kim 
Title: Modelling willingness to pay responses from dichotomous choice contingent valuation surveys with zero observations 
Abstract:
  Modelling household behaviour with the data from dichotomous choice
 contingent valuation (DCCV) surveys is often complicated by zero
 willingness to pay (WTP) responses in the sample. To deal with the zero
 responses, a two-equation model is considered, which incorporates a
 two-level decision structure, a decision on whether to participate in
 having WTP and a decision on the WTP amount conditional on deciding to
 participate, and two separate stochastic processes that determine the
 probability and conditional level of WTP are featured. The model is
 empirically applied to household survey data, in which the DCCV questions
 concerned the benefits of air quality improvement in Korea. To put the
 issue of the two-equation model in perspective, this paper also
 experiments with economic and econometric specifications: utility
 theoretic restriction and heteroscedasticity. It is shown how failure to
 allow for the restriction distorts aggregate benefit estimates and the
 existence of heteroscedasticity in error term is found. 
Journal: Applied Economics 
Pages: 523-529 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122117 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122117 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:523-529




Template-Type: ReDIF-Article 1.0
Author-Name: Kausik Chaudhuri 
Author-X-Name-First: Kausik 
Author-X-Name-Last: Chaudhuri 
Title: Long-run prices of primary commodities and oil prices 
Abstract:
  Acutely volatile movements in primary commodity prices have drawn
 considerable interest from empirical researchers. Exports of these
 commodities account for the bulk of export earnings of developing
 countries. The traditional demand-based framework was unable to explain
 the marked deterioration in these prices during the 1980s. This paper
 tries to ascertain the role played by real oil prices in explaining the
 extremely volatile movements in real prices of primary commodities by
 taking into account oil price shocks over the period 1973-1996, using
 monthly data. Real primary commodity prices and real oil prices are
 cointegrated. Additionally, the error in the cointegrating relation
 stimulates real commodity price adjustment, not real oil price adjustment. 
Journal: Applied Economics 
Pages: 531-538 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122106 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122106 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:531-538




Template-Type: ReDIF-Article 1.0
Author-Name: Rudi Vander Vennet 
Author-X-Name-First: Rudi Vander 
Author-X-Name-Last: Vennet 
Title: The law of proportionate effect and OECD bank sectors 
Abstract:
  The paper investigates the growth dynamics of the bank sectors in the
 OECD area over the period 1985-1994 and examines whether the structural
 financial reforms of the late 1980s have affected their growth path. Based
 on a test of Gibrat's law of proportionate effect, it is found that the
 1985-89 period was characterized by size convergence, implying that
 smaller bank sectors were expanding more rapidly. However, in the
 1990-1994 period the pattern reversed to proportionate growth. The
 analysis of the determinants of bank market growth reveals that
 macroeconomic growth, operational bank efficiency, credit quality, and
 capitalization are the main drivers of bank industry growth. 
Journal: Applied Economics 
Pages: 539-546 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122263 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122263 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:539-546




Template-Type: ReDIF-Article 1.0
Author-Name: Susmita Dasgupta 
Author-X-Name-First: Susmita 
Author-X-Name-Last: Dasgupta 
Author-Name: Mainul Huq 
Author-X-Name-First: Mainul 
Author-X-Name-Last: Huq 
Author-Name: David Wheeler 
Author-X-Name-First: David 
Author-X-Name-Last: Wheeler 
Author-Name: Chonghua Zhang 
Author-X-Name-First: Chonghua 
Author-X-Name-Last: Zhang 
Title: Water pollution abatement by Chinese industry: cost estimates and policy implications 
Abstract:
  Factory-level data are used to estimate water pollution abatement costs
 for Chinese industry. Joint abatement cost functions are utilized which
 relate total costs to treatment volume and the simultaneous effect of
 reductions in suspended solids, chemical oxygen demand, biological oxygen
 demand and other pollutants. Tests of alternative functional forms suggest
 that a very simple (constant elasticity) model fits the data as well as a
 complex (translog) model, permitting sophisticated policy experiments with
 relatively simple calculations. From the results, the cost-effectiveness
 of current pollution control policy in China is analysed. Basic
 conclusions are (1) The benefits of stricter discharge standards should be
 weighed carefully against the costs. For the sample of 260 factories, a
 shift across the existing range of standards entails a present-value
 difference of US$330 million in abatement costs. (2) Emissions charges as
 low as US$1.00/ton would be sufficient to induce 80% abatement of
 suspended solids for cost-minimizing factories. Charges of US$3, US$15 and
 US$30 per ton would be sufficient to induce 90% abatement of TSS, COD and
 BOD. (3) The current regulatory system provides an economic incentive to
 abate by charging a levy on pollution in excess of the standard. However,
 the results suggest that changing to a full emissions charge system would
 greatly reduce overall abatement costs. For the 260 factories in the
 sample, the current overall abatement rate could be attained under a
 charge system at a reduced annual cost whose present value is US$344
 million. 
Journal: Applied Economics 
Pages: 547-557 
Issue: 4 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122068 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122068 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:547-557




Template-Type: ReDIF-Article 1.0
Author-Name: Ralph Bierlen 
Author-X-Name-First: Ralph 
Author-X-Name-Last: Bierlen 
Author-Name: Bruce Dixon 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Dixon 
Author-Name: Bruce Ahrendsen 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Ahrendsen 
Title: Cattle cycles: is there a role for a financial accelerator? 
Abstract:
  The hypotheses that endogenous credit constraints based on fluctuating
 asset values and cash flow prolong and accentuate US cattle cycles; and
 that more diversified cow-calf firms are less affected by this phenomenon
 are tested. Breeding cattle inventories are an interesting example to
 study credit constraints because they are among the most cyclical of
 economic time-series, firms have heterogeneous diversification levels, and
 they avoid many of the problems with previous investment-cash flow
 sensitivities studies noted by Kaplan and Zingales. The results are
 consistent with earlier credit constraint studies, i.e. breeding cattle
 inventories are sensitive to shifting credit constraint regimes and
 cow-calf firms with higher diversification levels are less affected by
 credit constraints. 
Journal: Applied Economics 
Pages: 559-568 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:559-568




Template-Type: ReDIF-Article 1.0
Author-Name: Dale Cloninger 
Author-X-Name-First: Dale 
Author-X-Name-Last: Cloninger 
Author-Name: Roberto Marchesini 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Marchesini 
Title: Execution and deterrence: a quasi-controlled group experiment 
Abstract:
  Using portfolio analysis in a type of controlled group experiment, this
 study develops an empirical model of homicide changes in Texas over a
 period of a 'normal' number of executions. The empirically derived model
 then estimates the changes in the number of homicides in Texas (1) over a
 period of near zero executions and; (2) over an immediate subsequent
 period of double the 'normal' number of executions. The actual changes in
 Texas homicides over the first period is less than estimated by the model
 and greater (or no different) than estimated by the model in the second
 period. Because changes in the number of homicides in Texas and throughout
 the United States were negative over both periods, these empirical results
 are consistent with the deterrence hypothesis. That is, there were a
 greater than predicted number of homicides in the first period and fewer
 than predicted number in the second period. 
Journal: Applied Economics 
Pages: 569-576 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122871 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122871 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:569-576




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses 
Author-X-Name-First: Philip Hans 
Author-X-Name-Last: Franses 
Title: How to deal with intercept and trend in practical cointegration analysis? 
Abstract:
  This note gives a few practical guidelines for cointegration analysis.
 The focus is on testing the cointegration rank in a VAR model and on how
 an intercept and a trend should be incorporated in the testing model. Only
 two cases appear relevant for most economic data. 
Journal: Applied Economics 
Pages: 577-579 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121713 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121713 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:577-579




Template-Type: ReDIF-Article 1.0
Author-Name: Helmut Hofer 
Author-X-Name-First: Helmut 
Author-X-Name-Last: Hofer 
Author-Name: Karl Pichelmann 
Author-X-Name-First: Karl 
Author-X-Name-Last: Pichelmann 
Author-Name: Andreas-Ulrich Schuh 
Author-X-Name-First: Andreas-Ulrich 
Author-X-Name-Last: Schuh 
Title: Price and quantity adjustments in the Austrian labour market 
Abstract:
  Austria is among the very few countries in the European Union which have
 managed to maintain comparatively low unemployment rates and high
 employment rates. This study looks at the price and quantity adjustment
 mechanisms in the Austrian labour market which may have contributed to
 this favourable outcome. After reviewing briefly the basic theoretical
 reasoning an empirical investigation is began into gross flow dynamics in
 the labour market and the cyclical volatility of employment and
 unemployment in Austria. In international comparison Austrian unemployment
 is very stable over the business cycle. This is due mainly to the high
 sensitivity of the labour force on cyclical conditions and, partly, also
 on the relatively weak responsiveness of employment to cyclical
 fluctuations in output, the latter being possibly attributable to the high
 degree of real wage flexibility in Austria. The study proceeds to show
 that the long-run elasticity of wages with respect to unemployment is
 indeed quite high in Austria. However, evidence was also found for
 outsider effects in the Austrian wage setting process. Relative wage
 structures, on the other hand, appear to be rather rigid. 
Journal: Applied Economics 
Pages: 581-592 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122962 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122962 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:581-592




Template-Type: ReDIF-Article 1.0
Author-Name: Donald Cymrot 
Author-X-Name-First: Donald 
Author-X-Name-Last: Cymrot 
Author-Name: James Dunlevy 
Author-X-Name-First: James 
Author-X-Name-Last: Dunlevy 
Author-Name: William Even 
Author-X-Name-First: William 
Author-X-Name-Last: Even 
Title: 'Who's on first': an empirical test of the Coase Theorem in baseball 
Abstract:
  Because of their highly developed skills, major league baseball players
 generate significant economic rents. According to the 'weak version' of
 the Coase theorem, the allocation of these players is independent of who
 controls the rights to these rents, which depends on the rules governing
 competition in the baseball labour market. The rules of Major League
 Baseball establish a dual system. For senior players the market is
 competitive, and players have the right of 'free agency,' allowing them to
 attempt to contract with the team of their choice; for players with fewer
 years of experience the market is monopsonistic, and a player's right to
 play baseball is owned by his current team. Consequently, we
 simultaneously observe two different allocations of property rights. Using
 individual player data for 1979 and 1980 we test whether baseball player
 movement is independent of the ownership of these rents. We estimate the
 wage (marginal revenue) determination process for free-agent and non free
 agent movers and non-movers. This permits us to generate expected gains
 from a move for both free-agent eligible and non free-agent eligible
 players. Coase's theorem is tested by determining if both player types,
 and, hence, player allocation, are equally responsive to gains from
 migration. 
Journal: Applied Economics 
Pages: 593-603 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122414 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122414 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:593-603




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Hinks 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Hinks 
Author-Name: Duncan Watson 
Author-X-Name-First: Duncan 
Author-X-Name-Last: Watson 
Title: A multinomial logit nondiscriminatory approach to estimating racial wage and occupational discrimination 
Abstract:
  This paper combines a technique to measure nondiscriminatory wage
 structures with a multinomial logit model to estimate both occupational
 racial discrimination and within-occupation racial wage underpayment and
 overpayment. Using a recent South African October Household Survey it is
 found that racial discrimination against blacks and in favour of whites
 still persists in the South African labour market, implying the
 persistence of white employer nepotism and/or white employee
 discrimination. 
Journal: Applied Economics 
Pages: 605-612 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122869 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122869 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:605-612




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Zaghini 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Zaghini 
Title: Fiscal adjustments and economic performing: a comparative study 
Abstract:
  The empirical relationship among fiscal contractions, permanent
 improvement in public finances and short-run economic performance is
 examined using a sample of 14 European countries over the last three
 decades. The actual experience of policy-making has taught that only the
 adjustments that relied heavily on primary expenditure cuts and were
 implemented over a relatively long time span were able to achieve a long
 lasting reduction of public liabilities. Indeed, during these
 consolidations, tax increase amounted to a small fraction of the total
 adjustment. Furthermore, though they unfolded over a longer period with
 respect to the unsuccessful ones, the overall budget cut was not larger.
 As regards the macroeconomic impact, successful episodes tended to be
 associated with improved economic performance. During the adjustment
 period and in the following two years, the economies experienced strong
 consumption and investment growth, reduced unemployment, better
 international competitiveness and falling interest rates. This empirical
 evidence is here interpreted via the theory known as expectation view of
 fiscal policy. 
Journal: Applied Economics 
Pages: 613-624 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122700 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122700 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:613-624




Template-Type: ReDIF-Article 1.0
Author-Name: Vinish Kathuria 
Author-X-Name-First: Vinish 
Author-X-Name-Last: Kathuria 
Title: Foreign firms, technology transfer and knowledge spillovers to Indian manufacturing firms: a stochastic frontier analysis 
Abstract:
  This paper uses techniques from a stochastic production frontier (i.e.,
 the best practice technology used in the industry vis-a-vis average
 practised technology) and panel data literature to test for the spillover
 hypothesis that 'presence of foreign-owned firms and disembodied
 technology import in a sector leads to higher productivity growth for
 domestic firms'. The study uses panel data for 368 medium and largesized
 Indian manufacturing firms for the period 1975-1976 to 1988-1989. The
 results indicate that there exists positive spillovers from the presence
 of foreign-owned firms but the nature and type of spillovers vary
 depending upon the industries to which the firms' belong. There exist
 significant positive spillovers for the domestic firms belonging to the
 'scientific' subgroup provided the firms themselves possess significant
 R&D capabilities. However, for the 'non-scientific' subgroup presence of
 foreign firms itself forces the local firms to be more productive by
 inducing greater competition. However, the results change marginally when
 the initial level of productivity (i.e. the technology-gap) is considered. 
Journal: Applied Economics 
Pages: 625-642 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121940 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:625-642




Template-Type: ReDIF-Article 1.0
Author-Name: Ulf-G. Gerdtham 
Author-X-Name-First: Ulf-G. 
Author-X-Name-Last: Gerdtham 
Author-Name: Mickael Lothgren 
Author-X-Name-First: Mickael 
Author-X-Name-Last: Lothgren 
Title: Health system effects on cost efficiency in the OECD countries 
Abstract:
  This paper investigates the effects of different health systems on cost
 efficiency in inpatient health care among the OECD countries. The results
 indicate that public contract systems are more efficient and that public
 integrated systems are less efficient than public reimbursement systems. 
Journal: Applied Economics 
Pages: 643-647 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121897 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121897 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:643-647




Template-Type: ReDIF-Article 1.0
Author-Name: Michael McPherson 
Author-X-Name-First: Michael 
Author-X-Name-Last: McPherson 
Author-Name: Michael Redfearn 
Author-X-Name-First: Michael 
Author-X-Name-Last: Redfearn 
Author-Name: Margie Tieslau 
Author-X-Name-First: Margie 
Author-X-Name-Last: Tieslau 
Title: International trade and developing countries: an empirical investigation of the Linder hypothesis 
Abstract:
  This paper presents empirical evidence in support of the Linder
 hypothesis for five of the six East African developing countries studied
 here: Ethiopia, Kenya, Rwanda, Sudan and Uganda. This finding implies that
 these countries trade more intensively with others who have similar per
 capita income levels, as predicted by Linder. The contributions of this
 research are three-fold. First, new information is provided on the Linder
 hypothesis by focusing on developing countries. Second, this is one of
 very few analyses to capture both time-series and cross-section elements
 of the trade relationship by employing a panel data set. Third, the
 empirical methodology used in the analysis corrects a major shortcoming in
 the existing literature by using a censored dependent variable in
 estimation. 
Journal: Applied Economics 
Pages: 649-657 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122575 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122575 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:649-657




Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Curry 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Curry 
Author-Name: Peter Morgan 
Author-X-Name-First: Peter 
Author-X-Name-Last: Morgan 
Author-Name: Mick Silver 
Author-X-Name-First: Mick 
Author-X-Name-Last: Silver 
Title: Hedonic regressions: mis-specification and neural networks 
Abstract:
  There is an emerging literature in the field of hedonic regressions which
 successfully applies flexible functional forms. In contrast, numerous
 authors report hedonic regressions with relatively simple functions, often
 with little or no attempt to consider interaction terms and higher level
 powers. Such simple functions perform relatively well in spite of good a
 priori grounds for quite complex interaction effects. Indeed, the studies
 are characterised by a general indifference to testing these more flexible
 models, even when degrees of freedom permit. Using detailed scanner data,
 hedonic functions for the UK TV market are estimated and tested for
 interaction effects. For a case study of the market, higher level
 interaction effects are tested for and compare the results with those from
 a neural network, with its property of 'universal approximation'. The use
 of neural networks is particularly novel in this context and some general
 findings on their suitability emerge. 
Journal: Applied Economics 
Pages: 659-671 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122335 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122335 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:659-671




Template-Type: ReDIF-Article 1.0
Author-Name: Johan Lyhagen 
Author-X-Name-First: Johan 
Author-X-Name-Last: Lyhagen 
Title: The effect of precautionary saving on consumption in Sweden 
Abstract:
  Uncertainty concerning future income lowers consumption. This is often
 called the precautionary demand for savings. In this paper the existence
 of precautionary savings. In this paper the existence of precautionary
 saving is investigated using Swedish data for the years 1973-1992. As
 there are no variables for consumers' uncertainty a proxy is used.
 Assuming an underlying distribution of attitudinal data, a variance series
 is derived. Including the proxy in different specifications of the
 consumption function, indication of precautionary saving can be found. As
 a result, no uncertainty would raise consumption by 4.9%. 
Journal: Applied Economics 
Pages: 673-681 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122493 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122493 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:673-681




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Costa 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Costa 
Author-Name: Nuno Crato 
Author-X-Name-First: Nuno 
Author-X-Name-Last: Crato 
Title: Long-run versus short-run behaviour of the real exchange rates 
Abstract:
  This paper discusses the mean stationarity of real exchange rates by
 using new time series methods and new tests. The question whether the real
 exchange rates have a unit root or are level reverting is set in the
 general and flexible framework of fractionally integrated processes. The
 estimations and tests sustain the claim that real exchange rates may be
 nonstationary and not revert to any short-run parity. However, estimations
 also suggest that real exchange rates behave differently on the short and
 on the long run and that they may revert to parity in a century-long
 period. 
Journal: Applied Economics 
Pages: 683-688 
Issue: 5 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122409 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122409 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:683-688




Template-Type: ReDIF-Article 1.0
Author-Name: Teame Ghirmay 
Author-X-Name-First: Teame 
Author-X-Name-Last: Ghirmay 
Author-Name: Richard Grabowski 
Author-X-Name-First: Richard 
Author-X-Name-Last: Grabowski 
Author-Name: Subhash Sharma 
Author-X-Name-First: Subhash 
Author-X-Name-Last: Sharma 
Title: Exports, investment, efficiency and economic growth in LDC: an empirical investigation 
Abstract:
  This study seeks to analyse the relationship between exports and growth
 for 19 less-developed countries. It utilizes multivariate causality
 analysis based on the error correction model to address several important
 hypotheses. The results indicate that when exports have a causal influence
 in the development process that in general this is the result of their
 effect on both efficiency and accumulation. In addition, improvements in
 output and capital accumulation in an economy seem to have just as much of
 an influence on exports as exports have on output and capital
 accumulation. Finally, the growth process in East Asia seems to be quite
 different from that in Southeast Asia. 
Journal: Applied Economics 
Pages: 689-700 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122027 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:689-700




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick McCarthy 
Author-X-Name-First: Patrick 
Author-X-Name-Last: McCarthy 
Author-Name: Wayne Talley 
Author-X-Name-First: Wayne 
Author-X-Name-Last: Talley 
Title: Safety investments, behaviours and injury severity 
Abstract:
  This study investigates whether recreational boating safety investments
 and behaviours of current interest are determinants of boating injury
 severity, and if so, their effects. An ordered probit analysis of
 1989-1993 boating accidents suggests that human capital investments in
 safety, in the form of operator boating experience and formal instruction,
 reduce both operator and passenger injury severity. Higher levels of
 operator (passenger) alcohol consumption increase operator (passenger)
 injury severity, but no relationship was found between operator alcohol
 consumption and passenger injury severity. At the time a trip is taken,
 wearing a flotation device has the most efficacious effect on both
 operator and passenger injury severity. In general, the results support
 regulatory policies aimed at increasing the use of personal flotation
 devices as well as reducing alcohol consumption. 
Journal: Applied Economics 
Pages: 701-710 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121835 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121835 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:701-710




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Brooks 
Author-X-Name-First: Chris 
Author-X-Name-Last: Brooks 
Author-Name: Sotiris Tsolacos 
Author-X-Name-First: Sotiris 
Author-X-Name-Last: Tsolacos 
Title: Linkages between property asset returns and interest rates: evidence for the UK 
Abstract:
  This paper considers the effect of short- and long-term interest rates,
 and interest rate spreads upon real estate index returns in the UK. Using
 Johansen's vector autoregressive framework, it is found that the real
 estate index cointegrates with the term spread, but not with the short or
 long rates themselves. Granger causality tests indicate that movements in
 short term interest rates and the spread cause movements in the returns
 series. However, decomposition of the forecast error variances from VAR
 models indicate that changes in these variables can only explain a small
 proportion of the overall variability of the returns, and that the effect
 has fully worked through after two months. The results suggest that these
 financial variables could potentially be used as leading indicators for
 real estate markets, with corresponding implications for return
 predictability. 
Journal: Applied Economics 
Pages: 711-719 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122812 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122812 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:711-719




Template-Type: ReDIF-Article 1.0
Author-Name: Sucharita Ghosh 
Author-X-Name-First: Sucharita 
Author-X-Name-Last: Ghosh 
Author-Name: Donald Lien 
Author-X-Name-First: Donald 
Author-X-Name-Last: Lien 
Title: Forecasting with preliminary data: a comparison of two methods 
Abstract:
  This study examines two alternate methods, a vector autoregression error
 correction model and a state space model, to forecast revised United
 States trade balance figures. Both these methods incorporate preliminary
 and revised trade data. The results obtained from these methods were
 compared to the benchmark forecasts generated by revised-data-only models.
 This Study finds that the state space model performs worse than the
 benchmark. The vector autoregression model performs better than the
 benchmark only in the one-step forecast. These results indicate that
 incorporating preliminary data may not be useful in forecasting the
 revised data. 
Journal: Applied Economics 
Pages: 721-726 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122370 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122370 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:721-726




Template-Type: ReDIF-Article 1.0
Author-Name: Pushkar Maitra 
Author-X-Name-First: Pushkar 
Author-X-Name-Last: Maitra 
Title: Is consumption smooth at the cost of volatile leisure? An investigation of rural India 
Abstract:
  This study examines the institutions in rural India that enable
 households to insure against unanticipated idiosyncratic shocks to income.
 Using a decentralized general equilibrium model it tests for consumption
 and leisure insurance against unanticipated income shocks. It is found
 that differential access to markets (particularly financial markets) force
 villagers to differ in their response to similar shocks. Medium and large
 farmers have unrestricted access to credit markets and are unaffected by
 unanticipated changes in household income. The small farmers are excluded
 from credit markets. However, some of the small farmers are able to insure
 consumption against unanticipated income shocks through compensating
 changes in labour market participation and reducing own farm work. 
Journal: Applied Economics 
Pages: 727-734 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122570 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:727-734




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Dirk Vlasblom 
Author-X-Name-First: Jan Dirk 
Author-X-Name-Last: Vlasblom 
Author-Name: Peter De Gijsel 
Author-X-Name-First: Peter 
Author-X-Name-Last: De Gijsel 
Author-Name: Jacques Siegers 
Author-X-Name-First: Jacques 
Author-X-Name-Last: Siegers 
Title: Taxes, female labour supply and household income: differences between the Netherlands and the Federal Republic of Germany 
Abstract:
  The article investigates the effect of taxes and social premiums on
 female labour supply and household income. A comparison is made between
 labour supply and household income between the Netherlands and the Federal
 Republic of Germany in 1992. A discrete choice model for labour supply is
 used in which taxes and social premiums are implicitly incorporated. As
 male labour supply is highly inelastic an individual, male chauvinist
 model is used. The estimated models are used to simulate the effect of the
 differences in the tax and social premium system on the differences in
 labour supply and income between both countries. The results indicate that
 labour force participation is higher the more individualized the system.
 The German system leads to a lower tax burden compared to the Dutch
 system. It is concluded that differences in the tax and social premium
 system between both countries have hardly any influence on the differences
 in the inequality of net household labour income. There is evidence that
 the German system leads to a slightly more unequal distribution of
 household income. It is also concluded that although the tax and social
 premium system does influence labour supply and income, it can be doubted
 whether these effects are substantial. 
Journal: Applied Economics 
Pages: 735-744 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121832 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121832 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:735-744




Template-Type: ReDIF-Article 1.0
Author-Name: Robyn Swift 
Author-X-Name-First: Robyn 
Author-X-Name-Last: Swift 
Title: Exchange rates and commodity prices: the case of Australian metal exports 
Abstract:
  Exporters of homogeneous commodities are usually regarded as 'price
 takers' who operate in perfectly competitive international markets, so
 that the pass-through of exchange rate changes to foreign-currency prices
 must be zero. However, many Australian commodities are subject to
 influences that may produce more complex pricing strategies, for example,
 markets in which Australia is a dominant exporter, or where there are few
 buyers and sellers due to the presence of large multi-national
 corporations. This study uses multivariate cointegration techniques to
 examine the pricing of Australian metal exports, with particular emphasis
 on the degree and timing of the pass-through of exchange rate and other
 changes. 
Journal: Applied Economics 
Pages: 745-753 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122525 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:745-753




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Ryan 
Author-X-Name-First: Michael 
Author-X-Name-Last: Ryan 
Title: Variance analysis, normed costs and public safety organizations 
Abstract:
  This study recognizes that public safety organizations, including
 military units and fire services as well as the police, will normally be
 budget constrained. It also recognizes that subunits of these
 organizations will not always be employed in their highest priority
 activities. With those perspectives the study shows how such organizations
 can optimally redistribute resources and reallocations of activities
 between units in response to variable demands simultaneously with the
 determination of optimizing norms for levels and costs of activities and
 for transfers of resources and activities between units. The study draws
 on the ideas of variance analysis from accounting and peak load pricing
 and duality from economics to derive optimizing levels of activity for
 subunits within an organization in response to varying demands on the
 resources and performance of the organization as a whole. It also provides
 a critique of the standard data envelopment analysis aproach to activity
 analysis on the grounds not only that that approach is not cost related,
 but also that it does not provide for the endogenous transfer of
 activities and resources between units. 
Journal: Applied Economics 
Pages: 755-762 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121862 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121862 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:755-762




Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Florkowski 
Author-X-Name-First: Wojciech 
Author-X-Name-Last: Florkowski 
Author-Name: Timothy Park 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Park 
Title: Promotional programmes and consumer purchasing decisions: pecan demand models 
Abstract:
  A generalized Heckman model of purchase decisions is estimated
 incorporating perceived consumer quality attributes, ease of purchase, and
 familiarity with marketing outlets as factors influencing pecan purchases.
 Economic implications for evaluating consumer purchase decisions and the
 design of commodity promotion programmes for the pecan industry are
 addressed. Key marketing variables such as the variety of uses for nut
 products, the number of outlets used to purchase pecans, and consumer
 perceptions of positive quality features of pecans are significant in
 promoting purchases. Applications of a trade-off analysis examine key
 variables considered by the pecan industry in developing promotional
 programmes both to stabilize pecan purchases and to maintain the
 probability of pecan purchases. 
Journal: Applied Economics 
Pages: 763-770 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840151135319 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840151135319 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:763-770




Template-Type: ReDIF-Article 1.0
Author-Name: Julian Ramajo 
Author-X-Name-First: Julian 
Author-X-Name-Last: Ramajo 
Title: Time-varying parameter error correction models: the demand for money in Venezuela, 1983.I-1994.IV 
Abstract:
  The possibility of using time-varying parameter models in the context of
 error correction models is studied empirically. As an application, a money
 demand relationship (M1) for Venezuela is estimated from 1983 to 1994
 within a cointegrated VAR framework. First, the stochastic properties of
 the series are analysed, studying each corresponding order of integration.
 Second, the existence of a long-run stable relation between the variables
 involved has been investigated, and then the cointegration relation and
 the short-run adjustment mechanism estimated. As both relations are
 identified in the context of constant parameters a stability analysis is
 performed. Finally, the technique of Kalman filtering is used to estimate
 a model that permits the short-run parameters to vary, while the
 parameters of the long-run relation are kept constant. 
Journal: Applied Economics 
Pages: 771-782 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122141 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:771-782




Template-Type: ReDIF-Article 1.0
Author-Name: Yasuo Nakanishi 
Author-X-Name-First: Yasuo 
Author-X-Name-Last: Nakanishi 
Title: Dynamic labour demand using error correction model 
Abstract:
  Using a new econometric model, this study provides evidence that
 contradicts previous assertions about the Japanese labour market. The
 interrelationship between employment and hours of labour is stressed in
 this analysis by explicitly dividing labour input into both employment and
 labour hours. This model enables results to be obtained through both
 simulation and estimation, which allow measurement of adjustment speeds
 and elasticity in both employment and labour hours to wages. The results
 of the simulations are as follows. No apparent difference in adjustment
 speeds between employment and hours of labour was found. The adjustment of
 hours of labour is more cyclical and overshoots whereas that of employment
 is smoother. The adjustment speed of each simulation is slower than that
 found in most previous studies in the present long-run simulation. It is
 not as slow in the short-run and policy simulations. Therefore, adjustment
 speeds strongly depend on the method of simulation. 
Journal: Applied Economics 
Pages: 783-790 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121883 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121883 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:783-790




Template-Type: ReDIF-Article 1.0
Author-Name: Miki Kohara 
Author-X-Name-First: Miki 
Author-X-Name-Last: Kohara 
Title: Consumption insurance between Japanese households 
Abstract:
  This paper examines the implication of the full insurance hypothesis and
 differences in its applicability across groups of households in Japan.
 Using a rare Japanese individual panel data set called the Japanese Panel
 Survey of Consumption, the paper first shows that the full insurance
 hypothesis is strongly rejected for the country as a whole. The paper
 further shows that the rich as well as the poor, and also college
 graduates as well as non-college graduates cannot insure their consumption
 against income shocks. In sharp contrast, urban residents can pool income
 shocks completely, whereas rural residents cannot. Rural residents suffer
 from income risks more seriously than urban residents in Japan. 
Journal: Applied Economics 
Pages: 791-800 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121946 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121946 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:791-800




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Bazen 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Bazen 
Author-Name: Jean-Marie Cardebat 
Author-X-Name-First: Jean-Marie 
Author-X-Name-Last: Cardebat 
Title: The impact of trade on the relative wages and employment of low skill workers in France 
Abstract:
  The impact of international trade on labour markets in developed
 countries will be different according to the degree of competition in
 product markets, the flexibility of the labour market and the skill
 intensity of production. An econometric analysis of the impact of trade in
 France has been undertaken using sectoral data for the period 1985-p1992.
 It is found that lower relative import prices reduce the relative
 employment of low skill workers in the first half the period and reduce
 their relative wages in the second half. In both cases the effect is more
 pronounced in sectors where the skill intensity of production is initially
 low. 
Journal: Applied Economics 
Pages: 801-810 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122774 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122774 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:801-810




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Graham 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Graham 
Title: Productivity growth in British manufacturing: spatial variation in the role of scale economies, technological growth and industrial structure 
Abstract:
  This paper investigates the role of scale economies, technological growth
 and industrial structure in creating spatial variation in manufacturing
 labour and Total Factor (TFP) productivity in Britain. Separate estimates
 of a translog specification are presented for British manufacturing firms
 located in defined areas of the country over the period 1994-1998. The
 results show that TFP change due to scale economies and technological
 growth has been of much less important in influencing the output growth of
 manufacturing firms than input growth or industrial structure. Regarding
 the components of TFP, technological growth has been the dominant force at
 play. The analysis of average labour productivity identifies shifts to
 other factors of production and industrial structure as being the main
 determinants of change, scale economies appear to have had a marginal
 role. The results identify spatial patterns indicating that more
 favourable locational effects arise for firms in areas adjacent to large
 urban centres, rather than for those located within cities, on the extreme
 periphery of the urban hinterland, or in rural areas and smaller towns. 
Journal: Applied Economics 
Pages: 811-821 
Issue: 6 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122333 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122333 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:811-821




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Yih Chu 
Author-X-Name-First: Hong Yih 
Author-X-Name-Last: Chu 
Title: The optimal supply of public goods in collective choice 
Abstract:
  The aim of this paper is to provide an appropriate method to estimate the
 elasticity of demand that is to be used to calculate the benefit share
 which is used for calculating the benefit-burden ratio for median voters
 and to investigate whether the present tax system leads to an efficient
 level of public sector output. In addition, the redistribution effects of
 the current tax system will also be discussed. The degree of bias when the
 environmental factor was not included in the production function is also
 considered. 
Journal: Applied Economics 
Pages: 823-827 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122458 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122458 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:823-827




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Piazolo 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Piazolo 
Title: Investment behaviour in transition countries and computable general equilibrium models 
Abstract:
  When applying Computable General Equilibrium (CGE) models to transition
 economies, it is not plausible to use the standard assumption that the
 base year data represent stable structural characteristics or even the
 steady state of the economy. The suggestions forwarded until now to
 overcome this problem are discussed in this article. An amendment is
 proposed by modifying the investment modelling within the dynamic CGE
 setting. The standard formulation of installation costs for capital is
 extended through the inclusion of adjustment costs that depend on the
 change of the investment level. Such formulation of the adjustment costs
 within the dynamic CGE model leads to an investment behaviour that mirrors
 the empirical data of the first years of the transition. 
Journal: Applied Economics 
Pages: 829-837 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121922 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121922 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:829-837




Template-Type: ReDIF-Article 1.0
Author-Name: Jan-Egbert Sturm 
Author-X-Name-First: Jan-Egbert 
Author-X-Name-Last: Sturm 
Author-Name: Jakob De Haan 
Author-X-Name-First: Jakob 
Author-X-Name-Last: De Haan 
Title: How robust is the relationship between economic freedom and economic growth? 
Abstract:
  Using various indicators for economic freedom, it is shown that increases
 in economic freedom are robustly related to economic growth. This
 conclusion holds even if the impact of outlying observations is taken into
 account. The level of economic freedom is not related to growth. 
Journal: Applied Economics 
Pages: 839-844 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121977 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121977 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:839-844




Template-Type: ReDIF-Article 1.0
Author-Name: Donald Kenkel 
Author-X-Name-First: Donald 
Author-X-Name-Last: Kenkel 
Author-Name: Steven Koch 
Author-X-Name-First: Steven 
Author-X-Name-Last: Koch 
Title: Deterrence and knowledge of the law: The case of drunk driving 
Abstract:
  During the past decade, hundreds of new state laws have increased the
 certainty, severity and swiftness of punishment for drunk driving. These
 new laws can deter drunk driving only to the extent people know about
 them. In this empirical paper the role incomplete information plays in an
 econometric model of drunk driving deterrence is explored. Little evidence
 is found that people know the applicable laws in their states. However,
 some evidence of rational behaviour is found given their lack of knowledge
 of these laws. It is difficult to reconcile these results with studies
 that have found drunk driving deterrence effects of more severe penalties,
 more certain penalties, or even swifter penalties. 
Journal: Applied Economics 
Pages: 845-854 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122060 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122060 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:845-854




Template-Type: ReDIF-Article 1.0
Author-Name: Li-Hsueh Chen 
Author-X-Name-First: Li-Hsueh 
Author-X-Name-Last: Chen 
Title: Inflation and real short-term interest rates - A Kalman filter analysis of the term structure 
Abstract:
  This paper applies the Kalman filter technique to look at the
 relationship among real interest rates, inflation, and the term structure
 of interest rate under the expectations hypothesis. Using quarterly data
 from 1960:1 to 1991:1 for inflation, three month nominal short term
 interest rates and long term yields with maturities from one to five
 years, this paper finds that the expectations hypothesis of the term
 structure holds up well for the data under the assumptions of a
 time-varying premium and a random-walk real interest rate. In other words,
 a reconciliation of the expectations hypothesis with the data is attained
 by assuming time-varying term premium and non-stationary real interest
 rate. 
Journal: Applied Economics 
Pages: 855-861 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122550 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122550 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:855-861




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Delorme 
Author-X-Name-First: Charles 
Author-X-Name-Last: Delorme 
Author-Name: David Kamerschen 
Author-X-Name-First: David 
Author-X-Name-Last: Kamerschen 
Author-Name: Lisa Ford Voeks 
Author-X-Name-First: Lisa Ford 
Author-X-Name-Last: Voeks 
Title: Consumer confidence and rational expectations in the United States compared with the United Kingdom 
Abstract:
  This paper examines the relationship between consumer confidence and the
 Rational Expectations Permanent Income Hypothesis in the USA and compares
 the results with those obtained for the UK. The study expands previous
 analysis by defining consumption as motor vehicles, goods excluding motor
 vehicles, and services. The results suggest that predictive ability of the
 USA's consumer confidence is less than that of the UK, but that contrary
 to the UK study, confidence does not predict future consumption growth of
 services and is therefore consistent with Rational Expectations Permanent
 Income Hypothesis. 
Journal: Applied Economics 
Pages: 863-869 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122192 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122192 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:863-869




Template-Type: ReDIF-Article 1.0
Author-Name: R. J. Bennett 
Author-X-Name-First: R. J. 
Author-X-Name-Last: Bennett 
Author-Name: P. J. A. Robson 
Author-X-Name-First: P. J. A. 
Author-X-Name-Last: Robson 
Author-Name: W. J. A. Bratton 
Author-X-Name-First: W. J. A. 
Author-X-Name-Last: Bratton 
Title: Government advice networks for SMEs: an assessment of the influence of local context on Business Link use, impact and satisfaction 
Abstract:
  Business Link in Britain is one of the main recent government initiatives
 to support SMEs in the EU. The paper uses a 1997 survey of SMEs to
 determine how Business Link use, impact and satisfaction are influenced by
 firm characteristics, local partnership characteristics, local
 geographical context, service intensity and other explanatory variables.
 The paper presents econometric estimates based on logit and ordered logit
 models. A key finding of the paper is to demonstrate that local context is
 not very significant to service use, impact or satisfaction, but local
 Business Link management and adviser performance are important influences
 on the impact and satisfaction. Major differences in the way SMEs use
 government-backed services are also found. There are high volumes of use
 of 'gateway' information services producing only low impact, and low
 volumes but high impacts and satisfaction with intensive advice services
 governed by contracts between the clients and the adviser. Implications
 for the Small Business Service, launched in April 2000, are drawn. 
Journal: Applied Economics 
Pages: 871-885 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121626 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121626 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:871-885




Template-Type: ReDIF-Article 1.0
Author-Name: Joaquim Pinto De Andrade 
Author-X-Name-First: Joaquim Pinto 
Author-X-Name-Last: De Andrade 
Author-Name: Joseangelo Divino 
Author-X-Name-First: Joseangelo 
Author-X-Name-Last: Divino 
Title: Currency crises in Brazil: the role of the fundamentals and the rumours 
Abstract:
  The paper aims at identification of the main explanatory factors of the
 currency crises in Brazil. Following Choueiri and Kaminsky (1997) a VAR
 monetary model is used and the historical decomposition procedure
 developed by Sims (1980) to evaluate the importance of the 'fundamentals'
 represented by fiscal/monetary and exchange-rate policies, and the
 'external factors' represented by foreign interest rates and contagious
 effects. The main results show the importance of the exchange-rate
 management on the overall period and the contagious effects more recently
 to explain the Brazilian currency crises. 
Journal: Applied Economics 
Pages: 887-898 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121646 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:887-898




Template-Type: ReDIF-Article 1.0
Author-Name: Clive Granger 
Author-X-Name-First: Clive 
Author-X-Name-Last: Granger 
Author-Name: Namwon Hyung 
Author-X-Name-First: Namwon 
Author-X-Name-Last: Hyung 
Author-Name: Yongil Jeon 
Author-X-Name-First: Yongil 
Author-X-Name-Last: Jeon 
Title: Spurious regressions with stationary series 
Abstract:
  A spurious regression occurs when a pair of independent series, but with
 strong temporal properties, are found apparently to be related according
 to standard inference in an OLS regression. Although this is well known to
 occur with pairs of independent unit root processes, this paper finds
 evidence that similar results are found with positively autocorrelated
 autoregressive series or long moving averages. This occurs regardless of
 the sample size and for various distributions of the error terms. 
Journal: Applied Economics 
Pages: 899-904 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121734 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121734 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:899-904




Template-Type: ReDIF-Article 1.0
Author-Name: Wenshwo Fang 
Author-X-Name-First: Wenshwo 
Author-X-Name-Last: Fang 
Title: Stock return process and expected depreciation over the Asian financial crisis 
Abstract:
  The Asian financial crisis has been characterized by unstable stock and
 foreign exchange markets in Asia since July 1997. This paper postulates
 that expected depreciation helps to predict stock market volatility over
 the turmoil period. Using Taiwan daily data as an example, the estimated
 ARCH(3)-M model documents significantly a negative depreciation effect
 with no heteroscedasticity in the stock return process, suggesting that
 the expected depreciation is a cause of the changing variance. The
 evidence further shows that the stock market volatility has increased
 during the period of the Asian financial crisis 1997-1998, but the
 corresponding time-varying risk premium has remained unchanged. 
Journal: Applied Economics 
Pages: 905-912 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122487 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122487 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:905-912




Template-Type: ReDIF-Article 1.0
Author-Name: J. F. Nolan 
Author-X-Name-First: J. F. 
Author-X-Name-Last: Nolan 
Author-Name: P. C. Ritchie 
Author-X-Name-First: P. C. 
Author-X-Name-Last: Ritchie 
Author-Name: J. R. Rowcroft 
Author-X-Name-First: J. R. 
Author-X-Name-Last: Rowcroft 
Title: Measuring efficiency in the public sector using nonparametric frontier estimators: a study of transit agencies in the USA 
Abstract:
  Transit agencies in the USA must provide service under increasing
 operating constraints. Using data from 1989-1993, technical efficiency
 among these firms is estimated and characteristics indicative of
 differential efficiency in transit agencies are identified. This paper
 verifies the robustness of the second step regression results to the
 choice of efficiency measure by comparing results of the two step
 regressions using a pair of non-parametric efficiency estimators. It is
 discovered that the structure of government subsidy to this industry
 negatively affects not just cost efficiency, but technical efficiency as
 well. Furthermore, maintenance appears to be an important component of
 operational efficiency in this industry. 
Journal: Applied Economics 
Pages: 913-922 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122663 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122663 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:913-922




Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yil Choi 
Author-X-Name-First: Yong-Yil 
Author-X-Name-Last: Choi 
Title: Aggregate debt efficiency and debt inertia: lessons from the Korean economy 
Abstract:
  This paper investigates the link between aggregate debt efficiency and
 debt inertia in an highly leveraged business sector like Korea's. The
 model designs the concepts of liquidity multiplier and debt inertia to
 argue that they are two major indicators of aggregate debt efficiency. The
 empirical assessment to the Korean business sector indicates that the
 aggregate debt efficiency depends mainly on externalities of the debt
 inertia rather than liquidity creation due to the liquidity multiplier.
 The economic crisis of Korea in 1997 proves that such a debt efficiency
 structure must be vulnerable to attack. 
Journal: Applied Economics 
Pages: 923-927 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121666 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121666 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:923-927




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Kidd 
Author-X-Name-First: Michael 
Author-X-Name-Last: Kidd 
Author-Name: Michael Shannon 
Author-X-Name-First: Michael 
Author-X-Name-Last: Shannon 
Title: Convergence in the gender wage gap in Australia over the 1980s: identifying the role of counteracting forces via the Juhn, Murphy and Pierce Decomposition 
Abstract:
  The paper utilises the Juhn Murphy and Pierce (1991) decomposition to
 shed light on the pattern of slow male-female wage convergance in
 Australia over the 1980s. The analysis allows one to distinguish between
 the role of wage structure and genderspecific effects. The central
 question addressed is whether rising wage inequality counteracted the
 forces of increased female investment in labour market skills, i.e.
 education and experience. The conclusion is that in contrast to the US and
 the UK, Australian women do not appear to have been swimming against a
 tide of adverse wage structure changes. 
Journal: Applied Economics 
Pages: 929-936 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121991 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121991 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:929-936




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Miles 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Miles 
Title: Joint purchasing decisions: a multivariate negative binomial approach 
Abstract:
  The analysis of household purchasing decisions for understanding
 consumption behaviour has received much attention recently, mainly because
 of the measurement error problems that appear when using expenditure data
 to approximate consumption. This paper discusses some empirical
 regularities of the household purchasing behaviour based on information
 about the number of purchases a household has declared having done during
 the survey period. The concern of this paper is two-fold. First, to show
 how to recover purchase frequency data from the Spanish Budget Survey
 (1990-1991). Second, to discuss some empirical regularities of the joint
 purchasing decisions based on multivariate negative binomial models. 
Journal: Applied Economics 
Pages: 937-946 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121660 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121660 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:937-946




Template-Type: ReDIF-Article 1.0
Author-Name: J. C. H. Jones 
Author-X-Name-First: J. C. H. 
Author-X-Name-Last: Jones 
Author-Name: Tanya Potashnik 
Author-X-Name-First: Tanya 
Author-X-Name-Last: Potashnik 
Author-Name: Anming Zhang 
Author-X-Name-First: Anming 
Author-X-Name-Last: Zhang 
Title: Patents, brand-generic competition and the pricing of ethical drugs in Canada: some empirical evidence from British Columbia, 1981-1994 
Abstract:
  This paper examines the impact of the 1987 changes in the Canadian Patent
 Act on the pricing of ethical drugs. From 1969 to 1987 Canada opted to
 control pharmaceutical prices by using the compulsory licensing provisions
 of the Act to promote competition between branded drugs and their generic
 equivalents. In 1987, however, the Act was amended to guarantee patent
 holders an extended period (7-10 years) of protection. This reduced
 brand-generic competition by retarding generic entry and suggests that,
 ceteris paribus, after 1987 pharmaceutical prices increased relative to
 pre-1987 prices. This hypothesis is examined for the period 1981-1994
 using a sample of 82 drugs from the British Columbia Pharmacare Programme.
 The major conclusions are: despite evidence of significant first mover
 advantages which resulted in higher brand prices, competition from
 generics succeeded in reducing overall market prices prior to 1987; but,
 after 1987, the efficacy of generic competition was reduced and both brand
 and market prices increased. 
Journal: Applied Economics 
Pages: 947-956 
Issue: 7 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121705 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121705 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:947-956




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Clements 
Author-Name: Wana Yang 
Author-X-Name-First: Wana 
Author-X-Name-Last: Yang 
Author-Name: Dongling Chen 
Author-X-Name-First: Dongling 
Author-X-Name-Last: Chen 
Title: The matrix approach to evaluating demand equations 
Abstract:
  As there is a plethora of demand models, which one should be used to
 estimate income and price elasticities? The paper sheds light on this
 important practical problem by developing a matrix approach to simulating
 (MAS) demand equations to analyse their performance under idealized
 circumstances. Artificial data on the dependent variable are generated by
 one model, and these are then used for the estimation of another model. As
 an illustrative application, using four popular models, a 4 &#xd7; 4
 matrix is generated which gives all pair-wise comparisons. The performance
 of the models is then evaluated on the basis of the quality of the income
 and own-price elasticity estimates. 
Journal: Applied Economics 
Pages: 957-967 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122972 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122972 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:957-967




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Robbins 
Author-X-Name-First: Mark 
Author-X-Name-Last: Robbins 
Author-Name: Peter Kennedy 
Author-X-Name-First: Peter 
Author-X-Name-Last: Kennedy 
Title: Buyer behaviour in a regional thoroughbred yearling market 
Abstract:
  This paper reports the results of an hedonic pricing analysis of a
 regional thoroughbred auction market, adding to a literature which has
 been built mainly on data from elite auction markets. The main
 contribution of the paper is the finding that the role of the dam in
 affecting yearling price, elusive in the existing literature, is shown to
 depend primarily on information about progeny performance rather than dam
 performance. Additional results confirm existing knowledge about the roles
 of the sire, yearling sex, and yearling age, and support suspicions that
 race horses are consumer rather than investment goods. 
Journal: Applied Economics 
Pages: 969-977 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010002529 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010002529 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:969-977




Template-Type: ReDIF-Article 1.0
Author-Name: Haukur Benediktsson 
Author-X-Name-First: Haukur 
Author-X-Name-Last: Benediktsson 
Author-Name: Tryggvi Thor Herbertsson 
Author-X-Name-First: Tryggvi Thor 
Author-X-Name-Last: Herbertsson 
Author-Name: J. Michael Orszag 
Author-X-Name-First: J. Michael 
Author-X-Name-Last: Orszag 
Title: The charge ratio on individual accounts and investment plans in Iceland 
Abstract:
  This paper documents the lifetime costs on individual accounts and
 investment plans for a typical worker in Iceland using typical wage
 profiles and information on current charges obtained from the providers.
 The charge ratios calculated imply that costs at a current cost basis on
 individual accounts are substantially lower in Iceland than for personal
 pensions in the UK and retail charges for individual pension accounts in
 other countries. The Icelandic charges are substantially lower than would
 ordinarily be expected in an emerging defined contribution market and
 given the low contribution rates associated with the Icelandic accounts.
 These low charges are attributed to a variety of factors including: low
 levels of regulation, competition for business between traditional
 financial institutions and workers' main pension funds and the perception
 of a growing market. 
Journal: Applied Economics 
Pages: 979-987 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121719 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121719 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:979-987




Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Buch 
Author-X-Name-First: Claudia 
Author-X-Name-Last: Buch 
Title: Money demand in Hungary and Poland 
Abstract:
  This paper analyses the determinants and the stability of money demand
 functions in Hungary and Poland, using an error-correction framework. The
 null of stable cointegration relationships cannot be rejected in some
 specifications. The results suggest that long-run parameters are in line
 with economic theory. While judging the appropriateness of different
 strategies of monetary policy on the basis of these findings alone would
 be premature, the paper suggests that money demand functions can serve as
 a useful reference for monetary authorities. 
Journal: Applied Economics 
Pages: 989-999 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122107 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122107 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:989-999




Template-Type: ReDIF-Article 1.0
Author-Name: Catalina Amuedo-Dorantes 
Author-X-Name-First: Catalina 
Author-X-Name-Last: Amuedo-Dorantes 
Author-Name: Mark Wheeler 
Author-X-Name-First: Mark 
Author-X-Name-Last: Wheeler 
Title: An empirical analysis of the European Union's impact on Spanish economic performance 
Abstract:
  This paper examines the impact that the European Union (EU) has exerted
 on Spanish economic activity. The empirical analysis is conducted using
 variance decompositions and historical decompositions derived from a near
 vector autoregressive (VAR) model. The near VAR includes the exchange
 rate, the EU's inflation rate and output, and Spain's inflation rate,
 output, money supply and interest rate. The estimation period begins in
 1987, the year after Spain joined the EU, and ends in 1997. The main
 finding of the analysis is that the EU has significant impacts on the
 Spanish economy. The paper finds that shocks to EU output explain up to
 63% of Spanish output. At longer time horizons, shocks to the EU's
 inflation rate and output combine to explain over 50% of the forecast
 error variance in Spanish inflation. 
Journal: Applied Economics 
Pages: 1001-1008 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121830 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121830 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1001-1008




Template-Type: ReDIF-Article 1.0
Author-Name: Rukmani Gounder 
Author-X-Name-First: Rukmani 
Author-X-Name-Last: Gounder 
Title: Aid-growth nexus: empirical evidence from Fiji 
Abstract:
  Foreign aid to the island economies is a major source for foreign
 exchange and resource needs. This paper presents an empirical analysis of
 the relationship between foreign aid and economic growth in the case of
 Fiji. A neoclassical production function is applied to estimate the
 aid-growth nexus. Since the data employed are time series for the period
 1968 to 1996, the Autoregressive Distributed Lag approach to cointegration
 is utilized to estimate the models. Components of total aid, such as grant
 aid, loan aid, technical cooperation, bilateral and multilateral aid flows
 are also utilized to estimate a disaggregated short-run and long-run
 relationship between foreign aid and economic growth. The results show
 that total aid flows and its various forms, i.e. bilateral aid, grant aid
 and technical cooperation grant aid, has a significant impact on economic
 growth in Fiji. As for domestic resources, only exports and private
 investments in two equations show positive contribution to growth. 
Journal: Applied Economics 
Pages: 1009-1019 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122986 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122986 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1009-1019




Template-Type: ReDIF-Article 1.0
Author-Name: Joop Hartog 
Author-X-Name-First: Joop 
Author-X-Name-Last: Hartog 
Author-Name: Pedro Pereira 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Pereira 
Author-Name: Jose Vieira 
Author-X-Name-First: Jose 
Author-X-Name-Last: Vieira 
Title: Changing returns to education in Portugal during the 1980s and early 1990s: OLS and quantile regression estimators 
Abstract:
  This paper examines the evolution of the returns to education in Portugal
 over the 1980s and early 1990s. The main findings indicate that the
 returns to education have increased, particularly after joining the
 European Union in 1986. Since this occurred along with an increase in the
 level of education within the labour force, the process is most likely
 demand driven. The results also indicate that modelling on average (i.e.
 OLS) misses important features of the wage structure. Quantile regression
 (QR) analysis reveals that the effect of education is not constant across
 the conditional wage distribution. They are higher for those at higher
 quantiles in the conditional wage distribution. Wage inequality expanded
 in Portugal over the 1980s and the returns to education had an important
 role in this process. 
Journal: Applied Economics 
Pages: 1021-1037 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122679 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1021-1037




Template-Type: ReDIF-Article 1.0
Author-Name: Shaomin Huang 
Author-X-Name-First: Shaomin 
Author-X-Name-Last: Huang 
Title: Asymmetric participation in China's stamp market: hobbyists and investors 
Abstract:
  China's stamp market has expanded rapidly in the last two decades. Stamp
 trading has become very profitable. Both hobbyists and investors are more
 interested in newly released stamps. This study shows that the value of
 newly issued stamps appreciates faster than the value of older issued
 stamps. This effect is caused by the asymmetric participation in stamp
 collection between hobbyists and investors. 
Journal: Applied Economics 
Pages: 1039-1044 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122444 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1039-1044




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Wenshwo Fang 
Author-X-Name-First: Wenshwo 
Author-X-Name-Last: Fang 
Author-Name: Li-Fang Wen 
Author-X-Name-First: Li-Fang 
Author-X-Name-Last: Wen 
Title: Energy consumption, employment, output, and temporal causality: evidence from Taiwan based on cointegration and error-correction modelling techniques 
Abstract:
  In this study, a cointegration analysis and a vector autoregressive model
 (VAR) are used to examine the causal relationships among energy
 consumption, employment, and output for Taiwan over the period January
 1982 to November 1997. Johansen (1988) and Johansen and Juselius (1990)
 cointegration test result indicates these three variables are cointegrated
 with one cointegrating vector. The results from Granger causality tests
 based on vector error-correction models (VECM) suggest bidirectional
 Grange causality for employment-output and employment-energy consumption,
 but only unidirectional causality running from energy consumption to
 output. Furthermore, the impulse responses and variance decompositions are
 also incorporated into the analysis. The results from impulsive response
 and variance decomposition analysis tell similar stories. Energy
 consumption appears to have led to output growth in Taiwan over this
 period. The policy implication of this finding is that energy conservation
 will restrain the output growth in Taiwan. 
Journal: Applied Economics 
Pages: 1045-1056 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122484 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122484 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1045-1056




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Kassimatis 
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Kassimatis 
Author-Name: Spyros Spyrou 
Author-X-Name-First: Spyros 
Author-X-Name-Last: Spyrou 
Title: Stock and credit market expansion and economic development in emerging markets: further evidence utilizing cointegration analysis 
Abstract:
  This paper empirically investigates the relationship between equity and
 credit market development and economic growth, in a sample of five very
 important 'emerging' markets. In particular, employing a multivariate
 time-series methodology to test for long-run trends and causality between
 variables that proxy for stock market development, credit market
 development and economic development. The results seem to suggest that
 equity markets have a role to play only in relatively liberalized
 economies, like Chile and Mexico. In financially repressed economies, like
 India, the equity market does not affect real sector growth. Furthermore,
 the banking crises in the 1980s and 1990s in Chile and Mexico resulted in
 a negative relation between economic growth and the credit market. In
 South Korea, equity and credit markets both affect economic growth, but
 not vice versa. In countries where the nature of the stock market has been
 speculative, like Taiwan, a negative relationship is detected between
 equity market development and economic development. 
Journal: Applied Economics 
Pages: 1057-1064 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121750 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121750 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1057-1064




Template-Type: ReDIF-Article 1.0
Author-Name: Paula Lorgelly 
Author-X-Name-First: Paula 
Author-X-Name-Last: Lorgelly 
Author-Name: Stephen Knowles 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Knowles 
Author-Name: P. Dorian Owen 
Author-X-Name-First: P. Dorian 
Author-X-Name-Last: Owen 
Title: Barro's fertility equations: the robustness of the role of female education and income 
Abstract:
  Barro and Lee (1994) and Barro and Sala-i-Martin (1995) find that real
 per-capita GDP and both male and female education have important effects
 on fertility in their cross-country empirical studies. In order to assess
 the robustness of their results, their estimated models are subjected to
 specification and diagnostic testing, the effects on the model of using
 the improved Barro and Lee (1996) cross-country data on educational
 attainment of the population aged 15 and over are examined, and the
 different specifications used by Barro and Lee and by Barro and
 Sala-i-Martin compared. The results obtained suggest that their fertility
 equations do not perform well in terms of diagnostic testing, and are very
 sensitive to the use of different vintages of the educational attainment
 proxies and of the Summers-Heston cross-country income data. A robust
 explanation of fertility, to link with empirical growth equations, has,
 therefore, not yet been found; further work is required in this area. 
Journal: Applied Economics 
Pages: 1065-1075 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122385 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122385 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1065-1075




Template-Type: ReDIF-Article 1.0
Author-Name: Gianluigi Giorgioni 
Author-X-Name-First: Gianluigi 
Author-X-Name-Last: Giorgioni 
Title: New evidence on the output-inflation trade-off from developing economies: the case of the CFA Franc zone 
Abstract:
  This aim of this paper is to give a contribution to the debate on whether
 output-inflation trade-offs are negatively influenced by the mean of
 inflation (as postulated by new-Keynesians) or by the variability of
 inflation (as postulated by neo-classical economists). To remove any
 concerns about the arbitrariness of the choice of the sample, the analysis
 will focus on a group of countries belonging to the same currency union,
 the Franc Zone. The results do not provide conclusive evidence on either
 theory as it was found that there existed a negative relation between the
 output-inflation trade-offs and the mean of inflation on the one hand, and
 the variability of inflation, on the other. 
Journal: Applied Economics 
Pages: 1077-1082 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010003267 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010003267 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1077-1082




Template-Type: ReDIF-Article 1.0
Author-Name: V. Anton Muscatelli 
Author-X-Name-First: V. Anton 
Author-X-Name-Last: Muscatelli 
Author-Name: Patrizio Tirelli 
Author-X-Name-First: Patrizio 
Author-X-Name-Last: Tirelli 
Title: Unemployment and growth: some empirical evidence from structural time series models 
Abstract:
  This study investigates the empirical relationship between unemployment
 and growth in a number of OECD economies. A structural time series model
 is used for labour productivity growth to demonstrate that, in most
 economies, there seems to be a negative correlation between unemployment
 and labour productivity growth. The results provide little support for the
 theory that recessions may stimulate productivity growth. The use of a
 structural time series approach allows an attempt to model the underlying
 dynamics of productivity growth jointly with the effect of unemployment. 
Journal: Applied Economics 
Pages: 1083-1088 
Issue: 8 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010003276 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010003276 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1083-1088




Template-Type: ReDIF-Article 1.0
Author-Name: Frederic Vermeulen 
Author-X-Name-First: Frederic 
Author-X-Name-Last: Vermeulen 
Title: A note on Heckman-type corrections in models for zero expenditures 
Abstract:
  In Heien and Wessells (1990), a two-step estimation procedure, that makes
 use of Heckman-type corrections, is proposed to estimate consumption on
 household budget surveys. It is shown that this approach, which draws from
 switching regressions models, leads to inconsistent estimates. 
Journal: Applied Economics 
Pages: 1089-1092 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010004004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004004 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1089-1092




Template-Type: ReDIF-Article 1.0
Author-Name: Alipasha Razzaghipour 
Author-X-Name-First: Alipasha 
Author-X-Name-Last: Razzaghipour 
Author-Name: Grant Fleming 
Author-X-Name-First: Grant 
Author-X-Name-Last: Fleming 
Author-Name: Richard Heaney 
Author-X-Name-First: Richard 
Author-X-Name-Last: Heaney 
Title: Deviations and mean reversion to purchasing power parity in the Asian currency crisis of 1997 
Abstract:
  This study analyses the process of mean reversion towards purchasing
 power parity (PPP) for a sample of Asian countries around the 1997 crisis.
 It is found that appreciation relative to PPP is evident prior to the 1997
 crash period. Correction occurs from 1997 onwards, a period marked by
 extreme movements in exchange rates with both appreciation and
 depreciation relative to the PPP rate over relatively short periods. The
 key result of this paper is that although reversion towards PPP is
 apparent for mean, though not statistically significant, it is clear that
 there is a substantial, statistically significant change in variance from
 1997 onwards. This result has implications both for economic modelling of
 crash periods and for appropriate choice of statistical tests. 
Journal: Applied Economics 
Pages: 1093-1100 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121709 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121709 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1093-1100




Template-Type: ReDIF-Article 1.0
Author-Name: Federico Revelli 
Author-X-Name-First: Federico 
Author-X-Name-Last: Revelli 
Title: Spatial patterns in local taxation: tax mimicking or error mimicking? 
Abstract:
  This paper tests for mimicry in local tax setting, by using a panel data
 set of the English non-metropolitan districts in the 1980s &#x2014; when
 property tax rate variability across districts was highest. The results
 confirm the presence of large and significant spatial interactions among
 districts. Even after allowing for district-specific and time effects, a
 district appears to be significantly affected by its neighbours' policies.
 A 10% increase in the local property tax rate of a district's neighbours
 leads to an increase of 4-5% in its own property tax rate. On the other
 hand, the absence of correlation in tax rates between lower tier
 (district) authorities and upper tier (county) authorities suggests that
 the spatial pattern in district tax rates is not simply driven by
 spatially auto-correlated shocks. 
Journal: Applied Economics 
Pages: 1101-1107 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010007164 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007164 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1101-1107




Template-Type: ReDIF-Article 1.0
Author-Name: Tim Barmby 
Author-X-Name-First: Tim 
Author-X-Name-Last: Barmby 
Author-Name: Nina Smith 
Author-X-Name-First: Nina 
Author-X-Name-Last: Smith 
Title: Household labour supply in Britain and Denmark: some interpretations using a model of Pareto Optimal behaviour 
Abstract:
  This paper analyses the labour supply behaviour of households in Denmark
 and Britain. It employs models in which the preferences of individuals
 within the household are explicitly represented. The households are then
 assumed to decide on their labour supply in a Pareto Optimal fashion.
 Describing the structure of the household decision in this way allows
 preliminary results to be obtained on the internal weighting of utilities
 within the household. 
Journal: Applied Economics 
Pages: 1109-1116 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010005238 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010005238 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1109-1116




Template-Type: ReDIF-Article 1.0
Author-Name: Nigel James Miller 
Author-X-Name-First: Nigel James 
Author-X-Name-Last: Miller 
Author-Name: Christopher Tsoukis 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Tsoukis 
Title: On the optimality of public capital for long-run economic growth: evidence from panel data 
Abstract:
  The role of public capital in economic growth is examined using data from
 the Penn World Tables and other sources on a large number of countries.
 Drawing on intertemporal optimization, the theoretical framework nests the
 exogenous (Solow) and endogenous types of growth and is data-consistent.
 It is found that public capital makes a significant contribution to
 growth. The actual level of investment on public capital is suboptimal.
 Growth in recent decades can be characterized as 'endogenous' with little
 sign of convergence. There is evidence of a growth slow-down between the
 1970s and 1980s. Human capital also significantly enhances growth. 
Journal: Applied Economics 
Pages: 1117-1129 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010003258 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010003258 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1117-1129




Template-Type: ReDIF-Article 1.0
Author-Name: Albert Okunade 
Author-X-Name-First: Albert 
Author-X-Name-Last: Okunade 
Author-Name: Mustafa Karakus 
Author-X-Name-First: Mustafa 
Author-X-Name-Last: Karakus 
Title: Unit root and cointegration tests: timeseries versus panel estimates for international health expenditure models 
Abstract:
  Classical regression estimates of the determinants of the OECD health
 expenditures are useful for policy formulation and evaluation. However, if
 the underlying timeseries data are not collectively stationary in levels,
 the estimated parameters are faulty and can misguide health policy. Until
 very recently, the crucial stationarity tests were ignored in a large
 number of studies on international comparisons. Stationarity (ADF,
 Phillips-Perron, IPS heterogeneous panel) and cointegration (Engle-Granger
 bivariate, Johansen's multivariate) tests are conducted here using
 1960-1997 health expenditures data (1998 CD ROM) of 19 OECD countries. It
 is found that extending the time series data length affects the order of
 integration and number of cointegrating vectors. However, it is arguable
 whether the order of integration decreases or increases as more
 observations are added for testing. The failure of the Johansen and
 Engle-Granger cointegration tests for most of the OECD countries cautions
 policy makers against reliance on earlier research findings that were
 based on unstable relationships among variables in the regression models.
 (This is not the case for the UK, Greece and Ireland; policy implications
 have been derived for the UK.) Consequently, data calibrated in growth
 rates may be more appropriate for investigating the long run relationships
 collectively in a panel of OECD health expenditure model specifications. 
Journal: Applied Economics 
Pages: 1131-1137 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122612 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122612 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1131-1137




Template-Type: ReDIF-Article 1.0
Author-Name: Sven Wilson 
Author-X-Name-First: Sven 
Author-X-Name-Last: Wilson 
Title: Work and the accommodation of chronic illness: A re-examination of the health-labour supply relationship 
Abstract:
  This study uses a data set of over 14000 households from the state of New
 Jersey in the USA to estimate the impact of specific chronic health
 conditions on the probability of employment and finds wide variation of
 employment impacts across chronic conditions. Additionally, the elasticity
 of the employment response is generally greater for women and
 lower-skilled workers. Most notable is the role of comorbidity.
 Individuals with multiple conditions have markedly lower probability of
 employment, and chronic illness explains virtually all of the large gap in
 employment probability for those who have multiple conditions. This is
 shown using a summary index of disease status that correlates closely with
 employment rates across age groups. In the aggregate, chronic disease
 striking in adulthood explains about 10% of the total non-employment in
 the New Jersey among those aged 35-74. Finally, cross-sectional evidence
 gives little support for health as a primary determinant of the aggregate
 age-employment profile, though controlling for the age-specific severity
 of conditions may alter this finding. 
Journal: Applied Economics 
Pages: 1139-1156 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010004527 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004527 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1139-1156




Template-Type: ReDIF-Article 1.0
Author-Name: Hans-Jurgen Engelbrecht 
Author-X-Name-First: Hans-Jurgen 
Author-X-Name-Last: Engelbrecht 
Author-Name: Chris Langley 
Author-X-Name-First: Chris 
Author-X-Name-Last: Langley 
Title: Inflation crises, deflation, and growth: further evidence 
Abstract:
  Bruno and Easterly (1998) provide a simple historical description of per
 capita GDP growth rates before, during and after periods of high inflation
 crises. The pattern of growth shows resurgence in after-crisis growth to
 above the before-crisis level. The robustness of this finding is tested
 against justifiable changes in the data sample used and against different
 crisis definitions. The results show that after-crisis growth rates do not
 recover to a level above those experienced before-crisis. In contrast to
 Bruno and Easterly, the important distinction between open and closed
 economies is emphasized. Only in the former case are their results that
 growth deviations from the world average after-crisis improve relative to
 the before-crisis periods confirmed. Finally, the pattern of growth
 before, during and after deflationary periods is analysed. The data reveal
 a potentially important asymmetry in the correlation between deflation and
 growth, and inflation and growth. Low rates of deflation are associated
 with a similarly negative per capita GDP growth rate as are very high
 rates of inflation. 
Journal: Applied Economics 
Pages: 1157-1165 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010004554 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004554 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1157-1165




Template-Type: ReDIF-Article 1.0
Author-Name: Gregory Berg 
Author-X-Name-First: Gregory 
Author-X-Name-Last: Berg 
Author-Name: William Kaempfer 
Author-X-Name-First: William 
Author-X-Name-Last: Kaempfer 
Title: Cigarette demand and tax policy for race groups in South Africa 
Abstract:
  This paper calculates cigarette demand for race groups in South Africa.
 Elasticities are the most important information a tax policy analyst can
 have. Elasticities determine how the tax base will change with a change in
 the tax rate and thus how government revenues will respond to the tax.
 Elasticities also determine the excess burden that consumers will bear as
 a result of the tax. As such, own price, crossprice, and expenditure
 elasticities are calculated along with government revenue maximizing tax
 rates, and total and excess burdens. Parametric and semiparametric
 estimation techniques are used and compared. Results show that a tax on
 cigarettes will discourage nonsmokers from starting to smoke and mainly
 raise revenue from current smokers. Furthermore, it is found that
 consumption behaviours between groups are different implying different
 government revenue maximizing tax rates for each group affecting the
 distribution of income. 
Journal: Applied Economics 
Pages: 1167-1173 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122752 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122752 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1167-1173




Template-Type: ReDIF-Article 1.0
Author-Name: Denisard Alves 
Author-X-Name-First: Denisard 
Author-X-Name-Last: Alves 
Author-Name: Regina Celia Cati 
Author-X-Name-First: Regina Celia 
Author-X-Name-Last: Cati 
Author-Name: Vera Lucia Fava 
Author-X-Name-First: Vera Lucia 
Author-X-Name-Last: Fava 
Title: Purchasing power parity in Brazil: a test for fractional cointegration 
Abstract:
  The purpose of this paper is to test the validity of the purchasing power
 parity (PPP) doctrine in Brazil. Historical data for the period 1855-1996
 are considered. The period 1855-1990 is also analysed in order to compare
 the results with those obtained by Zini and Cati (1993) using the
 conventional cointegration analysis. This article uses fractional
 cointegration analysis, a flexible methodology which allows for more
 subtle forms of mean reversion. The tests performed are those of Geweke
 and Porter-Hudak (1983), and of Hurvich and Ray (1995). The critical
 values for both tests are generated by simulation because they are
 non-standard. The empirical results do not support the absolute PPP
 hypothesis but the relative PPP holds in the long run. 
Journal: Applied Economics 
Pages: 1175-1185 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122819 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122819 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1175-1185




Template-Type: ReDIF-Article 1.0
Author-Name: Brinda Viswanathan 
Author-X-Name-First: Brinda 
Author-X-Name-Last: Viswanathan 
Title: Structural breaks in consumption patterns: India 1952-1991 
Abstract:
  This study improves upon the econometric modelling for testing and
 incorporating structural breaks for a study on Indian consumption patterns
 covering a period of four decades and also explores the causes of such
 breaks. The tests for structural breaks in consumption patterns indicate
 multiple break points which are not uniform across the population groups
 and also across commodity groups. Further, the results indicate for the
 first time, that the breaks could often be induced by the changes in the
 data collection methodology of the survey and not due to changes in
 consumer behaviour alone. Apart from this, there is a shift in the
 consumption pattern during the mid-1980s in both the rural and the urban
 sectors. For the lowest expenditure class the shift is away from food
 items with the rural sector showing a change in the price response and the
 urban sector showing a change in the total expenditure coefficient. For
 the middle and the upper expenditure classes the shifts are not only from
 the food items towards non-food items but also from the 'food' group that
 includes items like cereals, milk and milk products towards the 'other
 food' group which includes items like vegetables and fruits. Its causes
 are found to be changes in preferences as well as the income effect. 
Journal: Applied Economics 
Pages: 1187-1200 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010004581 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004581 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1187-1200




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Arias 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Arias 
Author-Name: Thomas Cox 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Cox 
Title: Estimation of a US dairy sector model by maximum simulated likelihood 
Abstract:
  This paper estimates a multivariate Tobit system of monthly wholesale
 dairy prices where four prices are lower censored by the dairy price
 support programme. Using Maximum Simulated Likelihood (MSL) the effects of
 simulation noise are tested/corrected for and the relevance of estimating
 multivariate versus the single Tobit equations discussed. 
Journal: Applied Economics 
Pages: 1201-1211 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010005797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010005797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1201-1211




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Lanoie 
Author-X-Name-First: Paul 
Author-X-Name-Last: Lanoie 
Author-Name: Francois Raymond 
Author-X-Name-First: Francois 
Author-X-Name-Last: Raymond 
Author-Name: Bruce Shearer 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Shearer 
Title: Work sharing and productivity: evidence from firm level data 
Abstract:
  This paper is the first to examine empirically how work sharing
 influences workers' productivity, using a unique data set from a large
 Canadian firm. This firm has adopted a work sharing scheme for one year,
 which allows comparison of workers' productivity with and without the work
 sharing programme. It is found that work sharing has led to a significant
 decrease in labour productivity. 
Journal: Applied Economics 
Pages: 1213-1220 
Issue: 9 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122568 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122568 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1213-1220




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Felipe 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Felipe 
Author-Name: J. S. L. McCombie 
Author-X-Name-First: J. S. L. 
Author-X-Name-Last: McCombie 
Title: The CES Production Function, the accounting identity, and Occam's razor 
Abstract:
  This paper reconsiders the argument that empirical estimations of
 aggregate production functions may be interpreted merely as statistical
 artefact. The reason is that Occam's razor, or Herbert Simon's principle
 of parsimony, suggests that the aggregate production function, together
 with the side equations derived from the usual neoclassical optimizing
 conditions, simply reflect the underlying accounting identity that value
 added definitionally equals the wage bill plus total profits. This
 argument is illustrated with respect to the empirical evidence presented
 by Arrow, Chenery, Minhas and Solow (Review of Economics and Statistics,
 XLIII, 225-50, 1961) and which led them to derive the Constant Elasticity
 of Substitution aggregate production function. It is shown that their
 results are more parsimoniously explained with reference to the underlying
 accounting identity than to any technological relationship. 
Journal: Applied Economics 
Pages: 1221-1232 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122836 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122836 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1221-1232




Template-Type: ReDIF-Article 1.0
Author-Name: Annette Vann De Berg 
Author-X-Name-First: Annette Vann 
Author-X-Name-Last: De Berg 
Author-Name: Yolanda Grift 
Author-X-Name-First: Yolanda 
Author-X-Name-Last: Grift 
Title: Dutch trade union membership 1979-1995 
Abstract:
  Determinants of Dutch trade union membership are analysed for the years
 1979, 1987 and 1995. By means of a decomposition method it is established
 that changing characteristics of the working population primarily caused
 the union decline between 1979 and 1987, whereas the recovery afterwards
 can be entirely attributed to changing unionization behaviour. A further
 application of the decomposition method shows that the contribution of the
 separate explanatory variables to shifts in the density rate is less
 straightforward than the results of the first analyses suggest. 
Journal: Applied Economics 
Pages: 1233-1242 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122022 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1233-1242




Template-Type: ReDIF-Article 1.0
Author-Name: Cherian Samuel 
Author-X-Name-First: Cherian 
Author-X-Name-Last: Samuel 
Title: Stock market and investment: the signalling role of the market 
Abstract:
  The evidence in this paper suggests that the q-theory of investment is
 not adequate to explain capital expenditure decisions at the firm level.
 Managerial as well as market perception is important, with the former more
 critical than the latter. The results also suggest that stock market
 activity has only limited implications for the resource allocation process
 in the economy. The evidence for the q-theory, based on firm-level data,
 confirms the previous finding in the literature that the poor empirical
 performance of the model in the past has been due in part to the use of
 aggregate data at the economy level. These findings have important
 implications for the debate in the literature regarding the relationship
 between shareholder myopia and managerial myopia. There is a notion in the
 literature that the stock market puts too much pressure on managers, who
 in turn indulge in myopic behaviour by underinvesting for the long-term,
 especially by way of R and D expenditures. The results presented here
 suggest that, given the limited role that market perception elements play
 in the determination of capital expenditures at the firm-level,
 shareholder myopia is unlikely to lead to managerial myopia. 
Journal: Applied Economics 
Pages: 1243-1252 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840121765 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121765 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1243-1252




Template-Type: ReDIF-Article 1.0
Author-Name: Kishor Sharma 
Author-X-Name-First: Kishor 
Author-X-Name-Last: Sharma 
Title: Liberalization, growth and structural change: evidence from Nepalese manufacturing 
Abstract:
  This paper presents an empirical analysis of the consequences of
 liberalization on industrial structure in Nepal, a least developed country
 with weak institutions and severe infrastructure bottlenecks. Results
 suggest some structural change in manufacturing output and trade
 orientation which appears to be due to a change in incentive structure,
 but no significant improvements were recorded in total factor productivity
 growth which is of central importance for a least developed country like
 Nepal. Export intensity rose significantly in the postliberalization
 period despite poor productivity performance of export-oriented industries
 while import intensity fell due mainly to improved competitiveness in
 import competing industries and a fall in imports for smuggling to India. 
Journal: Applied Economics 
Pages: 1253-1261 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010004013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004013 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1253-1261




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gil-Alana 
Title: The persistence of unemployment in the USA and Europe in terms of fractionally ARIMA models 
Abstract:
  This article examines the persistence of unemployment in the USA and four
 European countries by means of fractionally integrated ARMA (ARFIMA)
 models. In doing so, a type of flexibility in modelling low-frequency
 dynamics not achieved by non-fractionally ARIMA models can be provided.
 The results indicate that the unemployment series are much more persistent
 in some countries such as the UK and France, than in others including
 Germany or the USA. 
Journal: Applied Economics 
Pages: 1263-1269 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010007137 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007137 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1263-1269




Template-Type: ReDIF-Article 1.0
Author-Name: Victor Pinga 
Author-X-Name-First: Victor 
Author-X-Name-Last: Pinga 
Author-Name: Gerald Nelson 
Author-X-Name-First: Gerald 
Author-X-Name-Last: Nelson 
Title: Money, prices and causality: monetarist versus structuralist explanations using pooled country evidence 
Abstract:
  The direction of causality between changes in money supply and aggregate
 prices has long been a matter of controversy between structuralists and
 monetarists. This paper addresses deficiencies in this literature in three
 ways. First, a large sample of countries with alternate measures of money
 and price variables is used to evaluate the evidence on money, inflation
 and causality. Second, combined data are tested for causality, with the
 combinations based on variables suggested by the literature - level of per
 capita income, magnitude of inflation, degree of financial market
 development, and independence of the central bank. Finally, because the
 choice of lag length is often arbitrary, results are generated with
 varying lags and consistency across different lag periods looked for. Two
 presentation methods are developed - categorical and graphical. Evidence
 of structural inflation, was found only in Chile and Sri Lanka. Evidence
 of money supply exogeneity on the other hand was found to be strongest in
 Kuwait, Paraguay and the USA. Most countries exhibited mixed evidence of
 money supply endogeneity, with bidirectional causation between money
 supply and aggregate prices a common result. 
Journal: Applied Economics 
Pages: 1271-1281 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122078 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1271-1281




Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Chuan Chen 
Author-X-Name-First: Hui-Chuan 
Author-X-Name-Last: Chen 
Title: Taiwan's exports and trade imbalance against US and Japan: an empirical analysis 
Abstract:
  The persistence of the bilateral trade surplus between Taiwan and the USA
 and the bilateral trade deficit between Taiwan and Japan despite the
 significant appreciation or depreciation of the NT dollar during the early
 1980s to the mid-1990s renewed interest to seek explanations for these
 phenomena. To assess the above proposition, a polynomial distributed lag
 (PDL) method is imposed on the impact of changes in the real exchange rate
 on the bilateral trade structure particularly export demand and trade
 imbalance between Taiwan, the USA and Japan from 1981 to 1998. The
 empirical findings show that: (1) the real income factors have important
 effects on the real exports in both cases; (2) the real exchange rates and
 the real imports are not major determinants of the export demand from
 Taiwan to the USA but they do play an important role on the real exports
 from Taiwan to Japan; (3) the real exchange rate has significant effect on
 the real trade surplus with the USA and on trade deficit with Japan but
 the real income has not. 
Journal: Applied Economics 
Pages: 1283-1287 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122642 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1283-1287




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Wenshwo Fang 
Author-X-Name-First: Wenshwo 
Author-X-Name-Last: Fang 
Author-Name: Li-Fang Wen 
Author-X-Name-First: Li-Fang 
Author-X-Name-Last: Wen 
Author-Name: Chwenchi Liu 
Author-X-Name-First: Chwenchi 
Author-X-Name-Last: Liu 
Title: Defence spending, economic growth and temporal causality: evidence from Taiwan and mainland China, 1952-1995 
Abstract:
  This paper uses a cointegration analysis and a vector autoregressive
 model (VAR) to examine the causal relationship between defence spending
 and economic growth for Taiwan and Mainland China over the period
 1952-1995. It is found that these two variables are not cointegrated for
 both countries studied. The results of the Granger causality tests suggest
 bidirectional Granger causality (feedback) between defence spending and
 economic growth for Taiwan, unidirectional Granger causality running from
 economic growth to defence spending for Mainland China, and unidirectional
 Granger causality running from Taiwan's defence spending to Mainland
 China's defence spending for cross-country studied. These results further
 indicate that there exists no arms race between two countries from both
 sides of Taiwan strait. Furthermore, impulse responses and variance
 decompositions are incorporated into the analysis. The results from the
 impulse responses and variance decompositions tell a similar story. 
Journal: Applied Economics 
Pages: 1289-1299 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122529 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122529 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1289-1299




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Rezitis 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Rezitis 
Author-Name: A. Blake Brown 
Author-X-Name-First: A. Blake 
Author-X-Name-Last: Brown 
Author-Name: William Foster 
Author-X-Name-First: William 
Author-X-Name-Last: Foster 
Title: Dynamic factor demands for US cigarette manufacturing under rational expectations 
Abstract:
  The rational expectations approach to adjustment cost models for factor
 demand is used to develop a dynamic model for US cigarette manufacturing.
 In the present study dynamic production modelling is extended to the case
 of multiple outputs. This analysis is the first to address cigarette
 manufacturing allowing for the possible influence of quasi-fixed factors,
 multiple outputs and rational expectations. Short-, intermediate-, and
 long-run factor demands are estimated and the presence of adjustment costs
 tested for in US cigarette manufacturing. The results indicate that there
 are significant adjustment costs associated with adjusting tobacco stock
 but not with adjusting the capital stock. Cigarettes produced for exports
 appear to differ in their marginal cost of production from cigarettes
 produced for sale in the US market. 
Journal: Applied Economics 
Pages: 1301-1311 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840122398 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122398 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1301-1311




Template-Type: ReDIF-Article 1.0
Author-Name: Berta Rivera 
Author-X-Name-First: Berta 
Author-X-Name-Last: Rivera 
Title: The effects of public health spending on self-assessed health status: an ordered probit model 
Abstract:
  This paper explores the relationship between public health expenditure
 and self-assessed health status. Medical resources are imputed according
 to where individuals reside. The analysis draws upon data from the 1993
 National Health Survey. Controlling for a number of individual
 characteristics, which also determine health status, the estimations
 indicate that increases in public health expenditure significantly improve
 both physiological and physical health. The results remain consistent when
 the model is reestimated and the change in the probability at the mean of
 the independent variable is calculated. 
Journal: Applied Economics 
Pages: 1313-1319 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010007146 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1313-1319




Template-Type: ReDIF-Article 1.0
Author-Name: Burc Ulengin 
Author-X-Name-First: Burc 
Author-X-Name-Last: Ulengin 
Author-Name: Nurhan Yenturk 
Author-X-Name-First: Nurhan 
Author-X-Name-Last: Yenturk 
Title: Impacts of capital inflows on aggregate spending categories: the case of Turkey 
Abstract:
  This paper discusses the impact of foreign savings on aggregate spending
 categories in Turkey. Using the vector autoregressive (VAR) models the
 major finding is that foreign savings has an increasing effect on
 consumption. The increase of investment arises from the accelerator effect
 of consumption, which results in an upward trend in investment in
 non-tradable sectors. Concluding that the policy of relying on foreign
 savings, to obtain long-term increases in tradable sector investment and
 competitiveness is ill-judged. 
Journal: Applied Economics 
Pages: 1321-1328 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010009847 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009847 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1321-1328




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Heyndels 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Heyndels 
Title: Asymmetries in the flypaper effect: empirical evidence for the Flemish municipalities 
Abstract:
  Recent empirical work on US governments indicates an asymmetry in the
 flypaper effect: the elasticity of public spending with respect to changes
 in grants differs significantly for positive and negative changes. Using a
 panel of data on Flemish municipalities covering the period 1989-1996, we
 also find clear evidence of asymmetrical reactions. More precisely, the
 results suggest the presence of a fiscal replacement type of asymmetry:
 when grants grow, municipalities spend most of the additional revenue.
 However, when grants fall, spending is unaffected and municipalities
 compensate the loss through additional taxation. 
Journal: Applied Economics 
Pages: 1329-1334 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010004536 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004536 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1329-1334




Template-Type: ReDIF-Article 1.0
Author-Name: Rodney Paul 
Author-X-Name-First: Rodney 
Author-X-Name-Last: Paul 
Author-Name: Dragan Miljkovic 
Author-X-Name-First: Dragan 
Author-X-Name-Last: Miljkovic 
Author-Name: Viju Ipe 
Author-X-Name-First: Viju 
Author-X-Name-Last: Ipe 
Title: Market integration in US gasoline markets 
Abstract:
  This paper analyses the degree of market integration in the retail
 gasoline markets in the United States after it was completely deregulated
 in 1981. The monthly average prices of unleaded regular gasoline,
 excluding taxes, from January 1983 to December of 1998 for five US
 Petroleum Administration Defense Districts were considered in the
 analysis. There is evidence of a high degree of market integration in the
 gasoline markets as evidenced by the Engel and Granger and Johansen
 cointegration tests, but perfect market integration is rejected in all but
 a few cases. 
Journal: Applied Economics 
Pages: 1335-1340 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010004545 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004545 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1335-1340




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow 
Author-X-Name-First: Michael 
Author-X-Name-Last: Marlow 
Title: Bureaucracy and student performance in US public schools 
Abstract:
  This paper tests the hypothesis that monopoly power of school districts
 allows bureaucratic expansion and fosters poor academic performance in the
 public school system in California. Evidence indicates that monopoly power
 is positively associated with employment of administrators and teachers,
 and therefore supports the bureaucratic expansion hypothesis. While
 numbers of teachers do not influence performance measures, numbers of
 administrators are shown to positively affect performance - results that
 suggest that too many teachers, but too few administrators, are employed.
 While bureaucracy theory may explain the resource misallocation, other
 reasons might include rising public pressures on hiring teachers over
 administrators, spending equalization policies, and the weak California
 economy in the period under investigation. 
Journal: Applied Economics 
Pages: 1341-1350 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010005229 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010005229 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1341-1350




Template-Type: ReDIF-Article 1.0
Author-Name: Azzeddine Azzam 
Author-X-Name-First: Azzeddine 
Author-X-Name-Last: Azzam 
Author-Name: David Rosenbaum 
Author-X-Name-First: David 
Author-X-Name-Last: Rosenbaum 
Title: Differential efficiency, market structure and price 
Abstract:
  A persistent question in industrial economics is the underpinning of the
 link between market concentration and price. How much of the link can be
 attributed to market power and how much to market efficiency? This paper
 develops a theoretical model to address that question. Applied to the US
 portland cement industry, the model indicates that both impacts matter. In
 relative terms, however, the market power effect is twice as large as the
 efficiency effect. An implication for merger policy is that the beneficial
 efficiency effects of mergers may not be obtained without the detrimental
 market power effects as well. 
Journal: Applied Economics 
Pages: 1351-1357 
Issue: 10 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010006615 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010006615 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1351-1357




Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Paradiso 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Paradiso 
Author-Name: Antonella Trisorio 
Author-X-Name-First: Antonella 
Author-X-Name-Last: Trisorio 
Title: The effect of knowledge on the disparity between hypothetical and real willingness to pay 
Abstract:
  The use of a contingent valuation (CV) method is controversial among
 economists because it is based on hypothetical rather than real economic
 choices. This paper reports the results of an experiment designed to
 elicit the real and the hypothetical willingness to pay (WTP) for a
 private good. The effect of different settings of knowledge (direct and
 indirect) of the good on subjects' valuation behaviour are investigated.
 The findings show that (i) a direct knowledge of the good reduces the
 observed disparity between hypothetical and real WTP; and that (ii)
 different settings of knowledge generate different perceptions of the
 characteristics of the good. 
Journal: Applied Economics 
Pages: 1359-1364 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840152478039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840152478039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1359-1364




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Reinhardt 
Author-X-Name-First: Frank 
Author-X-Name-Last: Reinhardt 
Author-Name: David Giles 
Author-X-Name-First: David 
Author-X-Name-Last: Giles 
Title: Are cigarette bans really good economic policy? 
Abstract:
  This study investigates the quarterly relationship between the quantity
 of cigarettes sold, real disposable income per capita, and the relative
 price level of cigarettes in Canada. Careful attention is paid to the
 nonstationarity of the data and the dynamic specification of the model. It
 is concluded that cigarette demand is extremely insensitive to price and
 income changes. This is evidence of the large consumer surplus smokers
 enjoy and the large revenue increasing potential of a cigarette tax
 increase policy, as opposed to cigarette bans. 
Journal: Applied Economics 
Pages: 1365-1368 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010007489 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007489 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1365-1368




Template-Type: ReDIF-Article 1.0
Author-Name: Denise Stanley 
Author-X-Name-First: Denise 
Author-X-Name-Last: Stanley 
Author-Name: Sirima Bunnag 
Author-X-Name-First: Sirima 
Author-X-Name-Last: Bunnag 
Title: A new look at the benefits of diversification: lessons from Central America 
Abstract:
  Recent trends of export diversification in Central America may lower
 foreign exchange earnings instability there. Four countries-Costa Rica, El
 Salvador, Honduras, and Guatemala-are analysed across a twenty-year
 period. The paper uses United Nations Commodity Trade Statistics to
 explain why Costa Rica and Honduras have enjoyed greater earnings
 stability in recent years, despite the fact that Honduras has not greatly
 diversified its export products and markets. Despite the growth of new
 agricultural and manufacturing goods, traditional primary products still
 dominate the countries' export portfolios. Specific products within each
 of the four broad product category groups contribute to the varied country
 outcomes. Summary statistics from the United Nations (panel) data suggest
 newer agricultural exports have not stabilized Guatemalan and Salvadoran
 export earnings, while Honduras has enjoyed relatively stable banana
 export revenues and Costa Rica has benefited from the smooth flow of
 microelectronic products. Further panel data regression analysis shows
 country size and intangible country effects also explain parts of the
 detrended earnings deviation in addition to product base and level of
 diversification. 
Journal: Applied Economics 
Pages: 1369-1383 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010007498 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007498 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1369-1383




Template-Type: ReDIF-Article 1.0
Author-Name: Vincenzo Atella 
Author-X-Name-First: Vincenzo 
Author-X-Name-Last: Atella 
Author-Name: Beniamino Quintieri 
Author-X-Name-First: Beniamino 
Author-X-Name-Last: Quintieri 
Title: Do R&D expenditures really matter for TFP? 
Abstract:
  Recently, several studies have emphasized the role of R&D expenditure in
 determining Total Factor Productivity (TFP). In this paper it is shown
 that the relationship between R&D variables and TFP is far from being
 established. In particular, by using data for the Italian economy, it is
 found that the estimated effects of R&D variables on TFP crucially depends
 on: (i) the way in which the production function, used to derive Solow
 residuals, is defined; (ii) the numbers of maintained hypotheses used to
 estimate Solow residuals; (iii) the level of aggregation of the data
 employed in the empirical analysis. 
Journal: Applied Economics 
Pages: 1385-1389 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010007939 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007939 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1385-1389




Template-Type: ReDIF-Article 1.0
Author-Name: Susan Averett 
Author-X-Name-First: Susan 
Author-X-Name-Last: Averett 
Title: Moonlighting: multiple motives and gender differences 
Abstract:
  This paper examines the incidence and reasons for moonlighting with a
 focus on gender differences. The study specifies and estimates a bivariate
 probit model of labour supply and the decision to hold more than one job.
 It is found that the factors leading men and women to moonlight are
 similar. A wage decomposition analysis reveals that 93 percent of the
 differential between male and female moonlighters' wages is not explained
 by differences in characteristics, and little connection is found between
 an individual's human capital and their moonlighting wage. Finally, it is
 found that moonlighters are less likely to report their income. 
Journal: Applied Economics 
Pages: 1391-1410 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010007957 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007957 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1391-1410




Template-Type: ReDIF-Article 1.0
Author-Name: Ozgur Berk Kan 
Author-X-Name-First: Ozgur Berk 
Author-X-Name-Last: Kan 
Title: The evidence of strategic pricing policies of Turkish textile exports 
Abstract:
  This paper examines the strategic pricing behaviour (Pricing to Market;
 PTM) policies of textile exports in the 1990s for a hyperinflation
 country, Turkey, whose currency has been depreciating continually for the
 last two decades. The findings show that Turkish textile export categories
 exhibit evidence of strategic pricing behaviour when the Turkish textiles
 export data is analysed for different frequencies. The results show that
 evidence of strategic pricing behaviour is observed in response to changes
 in real exchange rates for textile exports for closer lagging periods and
 strategic pricing behaviour diminishes with further lagging periods. Also,
 evidence of strategic pricing behaviour is observed in a more recurrent
 fashion with higher frequency data, three-month periods, than with
 relatively lower frequency data, six-month and 12-month periods. Another
 interesting finding is that Turkish textile exporters prefer to increase
 their prices as a reaction if they had adjusted their prices in an
 overshooting fashion in response to real exchange changes in the previous
 period. The most important finding of the paper is that while Turkish
 textile exporters prefer to adjust their export pricing without fully
 absorbing the real exchange depreciation and by increasing their relative
 markups for some textile categories, they prefer to adjust their export
 prices by lowering their markups in addition to fully absorbing the real
 exchange depreciation for some other textile categories in order to
 increase their market share overseas. 
Journal: Applied Economics 
Pages: 1411-1421 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010007966 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007966 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1411-1421




Template-Type: ReDIF-Article 1.0
Author-Name: John List 
Author-X-Name-First: John 
Author-X-Name-Last: List 
Title: Determinants of securing academic interviews after tenure denial: evidence from a zero-inflated Poisson model 
Abstract:
  This paper uses a new data set to estimate empirically the optimal job
 search strategies for recently non-tenured economists seeking to obtain an
 academic job. Estimates from a zero inflated Poisson model suggest that a
 portion of interview counts is beyond the candidate's control as age,
 colour of skin, gender, and citizenship all play a part in the interview
 decision. A candidate can substantially enhance the probability of
 obtaining initial interviews by maintaining quality research and teaching
 portfolios, however. 
Journal: Applied Economics 
Pages: 1423-1431 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010009856 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009856 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1423-1431




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Zofio 
Author-X-Name-First: Jose 
Author-X-Name-Last: Zofio 
Author-Name: C. A. Knox Lovell 
Author-X-Name-First: C. A. Knox 
Author-X-Name-Last: Lovell 
Title: Graph efficiency and productivity measures: an application to US agriculture 
Abstract:
  Hyperbolic measures of efficiency and productivity change with respect to
 a graph representation of production technology allow researchers to
 consider output and input dimensions simultaneously in measuring producer
 performance. Hyperbolic efficiency measures have been proposed, but
 empirical implementation has not followed, either in efficiency analysis
 or in productivity analysis. The objectives of this paper are to define
 hyperbolic performance measures on a graph representation of production
 technology, to motivate their use by stating some of their advantages over
 their radial counterparts, and to introduce a direct formulation to
 calculate them making use of Data Envelopment Analysis techniques. The
 ideas are illustrated by calculating hyperbolic efficiency and Malmquist
 productivity indexes for a US agricultural panel data set. 
Journal: Applied Economics 
Pages: 1433-1442 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010009865 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009865 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1433-1442




Template-Type: ReDIF-Article 1.0
Author-Name: Abereniye Atemie-Obuoforibo 
Author-X-Name-First: Abereniye 
Author-X-Name-Last: Atemie-Obuoforibo 
Title: Public policies: will policy be ineffective if welfare is a random-walk 
Abstract:
  This study contradicts the view that policy cannot be effective if the
 welfare variable is a random-walk. Also, the study disagrees with the
 methodology employed by some proponents of this view, and goes on to show
 that the conclusion of policy ineffectiveness was only due to a wrong
 inference procedure. Furthermore, it points out that the notion of policy
 effectiveness suggests the examination of the relationship between policy
 and welfare; hence, what to look for is not a trend in the individual time
 series, but a common trend which relates the policy instrument and the
 welfare-variable in the policy environment under consideration. 
Journal: Applied Economics 
Pages: 1443-1453 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010009874 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009874 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1443-1453




Template-Type: ReDIF-Article 1.0
Author-Name: Jostein Grytten 
Author-X-Name-First: Jostein 
Author-X-Name-Last: Grytten 
Author-Name: Fredrik Carlsen 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Carlsen 
Author-Name: Irene Skau 
Author-X-Name-First: Irene 
Author-X-Name-Last: Skau 
Title: The income effect and supplier induced demand. Evidence from primary physician services in Norway 
Abstract:
  A much debated issue within the health economic literature is whether
 physicians can induce demand for their services. The relationship between
 physicians' 'nonpractice income' and supply of primary physician services
 in Norway is examined. It is argued that, if inducement exists, physicians
 with a low nonpractice income who work in municipalities where competition
 for patients is high, compensate for lack of patients by inducing demand.
 This model is adapted to the institutional setting of the Norwegian
 primary physician services, where there is a fixed fee schedule. The
 analyses were performed on a large set of data, encompassing all primary
 care physicians in Norway who are remunerated per item of treatment. Data
 on output in practice were merged with information about nonpractice
 income from the tax forms of the physician and her/his spouse. In
 municipalities with high physician density, nonpractice income had no
 effect on the number of consultations per physician, or on the number of
 treatment items per consultation. The results are interpreted as evidence
 against the inducement hypothesis. 
Journal: Applied Economics 
Pages: 1455-1467 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010009883 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009883 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1455-1467




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Finaldi Russo 
Author-X-Name-First: Paolo Finaldi 
Author-X-Name-Last: Russo 
Author-Name: Paola Rossi 
Author-X-Name-First: Paola 
Author-X-Name-Last: Rossi 
Title: Credit constraints in Italian industrial districts 
Abstract:
  Italy is characterized by strong differences both in the productive and
 in the financial structure. Small and medium firms tend to concentrate in
 the so called 'Marshallian industrial district', whose productive system
 has been thoroughly studied but whose financial features are partially
 overlooked. This paper aims at investigating how the location of a firm in
 an industrial district affects its ability to resort to external finance,
 mostly bank loans. The econometric analysis on a panel of 1700 firms over
 the 1989-1995 period shows that firms located inside industrial districts
 have an advantage in terms of financial relations with the banking system:
 both the cost of credit and the probability to face financial constraints
 are lower. Nevertheless, the cyclical pattern of this advantage is not in
 favour of district firms: following the tightening of monetary policy,
 increases in interest rates on bank loans are proportionally higher for
 firms inside the district; furthermore, also the advantage consisting in
 an easier access to credit market disappears after the 1992-1993
 recession. 
Journal: Applied Economics 
Pages: 1469-1477 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010010467 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010010467 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1469-1477




Template-Type: ReDIF-Article 1.0
Author-Name: Asher Tishler 
Author-X-Name-First: Asher 
Author-X-Name-Last: Tishler 
Author-Name: Ron Ventura 
Author-X-Name-First: Ron 
Author-X-Name-Last: Ventura 
Author-Name: John Watters 
Author-X-Name-First: John 
Author-X-Name-Last: Watters 
Title: Cellular telephones in the Israeli market: the demand, the choice of provider and potential revenues 
Abstract:
  This study presents the methodology, the estimates and a scenario for
 forecasting the demand for cellular telephones and their use in Israel.
 The analysis was based on the integration of three sub-models. The
 estimate of the consumer's decision on whether to purchase a cellular
 telephone and what type was obtained by using a discrete choice model of
 the multinomial logit type. The total number of cellular telephone
 purchases to be made in Israel during the years 1998-2008 was estimated
 using a logistic growth model employing aggregate data over time. The
 anticipated demand for airtime was based on findings of a survey carried
 out on a national sample, and on actual usage data on the various
 consumers during the years prior to the survey. The research shows the
 substantial economic potential of Israel's cellular telephone market. 
Journal: Applied Economics 
Pages: 1479-1492 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010011916 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010011916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1479-1492




Template-Type: ReDIF-Article 1.0
Author-Name: David Owyong 
Author-X-Name-First: David 
Author-X-Name-Last: Owyong 
Author-Name: Shandre Thangavelu 
Author-X-Name-First: Shandre 
Author-X-Name-Last: Thangavelu 
Title: An empirical study on public capital spillovers from the USA to Canada 
Abstract:
  The effect of public capital on private sector productivity has received
 much attention in the literature. The impact of an adjacent country's
 public capital on domestic productivity has, however, not been previously
 examined. This paper attempts to fill this gap by examining the
 possibility of such spillovers from the USA to Canada. Due to close
 proximity of both countries, the hypothesis of the paper is that these
 spillovers are important. A production function model introduces US public
 capital as an exogenous variable and tests for its significance. The
 results indicate positive spillovers from the USA public capital to
 Canadian productivity. 
Journal: Applied Economics 
Pages: 1493-1499 
Issue: 11 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010011925 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010011925 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1493-1499




Template-Type: ReDIF-Article 1.0
Author-Name: Lila Truett 
Author-X-Name-First: Lila 
Author-X-Name-Last: Truett 
Author-Name: Dale Truett 
Author-X-Name-First: Dale 
Author-X-Name-Last: Truett 
Title: The Spanish automotive industry: scale economies and input relationships 
Abstract:
  This paper investigates the existence of economies of scale in the
 Spanish automobile industry as well as the substitution possibilities
 between input pairs and the direct and cross price elasticities of demand
 for the various inputs by estimating a translog cost function for both a
 three input model involving capital, labour, and intermediate goods as
 well as a four input model where energy is separated from other
 intermediate goods. The results of this study are consistent with the
 hypothesis of economies of scale in the Spanish automobile industry,
 particularly at the low and mean levels of output. These results also are
 consistent with the hypothesis that capital is a substitute for the other
 inputs, but that labour and intermediate goods are complements. Labour and
 energy also appear to have a complementary relationship over most of the
 data points in this study. The significance of a complementary
 relationship between labour and intermediate goods is that any attempt by
 the Spanish government to restrict imports of these inputs, resulting in
 higher domestic prices for them, may aggravate an already serious domestic
 unemployment problem. 
Journal: Applied Economics 
Pages: 1503-1513 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840012960 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840012960 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1503-1513




Template-Type: ReDIF-Article 1.0
Author-Name: C. J. A. Van Vliet Rene 
Author-X-Name-First: C. J. A. Van Vliet 
Author-X-Name-Last: Rene 
Title: Effects of price and deductibles on medical care demand, estimated from survey data 
Abstract:
  This paper estimates the price sensitivity of medical care demand from
 cross-sectional survey data by relating medical consumption to
 approximated copayment rates resulting from deductibles. Instead of the
 deductibles itself, a transformation is used that better takes into
 account that expected expenditures at policy level play an important role
 in the reaction of consumers with regard to their deductible. This
 transformation approximates the average expected copayment rate, that is,
 the portion of expenditures that one may expect - at the beginning of the
 year - to pay out-of-pocket, given the deductible and given the expected
 expenditures at policy level. The principal finding is an estimated price
 elasticity of medical care demand of -0.079. The highest price sensitivity
 was found for physiotherapy visits (-0.12) and general practitioner visits
 (-0.085), and the lowest for specialist visits (-0.074) and prescription
 drugs (-0.056). Hospital care demand appeared not to be affected by
 deductibles. 
Journal: Applied Economics 
Pages: 1515-1524 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010013626 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010013626 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1515-1524




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Anker 
Author-X-Name-First: Peter 
Author-X-Name-Last: Anker 
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Title: On the relationship between the value of the mark and German production 
Abstract:
  This study employs Johansen's cointegration technique to determine the
 long-run relationship between exchange value of the DM and German
 production. It is shown that depreciation of the DM has a long-run
 expansionary impact on German production. This conclusion is based on a
 new method of selecting the order of VAR and the appropriate cointegrating
 vector simultaneously. 
Journal: Applied Economics 
Pages: 1525-1530 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010012933 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010012933 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1525-1530




Template-Type: ReDIF-Article 1.0
Author-Name: &#xd8;ystein Th&#xf8;gersen 
Author-X-Name-First: &#xd8;ystein 
Author-X-Name-Last: Th&#xf8;gersen 
Title: Reforming social security: assessing the effects of alternative funding strategies 
Abstract:
  Population ageing implies that the large pay-as-you-go social security
 programmes implemented in many OECD economies will run into severe
 financial problems. By means of a numerical overlapping generations model,
 this paper investigates the intergenerational welfare effects of a
 transition to funded security programmes. Such programmes imply permanent
 increases in the welfare of the young and unborn generations. It is
 demonstrated that the size of the welfare gains varies significantly
 between alternative funding strategies. A nonindividualized funding
 strategy characterized by increased government asset accumulation triggers
 considerable welfare gains through increased asset returns in the future.
 Even larger welfare gains may be realized by an individual funding
 strategy characterized by increased asset accumulation accompanied by an
 adoption of actuarial supplementary pensions (i.e. actuarial supplementary
 pensions combined with a fixed minimum pension) which reduces future tax
 distortions drastically. 
Journal: Applied Economics 
Pages: 1531-1540 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010014436 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014436 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1531-1540




Template-Type: ReDIF-Article 1.0
Author-Name: Pilar Beneito 
Author-X-Name-First: Pilar 
Author-X-Name-Last: Beneito 
Author-Name: Javier Ferri 
Author-X-Name-First: Javier 
Author-X-Name-Last: Ferri 
Author-Name: M. Luisa Molto 
Author-X-Name-First: M. Luisa 
Author-X-Name-Last: Molto 
Author-Name: Ezequiel Uriel 
Author-X-Name-First: Ezequiel 
Author-X-Name-Last: Uriel 
Title: Determinants of the demand for education in Spain 
Abstract:
  The aim of this paper is to estimate an equation for household demand for
 both secondary and university education, using an estimation of the
 opportunity cost associated with the decision to invest in education.
 Limited dependent variable models are applied to the data provided by the
 Family Budget Survey 1991 for Spain. The results show that the social and
 economic status of the family has a comparatively greater impact on
 household expenditure on secondary education than on university education.
 The opportunity cost is also shown to be a decisive variable in the
 decision to invest in secondary education, although the results are less
 conclusive in the case of university education. 
Journal: Applied Economics 
Pages: 1541-1551 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010009892 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009892 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1541-1551




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Anker 
Author-X-Name-First: Peter 
Author-X-Name-Last: Anker 
Title: ECB monetary policy and the DM-dollar exchange rate: evidence from a Bayesian VAR 
Abstract:
  Since the start of the European Monetary Union (EMU) in January 1999, the
 DM has depreciated considerably against the currencies of major industrial
 countries. Whether there is a systematic failure of vector autoregressive
 (VAR) models fitted to the pre-EMU period to predict forward looking
 variables in the year 1999 is investigated. Conditional forecasts are used
 in order to capture the potential effects of real shocks and to assess the
 ECB's reaction to these shocks. The findings suggest that neither real
 shocks nor the actual ECB-policy reaction can explain the exchange-rate
 devaluation. This points to important effects of increased uncertainty
 following the regime shift resulting in an increased risk premium in the
 foreign exchange market. 
Journal: Applied Economics 
Pages: 1553-1562 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010012942 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010012942 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1553-1562




Template-Type: ReDIF-Article 1.0
Author-Name: Nikiforos Laopodis 
Author-X-Name-First: Nikiforos 
Author-X-Name-Last: Laopodis 
Title: Effects of government spending on private investment 
Abstract:
  This paper investigates the effects of military and non-military public
 expenditures on gross private investment using cointegration and
 error-correction analysis. The latter type of public spending is
 disagreggated into expenditures of infrastructure, consumption and other
 general government expenditures. The empirical evidence from four emerging
 European countries namely, Greece, Ireland, Portugal and Spain suggests
 that in some cases public capital spending stimulates investment, while in
 others it depresses it. Also, the results tentatively indicate that
 defence spending exerts no influence on private investment, thus adding to
 the ongoing controversy of the economic effects of military spending. 
Journal: Applied Economics 
Pages: 1563-1577 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010011934 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010011934 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1563-1577




Template-Type: ReDIF-Article 1.0
Author-Name: A. B. Prakash 
Author-X-Name-First: A. B. 
Author-X-Name-Last: Prakash 
Author-Name: E. H. D'A. Oliver 
Author-X-Name-First: E. H. D'A. 
Author-X-Name-Last: Oliver 
Author-Name: K. Balcombe 
Author-X-Name-First: K. 
Author-X-Name-Last: Balcombe 
Title: Does building new roads really create extra traffic? Some new evidence 
Abstract:
  The debate that expenditure on new or existing roads induces more traffic
 has intensified during the 1990s in most developed countries. In this
 paper the controversy is readdressed from a UK perspective, using the
 method of Granger noncausality. Results indicate that aggregate
 expenditure on new and existing roads does not induce additional traffic
 in the Granger sense. Conversely, the results found that traffic Granger
 causes road expenditure. The importance of these results, along with
 issues concerning the selection and specification of dynamic models, are
 discussed. 
Journal: Applied Economics 
Pages: 1579-1585 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010013617 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010013617 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1579-1585




Template-Type: ReDIF-Article 1.0
Author-Name: Asifa Nahid 
Author-X-Name-First: Asifa 
Author-X-Name-Last: Nahid 
Author-Name: Abul Shamsuddin 
Author-X-Name-First: Abul 
Author-X-Name-Last: Shamsuddin 
Title: Immigration and the unemployment benefit programme in Australia 
Abstract:
  A widely held view is that immigrants contribute to public debt through
 their over representation in the unemployment benefit programme. An
 empirical investigation, based on the 1990 Income Distribution Survey,
 finds support for this view. In contrast to the US and Canadian studies,
 this paper observes that the probability of receiving unemployment
 benefits is higher for immigrants than the native-born population and
 immigrants, who participate in the unemployment benefit programme, also
 receive a greater amount of unemployment benefits. 
Journal: Applied Economics 
Pages: 1587-1597 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010014021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1587-1597




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Lim 
Author-X-Name-First: Christine 
Author-X-Name-Last: Lim 
Author-Name: Michael McAleer 
Author-X-Name-First: Michael 
Author-X-Name-Last: McAleer 
Title: Cointegration analysis of quarterly tourism demand by Hong Kong and Singapore for Australia 
Abstract:
  Hong Kong and Singapore are two of the most important and fastest growing
 markets for tourists to Australia. The purpose of this paper is to
 investigate movements in the long-run demand for tourist travel by these
 two origin countries for Australia. Some of the leading macroeconomic
 variables examined to explain tourism demand are incomes in Hong Kong and
 Singapore, tourism prices in Australia, and transportation costs and
 exchange rates between the two countries and Australia. Seasonally
 unadjusted quarterly data are used for Hong Kong for the period
 1975(1)-1996(4), and for 1980(4)-1996(4) for Singapore. Several proxy
 variables are used for the incomes of tourists from Hong Kong and
 Singapore to explain quarterly tourist arrivals to Australia. The
 augmented Dickey-Fuller test for unit roots is examined in the univariate
 framework, and Johansen's maximum likelihood procedure is used to test for
 cointegration and to estimate the number of cointegrating vectors. Error
 correction models are estimated to explain quarterly tourism demand by
 Hong Kong and Singapore for Australia. 
Journal: Applied Economics 
Pages: 1599-1619 
Issue: 12 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010014012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014012 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1599-1619




Template-Type: ReDIF-Article 1.0
Author-Name: John Gandar 
Author-X-Name-First: John 
Author-X-Name-Last: Gandar 
Author-Name: Richard Zuber 
Author-X-Name-First: Richard 
Author-X-Name-Last: Zuber 
Author-Name: R. Stafford Johnson 
Author-X-Name-First: R. Stafford 
Author-X-Name-Last: Johnson 
Title: Searching for the favourite-longshot bias down under: an examination of the New Zealand pari-mutuel betting market 
Abstract:
  This paper tests for the presence of the favourite-longshot bias in a new
 setting. This bias #150 the tendency for bettors to underbet favourites
 and overbet longshots #150 has been found in most studies of pari-mutuel
 and bookmaking betting markets in the USA, the UK and Australia. However,
 there is growing evidence that in at least some pari-mutuel betting
 markets there is no favourite-longshot bias. This paper examines the
 previously unexplored New Zealand pari-mutuel betting market on horse
 races for evidence of this bias. Utilizing a large sample of recent New
 Zealand thoroughbred horse races, it is found that while early, off-track
 bettors price this bias into odds, late (on-and off-track) bettors
 eliminate much of the bias by the close of betting. That is, the results
 reinforce the view that not all pari-mutuel betting markets are
 characterized by a favourite-longshot bias at the close of betting.
 Evidence is also found that late bettors in this market are smart bettors. 
Journal: Applied Economics 
Pages: 1621-1629 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010012951 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010012951 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1621-1629




Template-Type: ReDIF-Article 1.0
Author-Name: Roope Uusitalo 
Author-X-Name-First: Roope 
Author-X-Name-Last: Uusitalo 
Title: Homo entreprenaurus? 
Abstract:
  This paper examines the determinants of self-employment and transitions
 from salaried employment to self-employment using two sets of Finnish data
 from the 1990s. The results show that capital constraints have only a
 minor effect on new business starts. Human capital, in the form of
 intergenerational links in self-employment and psychological factors play
 a much larger role. The paper also provides empirical evidence that less
 risk-averse workers are more likely to become entrepreneurs. 
Journal: Applied Economics 
Pages: 1631-1638 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010015778 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1631-1638




Template-Type: ReDIF-Article 1.0
Author-Name: Erkan Erdil 
Author-X-Name-First: Erkan 
Author-X-Name-Last: Erdil 
Author-Name: I. Hakan Yetkiner 
Author-X-Name-First: I. Hakan 
Author-X-Name-Last: Yetkiner 
Title: A comparative analysis of inter-industry wage differentials: industrialized versus developing countries 
Abstract:
  This study aims to compare the available evidence on inter-industry wage
 structure for industrialized and developing countries and to find whether
 the industry wage differentials are consistent and stable independent of
 time and space. Moreover, it tries to clarify some of the determinants of
 industry wage differentials. International evidence supports the wage
 differential regularity across countries, and the factors underlying
 inter-industry wage differentials are found to be more or less the same
 for both industrialized and developing countries. 
Journal: Applied Economics 
Pages: 1639-1648 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010013608 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010013608 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1639-1648




Template-Type: ReDIF-Article 1.0
Author-Name: Dale Heien 
Author-X-Name-First: Dale 
Author-X-Name-Last: Heien 
Title: Habit, seasonality, and time aggregation in consumer behaviour 
Abstract:
  Habitual behaviour in consumer demand analysis is generally portrayed via
 some form of a lagged dependent variable model. The purpose of this paper
 is to explore the implications for habit behaviour of time aggregation.
 This is done by specifying both habit and seasonal components in demand
 relations. The results indicate that much of what has traditionally been
 identified as habitual behaviour is, in fact, seasonal effects. 
Journal: Applied Economics 
Pages: 1649-1653 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/000368401317035441 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368401317035441 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1649-1653




Template-Type: ReDIF-Article 1.0
Author-Name: Ziggy MacDonald 
Author-X-Name-First: Ziggy 
Author-X-Name-Last: MacDonald 
Author-Name: Stephen Pudney 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Pudney 
Title: Illicit drug use and labour market achievement: evidence from the UK 
Abstract:
  This study, using data from the British Crime Survey (BCS), examines the
 effect of drug use on occupational achievement. It starts by attempting to
 overcome the identification problem that results from the limited set of
 drug use questions presented in the BCS. Taking this into account, and
 allowing for the endogeneity of drug use in equations for unemployment and
 labour market outcomes, that a mild positive association with 'soft' drugs
 and occupational achievement is observed that diminishes with age. This
 relationship holds for males but not for females. In contrast, it is also
 found that past use of 'hard' drugs significantly increases the likelihood
 of current unemployment, although it appears to be unrelated to
 occupational success, conditional on achieving employment. 
Journal: Applied Economics 
Pages: 1655-1668 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010014454 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1655-1668




Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Ward 
Author-X-Name-First: Melanie 
Author-X-Name-Last: Ward 
Title: The gender salary gap in British academia 
Abstract:
  This paper considers salary determination and the gender salary gap in
 the academic labour market utilizing a particularly detailed data set of
 academics from five old established Universities. Results reveal an
 aggregate gender salary differential for academic staff of 15%. Most of
 this differential can, however, be explained by our model. Evidence
 suggests a limited opportunity for female academics to combine career and
 family, despite the flexibility of an academic job and emphasizes the
 importance of mobility to the male career. Publication record is found to
 be an important determinant of salary. 
Journal: Applied Economics 
Pages: 1669-1681 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010014445 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014445 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1669-1681




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Lurdes Castro Martins 
Author-X-Name-First: Maria Lurdes Castro 
Author-X-Name-Last: Martins 
Title: Social welfare loss due to second-best pricing: an application to the Portuguese telecommunications 
Abstract:
  The telecommunications industry is usually characterized by low marginal
 costs and significant fixed costs which are the conditions for the
 inefficiency of marginal cost pricing. In such cases theory postulates
 that optimal pricing is obtained by maximizing welfare subject to a
 restriction of viability of the firm: the second-best pricing scheme. The
 possible welfare losses due to second-best pricing varies according to the
 values of marginal costs, prices and demand elasticities. This paper
 analyses to what extent the second-best pricing has been achieved in the
 Portuguese telecommunications firm CTT, over the period 1950#150;1984 as
 well as the magnitude of the price-cost margins and welfare losses
 created. We obtained empirical evidence of the presence of economies of
 scale, a welfare loss estimate of 1% of the telecommunications receipts
 and a result that price was 40% greater than marginal cost. We concluded
 that price regulation and public ownership of the firm did not seriously
 affect social welfare over the sample period (it should be noted that it
 is the non-digital and fixedwire infrastructure period). Therefore, it is
 important to study the impact of new digital and non-wire technologies and
 new services provided in the old regulatory scenery. 
Journal: Applied Economics 
Pages: 1683-1687 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010014463 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014463 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1683-1687




Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Colombo 
Author-X-Name-First: Emilio 
Author-X-Name-Last: Colombo 
Title: Determinants of corporate capital structure: evidence from Hungarian firms 
Abstract:
  This paper investigates the capital structure of Hungarian firms using a
 cross-section and a panel data approach. The data set is composed of
 balance sheet data and information on market structure for 1100 firms from
 1992 to 1996. Evidence is found of imperfections that constrain firms in
 the achievement of their optimal capital structure, but also some positive
 indications: there are no distortions typical of the planned system and no
 signs of the presence of soft budget constraints. 
Journal: Applied Economics 
Pages: 1689-1701 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010015057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015057 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1689-1701




Template-Type: ReDIF-Article 1.0
Author-Name: Khalid Yousif Khalafalla 
Author-X-Name-First: Khalid Yousif 
Author-X-Name-Last: Khalafalla 
Author-Name: Alan Webb 
Author-X-Name-First: Alan 
Author-X-Name-Last: Webb 
Title: Export-led growth and structural change: evidence from Malaysia 
Abstract:
  Many studies have tried to establish the causal link between export
 expansion and economic growth. This contribution is to recognize that
 structural changes will change the sources of growth and this will affect
 the export-growth relationship. A country case study approach is used
 focusing on Malaysia, a country with one of the world's highest sustained
 growth rates and a long history of commodity trade. We use VAR analysis of
 Malaysian quarterly trade and GDP growth from 1965 to 1996. Trade data are
 disaggregated into primary and manufactures exports and causality tests
 are applied to the entire period as well as two subperiods #150 the 1965
 #1501980 period when policy emphasis was on import substitution and the
 1981#1501996 period when policies favoured export-led growth. Statistical
 tests confirm export-led growth for the full period and for the period to
 1980 but tests on the 1981#1501996 period show growth causing exports.
 Primary exports had a stronger direct impact on economic growth than
 manufactures. The weakening support for export-led growth after Malaysia
 shifted to an export-oriented development strategy is associated with
 structural changes associated with industrialization. Interaction among
 trade and growth variables becomes more complex with a broadening export
 base and more diverse sources of growth. 
Journal: Applied Economics 
Pages: 1703-1715 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010015066 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015066 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1703-1715




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Gonzalo 
Author-X-Name-First: Maria Teresa 
Author-X-Name-Last: Gonzalo 
Author-Name: Jan Saarela 
Author-X-Name-First: Jan 
Author-X-Name-Last: Saarela 
Title: An evaluation of the management of the Finnish employment service 
Abstract:
  This paper analyses the efficiency of the Finnish Employment Service's
 management in selecting unemployed individuals who are offered a job. The
 database used considers short-term unemployed individuals who face the
 same labour market conditions in 1996. Duration analysis with a Weibull
 model has been performed in order to study the determinants of the
 transition probability from unemployment into employment and the impact of
 receiving job offers through the Employment Service (ES). In order to
 carry this out, it has been taken into account that the reception of such
 job offers may be endogenous because the ES selects the individuals who
 will receive the offers. The empirical results suggest that the decisions
 made by the ES are adequate in the sense that they increase the benefit of
 society, compared with a random assignment of the vacancies offered
 through the ES. Moreover, the effects of the other determinants depend on
 whether the individual receives offers. The results also point out that
 individuals who receive no offers through the ES are more likely, as time
 passes by, to be discouraged in searching for a job than those who do. 
Journal: Applied Economics 
Pages: 1717-1725 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010015354 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1717-1725




Template-Type: ReDIF-Article 1.0
Author-Name: Cliff Huang 
Author-X-Name-First: Cliff 
Author-X-Name-Last: Huang 
Author-Name: Chien-Fu Jeff Lin 
Author-X-Name-First: Chien-Fu Jeff 
Author-X-Name-Last: Lin 
Author-Name: Jen-Chi Cheng 
Author-X-Name-First: Jen-Chi 
Author-X-Name-Last: Cheng 
Title: Evidence on nonlinear error correction in money demand: the case of Taiwan 
Abstract:
  This paper proposes a nonlinear error-correction model based upon smooth
 transition regression methodology. The model is specified such that the
 short-run adjustment toward long-run equilibrium is nonlinear and that the
 error correction is a smooth function of long-run deviation. Empirical
 results obtained from estimating M2 money demand in Taiwan support the
 hypothesis of a nonlinear error-correction process and provide better
 interpretation of change in the demand for money. 
Journal: Applied Economics 
Pages: 1727-1736 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010017631 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017631 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1727-1736




Template-Type: ReDIF-Article 1.0
Author-Name: Amy Basile 
Author-X-Name-First: Amy 
Author-X-Name-Last: Basile 
Author-Name: Joseph Joyce 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Joyce 
Title: Asset bubbles, monetary policy and bank lending in Japan: an empirical investigation 
Abstract:
  Asset prices rose rapidly in Japan during the latter half of the 1980s,
 and then declined as quickly in the early 1990s. Their behaviour is
 consistent with the existence of speculative 'bubbles' in these markets.
 This paper investigates the dynamic relationships among stock and land
 prices in Japan, output, and monetary and bank lending variables. The
 results of causality tests and variance decompositions are reported for
 two time periods, 1972#1501985 and 1986#1501991. The price bubbles
 affected each other in the first period, although the size of this impact
 is dependent on the choice of variables in the VARs. In the bubble period,
 there is strong evidence that the stock market bubble was determined by
 its own past and also influenced the land market bubble, accounting for a
 significant proportion of the variance of the land market bubble. However,
 neither output, the money supply nor the lending variables were
 significant in the causality tests or in explaining the variation of the
 two assset bubbles. 
Journal: Applied Economics 
Pages: 1737-1744 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010018621 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010018621 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1737-1744




Template-Type: ReDIF-Article 1.0
Author-Name: Gyan Pradhan 
Author-X-Name-First: Gyan 
Author-X-Name-Last: Pradhan 
Author-Name: Kamal Upadhyaya 
Author-X-Name-First: Kamal 
Author-X-Name-Last: Upadhyaya 
Title: The impact of budget deficits on national saving in the USA 
Abstract:
  This paper analyses the effect of government budget deficits on national
 saving in the USA utilizing annual time series data from 1967 to 1996. A
 model that includes budget deficits, money supply, real exchange rate,
 real interest rate, and the proportion of working age population to total
 population to explain national saving is developed. After examining the
 time series properties of the data an error correction model is estimated.
 The overall results suggest that an increase in government budget deficits
 tend to reduce national saving. The working age population coming out of
 the baby boom generation has positively contributed to an increase in
 national saving. 
Journal: Applied Economics 
Pages: 1745-1750 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010020132 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010020132 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1745-1750




Template-Type: ReDIF-Article 1.0
Author-Name: Alistair Bruce 
Author-X-Name-First: Alistair 
Author-X-Name-Last: Bruce 
Author-Name: Johnnie Johnson 
Author-X-Name-First: Johnnie 
Author-X-Name-Last: Johnson 
Title: Efficiency characteristics of a market for state contingent claims 
Abstract:
  This paper concludes that a market for state-contingent claims (UK
 horserace betting) displays evidence of pervasive but heterogeneous forms
 of inefficiency, in significant contrast to earlier investigations. Using
 hitherto unavailable data, comparison of notional returns implicit in
 parallel sets of bookmaker and parimutuel odds identifies inefficiency in
 terms of zones of distinct but contrasting forms of cross-;market returns
 differential. The inefficiency is rationalized in terms of both buyer and
 supplier behaviour; its durability is explained in terms of limited
 arbitrage opportunities. 
Journal: Applied Economics 
Pages: 1751-1754 
Issue: 13 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840110052785 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110052785 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1751-1754




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Smith 
Author-X-Name-First: Martin 
Author-X-Name-Last: Smith 
Title: Breeding incentive programmes and demand for California thoroughbred racing: is there a quality/quantity tradeoff? 
Abstract:
  Both quantity of horses and quality stimulate demand for horse race
 gambling. This paper addresses the potential for a quantity/quality
 tradeoff due to breeding incentives for California thoroughbreds.
 Econometric analysis is used to assess the demand for quality and quantity
 of horses, and results suggest the likely net benefit of breeding
 incentives on the industry at large. 
Journal: Applied Economics 
Pages: 1755-1762 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010019675 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010019675 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1755-1762




Template-Type: ReDIF-Article 1.0
Author-Name: Julian Morgan 
Author-X-Name-First: Julian 
Author-X-Name-Last: Morgan 
Title: Employment security and the demand for labour in Europe 
Abstract:
  This paper analyses the impact of employment security on labour demand.
 The approach taken is to estimate a dynamic labour demand function that
 allows for the effect of changes in a measure of employment security
 derived from surveys of employers. The estimation uses panel data on
 employment (both in terms of the total number of employees and total hours
 worked) for seven European countries for the period 1981-1994. The results
 suggest that employment security can have significant effects in slowing
 down the dynamic adjustment of labour demand. The paper also finds some
 (less robust) evidence that employment security can increase the long run
 level of labour demand in terms of total hours, but not the number of
 persons employed. 
Journal: Applied Economics 
Pages: 1763-1774 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010017659 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017659 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1763-1774




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Burton 
Author-X-Name-First: Michael 
Author-X-Name-Last: Burton 
Author-Name: Richard Dorsett 
Author-X-Name-First: Richard 
Author-X-Name-Last: Dorsett 
Title: The degree of monopsony power in agricultural labour markets, and the impact of the agricultural minimum wage: an application to craft workers in England and Wales 
Abstract:
  This paper uses cross-section data to examine the determinants of wages
 for agricultural craft workers over the period 1991-1994. Using limited
 dependent variable models to take account of the censoring in the data
 resulting from the minimum wage, we have investigated the degree to which
 agricultural and broader labour markets are integrated, the impact of tied
 housing on wages, and the extent to which the minimum wage truncates the
 wage distribution. 
Journal: Applied Economics 
Pages: 1775-1784 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010017668 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017668 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1775-1784




Template-Type: ReDIF-Article 1.0
Author-Name: Lindsay Meredith 
Author-X-Name-First: Lindsay 
Author-X-Name-Last: Meredith 
Author-Name: Dennis Maki 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Maki 
Title: Product cannibalization and the role of prices 
Abstract:
  The role of brand prices in contributing to product cannibalization is
 examined. Price elasticities and reference price theory are used to
 provide a theoretical foundation and empirical test for the impact of a
 firm's cheap brand on one of its expensive brands. Results are consistent
 with the conclusion that the market share of the company's premium brand
 was cannibalized by a growth in sales of its cheap brand. 
Journal: Applied Economics 
Pages: 1785-1793 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010015769 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015769 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1785-1793




Template-Type: ReDIF-Article 1.0
Author-Name: C. Couharde 
Author-X-Name-First: C. 
Author-X-Name-Last: Couharde 
Author-Name: J. Mazier 
Author-X-Name-First: J. 
Author-X-Name-Last: Mazier 
Title: The equilibrium exchange rates of European currencies and the transition to euro 
Abstract:
  The introduction of the euro raised two questions: what was the
 appropriate exchange rate of the European currencies for entry in the EMU?
 What were the main determinants of the external value of the euro? To
 bring some insight in the matter, the concept of equilibrium exchange
 rates was used, which illustrated the divergence between exchange rates
 and long run fundamentals. For each country, the equilibrium exchange rate
 was calculated from a simplified model of external trade which, in its
 reduced form, allows one to explicitly represent the structural
 determinants of exchange rates. To obtain supplementary results we also
 make an analysis of unit cost levels. The results suggest that although
 the central parities in force within the EMS were rather satisfactory and
 ought not to give rise subsequently to intra-European tensions, the
 European currencies were overvalued in terms of their equilibrium exchange
 rates and the dollar was undervalued. This misalignment thus provides
 support to justify the depreciation of the euro since its launch. 
Journal: Applied Economics 
Pages: 1795-1801 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010021717 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010021717 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1795-1801




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Romilly 
Author-X-Name-First: Peter 
Author-X-Name-Last: Romilly 
Author-Name: Haiyan Song 
Author-X-Name-First: Haiyan 
Author-X-Name-Last: Song 
Author-Name: Xiaming Liu 
Author-X-Name-First: Xiaming 
Author-X-Name-Last: Liu 
Title: Car ownership and use in Britain: a comparison of the empirical results of alternative cointegration estimation methods and forecasts 
Abstract:
  This paper addresses two problems faced by many forecasters in the
 transport sector, namely how to use a relatively small sample to forecast
 car ownership over a long period of time and avoid the difficulties caused
 by spurious or nonsense regressions. Five alternative estimation methods
 are used to test for cointegrating relationships between per capita car
 ownership (and use) and real per capita personable disposable income, real
 motoring costs and real bus fares. These are the Engle-Granger two-stage,
 the Phillips-Hansen fully modified, the Wickens-Breusch one-stage, the
 autoregressive distributed lag, and the Johansen maximum likelihood
 methods. The corresponding error correction models are estimated, and a
 comparison made between the derived short- and long-run demand
 elasticities for car ownership and use. The ex-post forecasting
 performance of the error correction models, together with an ARIMA model
 specification, is evaluated using a number of performance criteria. The
 long-range time series forecasts obtained from the cointegrating
 regressions are compared with those from the cross-sectional approach used
 by the UK Department of the Environment, Transport and the Regions, and
 the policy implications discussed. 
Journal: Applied Economics 
Pages: 1803-1818 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840011021708 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840011021708 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1803-1818




Template-Type: ReDIF-Article 1.0
Author-Name: Hilde Christiane Bj&#xf8;rnland 
Author-X-Name-First: Hilde Christiane 
Author-X-Name-Last: Bj&#xf8;rnland 
Title: Identifying domestic and imported core inflation 
Abstract:
  This paper estimates core inflation in Norway, identified as that
 component of inflation that has no long-run effect on GDP. The model
 distinguishes explicitly between domestic and imported core inflation. The
 results show that (domestic) core inflation is the main component of CPI
 inflation. However, CPI inflation misrepresents core inflation during some
 periods. The differences are well explained by the other shocks identified
 in the model, in particular the oil price shocks of the 1970s when Norway
 imported inflation, and the negative non-core (supply) shocks of the late
 1980s, which pushed inflation up temporarily relative to core inflation. 
Journal: Applied Economics 
Pages: 1819-1831 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010017640 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017640 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1819-1831




Template-Type: ReDIF-Article 1.0
Author-Name: James Ko 
Author-X-Name-First: James 
Author-X-Name-Last: Ko 
Author-Name: Carol Dahl 
Author-X-Name-First: Carol 
Author-X-Name-Last: Dahl 
Title: Interfuel substitution in US electricity generation 
Abstract:
  Ongoing changes in the US electricity market include restructuring and
 increased competition. With this unfettering of the market, the fuel
 choice in generation is expected to become more flexible and responsive.
 To investigate this hypothesis, studies of US electricity fuel choices
 over the last three decades are summarized and the most recent analysis is
 provided on a market very different from the one on which earlier studies
 were done. Modern data handling techniques allow the consideration of the
 most comprehensive database including 185 utilities on monthly data for
 1993. This paper finds fuel choice to show a considerable amount of price
 responsiveness, the amount of responsiveness is sensitive to the fuel
 substitution possibilities within the utility, and the amount of
 responsiveness seems to have increased recently for oil and natural gas. 
Journal: Applied Economics 
Pages: 1833-1843 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010021122 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010021122 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1833-1843




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Gil Pareja 
Author-X-Name-First: Salvador Gil 
Author-X-Name-Last: Pareja 
Title: Pricing to market in European automobile exports to OECD countries: a panel data approach 
Abstract:
  This paper investigates pricing to market behaviour using data for
 European auto exports. The empirical analysis uses forward instead of spot
 exchange rates. Cross-country and cross-product analyses reveal that
 pricing behaviour depends mainly on the class of product, while the
 country of origin and destination appears as less important. Furthermore,
 the data do not usually reject the hypothesis of a symmetric response of
 export prices to depreciations and appreciations of the exporter's
 currency. Finally, although the point estimates confirm the combined
 influence of the business cycle and the direction of the exchange rate
 movements on pricing to market in most cases, formal tests seldom provide
 statistical significance for this result. 
Journal: Applied Economics 
Pages: 1845-1856 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010020123 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010020123 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1845-1856




Template-Type: ReDIF-Article 1.0
Author-Name: David Giles 
Author-X-Name-First: David 
Author-X-Name-Last: Giles 
Author-Name: Patrick Caragata 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Caragata 
Title: The learning path of the hidden economy: the tax burden and tax evasion in New Zealand 
Abstract:
  This paper considers the 'learning curve' relationship between the
 aggregate tax rate and the relative size of the hidden economy in New
 Zealand. Some simple non-linear models are estimated so that the effects
 of changes in the effective tax rate on the underground economy can be
 simulated. This study finds that about half of the hidden activity in New
 Zealand is a learned response to changing opportunities and constraints in
 fiscal policy, but this amount varies over the business cycle. Simulating
 a zero tax rate permits us to discover the 'natural rate' of underground
 and criminal activity. Some partial lessons are drawn for taxation policy
 in that country. 
Journal: Applied Economics 
Pages: 1857-1867 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840110018720 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110018720 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1857-1867




Template-Type: ReDIF-Article 1.0
Author-Name: Matti Viren 
Author-X-Name-First: Matti 
Author-X-Name-Last: Viren 
Title: Modelling crime and punishment 
Abstract:
  This paper provides an extended supply of labour model which allows for
 different intensities of legal and illegal (criminal) activities and in
 which criminal activities may be considered both as work and leisure.
 Heterogeneity of individuals is also taken into account. The model is
 estimated from Finnish aggregate time-series data, pooled Finnish
 municipalities data and pooled international cross-country data. With the
 Finnish aggregate data, a volume index of crime is constructed and then
 used in testing the model. All empirical results give strong support to
 the hypothesis that apprehension and punishment are important deterrents
 of crime. By contrast, the role of sosioeconomic and demographic variables
 turns out to be of little importance. 
Journal: Applied Economics 
Pages: 1869-1879 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010017677 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017677 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1869-1879




Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon 
Author-X-Name-First: Franklin 
Author-X-Name-Last: Mixon 
Title: A discrete-time hazard model of the adoption of legislative television: evidence from the US Congress, 1961-1986 
Abstract:
  The present study examines the probability of the adoption of legislative
 television over time (1961-1986) in the US Congress using a discrete-time
 hazard model. Against a theoretical construct where political services are
 modelled as search/experience goods, evidence is provided suggesting that
 constituent homogeneity, relative power struggles involving the
 legislative branches of Congress and the White House, and the potential
 prowess of legislators in Congress regarding skilful use of television are
 all important facets in this probability model. Use of alternative data
 sources and statistical techniques, such as those presented here, works to
 provide a greater foundation of knowledge regarding the relationship
 between representative democracy and modern means of communication. 
Journal: Applied Economics 
Pages: 1881-1887 
Issue: 14 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010018252 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010018252 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1881-1887




Template-Type: ReDIF-Article 1.0
Author-Name: Anindya Banerjee 
Author-X-Name-First: Anindya 
Author-X-Name-Last: Banerjee 
Title: Industry structure and the dynamics of price adjustment 
Abstract:
  Using annual US data for gross domestic product originating by sector
 between 1947 and 1997 it is shown that a negative long-run relationship
 between inflation and the markup is present across the sectors as well as
 in the aggregate data. A preliminary explanation based on industry
 structure is explored for the relative sizes of the impact of inflation on
 the markup in the long-run for the various sectors. 
Journal: Applied Economics 
Pages: 1889-1901 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010021131 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010021131 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1889-1901




Template-Type: ReDIF-Article 1.0
Author-Name: G. R. Arabsheibani 
Author-X-Name-First: G. R. 
Author-X-Name-Last: Arabsheibani 
Author-Name: A. Marin 
Author-X-Name-First: A. 
Author-X-Name-Last: Marin 
Title: Self-selectivity bias with a continuous variable: potential pitfall in a common procedure 
Abstract:
  When the choice variable is continuous, selectivity bias can in principle
 be dealt with by a procedure first suggested by Garen (1984). However,
 work reported in this paper on the estimation of hedonic wage equations
 with compensation for dangerous jobs, where selectivity bias could arise
 through the endogenous choice of jobs according to their riskiness,
 suggests that the Garen technique may not be robust. The lack of
 robustness comes from collinearity, which is a result of the common
 situation where the empirical fit of the choice equation is moderately
 successful but not outstanding. 
Journal: Applied Economics 
Pages: 1903-1910 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010021726 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010021726 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1903-1910




Template-Type: ReDIF-Article 1.0
Author-Name: Rolf Fare 
Author-X-Name-First: Rolf 
Author-X-Name-Last: Fare 
Author-Name: Shawna Grosskopf 
Author-X-Name-First: Shawna 
Author-X-Name-Last: Grosskopf 
Author-Name: Wen-Fu Lee 
Author-X-Name-First: Wen-Fu 
Author-X-Name-Last: Lee 
Title: Productivity and technical change: the case of Taiwan 
Abstract:
  This paper analyses productivity growth in 16 of Taiwan's manufacturing
 industries during the period 1978-1992. The non-parametric Data
 Envelopment Analysis approach is used to compute Malmquist productivity
 indexes. These are decomposed into efficiency change and technical change.
 The latter is further decomposed into an output bias, an input bias and a
 magnitude component. In addition, the direction of input bias is
 identified. Empirical results indicate that the sector's TFP increased at
 a rate of 2.89% per annum, which could be ascribed to a technical progress
 (2.56%) and an efficiency improvement (0.33%). 
Journal: Applied Economics 
Pages: 1911-1925 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010018711 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010018711 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1911-1925




Template-Type: ReDIF-Article 1.0
Author-Name: John Baffes 
Author-X-Name-First: John 
Author-X-Name-Last: Baffes 
Author-Name: Mohamed Ihsan Ajwad 
Author-X-Name-First: Mohamed Ihsan 
Author-X-Name-Last: Ajwad 
Title: Identifying price linkages: a review of the literature and an application to the world market of cotton 
Abstract:
  This paper reviews the literature of price linkages and examines the
 degree to which cotton prices are linked; it also tests whether such
 linkages have improved over the last decade. It concludes that the degree
 of linkage has improved over the last decade while the main source of this
 improvement appears to be a result of short-run price transmission and to
 a lesser extent long-run co-movement. 
Journal: Applied Economics 
Pages: 1927-1941 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010023788 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010023788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1927-1941




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Tongzon 
Author-X-Name-First: Jose 
Author-X-Name-Last: Tongzon 
Title: China's membership in the World Trade Organization (WTO) and the exports of the developing economies of East Asia: a computable general equilibrium approach 
Abstract:
  There is a general perception particularly among the developing countries
 of East Asia that China's WTO membership would spell bad news for their
 exports. The ASEAN countries in particular are quite concerned about its
 likely negative impact on their export and growth potentials. In this
 light, the main objective of this paper is to empirically assess the trade
 implications of China's WTO membership for these countries. Only few
 studies, using a Computable General Equilibrium (CGE) approach, have
 addressed the issue of China's WTO membership trade implications. Further,
 these studies have not adequately addressed the issue from the perspective
 of the developing countries of East Asia, particularly the ASEAN
 countries. Using the latest version of the Global Trade Analysis Project
 (GTAP) model and based on the latest tariff reduction commitments by
 China, the results showed that, contrary to the current perception and
 previous studies, almost all of the developing countries of East Asia are
 likely to benefit from China's WTO membership overall, after allowing for
 anticipated price adjustments. Without the price adjustments, the
 Philippines and Singapore would have come out as net losers. These
 findings have confirmed the need for economic and export restructuring
 among the ASEAN countries and the importance of accelerating their
 economic integration. They have also highlighted the importance of
 promoting trade and investment cooperation between China and ASEAN
 countries. 
Journal: Applied Economics 
Pages: 1943-1959 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840110069354 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110069354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1943-1959




Template-Type: ReDIF-Article 1.0
Author-Name: George Bitros 
Author-X-Name-First: George 
Author-X-Name-Last: Bitros 
Author-Name: Epaminondas Panas 
Author-X-Name-First: Epaminondas 
Author-X-Name-Last: Panas 
Title: Is there an inflation-productivity trade-off? Some evidence from the manufacturing sector in Greece 
Abstract:
  This paper examines the effect of inflation on total factor productivity
 growth (TFP), using time-series data for every two digit Greek
 manufacturing industries. In order to do the above a translog flexible
 cost function is estimated and used to decompose TFP growth into scale
 economies, inflation and technical change. The advantage of estimating a
 very general and flexible cost function is that it allows us, for the
 first time, to examine empirically a large number of significant
 relationships between TFP growth and economies of scale, inflation and
 technical change. The main conclusion drawn from this analysis is that
 inflation reduces TFP growth in a way, which is sizeable. Furthermore,
 using standard causality test the direction of causality between inflation
 and TFP growth was tested at the manufacturing level. 
Journal: Applied Economics 
Pages: 1961-1969 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840110043730 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110043730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1961-1969




Template-Type: ReDIF-Article 1.0
Author-Name: John Hayfron 
Author-X-Name-First: John 
Author-X-Name-Last: Hayfron 
Title: Language training, language proficiency and earnings of immigrants in Norway 
Abstract:
  This paper uses a simple probit model to determine the impact of language
 training on the language proficiency of Third World immigrant men in
 Norway. It also estimates the labour market returns to Norwegian language
 proficiency. The results show that immigrants who participate in language
 training programme are more likely to acquire speaking and reading
 proficiencies in Norwegian language than those who do not. Contrary to
 expectation, language proficiency has no significant effect on immigrants'
 earnings. A probable explanation may be that immigrants need Norwegian
 language proficiency to get into jobs in the Norwegian labour market. Once
 they are in employment, their wages are not necessarily determined by
 their proficiency in Norwegian. Consistent with the assimilation
 hypothesis, earlier waves of immigrants have higher earnings than do more
 recent waves, and part of the initial earnings deficit experienced by more
 recent immigrants can be attributed to language deficiency. There was no
 evidence of sample selection bias in the earnings equation. 
Journal: Applied Economics 
Pages: 1971-1979 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010018630 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010018630 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1971-1979




Template-Type: ReDIF-Article 1.0
Author-Name: Allen Lynch 
Author-X-Name-First: Allen 
Author-X-Name-Last: Lynch 
Author-Name: David Rasmussen 
Author-X-Name-First: David 
Author-X-Name-Last: Rasmussen 
Title: Measuring the impact of crime on house prices 
Abstract:
  This paper uses data on over 2800 house sales in Jacksonville, FL to
 estimate the impact of crime on house prices. A GIS programme is used to
 develop neighbourhood characteristics that are unique to each observation.
 Crime data, available for 89 police beats are assigned to each
 observation. Weighting the seriousness of offences by the cost of crime to
 victims is used as an alternative to the customary measures of the number
 of index crimes. The cost of crime has virtually no impact on house prices
 overall, but homes are highly discounted in high crime areas. 
Journal: Applied Economics 
Pages: 1981-1989 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840110021735 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110021735 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1981-1989




Template-Type: ReDIF-Article 1.0
Author-Name: Dene Hurley 
Author-X-Name-First: Dene 
Author-X-Name-Last: Hurley 
Author-Name: Rolando Santos 
Author-X-Name-First: Rolando 
Author-X-Name-Last: Santos 
Title: Exchange rate volatility and the role of regional currency linkages: the ASEAN case 
Abstract:
  As the economies of the Association of Southeast Asian Nations (ASEAN)
 have moved towards closer economic ties and trade integration in recent
 years, the establishment of exchange rate stability is becoming an
 important regional policy concern, particularly in the wake of the Asian
 currency crisis of 1997. This paper examines the exchange rate volatility
 of the currencies of Indonesia, Malaysia, Philippines, Singapore and
 Thailand between 1974 and 1999. Using variance decomposition (VDC) methods
 and impulse response functions, which are VAR-related estimation
 techniques, the study also investigates the regional currency linkages
 which may have played a role in transmitting exchange rate fluctuations.
 The results indicate that, in spite of the adoption of the crawling peg
 exchange regime following the breakup of the Bretton Woods system, all of
 the five ASEAN currencies experienced volatility, with the Indonesian
 rupiah posting the highest volatility level. The switch to de facto
 pegging against the US dollar in the mid-1980s helped to stabilize all
 ASEAN currencies with the exception of the Malaysian ringgit. Each of the
 five currencies became more susceptible to instabilities in other ASEAN
 currencies in the post-1985 period. Consistent with the experience of the
 Asian currency crisis, the Thai baht was the main channel through which
 regional currency fluctuations were transmitted. 
Journal: Applied Economics 
Pages: 1991-1999 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010023779 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010023779 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1991-1999




Template-Type: ReDIF-Article 1.0
Author-Name: F. Javier Trivez 
Author-X-Name-First: F. Javier 
Author-X-Name-Last: Trivez 
Title: Analysis of the long-term relationships of the underlying rates of inflation in the EMU member states 
Abstract:
  The aim of this paper is to analyse whether or not there is a long-term
 stable equilibrium relationship between the underlying rates of inflation
 of the member states that have adhered to Economic and Monetary Union
 (EMU). This longterm equilibrium represents an essential requirement for
 compliance with the convergence criterion of price stability, through
 which it is possible to guarantee the maintenance of the levels of
 relative competitiveness of these member states. To that end, the concept
 of underlying inflation is defined, obtained on the basis of the
 trend-cycle component of the consumer price series, having first
 eliminated the calendar and Easter effects, as well as the outliers, from
 these original series. After applying a bivariate cointegration test to
 these components, essentially pessimistic conclusions are obtained with
 respect to compliance with the said stability criterion. 
Journal: Applied Economics 
Pages: 2001-2007 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010024291 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010024291 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:2001-2007




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Buckley 
Author-X-Name-First: Peter 
Author-X-Name-Last: Buckley 
Author-Name: Jane Frecknall Hughes 
Author-X-Name-First: Jane Frecknall 
Author-X-Name-Last: Hughes 
Title: Incentives to transfer profits: a Japanese perspective 
Abstract:
  This paper forms one of a series examining aspects of transfer pricing
 from a Japanese perspective. In earlier work the authors examined
 prevalent allegations that global companies, especially Japanese
 multinationals, operated transfer pricing policies to the deliberate
 disadvantage of host countries by artificially locating profits in
 jurisdictions where a tax advantage could be obtained. There would appear
 to be considerable evidence to suggest that obtaining a tax advantage is
 not the primary reason for adopting any particular transfer pricing
 policy. This is especially true in the case of certain Japanese companies,
 the transfer pricing policies of which result in effective transfers of
 profits back to their home base in Japan, where tax rates are relatively
 high. In earlier work it was initially suggested that this homeward
 transfer of profits was a consequence of following different costing
 principles and operating within a different business culture. This paper
 will explore further these reasons and attempt to analyse why such
 companies actively seek to undertake foreign direct investment, yet do not
 exploit transfer pricing opportunities in ways which have been open to
 them. 
Journal: Applied Economics 
Pages: 2009-2015 
Issue: 15 
Volume: 33 
Year: 2001 
X-DOI: 10.1080/00036840010024435 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010024435 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:2009-2015




Template-Type: ReDIF-Article 1.0
Author-Name: W. S. Chao 
Author-X-Name-First: W. S. 
Author-X-Name-Last: Chao 
Author-Name: J. Buongiorno 
Author-X-Name-First: J. 
Author-X-Name-Last: Buongiorno 
Title: Exports and growth: a causality analysis for the pulp and paper industries based on international panel data 
Abstract:
  This study examines the causal relations between exports and domestic
 production in the pulp and paper industries. The issue is whether exports
 are the engine of growth, or whether exports follow growth. The data were
 time-series of the 15 main exporting countries between 1961 and 1995. The
 method was Granger-causality analysis with error correction, based on
 models estimated in three ways: ordinary least squares by country, least
 squares with dummy variables (LSDV), and seemingly unrelated regression.
 Regardless of method, the strongest relation was an instantaneous (within
 a year) feedback between exports and production. The LSDV results implied
 average multipliers across countries of 1.2 to 1.4 from exports to
 production, and 0.20 to 0.25 from production to exports, in both
 industries. Experiments with monthly data on the pulp industries of Canada
 and the USA showed that temporal aggregation could affect the
 Granger-causality test results. 
Journal: Applied Economics 
Pages: 1-13 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010027531 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010027531 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:1-13




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Bo 
Author-X-Name-First: Hong 
Author-X-Name-Last: Bo 
Author-Name: Gerard Kuper 
Author-X-Name-First: Gerard 
Author-X-Name-Last: Kuper 
Author-Name: Robert Lensink 
Author-X-Name-First: Robert 
Author-X-Name-Last: Lensink 
Author-Name: Elmer Sterken 
Author-X-Name-First: Elmer 
Author-X-Name-Last: Sterken 
Title: Dutch inventory investment: are capital market imperfections relevant? 
Abstract:
  This paper analyses inventory investment using a balanced panel of 82
 Dutch firms. We start from the Lovell (1961) inventory model and amend it
 with cash flow to introduce capital market imperfections. The empirical
 evidence provides support for the relevance of capital market
 imperfections in explaining Dutch inventory investment. The results
 suggest that cash flow is a relevant variable omitted from the original
 Lovell model. The study provides a better understanding of inventory
 behaviour in general. 
Journal: Applied Economics 
Pages: 15-22 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010025128 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025128 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:15-22




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bohm 
Author-X-Name-First: B. 
Author-X-Name-Last: Bohm 
Author-Name: A. Gleiss 
Author-X-Name-First: A. 
Author-X-Name-Last: Gleiss 
Author-Name: M. Wagner 
Author-X-Name-First: M. 
Author-X-Name-Last: Wagner 
Author-Name: D. Ziegler 
Author-X-Name-First: D. 
Author-X-Name-Last: Ziegler 
Title: Disaggregated capital stock estimation for Austria - methods, concepts and results 
Abstract:
  Based on a survey of the appropriate literature and on separate
 investigations concerning distributions of asset lives and depreciation
 patterns of vehicles, gross and net capital stocks as well as depreciation
 at constant prices and at replacement cost have been estimated for Austria
 using the Perpetual Inventory Method. The problem of the limited length of
 investment time series has tried to be overcome by assigning a fixed age
 to each initial stock. The level of disaggregation for the calculations is
 ONACE 2-digit2 and this has been further broken down to the categories
 buildings, machinery and equipment, and vehicles. All available a priori
 knowledge and data have been incorporated. All estimates of capital stocks
 and depreciation based on industry level investment data are subject to
 uncertainty due to the lack of information at the asset type level. In
 order to give a quantitative assessment of this uncertainty, for the
 public as well as for the private enterprise sector, several scenarios
 have been calculated. In addition a thorough sensitivity analysis with
 respect to all relevant parameters including the age assigned to the
 initial stock has been performed. 
Journal: Applied Economics 
Pages: 23-37 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010027559 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010027559 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:23-37




Template-Type: ReDIF-Article 1.0
Author-Name: Owen Phillips 
Author-X-Name-First: Owen 
Author-X-Name-Last: Phillips 
Author-Name: Lori Phillips 
Author-X-Name-First: Lori 
Author-X-Name-Last: Phillips 
Title: The market for academic journals 
Abstract:
  Library journal subscriptions are treated as a public good. A monopoly
 publisher sells subscriptions to both libraries and individuals. For
 individuals, the journal is a private good. Profit maximization can lead
 to high institutional prices and few individual subscribers. This outcome
 is reinforced by increases in publishing costs. Library serial prices fall
 if patrons pay access costs and/or there is congestion. Data are presented
 to support these conclusions. Library prices are two to ten times higher
 than private prices; there are as few as two to four individual
 subscribers in an academic journal market. Library subscription prices are
 directly related to the number of consumers who use the library serial. 
Journal: Applied Economics 
Pages: 39-48 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010029476 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010029476 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:39-48




Template-Type: ReDIF-Article 1.0
Author-Name: Nadeem Burney 
Author-X-Name-First: Nadeem 
Author-X-Name-Last: Burney 
Title: Wagner's hypothesis: evidence from Kuwait using cointegration tests 
Abstract:
  This paper investigates the relationship between public expenditure and a
 number of socioeconomic variables, including the level of income, in
 Kuwait. A general form of the public expenditure function is formulated
 and recent developments in time series econometrics, including unit roots
 and cointegration tests, and an error-correction model are used. Given the
 characteristics of the economy, alternative measures for each variables
 are used. The analysis in the paper is based on time-series data covering
 the period from 1969/70 to 1994/95. In general, the findings lend little
 support to the existence of long-run equilibrium relationship between
 public expenditure and the socioeconomic variables, and the evidence does
 not lend support to the validity of Wagner's law in Kuwait. 
Journal: Applied Economics 
Pages: 49-57 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010027540 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010027540 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:49-57




Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton 
Author-X-Name-First: James 
Author-X-Name-Last: Thornton 
Title: Estimating a health production function for the US: some new evidence 
Abstract:
  This study reports some new evidence on the impact of medical care,
 socioeconomic, lifestyle and environmental factors on the health status of
 the population of the USA. The results show that additional medical care
 utilization is relatively ineffective in lowering mortality and increasing
 life expectancy. The most important factors that influence death rates are
 related to socioeconomic status and lifestyle. The results suggest that
 health care policy which focuses primarily on the provision of medical
 care services and ignores larger economic and social considerations may do
 little to benefit the nation's health. 
Journal: Applied Economics 
Pages: 59-62 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010025650 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025650 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:59-62




Template-Type: ReDIF-Article 1.0
Author-Name: Jang Jin 
Author-X-Name-First: Jang 
Author-X-Name-Last: Jin 
Title: Exports and growth: is the export-led growth hypothesis valid for provincial economies? 
Abstract:
  This paper re-examines the export-led growth hypothesis using provincial
 data. Unlike other studies that concentrate on country-level data, this
 study investigates the validity of the hypothesis for four largest
 provinces in Korea: Seoul, Kyunggee, Kyungnam, and Pusan. The causal
 implication of the export-led growth hypothesis is generally supported for
 all provinces in the sample. The framework of analysis is two- and
 four-variable autoregressive models that include provincial exports,
 provincial output, terms of trade, and national output shocks. Granger
 causal orderings from exports to output growth are generally supported in
 bivariate causal models. In multivariate models, variance decompositions
 and impulse response functions further indicate that export growth has a
 significant impact on output growth for all provinces although a feedback
 effect from output to export growth appears in Seoul and the Kyungnam
 province. 
Journal: Applied Economics 
Pages: 63-76 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010025632 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025632 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:63-76




Template-Type: ReDIF-Article 1.0
Author-Name: Nakil Sung 
Author-X-Name-First: Nakil 
Author-X-Name-Last: Sung 
Title: Measuring embodied technical change in the US local telephone industry 
Abstract:
  This study attempts to measure the rate of embodied technical change by
 using a short-run variable cost function that contains arguments for
 labour and capital quality. In this short-run variable cost model, the
 expansion of the amount of physical capital increases variable costs due
 to more maintenance outlays, and then it leads to improvements in capital
 quality. When a measure of competition is included as a proxy for
 organizational efficiency, improvements in labour and capital quality
 explain more than two-thirds of productivity growth. The degree of returns
 to scale and the shadow cost of capital input in the embodiment cost model
 are presented as well. The study is based on pooled time-series and
 cross-section data of eight US local exchange carriers. 
Journal: Applied Economics 
Pages: 77-85 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010025100 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025100 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:77-85




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Law 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Law 
Title: The problem of market size for Canadian cable television regulation 
Abstract:
  The policy of the Canadian radio television and telecommunications
 commission of awarding an exclusive right to provide cable television
 (CATV) service within a given licensed service area (LSA) rests partly on
 the presumption that CATV costs reflect economies of scale that are large
 relative to market size. Cost estimates from crosssections of CATV
 operations from 1985-1991 show increasing returns to scale and suggest
 that many LSAs were too small to capture these economies. The results also
 indicate that economies of scale for basic service declined over the 1980s
 and that the 'natural monopoly' characteristics of CATV may be eroded by
 further technological and regulatory changes. 
Journal: Applied Economics 
Pages: 87-99 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010025092 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025092 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:87-99




Template-Type: ReDIF-Article 1.0
Author-Name: D. M. Nachane 
Author-X-Name-First: D. M. 
Author-X-Name-Last: Nachane 
Author-Name: R. Lakshmi 
Author-X-Name-First: R. 
Author-X-Name-Last: Lakshmi 
Title: Dynamics of inflation in India - a P-Star approach 
Abstract:
  P-Star models have become increasingly popular in recent years in
 developed countries. However data constraints have limited their
 applicability to the LDCs. In this paper, such a model is attempted for
 India using both annual and quarterly data for the period 1955-1995. It is
 found that velocity in India is trend stationary and using cointegration
 techniques it is then possible to develop a model to gauge inflationary
 pressures in the economy. The model is well calibrated to data, and in
 out-of-sample forecasts, it significantly outperforms a seasonal ARMA
 benchmark model. The velocity gap version of the model is particularly
 successful. 
Journal: Applied Economics 
Pages: 101-110 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010020385 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010020385 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:101-110




Template-Type: ReDIF-Article 1.0
Author-Name: Abdullah Al-Obaidan 
Author-X-Name-First: Abdullah 
Author-X-Name-Last: Al-Obaidan 
Title: Efficiency effect of privatization in the developing countries 
Abstract:
  Privatization gained considerable momentum in the developing world in the
 1980s. The motives were many, but the hope for higher economic efficiency
 underlined the expectations of the implementing governments and agencies
 in the developing countries. While the merits of a market-based economic
 system are well established under certain theoretical conditions, far less
 is known of its empirical relevance in the developing world. Yet, to the
 best of the author's knowledge, no empirical study has examined the
 macro-efficiency effect of privatization in the developing countries.
 Studies concerned with this issue often limit themselves to the impact of
 privatization at the firm level for a small number of companies and
 countries. Thus, the current study is an attempt to provide a systematic
 quantitative measure of the magnitude of the macroeconomic effect of
 privatization in 45 developing countries. Using the concept of frontier
 production function, efficiency differences between developing countries
 with differing degrees of private sector contribution in the economy are
 estimated. The empirical findings suggest, ceteris paribus, that
 developing countries can increase the utility of their national resources
 by approximately 45% simply by converting to market-based economies. 
Journal: Applied Economics 
Pages: 111-117 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010007948 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007948 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:111-117




Template-Type: ReDIF-Article 1.0
Author-Name: M. T. Alguacil 
Author-X-Name-First: M. T. 
Author-X-Name-Last: Alguacil 
Author-Name: V. Orts 
Author-X-Name-First: V. 
Author-X-Name-Last: Orts 
Title: A multivariate cointegrated model testing for temporal causality between exports and outward foreign investment: the Spanish case 
Abstract:
  Historically, outward foreign direct investment has been contemplated as
 an alternative way of firms' internationalization. In this line, a
 relational substitution between exports and foreign direct investment
 would be expected. However, this seems to contrast with recent
 developments in the 'new trade theory' which show that the volume of trade
 and the emergence of multinational firms may be positively related one to
 the other. This paper investigates if some empirical evidence exists
 either supporting a substitution or a complementary relationship between
 both forms of internationalization. With this aim, an aggregate time
 series approach was adopted using quarterly aggregate data (seasonal
 adjusted) from the Spanish economy covering the period 1970.I-1992.III. A
 vector autoregressive model was employed for both multivariate
 cointegration analysis and Granger temporal causality testing. The
 strength and direction of causal relationships are shown through the
 dynamic variance decomposition and the impulse response technique. Once
 controlling for relative market size and prices, the results provide
 evidence of a positive long-term Granger causality going from foreign
 direct investment to exports, although not in the opposite direction. 
Journal: Applied Economics 
Pages: 119-132 
Issue: 1 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110046818 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046818 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:119-132




Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Linden 
Author-X-Name-First: Mikael 
Author-X-Name-Last: Linden 
Title: Trend model testing of growth convergence in 15 OECD countries, 1946-1997 
Abstract:
  A framework based on a linear deterministic trend function is introduced
 in order to model growth convergence. The approach is a practical solution
 to the nonlinearity and nonstationarity found in the convergence of
 output-per-capita gaps between the USA and 14 OECD countries in 1946-1997.
 Convergence is found to be a typical feature of European OECD countries
 and Japan, but for some major countries it altered since the beginning of
 1980. Some evidence of divergence exists too. Valid statistical inference
 on trend-growth estimates is based on sample-size standardized t - and
 Wald-test statistics, since the model residuals are close to I(1).
 Small-sample test values are derived using bootstrap methods. 
Journal: Applied Economics 
Pages: 133-142 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010025119 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025119 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:133-142




Template-Type: ReDIF-Article 1.0
Author-Name: Madhu Mohanty 
Author-X-Name-First: Madhu 
Author-X-Name-Last: Mohanty 
Title: A bivariate probit approach to the determination of employment: a study of teen employment differentials in Los Angeles County 
Abstract:
  Following a bivariate probit approach and using the 1990 Public Use
 Microdata Samples (PUMS) for Los Angeles County, this study shows that the
 employment of teenage workers depends on both the worker's participation
 decision as well as the employer's hiring decision. Omission of the role
 of participation decision from the estimation of employment probability
 yields misleading evidence of hiring discrimination against Blacks. This
 evidence, however, disappears when the participation and hiring equations
 are estimated jointly in a bivariate framework. The study finds no
 evidence of discrimination against females and Latinos. In addition, the
 study shows that family, household and neighbourhood characteristics play
 significant roles in the determination of teen employment. 
Journal: Applied Economics 
Pages: 143-156 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010028585 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010028585 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:143-156




Template-Type: ReDIF-Article 1.0
Author-Name: Eric Chiang 
Author-X-Name-First: Eric 
Author-X-Name-Last: Chiang 
Author-Name: Djeto Assane 
Author-X-Name-First: Djeto 
Author-X-Name-Last: Assane 
Title: Software copyright infringement among college students 
Abstract:
  In recent years, the issue of infringement in the software industry has
 gained international attention as the demand for software continues to
 grow. The growing presence of unauthorized reproduction of copyrighted
 products inhibits full potential growth and discourages creative activity.
 This study analyses the extent of software copyright infringement among
 college students and attitudes of these students with regard to risk of
 apprehension and conviction. This study finds a significantly higher
 likelihood of infringement for computer majors and male students, and a
 decrease in the likelihood of infringement for older students. This study
 also uncovers differences in attitudes toward risk of apprehension and
 conviction between majors in scientific fields and those in business and
 economics. Whereas the first group of majors appears to exhibit risky
 behaviour, the latter tends to be more risk averse. 
Journal: Applied Economics 
Pages: 157-166 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/000368400110034253 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400110034253 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:157-166




Template-Type: ReDIF-Article 1.0
Author-Name: R. Todd Jewell 
Author-X-Name-First: R. Todd 
Author-X-Name-Last: Jewell 
Author-Name: Robert Brown 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brown 
Author-Name: Scott Miles 
Author-X-Name-First: Scott 
Author-X-Name-Last: Miles 
Title: Measuring discrimination in major league baseball: evidence from the baseball hall of fame 
Abstract:
  This paper examines the effects of race on player induction into the
 National Baseball Hall of Fame, concentrating on a player's first ballot.
 Past research has found some evidence of discrimination in voting against
 retired Major League Baseball players who were born in a Latin American
 country and against American-born black players. This study finds that
 estimates of discrimination in Hall of Fame voting are sensitive to
 specification. However, we do find limited evidence that retired players
 who are both black and Latin face some voting discrimination. Furthermore,
 the results show that race does not seem to affect whether a player
 actually receives enough votes to get into the Hall of Fame on his first
 ballot. Instead, it appears that any discrimination in voting is
 concentrated among those players who would not have received enough votes
 to enter the Hall of Fame based solely on their career statistics. 
Journal: Applied Economics 
Pages: 167-177 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010034244 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010034244 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:167-177




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Ayala 
Author-X-Name-First: Luis 
Author-X-Name-Last: Ayala 
Author-Name: Rosa Martinez 
Author-X-Name-First: Rosa 
Author-X-Name-Last: Martinez 
Author-Name: Jesus Ruiz-Huerta 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Ruiz-Huerta 
Title: Institutional determinants of the unemployment-earnings inequality trade-off 
Abstract:
  Most of the research efforts in recent years to explain international
 differences in unemployment and earnings inequality have placed the
 emphasis on the institutional components of the labour markets. The
 purpose of this paper is to evaluate which are the real effects of these
 characteristics on both phenomena using an ample set of data for different
 OECD countries. A Cluster analysis permits consideration about relatively
 heterogeneous models. The results of the econometric exercise show also
 that institutional factors have a greater impact on earnings inequality
 than on unemployment. 
Journal: Applied Economics 
Pages: 179-195 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010031464 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010031464 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:179-195




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Robles 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Robles 
Title: Revisiting the demand for money model: money and loans in selected manufacturing industries 
Abstract:
  Using a dynamic infinite horizon optimizing model, it is shown that the
 empirical demand for money equation employed by a generation of applied
 monetary researchers is a reduced form model of the dynamic Euler
 equations for real money balances. The Euler equations derived in this
 paper focus on the finance capital for the firm and consist of real money
 balances (M1) and real business loans (F1) for selected manufacturing
 industries. By employing explicit structural dynamic specification and
 sectoral disaggregation, the question of how firms close the gap between
 desired real money balances and actual real money balances is examined.
 Model consistent 'desired' levels of money balances and business loans are
 found to depend not only upon the usual transactions variable and interest
 rate but also upon relative prices and a technology index. Moreover, the
 speed in closing the gap between desired and actual money balances (loan
 balances) is estimated using annual two-digit Standard Industrial Code
 data for durable and non-durable industries. Non-durable industries tend
 to close the gap faster than durable industries by as much as 25% in a
 given year. 
Journal: Applied Economics 
Pages: 197-205 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010031473 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010031473 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:197-205




Template-Type: ReDIF-Article 1.0
Author-Name: Camilla Jensen 
Author-X-Name-First: Camilla 
Author-X-Name-Last: Jensen 
Title: Foreign direct investment, industrial restructuring and the upgrading of Polish exports 
Abstract:
  This paper poses a central question in relation to the
 economic-structural effect of Foreign Direct Investment (FDI) with Polish
 manufacturing as an empirical case: how FDI coincides with the technology
 intensity of Polish exports. A short review of the available literature
 discusses critically the possibility of establishing one-sided
 cause-effect relationships between trade and FDI. Subsequently the
 empirical analysis investigates what role incoming FDI appears to have
 played in relation to Polish export specialization over the period
 1989-1996. Results indicate that FDI has affected positively the
 technology intensity of the Polish export base. 
Journal: Applied Economics 
Pages: 207-217 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010025641 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025641 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:207-217




Template-Type: ReDIF-Article 1.0
Author-Name: Pat McGregor 
Author-X-Name-First: Pat 
Author-X-Name-Last: McGregor 
Author-Name: Roisin Thanki 
Author-X-Name-First: Roisin 
Author-X-Name-Last: Thanki 
Author-Name: Patricia McKee 
Author-X-Name-First: Patricia 
Author-X-Name-Last: McKee 
Title: Home and away: graduate experience from a regional perspective 
Abstract:
  The recent establishment of regional assemblies adds a further policy
 dimension to higher education. This paper consists of an empirical
 analysis of the choices made by the 1991 Northern Ireland cohort of
 entrants to higher education to stay in or leave Northern Ireland for
 universities and subsequently then for employment. The data indicate that
 the probability to leave was firmly linked to A level scores, though this
 interacted with religion and social class. The choice of labour market for
 most students reflected the location of university. Those who returned to
 Northern Ireland after graduation were less able and earned less on
 average than those who remained. Employment in the locality of the
 university improves earnings, possibly due to the information this
 generates for both parties. 
Journal: Applied Economics 
Pages: 219-230 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840011028594 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840011028594 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:219-230




Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Sanso 
Author-X-Name-First: Marcos 
Author-X-Name-Last: Sanso 
Author-Name: Antonio Montanes 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Montanes 
Title: Cointegration, error correction mechanism and trade liberalization: the case of the Spanish imports of manufactures 
Abstract:
  This paper discusses the way that the effects of a tariff cut process on
 trade flows should be analysed when the variables are nonstationary. Using
 cointegration techniques and the error correction mechanism, it is
 possible to establish the different types of structural break that might
 appear in the behaviour of a trade flow as a consequence of the trade
 liberalization process, both in the short and in the long-run. In order to
 illustrate the results, the evolution of the Spanish imports of
 manufacturers after Spain's entry into the European Community is analysed. 
Journal: Applied Economics 
Pages: 231-240 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110036314 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036314 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:231-240




Template-Type: ReDIF-Article 1.0
Author-Name: David Morelli 
Author-X-Name-First: David 
Author-X-Name-Last: Morelli 
Title: The robustness of tests of structural change in equity returns using factor analysis 
Abstract:
  The objective of this paper is to perform various tests of structural
 change within the context of factor analysis and determine how robust the
 results of such tests are to; the security selection criteria in
 constructing portfolios, portfolio size, and methods of factor extraction.
 The question of a possible structural change is addressed by examining the
 Stock Market Crash of October 1987. Monthly returns on 257 securities
 listed on the London Stock Exchange covering the period January 1976 to
 December 1995 are used. The data period incorporates the Stock Market
 Crash of October 1987. 
Journal: Applied Economics 
Pages: 241-251 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110036279 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036279 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:241-251




Template-Type: ReDIF-Article 1.0
Author-Name: Jimmy Ran 
Author-X-Name-First: Jimmy 
Author-X-Name-Last: Ran 
Title: Volatility of fundamental variables under different exchange rate system--a simple test for Hong Kong 
Abstract:
  This paper presents a comparison in the changes of Hong Kong
 macroeconomic fundamental variables before and after its currency was
 'pegged' to the US dollar in October 1983. Using a simple method from
 Flood and Rose (1995) and Baxter and Stockman (1989), this paper compares
 the volatilities of all aggregate variables used by those investigators in
 so far as these data are available for Hong Kong. The results show,
 contrary to the dominating empirical literature for the G-7 countries,
 that the volatilities of more than half of the nominal and real variables
 under the float are significantly higher than those under the link. 
Journal: Applied Economics 
Pages: 253-258 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110036288 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036288 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:253-258




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Garcia 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Garcia 
Author-Name: Carmen Marcuello 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Marcuello 
Title: Family model of contributions to non-profit organizations and labour supply 
Abstract:
  In this article a model is presented in which the family decides the
 labour supply of both spouses and their time donations to non-profit
 organizations. For the estimation, Spanish data was used which showed that
 family size and pre-school children influence decisions made about time
 distribution of husband and wife. Women with fewer family responsibilities
 work longer hours and donate more time, whilst the effect on men is the
 contrary. Also, monetary donations by the family are directly related to
 time donations by the spouses. 
Journal: Applied Economics 
Pages: 259-265 
Issue: 2 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110042164 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110042164 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:259-265




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Anari 
Author-X-Name-First: Ali 
Author-X-Name-Last: Anari 
Author-Name: James Kolari 
Author-X-Name-First: James 
Author-X-Name-Last: Kolari 
Author-Name: Seppo Pynnonen 
Author-X-Name-First: Seppo 
Author-X-Name-Last: Pynnonen 
Author-Name: Antti Suvanto 
Author-X-Name-First: Antti 
Author-X-Name-Last: Suvanto 
Title: Further evidence on the credit view: the case of Finland 
Abstract:
  The present paper provides further empirical evidence on the credit view
 (i.e., bank credit availability has a positive impact on macroeconomic
 activity) by investigating the case of Finland. The Finnish economy
 suffered a severe recession in the early 1990s that was marked by
 widespread banking crisis and extensive government intervention. Using
 monthly data for the 1980-1996 period, unrestricted and restricted vector
 autoregression (VAR) models with GDP, money supply, consumer prices, bank
 credit, and exports were estimated. It is found that, while money supply
 had the largest effect on economic output, bank credit exhibited a fairly
 strong effect on output that exceeded price effects for the most part.
 Exports had little impact on fluctuations in GDP but did help to explain
 industrial output changes over time. Based on these results, it is
 concluded that there is empirical support for the credit view in Finland.
 By implication, government intervention in Finland to restore safety and
 soundness during the banking crisis likely limited further damage to the
 macroeconomy associated with disruption of credit intermediation services. 
Journal: Applied Economics 
Pages: 267-278 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110047592 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110047592 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:267-278




Template-Type: ReDIF-Article 1.0
Author-Name: Ayumi Kikuchi 
Author-X-Name-First: Ayumi 
Author-X-Name-Last: Kikuchi 
Author-Name: Michael Sumner 
Author-X-Name-First: Michael 
Author-X-Name-Last: Sumner 
Title: Exchange-rate pass-through in Japanese export pricing 
Abstract:
  Two recent aggregative studies claim to demonstrate that Japanese
 exporters absorb a proportion of exchange-rate changes in their profit
 margins; but the estimates of this proportion are dramatically different.
 This study accounts for the discrepancy, and shows that neither estimate
 is credible. These results identify incomplete pass-through, conditional
 on costs, as a transitory consequence of export pricing in currencies
 other than yen. The only long-run effect of the exchange rate on
 yen-dominated export prices operates through imported materials prices. 
Journal: Applied Economics 
Pages: 279-284 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110048456 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110048456 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:279-284




Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Moro 
Author-X-Name-First: Daniele 
Author-X-Name-Last: Moro 
Author-Name: Paolo Sckokai 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Sckokai 
Title: Functional separability within a quadratic inverse demand system 
Abstract:
  In this paper, a quadratic inverse (almost ideal) demand system (IQUAIDS)
 is derived, that generalizes the inverse (almost ideal) demand system
 (IAIDS). Starting from a flexible parameterization of the distance
 function, this model allows a more flexible specification by overcoming
 the potential restrictiveness of linear scale curves. However, at a point
 of normalization, the IQUAIDS boils down to the IAIDS, thus the additional
 flexibility pertains only to the specification of scale elasticities away
 from the point of approximation. Previous work on functional separability
 is extended to the case of inverse demands, and necessary and sufficient
 conditions for weak separability of the direct and indirect utility
 function derived, in terms of the Antonelli elasticities of
 complementarity and of the scale elasticities. Their proper parametric
 representation within the inverse specification is also derived. An
 empirical application to fish demand in Italy is provided, mainly for
 illustrative purposes. 
Journal: Applied Economics 
Pages: 285-293 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110042173 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110042173 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:285-293




Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Fachin 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Fachin 
Author-Name: Dennis Shea 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Shea 
Author-Name: Maurizio Vichi 
Author-X-Name-First: Maurizio 
Author-X-Name-Last: Vichi 
Title: Exploring 3D datasets: a factorial matrices analysis of the US industry in the 1980s 
Abstract:
  In this paper a Factorial Matrices technique suitable for exploratory
 analysis of multivariate, disaggregated time series is presented and
 applied to a data set covering 19 US manufacturing industries over the
 years 1979 to 1990. The empirical analysis confirms that the technique is
 a powerful tool, allowing otherwise difficult extraction of stylized facts
 from multidimensional datasets. In this case: (i) there are no signs of
 deindustrialization induced by growing import penetration, and, (ii),
 employment decline has generally not been associated to substitution of
 capital to labour. 
Journal: Applied Economics 
Pages: 295-304 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110043749 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110043749 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:295-304




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Cowling 
Author-X-Name-First: Marc 
Author-X-Name-Last: Cowling 
Title: The extent and determination of performance related pay systems in Scandinavian countries 
Abstract:
  The incidence of performance related pay (PRP) varies substantially
 across countries. Using individual worker level data, it is the intention
 of this paper to examine initially the extent to which institutional
 factors across Denmark, Sweden and Finland affect the coverage of
 Performance Related Pay. It then identifies the types of workers and firms
 that choose this form of payment system within each country. The initial
 findings suggest that institutional factors within countries play a role
 in determining the extent to which the adoption of PRP systems varies
 across countries, although this is far clearer for Finland than between
 Denmark and Sweden for example. The results also show that there are
 significant differences across Scandinavia in terms of the workers who
 choose PRP systems and the firms who adopt them. Strong support is found
 for the previously identified and positive relationship between firm size
 and use of PRP. 
Journal: Applied Economics 
Pages: 305-316 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/0003684011-36297 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684011-36297 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:305-316




Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Morley 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Morley 
Title: Output, consumption and the stock market: implications for European convergence 
Abstract:
  This paper investigates the nature of the relationship between output and
 stock prices, and consumption and stock prices, with respect to the
 different financial structures that exist primarily in the European Union
 (EU). Evidence is found of a long-run relationship for both relationships,
 with the exception of Germany and to an extent France, which is argued is
 due to their bank dominated financial systems. Kalman Filter estimates
 reveal that both relationships have increased in strength, although little
 evidence is found of any convergence in the strength of the relationship
 across the EU. 
Journal: Applied Economics 
Pages: 317-323 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110049301 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110049301 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:317-323




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Ferdous Alam 
Author-X-Name-First: Mohammad Ferdous 
Author-X-Name-Last: Alam 
Author-Name: Ishak Haji Omar 
Author-X-Name-First: Ishak Haji 
Author-X-Name-Last: Omar 
Author-Name: Dale Squires 
Author-X-Name-First: Dale 
Author-X-Name-Last: Squires 
Title: Sustainable fisheries development in the tropics: trawlers and licence limitation in Malaysia 
Abstract:
  Sustainable fisheries development requires sound fisheries management.
 Area licence limitation programmes may form the cornerstone for most
 tropical multispecies fisheries management programmes. An empirical
 analysis of Peninsular Malaysian fishing trawlers is used to design an
 area licence limitation programme that conforms to the multiproduct
 production technology, and cost and revenue structures to best accommodate
 condtions of asymmetric information between the regulator and fishing
 vessels. 
Journal: Applied Economics 
Pages: 325-337 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110036305 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036305 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:325-337




Template-Type: ReDIF-Article 1.0
Author-Name: Angelina Lazaro 
Author-X-Name-First: Angelina 
Author-X-Name-Last: Lazaro 
Author-Name: Ramon Barberan 
Author-X-Name-First: Ramon 
Author-X-Name-Last: Barberan 
Author-Name: Encarnacion Rubio 
Author-X-Name-First: Encarnacion 
Author-X-Name-Last: Rubio 
Title: The economic evaluation of health programmes: why discount health consequences more than monetary consequences? 
Abstract:
  There is currently general agreement amongst economists that the discount
 rate to compute the present value of benefits and costs in the economic
 evaluation of public policies is defined according to the social time
 preference approach. However, whether this rate has to be used for the
 discount of non-monetary health consequences is a question for which there
 is no satisfactory reply. In this paper, it is argued that such a reply
 rests on the estimation of the relationship between the individual time
 preference for health and money in the contexts of private and social
 choice. In support of this argument an empirical analysis has been carried
 out in which the individuals making-up a representative sample of the
 population of Zaragoza (Spain) have been faced with a series of
 hypothetical inter-temporal choices. Their replies have implicitly
 revealed their temporal preference rates and have led to the conclusion
 that health consequences are discounted at a higher rate than monetary
 consequences. This would appear to be contrary to the standard practice
 applied in the economic valuation of health programmes. 
Journal: Applied Economics 
Pages: 339-350 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110043758 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110043758 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:339-350




Template-Type: ReDIF-Article 1.0
Author-Name: Amor Diez-Ticio 
Author-X-Name-First: Amor 
Author-X-Name-Last: Diez-Ticio 
Author-Name: Maria-Jesus Mancebon 
Author-X-Name-First: Maria-Jesus 
Author-X-Name-Last: Mancebon 
Title: The efficiency of the Spanish police service: an application of the multiactivity DEA model 
Abstract:
  In this paper the efficiency of the Spanish Police Service is analysed
 using Data Envelopment Analysis (DEA). The analysis concentrates on the
 police activities related to the solving of crimes. The theoretical and
 empirical study of the police production function under this dimension
 leads to a consideration of the units analysed as centres which carry out
 their activities with nonidentical technologies and using common inputs.
 Accordingly, the multiactivity DEA model developed by Mar Molinero
 (Journal of the Operational Research Society, 47, 1996, 1273-9) is
 applied, one that is designed to estimate the efficiency of institutions
 which face several production functions using shared inputs. The results
 demonstrate the important differences that exist between the centres with
 respect to the distinct activities analysed, both as regards the
 efficiency rates and the factors which determine them. 
Journal: Applied Economics 
Pages: 351-362 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110043767 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110043767 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:351-362




Template-Type: ReDIF-Article 1.0
Author-Name: Anne Gilbert 
Author-X-Name-First: Anne 
Author-X-Name-Last: Gilbert 
Author-Name: Alan King 
Author-X-Name-First: Alan 
Author-X-Name-Last: King 
Author-Name: Christina Cregan 
Author-X-Name-First: Christina 
Author-X-Name-Last: Cregan 
Title: Gender and wages: a cohort study of primary school teachers 
Abstract:
  This study uses cohort data to analyse the observed (or gross) salary
 differential between male and female primary school teachers. The teachers
 in this sample, who are all employed in state-sector schools in the same
 geographic locality, are observed 20 years after first entering the
 teaching profession. The main finding is that two-fifths of the
 differential cannot be explained by gender differences in the levels of
 experience, qualification and mobility within our sample and so is
 attributed to labour market discrimination and other unobservable gender
 influences. 
Journal: Applied Economics 
Pages: 363-375 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110044144 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:363-375




Template-Type: ReDIF-Article 1.0
Author-Name: John Hudson 
Author-X-Name-First: John 
Author-X-Name-Last: Hudson 
Author-Name: Philip Jones 
Author-X-Name-First: Philip 
Author-X-Name-Last: Jones 
Title: In search of the good samaritan: estimating the impact of 'altruism' on voters' preferences 
Abstract:
  This paper continues the development of a theoretical foundation for
 measuring 'altruistic' behaviour with respect to tax versus expenditure
 preferences in three specific spheres: health, education and welfare
 payments. Particular emphasis is placed on analysing the choice theoretic
 calculus that underlies individual preferences. Using this theoretical
 foundation, econometric techniques allow progress to be made in measuring
 the characteristics of the underlying utility function. The empirical work
 relates to the UK and confirms that both self-interest and public interest
 (with a slight emphasis on the latter) determine overall preferences. The
 implications of this for the public choice school are then examined. 
Journal: Applied Economics 
Pages: 377-383 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110048447 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110048447 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:377-383




Template-Type: ReDIF-Article 1.0
Author-Name: Don Webber 
Author-X-Name-First: Don 
Author-X-Name-Last: Webber 
Title: Labour's reward across regions of the EU: a distributional dynamic approach 
Abstract:
  A large number of empirical studies have tested for the presence of
 convergence for a variety of economic variables. This paper examines the
 evolution of labour's reward across regions of the EU to identify whether
 factor price convergence has occurred. Density diagrams are used to
 illustrate static distributions while transitional matrices are employed
 to identify movements of the distribution over time. The results presented
 suggest that the evolutionary paths of average regional pay are fairly
 stable with stratification and persistence identified as important
 characteristics. There was uninterrupted convergence of average regional
 pay between 1980-1992. However, between 1992-1994 this process reversed. 
Journal: Applied Economics 
Pages: 385-394 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110050633 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110050633 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:385-394




Template-Type: ReDIF-Article 1.0
Author-Name: John Sutherland 
Author-X-Name-First: John 
Author-X-Name-Last: Sutherland 
Title: Wages in and voluntary quits from an establishment internal labour market 
Abstract:
  This paper analyses wage rates in and quit rates from two production
 departments in an establishment based structured internal labour market in
 which labour allocation between grades and the wage rate of these grades
 are managerially determined. First, it is assumed that management makes
 effective use of the 'private' information about individual employees
 collected through time, proxied by tenure, to allocate them to the most
 appropriate tasks. However, in an OLS regression the elasticity of the
 wage rate with respect to tenure, although statistically significant, is
 not economically important. Further, it is assumed that this labour
 allocation process together with the wage structure will facilitate labour
 retention. However, in a probit model analysing the quit probability, the
 probability of quitting increases with the wage rate. Both results are
 compatible with an internal labour market labour allocation process and
 wage structure that is not competitive with wage rates prevailing in the
 external labour market. 
Journal: Applied Economics 
Pages: 395-400 
Issue: 3 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110053234 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110053234 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:395-400




Template-Type: ReDIF-Article 1.0
Author-Name: Meng-Wen Tsou 
Author-X-Name-First: Meng-Wen 
Author-X-Name-Last: Tsou 
Author-Name: Jin-Tan Liu 
Author-X-Name-First: Jin-Tan 
Author-X-Name-Last: Liu 
Author-Name: James Hammitt 
Author-X-Name-First: James 
Author-X-Name-Last: Hammitt 
Title: Worker turnover and job reallocation in Taiwanese manufacturing 
Abstract:
  The paper examines time-series patterns of job and worker flows in a
 newly industrializing economy (NIE). Using plant-level data from the
 Taiwan manufacturing sector, the cyclical behaviour of job reallocation
 and its relation with worker turnover is analysed. It is found that job
 reallocation and labour turnover are procyclical, at both the aggregate
 and (two-digit) industry levels. The share of worker turnover caused by
 gross job reallocation is 17%, suggesting the majority of observed worker
 turnover reflects rotations of positions that are neither created or
 destroyed. There is substantial heterogeneity in plant-specific job and
 worker turnover patterns. Job creation and job destruction rates are
 higher among small plants and private-sector plants. The private plants
 are more dynamic than public plants in terms of worker turnover.
 Controlling for year and industry effects, it is found that job creation
 and worker turnover are both higher in export-oriented industries. 
Journal: Applied Economics 
Pages: 401-411 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110046016 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046016 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:401-411




Template-Type: ReDIF-Article 1.0
Author-Name: Dana Mukamel 
Author-X-Name-First: Dana 
Author-X-Name-Last: Mukamel 
Author-Name: William Spector 
Author-X-Name-First: William 
Author-X-Name-Last: Spector 
Title: The competitive nature of the nursing home industry: price mark ups and demand elasticities 
Abstract:
  Nursing home markets are likely to deviate from a competitive structure
 because of limitations on entry imposed by Certificate of Need (CON)
 regulations and the potential for product differentiation along such
 attributes as location, religious affiliation and quality. This paper
 investigates the structure of nursing home markets in New York State by
 calculating price mark ups and residual private pay demand elasticities.
 It shows that the residual demand elasticity is bound by estimates based
 on price mark ups above marginal costs and above Medicaid rates. This
 approach allows estimation of demand elasticities in all markets, whether
 or not CON regulations constrain bed supply. Mean price elasticities (in
 absolute value) calculated for nursing homes in New York State in 1991
 ranged from 3.46 to 3.85. 
Journal: Applied Economics 
Pages: 413-420 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110044199 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044199 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:413-420




Template-Type: ReDIF-Article 1.0
Author-Name: Aliza Fleischer 
Author-X-Name-First: Aliza 
Author-X-Name-Last: Fleischer 
Author-Name: Edward Seiler 
Author-X-Name-First: Edward 
Author-X-Name-Last: Seiler 
Title: Determinants of vacation travel among Israeli seniors: theory and evidence 
Abstract:
  This study investigates determinants of vacation travel among seniors. A
 consumer choice model is developed that incorporates effects of retirement
 and health on available leisure time, and effects of age and education on
 disposable income. The empirical implications of the model depend on
 leisure and income patterns, that in turn determine if time and budget
 constraints are binding. The model is illustrated using data collected
 from Israeli seniors. Results confirm theoretical predictions regarding
 the changing effectiveness of constraints as seniors grow older. 
Journal: Applied Economics 
Pages: 421-430 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110046476 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046476 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:421-430




Template-Type: ReDIF-Article 1.0
Author-Name: David Paton 
Author-X-Name-First: David 
Author-X-Name-Last: Paton 
Title: Advertising, quality and sales 
Abstract:
  This paper investigates claims that firm-specific effects in
 advertising-sales models can be attributed to a positive correlation
 between advertising and product quality. Using a standard Koyck
 transformation on an unbalanced panel dataset of UK firms, the implied
 long-lasting effects of advertising disappear when firm-specific effects
 are taken into account. This conclusion is robust to various econometric
 approaches. However, when the firm-specific effects are retrieved, they
 are found to correlate strongly with mean advertising. There is no
 discernible link between the firm-specific effects and whether a firm
 perceives quality to be an important form of competition in its market.
 The results give no support to the idea that advertising affects sales
 through associated product quality. They are consistent with the
 persistence of advertising within firms over time. 
Journal: Applied Economics 
Pages: 431-438 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110046025 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046025 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:431-438




Template-Type: ReDIF-Article 1.0
Author-Name: Lars Nilsson 
Author-X-Name-First: Lars 
Author-X-Name-Last: Nilsson 
Title: Trading relations: is the roadmap from Lometo Cotonou correct? 
Abstract:
  One of the reasons behind the re-negotiation of the Lome Convention,
 resulting in the Cotonou Agreement, was the alleged inability of the trade
 provisions of Lome to increase the African, Caribbean and Pacific (ACP)
 countries' market share of the European Union (EU) market. The Cotonou
 Agreement may lead to the more advanced ACPs being granted future market
 access to the EU under a generalized system of preferences (GSP), in
 conformity with World Trade Organization (WTO) rules. To this end, this
 paper makes a comparative analysis of the effects of the EU's Lome
 Convention and GSP on exports of developing countries using a gravity type
 of model. The results indicate positive and statistically significant
 export effects of the both the Lome Convention and the GSP. The export
 effects are greater in case of the Lome Convention throughout the study
 period running from 1973 to 1992. In addition, the paper illustrates the
 EU country distribution of the export effects and shows that Belgium and
 The Netherlands are the EU countries that most have increased their
 imports from the developing countries under both the Lome Convention and
 the GSP. 
Journal: Applied Economics 
Pages: 439-452 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110046007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046007 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:439-452




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Worthington 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Worthington 
Author-Name: Brian Dollery 
Author-X-Name-First: Brian 
Author-X-Name-Last: Dollery 
Title: Incorporating contextual information in public sector efficiency analyses: a comparative study of NSW local government 
Abstract:
  Using the planning and regulatory function of 173 NSW local governments,
 several approaches for incorporating contextual or non-discretionary
 inputs in data envelopment analysis (DEA) are compared. Non-discretionary
 inputs (or factors beyond managerial control) in this context include the
 population growth rate and distribution, the level of development and
 non-residential building activity, and the proportion of the population
 from a non-English speaking background. The approaches selected to
 incorporate these variables include discretionary inputs only,
 non-discretionary and discretionary inputs treated alike and differently,
 categorical inputs, 'adjusted' DEA, and 'endogenous' DEA. The results
 indicate that the efficiency scores of the five approaches that
 incorporated non-discretionary factors were significantly positively
 correlated. However, it was also established that the distributions of the
 efficiency scores and the number of councils assessed as perfectly
 technically efficient in the six approaches also varied significantly
 across the sample. 
Journal: Applied Economics 
Pages: 453-464 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110044171 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044171 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:453-464




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dobson 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Dobson 
Author-Name: Carlyn Ramlogan 
Author-X-Name-First: Carlyn 
Author-X-Name-Last: Ramlogan 
Title: Convergence and divergence in Latin America, 1970-1998 
Abstract:
  This paper examines the process of convergence in Latin America over the
 period 1970-1998. There has been relatively little work on income
 convergence among developing countries in general and in Latin America in
 particular, even though many studies have examined convergence both within
 and among developed countries. There is little support for the convergence
 hypothesis over the sample period as a whole - although the beta
 coefficient is positive, it is insignificant. Convergence is strong in the
 1970s but by the 1990s it has disappeared. There is no evidence of a
 narrowing in the cross-country dispersion of income (sigma convergence)
 for the sample period as a whole. The results offer little support for the
 neo-classical growth model - poorer countries have not grown faster than
 richer ones. There is a strong case for strengthening regional development
 policy. 
Journal: Applied Economics 
Pages: 465-470 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110046467 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046467 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:465-470




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Author-Name: David Berri 
Author-X-Name-First: David 
Author-X-Name-Last: Berri 
Title: The impact of the 1981 and 1994-1995 strikes on Major League Baseball attendance: a time-series analysis 
Abstract:
  Protracted labour disputes in professional team sports have become
 increasingly common in the past 30 years. Although each of the four major
 professional team sports in the USA have experienced episodes of labour
 strife, Major League Baseball has the longest and most frequent experience
 with labour-management conflict. Fans and the media claim with each
 incident permanent harm is done to baseball's standing as the national
 pastime. The purpose of this paper is to ascertain whether such claims can
 be supported by the empirical evidence. Utilizing time-series analysis,
 aggregate attendance at professional baseball games is examined. The
 evidence presented suggests that although the most protracted periods of
 labour discord had short-term impacts on attendance, there is no empirical
 evidence that these exogenous shocks had any long-term effects. 
Journal: Applied Economics 
Pages: 471-478 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110044162 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044162 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:471-478




Template-Type: ReDIF-Article 1.0
Author-Name: Virginia Wilcox-Gok 
Author-X-Name-First: Virginia 
Author-X-Name-Last: Wilcox-Gok 
Title: The effects of for-profit status and system membership on the financial performance of hospitals 
Abstract:
  This research examines whether for-profit status or system membership is
 significantly related to the financial performance of hospitals. Panel
 data containing 573 observations of Florida hospitals for 1984 through
 1987 are used in a fixed-effects regression model. The results indicate
 that it is system membership rather than forprofit status that is
 significantly related to better financial performance. For-profit status
 is unrelated to overall financial performance. System hospitals have
 higher revenues per admission, but not higher expenditures per admission
 than independent hospitals. The findings are consistent with the
 hypothesis that expanding hospital systems target locations and services
 that are potentially profitable. 
Journal: Applied Economics 
Pages: 479-489 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110044180 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044180 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:479-489




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chung Nieh 
Author-X-Name-First: Chien-Chung 
Author-X-Name-Last: Nieh 
Title: The effect of the Asian financial crisis on the relationships among open macroeconomic factors for Asian countries 
Abstract:
  This study investigates the effect of Asian financial crisis on the
 relationships among exchange rate volatility, export, import, and
 productivity for Taiwan, Korea, Malaysia, and Indonesia. Cointegration
 tests show no change for the long-run equilibrium relationship among these
 variables throughout the crisis. Granger causality finds that some
 exogeneity orderings alter from pre- to post-crisis periods for the
 countries considered. Impulse response functions (IRs) for the pre-crisis
 period demonstrate the primary importance of productivity, then second
 importance of export. For the post-crisis period, oscillatory paths around
 zero of the IRs imply an ambiguous finding for the direction of effect and
 relative exogeneity among variables studied. The variance decompositions
 in export for Taiwan, Korea and Malaysia, and in productivity for Malaysia
 and Indonesia did not change from the pre-crisis to the post-crisis era.
 However, most of the rest of the forecast error variances in variables
 were decomposed into their own innovation more proportional in the
 pre-crisis period than in the post-crisis period. 
Journal: Applied Economics 
Pages: 491-502 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110046827 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046827 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:491-502




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Maria Angulo 
Author-X-Name-First: Ana Maria 
Author-X-Name-Last: Angulo 
Author-Name: Jose Maria Gil 
Author-X-Name-First: Jose Maria 
Author-X-Name-Last: Gil 
Author-Name: Boubaker Dhehibi 
Author-X-Name-First: Boubaker 
Author-X-Name-Last: Dhehibi 
Author-Name: Jesus Mur 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Mur 
Title: Town size and the consumer behaviour of Spanish households: a panel data approach 
Abstract:
  The aim of this paper is to analyse the effect of town size on the
 Spanish demand for food. The methodological approach followed in the study
 is to use panel data built from the Spanish Quarterly National Expenditure
 Survey to estimate a demand system. The use of this type of data allows
 control for unobserved time invariant heterogeneity as well as to take
 into account the time and the cross-section dimension of data. Four
 locations are distinguished: (1) less than 10000 inhabitants; (2) between
 10000 and 100000 inhabitants; (3) between 100000 and 500000 inhabitants;
 and (4) more than 500000 inhabitants. Eight broad food categories are
 considered: (1) cereals and potatoes; (2) meat; (3) fish; (4) dairy
 products; (5) fats and oils; (6) fruits; (7) vegetables; and (8) other
 food. Income and price elasticities are calculated for each location. In
 general terms, two general conclusions can be drawn. First, results
 indicate that only slight changes in tastes have taken place during the
 analysed period; second, income and price elasticities use to decrease as
 town size increases. 
Journal: Applied Economics 
Pages: 503-507 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110047583 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110047583 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:503-507




Template-Type: ReDIF-Article 1.0
Author-Name: Maria De Mello 
Author-X-Name-First: Maria 
Author-X-Name-Last: De Mello 
Author-Name: Alan Pack 
Author-X-Name-First: Alan 
Author-X-Name-Last: Pack 
Author-Name: M. Thea Sinclair 
Author-X-Name-First: M. Thea 
Author-X-Name-Last: Sinclair 
Title: A system of equations model of UK tourism demand in neighbouring countries 
Abstract:
  This paper uses a system of equations model to examine tourism demand
 during periods of destination country transition and integration into the
 wider international community. The Almost Ideal Demand System model is
 applied to the UK demand for tourism in the neighbouring destinations,
 France, Spain and Portugal. Spain and Portugal are interesting cases as,
 during the period under consideration, they experienced a process of
 transition from economies with characteristics typical of developing
 countries, only entering the World Bank's industrialized countries
 classification in the 1980s. The paper examines the evolution of tourism
 demand during these countries' transition from 'developing' to 'developed'
 status. Consideration of France as a neighbouring destination also allows
 the behaviour of tourism demand to be compared between relatively rich and
 poor countries. The results show the extent to which the cross-country
 behaviour of demand becomes more or less similar over time with respect to
 changes in expenditure and effective prices. The expenditure elasticities
 are greater for Spain than France during the initial period, indicating
 that tourism can assist countries to 'catch-up' with their richer
 neighbours. However, this outcome is not always the case and may not
 persist, as Portugal had a low initial expenditure elasticity and Spain's
 relatively high expenditure elasticity decreased over time. Destinations'
 sensitivity to changes in their own and competitors' prices can also
 change over time, as indicated by the increases in the own- and
 cross-price elasticities for Spain, compared with the decreases for France
 and Portugal. The cross-price elasticity estimates indicate
 substitutability between the immediate neighbours, Portugal and Spain, and
 France and Spain. 
Journal: Applied Economics 
Pages: 509-521 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110049310 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110049310 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:509-521




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Bohringer 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Bohringer 
Title: Industry-level emission trading between power producers in the EU 
Abstract:
  This paper investigates how restrictions for emission trading to the
 energy-intensive power sector will affect the magnitude and distribution
 of abatement costs across EU countries vis-a-vis a comprehensive EU
 emission trading regime. It is found that emission trading between
 European power sectors allows the harvest of a major part of the
 efficiency gains provided by full trade as compared to strictly domestic
 action. However, trade restrictions may create a more unequal distribution
 of abatement costs across member states than is the case for a
 comprehensive trade regime. The reason for this is that restricted permit
 trade enhances secondary terms-of-trade benefits to EU member countries
 with low marginal abatement costs at the expense of the other EU member
 states. 
Journal: Applied Economics 
Pages: 523-533 
Issue: 4 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110052163 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110052163 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:523-533




Template-Type: ReDIF-Article 1.0
Author-Name: Clive Belfield 
Author-X-Name-First: Clive 
Author-X-Name-Last: Belfield 
Author-Name: R. D. F. Harris 
Author-X-Name-First: R. D. F. 
Author-X-Name-Last: Harris 
Title: How well do theories of job matching explain variations in job satisfaction across education levels? Evidence for UK graduates 
Abstract:
  Using ordered probit estimation technique this paper examines the job
 satisfaction of recent UK graduates. Focussing primarily on explaining job
 satisfaction in terms of individuals matching to jobs, with the match
 depending on reservation returns, information sets and job offer rates.
 Only limited support can be found for the argument that job matching
 explains higher job satisfaction. In addition, stylizing graduates as a
 peer group, who form satisfaction levels based on their rankings relative
 to each other we examine whether or not education quality, which raises
 peer group status and increases the job offer rate, is systematically
 related to job satisfaction. The results broadly support the hypothesis
 that job satisfaction is neutral across graduates of different education
 qualities. However, our specification tests indicate that ordered probit
 estimation may not be fully appropriate for identifying the
 characteristics of those with high job satisfaction. 
Journal: Applied Economics 
Pages: 535-548 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110041895 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110041895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:535-548




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Lane 
Author-X-Name-First: Philip 
Author-X-Name-Last: Lane 
Author-Name: Gian Maria Milesi-Ferretti 
Author-X-Name-First: Gian Maria 
Author-X-Name-Last: Milesi-Ferretti 
Title: Long-run determinants of the Irish real exchange rate 
Abstract:
  Smooth adjustment to real exchange rate shifts is one of the major
 challenges facing the Irish economy under EMU. Rather than assume
 purchasing power parity, the long-run real exchange rate is modelled as
 time-varying, being determined by relative output levels, the terms of
 trade and the net foreign asset position. It is shown that these factors
 account for a large proportion of the long-run movement in the Irish real
 exchange rate. 
Journal: Applied Economics 
Pages: 549-553 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110036729 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036729 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:549-553




Template-Type: ReDIF-Article 1.0
Author-Name: Nigel Driffield 
Author-X-Name-First: Nigel 
Author-X-Name-Last: Driffield 
Title: Determinants of inward investment in the UK, a panel analysis 
Abstract:
  This paper develops an inter-industry model of inward investment, using a
 fixed effects approach. This demonstrates that when inward investment is
 investigated in such a framework, previous findings, relating to the
 specification of measures of location advantage and ownership advantages
 no longer hold. This also shows that there are some industries that have
 attracted significant inward investment over time, and continue to do so,
 while others are noticeably less successful. Reasons for this, and
 potential policy measures are briefly discussed. 
Journal: Applied Economics 
Pages: 555-560 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110099243 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099243 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:555-560




Template-Type: ReDIF-Article 1.0
Author-Name: Stirling Bryan 
Author-X-Name-First: Stirling 
Author-X-Name-Last: Bryan 
Author-Name: David Parry 
Author-X-Name-First: David 
Author-X-Name-Last: Parry 
Title: Structural reliability of conjoint measurement in health care: an empirical investigation 
Abstract:
  This paper is concerned with the structural reliability of conjoint
 measurement when applied in a health care setting. The clinical context
 was the diagnosis and treatment of knee injuries. A conjoint measurement
 study was conducted which used the pairwise choice approach to preference
 elicitation. Each choice included two scenarios: a conventional treatment
 approach to management (arthroscopy) and an approach using magnetic
 resonance imaging. In order to test for structural reliability two
 separate conjoint measurement exercises were conducted: exercise A where
 scenarios were defined in terms of three attributes and exercise B where
 scenarios included all four attributes. The assessment of structural
 reliability involved a comparison of two random effects probit models, for
 exercises A and B. Data were collected on a total of 176 students of
 sports science. The results strongly indicate that the models for the two
 exercises are different, although the instability is limited to the
 constant term and a single model attribute (i.e. the avoidance of
 surgery). The finding of instability in the constant coefficient raises
 important questions about the appropriateness of labelling scenarios in
 conjoint measurement exercises. 
Journal: Applied Economics 
Pages: 561-567 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110103733 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110103733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:561-567




Template-Type: ReDIF-Article 1.0
Author-Name: Michael French 
Author-X-Name-First: Michael 
Author-X-Name-Last: French 
Title: Physical appearance and earnings: further evidence 
Abstract:
  The literature contains numerous studies on earnings differentials based
 on age, race, and gender. Comparatively few studies have examined
 differences in labour market success related to physical appearance. Using
 three waves of data collected at two organizations, this paper tested for
 earnings differentials among workers based on their self-reported
 appearance. Significant earnings premiums for attractiveness were found
 for women, but not for men. 
Journal: Applied Economics 
Pages: 569-572 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010027568 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010027568 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:569-572




Template-Type: ReDIF-Article 1.0
Author-Name: Wanki Moon 
Author-X-Name-First: Wanki 
Author-X-Name-Last: Moon 
Author-Name: Wojciech Florkowski 
Author-X-Name-First: Wojciech 
Author-X-Name-Last: Florkowski 
Author-Name: Larry Beuchat 
Author-X-Name-First: Larry 
Author-X-Name-Last: Beuchat 
Author-Name: Anna Resurreccion 
Author-X-Name-First: Anna 
Author-X-Name-Last: Resurreccion 
Author-Name: Pavlina Paraskova 
Author-X-Name-First: Pavlina 
Author-X-Name-Last: Paraskova 
Author-Name: Jordan Jordanov 
Author-X-Name-First: Jordan 
Author-X-Name-Last: Jordanov 
Author-Name: Manjeet Chinnan 
Author-X-Name-First: Manjeet 
Author-X-Name-Last: Chinnan 
Title: Demand for food variety in an emerging market economy 
Abstract:
  Using food intake survey data collected in Bulgaria in 1997, this study
 identified socioeconomic and demographic factors affecting demand for
 varied diet as measured by the count of food items and Entropy index.
 Consumer preference for food variety exhibited different patterns
 depending on the length of time allowed for consumption. Estimated
 correlation coefficients indicated that daily variety deviated from that
 measured weekly and monthly. Regression analysis showed that regional
 effects differed across the three periods of time, illustrating that the
 length of time allowed for consumption is an important element in
 measuring the demand for food variety. 
Journal: Applied Economics 
Pages: 573-581 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110037863 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110037863 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:573-581




Template-Type: ReDIF-Article 1.0
Author-Name: Costas Karfakis 
Author-X-Name-First: Costas 
Author-X-Name-Last: Karfakis 
Title: Testing the quantity theory of money in Greece 
Abstract:
  This paper tests two monetarist hypotheses on the Greek data: (1) the
 predictability of income velocity of money; and (2) the proportionality
 postulate between nominal income (or, prices) and money. The unit root
 tests with structural breaks show that the velocity of narrow money can be
 characterized as a stationary process. The Autoregressive Distributed Lag
 (ARDL) approach to cointegration indicates that the proportionality
 postulate between nominal income (or, prices) and money is supported by
 the data. This evidence suggests that shocks which affect the money supply
 are reflected in the nominal income (or, prices) in a similar way, thus
 velocity will not fluctuate widely and its movements will be predictable. 
Journal: Applied Economics 
Pages: 583-587 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110070014 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110070014 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:583-587




Template-Type: ReDIF-Article 1.0
Author-Name: Mary O'Malley Borg 
Author-X-Name-First: Mary O'Malley 
Author-X-Name-Last: Borg 
Author-Name: Harriet Stranahan 
Author-X-Name-First: Harriet 
Author-X-Name-Last: Stranahan 
Title: The effect of gender and race on student performance in principles of economics: the importance of personality type 
Abstract:
  Do women and minorities perform more poorly in economics courses than
 their white male counterparts? There are a number of studies that indicate
 that they do (Siegfried, 1979; Ferber, et al., 1983; Lumsden and Scott,
 1987; Gohmann and Specter, 1989; Watts and Lynch, 1989; Anderson, et al.,
 1994). In addition, there are some studies that indicate that students'
 personality types adversely affect their performance in economics courses,
 as well (Borg and Shapiro, 1996; Zeigert, 2000). However, no one has yet
 studied how a student's personality type combines with race and gender to
 affect performance in economics courses. To explore this issue, this study
 tests for the statistical significance of a number of interaction effects
 between race and gender and the Kiersey-Bates temperament types in an
 ordered probit model explaining a student's grade in Principles of
 Macroeconomics. It is concluded that race and gender do matter in a
 student's performance in Principles of Macroeconomics, but not in a
 simple, direct way. Race and gender combine with temperament type to form
 more subtle, interactive effects on a student's probability of success in
 economics. In our particular sample of 119 students at the University of
 North Florida, female NF and NT students and non-white NT students
 performed more poorly in Principles of Macroeconomics than their
 counterparts who did not have these gender/temperament or race/temperament
 combinations. 
Journal: Applied Economics 
Pages: 589-598 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110039249 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110039249 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:589-598




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Martin 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Martin 
Title: Do military exports stimulate civil exports? 
Abstract:
  Recent research suggests that the economic benefits to the UK economy
 from arms exports might not be that great. Surveys suggest that almost
 two-thirds of those that lose their job in the defence industry either
 retire or find new work within one year and arms exports are heavily
 subsidized by the UK government. Thus any cut in such exports would reduce
 the annual subsidy payable by the British taxpayer. However, in addition
 to the direct economic benefits from defence exports there might be
 indirect effects. Hartley and Hooper (Does trade follow the flag? A study
 of the UK trade and security policy, Centre for Defence Economics,
 University of York, 1998) considered whether UK arms exports might lead to
 higher civil exports. This paper examines this hypothesis. It estimates
 import demand functions for three countries (Indonesia, Saudi Arabia and
 South Korea) and for the world as a whole over the period 1970-1997. The
 results suggest that UK arms exports do not stimulate UK civil exports. 
Journal: Applied Economics 
Pages: 599-605 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110039762 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110039762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:599-605




Template-Type: ReDIF-Article 1.0
Author-Name: Shakir Hussain 
Author-X-Name-First: Shakir 
Author-X-Name-Last: Hussain 
Author-Name: Ghazi Shukur 
Author-X-Name-First: Ghazi 
Author-X-Name-Last: Shukur 
Title: A simple method for detecting fractional cointegration relation: an application to Finnish data 
Abstract:
  The cointegration technique, based originally on nonstationary component,
 reduced 'Dimension Reduction' to some linear combination that is
 stationary. The obtained dimension has unit minimum and s - 1 maximum
 linear combination setting, where s stands for number of components in the
 system. In this paper a new reduction concept is provided that explains
 fractional cointegrated system. This reduction is located on specific
 angle and defined as the cointegration direction. The reduction 'Level
 Reduction' exists with smaller level of fractional orders, i.e. when -0.5
 &#x3c; dz &#x3c; 0.5, where dz represent the fractional differences of the
 linear combination series, while the original series orders are in
 &#x2265; 0.5 level and the system is fractionally cointegrated. This, of
 course, can be considered as a new way to detect fractional cointegration
 relation among variables of the same order of differencing in the
 frequency domain. A concept Periodogram Roughness (PR) is used to estimate
 and test the cointegration direction. The description of the direction
 property will be presented. A test statistic is presented that is based on
 the difference between the maximum and minimum of the PR. Using Monte
 Carlo simulations, it is found that the properties of the test perform
 satisfactorily regarding both size and power. Fractional differencing of
 linear combination series is estimated using Periodogram Roughness. This
 approach is illustrated using quarterly data on the government spending
 and revenue in Finland during the period of 1960 to 1997. 
Journal: Applied Economics 
Pages: 607-615 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110044153 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044153 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:607-615




Template-Type: ReDIF-Article 1.0
Author-Name: Gerry Boyle 
Author-X-Name-First: Gerry 
Author-X-Name-Last: Boyle 
Author-Name: Pauline McCormack 
Author-X-Name-First: Pauline 
Author-X-Name-Last: McCormack 
Title: Trade and technological explanations for changes in sectoral labour demand in OECD economies 
Abstract:
  This paper sets out to establish the main determinants of variations in
 the demand for aggregate labour in manufacturing and service sectors (22)
 for a cross-section of OECD countries (14). A relatively new panel data
 set is employed in the analysis, the OECD's International Sectoral Data
 Base. Preliminary analysis revealed that the 'within' sector variation in
 the wage share dominated overall variation for most countries and time
 periods. A separate dynamic model was thus generated to explain the
 'within' sector variation in the wage share. This model contained real
 wages, output, the capital stock, technological change (total factor
 productivity) and trade (the imports to value-added ratio) as independent
 variables. In addition the wage level was also interacted with these
 explanatory variables on the presumption that skill is positively
 correlated with the level of wages. Because of the potential for
 simultaneity bias, estimation was conducted by IV and OLS. The main
 findings were that the capital stock and technological change were the
 main determinants of shifts in labour demand. While some countries
 reported the trade variable as significant its influence was only of
 slight importance in most cases. The interaction terms proved to be
 significant in a large number of countries. Some evidence was found that
 capital and technological were complementary with skill. Overall it was
 found that broad agreement existed across countries in the factors which
 influence labour demand despite considerable differences in the
 cross-country nature of labour market institutions. 
Journal: Applied Economics 
Pages: 617-635 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110048474 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110048474 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:617-635




Template-Type: ReDIF-Article 1.0
Author-Name: Seppo Pynnonen 
Author-X-Name-First: Seppo 
Author-X-Name-Last: Pynnonen 
Author-Name: Juuso Vataja 
Author-X-Name-First: Juuso 
Author-X-Name-Last: Vataja 
Title: Bootstrap testing for cointegration of international commodity prices 
Abstract:
  This paper investigates cointegration with respect to nine commodity
 groups traded on international markets. Nonparametric bootstrapping is
 utilized in the testing procedure. Of the 21 pairs of price series,
 investigated here, for 13 the no-cointegration null hypothesis is rejected
 in favour for the cointegration of the series. In addition to five out of
 the remaining eight cases that were not cointegrated, a plausible
 explanation is the prevailing trade policy. Thus a great majority of the
 institutionally nonregulated cases turn out to get empirical support for
 being cointegrated. An important statistical finding is that the augmented
 Dickey-Fuller test for cointegration (CRADF) generally yields p-values
 that are close to the p-values obtained by the bootstrap testing. But once
 they differ substantially, it is usually an indication of irregular
 periods (e.g. structural changes) in the series. The paper conducts also a
 Monte Carlo simulation experiment to investigate the power and size
 properties of the tests. Generally the results indicate that the test
 procedures have pretty low power in small samples. Bootstrapping improves
 the testing somewhat by leading consistently to a bit more powerful
 inference. 
Journal: Applied Economics 
Pages: 637-647 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110050642 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110050642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:637-647




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Hammond 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Hammond 
Title: Efficiency in the provision of public services: a data envelopment analysis of UK public library systems 
Abstract:
  This study assesses the relative efficiency of public library services by
 examining the relationship between library inputs and library outputs in
 multi-outlet library systems. Differences in the size of the area and
 population served are reflected in differences in the number of outlets
 and mix of outlet types. Using a Data Envelopment Analysis, which controls
 for the accessibility of library resources, this study derives technical
 and overall efficiency scores for 99 UK Public Library Systems. The data
 are survey observations for 1995/1996. Over the decade leading up to the
 survey, library services had been subject to a protracted period of budget
 restraint and contraction in most areas of activity. The distribution of
 efficiency scores is skewed, implying that although many library systems
 are efficient or near-efficient, there is a tail of inefficient
 operations. Inefficiency is mainly, but not exclusively associated with
 over subscription to serial publications. Many library systems are scale
 inefficient, operating under conditions of increasing returns to scale.
 Reorganization of the service may be required if greater efficiency is to
 be achieved. 
Journal: Applied Economics 
Pages: 649-657 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110053252 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110053252 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:649-657




Template-Type: ReDIF-Article 1.0
Author-Name: Jill Holman 
Author-X-Name-First: Jill 
Author-X-Name-Last: Holman 
Author-Name: Philip Graves 
Author-X-Name-First: Philip 
Author-X-Name-Last: Graves 
Title: Implications of consumer heterogeneity in time-series estimates of US money demand 
Abstract:
  The money demand function has traditionally been estimated with income
 and interest rates, typically employing quite lengthy time series.
 Controversy, however, surrounds the importance of heterogeneous agents in
 monetary economics and throughout macroeconomics more generally. In
 particular, if proportions of agents with different traits (and hence,
 different money demands) are changing over time, ignoring those changes
 may bias estimated income and interest elasticities. This concern, as well
 as that of appropriate functional form, is explored here. Controlling for
 consumer heterogeneity has surprising effects on the estimated
 elasticities of traditional variables. 
Journal: Applied Economics 
Pages: 659-665 
Issue: 5 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110094464 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110094464 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:659-665




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mela 
Author-X-Name-First: Carl 
Author-X-Name-Last: Mela 
Author-Name: Praveen Kopalle 
Author-X-Name-First: Praveen 
Author-X-Name-Last: Kopalle 
Title: The impact of collinearity on regression analysis: the asymmetric effect of negative and positive correlations 
Abstract:
  The purpose of this paper is to ascertain how collinearity in general,
 and the sign of correlations in specific, affect parameter inference,
 variable omission bias, and their diagnostic indices in regression. It is
 found that collinearity can reduce parameter variance estimates and that
 positive and negative correlation structures have an asymmetric effect on
 variable omission bias. It is also shown that the effects of collinearity
 are moderated by the relationship between the dependent variable and the
 regressors, a consideration not incorporated into most commonly used
 collinearity diagnostics. The formulae derived enable researchers to
 assess the sensitivity of regression results to the underlying correlation
 structure in the data. 
Journal: Applied Economics 
Pages: 667-677 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110058482 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058482 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:667-677




Template-Type: ReDIF-Article 1.0
Author-Name: Awudu Abdulai 
Author-X-Name-First: Awudu 
Author-X-Name-Last: Abdulai 
Title: Using threshold cointegration to estimate asymmetric price transmission in the Swiss pork market 
Abstract:
  This paper employs threshold cointegration tests that allow for
 asymmetric adjustment towards a long-run equilibrium relationship to
 examine the relationship between producer and retail pork prices in
 Switzerland. The short-run adjustments are also examined with asymmetric
 error correction models that are compared to the conventional symmetric
 error correction models. The results indicate that price transmission
 between the producer and retail levels is asymmetric, in the sense that
 increases in producer prices that lead to declines in marketing margins
 are passed on more quickly to retail prices than decreases in producer
 prices that result in increases in the marketing margins. 
Journal: Applied Economics 
Pages: 679-687 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110054035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110054035 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:679-687




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Author-Name: Jeffrey Woods 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Woods 
Title: Employment composition and the cyclical behaviour of the aggregate real wage 
Abstract:
  This article investigates the relation between the cyclical behaviour of
 employment composition and the weighted average (aggregate) real wage in
 the USA. Cyclicality of employment composition arises in the context of
 two competing explanations of business-cycle theory: the human capital
 investment and profitability models. Consistent with the implications of
 the profitability theory, the relative share of labour hours for older
 (age &#x2265; 25) more highly-skilled and paid workers declines faster
 during recessions compared to younger ((age 16-19) and (20-24)) less
 skilled and lower-paid workers. This result, coupled with the downward
 flexibility of teenage real wages reinforces the procyclical (reduction)
 in the aggregate real wage during recessions. Interestingly, the decline
 in the relative share of workers age &#x2265; 25 during recessions is not
 accompanied by a corresponding significant decline in their nominal or
 real wages. Thus, most of the adjustment during cyclical downturns appears
 to result in a reduction in their relative share of labour hours as
 opposed to wages. In addition, the empirical results suggest that the
 relative share of employment for workers age &#x2265; 25 grows more slowly
 during expansions compared to its decline during contractions, lending
 further support to the profitability theory. The combined evidence
 highlights the importance of both employment composition and disaggregate
 real wages and their influence in determining the cyclical behaviour of
 the aggregate real wage. 
Journal: Applied Economics 
Pages: 689-708 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110053243 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110053243 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:689-708




Template-Type: ReDIF-Article 1.0
Author-Name: Ghazi Shukur 
Author-X-Name-First: Ghazi 
Author-X-Name-Last: Shukur 
Title: Dynamic specification and misspecification in systems of demand equations: a testing strategy for model selection 
Abstract:
  The purpose of this study is to describe a misspecification testing
 strategy that is designed to ensure the appropriateness of the statistical
 assumptions underlying a system of equations. A systemwise test approach
 is used to test the statistical assumptions. The systemwise tests take
 into account information in, and interaction between, all equations in the
 system and can be used in a wide variety of applications where systems of
 equations are estimated. If the systemwise test leads to rejection, single
 equation F-test will then be used to help identify specific problems. The
 systemwise testing approach is illustrated by modelling Swedish consumer
 demand for milk. The example illustrates how the approach can be used to
 solve issues regarding dynamic specification of models, structural change
 and other forms of model misspecification. 
Journal: Applied Economics 
Pages: 709-725 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110048465 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110048465 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:709-725




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Duchesneau 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Duchesneau 
Author-Name: David Wihry 
Author-X-Name-First: David 
Author-X-Name-Last: Wihry 
Title: The impact of degree programmes on university expenditure 
Abstract:
  This research examines the impact of the number and mix of academic
 degree programmes on university operating expenditure in the United
 States. Statistical results are based on data for doctoral and research
 institutions without medical schools. After controlling for other factors
 influencing expenditure, additional degree programmes are associated with
 significant increases in expenditure, with doctoral programmes having a
 40% higher marginal impact on total expenditure than baccalaureate
 programmes. Most institutions are found to be smaller than the
 expenditure-minimizing size and to have higher expenditure per
 full-time-equivalent student. As specified, the models explain a large
 amount of the variation in expenditure across the institutions. 
Journal: Applied Economics 
Pages: 727-739 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110052974 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110052974 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:727-739




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Fox 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Fox 
Title: Measuring technical progress in matching models of the labour market 
Abstract:
  Technical Progress in matching models of the labour market has not
 received serious attention. This article examines the impact on the
 results of these models when an attempt is made to allow time to enter in
 a realistic fashion, and finds that recently published results on the
 possibility of multiple equilibria are overturned. Also, different
 parametric representations of the matching technology are compared, with
 problems of more general forms not satisfying regularity conditions being
 identified. While the possibility of Pareto-improving government
 intervention due to multiple equilibria arising out of increasing returns
 to scale cannot be supported, the results suggest a role for government
 intervention in the labour market. 
Journal: Applied Economics 
Pages: 741-748 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110054017 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110054017 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:741-748




Template-Type: ReDIF-Article 1.0
Author-Name: C. J. Leon 
Author-X-Name-First: C. J. 
Author-X-Name-Last: Leon 
Author-Name: F. J. Vazquez-Polo 
Author-X-Name-First: F. J. 
Author-X-Name-Last: Vazquez-Polo 
Author-Name: N. Guerra 
Author-X-Name-First: N. 
Author-X-Name-Last: Guerra 
Author-Name: P. Riera 
Author-X-Name-First: P. 
Author-X-Name-Last: Riera 
Title: A Bayesian model for benefit transfer: application to national parks in Spain 
Abstract:
  Valuing environmental goods through benefit transfer is based on
 information from the set of past empirical studies of similar or identical
 sites. This paper proposes a Bayesian approach to model prior information
 on mean consumer surplus. The prior distribution is defined as a convex
 combination of the results from past empirical studies. An advantage of
 the Bayesian approach is that the prior distribution could be combined
 with on-site sample information in order to improve predictions on the
 benefits of the policy site. The model is applied to data from national
 parks in Spain. The results show that the benefits of policy sites are
 more sensitive to the prior information for smaller sample sizes. This
 implies that the prior distribution can be seen as a substitute for
 on-site sample information. 
Journal: Applied Economics 
Pages: 749-757 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110054026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110054026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:749-757




Template-Type: ReDIF-Article 1.0
Author-Name: Hua Wang 
Author-X-Name-First: Hua 
Author-X-Name-Last: Wang 
Author-Name: Somik Lall 
Author-X-Name-First: Somik 
Author-X-Name-Last: Lall 
Title: Valuing water for Chinese industries: a marginal productivity analysis 
Abstract:
  A marginal productivity approach is developed for valuing industrial use
 of water and applied using data from Chinese industrial firms, where
 water, as well as capital, labour and raw materials, are treated as inputs
 to a production function. Models on price elasticity of water demand
 associated with the marginal productivity approach are also developed and
 estimated for different Chinese industrial sectors. 
Journal: Applied Economics 
Pages: 759-765 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110054044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110054044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:759-765




Template-Type: ReDIF-Article 1.0
Author-Name: Ozlem Onaran 
Author-X-Name-First: Ozlem 
Author-X-Name-Last: Onaran 
Title: Measuring wage flexibility: the case of Turkey before and after structural adjustment 
Abstract:
  This article presents an empirical analysis of wage flexibility in the
 formal private sector in Turkey. The analysis is based on a wage
 bargaining model that links the nominal wage demands to labour market
 conditions, which are proxied by the rate of unemployment; productivity
 improvements; and price expectations. The model is estimated on the basis
 of panel data of the formal private manufacturing industry; and changes in
 the wage setting mechanism as the country shifts from an import
 substituting industrialization strategy to an export-oriented growth
 regime are discussed. This debate is particularly important in terms of
 its policy implications, and is relevant to current international
 discussions of the role of labour markets during structural adjustment. In
 most economic policy discussions, unemployment is assumed to be a labour
 market rigidity problem. The results of this article, however, suggest
 that increased flexibility of wages leaves little room for such arguments.
 In the light of these findings, the prospect of wage rigidity becomes
 immaterial, and a focus on the structural problems of the economy, which
 are outside the labour market, becomes central. 
Journal: Applied Economics 
Pages: 767-781 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110056934 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110056934 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:767-781




Template-Type: ReDIF-Article 1.0
Author-Name: Oner Guncavdi 
Author-X-Name-First: Oner 
Author-X-Name-Last: Guncavdi 
Author-Name: Benan Zeki Orbay 
Author-X-Name-First: Benan Zeki 
Author-X-Name-Last: Orbay 
Title: Exchange rates, market structure and price-cost margins: evidence from a developing country 
Abstract:
  This paper analyses the sensitivity of firm performance to exchange rate
 fluctuations. In a two-country world, consisting of a developing domestic
 country and a developed foreign country, we show that this sensitivity is
 closely related with market structure and the share of imported inputs in
 total cost. When the share of imported inputs is low, depreciation leads
 to an increase in price cost margin. This increase intensifies in more
 competitive industries. When the imported input share is high, the price
 cost margin may decrease as a result of depreciation, and this effect
 becomes pronounced in more competitive industries. The empirical test
 where we used 3-digit Turkish Manufacturing industry data support most of
 the findings of our model. 
Journal: Applied Economics 
Pages: 783-789 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110058464 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058464 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:783-789




Template-Type: ReDIF-Article 1.0
Author-Name: Carol Moore 
Author-X-Name-First: Carol 
Author-X-Name-Last: Moore 
Author-Name: Richard Mueller 
Author-X-Name-First: Richard 
Author-X-Name-Last: Mueller 
Title: The transition from paid to self-employment in Canada: the importance of push factors 
Abstract:
  The share of self-employment in total employment has been growing in
 Canada throughout the 1990s. Recent research for Canada and elsewhere
 suggests that some workers may be 'pushed' into self-employment as a
 response to inadequate opportunities in the paid sector. Examining
 transitions from paid work to selfemployment using the Labour Market
 Activity Survey, this push hypothesis is tested using a number of
 indicators of the economic opportunities facing the newly selfemployed. It
 is found: (i) longer spells of joblessness favour self-employment, (ii)
 workers who collect unemployment benefits between jobs are less likely to
 become self-employed than are workers who did not, (iii) workers who left
 their previous, paid jobs involuntarily - i.e., due to layoff - were more
 likely to become selfemployed than those who left voluntarily, but less
 likely than workers who specified personal reasons for leaving, and (iv)
 self-employment decisions are independent of the health of the labour
 market as measured by the unemployment rate. These results are generally
 consistent with the push hypothesis but provide more ambiguous evidence
 than found in some other studies. 
Journal: Applied Economics 
Pages: 791-801 
Issue: 6 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110058473 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058473 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:791-801




Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Jimenez 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Jimenez 
Author-Name: Domenico Marchetti 
Author-X-Name-First: Domenico 
Author-X-Name-Last: Marchetti 
Title: Interpreting the procyclical productivity of manufacturing sectors: can we really rule out external effects? 
Abstract:
  Recent empirical contributions on procyclical productivity have focused
 on the dynamic implications of persistent aggregate fluctuations on
 sectoral productivity. Given a permanent innovation in aggregate output,
 unobserved variations of labour (or capital) utilization may have only a
 transitory effect on measured productivity, whereas external effects
 should produce permanent effects. It is found that persistent aggregate
 fluctuations have a permanent effect on productivity of four-digit US
 manufacturing industries. While a number of alternative explanations of
 this evidence are discussed and ruled out, the findings are consistent
 with a simple model with external or thick market effects. 
Journal: Applied Economics 
Pages: 805-817 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110058491 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058491 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:805-817




Template-Type: ReDIF-Article 1.0
Author-Name: Suzanne McCoskey 
Author-X-Name-First: Suzanne 
Author-X-Name-Last: McCoskey 
Title: Convergence in Sub-Saharan Africa: a nonstationary panel data approach 
Abstract:
  Given the development of time series econometrics and nonstationary data
 analysis, St. Aubyn (Empirical Economics, 24, 23-44, 1999) demonstrates a
 new paradigm for testing income convergence, or better defined, income
 stability, namely testing the stationarity of pair-wise income
 differentials. In this paper, a panel data set of Sub-Saharan African
 countries is constructed and panel cointegration and unit root tests are
 used to investigate the convergence properties of incomes and standards of
 living within Africa. Overall, little evidence is found to substantiate
 claims of convergence across Africa, although in some cases, smaller
 convergence clubs within Africa may be found. In addition the use of
 nonstationary panel data techniques is proposed for the testing and
 establishing of coherent convergence clubs. 
Journal: Applied Economics 
Pages: 819-829 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110061668 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061668 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:819-829




Template-Type: ReDIF-Article 1.0
Author-Name: Hans-Jurgen Engelbrecht 
Author-X-Name-First: Hans-Jurgen 
Author-X-Name-Last: Engelbrecht 
Title: Human capital and international knowledge spillovers in TFP growth of a sample of developing countries: an exploration of alternative approaches 
Abstract:
  This study tests and compares the two major approaches to the modelling
 of human capital in growth regressions, i.e. the Lucas and the
 Nelson-Phelps approach, in the context of developing country models with
 international knowledge spillovers. On balance, the results seem to favour
 the Nelson-Phelps approach. Using human capital stock variables instead of
 flow variables, a positive role for human capital in the absorption of
 international knowledge spillovers other than embodied R&D spillovers is
 confirmed. The results suggest the importance of distinguishing between
 different types of international knowledge spillovers, as well as between
 different human capital sub-categories. 
Journal: Applied Economics 
Pages: 831-841 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110061947 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061947 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:831-841




Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Ansotegui 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Ansotegui 
Author-Name: Maria Victoria Esteban 
Author-X-Name-First: Maria Victoria 
Author-X-Name-Last: Esteban 
Title: Cointegration for market forecast in the Spanish stock market 
Abstract:
  This study is interested in empirically testing the existence of a
 long-run relationship between the Spanish stock market and its
 fundamentals, and in checking to which extent this relationship helps in
 forecasting. This study is concerned with the behaviour of the aggregate
 Madrid Stock Exchange in a macroeconomic context. It also identifies as
 macroeconomic fundamentals: industrial production as a proxy for real
 activity, inflation and interest rates. This study tests the existence of
 cointegration by Johansen's procedure. The long-run relationships among
 the variables implied by the existence of cointegration do not allow
 inference to the interrelations among the variables. To get some insight
 into the short-run interactions among the variables, an impulse response
 analysis was performed. This study compares the forecasting ability of its
 model with respect to alternative multivariate specifications in terms of
 RMSE. Also measured is the value of the forecast for the financial agents
 assessing the extent to which it helps improve asset allocation. 
Journal: Applied Economics 
Pages: 843-857 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110058932 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058932 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:843-857




Template-Type: ReDIF-Article 1.0
Author-Name: Jong Eun Lee 
Author-X-Name-First: Jong Eun 
Author-X-Name-Last: Lee 
Title: Real interest rates in regional economic blocs 
Abstract:
  This paper investigates the long run relationship of real interest rates
 within a number of economic blocs such as Asia-Pacific, Europe, North
 America using cointegration analysis and vector error correction models. 
Journal: Applied Economics 
Pages: 859-864 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110118124 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110118124 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:859-864




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Bauer 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Bauer 
Author-Name: Regina Riphahn 
Author-X-Name-First: Regina 
Author-X-Name-Last: Riphahn 
Title: Employment effects of payroll taxes - an empirical test for Germany 
Abstract:
  This study tests to what degree the incidence of payroll taxes in Germany
 is on employment and whether in consequence payroll taxes, in particular
 social insurance contributions, are the culprit behind the growing
 unemployment problem. Using industry level data for 18 years (1977-1994) a
 system of five dynamic factor demand equations is estimated. Various
 simulations indicate that the employment effects of payroll taxes are
 minimal. 
Journal: Applied Economics 
Pages: 865-876 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110058914 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058914 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:865-876




Template-Type: ReDIF-Article 1.0
Author-Name: Jacint Balaguer 
Author-X-Name-First: Jacint 
Author-X-Name-Last: Balaguer 
Author-Name: Manuel Cantavella-Jorda 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Cantavella-Jorda 
Title: Tourism as a long-run economic growth factor: the Spanish case 
Abstract:
  This paper examines the role of tourism in the Spanish long-run economic
 development. The tourism-led growth hypothesis is confirmed through
 cointegration and causality testing. The results indicate that, at least,
 during the last three decades, economic growth in Spain has been sensible
 to persistent expansion of international tourism. The increase of this
 activity has produced multiplier effects over time. External competitivity
 has also been proved in the model to be a fundamental variable for Spanish
 economic growth. From the empirical analysis it can be inferred the
 positive effects on income that government policy, in the adequacy of
 supply as well as in the promotion of tourist activity, may bring about. 
Journal: Applied Economics 
Pages: 877-884 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110058923 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058923 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:877-884




Template-Type: ReDIF-Article 1.0
Author-Name: Jordan Shan 
Author-X-Name-First: Jordan 
Author-X-Name-Last: Shan 
Title: A VAR approach to the economics of FDI in China 
Abstract:
  Using a vector autoregression (VAR) approach, this study re-examines
 several hypotheses suggested by the economic literature on the economics
 of FDI applying quarterly time series data from China, a country which has
 recently become the second largest host country for FDI. Innovation
 accounting (variance decomposition and impulse response function analysis)
 is applied to analyse the various interrelationships between FDI and other
 economic variables of interest in a VAR system. The empirical research
 using this method in the case of China is limited, the study therefore
 provides an interesting advance in the literature on the economics of FDI
 in China. 
Journal: Applied Economics 
Pages: 885-893 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110058941 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058941 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:885-893




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Simona Andreano 
Author-X-Name-First: Maria Simona 
Author-X-Name-Last: Andreano 
Author-Name: Giovanni Savio 
Author-X-Name-First: Giovanni 
Author-X-Name-Last: Savio 
Title: Further evidence on business cycle asymmetries in G7 countries 
Abstract:
  This paper tests for business cycle symmetry in G7 countries during the
 post-World War II period using a number of tests, each reflecting
 alternative definitions of business cycle asymmetry. The tests are applied
 to monthly coincident economic indicators of business cycles. This found
 that business cycles in the US are characterized by both longitudinal
 (deepness) and transversal (steepness and sharpness) asymmetries: further,
 it is found that asymmetric transition probabilties and time
 irreversibility are due to nonlinearities. On the contrary, business
 cycles in Germany exhibits a symmetric behaviour. Between these extremes
 are the other countries, for which at least one of the tests here
 considered rejects the null of cyclical symmetry. Particularly, business
 cycle is characterized by deepness and sharpness in Canada, asymmetry in
 persistence in France and Japan, and asymmetric transition probabilities
 in France and United Kingdom. 
Journal: Applied Economics 
Pages: 895-904 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110060984 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110060984 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:895-904




Template-Type: ReDIF-Article 1.0
Author-Name: Marie Mora 
Author-X-Name-First: Marie 
Author-X-Name-Last: Mora 
Author-Name: Alberto Davila 
Author-X-Name-First: Alberto 
Author-X-Name-Last: Davila 
Title: State English-only policies and English-language investments 
Abstract:
  Many states in the US have considered adopting 'English-only' legislation
 since the early 1980s. This paper argues that this legislation has a
 variety of expected and unexpected outcomes. Using the 1980 and 1990
 Integrated Public Use Microdata Series (IPUMS), this study finds that
 Asian immigrants in general and Hispanic immigrants who arrived to the US
 prior to 1970 acquired more English fluency on average during the 1980s
 when residing in states that passed English-only (EO) legislation compared
 to their similar peers. The passage of such legislation also appears to
 have distorted residence decisions as well as the relative quality of
 immigrants between EO and non-EO states. 
Journal: Applied Economics 
Pages: 905-915 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110061677 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061677 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:905-915




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Schittenkopf 
Author-X-Name-First: Christian 
Author-X-Name-Last: Schittenkopf 
Author-Name: Peter Tino 
Author-X-Name-First: Peter 
Author-X-Name-Last: Tino 
Author-Name: Georg Dorffner 
Author-X-Name-First: Georg 
Author-X-Name-Last: Dorffner 
Title: The benefit of information reduction for trading strategies 
Abstract:
  Motivated by previous findings that discretization of financial time
 series can effectively filter the data and reduce the noise, this
 experimental study compares the trading performance of predictive models
 based on different modelling paradigms in a realistic setting. Different
 methods ranging from real-valued time series models to predictive models
 on a symbolic level are applied to predict the daily change in volatility
 of two major stock indices. The predicted volatility changes are
 interpreted as trading signals for buying or selling a straddle portfolio
 on the underlying stock index. Profits realized by this trading strategy
 are tested for statistical significance taking into account transactions
 costs. The results indicate that symbolic information processing is a
 promising approach to financial prediction tasks undermining the
 hypothesis of efficient capital markets. 
Journal: Applied Economics 
Pages: 917-930 
Issue: 7 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110061938 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061938 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:917-930




Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Affuso 
Author-X-Name-First: Luisa 
Author-X-Name-Last: Affuso 
Title: An empirical study on contractual heterogeneity within the firm: the 'vertical integration-franchise contracts' mix 
Abstract:
  This paper tests a discrete choice model on the mix of franchised and
 company owned outlets (contractual heterogeneity) within the firm. This is
 often explained by the existing literature as due to heterogeneous
 characteristics of the outlets. However, correspondence between outlets
 and contracts characteristics is not often observed in reality. An
 explanation is proposed which suggests that contract mixing is driven by
 the contractual choice of both principal and agents, and that
 heterogeneous agents will choose contracts that match their
 characteristics. This hypothesis is supported by econometric results,
 based on outlet level microdata collected by means of a survey of UK
 firms. 
Journal: Applied Economics 
Pages: 931-944 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110065817 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110065817 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:931-944




Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Scacciavillani 
Author-X-Name-First: Fabio 
Author-X-Name-Last: Scacciavillani 
Author-Name: Phillip Swagel 
Author-X-Name-First: Phillip 
Author-X-Name-Last: Swagel 
Title: Measures of potential output: an application to Israel 
Abstract:
  This paper estimates measures of potential output for Israel, with the
 aim of providing evidence on whether the recent growth slowdown is
 principally a cyclical slowdown or a structural shift towards a slower
 growth path after the dramatic developments associated with the years of
 heavy immigration. Israel poses a challenge because traditional methods of
 measuring potential output assume relatively stable conditions over an
 extended period of time. Five methodologies are employed to derive
 estimates and it is found that four of the measures imply the slowdown
 stems largely from reduced growth of potential output rather than a
 cyclical slowdown. 
Journal: Applied Economics 
Pages: 945-957 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110069174 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110069174 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:945-957




Template-Type: ReDIF-Article 1.0
Author-Name: Olof Johansson-Stenman 
Author-X-Name-First: Olof 
Author-X-Name-Last: Johansson-Stenman 
Title: Estimating individual driving distance by car and public transport use in Sweden 
Abstract:
  How much to drive, and how much to use public transport, are modelled as
 three and two level decisions, respectively, based on micro-data for
 Sweden. The choices whether to have a car, whether to drive given access
 to a car, and how much to drive given that the individual drives at all
 are then estimated using a three equation model. Also after correcting for
 other variables, such as income, men are driving much more, and using less
 public transport, compared to women. People living in big cities are less
 likely to drive, but those who do are on average driving about as much as
 others. Age and access to company cars are also important determinants for
 travel behaviour, but being a member of an environmental organization is
 not. Driving increases with income, but to a lower degree compared to most
 aggregated studies on national level. The difference is explained in a
 model with income dependent structural changes, implying that it becomes
 more difficult to live without a car when average income increases. This
 indirect effect is found to be of a similar size as the ordinary income
 elasticity typically found in cross-section analysis within a country or
 region. 
Journal: Applied Economics 
Pages: 959-967 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110068823 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110068823 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:959-967




Template-Type: ReDIF-Article 1.0
Author-Name: John Davis 
Author-X-Name-First: John 
Author-X-Name-Last: Davis 
Author-Name: Ping Zong 
Author-X-Name-First: Ping 
Author-X-Name-Last: Zong 
Title: Household own-consumption and grain marketable surplus in China 
Abstract:
  This paper explores the interrelationships between Chinese grain prices,
 farm households' income, their own-consumption of grain and their
 marketable surplus supply during the rural reform era. A Gorman polar
 indirect utility function is employed, from which a set of household grain
 supply and consumption functions are estimated. The integrated modelling
 approach recognizes the interdependence of household supply and
 consumption decisions. A set of compensated elasticities are derived to
 show the effects of grain prices, farm income and full household income on
 grain consumption and on-farm labour supply. The impact of own-consumption
 on marketable surplus supply is then gauged by estimating conditional and
 unconditional price elasticities of marketable surplus supply. The results
 point to the relatively strong positive effect of off-farm income on
 household's own-consumption of grain and the negative influence this has
 had on the marketable surplus of grain in China during the reform era. 
Journal: Applied Economics 
Pages: 969-974 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110065826 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110065826 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:969-974




Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon 
Author-X-Name-First: Franklin 
Author-X-Name-Last: Mixon 
Title: Social security trust fund flows and the welfare costs of rent seeking 
Abstract:
  The current study provides estimates from a Parks regression (using panel
 data) that suggest that the welfare costs due to rent seeking efforts by
 interest groups to obtain Social Security trust fund flows ranged from
 approximately $132 million (per twoyear federal election cycle from
 1985-1994) to a theoretical expectation of $66 billion, all in real terms.
 These welfare costs are in addition to any other social costs that may be
 present, including the reduced levels of national saving that Social
 Security may induce. 
Journal: Applied Economics 
Pages: 975-979 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110062009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110062009 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:975-979




Template-Type: ReDIF-Article 1.0
Author-Name: Kellie Curry Raper 
Author-X-Name-First: Kellie Curry 
Author-X-Name-Last: Raper 
Author-Name: Maria Namakhoye Wanzala 
Author-X-Name-First: Maria Namakhoye 
Author-X-Name-Last: Wanzala 
Author-Name: Rodolfo Nayga 
Author-X-Name-First: Rodolfo 
Author-X-Name-Last: Nayga 
Title: Food expenditures and household demographic composition in the US: a demand systems approach 
Abstract:
  Food expenditures and subsistence quantities of poverty status and
 non-poverty status US households are analysed within a Linear Expenditure
 System that postulates subsistence quantities to be linear combinations of
 demographic variables. Using the US Bureau of Labor Statistics' 1992
 Consumer Expenditure Survey and Detailed Monthly Consumer Price Indices,
 this article obtains expenditure elasticities, own-price elasticities and
 subsistence quantities for each income group across nine broadly
 aggregated food commodity groups. Elasticity estimates and subsistence
 quantity estimates differ across income groups, supporting the premise
 that policies targeted at specific income groups should be based on the
 target group's elasticity estimates rather than average population
 elasticities. Parameter estimates are then used to simulate how
 subsistence quantities and own-price elasticities can be expected to vary
 according to the demographic composition of the household within a
 specific income group. 
Journal: Applied Economics 
Pages: 981-992 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110061959 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061959 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:981-992




Template-Type: ReDIF-Article 1.0
Author-Name: James Johnston 
Author-X-Name-First: James 
Author-X-Name-Last: Johnston 
Title: Tenure, promotion and executive remuneration 
Abstract:
  Commentators frequently remark on the need to pay high levels of chief
 executive officer remuneration to attract, motivate and retain the best
 executives for Britain's leading companies. This paper presents the
 results of an empirical investigation into tenure, promotion and executive
 remuneration. The remuneration of the chief executive officers at some of
 Britain's largest businesses is examined. In the majority of cases the CEO
 had not been lured away from rivals but had risen through the internal
 labour market, often after a long-term employment relationship. Moreover,
 long job tenure and internal promotion were associated with higher levels
 of pay. It is concluded that understanding of this controversial issue
 will be improved if it is recognized that a part of current executive pay
 may be a reward for previous successful performance. 
Journal: Applied Economics 
Pages: 993-997 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110069967 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110069967 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:993-997




Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Ang Lin 
Author-X-Name-First: Chi-Ang 
Author-X-Name-Last: Lin 
Title: On the level of persistence in government size: time-series evidence and implications for the US 
Abstract:
  For most developed countries, the study of the long-term trend of
 government size has become a major issue. This study employs advanced
 time-series techniques to investigate the long-run properties of the
 government size series for the US. By applying the persistence measures
 developed by Campbell and Mankiw (Quarterly Journal of Economics, 102,
 857-80, 1987) and Cochrane (Journal of Political Economy, 96, 893-920,
 1988), this study finds big long-term persistence in government size at
 all levels of the US government. The finding, indeed, explains the fact
 that the US has gradually taken steps to control the size of government in
 the 1990s. 
Journal: Applied Economics 
Pages: 999-1005 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210138347 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138347 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:999-1005




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Llorca Vivero 
Author-X-Name-First: Rafael Llorca 
Author-X-Name-Last: Vivero 
Title: The impact of process innovations on firm's productivity growth: the case of Spain 
Abstract:
  The main aim of this paper is to investigate about the effect that a
 measure of the process innovation performance of a firm has on its labour
 productivity growth. This analysis is mainly a consequence of two
 considerations. The first one results from a clear differentiation of the
 role that product and process innovations have on a firm's performance.
 The second one is to assume that the knowledge capital of a firm is mainly
 composed by its successful research. The study demonstrates that process
 innovation has a positive and significant effect on firm's productivity
 growth. Moreover, this result is robust under a wide range of alternative
 specifications and, in any case, the variable behaves much better than R&D
 intensity. Following previous research, the detected quadratic
 relationship between vertical product differentiation and process
 innovation performance leads to the existence of some firms for which
 there exist a trade-off between quality and productivity. 
Journal: Applied Economics 
Pages: 1007-1016 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840010019684 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010019684 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1007-1016




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Asche 
Author-X-Name-First: Frank 
Author-X-Name-Last: Asche 
Author-Name: Daniel Gordon 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Gordon 
Author-Name: Rognvaldur Hannesson 
Author-X-Name-First: Rognvaldur 
Author-X-Name-Last: Hannesson 
Title: Searching for price parity in the European whitefish market 
Abstract:
  The purpose of this paper is to test for price parity across different
 species of whitefish in the European Union. Price parity is defined by a
 system of cointegrated prices and would be evidence of a single European
 market for whitefish. Whitefish are of interest because EU fishers receive
 the largest share of their income from these fish species. Notwithstanding
 the single market policy of the EU, by establishing national and regional
 associations to stabilize or increase the local price of fish, fishers
 operate as if the European market is made up of separate submarkets with
 price being determined largely within each submarket. If whitefish markets
 were price cointegrated such associations would be largely ineffective. In
 that case, what are required are regulations that encompass the European
 market. 
Journal: Applied Economics 
Pages: 1017-1024 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110061965 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061965 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1017-1024




Template-Type: ReDIF-Article 1.0
Author-Name: A. J. Abbott 
Author-X-Name-First: A. J. 
Author-X-Name-Last: Abbott 
Author-Name: G. De Vita 
Author-X-Name-First: G. 
Author-X-Name-Last: De Vita 
Title: Long-run price and income elasticities of demand for Hong Kong exports: a structural cointegrating VAR approach 
Abstract:
  This article revisits a system of export volume and price equations to
 estimate the long-run price and income effects in the demand for Hong
 Kong's exports. Using a recently developed restricted cointegrating VAR
 approach it tests theorybased restrictions and obtains estimates of the
 long-run structural coefficients. The estimation results provide
 supporting evidence for the theory-based restrictions and suggest that the
 demand for Hong Kong's exports is both price and income elastic. This
 article is therefore able to present a long-run model of Hong Kong's
 exports that is both theory and data consistent, and long-run elasticities
 that are economically interpretable. The short-run properties of the model
 are illustrated by means of persistence profiles, which confirm the
 cointegrating vectors tendency of convergence. 
Journal: Applied Economics 
Pages: 1025-1032 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110514 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110514 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1025-1032




Template-Type: ReDIF-Article 1.0
Author-Name: John Cotsomitis 
Author-X-Name-First: John 
Author-X-Name-Last: Cotsomitis 
Author-Name: Andy Kwan 
Author-X-Name-First: Andy 
Author-X-Name-Last: Kwan 
Author-Name: Chris DeBresson 
Author-X-Name-First: Chris 
Author-X-Name-Last: DeBresson 
Author-Name: Thierry Weissenburger 
Author-X-Name-First: Thierry 
Author-X-Name-Last: Weissenburger 
Title: Are there technological gains from the liberalization of exchange? 
Abstract:
  This article investigates the impact of openness and tariff reductions on
 the technical inventiveness of selected OECD countries. The results
 suggest that even these simple forms of trade liberalization may, under
 certain conditions, favour technical inventiveness or creativity, the most
 advanced form of technological gain. It is therefore likely that other,
 more directly relevant kinds of liberalization of exchange, will have some
 positive effects on less extreme forms of acquisition of technical
 knowledge. The diversity in outcomes across the range of countries
 surveyed points to the need to specify the conditions under which these
 dynamic technological gains can be reaped and serve as a rationale for
 international trade policy. 
Journal: Applied Economics 
Pages: 1033-1040 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110061983 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061983 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1033-1040




Template-Type: ReDIF-Article 1.0
Author-Name: Derek Leslie 
Author-X-Name-First: Derek 
Author-X-Name-Last: Leslie 
Author-Name: Joanne Lindley 
Author-X-Name-First: Joanne 
Author-X-Name-Last: Lindley 
Author-Name: Leighton Thomas 
Author-X-Name-First: Leighton 
Author-X-Name-Last: Thomas 
Title: Who did worse? a comparison of US and British non-white unemployment 1970-1998 
Abstract:
  US and British unemployment rates for non-white males and females are
 compared over the period 1970-1998. Whereas US rates remained fairly
 steady, there was a marked increase in British non-white unemployment
 rates. The reasons for this poor performance, relative to the good
 performance of US non-whites are explored. It is shown that non-white
 unemployment behaves in different ways across the two countries. For
 example, British rates rise faster in a recession than white rates,
 whereas US rates appear not to follow this British hypercyclical pattern. 
Journal: Applied Economics 
Pages: 1041-1053 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/0003684011006192 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684011006192 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1041-1053




Template-Type: ReDIF-Article 1.0
Author-Name: Sajal Ghosh 
Author-X-Name-First: Sajal 
Author-X-Name-Last: Ghosh 
Author-Name: Anjana Das 
Author-X-Name-First: Anjana 
Author-X-Name-Last: Das 
Title: Short-run electricity demand forecasts in Maharashtra 
Abstract:
  This paper, has tried to forecast monthly maximum electricity demand for
 the state Maharashtra, India, using Multiplicative Seasonal Autoregressive
 Integrated Moving Average (MSARIMA) method for seasonally unadjusted
 monthly data spanning from April 1980 to June 1999. The forecasted period
 is 18 months ahead from June 1999. This study's basic findings are that
 the series does not reveal any drastic change for the forecasted period.
 It continues to follow the same trend along with the seasonal variation. 
Journal: Applied Economics 
Pages: 1055-1059 
Issue: 8 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110064656 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110064656 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1055-1059




Template-Type: ReDIF-Article 1.0
Author-Name: Chandana Chakraborty 
Author-X-Name-First: Chandana 
Author-X-Name-Last: Chakraborty 
Author-Name: Parantap Basu 
Author-X-Name-First: Parantap 
Author-X-Name-Last: Basu 
Title: Foreign direct investment and growth in India: a cointegration approach 
Abstract:
  The two-way link between foreign direct investment and growth for India
 is explored using a structural cointegration model with vector error
 correction mechanism. The existence of two cointegrating vectors between
 GDP, FDI, the unit labour cost and the share of import duty in tax revenue
 is found, which captures the long run relationship between FDI and GDP. A
 parsimonious vector error correction model (VECM) is then estimated to
 find the short run dynamics of FDI and growth. Our VECM model reveals
 three important features: (a) GDP in India is not Granger caused by FDI;
 the causality runs more from GDP to FDI; (b) trade liberalization policy
 of the Indian government had some positive short run impact on the FDI
 flow; and (c) FDI tends to lower the unit labour cost suggesting that FDI
 in India is labour displacing. 
Journal: Applied Economics 
Pages: 1061-1073 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110074079 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074079 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1061-1073




Template-Type: ReDIF-Article 1.0
Author-Name: Brian Gould 
Author-X-Name-First: Brian 
Author-X-Name-Last: Gould 
Author-Name: Hector Villarreal 
Author-X-Name-First: Hector 
Author-X-Name-Last: Villarreal 
Title: Adult equivalence scales and food expenditures: an application to Mexican beef and pork purchases 
Abstract:
  In the analysis of food expenditures, the use of a simple count of
 household members as an estimate of household size implicitly assumes each
 household member has the same marginal impact. In this analysis of Mexican
 food expenditures, endogenously determined adult equivalence scales are
 estimated in such a way that these marginal impacts are allowed to vary by
 household member age and gender. The results of a series of hypothesis
 tests indicate a rejection of the implied null hypothesis of equal
 marginal expenditure impacts associated with the use of the traditional
 count based household size variable. This study also rejects the null
 hypothesis of the equality of adult equivalent scales across the
 commodities included in this analysis. 
Journal: Applied Economics 
Pages: 1075-1088 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110074141 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1075-1088




Template-Type: ReDIF-Article 1.0
Author-Name: H. Ahmed 
Author-X-Name-First: H. 
Author-X-Name-Last: Ahmed 
Author-Name: S. M. Miller 
Author-X-Name-First: S. M. 
Author-X-Name-Last: Miller 
Title: The level of development and the determinants of productivity growth: a cross-country analysis 
Abstract:
  This article examines the effects of technology on productivity growth by
 disaggregating total output into sectoral components, exploring the roles
 of investment and technology on productivity growth for countries in
 different income groups. It finds that for low-income countries,
 investment is the most important determinant of productivity growth. While
 investment plays an important role in determining productivity growth in
 middle-income countries, additional effects resulting from technological
 change also emerge. Investment ceases to have a significant effect on
 productivity growth in high-income countries. 
Journal: Applied Economics 
Pages: 1089-1095 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110092718 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110092718 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1089-1095




Template-Type: ReDIF-Article 1.0
Author-Name: J. C. Glass 
Author-X-Name-First: J. C. 
Author-X-Name-Last: Glass 
Author-Name: D. G. McKillop 
Author-X-Name-First: D. G. 
Author-X-Name-Last: McKillop 
Author-Name: G. O'Rourke 
Author-X-Name-First: G. 
Author-X-Name-Last: O'Rourke 
Title: Evaluating the productive performance of UK universities as cost-constrained revenue maximizers: an empirical analysis 
Abstract:
  The study presents an empirical analysis of the relative revenue
 efficiency of UK universities in providing teaching and research. With
 government policies pressurizing the largely public-funded universities to
 secure efficiency in both input usage and output revenue, university
 producers are modelled as cost-constrained revenue maximizers. Taking
 explicit account of the quality of research output, the methodology uses
 linear programming techniques to construct nonparametric cost indirect
 production frontiers and to compute revenue efficiency relative to these
 frontiers. Revenue efficiency is then decomposed into its (output)
 allocative and technical components. Further analysis investigates the
 sources of allocative and technical inefficiencies. 
Journal: Applied Economics 
Pages: 1097-1108 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110088119 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110088119 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1097-1108




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Street 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Street 
Author-Name: Rowena Jacobs 
Author-X-Name-First: Rowena 
Author-X-Name-Last: Jacobs 
Title: Relative performance evaluation of the English acute hospital sector 
Abstract:
  Relative performance evaluation has been suggested as a means to overcome
 information asymmetry between regulators and organizations when assessing
 efficiency. By comparing similar organizations the relationship between
 costs and effort can be better isolated. The English Department of Health
 (DoH) has undertaken relative performance evaluation in comparing the unit
 costs of acute hospitals using ordinary least squares (OLS) methods. After
 adjusting for exogenous influences in costs, residual unexplained cost
 differences are deemed to represent inefficiency. This paper questions the
 official interpretation of the OLS residuals. The OLS model is
 re-estimated to calculate confidence intervals around the residuals and as
 a stochastic cost frontier (SCF). It is concluded that English acute
 hospitals exhibit less in efficiency than is implied by official
 estimates. 
Journal: Applied Economics 
Pages: 1109-1119 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110088100 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110088100 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1109-1119




Template-Type: ReDIF-Article 1.0
Author-Name: Lori Leachman 
Author-X-Name-First: Lori 
Author-X-Name-Last: Leachman 
Author-Name: Bill Francis 
Author-X-Name-First: Bill 
Author-X-Name-Last: Francis 
Title: Twin Deficits: Apparition or Reality? 
Abstract:
  This paper uses cointegration and multicointegration analysis to explore
 the issue of twin deficits for the USA in the post-World War II period.
 The results suggest that prior to 1974 the systems of fiscal and foreign
 sector variables exhibit multicointegration. These results do not rule out
 short-run correlations between government deficits and external deficits.
 However, they do preclude the possibility that the twin deficit phenomenon
 describes a long-run structural relationship in the post-World War II,
 Bretton Woods era. In the more recent period, 1974 forward, neither system
 exhibits evidence of multi/cointegration. But, weak evidence of
 cointegration is present between fiscal deficits and trade deficits. Error
 correction models suggest that causality runs from internal to external
 deficits in the dynamic adjustment process. This evidence provides some
 support for the notion that more recently fiscal deficits may have
 contributed to external deficits. In combination with the results from the
 early sub-period, the evidence indicates that to the extent the twin
 deficit relationship exists, it is time specific and weak. 
Journal: Applied Economics 
Pages: 1121-1132 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110069976 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110069976 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1121-1132




Template-Type: ReDIF-Article 1.0
Author-Name: Jati Sengupta 
Author-X-Name-First: Jati 
Author-X-Name-Last: Sengupta 
Title: Economics of efficiency measurement by the DEA approach 
Abstract:
  Three aspects of efficiency measurement by data envelopment analysis are
 discussed here analytically. These aspects comprise output-specific input
 allocations by each firm, flexibility in the production process and the
 role of learning by doing in efficiency improvement. 
Journal: Applied Economics 
Pages: 1133-1139 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110072305 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110072305 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1133-1139




Template-Type: ReDIF-Article 1.0
Author-Name: Charalambos Pattichis 
Author-X-Name-First: Charalambos 
Author-X-Name-Last: Pattichis 
Title: Mean reversion in target zones: a re-examination of some ERM exchange rates 
Abstract:
  The theoretical literature on exchange rate behaviour in target zones
 predicts that the exchange rate would be mean reverting. This article
 empirically investigates this theoretical prediction in the case of the
 German mark bilateral exchange rates. Using a recently developed unit root
 test, this article provides evidence that is generally negative to the
 idea of mean reversion. It shows that all bilateral exchange rates under
 investigation appear to be unit root processes with the exception of the
 Dutch guilder/German mark rate. 
Journal: Applied Economics 
Pages: 1141-1145 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110074114 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074114 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1141-1145




Template-Type: ReDIF-Article 1.0
Author-Name: Noor Ghazali 
Author-X-Name-First: Noor 
Author-X-Name-Last: Ghazali 
Author-Name: Soo-Wah Low 
Author-X-Name-First: Soo-Wah 
Author-X-Name-Last: Low 
Title: The expectation hypothesis in emerging financial markets: the case of Malaysia 
Abstract:
  This article deals with the expectation hypothesis of the term structure
 of interest rates. It is argued that the rapid progress and financial
 market liberalization that is occurring in emerging financial markets
 could provide additional evidence for testing the expectation hypothesis.
 This article employs data from the Malaysian government securities market
 which represents one of the examples of an emerging financial market.
 Cointegration and error correction analyses show significant empirical
 validity for the expectation hypothesis. The long- and short-term interest
 rates are shown to be cointegrated and subject to a long-run equilibrium
 path. In addition to shedding some light on the experience of emerging
 financial market, this article explicitly identifies the process of
 adjustment towards the long run equilibrium. For the long-run, the results
 are in favour of the long-to-short version of expectation hypothesis with
 longer-term interest rates playing a greater role as equilibrium
 attractor. However, in the short run causal impact runs from short- to
 long-term interest rates. The empirical findings of the article generally
 support the proposition of expectation hypothesis. 
Journal: Applied Economics 
Pages: 1147-1156 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110074123 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074123 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1147-1156




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Title: An econometric test of Wagner's law for six countries based on cointegration and error-correction modelling techniques 
Abstract:
  The present study empirically examined five different versions of
 Wagner's law by employing annual time-series data on six countries over
 the period 1951-1996. Three countries are part of the emerging
 industrialized countries of Asia (South Korea, Taiwan, Thailand) and three
 are industrialized countries (Japan, USA, and the United Kingdom). The
 analysis is an advance over previous work in two ways: first, the
 stationarity propertities of the data and the order of integration of the
 data are empirically investigated using the Augmented Dickey-Fuller (ADF)
 and the Kwiatkowski et al. (Journal of Econometrics, 1, 1992) (KPSS),
 tests and second, the hypothesis of a long-run relationship between income
 and government spending is tested using bivariate cointegrated systems and
 employing the methodology of cointegration analysis as suggested by
 Johansen (Journal of Economic Dynamics and Control, 12, 1988) and Johansen
 and Juselius (Oxford Bulletin of Economics and Statistics, 52, 1990). The
 results indicate that there exist a long-run relationship between income
 and government spending for sample countries studied with the exception of
 Thailand. Furthermore, it is found that the results concerning the
 validity of Wagner's Law are also held for selected countries studied with
 the exception of Thailand. 
Journal: Applied Economics 
Pages: 1157-1169 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110074132 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074132 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1157-1169




Template-Type: ReDIF-Article 1.0
Author-Name: George Baltas 
Author-X-Name-First: George 
Author-X-Name-Last: Baltas 
Title: An applied analysis of brand demand structure 
Abstract:
  The demand literature is concerned with the optimal allocation of
 expenditure at varied but usually high levels of commodity aggregation.
 Much less aggregation however is required for business applications. In
 applied business settings, interest centres upon the different brands of
 the same commodity because policy formulation takes place at the level of
 the individual brand. This paper considers application of formal demand
 analysis to brand demand data. A theoretically plausible demand system is
 invoked to describe inter-brand allocation of expenditure, test
 restrictions imposed by economic theory and yield empirically determined
 insights into brand demand structure. 
Journal: Applied Economics 
Pages: 1171-1175 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110085996 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110085996 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1171-1175




Template-Type: ReDIF-Article 1.0
Author-Name: Julian Alston 
Author-X-Name-First: Julian 
Author-X-Name-Last: Alston 
Author-Name: James Chalfant 
Author-X-Name-First: James 
Author-X-Name-Last: Chalfant 
Author-Name: Nicholas Piggott 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Piggott 
Title: Estimating and testing the compensated double-log demand model 
Abstract:
  In spite of the proliferation of flexible functional forms for consumer
 demand systems, the double-log demand model continues to be popular,
 especially in applied work calling for single-equation models. It is
 usually estimated in uncompensated form. It can also be estimated in
 compensated form, by deflating the income variable alone using Stone's
 price index. The compensated form has the same right-hand side as a
 single-equation version of the popular linear approximation to the Almost
 Ideal demand model, facilitating the construction of a test for choosing
 between the two alternatives. This paper demonstrates these results,
 develops the specification test, and illustrates its application using US
 meat consumption data. Simulations suggest that the test is well-behaved
 with good power in typical applications. 
Journal: Applied Economics 
Pages: 1177-1186 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110086003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110086003 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1177-1186




Template-Type: ReDIF-Article 1.0
Author-Name: A. F. Al-Faris 
Author-X-Name-First: A. F. 
Author-X-Name-Last: Al-Faris 
Title: Public expenditure and economic growth in the Gulf Cooperation Council countries 
Abstract:
  This article uses a dynamic model calibrated to the Gulf Cooperation
 Council (GCC) countries' data to examine the nature of the relationship
 between government expenditure and economic growth. The article finds that
 national income is a predictive factor of the expanding role of government
 as postulated by Wagner. Empirical investigations do not support the
 hypothesis of public expenditure causing national income as proposed by
 the Keynesian theory. 
Journal: Applied Economics 
Pages: 1187-1193 
Issue: 9 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110090206 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110090206 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1187-1193




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Cook 
Author-X-Name-First: Paul 
Author-X-Name-Last: Cook 
Author-Name: Yuichiro Uchida 
Author-X-Name-First: Yuichiro 
Author-X-Name-Last: Uchida 
Title: Productivity growth in east Asia: a reappraisal 
Abstract:
  In recent years there has been considerable disagreement over the extent
 to which productivity growth has accounted for the success of the east
 Asian economies. Empirical evidence, based on forms of growth accounting
 or direct estimation of a production function, is inconclusive so that the
 debate appears to be at a stalemate. This article applies an alternative
 approach, using the Malmquist productivity indices, to investigate the
 contribution of productivity to the longer term growth. The results
 support the view that over the longer term, the east Asian economies were
 input driven but interesting differences arise between countries when
 shorter periods are analysed. 
Journal: Applied Economics 
Pages: 1195-1207 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110095778 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1195-1207




Template-Type: ReDIF-Article 1.0
Author-Name: M. Bahmani-Oskooee 
Author-X-Name-First: M. 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: F. Brown 
Author-X-Name-First: F. 
Author-X-Name-Last: Brown 
Title: Demand for international reserves: a review article 
Abstract:
Journal: Applied Economics 
Pages: 1209-1226 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110096129 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096129 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1209-1226




Template-Type: ReDIF-Article 1.0
Author-Name: N. Blasco 
Author-X-Name-First: N. 
Author-X-Name-Last: Blasco 
Author-Name: P. Corredor 
Author-X-Name-First: P. 
Author-X-Name-Last: Corredor 
Author-Name: R. Santamaria 
Author-X-Name-First: R. 
Author-X-Name-Last: Santamaria 
Title: Is bad news cause of asymmetric volatility response? A note 
Abstract:
  This article uses a direct test of the impact of economic news on stock
 volatility. The main interest is to test whether the asymmetric response
 of volatility can be due to the effect of bad news. To do this, this study
 takes items of news into account as exogenous variables. The analysis is
 divided into two stages, each of which uses different items of news as
 exogenous variables additional to the information provided by the
 residuals. The first stage uses more exhaustively classified information
 whereas the second considers daily information as a global sign. This
 study finds that bad news is responsible for most of the observed
 asymmetric behaviour of variance. Further, this study detects that the GJR
 model adequately captures the impact of bad news when traders are not
 ready to carry out a time-consuming analysis of the information. 
Journal: Applied Economics 
Pages: 1227-1231 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110095436 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095436 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1227-1231




Template-Type: ReDIF-Article 1.0
Author-Name: Yuzo Honda 
Author-X-Name-First: Yuzo 
Author-X-Name-Last: Honda 
Title: The effects of the Basle accord on bank credit: the case of Japan 
Abstract:
  This paper has documented the empirical evidence that the Basle Accord
 had significant effects on bank credit in Japan. The Accord reduced the
 ratio of the credit increase to the total asset by 0.09-0.24% for banks
 with the international standard, and by 0.06-0.21% for those with the
 domestic standard, respectively. According to the Fixed Effects Model
 estimates, the impacts of the regulation are in between 0.12% and 0.13%
 for those banks with the international standard. These estimates are
 smaller than the corresponding estimate with aggregate time series data,
 0.40%. 
Journal: Applied Economics 
Pages: 1233-1239 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110094455 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110094455 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1233-1239




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Kyereme 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Kyereme 
Title: Determinants of United States' trade balance with Australia 
Abstract:
  This study explores the determinants of the USA's trade balance (NE) with
 Australia, and tests for long-run relationships. Regression results
 suggest the most important determinant of NE is the price ratio (USA
 relative to Australia), followed by the lending rate ratio, GDP ratio,
 money supply ratio, and the real exchange rate, which together explain 93%
 of the variation in NE. F-tests suggest NE responds to rising and falling
 exchange rate regimes symmetrically. Johansen's cointegration test
 suggests a significant (at 1%) long run relationship between NE and its
 determinants. Based on Engle-Granger, import share (IS) and output growth
 (Q) are cointegrated at 10% if Q shocks precede IS shocks, suggesting a
 weak long run relationship between them. There is a positive long run
 relationship between NE and the exchange rate (ER) at 5%, if ER shocks
 precede NE shocks. Results based on the error correction model suggest a
 positive relationship between expected ER and NE, and reinforce the
 cointegration results. The estimated NE regression model may be used to
 monitor and predict NE, given relevant values (predicted or predetermined)
 of its determinants. 
Journal: Applied Economics 
Pages: 1241-1250 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/0003684011-0094437 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684011-0094437 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1241-1250




Template-Type: ReDIF-Article 1.0
Author-Name: Mukhtar Ali 
Author-X-Name-First: Mukhtar 
Author-X-Name-Last: Ali 
Author-Name: Richard Thalheimer 
Author-X-Name-First: Richard 
Author-X-Name-Last: Thalheimer 
Title: Product choice for a firm selling related products: A parimutuel application 
Abstract:
  This paper provides a framework for analysis of product choice by a
 multiproduct firm selling several products whose demands are interrelated.
 The decision making process of a racetrack-racebook regarding the
 parimutuel wagering products (both number and which ones) it should supply
 is illustrated. A racetrack-racebook is a business entity, which offers
 its patrons the opportunity to wager, not only on live horse racing
 conducted at the racetrack but also on races simulcast to that racetrack
 from a variety of racetracks, from both in-state and out-of-state
 locations. The demands for these wagering products are interrelated and
 these interrelationships play a key role in determining the number (and
 which ones) of these wagering opportunities that will be supplied. Based
 on the experience of a specific racetrack-racebook, these demand functions
 are estimated econometrically and the role of these interrelated demands
 in the supply decision is explored. An algorithm is developed to search
 over all possible product portfolios to determine that combination of
 products yielding the highest sales, revenue, or profit. 
Journal: Applied Economics 
Pages: 1251-1271 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110094428 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110094428 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1251-1271




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Moss 
Author-X-Name-First: Charles 
Author-X-Name-Last: Moss 
Author-Name: Andrew Schmits 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Schmits 
Title: Price behaviour in the US sweetener market: a cointegration approach 
Abstract:
  The sweetener market in the United States is complicated because of the
 substitution possibilities between high fructose corn syrup (HFCS) and
 sugar. This study focuses on the relationship between raw sugar prices and
 the prices for high fructose corn syrup. Sugar and HFCS are imperfect
 substitutes for several industrial uses. Sugar can be used for all
 industrial uses, but HFCS has limited uses. This study uses cointegration
 analysis to examine the relationship between sugar and HFCS prices as well
 as the relationship between raw and refined sugar prices over time. The
 results indicate that sugar and HFCS prices move together for the
 1983-1996 period. However, after this time period HFCS prices no longer
 follow sugar prices. 
Journal: Applied Economics 
Pages: 1273-1281 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110088128 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110088128 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1273-1281




Template-Type: ReDIF-Article 1.0
Author-Name: V. Vandenberghe 
Author-X-Name-First: V. 
Author-X-Name-Last: Vandenberghe 
Title: Evaluating the magnitude and the stakes of peer effects analysing science and math achievement across OECD 
Abstract:
  What follows is an exercise aimed at estimating peer effects' impact on
 science and math test scores of secondary school students surveyed in 1995
 by the International Education Agency across OECD countries. It is also to
 discuss their importance for educational policy, particularly regarding
 the highly sensitive issue of ability-grouping. Using this unique
 international database. This study assesses the magnitude of the peer
 effect relative to more traditional inputs. Referring to education policy
 stakes, we control for the presence of increasing or decreasing return.
 This study also checks for cross effects in order to determine whether
 peer effects matter more to low or high SES pupils, and whether their
 final impact on achievement is affected by the underlying level of
 heterogeneity within the group. Using a methodology, which a priori
 accounts for the clustering of the data within countries and
 schools/classrooms - i.e. fixed/random effect or hierarchical model - our
 analysis indicates that peer effects are strong determinants of both math
 and science achievement relative to individual SES and other school
 inputs. The presence of increasing of decreasing returns is not obvious.
 But we find systematic evidence that low-ability pupils are more sensitive
 to peer group characteristics. By contrast, this study also find that -
 for a given level of the peer effect - higher heterogeneity comes at a
 certain cost. In brief, these results provide no systematic evidence
 regarding grouping policies. 
Journal: Applied Economics 
Pages: 1283-1290 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110094446 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110094446 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1283-1290




Template-Type: ReDIF-Article 1.0
Author-Name: W. D. Bradford 
Author-X-Name-First: W. D. 
Author-X-Name-Last: Bradford 
Author-Name: A. N. Kleit 
Author-X-Name-First: A. N. 
Author-X-Name-Last: Kleit 
Author-Name: M. A. Krousel-Wood 
Author-X-Name-First: M. A. 
Author-X-Name-Last: Krousel-Wood 
Author-Name: R. N. Re 
Author-X-Name-First: R. N. 
Author-X-Name-Last: Re 
Title: A two-part model of treatment for benign prostatic hyperplasia and the impact of innovation 
Abstract:
  Benign prostatic hyperplasia (BPHs) affects more than half of men who are
 at least 60 years old. Transurethral resection of the prostate (TURP) is
 the most common treatment. This article estimates the average costs of
 providing a TURP to a patient that chooses the procedure and the expected
 cost of a TURP irrespective of the actual treatment decision. It utilizes
 a modified two-part model. It first estimates the likelihood of receiving
 the TURP given a BPH diagnosis using a logit regression. The second step
 is to estimate the (log of) TURP cost for the population that actually
 received the procedure. For the TURP decision, data were extracted from
 the National Health Interview Survey (NHIS) 1986-1994 on 502 men with a
 diagnosis of BPH. For the cost model, HCIA discharge abstract data were
 used from five states on 26640 men who actually received a TURP in 1994.
 TURP was identified via CPT codes in the NHIS data. The cost of TURP was
 constructed using patient hospital charges and hospital-specific cost to
 charge ratios. It was found that patient characteristics and comorbidities
 are important determinants of the decision to receive, and costs of, TURP.
 Pharmacological alternatives to TURP significantly affect the likelihood
 that a person will choose the procedure. The predicted unconditional cost
 of TURP ranged from US$8908 to US$3832 (by state); the predicted
 conditional cost of TURP ranged from US$1163 to US$750. The results
 suggest that the cost associated with providing a TURP for the average man
 with BPH would be US$492 to US$1163, depending on the state of residence.
 It was found that estimating the costs using simple regression or ANOVA
 techniques will lead to biased results due to sample selection (which in
 this case range from US$3832 to US$8908). 
Journal: Applied Economics 
Pages: 1291-1299 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110095409 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095409 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1291-1299




Template-Type: ReDIF-Article 1.0
Author-Name: C. E. Dismuke 
Author-X-Name-First: C. E. 
Author-X-Name-Last: Dismuke 
Author-Name: P. Guimaraes 
Author-X-Name-First: P. 
Author-X-Name-Last: Guimaraes 
Title: Has the caveat of case-mix based payment influenced the quality of inpatient hospital care in Portugal? 
Abstract:
  Portugal was the first country with a national health system to
 incorporate diagnosis related group (DRG) case-mix adjustment in
 formulating hospital budgets on a nation-wide basis. Most of the case-mix
 payment-outcomes literature comes from the USA where the quality of data
 is superior to that of many other countries. The purpose of this article
 is to assess the initial impact of case-mix financing on the quality of
 inpatient care in Portuguese hospitals using a methodology that may be
 appropriate for health care systems whose information is not as complete
 as that of the USA. Estimating a count data model at the hospital level
 with inpatient mortality as a quality indicator, the authors find no
 evidence that case-mix based payment has had adverse consequences on
 inpatient mortality for the most frequent non-obstetric DRG during the
 three year time period under study. 
Journal: Applied Economics 
Pages: 1301-1307 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110095418 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095418 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1301-1307




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Gandar 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Gandar 
Author-Name: Richard Zuber 
Author-X-Name-First: Richard 
Author-X-Name-Last: Zuber 
Author-Name: R. S. Johnson 
Author-X-Name-First: R. S. 
Author-X-Name-Last: Johnson 
Author-Name: W. Dare 
Author-X-Name-First: W. 
Author-X-Name-Last: Dare 
Title: Re-examining the betting market on Major League Baseball games: is there a reverse favourite-longshot bias? 
Abstract:
  A recent study of the fixed-odds betting market on baseball games, while
 finding that the betting market is generally efficient, also found
 evidence of an underbetting on underdog teams. This article examines the
 evidence for this new anomaly. It corrects Woodland and Woodland's
 estimates of the commission, subjective win probabilities and test
 statistics. The efficiency null hypothesis cannot be rejected for all of
 their tests when revised test statistics are calculated for their sample
 period (however, like them, it was found that slight underdogs are
 underbet). It is also shown that their bias is not simply a bias involving
 favourites and underdogs. Whether underdogs are playing at home or away
 also seems to matter in their sample period. As well a positive
 relationship between returns and subjective probabilities was found for
 underdogs and favourites, a relationship suggestive of a
 favourite-longshot bias rather than its reverse. It is concluded that
 there is insufficient evidence to claim that this bias is a 'true market
 inefficiency'. 
Journal: Applied Economics 
Pages: 1309-1317 
Issue: 10 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110095427 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095427 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1309-1317




Template-Type: ReDIF-Article 1.0
Author-Name: G. MacDonald 
Author-X-Name-First: G. 
Author-X-Name-Last: MacDonald 
Author-Name: D. Allen 
Author-X-Name-First: D. 
Author-X-Name-Last: Allen 
Author-Name: S. Cruickshank 
Author-X-Name-First: S. 
Author-X-Name-Last: Cruickshank 
Title: Purchasing Power Parity-evidence from a new panel test 
Abstract:
  This paper uses a recently suggested test for unit roots in panels of
 time series data (Maddala and Wu, Oxford Bulletin of Economics and
 Statistics, 61, 631-52, 1999) to consider the Purchasing Power Parity
 hypothesis. The major innovation of this test is that it allows both the
 testing of unit root null, using the ADF test, and the stationarity null,
 using the KPSS test. It is found that the results are inconsistent,
 suggesting that either alternative hypotheses to a unit root may need to
 be considered or that panel based testing in this particular context may
 be of limited value. 
Journal: Applied Economics 
Pages: 1319-1324 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110103760 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110103760 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1319-1324




Template-Type: ReDIF-Article 1.0
Author-Name: Henry Saffer 
Author-X-Name-First: Henry 
Author-X-Name-Last: Saffer 
Author-Name: Dhaval Dave 
Author-X-Name-First: Dhaval 
Author-X-Name-Last: Dave 
Title: Alcohol consumption and alcohol advertising bans 
Abstract:
  The purpose of this paper is to empirically examine the relationship
 between alcohol advertising bans and alcohol consumption. Most prior
 studies have found no effect of advertising on total alcohol consumption.
 A simple economic model is provided which explains these prior results.
 The data set used in this study is a pooled time series of data from 20
 countries over 26 years. The empirical model is a simultaneous equations
 system which treats both alcohol consumption and alcohol advertising bans
 as endogenous. The primary conclusions of this study are that alcohol
 advertising bans decrease alcohol consumption and that alcohol consumption
 has a positive effect on the legislation of advertising bans. The results
 indicate that an increase of one ban could reduce alcohol consumption by
 5% to 8%. The alcohol price elasticity is estimated at about 0.2. The
 results suggest that recent exogenous decreases in alcohol consumption
 will decrease the probability of enactment of new bans and undermine the
 continuance of existing bans. Canada, Denmark, New Zealand and Finland
 have recently rescinded alcohol advertising bans. Alcohol consumption in
 these countries may increase or decrease at a slower rate than would have
 occurred had advertising bans remained in place. 
Journal: Applied Economics 
Pages: 1325-1334 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110102743 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110102743 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1325-1334




Template-Type: ReDIF-Article 1.0
Author-Name: Aliza Fleischer 
Author-X-Name-First: Aliza 
Author-X-Name-Last: Fleischer 
Author-Name: Steven Buccola 
Author-X-Name-First: Steven 
Author-X-Name-Last: Buccola 
Title: War, terror, and the tourism market in Israel 
Abstract:
  A supply and demand model of the Israeli hotel industry is developed,
 distinguishing between its domestic and foreign sectors. Model simulations
 are employed to examine the impacts of war and terrorist incidents on
 tourist activity and hotel revenues. Foreign demand for Israeli hotel
 stays is highly price-elastic and income-inelastic, and moderately
 sensitive to terrorist events. Domestic demand is price-inelastic,
 income-elastic, and terror-insensitive. In the wake of terror attacks,
 hotels' supply or minimum prices to Israeli tourists shift downward,
 reducing local market prices and encouraging more local tourism. However,
 the magnitude of these shifts is minor, and the local market thus provides
 little buffer for dropoffs in foreign tourism. By permitting excess
 capacity in such fashion, hotels respond rationally to the price
 inelasticity of local demand. 
Journal: Applied Economics 
Pages: 1335-1343 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110099252 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099252 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1335-1343




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Rezitis 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Rezitis 
Author-Name: Kostas Tsiboukas 
Author-X-Name-First: Kostas 
Author-X-Name-Last: Tsiboukas 
Author-Name: Stauros Tsoukalas 
Author-X-Name-First: Stauros 
Author-X-Name-Last: Tsoukalas 
Title: Measuring technical efficiency in the Greek agricultural sector 
Abstract:
  This paper measures the degree of technical efficiency of Greek farms at
 discrete points in time. Stochastic frontier production functions are
 estimated from four annual Farm Accountancy Data Network (FADN) surveys of
 the 1992-1995 period. From the results, a measure of technical efficiency
 is calculated for each farm for each year. The four distributions of
 technical efficiency values are examined and compared. All four samples
 show a wide range of farm-specific technical efficiency but efficiency is
 improving over the period. The paper also presents frontier estimates for
 small and large farms classified according to economic size. In that case,
 technical efficiency measures are calculated and their distributions are
 examined and compared. The results show that large farms are more
 efficient than small farms. However, efficiency is improving in both size
 farms over the period. In general, the results of this study indicate that
 there is substantial scope for improving technical efficiency of Greek
 farms. 
Journal: Applied Economics 
Pages: 1345-1357 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110099261 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099261 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1345-1357




Template-Type: ReDIF-Article 1.0
Author-Name: E. Gundlach 
Author-X-Name-First: E. 
Author-X-Name-Last: Gundlach 
Author-Name: D. Rudman 
Author-X-Name-First: D. 
Author-X-Name-Last: Rudman 
Author-Name: L. Wossmann 
Author-X-Name-First: L. 
Author-X-Name-Last: Wossmann 
Title: Second thoughts on development accounting 
Abstract:
  The relative roles of factor inputs and productivity are estimated in
 explaining the level of economic development. For a large sample of
 countries, it is shown that international differences in factor inputs
 account for between two thirds and three quarters of international
 differences in output per worker if alternative identifying productivity
 assumptions and a quality-adjusted measure of human capital are employed.
 For a sample of OECD countries, it is found that all differences in output
 per worker can be attributed to differences in factor inputs, leaving no
 role for international productivity differences. This result supports the
 reasoning of a traditional neoclassical growth model. 
Journal: Applied Economics 
Pages: 1359-1369 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110096327 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096327 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1359-1369




Template-Type: ReDIF-Article 1.0
Author-Name: Karl Taylor 
Author-X-Name-First: Karl 
Author-X-Name-Last: Taylor 
Title: The impact of technology and trade upon the returns to education and occupation 
Abstract:
  This paper considers how technological change and globalization has
 influenced the return to education and occupation in Great Britain over
 the period 1973 to 1994. A number of papers in the literature have
 documented increasing demand for individuals who possess higher skill
 endowments than their peers. Both education and occupation can be
 interpreted as an individual's observable skills and how technology and
 trade have actually influenced returns to different educational and
 occupational levels is something that has not been investigated in Great
 Britain. For the empirical analysis estimates are based upon pooled cross
 sections over time and also pseudo panel techniques to control for
 unobservable heterogeneity. 
Journal: Applied Economics 
Pages: 1371-1377 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110096336 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096336 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1371-1377




Template-Type: ReDIF-Article 1.0
Author-Name: F. Voulgaris 
Author-X-Name-First: F. 
Author-X-Name-Last: Voulgaris 
Author-Name: D. Asteriou 
Author-X-Name-First: D. 
Author-X-Name-Last: Asteriou 
Author-Name: G. Agiomirgianakis 
Author-X-Name-First: G. 
Author-X-Name-Last: Agiomirgianakis 
Title: Capital structure, asset utilization, profitability and growth in the Greek manufacturing sector 
Abstract:
  Greece's accession to the European Union (EU) has affected its economy
 and its manufacturing sector. Large-size enterprises (LSEs) form a small
 but vital part of Greek manufacturing and constitute a major component of
 the country's stock market. According to finance theory, the capital
 structure of a firm affects its capital cost and market value. This paper,
 by using dynamic panel data techniques, investigates the determinants of
 capital structure of LSEs in the Greek manufacturing sector. The findings
 suggest that asset utilization, gross and net profitability and total
 assets growth have a significant effect on the capital structure of LSEs.
 This has straightforward policy implications. Following recent economic
 developments, Greek firms are exposed to a stronger competition in the EU
 and global markets, but also to new opportunities. In order to improve
 their capital structure, Greek manufacturing LSEs need to achieve higher
 asset utilization and profit margins through economies of scale attained
 mainly by higher exports. Moreover, governmental measures aiming to
 support LSEs' efforts should focus their impact on alleviating taxation,
 reducing bureaucratic burdens, minimizing market imperfections and
 subsidizing applications of new technology. 
Journal: Applied Economics 
Pages: 1379-1388 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110096822 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096822 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1379-1388




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Vazquez 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Vazquez 
Title: Does the Lucas critique apply during hyperinflation?: empirical evidence from four hyperinflationary episodes 
Abstract:
  Farmer (Review of Economic Studies, 58, 321-32, 1991) suggests that in a
 model in which there are multiple rational expectations equilibria agents
 may find it useful to coordinate their expectations in a unique rational
 expectations equilibrium which is supported by a self-fulfilling forecast
 rule having the property of being immune to the Lucas Critique. In this
 paper, Farmer's hypothesis is tested using data from hyperinflationary
 episodes. It is believed that those episodes are suitable for testing this
 hypothesis because an agent who lives in a hyperinflationary environment
 usually faces frequent changes in policy regime. The agent may thus choose
 a selffulfilling forecast rule which is immune to the Lucas Critique as a
 way of hedging against unanticipated policy regime switches. The empirical
 results show mixed evidence on Farmer's hypothesis during the
 hyperinflationary episodes studied. 
Journal: Applied Economics 
Pages: 1389-1397 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110096831 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096831 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1389-1397




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Sastre Jimenez 
Author-X-Name-First: Luis Sastre 
Author-X-Name-Last: Jimenez 
Title: Tourism revenues and residential foreign investment flows in Spain: a simultaneous model 
Abstract:
  The aim of this work is to analyse the determinants of the tourism
 revenues and the residential foreign investment, in Spain, during the
 period 1967-1998. To do so, a two equation simultaneous model is proposed
 to be estimated. The specification highlights the simultaneous and direct
 interdependence of the tourism revenues and the residential foreign
 investment flows. This result contrasts with the traditional standard
 specification of the international tourism demands in Spain. Nonlinear
 simultaneous estimations, cointegration techniques and a battery of
 specification tests are the econometric tools applied in the work. 
Journal: Applied Economics 
Pages: 1399-1410 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110099234 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099234 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1399-1410




Template-Type: ReDIF-Article 1.0
Author-Name: Sheng-Ping Yang 
Author-X-Name-First: Sheng-Ping 
Author-X-Name-Last: Yang 
Title: Identifying a dominant firm's market power among sellers of a homogeneous product: an application to Alcoa 
Abstract:
  This paper measures the extent of Alcoa's (dominant firm) market power in
 the post-war US aluminium industry. An indirect procedure that combines
 estimation of the fringe supply elasticity, market demand elasticity, and
 extant market share data generates the estimate of Alcoa's residual demand
 elasticity which infers the firm's market power. Results show that Alcoa's
 market power declines with fringe's expansion. 
Journal: Applied Economics 
Pages: 1411-1419 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110099270 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099270 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1411-1419




Template-Type: ReDIF-Article 1.0
Author-Name: Germa Bel 
Author-X-Name-First: Germa 
Author-X-Name-Last: Bel 
Title: Privatization: public offerings and political objectives 
Abstract:
  This paper empirically analyses the political and economic objectives
 underlying privatization on the stock market. Particularly, the factors of
 SIPs underpricing, are explained, and the study analyses whether the
 change of political parties in government play a role on the issue. The
 paper has two main findings. First, larger initial returns occurred in the
 early stages of privatization. Second, the change of government from
 left-wing to right-wing did not lead to significantly higher levels of
 underpricing. The results show that governments are quite pragmatic with
 respect to underpricing: maximizing proceeds from SIPs shows to be more
 important than ideological differences between parties in government. 
Journal: Applied Economics 
Pages: 1421-1432 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110100826 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110100826 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1421-1432




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Liu 
Author-X-Name-First: Xiaohui 
Author-X-Name-Last: Liu 
Author-Name: Peter Burridge 
Author-X-Name-First: Peter 
Author-X-Name-Last: Burridge 
Author-Name: P. J. N. Sinclair 
Author-X-Name-First: P. J. N. 
Author-X-Name-Last: Sinclair 
Title: Relationships between economic growth, foreign direct investment and trade: evidence from China 
Abstract:
  This study investigates the causal links between trade, economic growth
 and inward foreign direct investment (FDI) in China at the aggregate
 level. The integration and cointegration properties of quarterly data are
 analysed. Long-run relationships between growth, exports, imports and FDI
 are identified in a cointegration framework, in which this paper finds
 bi-directional causality between economic growth, FDI and exports.
 Economic development, exports and FDI appear to be mutually reinforcing
 under the open-door policy. 
Journal: Applied Economics 
Pages: 1433-1440 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110100835 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110100835 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1433-1440




Template-Type: ReDIF-Article 1.0
Author-Name: John Hayfron 
Author-X-Name-First: John 
Author-X-Name-Last: Hayfron 
Title: Panel estimates of the earnings gap in Norway: do female immigrants experience a double earnings penalty? 
Abstract:
  This study explores the possibility that being both a 'female' and an
 'immigrant' will impose an earnings disadvantage on immigrant women in
 Norway. Well-known techniques are used to decompose the earnings gap
 between Norwegian men and immigrant women into portions attributable to
 productivity differentials, portions attributable to a gender effect, and
 portions attributable to an ethnic effect. The analysis supports the
 following conclusions: First, there is evidence of a double negative
 effect on female immigrant earnings. Second, gender effect is more
 important than ethnic effect. Finally, the discrimination estimates are
 robust to the alternative methods used in decomposing Norwegian
 men-immigrant women earnings gap. 
Journal: Applied Economics 
Pages: 1441-1452 
Issue: 11 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110101429 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110101429 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1441-1452




Template-Type: ReDIF-Article 1.0
Author-Name: P. Garcia-Castrillo 
Author-X-Name-First: P. 
Author-X-Name-Last: Garcia-Castrillo 
Author-Name: A. Montanes 
Author-X-Name-First: A. 
Author-X-Name-Last: Montanes 
Author-Name: F. Sanz-Gracia 
Author-X-Name-First: F. 
Author-X-Name-Last: Sanz-Gracia 
Title: A worldwide assessment of scientific production in economics (1992-1997) 
Abstract:
  The aim of this article is to analyse the worldwide production in
 economics. To that end, bibliometric indicators are constructed by way of
 a database made-up of 55 international journals, covering the period
 1992-1997. A ranking of the leading thousand international affiliations is
 established and quality indices of the first 200 are presented. Finally, a
 detailed analysis is carried out at country level and with respect to the
 12 leading countries. 
Journal: Applied Economics 
Pages: 1453-1475 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110102770 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110102770 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1453-1475




Template-Type: ReDIF-Article 1.0
Author-Name: Gaines Liner 
Author-X-Name-First: Gaines 
Author-X-Name-Last: Liner 
Author-Name: Rob Roy McGregor 
Author-X-Name-First: Rob Roy 
Author-X-Name-Last: McGregor 
Title: Optimal annexation 
Abstract:
  Previous empirical studies of the effects of annexation on municipal
 expenditures and municipal efficiency have yielded mixed results. Here it
 is argued that as municipalities grow through annexation, there may be
 administrative and service delivery efficiencies that, at least for a
 time, more than offset the inefficiencies of a heightened degree of
 monopoly power in the provision of infrastructure and services. If this is
 the case, then the rates of growth of both per capita taxes and per capita
 spending will decrease with annexation. Eventually, though, administrative
 and service inefficiencies are likely to develop as the city's geographic
 area and population base increase, and monopoly inefficiencies are likely
 to worsen. If this is the case, then the rates of growth of both per
 capita taxes and per capita spending will increase with annexation. Thus,
 there may be some level of annexation activity at which the growth of per
 capita taxes and the growth of per capita spending will be minimized.
 Municipal annexation, taxation, and expenditure outcomes from the 1970s
 are analysed in an empirical framework that reflects the interactions
 among these variables in dynamic municipal settings. The results are
 consistent with the existence of an optimal level of annexation. 
Journal: Applied Economics 
Pages: 1477-1485 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110108035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110108035 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1477-1485




Template-Type: ReDIF-Article 1.0
Author-Name: Terry Robinson 
Author-X-Name-First: Terry 
Author-X-Name-Last: Robinson 
Author-Name: Andrzej Baniak 
Author-X-Name-First: Andrzej 
Author-X-Name-Last: Baniak 
Title: The volatility of prices in the English and Welsh electricity pool 
Abstract:
  The volatility of spot prices has been a notable feature of the English
 and Welsh Electricity Pool since its formation in 1990. This study
 investigates the possibility that the volatility of spot prices is
 strongly affected by the functioning of the contract market for
 electricity. This paper suggest that generators with market power may have
 an incentive to create volatility in the spot market in order to benefit
 from higher risk premia in the contract market. A simple theoretical model
 is used to illustrate this argument. Nonparametric techniques are used to
 test for changes in volatility after the expiry of the coal contracts in
 1993 and during the price cap of 1994-1996. Strongly significant increases
 in volatility are found in the latter period. 
Journal: Applied Economics 
Pages: 1487-1495 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110108063 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110108063 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1487-1495




Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Almus 
Author-X-Name-First: Matthias 
Author-X-Name-Last: Almus 
Title: What characterizes a fast-growing firm? 
Abstract:
  The paper seeks to empirically identify factors that influence the
 probability of being a fast-growing firm in Eastern and Western Germany.
 Descriptive analyses have shown that most firms experience only small
 positive or negative employment growth or stagnate over time. The job
 generation mechanism rests with a handful of firms that increase their
 employment significantly over time. The empirical analysis shows that the
 probability of being a fast-growing firm depends on different factors when
 separating Eastern and Western Germany as well as using different
 definitions of fast-growing firms. Moreover, the analysis shows that
 technology-intensive manufacturing branches and knowledge-based
 business-related services do not generate the majority of fast-growing
 firms. 
Journal: Applied Economics 
Pages: 1497-1508 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110105010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110105010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1497-1508




Template-Type: ReDIF-Article 1.0
Author-Name: Therese Hindman Persson 
Author-X-Name-First: Therese Hindman 
Author-X-Name-Last: Persson 
Title: Welfare calculations in models of the demand for sanitation 
Abstract:
  Empirical and theoretical research on the demand for health inputs has
 been, and still is, extensive. However, it is not only important to
 analyse how household choice is affected by alternative and household
 specific attributes, but it is equally important to analyse the welfare
 implications of, for example, a change in the price of different inputs.
 Policymakers and donor agencies involved in sanitation programmes will
 typically be interested in the welfare implications of different policy
 alternatives. This paper analyses the welfare implications of a change in
 the price of certain sanitation related inputs. In addition, a comparison
 of the welfare estimates derived from the 'standard' approach, i.e. the
 conditional logit model and the more novel approach i.e. the random
 parameter/mixed logit model is undertaken. The findings suggest that model
 choice indeed has implications for the results since the welfare estimates
 from the two models differ quite remarkably. 
Journal: Applied Economics 
Pages: 1509-1518 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110102752 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110102752 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1509-1518




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew McKenzie 
Author-X-Name-First: Andrew 
Author-X-Name-Last: McKenzie 
Author-Name: Matthew Holt 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Holt 
Title: Market efficiency in agricultural futures markets 
Abstract:
  Market efficiency and unbiasedness are tested in four agricultural
 commodity futures markets - live cattle, hogs, corn, and soybean meal -
 using cointegration and error correction models with GQARCH-in-mean
 processes. Results indicate each market is unbiased in the long run,
 although cattle, hogs and corn futures markets exhibit short-run
 inefficiencies and pricing biases. Models for cattle and corn outperform
 futures prices in out-of-sample forecasting. Results also suggest
 short-run time-varying risk premiums in cattle and hog futures markets. 
Journal: Applied Economics 
Pages: 1519-1532 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110102761 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110102761 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1519-1532




Template-Type: ReDIF-Article 1.0
Author-Name: Alejandra Mizala 
Author-X-Name-First: Alejandra 
Author-X-Name-Last: Mizala 
Author-Name: Pilar Romaguera 
Author-X-Name-First: Pilar 
Author-X-Name-Last: Romaguera 
Author-Name: Dario Farren 
Author-X-Name-First: Dario 
Author-X-Name-Last: Farren 
Title: The technical efficiency of schools in Chile 
Abstract:
  This paper assesses the technical efficiency of schools in Chile, which
 is defined as the capacity of schools to generate the maximum output
 (academic achievement) given the quantity of inputs they use. Two
 alternative methodological approaches for measuring efficiency are used:
 (i) estimation of a stochastic production frontier, and (ii) data
 envelopment analysis (DEA), which allows identification of the efficient
 production frontier of the schools analysed nonparametrically. Each of
 these techniques has advantages and limitations, which are discussed in
 the paper; they lead, however, to the same conclusions when a sample of
 2000 schools is analysed. The results obtained provide interesting points
 for educational policy discussion in Chile. 
Journal: Applied Economics 
Pages: 1533-1552 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110103256 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110103256 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1533-1552




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Wen Rong Liu 
Author-X-Name-First: Wen Rong 
Author-X-Name-Last: Liu 
Author-Name: Steven Caudill 
Author-X-Name-First: Steven 
Author-X-Name-Last: Caudill 
Title: Tax-and-spend, spend-and-tax, or fiscal synchronization: new evidence for ten countries 
Abstract:
  Cointegration and vector autoregression are used to test the
 'Tax-and-Spend', 'Spend-and-Tax', and 'Fiscal Synchronization' for ten
 countries using annual time-series data over the period 1951 to 1996.
 Three of them are part of the newly industrialized countries of Asia
 (South Korea, Taiwan, and Thailand) and seven are industrialized countries
 (Australia, Canada, Japan, New Zealand, South Africa, UK, and the USA).
 This paper includes GDP as a control variable into the model like
 Baghestani and Mcnown (1994), Ross and Payne (1998), and Koren and
 Stiassny (1998). The Johansen (1988) and Johansen and Juselius (1990)
 cointegration test results indicate that these three variables are
 cointegrated with two cointegrating vectors for South Korea, one vector
 for Australia, Canada, South Africa, Taiwan, UK, and the USA, and no
 vector for Japan, New Zealand, and Thailand. The results from Granger
 causality tests suggest unidirectional causality running from revenues to
 spending, supporting the 'Tax-and-Spend' hypothesis, for Japan, South
 Korea, Taiwan, UK, and the USA. The opposite relationship, supporting the
 'Spend-andTax' hypothesis, holds only for Australia and South Africa. In
 the case of Canada, this study finds a feedback existing between revenues
 and spending, supporting the 'Fiscal Synchronization' hypothesis. For New
 Zealand and Thailand, these results support none of the hypotheses. 
Journal: Applied Economics 
Pages: 1553-1561 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110103265 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110103265 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1553-1561




Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Barba Navaretti 
Author-X-Name-First: Giorgio Barba 
Author-X-Name-Last: Navaretti 
Author-Name: Enrico Santarelli 
Author-X-Name-First: Enrico 
Author-X-Name-Last: Santarelli 
Author-Name: Marco Vivarelli 
Author-X-Name-First: Marco 
Author-X-Name-Last: Vivarelli 
Title: The role of subsidies in promoting Italian joint ventures in least developed and transition economies 
Abstract:
  This paper analyses the impact of subsidies for the promotion of Italian
 joint ventures (JVs) aimed at LDCs and transition economies. The empirical
 analysis is carried out on a unique dataset of 172 JVs interviewed during
 1998 by means of a closed-answer qualitative-quantitative questionnaire.
 The main finding of the study is that, although there is a significant
 deadweight component in incentive policy, the subsidized firms are
 significantly more likely to grow. Moreover, the JVs comprising new firms
 (which need to grow to survive) also have a higher employment performance
 than average, as do the (labour intensive) JVs motivated by the search for
 lower labour costs, and the JVs in east European countries. 
Journal: Applied Economics 
Pages: 1563-1569 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110105029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110105029 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1563-1569




Template-Type: ReDIF-Article 1.0
Author-Name: Vani Borooah 
Author-X-Name-First: Vani 
Author-X-Name-Last: Borooah 
Title: Does unemployment make men less 'marriageable'? 
Abstract:
  This paper distinguishes three marital states: married; cohabiting; and
 single. It examines, applying the method of multinomial logit to data on
 men, aged 18-30, drawn from the Family Expenditure Survey for the UK, the
 extent to which their probabilities, of being in each of these states, is
 affected by their economic status and by their educational level. It
 concludes that being unemployed significantly reduces the chances of men
 being married. 
Journal: Applied Economics 
Pages: 1571-1582 
Issue: 12 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110108044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110108044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1571-1582




Template-Type: ReDIF-Article 1.0
Author-Name: Lourens Broersma 
Author-X-Name-First: Lourens 
Author-X-Name-Last: Broersma 
Author-Name: Frank A. G. Den Butter 
Author-X-Name-First: Frank A. G. Den 
Author-X-Name-Last: Butter 
Title: An explorative empirical analysis of the influence of labour flows on wage formation 
Abstract:
  This study presents an explorative econometric analysis of the influence
 of labour market flows on wage formation. It applies the vector
 cointegration and common trends methodology of Johansen (Likelihood-based
 Inference in Cointegrated Vector Autoregresssive Models, OUP, Oxford,
 1995). According to this approach, a combination of the flow of layoffs
 (flow from employment to unemployment) and the flow of filled vacancies
 (successful matches) appears to be an adequate alternative to the
 unemployment rate as indicator of labour market tightness in the wage
 equation for The Netherlands. 
Journal: Applied Economics 
Pages: 1583-1592 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110116405 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110116405 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1583-1592




Template-Type: ReDIF-Article 1.0
Author-Name: L. Fanelli 
Author-X-Name-First: L. 
Author-X-Name-Last: Fanelli 
Author-Name: M. Mazzocchi 
Author-X-Name-First: M. 
Author-X-Name-Last: Mazzocchi 
Title: A cointegrated VECM demand system for meat in Italy 
Abstract:
  This article applies cointegration techniques to estimate a monthly
 demand system for meat in Italy. In contrast to existing studies where
 Engle and Granger's two step procedure and Triangular Vector Error
 Correction Model (TVECM) representations are usually exploited, it applies
 a cointegrated Vector Error Correction Model (VECM) where also prices and
 expenditure enter endogenously the system and the cointegration rank is
 not assumed to be known a priori but subject to inference. It highlights
 some of the advantages of using the VECM compared to the TVECM, including
 the possibility of testing the cointegration rank of the system and the
 (weak and strong) exogeneity of prices and expenditure within a
 well-specified statistical model. This may lead to remarkable improvements
 in the efficiency of parameters system estimates. 
Journal: Applied Economics 
Pages: 1593-1605 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110111167 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111167 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1593-1605




Template-Type: ReDIF-Article 1.0
Author-Name: Christos Papadas 
Author-X-Name-First: Christos 
Author-X-Name-Last: Papadas 
Author-Name: W. George Hutchinson 
Author-X-Name-First: W. George 
Author-X-Name-Last: Hutchinson 
Title: Neural network forecasts of input-output technology 
Abstract:
  A significant part of the literature on input-output (IO) analysis is
 dedicated to the development and application of methodologies forecasting
 and updating technology coefficients and multipliers. Prominent among such
 techniques is the RAS method, while more information demanding econometric
 methods, as well as other less promising ones, have been proposed.
 However, there has been little interest expressed in the use of more
 modern and often more innovative methods, such as neural networks in IO
 analysis in general. This study constructs, proposes and applies a
 Backpropagation Neural Network (BPN) with the purpose of forecasting IO
 technology coefficients and subsequently multipliers. The RAS method is
 also applied on the same set of UK IO tables, and the discussion of
 results of both methods is accompanied by a comparative analysis. The
 results show that the BPN offers a valid alternative way of IO technology
 forecasting and many forecasts were more accurate using this method.
 Overall, however, the RAS method outperformed the BPN but the difference
 is rather small to be systematic and there are further ways to improve the
 performance of the BPN. 
Journal: Applied Economics 
Pages: 1607-1615 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110118133 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110118133 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1607-1615




Template-Type: ReDIF-Article 1.0
Author-Name: Vicent Arago 
Author-X-Name-First: Vicent 
Author-X-Name-Last: Arago 
Author-Name: A. Fernandez 
Author-X-Name-First: A. 
Author-X-Name-Last: Fernandez 
Title: Expiration and maturity effect: empirical evidence from the Spanish spot and futures stock index 
Abstract:
  The paper studies how the time remaining to the expiration date of
 derivative markets affects the volatility of the IBEX-35 index (expiration
 effect) and its futures market (maturity effect). The innovation of the
 study lies in both effects being studied together for the Spanish stock
 market using bivariate ECM-GARCH including dummy variables that express
 the time left to expiration day. The results obtained show that, during
 the week of the expiration day, the conditional variance of both markets
 increases without presenting any significant behaviour in the correlation
 level. During the second week, however, the conditional variance
 diminishes and the degree of correlation between both markets increases. 
Journal: Applied Economics 
Pages: 1617-1626 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110111086 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111086 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1617-1626




Template-Type: ReDIF-Article 1.0
Author-Name: K. Aristotelous 
Author-X-Name-First: K. 
Author-X-Name-Last: Aristotelous 
Title: The impact of the post-1972 floating exchange-rate regime on US exports 
Abstract:
  By employing the techniques of cointegration and error-correction models,
 this article empirically investigates the impact of the post-1972 floating
 exchange-rate regime on the volume of US bilateral exports to Canada,
 Germany, Japan and the UK. The econometric models specified in the
 analysis were estimated using quarterly data for the sample period
 1959:1-1997:4. The empirical results provide evidence that the post-1972
 exchange-rate regime is less conducive to trade than the Bretton-Woods
 fixed exchange rate regime. 
Journal: Applied Economics 
Pages: 1627-1632 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110112535 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110112535 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1627-1632




Template-Type: ReDIF-Article 1.0
Author-Name: Don Webber 
Author-X-Name-First: Don 
Author-X-Name-Last: Webber 
Title: Policies to stimulate growth: should we invest in health or education? 
Abstract:
  Empirical studies in the literature on economic growth have focused on
 the affect of education and yet Knowles and Owen (1995, 1997) found
 health, proxied by life expectancy, to be highly statistically significant
 with education having a modest role. This study extends their model and
 employs variables that are more conducive to policy formulation: calorific
 intake and school enrolment ratios. Results suggest that reducing
 undernutrition would only make a modest contribution to economic growth
 while increasing enrolment ratios, especially secondary, has a positive
 and more significant effect. Policies to increase economic growth should
 favour investments in education over health. 
Journal: Applied Economics 
Pages: 1633-1643 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110115109 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110115109 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1633-1643




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Berument 
Author-Name: Mohamed Mehdi Jelassi 
Author-X-Name-First: Mohamed Mehdi 
Author-X-Name-Last: Jelassi 
Title: The Fisher hypothesis: a multi-country analysis 
Abstract:
  This paper tests whether the Fisher hypothesis holds for a sample of 26
 countries by assessing the long run relationship between nominal interest
 rates and inflation rates taking into consideration the short run dynamics
 of interest rates. The empirical evidence supports the hypothesis that
 there is a one-to-one relationship between the interest rate and inflation
 for more than half of the countries under study. 
Journal: Applied Economics 
Pages: 1645-1655 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110115118 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110115118 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1645-1655




Template-Type: ReDIF-Article 1.0
Author-Name: Harminder Battu 
Author-X-Name-First: Harminder 
Author-X-Name-Last: Battu 
Author-Name: Robert McMaster 
Author-X-Name-First: Robert 
Author-X-Name-Last: McMaster 
Author-Name: Michael White 
Author-X-Name-First: Michael 
Author-X-Name-Last: White 
Title: An empirical investigation of Oliver Williamson's 'organization of work' 
Abstract:
  Oliver Williamson argues that the attributes of the employment contract,
 like intermediate transactions in general, are essentially driven by the
 specificity of assets. In the case of the organization of work it is the
 particular attributes of labour that determines the transaction costs of
 any given governance structure. The paper presents a stylized account of
 the transaction cost model of the efficient organization of work,
 stressing an underlying tension and ambiguity in the transaction cost
 framework. The paper exploits a unique dataset to test, for the first time
 with British data, Williamson's transaction cost predictions concerning
 the nature of employment contracts. Williamson tacitly assumes that asset
 specificity is exogenous in general. However, there is evidence in the
 literature that labour specificity is endogenous to employment contracts.
 The paper endeavours to demonstrate that there is empirical evidence to
 suggest that specialized labour is indeed endogenous in the transaction
 cost model. The major implication is that the organization of work cannot
 be considered as an example of the efficient organization of intermediate
 transactions. 
Journal: Applied Economics 
Pages: 1657-1669 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110115127 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110115127 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1657-1669




Template-Type: ReDIF-Article 1.0
Author-Name: Ying-Foon Chow 
Author-X-Name-First: Ying-Foon 
Author-X-Name-Last: Chow 
Author-Name: John Cotsomitis 
Author-X-Name-First: John 
Author-X-Name-Last: Cotsomitis 
Author-Name: Andy Kwan 
Author-X-Name-First: Andy 
Author-X-Name-Last: Kwan 
Title: Multivariate cointegration and causality tests of Wagner's hypothesis: evidence from the UK 
Abstract:
  The purpose of this paper is to examine the issue of omitted variables in
 testing the long run validity of Wagner's hypothesis. Using UK data for
 the period 1948 to 1997, this paper first investigates the secular
 relationship between public spending and economic development in a
 bivariate system. In all cases considered, our bivariate cointegration
 tests indicate the absence of a long run equilibrium condition. However,
 the introduction of a third variable (money supply) re-establishes a
 cointegrating relationship between public expenditure and economic
 development variables. In addition, the results of the Granger's
 multivariate causality test indicate a unidirectional causality from
 income and money supply to public spending in the long run, thus providing
 support for Wagner's hypothesis. 
Journal: Applied Economics 
Pages: 1671-1677 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110115659 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110115659 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1671-1677




Template-Type: ReDIF-Article 1.0
Author-Name: U. -G. Gerdtham 
Author-X-Name-First: U. -G. 
Author-X-Name-Last: Gerdtham 
Author-Name: M. Lothgren 
Author-X-Name-First: M. 
Author-X-Name-Last: Lothgren 
Title: New panel results on cointegration of international health expenditure and GDP 
Abstract:
  This article tests for existence of cointegration between health
 expenditure and GDP using data from 25 OECD countries for the period
 19607ndash;1997. The empirical modelling is based on a heterogeneous
 bivariate vector error correction panel model that allows for trending
 data as well as intercepts and trends in the cointegrating relations.
 Univariate country-by-country and panel unit root tests generally fail to
 reject the null of a unit root in the health expenditure and GDP
 variables. Country-by-country results based on the Johansen multivariate
 likelihood-based inference indicate somewhat mixed results on
 country-specific cointegration with a rank of one found for 12 countries
 and a rank of zero for the remaining 13 countries. Application of a new
 panel test for cointegration rank with higher power than the individual
 tests indicates that health expenditure and GDP are cointegrated around
 linear trends. 
Journal: Applied Economics 
Pages: 1679-1686 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110116397 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110116397 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1679-1686




Template-Type: ReDIF-Article 1.0
Author-Name: Sumru Altug 
Author-X-Name-First: Sumru 
Author-X-Name-Last: Altug 
Author-Name: Alpay Filiztekin 
Author-X-Name-First: Alpay 
Author-X-Name-Last: Filiztekin 
Title: Scale effects, time-varying markups, and the cyclical behaviour of primal and dual productivity 
Abstract:
  This paper presents estimates of the degree of returns to scale using
 nonparametric measures of primal and dual productivity for 2-digit US
 manufacturing industries. As part of the analysis, the cyclical behaviour
 of primal and dual productivity measures are considered, time-varying
 markups are allowed for, and the small sample properties of the
 instrumental variables estimator used to derive the estimates from the
 primal and dual relations examined. Both the primal and dual estimates
 indicate the existence of increasing returns to scale for the durable
 goods industries. The simulation results indicate there is a slight
 tendency for the dual equation estimates to overestimate the degree of
 returns to scale. However, small sample bias appears to be most severe for
 the non-durable goods industries. 
Journal: Applied Economics 
Pages: 1687-1702 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110116414 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110116414 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1687-1702




Template-Type: ReDIF-Article 1.0
Author-Name: E. Skoufias 
Author-X-Name-First: E. 
Author-X-Name-Last: Skoufias 
Author-Name: A. Suryahadi 
Author-X-Name-First: A. 
Author-X-Name-Last: Suryahadi 
Title: A cohort analysis of wages in Indonesia 
Abstract:
  This article uses repeated cross-sectional data for the years 1986 to
 1998 to examine how the median and spread in the distribution of wages
 among workers of different age and gender were affected by the economic
 growth and contraction in output during this period. It finds that it is
 mainly the younger cohorts of male and female workers that have reaped the
 benefits of the growing employment and wages in the formal sector. The
 growing wage sector has been absorbing many of the young entrants into the
 labour market but more male workers than female workers. The increases in
 the median wages of these younger cohorts have been accompanied by a rise
 in the inequality of earnings. The level as well as the increase in
 dispersion is also higher for females of younger cohorts than male
 cohorts. The declines in real wages since the 1997 crisis have been
 relatively evenly distributed among male and female workers and across
 different age cohorts, while the impact of the crisis on wage inequality
 has been mixed. 
Journal: Applied Economics 
Pages: 1703-1710 
Issue: 13 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110118115 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110118115 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1703-1710




Template-Type: ReDIF-Article 1.0
Author-Name: Jenifer Piesse 
Author-X-Name-First: Jenifer 
Author-X-Name-Last: Piesse 
Author-Name: Bruce Hearn 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Hearn 
Title: Equity market integration versus segmentation in three dominant markets of the Southern African Customs Union: cointegration and causality tests 
Abstract:
  Empirical tests of theories of financial market integration and
 segmentation have predominantly focused on developed OECD countries and
 the emerging markets of Asia Pacific. This study uses a unique panel of
 equity market indices from the principal Southern African Customs Union
 (SACU) markets. It tests the hypothesis of market integration using a
 cointegration approach. Markets that are found to be integrated are then
 tested for evidence of Granger causality through an error correction
 mechanism. Results obtained using VAR modelling techniques are compared to
 those using an ARDL model. While results lend support to existing trade,
 macroeconomic and developmental linkages and effects between and within
 the countries, there is some evidence for the presence of a regional
 factor common to African Emerging Markets that explains causality from
 Namibia to South Africa. The results support the view that institution
 building has progressed, which is considered to be a valuable contribution
 to growth promotion policies in SSA and market integration throughout
 financial markets in the SADC community. 
Journal: Applied Economics 
Pages: 1711-1722 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110119448 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110119448 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1711-1722




Template-Type: ReDIF-Article 1.0
Author-Name: Federico Revelli 
Author-X-Name-First: Federico 
Author-X-Name-Last: Revelli 
Title: Testing the taxmimicking versus expenditure spill-over hypotheses using English data 
Abstract:
  Spatial interaction among local governments in tax setting and public
 spending decisions is receiving increasing attention in the applied public
 economics literature. Spatial interaction models rely on the presence of
 an externality from local budget making: in traditional public finance
 models, external effects originate either from interjurisdictional
 resource flows due to tax competition for a mobile base, or from local
 public expenditure spill-overs into neighbouring jurisdictions. However,
 the recent political agency/yardstick competition literature has stressed
 the role of 'informational' externalities between neighbouring
 jurisdictions, and predicted tax mimicry at the local level. The actual
 relevance of the above hypotheses clearly needs to be assessed
 empirically. In this paper, an attempt is made at discriminating between
 alternative sources of local fiscal interaction, by using data on the
 English municipal authorities' budgets. While both public spending levels
 and local property tax rates exhibit considerable positive spatial
 autocorrelation, maximum likelihood and instrumental variables estimation
 results suggest that the interdependence among local governments can be
 attributed to mimicking behaviour in local property tax setting. 
Journal: Applied Economics 
Pages: 1723-1731 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210122353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210122353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1723-1731




Template-Type: ReDIF-Article 1.0
Author-Name: Pundarik Mukhopadhaya 
Author-X-Name-First: Pundarik 
Author-X-Name-Last: Mukhopadhaya 
Title: The trend of welfare disparity among subgroups of population in Australia 1983-1984 - 1993-1994 
Abstract:
  The aim of this paper is to estimate the trend of social welfare for
 Australia using 1983-1984, 1988-1989 and 1993-1994 Household Expenditure
 Survey data. The functional form of the Social Welfare Function (SWF) was
 derived by Sen, Degum, Yitzhaki and Shesinski (all independently). Since
 the function contains the Gini coefficient as the inequality parameter, it
 could not be formally disaggregated by subgroups of population. This
 paper, using a method of subgroup decomposition of the Gini coefficient
 developed by Podder, attempts to disaggregate the SWF. With this method it
 is now possible to identify disadvantaged groups by their relative shares
 in total welfare. In addition the method is used to determine effect of
 economic growth on specific subgroups, and in turn, on total social
 welfare. This study is based on the Australian economy. Distribution of
 relative shares of total social welfare among various regional groups are
 identified, groups determined by occupational status and groups determined
 by country of birth. The effect on society's welfare for a percentage
 change in income of a group and the trend of relative welfare of a
 specific group are also computed. This information can be used in a
 variety of social decision making situations, including cost benefit
 analysis. 
Journal: Applied Economics 
Pages: 1733-1741 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210124171 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124171 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1733-1741




Template-Type: ReDIF-Article 1.0
Author-Name: Sarmistha Pal 
Author-X-Name-First: Sarmistha 
Author-X-Name-Last: Pal 
Title: Household sectoral choice and effective demand for rural credit in India 
Abstract:
  An analysis of the ICRISAT data from three Indian villages raises concern
 about the extent of rationing mechanism inhibiting the spread of formal
 credit in rural India where a significant proportion of households do not
 have any outstanding loan or borrow from the informal sector only. A
 limited-dependent econometric analysis of the factors jointly determining
 household sectoral choice and effective demand for informal loan
 conditional on whether a formal loan is available suggests that compared
 to formal loan easy and adequate access and prompt recovery are
 significant determinants of the popularity and viability of informal rural
 credit among sample households; also some households substitute labour
 income to ease the extent of credit. Thus, rationing of the formal credit
 is not the only factor inhibiting the spread of formal credit in the study
 villages. 
Journal: Applied Economics 
Pages: 1743-1755 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210121228 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210121228 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1743-1755




Template-Type: ReDIF-Article 1.0
Author-Name: Amalia Yiannaka 
Author-X-Name-First: Amalia 
Author-X-Name-Last: Yiannaka 
Author-Name: Konstantinos Giannakas 
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Giannakas 
Author-Name: Kien Tran 
Author-X-Name-First: Kien 
Author-X-Name-Last: Tran 
Title: Medium, message and advertising effectiveness in the Greek processed meats industry 
Abstract:
  This paper examines the effectiveness of advertising in the fast-growing
 Greek processed meats sector using an unbalanced panel data set of 34
 firms during the period 1983-1997. In analysing the relationship between
 firms' sales and advertising this study differentiates between the
 type/content of the advertising message and the medium used to communicate
 it. Advertising expenditures are disaggregated into company and product
 campaigns in television, radio, and print media. Empirical results
 strongly reject the hypothesis of homogeneous consumer response to all
 kinds of advertising that is implicit in studies that aggregate
 advertising expenditures. The results also indicate an inefficient
 allocation of advertising resources by the firms of the sector;
 advertising in the least utilized print media was determined to be by far
 the most effective strategy during the study period. 
Journal: Applied Economics 
Pages: 1757-1763 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110118755 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110118755 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1757-1763




Template-Type: ReDIF-Article 1.0
Author-Name: Willie Belton 
Author-X-Name-First: Willie 
Author-X-Name-Last: Belton 
Author-Name: Richard Cebula 
Author-X-Name-First: Richard 
Author-X-Name-Last: Cebula 
Author-Name: Usha Nair-Reichert 
Author-X-Name-First: Usha 
Author-X-Name-Last: Nair-Reichert 
Title: Money and the dispersion of relative prices revisited 
Abstract:
  This study extends the literature on relative price dispersion by
 addressing two questions that have remained largely unanswered: (a) What
 is the impact on relative price dispersion of the variance of the
 uncertain relationship between money and prices? (b) Is there evidence
 across industries of a differential impact on price dispersion of the
 variance of the uncertain relationship between money and prices? These
 issues are examined in a bivariate GARCH-M model using monthly data from
 1963-1997. The results at the aggregate level indicate that the variance
 of the uncertain relationship between money and prices has a positive and
 significant impact on relative price dispersion during the period 1963 to
 1997. Disaggregated analysis at the industry level suggests that the
 magnitude of the impact of the variance of the uncertain money-price
 relationship differs greatly across industries and generally tends to have
 a greater impact on the price dispersion of durable goods than on the
 price dispersion of nondurable goods. This study also has important
 implications regarding the effectiveness of rules-based monetary policy in
 eliminating uncertainty associated with discretionary monetary policy. 
Journal: Applied Economics 
Pages: 1765-1773 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210124162 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124162 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1765-1773




Template-Type: ReDIF-Article 1.0
Author-Name: Leopold Sogner 
Author-X-Name-First: Leopold 
Author-X-Name-Last: Sogner 
Author-Name: Alfred Stiassny 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Stiassny 
Title: An analysis on the structural stability of Okun's law--a cross-country study 
Abstract:
  Okun's law postulates an inverse relationship between movements of the
 unemployment rate and the real gross domestic product (GDP). This article
 investigates Okun's law for 15 OECD countries and checks for its the
 structural stability. By using data on employment and the labour force
 whether structural instability is caused either from the demand side or
 supply side is inferred. 
Journal: Applied Economics 
Pages: 1775-1787 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210124180 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124180 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1775-1787




Template-Type: ReDIF-Article 1.0
Author-Name: Shin-Jong Lin 
Author-X-Name-First: Shin-Jong 
Author-X-Name-Last: Lin 
Author-Name: Lu-Chu Chien 
Author-X-Name-First: Lu-Chu 
Author-X-Name-Last: Chien 
Author-Name: Mei Lin Lee 
Author-X-Name-First: Mei Lin 
Author-X-Name-Last: Lee 
Title: Estimating the factors determining the demand for induced abortions among married women in Taiwan 
Abstract:
  This paper purports to estimate the characteristics of women who had
 experiences of abortion in 1991 based on an economic model of fertility.
 The study makes use of a national survey on the knowledge of, attitude
 towards, and practice of family planning and reproductive health among
 married women in Taiwan. The results show that older women with higher
 family income and who live in urban areas were more likely to have the
 pregnancy terminated. In addition, the decision to have an abortion was
 negatively correlated with prior pregnancy loss, but positively associated
 with the number of previous live births. On the other hand, the
 availability of abortion services as measured by the number of legal
 abortion providers at city and county levels had a negative effect on the
 demand for abortions. The local female unemployment rate was found to be
 positively correlated with the woman's decision to have an abortion. 
Journal: Applied Economics 
Pages: 1789-1798 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210124199 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124199 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1789-1798




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Yen 
Author-X-Name-First: Steven 
Author-X-Name-Last: Yen 
Author-Name: Kamhon Kan 
Author-X-Name-First: Kamhon 
Author-X-Name-Last: Kan 
Author-Name: Shew-Jiuan Su 
Author-X-Name-First: Shew-Jiuan 
Author-X-Name-Last: Su 
Title: Household demand for fats and oils: two-step estimation of a censored demand system 
Abstract:
  A censored system of household fat and oil demand equations is estimated
 with a two-step procedure, using cross-sectional data from the 1987-1988
 US Nationwide Food Consumption Survey. Own price and total expenditure
 elasticities are close to unity and there is no evidence of gross
 substitutability. Compensated elasticities suggest net substitution among
 the products considered. 
Journal: Applied Economics 
Pages: 1799-1806 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210125008 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210125008 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1799-1806




Template-Type: ReDIF-Article 1.0
Author-Name: K. Doroodian 
Author-X-Name-First: K. 
Author-X-Name-Last: Doroodian 
Author-Name: Chulho Jung 
Author-X-Name-First: Chulho 
Author-X-Name-Last: Jung 
Author-Name: Ahmet Yucel 
Author-X-Name-First: Ahmet 
Author-X-Name-Last: Yucel 
Title: Estimating the equilibrium real exchange rate: the case of Turkey 
Abstract:
Journal: Applied Economics 
Pages: 1807-1812 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210125503 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210125503 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1807-1812




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastjan Strasek 
Author-X-Name-First: Sebastjan 
Author-X-Name-Last: Strasek 
Author-Name: Timotej Jagric 
Author-X-Name-First: Timotej 
Author-X-Name-Last: Jagric 
Title: Cyclical patterns in aggregate economic activity of Slovene economy 
Abstract:
  This paper studies cyclic patterns in the Slovene economy with spectral
 analysis. It examines if the transition in Slovenia was marked by a
 statistically significant movement of aggregate economic activity, which
 corresponds to the definition of business cycle proposed by Mitchell and
 Burns (1946). It finds that in the period 1992-2000 a statistically
 significant cyclic component is present. The cyclic component oscillates
 with the frequency of 33.3 months. The results obtained in this paper
 suggest, that in the observed period two full-length cycles can be
 identified. 
Journal: Applied Economics 
Pages: 1813-1819 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210126179 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126179 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1813-1819




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Harry Bloch 
Author-X-Name-First: Harry 
Author-X-Name-Last: Bloch 
Author-Name: Grant Coble-Neal 
Author-X-Name-First: Grant 
Author-X-Name-Last: Coble-Neal 
Title: Labour and capital saving technical change in telecommunications 
Abstract:
  The Australian telecommunications sector is being improved and extended
 through substantial recent investment in intelligent technology such as
 digital switching, fibre optics, satellite and cellular transmission, and
 the Internet. These technologies are being progressively integrated with
 technology from the broadcasting, computer and electronics industries,
 providing a unified information infrastructure for information
 transmission and processing. Technological progress embodied in new
 equipment has the effect of increasing the efficiency of the factors of
 production. Such efficiency increases can be biased towards a particular
 factor. For instance, the impact of labour-augmenting technical change is
 a decline in the cost of labour per unit of production. When such biases
 are apparent the relativity between the costs of labour and capital per
 unit of production is changed. In the longer term, technical change can
 impact on the rate of employment growth and also on the rate of capital
 accumulation. In this study the Australian telecommunications cost
 structure is examined for the period 1919 to 1988. To measure labour
 saving and capital saving technical change a translog cost model is
 estimated. Multiproduct telecommunications cost studies typically employ
 the translog cost model (Evans and Heckman, 1984; Rooller, 1990a; 1990b;
 Shin and Ying, 1992; McKenzie and Small, 1997). The translog model places
 no a priori restrictions on substitution possibilities among the factors
 of production, and allows scale economies to vary with the level of
 output. 
Journal: Applied Economics 
Pages: 1821-1828 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210126188 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126188 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1821-1828




Template-Type: ReDIF-Article 1.0
Author-Name: Margherita Giannoni 
Author-X-Name-First: Margherita 
Author-X-Name-Last: Giannoni 
Author-Name: Theodore Hitiris 
Author-X-Name-First: Theodore 
Author-X-Name-Last: Hitiris 
Title: The regional impact of health care expenditure: the case of Italy 
Abstract:
  Decentralization invests the subcentral authorities of a country with
 autonomy in political and economic power the exercise of which may widen
 interregional divergence and inequality. This paper provides evidence
 demonstrating that in the case of Italy the central government's policies
 for rationalization and containment of the growth of health care
 expenditure in combination with decentralization in the administration and
 provision of health care have resulted in interregional inequality,
 aggravating the existing regional divergence. 
Journal: Applied Economics 
Pages: 1829-1836 
Issue: 14 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210126809 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126809 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1829-1836




Template-Type: ReDIF-Article 1.0
Author-Name: Jill Ann Holman 
Author-X-Name-First: Jill Ann 
Author-X-Name-Last: Holman 
Author-Name: Rebecca Neumann 
Author-X-Name-First: Rebecca 
Author-X-Name-Last: Neumann 
Title: Evidence on the cross-country transmission of monetary shocks 
Abstract:
  The international transmission of monetary shocks between the US and
 Canada is explored. Focusing on real variables such as consumption,
 investment, employment, and the bilateral trade balance, along with
 measures of US and Canadian money, the empirical analysis examines the
 impact of a monetary shock in one country on real activity in both
 countries. The long-run analysis provides evidence of cointegration among
 the variables and suggests that money plays an important role in the
 equilibrium relationships between the two countries. Variance
 decompositions and impulse response functions reveal interesting avenues
 of real transmission in the short run. The short-run analysis provides
 strong evidence that US monetary shocks affect real activity in both the
 USA and Canada. The analysis also indicates that Canadian monetary
 disturbances affect Canadian and US real activity, and that many of these
 effects are similar in magnitude to the effects of US monetary shocks. The
 importance of the nominal exchange-rate regime is also discussed. 
Journal: Applied Economics 
Pages: 1837-1857 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210135827 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135827 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1837-1857




Template-Type: ReDIF-Article 1.0
Author-Name: Leigh Drake 
Author-X-Name-First: Leigh 
Author-X-Name-Last: Drake 
Author-Name: Richard Simper 
Author-X-Name-First: Richard 
Author-X-Name-Last: Simper 
Title: X-efficiency and scale economies in policing: a comparative study using the distribution free approach and DEA 
Abstract:
  This study uses both parametric and nonparametric techniques to analyse
 scale economies and relative efficiency levels in policing in England and
 Wales. Both techniques suggest the presence of significant scale effects
 in policing and considerable divergence in relative efficiency levels
 across police forces. 
Journal: Applied Economics 
Pages: 1859-1870 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210126818 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126818 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1859-1870




Template-Type: ReDIF-Article 1.0
Author-Name: Luiz De Mello 
Author-X-Name-First: Luiz 
Author-X-Name-Last: De Mello 
Title: Public finance, government spending and economic growth: the case of local governments in Brazil 
Abstract:
  The impact of local government spending on output growth is estimated
 using a panel of Brazilian municipalities during 1985-1994. Attention is
 focused on three expenditure categories, housing/urbanization,
 health/sanitation, and transport services, which are expected to be
 growth-enhancing, and their sources of finance (local taxes,
 intergovernmental transfers, and borrowing). The determinants of these
 spending categories are also examined. The size of the municipality,
 measured by the resident population, is shown to affect government
 spending nonlinearly. This is a contribution to the recent empirical
 literature on the linkages between decentralized government spending,
 public finances, and economic growth at the local, rather than national,
 level. 
Journal: Applied Economics 
Pages: 1871-1883 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210128726 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128726 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1871-1883




Template-Type: ReDIF-Article 1.0
Author-Name: Chengqi Wang 
Author-X-Name-First: Chengqi 
Author-X-Name-Last: Wang 
Author-Name: Pamela Siler 
Author-X-Name-First: Pamela 
Author-X-Name-Last: Siler 
Author-Name: Xiaming Liu 
Author-X-Name-First: Xiaming 
Author-X-Name-Last: Liu 
Title: The relative economic performance of foreign subsidiaries in UK manufacturing 
Abstract:
  This paper compares the economic performance of UK and foreign-owned
 firms in UK manufacturing industry. A panel data set covering 14 233 firms
 for the period 1992-1996 is used and the influences of firm-, industry-
 and country-specific advantages on productivity are examined. The results
 of the study show that labour productivity is higher in foreign
 subsidiaries than in UK firms and that foreign subsidiaries as a whole
 employ higher levels of human capital and enjoy greater economies of
 scale. A further source of productivity advantage for US subsidiaries is
 their higher level of intangible assets, and for European and Japanese
 subsidiaries their higher level of capital intensity. The results have
 policy implications for the targeting of promotion activities to attract
 FDI. 
Journal: Applied Economics 
Pages: 1885-1892 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210128762 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1885-1892




Template-Type: ReDIF-Article 1.0
Author-Name: Suleiman Abubader 
Author-X-Name-First: Suleiman 
Author-X-Name-Last: Abubader 
Title: Institutional changes and breakpoints in Israeli trade 
Abstract:
  This paper examines the structural changes in Israeli trade trends since
 the 1970s. Structural change tests do not reject the null of no breaks in
 Israeli trade trends after Israel signed FTA agreements with the EEC and
 the USA, or after Israel's 1991 new trade policy. The tests, however, show
 significant evidence for breakpoints in 1993 in Israel's trade shares with
 three countries who had adhered strongly to the Arab boycott. This result
 suggests that the Middle East peace process, which began in 1991,
 considerably weakened the boycott and brought about positive changes in
 Israeli long-term trade patterns. 
Journal: Applied Economics 
Pages: 1893-1901 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210127204 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210127204 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1893-1901




Template-Type: ReDIF-Article 1.0
Author-Name: Olga Canto 
Author-X-Name-First: Olga 
Author-X-Name-Last: Canto 
Title: Climbing out of poverty, falling back in: low income stability in Spain 
Abstract:
  The study of the probability of entering or escaping a low income spell
 is not sufficient to fully describe a household's experience in
 deprivation. If poverty spells are recurrent in time, the persistency of
 poverty for a given household is not completely described unless the
 household's likelihood of a fall back into deprivation shortly after exit
 is considered. It is found that by combining the re-entry equation results
 with those of the exit equation, one can discuss, in a comprehensive way,
 which household characteristics promote welfare stability or instability
 and poverty persistence or transience. Results indicate that one-third of
 households who manage to leave poverty in Spain return to it shortly after
 exit. This upward income mobility, if maintained for a year, appears to
 enable a state of non-poverty for a lengthy period. Better-educated
 households and households with a spouse are more stable in their income
 level. Also, the point reached in the income distribution after a jump out
 of poverty is more a determinant for reducing the household's re-entry
 probability than is the duration out of poverty. 
Journal: Applied Economics 
Pages: 1903-1916 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210129392 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210129392 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1903-1916




Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Badillo 
Author-X-Name-First: Rosa 
Author-X-Name-Last: Badillo 
Author-Name: Jorge Belaire-Franch 
Author-X-Name-First: Jorge 
Author-X-Name-Last: Belaire-Franch 
Author-Name: Dulce Contreras 
Author-X-Name-First: Dulce 
Author-X-Name-Last: Contreras 
Title: Spurious rejection of the stationarity hypothesis in the presence of a break point 
Abstract:
  It is shown that KPSS and LMC tests may be seriously biased when there is
 a shift in the level or in the trend of the time series under study. 
Journal: Applied Economics 
Pages: 1917-1923 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210129400 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210129400 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1917-1923




Template-Type: ReDIF-Article 1.0
Author-Name: David Evans 
Author-X-Name-First: David 
Author-X-Name-Last: Evans 
Author-Name: Haluk Sezer 
Author-X-Name-First: Haluk 
Author-X-Name-Last: Sezer 
Title: A time preference measure of the social discount rate for the UK 
Abstract:
  In this study the social discount rate for the UK is estimated, the
 result compared with the Treasury approved rate and the main associated
 policy implications considered. A case is argued for reducing the official
 discount rate in appraisals involving all long-term social projects. The
 estimate of the elasticity of the marginal utility of consumption, an
 important component of the discount rate, is supported by plausible and
 statistically valid regression results. The need for further work relating
 to other major european countries is identified so that discount rate
 comparisons can be made on a consistent basis. 
Journal: Applied Economics 
Pages: 1925-1934 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210128753 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128753 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1925-1934




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Groothuis 
Author-X-Name-First: Peter 
Author-X-Name-Last: Groothuis 
Author-Name: John Whitehead 
Author-X-Name-First: John 
Author-X-Name-Last: Whitehead 
Title: Does don't know mean no? Analysis of 'don't know' responses in dichotomous choice contingent valuation questions 
Abstract:
  The 'don't know' response option in contingent valuation dichotomous
 choice questions is analysed using data from both willingness to pay and
 willingness to accept studies. An empirical analysis is conducted to
 determine whether respondents are stating a response similar to yes or no
 responses or a middle response. It is found that don't know responses are
 similar to no responses in the willingness to pay study. In the
 willingness to accept study, it is found that the 'don't know' responses
 are similar to a middle response. It is further suggested that researchers
 consider calculating ambivalence bounds when a don't know response is a
 middle response. 
Journal: Applied Economics 
Pages: 1935-1940 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210128717 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128717 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1935-1940




Template-Type: ReDIF-Article 1.0
Author-Name: Mercedes Gumbau-Albert 
Author-X-Name-First: Mercedes 
Author-X-Name-Last: Gumbau-Albert 
Author-Name: Joaquin Maudos 
Author-X-Name-First: Joaquin 
Author-X-Name-Last: Maudos 
Title: The determinants of efficiency: the case of the Spanish industry 
Abstract:
  The aim of this paper is to analyse the factors explaining the technical
 efficiency of Spanish industrial sectors during the period 1991-1994 using
 the Survey of Business Strategies (SBE) of the Ministry of Industry and
 Energy. It analyses whether efficiency can be explained by factors
 external to the firm such as the degree of competition in the markets in
 which it operates, characteristics of the firm (size, organization,
 advantages of location, participation of public capital, etc.), as well as
 the effects of dynamic disturbances that may affect the degree of
 utilization of the productive capacity. 
Journal: Applied Economics 
Pages: 1941-1948 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210127213 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210127213 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1941-1948




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Orbe 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Orbe 
Author-Name: Eva Ferreira 
Author-X-Name-First: Eva 
Author-X-Name-Last: Ferreira 
Author-Name: Vicente Nunez-Anton 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Nunez-Anton 
Title: Length of time spent in Chapter 11 bankruptcy: a censored partial regression model 
Abstract:
  This paper investigates original issuers of high yield bonds in Chapter
 11 bankruptcy to determine which factors affect the length of time spent
 in Chapter 11. In order to do this analysis a flexible new duration model
 is proposed, the censored partial regression model. This model allows
 consideration of the effect of some variables on the duration using a
 nonparametric functional form. It is found that the choice of prepackaged
 Chapter 11, the length of time negotiating before filling for Chapter 11,
 the profitability, the highly leveraged transactions, the participation on
 different disputes, the role of vulture funds and some institutional
 changes turn out to be relevant to analyse this duration. 
Journal: Applied Economics 
Pages: 1949-1957 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210127222 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210127222 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1949-1957




Template-Type: ReDIF-Article 1.0
Author-Name: Damian Ward 
Author-X-Name-First: Damian 
Author-X-Name-Last: Ward 
Title: The costs of distribution in the UK life insurance market 
Abstract:
  The cost of direct and independent distribution in the UK life insurance
 sector over the period 1990-1997 is examined. This is a novel contribution
 to the literature that until now has focused almost solely on distribution
 in the non-life sector. Unlike the non-life sector the distribution of
 life insurance is complicated by the existence of investor protection
 policies. Which in the UK are believed to have increased the use of
 independent agents. Using a pooled data set of 44 companies between 1990
 and 1997, this study finds little evidence for such a view. Cost benefits
 are found for firms focusing in one mode of distribution. From a modelling
 of the distribution decision this finding maybe attributed to firms
 choosing distribution systems which match the transactional problems
 associated with their product mix and/or mode of corporate governance. 
Journal: Applied Economics 
Pages: 1959-1968 
Issue: 15 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210129428 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210129428 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1959-1968




Template-Type: ReDIF-Article 1.0
Author-Name: Dominique Gross 
Author-X-Name-First: Dominique 
Author-X-Name-Last: Gross 
Title: Three million foreigners, three million unemployed? Immigration flows and the labour market in France 
Abstract:
  This paper investigates the effect of the flows of immigrant workers on
 the French labour market from the mid-1970s to the mid-1990s. Using a
 system of equations for unemployment, labour-force participation, the real
 wage and the immigration rate, it is shown that, in the long run, both
 legal and amnestied immigrant workers, and immigrant families lower the
 unemployment rate permanently. In the short-run, the arrival of immigrants
 increases unemployment slightly with an impact effect similar to that of
 an increase in domestic labour-force participation. The composition of
 immigration flows matters and the results indicate that the distribution
 between workers from the European Union and other regions of the world,
 also more skilled and less skilled workers, should remain balanced. 
Journal: Applied Economics 
Pages: 1969-1983 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110111095 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111095 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:1969-1983




Template-Type: ReDIF-Article 1.0
Author-Name: Knut Blind 
Author-X-Name-First: Knut 
Author-X-Name-Last: Blind 
Title: Driving forces for standardization at standardization development organizations 
Abstract:
  This paper investigates sector-specific driving forces for the
 standardization activities at national standardization organizations. In
 the first part, theoretical hypotheses concerning sector-specific
 standardization are derived. The empirical test is performed by a two-step
 procedure. First, based on 19 sectors, these hypotheses are tested
 empirically for Germany. The results show that R&D-intensive sectors
 standardize very actively; additionally, intellectual property rights play
 an important role. Furthermore, standardization increases with the
 concentration of the enterprises up to a certain threshold, where
 standardization activities decline again. Finally, export-intensive
 sectors tend to standardize more. Secondly, because of the small data
 base, these hypotheses are empirically tested in a pool model, an
 international cross-section approach based on 20 sectors and seven
 countries. These results are generally in concordance with the findings of
 Germany. After a summary of the results, recommendations for future
 standardization practice are given. 
Journal: Applied Economics 
Pages: 1985-1998 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110111158 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111158 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:1985-1998




Template-Type: ReDIF-Article 1.0
Author-Name: Sherrill Shaffer 
Author-X-Name-First: Sherrill 
Author-X-Name-Last: Shaffer 
Title: Ownership structure and market conduct among Swiss banks 
Abstract:
  This paper explores the degree of competition among each of several major
 categories of Swiss banks, using a structural econometric model. Conduct
 is found to vary across ownership structures, with foreign-owned banks
 exhibiting the most market power and state-owned or mutual banks the
 least. The results are consistent with agency theory but contrast with
 some previous empirical results. They are also consistent with a Swiss
 premium in the provision of international banking services, though this
 latter hypothesis is not formally tested. 
Journal: Applied Economics 
Pages: 1999-2009 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110112526 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110112526 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:1999-2009




Template-Type: ReDIF-Article 1.0
Author-Name: S. Nahar 
Author-X-Name-First: S. 
Author-X-Name-Last: Nahar 
Author-Name: B. Inder 
Author-X-Name-First: B. 
Author-X-Name-Last: Inder 
Title: Testing convergence in economic growth for OECD countries 
Abstract:
  This article explores tests for absolute convergence in economic activity
 among a set of countries. It proposes a new test procedure that allows the
 researcher to identify particular countries within the group, which might
 not be converging. It also proposes that convergence among a set of
 similar countries is better thought of as movement toward a group leader,
 rather than movement towards a group mean. Applying the new procedure to
 22 OECD countries it finds strong evidence for absolute convergence for
 the vast majority of countries towards their common steady state level.
 This article also points out why using standard unit root or cointegration
 tests with Bernard and Durlauf's definition of convergence is
 inappropriate. 
Journal: Applied Economics 
Pages: 2011-2022 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840110117837 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110117837 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2011-2022




Template-Type: ReDIF-Article 1.0
Author-Name: David Griffiths 
Author-X-Name-First: David 
Author-X-Name-Last: Griffiths 
Title: The attrition rate of United States coins in circulation: some evidence from Federal Reserve data 
Abstract:
  The United States Mint recently conducted a coin attrition study designed
 to estimate the rate at which coins are withdrawn from circulation in
 order to better plan coin production. This paper reports on the analysis
 of a large sample of coins taken from the United States Federal Reserve
 Bank cash offices used to estimate coin attrition rates by denomination.
 The dollar value of the circulating stock of coin available to serve the
 needs of commerce is estimated to be $11.8 billion (&#xa3;7.6 billion). 
Journal: Applied Economics 
Pages: 2023-2029 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210122362 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210122362 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2023-2029




Template-Type: ReDIF-Article 1.0
Author-Name: John Sawkins 
Author-X-Name-First: John 
Author-X-Name-Last: Sawkins 
Title: Examination performance in Scottish secondary schools: an ordered logit approach 
Abstract:
  This paper analyses the determinants of educational outcomes for Scottish
 secondary schools. Using an ordered logit model with data on school
 examination performance for pupils in the last year of compulsory
 education, separate equations are estimated for 1993-1994 and 1998-1999.
 The empirical results, in line with previous British studies, underline
 the importance of family, peer group and school influences in determining
 educational outcomes. They cast doubt, however, on suggestions that there
 is an 'optimal' size of school. 
Journal: Applied Economics 
Pages: 2031-2041 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210124559 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124559 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2031-2041




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Hinks 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Hinks 
Title: Gender wage differentials and discrimination in the New South Africa 
Abstract:
  Research into discrimination within South Africa (SA) has focused on
 racial issues, with gender issues being largely ignored. This study aims
 to estimate gender wage differentials and through decomposition analysis
 understand the different problems faced by white, black, coloured and
 Indian/Asian in 1995. It is found that white and Asian females suffer
 greater gender discrimination than their black and coloured counterparts,
 which could be a signal to future problems black and coloured females may
 encounter. The largest gender wage differential is faced by white females,
 whilst the lowest is encountered by coloured and black females. A possible
 explanation for this finding is the low (subsistence) wages that the black
 and coloured population groups command relative to other population
 groups. 
Journal: Applied Economics 
Pages: 2043-2052 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210124991 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124991 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2043-2052




Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Tiezzi 
Author-X-Name-First: Silvia 
Author-X-Name-Last: Tiezzi 
Title: Environmental defensive expenditures and households behaviour in Italy 
Abstract:
  The paper explores the role of Environmental Defensive Expenditures in
 the consumption behaviour of Italian households. Environmental Defensive
 Expenditures are not borne to increase households' welfare, but to prevent
 or avoid the effects of a worsening environmental quality. The literature
 on environmental accounting argues that economic growth in industrialized
 countries is accompanied by an increasing load of defensive activities
 that may lead to a reorientation of consumption behaviour. In this work
 this hypothesis is tested using annual data on mean consumption
 expenditures of Italian households from 1985 to 1996. A complete system of
 demand is estimated and short-run price elasticities of demand for
 Defensive Expenditures are calculated. The complete system of demand
 functions is specified using the Quadratic Almost Ideal Demand System
 proposed by Banks, Blundell and Lewbel. Results show that there is very
 low substitution between the demand for the six aggregate goods in which
 total expenditure is here divided and the Environmental Defensive
 Expenditures. Thus it seems that an increase in Environmental Defensive
 Expenditures, driven by a change in environmental quality, would not lead
 to a change in the consumption pattern, at least as far as Italian
 households are concerned. 
Journal: Applied Economics 
Pages: 2053-2061 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210126197 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126197 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2053-2061




Template-Type: ReDIF-Article 1.0
Author-Name: David Bernstein 
Author-X-Name-First: David 
Author-X-Name-Last: Bernstein 
Title: Fringe benefits and small businesses: evidence from the federal reserve board small business survey 
Abstract:
  Data from the 1993 National Survey of Small Businesses (NSSBF) is used to
 analyse the factors affecting the provision of pensions and health
 insurance by small businesses. The race of the business owner is found to
 impact the provision of taxadvantaged fringe benefits, even after
 accounting for a wide range of other economic and demographic variables.
 It is not possible to determine why owner race impacts the provision of
 fringe benefits by small businesses but the significance of the race
 variable might reflect a lower level of marketing effort by financial
 service firms in minority-dominated communities. The owner education
 variable, which is also significant in both the pension and health
 insurance models, could also be a proxy for the availability of general
 information about the importance of fringe benefits. With the exception of
 the sole proprietorship variable, the demographic and economic variables
 appear to have similar effects on the provision of both pensions and
 health insurance by small businesses. Some sole proprietors appear to
 prefer pension benefits to health insurance benefits possibly because
 pensions allow the business owner to shield some assets in the case of
 bankruptcy. 
Journal: Applied Economics 
Pages: 2063-2067 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210126205 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2063-2067




Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Yamada 
Author-X-Name-First: Hiroshi 
Author-X-Name-Last: Yamada 
Title: Real interest rate equalization: some empirical evidence from the three major world financial markets 
Abstract:
  This article examines the linkage of real interest rates of the three
 major world financial markets (USA, Japan and the UK) with the use of
 cointegration methods. Unlike previous works, the investigation uses a
 trivariate vector autoregressive (VAR) model in which a constant term in
 the common stochastic trends space is excluded. Based on data generated
 after the liberalization of Japan's foreign exchange market at the end of
 1980 (1981:1-1998:12), the article finds some empirical evidence
 indicating that the extent of the departure from the long-run real
 interest rate equalization (RIE) is not very large, although the null
 hypothesis of the long-run RIE is rejected in most cases. 
Journal: Applied Economics 
Pages: 2069-2073 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210128708 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128708 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2069-2073




Template-Type: ReDIF-Article 1.0
Author-Name: M. Bahmani-Oskooee 
Author-X-Name-First: M. 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: S. Chomsisengphet 
Author-X-Name-First: S. 
Author-X-Name-Last: Chomsisengphet 
Title: Stability of M2 money demand function in industrial countries 
Abstract:
Journal: Applied Economics 
Pages: 2075-2083 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210128744 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128744 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2075-2083




Template-Type: ReDIF-Article 1.0
Author-Name: Louis De Mesnard 
Author-X-Name-First: Louis 
Author-X-Name-Last: De Mesnard 
Title: Forecast output coincidence and biproportion: two criteria to determine the orientation of an economy. Comparison for France (1980-1997) 
Abstract:
  The method of forecast output coincidence used to determine if sectors
 are demandsided or supply-sided in an input-output framework mixes two
 effects, the structural effect (choosing between demand and supply side
 models) and the effect of an exogenous factor (final demand or
 added-value). The note recalls that another method is possible, the
 comparison of the stability of technical and allocation coefficients,
 generalized by the biproportional filter: if for a sector, after
 biproportional filtering, column coefficients are more stable than row
 coefficients, then this sector is declared as not supply-sided (but one
 cannot decide that it is demand-sided anyway), and conversely. 
Journal: Applied Economics 
Pages: 2085-2091 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210128771 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128771 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2085-2091




Template-Type: ReDIF-Article 1.0
Author-Name: Norman Thurston 
Author-X-Name-First: Norman 
Author-X-Name-Last: Thurston 
Title: Physician behavioural responses to variation in marginal income tax rates: longitudinal evidence 
Abstract:
  The longitudinal component of the Young Physicians Surveys (1987, 1991)
 is used to examine the impact of changes in marginal tax rates on key
 indicators of physician behaviour. Following the federal Tax Reform Act of
 1986, many states' marginal income tax rates changed. This variation is
 used to estimate the responsiveness of work hours, HMO contracting and
 practice size to changes in taxes. 
Journal: Applied Economics 
Pages: 2093-2104 
Issue: 16 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210134549 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210134549 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2093-2104




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Berger 
Author-X-Name-First: Mark 
Author-X-Name-Last: Berger 
Author-Name: Jodi Messer 
Author-X-Name-First: Jodi 
Author-X-Name-Last: Messer 
Title: Public financing of health expenditures, insurance, and health outcomes 
Abstract:
  The effects of public financing of health expenditures, insurance
 coverage and other factors on health outcomes are examined within health
 production models estimated using 1960-1992 data across 20 OECD countries.
 Mortality rates are found to depend on the mix of health care expenditures
 and the type of health insurance coverage. Increases in the publicly
 financed share of health expenditures are associated with increases in
 mortality rates. Increases in inpatient and ambulatory insurance coverage
 are associated with reduced mortality. The effects of GDP, health
 expenditures and age structure on mortality are similar to those in
 previous studies. Tobacco use, alcohol use, fat consumption, female labour
 force participation, and education levels are also significantly related
 to overall mortality rates. Increases in income inequality are associated
 with lower mortality rates, suggesting that the negative relationship
 between inequality and health outcomes suggested by some previous studies
 does not remain when a more complete model is estimated. The result that
 increases in public financing increase mortality rates is robust to a
 number of changes in specifications and samples. Thus, as countries
 increase the level of their health expenditures, they may want to avoid
 increasing the proportion of their expenditures that are publicly
 financed. 
Journal: Applied Economics 
Pages: 2105-2113 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210135665 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135665 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2105-2113




Template-Type: ReDIF-Article 1.0
Author-Name: Saeid Mahdavi 
Author-X-Name-First: Saeid 
Author-X-Name-Last: Mahdavi 
Title: The response of the US export prices to changes in the dollar's effective exchange rate: further evidence from industry level data 
Abstract:
  The relationship between the dollar's effective exchange rate and the
 export price indexes for 13 two-digit US manufacturing industries is
 analysed to determine (i) which industry adjusts its dollar export price
 to dampen or amplify the effect of the exchange rate fluctuations on the
 foreign-currency price of its exports and (ii) whether the response of the
 export price index to appreciation and depreciation of the exchange rate
 is asymmetric. For several industries, evidence consistent with dampening
 the foreign-currency price of exports in an asymmetric fashion is found.
 The implications of the results for the price competitiveness of the
 industries studied is discussed. 
Journal: Applied Economics 
Pages: 2115-2125 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210135674 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135674 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2115-2125




Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya 
Author-X-Name-First: Mita 
Author-X-Name-Last: Bhattacharya 
Title: Industrial concentration and competition in Malaysian manufacturing 
Abstract:
  Industrial concentration is the most widely studied area among various
 elements of market structure in the industrial organization literature.
 This paper is a first attempt to analyse the determinants of changes in
 industry concentration over time in the case of Malaysia. Using a partial
 adjustment model, a cross-sectional analysis is carried out against a
 sample of manufacturing industries between 1986 and 1996. Domestic factors
 in influencing competition e.g. capital intensity, advertising intensity
 and market size are found to be significant in most cases to explain the
 level of concentration. Considering variable rate of adjustment of
 concentration, an increase in labour productivity of large firms and high
 entry rates are found to be significant for faster adjustment towards
 equilibrium level. Compared with other developed countries, the annual
 rate of structural adjustment is found to be slow in the case of Malaysian
 manufacturing. 
Journal: Applied Economics 
Pages: 2127-2134 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210135683 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135683 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2127-2134




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Delorme 
Author-X-Name-First: Charles 
Author-X-Name-Last: Delorme 
Author-Name: David Kamerschen 
Author-X-Name-First: David 
Author-X-Name-Last: Kamerschen 
Author-Name: Peter Klein 
Author-X-Name-First: Peter 
Author-X-Name-Last: Klein 
Author-Name: Lisa Ford Voeks 
Author-X-Name-First: Lisa Ford 
Author-X-Name-Last: Voeks 
Title: Structure, conduct and performance: a simultaneous equations approach 
Abstract:
  A simultaneous equations framework is used to study the relationship
 between structure, conduct and performance in US manufacturing in the
 1980s and 1990s. The paper expands on earlier
 structure-conduct-performance studies by using a lag structure to signify
 that structure, conduct and performance do not affect one another
 contemporaneously. Findings support some aspects of the traditional
 structure-conduct-performance model, but challenge others. First, the data
 suggest that industry structure does not depend on current industry
 performance. Second, little evidence is found that industry conduct,
 proxied by advertising, is affected by industry structure. Third, results
 show that industry performance does not depend on industry conduct, though
 it is sensitive to industry structure. The main findings are that (1)
 concentration does not depend on firm profitability, though profitability
 depends on concentration, (2) advertising follows a process that is
 independent of the factors considered here, and (3) advertising seems to
 have no effect on profitability. 
Journal: Applied Economics 
Pages: 2135-2141 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210135836 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135836 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2135-2141




Template-Type: ReDIF-Article 1.0
Author-Name: Terence Mills 
Author-X-Name-First: Terence 
Author-X-Name-Last: Mills 
Author-Name: Geoffrey Wood 
Author-X-Name-First: Geoffrey 
Author-X-Name-Last: Wood 
Title: Wages and prices in the UK 
Abstract:
  This paper investigates the relationship between wages and prices in the
 UK using a VECM formulation and generalized impulse response functions and
 persistence profiles. Because of significant feedbacks, it finds that
 fluctuations in wage growth cannot be used directly to predict
 fluctuations in inflation. 
Journal: Applied Economics 
Pages: 2143-2149 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210135845 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135845 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2143-2149




Template-Type: ReDIF-Article 1.0
Author-Name: B. Mak Arvin 
Author-X-Name-First: B. Mak 
Author-X-Name-Last: Arvin 
Author-Name: Francisco Barillas 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Barillas 
Title: Foreign aid, poverty reduction, and democracy 
Abstract:
  Eradication of poverty is the most pervasive goal of donors' foreign aid
 programmes. As a result, there has been much research on the degree of
 correlation between aid and poverty reduction. However, this work to date
 has shed little light on the direction of causation between the two
 variables. Using the method of Granger causality, and conditioning aid and
 poverty on the state of democracy in developing countries, this study asks
 whether aid flows impact poverty, whether poverty influences aid flows, or
 whether causality proceeds in both directions simultaneously. While the
 results identify no causal relationships in some of the sub-samples, they
 point to the existence of a multitude of relationships across others. 
Journal: Applied Economics 
Pages: 2151-2156 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210136718 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210136718 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2151-2156




Template-Type: ReDIF-Article 1.0
Author-Name: Viju Ipe 
Author-X-Name-First: Viju 
Author-X-Name-Last: Ipe 
Author-Name: Subhash Bhagwat 
Author-X-Name-First: Subhash 
Author-X-Name-Last: Bhagwat 
Title: Chicago's water market: dynamics of demand, prices and scarcity rents 
Abstract:
  Chicago and its suburbs are experiencing an increasing demand for water
 from a growing population and economy and may experience water scarcity in
 the near future. The Chicago metropolitan area has nearly depleted its
 groundwater resources to a point where interstate conflicts with Wisconsin
 could accompany an increased reliance on those sources. Further, the
 withdrawals from Lake Michigan is limited by the Supreme Court decree. The
 growing demand and indications of possible scarcity suggest a need to
 reexamine the pricing policies and the dynamics of demand. The study
 analyses the demand for water and develops estimates of scarcity rents for
 water in Chicago. The price and income elasticities computed at the means
 are -0.002 and 0.0002 respectively. The estimated scarcity rents ranges
 from $0.98 to $1.17 per thousand gallons. The results indicate that the
 current prices do not fully account for the scarcity rents and suggest a
 current rate with in the range $1.53 to $1.72 per thousand gallons. 
Journal: Applied Economics 
Pages: 2157-2163 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210138383 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138383 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2157-2163




Template-Type: ReDIF-Article 1.0
Author-Name: Emili Tortosa-Ausina 
Author-X-Name-First: Emili 
Author-X-Name-Last: Tortosa-Ausina 
Title: Financial costs, operating costs, and specialization of Spanish banking firms as distribution dynamics 
Abstract:
  There exists a remarkable concern among financial analysts and policy
 makers about the high level of cost dispersion in banking. A model of
 distribution dynamics is applied to the Spanish banking companies in order
 to analyse whether such a dispersion is so high and if some factors like,
 for instance, specialization factors might somewhat influence the dynamics
 of both financial and operating expenses. Results show that there does not
 appear to exist a decrease in the level of cost dispersion, although
 firms' relative positions are changing. Yet, when controlling for the
 varying output mixes, firms produce results which differ much, as
 dispersion - assessed by means of density functions estimated
 nonparametrically - decreases substantially, suggesting concurrence is
 higher among firms with similar output mixes. 
Journal: Applied Economics 
Pages: 2165-2176 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210138400 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138400 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2165-2176




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Gonzalo 
Author-X-Name-First: Maria Teresa 
Author-X-Name-Last: Gonzalo 
Title: A new look at the UI effect on transitions from unemployment into wage employment in Spain: the limited duration of the UI benefits entitlement 
Abstract:
  This article is a new look at the study of the unemployment insurance
 effect on the transition probability from unemployment into wage
 employment in Spain. It is found that individuals increase their search
 effort and reduce their reservation wage as the unemployment insurance
 benefit entitlement exhaustion approaches, and their exit rate equals that
 of the unemployed who never got benefits from the exhaustion moment.
 Financial constraints are not important in Spain. Business cycle affects
 more to long-term unemployed. And, finally, it is found that the
 probability of being offered a vacancy decreases with time spent in
 unemployment, having allowed for unobservable heterogeneity. 
Journal: Applied Economics 
Pages: 2177-2187 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210148067 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148067 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2177-2187




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Morris 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Morris 
Author-Name: Alistair McGuire 
Author-X-Name-First: Alistair 
Author-X-Name-Last: McGuire 
Title: The private net present value and private internal rate of return to becoming a nurse in Great Britain 
Abstract:
  The private net present value and private internal rate of return to
 becoming a nurse in Great Britain is estimated. The calculations are made
 using the standard equations inputted with data from the New Earnings
 Survey and the British Household Panel Survey. Basic age-earnings profiles
 are adjusted for mortality, unemployment, other causes of economic
 inactivity, and discontinuation from training. The conclusions are that:
 (1) there is a high private internal rate of return to becoming a nurse in
 Great Britain relative to other occupations; (2) using the internal rate
 of return criterion is inappropriate when there exists a crossover
 marginal time preference rate, which is shown to be the case here; and,
 (3) using the net present value criterion there are net financial benefits
 to becoming a nurse in Great Britain for individuals with a marginal time
 preference rate of 8-13% or more. 
Journal: Applied Economics 
Pages: 2189-2200 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210139328 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2189-2200




Template-Type: ReDIF-Article 1.0
Author-Name: M. Camarero 
Author-X-Name-First: M. 
Author-X-Name-Last: Camarero 
Author-Name: J. Ordonez 
Author-X-Name-First: J. 
Author-X-Name-Last: Ordonez 
Author-Name: C. R. Tamarit 
Author-X-Name-First: C. R. 
Author-X-Name-Last: Tamarit 
Title: Monetary transmission in Spain: a structural cointegrated VAR approach 
Abstract:
  This paper analyses the monetary policy channels in Spain using a
 cointegrated structural VAR approach which explicitly accounts for
 endogenous policy reactions in a small open economy. Evidence is found of
 one cointegrating relation which is identified as a long-run money demand
 function. In addition, stability tests are applied to this relationship to
 assess whether there has been a change of monetary regime. The
 impulse-responses for the non-monetary shocks as well as the absence of
 the puzzles traditionally found in the empirical literature, suggest that
 the model specification identifies the monetary policy shocks correctly.
 Thus, according to our results, a monetary contraction causes a weak
 downward response in the price level, as well as an increase in both short
 and long-run nominal interest rates, a decrease in aggregate output and an
 exchange rate appreciation. 
Journal: Applied Economics 
Pages: 2201-2212 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210138419 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138419 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2201-2212




Template-Type: ReDIF-Article 1.0
Author-Name: Vittoria Cerasi 
Author-X-Name-First: Vittoria 
Author-X-Name-Last: Cerasi 
Author-Name: Barbara Chizzolini 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Chizzolini 
Author-Name: Marc Ivaldi 
Author-X-Name-First: Marc 
Author-X-Name-Last: Ivaldi 
Title: Branching and competition in the European banking industry 
Abstract:
  In this study branching costs and competitiveness of European banks are
 measured by fitting a monopolistic competition model to a representative
 sample drawn from nine EEC banking industries in the period from 1990 to
 1996. In the theoretical model, banks decide strategically the size of
 their branching network anticipating the degree of competition faced on
 interest rates. From the structural equations of the model an econometric
 test is derived in order to measure branching costs and degree of
 competition in banking services. The empirical analysis captures their
 changing over time together with the impact of various European directives
 aiming at deregulating the banking industry. Furthermore the study shows
 persistence of segmentation acoss EEC banking industries. 
Journal: Applied Economics 
Pages: 2213-2225 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210138392 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138392 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2213-2225




Template-Type: ReDIF-Article 1.0
Author-Name: B. Andreosso-O'Callaghan 
Author-X-Name-First: B. 
Author-X-Name-Last: Andreosso-O'Callaghan 
Author-Name: Guoqiang Yue 
Author-X-Name-First: Guoqiang 
Author-X-Name-Last: Yue 
Title: Sources of output change in China: 1987-1997: application of a structural decomposition analysis 
Abstract:
  Since the beginning of the economic reforms implemented in the industrial
 sectors of China, the economy has grown and changed rapidly. The high GDP
 growth rates recorded since 1985 have stimulated unprecedented changes in
 the economic structure of this developing economy. The major causes of the
 changes are: the increase in consumption and investment, production
 technological change and trade. The objective was to analyse this type of
 structural change, and to explore the sources of economic growth during
 the period 1987-1997, by using the method of structural decomposition
 analysis (SDA). The chosen SDA method, based on the comparison between two
 input-output tables, allowed us to decompose each sector's and industry's
 output growth; it enabled the relative impact of final demand and
 technological change of each industry on overall growthto be measured. 
Journal: Applied Economics 
Pages: 2227-2237 
Issue: 17 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210139346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2227-2237




Template-Type: ReDIF-Article 1.0
Author-Name: Yin-Wong Cheung 
Author-X-Name-First: Yin-Wong 
Author-X-Name-Last: Cheung 
Author-Name: Frank Westermann 
Author-X-Name-First: Frank 
Author-X-Name-Last: Westermann 
Title: Output dynamics of the G7 countries--stochastic trends and cyclical movements 
Abstract:
  Using a time series framework, the paper studies the interactions of the
 annual real per capita GDP data of the G7 countries. Evidence is found of
 six common nonstationary processes behind the international output
 dynamics. In addition, there is evidence for the existence of a common
 business cycle among these countries. The trend and cycle components of
 each output series are obtained with a procedure that accounts for the
 presence of both the common nonstationary and cyclical factors. It is
 found that the relative variability and the correlation of the trend and
 cycle components are not similar across the G7 countries. 
Journal: Applied Economics 
Pages: 2239-2247 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210150866 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210150866 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2239-2247




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Title: Does black market exchange rate volatility deter the trade flows? Iranian experience 
Abstract:
  Previous studies that investigated the impact of exchange rate volatility
 on the trade flows, employed official exchange rate data to construct a
 measure of exchange rate uncertainty. In this paper we show that in
 countries that there is a black market for foreign exchange, the black
 market exchange rate volatility could have adverse effect on the trade
 flows. We show this by using data from Iran and cointegration analysis. 
Journal: Applied Economics 
Pages: 2249-2255 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210138455 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138455 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2249-2255




Template-Type: ReDIF-Article 1.0
Author-Name: L. C. Gasparini 
Author-X-Name-First: L. C. 
Author-X-Name-Last: Gasparini 
Title: Microeconometric decompositions of aggregate variables: an application to labour informality in Argentina 
Abstract:
  This article illustrates the use of microeconometric decomposition
 techniques to characterize changes in aggregate variables. In particular,
 it studies the effect of changes in the employment structure on the labour
 informality rate for salaried workers in the greater Buenos Aires area
 (Argentina). To that aim it computes the difference between the
 informality rate at moment t and the rate that results from combining the
 population at moment t with the parameters estimated at moment t that link
 observable individual characteristics to the informality decision. The
 article concludes that the deep change of the employment structure in
 Argentina during the 1980s and the 1990s has had a significant but minor
 effect on the labour informality rate. 
Journal: Applied Economics 
Pages: 2257-2266 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210127231 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210127231 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2257-2266




Template-Type: ReDIF-Article 1.0
Author-Name: J. Ruiz-Castillo 
Author-X-Name-First: J. 
Author-X-Name-Last: Ruiz-Castillo 
Author-Name: E. Ley 
Author-X-Name-First: E. 
Author-X-Name-Last: Ley 
Author-Name: M. Izquierdo 
Author-X-Name-First: M. 
Author-X-Name-Last: Izquierdo 
Title: The Laspeyres bias in the Spanish consumer price index 
Abstract:
  The CPI compares the cost of acquiring a reference quantity vector at
 current and base prices. Such reference vector is the vector of mean
 quantities actually bought by a reference population, whose consumption
 patterns are investigated during a period &#x3c4; prior to the index base
 period 0. This paper shows that unless the price change between these two
 dates is taken into account, the CPI ceases to be a proper statistical
 price index of the Laspeyres type. Among several negative consequences,
 the most important is that this omission produces a bias in the
 measurement of inflation: the 'Laspeyres bias'. Using Spanish data, the
 size of the Laspeyres bias is estimated at -0.061% per year, during
 1992-1998. The Laspeyres bias in shorter time periods reached -0.122% per
 year in 1992, and -0.108 in 1997. 
Journal: Applied Economics 
Pages: 2267-2276 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210138428 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138428 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2267-2276




Template-Type: ReDIF-Article 1.0
Author-Name: Param Silvapulle 
Author-X-Name-First: Param 
Author-X-Name-Last: Silvapulle 
Author-Name: Ramya Hewarathna 
Author-X-Name-First: Ramya 
Author-X-Name-Last: Hewarathna 
Title: Robust estimation and inflation forecasting 
Abstract:
  This paper considers various models emerging from the Fisher effect
 and/or the term structure of interest rates for inflation forecasting.
 This paper, it is believed, makes a contribution to the literature on
 estimation of the models by using a procedure that is robust for
 non-normal errors, improving the efficiency of the estimates considerably.
 The Consumer Price Index series, 90 days and 180 days Australian
 bank-accepted bill rates, covering the sample period 1968Q1 to 1998Q4 were
 used in this study. Contrary to earlier findings, strong evidence was
 documented supporting the Fisher effect in the presence of a structural
 break with the break-point being at 1980Q1. The overall results suggest
 that the error correction model of the Fisher effect, the term structure
 of interest rates and short-run dynamics produce superior forecasts, in
 particular when the models were estimated using the robust method. These
 findings have important implications for economic policy analysis. 
Journal: Applied Economics 
Pages: 2277-2282 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210138446 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138446 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2277-2282




Template-Type: ReDIF-Article 1.0
Author-Name: W. N. W. Azman-Saini 
Author-X-Name-First: W. N. W. 
Author-X-Name-Last: Azman-Saini 
Author-Name: M. Azali 
Author-X-Name-First: M. 
Author-X-Name-Last: Azali 
Author-Name: M. S. Habibullah 
Author-X-Name-First: M. S. 
Author-X-Name-Last: Habibullah 
Author-Name: K. G. Matthews 
Author-X-Name-First: K. G. 
Author-X-Name-Last: Matthews 
Title: Financial integration and the ASEAN-5 equity markets 
Abstract:
  The existence of long-run relationships among the ASEAN-5 equity markets
 is empirically investigated. This study utilized weekly data spanning
 January 1988 to August 1999. The results of Granger noncausality test due
 to Toda and Yamamoto (Journal of Econometrics,66, 225-50, 1995) reveal
 that the Singapore equity market was not affected by other markets except
 by the Philippines in the long run. This result shows that there exist
 opportunities for beneficial international portfolio diversification
 within the context of the Asean-5 equity markets. 
Journal: Applied Economics 
Pages: 2283-2288 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210139364 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139364 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2283-2288




Template-Type: ReDIF-Article 1.0
Author-Name: Canan Yildirim 
Author-X-Name-First: Canan 
Author-X-Name-Last: Yildirim 
Title: Evolution of banking efficiency within an unstable macroeconomic environment: the case of Turkish commercial banks 
Abstract:
  This paper analyses the efficiency performance of the Turkish banking
 sector between 1988 and 1999, a period characterized by increasing
 macroeconomic instability. The technical and scale efficiencies of Turkish
 commercial banks are measured with the use of nonparametric Data
 Envelopment Analysis. The empirical results suggest that over the sample
 period both pure technical and scale efficiency measures show a great
 variation and the sector did not achieve sustained efficiency gains. It is
 also reported that the sector suffers mainly from scale inefficiency and
 scale inefficiency, in turn, is due to decreasing returns to scale. There
 are also reported differences in the efficiency performance of commercial
 banks with different ownership status. In addition, the relationships
 between profitability, asset quality, size and the two definitions of
 efficiency are considered. Efficient banks are more profitable, and pure
 technical efficiency and scale inefficiency are positively related to
 size. The trend in the performance levels over the period suggests that
 macroeconomic conditions had a profound influence on the efficiency
 measures. 
Journal: Applied Economics 
Pages: 2289-2301 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210140146 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210140146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2289-2301




Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Chuan Chen 
Author-X-Name-First: Hui-Chuan 
Author-X-Name-Last: Chen 
Title: Taiwan's exports and trade imbalance against US and Japan: an empirical investigation based on error correction model 
Abstract:
  This study employs recent advances in time-series analysis, cointegration
 and error correction model, to examine the long-run and short-run
 determinants of the exports and trade imbalance between the USA, Japan,
 and Taiwan. The unit root tests reveal nonstationary in most of the
 variables. The cointegration tests affirm positive the long-run
 associations are between the exchange rate changes and the exports as well
 as the trade imbalance. Once these long-run effects are accounted for, it
 is found that there are evidences of short-run relationship between these
 variables. 
Journal: Applied Economics 
Pages: 2303-2309 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210141695 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210141695 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2303-2309




Template-Type: ReDIF-Article 1.0
Author-Name: Shao-Hsun Keng 
Author-X-Name-First: Shao-Hsun 
Author-X-Name-Last: Keng 
Author-Name: Steven Garasky 
Author-X-Name-First: Steven 
Author-X-Name-Last: Garasky 
Author-Name: Helen Jensen 
Author-X-Name-First: Helen 
Author-X-Name-Last: Jensen 
Title: Welfare dependence and recidivism in an era of welfare reform 
Abstract:
  This study examines the dynamics of welfare programme participation
 during the initial period (1993-1995) of programme reforms at the
 state-level in Iowa. The programme changes for the state were remarkably
 similar to the national reforms implemented in the USA in 1996. Analysis
 of the Family Investment Program (FIP) participation over the programme's
 first two years show that, on average, recipients stayed fewer months in
 the second year compared with the first, although a relatively large share
 of participants (36%) stayed on for the full two years. Fixed effect and
 semiparametric duration models are used to examine welfare dependence and
 recidivism, respectively. Results indicate that income from wages and
 child support are significant factors in reducing welfare participation.
 Child support and wage income are crucial in determining the chances of
 exiting and of staying off the programme, especially during the early
 months of the exit. 
Journal: Applied Economics 
Pages: 2311-2323 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210143080 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210143080 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2311-2323




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Strazicich 
Author-X-Name-First: Mark 
Author-X-Name-Last: Strazicich 
Title: International evidence of tax smoothing in a panel of industrial countries 
Abstract:
  A panel of industrial countries is examined for evidence of 'tax
 smoothing'. Tax smoothing results when governments minimize tax
 distortions over time. The model provides a positive theory of government
 debt and is due primarily to Barro. Unit root tests are performed in panel
 data to test the null hypothesis of nonstationary tax rates. Panel
 regressions are then undertaken to test the null hypothesis that tax rate
 changes are unpredictable and test for evidence of an alternative
 hypothesis. Political and economic variables are examined for their
 ability to predict tax rate changes. Overall, the results cannot reject
 the null hypotheses and support tax smoothing by national governments. 
Journal: Applied Economics 
Pages: 2325-2331 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210143107 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210143107 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2325-2331




Template-Type: ReDIF-Article 1.0
Author-Name: George Davis 
Author-X-Name-First: George 
Author-X-Name-Last: Davis 
Author-Name: Bryce Kanago 
Author-X-Name-First: Bryce 
Author-X-Name-Last: Kanago 
Title: The contemporaneous correlation between price shocks and output shocks 
Abstract:
  Until the 1990s, prices were believed to be procyclical. Several
 researchers have since presented evidence of counter-cyclical prices. This
 evidence proved robust, but its interpretation has varied. Some have
 argued that the contemporaneous correlation between output and prices
 reflects both the source of the current shock and the adjustment process
 from short-run to long-run equilibrium; the adjustment to the long run
 imparts a bias towards a negative price-output correlation. The issue of
 dynamics is addressed by estimating price shocks and output shocks. The
 sign of the correlation between these shocks does not reveal anything
 about the relative importance or frequency of demand versus supply shocks;
 however, some understanding is gained from the time-series of the product
 of the shocks. In periods when the product is negative, supply shocks must
 have been either relatively large or relatively important. In periods when
 the product is positive, demand shocks must have been either relatively
 large or relatively important. The data suggest that the economies of the
 USA, Canada and the UK were buffeted by both demand and supply shocks in
 about equal portions. 
Journal: Applied Economics 
Pages: 2333-2339 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210147130 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210147130 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2333-2339




Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Hollingsworth 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Hollingsworth 
Author-Name: Anthony Harris 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Harris 
Author-Name: Elena Gospodarevskaya 
Author-X-Name-First: Elena 
Author-X-Name-Last: Gospodarevskaya 
Title: The efficiency of immunization of infants by local government 
Abstract:
  The paper makes use of data envelopment analysis (DEA) to measure the
 cost and production efficiency of local government programmemes for
 childhood immunization in urban and rural settings in Australia. Model
 specification is tested for validity, methods are used for ranking
 efficient units and advanced statistical methods are used to establish
 confidence intervals around the efficiency estimates. Given the small data
 set, the cost and production models are valid, and it is concluded that
 while neither urban nor rural programmes are particularly efficient, there
 is more room for improvement in rural programmes. Ways of changing methods
 of delivery are suggested which may increase efficiency. 
Journal: Applied Economics 
Pages: 2341-2345 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210147158 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210147158 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2341-2345




Template-Type: ReDIF-Article 1.0
Author-Name: David Giles 
Author-X-Name-First: David 
Author-X-Name-Last: Giles 
Author-Name: Lindsay Tedds 
Author-X-Name-First: Lindsay 
Author-X-Name-Last: Tedds 
Author-Name: Gugsa Werkneh 
Author-X-Name-First: Gugsa 
Author-X-Name-Last: Werkneh 
Title: The Canadian underground and measured economies: Granger causality results 
Abstract:
  Using new time-series data for the size of the Canadian underground
 economy, the relationship between unreported and measured GDP in that
 country is examined. Granger causality tests are conducted, with a proper
 allowance for the non-stationarity of the data. It is found that there is
 clear evidence of such causality from measured GDP to 'hidden' output, but
 only very mild evidence of Granger causality in the reverse direction.
 This result supports similar evidence for New Zealand reported by the
 first author, and has several interesting policy implications. 
Journal: Applied Economics 
Pages: 2347-2352 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210148021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2347-2352




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brooks 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brooks 
Author-Name: Robert Faff 
Author-X-Name-First: Robert 
Author-X-Name-Last: Faff 
Author-Name: David Sokulsky 
Author-X-Name-First: David 
Author-X-Name-Last: Sokulsky 
Title: An ordered response model of test cricket performance 
Abstract:
  The paper analyses the prediction of test cricket outcomes using an
 ordered response model. The results, based on data over the period 1994 to
 1999, suggest that the ordered categorized production outcome of test
 cricket (win, draw, loss) can be explained by simple measures of the
 batting and bowling labour inputs. For example, across all countries the
 model correctly predicts 71% of test cricket outcomes. Further, it is
 found that losses are correctly predicted most often at 81% of the sample
 but that the model faces its biggest challenge predicting test match
 draws-only getting 57% of these cases correct. Also analysed are the
 circumstances in which the model produces incorrect predictions and it is
 found that the most common events are unsuccessful last innings runs
 chases; successful last innings runs chases and rain-affected matches. An
 analysis of failed model predictions in terms of country factors suggests
 that (relative to all other countries) Pakistan has a higher tendency to
 be involved in such matches, whereas Sri Lanka has a higher tendency to be
 involved in matches that are 'predictable'. A 'style' analysis using this
 model suggests that five test cricket styles are evident. Style I is that
 of 'Bowling and Batting Performance' and describes Pakistan, the West
 Indies and (perhaps to a lesser extent) Zimbabwe. Style II is that of
 'Batting Performance' and describes England, New Zealand and (perhaps to a
 lesser extent) India. Style III is 'Bowling Performance' and describes
 Australia. Style IV is 'Bowling Performance/Batting Strike Rate' and
 describes South Africa. Finally, Style V is 'Bowling Performance and
 Strike Rate' and describes Sri Lanka. Finally, the model is used to
 analyse which country can claim to be the world champions of test cricket
 over the sample period. In an initial analysis based on average
 performance over this period, South Africa has the best claim. However, in
 a 'heavyweight title' contest between South Africa and Australia,
 Australia has the superior claim. 
Journal: Applied Economics 
Pages: 2353-2365 
Issue: 18 
Volume: 34 
Year: 2002 
X-DOI: 10.1080/00036840210148085 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148085 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2353-2365




Template-Type: ReDIF-Article 1.0
Author-Name: H. N. E. BystrOm 
Author-X-Name-First: H. N. E. 
Author-X-Name-Last: BystrOm 
Title: The hedging performance of electricity futures on the Nordic power exchange 
Abstract:
  The Nordic Power Exchange (Nord Pool), the first multinational exchange
 for electricity trading, has existed since January 1996. Spot and futures
 contracts are traded on this exchange and its typical characteristics are
 very high volatilities as well as non-normally distributed returns. This
 article looks at electricity futures and how they can be used for
 short-term hedging of positions taken in the spot market. It studies the
 minimum variance hedge ratio and how it can be estimated in different
 ways. The traditional naive hedge and the OLS hedge are compared
 out-of-sample to more elaborate moving average and GARCH hedges, and the
 empirical results indicate some gains from hedging with futures despite
 the lack of straight-forward arbitrage possibilities in the electricity
 market. Furthermore, we find a slightly better performance of the simple
 OLS hedge compared to the conditional hedges. 
Journal: Applied Economics 
Pages: 1-11 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210138365 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138365 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:1-11




Template-Type: ReDIF-Article 1.0
Author-Name: Charles DeLorme 
Author-X-Name-First: Charles 
Author-X-Name-Last: DeLorme 
Author-Name: Peter Klein 
Author-X-Name-First: Peter 
Author-X-Name-Last: Klein 
Author-Name: David Kamerschen 
Author-X-Name-First: David 
Author-X-Name-Last: Kamerschen 
Author-Name: Lisa Ford Voeks 
Author-X-Name-First: Lisa Ford 
Author-X-Name-Last: Voeks 
Title: Structure, conduct and performance: a simultaneous equations approach 
Abstract:
  A simultaneous-equations framework is used to study the relationship
 between structure, conduct, and performance in US manufacturing in the
 1980s and 1990s. The paper expands on earlier
 structure-conduct-performance studies by using a lag structure to signify
 that structure, conduct and performance do not affect one another
 contemporaneously. Findings support some aspects of the traditional
 structure-conduct-performance model, but challenge others. First, the data
 suggest that industry structure does not depend on current industry
 performance. Second, little evidence is found that industry conduct,
 proxied by advertising, is affected by industry structure. Third, results
 show that industry performance does not depend on industry conduct, though
 it is sensitive to industry structure. Thus, the main findings are that
 (1) concentration does not depend on firm profitability, though
 profitability depends on concentration, (2) advertising follows a process
 that is independent of the factors considered here, and (3) advertising
 seems to have no effect on profitability. 
Journal: Applied Economics 
Pages: 13-20 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210147149 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210147149 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:13-20




Template-Type: ReDIF-Article 1.0
Author-Name: M. K. Leung 
Author-X-Name-First: M. K. 
Author-X-Name-Last: Leung 
Author-Name: D. Rigby 
Author-X-Name-First: D. 
Author-X-Name-Last: Rigby 
Author-Name: T. Young 
Author-X-Name-First: T. 
Author-X-Name-Last: Young 
Title: Entry of foreign banks in the People's Republic of China: a survival analysis 
Abstract:
  This study uses survival analysis to examine the factors determining the
 decision of a foreign bank to establish a branch in the PRC. Bank size and
 international diversification are found to have a significant positive
 impact on the probability of entry. Banks from Asia have particular
 cultural and locational advantages in this context and are found to be
 more likely to enter this market. Market conditions in the host economy,
 exemplified by an improved political environment and increasing levels of
 international trade, are also found to be significant determinants of the
 timing of entry. Access to China's banking sector will increase upon entry
 to the WTO and again cultural links and location are likely to play a key
 role for foreign entrants, particularly for those operating in local
 currency markets. 
Journal: Applied Economics 
Pages: 21-31 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210148030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148030 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:21-31




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Lucke 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Lucke 
Title: Are technical trading rules profitable? Evidence for head-and-shoulder rules 
Abstract:
  The profitability of chartist trading rules on foreign exchange markets
 is still under debate. Since simple technical trading rules may not
 adequately capture the complex phenomenon of chartist trading, this study
 focuses on the prominent head-and-shoulder pattern as a representative
 trading rule which incorporates various 'technical' ideas such as smoothed
 trends, trend reversal, resistance levels, and volatility clustering. For
 various combinations of the building blocks of head-and-shoulder
 definitions the result is generally negative: Returns to head-and-shoulder
 trading rules are not significantly positive - and if there is any
 evidence for non-zero returns at all, then it is evidence for negative
 returns. 
Journal: Applied Economics 
Pages: 33-40 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210150884 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210150884 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:33-40




Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsson 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Carlsson 
Title: The demand for intercity public transport: the case of business passengers 
Abstract:
  Using a stated preference survey on business passengers travelling by
 rail or air between the two largest cities in Sweden, business passengers'
 preferences for different modes of transport and their corresponding
 attributes are investigated. Compared to what previous studies have found,
 the values put on attributes are very high, this including the
 environmental impact of the modes. This is largely explained by the fact
 that business passengers do not bear the cost of the trip, but still have
 the possibility of deciding the mode of transport. The usefulness of a
 more flexible specification of the demand for transport is explored using
 a random parameter logit model. It is found that there is a gain in using
 a random parameter model compared to a standard logit model, in the sense
 that it provides richer information about passengers' preferences.
 However, no consistent pattern is found in the differences in willingness
 to pay for attributes between the econometric specifications. 
Journal: Applied Economics 
Pages: 41-50 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210158921 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210158921 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:41-50




Template-Type: ReDIF-Article 1.0
Author-Name: Rakesh Bali 
Author-X-Name-First: Rakesh 
Author-X-Name-Last: Bali 
Title: An empirical analysis of stock returns around dividend changes 
Abstract:
  This paper documents significant drift in stock returns following
 announcements of changes in cash dividends. The magnitude is (i) smaller
 for increases than for decreases, (ii) inversely related to firm size and
 positively to dividend yield change, and (iii) concentrated in the first
 quarter. Beta changes do not explain the drift and it is robust in various
 subperiods. Next it is shown that dividend increases are positively
 autocorrelated especially every fourth quarter. The prices keep reacting
 to future announcements as if the market ignores these autocorrelations.
 Dividend decreases exhibit weak autocorrelation and the returns are
 negative for the following three announcements. 
Journal: Applied Economics 
Pages: 51-61 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684020158930 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684020158930 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:51-61




Template-Type: ReDIF-Article 1.0
Author-Name: Ikerne Del Valle 
Author-X-Name-First: Ikerne Del 
Author-X-Name-Last: Valle 
Author-Name: Inmaculada Astorkiza 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Astorkiza 
Author-Name: Kepa Astorkiza 
Author-X-Name-First: Kepa 
Author-X-Name-Last: Astorkiza 
Title: Fishing effort validation and substitution possibilities among components: the case study of the VIII division European anchovy fishery 
Abstract:
  Command and control regulation programmes, particularly input
 constraints, typically fail to achieve stated objectives, because
 fishermen may substitute unregulated for regulated inputs. It is, thus,
 essential to have an understanding of the internal structure of production
 technology. A primal formulation is used to estimate a translog production
 function at the vessels level that includes fishing effort and fisherman's
 skill. The flexibility of the selected functional permits the analysis of
 the substitution possibilities among inputs by estimating the elasticity
 of substitution with no prior constraints. Particular attention is paid to
 the empirical validation of fishing effort as an aggregate input, which
 implies either, the acceptance of the joint hypothesis that inputs making
 up effort are weakly separable from the inputs out of the subgroup or
 considering that effort is an intermediate input produced by a
 non-separable two stage technology. Cross-sectional data from the Spanish
 purse seine fleet operating in the VIII Division European anchovy fishery
 provide evidence of limited input substitution possibilities among the
 inputs making up the empirically validated fishing effort translog
 micro-production function. 
Journal: Applied Economics 
Pages: 63-77 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210158949 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210158949 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:63-77




Template-Type: ReDIF-Article 1.0
Author-Name: Paola Caselli 
Author-X-Name-First: Paola 
Author-X-Name-Last: Caselli 
Author-Name: Patrizio Pagano 
Author-X-Name-First: Patrizio 
Author-X-Name-Last: Pagano 
Author-Name: Fabiano Schivardi 
Author-X-Name-First: Fabiano 
Author-X-Name-Last: Schivardi 
Title: Uncertainty and the slowdown of capital accumulation in Europe 
Abstract:
  The slowdown in the process of capital formation in continental Europe in
 the 1990s is analysed. Sector-level data from the OECD's International
 Sectoral Data Base (ISDB) are used. Econometric estimates of an investment
 function indicate structural instability in the early 1990s and,
 specifically, a break in the coefficient linking the growth of capital
 stock to demand. This result neither seems to be related to
 non-linearities in the relationship between capital formation and expected
 demand, nor to the sectoral composition of European economies. Evidence is
 found that the drop in the accelerator is at least partly attributable to
 greater demand uncertainty in the 1990s as compared with the earlier
 period. 
Journal: Applied Economics 
Pages: 79-89 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210158958 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210158958 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:79-89




Template-Type: ReDIF-Article 1.0
Author-Name: Haiwei Chen 
Author-X-Name-First: Haiwei 
Author-X-Name-Last: Chen 
Author-Name: Honghui Chen 
Author-X-Name-First: Honghui 
Author-X-Name-Last: Chen 
Author-Name: Nicholas Valerio 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Valerio 
Title: The effects of trading halts on price discovery for NYSE stocks 
Abstract:
  This article uses intraday data for the year 1992 to investigate the
 effect of trading halts on price discovery for stocks traded on the New
 York Stock Exchange. The results show that the degree of benefits from
 trading halts depends on the types of halts and significance of the news
 items. It is found that trading halts reduce price dispersion when trading
 is halted due to imbalance in order flows. Such a positive effect is
 robust to the significance of news items. Trading halts can help price
 discovery when trading is halted due to the fact that some significant
 news items already hit the market and investors need more time to digest
 the impacts on price. In contrast, when officials call for the halt due to
 the pending news release with little significance, trading halts actually
 inject more noise into the prices and undermine the price discovery
 process. Overall, the results are consistent with the argument by
 exchanges that trading halts help dissipate information and facilitate the
 price discovery process. 
Journal: Applied Economics 
Pages: 91-97 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210161846 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161846 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:91-97




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Title: Savings and investment in Australia 
Abstract:
  It has become popular to advocate tax reduction on the basis of promoting
 savings, investment and ultimately economic growth. The linkage between
 the variables is argued by various neoclassical growth models and is
 further suggested by recent studies which highlight the close association
 between domestic saving and investment rates. The close association may
 allow for polices which alter domestic saving levels in order to alter
 domestic investment levels. This interpretation, however, presumes an
 endogenous investment response. Equally likely, theoretically, is that the
 close association is maintained by movements in national savings. The
 present paper explicitly examines the endogeneity of the Australian saving
 and investment rates. The results highlight the exogeneity of investment.
 The results further suggest an endogenous response on the part of
 Australia's saving rate. The results may limit the potential benefits of
 these tax changes. 
Journal: Applied Economics 
Pages: 99-106 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015928 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015928 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:99-106




Template-Type: ReDIF-Article 1.0
Author-Name: A. Calza 
Author-X-Name-First: A. 
Author-X-Name-Last: Calza 
Author-Name: C. Gartner 
Author-X-Name-First: C. 
Author-X-Name-Last: Gartner 
Author-Name: J. Sousa 
Author-X-Name-First: J. 
Author-X-Name-Last: Sousa 
Title: Modelling the demand for loans to the private sector in the euro area 
Abstract:
  This article studies the determinants of loans to the private sector in
 the euro area. Using the Johansen methodology, the study identifies one
 cointegrating relationship linking real loans, GDP and interest rates.
 This relationship implies that in the long-run real loans are positively
 related to real GDP and negatively to real short-term and long-term
 interest rates. Both the signs and the magnitude of the coefficients
 suggest that the cointegrating vector describes a long-run demand
 equation. The short-run dynamics of the demand for euro area real loans is
 subsequently modelled by means of a Vector Error Correction Model (VECM).
 A number of specification tests performed on the VECM produce satisfactory
 results, with tests of stability of the model parameters showing no signs
 of structural breaks during the sample period (1980: 1-1999: 2). All of
 this suggests that developments in real loans to the private sector in the
 euro area can be reasonably explained by the model. 
Journal: Applied Economics 
Pages: 107-117 
Issue: 1 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210161837 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161837 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:107-117




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gil-Alana 
Title: Strong dependence in the real interest rates 
Abstract:
  The stochastic behaviour of the real interest rates in ten European
 countries, Canada and the US is examined in this article by means of
 fractionally integrated techniques. Using a procedure, specifically
 designed for testing I (d) statistical models, the results show that the
 real interest rates are more persistent in some countries like France,
 Belgium or the USA than in others like the UK or Germany. 
Journal: Applied Economics 
Pages: 119-124 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210161855 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161855 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:119-124




Template-Type: ReDIF-Article 1.0
Author-Name: Priniti Panday 
Author-X-Name-First: Priniti 
Author-X-Name-Last: Panday 
Title: Incidence theory and the shifting of protection across sectors: the South Asian experience 
Abstract:
  Using the theoretical framework of a simple general equilibrium model,
 this paper examines whether strategies aimed at protecting or promoting
 manufacturing industries indirectly taxed the agricultural and service
 sectors. A panel data set consisting of five South Asian countries over a
 26 year time period is employed in the analysis. Three different
 estimation procedures are used to account for factors that are country
 specific and those that are common to all countries. The results indicate
 that the agricultural sector indirectly felt the brunt of the net
 protection provided to manufactures due to the 'shifting of protection'
 across sectors. The service sector, on the other hand, indirectly
 benefited from the general equilibrium spillover effects. 
Journal: Applied Economics 
Pages: 125-132 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015892 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015892 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:125-132




Template-Type: ReDIF-Article 1.0
Author-Name: Elisabetta Strazzera 
Author-X-Name-First: Elisabetta 
Author-X-Name-Last: Strazzera 
Author-Name: Riccardo Scarpa 
Author-X-Name-First: Riccardo 
Author-X-Name-Last: Scarpa 
Author-Name: Pinuccia Calia 
Author-X-Name-First: Pinuccia 
Author-X-Name-Last: Calia 
Author-Name: Guy Garrod 
Author-X-Name-First: Guy 
Author-X-Name-Last: Garrod 
Author-Name: Kenneth Willis 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Willis 
Title: Modelling zero values and protest responses in contingent valuation surveys 
Abstract:
  In contingent valuation surveys the category of zero bidders refers to
 individuals that are not willing to pay anything for the programme under
 analysis. Specific questions can help to identify true zero values, coming
 from people that are indifferent to the programme, separately from protest
 responses: the latter are generally excluded from the analysis. This paper
 introduces a mixture-sample selection model that takes into account both
 zero values and protest responses in the estimates. The model is applied
 to the valuation of a traffic calming scheme aimed at reducing risks for
 residents in three villages in the north-east of England. 
Journal: Applied Economics 
Pages: 133-138 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015900 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015900 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:133-138




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Title: Monetary dynamics: a market approach 
Abstract:
  The behaviour of the short-run responses implied by the identification of
 a long-run money demand relationship is examined. These responses have
 recently been interpreted as representing the policy stance of the
 monetary authority. However, as movements in the monetary aggregate
 reflect both demand and supply adjustments, estimating the short-run
 dynamics solely within the money demand relationship may produce biased
 results. In order to address this issue, the paper explicitly acknowledges
 the importance of the supply of money function by including the function
 alongside the demand for money function. While the interaction of the two
 equations continues to produce the long-run quantity theory result, the
 additional detail provides more accurate estimates of the individual
 short-run adjustments within the two equations. 
Journal: Applied Economics 
Pages: 139-152 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015955 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015955 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:139-152




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Giannakas 
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Giannakas 
Author-Name: Kien Tran 
Author-X-Name-First: Kien 
Author-X-Name-Last: Tran 
Author-Name: Vangelis Tzouvelekas 
Author-X-Name-First: Vangelis 
Author-X-Name-Last: Tzouvelekas 
Title: Predicting technical effciency in stochastic production frontier models in the presence of misspecification: a Monte-Carlo analysis 
Abstract:
  This paper provides a theoretical explanation for the sensitivity of
 technical efficiency measures to the choice of functional specification in
 stochastic production frontier models. It is shown that inappropriate
 functional specifications translate into a misspecification in the
 conditional mean of the stochastic frontier regression model. This
 misspecification, in turn, results in estimates of technical efficiency,
 confidence intervals and production elasticities being biased, even
 asymptotically. Monte-Carlo simulations reveal that the severity of the
 bias depends on the functional specification and the percentage
 contribution of the variance of technical inefficiency to the total
 variance of the composed errors. 
Journal: Applied Economics 
Pages: 153-161 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015964 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015964 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:153-161




Template-Type: ReDIF-Article 1.0
Author-Name: David Harvey 
Author-X-Name-First: David 
Author-X-Name-Last: Harvey 
Author-Name: Stephen Leybourne 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Leybourne 
Author-Name: Paul Newbold 
Author-X-Name-First: Paul 
Author-X-Name-Last: Newbold 
Title: How great are the great ratios? 
Abstract:
  The balanced growth and neoclassical stochastic growth literatures imply
 stationarity of certain macroeconomic 'great ratios'. Four such ratios are
 considered: consumption:output, investment:output, the real interest rate
 and real money supply growth, and evidence for ratio stationarity in the
 G7 countries is examined. Univariate unit root and stationarity tests are
 performed, and analysis of the cointegrating relations between output,
 consumption and investment is conducted. Almost no evidence of
 stationarity is found for the consumption:output and investment:output
 great ratios. Empirical evidence supports real money supply growth
 stationarity, but is more mixed for the real interest rate. 
Journal: Applied Economics 
Pages: 163-177 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015865 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015865 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:163-177




Template-Type: ReDIF-Article 1.0
Author-Name: P. A. Scuffham 
Author-X-Name-First: P. A. 
Author-X-Name-Last: Scuffham 
Title: Economic factors and traffic crashes in New Zealand 
Abstract:
  The aim of this study was to examine the changes in the trend and
 seasonal patterns of fatal crashes in New Zealand in relation to changes
 in economic conditions between 1970 and 1994. The Harvey (Harvey and
 Durbin, Journal of the Royal Statistical Society, 149 (3), 187-227, 1986)
 Structural Time Series Model (STSM), an 'unobserved components' class of
 model, was used to estimate the quarterly number of fatal traffic crashes.
 Independent variables included distance travelled, the unemployment rate
 (UER), real gross domestic product per capita (RGDP), the proportion of
 motorcycles, the proportion of young males in the population, alcohol
 consumption per capita, the open road speed limit, and dummy variables for
 the 1973 and 1979 oil crises and seatbelt wearing laws. Distance
 travelled, RGDP, UER, and alcohol consumption per capita were significant
 factors in explaining the short-run dynamics of fatal crashes with the
 effect of RGDP greater than UER. Increases in either RGDP or UER were
 related with decreases in fatal crashes. The STSM is a feasible approach
 to modelling the effect of economic factors on traffic crashes whilst
 accounting for unobserved components. 
Journal: Applied Economics 
Pages: 179-188 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000017566 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000017566 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:179-188




Template-Type: ReDIF-Article 1.0
Author-Name: Maozu Lu 
Author-X-Name-First: Maozu 
Author-X-Name-Last: Lu 
Author-Name: Zhichao Zhang 
Author-X-Name-First: Zhichao 
Author-X-Name-Last: Zhang 
Title: Exchange rate reform and its inflationary consequences: an empirical analysis for China 
Abstract:
  In examining China's exchange rate policy in the reforming years, the
 study finds empirical evidence of its long-run inflationary consequences,
 but the effects appear not to be sizable. In the short run, while changes
 in the devaluation rate are positively correlated with the increase in the
 growth rate of inflation, the inflation inertia is also modest. The
 moderate inflationary cost of devaluations provides some explanation of
 the smooth transition of exchange rate policy regime in China and the
 authorities' ability to put more weight on external competitiveness. 
Journal: Applied Economics 
Pages: 189-199 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000017575 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000017575 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:189-199




Template-Type: ReDIF-Article 1.0
Author-Name: Bradley Ewing 
Author-X-Name-First: Bradley 
Author-X-Name-Last: Ewing 
Author-Name: Shawn Forbes 
Author-X-Name-First: Shawn 
Author-X-Name-Last: Forbes 
Author-Name: James Payne 
Author-X-Name-First: James 
Author-X-Name-Last: Payne 
Title: The effects of macroeconomic shocks on sector-specific returns 
Abstract:
  The reliance on market and sector-specific indexes to evaluate managed
 portfolios and the popularity of index investing has increased the
 importance of understanding what leads to market movements, how long they
 may last, and how different sectors respond to macroeconomic shocks. This
 research is concerned with how shocks to macroeconomic variables affect
 five major S&P sector-specific stock market indexes. The paper employs the
 newly developed econometric technique of generalized impulse response
 analysis. The results identify the various responses of the sectors to
 unanticipated changes in some key macroeconomic variables. Asset prices
 are commonly believed to react sensitively to economic news. Daily
 experience seems to support the view that individual asset prices are
 influenced by a wide variety of unanticipated events and that some events
 have a more pervasive effect on asset prices than do others. (Chen et al.
 1986, p. 386) 
Journal: Applied Economics 
Pages: 201-207 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000018222 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018222 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:201-207




Template-Type: ReDIF-Article 1.0
Author-Name: Justin Tobias 
Author-X-Name-First: Justin 
Author-X-Name-Last: Tobias 
Title: The effects of cognitive ability and high school quality on college entry decisions: nonparametric estimation of parameters of interest 
Abstract:
  The decisions to attend college are analysed and nonparametric
 predictions compared to those obtained from the widely used logit model.
 The impacts of measured cognitive ability and proxies for high school
 quality on the decisions to attend college are examined for a sample of
 white and black males and females from the USA. Two different parameters
 of interest which isolate the effects of ability and high school quality
 on college entry decisions are described and estimated by 'integrating
 out' the effect of other covariates. It is found that measured cognitive
 ability is an extremely important determinant of college entry for all
 race and gender groups. At the same point in the ability distribution,
 blacks are more likely to select into college than whites, and females
 more likely than males of the same racial group. Proxies for high school
 quality such as teacher education, student teacher ratios, school
 enrolment and library size are shown to have little or no effects on the
 likelihood of college entry for all race and gender groups. Further,
 predictions obtained from the flexible nonparametric analysis are found to
 be quite similar to those obtained from the logit model, suggesting that
 simpler fully parametric binary choice models perform quite well as
 modelling college entry decisions. 
Journal: Applied Economics 
Pages: 209-215 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000018231 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018231 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:209-215




Template-Type: ReDIF-Article 1.0
Author-Name: Erdal Ozmen 
Author-X-Name-First: Erdal 
Author-X-Name-Last: Ozmen 
Author-Name: Ka&#x11f;an Parmaksiz 
Author-X-Name-First: Ka&#x11f;an 
Author-X-Name-Last: Parmaksiz 
Title: Exchange rate regimes and the Feldstein-Horioka puzzle: the French evidence 
Abstract:
  This paper investigates whether the Feldstein and Horioka (Economic
 Journal, 90, 314-329, 1980) argument on domestic saving-investment
 relationship is supported by the French data when an endogenous structural
 break corresponding to a major policy regime change is taken into account.
 The evidence suggests that the saving-investment cointegration disappears
 after the estimated endogenous structural break point in 1973 coinciding
 with the end of the Bretton Woods system of fixed exchange rates.
 Consistent with a current account targeting policy, an investment-driven
 saving process appears to be the case for the fixed exchange rate regime
 period. 
Journal: Applied Economics 
Pages: 217-222 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684021000025397 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684021000025397 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:217-222




Template-Type: ReDIF-Article 1.0
Author-Name: Filip Abraham 
Author-X-Name-First: Filip 
Author-X-Name-Last: Abraham 
Author-Name: Ellen Brock 
Author-X-Name-First: Ellen 
Author-X-Name-Last: Brock 
Title: Sectoral employment effects of trade and productivity in Europe 
Abstract:
  The impact of trade and technology in the European case is assessed. A
 framework is developed which incorporates employment effects of (i) export
 expansion (ii) import competition and (iii) labour-saving productivity
 improvements. In this context, evidence is found for the hypothesis that
 international trade induces adjustments in technology. 
Journal: Applied Economics 
Pages: 223-238 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210161828 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161828 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:223-238




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Mirucki 
Author-X-Name-First: Jean 
Author-X-Name-Last: Mirucki 
Title: Assessing editorial preferences towards Industrial Organization articles 
Abstract:
  In order to evaluate the relative importance of articles on Industrial
 Organization published in major generalist or specialized scientific
 journals, this empirical study has used the new 1991 JEL classification
 system, by regrouping contributions according to the type of article:
 theoretical analysis, industrial policy or industry studies. A rate of
 multiple reference index has been introduced to examine the degree of
 relation between these three categories and used as a proxy for editorial
 preferences towards the type of treatment of the subject usually expected
 by the journal. The article contents of nine generalist and five
 specialized journals are analysed for the two periods 1991-1995 and
 1996-2000. 
Journal: Applied Economics 
Pages: 239-243 
Issue: 2 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210155159 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210155159 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:239-243




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Cullinane 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Cullinane 
Author-Name: Dong-Wook Song 
Author-X-Name-First: Dong-Wook 
Author-X-Name-Last: Song 
Title: A stochastic frontier model of the productive efficiency of Korean container terminals 
Abstract:
  A central objective of port privatization and/or deregulation policies is
 stimulating greater efficiency by engendering a more competitive market
 and commercial approach to management. Korea provides a prime example of a
 nation that is implementing such policies. Also, its ports play a pivotal
 role in world shipping, particularly in the ever-burgeoning container
 market. The success of these policies in increasing the productive
 efficiency of Korean container terminals is assessed. The UK container
 terminal sector provides a useful benchmark for comparison since
 privatization and deregulation have formed an integral part of UK port
 reforms for nearly 20 years and the effect on efficiency, having had time
 to mature, will be much easier to gauge. The stochastic frontier model is
 justified as the chosen methodology for estimating productive efficiency
 levels and is applied to cross-sectional data under a variety of
 distributional assumptions. A panel data model is also estimated. Results
 are consistent and suggest (1) The degree of private sector involvement in
 sample container terminals is positively related to productive efficiency
 and (2) Improved productive efficiency has followed the implementation of
 privatization and deregulation policies within the Korean sector. Even
 though not categorical, these conclusions are important because the market
 for container throughput is internationally competitive and if policies
 which promote competition between Korean container terminals lead to
 greater productive efficiency, this will inevitably make the sector as a
 whole more competitive internationally. 
Journal: Applied Economics 
Pages: 251-267 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210139355 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139355 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:251-267




Template-Type: ReDIF-Article 1.0
Author-Name: Thanos Mergoupis 
Author-X-Name-First: Thanos 
Author-X-Name-Last: Mergoupis 
Author-Name: Max Steuer 
Author-X-Name-First: Max 
Author-X-Name-Last: Steuer 
Title: Holiday taking and income 
Abstract:
  This paper is the first attempt to estimate the determinants of
 holiday-taking across several countries. To accomplish this a two-stage
 estimation procedure is employed which enables incongruous income
 categories to be transformed into a single income variable. It is found
 that in the mid-1980s there was a substantial similarity in the holiday
 taking behaviour of Europeans. The large national differences in holiday
 participation are explained by differences in income and demographic
 factors. A remarkable regularity in the responsiveness of the probability
 of holiday taking to marginal changes in income is found. 
Journal: Applied Economics 
Pages: 269-284 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210143071 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210143071 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:269-284




Template-Type: ReDIF-Article 1.0
Author-Name: Yaffa Machnes 
Author-X-Name-First: Yaffa 
Author-X-Name-Last: Machnes 
Title: Changes in mortality: gender and international comparisons 
Abstract:
  Changes in mortality risks are measured according to a statistical
 criterion. This criterion helps to identify the desired reduction in
 age-specific mortality risk. During the last four decades, a survey of 15
 industrialized countries showed that changes in age-specific mortality
 rates pointed towards age groups whose reduction in mortality deviated
 from the optimal shift. Further observations showed consistent differences
 between the different gender groups and also found a country specific
 shift. This research found that richer countries displayed less systematic
 changes. 
Journal: Applied Economics 
Pages: 285-291 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210146672 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210146672 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:285-291




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Richaud 
Author-X-Name-First: Christine 
Author-X-Name-Last: Richaud 
Author-Name: AristomEne Varoudakis 
Author-X-Name-First: AristomEne 
Author-X-Name-Last: Varoudakis 
Author-Name: Marie-Ange VEganzonEs 
Author-X-Name-First: Marie-Ange 
Author-X-Name-Last: VEganzonEs 
Title: Real exchange rate and openness in emerging economies: Argentina in the long run 
Abstract:
  Argentina's economic policies since the beginning of the century, give an
 interesting background to the study of Real Exchange Rate (RER) management
 in emerging countries. In this article, four types of RER overvaluation
 are identified. In the 1920s, Argentina provides a short example of
 overvaluation in a context of a fixed exchange rate policy. Moreover, the
 estimations show that import substitution regimes can lead to a
 misalignment of RER. Argentina illustrates also the difficult management
 of RER in a volatile environment. The results allow, in addition, to
 better understand the failure of the trade liberalization attempts of the
 country and remind that successfully integrating the world economy asks
 for an appropriate RER policy. 
Journal: Applied Economics 
Pages: 293-303 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036846.2003.10106748 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2003.10106748 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:293-303




Template-Type: ReDIF-Article 1.0
Author-Name: Nasiruddin Ahmed 
Author-X-Name-First: Nasiruddin 
Author-X-Name-Last: Ahmed 
Title: Trade liberalization and endogenous growth of manufacturing industries in Bangladesh: an empirical investigation 
Abstract:
  Using the framework of an endogenous growth model, this paper empirically
 analyses the relation between trade policies and industrial growth in
 Bangladesh during the period 1974-1996. The cointegration and error
 correction modelling approaches have been applied. The empirical results
 suggest that there exists a unique cointegral relation between the index
 of industrial production and its major determinants of investment-GDP
 ratio, average share of exports in GDP and secondary school enrolment
 ratio. The short-term dynamic behaviour of Bangladesh's industrial
 production has been investigated by estimating an error correction model
 in which the error correction term has been found to be correctly signed
 and statistically significant. The findings of the study show that
 investment share in GDP, export share in GDP (lagged four quarters),
 secondary school enrolment ratio, and average collection of customs duty
 (lagged six quarters) have all emerged as significant determinants of
 industrial production in Bangladesh. 
Journal: Applied Economics 
Pages: 305-314 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/713932836 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713932836 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:305-314




Template-Type: ReDIF-Article 1.0
Author-Name: Ramon Guajardo 
Author-X-Name-First: Ramon 
Author-X-Name-Last: Guajardo 
Author-Name: Homero Elizondo 
Author-X-Name-First: Homero 
Author-X-Name-Last: Elizondo 
Title: North American tomato market: a spatial equilibrium perspective 
Abstract:
  This paper studies the North American tomato market in a world market
 perspective. For this purpose a spatial equilibrium model with endogenous
 prices is constructed and solved by quadratic mathematical programming
 method. Six scenarios involving the impacts from transportation costs,
 tariffs, and North American Free Trade Agreement (NAFTA) were modelled.
 The solutions illustrate their impacts on production, consumption, trade
 flows, prices, and net social welfare. Due to NAFTA, Mexico became the
 main tomato exporter to the USA. 
Journal: Applied Economics 
Pages: 315-322 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840110101438 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110101438 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:315-322




Template-Type: ReDIF-Article 1.0
Author-Name: Justo Manrique 
Author-X-Name-First: Justo 
Author-X-Name-Last: Manrique 
Author-Name: Kalu Ojah 
Author-X-Name-First: Kalu 
Author-X-Name-Last: Ojah 
Title: The demand for housing in Spain: an endogenous switching regression analysis 
Abstract:
  Housing demand in Spain has been studied by using data disaggregated into
 primary and secondary housing demands. It is found that demand for both
 types of housing area, indeed, related and that they are both considered
 necessities; thus, suggesting that their consumption ought to be modelled
 as a joint decision. Moreover, it is found that traditional determinants
 of housing demand affect primary and secondary home demands differently.
 These differences are attributable to the following economic rationales:
 need for asset holdings diversifications, relative high cost of home
 ownership versus rental in choice locations, and differences in land
 demand intensity across regions. In sum, the findings suggest that policy
 makers in Spain, contrary to popular beliefs, must consider secondary
 homes an integral part of households' accommodation need. 
Journal: Applied Economics 
Pages: 323-336 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840110111149 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111149 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:323-336




Template-Type: ReDIF-Article 1.0
Author-Name: Atsuo Utaka 
Author-X-Name-First: Atsuo 
Author-X-Name-Last: Utaka 
Title: Confidence and the real economy - the Japanese case 
Abstract:
  This paper empirically analyses whether consumer confidence has an effect
 on the real economy in Japan. This paper uses vector autoregressions
 including variables which represent consumer confidence. It is shown that
 in the cases of quarterly and monthly data, consumer confidence has a
 significant effect on GDP fluctuations, whereas in the case of semiannual
 data, it has no effect. In other words, consumer confidence has an effect
 on only short-term economic fluctuations. 
Journal: Applied Economics 
Pages: 337-342 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210135205 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:337-342




Template-Type: ReDIF-Article 1.0
Author-Name: J. Isaac Brannon 
Author-X-Name-First: J. Isaac 
Author-X-Name-Last: Brannon 
Title: The effects of resale price maintenance laws on petrol prices and station attrition: empirical evidence from Wisconsin 
Abstract:
  The state of Wisconsin's Unfair Sales Act prevents the sale of any item
 below cost in order to attract business, and specifically requires petrol
 (gasoline) stations to mark up their prices by at least 6% over the
 wholesale price. While the ostensible reason for this law is to protect
 small, independent retailers and thus enhance competition, the evidence
 suggests that the primary result of this law has been to inflate the price
 of petrol for Wisconsin consumers and facilitate tacit collusion in retail
 petrol markets. Petrol prices in two major markets in the state are
 examined, as well as in one market outside of the state where no minimum
 markup is required. The data show that when the penalties for violating
 the Unfair Sales Act were strengthened, the average markup of retail
 petrol over the wholesale price increased significantly in Wisconsin
 without a commensurate change in the average markup in the market outside
 of Wisconsin. It is also found that price dispersion is significantly
 lower over a two-year period in the protected Wisconsin market than in the
 unprotected markets. 
Journal: Applied Economics 
Pages: 343-349 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210150857 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210150857 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:343-349




Template-Type: ReDIF-Article 1.0
Author-Name: Imed Drine 
Author-X-Name-First: Imed 
Author-X-Name-Last: Drine 
Author-Name: Christophe Rault 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Rault 
Title: Do panel data permit the rescue of the Balassa-Samuelson hypothesis for Latin American countries? 
Abstract:
  This paper tests empirically the Balassa-Samuelson (BS) hypothesis (i.e.
 rapid economic growth is accompanied by real exchange rate appreciation
 because of differential productivity growth between tradable and
 non-tradable sectors) using annual data for twenty Latin American
 countries. The paper applies new panel data unit-root tests proposed by Im
 et al. (Discussion paper, University of Cambridge, June 1997) and new
 panel data cointegration techniques suggested by Pedroni (Oxford Bulletin
 of Economics and Statistics, 1999) and the results are compared with those
 obtained with conventional time series unit-roots and cointegration tests.
 The main finding is that whereas a standard time series approach rejects
 the Balassa-Samuelson hypothesis for 11 countries out of 20, new panel
 cointegration techniques permit the rescue of this hypothesis for Latin
 American countries, as well as for Central American and South American
 groups of countries considered separately. 
Journal: Applied Economics 
Pages: 351-359 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015838 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:351-359




Template-Type: ReDIF-Article 1.0
Author-Name: L. Steinmann 
Author-X-Name-First: L. 
Author-X-Name-Last: Steinmann 
Author-Name: P. Zweifel 
Author-X-Name-First: P. 
Author-X-Name-Last: Zweifel 
Title: On the (in)efficiency of Swiss hospitals 
Abstract:
  The efficiency of hospitals is of interest to health insurers, government
 authorities and hospital management itself. However, econometric methods
 for determining (in)efficiency have severe drawbacks since hospitals are
 multiproduct firms and because the duality between production and cost
 functions cannot be assumed. In this work, non-parametric, deterministic
 data envelopment analysis (DEA) is used to measure the relative
 inefficiency of 89 Swiss hospitals covering the years 1993-1996 (310
 observations). Special attention is given to the role of patient days in
 the production of health. The findings depend on whether patient days are
 viewed as an input of patient time or as an output, as in previous
 studies. While the probability of a unit being inefficient cannot be
 explained using the available data, the degree of overall inefficiency is
 shown to significantly depend on the financial incentives faced by
 management, in particular due to subsidization. Private hospitals do not
 seem to be less inefficient than public ones; however, this may be caused
 by their 'overusing' inputs that in fact are valued as amenities by
 patients. This consideration points to an important limitation in applying
 the purely quantitative criteria of DEA to hospitals. 
Journal: Applied Economics 
Pages: 361-370 
Issue: 3 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210167183 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210167183 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:361-370




Template-Type: ReDIF-Article 1.0
Author-Name: Russell Sobel 
Author-X-Name-First: Russell 
Author-X-Name-Last: Sobel 
Author-Name: S. Travis Raines 
Author-X-Name-First: S. Travis 
Author-X-Name-Last: Raines 
Title: An examination of the empirical derivatives of the favourite-longshot bias in racetrack betting 
Abstract:
  Market efficiency dictates it equally profitable to bet on any racing
 participant, including the favourite or longshot. However, a
 well-documented anomaly is that racetrack bettors tend to overbet
 longshots and underbet favourites. This study presents and tests two
 theoretical explanations for this favourite-longshot bias. The
 unparalleled richness of the data allows the exploration of how the bias
 changes with several key variables. This study finds the most popular
 current explanation for the bias, the risk preference model, cannot
 explain the data as well as an information-based model, in which the bias
 depends on bet complexity and the information possessed by bettors. 
Journal: Applied Economics 
Pages: 371-385 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840110111176 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111176 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:371-385




Template-Type: ReDIF-Article 1.0
Author-Name: Marianne Sensier 
Author-X-Name-First: Marianne 
Author-X-Name-Last: Sensier 
Title: Inventories and asymmetric business cycle fluctuations in the UK: a structural approach 
Abstract:
  This paper investigates the movement of manufacturing inventories and
 production over the business cycle to arrive at an asymmetric structural
 equilibrium-correction model. Initially cross-correlation coefficients and
 deepness and steepness tests for skewness are utilized to present
 descriptive statistics of the time series. Cointegration analysis is
 performed on each disaggregate inventory by stage of production (finished
 goods, work in progress and raw materials) with a set of explantory
 variables. Restricted cointegration vectors are added to the symmetric and
 non-symmetric specifications of the structural equilibrium-correction
 model. These are compared by parameter constancy tests and one-step ahead
 forecasts. 
Journal: Applied Economics 
Pages: 387-402 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210128735 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128735 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:387-402




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Sylwester 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Sylwester 
Title: Changes in income inequality and the black market premium 
Abstract:
  Is a high black market premium for US dollars associated with rising or
 falling income inequality within a nation? This paper empirically examines
 this issue within a cross section of countries and finds that the black
 market premium is strongly associated with rising income inequality as
 measured by changes in the Gini coefficient. Others have used the black
 market premium as a proxy to measure protectionist policies so a possible
 implication is that protectionist policies further skew the distribution
 of income within a country. However, other measures of protectionist
 policies are not associated with changes in income inequality. Instead,
 other factors which might drive the black market premium such as interest
 rate differentials appear to be more relevant in explaining why the black
 market premium is positively related with increases in income inequality. 
Journal: Applied Economics 
Pages: 403-413 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210134530 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210134530 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:403-413




Template-Type: ReDIF-Article 1.0
Author-Name: William Stein 
Author-X-Name-First: William 
Author-X-Name-Last: Stein 
Author-Name: Philip Mizzi 
Author-X-Name-First: Philip 
Author-X-Name-Last: Mizzi 
Title: An analysis of exotic wagers in a parimutuel setting 
Abstract:
  In US horse racing, there is increasing emphasis placed on the creation
 of exotic wagers - those bets beyond the standard win, place and show.
 Bets on multiple races that typically do not result in a winner for
 several days are of particular interest to the industry. The growing
 carryover pool helps attract people to the racetrack in a way similar to a
 growing carryover in the lottery attracts more people to participate. This
 article examines several multiple race bets and provides a framework for
 their comparative analysis. The results of the analysis will help
 racetrack management decide if a proposed bet is appropriate for their
 particular track. This analysis shows a tradeoff between the difficulty of
 winning the bet versus the amount of the ultimate payoff. If a bet is too
 easy to win, then the carryover pool will never reach an attractive level.
 If the bet is too difficult to win, then the bettors will lose interest
 before the carryover pool is able to grow sufficiently large. The amount
 of money wagered daily is an important consideration in determining the
 appropriate type of exotic wager to implement. 
Journal: Applied Economics 
Pages: 415-421 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210140137 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210140137 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:415-421




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Mauser 
Author-X-Name-First: Gary 
Author-X-Name-Last: Mauser 
Author-Name: Dennis Maki 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Maki 
Title: An evaluation of the 1977 Canadian firearm legislation: robbery involving a firearm 
Abstract:
  The effect of the 1977 Canadian firearm legislation on robberies
 involving firearms is evaluated between 1974 and 1992 using a pooled
 cross-section, time series model. The results show that the 1977
 legislation did not reduce robbery involving firearms, nor did it have a
 significant effect on the total robbery or armed robbery rates. The
 legislation may even have acted perversely in that it may have increased
 robberies with firearms. In general, these results are consistent with
 previous published findings but contrast with unpublished governmental
 studies. The implication that this legislation may have acted perversely
 is new and requires further investigation. 
Journal: Applied Economics 
Pages: 423-436 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210143099 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210143099 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:423-436




Template-Type: ReDIF-Article 1.0
Author-Name: Krishna Akikina 
Author-X-Name-First: Krishna 
Author-X-Name-Last: Akikina 
Author-Name: Hamed Al-Hoshan 
Author-X-Name-First: Hamed 
Author-X-Name-Last: Al-Hoshan 
Title: Independence of monetary policy under fixed exchange rates: the case of Saudi Arabia 
Abstract:
  This study specifies a modified version of the monetary approach to the
 balance of payments (MABP) model with free capital flow and fixed exchange
 rates for Saudi Arabia, and tests the independence of monetary policy of
 its central bank using annual data from 1960 to 1994. Further, capital
 flight and speculative inventory behaviour of importers of consumer and
 capital goods in Saudi Arabia are also tested to the expected exchange
 rate depreciation during the periods of exchange turmoil against the
 riyal. The results of this study indicate that Saudi Arabian Monetary
 Authority has at best a weak control on its money supply which is in
 accord with one of the predictions of MABP theory. Further, the study
 found little support to the speculative inventory behaviour of the
 importers of consumer and capital goods in Saudi Arabia against exchange
 rate depreciation of the riyal. However, the results suggest that the
 expected change in exchange rate depreciation has a positive and a
 significant impact on capital flight in Saudi Arabia. 
Journal: Applied Economics 
Pages: 437-448 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210148049 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148049 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:437-448




Template-Type: ReDIF-Article 1.0
Author-Name: Salvator Nkunzimana 
Author-X-Name-First: Salvator 
Author-X-Name-Last: Nkunzimana 
Author-Name: H. Alan Love 
Author-X-Name-First: H. Alan 
Author-X-Name-Last: Love 
Author-Name: C. Richard Shumway 
Author-X-Name-First: C. Richard 
Author-X-Name-Last: Shumway 
Title: Mexican agricultural trade under the GATT 
Abstract:
  Expected effects from partially lifting tariff barriers on the Mexican
 agricultural sector are investigated using a restricted profit function
 (RPF) approach. Short-run and intermediate-run effects of the
 implementation of GATT minimum tariff provisions on Mexican agricultural
 trade are examined. Specification tests reveal the appropriateness of the
 RPF approach, that exports should not be aggregated with non-traded
 production into a single output, and that the farm sector behaves as an
 'almost' price-taking, profit-maximizing firm. Policy simulations suggest
 important short-run changes in agricultural trade and chemical use and
 intermediate-run changes in agricultural trade, labour wage, chemical use,
 capital investments, and net farm income. 
Journal: Applied Economics 
Pages: 449-459 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210148076 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:449-459




Template-Type: ReDIF-Article 1.0
Author-Name: Uma Kambhampati 
Author-X-Name-First: Uma 
Author-X-Name-Last: Kambhampati 
Author-Name: Ashok Parikh 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Parikh 
Title: Disciplining firms: the impact of trade reforms on profit margins in Indian industry 
Abstract:
  The paper analyses the effects of increased trade exposure on the
 profitability of firms in Indian industry. While trade reforms are often
 expected to decrease profit margins as firms struggle to compete in
 international markets, there is the possibility that increased competition
 may improve firm efficiency and provide a positive impetus to firm
 profitability. This paper is different from many others in this area in
 that it considers both these possibilities. An efficiency index is created
 to directly analyse the impact of changing efficiency levels on firm
 profit margins. Results indicate that liberalization significantly
 influenced profit margins. However, its main effect is through the impact
 that it has had on other firm variables - market shares, advertising, R&D
 and exports - all of which changed after 1991. While exports have had a
 pro-competitive effect on profit margins in the selected sample, AD and
 R&D both cause an increase in profit margins. It is also found that
 neither capital nor managerial capabilities (as proxied by remuneration)
 are particularly effective in increasing profit margins. 
Journal: Applied Economics 
Pages: 461-470 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210155177 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210155177 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:461-470




Template-Type: ReDIF-Article 1.0
Author-Name: Shunxiang Wu 
Author-X-Name-First: Shunxiang 
Author-X-Name-Last: Wu 
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: Yaochi Lu 
Author-X-Name-First: Yaochi 
Author-X-Name-Last: Lu 
Title: Estimation and decomposition of technical efficiency for sugarbeet farms 
Abstract:
  This study computes technical efficiency for Idaho sugarbeet farms and
 decomposes it into pure technical efficiency, scale efficiency, and
 congestion efficiency using nonparametric procedures. The results indicate
 that the average efficiency is 0.88 with 45% of the farms in the sample
 exhibiting full efficiency. Improper scale operation and input
 overutilization are the major sources of inefficiency for remaining farms.
 Technical efficiency is independent of farm size. A Tobit model was used
 to examine the impacts of variables such as farm size, specialization,
 tenancy position, hired labour, location, and managerial ability on
 efficiency. Inefficiency in sugarbeet production results in a shortfall of
 potential revenues not only for producers, but also for landlords and
 processors. 
Journal: Applied Economics 
Pages: 471-484 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210161819 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161819 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:471-484




Template-Type: ReDIF-Article 1.0
Author-Name: T. -W. Ho 
Author-X-Name-First: T. -W. 
Author-X-Name-Last: Ho 
Title: Regime-switching properties of the optimal seigniorage hypothesis: the case of Taiwan 
Abstract:
  The optimal seigniorage hypothesis argues that the government will
 attempt to minimize the sum of social costs arising from the rate of
 inflation and taxation, which results in the testable prediction that
 inflation and rate of tax revenue will be positively correlated. This
 article empirically examines the regime-switching properties of this
 theory. Using quarterly data from Taiwan over 1961-2000 sampling periods,
 it finds that the optimal seigniorage hypothesis is weakly supported, and
 its explanatory power for the long-run inflation behaviour is weak. 
Journal: Applied Economics 
Pages: 485-494 
Issue: 4 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015919 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015919 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:485-494




Template-Type: ReDIF-Article 1.0
Author-Name: Donald Freeman 
Author-X-Name-First: Donald 
Author-X-Name-Last: Freeman 
Title: Is health care a necessity or a luxury? Pooled estimates of income elasticity from US state-level data 
Abstract:
  This paper provides new evidence on the income elasticity of health care
 by combining stationarity and cointegration tests of health care
 expenditure and incomes with estimates of the cointegrating relationship
 between them. A recently updated dataset of health care expenditures and
 disposable personal income for the US states for the years 1966-1998 is
 used. The principal findings are that health care expenditures and incomes
 at the state level are non-stationary and cointegrated. Dynamic OLS
 cointegrating regressions of the pooled state time series estimate the
 income elasticity of health care at 0.817 to 0.844, well below unity,
 confirming that health care expenditure, even at the aggregate level, is a
 necessity good. 
Journal: Applied Economics 
Pages: 495-502 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210138374 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138374 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:495-502




Template-Type: ReDIF-Article 1.0
Author-Name: Stathis Klonaris 
Author-X-Name-First: Stathis 
Author-X-Name-Last: Klonaris 
Author-Name: David Hallam 
Author-X-Name-First: David 
Author-X-Name-Last: Hallam 
Title: Conditional and unconditional food demand elasticities in a dynamic multistage demand system 
Abstract:
  This paper estimates conditional and unconditional demand elasticities in
 a three stage analysis of consumer demand for food and non-food items in
 Greece. A dynamic version of the AIDS model is specified and estimated,
 and full system misspecification tests applied. Correction formulas for
 price and expenditure elasticities are used to calculate unconditional
 elasticities from conditional demand sub-systems. All food items rank as
 price inelastic. Deviations between the calculated conditional and
 unconditional price and expenditure elasticities are found to be
 significant, demonstrating the importance of correcting conditional
 elasticities before they can be used for policy purposes or welfare
 analyses. 
Journal: Applied Economics 
Pages: 503-514 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210148058 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148058 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:503-514




Template-Type: ReDIF-Article 1.0
Author-Name: Mathias Hoffmann 
Author-X-Name-First: Mathias 
Author-X-Name-Last: Hoffmann 
Title: Cross-country evidence on the link between the level of infrastructure and capital inflows 
Abstract:
  The relationship between public infrastructure and international capital
 flows is empirically investigated. Out of a sample of 30 countries a
 cross-sectional econometric model is constructed to estimate the effects.
 Different components of infrastructure variables are tested in relation to
 their impact on different kinds of external capital liabilities. The
 results suggest a positive relationship between the level of
 infrastructure and capital inflows. However, statistical significance
 cannot be established for all variables in question. 
Journal: Applied Economics 
Pages: 515-526 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015874 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015874 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:515-526




Template-Type: ReDIF-Article 1.0
Author-Name: R. Milbourne 
Author-X-Name-First: R. 
Author-X-Name-Last: Milbourne 
Author-Name: G. Otto 
Author-X-Name-First: G. 
Author-X-Name-Last: Otto 
Author-Name: G. Voss 
Author-X-Name-First: G. 
Author-X-Name-Last: Voss 
Title: Public investment and economic growth 
Abstract:
  This article uses an extension of Mankiw, Romer and Weil's augmented
 Solow-Swan growth model to examine whether public investment has a
 distinct role as a determinant of economic growth. It considers both the
 predictions of the model in steady state and in transition to steady
 state. For the steady state model, there is no significant effect from
 public investment on the level of output per worker. Using standard
 ordinary least squares (OLS) methods for the transition model, it observes
 a significant contribution to economic growth from public investment. When
 instrumental variables methods are used, however, the associated standard
 errors are much larger and the contribution of public investment is
 statistically insignificant. 
Journal: Applied Economics 
Pages: 527-540 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015883 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015883 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:527-540




Template-Type: ReDIF-Article 1.0
Author-Name: L. Achy 
Author-X-Name-First: L. 
Author-X-Name-Last: Achy 
Title: Parity reversion persistence in real exchange rates: middle income country case 
Abstract:
  This article investigates purchasing power parity (PPP) in the specific
 context of middle income countries. To circumvent the low power of
 traditional stationarity tests (Augmented Dickey-Fuller and
 Phillips-Perron tests), it performs variance ratio and fractional
 integration tests in addition to Perron's test that accounts for potential
 structural changes in real exchange rate processes. Beyond estimating
 half-life shocks to PPP, this article attempts to explain these estimates
 using a set of country specific variables as suggested by economic theory.
 The evidence suggests that reversion to parity tends to be faster in high
 inflation countries and that productivity improvement leads to a higher
 level of persistence. Openness to trade tends to reduce the extent of
 deviations from parity but this result does not appear to be statistically
 robust. Evidence shows also that deviations are less persistent under a
 fixed exchange rate regime and under unrestricted capital mobility. 
Journal: Applied Economics 
Pages: 541-553 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015937 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015937 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:541-553




Template-Type: ReDIF-Article 1.0
Author-Name: R. H. Koning 
Author-X-Name-First: R. H. 
Author-X-Name-Last: Koning 
Title: An econometric evaluation of the effect of firing a coach on team performance 
Abstract:
  Firing the manager is a drastic measure employed by firms to deal with
 poor performance. However, data on within-firm dynamics are scarce, and
 the firing of individual managers is rarely recorded in the firm level
 data currently available. This makes the value of firing a manager
 difficult to assess. Data on sports offer a unique opportunity to study
 this phenomenon because the firing of a coach is usually well-publicized.
 Using data on soccer, the author evaluates the effect of the firing of a
 coach on team performance. As teams do not face the same opponents before
 and after a coach is fired, the issue of sample selectivity is addressed. 
Journal: Applied Economics 
Pages: 555-564 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000015946 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015946 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:555-564




Template-Type: ReDIF-Article 1.0
Author-Name: Jarko Fidrmuc 
Author-X-Name-First: Jarko 
Author-X-Name-Last: Fidrmuc 
Author-Name: Andreas Worgotter 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Worgotter 
Author-Name: Julia Worz 
Author-X-Name-First: Julia 
Author-X-Name-Last: Worz 
Title: Does foreign policy determine foreign trade? Cointegration analysis of exports from selected countries to the Middle East 
Abstract:
  The paper analyses the relations between foreign policy and export
 performance. The paper deals with exports of selected European countries
 and the USA to Middle Eastern countries including Israel. Cointegration
 analysis is used to identify common stochastic trends in export series. A
 long-term relationship implies no significant influence of foreign policy
 differences on trade performance. According to the Johansen tests applied
 to bivariate and multivariate models, German, Austrian, Dutch and EU
 exports to Israel are cointegrated with the US exports, while Swiss
 exports are never cointegrated with the exports of these countries. This
 result confirms the importance of foreign policy in trade performance. 
Journal: Applied Economics 
Pages: 565-571 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000018196 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018196 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:565-571




Template-Type: ReDIF-Article 1.0
Author-Name: Sachiko Miyata 
Author-X-Name-First: Sachiko 
Author-X-Name-Last: Miyata 
Title: Household's risk attitudes in Indonesian villages 
Abstract:
  This paper estimates attitudes towards risk using data obtained through
 interviews of 400 households in villages in Indonesia. Participants were
 invited to play investment games in order to identify household risk
 attitudes. The game result supports the hypothesis of non-decreasing
 partial relative risk aversion. Using an ordered probit model, the
 determinants of risk attitude were investigated. The results show that the
 variable of co-residence is important: an individual living with his or
 her parents is less risk averse than an individual in a nuclear household.
 Co-residence can be viewed as a type of 'security blanket'. Partial
 relative risk aversion decreases with the level of education and wealth. 
Journal: Applied Economics 
Pages: 573-583 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000020823 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000020823 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:573-583




Template-Type: ReDIF-Article 1.0
Author-Name: Loa Buchli 
Author-X-Name-First: Loa 
Author-X-Name-Last: Buchli 
Author-Name: Massimo Filippini 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Filippini 
Author-Name: Silvia Banfi 
Author-X-Name-First: Silvia 
Author-X-Name-Last: Banfi 
Title: Estimating the benefits of low flow alleviation in rivers: the case of the Ticino River 
Abstract:
  In Switzerland 60% of electricity is produced by hydropower plants. The
 construction and operation of these plants determine some negative
 environmental externalities, such as diminishing groundwater levels and
 spring flows, and a reduction in river flow, which can severely curtail
 recreational and fishing activities. This study concentrates on an ex-ante
 appraisal of the monetary benefits resulting from an enhancement of river
 flow for recreational fishing purposes. A comparison of estimates of these
 benefits to the corresponding costs, in terms of loss of electricity
 production, incurred by hydropower plants to alleviate low flows may be
 useful for policy makers. For this analysis, as suggested by Layman et al.
 (Land Economics 72, pp. 113-128, 1996), the Travel Cost Method (TCM) is
 extended to estimate the economic value of recreational fishing in the
 Ticino River (the most important river of the Canton Ticino) under
 existing and hypothetical river flow conditions. Anglers were asked to
 state how the number of trips they took to the Ticino River would change
 if an increase in the river flow was imposed on the hydropower plants. The
 empirical results show that an enhancement of river flow increases the
 annual consumer surplus for a typical angler by approximately 440 SFr. 
Journal: Applied Economics 
Pages: 585-590 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000056797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:585-590




Template-Type: ReDIF-Article 1.0
Author-Name: Ayca Tekin-Koru 
Author-X-Name-First: Ayca 
Author-X-Name-Last: Tekin-Koru 
Author-Name: Erdal Ozmen 
Author-X-Name-First: Erdal 
Author-X-Name-Last: Ozmen 
Title: Budget deficits, money growth and inflation: the Turkish evidence 
Abstract:
  The paper investigates the long-run relationships between budget
 deficits, inflation and monetary growth in Turkey considering two
 alternative trivariate systems corresponding to the narrowest and the
 broadest monetary aggregates. While the joint endogeneity of money and
 inflation rejects the validity of the monetarist view, lack of a direct
 relationship between inflation and budget deficits makes the pure fiscal
 theory explanations illegitimate for the Turkish case. Consistent with the
 policy regime of financing domestic debt through the commercial banking
 system, budget deficits lead to a growth not of currency seigniorage but
 of broad money in Turkey. This mode of deficit financing, leading to the
 creation of near money and restricting the scope for an effective monetary
 policy, may not be sustainable, as the government securities/broad money
 ratio cannot grow without limit. 
Journal: Applied Economics 
Pages: 591-596 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000025440 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000025440 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:591-596




Template-Type: ReDIF-Article 1.0
Author-Name: S. Mcguinness 
Author-X-Name-First: S. 
Author-X-Name-Last: Mcguinness 
Title: Graduate overeducation as a sheepskin effect: evidence from Northern Ireland 
Abstract:
  This article examines the nature of graduate overeducation amongst a
 group of applicants to a graduate conversion programme. It was found that
 while a substantial proportion of earnings differentials were associated
 with a mismatch between individual skill levels and job requirements, wage
 gaps were still likely to occur should such mismatches be eliminated. The
 evidence suggests that graduate wage levels are heavily related to
 sheepskin effects associated with the attainment of jobs with graduate
 level entry requirements. These sheepskin effects suggest that the process
 of job categorization is arbitrary in nature, with stated job requirements
 somewhat independent of actual skill requirements. The analysis suggests
 that graduate overeduction is better understood within the context of both
 skill and categorization mismatches as opposed to skill matches alone. 
Journal: Applied Economics 
Pages: 597-608 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000029284 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000029284 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:597-608




Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel 
Author-X-Name-First: D. A. 
Author-X-Name-Last: Peel 
Author-Name: I. A. Venetis 
Author-X-Name-First: I. A. 
Author-X-Name-Last: Venetis 
Title: Purchasing power parity over two centuries: trends and nonlinearity 
Abstract:
  In two recent contributions Lothian and Taylor, and Cuddington and Liang,
 produced empirical evidence that annual data for the dollar-sterling real
 exchange rate spanning two centuries exhibited a non-linear deterministic
 trend. This trend could be proxying Harrod-Balassa-Samuelson effects.
 Lothian and Taylor showed that a linear stationary autoregressive mode,
 which embodied a cubic trend, implied much faster mean reversion of the
 real exchange rate to shocks than a model that excluded the trend. This
 article shows that both non-linearity and a deterministic trend can be
 allowed for in a theoretically appealing manner and that the fitted models
 provide a parsimonious explanation of both the dollar-sterling and
 franc-sterling real exchange rates over the two centuries of data.
 Generalized impulse response function analysis of the models demonstrates
 that the speed of adjustment to shocks can be even faster when trends are
 considered. 
Journal: Applied Economics 
Pages: 609-617 
Issue: 5 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000035773 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035773 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:609-617




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Carruth 
Author-X-Name-First: Alan 
Author-X-Name-Last: Carruth 
Author-Name: Andrew Dickerson 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Dickerson 
Title: An asymmetric error correction model of UK consumer spending 
Abstract:
  This paper augments the Granger and Lee (Journal of Applied Econometrics,
 4, 1989) non-symmetric error (equilibrium) correction model to assess the
 possibility that, in the aggregate, consumers respond differently to
 different types of disequilibrium error. This idea is illustrated using an
 Engle-Granger implementation of the Davidson, Hendry, Srba and Yeo (DHSY,
 Economic Journal, 80, 1978) model. The disequilibrium error is
 endogenously determined by the long-run, empirical model and a binary
 dummy variable captures two alternative states, above and below
 equilibrium spending. Interaction of the dummy variable with key variables
 in a short-run dynamic model of UK consumer spending augments the dynamics
 of the DHSY model. Income elasticities, inflation elasticities and speeds
 of adjustment are all seen to change significantly depending on whether
 the disequilibrium error is positive or negative, and is suggestive of
 asymmetric behaviour on the part of consumers. Moreover, the
 asymmetrically augmented model substantially outperforms a symmetric model
 with standard error improvements in excess of 50%. 
Journal: Applied Economics 
Pages: 619-630 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000035782 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035782 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:619-630




Template-Type: ReDIF-Article 1.0
Author-Name: C. J. C. Bacha 
Author-X-Name-First: C. J. C. 
Author-X-Name-Last: Bacha 
Title: The determinants of reforestation in Brazil 
Abstract:
  This article analyses the main determinants of reforestation in Brazil
 during the 1980s and 1990s. In the year 2000 Brazil had the sixth largest
 planted forests area in the world. The planted forests in Brazil saw a
 huge increase from 1960 to 1985. Since then, however, that stock has
 decreased, but the demand for roundwood continues to increase. That
 situation will result in a scarcity of roundwood from reforestation in
 Brazil in few years. The expected roundwood scarcity motivates an
 econometric study to compare market forces and economic policies in
 stimulating the reforestation in Brazil. Considering the main firms
 reforesting in Brazil, it can be pointed out that small and medium farmers
 have been planting forests while private or public programmes are present.
 Otherwise, large wood-based firms consider factors other than prices (such
 as their future demand for roundwood) to be more important in their
 planting decisions. Those results cast doubts about the efficiency of the
 market price system in solving the future scarcity of roundwood in Brazil. 
Journal: Applied Economics 
Pages: 631-639 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000035791 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035791 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:631-639




Template-Type: ReDIF-Article 1.0
Author-Name: Dragan Miljkovic 
Author-X-Name-First: Dragan 
Author-X-Name-Last: Miljkovic 
Author-Name: Gary Brester 
Author-X-Name-First: Gary 
Author-X-Name-Last: Brester 
Author-Name: John Marsh 
Author-X-Name-First: John 
Author-X-Name-Last: Marsh 
Title: Exchange rate pass-through, price discrimination, and US meat export prices 
Abstract:
  Exports are becoming increasingly important for US livestock and poultry
 producers. Consequently, meat industry participants are concerned about
 the potential impacts of variations in relative currency values. These
 effects are considered by quantifying the impacts of relative exchange
 rates on US beef, pork and poultry export prices. In addition, the impacts
 of GATT and NAFTA agreements on exchange rate pass-through are considered.
 The results indicate incomplete exchange rate pass-through occurs for
 several countries. Trade liberalization under GATT has positively
 influenced US beef and poultry export prices. 
Journal: Applied Economics 
Pages: 641-650 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000035809 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035809 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:641-650




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph BOhringer 
Author-X-Name-First: Christoph 
Author-X-Name-Last: BOhringer 
Author-Name: Andreas LOschel 
Author-X-Name-First: Andreas 
Author-X-Name-Last: LOschel 
Title: Market power and hot air in international emissions trading: the impacts of US withdrawal from the Kyoto Protocol 
Abstract:
  Ten years after the initial Climate Change Convention from Rio in 1992
 the industrialized world is finally likely to ratify the Kyoto Protocol,
 which will impose legally binding greenhouse gas emission reductions on
 the developed world. However, the Kyoto Protocol will enter into force
 without the USA, which withdrew under President Bush in March 2001.
 Accounting for hot air and market power of the Former Soviet Union on
 emission permit markets, it is shown that US withdrawal has important
 consequences on environmental effectiveness, compliance costs, and excess
 costs of market power under the Kyoto Protocol. Non-compliance of the USA
 implies a dramatic decrease in environmental effectiveness as well as
 compliance costs of OECD countries whereas the Former Soviet Union and
 transitional economies in Eastern Europe suffer from a huge decline in
 permit sales revenues. Excess costs of market power in permit trade
 increase in relative terms, but decline substantially in absolute terms
 due to US withdrawal. Policy options are quantified to bypass the problems
 of hot air and market power through compensation mechanisms. 
Journal: Applied Economics 
Pages: 651-663 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684021000035818 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684021000035818 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:651-663




Template-Type: ReDIF-Article 1.0
Author-Name: James Alleman 
Author-X-Name-First: James 
Author-X-Name-Last: Alleman 
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Scott Savage 
Author-X-Name-First: Scott 
Author-X-Name-Last: Savage 
Title: Dominant carrier market power in US international telephone markets 
Abstract:
  An econometric model is used to examine market power in US international
 telephone markets. Lerner index estimates suggest AT&T's collection
 rate-cost margin was between 12% and 24% during 1991 to 1995. Although
 Lerner estimates imply deadweight welfare losses of up to US $261 million
 per annum, such losses are small compared to those from the inefficient
 pricing of international interconnection. Settlement rate-cost margins on
 US bilateral markets of approximately 89% translate into a US $4907
 million transfer from consumers to carriers in 1995. 
Journal: Applied Economics 
Pages: 665-673 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000040957 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000040957 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:665-673




Template-Type: ReDIF-Article 1.0
Author-Name: B. L. Pandit 
Author-X-Name-First: B. L. 
Author-X-Name-Last: Pandit 
Author-Name: N. S. Siddharthan 
Author-X-Name-First: N. S. 
Author-X-Name-Last: Siddharthan 
Title: MNEs and market valuation of firms: a cross-sectional study of Indian electrical and electronic goods manufacturing firms 
Abstract:
  This paper argues that inter-firm differences in the direction of change
 in market valuation will depend mainly on the 'salience' and unique risk
 characteristics of the firms. These characteristics are largely influenced
 by mulinational enterprise (MNE) affiliation. The sample for the study
 consists of electrical and electronic manufacturing firms in India for
 1994-1996. Maximum Likelihood Estimates of the Probit model show that even
 during a downswing in the stock market MNE affiliates were able to hold
 their own and increase their market valuation. These results hold good for
 a wide variety of products produced in this sector where both MNEs and
 local firms compete. The results have implications for theories relating
 to MNEs, stock market valuation and also for policy makers. 
Journal: Applied Economics 
Pages: 675-681 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000042991 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000042991 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:675-681




Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Filippini 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Filippini 
Author-Name: Paola Prioni 
Author-X-Name-First: Paola 
Author-X-Name-Last: Prioni 
Title: The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration 
Abstract:
  In deregulated transport markets, a firm's ownership status and
 management system represent an important issue. Property right theory
 suggests that productivity and performance are higher in the private than
 in the public sector. In Switzerland, providers of bus transportation are
 traditionally corporations, though a large part of their equity shares are
 still held by the public sector (federal government, cantons,
 municipalities). This paper examines the potential impact of ownership on
 the cost of bus service provision for a sample of private, public and
 mixed bus companies in Switzerland. The estimation of a translog cost
 model has been considered for 34 bus transit companies observed over 5
 years (1991-1995). The results only partially confirm that if the private
 sector holds shares in the company's capital, efficiency is enhanced. In
 addition, measures of economies of scale and density are derived and
 discussed within the actual public transport policy. 
Journal: Applied Economics 
Pages: 683-690 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000056788 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:683-690




Template-Type: ReDIF-Article 1.0
Author-Name: A. E. Akinlo 
Author-X-Name-First: A. E. 
Author-X-Name-Last: Akinlo 
Author-Name: A. F. Odusola 
Author-X-Name-First: A. F. 
Author-X-Name-Last: Odusola 
Title: Assessing the impact of Nigeria's naira depreciation on output and inflation 
Abstract:
Journal: Applied Economics 
Pages: 691-703 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000056823 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056823 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:691-703




Template-Type: ReDIF-Article 1.0
Author-Name: S. Carbo 
Author-X-Name-First: S. 
Author-X-Name-Last: Carbo 
Author-Name: E. P. M. Gardener 
Author-X-Name-First: E. P. M. 
Author-X-Name-Last: Gardener 
Author-Name: J. Williams 
Author-X-Name-First: J. 
Author-X-Name-Last: Williams 
Title: A note on technical change in banking: the case of European savings banks 
Abstract:
  Using a Fourier flexible form cost function methodology, technical
 progress is estimated for a large sample of European savings banks between
 1989 and 1997. On average, technical progress has reduced savings banks
 total costs by around 3.4% per annum. Since the European savings banks
 industry is characterized by technology sharing arrangements, a test is
 made to determine whether technical change is positively related to bank
 size. The estimates identify two important features of how technical
 progress has effected European savings banks' costs. First, costs
 reductions arising from technical change diminish between 1989 and 1997.
 Second, technical progress has a bigger impact on reducing large savings
 banks' costs, chiefly because of its influence on input prices, that is,
 non-neutral technical change increases systematically with size. This
 suggests that large savings banks have greater flexibility in reducing
 costs in response to technical progress, implying that technology sharing
 arrangements have not led to uniform reductions in banks' total cost.
 Rather, large savings banks are market leaders and small banks market
 followers. Since larger banks benefit more from technical progress this
 may be an important factor promoting consolidation in the European savings
 banks industry. 
Journal: Applied Economics 
Pages: 705-719 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000035836 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035836 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:705-719




Template-Type: ReDIF-Article 1.0
Author-Name: Cuneyt Koyuncu 
Author-X-Name-First: Cuneyt 
Author-X-Name-Last: Koyuncu 
Author-Name: Donald Lien 
Author-X-Name-First: Donald 
Author-X-Name-Last: Lien 
Title: E-commerce and consumer's purchasing behaviour 
Abstract:
  After its first exposure to the public in 1993, there has been a rapid
 increase in the use of the Internet for different purposes, particularly
 for electronic trade. In such a new trade area, there are a lot of issues
 to be addressed with regard to the consumer's purchasing behaviour. This
 study analyses the roles of sexual preference, primary place of online
 access, and online experience as well as demographic and economic factors
 on the consumer's purchasing decision. Moreover, this study investigates
 the impact of the potential and/or prevalent critical issues facing the
 Internet (e.g. taxation of services, privacy, censorship, etc.) on online
 orders. Surprisingly, sexual preferences have a large significant effect
 on online purchases. Gay and bisexual people are more likely to shop from
 the Internet than the other ones. The results, also, suggest that people
 with more online experiences in a more private and secure environment like
 home are disposed to order more from the Internet. In addition to that,
 only the issues of taxation of services and privacy have some
 statistically significant effects on online purchasing decisions. The
 former and latter have positive and negative impacts on online orders
 respectively. 
Journal: Applied Economics 
Pages: 721-726 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000020850 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000020850 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:721-726




Template-Type: ReDIF-Article 1.0
Author-Name: Rosina Moreno 
Author-X-Name-First: Rosina 
Author-X-Name-Last: Moreno 
Author-Name: Enrique LOpez-bazo 
Author-X-Name-First: Enrique 
Author-X-Name-Last: LOpez-bazo 
Author-Name: Manuel ArtIs 
Author-X-Name-First: Manuel 
Author-X-Name-Last: ArtIs 
Title: On the effectiveness of private and public capital 
Abstract:
  This study assesses the effectiveness of private and public capital
 investments in the performance of manufactures within the framework of the
 duality theory. The response of costs of production and input utilization
 to changes in the stocks of private and public capital is measured by the
 appropriate elasticities obtained from a cost function. Instead of
 considering private capital either as a variable or fixed input on a
 priori grounds, its nature is checked, that is, the study discriminates
 between a long- and a short-run situation. The empirical exercise is made
 for the manufacturing industries in the Spanish regions. 
Journal: Applied Economics 
Pages: 727-740 
Issue: 6 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/1350485032000066043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/1350485032000066043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:727-740




Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh 
Author-X-Name-First: Tarlok 
Author-X-Name-Last: Singh 
Title: Effects of exports on productivity and growth in India: an industry-based analysis 
Abstract:
  This study analyses the effects of exports on the level of output per
 capita using the panel estimates of an extended version of the Mankiw,
 Romer and Weil (The Quarterly Journal of Economics, CVII, 407-37, 1992)
 model, and on the total factor productivity using the time series
 estimators. The analysis is carried out for ten industries in the
 manufacturing sector in India. The results do not provide any evidence of
 convergence, and instead support the contrary evidence of divergence among
 industries. The exports do not induce convergence and instead seem to
 accentuate the process of divergence among industries. The study provides
 some evidence for the significant effects of exports on the level of
 output per capita and TFP in the manufacturing sector. The effects of
 exports on TFP are significant in half of the sample industries, while in
 the remaining half these are statistically insignificant. 
Journal: Applied Economics 
Pages: 741-749 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210139337 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139337 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:741-749




Template-Type: ReDIF-Article 1.0
Author-Name: Iris Claus 
Author-X-Name-First: Iris 
Author-X-Name-Last: Claus 
Title: Estimating potential output for New Zealand 
Abstract:
  One of the main indicators of inflationary pressures used by the Reserve
 Bank of New Zealand is the output gap. An alternative to the Reserve
 Bank's incumbent measure of potential output is obtained using a
 structural vector autoregression (SVAR) methodology with long-run
 restrictions. The Reserve Bank's official measure of the output gap and
 the estimate obtained from the SVAR model tend to agree about the state of
 the cycle, especially during the 1970s and 1990s. However, during the
 1980s, the period of economic reforms, they are more dissimilar. 
Journal: Applied Economics 
Pages: 751-760 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210155168 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210155168 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:751-760




Template-Type: ReDIF-Article 1.0
Author-Name: Rachel Connelly 
Author-X-Name-First: Rachel 
Author-X-Name-Last: Connelly 
Author-Name: Jean Kimmel 
Author-X-Name-First: Jean 
Author-X-Name-Last: Kimmel 
Title: Marital status and full-time/part-time work status in child care choices 
Abstract:
  Using recent SIPP data, this study estimates two econometric models to
 study the differences in the effect of child care costs on employment
 status and differences in the mode of child care used controlling for
 employment status. For both married and single women, full-time employment
 is more elastic with respect to changes in the price of child care than
 part-time employment and employment elasticities are larger for single
 than married mothers. In the model of child care modal choice, we find
 that an increased probability of full-time employment is associated with
 an increase in the use of centre care for both married and single mothers,
 and that price elasticities of modal choice are larger for single than
 married mothers. 
Journal: Applied Economics 
Pages: 761-777 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000020841 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000020841 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:761-777




Template-Type: ReDIF-Article 1.0
Author-Name: K. Patterson 
Author-X-Name-First: K. 
Author-X-Name-Last: Patterson 
Author-Name: Saeed Heravi 
Author-X-Name-First: Saeed 
Author-X-Name-Last: Heravi 
Title: Weighted symmetric tests for a unit root: response functions, power, test dependence and test conflict 
Abstract:
  The most frequently applied test statistics for a unit root are the
 Dickey-Fuller tests, which are built into many econometric packages along
 with MacKinnon's empirical response functions. This article provides
 empirical response functions for some easy to compute alternative test
 statistics that are generally much more powerful than the Dickey-Fuller
 tests; specifically, these are the Dickey-Fuller tests and the weighted
 symmetric versions of the and tests. The empirical response functions
 presented here take into account adjustments for lag length in the
 maintained regression, and also extend the design of the simulation
 experiments compared to previous work. A second aspect of this study
 concerns the widespread practice in applied econometrics of using more
 than one test for the same feature without an assessment of the
 implications for the cumulative significance level and probability of test
 conflict. Tests for a unit root being are a leading example of this
 practice. Using the extended set of unit root tests considered here, the
 extent of test dependence is simulated and overall type one error
 calculated. Two empirical applications illustrate the key principles. 
Journal: Applied Economics 
Pages: 779-790 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000030372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000030372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:779-790




Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Lael Joseph 
Author-X-Name-First: Nathan Lael 
Author-X-Name-Last: Joseph 
Title: Using monthly returns to model conditional heteroscedasticity 
Abstract:
  This empirical study examines the extent of non-linearity in a
 multivariate model of monthly financial series. To capture the conditional
 heteroscedasticity in the series, both the GARCH(1,1) and
 GARCH(1,1)-in-mean models are employed. The conditional errors are assumed
 to follow the normal and Student- t distributions. The non-linearity in
 the residuals of a standard OLS regression are also assessed. It is found
 that the OLS residuals as well as conditional errors of the GARCH models
 exhibit strong non-linearity. Under the Student density, the extent of
 non-linearity in the GARCH conditional errors was generally similar to
 those of the standard OLS. The GARCH-in-mean regression generated the
 worse out-of-sample forecasts. 
Journal: Applied Economics 
Pages: 791-801 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684021000088536 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684021000088536 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:791-801




Template-Type: ReDIF-Article 1.0
Author-Name: P. Beneito 
Author-X-Name-First: P. 
Author-X-Name-Last: Beneito 
Title: A complete system of Engel curves in the Spanish economy 
Abstract:
  The main goal of this article is the estimation of the consumption-income
 relationship along with socio-economic factors using cross section data
 from the Spanish Household Expenditure Survey 1991. The data has been
 grouped according to exogenous criteria to avoid the problem of null
 expenditure. First, a non-linear system of equation is estimated, from
 which the linear form that best fits the used data is tested. Finally,
 income elasticities are calculated considering three alternative
 formulations depending on how an initial income increment is distributed
 among consumers. Income elasticities are shown for the whole income
 distribution 
Journal: Applied Economics 
Pages: 803-816 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000040948 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000040948 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:803-816




Template-Type: ReDIF-Article 1.0
Author-Name: Nedka Ivanova 
Author-X-Name-First: Nedka 
Author-X-Name-Last: Ivanova 
Author-Name: Philip Dawson 
Author-X-Name-First: Philip 
Author-X-Name-Last: Dawson 
Author-Name: John Lingard 
Author-X-Name-First: John 
Author-X-Name-Last: Lingard 
Title: Macroeconomic Impacts on Bulgarian Agriculture during Transition 
Abstract:
  An unstable and erratic macroeconomy in an economy in transition might be
 expected to affect agricultural performance. This is tested for Bulgaria
 between 1992 and 1997 using impulse response functions from a vector
 autoregressive (VAR) model. Despite data limitations, it is found that
 shocks to the foreign exchange rate and interest rate feed into farm
 prices and agricultural exports but equilibrium will be re-established
 within 5 years. Agricultural policies may not be sufficient to counteract
 the wider macroeconomic forces. 
Journal: Applied Economics 
Pages: 817-823 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000050595 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000050595 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:817-823




Template-Type: ReDIF-Article 1.0
Author-Name: Abdullahi Abdulkadri 
Author-X-Name-First: Abdullahi 
Author-X-Name-Last: Abdulkadri 
Title: Estimating risk aversion coefficients for dry land wheat, irrigated corn and dairy producers in Kansas 
Abstract:
  The risk attitudes of dry land wheat, irrigated corn, and dairy producers
 in Kansas are examined using the nonlinear mean-standard deviation
 approach. Results of analyses indicated that dryland wheat and dairy
 producers are characterized by increasing absolute and increasing relative
 risk aversion while irrigated corn producers are characterized by constant
 absolute and increasing relative risk aversion. Both crop enterprises
 exhibited constant returns to scale technology while the dairy enterprise
 exhibited decreasing returns to scale. Gross farm income was significant
 and positively related to relative risk aversion. 
Journal: Applied Economics 
Pages: 825-834 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003648032000050612 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003648032000050612 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:825-834




Template-Type: ReDIF-Article 1.0
Author-Name: Sharmistha Self 
Author-X-Name-First: Sharmistha 
Author-X-Name-Last: Self 
Author-Name: Richard Grabowski 
Author-X-Name-First: Richard 
Author-X-Name-Last: Grabowski 
Title: How effective is public health expenditure in improving overall health? A cross-country analysis 
Abstract:
  The primary emphasis of this paper is on seeking some justification for
 the worldwide phenomenon of increasing government involvement in
 health-care. The disability-adjusted-health-expectancy (DALE) rankings of
 countries in the World Health Report, 2000, ranked wealthier countries,
 with a typically large public sector involvement in health-care, higher on
 the list. Contrary to the possible implications for this ranking, this
 paper finds that the comparatively higher DALE in wealthier countries is
 not a result of greater public health expenditures. In the middle income
 and less developed countries, however, there is some evidence of effective
 public involvement in health-care. 
Journal: Applied Economics 
Pages: 835-845 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000056751 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056751 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:835-845




Template-Type: ReDIF-Article 1.0
Author-Name: Dennis Leech 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Leech 
Author-Name: Miguel Manjon 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Manjon 
Title: Corporate governance and game theoretic analyses of shareholder power: the case of Spain 
Abstract:
  The definition and implementation of control is at the heart of the
 corporate governance debate. The paper approaches the issue by using power
 indices derived from the theory of cooperative games. An application to
 Spanish listed firms shows that incentives for large shareholders to form
 controlling blocs are high. In the Spanish system of corporate governance
 ownership concentration is therefore the main mechanism to mitigate agency
 problems between shareholders and managers. Moreover, these results
 suggest that the Shapley-Shubik index is not an appropriate measure of
 shareholder power. 
Journal: Applied Economics 
Pages: 847-858 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000026593 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000026593 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:847-858




Template-Type: ReDIF-Article 1.0
Author-Name: Evan Tanner 
Author-X-Name-First: Evan 
Author-X-Name-Last: Tanner 
Author-Name: Alberto Ramos 
Author-X-Name-First: Alberto 
Author-X-Name-Last: Ramos 
Title: Fiscal sustainability and monetary versus fiscal dominance: evidence from Brazil, 1991-2000 
Abstract:
  Under a monetary dominant (MD) regime, the primary surplus adjusts to
 limit debt growth, permitting monetary policy to be conducted
 independently of fiscal financing requirements. In Brazil, some evidence
 favours an MD regime for 1995-1997, but not for the decade of the 1990s as
 a whole. While fiscal adjustments of 1999 yielded a primary surplus of
 about 3% of GDP, consistent with solvency, a credible MD regime would
 require further adjustments of the primary surplus if debt increases,
 growth falls, or interest rates rise. 
Journal: Applied Economics 
Pages: 859-873 
Issue: 7 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000056832 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056832 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:859-873




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Taggert Brooks 
Author-X-Name-First: Taggert 
Author-X-Name-Last: Brooks 
Title: A new criteria for selecting the optimum lags in Johansen's cointegration technique 
Abstract:
  Several test statistics like Akaike Information Criterion (AIC) or
 Schwarz Bayesian Criterion (SBC) are used to select the order of Vector
 Autoregressive Models (VAR) in Johansen's cointegration technique, but not
 the appropriate cointegrating vector in case of multiple vectors. In this
 note goodness of fit is introduced as a criterion to select the lag length
 as well as the appropriate vector simultaneously. 
Journal: Applied Economics 
Pages: 875-880 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210129419 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210129419 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:875-880




Template-Type: ReDIF-Article 1.0
Author-Name: Raul Ramos 
Author-X-Name-First: Raul 
Author-X-Name-Last: Ramos 
Author-Name: Miquel Clar 
Author-X-Name-First: Miquel 
Author-X-Name-Last: Clar 
Author-Name: Jordi Surinach 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Surinach 
Title: A dynamic analysis of asymmetric shocks in EU manufacturing 
Abstract:
  Available empirical evidence regarding the degree of symmetry between
 European economies in the context of Monetary Unification is not
 conclusive. This study offers new empirical evidence concerning this issue
 related to the manufacturing sector. Instead of using a static approach as
 most empirical studies do, the dynamic evolution of shock symmetry is
 analysed using a state-space model. The results show a clear reduction of
 asymmetries in terms of demand shocks between 1978 and 1996, with an
 increase in terms of supply shocks at the end of the period. 
Journal: Applied Economics 
Pages: 881-892 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000018178 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018178 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:881-892




Template-Type: ReDIF-Article 1.0
Author-Name: Vasco De 
Author-X-Name-First: Vasco 
Author-X-Name-Last: De 
Author-Name: A. Gabriel 
Author-X-Name-First: A. 
Author-X-Name-Last: Gabriel 
Author-Name: Artur C. B. Da Silva Lopes 
Author-X-Name-First: Artur C. B. Da Silva 
Author-X-Name-Last: Lopes 
Author-Name: Luis Nunes 
Author-X-Name-First: Luis 
Author-X-Name-Last: Nunes 
Title: Instability in cointegration regressions: a brief review with an application to money demand in Portugal 
Abstract:
  This study addresses some modelling questions related to the possibility
 of structural change in models with nonstationary variables. Focusing on
 cointegration issues, some methodological aspects are discussed,
 attempting to integrate coherently the several steps of the modelling
 strategy. These range from unit root to cointegration testing and to
 testing for instability in the cointegration vector. An empirical example
 with Portuguese data tries to illustrate the usefulness of this approach,
 where a simple money demand function is estimated using an
 error-correction model (ECM). If a break is explicitly allowed in the
 cointegration vector the forecasting performance of the ECM improves. 
Journal: Applied Economics 
Pages: 893-900 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000018187 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018187 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:893-900




Template-Type: ReDIF-Article 1.0
Author-Name: Tao Wu 
Author-X-Name-First: Tao 
Author-X-Name-Last: Wu 
Title: Stylized facts on nominal term structure and business cycles: an empirical VAR study 
Abstract:
  This paper examines the importance of various macroeconomic shocks in
 explaining the movement of the term structure of nominal bond yields in
 the post-war USA, as well as the channels through which such macro-shocks
 influence the yield curve, using a structural Vector Autoregressive (VAR)
 model. The results show that the monetary-policy and the aggregate-supply
 shocks are important determinants of the nominal term structure. Moreover,
 the monetary-policy innovations have a large but transitory effect on the
 nominal bond yields, primarily by changing the slope of the yield curve,
 and the aggregate-supply shocks from private sector have a more persistent
 effect on the level of the yield curve, but have little effect on the
 slope of the yield curve. 
Journal: Applied Economics 
Pages: 901-906 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000018204 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018204 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:901-906




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer 
Author-X-Name-First: Richard 
Author-X-Name-Last: Thalheimer 
Author-Name: Mukhtar Ali 
Author-X-Name-First: Mukhtar 
Author-X-Name-Last: Ali 
Title: The demand for casino gaming 
Abstract:
  In this study an econometric model is developed to examine the
 determinants of the demand for casino gaming, specifically the demand for
 slot machine wagering at riverboats and racinos. In addition to examining
 the effects of traditional demand variables, the effect on wagering of
 variables such as location of a wagering facility and of government
 restrictions, is examined. A unique measure of accessibility of market
 area customers to a facility and to competing facilities was developed.
 The demand for wagering at a facility was found to increase as access by
 customers in its market area increases and to decrease as access by its
 customers to competing riverboats, racinos or Indian casinos increases.
 Government restrictions were found to have an adverse effect on wagering
 at a riverboat. On the other hand, wagering at a riverboat was found to
 increase when such restrictions were imposed on competing riverboats. The
 presence of total loss limits and restrictions on boarding times at a
 riverboat were found to have reduced wagering by 36% and 35%,
 respectively. With respect to traditional demand variables, slot machine
 wagering demand was found to be price elastic at the beginning of the
 sample period declining to slightly below unit elasticity by the end of
 the period. Table games offered at a gaming facility were found to be
 substitutes for slot machines. Demand was found to be negatively related
 to per capita income at lower income levels and positively related at
 higher income levels. The proportion of income wagered was found to be
 greater at upper and lower income levels relative to middle income levels.
 Demand was found to be positively related to days of operation and number
 of slot machines. 
Journal: Applied Economics 
Pages: 907-918 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000018259 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018259 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:907-918




Template-Type: ReDIF-Article 1.0
Author-Name: Othman Yong 
Author-X-Name-First: Othman 
Author-X-Name-Last: Yong 
Author-Name: Zaidi Isa 
Author-X-Name-First: Zaidi 
Author-X-Name-Last: Isa 
Title: Initial performance of new issues of shares in Malaysia 
Abstract:
  This paper presents the levels of under-pricing for new issues in a
 developing country, Malaysia, over a more recent period, January
 1990-December 1998, than reported in prior studies. Three types of new
 issues were examined, namely public issue, offer for sale and combination
 or hybrid of offer for sale and public issue. Comparisons of initial
 return between types of new issues and between different board of listing
 were made. The results of independent t -tests for difference in mean
 initial returns indicate that, in general, there are significant
 differences in mean initial returns between types of new issues and
 between boards of listing. The results of step-wise regression reveal that
 on average, only over-subscription ratio contributes significantly to the
 initial returns. However, caution should be taken when interpreting the
 models formed because the Durbin-Watson rest indicate that some models are
 not free from problem of auto-correlation of the residuals. 
Journal: Applied Economics 
Pages: 919-930 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000020869 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000020869 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:919-930




Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Parikh 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Parikh 
Author-Name: Michiel Van Leuvensteijn 
Author-X-Name-First: Michiel 
Author-X-Name-Last: Van Leuvensteijn 
Title: Interregional labour mobility, inequality and wage convergence 
Abstract:
  The objectives of the paper are to examine the determinants of
 interregional labour migration for German regions using the data on gross
 flows of labour movements across regions. This is one of the few studies
 where data on labour migration is used. There also was a wage convergence
 after reunification between regions of East and West Germany and this to a
 certain extent provides an explanation for non-linear relationship between
 wage differences among regions and migration. As the study distinguishes
 the blue-collar and white-collar wage difference between regions,
 different relationships between migration and blue and white-collar
 workers' wage differences can be assessed. We also test the hypothesis
 whether highly skilled workers migrate to the regions where inequality is
 greater while less skilled workers tend to migrate to the regions where
 inequality is low. 
Journal: Applied Economics 
Pages: 931-941 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000035827 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035827 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:931-941




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brent 
Title: The tax implications of cost shifting in cost-benefit analysis in mental health 
Abstract:
  This paper examines the tax implications of systems of care for
 psychiatric patients that rely more on the provision of services in the
 community rather than in state hospitals. State governments pay the costs
 of patient care in state hospitals, but share costs with the federal
 government (via Medicaid) for community based care. Taxes create
 distortions as gauged by the marginal cost of public funds (MCF). Since
 state and federal governments use different tax mixes, one needs a MCF for
 each form of government to evaluate system changes. Separate estimates of
 the MCF for each state in the USA are derived. Only for Alaska is cost
 shifting welfare improving. 
Journal: Applied Economics 
Pages: 943-950 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000040966 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000040966 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:943-950




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Harris 
Author-X-Name-First: Mark 
Author-X-Name-Last: Harris 
Author-Name: Simon Feeny 
Author-X-Name-First: Simon 
Author-X-Name-Last: Feeny 
Title: Habit persistence in effective tax rates 
Abstract:
  This paper uses administrative data from the Australian Tax Office (ATO)
 to model the effective tax rates (ETRs) of large Australian corporates.
 The extent to which there is any habit persistence in ETRs is also
 examined. The results suggest that unobserved entity heterogeneity is
 important in explaining ETRs. In terms of observed heterogeneity, entity
 size, level of leverage, capital intensity, foreign income and R&D, are
 important explanators of ETRs. There is also evidence of a significant
 amount of habit persistence, implying that ETRs converge monotonically
 towards the statutory rate of corporation tax. 
Journal: Applied Economics 
Pages: 951-958 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003 684032000050577 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003 684032000050577 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:951-958




Template-Type: ReDIF-Article 1.0
Author-Name: Cemal Berk O&#x2db;uzsoy 
Author-X-Name-First: Cemal Berk 
Author-X-Name-Last: O&#x2db;uzsoy 
Author-Name: Sibel Guven 
Author-X-Name-First: Sibel 
Author-X-Name-Last: Guven 
Title: Stock returns and the day-of-the-week effect in i-super-&#x2d9;stanbul Stock Exchange 
Abstract:
  This study investigates the existence of the day-of-the-week effect on
 stock returns in the stanbul Stock Exchange (ISE) for the period between
 1988 and 1999. ISE that was established in 1986 is a rapidly growing
 emerging market for which there are only a few studies that have been
 conducted and reported. Since emerging markets are becoming good
 diversification alternatives for international investors, the analysis of
 stock return behaviour of ISE will be of interest to all investors,
 domestic and foreign. With this purpose, both ISE National 100 Composite
 Index, and 30 stocks of ISE for which trade volume is the highest are
 analysed. The analysis of ISE National 100 Composite index reveals
 strikingly low Tuesday and dominantly high Friday returns, with return
 variances at their lowest on Fridays. It is also observed that for most of
 the stocks among the 30 highly traded stocks of ISE, maximum return is on
 Fridays whereas minimum return is either on Mondays or Tuesdays with
 return variances at their highest on Mondays. Moreover for all individual
 ISE-30 stocks, the day with the maximum return is one of the days after
 the day with the minimum return. 
Journal: Applied Economics 
Pages: 959-971 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000050586 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000050586 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:959-971




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Mccloughan 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Mccloughan 
Author-Name: Esmaiel Abounoori 
Author-X-Name-First: Esmaiel 
Author-X-Name-Last: Abounoori 
Title: How to estimate market concentration given grouped data 
Abstract:
  A novel method is proposed of estimating market concentration for the
 census case in which firms are grouped into size classes and all that is
 known about the firms in each category is their number and aggregate size.
 The formula arises as a way of applying an alternative expression for the
 concentration ratio based upon the original and first moment size
 distributions of firms. The semi-parametric technique, which includes a
 method of interval as well as point estimation, is derived, applied and
 validated using actual and simulated data. It is anticipated that the
 estimator will be of use in competition analysis as well as in academic
 research. 
Journal: Applied Economics 
Pages: 973-983 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003648032000050603 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003648032000050603 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:973-983




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Title: The relative adjustment of wages and prices: direct tests within a multiple-equation system 
Abstract:
  In order to assess the relative rigidity of the aggregate price level and
 the nominal wage rate most researchers have focused on the implied
 behaviour of the real wage rate in response to a purely demand
 disturbance. The present work examines the explicit behaviour of the two
 variables and is therefore able to analyse the variables' short-run
 responses within the context of their defined long-run behaviour. While
 the paper reports evidence of long-run stability in the real wage rate,
 additional evidence is presented which supports both sticky-price and
 sticky-wage models. The determining factor is the choice of lag. 
Journal: Applied Economics 
Pages: 985-997 
Issue: 8 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000056779 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056779 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:985-997




Template-Type: ReDIF-Article 1.0
Author-Name: John Wildman 
Author-X-Name-First: John 
Author-X-Name-Last: Wildman 
Author-Name: Hugh Gravelle 
Author-X-Name-First: Hugh 
Author-X-Name-Last: Gravelle 
Author-Name: Matthew Sutton 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Sutton 
Title: Health and income inequality: attempting to avoid the aggregation problem 
Abstract:
  Attempts to test the relative deprivation hypothesis, that income
 inequality affects individual health, are subject to the aggregation
 problem. Waldmann (Quarterly Journal of Economics 107, 1992) ingeniously
 attempts to overcome the difficulty by using income data for the poor and
 the share of income accruing to the rich. The study finds that his results
 do not hold for a more recent data set and it suggests that his method may
 not overcome the aggregation problem. 
Journal: Applied Economics 
Pages: 999-1004 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000056805 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:999-1004




Template-Type: ReDIF-Article 1.0
Author-Name: Christos Ioannidis 
Author-X-Name-First: Christos 
Author-X-Name-Last: Ioannidis 
Author-Name: Mick Silver 
Author-X-Name-First: Mick 
Author-X-Name-Last: Silver 
Title: Chained, exact and superlative hedonic price changes: estimates from microdata 
Abstract:
  Scanner data are used to calculate chained, exact (and superlative)
 hedonic price indexes for television sets. The data source is available
 for a wide range of goods, the application providing an example of how
 this method can be more widely applied. The indexes correspond to constant
 utility, hedonic cost-of-living indexes. The approach improves on the
 existing direct method, which takes its estimates directly from the
 coefficients on time dummies in a hedonic regression. It also improves on
 the matched model method used by statistical agencies. The differences
 between actual price changes and exact hedonic quality-adjusted price
 changes are found to be substantial. Base-period and current-period
 weighted exact hedonic indexes are similar, thus providing good
 approximations to a superlative index. Estimates from the direct, dummy
 variable approach were compared to the superlative indexes. The
 disparities between the results argue for caution in the use of the
 direct, dummy variable approach to estimating quality-adjusted price
 changes. 
Journal: Applied Economics 
Pages: 1005-1014 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000056814 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056814 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1005-1014




Template-Type: ReDIF-Article 1.0
Author-Name: Hali Edison 
Author-X-Name-First: Hali 
Author-X-Name-Last: Edison 
Author-Name: Torsten Sl&#xf8;k 
Author-X-Name-First: Torsten 
Author-X-Name-Last: Sl&#xf8;k 
Title: The impact from changes in stock market valuations on investment: new economy versus old economy 
Abstract:
  This paper investigates whether there is a different impact from changes
 in 'new' and 'old' economy stock valuations on private investment for
 seven OECD economies. A vector autoregressive model is estimated for each
 individual country, using quarterly data over the period 1990-2000. It is
 found that the impact from changes in valuations of new economy stocks to
 investment is roughly the same in North America and in the United Kingdom
 as in continental Europe. By contrast, the impact from changes in old
 economy stock valuations on investment is, in general, larger in North
 America and in the United Kingdom than in continental Europe. Finally, the
 results suggest that in continental Europe the impact on investment from
 changes in the valuation of new economy stocks is bigger than for old
 economy stocks, whereas for North America and the United Kingdom, the
 impact is more similar. 
Journal: Applied Economics 
Pages: 1015-1023 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000066697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000066697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1015-1023




Template-Type: ReDIF-Article 1.0
Author-Name: John Eakins 
Author-X-Name-First: John 
Author-X-Name-Last: Eakins 
Author-Name: Liam Gallagher 
Author-X-Name-First: Liam 
Author-X-Name-Last: Gallagher 
Title: Dynamic almost ideal demand systems: an empirical analysis of alcohol expenditure in Ireland 
Abstract:
  This paper presents a dynamic form of the Almost Ideal Demand System
 (AIDS). Three versions of the static AIDS model are employed to determine
 the preferred long-run equilibrium model and represents the short-run
 dynamics by an error correction mechanism. This estimation procedure is
 then applied to alcohol expenditure in Ireland. The estimated point
 elasticities are consistent with previous studies and a priori
 expectations. Beer and spirits are found to be price inelastic in both the
 short and long run. While wine is price inelastic in the short run and
 price elastic in the long run. 
Journal: Applied Economics 
Pages: 1025-1036 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000066796 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000066796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1025-1036




Template-Type: ReDIF-Article 1.0
Author-Name: Swarnjit Arora 
Author-X-Name-First: Swarnjit 
Author-X-Name-Last: Arora 
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Gour Goswami 
Author-X-Name-First: Gour 
Author-X-Name-Last: Goswami 
Title: Bilateral J-curve between India and her trading partners 
Abstract:
Journal: Applied Economics 
Pages: 1037-1041 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000102172 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000102172 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1037-1041




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Rodriguez 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: Rodriguez 
Author-Name: Yiagadeesen Samy 
Author-X-Name-First: Yiagadeesen 
Author-X-Name-Last: Samy 
Title: Analysing the effects of labour standards on US export performance. A time series approach with structural change 
Abstract:
  The empirical effects of different measures of labour standards on the
 export performance of the United States are analysed using annual data for
 the period 1950-1998, applying a time series approach based on the
 structural change literature. Hence, a model with endogenous breaks is
 estimated following the methodology proposed by Bai and Perron
 (Econometrica, 66, 47-78, 1998). The results show that the labour
 standards, represented by the number of hours worked, the rate of
 occupational injuries and the unionization rate, are all very important to
 explain the behaviour of exports for the United States. In particular, it
 is found that low labour standards may both improve or lead to a
 deterioration in export performance. 
Journal: Applied Economics 
Pages: 1043-1051 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000079161 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000079161 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1043-1051




Template-Type: ReDIF-Article 1.0
Author-Name: Carol Newman 
Author-X-Name-First: Carol 
Author-X-Name-Last: Newman 
Author-Name: Maeve Henchion 
Author-X-Name-First: Maeve 
Author-X-Name-Last: Henchion 
Author-Name: Alan Matthews 
Author-X-Name-First: Alan 
Author-X-Name-Last: Matthews 
Title: A double-hurdle model of Irish household expenditure on prepared meals 
Abstract:
  In this paper, Irish households' expenditure on prepared meals for home
 consumption is analysed using the 1987 and 1994 Irish Household Budget
 Survey datasets. The aim of the paper is to analyse the factors
 influencing Irish households' decisions to purchase prepared meals and how
 much to spend on these food items. This is done using the double-hurdle
 methodology adjusted for the problems of heteroscedasticity and
 non-normality. Income elasticities are estimated for household expenditure
 on prepared meals in both years and significant socioeconomic influences
 are identified. These socioeconomic factors are assumed to underpin the
 tastes and preferences of Irish households, with convenience identified as
 a significant preference of many household groups. 
Journal: Applied Economics 
Pages: 1053-1061 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000079170 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000079170 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1053-1061




Template-Type: ReDIF-Article 1.0
Author-Name: Walter Enders 
Author-X-Name-First: Walter 
Author-X-Name-Last: Enders 
Author-Name: Gary Hoover 
Author-X-Name-First: Gary 
Author-X-Name-Last: Hoover 
Title: The effect of robust growth on poverty: a nonlinear analysis 
Abstract:
  Previous research has shown that economic growth should help to reduce
 the rate of poverty. However, a number of recent studies have found that
 the economic expansion of the 1980s had no statistically significant
 effect on aggregate poverty. It is shown that both a Threshold regression
 and a Fourier approximation provide a better empirical model of poverty
 than the standard linear model. It is noteworthy that the nonlinear
 specifications show a large and significant effect on poverty of the 1980s
 expansion. 
Journal: Applied Economics 
Pages: 1063-1071 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000080871 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000080871 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1063-1071




Template-Type: ReDIF-Article 1.0
Author-Name: Karen Gerard 
Author-X-Name-First: Karen 
Author-X-Name-Last: Gerard 
Author-Name: Marian Shanahan 
Author-X-Name-First: Marian 
Author-X-Name-Last: Shanahan 
Author-Name: Jordan Louviere 
Author-X-Name-First: Jordan 
Author-X-Name-Last: Louviere 
Title: Using stated preference discrete choice modelling to inform health care decision-making: A pilot study of breast screening participation 
Abstract:
  This study was an important start to explore the feasibility of applying
 stated preference discrete choice modelling (SPDCM) for use in developing
 breast screening participation enhancement strategies. It needs to be
 followed by further research to establish model validity and authoritative
 results. In the meantime a random effects binary probit choice model was
 estimated using a main effects with selected 2-way interaction design and
 a convenience sample of Australian breast cancer screening participants. A
 response rate of 48% was obtained. Clear preferences for different service
 configurations were revealed and used to demonstrate how potential
 strategies to enhance future participation rates of women placed on
 routine recall could be identified. As anticipated accuracy of screening
 was the most important attribute of the service to influence the
 probability of uptake but others were screening time, travel time,
 information about screening benefits and the desire for privacy lending
 support to the view that benefit assessment goes beyond health factors. In
 summary, the SPDCM approach can be regarded as a judicious approach for
 helping decision-makers improve screening participation. 
Journal: Applied Economics 
Pages: 1073-1085 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000081348 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081348 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1073-1085




Template-Type: ReDIF-Article 1.0
Author-Name: M. Isabel Campos 
Author-X-Name-First: M. Isabel 
Author-X-Name-Last: Campos 
Author-Name: Zenon Jimenez-Ridruejo 
Author-X-Name-First: Zenon 
Author-X-Name-Last: Jimenez-Ridruejo 
Title: Were the peseta exchange rate crises forecastable during target zone period? 
Abstract:
  During the 1990s several fixed or quasi-fixed exchange rate systems
 collapsed. Currency crises have happened in both developed and emerging
 countries so it is necessary to forecast and avoid them. However,
 financial market crises have been extremely difficult to forecast.
 Economic agents' expectations are nonobservable variables that cannot be
 ignored in the models. In addition, if it is required to study the
 European case during the 1990s, the censored disposition of the exchange
 rate cannot be ignored either. A discrete time target zones model is
 proposed where these aspects are taken into account. It will be tested in
 a peseta/deutsche mark exchange rate framework, from June 1989 to December
 1998. The results indicate differences between before and after the shift
 in band widths in August 1993. 
Journal: Applied Economics 
Pages: 1087-1099 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000081320 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081320 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1087-1099




Template-Type: ReDIF-Article 1.0
Author-Name: Helen Robinson 
Author-X-Name-First: Helen 
Author-X-Name-Last: Robinson 
Title: Are you experienced? British evidence on age-earnings profiles 
Abstract:
  Using UK data, evidence is provided that the widely used quadratic
 earnings function may fare badly as indicated by recent work in the USA.
 Using data from pooled time series of cross-sections from the General
 Household Survey the suitability of the quadratic specification alongside
 higher order polynomials is investigated on samples of men and, for the
 first time in work of this type, women working full-time. It is found that
 the quadratic specification understates earnings growth at low levels of
 experience, especially for those workers with few formal qualifications.
 The usage of higher order polynomials provides a better fit. 
Journal: Applied Economics 
Pages: 1101-1115 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000082059 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000082059 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1101-1115




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Leybourne 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Leybourne 
Author-Name: Paul Newbold 
Author-X-Name-First: Paul 
Author-X-Name-Last: Newbold 
Title: Spurious rejections by cointegration tests induced by structural breaks 
Abstract:
  The effects on three cointegration tests are examined when the series
 analysed are independent integrated processes, each with a structural
 break. Although there are differences in detail among the tests, the
 results indicate in all cases that, when structural breaks are neglected
 in the analysis, spurious rejections, indicating the presence of
 cointegration, can occur. 
Journal: Applied Economics 
Pages: 1117-1121 
Issue: 9 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0203684032000082068 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0203684032000082068 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1117-1121




Template-Type: ReDIF-Article 1.0
Author-Name: Young-Han Kim 
Author-X-Name-First: Young-Han 
Author-X-Name-Last: Kim 
Title: International policy coordination for financial market stability in the Asian economies 
Abstract:
  Based on the understanding of financial crisis as the self-fulfilling
 crisis of speculators belief system, this paper examines the feasibility
 of introducing the Tobin tax system to reduce financial volatility in the
 Asian foreign exchange markets. The model analysis in this paper provides
 the following policy implications. To reduce the motivation to deviate
 from the policy coordination, it is required to allow all tax revenues to
 collecting countries, especially to Singapore and Hong Kong. Even without
 the participation of the major western countries, the start of the tax
 policy coordination in the Asian region can have significant signalling
 effects to reduce speculative motivation. 
Journal: Applied Economics 
Pages: 1123-1132 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210161800 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161800 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1123-1132




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Maeso-Fernandez 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Maeso-Fernandez 
Title: A time series approach to g convergence 
Abstract:
  This paper applies time series analysis to study how the gap between a
 number of countries and the USA evolves through time. As other authors, it
 is found that time series analysis provides a better insight into the
 concept of convergence than the cross sectional one. The econometric
 results show that the stochastic behaviour of the output disparity varies
 considerably: neither the steady-state equilibrium nor the speed of
 convergence are unique and constant across countries and time. In general,
 there is catching up for European countries, convergence for East and
 South Asian countries, and neither of them for Latin American countries. 
Journal: Applied Economics 
Pages: 1133-1146 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000026584 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000026584 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1133-1146




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Apergis 
Author-Name: Anthony Rezitis 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Rezitis 
Title: An examination of Okun's law: evidence from regional areas in Greece 
Abstract:
  This paper estimates Okun's coefficient for certain regional areas in
 Greece over the period 1960-1997. Through the Hodrick-Prescott filtering
 and the band-pass filtering the empirical analysis shows that that the
 coefficients do not exhibit substantial interregional differences, except
 for the cases of Epirus and North Aegean Islands. In these two cases, the
 estimates are larger than the regional average under both detrending
 methodologies. The empirical findings also show that Okun's relationship
 undergoes a structural change in 1981. After this break, unemployment
 becomes less responsive to output changes in all regional areas. 
Journal: Applied Economics 
Pages: 1147-1151 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000066787 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000066787 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1147-1151




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Jowett 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Jowett 
Title: Do informal risk sharing networks crowd out public voluntary health insurance? Evidence from Vietnam 
Abstract:
  Many governments in low-income countries have promoted voluntary health
 insurance schemes in recent years, with the principal aim of improving
 access to services amongst those working in the informal economy. Few
 attempts to understand demand for such schemes exist, particularly in
 light of the importance of informal social security arrangements for many
 households. A model of demand for health insurance is developed reflecting
 this context, and estimated using data from Vietnam. The results show that
 informal financial networks may crowd out government promoted health
 insurance. Implications for theory and policy are discussed. 
Journal: Applied Economics 
Pages: 1153-1161 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000079152 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000079152 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1153-1161




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Zuehlke 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Zuehlke 
Title: Estimation of a Tobit model with unknown censoring threshold 
Abstract:
  Conventional wisdom suggests that only the estimated intercept is
 affected by imposition of a zero censoring threshold on a Tobit model.
 This is true for Heckman-Lee estimation. For maximum likelihood (ML)
 estimation, however, it is only true if the censoring threshold is known
 and is subtracted from the dependent variable. Failure to properly
 transform the dependent variable prior to ML estimation of a zero
 threshold Tobit model will generally bias the coefficient estimates. A
 long neglected topic is ML estimation of a Tobit model with common, but
 unknown, censoring threshold. This paper shows that the ML estimator of
 the censoring threshold is the minimum order statistic from the observed
 subsample, and that existing software for estimation of a zero-threshold
 Tobit model is easily adapted to include estimation of the censoring
 threshold. 
Journal: Applied Economics 
Pages: 1163-1169 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000081339 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081339 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1163-1169




Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Augier 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Augier 
Author-Name: Michael Gasiorek 
Author-X-Name-First: Michael 
Author-X-Name-Last: Gasiorek 
Title: The welfare implications of trade liberalization between the Southern Mediterranean and the EU 
Abstract:
  The impact on the Southern Mediterranean Countries (SMC) of the current
 process of trade liberalization with the European Union is explored. The
 methodology is that of computable general equilibrium modelling under
 imperfect competition and the model includes ten countries and 11 sectors.
 This allows for both a cross-country and cross-sectoral analysis of the
 results. The experiments considered are the full liberalization of
 tariffs, as well as changes in market access and trade-induced changes in
 productivity. A key feature of the paper is that the phased introduction
 of tariff reductions is allowed for as explicitly envisaged in the
 Agreements. The results show that the process of liberalization may have a
 substantial, though non-monotonic, impact on the SMC economies in terms of
 both changes in production and through this on welfare. The welfare impact
 is potentially very high in particular for the high tariff economies. The
 sources of the welfare gain tend to derive from perfectly competitive
 explanations of trade for the high tariff economies, and from imperfectly
 competitive explanations of trade for the low tariff economies. 
Journal: Applied Economics 
Pages: 1171-1190 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000081311 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081311 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1171-1190




Template-Type: ReDIF-Article 1.0
Author-Name: Q. Weninger 
Author-X-Name-First: Q. 
Author-X-Name-Last: Weninger 
Author-Name: I. E. Strand 
Author-X-Name-First: I. E. 
Author-X-Name-Last: Strand 
Title: An empirical analysis of production distortions in the mid-Atlantic surf clam and ocean quahog fishery 
Abstract:
  This paper presents empirical evidence of production distortions under
 controlled access management in the Mid-Atlantic surf clam and ocean
 quahog fishery. Results indicate that vessels harvested multiple clam
 species even though the harvest technology exhibits diseconomies of scope.
 Vessels also operated in a region of the production surface where the
 marginal product of vessel capital services was negative. These
 distortions are explained by perverse regulations which restricted vessel
 capital replacement and severely limited fishing times. 
Journal: Applied Economics 
Pages: 1191-1197 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000086073 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000086073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1191-1197




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Cohn 
Author-X-Name-First: Richard 
Author-X-Name-Last: Cohn 
Author-Name: Bharat Kolluri 
Author-X-Name-First: Bharat 
Author-X-Name-Last: Kolluri 
Title: Determinants of household saving in the G-7 countries: recent evidence 
Abstract:
  This paper employs data from the last four decades to analyse major
 determinants of household saving for the Group of Seven (G-7) nations.
 Particular attention is paid to the effects of interest rates, government
 saving, and social security contributions. Regression analysis is used to
 control for the effects of both the level and changes in income per capita
 and inflation. 
Journal: Applied Economics 
Pages: 1199-1208 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090645 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1199-1208




Template-Type: ReDIF-Article 1.0
Author-Name: Armando Barrientos 
Author-X-Name-First: Armando 
Author-X-Name-Last: Barrientos 
Title: The labour market and economic risk: 'friend' or 'foe'? 
Abstract:
  This paper examines the twofold role of the labour market in household
 economic risk management: as a source of household consumption risk, and
 as an instrument for insuring consumption against contingencies. It
 outlines a framework for analysing this twofold role of the labour market,
 and uses data from the British Household Panel Survey 1991-1996 to explore
 this empirically. It identifies the relative importance of the labour
 market, and other factors, in producing changes in the financial situation
 of individuals. It also implements 'full insurance' tests of whether
 unemployment and other external shocks to the household are correlated
 with consumption growth. It concludes that labour market factors are a
 dominant source of change in individuals financial situation, with a
 predominantly positive effect on the financial situation of the better
 off, and a predominantly negative impact on the financial situation of the
 less well off. It also finds that households are unable to fully insure
 their consumption against unemployment, and that as a result labour market
 factors pose a significant economic risk. 
Journal: Applied Economics 
Pages: 1209-1217 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090672 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090672 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1209-1217




Template-Type: ReDIF-Article 1.0
Author-Name: Samarjit Das 
Author-X-Name-First: Samarjit 
Author-X-Name-Last: Das 
Title: Modelling money, price and output in India: a vector autoregressive and moving average (VARMA) approach 
Abstract:
  The present study has two purposes. First, the study examines the most
 substantive and debatable question: Is there any long-run relationship
 among money, price and output? It has been found by applying different
 tests of cointegration that there is no long-run relationship among these
 three variables in cointegration sense. Second, having ascertained that
 the variables under study are not cointegrated, an attempt is made to
 explore the short-run relationship among money, price and output
 exploiting the characteristics of the Vector Autoregressive and Moving
 Average (VARMA) model. Sub-set concept has been used to identify the
 best-fitted VARMA model. The paper concludes the following: (i) both money
 and price affect each other and there exists bi-directional causality;
 (ii) output affects price and there is also feedback between price and
 output; and (iii) money unidirectionally affects output. Various
 consequences of cointegration on parameter estimates of pure VAR/VARMA in
 difference have been discussed. Here it may be mentioned that pure
 VAR/VARMA in differences is not misspecified, as it could have been
 otherwise in the case where variables are cointegrated. However, as VARMA
 is more parsimonious than VAR, the VARMA model has been considered here.
 Attention has been paid regarding the proper transformations of the
 variables. 
Journal: Applied Economics 
Pages: 1219-1225 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090726 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090726 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1219-1225




Template-Type: ReDIF-Article 1.0
Author-Name: Jenny Williams 
Author-X-Name-First: Jenny 
Author-X-Name-Last: Williams 
Author-Name: Lisa Powell 
Author-X-Name-First: Lisa 
Author-X-Name-Last: Powell 
Author-Name: Henry Wechsler 
Author-X-Name-First: Henry 
Author-X-Name-Last: Wechsler 
Title: Does alcohol consumption reduce human capital accumulation? Evidence from the College Alcohol Study 
Abstract:
  It is often conjectured that a significant cost of youthful drinking is
 the future labour market consequences of having accumulated a lower stock
 of human capital. While several studies have investigated the effect of
 youthful drinking on the quantity of human capital stock accumulated,
 measured by years of education completed or high-school graduation, this
 paper investigates the effect of alcohol consumption on the quality of
 human capital stock accumulated as measured by college students GPA. Using
 data from the Harvard School of Public Health's College Alcohol Study, the
 indirect effect of the quantity of alcohol consumed on GPA is estimated
 through hours spent studying as well as the direct effect. Results show
 that the net total effect of alcohol consumption on GPA is negative for
 the sample of college students, and that the main effect is via a
 reduction in the hours spent studying. This finding confirms that high
 levels of alcohol consumption have an overall negative consequence for
 academic achievement, and hence future labour market outcomes. 
Journal: Applied Economics 
Pages: 1227-1239 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090735 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090735 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1227-1239




Template-Type: ReDIF-Article 1.0
Author-Name: Donna Brown 
Author-X-Name-First: Donna 
Author-X-Name-Last: Brown 
Author-Name: Steven McIntosh 
Author-X-Name-First: Steven 
Author-X-Name-Last: McIntosh 
Title: Job satisfaction in the low wage service sector 
Abstract:
  The stylized facts associated with workers satisfaction are tested using
 a distinctive data set. Using principal components analysis five distinct
 measures of workers satisfaction, and the factors that determine each one
 are examined. The data set, covering three low-wage service sectors,
 enables control for workplace characteristics to be made. It is shown that
 characteristics previously identified as important by the job satisfaction
 literature, in fact have differing effects according to the type of
 satisfaction being considered. Then is examined which of the satisfaction
 components has the greatest impact on overall satisfaction. Satisfaction
 with short-term rewards and long-term prospects are found to be far more
 influential in determining overall satisfaction, than contentment with
 social relationships or work intensity. 
Journal: Applied Economics 
Pages: 1241-1254 
Issue: 10 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210150875 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210150875 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1241-1254




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Sibbald 
Author-X-Name-First: Alexander 
Author-X-Name-Last: Sibbald 
Author-Name: Lynn McAlevey 
Author-X-Name-First: Lynn 
Author-X-Name-Last: McAlevey 
Title: Examination of economies of scale in credit unions: a New Zealand study 
Abstract:
  Recent government pressure and aspirations within the industry itself to
 improve financial stability, have seen credit unions pursue economies of
 scale to achieve this objective. This presented an opportunity to test the
 validity of this strategy. However, this study is uncommon, as it utilized
 the credit union population as the unit of analysis, rather than a sample,
 prevalent in other research. As a consequence this overcomes difficulties
 associated with multiple testings, and other statistical problems present
 in some other previous studies. By drawing upon two measures of
 operational efficiency, viz. operating costs to income and operating costs
 to total assets, inconclusive evidence of scale economies was found. While
 clear efficiency improvement occurred in moving from small to medium sized
 organisations, less compelling was the evidence of economies of scale in
 larger credit unions. Although the article followed a conventional
 cross-sectional methodology by examining performance at a moment in time,
 the study also adopted a longitudinal case study approach, by examining
 over time the efficiency of a large credit union. Finally, the measure
 used, inclusion or exclusion of outliers, and the operational efficiency
 ratio chosen, all effect the outcome, and either showed evidence of
 economies or diseconomies, of scale. 
Journal: Applied Economics 
Pages: 1255-1264 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840210148012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148012 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1255-1264




Template-Type: ReDIF-Article 1.0
Author-Name: Bijou Yang 
Author-X-Name-First: Bijou 
Author-X-Name-Last: Yang 
Author-Name: Philip Lo 
Author-X-Name-First: Philip 
Author-X-Name-Last: Lo 
Author-Name: David Lester 
Author-X-Name-First: David 
Author-X-Name-Last: Lester 
Title: Purchasing textbooks online 
Abstract:
  In a sample of 72 undergraduate students at a university, purchasing
 textbooks online was predicted by possession of computer/Internet skills,
 having a retentive attitude towards money and dissatisfaction with the
 university bookstore. 
Journal: Applied Economics 
Pages: 1265-1269 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090681 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090681 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1265-1269




Template-Type: ReDIF-Article 1.0
Author-Name: A. Nikolaou 
Author-X-Name-First: A. 
Author-X-Name-Last: Nikolaou 
Author-Name: I. Theodossiou 
Author-X-Name-First: I. 
Author-X-Name-Last: Theodossiou 
Title: Living in unemployment or who experiences a high unemployment burden? 
Abstract:
  The paper examines the distribution of unemployment experience in Britain
 within the framework of the Han and Hausman semi-parametric estimator,
 which has the advantage of circumventing problems associated with
 individual heterogeneity arising from unobserved individual
 characteristics. The results imply that the unemployment burden is
 unequally distributed among the working population. Males and females bear
 an unequal unemployment burden. The study casts light on the
 characteristics of those individuals who are most likely to experience a
 high unemployment burden. 
Journal: Applied Economics 
Pages: 1271-1276 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/003684032000090690 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/003684032000090690 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1271-1276




Template-Type: ReDIF-Article 1.0
Author-Name: Margaret Giles 
Author-X-Name-First: Margaret 
Author-X-Name-Last: Giles 
Title: Correcting for selectivity bias in the estimation of road crash costs 
Abstract:
  Police road crash data comprise a non-random sample of the true
 population of road crashes, the bias being due to the existence of crashes
 that are not notified to the Police. Heckman viewed similar problems as
 'omitted variables' problems in that the exclusion of some observations in
 a systematic manner (so-called selectivity bias) has inadvertently
 introduced the need for an additional regressor in least squares
 procedures. In the case of Police road crash data, selectivity bias arises
 from factors affecting the notification of crashes to the Police, such as
 the number of vehicles in the crash and the type and location of the
 crash. Using Heckman's methodology for correcting for this selectivity
 bias, Police road crash data for Western Australia are reconciled with
 total road crash data in the estimation of the property damage costs of
 road crashes. 
Journal: Applied Economics 
Pages: 1291-1301 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090717 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090717 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1291-1301




Template-Type: ReDIF-Article 1.0
Author-Name: Stefka Slavova 
Author-X-Name-First: Stefka 
Author-X-Name-Last: Slavova 
Title: Money demand during hyperinflation and stabilization: Bulgaria, 1991-2000 
Abstract:
  The demand for money in Bulgaria is estimated over a ten-year period
 (1991-2000) of high inflation and inflation uncertainty. The paper
 distinguishes between three well-defined sub-periods: high, variable, but
 not systematically accelerating inflation from 1991 until April 1996; the
 near-hyperinflation period from May 1996 to February 1997; and the
 subsequent stabilization after the adoption of a currency board. The
 empirical analysis utilizes a standard methodology of cointegration and
 error correction. The functional determinants of the demand for money
 change during the different sub-periods. During the hyperinflation
 episode, Cagan's model is employed. 
Journal: Applied Economics 
Pages: 1303-1316 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/003684032000095398 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/003684032000095398 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1303-1316




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dietrich 
Author-X-Name-First: Michael 
Author-X-Name-Last: Dietrich 
Title: The importance of management and transaction costs for large UK firms 
Abstract:
  This article develops an approach to the firm using the principle that
 any organization is an amalgam of two production functions: a control
 function and a real function. The resulting non-linear regression equation
 allows estimation of model parameters that can be used to calculate
 firm-specific production and transaction costs. The paper uses a sample of
 large UK firms for the four years 1980, 1986, 1992 and 1997. The parameter
 and cost estimates appear intuitively plausible given developments in
 competitive conditions and environmental uncertainties. Broadly speaking
 the results support the view that transaction cost economizing is a
 primary determinant of improved firm performance. This result is
 particularly apparent when monopoly power and the positive dynamic
 advantages of firm slack are identified. 
Journal: Applied Economics 
Pages: 1317-1329 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000095406 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095406 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1317-1329




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick McCarthy 
Author-X-Name-First: Patrick 
Author-X-Name-Last: McCarthy 
Title: Alcohol-related crashes and alcohol availability in grass-roots communities 
Abstract:
  This paper employs a unique panel data from 111 small non-metropolitan
 incorporated cities in California during a 108 month period from January
 1981 to December 1989 in order to analyse the effect of alcohol
 availability on highway safety. Negative binomial regression models are
 estimated which include alcohol licences per square mile as a measure of
 alcohol availability. Theoretically, the sign of the alcohol licence
 density is indeterminate as it reflects a trade-off of its effect on
 traffic exposure and on the time price alcohol. Among the findings,
 increases in the density of general alcohol licences for off-site
 (on-site) alcohol consumption are beneficial (detrimental) to highway
 safety whereas increasing the density of beer/wine licences have
 non-uniform effects. Additional findings important to municipal
 policymakers are that DUI arrests and increasing the price of alcohol
 reduce alcohol-related crashes. 
Journal: Applied Economics 
Pages: 1331-1338 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000095929 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095929 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1331-1338




Template-Type: ReDIF-Article 1.0
Author-Name: Niek Nahuis 
Author-X-Name-First: Niek 
Author-X-Name-Last: Nahuis 
Title: An alternative demand indicator: the 'non-accelerating inflation rate of capacity utilization' 
Abstract:
  This article examines the usefulness of the NAIRCU, the 'non-accelerating
 inflation rate of capacity utilization' as a demand indicator of inflation
 for eight European countries. So far the NAIRCU has been estimated for the
 USA only, where it serves as a useful indicator for inflation. In most
 European countries, deviations from the equilibrium level of capacity
 utilization influence inflation significantly. Further, the results not
 only indicate that in more recent periods the NAIRCU has shifted upward,
 indicating higher efficiency of the production process, but also that
 confidence intervals have increased over time reducing the usefulness of
 the NAIRCU somewhat. 
Journal: Applied Economics 
Pages: 1339-1344 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000095947 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095947 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1339-1344




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Bailey 
Author-X-Name-First: Mark 
Author-X-Name-Last: Bailey 
Title: The labour market participation of Northern Ireland University Students 
Abstract:
  This paper seeks to examine what factors are associated with student
 labour force participation in Northern Ireland in both term-time and
 vacation making use of Quarterly Labour Force Survey data for the period
 March 1998-February 1999. The results suggest female students are more
 likely to work than male students, mature students are less likely to work
 than non-mature students, Roman Catholic students are less likely to work
 than non-Roman Catholic students, students living at home are more likely
 to work than student living away from home and an increase in the actual
 or predicted wage increases the probability of labour force participation.
 The author suggests that some of these results are due to the particular
 nature of the Northern Ireland socio-economic situation while others are
 likely to be true for the rest of the United Kingdom. 
Journal: Applied Economics 
Pages: 1345-1350 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000100328 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1345-1350




Template-Type: ReDIF-Article 1.0
Author-Name: Tanweer Akram 
Author-X-Name-First: Tanweer 
Author-X-Name-Last: Akram 
Title: The international foreign aid regime: who gets foreign aid and how much? 
Abstract:
  This paper analyses the data on international foreign aid. It examines
 the basic data on who gets foreign aid, how much, how aid dependent are
 the recipient countries, and how the international foreign aid regime has
 evolved. It is argued that the pattern of the flow of foreign aid suggests
 that aid provided has little relationship to human needs in developing and
 transitional countries. 
Journal: Applied Economics 
Pages: 1351-1356 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000100337 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100337 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1351-1356




Template-Type: ReDIF-Article 1.0
Author-Name: Stuart Fraser 
Author-X-Name-First: Stuart 
Author-X-Name-Last: Fraser 
Author-Name: David Paton 
Author-X-Name-First: David 
Author-X-Name-Last: Paton 
Title: Does advertising increase labour supply? Time series evidence from the UK 
Abstract:
  Wages in industrialized countries have risen considerably during the last
 50 years, whereas hours worked, for manual workers at least, have
 decreased only marginally. In Europe, one policy response has been to
 attempt to protect workers from pressure to work long hours by placing
 legal restrictions on the amount of hours that may be worked each week.
 This paper examines the possibility that, in fact, observed hours may be
 the result of a desire of workers to work longer due to a shift in their
 preferences from leisure to increased consumption, caused by the huge
 increase in mass media advertising. A cointegrating VAR framework is used
 to test this hypothesis on UK time series data for both males and females
 from 1952 to 1997. Advertising is shown to be positively associated with
 hours worked for both male and female series. Causality tests indicate
 unidirectional causality, for males and females, from advertising to hours
 worked. These results suggest that the European policy response is more
 likely to restrict employee rather than employer discretion over hours. 
Journal: Applied Economics 
Pages: 1357-1368 
Issue: 11 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000100346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1357-1368




Template-Type: ReDIF-Article 1.0
Author-Name: Christis Tombazos 
Author-X-Name-First: Christis 
Author-X-Name-Last: Tombazos 
Title: New light on the 'impressionistic view' of the balancing item in Australia's balance of payments accounts 
Abstract:
  Recently, Fausten and Brooks offered (what they refer to as) an
 'impressionistic view' of the temporal evolution of Australia's balancing
 item, which is a measure of the accuracy of the balance of payments
 accounts. They claim that the balancing item 'has been increasing in
 magnitude and volatility, violating with increasing frequency
 internationally agreed acceptability criteria for smallness. In the
 present paper it is shown that Fausten and Brooks results derive from data
 that incorporates excessively a dynamically asymmetric concentration of
 revisions and is therefore unsuitable for statistical analysis. This paper
 develops, and empirically evaluates, a model of the process of revisions
 of balance of payments data. This model illustrates that dynamically
 inconsistent time series of the balancing item, such as that employed by
 Fausten and Brooks, are bound to generate an artificial impression that it
 follows an 'explosive' time trend. Subsequently, it is illustrated that
 when alternative, dynamically consistent editions of the balancing item
 data for the same period as that examined by Fausten and Brooks are
 employed, their results are reversed. Indeed, the findings here contradict
 diametrically the conclusions of these authors by suggesting that the
 decline in the frequency of balancing item 'violations' observed in the
 latter portion of the relevant time period is unparalleled in the history
 of the balance of payments accounts. 
Journal: Applied Economics 
Pages: 1369-1378 
Issue: 12 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000129354 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000129354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1369-1378




Template-Type: ReDIF-Article 1.0
Author-Name: Venus Khim-Sen Liew 
Author-X-Name-First: Venus Khim-Sen 
Author-X-Name-Last: Liew 
Author-Name: Terence Tai-Leung Chong 
Author-X-Name-First: Terence Tai-Leung 
Author-X-Name-Last: Chong 
Author-Name: Kian-Ping Lim 
Author-X-Name-First: Kian-Ping 
Author-X-Name-Last: Lim 
Title: The inadequacy of linear autoregressive model for real exchange rates: empirical evidence from Asian economies 
Abstract:
  Utilizing the formal linearity test of Luukkonen, Saikkonen and
 Terasvirta (Biometrika, 75, 491-499, 1998) as diagnostic tool, the
 empirical finding suggests that the linear autoregressive (AR) model is
 inadequate in describing the real exchange rates behaviour of 11 Asian
 economies. It is noted that the conventional battery of diagnostic tests
 is capable of identifying the inadequacy of the linear model in only three
 of these series. Moreover, the linearity nature of this behaviour has been
 formally rejected in favour of the non-linear smooth transition
 autoregressive (STAR) model. The finding of non-linearity in the data
 generating process of these real exchange rates warrants that the use of
 linear framework in empirical modelling and statistical testing procedures
 in the field of exchange rates may lead to an inappropriate policy
 conclusions. 
Journal: Applied Economics 
Pages: 1387-1392 
Issue: 12 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000129750 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000129750 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1387-1392




Template-Type: ReDIF-Article 1.0
Author-Name: Kerim Peren Arin 
Author-X-Name-First: Kerim Peren 
Author-X-Name-Last: Arin 
Author-Name: Cagla Okten 
Author-X-Name-First: Cagla 
Author-X-Name-Last: Okten 
Title: The determinants of privatization prices: evidence from Turkey 
Abstract:
  This paper analyses the determinants of privatization prices in a
 multi-industry study using a sample of 68 recently privatized firms from
 Turkey. Results show that revenue and market characteristics are
 significant determinants of privatization prices while current cost and
 profit indicators are not. It is argued that potential buyers regard these
 state firms as inefficient, therefore do not take into consideration their
 current costs and profits in determining their value. When the dependent
 variable is altered by dividing the firm's privatization price by the
 firm's sales (revenues), it is found that sales-adjusted privatization
 prices are responsive to firms profit margins. However, this result does
 not hold when the sample is restricted to a single industry. Profit
 margins along with other profitability and firm efficiency measures are no
 longer significant determinants of sales-adjusted privatization prices in
 the cement industry analysis. Unexploited production opportunities
 measured by capacity utilization ratios, and complete private ownership
 resume a more important role. 
Journal: Applied Economics 
Pages: 1393-1404 
Issue: 12 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000100391 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100391 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1393-1404




Template-Type: ReDIF-Article 1.0
Author-Name: Kivilcim Metin Ozcan 
Author-X-Name-First: Kivilcim Metin 
Author-X-Name-Last: Ozcan 
Author-Name: Asli Gunay 
Author-X-Name-First: Asli 
Author-X-Name-Last: Gunay 
Author-Name: Seda Ertac 
Author-X-Name-First: Seda 
Author-X-Name-Last: Ertac 
Title: Determinants of private savings behaviour in Turkey 
Abstract:
  This study investigates the effects on private saving rates of a number
 of policy and non-policy variables. The analysis covers the period
 1968-1994. The empirical private saving model for Turkey is estimated. The
 findings support the hypothesis that private saving rates have strong
 inertia. The evidence indicates that government saving does not tend to
 crowd out private savings and the Ricardian equivalence does not hold
 strictly. Income level has a positive impact on private saving rate, and
 growth rate of income is not statistically significant. From a policy
 point of view, financial depth and development measures in Turkey suggest
 that countries with deeper financial systems tend to have higher private
 saving rates. Private credit and real interest rates try to capture the
 severity of the borrowing constraints and the degree of financial
 repression for Turkey. Moreover, the negative impact of life expectancy
 rate lends support to the life-cycle hypothesis. The precautionary motive
 for saving is supported by the findings that inflation captures the degree
 of macroeconomic volatility and has a positive impact on private saving in
 Turkey. 
Journal: Applied Economics 
Pages: 1405-1416 
Issue: 12 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000100373 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1405-1416




Template-Type: ReDIF-Article 1.0
Author-Name: Zhongmin Wu 
Author-X-Name-First: Zhongmin 
Author-X-Name-Last: Wu 
Title: The persistence of regional unemployment: evidence from China 
Abstract:
  The purpose of this paper is to examine the persistence of regional
 unemployment and to explore the sources of this persistence. Evidence from
 China suggests three empirical findings. First, provincial relative
 unemployment is more persistent than aggregate unemployment. Second, youth
 unemployment is less persistent than total unemployment. Third, although
 the western region has the highest provincial unemployment rate, it has
 the lowest persistence of regional unemployment. To explore the sources of
 this unemployment persistence, a panel data method has been developed
 based on the Barro Approach and Edwards work. The higher the share of
 industry output by state sector and collective sector, the more the
 regional unemployment persistence. The private sector is the main
 employment destination for jobless now and has acted to reduce
 unemployment persistence. 
Journal: Applied Economics 
Pages: 1417-1421 
Issue: 12 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000100364 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100364 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1417-1421




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Fernandez-Serrano 
Author-X-Name-First: Jose 
Author-X-Name-Last: Fernandez-Serrano 
Author-Name: Simon Sosvilla-Rivero 
Author-X-Name-First: Simon 
Author-X-Name-Last: Sosvilla-Rivero 
Title: Modelling the linkages between US and Latin American stock markets 
Abstract:
  This paper examines the linkages between US and Latin American stock
 markets during the 1995-2002 period using recently developed cointegration
 techniques that allow for structural shifts in the long-run relationship.
 Results suggest that when conventional cointegration tests are applied, a
 long-run relationship is found only in the cases of Brazil and Mexico for
 the Dow Jones (DJ) index, and in the case of Brazil for the Standard and
 Poor's 500 (SP500) index. In contrast, if the possibility of structural
 breaks is introduced, strong evidence is found in favour of such a
 relationship between the Argentine, Chilean and Venezuelan indices and the
 DJ index after the 1998 financial turmoil, and between the Brazilian and
 Mexican indices and the DJ index before such turbulence, while some
 marginal cointegration is detected between the Mexican and DJ indices from
 February 1998. Additionally, evidence is found of a cointegrating
 relationship between the Argentine, Chilean and Mexican indices and the
 SP500 index from August 1998, April 1999 and October 1999, respectively,
 and between the Brazilian and the SP500 indices before November 1997, as
 well as some marginal cointegration between the Mexican and SP500 indices
 before October 1999. The results suggest that the gains from international
 diversification for investors with long holding periods is limited. 
Journal: Applied Economics 
Pages: 1423-1434 
Issue: 12 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000100409 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100409 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1423-1434




Template-Type: ReDIF-Article 1.0
Author-Name: Gianluigi Giorgioni 
Author-X-Name-First: Gianluigi 
Author-X-Name-Last: Giorgioni 
Author-Name: Ken Holden 
Author-X-Name-First: Ken 
Author-X-Name-Last: Holden 
Title: Ricardian equivalence, expansionary fiscal contraction and the stock market: a VECM approach 
Abstract:
  The effect of government taxation on future consumption has been
 explained in three ways: the Keynesian approach, the Ricardian Equivalence
 proposition and the German view of Expansionary Fiscal Contraction (EFC).
 This paper reports empirical evidence on the validity of these
 explanations by examining the impact of a shock in government taxation
 upon private consumption, once the effect of the stock market is removed.
 A vector error-correction model is estimated for the USA, Japan, Germany,
 France, the UK, Italy and Canada for 1950-1997 and the impulse response
 functions of a shock in taxation and in expenditure are examined. The
 responses to an increase in government taxation appear to lend support to
 the EFC, while the responses to an increase in government expenditure upon
 consumption suggest that the reaction of private consumption is more in
 line with the traditional Keynesian approach. 
Journal: Applied Economics 
Pages: 1435-1443 
Issue: 12 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000125088 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125088 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1435-1443




Template-Type: ReDIF-Article 1.0
Author-Name: Avik Chakrabarti 
Author-X-Name-First: Avik 
Author-X-Name-Last: Chakrabarti 
Title: Import competition, employment and wage in US manufacturing: new evidence from multivariate panel cointegration analysis 
Abstract:
  This paper examines whether employment and wages in the US manufacturing
 sector exhibit any long-run relationship with import competition. The
 results based on a multivariate panel cointegration analysis of
 observations on 12 two-digit SIC manufacturing industries over the period
 from the third quarter of 1982 to the fourth quarter of 1992 indicate that
 US manufacturing employment does not bear a long-run relationship with
 import competition but manufacturing wage does. While the long-run
 correlation between import price and manufacturing wage is found to be
 sector sensitive panel estimation reveals a highly significant negative
 correlation between import price and manufacturing wage. 
Journal: Applied Economics 
Pages: 1445-1449 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000095389 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095389 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1445-1449




Template-Type: ReDIF-Article 1.0
Author-Name: Phil Goodwin 
Author-X-Name-First: Phil 
Author-X-Name-Last: Goodwin 
Author-Name: Robert Noland 
Author-X-Name-First: Robert 
Author-X-Name-Last: Noland 
Title: Building new roads really does create extra traffic: a response to Prakash et al. 
Abstract:
  A recent article by Prakash et al. (Applied Economics, 33, 1579-85, 2001)
 asserted that induced travel effects do not occur. This paper is
 criticized on several grounds. It disregards much of the recent work in
 this area that has empirically estimated induced travel relationships. The
 models specified are inappropriate for properly addressing this question,
 both in their use of road expenditure data (based on a misunderstanding of
 how this may relate to traffic growth) and specification of a model that
 does not account for other variables that generally have a large effect on
 traffic growth (notably population and income growth). The evidence in the
 literature is summarized and an analysis of UK road expenditure data shows
 that expenditure is not a good measure of actual road capacity that is
 built. 
Journal: Applied Economics 
Pages: 1451-1457 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000089872 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000089872 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1451-1457




Template-Type: ReDIF-Article 1.0
Author-Name: Norman Keith Womer 
Author-X-Name-First: Norman Keith 
Author-X-Name-Last: Womer 
Author-Name: Homee Shroff 
Author-X-Name-First: Homee 
Author-X-Name-Last: Shroff 
Author-Name: Thomas Gulledge 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Gulledge 
Author-Name: Kingsley Haynes 
Author-X-Name-First: Kingsley 
Author-X-Name-Last: Haynes 
Title: Measuring efficiency with a linear economic model 
Abstract:
  This paper modifies and interprets Data Envelopment Analysis (DEA) using
 a linear economic model. This approach is similar to the cone input/output
 and assurance region approaches to DEA, but it is implemented so that the
 multipliers are measured in the same units across all linear optimization
 problems. This approach allows one to interpret alternatives as profit
 maximizing organizations and the DEA multipliers as prices that are
 comparable across the alternatives. This is a useful extension of the
 assurance region concept, but more important, is that our approach
 enhances communication with decision-makers. The improved communication is
 illustrated by applying the model to the siting of a long-term health care
 facility. This application is interesting because the multiplier bounds
 make practical sense, and because the problem has dimensions that
 sometimes lead to interpretation problems with the traditional DEA model.
 For example, the site characteristics do not result from coordinated
 decisions, some sites exhibit zero values for some variables, and the
 problem has many variables compared with the number of potential sites.
 Problems with these dimensions have, at times, been deemed unsuitable for
 DEA, but they are handled without problem by the linear economic model. 
Journal: Applied Economics 
Pages: 1459-1467 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090636 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090636 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1459-1467




Template-Type: ReDIF-Article 1.0
Author-Name: Donald Haurin 
Author-X-Name-First: Donald 
Author-X-Name-Last: Haurin 
Author-Name: Kala Sridhar 
Author-X-Name-First: Kala 
Author-X-Name-Last: Sridhar 
Title: The impact of local unemployment rates on reservation wages and the duration of search for a job. 
Abstract:
  Evidence about the relationship of local unemployment rates and
 individuals' reservation wages and duration of search for a job if
 unemployed is sparse and mixed. This study uses US data from the Panel
 Study of Income Dynamics (PSID) to test whether relatively high local
 unemployment rates reduce the reservation wages of area residents or
 increase the duration of search. Labour search theory provides the
 grounding for the sample selection corrected simultaneous equations
 econometric model. In neither OLS nor 2SLS results is evidence found that
 local unemployment rates affect either reservation wages or the duration
 of search. These results suggest that policies targeted at alleviating
 unemployment should focus on increasing the demand for labour rather than
 hope that such policies will be beneficial if pursued in high-unemployment
 areas because of their effects on labour force characteristics. 
Journal: Applied Economics 
Pages: 1469-1476 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000081302 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081302 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1469-1476




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Eisenhauer 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Eisenhauer 
Author-Name: Luigi Ventura 
Author-X-Name-First: Luigi 
Author-X-Name-Last: Ventura 
Title: Survey measures of risk aversion and prudence 
Abstract:
  This paper utilizes a thought experiment conducted by the Bank of Italy
 to estimate absolute and relative risk aversion along with absolute and
 relative prudence for a broad cross-section of Italian households. Upper
 and lower bounds are calculated for each parameter, and comparisons are
 made across socio-demographic groups. Evidence is found of decreasing
 absolute risk aversion, decreasing absolute prudence, increasing relative
 risk aversion, and increasing relative prudence. 
Journal: Applied Economics 
Pages: 1477-1484 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000151287 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000151287 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1477-1484




Template-Type: ReDIF-Article 1.0
Author-Name: Pooran Lall 
Author-X-Name-First: Pooran 
Author-X-Name-Last: Lall 
Author-Name: David Norman 
Author-X-Name-First: David 
Author-X-Name-Last: Norman 
Author-Name: Allen Featherstone 
Author-X-Name-First: Allen 
Author-X-Name-Last: Featherstone 
Title: Determinants of US direct foreign investment in the Caribbean 
Abstract:
  This study evaluates two groups of variables (economic and
 structural/locational) associated with US short- and long-run direct
 foreign investment (DFI) in the Caribbean over the 1983-1994 period.
 Separate generalized least square models for the Caribbean and Latin
 America were estimated to determine whether differences existed between
 the two regions as to the variables associated with the levels of DFI.
 This helped provide insights as to the strategies that should be
 maintained or introduced to give the Caribbean a competitive edge in
 attracting the limited amounts of US DFI likely to be available for
 investment in the Western hemisphere. 
Journal: Applied Economics 
Pages: 1485-1496 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000100382 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100382 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1485-1496




Template-Type: ReDIF-Article 1.0
Author-Name: Yoichi Matsubayashi 
Author-X-Name-First: Yoichi 
Author-X-Name-Last: Matsubayashi 
Author-Name: Shigeyuki Hamori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Hamori 
Title: Some international evidence on the stability of aggregate import demand function 
Abstract:
  This paper empirically analyses the stability of the aggregate import
 demand function for G7 countries. The standard cointegration test and a
 test developed by Gregory and Hansen are performed. The results of
 standard cointegration tests suggest that there is no stable cointegrating
 relation between real import, real GDP and relative import price for all
 G7 countries. The cointegrating relation is empirically supported for
 France and Germany if structural change for cointegrating vector is
 explicitly taken into consideration. The cointegrating relation is
 empirically rejected for Canada, Italy, Japan, the UK and the USA. Thus,
 the stimulation of domestic business conditions will not necessarily link
 the quantity of imports for these five countries. 
Journal: Applied Economics 
Pages: 1497-1504 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000095965 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095965 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1497-1504




Template-Type: ReDIF-Article 1.0
Author-Name: George Anastassopoulos 
Author-X-Name-First: George 
Author-X-Name-Last: Anastassopoulos 
Title: MNE subsidiaries versus domestic enterprises: an analysis of their ownership and location-specific advantages 
Abstract:
  This paper compares the ownership advantages of multinational
 enterprises' (MNEs) subsidiaries and domestic enterprises (DMEs) in
 Greece. Previous studies have tested the hypothesis that
 ownership-specific advantages (Oa) are a major source of firm differences.
 This study analyses the processed food sector (SIC=20) - the leading
 industrial sector in Greece with the highest inward and outward
 internationalization degree - using a panel data set of 75 firms and 5
 years. The findings of a probabilistic regression analysis indicate that
 there are significant differences between the two groups of firms in the
 degree of possession of observed ownership advantages. MNE subsidiaries
 have higher market shares, use multiplant operations and have higher
 advertising and R&D to sales ratios compared to DMEs. DMEs use their
 well-established position (knowledge of domestic and regional market
 conditions, and size economies) in order to compete effectively with MNE
 subsidiaries. It is inferred that pursuit of domestic market development
 is an important motivation in such subsidiaries, in an attempt to build on
 (rather than substitute for) the strong and distinctive established
 product base of Greek food industry companies. By assimilating Greek food
 knowledge alongside their own the MNEs developed export-orientation into
 their subsidiaries in Greece, which eventually have played a notable role
 in the regional market (Balkans). 
Journal: Applied Economics 
Pages: 1505-1514 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000095956 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095956 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1505-1514




Template-Type: ReDIF-Article 1.0
Author-Name: Keuk-Soo Kim 
Author-X-Name-First: Keuk-Soo 
Author-X-Name-Last: Kim 
Author-Name: W. Douglas McMillin 
Author-X-Name-First: W. Douglas 
Author-X-Name-Last: McMillin 
Title: Estimating the effects of monetary policy shocks: does lag structure matter? 
Abstract:
  This paper examines the implications of lag structure for estimating the
 effects of monetary policy shocks in a VAR. A symmetric lag structure in
 which all variables have the same lag length and an asymmetric lag
 structure in which the lag length differs across variables but is the same
 for a particular variable in each equation of the model are examined. This
 is important in light of the fact that the true lag structure is generally
 not known. Four commonly used identification schemes are employed to
 identify monetary policy shocks. Monte Carlo simulations strongly indicate
 that the lag structure of a VAR model does matter when assessing the
 quantitative effects of monetary policy shocks. Given the inherent
 uncertainty about the true lag structure in practice, it is thus important
 that one compare the impulse response functions from both symmetric lag
 and asymmetric lag VARs in assessing the effects of monetary policy
 shocks. 
Journal: Applied Economics 
Pages: 1515-1526 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090663 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090663 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1515-1526




Template-Type: ReDIF-Article 1.0
Author-Name: B. Moazzami 
Author-X-Name-First: B. 
Author-X-Name-Last: Moazzami 
Author-Name: F. J. Anderson 
Author-X-Name-First: F. J. 
Author-X-Name-Last: Anderson 
Title: Long-term trend and short-run dynamics of the Canadian dollar: an error correction modelling approach 
Abstract:
  Using quarterly data for 1972-2000, the paper examines the long-term and
 short-term movements of the US-Canadian exchange rate. It is found that
 the standard purchasing power parity condition fails to explain movements
 of the Canadian dollar. The explanatory power of the model increases
 significantly when resource commodity prices are added to the equation.
 Short-term movements in the Canadian dollar are influenced by the interest
 rate differential between Canada and the USA. 
Journal: Applied Economics 
Pages: 1527-1530 
Issue: 13 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090627 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090627 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1527-1530




Template-Type: ReDIF-Article 1.0
Author-Name: Francis Green 
Author-X-Name-First: Francis 
Author-X-Name-Last: Green 
Author-Name: Alan Felstead 
Author-X-Name-First: Alan 
Author-X-Name-Last: Felstead 
Author-Name: Duncan Gallie 
Author-X-Name-First: Duncan 
Author-X-Name-Last: Gallie 
Title: Computers and the changing skill-intensity of jobs 
Abstract:
  This paper investigates the impact of computer usage at work and other
 job features on the changing skills required of workers. It compare skills
 utilization in Britain at three data points: 1986, 1992 and 1997, using
 proxies for the level of skills actually used in jobs. This study
 questions the validity of investigating the facts about, and the sources
 of, rising skills by using just educational attainment or occupational
 grouping data. This paper finds that: &#x2022; Job skills have increased,
 more quickly for women than for men; these increases are more extensive
 than those captured by changes in the occupational class structure.
 &#x2022; The spread of computer usage is very strongly associated with the
 process of upskilling, and accounts in part for narrowing of the gender
 skills gap; expanded use of quality circles is also linked to upskilling.
 &#x2022; Evidence for any direct role of trade in inducing skills
 increases is weak. &#x2022; Using the qualification held or occupation as
 a skills measure can lead to erroneous conclusions as to the origin of
 skills changes. 
Journal: Applied Economics 
Pages: 1561-1576 
Issue: 14 
Volume: 35 
Year: 2003 
X-DOI: 10.1081/0003684032000085986 
File-URL: http://www.tandfonline.com/doi/abs/10.1081/0003684032000085986 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1561-1576




Template-Type: ReDIF-Article 1.0
Author-Name: Niklas Rudholm 
Author-X-Name-First: Niklas 
Author-X-Name-Last: Rudholm 
Title: Competition and substitutability in the Swedish pharmaceuticals market 
Abstract:
  Substitution possibilities between brand name pharmaceuticals are
 analysed. The analysis is based on data from three different markets; the
 prescription drug market for beta-blocking agents, the 'over the counter'
 market for purgatives and the hospital market for two pharmaceutical
 treatments for gastric ulcers. The results indicate that there exist some
 substitution possibilities among the brand name drugs included in the
 study. 
Journal: Applied Economics 
Pages: 1609-1617 
Issue: 14 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000125042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1609-1617




Template-Type: ReDIF-Article 1.0
Author-Name: Roger Svensson 
Author-X-Name-First: Roger 
Author-X-Name-Last: Svensson 
Title: Visits to the client when competing for new consulting contracts: sourcing information or influencing the client? 
Abstract:
  Consulting firms (CFs) sell services on a project basis to many clients
 and must therefore continuously tender for new contracts. One frequently
 used strategy by CFs is to visit the clients in connection to the tenders.
 The reasons to the visits are: (1) to influence the client in his
 decision-making (e.g., marketing, bribing); and/or (2) to source
 information about the project so that a better proposal can be submitted.
 Using a unique database on individual export proposals submitted to
 emerging markets, which of these two reasons is the most important is
 examined empirically The estimations show that influencing the client
 dominates as explanation to the visits. Although it is not possible to
 determine whether this influence takes the form of bribing or marketing,
 all conditions necessary for bribes to occur are fulfilled. 
Journal: Applied Economics 
Pages: 1531-1541 
Issue: 14 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000125097 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125097 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1531-1541




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cook 
Author-Name: Neil Manning 
Author-X-Name-First: Neil 
Author-X-Name-Last: Manning 
Title: The power of asymmetric unit root tests under threshold and consistent-threshold estimation 
Abstract:
  The asymmetric unit root tests of Enders and Granger (Journal of Business
 and Economic Statistics, 16, 304-11, 1998) are examined using consistent
 threshold estimation and the original two-step procedure. In contrast to
 earlier studies, the ability of the tests to jointly reject the unit root
 and symmetry hypotheses is examined, thus permitting a fuller analysis of
 the tests' properties. Whilst the threshold autoregressive test is found
 to have little power in either its consistent or original forms, the
 consistent momentum-threshold autoregressive test is found to exhibit high
 power against a range of plausible alternatives when using newly derived
 critical values. 
Journal: Applied Economics 
Pages: 1543-1550 
Issue: 14 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000125105 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125105 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1543-1550




Template-Type: ReDIF-Article 1.0
Author-Name: Dennis Wilson 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Wilson 
Author-Name: Yung-Hsiang Ying 
Author-X-Name-First: Yung-Hsiang 
Author-X-Name-Last: Ying 
Title: Nationality preferences for labour in the international football industry 
Abstract:
  This paper tests consumer and co-worker nationalistic preferences by
 measuring the effect of team nationality composition on fan attendance and
 overall team quality using professional football teams in the world's five
 largest football leagues. Little evidence is found to support the
 hypothesis that fans or co-workers discriminate based upon the player's
 nationality. Thus, the under-representation of various nationalities can
 be concluded to originate from a club's ownership and/or management. These
 results are similar to the racial bias revealed by English club owners as
 found by Szymanski and Preston. 
Journal: Applied Economics 
Pages: 1551-1559 
Issue: 14 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/000368403200010048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368403200010048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1551-1559




Template-Type: ReDIF-Article 1.0
Author-Name: Ian Smith 
Author-X-Name-First: Ian 
Author-X-Name-Last: Smith 
Author-Name: John Sawkins 
Author-X-Name-First: John 
Author-X-Name-Last: Sawkins 
Title: The economics of regional variation in religious attendance 
Abstract:
  Developments in modelling the demand for religion have identified both
 religious human capital and religious market structure as fundamental
 determinants of levels of formal religious practice. In this paper, these
 theories are confronted with survey data drawn from 163 regions across 16
 countries. Although there are clearly political, historical and other
 country specific factors that affect levels of participation in organized
 religion, estimates from modified logit regression equations demonstrate
 the empirical significance at the regional level of variables suggested by
 recent innovations in the economics of religious behaviour. 
Journal: Applied Economics 
Pages: 1577-1588 
Issue: 14 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000129363 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000129363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1577-1588




Template-Type: ReDIF-Article 1.0
Author-Name: Ipek Ilkkaracan 
Author-X-Name-First: Ipek 
Author-X-Name-Last: Ilkkaracan 
Author-Name: Raziye Selim 
Author-X-Name-First: Raziye 
Author-X-Name-Last: Selim 
Title: The role of unemployment in wage determination: further evidence on the wage curve from Turkey 
Abstract:
  This paper presents an empirical estimation of the correlation between
 wages and regional unemployment rates in Turkey, more specifically it
 explores the role of regional unemployment rates in wage determination.
 The analysis builds upon a series of recent empirical studies on the
 wage-unemployment relationship, now commonly known as 'the wage curve', a
 downward sloping curve in wage-unemployment space. The existing studies
 are for most part in advanced market economies, while this paper presents
 one of the few attempts at a wage curve analysis within the context of a
 developing market economy. A cross-sectional estimation of micro level
 individual wage data for the Turkish labour market in 1994, suggest a
 statistically significant negative correlation between wages and regional
 unemployment rates. Separate regressions for men and women, however, show
 a wage curve to exist only in the male labour market. The study also
 presents the results on other variables of wage determination such as
 returns to schooling, returns to age, job tenure, gender, industrial and
 occupational affiliation of the worker, economic sector and union status. 
Journal: Applied Economics 
Pages: 1589-1598 
Issue: 14 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684022000040939 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000040939 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1589-1598




Template-Type: ReDIF-Article 1.0
Author-Name: William Dimovski 
Author-X-Name-First: William 
Author-X-Name-Last: Dimovski 
Author-Name: Robert Brooks 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brooks 
Title: Financial characteristics of Australian initial public offerings from 1994 to 1999 
Abstract:
  A variety of financial characteristics of Australian initial public
 offerings (IPOs) for the period 1994-1999 are explored. A number of
 previous Australian studies have investigated the initial day underpricing
 and longer term underperformance of IPOs and this study updates those
 papers. This paper partitions the IPO data into no liability/limited
 liability; share option/no share option; underwriter option/no underwriter
 option and dividend reinvestment/no dividend reinvestment characteristics
 to better understand the types of IPOs that list on the Australian Stock
 Exchange. The data supports the findings of previous studies in that IPOs
 are underpriced at the time of listing and underperform the market in the
 first year following their listing. 
Journal: Applied Economics 
Pages: 1599-1607 
Issue: 14 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000126771 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000126771 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1599-1607




Template-Type: ReDIF-Article 1.0
Author-Name: Werner Bonte 
Author-X-Name-First: Werner 
Author-X-Name-Last: Bonte 
Title: Does federally financed business R&D matter for US productivity growth? 
Abstract:
  This paper investigates the impact of federally financed business R&D on
 productivity of the US nonfarm business sector. Results of a cointegration
 analysis suggest that a long run relation between productivity and total
 (privately and federally financed) R&D capital stock exists. Moreover, the
 estimation results do not confirm the finding of previous empirical
 studies that the productivity effects of federally financed business R&D
 are lower compared with those of privately financed business R&D. 
Journal: Applied Economics 
Pages: 1619-1625 
Issue: 15 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000125079 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125079 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1619-1625




Template-Type: ReDIF-Article 1.0
Author-Name: Isabelle Armanville 
Author-X-Name-First: Isabelle 
Author-X-Name-Last: Armanville 
Author-Name: Peter Funk 
Author-X-Name-First: Peter 
Author-X-Name-Last: Funk 
Title: Induced innovation: an empirical test 
Abstract:
  A method is developed to empirically test the hypothesis of induced
 innovation as it has been specified and used in the theoretical
 literature. A strong and a weak version of the hypothesis is tested using
 sectorial data from the USA, Canada, Germany, France and the UK. The
 strong version tests for the exact dependency of the relation between the
 change in factor-productivities on the one hand and relative prices and
 actual factor-productivities on the other hand. The weak version only
 tests for the direction of this dependency. In all countries the weak
 hypothesis is accepted in all sectors except in 'electricity, gas, and
 water'. The strong hypothesis is accepted in about half of all sectors. It
 is rejected only in sectors, in which the degree to which progress is
 intentional is low. 
Journal: Applied Economics 
Pages: 1627-1647 
Issue: 15 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000125051 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125051 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1627-1647




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Attendance and pricing at sporting events: empirical results from Granger Causality Tests for the Melbourne Cup 
Abstract:
  This study applies Granger causality tests to examine the relationship
 between attendance, admission prices and real income at the Melbourne Cup,
 which is Australia's premier horseracing event and one of the world's
 leading handicap races. The motivation for the paper is that while market
 demand suggests that causation should run from admission price to
 attendance, it is equally plausible that sporting authorities could alter
 admission prices in response to a change in demand reflected in
 attendance. The main findings are that in the short-run there is
 unidirectional Granger causality running from income to attendance,
 attendance to admission price and income to admission price, while in the
 long run both admission price and income Granger cause attendance. 
Journal: Applied Economics 
Pages: 1649-1657 
Issue: 15 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000133223 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000133223 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1649-1657




Template-Type: ReDIF-Article 1.0
Author-Name: Orn Bodvarsson 
Author-X-Name-First: Orn 
Author-X-Name-Last: Bodvarsson 
Author-Name: William Luksetich 
Author-X-Name-First: William 
Author-X-Name-Last: Luksetich 
Author-Name: Sherry McDermott 
Author-X-Name-First: Sherry 
Author-X-Name-Last: McDermott 
Title: Why do diners tip: rule-of-thumb or valuation of service? 
Abstract:
  When diners decide how much to tip, is the decision based on social
 convention or on conscientious appraisal of server productivity? Previous
 researchers in economics and social psychology are generally inconclusive
 on this question. A common finding in the literature is that tip size and
 service quality are unrelated, a result usually obtained from OLS
 regressions. OLS is only appropriate if service quality is exogenous. It
 is argued that service quality is very likely endogenous in any regression
 of tip size; good quality encourages good tips, but server expectations of
 good tips encourage good quality. This simultaneity is accounted for by
 jointly estimating percentage tips and customer rankings of service
 quality on a sample of 247 diners in a Central Minnesota restaurant.
 Included are explanatory variables consistent with both the social
 psychology and economic views of tipping. In contrast to previous studies,
 it is found that service quality significantly affects tip size and when
 servers expect higher tips, customers rank service quality higher. Also it
 is found that patronage frequency and coupon redemption have no effect on
 percentage tips, but server gender influences quality significantly. It is
 concluded that the results are generally supportive of an economic
 hypothesis of tipping. 
Journal: Applied Economics 
Pages: 1659-1665 
Issue: 15 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000126799 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000126799 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1659-1665




Template-Type: ReDIF-Article 1.0
Author-Name: James Love 
Author-X-Name-First: James 
Author-X-Name-Last: Love 
Title: Technology sourcing versus technology exploitation: an analysis of US foreign direct investment flows 
Abstract:
  The traditional paradigm of foreign direct investment (FDI) suggests that
 FDI is undertaken principally to exploit some firm-specific advantage in a
 foreign country which provides a locational advantage to the investor.
 However, recent theoretical work suggests a model of FDI in which the
 motivation is not to exploit existing technological advantages in a
 foreign country, but to access such technology and transfer it from the
 host economy to the investing multinational corporation via spillover
 effects. This paper tests the technology sourcing versus technology
 exploiting hypotheses for a panel of sectoral FDI flows between the United
 States and major OECD nations over a 15 year period. The research makes
 use of Patel and Vega's (Research Policy, 28, 145-55, 1999) taxonomy of
 sectors which are likely a priori to exhibit technology sourcing and
 exploiting behaviour respectively. While there is evidence that FDI flows
 into the United States are attracted to R&D intensive sectors, very little
 support is found for the technology sourcing hypothesis either for inward
 or outward FDI flows. The results suggest that, in aggregate,
 firm-specific 'ownership' effects remain powerful determinants of FDI
 flows. 
Journal: Applied Economics 
Pages: 1667-1678 
Issue: 15 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000125060 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125060 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1667-1678




Template-Type: ReDIF-Article 1.0
Author-Name: George Philippidis 
Author-X-Name-First: George 
Author-X-Name-Last: Philippidis 
Author-Name: Lionel Hubbard 
Author-X-Name-First: Lionel 
Author-X-Name-Last: Hubbard 
Title: Modelling hierarchical consumer preferences: an application to global food markets 
Abstract:
Journal: Applied Economics 
Pages: 1679-1687 
Issue: 15 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000128454 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000128454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1679-1687




Template-Type: ReDIF-Article 1.0
Author-Name: Danilo Mercurio 
Author-X-Name-First: Danilo 
Author-X-Name-Last: Mercurio 
Author-Name: Costanza Torricelli 
Author-X-Name-First: Costanza 
Author-X-Name-Last: Torricelli 
Title: Estimation and arbitrage opportunities for exchange rate baskets 
Abstract:
  This paper analyses short-term portfolio investment opportunities in a
 capital market where a currency is defined as a currency basket. In line
 with the mean-variance hedging approach, a self-financed optimal
 investment strategy is determined which minimizes the expected quadratic
 cost function. The successful implementation of the speculative strategy
 requires a precise estimate of the basket weights, which are possibly
 non-constant over time. To this end, an adaptive non-parametric procedure
 is suggested which provides satisfactory results both on simulated and
 real data. The optimal investment strategy is applied to the case of the
 Thai Baht basket whereby the weights are computed by means of the adaptive
 estimator. A recursive estimator, a rolling estimator and the Kalman
 filter, are implemented and serve as benchmark models. Results are
 compared with the literature. The different estimators are evaluated with
 profit-based criteria and the performance of the adaptive estimator turns
 out to be the best one. 
Journal: Applied Economics 
Pages: 1689-1698 
Issue: 15 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000095938 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095938 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1689-1698




Template-Type: ReDIF-Article 1.0
Author-Name: Sean Pascoe 
Author-X-Name-First: Sean 
Author-X-Name-Last: Pascoe 
Author-Name: Parastoo Hassaszahed 
Author-X-Name-First: Parastoo 
Author-X-Name-Last: Hassaszahed 
Author-Name: Jesper Anderson 
Author-X-Name-First: Jesper 
Author-X-Name-Last: Anderson 
Author-Name: Knud Korsbrekke 
Author-X-Name-First: Knud 
Author-X-Name-Last: Korsbrekke 
Title: Economic versus physical input measures in the analysis of technical efficiency in fisheries 
Abstract:
  The measurement of technical efficiency requires the estimation of an
 appropriate production frontier. This is based on a set of inputs that are
 assumed to influence the level of output. Deviations from this frontier
 production function are separated into random variation and inefficiency.
 However, mis-specification of the production function through the use of
 inappropriate input measures may result in a bias in the measures of
 inefficiency. In fisheries, production is generally assumed to be a
 function of stock size, fishing time and the level of physical inputs
 employed. Defining the appropriate levels of physical inputs, however, is
 not straightforward, and several alternative measures are available. While
 economic measures of capital are more intuitively appealing, physical
 measures are generally readily available and hence less costly to collect.
 In this study, technical efficiency is measured for three fleet segments
 operating in the North Sea using three different gear types. The effects
 of using different measures of capital in the production frontier on the
 efficiency estimates are examined. 
Journal: Applied Economics 
Pages: 1699-1710 
Issue: 15 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000134574 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000134574 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1699-1710




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Jenkins 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Jenkins 
Author-Name: Anna Vignoles 
Author-X-Name-First: Anna 
Author-X-Name-Last: Vignoles 
Author-Name: Alison Wolf 
Author-X-Name-First: Alison 
Author-X-Name-Last: Wolf 
Author-Name: Fernando Galindo-Rueda 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Galindo-Rueda 
Title: The determinants and labour market effects of lifelong learning 
Abstract:
  Despite the policy importance of lifelong learning, there is very little
 hard evidence from the UK on (a) who undertakes lifelong learning and why,
 and (b) the economic benefits of lifelong learning. This paper uses a rich
 longitudinal panel data set to look at key factors that determine whether
 someone undertakes lifelong learning and then models the effect of the
 different qualifications acquired via lifelong learning on individuals'
 economic outcomes, namely wages and the likelihood of being employed.
 Those who left school with O-level qualifications or above were much more
 likely to undertake lifelong learning. Undertaking one episode of lifelong
 learning also increased the probability of undertaking more lifelong
 learning. We found little evidence of positive wage effects from lifelong
 learning. However, males who left school with only low-level
 qualifications do earn substantially more if they undertake a degree via
 lifelong learning. We also found important positive employment effects
 from lifelong learning. 
Journal: Applied Economics 
Pages: 1711-1721 
Issue: 16 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000155445 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000155445 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1711-1721




Template-Type: ReDIF-Article 1.0
Author-Name: James Payne 
Author-X-Name-First: James 
Author-X-Name-Last: Payne 
Title: Post stabilization estimates of money demand in Croatia: error correction model using the bounds testing approach 
Abstract:
  This paper estimates an error correction model of money demand for
 Croatia over the post-stabilization period based on the ARDL bounds
 testing procedure. While industrial production is statistically
 insignificant for both the M1 and M1A money demand specifications,
 interest rates, inflation, and the real effective exchange rate have a
 negative and statistically significant impact. The error correction money
 demand models appear structurally stable based on the cumulative sum and
 cumulative sum of square tests. 
Journal: Applied Economics 
Pages: 1723-1727 
Issue: 16 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000152871 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000152871 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1723-1727




Template-Type: ReDIF-Article 1.0
Author-Name: K. K. Gary Wong 
Author-X-Name-First: K. K. Gary 
Author-X-Name-Last: Wong 
Title: Towards a more general approach to testing the time additivity hypothesis 
Abstract:
  A new procedure is proposed for re-examining the assumption of additivity
 of preferences over time which, although untenable, is usually maintained
 in intertemporal analyses of consumption and labour supply. The method is
 an extension of a famous work by Browning. However, it is more general in
 permitting the estimation of intertemporal demand systems, which are
 explicit in an unobservable variable (price of utility), but may lack a
 closed form representation in terms of observable variables such as prices
 and total outlay. It also makes extensive use of duality theory to solve
 the endogeneity problem encountered in Browning's study. Applying this
 method with an appropriate estimator to the Australian aggregate data, it
 is found that the time additivity hypothesis is decisively rejected, which
 is consistent with Browning's conclusion. 
Journal: Applied Economics 
Pages: 1729-1738 
Issue: 16 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000090654 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090654 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1729-1738




Template-Type: ReDIF-Article 1.0
Author-Name: Kang Park 
Author-X-Name-First: Kang 
Author-X-Name-Last: Park 
Title: Patterns and strategies of Foreign Direct Investment: the case of Japanese firms 
Abstract:
  This paper is to study globalization motives and strategies of Japanese
 manufacturing industries by analyzing the causes and patterns of foreign
 direct investment (FDI) of Japanese manufacturing firms. We use regression
 analysis to determine internally driving-out factors and
 externally-inducing factors. Japanese FDI strategy has gone through three
 different stages; from natural resource-seeking investment in the 1950s
 and 1960s to market-expansion investment in the 1970s and 1980s and to a
 combination of cost-reducing (low-cost labor-seeking) investment and
 market-penetrating investment in the 1990s. Our findings show that
 Japanese FDI in Asia and other developing countries tends to be in
 labor-intensive sectors where Japanese firms are losing their comparative
 advantages at home. The main motive for FDI into these regions is low-cost
 resource seeking. On the other hand, Japanese FDI in the US and Europe
 tends to be knowledge-intensive sectors where Japanese firms attempt to
 internalize transaction and information costs by globalizing its
 production. The main motive for FDI into these regions is market-seeking. 
Journal: Applied Economics 
Pages: 1739-1746 
Issue: 16 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000155472 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000155472 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1739-1746




Template-Type: ReDIF-Article 1.0
Author-Name: Charlie Weir 
Author-X-Name-First: Charlie 
Author-X-Name-Last: Weir 
Author-Name: David Laing 
Author-X-Name-First: David 
Author-X-Name-Last: Laing 
Title: Ownership structure, board composition and the market for corporate control in the UK: an empirical analysis 
Abstract:
  This paper analyses the board composition and ownership structures of a
 sample of companies that have been acquired and those of a matching
 control sample that have not. We find significant governance differences
 between acquired firms and the control sample. Firms with the following
 characteristics were more likely to be acquired: they had the same person
 acting as CEO and chair, a higher proportion of non-executive directors,
 larger institutional shareholdings and higher director shareholdings. An
 analysis of small firms also found evidence of higher CEO shareholdings.
 We also find that treating all take-overs as a single group leads to a
 model mis-specification which does not identify the incentive effects of
 board and CEO shareholdings present in non-hostile acquisitions. These
 results are consistent with two agency-derived hypotheses, financial
 incentives and effective monitoring. We also find that targets exhibit
 lower growth potential but do not have worse accounting performance. 
Journal: Applied Economics 
Pages: 1747-1759 
Issue: 16 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000155454 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000155454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1747-1759




Template-Type: ReDIF-Article 1.0
Author-Name: Atul Dar 
Author-X-Name-First: Atul 
Author-X-Name-Last: Dar 
Author-Name: Sal Amirkhalkhali 
Author-X-Name-First: Sal 
Author-X-Name-Last: Amirkhalkhali 
Title: On the impact of trade openness on growth: further evidence from OECD countries 
Abstract:
  This study attempts to examine empirically the implications of the degree
 of openness for total and individual factor productivity growth in a group
 of 19 OECD countries over the last three decades. The study combines both
 time series and cross-sectional data. The model employed is a
 generalization of the commonly used, growth-accounting model based on the
 concept of an aggregate production function in which the rate of economic
 growth is a function of capital and labour accumulation and total factor
 productivity. It is explicitly assumed that total factor productivity
 depends, in turn, upon the rate of export expansion. The model is then
 estimated using the random coefficients approach. While results generally
 indicate that the relative importance of trade openness on economic growth
 varies significantly across countries, they also indicate that the role of
 capital and labour accumulation in fostering economic growth varies with
 the degree of openness, cross-sectionally as well as across time. 
Journal: Applied Economics 
Pages: 1761-1766 
Issue: 16 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000129020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000129020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1761-1766




Template-Type: ReDIF-Article 1.0
Author-Name: Joel Deichmann 
Author-X-Name-First: Joel 
Author-X-Name-Last: Deichmann 
Author-Name: Socrates Karidis 
Author-X-Name-First: Socrates 
Author-X-Name-Last: Karidis 
Author-Name: Selin Sayek 
Author-X-Name-First: Selin 
Author-X-Name-Last: Sayek 
Title: Foreign direct investment in Turkey: regional determinants 
Abstract:
  The uneven regional distribution of foreign direct investment (FDI) in
 Turkey poses an interesting question from the perspective of multinational
 firms (MNFs) and policy-makers alike. This paper focuses on the factors
 governing the location decisions of MNFs within Turkey with specific
 reference to policy implications. Using a conditional logit model, it is
 found that agglomeration, depth of local financial markets, human capital,
 and coastal access dominate location decisions for the aggregate sample of
 foreign investors in Turkey. This study reveals no evidence that public
 investment is successful in attracting MNFs to particular regions. Also
 importantly, the location determinants vary dramatically by broad
 industrial category, investment composition, and origin-country
 characteristics, including income category and region. 
Journal: Applied Economics 
Pages: 1767-1778 
Issue: 16 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000126780 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000126780 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1767-1778




Template-Type: ReDIF-Article 1.0
Author-Name: Fragkiskos Filippaios 
Author-X-Name-First: Fragkiskos 
Author-X-Name-Last: Filippaios 
Author-Name: Marina Papanastassiou 
Author-X-Name-First: Marina 
Author-X-Name-Last: Papanastassiou 
Author-Name: Robert Pearce 
Author-X-Name-First: Robert 
Author-X-Name-Last: Pearce 
Title: The evolution of US outward foreign direct investment in the pacific rim: a cross-time and country analysis 
Abstract:
  The location determinants of US FDI in the Pacific region of the OECD,
 i.e. Australia, New Zealand, Japan, and Korea, are analysed for 1982-1997.
 The data set allowed two time periods i.e. the 1980s and the 1990s, and
 two different subgroups, i.e. Australia and New Zealand, and Japan and
 Korea to be distinguished. Statistical evidence indicates a heterogeneous
 response of US FDI towards different countries and for different time
 periods. Factors such as market size, income level and qualified and
 productive labour exert a significant impact on both the timing and the
 locational choice of US investors in the region. 
Journal: Applied Economics 
Pages: 1779-1787 
Issue: 16 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000154220 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000154220 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1779-1787




Template-Type: ReDIF-Article 1.0
Author-Name: Allan Layton 
Author-X-Name-First: Allan 
Author-X-Name-Last: Layton 
Author-Name: Anirvan Banerji 
Author-X-Name-First: Anirvan 
Author-X-Name-Last: Banerji 
Title: What is a recession?: A reprise 
Abstract:
  This paper draws its title from a paper written over 35 years ago by
 Geoffrey H. Moore (1967). Why the need for a reprise? First, there would
 appear currently to be somewhat diverging views as to what properly
 constitutes a recession. Second, largely as a result of this, in many
 countries other than the US, there does not exist a single, widely
 accepted business cycle chronology for the country in question. This paper
 will argue that, in addition to output, there are other important aspects
 to aggregate economic activity that need to be taken into account in
 determining the business cycle, viz., income, sales and employment. As
 such, our perspective would seem to be at odds with the apparent position
 taken by some other recent commentators on this issue who argue that GDP
 is all that is needed to represent a country's business cycle. We will
 also argue against using the currently popular 'two negative quarterly
 growth rate' rule in dating the onset of a recession. 
Journal: Applied Economics 
Pages: 1789-1797 
Issue: 16 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000152853 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000152853 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1789-1797




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Title: Money and prices: evidence from the G7 countries 
Abstract:
  This paper examines the exogeneity of money and prices within a money
 demand vector error-correction model. The exogeneity of the variables is
 central to several 'buffer stock' models. However, the paper makes two
 modifications to the traditional approach. The first is to explicitly
 acknowledge the importance of the supply of money function by including
 the function alongside its demand counterpart. The second is to estimate
 the behaviour of the nominal sector and real sector simultaneously.
 Overall, the results from the G7 countries suggest that the concerns
 raised by 'buffer stock' models are relevant. 
Journal: Applied Economics 
Pages: 1799-1809 
Issue: 17 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840310001628053 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628053 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1799-1809




Template-Type: ReDIF-Article 1.0
Author-Name: Djeto Assane 
Author-X-Name-First: Djeto 
Author-X-Name-Last: Assane 
Author-Name: Abbas Grammy 
Author-X-Name-First: Abbas 
Author-X-Name-Last: Grammy 
Title: Institutional framework and economic development: international evidence 
Abstract:
  This paper examines the effect of 'quality' of the institutional
 framework on economic development. Our empirical results support the
 hypothesis that 'good' institutions improve efficiency and accelerate
 growth. The positive effect of institutional 'quality' is more pronounced
 with mutually reinforcing support of economic freedom. Our results also
 indicate that 'good' institutions help developing countries grow faster to
 achieve conditional convergence. We infer from the results that economic
 development requires not only physical and human capital formation, but
 also freedom to choose and institutional support. 
Journal: Applied Economics 
Pages: 1811-1817 
Issue: 17 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000152862 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000152862 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1811-1817




Template-Type: ReDIF-Article 1.0
Author-Name: Arusha Cooray 
Author-X-Name-First: Arusha 
Author-X-Name-Last: Cooray 
Title: A test of the expectations hypothesis of the term structure of interest rates for Sri Lanka 
Abstract:
  This paper tests the expectations hypothesis of the term structure of
 interest rates for Sri Lanka. The data support the hypothesis that forward
 and spot rates are cointegrated suggesting a stochastic trend in the
 structure of interest rates. However, the hypothesis that forward rates
 are unbiased predictors of future spot rates is rejected. 
Journal: Applied Economics 
Pages: 1819-1827 
Issue: 17 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000148524 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000148524 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1819-1827




Template-Type: ReDIF-Article 1.0
Author-Name: J. C. Matallin 
Author-X-Name-First: J. C. 
Author-X-Name-Last: Matallin 
Author-Name: A. Fernandez-Izquierdo 
Author-X-Name-First: A. 
Author-X-Name-Last: Fernandez-Izquierdo 
Title: Passive timing effect in portfolio management 
Abstract:
  The primary objective of the present study is to analyse the extent of
 the passive timing effect in portfolio management. This effect is produced
 when a portfolio which is not managed actively shows signs of instability
 in its level of systematic risk. By contrast, market timing involves
 active management of the portfolio and therefore changes to the level of
 systematic risk in order to anticipate market movements in an appropriate
 manner. This study proposes a dynamic beta model which incorporates the
 effect of passive timing attributable to the accumulated evolution of
 weightings for the assets that make up the portfolio. The results
 demonstrate the importance of this effect when applying performance and
 market timing measures in order to evaluate portfolio results, such as
 those of mutual funds. 
Journal: Applied Economics 
Pages: 1829-1837 
Issue: 17 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000150404 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000150404 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1829-1837




Template-Type: ReDIF-Article 1.0
Author-Name: M. M. Salinas-Jimenez 
Author-X-Name-First: M. M. 
Author-X-Name-Last: Salinas-Jimenez 
Title: Technological change, efficiency gains and capital accumulation in labour productivity growth and convergence: an application to the Spanish regions 
Abstract:
  The main objective of this article is to analyse labour productivity
 growth and convergence in the Spanish regions between 1965 and 1995,
 decomposing total factor productivity gains into technological progress
 and efficiency change by means of Malmquist productivity indices. On the
 basis of this decomposition, labour productivity growth is broken down
 into components attributable to technological change (shifts in the
 frontier), efficiency gains (movements toward the frontier) and capital
 accumulation (movements along the frontier). The approach followed in this
 study is based on work initiated by Fare et al., where a link between the
 economic growth and convergence literature and the production frontier
 approach was established. Furthermore, in the spirit of Quah's approach,
 the evolution of the whole distribution is considered. Thus, the analysis
 of the dynamics of the entire distribution of labour productivity and the
 factors behind it - technological progress, efficiency gains and capital
 accumulation - combine both approaches, yielding new insights into the
 process of productivity growth and convergence experienced by the Spanish
 regions over the last 30 years. 
Journal: Applied Economics 
Pages: 1839-1851 
Issue: 17 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/000368403100016289800 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368403100016289800 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1839-1851




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Bishop 
Author-X-Name-First: Paul 
Author-X-Name-Last: Bishop 
Author-Name: Steven Brand 
Author-X-Name-First: Steven 
Author-X-Name-Last: Brand 
Title: The efficiency of museums: a stochastic frontier production function approach 
Abstract:
  This article examines the technical efficiency of museums based upon data
 derived from a questionnaire survey of South West England. A stochastic
 frontier production function is estimated with output measured in terms of
 visitor numbers. The Cobb-Douglas function is shown to be the best
 representation of the production function. Average levels of efficiency
 are estimated to be fairly low at 45.5% with wide variations across
 museums. The results indicate that high levels of public funding and
 voluntary activity have a significantly negative impact on technical
 efficiency. It is argued that further research is needed to develop more
 sophisticated measures of the output of cultural industries and understand
 the economic importance of volunteers. 
Journal: Applied Economics 
Pages: 1853-1858 
Issue: 17 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000158064 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000158064 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1853-1858




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Papatheodorou 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Papatheodorou 
Title: Exploring the determination of student performance in university modules and streams 
Abstract:
  The role of various characteristics in explaining marks achieved by
 university students in specific modules and streams is assessed. Building
 on a hedonic analytical framework, this performance-related study aims at
 being useful for lecturers in their design of learning and teaching
 policy. Following the presentation of variables and some descriptive
 statistics, the econometric exercise indicates that the statistically
 significant factors are those primarily related to semester student
 performance, i.e. an overall good (mediocre) student performs well (bad)
 in the modules under consideration. Despite its superficial triviality,
 this result might have important implications for university
 administrators and their budgeting strategy. 
Journal: Applied Economics 
Pages: 1859-1864 
Issue: 17 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000154239 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000154239 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1859-1864




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Casu 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Casu 
Author-Name: Philip Molyneux 
Author-X-Name-First: Philip 
Author-X-Name-Last: Molyneux 
Title: A comparative study of efficiency in European banking 
Abstract:
  This paper investigates whether there has been an improvement in and
 convergence of productive efficiency across European banking markets since
 the creation of the Single Internal Market. Using efficiency measures
 derived from DEA estimation, the determinants of European bank efficiency
 are evaluated using the Tobit regression model approach. The established
 literature on modelling the determinants of bank efficiency is then
 extended by recognizing the problem of the inherent dependency of DEA
 efficiency scores when used in regression analysis. To overcome the
 dependency problem, a bootstrapping technique is applied. Overall, the
 results suggest that since the EU's Single Market Programme there has been
 a small improvement in bank efficiency levels, although there is little
 evidence to suggest that these have converged. The results also suggest
 that inference on the determinants of bank efficiency drawn from
 non-bootstrapped regression analysis may be biased and misleading. 
Journal: Applied Economics 
Pages: 1865-1876 
Issue: 17 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000158109 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000158109 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1865-1876




Template-Type: ReDIF-Article 1.0
Author-Name: Bing-Huei Lin 
Author-X-Name-First: Bing-Huei 
Author-X-Name-Last: Lin 
Author-Name: Jerry Wang 
Author-X-Name-First: Jerry 
Author-X-Name-Last: Wang 
Title: Systematic skewness in asset pricing: an empirical examination of the Taiwan stock market 
Abstract:
  This paper is an empirical study of asset pricing with the systematic
 skewness in the pricing model. We adopt the Fama-French three-factor
 model, which incorporates the firm-size and book-to-market ratio in asset
 pricing as the base case, and then includes the skewness factor used by
 Harvey and Siddique in the pricing model. The evidence shows that
 systematic skewness is significant and might be important in asset pricing
 when portfolios are formed by industry, firm-size, book-to-market, or
 momentum strategies. When portfolios are constructed by momentum or
 coskewness strategies, lower momentum, or lower coskewness portfolios
 exhibit higher skewness and higher kurtosis. When portfolios are grouped
 by excess returns, it is seen that the average excess return is positively
 correlated with size and coskewness. Thus the systematic skewness is
 closely related to firm size. And the relationship between systematic
 skewness and excess return is obscured by the reverse firm-size effect. 
Journal: Applied Economics 
Pages: 1877-1887 
Issue: 17 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840310001628044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1877-1887




Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Serra 
Author-X-Name-First: Teresa 
Author-X-Name-Last: Serra 
Author-Name: Barry Goodwin 
Author-X-Name-First: Barry 
Author-X-Name-Last: Goodwin 
Title: Price transmission and asymmetric adjustment in the Spanish dairy sector 
Abstract:
  Asymmetric threshold vector error correction models are applied to
 monthly price data to analyse price relationships and patterns of
 transmission among farm and retail markets for a variety of dairy products
 in Spain. The results suggest that asymmetries affect a conspicuous part
 of the raw milk processed in Spain. Implications for the organizational
 structure of Spanish dairy markets are offered. 
Journal: Applied Economics 
Pages: 1889-1899 
Issue: 18 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840310001628774 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628774 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1889-1899




Template-Type: ReDIF-Article 1.0
Author-Name: Oner Guncavdi-super-&#x2d9; 
Author-X-Name-First: Oner 
Author-X-Name-Last: Guncavdi-super-&#x2d9; 
Author-Name: Andrew McKay 
Author-X-Name-First: Andrew 
Author-X-Name-Last: McKay 
Title: Macroeconomic adjustment and private manufacturing investment in Turkey: a time-series analysis 
Abstract:
  Despite the drastic switch to market-based policies and outward
 orientation in Turkey during the 1980s, private investment in
 manufacturing industry has still not revived after seventeen years of
 structural adjustment. This paper examines the main determinants of
 private investment in the manufacturing sector and the impacts of
 structural adjustment (particularly financial liberalisation as an
 integral part of the reform) on it. The results show that liberalisation
 policies in financial markets appear to have positive effects by reducing
 the stringency of quantity constraints on investment while the high
 interest rates resulting from financial liberalisation had no significant
 impact on investment. Macroeconomic instability, proxied by the
 variability of the inflation rate, seems to have discouraged investment in
 manufacturing. 
Journal: Applied Economics 
Pages: 1901-1909 
Issue: 18 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840310001628099 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628099 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1901-1909




Template-Type: ReDIF-Article 1.0
Author-Name: Wolter Hassink 
Author-X-Name-First: Wolter 
Author-X-Name-Last: Hassink 
Author-Name: Lourens Broersma 
Author-X-Name-First: Lourens 
Author-X-Name-Last: Broersma 
Title: Quits, layoffs, and job destruction 
Abstract:
  We examine the quit-layoff distinction and its implications for job
 destruction from the employer's perspective. Using a set of panel data of
 Dutch firms, we get the following results. First, in addition to layoffs,
 quits contribute to the speed of downward adjustment of labour. Second,
 about 22% of the jobs of workers who resigned are destroyed. It is not
 clear-cut whether these resignations are initiated by employers or
 employees. 
Journal: Applied Economics 
Pages: 1911-1914 
Issue: 18 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000163329 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000163329 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1911-1914




Template-Type: ReDIF-Article 1.0
Author-Name: Bengt Kristrom 
Author-X-Name-First: Bengt 
Author-X-Name-Last: Kristrom 
Author-Name: Tommy Lundgren 
Author-X-Name-First: Tommy 
Author-X-Name-Last: Lundgren 
Title: Abatement investments and green goodwill 
Abstract:
  This paper develops and estimates a dynamic model that links profits to
 green goodwill. Assuming that abatement investments generate green
 goodwill, and using data from the Swedish pulp industry, we are able to
 test the effects of green goodwill on firm level output price and profits.
 The results suggests that Swedish pulp plant output prices and profits may
 be positively related to changes in green goodwill. Furthermore, no
 evidence is found to support the existence of adjustment costs due to
 abatement investments. 
Journal: Applied Economics 
Pages: 1915-1921 
Issue: 18 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840310001628026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1915-1921




Template-Type: ReDIF-Article 1.0
Author-Name: S. Sosvilla-Rivero 
Author-X-Name-First: S. 
Author-X-Name-Last: Sosvilla-Rivero 
Author-Name: R. Maroto-Illera 
Author-X-Name-First: R. 
Author-X-Name-Last: Maroto-Illera 
Title: Regimen changes and duration in the European Monetary System 
Abstract:
  This article examines the regime changes in the Exchange Rate Mechanism
 (ERM) of the European Monetary System (EMS), applying the duration model
 approach to weekly data of eight currencies participating in the ERM,
 covering the complete EMS history. When using the non-parametric
 (univariate) analysis, it was found that for those regimens with long
 durations, the ERM would have been relatively stable, while for the (more
 common) regimes associated with short durations would have been more
 unstable. The probability of maintaining a certain regime is estimated to
 be 0.685. When applying a parametric (multivariate) analysis to
 investigate the role of other variables in the probability of a regime
 change, it is concluded that the interest rate differential with Germany
 and the magnitude of the realignment would have negatively affected the
 duration of a given regime, while credibility would have positively
 influenced such duration. Finally, when distinguishing between groups of
 currencies, it is observed that those in the core are more stable than
 those in the periphery, obtaining evidence against equality of survival
 functions among these groups of currencies. 
Journal: Applied Economics 
Pages: 1923-1933 
Issue: 18 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0036840310001628783 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0036840310001628783 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1923-1933




Template-Type: ReDIF-Article 1.0
Author-Name: John Dunham 
Author-X-Name-First: John 
Author-X-Name-Last: Dunham 
Author-Name: Michael Marlow 
Author-X-Name-First: Michael 
Author-X-Name-Last: Marlow 
Title: The economic incidence of smoking laws 
Abstract:
  Although laws restricting smoking in restaurants are becoming
 commonplace, most research has focused on either the health benefits that
 laws may provide customers and workers or whether laws harm owners. But
 while smoking laws may directly alter profits, owners may alter prices,
 output, and other business attributes in ways that affect the welfare of
 customers and workers. This study examines whether restaurant and bar
 owners alter prices, entertainment, hours of operation and other business
 attributes in response to local smoking laws. Substantial support is found
 for these attribute changes in the Wisconsin hospitality industry. One
 implication is that an overall assessment of the desirability of smoking
 laws should consider economic effects imposed on owners, customers and
 workers, as well as health benefits that follow laws. 
Journal: Applied Economics 
Pages: 1935-1942 
Issue: 18 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/00036840310001628765 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628765 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1935-1942




Template-Type: ReDIF-Article 1.0
Author-Name: Seamus McGuinness 
Author-X-Name-First: Seamus 
Author-X-Name-Last: McGuinness 
Title: University quality and labour market outcomes 
Abstract:
  This paper uses proxies for university quality derived from the Research
 Assessment Exercise and the Teaching Quality Assurance Agency to assess
 the impact of university quality on the labour market outcomes of a cohort
 of UK graduates. The impacts on job quality and earnings were mainly
 limited to graduates in particular disciplines or those obtaining 'poor'
 degrees from 'good' universities. The results suggest that, after
 controlling for pre-entry qualifications, labour market outcomes for most
 graduates depended more on the subject studied and degree classification
 awarded than on the university attended. 
Journal: Applied Economics 
Pages: 1943-1955 
Issue: 18 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000158442 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000158442 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1943-1955




Template-Type: ReDIF-Article 1.0
Author-Name: Hui Feng 
Author-X-Name-First: Hui 
Author-X-Name-Last: Feng 
Author-Name: Jia Liu 
Author-X-Name-First: Jia 
Author-X-Name-Last: Liu 
Title: A SETAR model for Canadian GDP: non-linearities and forecast comparisons 
Abstract:
  This paper investigates the forecasting performance of the non-linear
 time series SETAR model by using Canadian GDP data from 1965 to 2000.
 Besides the within-sample fit, the forecasting performance of a standard
 linear ARIMA model for the same sample has also been generated for
 comparative purposes. Two forecasting methods, one-step-ahead and
 multi-step-ahead forecasting, are compared for each type of model. 
Journal: Applied Economics 
Pages: 1957-1964 
Issue: 18 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000160674 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000160674 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1957-1964




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Bishop 
Author-X-Name-First: Paul 
Author-X-Name-Last: Bishop 
Title: Collaboration and firm size: some evidence from the UK defence industry 
Abstract:
  This paper presents evidence on the relationship between collaboration
 and firm size derived from an empirical study of the UK defence industry.
 The results indicate that size has a positive impact on collaboration and,
 in particular, with the propensity to collaborate with overseas firms.
 However, size has no impact on the propensity to collaborate with UK
 partners. This lends support to theories which emphasize the resource
 constraints facing small firms in developing international collaboration.
 There is a need for a policy debate concerning mechanisms to promote
 collaboration to assist small firms to realise the benefits of
 international collaboration. 
Journal: Applied Economics 
Pages: 1965-1969 
Issue: 18 
Volume: 35 
Year: 2003 
X-DOI: 10.1080/0003684032000158073 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000158073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1965-1969




Template-Type: ReDIF-Article 1.0
Author-Name: Munisamy Gopinath 
Author-X-Name-First: Munisamy 
Author-X-Name-Last: Gopinath 
Author-Name: Daniel Pick 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Pick 
Author-Name: Yonghai Li 
Author-X-Name-First: Yonghai 
Author-X-Name-Last: Li 
Title: An empirical analysis of productivity growth and industrial concentration in us manufacturing 
Abstract:
  This manuscript focuses on the productivity-industrial concentration
 relationship in the US manufacturing industries, while accounting for
 external and internal sources of knowledge. It is found that there is a
 critical level of industrial concentration beyond which its relationship
 with productivity growth becomes negative. Results suggest that static
 welfare losses of increasing concentration in manufacturing industries can
 be offset by welfare gains from productivity growth. 
Journal: Applied Economics 
Pages: 1-7 
Issue: 1 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000177143 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177143 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:1-7




Template-Type: ReDIF-Article 1.0
Author-Name: William Dare 
Author-X-Name-First: William 
Author-X-Name-Last: Dare 
Author-Name: A. Steven Holland 
Author-X-Name-First: A. Steven 
Author-X-Name-Last: Holland 
Title: Efficiency in the NFL betting market: modifying and consolidating research methods 
Abstract:
  Modifying and consolidating previous research methods to generate more
 reliable estimates, some fairly weak evidence is found of inefficiency in
 the NFL betting market resulting from a bias favouring home underdog
 (against away favourite) teams. In contrast to previous research, no
 evidence is found that 'momentum strategies' generate significant returns
 in this market. 
Journal: Applied Economics 
Pages: 9-15 
Issue: 1 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000177152 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177152 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:9-15




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Ault 
Author-X-Name-First: Richard 
Author-X-Name-Last: Ault 
Author-Name: Robert Ekelund 
Author-X-Name-First: Robert 
Author-X-Name-Last: Ekelund 
Author-Name: John Jackson 
Author-X-Name-First: John 
Author-X-Name-Last: Jackson 
Author-Name: Richard Saba 
Author-X-Name-First: Richard 
Author-X-Name-Last: Saba 
Title: Smokeless tobacco, smoking cessation and harm reduction: an economic analysis 
Abstract:
  Good estimates place 'hard core' smoking rates in the United States at
 approximately 25%, with little change over the decade of the 1990s. This
 paper examines the possibilities of 'harm reduction' with the use of
 smokeless tobacco. Specifically, using an econometric model we seek to
 determine whether an increase in the use of smokeless tobacco would lead
 to reduced smoking rates in the United States. Applying our model to the
 NHANES III (National Health and Nutrition Examination Survey) we find that
 the use of smokeless tobacco by an average U.S. male smoker would increase
 the average probability of smoke cessation by over 10%. Approximately 3
 million additional 'quits' would result for 26 million smokers. Our study
 permits an examination of cessation by age groups and we find that males
 who use smokeless tobacco between 16 and 65 have a 10-14% probability of
 quitting but that the probability falls beyond age 66. Important
 implications for life extension and health costs would attend these
 results with, under conservative assumptions, life years saved
 approximating 2.16 million and health care cost-savings of about $3
 billion per year. 
Journal: Applied Economics 
Pages: 17-29 
Issue: 1 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000177161 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177161 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:17-29




Template-Type: ReDIF-Article 1.0
Author-Name: Runar Brannlund 
Author-X-Name-First: Runar 
Author-X-Name-Last: Brannlund 
Author-Name: Per-Olov Marklund 
Author-X-Name-First: Per-Olov 
Author-X-Name-Last: Marklund 
Author-Name: Magnus Sjostrom 
Author-X-Name-First: Magnus 
Author-X-Name-Last: Sjostrom 
Title: Evaluating market efficiency without price data: the Swedish market for wood fuel 
Abstract:
  The overall objective of this paper is to analyse the price development
 and price formation for wood fuel used by the Swedish district heating
 sector. According to Lonner et al., there is a significant potential for
 increasing the use of wood fuel in Sweden, at a fairly moderate cost. The
 basic question raised in this paper is then why this potential is not
 realized. Specifically, a methodology is proposed for testing whether the
 reason is that market imperfections are present. As a first step the shape
 of the technology in the Swedish district heating sector is estimated for
 the period 1989 to 1996. In the second step the estimated technology and
 the assumption of cost-minimizing firms are combined to calculate shadow
 prices, i.e. marginal valuation of wood fuel in this sector. If the
 average shadow price significantly deviates from the average observed
 price one may conclude that this market is functioning inefficiently due
 to imperfections. According to constructed bootstrap confidence intervals
 this difference is significant only for three out of eight years, implying
 that the quantities of wood fuel traded are too small. For the other years
 the difference is not significant, implying that one cannot, on
 statistical grounds, reject the efficient market hypothesis for all years. 
Journal: Applied Economics 
Pages: 31-39 
Issue: 1 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000177170 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177170 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:31-39




Template-Type: ReDIF-Article 1.0
Author-Name: S. I. Spyrou 
Author-X-Name-First: S. I. 
Author-X-Name-Last: Spyrou 
Title: Are stocks a good hedge against inflation? evidence from emerging markets 
Abstract:
  Theory suggests that equities are a good hedge against inflation.
 However, most of the empirical evidence for industrialized economies
 suggests that the relationship between stock returns and inflation is
 negative. One explanation is the negative correlation between inflation
 and real output growth. This paper examines the relationship between
 inflation and stock returns for ten important Emerging Stock Market (ESM)
 markets, namely, Chile, Mexico, Brazil, Argentina, Thailand, S. Korea,
 Malaysia, Hong Kong, Philippines and Turkey, during the 1990s. To
 anticipate the results, the relationship between stock returns and
 inflation, for the whole sample period, is positive and statistically
 significant for three of the sample ESMs, while it is positive (but
 statistically insignificant) for a further three. Only for one ESM is the
 relationship negative and statistically significant. This result may be
 due to the role of money and the positive relationship between consumer
 prices and output. 
Journal: Applied Economics 
Pages: 41-48 
Issue: 1 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000177189 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177189 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:41-48




Template-Type: ReDIF-Article 1.0
Author-Name: Don Bredin 
Author-X-Name-First: Don 
Author-X-Name-Last: Bredin 
Author-Name: Gerard O'Reilly 
Author-X-Name-First: Gerard 
Author-X-Name-Last: O'Reilly 
Title: An analysis of the transmission mechanism of monetary policy in Ireland 
Abstract:
  This paper examines the impact of a monetary policy shock on output,
 prices and the exchange rate for Ireland during its participation in the
 EMS. The paper draws on recent techniques used in the structural vector
 autoregression literature. Results suggest that an exogenous temporary
 increase in the short-term interest rate leads to a decline in output and
 prices with the latter responding more sluggishly. In addition, a higher
 interest rate leads to an immediate appreciation of the domestic exchange
 rate and a subsequent depreciation of the currency. Exchange rate or
 forward bias puzzle, which are prevalent in other studies, are not found.
 The robustness of these results is checked under a number of alternative
 identifications schemes 
Journal: Applied Economics 
Pages: 49-58 
Issue: 1 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000177198 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177198 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:49-58




Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Hsiu Laih 
Author-X-Name-First: Chen-Hsiu 
Author-X-Name-Last: Laih 
Title: Effects of the optimal step toll scheme on equilibrium commuter behaviour 
Abstract:
  This paper derives commuters' equilibrium queuing costs and equilibrium
 schedule delay costs before and after levying the optimal step tolls at a
 queuing bottleneck. Dealing with these equilibrium costs technically one
 can forecast some changes in equilibrium commuter behaviour from the
 no-toll to the optimal step toll cases. There is some useful information
 provided in this paper. First, the number of commuters who will or will
 not pay the tolls can be investigated before tolling a queuing bottleneck.
 Second, all commuters' departure time switching decisions from the no-toll
 to the tolled cases can be investigated before tolling. Third, the
 increased leisure time in the morning to the toll payer due to depart from
 home later than their original departure times in the no-toll case can be
 investigated before tolling. The above information of equilibrium commuter
 behaviour, which the related literature has failed to provide, is useful
 to policy-makers if the optimal step toll scheme is considered to be put
 into practice. 
Journal: Applied Economics 
Pages: 59-81 
Issue: 1 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000177206 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177206 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:59-81




Template-Type: ReDIF-Article 1.0
Author-Name: Petr Mariel 
Author-X-Name-First: Petr 
Author-X-Name-Last: Mariel 
Author-Name: Joel Sandonis 
Author-X-Name-First: Joel 
Author-X-Name-Last: Sandonis 
Title: A model of advertising with application to the German automobile industry 
Abstract:
  This paper develops a dynamic duopolistic model of advertising and price
 competition. Advertising accumulates a stock of goodwill which enters
 directly into the demand functions and both the cooperative and predatory
 effects of advertising are considered. It is shown that firms invest more
 in advertising the higher the degree of cooperativeness of advertising and
 some comparative static results are provided. In the second, empirical
 part of the article, estimations of the demand equations are presented
 using data from the German automobile industry. The main conclusion drawn
 is that advertising plays an important role in this market and has a
 predatory nature. 
Journal: Applied Economics 
Pages: 83-92 
Issue: 1 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000177215 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177215 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:83-92




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Healey 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Healey 
Author-Name: Martin Knapp 
Author-X-Name-First: Martin 
Author-X-Name-Last: Knapp 
Author-Name: David Farrington 
Author-X-Name-First: David 
Author-X-Name-Last: Farrington 
Title: Adult labour market implications of antisocial behaviour in childhood and adolescence: findings from a UK longitudinal study 
Abstract:
  While antisocial behaviour in younger age groups is largely viewed as a
 public externality issue, there are also reasons for expecting less
 favourable life-course outcomes for those individuals who follow
 antisocial developmental pathways. Data from a UK longitudinal study of
 delinquent development in a cohort of working class boys are used to model
 the adult labour market implications of different antisocial developmental
 pathways to age 32. A series of probit estimations suggests that children
 identified as troublesome by peers and teachers at an early age, and who
 subsequently engaged in delinquent behaviour throughout their adolescence,
 had a significantly higher probability of experiencing long periods of
 time out of the workforce prior to age 32 and lengthy periods of
 unemployment and/or low paid work at both age 18 and at age 32. A Heckman
 selectivity model estimated on weekly earnings at age 32 does not provide
 evidence that antisocial development in children and adolescents is
 associated with a lower wage. However, the findings from a two-part model
 suggest that antisocial boys will have significantly lower levels of
 expected earnings from employment at 32 years--an effect that is almost
 entirely the result of lower rates of workforce participation. While a
 full causal, structural model of labour outcomes is not developed, there
 is tentative evidence that relatively poor employment outcomes for
 antisocial boys are mediated through poor educational attainment at
 secondary school and higher rates of criminal conviction in early
 adulthood. 
Journal: Applied Economics 
Pages: 93-105 
Issue: 2 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000174001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:93-105




Template-Type: ReDIF-Article 1.0
Author-Name: John Baffoe-Bonnie 
Author-X-Name-First: John 
Author-X-Name-Last: Baffoe-Bonnie 
Title: Interindustry part-time and full-time wage differentials: regional and national analysis 
Abstract:
  This paper provides more evidence that the wage differential is far
 smaller than is suggested by simple comparison of gross wages of full-time
 and part-time workers. It is noted that to obtain a more reasonable
 measure of the full-time and part-time wage differential, it is necessary
 to adjust for differences in workers' characteristics, labour market
 conditions and sample selection. It is found that, in general, full-time
 and part-time workers exhibit different personal characteristics. In
 particular, full-time workers possess more human capital and experience
 than part-timers. Also, labour market conditions such as unions and
 pension plans favour full-timers. These differences may partly account for
 the wage disparity between full-time and part-time workers. It was noted
 that the nonrandomness of the workers into full-time and part-time jobs
 influences the wage determination of both full-time and part-time workers.
 The results indicate that the adjustment of the wage equations to reflect
 the above mentioned differences reduces the national wage differential
 between full-time and part-time workers by 10%. The reduction is even
 larger across regions and industries. Another finding was that the wage
 determination processes between full-time and part-time workers do differ. 
Journal: Applied Economics 
Pages: 107-118 
Issue: 2 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000174010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:107-118




Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Florio 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Florio 
Author-Name: Katiuscia Manzoni 
Author-X-Name-First: Katiuscia 
Author-X-Name-Last: Manzoni 
Title: Abnormal returns of UK privatizations: from underpricing to outperformance 
Abstract:
  This paper offers a review and discussion of the evidence concerning the
 underpricing and long-run performance of British PIPOs (Privatization
 Initial Public Offerings) between 1977 and 1996, i.e. from the first
 privatization under a Labour Government (British Petroleum), until the
 last ones by a Conservative Government (Railtrack). More recent years are
 excluded because the change of government, the introduction of a windfall
 tax on excess profits of regulated utilities, and changes in the
 regulatory regime, mark a totally different landscape compared with the
 previous twenty years. Evidence is found that underpricing was not
 followed by underperformance, as is usually observed with IPOs, but rather
 strong outperformance. This trend is decomposed by subgroups within a 55
 observations sample, and it is concluded that lax regulation was probably
 the main driving force of abnormal returns of British PIPOs. 
Journal: Applied Economics 
Pages: 119-136 
Issue: 2 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000174029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174029 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:119-136




Template-Type: ReDIF-Article 1.0
Author-Name: Lee Kian Lim 
Author-X-Name-First: Lee Kian 
Author-X-Name-Last: Lim 
Author-Name: Michael McAleer 
Author-X-Name-First: Michael 
Author-X-Name-Last: McAleer 
Title: Convergence and catching up in ASEAN: a comparative analysis 
Abstract:
  The increasing diversity of average growth rates and income levels across
 countries has generated a large literature on testing the income
 convergence hypothesis. Most countries in South-East Asia, particularly
 the five founding ASEAN member countries (ASEAN-5), have experienced
 substantial economic growth, with the pace of growth having varied
 substantially across countries. Recent empirical studies have found
 evidence of several convergence clubs, in which per capita incomes have
 converged for selected groupings of countries and regions. This paper
 applies different time series tests of convergence to determine if there
 is a convergence club for ASEAN-5, as well as ASEAN-5 and the USA. The
 catching up hypothesis states that the lagging country, with low initial
 income and productivity levels, will tend to grow more rapidly by copying
 the technology of the leader country, without having to bear the
 associated costs of research and development. Given the important effects
 of technological change on growth, this paper also examines whether
 ASEAN-5 is catching up technologically with the USA. 
Journal: Applied Economics 
Pages: 137-153 
Issue: 2 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000174038 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:137-153




Template-Type: ReDIF-Article 1.0
Author-Name: Kam-Ki Tang 
Author-X-Name-First: Kam-Ki 
Author-X-Name-Last: Tang 
Author-Name: Yi-Ping Tseng 
Author-X-Name-First: Yi-Ping 
Author-X-Name-Last: Tseng 
Title: Industry-specific human capital, knowledge labour, and industry wage structure in Taiwan 
Abstract:
  This paper investigates the role of industry-specific human capital
 (ISHC) in determining industry wage structure. The model presented in this
 paper distinguishes between knowledge labour and physical labour.
 Knowledge labour is physical labour embodied with ISHC. It is postulated
 that more ISHC-intensive industries, such as high-tech industries, pay
 higher wages and the wage premiums increase with workers' experience. The
 hypothesis is tested using a merged sample of 1997-1999 manpower
 utilization survey data from a newly industrialized economy&#x2014;Taiwan.
 The findings show support for the effect of ISHC. 
Journal: Applied Economics 
Pages: 155-164 
Issue: 2 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000174047 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:155-164




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Mikek 
Author-X-Name-First: Peter 
Author-X-Name-Last: Mikek 
Title: Inflation targeting and switch of fiscal regime in New Zealand 
Abstract:
  Monetary policy cannot be adequately addressed without also specifying
 fiscal policy. I interpret the economic reforms in New Zealand in the
 1980s using a simple model that includes reaction functions of both
 monetary and fiscal policy. The interpretation is based on the wealth
 effects of the government debt. The successful and sustainable shift in
 monetary policy regime in New Zealand was supported by a compatible switch
 in fiscal policy. 
Journal: Applied Economics 
Pages: 165-172 
Issue: 2 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000174056 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174056 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:165-172




Template-Type: ReDIF-Article 1.0
Author-Name: Jongsup Kim 
Author-X-Name-First: Jongsup 
Author-X-Name-Last: Kim 
Title: Growth of regional economy and income inequality: county-level evidence from Florida, USA 
Abstract:
  The purpose of this paper is to find the homogeneous groups and growth
 factors of Florida's counties through factor analysis and cluster analysis
 from data sets from 1979 and 2000 and to grasp the relationship between
 income inequality and growth by cluster using the derived growth factors.
 The numbers of factors divided through factor analysis were three, and six
 groups were obtained from cluster analysis. County-level evidence of this
 paper indicates that GI_DI and SIN have a strong effect and are
 statistically significant to the growth rate. Results for income
 inequality by county and region indicate significant differences between
 counties, including counties where agriculture accomplishes the primary
 main function. Therefore, government should adopt the following policies:
 minimum wage, unemployment insurance, local or state tax policies, income
 support programmes, and tax reform. 
Journal: Applied Economics 
Pages: 173-183 
Issue: 2 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000174065 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174065 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:173-183




Template-Type: ReDIF-Article 1.0
Author-Name: Clive Belfield 
Author-X-Name-First: Clive 
Author-X-Name-Last: Belfield 
Author-Name: Xiangdong Wei 
Author-X-Name-First: Xiangdong 
Author-X-Name-Last: Wei 
Title: Employer size-wage effects: evidence from matched employer-employee survey data in the UK 
Abstract:
  This paper employs a random sample of matched employer-employee data from
 the UK to test seven possible explanations for the positive relationship
 between employer size and pay. Individual wage equations show a large
 employer size-wage premium. We then control for a range of
 establishment-level variables, based on seven hypotheses typically
 advanced to explain this premium. Each establishment-level factor reduces
 the wage premium, but a sizeable premium nonetheless remains. In
 adjudicating on these hypotheses, we find a strong association between the
 internal labour market and the employer size-wage premium. This finding
 supports the theory that the employer size-wage effect may be due to the
 higher costs of turnover or monitoring in larger firms. However, we find
 contrasting effects for public versus private sector establishments. 
Journal: Applied Economics 
Pages: 185-193 
Issue: 3 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000175316 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175316 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:185-193




Template-Type: ReDIF-Article 1.0
Author-Name: William Crowder 
Author-X-Name-First: William 
Author-X-Name-Last: Crowder 
Author-Name: Mark Wohar 
Author-X-Name-First: Mark 
Author-X-Name-Last: Wohar 
Title: A cointegrated structural VAR model of the Canadian economy 
Abstract:
  This paper implements a cointegrated structural VAR model of the Canadian
 economy using quarterly data over the period 1964-1994. The dynamic
 properties of the estimated model are compared to the predictions of a
 simple textbook macro model. Four long-run equilibrium relationships are
 tested: (i) consumption-income; (ii) consumption-wealth; (iii) money
 demand; and (iv) the Fisher equation. The empirical results obtained are
 generally consistent with the predictions of the textbook model's long-run
 implications, although level shifts are observed in the consumption/income
 and the wealth/income ratios. Similarly it is found that there was an
 increase in the ex post real interest rate, implying a level shift in the
 Fisher relation, following the Bank of Canada's policy change towards a
 stable price level target. 
Journal: Applied Economics 
Pages: 195-213 
Issue: 3 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000175325 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175325 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:195-213




Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Girardone 
Author-X-Name-First: Claudia 
Author-X-Name-Last: Girardone 
Author-Name: Philip Molyneux 
Author-X-Name-First: Philip 
Author-X-Name-Last: Molyneux 
Author-Name: Edward Gardener 
Author-X-Name-First: Edward 
Author-X-Name-Last: Gardener 
Title: Analysing the determinants of bank efficiency: the case of Italian banks 
Abstract:
  This study investigates the main determinants of Italian banks' cost
 efficiency over the period 1993-1996, by employing a Fourier-flexible
 stochastic cost frontier in order to measure X-efficiencies and economies
 of scale. Quality and riskiness of bank outputs are explicitly accounted
 for in the cost function and their impact on cost efficiency levels is
 evaluated. The results show that mean X-inefficiencies range between 13
 and 15 per cent of total costs and they tend to decrease over time for all
 bank sizes. Economies of scale appear present and significant, being
 especially high for popular and credit co-operative banks. Moreover, the
 inclusion of risk and output quality variables in the cost function seems
 to reduce the significance of the scale economy estimates. Following Spong
 et al. (1995) a profitability test is undertaken that allows for the
 identification of banks that are both cost and profit efficient. The
 results suggest that the most efficient and profitable institutions are
 more able to control all aspects of costs, especially labour costs.
 Finally, the data are pooled to carry out a logistic regression model in
 order to examine bank- and market-specific factors that influence Italian
 banks' inefficiency. Confirming Mester (1993, 1996), inefficiencies appear
 to be inversely correlated with capital strength and positively related to
 the level of non-performing loans in the balance sheet. The analysis also
 shows that there is no clear relationship between asset size and bank
 efficiency. Finally, it is possible to infer that quoted banks seem to be
 on average more efficient than their non-quoted counterparts. 
Journal: Applied Economics 
Pages: 215-227 
Issue: 3 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000175334 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175334 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:215-227




Template-Type: ReDIF-Article 1.0
Author-Name: Helena Lenihan 
Author-X-Name-First: Helena 
Author-X-Name-Last: Lenihan 
Title: Evaluating Irish industrial policy in terms of deadweight and displacement: a quantitative methodological approach 
Abstract:
  Evaluation should consider what would have happened in the absence of
 assistance. To produce an assessment of this counter-factual scenario
 involves considering the twin concepts of deadweight and displacement. An
 evaluative framework is developed for measuring the impact of grant
 assistance to individual firms. Logit regression analysis is used to
 estimate predictive models for deadweight and displacement. The data were
 gathered during face-to-face interviews with the managing directors of
 firms that received grants from Shannon Development in the Shannon region
 of Ireland (self-assessment approach). The objective was to establish
 whether certain characteristics of grant-assisted firms can predict
 probable deadweight and displacement effects. In the case of deadweight,
 it was found that grant type, size of firm, whether investment appraisal
 carried out by firm included grant received and whether firm was a
 first-time or repeat grant recipient all impact on the level of
 deadweight. Regarding displacement, it was found that size of firm and
 type of ownership impact on displacement. While the evaluative framework
 has been 'tested' in an Irish regional context, the logic of the approach
 is clear and has a much wider international applicability regarding the
 evaluation of industrial policy interventions. 
Journal: Applied Economics 
Pages: 229-252 
Issue: 3 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000175343 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175343 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:229-252




Template-Type: ReDIF-Article 1.0
Author-Name: Sung Jin Kang 
Author-X-Name-First: Sung Jin 
Author-X-Name-Last: Kang 
Title: The evolution of regional income distribution in Japan 
Abstract:
  Using data on per capita income of Japan's 47 prefectures between 1955
 and 1997, this paper shows that one of the most popular measurements of
 convergence, &#x3c3;-convergence, is not invariant with both
 transformation and definition of dispersion. Measured by the standard
 deviation, the actual per capita income has diverged, whereas measured by
 the coefficients of variation, it has converged since 1955. The log of per
 capita income and relative income of all prefectures to Tokyo, however,
 have converged regardless of the measurement of dispersion. In addition,
 through the estimation of density function and transition matrix, the
 intradistribution dynamics of each prefecture's per capita income is
 identified. 
Journal: Applied Economics 
Pages: 253-259 
Issue: 3 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000175352 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175352 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:253-259




Template-Type: ReDIF-Article 1.0
Author-Name: Sushanta Mallick 
Author-X-Name-First: Sushanta 
Author-X-Name-Last: Mallick 
Title: A dynamic macroeconometric model for short-run stabilization in India 
Abstract:
  A small macroeconometric model examining the determinants of India's
 trade and inflation is developed to address the effects of a reform policy
 package similar to those implemented in 1991. This is different from the
 previous studies in two important respects. First, inflation has been
 modelled in an open economy context, and second, the non-stationarity of
 the data into the model and estimation procedures has been explicitly
 incorporated, suggesting that the stationarity assumption in earlier
 studies may be a source of misspecification. The model in this paper has
 been estimated using data from 1950 to 1995 employing fully modified
 Phillips-Hansen method of estimation to obtain the cointegrating relations
 and the short-run dynamic model. Policy simulations using dynamic
 simulation method compare the responses to devaluation with the responses
 to tight credit policy. It is shown that the trade balance effects of
 tight credit policy are more enduring than that of devaluation. The
 simulations demonstrate that the devaluation actually worsens trade
 balance and hence devaluation cannot be an option in response to a
 negative trade shock, whereas the reduction in domestic credit reflecting
 demand contraction produces a desirable improvement in the trade balance. 
Journal: Applied Economics 
Pages: 261-276 
Issue: 3 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000175361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:261-276




Template-Type: ReDIF-Article 1.0
Author-Name: Yannick L'horty 
Author-X-Name-First: Yannick 
Author-X-Name-Last: L'horty 
Author-Name: Christophe Rault 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Rault 
Title: Inflation, minimum wage and other wages: an econometric study on French macroeconomic data 
Abstract:
  This study examines the set of interdependences between the formation of
 wages, prices and the minimum wage (SMIC) through a vectorial error
 correction model estimated on French quarterly macroeconomic data covering
 the 1970-1/1999-4 period. Two periods are distinguished: the period of
 inflation rise from 1970 to 1981, which coincides with an important
 squeeze of the wage range, measured by the ratio of the minimum wage to
 the hourly wage rate; the period of disinflation since 1981, that has been
 concomitant with a stability of wage inequalities. Disinflation has hardly
 benefited the evolution of the SMIC which has always profited by price
 rises, in real and relative terms, which have become less strong. This
 evolution does not benefit any more on wage rises, when the
 interdependences between variables are taken into account. The SMIC seems
 however to have gained in efficiency as an instrument on wage disparity
 reduction. It rises are finally more persistent in real terms and
 relatively to the other salaries and have always as little inflationary
 impact on wages as on prices. 
Journal: Applied Economics 
Pages: 277-290 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001674213 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674213 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:277-290




Template-Type: ReDIF-Article 1.0
Author-Name: Alessandra Guariglia 
Author-X-Name-First: Alessandra 
Author-X-Name-Last: Guariglia 
Author-Name: Yiing Jia Loke 
Author-X-Name-First: Yiing Jia 
Author-X-Name-Last: Loke 
Title: What determines the value and volume of noncash transactions? Evidence from a panel of European and North American countries 
Abstract:
  Using data from a panel of 15 countries over the period 1990-1998, the
 determinants of the use of non cash payment instruments are analysed. The
 estimation results highlight the importance of distinguishing between the
 determinants of the value and volume of noncash transactions. It is found
 in fact that the volume of these transactions is generally affected by
 changes in the determinants more strongly than their value, and that
 variables such as the interest rate have a different impact on the volume
 and the value of the transactions. The findings also suggest that past
 habits play a dominant role in the intensity of use of noncash payment
 instruments. 
Journal: Applied Economics 
Pages: 291-303 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684041000167222 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684041000167222 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:291-303




Template-Type: ReDIF-Article 1.0
Author-Name: James McGibany 
Author-X-Name-First: James 
Author-X-Name-Last: McGibany 
Author-Name: Farrokh Nourzad 
Author-X-Name-First: Farrokh 
Author-X-Name-Last: Nourzad 
Title: Do lower mortgage rates mean higher housing prices? 
Abstract:
  Much research has shown that mortgage rates exert a negative influence on
 housing prices. This study analyses the long- and short-run relationships
 between housing prices and mortgage rates using advanced nonstructural
 estimation methods. As expected, a bivariate specification and a
 four-variable housing demand specification both show that these variables
 have a long-run relationship, and that there is a rather inelastic
 response of housing prices to changes in mortgage rates. However, contrary
 to previous research, the results from Granger non-causality tests,
 impulse response functions and variance decompositions reveal that there
 is virtually no short-run influence from mortgage rates to housing prices. 
Journal: Applied Economics 
Pages: 305-313 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001674231 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674231 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:305-313




Template-Type: ReDIF-Article 1.0
Author-Name: Les Coleman 
Author-X-Name-First: Les 
Author-X-Name-Last: Coleman 
Title: New light on the longshot bias 
Abstract:
  The longshot bias is the tendency for bettors to put more money on horses
 with long odds than is justified by their objective probability of
 winning: thus favourites win more often than projected by their odds. This
 challenges normative assumptions as it means the return increases with the
 probability of winning. Even though the longshot bias is well-known, it
 has defied authoritative explanation. This article draws on studies of the
 longshot bias over 50 years across four continents to show that its nature
 is consistent with two bettor populations. One is risk-averse,
 knowledgeable about winners, backs favourites, believes in the gambler's
 fallacy, and has a positive expected return. The other, a larger group is
 risk loving, backs longshots, believes in hot hands, and has a
 significant, negative expected return. The crossover between the two
 groups occurs where the probability of a positive result is about 0.2.
 This matches the transition from risk aversion to risk embrace which has
 been found in a variety of behavioural studies. 
Journal: Applied Economics 
Pages: 315-326 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001674240 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674240 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:315-326




Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Sutter 
Author-X-Name-First: Matthias 
Author-X-Name-Last: Sutter 
Author-Name: Martin Kocher 
Author-X-Name-First: Martin 
Author-X-Name-Last: Kocher 
Title: Patterns of co-authorship among economics departments in the USA 
Abstract:
  Given the steady increase in co-authored papers in economics journals,
 this paper reports a study of the patterns of co-authorship between US
 universities and colleges. A majority of institutions produce more
 co-authored than single-authored papers. Contacts with researchers from
 the same institution are still an important source of co-authored papers,
 even though slightly decreasing in frequency. The determinants of
 co-authorship outside the own institution are tested in a gravity model
 and it is found that distance and other geographical variables do not
 matter. However, the quality of co-authors' institutions, measured by
 rankings of institutions, has a significant impact on the number of
 co-authored papers in top economics journals. 
Journal: Applied Economics 
Pages: 327-333 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001674259 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674259 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:327-333




Template-Type: ReDIF-Article 1.0
Author-Name: Amado Peiro 
Author-X-Name-First: Amado 
Author-X-Name-Last: Peiro 
Title: Are business cycles asymmetric? Some European evidence 
Abstract:
  Economic thought has often regarded business cycles as asymmetric. This
 study examines the existence of asymmetries over the business cycle in
 seven European countries: France, Germany, Ireland, Italy, Luxembourg, The
 Netherlands and the United Kingdom. To analyse this issue, industrial
 production in these countries from 1957 to 1998 is examined, and quarterly
 contractions and expansions in this variable are compared. The results
 obtained with both parametric and non-parametric methods allow the
 existence of asymmetries in these countries to be questioned. 
Journal: Applied Economics 
Pages: 335-342 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001674268 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674268 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:335-342




Template-Type: ReDIF-Article 1.0
Author-Name: Yuji Honjo 
Author-X-Name-First: Yuji 
Author-X-Name-Last: Honjo 
Title: Growth of new start-up firms: evidence from the Japanese manufacturing industry 
Abstract:
  This study investigates firm growth as the post-entry performance of new
 start-up firms. Using data on Japanese manufacturing firms founded during
 1992-1996, the determinants of growth are identified among new start-up
 firms. The effect is examined, not only of firm-specific characteristics
 but also of entrepreneur-specific, industry-specific and local
 characteristics on firm growth. It is found that younger and small-sized
 firms are more likely to grow among the start-ups. It is also found that
 entrepreneur's age and educational background affect the growth of
 start-ups. It is not shown, however, that industry specialization induces
 the growth of start-ups. 
Journal: Applied Economics 
Pages: 343-355 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001674277 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674277 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:343-355




Template-Type: ReDIF-Article 1.0
Author-Name: Carmela Di Mauro 
Author-X-Name-First: Carmela Di 
Author-X-Name-Last: Mauro 
Author-Name: Anna Maffioletti 
Author-X-Name-First: Anna 
Author-X-Name-Last: Maffioletti 
Title: Attitudes to risk and attitudes to uncertainty: experimental evidence 
Abstract:
  In a series of experiments the interactions among individual attitudes
 towards risk and uncertainty, the sign of the outcome domain, and the way
 uncertainty is represented are tested. This is done in a unified
 framework, eliciting individual values by means of a second price auction.
 Results confirm the presence of the well-known fourfold pattern of risk
 attitude (risk aversion for gains and risk seeking for losses at high
 probability, and risk seeking for gains and risk aversion for losses at
 low probability) and show that this pattern can also be extended to
 uncertainty. In the valuation of losses the modal pattern is decreasing
 risk and uncertainty aversion as the probability of loss increases, while
 increasing risk and uncertainty aversion is observed for gains. Moreover,
 it is found that the size of reaction to uncertainty does not depend on
 the outcome domain, and that it persists in the face of an
 incentive-compatible mechanism to elicit preferences. 
Journal: Applied Economics 
Pages: 357-372 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001674286 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674286 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:357-372




Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Bask 
Author-X-Name-First: Mikael 
Author-X-Name-Last: Bask 
Author-Name: Maria Melkersson 
Author-X-Name-First: Maria 
Author-X-Name-Last: Melkersson 
Title: Rationally addicted to drinking and smoking? 
Abstract:
  When modelling demand for addictive consumption goods, the most widely
 used framework is the rational addiction model proposed by Becker and
 Murphy. This paper extends the rational addiction model to include two
 addictive consumption goods, alcohol and cigarettes, and using aggregate
 annual time series on sales volumes for the period 1955-1999, estimates
 the aggregate demand for these goods in Sweden, where OLS estimates are
 compared to GMM estimates allowing for possible endogeneity of lagged and
 lead consumption. First, the demand for alcohol and cigarettes are
 estimated as separate equations and it is found that alcohol demand is
 quite well described by the rational addiction model while the same is not
 true for cigarettes. The own-price elasticities are negative, and alcohol
 demand is more elastic than cigarette demand. The cross-price elasticities
 are also negative, showing that alcohol and cigarettes are complements.
 Since consumption of alcohol and cigarettes are probably simultaneous
 decisions, the demand for these goods is estimated as a system of
 equations and it is found that alcohol demand is still positively affected
 by lagged and lead consumption while cigarette demand is not. It is also
 found that the elasticities obtained are now generally smaller compared to
 when estimating the equations separately. 
Journal: Applied Economics 
Pages: 373-381 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001674295 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674295 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:373-381




Template-Type: ReDIF-Article 1.0
Author-Name: Inna Cabelkova 
Author-X-Name-First: Inna 
Author-X-Name-Last: Cabelkova 
Author-Name: Jan Hanousek 
Author-X-Name-First: Jan 
Author-X-Name-Last: Hanousek 
Title: The power of negative thinking: corruption, perception and willingness to bribe in Ukraine 
Abstract:
  This study provides an empirical analysis of the association between
 corruption perception and the willingness to offer bribes, as well as of
 the influence of different sources of information on corruption perception
 in the Ukraine. The higher the perceived corruption in an organization,
 the more probable it is that a person dealing with that organization will
 offer a bribe, therefore supporting corruption. Since corruption scandals
 in Ukraine seldom result in legal action, information about corruption in
 the mass media might actually encourage people to give bribes. This study
 found that corruption perception is one of the key factors in giving a
 bribe and that its positive/negative effects strongly depend on
 institutions and government policies. 
Journal: Applied Economics 
Pages: 383-397 
Issue: 4 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001674303 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674303 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:383-397




Template-Type: ReDIF-Article 1.0
Author-Name: David Bessler 
Author-X-Name-First: David 
Author-X-Name-Last: Bessler 
Author-Name: Robert Ruffley 
Author-X-Name-First: Robert 
Author-X-Name-Last: Ruffley 
Title: Prequential analysis of stock market returns 
Abstract:
  The Brier score and a covariance partition due to Yates are considered to
 study the probabilistic forecasts of a vector autoregression on stock
 market returns. Probabilistic forecasts from a model and data developed by
 Campbell (1991) are studied with ordinary least squares. Calibration
 measures and the Brier score and its partition are used for model
 assessment. The partitions indicate that the ordinary least squares
 version of Campbell's model does not forecast stock market returns
 particularly well. While the model offers honest probabilistic forecasts
 (they are well-calibrated), the model shows little ability to sort events
 that occur into different groups from events that do not occur. The
 Yates-partition demonstrates this shortcoming. Calibration metrics do not. 
Journal: Applied Economics 
Pages: 399-412 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682115 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682115 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:399-412




Template-Type: ReDIF-Article 1.0
Author-Name: Jati Sengupta 
Author-X-Name-First: Jati 
Author-X-Name-Last: Sengupta 
Title: Estimating technical change by nonparametric methods 
Abstract:
  A nonparametric method using dynamic data envelopment analysis is
 developed here to specify and estimate a dynamic production frontier. By
 this technique technological progress measured by the time shift of the
 production frontier and the scale economies measured by increasing returns
 to scale are estimated from the observed input output data, which may
 sometimes be nonstationary. An application to US computer industry
 exhibits substantial technological progress and scale economies over the
 period 1987-1998. 
Journal: Applied Economics 
Pages: 413-420 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682124 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682124 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:413-420




Template-Type: ReDIF-Article 1.0
Author-Name: David Madden 
Author-X-Name-First: David 
Author-X-Name-Last: Madden 
Title: Labour market discrimination on the basis of health: an application to UK data 
Abstract:
  An analysis of wage discrimination is carried out on the basis of health
 on UK data with a number of important modifications. First selection is
 controlled for into both health and labour market status. Second the
 direct effect of health upon productivity is accounted for and third,
 discrimination is examined with regard to participation as well as wages.
 The question of selection into health status is found to be of little
 empirical importance but taking account of selection into labour market
 status and the direct impact of health upon productivity leads to a fall
 in measured discrimination. The paper finds similar results with regard to
 participation. It is also examined whether these effects differ across age
 and gender. 
Journal: Applied Economics 
Pages: 421-442 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682133 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682133 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:421-442




Template-Type: ReDIF-Article 1.0
Author-Name: Eleanor Doyle 
Author-X-Name-First: Eleanor 
Author-X-Name-Last: Doyle 
Title: Exchange rate pass-through in a small open economy: the Anglo-Irish case 
Abstract:
  Bilateral import unit values are constructed to investigate the extent
 and speed of exchange rate and production cost pass-through into the unit
 values of Irish imports (total and sectoral) from the UK using Menon's
 (1996) mark-up model. The approach used to measure exchange rate
 pass-through is based on cointegration and error-correction modelling and
 the period of analysis is from 1979 to 1995. Full pass-through from the
 bilateral Irish pound-Sterling exchange rate and from UK producer costs
 could not be rejected for total and sectoral import unit values for the
 sample period 1979q1-1995q4. This implies no role for domestic competing
 prices in explaining the long-run relationship determining unit values of
 Irish imports from the UK. The results indicate that for aggregate and
 sectoral unit values of Irish imports from the UK pass-through is
 incomplete in the short-run. 
Journal: Applied Economics 
Pages: 443-455 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682142 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:443-455




Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Dritsakis 
Author-X-Name-First: Nikolaos 
Author-X-Name-Last: Dritsakis 
Author-Name: Antonis Adamopoulos 
Author-X-Name-First: Antonis 
Author-X-Name-Last: Adamopoulos 
Title: A causal relationship between government spending and economic development: an empirical examination of the Greek economy 
Abstract:
  During the past few years, in many countries, both developed and
 developing, there has been a tendency to increase government spending.
 This article intends to examine this tendency of the public sector as well
 as the existing relationship between the extent of government spending and
 economic development. The data used cover a time period between 1960 and
 2001. An effort is made to determine causal relationships between spending
 and economic development through the use of Wagner's theory. 
Journal: Applied Economics 
Pages: 457-464 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682151 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682151 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:457-464




Template-Type: ReDIF-Article 1.0
Author-Name: Natalia Barbosa 
Author-X-Name-First: Natalia 
Author-X-Name-Last: Barbosa 
Author-Name: Paulo Guimaraes 
Author-X-Name-First: Paulo 
Author-X-Name-Last: Guimaraes 
Author-Name: Douglas Woodward 
Author-X-Name-First: Douglas 
Author-X-Name-Last: Woodward 
Title: Foreign firm entry in an open economy: the case of Portugal  
Abstract:
  The purpose of this paper is to analyse the entry process of foreign
 direct investment (FDI) in Portuguese industrial sectors. Portugal
 presents an interesting case where firms enter to take advantage of export
 opportunities. The results suggest that foreign firms possess the ability
 to overcome existing entry barriers that affect domestic firms.
 Apparently, foreign firms have different expectations about profitability
 than domestic firms, possibly due to foreign firms' export-orientation to
 the rest of the European Union (EU). They appear to desire industries
 where other foreign firms have clustered. Above all, it appears that these
 foreign firms enter industries to exploit Portugal's chief location
 advantage in Western Europe: low wages. Portugal's FDI experience is
 relevant to other countries that have opened their economies to greater
 trade and investment and attracted export-oriented firms. 
Journal: Applied Economics 
Pages: 465-472 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682160 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682160 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:465-472




Template-Type: ReDIF-Article 1.0
Author-Name: Jacint Balaguer 
Author-X-Name-First: Jacint 
Author-X-Name-Last: Balaguer 
Author-Name: Manuel Cantavella-Jorda 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Cantavella-Jorda 
Title: Structural change in exports and economic growth: cointegration and causality analysis for Spain (1961-2000) 
Abstract:
  The Spanish export-led growth hypothesis is re-examined from the trade
 liberalization process initiated four decades ago. For this purpose both
 the export expansion and the progression from 'traditional' exports to
 manufactured and semimanufactured exports are taken into consideration. A
 new evidence is reported for the above period. Alongside a feedback
 between aggregate exports and real output, it has been proved that the
 structural transformation in export composition has also become a key
 factor for Spain's economic development. 
Journal: Applied Economics 
Pages: 473-477 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682179 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682179 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:473-477




Template-Type: ReDIF-Article 1.0
Author-Name: Akihiko Kawaura 
Author-X-Name-First: Akihiko 
Author-X-Name-Last: Kawaura 
Title: Deregulation and governance: plight of Japanese banks in the 1990s 
Abstract:
  The governance structure of public corporations is determined by the
 agency relationship between shareholders and managers, and the agency
 theory predicts that deregulation of an industry leads to governance
 adaptation. Deregulation of the Japanese banking business in the 1980s
 offers an interesting case study in this framework, as Japanese banks fell
 into serious solvency problems in the post-deregulation 1990s. This paper
 investigates whether ineffective governance was responsible for the plight
 of Japanese banks. The sample is 384 corporations that were listed on the
 Tokyo Stock Exchange between 1983 and 1990, which includes 59 banks. One
 of the findings is that bank shareholders allowed more diffuse ownership
 structure after deregulation, which demonstrates that the agency theory
 did not hold for shareholders of Japanese banks. 
Journal: Applied Economics 
Pages: 479-484 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682188 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682188 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:479-484




Template-Type: ReDIF-Article 1.0
Author-Name: Audun Lang&#xf8;rgen 
Author-X-Name-First: Audun 
Author-X-Name-Last: Lang&#xf8;rgen 
Title: Needs, economic constraints, and the distribution of public home-care 
Abstract:
  When private goods are publicly provided at subsidized prices, government
 authorities have to determine the distribution of services on recipients.
 The distribution of services according to need is frequently referred to
 as an important policy goal. Thus governments are assumed to develop
 standards for evaluating the relative needs of different clients. This
 paper analyses the impact of needs and economic constraints on the
 distribution of public home-care in Norway. The empirical results show
 that individual needs have a significant effect on the distribution of
 home-care. Another finding is that local public authorities with higher
 disposable incomes meet client needs better. Finally the results are
 utilized to derive a measure of client-specific need. 
Journal: Applied Economics 
Pages: 485-496 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682197 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682197 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:485-496




Template-Type: ReDIF-Article 1.0
Author-Name: Giannis Karagiannis 
Author-X-Name-First: Giannis 
Author-X-Name-Last: Karagiannis 
Author-Name: Kostas Velentzas 
Author-X-Name-First: Kostas 
Author-X-Name-Last: Velentzas 
Title: Decomposition analysis of consumers' demand changes: an application to Greek consumption data 
Abstract:
  A decomposition analysis for consumer demand functions is developed.
 Changes in Marshallian demand or expenditure shares functions over time
 are decomposed into a total substitution effect, an income effect, and a
 habit effect. This framework is applied to post-war Greek consumption
 patterns through a habit persistence version of the Quadratic Almost Ideal
 Demand System (QUAIDS). It is found that for all commodity categories
 (i.e., food, beverages and tobacco, footwear and clothing, settling and
 housing, and others) the income effect was the main driving force in
 explaining changes in both quantity demanded and expenditure shares,
 followed by habit and total substitution effects. 
Journal: Applied Economics 
Pages: 497-504 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682205 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:497-504




Template-Type: ReDIF-Article 1.0
Author-Name: Hubert Janicki 
Author-X-Name-First: Hubert 
Author-X-Name-Last: Janicki 
Author-Name: Phanindra Wunnava 
Author-X-Name-First: Phanindra 
Author-X-Name-Last: Wunnava 
Title: Determinants of foreign direct investment: empirical evidence from EU accession candidates 
Abstract:
  This study examines bilateral foreign direct investments (FDI) between
 the members of the European Union and eight central and east European
 candidate (CEEC) economies in transition, awaiting accession into the
 European Union (EU). Cross-section data were obtained for Bulgaria, Czech
 Republic, Estonia, Hungary, Poland, Romania, Slovak Republic, and Slovenia
 for 1997. Once the main characteristics of FDI recipient and donor nations
 are identified in a bilateral framework, it will be feasible to predict
 future FDI inflows. This study reveals that the key determinants of FDI
 inflows in CEECs are size of the host economy, host country risk, labour
 costs in host country, and openness to trade. Countries that are receiving
 fewer foreign investments could make themselves more attractive to
 potential donor nations by focusing on some of the key determinants
 identified by this study. 
Journal: Applied Economics 
Pages: 505-509 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682214 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682214 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:505-509




Template-Type: ReDIF-Article 1.0
Author-Name: Dan Friesner 
Author-X-Name-First: Dan 
Author-X-Name-Last: Friesner 
Author-Name: Robert Rosenman 
Author-X-Name-First: Robert 
Author-X-Name-Last: Rosenman 
Title: Non-profit cost-adjusting with quality as a private good 
Abstract:
  Nonprofit firms that produce multiple outputs may lower service intensity
 for one patient group in response to lower reimbursements for another
 group. This is termed 'cost-adjusting' behaviour. Cost-adjusting implies a
 serious welfare transfer. The results of this analysis suggest that the
 potential for this welfare transfer exists; however, the ability of a firm
 to exploit this welfare transfer depends largely on the demand conditions
 present in the market. An empirical analysis finds evidence that nonprofit
 hospitals in Washington State do practise cost-adjusting. 
Journal: Applied Economics 
Pages: 511-523 
Issue: 5 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001682223 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682223 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:511-523




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Telhado Pereira 
Author-X-Name-First: Pedro Telhado 
Author-X-Name-Last: Pereira 
Author-Name: Pedro Silva Martins 
Author-X-Name-First: Pedro Silva 
Author-X-Name-Last: Martins 
Title: Returns to education and wage equations 
Abstract:
  The paper shows why considering a number of education-dependent
 covariates in a wage equation decreases the coefficient of education in
 that equation. This result is illustrated empirically with a meta-analysis
 for Portugal. The education coefficient decreases when covariates are used
 that can be considered post-education decisions; on the other hand, it is
 independent of sample size, tenure and whether hourly or monthly wages are
 used. These results support the use of a simple specification of the
 Mincer equation for the study of the total returns to education. 
Journal: Applied Economics 
Pages: 525-531 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217571 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217571 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:525-531




Template-Type: ReDIF-Article 1.0
Author-Name: Mustapha Baghli 
Author-X-Name-First: Mustapha 
Author-X-Name-Last: Baghli 
Title: Modelling the FF/MM rate by threshold cointegration analysis 
Abstract:
  This paper investigates a sticky-price model of exchange rate
 determination: extension of Krugman's target zone model with price inertia
 applied to the French Franc. A novel theoretical argument is considered,
 Threshold Cointegration, such that the long-run relationship between the
 parity and its fundamentals is dormant within a certain range of
 disequilibria but is restored when the system crosses the boundaries. Over
 the period 1987-1993, nonlinearities in the FF/DM rate, consistent with
 the credibility of this target zone, were detected by pointing out a
 band-reversion mechanism. A shock persistence analysis which highlights a
 nonlinear reversion of the exchange-rate deviation is also implemented. 
Journal: Applied Economics 
Pages: 533-548 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217580 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:533-548




Template-Type: ReDIF-Article 1.0
Author-Name: Karen Cabos 
Author-X-Name-First: Karen 
Author-X-Name-Last: Cabos 
Author-Name: Nikolaus Siegfried 
Author-X-Name-First: Nikolaus 
Author-X-Name-Last: Siegfried 
Title: Controlling inflation in Euroland 
Abstract:
  The experience with the two pillar strategy of the European Central Bank
 (ECB) suggests that at some point in the future the ECB may have to commit
 to one of the more traditional policy strategies - a direct inflation
 target or an intermediate monetary target. This study offers some
 information on the scale of control and indicator problems associated with
 both strategies. We estimate the links between monetary policy actions and
 inflation in dynamic linear models with the Kalman filter. Using European
 M3 that the ECB has published, it is found that the overall control
 problems involved in targeting money are larger than for direct inflation
 targets. 
Journal: Applied Economics 
Pages: 549-558 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217599 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217599 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:549-558




Template-Type: ReDIF-Article 1.0
Author-Name: Buly Cardak 
Author-X-Name-First: Buly 
Author-X-Name-Last: Cardak 
Author-Name: James Ted McDonald 
Author-X-Name-First: James Ted 
Author-X-Name-Last: McDonald 
Title: Neighbourhood effects, preference heterogeneity and immigrant educational attainment 
Abstract:
  This paper investigates differences between the educational attainment of
 immigrants, children of immigrants and native-born individuals in
 Australia by using Australian Youth Survey (AYS) data combined with
 aggregate Australian Census data. Differences in educational attainment
 are decomposed into: (i) typical demographic and socio-economic sources
 common to all ethnic groups; (ii) unobserved region of residence and
 region of origin effects; and (iii) neighbourhood effects such as degree
 and ethnic concentration of particular ethnic groups in different
 neighbourhoods. A theoretical model incorporating these effects is
 proposed but structural estimation is not possible for lack of appropriate
 data. Instead, a reduced form methodology is proposed and employed. The
 empirical results identify positive ethnic neighbourhood effects in high
 school completion and university enrolment for some immigrant groups in
 Australia, in particular first and second generation immigrants from Asia.
 The results indicate that it is not just the size of the ethnic network
 but the 'quality' of the network that is important. 
Journal: Applied Economics 
Pages: 559-572 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217607 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217607 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:559-572




Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Co 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Co 
Author-Name: Patricia Euzent 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Euzent 
Author-Name: Thomas Martin 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Martin 
Title: The export effect of immigration into the USA 
Abstract:
  Much has been written on the connection between migration and
 international trade. Human history provides important examples of
 migrations leading to increased trade activity, with perhaps the most
 well-known example of the 'Overseas Chinese'. This study investigates the
 trade-related importance of Chinese and other immigrants into the USA.
 Previous studies may have underestimated (or overestimated) the
 relationship between trade and migration with nations treated as
 featureless plains rather than as varied landscapes. This study contends
 that an understanding of the immigration-trade relationship can be
 improved upon by examining the specific pattern and destination of
 immigration into specific US states. Using state level export data to 28
 immigrant source countries in 1993, a strong immigration-trade link is
 found, reinforcing conclusions made by previous research using country
 level data. The compelling connection between immigration and trade found
 in this study and others suggests that future changes to US immigration
 policies necessitate that their trade effects also be taken into account. 
Journal: Applied Economics 
Pages: 573-583 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217616 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217616 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:573-583




Template-Type: ReDIF-Article 1.0
Author-Name: Felix Chan 
Author-X-Name-First: Felix 
Author-X-Name-Last: Chan 
Author-Name: Dora Marinova 
Author-X-Name-First: Dora 
Author-X-Name-Last: Marinova 
Author-Name: Michael McAleer 
Author-X-Name-First: Michael 
Author-X-Name-Last: McAleer 
Title: Trends and volatilities in foreign patents registered in the USA 
Abstract:
  This study analyses the patent trends and volatilities for the top 12
 foreign patenting countries in the US market from 1975 to 1997. Japan is
 ranked first in terms of foreign patents registered in the USA, followed
 by Germany. Patent registrations from each of these countries have
 increased steadily over time, but at different rates. Using monthly time
 series data for 1975-1997, the time-varying volatility of Australian,
 Japanese and German patents registered in the USA is examined in detail.
 The asymmetric AR(1)-GJR(1,1) model is found to be suitable for Australia
 and Japan, while the best fitting model for Germany is the symmetric
 AR(1)-GARCH(1,1) model. 
Journal: Applied Economics 
Pages: 585-592 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217625 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217625 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:585-592




Template-Type: ReDIF-Article 1.0
Author-Name: A. Mansur 
Author-X-Name-First: A. 
Author-X-Name-Last: Mansur 
Author-Name: M. Masih 
Author-X-Name-First: M. 
Author-X-Name-Last: Masih 
Author-Name: Rumi Masih 
Author-X-Name-First: Rumi 
Author-X-Name-Last: Masih 
Title: Fractional cointegration, low frequency dynamics and long-run purchasing power parity: an analysis of the Australian dollar over its recent float 
Abstract:
  A relatively new but generalized concept of fractional cointegration is
 applied to shed some light on the validity of purchasing power parity
 (PPP) as a long-run equilibrium condition, by examining the long-run
 relationship between quarterly consumer price indices and bilateral
 exchange rates of the Australian dollar and seven major OECD trading
 partners, over Australia's recent float. The paper demonstrates that
 relaxing the condition that the residual from the cointegration equation
 must be a I(0) process, provides a wide range of cases of parity-reversion
 with processes that are CI(1,d) with 0 &#x3c; d &#x3c; 1. Findings tend to
 suggest that, while standard tests of cointegration fail to support
 cointegration between nominal exchange rates, domestic and foreign prices,
 and thus the empirical favour for PPP as a long-run phenomenon, the
 fractional cointegration analysis permits deviations from equilibrium to
 follow a fractionally integrated process and hence captures a much wider
 class of parity or mean-reversion behaviour. Results are mainly supportive
 of long-run PPP. Furthermore, an analysis of the short-run dynamics
 propelling the long-run relationship (through a VECM) reveals that
 domestic prices are consistently the initial receptor of an exogenous
 shock to the equilibrium and the long-run equilibrium is restored through
 the short-run adjustment of the nominal exchange rates. These findings are
 shown to hold clear policy implications. 
Journal: Applied Economics 
Pages: 593-605 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217634 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217634 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:593-605




Template-Type: ReDIF-Article 1.0
Author-Name: G. Thomas Sav 
Author-X-Name-First: G. Thomas 
Author-X-Name-Last: Sav 
Title: Higher education costs and scale and scope economies 
Abstract:
  Higher education multi-product cost functions are estimated for the
 public and private sectors disaggregated by research, comprehensive,
 baccalaureate, and associate level institutions. The output mix
 incorporates professional school teaching output, in addition to
 undergraduate and graduate teaching and research outputs. Scale and scope
 economies are examined by sector and institutional level, also accounting
 for regional differences. Ray economies are found throughout the private
 sector, but confined to lower level public institutions. Research
 economies are widespread throughout all sector levels. Economies of scope
 prevail among private institutions across levels, but only among
 comprehensive and baccalaureate public colleges. 
Journal: Applied Economics 
Pages: 607-614 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217643 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:607-614




Template-Type: ReDIF-Article 1.0
Author-Name: B. Burcin Yurtoglu 
Author-X-Name-First: B. Burcin 
Author-X-Name-Last: Yurtoglu 
Title: Persistence of firm-level profitability in Turkey 
Abstract:
  The dynamics of company profits for 172 of the largest manufacturing
 firms in Turkey are studied. A time-series analysis is used to estimate
 the long-run projected profits and firm-specific speed of adjustment
 parameters that measures the rate at which short-run rents are eroded.
 While persistent profitability differences across firms are observed,
 there is also a moderately quick erosion of rents except for the most
 highly profitable firms. Firm characteristics rather than industry effects
 account for the differences in permanent profits. Contrary to the
 widespread view that developing countries suffer from uncompetitive
 markets, the results in this paper suggest that the intensity of
 competition in Turkey is no less than in developed countries and similar
 to other developing countries. 
Journal: Applied Economics 
Pages: 615-625 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217652 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217652 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:615-625




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Santin 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Santin 
Author-Name: Francisco Delgado 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Delgado 
Author-Name: Aurelia Valino 
Author-X-Name-First: Aurelia 
Author-X-Name-Last: Valino 
Title: The measurement of technical efficiency: a neural network approach 
Abstract:
  The main purpose of this paper is to provide an introduction to
 artificial neural networks (ANNs) and to review their applications in
 efficiency analysis. Finally, a comparison of efficiency techniques in a
 non-linear production function is carried out. The results suggest that
 ANNs are a promising alternative to traditional approaches, econometric
 models and non-parametric methods such as data envelopment analysis, to
 fit production functions and measure efficiency under non-linear contexts. 
Journal: Applied Economics 
Pages: 627-635 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217661 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217661 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:627-635




Template-Type: ReDIF-Article 1.0
Author-Name: Galip Altinay 
Author-X-Name-First: Galip 
Author-X-Name-Last: Altinay 
Title: On measuring average growth rate 
Abstract:
  This study investigates the difference in average growth rates obtained
 from two commonly used methods. It is analytically shown that the
 difference lies on the dichotomy of constant and time-varying growth that
 can be converted to the dichotomy of trend stationary (TS) and difference
 stationary (DS) processes. For TS processes the two methods would yield
 the same results whereas they differ in case of integrated processes. It
 is also proven that the OLS residuals of a log-linear trend model of an
 integrated series will be always a random walk, in which case the
 differenced model that yields the same result as geometric mean is
 appropriate. The findings are illustrated on the real GDPs of OECD
 countries. 
Journal: Applied Economics 
Pages: 637-644 
Issue: 6 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217670 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217670 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:637-644




Template-Type: ReDIF-Article 1.0
Author-Name: David Forrest 
Author-X-Name-First: David 
Author-X-Name-Last: Forrest 
Author-Name: O. David Gulley 
Author-X-Name-First: O. David 
Author-X-Name-Last: Gulley 
Author-Name: Robert Simmons 
Author-X-Name-First: Robert 
Author-X-Name-Last: Simmons 
Title: Substitution between games in the UK national lottery 
Abstract:
  Virtually all lottery agencies offer a variety of games to suit the
 tastes of players in an attempt to maximize revenue to the government.
 Using the UK National Lottery, which offers a variety of on-line and
 scratchcard games, the extent to which there is substitution or
 complementarity between games is evaluated Employing weekly data from the
 three UKNL lottery games offered over the sample period, it is found that
 own-game characteristics have, by far, the largest influence on sales.
 Some evidence is found suggesting that the lotto and scratchcard games are
 partial substitutes for one another. Thunderball sales appear independent
 of the other two games. Some evidence is also found that the Wednesday and
 Saturday drawings of the lotto game are substitutes. The overall
 conclusion is that Camelot has successfully designed and marketed three
 games that each appeal to bettors in different ways. Thus, sales from one
 game do not seem to seriously cannibalize the sales of the other games,
 with the exceptions noted above. Further, the introduction of another,
 temporary game (Big Draw 2000) contributed to net sales. These results
 also suggest that the games do not appear to be complements to each other,
 indicating that the various arguments as to why the games may be so
 (transactions costs, brand awareness, and the portfolio effect) do not
 appear to be very strong. 
Journal: Applied Economics 
Pages: 645-651 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000222034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222034 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:645-651




Template-Type: ReDIF-Article 1.0
Author-Name: M. Giulietti 
Author-X-Name-First: M. 
Author-X-Name-Last: Giulietti 
Author-Name: S. Mccorriston 
Author-X-Name-First: S. 
Author-X-Name-Last: Mccorriston 
Author-Name: P. Osborne 
Author-X-Name-First: P. 
Author-X-Name-Last: Osborne 
Title: Foreign direct investment in the UK: evidence from a disaggregated panel of the UK food sector 
Abstract:
  Most empirical studies of foreign direct investment (FDI) typically use
 either a cross-sectional (capturing ownership-specific and industry
 determinants) or time-series (capturing the determinants of FDI over time)
 approach. Panel data techniques, however, have the advantage of combining
 both aspects of the data. Using disaggregated panel data for the UK food
 sector - a leading recipient of FDI in the UK - the results in this paper
 highlight the predominance of ownership-specific and industry
 characteristics in determining the presence of foreign-owned firms in this
 sector while macro-economic factors have a more marginal effect. 
Journal: Applied Economics 
Pages: 653-663 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000222043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:653-663




Template-Type: ReDIF-Article 1.0
Author-Name: Gokce Soydemir 
Author-X-Name-First: Gokce 
Author-X-Name-Last: Soydemir 
Author-Name: Elena Bastida 
Author-X-Name-First: Elena 
Author-X-Name-Last: Bastida 
Author-Name: Genaro Gonzalez 
Author-X-Name-First: Genaro 
Author-X-Name-Last: Gonzalez 
Title: The impact of religiosity on self- assessments of health and happiness: evidence from the US Southwest 
Abstract:
  Using an age stratified random sample from an ongoing population-based
 study of Mexican Americans 45 years of age or older living in the
 Southwest this study fexamines the relationship between religiosity and
 self-rated indices of physical health, subjective health status and
 happiness. After estimating a set of binary logit models and controlling
 for individual characteristics such as age and gender, findings indicate
 that religiously involved respondents have a lower probability of
 reporting a health problem than those less or not involved. Further, those
 respondents who attend religious services regularly are more likely to
 assess themselves healthier and happier than those reporting sporadic or
 no attendance. However, when the religious variable is factored into six
 constructs, as the frequency of religious attendance increases the
 happiness measure initially increases to an inflection point then it
 continues to increase but at a slower rate. This result is consistent with
 the argument that those individuals who, on average, attend religious
 services once a week appear to reap the greatest incremental rewards in
 terms of assessments of subjective health and overall happiness. 
Journal: Applied Economics 
Pages: 665-672 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000222052 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222052 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:665-672




Template-Type: ReDIF-Article 1.0
Author-Name: D. R. Kamerschen 
Author-X-Name-First: D. R. 
Author-X-Name-Last: Kamerschen 
Author-Name: J. E. Morgan 
Author-X-Name-First: J. E. 
Author-X-Name-Last: Morgan 
Title: Collusion analysis of the Alabama liquid asphalt market 
Abstract:
  The Alabama liquid asphalt market in the USA is examined over the period
 1961-1978 for evidence of activity consistent with collusion. Some 14
 conditional collusion-facilitating factors that could influence a market's
 tendency towards collusion, not all equally important or necessarily in
 agreement with every other factor, were considered. While some of these
 factors are controversial and can help or harm a collusion, the net
 balance of factors and all of the important factors and evidence pointed
 towards being consistent with a conspiracy. While not examined as
 extensively, it was also found that the circumstantial evidence in the
 market was also consistent with collusion. This article suggests a
 procedural methodology for initiation and resolution of suspected
 collusion for determining appropriate damages. While the precise law and
 damages allowed will be country-specific, the general methodology should
 have wide application in many countries whose laws attempt to foster and
 preserve competition and punish and deter monopoly acquired and maintained
 by acting badly, such as by colluding or exclusionary conduct. 
Journal: Applied Economics 
Pages: 673-693 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000222061 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222061 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:673-693




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Profit 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Profit 
Author-Name: Stefan Sperlich 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Sperlich 
Title: Non-uniformity of job-matching in a transition economy - A nonparametric analysis for the Czech Republic 
Abstract:
  This study explores the properties and development of the matching
 technology in the Czech Republic during the transition to a market
 economy. Nonparametric additive modelling allows us to assess flexible
 functional forms, which comprise for instance CES and trans-log
 specifications. This enables us to evaluate the matching process locally
 for each combination of unemployment and vacancies rather than being
 restricted to global coefficients. Special interest is devoted to analysis
 and economic determinants of regional variation in the returns to scale of
 the matching function. Non-linearities are found in the partial adjustment
 process of unemployment outflows, and a negative coefficient on vacancies
 in some years. Moreover, increasing returns to scale in job-matching are
 found locally. Returns to scale are found to be negatively correlated to
 the share in employment in services and to outmigration, positively
 correlated to the employment share in industry, the unemployment rate and
 various measures of active labour market policies. 
Journal: Applied Economics 
Pages: 695-714 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000222070 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222070 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:695-714




Template-Type: ReDIF-Article 1.0
Author-Name: Hoanjae Park 
Author-X-Name-First: Hoanjae 
Author-X-Name-Last: Park 
Title: On inferring individual behaviour from market behaviour in a predetermined quantities model 
Abstract:
  This article develops the theoretical basis of individual behaviour
 recovered from market behaviour in a predetermined quantities model. As
 applied economists argue, an inverse demand system may be empirically
 sound within the framework of classical demand theory. However, it should
 not lead to the conclusion that the market responses for changes in
 quantity should be used to see welfare effects instead of the individual
 responses by price changes as far as the market is concerned. It shows
 theoretically and empirically how individual responses can be recovered
 from market responses in a predetermined quantities model. It suggests
 that the fundamental results of this article should be used on
 interpreting empirical results from the predetermined quantities models. 
Journal: Applied Economics 
Pages: 715-721 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191084 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191084 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:715-721




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Vaillant 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Vaillant 
Title: Discrimination in matchmaking: evidence from the price policy of a French marriage bureau 
Abstract:
  This article shows how a matchmaking agency may improve the quality of
 serious meetings between individuals seeking long-term relationship,
 thanks to a price discrimination policy. Its filtering is based on
 objective and official characteristics (sex, age and contract's
 environment) and on implicit criteria: the few asked characteristics by
 its clients. 
Journal: Applied Economics 
Pages: 723-729 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000222098 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222098 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:723-729




Template-Type: ReDIF-Article 1.0
Author-Name: Ying Kong 
Author-X-Name-First: Ying 
Author-X-Name-Last: Kong 
Title: The price premium of generic to brand-names and pharmaceutical price index 
Abstract:
  The price premium of generic pharmaceuticals to brand-names is examined
 under different competitive market situations. The result of this study
 shows that the number, market share, and the age of both brand-name and
 generic products have the most explanatory power for explaining the price
 premium. This study further applies this method to a pharmaceutical price
 index in order to explain 'Drug Price Index Perplexities.' 
Journal: Applied Economics 
Pages: 731-737 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000222106 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222106 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:731-737




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Hon 
Author-X-Name-First: Mark 
Author-X-Name-Last: Hon 
Author-Name: Soo-Keong Yong 
Author-X-Name-First: Soo-Keong 
Author-X-Name-Last: Yong 
Title: The price of owning a car: an analysis of auction quota premium in Singapore 
Abstract:
  Faced with dilemmas parallel to countries besieged by road congestions
 and limited land resources, Singapore has chosen to adapt a Vehicle Quota
 System (VQS) whereby car owners are required to bid for a licence in an
 auction before their vehicles are allowed onto the road. In this study,
 the behaviour of VQS auction prices is examined using a structural time
 series approach. For outliers that are not observable from innovations,
 auxiliary residuals with dummy variables are used to supplement the
 analysis. In general, prices exhibit a fairly constant seasonal pattern.
 The inclusion of monthly VQS quotas released by the transport regulatory
 body and the national stock market index is not useful in explaining the
 observed price behaviour. Interestingly, a basic structural model with
 stochastic components seems to fit the data best. 
Journal: Applied Economics 
Pages: 739-751 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000222115 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222115 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:739-751




Template-Type: ReDIF-Article 1.0
Author-Name: Gregor Bruggelambert 
Author-X-Name-First: Gregor 
Author-X-Name-Last: Bruggelambert 
Title: Information and efficiency in political stock markets: using computerized markets to predict election results 
Abstract:
  This study concentrates on four computerized political markets in Germany
 between 1990 and 1998. While this new method for the prediction of
 election events worked quite well in the USA it did not perform as well in
 Germany. Searching for the causes of this distinction it is shown that, in
 contrast to the findings of Forsythe et al. (1992), (i) extraordinary
 profits were achieved less by people who took advantage of other people's
 anomalies than by those people who acquired an advantage from the
 existence of asymmetric information, (ii) the marginal trader hypothesis
 does not hold when applied to German markets, and that (iii) traders
 relied on public opinion polls. It is argued that these distinctions are
 caused by the differences in the German and the US voting systems.
 Additionally, it is shown that to a certain extent (iv) election markets
 were able to predict the contemporary mood of the electorate without the
 help of public opinion polls, (v) first of all the informed traders used
 public opinion polls as a source of information, and (vi) prices
 themselves became a source of information on which expectations were
 based. 
Journal: Applied Economics 
Pages: 753-768 
Issue: 7 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217364 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217364 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:753-768




Template-Type: ReDIF-Article 1.0
Author-Name: Diansheng Dong 
Author-X-Name-First: Diansheng 
Author-X-Name-Last: Dong 
Author-Name: Chanjin Chung 
Author-X-Name-First: Chanjin 
Author-X-Name-Last: Chung 
Author-Name: Harry Kaiser 
Author-X-Name-First: Harry 
Author-X-Name-Last: Kaiser 
Title: Modelling milk purchasing behaviour with a panel data double-hurdle model 
Abstract:
  In this study, the double-hurdle model typically used in cross-sectional
 data is extended to panel data structures. The new double-hurdle model can
 account not only for the censored nature of commodity purchases, but also
 for the dynamics of the purchase process. In this model, a flexible error
 structure is assumed to account for state dependence and
 household-specific heterogeneity. In the empirical application for milk
 purchases, it is found that generic advertising increases the probability
 of market participation as well as the purchase quantity and incidence.
 Temporal dependence is also found in both purchase and participation
 equations. 
Journal: Applied Economics 
Pages: 769-779 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000229505 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229505 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:769-779




Template-Type: ReDIF-Article 1.0
Author-Name: J. Manrique 
Author-X-Name-First: J. 
Author-X-Name-Last: Manrique 
Author-Name: K. Ojah 
Author-X-Name-First: K. 
Author-X-Name-Last: Ojah 
Title: Credits and non-interest rate determinants of loan demand: a Spanish case study 
Abstract:
  This article uses bivariate probit analysis to model the potential
 relationship between the condition of being credit-unconstrained and
 holding loans as well as to ascertain determinants of a household being
 credit-unconstrained and likely holding consumer and real-estate loans. It
 documents that family size, education, permanent and transitory incomes,
 among others, affect Spanish households' desire and capacity to hold
 loans. Furthermore, these factors were found to affect demands for
 real-estate and consumer loans differently. In general, the above and
 other results from this research provide insights that would interest
 credit consumers, credit suppliers, and policy makers in Spain. 
Journal: Applied Economics 
Pages: 781-791 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000229514 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229514 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:781-791




Template-Type: ReDIF-Article 1.0
Author-Name: Diane Bruce Anstine 
Author-X-Name-First: Diane Bruce 
Author-X-Name-Last: Anstine 
Title: The impact of the regulation of the cable television industry: the effect on quality-adjusted cable television prices 
Abstract:
  Between the mid-1980s and early 1990s, cable television rates increased
 substantially. Simple price comparisons over the regulated and deregulated
 eras are difficult as the programming changed simultaneously. Using a
 modified hedonic framework to allow for the lack of competition on the
 supply side of the industry, this paper imputes the price for regulation
 era cable packages using consumers' estimated willingness to pay for
 individual satellite networks during the unregulated period. Then a
 'quality adjusted' price for the cable package offered in 1985 is
 estimated. On average, regulation benefited consumers by keeping prices
 below monopolist's profit maximizing price. 
Journal: Applied Economics 
Pages: 793-802 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000229523 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229523 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:793-802




Template-Type: ReDIF-Article 1.0
Author-Name: Felix Buchel 
Author-X-Name-First: Felix 
Author-X-Name-Last: Buchel 
Author-Name: Antje Mertens 
Author-X-Name-First: Antje 
Author-X-Name-Last: Mertens 
Title: Overeducation, undereducation, and the theory of career mobility 
Abstract:
  The theory of career mobility (Sicherman and Galor, Journal of Political
 Economy, 98(1), 169-92, 1990) claims that wage penalties for overeducated
 workers are compensated by better promotion prospects. Sicherman (Journal
 of Labour Economics, 9(2), 101-22, 1991) was able to confirm this theory
 in an empirical study using panel data. However, the only retest using
 panel data so far (Robst, Eastern Economic Journal, 21, 539-50, 1995)
 produced rather ambiguous results. In the present paper, random effects
 models to analyse relative wage growth are estimated using data from the
 German Socio-Economic Panel. It is found that overeducated workers in
 Germany have markedly lower relative wage growth rates than adequately
 educated workers. The results cast serious doubt on whether the career
 mobility model is able to explain overeducation in Germany. The
 plausibility of the results is supported by the finding that overeducated
 workers have less access to formal and informal on-the-job training, which
 is usually found to be positively correlated with wage growth even when
 controlling for selectivity effects (Pischke, Journal of Population
 Economics, 14, 523-48, 2001). 
Journal: Applied Economics 
Pages: 803-816 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000229532 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229532 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:803-816




Template-Type: ReDIF-Article 1.0
Author-Name: Claus Brand 
Author-X-Name-First: Claus 
Author-X-Name-Last: Brand 
Author-Name: Nuno Cassola 
Author-X-Name-First: Nuno 
Author-X-Name-Last: Cassola 
Title: A money demand system for euro area M3 
Abstract:
  In order to assess the importance of monetary and financial developments
 for key macroeconomic variables in the euro area a money demand system for
 M3 is estimated adopting a structural cointegrating VAR approach. While
 maintaining a good statistical representation of the data, long-run
 relationships are based on economic theory. By using generalized response
 profiles the dynamics of the money demand system is investigated without
 any further identifying assumptions. Error bounds of the profiles are
 derived using bootstrap simulations. 
Journal: Applied Economics 
Pages: 817-838 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000229541 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229541 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:817-838




Template-Type: ReDIF-Article 1.0
Author-Name: John Beghin 
Author-X-Name-First: John 
Author-X-Name-Last: Beghin 
Author-Name: Jean-Christophe Bureau 
Author-X-Name-First: Jean-Christophe 
Author-X-Name-Last: Bureau 
Author-Name: Sophie Drogue 
Author-X-Name-First: Sophie 
Author-X-Name-Last: Drogue 
Title: Calibration of incomplete demand systems in quantitative analysis 
Abstract:
  An easily implemented and flexible calibration technique for partial
 demand systems is introduced, combining recent developments in incomplete
 demand systems and a set of restrictions conditioned on the available
 elasticity estimates. The technique accommodates various degrees of
 knowledge on cross-price elasticities, satisfies curvature restrictions,
 and allows the recovery of an exact welfare measure for policy analysis.
 The technique is illustrated with a partial demand system for food
 consumption in Korea for different states of knowledge on cross-price
 effects. The consumer welfare impact of food and agricultural trade
 liberalization is measured. 
Journal: Applied Economics 
Pages: 839-847 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000229550 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229550 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:839-847




Template-Type: ReDIF-Article 1.0
Author-Name: Renee Fry 
Author-X-Name-First: Renee 
Author-X-Name-Last: Fry 
Title: International demand and liquidity shocks in a SVAR model of the Australian economy 
Abstract:
  A structural vector autoregressive model of the Australian economy that
 allows for international shocks from the USA, Japan as well as world
 commodity prices is specified and estimated for the period 1979-1999. A
 block exogenous structure linking the three countries is imposed. The
 international linkages are modelled using a factor structure to circumvent
 problems from estimating large scale dynamic models. The factors are
 estimated recursively using a Kalman filter and are found to represent
 aggregate demand and liquidity shocks for the USA and Japan respectively.
 The key empirical result is the USA shocks are the dominant source of
 international shocks on the Australian economy with the Japanese economy
 having a dampening effect on the USA shocks. The empirical results also
 show that Australian monetary policy responds to domestic conditions
 rather than international monetary policy. 
Journal: Applied Economics 
Pages: 849-863 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000229569 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229569 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:849-863




Template-Type: ReDIF-Article 1.0
Author-Name: Abdul-Magid Gadad 
Author-X-Name-First: Abdul-Magid 
Author-X-Name-Last: Gadad 
Author-Name: Hardy Thomas 
Author-X-Name-First: Hardy 
Author-X-Name-Last: Thomas 
Title: Do asset sales lead to improvements in operating performance? 
Abstract:
  The changes in operating performance associated with asset sales are
 investigated for a sample of UK firms. Asset sales are followed by an
 improvement of 11% per annum in the level of operating performance
 relative to the pre-sale performance level. Further, improved abnormal
 operating performance is found, which is measured after controlling for
 the performance of the industry, the pre-sale performance of the firm and
 the level of competition in the market for asset sales. The abnormal
 operating performance of the remaining assets improve by 2.4% per annum,
 on average, for three years after the asset sales. This study also finds
 that the market for asset sales is imperfectly competitive. 
Journal: Applied Economics 
Pages: 865-871 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000229578 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229578 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:865-871




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gil-Alana 
Title: Modelling the US real GNP with fractionally integrated techniques 
Abstract:
  The US real GNP is analysed by means of fractionally integrated
 techniques. LM tests proposed by Robinson for testing unit roots and other
 fractionally integrated hypotheses are applied to the quarterly GNP series
 and to its log-transformation. The maximum likelihood estimation procedure
 of Sowell for estimating ARFIMA models is implemented. The results
 indicate that the order of integration of the US real output is much
 higher than one, and thus, the standard approach of taking first
 differences may still produce series with long memory behaviour. 
Journal: Applied Economics 
Pages: 873-879 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000229587 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229587 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:873-879




Template-Type: ReDIF-Article 1.0
Author-Name: Leo Michelis 
Author-X-Name-First: Leo 
Author-X-Name-Last: Michelis 
Author-Name: Athanasios Papadopoulos 
Author-X-Name-First: Athanasios 
Author-X-Name-Last: Papadopoulos 
Author-Name: Gregory Papanikos 
Author-X-Name-First: Gregory 
Author-X-Name-Last: Papanikos 
Title: Regional convergence in Greece in the 1980s: an econometric investigation 
Abstract:
  The purpose of this paper is to evaluate empirically regional convergence
 in Greece during the 1981-1991 period of participation in the European
 Economic Community (EEC). Census data at NUTS III level of regional
 disaggregation are used. A number of structural policies undertaken in the
 1980s, motivated by membership in the EEC, were conducive to regional
 convergence among the 51 NUTS III regions of Greece. Four different
 dependent variables and three model specifications are used to test the
 hypothesis of regional convergence. The overall evidence does not reject
 the idea of regional convergence. The estimated convergence coefficients
 are relatively similar across the three model specifications but they vary
 with the dependent variable used to measure convergence. 
Journal: Applied Economics 
Pages: 881-888 
Issue: 8 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191093 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:881-888




Template-Type: ReDIF-Article 1.0
Author-Name: Walter Enders 
Author-X-Name-First: Walter 
Author-X-Name-Last: Enders 
Author-Name: Kamol Chumrusphonlert 
Author-X-Name-First: Kamol 
Author-X-Name-Last: Chumrusphonlert 
Title: Threshold cointegration and purchasing power parity in the pacific nations 
Abstract:
  The paper uses a threshold cointegration methodology to explore the
 properties of long-run purchasing power parity (PPP) in the Pacific
 nations. Using Japan and the USA as base countries, it is shown that
 long-run PPP holds for most Asian countries but that the adjustment
 mechanism is asymmetric. In contrast to symmetric error-correction models,
 it is found that asymmetric adjustments of nominal exchange rates play an
 important role in eliminating deviations from long-run PPP. 
Journal: Applied Economics 
Pages: 889-896 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233104 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233104 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:889-896




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Marsh 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Marsh 
Author-Name: Ted Schroeder 
Author-X-Name-First: Ted 
Author-X-Name-Last: Schroeder 
Author-Name: James Mintert 
Author-X-Name-First: James 
Author-X-Name-Last: Mintert 
Title: Impacts of meat product recalls on consumer demand in the USA 
Abstract:
  The impact of meat product recall events on consumer demand (beef, pork,
 poultry, and other consumption goods) in the USA is tested empirically.
 Beef, pork, and poultry recall indices are constructed from both the Food
 Safety Inspection Service's meat recall events and from newspaper reports
 over the period 1982-1998. Following previous product recall studies,
 recall indices are incorporated as shift variables in consumers' demand
 functions. Estimating an absolute price version of the Rotterdam demand
 model, findings indicate that Food Safety Inspection Service's meat recall
 events significantly impact demand, and newspaper reports do not.
 Moreover, although elasticities related to recall events are significant
 they are small in magnitude relative to price and income effects. Any
 favourable effects on the demands of meat substitutes for a recall are
 offset by a more general negative effect on meat demand. The general
 negative effect indicates a shift out of meat to non-meat consumption
 goods. 
Journal: Applied Economics 
Pages: 897-909 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233113 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233113 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:897-909




Template-Type: ReDIF-Article 1.0
Author-Name: Yanqin Fan 
Author-X-Name-First: Yanqin 
Author-X-Name-Last: Fan 
Author-Name: Dong Li 
Author-X-Name-First: Dong 
Author-X-Name-Last: Li 
Author-Name: Qi Li 
Author-X-Name-First: Qi 
Author-X-Name-Last: Li 
Title: Nonlinearity in medical expenditures: a new semiparametric approach 
Abstract:
  Research in empirical health economics has found that the relationship
 between medical expenditures and age, income and other variables can be
 highly nonlinear. Moreover, men and women can have quite different medical
 expenditure patterns due to their differences in life expectancy. Thus it
 may be difficult to find an appropriate parametric model to capture the
 highly complicated nonlinearity in medical expenditures, and introducing a
 simple gender dummy variable in a parametric model may not reveal all the
 medical expenditure differences between men and women. This study takes a
 semiparametric approach. In particular, an additive partially linear
 specification is employed to study the relationship between medical
 expenditures and age, income, gender and other individual characteristics.
 Using data from the National Medical Expenditure Survey, the results
 indicate that the semiparametric approach taken in this study is very
 promising. They confirm that medical expenditures are nonlinear in income
 and age, and that men and women have quite different medical expenditure
 patterns. 
Journal: Applied Economics 
Pages: 911-916 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233122 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233122 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:911-916




Template-Type: ReDIF-Article 1.0
Author-Name: Ray Burnham 
Author-X-Name-First: Ray 
Author-X-Name-Last: Burnham 
Author-Name: Robert Feinberg 
Author-X-Name-First: Robert 
Author-X-Name-Last: Feinberg 
Author-Name: Thomas Husted 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Husted 
Title: Central city crime and suburban economic growth 
Abstract:
  This paper explores the relationship between inner-city crime patterns
 and suburban income growth, analysing data on 318 US counties for selected
 metropolitan statistical areas of 32 states within the United States from
 1982 to 1997. The findings suggest that violent crime does seem to have a
 negative impact on close-in suburbs, with a less negative impact farther
 away from the central city (becoming positive at some point). While
 results are not as robust as we had hoped they are consistent with flight
 to further-out suburbs rather than migration to different metropolitan
 areas in response to urban crime. 
Journal: Applied Economics 
Pages: 917-922 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233131 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233131 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:917-922




Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Lima 
Author-X-Name-First: Marcos 
Author-X-Name-Last: Lima 
Author-Name: Marcelo Resende 
Author-X-Name-First: Marcelo 
Author-X-Name-Last: Resende 
Title: Profit margins and business cycles in the Brazilian industry: a panel data study 
Abstract:
  The paper investigates the relationship between profit margins and
 business cycle in the Brazilian industry during the 1992-1998 period,
 taking as reference a dynamic panel data model founded around a
 conjectural variation framework. The empirical results indicate
 procyclical behaviour of profit margins for the aggregate business cycle
 but is less clear in the case of sector-specific business cycle variables.
 Among the most robust results, one can highlight the roles of lagged
 profitability and import intensity and the negligible role of union
 density. Schmalensee in 1985 (American Economic Review 75, pp. 341-51)
 outlined three theoretical interpretations associated with the empirical
 model (classical, revisionist and managerial). Econometric tests on the
 related restrictions do not allow one to exclusively legitimate any of the
 three interpretations. 
Journal: Applied Economics 
Pages: 923-930 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/003684042000233140 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/003684042000233140 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:923-930




Template-Type: ReDIF-Article 1.0
Author-Name: Martha Misas 
Author-X-Name-First: Martha 
Author-X-Name-Last: Misas 
Author-Name: Maria Teresa Ramirez 
Author-X-Name-First: Maria Teresa 
Author-X-Name-Last: Ramirez 
Title: Long-run income and price elasticities of demand for Colombian nontraditional exports: a multivariate cointegration framework 
Abstract:
  A long run income and price elasticities of demand is estimated for
 Colombian nontraditional exports through a multivariate cointegration
 analysis. Based on the combination of cointegration and exogeneity
 concepts and the inclusion of the complete dynamic system, the paper shows
 the existence of a long-run relationship among nontraditional exports,
 relative price and foreign demand, and higher long-run elasticities than
 those provided by the long-run cointegration vector coefficients that are
 usually reported in the trade literature. 
Journal: Applied Economics 
Pages: 931-938 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233159 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233159 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:931-938




Template-Type: ReDIF-Article 1.0
Author-Name: Jia Liu 
Author-X-Name-First: Jia 
Author-X-Name-Last: Liu 
Title: Macroeconomic determinants of corporate failures: evidence from the UK 
Abstract:
  Previous studies on the relationship between macroeconomic aggregates and
 business failures have been restricted to the description of the short-run
 relationships among the variables. This paper uses an error-correction
 model (ECM) to investigate the determinants of UK corporate failures by
 modelling the short-run and long-run behaviours of corporate failure rates
 in relation to macroeconomic phenomena over the period 1966-1999. The
 findings indicate that failure rates are associated with interest rates,
 credit, profits, price, and corporate birth rates both in the short run
 and in the long run. Of these macroeconomic variables, interest rate
 appears to be an important factor influencing failure rates and can be
 used as a feasible policy instrument to reduce the incidence of corporate
 failures. The impact of the Insolvency Act 1986 has also been examined and
 its mitigating effect on corporate failures has been identified. 
Journal: Applied Economics 
Pages: 939-945 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233168 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233168 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:939-945




Template-Type: ReDIF-Article 1.0
Author-Name: Franco Fiordelisi 
Author-X-Name-First: Franco 
Author-X-Name-Last: Fiordelisi 
Author-Name: Philip Molyneux 
Author-X-Name-First: Philip 
Author-X-Name-Last: Molyneux 
Title: Efficiency in the factoring industry 
Abstract:
  The efficiency and productivity in the Italian factoring industry between
 1993 and 1997 is investigated using DEA. The factoring industry is an
 important part of many financial systems and it has established itself as
 a major source of finance and credit management for a growing number of
 companies. However, as far as the authors are aware no studies have
 applied frontier methodologies to examine the efficiency and productivity
 of this industry. This paper focuses on the Italian market, the second
 largest in the world after the UK. The results suggest that there are
 substantial cost savings to be had in the Italian factoring industry: the
 mean cost inefficiency in the Italian factoring industry over the period
 1993-1997 ranged between 14% and 22%. These inefficiencies are mainly
 generated by allocative rather than technical inefficiencies. Scale and
 technical inefficiencies seem to be similar in magnitude and the supposed
 importance of the latter typically found in the banking efficiency
 literature, are not observed in Italian factoring. Firm size does not
 appear to be related to technical, allocative and economic efficiency and
 the hypothesis that ownership structure influences factoring firm
 efficiency could not be rejected. In order to analyse efficiency change
 over time the Malmquist index is used. Total factor productivity was
 decomposed into technical change and efficiency change and the latter was
 further divided into pure efficiency and scale efficiency change.
 Productivity changes were slight over the period 1993-1996, while a
 substantial increase in productivity occurred between 1996 and 1997: the
 latter appears to be the result of a large improvement in the technology
 and a positive scale efficiency change, however, this was slowed down by a
 negative pure efficiency change. 
Journal: Applied Economics 
Pages: 947-959 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036884042000233177 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036884042000233177 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:947-959




Template-Type: ReDIF-Article 1.0
Author-Name: Josep LluIs Carrion-I-Silvestre 
Author-X-Name-First: Josep LluIs 
Author-X-Name-Last: Carrion-I-Silvestre 
Author-Name: Tomas Del Barrio 
Author-X-Name-First: Tomas Del 
Author-X-Name-Last: Barrio 
Author-Name: Enrique Lopez-Bazo 
Author-X-Name-First: Enrique 
Author-X-Name-Last: Lopez-Bazo 
Title: Evidence on the purchasing power parity in a panel of cities 
Abstract:
  Evidence is provided on the PPP hypothesis using a sample of 50 Spanish
 cities for a long time period through the application of panel data unit
 root tests. Although results suggest non-rejection of the PPP, short-run
 deviations - as measured by half-lives - indicate that real factors might
 be causing a slow rate of convergence to a common price index, even in
 highly integrated economies. 
Journal: Applied Economics 
Pages: 961-966 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233186 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233186 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:961-966




Template-Type: ReDIF-Article 1.0
Author-Name: Vuslat Us 
Author-X-Name-First: Vuslat 
Author-X-Name-Last: Us 
Title: Monetary transmission mechanism in Turkey under the monetary conditions index: an alternative policy rule 
Abstract:
  This study analyses monetary transmission mechanism in Turkey using a
 small structural macroeconomic model. The core equations of the model
 consist of aggregate demand, wage-price setting, uncovered interest rate
 parity, foreign sector and a monetary policy rule. The aim of the paper is
 to analyse the disinflation path, the output gap, the output level, the
 exchange rate and the interest rate, and also the output-inflation
 variance frontier of the economy under various scenarios. The first
 scenario assumes that a standard Taylor rule is implemented as the policy
 rule. In the alternative scenario, instead of the standard Taylor rule,
 the MCI, Monetary Conditions Index - combination of the changes in the
 short-term real interest rate and in the real effective exchange rate in a
 single variable - is used as a policy instrument. The results indicate
 that the economy stabilizes much more quickly and shows significantly less
 volatility under this new setting. Therefore, the paper concludes that the
 policymakers should consider using MCI as an instrument when conducting
 monetary policy. 
Journal: Applied Economics 
Pages: 967-976 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233195 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233195 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:967-976




Template-Type: ReDIF-Article 1.0
Author-Name: Nieves lazaro 
Author-X-Name-First: Nieves 
Author-X-Name-Last: lazaro 
Author-Name: Maria Luisa Molto 
Author-X-Name-First: Maria Luisa 
Author-X-Name-Last: Molto 
Author-Name: Rosario Sanchez 
Author-X-Name-First: Rosario 
Author-X-Name-Last: Sanchez 
Title: Paid employment and unpaid caring work in Spain 
Abstract:
  The objective of this paper is to investigate the determinants of unpaid
 time in caring activities, with a special emphasis on the gender
 dimension. Data from the Household Panel Survey for Spain is used to
 estimate an ordered probit model for the hours interval in care of
 children and adult people in need of care. The results show that gender is
 one of the key determinants of the distribution of time in caring. Being
 in paid employment is also an important factor in the time devoted to
 caring. Demographic variables like age, marital status and education are
 also relevant, particularly in the case of women. Finally, cultural habits
 and customs are also important. 
Journal: Applied Economics 
Pages: 977-986 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233203 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:977-986




Template-Type: ReDIF-Article 1.0
Author-Name: Ambrose Leung 
Author-X-Name-First: Ambrose 
Author-X-Name-Last: Leung 
Title: Delinquency, schooling, and work: time allocation decision of youth 
Abstract:
  This paper examines the possible factors that affect the time allocation
 decision of youth between delinquency, schooling, and work. Based on a
 joint decision model, evidence from Montreal shows that influences from
 different social institutions such as family, church, school, peers and
 the workplace are important determinants of how young people decide to
 spend their time on various activities. The findings provided here take
 into account the joint decision nature of the problem and therefore
 provide more precise estimates than those of the existing literature. 
Journal: Applied Economics 
Pages: 987-993 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233212 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233212 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:987-993




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Islam 
Author-X-Name-First: Muhammad 
Author-X-Name-Last: Islam 
Title: The long run relationship between openness and government size: evidence from bounds test 
Abstract:
  The bounds test is applied to determine the existence of a level
 relationship between government size, openness, terms of trade volatility,
 and external risk using time series data from Australia, Canada, England,
 Norway, Sweden, and the USA. Bounds test results show that the existence
 of a long run relationship in the USA and Canada, but not in any of the
 other countries. Long run parameters are estimated using both
 autoregressive distributed lag and FM-OLS procedures. Results vary from
 country to country, with some evidence that government size is
 significantly affected by openness and terms of trade volatility. However,
 contrary to argument and evidence developed using cross-section data,
 empirical evidence presented in this paper show that the size of the
 government has not changed to mitigate the effect of increased income
 risks associated with greater openness. 
Journal: Applied Economics 
Pages: 995-1000 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233221 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233221 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:995-1000




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou 
Author-X-Name-First: Chris 
Author-X-Name-Last: Sakellariou 
Title: The use of quantile regressions in estimating gender wage differentials: a case study of the Philippines 
Abstract:
  Quantile regressions are used to analyse the size, components, and nature
 of the gender-earnings differentials as well as the returns to education
 by gender in the Philippines, over the entire conditional distribution of
 earnings, using data from the 1999 APIS survey. This approach allows more
 focused conclusions about the nature of gender-earnings differentials.
 Incorporating the quantile regression approach to the Oaxaca-Blinder
 decomposition allows the localization of gender discrimination to
 particular quantiles of the earnings distribution and permits more
 targeted policy intervention. 
Journal: Applied Economics 
Pages: 1001-1007 
Issue: 9 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000233230 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233230 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:1001-1007




Template-Type: ReDIF-Article 1.0
Author-Name: Erick Eschker 
Author-X-Name-First: Erick 
Author-X-Name-Last: Eschker 
Author-Name: Stephen Perez 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Perez 
Author-Name: Mark Siegler 
Author-X-Name-First: Mark 
Author-X-Name-Last: Siegler 
Title: The NBA and the influx of international basketball players 
Abstract:
  The determinants of salaries for professional athletes in the National
 Basketball Association (NBA) are examined to investigate how international
 athletes have fared relative to athletes trained in the United States. It
 is found that international basketball players were paid a large premium
 above other players of similar skills and characteristics for the 1996-97
 and 1997-98 seasons, after which the premium disappeared. This temporary
 premium is likely attributable to a 'winner's curse' experienced by NBA
 teams before investing significant resources in scouting and evaluating
 international players. 
Journal: Applied Economics 
Pages: 1009-1020 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246713 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246713 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1009-1020




Template-Type: ReDIF-Article 1.0
Author-Name: David Kamerschen 
Author-X-Name-First: David 
Author-X-Name-Last: Kamerschen 
Title: A mnemonic for the major factors influencing the likelihood of collusion 
Abstract:
  In the typical industrial organization textbook and class, and in the
 courtroom, numerous factors are identified as providing a predisposition
 to a cartel. These factors include cost differences, product
 differentiation, number of firms, technology, growth of the industry,
 elasticity, frequency of sales, number and size distribution of sellers
 and buyers, discount rate, type of competition, vertical integration, cost
 ratio, imports, sealed bidding, social structure and track record, future
 expectations, recognition of interdependence, announcements and exchanges
 of economic information, multimarkets, etc. There are many factors to keep
 in mind. Fortunately, the accumulated theoretical and empirical work on
 collusion suggests that we can, for all practical purposes, focus on the
 factors contained in the mnemonic word CARTEL. The key factors are:
 Concentration, Additional, Revenue, Talk, Entry, Likeness. 
Journal: Applied Economics 
Pages: 1021-1024 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246722 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246722 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1021-1024




Template-Type: ReDIF-Article 1.0
Author-Name: Zbigniew Kominek 
Author-X-Name-First: Zbigniew 
Author-X-Name-Last: Kominek 
Title: Stock markets and industry growth: an Eastern European perspective 
Abstract:
  This paper reviews the recent stock market developments in Poland and the
 Czech Republic and provides a case-study insight into the direction of
 causality between stock market expansion and economic growth. It finds no
 evidence that the relative failure of the Czech security market affected
 the country's economy. It also reports that the largest equity issuers in
 Eastern Europe do not come from industries traditionally considered
 financially dependent. 
Journal: Applied Economics 
Pages: 1025-1030 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246731 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246731 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1025-1030




Template-Type: ReDIF-Article 1.0
Author-Name: Zhaoyong Zhang 
Author-X-Name-First: Zhaoyong 
Author-X-Name-Last: Zhang 
Author-Name: Kiyotaka Sato 
Author-X-Name-First: Kiyotaka 
Author-X-Name-Last: Sato 
Author-Name: Michael McAleer 
Author-X-Name-First: Michael 
Author-X-Name-Last: McAleer 
Title: Is a monetary union feasible for East Asia? 
Abstract:
  The empirical suitability of the East Asian economies for potential
 monetary integration is assessed. The structural vector autoregression
 (VAR) method is employed to identify the underlying shocks using a
 three-variable VAR model across the East Asian economies. The estimates of
 the EEC are used as a benchmark to compare the size of the underlying
 shocks and the speed of adjustment to shocks in both regions to determine
 the feasibility of forming an optimum currency area (OCA) in East Asia.
 The empirical results do not display strong support for forming an OCA in
 the East Asian region. The results do imply, however, that some small
 subregions are potential candidates for OCAs, since their disturbances are
 correlated and small and these economies adjust rapidly to shocks. 
Journal: Applied Economics 
Pages: 1031-1043 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246740 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246740 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1031-1043




Template-Type: ReDIF-Article 1.0
Author-Name: Changkyu Choi 
Author-X-Name-First: Changkyu 
Author-X-Name-Last: Choi 
Title: Foreign direct investment and income convergence 
Abstract:
  The role of foreign direct investment (FDI) in the convergence of income
 level and growth has been investigated by panel data regressions.
 Bilateral FDI data from OECD from 1982 to 1997 is used. Income level and
 growth gaps between source and host countries turn out to decrease as
 bilateral FDI increases. It is also found that geographical closeness and
 common language play an important role in convergence in income level and
 growth. 
Journal: Applied Economics 
Pages: 1045-1049 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246759 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246759 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1045-1049




Template-Type: ReDIF-Article 1.0
Author-Name: Nobuhiro Hosoe 
Author-X-Name-First: Nobuhiro 
Author-X-Name-Last: Hosoe 
Title: Crop failure, price regulation, and emergency imports of Japan's rice sector in 1993 
Abstract:
  In 1993, an extraordinarily cool summer in Japan brought about low rice
 yields, which caused considerable disturbances to the rice markets. Japan
 imported a large amount of rice as an emergency measure. Two controversies
 about Japan's rice policies were raised, particularly in that period. The
 first centred on the effectiveness of the price regulation policies in
 stabilizing rice prices and farmers' incomes. The second involved the
 newspapers' arguments that the emergency imports harmed other countries,
 especially developing countries. These controversies were examined with a
 world trade computable general equilibrium model. 
Journal: Applied Economics 
Pages: 1051-1056 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246768 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246768 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1051-1056




Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yil Choi 
Author-X-Name-First: Yong-Yil 
Author-X-Name-Last: Choi 
Title: The macroeconomic impact of foreign labour influx into the industrialized nation state and the complementary policies 
Abstract:
  This paper makes a numerical assessment on the macroeconomic impact of
 foreign labor influx into the industrialized nation state allowing free
 trade in goods but imposing an immigration quota on labor, and then
 explores the complementary policies for the impact of foreign labor
 influx. One of the main findings is that immigration itself brings welfare
 gains only if prices are flexible, but a skill-biased intake policy can
 bring a much larger welfare gain. The complementary policy options to
 boost welfare gains by immigration increase are monetary expansion,
 adopting foreign components more, and influencing foreign demand for
 intermediate goods indirectly by inviting foreign direct investment. For
 these policies to cope, the destination country should try to correct the
 market structure so that prices can be flexible. 
Journal: Applied Economics 
Pages: 1057-1063 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246777 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246777 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1057-1063




Template-Type: ReDIF-Article 1.0
Author-Name: Benoit Dervaux 
Author-X-Name-First: Benoit 
Author-X-Name-Last: Dervaux 
Author-Name: Gary Ferrier 
Author-X-Name-First: Gary 
Author-X-Name-Last: Ferrier 
Author-Name: Herve Leleu 
Author-X-Name-First: Herve 
Author-X-Name-Last: Leleu 
Author-Name: Vivian Valdmanis 
Author-X-Name-First: Vivian 
Author-X-Name-Last: Valdmanis 
Title: Comparing French and US hospital technologies: a directional input distance function approach 
Abstract:
  French and US hospital technologies are compared using directional input
 distance functions. The aggregation properties of the directional distance
 function allow comparison of hospital industry-level performance as well
 as standard firm-level performance with regard to productive efficiency.
 In addition, the underlying constituents of efficiency - in the short run,
 congestion and technical inefficiency, and in the long run, scale
 inefficiency - are analysed by decomposing the overall measure. By virtue
 of using the directional distance function, it is also possible to obtain
 an estimate of a lower bound on allocative inefficiency. It is found that
 French and US hospitals use quite different technologies. Long run scale
 inefficiencies cause most of the French hospitals' inefficiency, while
 short run technical inefficiency is the main source of overall productive
 inefficiency in the US hospitals. 
Journal: Applied Economics 
Pages: 1065-1081 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246786 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1065-1081




Template-Type: ReDIF-Article 1.0
Author-Name: Shandre Mugan Thangavelu 
Author-X-Name-First: Shandre Mugan 
Author-X-Name-Last: Thangavelu 
Author-Name: Gulasekaran Rajaguru 
Author-X-Name-First: Gulasekaran 
Author-X-Name-Last: Rajaguru 
Title: Is there an export or import-led productivity growth in rapidly developing Asian countries? a multivariate VAR analysis 
Abstract:
  In contrast to cross-country studies, the paper investigates the
 relationships between trade and labour productivity for nine rapidly
 developing Asian countries in a time-series framework using a vector
 error-correction model. Independent tests on the long-run and short-run
 relationship between trade variables of exports and imports and
 productivity are conducted. The results suggest that trade has an
 important impact on productivity and output growth in the economy, however
 it is imports that provide the important 'virtuous' link between trade and
 output growth. The results indicate that exports and imports have
 qualitatively different impacts on labour productivity. The long-run
 result shows that there is no causal effect from exports to labour
 productivity growth for Hong Kong, Indonesia, Japan, Taiwan and Thailand;
 thereby suggesting that there is no export-led productivity growth in
 these countries. However, significant causal effects were found from
 imports to productivity growth, suggesting import-led productivity growth
 in India, Indonesia, Malaysia, Philippines, Singapore and Taiwan. In
 addition, the results indicate that imports tend to have greater positive
 impact on productivity growth in the long run. 
Journal: Applied Economics 
Pages: 1083-1093 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246795 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246795 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1083-1093




Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Ahamada 
Author-X-Name-First: Ibrahim 
Author-X-Name-Last: Ahamada 
Author-Name: Jamel Jouini 
Author-X-Name-First: Jamel 
Author-X-Name-Last: Jouini 
Author-Name: Mohamed Boutahar 
Author-X-Name-First: Mohamed 
Author-X-Name-Last: Boutahar 
Title: Detecting multiple breaks in time series covariance structure: a non-parametric approach based on the evolutionary spectral density 
Abstract:
  This article estimates the number of breaks and their locations in the
 covariance structure of a series based on the evolutionary spectral
 density and uses some standard information criteria. The adopted approach
 is non-parametric and does not privilege a priori any modelling of the
 series. One carries out a Monte Carlo analysis and an empirical
 illustration using the daily return series of exchange rate euro/US dollar
 to support the relevance of the theory and to produce additional insights.
 The simulation results are globally adequate and show that the criteria
 having heavy penalty are more accurate in the selection of the number of
 breaks. The empirical results indicate that the covariance structure of
 the return series considerably varies between 30 March 2000 and 6 April
 2001. The unconditional volatility appears non-constant over this
 interval. 
Journal: Applied Economics 
Pages: 1095-1101 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246803 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246803 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1095-1101




Template-Type: ReDIF-Article 1.0
Author-Name: Yih-Chyi Chuang 
Author-X-Name-First: Yih-Chyi 
Author-X-Name-Last: Chuang 
Author-Name: Pi-Fum Hsu 
Author-X-Name-First: Pi-Fum 
Author-X-Name-Last: Hsu 
Title: FDI, trade, and spillover efficiency: evidence from China's manufacturing sector 
Abstract:
  Using firm data from the 1995 Third Industrial Census of China, this
 paper finds that the presence of foreign ownership has a positive and
 significant effect on domestic firms' productivity. Moreover, trading with
 more advanced countries helps China gain access to new technology and
 information, which improves its productivity and enables it to compete in
 international markets. It is found that China's imports from OECD and the
 four Asian Tigers, and exports to OECD have positive effects on domestic
 firms' productivity. By dividing industries into high-technology-gap and
 low-technology-gap groups, it is found that the spillover effects of FDI
 are larger for the low-technology-gap group than for the
 high-technology-gap group. However, the estimation results of the
 trade-induced technology spillover effect support the technology-gap
 learning theory and the significance of importing appropriate technology. 
Journal: Applied Economics 
Pages: 1103-1115 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246812 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246812 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1103-1115




Template-Type: ReDIF-Article 1.0
Author-Name: Milena Pavlova 
Author-X-Name-First: Milena 
Author-X-Name-Last: Pavlova 
Author-Name: Wim Groot 
Author-X-Name-First: Wim 
Author-X-Name-Last: Groot 
Author-Name: Godefridus Van Merode 
Author-X-Name-First: Godefridus 
Author-X-Name-Last: Van Merode 
Title: Willingness and ability of Bulgarian consumers to pay for improved public health care services 
Abstract:
  An application of the contingent valuation method to the willingness and
 ability of Bulgarian consumers to pay for public health care services is
 presented. The study uses data from a household survey conducted in
 May-June 2000. The willingness and ability to pay for outpatient,
 inpatient and dental services is investigated. A combination of interval
 checklist and open-ended questions are used to elicit the
 willingness-to-pay amounts. The impact of the sociodemographic
 characteristics on the responses is examined by a generalized Tobit
 regression. Based on the regression equation, the welfare effects of
 various fee levels are simulated. 
Journal: Applied Economics 
Pages: 1117-1130 
Issue: 10 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000246821 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246821 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1117-1130




Template-Type: ReDIF-Article 1.0
Author-Name: Antony Davies 
Author-X-Name-First: Antony 
Author-X-Name-Last: Davies 
Title: Computational intermediation and the evolution of computation as a commodity 
Abstract:
  The consumer who purchases computational power ultimately purchases a
 reduction in the time interval between the initiation and the completion
 of work. This paper looks at computation as a commodity and the nascent
 industry of computational intermediation, and proposes a model for the
 market for computational power as distinct from the market for computers.
 Some interesting results emerge. The model implies that the demand for
 computation is discontinuous and that there is a lower limit to the
 quantity of computation consumers will demand that is independent of the
 price of power. The model identifies a range of computational powers that
 could be supplied by computational intermediaries but which will not be
 supplied by computer manufacturers, and suggests a model for pricing
 computation. 
Journal: Applied Economics 
Pages: 1131-1142 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000247334 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247334 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1131-1142




Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Co 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Co 
Author-Name: John List 
Author-X-Name-First: John 
Author-X-Name-Last: List 
Title: Is foreign direct investment attracted to 'knowledge creators'? 
Abstract:
  The effect of 'knowledge creators' on location patterns of new foreign
 plants entering the USA from 1986 to 1993 is analysed. The empirical
 results from a conditional logit model suggest a link exists between
 knowledge bases, measured by patent counts, and the location decisions of
 foreign plants. In the limit, these results imply that a 1% increase in
 patent counts is associated with an increase in the probability of
 attracting a new foreign plant by as much as 1.874%. 
Journal: Applied Economics 
Pages: 1143-1149 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000176810 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000176810 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1143-1149




Template-Type: ReDIF-Article 1.0
Author-Name: Victor Matheson 
Author-X-Name-First: Victor 
Author-X-Name-Last: Matheson 
Author-Name: Robert Baade 
Author-X-Name-First: Robert 
Author-X-Name-Last: Baade 
Title: 'Death effect' on collectible prices 
Abstract:
  It has been widely observed that the price of art or celebrity
 memorabilia rises around the time of the artist or figure's death.
 Previous authors attribute this ' death effect ' primarily to expectations
 on the part of collectors concerning the future supply of collectibles
 relating to the public figure as in the case of a durable goods
 monopolist. The observations of the sports memorabilia market suggest that
 the increase in prices is instead due to a ' nostalgia effect ' as a
 result of the media attention that surrounds the death of a prominent
 public figure. 
Journal: Applied Economics 
Pages: 1151-1155 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000247343 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247343 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1151-1155




Template-Type: ReDIF-Article 1.0
Author-Name: An-Sing Chen 
Author-X-Name-First: An-Sing 
Author-X-Name-Last: Chen 
Author-Name: James Wuh Lin 
Author-X-Name-First: James Wuh 
Author-X-Name-Last: Lin 
Title: Cointegration and detectable linear and nonlinear causality: analysis using the London Metal Exchange lead contract 
Abstract:
  This study applies linear and nonlinear Granger causality tests to
 examine the dynamic relation between London Metal Exchange (LME) cash
 prices and three possible predictors. The analysis uses matched quarterly
 inventory, UK Treasury bill interest rates, futures prices and cash prices
 for the commodity lead traded on the LME. The effects of cointegration on
 both linear and nonlinear Granger causality tests is also examined. When
 cointegration is not modelled, evidence is found of both linear and
 nonlinear causality between cash prices and analysed predictor variables.
 However, after controlling for cointegration, evidence of significant
 nonlinear causality is no longer found. These results contribute to the
 empirical literature on commodity price forecasting by highlighting the
 relationship between cointegration and detectable linear and nonlinear
 causality. The importance of interest rate and inventory as well as
 futures price in forecasting cash prices is also illustrated. Failure to
 detect significant nonlinearity after controlling for cointegration may
 also go some way to explaining the reason for the disappointing
 forecasting performances of many nonlinear models in the general finance
 literature. It may be that the variables are correct, but the functional
 form is overly complex and a standard VAR or VECM may often apply. 
Journal: Applied Economics 
Pages: 1157-1167 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000247352 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247352 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1157-1167




Template-Type: ReDIF-Article 1.0
Author-Name: Jan van Dalen 
Author-X-Name-First: Jan 
Author-X-Name-Last: van Dalen 
Author-Name: Ben Bode 
Author-X-Name-First: Ben 
Author-X-Name-Last: Bode 
Title: Quality-corrected price indices: the case of the Dutch new passenger car market, 1990-1999 
Abstract:
  Market dynamics and technological developments constitute a major
 challenge to the proper measurement of the price evolution of durable
 goods. In this study, hedonic methods are used to estimate
 quality-corrected price indices of new passenger cars in the Netherlands,
 1990-1999. Use is made of a huge set of price, quantity and quality
 information about 11,000 car models, obtained from different sources.
 During the observation period the nominal price level of all available car
 models increased about 20% on average, while the shares of car models with
 airbags, tinted glass and power steering increased from almost nothing to
 about 90%. Matched model price indices and the official CPI for new
 passenger cars, which partially account for quality-adjustments, estimate
 the price increase to be equal to 10.6-14.2% respectively 11.2% for the
 1990-1999 period. By contrast, the hedonic Fisher-like price indices based
 on the preferred annually estimated brand-weighted semi-log hedonic model,
 lead to price changes varying from + 2.3% to - 3.4% (depending on the
 choice of weight variable, and the use of fixed or varying reference
 periods in the index construction) and thereby fall 8.9 to 14.6 percentage
 points below the official figures, over the period 1990-1999. The pooled
 adjacent-years model holds an intermediate position with a predicted
 quality-corrected price decrease of 1.8% over the observation period,
 which is 13.0 points below the CPI. 
Journal: Applied Economics 
Pages: 1169-1197 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000247361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1169-1197




Template-Type: ReDIF-Article 1.0
Author-Name: Franz Hahn 
Author-X-Name-First: Franz 
Author-X-Name-Last: Hahn 
Title: Long-run homogeneity of labour demand. Panel evidence from OECD countries 
Abstract:
  This study makes an attempt to examine the long-run relationship between
 the key labour market parameters of employment, aggregate output, real
 product wages and labour-augmenting technical progress for a sample of 21
 OECD countries covering the period from 1970 to 2000. A new panel error
 correction technique is applied, which allows one to constrain the
 long-run coefficients to be identical across the countries while letting
 the short-run coefficients which govern the dynamics and the error
 variances differ freely, respectively. Thus, this estimation approach
 assumes that institutional and cultural differences, albeit causing
 short-term deviations of labour demand behaviour across countries, leave
 the long-run structure of the labour markets unaffected. That is to say,
 the long-run equilibrium relationship between the key labour market
 variables is taken to be similar across the OECD economies. The empirical
 analysis shows that the long-run relationship between the key labour
 market parameters is equal across the OECD countries. However, adjustment
 speed of actual employment to the equilibrium is much higher in countries
 with flexible labour markets, such as the USA and UK, than in countries
 with rigid labour markets, such as Germany and Austria. 
Journal: Applied Economics 
Pages: 1199-1203 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000247370 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247370 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1199-1203




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gil-Alana 
Title: Semiparametric estimation of the fractional differencing parameter in the UK industrial production index 
Abstract:
  The order of integration of the industrial production index in the UK is
 investigated by means of semiparametric techniques in the time and in the
 frequency domain. Several methods like the R\S statistic, along with
 others proposed by Robinson in a number of articles are applied to various
 differenced transformations of the log of the series. These methods
 perform poorly when using the time domain approaches, however, when using
 the frequency domain, the results are fairly conclusive. Evidence is found
 of a unit root at the zero frequency in the logged series whether or not
 the series is monthly seasonally differenced first. 
Journal: Applied Economics 
Pages: 1205-1217 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000247389 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247389 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1205-1217




Template-Type: ReDIF-Article 1.0
Author-Name: M. Matilla-Garcia 
Author-X-Name-First: M. 
Author-X-Name-Last: Matilla-Garcia 
Author-Name: P. Sanz 
Author-X-Name-First: P. 
Author-X-Name-Last: Sanz 
Author-Name: F. J. Vazquez 
Author-X-Name-First: F. J. 
Author-X-Name-Last: Vazquez 
Title: Dimension estimation with the BDS-G statistic 
Abstract:
  The issue of time delay has been controversial among the specialized
 literature. In fact, there exist some contrasted methods to choose it. It
 is the case that even though they are investigated for chaotic series,
 they fail to detect which series come from a deterministic and chaotic
 system. In this study a new procedure for selecting the delay time which
 produces good results about the estimation of the correlation dimension in
 chaotic series is introduced. The method is based upon a statistic
 (BDS-G), rooted on the integral correlation function, that takes advantage
 of the information contained in the data in terms of dependence, and it
 uses it to choose proper delay times and embedding dimensions. The results
 for the studied series, even for small data sets, are satisfactory. 
Journal: Applied Economics 
Pages: 1219-1223 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000247398 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247398 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1219-1223




Template-Type: ReDIF-Article 1.0
Author-Name: Jose E. Bosca 
Author-X-Name-First: Jose E. 
Author-X-Name-Last: Bosca 
Author-Name: Antonio Cutanda 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Cutanda 
Author-Name: Javier Escriba 
Author-X-Name-First: Javier 
Author-X-Name-Last: Escriba 
Title: Rates of return to public and private capital: new estimates using nonlinear Euler equations 
Abstract:
  Results obtained by Otto and Voss show that public investment undertaken
 in Australia over recent decades satisfies conditions for intertemporal
 efficiency. This paper confirms this result, although lower output
 elasticities and rates of return to private and public capital are
 obtained. The reason for these results is that the earlier work is
 extended by estimating the parameter related to the elasticity of
 intertemporal substitution that was earlier restricted to a specific
 value. In fact, it is shown here that it is possible to obtain an
 economically reasonable (and statistically significant) estimate of this
 parameter by assuming that the stochastic discount factor for the
 representative firm is the same as for the representative consumer and
 equal to a gross real interest rate. 
Journal: Applied Economics 
Pages: 1225-1232 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191129 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191129 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1225-1232




Template-Type: ReDIF-Article 1.0
Author-Name: Morteza Haghiri 
Author-X-Name-First: Morteza 
Author-X-Name-Last: Haghiri 
Author-Name: James Nolan 
Author-X-Name-First: James 
Author-X-Name-Last: Nolan 
Author-Name: Kien Tran 
Author-X-Name-First: Kien 
Author-X-Name-Last: Tran 
Title: Assessing the impact of economic liberalization across countries: a comparison of dairy industry efficiency in Canada and the USA 
Abstract:
  This paper examines and compares the technical efficiency measures of
 Ontario and New York dairy producers for the period 1992 to 1998. A
 nonparametric stochastic frontier model is introduced to estimate
 technical efficiency. The backfitting algorithm of Breiman and Friedman is
 used to estimate the frontier. Empirical results indicate that during the
 period of study, New York dairy farmers produced milk more efficiently
 than Ontario dairy producers, but the magnitude of the difference was
 small. The estimated mean technical efficiency for the former group is
 0.602 as compared to 0.532 for the latter. The results also indicated that
 over time, dairy farms in both regions improved their level of technical
 efficiency. Furthermore, no correlation was found between farm size and
 estimated technical efficiency. 
Journal: Applied Economics 
Pages: 1233-1243 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000247406 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247406 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1233-1243




Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Hsin Huang 
Author-X-Name-First: Tai-Hsin 
Author-X-Name-Last: Huang 
Author-Name: Mei-Hui Wang 
Author-X-Name-First: Mei-Hui 
Author-X-Name-Last: Wang 
Title: Estimation of scale and scope economies in multiproduct banking: evidence from the Fourier flexible functional form with panel data 
Abstract:
  An empirical study is conducted on scale and scope economies for Taiwan's
 banking industry with panel data using a Fourier flexible cost function
 developed by Gallant and a translog cost function, both of which take
 economic efficiency into account. It is found that the Fourier form is
 more appropriate than the traditional translog form in fitting the data,
 and that various efficiency measures computed using the Fourier function
 are compatible with each other, while those computed using the translog
 function are not. The Fourier evidence shows that sample banks continue to
 enjoy economies of scale, and exhibit scope diseconomies, which indicates
 that greater product diversification can reduce banking costs through
 product-mix economies. Banks may benefit from further diversifying their
 line of financial services. 
Journal: Applied Economics 
Pages: 1245-1253 
Issue: 11 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000247415 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247415 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1245-1253




Template-Type: ReDIF-Article 1.0
Author-Name: Laure Latruffe 
Author-X-Name-First: Laure 
Author-X-Name-Last: Latruffe 
Author-Name: Kelvin Balcombe 
Author-X-Name-First: Kelvin 
Author-X-Name-Last: Balcombe 
Author-Name: Sophia Davidova 
Author-X-Name-First: Sophia 
Author-X-Name-Last: Davidova 
Author-Name: Katarzyna Zawalinska 
Author-X-Name-First: Katarzyna 
Author-X-Name-Last: Zawalinska 
Title: Determinants of technical efficiency of crop and livestock farms in Poland 
Abstract:
  Poland, one of the candidate countries for European Union membership, is
 currently experiencing acute structural problems within its agriculture
 sector. This article analyses technical efficiency and its determinants
 for a panel of individual farms in Poland specialized in crop and
 livestock production in 2000. Technical efficiency is estimated with
 stochastic frontier analysis (SFA) and confidence intervals are
 constructed. Determinants of inefficiency are also evaluated. The SFA
 results are compared with results using Data Envelopment Analysis (DEA).
 On average, livestock farms are more technically efficient than crop
 farms. For both specializations, the size-efficiency relationship is
 positive, that is large farms are more efficient. The SFA findings are
 generally supported by the DEA results. Soil quality and the degree of
 integration with downstream markets are highly important determinants of
 efficiency. The use of factor markets (land and labour) is important for
 crop farms, while livestock farms can rely on family labour and own land.
 Also, education is a constraint to efficiency particularly for crop farms. 
Journal: Applied Economics 
Pages: 1255-1263 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000176793 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000176793 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1255-1263




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gil-Alana 
Title: Seasonal fractional components in macroeconomic time series 
Abstract:
  Seasonal fractional models are shown in this article to be alternative
 credible ways of modelling the seasonal component in macroeconomic time
 series. A testing procedure that allows one to test different orders of
 integration at zero and at each of the seasonal frequencies is described.
 This procedure is then applied to the Italian consumption and income
 series, the results being very sensitive to the way of modelling the I(0)
 disturbances. 
Journal: Applied Economics 
Pages: 1265-1279 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000260456 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000260456 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1265-1279




Template-Type: ReDIF-Article 1.0
Author-Name: Hsiu-Yun Lee 
Author-X-Name-First: Hsiu-Yun 
Author-X-Name-Last: Lee 
Author-Name: Jyh-Lin Wu 
Author-X-Name-First: Jyh-Lin 
Author-X-Name-Last: Wu 
Title: Convergence of interest rates around the Pacific Rim 
Abstract:
  This article applies the panel data unit root tests provided by Im,
 Pesaran and Shin (Discussion paper, 1997) to examine the interest rate
 convergence of small-open Asian countries with major financial centres.
 With monthly data from 1988:1 to 1997:6, it was found that the nominal
 interest rates of these countries converge to the US rates rather than to
 Japan's. This finding is consistent with the view that the monetary
 authorities of non-Japan Asian economies pegged their exchange rates
 overwhelmingly to the dollar rather than the yen before the financial
 crisis of 1997. 
Journal: Applied Economics 
Pages: 1281-1288 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000238929 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000238929 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1281-1288




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: Thomas Wahl 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Wahl 
Title: Welfare impacts of Indian apple trade policies 
Abstract:
  In April 2000, India eliminated the quantitative import restriction of
 apples and instituted a trade barrier in the form of lower ad valorem
 tariffs. This study examines the impacts of Indian trade policies on the
 apple market by reviewing the government policies, discussing mathematical
 and graphical analyses of trade policies, presenting estimated equations
 of demand, supply, and excess supply, and providing solutions of prices,
 quantities, and welfare impacts under autarky, free trade, and tariff
 regimes. Given the total population of more than one billion and a vast
 middle income population, and economic reforms and resulting income
 growth, India has a considerable potential to increase its apple
 consumption. Our study shows that under free trade, India will consume
 3008 thousand metric tonnes (TMT) of apples of which 2237 TMT will be
 imported. Also, free trade will increase the total welfare by Rs 29 512
 million. These large gains suggest that India should liberalize apple
 import barriers and move toward free trade. 
Journal: Applied Economics 
Pages: 1289-1294 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191886 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1289-1294




Template-Type: ReDIF-Article 1.0
Author-Name: Qiming Liu 
Author-X-Name-First: Qiming 
Author-X-Name-Last: Liu 
Author-Name: Barry Reilly 
Author-X-Name-First: Barry 
Author-X-Name-Last: Reilly 
Title: Income transfers of Chinese rural migrants: some empirical evidence from Jinan 
Abstract:
  This paper explores the determinants of migrant remittances to rural
 households using data on male migrant workers drawn from the Jinan
 Municipality in Shandong province in the summer of 1995. The majority of
 migrants are found to retain close links with their rural households with
 85% remitting some income in the 12 months preceding the survey date. The
 transfers accounted for over a third of urban labour earnings. A number of
 models are used to undertake the estimation of remittance functions. No
 evidence of altruistic behaviour is uncovered and evidence for exchange
 and coinsurance theories is mixed. Labour earnings proved the most robust
 determinant of the level of remittance and the remittance/wage elasticity
 calculated is found to be at the top end of the range of estimates
 obtained in the literature. 
Journal: Applied Economics 
Pages: 1295-1313 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191101 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191101 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1295-1313




Template-Type: ReDIF-Article 1.0
Author-Name: Yair Eilat 
Author-X-Name-First: Yair 
Author-X-Name-Last: Eilat 
Author-Name: Liran Einav 
Author-X-Name-First: Liran 
Author-X-Name-Last: Einav 
Title: Determinants of international tourism: a three-dimensional panel data analysis 
Abstract:
  International tourism is a fast growing industry generating half a
 trillion dollars in annual revenues and accounting for almost 10% of total
 international trade, and almost half of total trade in services. Yet, it
 has so far failed to receive the attention it deserves from mainstream
 economics. This paper attempts to provide an initial understanding of the
 determinants of international tourism. This paper claims that
 international tourism, as other forms of trade in services, is driven by
 unique factors of production, and may be better dealt with in a single
 industry study rather than in a general equilibrium trade model. In order
 to understand these determinants the world is viewed as a market of
 differentiated products, and a discrete choice estimation technique is
 applied to a large three-dimensional data set of tourist flows. It is
 shown that a relatively simple estimation technique, combined with a rich
 data set, can deliver reasonable substitution patterns. It is found, among
 other things, that political risk is very important for tourism, and that
 exchange rates matter mainly for tourism to developed countries. These
 have exchange rate elasticity of about one. 
Journal: Applied Economics 
Pages: 1315-1327 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/000368404000180897 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404000180897 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1315-1327




Template-Type: ReDIF-Article 1.0
Author-Name: Roland Maude-Griffin 
Author-X-Name-First: Roland 
Author-X-Name-Last: Maude-Griffin 
Author-Name: Roger Feldman 
Author-X-Name-First: Roger 
Author-X-Name-Last: Feldman 
Author-Name: Douglas Wholey 
Author-X-Name-First: Douglas 
Author-X-Name-Last: Wholey 
Title: Nash bargaining model of HMO premiums 
Abstract:
  This paper estimates a model of commercial HMO premiums based on Nash's
 axiomatic approach to bargaining between HMOs and employers. The
 bargaining models incorporate variables that measure the 'power' of the
 parties to affect the division of potential gains from a contract. It is
 found that an increase in the number of competing HMOs increases the
 employer's bargaining power and leads to lower premiums, especially for
 for-profit HMOs. It is also found that employers' bargaining power over
 non-profit HMOs is positively related to the ratio of the HMO's
 administrative expenses/total expenses. 
Journal: Applied Economics 
Pages: 1329-1336 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000238938 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000238938 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1329-1336




Template-Type: ReDIF-Article 1.0
Author-Name: Amir Alizadeh 
Author-X-Name-First: Amir 
Author-X-Name-Last: Alizadeh 
Author-Name: Manolis Kavussanos 
Author-X-Name-First: Manolis 
Author-X-Name-Last: Kavussanos 
Author-Name: David Menachof 
Author-X-Name-First: David 
Author-X-Name-Last: Menachof 
Title: Hedging against bunker price fluctuations using petroleum futures contracts: constant versus time-varying hedge ratios 
Abstract:
  The effectiveness of hedging marine bunker price fluctuations in
 Rotterdam, Singapore and Houston is examined using different crude oil and
 petroleum future contracts traded at the New York Mercantile Exchange
 (NYMEX) and the International Petroleum Exchange (IPE) in London. Using
 both constant and dynamic hedge ratios, it is found that in and
 out-of-sample hedging effectiveness is different across regional bunker
 markets. The most effective futures instruments for out of sample hedging
 of spot bunker prices in Rotterdam and Singapore are the IPE crude oil
 futures, while for Houston it is the gas oil futures. Differences in
 hedging effectiveness across regional markets are attributed to the
 varying regional supply and demand factors in each market. In comparison
 to other markets, the cross-market hedging effectiveness investigated in
 the bunker market is low. 
Journal: Applied Economics 
Pages: 1337-1353 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000176801 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000176801 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1337-1353




Template-Type: ReDIF-Article 1.0
Author-Name: Sabine Bockem 
Author-X-Name-First: Sabine 
Author-X-Name-Last: Bockem 
Title: Cartel formation and oligopoly structure: a new assessment of the crude oil market 
Abstract:
  While economic theorists regard OPEC as a perfect example of a
 long-lasting cartel, energy economists strongly deny such view. Applying
 the ideas of New Empirical Industrial Organization, a market description
 is derived. Cartel theory and empirical evidence fit together well. Stable
 long-lasting cartels can be explained only for subclasses of market models
 and exactly such type of model is obtained here. A variety of different
 market models is tested. OPEC and the market for crude oil is best
 described by a price-leader model. 
Journal: Applied Economics 
Pages: 1355-1369 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191093 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1355-1369




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Jenkins 
Author-X-Name-First: Michael 
Author-X-Name-Last: Jenkins 
Title: Purchasing power parity and the role of traded goods: evidence from EU states 
Abstract:
  In this paper the debate on purchasing power parity (PPP) is considered
 by providing results with disaggregated price data from European
 countries. The disaggregation of the price data is important because it
 allows for the consideration of goods that are likely tradable (e.g.,
 fruits) with goods that are not tradable (e.g., hotel rooms). The European
 focus is important because these results are able to shed light on the
 effect of the type of exchange rate regime, member of exchange rate
 mechanism (ERM) or not. 
Journal: Applied Economics 
Pages: 1371-1375 
Issue: 12 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191110 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191110 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1371-1375




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Artatrana Ratha 
Author-X-Name-First: Artatrana 
Author-X-Name-Last: Ratha 
Title: The J-Curve: a literature review 
Abstract:
  Due to lag structure, currency devaluation is said to worsen the trade
 balance first and improve it later resulting in a pattern that resemble
 the letter J, hence the J-Curve phenomenon. Since its introduction by
 Magee in 1973 (Brooking Papers on Economic Activity, 1, pp. 303-25), a
 large number of studies have attempted to test the phenomenon using
 different techniques and different model specifications. The results are
 at best ambiguous and deserve to be collected together for the future
 generation of researchers and graduate students. This paper fills such a
 vacuum in the literature by reviewing the J-Curve related empirical
 papers. 
Journal: Applied Economics 
Pages: 1377-1398 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000201794 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201794 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1377-1398




Template-Type: ReDIF-Article 1.0
Author-Name: Santiago Alvarez-Garcia 
Author-X-Name-First: Santiago 
Author-X-Name-Last: Alvarez-Garcia 
Author-Name: Juan Prieto-Rodriguez 
Author-X-Name-First: Juan 
Author-X-Name-Last: Prieto-Rodriguez 
Author-Name: Rafael Salas 
Author-X-Name-First: Rafael 
Author-X-Name-Last: Salas 
Title: The evolution of income inequality in the European Union during the period 1993-1996 
Abstract:
  The objective of this work is to analyse the income inequality in the 15
 EU countries during the convergence process to the Monetary Union, using
 the information contained in the European Community Household Panel,
 corresponding to the four first waves. Using the inverse second order
 stochastic dominance concept, an ordering of these countries has been
 carried out. Furthermore, this ranking allows one to determine if the
 differences among EU country members have increased or decreased during
 this particular period. Whether the inequality of income has diminished
 within and between countries over time was studied. Gini's generalized
 family indices proposed by Donaldson and Weymark (Journal of Economic
 Theory 22: 67-86, 1980 and 29: 353-8, 1983) and Yitzhaki (International
 Economic Review 24: 617-28, 1983) have been used. This allows one to test
 the sensitivity of the results obtained to different degrees of inequality
 aversion and to different equivalence scales, taking into account
 household sizes. 
Journal: Applied Economics 
Pages: 1399-1408 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000206997 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000206997 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1399-1408




Template-Type: ReDIF-Article 1.0
Author-Name: Joon-Ho Hahm 
Author-X-Name-First: Joon-Ho 
Author-X-Name-Last: Hahm 
Title: Interest rate and exchange rate exposures of banking institutions in pre-crisis Korea 
Abstract:
  This study empirically investigates interest rate and exchange rate
 exposures of banking institutions in pre-crisis Korea. Using the
 sensitivity of stock returns as a measure of the exposure, it is shown
 that Korean commercial banks and merchant banking corporations had been
 significantly exposed to both interest rate and exchange rate risks, and
 that the subsequent profitability of commercial banks was significantly
 associated with the degree of pre-crisis exposure. The evidence suggests
 that, along with the negative exposure of banking institutions, the sharp
 depreciation of the Korean won and high interest rates at the end of 1997
 further deteriorated the banking sector's capital adequacy worsening the
 financial crisis. The Korean case highlights the importance of upgrading
 financial supervision and risk management practices as a precondition for
 successful financial liberalization. 
Journal: Applied Economics 
Pages: 1409-1419 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000206979 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000206979 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1409-1419




Template-Type: ReDIF-Article 1.0
Author-Name: Dilip Dutta 
Author-X-Name-First: Dilip 
Author-X-Name-Last: Dutta 
Author-Name: Nasiruddin Ahmed 
Author-X-Name-First: Nasiruddin 
Author-X-Name-Last: Ahmed 
Title: Trade liberalization and industrial growth in Pakistan: a cointegration analysis 
Abstract:
  Using the framework of an endogenous growth model, this study empirically
 analyses the relationship between trade policies and industrial growth in
 Pakistan during the period 1973-1995. The cointegration and error
 correction modelling approaches have been applied. The empirical results
 suggest that there exists a unique long-run relationship among the
 aggregate growth function of industrial value added and its major
 determinants of the real capital stock, the labour force, real exports,
 the import tariff collection rate and the secondary school enrolment
 ratio. The short-term dynamic behaviour of Pakistan's growth function of
 industrial value added has been investigated by estimating an error
 correction model in which the error correction term has been found to be
 correctly signed and statistically significant. 
Journal: Applied Economics 
Pages: 1421-1429 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000206951 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000206951 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1421-1429




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Nell 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Nell 
Title: The structuralist theory of imported inflation: an application to South Africa 
Abstract:
  This study emphasizes the importance of identifying the origin of
 inflation in the present context of inflation targeting by many emerging
 market and transition economies. The analysis shows, based on South
 African data, how structural (supply) and demand inflation can be
 distinguished. The results indicate that South Africa's inflation
 experience between 1973q1 and 1998q4 is characterized by two monetary
 regimes. During the first regime (1973q1-1984q4) the long-run cause of
 inflation is demand-pull. The second regime (1987q1-1998q4) represents
 major changes to structural ('imported') and cost-push inflation. The
 two-year period 1985-1986 signifies structural change from the first to
 the second regime. Moreover, the results in the second regime remain
 robust when the inflation model is subjected to 'new' out-of-sample data
 until 2001q2. Evidence of structural ('imported') inflation in the second
 regime suggests that inflation should not entirely be squeezed out of the
 system nor should it necessarily be kept at the lowest possible level,
 because some inflation may be regarded as the natural by-product of the
 growth and development process. South Africa's inflation experience points
 to several lessons for existing (and potential) emerging market and
 transition economies with some form of inflation targeting. 
Journal: Applied Economics 
Pages: 1431-1444 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000204467 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000204467 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1431-1444




Template-Type: ReDIF-Article 1.0
Author-Name: Seung-Jun Kwak 
Author-X-Name-First: Seung-Jun 
Author-X-Name-Last: Kwak 
Author-Name: Seung-Hoon Yoo 
Author-X-Name-First: Seung-Hoon 
Author-X-Name-Last: Yoo 
Author-Name: Chan-Jun Kim 
Author-X-Name-First: Chan-Jun 
Author-X-Name-Last: Kim 
Title: Measuring the economic benefits of recycling: the case of the waste agricultural film in Korea 
Abstract:
  Recently increase of the waste agricultural film (WAF) raises the loss of
 the resources and produces the environmental damage in Korea. The Korean
 government has established the basic plan for increasing the recycling
 rate and abating the environmental damage. The objective of this paper is
 to estimate the economic benefits attached to the policy of recycling the
 WAF using contingent valuation method, aiming to provide policy-makers
 with useful information to make an informed public decision in recycling
 the WAF. The overall results show that the respondents well accepted the
 contingent market and would be willing to pay a significant amount for the
 proposed policy of recycling the WAF. The mean willingness to pay and the
 truncated mean willingness to pay per household were 4641 Korean won (US$
 3.6) and 5730 Korean won (US$ 4.4), respectively. Total economic benefits
 for the population amounted to approximately 14.33 billion Korean won (US$
 11.02 million) per year. This quantitative information can be used in
 cost-benefit analysis of the policy of recycling the WAF. 
Journal: Applied Economics 
Pages: 1445-1453 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000206988 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000206988 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1445-1453




Template-Type: ReDIF-Article 1.0
Author-Name: B. Gill de Albornoz Noguer 
Author-X-Name-First: B. Gill de Albornoz 
Author-X-Name-Last: Noguer 
Author-Name: M. Illueca Munoz 
Author-X-Name-First: M. Illueca 
Author-X-Name-Last: Munoz 
Title: Comparing abnormal accruals models: a non-parametric approach 
Abstract:
  The purpose of this study is to compare the distribution of discretionary
 accruals produced by the Standard and Modified Jones models using a
 non-parametric approach. Evidence is provided that discretionary accruals
 produced by the two models have an almost identical distribution.
 Moreover, it is found that whether or not an intercept is included in the
 model produces more intra-distribution mobility than the use of the
 standard or the modified version of the model. 
Journal: Applied Economics 
Pages: 1455-1460 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000204449 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000204449 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1455-1460




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Adam 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Adam 
Author-Name: Michael Goujon 
Author-X-Name-First: Michael 
Author-X-Name-Last: Goujon 
Author-Name: Sylviane Guillaumont Jeanneney 
Author-X-Name-First: Sylviane Guillaumont 
Author-X-Name-Last: Jeanneney 
Title: The transactions demand for money in the presence of currency substitution: evidence from Vietnam 
Abstract:
  Currency substitution - the use of foreign money to finance transactions
 between domestic residents - is widespread in low income and transition
 economies. Traditionally, however, empirical models of the demand for
 money tend to concentrate on the portfolio motive for holding foreign
 currency, while maintaining the assumption that the income elasticity of
 demand for domestic money is invariant to the degree of currency
 substitution. A simple re-specification of the demand for money is offered
 which more accurately reflects the process of currency substitution by
 allowing for a variable income elasticity of demand for domestic money.
 This specification is estimated for Vietnam in the 1990s. Using a standard
 cointegration framework evidence is found for currency substitution only
 in the long-run but well-defined wealth effects operating in the
 short-run. 
Journal: Applied Economics 
Pages: 1461-1470 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/000368404200029839 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200029839 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1461-1470




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Soderlind 
Author-X-Name-First: Paul 
Author-X-Name-Last: Soderlind 
Title: What if the Fed had been an inflation nutter? 
Abstract:
  A structural rational expectations model of US monetary policy is used to
 make a counterfactual experiment of a strongly inflation averse Federal
 Reserve Bank. Results for US interest rates, output, and inflation over
 1965-1999 are discussed. 
Journal: Applied Economics 
Pages: 1471-1473 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000201820 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201820 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1471-1473




Template-Type: ReDIF-Article 1.0
Author-Name: Mike Smet 
Author-X-Name-First: Mike 
Author-X-Name-Last: Smet 
Title: Multi-product costs and standby capacity derived from queuing theory: the case of Belgian hospitals 
Abstract:
  Empirical hospital cost function studies can be divided into two
 categories: studies estimating traditional multi-product cost functions
 and studies including demand uncertainty (assuming that hospitals provide
 standby capacity to cope with uncertain demand and stressing that the
 relationship between the uncertain demand, excess capacity and costs
 should be investigated). Most studies include (the inverse of) the
 occupancy rate in a relatively basic cost function. The first contribution
 of this paper is to incorporate an indicator of reserve capacity into a
 genuine multi-product cost function. The second contribution is to propose
 an alternative indicator to proxy the reserve margin. The often used
 occupancy rate has an important shortcoming: the same occupancy rate can
 hide different turnaway probabilities and waiting times, obscuring the
 true degree of reservation quality. Since turnaway probabilities and
 waiting times are typical queuing theory indicators, an indicator for
 average waiting time (derived from queuing theory) is incorporated into a
 proper multi-product cost function to capture the degree of standby
 capacity into a proper multi-product cost function. The study uses 1997
 data on Belgian general care hospitals to estimate a multi-product cost
 function and calculate cost elasticities, marginal costs and the degree of
 economies of scale. The results further show that providing standby
 capacity has a significant impact on total costs. 
Journal: Applied Economics 
Pages: 1475-1487 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000201811 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201811 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1475-1487




Template-Type: ReDIF-Article 1.0
Author-Name: Diana Burton 
Author-X-Name-First: Diana 
Author-X-Name-Last: Burton 
Author-Name: H. Alan Love 
Author-X-Name-First: H. Alan 
Author-X-Name-Last: Love 
Author-Name: Gordon Rausser 
Author-X-Name-First: Gordon 
Author-X-Name-Last: Rausser 
Title: Estimating statistical properties of political economic decisions 
Abstract:
  Revelation of criteria implicit in setting policy is addressed in a
 political economic framework that includes identification and estimation
 of unknown parameters in the presence of multiple sources of uncertainty.
 Policy formation is viewed as an optimization process under which the
 government maximizes a criterion function subject to market constraints. A
 method for estimating political criterion function weights and their
 associated standard errors over multiple time periods is presented. The
 approach is illustrated with an empirical example from Japanese rice and
 wheat trade policy. 
Journal: Applied Economics 
Pages: 1489-1499 
Issue: 13 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000204458 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000204458 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1489-1499




Template-Type: ReDIF-Article 1.0
Author-Name: Colin Carter 
Author-X-Name-First: Colin 
Author-X-Name-Last: Carter 
Author-Name: Xianghong Li 
Author-X-Name-First: Xianghong 
Author-X-Name-Last: Li 
Title: Changing trade patterns in major OECD countries 
Abstract:
  Disaggregated trade data are used to examine changing trade patterns for
 five developed economic regions: the USA, the European Union, Australia,
 Canada and Japan. This study covers the 1980-1997 time period, during
 which international trade for most goods faced less border protection.
 Changing trade patterns are found for the USA, Japan, and the EU, while
 persistent trade patterns are observed for Australia and Canada.
 Classifying goods into four groups, trade patterns found in manufactured
 goods were the most dynamic, and trade in bulk agricultural goods the most
 persistent. 
Journal: Applied Economics 
Pages: 1501-1511 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217913 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217913 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1501-1511




Template-Type: ReDIF-Article 1.0
Author-Name: David Sahn 
Author-X-Name-First: David 
Author-X-Name-Last: Sahn 
Author-Name: Ari Gerstle 
Author-X-Name-First: Ari 
Author-X-Name-Last: Gerstle 
Title: Child allowances and allocative decisions in Romanian households 
Abstract:
  In this paper it is tested whether increasing child allowances will
 affect the intra-household allocation of consumption, measured by child
 and adult goods, holding total household resources constant. The analysis
 is based on household survey data collected in Romania, where cash
 payments are made to families according to the number and age of children.
 Selectivity is controled for since there is the potential for
 self-selection bias in terms of the level of child allowances received.
 The findings suggest that holding total household resources constant,
 child allowances increase demand for child goods and calories and reduce
 demand for adult goods. 
Journal: Applied Economics 
Pages: 1513-1521 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217986 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217986 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1513-1521




Template-Type: ReDIF-Article 1.0
Author-Name: George Ford 
Author-X-Name-First: George 
Author-X-Name-Last: Ford 
Author-Name: John Jackson 
Author-X-Name-First: John 
Author-X-Name-Last: Jackson 
Title: Demand elasticities for international message telephone service 
Abstract:
  Using a point-to-point model of toll demand, this paper provides
 estimates of own-price demand elasticities for international message
 telephone service. The study improves on previous studies by using more
 recent data and endogenizing price. Consistent with earlier studies, the
 demand for IMTS is found to be price inelastic, about -0.28 on average, in
 the short-run and near unitary elastic, -1.04 on average, in the long run.
 Both the level and the elasticity of demand are found to be positively
 related to the size of the telephone network. The own-price elasticity of
 demand for a select group of countries is provided. 
Journal: Applied Economics 
Pages: 1523-1527 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000269439 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000269439 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1523-1527




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Rafferty 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Rafferty 
Author-Name: Mark Funk 
Author-X-Name-First: Mark 
Author-X-Name-Last: Funk 
Title: Demand shocks and firm-financed R&D expenditures 
Abstract:
  Business cycles might affect firms' ability and incentive to perform R&D.
 Firms finance most R&D activities out of cash flow so when cash flow
 decreases the funds available for R&D also decreases. This limits the
 ability of firms to perform R&D, potentially leading to reduced R&D
 expenditures during recessions. However, business cycles also influence
 the incentive to perform R&D. The opportunity cost of funds devoted to R&D
 falls during recessions since the return on production will likely be
 lower than during an expansion. During recessions, this provides firms
 with an incentive to redistribute an existing pool of funds away from
 production and towards R&D projects. This paper tests whether the business
 cycle influences the incentive and ability of firms to engage in R&D
 activities, in particular examining whether the response is symmetric
 across the business cycle. 
Journal: Applied Economics 
Pages: 1529-1536 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217959 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217959 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1529-1536




Template-Type: ReDIF-Article 1.0
Author-Name: Francis Greene 
Author-X-Name-First: Francis 
Author-X-Name-Last: Greene 
Author-Name: Kevin Mole 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Mole 
Title: Tracking Euro preparations amongst UK SMEs 
Abstract:
  This paper tracks levels of Euro preparations by UK SMEs with trade links
 with the Euro currency area using two surveys of the same cross-sectional
 dataset. The first study was conducted soon after the initial launch of
 the Euro in 1999. The second study, using the same SMEs, sought to see how
 Euro preparations had changed by 2002 following the introduction of Euro
 notes and coins. At the univariate level, the results showed that the
 proportion of SMEs that were totally prepared increased from 31% to 44.3%
 whilst the proportion not prepared has also increased from 8.9% to 12.2%.
 The multivariate results show that directly trading manufacturers with a
 parent in the Euro area or who are seeking to acquire another company are
 more likely to have partially prepared for the Euro, which suggests a
 compliant ('just another foreign currency') rather than a strategic
 approach to the Euro. Trade links do not explain all the differences:
 incorporated manufacturing firms are significantly more likely to be
 partially prepared and less likely to be completely unprepared, indicating
 a possible impact of firm capabilities and sectoral differences. Firms
 looking to acquire others was the only significant business strategy
 variable. 
Journal: Applied Economics 
Pages: 1537-1546 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217968 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217968 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1537-1546




Template-Type: ReDIF-Article 1.0
Author-Name: Nowak-Lehmann Felicitas 
Author-X-Name-First: Nowak-Lehmann 
Author-X-Name-Last: Felicitas 
Title: Different approaches of modelling reaction lags: how do Chilean manufacturing exports react to movements of the real exchange rate? 
Abstract:
  This study examines the relationship between export supply and the real
 exchange rate using annual Chilean data for the period 1960-1996. The
 hypotheses to be tested are first, that the real exchange rate does matter
 for the supply of exports - contrary to studies relying on quarterly data
 - and second, that the impact of a real depreciation only ceases to be
 positive and significant after about two-three years. Four different
 distributed lag models were considered as potentially adequate and useful
 to depict the impact of the real exchange rate over time. Even though all
 four models assumed different underlying lag structures, they all point to
 the importance of maintaining a competitive real exchange rate over time.
 The transfer function model is particularly well suited in shaping any lag
 structure in that it is not presumptive in form. 
Journal: Applied Economics 
Pages: 1547-1560 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000269448 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000269448 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1547-1560




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Castaner 
Author-X-Name-First: Juan 
Author-X-Name-Last: Castaner 
Author-Name: Jorge Onrubia 
Author-X-Name-First: Jorge 
Author-X-Name-Last: Onrubia 
Author-Name: Raquel Paredes 
Author-X-Name-First: Raquel 
Author-X-Name-Last: Paredes 
Title: Evaluating social welfare and redistributive effects of Spanish personal income tax reform 
Abstract:
  Spain has recently concluded a process of wide-ranging reform of its
 personal income tax (IRPF), in force since 1992. The new IRPF is
 applicable from 1999 onward. The aim of this article is to analyse the
 implications of this tax reform for the distribution of personal income,
 and additionally to provide a comparative evaluation in terms of social
 welfare of both taxes. Empirical analysis is performed by a simulation
 exercise, employing the microdata contained in the Institute of Fiscal
 Studies' IRPF Panel of Taxpayers. The analysis shows that the new IRPF
 induces a redistributive effect slightly lower than the old IRPF. The
 greater redistributive potential of the progressive structure of the new
 tax proves to be insufficient to compensate for the contrary effect caused
 by reduction in the level of tax liability. However, this new tax
 unambigously permits, in an inequality-adverse society, a higher level of
 social welfare than that attained by the old tax. 
Journal: Applied Economics 
Pages: 1561-1568 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/003684042000269457 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/003684042000269457 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1561-1568




Template-Type: ReDIF-Article 1.0
Author-Name: Lata Gangadharan 
Author-X-Name-First: Lata 
Author-X-Name-Last: Gangadharan 
Title: Analysis of prices in tradable emission markets: an empirical study of the regional clean air incentives market in Los Angeles 
Abstract:
  The Regional Clean Air Incentives Market is an emissions trading
 programme, which is expected to help in reducing oxides of nitrogen and
 sulphur from stationary sources in the Los Angeles area. This paper uses
 econometric techniques to determine the factors that can explain the
 development of the price of emission permits. By controlling for various
 characteristics of the trades, the regression results allow one to isolate
 the impact of each factor and conduct a detailed analysis of the
 implications of this factor on price. The results show that the price of
 permits is affected by institutional factors such as the trading rules and
 regulations governing the permit programme. The permits are priced higher
 in the coastal zone, higher for trades recorded in 1997 as compared to
 1994 or 1995 and are affected by the trader category. Brokers are involved
 in well over half of the trades and have acquired a substantial inventory
 of permits. Facilities buying from brokers pay higher prices than if they
 buy from another facility. The price of trades beyond 2003 is higher than
 for current trades, which could be indicative of expectations of high
 growth rates in the Los Angeles region or due to expectation of more
 stringent regulations in the future. 
Journal: Applied Economics 
Pages: 1569-1582 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000269466 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000269466 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1569-1582




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gil-Alana 
Title: Forecasting the real output using fractionally integrated techniques 
Abstract:
  The annual structure of the real GDP in the UK, France, Germany and Italy
 is examined by means of fractionally integrated techniques. Using a
 version of a testing procedure due to Robinson (Journal of the American
 Statistical Association, 84, 1420-37, 1994), it is shown that the series
 can be specified in terms of I(d ) statistical models with d higher than
 1. Thus, the series are nonstationary and non-mean-reverting. The
 forecasting properties of the selected models for each country are also
 examined. 
Journal: Applied Economics 
Pages: 1583-1589 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000269475 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000269475 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1583-1589




Template-Type: ReDIF-Article 1.0
Author-Name: Tony Wirjanto 
Author-X-Name-First: Tony 
Author-X-Name-Last: Wirjanto 
Title: Exploring consumption-based asset pricing model with stochastic-trend forcing processes 
Abstract:
  Using Canadian data, the consumption-based asset pricing model is
 studied, defined in terms of nondurable and durable goods consumption. A
 two-stage estimation procedure is used, which takes account of the
 presence of common stochastic trends in the forcing processes. This method
 yields more reasonable estimates of the preference parameters than the
 previous studies did, and the asset-pricing equation is not rejected by
 the data. Moreover, the preference specification adopted in this paper
 allows a number of useful economic information to be obtained. The
 additive separability assumption and the Cobb-Douglas functional form of
 the utility function are ruled complements in the sense of Edgeworth and
 Pareto. 
Journal: Applied Economics 
Pages: 1591-1597 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217940 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1591-1597




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Author-Name: Abul Shamsuddin 
Author-X-Name-First: Abul 
Author-X-Name-Last: Shamsuddin 
Title: Expectation formation mechanisms, profitability of foreign exchange trading and exchange rate volatility 
Abstract:
  An attempt is made to identify the expectation formation mechanism
 dominating the foreign exchange market and to demonstrate that exchange
 rate volatility can be attributed to the heterogeneity of traders with
 respect to expectation formation. The criterion used to identify the
 dominance of a particular mechanism is the profitability of trading based
 on that mechanism. It is concluded that mixed and extrapolative
 expectations are the dominant mechanisms, that market participants follow
 some sort of a herd behaviour, and that they pay attention to the
 expectations of other participants. It is also found that the
 heterogeneity of market participants with respect to expectation formation
 goes a long way towards explaining volatility. 
Journal: Applied Economics 
Pages: 1599-1606 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217977 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217977 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1599-1606




Template-Type: ReDIF-Article 1.0
Author-Name: Sonila Beliu 
Author-X-Name-First: Sonila 
Author-X-Name-Last: Beliu 
Author-Name: Matthew Higgins 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Higgins 
Title: Fractional cointegration analysis of EU convergence 
Abstract:
  Traditional cointegration tests do not provide strong evidence of
 convergence between EU countries. In this study, fractional cointegration
 analysis is used to test for convergence between EU members. Fractional
 cointegration between inflation and between long-term interest rates is
 found. The results indicate that there is nominal convergence, but that
 the equilibrium errors display long memory. Fractional cointegration
 analysis gives no evidence of real convergence in output. 
Journal: Applied Economics 
Pages: 1607-1611 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000217931 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217931 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1607-1611




Template-Type: ReDIF-Article 1.0
Author-Name: Ryan Donnar 
Author-X-Name-First: Ryan 
Author-X-Name-Last: Donnar 
Author-Name: Keith Jakee 
Author-X-Name-First: Keith 
Author-X-Name-Last: Jakee 
Title: Australian beer wars and pub demand: how vertical restraints improved the drinking experience 
Abstract:
  Recently, Australia's two largest brewers, Carlton and United Breweries
 and Lion Nathan, have been aggressively competing for market share in the
 state of Victoria. Among other strategies, the two breweries have
 implemented vertical restraints in the form of 'extensive' agreements with
 retailers and the outright purchase of pubs. A key outcome of these
 purchases and agreements is the renovation of many pubs as brewers attempt
 to attract increasingly sophisticated drinkers. This paper attempts to
 quantify the value of these renovations and measure their associated
 impact on consumers, relying on insights from the hedonic literature. A
 simple, but novel approach, is used to estimate the implicit price of the
 pub environment and the effects of renovations on that price. 
Journal: Applied Economics 
Pages: 1613-1622 
Issue: 14 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191877 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191877 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1613-1622




Template-Type: ReDIF-Article 1.0
Author-Name: Theodore Keeler 
Author-X-Name-First: Theodore 
Author-X-Name-Last: Keeler 
Author-Name: Teh-wei Hu 
Author-X-Name-First: Teh-wei 
Author-X-Name-Last: Hu 
Author-Name: Michael Ong 
Author-X-Name-First: Michael 
Author-X-Name-Last: Ong 
Author-Name: Hai-Yen Sung 
Author-X-Name-First: Hai-Yen 
Author-X-Name-Last: Sung 
Title: The US National Tobacco Settlement: the effects of advertising and price changes on cigarette consumption 
Abstract:
  This paper provides an econometric analysis of the effects of cigarette
 price and advertising changes stemming from the United States Tobacco
 Settlement of 1998. This is done by estimation of a demand function for
 cigarettes, based on data from both before and after the Settlement. The
 model is estimated using monthly time series data for the period
 1990-2000. Results show that the increase in cigarette prices stemming
 from the Settlement reduced per capita cigarette consumption in the USA by
 8.3%. However, the cigarette companies also increased advertising in the
 years immediately preceding and following the Settlement. This study
 estimates that this increased advertising partially offsets the effects of
 the higher prices, increasing cigarette consumption by 2.7 to 4.7%, and
 hence blunting the effects of the price increase by 33-57%. 
Journal: Applied Economics 
Pages: 1623-1629 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000266829 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266829 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1623-1629




Template-Type: ReDIF-Article 1.0
Author-Name: Tom Kompas 
Author-X-Name-First: Tom 
Author-X-Name-Last: Kompas 
Author-Name: Tuong Nhu Che 
Author-X-Name-First: Tuong Nhu 
Author-X-Name-Last: Che 
Author-Name: R. Quentin Grafton 
Author-X-Name-First: R. Quentin 
Author-X-Name-Last: Grafton 
Title: Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery 
Abstract:
  This paper provides the first ex post estimates of the effects of input
 controls on technical efficiency in a fishery. Using individual vessel
 data from the northern prawn fishery of Australia for the years 1990-1996
 and 1994-2000, stochastic production frontiers are estimated to analyse
 the efficiency impacts of input controls on engine and vessel size. The
 results indicate that technical efficiency is increasing in a measure of
 vessel size and engine capacity that was controlled by the regulator from
 1985 to 2001, and decreasing in an unregulated input, gear headrope
 length. The study shows that fishers have substituted from regulated to
 unregulated inputs over the period 1990-2000 and technical efficiency has
 declined coincident with increasing restrictions on vessel size and engine
 capacity. The decline in technical efficiency indicates that the goal of
 the regulator to increase economic efficiency has not been realized. 
Journal: Applied Economics 
Pages: 1631-1641 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000218561 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1631-1641




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Gomez-Plana 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Gomez-Plana 
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Title: A spatial equilibrium analysis of trade policy reforms on the world wheat market  
Abstract:
  Since a few countries produce most of the world's wheat, and consumption
 is widespread across the world, wheat is one of the most commonly traded
 agricultural commodities. In recent years, the wheat market has been going
 through difficult phases as wheat prices are depressed. The fall in wheat
 prices is attributed to a supply glut and restrictive trade barriers. This
 study develops a large-scale spatial equilibrium trade model for wheat to
 analyse the effects of removing trade barriers (tariffs and subsidies) on
 each country's/region's price, supply, demand, trade, welfare, and
 bilateral trade flows. The results show that trade liberalization leads to
 an increase (decrease) in prices in the exporting (importing) countries.
 Production and exports increase in the exporting country, and consumption
 and imports increase in the importing country. Consequently, the volume of
 trade also increases. The welfare of most countries rises, and thus, world
 welfare also rises. 
Journal: Applied Economics 
Pages: 1643-1648 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000266838 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1643-1648




Template-Type: ReDIF-Article 1.0
Author-Name: Anusua Datta 
Author-X-Name-First: Anusua 
Author-X-Name-Last: Datta 
Author-Name: Sumit Agarwal 
Author-X-Name-First: Sumit 
Author-X-Name-Last: Agarwal 
Title: Telecommunications and economic growth: a panel data approach 
Abstract:
  Telecommunication investment is increasingly identified as one with a
 strong potential to improve economic productivity and growth. The
 objective of this study is to investigate the long run relationship
 between telecommunications infrastructure and economic growth, using data
 from 22 OECD countries. A dynamic panel data method is used for
 estimation, which corrects for omitted variables bias of single equation
 cross-section regression. The 'fixed-effects' specification accounts for
 country specific differences in aggregate production functions. The
 results show a significant and positive correlation between
 telecommunications infrastructure and growth, after controlling for a
 number of other factors. 
Journal: Applied Economics 
Pages: 1649-1654 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000218552 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1649-1654




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Ford Brown 
Author-X-Name-First: Ford 
Author-X-Name-Last: Brown 
Title: Kalman filter approach to estimate the demand for international reserves 
Abstract:
  A few studies have provided empirical support for the fact that the
 demand for international reserves experienced structural instability in
 1973 and 1979 due to a change in exchange rate system and oil price
 shocks. Thus, under the current managed float due to exchange rate and oil
 price fluctuations, coefficient estimates could be time dependent. After
 showing that indeed, estimated coefficients are time dependent, the Kalman
 filter estimation method is employed and the reserve demand function for
 19 industrial countries estimated. The Kalman filter approach incorporates
 the time-varying properties of coefficients estimates. 
Journal: Applied Economics 
Pages: 1655-1668 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000218543 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218543 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1655-1668




Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Mishra 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Mishra 
Author-Name: Charles Moss 
Author-X-Name-First: Charles 
Author-X-Name-Last: Moss 
Author-Name: Kenneth Erickson 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Erickson 
Title: Valuing farmland with multiple quasi-fixed inputs 
Abstract:
  This study examines the impact of multiple quasi-fixed assets on the
 imputed returns to farmland. The results indicate that the presence of
 additional quasi-fixed assets causes the true shadow value of farmland to
 deviate from its imputed value. The results also indicate that when the
 potential existence of multiple quasi-fixed assets is explicitly modelled,
 the shadow value of farmland approaches reported cash rental values. 
Journal: Applied Economics 
Pages: 1669-1675 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000266847 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266847 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1669-1675




Template-Type: ReDIF-Article 1.0
Author-Name: J. S. Ferris 
Author-X-Name-First: J. S. 
Author-X-Name-Last: Ferris 
Author-Name: E. G. West 
Author-X-Name-First: E. G. 
Author-X-Name-Last: West 
Title: Economies of scale, school violence and the optimal size of schools 
Abstract:
  This article argues that policy in relation to education has relied too
 extensively on the more easily measured costs of production to support a
 common conclusion of economies of scale in school and/or district size. It
 argues that there are external costs that increase with size but that can
 be measured less easily that offset this case. This would imply that the
 tendency within the education profession to advocate ever-larger school
 sizes is premature at best. To make the case, it models the choice of
 school size to emphasize that costs, such as school violence, born by both
 students and their parents but not (necessarily) by education
 administrators may result in school sizes that are too big from the
 perspective of school users. The second and third parts of the article
 introduces evidence to suggest that school violence is one of these
 external costs. 
Journal: Applied Economics 
Pages: 1677-1684 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000266856 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266856 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1677-1684




Template-Type: ReDIF-Article 1.0
Author-Name: Aamer Abu-Qarn 
Author-X-Name-First: Aamer 
Author-X-Name-Last: Abu-Qarn 
Author-Name: Suleiman Abu-Bader 
Author-X-Name-First: Suleiman 
Author-X-Name-Last: Abu-Bader 
Title: The validity of the ELG hypothesis in the MENA region: cointegration and error correction model analysis 
Abstract:
  The export-led growth (ELG) hypothesis is examined for nine Middle East
 and North Africa (MENA) countries in three-variable vector autoregressive
 and error correction models. When considering total exports, the results
 reject the ELG hypothesis in almost all of these countries. When only
 manufactured exports are examined, no support is found for ELG in
 countries with relatively low shares of manufactured exports in total
 merchandise exports but strong support in countries with relatively high
 shares. These findings suggest that promoting exports may contribute to
 economic growth only after a certain threshold of manufactured exports has
 been reached. 
Journal: Applied Economics 
Pages: 1685-1695 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000266865 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266865 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1685-1695




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Martinez-Espineira 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Martinez-Espineira 
Author-Name: Celine Nauges 
Author-X-Name-First: Celine 
Author-X-Name-Last: Nauges 
Title: Is all domestic water consumption sensitive to price control? 
Abstract:
  This paper presents a model of residential water demand based on the
 Stone-Geary utility function, which explicitly considers a threshold of
 water that is insensitive to price and a quantity that can adapt
 instantaneously to price changes. First, the threshold is assumed
 constant, being then allowed to vary according to past levels of
 consumption, a proxy for households' water-using equipment and habits. A
 measure of the depreciation rate of habits is derived and the
 effectiveness of price and non-price conservation measures are compared.
 The results provide useful policy recommendations for the studied case of
 Seville (Spain). 
Journal: Applied Economics 
Pages: 1697-1703 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000218570 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1697-1703




Template-Type: ReDIF-Article 1.0
Author-Name: Mahmood Arai 
Author-X-Name-First: Mahmood 
Author-X-Name-Last: Arai 
Author-Name: Mats Kinnwall 
Author-X-Name-First: Mats 
Author-X-Name-Last: Kinnwall 
Author-Name: Peter Skogman Thoursie 
Author-X-Name-First: Peter Skogman 
Author-X-Name-Last: Thoursie 
Title: Cyclical and causal patterns of inflation and GDP growth 
Abstract:
  Empirical foundations for the view that high inflation impairs GDP growth
 are examined using annual data for 115 countries over the period
 1960-1995. Taking into account country heterogeneity and time-specific
 symmetric shocks, as well as endogeneity of inflation and dynamics of GDP
 growth, dynamic panel-data models of the effects of inflation on growth
 are estimated. No evidence is found supporting the view that inflation is
 in general harmful to GDP growth. On the other hand, there is a negative
 correlation between contemporaneous intra-country inflation and growth for
 periods characterized by positive oil-price shocks. 
Journal: Applied Economics 
Pages: 1705-1715 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000266874 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266874 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1705-1715




Template-Type: ReDIF-Article 1.0
Author-Name: J. J. Escario 
Author-X-Name-First: J. J. 
Author-X-Name-Last: Escario 
Author-Name: J. A. Molina 
Author-X-Name-First: J. A. 
Author-X-Name-Last: Molina 
Title: Will a special tax on tobacco reduce lung cancer mortality? Evidence for EU countries 
Abstract:
  This article carrys out a quantitative evaluation of the effects on the
 health of smokers of increasing a special tobacco tax, using the mortality
 rate from lung cancer as an indicator. To that end, it estimates two
 models that relate tobacco consumption, the mortality rate and this
 special tax, employing data drawn from a sample made-up of 12 EU countries
 and covering the years 1983-1993. The results show that increasing the
 special tax is a useful tool for reducing lung cancer mortality.
 Specifically, it finds that a 10% increase will reduce the lung cancer
 mortality rate by 1.21% in the first year, with such a reduction implying
 the avoidance of 1707 deaths in the sample countries. 
Journal: Applied Economics 
Pages: 1717-1722 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000266883 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266883 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1717-1722




Template-Type: ReDIF-Article 1.0
Author-Name: Kishor Sharma 
Author-X-Name-First: Kishor 
Author-X-Name-Last: Sharma 
Title: Horizontal and vertical intra-industry trade in Australian manufacturing: does trade liberalization have any impact? 
Abstract:
  This paper contributes to the literature on intra-industry trade (IIT) by
 disentangling such trade into horizontally and vertically differentiated
 products, and investigating their determinants in the context of trade
 liberalization in Australia. IIT in Australian manufacturing has increased
 following trade liberalization in 1980s and is increasingly dominated by
 vertically differentiated products. Industry level evidence confirms that
 the failure to segregate IIT into horizontally and vertically
 differentiated products produces misleading results as their determinants
 differ. Also, structural changes brought about by the policy
 liberalization appear to have an impact on total as well vertical IIT. 
Journal: Applied Economics 
Pages: 1723-1730 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000218534 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218534 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1723-1730




Template-Type: ReDIF-Article 1.0
Author-Name: Rolf Fare 
Author-X-Name-First: Rolf 
Author-X-Name-Last: Fare 
Author-Name: Shawna Grosskopf 
Author-X-Name-First: Shawna 
Author-X-Name-Last: Grosskopf 
Author-Name: William Weber 
Author-X-Name-First: William 
Author-X-Name-Last: Weber 
Title: The effect of risk-based capital requirements on profit efficiency in banking 
Abstract:
  The purpose of this paper is twofold: to show how to measure profit
 efficiency in banking using a newly developed technique, and to use that
 technique to determine the effect of risk-based capital requirements on
 the profit performance of US banks. The measure of profit efficiency used
 captures deviations from profit maximization arising from technical
 inefficiency, caused by a lack of managerial oversight and allocative
 inefficiency, which is caused by managers choosing a nonoptimal mix of
 inputs and outputs. A leverage ratio constraint and a risk-weighted
 capital ratio constraint are explicitly included in the model, which
 allows identification of the effect on profits of those constraints. The
 techniques are applied to random samples of US banks for 1990, 1992, and
 1994. The results indicate that allocative inefficiency is a larger source
 of profit loss than technical inefficiency and that the risk-based capital
 standards have a significant effect on bank allocative efficiency. 
Journal: Applied Economics 
Pages: 1731-1743 
Issue: 15 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000218525 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1731-1743




Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon 
Author-X-Name-First: Franklin 
Author-X-Name-Last: Mixon 
Author-Name: J. Matthew Tyrone 
Author-X-Name-First: J. Matthew 
Author-X-Name-Last: Tyrone 
Title: The 'Home Grown' Presidency: empirical evidence on localism in presidential voting, 1972-2000 
Abstract:
  This builds upon the conceptual framework of Lewis-Beck and Rice
 (American Journal of Political Science, 27, 548-56, 1983), in combination
 with the empirical design of Kjar and Laband (Public Choice, 112, 143-50,
 2002), to investigate home grown-ness in US presidential elections from
 1972-2000. It found that, ceteris paribus, home state vote shares for US
 Presidential election winners are 5.19-15.11 percentage points higher due
 to the home grown-ness effect. In the eight presidential elections
 analysed, this study confirms two aspects of prior work. First, the
 estimate of a home grown-ness effect in presidential elections of 5.19
 percentage points (on average), supports the 4 percentage point average
 found by Lewis-Beck and Rice (1983). Second, that support for the winning
 president monotonically increases as moves are made away from the
 opponent's home territory confirms the cascading dummy variable series
 approach developed by Kjar and Laband (2002). 
Journal: Applied Economics 
Pages: 1745-1749 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000227886 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1745-1749




Template-Type: ReDIF-Article 1.0
Author-Name: Rosella Levaggi 
Author-X-Name-First: Rosella 
Author-X-Name-Last: Levaggi 
Author-Name: Roberto Zanola 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Zanola 
Title: Patients' migration across regions: the case of Italy 
Abstract:
  This article analyses patient mobility across Italian regions. A modified
 gravity model of patient migration is specified and estimated using panel
 observations covering mobility and other main regional quality indicators
 over the period 1994-1997. Despite the high level of aggregation due to
 data constraints, the empirical findings show that in Italy there is wide
 scope for quality-driven mobility while income determines the quality of
 the service offered. 
Journal: Applied Economics 
Pages: 1751-1757 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000227903 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1751-1757




Template-Type: ReDIF-Article 1.0
Author-Name: Ross Finnie 
Author-X-Name-First: Ross 
Author-X-Name-Last: Finnie 
Title: Who moves? A logit model analysis of inter-provincial migration in Canada 
Abstract:
  This paper addresses the topic of inter-provincial migration in terms of
 the basic question: 'Who moves?'. Panel logit models of the probability
 that an individual changes his or her province of residence from one year
 to the next over the 1982-1995 period are estimated using tax-based
 longitudinal data. It is found that moving is (i) inversely related to the
 home province's population size, presumably reflecting local economic
 conditions and labour market scale effects, while language also plays an
 important role; (ii) more common among residents of smaller cities, towns,
 and especially rural areas than those in larger cities; (iii) negatively
 related to age, marriage, and the presence of children for both men and
 women; (iv) positively related to the provincial unemployment rate, the
 individuals' receipt of unemployment insurance (except Entry Men), having
 no market income (except for Entry Men and Entry Women), and the receipt
 of social assistance (especially for men); (v) (slightly) positively
 related to earnings levels (beyond the zero earnings point) for prime aged
 men, but not for others; and (vi) more or less stable over time, with
 men's rates declining slightly and women's holding steadier or rising
 slightly, indicating a divergence in trends along gender lines. 
Journal: Applied Economics 
Pages: 1759-1779 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191147 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191147 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1759-1779




Template-Type: ReDIF-Article 1.0
Author-Name: Hiranya Nath 
Author-X-Name-First: Hiranya 
Author-X-Name-Last: Nath 
Title: Relative importance of sectoral and aggregate sources of price changes 
Abstract:
  This paper estimates a dynamic common factor model to assess relative
 importance of the aggregate and the sector-specific factors that determine
 changes in the prices of individual products. It also examines how
 aggregate price changes are affected by these factors. Two different
 specifications of the model are estimated: the baseline model with one
 aggregate factor, and a second specification with two aggregate factors.
 In the one-actor model, the aggregate factor contributes little to the
 movements of changes in prices, mostly of nondurable goods whereas it
 seems to have important contributions to the movements of changes in
 prices of commodity groups mainly used as intermediate or capital goods.
 In the specification with two aggregate factors, the additional factor has
 significant effects on changes in prices of 'farm products' and 'processed
 foods and feeds' only. Forecast-error variance decompositions of both
 aggregate and disaggregate price changes suggest that sectoral factors
 account for most of the variability at short horizons while the
 contributions of the aggregate factors increase as the time horizon
 lengthens. The results also show that sectoral factors are not only
 important for relative price changes but also have significant impact on
 aggregate inflation. The estimated common factors have statistically
 significant correlations with money growth and changes in the unemployment
 rate. 
Journal: Applied Economics 
Pages: 1781-1796 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000236048 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000236048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1781-1796




Template-Type: ReDIF-Article 1.0
Author-Name: Valdemar Smith 
Author-X-Name-First: Valdemar 
Author-X-Name-Last: Smith 
Author-Name: Mogens Dilling-Hansen 
Author-X-Name-First: Mogens 
Author-X-Name-Last: Dilling-Hansen 
Author-Name: Tor Eriksson 
Author-X-Name-First: Tor 
Author-X-Name-Last: Eriksson 
Author-Name: Erik Str&#xf8;jer Madsen 
Author-X-Name-First: Erik Str&#xf8;jer 
Author-X-Name-Last: Madsen 
Title: R&D and productivity in Danish firms: some empirical evidence 
Abstract:
  The aim of the paper is to examine the relationship between R&D capital
 and productivity using microdata for Danish manufacturing firms. The
 influence of factors such as ownership, innovative characteristics and
 source of funding accounted for. The return to accumulated R&D capital is
 estimated to be in the neighbourhood of 9-12%, whereas the short-run
 effect of R&D is insignificant. Furthermore, the direct influence from
 foreign ownership, source of funding accounted for, innovative
 characteristics and ownership dispersion on productivity are analysed.
 However, none of the factors seem to have an impact on firm productivity.
 The same is the case for the indirect influence coming from interaction
 with accumulated R&D capital. 
Journal: Applied Economics 
Pages: 1797-1806 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000227895 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1797-1806




Template-Type: ReDIF-Article 1.0
Author-Name: Jenny Lye 
Author-X-Name-First: Jenny 
Author-X-Name-Last: Lye 
Author-Name: Joe Hirschberg 
Author-X-Name-First: Joe 
Author-X-Name-Last: Hirschberg 
Title: Alcohol consumption, smoking and wages 
Abstract:
  The good health of an individual is a combination of uncontrollable
 factors that includes genetics and random events and controllable factors
 through the regulation of activities such as smoking and drinking. Since
 the work of Grossman in the 1970s, a significant relationship between
 health and earnings has been predicted. In this present paper the 1995
 Australian National Health Survey is used to examine simultaneously the
 effects of drinking and smoking on wages. To model the interaction of
 smoking with alcohol consumption separate models are fitted for smokers
 and nonsmokers. These models account for potential selectivity bias
 resulting from the decision to smoke, and endogeneity arising from a
 potential causal relationship between earnings and alcohol consumption. 
Journal: Applied Economics 
Pages: 1807-1817 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001710645 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001710645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1807-1817




Template-Type: ReDIF-Article 1.0
Author-Name: P. J. Dawson 
Author-X-Name-First: P. J. 
Author-X-Name-Last: Dawson 
Author-Name: L. J. Hubbard 
Author-X-Name-First: L. J. 
Author-X-Name-Last: Hubbard 
Title: Exports and economic growth in Central and East European countries during transition 
Abstract:
  This paper quantifies the contribution of exports to economic growth in
 Central and East European countries (CEECs) during transition. Two
 theoretical models are examined: the first is based on an aggregate
 production function which includes exports as an additional 'input'; while
 the second is based on a two-sector (exports and non-exports) model where
 exports provide positive externalities in non-export production. Each
 model is estimated with both fixed and random effects using panel data.
 Results show that the random effects model is preferred and that exports
 have a significant impact on economic growth. 
Journal: Applied Economics 
Pages: 1819-1824 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/000368042000241123 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368042000241123 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1819-1824




Template-Type: ReDIF-Article 1.0
Author-Name: John Leeming 
Author-X-Name-First: John 
Author-X-Name-Last: Leeming 
Author-Name: Paul Turner 
Author-X-Name-First: Paul 
Author-X-Name-Last: Turner 
Title: The BSE crisis and the price of red meat in the UK 
Abstract:
  This paper presents estimates of price functions for beef, lamb and pork
 for the UK economy which allow for the effects of the 1996 BSE crisis. The
 estimates illustrate the importance of allowing for the joint endogeneity
 of prices in these markets. This shown that the effects of this crisis had
 a significant negative effect on the price of beef and a positive and
 significant effect on the price of lamb. However, there appears to have
 been little effect on the price of pork. 
Journal: Applied Economics 
Pages: 1825-1829 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000227868 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227868 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1825-1829




Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Dritsakis 
Author-X-Name-First: Nikolaos 
Author-X-Name-Last: Dritsakis 
Title: Exports, investments and economic development of pre-accession countries of the European Union: an empirical investigation of Bulgaria and Romania 
Abstract:
  This paper attempts to analyse the relationship between exports,
 investments and economic development in two pre-accession countries of the
 European Union, Bulgaria and Romania. For investigation of this
 relationship a multivariate autoregressive VAR model is used. The results
 of cointegration analysis showed that there is one cointegrated vector
 among exports, investments and economic growth for the two countries.
 Granger causality tests based on error correction models (ECM) indicated
 that there is a 'strong Granger causal' relation between economic growth
 and exports as well as between investments and exports for the two
 countries. In addition, economic development and capital accumulation in
 an economy seem to have just as much of an influence on exports as exports
 have on capital accumulation and economic development. 
Journal: Applied Economics 
Pages: 1831-1838 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001710627 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001710627 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1831-1838




Template-Type: ReDIF-Article 1.0
Author-Name: U. Ozlale 
Author-X-Name-First: U. 
Author-X-Name-Last: Ozlale 
Author-Name: E. Yeldan 
Author-X-Name-First: E. 
Author-X-Name-Last: Yeldan 
Title: Measuring exchange rate misalignment in Turkey 
Abstract:
  Turkey has embarked an extensive dis-inflation and stabilization program
 in December 1999. The programme exclusively relied on a nominally pegged
 (anchored) exchange rate system for dis-inflation and on fiscal austerity.
 In February 2001, however, Turkey experienced a severe financial crisis
 which necessiated the dismantling of the exchange rate anchor and a switch
 to a regime of free float. This article proposes a new methodology to
 measure exchange rate misalignment for Turkey over the period January 1992
 to December 2001. In a single equation framework, the model estimates the
 real exchange rate within a time varying parameter model, where a
 return-to-normality assumption about the parameters is assumed. Contrary
 to common belief, it is found that, except the initial four months of the
 stabilization programme, the Turkish lira remained undervalued for most of
 2000. Also, one observes a pattern where the lira has been overvalued
 after the financial crisis of 1994 until 1998, and has displayed a
 tendency of undervaluation after then. 
Journal: Applied Economics 
Pages: 1839-1849 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000279735 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000279735 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1839-1849




Template-Type: ReDIF-Article 1.0
Author-Name: Stanley Thompson 
Author-X-Name-First: Stanley 
Author-X-Name-Last: Thompson 
Author-Name: P. Michael Schmitz 
Author-X-Name-First: P. Michael 
Author-X-Name-Last: Schmitz 
Author-Name: Nobuyuki Iwai 
Author-X-Name-First: Nobuyuki 
Author-X-Name-Last: Iwai 
Author-Name: Barry Goodwin 
Author-X-Name-First: Barry 
Author-X-Name-Last: Goodwin 
Title: The real rate of protection: the income and insurance effects of agricultural policy 
Abstract:
  Agricultural price policies in developed countries aim at protecting
 farmers against both low and volatile world market prices. However,
 traditional indicators of protection only refer to the income (level)
 effect of policy. Following other research, it is argued that public
 policy can also yield an insurance (stabilizing) effect. In this paper a
 way to measure these dual effects is proposed. The method is illustrated
 with wheat market data for the USA and the European Union. Strong evidence
 is found that the insurance effect is an important component of
 protection, albeit a small one relative to the income effect. Policy
 support provided higher income and lower insurance effects in the EU than
 in the USA. For both markets, policy reforms in the 1990s led to
 significantly reduced income effects and smaller insurance effects.
 Without accounting for the influence of policy on income variability,
 traditional measures of protection will understate the real rate of
 protection. 
Journal: Applied Economics 
Pages: 1851-1858 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000279744 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000279744 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1851-1858




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Gil 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Gil 
Author-Name: B. Dhehibi 
Author-X-Name-First: B. 
Author-X-Name-Last: Dhehibi 
Author-Name: M. Ben Kaabia 
Author-X-Name-First: M. Ben 
Author-X-Name-Last: Kaabia 
Author-Name: A. M. Angulo 
Author-X-Name-First: A. M. 
Author-X-Name-Last: Angulo 
Title: Non-stationarity and the import demand for virgin olive oil in the European Union 
Abstract:
  The aim of this study is to analyse the importation of virgin olive oil
 to European Union countries, paying special attention to the Spanish
 export contribution. The method used is based on the estimation of an
 imports demand system. The novelty of the paper lies not in the modelling
 approach but in the explicit consideration of the univariate
 characteristics of series that is included in the analysis. Since prices
 are non-stationary, cointegration among them has been tested. Results
 indicate that they are cointegrated and that homogeneity holds. As a
 result, relative prices are included in the imports demand system.
 Structural change is also considered so as to account for the entrance of
 both Spain and Greece into the EU during the period studied. Results
 demonstrate the leadership of Spain within the EU virgin olive oil market
 as well as the increasing competitiveness of Greek oil. 
Journal: Applied Economics 
Pages: 1859-1869 
Issue: 16 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000227877 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227877 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1859-1869




Template-Type: ReDIF-Article 1.0
Author-Name: Francesca Borgonovi 
Author-X-Name-First: Francesca 
Author-X-Name-Last: Borgonovi 
Title: Performing arts attendance: an economic approach 
Abstract:
  This paper examines to what extent art education, prices and standard
 socio-economic characteristics influence attendance at professional
 performing arts events (theatre, classical music, opera, ballet and
 dance). It distinguishes the influence such variables have on whether a
 person participates or not, from the effect that they have on the number
 of times a person decides to attend. The introduction of art education and
 price variables is likely to reduce the omitted variable bias present in
 previous empirical studies and improve estimations. Art education is
 highly correlated with participation, while it is not equally associated
 with frequency of attendance. Prices and geographical concentration are
 generally not correlated with participation, however there are large
 differences among art forms and economic resources appear to be relevant
 in the case of classical music. Policy makers can use information on what
 results can be expected from policies aimed at reducing prices or increase
 art education in the population in their attempt to improve attendance and
 increase access to the performing arts. 
Journal: Applied Economics 
Pages: 1871-1885 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000264010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000264010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1871-1885




Template-Type: ReDIF-Article 1.0
Author-Name: Monica Auteri 
Author-X-Name-First: Monica 
Author-X-Name-Last: Auteri 
Author-Name: Mauro Costantini 
Author-X-Name-First: Mauro 
Author-X-Name-Last: Costantini 
Title: Is social protection a necessity or a luxury good? New multivariate cointegration panel data results 
Abstract:
  The aim of this paper is to test the claim that social protection is a
 luxury good. Therefore, GDP elasticity of selected social protection
 expenditure is estimated using a new econometric approach developed first
 by Kao and Chiang (Advances in Econometrics, 15, 179-222, 2000). Time
 series properties of selected social expenditure in 18 OECD countries from
 1981 to 1998 are examined. Using panel data cointegration tests and OLS,
 FMOLS and DOLS estimators, results were found which differ from previous
 analyses reporting substantially higher income elasticities. With the
 FMOLS, selected social expenditure has income elasticities smaller than
 one but greater than one with the DOLS. It is noteworthy that whether
 selected social expenditure is stationary or nonstationary may have
 critical implications for researchers and policy makers desiring to model
 and explain the impact of this expenditure on a country economic system. 
Journal: Applied Economics 
Pages: 1887-1898 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000291902 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291902 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1887-1898




Template-Type: ReDIF-Article 1.0
Author-Name: Alireza Dorestani 
Author-X-Name-First: Alireza 
Author-X-Name-Last: Dorestani 
Title: Transfer price and equilibrium in multidivisional firms: an examination of divisional autonomy and central control 
Abstract:
  The problem faced by a firm that oversees two divisions, one of which
 produces and one of which uses an intermediate good, is considered. Since
 divisions have information that is not available to the centre, it is
 useful to allow the divisions some autonomy in their sales and procurement
 decisions. The analysis allows the centre to specify the transfer price
 that must be used in trades between divisions as well as placing
 restraints on their ability to trade with outside firms. In most of the
 models presented in this paper, the centre cannot observe the market price
 of the intermediate product, and in some models it cannot observe
 divisional costs. It is shown how the centre can obtain the full
 information solution in the simplest case by using a penalty factor that
 encourages internal trade. However, when divisional costs are not
 observable, the full information outcome is not obtainable. In this case,
 the optimal value of the penalty factor implies a tradeoff between the
 benefits of allowing divisions to act to take advantage of price
 opportunities in outside markets and savings in transactions costs of
 trades between divisions. 
Journal: Applied Economics 
Pages: 1899-1906 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000291911 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291911 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1899-1906




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Atkins 
Author-X-Name-First: Frank 
Author-X-Name-Last: Atkins 
Author-Name: Milanda Chan 
Author-X-Name-First: Milanda 
Author-X-Name-Last: Chan 
Title: Trend breaks and the fisher hypothesis in canada and the United States 
Abstract:
  Using the sequential estimation methodology developed by Banerjee,
 Lumsdaine and Stock (Journal of Business and Economic Statistics, 10(3),
 271-87, 1992), Zivot and Andrews (Journal of Business and Economic
 Statistics, 10(3), 251-70, 1992) and extended by Lumsdaine and Papell
 (Review of Economics and Statistics, 79(2), 212-18, 1997), empirical
 evidence is found consistent with the hypothesis that the 90-day Treasury
 Bill rate and the inflation rate in Canada and the US are stationary
 around a deterministic trend with two breaks. When the breaks are filtered
 out, the data is consistent with partial long-run adjustment of the
 nominal interest rate to an inflation shock, but not of the size predicted
 by the Fisher Effect. 
Journal: Applied Economics 
Pages: 1907-1913 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000291920 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291920 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1907-1913




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Ataullah 
Author-X-Name-First: Ali 
Author-X-Name-Last: Ataullah 
Author-Name: Tony Cockerill 
Author-X-Name-First: Tony 
Author-X-Name-Last: Cockerill 
Author-Name: Hang Le 
Author-X-Name-First: Hang 
Author-X-Name-Last: Le 
Title: Financial liberalization and bank efficiency: a comparative analysis of India and Pakistan 
Abstract:
  This paper provides a comparative analysis of the evolution of the
 technical efficiency of commercial banks in India and Pakistan during
 1988-1998, a period characterized by far-reaching changes in the banking
 industry brought about by financial liberalization. Data Envelopment
 Analysis is applied to two alternative input-output specifications to
 measure technical efficiency, and to decompose technical efficiency into
 its two components, pure technical efficiency and scale efficiency. The
 consistency of the estimated efficiency scores are checked by examining
 their relationship with three traditional non-frontier measures of bank
 performance. In addition, the relationship between bank size and technical
 efficiency is examined. It is found that the overall technical efficiency
 of the banking industry of both countries improved gradually over the
 years, especially after 1995. Unlike public sector banks in India, public
 sector banks in Pakistan witnessed improvement in scale efficiency only.
 It is also found that banks are relatively more efficient in generating
 earning assets than in generating income. This is attributed to the
 presence of high non-performing loans. In addition, it is found that the
 gap between the pure technical efficiency of different size groups has
 declined over the years. 
Journal: Applied Economics 
Pages: 1915-1924 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/000368404200068638 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200068638 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1915-1924




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Leon-Gonzalez 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Leon-Gonzalez 
Author-Name: Daniel Montolio 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Montolio 
Title: Growth, convergence and public investment. A Bayesian model averaging approach 
Abstract:
  The aim of this study is twofold. First, the determinants of economic
 growth are studied among a wide set of potential variables for the Spanish
 provinces (NUTS3). Among others, various types of private, public and
 human capital in the group of growth factors are included. Also, it is
 analysed whether Spanish provinces have converged in economic terms in
 recent decades. The second objective is to obtain cross-section and panel
 data parameter estimates that are robust to model specification. For this
 purpose, a Bayesian Model Averaging (BMA) approach is used. Bayesian
 methodology constructs parameter estimates as a weighted average of linear
 regression estimates for every possible combination of included variables.
 The weight of each regression estimate is given by the posterior
 probability of each model. 
Journal: Applied Economics 
Pages: 1925-1936 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000245534 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000245534 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1925-1936




Template-Type: ReDIF-Article 1.0
Author-Name: Mahmut Yasar 
Author-X-Name-First: Mahmut 
Author-X-Name-Last: Yasar 
Author-Name: Roderick Rejesus 
Author-X-Name-First: Roderick 
Author-X-Name-Last: Rejesus 
Author-Name: Ilhami Mintemur 
Author-X-Name-First: Ilhami 
Author-X-Name-Last: Mintemur 
Title: Is there evidence of creative destruction in the Turkish manufacturing sector? Lessons from a cross-industry analysis of aggregate productivity growth 
Abstract:
  This paper examines the Schumpeterian creative destruction process by
 decomposing and analysing aggregate industry-level productivity growth in
 three Turkish manufacturing industries. The results are somewhat
 supportive of the Schumpeterian hypothesis given that the productivity
 effects within plants contributed the most to the aggregate level
 productivity growth. However, the results generally contradict the insight
 that plants entering the market have higher productivity than plants that
 exit the market. This supports Caballero and Hammour's (NBER Working Paper
 No. 7720, 2000) arguments that institutional and market constraints may
 interfere with the proper functioning of Schumpeter's creative destruction
 process. 
Journal: Applied Economics 
Pages: 1937-1945 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/000368404200068610 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200068610 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1937-1945




Template-Type: ReDIF-Article 1.0
Author-Name: Anita Daraisami 
Author-X-Name-First: Anita 
Author-X-Name-Last: Daraisami 
Title: Export growth slowdown and currency crisis: the Malaysian experience 
Abstract:
  A slowdown in export growth occurred in all East Asian economies that
 were affected by the Asian currency crisis. Misaligned exchange rates have
 been widely cited as a cause of the slowdown. In the Malaysian context at
 least a vulnerability to the downturn in the electronic cycle could also
 be a major factor leading to poor export performance. Using the US/yen
 dollar rate as a proxy for exchange rate misalignment and US total new
 orders for electronics as a proxy for global electronics demand,
 cointegration analysis was used to establish the likely causes of a
 slowdown in Malaysia's export performance. Empirical results suggest that
 a unique long-run relationship exists between all three variables. The
 policy implications of these results including exchange rate monitoring
 and export diversification are discussed in the conclusion. 
Journal: Applied Economics 
Pages: 1947-1957 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000236039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000236039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1947-1957




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Trostel 
Author-X-Name-First: Philip 
Author-X-Name-Last: Trostel 
Author-Name: Ian Walker 
Author-X-Name-First: Ian 
Author-X-Name-Last: Walker 
Title: Sheepskin effects in work behaviour 
Abstract:
  Numerous studies have documented disproportionate increases in wage rates
 from receiving educational credentials, as opposed to from just years of
 education. This study shows 'sheepskin effects' in hours of work that are
 similar to the sheepskin effects in wage rates. Systematic sheepskin
 effects are found in labour-force participation and conditional hours of
 work, as well as in wage rates. Moreover, the sheepskin effects in hours
 of work are apparently not simply endogenous responses to the sheepskin
 effects in wage rates. Thus, sheepskin effects in earnings are much larger
 than those previously shown for wage rates. The results suggest that
 education is sorted more by work intentions than innate ability. 
Journal: Applied Economics 
Pages: 1959-1966 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000236057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000236057 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1959-1966




Template-Type: ReDIF-Article 1.0
Author-Name: Ross Finnie 
Author-X-Name-First: Ross 
Author-X-Name-Last: Finnie 
Author-Name: Ted Wannell 
Author-X-Name-First: Ted 
Author-X-Name-Last: Wannell 
Title: Evolution of the gender earnings gap among Canadian university graduates 
Abstract:
  This paper reports the results of an empirical analysis of the gender
 earnings gap among recent Canadian Bachelor's level university graduates.
 The overall gap as of two years leaving university narrowed significantly
 across successive cohorts of graduates, but widened significantly from two
 to five years out for all groups. Differences in the explanatory variables
 'explain' account for between 40% and essentially the entire gap across
 the different periods, this portion rising from two to five years out and
 across cohorts. By the final group, all of the gap is thus 'explained' at
 the two-year point in time, and most of it is explained at the five-year
 mark, meaning that labour market returns (measured in this manner) are
 largely gender-neutral for the last group of graduates. Hours of work is
 the single most important influence, while past work experience, job
 characteristics, family status, and province of residence and language
 have smaller and more mixed effects. 
Journal: Applied Economics 
Pages: 1967-1978 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000191138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1967-1978




Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Borland 
Author-X-Name-First: Jeff 
Author-X-Name-Last: Borland 
Author-Name: Joseph Hirschberg 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Hirschberg 
Author-Name: Jenny Lye 
Author-X-Name-First: Jenny 
Author-X-Name-Last: Lye 
Title: Computer knowledge and earnings: evidence for Australia 
Abstract:
  This paper uses data on wage and salary workers in Australia in 1993 to
 examine the relation between computer knowledge and earnings. A unique
 feature of the data set that is used is detailed information on the types
 and levels of computer skills possessed by individual workers. The main
 objectives of the study are to contribute to understanding the magnitude
 and sources of the relation between computer knowledge and earnings.
 Similar to existing research it is found that there is a large and
 significant return to computer knowledge, but that the magnitude of the
 return is substantially reduced in regressions that include detailed
 occupation controls. Using the detailed information on workers' computer
 skills the main finding is that earnings are significantly positively
 related to the number of types of skills and average level of skills
 possessed by a worker. 
Journal: Applied Economics 
Pages: 1979-1993 
Issue: 17 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840410001710654 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001710654 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1979-1993




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Groen 
Author-X-Name-First: Jan 
Author-X-Name-Last: Groen 
Title: Corporate credit, stock price inflation and economic fluctuations 
Abstract:
  This study analyses the empirical interaction between real corporate
 credit, real income, real stock prices, the short-term interest rate and
 inflation for the Netherlands and the USA. The framework is based on a
 five-variable structural vector error correction model which identifies
 the permanent and temporary shocks within the system. Erratic shocks in
 the real amount of corporate credit and in stock prices could potentially
 have some impact on inflation in the case of the USA and on real output in
 the Netherlands. However, the structural VAR analysis also shows that the
 above-mentioned erratic shocks only explain a small proportion of the
 variation in inflation and economic activity, and inflation objective
 shifts and supply side shocks are much more important determinants for
 economic fluctuations. 
Journal: Applied Economics 
Pages: 1995-2006 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000258251 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000258251 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:1995-2006




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Author-Name: David Berri 
Author-X-Name-First: David 
Author-X-Name-Last: Berri 
Title: Convergence and clustering in major league baseball: the haves and have nots? 
Abstract:
  There appear to be two distinct views on the level of competitive balance
 within Major League Baseball. One view, mostly associated with academics,
 is that competition is more equal today than it ever has been. The other
 view, mostly associated with the media and the industry, is that
 competition is far worse today. The present paper, borrowing from the
 literature on economic convergence, finds that both views are valid. More
 specifically, while competitive balance has continued to improve, the
 improvement has been such as to create distinct convergence clusters. A
 discussion of the composition of these clusters is offered in the text. 
Journal: Applied Economics 
Pages: 2007-2014 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000261851 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000261851 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2007-2014




Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Almus 
Author-X-Name-First: Matthias 
Author-X-Name-Last: Almus 
Title: Job creation through public start-up assistance? 
Abstract:
  This study examines the impact of German public start-up assistance
 programmes administered by the Deutsche Ausgleichsbank (DtA) on the
 performance of young firms. The empirical analysis is based on firms from
 the ZEW Entrepreneurship Study that either received start-up loans in one
 or more DtA schemes or did not receive any funding from the DtA at all.
 The paper applies a non-parametric matching approach often applied by
 labour market economists. The interesting success measure is the average
 annual employment growth rate over a six year period and the resulting
 causal effect is the difference of this measure between the group of
 subsidized firms and the selected control group firms that did not receive
 any DtA start-up loans. The empirical analysis shows that DtA start-up
 loans significantly improve the average employment growth rate. 
Journal: Applied Economics 
Pages: 2015-2024 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000201802 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201802 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2015-2024




Template-Type: ReDIF-Article 1.0
Author-Name: Amit Sen 
Author-X-Name-First: Amit 
Author-X-Name-Last: Sen 
Title: Are US macroeconomic series difference stationary or trend-break stationary? 
Abstract:
  This article tests for the presence of a unit-root in all time series
 included in the extended Nelson-Plosser data set using the statistics
 devised by Zivot and Andrews, Perron and Murray and Zivot. It specifies
 the mixed model characterization of the trend-break stationary alternative
 that allows for a simultaneous break in both the intercept and slope of
 the trend-function. It rejects the unit-root null hypothesis for real GNP,
 nominal GNP, real per capita GNP, industrial production, employment, GNP
 deflator, nominal wages, interest rate and common stock prices. Use of
 appropriate critical values to assess the significance of the
 trend-function coefficients reveals that the slope-break should be
 included in real GNP, nominal GNP, real per capita GNP, nominal wages,
 interest rate and common stock prices. The results indicate that there is
 less evidence against the unit-root hypothesis with the extended
 Nelson-Plosser data compared to the original Nelson-Plosser data. 
Journal: Applied Economics 
Pages: 2025-2029 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000228696 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000228696 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2025-2029




Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Bagliano 
Author-X-Name-First: Fabio 
Author-X-Name-Last: Bagliano 
Author-Name: Alessandro Sembenelli 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Sembenelli 
Title: The cyclical behaviour of inventories: European cross-country evidence from the early 1990s recession 
Abstract:
  This paper employs data for a panel of firms from France, Italy and the
 UK to study the effect of the recession of the early 1990s on inventory
 investment, controlling for cyclical fluctuations at the firm level. The
 results clearly show some common patterns across countries, pointing to
 the relevance of financial factors (namely, the level of leverage) in
 propagating initial recessionary shocks. Moreover, Italian firms,
 especially if 'small and young', seem more likely to suffer from a
 reduction in the value of collateralizable assets possibly originated by
 restrictive policy actions. 
Journal: Applied Economics 
Pages: 2031-2044 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000295601 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295601 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2031-2044




Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Fraquelli 
Author-X-Name-First: Giovanni 
Author-X-Name-Last: Fraquelli 
Author-Name: Massimiliano Piacenza 
Author-X-Name-First: Massimiliano 
Author-X-Name-Last: Piacenza 
Author-Name: Davide Vannoni 
Author-X-Name-First: Davide 
Author-X-Name-Last: Vannoni 
Title: Scope and scale economies in multi-utilities: evidence from gas, water and electricity combinations 
Abstract:
  Within the recent debate on liberalization of local public services, the
 paper investigates the cost properties of a sample of Italian public
 utilities providing in combination gas, water and electricity. The
 estimates from a Composite Cost Function econometric model (Pulley and
 Braunstein, 1992) are compared with the ones coming from other traditional
 functional forms such as the Standard Translog, the Generalized Translog,
 and the Separable Quadratic. The results highlight the presence of global
 scope and scale economies only for multi-utilities with output levels
 lower than the ones characterizing the 'median' firm. This indicates that
 relatively small specialized firms would benefit from cost reductions by
 evolving into multi-utilities providing similar network services such as
 gas, water and electricity. However, for larger-scale utilities the
 hypothesis of null cost advantages is not rejected. Thus, it is possible
 that the recent diversification waves of leading companies are explained
 by factors other than cost synergies, so that the welfare gains that can
 be reasonably expected from such examples of horizontal integration, if
 any, are likely to be very low. 
Journal: Applied Economics 
Pages: 2045-2057 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000245543 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000245543 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2045-2057




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Gourlay 
Author-X-Name-First: Adrian 
Author-X-Name-Last: Gourlay 
Author-Name: Jonathan Seaton 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Seaton 
Title: The determinants of firm diversification in UK quoted companies 
Abstract:
  This paper examines the role of resource-based and governance factors in
 determining the boundaries of UK quoted companies, measured by both the
 probability and intensity of market diversification. Using a panel of over
 2000 firms for the period 1988 to 2001 it is found that firm-level
 heterogeneity and industry characteristics account for the variability in
 diversification behaviour and that resource-based and governance factors
 interact in a complex manner not necessarily fully explained by the
 theoretical literature. The results also indicate that the degree of data
 aggregation has significant implications for the empirical modelling of
 market diversification. 
Journal: Applied Economics 
Pages: 2059-2071 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000295610 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295610 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2059-2071




Template-Type: ReDIF-Article 1.0
Author-Name: George Papachristou 
Author-X-Name-First: George 
Author-X-Name-Last: Papachristou 
Title: The British gambler's fallacy 
Abstract:
  People facing choices under uncertainty, and gamblers in particular, are
 often subject to statistical fallacies. This paper explores the hypothesis
 that if lotto players were subject to the 'gambler's fallacy', predictable
 fluctuations in the number of jackpots would occur. Evidence, based on a
 Poisson regression model in which the number of winning bets is
 conditional on the history of draws, indicates that number selection in
 the UK is only marginally affected by the history of draws. 
Journal: Applied Economics 
Pages: 2073-2077 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000295629 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295629 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2073-2077




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Crime rates, male youth unemployment and real income in Australia: evidence from Granger causality tests 
Abstract:
  This article applies Granger causality tests to examine the relationship
 between seven different categories of property crime and violent crime
 against the person, male youth unemployment and real male average weekly
 earnings in Australia from 1964 to 2001 within a cointegration and vector
 error correction framework. It is found that fraud, homicide and motor
 vehicle theft are cointegrated with male youth unemployment and real male
 average weekly earnings. However, there is no evidence of a long-run
 relationship between either break and enter, robbery, serious assault or
 stealing with male youth unemployment and real male average weekly
 earnings. 
Journal: Applied Economics 
Pages: 2079-2095 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000261842 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000261842 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2079-2095




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Isely 
Author-X-Name-First: Paul 
Author-X-Name-Last: Isely 
Author-Name: Matthew Roelofs 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Roelofs 
Title: Primary market and aftermarket competition in the bicycle component industry 
Abstract:
  This study examines the bicycle component industry. This industry is
 characterized by one dominant firm, Shimano Inc., and four or five smaller
 players. Firms in the component industry produce components for sale in
 two related markets, the market for original equipment manufacturers (OEM)
 and the component aftermarket. A unique data set containing information on
 aftermarket prices and OEM market shares is used to determine whether or
 not market power in the aftermarket is a function of OEM market power. The
 results indicate that concentration in the OEM market is positively
 related to aftermarket price, while an individual firm's OEM market share
 is inversely related to aftermarket price. 
Journal: Applied Economics 
Pages: 2097-2102 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000258657 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000258657 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2097-2102




Template-Type: ReDIF-Article 1.0
Author-Name: Olga Alonso-Villar 
Author-X-Name-First: Olga 
Author-X-Name-Last: Alonso-Villar 
Author-Name: Jose-MarIa Chamorro-Rivas 
Author-X-Name-First: Jose-MarIa 
Author-X-Name-Last: Chamorro-Rivas 
Author-Name: Xulia Gonzalez-Cerdeira 
Author-X-Name-First: Xulia 
Author-X-Name-Last: Gonzalez-Cerdeira 
Title: Agglomeration economies in manufacturing industries: the case of Spain 
Abstract:
  This study analyses the extent of geographical concentration of Spanish
 industry between 1993 and 1999, and studies the agglomeration economies
 that could underlie that concentration. The results confirm that there is
 major geographic concentration in a number of industries with widely
 varying characteristics, including high-tech businesses and those linked
 to the provision of natural resources as well as traditional industries.
 The analysis of the scope of spillovers behind this agglomeration supports
 the idea that transportation costs may induce plants in some industries to
 locate near their customers and suppliers. However, one cannot conclude
 that this is a common fact for all industries. This study also shows that
 the higher the technological level of an industry, the higher the
 agglomeration it experiences. This result implies the importance of the
 labour market, informational spillovers and producer services location for
 the agglomeration of these industries. 
Journal: Applied Economics 
Pages: 2103-2116 
Issue: 18 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000264029 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000264029 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2103-2116




Template-Type: ReDIF-Article 1.0
Author-Name: Jason Winfree 
Author-X-Name-First: Jason 
Author-X-Name-Last: Winfree 
Author-Name: Jill McCluskey 
Author-X-Name-First: Jill 
Author-X-Name-Last: McCluskey 
Author-Name: Ron Mittelhammer 
Author-X-Name-First: Ron 
Author-X-Name-Last: Mittelhammer 
Author-Name: Rodney Fort 
Author-X-Name-First: Rodney 
Author-X-Name-Last: Fort 
Title: Location and attendance in major league baseball 
Abstract:
  This study uses a travel-cost model to analyse the attendance impacts on
 Major League Baseball (MLB) of the closest substitute MLB team. It is
 found that the closer two teams are, the lower attendance is at each team
 relative to two teams that are farther apart. In addition, when a new team
 moves into the area of an existing team, there is an additional initial
 reduction in attendance for the incumbent team. This has implications for
 actions aimed at changing the number of teams in MLB either by contraction
 or by possible antitrust approaches that would increase the number of
 teams, especially in megalopolis markets. Further, and consistent with
 past demand studies, pricing is in the inelastic portion of gate demand
 and fan loyalty is a significant contributor to the estimation of gate
 attendance. 
Journal: Applied Economics 
Pages: 2117-2124 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000287664 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287664 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2117-2124




Template-Type: ReDIF-Article 1.0
Author-Name: Mahmoud Wahab 
Author-X-Name-First: Mahmoud 
Author-X-Name-Last: Wahab 
Title: Economic growth and government expenditure: evidence from a new test specification 
Abstract:
  A new test specification of Wagner's Law of Public Expenditure has been
 formulated. The aim is to disentangle the effects of accelerating and
 decelerating economic growth on growth in government expenditure. Two
 alternative proxies for the state of the economy are experimented with.
 The first defines the current state of the economy by relating it to its
 historical mean growth rate, while the second defines it relative to a
 pooled time-series/cross-sectional mean growth rate. This distinction is
 then explicitly incorporated into an error correction model that
 parameterizes the bivariate relation between government expenditure and
 economic growth for alternative OECD country groupings. The results
 suggest that government expenditure increases less than proportionately
 with accelerating economic growth and decreases more than proportionately
 with decelerating economic growth. There is only a limited support for
 Wagner's Law. 
Journal: Applied Economics 
Pages: 2125-2135 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000306923 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000306923 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2125-2135




Template-Type: ReDIF-Article 1.0
Author-Name: Finn Roar Aune 
Author-X-Name-First: Finn Roar 
Author-X-Name-Last: Aune 
Author-Name: Rolf Golombek 
Author-X-Name-First: Rolf 
Author-X-Name-Last: Golombek 
Author-Name: Sverre Kittelsen 
Author-X-Name-First: Sverre 
Author-X-Name-Last: Kittelsen 
Author-Name: Knut Einar Rosendahl 
Author-X-Name-First: Knut Einar 
Author-X-Name-Last: Rosendahl 
Title: Liberalizing the energy markets of Western Europe - a computable equilibrium model approach 
Abstract:
  Using a computable equilibrium model, the short-run effects of a radical
 liberalization of the West European natural gas and electricity markets
 are examined. In each model country, oil, gas, coal and electricity are
 produced, traded and consumed. There are world markets for oil and coal,
 and well-integrated competitive markets for gas and electricity in Western
 Europe. Gas and electricity are transported and traded across markets
 under the assumption of ideal third-party access regimes for
 transportation and limited capacities in the transportation networks. It
 is found that relative to the data year 1996, radical liberalization
 reduces the average end-user price of natural gas by around 20%, and the
 average end-user price of electricity by around 50%. The supply of
 electricity increases by around 20%, mainly due to increased coal power
 production. After such liberalization, coal power emerges with the largest
 market share of electricity production in Western Europe. 
Journal: Applied Economics 
Pages: 2137-2149 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840310001641742 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001641742 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2137-2149




Template-Type: ReDIF-Article 1.0
Author-Name: Aju Fenn 
Author-X-Name-First: Aju 
Author-X-Name-Last: Fenn 
Author-Name: John Schroeter 
Author-X-Name-First: John 
Author-X-Name-Last: Schroeter 
Title: Cigarettes and addiction information: simulating the demand effects of the tobacco industry's 'conspiracy of silence' 
Abstract:
  Although cigarette manufacturers were aware of the addictive properties
 of nicotine as early as 1962, the information did not become available to
 the US public until 1979 when the Surgeon General disclosed it (US
 Department of Health, Education, and Welfare, 1979). This study simulates
 the impact this information would have had on the demand for cigarettes
 had it been released in 1962. The simulations build on past work by Fenn
 et al. (2001) who found evidence that the release of addiction information
 resulted in a structural shift in demand in 1979. In the present study,
 the econometric results from Fenn et al. (2001) are used to compute
 simulated time paths for state-level per capita consumption under the
 hypothetical scenario involving the earlier release of the addiction
 information. Using these simulated consumption paths; the projected
 reductions in cigarette sales revenue are calculated. These dollar figures
 provide a benchmark against which to judge the compensation amounts that
 the industry must pay because of recent tobacco lawsuit settlements. 
Journal: Applied Economics 
Pages: 2151-2159 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000290138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000290138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2151-2159




Template-Type: ReDIF-Article 1.0
Author-Name: Gyan Pradhan 
Author-X-Name-First: Gyan 
Author-X-Name-Last: Pradhan 
Author-Name: Zeljan Schuster 
Author-X-Name-First: Zeljan 
Author-X-Name-Last: Schuster 
Author-Name: Kamal Upadhyaya 
Author-X-Name-First: Kamal 
Author-X-Name-Last: Upadhyaya 
Title: Exchange rate uncertainty and the level of investment in selected South-east Asian countries  
Abstract:
  The effect of real exchange rate uncertainty on aggregate private
 investment in Indonesia, Malaysia, the Philippines and Thailand is
 examined using time series data from 1972-2000. Since the use of
 non-stationary time series data may produce spurious results, the data
 series are tested for stationarity using the augmented Dickey-Fuller and
 Phillips-Perron tests. After establishing the stationarity of the data
 series, cointegration tests are performed. The cointegration test results
 reject the hypothesis of no cointegration. Therefore, an error correction
 model is developed and estimated. The estimated results point to an
 inconclusive empirical relationship between real exchange rate volatility
 and aggregate private investment. 
Journal: Applied Economics 
Pages: 2161-2165 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000282498 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000282498 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2161-2165




Template-Type: ReDIF-Article 1.0
Author-Name: C. Stoforos 
Author-X-Name-First: C. 
Author-X-Name-Last: Stoforos 
Author-Name: G. Mergos 
Author-X-Name-First: G. 
Author-X-Name-Last: Mergos 
Title: Modelling EU tobacco policy reform 
Abstract:
  Smoking and tobacco use have acquired the dimensions of an epidemic.
 Recently, a decision by the European Parliament due to health concerns,
 calls for an elimination of production subsidies within five years. The
 purpose of this paper is to estimate the economic implications of the
 reduction of protection levels and to examine whether this policy change
 will act as an effective tool for less consumption. To this end, two
 scenarios are examined; namely, a Baseline Scenario, which assumes
 continuation of current policy measures, and a Policy Scenario where
 production support is eliminated. According to the results by 2010, EU
 tobacco consumption in the Baseline scenario is expected to show a modest
 decline and a more significant decrease in the Policy scenario. In
 addition, the EU self-sufficiency ratio is projected to decrease in the
 Policy scenario by almost 14% compared to the Baseline. Therefore, with
 increasing liberalization of international trade, reducing EU tobacco
 supply would mostly shift tobacco production to other, mainly, developing
 countries. Therefore, public policy that aims to reduce tobacco use may
 need to focus on demand. 
Journal: Applied Economics 
Pages: 2167-2175 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/000368404200068629 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200068629 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2167-2175




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Worthington 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Worthington 
Author-Name: Abbas Valadkhani 
Author-X-Name-First: Abbas 
Author-X-Name-Last: Valadkhani 
Title: Measuring the impact of natural disasters on capital markets: an empirical application using intervention analysis 
Abstract:
  The impact of natural disasters on the Australian equity market is
 examined. The data set employed consists of daily price and accumulation
 returns over the period 31 December 1982-1 January 2002 for the All
 Ordinaries Index (AOI) and a record of 42 severe storms, floods, cyclones,
 earthquakes and bushfires (wildfires) during this period with an insured
 loss in excess of A$5 mil. and/or total loss in excess of A$100 mil.
 Autoregressive moving average (ARMA) models are used to model the returns
 and the inclusion of news arrival, in the form of the natural disasters,
 is specified using intervention analysis. The results indicate that
 bushfires, cyclones and earthquakes have a major effect on market returns,
 unlike severe storms and floods. The net effects can be positive and/or
 negative with most effects being felt on the day of the event and with
 some adjustment in the days that follow. 
Journal: Applied Economics 
Pages: 2177-2186 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000282489 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000282489 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2177-2186




Template-Type: ReDIF-Article 1.0
Author-Name: Leone Leonida 
Author-X-Name-First: Leone 
Author-X-Name-Last: Leonida 
Author-Name: Carmelo Petraglia 
Author-X-Name-First: Carmelo 
Author-X-Name-Last: Petraglia 
Author-Name: Luis Murillo-Zamorano 
Author-X-Name-First: Luis 
Author-X-Name-Last: Murillo-Zamorano 
Title: Total factor productivity and the convergence hypothesis in the Italian regions 
Abstract:
  This article is aimed at testing the catching up hypothesis for the
 Italian regions. The use of Malmquist productivity indices allows to
 decompose productivity growth into technological progress and technical
 efficiency change, interpreted respectively as innovation and catching up
 measurements. The analysis leads to a conclusion that regional economies
 diverge at a decreasing rate. 
Journal: Applied Economics 
Pages: 2187-2193 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000282506 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000282506 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2187-2193




Template-Type: ReDIF-Article 1.0
Author-Name: David Griffiths 
Author-X-Name-First: David 
Author-X-Name-Last: Griffiths 
Title: The big problem of forecasting small change  
Abstract:
  The United States Mint recently reviewed approaches to forecasting the
 demand for new coin. This paper reports on methods used to determine
 fundamental attributes of the data, and uses these to help better
 determine appropriate model specification in order to better plan coin
 production. In particular, the debate regarding trend versus difference
 stationarity in macroeconomic trending data is considered. The interest in
 the present paper is limited to applying a well known unit root test
 procedure to an untested macrodata set - changes in US Coin demand - to
 see whether the test is useful in guiding the specification to improved
 forecast performance. It is found that the forecast results are somewhat
 sensitive to the way in which the data are seasonally adjusted, and
 lessons learned from this 'case study' indicate that unit root tests are
 useful in guiding model specification. 
Journal: Applied Economics 
Pages: 2195-2207 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000306932 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000306932 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2195-2207




Template-Type: ReDIF-Article 1.0
Author-Name: Mustapha Kamel Nabli 
Author-X-Name-First: Mustapha Kamel 
Author-X-Name-Last: Nabli 
Author-Name: Marie-Ange Veganzones-Varoudakis 
Author-X-Name-First: Marie-Ange 
Author-X-Name-Last: Veganzones-Varoudakis 
Title: How does exchange rate policy affect manufactured exports in MENA countries? 
Abstract:
  This paper shows that, during the 1970s and 1980s, MENA economies were
 characterized by a significant overvaluation of their currency. This
 overvaluation has had a cost in terms of competitiveness. To determine the
 degree of overvaluation of the MENA currencies, an indicator of
 misalignment was developed based on the estimation of an equilibrium
 exchange rate (Edwards, Exchange Rate Misalignment in Developing
 Countries, The Johns Hopkins University Press, Baltimore, 1988). The
 empirical work was based on a panel of 53 developing countries, ten of
 which are MENA economies. Although overvaluation decreased in the 1990s,
 probably due to flexibilization of the exchange rate regime in some MENA
 countries and to better macroeconomic management in others, misalignment
 remained higher than in other regions. This may be explained by the MENA
 countries' delay in adopting more flexible exchange rates, as well as in
 reforming their economies. In terms of competitiveness, the estimation of
 an export equation has shown that manufactured exports have been
 significantly affected by the overvaluation of the MENA currencies.
 Countries that already had a more diversified economy benefited more from
 the decreased overvaluation in the 1990s. These countries also saw a
 continuous rise in diversification of their manufactured exports,
 resulting from the significant decline in exchange rate misalignment. 
Journal: Applied Economics 
Pages: 2209-2219 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000271373 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000271373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2209-2219




Template-Type: ReDIF-Article 1.0
Author-Name: Yin Zhang 
Author-X-Name-First: Yin 
Author-X-Name-Last: Zhang 
Author-Name: Guang Hua Wan 
Author-X-Name-First: Guang Hua 
Author-X-Name-Last: Wan 
Title: Liquidity constraint, uncertainty and household consumption in China 
Abstract:
  This paper investigates the changing roles played by liquidity constraint
 and uncertainty in accounting for the dynamism of Chinese household
 consumption behaviour. Starting from the Euler equation-based model of
 Robert Hall, a framework encompassing an array of consumption models is
 developed and applied to Chinese data over the period 1961-1998. Empirical
 results reveal a regime shift in the early 1980s and imply that increases
 in the proportion of liquidity constrained consumers and increased
 uncertainty in the post-reform period are responsible for the extremely
 low consumption or high savings in China. Moreover, it is found that
 interactions between liquidity constraint and uncertainty reinforce each
 other's effects and lead to declines in both the level and growth of
 consumption. 
Journal: Applied Economics 
Pages: 2221-2229 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000266991 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266991 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2221-2229




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Grant Coble-Neal 
Author-X-Name-First: Grant 
Author-X-Name-Last: Coble-Neal 
Title: A cost of living index incorporating a network effect 
Abstract:
  This paper constructs a cost of living index (COLI) that incorporates a
 network effect. While in this instance the application is to the
 telecommunications sector, the COLI are applicable more generally to
 network industries. The COLI permit valid welfare comparisons to be made
 by individual, region and country. Illustrative COLI estimates are
 provided for selected OECD member country telecommunications market data. 
Journal: Applied Economics 
Pages: 2231-2235 
Issue: 19 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000266982 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266982 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2231-2235




Template-Type: ReDIF-Article 1.0
Author-Name: Monica Oliveira 
Author-X-Name-First: Monica 
Author-X-Name-Last: Oliveira 
Title: Modelling demand and supply influences on utilization: A flow demand model to predict hospital utilization at the small area level 
Abstract:
  This study outlines a model to predict hospital utilization at the small
 area level within a National Health Service (NHS) institutional context.
 The proposed approach departs from alternative analyses based on
 utilization flows of hospital care between a local population and a
 hospital. A flow demand model is outlined that relates flow demand to
 utilization flows; models the interaction between hospital supply and
 utilization of alternative hospitals; captures the process of demand for
 hospital care, with special attention given to the role of other health
 care sectors, to the organizational and institutional context of the
 hospital system and to geographic variations. The flow approach partly
 overcomes the problem of dealing with simultaneity of determination
 between supply and demand. A two-part econometric model suitable to
 estimate the flow demand model for prediction purposes is tested and
 applied to the Portuguese health care system. The results show the model
 to be robust and to provide key information for defining future hospital
 policies at the central level. 
Journal: Applied Economics 
Pages: 2237-2251 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000280553 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280553 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2237-2251




Template-Type: ReDIF-Article 1.0
Author-Name: Joan Costa-Font 
Author-X-Name-First: Joan 
Author-X-Name-Last: Costa-Font 
Author-Name: Joan Gil 
Author-X-Name-First: Joan 
Author-X-Name-Last: Gil 
Title: Social interactions and the contemporaneous determinants of individuals' weight 
Abstract:
  Obesity and overweight are central issues in the public health debate in
 most developed countries. In this debate, some of the socio-economic
 determinants of obesity and overweight are still relatively unexplored.
 This paper presents an empirical examination of the possible influence of
 social interactions on contemporaneous obesity and (over)underweight. A
 joint estimation model for obesity and self-image is applied to a sample
 for Spain taken from the European Union household panel for 1998. The
 results suggest that obesity might be in part a social phenomenon
 connected to individuals' social life. 
Journal: Applied Economics 
Pages: 2253-2263 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000280562 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280562 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2253-2263




Template-Type: ReDIF-Article 1.0
Author-Name: Kellie Curry Raper 
Author-X-Name-First: Kellie Curry 
Author-X-Name-Last: Raper 
Author-Name: Corinna Noelke 
Author-X-Name-First: Corinna 
Author-X-Name-Last: Noelke 
Title: Determining market power exertion between buyers and sellers: are nonparametrics a viable alternative? 
Abstract:
  A review of recent literature reveals the development of several
 deterministic non-parametric (DNP) tests of market power. The performance
 of selected DNP market power tests is ascertained to determine their
 usefulness as an alternative to data-hungry parametric market power tests.
 This assessment is carried out through implementation of Monte Carlo
 experiments using data sets from ten known market structures. Only two of
 the six DNP tests appear able to satisfactorily identify market power. 
Journal: Applied Economics 
Pages: 2265-2274 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000281570 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2265-2274




Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Bugamelli 
Author-X-Name-First: Matteo 
Author-X-Name-Last: Bugamelli 
Author-Name: Patrizio Pagano 
Author-X-Name-First: Patrizio 
Author-X-Name-Last: Pagano 
Title: Barriers to investment in ICT 
Abstract:
  This paper studies the complementarity between investment in information
 and communication technologies (ICT) and the related investment in human
 and organizational capital. Using firm-level data taken from a large
 sample of Italian manufacturing firms, an ICT marginal product much higher
 than its user cost is estimated. It is then argued that missing
 complementary investments may have acted as barriers to investment in ICT.
 Results support the conjecture that the marginal product excess over the
 user cost is due to those firms that did not complement their ICT
 investment with an increase in the human capital of their labour force and
 with a reorganization of the workplace. 
Journal: Applied Economics 
Pages: 2275-2286 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000270031 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000270031 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2275-2286




Template-Type: ReDIF-Article 1.0
Author-Name: Lyubov Kurkalova 
Author-X-Name-First: Lyubov 
Author-X-Name-Last: Kurkalova 
Author-Name: Catherine Kling 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Kling 
Author-Name: Jinhua Zhao 
Author-X-Name-First: Jinhua 
Author-X-Name-Last: Zhao 
Title: Value of agricultural non-point source pollution measurement technology: assessment from a policy perspective 
Abstract:
  The development of accurate non-point source pollution assessment
 technologies allows the implementation of more efficient policies than can
 be undertaken in their absence. This study estimates the value of accurate
 measurement technology by estimating the gains from implementing a more
 efficient policy, one that targets agricultural non-point source emission
 reductions at the field scale but requires accurate field scale
 measurement technology, relative to a practice-based policy that can be
 implemented in the absence of such technology. For the environmental
 benefit of carbon sequestration, large cost savings are found due to
 improved targeting of conservation tillage subsidies for the state of
 Iowa. The ability of the government to cost discriminate is found to have
 little impact on the value of accurate measurement technology. 
Journal: Applied Economics 
Pages: 2287-2298 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840412331313512 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331313512 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2287-2298




Template-Type: ReDIF-Article 1.0
Author-Name: Bethany Peters 
Author-X-Name-First: Bethany 
Author-X-Name-Last: Peters 
Title: Is there a wage bonus from drinking? Unobserved heterogeneity examined 
Abstract:
  While the result that drinkers earn more than abstainers has been
 remarkably persistent, only one paper in the literature on drinking and
 earnings has been written where individual fixed effects are included.
 This study improves the current literature by utilizing a much longer
 panel and focuses on the low end of drinking while controlling for
 unobserved heterogeneity with the inclusion of individual specific
 effects. It is found that while OLS specifications yield a positive
 significant coefficient on current drinking, even when a rich set of
 covariates is controlled for, including individual fixed effects renders
 the coefficient statistically insignificant. 
Journal: Applied Economics 
Pages: 2299-2315 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000280526 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280526 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2299-2315




Template-Type: ReDIF-Article 1.0
Author-Name: C. Du Bois 
Author-X-Name-First: C. Du 
Author-X-Name-Last: Bois 
Author-Name: R. Caers 
Author-X-Name-First: R. 
Author-X-Name-Last: Caers 
Author-Name: M. Jegers 
Author-X-Name-First: M. 
Author-X-Name-Last: Jegers 
Author-Name: C. Schepers 
Author-X-Name-First: C. 
Author-X-Name-Last: Schepers 
Author-Name: S. De Gieter 
Author-X-Name-First: S. 
Author-X-Name-Last: De Gieter 
Author-Name: R. Pepermans 
Author-X-Name-First: R. 
Author-X-Name-Last: Pepermans 
Title: Agency problems and unrelated business income of non-profit organizations: an empirical analysis 
Abstract:
  Nonprofit organizations are traditionally assumed to dislike commercial
 activities. In the USA, they are however allowed to engage in commercial
 activities, but the income they derive from these activities is then
 subject to the so-called 'unrelated business income tax'. If NPOs do
 indeed dislike commercial income, then why do they engage in these
 activities? Using a data set of 2103 US NPOs, this study suggests that the
 presence of agency problems inside the organization can at least provide
 an explanation for the occurrence of 'unrelated business income'. 
Journal: Applied Economics 
Pages: 2317-2326 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000281552 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2317-2326




Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan 
Author-X-Name-First: Saroja 
Author-X-Name-Last: Selvanathan 
Author-Name: E. A. Selvanathan 
Author-X-Name-First: E. A. 
Author-X-Name-Last: Selvanathan 
Title: Empirical regularities in South African consumption patterns 
Abstract:
  This article investigates a number of empirical regularities in the South
 African consumption patterns. The data support the following empirical
 regularities: (1) variability in consumption systematically exceeds the
 variability in prices; (2) law of demand; (3) income flexibility is about
 -0.5; (4) Engel's law; and (5) the demand hypotheses, demand homogeneity
 and Slutsky symmetry are acceptable. In contrast to the findings for a
 number of other countries, another important empirical regularity that
 consumer's utility function is additive is rejected for the South African
 consumers. Based on the implied demand elasticity estimates from the
 preferred model, it is found that food, housing and medical care are
 necessities, and clothing, furniture, transport and recreation are
 luxuries and demand for all the commodities are price inelastic. 
Journal: Applied Economics 
Pages: 2327-2333 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000280328 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2327-2333




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Benarroch 
Author-X-Name-First: Michael 
Author-X-Name-Last: Benarroch 
Author-Name: Hugh Grant 
Author-X-Name-First: Hugh 
Author-X-Name-Last: Grant 
Title: The interprovincial migration of Canadian physicians: does income matter? 
Abstract:
  This study applies a multinomial logit model of human-capital migration
 to examine the factors influencing the movement of physicians within
 Canadian provinces between 1976 and 1992. The empirical investigation
 covers general practitioners and specialists (it excludes
 interns/residents) between seven regions (Atlantic Canada, Quebec,
 Ontario, Manitoba, Saskatchewan, Alberta and British Columbia). The
 results suggest that differences in real income have a positive and
 significant effect on a physician's decision to migrate form one province
 to another. Provinces with the highest after tax income, highest
 expenditure per physician, and highest fee-per-service rates have the
 highest net rate of in-migration. Income differences are however, not the
 only factor influencing a physician's choice to move. Working conditions
 within a province, which we proxy with the number of hospitals beds and
 health expenditures per capita, are also important factors. Likewise, the
 ratio of rural to urban population, distance between the major city in
 each province and provincial population all have a negative impact on a
 physician's migration choice. Finally, a dummy variable is used to allow
 for language differences between Quebec and the rest of the provinces and
 find that language differences have a significant and negative impact on a
 physician decision to migrate. 
Journal: Applied Economics 
Pages: 2335-2345 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000281543 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281543 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2335-2345




Template-Type: ReDIF-Article 1.0
Author-Name: Alexandra Krystalogianni 
Author-X-Name-First: Alexandra 
Author-X-Name-Last: Krystalogianni 
Author-Name: George Matysiak 
Author-X-Name-First: George 
Author-X-Name-Last: Matysiak 
Author-Name: Sotiris Tsolacos 
Author-X-Name-First: Sotiris 
Author-X-Name-Last: Tsolacos 
Title: Forecasting UK commercial real estate cycle phases with leading indicators: a probit approach 
Abstract:
  This paper examines the significance of widely used leading indicators of
 the UK economy for predicting the cyclical pattern of commercial real
 estate performance. The analysis uses monthly capital value data for UK
 industrials, offices and retail from the Investment Property Databank
 (IPD). Prospective economic indicators are drawn from three sources
 namely, the series used by the US Conference Board to construct their UK
 leading indicator and the series deployed by two private organisations,
 Lombard Street Research and NTC Research, to predict UK economic activity.
 We first identify turning points in the capital value series adopting
 techniques employed in the classical business cycle literature. Probit
 models are then estimated using the leading economic indicators as
 independent variables and forecast the probability of different phases of
 capital values, that is, periods of declining and rising capital values.
 The forecast performance of the models is tested and found to be
 satisfactory. The predictability of lasting directional changes in
 property performance represents a useful tool for real estate investment
 decision-making. 
Journal: Applied Economics 
Pages: 2347-2356 
Issue: 20 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000280544 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280544 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2347-2356




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Fink 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Fink 
Author-Name: Alan Marco 
Author-X-Name-First: Alan 
Author-X-Name-Last: Marco 
Author-Name: Jonathan Rork 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Rork 
Title: Lotto nothing? The budgetary impact of state lotteries 
Abstract:
  Lottery revenues are often touted as an independent revenue source for
 states. Using 32 years of state financial data, the fallacy of such
 thinking is demonstrated. Being the first to control for the
 self-selection of being a lottery state, it is found that overall tax
 revenues decline with increased lottery sales. Moreover, it is discovered
 that this decline is driven by a decrease in revenues from general sales
 and excise taxes, which is only partially offset by increases in income
 tax receipts. Such findings are attributed to a combination of behavioural
 and political responses following the lottery's implementation. 
Journal: Applied Economics 
Pages: 2357-2367 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000271387 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000271387 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2357-2367




Template-Type: ReDIF-Article 1.0
Author-Name: Eon-Seon Rym 
Author-X-Name-First: Eon-Seon 
Author-X-Name-Last: Rym 
Author-Name: Faik Koray 
Author-X-Name-First: Faik 
Author-X-Name-Last: Koray 
Title: Average marginal tax rates in the UK economy 
Abstract:
  Using a known methodology, this paper calculates the average tax rate
 (ATR) and three different average marginal tax rate (AMTR) measures for
 the UK. The three different AMTR measures are greater than the ATR in the
 same year because of the progressive tax system in the UK. Barro's AMTR
 measure weighted by total income is greater than Barro's AMTR measure
 weighted by number of returns because of the unequal distribution of
 income, and Barro's AMTR measure weighted by total income exceeds Seater's
 AMTR measure because total income before tax in Seater's AMTR measure is
 greater than total income after tax in Barro's AMTR measure. 
Journal: Applied Economics 
Pages: 2369-2372 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000286106 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000286106 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2369-2372




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Creel 
Author-X-Name-First: Michael 
Author-X-Name-Last: Creel 
Title: Modified Hausman tests for inefficient estimators 
Abstract:
  Widely-used estimators such as the generalized method of moments (GMM)
 and quasi-maximum likelihood (QML) are not efficient in general. This
 study shows how the Hausman specification test may easily be corrected to
 be used with inefficient estimators. It introduces a related test that has
 better power, and it points out the relationship to the GMM criterion test
 of specification of overidentified models. A brief simulation illustrates
 the results. 
Journal: Applied Economics 
Pages: 2373-2376 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000291281 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291281 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2373-2376




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Spinelli 
Author-X-Name-First: Michael 
Author-X-Name-Last: Spinelli 
Author-Name: George Canavos&#x2020; 
Author-X-Name-First: George 
Author-X-Name-Last: Canavos&#x2020; 
Author-Name: Douglas Brown 
Author-X-Name-First: Douglas 
Author-X-Name-Last: Brown 
Title: An analysis of the variation in billing charges of medical providers: causes and implications 
Abstract:
  The purpose of this paper is to review the billing methodology of
 physicians that participate in fee-for-service plans, and, using a data
 set of billing charges, determine the significance of the variation in
 fees by providers of certain kind of procedures. Providers use cost-plus
 pricing and take into account the medical aspects of the services and
 market forces. Using the Current Procedural Terminologies (CPT)
 established by the American Medical Association, the providers define the
 medical services by the six digit CPT code, and bill accordingly. The
 statistical evidence shows that there is some evidence that fees of
 providers who bill under the 'medicine' codes tend to exhibit more
 variation in charges than other procedures. 
Journal: Applied Economics 
Pages: 2377-2384 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000286098 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000286098 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2377-2384




Template-Type: ReDIF-Article 1.0
Author-Name: Tomoya Suzuki 
Author-X-Name-First: Tomoya 
Author-X-Name-Last: Suzuki 
Title: Credit channel of monetary policy in Japan: resolving the supply versus demand puzzle 
Abstract:
  The credit view is that a monetary tightening affects the real economy by
 shifting the supply schedule of bank credit left. While bank credit
 typically contracts following a monetary tightening, the financial
 contraction does not necessarily mean a shift of the supply schedule.
 Testing the credit view requires the identification of the shifts of the
 demand and supply schedules of credit. Using an original approach, this
 study shows that the credit view is supported for Japan. The credit view
 is, however, composed of two different views, namely the lending view and
 the balance-sheet view. While the balance-sheet view implies that the
 cutback of lending has no impact on the real economy, the lending view
 implies independent impacts of the cutback. Given the acceptance of the
 credit view, this study further attempts to test the balance-sheet view
 against the lending view. 
Journal: Applied Economics 
Pages: 2385-2396 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000280517 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280517 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2385-2396




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Rainey 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Rainey 
Author-Name: Olga Murova 
Author-X-Name-First: Olga 
Author-X-Name-Last: Murova 
Title: Factors influencing education achievement 
Abstract:
  This study sets out to examine the factors that influence human capital
 formation in predominately rural communities. The results indicated that
 parents' educational attainment greatly influences the quality of
 education for their children. Thus, consolidating smaller poor schools in
 which the parents have limited education above primary and secondary
 schools, will not likely lead to much if any improvement in students' test
 scores. 
Journal: Applied Economics 
Pages: 2397-2404 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/00036840404200020544 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840404200020544 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2397-2404




Template-Type: ReDIF-Article 1.0
Author-Name: E. A. Selvanathan 
Author-X-Name-First: E. A. 
Author-X-Name-Last: Selvanathan 
Author-Name: S. Selvanathan 
Author-X-Name-First: S. 
Author-X-Name-Last: Selvanathan 
Title: Economic and demographic factors in Australian alcohol demand 
Abstract:
  In the last two decades, total (pure) alcohol consumption in Australia
 has declined by about 31% and currently it is at the same level as it was
 in the 1950s. Australians consumed about 10 litres of pure alcohol per
 person in 1982 and now the level has declined to about 7 litres of pure
 alcohol per person. During the last four decades, per capita beer
 consumption has reached a peak of 140 litres in 1975 and has fallen to a
 low 93 litres in 1999; wine consumption has increased four-fold while
 spirits consumption has stayed around the same level. This paper, using
 the Australian consumption data for beer, wine and spirits for the period
 1956-1999, aims to explain the change in consumption patterns of beer,
 wine and spirits by considering the effects due to changes in economic and
 demographic factors. The results show that while income and prices
 significantly influence the consumption patterns of alcohol, the
 increasing Australian elderly population also plays an important role. 
Journal: Applied Economics 
Pages: 2405-2417 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000280346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2405-2417




Template-Type: ReDIF-Article 1.0
Author-Name: Kirsi Mukkala 
Author-X-Name-First: Kirsi 
Author-X-Name-Last: Mukkala 
Title: Agglomeration economies in the finnish manufacturing sector 
Abstract:
  Regional concentration of population and economic activity is a common
 phenomenon both in Finland and the other most developed countries, which
 refers to the existence of agglomeration economies. Two types of economies
 are usually recognized to be important: specialization (Marshall
 externalities) and diversity (Jacobs externalities) economies. The former
 refer to the geographical concentration of a specific industry and the
 latter to the industrial diversity of the local system. This study
 examines the relationship between agglomeration economies and regional
 productivity in the manufacturing sector in Finland. A distinction is made
 between the effects of urbanization and localization economies. The
 production function method is applied to the manufacturing sub-sectors in
 the 83 NUTS 4-level regions in 1995 and 1999. The results support the
 regional specialization more than diversification even if some differences
 can be seen between the manufacturing sub-sectors. 
Journal: Applied Economics 
Pages: 2419-2427 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000287655 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287655 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2419-2427




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Berument 
Author-Name: N. Nergiz Dincer 
Author-X-Name-First: N. Nergiz 
Author-X-Name-Last: Dincer 
Title: The effects of exchange rate risk on economic performance: the Turkish experience  
Abstract:
  This study examines the effects of real exchange rate risk on the
 economic performance for an emerging, small open economy: Turkey. When the
 ratios of the total foreign exchange liabilities of the Central Bank of
 the Republic of Turkey (CBRT) to: (1) total reserves; (2) the CBRT's
 reserves; and (3) the CBRT's total Turkish lira liabilities are taken
 proxy of exchange rate risk, the empirical evidence suggests that the
 increase in exchange rate risk causes a depreciation in the real exchange
 rate, an increase in prices and a decrease in output. 
Journal: Applied Economics 
Pages: 2429-2441 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000287637 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287637 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2429-2441




Template-Type: ReDIF-Article 1.0
Author-Name: Mette Wik 
Author-X-Name-First: Mette 
Author-X-Name-Last: Wik 
Author-Name: Tewodros Aragie Kebede 
Author-X-Name-First: Tewodros Aragie 
Author-X-Name-Last: Kebede 
Author-Name: Olvar Bergland 
Author-X-Name-First: Olvar 
Author-X-Name-Last: Bergland 
Author-Name: Stein Holden 
Author-X-Name-First: Stein 
Author-X-Name-Last: Holden 
Title: On the measurement of risk aversion from experimental data 
Abstract:
  Attitudes towards risk are measured for households in Northern Zambia
 using an experimental gambling approach with real payoffs that at maximum
 were equal to 30% of average total annual income per capita. The results
 of the experiment show decreasing absolute risk aversion and increasing
 partial risk aversion. Determinants of risk aversion are investigated
 using random effects interval regression model exploiting the panel data
 structure of the repeated experiments. Wealth indicator variables are
 found to be significant, and partial relative risk aversion decreases as
 wealth increases. Females are found to be more risk averse than males. 
Journal: Applied Economics 
Pages: 2443-2451 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000280580 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2443-2451




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Author-Name: David Berri 
Author-X-Name-First: David 
Author-X-Name-Last: Berri 
Title: Another look at competition: a regime-switching aproach 
Abstract:
  Measuring the level of competition in an industry is an empirical task
 with a lengthy history. Many of the traditional measures offer a snapshot
 of the industry, where the distribution of market share is examined at a
 given point in time. The purpose of this inquiry is to utilize a
 regime-switching model which highlights the importance of intra-industry
 movement. The empirical results suggest that even in an environment where
 the distribution of market share is improving, an industry can still be
 persistently dominated by the same collection of leading firms. 
Journal: Applied Economics 
Pages: 2453-2460 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000280571 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280571 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2453-2460




Template-Type: ReDIF-Article 1.0
Author-Name: Daryl Collins 
Author-X-Name-First: Daryl 
Author-X-Name-Last: Collins 
Author-Name: Shana Gavron 
Author-X-Name-First: Shana 
Author-X-Name-Last: Gavron 
Title: Channels of financial market contagion 
Abstract:
  This study aims to fill a gap in the current literature by determining
 which channels of financial contagion are the most significant in
 transmitting crises between countries. Initial results, using &#x3c7;2
 contingency tables, indicate that there is a significant relationship
 between contagion and the inflation rate and between contagion and
 financial liquidity. A simultaneous comparison of the channels is then
 performed using a series of best subset logit regressions. These suggest
 that a combination of high inflation and an emerging market classification
 form the most significant subset in increasing the probability of a
 contagious event. 
Journal: Applied Economics 
Pages: 2461-2469 
Issue: 21 
Volume: 36 
Year: 2004 
X-DOI: 10.1080/0003684042000287628 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287628 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2461-2469




Template-Type: ReDIF-Article 1.0
Author-Name: M. R. Bhatia 
Author-X-Name-First: M. R. 
Author-X-Name-Last: Bhatia 
Title: From evidence to calibration for starting point bias: willingness to pay for treated mosquito nets in Gujarat, India 
Abstract:
  This study uses a bidding format to assess households' willingness to pay
 (WTP) for treated mosquito nets (TMNs). It tests for starting point bias
 by allocating respondents randomly to three different starting bids (Rs
 50, Rs 75 and Rs 100) and following this response with one further closed
 bid offer and a final open-ended WTP question. There is a clear presence
 of starting point bias. By undertaking a simulated market experiment
 (SME), this study attempts to measure the magnitude and direction of the
 bias so that the necessary calibration factor can be calculated with which
 to adjust the mean willingness to pay value. It was observed that the true
 mean WTP adjusted for starting point bias (Rs 56.26) is not very different
 from the unadjusted mean WTP of Rs 57.38. It is concluded that the
 presence of starting point bias, even in carefully designed WTP studies
 using a bidding format, cannot be ruled out. However, the existence of
 starting point bias itself does not reflect the magnitude of the problem.
 It is recommended that future WTP studies using a bidding format not only
 look for starting point bias but also attempt to measure its magnitude. 
Journal: Applied Economics 
Pages: 1-7 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000291317 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291317 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:1-7




Template-Type: ReDIF-Article 1.0
Author-Name: John Hey 
Author-X-Name-First: John 
Author-X-Name-Last: Hey 
Author-Name: Jinkwon Lee 
Author-X-Name-First: Jinkwon 
Author-X-Name-Last: Lee 
Title: Do subjects remember the past? 
Abstract:
  In many experiments, experimenters use the random lottery incentive
 mechanism and ask many questions to each subject. That is, at the end of
 the experiment, just one of the questions is picked at random, and the
 subject paid on the basis of their answer to this one question. The idea
 is that subjects should separate the various questions and reply to each
 as if it were a separate question. This procedure is methodologically
 sound if the subjects' preferences obey Expected Utility (EU) theory
 (which implies a form of separation), but if they do not, this incentive
 mechanism is open to criticism. Indeed many referees use this argument
 against the research: they argue that subjects do not consider questions
 separately. If the questions are revealed to the subjects one by one, then
 the appropriate alternative hypothesis is that their behaviour evolves
 with the questions. Here this hypothesis is tested: that the questions
 already answered affect the answers to the subsequent questions. The
 analysis shows that this is generally not the case. This finding is of
 importance not only for the experimental community, but also for the wider
 community of economists - who typically, when analysing economic data,
 have to assume some kind of separation of present from past behaviour. The
 analysis indicates that such an assumption is defensible. An experimental
 defence of a procedure used widely in non-experimental empirical economics
 research is provided. 
Journal: Applied Economics 
Pages: 9-18 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000286124 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000286124 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:9-18




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Graham 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Graham 
Author-Name: Stephen Glaister 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Glaister 
Title: Decomposing the determinants of road traffic demand 
Abstract:
  This study presents a decomposition of the basic fundamental determinants
 of road traffic and fuel demand. A general framework is proposed as a
 means of analysing the impacts of changes in prices and income on the
 demand for fuel and traffic volume. The objective is to provide a general
 basis for comparing different road traffic elasticity estimates and for
 understanding how a variety of different factors work together to create
 overall road traffic and fuel demand responses. The study emphasizes
 relationships between different price and income elasticity measures and
 uses estimates from the literature to evaluate the main determinants of
 demand including some previously unobserved effects. 
Journal: Applied Economics 
Pages: 19-28 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000291263 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291263 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:19-28




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Goodhart 
Author-X-Name-First: Charles 
Author-X-Name-Last: Goodhart 
Author-Name: Boris Hofmann 
Author-X-Name-First: Boris 
Author-X-Name-Last: Hofmann 
Title: The IS curve and the transmission of monetary policy: is there a puzzle? 
Abstract:
  In this paper, the performance of the New Keynesian IS curve for the G7
 countries is assessed. It is found that there is an IS puzzle for both the
 purely backward-looking as well as for the forward-looking IS curve. The
 real interest rate does not have a significantly negative effect on the
 output gap. Based on an extended specification of the IS curve, also
 including asset prices and monetary aggregates, a significantly negative
 interest rate effect on aggregate demand is found for all countries. This
 finding suggests that a richer specification of the IS curve in empirical
 work may be necessary in order to obtain an unbiased estimate of the
 effect of monetary policy on aggregate demand. 
Journal: Applied Economics 
Pages: 29-36 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000280355 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280355 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:29-36




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Wood 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Wood 
Title: Investment interdependence and the coordination of lumpy investments: evidence from the British brick industry 
Abstract:
  The brick industry is characterized by regional markets, lumpy capacity
 increments and high fixed costs. In such an industry, the coordination of
 rival expansions in capacity can be crucial to the profitability of those
 expansions. Evidence from the British brick industry suggests that excess
 investments are generally avoided, but there is little support for
 existing theories to explain how this is achieved. The explanation for how
 coordination failures are avoided is based on firm heterogeneity, the
 regional dimension to the investment decision and the prospects for, and
 consequences of, growth by acquisition. 
Journal: Applied Economics 
Pages: 37-49 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000287646 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:37-49




Template-Type: ReDIF-Article 1.0
Author-Name: Severine Blaise 
Author-X-Name-First: Severine 
Author-X-Name-Last: Blaise 
Title: On the link between Japanese ODA and FDI in China: a microeconomic evaluation using conditional logit analysis 
Abstract:
  This study investigates the effectiveness of Japan's official development
 assistance in promoting foreign direct investments inflows in the case of
 the People's Republic of China. Conditional logit analysis using province
 level statistics from 1980 to 1999, shows that Japanese aid flows did have
 a significant positive impact on private investors location choice even
 though other profit-maximizing factors such as the level of economic
 activity had a leading spillover effect. In a context of growing scarcity
 of aid, the study concludes by asserting the importance of a complementary
 process in which foreign aid is aimed at enhancing the development of
 infrastructures, acting as a pre-requisite for future direct investments.
 Finally, Japan providing an interesting case study, we stress the need for
 a better cooperation between public and private sectors in development
 assistance programmes. 
Journal: Applied Economics 
Pages: 51-55 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000281534 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281534 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:51-55




Template-Type: ReDIF-Article 1.0
Author-Name: Diane Sk&#xe5;tun 
Author-X-Name-First: Diane 
Author-X-Name-Last: Sk&#xe5;tun 
Author-Name: Emanuela Antonazzo 
Author-X-Name-First: Emanuela 
Author-X-Name-Last: Antonazzo 
Author-Name: Anthony Scott 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Scott 
Author-Name: Robert Elliott 
Author-X-Name-First: Robert 
Author-X-Name-Last: Elliott 
Title: The supply of qualified nurses: a classical model of labour supply 
Abstract:
  The need to ensure adequate numbers of nurses is a key requirement of the
 current modernization of the UK NHS. However, it is unclear how effective
 wages are as an instrument to maintain or increase the nursing workforce,
 both in terms of absolute numbers and in the number of whole time
 equivalents. This study sets out to estimate a classical model of labour
 supply for British qualified married or cohabiting nurses and midwives,
 looking at both the participation decision and the hours of work supplied.
 Data are from the Quarterly Labour Force Survey over the years 1999-2000.
 Participation and hours of work are found to be inelastic with respect to
 own wage. These results suggest that increasing the wage would only have a
 moderate effect on labour supply. Interestingly, there is no significant
 statistical difference between having a child of nursery age (3-4) and
 having a child of school age (5-15) on participation and hours supplied.
 This suggests that recent policy initiatives to increase female labour
 force participation, through the provision of free nursery places, has
 been successful. Preliminary analysis of a split private and public sector
 sample suggests that hours supplied are completely inelastic with respect
 to wages in the public sector. 
Journal: Applied Economics 
Pages: 57-65 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000291272 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291272 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:57-65




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Ginebri 
Author-X-Name-First: Sergio 
Author-X-Name-Last: Ginebri 
Author-Name: Bernardo Maggi 
Author-X-Name-First: Bernardo 
Author-X-Name-Last: Maggi 
Author-Name: Manuel Turco 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Turco 
Title: The automatic reaction of the Italian government budget to fundamentals: an econometric analysis 
Abstract:
  The paper offers a new estimate of the sensitivity of Italy's primary
 budget balance to macroeconomic variables. The analysis has distinguishing
 features: detailed itemization of public finance aggregates; close
 attention to the statistical properties of the time series; and joint
 estimation of elasticities with respect to both real GDP and inflation.
 First, the economic variables driving the automatic component were chosen.
 Second, when possible, a macroeconomic base was associated with each
 public finance item. Third, each tax base was regressed on the driving
 economic variables. Fourth, each budget item that was supposed to include
 an automatic component was regressed either on its own base or directly on
 the economic variables affecting the automatic components. The effects on
 public budget are simulated to investigate the consequences of a change in
 nominal and real GDP. 
Journal: Applied Economics 
Pages: 67-81 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000291326 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291326 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:67-81




Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan 
Author-X-Name-First: Saroja 
Author-X-Name-Last: Selvanathan 
Author-Name: E. A. Selvanathan 
Author-X-Name-First: E. A. 
Author-X-Name-Last: Selvanathan 
Title: Is utility additive? Further evidence 
Abstract:
  This paper investigates the question of additive structure of the utility
 function using the data for nine broad commodity groups from 45 countries.
 Further evidence is presented in support of the preference independent
 utility structure. 
Journal: Applied Economics 
Pages: 83-86 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000280337 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280337 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:83-86




Template-Type: ReDIF-Article 1.0
Author-Name: David Cantarero 
Author-X-Name-First: David 
Author-X-Name-Last: Cantarero 
Author-Name: Marta Pascual 
Author-X-Name-First: Marta 
Author-X-Name-Last: Pascual 
Author-Name: Jose Maria Sarabia 
Author-X-Name-First: Jose Maria 
Author-X-Name-Last: Sarabia 
Title: Effects of income inequality on population health: new evidence from the european community household panel 
Abstract:
  This study provides new evidence in order to explore the relationship
 between income inequality and health in the European Union countries using
 new data from the European Community Household Panel (ECHP). A variety of
 different specifications were tried using diverse dependent variables such
 as life expectancy at birth and child mortality. The results show new
 support to the influence of income inequality on health indicators using
 aggregate data and panel techniques. 
Journal: Applied Economics 
Pages: 87-91 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000291290 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291290 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:87-91




Template-Type: ReDIF-Article 1.0
Author-Name: Samih Antoine Azar 
Author-X-Name-First: Samih Antoine 
Author-X-Name-Last: Azar 
Title: Econometric diagnostics to distinguish between the IS curve and the Ricardian equivalence 
Abstract:
  In this article two different specifications of a macroeconomic model are
 analysed. The first model is the Keynesian IS (Investments-savings) curve.
 The second is derived from the New Classical Ricardian equivalence. Since
 the two specifications are observationally equivalent, including the same
 set of variables, the econometric diagnostics of the regression equations
 are used to differentiate between the two of them. Six statistical
 criteria are compared: serial correlation, heteroscedasticity,
 specification tests, fit, randomness, and normality. The results support
 much better Ricardian equivalence than the Keynesian IS model. 
Journal: Applied Economics 
Pages: 93-98 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000291885 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291885 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:93-98




Template-Type: ReDIF-Article 1.0
Author-Name: Constantina Kottaridi 
Author-X-Name-First: Constantina 
Author-X-Name-Last: Kottaridi 
Title: The 'core-periphery' pattern of FDI-led growth and production structure in the EU 
Abstract:
  The present study attempts to shed light on a central and
 under-investigated issue in the European integration debate, referring to
 the impact of foreign direct investment (FDI) in the growth process of EU
 countries and detecting the channels through which FDI can interact with
 host characteristics to raise income levels. Using an advanced econometric
 approach, i.e., the Arellano-Bond dynamic panel data estimation, it
 predicts a 'core-periphery' growth pattern, attributed to initial
 strengths and weaknesses of the regions, which, in turn, are responsible
 for attracting different types of foreign activity. Policy implications as
 to the provision of appropriate investment incentives and the development
 of a strong human resources base in periphery are then raised, in order
 for it to be able to compete internationally as a host to technology-based
 investments and reap the benefits associated with knowledge transfer. 
Journal: Applied Economics 
Pages: 99-113 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000291308 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291308 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:99-113




Template-Type: ReDIF-Article 1.0
Author-Name: Aki Kangasharju 
Author-X-Name-First: Aki 
Author-X-Name-Last: Kangasharju 
Author-Name: Jaakko Pehkonen 
Author-X-Name-First: Jaakko 
Author-X-Name-Last: Pehkonen 
Author-Name: Sari Pekkala 
Author-X-Name-First: Sari 
Author-X-Name-Last: Pekkala 
Title: Returns to scale in a matching model: evidence from disaggregated panel data 
Abstract:
  The returns to scale in the matching function play an important role in
 models with endogenous search effort. Due to positive externalities,
 increasing returns to scale in matching can support high or low activity
 equilibrium in the labour market. In this study, we examine this issue
 using panel data from Finnish employment offices. The study finds that the
 results from the Cobb-Douglas and translog specification are qualitatively
 different. The CD specification of the matching function exhibits constant
 returns to scale. The translog specification, in turn, exhibits increasing
 returns to scale. The elasticity estimate for returns, using the preferred
 specification and minimum and maximum sample values for job seekers and
 vacancies, fall in the range of 1.1 to 1.6. 
Journal: Applied Economics 
Pages: 115-118 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331313530 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331313530 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:115-118




Template-Type: ReDIF-Article 1.0
Author-Name: Kang-Shik Choi 
Author-X-Name-First: Kang-Shik 
Author-X-Name-Last: Choi 
Author-Name: Jinook Jeong 
Author-X-Name-First: Jinook 
Author-X-Name-Last: Jeong 
Title: Technological change and wage premium in a small open economy: the case of Korea 
Abstract:
  The aim of this study is to analyse the relationship between
 technological change and the educational wage premium in Korea. The main
 findings are as follows. First, the changes in educational wage premium
 were mostly affected by shifts in the supply of college graduates from
 1983 to 1993 while the changes were affected more by the shifts in labour
 demand from 1993 to 2000. Second, the educational wage premium is greater
 in the industries with rapid technological change than in the industries
 with slower technological change. Third, the educational wage premium
 associated with the technological change is mostly explained by the
 returns to worker's unobserved heterogeneities, which is correlated with
 education, rather than the returns to education per se. Finally, there are
 some evidences that skill biased technologies are developed as the number
 of skilled workers are increasing. 
Journal: Applied Economics 
Pages: 119-131 
Issue: 1 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000290147 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000290147 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:119-131




Template-Type: ReDIF-Article 1.0
Author-Name: William Collier 
Author-X-Name-First: William 
Author-X-Name-Last: Collier 
Title: Unemployment duration and individual heterogeneity: a regional study 
Abstract:
  This paper investigates the impact of individual heterogeneity and
 regional influences on unemployment duration utilizing cross-section
 microeconomic data drawn from a representative random survey of individual
 job seekers for the English county of Kent. These individual-level data
 are unique in that they provide information concerning the personal
 characteristics of job seekers, alongside direct observations of both
 their reservation wages and job search behaviour. Such data are rare and,
 to the authors' knowledge, have never before been utilized in a regional
 context. Thus, the paper contributes to the empirical literature by
 analysing the extent to which individual heterogeneity and intra-regional
 variation in labour market opportunities impact upon the observed
 distribution of unemployment duration(s). In particular, the paper
 analyses the extent to which the duration of unemployment is determined by
 individual choice. This is an important issue for the formation and
 evaluation of policy. These results provide new insights into the
 long-term efficacy of current microeconomic supply-side initiatives such
 as 'The New Deal' and related welfare to work policies. They also advocate
 a more active role for macroeconomic demand-led management and provide
 support for a more integrated strategy for policy implementation at the
 urban and regional level. 
Journal: Applied Economics 
Pages: 133-153 
Issue: 2 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331315042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:133-153




Template-Type: ReDIF-Article 1.0
Author-Name: Bichaka Fayissa 
Author-X-Name-First: Bichaka 
Author-X-Name-Last: Fayissa 
Author-Name: Paulos Gutema 
Author-X-Name-First: Paulos 
Author-X-Name-Last: Gutema 
Title: Estimating a health production function for Sub-Saharan Africa (SSA) 
Abstract:
  The paper estimates a health production function for Sub-Saharan Africa
 based on the Grossman (1972) theoretical model that treats social,
 economic, and environmental factors as inputs of the production system. In
 estimating this function, socioeconomic and environmental factors such as
 income per capita, illiteracy rate, food availability, ratio of health
 expenditure to GDP, urbanization rate, and carbon dioxide emission per
 worker are specified as determinants of health status. The parameters of
 the function are estimated by one-way and two-way fixed and random effects
 model of panel data analyses. The results of the two-way random effect
 model suggest that an increase in income per capita, a decrease in
 illiteracy rate, and an increase in food availability are strongly
 associated with an improvement in life expectancy at birth. Overall, the
 results imply that a health policy which may focus on the provision of
 health services, family planning programs, and emergency aids to the
 exclusion of other socioeconomic and environmental aspects may do little
 to improve the current health status of the region. 
Journal: Applied Economics 
Pages: 155-164 
Issue: 2 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331313521 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331313521 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:155-164




Template-Type: ReDIF-Article 1.0
Author-Name: David Harvey 
Author-X-Name-First: David 
Author-X-Name-Last: Harvey 
Author-Name: Terence Mills 
Author-X-Name-First: Terence 
Author-X-Name-Last: Mills 
Title: Evidence for common features in G7 macroeconomic time series 
Abstract:
  Systems of economic data potentially exhibit a number of common features,
 which aid both econometric modelling and economic interpretation. This
 paper surveys a variety of common features and applies the corresponding
 testing and estimation techniques to systems of macroeconomic time series
 in the G7 countries. Strong evidence is found of common trends and common
 or co-dependent cycles in the data, and, for two countries, empirical
 support for common non-linearities. 
Journal: Applied Economics 
Pages: 165-175 
Issue: 2 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331314999 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331314999 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:165-175




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Bajada 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Bajada 
Title: Unemployment and the underground economy in Australia 
Abstract:
  Despite government attempts to reduce welfare benefit fraud in Australia,
 participation in the underground economy by those claiming to be
 unemployed continues. Although there exists considerable international
 literature on the size of the underground economy, academics and public
 officials alike have paid little attention to the extent of participation
 in the underground economy by those who claim to be unemployed and in
 receipt of social security payments. This study provides the first known
 estimate of how changes in the unemployment rate affect the size and
 growth of the underground economy in Australia and the likely economic
 implications this may have for public policy decisions. We find that a
 number of unemployed Australians prefer to remain unemployed and work
 surreptitiously in the underground economy, while others, after becoming
 unemployed and finding legitimate employment, prefer to continue working
 in the underground economy. 
Journal: Applied Economics 
Pages: 177-189 
Issue: 2 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000291335 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291335 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:177-189




Template-Type: ReDIF-Article 1.0
Author-Name: Epaminondas Panas 
Author-X-Name-First: Epaminondas 
Author-X-Name-Last: Panas 
Title: Generalized beta distributions for describing and analysing intraday stock market data: testing the U-shape pattern 
Abstract:
  There is an impressive body of empirical evidence which indicates the
 existence of an intraday U-shaped curve in stock prices. In an effort to
 shed additional light on the U-shaped curve a new procedure for U-shape
 testing is introduced. From careful analysis of intraday data it is
 observed that minimum or maximum stock prices can occur several times
 during the day. Here, attention is focused on the first time during the
 day that the maximum or minimum stock price occurred. Because of the
 importance of the first time during the day that the maximum or minimum
 stock price occurred, an attempt is made to model these two
 characteristics with probability distributions. The objective of this
 study is to use a generalized beta distribution to examine the intradaily
 behaviour of stocks, using closing stock prices for each one-minute
 interval, using data from Athens Stock Exchange (ASE). This generalized
 beta distribution has not been used before to model U-shaped behaviour.
 The results are consistent with the intraday U-shaped curves, i.e. the
 time to first maximum (or minimum) stock prices follows a U-shaped
 pattern. In addition, some potential applications of the generalized beta
 distribution are discussed and exemplified by analysing the relationship
 between herd behaviour and U-shaped. 
Journal: Applied Economics 
Pages: 191-199 
Issue: 2 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331315006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315006 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:191-199




Template-Type: ReDIF-Article 1.0
Author-Name: Rebeca Jimenez-Rodriguez 
Author-X-Name-First: Rebeca 
Author-X-Name-Last: Jimenez-Rodriguez 
Author-Name: Marcelo Sanchez 
Author-X-Name-First: Marcelo 
Author-X-Name-Last: Sanchez 
Title: Oil price shocks and real GDP growth: empirical evidence for some OECD countries 
Abstract:
  This study assesses empirically the effects of oil price shocks on the
 real economic activity of the main industrialized countries. Multivariate
 VAR analysis is carried out using both linear and non-linear models. The
 latter category includes three approaches employed in the literature,
 namely, the asymmetric, scaled and net specifications. Evidence of a
 non-linear impact of oil prices on real GDP is found. In particular, oil
 price increases are found to have an impact on GDP growth of a larger
 magnitude than that of oil price declines, with the latter being
 statistically insignificant in most cases. Among oil importing countries,
 oil price increases are found to have a negative impact on economic
 activity in all cases but Japan. Moreover, the effect of oil shocks on GDP
 growth differs between the two oil exporting countries in the sample, with
 the UK being negatively affected by an oil price increase and Norway
 benefiting from it. 
Journal: Applied Economics 
Pages: 201-228 
Issue: 2 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000281561 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:201-228




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Fu Chen 
Author-X-Name-First: Yu-Fu 
Author-X-Name-Last: Chen 
Author-Name: I-Hui Cheng 
Author-X-Name-First: I-Hui 
Author-X-Name-Last: Cheng 
Title: Protection and employment under uncertainty: a real option approach 
Abstract:
  The paper explores the effect of protection lobbying by solving a firm's
 dynamic optimization problem where there is uncertainty about future
 demand, the success of lobbying and non-zero entry/exit costs. It is found
 that firms in declining industries tend to lobby to prevent shutting down
 factories during economic turndowns. In contrast, firms in growing
 industries tend to lobby to prevent other firms from entering the market.
 The degree of this effect depends on the ratio of exit costs to entry
 costs. It is shown that the higher the ratio, the stronger the effect. 
Journal: Applied Economics 
Pages: 229-238 
Issue: 2 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331315033 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315033 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:229-238




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Ismihan 
Author-X-Name-First: Mustafa 
Author-X-Name-Last: Ismihan 
Author-Name: Kivilcim Metin-Ozcan 
Author-X-Name-First: Kivilcim 
Author-X-Name-Last: Metin-Ozcan 
Author-Name: Aysit Tansel 
Author-X-Name-First: Aysit 
Author-X-Name-Last: Tansel 
Title: The role of macroeconomic instability in public and private capital accumulation and growth: the case of Turkey 1963-1999 
Abstract:
  This study investigates the empirical relationship(s) between
 macroeconomic instability, public and private capital accumulation and
 growth in Turkey over the period 1963-1999. Time series econometric
 techniques, such as cointegration and impulse response analysis, are used.
 The results of this paper suggest that the chronic and increasing
 macroeconomic instability of the Turkish economy has seriously affected
 her capital formation and growth. Furthermore, the Turkish experience
 indicates that chronic macroeconomic instability seems to be a serious
 impediment to public investment, especially to its infrastructural
 component, and shatters, or even reverses, the complementarity between
 public and private investment in the long run. 
Journal: Applied Economics 
Pages: 239-251 
Issue: 2 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000286115 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000286115 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:239-251




Template-Type: ReDIF-Article 1.0
Author-Name: Barry Goodwin 
Author-X-Name-First: Barry 
Author-X-Name-Last: Goodwin 
Author-Name: Randy Schnepf 
Author-X-Name-First: Randy 
Author-X-Name-Last: Schnepf 
Author-Name: Erik Dohlman 
Author-X-Name-First: Erik 
Author-X-Name-Last: Dohlman 
Title: Modelling soybean prices in a changing policy environment 
Abstract:
  Accurate forecasts of commodity prices are an important ingredient in the
 policy formation process. A commodity price forecasting procedure used
 routinely by the US Department of Agriculture in their policy and market
 analysis activities is a simple, linear, reduced-form regression model
 that predicts season-average farm prices (SAFP) using policy variables and
 the ratio of total ending stocks to use. This approach is extended to the
 soybean SAFP to estimate a benchmark model using annual data. Also several
 specification issues related to this estimation framework are addressed.
 Evaluation suggests that the standard forecasting procedure may be
 affected by the fact that the ratio of stocks to use is endogenous to
 prices. In addition, important structural changes are revealed in these
 relationships over time. A model is then considered that allows parameters
 to shift gradually. Improvements in the accuracy of model forecasts
 allowed by this parameter switching technique are identified and
 discussed. In addition, the exact nature of the structural shifts is
 evaluated using dynamic impulse response functions. 
Journal: Applied Economics 
Pages: 253-263 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331315060 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315060 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:253-263




Template-Type: ReDIF-Article 1.0
Author-Name: Athina Kanioura 
Author-X-Name-First: Athina 
Author-X-Name-Last: Kanioura 
Author-Name: Paul Turner 
Author-X-Name-First: Paul 
Author-X-Name-Last: Turner 
Title: Critical values for an F-test for cointegration in a multivariate model 
Abstract:
  Critical values for a test for cointegration are generated based on the
 joint significance of the levels terms in an error-correction equation. It
 is shown that the appropriate critical values are higher than those
 derived from the standard F-distribution. The power properties of this
 test are compared with those of the Engle-Granger (Econometrica, 55,
 251-76, 1987) test and Kremers et al.'s (Oxford Bulletin of Economics and
 Statistics, 54(3), 325-48, 1992) t-test based on the t-statistic from an
 error-correction equation. The F-test has higher power than the
 Engle-Granger test but lower power than the t-form of the error-correction
 test. However, the F-form of the test has the advantage that its
 distribution is independent of the parameters of the problem being
 considered. Finally, a test is considered for cointegration between UK and
 US interest rates. It is shown that the F-test rejects the null of no
 cointegration between these variables although the Engle-Granger test
 fails to do so. 
Journal: Applied Economics 
Pages: 265-270 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331315051 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315051 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:265-270




Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Florkowski 
Author-X-Name-First: Wojciech 
Author-X-Name-Last: Florkowski 
Author-Name: Camilo Sarmiento 
Author-X-Name-First: Camilo 
Author-X-Name-Last: Sarmiento 
Title: The examination of pecan price differences using spatial correlation estimation 
Abstract:
  A spatial analysis is used to model factors that explain the price
 received by pecan growers. Besides the statistical aspect of the study
 focussing on spatial autoregressive residuals, the economic analysis of
 the paper identifies linkages between the price for in-shell pecans
 received by growers and the characteristics of the orchard, production
 costs and resources, and the orchard location. 
Journal: Applied Economics 
Pages: 271-278 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295340 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295340 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:271-278




Template-Type: ReDIF-Article 1.0
Author-Name: Kostas Tsekouras 
Author-X-Name-First: Kostas 
Author-X-Name-Last: Tsekouras 
Author-Name: Dimitris Skuras 
Author-X-Name-First: Dimitris 
Author-X-Name-Last: Skuras 
Title: Productive efficiency and exports: an examination of alternative hypotheses for the Greek cement industry 
Abstract:
  Efficiency loss that is due to over- or under-capacity utilization is a
 significant factor influencing the exporting activity of firms. Using time
 series data from the Greek cement industry, it is found that efficiency
 loss triggers export activities up to a certain threshold where firms se
 to export in order to reduce the deviation from optimum capacity
 utilization. Beyond this threshold, the size of efficiency loss becomes a
 major barrier to export in terms of competitiveness. Thus, both the
 Self-Selection Hypothesis (SSH) and the well-known Market Selection
 Hypothesis (MSH) may be in operation for various sizes of efficiency loss. 
Journal: Applied Economics 
Pages: 279-291 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295250 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295250 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:279-291




Template-Type: ReDIF-Article 1.0
Author-Name: Luca Grilli 
Author-X-Name-First: Luca 
Author-X-Name-Last: Grilli 
Title: Internet start-ups access to the bank loan market: evidence from Italy 
Abstract:
  The analysis of the bank sector's ability to efficiently fuel the birth
 of new Italian business ventures in Internet-related services is studied.
 In particular, through the specification and the estimate of a series of
 econometric models, this paper aims at investigating which characteristics
 of a large sample of Internet start-ups and their relative founders
 facilitate access to the loan market. More precisely, the role played by
 founders' human capital as a possible significant signal used by banks to
 evaluate investment projects is addressed. Estimation results suggest that
 highly qualified human resources possessed by Internet founders do not
 represent an important driver for gaining access to bank credit and they
 do not affect the amount of the incurred debt. 
Journal: Applied Economics 
Pages: 293-305 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295331 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295331 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:293-305




Template-Type: ReDIF-Article 1.0
Author-Name: Munehisa Kasuya 
Author-X-Name-First: Munehisa 
Author-X-Name-Last: Kasuya 
Title: Regime-switching approach to monetary policy effects 
Abstract:
  Even though monetary policy has kept interest rates at historically low
 levels, the Japanese economy has experienced long lasting recessions since
 the 1990s. In this paper, Japanese data are employed to conduct an
 empirical analysis of changes in the effects of monetary policy on the
 real economy. It is found that monetary policy effects vary depending on
 the phase of the business cycle and the lending attitudes diffusion
 indices. More precisely, policy effects are larger in recession but
 diminish in extreme recession, and monetary policy is more effective when
 lenders' attitudes are severe but less effective when they are excessively
 severe. 
Journal: Applied Economics 
Pages: 307-326 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295241 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295241 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:307-326




Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Andren 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Andren 
Title: 'Never on a Sunday': Economic incentives and short-term sick leave in Sweden 
Abstract:
  Using a longitudinal data for about 1800 persons observed between 1986
 and 1991, this study investigates the incentive effects on short-term
 sickness spells of two important regime changes in the social insurance
 system in Sweden implemented in 1987 and 1991. The results indicate that
 the rules influenced people's decisions about when to report the beginning
 and ending of sickness spells. The 1991 reform, which reduced the
 replacement rate, had a stronger effect on reducing the duration of
 short-term absences than the 1987 reform, which restricted the payment of
 sickness cash benefit to only scheduled workdays. 
Journal: Applied Economics 
Pages: 327-338 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295287 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295287 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:327-338




Template-Type: ReDIF-Article 1.0
Author-Name: Lei Lei Song 
Author-X-Name-First: Lei Lei 
Author-X-Name-Last: Song 
Title: Do underlying measures of inflation outperform headline rates? Evidence from Australian data 
Abstract:
  Many central banks often focus on underlying measures of inflation when
 assessing inflation trends. This paper compares the accuracy of underlying
 measures of inflation relative to the headline rates by using Australia
 data. It is found that the underlying measures did have smaller errors in
 predicting the long-term trend in inflation than the quarterly headline
 rate due to the volatility in the headline rate. As compared to the
 year-ended headline rate, the statistical test results, however, support
 only the measure of market prices excluding volatile items, not the
 others. There is some weak evidence of the weighted median measure
 outperforming the headline rate in the sub-period after 1993. With respect
 to directional accuracy, the test statistics cannot reject the null
 hypothesis of an equal probability correctly predicting the moving
 direction of the inflation trend, though the headline rates have a higher
 probability. 
Journal: Applied Economics 
Pages: 339-345 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295322 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295322 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:339-345




Template-Type: ReDIF-Article 1.0
Author-Name: Jae Kim 
Author-X-Name-First: Jae 
Author-X-Name-Last: Kim 
Title: Investigating the advertising-sales relationship in the Lydia Pinkham data: a bootstrap approach 
Abstract:
  The dynamic relationship between advertising and sales in the annual
 Lydia Pinkham data is re-evaluated. Past studies have found a feedback
 system, although one-way causality from advertising to sales is expected.
 The bootstrap method is used in this paper as an alternative to the
 asymptotic method exclusively adopted by past studies. The impulse
 response analysis based on bivariate autoregressive (AR) model is
 conducted. Bootstrap-after-bootstrap confidence intervals on impulse
 responses provide evidence that sales do not cause advertising, contrary
 to the findings of past studies. Comparison of bootstrap-after-bootstrap
 prediction intervals calculated from univariate and bivariate AR models
 further supports this finding. Overall, this paper finds evidence of
 one-way causality from advertising to sales. 
Journal: Applied Economics 
Pages: 347-354 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295278 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295278 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:347-354




Template-Type: ReDIF-Article 1.0
Author-Name: Felix J. Lopez Iturriaga 
Author-X-Name-First: Felix J. Lopez 
Author-X-Name-Last: Iturriaga 
Title: Debt ownership structure and legal system: an international analysis 
Abstract:
  This paper is concerned with the ownership structure of corporate debt
 from an institutional perspective. An attempt is made to identify the
 factors affecting bank debt use from an international sample of companies
 from Austria, Germany, Japan, Belgium, France, Italy, Holland, Spain,
 Portugal, Finland, Sweden and the USA. The results show that bank debt
 depends both on factors specific to each company and on institutional
 features of each country. More exactly, it is found that bank loans are
 related to firm size, to the quality and risk of the projects, and to the
 collateral. It is also found that a number of legal-institutional factors
 are impacting on the source of firms' debt, such as creditor protection,
 firm disclosure requirements and law enforcement. 
Journal: Applied Economics 
Pages: 355-365 
Issue: 3 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295269 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295269 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:355-365




Template-Type: ReDIF-Article 1.0
Author-Name: Harald Tauchmann 
Author-X-Name-First: Harald 
Author-X-Name-Last: Tauchmann 
Title: Efficiency of two-step estimators for censored systems of equations: Shonkwiler and Yen reconsidered 
Abstract:
  This study analyses a parametric estimator for a system of equations with
 limited dependent variables that was recently proposed. Its performance is
 compared with those of alternative estimation procedures using Monte Carlo
 methods. The comparison shows that this new estimator is less efficient
 for a wide range of parameter regions than multivariate generalizations of
 the classical Heckman model. This result can be explained by its variance
 depending on the squared conditional mean of the dependent variables.
 Additionally, it turns out that within the class of generalized Heckman
 estimators, rather simple ones display the best performance. 
Journal: Applied Economics 
Pages: 367-374 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000306987 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000306987 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:367-374




Template-Type: ReDIF-Article 1.0
Author-Name: Hilde Bj&#xf8;rnland 
Author-X-Name-First: Hilde 
Author-X-Name-Last: Bj&#xf8;rnland 
Title: A stable demand for money despite financial crisis: the case of Venezuela 
Abstract:
  The demand for broad money in Venezuela is investigated over a period of
 financial crisis and substantial exchange rate fluctuations. The analysis
 shows that there exist a long-run relationship between real money, real
 income, inflation, the exchange rate and an interest rate differential,
 that remains stable over major policy changes and large shocks. The
 long-run properties emphasize that both inflation and exchange rate
 depreciations have negative effects on real money demand, whereas a higher
 interest rate differential has positive effects. The long-run relationship
 is finally embedded in a dynamic equilibrium correction model with
 constant parameters. These results have implications for a policy-maker.
 In particular, they emphasize that with a high degree of currency
 substitution in Venezuela, monetary aggregates will be very sensitive to
 changes in the economic environment. 
Journal: Applied Economics 
Pages: 375-385 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331315015 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315015 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:375-385




Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon 
Author-X-Name-First: Franklin 
Author-X-Name-Last: Mixon 
Author-Name: Len Trevino 
Author-X-Name-First: Len 
Author-X-Name-Last: Trevino 
Author-Name: Taisa Minto 
Author-X-Name-First: Taisa 
Author-X-Name-Last: Minto 
Title: Are legislative TV and campaign finance regulations complementary entry barriers? Evidence from the USA 
Abstract:
  The present study examines the political use of legislative television
 and campaign finance restrictions as either complementary or substitutable
 forms of entry barriers using data from the 50 states for 1976. Results
 from a simultaneous probit procedure indicate that where campaign finance
 regulations are relaxed, demand for televised house sessions is increased.
 Results also suggest that the presence of televised proceedings increases
 the restrictiveness of a state's campaign finance rules, thus supporting
 the hypothesis that legislative television and campaign finance
 restrictions serve incumbent legislators as complementary institutional
 entry barriers. 'Successful politicians must use television and compete
 with popular culture for audience attention. Leaders therefore court
 voters by entertaining them and making them feel good. This strategy may
 increase popularity and win votes &#x2026;' (Cowen, 2000). 'All 50 states
 now regulate lobbyists to some degree. A public interest view of this
 regulation would suggest that the result would be that legislation would
 take more account of the general welfare and less account of private
 interests. However, keeping in mind that legislatures pass lobbying
 regulations, an economic model of regulation would suggest that lobbying
 regulations would be designed to benefit those in the legislature.'
 (Brinig et al., 1993). 
Journal: Applied Economics 
Pages: 387-396 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000306996 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000306996 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:387-396




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Gentle 
Author-X-Name-First: Paul 
Author-X-Name-Last: Gentle 
Author-Name: Krishna Paudel 
Author-X-Name-First: Krishna 
Author-X-Name-Last: Paudel 
Author-Name: Kamal Upadhyaya 
Author-X-Name-First: Kamal 
Author-X-Name-Last: Upadhyaya 
Title: Real wages, real interest rates, and the Phillips curve 
Abstract:
  This article argues that any analysis of a Phillips curve should include
 the real interest rate in addition to inflation and real wages as any
 changes in the interest rate changes the labour-capital input mix in the
 production process leading to a change in the level of employment in the
 economy. To justify this argument a Phillips curve model is developed,
 which includes the real interest rate in addition to inflation and real
 wages. After the diagnosis of the time series properties of the data, an
 error correction model is developed and estimated using a set of US annual
 data from 1948 to 1996. The estimated parameters of the model do suggest
 that one should really take into consideration of the real interest rate
 while analysing the Phillips curve. A non-nested test (F-test) also
 suggests that the Phillips curve model with real interest rate as an
 additional variable performs better than the conventional method that does
 not include the real interest rate. 
Journal: Applied Economics 
Pages: 397-402 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840412331315024 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315024 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:397-402




Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Marotta 
Author-X-Name-First: Giuseppe 
Author-X-Name-Last: Marotta 
Title: When do trade credit discounts matter? Evidence from Italian firm-level data 
Abstract:
  Italian firms are top users of trade credit in an international
 comparison. The paper offers some clues to the determinants of this
 stylized fact exploiting the answers of about 1900 manufacturing firms on
 a wide range of contractual features, separately for domestic and foreign
 customers. The main finding of the univariate analysis is that, with the
 almost totality of transactions made on credit, there is no evidence that
 this way of financing is more expensive than loans. An econometric
 investigation shows that discounts offered have the expected effect of
 reducing payment delays mostly for customers located abroad, where
 customary credit periods are shorter and creditors' rights protection is
 more effective. The result is consistent with the poor explanatory power
 of discounts received in regressions for the trade debt period of domestic
 firms. 
Journal: Applied Economics 
Pages: 403-416 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000329063 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000329063 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:403-416




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Brandao de Brito 
Author-X-Name-First: Jose Brandao 
Author-X-Name-Last: de Brito 
Author-Name: Felipa de Mello Sampayo 
Author-X-Name-First: Felipa de Mello 
Author-X-Name-Last: Sampayo 
Title: The timing and probability of FDI: an application to US multinational enterprises 
Abstract:
  An 'option-pricing' model is employed to analyse the timing of FDI.
 Assuming that the firm's profits are determined by the attractiveness of
 both the home and foreign countries, and that attractiveness follows a
 Brownian motion, an optimal trigger value of FDI is derived. The model
 shows that, contrary to the NPV rule, FDI entry should be delayed the
 greater the uncertainty of attractiveness in both locations. Another
 important result is that MNEs do not regard FDI as a risk-diversification
 tool. The results of the model were then tested empirically with US FDI
 data, using labour costs as a proxy for (the reciprocal of)
 attractiveness. The results support the findings of the analytical model. 
Journal: Applied Economics 
Pages: 417-437 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295313 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295313 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:417-437




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Rodriguez Andres 
Author-X-Name-First: Antonio Rodriguez 
Author-X-Name-Last: Andres 
Title: Income inequality, unemployment, and suicide: a panel data analysis of 15 European countries 
Abstract:
  Most panel data studies have employed overall suicide rates (male and
 female) to identify the determinants of suicide. This research has also
 neglected the use of country specific linear time trends. Neglecting these
 factors may confound the empirical estimates of socio-economic variables
 due to the impact of unobserved country specific determinants of suicide
 that are time-varying. Empirical results from 15 European countries
 between 1970 and 1998 support this hypothesis. Specifically, economic
 growth, fertility rate, and alcohol consumption seem to have a significant
 impact on male and female suicide rates after the inclusion of country
 specific linear trends. Contrary to prior studies, suicide rates were not
 sensitive to income levels, female labour participation rates and
 unemployment. In addition, the effect of divorce rate is specific to
 gender. Finally, the results also illustrate the importance of employing
 age-specific suicide rates compared to what has been traditionally used,
 in trying to evaluate the factors responsible for suicide mortality. In
 particular, the impact of socio-economic factors is not equal across age
 groups, and policies aimed at the prevention of suicide should take this
 into account. 
Journal: Applied Economics 
Pages: 439-451 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295304 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295304 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:439-451




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Andre 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Andre 
Author-Name: Javier Perez 
Author-X-Name-First: Javier 
Author-X-Name-Last: Perez 
Title: Robust stylized facts on comovement for the Spanish economy 
Abstract:
  The suggestion of obtaining stylized facts on comovement on the basis of
 prewhitened time series proposed in Andre et al. (2002) is further
 developed. First, some examples are shown on the robustness of the method.
 Second, the relevance of such a proposal is tested by revisiting some of
 the existing stylized facts on comovement for the Spanish economy in
 Dolado et al. (1993). 
Journal: Applied Economics 
Pages: 453-462 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/09603100412331297018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100412331297018 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:453-462




Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Lopez-Pueyo 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Lopez-Pueyo 
Author-Name: Jaime Sanau 
Author-X-Name-First: Jaime 
Author-X-Name-Last: Sanau 
Title: Internal versus external economies in European countries 
Abstract:
  In this paper sectoral production functions are estimated with a two
 digit disaggregation for eight European countries corresponding to the
 period 1978-1992, distinguishing between internal economies of scale and
 intersectoral external effects. In order to avoid the possibility that the
 regressions, carried out by way of panel data techniques, are spurious,
 the integration order of each variable has been identified using unit
 root. Similarly, the Hausman procedure has been applied to test the
 exogeneity of the variables and determine whether the most appropriate
 estimations should be SUR or three stage least squares. 
Journal: Applied Economics 
Pages: 463-471 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000307030 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000307030 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:463-471




Template-Type: ReDIF-Article 1.0
Author-Name: Belen Iraizoz 
Author-X-Name-First: Belen 
Author-X-Name-Last: Iraizoz 
Author-Name: Isabel Bardaji 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Bardaji 
Author-Name: Manuel Rapun 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Rapun 
Title: The Spanish beef sector in the 1990s: impact of the BSE crisis on efficiency and profitability 
Abstract:
  The beef sector has undergone a series of changes as a result of
 successive food scares and agricultural policy reforms. The purpose of the
 paper is to analyse technical efficiency and profitability in Spanish
 livestock enterprises during the 1990s, focusing on the possible impact of
 the BSE crisis and the 1992 CAP reform on each of these variables. The
 main findings reveal the existence of technical inefficiency during the
 sample period. Some factors have a positive impact, others a negative
 impact, on efficiency. As far as the effects of CAP reform and the BSE
 crisis are concerned, the results show the ineffectiveness of agricultural
 policy regulation to promote efficiency in the sector and the improvement
 in the efficiency as a consequence of the BSE crisis. The profitability
 analysis reveals the importance of direct subsidies, however. In their
 absence, a large percentage of holdings is unable to remunerate either own
 or rented factors. Analysis shows, therefore, that there are two
 counteracting effects from subsidies. On the one hand, they form a major
 part of the resources of livestock farmers, allowing them to meet input
 costs and preventing land abandonment. On the other hand, they have a
 significant negative impact on the level of technical efficiency
 estimated. 
Journal: Applied Economics 
Pages: 473-484 
Issue: 4 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295359 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295359 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:473-484




Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Endoh 
Author-X-Name-First: Masahiro 
Author-X-Name-Last: Endoh 
Title: The effects of the GSTP on trade flow: mission accomplished? 
Abstract:
  This paper investigates whether the Global System of Trade Preferences
 among developing countries (GSTP) achieves its intent to increase the
 trade of capital goods between member countries. For this purpose, trade
 data disaggregated by the degree of commodity differentiation and various
 GSTP regional dummies are employed in a gravity equation. Estimation
 results say that the value of trade between GSTP member countries has
 increased significantly since the formation of the GSTP in 1989, and the
 trade of differentiated commodities has increased remarkably compared with
 other commodities. Therefore, it can be asserted that the mission of the
 GSTP has been accomplished successfully. 
Journal: Applied Economics 
Pages: 487-496 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000318182 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000318182 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:487-496




Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Proietti 
Author-X-Name-First: Tommaso 
Author-X-Name-Last: Proietti 
Title: Convergence in Italian regional per-capita GDP 
Abstract:
  This paper addresses the issue of convergence of per-capita GDP of the 20
 Italian regions. The paper first focuses on the notion of
 &#x3c3;-convergence and proposes a new hierarchical clustering algorithm,
 grouping regions according to the presence of a monotonically decreasing
 trend in entropy. Then alternative definitions of long-run convergence are
 given, based on the notion of cointegration and common trends and the
 evidence arising from application of stationarity tests to the time series
 of regional contrasts is examined. The conclusion is that both kind of
 convergence can be used to characterize the dynamics of regional
 per-capita GDP. 
Journal: Applied Economics 
Pages: 497-506 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000318173 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000318173 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:497-506




Template-Type: ReDIF-Article 1.0
Author-Name: Carlo Altavilla 
Author-X-Name-First: Carlo 
Author-X-Name-Last: Altavilla 
Author-Name: Luigi Landolfo 
Author-X-Name-First: Luigi 
Author-X-Name-Last: Landolfo 
Title: Do central banks act asymmetrically? Empirical evidence from the ECB and the Bank of England 
Abstract:
  The paper attempts to exploit whether monetary authorities have a
 different behaviour during recession and expansion. To this end, a
 multivariate extension of Hamilton Markov-switching model is adopted.
 First, regime dependent Taylor-type rules are estimated for the Euro Area
 and the United Kingdom in order to capture the systematic behaviour of
 central banks. Then, impulse response functions that account for the
 different phases of the business cycle are analysed. In addition, a
 comparative analysis concerning the estimated rules as well as the
 different reaction of real economy to monetary shocks is implemented. The
 study strongly suggests that central banks cannot neglect the regime where
 the monetary action takes place. It follows that the phase of business
 cycle is an important matter in monetary policy decision process. 
Journal: Applied Economics 
Pages: 507-519 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000307072 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000307072 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:507-519




Template-Type: ReDIF-Article 1.0
Author-Name: Robert McNown 
Author-X-Name-First: Robert 
Author-X-Name-Last: McNown 
Author-Name: Cristobal Ridao-Cano 
Author-X-Name-First: Cristobal 
Author-X-Name-Last: Ridao-Cano 
Title: A time series model of fertility and female labour supply in the UK 
Abstract:
  Multiple time series procedures suitable for estimation and testing with
 nonstationary data are applied to UK data on age-specific fertility rates,
 age-specific female labour force participation rates, and women's and
 men's wages. Cointegration tests establish the existence of two long-run
 equilibrium relations, identified as a fertility relation and a labour
 supply equation, for each age group. Maximum likelihood estimates of these
 equations are consistent with the new home economics model of fertility,
 and tests of Granger-causality show evidence of extensive feedback among
 the variables. 
Journal: Applied Economics 
Pages: 521-532 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000307021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000307021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:521-532




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Eek 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Eek 
Author-Name: Klas Rikner 
Author-X-Name-First: Klas 
Author-X-Name-Last: Rikner 
Title: What determines people's decisions whether or not to report sick? 
Abstract:
  Swedish employees who are temporarily absent from work are compensated
 for the loss of income from the governmentally regulated sickness
 insurance. During the 1990s, when the societal costs for covering sickness
 absence raised dramatically, the sickness insurance underwent several
 changes, which raised questions about how people reacted to the changes
 made. This article is based on a survey where individuals were asked
 several questions about whether they would go to work or report sick,
 given that they actually felt ill. Respondents were asked the same
 questions under different hypothetical compensations. The results
 indicated strong effects of factors related to the financial loss of being
 absent on the propensity to report sick. 
Journal: Applied Economics 
Pages: 533-543 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000319163 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000319163 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:533-543




Template-Type: ReDIF-Article 1.0
Author-Name: Julie Hotchkiss 
Author-X-Name-First: Julie 
Author-X-Name-Last: Hotchkiss 
Author-Name: M. Melinda Pitts 
Author-X-Name-First: M. Melinda 
Author-X-Name-Last: Pitts 
Title: Female labour force intermittency and current earnings: switching regression model with unknown sample selection 
Abstract:
  Using the Health and Retirement Survey from the USA, this paper finds a
 16% selectivity-corrected wage penalty among women who engage in
 intermittent labour market activity. This penalty is experienced at a low
 level of intermittent activity, but appears to not play an important role
 in a woman's decision to undertake such activity. In addition, employer
 preferences appear to play a larger role than human capital atrophy in the
 determination of the wage penalty. 
Journal: Applied Economics 
Pages: 545-560 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000307003 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000307003 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:545-560




Template-Type: ReDIF-Article 1.0
Author-Name: Kwami Adanu 
Author-X-Name-First: Kwami 
Author-X-Name-Last: Adanu 
Title: A cross-province comparison of Okun's coefficient for Canada 
Abstract:
  This study estimates Okun's coefficients for ten Canadian provinces using
 real GDP and unemployment rate data across the provinces. An average
 estimated Okun's coefficient of -1.58 is obtained under the
 Hodrick-Prescott detrending method and -1.32 under the quadratic
 detrending method. There is relative stability of the coefficients across
 the two detrending methods. Generally, the cost of unemployment in terms
 of the loss in real GDP is higher in the bigger and more industrialized
 provinces ranging from -2.14 for Ontario to less than -1 for the Maritime
 provinces. 
Journal: Applied Economics 
Pages: 561-570 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000201848 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201848 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:561-570




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad. Afrasiabi 
Author-X-Name-First: Ahmad. 
Author-X-Name-Last: Afrasiabi 
Author-Name: Tomas Nonnenmacher 
Author-X-Name-First: Tomas 
Author-X-Name-Last: Nonnenmacher 
Title: High and low frequency variations and the cyclical behaviour of real wages 
Abstract:
  The conflicting empirical evidence on the cyclicality of real wages may
 be a result of the fact that the measure of comovements employed in the
 literature is affected by coherence among non-business cycle variations in
 the data. By recursively removing components the degree to which long- and
 short-term cycles contaminate the existing evidence is studied. While
 confirming many of the results of the current literature, it is found that
 evidence of cyclicality is affected more by long rather than by short-term
 components, even though the data have been detrended by a number of
 different methods. It has been suggested in the literature that wages
 become more countercyclical as the deflators used represent less finished
 bundles of goods. This study shows that this result is robust to the
 removal of components from either end of the spectrum. 
Journal: Applied Economics 
Pages: 571-579 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840420003067068 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840420003067068 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:571-579




Template-Type: ReDIF-Article 1.0
Author-Name: Yesim Kustepeli 
Author-X-Name-First: Yesim 
Author-X-Name-Last: Kustepeli 
Title: A comprehensive short-run analysis of a (possible) Turkish Phillips curve 
Abstract:
  The studies on Phillips curves relating the rate of unemployment to the
 rate of inflation are the results of the search for a reliable tool for
 forecasting inflation and implementing monetary policy. The original
 Phillips curve has attracted considerable attention and since then, it has
 undergone several important changes. Although the evidence of a negative
 relationship between the rate of change in a money variable and
 unemployment rate has not been proven, it is still considered to be
 critical for policymaking and is on researchers' agenda (Niskaken, 2002).
 The existence of a Phillips curve for Turkey is investigated with the
 linear and non-linear specifications for the conventional and new
 Keynesian Phillips curves with inflation expectations and natural rate of
 unemployment for annual (1980-2001) and semiannual (1988:2-2003:1) data
 sets. The results indicate no evidence of a Phillips curve for all
 specifications and both data sets. The semiannual data seems to have a
 better fit in all specifications compared to the annual data. Inflation
 expectations are found to be significant for inflation rather than
 unemployment rate in the current period. The results imply that Turkey has
 to solve its inflation problem by proper policies aimed at lowering the
 inflation expectations in the economy. 
Journal: Applied Economics 
Pages: 581-591 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/000368404200030749 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200030749 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:581-591




Template-Type: ReDIF-Article 1.0
Author-Name: Chau-Jung Kuo 
Author-X-Name-First: Chau-Jung 
Author-X-Name-Last: Kuo 
Author-Name: Su-Lien Lu 
Author-X-Name-First: Su-Lien 
Author-X-Name-Last: Lu 
Title: Taiwan's financial holding companies: an empirical investigation based on Markov regime-switching model 
Abstract:
  Though the Financial Holding Company Act in Taiwan permits banks,
 securities firms and insurance companies to affiliate, identifying the
 influence on Taiwan's financial holding companies hasn't been discussed
 rigorously yet. This paper presents a formal methodology, using two-state
 Markov regime switching approach, to allow for the uncertainty event-date
 of financial holding companies' stock return and risk. This study serves
 as one of the first studies that adopt a Markov regime-switching model to
 estimate financial holding companies' stock behaviour. The evidence shows
 that 12 of 13 financial holding companies have regime-switching and one
 has no regime-switching in Taiwan. Therefore, the stock behaviours of
 Taiwan's financial holding companies follow two regimes and the
 traditional linear model cannot be descriptive. However, the levels of 12
 financial holding companies' risk are significantly low of state 1 and
 stock returns are indifferent between two states. Hence, there are
 diversification benefits of Taiwan's financial holding companies.
 Summarily, to assess the influence on Taiwan's financial holding
 companies, it is recognized that this methodology developed by the model
 is meaningful for research. 
Journal: Applied Economics 
Pages: 593-605 
Issue: 5 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003084042000323573 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003084042000323573 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:593-605




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cook 
Title: Rank-based unit root testing in the presence of structural change under the null: simulation results and an application to US inflation 
Abstract:
  The size distortion of the Dickey-Fuller (Journal of the American
 Statistical Association, 74, pp. 427-31, 1979) unit root test is examined
 in the presence of structural changes in both the level and variance of
 integrated time series. In contrast to previous studies, the empirically
 relevant situation in which such breaks occur simultaneously is examined.
 It is shown that the severe distortion observed for the Dickey-Fuller test
 can be dramatically reduced via application of a simple rank-based method.
 The simulation results presented are supported by an empirical examination
 of the integrated nature of US inflation where differing inferences are
 drawn using the Dickey-Fuller test and the rank-based Dickey-Fuller test. 
Journal: Applied Economics 
Pages: 607-617 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000337370 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337370 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:607-617




Template-Type: ReDIF-Article 1.0
Author-Name: Derek Leslie 
Author-X-Name-First: Derek 
Author-X-Name-Last: Leslie 
Title: Why people from the UK's minority ethnic communities achieve weaker degree results than whites 
Abstract:
  People from the UK's minority ethnic communities achieve less good degree
 results than whites. The paper explores some reasons for this
 under-performance. By analysing a large sample of around two million
 observations a measure of the quality of qualifications among those
 accepted into Higher Education is developed. It is found that ethnic
 minorities are less well qualified than whites. This is because
 proportionately more are accepted into Higher Education, so lower average
 quality is unsurprising. Subject choice is also found to have an influence
 because ethnic minorities choose subjects where it is more difficult to
 achieve a good degree. 
Journal: Applied Economics 
Pages: 619-632 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000313172 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000313172 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:619-632




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Nehring 
Author-X-Name-First: Richard 
Author-X-Name-Last: Nehring 
Author-Name: Jorge Fernandez-Cornejo 
Author-X-Name-First: Jorge 
Author-X-Name-Last: Fernandez-Cornejo 
Author-Name: David Banker 
Author-X-Name-First: David 
Author-X-Name-Last: Banker 
Title: Off-farm labour and the structure of US agriculture: the case of corn/soybean farms 
Abstract:
  While the growing importance of off-farm earnings suggests large benefits
 accrue to farmers from efforts to expand off-farm income opportunities,
 economic well being also depends on greater efficiency. To comprehensively
 gauge the economic health of farm operator households' off-farm income is
 interpreted as an output along with corn, soybeans, livestock and other
 crops. To accomplish this task two related methodologies were used. First,
 using 2000 data, a multi-activity cost function was set up to analyse
 labour allocation decisions within the farm operator household and also to
 estimate returns to scale and scope. Second, using 1996-2000 data, an
 input distance function approach was followed to estimate returns to
 scale, cost economies and technical efficiency - and the relative
 performance of farm operator households with and without off-farm wages
 and salaries compared. The cost function and input distance function
 results both suggest that off-farm outputs and inputs can be modelled in a
 multi-activity framework and involve significant economies of scope. 
Journal: Applied Economics 
Pages: 633-649 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000323582 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000323582 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:633-649




Template-Type: ReDIF-Article 1.0
Author-Name: David Prescott 
Author-X-Name-First: David 
Author-X-Name-Last: Prescott 
Author-Name: David Wilton 
Author-X-Name-First: David 
Author-X-Name-Last: Wilton 
Author-Name: Canan Dadayli 
Author-X-Name-First: Canan 
Author-X-Name-Last: Dadayli 
Author-Name: Aaron Dickson 
Author-X-Name-First: Aaron 
Author-X-Name-Last: Dickson 
Title: Travel to Canada: the role of Canada's immigrant populations 
Abstract:
  The effect of Canada's immigrant populations on the annual flow of
 visitors to Canada is investigated. A simple utility-maximizing model of
 the travel decision motivates the role of immigrant populations in the
 aggregate demand equation for visits to Canada. The model implies testable
 hypotheses: price and income elasticities differ by purpose of trip. Using
 time-series cross-section data on 22 OECD countries an empirical demand
 model is estimated. Demand is measured by both the number of visitors and
 person-nights and separate equations are estimated for four subcategories
 of 'purpose of trip'. Immigrant populations are found to have a strong
 influence on the annual flow of foreign visitors. It is estimated that the
 present value of the stream of spending by foreign visitors attributable
 to an additional immigrant is approximately $4550 in 1996 dollars. In
 accordance with the model's predictions, price and income elasticity
 estimates are greater for vacationers than for those visiting family and
 friends. 
Journal: Applied Economics 
Pages: 651-663 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000329045 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000329045 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:651-663




Template-Type: ReDIF-Article 1.0
Author-Name: Jane Binner 
Author-X-Name-First: Jane 
Author-X-Name-Last: Binner 
Author-Name: Rakesh Bissoondeeal 
Author-X-Name-First: Rakesh 
Author-X-Name-Last: Bissoondeeal 
Author-Name: Thomas Elger 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Elger 
Author-Name: Alicia Gazely 
Author-X-Name-First: Alicia 
Author-X-Name-Last: Gazely 
Author-Name: Andrew Mullineux 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Mullineux 
Title: A comparison of linear forecasting models and neural networks: an application to Euro inflation and Euro Divisia 
Abstract:
  Linear models reach their limitations in applications with nonlinearities
 in the data. In this paper new empirical evidence is provided on the
 relative Euro inflation forecasting performance of linear and non-linear
 models. The well established and widely used univariate ARIMA and
 multivariate VAR models are used as linear forecasting models whereas
 neural networks (NN) are used as non-linear forecasting models. It is
 endeavoured to keep the level of subjectivity in the NN building process
 to a minimum in an attempt to exploit the full potentials of the NN. It is
 also investigated whether the historically poor performance of the
 theoretically superior measure of the monetary services flow, Divisia,
 relative to the traditional Simple Sum measure could be attributed to a
 certain extent to the evaluation of these indices within a linear
 framework. Results obtained suggest that non-linear models provide better
 within-sample and out-of-sample forecasts and linear models are simply a
 subset of them. The Divisia index also outperforms the Simple Sum index
 when evaluated in a non-linear framework. 
Journal: Applied Economics 
Pages: 665-680 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684052000343679 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684052000343679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:665-680




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Lange 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Lange 
Title: Determinants of the long-term yield in Canada: an open economy VAR approach 
Abstract:
  This study analyses the economic determinants of short- and long-term
 interest rates in Canada using a structural vector autoregressive (VAR)
 model. The VAR takes into consideration that Canadian financial markets
 are small and open relative to those in the USA and that Canada is a
 relatively large exporter of commodities. In part, the empirical results
 for Canada are similar to those for the USA. Aggregate demand shocks have
 relatively large and persistent effects on long-term yields, while
 aggregate supply shocks do not have significant effects. However, monetary
 policy shocks in Canada are found to have larger and more persistent
 effects on long-term yields than those found for the USA. The most
 striking result is that movements in US monetary policy have relatively
 large, significant and persistent effects on Canadian long-term bond
 yields. Furthermore, US monetary policy disturbances can account for the
 overall trend in long-term yields in Canada. 
Journal: Applied Economics 
Pages: 681-693 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000337389 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337389 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:681-693




Template-Type: ReDIF-Article 1.0
Author-Name: James Kung 
Author-X-Name-First: James 
Author-X-Name-Last: Kung 
Author-Name: Andrew Carverhill 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Carverhill 
Title: A cointegration study of the efficiency of the US Treasury STRIPS market 
Abstract:
  One theoretical implication of cointegration, according to Granger
 (1986), is that asset prices in an efficient market cannot be
 cointegrated. Using price data on US Treasury STRIPS with maturities from
 2/15/1997 to 8/15/2015, it is found that a set of three STRIPS series is
 often cointegrated. In addition, by setting up a costless hedge portfolio
 from three STRIPS with three different maturities, it is found that the
 hedge portfolio is often stationary and thus arbitrage opportunities are
 likely to occur. That is, because the hedge portfolio is costless and
 stationary, cash in can be done when the value of the hedge portfolio is
 either positive or negative. However, when taking liquidity, tax effects,
 and transaction costs into consideration, these arbitrage profits would be
 unlikely. Hence, it is concluded that the US Treasury STRIPS market is
 efficient. 
Journal: Applied Economics 
Pages: 695-703 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000329054 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000329054 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:695-703




Template-Type: ReDIF-Article 1.0
Author-Name: Charles DeLorme 
Author-X-Name-First: Charles 
Author-X-Name-Last: DeLorme 
Author-Name: Stacey Isom 
Author-X-Name-First: Stacey 
Author-X-Name-Last: Isom 
Author-Name: David Kamerschen 
Author-X-Name-First: David 
Author-X-Name-Last: Kamerschen 
Title: Rent seeking and taxation in the Ancient Roman Empire 
Abstract:
  Historians maintain that an increase in taxation of the peasant farmers,
 government corruption and misuse of its revenue by the ruling class led to
 a weakening of the Roman Empire that culminated in its western demise in
 the fifth century. But it was not just the taxation issue doomed the Roman
 Empire, but political change from a Republic to an emperor that
 exacerbated the climate of rent-seeking behaviour by the ruling classes
 that culminated in the misallocation of tax resources. One category of
 rent seeking involves the spending of money that the average taxpayer sees
 as foolish but that benefits a particular group. The groups who bear the
 costs can stop the rent seeking if they are informed. These average
 citizens were peasant farmers who no doubt recognized the costs but were
 unable to form political coalitions to protect themselves because military
 control of Roman legions was under the tight control of the emperor. This
 was not the case under the Republic. With the emperors, public funds were
 being diverted from the public infrastructure such as road building and
 repair to more frivolous activities. 
Journal: Applied Economics 
Pages: 705-711 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000323591 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000323591 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:705-711




Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende 
Author-X-Name-First: Marcelo 
Author-X-Name-Last: Resende 
Author-Name: Marcos Lima 
Author-X-Name-First: Marcos 
Author-X-Name-Last: Lima 
Title: Market share instability in Brazilian industry: a dynamic panel data analysis 
Abstract:
  The paper investigates market share instability in the context of
 Brazilian industry for the 1986-1998 period. The paper proposes the use of
 panel data unit root tests to access market share instability for a sample
 of industrial firms from different sectors and therefore generalizes
 related time series unit root tests proposed by Gallet and List (2001).
 The results mostly indicate that one cannot reject the hypothesis of
 market share instability and therefore there exist some degree of market
 rivalry in the Brazilian case. 
Journal: Applied Economics 
Pages: 713-718 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000318181 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000318181 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:713-718




Template-Type: ReDIF-Article 1.0
Author-Name: A. J. Khadaroo 
Author-X-Name-First: A. J. 
Author-X-Name-Last: Khadaroo 
Title: A threshold in inflation dynamics: evidence from emerging countries 
Abstract:
  Using monthly data over the period January 1976-November 2002, the
 present paper detects significant threshold non-linearities in the
 inflation rates of three emerging countries, namely India, Singapore and
 South Africa. A two-regime self-exciting threshold autoregressive (SETAR)
 model of inflation, constituting a significant improvement over the
 corresponding linear AR model, is estimated for these countries. Singapore
 is shown to have a much lower implied equilibrium inflation rate than
 India, while there is a possibility of seasonal inflation equilibria for
 South Africa. 
Journal: Applied Economics 
Pages: 719-723 
Issue: 6 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000295296 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295296 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:719-723




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolan Fu 
Author-X-Name-First: Xiaolan 
Author-X-Name-Last: Fu 
Title: Exports, technical progress and productivity growth in a transition economy: a non-parametric approach for China 
Abstract:
  Theories suggesting either static or dynamic productivity gains derived
 from exports often assume the prior existence of a competitive market. In
 the presence of market imperfection and distortion, however, the
 competition and resource reallocation effects of exports on productive
 efficiency may be greatly reduced; and there may actually be disincentives
 for innovation. This paper analyses the impact of exports on aggregate
 productivity growth in a transition economy using a panel of Chinese
 manufacturing industries over the period 1990-1997. TFP growth is
 estimated by employing a non-parametric approach and is decomposed into
 technical progress and efficiency change. No evidence has been found
 suggesting significant productivity gains at the industry level resulting
 from exports. Findings of the current study suggest that, for exports to
 generate significant positive effect on TFP growth, a well-developed
 domestic market and a neutral, outward-oriented policy are necessary. 
Journal: Applied Economics 
Pages: 725-739 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500049041 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500049041 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:725-739




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Gallego 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Gallego 
Author-Name: Christian Johnson 
Author-X-Name-First: Christian 
Author-X-Name-Last: Johnson 
Title: Building confidence intervals for band-pass and Hodrick-Prescott filters: an application using bootstrapping 
Abstract:
  This article generates innovative confidence intervals for two of the
 most popular de-trending methods: Hodrick-Prescott and band-pass filters.
 The confidence intervals are obtained using block-bootstrapping techniques
 for dependent data. GDP trend growth and output gap intervals for the G7
 economies are used as examples. This new methodology increases the
 usefulness of these filters by overcoming the absence of confidence
 intervals. 
Journal: Applied Economics 
Pages: 741-749 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500048985 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500048985 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:741-749




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Florio 
Author-X-Name-First: Anna 
Author-X-Name-Last: Florio 
Title: Asymmetric monetary policy: empirical evidence for Italy 
Abstract:
  A growing body of empirical work has examined the potential asymmetry in
 the effects of monetary policy on United States real activity. This study
 looks for such an empirical evidence for Italy in the period 1982-1998.
 Monetary shocks are obtained as residuals from a central bank reaction
 function where the three-months interbank rate is taken as the indicator
 of the monetary policy stance. The effects of these positive and negative
 shocks on output are statistically different from zero and the null of
 symmetry between the two is rejected in favour of negative shocks having a
 greater impact on real output growth, thus confirming an asymmetric effect
 of monetary policy even for Italy. 
Journal: Applied Economics 
Pages: 751-764 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500061012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061012 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:751-764




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel 
Author-X-Name-First: Rajeev 
Author-X-Name-Last: Goel 
Author-Name: Michael Nelson 
Author-X-Name-First: Michael 
Author-X-Name-Last: Nelson 
Title: Tobacco policy and tobacco use: differences across tobacco types, gender and age 
Abstract:
  Using state-level data for 1997, this paper studies the effectiveness of
 tobacco policies at reducing tobacco use across different population
 groups in the USA. The effectiveness of tax (price)-based and non-price
 tobacco policies are examined on tobacco prevalence (including cigarettes
 and smokeless tobacco) across gender and age. Besides shedding light on
 the efficacy of sub-national tobacco policies, the results also examine
 the extent of spillovers of policy actions across tobacco types.
 Significant differences in tobacco use are found across gender, age,
 policies, and between smoking and smokeless tobacco. Policy implications
 are discussed. 
Journal: Applied Economics 
Pages: 765-771 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000337415 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337415 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:765-771




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Hafez Rehman 
Author-X-Name-First: Hafez 
Author-X-Name-Last: Rehman 
Title: Stability of the money demand function in Asian developing countries 
Abstract:
  Previous studies that estimated the money demand function in Asian
 developing countries either employed traditional estimation techniques or
 recently popularized cointegration technique. While the first group
 suffers from 'spurious regression' problems, the second group interpreted
 their finding of cointegration as a sign of stability of estimated
 parameters. This study, after incorporating the CUSUM and CUSUMSQ tests
 into cointegration analysis, shows that in some Asian countries even
 though real M1 or M2 monetary aggregates are cointegrated with their
 determinants, the estimated parameters are unstable. 
Journal: Applied Economics 
Pages: 773-792 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000337424 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337424 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:773-792




Template-Type: ReDIF-Article 1.0
Author-Name: Adelina Gschwandtner 
Author-X-Name-First: Adelina 
Author-X-Name-Last: Gschwandtner 
Title: Profit persistence in the 'very' long run: evidence from survivors and exiters 
Abstract:
  One of the main shortcomings of the profit persistence literature is the
 fact that it looks only at surviving companies. This paper uses a unique
 dataset to analyse profit persistence in two different samples of
 stationary series: 85 surviving US companies from 1950-1999 and 72
 exiters. While the exiters perform more competitively than the survivors
 there is still significant evidence for profit persistence in both
 samples. Concentration and growth of the industry as well as size and
 volatility of profits seem to play an important role in explaining
 persistence. 
Journal: Applied Economics 
Pages: 793-806 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000337406 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337406 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:793-806




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Agbola 
Author-X-Name-First: Frank 
Author-X-Name-Last: Agbola 
Author-Name: Chartri Kunanopparat 
Author-X-Name-First: Chartri 
Author-X-Name-Last: Kunanopparat 
Title: Determinants of exchange rate practices: some empirical evidence from Thailand 
Abstract:
  Although Thailand has achieved a spectacular average annual growth rate
 of 8% in the past two decades, due largely to the opening of the economy
 to international trade, there is not yet a consensus on the exchange rate
 regime that is most suited to the restoration of sustained growth in
 Thailand. This study empirically investigates the predictors of exchange
 rate regimes in Thailand using quarterly data spanning the period 1990:1
 and 2002:3. Results indicate that the government is likely to choose a
 pegged exchange rate regime in periods of monetary shocks and
 unsustainable public finance whereas an open economy with a degree of
 economic development and foreign reserves will encourage the government to
 opt for a flexible exchange regime in Thailand. 
Journal: Applied Economics 
Pages: 807-816 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500061061 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061061 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:807-816




Template-Type: ReDIF-Article 1.0
Author-Name: Yeonbae Kim 
Author-X-Name-First: Yeonbae 
Author-X-Name-Last: Kim 
Author-Name: Jeong-Dong Lee 
Author-X-Name-First: Jeong-Dong 
Author-X-Name-Last: Lee 
Author-Name: Daeyoung Koh 
Author-X-Name-First: Daeyoung 
Author-X-Name-Last: Koh 
Title: Effects of consumer preferences on the convergence of mobile telecommunications devices 
Abstract:
  Amidst the overall trend of convergence in information technology, device
 convergence is noteworthy. This study looks at the possible direction of
 device convergence based on consumer preferences for the main attributes
 of the mobile terminal of the future. Conjoint analysis and a mixed logit
 model using a Bayesian approach with Gibbs sampling are used to learn
 consumer preferences. Results show that consumers generally prefer a
 keyboard and a medium-sized display, although at present most consumers
 are indifferent to whether the terminal provides high-quality Internet
 service and to whether it operates many kinds of application programs or
 programs originally designed for personal computers. Given the
 heterogeneity of consumer preferences, partial, rather than perfect,
 device convergence is anticipated. Implications for the future of device
 convergence and how it will affect other types of convergence are drawn. 
Journal: Applied Economics 
Pages: 817-826 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000337398 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337398 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:817-826




Template-Type: ReDIF-Article 1.0
Author-Name: John Cotter 
Author-X-Name-First: John 
Author-X-Name-Last: Cotter 
Title: Tail behaviour of the euro 
Abstract:
  This paper empirically analyses risk in the euro relative to other
 currencies. Comparisons are made between a subperiod encompassing the
 final transitional stage to full monetary union with a subperiod prior to
 this. Stability in the face of speculative attack is examined using
 Extreme Value Theory to obtain estimates of tail exchange rate changes.
 The findings are encouraging. The euro's common risk measures do not
 deviate substantially from other currencies. Also, the euro is stable in
 the face of speculative pressure. For example, the findings consistently
 show the euro being less risky than the yen, and having similar inherent
 risk to the Deutsche mark, the currency that it is essentially replacing. 
Journal: Applied Economics 
Pages: 827-840 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000338694 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000338694 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:827-840




Template-Type: ReDIF-Article 1.0
Author-Name: Yufei Jin 
Author-X-Name-First: Yufei 
Author-X-Name-Last: Jin 
Author-Name: Roderick Rejesus 
Author-X-Name-First: Roderick 
Author-X-Name-Last: Rejesus 
Author-Name: Bertis Little 
Author-X-Name-First: Bertis 
Author-X-Name-Last: Little 
Title: Binary choice models for rare events data: a crop insurance fraud application 
Abstract:
  This study implements a recently proposed score test that could help
 guide insurance fraud researchers in deciding whether to use a logit or a
 probit model in predicting insurance fraud probabilities, especially when
 the occurrence of ones in the dependent variable is much less than zeros.
 The test is easily implemented in a crop insurance fraud context and seems
 to be a promising method that could be applicable to analysing and
 detecting potentially fraudulent claims in various lines of insurance. 
Journal: Applied Economics 
Pages: 841-848 
Issue: 7 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000337433 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337433 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:841-848




Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon 
Author-X-Name-First: Franklin 
Author-X-Name-Last: Mixon 
Author-Name: Len Trevino 
Author-X-Name-First: Len 
Author-X-Name-Last: Trevino 
Title: Is there gender discrimination in named professorships? An econometric analysis of economics departments in the US South 
Abstract:
  This study examines the correlates of the probability that an individual
 academician holds a named professorship. Named professorships, like other
 positions within an organization, are determined by a mixture of market
 and non-market forces. Thus, both merit (both past and expected future
 productivity) and discrimination may play a role. Regression results and
 Blinder-Oaxaca decomposition tests presented here support a conclusion of
 gender discrimination in the named professorship process at American
 institutions of higher education. Specifically, it is found that gender
 discrimination results in a 7.6 percentage point disadvantage for females
 (relative to males) regarding the likelihood of holding a named
 professorship in economics. 
Journal: Applied Economics 
Pages: 849-854 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500048902 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500048902 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:849-854




Template-Type: ReDIF-Article 1.0
Author-Name: Jef Vuchelen 
Author-X-Name-First: Jef 
Author-X-Name-Last: Vuchelen 
Author-Name: Maria-Isabel Gutierrez 
Author-X-Name-First: Maria-Isabel 
Author-X-Name-Last: Gutierrez 
Title: Do the OECD 24 month horizon growth forecasts for the G7-countries contain information? 
Abstract:
  The OECD produces two-year-ahead growth forecasts for the G7-countries
 since 1987; these forecasts have never been evaluated. A regression is
 developed that tests for the information content of the forecasts. The
 idea is that this content is the added value forecasters incorporate in
 their forecasts. The information content is defined relative to the
 forecast for the previous year. In the end, the added value contained in
 the current year forecast is calculated relative to the last observation.
 The test consists in checking whether the information content reduces the
 forecasts error. The study begins with a calculation of the usual accuracy
 statistics. These indicate an extreme low quality for the forecasts. The
 regression tests support this conclusion although the forecasts for Japan
 do possess some information. Alarming for users of forecasts is that there
 are no obvious alternatives. 
Journal: Applied Economics 
Pages: 855-862 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500061350 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061350 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:855-862




Template-Type: ReDIF-Article 1.0
Author-Name: Andrzej Cie&#x15b;lik 
Author-X-Name-First: Andrzej 
Author-X-Name-Last: Cie&#x15b;lik 
Title: Regional characteristics and the location of foreign firms within Poland 
Abstract:
  This article investigates the location determinants of firms with foreign
 capital participation within Poland using the regional data set from 1993
 to 1998. It is found that the concentration of foreign economic activity
 is positively related to industry and service agglomeration and the road
 network and negatively to the unemployment rate. Traditional regional
 characteristics such as GDP, wage rate and education, often regarded as
 important location determinants, are not robust with respect to the
 specification of the estimating equation. The special economic zone
 variable is not found to be statistically significant in any specification
 estimated. Geographic location dummies confirm that foreign firms prefer
 Central and South-Western regions over Eastern parts of Poland having
 controlled for their characteristics. 
Journal: Applied Economics 
Pages: 863-874 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500061087 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061087 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:863-874




Template-Type: ReDIF-Article 1.0
Author-Name: Manohar Singh 
Author-X-Name-First: Manohar 
Author-X-Name-Last: Singh 
Author-Name: Sheri Faircloth 
Author-X-Name-First: Sheri 
Author-X-Name-Last: Faircloth 
Title: The impact of corporate debt on long term investment and firm performance 
Abstract:
  Prior research indicates a linkage between debt, research and development
 (R&D) and physical investment, and that the relationship varies depending
 on the type of firm (science versus non-science). Leverage also plays a
 multidimensional role in corporate performance and growth. The
 relationship between financial leverage and R&D expenditure is analysed
 using a sample of large United States (US) manufacturing firms. Then, the
 impact of leverage on R&D expenditure is studied using corporate
 performance drivers as intermediate variables. The results indicate that
 there is a strong negative relationship between the degree of financial
 leverage and the level of R&D expenditure that firms undertake. The
 negative relationship is robust to changes in model specifications and
 sample periods. More importantly, the results show that it is higher
 leverage that leads to lower R&D expense rather than R&D causing
 variations in future leverage. In addition, the results indicate that
 higher leverage adversely influences future investment in R&D which may in
 turn lead to negative impact on long term operating performance and future
 growth opportunities. 
Journal: Applied Economics 
Pages: 875-883 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500076762 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500076762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:875-883




Template-Type: ReDIF-Article 1.0
Author-Name: Clive Belfield 
Author-X-Name-First: Clive 
Author-X-Name-Last: Belfield 
Title: Workforce gender effects on firm performance and workers' pay: evidence for the UK 
Abstract:
  Using linked workplace-worker data for the UK, a number of hypotheses are
 tested related to individual gender and the gender composition of the
 workforce. The proportion of female workers per establishment is strongly
 negatively associated with median workplace pay. There is some evidence
 that workplace performance (but not employment size or growth) is
 positively associated with the female-male workforce ratio. For workers,
 the female wage penalty (which is substantial) is strongly influenced by
 the female-male workforce ratio. In addition, commensurate with gender
 discrimination, those who manage female workers receive lower wages but
 professional workers in the same establishments do not. 
Journal: Applied Economics 
Pages: 885-891 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500048829 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500048829 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:885-891




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cook 
Author-Name: Alan Speight 
Author-X-Name-First: Alan 
Author-X-Name-Last: Speight 
Title: A deeper look at asymmetries in UK consumers' expenditure: the nonparametric analysis of 100 disaggregates 
Abstract:
  The literature on testing for the presence of cyclical asymmetry in UK
 consumers' expenditure is extended via the application of nonparametric
 tests to data subject to a higher degree of disaggregation than considered
 in previous studies. The results obtained at an intermediate level of
 disaggregation depict a positive relationship between the durability of
 goods and the degree of asymmetry they exhibit. At high levels of
 disaggregation to specific expenditure categories, it is found that the
 aggregate and intermediate evidence of deepness asymmetry is driven by a
 relatively small number of expenditures, with almost no evidence of
 deepness asymmetry in non-durable categories of expenditure. Prominent
 among the durable and semi-durable good expenditure categories exhibiting
 significant positive deepness asymmetry are expenditures relating to
 housing fittings and communication, consistent with a degree of
 'lumpiness' in expenditure which may be associated with the impact of
 credit rationing or threshold effects. 
Journal: Applied Economics 
Pages: 893-900 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500061301 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061301 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:893-900




Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Charemza 
Author-X-Name-First: Wojciech 
Author-X-Name-Last: Charemza 
Author-Name: Daniela Hristova 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Hristova 
Author-Name: Peter Burridge 
Author-X-Name-First: Peter 
Author-X-Name-Last: Burridge 
Title: Is inflation stationary? 
Abstract:
  Ninety-three world-wide inflation series are tested for unit roots.
 Treating the data series' innovations as draws from a symmetric stable
 distribution, with possibly infinite variance, reduces the number that
 appear stationary. 
Journal: Applied Economics 
Pages: 901-903 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500076721 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500076721 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:901-903




Template-Type: ReDIF-Article 1.0
Author-Name: Josep Tribo 
Author-X-Name-First: Josep 
Author-X-Name-Last: Tribo 
Title: An analysis of the length of labour and financial contracts: a study for Spain 
Abstract:
  This study investigates the connection between the duration of financial
 contracts and that of labour contracts. Workers with long-term contracts
 have incentives to invest in training. This makes them attractive to the
 entrepreneur. Furthermore, this behaviour will be reinforced if financial
 contracts are long-term, because it reduces the probability of an early
 liquidation as well as the dismissal of trained workers. As a conclusion,
 significant increases in the length of financing contracts should be
 accompanied by corresponding increases in the length of labour contracts.
 Support for this theoretical contention is found by testing it on a
 dataset composed of Spanish manufacturing firms for the period 1991-2000. 
Journal: Applied Economics 
Pages: 905-916 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500081762 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:905-916




Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Figuerola-Ferretti 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Figuerola-Ferretti 
Title: Prices and production cost in aluminium smelting in the short and the long run 
Abstract:
  The main objective of this study is to reflect the institutional changes
 that have characterized the aluminium industry as a result of the
 introduction of London's Metal Exchange (LME) trading. In doing this, it
 is shown that product prices are taken exogenously and linked to input
 prices via risk sharing agreements. This forces producers, in a
 competitive environment, to minimize costs. The latter is completed with a
 description of their investment decision-making mechanism, in which
 investment is determined by cost, and a measure of Tobin's q. The main
 contributions of this study are: the use of a proprietary and complete
 industry data set that allows one (a) to set up the short run input and
 output price relationships; (b) to model the optimizing behaviour of the
 sector via a flexible cost function (translog) allowing scale economies
 and non-constant factor substitution; and (c) to describe the
 investment-process that has emerged with the introduction of LME trading. 
Journal: Applied Economics 
Pages: 917-928 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500061244 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061244 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:917-928




Template-Type: ReDIF-Article 1.0
Author-Name: Selcuk Caner 
Author-X-Name-First: Selcuk 
Author-X-Name-Last: Caner 
Author-Name: Zeynep Onder 
Author-X-Name-First: Zeynep 
Author-X-Name-Last: Onder 
Title: Sources of volatility in stock returns in emerging markets 
Abstract:
  In this study, the short-term fluctuations in the monthly returns on
 composite indexes of 17 emerging markets affected by the financial crises
 in the late 1990s and 2000 are decomposed with vector autoregressive
 estimates. The results are compared to the behaviour of variation in
 returns in developed markets. Three different models are estimated for
 each market. Due to first order autocorrelations, lagged returns
 contribute significantly to return volatility in emerging markets.
 Decomposition of variances indicates that dividend yield and interest rate
 are determining factors of volatility, but at varying degrees in different
 emerging markets. However, the role of dividend yield is not as strong as
 it is in the developed markets as efficient markets hypothesis would
 imply. In some cases, exchange rates significantly influence market
 volatility. Fluctuations in the world portfolio return have a small effect
 on return volatility in national markets. However, there are significant
 differences across all emerging markets that point to differences in
 market structures and particular conditions in each country. Significant
 contributions of interest rates, exchange rates and inflation imply the
 role of monetary and fiscal policy as precedents of financial crises. 
Journal: Applied Economics 
Pages: 929-941 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500061046 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061046 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:929-941




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Perez-Mayo 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Perez-Mayo 
Title: Identifying deprivation profiles in Spain: a new approach 
Abstract:
  Usually, an indirect approach for measuring deprivation or poverty is
 used with poverty lines. However, some studies have used a direct approach
 to measure deprivation or poverty. The aim of this study is improving the
 identification of the poor people. The central point of the concept of
 deprivation used is related to the opportunity to have or do something.
 Therefore, deprivation means an inability to get the goods, facilities and
 opportunities, which are usual in the household environment. Since all of
 the needed variables are categorical, the latent class model is used to
 solve this problem because it is the best model to achieve this objective. 
Journal: Applied Economics 
Pages: 943-955 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500060972 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500060972 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:943-955




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Alberta Oliveira 
Author-X-Name-First: Maria Alberta 
Author-X-Name-Last: Oliveira 
Author-Name: Carlos Santos 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Santos 
Title: Assessing school efficiency in Portugal using FDH and bootstrapping 
Abstract:
  This study explores a new data set that contains information both on
 inputs and outputs for a sample of Portuguese secondary schools. An FDH
 reference technology is used to determine radial technical efficiency
 scores and slacks. Although it is known that there is no reason to assume
 convexity in the study of education efficiency frontiers, this is the
 first study ever to use FDH at the school level, effectively relaxing the
 convexity assumption. A two-stage approach is used, whereby the
 significant environmental variables that explain FDH efficiency scores and
 slacks are identified. For the purpose of statistical inference, the first
 application of the bootstrapping algorithms suggested by Simar and Wilson
 (2003) is conducted. The study concludes that the unemployment rate,
 access to health care services, adult education and living infrastructures
 are determinants of school efficiency. The differences between the coast
 and the interior of Portugal seem to be more relevant, as far as school
 efficiency is concerned, than whether or not the school belongs to one of
 the major coast metropolitan areas. 
Journal: Applied Economics 
Pages: 957-968 
Issue: 8 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500061095 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061095 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:957-968




Template-Type: ReDIF-Article 1.0
Author-Name: David Hauner 
Author-X-Name-First: David 
Author-X-Name-Last: Hauner 
Title: Explaining efficiency differences among large German and Austrian banks 
Abstract:
  Cost-efficiency, scale efficiency, and productivity change are estimated
 by data envelopment analysis; and cost-efficiency is regressed on
 explanatory variables. No evidence is found for average productivity
 responding to deregulation over the period studied. State-owned banks are
 found to be more cost-efficient (likely owing to cheaper funds) and
 cooperative banks to be about as cost-efficient as private banks.
 Increasing economies of scale but decreasing economies of scope provide
 rationale for M&As among banks with similar product portfolios. Interbank
 and capital market funding is found to be more cost-efficient than
 deposits when the cost of retail networks is controlled. 
Journal: Applied Economics 
Pages: 969-980 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500081820 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081820 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:969-980




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Hayford 
Author-X-Name-First: Marc 
Author-X-Name-Last: Hayford 
Title: Fiscal policy and national saving 
Abstract:
  This paper uses structural vector autoregressions along with structural
 measures of fiscal policy to measure the dynamic impact of fiscal policy
 shocks on the output gap and national saving. Positive shocks to
 government purchases and negative shocks to real net taxes are found to
 increase the output gap. Positive shocks to the government's structural
 surplus increases national saving although the effects are small. Positive
 shocks to government purchases are found to substantially reduce national
 saving. Negative shocks to real net tax revenues as a share of potential
 GDP have a small negative impact on national saving. 
Journal: Applied Economics 
Pages: 981-992 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109118 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109118 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:981-992




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen 
Author-X-Name-First: Chung-Hua 
Author-X-Name-Last: Shen 
Title: Cost efficiency and banking performances in a partial universal banking system: application of the panel smooth threshold model 
Abstract:
  This paper studies the cost efficiency of bank in a partial universal
 banking system (PUBS), Taiwan. Instead of assuming one common technology
 in the bank cost function, two technologies are assumed to be imbedded in
 the cost function. Fee revenues are used as threshold to divide the banks
 into two technologies. A bank whose fee revenues exceeding the threshold
 is designated as universal bank technology while falling below the
 threshold is designated as traditional deposit-loan technology. The panel
 smooth transition model is adopted, which allows banks to smoothly adjust
 between the two technologies. Two criteria are suggested, overbanking and
 the trend-toward-fee revenues, to assess the new model's performances.
 With respect to scale economies, the results do find a panel smooth
 transition model yield more reasonable results than the conventional OLS
 and random effect of panel data approach. Based on the panel smooth
 transition model, the optimal fixed asset size is around ten billion New
 Taiwan dollars. 
Journal: Applied Economics 
Pages: 993-1009 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500076838 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500076838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:993-1009




Template-Type: ReDIF-Article 1.0
Author-Name: Angel Alanon 
Author-X-Name-First: Angel 
Author-X-Name-Last: Alanon 
Author-Name: M. Gomez-Antonio 
Author-X-Name-First: M. 
Author-X-Name-Last: Gomez-Antonio 
Title: Estimating the size of the shadow economy in Spain: a structural model with latent variables 
Abstract:
  There has recently been a revival of international interest in measuring
 the size of the shadow economy. The current study adopts an approach to
 the Spanish case that is based on the theory of unobservable variables.
 This methodology involves the estimation of structural models (MIMIC)
 which analyses a set of causes of the shadow economy while simultaneously
 taking into account its influence upon a series of indicators. The
 proposed model permits the determination of a relative evolution over time
 of the size of the shadow economy, which requires the calibration of the
 model with an exogenous estimation in order to obtain real values. The
 exogenous estimation employed is that obtained by a monetary method based
 on a money demand function. The results show a considerable shadow
 economy, measuring between 8 and 18.8% of GDP in the period 1976-2002, and
 demonstrate that the shadow economy is significantly influenced by the tax
 burden, the degree of regulation and unit labour costs. A positive
 correlation is obtained between GDP, money demand and the level of the
 shadow economy. 
Journal: Applied Economics 
Pages: 1011-1025 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500081788 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1011-1025




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Gorman 
Author-X-Name-First: Michael 
Author-X-Name-Last: Gorman 
Title: Estimation of an implied price elasticity of demand through current pricing practices 
Abstract:
  Researchers have long pursued better methods to estimate price elasticity
 of market-level demand. Due to a plethora of empirical problems, the
 estimates produced in many empirical studies leave researchers with wide
 confidence intervals that do little to clarify demand conditions. As a
 result, these estimates are of limited practical use to the firm facing a
 firm-level demand. Here, a non-statistical methodology based on seller
 optimization behaviour is applied that creates an 'implied elasticity' of
 firm-level demand that is robust, intuitively plausible and free of
 oppressive data requirements. These elasticities are tested in an applied
 setting against pricing managers' surveyed estimates for customer price
 sensitivity for freight rail transportation services and it is found that
 the estimate is consistent with their pricing behaviour. This methodology
 is recommended for creating a simple, plausible starting point estimate
 for firm-level price elasticities, or using this calculation as an input
 to statistical studies. 
Journal: Applied Economics 
Pages: 1027-1035 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500091969 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500091969 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1027-1035




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Faria 
Author-X-Name-First: Ana 
Author-X-Name-Last: Faria 
Author-Name: Paul Fenn 
Author-X-Name-First: Paul 
Author-X-Name-Last: Fenn 
Author-Name: Alistair Bruce 
Author-X-Name-First: Alistair 
Author-X-Name-Last: Bruce 
Title: Production technologies and technical efficiency: evidence from Portuguese manufacturing industry 
Abstract:
  This paper aims to test whether a given type of process innovation,
 namely flexible production technologies (FPTs), contributes to increased
 firm efficiency. Using one-year firm data from the Portuguese
 manufacturing industry and applying a parametric stochastic frontier
 approach, individual technical efficiencies are obtained and their
 determinants simultaneously estimated, using a single-step procedure
 recently proposed by Battese and Coelli (1995). The results support the
 hypothesis that technological flexibility, measured through the use of
 FPTs, is important in explaining differences in efficiency. Furthermore,
 given the specifications of the stochastic frontier function, the null
 hypothesis that Portuguese firms are fully technically efficient is
 rejected. 
Journal: Applied Economics 
Pages: 1037-1046 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109191 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109191 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1037-1046




Template-Type: ReDIF-Article 1.0
Author-Name: Andries de Grip 
Author-X-Name-First: Andries 
Author-X-Name-Last: de Grip 
Author-Name: Inge Sieben 
Author-X-Name-First: Inge 
Author-X-Name-Last: Sieben 
Title: The effects of human resource management on small firms' productivity and employees' wages 
Abstract:
  This paper analyses whether employees and firms differently benefit from
 particular human resource (HR) practices. The focus is on small firms that
 may be badly informed on the impact of HR practices on firm performance.
 In this study on Dutch pharmacies, it is found that firms do not reward
 employees' skills according to their contribution to firms' productivity,
 as (1) employees are over-rewarded for their sector-specific skills and
 under-rewarded for the productivity enhancing effect of their computer
 skills and (2) employees' work experience positively affects their wages
 but does not have real productivity effects. Moreover, it is found that
 training employees in case of vacancy problems seems to be an adequate HR
 practice, since it increases productivity without affecting the average
 wage level. The opposite holds for offering higher wages to newly
 recruited employees. Furthermore, we find that only the employees benefit
 from performance evaluation interviews, whereas employing many employees
 by temporary contracts appears to have a negative effect on productivity,
 without affecting the wage level. 
Journal: Applied Economics 
Pages: 1047-1054 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500092074 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500092074 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1047-1054




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Darrat 
Author-X-Name-First: Ali 
Author-X-Name-Last: Darrat 
Author-Name: Fatima Al-Shamsi 
Author-X-Name-First: Fatima 
Author-X-Name-Last: Al-Shamsi 
Title: On the path of integration in the Gulf region 
Abstract:
  It is examined whether the six countries comprising the Gulf Cooperation
 Council (GCC) are sufficiently compatible to form a viable economic and
 financial block in the Gulf region. Despite long and numerous governmental
 attempts since the mid 1980s, and in spite of public pressures to expedite
 the process, these countries have thus far failed to achieve full economic
 and financial integration. Empirical evidence suggests that this apparent
 failure is unlikely the outcome of economic or financial incompatibility
 among the countries in the region. The results imply that more efforts
 should be directed at resolving possible sociopolitical differences that
 may have hampered real progress toward the emergence of a genuine and
 effective bloc in the Gulf region. 
Journal: Applied Economics 
Pages: 1055-1062 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109027 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1055-1062




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: New evidence on purchasing power parity from 17 OECD countries 
Abstract:
  There is a large literature that investigates whether or not real
 exchange rates are stationary in an attempt to unravel support for
 purchasing power parity (PPP). At best, the empirical results are mixed.
 This paper applies a unit root test that allows for a simultaneous
 structural break in the intercept and slope, shown by Sen (2003) to
 minimize power distortions, to examine PPP for 17 OECD countries. Our
 results on PPP are mixed. When the real exchange rate is based on the US
 dollar, evidence is found of PPP for only France, Portugal and Denmark.
 When the real exchange rate is based on the Deutschmark, we find evidence
 of PPP for Austria, Belgium, Norway, Spain, Netherlands, Switzerland, and
 Denmark. 
Journal: Applied Economics 
Pages: 1063-1071 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500081713 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081713 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1063-1071




Template-Type: ReDIF-Article 1.0
Author-Name: Arnaud Dupuy 
Author-X-Name-First: Arnaud 
Author-X-Name-Last: Dupuy 
Author-Name: Lex Borghans 
Author-X-Name-First: Lex 
Author-X-Name-Last: Borghans 
Title: Supply and demand, allocation and wage inequality: an international comparison 
Abstract:
  An allocation model of workers differentiated by their field of study is
 developed to test whether international differences in the wage structure
 can be explained by differences in labour demand and supply in each
 country. The model explicitly takes into account the effects of supply and
 demand shifts on the allocation structure to disentangle country specific
 differences in the recruitment for one occupation from real supply-demand
 effects. Empirical results based on data for nine countries show that
 cross-country differences in wage inequality explain at least two-third of
 the differences in labour demand and supply. 
Journal: Applied Economics 
Pages: 1073-1088 
Issue: 9 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500076671 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500076671 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1073-1088




Template-Type: ReDIF-Article 1.0
Author-Name: Torben Andersen 
Author-X-Name-First: Torben 
Author-X-Name-Last: Andersen 
Author-Name: Tryggvi Thor Herbertsson 
Author-X-Name-First: Tryggvi Thor 
Author-X-Name-Last: Herbertsson 
Title: Quantifying globalization 
Abstract:
  Globalization is much debated, but is it possible to make reliable ranks
 of which countries are the most integrated internationally? Traditionally
 resort is taken to trade measures, but even considering only economic
 integration this measure disregards a number of aspects. This paper
 proposes a single measure or index of globalization based on several
 indicators of economic integration combined by use of the multivariate
 technique of factor analysis. The index is calculated for 23 OECD
 countries, and among the findings are that Ireland is ranked as the most
 globalized country during the 1990s, while the UK was at the top during
 the 1980s. Some of the most notable changes in the rankings are the
 decline of the USA, Canada, and to a lesser extent Japan and Norway. There
 are notable improvements in the ranking for Finland, Italy, Portugal,
 Spain and Sweden. For Portugal and Spain the changes seem to follow EU
 membership in the mid-1980s. 
Journal: Applied Economics 
Pages: 1089-1098 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118200 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118200 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1089-1098




Template-Type: ReDIF-Article 1.0
Author-Name: Sonya Kostova Huffman 
Author-X-Name-First: Sonya Kostova 
Author-X-Name-Last: Huffman 
Author-Name: Helen Jensen 
Author-X-Name-First: Helen 
Author-X-Name-Last: Jensen 
Title: Linkages among welfare, food assistance programmes and labour supply: evidence from the survey of programme dynamics 
Abstract:
  At the centre of the debate on welfare reform is whether incentives-based
 systems help poor families move out of poverty into jobs. Recent data from
 the first Survey of Programme Dynamics longitudinal and the 1998
 experimental data files allow evaluation of the interaction among the Food
 Stamp Programme (FSP), Temporary Assistance for Needy Families (TANF)
 programme and labour force participation under different programme design
 and economic conditions. A model that incorporates jointly determined
 programmes participation and work decisions is applied to a sample of
 working age, lower income and asset households. Participation in TANF
 increases the probability of FSP participation and decreases the
 probability of being in the work force; working decreases the probability
 of receiving food stamps. Work, TANF, and FSP participation are related,
 and TANF and FSP participation rates among poor households who are
 potentially eligible for TANF are sensitive to changes in programme
 parameters; as expected, labour force participation is affected by the
 general economic conditions. 
Journal: Applied Economics 
Pages: 1099-1113 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109126 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109126 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1099-1113




Template-Type: ReDIF-Article 1.0
Author-Name: Pekka Ilmakunnas 
Author-X-Name-First: Pekka 
Author-X-Name-Last: Ilmakunnas 
Author-Name: Mika Maliranta 
Author-X-Name-First: Mika 
Author-X-Name-Last: Maliranta 
Title: Worker inflow, outflow, and churning 
Abstract:
  Linked employer-employee data from Finnish business sector is used in
 analysing worker turnover. The data set is an unbalanced panel with over
 219 000 observations in 1991-97. The churning (excess worker turnover),
 worker inflow, and worker outflow rates are explained by plant and
 employee characteristics. The probabilities of observing non-zero
 churning, inflow, and outflow rates increase with plant size. The
 magnitudes of the non-zero churning and inflow rates depend positively on
 size, but the magnitude of outflow rate depends negatively on size.
 High-wage plants have low turnover; plants with large within-plant
 variation in wages have high turnover. Average tenure of employees has a
 negative impact on turnover. High plant employment growth increases
 churning and separation but reduces hiring in the next year. Also
 controlled are average age and education of employees, shares of women and
 homeowners among employees, foreign ownership, ownership changes, and
 regional unemployment. 
Journal: Applied Economics 
Pages: 1115-1133 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109621 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109621 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1115-1133




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Larch 
Author-X-Name-First: Martin 
Author-X-Name-Last: Larch 
Author-Name: Matteo Salto 
Author-X-Name-First: Matteo 
Author-X-Name-Last: Salto 
Title: Fiscal rules, inertia and discretionary fiscal policy 
Abstract:
  In current practice, changes in the cyclically-adjusted budget balance
 (CAB) are interpreted as reflecting the effort of discretionary fiscal
 policy. This paper shows that such an interpretation is not a sufficiently
 accurate description of the behaviour of fiscal policy, as, in some cases,
 it may conceal an important deficit bias. Specifically, as growth
 projections are an important building block of budgetary plans, systematic
 optimism in forecasting growth, coupled with pervasive lags and inertia in
 the implementation phase of the budget, will result in a fiscal expansion
 compared to plans, even in the absence of discretionary measures. In order
 to track down this kind of passive behaviour in the light of growth
 surprises or sanguine growth assumptions the traditional reading of the
 CAB needs to be adjusted. This is achieved by relaxing the benchmark
 assumption according to which, under unchanged fiscal policy, the
 deficit-to-GDP ratio is invariant to growth. An empirical application to
 public finance data of four large EU countries shows that passive
 behaviour is an important element in practice, as forecast errors are
 significant in explaining changes in the CAB. Moreover, in some cases
 official growth forecasts appear to have a clear upward bias. 
Journal: Applied Economics 
Pages: 1135-1146 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109589 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109589 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1135-1146




Template-Type: ReDIF-Article 1.0
Author-Name: Yener Kandogan 
Author-X-Name-First: Yener 
Author-X-Name-Last: Kandogan 
Title: Power analysis of the Nice Treaty on the future of European integration 
Abstract:
  Power analysis of changes in voting weights and rules in the Nice Treaty
 is done by applying methods that use Shapley-Shubik and Banzhaf indices.
 Significant decreases in voting power of small countries make widening of
 integration more acceptable to incumbent members due to small size of the
 applicants. Relative increases in the conciliatory power of smaller
 members, and relative increases in the independent power of bigger members
 make smaller members compromise more, and improve the position of large
 members for further deepening of the integration. Lastly, the fairness
 analysis reveals a more federalist EU in the way votes are distributed. 
Journal: Applied Economics 
Pages: 1147-1156 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109498 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109498 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1147-1156




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: The structure of tourist expenditure in Fiji: evidence from unit root structural break tests 
Abstract:
  The central aim of this paper is to investigate whether shocks to Fiji's
 tourism industry have a permanent effect or a transitory effect on tourist
 expenditure in Fiji. To accomplish this aim the Zivot and Andrews (1992)
 one break test and the Lumsdaine and Papell (1997) two break tests are
 used. The one break and two break tests reveal 1987 - the year of the
 military coups in Fiji - as the year of the break. Moreover, it is
 possible to reject the unit root null leading to the conclusion that
 shocks to Fiji's tourism industry have a transitory effect on tourist
 expenditure in Fiji. 
Journal: Applied Economics 
Pages: 1157-1161 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109373 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1157-1161




Template-Type: ReDIF-Article 1.0
Author-Name: Camilo Sarmiento 
Author-X-Name-First: Camilo 
Author-X-Name-Last: Sarmiento 
Author-Name: Richard Just 
Author-X-Name-First: Richard 
Author-X-Name-Last: Just 
Title: Empirical modelling of the aggregation error in the representative consumer model 
Abstract:
  This paper examines different approaches to modelling the aggregation
 error associated with the representative consumer model. Each approach is
 based on an analytical framework intended for modelling aggregate time
 series data on quantities and prices with potential additional measures of
 income distribution. Simple functions that track aggregation error over
 time are found to perform better than more complex and theoretically
 sophisticated models. An explanation is given based on typical time series
 characteristics of economic data. 
Journal: Applied Economics 
Pages: 1163-1175 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500123101 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500123101 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1163-1175




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Berument 
Author-Name: Nergiz Dincer 
Author-X-Name-First: Nergiz 
Author-X-Name-Last: Dincer 
Title: Denomination composition of trade and trade balance: evidence from Turkey 
Abstract:
  The currency denominations of a country's exports and imports are not
 necessarily the same. If this is the case, then a change in the exchange
 rate parity among major currencies will affect the trade balance. The
 empirical evidence provided from Turkey - where exports are mostly
 denominated in Euros and imports are mostly denominated in USD - suggests
 that an appreciation of the Euro against the USD would increase the output
 in the long-run, appreciate the local currency and improve the trade
 balance for the 1985:01 2003:07 period. 
Journal: Applied Economics 
Pages: 1177-1191 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109159 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109159 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1177-1191




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitris Christopoulos 
Author-X-Name-First: Dimitris 
Author-X-Name-Last: Christopoulos 
Author-Name: John Loizides 
Author-X-Name-First: John 
Author-X-Name-Last: Loizides 
Author-Name: Efthymios Tsionas 
Author-X-Name-First: Efthymios 
Author-X-Name-Last: Tsionas 
Title: The Abrams curve of government size and unemployment: evidence from panel data 
Abstract:
  This study investigates the long run relationship between government size
 and unemployment rate, the Abrams curve, using ten European countries over
 the period 1961-1999. To this end, panel cointegration analysis and
 estimation techniques appropriate for heterogeneous panels are made use
 of. The results support the idea that there is an Abrams curve, and the
 relation between government size and the unemployment rate is positive. 
Journal: Applied Economics 
Pages: 1193-1199 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109274 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109274 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1193-1199




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Besim 
Author-X-Name-First: Mustafa 
Author-X-Name-Last: Besim 
Author-Name: Glenn Jenkins 
Author-X-Name-First: Glenn 
Author-X-Name-Last: Jenkins 
Title: Tax compliance: when do employees behave like the self-employed? 
Abstract:
  Previous studies of the underreporting of income for tax purposes have
 used private employees as the benchmark to which other groups' compliance
 was measured. In this paper it is suggested that there are a number of
 circumstances when there will be an incentive for private employees and
 their employers to collude to understate employee wages and salaries for
 purposes of taxation. The existence of high marginal tax rates of income
 tax combined with high social security payroll taxes are the typical
 conditions that stimulate this behaviour. These conditions are present in
 North Cyprus. This paper examines a rich source of household consumption
 expenditure and income data for North Cyprus that allows one to separate
 out the consumption expenditures made by the self-employed, private
 employees and civil servants over specific periods of time. From the
 comparison of consumption expenditures on food by these three groups it is
 possible to estimate how much self-employed and the private employees
 understated their incomes as compared to the civil servants. It is found
 that in North Cyprus private employees understate their incomes by
 approximately the same proportion of their incomes as do the
 self-employed. 
Journal: Applied Economics 
Pages: 1201-1208 
Issue: 10 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109407 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109407 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1201-1208




Template-Type: ReDIF-Article 1.0
Author-Name: Krishna Paudel 
Author-X-Name-First: Krishna 
Author-X-Name-Last: Paudel 
Author-Name: Christopher McIntosh 
Author-X-Name-First: Christopher 
Author-X-Name-Last: McIntosh 
Title: Numeraire choice in agricultural supply analysis 
Abstract:
  Should the choice of numeraire price for modelling profit functions be
 arbitrary, or is more careful study needed? Here, the choice of numeraire
 is examined using tests for models specification and out-of-sample
 predictive accuracy based on the crop and livestock data obtained from
 Iowa. The results of this study indicate that, for this data set and
 functional form, it does indeed make a difference which numeraire you
 choose. This is in contrast to previous studies which, in general,
 indicated that the choice of numeraire equation is arbitrary or, more
 commonly, offered no justification for the netput chosen. 
Journal: Applied Economics 
Pages: 1209-1214 
Issue: 11 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500142085 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500142085 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1209-1214




Template-Type: ReDIF-Article 1.0
Author-Name: David Bivin 
Author-X-Name-First: David 
Author-X-Name-Last: Bivin 
Title: Gauging the performance of the linear-quadratic inventory model 
Abstract:
  The explanatory and predictive abilities of the infinite-horizon
 linear-quadratic inventory model are gauged using the flexible-accelerator
 model as a baseline. Tests of explanatory power for six nondurables
 industries indicate that the flexible accelerator has superior explanatory
 power for inventories and output in the majority of industries. Tests of
 predictive ability during the late 1990s also support the superiority of
 the flexible-accelerator model. 
Journal: Applied Economics 
Pages: 1215-1231 
Issue: 11 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118317 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118317 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1215-1231




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Barreiro 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Barreiro 
Author-Name: Mercedes Sanchez 
Author-X-Name-First: Mercedes 
Author-X-Name-Last: Sanchez 
Author-Name: Montserrat Viladrich-Grau 
Author-X-Name-First: Montserrat 
Author-X-Name-Last: Viladrich-Grau 
Title: How much are people willing to pay for silence? A contingent valuation study 
Abstract:
  Despite its major importance in the urban environment, the problem of
 noise has received little attention from environmental economists. In this
 paper the economic value of a noise reduction programme is evaluated. The
 chosen technique is contingent valuation using the recently proposed one
 and one-half bound question format. This new question format reduces the
 potential for response bias in multiple bound formats such as the double
 bound model while maintaining much of its efficiency. Through the
 estimations it is found that urban residents generally value noise
 negatively, that is, households are willing to pay for a noise reduction.
 In particular, it is found that households are willing to pay
 approximately four euros per decibel per year. A further finding is that
 interviewees show scope sensitivity; that is, households display a
 different willingness to pay for different degrees of noise reduction,
 most are willing to pay more for larger decreases in the level of
 disturbance from noise. 
Journal: Applied Economics 
Pages: 1233-1246 
Issue: 11 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500123234 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500123234 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1233-1246




Template-Type: ReDIF-Article 1.0
Author-Name: James Brox 
Author-X-Name-First: James 
Author-X-Name-Last: Brox 
Author-Name: Christina Fader 
Author-X-Name-First: Christina 
Author-X-Name-Last: Fader 
Title: Infrastructure investment and Canadian manufacturing productivity 
Abstract:
  This paper examines the relationship between Canadian public
 infrastructure and private output using a Constant Elasticity and
 Substitution-Translog (CES-TL) cost model to describe the interaction of
 the public and private sectors. We find public capital a substitute for
 private capital within the Canadian manufacturing sector. Additionally,
 the services of public capital enhance the productivity of private
 capital. Canadian manufacturing costs are characterized by economies of
 scale, indicating that less than optimal plant sizes dominated Canadian
 manufacturing sector during the study period. Advances in disembodied
 technical progress are also indicated. 
Journal: Applied Economics 
Pages: 1247-1256 
Issue: 11 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118382 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118382 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1247-1256




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Binner 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Binner 
Author-Name: R. K. Bissoondeeal 
Author-X-Name-First: R. K. 
Author-X-Name-Last: Bissoondeeal 
Author-Name: A. W. Mullineux 
Author-X-Name-First: A. W. 
Author-X-Name-Last: Mullineux 
Title: A composite leading indicator of the inflation cycle for the Euro area 
Abstract:
  We evaluate the performance of composite leading indicators of turning
 points of inflation in the Euro area, constructed by combining the
 techniques of Fourier analysis and Kalman filters with the National Bureau
 of Economic Research methodology. In addition, the study compares the
 empirical performance of Euro Simple Sum and Divisia monetary aggregates
 and provides a tentative answer to the issue of whether or not the UK
 should join the Euro area. Our findings suggest that, first, the cyclical
 pattern of the different composite leading indicators very closely reflect
 that of the inflation cycle for the Euro area; second, the empirical
 performance of the Euro Divisia is better than its Simple Sum counterpart
 and third, the UK is better out of the Euro area. 
Journal: Applied Economics 
Pages: 1257-1266 
Issue: 11 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500082133 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500082133 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1257-1266




Template-Type: ReDIF-Article 1.0
Author-Name: David Moreno 
Author-X-Name-First: David 
Author-X-Name-Last: Moreno 
Author-Name: Paulina Marco 
Author-X-Name-First: Paulina 
Author-X-Name-Last: Marco 
Author-Name: Ignacio Olmeda 
Author-X-Name-First: Ignacio 
Author-X-Name-Last: Olmeda 
Title: Risk forecasting models and optimal portfolio selection 
Abstract:
  This study analyses, from an investor's perspective, the performance of
 several risk forecasting models in obtaining optimal portfolios. The
 plausibility of the homoscedastic hypothesis implied in the classical
 Markowitz model is dicussed and more general models which take into
 account assymetry and time varying risk are analysed. Specifically, it
 studies whether ARCH-type based models obtain portfolios whose
 risk-adjusted returns exceed those of the classical Markowitz model. The
 same analysis is performed with models based on the Lower Partial Moment
 (LPM) which take into account the assymetry in the distribution of
 returns. The results suggest that none of the models achieve a clearly
 superior average performance. It is also found that models based on
 semivariance perform as well as those based on the variance, but not
 better than, even if the evaluation criterion is based on the
 Reward-to-Semivariance ratio. When attention turns to the analysis of
 worst case performance, the results are clearly different. Models which
 employ LPM with a high degree of risk aversion (n&#x3e;2) as the risk
 measure are consistently superior to those which employ a symmetric
 measure, either homoscedastic or heteroscedastic. 
Journal: Applied Economics 
Pages: 1267-1281 
Issue: 11 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109142 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1267-1281




Template-Type: ReDIF-Article 1.0
Author-Name: Jon Gjerde 
Author-X-Name-First: Jon 
Author-X-Name-Last: Gjerde 
Author-Name: Sverre Grepperud 
Author-X-Name-First: Sverre 
Author-X-Name-Last: Grepperud 
Author-Name: Snorre Kverndokk 
Author-X-Name-First: Snorre 
Author-X-Name-Last: Kverndokk 
Title: On adaptation and the demand for health 
Abstract:
  The purpose of this paper is to analyse the impacts of adaptation to
 failing health. This is done by integrating adaptation processes in a
 Grossman type of pure consumption model. Model simulations show that
 adaptation affects the health variables by lowering the incentives to
 invest in health, as well as smoothing the optimal health stock path over
 the life cycle. Whether or not the risk of mortality is an object of
 choice has important effects when studying adaptation, as well as for the
 joint development of the health variables. 
Journal: Applied Economics 
Pages: 1283-1301 
Issue: 11 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118663 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118663 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1283-1301




Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Hoffmann 
Author-X-Name-First: Rodolfo 
Author-X-Name-Last: Hoffmann 
Author-Name: Ana Lucia Kassouf 
Author-X-Name-First: Ana Lucia 
Author-X-Name-Last: Kassouf 
Title: Deriving conditional and unconditional marginal effects in log earnings equations estimated by Heckman's procedure 
Abstract:
  Although the Heckman approach has often been used in empirical analysis,
 the marginal effects, necessary to interpret the effect of the regressors
 on the dependent variable, appeared to be overlooked. Using the Heckman
 approach, general expressions are derived for calculating the conditional
 and unconditional marginal effects. Based on a sample of Brazilian women,
 the conditional and unconditional return to education are calculated for
 the logarithm of earnings equation estimated by Heckman's procedure,
 comparing them to the marginal effect of education obtained without
 correcting for selectivity bias. The same analysis is carried out for a
 discrete variable 'black'. 
Journal: Applied Economics 
Pages: 1303-1311 
Issue: 11 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118614 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118614 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1303-1311




Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Heyman 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Heyman 
Title: Pay inequality and firm performance: evidence from matched employer-employee data 
Abstract:
  A large matched employer-employee data set for Sweden is used to test
 several predictions from tournament theory. For white-collar workers a
 positive and significant effect of intra-firm wage dispersion on profits
 and average pay is found, using various measures of wage dispersion. This
 result is robust for controlling for firm differences in human capital and
 firm fixed-effects as well as for instrumenting the wage dispersion
 variable to take into account endogeneity of wage dispersion. Using data
 on around 10 000 managers, a positive and significant association between
 pay dispersion and profits is also found for executives. Further results
 include a positive relationship between market demand volatility and wage
 dispersion, measured as coefficient of variation in managerial pay, and a
 negative effect of the number of managers (contestants) on managerial pay
 spread. The first two results are in accordance with predictions from
 tournament theory, while the last one is not. 
Journal: Applied Economics 
Pages: 1313-1327 
Issue: 11 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500142101 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500142101 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1313-1327




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Steven Caudill 
Author-X-Name-First: Steven 
Author-X-Name-Last: Caudill 
Title: Financial development and economic growth: the case of Taiwan 
Abstract:
  This paper examines the relationship between financial development and
 economic growth in Taiwan from 1962 to 1998. Using a four-variable VAR
 model, the competing hypotheses of demand-following versus supply-leading
 are empirically tested. The results from Granger causality tests based on
 vector error-correction models (VECM) suggest unidirectional causality
 running from financial development (measured as the ratio of M2 to GDP) to
 economic growth. This result supports the supply-leading hypothesis for
 Taiwan. This finding highlights the importance of financial development in
 Taiwan's recent growth. 
Journal: Applied Economics 
Pages: 1329-1335 
Issue: 12 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684042000338702 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000338702 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1329-1335




Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Morana 
Author-X-Name-First: Claudio 
Author-X-Name-Last: Morana 
Title: The Japanese deflation: has it had real effects? Could it have been avoided? 
Abstract:
  Has deflation contributed to the long lasting stagnation of the Japanese
 economy? Could the Bank of Japan have stopped deflation by implementing a
 more expansionary monetary policy? Tentative answers are probably not to
 the first question, and probably yes to the second question. It is found
 that the total cost of deflation over the period 1995-2003 has been close
 to a 1.1% rate of lost GDP. Yet, on the basis of statistical significance
 and robustness to specification choices, this evidence is not compelling.
 On the other hand, the estimated positive linkage between nominal base
 money growth and inflation is significant and robust, even given current
 economic conditions. However, in order to be inflationary, monetary policy
 should have been more expansionary than what actually observed, even since
 the launch of the quantitative easing in 2001. 
Journal: Applied Economics 
Pages: 1337-1352 
Issue: 12 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500166340 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500166340 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1337-1352




Template-Type: ReDIF-Article 1.0
Author-Name: Jordan Shan 
Author-X-Name-First: Jordan 
Author-X-Name-Last: Shan 
Title: Does financial development 'lead' economic growth? A vector auto-regression appraisal 
Abstract:
  Using a Vector Autoregression (VAR) approach, several hypotheses are
 re-examined suggested by the literature concerning the relationship
 between financial development and economic growth, investment and
 productivity. The models use quarterly time-series data from ten OECD
 countries and China. Innovation accounting or variance decomposition and
 impulse response function analysis is applied to examine
 interrelationships between variables in the VAR system and, therefore,
 differs from the more usual Granger causality approach. In particular, it
 examines the relationship between financial development proxied by total
 credit. At best, weak support is found for the hypothesis that financial
 development 'leads' economic growth. 
Journal: Applied Economics 
Pages: 1353-1367 
Issue: 12 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118762 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1353-1367




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gil-Alana 
Author-Name: Pedro Mendi 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Mendi 
Title: Fractional integration in total factor productivity: evidence from US data 
Abstract:
  This study examines the stochastic properties of different measures of
 Total Factor Productivity (TFP) in the USA and their components using
 fractional integration. The results show that its structure is more
 complicated than expected, formed by the interaction of various seasonal
 and non-seasonal unit (or fractional) processes. Thus, output (measured in
 terms of the GDP or the business sector value added) may be modelled as a
 unit root; the order of integration of capital is much higher than 1 and
 it may be specified even as an I(2) process, while labour contains a
 seasonal unit root. However, in all these cases, fractional degrees of
 integration may be even better characterizations for these series. As a
 result, the TFP series appear to be seasonally fractionally integrated,
 with d constrained between 0.5 and 1. A deeper investigation of the orders
 of integration at each of the frequencies shows that the order of
 integration at zero plays a much more important role that the seasonal
 frequencies, a result that is explained by the different stochastic nature
 of the components underlying the TFP. 
Journal: Applied Economics 
Pages: 1369-1383 
Issue: 12 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118721 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118721 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1369-1383




Template-Type: ReDIF-Article 1.0
Author-Name: Knut Blind 
Author-X-Name-First: Knut 
Author-X-Name-Last: Blind 
Author-Name: Andre Jungmittag 
Author-X-Name-First: Andre 
Author-X-Name-Last: Jungmittag 
Title: Trade and the impact of innovations and standards: the case of Germany and the UK 
Abstract:
  The effects of patents as indicators for innovations and standards on
 German trade performance are analysed in general and German-British trade
 in detail. The latter analysis goes a step further than the approach of
 Swann et al. (1996) and is based on a broader and more detailed database.
 The results show that Germany's export performance can primarily be
 explained by its innovative capacity and only to a small extent by its
 strength in standards. Furthermore, the results underscore the common view
 of the trade-fostering effect of international standards, while
 'idiosyncratic' standards have ambiguous effects on exports. 
Journal: Applied Economics 
Pages: 1385-1398 
Issue: 12 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/13504850500143294 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/13504850500143294 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1385-1398




Template-Type: ReDIF-Article 1.0
Author-Name: Judy Shaw-Er 
Author-X-Name-First: Judy 
Author-X-Name-Last: Shaw-Er 
Author-Name: Wang Chiang 
Author-X-Name-First: Wang 
Author-X-Name-Last: Chiang 
Author-Name: Ya-Wen Chen 
Author-X-Name-First: Ya-Wen 
Author-X-Name-Last: Chen 
Title: Cost structure and technological change of local public transport: the Kaohsiung City Bus case 
Abstract:
  This study has developed a translog cost function for the Kaohsiung City
 Bus (KCB) to analyse its cost structure and economic characteristics,
 based on monthly data over the time period from January 1996 to December
 2000. The empirical results reveal that economies of density in the
 provision of bus services in Kaohsiung do prevail. The estimated marginal
 cost, which is less than the average cost but greater than the current bus
 fare, indicates that the subsidy is necessary. Due to the existence of
 returns to density (RTD), the KCB could obtain cost-saving benefits by
 extending its output scale. The KCB production technology is also not
 neutral. The effects of technological change on the KCB costs suggest that
 over the period 1996-2000 technological progress did lead to cost saving;
 the pure productivity growth rate increased from 0.45% in 1998 to 3% in
 2000. 
Journal: Applied Economics 
Pages: 1399-1410 
Issue: 12 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118465 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118465 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1399-1410




Template-Type: ReDIF-Article 1.0
Author-Name: Ya-Ming Liu 
Author-X-Name-First: Ya-Ming 
Author-X-Name-Last: Liu 
Author-Name: Jean Kinsey 
Author-X-Name-First: Jean 
Author-X-Name-Last: Kinsey 
Title: The effect of competition on the practice of outpatient services for diabetes patients at different levels of hospitals in Taiwan 
Abstract:
  This paper empirically analyses hospital non-price competition in a
 market characterized by a government accreditation system in Taiwan.
 Outpatient services for diabetes patients were used to measure the quality
 of patient care in outpatient departments in three types of hospitals. The
 hypothesis that an increase in the number of highest accredited hospitals
 - medical centres - would improve the quality of care in other types of
 hospitals is rejected. However, after carefully controlling endogeneity
 and measurement error of the hospital competition index by using
 instrumental variables, empirical findings based on the National Health
 Insurance Research Database from 1997 to 1999 show that different types of
 hospitals may respond to competitive pressure from the various levels of
 hospitals differently. Positive spillover effects were found from
 competition from regional and district hospitals. These findings may
 deserve serious consideration when forming policy to allocate medical
 resources to different levels of hospitals. 
Journal: Applied Economics 
Pages: 1411-1422 
Issue: 12 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1411-1422




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Ezcurra 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Ezcurra 
Author-Name: Carlos Gil 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Gil 
Author-Name: Pedro Pascual 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Pascual 
Title: Regional welfare disparities: the case of the European Union 
Abstract:
  The regional welfare distribution in the European Union between 1993 and
 1998 is examined, using several complementary methodologies. The results
 obtained show a reduction in regional welfare disparities over the period
 analysed. It is worth noting, in this respect, however, that regional
 productivity differences prove to be the main determinant behind observed
 welfare inequality in the European context. Moreover, there has also been
 a decline in regional bipolarization over the six-year contemplated, while
 the degree of observed intradistributional mobility is relatively low. The
 empirical evidence presented, nevertheless, reveals the importance of
 variables such as the national component, the spatial location, the
 regional productive structure or the percentage of GDP devoted to
 investment or to R&D expenditure, in accounting for the dynamics of the
 distribution under analysis. 
Journal: Applied Economics 
Pages: 1423-1437 
Issue: 12 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500142036 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500142036 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1423-1437




Template-Type: ReDIF-Article 1.0
Author-Name: James Ang 
Author-X-Name-First: James 
Author-X-Name-Last: Ang 
Author-Name: An-Sing Chen 
Author-X-Name-First: An-Sing 
Author-X-Name-Last: Chen 
Author-Name: James Wuh Lin 
Author-X-Name-First: James Wuh 
Author-X-Name-Last: Lin 
Title: Ascertaining the effects of employee bonus plans 
Abstract:
  The effect of employee bonus plans may be difficult to ascertain
 empirically if the size of bonus is not large enough in magnitude compared
 to base salary. This study makes use of data from Taiwan where employee
 bonus payments are not only mandated by law but are quite often several
 times a typical employee's annual base salary. The use of this unique data
 allows one to empirically observe interesting relationships difficult to
 ascertain from traditional datasets. Evidence is found that the
 performance of bonus-paying firms is related to the size of bonuses paid,
 both before and after analysis, and across industries. In general,
 evidence seems to indicate that bonus-paying firms tend to achieve higher
 productivity, better cost control and asset utilization, and share price
 returns. However, there may be evidence that marginal returns to employee
 bonuses are decreasing, reflecting the use of bonuses as substitutes for
 cash pay in order to attract employees in short supply. These results can
 serve as useful benchmarks for future studies. 
Journal: Applied Economics 
Pages: 1439-1448 
Issue: 12 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500092009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500092009 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1439-1448




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Strobel 
Author-X-Name-First: Frank 
Author-X-Name-Last: Strobel 
Title: Leaving EMU: a real options perspective 
Abstract:
  The real option implicit in a country's decision of whether to leave an
 existing monetary union when there is uncertainty over the future benefits
 of this move is examined. The theoretical model used is calibrated for the
 current Euro-12 area by proxying policymakers' inflation preferences with
 unemployment rates and debt-to-GDP ratios. A robust group of countries is
 observed that would choose to remain within EMU consisting of Belgium,
 Finland, Greece and Italy; France and Spain loosely also belong to this
 core. Only Luxembourg would robustly want to leave EMU; Ireland and The
 Netherlands, however, complement that core closely. 
Journal: Applied Economics 
Pages: 1449-1453 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500166308 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500166308 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1449-1453




Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Pons-i-Novell 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Pons-i-Novell 
Author-Name: Ramon Tremosa-i-Balcells 
Author-X-Name-First: Ramon 
Author-X-Name-Last: Tremosa-i-Balcells 
Title: Macroeconomic effects of Catalan fiscal deficit with the Spanish state (2002-2010) 
Abstract:
  According to Eurostat Regional data for the period 1996-1999 Catalan
 convergence with the EU's most dynamic regions has been blocked. In this
 paper, with the aim to analyse how Catalonia can converge with the EU in
 the forthcoming years, some simulations of Catalan GDP growth in the 2010
 horizon have been estimated, considering different reduction scenarios of
 Catalan fiscal deficit with the Spanish state (between 7-9% of Catalan
 yearly GDP). Looking at the results obtained, the current Catalan
 stagnation will persist for the next few years if the above-mentioned
 fiscal deficit does not change. Thus, Catalonia will only converge with
 most dynamic EU regions if there is a significant reduction of Catalan
 fiscal deficit with the Spanish state. 
Journal: Applied Economics 
Pages: 1455-1463 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109134 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109134 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1455-1463




Template-Type: ReDIF-Article 1.0
Author-Name: Sanjin Piragic 
Author-X-Name-First: Sanjin 
Author-X-Name-Last: Piragic 
Author-Name: Kenneth Jameson 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Jameson 
Title: The determinants of Latin American exchange rate regimes 
Abstract:
  The experience of the last thirty years suggests that a wide range of
 factors affects policymakers' choice of exchange rate regime. The initial
 explanation was that changes in the international sphere dominated
 domestic policies and strongly influenced how governments decided among
 the trade-offs. More recently, domestic political factors' influence on
 the choice of exchange rate regimes have been emphasized, providing
 detailed and rich insights into the dynamics of the choice. Neither
 approach has been entirely successful. Both internal and external factors
 must be taken into account. This article builds on previous empirical work
 and takes into account domestic and international influences on the choice
 of exchange rate regimes in Latin America between 1964 and 1996. In
 addition, we highlight a variety of 'interactions', choices of economic
 policy that are affected by both national and international pressures and
 that, in turn, influence the choice of exchange rate regime. The empirical
 model uses multinomial ordered logit analysis to determine the factors in
 exchange rate determination and to compare the explanatory of the models
 with and without the interaction variables. 
Journal: Applied Economics 
Pages: 1465-1474 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500193773 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193773 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1465-1474




Template-Type: ReDIF-Article 1.0
Author-Name: George Halkos 
Author-X-Name-First: George 
Author-X-Name-Last: Halkos 
Author-Name: Christos Kitsos 
Author-X-Name-First: Christos 
Author-X-Name-Last: Kitsos 
Title: Optimal pollution level: a theoretical identification 
Abstract:
  In this paper, the optimal pollution level is identified under the
 assumptions of linear, quadratic and exponential cost functions. The
 corresponding optimal level of environmental policy is evaluated, with
 analytical forms in the linear and quadratic case, while in the
 exponential case, these values are obtained approximately. It is shown
 that, in principle, its existence obeys certain restrictions, which are
 investigated here. The evaluation of the benefit area is discussed and
 analytical forms for this particular area are calculated. The positive
 point, at least from a theoretical point of view, is that both the
 quadratic and the exponential case obey the same form when evaluating the
 benefit area. These benefit area evaluations can be used as indexes
 between different rival policies, and certainly the policy that produces
 the maximum area is the most beneficial policy. 
Journal: Applied Economics 
Pages: 1475-1483 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500193625 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193625 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1475-1483




Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya 
Author-X-Name-First: Mita 
Author-X-Name-Last: Bhattacharya 
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Testing for the random walk hypothesis in the case of visitor arrivals: evidence from Indian tourism 
Abstract:
  Testing for the random walk hypothesis, which asserts that a series is a
 non-stationary process or a unit root process, in the case of visitor
 arrivals has important implications for policy. If, for instance, visitor
 arrivals are characterized by a unit root, then it implies that shocks to
 visitor arrivals are permanent. However, if visitor arrivals are without a
 unit root, this implies that shocks to visitor arrivals are temporary.
 This study provides evidence on the random walk hypothesis for visitor
 arrivals to India using the recently developed Im et al. (2003) and
 Maddala and Wu (1999) panel unit root tests. Both tests allow one to
 reject the random walk hypothesis, implying that shocks to visitor
 arrivals to India from the 10 major source markets have a temporary effect
 on visitor arrivals. 
Journal: Applied Economics 
Pages: 1485-1490 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500109332 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109332 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1485-1490




Template-Type: ReDIF-Article 1.0
Author-Name: Soo Khoon Goh 
Author-X-Name-First: Soo Khoon 
Author-X-Name-Last: Goh 
Title: New empirical evidence on the effects of capital controls on composition of capital flows in Malaysia 
Abstract:
  This study aims to examine the effect of capital controls on composition
 capital flows in Malaysia. Under predetermined exchange rate rules, the
 contribution of selective controls is to increase monetary autonomy,
 without taxing private long-term capital flow or foreign direct
 investment. Although the selective capital controls in Malaysia tax only
 some components of capital flows, the study shows, after controlling other
 factors, the controls not only reduce the total flows (hence increase
 monetary autonomy), but to some extent affected the private long-term
 flows. 
Journal: Applied Economics 
Pages: 1491-1503 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118952 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118952 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1491-1503




Template-Type: ReDIF-Article 1.0
Author-Name: Prodromos-Ioannis Prodromidis 
Author-X-Name-First: Prodromos-Ioannis 
Author-X-Name-Last: Prodromidis 
Title: Estimating women's time use: based on British survey evidence from 1986-1987 
Abstract:
  The paper considers the allocation of time among working-age women in
 Britain using time-budget data from 1986-1987. It finds that women
 generally allocate 69% of their time towards non-work, 21% to unpaid work,
 and 10% towards paid work (which is often censored). It also estimates the
 coefficients of the uncensored functions and compares the findings to the
 outcomes of the censored labour supply regression stemming from the
 Selection-Bias Correction (SBC) and Tobit procedures. 
Journal: Applied Economics 
Pages: 1505-1521 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500081754 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081754 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1505-1521




Template-Type: ReDIF-Article 1.0
Author-Name: Pi-Fem Hsu 
Author-X-Name-First: Pi-Fem 
Author-X-Name-Last: Hsu 
Title: Inter-industry wage premiums and industry-specific productivity in Taiwan 
Abstract:
  By using Taiwan's Manpower Utilization Survey data for the 1978-2000
 period, different inter-industry wage premiums in Taiwan are observed and
 the impact of workers' industry-specific productivity on the wage
 explored. The empirical results show that industry-specific skills result
 in industry stayers having higher wages than industry switchers through
 their reservation wages. It is also found that the pre-displacement
 industry affiliations that are associated with the post-displacement wages
 are explained by the workers' unobserved abilities. Furthermore, by
 comparing the different residual means between industry switchers and
 stayers based on each industry's wage equation, it is found that the
 switchers are low-wage workers who tend to be located in the high-wage
 industries. The high-wage industry leavers are also found to have higher
 post-displacement wage residuals than the low-wage industry leavers. These
 results suggest that the differences in industry wage premiums may be
 explained by the industry-specific productivity. 
Journal: Applied Economics 
Pages: 1523-1533 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118861 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118861 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1523-1533




Template-Type: ReDIF-Article 1.0
Author-Name: James Johnston 
Author-X-Name-First: James 
Author-X-Name-Last: Johnston 
Title: Reward design and CEO succession in the UK 
Abstract:
  Previous research has shown that top executives often rise to the peak of
 their organizations after a long-term employment relationship, and that
 internal promotion to the top is reflected in enhanced baseline salaries.
 Using data from a representative sample of UK companies, the links between
 the fixed and variable elements of the Chief Executive Officer's
 compensation package are examined and whether the appointment has been
 promoted internally or recruited from outside of the company. From this
 analysis, it is concluded that the positive impact on basic pay of
 elevation to the top job from within the company is not present in total
 compensation or the structure of pay. It also emerges that although tenure
 does not significantly impact on the structure of pay, it does alter total
 reward through its impact on the value of options granted: longer company
 tenure reduces both the award of share options and the total value of the
 remuneration package; job tenure, on the other hand, raises the
 executive's reward primarily through its positive impact on baseline
 salary. Though share ownership reduces the performance sensitivity of
 earnings, increases in baseline salary are reflected in greater exposure
 to the use of share options. 
Journal: Applied Economics 
Pages: 1535-1541 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500193914 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193914 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1535-1541




Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Hsien Liu 
Author-X-Name-First: Wen-Hsien 
Author-X-Name-Last: Liu 
Author-Name: Ya-Chi Lin 
Author-X-Name-First: Ya-Chi 
Author-X-Name-Last: Lin 
Title: Foreign patent rights and high-tech exports: evidence from Taiwan 
Abstract:
  This paper conducts a consecutive pooled data analysis from 1989 to 2000
 to investigate the relationship between foreign patent rights (FPRs) and
 the exports of three high-tech industries in Taiwan: the semiconductor,
 the information and the communication equipment industries. Following
 Smith's model setup, empirical results indicate that both market expansion
 and market power effects do exist in Taiwan's case. In addition, this
 paper proposes a new hypothesis in which the importing country may exhibit
 a stronger R&D ability than the exporting country, a case that has not
 been considered in earlier empirical work. Finally, a test is made to
 determine if a TRIPS (Trade-related Intellectual Property Rights)
 agreement has any impact on the FPRs-exports relationship, and no evidence
 is found of a structural change after the implementation of TRIPS. 
Journal: Applied Economics 
Pages: 1543-1555 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500173155 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500173155 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1543-1555




Template-Type: ReDIF-Article 1.0
Author-Name: Suheyla Ozyildirim 
Author-X-Name-First: Suheyla 
Author-X-Name-Last: Ozyildirim 
Author-Name: Bulent Yaman 
Author-X-Name-First: Bulent 
Author-X-Name-Last: Yaman 
Title: Optimal versus adequate level of international reserves: evidence for Turkey 
Abstract:
  The determination of international reserve balance for emerging economies
 is part of the efforts to strengthen the immunity of these economies to
 crises. However, there is still evidence on crises even for the countries
 with large foreign reserves. It has usually been experienced that the
 countries with greatest need for reserves economize more than others on
 their holdings since they might underestimate the cost of crisis. In this
 study, the official international reserves of Turkey are tested against
 optimality and adequacy. During 1988-2002, the actual reserves fell short
 of both the optimal and the adequate levels. They are only optimal when
 the expected cumulative contraction is about 5.2% of real GDP under
 crisis. However, early evidence from emerging economies and Turkey show
 that crises hit more heavily. Hence, it is found that the current
 financial structure in Turkey such as the absence of capital controls and
 a highly dollarized banking system necessitates more foreign reserves for
 preventing any future economic and/or financial shocks. 
Journal: Applied Economics 
Pages: 1557-1569 
Issue: 13 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500166373 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500166373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1557-1569




Template-Type: ReDIF-Article 1.0
Author-Name: Joan Costa-Font 
Author-X-Name-First: Joan 
Author-X-Name-Last: Costa-Font 
Author-Name: Joan Rovira 
Author-X-Name-First: Joan 
Author-X-Name-Last: Rovira 
Title: Eliciting preferences for collectively financed health programmes: the 'willingness to assign' approach 
Abstract:
  Improving public involvement in health system decision making stands as a
 primary health policy goal. However, still limited guidance is available
 on how best to elicit preferences for health care programmes. This study
 examines a contingent choice technique to elicit preferences among health
 programmes, and named 'willingness to assign' (WTAS). WTAS reveals
 relative (monetary-based) values of a set of competing public programmes
 under a hypothetical healthcare budget assessment. Experimental evidence
 is reported from a deliberative empirical study valuing ten health
 programmes in the context of the Catalan Health Service. Evidence from
 this experimental study reveals that within the context of multiple
 programmes, preferences are internally more consistent and slightly less
 affected by 'preference reversals' as compared to values revealed from an
 adapted technique eliciting the willingness to pay (WTP) extra taxes.
 Another finding suggests that although programmes promoting health
 received the higher relative valuation, those promoting other health
 benefits were valued highly. 
Journal: Applied Economics 
Pages: 1571-1583 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500181695 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500181695 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1571-1583




Template-Type: ReDIF-Article 1.0
Author-Name: Emanuele Bacchiocchi 
Author-X-Name-First: Emanuele 
Author-X-Name-Last: Bacchiocchi 
Author-Name: Massimo Florio 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Florio 
Author-Name: Mara Grasseni 
Author-X-Name-First: Mara 
Author-X-Name-Last: Grasseni 
Title: The missing shock: the macroeconomic impact of British Privatizations 
Abstract:
  In this paper the impact of privatization on macroeconomic performance in
 the United Kingdom is tested using quarterly data from 1979 to 1999.
 Privatization proceeds have been included in a simple analytical framework
 dealing with both demand and supply-side of the economy. Multivariate
 cointegration techniques have been used in order to consider the
 nonstationarity of the time series involved. The empirical results show
 that privatizations have no long-run effects on output in the UK. This
 result is consistent with microeconomic evidence that shows that in the UK
 ownership change per se had little impact on long term productivity
 trends. Moreover it is found that privatization proceeds have contributed
 to sustaining public expenditures. 
Journal: Applied Economics 
Pages: 1585-1596 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500215170 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215170 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1585-1596




Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Russo 
Author-X-Name-First: Giovanni 
Author-X-Name-Last: Russo 
Author-Name: Wolter Hassink 
Author-X-Name-First: Wolter 
Author-X-Name-Last: Hassink 
Author-Name: Cees Gorter 
Author-X-Name-First: Cees 
Author-X-Name-Last: Gorter 
Title: Filling vacancies: an empirical analysis of the cost and benefit of search in the labour market 
Abstract:
  This paper investigates empirically the factors that affect the
 cost-benefit ratio of employers' search. The empirical analysis is based
 on a small Dutch data set containing individual information on filled
 vacancies. It is found that firms that use advertisements during
 recruitment are sensitive to labour market conditions; their search cost
 per applicant rises (drops) in tight (slack) labour markets because of the
 diminished ability of advertisements to generate applicants in tight
 labour markets. Furthermore, it is found that the high search cost
 incurred by posting identical vacancies is more than compensated for by
 the benefits from having a larger flow of applicants. 
Journal: Applied Economics 
Pages: 1597-1606 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217069 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217069 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1597-1606




Template-Type: ReDIF-Article 1.0
Author-Name: Erdal Atukeren 
Author-X-Name-First: Erdal 
Author-X-Name-Last: Atukeren 
Title: Measuring the strength of cointegration and Granger-causality 
Abstract:
  This study uses Poskitt and Tremayne's (1987) posterior odds ratio test
 and the associated model portfolio approach to measure the strength of the
 evidence from cointegration and Granger-causality tests. As an
 illustration of the methodology, the bivariate relationship between money
 and income in Canada is re-examined using historical data. 
Journal: Applied Economics 
Pages: 1607-1614 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500214173 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214173 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1607-1614




Template-Type: ReDIF-Article 1.0
Author-Name: Mariarosaria Agostino 
Author-X-Name-First: Mariarosaria 
Author-X-Name-Last: Agostino 
Author-Name: Leone Leonida 
Author-X-Name-First: Leone 
Author-X-Name-Last: Leonida 
Author-Name: Francesco Trivieri 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Trivieri 
Title: Profits persistence and ownership: evidence from the Italian banking sector 
Abstract:
  The hypothesis that ownership structure affects persistence of profits in
 the Italian banking industry is tested. The time-invariant components of
 ROA and ROE are regressed against ownership concentration and the fraction
 of shares held by the major shareholders. The results show that abnormal
 profits increase if ownership is concentrated in foundations and banks,
 and decrease if market forces are allowed to operate. 
Journal: Applied Economics 
Pages: 1615-1621 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500214223 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214223 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1615-1621




Template-Type: ReDIF-Article 1.0
Author-Name: Chao-Liang Chen 
Author-X-Name-First: Chao-Liang 
Author-X-Name-Last: Chen 
Title: The funding for a Defined Benefit (DB) pension plan based on the fair valuation of the plan's insolvency risk 
Abstract:
  This study provides a contingent claims valuation approach model to value
 a sponsor's claim on a salary-related, defined benefit (DB) pension plan.
 The model is further developed to numerically estimate a suggested optimal
 contribution cost that allows the sponsor to fairly bear the risk of the
 plan's insolvency. The results demonstrate that the traditional actuarial
 valuation underestimates the cost of pension benefits, and that the normal
 contribution cost is not enough for the sponsor to fairly charge the value
 of bearing the plan's insolvency. 
Journal: Applied Economics 
Pages: 1623-1633 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500215279 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215279 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1623-1633




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Bates 
Author-X-Name-First: Samuel 
Author-X-Name-Last: Bates 
Title: Global measure of causal intensity between real and financial spheres 
Abstract:
  The lack of theoretical consensus on the causality direction between real
 and financial spheres as well as on the macroeconomic importance of
 transmission channels drive to an empirical approach of the links between
 the two areas. The aim of this paper is to offer a method for the analysis
 of the causal structure between the two spheres according to the
 transmission channels. It becomes possible globally on short and long runs
 for a given country to better surround mechanisms intervening inside the
 feedback between real and financial areas. 
Journal: Applied Economics 
Pages: 1635-1642 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500214306 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214306 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1635-1642




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Ouellette 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Ouellette 
Author-Name: Valerie Vierstraete 
Author-X-Name-First: Valerie 
Author-X-Name-Last: Vierstraete 
Title: An evaluation of the efficiency of Quebec's school boards using the Data Envelopment Analysis method 
Abstract:
  In this paper the efficiency of Quebec's school boards during a period of
 severe cutbacks in their finance is examined. Using Data Envelopment
 Analysis, the average efficiency is found to be relatively high. In spite
 of this, potential savings could be achieved if school boards were fully
 efficient. Results were found to depend heavily on school boards' socio-
 economic conditions, thus they were subjected to Tobit analysis and the
 boards' corrected efficiencies recalculated. It is concluded that
 inefficiencies cost 800 million dollars of which 200 million dollars come
 from unfavourable socio-economic conditions. 
Journal: Applied Economics 
Pages: 1643-1653 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500173247 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500173247 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1643-1653




Template-Type: ReDIF-Article 1.0
Author-Name: Rob Euwals 
Author-X-Name-First: Rob 
Author-X-Name-Last: Euwals 
Author-Name: Melanie Ward 
Author-X-Name-First: Melanie 
Author-X-Name-Last: Ward 
Title: What matters most: teaching or research? Empirical evidence on the remuneration of British academics 
Abstract:
  This paper examines the impact of productivity on pay within academia,
 drawing upon a detailed dataset of academics from five old established
 universities. Results outline the importance of publication; grant receipt
 and teaching quality in the determination of pay. A large financial
 penalty to time out of the profession is revealed, which, with
 productivity variables, explains away the gender salary gap. The
 relationship between teaching and research is investigated, and we find
 some evidence in support of the hypothesis that productive researchers are
 successful teachers. Results on reservation salary suggest that the best
 academics are willing to stay within the profession. 
Journal: Applied Economics 
Pages: 1655-1672 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500181620 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500181620 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1655-1672




Template-Type: ReDIF-Article 1.0
Author-Name: Pablo de Andres-Alonso 
Author-X-Name-First: Pablo 
Author-X-Name-Last: de Andres-Alonso 
Author-Name: Valentin Azofra-Palenzuela 
Author-X-Name-First: Valentin 
Author-X-Name-Last: Azofra-Palenzuela 
Author-Name: Gabriel de la Fuente-Herrero 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: de la Fuente-Herrero 
Title: Real options as a component of the market value of stocks: evidence from the Spanish Stock Market 
Abstract:
  This paper aims to examine how investors' expectations about the value of
 a firm's real options are reflected in the price of its stocks. If the
 real-option approach is correct, then the efficient-market hypothesis
 predicts that stock prices will reflect the available information relative
 to the real options held by firms and their ability to identify, acquire,
 maintain and exercise them. The role of investment irreversibility,
 operating and financial flexibility, business and geographical
 diversification, and size are examined as indicators of a firm's real
 option strategy. The empirical analysis of a panel of 101 companies listed
 on the Spanish Stock Exchange during the period 1991-1997 provides
 evidence consistent with predictions. The market value of the real option
 portfolio is significantly and positively related to business
 diversification, asset irreversibility and operating leverage, and
 negatively related to size. In addition, financial leverage and
 geographical diversification are not significantly related to our proxies
 for the market value of real options. These results are robust even after
 controlling for industry, and alternative measures of investment
 flexibility and business diversification. 
Journal: Applied Economics 
Pages: 1673-1691 
Issue: 14 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500181778 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500181778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1673-1691




Template-Type: ReDIF-Article 1.0
Author-Name: Damiano Kulundu Manda 
Author-X-Name-First: Damiano Kulundu 
Author-X-Name-Last: Manda 
Author-Name: Arne Bigsten 
Author-X-Name-First: Arne 
Author-X-Name-Last: Bigsten 
Author-Name: Germano Mwabu 
Author-X-Name-First: Germano 
Author-X-Name-Last: Mwabu 
Title: Trade union membership and earnings in Kenyan manufacturing firms 
Abstract:
  This study analyses the effect of trade unions on male earnings in the
 Kenyan manufacturing sector using a regression method, which takes into
 account endogeneity of the union status of workers. In contrast to earlier
 studies of the Kenyan labour market that report a negative effect of
 unions on wages, a positive effect is found. The study further shows that
 elite workers tend to abstain from union membership. 
Journal: Applied Economics 
Pages: 1693-1704 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118903 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1693-1704




Template-Type: ReDIF-Article 1.0
Author-Name: Luca Pieroni 
Author-X-Name-First: Luca 
Author-X-Name-Last: Pieroni 
Author-Name: Matteo Ricciarelli 
Author-X-Name-First: Matteo 
Author-X-Name-Last: Ricciarelli 
Title: Testing rational expectations in primary commodity markets 
Abstract:
  The standard method used to test the rational expectations hypothesis
 (REH) in primary commodity markets is by means of a structural approach.
 In this paper, a parsimonious vector error correction model in the price
 and stock equation is derived that maintains almost complete information
 of the underlying structural model. The empirical section utilizes
 1955-2000 US copper data to investigate the properties of the model
 extended to the macroeconomic variables. The estimation results are
 statistically robust and are in keeping with economic theory. Three
 different results are found: (i) price adjustments depend on the short-run
 dynamic of the stock equation, whereas the long-run dynamic is
 statistically rejected; (ii) the over-identification restrictions,
 including the test for the REH, are not rejected; (iii) the forecast
 simulations on price are well performed. 
Journal: Applied Economics 
Pages: 1705-1718 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500173205 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500173205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1705-1718




Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Menkhoff 
Author-X-Name-First: Lukas 
Author-X-Name-Last: Menkhoff 
Author-Name: Ulrich Schmidt 
Author-X-Name-First: Ulrich 
Author-X-Name-Last: Schmidt 
Title: The use of trading strategies by fund managers: some first survey evidence 
Abstract:
  A questionnaire survey has found that most fund managers rely on the
 strategies of buy-&-hold, momentum and contrarian trading. These
 strategies are typically applied mutually. Their use is rooted in the
 attributes and beliefs of the respective fund managers: buy-&-hold traders
 are fundamentally oriented, risk averse and are less (over)confident than
 others. Momentum traders appear as the least risk-averse professionals,
 going aggressively with the trend. Contrarian traders, however, show signs
 of overconfidence and peculiar risk aversion, both indicating difficulties
 in successful strategy implementation. The behavioural patterns revealed
 are not easily reconciled with efficient markets. 
Journal: Applied Economics 
Pages: 1719-1730 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217606 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217606 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1719-1730




Template-Type: ReDIF-Article 1.0
Author-Name: R. Scott Hacker 
Author-X-Name-First: R. Scott 
Author-X-Name-Last: Hacker 
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Title: The effect of regime shifts on the long-run relationships for Swedish money demand 
Abstract:
  When the possibility of an unknown structural break is allowed and it is
 taken into account we find a significant long-run relationship between
 Swedish money demand and its determinants that is not found when no break
 is considered. The estimated elasticities show that money demand is more
 responsive to its determinants in the period after the break than before.
 Possible underlying reasons for the occurrence of this break and its
 implications are explained. 
Journal: Applied Economics 
Pages: 1731-1736 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500215444 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1731-1736




Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Bezemer 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Bezemer 
Author-Name: Kelvin Balcombe 
Author-X-Name-First: Kelvin 
Author-X-Name-Last: Balcombe 
Author-Name: Junior Davis 
Author-X-Name-First: Junior 
Author-X-Name-Last: Davis 
Author-Name: Iain Fraser 
Author-X-Name-First: Iain 
Author-X-Name-Last: Fraser 
Title: Livelihoods and farm efficiency in rural Georgia  
Abstract:
  This study contributes to the literature on the role of livelihood
 strategies in rural growth and poverty reduction. It distinguishes between
 livelihood diversity strategies that contribute to sustainable growth in
 household incomes, and those that mainly have a 'coping' function. It
 suggests that typically, the contribution of livelihood diversity to
 growing household income is through relaxing dependence on credit for
 access to capital. In this scenario, livelihood diversity would lead to
 higher technical efficiency in agriculture via investment and thereby to
 higher household incomes. Survey data from Georgia are introduced and used
 to test these hypotheses using a Bayesian stochastic frontier approach.
 The findings are relevant to defining more clearly the scope and aims of
 policies to stimulate the rural non-farm economy in developing and
 transition countries. 
Journal: Applied Economics 
Pages: 1737-1745 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500215253 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215253 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1737-1745




Template-Type: ReDIF-Article 1.0
Author-Name: Ebru Guven Solakoglu 
Author-X-Name-First: Ebru Guven 
Author-X-Name-Last: Solakoglu 
Author-Name: Barry Goodwin 
Author-X-Name-First: Barry 
Author-X-Name-Last: Goodwin 
Title: The effects of railroad development on price convergence among the states of the USA from 1866 to 1906 
Abstract:
  This study examines the effects of the reduced transaction costs on the
 price behaviours in the second half of the nineteenth century, where
 declines in transaction costs were mainly caused by railroad development
 during this period. It employs a panel test introduced by Levin and Lin
 (1992) on the convergence of wheat and corn prices using a panel of 48 US
 states from 1866 to 1906. The results show that, by decreasing
 transportation costs, railroads played an important role in price
 convergence among states of the USA for wheat and corn during the
 postbellum period. 
Journal: Applied Economics 
Pages: 1747-1761 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/0003684052000344849 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684052000344849 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1747-1761




Template-Type: ReDIF-Article 1.0
Author-Name: Stanley Kardasz 
Author-X-Name-First: Stanley 
Author-X-Name-Last: Kardasz 
Author-Name: Kenneth Stollery 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Stollery 
Title: Exchange rate pass-through in Canadian manufacturing: its direct and indirect components 
Abstract:
  Changes in the exchange rate have direct and indirect effects on the
 prices of domestically produced goods and imports in the domestic market.
 The direct effects originate with the impact of the exchange rate on the
 marginal cost of imports; the indirect effects, with its impact on the
 price of materials used by domestic producers and hence on their marginal
 costs. Direct and indirect exchange rate pass-through elasticities are
 estimated for 37 Canadian manufacturing industries and their determinants
 are examined in a cross-section analysis. It is found that the direct and
 indirect elasticities are approximately equal in size for domestic goods,
 while the direct effect is dominant for imports. For a small number of
 industries, the net result of the direct and indirect effects is that a
 depreciation of the domestic currency increases the competitiveness of
 imports, contrary to conventional analysis. Important determinants of the
 direct (indirect) elasticities are the import share and non-tariff
 barriers (the responsiveness of domestic costs to changes in the exchange
 rate, and concentration). 
Journal: Applied Economics 
Pages: 1763-1776 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500215683 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215683 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1763-1776




Template-Type: ReDIF-Article 1.0
Author-Name: Athanasia Mavrommati 
Author-X-Name-First: Athanasia 
Author-X-Name-Last: Mavrommati 
Author-Name: Athanasios Papadopoulos 
Author-X-Name-First: Athanasios 
Author-X-Name-Last: Papadopoulos 
Title: Measuring advertising intensity and intangible capital in the Greek food industry 
Abstract:
  The objective of the present paper is to examine market conduct and its
 determinants in the Greek food industry and to measure how and to what
 degree the industry and the firm's structural characteristics affect
 advertising intensity. An advertising intensity model giving emphasis to
 intangible capital is formulated. Data from ICAP have been used on a
 four-digit classification for the food industry during the 1990-1997
 period. The empirical results indicate that intangible capital positively
 affects the advertising intensity of the firm and plays an important role
 in strategies that affect total cost, demand and structure of the market. 
Journal: Applied Economics 
Pages: 1777-1787 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217267 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217267 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1777-1787




Template-Type: ReDIF-Article 1.0
Author-Name: Huilin Lin 
Author-X-Name-First: Huilin 
Author-X-Name-Last: Lin 
Author-Name: Ryh-Song Yeh 
Author-X-Name-First: Ryh-Song 
Author-X-Name-Last: Yeh 
Title: The interdependence between FDI and R&D: an application of an endogenous switching model to Taiwan's electronics industry 
Abstract:
  Foreign direct investment (FDI) and research & development (R&D) are
 mutually dependent and should be treated as endogenous variables in
 empirical studies. An endogenous switching regression model is used to
 examine the mutual effect of FDI and R&D in Taiwan's electronics industry.
 The empirical results show that FDI and R&D are positively related and do
 reinforce each other. Unbiased coefficients are obtained as they are
 compared to those estimates if FDI and R&D are treated as exogenous
 variables. The results have a strong public policy implication for
 Taiwan's foreign direct investment and can be further used to estimate the
 difference in R&D expenditures between FDI and non-FDI firms. 
Journal: Applied Economics 
Pages: 1789-1799 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217093 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1789-1799




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Browne 
Author-X-Name-First: Frank 
Author-X-Name-Last: Browne 
Author-Name: David Doran 
Author-X-Name-First: David 
Author-X-Name-Last: Doran 
Title: Do equity index industry groups improve forecasts of inflation and production? A US analysis  
Abstract:
  This study develops a new financial market indicator, which may be a
 useful addition to analysing real activity in the US. By taking the ratio
 of the price return of equity industry groups of the S&P 500 over a
 benchmark industry group, in this case taken to be the Utilities industry
 group, an indicator is created which represents the price return
 performance specific to each individual industry. We then perform
 recursive pseudo out-of-sample bivariate forecasts of future changes in
 the Industrial Production Index (IPI) and the Consumer Price Index (CPI)
 at 3-month, 6-month and 12-month horizons using each of the indicators and
 compare results against an AR forecast. The results of the bivariate
 forecasts using a number of the indicators produce better forecasts of
 changes in the IPI and are also significant for causality, both for the
 full sample period and when tested recursively. Bivariate forecasts of
 changes to the CPI, however, do not improve upon the AR forecasts. 
Journal: Applied Economics 
Pages: 1801-1812 
Issue: 15 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500215394 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215394 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1801-1812




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Paul Chavas 
Author-X-Name-First: Jean-Paul 
Author-X-Name-Last: Chavas 
Author-Name: Kwansoo Kim 
Author-X-Name-First: Kwansoo 
Author-X-Name-Last: Kim 
Title: Cointegration relationships and hedonic pricing of differentiated commodities: an application to price dynamics in the US dairy sector 
Abstract:
  This study investigates the implications of hedonic pricing for price
 dynamics of differentiated commodities. A conceptual model of hedonic
 pricing is developed under a Leontief technology, showing how commodity
 prices reflect the underlying value of their components. Implications for
 the existence of cointegration relationships among commodity prices are
 derived. An application to the pricing and dynamics of selected US dairy
 commodities is presented. It provides evidence on the role of component
 valuation in the dynamics of dairy commodity prices in the short run as
 well as in the long run. Distinguishing between market regime and
 government regime (when the government price support is active), the
 analysis finds significant differences in dairy price dynamics between the
 two regimes. 
Journal: Applied Economics 
Pages: 1813-1827 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500215311 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215311 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1813-1827




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Arango 
Author-X-Name-First: Luis 
Author-X-Name-Last: Arango 
Author-Name: Carlos Posada 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Posada 
Title: Labour participation in Colombia 
Abstract:
  A model is estimated for the decision of participating in the labour
 market for different groups of household members: not coupled (single,
 divorced and widow) women and men and coupled (married and in permanent
 union) women and men. The differences among these groups are significant.
 Probit models are estimated for the period 1984 : 1-2000 : 4 using the
 National Housing Survey. The neoclassical static model performs fairly
 well in describing the empirical determinants of the decision of
 participating. In terms of sign and significance of estimated coefficients
 the best performance of the model is reached for women. In terms of
 prediction the model proves useful for not coupled persons. Except for the
 variable named 'children aged less than six years', all variables perform
 well. 
Journal: Applied Economics 
Pages: 1829-1838 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118994 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118994 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1829-1838




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Yen 
Author-X-Name-First: Steven 
Author-X-Name-Last: Yen 
Title: Zero observations and gender differences in cigarette consumption 
Abstract:
  Censoring mechanisms and gender differences are investigated for
 cigarette consumption by individuals in the USA. The Gaussian
 single-hurdle model is proposed which generalizes the specifications of
 Cragg (1971) and Heckman (1979) and allows examination of the empirical
 relevance of the two censoring mechanisms in the existing double-hurdle
 model. The proposed model performs better than Cragg's and Heckman's
 models but not as well as the double-hurdle model and also produces
 different elasticity estimates. The hypothesis of equal consumption
 parameters is rejected and demand elasticities found to differ between men
 and women. Income does not play a role and age has conflicting effects on
 the probability and level of cigarette smoking. Older individuals are less
 likely to smoke but, conditional on smoking, consume more cigarettes than
 their younger counterparts. Education has negative effects on the
 probability and level of smoking and can be an effective tool to curtail
 cigarette smoking. 
Journal: Applied Economics 
Pages: 1839-1849 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500214322 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214322 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1839-1849




Template-Type: ReDIF-Article 1.0
Author-Name: Rajesh Mehta 
Author-X-Name-First: Rajesh 
Author-X-Name-Last: Mehta 
Author-Name: Ashok Parikh 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Parikh 
Title: Impact of trade liberalization on import demands in India: a panel data analysis for commodity groups 
Abstract:
  The objectives of this study are to examine the impact of liberalization
 on price elasticities of imports at a commodity level for broad commodity
 groups and at an aggregate level for the Indian economy over the period
 1993-1997. Liberalization is implemented by reducing tariff and non-tariff
 barriers and relaxing exchange controls. The impact of tariffs and market
 based exchange rate is introduced in the import price of the commodity.
 Relative price (import/domestic) elasticities for each commodity group
 using panel data of six countries over five years are estimated. For the
 Indian economy, relative price elasticities for each of the years at an
 aggregate level using data for twenty commodity groups as observations are
 obtained and these show that the price elasticity tends to rise with the
 increase in liberalization when tariff rates are reduced. 
Journal: Applied Economics 
Pages: 1851-1863 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217945 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217945 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1851-1863




Template-Type: ReDIF-Article 1.0
Author-Name: Vasilios Patsouratis 
Author-X-Name-First: Vasilios 
Author-X-Name-Last: Patsouratis 
Author-Name: Zoe Frangouli 
Author-X-Name-First: Zoe 
Author-X-Name-Last: Frangouli 
Author-Name: George Anastasopoulos 
Author-X-Name-First: George 
Author-X-Name-Last: Anastasopoulos 
Title: Competition in tourism among the Mediterranean countries 
Abstract:
  This paper examines tourism competition among the Mediterranean countries
 with particular emphasis on Greece. The estimated model includes as
 explanatory variables an income index, a price index of the host country,
 a price index of the competitors (Spain, Portugal and Italy) and exchange
 rate. The results show that the main determinants of Greece's tourism
 demand are both price indexes and exchange rate. They also show that Spain
 seems to be Greece's main competitor. 
Journal: Applied Economics 
Pages: 1865-1870 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217226 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217226 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1865-1870




Template-Type: ReDIF-Article 1.0
Author-Name: Ofer Azar 
Author-X-Name-First: Ofer 
Author-X-Name-Last: Azar 
Title: Who do we tip and why? An empirical investigation 
Abstract:
  An important question about social norms is whether they are created to
 increase welfare. This is addressed by examining the characteristics of
 tipped and non-tipped occupations. Tipping prevalence is negatively
 correlated with worker's income and consumer's monitoring ability and
 positively with consumer's income and closeness between the worker and the
 consumer. The results refute a common belief that tipping exists to
 improve economic efficiency by lowering monitoring costs. Tipping,
 however, is more prevalent when consumers feel empathy and compassion for
 workers and want to show gratitude for good service, suggesting that
 tipping might increase welfare if welfare includes psychological utility. 
Journal: Applied Economics 
Pages: 1871-1879 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500119018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500119018 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1871-1879




Template-Type: ReDIF-Article 1.0
Author-Name: Sohrab Abizadeh 
Author-X-Name-First: Sohrab 
Author-X-Name-Last: Abizadeh 
Title: An analysis of government expenditure and trade liberalization 
Abstract:
  The effect of trade liberalization on government's role in the economy is
 investigated. It is shown that, contrary to received expectations, as
 small open economies liberalize their trade, the size of government
 decreases. 
Journal: Applied Economics 
Pages: 1881-1884 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500173049 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500173049 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1881-1884




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Peraita 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Peraita 
Title: Firm-sponsored training in regulated labour markets: evidence from Spain 
Abstract:
  Using data from the 1994 European Community Household Panel Survey, the
 author examines who receives formal firm-sponsored training in Spain. The
 author finds that the distribution of firm-sponsored training in the work
 force is uneven and concentrated among more skilled workers in the upper
 deciles of the wage distribution. The data show that the likelihood of
 receiving firm-sponsored training for a low education employee is much
 lower. Also, the better-educated employees in high wage occupations of the
 largest establishments have higher probabilities of receiving specific
 training. Spain has a highly regulated labour market, and the labour
 market frictions and institutions compress and distort the structure of
 wages. However, the results suggest that the highly compressed wage
 structure do not provide firms with the incentive to invest in general
 training. 
Journal: Applied Economics 
Pages: 1885-1898 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500194102 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500194102 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1885-1898




Template-Type: ReDIF-Article 1.0
Author-Name: Asli Gunay 
Author-X-Name-First: Asli 
Author-X-Name-Last: Gunay 
Author-Name: Kivilcim Metin-Ozcan 
Author-X-Name-First: Kivilcim 
Author-X-Name-Last: Metin-Ozcan 
Author-Name: Erinc Yeldan 
Author-X-Name-First: Erinc 
Author-X-Name-Last: Yeldan 
Title: Real wages, profit margins and inflation in Turkish manufacturing under post-liberalization 
Abstract:
  This article reports investigations into the behaviour of gross profit
 margins (mark-ups) in Turkish manufacturing industries for the post-1980
 liberalization period in relation to price inflation, trade liberalization
 (openness) and real wage costs. Panel data econometrics over 29 subsectors
 of Turkish manufacturing are used over the period 1980-1996. Results
 suggest that profit margins are positively and significantly related both
 to price inflation and real wage costs. However, openness is found to have
 very little impact on profit margins. 
Journal: Applied Economics 
Pages: 1899-1905 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217903 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1899-1905




Template-Type: ReDIF-Article 1.0
Author-Name: Panagiotis Mantalos 
Author-X-Name-First: Panagiotis 
Author-X-Name-Last: Mantalos 
Author-Name: Ghazi Shukur 
Author-X-Name-First: Ghazi 
Author-X-Name-Last: Shukur 
Title: The effect of the GARCH(1, 1) on autocorrelation tests in dynamic systems of equations 
Abstract:
  Using Monte Carlo methods, the properties of systemwise generalizations
 of the Breusch-Godfrey test for autocorrelated errors are studied when
 there are some kinds of GARCH effects among the errors. The analysis,
 regarding the size of the test, reveals that the GARCH have considerable
 effects of the properties of the test regarding the size, especially in
 large systems of equations. The corrected LR tests, however, have been
 shown to perform satisfactorily in small systems when the errors are white
 noise or they have low GARCH effects, whilst the commonly used TR2 test
 behaves badly even in single equations. All tests perform badly, however,
 when the number of equations increases and the GARCH effect is strong. As
 regards the power of the test, the GARCH was not found to have any
 significant effects on the power properties of the test. 
Journal: Applied Economics 
Pages: 1907-1913 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500118804 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1907-1913




Template-Type: ReDIF-Article 1.0
Author-Name: Ken Johnston 
Author-X-Name-First: Ken 
Author-X-Name-Last: Johnston 
Author-Name: David Carter 
Author-X-Name-First: David 
Author-X-Name-Last: Carter 
Author-Name: John Hatem 
Author-X-Name-First: John 
Author-X-Name-Last: Hatem 
Title: Exchange rates, and fundamental variables: a semi-parametric analysis of binary choice 
Abstract:
  This study is motivated by the dearth of models that provide good
 out-of-sample fit for exchange rates. That is, current models of exchange
 rate behaviour are poor predictors of subsequent currency movements. An
 attempt is made to determine if the relationship between exchange rates
 and fundamental variables can help explain the more extreme exchange rate
 movements (distributional switches). Models are developed that relate
 fundamental economic variables to the resulting estimates based on the
 mixture of normal probability distributions. Parametric estimation
 procedures (Logit and Probit) are compared with a semi-parametric
 technique, maximum score estimation (MSCORE), which is relatively untested
 in the field of finance. The fundamental variables of these models include
 information on trade balances, money supply changes, interest rate
 changes, real economic growth, relative inflation rates and changes in
 stock market indexes. Classification results favour MSCORE. Implications
 of results and improvements in methodology are discussed. 
Journal: Applied Economics 
Pages: 1915-1924 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217077 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217077 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1915-1924




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Gallegati 
Author-X-Name-First: Marco 
Author-X-Name-Last: Gallegati 
Title: Financial constraints and the balance sheet channel: a re-interpretation 
Abstract:
  Aggregate demand models extending IS/LM fixed price framework yield an
 enhancement mechanism of the traditional monetary transmission mechanism,
 the credit channel, which, according to the credit view, works through the
 'balance sheet channel' and the 'bank lending channel'. In this paper the
 augmented IS/LM model is modified assuming that investments may be
 financed by both internal and external sources of funds. The inclusion of
 internal funds in the augmented IS/LM fixed price model suggests a
 different interpretation of the 'balance sheet channel' as an enhancement
 mechanism amplifying monetary policy effects through the quantity rather
 than the cost of borrowing. Thus, changes in borrowers' net worth over the
 cycle can amplify and propagate output fluctuations directly rather than
 indirectly as in the traditional interpretation of the balance sheet
 channel. The empirical analysis of the monetary transmission mechanism for
 Italy in the last decade accords with the interpretation of the balance
 sheet channel proposed in this paper. 
Journal: Applied Economics 
Pages: 1925-1933 
Issue: 16 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500214256 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214256 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1925-1933




Template-Type: ReDIF-Article 1.0
Author-Name: Ross Finnie 
Author-X-Name-First: Ross 
Author-X-Name-Last: Finnie 
Author-Name: Ronald Meng 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Meng 
Title: Literacy and labour market outcomes: self-assessment versus test score measures 
Abstract:
  This paper looks at the determinants of literacy and the relation between
 literacy and labour market outcomes while focusing on comparisons of
 self-assessment versus test score measures of literacy. The test score
 measure performs considerably better than the self-assessments when
 literacy is treated as an outcome variable in terms of the overall fit of
 the model and the specific coefficient estimates, with the
 self-assessments sometimes actually generating wrongly signed parameters.
 The test score measure also performs much better as an explanatory
 variable in the employment models, with the self-assessment variable
 generating significant underestimates of the effects of literacy on the
 probability of being employed. Finally, the test score is also superior in
 the income models, although the self-assessment measure is at least a
 reasonably good performer in this regard, suggesting that the main results
 reported in much of the existing literature (based on such measures)
 should perhaps be taken as good representations of the true underlying
 relationships. 
Journal: Applied Economics 
Pages: 1935-1951 
Issue: 17 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500244519 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500244519 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1935-1951




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Cresti 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Cresti 
Title: US domestic barter: an empirical investigation 
Abstract:
  This paper studies the barter industry developed in North America during
 the 1950s, pointing out some of its main characteristics. Thus, it
 examines its two main sectors: (i) corporate barter and (ii) commercial
 barter. Contrary to expectations, the analysis of official data shows that
 this phenomenon is essentially pro-cyclical for the commercial barter
 component. Moreover, commercial barter activity turns out to be
 complementary to the cash economy. While the two sectors display some
 differences in their pattern, they both help firms to increase their
 profits. 
Journal: Applied Economics 
Pages: 1953-1966 
Issue: 17 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500193559 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193559 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1953-1966




Template-Type: ReDIF-Article 1.0
Author-Name: Henry Kinnucan 
Author-X-Name-First: Henry 
Author-X-Name-Last: Kinnucan 
Author-Name: &#xd8;ystein Myrland 
Author-X-Name-First: &#xd8;ystein 
Author-X-Name-Last: Myrland 
Title: Effects of income growth and tariffs on the world salmon market 
Abstract:
  The effects of income growth and tariffs on salmon prices, production,
 and trade flows are analysed using total elasticities derived from an
 equilibrium displacement model of the world salmon market. Results suggest
 the total income elasticity in world trade for salmon is about one, which
 means imports worldwide will grow at about the same pace as world income.
 However, owing in part to policies that restrict supply response, not all
 exporters will share evenly in this growth, with UK producers benefiting
 the most and Norwegian producers the least. Within importing countries,
 imports are more responsive to income growth than is domestic production,
 which means protectionist pressures are apt to increase with affluence. US
 tariffs on imports from Norway and Chile are counterproductive in that
 they reduce world imports with little effect on the US price. Norway's
 feed quota reduces the efficacy of US tariffs, makes imports less
 responsive to income, and increases price volatility. Hence, quota
 elimination may yield producer benefits in excess of producer losses
 associated with a lower world price. 
Journal: Applied Economics 
Pages: 1967-1978 
Issue: 17 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217523 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217523 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1967-1978




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: The saving and investment nexus for China: evidence from cointegration tests 
Abstract:
  The saving and investment nexus as postulated by Feldstein and Horioka
 (FH) (1980) is revisited. The saving investment correlation for China is
 estimated over the periods 1952-1998 and 1952-1994, the latter culminating
 in a period of fixed exchange rate regime. Amongst the key results, it is
 found that saving and investment are correlated for China for both the
 period of the fixed exchange rate and the entire sample period. With high
 saving-investment correlation, the results suggest that the Chinese
 economy is in conformity with the FH hypothesis. This is a valid outcome,
 for in China capital mobility was fairly restricted over the 1952-1994
 period as indicated by the relatively low foreign direct investment. 
Journal: Applied Economics 
Pages: 1979-1990 
Issue: 17 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500278103 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500278103 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1979-1990




Template-Type: ReDIF-Article 1.0
Author-Name: Sharanjit Uppal 
Author-X-Name-First: Sharanjit 
Author-X-Name-Last: Uppal 
Title: Demand for home modifications/specialized features: the case of disabled 
Abstract:
  Existing research dealing with the presence of modifications in the homes
 of individuals with disabilities in Canada has found severity of
 disability to be negatively related to the demand for modifications, a
 result that appears to be counterintuitive. In this paper, a model is
 estimated using data from the 1991 Health and Activity Limitation Survey
 conducted by Statistics Canada. The results show that severity of
 disability has a strong positive effect on the demand for
 modifications/specialized features both inside a residence and those used
 to access a residence. 
Journal: Applied Economics 
Pages: 1991-1999 
Issue: 17 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500244394 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500244394 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1991-1999




Template-Type: ReDIF-Article 1.0
Author-Name: Toni Mora 
Author-X-Name-First: Toni 
Author-X-Name-Last: Mora 
Author-Name: Jordi Lopez-Tamayo 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Lopez-Tamayo 
Author-Name: Jordi Surinach 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Surinach 
Title: Are wages and productivity converging simultaneously in Euro-area countries? 
Abstract:
  A convergence analysis is applied to wages and productivity for Euro-area
 countries in the period from 1981 to 2001. The results show a reduction in
 the dispersion of wages and unit labour costs, but not in productivity.
 Different patterns are found for real and nominal wages: higher levels of
 inflation in countries with higher growth rates of unit labour costs have
 caused nominal wages to move towards equalization. Moreover, disparities
 in all the variables have remained more or less the same since 1997,
 suggesting that the establishment of a single currency area has not
 accelerated the process of wage equalization. 
Journal: Applied Economics 
Pages: 2001-2008 
Issue: 17 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217655 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217655 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:2001-2008




Template-Type: ReDIF-Article 1.0
Author-Name: D. E. Allen 
Author-X-Name-First: D. E. 
Author-X-Name-Last: Allen 
Author-Name: H. M. Salim 
Author-X-Name-First: H. M. 
Author-X-Name-Last: Salim 
Title: Forecasting profitability and earnings: a study of the UK market (1982-2000) 
Abstract:
  An approach recently developed by Fama and French (2000) is applied to
 the study of whether UK company profitability is mean-reverting. A sample
 of roughly 987 firms per year for a period from 1982-2000 is used, drawn
 from Datastream. In a simple partial adjustment model convergence towards
 the mean at a rate of about 25% per year is found. The results are very
 similar in direction to those of Fama and French (2000) but the results do
 not display significant non-linearities. The change in profitability
 appears to be more strongly influenced by dividends in the UK. 
Journal: Applied Economics 
Pages: 2009-2018 
Issue: 17 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500244634 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500244634 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:2009-2018




Template-Type: ReDIF-Article 1.0
Author-Name: Lars Lindholt 
Author-X-Name-First: Lars 
Author-X-Name-Last: Lindholt 
Title: Beyond Kyoto: backstop technologies and endogenous prices on CO2 permits and fossil fuels 
Abstract:
  This paper analyses the markets for fossil fuels given that the limits
 the Kyoto Protocol sets on CO2 emissions from Annex B countries extend
 beyond 2008-2012. A forward-looking model with endogenous prices for
 fossil fuels is applied under different assumptions concerning the
 technological progress for a carbon-free backstop technology. Both the
 time-profile of the international permit price needed for the Kyoto
 Forever targets as well as the implications through reduced demand and
 lower producer prices for fossil fuels are calculated. The permit price
 has to rise at least up to 2030 in order to fulfil the emission targets.
 From then on the necessary permit price shows different future
 developments, dependent on when the backstop technology starts to replace
 oil. Since changes in the availability of the backstop technology shift
 the time-profile of the permit price, the loss of petroleum wealth for oil
 and gas producers varies between the scenarios, but is never more than
 20%. Findings indicate that the reduction in gas revenues in OECD-Europe
 after the introduction of the targets amounts to a yearly loss of
 0.01-0.02% of their total GNP for half a century. The reduction in oil
 revenues for OPEC is comparable to an annual loss of 2.9-5.4% of their GNP
 over a period of sixty years. 
Journal: Applied Economics 
Pages: 2019-2036 
Issue: 17 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:2019-2036




Template-Type: ReDIF-Article 1.0
Author-Name: Tastan Huseyin 
Author-X-Name-First: Tastan 
Author-X-Name-Last: Huseyin 
Title: Do real exchange rates contain a unit root? Evidence from Turkish data 
Abstract:
  This study explores whether the long-run purchasing power parity (PPP)
 hypothesis holds for selected real exchange rates from Turkish economy
 during the period 1982M1-2003M12. In addition to conventional unit root
 tests, five different unit root test procedures have been applied
 including efficient point-optimal tests, extended M tests and
 GLS-detrended variants of DF tests, to four monthly real exchange rate
 series defined in terms of both producer and consumer price indices. The
 countries analysed are the USA, the UK, Germany and Italy which are major
 trade partners of Turkey. Mixed evidence is found for the long-run PPP
 hypothesis when real exchange rate is defined in terms of German DM and
 Italian Lira. However, the empirical analysis reveals that the PPP
 hypothesis holds strongly in the long-run for the UK&#xa3; and US$ based
 real exchange rates series using either PPI or CPI. In corroboration with
 other studies in the literature, the bias correlated half-life estimates
 suggest relatively faster speeds of adjustment supporting the view that
 the deviations from the PPP rate dissipate rather quickly for relatively
 high inflation countries. 
Journal: Applied Economics 
Pages: 2037-2053 
Issue: 17 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500244584 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500244584 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:2037-2053




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Ledesma 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Ledesma 
Author-Name: Manuel Navarro 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Navarro 
Author-Name: Jorge Perez-Rodriguez 
Author-X-Name-First: Jorge 
Author-X-Name-Last: Perez-Rodriguez 
Title: Return to tourist destination. Is it reputation, after all? 
Abstract:
  In this paper the hypothesis that repeated purchases in the tourism
 markets could be considered as a consequence of asymmetrical information
 problems is studied. This hypothesis is analysed with the case study of
 the island of Tenerife using the estimation of a count data model. It was
 found that the length of the stay and the information obtained from
 previous visits and/or relatives and friends might increase the return to
 a destination suggesting the presence of a reputation mechanism as
 proposed by Shapiro (1983). The determinants of the willingness to return
 were also estimated, confirming the main results. 
Journal: Applied Economics 
Pages: 2055-2065 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293474 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293474 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2055-2065




Template-Type: ReDIF-Article 1.0
Author-Name: Hongbin Li 
Author-X-Name-First: Hongbin 
Author-X-Name-Last: Li 
Author-Name: Xianguo Yao 
Author-X-Name-First: Xianguo 
Author-X-Name-Last: Yao 
Author-Name: Junsen Zhang 
Author-X-Name-First: Junsen 
Author-X-Name-Last: Zhang 
Author-Name: Li-An Zhou 
Author-X-Name-First: Li-An 
Author-X-Name-Last: Zhou 
Title: Parental childcare and children's educational attainment: evidence from China 
Abstract:
  This paper examines the determinants of child educational attainment. In
 addition to those examined in previous studies, it is found that maternal
 childcare is another important determinant of child educational
 attainment. The results are robust after controlling for endogeneity. The
 IV estimates show that once childcare time is controlled for, child health
 does not have an effect on school enrolment age. This finding suggests
 that omitting the childcare time may have biased the estimated effect of
 child health on school enrolment in previous studies. 
Journal: Applied Economics 
Pages: 2067-2076 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293391 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293391 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2067-2076




Template-Type: ReDIF-Article 1.0
Author-Name: Bijou Yang 
Author-X-Name-First: Bijou 
Author-X-Name-Last: Yang 
Author-Name: David Lester 
Author-X-Name-First: David 
Author-X-Name-Last: Lester 
Title: Gender differences in e-commerce 
Abstract:
  Predictors of shopping online were compared for men and women using a
 sample of 365 college students. For the men, the only predictor of
 purchasing products online was the number of hours they spent online. For
 women, the predictors of making purchases online included anxiety about
 using computers and attitudes toward money, in addition to the number of
 hours spent online. The results were examined using OLS and MLE (logit and
 probit) regressions techniques, and the results from each technique
 compared and contrasted. 
Journal: Applied Economics 
Pages: 2077-2089 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293292 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293292 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2077-2089




Template-Type: ReDIF-Article 1.0
Author-Name: Dyuti Banerjee 
Author-X-Name-First: Dyuti 
Author-X-Name-Last: Banerjee 
Author-Name: Ahmed Khalid 
Author-X-Name-First: Ahmed 
Author-X-Name-Last: Khalid 
Author-Name: Jan-Egbert Sturm 
Author-X-Name-First: Jan-Egbert 
Author-X-Name-Last: Sturm 
Title: Socio-economic development and software piracy. An empirical assessment 
Abstract:
  The high rate of software piracy is a growing concern for software
 developers as well as businesses and governments. It is argued here that
 the piracy rate is influenced by expected benefits and costs to the
 pirates. A model is developed using a set of variables that may affect
 such benefits and costs and hence piracy rate in a country, and tested for
 a large sample of 53 countries. The results of this paper suggest that the
 existing socio-economic conditions and the lack of proper institutions in
 developing and emerging economies may be responsible for high software
 piracy rates. One may, therefore, infer that the current trends of
 globalization and socio-economic development may help software piracy in
 developing countries. 
Journal: Applied Economics 
Pages: 2091-2097 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293276 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293276 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2091-2097




Template-Type: ReDIF-Article 1.0
Author-Name: Marcio Laurini 
Author-X-Name-First: Marcio 
Author-X-Name-Last: Laurini 
Author-Name: Eduardo Andrade 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Andrade 
Author-Name: Pedro L. Valls Pereira 
Author-X-Name-First: Pedro L. Valls 
Author-X-Name-Last: Pereira 
Title: Income convergence clubs for Brazilian Municipalities: a non-parametric analysis 
Abstract:
  This article analyses the evolution of relative per capita income
 distribution of Brazilian municipalities over the period 1970-1996.
 Analyses are based on non-parametric methodologies and do not assume
 probability distributions or functional forms for the data. Two
 convergence tests have been carried out - a test for sigma convergence
 based on the bootstrap principle and a beta convergence test using
 smoothing splines for the growth regressions. The results obtained
 demonstrate the need to model the dynamics of income for Brazilian
 municipalities as a process of convergence clubs, using the methodology of
 transition matrices and stochastic kernels. The results show the formation
 of two convergence clubs, a low income club formed by the municipalities
 of the North and Northeast regions, and another high income club formed by
 the municipalities of the Center-West, Southeast and South regions. The
 formation of convergence clubs is confirmed by a bootstrap test for
 multimodality. 
Journal: Applied Economics 
Pages: 2099-2118 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500218554 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218554 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2099-2118




Template-Type: ReDIF-Article 1.0
Author-Name: Teruyoshi Kobayashi 
Author-X-Name-First: Teruyoshi 
Author-X-Name-Last: Kobayashi 
Title: Optimal monetary policy and the role of hybrid inflation-price-level targets 
Abstract:
  This study investigates the role of hybrid inflation-price-level targets
 as a solution to the well-known stabilization bias problem that arises
 under discretionary policies. The analysis shows that social welfare will
 be improved by employing a weighted average of inflation and price level
 as one of the central bank's target variables in addition to the output
 gap growth target. The reason is that imposing the optimal hybrid target
 will reduce inflation variability in a highly efficient way. In
 particular, the optimal hybrid regime outperforms other previously
 suggested regimes when the degree of inflation persistence is moderate. 
Journal: Applied Economics 
Pages: 2119-2125 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500119042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500119042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2119-2125




Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Farsi 
Author-X-Name-First: Mehdi 
Author-X-Name-Last: Farsi 
Author-Name: Massimo Filippini 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Filippini 
Author-Name: Michael Kuenzle 
Author-X-Name-First: Michael 
Author-X-Name-Last: Kuenzle 
Title: Unobserved heterogeneity in stochastic cost frontier models: an application to Swiss nursing homes 
Abstract:
  This paper applies a number of stochastic cost frontier models to a panel
 data set and compares their ability to distinguish unobserved
 heterogeneity from inefficiency variation among firms. The main focus is
 on Greene's 2005 panel data model that incorporates firm-specific effects
 in a stochastic frontier framework. In cases where the unobserved
 heterogeneity is correlated with explanatory variables, while the random
 effects estimators can be biased the fixed effects model may overestimate
 inefficiency. In line with Mundlak, a simple method is proposed to include
 such correlations in random effects specification. The sample includes 36
 Swiss nursing homes operating from 1993 to 2001. The results suggest that
 the proposed specification can avoid the inconsistency problem while
 keeping the inefficiency estimates unaffected. 
Journal: Applied Economics 
Pages: 2127-2141 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293201 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293201 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2127-2141




Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Chelley-Steeley 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Chelley-Steeley 
Author-Name: Claire Lavers 
Author-X-Name-First: Claire 
Author-X-Name-Last: Lavers 
Title: The propensity to hedge using futures contracts: the case of potato futures contracts 
Abstract:
  This paper studies why UK non-financial firms hedge with potato futures
 contracts. It is found that the financial characteristics of firms in the
 sample play an important role in influencing the propensity to hedge. For
 example, it is found that firms that hedge are on average larger than
 firms that do not hedge. Firms that hedge also have more volatile
 earnings. Furthermore, firms that do hedge appear to want to smooth
 earnings to reduce the costs of financial distress and avoid entering the
 highest tax threshold. 
Journal: Applied Economics 
Pages: 2143-2146 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500278152 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500278152 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2143-2146




Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Ballestero 
Author-X-Name-First: Enrique 
Author-X-Name-Last: Ballestero 
Author-Name: David Pla-Santamaria 
Author-X-Name-First: David 
Author-X-Name-Last: Pla-Santamaria 
Title: Grading the performance of market indicators with utility benchmarks selected from Footsie: a 2000 case study 
Abstract:
  The suitable choice of a benchmark portfolio is a critical problem prior
 to using the information ratio, as the performance ranking of funds
 depends on this choice. In this paper, a method to optimize benchmark
 selection taking account of the investor's preferences is proposed and
 applied to a case study of performance for 29 market indicators on stock
 exchanges throughout the world. The method that relies on recent results
 in optimization theory requires defining the opportunity set to select the
 benchmarks, this set being Footsie in the case study. The computational
 process and numerical results are presented through tables and figures,
 the accuracy of the method being also numerically tested. 
Journal: Applied Economics 
Pages: 2147-2160 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500278053 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500278053 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2147-2160




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Are the Australian and New Zealand stock prices nonlinear with a unit root? 
Abstract:
  Whether or not stock prices are characterized by a unit root has
 important implications for policy. For instance, by applying unit root
 tests one can deduce whether stock returns can be predicted from previous
 changes in prices. A finding of a unit root implies that stock returns
 cannot be predicted. This paper investigates whether or not stock prices
 for Australia and New Zealand can be characterized by a unit root process.
 An unrestricted two-regime threshold autoregressive model is used with an
 autoregressive unit root. Among the main results, it is found that the
 stock prices of both countries are nonlinear processes that are
 characterized by a unit root process, consistent with the efficient market
 hypothesis. 
Journal: Applied Economics 
Pages: 2161-2166 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217887 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217887 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2161-2166




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Gordon 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Gordon 
Author-Name: Lars Osberg 
Author-X-Name-First: Lars 
Author-X-Name-Last: Osberg 
Author-Name: Shelley Phipps 
Author-X-Name-First: Shelley 
Author-X-Name-Last: Phipps 
Title: Sampling variability: some observations from a labour supply equation 
Abstract:
  In economics, the number of observations available for empirical work is
 often predetermined. Researchers assume some large sample distribution and
 carry through with measurement and testing applied to data sets of varying
 sizes. The consequences of sampling variability are generally ignored. It
 is shown in a re-sampling experiment, using data sets of different sizes
 and estimating log-linear male labour supply equations, that a wide range
 of what appears to be statistically supported estimates of the wage
 elasticity of labour supply are generated. Testing based on bootstrapped
 estimates shows that 4000 observations are required to reduce sampling
 variability to statistically acceptable levels. 
Journal: Applied Economics 
Pages: 2167-2175 
Issue: 18 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500215428 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215428 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2167-2175




Template-Type: ReDIF-Article 1.0
Author-Name: Elias Soukiazis 
Author-X-Name-First: Elias 
Author-X-Name-Last: Soukiazis 
Author-Name: George Agiomirgianakis 
Author-X-Name-First: George 
Author-X-Name-Last: Agiomirgianakis 
Title: Editorial - the world economy and European integration 
Abstract:
Journal: Applied Economics 
Pages: 2177-2178 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500363459 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500363459 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2177-2178




Template-Type: ReDIF-Article 1.0
Author-Name: Guanqun Tong 
Author-X-Name-First: Guanqun 
Author-X-Name-Last: Tong 
Author-Name: Christopher Green 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Green 
Title: Pecking order or trade-off hypothesis? Evidence on the capital structure of Chinese companies 
Abstract:
  This study tests the pecking order and trade-off hypotheses of corporate
 financing decisions using a cross-section of the largest Chinese listed
 companies. The study is built on Allen (1993), Baskin (1989) and Adedeji
 (1998) to set up three models in which trade-off and pecking order
 theories give distinctively different predictions: (1) the determinants of
 leverage; (2) the relationship between leverage and dividends; and (3) the
 determinants of corporate investment. In model 1, a significant negative
 correlation is found between leverage and profitability; in model 2 a
 significant positive correlation between current leverage and past
 dividends is found. These results broadly support the pecking order
 hypothesis over trade-off theory. However, model 3 is inconclusive.
 Overall, the results provide tentative support for the pecking order
 hypothesis and demonstrate that a conventional model of corporate capital
 structure can explain the financing behaviour of Chinese companies. 
Journal: Applied Economics 
Pages: 2179-2189 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500319873 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500319873 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2179-2189




Template-Type: ReDIF-Article 1.0
Author-Name: Ulrich Thiessen 
Author-X-Name-First: Ulrich 
Author-X-Name-Last: Thiessen 
Title: Banking crises, regulation, and growth: the case of Russia 
Abstract:
  Recent empirical analyses of the relationship between financial system
 development and economic growth find that financial system development
 causes economic growth, is a good predictor of growth and that its impact
 is relatively large. Moreover, the empirical literature predicts that the
 adverse effects of banking crises on economic growth will rise in the
 absence of an adequate response by the government. Hence, given the
 Russian government's failure to respond adequately to the 1998 banking
 crisis, Russia's strong economic growth since the crisis is a puzzle. This
 study uses simulations to conclude that the growth costs of the 1998
 crisis were larger than previously suggested. The adverse effects were
 compensated by expansionary effects. The findings corroborate the
 importance of financial development in promoting growth in transition
 countries. 
Journal: Applied Economics 
Pages: 2191-2203 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500330474 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500330474 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2191-2203




Template-Type: ReDIF-Article 1.0
Author-Name: Helena Marques 
Author-X-Name-First: Helena 
Author-X-Name-Last: Marques 
Title: The skilled u-shaped Europe: is it really and on which side does it stand? 
Abstract:
  This study estimates a quadratic sectoral wage equation for the member
 countries of the enlarged EU where wages are a function of each country's
 geographical location with respect to market size (new trade/New Economic
 Geography (NEG) effect), human capital (HOS endowment effect), and
 productivity (Ricardian effect). Wages react to these variables according
 to a U-shaped curve. They react negatively to market size and productivity
 of neighbouring countries, but react positively to skilled labour in
 neighbouring countries. However, due to non-linearity, further increases
 in these variables will induce a reversal in the outcome. Wages react more
 to market size, less to skill endowments, and even less to productivity,
 making economies of scale an important mechanism in explaining why firms
 can afford to pay higher wages in larger markets. In addition, EU real
 wages are significantly determined by country-specific characteristics
 other than geography that push the real wages of old EU members upward and
 pull the real wages of new EU members downward. 
Journal: Applied Economics 
Pages: 2205-2220 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500361214 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500361214 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2205-2220




Template-Type: ReDIF-Article 1.0
Author-Name: Tapan Biswas 
Author-X-Name-First: Tapan 
Author-X-Name-Last: Biswas 
Author-Name: Jolian McHardy 
Author-X-Name-First: Jolian 
Author-X-Name-Last: McHardy 
Title: Measuring the balance of intra-regional migration 
Abstract:
  An original index is introduced for measuring the extent of the overall
 bilateral balance of migration among countries within a region which
 allows comparisons of the balance over time as well as between regions and
 various possible sub-regions. It is shown that having constructed the
 index it is also possible to establish a weighting of the contribution of
 each country to the overall degree of migration balance within a region.
 The new index is applied to three sub-groupings of the European Union
 (EU): (a) a mix of nine northern and southern EU15 countries; (b) seven
 northern EU15 countries; and, (c) four southern EU15 countries. It is
 shown that in each case migration in the 1990s was highly balanced and
 improving significantly over time. However, there was a substantial
 difference between the northern and southern countries with the former
 enjoying significantly higher overall balance in migration than the
 latter, although the rate of improvement in balance was much higher
 amongst the southern countries. Finally, whilst the UK and Portugal were
 persistently low contributors to the overall balance in EU migration,
 Germany's contribution was the highest. 
Journal: Applied Economics 
Pages: 2221-2230 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500330532 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500330532 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2221-2230




Template-Type: ReDIF-Article 1.0
Author-Name: Jet Yee 
Author-X-Name-First: Jet 
Author-X-Name-Last: Yee 
Author-Name: Mary Clare Ahearn 
Author-X-Name-First: Mary Clare 
Author-X-Name-Last: Ahearn 
Title: Government policies and farm size: does the size concept matter? 
Abstract:
  This paper employs a panel data set of 48 states from 1960 to 1996 to
 investigate the relationships of government policies (public agricultural
 research and development (R&D), extension, and government commodity
 program payments) to changes in farm size. Five different farm size
 measures are considered (acres operated per farm, real land and building
 value per farm, real cash receipts per farm, real cash receipts plus
 government payments per farm, and an imputed measure of the real capital
 service flow per farm) in order to make a more general statement about the
 impacts of government policies on farm size. It was found that the impacts
 of government policies on farm size are in general robust to the measure
 of farm size considered. More specifically, it was found that R&D,
 extension, and government payments all have positive effects on farm size. 
Journal: Applied Economics 
Pages: 2231-2238 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293904 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293904 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2231-2238




Template-Type: ReDIF-Article 1.0
Author-Name: Masao Tsuri 
Author-X-Name-First: Masao 
Author-X-Name-Last: Tsuri 
Title: Discretionary deficit and its effects on Japanese economy 
Abstract:
  This paper identifies the discretionary component of Japan's public
 deficits, which is included in the structural component in existing work.
 The identification is done by collecting data and information of stimulus
 packages. Discretionary expenditure, discretionary revenue, and cyclical
 revenue are the main factors of increases in public deficits in the 1990s.
 The revenue side has had greater impacts on deficits than expenditure. The
 effects of stimulus packages are examined, using the discretionary
 deficits. Stimulus policies have multiplier effects, while overall public
 deficits have not. Results of analyses indicate that: (1) stimulus
 packages have economic effects, (2) they also bring fiscal deficits, thus
 can be additional constraints on the government budget, (3) public
 deficits can be eased with GDP growth if tax is returned to the previous
 level, (4) the public finance has a structural deficit. 
Journal: Applied Economics 
Pages: 2239-2249 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293870 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293870 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2239-2249




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Serkan Tosun 
Author-X-Name-First: Mehmet Serkan 
Author-X-Name-Last: Tosun 
Author-Name: Sohrab Abizadeh 
Author-X-Name-First: Sohrab 
Author-X-Name-Last: Abizadeh 
Title: Economic growth and tax components: an analysis of tax changes in OECD 
Abstract:
  The paper examines empirically the changes in the tax mix of the OECD
 countries in response to economic growth from 1980 to 1999. It is found
 that economic growth, measured by GDP per capita, has had a significant
 effect on the tax mix of the OECD countries. Analysis reveals that
 different taxes respond differently to the growth of GDP per capita. It is
 shown that while the shares of personal and property taxes have responded
 positively to economic growth, shares of the payroll and goods and
 services taxes have shown a relative decline. 
Journal: Applied Economics 
Pages: 2251-2263 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293813 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2251-2263




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Ledesma-Rodriguez 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Ledesma-Rodriguez 
Author-Name: Manuel Navarro-Ibanez 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Navarro-Ibanez 
Author-Name: Jorge Perez-Rodriguez 
Author-X-Name-First: Jorge 
Author-X-Name-Last: Perez-Rodriguez 
Author-Name: Simon Sosvilla-Rivero 
Author-X-Name-First: Simon 
Author-X-Name-Last: Sosvilla-Rivero 
Title: Assessing the credibility of a target zone: evidence from the EMS 
Abstract:
  This paper provides some new evidence on the credibility of the Exchange
 Rate Mechanism (ERM) of the European Monetary System (EMS). The study
 differs from previous research in the literature in three main respects.
 First, the main contribution is the use of several credibility indicators,
 some of which have never been applied before to all of the currencies
 under study. This allows one to strengthen the results obtained in this
 paper. Second, a longer period than that of previous studies is analysed,
 covering the complete EMS history. Third, a comparison has been made of
 the prediction qualities of the different indicators, in order to explore
 their ability to capture the main ERM events (realignments, changes in the
 fluctuations bands and speculative pressures). Fourth, the indicators are
 applied to the experience of the new, modified ERM linking the currencies
 of non-euro area Member States to the euro, showing the relevance of this
 approach in the near future with the enlargement of the European Union. 
Journal: Applied Economics 
Pages: 2265-2287 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293722 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293722 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2265-2287




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Requena-Silvente 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Requena-Silvente 
Author-Name: James Walker 
Author-X-Name-First: James 
Author-X-Name-Last: Walker 
Title: Competition and product survival in the UK car market 
Abstract:
  The paper examines the extent to which inter- and intra-firm competition
 influenced the survival of cars in the UK market between 1971 and 1998. It
 is shown that, while competition influenced product survival in all market
 segments within the UK car market, the nature of that competition differed
 between them. In the small family and large family car segments,
 intra-firm competition dominated inter-firm competition. In contrast, in
 the luxury/sports car segment only inter-firm competition conditions
 resulted in product survival. Evidence was also found that the
 luxury/sports car segment has grown more competitive over time and that
 firms marketing products in the family car segments have become
 considerably more successful at avoiding the effects of intra-firm
 competition. 
Journal: Applied Economics 
Pages: 2289-2295 
Issue: 19 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500293656 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293656 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2289-2295




Template-Type: ReDIF-Article 1.0
Author-Name: Gesine Stephan 
Author-X-Name-First: Gesine 
Author-X-Name-Last: Stephan 
Author-Name: Knut Gerlach 
Author-X-Name-First: Knut 
Author-X-Name-Last: Gerlach 
Title: Wage settlements and wage setting: results from a multi-level model 
Abstract:
  Which dimensions of wage setting differ across establishments applying
 collective contracts and uncovered establishments? The empirical analysis
 reported here utilizes German linked employer-employee data for the years
 1990, 1995 and 2001 and is restricted to workers without supervisory
 functions in larger manufacturing firms. Results show that the expected
 wage of an average worker is higher in firms applying collective
 contracts, while returns to human capital and the gender wage gap are
 reduced. Moreover, during the 1990s these effects became stronger. 
Journal: Applied Economics 
Pages: 2297-2306 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500366429 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366429 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2297-2306




Template-Type: ReDIF-Article 1.0
Author-Name: Hyeon-Seung Huh 
Author-X-Name-First: Hyeon-Seung 
Author-X-Name-Last: Huh 
Title: A simple test of exogeneity for recursively structured VAR models 
Abstract:
  The restriction of exogeneity of certain variables in structural VAR
 models is rarely tested for consistency with the actual data. The reason
 is obvious: such a test requires estimates of the structural parameters.
 This paper proposes a solution for models that assume long-run or
 contemporaneous recursive structures in identification. We show that in
 such cases, the exogeneity restriction can be assessed statistically using
 the well-known Granger non-causality test which is conveniently performed
 in the reduced-form VAR model. Two empirical examples are offered to
 demonstrate the usefulness of this result. 
Journal: Applied Economics 
Pages: 2307-2313 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500366270 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366270 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2307-2313




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen 
Author-X-Name-First: Chung-Hua 
Author-X-Name-Last: Shen 
Author-Name: Chien-An Wang 
Author-X-Name-First: Chien-An 
Author-X-Name-Last: Wang 
Title: The impact of cross-ownership on the reaction of corporate investment and financing constraints: a panel threshold model 
Abstract:
  This paper studies whether or not investment decisions are financially
 constrained in a cross-ownership system of Taiwan. Different from the
 financial structure in the USA, subsidiaries in Taiwan are allowed to buy
 stocks of the parent companies. Hence, the conventional debt-to-equity
 ratio is inappropriate to divide firms into high and low-debt firms.
 Instead, a new threshold variable - the adjusted debt-equity ratio (ADE) -
 is employed to divide the sample into high-debt firms and low-debt firms.
 A panel of 115 Taiwan-listed firms for the period 1991-1997 is used.
 Evidence supports the cash flow hypothesis and ADE has a notable
 significant influence on the financial constraints. 
Journal: Applied Economics 
Pages: 2315-2325 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500218786 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2315-2325




Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Esteve 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Esteve 
Author-Name: Juan Sanchis-Llopis 
Author-X-Name-First: Juan 
Author-X-Name-Last: Sanchis-Llopis 
Title: Estimating the substitutability between private and public consumption: the case of Spain, 1960-2003 
Abstract:
  This paper examines the relationship between private and public
 consumption using Spanish data over the period 1960-2003, using a two-good
 permanent-income model. We extend previous analysis addressing the
 question of whether this relationship is stable over time, or exhibits a
 structural break allowing the instability to occur at an unknown point in
 time. Our empirical results indicated the existence of a long-run
 relationship between private and public consumption. We also detect a
 structural change of regime shift in the cointegration regression around
 the time of 1973-74. Finally, the estimated intratemporal and
 intertemporal elasticities of substitution between the two types of
 expenditure suggest that private and public consumption in Spain are
 Edgeworth-Pareto substitutes. 
Journal: Applied Economics 
Pages: 2327-2334 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500309288 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500309288 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2327-2334




Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Cavaliere 
Author-X-Name-First: Giuseppe 
Author-X-Name-Last: Cavaliere 
Title: Testing mean reversion in target-zone exchange rates 
Abstract:
  The aim of the paper is to assess to what extent European Monetary System
 (EMS) target zone exchange rates have been characterized by mean reverting
 behaviour. To this purpose, a new class of mean reversion tests is
 introduced. With respect to standard approaches, the proposed tests -
 which are based on the sample excursion of the exchange rate within the
 band - have a better ability to detect target-zone mean reverting
 dynamics. The empirical analysis of the exchange rates among the main EMS
 currencies shows that the degree of mean reversion is much higher than
 what has been reported in the literature, both before and after the target
 zone widening of 1993. Finally, the proposed tests have a wider range of
 applications since they originate a new approach to unit root testing. 
Journal: Applied Economics 
Pages: 2335-2347 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500359283 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500359283 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2335-2347




Template-Type: ReDIF-Article 1.0
Author-Name: Esa Mangeloja 
Author-X-Name-First: Esa 
Author-X-Name-Last: Mangeloja 
Title: Economic growth and religious production efficiency 
Abstract:
  Moral institutions, religions and ethics affect the economic development,
 as for example, trust and honesty are essential requirements for emerging
 economic activity. Religious production efficiency measure is constructed
 and used in economic growth regressions for 8 OECD countries. By using
 panel estimation methods and additionally time-series estimations for each
 country, more information is gained concerning the country specific growth
 and religion characteristics. Empirical evidence from the panel data
 estimations seems to suggest that religious beliefs attain more relevance
 than religious attendance. Religious production efficiency, containing
 both belief and activity aspects, was not found statistically significant
 with panel data or with individiual 8 OECD countries growth model, except
 for Finland. Significant coefficient for Finland can be explained by
 referring to Finland's unique religious market properties, as the level of
 religious beliefs have historically been unusually high in Finland. On the
 other hand, attendance in religious activities has followed the typical
 Northern-European decreasing trend. More exact understanding on the links
 between these concepts are essentially needed to better model the economic
 consequences of cultural, religious and moral variables. 
Journal: Applied Economics 
Pages: 2349-2359 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500217531 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217531 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2349-2359




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Rong Chen 
Author-X-Name-First: Jong-Rong 
Author-X-Name-Last: Chen 
Author-Name: Chih-Hai Yang 
Author-X-Name-First: Chih-Hai 
Author-X-Name-Last: Yang 
Title: Technological knowledge, spillover and productivity: evidence from Taiwanese firm level panel data 
Abstract:
  Using a panel data on Taiwanese manufacturing firms from 1990-1997, this
 study investigates the relationship among technological knowledge,
 spillover and productivity. In addition to R&D stock, we also employ
 patent counts to construct the output-side indicators of knowledge and
 spillover to explore the relationship between knowledge and productivity.
 We find a very significant contribution of R&D, patents and spillover
 stock to productivity. In addition, the magnitude of the patent stock
 coefficient is substantially larger than that estimated by R&D stock. Our
 results imply that innovative activity investment has been very productive
 in increasing output for Taiwanese manufacturing firms in the 1990s. 
Journal: Applied Economics 
Pages: 2361-2371 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500309262 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500309262 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2361-2371




Template-Type: ReDIF-Article 1.0
Author-Name: John Kwoka 
Author-X-Name-First: John 
Author-X-Name-Last: Kwoka 
Title: Electric power distribution: economies of scale, mergers, and restructuring 
Abstract:
  Electricity distribution is generally viewed as a natural monopoly and
 therefore as having the least potential for the kinds of reforms that have
 swept the electric power sector in many countries. Mergers among
 distribution companies and efforts at retail competition have nonetheless
 altered the operation of the distribution stage. This research into US
 electric utilities uses a much larger and less selective data base than
 previously available to examine the scale properties of distribution with
 respect to output, distance, and customer numbers, and for different
 functions within distribution. It finds significant economies at low
 output levels, holding system size and customer density constant, but the
 cost gradient is otherwise modest. It also finds that geographic size and
 customer numbers are quite important and that economies are significantly
 stronger for the infrastructure or 'wires' business than for the marketing
 function performed by distribution utilities. These results lend credence
 to efforts at retail competition that separates these functions, but cast
 doubt on the benefits of mergers between distribution systems. 
Journal: Applied Economics 
Pages: 2373-2386 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500309247 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500309247 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2373-2386




Template-Type: ReDIF-Article 1.0
Author-Name: Huimin Chung 
Author-X-Name-First: Huimin 
Author-X-Name-Last: Chung 
Author-Name: Tsung-Wu Ho 
Author-X-Name-First: Tsung-Wu 
Author-X-Name-Last: Ho 
Author-Name: Ling-Ju Wei 
Author-X-Name-First: Ling-Ju 
Author-X-Name-Last: Wei 
Title: The dynamic relationship between the prices of ADRs and their underlying stocks: evidence from the threshold vector error correction model 
Abstract:
  This paper sets out to estimate the dynamic relationship that exists
 between the prices of ADRs and their underlying stocks, in both the short
 run and the long run, using a number of recent developments of the
 threshold cointegration framework. The empirical results support the
 notion of nonlinear mean reversion of the prices of ADRs and their
 underlying stocks. 
Journal: Applied Economics 
Pages: 2387-2394 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500218729 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218729 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2387-2394




Template-Type: ReDIF-Article 1.0
Author-Name: William Stine 
Author-X-Name-First: William 
Author-X-Name-Last: Stine 
Title: Do budget maximizing public officials increase the probability of property reassessment? 
Abstract:
  County governments in Pennsylvania face non-binding limits on their
 property tax rates. These are considered non-binding because they do not
 place a limit on tax levies or expenditures. Assuming local public
 officials have monopoly power, tax rate limits can be circumvented by
 reassessing the property tax base. A two-stage process was hypothesized in
 which the probability of reaching tax rate limits first was determined and
 the probability of reassessment then was determined. The effect of budget
 maximizing government officials at each stage was tested for 66
 Pennsylvania counties over the 1970-1995 period. The empirical results
 showed that variables associated with budget maximizing behaviour
 influenced the choice in each stage. Public expenditure growth increased
 the probability of reaching the tax rate limit in the first stage while
 reaching the tax rate limit increased the probability of reassessment in
 the second stage. The estimates also showed that economic, fiscal and
 taste variables were significant determinants of these probabilities. 
Journal: Applied Economics 
Pages: 2395-2405 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500218646 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2395-2405




Template-Type: ReDIF-Article 1.0
Author-Name: Nasri Harb 
Author-X-Name-First: Nasri 
Author-X-Name-Last: Harb 
Title: Import demand in heterogeneous panel setting 
Abstract:
  To study the elasticities of import demand function, a heterogeneous
 panel is built with data of 40 countries and using panel unit root tests
 (Im et al., 1997) and panel cointegration tests (Pedroni, 2004). The model
 is tested with two previously used activity variables: GDP and GDP minus
 Export for a performance comparison. To estimate elasticities, use is made
 of two modified panel versions of FMOLS and DOLS developed by Pedroni
 (1996, 2000, 2001). The tests prove that GDP outperforms GDP minus Exports
 as an activity variable in the cointegration context. FMOLS and DOLS give
 close results when individual estimates are done. When between-dimension
 estimators are used, conflicting results are obtained. Then, the sample is
 split into developed and developing countries and it is shown that income
 elasticity in developing countries are not different than unity on average
 and are higher than in developed countries contradicting previous
 literature results. 
Journal: Applied Economics 
Pages: 2407-2415 
Issue: 20 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/000368405002000345550 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368405002000345550 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2407-2415




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Fingleton 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Fingleton 
Title: Towards applied geographical economics: modelling relative wage rates, incomes and prices for the regions of Great Britain 
Abstract:
  One of the key issues surrounding geographical economics is whether the
 theory can be made operational, so that proper investigations can be made
 of the basic theoretical assumptions and practical use can be made of the
 model's predictions at a detailed spatial level. In this paper the model
 formalized by Fujita et al. (1999) is developed in the context of 36
 regions of Great Britain, enabling direct comparisons with observed wage
 rate data that are used to calibrate the model. Iceberg transport costs
 are in the form of an exponential function and a power function. For the
 range of parameters considered, the power function gives a better fit
 between model and data, suggesting scale economies in transportation. The
 paper shows that, in spite of the assumptions that have to be made, quite
 realistic distributions of relative wages, income and prices are
 attainable. However, caution is required in the interpretation of these
 simulations, which in no way provide proof of New Economic Geography
 theory, which clearly has limitations. Nonetheless it is hoped that the
 work reported in this paper does help to advance the progress of
 geographical economics theory towards empirical verification. 
Journal: Applied Economics 
Pages: 2417-2428 
Issue: 21 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500366221 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366221 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2417-2428




Template-Type: ReDIF-Article 1.0
Author-Name: Werner Holzl 
Author-X-Name-First: Werner 
Author-X-Name-Last: Holzl 
Title: Tangible and intangible sunk costs and the entry and exit of firms in a small open economy: the case of Austria 
Abstract:
  The paper provides evidence on the role of sunk costs as mobility
 barriers. An empirical study of the Austrian manufacturing industry
 explicitly considers sunk costs related to investment in dedicated
 intangible assets. The results confirm the relevance of sunk costs as
 mobility barriers, their symmetry with respect to entry and exit, and show
 that the influence of sunk costs is robust to aggregation. 
Journal: Applied Economics 
Pages: 2429-2443 
Issue: 21 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500365850 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500365850 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2429-2443




Template-Type: ReDIF-Article 1.0
Author-Name: Ulrich Fritsche 
Author-X-Name-First: Ulrich 
Author-X-Name-Last: Fritsche 
Author-Name: Vladimir Kuzin 
Author-X-Name-First: Vladimir 
Author-X-Name-Last: Kuzin 
Title: Declining output volatility in Germany: impulses, propagation, and the role of monetary policy 
Abstract:
  The decline in output volatility in Germany is analysed. A lower level of
 variance in an autoregressive model of output growth can be either due to
 a change in the structure of the economy (a change in the propagation
 mechanism) or a reduced error term variance (reduced impulses). In Germany
 the decline output volatility is due to a decline in the persistence of
 the growth process. This is in contrast to the US results, where a break
 in the variance seems to dominate the decline in persistence. A change in
 the conduct of monetary policy (the establishment of another monetary
 policy regime) could be part of an explanation for the change in
 propagation. Stochastic simulations with a New Keynesian DSGE model
 support the hypothesis. 
Journal: Applied Economics 
Pages: 2445-2457 
Issue: 21 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500359317 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500359317 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2445-2457




Template-Type: ReDIF-Article 1.0
Author-Name: Zhuo Chen 
Author-X-Name-First: Zhuo 
Author-X-Name-Last: Chen 
Author-Name: Steven Yen 
Author-X-Name-First: Steven 
Author-X-Name-Last: Yen 
Title: On bias correction in the multivariate sample-selection model 
Abstract:
  Heien and Wessells' two-step estimator for the multivariate
 sample-selection model has been used extensively during the past 15 years.
 A modified version of it, with slightly different selectivity regressors,
 has also appeared in the empirical literature. Both estimators are
 unfounded and generally do not correct for the sample selectivity bias as
 intended but have continued to gain popularity in empirical applications.
 The properties of the modified Heien-Wessells procedure are investigated
 in both the bivariate and multivariate contexts, and the conditions under
 which this estimator fails to correct for sample selectivity are examined.
 The theoretical properties are demonstrated with a simulated random
 sample. 
Journal: Applied Economics 
Pages: 2459-2468 
Issue: 21 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500366346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2459-2468




Template-Type: ReDIF-Article 1.0
Author-Name: Theis Theisen 
Author-X-Name-First: Theis 
Author-X-Name-Last: Theisen 
Title: Tanzanian formal sector workers' participation in informal production 
Abstract:
  A theoretical model is developed explaining formal sector workers
 participation in the informal sector. A reduced-form informal sector
 participation function is derived from a specific utility function, a
 specific informal sector production function, and a specific informal
 sector earnings function. The participation function can be estimated
 consistently, and provides a solution to the problem that informal sector
 'wages' in developing countries are hard to observe. A sample of Tanzanian
 formal sector workers is used to estimate the participation function. A
 majority of Tanzanian formal sector workers participate in informal
 production. Participation in informal production is inversely related to
 household income, to living in Dar es Salaam, and to being a mother with
 small children. Participation is positively related to age, and
 multiple-job-holding seems to play a very different role in the transition
 from work to retirement in Tanzania compared to industrialized countries. 
Journal: Applied Economics 
Pages: 2469-2485 
Issue: 21 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500366197 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366197 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2469-2485




Template-Type: ReDIF-Article 1.0
Author-Name: Adnan Kasman 
Author-X-Name-First: Adnan 
Author-X-Name-Last: Kasman 
Author-Name: Saadet Kirbas-Kasman 
Author-X-Name-First: Saadet 
Author-X-Name-Last: Kirbas-Kasman 
Author-Name: Evrim Turgutlu 
Author-X-Name-First: Evrim 
Author-X-Name-Last: Turgutlu 
Title: Nominal and real convergence between the CEE countries and the EU: a fractional cointegration analysis 
Abstract:
  This paper examines the real and nominal convergence between the Central
 and Eastern European countries and the EU, using fractional cointegration
 analysis for the period 1980-2003. Fractional cointegration analysis is a
 flexible methodology, which allows for more subtle forms of mean
 reversion. The tests performed are those of Geweke and Porter-Hudak. The
 convergence processes are valid when macroeconomic time series used in the
 study are fractionally cointegrated. The results indicate that inflation
 and interest rates series of six sample countries are fractionally
 cointegrated with those of the EU. Therefore, nominal convergence has been
 achieved by some of the transition countries, but the equilibrium errors
 display long memory. Results also indicate that industrial outputs of most
 countries in the sample are not fractionally cointegrated with that of the
 EU. The results further indicate that both nominal and real convergence
 have been achieved only for Hungary. 
Journal: Applied Economics 
Pages: 2487-2500 
Issue: 21 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500366312 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366312 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2487-2500




Template-Type: ReDIF-Article 1.0
Author-Name: Roger Perman 
Author-X-Name-First: Roger 
Author-X-Name-Last: Perman 
Author-Name: Christophe Tavera 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Tavera 
Title: A cross-country analysis of the Okun's Law coefficient convergence in Europe 
Abstract:
  The paper examines whether or not evidence is consistent with convergence
 of the Okun's Law coefficient (OLC) among several alternative groupings of
 European economies. A two-step empirical strategy is employed. The first
 step obtains rolling regression estimates of the OLC for individual
 European countries. The second step examines how the cross-country
 variance of the OLC evolves over the decade until 2002 in the selected
 country groupings. Evidence is found consistent with convergence of the
 OLC among northern European countries, and among countries with
 centralized wage bargaining, but an absence of convergence in other
 country groups. 
Journal: Applied Economics 
Pages: 2501-2513 
Issue: 21 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500366395 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366395 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2501-2513




Template-Type: ReDIF-Article 1.0
Author-Name: Ivan Paya 
Author-X-Name-First: Ivan 
Author-X-Name-Last: Paya 
Author-Name: David Peel 
Author-X-Name-First: David 
Author-X-Name-Last: Peel 
Title: The process followed by PPP data. On the properties of linearity tests 
Abstract:
  Recent research has reported the lack of correct size in stationarity
 test for PPP deviations within a linear framework. However, theoretically
 well motivated non-linear models, such as the ESTAR, appear to
 parsimoniously fit the PPP data and provide an explanation for the PPP
 'puzzle'. Employing Monte Carlo experiments the size and power of the
 non-linear tests are analysed against a variety of nonstationary
 hypotheses. Aslo the ESTAR model is fitted to data from high inflation
 economies. The results provide further support for ESTAR specification. 
Journal: Applied Economics 
Pages: 2515-2522 
Issue: 21 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500390189 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390189 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2515-2522




Template-Type: ReDIF-Article 1.0
Author-Name: Bai Yuanliang 
Author-X-Name-First: Bai 
Author-X-Name-Last: Yuanliang 
Author-Name: Zhang Zongyi 
Author-X-Name-First: Zhang 
Author-X-Name-Last: Zongyi 
Title: Aggregate cigarette demand and regional differences in China 
Abstract:
  National educational level, final consumption expenditure, average
 propensity to cigarette consumption (APCC) and cigarette price are adopted
 to research the regional and national aggregate cigarette demand of China.
 Under the condition that the effects of anti-smoking education in the
 Chinese current educational system are not remarkable, the theoretical
 model shows that cigarette demand will increase with the increase of
 national educational level. Empirical analysis points out that cigarette
 demand increases with the increase of educational level. Estimates also
 suggest that cigarette price, consumption expenditure and APCC will affect
 cigarette demand significantly, and that there are great differences for
 cigarette demand by region. 
Journal: Applied Economics 
Pages: 2523-2528 
Issue: 21 
Volume: 37 
Year: 2005 
X-DOI: 10.1080/00036840500358640 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500358640 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2523-2528




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Title: On the evolution of competition: an application of nonlinear tests 
Abstract:
  A corollary of the Coase Theorem maintains that, where free market
 precepts exist, the allocation of property rights would not impact the
 level of competition within an industry. Within the Major League Baseball
 industry, for example, the theorem would suggest that institutional
 arrangements such as free-agency would not impact player distributions
 and, therefore, would fail to alter competitive balance. In order to
 examine this implication, the present paper investigates the univariate
 behaviour of competition balance. In the end, it appears that an increased
 labour pool, rather than institutional changes, is responsible for
 movements in competitive levels within the industry. Specifically, the
 evidence suggests that competitive balance measures are trend-stationary.
 However, the trend is nonlinear and is common to Baseball's labour pool,
 i.e. the two co-trend. 
Journal: Applied Economics 
Pages: 1-12 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500218604 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218604 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:1-12




Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso 
Author-X-Name-First: Oscar 
Author-X-Name-Last: Afonso 
Title: Skill-biased technological knowledge without scale effects 
Abstract:
  In the skill-biased technological change literature, the
 technological-knowledge bias, which drives wage inequality, is determined
 by the market-size channel. Motivated by the literature on scale effects
 since Jones (1995a, b), the standard R&D technology is modified so that
 wage inequality results similarly from the technological-knowledge bias,
 which is instead induced by the price channel. Thus, by solving the
 transitional dynamics numerically, it is shown that the recent rise of the
 skill premium, which is highlighted by, e.g., Acemoglu (2002a), arises
 from the price-channel effect, complemented with a mechanism that can be
 called technological-knowledge-absorption effect. 
Journal: Applied Economics 
Pages: 13-21 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367625 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367625 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:13-21




Template-Type: ReDIF-Article 1.0
Author-Name: Begona Cueto 
Author-X-Name-First: Begona 
Author-X-Name-Last: Cueto 
Author-Name: Javier Mato 
Author-X-Name-First: Javier 
Author-X-Name-Last: Mato 
Title: An analysis of self-employment subsidies with duration models 
Abstract:
  The determinants of continuity of subsidized self-employment activities
 are studied by means of duration models in Asturias (Spain). Variables
 related to socio-economic characteristics of the self-employed and to
 subsidized businesses are included in the models. Moreover, to consider
 the economic situation, the regional unemployment rate has been taken into
 account. A general survival analysis is complemented with a competing risk
 model that considers two types of exits from self-employment (failure
 versus other reasons). The significant variables that explain survival are
 age, industry, whether the business is the main source of family income or
 not and the unemployment rate. 
Journal: Applied Economics 
Pages: 23-32 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367542 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367542 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:23-32




Template-Type: ReDIF-Article 1.0
Author-Name: Petko Kalev 
Author-X-Name-First: Petko 
Author-X-Name-Last: Kalev 
Author-Name: Brett Inder 
Author-X-Name-First: Brett 
Author-X-Name-Last: Inder 
Title: The information content of the term structure of interest rates 
Abstract:
  This paper presents the results of an alternative test of the rational
 expectations theory of the term structure of interest rates. Other
 researchers have also examined the validity of the expectations hypothesis
 of term structure. While there is more often rejection of the expectations
 hypothesis, no other theory (data-consistent with the entire yield curve)
 provides an empirically adequate explanation of this phenomenon. The study
 considers postwar US pure discount (zero coupons) bond yields with various
 maturities, from one month to 60 months. Based on the ex post formation of
 rational expectations, the expectations error is quantified and the level
 of truth of the expectations hypothesis tested, that is, the strength of
 the departure of the yield curve from the expectations theory. The results
 suggest that a significant amount of information available at no cost to
 market agents is not incorporated in forming people's expectations. 
Journal: Applied Economics 
Pages: 33-45 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500365967 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500365967 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:33-45




Template-Type: ReDIF-Article 1.0
Author-Name: Cesar Rodriguez-Gutierrez 
Author-X-Name-First: Cesar 
Author-X-Name-Last: Rodriguez-Gutierrez 
Title: An explanation of the changes in the proportion of temporary workers in Spain 
Abstract:
  In this paper a theoretical model is developed to identify the main
 determinants of the proportion of temporary workers at firms. The outcomes
 show that the proportion of temporary workers has a counter-cyclical
 behaviour: it grows during the slump period up to 1995 and falls during
 the subsequent recovery. However, given the effect of the general economic
 cycle, firms that raise their sales or improve their market dynamism index
 tend to increase their proportion of temporary workers. This proportion
 also rises when the average labour cost decreases, firm size increases,
 and the knowledge capital stock diminishes. 
Journal: Applied Economics 
Pages: 47-62 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500218612 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218612 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:47-62




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Are bilateral real exchange rates stationary? Evidence from Lagrange multiplier unit root tests for India 
Abstract:
  The paper examines the stationarity of India's real exchange rate
 vis-a-vis 16 of its major trading partner countries for the period
 1960-2000. Application of the conventional ADF unit root test, the
 Lagrange multiplier (LM) unit root test with one structural break, and the
 LM unit root test with two structural breaks provides evidence that
 India's exchange rate vis-a-vis 15 out of 16 countries is stationary,
 implying support for purchasing power parity. 
Journal: Applied Economics 
Pages: 63-70 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500365983 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500365983 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:63-70




Template-Type: ReDIF-Article 1.0
Author-Name: Myung Hoon Yi 
Author-X-Name-First: Myung Hoon 
Author-X-Name-Last: Yi 
Author-Name: Changkyu Choi 
Author-X-Name-First: Changkyu 
Author-X-Name-Last: Choi 
Title: A GMM test of the precautionary saving hypothesis with nonexpected-utility preferences 
Abstract:
  Using GMM estimation with the US data from January 1967 to April 2003,
 the precautionary saving hypothesis is tested using time-varying
 consumption uncertainty and a nonexpected-utility model of intertemporal
 optimal consumption. Overidentifying restrictions of the model
 specification are also tested for both expected and nonexpected utility
 using Hansen's J-statistics. It was found that the precautionary saving
 hypothesis did not hold under expected-utility preferences but did hold
 partly under nonexpected-utility preferences. 
Journal: Applied Economics 
Pages: 71-78 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367492 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367492 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:71-78




Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Di Pietro 
Author-X-Name-First: Giorgio Di 
Author-X-Name-Last: Pietro 
Author-Name: Peter Urwin 
Author-X-Name-First: Peter 
Author-X-Name-Last: Urwin 
Title: Education and skills mismatch in the Italian graduate labour market 
Abstract:
  This paper focuses on education and skills mismatch among Italian
 graduates. Indicators for over- and under-utilization of education and
 under-utilization of skills are included as explanatory factors in a wage
 equation, testing theories that could explain the effect of over-schooling
 on wages. We find little evidence to support assignment theory and also
 identify a relatively weak wage effect arising from educational mismatch
 associated with employers', as opposed to employees', perceptions of the
 job requirements. Our interpretation is that some employers have
 re-categorized jobs as requiring a degree, when they were previously
 filled by non-graduates, and many have not altered pay scales accordingly. 
Journal: Applied Economics 
Pages: 79-93 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500215303 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215303 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:79-93




Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Sonedda 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Sonedda 
Title: A structural VAR approach on labour taxation policies 
Abstract:
  This paper presents a Structural VAR analysis on the employment and
 output effects of labour tax policies in six European countries for the
 period 1974-1997. By considering impulse response functions, it turns out
 that, on average, a shock to the total personal income tax revenues is
 positively correlated to employment, whereas there is mixed evidence on
 the output effect. Moreover, the quantitative impact of these effects,
 especially those related to the output, appears to be quite small.
 However, by introducing explicitly four labour tax parameters (namely the
 marginal and average tax rates for the personal income tax and the payroll
 tax), it turns out that these effects are not negligible after all: for
 some countries it is possible to conceive labour taxes as policy
 instruments favouring more employment and a better economic performance.
 However, the empirical support on the sign of the output and employment
 effects is mixed, suggesting that the same domestic fiscal policy does not
 produce the same impact in all the European countries. 
Journal: Applied Economics 
Pages: 95-114 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500166415 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500166415 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:95-114




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Christopher Moore 
Author-X-Name-First: Simon Christopher 
Author-X-Name-Last: Moore 
Title: The value of reducing fear: an analysis using the European Social Survey 
Abstract:
  This paper calculates the shadow price of fear of crime using the
 European Social Survey. A multiple regression model is specified with
 happiness as the outcome variable and fear of crime, total household
 income and control variables as independent variables. Both income and
 fear of crime are significantly associated with happiness and the total
 household income required to compensate an average household for an
 increase in fear of crime is estimated. 
Journal: Applied Economics 
Pages: 115-117 
Issue: 1 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500368094 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368094 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:115-117




Template-Type: ReDIF-Article 1.0
Author-Name: David Demery 
Author-X-Name-First: David 
Author-X-Name-Last: Demery 
Author-Name: Nigel Duck 
Author-X-Name-First: Nigel 
Author-X-Name-Last: Duck 
Title: Demographic change and the UK savings rate 
Abstract:
  Microeconomic data are used to explore the effects of a changing
 age-structure on the UK's aggregate personal savings rate. The findings
 suggest that changes to the population's age structure have had
 detectable, sustained, but, relative to the yearly changes observed in the
 savings rate over the previous century, modest effects on aggregate
 personal sector savings. It is estimated that the projected changes to the
 UK's age structure over the next 40 years are likely to raise the UK's
 savings rate but by no more than two percentage points. No basis is found
 for the view that the aggregate savings rate will decline as a result of
 the anticipated ageing of the UK population. 
Journal: Applied Economics 
Pages: 119-136 
Issue: 2 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500390361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:119-136




Template-Type: ReDIF-Article 1.0
Author-Name: Miroslav Verbic 
Author-X-Name-First: Miroslav 
Author-X-Name-Last: Verbic 
Title: Discussing the parameters of preservation of perishable goods in a cold logistic chain model 
Abstract:
  The paper discusses the parameters of preservation of perishable goods in
 cold logistic chains. The key parameters are the intensity of
 deterioration of goods, the conservation effect of perishable goods and
 the delay of activation of the conservation effect. The values of these
 parameters determine the quantity of the product being deteriorated in the
 logistic chain and the extent to which the deterioration can be
 alleviated. Econometric estimation thus presents the quantity effects of
 preservation procedures, whereas the financial effects can be derived
 using the proper price categories in the calculation of the net present
 value or the annuity stream. In this way one can determine whether the
 implementation of preservation procedures is more rational than the
 purchase of an attainable insurance policy. 
Journal: Applied Economics 
Pages: 137-147 
Issue: 2 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367609 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367609 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:137-147




Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Mishra 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Mishra 
Author-Name: Barry Goodwin 
Author-X-Name-First: Barry 
Author-X-Name-Last: Goodwin 
Title: Revenue insurance purchase decisions of farmers 
Abstract:
  The objective of this study is to evaluate farm, household, and financial
 characteristics of cash grain farmers' decisions of whether to purchase
 revenue insurance. Using farm-level data these characteristics were
 identified by estimating a logit model of revenue insurance purchase
 decisions by farm operators. Results indicate that farm operators with the
 ability to self-insure through accumulation of sufficient wealth reserves
 measured in terms of the ratio of debts-to-assets, operators with off-farm
 income, and participation in production and marketing contracts, are more
 likely to pursue these strategies as a substitute for federal revenue
 insurance programmes. Further, study finds that older and wealthy cash
 grain farmers are less likely to buy revenue insurance. 
Journal: Applied Economics 
Pages: 149-159 
Issue: 2 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367724 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367724 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:149-159




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Yuan Chen 
Author-X-Name-First: Ming-Yuan 
Author-X-Name-Last: Chen 
Title: Managerial ownership and firm performance: an analysis using switching simultaneous-equations models 
Abstract:
  This paper uses a switching simultaneous-equations model to examine the
 relation between managerial ownership and firm performance. The model
 includes a multinomial logit for the firm's choice among three regimes of
 large-block ownership, which can be argued as the choice among different
 degrees of controlling-minority structures, and three
 simultaneous-equations systems of managerial ownership and performance for
 each ownership regime. The paper argues that the choice of ownership
 regimes is the firm's endogenous decision as a reflection of the
 firm-specific organizational and transactional attributes, and hence the
 impact of managerial ownership on performance varies across firms
 belonging to different regimes. Empirical results show that family
 involvement in the management and significant related-party transactions
 are important factors to determine the firm's choice of ownership regimes.
 Evidence also indicates that the patterns of the relation between
 managerial ownership and firm performance, in the sense that the
 inflection points for the impact of managerial ownership turning from
 positive to negative, are markedly different across ownership regimes.
 Interpretations consistent with the endogeneity of managerial ownership
 are provided. 
Journal: Applied Economics 
Pages: 161-181 
Issue: 2 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500368136 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368136 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:161-181




Template-Type: ReDIF-Article 1.0
Author-Name: Camilo Sarmiento 
Author-X-Name-First: Camilo 
Author-X-Name-Last: Sarmiento 
Title: Transfer function estimation of trade leakages generated by court rulings in the Hawai'i longline fishery 
Abstract:
  Under the Endangered Species Act (ESA) mandate to protect turtle stocks
 from incidental contact, the Emergency Interim Rule of August 2000
 prohibited Hawai'i permit holders from targeting swordfish in the area
 from the Equator to 28&#xb0;N and between 173&#xb0;E and 137&#xb0;W. As a
 result of this interim rule, landings of swordfish in Hawai'i decreased
 93% in 2001. This paper implements a transfer function analysis to measure
 trade leakages generated by this ruling. This case study for the Hawai'i
 fishery measures the limitations of the ESA when enforcement has
 jurisdiction on some producers, but not others. 
Journal: Applied Economics 
Pages: 183-190 
Issue: 2 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500368078 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:183-190




Template-Type: ReDIF-Article 1.0
Author-Name: Abdullahi Abdulkadri 
Author-X-Name-First: Abdullahi 
Author-X-Name-Last: Abdulkadri 
Author-Name: Michael Langemeier 
Author-X-Name-First: Michael 
Author-X-Name-Last: Langemeier 
Author-Name: Allen Featherstone 
Author-X-Name-First: Allen 
Author-X-Name-Last: Featherstone 
Title: Estimating economies of scope and scale under price risk and risk aversion 
Abstract:
  This study uses duality to examine the effects of excluding output price
 risk and risk aversion on cost structures. Using data for Kansas wheat and
 beef-cow operations, a dual risk model was used to determine multi-product
 and product-specific scale economies, and economies of scope. Estimates
 for these measures were compared with those obtained from a deterministic
 model. The results show that product-specific scale economies are
 over-estimated and economies of scope and multi-product scale economies
 are under-estimated for the deterministic model compared to the risk
 model. 
Journal: Applied Economics 
Pages: 191-201 
Issue: 2 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367716 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367716 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:191-201




Template-Type: ReDIF-Article 1.0
Author-Name: Gilles Dufrenot 
Author-X-Name-First: Gilles 
Author-X-Name-Last: Dufrenot 
Author-Name: Laurent Mathieu 
Author-X-Name-First: Laurent 
Author-X-Name-Last: Mathieu 
Author-Name: Valerie Mignon 
Author-X-Name-First: Valerie 
Author-X-Name-Last: Mignon 
Author-Name: Anne Peguin-Feissolle 
Author-X-Name-First: Anne 
Author-X-Name-Last: Peguin-Feissolle 
Title: Persistent misalignments of the European exchange rates: some evidence from non-linear cointegration 
Abstract:
  The asymmetric and persistent adjustment of the European real exchange
 rates is investigated using the framework of non-linear cointegration. The
 episodes of slow mean-reversion dynamics over the period from 1979 to 1999
 are explained. A test of unit root against STAR cointegration is proposed
 and some complete estimations and stochastic simulations of ESTAR models
 are presented. The presence of effective non-linear adjustment during the
 moving of the currencies to their long-run fundamental equilibrium
 exchange rate value is discussed. 
Journal: Applied Economics 
Pages: 203-229 
Issue: 2 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500390262 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390262 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:203-229




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Sussmuth 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Sussmuth 
Title: Beauty in the classroom: are German students less blinded? Putative pedagogical productivity due to professors' pulchritude: peculiar or pervasive? 
Abstract:
  Given that instructional student ratings measure differences in
 pedagogical productivity, this study examines whether perceived
 attractiveness of German university teachers impact on these differences.
 Apart from some refinements and adjustments to idiosyncracies of the
 German system of higher learning, the quantitative analysis widely follows
 the strategy of the seminal work by Hamermesh and Parker (2005), based on
 US data. In comparison to findings for the USA, perceived attractiveness
 of teachers is found to have, if at all, only a weakly significant and
 quantitatively less important impact on the evaluation outcomes. 
Journal: Applied Economics 
Pages: 231-238 
Issue: 2 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500390296 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390296 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:231-238




Template-Type: ReDIF-Article 1.0
Author-Name: Constantino Cronemberger Mendes 
Author-X-Name-First: Constantino Cronemberger 
Author-X-Name-Last: Mendes 
Author-Name: Maria da Conceicao Sampaio de Sousa 
Author-X-Name-First: Maria da Conceicao Sampaio 
Author-X-Name-Last: de Sousa 
Title: Demand for locally provided public services within the median voter's framework: the case of the Brazilian municipalities 
Abstract:
  In this paper we estimated the demand for local public spending for the
 Brazilian municipalities within a median voter's framework. The rationale
 for applying that framework came from the fact that in federal systems
 voters' preferences are more likely to be reflected at the local level as
 the consumers of public services have a better knowledge of the benefits
 and costs of the local public expenditures. Results obtained are
 consistent with the theoretical background thus suggesting that this
 hypothesis might be useful to describe the demand for local public goods
 in Brazil. In particular, the use of quantile regression permitted us to
 investigate the impacts of the conditioning variables on local public
 expenses across different expenditures classes thus allowing for
 heterogeneity across municipalities. Our results also suggest that the
 impact of the city size on the quality of club goods shows crowding
 effects as &#x3b3; is between zero and one. However, in the estimated
 models, marginal congestion slightly decreases with expenditure. This is a
 rather surprising result as one is tempted to conclude that the congestion
 effect should be higher on big cities. Yet, a more careful look shows the
 drawbacks of such an interpretation. The indivisibilities preclude the
 provision of certain services in small towns, concentrating their
 provision on larger cities. Hence, the higher expenditures of those big
 cities reflect not only a crowding cost but also the fact that these towns
 offer a wide range of services when compared to the small ones. 
Journal: Applied Economics 
Pages: 239-251 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500215378 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215378 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:239-251




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Richardson 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Richardson 
Author-Name: Stuart Peacock 
Author-X-Name-First: Stuart 
Author-X-Name-Last: Peacock 
Author-Name: Duncan Mortimer 
Author-X-Name-First: Duncan 
Author-X-Name-Last: Mortimer 
Title: Does an increase in the doctor supply reduce medical fees? An econometric analysis of medical fees across Australia 
Abstract:
  One of the clearest predictions of economic theory is that an autonomous
 increase in supply will depress the price which equilibriates supply and
 demand. However, US evidence with respect to medical fees has been
 perverse: higher fees have been observed in areas with more doctors even
 after standardizing for other relevant variables. This has resulted in two
 broad responses. Some have invoked the (once) controversial theory of
 supplier-induced demand to account for the anomaly. Others have suggested
 ingenious ways of explaining the results within the orthodox framework in
 which supply and demand are independent. There has been almost no analysis
 of price formulation in the Australian medical market. It has been
 generally assumed that the usual supply-demand relationships apply in the
 Australian context, and that perversity in the US is attributable to
 US-specific market characteristics. The present article examines the
 setting of GP fees in the Australian market using 1995 cross-section data
 from statistical sub-divisions. The implications of the results for
 workforce planning and for the analysis of consumer benefits are
 discussed. 
Journal: Applied Economics 
Pages: 253-266 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500218513 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218513 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:253-266




Template-Type: ReDIF-Article 1.0
Author-Name: John Goddard 
Author-X-Name-First: John 
Author-X-Name-Last: Goddard 
Author-Name: David McMillan 
Author-X-Name-First: David 
Author-X-Name-Last: McMillan 
Author-Name: John Wilson 
Author-X-Name-First: John 
Author-X-Name-Last: Wilson 
Title: Do firm sizes and profit rates converge? Evidence on Gibrat's Law and the persistence of profits in the long run 
Abstract:
  Three panel unit root tests are applied to a 31-year firm size, growth
 and profit rate data set for 96 large, quoted UK firms. All tests reject
 the unit root null for log size if the Augmented Dickey Fuller
 autoregressions exclude a linear time trend. If a linear trend is
 included, the results are more ambiguous and appear to differ
 systematically between tests. The view that firm growth is either random
 or near-random does not receive unequivocal support in all tests. There is
 however strong and consistent evidence of mean-reversion in profit rates. 
Journal: Applied Economics 
Pages: 267-278 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367955 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367955 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:267-278




Template-Type: ReDIF-Article 1.0
Author-Name: Bryan Boulier 
Author-X-Name-First: Bryan 
Author-X-Name-Last: Boulier 
Author-Name: H. O. Stekler 
Author-X-Name-First: H. O. 
Author-X-Name-Last: Stekler 
Author-Name: Sarah Amundson 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Amundson 
Title: Testing the efficiency of the National Football League betting market 
Abstract:
  This study presents three tests of efficiency of the NFL betting market
 for the years 1994-2000. First, it tests for weak-form informational
 efficiency of the betting market. Then it examines whether the market
 incorporates objective information such as power scores and stadium
 characteristics that might be useful for predicting game outcomes.
 Finally, it determines whether alternative betting strategies would have
 yielded a profit. Although there is some indication that differences in
 the playing surfaces of home and visiting teams were not fully reflected
 in the betting lines, it is found that there is no conclusive evidence to
 suggest that the market was inefficient over the period examined. 
Journal: Applied Economics 
Pages: 279-284 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500368904 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368904 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:279-284




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Seema Narayan 
Author-X-Name-First: Seema 
Author-X-Name-Last: Narayan 
Title: Government revenue and government expenditure nexus: evidence from developing countries 
Abstract:
  The relationship between government revenue and government expenditure
 has attracted a lot of interest given its policy relevance, particularly
 with respect to budget deficits. The goal of this paper is to investigate
 evidence for causality between government revenue and government
 expenditure within a multivariate framework by modelling them together
 with gross domestic product for 12 developing countries. Our application
 of the Toda and Yamamoto (1995) test for Granger causality reveals support
 for the tax-and-spend hypothesis for Mauritius, El Salvador, Haiti, Chile
 and Venezuela. For Haiti, there is evidence for the spend-and-tax
 hypothesis, while for Peru, South Africa, Guatemala, Uruguay and Ecuador
 there is evidence of neutrality. 
Journal: Applied Economics 
Pages: 285-291 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500369209 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369209 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:285-291




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Moore 
Author-X-Name-First: Simon 
Author-X-Name-Last: Moore 
Author-Name: Jonathan Shepherd 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Shepherd 
Title: The cost of fear: shadow pricing the intangible costs of crime 
Abstract:
  This study employs a cross sectional crime survey of UK residents to
 estimate the shadow price of victimization with respect to fear of crime.
 Particular attention is paid to the relationship between household income
 and fear of crime and potential mediating variables such as neighbourhood
 deprivation and neighbourhood crime rates. A robust relationship between
 fear of crime and income is demonstrated having controlled for deprivation
 and crime rate. Further analyses suggest that a substantial increase in
 household income is required to offset the threat of physical violence.
 However, actual victimization (burglary, physical violence and car crime)
 do not significantly influence fear of crime. 
Journal: Applied Economics 
Pages: 293-300 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367781 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367781 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:293-300




Template-Type: ReDIF-Article 1.0
Author-Name: Kajal Mukhopadhyay 
Author-X-Name-First: Kajal 
Author-X-Name-Last: Mukhopadhyay 
Author-Name: Lawrence Marsh 
Author-X-Name-First: Lawrence 
Author-X-Name-Last: Marsh 
Title: An approach to nonparametric smoothing techniques for regressions with discrete data 
Abstract:
  This paper proposes nonparametric regression estimation techniques for
 small samples in situations where the dependent variable involves count
 data. Often the form of a kernel will not matter asymptotically. However,
 in small samples the kernel structure may play a more important role in
 approximating the small sample distribution especially for discrete random
 variables. In particular for count data we introduce a Poisson kernel
 regression estimator and a binomial kernel regression estimator. These new
 regression methods are applied to coal mine wildcat strike data. We use
 cross validation to evaluate out-of-sample performance. 
Journal: Applied Economics 
Pages: 301-305 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500368581 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368581 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:301-305




Template-Type: ReDIF-Article 1.0
Author-Name: Kian Teng Kwek 
Author-X-Name-First: Kian Teng 
Author-X-Name-Last: Kwek 
Author-Name: Kuan Nee Koay 
Author-X-Name-First: Kuan Nee 
Author-X-Name-Last: Koay 
Title: Exchange rate volatility and volatility asymmetries: an application to finding a natural dollar currency 
Abstract:
  Based on six daily spot nominal exchange rate returns denominated in the
 US dollar, viz-a-viz UK Pound, Japanese Yen, Swiss Franc, Canadian dollar,
 Australian dollar and Singapore dollar, this paper tries to find a natural
 Dollar currency by comparing the linear/nonlinear dynamics in the
 conditional variance of these bilateral exchange rate returns (time
 varying volatility vs. asymmetries). The characteristics of the
 unconditional distribution of the FX returns justified the use of the
 GARCH class of models of conditional volatility. Strong time varying
 symmetric effects are apparent in all the series examined, especially in
 the Australian dollar. Further asymmetric effects in unexpected
 appreciations and depreciations of currencies are examined based on the
 GJR model, the ST GARCH model and the ANST-GARCH model (which encompasses
 several asymmetric models). The estimates of asymmetric models show weak
 evidence of asymmetries in most of the currencies, except in the Japanese
 Yen and UK Pound. Further findings show that the Japanese Yen is a
 non-natural Dollar country. However, there may possibly exist some mild
 deterministic asymmetric effect in the UK Pound. Based on the symmetric
 GARCH model, a trader/investor may consider Australian dollar as the
 relatively most 'likable' currency, i.e. relatively the least volatile
 currency and relatively the most synchronized with the US dollar. 
Journal: Applied Economics 
Pages: 307-323 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500368672 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368672 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:307-323




Template-Type: ReDIF-Article 1.0
Author-Name: Sara Lemos 
Author-X-Name-First: Sara 
Author-X-Name-Last: Lemos 
Title: Anticipated effects of the minimum wage on prices 
Abstract:
  There is little empirical evidence on the effect of minimum wage
 increases on prices, particularly for developing countries. This paper
 provides estimates of this effect using monthly Brazilian household and
 firm data over 18 years. As minimum wage increases in Brazil sare large
 and frequent, they have a potentially important impact on aggregate
 prices. Rational agents, in anticipation of such price effects, may take
 minimum wage increases as a signal for future price and wage bargains. We
 find that the minimum wage raises overall prices not only on the month of
 the increase, but also in the two months prior to the change as well as
 after the change. 
Journal: Applied Economics 
Pages: 325-337 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500368722 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368722 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:325-337




Template-Type: ReDIF-Article 1.0
Author-Name: Shujie Yao 
Author-X-Name-First: Shujie 
Author-X-Name-Last: Yao 
Title: On economic growth, FDI and exports in China 
Abstract:
  China has achieved high economic growth for a prolonged period of time.
 Academic researchers have tried alternative explanations for this
 miraculous growth. This study focuses on the effect of exports and foreign
 direct investments (FDI) on economic performance, using a large panel data
 set encompassing 28 Chinese provinces over the period 1978-2000. Adopting
 Pedroni's panel unit root test and Arellano and Bond's dynamic panel data
 estimating technique, it is found that both exports and FDI have a strong
 and positive effect on economic growth. The results suggest that two
 development policies adopted in China are useful for other developing and
 transitional economies: export promotion and adoption of world technology
 and business practices. 
Journal: Applied Economics 
Pages: 339-351 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500368730 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:339-351




Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Aquino 
Author-X-Name-First: Rodolfo 
Author-X-Name-Last: Aquino 
Title: A variance equality test of the ICAPM on Philippine stocks: post-Asian financial crisis period 
Abstract:
  The study examines whether Fama's discrete version of Merton's
 intertemporal CAPM (ICAPM) can explain the negative market risk premium
 and the cross-sectional variability of Philippine stock returns after the
 onset of the Asian financial crisis in July 1997. The change in foreign
 exchange rate, in addition to the change in market risk premium, is used
 as a state variable of hedging concern to investors. The relationship of
 Fama's multifactor minimum-variance (MMV) portfolio to the Markowitz
 minimum-variance (MV) portfolio is characterized in terms of the equality
 of the return variances for the same expected return. A test due to Basak
 et al. (2002) is then used to verify the equality of the return variance
 of a derived tangency portfolio along the MMV frontier to an MV portfolio
 with the same sample mean return. The results do not reject the ICAPM
 during the period covered by the study. Thus, the model provides a
 plausible explanation both for the cross-sectional variability of stock
 returns and the negative market risk premium within the framework of
 mean-variance optimizing investors. 
Journal: Applied Economics 
Pages: 353-362 
Issue: 3 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500368854 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368854 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:353-362




Template-Type: ReDIF-Article 1.0
Author-Name: Scott Blunk 
Author-X-Name-First: Scott 
Author-X-Name-Last: Blunk 
Author-Name: David Clark 
Author-X-Name-First: David 
Author-X-Name-Last: Clark 
Author-Name: James McGibany 
Author-X-Name-First: James 
Author-X-Name-Last: McGibany 
Title: Evaluating the long-run impacts of the 9/11 terrorist attacks on US domestic airline travel 
Abstract:
  Although the US airline industry began 2001 with 24 consecutive
 profitable quarters, including net profits in 2000 totaling $7.9 billion,
 the impact of the 9/11 event on the industry was substantial. Whereas the
 recession that began in early 2001 signaled the end of profitability, the
 9/11 terrorist attacks pushed the industry into financial crisis after air
 travel dropped 20% over the September-December 2001 period compared to the
 same period in 2000. Given the decline in domestic air travel, an
 important question is whether the detrimental impact of the attacks was
 temporary or permanent. That is, did airline travel return to the trend
 that existed prior to the terrorist attacks? There are theoretical reasons
 to the believe that it would not. Economists have long viewed travel-mode
 choices as the outcome of a comparison of opportunity costs and benefits.
 Thus, anything that permanently raises the opportunity cost of travel,
 holding benefits constant, should reduce the level of travel volume. To
 determine whether air travel was permanently reduced, we use econometric
 and time-series forecasting models to generate a counter-factual forecast
 of air travel volume in the absence of the terrorist attacks. These
 dynamic forecasts are compared to actual air travel levels to determine
 the impact of the terrorist attacks. The findings suggest that domestic
 air travel did not return to the levels that would have existed in the
 absence of the attack. 
Journal: Applied Economics 
Pages: 363-370 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367930 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367930 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:363-370




Template-Type: ReDIF-Article 1.0
Author-Name: Neil Powe 
Author-X-Name-First: Neil 
Author-X-Name-Last: Powe 
Author-Name: Kenneth Willis 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Willis 
Author-Name: Guy Garrod 
Author-X-Name-First: Guy 
Author-X-Name-Last: Garrod 
Title: Difficulties in valuing street light improvement: trust, surprise and bound effects 
Abstract:
  Previous empirical research has demonstrated an internal inconsistency
 that may occur in response strategies between the first and second
 valuations made to closed-ended contingent valuation questions. One
 possible explanation for this bound effect is the surprise of being asked
 the second valuation question, which may be enhanced where there is a lack
 of trust. This paper considers the use of closed-ended contingent
 valuation to estimate non-market benefits for an improved street lighting
 scheme where there is a lack of trust in the agency responsible for
 provision. The results provide confirmation that surprise is an important
 determinant of bound effects; however, efforts to reduce such bias using a
 prior statement of the bid range were found to be ineffective in
 increasing trust and reducing surprise. Given the importance of this area
 of research, directions for future research are considered. 
Journal: Applied Economics 
Pages: 371-381 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500369274 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369274 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:371-381




Template-Type: ReDIF-Article 1.0
Author-Name: S. Gaudin 
Author-X-Name-First: S. 
Author-X-Name-Last: Gaudin 
Title: Effect of price information on residential water demand 
Abstract:
  Microeconomic theory predicts that people decrease consumption when price
 increases, the magnitude of the effect depending on price elasticity. The
 law of demand, however, implicitly assumes that consumers know prices, an
 assumption that is not always satisfied in markets with ex post billing.
 When prices are not transparent, elasticity estimates are potentially
 lower than their full information potential. Evidence of low price
 elasticity abounds in residential water demand studies, limiting the
 effectiveness and desirability of using price signals as a conservation
 tool. It is hypothesized that resident's sluggish response to price is
 partly due to the absence of price information on water bills. Differences
 in the informational content of bills are documented for the first time on
 the basis of sample bills collected from 383 utilities across the USA. A
 standard aggregate water demand model is augmented with qualitative
 variables describing differences in billing information, allowing such
 variables to affect the intensity with which consumers respond to price
 signals. No evidence is found that non-price information items affect
 price elasticity but there is a statistically significant effect in the
 case of price-related information; in our sample, price elasticity
 increases by 30% or more when price information is given on the bill. 
Journal: Applied Economics 
Pages: 383-393 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500397499 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397499 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:383-393




Template-Type: ReDIF-Article 1.0
Author-Name: Jaesun Noh 
Author-X-Name-First: Jaesun 
Author-X-Name-Last: Noh 
Author-Name: Tae-Hwan Kim 
Author-X-Name-First: Tae-Hwan 
Author-X-Name-Last: Kim 
Title: Forecasting volatility of futures market: the S&P 500 and FTSE 100 futures using high frequency returns and implied volatility 
Abstract:
  We show that historical volatility from high frequency returns
 outperforms implied volatility when standardized returns by historical
 volatility tends to be normally distributed. For the FTSE 100 futures, we
 find that historical volatility using high frequency returns outperforms
 implied volatility in forecasting future volatility. However, we find that
 implied volatility outperforms historical volatility in forecasting future
 volatility for the S&P 500 futures. The results also indicate that
 historical volatility using high frequency returns could be an unbiased
 forecast for the FTSE 100 futures. 
Journal: Applied Economics 
Pages: 395-413 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500391229 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391229 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:395-413




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Author-Name: Manuchehr Irandoust 
Author-X-Name-First: Manuchehr 
Author-X-Name-Last: Irandoust 
Title: The response of industry employment to exchange rate shocks: evidence from panel cointegration 
Abstract:
  This study investigates the long-run relationship between employment and
 exchange rate shocks at the industry level for France. Using panel unit
 roots and panel cointegration analysis, it is found that the French
 industries are quite sensitive to exchange rate changes. The estimated
 long-run elasticities reveal that exchange rates do influence industry
 employment in the expected way, that is, real appreciations are associated
 with decline in manufacturing for all industries in the sample. 
Journal: Applied Economics 
Pages: 415-421 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392243 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392243 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:415-421




Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Henriquez Hofter 
Author-X-Name-First: Ricardo Henriquez 
Author-X-Name-Last: Hofter 
Title: Private health insurance and utilization of health services in Chile 
Abstract:
  This paper analyses the choice of private health insurance in Chile and
 how this relates to the utilization of health services. The results show
 the importance of some demographics on the insurance decision,
 particularly age, gender and marital status. Socio-economic factors such
 as education, income, employment status and zone of residence, all
 influence the probability of purchasing private insurance. The relevance
 of these determinants is confirmed using a simulation analysis with four
 representative decision-makers. This simulation also provides evidence of
 a positive selection into private insurance, although this would be driven
 by the different criteria used to set premiums under private and public
 insurance schemes. The potential linkage between utilization of health
 services and private health insurance is examined using a simultaneous
 two-equation framework. Two measures of utilization are estimated:
 outpatient health services, and length of stay in hospital. A number of
 explanatory variables, selected on the basis of previous findings, were
 used to estimate these two dependent variables, and self-assessed health
 status and long-term activity limitations emerge as important factors in
 explaining utilization. Private health insurance cover positively affects
 only one of the two measures of utilization: outpatient health services.
 This provides evidence of the moral hazard effect pointed out earlier by
 Arrow (1963). 
Journal: Applied Economics 
Pages: 423-439 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:423-439




Template-Type: ReDIF-Article 1.0
Author-Name: Ayfer Karayel 
Author-X-Name-First: Ayfer 
Author-X-Name-Last: Karayel 
Title: The intragenerationally redistributive effects of the retirement insurance scheme in Turkey before and after the 1999 reform 
Abstract:
  The paper analyses the intragenerational redistribution generated by the
 retirement insurance scheme in Turkey before and after the 1999 reform.
 Previous research shows that when a pension scheme's contribution and
 benefit schedules are proportional, the existence of an intergenerational
 redistribution is a precondition for the existence of an intragenerational
 redistribution, but that, otherwise, redistribution within a generation is
 possible without intergenerational redistribution. The main finding of
 this work is that the existence of the intergenerational redistribution is
 still a precondition for the old pension scheme despite its
 disproportional benefit schedule. Under the assumptions used, both of the
 schemes redistribute from high-wage earners to low-wage earners among
 women, but redistribute differently among men. Among men, the old scheme
 generates indeterminable transfers, although the new scheme redistributes
 from low-wage earners to high wage-earners. The analysis takes into
 account a hypothetical distribution of wages. 
Journal: Applied Economics 
Pages: 441-448 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500393001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500393001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:441-448




Template-Type: ReDIF-Article 1.0
Author-Name: Ho-Chuan Huang 
Author-X-Name-First: Ho-Chuan 
Author-X-Name-Last: Huang 
Author-Name: Shu-Chin Lin 
Author-X-Name-First: Shu-Chin 
Author-X-Name-Last: Lin 
Title: Time-varying discrete monetary policy reaction functions 
Abstract:
  A novel dynamic ordered probit model with time-varying parameters is
 proposed to estimate a monetary policy reaction function with
 narrative-based monetary indicators. The estimation and inference are
 carried out using the Bayesian simulation-based approach. Empirically,
 these are the following findings. First, there is strong evidence in
 support that the Central Bank in Taiwan responds counter-cyclically to
 inflation but weaker, if any, evidence to economic growth. Secondly, the
 persistence and consistence in policy-making of the monetary authority is
 confirmed by the significance of the positive autoregressive coefficient.
 Although not all, the estimates of the TVP-DOP model provide, at least,
 partial support of time-varying parameters. Finally, the results indicate
 that studies of the discrete monetary policy reaction functions without
 explicitly considering the possible dynamics inherent in the time series
 data and time-variations in model parameters may be inappropriate, if not
 incorrect. 
Journal: Applied Economics 
Pages: 449-464 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500395386 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500395386 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:449-464




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Crespo Cuaresma 
Author-X-Name-First: Jesus Crespo 
Author-X-Name-Last: Cuaresma 
Author-Name: Adelina Gschwandtner 
Author-X-Name-First: Adelina 
Author-X-Name-Last: Gschwandtner 
Title: The competitive environment hypothesis revisited: non-linearity, nonstationarity and profit persistence 
Abstract:
  Much empirical literature dealing with the competitive environment
 hypothesis tends to find nonstationary behaviour and very high persistence
 in time series of company profits. Profit time series is modelled using a
 simple threshold autoregressive model that allows for nonstationary
 behaviour over subsamples. Using a new dataset consisting of profits for
 more than 150 US companies over a time period of 50 years, statistical
 evidence is presented that the high persistence observed in profits when
 using linear autoregressive models is often due to the misspecification of
 the data generating process. 
Journal: Applied Economics 
Pages: 465-472 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500390312 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390312 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:465-472




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou 
Author-X-Name-First: Chris 
Author-X-Name-Last: Sakellariou 
Title: Education policy reform, local average treatment effect and returns to schooling from instrumental variables in the Philippines 
Abstract:
  A nationally representative dataset from the Philippines is used to
 derive returns to schooling estimates from instrumental variables,
 utilizing a supply-side intervention in the education market capable of
 generating significant changes in schooling. These estimates apply to a
 subgroup of, mainly, liquidity constrained individuals, in the spirit of
 the Local Average Treatment Effect (LATE) literature. Returns to schooling
 estimates which apply to a subgroup of individuals affected by policy
 intervention may be more interesting from a policy perspective than the
 return to the 'average' individual. The findings are consistent with other
 recent evidence suggesting that the causal effect of education, at least
 for certain subgroups of individuals, is as big or bigger than what is
 suggested by OLS estimates. 
Journal: Applied Economics 
Pages: 473-481 
Issue: 4 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367864 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367864 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:473-481




Template-Type: ReDIF-Article 1.0
Author-Name: David Walker 
Author-X-Name-First: David 
Author-X-Name-Last: Walker 
Title: Predicting presidential election results 
Abstract:
  The 2004 US presidential election proved again how difficult it is to
 predict vote shares on the basis of polls. Midday media exit polls
 suggested that Senator Kerry would become the 44th President. Political
 scientists and econometricians, led by Ray Fair, have promulgated
 theoretical arguments and empirical results to predict US presidential
 elections, using macro-economic data and political factors. Respecifying
 Fair's war variable to include Korea and Vietnam and removing serial
 correlation improves his election forecasting without public opinion poll
 variables. This generalized Fair model predicts President Bush's two-party
 vote share would be 52.3 percent, well below predictions by Fair and
 prestigious political scientists. 
Journal: Applied Economics 
Pages: 483-490 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500391385 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391385 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:483-490




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brent 
Title: Does female education prevent the spread of HIV-AIDS in Sub-Saharan Africa? 
Abstract:
  Cross-section estimates of 31 countries for the year 2000 are used to
 examine the effect of the level of female education, and the gap between
 male and female levels, on the prevalence of HIV/AIDS in Sub-Saharan
 Africa. Many standard types of education are analysed and a non-standard
 category involving under- and over-aged primary school enrollees are
 identified. Although it is found that female education is positively
 related to country infection rates, there is scope to reduce infection
 rates by substituting one type of education for another. It is estimated
 that female infection rates peak within 15-17 years of the first case
 reported. 
Journal: Applied Economics 
Pages: 491-503 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392045 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392045 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:491-503




Template-Type: ReDIF-Article 1.0
Author-Name: Claire Champenois 
Author-X-Name-First: Claire 
Author-X-Name-Last: Champenois 
Author-Name: Dirk Engel 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Engel 
Author-Name: Oliver Heneric 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Heneric 
Title: What kind of German biotechnology start-ups do venture capital companies and corporate investors prefer for equity investments? 
Abstract:
  The paper deals with the role played by private equity investors (venture
 capital companies and corporate investors) in the emergence of a new
 biotechnology industry in Germany in the second half of the 90's. Our
 analysis takes into account the different business models and business
 fields to be found in the biotechnology industry. Based on theoretical
 arguments, a great relevance of venture capital companies (VCC) in
 financing young innovative biotechnology firms developing health care
 applications and technology platforms is expected, whereas corporate
 investors like incumbents in pharmaceutical and chemical industries may
 play a more important role in financing supplier companies. The empirical
 analysis is based on 378 biotechnology firms, founded between 1995 and
 1999. Descriptive results emphasize a crucial importance of the access to
 venture capital provided by venture capital companies: VCC are venturing
 partner of 42 percent of healthcare developer in their early stage.
 Opposite to that, corporate investors are marginally involved as venturing
 partner of high risk projects. The observed pattern also holds in a
 multivariate analysis which controls for some core variables as
 determinants of equity funding. The result for corporate investors differs
 from observations in the US for collaborative arrangements. Therefore,
 country specific settings may matter. 
Journal: Applied Economics 
Pages: 505-518 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500391146 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:505-518




Template-Type: ReDIF-Article 1.0
Author-Name: Cinthia Cabral da Costa 
Author-X-Name-First: Cinthia Cabral da 
Author-X-Name-Last: Costa 
Author-Name: Heloisa Lee Burnquist 
Author-X-Name-First: Heloisa Lee 
Author-X-Name-Last: Burnquist 
Author-Name: Joaquim Jose Martins Guilhoto 
Author-X-Name-First: Joaquim Jose Martins 
Author-X-Name-Last: Guilhoto 
Title: Relations of the regional Brazilian cane agro-industry with the national economy: analysis applied to the Centre-South and North-Northeast 
Abstract:
  Cane, sugar and ethanol production in Brazil has been divided between two
 major production regions, the Centre-South (CS) and the North-Northeast
 (NNE), which present very different productivity, and henceforth
 production costs. The CS average productivity is more than 72 tonnes of
 cane per hectare, while average productivity in the NNE is 49 tonnes per
 hectare. The objective of the study was to establish interrelations
 between the cane agro-industry and other regional sectors and with the
 overall Brazilian economy. This framework was used to compare a demand
 impact upon regional cane production upon the regional and the overall
 Brazilian economy. An interregional input-output matrix was used to
 characterize how regional demand impacts on both regional and overall
 Brazilian economies. Rasmussen-Hirschman indexes, together with a pure
 linkage index were used for the analysis. In addition, production
 multipliers, with and without considering endogenous family consumption
 were estimated. The results showed that a positive demand impact upon the
 cane agro-industry produces a greater impact upon the NNE compared to the
 CS, considering income effects, indicating that cane production is more
 important for the NNE than for the CS. These results can be useful to
 establish priorities for development policies for the country. 
Journal: Applied Economics 
Pages: 519-531 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500391039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:519-531




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Falk 
Author-X-Name-First: Martin 
Author-X-Name-Last: Falk 
Title: What drives business Research and Development (R&D) intensity across Organisation for Economic Co-operation and Development (OECD) countries? 
Abstract:
  This paper empirically investigates the potential determinants of
 business-sector R&D intensity using a panel of OECD (countries for the
 period of 1975-2002 with data measured as five-year averages). Estimates
 using a system GMM estimator controlling for endogeneity show a high
 degree of persistence in business-sector R&D expenditures. Tax incentives
 for R&D have a significant and positive impact on business R&D spending
 regardless of the specification and estimation techniques. Furthermore, we
 find that expenditures for R&D performed by universities are significantly
 positively related to business enterprise sector expenditures on R&D
 indicating that public sector R&D and private R&D are complements. Direct
 R&D subsidies and the high-tech export share are significantly positively
 related to business-sector R&D intensity, but these effects are only
 significant using the first-differenced GMM estimator. The static fixed
 effects results show that countries characterised by strong patent rights
 appear to have higher R&D intensities, but this effect is no longer
 significant in the dynamic panel data model. 
Journal: Applied Economics 
Pages: 533-547 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500391187 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391187 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:533-547




Template-Type: ReDIF-Article 1.0
Author-Name: Edinaldo Tebaldi 
Author-X-Name-First: Edinaldo 
Author-X-Name-Last: Tebaldi 
Author-Name: Bruce Elmslie 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Elmslie 
Title: Sexual orientation and labour supply 
Abstract:
  This is the first study of the effects of sexual orientation on labour
 supply. After discussing various reasons to expect that labour supply
 could differ by sexual orientation, the 2001 Current Population Survey is
 used to test for differences in both labour supply and labour market
 status (part-time, full-time, and not employed). It is found that gay men
 supply less labour than married and unmarried heterosexual men. With
 regard to women, it is found that lesbians supply more labour and are more
 likely to be employed full-time than either married or unmarried
 heterosexual women. Extensive controls are used and links to the
 discrimination literature are found. 
Journal: Applied Economics 
Pages: 549-562 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500293789 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:549-562




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Female labour force participation, fertility and infant mortality in Australia: some empirical evidence from Granger causality tests 
Abstract:
  This study applies Granger causality tests within a multivariate error
 correction framework to examine the relationship between female
 participation rates, infant mortality rates and fertility rates for
 Australia using annual data from 1960 to 2000. Decomposition of variance
 and impulse response functions are also considered. The main findings are
 twofold. First, in the short run there is unidirectional Granger causality
 running from the fertility rate to female labour force participation and
 from the infant mortality rate to female labour force participation while
 there is neutrality between the fertility rate and infant mortality rate.
 Second, in the long run both the fertility rate and infant mortality rate
 Granger cause female labour participation. 
Journal: Applied Economics 
Pages: 563-572 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500118838 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:563-572




Template-Type: ReDIF-Article 1.0
Author-Name: Nigel Key 
Author-X-Name-First: Nigel 
Author-X-Name-Last: Key 
Author-Name: Michael Roberts 
Author-X-Name-First: Michael 
Author-X-Name-Last: Roberts 
Author-Name: Erik O'Donoghue 
Author-X-Name-First: Erik 
Author-X-Name-Last: O'Donoghue 
Title: Risk and farm operator labour supply 
Abstract:
  This study uses a large increase in US Federal crop insurance subsidies
 as a natural experiment to identify the importance of risk for farm
 operator labour supply. Subsidy increases induced greater crop insurance
 coverage, which in turn reduced farmers' financial risks. Crop insurance
 participation data are merged with farm-level Census of Agriculture data
 from 1992 and 1997 to compare how individuals' off-farm labour supply
 changed in response to the policy-induced change in insurance coverage.
 The empirical approach controls for unobserved heterogeneity and accounts
 for the censored nature of the data. It is found that greater insurance
 coverage reduces the off-farm labour supply of operators who produced at
 least $100 000 of output, and increased the labour supply of small-farm
 operators who produced less than $25 000 of output. 
Journal: Applied Economics 
Pages: 573-586 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500369043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:573-586




Template-Type: ReDIF-Article 1.0
Author-Name: Kaili Shen 
Author-X-Name-First: Kaili 
Author-X-Name-Last: Shen 
Author-Name: David Giles 
Author-X-Name-First: David 
Author-X-Name-Last: Giles 
Title: Rational exuberance at the mall: addiction to carrying a credit card balance 
Abstract:
  The Becker-Murphy model of rational addiction is tested with New Zealand
 credit card debt data. The results clearly favour the rational addiction
 model over the myopic, backward-looking model. The estimated short-run and
 long-run price elasticities are -0.58 and -2.32 respectively, and the
 estimated rate of time-preference is 6.7% per quarter. 
Journal: Applied Economics 
Pages: 587-592 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500369167 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369167 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:587-592




Template-Type: ReDIF-Article 1.0
Author-Name: Titus Awokuse 
Author-X-Name-First: Titus 
Author-X-Name-Last: Awokuse 
Title: Export-led growth and the Japanese economy: evidence from VAR and directed acyclic graphs 
Abstract:
  This paper explores the causal relationship between real exports and GDP
 growth in Japan using two recently developed causal modelling approaches.
 Using Japanese time series, the paper employed the augmented VAR
 methodology developed by Toda and Yamamoto (1995) to test for Granger
 non-causality. Then, a more recently developed technique of directed
 acyclic graphs (DAG) was also used in providing over-identifying
 restrictions on the innovations from a vector autoregression (VAR) model.
 In contrast to prior analyses, the application of DAG techniques allows
 for the examination of both contemporaneous and dynamic causal structure
 of the exports-productivity nexus. The empirical results reveal that the
 causal path between exports and GDP growth in Japan is bi-directional.
 Furthermore, other variables such as capital and foreign output are also
 significant determinants of productivity growth in Japan. 
Journal: Applied Economics 
Pages: 593-602 
Issue: 5 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600619594 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600619594 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:593-602




Template-Type: ReDIF-Article 1.0
Author-Name: Roshni Mangalore 
Author-X-Name-First: Roshni 
Author-X-Name-Last: Mangalore 
Title: Income, health and health care utilization in the UK 
Abstract:
  The aim of this paper is to analyse the links between income, health and
 health care utilisation behaviour using longitudinal data from the British
 Household Panel Survey. The emphasis is to frame the analysis as a social
 phenomenon, so that the dynamics of individual health production in the
 social context can be understood. The study estimates the relationships
 between income, health and health care utilisation with lag effects. The
 empirical results support the hypothesis that these three variables
 influence each other with lag effects and that many social and economic
 factors influence an individual's probability of having a health problem
 or making use of health care facilities, even when such facilities are
 free at the point of use. 
Journal: Applied Economics 
Pages: 605-617 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500397192 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397192 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:605-617




Template-Type: ReDIF-Article 1.0
Author-Name: Mats Hammarstedt 
Author-X-Name-First: Mats 
Author-X-Name-Last: Hammarstedt 
Title: The predicted earnings differential and immigrant self-employment in Sweden 
Abstract:
  This paper investigates the influence of the predicted earnings
 differential between self-employment and wage-employment on
 self-employment propensities among immigrants in Sweden. Immigrants from
 non-European countries have essentially lower earnings from
 self-employment and wage-employment than immigrants from European
 countries. It is found that the difference between an immigrant's
 predicted earnings in self- and wage-employment has a strong influence on
 an immigrant's self-employment decision. A one unit increase in the log
 differential between self-employment and wage-employment earnings increase
 the self-employment rate among immigrants by about 5 percentage points,
 suggesting that discriminatory wages in the wage-employment sector may
 push immigrants towards self-employment. 
Journal: Applied Economics 
Pages: 619-630 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500397069 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397069 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:619-630




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Jarrett 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Jarrett 
Author-Name: Eric Kyper 
Author-X-Name-First: Eric 
Author-X-Name-Last: Kyper 
Title: Capital market efficiency and the predictability of daily returns 
Abstract:
  Studies of the weak form of the capital market efficiency theorem infer
 that there are no predictable properties of the time series of prices of
 traded securities on organized markets. We examine the weak form of the
 efficient markets hypothesis with respect to daily closing prices to
 indicate evidence that daily closing prices have predictable properties.
 Furthermore, this study of individual securities prices of traded
 securities on organized markets corroborates previous findings of studies
 of stock market indexes both in the United States and in other nations'
 bourses or stock exchanges. Often, these studies indicated that daily
 patterns are present in the times series of securities prices. The purpose
 of this paper is to clarify the existence of time series characteristics
 of daily stock prices of securities traded on organized exchanges. This
 study differs from previous studies where the focus was on index numbers
 of daily stock market prices rather than the actual prices of traded
 securities in the United States. Furthermore, this study is important
 because of the weak theory of market efficiency and its application to
 short-term forecasting of closing prices of traded securities. 
Journal: Applied Economics 
Pages: 631-636 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600581422 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600581422 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:631-636




Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Harrison 
Author-X-Name-First: Teresa 
Author-X-Name-Last: Harrison 
Title: Hospital mergers: who merges with whom? 
Abstract:
  Merger pairings are categorized based on the ownership status, teaching
 status, hospital size, caseload severity, and geographical distance of
 merging hospitals to determine the types of hospitals that tend to merge
 with each other. The results show that mergers between two non-teaching,
 nonprofit or for-profit hospitals occur more often, but that only
 ownership status, not teaching status, affects the propensity to merge
 after controlling for other merger pair characteristics. This paper also
 finds that hospitals are more likely to merge with a partner of similar
 size and close geographical proximity, but not necessarily the closest
 candidate. However, ownership status, not distance between hospitals, is
 the dominant determinant of merger pairs. 
Journal: Applied Economics 
Pages: 637-647 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500395360 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500395360 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:637-647




Template-Type: ReDIF-Article 1.0
Author-Name: Suwen Pan 
Author-X-Name-First: Suwen 
Author-X-Name-Last: Pan 
Author-Name: Helen Jensen 
Author-X-Name-First: Helen 
Author-X-Name-Last: Jensen 
Author-Name: Wayne Fuller 
Author-X-Name-First: Wayne 
Author-X-Name-Last: Fuller 
Author-Name: Samarendu Mohanty 
Author-X-Name-First: Samarendu 
Author-X-Name-Last: Mohanty 
Title: The effects of local labour market conditions on welfare programme participation 
Abstract:
  A fractional imputation method is applied to Iowa administrative data to
 deal with a problem of missing data. The effects of local labour market
 conditions and mobility of household heads on Family Investment Program
 (FIP) participation are evaluated. Results show that mobility increases
 the opportunity for employment and decreases the FIP participation rate
 for low-income families. An increase in predicted unemployment rates
 decreases labour force participation and increases programme
 participation; an increase in unpredicted unemployment rates increases
 labour force participation and decreases programme participation. Overall,
 the effects are relatively larger in rural areas than in nonrural areas in
 Iowa. 
Journal: Applied Economics 
Pages: 649-659 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500397259 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397259 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:649-659




Template-Type: ReDIF-Article 1.0
Author-Name: Kent Matthews 
Author-X-Name-First: Kent 
Author-X-Name-Last: Matthews 
Author-Name: Jonathan Shepherd 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Shepherd 
Author-Name: Vaseekaran Sivarajasingham 
Author-X-Name-First: Vaseekaran 
Author-X-Name-Last: Sivarajasingham 
Title: Violence-related injury and the price of beer in England and Wales 
Abstract:
  The paper examines the influence of the real price of beer on
 violence-related injuries across the economic regions in England and
 Wales. The data are monthly frequency of violent-injury collected from a
 stratified sample of 58 National Health Service Emergency Departments
 1995-2000. An econometric model based on economic, socio-demographic and
 environmental factors was estimated using panel techniques. It is shown
 that the rate of violence-related injury is negatively related to the real
 price of beer, as well as economic, sporting and socio-demographic
 factors. The principal conclusion of the paper is that the regional
 distribution of the incidence of violent injury is related to the regional
 distribution of the price of beer. The major policy conclusion is that
 increased alcohol prices would result in substantially fewer violent
 injuries and reduced demand on trauma services. 
Journal: Applied Economics 
Pages: 661-670 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500397341 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397341 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:661-670




Template-Type: ReDIF-Article 1.0
Author-Name: Qinghua Liu 
Author-X-Name-First: Qinghua 
Author-X-Name-Last: Liu 
Author-Name: C. Richard Shumway 
Author-X-Name-First: C. Richard 
Author-X-Name-Last: Shumway 
Title: Geographic aggregation and induced innovation in American agriculture 
Abstract:
  The induced innovation hypothesis is tested for the USA and western
 regions using cointegration procedures. An error correction model
 separates short-run and long-run effects of relative price changes. A
 significant difference in the elasticities of factor substitution along
 the isoquant and the innovation possibility curve implies induced
 innovation. The estimated results support the hypothesis for Washington,
 the Pacific Northwest, and the Western Region, but not for the nation.
 Corroborative tests of weak exogeneity fail to support the hypothesis in
 any of the geographic units. Changes in output level and research
 investment do not significantly bias agricultural technology in the USA. 
Journal: Applied Economics 
Pages: 671-682 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500397457 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397457 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:671-682




Template-Type: ReDIF-Article 1.0
Author-Name: H. Evren Damar 
Author-X-Name-First: H. Evren 
Author-X-Name-Last: Damar 
Title: The effects of shared ATM networks on the efficiency of Turkish banks 
Abstract:
  This study investigates whether forming shared ATM networks has yielded
 positive benefits for banks in Turkey by increasing their productive
 efficiency. Using a Data Envelopment Analysis (DEA) approach, pure
 technical and scale efficiency scores of Turkish banks are estimated and
 analysed for the period 2000-2003. The results suggest that although it is
 possible to realize positive effects through ATM sharing arrangements,
 there are multiple factors that determine which banks realize such
 benefits. The geographical distribution of shared ATMs between urban and
 rural markets and the level of competition between banks within urban
 areas are shown to be important determinants of differences in bank
 efficiency. This discrepancy between the gains associated with ATM sharing
 may have important implications concerning the adoption and sharing of new
 technology by banks in developing countries. 
Journal: Applied Economics 
Pages: 683-697 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500394264 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500394264 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:683-697




Template-Type: ReDIF-Article 1.0
Author-Name: Chao-Liang Chen 
Author-X-Name-First: Chao-Liang 
Author-X-Name-Last: Chen 
Title: The portable guarantee to exchange back an old defined benefit for a new defined contribution (DC) pension plan 
Abstract:
  As a defined contribution (DC) pension plan is introduced to replace a
 defined benefit (DB) pension plan, the portability benefit from a DC
 pension plan costs the employees to bear the investment risk from managing
 the pension fund. To protect the retirement income and maintain the
 portability benefit, a guarantee to exchange back the old defined benefit
 is supposed to be demanded for the new DC plan's participants in the
 guarantee market. In light of such a demand, this article applies a
 claim-terminating insurance pricing model to offer a contingent claims
 pricing model for a portable pension guarantee. Using the new labor
 pension plan of Taiwan as an illustration, a guaranteed DC pension will
 carry an extra cost of almost 50% up to over 100% of the plan's
 contributions over the participant's work life, given the current
 mandatory minimum requirement of a contribution rate of 6%. 
Journal: Applied Economics 
Pages: 699-706 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500397127 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397127 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:699-706




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Chiarini 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Chiarini 
Author-Name: Elisabetta Marzano 
Author-X-Name-First: Elisabetta 
Author-X-Name-Last: Marzano 
Title: Market consumption and hidden consumption. A test for substitutability 
Abstract:
  In this paper an empirical analysis is performed on the relationship
 between private consumption and underground economy for the Italian case.
 It is found that private market consumption and underground (or hidden)
 consumption may be defined as 'complementary goods': an increase in
 underground consumption tends to increase family market consumption and
 increase its marginal utility. An implication of this result is that the
 nonmarket sector does not offer hedging opportunities to the
 consumer-worker as stressed by Busato and Chiarini's (2004) artificial
 economy. Moreover, wealth effects associated with a change in underground
 consumption are negative. A statistical model confirms this structural
 interpretation. 
Journal: Applied Economics 
Pages: 707-716 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500396632 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396632 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:707-716




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Biman Chand Prasad 
Author-X-Name-First: Biman Chand 
Author-X-Name-Last: Prasad 
Title: Doubling fish exports or garment exports: which would benefit the Fijian economy most? Evidence from a computable general equilibrium model 
Abstract:
  The need to diversify Fiji's export base has been identified as an
 important avenue for reducing Fiji's vulnerabilities in international
 trade. This paper poses the question: Doubling fish exports or garment
 exports: which would be most beneficial for the Fijian economy? To achieve
 the goal of this paper, the computable general equilibrium model is used,
 this being at the forefront of research on 'impact studies'. The main
 finding is that when garment exports and fish exports are doubled, the
 benefits to the Fijian economy are greater from garment exports,
 suggesting that the latter has stronger linkages with the rest of the
 economy. On the basis of this finding, policymakers should divert
 resources towards sustaining the garment industry whose future is
 uncertain due to expiring trade agreements and unstable economic policies. 
Journal: Applied Economics 
Pages: 717-723 
Issue: 6 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500396731 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396731 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:717-723




Template-Type: ReDIF-Article 1.0
Author-Name: Hubert Ooghe 
Author-X-Name-First: Hubert 
Author-X-Name-Last: Ooghe 
Author-Name: Tine De Langhe 
Author-X-Name-First: Tine 
Author-X-Name-Last: De Langhe 
Author-Name: Jan Camerlynck 
Author-X-Name-First: Jan 
Author-X-Name-Last: Camerlynck 
Title: Profile of multiple versus single acquirers and their targets: a research note 
Abstract:
  Few studies have addressed the pre-take-over financial characteristics of
 multiple versus single acquirers and their targets. Therefore this study
 investigates whether multiple acquirers, with some experience in acquiring
 companies, might acquire firms with different (better) financial
 characteristics than single acquirers. Results confirm this hypothesis in
 multiple ways. It seems that multiple acquirers look for complementary
 firms in terms of sales and growth. Multiple acquirers specifically want
 to acquire companies with a high sales generating ability in order to
 improve their own sales generating ability. 
Journal: Applied Economics 
Pages: 725-733 
Issue: 7 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500293581 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293581 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:725-733




Template-Type: ReDIF-Article 1.0
Author-Name: Knut Veisten 
Author-X-Name-First: Knut 
Author-X-Name-Last: Veisten 
Author-Name: St&#xe5;le Navrud 
Author-X-Name-First: St&#xe5;le 
Author-X-Name-Last: Navrud 
Title: Contingent valuation and actual payment for voluntarily provided passive-use values: Assessing the effect of an induced truth-telling mechanism and elicitation formats 
Abstract:
  A fundamental question about the contingent valuation (CV) method is to
 what degree it predicts actual payments (AP). This has particularly been
 an intriguing matter related to voluntary provision of public goods
 representing primarily passive-use values. This paper reports the results
 from such a CV-AP comparison. Applying a voluntary payment mechanism there
 exists a theoretical expectation of upward bias in CV estimates and
 downward bias in AP. This study applied an induced truth-telling mechanism
 in one treatment group to assess the hypothetical bias effect in CV. The
 CV estimates in this treatment group were significantly lower than in the
 group that did not face this mechanism. But this effect was limited to
 those responding/acting to dichotomous choice, not affecting those
 responding to open-ended questions about willingness to pay. 
Journal: Applied Economics 
Pages: 735-756 
Issue: 7 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500400152 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400152 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:735-756




Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Berg 
Author-X-Name-First: Nathan 
Author-X-Name-Last: Berg 
Author-Name: Donald Lien 
Author-X-Name-First: Donald 
Author-X-Name-Last: Lien 
Title: Same-sex sexual behaviour: US frequency estimates from survey data with simultaneous misreporting and non-response 
Abstract:
  Survey-based research concerning sexual behaviour almost inevitably
 confronts the simultaneous problems of misreporting and non-response.
 These problems lead to disparities among estimates of the number and
 characteristics of those who engage in same-sex sexual behaviour. This
 paper proposes a statistical model to consistently estimate the frequency
 of same-sex sexual behaviour in the presence of non-ignorable misreporting
 and non-response. The model is fitted using 1991-2000 General Social
 Survey data. Frequency estimates corrected for simultaneous misreporting
 and non-response are reported. According to the model, 7.1% of US males
 and 4.1% of females - 15.8 million individuals - are not exclusively
 heterosexual. Allowing for misreporting and non-response increases the
 estimated same-sex frequency by more than four million. The model reveals
 new patterns between misreporting and non-response probabilities and
 standard demographic variables such as age and income. 
Journal: Applied Economics 
Pages: 757-769 
Issue: 7 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427114 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427114 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:757-769




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Fernandez Kranz 
Author-X-Name-First: Daniel Fernandez 
Author-X-Name-Last: Kranz 
Title: Why has wage inequality increased more in the USA than in Europe? An empirical investigation of the demand and supply of skill 
Abstract:
  During the past two decades the wage gap between high and low skill
 labour has increased more in the USA than in many European countries. In
 this paper, the correspondence between occupation and education is used to
 construct aggregates of skill supply, skill demand and unemployment by
 skill group that are comparable across countries. Using individual data
 for years 1983-1994, it is found that the relative demand for skilled
 labour has increased to a similar extent in the USA and in Europe and that
 wage inequality remained low in Europe partly because the European
 relative supply of skill increased much faster than in the USA, and partly
 because European relative wages were rigid, which caused an increase in
 unemployment among the low-skilled. 
Journal: Applied Economics 
Pages: 771-788 
Issue: 7 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500396087 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396087 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:771-788




Template-Type: ReDIF-Article 1.0
Author-Name: Connie Bayudan 
Author-X-Name-First: Connie 
Author-X-Name-Last: Bayudan 
Title: Wives' time allocation and intrahousehold power: evidence from the Philippines 
Abstract:
  Utilizing a rich survey data collected in the Southern part of the
 Philippines, this paper examines the time allocation of wives within the
 collective household framework by investigating not only the role of
 socioeconomic factors but also the influence of various intrahousehold
 power indicators. Analysis of autonomy and finality of intrahousehold
 decisions discloses that decisions are not unilaterally decided by a
 single household member, a result which confirms the prediction of
 collective household framework. Adopting a simple test procedure, this
 paper also examines which of the competing household models, collective or
 unitary, best describes these Philippine time-use data. Testing results
 lend support to the validity of the collective household framework. 
Journal: Applied Economics 
Pages: 789-804 
Issue: 7 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600597972 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600597972 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:789-804




Template-Type: ReDIF-Article 1.0
Author-Name: Markus Knell 
Author-X-Name-First: Markus 
Author-X-Name-Last: Knell 
Author-Name: Helmut Stix 
Author-X-Name-First: Helmut 
Author-X-Name-Last: Stix 
Title: Three decades of money demand studies: differences and similarities 
Abstract:
  By analysing almost 1000 money demand estimations this paper attempts to
 summarize the diverse findings of the literature on this topic. Using both
 descriptive statistics and meta-regressions, several stylized facts are
 derived about the two most prominent determinants of money demand income
 and interest rate elasticities. In particular, it is shown we show that
 the size and signs of average elasticities are systematically related to
 the choice of included variables (e.g. M1 or M3, short-run or long-run
 interest rates), the country grouping (e.g. USA versus Germany) and the
 empirical specification (e.g. the inclusion of one or two interest rates). 
Journal: Applied Economics 
Pages: 805-818 
Issue: 7 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600569377 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600569377 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:805-818




Template-Type: ReDIF-Article 1.0
Author-Name: Boriss Siliverstovs 
Author-X-Name-First: Boriss 
Author-X-Name-Last: Siliverstovs 
Title: Multicointegration in US consumption data 
Abstract:
  The present study tests for the existence of multicointegration between
 real per capita private consumption expenditure and real per capita
 disposable personal income in the USA. In doing so, the study exploits the
 fact that the flows of disposable income and consumption expenditure on
 the one hand, and the stock of consumers' wealth, which can be considered
 as cumulative past discrepancies between the flows of income and
 expenditure, on the other hand, can be thought of as a stock-flow model,
 in which multicointegration is likely to occur. Recently developed I(2)
 techniques are applied for testing for multicointegrating relations and
 find supporting evidence for the existence of multicointegration in US
 consumption data. 
Journal: Applied Economics 
Pages: 819-833 
Issue: 7 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500398760 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500398760 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:819-833




Template-Type: ReDIF-Article 1.0
Author-Name: Murat Isik 
Author-X-Name-First: Murat 
Author-X-Name-Last: Isik 
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Title: An analysis of the impact of climate change on crop yields and yield variability 
Abstract:
  This paper develops an econometric model of stochastic production
 functions to quantify the impacts of climatic variables on the mean,
 variance, and covariance of crop yields. The estimates of the production
 function parameters and their elasticities are utilized to analyse the
 impacts of the projected climate change on agriculture. The results show
 that the climate change will have modest effects on the mean crop yields,
 but will significantly reduce the variance and covariance for most of the
 crops considered. The results have implications for allocations of
 agricultural land among crops and for crop production mix. 
Journal: Applied Economics 
Pages: 835-844 
Issue: 7 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500193682 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193682 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:835-844




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Cashin 
Author-X-Name-First: Paul 
Author-X-Name-Last: Cashin 
Author-Name: Catherine Pattillo 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Pattillo 
Title: African terms of trade and the commodity terms of trade: close cousins or distant relatives? 
Abstract:
  This paper examines whether there is a relationship between the commodity
 terms of trade (the price of primary commodities relative to the price of
 manufactures) and the net barter terms of trade of 42 Sub-Saharan African
 countries. For most countries, there is little evidence of a stable,
 long-run relationship between the two terms of trade series. Accordingly,
 the practice in the literature of proxying for movements in any given
 country's terms of trade by using an aggregate index of relative commodity
 prices is inappropriate, and is likely to engender misleading policy
 conclusions. 
Journal: Applied Economics 
Pages: 845-859 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600683244 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600683244 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:845-859




Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Dolfin 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Dolfin 
Title: An examination of firms' employment costs 
Abstract:
  The existence of quasi-fixed costs of work may affect firms' desired
 employee hours and number of workers, which has important implications for
 the estimation of labour supply parameters. Firm-level data from the 1982
 Employment Opportunity Pilot Project is used to estimate the importance to
 firms of employee quasi-fixed costs related to searching, hiring,
 training, and firing. Specifically, this paper examines how these costs
 affect number of workers and hours per worker, turnover, and vacancies, to
 the extent that the costs are determined by the firm's presumably
 exogenous industrial classification. An attempt is made to control for
 biases due to employee heterogeneity as well. Results show that higher
 costs are associated with lower turnover, fewer vacancies, and longer
 hours as predicted by a model of labour demand. 
Journal: Applied Economics 
Pages: 861-878 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600597576 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600597576 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:861-878




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Charikleia Economidou 
Author-X-Name-First: Charikleia 
Author-X-Name-Last: Economidou 
Author-Name: Gour Goswami 
Author-X-Name-First: Gour 
Author-X-Name-Last: Goswami 
Title: Bilateral J-curve between the UK vis-a-vis her major trading partners 
Abstract:
  Currency depreciation is said to worsen the trade balance first before
 resulting in an improvement, yielding a short-run pattern labelled the
 J-curve phenomenon. While early studies tested the J-curve by using
 aggregate trade data, a few recent studies have employed bilateral data,
 mostly between the US and her major trading partners. In this paper we
 extend the literature by considering the experience of the UK. We test the
 phenomenon between the UK and her twenty major trading partners by
 employing data over 1973Q1-2001Q3 period. In most instances, we find no
 support for the J-curve in the short-run. In the long run, only in five
 cases has the exchange rate had significant impact on the bilateral trade
 balance. 
Journal: Applied Economics 
Pages: 879-888 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500399388 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399388 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:879-888




Template-Type: ReDIF-Article 1.0
Author-Name: Enrica Carbone 
Author-X-Name-First: Enrica 
Author-X-Name-Last: Carbone 
Title: Understanding intertemporal choices 
Abstract:
  Previous experimental results show clearly that many subjects do not
 optimize when solving a life-cycle consumption problem. What do they do?
 This paper attempts to resolve this question, looking at the discounting,
 hyperbolic and rolling models as possible explanations. Data from two
 experiments (one an experiment with a typical subject pool and the second
 an experiment with subjects from the CentER panel) is used, and the
 advantage of having experimental data is exploited, which means that one
 can actually estimate the hyperbolic model. It is shown that the
 (exponential) discounting model appears to give the best explanation -
 suggesting that subjects do look ahead (as they should) but increasingly
 less as time passes (as they should not in the context of these
 experiments). 
Journal: Applied Economics 
Pages: 889-898 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500399313 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399313 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:889-898




Template-Type: ReDIF-Article 1.0
Author-Name: Tilman Bruck 
Author-X-Name-First: Tilman 
Author-X-Name-Last: Bruck 
Author-Name: John P. Haisken-De New 
Author-X-Name-First: John P. Haisken-De 
Author-X-Name-Last: New 
Author-Name: Klaus Zimmermann 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Zimmermann 
Title: Creating low skilled jobs by subsidizing market-contracted household work 
Abstract:
  The paper analyses the determinants of household work contracted in the
 German shadow economy. The German socio-economic household panel, which
 enumerates casual domestic employment, is used to estimate the demand for
 such household work. The regressors include regional wage rates, household
 income and several control variables for household composition. It is
 found that the demand for household work in the shadow economy is very
 income elastic. This suggests that targeted wage subsidies, linked to
 household work agencies, would be very effective in raising the legal
 demand for domestic help. A wage subsidy of 50% of wage costs could thus
 establish up to 500 000 new jobs for previously unemployed or non-working
 low skilled workers. The net fiscal costs of such a scheme are about 6.200
 Euro per full-time job. In addition, society benefits from more law
 enforcement and from a raised female labour supply, especially by highly
 qualified mothers. 
Journal: Applied Economics 
Pages: 899-911 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500397598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397598 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:899-911




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco de Castro 
Author-X-Name-First: Francisco 
Author-X-Name-Last: de Castro 
Title: The macroeconomic effects of fiscal policy in Spain 
Abstract:
  This paper focuses on the effects of fiscal policy in Spain analysed in a
 VAR context. Fiscal shocks are found to involve significant effects on
 GDP, private consumption, private investment, interest rates and prices.
 Non-Keynesian effects are observed. Moreover, evidence on the channels
 highlighted in the literature for such effects to arise is found, notably
 the effects of permanent income on consumption and investment on the
 demand side, coupled with the response of the equilibrium wage on the
 supply side affecting entrepreneurial profits and investment. The response
 of interest rates seems to reinforce both effects. Furthermore, the
 different readings of spending or taxes do not affect macroeconomic
 variables homogeneously. 
Journal: Applied Economics 
Pages: 913-924 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500369225 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369225 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:913-924




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund 
Author-X-Name-First: Christian 
Author-X-Name-Last: Grund 
Title: Overcompensation by severance payments 
Abstract:
  An important aim of severance payments is to reduce the economic
 disadvantages of dismissed employees. However, it may well be the case
 that a considerable fraction of employees is actually better off, if they
 are re-employed shortly after their dismissal. This is the first attempt
 to estimate the relevance of overcompensation by severance payments. It is
 found that about 7% of dismissed employees or about one quarter of those
 with severance payments are overcompensated in Germany. In particular,
 employees with many years of tenure have chances to receive severance
 payments as well as wage increases in their new jobs subsequent to
 dismissal. 
Journal: Applied Economics 
Pages: 925-930 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600581950 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600581950 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:925-930




Template-Type: ReDIF-Article 1.0
Author-Name: Oya P&#x131;nar Ard&#x131;c 
Author-X-Name-First: Oya P&#x131;nar 
Author-X-Name-Last: Ard&#x131;c 
Author-Name: Faruk Selcuk 
Author-X-Name-First: Faruk 
Author-X-Name-Last: Selcuk 
Title: The dynamics of a newly floating exchange rate: the Turkish case 
Abstract:
  In recent years, many emerging market economies have switched or are in
 the process of switching to a floating exchange rate regime. Most of these
 economies have a history of high inflation and a high level of foreign
 currency denominated debt. Therefore, the stability of the exchange rate
 and the dynamics of its volatility are more crucial than before. This
 paper analyses the dynamics of exchange rate in Turkey in the aftermath of
 recent float in February 2001. The Turkish experience is a particularly
 important one, and provides valuable lessons for other countries as the
 Central Bank is trying to simultaneously contain the volatility of
 exchange rate and pursue an implicit inflation targeting policy. The
 reported findings indicate that the Central Bank policies, accompanied
 with favourable external factors, were effective in taming the volatility
 of the exchange rate in a relatively short period of time. However, there
 is a significant real appreciation of the currency during the same period.
 Given the high level of public debt and real interest rates, the current
 state of the economy is very susceptible to any adverse shocks. 
Journal: Applied Economics 
Pages: 931-941 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600649732 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600649732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:931-941




Template-Type: ReDIF-Article 1.0
Author-Name: Taegi Kim 
Author-X-Name-First: Taegi 
Author-X-Name-Last: Kim 
Author-Name: Changsuh Park 
Author-X-Name-First: Changsuh 
Author-X-Name-Last: Park 
Title: Productivity growth in Korea: efficiency improvement or technical progress? 
Abstract:
  This paper shows that the productivity gains in Korean manufacturing are
 mostly from efficiency improvement rather than from technical progress.
 These findings are contrary to those of previous sectoral studies of
 Korean and Taiwanese manufacturing, but are consistent with those of
 cross-country studies. Regression results show that both domestic and
 foreign R&D played an important role in increasing efficiency and
 technical progress in Korean manufacturing. However, domestic R&D has more
 effect on technical progress, while foreign R&D has played a relatively
 stronger role in efficiency improvement. 
Journal: Applied Economics 
Pages: 943-954 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600639006 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600639006 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:943-954




Template-Type: ReDIF-Article 1.0
Author-Name: Maria de los Angeles Garcia Valinas 
Author-X-Name-First: Maria de los Angeles Garcia 
Author-X-Name-Last: Valinas 
Title: Analysing rationing policies: drought and its effects on urban users' welfare (Analysing rationing policies during drought) 
Abstract:
  The aim of this paper is to study the impact on consumers of rationing
 policies implemented during water shortages. Water scarcity gives rise to
 the need for rationing, and various methods, including supply cutoffs, can
 be used. A model is devised to quantify the welfare losses associated with
 qualitive and quantitive restrictions. Based on virtual prices and using
 the consumer surplus as a welfare measurement, welfare variations for
 different users have been calculated. To achieve the aim, information
 relative to Seville (Spain) has been used, analysing the drought period
 that took place in the first half of the 1990s. It has been possible to
 observe the main source that led to welfare losses for each kind of user. 
Journal: Applied Economics 
Pages: 955-965 
Issue: 8 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600638925 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600638925 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:955-965




Template-Type: ReDIF-Article 1.0
Author-Name: Dale Cloninger 
Author-X-Name-First: Dale 
Author-X-Name-Last: Cloninger 
Author-Name: Roberto Marchesini 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Marchesini 
Title: Execution moratoriums, commutations and deterrence: the case of Illinois 
Abstract:
  In an earlier work the impact of an execution moratorium in Texas on the
 monthly returns (first differences) of homicides was investigated. That
 moratorium was judicially imposed pending the appeal of a death sentence
 that could have had widespread consequences. A similar methodology is
 applied to the state of Illinois. In January 2000, the Governor of
 Illinois declared a moratorium on executions pending a review of the
 judicial process that condemned certain murderers to the death penalty. In
 January 2003 just prior to leaving office, the Governor commuted the death
 sentences of all of those who then occupied death row. It is found that
 these actions are coincident with the increased risk of homicide incurred
 by the residents of Illinois over the 48 month post-event period for which
 data were available. The increased risk produced an estimated 150
 additional homicides during the post-event period. 
Journal: Applied Economics 
Pages: 967-973 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500462020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:967-973




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel 
Author-X-Name-First: Rajeev 
Author-X-Name-Last: Goel 
Author-Name: Edward Hsieh 
Author-X-Name-First: Edward 
Author-X-Name-Last: Hsieh 
Author-Name: Michael Nelson 
Author-X-Name-First: Michael 
Author-X-Name-Last: Nelson 
Author-Name: Rati Ram 
Author-X-Name-First: Rati 
Author-X-Name-Last: Ram 
Title: Demand elasticities for Internet services 
Abstract:
  Noting the phenomenal growth of the Internet during the last few years,
 the spectacular nature of the information technology revolution
 represented by it, and lack of direct studies of demand for Internet
 services, this paper makes a beginning toward providing price- and
 income-elasticity estimates by using a simple model and cross-country OECD
 data for the year 2000. Seven main points are noted. First, the demand
 seems price-inelastic in all variants estimated by us. Second, the income
 elasticity appears to be unity or larger, indicating Internet services may
 not constitute a 'necessity'. Third, the absolute price elasticity seems
 lower, particularly for the broader price measure, in the group of users
 than for subscribers. Fourth, the income elasticity also seems smaller for
 users than for subscribers. Fifth, the income-elasticity estimates suggest
 that measures to encourage Internet usage through subscriptions might not
 seem equity enhancing, but encouragement of usage through increased access
 to non-subscriber users should not carry such an implication. Sixth, the
 inelastic demand indicates scope for price leverage by providers. Seventh,
 the inelastic demand might have some revenue implications relative to the
 possibility of imposing or raising taxes on Internet usage. 
Journal: Applied Economics 
Pages: 975-980 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600581448 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600581448 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:975-980




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Bohringer 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Bohringer 
Author-Name: Heinz Welsch 
Author-X-Name-First: Heinz 
Author-X-Name-Last: Welsch 
Title: Burden sharing in a greenhouse: egalitarianism and sovereignty reconciled 
Abstract:
  The allocation of emission entitlements across countries is the single
 most controversial issue in international climate policy. Extreme
 positions within the policy debate range from entitlements based on
 current emission patterns (sovereignty) to entitlements based on
 equal-per-capita allocations (egalitarianism). This paper shows that
 gradual convergence from sovereignty towards egalitarianism could provide
 a pragmatic solution to the equity debate: When combined with
 international emissions trading, the convergence approach stands out for
 offering the developing countries substantial incentives for participation
 in the international greenhouse gas abatement effort without imposing
 excessive burdens on the industrialized countries. 
Journal: Applied Economics 
Pages: 981-996 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500399453 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399453 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:981-996




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Kalotychou 
Author-X-Name-First: Elena 
Author-X-Name-Last: Kalotychou 
Author-Name: Sotiris Staikouras 
Author-X-Name-First: Sotiris 
Author-X-Name-Last: Staikouras 
Title: Volatility and trading activity in Short Sterling futures 
Abstract:
  The objective of the present study is to examine the interplay between
 information, trading volume and volatility in Short Sterling futures. More
 specifically, the paper concentrates on the role of liquidity variables as
 conduits of information arrival and whether such variables could be an
 exclusive platform of the market's information set. The analytical
 framework employed to examine the interaction among those factors is based
 on the conditional volatility family of techniques. The approach is well
 suited as it naturally leads to examine the interaction among volatility
 and sources of information. In an attempt to identify proxies of
 information and their role in determining volatility, four main
 conclusions have emerged. First, the empirical findings suggest that both
 volume and open interest exhibit a positive correlation with volatility.
 Second, based on the current methodology, one can observe the persistence
 and importance of GARCH effects after accounting for liquidity. Third, the
 liquidity variables remain significantly exogenous compared with other
 studies. Finally, although both liquidity variables are found significant,
 their role as vehicles of transmitting information is proved to be weak
 with respect to the information itself. 
Journal: Applied Economics 
Pages: 997-1005 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500400038 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:997-1005




Template-Type: ReDIF-Article 1.0
Author-Name: Per Sandberg 
Author-X-Name-First: Per 
Author-X-Name-Last: Sandberg 
Title: Variable unit costs in an output-regulated industry: The Fishery 
Abstract:
  Departing from general cost theory of the firm and bioeconomic theory of
 the fishery, this study contributes with an empirical examination of how
 variable unit costs in a Norwegian demersal and pelagic fishery depend on
 output and the fish stock. The identification of the separate effects that
 the two factors have on costs is not common in the literature. Three
 Norwegian fleets fishing Norwegian spring spawning herring (Clupea
 Harengus) and five Norwegian fleets fishing Northeast Arctic cod (Gadus
 Morhua) are evaluated. The findings indicate that variable unit costs fall
 in output in both fisheries. The results also show that variable unit
 costs fall in fish stock in the demersal fishery, but with a stock
 elasticity of variable unit costs in absolute terms significantly less
 than 1. These results are of relevance to a manager seeking the optimal
 harvest rule and to understand fishermen's incentives when individual
 vessel quotas are reduced. 
Journal: Applied Economics 
Pages: 1007-1018 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500405912 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405912 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1007-1018




Template-Type: ReDIF-Article 1.0
Author-Name: Nicole Jonker 
Author-X-Name-First: Nicole 
Author-X-Name-Last: Jonker 
Author-Name: Hans van Ophem 
Author-X-Name-First: Hans 
Author-X-Name-Last: van Ophem 
Author-Name: Joop Hartog 
Author-X-Name-First: Joop 
Author-X-Name-Last: Hartog 
Title: Dual track or academic route for auditors: does it matter? 
Abstract:
  In the Netherlands auditors can be trained in a part-time educational
 track in which students combine working and studying or in a full-time
 educational track. The former training is relatively firm-specific whereas
 the latter training is relatively general. Applying human capital theory,
 we expect higher wage growth for full-time educated auditors than for
 dual-educated auditors. Furthermore, full-time educated auditors may have
 better outside options than part-time educated auditors. This may make it
 easier for them to switch employers than for the part-time educated
 auditors. The predictions on tenure and wages of differently educated
 auditors are supported by the estimation results in this paper. The
 part-time, dual track appears an important route for students from a lower
 socioeconomic background. 
Journal: Applied Economics 
Pages: 1019-1035 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500400459 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400459 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1019-1035




Template-Type: ReDIF-Article 1.0
Author-Name: Seval Mutlu 
Author-X-Name-First: Seval 
Author-X-Name-Last: Mutlu 
Author-Name: Azucena Gracia 
Author-X-Name-First: Azucena 
Author-X-Name-Last: Gracia 
Title: Spanish food expenditure away from home (FAFH): by type of meal 
Abstract:
  Changes in household income, wife's labour force participation, household
 size, and other demographic factors influence purchasing meals away from
 home in Spain. Spanish household expenditure on lunch, breakfast and
 snacks away from home were investigated within the household production
 theory context. The Becker's model states that consumers maximize their
 utility subject not only to the budget constraint but also to a time
 constraint. Moreover, this model assumes that consumers demand not only
 the food product itself but also the associated convenience to save time
 in food preparation. Therefore, the relation between the value of time and
 food away from home has a high relevance. Data come from the Spanish
 Continuous Household Survey for 1996. Due to the large number of zeros in
 the dependent variable, different dependent variable censured models
 (Double Hurdle, Infrequency of Purchase, etc.) have been specified and
 estimated. These studies found that food purchasing behaviour away from
 home of Spanish consumers differ by type of meal. Income, household
 characteristics and the opportunity cost of woman time are important
 factors determining food consumption patterns away from home. Moreover,
 income and opportunity cost of woman time present a positive effect on
 away from home consumption for type of meal. 
Journal: Applied Economics 
Pages: 1037-1047 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500399750 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399750 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1037-1047




Template-Type: ReDIF-Article 1.0
Author-Name: Nadir Ocal 
Author-X-Name-First: Nadir 
Author-X-Name-Last: Ocal 
Title: Nonlinear models, composite longer leading indicator and forecasts for UK real GDP 
Abstract:
  This paper examines the role of the Office for National Statistics
 Composite Longer Leading Indicator, in nonlinear business cycle models for
 growth rates of UK real gross domestic product (GDP). These models are of
 the smooth transition regression class, with the transition between
 &#x201c;regimes&#x201d; expressed as functions of lagged changes in the
 leading indicator. In general, evidence is found of business cycle regime
 asymmetries, with increases and decreases in the leading indicator
 implying distinct responses for the dependent variable. Single transition
 function appears to capture these asymmetries satisfactorily. Nonlinear
 models provide more accurate one-step ahead forecasts than corresponding
 linear leading indicator models. 
Journal: Applied Economics 
Pages: 1049-1053 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500399784 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399784 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1049-1053




Template-Type: ReDIF-Article 1.0
Author-Name: Hannu Tervo 
Author-X-Name-First: Hannu 
Author-X-Name-Last: Tervo 
Title: Regional unemployment, self-employment and family background 
Abstract:
  This paper analyses the role of regional unemployment on self-employment.
 The paper argues that family background separates individuals with respect
 to the effect of unemployment. The empirical analysis is based on data on
 a sample of Finnish residents aged 0-14 years in 1970 whose subsequent
 employment is examined. The results show that high unemployment in a
 region pushes individuals from self-employed families into
 self-employment, while it has the opposite effect on individuals from wage
 earner families. The push effect seems to work only among those
 individuals who already have entrepreneurial skills through their family
 background. 
Journal: Applied Economics 
Pages: 1055-1062 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500400053 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400053 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1055-1062




Template-Type: ReDIF-Article 1.0
Author-Name: Hugo Toledo 
Author-X-Name-First: Hugo 
Author-X-Name-Last: Toledo 
Title: Workers and trade liberalization: simulating the potential impact of the FTAA on Venezuela's output and wages 
Abstract:
  The Specific Factors model of production and trade with seven skilled
 labour categories and specific capital in three leading sectors of the
 Venezuelan economy is used to produce comparative static elasticities of
 changing prices on factor prices and output as a result of the emerging
 Free Trade Agreement of the Americas (FTAA). Results show that every
 labour group except production labour is projected to lose under free
 trade, while manufacturing capital gains at the expense of capital in
 agriculture and services due to a projected increase in export demand.
 Adjustments to free trade are large implying the importance of economic
 policy in the transition period to free trade. 
Journal: Applied Economics 
Pages: 1063-1069 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500400103 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400103 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1063-1069




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Makdissi 
Author-X-Name-First: Paul 
Author-X-Name-Last: Makdissi 
Author-Name: Quentin Wodon 
Author-X-Name-First: Quentin 
Author-X-Name-Last: Wodon 
Title: Fuel poverty and access to electricity: comparing households when they differ in needs 
Abstract:
  Although sequential stochastic dominance techniques have been used in the
 literature to make comparisons of income poverty which are robust to the
 assumptions made about the economies of scale within households, the
 techniques could be applied to a much wider set of issues. In this paper,
 these techniques are applied to energy deprivation in Guatemala. Fuel
 poverty is compared among households with and without access to
 electricity, and it is assessed whether access to electricity for those
 who do not have access currently would eliminate the observed difference
 in fuel poverty between the two groups of households. 
Journal: Applied Economics 
Pages: 1071-1078 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600649948 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600649948 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1071-1078




Template-Type: ReDIF-Article 1.0
Author-Name: Adnan Kasman 
Author-X-Name-First: Adnan 
Author-X-Name-Last: Kasman 
Author-Name: Canan Yildirim 
Author-X-Name-First: Canan 
Author-X-Name-Last: Yildirim 
Title: Cost and profit efficiencies in transition banking: the case of new EU members 
Abstract:
  This paper analyses cost and profit efficiencies in commercial banking in
 the eight Central and Eastern European countries that became new members
 to the European Union. Common stochastic cost and profit frontiers with
 country-specific variables are employed in order to take into account
 macro-economic and financial sector conditions that vary over time and
 across countries. The impact of foreign ownership on performance is also
 examined. The results indicate a wide range of cost and profit
 inefficiency scores across countries and across different size groups. All
 banking systems in the sample display significant levels of cost and
 profit inefficiency and there does not seem to be any continuous
 improvement in performance over time. There is also some evidence that
 foreign banks perform, on average, better than domestic banks. 
Journal: Applied Economics 
Pages: 1079-1090 
Issue: 9 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600639022 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600639022 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1079-1090




Template-Type: ReDIF-Article 1.0
Author-Name: Axel Dreher 
Author-X-Name-First: Axel 
Author-X-Name-Last: Dreher 
Title: Does globalization affect growth? Evidence from a new index of globalization 
Abstract:
  The study develops an index of globalization covering its three main
 dimensions: economic integration, social integration, and political
 integration. Using panel data for 123 countries in 1970-2000 it is
 analysed empirically whether the overall index of globalization as well as
 sub-indexes constructed to measure the single dimensions affect economic
 growth. As the results show, globalization indeed promotes growth. The
 dimensions most robustly related with growth refer to actual economic
 flows and restrictions in developed countries. Although less robustly,
 information flows also promote growth whereas political integration has no
 effect. 
Journal: Applied Economics 
Pages: 1091-1110 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392078 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1091-1110




Template-Type: ReDIF-Article 1.0
Author-Name: Adriana Neligan 
Author-X-Name-First: Adriana 
Author-X-Name-Last: Neligan 
Title: Public funding and repertoire conventionality in the German public theatre sector: an econometric analysis 
Abstract:
  This study empirically examines the relationship between public funding
 and repertoire decisions in the German public theatre sector. A
 cross-sectional econometric model is constructed to estimate the effects
 for a sample of 127 public theatres covering the theatre season 1998/1999
 using a conventionality index as the dependent variable which has to be
 calculated first. The empirical results show that public subsidy,
 subscription income, multiple venues, the existence of other theatres in a
 community as well as the size and the level of education of a community
 have a significant impact on repertoire conventionality. 
Journal: Applied Economics 
Pages: 1111-1121 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500405961 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405961 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1111-1121




Template-Type: ReDIF-Article 1.0
Author-Name: Volker Clausen 
Author-X-Name-First: Volker 
Author-X-Name-Last: Clausen 
Author-Name: Bernd Hayo 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Hayo 
Title: Asymmetric monetary policy effects in EMU 
Abstract:
  This paper develops a semi-structural modelling approach to study
 asymmetric monetary transmission in Europe. A system of dynamic equations
 containing reaction functions for monetary policy as well as output gap
 and inflation equations is simultaneously estimated for France, Germany
 and Italy. We find asymmetries on the demand side in the strength of
 interest rate transmission and on the supply side in the effects of the
 output gap on inflation. The responses are similar in Germany and Italy
 and generally stronger than in France. Out-of-sample tests do not find a
 structural break in the transmission mechanisms prior to the establishment
 of the European Monetary Union. 
Journal: Applied Economics 
Pages: 1123-1134 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600581497 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600581497 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1123-1134




Template-Type: ReDIF-Article 1.0
Author-Name: Bernhard Boockmann 
Author-X-Name-First: Bernhard 
Author-X-Name-Last: Boockmann 
Author-Name: Viktor Steiner 
Author-X-Name-First: Viktor 
Author-X-Name-Last: Steiner 
Title: Cohort effects and the returns to education in West Germany 
Abstract:
  Using a Mincer-type wage function, we estimate cohort effects in the
 returns to education for West German workers born between 1925 and 1974.
 The main problem to be tackled in the specification is to separately
 identify cohort, experience, and possibly also age and year effects in the
 returns. For women, we find a large and robust decline in schooling
 premia: In the private sector, the returns to a further year of
 post-compulsory education fell from ten per cent for the 1945-49 cohort to
 about six per cent for those born in the early 1970s. Cohort effects in
 men's returns to education are less obvious, but we do find evidence that
 they, too, have declined. We conclude by identifying possible reasons for
 the decline. 
Journal: Applied Economics 
Pages: 1135-1152 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500439168 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439168 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1135-1152




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Are Australia's tourism markets converging? 
Abstract:
  In this paper we make an important contribution towards understanding
 Australia's tourism industry by examining whether or not Australia's
 tourism markets are converging. We define convergence as the reduction in
 tourist arrivals' differential, which is calculated as the difference
 between total visitor arrivals to a country and visitor arrivals from a
 particular tourist source market. We analyze Australia's thirteen major
 tourist source markets using monthly data over the period January 1991 to
 September 2003. To test for convergence, we use the univariate and panel
 Lagrange multiplier (LM) tests. Our main finding is that when we allow for
 two structural breaks in the data series, both univariate and panel LM
 tests provide strong evidence for convergence of Australia's tourism
 markets. This implies that policies aimed at attracting visitor arrivals
 from any one of Australia's thirteen tourist source markets will boost the
 volume of tourists coming into the country. 
Journal: Applied Economics 
Pages: 1153-1162 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500391377 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391377 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1153-1162




Template-Type: ReDIF-Article 1.0
Author-Name: Saziye Gazioglu 
Author-X-Name-First: Saziye 
Author-X-Name-Last: Gazioglu 
Author-Name: Aysit Tansel 
Author-X-Name-First: Aysit 
Author-X-Name-Last: Tansel 
Title: Job satisfaction in Britain: individual and job related factors 
Abstract:
  Recently there has been a resurgence of interest in the analysis of job
 satisfaction variables. Job satisfaction is correlated with labour market
 behaviour such as productivity, quits and absenteeism. In this paper four
 different measures of job satisfaction are related to a variety of
 personal and job characteristics. The data used are from the 28 240
 British employees in the Workplace Employee Relations Survey, 1997. This
 data set is larger and more recent than in any previous studies. Four
 measures of job satisfaction that have not previously been used are
 considered: satisfaction with influence over job; satisfaction with amount
 of pay; satisfaction with sense of achievement; and satisfaction with
 respect from supervisors. The paper contributes to the literature by
 analysing job satisfaction with respect to industrial composition and
 occupations. One of the striking findings is that those in the education
 and health sectors are less satisfied with their pay but more satisfied
 with their sense of achievement. Further, it is found that employees who
 received job training were more satisfied than those who had no training
 opportunities. Unlike previous studies, it is found that married
 individuals have lower job satisfaction levels than the unmarried. Other
 results confirm those in the literature, such as women being more
 satisfied than men, and a U-shaped relationship between satisfaction and
 age. 
Journal: Applied Economics 
Pages: 1163-1171 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392987 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392987 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1163-1171




Template-Type: ReDIF-Article 1.0
Author-Name: Victor Matheson 
Author-X-Name-First: Victor 
Author-X-Name-Last: Matheson 
Title: The effects of labour strikes on consumer demand in professional sports: revisited 
Abstract:
  Previous research has concluded that the 1981 and 1994-1995 Major League
 Baseball (MLB) strikes have caused short-term losses in attendance but
 have not resulted in any long-term effects on attendance. While total
 attendance at MLB games following the 1994-1995 strike has recovered to
 its pre-strike levels, this has been done only through the construction of
 new stadiums at an unprecedented pace which cannot continue into the
 future. After accounting for stadium effects, average MLB baseball
 attendance has dropped significantly since the 1994-1995 strike. 
Journal: Applied Economics 
Pages: 1173-1179 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392193 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392193 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1173-1179




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Schaltegger 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Schaltegger 
Author-Name: Benno Torgler 
Author-X-Name-First: Benno 
Author-X-Name-Last: Torgler 
Title: Growth effects of public expenditure on the state and local level: evidence from a sample of rich governments 
Abstract:
  There is a vast empirical literature investigating the relationship
 between government size and economic growth. But the empirical evidence of
 growth effects of public expenditure using cross-country regressions is
 still inconclusive. According to a number of authors this is not
 surprising since the negative relationship only applies for rich countries
 with a large public sector. Restricting their analysis on rich countries
 only they can show the predicted negative impact. Naturally, a selection
 of a sub-sample of rich countries is always somewhat arbitrary. Another
 possibility is to concentrate on governments within a rich country.
 However, only few studies investigate the effect of state and local
 spending on economic growth. This study concentrates on the relationship
 between public expenditure and economic growth within a rich country using
 the full sample of state and local governments from Switzerland over the
 1981-2001 period. The general finding is a fairly robust negative
 relationship between government size and economic growth. However, in
 contrast to public spending from operating budgets there is no significant
 impact on economic growth by expenditure from capital budgets. 
Journal: Applied Economics 
Pages: 1181-1192 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392334 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392334 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1181-1192




Template-Type: ReDIF-Article 1.0
Author-Name: Rene Fahr 
Author-X-Name-First: Rene 
Author-X-Name-Last: Fahr 
Author-Name: Uwe Sunde 
Author-X-Name-First: Uwe 
Author-X-Name-Last: Sunde 
Title: Regional dependencies in job creation: an efficiency analysis for Western Germany 
Abstract:
  This paper investigates the efficiency of the matching process between
 job seekers and vacancy posting firms in West Germany, using variation
 across labour market regions and across time. The results of a stochastic
 frontier analysis shed new light on the extent of and regional differences
 in search frictions, on potential determinants of frictional
 inefficiencies and on the consequences of German reunification for the
 matching process. The paper also presents novel evidence on the complex
 interactions between spatial contingencies among regional labour markets:
 matching efficiency decreases with spatial autocorrelation in hiring,
 implying indirect evidence for crowding externalities. 
Journal: Applied Economics 
Pages: 1193-1206 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600685140 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600685140 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1193-1206




Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Hung Wang 
Author-X-Name-First: Jen-Hung 
Author-X-Name-Last: Wang 
Author-Name: Larry Tzeng 
Author-X-Name-First: Larry 
Author-X-Name-Last: Tzeng 
Author-Name: Junji Tien 
Author-X-Name-First: Junji 
Author-X-Name-Last: Tien 
Title: Willingness to pay and the demand for lotto 
Abstract:
  Why do many bettors participate in an unfair gamble, in particular a
 lotto game, while at the same time purchase insurance? The
 willingness-to-pay for lotto is analysed to find a 'rational' explanation
 for a (local) risk-averter's participation in an unfair bet. A reasonable
 case is found where bettors' preference can be approximately characterized
 as a locally risk-averse and sufficiently prudent cubic function. Such
 bettors dislike risk but prefer standard third moment of the payoff. The
 result suggests that the traditional effective price for lotto demand may
 omit important explanatory variables. We thus propose an alternative
 method to examine the demand for lotto by incorporating the second and the
 third moments of lotto's payoff. Evidence from Taiwan Lotto data supports
 that lotto bettors could be both (locally) risk-averse and rational. 
Journal: Applied Economics 
Pages: 1207-1216 
Issue: 10 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500405938 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405938 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1207-1216




Template-Type: ReDIF-Article 1.0
Author-Name: Avik Chakrabarti 
Author-X-Name-First: Avik 
Author-X-Name-Last: Chakrabarti 
Title: Real exchange rates and real interest rates once again: a multivariate panel cointegration analysis 
Abstract:
  This paper employs multivariate panel cointegration techniques to
 re-examine the empirical relationship between bilateral real exchange
 rates and real interest rates. The results from a panel of 1470 quarterly
 observations on Canada, France, Germany, Italy, Japan, UK, and USA over
 the period 1977 to 1994 indicate the absence of any long-run relationship
 between the two variables. 
Journal: Applied Economics 
Pages: 1217-1221 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500398695 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500398695 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1217-1221




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Eisenhauer 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Eisenhauer 
Author-Name: Luigi Ventura 
Author-X-Name-First: Luigi 
Author-X-Name-Last: Ventura 
Title: The prevalence of hyperbolic discounting: some European evidence 
Abstract:
  Experimental matching data are used from the 2000 Bank of Italy Survey of
 Household Income and Wealth (SHIW) and the 2000 wave of the Center for
 Economic Research (CentER) Savings Survey at Tilburg University to compare
 the relative frequencies of hyperbolic and exponential discounters. Among
 3200 Italian respondents and 1400 Dutch respondents, less than a quarter
 exhibited hyperbolic discounting. This finding is both statistically
 significant and robust with respect to various assumptions regarding
 utility; moreover, it holds across a wide variety of economic, social and
 demographic characteristics. The youngest, poorest, most urban and least
 educated individuals are the most likely to be hyperbolic discounters. In
 addition, it is found that hyperbolic discounters accumulate less wealth
 and are somewhat less likely than exponential discounters to utilize
 commitment devices to constrain their future choices. 
Journal: Applied Economics 
Pages: 1223-1234 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392391 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392391 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1223-1234




Template-Type: ReDIF-Article 1.0
Author-Name: Martyn Duffy 
Author-X-Name-First: Martyn 
Author-X-Name-Last: Duffy 
Title: Tobacco consumption and policy in the United Kingdom 
Abstract:
  In recent years, several structural changes and sequences of shocks have
 occurred in the market for tobacco in the UK, including an explosive
 growth in smuggling. This study examines whether it is still possible to
 estimate a reliable, plausible tobacco demand equation from time series
 data for the UK whilst allowing for all of the various shocks and
 structural changes. A second objective of this study is to use the
 estimated demand function to evaluate tobacco policy in the UK, including
 the scope for using tax increases to achieve reduced consumption and
 increased revenues. It is found that smuggling has diminished the revenue
 yield of higher rates of duty, but total consumption of tobacco has been
 reduced. In addition to the introduction of further measures to control
 smuggling, policy may need to place more emphasis in the future on health
 campaigns and smoking restrictions. 
Journal: Applied Economics 
Pages: 1235-1257 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392599 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392599 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1235-1257




Template-Type: ReDIF-Article 1.0
Author-Name: Yang Zou 
Author-X-Name-First: Yang 
Author-X-Name-Last: Zou 
Title: Empirical studies on the relationship between public and private investment and GDP growth 
Abstract:
  This study performs empirical studies on the interaction between public
 and private investment and GDP growth for Japan and the USA. Since the
 data for each country used show features that are quite different from
 each other, empirical methods of GMM (Generalized Method of Moments) and
 OLS (Ordinary Least squares) are accordingly applied to Japan and the USA,
 respectively. The empirical results suggest that both public and private
 investment make great contributions to Japanese economic growth, while the
 US private investment seems to play a much more significant role than
 public investment. 
Journal: Applied Economics 
Pages: 1259-1270 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392649 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392649 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1259-1270




Template-Type: ReDIF-Article 1.0
Author-Name: Joaquim Andrade 
Author-X-Name-First: Joaquim 
Author-X-Name-Last: Andrade 
Author-Name: Vladimir Teles 
Author-X-Name-First: Vladimir 
Author-X-Name-Last: Teles 
Title: An empirical model of the Brazilian country risk -- an extension of the beta country risk model 
Abstract:
  This paper develops a statistical model to study the Brazilian country
 risk using a country beta model in the spirit of Harvey and Zhou (1993),
 Erb et al. (1996a, b) and Gangemi et al. (2000). Specifically, the impact
 of macroeconomic variables is analysed using a time-varying parameter
 approach. An extension of the original model is applied in order to verify
 the parameters' stability over time. It is found that monetary policy had
 a significant and stable impact on Brazil's country risk and international
 reserves presented a significant impact only during the fixed exchange
 rate period. 
Journal: Applied Economics 
Pages: 1271-1278 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426843 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426843 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1271-1278




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Hanafiah Harvey 
Author-X-Name-First: Hanafiah 
Author-X-Name-Last: Harvey 
Title: How sensitive are Malaysia's bilateral trade flows to depreciation? 
Abstract:
  In an attempt to assess the impact of currency depreciation on the trade
 balance, recent studies are employing disaggregated trade data to avoid
 aggregation bias. However, since import and export prices are not
 available at disaggregated level, recent studies are using export and
 import values rather than their volumes so that they can establish direct
 relation between inpayments and the exchange rate as well as between
 outpayments and the exchange rate. This study explores the experience of
 Malaysia. Bilateral inpayments and outpayments models are estimated
 between Malaysia and her 14 trading partners using quarterly data and
 bound testing approach to cointegration. The results show that while real
 depreciation of the ringgit has short-run effects, in the long-run it
 increases Malaysia's inpayments from only five trading partners. 
Journal: Applied Economics 
Pages: 1279-1286 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500405490 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405490 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1279-1286




Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Pons-Novell 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Pons-Novell 
Title: An analysis of a panel of Spanish GDP forecasts 
Abstract:
  This article undertakes an analysis of the forecasts included in the
 Panel of Spanish Forecasts in order to highlight the fact that the
 predictions made and the errors committed by the entities participating on
 this panel contain information that is particularly useful in analysing
 the evolution of the Spanish economy. Here, a study is undertaken of the
 GDP growth forecasts for the Spanish economy for the period 2000 to 2002
 made in distinct forecast time horizons. Specifically, it analyses whether
 the forecasts are optimistic or pessimistic and whether new information
 concerning the variable being predicted is used efficiently in revising
 earlier forecasts. 
Journal: Applied Economics 
Pages: 1287-1292 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500399917 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399917 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1287-1292




Template-Type: ReDIF-Article 1.0
Author-Name: Kwabena Gyimah-Brempong 
Author-X-Name-First: Kwabena 
Author-X-Name-Last: Gyimah-Brempong 
Author-Name: Jeffrey Racine 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Racine 
Title: Alcohol availability and crime: a robust approach 
Abstract:
  The relationship between alcohol availability and crime is investigated
 in this study. It first considers common parametric specifications that
 have been used in the literature. After applying a powerful consistent
 conditional moment test for correct specification, it is found that these
 common parametric specifications are rejected by the data. The study then
 proceeds with a robust nonparametric method that can have a rate of
 convergence close to that for a correctly specified parametric model when
 the underlying relationship is somewhat linear. The application of
 nonparametric methods reveals structure present in the data that would
 remain undetected when applying common parametric specifications, but more
 importantly reveals that the impact of alcohol availability is
 considerably higher than one might believe on the basis of the
 misspecified parametric model. It is also found that the marginal effect
 of alcohol availability on crime changes with the level of alcohol
 availability. 
Journal: Applied Economics 
Pages: 1293-1307 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500398869 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500398869 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1293-1307




Template-Type: ReDIF-Article 1.0
Author-Name: Kristian Jonsson 
Author-X-Name-First: Kristian 
Author-X-Name-Last: Jonsson 
Title: Time-specific disturbances and cross-sectional dependency in a small-sample heterogeneous panel data unit root test 
Abstract:
  In their seminal work, Im et al. (1997, 2003) suggested that time series
 for several cross-sectional units could be used to increase the power of
 the Dickey--Fuller unit root test. They argued that when cross-sectional
 correlation is a problem that can be modelled by a time-specific factor,
 demeaning across the cross-sectional units can solve the problem. In this
 study, this proposition is proven valid, but it is also shown that
 previously supplied standardizing moments are inappropriate when the
 number of cross-sections are small, causing size to differ from the
 significance level. To correct this size distortion, the current paper
 supplies response surface parameters that can be used to obtain moments
 that are valid when a time-specific factor suffices for modelling
 cross-sectional correlation in the heterogeneous panel data unit root
 framework. The correct size of the panel data unit root test comes at the
 cost of a somewhat lower power against a stationary alternative. 
Journal: Applied Economics 
Pages: 1309-1317 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500397671 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397671 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1309-1317




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Author-Name: Rup Singh 
Author-X-Name-First: Rup 
Author-X-Name-Last: Singh 
Title: Demand for money in India: 1953-2003 
Abstract:
  The demand for money, especially in the developing countries, is an
 important relationship for formulating appropriate monetary policy and
 targeting monetary variables. In this paper the demand for narrow money in
 India is estimated and its robustness evaluated. It is found that there is
 a stable demand for money for almost half a century from 1953 to 2003.
 There is no evidence for any significant effects of the 1991 financial
 reforms. 
Journal: Applied Economics 
Pages: 1319-1326 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500396228 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396228 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1319-1326




Template-Type: ReDIF-Article 1.0
Author-Name: Andres Picazo-Tadeo 
Author-X-Name-First: Andres 
Author-X-Name-Last: Picazo-Tadeo 
Author-Name: Ernest Reig-Martinez 
Author-X-Name-First: Ernest 
Author-X-Name-Last: Reig-Martinez 
Title: Agricultural externalities and environmental regulation: evaluating good practice in citrus production 
Abstract:
  Economic activity takes place in a scenario characterized by an
 increasing number of environmental regulations aimed at bringing under
 control the emission of contaminating wastes. In this paper, we evaluate
 the impact of transforming a code of good practice in nitrogen
 fertilization on Spanish citrus fruit farms into an environmental
 regulation of compulsory fulfilment. Using data envelopment techniques, we
 calculate unrestricted and environmentally regulated short-run maximum
 profits. Both profit values are then used to compute an index of the cost
 of regulation. Our results suggest that the cost of shifting from a merely
 recommended practice to a binding rule is low. On average, the loss of
 profit computed is only about 4%. Furthermore, we find that farms' overall
 efficiency is low and that the current gap between observed and regulated
 fertilization practices could be overcome by improving overall management
 efficiency. 
Journal: Applied Economics 
Pages: 1327-1334 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500399966 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399966 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1327-1334




Template-Type: ReDIF-Article 1.0
Author-Name: Burak Gunalp 
Author-X-Name-First: Burak 
Author-X-Name-Last: Gunalp 
Author-Name: Tuncay Celik 
Author-X-Name-First: Tuncay 
Author-X-Name-Last: Celik 
Title: Competition in the Turkish banking industry 
Abstract:
  This study employs the Panzar-Rosse H-statistic to assess the competitive
 environment of the Turkish banking industry over the period 1990 to 2000.
 The results indicate that for the period under consideration bank revenues
 behaved as if they were earned under conditions of monopolistic
 competition. Therefore, the observed high profitability of the Turkish
 banking sector does not seem to be an indication of an increase in
 monopoly power. The liberalization process and deregulation measures
 appear to have beneficial effects on competition. 
Journal: Applied Economics 
Pages: 1335-1342 
Issue: 11 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500405656 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405656 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1335-1342




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Roosenboom 
Author-X-Name-First: Peter 
Author-X-Name-Last: Roosenboom 
Author-Name: Tjalling van der Goot 
Author-X-Name-First: Tjalling 
Author-X-Name-Last: van der Goot 
Title: Broad-based employee stock options grants and IPO firms 
Abstract:
  This paper examines the broad-based grant of employee stock options
 (ESOs) in the period following the Initial Public Offering (IPO). Stock
 option grants are used to reduce the negative effects of conflicts of
 interests associated with a firm's going public. The study documents that
 option grants can be seen as corporate governance instruments for a number
 of model specifications. Also, it is found that there is a robust relation
 between option grants and market and accounting returns, respectively. To
 the best of the authors' knowledge, no previous study has investigated the
 determinants of the grants of employee stock options in the post-IPO
 period to both upper-level and lower-level executives during a period of
 sixteen years. Because the cross-sectional data of this study amply
 encompasses more than a business cycle it is possible to examine the
 grants of ESOs across tight and soft labour markets. During the former
 type of labour market it appears that more options are granted. Also, the
 empirical results provide evidence that option grants are an increasing
 function of the employees' benefits for the firm. Finally, the findings
 show that cash constrained firms appear to use employee stock option
 grants in place of cash compensation. 
Journal: Applied Economics 
Pages: 1343-1351 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500396897 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396897 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1343-1351




Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan 
Author-X-Name-First: Saroja 
Author-X-Name-Last: Selvanathan 
Title: How similar are alcohol drinkers? International evidence 
Abstract:
  Stigler and Becker (1977) argue that tastes neither change capriciously
 nor differ importantly between people; it is differences in prices and
 incomes that determine differences in behaviour. In this paper we analyse
 the alcohol consumption patterns of drinkers from 8 industrialized
 countries. We identify a number of empirical regularities and verify
 Stigler and Becker's hypothesis that income and price elasticities of
 demand are international constants by showing that alcohol consumption
 patterns in the eight countries exhibit intriguing similarities. The
 income and price elasticities of alcohol are found to be about 0.8 and
 -0.6, respectively, in all eight countries. 
Journal: Applied Economics 
Pages: 1353-1362 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500396780 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396780 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1353-1362




Template-Type: ReDIF-Article 1.0
Author-Name: Diane Dawson 
Author-X-Name-First: Diane 
Author-X-Name-Last: Dawson 
Author-Name: Rowena Jacobs 
Author-X-Name-First: Rowena 
Author-X-Name-Last: Jacobs 
Author-Name: Stephen Martin 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Martin 
Author-Name: Peter Smith 
Author-X-Name-First: Peter 
Author-X-Name-Last: Smith 
Title: The impact of patient choice and waiting time on the demand for health care: results from the London Patient Choice project 
Abstract:
  In a number of countries where health care is publicly funded, policies
 to introduce greater patient choice are being implemented. In most cases
 patient choice is seen as an instrument to reduce waiting times for
 elective (non-emergency) hospital services. An important issue is whether
 facilitating greater patient choice will increase the demand for health
 care and thereby undermine the achievement of reduced waiting times. A
 large scale pilot of choice in the London metropolitan area permits a test
 of the hypothesis that choice will affect demand. This paper estimates a
 model of the demand for elective surgery using a panel of 150 English
 acute hospitals over the period 1995 to 2004 for three surgical
 specialties. It examines whether demand shifted following the introduction
 of the London Patient Choice Project in 2002. The results suggest that the
 choice project only shifted NHS inpatient demand in orthopaedics and that
 this shift was inwards. 
Journal: Applied Economics 
Pages: 1363-1370 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500398810 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500398810 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1363-1370




Template-Type: ReDIF-Article 1.0
Author-Name: Ozge Akinci 
Author-X-Name-First: Ozge 
Author-X-Name-Last: Akinci 
Author-Name: Olcay Yucel Culha 
Author-X-Name-First: Olcay Yucel 
Author-X-Name-Last: Culha 
Author-Name: Umit Ozlale 
Author-X-Name-First: Umit 
Author-X-Name-Last: Ozlale 
Author-Name: Gulbin Sahinbeyo&#x11f;lu 
Author-X-Name-First: Gulbin 
Author-X-Name-Last: Sahinbeyo&#x11f;lu 
Title: The effectiveness of foreign exchange interventions under a floating exchange rate regime for the Turkish economy: a post-crisis period analysis 
Abstract:
  The reported study has two purposes: first, it attempts to improve the
 literature on foreign exchange interventions of the central banks for the
 emerging market economies, an area not previously studied in detail. The
 Turkish economy in the post-crisis period constitutes a good example in
 this context. Second, it proposes a new methodology, a time-varying
 parameter model, to analyse the effectiveness of the foreign exchange
 interventions. When the results from such an exercise are compared with
 those obtained from an event-study analysis, it is found that
 purchase-based interventions seem to be successful, especially after
 stabilization of the financial markets. In that sense, an asymmetry is
 detected regarding the effectiveness of interventions. Concerning the
 relationship between interest rates and exchange rates, it is found that
 the uncovered interest rate parity condition operates in an unconventional
 way, supporting the views put forward by recent emerging markets
 literature. 
Journal: Applied Economics 
Pages: 1371-1388 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392995 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392995 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1371-1388




Template-Type: ReDIF-Article 1.0
Author-Name: Amir Kia 
Author-X-Name-First: Amir 
Author-X-Name-Last: Kia 
Title: Economic policies and demand for money: evidence from Canada 
Abstract:
  This study identifies Canadian fiscal and monetary policy regime changes
 that could influence the services of money. It is argued that if these
 policy regime changes were not incorporated in the estimation of demand
 for real balances, the resulting estimate would be biased and unstable.
 Using Canadian monthly data for the January 1975 to June 2001 period, the
 paper estimates a standard demand-for-money (M1) function with and without
 these policy regime changes. It was found the demand for money in Canada
 is stable over the short- and long-run periods when these policy regime
 changes are incorporated and the estimated coefficients have correct
 signs. 
Journal: Applied Economics 
Pages: 1389-1407 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600684879 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600684879 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1389-1407




Template-Type: ReDIF-Article 1.0
Author-Name: Ansgar Belke 
Author-X-Name-First: Ansgar 
Author-X-Name-Last: Belke 
Author-Name: Thorsten Polleit 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Polleit 
Title: Monetary policy and dividend growth in Germany: long-run structural modelling versus bounds testing approach 
Abstract:
  This study examines the long-run relationship between monetary policy and
 dividend growth in Germany. For this purpose, cointegration is tested for
 between both variables in the period 1974 to 2003. However, problems
 related to spurious regression arise from the mixed order of integration
 of the series used, from mutual causation between the variables and from
 the lack of a long-run relationship among the variables of the model.
 These problems are addressed by applying the bounds testing approach to
 cointegration in addition to a more standard long-run structural modelling
 approach. In principle, both procedures are capable of dealing with the
 controversial issue of the exogeneity of monetary policy vis-a-vis
 dividend growth. However, the structural modelling approach still leaves a
 certain degree of uncertainty about the integration properties of the
 interest rate and the dividend growth. Hence, one feels legitimized to
 refer to the bounds testing procedure and to conclude that in the longer
 term short-term rates drive stock returns but not vice versa. 
Journal: Applied Economics 
Pages: 1409-1423 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500369100 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369100 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1409-1423




Template-Type: ReDIF-Article 1.0
Author-Name: Finn F&#xf8;rsund 
Author-X-Name-First: Finn 
Author-X-Name-Last: F&#xf8;rsund 
Author-Name: Roberto Zanola 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Zanola 
Title: The art of benchmarking: Picasso prints and auction house performance 
Abstract:
  The influence of the auction house on the price of comparable art objects
 is an issue in the economics of arts literature. The standard approach has
 been to run hedonic price regressions including the auction house as a
 dummy variable. The approach in this paper is to apply benchmarking tools
 developed in the efficiency and productivity literature directly to the
 auction house as a unit. New performance indices are developed based on a
 DEA benchmarking technique to analyse auction houses. The new indices
 discriminate well between auction houses by allowing one to identify both
 contemporaneous and inter-temporal performances. Additional best
 performance results are obtained for specific attributes. 
Journal: Applied Economics 
Pages: 1425-1434 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500400384 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400384 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1425-1434




Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Welters 
Author-X-Name-First: Riccardo 
Author-X-Name-Last: Welters 
Author-Name: Joan Muysken 
Author-X-Name-First: Joan 
Author-X-Name-Last: Muysken 
Title: Employer search and employment subsidies 
Abstract:
  In this paper insights into the literature on employment subsidy
 evaluation and that on employer search are merged to explore uncharted
 territory: the firm and job characteristics leading to deadweight loss in
 employment subsidy schemes. A model is developed which integrates various
 arguments found in the existing employer search literature. Using a survey
 of Dutch firms for 1999, the model predictions are confirmed. The richness
 of the data set enables one to construct some measures of deadweight loss
 which are new to the existing literature. It turns out that firms which
 experience low screening costs (large firms), firms that forego
 substantial production due to unfilled jobs (vacancies for full-time jobs)
 and firms operating in slack labour market conditions cause significantly
 more deadweight loss. 
Journal: Applied Economics 
Pages: 1435-1448 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500218745 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218745 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1435-1448




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Author-Name: Stephanie Leach 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: Leach 
Title: Performance evaluation of the English Premier Football League with data envelopment analysis 
Abstract:
  This paper uses data envelopment analysis (DEA) to evaluate the
 performance of English Premier League football clubs from 1998/99 to
 2002/03 combining sport and financial variables. The paper evaluates how
 close the clubs are relative to the frontier of best practices, analysing
 how they manage sport as well as financial results. Managerial
 implications of the research are devised. 
Journal: Applied Economics 
Pages: 1449-1458 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500396574 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396574 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1449-1458




Template-Type: ReDIF-Article 1.0
Author-Name: John Gibson 
Author-X-Name-First: John 
Author-X-Name-Last: Gibson 
Author-Name: Ananda Patabendige 
Author-X-Name-First: Ananda 
Author-X-Name-Last: Patabendige 
Title: Policy reform and labour demand in branches of Sri Lankan manufacturing industry 
Abstract:
  Many policy reforms in developing countries aim to remove factor market
 distortions. Whether such reforms reduce unemployment depends partly on
 the substitution possibilities between labour and other factors of
 production. This paper examines labour demand in seven branches of Sri
 Lankan manufacturing industry, using data on 4-digit industrial categories
 over the 1990 to 1997 period. The Box-Cox transformation is used to allow
 for flexible, and data-dependent, elasticities. The elasticity of
 capital-labour substitution varies widely across the branches of industry
 and is usually variable rather than constant. The average, long-run
 own-wage elasticity of labour demand for the manufacturing sector is
 estimated as -0.80, so factor price policy should have an important effect
 on labour demand in this setting. 
Journal: Applied Economics 
Pages: 1459-1467 
Issue: 12 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500367997 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367997 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1459-1467




Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsson 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Carlsson 
Author-Name: &#xc5;sa Lofgren 
Author-X-Name-First: &#xc5;sa 
Author-X-Name-Last: Lofgren 
Title: Airline choice, switching costs and frequent flyer programmes 
Abstract:
  Switching costs are costs that customers face when switching from one
 firm to another. In markets such as the airline market where repeated
 purchases are common, switching costs may be substantial. In this paper,
 the switching costs are estimated for domestic airline routes in Sweden
 between 1992 and 2002. In addition, the determinants of these switching
 costs are tested for; in particular, to what extent factors such as
 frequent flyer programmes and flag carriers have an effect on switching
 costs. A substantial switching cost is found. Although a large part of
 this calculated switching cost can be attributed to perceived quality
 differences, it is also found that frequent flyer programmes contribute a
 non-negligible part of the switching cost. The paper ends with a brief
 discussion on the welfare consequences of switching costs, where the
 connection between habit formation and switching costs is discussed. 
Journal: Applied Economics 
Pages: 1469-1475 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500419608 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500419608 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1469-1475




Template-Type: ReDIF-Article 1.0
Author-Name: S. Grosskopf  
Author-X-Name-First: S. 
Author-X-Name-Last: Grosskopf  
Author-Name: S. Self  
Author-X-Name-First: S. 
Author-X-Name-Last: Self  
Author-Name: O. Zaim 
Author-X-Name-First: O. 
Author-X-Name-Last: Zaim 
Title: Estimating the efficiency of the system of healthcare financing in achieving better health 
Abstract:
  This paper contributes to the effort to model and measure how the method
 of financing of health expenditure affects the efficiency with which
 better health can be achieved. The focus is on the health system
 efficiency at the country level, which provides an alternative to the work
 done in the WHO in this regard. The approach uses frontier techniques as
 in the WHO studies; however the paper appeals to the economic index number
 theory of quantity and productivity indexes, which have well-established
 axiomatic properties, and provides a means for aggregating multiple health
 output proxies without having to attach arbitrary weights. This allows the
 proposal of a specification that embeds health sector performance in a
 broader index of economic inputs and outputs and allows for comparisons
 across countries and time. 
Journal: Applied Economics 
Pages: 1477-1488 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500424798 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500424798 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1477-1488




Template-Type: ReDIF-Article 1.0
Author-Name: R. Scott Hacker 
Author-X-Name-First: R. Scott 
Author-X-Name-Last: Hacker 
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Title: Tests for causality between integrated variables using asymptotic and bootstrap distributions: theory and application 
Abstract:
  Causality tests in the Granger's sense are increasingly applied in
 empirical research. Since the unit root revolution in time-series
 analysis, several modifications of tests for causality have been
 introduced in the literature. One of the recent developments is the
 Toda-Yamamoto modified Wald (MWALD) test, which is attractive due to its
 simple application, its absence of pre-testing distortions, and its basis
 on a standard asymptotical distribution irrespective of the number of unit
 roots and the cointegrating properties of the data. This study
 investigates the size properties of the MWALD test and finds that in small
 sample sizes this test performs poorly on those properties when using its
 asymptotical distribution, the chi-square. It is suggested that use be
 made of a leveraged bootstrap distribution to lower the size distortions.
 Monte Carlo simulation results show that an MWALD test based on a
 bootstrap distribution has much smaller size distortions than
 corresponding cases when the asymptotic distribution is used. These
 results hold for different sample sizes, integration orders, and error
 term processes (homoscedastic or ARCH). This new method is applied to the
 testing of the efficient market hypothesis. 
Journal: Applied Economics 
Pages: 1489-1500 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500405763 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405763 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1489-1500




Template-Type: ReDIF-Article 1.0
Author-Name: Euston Quah 
Author-X-Name-First: Euston 
Author-X-Name-Last: Quah 
Author-Name: Edward Choa 
Author-X-Name-First: Edward 
Author-X-Name-Last: Choa 
Author-Name: K. C. Tan 
Author-X-Name-First: K. C. 
Author-X-Name-Last: Tan 
Title: Use of damage schedules in environmental valuation: The case of urban Singapore 
Abstract:
  Increasing concerns over environmental degradation have amplified the
 role of environmental economics and the valuation of non-pecuniary
 environmental resources as tools of analysis to facilitate the design of
 policies. To date, however, environmental valuation methods have continued
 to be unreliable, misleading and contentious as a guide to resource
 allocations and damage compensations. In this paper, a damage schedule is
 developed based on the scales of relative importance translated from
 people's judgments about values of various environmental damages or
 losses. The variance stable rank method is applied to the paired
 comparison responses to obtain the scale values as well as the importance
 of rankings. Statistical tests of significance are used to determine the
 level of the agreement among the survey respondents and the degree of
 correspondence between different respondent groups. This will determine
 the number of relative importance scales required to adequately represent
 the responses from all respondents. The scales of relative importance will
 then be translated into damage schedules. The setting for analysis is
 based on urban Singapore. 
Journal: Applied Economics 
Pages: 1501-1512 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500399842 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399842 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1501-1512




Template-Type: ReDIF-Article 1.0
Author-Name: Leo Turcotte 
Author-X-Name-First: Leo 
Author-X-Name-Last: Turcotte 
Author-Name: John Robst 
Author-X-Name-First: John 
Author-X-Name-Last: Robst 
Author-Name: Solomon Polachek 
Author-X-Name-First: Solomon 
Author-X-Name-Last: Polachek 
Title: Medical interventions among pregnant women in fee-for-service and managed care insurance: a propensity score analysis 
Abstract:
  This paper extends earlier research on the effect of managed care on the
 receipt of four medical interventions for pregnant women: ultrasound,
 induction/stimulation of birth, electronic fetal monitor, and Caesarean
 delivery. Propensity score methods are used to account for sample
 selection issues regarding insurance choice. Managed care enrollees are
 more likely to receive an ultrasound, which may be indicative of receiving
 better prenatal care. Managed care plans reduce the rate of Caesarean
 deliveries, but such limitations may be beneficial given the substantial
 medical evidence that Caesarean deliveries are over-utilized. The results
 indicate that insurance coverage does influence treatment intensity, but
 that utilization controls and provider financial incentives do not
 adversely affect care for pregnant women. 
Journal: Applied Economics 
Pages: 1513-1525 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426892 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426892 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1513-1525




Template-Type: ReDIF-Article 1.0
Author-Name: Alexandre Gohin 
Author-X-Name-First: Alexandre 
Author-X-Name-Last: Gohin 
Author-Name: Herve Guyomard 
Author-X-Name-First: Herve 
Author-X-Name-Last: Guyomard 
Author-Name: Chantal Le Mou&#xeb;l 
Author-X-Name-First: Chantal Le 
Author-X-Name-Last: Mou&#xeb;l 
Title: Tariff protection elimination and Common Agricultural Policy reform: implications of changes in methods of import demand modelling 
Abstract:
  The study proposes a way for accommodating the traditional Armington
 assumption to capture the possibility for a country to import imperfect
 substitutes as well as perfect substitutes for domestically produced
 goods. When this possibility is incorporated into a modelling framework,
 then a Common Agricultural Policy elimination scenario, including the
 setting to zero of import tariffs, would have starker implications than
 many studies suggest. To illustrate this point, a Computable General
 Equilibrium (CGE) model of the French economy is used, highlighting
 agricultural and food sectors. The study analyses the consequences for the
 French economy of a complete liberalization scenario in the European
 sector of cereals. 
Journal: Applied Economics 
Pages: 1527-1539 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500414609 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500414609 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1527-1539




Template-Type: ReDIF-Article 1.0
Author-Name: Yongil Jeon 
Author-X-Name-First: Yongil 
Author-X-Name-Last: Jeon 
Author-Name: Ishak Haji Omar 
Author-X-Name-First: Ishak Haji 
Author-X-Name-Last: Omar 
Author-Name: K. Kuperan 
Author-X-Name-First: K. 
Author-X-Name-Last: Kuperan 
Author-Name: Dale Squires 
Author-X-Name-First: Dale 
Author-X-Name-Last: Squires 
Author-Name: Indah Susilowati 
Author-X-Name-First: Indah 
Author-X-Name-Last: Susilowati 
Title: Developing country fisheries and technical efficiency: the Java Sea purse seine fishery 
Abstract:
  The analysis of technical efficiency in developing country agriculture is
 well established but has been overlooked for developing country commercial
 marine fisheries. Policies raising technical efficiency in agriculture are
 viewed as uniformly positive but are a mixed blessing in fisheries due to
 the open-access property right and common-pool resource. This study
 explores this contradiction and policies aimed to promote sustainable
 development and management of renewable common pool resources through a
 case study of the Java Sea purse seine fishery. Season of the year rather
 than fisher or vessel characteristics primarily determines technical
 efficiency. The results are contrasted with developing country agriculture
 and conclusions drawn for fisheries development strategies. 
Journal: Applied Economics 
Pages: 1541-1552 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500400525 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1541-1552




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Roos 
Author-X-Name-First: Michael 
Author-X-Name-Last: Roos 
Title: Regional price levels in Germany 
Abstract:
  Cross-sectional evidence on price levels is scarce for all countries.
 However, several studies suggest that there might exist considerable
 differences in price levels within countries, which has obvious welfare
 implications. A sample of price levels in 50 German cities in 1993 is used
 to analyse the determinants of inter-city price level differentials. The
 most important explanatory variables for price level differentials are
 population size and density and the average wage level. Using this
 information, the price levels are predicted in all 440 German districts
 and aggregated to the state level. At the state level convergence of the
 price levels to a common mean is found, but at a very low speed. The
 estimated half-life is about 19 years. 
Journal: Applied Economics 
Pages: 1553-1566 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500407207 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500407207 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1553-1566




Template-Type: ReDIF-Article 1.0
Author-Name: S. Selvanathan 
Author-X-Name-First: S. 
Author-X-Name-Last: Selvanathan 
Author-Name: E. A. Selvanathan 
Author-X-Name-First: E. A. 
Author-X-Name-Last: Selvanathan 
Title: Consumption patterns of food, tobacco and beverages: a cross-country analysis 
Abstract:
  This study considers the consumption patterns of food, tobacco, soft
 drinks, and alcohol in 43 developed and developing countries. Such an
 analysis is important for policy issues associated with tobacco, alcohol,
 and soft drinks. The results show that consumers in the developing
 countries spend a much higher proportion of their income on food than
 consumers in developed countries. The proportion of expenditure allocated
 to the other three commodities, tobacco, alcohol, and soft drinks, are
 similar in the two groups of countries. On average, people around the
 world allocate about one quarter of their income on food, 2.6% on tobacco,
 3.2% on alcohol and 1.2% on soft drinks. The income elasticity estimates
 reveal that food is a necessity in most countries, while tobacco and
 alcohol are necessities in most of the developed countries and luxuries in
 a majority of developing countries. Soft drinks are a luxury in a majority
 of the developing as well as the developed countries. The own-price
 elasticities show that demand for all four commodities is price inelastic
 in all countries. 
Journal: Applied Economics 
Pages: 1567-1584 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392664 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392664 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1567-1584




Template-Type: ReDIF-Article 1.0
Author-Name: Daiki Maki 
Author-X-Name-First: Daiki 
Author-X-Name-Last: Maki 
Author-Name: Shin-ichi Kitasaka 
Author-X-Name-First: Shin-ichi 
Author-X-Name-Last: Kitasaka 
Title: The equilibrium relationship among money, income, prices, and interest rates: evidence from a threshold cointegration test 
Abstract:
  The long-run equilibrium relationship among money, income, prices, and
 interest rates in Japan is investigated by the threshold cointegration
 test, which allows for asymmetric adjustment, introduced by Enders and
 Siklos (2001). The threshold cointegration approach provides clear
 evidence of the cointegration relationship characterized by asymmetric
 adjustment. By allowing for asymmetric adjustment, results are obtained
 showing the stability of the money demand function, similar to Lucas
 (1988), who pointed out that the money demand function is stable if unit
 income elasticity is imposed. In particular, the estimated results show
 that the adjustment process toward equilibrium is highly persistent above
 an appropriately estimated threshold, whereas the adjustment process
 toward equilibrium quickly converges below it. This finding indicates that
 deviations from equilibrium resulting from increases in money or decreases
 in income and prices are highly persistent. 
Journal: Applied Economics 
Pages: 1585-1592 
Issue: 13 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600597709 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600597709 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1585-1592




Template-Type: ReDIF-Article 1.0
Author-Name: Darold Barnum 
Author-X-Name-First: Darold 
Author-X-Name-Last: Barnum 
Author-Name: John Gleason 
Author-X-Name-First: John 
Author-X-Name-Last: Gleason 
Title: Biases in technical efficiency scores caused by intra-input aggregation: mathematical analysis and a DEA application using simulated data 
Abstract:
  In Data Envelopment Analysis (DEA) applications involving multiple inputs
 and outputs, inputs are aggregated into the total amounts of each type of
 input. For example, if input types 'labour' and 'capital' are used to
 produce multiple outputs, the total amount of labour used to produce all
 outputs is treated as one aggregated input and the total amount of capital
 as another. Resources are not disaggregated into input variables measuring
 the amount of labour used to produce the first output, the amount of
 labour used to produce the second output, the amount of labour used to
 produce the third output and so on, for both labour and capital. It is
 shown that such intra-input aggregation causes downward bias in reported
 technical efficiency scores, with variations in bias unrelated to true
 technical efficiency. Therefore, with few exceptions, any technical
 efficiency comparisons among DMUs are invalid. The presence of intra-input
 aggregation bias is demonstrated mathematically, simulation is used to
 exhibit its severity, and the exceptions that permit intra-input
 aggregation without causing bias are identified. It is concluded that, for
 multiple-input, multiple-output DEA applications, inputs must be
 disaggregated into the amounts used to produce each output in order to
 validly report technical efficiency, unless one of the exceptions is
 present. 
Journal: Applied Economics 
Pages: 1593-1603 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500405714 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405714 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1593-1603




Template-Type: ReDIF-Article 1.0
Author-Name: Randall Kesselring 
Author-X-Name-First: Randall 
Author-X-Name-Last: Kesselring 
Author-Name: Dale Bremmer 
Author-X-Name-First: Dale 
Author-X-Name-Last: Bremmer 
Title: Female income and the divorce decision: evidence from micro data 
Abstract:
  Escalating divorce rates during the 1960s and 1970s led to large numbers
 of academic investigations into the causes of divorce. Most of these
 studies concentrated on a significant increase in female income that
 resulted from rising female labour force participation rates. The
 difficulty with quantifying these arguments is that it is possible to
 observe the income of married females or it is possible to observe the
 income of divorced females, but it is not possible to observe both
 outcomes, simultaneously. This research attempts to resolve these
 difficulties by using sample selection techniques to correct for possible
 bias from simple observation of the income of married and divorced
 females. 
Journal: Applied Economics 
Pages: 1605-1616 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426934 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426934 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1605-1616




Template-Type: ReDIF-Article 1.0
Author-Name: J. Lindquist 
Author-X-Name-First: J. 
Author-X-Name-Last: Lindquist 
Author-Name: Roger Vilhelmsson 
Author-X-Name-First: Roger 
Author-X-Name-Last: Vilhelmsson 
Title: Is the Swedish central government a wage leader? 
Abstract:
  Is the Swedish central government a wage leader? This question is studied
 empirically in a vector error-correction model using a unique, high
 quality data set. It is first shown that salaries of white-collar workers
 in the private sector and central government are cointegrated. It is then
 found that private sector salaries are weakly exogenous to the system of
 equations. This means that the private sector is the wage leader in the
 long-run model. It is also found that changes in central government
 salaries do not Granger cause changes in private sector salaries.
 Together, these findings clearly demonstrate that the central government
 is not placing undue pressure on salaries in the private sector. The
 central government is not acting as a wage leader. 
Journal: Applied Economics 
Pages: 1617-1625 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500407124 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500407124 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1617-1625




Template-Type: ReDIF-Article 1.0
Author-Name: Dilip Dutta 
Author-X-Name-First: Dilip 
Author-X-Name-Last: Dutta 
Author-Name: Ihab Magableh 
Author-X-Name-First: Ihab 
Author-X-Name-Last: Magableh 
Title: A socio-economic study of the borrowing process: the case of microentrepreneurs in Jordan 
Abstract:
  This paper investigates the socio-economic determinants of four stages of
 borrowing process of the Jordanian microfinance market. The equations and
 functions corresponding to the stages of the borrowing process are
 estimated using a sample of 474 microentrepreneurs. The main results are
 as follow: variables that reflect the repayment ability are the main
 determinants of credit rationing in the microfinance market; religious
 beliefs, social responsibilities, availability of local microfinance
 provides, application costs, level of knowledge about microfinance
 providers significantly affect the borrowing process of
 microentrepreneurs. Credit rationing is found to be a problem for some
 applicants, but not for the majority. 
Journal: Applied Economics 
Pages: 1627-1640 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427148 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427148 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1627-1640




Template-Type: ReDIF-Article 1.0
Author-Name: Melvin Borland 
Author-X-Name-First: Melvin 
Author-X-Name-Last: Borland 
Author-Name: Roy Howsen 
Author-X-Name-First: Roy 
Author-X-Name-Last: Howsen 
Author-Name: Michelle Trawick 
Author-X-Name-First: Michelle 
Author-X-Name-Last: Trawick 
Title: Intra-school competition and student achievement 
Abstract:
  Within the economics of education literature, numerous studies have
 investigated the relationship between educational market competition and
 educational achievement. Educational market competition has been defined
 as either the availability of vouchers within a community or the number of
 schools or school districts within the relevant market structure. While
 these studies have shown that increases in inter-district competition
 result in increased student achievement, no studies, to our knowledge,
 have yet investigated the effect of intra-school competition on student
 achievement. Within this study, a measure of intra-school competition is
 developed and the findings indicate that increased intra-school
 competition leads to increased student achievement. 
Journal: Applied Economics 
Pages: 1641-1647 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426991 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426991 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1641-1647




Template-Type: ReDIF-Article 1.0
Author-Name: David Laband 
Author-X-Name-First: David 
Author-X-Name-Last: Laband 
Author-Name: Robert Tollison 
Author-X-Name-First: Robert 
Author-X-Name-Last: Tollison 
Title: Alphabetized coauthorship 
Abstract:
  It is found that alphabetized coauthored papers with two authors are more
 highly cited than non-alphabetized coauthored papers in both economics and
 agricultural economics. Alphabetized coauthored papers with more than two
 authors are not cited more, suggesting an optimal team size of two,
 ceteris paribus. We speculate that the preponderance of non-alphabetized
 papers in agricultural economics, as compared to economics, is due in some
 part to the differential importance of nonmarket-based criteria to
 evaluate research in this area as opposed to economics departments. 
Journal: Applied Economics 
Pages: 1649-1653 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427007 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427007 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1649-1653




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu 
Author-X-Name-First: Chun-Chu 
Author-X-Name-Last: Liu 
Title: A computable general equilibrium model of the southern region of Taiwan: the impact of the Tainan science-based industrial park 
Abstract:
  The primary modelling tools used to analyse regional economic issues
 include econometric forecasting models, fixed price input-output (I-O)
 multi-sector models, social accounting matrix (SAM) and computable general
 equilibrium (CGE) models. CGE models combine the advantages of
 econometric, I-O models and SAM, strengthening the theoretical basis of
 the modelling effort and thus enabling more precise policy analysis.
 Current CGE literature includes models used to analyse international
 trade, tax reform, energy and environment issues. However, application of
 this technique on a regional scale is rare in the scientific literature.
 In this paper, a small regional computable general equilibrium model is
 constructed and applied to analyse the economic impact of constructing
 Tainan science-based industrial park (TSBIP) locating in southern Taiwan.
 The research results provide a valuable reference for decision-makers in
 formulating industrial and regional policies, as well as helping business
 managers with strategic planning. 
Journal: Applied Economics 
Pages: 1655-1661 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426918 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426918 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1655-1661




Template-Type: ReDIF-Article 1.0
Author-Name: Junmin Wan 
Author-X-Name-First: Junmin 
Author-X-Name-Last: Wan 
Title: Cigarette tax revenues and tobacco control in Japan 
Abstract:
  The hypotheses of non-addiction, myopia and rational addiction are tested
 using annual, quarterly and monthly data. Changes in the prices of
 Japanese cigarettes can be viewed as exogenous from the point of view of
 consumer behaviour, because the Japanese government controls cigarette
 prices. The empirical results of this paper support the addiction
 hypothesis. The short-run and long-run price elasticities range from
 -0.338 to -0.421, and from -0.679 to -0.686, respectively; thus, increases
 in tax revenues in the long run are likely to be smaller than those in the
 short run. As a result, tax increases would be an effective means of
 curbing smoking and reducing its social cost. Furthermore, the debt
 compensation programmes for the Japan Railway and the National Forestry
 will not go according to plan, unless revenues are increased in the
 future. 
Journal: Applied Economics 
Pages: 1663-1675 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426900 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426900 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1663-1675




Template-Type: ReDIF-Article 1.0
Author-Name: Mario Mazzocchi 
Author-X-Name-First: Mario 
Author-X-Name-Last: Mazzocchi 
Author-Name: Davide Delle Monache 
Author-X-Name-First: Davide Delle 
Author-X-Name-Last: Monache 
Author-Name: Alexandra Lobb 
Author-X-Name-First: Alexandra 
Author-X-Name-Last: Lobb 
Title: A structural time series approach to modelling multiple and resurgent meat scares in Italy 
Abstract:
  This paper exploits a structural time series approach to model the time
 pattern of multiple and resurgent food scares and their direct and
 cross-product impacts on consumer response. A structural time series
 Almost Ideal Demand System (STS-AIDS) is embedded in a vector error
 correction framework to allow for dynamic effects (VEC-STS-AIDS). Italian
 aggregate household data on meat demand is used to assess the time-varying
 impact of a resurgent BSE crisis (1996 and 2000) and the 1999 Dioxin
 crisis. The VEC-STS-AIDS model monitors the short-run impacts and performs
 satisfactorily in terms of residuals diagnostics, overcoming the major
 problems encountered by the customary vector error correction approach. 
Journal: Applied Economics 
Pages: 1677-1688 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500405862 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405862 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1677-1688




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Huber 
Author-X-Name-First: Peter 
Author-X-Name-Last: Huber 
Author-Name: Kristin Smeral 
Author-X-Name-First: Kristin 
Author-X-Name-Last: Smeral 
Title: Measuring worker flows 
Abstract:
  The study explores differences between two measurement concepts of worker
 flows widely used in the literature referred to as the turnover and
 reallocation concepts. It is found that measuring worker flows by the
 turnover concept leads to substantially (about 5% of total employment)
 higher worker flow estimates and slightly increases age, size and industry
 group effects on firm level worker flows as well as differences between
 growing and declining firms relative to the reallocation concept. 
Journal: Applied Economics 
Pages: 1689-1695 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500392482 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392482 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1689-1695




Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim 
Author-X-Name-First: Sangho 
Author-X-Name-Last: Kim 
Author-Name: Young Hoon Lee 
Author-X-Name-First: Young Hoon 
Author-X-Name-Last: Lee 
Title: The productivity debate of East Asia revisited: a stochastic frontier approach 
Abstract:
  This paper applies a stochastic frontier production model to the data
 from Penn World Table's 49 countries over the period 1965 to 1990, to
 decompose total factor productivity growth into technical change and
 technical efficiency change. Empirical results show East Asian countries
 led the world in productivity growth, mainly because their technical
 efficiency gain was so much faster than that of other countries. East
 Asian countries also registered rapid technical change, which was
 comparable to that of the G6 countries after the late 1980s. The results
 provide evidence that negate the hypothesis that East Asian growth was
 mostly input-driven and unsustainable. 
Journal: Applied Economics 
Pages: 1697-1706 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426884 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426884 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1697-1706




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Pickhardt 
Author-X-Name-First: Michael 
Author-X-Name-Last: Pickhardt 
Author-Name: Jordi Sarda Pons 
Author-X-Name-First: Jordi Sarda 
Author-X-Name-Last: Pons 
Title: Size and scope of the underground economy in Germany 
Abstract:
  The objective of this paper is to improve estimations of the size and
 scope of the underground economy by introducing a new approach that
 combines the advantages of the two most commonly used approaches, i.e.
 currency demand and multiple indicators, multiple causes (MIMIC). The new
 approach is applied to Germany. Among other things, it is shown that the
 approach yields improved estimation results. Some policy perspectives are
 discussed in the concluding section. 
Journal: Applied Economics 
Pages: 1707-1713 
Issue: 14 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426868 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426868 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1707-1713




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Voon 
Author-X-Name-First: Jan 
Author-X-Name-Last: Voon 
Author-Name: Li Guangzhong 
Author-X-Name-First: Li 
Author-X-Name-Last: Guangzhong 
Author-Name: Jimmy Ran 
Author-X-Name-First: Jimmy 
Author-X-Name-Last: Ran 
Title: Does China really lose from RMB revaluation? Evidence from some export industries 
Abstract:
  This study attempts to examine the impacts of Real Exchange Rate (RER)
 misalignment on China's export performance. Using the SUR methodology
 coupled with disaggregate panel export data, it shows that China's export
 sector may not necessarily lose from the Central Government's decision to
 revalue its RMB against the US dollar because the negative impact of the
 RER appreciation on Chinese exports may be diluted by the positive impacts
 attributing to a reduction in the RER misalignment. 
Journal: Applied Economics 
Pages: 1715-1723 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427304 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427304 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1715-1723




Template-Type: ReDIF-Article 1.0
Author-Name: John Whitehead 
Author-X-Name-First: John 
Author-X-Name-Last: Whitehead 
Title: A comparison of contingent valuation method and random utility model estimates of the value of avoiding reductions in king mackerel bag limits 
Abstract:
  This paper estimates the value of king mackerel bag limit changes with
 both stated and revealed preference methods. The 1997 Marine Recreational
 Fishery Statistical Survey allows estimation of the value of avoiding bag
 limit reductions with the random utility model and the contingent
 valuation method. Using the contingent valuation method, the willingness
 to pay to avoid a one fish reduction in the bag limit is $2.45 per year.
 Using the random utility model, the willingness to pay to avoid a one fish
 reduction in the bag limit is $2.24 per trip and $7.71 for a two-month
 time period. Considering several methodological issues, the difference in
 willingness to pay between the stated and revealed preference methods is
 in the expected direction. 
Journal: Applied Economics 
Pages: 1725-1735 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427130 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427130 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1725-1735




Template-Type: ReDIF-Article 1.0
Author-Name: Santiago Lago-Penas 
Author-X-Name-First: Santiago 
Author-X-Name-Last: Lago-Penas 
Title: Capital grants and regional public investment in Spain: fungibility of aid or crowding-in effect? 
Abstract:
  The aim of capital grants to subcentral governments is to increase their
 investment. However, recipients may try to allocate additional resources
 to cut saving or deficit, generating a crowding-out effect on
 self-financed investment. Using data from the Spanish Autonomous
 Communities during the period 1984 to 1999, the effect of capital
 transfers on regional public investment, saving and deficit are estimated.
 Econometric results demonstrate that capital grants have no relevance when
 explaining the dynamics of saving. However, in deficit regressions they
 are shown to be both significant and negative. Both results lead us to a
 partial long-run crowding-out effect of grants on self-financed
 investment. 
Journal: Applied Economics 
Pages: 1737-1747 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427163 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427163 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1737-1747




Template-Type: ReDIF-Article 1.0
Author-Name: Hipolito Simon 
Author-X-Name-First: Hipolito 
Author-X-Name-Last: Simon 
Author-Name: Raul Ramos 
Author-X-Name-First: Raul 
Author-X-Name-Last: Ramos 
Author-Name: Esteban Sanroma 
Author-X-Name-First: Esteban 
Author-X-Name-Last: Sanroma 
Title: Collective bargaining and regional wage differences in Spain: an empirical analysis 
Abstract:
  This article analyses the importance of labour market institutions and,
 in particular, collective wage bargaining in shaping regional wage
 differences in the Spanish labour market. Using microdata from the Spanish
 Structure of Earnings Survey, our results reveal that there are
 significant inter-regional wage differences for similarly skilled workers.
 These differences are present throughout the whole wage structure and can
 be explained by both competitive and non-competitive factors, such as
 insufficient competition in product markets. In this context,
 industry-level collective bargaining plays a major role in accounting for
 regional wage differences, a role that in the Spanish case is enhanced due
 to its unusual regional dimension. 
Journal: Applied Economics 
Pages: 1749-1760 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427155 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427155 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1749-1760




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Andrikopoulos 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Andrikopoulos 
Author-Name: Ioannis Loizides 
Author-X-Name-First: Ioannis 
Author-X-Name-Last: Loizides 
Author-Name: Kyprianos Prodromidis 
Author-X-Name-First: Kyprianos 
Author-X-Name-Last: Prodromidis 
Title: Taxation and political business cycles in EU economies 
Abstract:
  This paper examines whether incumbent national governments of 11 member
 states of the European Union manipulated the tax policy instruments at
 their disposal in order to create national political business cycles,
 opportunistic or partisan. The empirical evidence, based on data
 concerning the 1965 to 1997 period, does not support this hypothesis.
 Rather, it appears that governments have pursued stabilization policies. 
Journal: Applied Economics 
Pages: 1761-1774 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427106 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427106 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1761-1774




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Funk 
Author-X-Name-First: Mark 
Author-X-Name-Last: Funk 
Title: Business cycles and research investment 
Abstract:
  This paper examines the impact of uncertainty and the business cycle on
 US high-tech manufacturing firms' research investment. Although the
 reliance on internal financing suggests firms will consider uncertainty
 and the business cycle when determining their research budget, little is
 known about how the business cycle and uncertainty influence research
 investment. Using firm-level data on sales, cash flow, and industry-level
 indicators of the business cycle, this paper finds that the firm's
 response to the business depends on the firm's industry and the industry's
 current location in the business cycle. The data also shows that the
 business cycle also depresses the firm's reaction to changes in sales and
 cash flow. Uncertainty clearly reduces research efforts, although
 non-linearly. 
Journal: Applied Economics 
Pages: 1775-1782 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427098 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427098 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1775-1782




Template-Type: ReDIF-Article 1.0
Author-Name: Gilles Mourre 
Author-X-Name-First: Gilles 
Author-X-Name-Last: Mourre 
Title: Did the pattern of aggregate employment growth change in the euro area in the late 1990s? 
Abstract:
  This paper examines whether the pattern of growth in euro area employment
 seen in the period 1997 to 2001 differs from that recorded in the past and
 what could be the reasons. First, a standard employment equation is
 estimated for the euro area as a whole. This shows that the lagged impact
 of both output growth and real labour cost growth, together with a
 productivity trend and employment 'inertia', can account for most of the
 employment developments between 1970 and the early 1990s. Conversely,
 these traditional determinants can only explain part of the employment
 development seen in recent years (1997 to 2001). Second, the paper shows
 sound evidence of a structural break in the aggregate employment equation
 in the late 1990s. Third, the paper provides some tentative explanations
 for this change in aggregate employment developments, using in particular
 country panels of institutional variables and of active labour market
 policies but also cross-sectional analyses. Among the relevant factors
 likely to have contributed to rising aggregate employment in recent years
 are changes in the sectoral composition of euro area employment, the
 strong development of part-time jobs, lower labour tax rates and possibly
 less stringent employment protection legislation and greater subsidies to
 private employment. 
Journal: Applied Economics 
Pages: 1783-1807 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427072 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427072 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1783-1807




Template-Type: ReDIF-Article 1.0
Author-Name: O. Mikhail 
Author-X-Name-First: O. 
Author-X-Name-Last: Mikhail 
Author-Name: C. J. Eberwein 
Author-X-Name-First: C. J. 
Author-X-Name-Last: Eberwein 
Author-Name: J. Handa 
Author-X-Name-First: J. 
Author-X-Name-Last: Handa 
Title: Estimating persistence in Canadian unemployment: evidence from a Bayesian ARFIMA 
Abstract:
  The degree of persistence in aggregate Canadian unemployment is estimated
 within a Bayesian ARFIMA class of models. The results conclude that
 unemployment exhibits persistence in the short and intermediate run. The
 evidence of persistence is stronger than previously reported by Koustas
 and Veloce (1996). This persistence cast a vital implication regarding
 disinflation policies, Based on the unemployment rate, these policies will
 prove very costly in terms of lost output and - if implemented - they
 considerably lengthen recessions. 
Journal: Applied Economics 
Pages: 1809-1819 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427023 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427023 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1809-1819




Template-Type: ReDIF-Article 1.0
Author-Name: Maxime de Marin de Montmarin 
Author-X-Name-First: Maxime de Marin 
Author-X-Name-Last: de Montmarin 
Title: A result similar to the Odlyzko's 'Paris Metro Pricing' 
Abstract:
  The two-stage competition is investigated in which two Internet Service
 Providers (ISP) choose sequentially their capacities and then their prices
 while facing a flow of new customers who decide to belong to one ISP or
 the other on the basis of a comparison of access prices and of expected
 congestion rates. At the equilibrium of the game a vertical
 differentiation between the Internet Service Providers endogenously
 emerges: the firm which provides the larger network has the lowest rate of
 congestion and the highest access price. The ISP providing the smallest
 network (thus the most congested) earns the larger profit. It will be
 noticed that the spontaneous functioning of oligopolistic competition
 produces a result similar to the Odlyzko's 'Paris Metro Pricing': at the
 equilibrium the two competitors propose different prices and rates of
 congestion, the most expensive one being also the least congested. 
Journal: Applied Economics 
Pages: 1821-1824 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426967 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426967 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1821-1824




Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer 
Author-X-Name-First: Dierk 
Author-X-Name-Last: Herzer 
Author-Name: Nowak-Lehnmann Felicitas 
Author-X-Name-First: Nowak-Lehnmann 
Author-X-Name-Last: Felicitas 
Title: What does export diversification do for growth? An econometric analysis 
Abstract:
  It is frequently suggested that export diversification contributes to an
 acceleration of growth in developing countries. Horizontal export
 diversification into completely new export sectors may generate positive
 externalities on the rest of the economy as export oriented sectors gain
 from dynamic learning activities due to contacts with foreign purchasers
 and exposure to international competition. Vertical diversification out of
 primary into manufactured exports is also associated with growth since
 primary export sectors generally do not exhibit strong spillovers. Yet
 there have been remarkably few empirical investigations into the link
 between export diversification and growth. This paper attempts to examine
 the hypothesis that export diversification is linked to economic growth
 via externalities of learning-by-doing and learning-by-exporting fostered
 by competition in world markets. The diversification-led growth hypothesis
 is tested by estimating an augmented Cobb-Douglas production function on
 the basis of annual time series data from Chile. Based on the theory of
 cointegration three types of statistical methodologies are used: the
 Johansen trace test, a multivariate error-correction model and the dynamic
 OLS procedure. Given structural changes in the Chilean economy, time
 series techniques considering structural breaks are applied. The
 estimation results suggest that export diversification plays an important
 role in economic growth. 
Journal: Applied Economics 
Pages: 1825-1838 
Issue: 15 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426983 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426983 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1825-1838




Template-Type: ReDIF-Article 1.0
Author-Name: Ken Yamada 
Author-X-Name-First: Ken 
Author-X-Name-Last: Yamada 
Title: Intra-family transfers in Japan: intergenerational co-residence, distance, and contact 
Abstract:
  Classified broadly, two motives for intra-family transfers exist:
 altruism and selfishness. This paper examines two selfish hypotheses - the
 exchange motive (strategic bequest motive) and the demonstration effect -
 using a new Japanese microdata set. Analysis of the determinants of
 intergenerational co-residence, distance between residences, and frequency
 of contact yields considerable support for the exchange motive but no
 support for the demonstration effect. The findings are consistent with the
 exchange motive after distinguishing it from mutual altruism. 
Journal: Applied Economics 
Pages: 1839-1861 
Issue: 16 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600825746 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600825746 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1839-1861




Template-Type: ReDIF-Article 1.0
Author-Name: D. Doorn 
Author-X-Name-First: D. 
Author-X-Name-Last: Doorn 
Title: Consequences of Hodrick-Prescott filtering for parameter estimation in a structural model of inventory behaviour 
Abstract:
  Much work in macroeconomics relies on detrending a time series prior to
 analysis. A popular method of detrending has been the Hodrick-Prescott
 (HP) filter. This filter has been widely applied in the Real Business
 Cycle literature to isolate the behaviour of economic variables at
 business cycle frequencies and to look at comovements between series over
 the business cycle. Prior work has shown that the use of this filter can
 have serious consequences for such analysis, such as inducing spurious
 correlations, and that a researcher should proceed with caution when
 applying the filter. Another use of HP filtering has been to achieve
 stationarity prior to estimation of structural econometric models. Little
 work has been done concerning the possible effects this method of
 detrending may have on parameter estimation from such models. Given the
 problems with the filter noted in the literature, it is likely these
 effects may be of some consequence to estimation results. Using a common
 model of inventory behaviour, a simulation study is conducted to assess
 the impact of using the HP filter for detrending prior to estimation. A
 comparison will be made to other methods of handling trend to gauge
 relative performance. 
Journal: Applied Economics 
Pages: 1863-1875 
Issue: 16 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427254 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427254 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1863-1875




Template-Type: ReDIF-Article 1.0
Author-Name: Linda N&#xf8;stbakken 
Author-X-Name-First: Linda 
Author-X-Name-Last: N&#xf8;stbakken 
Title: Cost structure and capacity in the Norwegian pelagic fisheries 
Abstract:
  The parameters of the short-run cost function are estimated for three
 vessel types taking part in the Norwegian pelagic fisheries: purse seine
 vessels, trawlers, and coastal vessels. The generalized translog
 functional form is used. Estimates of returns to scale are calculated and
 the results indicate that there are substantial economies of scale in all
 vessel classes. It is further investigated whether excess capacity varies
 with vessel size and age. The analysis suggests increased quotas per
 vessel to avoid rent dissipation. With the total allowable catch given,
 the number of participating vessels must be reduced. 
Journal: Applied Economics 
Pages: 1877-1887 
Issue: 16 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427197 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427197 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1877-1887




Template-Type: ReDIF-Article 1.0
Author-Name: Donny Tang 
Author-X-Name-First: Donny 
Author-X-Name-Last: Tang 
Title: The effect of financial development on economic growth: evidence from the APEC countries, 1981-2000 
Abstract:
  Using the modified growth model, this study examines whether financial
 development would facilitate economic growth among the Asia-Pacific
 Economic Cooperation (APEC) countries from 1981 to 2000. It focuses on the
 effects of three aspects of financial development on growth: stock market,
 banking sector and capital flow. To control for the country-specific
 effect, the model is further estimated for the developed and developing
 member countries. Results suggest that among the three financial sectors,
 only the stock market development shows strong growth-enhancing effect,
 especially among the developed member countries. This positive
 relationship remains very robust even after controlling for the
 simultaneity bias. Thus, there is no evidence to suggest that the level of
 financial infrastructure development does affect the overall
 finance-growth relationship observed in this study. 
Journal: Applied Economics 
Pages: 1889-1904 
Issue: 16 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427239 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427239 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1889-1904




Template-Type: ReDIF-Article 1.0
Author-Name: Bang Nam Jeon 
Author-X-Name-First: Bang Nam 
Author-X-Name-Last: Jeon 
Author-Name: Kyeong Seok Han 
Author-X-Name-First: Kyeong Seok 
Author-X-Name-Last: Han 
Author-Name: Myung Jin Lee 
Author-X-Name-First: Myung Jin 
Author-X-Name-Last: Lee 
Title: Determining factors for the adoption of e-business: the case of SMEs in Korea 
Abstract:
  This study investigates the determining factors of the successful
 adoption of e-business by small and medium enterprises (SMEs) in Korea
 using survey data. After the major determining factors were identified
 from the innovation adoption literature and were extracted by applying the
 principal component analysis to the survey data and by adding the
 country-specific characteristics of Korea, we conducted empirical analyses
 to determine the critical success factors for the adoption of e-business
 by Korean firms. The empirical results which are based on t-tests of the
 differences between adopters and non-adopters, the linear probability
 model, and the logit model, all suggest that the important determinants of
 the successful adoption of e-business by SMEs in Korea are: the CEO's
 knowledge of information technology (IT)/e-business, relative advantages
 and benefits from implementing e-business, governmental support,
 globalization strategy and the North Korean factor. Business size, the
 cost of e-business adoption and competitive pressure of the industry do
 not seem to play an important role in the adoption of e-business by Korean
 SMEs. The policy implications of this study on promoting e-business
 adoption by SMEs in emerging economies, such as Korea, are also discussed. 
Journal: Applied Economics 
Pages: 1905-1916 
Issue: 16 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427262 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427262 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1905-1916




Template-Type: ReDIF-Article 1.0
Author-Name: Bahram Adrangi 
Author-X-Name-First: Bahram 
Author-X-Name-Last: Adrangi 
Author-Name: A. Chatrath 
Author-X-Name-First: A. 
Author-X-Name-Last: Chatrath 
Author-Name: Frank Song 
Author-X-Name-First: Frank 
Author-X-Name-Last: Song 
Author-Name: Ferenc Szidarovszky 
Author-X-Name-First: Ferenc 
Author-X-Name-Last: Szidarovszky 
Title: Petroleum spreads and the term structure of futures prices 
Abstract:
  We employ the term structure of gasoline and heating oil prices, proxied
 by convenience yields, to explain the variation in the spread between the
 prices of gasoline and crude oil and the prices of heating oil and crude
 oil. We demonstrate that the marginal convenience yields in the gasoline
 and heating oil markets explained much of the variation in the spreads
 between 1986 and 1999. The evidence indicates the importance of a
 disaggregated treatment of the term structure of prices: the convenience
 yield is found to explain a substantially higher amount of the variation
 in the spread when it is decomposed by maturity, even after controls for
 seasonality and inventory levels are implemented. These findings support
 the notion that the futures term structure contains information beyond
 what can be garnered via obvious or easily available proxies of current
 supply and demand. The findings are also supported in an alternate
 specification that tests for the origins of information spillover
 (leadership) between the commodities: it is demonstrated that decomposed
 convenience yields explain a substantial portion of the volatility
 spillover from the gasoline and heating oil markets to the crude market. 
Journal: Applied Economics 
Pages: 1917-1929 
Issue: 16 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427189 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427189 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1917-1929




Template-Type: ReDIF-Article 1.0
Author-Name: M. Angeles Caraballo 
Author-X-Name-First: M. Angeles 
Author-X-Name-Last: Caraballo 
Author-Name: Carlos Dabus 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Dabus 
Author-Name: Carlos Usabiaga 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Usabiaga 
Title: Relative prices and inflation: new evidence from different inflationary contexts 
Abstract:
  This paper analyses the relationship between inflation and relative price
 variability, in the direction of the latter, in two countries with very
 different inflationary experiences: Argentina and Spain. To address this
 objective, using disaggregated price indexes (the Wholesale Price Index
 for Argentina and the Consumer Price Index for Spain), we delimitate
 different inflationary regimes and compute a set of regressions for each
 country. Our results suggest evidence in favour of the non-neutrality of
 inflation (mostly in hyperinflation periods) and do not support either the
 menu costs or the signal extraction approaches. We also detect significant
 structural changes in the relationship depending on the inflationary
 regime. 
Journal: Applied Economics 
Pages: 1931-1944 
Issue: 16 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427171 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427171 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1931-1944




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Gravel 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Gravel 
Author-Name: Alessandra Michelangeli 
Author-X-Name-First: Alessandra 
Author-X-Name-Last: Michelangeli 
Author-Name: Alain Trannoy 
Author-X-Name-First: Alain 
Author-X-Name-Last: Trannoy 
Title: Measuring the social value of local public goods: an empirical analysis within Paris metropolitan area 
Abstract:
  A non-linear hedonic model is used to estimate the implicit marginal
 prices of 17 local public goods in a Paris suburban area on an original
 data set of some 8200 housing units. The results reveal a robust effect of
 local public school quality (measured both by the fraction of junior high
 school students that are at least two years behind grade level and the
 student/teacher ratio) on house prices. It is observed that housing
 owners' marginal willingness to pay for reducing commuting time is roughly
 similar for public transportation than for car transportation. Another
 noticeable result is the complete capitalization of local taxes at a
 discount rate of 3.5%. An illustration of the potential usefulness of the
 results for Cost-Benefit analysis is also provided. 
Journal: Applied Economics 
Pages: 1945-1961 
Issue: 16 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427213 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427213 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1945-1961




Template-Type: ReDIF-Article 1.0
Author-Name: Radislav Semenov 
Author-X-Name-First: Radislav 
Author-X-Name-Last: Semenov 
Title: Financial systems, financing constraints and investment: empirical analysis of OECD countries 
Abstract:
  This paper investigates the influence of cash flow on corporate
 investment in 11 OECD countries. We find that the sensitivity of
 investment levels to internally available funds differs significantly
 across countries, and is lower in countries with predominantly close
 bank-firm relationships than in countries with predominantly arm's-length
 bank-firm relationships. At the same time, we find no relationship of the
 levels of financial constraints to indicators of overall financial
 development. Our results are consistent with the view that information and
 incentive problems in the capital market have important effects on
 corporate investment, and that close bank-firm relationships can reduce
 these problems and thus improve the access of firms to external finance. 
Journal: Applied Economics 
Pages: 1963-1974 
Issue: 17 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427122 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427122 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:1963-1974




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Dead man walking: an empirical reassessment of the deterrent effect of capital punishment using the bounds testing approach to cointegration 
Abstract:
  This paper empirically estimates a murder supply equation for the United
 States from 1965 to 2001 within a cointegration and error correction
 framework. Our findings suggest that any support for the deterrence
 hypothesis is sensitive to the inclusion of variables for the effects of
 guns and other crimes. In the long run we find that real income and the
 conditional probability of receiving the death sentence are the main
 factors explaining variations in the homicide rate. In the short run the
 aggravated assault rate and robbery rate are the most important
 determinants of the homicide rate. 
Journal: Applied Economics 
Pages: 1975-1989 
Issue: 17 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427288 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427288 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:1975-1989




Template-Type: ReDIF-Article 1.0
Author-Name: Harry Anthony Patrinos 
Author-X-Name-First: Harry Anthony 
Author-X-Name-Last: Patrinos 
Author-Name: Chris Sakellariou 
Author-X-Name-First: Chris 
Author-X-Name-Last: Sakellariou 
Title: Economic volatility and returns to education in Venezuela: 1992-2002 
Abstract:
  Preliminary evidence suggests that the rates of return to education in
 Venezuela have been declining since the 1970s. This study rigorously
 estimates the returns to education in Venezuela for the period 1992 to
 2002 and links them to earlier available estimates from the 1980s.
 Consistent cross-sections from the Encuesta de Hogares por Muestro are
 used to document falling returns to schooling and educational levels until
 the mid-1990s, followed by increasing returns thereafter. Quantile
 regression analysis is used to provide further insight into the within
 skill group changes in returns over time. 
Journal: Applied Economics 
Pages: 1991-2005 
Issue: 17 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427338 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427338 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:1991-2005




Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Morana 
Author-X-Name-First: Claudio 
Author-X-Name-Last: Morana 
Title: The price stability oriented monetary policy of the ECB: an assessment 
Abstract:
  The definition of price stability adopted by the ECB has recently been
 criticized in the literature, particularly for being unable to fully
 anchor inflation expectations and creating a deflation risk. In the paper
 empirical evidence is provided against these claims. Despite the
 unfavourable macroeconomic conditions for the euro area since 2001,
 monetary policy management has lead to the setting of the policy rate at
 levels compatible with trend inflation (the long-run inflation forecast)
 in the range 1-3%, and therefore without affecting negatively the
 inflation outlook. 
Journal: Applied Economics 
Pages: 2007-2020 
Issue: 17 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427312 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427312 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2007-2020




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Belen Gracia Andia 
Author-X-Name-First: Ana Belen Gracia 
Author-X-Name-Last: Andia 
Author-Name: Maria Dolores Gadea Rivas 
Author-X-Name-First: Maria Dolores Gadea 
Author-X-Name-Last: Rivas 
Author-Name: Jose Maria Serrano Sanz 
Author-X-Name-First: Jose Maria Serrano 
Author-X-Name-Last: Sanz 
Title: The effects of macroeconomic stability on foreign trade. An analysis for Spain, 1986-2000 
Abstract:
  Two main factors underlie the rebirth of interest in the study of the
 influence of the real exchange rate on trade, the reduction of its
 volatility and the current trend towards price stability. The objective of
 this study is to analyse the effects of the process of nominal
 convergence, required of the European member states for the fulfilment of
 monetary integration, on foreign trade flows. The case of Spain, which is
 especially interesting in this context, is studied for the period 1986 to
 2000. The results of estimating the aggregate functions of the export and
 import of goods shows how macroeconomic stability has altered the
 behaviour of trade with respect to the two basic determinants - income and
 prices - how it has caused a significant structural change in the real
 exchange rate and, finally, how it has laid the explanatory bases for
 transactions in the twenty-first century with the single currency - the
 euro. 
Journal: Applied Economics 
Pages: 2021-2036 
Issue: 17 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427395 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427395 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2021-2036




Template-Type: ReDIF-Article 1.0
Author-Name: David Leece 
Author-X-Name-First: David 
Author-X-Name-Last: Leece 
Title: Testing a theoretical model of mortgage demand on UK data 
Abstract:
  Mortgage demand is a poorly understood and under-researched aspect of the
 financial behaviour of households. This paper tests empirically the basic
 results of Brueckner's model of mortgage demand on UK mortgage market
 data. The choice of mortgage instrument is used to identify impatient debt
 maximizers and patient borrowers who borrow at intermediate levels. Thus
 the research confirms the conditions under which households will use the
 largest possible mortgage and the circumstances under which savings are
 invested in the property. A unique contribution of the work is the
 estimation of mortgage demand equations corrected for endogenous housing
 demand, for a single housing finance system, where borrowers face
 different opportunity costs of equity in their owner occupied property,
 allowing a purer test of the theoretical model. 
Journal: Applied Economics 
Pages: 2037-2051 
Issue: 17 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500426959 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426959 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2037-2051




Template-Type: ReDIF-Article 1.0
Author-Name: Camille Logeay 
Author-X-Name-First: Camille 
Author-X-Name-Last: Logeay 
Author-Name: Sven Schreiber 
Author-X-Name-First: Sven 
Author-X-Name-Last: Schreiber 
Title: Testing the effectiveness of the French work-sharing reform: a forecasting approach 
Abstract:
  The macroeconomic impact of the French work-sharing reform of 2000 (a
 reduction of standard working hours in combination with wage subsidies) is
 analysed. Using a vector error correction model (VECM) for several labour
 market variables, as well as inflation and output, out-of-sample forecasts
 for 2000/2001 are produced. A comparison of these forecasts - which serve
 as a benchmark simulation without structural shifts - to the realized
 values (with shifts) suggests significant beneficial employment effects of
 the policy mix. Other shifts were absent and thus cannot explain the
 outcome. Output, productivity, hourly labour costs, and inflation are only
 transitorily affected or not at all. 
Journal: Applied Economics 
Pages: 2053-2068 
Issue: 17 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427031 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427031 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2053-2068




Template-Type: ReDIF-Article 1.0
Author-Name: Shikuan Chen 
Author-X-Name-First: Shikuan 
Author-X-Name-Last: Chen 
Author-Name: Ming-Jen Chang 
Author-X-Name-First: Ming-Jen 
Author-X-Name-Last: Chang 
Title: Relative prices and expenditure switching effect 
Abstract:
  This study examines the impact of a monetary shock on a two-country,
 asymmetrical size general equilibrium model. It is assumed that prices are
 sticky in the producer's currency, and find that the expenditure switching
 effect is not significant. 
Journal: Applied Economics 
Pages: 2069-2073 
Issue: 17 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600895707 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600895707 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2069-2073




Template-Type: ReDIF-Article 1.0
Author-Name: Evan Kraft 
Author-X-Name-First: Evan 
Author-X-Name-Last: Kraft 
Author-Name: Richard Hofler 
Author-X-Name-First: Richard 
Author-X-Name-Last: Hofler 
Author-Name: James Payne 
Author-X-Name-First: James 
Author-X-Name-Last: Payne 
Title: Privatization, foreign bank entry and bank efficiency in Croatia: a Fourier-flexible function stochastic cost frontier analysis 
Abstract:
  Using bank balance sheet data for Croatia for 1994 to 2000, this study
 estimates a Fourier-flexible frontier cost function. Specification tests
 indicate that the stochastic frontier model with a Fourier-flexible form
 with a truncated normal distribution of the inefficiency term allowing for
 time varying cost efficiency is preferred. The results show that new
 private and privatized banks, contrary to some expectations, are not the
 most efficient banks through most of the period. Privatization also does
 not seem to have an immediate effect on improved efficiency. However,
 better cost efficiency is associated with a lower likelihood of failure,
 suggesting that better risk management and better cost management are
 signs of better management in general. Finally, foreign banks have
 substantially better efficiency scores than all categories of domestic
 banks. 
Journal: Applied Economics 
Pages: 2075-2088 
Issue: 17 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2075-2088




Template-Type: ReDIF-Article 1.0
Author-Name: Linda Yueh 
Author-X-Name-First: Linda 
Author-X-Name-Last: Yueh 
Title: Parental investment in children's human capital in urban China 
Abstract:
  The present study tests the extent of parental forgone consumption used
 instead to invest in children's human capital by use of intrahousehold
 resource allocation models. Using an unusual, comprehensive data set for
 urban China, there is more spending on boys aged 13 to 15 but more on
 girls aged 16 to 18, suggesting that standard human capital theories and
 traditional perceptions of gender bias do not completely explain
 educational expenditure decisions. The evidence from urban China is
 consistent, though, with human capital models which consider parental
 intertemporal preferences. Also, the findings suggest that the perceived
 bias in favour of sons exists weakly in contemporary urban China. 
Journal: Applied Economics 
Pages: 2089-2111 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2089-2111




Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Verhaest 
Author-X-Name-First: Dieter 
Author-X-Name-Last: Verhaest 
Author-Name: Eddy Omey 
Author-X-Name-First: Eddy 
Author-X-Name-Last: Omey 
Title: Discriminating between alternative measures of over-education 
Abstract:
  Five over-education measures are evaluated empirically on the basis of
 encompassing tests. The measures are based on job analysis (JA),
 worker-assessment of the required level to do the job (WAd),
 worker-assessment of the required level to get the job (WAg), the mean
 educational level of realized matches (RMmn), and the modal level of
 realized matches (RMml). Over- and under-education are linked to wages,
 job satisfaction, mobility and training participation. For none of the
 outcome variables, the JA model is encompassed by another model. Given the
 risk on systematic errors, this is a sufficient condition to prefer a
 carefully conducted JA to any other measure. The most reliable solution is
 to use the JA measure as an instrument for the WAd measure. 
Journal: Applied Economics 
Pages: 2113-2120 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427387 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427387 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2113-2120




Template-Type: ReDIF-Article 1.0
Author-Name: Alessandra Ferrari 
Author-X-Name-First: Alessandra 
Author-X-Name-Last: Ferrari 
Title: The internal market and hospital efficiency: a stochastic distance function approach 
Abstract:
  The UK internal market was one of the first European attempts to
 introduce a competitive mechanism in the provision of hospital services.
 The assumption was that competition would have led hospitals to increase
 efficiency in the use of their resources. The aim of this paper is to
 analyse the effectiveness of this kind of reform by measuring the changes
 in technical efficiency of a panel of 52 acute Scottish hospitals observed
 from 1991/92 to 1996/97. The time period covers the whole duration of the
 internal market and the sample contains a different mix of both trusts and
 non-trusts, where the former embed the proper working of the reform. The
 selected model is a stochastic output distance function that includes an
 interaction dummy variable to allow for parameters to change over time.
 The results show a structural break after which hospitals change not only
 the way in which they provide their services, but also the kind of
 services they provide, favouring the quicker treatment of patients on a
 day basis. No significant improvement in technical efficiency is detected
 instead over time, nor any significant difference in efficiency between
 trusts and non-trusts. 
Journal: Applied Economics 
Pages: 2121-2130 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427437 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427437 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2121-2130




Template-Type: ReDIF-Article 1.0
Author-Name: Logan McLeod 
Author-X-Name-First: Logan 
Author-X-Name-Last: McLeod 
Author-Name: Michael Veall 
Author-X-Name-First: Michael 
Author-X-Name-Last: Veall 
Title: The dynamics of food insecurity and overall health: evidence from the Canadian National Population Health Survey 
Abstract:
  The paper explores whether the responses to household food insecurity
 questions in cycles two and three of the Canadian National Population
 Health Survey help explain the links between socioeconomic status and
 health at the individual level. Short-term transitions in food insecurity
 status are correlated with changes in health status. There is some
 evidence for females but not for males that conditional on current health,
 current household food insecurity can lead to lower future health status,
 even in the short run. There is stronger evidence for both males and
 females that conditional on current household food insecurity status,
 lower current health status can lead to an increased probability of future
 household food insecurity. 
Journal: Applied Economics 
Pages: 2131-2146 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427429 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427429 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2131-2146




Template-Type: ReDIF-Article 1.0
Author-Name: Mao-Wei Hung 
Author-X-Name-First: Mao-Wei 
Author-X-Name-Last: Hung 
Author-Name: Hsiao-Yuan Yu 
Author-X-Name-First: Hsiao-Yuan 
Author-X-Name-Last: Yu 
Title: A heterogeneous model of disposition effect 
Abstract:
  A portfolio choice model is provided to illustrate the disposition effect
 under irrational belief in mean reversion assumption. Higher cognitive
 reference, stronger irrational belief in mean reversion magnitude and less
 risk aversion all strengthen the disposition effect in the model. The
 equilibrium market interest rate is priced after the market clearing
 condition is employed. The grater disposition effect reduces the capital
 mobility from the stock market to the bond market and thus mitigates the
 dropping of the market interest rate. 
Journal: Applied Economics 
Pages: 2147-2157 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427403 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427403 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2147-2157




Template-Type: ReDIF-Article 1.0
Author-Name: Carmelo Leon 
Author-X-Name-First: Carmelo 
Author-X-Name-Last: Leon 
Author-Name: Juan Hernandez 
Author-X-Name-First: Juan 
Author-X-Name-Last: Hernandez 
Author-Name: Miguel Leon-Santana 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Leon-Santana 
Title: The effects of water temperature in aquaculture management 
Abstract:
  This study examines the impact of water temperature on the optimal
 management of the ration size and fish weight in off-shore farm
 aquaculture. A model for the expected returns of the farm is developed
 which includes a fish growth function influenced by fish weight, the
 ration size and water temperature. The output transportation cost has an
 ambiguous effect on the harvesting size, but the impact of water
 temperature is positive. These results explain empirical evidence in the
 Canary Islands that unfavourable economic conditions could be overcome by
 environmental advantageous conditions raising productivity. 
Journal: Applied Economics 
Pages: 2159-2168 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427379 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2159-2168




Template-Type: ReDIF-Article 1.0
Author-Name: Alan de Brauw 
Author-X-Name-First: Alan 
Author-X-Name-Last: de Brauw 
Title: The Kyoto Protocol, market power, and enforcement 
Abstract:
  The Kyoto Protocol aims to limit aggregate carbon emissions by
 participating countries to 1990 emissions levels in aggregate. It also
 allows for the creation of a permit market in which countries will be able
 to buy and sell the right to emit carbon dioxide. This paper investigates
 how market power, held by the countries of the former Soviet Union, and
 enforcement of the carbon emission limits might affect the abatement and
 the cost of compliance with the Kyoto Protocol. To do so, it uses a
 modified version of the van Egteren-Weber (1996) model to investigate a
 permit market in the presence of both market power and enforcement
 difficulties. It then simulates the model, finding that if meeting
 abatement targets is the goal, regulating the supply side of the market
 and convex fine schedules are the most effective tools. 
Journal: Applied Economics 
Pages: 2169-2178 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600895442 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600895442 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2169-2178




Template-Type: ReDIF-Article 1.0
Author-Name: Victor Claar 
Author-X-Name-First: Victor 
Author-X-Name-Last: Claar 
Title: Is the NAIRU more useful in forecasting inflation than the natural rate of unemployment? 
Abstract:
  Recent studies have indicated that the terms 'NAIRU' (non-accelerating
 inflation rate of unemployment) and 'natural rate of unemployment' are not
 interchangeable. While NAIRU is an empirical macroeconomic relationship
 estimated via a Phillips curve, the natural rate is an equilibrium
 condition in the labour market, reflecting the market's microeconomic
 features. This study evaluates comparatively the inflation-forecasting
 power of alternative time-varying estimates of the natural rate of
 unemployment relative to the NAIRU. The natural rate of unemployment in
 the USA since the Second World War is estimated. Three alternative methods
 are utilized: the Kalman filter, a structural determinants approach, and
 the Hodrick-Prescott filter. The section that follows assesses how each
 estimator of the natural rate compares with the others - as well as with
 the NAIRU derived from a Phillips curve - in forecasting inflationary
 changes in the USA in the second half of the twentieth century. The
 analysis reveals that the overall inflation-forecasting utility of the
 natural rate of unemployment relative to the NAIRU is not very different.
 Moreover, the conclusion appears to be quite robust to various estimators
 of the natural rate. 
Journal: Applied Economics 
Pages: 2179-2189 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600701061 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600701061 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2179-2189




Template-Type: ReDIF-Article 1.0
Author-Name: Pilar Poncela 
Author-X-Name-First: Pilar 
Author-X-Name-Last: Poncela 
Author-Name: Eva Senra 
Author-X-Name-First: Eva 
Author-X-Name-Last: Senra 
Title: A two factor model to combine US inflation forecasts 
Abstract:
  The combination of individual forecasts is often a useful tool to improve
 forecast accuracy. The most commonly used technique for forecast
 combination is the mean, and it has frequently proved hard to surpass.
 This study considers factor analysis to combine US inflation forecasts
 showing that just one factor is not enough to beat the mean and that the
 second one is necessary. The first factor is usually a weighted mean of
 the variables and it can be interpreted as a consensus forecast, while the
 second factor generally provides the differences among the variables and,
 since the observations are forecasts, it may be related with the
 dispersion in forecasting expectations and, in a sense, with its
 uncertainty. Within this approach, the study also revisits Friedman's
 hypothesis relating the level of inflation with expectations uncertainty
 at the beginning of the twenty-first century. 
Journal: Applied Economics 
Pages: 2191-2197 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427296 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427296 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2191-2197




Template-Type: ReDIF-Article 1.0
Author-Name: Erdinc Telatar 
Author-X-Name-First: Erdinc 
Author-X-Name-Last: Telatar 
Author-Name: Mubariz Hasanov 
Author-X-Name-First: Mubariz 
Author-X-Name-Last: Hasanov 
Title: The asymmetric effects of monetary shocks: the case of Turkey 
Abstract:
  This paper examines whether there is an asymmetry in the effects of
 positive versus negative and small versus big money supply shocks, and
 whether the effects of the shocks on output and prices vary over the
 business cycles in the case of Turkey. Negative shocks to money are found
 to have greater output and smaller price effects compared to the effects
 of positive shocks, irrespective of the initial state of the economy. It
 is also found that monetary shocks of different size affect output growth
 and inflation rates proportionately. These findings can be interpreted as
 evidence for the view that the short run aggragate supply curve is convex
 in such a country like Turkey. 
Journal: Applied Economics 
Pages: 2199-2208 
Issue: 18 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427411 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427411 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2199-2208




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Temporal causality and the dynamics of judicial appellate caseload, real income and socio-economic complexity in Australia 
Abstract:
  This study applies Granger causality tests within a multivariate error
 correction framework to examine the relationship between judicial
 caseload, real income and urbanization for Australia using annual data
 from 1904 to 2001. Decomposition of variance and impulse response
 functions are also considered. The Granger causality results as well as
 the decomposition of variance and impulse response functions suggest that
 urbanization is the most exogenous of the three variables in both the long
 run and short run while judicial caseload and real income are relatively
 exogenous in the short run. 
Journal: Applied Economics 
Pages: 2209-2219 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427569 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427569 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2209-2219




Template-Type: ReDIF-Article 1.0
Author-Name: Kelvin Balcombe 
Author-X-Name-First: Kelvin 
Author-X-Name-Last: Balcombe 
Author-Name: Iain Fraser 
Author-X-Name-First: Iain 
Author-X-Name-Last: Fraser 
Author-Name: Jae Kim 
Author-X-Name-First: Jae 
Author-X-Name-Last: Kim 
Title: Estimating technical efficiency of Australian dairy farms using alternative frontier methodologies 
Abstract:
  Technical efficiency is estimated and examined for a cross-section of
 Australian dairy farms using various frontier methodologies; Bayesian and
 Classical stochastic frontiers, and Data Envelopment Analysis. The results
 indicate technical inefficiency is present in the sample data. Also
 identified are statistical differences between the point estimates of
 technical efficiency generated by the various methodologies. However, the
 rank of farm level technical efficiency is statistically invariant to the
 estimation technique employed. Finally, when confidence/credible intervals
 of technical efficiency are compared significant overlap is found for many
 of the farms' intervals for all frontier methods employed. The results
 indicate that the choice of estimation methodology may matter, but the
 explanatory power of all frontier methods is significantly weaker when
 interval estimate of technical efficiency is examined. 
Journal: Applied Economics 
Pages: 2221-2236 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427445 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427445 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2221-2236




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Ezcurra 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Ezcurra 
Author-Name: Pedro Pascual 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Pascual 
Author-Name: Manuel Rapun 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Rapun 
Title: Regional mobility in the European Union 
Abstract:
  Regional mobility in the spatial distribution of per capita income in the
 European Union is examined over the period 1977 to 1999. The methodology
 used to investigate this issue combines a series of measures taken from
 the literature devoted to the dynamic study of personal income
 distribution with a non-parametric analysis. The results show limited
 mobility in the distribution considered, and a decline in mobility over
 time. The empirical evidence presented indicates, moreover, that mobility
 patterns vary as a function of regional development levels. Additionally,
 the analysis carried out investigates the role played in explaining
 intra-distribution mobility by variables such as per capita income,
 population density, per capita expenditure in investment, market
 potential, and the share in total employment of agriculture, advanced
 services and non-market services. 
Journal: Applied Economics 
Pages: 2237-2253 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427494 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427494 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2237-2253




Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Staat 
Author-X-Name-First: Matthias 
Author-X-Name-Last: Staat 
Title: Efficiency of hospitals in Germany: a DEA-bootstrap approach 
Abstract:
  Various attempts to assess the performance of German hospitals have
 generated a wide range of estimates regarding their efficiency. These
 attempts were based on different, often rather small data sets consisting
 of heterogeneous hospitals; the techniques applied range from simple
 benchmarking approaches to studies which employ Data Envelopment Analysis
 (DEA). Some studies report 'dramatic differences in efficiency' and
 propose savings potentials of 50%; others find an average efficiency in
 excess of 95% and characterize almost 75% of their observations as fully
 efficient. This study presents results for two datasets representative of
 two segments of the German hospital system. These segments comprise all
 hospitals that have one internal medicine and one surgery department; the
 hospitals are located in the old federal states of Germany. None of the
 hospitals provides tertiary care. DEA can be applied because all hospitals
 offer a comparable quality and range of services. The results were
 estimated with a DEA-bootstrapping procedure and suggest an average
 bias-corrected efficiency of around 80%. 
Journal: Applied Economics 
Pages: 2255-2263 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427502 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427502 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2255-2263




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Speight 
Author-X-Name-First: Alan 
Author-X-Name-Last: Speight 
Author-Name: Piers Thompson 
Author-X-Name-First: Piers 
Author-X-Name-Last: Thompson 
Title: Is investment time irreversible? Some empirical evidence for disaggregated UK manufacturing data 
Abstract:
  It has long been suggested that investment may be time irreversible, and
 consideration of the option value of waiting to invest has aroused renewed
 interest in this issue. This study tests for time irreversibility in UK
 investment according to disaggregation by type of investment expenditure
 and across manufacturing sector groupings. The test results reported
 indicate that the irreversibility of investment patterns varies not only
 from industry to industry but also according to the type of capital being
 purchased, with significant time irreversibility detected in gross fixed
 capital formation and aggregate vehicles expenditure, and industrial
 sector groupings comprising fuels and oil refining, engineering and
 vehicles, and textiles and leather. However, only in the first and last of
 these series is time irreversibility attributable to non-linearities in
 the underlying data generating process, and consistent with threshold
 effects which may be associated with (S,s) type models of investment
 dynamics. 
Journal: Applied Economics 
Pages: 2265-2275 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427551 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427551 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2265-2275




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Chien-Chung Nieh 
Author-X-Name-First: Chien-Chung 
Author-X-Name-Last: Nieh 
Author-Name: Ching-Chun Wei 
Author-X-Name-First: Ching-Chun 
Author-X-Name-Last: Wei 
Title: Analysis of long-run benefits from international equity diversification between Taiwan and its major European trading partners: an empirical note 
Abstract:
  This paper employs four cointegration test approaches, PO, HI, JJ and
 KSS, to test for pairwise long-run equilibrium relationships between
 Taiwan's stock price index and each of the stock price indexes of four
 European markets - French, German, Dutch, and British stock markets. The
 results from these four tests are robust and clearly consistent in
 suggesting that the Taiwan stock market is not pairwise cointegrated with
 the four European stock markets. This provides strong evidence that there
 exist long-run benefits for Taiwan investors diversifying in the equity
 markets of Taiwan's major European trading partners, France, Germany,
 Holland, and the UK, over the sample period considered from 6 January 1998
 to 30 May 2002. These findings could be valuable to Taiwan individual
 investors and financial institutions holding long-run investment
 portfolios in the equity markets of France, Germany, Holland, and the UK. 
Journal: Applied Economics 
Pages: 2277-2283 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427510 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427510 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2277-2283




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Vermeir 
Author-X-Name-First: Jan 
Author-X-Name-Last: Vermeir 
Author-Name: Bruno Heyndels 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Heyndels 
Title: Tax policy and yardstick voting in Flemish municipal elections 
Abstract:
  Recent theoretical papers develop political agency models in which voters
 compare tax policy with that in neighbouring jurisdictions. In these
 yardstick competition models voters judge incumbents by comparing their
 policy with policy in neighbouring jurisdictions. This paper reports an
 analysis of municipal elections in Flanders during the period 1982 to 2000
 and finds empirical evidence for yardstick voting. Incumbents are punished
 for higher tax rates. Importantly, the electoral punishment also depends
 on tax rates in neighbouring municipalities. Higher rates in neighbouring
 municipalities are favourable for the incumbents. 
Journal: Applied Economics 
Pages: 2285-2298 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427536 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427536 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2285-2298




Template-Type: ReDIF-Article 1.0
Author-Name: Nancy Kong 
Author-X-Name-First: Nancy 
Author-X-Name-Last: Kong 
Author-Name: Jose Tongzon 
Author-X-Name-First: Jose 
Author-X-Name-Last: Tongzon 
Title: Estimating total factor productivity growth in Singapore at sectoral level using data envelopment analysis 
Abstract:
  Trends in total factor productivity growth (TFPG) are examined in the ten
 major sectors of Singapore. Data are drawn from the Yearbook of
 Statistics, Singapore, (various issues) and Economic Survey of Singapore
 series ranging from the year 1985 to 2000. Due to the heterogeneous
 characteristic of each sector and non-availability of reliable input price
 data, this study uses a non-parametric, frontier methodology known as data
 envelopment analysis (DEA) to obtain the Malmquist Productivity Index at
 the sectoral level. The results can help Singapore identify the 'best
 practice' sector and laggards in three aspects: efficiency change,
 technical change and TFPG, which is the qualitative productivity
 improvements needed for long-term economic growth. The three sets of
 productivity estimates are adjusted for effects of inflation and business
 cycles so that they are more reliable for policy implications. This
 exercise will provide a platform for more detailed study on the
 determinants of TFP growth in different sectors and at the firm level in
 Singapore. 
Journal: Applied Economics 
Pages: 2299-2314 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427544 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427544 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2299-2314




Template-Type: ReDIF-Article 1.0
Author-Name: Jorge Arana 
Author-X-Name-First: Jorge 
Author-X-Name-Last: Arana 
Author-Name: Carmelo Leon 
Author-X-Name-First: Carmelo 
Author-X-Name-Last: Leon 
Title: Modelling unobserved heterogeneity in contingent valuation of health risks 
Abstract:
  Human preferences for alternative levels of health risks can be
 heterogeneous. In this paper a flexible distribution approach to model
 health values elicited with the dichotomous choice contingent valuation
 method is considered. Rigid parametric structures cannot model sample
 heterogeneity while imposing strong assumptions on the error distribution.
 A mixture of normal distributions is considered which can approximate
 arbitrary well any empirical distributions as the number of mixtures
 increases. The model is applied to data on willingness to pay for reducing
 the individual risk of an episode of respiratory illness. The mixture
 distribution model is compared with the rigid probit model using a Bayes
 factor test. The results show that the mixture modelling approach improves
 performance while allowing for the consideration of alternative groups of
 individuals with different preferences for health risks. 
Journal: Applied Economics 
Pages: 2315-2325 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427460 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427460 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2315-2325




Template-Type: ReDIF-Article 1.0
Author-Name: Joo-Suk Lee 
Author-X-Name-First: Joo-Suk 
Author-X-Name-Last: Lee 
Author-Name: Seung-Hoon Yoo 
Author-X-Name-First: Seung-Hoon 
Author-X-Name-Last: Yoo 
Author-Name: Seung-Jun Kwak 
Author-X-Name-First: Seung-Jun 
Author-X-Name-Last: Kwak 
Title: Consumers' preferences for the attributes of post-PC: results of a contingent ranking study 
Abstract:
  With the explosive growth of the internet and the change in consumer
 demand, post-PC is emerging as a substitute for the existing desktop PC
 and laptop PC. post-PC is a new computer which is portable with wireless
 networking, cheaper than the existing PC and specializing in the specific
 functions that consumers want. Rudimentary post-PCs such as PDA, web-pad
 and smart-phone are already in use. In the future, owing to technological
 progress, the heterogeneity of related companies and the low entry
 barrier, various post-PCs will be developed. This paper attempts to
 analyse consumers' willingness-to-pay (WTP) for post-PC with such
 attributes as portability, CPU speed, data input method (using key board
 or electric pen), monitor size, and price. To this end, a contingent
 ranking method is applied, which makes the respondents rank hypothetical
 post-PC alternatives featuring various combinations of attributes, via a
 survey data collected in Korea. Using the estimated WTP, the shape and the
 capacity of future post-PC are predicted and policy implications drawn for
 national- and company-level R&D strategies. 
Journal: Applied Economics 
Pages: 2327-2334 
Issue: 19 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427486 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427486 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2327-2334




Template-Type: ReDIF-Article 1.0
Author-Name: Laura Romeu Gordo 
Author-X-Name-First: Laura Romeu 
Author-X-Name-Last: Gordo 
Title: Effects of short- and long-term unemployment on health satisfaction: evidence from German data 
Abstract:
  The purpose of this study is to analyse the effects of short- and
 long-term unemployment on health satisfaction. The data source used for
 the analysis is the German Socio-Economic Panel (GSOEP) which, given its
 longitudinal structure, allows one to better overcome the problem of
 endogeneity. Three different models are used in order to assess the effect
 of short and long-term unemployment and reemployment on health
 satisfaction. The results show that short-term unemployment has only a
 significant (and negative) effect for men, while for women short-term
 unemployment does not have a significant effect on health satisfaction.
 Being unemployed for a long period has a significant and negative effect
 for both men and women. Finally, it can be also concluded from the
 empirical analysis that reemployment has a significant and positive effect
 on health satisfaction for both unemployed men and women, independent of
 how long individuals have been unemployed. 
Journal: Applied Economics 
Pages: 2335-2350 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427692 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427692 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2335-2350




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: Angel Aguiar 
Author-X-Name-First: Angel 
Author-X-Name-Last: Aguiar 
Title: Effects of global trade liberalization on softwood lumber markets 
Abstract:
  This study develops a world spatial equilibrium softwood lumber model
 comprised of the major importing and exporting countries/regions to
 analyse the impacts of global trade reform on the world softwood lumber
 market. The results show that free trade leads to an increase in lumber
 trade, and Canadian producers and US consumers are the biggest
 beneficiaries. Trade liberalization improves the overall world welfare as
 world producer and consumer surpluses increase. The result highlights the
 importance of moving towards free trade in the global softwood lumber
 market. 
Journal: Applied Economics 
Pages: 2351-2360 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427619 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427619 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2351-2360




Template-Type: ReDIF-Article 1.0
Author-Name: Keun-Yeob Oh 
Author-X-Name-First: Keun-Yeob 
Author-X-Name-Last: Oh 
Author-Name: Bonghan Kim 
Author-X-Name-First: Bonghan 
Author-X-Name-Last: Kim 
Author-Name: Honkee Kim 
Author-X-Name-First: Honkee 
Author-X-Name-Last: Kim 
Title: An empirical study of the relation between stock price and EPS in panel data: Korea case 
Abstract:
  This study investigates the relationship between stock price and
 earnings-per-share using Korean stock market data. The nonstationarity of
 the data has been managed. In particular, recently developed panel
 cointegration techniques are used, which are known to be more powerful
 than individual cointegration methods. The tests applied to the panel data
 as a whole showed the cointegration relationship between the stock prices
 and EPS (earnings-per-share), while tests for the individual stock prices
 could not detect the cointegration. Therefore, there is now some evidence
 in support of weak mean-reversion for the PER (Price-Earnings Ratio).
 However, only mixed evidence was obtained for the hypothesis that the
 coefficient of EPS to the stock prices is equal to one. In short, stock
 prices do seem to move with firm fundamentals, in the long-run and on
 average, but not necessarily at the same rate. 
Journal: Applied Economics 
Pages: 2361-2369 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427593 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427593 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2361-2369




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Hawkins 
Author-X-Name-First: Richard 
Author-X-Name-Last: Hawkins 
Author-Name: Sally Wallace 
Author-X-Name-First: Sally 
Author-X-Name-Last: Wallace 
Title: Source of income effects for demand decisions and taxable consumption 
Abstract:
  The relationship between sources of income and demand decisions by the
 household is examined here with an eye toward the ramifications on
 consumption tax bases. Income sources may be important when households
 attach psychic and transaction costs to individual purchases or when
 sources are assigned via a mental accounting process. In either case,
 general and specific sales tax bases may be affected by changes in income
 composition. Empirical results indicate two important findings. First, tax
 exemptions can introduce significant income source effects for a general
 consumption tax base. Second, the importance of differential tax rates for
 gasoline and food-at-home strongly depends on the mix of labour, capital,
 retirement and non-retirement transfer pay. 
Journal: Applied Economics 
Pages: 2371-2379 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427528 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427528 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2371-2379




Template-Type: ReDIF-Article 1.0
Author-Name: Lila Truett 
Author-X-Name-First: Lila 
Author-X-Name-Last: Truett 
Author-Name: Dale Truett 
Author-X-Name-First: Dale 
Author-X-Name-Last: Truett 
Title: Production and costs in the South African motor vehicle industry 
Abstract:
  This study investigates the existence of economies of scale in the South
 African motor vehicle industry as well as the substitution possibilities
 between input pairs and the direct and cross-price elasticities of demand
 for the various inputs. Because of data limitations, a translog cost
 function was estimated for only a three input model corresponding to a
 homogeneous production function involving capital, labour and intermediate
 goods. The issue of the existence of economies of scale in the South
 African motor vehicle industry is a particularly important one because
 South Africa once again is a member of GATT and a full participant in the
 international trade arena. The null hypothesis of constant returns to
 scale was rejected at the 0.5% level of significance. Thus, the results of
 this model are certainly consistent with economies of scale in the South
 African motor vehicle industry. The estimated direct price elasticities
 were consistent with the hypothesis that, during the past two decades,
 capital was the productive factor with the most elastic demand, and the
 estimated cross-elasticities between input pairs generally supported the
 hypothesis that all inputs are substitutes. 
Journal: Applied Economics 
Pages: 2381-2392 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840600865734 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600865734 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2381-2392




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Javier de Miguel Velez 
Author-X-Name-First: Francisco Javier de Miguel 
Author-X-Name-Last: Velez 
Author-Name: Jesus Perez-Mayo 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Perez-Mayo 
Title: Linear SAM models for inequality changes analysis: an application to the Extremadurian economy 
Abstract:
  Social accounting matrices are adequate databases for the economic
 modelling. These matrices emphasize the role of households in the economy,
 and so, they usually disaggregate the household sector into several
 groups. This disaggregation allows social accounting matrices to be used
 for diverse income distribution analysis. The objective of this work is to
 use the linear SAM models to study how inequality is modified by several
 exogenous injections of income. The set of multipliers and indicators
 presented is applied to the economy of Extremadura - a region situated in
 the southwest of Spain. In particular, together with the accounting
 multipliers, two redistributed income matrices are presented to show how
 changes in final demand and in income transfers cause opposite effects in
 inequality. For contrasting these results, Gini and Theil indices are also
 used. Finally, a major reduction in both would result from an appropriate
 re-allocation of transfers. 
Journal: Applied Economics 
Pages: 2393-2403 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427825 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427825 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2393-2403




Template-Type: ReDIF-Article 1.0
Author-Name: Jaewoon Koo 
Author-X-Name-First: Jaewoon 
Author-X-Name-Last: Koo 
Author-Name: Kyunghee Maeng 
Author-X-Name-First: Kyunghee 
Author-X-Name-Last: Maeng 
Title: Foreign ownership and investment: evidence from Korea 
Abstract:
  This study examines whether an increase in foreign ownership affects
 investment in Korea. Many studies have shown that in an imperfect
 financial market, a firm's investment depends on the availability of
 internal funds. If high foreigners' shareholding is a sign of a firm's
 good financial position, and if foreign investors demand better corporate
 governance to protect their investments, then cash-flow sensitivity of
 investment decreases with the level of foreign ownership. Using data from
 Korean firms, it is found that cash-flow sensitivity of investment is
 lower in firms with high foreign ownership than in those with low foreign
 ownership. This finding is regarded as evidence for a potential benefit of
 open financial markets. 
Journal: Applied Economics 
Pages: 2405-2414 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427817 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427817 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2405-2414




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Wagner 
Title: Are nascent entrepreneurs 'Jacks-of-all-trades'? A test of Lazear's theory of entrepreneurship with German data 
Abstract:
  In a recent paper Edward Lazear proposed the 'Jack-of-all-trades' view of
 entrepreneurship. Based on a coherent model of the choice between
 self-employment and paid employment he shows that having a background in a
 large number of different roles increases the probability of becoming an
 entrepreneur. The intuition behind this proposition is that entrepreneurs
 must have sufficient knowledge in a variety of areas to put together the
 many ingredients needed for survival and success in a business, while for
 paid employees it suffices and pays to be a specialist in the field
 demanded by the job taken. This study contributes to the entrepreneurship
 literature by empirically testing Lazear's hypothesis using a large recent
 representative sample of the German population. The empirical estimation
 takes the rare events nature of becoming a nascent entrepreneur and the
 regional stratification of the sample into account. The results illustrate
 the statistical significance and economic importance of the
 'jack-of-all-trades' theory. 
Journal: Applied Economics 
Pages: 2415-2419 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427783 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427783 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2415-2419




Template-Type: ReDIF-Article 1.0
Author-Name: Haydar Sengul 
Author-X-Name-First: Haydar 
Author-X-Name-Last: Sengul 
Author-Name: Seda Sengul 
Author-X-Name-First: Seda 
Author-X-Name-Last: Sengul 
Title: Food consumption and economic development in Turkey and European Union countries 
Abstract:
  This study investigates the relationship between food consumption and
 economic development in Turkey and European Union countries. Differences
 in food diets are analysed by using data on per capita consumption in
 caloric terms based on the period from 1970 to 2000. The cluster analysis
 is employed to derive country grouping on the basis of similarities in
 dietary structure in the 1970 and 2000. Existence of a trend towards a
 common European diet is explored with Beta convergence. The empirical
 results show that per capita food consumption is becoming less responsive
 to changes in income and appears to be reaching a ceiling in the majority
 of EU countries and Turkey. However, the share of animal products in food
 consumption diet is low and income expenditure elasticity of animal
 products is higher with 0.84 values in Turkey than that in European
 countries in 2000. There are great differences in dietary structure
 between Turkey and the European Union. Differences also exist between
 European Union countries; however, despite these differences there is a
 general tendency for dietary structure to become increasingly similar
 across the majority of European Union countries. The result also supports
 the absence of a convergence towards a common diet if Turkey joins the
 European Union. 
Journal: Applied Economics 
Pages: 2421-2431 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427726 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427726 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2421-2431




Template-Type: ReDIF-Article 1.0
Author-Name: Juncal Cunado 
Author-X-Name-First: Juncal 
Author-X-Name-Last: Cunado 
Author-Name: Fernando Perez de Gracia 
Author-X-Name-First: Fernando Perez 
Author-X-Name-Last: de Gracia 
Title: Real convergence in some Central and Eastern European countries 
Abstract:
  This article examines the real convergence hypothesis in some Central and
 East European countries (both towards the German and the US economies) by
 means of using time series techniques during the period 1950 to 2003. No
 evidence is found of real convergence for the whole period. However, when
 one allows for structural breaks, evidence is found of a catch-up process
 during the 1990s to 2003 period for Poland, the Czech Republic and Hungary
 towards Germany and only for Poland towards the US economy. 
Journal: Applied Economics 
Pages: 2433-2441 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427718 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427718 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2433-2441




Template-Type: ReDIF-Article 1.0
Author-Name: Arzu Akkoyunlu-Wigley 
Author-X-Name-First: Arzu 
Author-X-Name-Last: Akkoyunlu-Wigley 
Author-Name: Sevinc Mihci 
Author-X-Name-First: Sevinc 
Author-X-Name-Last: Mihci 
Title: Effects of the customs union with the European Union on the market structure and pricing behaviour of the Turkish manufacturing industry 
Abstract:
  Turkey established a Customs Union with the European Union in 1996. This
 study aims to analyse the effect of that Customs Union on the market
 structure and the pricing behaviour of the Turkish manufacturing industry
 for the period 1994 to 2000. To that end, the price cost mark-up equation
 of 12 manufacturing industry sectors is estimated using the import and
 export ratios with European Union countries together with control
 variables. A second equation is also estimated for the concentration ratio
 index, taking the trade ratios with European Union countries as
 explanatory variables. The estimation method is panel data covering eight
 years and 12 cross-section units. Estimation outcomes indicate that the
 export and import ratios of trade with European Union countries have a
 negative relation with the price cost mark-up in the manufacturing sector.
 It is concluded that increased imports with union countries have created a
 positive wealth and efficiency effect upon the Turkish manufacturing
 industry, due to falling price cost mark-ups. Similarly, the concentration
 ratio equation estimation outcomes indicate that increased imports with
 union countries have induced a decline in the concentration ratio for the
 manufacturing industry during the period in question. 
Journal: Applied Economics 
Pages: 2443-2452 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427643 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2443-2452




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Hsu-Ling Chang 
Author-X-Name-First: Hsu-Ling 
Author-X-Name-Last: Chang 
Author-Name: Hsiao-Ping Chu 
Author-X-Name-First: Hsiao-Ping 
Author-X-Name-Last: Chu 
Author-Name: Chi-Wei Su 
Author-X-Name-First: Chi-Wei 
Author-X-Name-Last: Su 
Title: Does PPP hold in African countries? Further evidence based on a highly dynamic non-linear (logistic) unit root test 
Abstract:
  With a view to investigating whether the purchasing power parity (PPP)
 theory holds true for selected African countries during the January
 1980-December 2003 period, we employ a rigorous, highly dynamic non-linear
 (logistic) unit root test, as first advanced by Leybourne et al. (1998),
 which is considerably more powerful than those tests traditionally used.
 Compared with the rejection of the null of the unit root process for only
 one of the 22 countries under study when we use the traditional ADF, PP,
 KPSS, NP and the DF-GLS unit root tests, with the Leybourne et al. (1998)
 test, we strongly reject the null of the unit root process for a
 surprising six of the 22 countries. These empirical results clearly
 indicate that PPP holds true for these six countries, namely the Central
 African Republic, the Cote d'Ivoire, Kenya, Madagascar, Uganda and
 Lesotho. 
Journal: Applied Economics 
Pages: 2453-2459 
Issue: 20 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427890 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427890 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2453-2459




Template-Type: ReDIF-Article 1.0
Author-Name: G. Reza Arabsheibani 
Author-X-Name-First: G. Reza 
Author-X-Name-Last: Arabsheibani 
Author-Name: Alan Marin 
Author-X-Name-First: Alan 
Author-X-Name-Last: Marin 
Title: If not computers then what? Returns to computer use in the UK revisited 
Abstract:
  In recent years much attention has been paid to the effect on wages of
 skill-biased technology, especially the use of computers. Although
 empirical studies have shown a positive relationship between computer-use
 and earnings, doubts have been cast on whether this is a causal
 relationship or merely represents unobserved other factors, which are
 themselves positively linked to computer usage. This study provides
 evidence that computers themselves raise wages. Although their impact on
 wages falls as other controls are included in the regression, it still
 remains significant whilst the effect of another proxy for unobserved
 factors becomes insignificant. Furthermore, improvements in computer use
 have an additional impact on earnings, supporting the productivity
 interpretation. 
Journal: Applied Economics 
Pages: 2461-2467 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427668 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427668 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2461-2467




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Andren 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Andren 
Author-Name: Daniela Andren 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Andren 
Title: Assessing the employment effects of vocational training using a one-factor model 
Abstract:
  Matching estimators use observed variables to adjust for differences
 between groups to eliminate sample selection bias. When minimum relevant
 information is not available, matching estimates are biased. If access to
 data on usually unobserved factors that determine the selection process is
 unavailable, other estimators should be used. This study advocates the
 one-factor control function estimator that allows for unobserved
 heterogeneity with factor-loading technique. Treatment effects of
 vocational training in Sweden are estimated with mean and distributional
 parameters, and then compared with matching estimates. The results
 indicate that unobservables slightly increase the treatment effect for
 those treated. 
Journal: Applied Economics 
Pages: 2469-2486 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427577 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427577 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2469-2486




Template-Type: ReDIF-Article 1.0
Author-Name: Ernst Juerg Weber 
Author-X-Name-First: Ernst Juerg 
Author-X-Name-Last: Weber 
Title: Monetary policy in a heterogeneous monetary union: the Australian experience 
Abstract:
  Australia is a monetary union with strong regional specialization.
 Manufacturing and service industries are located in the population centres
 on the south-eastern seaboard, and mining and pastoral activities take
 place in the interior and north of the continent. Monetary policy affects
 the interior and north more strongly than the south-eastern seaboard
 because Australian primary goods are mostly exported and the exchange rate
 provides the main transmission channel for monetary policy. The Reserve
 Bank of Australia must consider the economic interests of the interior and
 north and the south-eastern seaboard. Since monetary policy cannot
 differentiate between regions, there is a need for interregional
 macroeconomic risk-sharing. 
Journal: Applied Economics 
Pages: 2487-2495 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427742 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427742 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2487-2495




Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Dacuycuy 
Author-X-Name-First: Lawrence 
Author-X-Name-Last: Dacuycuy 
Title: Explaining male wage inequality in the Philippines: non-parametric and semiparametric approaches 
Abstract:
  The study examines the roles of experience and education in explaining
 the increase in wage inequality among Philippine male workers between 1988
 and 1995. It also provides a methodological approach to the analysis of
 wage inequality by combining non-parametric methods with semiparametric
 additive models, using the variance accounting framework. Non-parametric
 density estimators allow flexibility in dealing with distributional
 inference while additive models yield marginal effects estimates under
 minimal assumptions on the functional specification of the wage-schooling
 and wage-experience relationships. The results show that much of the
 inequality increase from 1988 to 1995 was caused by greater variabilities
 in returns to schooling and experience among 1995 workers. The rise of the
 p90/p10 percentile ratio was caused by greater return variabilities on
 schooling and experience in the 90th percentile. 
Journal: Applied Economics 
Pages: 2497-2511 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427767 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427767 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2497-2511




Template-Type: ReDIF-Article 1.0
Author-Name: Sonia Bhalotra 
Author-X-Name-First: Sonia 
Author-X-Name-Last: Bhalotra 
Title: Near rationality in wage setting 
Abstract:
  This study argues that it is interesting to examine near rational
 behaviour in the context of an efficiency wage model, where there are
 positive if decreasing returns to increasing the wage beyond the efficient
 level. Previous research has found it difficult to distinguish between
 efficiency wage and bargaining models, which have similar empirical
 predictions. But unions are a priori more likely to develop in
 environments in which the technology favours efficiency wage payments.
 This makes it interesting to investigate what it costs the firm to deviate
 from the efficiency wage. If it does not cost a lot, firms may give in to
 union demands. This study derives expressions for the wage deviation and
 for the associated profit loss. For illustrative purposes, these are
 calibrated for UK, US and Indian manufacturing, taking a plausible
 parameterization of the effort-wage function and using available estimates
 of the wage and employment elasticities of output. While there is evidence
 of positive effort returns to wages in the UK and India, the results are
 consistent with wage bargaining pushing the wage above the efficient
 level. The associated profit loss is considerably larger in the UK than in
 India. In contrast, US firms pay wages that are insignificantly different
 from the efficiency wage. 
Journal: Applied Economics 
Pages: 2513-2521 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427734 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427734 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2513-2521




Template-Type: ReDIF-Article 1.0
Author-Name: Young-Kyu Moh 
Author-X-Name-First: Young-Kyu 
Author-X-Name-Last: Moh 
Title: Continuous-time model of uncovered interest parity with regulated jump-diffusion interest differential 
Abstract:
  This study investigates to what extent can an exchange rate model built
 on uncovered interest parity (UIP) match the empirical features of the
 exchange rate and the interest differential data. This article presents a
 continuous-time model of UIP in which the interest differential evolves
 following regulated jump-diffusion. Simulation experiments show that the
 model is capable of matching several important features of the data.
 Inclusion of jumps improves the model to capture persistent dynamics of
 interest differential and fat-tails in exchange rate returns compared to
 simple diffusion processes. 
Journal: Applied Economics 
Pages: 2523-2533 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427809 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427809 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2523-2533




Template-Type: ReDIF-Article 1.0
Author-Name: Muzafar Shah Habibullah 
Author-X-Name-First: Muzafar Shah 
Author-X-Name-Last: Habibullah 
Author-Name: Peter Smith 
Author-X-Name-First: Peter 
Author-X-Name-Last: Smith 
Author-Name: W. N. W. Azman-Saini 
Author-X-Name-First: W. N. W. 
Author-X-Name-Last: Azman-Saini 
Title: Testing liquidity constraints in 10 Asian developing countries: an error-correction model approach 
Abstract:
  An error-correction model is used to estimate the fraction of consumers
 who are liquidity-constrained in 10 Asian developing countries. Our
 estimates of the fraction of consumers who are liquidity-constrained range
 between 0.25 and 0.98. We further investigate whether financial
 liberalization has resulted in the reduction of liquidity constraints in
 these countries. However, the results find support for this only in the
 cases of South Korea, Sri Lanka and Taiwan. 
Journal: Applied Economics 
Pages: 2535-2543 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427833 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427833 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2535-2543




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu 
Author-X-Name-First: Chun-Chu 
Author-X-Name-Last: Liu 
Title: Simulating weight restrictions in data envelopment analysis using the subjective and objective integrated approach 
Abstract:
  Data envelopment analysis (DEA) is a method that uses a mathematical
 programming model to determine the relative efficiency of a
 decision-making unit, and gives optimal weight for a set of inputs and
 outputs. The scores of the weights will generally differ from unit to unit
 and this flexibility in the choice of weights is both a strength and a
 weakness of this approach. The strength is that the weight generated will
 be fair and equitable, and not affected by subjective factors. The
 weakness is that, if the weight is selected intentionally, it may then
 make the decision-making unit relatively efficient, and its efficiency
 will not necessarily come from an inherent efficiency, but from the
 selection of the weight. Is the score of the relative efficiency obtained
 using such an innate weight fair, reasonable, and acceptable? This
 question is addressed in order to integrate the subjective and objective
 weights restriction method, so that the results of the evaluation can be
 more realistic. The study concludes by taking the garbage clearance of
 each district in Kaohsiung city in Southern Taiwan is considered to
 illustrate this approach. 
Journal: Applied Economics 
Pages: 2545-2552 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840601043752 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601043752 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2545-2552




Template-Type: ReDIF-Article 1.0
Author-Name: Christian von Hirschhausen 
Author-X-Name-First: Christian 
Author-X-Name-Last: von Hirschhausen 
Author-Name: Astrid Cullmann 
Author-X-Name-First: Astrid 
Author-X-Name-Last: Cullmann 
Author-Name: Andreas Kappeler 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Kappeler 
Title: Efficiency analysis of German electricity distribution utilities - non-parametric and parametric tests 
Abstract:
  This study applies non-parametric and parametric tests to assess the
 efficiency of electricity distribution companies in Germany. Traditional
 issues in electricity sector benchmarking are addressed, such as the role
 of scale effects and optimal utility size, as well as new evidence
 specific to the situation in Germany. Labour, capital, and peak load
 capacity are used as inputs, and units sold and the number of customers as
 output. The data cover 307 (out of 553) German electricity distribution
 utilities. A data envelopment analysis (DEA) is applied with constant
 returns to scale (CRS) as the main productivity analysis technique,
 whereas stochastic frontier analysis (SFA) with distance function is the
 verification method. The results suggest that returns to scale play but a
 minor role; only very small utilities have a significant cost advantage.
 Low customer density is found to affect the efficiency score
 significantly, in particular in the lower third of all observations.
 Surprisingly, East German utilities feature a higher average efficiency
 than their West German counterparts. The correlation tests imply a high
 coherence of the results. 
Journal: Applied Economics 
Pages: 2553-2566 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427650 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427650 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2553-2566




Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim 
Author-X-Name-First: Ruhul 
Author-X-Name-Last: Salim 
Author-Name: Amzad Hossain 
Author-X-Name-First: Amzad 
Author-X-Name-Last: Hossain 
Title: Market deregulation, trade liberalization and productive efficiency in Bangladesh agriculture: an empirical analysis 
Abstract:
  The impact of trade liberalization and of market deregulation in general,
 on the performance of agriculture remains contentious and empirical issue
 in the literature. Following the random coefficient frontier modelling
 framework, this paper attempts to contribute to this debate by computing
 the farm-specific productive efficiency indices in Bangladesh agriculture
 before and after reform. It also examines the impact of some farm-specific
 and policy variables on productive efficiency. The empirical results show
 that there are wide variations in productive efficiency across farms and
 regions and the average efficiency of all regions increased modestly by 8
 percentage points from the pre-reform to post-reform period. The
 efficiency differentials are largely explained by farm size,
 infrastructure, households' off-farm income and the reduction of
 government anti-agricultural bias in relation to trade and domestic
 policies. The implication of these results suggests the need for further
 policy reform to augment productive efficiency. 
Journal: Applied Economics 
Pages: 2567-2580 
Issue: 21 
Volume: 38 
Year: 2006 
X-DOI: 10.1080/00036840500427585 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427585 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2567-2580




Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Gelper 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Gelper 
Author-Name: Aurelie Lemmens 
Author-X-Name-First: Aurelie 
Author-X-Name-Last: Lemmens 
Author-Name: Christophe Croux 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Croux 
Title: Consumer sentiment and consumer spending: decomposing the Granger causal relationship in the time domain 
Abstract:
  It is often believed that the consumer sentiment index has predictive
 power for future consumption levels. While Granger causality tests have
 already been used to test for this, no attempt has been made yet to
 quantify the predictive power of the consumer sentiment index over
 different time horizons. In this article, we decompose the Granger
 causality at different time lags, by looking at a sequence of nested
 prediction models. Since the consumer sentiment index turns out to be
 cointegrated with real consumption, we resort to error correcting models.
 Four consumption series are studied, namely total real consumption, real
 consumption of durables, non-durables and services. Among other findings,
 we show that the consumer sentiment index Granger causes future
 consumption with an average time lag of 4-5 months. Furthermore, it is
 found that the consumer sentiment index has more incremental predictive
 power for consumption of services than for consumption of durables or
 non-durables, and that the index is not only useful as a predictor at the
 very short term, but keeps predictive power at larger time horizons. 
Journal: Applied Economics 
Pages: 1-11 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427791 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427791 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:1-11




Template-Type: ReDIF-Article 1.0
Author-Name: Robert-Paul Berben 
Author-X-Name-First: Robert-Paul 
Author-X-Name-Last: Berben 
Title: Does stock market uncertainty impair the use of monetary indicators in the euro area? 
Abstract:
  The relationship between monetary indicators and inflation is usually
 assumed to be linear, implying that looser monetary conditions always
 signal an increase in inflation. Recently, money growth in the euro area
 surged while inflation remained comparatively subdued. This seems at
 variance with linearity. At the same time, stock market uncertainty
 peaked, suggesting that part of the money growth resulted from portfolio
 adjustment and was hence non-inflationary. A threshold regression model is
 employed to verify the claim that the impact of monetary indicators on
 future inflation varies conditional on stock price volatility. It is shown
 that there is limited evidence to support this claim. On the other hand,
 the results indicate that stock market data may contain useful information
 regarding future inflation, 
Journal: Applied Economics 
Pages: 13-23 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600903436 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600903436 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:13-23




Template-Type: ReDIF-Article 1.0
Author-Name: Magnus Gustavsson 
Author-X-Name-First: Magnus 
Author-X-Name-Last: Gustavsson 
Title: The 1990s rise in Swedish earnings inequality -- persistent or transitory? 
Abstract:
  This article decomposes the rise in the cross-sectional variance of male
 annual earnings in Sweden between 1991 and 1999 into its persistent and
 transitory components. The results show that the persistent component
 accounts for basically all of the increase in earnings dispersion. This
 implies that the answer to the 1990s trend reversal in Swedish earnings
 inequality is to be found in explanations that focus on persistent changes
 in the labour market, such as changes in the price of skills. 
Journal: Applied Economics 
Pages: 25-30 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:25-30




Template-Type: ReDIF-Article 1.0
Author-Name: John Tauras 
Author-X-Name-First: John 
Author-X-Name-Last: Tauras 
Author-Name: Lisa Powell 
Author-X-Name-First: Lisa 
Author-X-Name-Last: Powell 
Author-Name: Frank Chaloupka 
Author-X-Name-First: Frank 
Author-X-Name-Last: Chaloupka 
Author-Name: Hana Ross 
Author-X-Name-First: Hana 
Author-X-Name-Last: Ross 
Title: The demand for smokeless tobacco among male high school students in the United States: the impact of taxes, prices and policies 
Abstract:
  Despite the deleterious effects of smokeless tobacco use, very little is
 known about the effects of tobacco control policies on smokeless tobacco
 demand. This paper uses data extracted from the 1995-2001 National Youth
 Risk Behavior Surveys (YRBS) augmented with tobacco taxes, prices and
 policies to estimate smokeless tobacco demand equations among male high
 school students. The estimates indicate that higher smokeless tobacco
 taxes would significantly reduce the number of male students who use
 smokeless tobacco and the number of days smokeless tobacco users use
 smokeless tobacco. Moreover, smokeless tobacco products and cigarettes
 were found to be economic complements in consumption. 
Journal: Applied Economics 
Pages: 31-41 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427940 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:31-41




Template-Type: ReDIF-Article 1.0
Author-Name: John Dawson 
Author-X-Name-First: John 
Author-X-Name-Last: Dawson 
Author-Name: Steven Millsaps 
Author-X-Name-First: Steven 
Author-X-Name-Last: Millsaps 
Author-Name: Mark Strazicich 
Author-X-Name-First: Mark 
Author-X-Name-Last: Strazicich 
Title: Trend breaks and non-stationarity in the Yugoslav black market for dollars, 1974-1987 
Abstract:
  We estimate a model of the black market premium for dollars in Yugoslavia
 from 1974 to 1987. Unlike previous applications of the model, our analysis
 addresses non-stationarity in the underlying data by allowing for trend
 breaks. Endogenous structural break tests indicate the presence of breaks
 closely associated with the death of Tito and changes in laws affecting
 the operation of the black market. After accounting for these breaks, we
 find strong support for the underlying model. In addition, we find
 evidence consistent with the era of increased government involvement in
 the black market leading to greater volatility of the premium following
 regime change. 
Journal: Applied Economics 
Pages: 43-51 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427932 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427932 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:43-51




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Berument 
Author-Name: Nildag Basak Ceylan 
Author-X-Name-First: Nildag Basak 
Author-X-Name-Last: Ceylan 
Author-Name: Hasan Olgun 
Author-X-Name-First: Hasan 
Author-X-Name-Last: Olgun 
Title: Inflation uncertainty and interest rates: is the Fisher relation universal? 
Abstract:
  This paper tests the validity of the Fisher hypothesis, which establishes
 a positive relation between interest rates and expected inflation, for the
 G7 countries and 45 developing economies. For this purpose, we estimate a
 version of the GARCH specification of the hypothesis for all countries
 included in the sample. We also test the augmented Fisher relation by
 including the inflation uncertainty in the equation. The simple Fisher
 relation holds in all G7 countries but in only 23 developing countries.
 There is a positive and statistically significant relationship between
 interest rates and inflation uncertainty for six of the G7 and 18 of the
 developing countries and this relationship is negative for seven
 developing countries. 
Journal: Applied Economics 
Pages: 53-68 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427908 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427908 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:53-68




Template-Type: ReDIF-Article 1.0
Author-Name: Harry Telser 
Author-X-Name-First: Harry 
Author-X-Name-Last: Telser 
Author-Name: Peter Zweifel 
Author-X-Name-First: Peter 
Author-X-Name-Last: Zweifel 
Title: Validity of discrete-choice experiments evidence for health risk reduction 
Abstract:
  There is growing interest in discrete-choice experiment (DCE) as a method
 to elicit consumers' preferences in the health care sector. Increasingly
 this method is used to determine willingness to pay (WTP) for
 health-related goods. However, its external validity in the health care
 domain has not been investigated until now. This paper examines the
 external validity of DCE concerning the reduction of a health risk.
 Convergent validity is examined by comparing the value of a statistical
 life with other preference elicitation techniques, such as revealed
 preference. Criterion validity is shown by comparing WTP values derived
 from stated choices in the experiment with those derived from actual
 choices made by the same individuals. Both tests provide strong evidence
 in favour of external validity of the DCE method. 
Journal: Applied Economics 
Pages: 69-78 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427858 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427858 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:69-78




Template-Type: ReDIF-Article 1.0
Author-Name: Chin-Tsai Lin 
Author-X-Name-First: Chin-Tsai 
Author-X-Name-Last: Lin 
Author-Name: Yi-Hsien Wang 
Author-X-Name-First: Yi-Hsien 
Author-X-Name-Last: Wang 
Title: The impact of party alternative on the stock market: the case of Japan 
Abstract:
  This paper tries to clarify whether change in political regime has an
 effect on the behaviour of the stock market in Japan. The empirical study
 finds that the transition of ruling party effect is not a crucial variable
 to the Nikkei 225. The alienation felt by the Japanese about the political
 environment, resulting in a succession of prime ministers, does not
 influence the Nikkei 225 stock market behaviour. Therefore, former prime
 ministers who have resigned have become scapegoats for the poor
 performance of financial and economic policies. 
Journal: Applied Economics 
Pages: 79-85 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427882 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427882 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:79-85




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Hans Matthews 
Author-X-Name-First: Peter Hans 
Author-X-Name-Last: Matthews 
Author-Name: Paul Sommers 
Author-X-Name-First: Paul 
Author-X-Name-Last: Sommers 
Author-Name: Francisco Peschiera 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Peschiera 
Title: Incentives and superstars on the LPGA Tour 
Abstract:
  Following Ehrenberg and Bognanno (1990a, b), this study explores the role
 of incentives on the 2000 LPGA Tour. Overall, it finds them to have
 limited effectiveness. Several possible explanations are considered,
 including unmeasured differences in both abilities and courses and
 variations in the distribution of prizes across tournaments. The existence
 of a 'superstar effect' is also considered. 
Journal: Applied Economics 
Pages: 87-94 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840601004143 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601004143 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:87-94




Template-Type: ReDIF-Article 1.0
Author-Name: Ludwig Von Auer 
Author-X-Name-First: Ludwig 
Author-X-Name-Last: Von Auer 
Author-Name: John Brennan 
Author-X-Name-First: John 
Author-X-Name-Last: Brennan 
Title: Bias and inefficiency in quality-adjusted hedonic regression analysis 
Abstract:
  Numerous quality-adjusted hedonic price-trend studies based on computer
 prices have provided support to widely held suspicions that officially
 released price indices are not accurately measuring the price declines
 occurring in many information technology (IT) products. If provable, then
 general price inflation is being overestimated and, consequently, real GDP
 is being underestimated. Existing evidence, however, is inconclusive.
 First, empirical findings for IT products other than computers are
 essentially non-existent and, secondly, estimation bias is inherent in the
 hedonic regression technique most commonly employed. This article presents
 an unbiased method together with an estimated quality-adjusted price trend
 for laser printers (1993-2004). 
Journal: Applied Economics 
Pages: 95-107 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427841 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427841 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:95-107




Template-Type: ReDIF-Article 1.0
Author-Name: Albert Wijeweera 
Author-X-Name-First: Albert 
Author-X-Name-Last: Wijeweera 
Author-Name: Brian Dollery 
Author-X-Name-First: Brian 
Author-X-Name-Last: Dollery 
Author-Name: Don Clark 
Author-X-Name-First: Don 
Author-X-Name-Last: Clark 
Title: Corporate tax rates and foreign direct investment in the United States 
Abstract:
  A significant research effort has been directed at establishing the
 determinants of foreign direct investment (FDI), with taxation policy
 identified as an important factor. However, the empirical literature has
 been limited in several respects, with most work focused exclusively on
 host country tax regimes. This paper seeks to extend the boundaries of FDI
 empirical inquiry by using a panel of nine investing tax exemption and tax
 credit countries over the period 1982-2000, constituting more than 85% of
 total US FDI inflows, and incorporating home country tax rates to analyse
 two as yet unanswered questions. First, are corporate income tax rates an
 important determinant of FDI in the US? Secondly, do investors from tax
 credit countries differ significantly in their tax response relative to
 those from tax exemption countries? 
Journal: Applied Economics 
Pages: 109-117 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447872 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447872 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:109-117




Template-Type: ReDIF-Article 1.0
Author-Name: Asier Minondo 
Author-X-Name-First: Asier 
Author-X-Name-Last: Minondo 
Title: The disappearance of the border barrier in some European Union countries' bilateral trade 
Abstract:
  This paper estimates the tariff equivalent of the border barrier in each
 bilateral trade among European Union (EU) countries. The results show that
 there are large differences in the border barrier across EU countries'
 bilateral trade. In some bilateral trade flows the border barrier has
 almost disappeared, whereas in other cases it is still equivalent to a 75%
 tariff. The results also show that some countries have low border barriers
 in most of their bilateral trade flows with other EU members, whereas
 other countries persistently present large border barriers. 
Journal: Applied Economics 
Pages: 119-124 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427601 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427601 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:119-124




Template-Type: ReDIF-Article 1.0
Author-Name: Winston Koh 
Author-X-Name-First: Winston 
Author-X-Name-Last: Koh 
Author-Name: Roberto Mariano 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Mariano 
Author-Name: Yiu Kuen Tse 
Author-X-Name-First: Yiu Kuen 
Author-X-Name-Last: Tse 
Title: Open vs. sealed-bid auctions: testing for revenue equivalence under Singapore's vehicle quota system 
Abstract:
  Using data from the auction of vehicle quota licenses in Singapore, we
 study if revenue equivalence holds when the auction format was switched
 from a sealed-bid format (May 1990 to June 2001) to an open bidding format
 since July 2001. Our econometric analysis indicates the change in auction
 format led to a change in bidding behavior. On average, the quota license
 premium under the open bidding format is about US$1000 (about 7.5% of the
 Category E license price in June 2001) lower, compared to the forecast
 level that would have prevailed if there had been no change in the auction
 format. 
Journal: Applied Economics 
Pages: 125-134 
Issue: 1 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427916 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:125-134




Template-Type: ReDIF-Article 1.0
Author-Name: Jian Yang 
Author-X-Name-First: Jian 
Author-X-Name-Last: Yang 
Author-Name: Jaeun Shin 
Author-X-Name-First: Jaeun 
Author-X-Name-Last: Shin 
Author-Name: Moosa Khan 
Author-X-Name-First: Moosa 
Author-X-Name-Last: Khan 
Title: Causal linkages between US and Eurodollar interest rates: further evidence 
Abstract:
  This study examines causal linkages between US and Eurodollar interest
 rates during 1983-2002. Recursive cointegration analysis shows that a
 stable cointegration relationship between the two interest rates emerges
 only since the early 1990s, when the Fed used federal funds rate targeting
 and eliminated the reserve requirement on Eurocurrency deposits. The study
 further reveals that bidirectional causality exists between the two rates
 over the period of 1993 to 2002, while unidirectional causality from
 Eurodollar rate to the US rate is found to exist over the period of 1983
 to 1991. These findings consistently support increased interest rate
 linkages especially since the early 1990s. 
Journal: Applied Economics 
Pages: 135-144 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428070 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428070 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:135-144




Template-Type: ReDIF-Article 1.0
Author-Name: Thorsten Egelkraut 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Egelkraut 
Author-Name: Philip Garcia 
Author-X-Name-First: Philip 
Author-X-Name-Last: Garcia 
Author-Name: Bruce Sherrick 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Sherrick 
Title: Options-based forecasts of futures prices in the presence of limit moves 
Abstract:
  The reported analysis examines a simultaneous estimation option-based
 approach to forecast futures prices in the presence of daily price limit
 moves. The procedure explicitly allows for changing implied volatilities
 by estimating the implied futures price and the implied volatility
 simultaneously. Using futures and futures options data for three
 agricultural commodities, it is found that the simultaneous estimation
 approach accounts for the abrupt changes in implied volatility associated
 with limit moves and generates more accurate price forecasts than
 conventional methods that rely on only one implied variable. 
Journal: Applied Economics 
Pages: 145-152 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427478 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427478 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:145-152




Template-Type: ReDIF-Article 1.0
Author-Name: Boriss Siliverstovs 
Author-X-Name-First: Boriss 
Author-X-Name-Last: Siliverstovs 
Author-Name: Dierk Herzer 
Author-X-Name-First: Dierk 
Author-X-Name-Last: Herzer 
Title: Manufacturing exports, mining exports and growth: cointegration and causality analysis for Chile (1960-2001) 
Abstract:
  This study examines the export-led growth hypothesis using annual time
 series data from Chile in a production function framework. It addresses
 the problem of specification bias under which previous studies have
 suffered, and focuses on the impact of manufactured and mining exports on
 productivity growth. In order to investigate if and how manufactured and
 mining exports affect economic growth via increases in productivity, the
 study uses Johansen cointegration technique. The estimation results can be
 interpreted as evidence of productivity-enhancing effects of manufactured
 exports and of productivity-limiting effects of mining exports. 
Journal: Applied Economics 
Pages: 153-167 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427965 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427965 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:153-167




Template-Type: ReDIF-Article 1.0
Author-Name: Jiawen Yang 
Author-X-Name-First: Jiawen 
Author-X-Name-Last: Yang 
Title: Is exchange rate pass-through symmetric? Evidence from US imports 
Abstract:
  This study addresses the question of whether exchange rate pass-through
 into the import price is symmetric between appreciation and depreciation
 of the home currency. The dramatic increase of the dollar in the early
 1980s and the subsequent decline provided a necessary setting for testing
 whether there was a structural change in the exchange rate pass-through.
 Examining import price data for 98 disaggregated SIC industries in the US
 manufacturing sector and the US import price for all commodities, mixed
 evidence is found regarding the stability of exchange rate pass-through. 
Journal: Applied Economics 
Pages: 169-178 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427320 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427320 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:169-178




Template-Type: ReDIF-Article 1.0
Author-Name: Jurgen Bitzer 
Author-X-Name-First: Jurgen 
Author-X-Name-Last: Bitzer 
Author-Name: Andreas Stephan 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Stephan 
Title: A Schumpeter-inspired approach to the construction of R&D capital stocks 
Abstract:
  A new method for constructing R&D capital stocks is proposed and tested.
 Following Schumpeter, the development of R&D capital stocks is modelled as
 a process of creative destruction. Newly generated knowledge is assumed
 not only to add to the existing R&D capital stocks but also, by displacing
 old knowledge, to destroy part of that capital. This is in stark contrast
 to the perpetual inventory method, which postulates a constant rate of
 depreciation. We compare both methods by estimating the impact of R&D and
 spillovers on output of 9 industries in 12 OECD countries, and find that
 the new approach leads to more sensible and robust results. 
Journal: Applied Economics 
Pages: 179-189 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427973 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427973 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:179-189




Template-Type: ReDIF-Article 1.0
Author-Name: Jim Granato 
Author-X-Name-First: Jim 
Author-X-Name-Last: Granato 
Author-Name: Melody Lo 
Author-X-Name-First: Melody 
Author-X-Name-Last: Lo 
Author-Name: M. C. Sunny Wong 
Author-X-Name-First: M. C. Sunny 
Author-X-Name-Last: Wong 
Title: A note on Romer's openness-inflation relation: the responsiveness of AS and AD to economic openness and monetary policy 
Abstract:
  Temple (2002) empirically challenges Romer's (1993) negative
 openness-inflation relation on empirical grounds. This article links
 economic openness to the slopes of aggregate supply (AS) and aggregate
 demand (AD) to explain why the openness-inflation relation can be
 ambiguous. Starting with a widely used assumption initiated by Romer
 (1993) that more open economies face greater output inflation tradeoffs,
 we demonstrate that greater output-inflation tradeoffs in more open
 economies (reflected in the steeper AS) induce policymakers to adopt more
 aggressive optimal monetary policy (reflected in the flatter AD).
 Empirical results from 15 developed countries' data support our
 theoretical explanation on the recent empirical failure in finding the
 negative openness-inflation relation. 
Journal: Applied Economics 
Pages: 191-197 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427627 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427627 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:191-197




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Perez 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Perez 
Author-Name: Denise Osborn 
Author-X-Name-First: Denise 
Author-X-Name-Last: Osborn 
Author-Name: Marianne Sensier 
Author-X-Name-First: Marianne 
Author-X-Name-Last: Sensier 
Title: Business cycle affiliations in the context of European integration 
Abstract:
  We study affiliations for the countries of the European Economic and
 Monetary Union (EMU) with Germany and the USA, using various business
 cycle measures derived from quarterly real GDP. These measures are
 Hodrick-Prescott and Baxter-King filtered series and annual growth rates.
 By using rolling contemporaneous and maximum (over a short lead/lag
 interval) correlations, we document increasing correlations of EMU
 countries with Germany, with these typically being largest during the
 1990s. We also document a strong leading role for the USA in relation to
 these countries in the period since 1993, thereby correcting the fallacy
 that the European business cycle was disjointed from the USA for most of
 the 1990s. 
Journal: Applied Economics 
Pages: 199-214 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427924 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427924 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:199-214




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Bonham 
Author-X-Name-First: Carl 
Author-X-Name-Last: Bonham 
Author-Name: Byron Gangnes 
Author-X-Name-First: Byron 
Author-X-Name-Last: Gangnes 
Author-Name: Ari Van Assche 
Author-X-Name-First: Ari 
Author-X-Name-Last: Van Assche 
Title: Fragmentation and East Asia's information technology trade 
Abstract:
  This article studies the growth and determinants of information
 technology (IT) trade in the Asia-Pacific region. We argue that the rise
 of IT trade must be understood within the context of increasing vertical
 fragmentation of production processes that has occurred over the past two
 decades. To evaluate this empirically, we estimate a set of pooled
 bilateral IT export equations for eight Asian countries, the USA and the
 EU, where foreign direct investment (FDI) inflows are introduced as a
 proxy for fragmentation. We apply a panel cointegration approach that
 allows for heterogeneity in short-run dynamics and in fixed effects.
 Consistent with production fragmentation, we find that the evolution of IT
 trade can be explained in part by traditional income and relative price
 effects but also by FDI inflows. 
Journal: Applied Economics 
Pages: 215-228 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427635 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427635 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:215-228




Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Morana 
Author-X-Name-First: Claudio 
Author-X-Name-Last: Morana 
Author-Name: Fabio Cesare Bagliano 
Author-X-Name-First: Fabio Cesare 
Author-X-Name-Last: Bagliano 
Title: Inflation and monetary dynamics in the USA: a quantity-theory approach 
Abstract:
  In this article we investigate the long-run link between inflation and
 money growth in the United States since 1960. A measure of the long-run
 inflation trend is constructed, which bears the interpreation of
 'monetary' inflation rate and is directly related to the excess nominal
 money growth process (money growth less output growth), as postulated by
 the quantity theory. Consistent with the memory characteristics of the
 series, their fractional integration and cointegration properties are
 taken into account in empirical modelling. The proposed measure is then
 compared with several existing measures of 'core inflation', aimed at
 capturing long-run inflation dynamics but unrelated to money growth. The
 'monetary' long-run inflation rate performs well in out-of-sample
 forecasting exercises especially over a 2-3-year horizon, yielding
 valuable information to monetary policymakers. 
Journal: Applied Economics 
Pages: 229-244 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428047 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:229-244




Template-Type: ReDIF-Article 1.0
Author-Name: M. A. Garcia-Valinas 
Author-X-Name-First: M. A. 
Author-X-Name-Last: Garcia-Valinas 
Author-Name: M. A. Muniz 
Author-X-Name-First: M. A. 
Author-X-Name-Last: Muniz 
Title: Is DEA useful in the regulation of water utilities? A dynamic efficiency evaluation (a dynamic efficiency evaluation of water utilities) 
Abstract:
  The discussion about public utilities efficiency and its management has
 become increasingly important in the last decades. We focus on the
 distribution of water, which is one of the most important natural
 resources (Marshall, 1879). This research shows the relationship between
 efficiency and institutional factors such as management system. For this
 purpose, we have data about some Spanish water utilities under different
 provision systems, during the period 1985 to 2000. Using Data Envelopment
 Analysis (DEA), we estimate potential cost savings in this context. We
 will extend the results obtained by Thanassoulis (2000a, b), in attempt to
 guide the regulation of this sector. 
Journal: Applied Economics 
Pages: 245-252 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428054 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428054 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:245-252




Template-Type: ReDIF-Article 1.0
Author-Name: K. Maris 
Author-X-Name-First: K. 
Author-X-Name-Last: Maris 
Author-Name: K. Nikolopoulos 
Author-X-Name-First: K. 
Author-X-Name-Last: Nikolopoulos 
Author-Name: K. Giannelos 
Author-X-Name-First: K. 
Author-X-Name-Last: Giannelos 
Author-Name: V. Assimakopoulos 
Author-X-Name-First: V. 
Author-X-Name-Last: Assimakopoulos 
Title: Options trading driven by volatility directional accuracy 
Abstract:
  Analysts have claimed over the last years that the volatility of an asset
 is caused solely by the random arrival of new information about the future
 returns from the underlying asset. It is a common belief that volatility
 is of great importance in finance and it is one of the critical factors
 determining option prices and consequently driving option-trading
 strategies. This article discusses an empirical option trading methodology
 based on efficient volatility direction forecasts. Although in most cases
 accurate volatility forecasts are hard to obtain, forecasting the
 direction is significantly easier. Increase in the directional accuracy
 leads to profitable investment strategies. The net gain is depended on the
 size of the changes as well; however successful volatility forecasts in
 terms of directional accuracy was found to be sufficient for positive
 results. In order to evaluate the proposed methodology weekly data from
 CAX40, DAX and the Greek FTSE/ASE 20 stock indices were used. 
Journal: Applied Economics 
Pages: 253-260 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427999 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427999 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:253-260




Template-Type: ReDIF-Article 1.0
Author-Name: Tiziana Cuccia 
Author-X-Name-First: Tiziana 
Author-X-Name-Last: Cuccia 
Author-Name: Roberto Cellini 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Cellini 
Title: Is cultural heritage really important for tourists? A contingent rating study 
Abstract:
  In this article we present the results of a contingent rating study
 carried out on a sample of tourisits visiting Scicli, a Sicilian town
 known for its baroque heritage. In particular, we focus on different
 attributes of tourism products - namely, season, accommodation and
 cultural heritage - to study how much each of these attributes weights in
 tourists' preferences. We also study how the socio-demographic
 characteristics of people affect their evaluation of the different
 attributes of tourism products. The heritage endowment appears to be far
 from being the most important factor; this result is consistent across
 different socio-demographic subgroups of interviewed persons. 
Journal: Applied Economics 
Pages: 261-271 
Issue: 2 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427981 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427981 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:261-271




Template-Type: ReDIF-Article 1.0
Author-Name: WenShwo Fang 
Author-X-Name-First: WenShwo 
Author-X-Name-Last: Fang 
Author-Name: Stephen Miller 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Miller 
Title: Exchange rate depreciation and exports: the case of Singapore revisited 
Abstract:
  This article revisits the weak relationship between exchange rate
 depreciation and exports for Singapore, using a bivariate generalized
 autoregressive conditional heteroscedasticity in mean model that
 simultaneously estimates time-varying risk. The evidence shows that
 depreciation does not significantly improve exports, but that exchange
 rate risk significantly impedes exports. In sum, Singaporean policy makers
 can better promote export growth by stabilizing the exchange rate rather
 than generating its depreciation. 
Journal: Applied Economics 
Pages: 273-277 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438848 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438848 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:273-277




Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda 
Author-X-Name-First: Kosei 
Author-X-Name-Last: Fukuda 
Title: A unified approach to detecting unit root and structural break 
Abstract:
  In the proposed approach, eight alternative data-generating processes
 (DGPs) are considered by combining a process with or without a unit root,
 a process with or without a trend break and a process with or without an
 innovation-variance break. It is determined on the basis of the selected
 model using the Bayesian information criterion which DGP generates the
 observed time series. The efficacy of the proposed approach is verified
 using comprehensive simulations, including comparisons with two
 conventional hypothesis-testing methods. The results of applying the
 proposed method to output time series for 20 developed countries suggest
 that 12 series have a trend break and 16 series have an
 innovation-variance break. 
Journal: Applied Economics 
Pages: 279-289 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439044 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:279-289




Template-Type: ReDIF-Article 1.0
Author-Name: Hulya Ulku 
Author-X-Name-First: Hulya 
Author-X-Name-Last: Ulku 
Title: R&D, innovation and output: evidence from OECD and nonOECD countries 
Abstract:
  This article uses data from 41 OECD and nonOECD (Organisation for
 Economic Co-operation and Development) countries to examine the
 predictions of nonscale endogenous growth theories that an increase in the
 share of researchers in labour force leads to an increase in innovation
 and innovation raises per capita output. The results show that an increase
 in the share of researchers in labour force increases innovation only in
 the large market OECD countries. Moreover, an increase in innovation
 raises per labour GDP (Gross Domestic Product) in all nonOECD countries
 except for low income countries, while raising it only in the high-income
 OECD countries. These findings suggest that though the large market OECD
 countries are the world leader in innovation, nonOECD countries benefit
 more from it in promoting their growth. 
Journal: Applied Economics 
Pages: 291-307 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439002 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439002 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:291-307




Template-Type: ReDIF-Article 1.0
Author-Name: Qing Xiao 
Author-X-Name-First: Qing 
Author-X-Name-Last: Xiao 
Author-Name: Michael Reed 
Author-X-Name-First: Michael 
Author-X-Name-Last: Reed 
Title: Export and production growth: evidence from three major wheat exporters of Australia, Canada and the United States 
Abstract:
  This article investigates the robustness of the relationship between
 export and production growth for three major wheat exporters: Australia,
 Canada and the United States from 1966 to 2000. Combining production,
 international trade and development theories, a four variable (production,
 exports, producer price and imports) vector autoregressive moving average
 (VARMA) model is developed for each country. The causality results show
 that the hypothesis of export-led development is supported by these three
 major players in the international wheat trade, though a bi-directional
 causality is found for Canada and the USA. Variance decomposition and
 impulse response functions are employed to further investigate the effects
 of macroeconomic shocks. 
Journal: Applied Economics 
Pages: 309-319 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439010 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:309-319




Template-Type: ReDIF-Article 1.0
Author-Name: John Byers 
Author-X-Name-First: John 
Author-X-Name-Last: Byers 
Author-Name: David Peel 
Author-X-Name-First: David 
Author-X-Name-Last: Peel 
Author-Name: Dennis Thomas 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Thomas 
Title: Habit, aggregation and long memory: evidence from television audience data 
Abstract:
  Many economic outcomes appear to be influenced by habit or commitment,
 giving rise to persistence. In cases where the decision is binary and
 persistent, the aggregation of individual time series can result in a
 fractionally integrated process for the aggregate data. Certain television
 programmes appear to engender commitment on the part of viewers and the
 decision to watch or not is clearly binary. We report an empirical
 analysis of television audience data and show that these series can be
 modelled as I(d) processes. We also investigate the proposition that
 temporal aggregation of a fractionally-integrated series leaves the value
 of d unchanged. 
Journal: Applied Economics 
Pages: 321-327 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428120 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428120 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:321-327




Template-Type: ReDIF-Article 1.0
Author-Name: Olcay Yucel Emir 
Author-X-Name-First: Olcay Yucel 
Author-X-Name-Last: Emir 
Author-Name: Fatih Ozatay 
Author-X-Name-First: Fatih 
Author-X-Name-Last: Ozatay 
Author-Name: Gulbin Sahinbeyo&#x11f;lu 
Author-X-Name-First: Gulbin 
Author-X-Name-Last: Sahinbeyo&#x11f;lu 
Title: Effects of US interest rates and news on the daily interest rates of a highly indebted emerging economy: evidence from Turkey 
Abstract:
  It has been widely demonstrated that asset prices react sensitively to
 macroeconomic news releases both in the industrialized countries and
 emerging markets. However, there are contradicting results on the effects
 of changes in interest rates of industrialized countries on asset prices
 of emerging markets. In heavily indebted economies, in addition to these
 factors, political news and announcements from international institutions
 that may increase or decrease concerns about debt sustainability can
 affect asset prices as well. This potential notwithstanding, there has
 been relatively limited empirical work on the effects of such variables.
 The objective of this study is to quantify the impact of all of these
 factors on interest rates of a highly indebted emerging economy. Using
 daily post-crisis data of the Turkish economy we show that both good and
 bad political news, International Monetary Fund announcements, and
 European Union related news significantly affected secondary market
 government securities yields, whereas volatility of yields was affected
 mainly by bad news releases. Changes in US Treasury bond rates and
 'appetite' for risk of foreign investors did not affect government
 securities yields in the period analysed. 
Journal: Applied Economics 
Pages: 329-342 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427270 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427270 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:329-342




Template-Type: ReDIF-Article 1.0
Author-Name: Yesim Gurbuz 
Author-X-Name-First: Yesim 
Author-X-Name-Last: Gurbuz 
Author-Name: Thomas Jobert 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Jobert 
Author-Name: Ruhi Tuncer 
Author-X-Name-First: Ruhi 
Author-X-Name-Last: Tuncer 
Title: Public debt in Turkey: evaluation and perspectives 
Abstract:
  The aim of this study is to analyse past and future sustainability of
 total public debt in Turkey. The analysis is based on econometric studies
 and simulations. The data are taken quarterly in order to take into
 account intra annual effects important in Turkey, given the strong
 volatility of the economy. The period covered is 1988 to 2002. The
 econometric analysis rejects the hypothesis of the sustainability of
 Turkish public debt in the last 15 years. The simulations show that to
 reach an acceptable level of debt, Turkey has to solve its problem of
 chronic inflation, stabilize its economy and adopt either a policy
 freezing public spending or a very active fiscal policy. 
Journal: Applied Economics 
Pages: 343-359 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438889 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438889 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:343-359




Template-Type: ReDIF-Article 1.0
Author-Name: Quentin Chu 
Author-X-Name-First: Quentin 
Author-X-Name-Last: Chu 
Author-Name: Deborah Pittman 
Author-X-Name-First: Deborah 
Author-X-Name-Last: Pittman 
Author-Name: Jeng-Hong Chen 
Author-X-Name-First: Jeng-Hong 
Author-X-Name-Last: Chen 
Title: Inflation or disinflation? Evidence from maturing US Treasury Inflation-Protected Securities 
Abstract:
  The prices of maturing US Treasury Inflation-Protected Securities (TIPS)
 during the last 6-month coupon period reveal whether the market is
 anticipating an inflationary or disinflationary regime. Against the
 benchmark of the Treasury bill yield to adjust for the time value of
 money, maturing TIPS prices represent a sequence of updated forecasts of
 the consumer price index (CPI) to be used to determine the final single
 cash flow on the maturity date. Under the assumption of risk-neutrality,
 the sequence of forecasts is modelled as a martingale. Generalized method
 of moments and regression analysis are used to test two martingale
 properties of the CPI forecasts: (1) the unconditional mean of daily
 changes in the CPI forecasts is zero and (2) serial correlations of the
 daily changes in the CPI forecasts are zero. The test statistics reject
 both martingale properties of the CPI forecasts implied in maturing TIPS
 prices. A persistent upward movement of the CPI forecasts toward the
 actual target CPI during the first quarter of 2002 implies the market was
 then anticipating a disinflationary regime. One policy implication is that
 time series behaviour of CPI forecasts can provide timely feedback to the
 Federal Reserve Open Market Committee. 
Journal: Applied Economics 
Pages: 361-372 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438939 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438939 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:361-372




Template-Type: ReDIF-Article 1.0
Author-Name: Baichen Jiang 
Author-X-Name-First: Baichen 
Author-X-Name-Last: Jiang 
Author-Name: John Davis 
Author-X-Name-First: John 
Author-X-Name-Last: Davis 
Title: Household food demand in rural China 
Abstract:
  This article explores rural household food consumption behaviour in China
 using a large household data set from Jilin Province. Data are classified
 into four main food groups&#x2014;grain, vegetable products, animal
 products and other foods. A household food demand system, incorporating
 four household characteristics, is estimated using an LA-AIDS model,
 assuming a three-stage budgeting procedure. Expenditure elasticities for a
 range of food groups are estimated, with a particular focus on animal
 products. The inclusion of household characteristics did not have a big
 impact on the elasticity values in any of the three stages of the
 budgeting process. The total expenditure elasticity for grain (Stage II)
 was 0.64, suggesting substantial future growth in household demand for
 fine grains such as rice and wheat, as per capita incomes continue to grow
 in rural areas. The highest conditional and total expenditure elasticity
 values were for the animal products (Stage II) group, 1.22 and 0.76,
 respectively. Within this group the elasticities were highest for the meat
 sub-group at 1.14 and 0.87, respectively, suggesting an almost
 proportionate increase in demand as household incomes grow. Added demand
 pressures from animal production will likely keep grain policy high on the
 political agenda. 
Journal: Applied Economics 
Pages: 373-380 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428013 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:373-380




Template-Type: ReDIF-Article 1.0
Author-Name: Toshinobu Matsuda 
Author-X-Name-First: Toshinobu 
Author-X-Name-Last: Matsuda 
Title: Linearizing the inverse quadratic almost ideal demand system 
Abstract:
  This article investigates the linear approximation to the inverse
 quadratic almost ideal demand system (IQUAIDS), a recently introduced
 flexible functional form with potential usefulness. Linearizing this
 nonlinear model is of practical importance because nonstationary data,
 which are likely to be used in inverse demand systems, can be handled more
 properly in linear models. The IQUAIDS is linearized by replacing the two
 aggregator functions with a number of alternative quantity indices and new
 composite variables. The results of an application to Japanese fresh food
 demand suggest that the IQUAIDS can be linearized with adequate accuracy
 in terms of elasticities. 
Journal: Applied Economics 
Pages: 381-396 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600825779 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600825779 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:381-396




Template-Type: ReDIF-Article 1.0
Author-Name: Chengqi Wang 
Author-X-Name-First: Chengqi 
Author-X-Name-Last: Wang 
Author-Name: Li Yu 
Author-X-Name-First: Li 
Author-X-Name-Last: Yu 
Title: Do spillover benefits grow with rising foreign direct investment? An empirical examination of the case of China 
Abstract:
  Using data from the Chinese manufacturing industry for 2001, this article
 examines the impacts of foreign presence on the performance of locally
 owned Chinese firms. Our key result supports a curvilinear functional
 form. Foreign penetration rates in excess of just about two-thirds of
 industrial capital are associated with declining spillover benefits,
 indicating the dominance of negative spillovers. The curvilinear
 relationship is found to be particularly strong in labour-intensive
 industries, contrasting with a standard linear relationship in
 technology-intensive sectors. The finding of the complexity of spillover
 effects challenges the laissez-faire view that 'the more inward foreign
 direct investment (FDI), the better' and that inward FDI into all types of
 domestic industry is equally valuable, in terms of performance benefits.
 Our findings argue for policy measures to strengthen domestically owned
 Chinese industry, to provide effective competition to foreign firms and to
 absorb the benefits from spillovers more effectively. 
Journal: Applied Economics 
Pages: 397-405 
Issue: 3 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428096 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428096 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:397-405




Template-Type: ReDIF-Article 1.0
Author-Name: Oral Williams 
Author-X-Name-First: Oral 
Author-X-Name-Last: Williams 
Author-Name: Olumuyiwa Adedeji 
Author-X-Name-First: Olumuyiwa 
Author-X-Name-Last: Adedeji 
Title: Inflation dynamics in a small emerging market 
Abstract:
  This study investigates the determinants of inflation in the Dominican
 Republic during 1991 to 2002, a period characterized by remarkable
 macroeconomic stability and growth. By developing a parsimonious and
 empirically stable error correction model using quarterly observations,
 the study finds that inflation is explained by changes in monetary
 aggregates, real output, foreign inflation and the exchange rate. Long-run
 relationships in the money and traded goods markets are found to exist,
 but only the disequilibrium from the money market exerts a significant
 impact on inflation. 
Journal: Applied Economics 
Pages: 407-414 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439085 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439085 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:407-414




Template-Type: ReDIF-Article 1.0
Author-Name: R. Todd Jewell 
Author-X-Name-First: R. Todd 
Author-X-Name-Last: Jewell 
Title: Prenatal care and birthweight production: evidence from South America 
Abstract:
  Research using US data has shown that increases in prenatal care have
 positive effects on birthweight and that the existence of unobserved
 health heterogeneity tends to reduce the measured effect of prenatal care.
 This study extends extant research to the South American countries of
 Bolivia, Brazil, Columbia and Peru using data from the demographic and
 health surveys, finding a positive effect of increased prenatal care use
 on birthweight. Furthermore, the largest marginal effect of increased
 prenatal care use is found at low levels of usage. The results highlight
 both the usefulness of existing methodologies for estimating the effect of
 prenatal care on birthweight and the importance of extending these
 methodologies to data from countries other than the USA. 
Journal: Applied Economics 
Pages: 415-426 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439028 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439028 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:415-426




Template-Type: ReDIF-Article 1.0
Author-Name: Francis Green 
Author-X-Name-First: Francis 
Author-X-Name-Last: Green 
Author-Name: Steven McIntosh 
Author-X-Name-First: Steven 
Author-X-Name-Last: McIntosh 
Title: Is there a genuine under-utilization of skills amongst the over-qualified? 
Abstract:
  Two theories of over-qualification are considered, namely mismatch,
 whereby workers do not find the most appropriate jobs for their skills,
 because of imperfect information or labour market rigidities, and
 'heterogeneous workers', whereby individuals with the same qualifications
 have different actual skill levels, so that they can be over-qualified in
 terms of formal qualifications, while their skills are actually
 appropriate for the jobs that they do. The evidence suggests that both
 theories are relevant in certain situations. 
Journal: Applied Economics 
Pages: 427-439 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427700 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427700 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:427-439




Template-Type: ReDIF-Article 1.0
Author-Name: Camilo Sarmiento 
Author-X-Name-First: Camilo 
Author-X-Name-Last: Sarmiento 
Author-Name: William Wilson 
Author-X-Name-First: William 
Author-X-Name-Last: Wilson 
Title: Spatially correlated exit strategies in the baking industry 
Abstract:
  This article uses a unique data set to analyse economic factors that
 explain firm exit and the interrelation across firms in space when
 exiting. Results show the effectiveness of modelling spatial correlation
 in a logit exit model. Indeed, in our application, reliable statistical
 results could only be drawn from our data when including spatial
 correlation in the model. 
Journal: Applied Economics 
Pages: 441-448 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438913 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438913 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:441-448




Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Veestraeten 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Veestraeten 
Title: The presence of target zone nonlinearities when narrower bands exist within official zones 
Abstract:
  The presence of target zone nonlinearities is generally refuted in
 empirical research. We argue that this may be due to estimation being
 performed vis-a-vis official limits when monetary authorities are in fact
 targeting a narrower band. Estimation results for the Belgian and French
 franc confirm that nonlinearities are present when narrower zones are
 accounted for. 
Journal: Applied Economics 
Pages: 449-452 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428104 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428104 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:449-452




Template-Type: ReDIF-Article 1.0
Author-Name: Miao-Ling Chen 
Author-X-Name-First: Miao-Ling 
Author-X-Name-Last: Chen 
Author-Name: Guan-Ru Chen 
Author-X-Name-First: Guan-Ru 
Author-X-Name-Last: Chen 
Title: The effects of advertising on resale price maintenance 
Abstract:
  This research combines the market power and market competition
 perspectives on advertising, under the framework of a generalized
 theoretical model in minimum resale price maintenance (RPM), in order to
 investigate the effects of advertising on RPM using the real options
 approach. The effects of advertising on retail price will impact the value
 of RPM, further, influence the incentive of manufacturers to impose RPM.
 Through brand penetration and promotional pricing effects, advertising is
 likely to influence RPM under the condition of retail price competition.
 When the brand penetration effect is dominant, advertising will discourage
 manufacturers from imposing RPM. Advertising will encourage manufacturers
 to impose RPM when the promotional pricing effect is dominant. RPM not
 only substitutes advertising, but also complements advertising. 
Journal: Applied Economics 
Pages: 453-459 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438863 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438863 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:453-459




Template-Type: ReDIF-Article 1.0
Author-Name: Giancarlo Marini 
Author-X-Name-First: Giancarlo 
Author-X-Name-Last: Marini 
Author-Name: Alessandro Piergallini 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Piergallini 
Author-Name: Pasquale Scaramozzino 
Author-X-Name-First: Pasquale 
Author-X-Name-Last: Scaramozzino 
Title: Inflation bias after the Euro: evidence from the UK and Italy 
Abstract:
  This article presents an indirect approach to investigate the possible
 existence of measurement error bias in the harmonized index of consumer
 prices for the UK and Italy. Our empirical results show that there is no
 significant evidence of a bias for the UK or for Italy prior to the
 introduction of the Euro. Since January 2002, however, the inflation rate
 in Italy has been underestimated by at least 6 percentage points. 
Journal: Applied Economics 
Pages: 461-470 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438962 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438962 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:461-470




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Clements 
Author-Name: Yihui Lan 
Author-X-Name-First: Yihui 
Author-X-Name-Last: Lan 
Title: Exchange rates, productivity, poverty and inequality 
Abstract:
  This article analyses differences in the wealth of nations by comparing
 PPP-based cross-country incomes from the Penn World Table with those
 derived from prevailing exchange rates. Using the Balassa (1964)-Samuelson
 (1964) productivity-bias framework, we introduce the 'international
 poverty line' and illustrate the implications for cross-country income
 inequality. We demonstrate that our results are not inconsistent with the
 previous literature when appropriately interpreted. 
Journal: Applied Economics 
Pages: 471-476 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439101 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439101 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:471-476




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Tongzon 
Author-X-Name-First: Jose 
Author-X-Name-Last: Tongzon 
Author-Name: Lavina Sawant 
Author-X-Name-First: Lavina 
Author-X-Name-Last: Sawant 
Title: Port choice in a competitive environment: from the shipping lines' perspective 
Abstract:
  The present era of globalization and regional competition has witnessed
 the increasing influence of the global operations of the shipping lines on
 port development and the declining monopoly of ports. This warrants the
 need for an identification of the port selection criteria from the
 perspective of the shipping lines. Hence, an attempt is made to determine
 the port choice from the perspective of the shipping lines. Moreover, most
 port operators have designed their strategies based on the 'stated
 preference' of the shipping lines. However, the stated preference approach
 can have several shortcomings such as the shipping lines would tend to
 overstate their demands for services at the port. This directs for an
 examination of the port choice of the shipping lines based on a revealed
 preference approach. The 'revealed preference' approach aims at judging
 the port choice of shipping lines purely from their 'actions' rather than
 what they actually 'state'. The empirical study in this article is based
 on a survey conducted among major shipping lines operating in Singapore
 and Malaysia. The findings have shown port charges and wide range of port
 services to be the only significant factors in their port choice.
 Moreover, the results show no consistency between the stated and revealed
 preferences of shipping lines. 
Journal: Applied Economics 
Pages: 477-492 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438871 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438871 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:477-492




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Arghyrou 
Author-X-Name-First: Michael 
Author-X-Name-Last: Arghyrou 
Title: The price effects of joining the euro: modelling the Greek experience using non-linear price-adjustment models 
Abstract:
  The widely-held hypothesis that accession to the EMU has caused a
 structural increase in Greek consumer prices is tested. No econometric
 evidence of such an effect is found. There is strong evidence of (a)
 multiple structural breaks in the process driving Greek equilibrium
 consumer prices and (b) non-linear price adjustment. The findings explain
 the post-EMU accession acceleration in Greek prices as normal,
 equilibrium-restoring behaviour. They also have important policy
 implications for the countries planning to join the euro in the
 foreseeable future. 
Journal: Applied Economics 
Pages: 493-503 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427221 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427221 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:493-503




Template-Type: ReDIF-Article 1.0
Author-Name: Joan-Ramon Borrell 
Author-X-Name-First: Joan-Ramon 
Author-X-Name-Last: Borrell 
Title: Pricing and patents of HIV/AIDS drugs in developing countries 
Abstract:
  This article provides empirical evidence on the impact of patents on drug
 prices across developing countries. It uses sales data on human
 immunodeficiency virus (HIV)/acquired immuno deficiency syndrome (AIDS)
 drugs in a sample of 34 low- and middle-income countries between 1995 and
 mid-2000. The main findings are that patents do shift drug prices up, drug
 prices are correlated to per capita income levels and drug firms follow a
 skimming strategy when pricing new HIV/AIDS drugs. That is, there is
 across country and intertemporal price discrimination in the global drug
 markets. 
Journal: Applied Economics 
Pages: 505-518 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438954 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438954 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:505-518




Template-Type: ReDIF-Article 1.0
Author-Name: J. Laurenceson 
Author-X-Name-First: J. 
Author-X-Name-Last: Laurenceson 
Title: Financial sector regulation, bank franchise values and savings mobilization 
Abstract:
  Empirical studies show that financial development exhibits a positive
 relationship with economic growth and the extent of poverty alleviation.
 Implementing policies that best promote financial development - such as
 mobilizing savings - are therefore, a matter of importance for all
 developing countries. A recent theoretical proposal that draws inspiration
 from the East Asian development experience hypothesises that by regulating
 to augment bank franchise values (i.e. the capitalized value of expected
 future profits accruing to banks), more savings can be mobilized compared
 with pursuing liberalization policies. This article provides an empirical
 test of this theory using a panel data set that covers 101 countries over
 the period 1994 to 2001. The results are not supportive of the theoretical
 proposal. In commenting on this result, it is noted that while intervening
 in the financial sector might not boost the aggregate quantity of savings
 mobilized, liberalization policies in developing countries should not
 necessarily be expedited, as other considerations are also clearly
 relevant. 
Journal: Applied Economics 
Pages: 519-525 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438905 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438905 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:519-525




Template-Type: ReDIF-Article 1.0
Author-Name: Fatih Ozatay 
Author-X-Name-First: Fatih 
Author-X-Name-Last: Ozatay 
Title: Public sector price controls and electoral cycles 
Abstract:
  Public enterprise prices are important policy instruments in developing
 economies. This is why public sector price polices constitute a key
 element of stabilization programmes implemented in these economies.
 However, this significance is not specific to stabilization episodes.
 First, this study questions whether an opportunistic politician can
 manipulate public prices to win elections. It analyses the impact of such
 price controls on budget deficits and the repercussions of alternative
 financing mechanisms of these deficits on the inflation rate and voters'
 behaviour. It is shown that electoral inflation cycles are obtained under
 domestic debt financing, whereas money financing does not permit such a
 manipulative policy. Second, by focusing on data of the Turkish economy
 for the 1987(1)-2003(12) period, empirical evidence for such manipulative
 policies is given. 
Journal: Applied Economics 
Pages: 527-539 
Issue: 4 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:527-539




Template-Type: ReDIF-Article 1.0
Author-Name: Joan Costa-Font 
Author-X-Name-First: Joan 
Author-X-Name-Last: Costa-Font 
Author-Name: Panos Kanavos 
Author-X-Name-First: Panos 
Author-X-Name-Last: Kanavos 
Author-Name: Joan Rovira 
Author-X-Name-First: Joan 
Author-X-Name-Last: Rovira 
Title: Determinants of out-of-pocket pharmaceutical expenditure and access to drugs in Catalonia 
Abstract:
  This article examines the determinants of the demand for pharmaceuticals
 in Catalonia using the latest available official survey data, having
 accounted for the individual differences in cost-sharing among consumers,
 as well as the influence of self-medication. The article builds a model of
 the (household) determinants of pharmaceutical expenditure and
 consumption. The econometric application deals with the infrequency of
 purchases and the nondistinction between out-of-pocket spending and drug
 cost sharing. Our results suggest that income and the variables accounting
 for the effect of cost sharing were significantly associated with drug use
 but not drug expenditure. Furthermore, gender, health status and having
 health insurance appear to be significant predictors. Access to pharmacies
 increases both drug use and expenditure; self-medication also increases
 drug expenditure out-of-pocket. These results are relevant for the entire
 Spanish case where current reform proposals have recommended the
 introduction of income-related (rather than age-related) co-payments. The
 same applies to the need for controlling self-medication which results
 from individual behaviour of consuming medicines for minor ailments
 without a prescription and which can be acquired OTC and are priced
 cheaply. 
Journal: Applied Economics 
Pages: 541-551 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438947 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438947 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:541-551




Template-Type: ReDIF-Article 1.0
Author-Name: Min-Hsin Huang 
Author-X-Name-First: Min-Hsin 
Author-X-Name-Last: Huang 
Author-Name: Eugene Jones 
Author-X-Name-First: Eugene 
Author-X-Name-Last: Jones 
Author-Name: David Hahn 
Author-X-Name-First: David 
Author-X-Name-Last: Hahn 
Title: Determinants of price elasticities for private labels and national brands of cheese 
Abstract:
  An Almost Ideal Demand System model is developed and used to estimate
 price elasticities for US cheese sold at retail. Growing consumption of
 cheese coupled with fierce competition between private labels and national
 brands serves as motivating factors for this study. Per capita consumption
 of cheese grew by 75% during 1980-2004 and private labels captured a
 rising share of this growth. Private labels today account for 35% of
 market share; national brands, for the remaining 65%. Kraft accounts for
 45% of national brands, but price increases for Kraft brands led to a
 sizeable price gap between its brands and private labels. This gap helped
 to stimulate growth of private labels. Marketing managers seek to
 capitalize on both growing cheese sales and price gaps for brands.
 Relevant information for marketing managers is consumer sensitivity to
 price changes. This study uses 69 weeks of scanner data, with consumers
 segmented by income levels to derive price elasticities for both lower-and
 higher-income consumers. Results show lower-income consumers to be more
 price sensitive. If large price gaps are maintained, the results suggest
 continued growth of private labels. Yet, meta-analyses for this study
 suggest that Kraft could lower the price gap and regain market share. 
Journal: Applied Economics 
Pages: 553-563 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439069 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439069 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:553-563




Template-Type: ReDIF-Article 1.0
Author-Name: Abhiman Das 
Author-X-Name-First: Abhiman 
Author-X-Name-Last: Das 
Author-Name: Sangeeta Das 
Author-X-Name-First: Sangeeta 
Author-X-Name-Last: Das 
Title: Scale economies, cost complementarities and technical progress in Indian banking: evidence from fourier flexible functional form 
Abstract:
  This article uses a multi-product Fourier flexible cost function
 specification to investigate scale economies, cost complementarities and
 technical progress of Indian banks during the post reform period 1992 to
 2003. The empirical results indicate that there exist significant
 economies of scale for all size classes of banks and there is no evidence
 of diseconomies of scale, even for larger banks. In particular, for small
 and medium-size banks, there is enough opportunity to increase output by
 either increasing the scale or merging with other banks to improve the
 average cost curve. The evidence is fairly robust even after controlling
 the impact of asset quality and overall risk exposure in the cost function
 specification. In addition, the statistical test confirms that the
 industry cost function does not have a Translog form. The results do not
 find any empirical evidence of cost complementarities between outputs. In
 terms of technical progress, Indian banks have experienced significant
 cost reduction which is as high as 5% for the recent period. However, the
 effects due to the scale augmenting and nonneutral components are found to
 be negligible. 
Journal: Applied Economics 
Pages: 565-580 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:565-580




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Moss 
Author-X-Name-First: Charles 
Author-X-Name-Last: Moss 
Author-Name: Ashok Mishra 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Mishra 
Author-Name: Kenneth Erickson 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Erickson 
Title: Next year on the US farmland market: an informational approach 
Abstract:
  This study formulates an information measure for changes in asset values
 and applies the formulation to farmland values in the United States for
 1960 to 1999. The results indicate that changes in asset values contained
 significant information following the Russian wheat sale in the early
 1970s and the financial crisis in agriculture in the mid 1980s. Further,
 information about preceding year's asset values largely explains the
 regional distribution of current year's farmland values. 
Journal: Applied Economics 
Pages: 581-585 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447831 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447831 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:581-585




Template-Type: ReDIF-Article 1.0
Author-Name: Heather Mitchell 
Author-X-Name-First: Heather 
Author-X-Name-Last: Mitchell 
Author-Name: Mark Stewart 
Author-X-Name-First: Mark 
Author-X-Name-Last: Stewart 
Title: A competitive index for international sport 
Abstract:
  This article constructs an index of competitiveness for different
 international sports. This is done by finding the national characteristics
 that are associated with sporting success and then noting the countries
 that participate in the different sports. This enables the various sports
 to be rated in terms of their competitiveness, thereby allowing judgements
 to be made regarding how difficult it is to be successful in these sports.
 Although a sports competitive index will no doubt be of interest to many
 armchair sporting experts, an answer to this question is also of
 importance when it comes to government policy with regard to funds
 directed to sport. 
Journal: Applied Economics 
Pages: 587-603 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447740 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447740 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:587-603




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Clements 
Author-Name: E. A. Selvanathan 
Author-X-Name-First: E. A. 
Author-X-Name-Last: Selvanathan 
Title: More on stochastic index numbers 
Abstract:
  There are three major approaches used to estimate index numbers. The
 first is Fisher's test approach whereby indexes are judged on their
 ability to satisfy certain criteria. The economic theory of index numbers
 is the second approach and this deals with their foundations in utility
 theory. The third approach is a less well-known methodology, but one which
 is now attracting considerable attention, the stochastic approach which is
 a new way of viewing index numbers in which uncertainty and statistical
 ideas play a central role. While providing a point estimate for the index
 number like the other two approaches, the stochastic approach additionally
 provides the SE of the point estimate. This article enhances understanding
 of stochastic index numbers by showing that they are formally equivalent
 to the familiar optimal combination of forecasts with the individual
 prices playing the role of n forecasts of the overall rate of inflation.
 This leads to new analytical results on the impact of adding additional
 information within the stochastic approach framework. We provide two
 concrete examples of the sources of such additional information: (i) the
 quantity theory of money; and (ii) the use of quantity data in addition to
 price data. We also illustrate some of these theoretical results using
 real data. 
Journal: Applied Economics 
Pages: 605-611 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439093 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:605-611




Template-Type: ReDIF-Article 1.0
Author-Name: David Madden 
Author-X-Name-First: David 
Author-X-Name-Last: Madden 
Title: Tobacco taxes and starting and quitting smoking: does the effect differ by education? 
Abstract:
  This article uses duration analysis to investigate the role of tobacco
 taxes in starting and quitting smoking. Applying a variety of parametric
 duration models to a sample of Irish women, it finds that in general
 tobacco taxes do influence starting and quitting smoking in the expected
 direction. It also finds that the effect for starting differs by education
 but in a nonmonotonic way, with the greatest effect for women with
 intermediate levels of education. The results for quitting suggest the
 greatest effect for women with the lowest level of education. These
 results are unchanged when account is taken of unobserved heterogeneity. 
Journal: Applied Economics 
Pages: 613-627 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447898 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447898 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:613-627




Template-Type: ReDIF-Article 1.0
Author-Name: Shujie Yao 
Author-X-Name-First: Shujie 
Author-X-Name-Last: Yao 
Author-Name: Chunxia Jiang 
Author-X-Name-First: Chunxia 
Author-X-Name-Last: Jiang 
Author-Name: Genfu Feng 
Author-X-Name-First: Genfu 
Author-X-Name-Last: Feng 
Author-Name: Dirk Willenbockel 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Willenbockel 
Title: WTO challenges and efficiency of Chinese banks 
Abstract:
  After joining the World Trade Organisation (WTO) in December 2001, China
 was given 5 years to completely open up its banking market for
 international competition. Chinese banks have been renowned for their
 mounting nonperforming loans and low efficiency. Despite gradual reforms,
 the banking system is still dominated by state ownership and encapsulated
 monopolistic control. How to raise efficiency is a key to the survival and
 success of domestic banks, especially the state-owned commercial banks.
 Two important factors may be responsible for raising efficiency: ownership
 reform and hard budget constraints. This article uses a panel data of 22
 banks over the period 1995 to 2001, and employs a stochastic frontier
 production function to investigate the effects of ownership structure and
 hard budget constraint on efficiency. Empirical results suggest that
 nonstate banks were 8-18% more efficient than state banks, and that banks
 facing a harder budget tend to perform better than those heavily
 capitalized by the state or regional governments. The results shed
 important light on banking sector reform in China to face the tough
 challenges after WTO accession. 
Journal: Applied Economics 
Pages: 629-643 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447799 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447799 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:629-643




Template-Type: ReDIF-Article 1.0
Author-Name: An-Sing Chen 
Author-X-Name-First: An-Sing 
Author-X-Name-Last: Chen 
Author-Name: Tai-Wei Zhang 
Author-X-Name-First: Tai-Wei 
Author-X-Name-Last: Zhang 
Title: Autocorrelation, structural breaks and the predictive ability of dividend yield 
Abstract:
  We study whether dividend yield (DY) can predict aggregate stock returns
 while controlling for the effects of structural breaks in the parameters
 and bias induced by autocorrelation in the predictor variable. To do so we
 apply the Bai and Perron (BP) (1998, 2000) methodology to test for
 structural breaks and the bias-adjusted predictability test of Lewellen
 (2004). We show that although DY predicts market returns during the period
 1946 to 1989, there exist 'natural' subsamples bounded by statistically
 detectable structural breaks that can last for long periods of time (up to
 11 years in duration) when DY does not show significant forecasting power.
 This has important implications in that even if in the long-run DY
 actually provides strong predictive ability, investors should be mentally
 prepared for long dry spells of unpredictability with respect to DY. 
Journal: Applied Economics 
Pages: 645-652 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447708 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447708 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:645-652




Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Hung Sun 
Author-X-Name-First: Chia-Hung 
Author-X-Name-Last: Sun 
Title: Economic integration, efficiency change and technological progress 
Abstract:
  This article examines the forces driving output growth in 21
 manufacturing industries at the 3-digit level in Hong Kong during the
 period 1976 to 1997. A varying frontier coefficients model is adopted that
 relaxes the assumption of homogeneous application of the best practice
 production technology. The varying coefficients frontier approach allows
 the decomposition of output growth into factor contributions,
 technological progress and efficiency change. Following the decomposition
 framework, it facilitates the investigation of the relative roles of the
 three components of output growth and of the manner in which technical
 efficiency changed over time. The article finds evidence of moderate
 annual TFP growth of 2.7% in Hong Kong manufacturing attributed mainly to
 technological progress. This implies technical efficiency gained through
 learning-by-doing has been insignificant, reflecting the loss of skilled
 labour associated with manufacturing relocation to mainland China. 
Journal: Applied Economics 
Pages: 653-662 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447690 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447690 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:653-662




Template-Type: ReDIF-Article 1.0
Author-Name: Patricio Perez 
Author-X-Name-First: Patricio 
Author-X-Name-Last: Perez 
Author-Name: Vicente Esteve 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Esteve 
Title: Trend breaks in the research and development process 
Abstract:
  This work examines the behaviour of the input and output measures of the
 R&D process in the United States, Germany, France and the United Kingdom,
 in the second half of the 20th century. The researcher and idea stock
 series can be construed as stationary fluctuations around a trend
 function, with a main breakpoint at the end of the 1960s. All the
 countries exhibit slower growth after their last breaks that during the
 decades preceding its first breaks. In this connection, the United States
 and Germany appear to represent the end points in the range of incidence. 
Journal: Applied Economics 
Pages: 663-674 
Issue: 5 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447666 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447666 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:663-674




Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Anderson 
Author-X-Name-First: Steffen 
Author-X-Name-Last: Anderson 
Author-Name: Glenn Harrison 
Author-X-Name-First: Glenn 
Author-X-Name-Last: Harrison 
Author-Name: Morten Lau 
Author-X-Name-First: Morten 
Author-X-Name-Last: Lau 
Author-Name: Rutstrom Elisabet 
Author-X-Name-First: Rutstrom 
Author-X-Name-Last: Elisabet 
Title: Valuation using multiple price list formats 
Abstract:
  We examine the properties of a popular method for elicitation of
 valuations from experimental subjects, the multiple price list format. The
 main advantages of this format are that it is relatively transparent to
 subjects and provides simple incentives for truthful revelation. The main
 disadvantages are that it only elicits interval responses, and could be
 susceptible to framing effects. We consider extensions to address and
 evaluate these concerns in the context of eliciting willingness to pay for
 products. We find that the multiple price list can elicit relatively
 precise valuations for products, and that those valuations are robust to
 possible framing effects. It therefore offers an attractive procedure for
 eliciting valuations for goods. 
Journal: Applied Economics 
Pages: 675-682 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500462046 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462046 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:675-682




Template-Type: ReDIF-Article 1.0
Author-Name: Anindita Chakrabarti 
Author-X-Name-First: Anindita 
Author-X-Name-Last: Chakrabarti 
Author-Name: Kausik Chaudhuri 
Author-X-Name-First: Kausik 
Author-X-Name-Last: Chaudhuri 
Title: Antenatal and maternal health care utilization: evidence from northeastern states of India 
Abstract:
  This article examines the role played by the various socio-economic and
 community level factors in determining the antenatal and maternal health
 care utilization pattern using the data from the National Family Health
 Survey carried out in India in 1998/99. Our analysis document that
 autonomy enjoyed by women and exposure to media has a significant impact
 on maternal heath care utilization even after controlling for other
 attributes, particularly their education and household economic status.
 Availability of a rural health facility in the village and other community
 level programme propagates the utilization of health care. 
Journal: Applied Economics 
Pages: 683-695 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439036 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439036 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:683-695




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Parker 
Author-X-Name-First: Simon 
Author-X-Name-Last: Parker 
Author-Name: Jonathan Rougier 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Rougier 
Title: The retirement behaviour of the self-employed in Britain 
Abstract:
  We analyze the retirement behaviour of older self-employed workers, using
 a life cycle framework and a multinomial logit model of dynamic employment
 and retirement choices. Using data from the two-wave Retirement Survey, we
 find that greater actual or potential earnings decrease the probability of
 retirement among the self-employed. In contrast to employees, none of
 gender, health or family circumstances appear to affect self-employed
 retirement decisions. The dynamic analysis reveals that relatively few
 employees and virtually no retirees switch into self-employment in later
 life. The switches that do occur are motivated less by attempts to use
 self-employment as a bridge job or 'stepping stone' to full retirement,
 than by self-employment being a last resort for less affluent workers with
 job histories of weak attachment to the labour market. We compare
 self-employed and employee retirement behaviour and discuss the policy
 implications of our results. 
Journal: Applied Economics 
Pages: 697-713 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447807 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447807 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:697-713




Template-Type: ReDIF-Article 1.0
Author-Name: Derek Braddorn 
Author-X-Name-First: Derek 
Author-X-Name-Last: Braddorn 
Author-Name: Keith Hartley 
Author-X-Name-First: Keith 
Author-X-Name-Last: Hartley 
Title: The competitiveness of the UK aerospace industry 
Abstract:
  Porter's five competitive forces model provides an analytical framework
 for assessing the UK aerospace industry's competitiveness in this article.
 Various statistical indicators are used to measure competitiveness, based
 on published data at the industry and firm level, supplemented with
 information from company interviews. The indicators include productivity,
 output, firm size, development time-scales, labour hoarding, exports and
 profitability. The empirical results of this article suggest that, over
 the period 1980 to 2000, the UK aerospace industry improved its
 competitiveness compared with the USA and the EU. 
Journal: Applied Economics 
Pages: 715-726 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500448391 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500448391 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:715-726




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Decker 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Decker 
Author-Name: Mark Wohar 
Author-X-Name-First: Mark 
Author-X-Name-Last: Wohar 
Title: Do increases in petroleum product prices put the incumbent party at risk in US presidential elections? 
Abstract:
  This article investigates the impact of petroleum product prices on
 recent United States' presidential elections by modelling the probability
 of the incumbent presidential party losing a state (under the United
 States' electoral college system) it had carried the previous presidential
 election. The main finding is that the probability of the incumbent party
 losing a state previously carried increases with petroleum product prices
 but only in those states that have primarily energy consuming economies.
 We also find that increases in the number of international conflicts,
 increases in real state per-capita income growth, and increases in state
 per capita grants-in-aid all reduce the likelihood of losing previously
 carried states while higher taxation growth increases this likelihood. 
Journal: Applied Economics 
Pages: 727-737 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600735408 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735408 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:727-737




Template-Type: ReDIF-Article 1.0
Author-Name: Suchismita Mishra 
Author-X-Name-First: Suchismita 
Author-X-Name-Last: Mishra 
Author-Name: Arun Prakash 
Author-X-Name-First: Arun 
Author-X-Name-Last: Prakash 
Author-Name: Gordon Karels 
Author-X-Name-First: Gordon 
Author-X-Name-Last: Karels 
Author-Name: Therese Pactwa 
Author-X-Name-First: Therese 
Author-X-Name-Last: Pactwa 
Title: Skewness preference and the measurement of abnormal returns 
Abstract:
  In performing an empirical analysis of stock market returns there are
 certain conditions under which the quadratic characteristic line (QCL)
 will be the appropriate return-generating process compared to the linear
 characteristic line (LCL). These conditions are whether the parameter
 associated with the squared market term (the deviation from the mean) is
 significantly different from zero and whether the return on the market
 portfolio is asymmetrically distributed (or skewness is present).
 Examining abnormal returns surrounding stock splits, we find that these
 conditions hold for our data set. Having ascertained that the conditions
 for QCL hold, we find that the cumulative average returns (CARs) obtained
 using QCL dominate the CARs obtained using LCL in the event time and the
 CAR space for the dividend-increase sub-sample. Furthermore, the
 standardized abnormal returns for the QCL model are significantly
 different than those obtained using the LCL model. We find that neither
 the LCL nor the QCL paradigm reveals any statistically significant
 abnormal return for the dividend-decrease group. However, for the
 dividend-decrease group, the CARs for the LCL model dominate the CARs for
 the QCL model. The standardized abnormal returns for the QCL model are
 also significantly different than those of the LCL model. Using QCL, we
 find support for the signalling hypothesis of dividends. We also find that
 the extent of investor reaction obtained using QCL is statistically
 significantly different than that obtained using the LCL. 
Journal: Applied Economics 
Pages: 739-757 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439077 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439077 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:739-757




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Strobel 
Author-X-Name-First: Frank 
Author-X-Name-Last: Strobel 
Title: Southeast Asian monetary integration: a real options perspective 
Abstract:
  We examine the real option implicit in countries' decisions of whether to
 join a monetary union and calibrate our theoretical model for the core
 ASEAN/AFTA group of Indonesia, Malaysia, Philippines, Singapore and
 Thailand. None of the countries would be prepared to join a monetary union
 amongst them at present, and most have low to negligible probabilities of
 ever wanting to do so. 
Journal: Applied Economics 
Pages: 759-763 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428005 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:759-763




Template-Type: ReDIF-Article 1.0
Author-Name: Shailendra Gajanan 
Author-X-Name-First: Shailendra 
Author-X-Name-Last: Gajanan 
Author-Name: D. Malhotra 
Author-X-Name-First: D. 
Author-X-Name-Last: Malhotra 
Title: Measures of capacity utilization and its determinants: a study of Indian manufacturing 
Abstract:
  We estimate Capacity Utilization (CU) rates in for selected industries in
 Indian manufacturing for the 20-year period 1976-1996. We estimate a
 generalized Leontief variable cost function, with capital as a quasi fixed
 input, to derive our CU measures, using error-component techniques. We
 note substantial variations in CU both across industries and over time. In
 general, we find that CU rates were higher in the earlier time-period,
 dropped in the mid-80s and started rising again in the early 90s. CU rates
 in our analysis are sensitive to input prices with the sole exception of
 the price of labor. We also confirm the standard result that variations in
 demand are a significant driving force for variations in CU. We find that
 CU is positively related to the magnitude of labor intensity in
 production. This holds for both between-industries and within-industries.
 Empirical results also indicate that traditional measures of CU such as
 minimum capital output ratio and peak-to-peak are not appropriate proxies
 for the short-run decision making of the firm regarding CU. As compared to
 the estimates derived from the choice-theoretic framework, we find that
 the traditional measures exhibit substantial bias. 
Journal: Applied Economics 
Pages: 765-776 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447732 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:765-776




Template-Type: ReDIF-Article 1.0
Author-Name: John Whitehead 
Author-X-Name-First: John 
Author-X-Name-Last: Whitehead 
Author-Name: Richard Aiken 
Author-X-Name-First: Richard 
Author-X-Name-Last: Aiken 
Title: Temporal reliability of willingness to pay from the National Survey of Fishing, Hunting and Wildlife-Associated Recreation 
Abstract:
  The US Fish and Wildlife Service's (USFWS) National Survey of Fishing,
 Hunting and Wildlife-Associated Recreation (FHWAR) has been a source of
 information on wildlife-related recreation since 1955. The contingent
 valuation method has been used to estimate willingness to pay for
 recreation trips in the 1980, 1985, 1991, 1996 and 2001 surveys. However,
 relatively little comparative analysis over time has been performed.
 Similar value elicitation formats were used in the 1991 and 1996 surveys
 for bass and trout fishing, deer hunting and nonconsumptive wildlife
 recreation. We statistically analyze these data to assess the temporal
 reliability of the willingness to pay. We control for the effects of trip
 quality and socioeconomic variables and find that willingness to pay is
 significantly lower in 1996 for each activity. A subtle, but important,
 change in the 1996 question format may drive the result of lower
 willingness to pay. 
Journal: Applied Economics 
Pages: 777-786 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438996 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438996 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:777-786




Template-Type: ReDIF-Article 1.0
Author-Name: Santiago Budria 
Author-X-Name-First: Santiago 
Author-X-Name-Last: Budria 
Author-Name: Pedro Telhado Pereira 
Author-X-Name-First: Pedro Telhado 
Author-X-Name-Last: Pereira 
Title: The wage effects of training in Portugal: differences across skill groups, genders, sectors and training types 
Abstract:
  This article investigates the determinants and wage effects of training
 in Portugal. In a first stage, we show that there are considerable
 differences in training participation across groups of workers, with elder
 and low educated individuals participating substantially less. In a second
 stage, we show that training has a positive and significant impact on
 wages. The estimated wage return is about 30% for men and 38% for women.
 Discriminating between levels of education and working experience and the
 public and private sector reveals important differences across categories
 of workers. We find that women, low educated workers and workers with long
 working experience earn larger returns from training. The average effect
 of training is similar in the private sector and the public sector.
 However, differences across experience groups are larger in the private
 sector, while differences across education groups are larger in the public
 sector. We use three alternative classifications of training activities
 and find that training in the firm, training aimed to improve skills
 needed at the current job and training with duration less than a year are
 associated to larger wage gains. 
Journal: Applied Economics 
Pages: 787-807 
Issue: 6 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447757 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447757 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:787-807




Template-Type: ReDIF-Article 1.0
Author-Name: Oguzhan Dincer 
Author-X-Name-First: Oguzhan 
Author-X-Name-Last: Dincer 
Title: The effects of property rights on economic performance 
Abstract:
  This study augments the neoclassical growth model proposed by Mankiw et
 al. (1992) to analyse the effects of the property rights protection on the
 levels of economic performance, measured by per capita gross domestic
 product (GDP), across countries. The augmented model predicts that (1) the
 accumulation of physical and human capital and therefore the level of per
 capita GDP in a country, is positively related with the degree of property
 rights protection as well as with the saving rates and (2) the effects of
 the saving rates on the level of per capita GDP in a country are
 positively related with the degree of property rights protection.
 Empirical evidence shows that the predictions of the augmented model are
 consistent with the variations in the levels of per capita GDP across
 countries. 
Journal: Applied Economics 
Pages: 825-837 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461964 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461964 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:825-837




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel 
Author-X-Name-First: Rajeev 
Author-X-Name-Last: Goel 
Title: Costs of smoking and attempts to quit 
Abstract:
  Using recent cross-sectional state-level data for the US, this article
 examines smoking quitting behaviour by smokers. In particular, we uniquely
 focus on how the costs of smoking, both direct and indirect costs, induce
 smokers to quit. Results show that the price of cigarettes and home
 smoking restrictions are the primary thrusts behind smokers' quit
 decision. The indirect costs due to workplace smoking restrictions,
 medical costs and a lack of insurance do not seem to significantly matter.
 The habit-forming effect of cigarettes is shown to lead to greater quit
 attempts. Policy implications are discussed. 
Journal: Applied Economics 
Pages: 853-857 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439119 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439119 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:853-857




Template-Type: ReDIF-Article 1.0
Author-Name: Giuliana Battisti 
Author-X-Name-First: Giuliana 
Author-X-Name-Last: Battisti 
Author-Name: P. Stoneman 
Author-X-Name-First: P. 
Author-X-Name-Last: Stoneman 
Title: The prices of material and intermediate inputs in UK manufacturing: identifying the contributions of world prices and domestic factor costs 
Abstract:
  In this article, we explore the patterns and determinants of the prices
 of raw material and intermediate inputs (MIIs) to UK manufacturing as
 measured by the net (n) and gross (g) producer price indexes of materials
 and fuels (PIMF). Despite the importance of MII in total manufacturing
 costs their prices have been little studied. It is shown that these prices
 are Granger independent of the demand for such inputs and thus a simple
 cost based model of price determination is constructed. This model
 forecasts that MII prices are functions of world prices for oil,
 commodities and semi-manufactured products intermediated by exchange rates
 and duties, domestic factor prices and a trend reflecting domestic
 technical change, changes in mark ups and change in weights. By the means
 of an error correction representation it is found that PIMFn and PIMFg, in
 the long and short-run, are more sensitive to overseas-determined prices
 (of oil, commodities and semi-manufactured products) than domestically
 determined prices (labour, capital and the trend). It may be argued that
 to some considerable degree therefore the prices of material and
 intermediate inputs in UK manufacturing will not be particularly sensitive
 to policy actions. 
Journal: Applied Economics 
Pages: 859-882 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461832 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461832 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:859-882




Template-Type: ReDIF-Article 1.0
Author-Name: Jer-Shiou Chiou 
Author-X-Name-First: Jer-Shiou 
Author-X-Name-Last: Chiou 
Author-Name: Pei-Shan Wu 
Author-X-Name-First: Pei-Shan 
Author-X-Name-Last: Wu 
Author-Name: Antony Chang 
Author-X-Name-First: Antony 
Author-X-Name-Last: Chang 
Author-Name: Bor-Yi Huang 
Author-X-Name-First: Bor-Yi 
Author-X-Name-Last: Huang 
Title: The asymmetric information and price manipulation in stock market 
Abstract:
  The interaction between asymmetrically informed traders has been mostly
 investigated in theoretical frameworks. Not only there are relatively few
 empirical studies but, if any, the mostly focus on cross-sectional
 analysis and use very short samples. In this study, we blend theoretic
 with empirical, and propose a new signalling system of turning points in
 the economy to examine the extent of volatility of these markets relative
 to their tranquil periods. The signalling system proposed here is based on
 the Markov-switching model. Differing from the existing literatures, the
 study employs three phases and time-varying transition probability, and
 captures the states of volatility. After examining the causality between
 high volatility and foreign portfolio investment (FPI) by using moving
 average and generalized autoregressive conditional heteroskedasticity, the
 portfolio's profitability of FPI and individual investors in different
 periods are compared. Finally, the investigation of FPI's leading effect
 is studied. 
Journal: Applied Economics 
Pages: 883-891 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500462038 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:883-891




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Cortinhas 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Cortinhas 
Title: Intra-industry trade and business cycles in ASEAN 
Abstract:
  A new resolve for both increased economic integration and monetary and
 exchange rate cooperation has started to emerge in the Association of
 Southeast Asian Nations (ASEAN), especially since the 1997-1998 Asian
 financial crisis. According to the optimum currency area theory, the
 degree of trade integration is one of the most important criteria for
 joining a currency union. The large increase in intra-ASEAN trade in
 recent years raises the question of whether the ASEAN countries are
 becoming better prepared to form a currency union. This article sets to
 test whether the recorded increase in intra-ASEAN trade is leading the
 ASEAN members to closer economic integration and thus to better satisfy
 the criteria for a common currency. Two separate models are estimated for
 that purpose. First, a variation of the model of Frankel and Rose (1997)
 was estimated for the ASEAN members. Next, a new panel data methodology
 was conducted. The results with our own model were very significant and
 robust when four of the ASEAN5 countries were considered, and showed a
 clear positive correlation between intra-industry trade and business cycle
 synchronization in ASEAN. This result has important implications for the
 prospects of the creation of a common currency in the region. 
Journal: Applied Economics 
Pages: 893-902 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461907 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461907 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:893-902




Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Lin Tao 
Author-X-Name-First: Hung-Lin 
Author-X-Name-Last: Tao 
Author-Name: Chia-Hung Li 
Author-X-Name-First: Chia-Hung 
Author-X-Name-Last: Li 
Title: The impact of sectoral shifts and the aggregate labour market on unemployment duration 
Abstract:
  This study investigates the effects of sectoral shifts among industries
 on unemployment duration. These effects are decomposed into two
 subeffects: the overall effect and the specific industrial effect. The
 former is equal for all of the unemployed in all industries, while the
 latter depends on the tightness of the demand for labour of the industry
 in question. In addition, the impact of the aggregate labour market on
 unemployment duration is also explored. The empirical results show that
 most of the overall and all of the specific effects are significant,
 indicating that the sectoral shifts among industries as well as the
 aggregate labour market do in fact impact unemployment duration, and that
 the effects on unemployment duration vary in terms of their tightness in
 the different industrial labour markets. 
Journal: Applied Economics 
Pages: 915-926 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461923 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461923 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:915-926




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Garcia-Iglesias 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Garcia-Iglesias 
Title: How the European Central Bank decided its early monetary policy? 
Abstract:
  The main goal of this paper is to detect the mechanisms that should
 rationally stimulate the decision making-policies of the European Central
 Bank (ECB). This is carried out under the framework of theoretical
 principles of interest rate rules. Firstly, we deduce a set of logically
 advisable guidelines for the strategy actually developed by this central
 bank. Then we contrast a wide set of hypotheses with reference to those
 variables the ECB takes into account on deciding its monetary policy, with
 a flexible treatment regarding the number of months of advance or delay in
 the explanatory variables. The results lead us to the conclusion that the
 ECB, besides adopting a smooth strategy, especially bears in mind the
 expected core inflation rate, with a reaction coefficient adjusted to that
 initially proposed by Taylor. The economic growth rate, though it has a
 significant positive coefficient, matters relatively little and is
 backward looking. Finally, we evaluate up to what point the behaviour of
 the ECB is assimilative to an inflation targeting framework, solving this
 question affirmatively. 
Journal: Applied Economics 
Pages: 927-936 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461931 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461931 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:927-936




Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende 
Author-X-Name-First: Marcelo 
Author-X-Name-Last: Resende 
Title: Structure, conduct and performance: a simultaneous equations investigation for the Brazilian manufacturing industry 
Abstract:
  The article investigated structure-conduct-performance (SCP)
 relationships in the context of the Brazilian manufacturing industry in
 1996. For that purpose, it considered a system with four equations
 pertaining concentration, advertising, R&D and profitability that was
 estimated with simultaneous equation models. In addition to the usual
 explanatory variables proxying barriers to entry and demand conditions,
 the article considered organizational practices and incentive schemes
 variables. The evidence indicated an important role for variables related
 to barriers to entry in affecting market structure, an important and
 nonlinear effect of concentration on advertising, a relevant impact of
 firm-size on the propensity to exert R&D effort and finally a significant
 positive impact of concentration on profitability, and were similar to the
 previous evidence for developed countries. Additionally, no important
 roles were detected for organizational practices and incentive schemes on
 the SCP relationships. 
Journal: Applied Economics 
Pages: 937-942 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461949 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461949 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:937-942




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Tasiran 
Author-X-Name-First: Ali 
Author-X-Name-Last: Tasiran 
Author-Name: Kerem Tezic 
Author-X-Name-First: Kerem 
Author-X-Name-Last: Tezic 
Title: Early labour-market experiences of second-generation immigrants in Sweden 
Abstract:
  This article investigates second generation immigrant's early
 labour-market performances in Sweden. To study their labour-market success
 we estimate dynamic transition rate models-Cox type proportional hazards,
 in a competing risk framework using register based panel-data set. Our
 results reveal that parental resources affect not only second-generation
 immigrants' continuing education but also their later labour-market
 success. The study verifies that finding a job is difficult for
 second-generation immigrants and the significant unobserved-heterogeneity
 parameter estimate may indicate discrimination. As a whole,
 second-generation immigrants have worse labour-market performances
 compared to their native-born counterparts. 
Journal: Applied Economics 
Pages: 809-824 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461915 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461915 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:809-824




Template-Type: ReDIF-Article 1.0
Author-Name: Roger White 
Author-X-Name-First: Roger 
Author-X-Name-Last: White 
Title: Immigrant-trade links, transplanted home bias and network effects 
Abstract:
  Macro-level data for the US and 73 trading partners spanning the years
 1980 to 2001 is used with a gravity specification to investigate the
 influence of immigration on bilateral trade. Prior research has identified
 immigrant stocks as a significant determinant of trade; however, this
 study indicates that the US immigrant-trade link is driven by immigration
 from relatively low income countries. A 10% increase in the immigrant
 stock is found to generate respectively 4.7 and 1.5% increases in domestic
 imports from and exports to the typical low income home country. The
 observed link is decomposed into two hypothesized channels-network effects
 and transplanted home bias. Considerable variation in per-immigrant trade
 effects is found across home countries: imports from the typical low
 income home country are estimated to increase by up to $2057 due to
 transplanted home bias and by as much as $2967 as a result of network
 effects, while exports rise by up to $910 as a result of networks. 
Journal: Applied Economics 
Pages: 839-852 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447849 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447849 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:839-852




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chih Lee 
Author-X-Name-First: Ming-Chih 
Author-X-Name-Last: Lee 
Author-Name: Wan-Hsiu Cheng 
Author-X-Name-First: Wan-Hsiu 
Author-X-Name-Last: Cheng 
Title: Correlated jumps in crude oil and gasoline during the Gulf War 
Abstract:
  This article employs a bivariate poisson jump model to investigate the
 relationship between the volatility of crude oil and gasoline especially
 during the period of the Gulf War. We find that greater jumps occurring in
 crude oil returns will appear in gasoline returns at the same time, but
 the magnitude of the co-movements in volatility falls. The covariance is
 relatively smaller in the Second Gulf War vs. the first conflict. The
 volatility of crude oil is of significantly high levels during periods of
 the war, yet the volatility of gasoline is not as sensitive as crude oil,
 particularly in the second conflict. Furthermore, the jump that occurred
 by the war did not lead both spot prices to a high persistent level for a
 long period, which fits the feature of the jump models. All these findings
 are important to market traders and hedging strategies. 
Journal: Applied Economics 
Pages: 903-913 
Issue: 7 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500474249 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474249 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:903-913




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses 
Author-X-Name-First: Philip Hans 
Author-X-Name-Last: Franses 
Title: Estimating the stock of postwar Dutch postal stamps 
Abstract:
  This article seeks to find an answer to the question: 'How many stamps
 are still around, given that we know their prices at issue, the current
 price and the amount then issued?' For this purpose, I develop a simple
 statistical model, the parameters of which are estimated for over 1000
 postwar Dutch stamps. One finding is that some stamps are very scarce,
 that is, less than 100 copies must be around. 
Journal: Applied Economics 
Pages: 943-946 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840701243641 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701243641 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:943-946




Template-Type: ReDIF-Article 1.0
Author-Name: Saang Joon Baak 
Author-X-Name-First: Saang Joon 
Author-X-Name-Last: Baak 
Author-Name: M. A. Al-Mahmood 
Author-X-Name-First: M. A. 
Author-X-Name-Last: Al-Mahmood 
Author-Name: S. Vixathep 
Author-X-Name-First: S. 
Author-X-Name-Last: Vixathep 
Title: Exchange rate volatility and exports from East Asian countries to Japan and the USA 
Abstract:
  The purpose of this article is to investigate the impact of exchange rate
 volatility on exports in four East Asian countries (Hong Kong, South
 Korea, Singapore, and Thailand). Specifically, this article aims at
 determining whether the bilateral real exchange rate volatility between an
 East Asian country and its trading partner negatively affects the exports
 of the East Asian country. Considering the dominant roles of the USA and
 Japan as trading partners of those East Asian countries, this article
 focuses on the quarterly export volumes of East Asian countries to the US
 and Japan for the period from 1981 to 2004. Except for the case of Hong
 Kong's exports to Japan, cointegration tests and estimations of error
 correction models indicate exchange rate volatility has negative impacts
 on exports either in the short-run or in the long-run, or both. On the
 other hand, the real GDP of importing countries and depreciation of real
 bilateral exchange rates turn out, in general, to have positive effects.
 Of special interest is the finding that the impact of the exchange rate
 volatility does not show any stylized differences depending on whether the
 importing country is Japan or the USA, even though dollar invoicing
 dominates in East Asia. 
Journal: Applied Economics 
Pages: 947-959 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500474231 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474231 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:947-959




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Abera Gelan 
Author-X-Name-First: Abera 
Author-X-Name-Last: Gelan 
Title: Real and nominal effective exchange rates for African countries 
Abstract:
  The real effective exchange rate is an index that is used to measure
 international competitiveness of a country. While the International
 Monetary Fund constructs and publishes the index for all industrial and
 some newly industrialized countries, the African nations receive no such
 attention. In this article we construct quarterly indexes of real and
 nominal effective exchange rates over the 1971I-2004III period for 21
 African countries. We hope by publishing this data set, more research
 attention will be given to these countries. As an application, we test for
 the stationarity of the real effective rates to show that the Purchasing
 Power Parity theory holds only in four of our 21 cases. 
Journal: Applied Economics 
Pages: 961-979 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447922 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447922 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:961-979




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Wilson 
Author-X-Name-First: Peter 
Author-X-Name-Last: Wilson 
Author-Name: Keen Meng Choy 
Author-X-Name-First: Keen Meng 
Author-X-Name-Last: Choy 
Title: Prospects for enhanced exchange rate cooperation in East Asia: some preliminary findings from generalized PPP theory 
Abstract:
  The Asian financial crisis increased economic disparities in the East
 Asian (EA) region, thus making monetary integration more difficult, but
 rekindled political interest in Asian monetary and exchange rate
 cooperation. This article applies the theory of Generalized Purchasing
 Power Parity (G-PPP), which looks at the behaviour of long-run real
 exchange rates, to assess the potential for an optimum currency area (OCA)
 among a subset of EA countries based on five of the more advanced members
 of the Association of Southeast Asian Nations (ASEAN5). Our findings
 suggest little support for an OCA for ASEAN5 as a bloc prior to the Asian
 financial crisis and mixed results in the post-crisis period. In
 particular, asymmetries in the way countries adjust to shocks and low or
 insignificant speeds of adjustment were found. Thus, although the
 application of single OCA criteria is notoriously demanding and our tests
 apply to only one of the many criteria for the successful formation of an
 OCA, we cannot find persuasive evidence that ASEAN5 as a group constitute
 a potential currency area with either the USA or Japan, even when the
 'noisy' period of the Asian financial crisis is omitted. 
Journal: Applied Economics 
Pages: 981-995 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500497042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500497042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:981-995




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Marquez de la Cruz 
Author-X-Name-First: Elena Marquez de la 
Author-X-Name-Last: Cruz 
Author-Name: Ana Martinez-Canete 
Author-X-Name-First: Ana 
Author-X-Name-Last: Martinez-Canete 
Author-Name: Ines Perez-Soba Aguilar 
Author-X-Name-First: Ines Perez-Soba 
Author-X-Name-Last: Aguilar 
Title: Intertemporal preference parameters for some European monetary union countries 
Abstract:
  In the European Monetary Union, the estimation and analysis of preference
 parameters in its members is of special interest because possible
 differences could help us to understand why a common monetary policy could
 have different effects on the different economies involved. In this
 article, we have focused our attention on the elasticity of intertemporal
 substitution, one of the key preference parameters in intertemporal
 macroeconomic models. Several studies have shown a possible
 underestimation of such elasticity for different countries. It is common
 practice to estimate the parameter using only nondurable goods and
 services consumption data, without referring to the flow of services
 generated by durable consumption. This is only admissible if the
 intratemporal utility can be separated among the different consumption
 components. Our first objective is, therefore, to test the assumption of
 intratemporal separability for a selection of European countries (Germany,
 Spain and France), and then to analyse the effect of durable consumption
 on the estimated values of the intertemporal elasticity of substitution of
 these countries, our ultimate goal. Knowledge of such elasticity will
 enable us to characterise how saving in these economies reacts to
 variations in the real interest rate. 
Journal: Applied Economics 
Pages: 997-1011 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500462012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462012 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:997-1011




Template-Type: ReDIF-Article 1.0
Author-Name: HuiChen Chiang 
Author-X-Name-First: HuiChen 
Author-X-Name-Last: Chiang 
Title: Commercial loan borrower's optimal borrowing and prepayment decisions under uncertainty 
Abstract:
  We model a firm which faces continuing stochastic money needs and
 fluctuating interest rates. The borrower minimizes the expected present
 value of the sum of interest payments and prepayment penalty costs subject
 to a liquidity constraint. Since contingent opportunities are absent from
 the model, we find (i) the firm should not inventory cash, (ii) the firm
 should prepay the maximum amount possible if it prepays at all. 
Journal: Applied Economics 
Pages: 1013-1020 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461972 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461972 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1013-1020




Template-Type: ReDIF-Article 1.0
Author-Name: Dan Axelsen 
Author-X-Name-First: Dan 
Author-X-Name-Last: Axelsen 
Author-Name: Dan Friesner 
Author-X-Name-First: Dan 
Author-X-Name-Last: Friesner 
Author-Name: Robert Rosenman 
Author-X-Name-First: Robert 
Author-X-Name-Last: Rosenman 
Author-Name: Hal Snarr 
Author-X-Name-First: Hal 
Author-X-Name-Last: Snarr 
Title: Welfare recipient work choice and in-kind benefits in Washington state 
Abstract:
  We analyze the work choice of welfare recipients. Potential welfare
 recipients compare their on and off welfare utility from after-tax income
 and in-kind benefits via employment or welfare, and choose whether to
 work. Our null hypothesis, which we reject, is that benefits affect only
 the decision to work or not, not the hours worked, which will depend on
 wages. Using Temporary Assistance for Needy Families (TANF) administrative
 data from Washington state, we find that employer provided health
 insurance and child care subsidies significantly raise exit rates of TANF
 recipients and induce greater work effort. Other work inducing factors
 include wages and the Earned Income Tax Credit, while increased levels of
 Medicaid, Food Stamps and the income guarantee increase welfare
 dependency. 
Journal: Applied Economics 
Pages: 1021-1036 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461865 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461865 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1021-1036




Template-Type: ReDIF-Article 1.0
Author-Name: J. W. Fedderke 
Author-X-Name-First: J. W. 
Author-X-Name-Last: Fedderke 
Author-Name: J. M. Luiz 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Luiz 
Title: Fractionalization and long-run economic growth: webs and direction of association between the economic and the social -- South Africa as a time series case study 
Abstract:
  Recent cross-sectional growth studies have found that ethnolinguistic
 fractionalization is an important explanatory variable of long-run growth
 performance. In the present article, we follow the call of earlier studies
 to conduct a more detailed clinical analysis of the growth experience of a
 specific country. South Africa constitutes an interesting case in which to
 explore these questions. The results of this study provide important
 nuance to the existing body of evidence. We find that fractionalization is
 subject to strong change over time. In addition, we find strong evidence
 of webs of association between the various social, political and
 institutional dimensions. Thus various forms of social cleavage tend to go
 hand in hand, which presents the danger of spurious inference of
 association. Further, the direction of association in the preponderance of
 cases runs from economic to social, political and institutional variables,
 rather than the other way around. However, there remain significant
 impacts from some, but only some fractionalization indexes on economic
 growth. Which social cleavage, when, how and for what period of time will
 depend on the historical path of specific societies. 
Journal: Applied Economics 
Pages: 1037-1052 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461899 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461899 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1037-1052




Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende 
Author-X-Name-First: Marcelo 
Author-X-Name-Last: Resende 
Title: Determinants of firm start-up size in the Brazilian industry: an empirical investigation 
Abstract:
  The article investigates the determinants of newly created industrial
 establishments in Brazil in 1997 taking as reference explanatory variables
 referring to market structure and industry dynamics, stronger effects are
 detected for larger firms. Minimum efficient scale, industry size,
 industry growth and turbulence display the expected positive effects on
 firm size, but the intensity of those are more pronounced for larger
 firms. The suboptimal scale variable, on the other hand, exhibits a
 counterintuitive positive effect and perhaps other types of barriers to
 entry that are not related to scale aspects may be important in the
 Brazilian case. 
Journal: Applied Economics 
Pages: 1053-1058 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461998 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461998 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1053-1058




Template-Type: ReDIF-Article 1.0
Author-Name: Yehning Chen 
Author-X-Name-First: Yehning 
Author-X-Name-Last: Chen 
Author-Name: Shing-Yang Hu 
Author-X-Name-First: Shing-Yang 
Author-X-Name-Last: Hu 
Title: The controlling shareholder's personal leverage and firm performance 
Abstract:
  This article examines the relationship between firm performance and its
 controlling shareholder's personal loans. We present a model that allows
 the controlling shareholder to finance company projects through personal
 loans. Using personal loans, however, will create an incentive for
 controlling shareholders to pursue risky projects. We test our predictions
 using a sample of companies from Taiwan and find supporting evidence. We
 find that firms with a higher personal loan will have a higher risk and
 worse performance in the future. We also find that the positive relation
 between risk and personal leverage is time varying: the relation gets
 stronger in bad times. 
Journal: Applied Economics 
Pages: 1059-1075 
Issue: 8 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500462004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462004 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1059-1075




Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Menkhoff 
Author-X-Name-First: Lukas 
Author-X-Name-Last: Menkhoff 
Author-Name: Chodechai Suwanaporn 
Author-X-Name-First: Chodechai 
Author-X-Name-Last: Suwanaporn 
Title: On the rationale of bank lending in pre-crisis Thailand 
Abstract:
  Evidence from credit files is provided to examine bank lending
 determinants of Thai commercial banks. Their lending practice follows
 reasonable patterns as a standard set of variables, including indirect
 risk variables, explains much of the variance in interest rate spread.
 Reflecting institutional differences with mature markets, we find a higher
 importance of relationship banking and risk control via credit
 availability. Information about later default reveals prudent relationship
 lending. However, banks could have made better use of available
 information about borrowers' riskiness. These findings do not support a
 general verdict of bad banking but indicate room to improve lending
 decisions. 
Journal: Applied Economics 
Pages: 1077-1089 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447815 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447815 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1077-1089




Template-Type: ReDIF-Article 1.0
Author-Name: Haesun Park 
Author-X-Name-First: Haesun 
Author-X-Name-Last: Park 
Author-Name: James Mjelde 
Author-X-Name-First: James 
Author-X-Name-Last: Mjelde 
Author-Name: David Bessler 
Author-X-Name-First: David 
Author-X-Name-Last: Bessler 
Title: Time-varying threshold cointegration and the law of one price 
Abstract:
  A theoretical model of the law of one price which allows for seasonality
 in transaction costs and supply and demand conditions between markets is
 developed. Bivariate three-regime threshold vector error correction models
 are applied to natural gas markets to examine seasonality in threshold
 levels. Results indicate that there are nonlinear adjustments to the law
 of one price in seven pair-wise markets (Chicago is used as the base
 market). In the natural gas sector, dynamic threshold effects relative to
 the Chicago market vary depending on season, geographical location and
 whether the market is an excess producing or consuming market. 
Journal: Applied Economics 
Pages: 1091-1105 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500486540 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486540 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1091-1105




Template-Type: ReDIF-Article 1.0
Author-Name: Nancy Mohan 
Author-X-Name-First: Nancy 
Author-X-Name-Last: Mohan 
Author-Name: John Ruggiero 
Author-X-Name-First: John 
Author-X-Name-Last: Ruggiero 
Title: Influence of firm performance and gender on CEO compensation 
Abstract:
  In this article we continue the examination of top executive pay by
 comparing performance, total pay and the influence of CEO gender. We
 analyse compensation differences between male and female CEOs using
 nonparametric analysis. We calculate the potential compensation for each
 executive using two benchmarks. First, each executive's performance and
 compensation are evaluated relative to members of the same gender to
 produce a same-gender measure of under-compensation. Each executive's
 compensation is also benchmarked against the other gender's potential
 compensation, producing an other-gender measure of under-compensation.
 Together, both measures allow an analysis of the gender-specific potential
 salaries of each executive while controlling for performance. The approach
 is applied to a sample of male and female executives. The results indicate
 that women are under-compensated. 
Journal: Applied Economics 
Pages: 1107-1113 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500474264 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474264 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1107-1113




Template-Type: ReDIF-Article 1.0
Author-Name: Felix Dominguez-Barrero 
Author-X-Name-First: Felix 
Author-X-Name-Last: Dominguez-Barrero 
Author-Name: Julio Lopez-Laborda 
Author-X-Name-First: Julio 
Author-X-Name-Last: Lopez-Laborda 
Title: Why do people invest in personal pension plans? 
Abstract:
  The aim of this article is to identify the variables affecting the
 decision to make contributions to personal pension plans and the amount of
 such contributions. For this purpose, we specify and estimate a Tobit
 model for a sample based on the 1995 Personal Income Taxpayers Panel
 prepared by the Institute of Fiscal Studies (Spanish Ministry of Economy
 and Finance) formed by 3041 taxpayers, of whom 358 made contributions to
 pension plans. Our results suggest that individuals decide to invest in
 pension plans on complex grounds combining the wish to benefit from tax
 savings and to ensure they will receive supplementary income upon
 retirement. 
Journal: Applied Economics 
Pages: 1115-1126 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461956 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461956 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1115-1126




Template-Type: ReDIF-Article 1.0
Author-Name: Tiffany Hui-Kuang Yu 
Author-X-Name-First: Tiffany Hui-Kuang 
Author-X-Name-Last: Yu 
Author-Name: Hong Yih Chu 
Author-X-Name-First: Hong Yih 
Author-X-Name-Last: Chu 
Title: Is health care really a luxury? A demand and supply approach 
Abstract:
  Many studies have found strong and positive relationship between per
 capita income and health care expenditure. These studies usually adopt the
 assumptions that (1) the relationships among the variables are constant;
 and/or (2) the supply-side market for health care could be treated by
 using standard demand functions models. To take into account of the supply
 side of health care, we use the demand and supply approach with the
 cointegration model to re-examine this issue. By using Taiwan health care
 expenditure data, our results show that the real income elasticity is
 smaller than unity and the health care expenditures are primarily for
 'curing' rather than 'caring'. 
Journal: Applied Economics 
Pages: 1127-1131 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461857 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461857 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1127-1131




Template-Type: ReDIF-Article 1.0
Author-Name: Erdal Ozmen 
Author-X-Name-First: Erdal 
Author-X-Name-Last: Ozmen 
Title: Financial development, exchange rate regimes and the Feldstein-Horioka puzzle: evidence from the MENA region 
Abstract:
  This article investigates whether the Feldstein and Horioka (1980)
 argument on domestic saving-investment relationship is supported by the
 data of the countries in the Middle East and North Africa region when
 financial development levels and exchange rate regimes are taken into
 account. To this end, we employ both the Auroregressive Distributed Lag
 bounds cointegration test and panel mean group procedures. The results
 support the view that a successful international financial integration
 requires compatible levels of financial intermediation. The evidence also
 suggests that saving-investment cointegration is not invariant to exchange
 rate regimes. 
Journal: Applied Economics 
Pages: 1133-1138 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447674 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447674 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1133-1138




Template-Type: ReDIF-Article 1.0
Author-Name: Kangsik Choi 
Author-X-Name-First: Kangsik 
Author-X-Name-Last: Choi 
Title: Ex ante contracting with inequity aversion 
Abstract:
  We introduce that the principal and the agent can contract at the ex ante
 stage, and allow for risk-averse agents with inequity aversion to analyse
 the properties of the optimal incentive scheme under adverse selection.
 Contrary to the solutions of standard adverse selection problems, our main
 finding is that the efficient agent who is a risk-averse in presence of
 concerns with inequity produces more than first-best level, whereas the
 inefficient agent produces less than second-best level than canonical pure
 adverse selection output. 
Journal: Applied Economics 
Pages: 1139-1145 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447914 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447914 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1139-1145




Template-Type: ReDIF-Article 1.0
Author-Name: Alessio Anzuini 
Author-X-Name-First: Alessio 
Author-X-Name-Last: Anzuini 
Author-Name: Aviram Levy 
Author-X-Name-First: Aviram 
Author-X-Name-Last: Levy 
Title: Monetary policy shocks in the new EU members: a VAR approach 
Abstract:
  The article provides empirical evidence on the effects of monetary policy
 shocks in the three largest new European Union (EU) economies: Czech
 Republic, Hungary and Poland. Vector autoregression (VAR) system estimates
 show that the co-movement of macroeconomic variables, conditional on a
 monetary policy shock, is similar across these countries and, despite
 their lower degree of financial development, not dissimilar to that found
 for more advanced European economies. While qualitatively similar to the
 responses observed in the old EU members, the responses of the new members
 are, on average, weaker. 
Journal: Applied Economics 
Pages: 1147-1161 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600592866 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592866 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1147-1161




Template-Type: ReDIF-Article 1.0
Author-Name: Kang-Shik Choi 
Author-X-Name-First: Kang-Shik 
Author-X-Name-Last: Choi 
Author-Name: Jinook Jeong 
Author-X-Name-First: Jinook 
Author-X-Name-Last: Jeong 
Title: Does unmeasured ability explain the wage premium associated with technological change?: Quantile regression analysis 
Abstract:
  By using the quantile regressions of earnings equation, we find that the
 educational wage premium is higher in industries with rapid technological
 change than in industries with slower technological change at every decile
 in the distribution of wage residuals. The wage premium associated with
 the technological change is mostly explained by the returns to workers'
 unobserved heterogeneities, which are correlated with education, rather
 than the rents of high-tech industries. 
Journal: Applied Economics 
Pages: 1163-1171 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500486565 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486565 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1163-1171




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Mendi 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Mendi 
Title: Contractual implications of international trade in tacit knowledge 
Abstract:
  This article searches for evidence on the additional difficulty the
 parties have in contracting for the transfer of know-how relative to the
 transfer of patented technology. A sample of contracts for the acquisition
 of technology Spanish firms in 1991 is analysed to find a positive
 relationship between contract duration and the likelihood of transferring
 know-how in unaffiliated transfers. It is also found that technical
 assistance is bundled together with the transfer of know-how, suggesting
 that the parties try to mitigate opportunistic behaviour on the licensor's
 side. 
Journal: Applied Economics 
Pages: 1173-1183 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600592817 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592817 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1173-1183




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Cheng Wu 
Author-X-Name-First: Ming-Cheng 
Author-X-Name-Last: Wu 
Title: Selecting suitable compensation plans of executive stock options 
Abstract:
  Theoretical and empirical works have emphasized that executive stock
 option plans play an important role in compensation management and
 corporate governance owing to the incentives to increase firm stock price
 and volatility levels. This study not only proposes models of executive
 stock options and constructs value-matched financial variables for
 comparing the incentive effects towards these options, but also develops
 an empirical study exploring the characteristics of executive stock
 options and suitable compensation management for companies. This
 investigation examines the daily value and compares incentive effects of
 six kinds of executive stock options with the empirical data of TSMC, the
 world's largest dedicated semiconductor foundry, which is listed on the
 TSE and NYSE. Empirical results indicate that purchased options would be
 the best choice for companies that are unsuitable to undertake risky
 investments, while the relative indexed options are appropriate for bear
 markets and good for companies whose executives are highly risk averse.
 Repriceable options are not recommended due to their high costs and weak
 incentive effects. 
Journal: Applied Economics 
Pages: 1185-1193 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600592841 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592841 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1185-1193




Template-Type: ReDIF-Article 1.0
Author-Name: Pi-Chung Han 
Author-X-Name-First: Pi-Chung 
Author-X-Name-Last: Han 
Title: The mobility of highly skilled human capital in Taiwan 
Abstract:
  Most economists agree that a country's economic growth depends on human
 capital, physical capital, technology, and several other minor inputs.
 Human capital is the basic wealth of every country. Highly skilled workers
 are the most important component of human capital. Human capital can have
 a positive spillover effect on society. When talented young people leave
 their native country to work elsewhere, this brain drain inhibits the
 country's economic growth. Several factors contribute to brain drain.
 These can be classified roughly into three categories: economic, academic
 and personal. Economic factors play the most important role. From the
 early 1960s to the late 1980s, Taiwan suffered a brain drain when many
 people who had earned advanced degrees in western countries chose to leave
 Taiwan to work elsewhere. In this study's statistical analysis, I show
 that Taiwan's economy is based in past on an effective labour force and
 explain why Taiwan's economy has grown over the past 30 years. With the
 improved economy in the 1990s, young people are increasingly choosing to
 return to or remain in Taiwan to work and live. As Taiwan's economy
 improves, its highly skilled labour market becomes more competitive. 
Journal: Applied Economics 
Pages: 1195-1205 
Issue: 9 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500439051 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439051 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1195-1205




Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Hartarska 
Author-X-Name-First: Valentina 
Author-X-Name-Last: Hartarska 
Author-Name: Denis Nadolnyak 
Author-X-Name-First: Denis 
Author-X-Name-Last: Nadolnyak 
Title: Do regulated microfinance institutions achieve better sustainability and outreach? Cross-country evidence 
Abstract:
  In spite of increasing pressure on microfinance institutions (MFIs)
 operating in developing countries to transform into regulated financial
 intermediaries, to date, no study has investigated whether regulated MFIs
 actually achieve better financial results and reach more poor clients than
 nonregulated MFIs. This article explores the impact of regulation on MFI
 performance using newly released data for 114 MFIs from 62 countries in an
 empirical model where performance is specified as a function of
 MFI-specific, regulatory, macroeconomic and institutional variables.
 Consistent with recent cross-country evidence on the impact of banking
 regulations on bank performance (Barth et al., 2004), this article finds
 that regulatory involvement does not directly affect performance either in
 terms of operational self-sustainability or outreach. The article also
 finds that less leveraged MFIs have better sustainability. The policy
 implication is that MFIs' transformation into regulated financial
 institutions is may not lead to improved financial results and outreach.
 However, the finding that MFIs collecting savings reach more borrowers
 suggests that there may be indirect benefits from regulation, if
 regulation is the only way for MFIs to access savings. 
Journal: Applied Economics 
Pages: 1207-1222 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461840 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461840 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1207-1222




Template-Type: ReDIF-Article 1.0
Author-Name: W. A. Naude 
Author-X-Name-First: W. A. 
Author-X-Name-Last: Naude 
Author-Name: W. F. Krugell 
Author-X-Name-First: W. F. 
Author-X-Name-Last: Krugell 
Title: Investigating geography and institutions as determinants of foreign direct investment in Africa using panel data 
Abstract:
  This article uses a cross-country econometric approach to identify the
 determinants for foreign direct investment (FDI) in Africa. The
 contribution is 3-fold. Firstly, we recognize that the estimation
 techniques used elsewhere, such as ordinary least squares, may be flawed.
 We therefore use a dynamic one-step generalized method of moments (GMM)
 estimator due to Arellano and Bond (1991). The GMM-estimates identified a
 number of robust determinants of FDI, namely government consumption,
 inflation rate, investment, governance (political stability,
 accountability, regulatory burden, rule of law) and initial literacy. It
 is concluded that geography does not seem to have a direct influence on
 FDI flows to Africa. Neither market-seeking nor re-exporting motives of
 FDI seem to dominate, with different policy instruments being significant
 in the different specifications. This does not discount the importance of
 good policies, but probably indicates the importance of good policies made
 by good institutions. Institutions, in the form of political stability
 showed up as a significant determinant of FDI. 
Journal: Applied Economics 
Pages: 1223-1233 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600567686 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600567686 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1223-1233




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Birchwood 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Birchwood 
Author-Name: Rudolph Matthias 
Author-X-Name-First: Rudolph 
Author-X-Name-Last: Matthias 
Title: Structural factors associated with primary fiscal balances in developing countries 
Abstract:
  The study explores the conditions under which a government in a
 developing country is likely to run a balanced or surplus budget. We
 contend that primary fiscal deficits are likely to persist where the
 economy is too saving constrained to raise private sector investment. To
 conduct the investigation, a logit model is applied to a sample of
 developing countries to see whether the saving constraints are associated
 with the fiscal stance of governments. Accordingly, income level, growth,
 external current account balance and foreign direct investment are used as
 indicators of the saving constraint. With the exception of economic
 growth, positive developments in these variables turned out to be
 significant to the likelihood of the government adopting a surplus budget. 
Journal: Applied Economics 
Pages: 1235-1243 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447716 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447716 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1235-1243




Template-Type: ReDIF-Article 1.0
Author-Name: Arianne de Blaeij 
Author-X-Name-First: Arianne 
Author-X-Name-Last: de Blaeij 
Author-Name: Paulo Nunes 
Author-X-Name-First: Paulo 
Author-X-Name-Last: Nunes 
Author-Name: Jeroen C. J. M. van den Bergh 
Author-X-Name-First: Jeroen C. J. M. 
Author-X-Name-Last: van den Bergh 
Title: 'No-choice' options within a nested logit model: one model is insufficient 
Abstract:
  We examine the impact of providing a 'no-choice' option in
 attribute-based valuation experiments. The aim of the experiment was to
 assess monetary values of cockle fishery management practices in the Dutch
 Wadden Sea for different stakeholder groups, namely Dutch citizens, local
 residents and tourists. The current policy debate about the management of
 the Wadden Sea stresses the fact that individual preferences with respect
 to cockle-fishery differ. The aim of this article is to analyse the
 individual preferences in a objective way. Special attention is given to
 the influence of including a 'no-choice option', which is analysed using a
 nested logit model. We test whether the full set of options can be
 considered as close substitutes. The estimation results show that the
 influence of including the no-choice option differs among the stakeholders
 considered. 
Journal: Applied Economics 
Pages: 1245-1252 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600852955 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600852955 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1245-1252




Template-Type: ReDIF-Article 1.0
Author-Name: Hsiang-Tai Lee 
Author-X-Name-First: Hsiang-Tai 
Author-X-Name-Last: Lee 
Author-Name: Jonathan Yoder 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Yoder 
Title: A bivariate Markov regime switching GARCH approach to estimate time varying minimum variance hedge ratios 
Abstract:
  This article develops a new bivariate Markov regime switching
 BEKK-Generalized Autoregressive Conditional Heteroscedasticity (GARCH)
 (RS-BEKK-GARCH) model. The model is a state-dependent bivariate BEKK-GARCH
 model and an extension of Gray's univariate generalized regime-switching
 (GRS) model to the bivariate case. To solve the path-dependency problem
 inherent in the bivariate regime switching BEKK-GARCH model, we propose a
 recombining method for the covariance term in the conditional
 variance-covariance matrix. The model is applied to estimate time-varying
 minimum variance hedge ratios for corn and nickel spot and futures prices.
 Out-of-sample point estimates of hedging portfolio variance show that
 compared to the state-independent BEKK-GARCH model, the RS-BEKK-GARCH
 model improves out-of-sample hedging effectiveness for both corn and
 nickel data. We perform White's (2000) data-snooping reality check to test
 for predictive superiority of RS-BEKK-GARCH over the benchmark model and
 find that the difference in variance reduction between BEKK-GARCH and
 RS-BEKK-GARCH is not statistically significant for either data set at
 conventional confidence levels. 
Journal: Applied Economics 
Pages: 1253-1265 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438970 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438970 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1253-1265




Template-Type: ReDIF-Article 1.0
Author-Name: Gregorio Gimenez 
Author-X-Name-First: Gregorio 
Author-X-Name-Last: Gimenez 
Author-Name: Jaime Sanau 
Author-X-Name-First: Jaime 
Author-X-Name-Last: Sanau 
Title: Interrelationship among institutional infrastructure, technological innovation and growth. An empirical evidence 
Abstract:
  This paper uses a multi-equation model to achieve an overall study of two
 key factors which explain growth, technology and institutions. The paper
 focuses on the process of the accumulation of these factors and the
 interrelationship arising among them. A theoretical model is given,
 together with empirical evidence for the joint impact of these factors on
 economic growth in a wide-ranging sample of countries between 1985 and
 1997. This paper also contributes certain novel aspects in the variables
 employed. Thus, an indicator of human capital and an index reflecting
 institutional infrastructure have been used. The human capital indicator
 considers health, formal education, informal education and accumulated
 experience. It embraces a wider range of factors than the variables
 conventionally used in empirical studies. As to the institutional
 infrastructure index, it has been constructed on the basis of six
 institutional sub-indices, comprising voice and accountability, political
 stability, government effectiveness, regulatory quality, rule of law and
 control of corruption. Thus, the index constructed captures a greater
 wealth of the items commonly covered by the concept of institutions. 
Journal: Applied Economics 
Pages: 1267-1282 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500438988 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438988 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1267-1282




Template-Type: ReDIF-Article 1.0
Author-Name: Yanrui Wu 
Author-X-Name-First: Yanrui 
Author-X-Name-Last: Wu 
Title: Export performance in China's regional economies 
Abstract:
  China enjoyed unprecedented economic growth in the 1980s and 1990s.
 Associated with this growth was the rapid expansion of exports from the
 Chinese regions. This study aims to provide an empirical assessment of
 export performance in the Chinese regions during 1992-2001. It has shown
 that, on an average, China's regional economies have only achieved 70% of
 their export potential, leaving substantial scope for improvement. There
 is also considerable variation in export performance among the Chinese
 regions, with the noncoastal areas lagging behind. In addition, this
 article also shows that several region-specific factors (e.g. foreign
 direct investment, government spending, infrastructure development and the
 nonstate sector) have affected regional export performance positively.
 Furthermore, it is found that the development of China's western regions
 has boosted and will continue to improve the export sectors in these
 regions. 
Journal: Applied Economics 
Pages: 1283-1293 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500474272 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474272 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1283-1293




Template-Type: ReDIF-Article 1.0
Author-Name: Willie Belton 
Author-X-Name-First: Willie 
Author-X-Name-Last: Belton 
Author-Name: Usha Nair-Reichert 
Author-X-Name-First: Usha 
Author-X-Name-Last: Nair-Reichert 
Title: Inflation regimes, core inflation measures and the relationship between producer and consumer price inflation 
Abstract:
  To date, an overwhelming majority of the literature has addressed mean
 relationships between producer and consumer price inflation. Granger et
 al. (1986) represent the only attempt to investigate second moment
 relationships. We examine the consumer--producer price relationship
 employing a multivariate GARCH-M framework that allows simultaneous
 estimation of the bivariate system along with providing explicit times
 series estimates of the variances of consumer and producer price
 inflation. This research also breaks new ground in the use of core and
 over-all inflation variance measures as well as examining state dependent
 mean and variance relationships. We find that mean relationships are
 generally sensitive to the measure of inflation used. Food and energy
 prices play an important role in transmitting changes in aggregate input
 prices to aggregate output prices. When food and energy prices are
 eliminated from consumer and producer price inflation measures, mean
 relationships break down irrespective of whether the economy is
 experiencing a high or low inflation regime. Variance relationships appear
 to be more robust in general and input price relationships in particular
 appear to respond to inflation regime shifts. 
Journal: Applied Economics 
Pages: 1295-1305 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447682 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447682 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1295-1305




Template-Type: ReDIF-Article 1.0
Author-Name: Inchul Kim 
Author-X-Name-First: Inchul 
Author-X-Name-Last: Kim 
Author-Name: Insik Min 
Author-X-Name-First: Insik 
Author-X-Name-Last: Min 
Title: An alternative semiparametric estimate of the base-independence equivalence scale: an application to US consumer expenditure survey data 
Abstract:
  This study proposes a semiparametric estimate and a test for
 base-independence equivalence scale. Our semiparametric approach is based
 on nondensity weighted loss function in contrast to Pendakur's (1999)
 density weighted loss function. Simulation results indicate that our
 specification tends to produce a smaller bias in estimating the
 equivalence scale and thus a more reliable test for base-independence
 hypothesis. We also provide an application using US Consumer Expenditure
 Survey data. 
Journal: Applied Economics 
Pages: 1307-1314 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606294 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606294 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1307-1314




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Isabel Gil 
Author-X-Name-First: Ana Isabel 
Author-X-Name-Last: Gil 
Author-Name: Jose Alberto Molina 
Author-X-Name-First: Jose Alberto 
Author-X-Name-Last: Molina 
Title: Human development and alcohol abuse in adolescence 
Abstract:
  The aim of this article is to analyse the development of human capital in
 adolescents, as represented by their state of health and educational
 attainment, when this capital is affected by the abusive consumption of
 alcohol measured by grams of ethanol. To that end, we adopt a theoretical
 framework derived from the Model of Rational Addiction, the Model of
 Health Demand and the Model of Schooling Demand, which is then estimated
 by using data drawn from the Spanish National Survey on Drug Use in the
 School Population (1996, 1998, 2000). Results confirm that higher alcohol
 consumption leads to worse health states and lower academic efficiency
 among adolescents, which suggests the need to implement effective policies
 aimed at reducing alcohol abuse among this population group. 
Journal: Applied Economics 
Pages: 1315-1323 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840701346238 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701346238 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1315-1323




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Giunta 
Author-X-Name-First: Anna 
Author-X-Name-Last: Giunta 
Author-Name: Francesco Trivieri 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Trivieri 
Title: Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms 
Abstract:
  Our empirical study aims at identifying the determinants of Information
 Technology (IT) adoption by small and medium sized Italian manufacturing
 firms. An ordered probit analysis is conducted on a sample of about 17 000
 firms surveyed by the Italian Statistical Institute, using as a dependent
 variable an index of IT adoption. Our results show that firm size,
 geographical location, functional composition of the workforce, R&D
 activity, subcontracting, exports and collaboration between firms are all
 highly significant determinants of IT adoption. Such results are
 consistent with most of the predictions advanced in the few studies
 existing on this topic. 
Journal: Applied Economics 
Pages: 1325-1334 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600567678 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600567678 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1325-1334




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Ming Jing Yang 
Author-X-Name-First: Ming Jing 
Author-X-Name-Last: Yang 
Author-Name: Hui-Chin Liao 
Author-X-Name-First: Hui-Chin 
Author-X-Name-Last: Liao 
Author-Name: Chia-Hao Lee 
Author-X-Name-First: Chia-Hao 
Author-X-Name-Last: Lee 
Title: Hysteresis in unemployment: empirical evidence from Taiwan's region data based on panel unit root tests 
Abstract:
  In this study, we test the hysteresis hypothesis in unemployment for
 Taiwan's 21 regional data sets using the Levin et al. (2002), Im et al.
 (2003) and Taylor and Sarno (1998) panel-based unit root tests for the
 June 1993 to September 2001 period. The results from all three tests
 provide evidence that based on Taiwan's regional unemployment data the
 hysteresis hypothesis can justifiably be rejected. 
Journal: Applied Economics 
Pages: 1335-1340 
Issue: 10 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500486516 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486516 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1335-1340




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Deininger 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Deininger 
Author-Name: Songqing Jin 
Author-X-Name-First: Songqing 
Author-X-Name-Last: Jin 
Author-Name: Xinhua Yu 
Author-X-Name-First: Xinhua 
Author-X-Name-Last: Yu 
Title: Risk coping and starvation in rural China 
Abstract:
  We use a 3-year panel from two poor provinces in Southern China to
 examine the nature of risks to which rural households are exposed and
 their ability to insure calorie consumption and spending of total
 consumption against idiosyncratic shocks to their income. We find that
 idiosyncratic risks are indeed the main source of income variation in the
 sample, consumption is better insured than total spending. Unlike total
 spending where full insurance is rejected in most cases, calorie intake is
 completely insured for both land-rich and land-poor households in both
 provinces. Access to even modest amounts of land significantly enhances
 households' ability to guard against total spending. Land-rich households
 are much better insured against total spending than land-poor households.
 The results are robust across model specifications although Generalized
 Method of Moments (GMM) estimations increase the magnitude of difference
 in total spending between the land-rich and the land-poor. Policies
 targeting poverty reduction and improving land use rights and land access
 to the poor could potentially improve the overall risk sharing ability of
 the rural poor. 
Journal: Applied Economics 
Pages: 1341-1352 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600592908 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592908 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1341-1352




Template-Type: ReDIF-Article 1.0
Author-Name: A. F. Galvao Jr 
Author-X-Name-First: A. F. 
Author-X-Name-Last: Galvao Jr 
Author-Name: F. A. Reis Gomes 
Author-X-Name-First: F. A. 
Author-X-Name-Last: Reis Gomes 
Title: Convergence or divergence in Latin America? A time series analysis 
Abstract:
  This article investigates the occurrence of per capita income convergence
 in 19 Latin American countries. We apply a time series approach to test
 for stochastic convergence and &#x3b2;-convergence based on structural
 breaks unit root tests, where the dates of breaks are unknown and
 determined endogenously. This approach is essential since it does not
 impose common break dates and parameter homogeneity among countries. In
 fact, the econometric methodology employed attempts to provide what was
 lacking in previous works. As a consequence, unlike prior studies the
 results indicate that there is substantial evidence in favor of
 conditional convergence in Latin America. We show that this evidence is
 even greater when analyzing South and Central America separately. 
Journal: Applied Economics 
Pages: 1353-1360 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606278 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606278 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1353-1360




Template-Type: ReDIF-Article 1.0
Author-Name: Alfons Palangkaraya 
Author-X-Name-First: Alfons 
Author-X-Name-Last: Palangkaraya 
Author-Name: Jongsay Yong 
Author-X-Name-First: Jongsay 
Author-X-Name-Last: Yong 
Title: How effective is &#x201c;lifetime health cover&#x201d; in raising private health insurance coverage in Australia? An assessment using regression discontinuity 
Abstract:
  The Australian government introduced three major private health insurance
 policy initiatives in recent years. These are, in chronological order, (i)
 the Private Health Insurance Incentives Scheme (PHIIS), which imposes a
 tax levy on high-income earners who do not have private health insurance
 and provides a means-tested subsidy schedule for low-income earners who
 purchase PHI; (ii) a 30% premium rebate for all private health insurance
 policies to replace the means-tested component under PHIIS; and (iii)
 lifetime health cover, which permits a limited form of age-related risk
 rating by insurance funds. Together, these policy changes have been
 effective in encouraging the uptake of PHI; the percentage of the
 population covered by PHI rose from 31% in 1999 to 45% at the end of 2001.
 The difficult issue, however, is in disentangling the effects of the three
 policy changes, given that they were introduced in quick succession. This
 article attempts to evaluate the effect of lifetime health cover using a
 regression discontinuity design, an approach that makes use of
 cross-section data that allows the effect of lifetime health cover to be
 isolated via local regression. The results suggest that the importance of
 lifetime health cover appears to be grossly over-rated in previous
 studies. Our estimates indicate that it accounts for roughly 22-32% of the
 combined effects of all the policy initiatives introduced in the late
 1990s. While these figures suggest that its effect is clearly significant,
 it is nonetheless nowhere near the effect often associated with lifetime
 health cover. 
Journal: Applied Economics 
Pages: 1361-1374 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500486532 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486532 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1361-1374




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Bentzen 
Author-X-Name-First: Jan 
Author-X-Name-Last: Bentzen 
Title: Does OPEC influence crude oil prices? Testing for co-movements and causality between regional crude oil prices 
Abstract:
  Using high-frequency data the co-movements among crude oil prices are
 analysed in order to address the question of regionalization of the world
 crude oil market. Time-series econometrics in the form of error-correction
 modelling is applied for daily crude oil price data covering the time
 period 1988 to 2004 and in this framework topics like weak and strong
 exogeneity among three major oil prices - represented by Brent, OPEC and
 Texas (WTI) - are addressed. The empirical results are that causality is
 most likely bi-directional among these crude oil prices - and hence
 rejecting a regionalization hypothesis of the global oil market - and also
 an influence from the OPEC oil price towards Bent and WTI, which are
 usually claimed to have a benchmark role. 
Journal: Applied Economics 
Pages: 1375-1385 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606344 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606344 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1375-1385




Template-Type: ReDIF-Article 1.0
Author-Name: Yujin Oh 
Author-X-Name-First: Yujin 
Author-X-Name-Last: Oh 
Author-Name: Sung-Joon Park 
Author-X-Name-First: Sung-Joon 
Author-X-Name-Last: Park 
Author-Name: Yu-Seop Kim 
Author-X-Name-First: Yu-Seop 
Author-X-Name-Last: Kim 
Title: A comparative analysis of inter-industry wage differentials: before and after the Korean financial crisis 
Abstract:
  Korean economy has changed rapidly since the 1997 Korean financial
 crisis. This article investigates whether the inter-industry wage
 differentials in the Korean manufacturing industry are consistent over
 time and how the inter-industry wage structure has changed after the
 financial crisis. We used the 1995 and 1999 survey report on the wage
 structure-Korea. Our empirical results provide evidences for a wider
 inter-industry wage differentials and changes of the wage structure. After
 the crisis, company size, region (live in capital), sex, tenure, education
 are more critical to determine wages. According to factor analysis, the
 job quality factor is most closely related to wages before the crisis,
 while the industry attributes factor does in 1999. 
Journal: Applied Economics 
Pages: 1387-1397 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606286 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606286 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1387-1397




Template-Type: ReDIF-Article 1.0
Author-Name: Ayd&#x131;n Ulucan 
Author-X-Name-First: Ayd&#x131;n 
Author-X-Name-Last: Ulucan 
Title: An analysis of mean-variance portfolio selection with varying holding periods 
Abstract:
  In this study, I investigate optimal holding period (investment horizon)
 for the classical mean-variance portfolio optimization problem. Optimal
 holding period ex-post is determined using Istanbul Stock Exchange ISE-100
 index stocks and Athens Stock Exchange FTSE-40 index stocks data. I extend
 the approach to other downside risk criteria including expected loss and
 semi-variance. The analysis involves solving the portfolio optimization
 problem for a total of 648 cases - two stock exchanges, three different
 target return levels, three different risk measures and 36 different time
 periods with rolling data. I discuss the results from the view point of
 two neighbouring markets: one with an upward trend and the other with a
 downward trend. The results show that portfolio returns with varying
 holding periods have a convex structure with an optimal holding period. 
Journal: Applied Economics 
Pages: 1399-1407 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606310 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606310 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1399-1407




Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Chuan Tsai 
Author-X-Name-First: Shih-Chuan 
Author-X-Name-Last: Tsai 
Title: Strategic debt service and investment decisions 
Abstract:
  Firms alter investing decisions when there is debt in the capital
 structure. Security design features can exacerbate the situation. This
 article studies how strategic debt service may affect investment
 distortions resulting from debt financing in a dynamic framework. When the
 production decision involves an expansion option, the shareholders' option
 to strategically default on the outstanding debt eliminates bankruptcy
 costs but, in contrast to previous literature where production decisions
 are fixed, leads to suboptimal investing decisions. This is due to higher
 wealth transfers from shareholders to debt holders upon exercise of the
 growth option. Strategic debt service, therefore, may reduce the value of
 the firm. The setting of an endogenous production set offers a potential
 explanation for empirical observations of wide credit spreads and low
 leverage. 
Journal: Applied Economics 
Pages: 1409-1424 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600592890 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592890 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1409-1424




Template-Type: ReDIF-Article 1.0
Author-Name: Khurram Jamali 
Author-X-Name-First: Khurram 
Author-X-Name-Last: Jamali 
Author-Name: Kirsten Wandschneider 
Author-X-Name-First: Kirsten 
Author-X-Name-Last: Wandschneider 
Author-Name: Phanindra Wunnava 
Author-X-Name-First: Phanindra 
Author-X-Name-Last: Wunnava 
Title: The effect of political regimes and technology on economic growth 
Abstract:
  Do political regimes have a significant effect on economic growth? This
 study builds on the new neoclassical growth model to identify economic
 determinants of growth, and explicitly tests for the influence of
 political variables on economic performance for the 1990s. The results
 suggest that democracies and bureaucracies significantly outperform
 autocracies. Economic growth is also promoted by increased protection of
 property rights, and higher investment in education. Moreover, technology
 has become a requirement for efficient production, and hence, is crucial
 in promoting growth. Countries can therefore increase the level of
 economic growth by increasing the levels of education and technology in
 the economy, and establishing codified laws to foster property rights. 
Journal: Applied Economics 
Pages: 1425-1432 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447906 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447906 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1425-1432




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen 
Author-X-Name-First: Chung-Hua 
Author-X-Name-Last: Shen 
Author-Name: Chien-Fu Chen 
Author-X-Name-First: Chien-Fu 
Author-X-Name-Last: Chen 
Author-Name: Li-Hsueh Chen 
Author-X-Name-First: Li-Hsueh 
Author-X-Name-Last: Chen 
Title: An empirical study of the asymmetric cointegration relationships among the Chinese stock markets 
Abstract:
  The Enders and Siklos asymmetric cointegration test is employed to
 examine the long-run asymmetric equilibrium relationships between the
 Chinese Shanghai and Shenzhen stock markets. Three samples are adopted,
 which are the whole sample (October 1992 to September 2002); the first
 subsample before B shares were opened up to the Chinese public (October
 1992 to February 2001); and the second subsample after B shares were
 opened up (February 2001 to September 2002). The estimated results are as
 follows. First, when the conventional Engle-Granger symmetric
 cointegration test is used, only the A shares in Shanghai and Shenghen
 stock exchange market are cointegrated when using the whole sample and the
 first subsample. However, with the Enders-Siklos M-TAR asymmetric
 cointegration test, Shenzhen A and B shares stock prices have an
 asymmetric cointegration relationship after B shares were open, suggesting
 that openness increases the market efficiency. Furthermore, the two A
 shares in Shanghai and Shenzhen stock exchanges also have an asymmetric
 cointegration relationship in the whole sample and the first subsample,
 implying that although the asymmetric relationship is crucial, it has long
 been neglected. Finally, it is found that the adjustment speed of Shanghai
 A shares is faster when deviation from the long-run equilibrium is
 positive than when it is negative. 
Journal: Applied Economics 
Pages: 1433-1445 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606302 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606302 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1433-1445




Template-Type: ReDIF-Article 1.0
Author-Name: Adriaan Kalwij 
Author-X-Name-First: Adriaan 
Author-X-Name-Last: Kalwij 
Author-Name: Wiemer Salverda 
Author-X-Name-First: Wiemer 
Author-X-Name-Last: Salverda 
Title: The effects of changes in household demographics and employment on consumer demand patterns 
Abstract:
  This study examines to what extent changes in consumer demand patterns
 over the last two decades in the Netherlands can be attributed to changes
 in household demographics, employment and total expenditures. The
 dominating changes in consumer demand are decreasing budget shares of food
 & beverages and clothing & footwear and increasing budget shares of
 housing and services. The changes in households' composition - away from
 the traditional one-earner family with children - together with the
 increase in household total expenditures account for about one-third of
 the decrease in the budget share of food & beverages, half of the increase
 in the budget shares of services and only a minor part of the increase in
 housing. Once controlled for budget effects, the quadrupling of the
 proportion of employed women with young children accounts for about
 one-third of the increase in the budget shares of personal & health care -
 including childcare - and food away, holidays & entertainment. 
Journal: Applied Economics 
Pages: 1447-1460 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500474256 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474256 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1447-1460




Template-Type: ReDIF-Article 1.0
Author-Name: Shyh-Wei Chen 
Author-X-Name-First: Shyh-Wei 
Author-X-Name-Last: Chen 
Author-Name: Chung-Hua Shen 
Author-X-Name-First: Chung-Hua 
Author-X-Name-Last: Shen 
Title: Evidence of the duration-dependence from the stock markets in the Pacific Rim economies 
Abstract:
  This article investigates the duration-dependent feature of five Pacific
 Rim economies. The duration-dependent Markov Switching model is employed
 to achieve this objective. The Savage-Dickey density ratio is also
 computed in support of the duration-dependent Markov switching model. The
 possible bull and bear market dates for each stock market are also
 identified by the posterior probability from the empirical model. It is
 unambiguous that Japan, South Korea and Hong Kong are all characterized by
 duration-dependence in a bear market but no duration-dependence in a bull
 market. In the case of Taiwan and Singapore, the duration-dependence
 feature holds for both the bear and bull markets. 
Journal: Applied Economics 
Pages: 1461-1474 
Issue: 11 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600592858 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592858 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1461-1474




Template-Type: ReDIF-Article 1.0
Author-Name: Sheila Amin Gutierrez de Pineres 
Author-X-Name-First: Sheila Amin 
Author-X-Name-Last: Gutierrez de Pineres 
Author-Name: Manuel Cantavella-Jorda 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Cantavella-Jorda 
Title: Export-led growth: are the results robust across methodologies and/or data sets? A case study of Latin America 
Abstract:
  We examine the export-led growth (ELG) hypothesis from a different
 perspective asking if the choice of data and/or methodology drives the
 results. We apply the Granger causality test modified by the corresponding
 error correction model using real export data from two common sources: the
 International Monetary Fund and the United Nations Commodity Trade
 Statistics. Additionally, to determine if the level of deflation could be
 a factor, we deflate the data at a disaggregated level and by a single
 export unit price index. Outcomes are compared to those obtained through
 the Granger causality procedure developed by Toda and Yamamoto (1995) and
 Dolado and Lutkepohl (1996). We use sixteen Latin American countries to
 test our hypotheses. The analysis reveals inconsistencies in the results
 both by selection of data and methodology suggesting much of the debate
 regarding ELG, at least for Latin America, is fuelled by data and/or
 methodology choice, putting into question previous studies. 
Journal: Applied Economics 
Pages: 1475-1500 
Issue: 12 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447781 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447781 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1475-1500




Template-Type: ReDIF-Article 1.0
Author-Name: Arusha Cooray 
Author-X-Name-First: Arusha 
Author-X-Name-Last: Cooray 
Author-Name: Dipendra Sinha 
Author-X-Name-First: Dipendra 
Author-X-Name-Last: Sinha 
Title: The Feldstein-Horioka model re-visited for African countries 
Abstract:
  We study the relationship between the saving and investment rates for 20
 African countries using a long period of data. A high correlation between
 saving and investment is often taken as evidence of capital immobility. We
 use the new Ng-Perron unit root tests to examine the stationarity of
 saving and investment rates. Both Johansen cointegration tests and
 fractional cointegration tests are used. The results are mixed. The
 Johansen cointegration tests show that the saving and investment rates are
 cointegrated only for Rwanda and South Africa. This implies that for the
 other 18 countries, there is evidence of capital mobility. The fractional
 cointegration test results are different. The two rates are found to be
 fractionally cointegrated for the following 12 countries: Algeria,
 Burundi, Egypt, Morocco, Niger, Rwanda, Senegal, South Africa, Swaziland,
 Tunisia, Tanzania and Zimbabwe. For Cote d'Ivoire, Kenya, Lesotho and
 Sierra Leone there is some evidence of capital mobility while the results
 for Ethiopia, Malawi, Mauritius and Nigeria are mixed. 
Journal: Applied Economics 
Pages: 1501-1510 
Issue: 12 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600675679 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1501-1510




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Ling Lin 
Author-X-Name-First: Chih-Ling 
Author-X-Name-Last: Lin 
Author-Name: Ming-Chieh Wang 
Author-X-Name-First: Ming-Chieh 
Author-X-Name-Last: Wang 
Author-Name: Yin-Feng Gau 
Author-X-Name-First: Yin-Feng 
Author-X-Name-Last: Gau 
Title: Expected risk and excess returns predictability in emerging bond markets 
Abstract:
  This study examines the predictability of expected excess returns from
 eight emerging bond markets within an international asset pricing
 framework. Two sets of instruments are used, which include both world and
 local factors, to forecast emerging bond returns. Besides investigating
 the influence of the macroeconomic factors in specific countries on bond
 returns in those countries, this study also divides local factors into
 macroeconomic and financial factors. Unlike previous studies, we apply
 macroeconomic instruments that contain more information on excess returns
 as a proxy for local risk factors via principal component analysis
 methodology. The information variable approach enables the prediction of
 excess bond returns based on world and local factors and facilitating
 understanding of the degree of integration between emerging bond markets
 and developed bond markets. The results indicate that the bond market in
 emerging world is partially integrated to that in the developed world and
 the predictability of local factors that include both financial and
 macroeconomic information variables can forecast around 25-66% of the
 returns of emerging bonds. Incorporating the macroeconomic variables
 increases the explanatory power of the model. Both world and
 country-specific local instruments can forecast excess bond returns, but
 local instruments appear to be better predictors of such returns,
 particularly the local credit spread to US. Additionally, this study finds
 that investor risk aversion is significant among most of sample countries. 
Journal: Applied Economics 
Pages: 1511-1529 
Issue: 12 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606336 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606336 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1511-1529




Template-Type: ReDIF-Article 1.0
Author-Name: Changhui Kang 
Author-X-Name-First: Changhui 
Author-X-Name-Last: Kang 
Title: Academic interactions among classroom peers: a cross-country comparison using TIMSS 
Abstract:
  Using an international data set from the Third International Mathematics
 and Science Study (TIMSS), we examine academic interactions among
 classroom peers for each country, and compare them across different
 countries. To minimize the bias that usually plagues peer effects studies,
 we take within-student differences between mathematics and science test
 scores. The results show a significantly positive association between
 peers' performance and own achievement for most of the TIMSS countries.
 Moreover, the degree of mutual peer interactions within classroom is found
 to be surprisingly close across different countries, even if there exists
 a wide range of institutional differences in middle-school education (e.g.
 degree of ability mixing). 
Journal: Applied Economics 
Pages: 1531-1544 
Issue: 12 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606328 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1531-1544




Template-Type: ReDIF-Article 1.0
Author-Name: Keshab Bhattarai 
Author-X-Name-First: Keshab 
Author-X-Name-Last: Bhattarai 
Title: Welfare impacts of equal-yield tax reforms in the UK economy 
Abstract:
  A multisectoral dynamic general equilibrium tax model with and without
 announcement effects for open and closed capital markets is used to
 evaluate efficiency gains and transitional effects from equal-yield tax
 reforms for seven different taxes in the UK economy. Impacts of an
 unanticipated tax reform on investment, capital accumulation, output and
 employment are compared to those of anticipated tax reforms. Households,
 producers, traders, investors and the government are found to be more
 capable of adjusting their economic behaviour when tax announcements are
 made in advance. In equal-yield tax experiments welfare gains up to 1.4%
 of base year GDP can occur by removing distortions in taxes. Welfare loss
 of up to 2.05% of it can happen if a less distortionary tax, such as the
 labour income tax is replaced by more distortionary taxes. These
 simulation results hold whether the capital markets are closed or open. 
Journal: Applied Economics 
Pages: 1545-1563 
Issue: 12 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600571100 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600571100 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1545-1563




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Herzfeld 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Herzfeld 
Author-Name: Christoph Weiss 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Weiss 
Title: Corruption clubs: empirical evidence from kernel density estimates 
Abstract:
  A common finding of many analytical models is the existence of multiple
 equilibria of corruption. Countries characterized by the same economic,
 social and cultural background do not necessarily experience the same
 levels of corruption. In this article, we use Kernel Density Estimation
 techniques to analyse the cross-country distribution of corruption.
 Particular emphasis will be given to the question whether the distribution
 of corruption shows more than one peak. We find that most of the estimated
 densities exhibit twin peaks. We also provide some evidence on the
 intra-distribution dynamics and the persistence of corruption. We find the
 group of countries classified within the two 'clubs' to be very stable.
 Corruption is a highly persistent phenomenon. Substantial changes in the
 economic, political and cultural environment of countries within the
 'corruption club' are required before a significant decline of corruption
 is to be expected. 
Journal: Applied Economics 
Pages: 1565-1572 
Issue: 12 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500461980 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461980 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1565-1572




Template-Type: ReDIF-Article 1.0
Author-Name: Hans-Jurgen Engelbrecht 
Author-X-Name-First: Hans-Jurgen 
Author-X-Name-Last: Engelbrecht 
Author-Name: Christopher Pearce 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Pearce 
Title: The GATT/WTO has promoted trade, but only in capital-intensive commodities! 
Abstract:
  This article uses gravity models to explore the impact of the General
 Agreement on Tariffs and Trade (GATT)/World Trade Organization (WHO) on
 bilateral trade in a sample of 46 countries over the period 1965 to 1997.
 Our data enable us to disaggregate trade by broad commodity aggregates.
 The results for total trade are similar to those reported by Rose (2004).
 However, the disaggregated estimates reveal that the GATT/WTO has had a
 positive and statistically significant impact on trade in
 capital-intensive commodities, but no statistically significant impact on
 trade in other commodities. The article demonstrates that simple
 modifications of Rose's approach lead to results that are much more
 'common sense' than his (JEL F10, F15). 
Journal: Applied Economics 
Pages: 1573-1581 
Issue: 12 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600592874 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592874 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1573-1581




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Jesus Delgado 
Author-X-Name-First: Maria Jesus 
Author-X-Name-Last: Delgado 
Author-Name: Inmaculada Alvarez 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Alvarez 
Title: Network infrastructure spillover in private productive sectors: evidence from Spanish high capacity roads 
Abstract:
  Interest in public infrastructure research has been a subject of
 increasing concern to economists and policy-makers. This article aims at
 analysing the locational impact of the high capacity roads (HCR) on the
 Spanish private economic activity from 1970 through 1998, given that this
 is one of main infrastructure-based development strategy undertaken in
 Spain in this period. In a stochastic frontier production-function
 framework, we allow for modelling of provincial heterogeneity through the
 existence of different efficiency levels in the territorial units. Results
 show HCR spillovers between geographically close provinces and between
 provinces displaying similar socio-demographic characteristics and
 government size. To the extent that the magnitude and sign of these
 impacts differ across sectors a reasonable explanation of the limited
 impact of HCR on aggregate private production could be made. The presence
 of a negative spillover effect in the industrial and business service
 sector suggests that Spanish provinces may have used HCR capital as a
 competitive tool for attracting factors of production leading to a
 rearrangement in these economic activities. 
Journal: Applied Economics 
Pages: 1583-1597 
Issue: 12 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500486557 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486557 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1583-1597




Template-Type: ReDIF-Article 1.0
Author-Name: Jeronimo Pastor 
Author-X-Name-First: Jeronimo 
Author-X-Name-Last: Pastor 
Author-Name: Alejandro Villagomez 
Author-X-Name-First: Alejandro 
Author-X-Name-Last: Villagomez 
Title: The structural budget balance: a preliminary estimation for Mexico 
Abstract:
  In this article we estimate the structural budget balance for Mexico from
 1980 to 2003 using a variation of the methodology proposed by the
 International Monetary Fund. In addition, we propose a fiscal rule that
 limits deficits in the structural balance as a percentage of GDP, such as
 the ones used by the European Union and the Chilean Government amongst
 others. We also simulate what the conventional balance would have been for
 Mexico if such a rule would have been implemented in 1980. 
Journal: Applied Economics 
Pages: 1599-1607 
Issue: 12 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447856 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447856 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1599-1607




Template-Type: ReDIF-Article 1.0
Author-Name: Maxime de Marin de Montmarin 
Author-X-Name-First: Maxime de Marin 
Author-X-Name-Last: de Montmarin 
Title: A new contribution to the 'Paris Metro Pricing' proposal 
Abstract:
  Using the concept of the 'Paris Metro Pricing', we will show that, when
 the distribution of the capacity between sub-networks leads to any loss of
 technical effectiveness and when a traditional condition on the 'hazard
 rate' is checked, it is always optimal for the monopolist to subdivide his
 main network in as many sub-networks as there are different types of net
 surfers. 
Journal: Applied Economics 
Pages: 1609-1612 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690173 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690173 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1609-1612




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Title: Estimating short and long-run relationships: a guide for the applied economist 
Abstract:
  Many applied economists face problems in selecting an appropriate
 technique to estimate short and long-run relationships with the time
 series methods. This article reviews three alternative approaches viz.,
 general to specific, vector autoregressions and the vector error
 correction models. As in other methodological controversies, definite
 answers are difficult. It is suggested that if these techniques are seen
 as tools to summarize data, as in Smith (2000), often there maybe only
 minor differences in their estimates. Therefore a computationally
 attractive technique is likely to be popular. 
Journal: Applied Economics 
Pages: 1613-1625 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690256 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690256 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1613-1625




Template-Type: ReDIF-Article 1.0
Author-Name: Leone Leonida 
Author-X-Name-First: Leone 
Author-X-Name-Last: Leonida 
Author-Name: Dario Maimone Ansaldo Patti 
Author-X-Name-First: Dario Maimone Ansaldo 
Author-X-Name-Last: Patti 
Author-Name: Pietro Navarra 
Author-X-Name-First: Pietro 
Author-X-Name-Last: Navarra 
Title: Towards an equilibrium level of market reform: how politics affects the dynamics of policy change 
Abstract:
  In this article we examine the dynamics of economic reforms that are
 implemented by incumbent policy-makers interested in maintaining their
 political power. We use a sample of 86 countries over a time period going
 from 1980 to 2001 and find that the achievement of an equilibrium level of
 market liberalization is highly costly. Our results are robust to
 endogenity and model specification. 
Journal: Applied Economics 
Pages: 1627-1634 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690231 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690231 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1627-1634




Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Hsien Liu 
Author-X-Name-First: Wen-Hsien 
Author-X-Name-Last: Liu 
Title: Forecasting the semiconductor industry cycles by bootstrap prediction intervals 
Abstract:
  In recent years, there has been a recognition that point forecasts of the
 semiconductor industry sales may often be of limited value. There is
 substantial interest for a policy maker or an individual investor in
 knowing the degree of uncertainty that attaches to the point forecast
 before deciding whether to increase production of semiconductors or
 purchase a particular share from the semiconductor stock market. In this
 article, I first obtain the bootstrap prediction intervals of the global
 semiconductor industry cycles by a vector autoregressive (VAR) model using
 monthly US data consisting of four macroeconomic and seven industry-level
 variables with 92 observations. The 24-step-ahead out-of-sample forecasts
 from various VAR setups are used for comparison. The empirical result
 shows that the proposed 11-variable VAR model with the appropriate lag
 length captures the cyclical behaviour of the industry and outperforms
 other VAR models in terms of both point forecast and prediction interval. 
Journal: Applied Economics 
Pages: 1731-1742 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600706995 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600706995 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1731-1742




Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Lin Wu 
Author-X-Name-First: Jyh-Lin 
Author-X-Name-Last: Wu 
Author-Name: Yu-Hau Hu 
Author-X-Name-First: Yu-Hau 
Author-X-Name-Last: Hu 
Title: Currency substitution and nonlinear error correction in Taiwan's demand for broad money 
Abstract:
  We modify the conventional money demand function by including a real
 exchange rate variable to reflect the effect of currency substitution.
 Empirical evidence indicates that the variable is crucial to the long-run
 stability of Taiwan's money demand. After finding the failure of a linear
 error-correction model (ECM) in describing the dynamics of Taiwan's money
 demand, we apply a nonlinear ECM to examine its dynamics and support the
 appropriateness of the nonlinear model empirically. 
Journal: Applied Economics 
Pages: 1635-1645 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/09603100600675631 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100600675631 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1635-1645




Template-Type: ReDIF-Article 1.0
Author-Name: Shu Chen Chang 
Author-X-Name-First: Shu Chen 
Author-X-Name-Last: Chang 
Title: The interactions among foreign direct investment, economic growth, degree of openness and unemployment in Taiwan 
Abstract:
  The vector autoregression method of variance decomposition and impulse
 response function analysis are applied to analyse various relationships
 among foreign direct investment (FDI), economic growth, unemployment and
 degree of openness in Taiwan. The analysis results show that these five
 variables have a long-run equilibrium relationship; however, unemployment
 rate and FDI outflow have weak exogeneity. We also found that there exist
 three unidirectional causalities from FDI outflow to FDI inflow, from
 economic growth to degree of openness, and from economic growth to
 unemployment in short-run. Furthermore, the shocks of economic growth and
 degree of openness have positive effects on FDI inflow. On the contrary,
 the shocks in economic growth and FDI inflow have negative effects on
 unemployment rate. 
Journal: Applied Economics 
Pages: 1647-1661 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600675612 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675612 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1647-1661




Template-Type: ReDIF-Article 1.0
Author-Name: R. Wesley Nimon 
Author-X-Name-First: R. Wesley 
Author-X-Name-Last: Nimon 
Author-Name: Ricky Hall 
Author-X-Name-First: Ricky 
Author-X-Name-Last: Hall 
Title: Empirical analysis of the efficiency of job assignment auctions 
Abstract:
  For some hard-to-fill jobs the Navy awards Assignment Incentive Pay using
 an auction-like format. With respect to the optimal job assignment auction
 format, however, there is only a very limited academic literature.
 Furthermore, the extant literature assumes all bidders are equally
 qualified. In the Navy assignment context, this is not a tenable
 assumption, as other considerations, such as relocation and en-route
 training costs, must be considered when making an assignment. The lower
 the weight on the bid, the greater the weight that can be attached to the
 qualification component in the objective function. The lower the weight,
 however, the weaker the incentive to bid near one's reservation wage. The
 consideration of such other criteria precludes the implementation of the
 incentive-compatible, Vickery-Leonard assignment auction. We relax the
 assumption that bid amounts alone determine the assignment set and
 experimentally estimate the efficiency reductions associated with
 decreased bid-weights. The estimated elasticity of the value of the bids
 to changes in the bid-weight in low contention, first price auctions vary
 by bid-weight. Nonetheless, an increase from a 10 to a 50% weight on the
 bids decreases the level of the submitted bids by approximately 28%. 
Journal: Applied Economics 
Pages: 1679-1690 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600675646 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1679-1690




Template-Type: ReDIF-Article 1.0
Author-Name: Lex Borghans 
Author-X-Name-First: Lex 
Author-X-Name-Last: Borghans 
Author-Name: Bart Golsteyn 
Author-X-Name-First: Bart 
Author-X-Name-Last: Golsteyn 
Title: Skill transferability, regret and mobility 
Abstract:
  After graduation many students start working in sectors not related to
 their field of study or participate in training targeted at work in other
 sectors. In this article, we look at mobility immediately after graduation
 from the perspective that educational choices have been made when these
 pupils had little experience of the actual working life in these
 professions. We develop a model where students accumulate partially
 transferable human capital but also learn about their professional
 preferences at the university and during the first years in the labour
 market. As a consequence of this newly acquired insight, these young
 workers might realize that working in another occupational field would
 better fit their preferences, although they are better equipped to work in
 their own field. The empirical analysis reveals that if wages are 1% lower
 due to lower skill transferability, the probability that a graduate who
 regrets his choice actually switches decreases by 1.4 percentage points,
 while those who switch on average take 0.3 months additional education. 
Journal: Applied Economics 
Pages: 1663-1677 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600675661 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675661 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1663-1677




Template-Type: ReDIF-Article 1.0
Author-Name: Nakil Sung 
Author-X-Name-First: Nakil 
Author-X-Name-Last: Sung 
Title: Information technology, efficiency and productivity: evidence from Korean local governments 
Abstract:
  This study evaluates the performance of Korean local government by
 measuring their technical efficiency (TE) and total factor productivity
 (TFP) growth and, more importantly, examining the impact of information
 technology (IT) on this performance. The study is different from received
 analysis in that a unique measure of the state of IT-the Informatization
 Index-is used to investigate the impact of IT on both TE and TFP growth.
 Empirical analyses are conducted on data from 222 Korean local governments
 for the period 1999 to 2001. In particular, data envelopment analysis
 techniques are applied to calculate TE scores and TFP growth rates for
 sampled local governments. The empirical findings confirm the positive
 impact IT has in improving technical efficiency and accelerating
 productivity growth. The estimated coefficients are correctly signed (with
 other regional characteristics controlled for) when TE scores and TFP
 growth rates are regressed on the Index. In addition, the findings
 indicate that economies of density are present in the production of local
 public services. 
Journal: Applied Economics 
Pages: 1691-1703 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600675620 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675620 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1691-1703




Template-Type: ReDIF-Article 1.0
Author-Name: Nobuyuki Harada 
Author-X-Name-First: Nobuyuki 
Author-X-Name-Last: Harada 
Title: Video game demand in Japan: a household data analysis 
Abstract:
  Various economic studies of the video game industry have focused on
 intra-industry details. This article complements the approach by
 highlighting broader budget allocation by households. Using the 'total
 households' data of the Family Income and Expenditure Survey, this article
 estimates the demand model for video games. Estimation results show the
 effects of household income and demographic factors and prices of goods on
 the expenditure share of video games. These results indicate the
 importance of explicitly considering a households' budget allocation, or
 at least, including information on households. 
Journal: Applied Economics 
Pages: 1705-1710 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600660713 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600660713 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1705-1710




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Miles 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Miles 
Author-Name: Maximo Rossi 
Author-X-Name-First: Maximo 
Author-X-Name-Last: Rossi 
Title: Learning about one's relative position and subjective well-being 
Abstract:
  In this article we show evidence which suggests that changes in an
 individual's relative position affects his subjective well-being (SWB). In
 this sense, our findings are in line with those who argue that a felicity
 function should take into account both absolute and relative position. Our
 results are based on a simple experimental design to discuss whether
 learning about one's relative position affects SWB. Additionally, using
 nonexperimental data we find a significant association between SWB and
 relative wage. 
Journal: Applied Economics 
Pages: 1711-1718 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600660721 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600660721 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1711-1718




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Malgarini 
Author-X-Name-First: Marco 
Author-X-Name-Last: Malgarini 
Author-Name: Patrizia Margani 
Author-X-Name-First: Patrizia 
Author-X-Name-Last: Margani 
Title: Psychology, consumer sentiment and household expenditures 
Abstract:
  The aim of this article is to assess the role of the Italian Consumer
 Sentiment Index (CSI) as an autonomous driving force of consumption
 decisions. We test for the presence of 'rule of thumb' consumers as
 originally proposed by Campbell and Mankiw (1991), using sentiment
 measures distinguished by respondent's working condition and consumption
 data disaggregated according to durability, over the period 1982-2004. The
 consumption-sentiment relationship is found to be stronger for some groups
 of households and for some particular categories of expenditures.
 Moreover, sentiment seems to be not well explained by economic
 fundamentals alone, capturing also the effects of the political cycle and
 exceptional circumstances. 
Journal: Applied Economics 
Pages: 1719-1729 
Issue: 13 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606351 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606351 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1719-1729




Template-Type: ReDIF-Article 1.0
Author-Name: Saralees Nadarajah 
Author-X-Name-First: Saralees 
Author-X-Name-Last: Nadarajah 
Author-Name: Samuel Kotz 
Author-X-Name-First: Samuel 
Author-X-Name-Last: Kotz 
Title: Two generalized beta distributions 
Abstract:
  Two new distributions which contain several of the known generalizations
 of the beta distribution as particular cases are introduced. Various
 structural properties of each distribution are derived, including its cdf,
 moment generating function, characteristic function, moments, mean
 deviation about the mean, mean deviation about the median, entropy,
 asymptotic distribution of extreme order statistics, maximum-likelihood
 estimates and the Fisher information matrix. 
Journal: Applied Economics 
Pages: 1743-1751 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428062 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428062 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1743-1751




Template-Type: ReDIF-Article 1.0
Author-Name: Susana Santos 
Author-X-Name-First: Susana 
Author-X-Name-Last: Santos 
Title: Modelling economic circuit flows in a social accounting matrix framework. An application to Portugal 
Abstract:
  Aggregated Social Accounting Matrices (SAMs) will be built for the
 Portuguese economy in 1997, 1998 and 1999, based on the country's national
 accounts statistics. The SAMs will be shown as a working instrument for
 quantifying the flows in the economic circuit and for simulating the
 effects resulting from changes in such flows. The economic flows
 associated with the government subsectors will be emphasized, whilst
 accounting and fixed-price multipliers will be calculated to facilitate
 the study of the effects resulting from changes in the government's
 expenditure, which will also be subjected to a test on their veracity. 
Journal: Applied Economics 
Pages: 1753-1771 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447864 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447864 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1753-1771




Template-Type: ReDIF-Article 1.0
Author-Name: Haoming Liu 
Author-X-Name-First: Haoming 
Author-X-Name-Last: Liu 
Author-Name: Jinli Zeng 
Author-X-Name-First: Jinli 
Author-X-Name-Last: Zeng 
Title: Airline passenger fatality and the demand for air travel 
Abstract:
  After the 11 September tragedy, 20% of the scheduled US airline flights
 were cancelled and the passenger load factor was down to 56% from 66.6% a
 year ago. Was the high death toll or the nature of the attack itself
 responsible for this dramatic decline? Using the US data, we find that the
 demand for air travel did fall in years of relatively high fatality rate,
 but the demand is not sensitive to whether the high fatality rate is due
 to any terrorist activities. Our estimation results suggest that even
 after controlling for the sharp increase in the fatality rate because of
 the 11 September tragedy, a considerable proportion of the decline in
 demand for air travel that year is still unexplained. This evidence could
 suggest that there has been a fundamental shift in consumers' perception
 of air travel safety in the aftermath of the tragedy. 
Journal: Applied Economics 
Pages: 1773-1781 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840701371822 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701371822 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1773-1781




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Macas Nunes 
Author-X-Name-First: Paulo 
Author-X-Name-Last: Macas Nunes 
Author-Name: Tiago Neves Sequeira 
Author-X-Name-First: Tiago 
Author-X-Name-Last: Neves Sequeira 
Author-Name: Zelia Serrasqueiro 
Author-X-Name-First: Zelia 
Author-X-Name-Last: Serrasqueiro 
Title: Firms' leverage and labour productivity: a quantile approach in Portuguese firms 
Abstract:
  We show that the leverage of Portuguese firms tends to negatively affect
 its labour productivity for firms with relatively lower labour
 productivity but to positively affect this variable for firms in the
 right-hand side of the productivity distribution. This is particularly
 important in a country where labour productivity is persistently lower
 compared with the richer countries in Europe. Thus, we have concluded
 that, controlling for the usual effects, increasing leverage cannot be a
 solution for the less productive (and consequently the majority) of
 Portuguese firms. 
Journal: Applied Economics 
Pages: 1783-1788 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707076 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1783-1788




Template-Type: ReDIF-Article 1.0
Author-Name: C. Emre Alper 
Author-X-Name-First: C. 
Author-X-Name-Last: Emre Alper 
Author-Name: Ayse Mumcu 
Author-X-Name-First: Ayse 
Author-X-Name-Last: Mumcu 
Title: Interaction between price, quality and country of origin when estimating automobile demand: the case of Turkey 
Abstract:
  We estimate the demand for new automobiles in Turkey immediately
 following its entry to Custom Union with the European Union in 1996. We
 use quarterly data on price, quantity, quality, country of origin and
 product characteristics of the new automobile sales market and
 macroeconomic variables to estimate market demand during 1996-1999 using
 dynamic Generalized Least Squares Estimation method. In addition to
 including quality, we also include country of origin, to serve as another
 proxy for quality and to capture differences in cost-increasing and
 demand-reducing trade restrictions imposed on cars from certain countries
 as well as taste differences. Our results indicate that country of origin
 as well as quality matter for automobile demand in Turkey. Consistent with
 other aggregate automobile demand models for other countries, the demand
 for new automobiles is found to be price inelastic in the short run. 
Journal: Applied Economics 
Pages: 1789-1796 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707050 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707050 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1789-1796




Template-Type: ReDIF-Article 1.0
Author-Name: Paola Rota 
Author-X-Name-First: Paola 
Author-X-Name-Last: Rota 
Title: Unidimensionality, asymmetry and (S,s) rules in labour demand 
Abstract:
  We analyse the conditions under which an (S,s) rule may be implemented in
 the case of labour demand. The (S,s) rule implies a specific ordering of
 choices: downward adjustment, nonadjustment and upward adjustment with the
 decision of inaction lying crucially in the middle. This requires an exact
 negative relation between the choice-specific error terms. The particular
 ordering of choices implied may be estimated by an ordered probit. We test
 the (S,s) rule nesting the ordered probit within a multinomial model with
 correlated error terms. The restriction to a univariate error distribution
 is rejected by the data. 
Journal: Applied Economics 
Pages: 1797-1815 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690207 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690207 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1797-1815




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Hai Yang 
Author-X-Name-First: Chih-Hai 
Author-X-Name-Last: Yang 
Title: What factors inspire the high entry flow in Taiwan's manufacturing industries-A count entry model approach 
Abstract:
  Why is the entry flow of the manufacturing sector extremely high in
 Taiwan, and does it contribute to the prevailing entrepreneurship? This
 article aims to explore what factors inspire potential entrants to go into
 an industry. Based on a theoretical formulation of the Poisson probability
 entry model, a count data model is employed to investigate the
 determinants of entry flows. The empirical results reveal that traditional
 entry barriers indeed lower the entry flow. The entry incentives,
 including price cost margin and industry growth, play a lesser role at
 attracting new firms, while alternatively the market size acts as a better
 proxy of an entry incentive in explaining entry flows. Incumbents'
 responses to entry, R&D and advertising intensity are found to be
 associated with a significant negative impact on entry flows. This article
 also finds that there is a higher bound of covariate of entry, about 10%,
 that can be attributed to the immeasurable personality of
 entrepreneurs-entrepreneurship. Rather be the chicken's beak than be the
 cow's behind.1 The trade that might cause life hazard will be dealt, while
 the trade that might cause a loss will not be dealt. Two traditional
 Chinese proverbs 
Journal: Applied Economics 
Pages: 1817-1831 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690181 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690181 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1817-1831




Template-Type: ReDIF-Article 1.0
Author-Name: Taewoo You 
Author-X-Name-First: Taewoo 
Author-X-Name-Last: You 
Author-Name: Hongmin Zi 
Author-X-Name-First: Hongmin 
Author-X-Name-Last: Zi 
Title: The economic crisis and efficiency change: evidence from the Korean construction industry 
Abstract:
  This article gauges and analyses different types of efficiency in the
 Korean construction industry for the period 1996 to 2000, which includes
 the country's economic crisis. We also identify several important factors
 of the efficiency change and provide some managerial implications for the
 reason why most Korean construction firms had failed to maintain or
 enhance efficiency during this period. The results show that efficiency
 measures decreased significantly during the sample period and that there
 are large differences over the period before and after the economic
 crisis. Unlike many other industries, the low level of cost efficiency of
 the construction industry is mainly due to allocative inefficiency
 (inappropriate mix of input factors) rather than technical inefficiency.
 The low level of allocative efficiency, together with the strong
 relationship between institutional investors and efficiency, implies that
 the agency problem between managers and owners had prevailed in the Korean
 construction industry, and that construction firms could increase
 efficiency by minimizing agency costs. The study also implies that firms
 having failed in decreasing the leverage ratio, disposing unproductive
 assets and increasing the receivables overdue turnover could not avoid the
 efficiency decrease. 
Journal: Applied Economics 
Pages: 1833-1842 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690199 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690199 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1833-1842




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Anyadike-Danes 
Author-X-Name-First: Michael 
Author-X-Name-Last: Anyadike-Danes 
Title: How well are women doing? Female non-employment across UK regions 
Abstract:
  Discussions of the UK's recent labour market performance commonly mention
 the contrasting trends in the unemployment rate (down), the employment
 rate (up) and the inactivity rate (flat). These same commentaries also
 notice that the 'flatness' of the overall inactivity rate masks
 contrasting trends by sex, with male rates (slowly rising) and female
 rates (slowly falling) and then proceed to discuss male inactivity in some
 detail before concluding. Bypassing the composition of female inactivity,
 these commentaries fail to notice that the male and the female proportions
 of the population not working by reason of sickness or disability are
 quite similar. Equally they have rarely noticed that male and female
 non-employment rates display a very similar regional hierarchy with female
 rates in the 'North' as much as 50% higher than those in the 'South', and
 that there is an even steeper North-South gradient in some of the
 components of non-employment. For example, sickness and disability rates
 for females in the North are up to 10% of the working age population,
 while in the South rates are typically less than half that size. 
Journal: Applied Economics 
Pages: 1843-1854 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427957 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427957 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1843-1854




Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Hsiu Laih 
Author-X-Name-First: Chen-Hsiu 
Author-X-Name-Last: Laih 
Author-Name: Bin Lin 
Author-X-Name-First: Bin 
Author-X-Name-Last: Lin 
Author-Name: Kuan-Yu Chen 
Author-X-Name-First: Kuan-Yu 
Author-X-Name-Last: Chen 
Title: Effects of the optimal port queuing pricing on arrival decisions for container ships 
Abstract:
  When arriving at a busy port, a container ship usually need to queue in
 anchorage waiting for a berth. If the port establishes a toll scheme, the
 ship may rationally adjust sailing speed and time to save the cost,
 otherwise she has to pay for berthing on time. Consequently container
 ships' arrival times at the port will be dispersed, and the queuing
 situation can be decreased. In this article, an optimal step toll scheme
 by cost equilibrium approach is designed, and all values of equilibrium
 queuing cost and operating cost under the scheme are obtained. According
 to equilibrium results in this study, we show container ships that pay the
 toll to berth a queuing port are those altered their original arrival
 times at the port before the toll established. In addition, those ships'
 arrival time adjusting decisions from the nontoll to the optimal step toll
 cases can be well investigated before tolling a queuing port. 
Journal: Applied Economics 
Pages: 1855-1865 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500447765 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447765 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1855-1865




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Yuan Leon Li 
Author-X-Name-First: Ming-Yuan 
Author-X-Name-Last: Leon Li 
Title: Volatility states and international diversification of international stock markets 
Abstract:
  This study uses a Markov-switching technique to identify the volatility
 state of international stock markets. Further, we consider four possible
 state combinations of the individual and world stock markets to examine an
 interesting issue regarding the relationship between international
 diversification and market volatility. Last, we adopt a framework based on
 the state-varying correlation to establish a more efficient international
 investment strategy. Our empirical results are consistent with the two
 following notions. First, the situation of both the individual and world
 stock markets during high volatility states will be associated with the
 minimum benefit of risk-reduction from international diversification and a
 maximum cross-market correlation. Second, by incorporating the character
 of state-varying correlation into the establishment of an international
 portfolio, we can create a more efficient investment strategy with less
 risk, or greater return for a given risk. 
Journal: Applied Economics 
Pages: 1867-1876 
Issue: 14 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500428088 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428088 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1867-1876




Template-Type: ReDIF-Article 1.0
Author-Name: Derek Hum 
Author-X-Name-First: Derek 
Author-X-Name-Last: Hum 
Author-Name: Wayne Simpson 
Author-X-Name-First: Wayne 
Author-X-Name-Last: Simpson 
Title: The legacy of immigration: labour market performance and education in the second generation 
Abstract:
  Previous research finds that the children of immigrants, or the second
 generation, earn at least as much as other native born but that there are
 persistent ethnic differences in the intergenerational transmission of
 education and wages. We explain why these results are not incompatible and
 extend the empirical evidence in several directions using the Canadian
 Survey of Labour and Income Dynamics. First, we estimate a model of wages,
 earnings and hours worked using modern econometric techniques to
 corroborate earlier US results of complete integration by the second
 generation in the labour market. We find that ethnic differences in labour
 market performance are significant, but that these difference do not alter
 conclusions about the relative performance of the second generation.
 Second, we find a source of superior labour market performance for the
 second generation in higher educational attainment, which constitutes an
 important legacy of immigration that should not be ignored. Third, we find
 that the definition of the second generation matters. Men and women with
 two immigrant parents achieve about one additional year of education,
 while those with one immigrant parent achieve about one-half that
 educational advantage. We conclude that the education effect of an
 immigrant mother or father are comparable. 
Journal: Applied Economics 
Pages: 1985-2009 
Issue: 15 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690223 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690223 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1985-2009




Template-Type: ReDIF-Article 1.0
Author-Name: Duane Graddy 
Author-X-Name-First: Duane 
Author-X-Name-Last: Graddy 
Author-Name: Thomas Strickland 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Strickland 
Title: Public information as a deterrent to environmental infractions 
Abstract:
  Past studies of the impact of publicly announced violations of
 environmental laws on the market value of the offending firms have yielded
 equivocal results. A particularly troubling aspect of this research is
 whether the market imposes a reputation penalty for such violations. This
 article uses the event-study methodology to estimate the effect of
 announced environmental infractions on the market returns of the
 violators. Stockholders experienced significant negative abnormal returns
 in the event window. Cross-sectional analysis showed these cumulative
 losses to be a function of firm size, type of legal action and specific
 toxin. The reputation component of abnormal returns was influenced by
 these factors as well. 
Journal: Applied Economics 
Pages: 1961-1972 
Issue: 15 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707084 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707084 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1961-1972




Template-Type: ReDIF-Article 1.0
Author-Name: R. Borghesi 
Author-X-Name-First: R. 
Author-X-Name-Last: Borghesi 
Title: The late-season bias: explaining the NFL's home-underdog effect 
Abstract:
  This article examines price efficiency and out-of-sample predictability
 in the NFL point-spread betting market. Our main contribution to the
 existing literature is the identification of a persistent increase in bias
 magnitude during the final few weeks of each season. We demonstrate that
 this anomaly causes the much-documented home-underdog effect. We also
 offer evidence that the limits of arbitrage have enabled this phenomenon
 to persist for decades. Finally, we use several regression models to
 confirm our univariate analysis and show that these models can be used to
 implement profitable betting strategies. The predictive models presented
 differ from those in the prior literature by taking into account both
 short-term and aggregate biases. 
Journal: Applied Economics 
Pages: 1889-1903 
Issue: 15 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690314 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690314 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1889-1903




Template-Type: ReDIF-Article 1.0
Author-Name: Gordon Tang 
Author-X-Name-First: Gordon 
Author-X-Name-Last: Tang 
Author-Name: Wai Cheong Shum 
Author-X-Name-First: Wai Cheong 
Author-X-Name-Last: Shum 
Title: The risk-return relations: evidence from the Korean and Taiwan stock markets 
Abstract:
  This article examines the risk-return relations conditional on up and
 down market periods in the Korean and Taiwan stock markets. Based on
 statistical tests adjusted for the effects of heteroskedasticity and
 autocorrelation of the residuals, beta is found positively (negatively)
 related to realized returns in up (down) markets. However, the results are
 sensitive to portfolio aggregation methods. Its role as a risk measure
 vanishes in down markets for the two-way (beta-size and size-beta) sorted
 portfolios. Unsystematic risk is significantly and positively priced only
 in up markets and mainly for beta-sorted portfolios while total risk is
 correctly priced except in Taiwan during down markets. Moreover, the
 impact of skewness and kurtosis on realized returns is not only sensitive
 to portfolio aggregation methods but also different across stock markets.
 They are found to be more relevant risk characteristics in the Korean than
 in the Taiwan stock market. 
Journal: Applied Economics 
Pages: 1905-1919 
Issue: 15 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690280 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690280 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1905-1919




Template-Type: ReDIF-Article 1.0
Author-Name: Darrin Downes 
Author-X-Name-First: Darrin 
Author-X-Name-Last: Downes 
Author-Name: Winston Moore 
Author-X-Name-First: Winston 
Author-X-Name-Last: Moore 
Title: Does the exchange rate regime influence the relationship between the output gap and the current account? 
Abstract:
  Estimates of the output gap are useful for identifying the sustainable
 level of noninflationary output growth in countries with a flexible
 exchange rate regime. For nations with a fixed exchange rate, however,
 domestic prices are inexorably linked to the prices of its main trading
 partners and are unlikely to bear little relation to the output gap. This
 article uses data on 45 developed and developing countries between 1970
 and 2004 to show that a positive output gap in a country with a fixed
 exchange rate is more liable to be reflected in an imbalance on the
 external current account. 
Journal: Applied Economics 
Pages: 1955-1960 
Issue: 15 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707035 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1955-1960




Template-Type: ReDIF-Article 1.0
Author-Name: M. Solaiman Miah 
Author-X-Name-First: M. Solaiman 
Author-X-Name-Last: Miah 
Author-Name: Virginia Wilcox-Gok 
Author-X-Name-First: Virginia 
Author-X-Name-Last: Wilcox-Gok 
Title: Do the sick retire early? Chronic illness, asset accumulation and early retirement 
Abstract:
  Our objective is to determine how chronic illness affects asset
 accumulation and retirement. Previous studies have found that poor health
 leads to early retirement, but those studies failed to look at the
 indirect impact of chronic illness on retirement. Using data from the
 Health and Retirement Study, we define an illness as chronic if the
 individual reports having asthma, cancer, heart disease, stroke or
 diabetes for four or more years. We first estimate how a chronic illness
 influences asset accumulation. We then estimate how asset accumulation and
 current poor health influence retirement. We observe that the vast
 majority of the chronically ill population do not report their general
 health to be poor nor do they report functional limitations in activities
 of daily living. Nevertheless, our results indicate that chronic illness
 leads these people to accumulate fewer assets during their working years
 and consequently retire later. Neither researchers nor policy-makers
 discussing the many critical issues surrounding illness and retirement
 have addressed this issue. 
Journal: Applied Economics 
Pages: 1921-1936 
Issue: 15 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690165 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690165 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1921-1936




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Li 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Li 
Title: Wealth, volume and stock market volatility: case of Hong Kong (1993-2001) 
Abstract:
  This article attempts to answer the question of whether the gain and loss
 in property market speculations and rate of information flow play a
 significant role in stock market volatility in Hong Kong. To test for our
 wealth-volume-volatility hypothesis, two different measures of volatility:
 absolute (absolute value of SD from mean with monthly dimension) and
 conditional (EGARCH) are used and results are compared. In both measures,
 we find evidence of a statistical presence of a wealth effect on stock
 market volatility, particularly in the investment of luxury class of
 property in Hong Kong. To account for this result, we apply the prospect
 theory, house money effect and the newly developed conditional confidence
 theory. Although we fail to establish a volume-volatility relationship in
 our estimation, we offer additional dimensions to the explanation of our
 observation. 
Journal: Applied Economics 
Pages: 1937-1953 
Issue: 15 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707019 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1937-1953




Template-Type: ReDIF-Article 1.0
Author-Name: David Giles 
Author-X-Name-First: David 
Author-X-Name-Last: Giles 
Title: Survival of the hippest: life at the top of the hot 100 
Abstract:
  We analyse the survival characteristics of recordings that reached the
 number one spot on the US popular music charts over the period 1955 to
 2003. Our results show that there has been a statistically significant
 change in the time spent at number one since 'album cuts' were included in
 the compilation of Billboard 's Hot 100. Survival time is significantly
 improved if the recording is by a female solo artist, or if it is an
 instrumental tune. We also find a significant 'Elvis effect'. 'I'll never
 be a saint, it's true. I'm too busy surviving!' (Madonna, 1994) 
Journal: Applied Economics 
Pages: 1877-1887 
Issue: 15 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707159 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707159 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1877-1887




Template-Type: ReDIF-Article 1.0
Author-Name: Hsuan-Chi Chen 
Author-X-Name-First: Hsuan-Chi 
Author-X-Name-Last: Chen 
Author-Name: Cyuan-Jhan Jhou 
Author-X-Name-First: Cyuan-Jhan 
Author-X-Name-Last: Jhou 
Author-Name: Hsiu-Chuan Yeh 
Author-X-Name-First: Hsiu-Chuan 
Author-X-Name-Last: Yeh 
Title: Signalling by underwriter retention rate in the IPO market 
Abstract:
  Underwriters in Taiwan have to purchase 10-25% of shares offered in
 initial public offerings (IPOs) for their own accounts. We present a
 signalling model showing that the underwriter retention rate can serve as
 a signal of firm value to investors because underwriters are investors as
 well. This mechanism can reduce information asymmetry between issuers and
 investors. The model shows that when underwriters retain more proportion
 of IPO shares, in equilibrium, the initial return is greater and the
 subscription success rate is lower. We further test the propositions using
 616 IPO firms in Taiwan for the period 1998-2004. Overall, the empirical
 results support the propositions developed from the signalling model. 
Journal: Applied Economics 
Pages: 1973-1983 
Issue: 15 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600706987 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600706987 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1973-1983




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Yilmazkuday 
Title: Inflation targeting supported by managed exchange rate 
Abstract:
  We compare, on a welfare loss basis, possible inflation targeting regimes
 supported by different exchange rate rules. For model parametrization, we
 estimate a forward looking monetary policy rule for Trukey. When variable
 inflation targets are taken into consideration, as opposed to the fixed
 targets used in prior research that use data from developed countries,
 forward looking Taylor rules provide a reasonable description of Central
 Bank behaviour in Turkey. By applying a calibration based on estimated
 parameters, we compare the loss functions under flexible inflation
 targeting and strict inflation targeting while taking into consideration
 the supporting regimes, namely a flexible exchange rate and a managed
 floating exchange rate. We find that the welfare loss function caused by
 four simultaneous shocks, namely a foreign interest rate shock, a monetary
 policy shock, a foreign output shock and a domestic output shock, is
 minimized under the flexible inflation targeting regime supported by a
 managed floating exchange rate rule. 
Journal: Applied Economics 
Pages: 2011-2026 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707068 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707068 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2011-2026




Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Xu 
Author-X-Name-First: Xiao 
Author-X-Name-Last: Xu 
Author-Name: Gail Jensen 
Author-X-Name-First: Gail 
Author-X-Name-Last: Jensen 
Title: Managed care and the near-elderly: effects of plan enrollment on functionality 
Abstract:
  This paper examines the effects of enrollment in a health maintenance
 organization (HMO) or a preferred provider organization (PPO) on the
 functional status of near-elderly adults (aged 55-64), compared to
 traditional fee-for-service (FFS) plans. A sample of 1306 near-elderly
 adults with employer-sponsored health insurance are drawn from the
 2000-2002 waves of the Health and Retirement Study, a nationally
 representative panel survey of community-dwelling adults. Regression
 models are estimated to assess the effects of different types of insurance
 plans on functionality, as measured by whether or not the individual has
 any functional limitations. The potential influence of selection bias into
 alternative types of plans is addressed by limiting the sample to
 near-elders without a choice of health plans. The effects of HMOs on
 functionality are shown to be comparable to those of FFS plans among the
 general near-elderly population. However, significant adverse effects of
 HMO enrollment on functional status are observed among near-elders with
 chronic conditions. PPO enrollees have similar functional outcome to FFS
 enrollees, even among those with chronic conditions. The observed
 differences in functional outcome across plans have important implications
 for the practicality of managed care plans serving older adults. 
Journal: Applied Economics 
Pages: 2027-2037 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707217 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707217 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2027-2037




Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Falck 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Falck 
Title: Survival chances of new businesses: do regional conditions matter? 
Abstract:
  This article analyses the effects of industry-, regional- and firm-level
 characteristics on the post-entry performance of new businesses by means
 of an econometric survival time model. First preference is given to an
 accelerated failure time model assuming a log-logistic distribution. The
 data involve a representative sample of businesses in the private sector
 of West Germany during 1993 to 2002 period. The results demonstrate that
 the regional dimension is most important; whereas firm-level
 characteristics play a subordinated role. 
Journal: Applied Economics 
Pages: 2039-2048 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749615 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749615 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2039-2048




Template-Type: ReDIF-Article 1.0
Author-Name: Vaughan Dickson 
Author-X-Name-First: Vaughan 
Author-X-Name-Last: Dickson 
Title: Concentration history and market power in US manufacturing industries 
Abstract:
  For a 1963-1992 panel of US manufacturing industries, the relationship
 between seller concentration and both price-cost margins (PCMs) and prices
 is investigated for industries divided by whether concentration has
 recently increased or decreased. Regressions of PCM in levels and first
 differences, and price equations in first differences, establish that the
 positive effect of concentration on prices and profits is always weaker in
 industries where concentration has recently increased and always stronger
 in industries where concentration has recently decreased. These results
 are attributed to the different endogeneity biases in the two samples.
 Increasing concentration industries are more likely the ones where leading
 firms have lowered prices to gain share, while decreasing concentration
 industries are more likely the ones where smaller firms have lowered
 concentration by lowering prices. An additional conclusion is that the
 cost-reducing effects of changes in concentration are greater for
 increasing concentration industries, meaning that increasing concentration
 industries have lower price increases compared to decreasing concentration
 industries. 
Journal: Applied Economics 
Pages: 2049-2055 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749466 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749466 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2049-2055




Template-Type: ReDIF-Article 1.0
Author-Name: Josse Delfgaauw 
Author-X-Name-First: Josse 
Author-X-Name-Last: Delfgaauw 
Title: Where to go? Workers' reasons to quit and intra- vs. interindustry job mobility 
Abstract:
  We show that workers' reasons for quitting their job affect their
 decision to stay in or leave their industry, using survey data among
 public sector employees in the Netherlands. Workers quitting for e.g. pay,
 work pressure, or job duties move relatively often to another industry, in
 contrast to workers quitting for commuting time or the atmosphere at work.
 This suggests that workers use their experience in the initial job to
 update their expectations on other jobs in the industry, as the first set
 of job aspects is more likely to be related among jobs within an industry
 than the latter. Furthermore, it is shown that workers' reasons to quit
 fully explain the differences in wage growth between intra- and
 interindustry job movers. Lastly, we find that workers who quit for pay or
 management often leave the public sector altogether. 
Journal: Applied Economics 
Pages: 2057-2067 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707092 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707092 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2057-2067




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Kargbo 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Kargbo 
Title: Forecasting agricultural exports and imports in South Africa 
Abstract:
  The implementation of wide-ranging policy reforms, including trade and
 exchange rate policies, is improving the efficiency of the South African
 economy and its reintegration into the global economy with rapid export
 expansion. Agricultural exports in the Southern African Customs Union
 increased from R8.14 billion in 1995 to R23.0 billion in 2003, whilst
 agricultural imports rose from R6.83 billion to R13.84 billion during the
 same period. This article uses alternative approaches to forecasting
 agricultural exports and imports in South Africa. The models used include:
 exponential smoothing, autoregressive integrated moving average (ARIMA),
 vector autoregression (VAR), Engle-Granger (EG) single-equation and vector
 error-correction models (VECM). We found that the ARIMA and EG methods
 outperform the VAR and VECM according to Theil's U-statistic. The VAR
 outperforms the VECM in forecasting agricultural exports in South Africa.
 The combined forecasts have a lower variance compared to individual
 forecasts, thereby, reducing the risks of making wrong decisions based on
 the forecasts. The article provides empirical evidence that is beneficial
 to policymakers and business leaders in South Africa as they strive to
 reduce poverty and inequality and increase economic growth. 
Journal: Applied Economics 
Pages: 2069-2084 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707183 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707183 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2069-2084




Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Morley 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Morley 
Author-Name: Dennis Thomas 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Thomas 
Title: Attendance demand and core support: evidence from limited-overs cricket 
Abstract:
  In this paper we construct and estimate a model for match attendances in
 English one-day, limited-overs league cricket. Our dataset separates 'pay
 at gate' spectators from club members, enabling us to distinguish between
 the attendance decisions of casual spectators and those of the,
 potentially, more committed 'core' supporters. In addition to providing a
 more direct analysis of the relatively underdeveloped issue of 'core
 support', we also investigate variability within the core. Apart from
 providing further evidence regarding demand determination in professional
 team sports we consider some specific policy implications particular to
 the 'peculiar' sport of cricket. 
Journal: Applied Economics 
Pages: 2085-2097 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707225 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707225 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2085-2097




Template-Type: ReDIF-Article 1.0
Author-Name: Nasri Harb 
Author-X-Name-First: Nasri 
Author-X-Name-Last: Harb 
Title: Trade between Euro zone and Arab countries: a panel study 
Abstract:
  We construct an aggregate data panel to estimate price and income
 elasticities of the Arab countries imports from and exports to Euro zone.
 We study the nonstationarity of our series and verify the cointegration
 hypothesis among the variables using Pedroni's (2004) heterogeneous panel
 cointegration tests. The panel data circumvent the problem of short span
 sample and increase the power of the nonstationarity tests. Then, we
 estimate the idiosyncratic and panel cointegrating vectors using dynamic
 ordinary least squares (DOLS) (Kao and Chiang, 2000), fully modified
 ordinary least squares (FMOLS) (Phillips and Hansen, 1990) and group mean
 DOLS and FMOLS developed by Pedroni (2000, 2001). Our variables are shown
 to be cointegrated. Arab imports from Euro zone countries are income
 inelastic, but price elastic. Results of export function are not
 conclusive and depend on the used estimator. 
Journal: Applied Economics 
Pages: 2099-2107 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722307 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722307 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2099-2107




Template-Type: ReDIF-Article 1.0
Author-Name: Lean Hooi Hooi 
Author-X-Name-First: Lean Hooi 
Author-X-Name-Last: Hooi 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Are Asian real exchange rates mean reverting? Evidence from univariate and panel LM unit root tests with one and two structural breaks 
Abstract:
  There are a number of studies that examine the purchasing power parity
 (PPP) hypothesis. The empirical findings from the extant literature for
 the PPP hypothesis are mixed. This article applies univariate and panel
 Lagrange Multiplier (LM) unit root tests with one and two structural
 breaks to real exchange rates for 15 Asian countries. The univariate LM
 unit root tests find evidence of PPP for two-thirds of the sample. The
 results from the panel LM unit root test support long-run PPP for the
 Asian countries in the sample. The results from the LM panel unit root
 tests differ from those of existing panel unit root tests of PPP for Asian
 countries that have not allowed for the existence of structural breaks. 
Journal: Applied Economics 
Pages: 2109-2120 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722331 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722331 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2109-2120




Template-Type: ReDIF-Article 1.0
Author-Name: Bilin Neyapt&#x131; 
Author-X-Name-First: Bilin 
Author-X-Name-Last: Neyapt&#x131; 
Author-Name: Fatma Task&#x131;n 
Author-X-Name-First: Fatma 
Author-X-Name-Last: Task&#x131;n 
Author-Name: Murat Ungor 
Author-X-Name-First: Murat 
Author-X-Name-Last: Ungor 
Title: Has European Customs Union Agreement really affected Turkey's trade? 
Abstract:
  The numerous discussions regarding the advantages and disadvantages of
 Turkey's becoming a member of the Customs Union has been inconclusive. The
 empirical analysis that mostly focus on the changes in the volume of trade
 without much regard to the conjectural changes have also been
 insufficient. This study attempts to shed light on this issue in a formal
 analysis of Turkey's international trade by empirically accounting for the
 changes before and after the Customs Union Agreement (CUA). In doing so,
 we explicitly account for the concurrent changes in the macroeconomic
 environment that may have affected Turkey's trade with the rest of the
 world. Our empirical findings indicate that CUA has not only positively
 impacted on Turkey's trade, but also led to changes in the behaviour of
 both exports and imports with regards to their responsiveness to
 underlying variables. 
Journal: Applied Economics 
Pages: 2121-2132 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600735390 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735390 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2121-2132




Template-Type: ReDIF-Article 1.0
Author-Name: Jae-Young Lim 
Author-X-Name-First: Jae-Young 
Author-X-Name-Last: Lim 
Title: The effect of patient's asymmetric information problem on elderly use of medical care 
Abstract:
  It has been proposed that the patient's relative ignorance about
 medicine, 'asymmetry of information between doctor and patient', should
 place a patient in a disadvantaged position when purchasing medical care.
 Even if rapidly developing information technologies can enhance the
 patient's access to health information, a patient doesn't have enough
 ability to understand, interpret and evaluate it. So, the doctor's effort
 at sincerely helping patient understand and utilize health information by
 effective communication with patient might improve the patient's
 asymmetric information problem and affect the patient's use of medical
 care by way of its being a source of patient's solid trust on doctor. This
 research seeks to determine whether a doctor's effort, mentioned earlier
 can affect the elderly use of medical care. This study used data from a
 survey sample of people aged more than 65 living in Seoul and Chuncheon,
 Korea. The results suggest the doctor's effort level has a statistically
 significant positive effect on the elderly use of medical care, which
 suggest a doctor's effort of effectively communicating with patient would
 ameliorate patient's information problem and it could be a source of
 patient's trust on doctor, so this trust would lead a patient to consume
 more medical care. 
Journal: Applied Economics 
Pages: 2133-2142 
Issue: 16 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707142 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2133-2142




Template-Type: ReDIF-Article 1.0
Author-Name: Harald Badinger 
Author-X-Name-First: Harald 
Author-X-Name-Last: Badinger 
Title: Market size, trade, competition and productivity: evidence from OECD manufacturing industries 
Abstract:
  This article investigates empirically the links between market size,
 trade, competition and productivity, using a cross-section of 11 OECD
 countries and 11 manufacturing industries over the period 1995 to 2000. To
 deal with endogeneity concerns we extend the Frankel and Romer (1999)
 approach to construct instruments for both trade and competition. We find
 that larger, more integrated markets exhibit more competition (lower
 markups) and higher productivity, in line with the theoretical model by
 Melitz and Ottaviano (2005). The pro-competitive effect of trade accounts
 for approximately 30% of trade's total productivity effects. 
Journal: Applied Economics 
Pages: 2143-2157 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707282 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707282 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2143-2157




Template-Type: ReDIF-Article 1.0
Author-Name: Didier Soopramanien 
Author-X-Name-First: Didier 
Author-X-Name-Last: Soopramanien 
Author-Name: Robert Fildes 
Author-X-Name-First: Robert 
Author-X-Name-Last: Fildes 
Author-Name: Alastair Robertson 
Author-X-Name-First: Alastair 
Author-X-Name-Last: Robertson 
Title: Consumer decision making, E-commerce and perceived risks 
Abstract:
  This article studies how adoption and usage behaviour of the Internet and
 online shopping, respectively influence the preference to use electronic
 commerce to purchase different types of products. We empirically model the
 preference for electronic commerce when consumers have to buy different
 types of products and thus face different types of risks (Cox and Rich,
 1964). Unlike previous research, we find that consumers who have
 previously shopped online, display stronger preferences to buy products on
 the Internet irrespective of the perceived level of product-specific risks
 of online shopping. This article provides an interesting and novel insight
 into how both adoption and usage of electronic commerce impact on the
 attitude and risk perception of buying less predictable (more risky)
 products on the Internet. 
Journal: Applied Economics 
Pages: 2159-2166 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749565 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749565 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2159-2166




Template-Type: ReDIF-Article 1.0
Author-Name: James Ang 
Author-X-Name-First: James 
Author-X-Name-Last: Ang 
Title: Are saving and investment cointegrated? The case of Malaysia (1965-2003) 
Abstract:
  This article examines whether domestic saving rate leads to higher
 domestic investment rate in the case of Malaysia. We argue that the
 results obtained from cross-sectional studies are not able to address this
 issue satisfactorily and highlight the importance of individual country
 case studies. Using the recently developed autoregressive distributed lag
 bounds testing procedure, the results reveal a robust cointegrated
 relationship between domestic saving and investment rates during the
 period 1965 to 2003. 
Journal: Applied Economics 
Pages: 2167-2174 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722281 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722281 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2167-2174




Template-Type: ReDIF-Article 1.0
Author-Name: Kostas Tsekouras 
Author-X-Name-First: Kostas 
Author-X-Name-Last: Tsekouras 
Author-Name: Dimitris Skuras 
Author-X-Name-First: Dimitris 
Author-X-Name-Last: Skuras 
Author-Name: Irene Daskalopoulou 
Author-X-Name-First: Irene 
Author-X-Name-Last: Daskalopoulou 
Title: Is productive inefficiency a fatal disease? The effects of technical and scale efficiency in firm exit: the case of the Greek rubber and plastic industry 
Abstract:
  This article presents an integrated framework for testing the effects of
 productive efficiency, i.e. technical efficiency (TE) and scale efficiency
 (SE), on firm exit, facilitating the identification of the effects,
 causing a firm's operation at increasing or decreasing returns to scale. A
 panel data set of firms in the plastics and rubber industry of the Greek
 manufacturing sector is used to study the effect that TE and SE may have
 on a firm's probability to exit. Results reveal that technical efficiency
 is the most critical factor influencing firm exit, while SE exerts a
 quadratic effect on the probability to exit. 
Journal: Applied Economics 
Pages: 2175-2187 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749482 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749482 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2175-2187




Template-Type: ReDIF-Article 1.0
Author-Name: Sainan Jin 
Author-X-Name-First: Sainan 
Author-X-Name-Last: Jin 
Author-Name: Liangjun Su 
Author-X-Name-First: Liangjun 
Author-X-Name-Last: Su 
Title: Forecasting the car penetration rate (CPR) in China: a nonparametric approach 
Abstract:
  With strong economic growth, the auto industry has made great
 breakthroughs in recent years and has become a backbone industry in China,
 while cars play an increasingly important role, and are now the principal
 part of the auto industry. Both China's government and academic circles
 take strong interest in the prediction of CPR (i.e. car penetration rate
 or cars per thousand people), which will be the main guidance for the
 future industry policy. We summarize the existing problems in recent
 research and propose to use nonparametric methods to estimate the CPR and
 its elasticity with respect to GDP per capita (GDPPC). The results
 indicate that the nonparametric methods provide a much better fit than the
 conventional OLS method, and more importantly, it captures the
 nonlinearity of the elasticity of CPR with respect to GDPPC. Finally, we
 predict future CPR in China. 
Journal: Applied Economics 
Pages: 2189-2195 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749631 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749631 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2189-2195




Template-Type: ReDIF-Article 1.0
Author-Name: Ansgar Belke 
Author-X-Name-First: Ansgar 
Author-X-Name-Last: Belke 
Author-Name: Thorsten Polleit 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Polleit 
Title: How the ECB and the US Fed set interest rates 
Abstract:
  Monetary policies of the European Central Bank (ECB) and US Fed can be
 characterized by 'Taylor rules', that is both central banks seem to be
 setting rates by taking into account the 'output gap' and inflation. We
 also set up and tested Taylor rules which incorporate money growth and the
 euro-dollar exchange rate, thereby improving the 'fit' between actual and
 Taylor rule based rates. In general, Taylor rules appear to be a much
 better way of describing Fed policy than ECB policy. Simulations suggest
 that the ECB's short-term interest rates have been at a much lower level
 in the last 2 years compared with what a Taylor rule would suggest. 
Journal: Applied Economics 
Pages: 2197-2209 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749623 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749623 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2197-2209




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Kargbo 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Kargbo 
Title: The effects of macroeconomic factors on South African agriculture 
Abstract:
  Significant research efforts have been devoted to understanding the
 effects of macroeconomic factors on the agriculture sector. Analysing the
 sources of volatility in the industry is critical for designing
 appropriate policies to stabilize agricultural markets, reduce poverty and
 increase economic growth. Agriculture is a competitive sector with prices
 that are more flexible than those in nonagricultural sectors. This article
 uses annual data over the 1957-2004 period and a vector error-correction
 model in investigating the dynamic effects of exchange rates, money supply
 and other macroeconomic variables on the agricultural sector in South
 Africa. Overall, real exchange rates, interest rates, inflation and money
 supply (M3) shocks have significant and persistent impacts on agricultural
 output, prices received by farmers and farm input prices. M3 and interest
 rate shocks tend to put agriculture in a cost-price squeeze. Agricultural
 price movements are a source of macroeconomic instability in the country.
 Real exchange rate shocks shift relative prices in favour of agriculture
 in the long-run, thereby, boosting farm incomes and accelerating poverty
 reduction in the country. 
Journal: Applied Economics 
Pages: 2211-2230 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600735374 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735374 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2211-2230




Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Cheng Hung 
Author-X-Name-First: Jui-Cheng 
Author-X-Name-Last: Hung 
Author-Name: Shi-Jie Jiang 
Author-X-Name-First: Shi-Jie 
Author-X-Name-Last: Jiang 
Author-Name: Chien-Liang Chiu 
Author-X-Name-First: Chien-Liang 
Author-X-Name-Last: Chiu 
Title: Jump risk of Presidential election: evidence from Taiwan stock and foreign exchange markets 
Abstract:
  This article employs jump-diffusion models, including the ARJI model and
 the GARCH-jump model, to examine jump intensity and volatility of Taiwan
 stock and foreign exchange markets during a Presidential election period.
 The empirical results indicate that, firstly, the ARJI model fits data
 better than the GARCH-jump model. Secondly, the Presidential election
 events enhance the jump intensity of both markets and the jump-induced
 variance is higher than diffusion-induced variance. It reveals the
 importance of the discrete jump process during a Presidential election
 period, and might provide some implications for option pricing or hedging
 strategy. Due to the intervention of the Central Bank in the foreign
 exchange market during a Presidential election period, the results
 indicate that jump intensity and volatility of jump size are more
 moderate. 
Journal: Applied Economics 
Pages: 2231-2240 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749458 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749458 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2231-2240




Template-Type: ReDIF-Article 1.0
Author-Name: Eric Lin 
Author-X-Name-First: Eric 
Author-X-Name-Last: Lin 
Author-Name: Shih-Ying Wu 
Author-X-Name-First: Shih-Ying 
Author-X-Name-Last: Wu 
Title: Lottery expenses and charitable contributions - Taiwan's experience 
Abstract:
  Individuals' contributions are affected by their lottery outlays if they
 consider their spending of lottery funds on charities to be a substitute
 for or a complement to their direct charitable contributions. This study
 investigates the effect of lottery outlays on charitable contributions
 based on the experience of lottery introduction in Taiwan. The estimates
 reveal that lottery outlays exert a positive effect on charitable
 contributions while the quantitative impact is significant. This study
 thus provides evidence ameliorating the pessimistic prospect that people
 may reduce their direct charitable contributions when they spend more on
 lotteries. Possible explanations for the positive effect are also
 discussed. 
Journal: Applied Economics 
Pages: 2241-2251 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2241-2251




Template-Type: ReDIF-Article 1.0
Author-Name: Raymond Swaray 
Author-X-Name-First: Raymond 
Author-X-Name-Last: Swaray 
Title: How did the demise of international commodity agreements affect volatility of primary commodity prices? 
Abstract:
  This article has used the T-GARCH and E-GARCH models to answer the
 following two questions regarding the pattern of volatility of commodity
 prices following the demise of international commodity agreements
 (hereafter ICAs) in five key commodities: firstly, the question of whether
 the collapse or suspension of ICAs contributed to asymmetry in price
 volatility and secondly, the question of whether the collapse or
 suspension of ICAs led to an increase in persistence in price volatility.
 The results show that breakdown of ICAs was generally followed by higher
 degree asymmetry in price volatility but lower persistence in volatility. 
Journal: Applied Economics 
Pages: 2253-2260 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2253-2260




Template-Type: ReDIF-Article 1.0
Author-Name: Suthep Buranakunaporn 
Author-X-Name-First: Suthep 
Author-X-Name-Last: Buranakunaporn 
Author-Name: Edward Oczkowski 
Author-X-Name-First: Edward 
Author-X-Name-Last: Oczkowski 
Title: A dynamic econometric model of Thailand manufacturing energy demand 
Abstract:
  The purpose of this article is to employ the dynamic translog framework
 to model inter-factor and inter-fuel energy demand for the Thai
 manufacturing sector. The Denny et al. (1981) and Lynk (1989) framework,
 which proposes a dynamic adjustment for capital stock is employed to
 motivate the estimated of factor demand and fuel share equations. Three
 factors: energy, labour and capital; and five fuel types: fuel oil, diesel
 oil, liquified petroleum gas (LPG), electricity, and coal and lignite; are
 examined. Regression diagnostics support the empirical specification.
 Numerous factor and fuel substitution possibilities are identified, with
 some policy implications described. 
Journal: Applied Economics 
Pages: 2261-2267 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707167 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707167 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2261-2267




Template-Type: ReDIF-Article 1.0
Author-Name: Katy Cornwell 
Author-X-Name-First: Katy 
Author-X-Name-Last: Cornwell 
Author-Name: Brett Inder 
Author-X-Name-First: Brett 
Author-X-Name-Last: Inder 
Title: Evidence for the ineffectiveness of debt rescheduling as a policy instrument 
Abstract:
  Where an economy cannot meet its external debt service obligations, it is
 forced to appeal to creditors for rescheduling of the debt. As such,
 rescheduling is evidence of a country's incapacity to carry a debt burden.
 This article explores factors that explain the probability of a country
 requiring debt rescheduling in a panel framework. The current literature
 is extended by modelling a dynamic random effects panel probit, in order
 to identify a presence of state dependence after controlling for country
 heterogeneity. We find clear evidence of state dependence when a 2-year
 lag of the dependent variable is allowed for, suggesting that overall, the
 fact that a country has experienced a rescheduling arrangement in the past
 does indeed make them more likely to experience further rescheduling. The
 article stresses that in order to draw the appropriate policy conclusions
 from this finding, one must understand that the debt rescheduling variable
 is itself a policy response variable. The fact that further rescheduling
 is often required within 2 years of a previous action suggests that
 rescheduling as it took place in the 1980s and 1990s was an inadequate
 response that often did little to help countries move beyond their current
 debt crisis. 
Journal: Applied Economics 
Pages: 2269-2278 
Issue: 17 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707175 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707175 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2269-2278




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Fertig 
Author-X-Name-First: Michael 
Author-X-Name-Last: Fertig 
Title: The effectiveness of qualification measures for employed workers - an evaluation study for Saxony 
Abstract:
  This article investigates whether and to what extent employment policy
 measures (co-) financed by the European Social Fund in Germany meet their
 objective. Specifically, it is analysed whether qualification programs for
 employed workers in the German state of Saxony were effective in terms of
 employment protection. To this end, a control function approach is
 implemented which utilizes a unique firm-level dataset. This model
 explicitly accounts for unobserved heterogeneity between participating and
 nonparticipating companies by modelling the participation decision
 process. Our results suggest a positive effect of program participation.
 However, this positive treatment effect varies considerably across
 different sub-groups of the treatment as well as the comparison group. 
Journal: Applied Economics 
Pages: 2279-2301 
Issue: 18 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707233 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707233 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2279-2301




Template-Type: ReDIF-Article 1.0
Author-Name: Bharat Kolluri 
Author-X-Name-First: Bharat 
Author-X-Name-Last: Kolluri 
Author-Name: Mahmoud Wahab 
Author-X-Name-First: Mahmoud 
Author-X-Name-Last: Wahab 
Title: Asymmetries in the conditional relation of government expenditure and economic growth 
Abstract:
  Previous studies on the relationship between government expenditure and
 economic growth have, invariably, aggregated periods of strong and weak
 GDP growth and reported a single government expenditure response
 coefficient estimate. We argue that traditional test specifications of
 this relationship suffer from aggregation (or omitted variables) biases by
 failing to distinguish between diverse economic growth experiences and
 their impact on government expenditure. We reexamine the evidence
 concerning Wagner's Law using a proposed conditional test specification
 that is capable of: (a) separating periods of strong and weak economic
 growth, (b) accommodating possible asymmetries in the marginal responses
 of government expenditure to variations in economic growth and (c)
 distinguishing between positive and negative asymmetries in such
 responses. We present evidence showing that: (a) the majority of
 government expenditure responses tend to occur during periods of an
 economic slowdown characterized by GDP growth that is below trend-growth;
 and (b) there is little evidence suggesting that government expenditure
 increases markedly during periods of an economic expansion when GDP growth
 is at/above trend-growth. Results from several tests of hypotheses also
 corroborate these findings. When we aggregate response coefficients across
 periods of above trend-growth and below trend-growth, we obtain an elastic
 aggregate response coefficient for OECD countries in line with Wagner's
 proposition. However, the evidence seems less forthcoming for EU
 economies. Nonetheless, the estimated cumulative response coefficient from
 our conditional asymmetric specification exceeds the estimated response
 coefficient from a traditional symmetric test specification which appears
 biased against finding support for Wagner's proposition due to omission of
 important directional asymmetry variables from the estimating equation. 
Journal: Applied Economics 
Pages: 2303-2322 
Issue: 18 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707126 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707126 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2303-2322




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: Viswanadham Manchu 
Author-X-Name-First: Viswanadham 
Author-X-Name-Last: Manchu 
Title: A comprehensive analysis of farmland value determination: a county-level analysis 
Abstract:
  This study develops a comprehensive model of farmland value determination
 to analyze the effects of various economic variables such as net farm
 income, government payments, macroeconomic factors, and demographic
 conditions on farmland values for the counties along the Snake River
 valley in Idaho. Land values, net farm income, and population show
 considerable variation among the counties. Therefore, use of county level
 cross-sectional and time-series data helps to assess the impacts of
 various factors on land values more accurately. The empirical results show
 that net farm income, wheat yield, population, and credit availability
 have positive effects, and property tax rates, interest rates, and debt to
 asset ratio have negative effects on farmland values. 
Journal: Applied Economics 
Pages: 2323-2330 
Issue: 18 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600675687 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675687 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2323-2330




Template-Type: ReDIF-Article 1.0
Author-Name: William Choi 
Author-X-Name-First: William 
Author-X-Name-Last: Choi 
Author-Name: Lan Liang 
Author-X-Name-First: Lan 
Author-X-Name-Last: Liang 
Title: Reverse moral hazard of liability insurers: evidence from medical malpractice claims 
Abstract:
  This study investigates putative differences in the legal defense of
 medical malpractice claims between liability carriers with distinct
 ownership forms: doctor-controlled and commercial-stock. The scope of a
 carrier's legal defense is determined by claim characteristics, such as
 injury severity and liability, and possibly the doctor's private costs
 from settling or losing a claim. When a carrier does not internalize the
 doctor's private costs from losing or settling a claim, then a conflict of
 interest arises as the carrier provides a lower level of legal defense
 than preferred by the doctor (i.e., reverse moral hazard). The perception
 is that doctor-sponsored carriers mitigate such conflicts of interest. If
 this is the case, we should expect to see differences in the amount spent
 by the carrier in defense of the doctor and the propensity to settle
 claims. To test these expectations, we use medical malpractice claims
 filed in Florida between 1985 and 1990. We indeed find differences in
 legal defense in terms of amount spent on legal defense and settlement
 rate between carriers with different ownership. The doctor-sponsored
 carrier we investigated was less likely to settle out-of-court, and did
 spend more on a doctor's legal defense than stock carriers. 
Journal: Applied Economics 
Pages: 2331-2340 
Issue: 18 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500427080 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427080 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2331-2340




Template-Type: ReDIF-Article 1.0
Author-Name: Kazuo Ogawa 
Author-X-Name-First: Kazuo 
Author-X-Name-Last: Ogawa 
Title: Why did Japan's household savings rate fall in the 1990s? 
Abstract:
  This study investigates empirically why Japan's household savings rate
 fell in the 1990s. We constructed an economic model consisting of two
 types of household: unconstrained life cycle households and
 liquidity-constrained households. Unconstrained households generally save,
 but liquidity-constrained households consume all of their disposable
 income. We found that the proportion of liquidity-constrained households
 increased sharply in the late 1990s, which led to a decline in Japan's
 household savings rate. Our simulation analysis demonstrates that if the
 proportion of liquidity-constrained households in the 1990s had stayed at
 the level as that of the late 1980s, the household savings rate would have
 increased by four% points in 2001 and 2002. 
Journal: Applied Economics 
Pages: 2341-2353 
Issue: 18 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600639899 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600639899 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2341-2353




Template-Type: ReDIF-Article 1.0
Author-Name: Benno Torgler 
Author-X-Name-First: Benno 
Author-X-Name-Last: Torgler 
Author-Name: Sascha Schmidt 
Author-X-Name-First: Sascha 
Author-X-Name-Last: Schmidt 
Title: What shapes player performance in soccer? Empirical findings from a panel analysis 
Abstract:
  In this article, we investigate the pay-performance relationship of
 soccer players using individual data from eight seasons of the German
 soccer league Bundesliga. We find a nonlinear pay-performance
 relationship, indicating that salary does indeed affect individual
 performance. The results further show that player performance is affected
 not only by absolute income level but also by relative income position. An
 additional analysis of the performance impact of team effects provides
 evidence of a direct impact of team-mate attributes on individual player
 performance. 
Journal: Applied Economics 
Pages: 2355-2369 
Issue: 18 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600660739 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600660739 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2355-2369




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Zofio 
Author-X-Name-First: Jose 
Author-X-Name-Last: Zofio 
Title: Malmquist productivity index decompositions: a unifying framework 
Abstract:
  In two widely cited but unpublished working papers, Simar and Wilson
 (1998) and Zofio and Lovell (1998) proposed an alternative decomposition
 of the Malmquist Productivity Index, which retained what seemed to be the
 strongholds of previous proposals with regard to the contribution of
 technological and efficiency change to productivity change. Namely, a
 technical change term with regard to the best practice variable returns to
 scale (VRS) technology, which is to be found in Ray and Desli (1997) and a
 scale efficiency change term that illustrates a firm's situation with
 regard to optimal scale (benchmark technology), Fare et al. (1994).
 Attaining this objective required the introduction of an additional term
 in the Malmquist Productivity Index decomposition, which would reflect the
 scale bias of technical change. It is our objective to provide economic
 rationale for this term within a theory of production context, the
 existing decompositions and recent articles that further elaborate on this
 issue. The ideas are illustrated using productivity trends in 17 OECD
 countries. 
Journal: Applied Economics 
Pages: 2371-2387 
Issue: 18 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606260 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606260 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2371-2387




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Hai Yang 
Author-X-Name-First: Chih-Hai 
Author-X-Name-Last: Yang 
Author-Name: Chun-Chien Kuo 
Author-X-Name-First: Chun-Chien 
Author-X-Name-Last: Kuo 
Title: Lower bounds of concentration in Taiwan's manufacturing industries: do exports matter? 
Abstract:
  This article aims to test Sutton's 'lower bounds' approach on the
 analysis of market concentration in a small open economy like Taiwan.
 Exporting, which is important to a small open economy, is also considered
 in order to investigate the role of foreign competition on the market
 structure. Using a stochastic frontier approach, the estimate findings are
 in accordance with Sutton's predictions, whereby the lower bounds for high
 advertising and/or R&D-intensive industries are higher than those for low
 advertising and/or R&D-intensive industries in Taiwan. At the same time,
 the lower bounds of concentrations for export-intensive industries do not
 differ significantly from that of nonexport-intensive industries. The
 deviations from the lower bound are explained by industry characteristics
 such as the cost disadvantage ratio, the share of small and median-size
 enterprises, turnover rate and growth rate. 
Journal: Applied Economics 
Pages: 2389-2401 
Issue: 18 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606237 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606237 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2389-2401




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chih Lee 
Author-X-Name-First: Ming-Chih 
Author-X-Name-Last: Lee 
Author-Name: Jui-Cheng Hung 
Author-X-Name-First: Jui-Cheng 
Author-X-Name-Last: Hung 
Title: Hedging for multi-period downside risk in the presence of jump dynamics and conditional heteroskedasticity 
Abstract:
  This study extends the one period zero-VaR (Value-at-Risk) hedge ratio
 proposed by Hung et al. (2005) to the multi-period case and incorporates
 the hedging horizon into the objective function under VaR framework. The
 multi-period zero-VaR hedge ratio has several advantages. First, compared
 to existing hedge ratios based on downside risk, it has an analytical
 solution and is simple to calculate. Second, compared to the traditional
 Minimum Variance (MV) hedge ratio, it considers expected return and
 remains optimal while the Martingale process is invalid. Thirdly, hedgers
 may elect an adequate hedging horizon and confidence level to reflect
 their level of risk aversion using the concept of VaR. Pondering the
 occurrence of volatility clustering and price jumps, this study utilizes
 the ARJI model to compute time-varying hedge ratios. Finally, both
 in-sample and out-of-sample hedging effectiveness between one-period hedge
 ratio and multi-period hedge ratio are evaluated for four hedging horizons
 and various levels of risk aversion. The empirical results indicate that
 hedgers wishing to hedge downside risk over long horizons should use the
 multi-period zero-VaR hedge ratios. 
Journal: Applied Economics 
Pages: 2403-2412 
Issue: 18 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707118 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707118 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2403-2412




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Cristina D'Addio 
Author-X-Name-First: Anna Cristina 
Author-X-Name-Last: D'Addio 
Author-Name: Tor Eriksson 
Author-X-Name-First: Tor 
Author-X-Name-Last: Eriksson 
Author-Name: Paul Frijters 
Author-X-Name-First: Paul 
Author-X-Name-Last: Frijters 
Title: An analysis of the determinants of job satisfaction when individuals' baseline satisfaction levels may differ 
Abstract:
  A growing literature seeks to explain differences in individuals'
 self-reported satisfaction with their jobs. The evidence so far has mainly
 been based on cross-sectional data and when panel data have been used,
 individual unobserved heterogeneity has been modelled as an ordered probit
 model with random effects. This article makes use of longitudinal data for
 Denmark, taken from the waves 1995-1999 of the European Community
 Household Panel, and estimates fixed effects ordered logit models using
 the estimation methods proposed by Ferrer-i-Carbonel and Frijters (2004)
 and Das and van Soest (1999). For comparison and testing purposes a random
 effects ordered probit is also estimated. Estimations are carried out
 separately on the samples of men and women for individuals' overall
 satisfaction with the jobs they hold. We find that using the fixed effects
 approach (that clearly rejects the random effects specification),
 considerably reduces the number of key explanatory variables. The impact
 of central economic factors is the same as in previous studies, though.
 Moreover, the determinants of job satisfaction differ considerably between
 the genders, in particular once individual fixed effects are allowed for. 
Journal: Applied Economics 
Pages: 2413-2423 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707357 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707357 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2413-2423




Template-Type: ReDIF-Article 1.0
Author-Name: Robin Johnson 
Author-X-Name-First: Robin 
Author-X-Name-Last: Johnson 
Author-Name: W. A. Razzak 
Author-X-Name-First: W. A. 
Author-X-Name-Last: Razzak 
Author-Name: Steven Stillman 
Author-X-Name-First: Steven 
Author-X-Name-Last: Stillman 
Title: Has New Zealand benefited from its investments in research & development? 
Abstract:
  We use panel data for nine industries to evaluate research and
 development (R&D) investments in New Zealand over the past forty years. We
 estimate the impact of R&D stocks in a particular industry on output per
 person in that industry and on output per person in the rest of the
 economy. We examine both public and private R&D investments. Privately
 provided R&D has a statistically significant positive impact on
 own-industry output per person, suggesting it increases productivity.
 However, publicly provided R&D has no impact on own-industry output per
 person. There is also evidence that private R&D in certain industries
 positively affects output per person in the rest of the economy, i.e. it
 generates positive spillovers. There is no evidence of positive spillovers
 from publicly provided R&D. 
Journal: Applied Economics 
Pages: 2425-2440 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707308 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707308 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2425-2440




Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Mohammadi 
Author-X-Name-First: Hassan 
Author-X-Name-Last: Mohammadi 
Author-Name: Murat Cak 
Author-X-Name-First: Murat 
Author-X-Name-Last: Cak 
Author-Name: Demet Cak 
Author-X-Name-First: Demet 
Author-X-Name-Last: Cak 
Title: Capital mobility and foreign debt sustainabilty: some evidence from Turkey 
Abstract:
  This paper address the extent of capital mobility and foreign debt
 sustainability in Turkey over the 1962-2003 period by examining the
 relationship between saving and investment, and imports and exports,
 respectively. The empirical investment is based on cointegration, error
 correction models, and threshold and momentum threshold autoregressive
 models. Our findings are consistent with the existence of capital mobility
 and the 'Strong' form of foreign debt sustainability. 
Journal: Applied Economics 
Pages: 2441-2449 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707274 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707274 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2441-2449




Template-Type: ReDIF-Article 1.0
Author-Name: Tahir Abdi 
Author-X-Name-First: Tahir 
Author-X-Name-Last: Abdi 
Title: Trade liberalization, technology, relative factor supplies and the relative wage: evidence from the South 
Abstract:
  There is much controversy about the role that trade liberalization,
 technological change and relative factor supplies have played in bringing
 about changes in the relative wage of the unskilled workers. Much of the
 empirical work on this issue has focused on the industrial countries and
 paid little attention to developing countries. To fill this gap, this
 study develops a special data set to examine the relative wage behaviour
 of a large number of developing countries. An empirical model based on the
 theory is used to test different explanations of the relative wage change.
 As predicted by the technology explanation, the empirical analysis in the
 study finds a significant negative link between the relative wage of
 unskilled workers and the technology index. The analysis, however, does
 not find a significant role for labour supplies or trade liberalization in
 determining the relative wage of unskilled-skilled workers. 
Journal: Applied Economics 
Pages: 2451-2463 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600567660 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600567660 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2451-2463




Template-Type: ReDIF-Article 1.0
Author-Name: Cees van Beers 
Author-X-Name-First: Cees 
Author-X-Name-Last: van Beers 
Author-Name: Jeroen C. J. M. van den Bergh 
Author-X-Name-First: Jeroen C. J. M. van den 
Author-X-Name-Last: Bergh 
Author-Name: Andre de Moor 
Author-X-Name-First: Andre de 
Author-X-Name-Last: Moor 
Author-Name: Frans Oosterhuis 
Author-X-Name-First: Frans 
Author-X-Name-Last: Oosterhuis 
Title: Determining the environmental effects of indirect subsidies: integrated method and application to the Netherlands 
Abstract:
  The term 'environmentally damaging subsidies' covers all sorts of direct
 and indirect subsidies with negative consequences for the environment.
 This article presents a method to determine the environmental impact of
 these subsidies. It combines a microeconomic framework with an
 environmental impact module. The method is particularly useful for
 analysing indirect subsidies. These are often hidden, and therefore, not
 recognized as subsidies. Use of the method will provide a basis for
 formulating corrective policy. The method is applied to several important
 subsidies in the Netherlands, in agriculture, energy and transport
 sectors. The results reveal large environmental effects, which deserve
 serious attention from policy makers. To illustrate the specific features
 of the method, its application to a particular subsidy, namely the
 exemption of excise taxes on aviation fuels, is presented in full detail. 
Journal: Applied Economics 
Pages: 2465-2482 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600592833 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592833 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2465-2482




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Seema Narayan 
Author-X-Name-First: Seema 
Author-X-Name-Last: Narayan 
Title: Are real exchange rates nonlinear with a unit root? Evidence on PPP for Italy: a note 
Abstract:
  In this article, we apply the recently developed threshold autoregression
 model to examine both linearity and stationarity of Italy's real exchange
 rate vis-a-vis her six trading partner (G6) countries. Our main finding is
 that Italy's real exchange rate is a nonlinear process that is not
 characterized by a unit root process for five of six trading partner
 countries. This provides strong support for purchasing power parity. 
Journal: Applied Economics 
Pages: 2483-2488 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600606369 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606369 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2483-2488




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani Oskooee 
Author-X-Name-First: Mohsen Bahmani 
Author-X-Name-Last: Oskooee 
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: Real and nominal effective exchange rates in MENA countries: 1970-2004 
Abstract:
  The main purposes of this article are 3-fold. First, we construct
 measures of real and nominal effective exchange rates for 14 Middle East
 and North African countries over the 1970-2004 period. Second, we test the
 validity of the Purchasing Power Parity (PPP) by applying the ADF and KPSS
 tests to the real effective exchange rates. Finally, we employ the bounds
 testing approach to cointegration and error-correction modelling to show
 that nominal devaluation leads to real devaluation in the short-run as
 well as in the long-run in many of the countries. 
Journal: Applied Economics 
Pages: 2489-2501 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690306 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690306 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2489-2501




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Gambacorta 
Author-X-Name-First: Leonardo 
Author-X-Name-Last: Gambacorta 
Author-Name: S. Iannotti 
Author-X-Name-First: S. 
Author-X-Name-Last: Iannotti 
Title: Are there asymmetries in the response of bank interest rates to monetary shocks? 
Abstract:
  This article examines the velocity and asymmetry of the response of bank
 interest rates to monetary policy shocks. Using an asymmetric vector error
 correction model, it analyses the pass-through of changes in money market
 rates to retail bank interest rates in Italy in the period 1985-2002. The
 main results of the article are: (1) the speed of adjustment of bank
 interest rates to monetary policy changes increased significantly after
 the introduction of the 1993 Consolidated Law on Banking; (2) interest
 rate adjustment in response to positive and negative shocks is asymmetric
 in the short run, but not in the long run; (3) banks adjust their loan
 (deposit) rate faster during periods of monetary tightening (easing); (4)
 this asymmetry almost vanished since the 1990s. 
Journal: Applied Economics 
Pages: 2503-2517 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707241 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707241 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2503-2517




Template-Type: ReDIF-Article 1.0
Author-Name: Athena Belegri-Roboli 
Author-X-Name-First: Athena 
Author-X-Name-Last: Belegri-Roboli 
Author-Name: Panayotis Michaelides 
Author-X-Name-First: Panayotis 
Author-X-Name-Last: Michaelides 
Title: Estimating labour and output gap: evidence from the Athens Olympic Region in Greece 
Abstract:
  The present article estimates potential labour and labour gap as well as
 potential output and output gap using a Cobb-Douglas production function
 and a Hodrick-Prescott filter. We investigate the Athens Region in Greece
 by sector of economic activity, with the aid of the non-accelerating wage
 inflation rate of unemployment concept. The results support the idea that
 the Athens region seems to be working, mostly, over the regional economy's
 capabilities, a fact which leads to inflationary pressure. 
Journal: Applied Economics 
Pages: 2519-2528 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707290 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707290 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2519-2528




Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Bonilla 
Author-X-Name-First: Claudio 
Author-X-Name-Last: Bonilla 
Author-Name: Rafael Romero-Meza 
Author-X-Name-First: Rafael 
Author-X-Name-Last: Romero-Meza 
Author-Name: Melvin Hinich 
Author-X-Name-First: Melvin 
Author-X-Name-Last: Hinich 
Title: GARCH inadequacy for modelling exchange rates: empirical evidence from Latin America 
Abstract:
  This article checks for the adequacy of using GARCH models in exchange
 rate series. Using the Hinich portmanteau bicorrelation test, we find that
 a GARCH formulation or any of its variants fails to capture the data
 generating process of the main Latin American exchange rates. Our results
 highlight the potential of having misleading public policy when estimates
 are based in GARCH types of models. This article also complements recent
 similar findings encountered in European and Asian economies. 
Journal: Applied Economics 
Pages: 2529-2533 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707316 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707316 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2529-2533




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Asche 
Author-X-Name-First: Frank 
Author-X-Name-Last: Asche 
Author-Name: Shabbar Jaffry 
Author-X-Name-First: Shabbar 
Author-X-Name-Last: Jaffry 
Author-Name: Jessica Hartmann 
Author-X-Name-First: Jessica 
Author-X-Name-Last: Hartmann 
Title: Price transmission and market integration: vertical and horizontal price linkages for salmon 
Abstract:
  Relationships between prices are of interest when testing for market
 integration as well as analyses of supply chains. A feature that has
 received little attention is that if two supply chains are linked by
 market integration at some stage, then the whole supply chain will be
 linked. Furthermore, the leading price in such a system can be in one
 supply chain and will not be revealed in market integration studies or
 analysis of a single supply chain. An empirical analysis is provided for
 the supply chains for salmon which originates in Norway and the United
 Kingdom and is then sold at retail level in France as smoked salmon. We
 find a high degree of price transmission in both supply chains, as well as
 integrated markets. 
Journal: Applied Economics 
Pages: 2535-2545 
Issue: 19 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840500486524 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486524 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2535-2545




Template-Type: ReDIF-Article 1.0
Author-Name: David Byers 
Author-X-Name-First: David 
Author-X-Name-Last: Byers 
Author-Name: James Davidson 
Author-X-Name-First: James 
Author-X-Name-Last: Davidson 
Author-Name: David Peel 
Author-X-Name-First: David 
Author-X-Name-Last: Peel 
Title: The long memory model of political support: some further results 
Abstract:
  This article extends the results of Byers et al. (1997) on long memory in
 support for the Conservative and Labour Parties in the UK using longer
 samples and additional poll series. It finds continuing support for the
 ARFIMA(0, d, 0) model, though with somewhat smaller values of the long
 memory parameter. We find that the move to telephone polling in the
 mid-1990s had no apparent effect on the estimated value of d for either
 party. Finally, we find that we cannot reject the hypotheses that the
 parties share a common long memory parameter which we estimate at around
 0.65. 
Journal: Applied Economics 
Pages: 2547-2552 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707340 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707340 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2547-2552




Template-Type: ReDIF-Article 1.0
Author-Name: Glauco De Vita 
Author-X-Name-First: Glauco De 
Author-X-Name-Last: Vita 
Author-Name: Andrew Abbott 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Abbott 
Title: Do exchange rates have any impact upon UK inward foreign direct investment? 
Abstract:
  This article examines the impact of the level and volatility of the real
 exchange rate on UK foreign direct investment (FDI) inflows from the seven
 major countries of origin of the investment over the period 1975-2001. We
 use both fixed effects and dynamic generalized methods of moments (GMM)
 panel estimation techniques, and manufacturing data disaggregated by high
 and low R&D content of the sector of destination. Our results provide
 strong evidence that exchange rate volatility has a negative impact on FDI
 flows into the UK, irrespective of the sector of destination of the
 investment. On the other hand, the level of the real exchange rate is
 found to have a statistically insignificant effect on FDI after
 controlling for endogeneity of the regressors. 
Journal: Applied Economics 
Pages: 2553-2564 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749748 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749748 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2553-2564




Template-Type: ReDIF-Article 1.0
Author-Name: Miquel Clar 
Author-X-Name-First: Miquel 
Author-X-Name-Last: Clar 
Author-Name: Juan-Carlos Duque 
Author-X-Name-First: Juan-Carlos 
Author-X-Name-Last: Duque 
Author-Name: Rosina Moreno 
Author-X-Name-First: Rosina 
Author-X-Name-Last: Moreno 
Title: Forecasting business and consumer surveys indicators-a time-series models competition 
Abstract:
  The objective of this article is to compare different time-series methods
 for the short-run forecasting of Business and Consumer Survey Indicators.
 We consider all available data taken from the Business and Consumer Survey
 Indicators for the Euro area between 1985 and 2002. The main results of
 the forecast competition are offered not only for raw data but we also
 consider the effects of seasonality and removing outliers on forecast
 accuracy. In most cases, the univariate autoregressions were not
 outperformed by the other methods. As for the effect of seasonal
 adjustment methods and the use of data from which outliers have been
 removed, we obtain that the use of raw data has little effect on forecast
 accuracy. The forecasting performance of qualitative indicators is
 important since enlarging the observed time series of these indicators
 with forecast intervals may help in interpreting and assessing the
 implications of the current situation and can be used as an input in
 quantitative forecast models. 
Journal: Applied Economics 
Pages: 2565-2580 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600690272 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690272 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2565-2580




Template-Type: ReDIF-Article 1.0
Author-Name: Keith Brown 
Author-X-Name-First: Keith 
Author-X-Name-Last: Brown 
Title: How many viewers does a cable network need? A survival analysis of cable networks 
Abstract:
  This article employs survival/duration analysis to determine how
 subscriber levels affect cable networks' survival probabilities. Using
 piecewise-constant hazards estimation, we find that an additional one
 million subscribers increases a cable network's probability of survival in
 a given year by 17%. 
Journal: Applied Economics 
Pages: 2581-2587 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707191 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707191 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2581-2587




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Seema Narayan 
Author-X-Name-First: Seema 
Author-X-Name-Last: Narayan 
Title: Is devaluation expansionary or contractionary? Empirical evidence from Fiji 
Abstract:
  Devaluation has been traditionally promoted as an effective tool for
 increasing exports and improving the external position of the devaluing
 country if a nominal devaluation results in expenditure switching. In this
 article, our aim is to model the relationship between currency
 devaluations and output for Fiji. Following the approach in Bahmani et al.
 (2002), we extend the traditional model by incorporating other monetary
 and fiscal policy variables. We achieve our goal by using the recently
 developed bounds testing approach to cointegration and the autoregressive
 distributed lag model and find that devaluation is expansionary in the
 case of Fiji. 
Journal: Applied Economics 
Pages: 2589-2598 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707266 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707266 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2589-2598




Template-Type: ReDIF-Article 1.0
Author-Name: Helder de Mendonca 
Author-X-Name-First: Helder 
Author-X-Name-Last: de Mendonca 
Title: Towards credibility from inflation targeting: the Brazilian experience 
Abstract:
  This article analyses the use of the basic interest rate after the
 adoption of inflation targeting in Brazil and the credibility of this
 monetary regime through two indices that consider the Cukierman and
 Meltzer (1986) definition for credibility. It also shows the main
 theoretical and practical motives for changes in the conduction of the
 monetary policy in the 1970s; the way that inflation targeting strategy is
 inserted in rules vs. discretion analysis; and the main points that
 characterize the literature concerning inflation targeting. The findings
 denote that the strategy implemented in Brazil is not a good mechanism to
 develop credibility. 
Journal: Applied Economics 
Pages: 2599-2615 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600707324 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707324 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2599-2615




Template-Type: ReDIF-Article 1.0
Author-Name: James Odeck 
Author-X-Name-First: James 
Author-X-Name-Last: Odeck 
Title: Measuring technical efficiency and productivity growth: a comparison of SFA and DEA on Norwegian grain production data 
Abstract:
  This article compares data envelopment analysis and stochastic frontier
 analysis to assess efficiency and productivity growth of Norwegian grain
 producers. Previous studies have dealt with either one of them and less of
 both. For the assessment of productivity growth or regress, Malmquist
 productivity indices are derived from both approaches. The data cover a
 10-year period. We find consistency between the approaches to the extent
 that: (1) there are potentials for efficiency improvements, but the
 magnitudes depends on the model applied and by segmentation of the data
 set, (2) there has been a productivity improvement in the sector, on
 average in the interval 30-38% in the period studied and (3) technical
 change has had the greatest impact on productivity, indicating that
 producers have a tendency to catch-up with the front runners. In general,
 policy-makers are warned not to be indifferent with respect to the
 approach used for efficiency and productivity measurement as these may
 give different results. 
Journal: Applied Economics 
Pages: 2617-2630 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722224 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722224 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2617-2630




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Bastos 
Author-X-Name-First: Rafael 
Author-X-Name-Last: Bastos 
Author-Name: Julio Pindado 
Author-X-Name-First: Julio 
Author-X-Name-Last: Pindado 
Title: An agency model to explain trade credit policy and empirical evidence 
Abstract:
  This article explains trade credit policy based on the agency theory.
 According to this theory, we have developed an agency model based on the
 adverse selection and moral hazard phenomena arising from the relation
 between sellers and buyers. This model has been estimated by using panel
 data methodology applied to UK companies. Our findings strongly support
 the model proposed. We find that smaller firms, those with a smaller
 proportion of fixed assets, and those that are less profitable extend more
 trade credit, whereas firms with a high proportion of variable costs and
 high percentage of bad debts extend less. 
Journal: Applied Economics 
Pages: 2631-2642 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722232 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722232 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2631-2642




Template-Type: ReDIF-Article 1.0
Author-Name: Sean Pascoe 
Author-X-Name-First: Sean 
Author-X-Name-Last: Pascoe 
Title: Estimation of cost functions in a data poor environment: the case of capacity estimation in fisheries 
Abstract:
  Fisheries economic analysis is often handicapped by the lack of adequate
 data to undertake robust econometric analyses. In this study, a translog
 cost function was required to estimate the potential direction of
 adjustment in a UK fleet segment if a new regulatory regime was
 introduced. However, the available data were not appropriate for such
 estimation. Data envelopment analysis (DEA) was used to modify the data
 subsequently used in the estimation of the long-run cost function. The
 resulting model appears robust and is consistent with economic theory and
 the supporting evidence produced using DEA. 
Journal: Applied Economics 
Pages: 2643-2654 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722257 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722257 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2643-2654




Template-Type: ReDIF-Article 1.0
Author-Name: Ji-Chung Yang 
Author-X-Name-First: Ji-Chung 
Author-X-Name-Last: Yang 
Title: Variations of optimum firm and company town location 
Abstract:
  In the literatures of location and firm behaviour, most of the papers
 deal with location and theory of firms in conjunction with a heterogeneous
 space where markets are given at discrete points. Also, most of writers of
 the papers considered the optimum location problem only for an unregulated
 firm and industry. On the other hand, there are many regulated firms and
 industries in real economies. Also, we can consider a location problem of
 an industrial city (industry complex) which means a big company town. Many
 comparisons after combining some effects such as agglomeration (scale
 economies/diseconomies), etc. were implemented. We analysed the optimum
 location of industrial city (big company town) and input usage under
 regulatory constraint and agglomeration. We introduced an active
 constraint of a fair rate of return from the pioneering work of Averch and
 Johnson to the location problem of the big firm with multi inputs. With
 multi-inputs, simple one dimension locational problems are solved. 
Journal: Applied Economics 
Pages: 2655-2661 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722265 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722265 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2655-2661




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu 
Author-X-Name-First: Chun-Chu 
Author-X-Name-Last: Liu 
Title: A DEA study to evaluate the relative efficiency and investigate the reorganization of the credit department of farmers' associations in Taiwan 
Abstract:
  In this study data envelopment analysis models were applied to evaluate
 the relative efficiencies of the credit departments of farmers'
 associations (CDFAs) in Taiwan. The findings show that the overall
 efficiency scores are not best and scale for CDFAs in Taiwan is relative
 small. It implies that the reorganization of the CDFAs may be appropriate
 if more efficient organization is to be pursued. Thus, this study
 investigated CDFAs reorganization to increase the efficiency. The proposed
 CDFAs reorganization alternatives have higher average efficiency scores
 than the current CDFAs. 
Journal: Applied Economics 
Pages: 2663-2671 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722273 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722273 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2663-2671




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Lieh Huang 
Author-X-Name-First: Yu-Lieh 
Author-X-Name-Last: Huang 
Author-Name: Chao-Hsi Huang 
Author-X-Name-First: Chao-Hsi 
Author-X-Name-Last: Huang 
Title: The persistence of Taiwan's output fluctuations: an empirical study using innovation regime-switching model 
Abstract:
  In this article we examine the persistence nature of Taiwan's aggregate
 output fluctuations by using the 'innovation regime-switching' (IRS) model
 in which the effect of an innovation may be permanent or transitory,
 depending on an unobservable state variable that follows a first order
 Markov chain. By applying the IRS model to Taiwan's real GDP data, we find
 that during the 1961 to 2000 period 61% (39%) of the real output shocks
 are likely to have permanent (transitory) effects. Moreover, the
 innovations in the officially identified expansion (contraction) are more
 likely to have a permanent (transitory) effect. These results are similar
 to those found in many studies of US real output fluctuations, e.g.
 Beaudry and Koop (1993), Kim and Nelson (1999) and Kuan et al. (2005).
 However, we also find that Taiwan's output dynamics have changed
 drastically ever since year 2000. In particular, the shocks to real GDP
 have become more likely to have only transitory effect, even during the
 period of post-2001:IV expansion. 
Journal: Applied Economics 
Pages: 2673-2679 
Issue: 20 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600735382 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735382 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2673-2679




Template-Type: ReDIF-Article 1.0
Author-Name: Ranjula Bali Swain 
Author-X-Name-First: Ranjula Bali 
Author-X-Name-Last: Swain 
Title: The demand and supply of credit for households 
Abstract:
  The demand and supply of credit in the rural credit markets is
 investigated in this article using household data from India. The aim is
 to study the effects of household, farm productive characteristics and the
 policy variables on the demand and supply of credit. A type 3 Tobit model
 is estimated which corrects for sample selection and endogeniety bias. In
 addition, a generalized Double Hurdle model is estimated where the
 information on the household's access to credit is included to estimate
 the demand and supply of credit. The results suggest that the size of the
 operational holdings, net-wealth, dependency ratio, educational level of
 the household and the wages and output prices are important determinants
 of the demand and supply of credit for farm households. The Double Hurdle
 model confirms that the 'size of land owned' plays a crucial role in
 whether the household has access to a loan or not. 
Journal: Applied Economics 
Pages: 2681-2692 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749516 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749516 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2681-2692




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Thompson 
Author-X-Name-First: Mark 
Author-X-Name-Last: Thompson 
Title: Are adjustments in the default risk premium asymmetric? 
Abstract:
  This article employs threshold cointegration and error-correction models
 to the default risk premium. The approach allows asymmetry in the dynamic
 process that has not been captured in previous studies of corporate credit
 spreads. The results indicate that the adjustment process is asymmetric
 and would be beneficial to investors and macroeconomic forecasters as the
 default risk premium may signal future business cycles. 
Journal: Applied Economics 
Pages: 2693-2698 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2693-2698




Template-Type: ReDIF-Article 1.0
Author-Name: David Griffiths 
Author-X-Name-First: David 
Author-X-Name-Last: Griffiths 
Title: Forecasting income shares: are mean-reversion assumptions appropriate? 
Abstract:
  The article examines some statistical evidence that supports the view
 that US labour and capital shares of income return to some long-run
 historical values. We estimate the long-run share values and the length of
 time it takes to converge to them. We account for the interdependence of
 the shares by using a vector error-correction model, and this
 specification is tested against a VAR alternative using Johansen's method
 to characterize the properties of the cointegrating vector. We find
 support for the idea that labour and capital shares have historically been
 mean reverting, in spite of the fairly restrictive assumptions implied
 when invoking the Cobb-Douglas production function as the rationale. The
 cumulative impulse response functions indicate that for capital and labour
 shares, the time required to revert back to long run levels is in the
 order of thirty quarters. 
Journal: Applied Economics 
Pages: 2699-2711 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722299 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722299 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2699-2711




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Rodriguez 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: Rodriguez 
Author-Name: Indira Romero 
Author-X-Name-First: Indira 
Author-X-Name-Last: Romero 
Title: The role of permanent and transitory components in the fluctuations of Latin-American real exchange rates 
Abstract:
  Following the approach suggested by Engel and Kim (1999), we estimate the
 permanent and transitory components of the real exchange rates in four
 Latin-American countries for the period 1957:01 to 2002:04. Results
 suggest that transitory component is the driving force of the real
 exchange rates in Argentina and Mexico. A principal role of the permanent
 component is observed in the real exchange rates of Brazil and Chile.
 Estimates probabilities of the high-variance regime allow to identify the
 principal events happened in these countries. This information is closely
 related to nominal shocks and therefore, it explains the significant role
 of this component in these countries. 
Journal: Applied Economics 
Pages: 2713-2722 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600722349 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722349 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2713-2722




Template-Type: ReDIF-Article 1.0
Author-Name: A. Dupuy 
Author-X-Name-First: A. 
Author-X-Name-Last: Dupuy 
Title: Will the skill-premium in the Netherlands rise in the next decades? 
Abstract:
  While the skill-premium has been rising sharply in the US and the UK for
 20 years, the Dutch skill-premium decreased for much of that period and
 only started to rise in the early 90s. In this article, we investigate
 whether the Dutch skill-premium will rise in the next decades. To answer
 this question, we forecast the skill-premium using the Katz and Murphy
 (1992) and the Krusell et al. (2000) models. The Katz and Murphy model
 (KM) explains demand shifts by skill-biased technological change in
 unobservable variables captured by a time trend. In contrast, the Krusell
 et al. model (KORV) explains demand shifts by (observable) changes in the
 capital stock under a capital-skill complementarity technology. The
 results show that while the KM model predicts that the skill-premium will
 have increased by 30% in 2020, based on realistic predictions of the stock
 of capital, the KORV model predicts that the skill-premium will remain
 between -5 and +5% of its 1996 level. 
Journal: Applied Economics 
Pages: 2723-2731 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749441 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749441 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2723-2731




Template-Type: ReDIF-Article 1.0
Author-Name: Kyongwook Choi 
Author-X-Name-First: Kyongwook 
Author-X-Name-Last: Choi 
Author-Name: Brandon Dupont 
Author-X-Name-First: Brandon 
Author-X-Name-Last: Dupont 
Title: Revisiting structural change and market integration in late 19th century American capital markets 
Abstract:
  This article draws on a variety of time series tools to more deeply
 explore issues surrounding the emergence of a national capital market in
 the late 19th century. Our focus is on the timing of the emergence of a
 national capital market. Rather than relying on the absolute narrowing of
 regional interest rate differentials, which is a common approach in this
 literature, we use Gregory and Hansen cointegration tests, which allow us
 not only to test for cointegrating relations in the interest rate series
 but to identify unknown structural change dates as a byproduct. We also
 use dynamic conditional correlations to determine the dates at which
 regional interest rate correlations began increasing. Our results suggest
 that structural changes are centred around the year 1900, which is
 consistent with Sylla's argument that the lowering of capital requirements
 by the Gold Standard Act of 1900 increased bank entry and competition and
 facilitated regional capital market convergence. 
Journal: Applied Economics 
Pages: 2733-2741 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749508 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749508 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2733-2741




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Mehay 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Mehay 
Author-Name: Natalie Webb 
Author-X-Name-First: Natalie 
Author-X-Name-Last: Webb 
Title: Workplace drug prevention programs: does zero tolerance work? 
Abstract:
  Current drug policy in the US military mandates frequent random drug
 testing of service members and dismissal of those who test positive for
 illegal drugs. This article analyses the economic costs and benefits of
 this zero tolerance policy as applied in the US Navy. Program effects
 consist of the actual number of detected users and the predicted number of
 deterred potential users. Productivity losses imposed by drug users are
 based on reported annual workdays lost due to drug use in the Navy. The
 productivity losses avoided by deterring and detecting users constitute
 program benefits. Program costs include the cost of replacing service
 members who are dismissed under the zero tolerance policy. Net benefits
 are sensitive to three key parameters - the deterrence effect, replacement
 cost, and productivity losses due to drug use. The results show that net
 benefits are negative for most plausible values of the key parameters. 
Journal: Applied Economics 
Pages: 2743-2751 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749532 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749532 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2743-2751




Template-Type: ReDIF-Article 1.0
Author-Name: George Halkos 
Author-X-Name-First: George 
Author-X-Name-Last: Halkos 
Author-Name: Ilias Kevork 
Author-X-Name-First: Ilias 
Author-X-Name-Last: Kevork 
Title: Testing for a unit root under the alternative hypothesis of ARIMA (0, 2, 1) 
Abstract:
  Showing a dual relationship between ARIMA (0, 2, 1) with parameter
 &#x3b8; = -1 and the random walk, a new alternative hypothesis in the form
 of ARIMA (0, 2, 1) is established in this article for evaluating unit root
 tests. The power of four methods of testing for a unit root is
 investigated under the new alternative, using Monte Carlo simulations. The
 first method testing &#x3b8; = -1 in second differences and using a new
 set of critical values suggested by the two authors in finite samples, is
 the most appropriate from the integration order point of view. The other
 three methods refer to tests based on t and &#x3c6; statistics introduced
 by Dickey and Fuller, as well as, the nonparametric Phillips-Perron test.
 Additionally, for cases where for the first method a low power is met, we
 studied the validity of prediction interval for a future value of ARIMA
 (0, 2, 1) with &#x3b8; close but greater of -1, using the prediction
 equation and the error variance of the random walk. Keeping the
 forecasting horizon short, the coverage of the interval ranged at expected
 levels, but its average half-length ranged up to four times more than its
 true value. 
Journal: Applied Economics 
Pages: 2753-2767 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600735416 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735416 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2753-2767




Template-Type: ReDIF-Article 1.0
Author-Name: Jaeun Shin 
Author-X-Name-First: Jaeun 
Author-X-Name-Last: Shin 
Author-Name: S. Moon 
Author-X-Name-First: S. 
Author-X-Name-Last: Moon 
Title: HMO plans, self-selection and utilization of health care services 
Abstract:
  This study examines the effect of health maintenance organizations (HMOs)
 on the use of health care services among the privately insured, nonelderly
 population. To consider jointly the possible self-selection bias and high
 frequency of zero observations in the applied utilization measures, we
 accommodate the endogeneity of health plan choice decisions in the
 censored regression model. Using data from the 2000 Medical Expenditure
 Panel Survey, we find strong evidence for favourable self-selection into
 HMO plans. Health maintenance organization enrollment is found to
 encourage greater use of office-based and hospital outpatient services.
 Overall satisfaction with the quality of care among HMO members is
 relatively low compared to that among nonHMO members. These findings
 suggest that more effort is needed to develop management strategies in
 HMOs in order to contain the moral hazard in utilization and assure the
 quality of service provided within the network of HMO providers. 
Journal: Applied Economics 
Pages: 2769-2784 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749391 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749391 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2769-2784




Template-Type: ReDIF-Article 1.0
Author-Name: Yahui Peng 
Author-X-Name-First: Yahui 
Author-X-Name-Last: Peng 
Author-Name: Kehluh Wang 
Author-X-Name-First: Kehluh 
Author-X-Name-Last: Wang 
Title: IPO underpricing and flotation methods in Taiwan - a stochastic frontier approach 
Abstract:
  Adopting stochastic frontier analysis, this article studies the pricing
 model and underpricing phenomenon of the initial public offerings (IPOs)
 in Taiwan and further elucidates the potential impact of offering
 mechanisms on underpricing. The sampling period is from 1996 to 2003, in
 which 647 IPOs are selected. Empirical results suggest that issuing firms
 with greater earning potentials, less risk or less asymmetric information
 have lower underpricing. Furthermore, the variables included to explain
 underpricing are mostly significant, especially the proxy variable for
 flotation method. Observed mean IPO underpricing is 20.59% in the sample
 period, compared to 17.12% for the subgroup using the auction method. This
 statistically significant difference implies that the introduction of the
 auction method can help reduce IPO underpricing. 
Journal: Applied Economics 
Pages: 2785-2796 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749417 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749417 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2785-2796




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu 
Author-X-Name-First: Chun-Chu 
Author-X-Name-Last: Liu 
Author-Name: Hsiu-Chuan Lin 
Author-X-Name-First: Hsiu-Chuan 
Author-X-Name-Last: Lin 
Title: Applying data envelopment analysis in analysing the organizational change for credit departments of farmers' associations in Taiwan 
Abstract:
  This study attempts to apply the data envelopment analysis to approach
 the performance of the credit departments of farmers' associations in
 Taiwan. Based on the structure of the data envelopment analysis approach,
 this study measures the relative efficiency for credit departments of
 farmers' associations in Taiwan via resource redistribution. When the
 amount of resource is fixed, it can be distributed to each unit within an
 organization in a better way. It is intended to find the possible
 improvements for those inefficient credit departments of farmers'
 associations. The empirical results show that the overall efficiency
 scores of the teams indicate is not best and scale for credit departments
 of farmers' associations in Taiwan is relatively small. It implies that
 the reorganization of the credit departments of farmers' associations may
 be appropriate if more efficient organization is to be pursued. Finally
 the reorganization of the credit departments of farmers' associations are
 studies, evidences show the results are really be improved and acceptable. 
Journal: Applied Economics 
Pages: 2797-2805 
Issue: 21 
Volume: 39 
Year: 2007 
X-DOI: 10.1080/00036840600749425 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749425 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2797-2805




Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel 
Author-X-Name-First: D. A. 
Author-X-Name-Last: Peel 
Title: Introduction: economics of betting markets 
Abstract:
Journal: Applied Economics 
Pages: 1-3 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701728773 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701728773 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:1-3




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Cain 
Author-X-Name-First: Michael 
Author-X-Name-Last: Cain 
Author-Name: David Law 
Author-X-Name-First: David 
Author-X-Name-Last: Law 
Author-Name: David Peel 
Author-X-Name-First: David 
Author-X-Name-Last: Peel 
Title: Bounded cumulative prospect theory: some implications for gambling outcomes 
Abstract:
  Standard parametric specifications of Cumulative Prospect theory (CPT)
 can explain why agents bet on longshots at actuarially unfair odds.
 However, the standard specification of CPT cannot explain why people might
 bet on more favoured outcomes, where by construction the greatest volume
 of money is bet. This article outlines a parametric specification than can
 consistently explain gambling over all outcomes. In particular we assume
 that the value function is bounded from above and below and that the
 degree of loss aversion experienced by the agent is smaller for
 small-stake gambles (as a proportion of wealth) than usually assumed in
 CPT. There are a number of new implications of this specification.
 Boundedness of the value function in CPT implies that the indifference
 curve between expected-return and win-probability for a given stake will
 typically exhibit both an asymptote (implying rejection of an infinite
 gain bet) and a minimum, as the shape of the value function dominates the
 probability weighting function. Also the high probability section of the
 indifference curve will exhibit a maximum. 
Journal: Applied Economics 
Pages: 5-15 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701728765 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701728765 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:5-15




Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel 
Author-X-Name-First: D. A. 
Author-X-Name-Last: Peel 
Author-Name: Jie Zhang 
Author-X-Name-First: Jie 
Author-X-Name-Last: Zhang 
Author-Name: D. Law 
Author-X-Name-First: D. 
Author-X-Name-Last: Law 
Title: The Markowitz model of utility supplemented with a small degree of probability distortion as an explanation of outcomes of Allais experiments over large and small payoffs and gambling on unlikely outcomes 
Abstract:
  We show that in principal only a small degree of probability distortion
 is necessary for agents to exhibit the Allais paradox. We also show that
 the choices observed in the Allais experiments employing small real
 payoffs cannot be explained by Cumulative Prospect Theory without the
 assumption of low degrees of probability distortion that rule out gambling
 at unfair odds on all but the most extreme longshots in CPT. Given these
 points we show that the Markowitz model of utility supplemented by a small
 degree of probability distortion can explain the majority choices involved
 Allais experiments and other experiments as well as gambling at
 actuarially unfair odds. 
Journal: Applied Economics 
Pages: 17-26 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701728781 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701728781 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:17-26




Template-Type: ReDIF-Article 1.0
Author-Name: N. Bhattacharya 
Author-X-Name-First: N. 
Author-X-Name-Last: Bhattacharya 
Author-Name: T. A. Garrett 
Author-X-Name-First: T. A. 
Author-X-Name-Last: Garrett 
Title: Why people choose negative expected return assets - an empirical examination of a utility theoretic explanation 
Abstract:
  Using a theoretical extension of the Friedman and Savage (1948) utility
 function developed in Bhattacharyya (2003), we predict that for assets
 with negative expected returns, such as state lottery games, expected
 return will be a declining and convex function of skewness. That is,
 lottery players trade-off expected return for skewness. Using two samples
 of lottery game data, we find that our theoretical conclusions are
 supported by the empirical results. The findings obtained here not only
 contribute to the literature on why individuals may participate in unfair
 gambles, the framework could be extended to an analysis of the stock
 market where higher returns cannot be solely explained by risk (variance). 
Journal: Applied Economics 
Pages: 27-34 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701335587 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335587 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:27-34




Template-Type: ReDIF-Article 1.0
Author-Name: Kathryn Combs 
Author-X-Name-First: Kathryn 
Author-X-Name-Last: Combs 
Author-Name: Jaebeom Kim 
Author-X-Name-First: Jaebeom 
Author-X-Name-Last: Kim 
Author-Name: John Spry 
Author-X-Name-First: John 
Author-X-Name-Last: Spry 
Title: The relative regressivity of seven lottery games 
Abstract:
  We study the implicit tax incidence of raising state revenue through a
 monopoly state-run lottery using a new dataset on individual Minnesota
 lottery game sales by zip code. We use the bootstrap to compute SEs and
 construct confidence intervals for Suits Indices of seven lottery
 products. We conclude that the implicit tax on each product is regressive,
 and find statistically significant differences in regressivity between
 some products. Minnesota's newly introduced G3 instant scratch product,
 printed at time and place of purchase, is also the most regressive lottery
 game. 
Journal: Applied Economics 
Pages: 35-39 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/13504850701439327 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/13504850701439327 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:35-39




Template-Type: ReDIF-Article 1.0
Author-Name: Cary Deck 
Author-X-Name-First: Cary 
Author-X-Name-Last: Deck 
Author-Name: Jungmin Lee 
Author-X-Name-First: Jungmin 
Author-X-Name-Last: Lee 
Author-Name: Javier Reyes 
Author-X-Name-First: Javier 
Author-X-Name-Last: Reyes 
Title: Risk attitudes in large stake gambles: evidence from a game show 
Abstract:
  This article estimates the degree of risk aversion of contestants
 appearing on 'Vas o No Vas', the Mexican version of 'Deal or No Deal'. We
 consider both dynamic agents, who fully backward induct and myopic agents
 that only look forward one period. Further, we vary the level of
 forecasting sophistication by the agents. We find substantial evidence of
 risk aversion, the degree of which is more modest than what is typically
 reported in the literature. 
Journal: Applied Economics 
Pages: 41-52 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701235704 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701235704 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:41-52




Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Farrell 
Author-X-Name-First: Lisa 
Author-X-Name-Last: Farrell 
Author-Name: David Forrest 
Author-X-Name-First: David 
Author-X-Name-Last: Forrest 
Title: Measuring displacement effects across gaming products: a study of Australian gambling markets 
Abstract:
  This article seeks to establish the extent of displacement effects across
 gaming products. This is a particularly difficult question to address with
 precision. To date, many studies have looked at policy changes such as the
 introduction of a new product into the market to assess the severity of
 displacement effects. However, simple before and after comparisons are
 invalid. One needs to know what the appropriate counterfactual would have
 been in the absence of the policy change - which by its very nature is
 unobservable. The alternative is to look at identical populations exposed
 to different regimes. Australia represents such a natural experiment. In
 Australia, Betting and Gaming legislation is determined at the state
 level, giving rise to some interesting differentials across states within
 a single country. This article estimates a state level (fixed effects)
 panel data model, exploiting the intra-state differences in the portfolio
 of gaming products available, to estimate the extent of displacement
 effects across the gaming sector. The results are particularly relevant to
 the current UK policy debate, which is focused on the potential impact on
 the existing market following a forthcoming, radical deregulation of the
 industry (with further liberalization proposed). 
Journal: Applied Economics 
Pages: 53-62 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701591379 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701591379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:53-62




Template-Type: ReDIF-Article 1.0
Author-Name: Hasret Benar 
Author-X-Name-First: Hasret 
Author-X-Name-Last: Benar 
Author-Name: Glenn Jenkins 
Author-X-Name-First: Glenn 
Author-X-Name-Last: Jenkins 
Title: The economics of casino taxation 
Abstract:
  In this article, a model of the costs of a casino is developed that
 focuses on the implications for economic welfare of different taxation
 schemes for casinos. The situation being considered is in a country where
 casinos cater exclusively to foreign tourists. The goal of the country is
 to determine the maximum amount of taxes that can be extracted from the
 activities of this sector under different systems of taxation. When the
 price of gambling is set by regulation above its competitive level, the
 economic losses created by excessive investment in the sector can be
 reduced by taxation. A turnover tax on the amount gambled can maximize
 both tax revenue and the economic welfare of the country. Due to
 administrative constraints, a number of countries rely on the taxation of
 the casinos' fixed assets or a combination of a turnover tax and a tax on
 fixed costs. The model is applied to the situation in North Cyprus. The
 annual economic efficiency loss from its poorly designed tax policies on
 casino gambling is estimated to be about 0.5% of GDP. 
Journal: Applied Economics 
Pages: 63-73 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749656 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749656 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:63-73




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Winter 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Winter 
Author-Name: Martin Kukuk 
Author-X-Name-First: Martin 
Author-X-Name-Last: Kukuk 
Title: Do horses like vodka and sponging? - On market manipulation and the favourite-longshot bias 
Abstract:
  One of the most striking empirical patterns of horse race betting markets
 is the favourite-longshot bias: Bets on favourites have dramatically
 higher expected returns than bets on longshots. The literature offers a
 couple of different, though not mutually exclusive, explanations based on
 risk preferences and probability perceptions. This article adds a new
 possible explanation: The favourite-longshot bias may be the rational
 answer of an honest audience to a simple, but highly lucrative cheating
 opportunity of insiders. We provide anecdotal evidence that the type of
 cheating we model here really takes place. What is more, by employing a
 large scale German data set we are able to demonstrate that the pattern of
 the favourite-longshot bias changes as the opportunity of cheating
 vanishes. The changes we observe are in accord with the cheating model we
 suggest. 
Journal: Applied Economics 
Pages: 75-87 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701731538 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701731538 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:75-87




Template-Type: ReDIF-Article 1.0
Author-Name: Marshall Gramm 
Author-X-Name-First: Marshall 
Author-X-Name-Last: Gramm 
Author-Name: C. Nicholas McKinney 
Author-X-Name-First: C. Nicholas 
Author-X-Name-Last: McKinney 
Author-Name: Douglas Owens 
Author-X-Name-First: Douglas 
Author-X-Name-Last: Owens 
Title: The efficiency of exotic wagers in racetrack betting 
Abstract:
  Many empirical studies have found the existence of a bias where the
 general public overestimates low probability events. This phenomenon has
 been termed the favourite-longshot bias and has been much studied in
 betting markets. This article looks at efficiency in multihorse 'exotic'
 wagers using 11 194 races run at 35 U.S. racetracks. We find the standard
 favourite-longshot in exacta wagers (involves picking the first two
 finishers in order). Results are unclear for trifecta wagers (picking the
 first three finishers in order). 
Journal: Applied Economics 
Pages: 89-97 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701466085 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701466085 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:89-97




Template-Type: ReDIF-Article 1.0
Author-Name: I. Graham 
Author-X-Name-First: I. 
Author-X-Name-Last: Graham 
Author-Name: H. Stott 
Author-X-Name-First: H. 
Author-X-Name-Last: Stott 
Title: Predicting bookmaker odds and efficiency for UK football 
Abstract:
  The efficiency of gambling markets has frequently been questioned. In
 order to investigate the rationality of bookmaker odds, we use an ordered
 probit model to generate predictions for English football matches and
 compare these predictions with the odds of UK bookmaker William Hill.
 Further, we develop a model that predicts bookmaker odds. Combining a
 predictive model based on results and a bookmaker model based on previous
 quoted odds allows us to compare directly William Hill opinion of various
 teams with the team ratings generated by the predictive model. We also
 compare the objective value of individual home advantage and distance
 travelled with the value attributed to these factors by bookmakers. We
 show that there are systematic biases in bookmaker odds, and that these
 biases cannot be explained by William Hill odds omitting valuable, or
 excluding extraneous, information. 
Journal: Applied Economics 
Pages: 99-109 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701728799 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701728799 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:99-109




Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Vlastakis 
Author-X-Name-First: Nikolaos 
Author-X-Name-Last: Vlastakis 
Author-Name: George Dotsis 
Author-X-Name-First: George 
Author-X-Name-Last: Dotsis 
Author-Name: Raphael Markellos 
Author-X-Name-First: Raphael 
Author-X-Name-Last: Markellos 
Title: Nonlinear modelling of European football scores using support vector machines 
Abstract:
  This article explores the linear and nonlinear forecastability of
 European football match scores using IX2 and Asian Handicap odds data from
 the English Premier league. To this end, we compare the performance of a
 Poisson count regression to that of a nonparametric Support Vector Machine
 (SVM) model. Our descriptive analysis of the odds and match outcomes
 indicates that these variables are strongly interrelated in a nonlinear
 fashion. An interesting finding is that the size of the Asian Handicap
 appears to be a significant predictor of both home and away team scores.
 The modelling results show that while the SVM is only marginally superior
 on the basis of statistical criteria, it manages to produce out-of-sample
 forecasts with much higher economic significance. 
Journal: Applied Economics 
Pages: 111-118 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701731546 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701731546 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:111-118




Template-Type: ReDIF-Article 1.0
Author-Name: David Forrest 
Author-X-Name-First: David 
Author-X-Name-Last: Forrest 
Author-Name: Robert Simmons 
Author-X-Name-First: Robert 
Author-X-Name-Last: Simmons 
Title: Sentiment in the betting market on Spanish football 
Abstract:
  We employ a sample of over 3000 bets available on matches from the top
 tier of Spanish football in an examination of the efficiency of betting
 odds offered in the on-line betting market. Odds appear to be influenced
 by the relative number of fans of each club in a match, with supporters of
 the more popular team offered more favourable terms on their wagers. We
 report similar findings for a sample of games from Scotland. The results
 contrast with studies of American sports betting markets but are
 consistent with competitive behaviour by profit maximizing bookmakers in a
 market where bettors can choose between several operators. 
Journal: Applied Economics 
Pages: 119-126 
Issue: 1 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701522895 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:119-126




Template-Type: ReDIF-Article 1.0
Author-Name: Bob Barnes 
Author-X-Name-First: Bob 
Author-X-Name-Last: Barnes 
Title: A Cointegrating approach to budget deficits and long-term interest rates 
Abstract:
  A cointegrating approach is undertaken in this study to determine if
 there is a long-run equilibrium relationship between budget deficits and
 long-term interest rates for the United States and nine European
 countries. The cointegration approach consists of conducting cointegration
 tests and then testing several hypothesized values for the deficit and
 price expectations variables. The cointegration results suggest the
 existence of several significant cointegrating vectors for each of the ten
 countries, which would seem to appeal to the view of budget deficits
 having a positive impact on long-term interest rates. The hypothesized
 values for the deficit and price expectations variables are found to be
 too strict since the hypotheses are rejected in every case but one. 
Journal: Applied Economics 
Pages: 127-133 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749722 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749722 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:127-133




Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda 
Author-X-Name-First: Kosei 
Author-X-Name-Last: Fukuda 
Title: Flexible trend-cycle decomposition of nonstationary multivariate time series 
Abstract:
  A flexible method for the trend-cycle decomposition of nonstationary
 multivariate time series is proposed. In this method, each time series is
 decomposed into a common or individual stochastic trend, a common or
 individual stationary cycle, and observation noise components. The
 combination of variables for a common trend or for a common cycle and the
 introduction of economic-theory-based trend are flexible and determined
 using the Akaike information criterion. Simulation results suggest that
 the proposed method works well, and two examples are shown to illustrate
 the efficacy of the proposed method, particularly by investigating the
 predictive accuracy. 
Journal: Applied Economics 
Pages: 135-147 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749573 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749573 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:135-147




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Van der Meer 
Author-X-Name-First: Peter 
Author-X-Name-Last: Van der Meer 
Title: Is the gender wage gap declining in the Netherlands? 
Abstract:
  In this paper I try to answer the question whether the gender wage gap in
 the Netherlands is declining. I posed this question because on several
 other indicators labour market differences between men and women in the
 Netherlands declined or disappeared altogether. First of all the labour
 market participation of women has increased and women on the labour market
 are no longer a small minority. Second, the difference in productive
 characteristics between men and women is disappearing. Third, both product
 and labour markets have become increasingly competitive, due to changes in
 regulation like anti-trust laws, which should have an effect on the gender
 wage gap. Contrary to these expectations I did not find a declining gender
 wage gap. The data in Dutch Institute for Labour Studies (OSA) labour
 supply panel show a steady gender gap of approximately nineteen per cent.
 At most twenty-five to thirty per cent of the gap can be explained by
 productivity differences. The largest part of the gender wage gap is due
 to 'price' differences. Both cross-section and panel analyses give the
 same answer. 
Journal: Applied Economics 
Pages: 149-160 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749557 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749557 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:149-160




Template-Type: ReDIF-Article 1.0
Author-Name: Titus Awokuse 
Author-X-Name-First: Titus 
Author-X-Name-Last: Awokuse 
Title: Trade openness and economic growth: is growth export-led or import-led? 
Abstract:
  Most previous investigations have only focused on the effect of export
 expansion on economic growth while ignoring the potential growth-enhancing
 contribution of imports. This article re-examines the relationship between
 trade and economic growth in Argentina, Colombia, and Peru with emphasis
 on both the role of exports and imports. Granger causality tests and
 impulse response functions were used to examine whether growth in trade
 stimulate economic growth (or vice versa). The results suggest that the
 singular focus of past studies on exports as the engine of growth may be
 misleading. Although there is some empirical evidence supporting
 export-led growth, the empirical support for import-led growth hypothesis
 is relatively stronger. In some cases, there is also evidence for reverse
 causality from gross domestic product growth to exports and imports. 
Journal: Applied Economics 
Pages: 161-173 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749490 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749490 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:161-173




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Title: The long and short of money: short-run dynamics within a structural model 
Abstract:
  Empirical examinations into aggregate money demand functions, generally,
 incorporate a monetary aggregate as the dependent variable. While this
 custom may be inefficient, it does not create any new difficulties for
 estimating the demand function's long-run parameters, as money supply
 would equal money demand. The short-run estimates, however, are not as
 fortunate. As the monetary aggregate is a measure of supply and not
 demand, one needs to tease out the short-run responses associated with
 money demand changes with those which are associated with monetary supply
 shocks. The present article, therefore, proposes a more complete
 representation of monetary sector behaviour and in doing so, finds
 significant support for the so-called buffer stock money demand models. 
Journal: Applied Economics 
Pages: 175-192 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749805 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:175-192




Template-Type: ReDIF-Article 1.0
Author-Name: C. Moons 
Author-X-Name-First: C. 
Author-X-Name-Last: Moons 
Author-Name: A. Van Poeck 
Author-X-Name-First: A. 
Author-X-Name-Last: Van Poeck 
Title: Does one size fit all? A Taylor-rule based analysis of monetary policy for current and future EMU members 
Abstract:
  This article uses the Taylor rule to examine the appropriateness of
 European Central Bank (ECB) interest rate policy for the initial European
 Monetary Union (EMU) members and the 10 new EMU member states some of whom
 are expected to join the Eurozone in 2006-2007. Specifically it addresses
 three questions. (1) Are there differences between the interest rate
 aggregated from the Taylor interest rates of individual member states in
 the euro area and the interest rate set by the ECB? (2) For which
 countries do the desired interest rates according to the original Taylor
 rule and the interest rate of the euro area differ most and in which
 respect? (3) The last question is whether the interest rate gaps change
 over time. We find that the ECB's policy does not fit individual EMU
 members equally well and this result is unlikely to be changed with the
 addition of the 10 new members, which will have only a marginal effect on
 the ECB interest rate stance. 
Journal: Applied Economics 
Pages: 193-199 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749763 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749763 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:193-199




Template-Type: ReDIF-Article 1.0
Author-Name: Ai-Chi Hsu 
Author-X-Name-First: Ai-Chi 
Author-X-Name-Last: Hsu 
Author-Name: Shu-Chin Liu 
Author-X-Name-First: Shu-Chin 
Author-X-Name-Last: Liu 
Title: The hurdle models choice between truncated normal and lognormal 
Abstract:
  The purpose of this article is to compare and evaluate statistical models
 for corner solution applications of censored regression. Generally, a
 double-hurdle model is better than one-part model. Cragg (1971) suggests a
 double-hurdle model, the truncated normal model, is widely used. However,
 the lognormal model is easy to have the economic interpretation than the
 Cragg's model. We use the simulation and empirical data to test both the
 models. The results show that the lognormal model is usually more robust
 than the truncated normal model. While the lognormal model has valuable
 application in censored data, its potential usefulness should not be
 overlooked. 
Journal: Applied Economics 
Pages: 201-207 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749581 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749581 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:201-207




Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Hsiu Laih 
Author-X-Name-First: Chen-Hsiu 
Author-X-Name-Last: Laih 
Author-Name: Kuan-Yu Chen 
Author-X-Name-First: Kuan-Yu 
Author-X-Name-Last: Chen 
Title: Economics on the optimal n-step toll scheme for a queuing port 
Abstract:
  This article establishes a series of the optimal n-step toll schemes
 (where n = 1, 2, 3, &#x2026;) which are levied to container ships for a
 queuing port. Container ships' arrival times at the port will be
 rationally dispersed after pricing the optimal n-step toll schemes.
 Consequently, the queuing time at the anchorage to all container ships
 will be rationally decreased. This article also shows the regularities in
 arrival time values, equilibrium values of queuing and operating costs,
 and decisions of arrival time adjustment under the optimal n-step toll
 schemes. All of these are important information if the port queuing
 pricing is planned to put into practice by the authorities. 
Journal: Applied Economics 
Pages: 209-228 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749870 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749870 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:209-228




Template-Type: ReDIF-Article 1.0
Author-Name: Yoon-Jun Lee 
Author-X-Name-First: Yoon-Jun 
Author-X-Name-Last: Lee 
Author-Name: Jeong-Dong Lee 
Author-X-Name-First: Jeong-Dong 
Author-X-Name-Last: Lee 
Title: Technology strategy for enhancing the public-to-private technology transfer: evidence from the duration of patent 
Abstract:
  Patents are typically characterized as assets of great values.
 Nevertheless, there are many patents that are actually never used. In this
 article, we claim that there is a relationship between the duration of
 patents and the characteristics of the underlying invention. From the
 viewpoint of Public Research Institutes, the duration of patents may be a
 proxy of probability of technology transfer because the long lived patents
 have higher value and more chances to be transferred. We characterize the
 patents along different dimensions captured by the renewal and application
 data, i.e. collaboration, scope, competitiveness and attractiveness. The
 results of hazard rate duration analysis tell us that long lived patents
 are characterized by being more focused, having more competitiveness, and
 being more collaborative. In addition, it is analysed that patents in
 chemical industry expire faster than those in electrical/electronic
 industry. Though this fact is against the general intuition, it may be
 reasonable from a viewpoint of technology transfer. 
Journal: Applied Economics 
Pages: 229-240 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749854 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749854 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:229-240




Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Gil-Pareja 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Gil-Pareja 
Author-Name: Simon Sosvilla-Rivero 
Author-X-Name-First: Simon 
Author-X-Name-Last: Sosvilla-Rivero 
Title: Price convergence in the European car market 
Abstract:
  This article examines price convergence in the European Union (EU) car
 market over the period 1995 to 2005. We find that there is a clear
 evidence of price convergence among the EU15 countries, but not before
 1999. Moreover, countries of the Economic and Monetary Union (EMU) started
 convergence previously to the EU15 as a whole. Finally, exchange rate
 changes have significantly contributed to price dispersion over time
 across countries. The results provide significant evidence that trade
 liberalization and the EMU have enhanced the process of regional
 integration in the European automobile industry, even though there is room
 for further measures to promote integration. 
Journal: Applied Economics 
Pages: 241-250 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749847 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749847 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:241-250




Template-Type: ReDIF-Article 1.0
Author-Name: HuiChen Chiang 
Author-X-Name-First: HuiChen 
Author-X-Name-Last: Chiang 
Title: Financial intermediary's choice of borrowing 
Abstract:
  This research investigates several dynamic stochastic models of a bank's
 management problem of the term structures of its assets and liabilities. A
 bank can either eliminate most of its interest risk with appropriate
 options, or it can utilize its expertise in its core business and seek
 extraordinary profits. This research concerns a bank with the latter goal.
 In this model, the bank seeks to maximize the expected present value of
 dividend issued subject to the Federal Reserve's regulatory constraint and
 liquidity constraint. With this model, we find that if the available
 deposits are not too high and the level of liquid assets is high enough,
 then it is optimal for a bank to accept all of the available deposits.
 However, if the level of liquid assets is too low, then a bank should not
 issue a dividend or to accept any deposits. The properties are still valid
 even if the bank is not risk neutral. 
Journal: Applied Economics 
Pages: 251-260 
Issue: 2 
Volume: 40 
Year: 2007 
X-DOI: 10.1080/00036840600749706 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749706 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:251-260




Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Menkhoff 
Author-X-Name-First: Lukas 
Author-X-Name-Last: Menkhoff 
Author-Name: Rafael Rebitzky 
Author-X-Name-First: Rafael 
Author-X-Name-Last: Rebitzky 
Author-Name: Michael Schroder 
Author-X-Name-First: Michael 
Author-X-Name-Last: Schroder 
Title: Do dollar forecasters believe too much in PPP? 
Abstract:
  This article extends earlier studies on exchange-rate expectations'
 formation by using new data and adding information about forecasters'
 reliance on fundamental analysis for the first time. We replicate the
 conventional result of nonrational expectations. Moreover, biases in
 expectations are identified as professionals significantly believe too
 much in mean reversion, mean being represented by purchasing power parity
 (PPP). When respondents are grouped on their reliance to fundamental
 analysis, fundamentalists reveal an even stronger bias. Those, who rely
 the least on fundamentals - preferring technical analysis instead - show a
 significantly smaller bias towards PPP in lieu of expecting too much trend
 extrapolation. Biased beliefs will grow stronger when the US Dollar is
 further away from PPP. Finally, the accuracy of the expectations is poor
 for both groups, however, we find directional forecasting ability. 
Journal: Applied Economics 
Pages: 261-270 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500428153 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428153 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:261-270




Template-Type: ReDIF-Article 1.0
Author-Name: I. -H. Cheng 
Author-X-Name-First: I. -H. 
Author-X-Name-Last: Cheng 
Author-Name: Y. -Y. Tsai 
Author-X-Name-First: Y. -Y. 
Author-X-Name-Last: Tsai 
Title: Estimating the staged effects of regional economic integration on trade volumes 
Abstract:
  This article compares various specifications of the gravity model of
 trade, which are commonly used in the literature. It shows that most of
 them can be regarded as nested versions of a general specification in
 which the heterogeneity of bilateral country-pair fixed effects is
 accounted for. This article constructs a modified gravity model in which
 both the conventional gravity variables and price-effect variable are
 included. It intends to discuss the trend of the effects of the
 enlargement and enhancement of regional blocs, particularly taking account
 of the staged effects to investigate the effects of regional economic
 agreements on trade volumes. The differences of the effects across
 regional blocs are investigated. 
Journal: Applied Economics 
Pages: 383-393 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600606252 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606252 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:383-393




Template-Type: ReDIF-Article 1.0
Author-Name: Murali Adhikari 
Author-X-Name-First: Murali 
Author-X-Name-Last: Adhikari 
Author-Name: Krishna Paudel 
Author-X-Name-First: Krishna 
Author-X-Name-Last: Paudel 
Author-Name: Jack Houston 
Author-X-Name-First: Jack 
Author-X-Name-Last: Houston 
Author-Name: James Bukenya 
Author-X-Name-First: James 
Author-X-Name-Last: Bukenya 
Title: Assessing the impacts of stochastic trend in crop acreage supply response model 
Abstract:
  This paper demonstrates the need to revisit the way a technical change
 has been incorporated in a crop acreage supply response model. Three
 different versions of technological change were introduced and compared:
 no trend, deterministic trend, and stochastic trend. The results confirm
 the need to treat a technology variable as a stochastic trend for better
 results in crop acreage supply response model specifications. 
Journal: Applied Economics 
Pages: 295-302 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500461881 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461881 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:295-302




Template-Type: ReDIF-Article 1.0
Author-Name: Inung Jung 
Author-X-Name-First: Inung 
Author-X-Name-Last: Jung 
Author-Name: Philip Gayle 
Author-X-Name-First: Philip 
Author-X-Name-Last: Gayle 
Author-Name: Dale Lehman 
Author-X-Name-First: Dale 
Author-X-Name-Last: Lehman 
Title: Competition and investment in telecommunications 
Abstract:
  This study examines the relationship between competition and investment
 by Incumbert Local Exchange Carriers (ILECs) in US telecommunications
 markets. A panel data model and a dynamic panel data model that have not
 been used in previous studies are applied in this analysis. Results of the
 panel data model suggest that investment by ILECs is positively related to
 the market share of Competitive Local Exchange Carriers (CLECs), and
 negatively to the absolute number of CLECs. However, once the persistence
 in ILECs' investment behaviour is controlled for using the dynamic model,
 our measures of the existing competition from CLECs, at best, have a weak
 effect on ILECs' investment. Therefore, while strengthening competition in
 the telecom sector may be key to restoring telecom investment, it is
 uncertain that competition spurred by the mandatory sharing policy in this
 sector stimulates ILECs' incentives to invest in new infrastructure. 
Journal: Applied Economics 
Pages: 303-313 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600592882 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592882 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:303-313




Template-Type: ReDIF-Article 1.0
Author-Name: Ben Groom 
Author-X-Name-First: Ben 
Author-X-Name-Last: Groom 
Author-Name: Phoebe Koundouri 
Author-X-Name-First: Phoebe 
Author-X-Name-Last: Koundouri 
Author-Name: Celine Nauges 
Author-X-Name-First: Celine 
Author-X-Name-Last: Nauges 
Author-Name: Alban Thomas 
Author-X-Name-First: Alban 
Author-X-Name-Last: Thomas 
Title: The story of the moment: risk averse cypriot farmers respond to drought management 
Abstract:
  This article illustrates the importance of estimating risk preferences
 when evaluating water policy. Using agricultural production data from the
 Kiti region of Cyprus we estimate farmers' risk preferences a la Antle
 (Journal of Business and Economic Statistics, 1, 192-201, 1983, American
 Journal of Agricultural Economics, 69, 509-22, 1987) and show sensitivity
 to higher order moments of profit, such as skewness. We show that farmers
 in the Kiti region are risk averse with risk premiums in the region of 20%
 of expected profit. We use these estimates to analyse the impact of a
 water quota from the perspective of three policy-makers who differ only in
 their understanding of farmers' risk preferences. We show in the case of
 Kiti that policy-makers who model risk preferences incorrectly, that is,
 either; (a) assume risk neutrality or; (b) ignore down-side risk, wrongly
 predict the magnitude and direction of input responses and therefore the
 magnitude of welfare changes. This highlights the importance of
 accommodating preferences for higher order moments of profit in the
 evaluation of water policy. 
Journal: Applied Economics 
Pages: 315-326 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600592916 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:315-326




Template-Type: ReDIF-Article 1.0
Author-Name: Marie-Estelle Binet 
Author-X-Name-First: Marie-Estelle 
Author-X-Name-Last: Binet 
Title: Optimal local taxation and French municipal tax distortions 
Abstract:
  This article presents both theoretical and empirical findings in the
 field of optimal local taxation i.e. neutral in locational decision. This
 topic should throw light on the question of tax policy and tax reform. We
 extend Wildasin's (1987) model, including mobile capital. In this way, we
 include his marginal cost of congestion taxation rule relating to mobile
 households (Proposition 1). This extension provides us with a new rule
 (Proposition 2): the optimal share-out of taxes among household residents
 and firms in municipalities. To illustrate these results, we discuss the
 French municipal tax system properties and we pick out its main
 distortions. 
Journal: Applied Economics 
Pages: 327-332 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500427874 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427874 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:327-332




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Hinrichs 
Author-X-Name-First: Jan 
Author-X-Name-Last: Hinrichs 
Author-Name: Oliver Musshoff 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Musshoff 
Author-Name: Martin Odening 
Author-X-Name-First: Martin 
Author-X-Name-Last: Odening 
Title: Economic hysteresis in hog production 
Abstract:
  German hog production only responds in a very limited way to price
 fluctuations in the pork market. The hog production concentrates on a few
 regions though it is not bound to special natural conditions such as soil
 quality. Furthermore, the volume of production does not vary over time.
 Relatively high market risks, sunk costs and the flexibility of the
 decision maker to defer investments characterize decision problems in hog
 production. Thus the real option approach is chosen to explain the inertia
 in production capacity. By the use of panel data of specialized hog farms
 from the German Farm Accountancy Data Network, an empirical investment
 model is estimated. Formally, the model has the structure of a generalized
 ordered probit model. This approach allows to test for economic hysteresis
 in the adjustment of hog production capacity. The results confirm that
 uncertainty and flexibility widen the optimal range of inaction. 
Journal: Applied Economics 
Pages: 333-340 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500447880 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447880 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:333-340




Template-Type: ReDIF-Article 1.0
Author-Name: William Miles 
Author-X-Name-First: William 
Author-X-Name-Last: Miles 
Title: Exchange rates, inflation and growth in small, open economies: a difference-in-differences approach 
Abstract:
  Financial crises in emerging markets have led many observers to recommend
 abandoning fixed exchange rates and adopting more flexible regimes.
 Moreover, some recent research suggests that the correct exchange rate
 regime may have a significant effect on inflation and even economic
 growth. The estimated effect found in such studies, however, likely
 suffers from an upward bias, as countries which choose a given exchange
 rate regime have other hard-to-measure policies and attributes which also
 affect economic performance. Utilizing a recent data set on actual, as
 opposed to official exchange rate regimes, this article employs the
 difference-in-differences method, currently popular in applied
 microeconomics, to a set of emerging markets that switched to more
 flexible currency policies. Results indicate that, contrary to previous
 studies, exchange rates themselves exert no significant impact on
 inflation or output. 
Journal: Applied Economics 
Pages: 341-348 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600639881 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600639881 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:341-348




Template-Type: ReDIF-Article 1.0
Author-Name: Vani Borooah 
Author-X-Name-First: Vani 
Author-X-Name-Last: Borooah 
Title: Bridging the gap between the measurement of poverty and of deprivation 
Abstract:
  One way of measuring the deprivation or poverty of persons is to use
 money based measures: a person is regarded as 'poor' if his/her income (or
 expenditure) falls below a poverty line value. Such an approach-usually
 termed 'poverty analysis'-has spawned a large literature embodying several
 sophisticated measures of poverty. The downside to this is that low income
 or expenditure may not be very good indicators of deprivation. Another
 way, usually termed 'deprivation analysis', is to define an index whose
 value, for each person, is the number (or proportion) of items, from a
 prescribed list, that he/she possesses: persons are then regarded as
 'deprived' if their index value is below some threshold value. This offers
 an alternative method of identifying deprived persons. The downside of
 deprivation analysis is that it measures deprivation exclusively in terms
 of the proportion of deprived persons in the total number of persons. The
 purpose of this paper is to bridge the gap between poverty and deprivation
 analysis by constructing a wider set of deprivation measures and showing,
 with data for Northern Ireland, how they might be applied. 
Journal: Applied Economics 
Pages: 349-356 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500426926 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426926 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:349-356




Template-Type: ReDIF-Article 1.0
Author-Name: Hyun Joung Jin 
Author-X-Name-First: Hyun Joung 
Author-X-Name-Last: Jin 
Author-Name: Jang-Chul Kim 
Author-X-Name-First: Jang-Chul 
Author-X-Name-Last: Kim 
Title: The effects of the BSE outbreak on the security values of US agribusiness and food processing firms 
Abstract:
  A case of Bovine Spongiform Encephalopathy (BSE) was found on December,
 2003 in the United States, which affected offshore and domestic demands
 for US beef. This study evaluates the effects of the BSE outbreak on the
 security values of the US agribusiness and food processing firms, using an
 event study. Empirical results indicate that the beef industry was
 significantly, negatively affected, but other meat industries benefited
 significantly. For the sectors not immediately involved with beef
 products, the effects were small or negligible. 
Journal: Applied Economics 
Pages: 357-372 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500461824 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461824 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:357-372




Template-Type: ReDIF-Article 1.0
Author-Name: Juthathip Jongwanich 
Author-X-Name-First: Juthathip 
Author-X-Name-Last: Jongwanich 
Title: Real exchange rate overvaluation and currency crisis: evidence from Thailand 
Abstract:
  This article examines real exchange rate (RER) misalignment in Thailand
 in the lead-up to the 1997-1998 currency crisis. The methodology involves
 estimating the long-run equilibrium RER based on the internal and external
 balance approach. RER misalignment is measured by comparing the actual RER
 with the estimated long-run equilibrium RER. The results suggest that
 there was a persistent RER overvaluation from 1991 up to the onset of the
 crisis in 1997. 'Too much' net short-term capital inflows and government
 expenditure expansion were the main contributory factors. After the
 massive depreciation of nominal exchange rate during the crisis, the RER
 seems to have gradually returned to its long-run equilibrium level. 
Journal: Applied Economics 
Pages: 373-382 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600570961 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600570961 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:373-382




Template-Type: ReDIF-Article 1.0
Author-Name: Min-Hsien Chiang 
Author-X-Name-First: Min-Hsien 
Author-X-Name-Last: Chiang 
Author-Name: Jo-Yu Wang 
Author-X-Name-First: Jo-Yu 
Author-X-Name-Last: Wang 
Title: Regime switching cointegration tests for the Asian stock index futures: evidence for MSCI Taiwan, Nikkei 225, Hong Kong Hang-Seng, and SGX Straits Times indices 
Abstract:
  This study applies a cointegration system that considers regime shifts in
 order to study the long-run relationship between the stock index and stock
 index futures markets. The MSCI Taiwan, Nikkei 225, Hong Kong Hang-Seng,
 and Singapore Exchange (SGX) Straits Times indices are examined. The
 empirical evidence shows that the cointegration system with regime shifts
 performs better than the usual cointegration system without considering
 regime shifts. 
Journal: Applied Economics 
Pages: 285-293 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500400251 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400251 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:285-293




Template-Type: ReDIF-Article 1.0
Author-Name: Luiz de Mello 
Author-X-Name-First: Luiz 
Author-X-Name-Last: de Mello 
Title: Estimating a fiscal reaction function: the case of debt sustainability in Brazil 
Abstract:
  This article reviews recent trends in fiscal performance in Brazil,
 estimates fiscal reaction functions for the consolidated public sector and
 different levels of government, and tests for the sustainability of the
 public debt dynamics. The empirical analysis, based on monthly data for
 the period 1995-2004, suggests that all levels of government react
 strongly to changes in indebtedness by adjusting their primary budget
 surplus targets. In addition, the central government appears to follow a
 spend-and-tax policy: changes in revenue are affected strongly by
 expenditure. About two-thirds of changes in primary spending are offset by
 higher revenue over the longer term. Institutions are also found to matter
 for fiscal sustainability. The responsiveness of the sub-national fiscal
 stance to indebtedness, as well as that of central government revenue to
 changes in primary spending, appears to have become stronger after 1998,
 when ceilings on indebtedness were introduced. 
Journal: Applied Economics 
Pages: 271-284 
Issue: 3 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500461873 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461873 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:271-284




Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani 
Author-X-Name-First: Elyas 
Author-X-Name-Last: Elyasiani 
Author-Name: Wanli Zhao 
Author-X-Name-First: Wanli 
Author-X-Name-Last: Zhao 
Title: International interdependence of an emerging market: the case of Iran 
Abstract:
  In this study the interdependence between Iran, its major trading
 partners and the United States is investigated using vector
 autoregression, generalized impulse response function and generalized
 variance decomposition techniques, introduced by Pesaran and Shin (1998).
 These techniques have an advantage over the commonly used impulse response
 and variance decomposition procedures in that they are insensitive to the
 ordering of the countries considered and hence, they produce more reliable
 results. The countries included in the sample, besides Iran are, France,
 Germany, Spain, Japan, South Korea, Brazil, Italy and the United States.
 The direction, strength, durability and stability of the effect of shocks
 in one market on the return patterns of the other markets are examined.
 The findings are 4-fold. First, the effect of past own market shocks on
 current behaviour is significant, beyond the first month, in most cases.
 Second, the own effect is stronger for the emerging markets such as Iran
 and Brazil, than the industrialized countries. Third, cross-country
 effects are short-lived for Brazil, Korea and Japan, but durable in the
 case of Iran, Germany, Spain and the United States. Fourth, in terms of
 breadth and strength, cross-country effects exhibit differential degrees
 of interdependence and asymmetry. The observed lack of integration between
 the Iranian market and the industrialized world makes it less vulnerable
 to the effect of shocks in the latter countries but it also deprives it
 from the flow of funds that could spur economic development and growth. 
Journal: Applied Economics 
Pages: 395-412 
Issue: 4 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600707027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707027 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:395-412




Template-Type: ReDIF-Article 1.0
Author-Name: Biing-Hwan Lin 
Author-X-Name-First: Biing-Hwan 
Author-X-Name-Last: Lin 
Author-Name: Steven Yen 
Author-X-Name-First: Steven 
Author-X-Name-Last: Yen 
Title: Consumer knowledge, food label use and grain consumption in the US 
Abstract:
  Responding to mounting evidence of the association between whole-grain
 consumption and a reduced risk of heart problems and other diseases, as
 well as an increased probability of body weight maintenance, the US
 Government has strongly encouraged its citizens to increase consumption of
 whole grains. However, compared against the 2005 Federal dietary
 recommendations, in 1994-1996 only 6% of Americans met the current
 recommended whole-grain consumption. To narrow this huge gap between
 actual and recommended consumption of whole grains, considerable changes
 in consumer behaviour will be needed. A demand system with two censored
 consumption equations and endogenous food label use and nutrition
 knowledge variables is estimated to investigate the factors that affect
 the consumption of whole and refined grains. Food label use and nutrition
 knowledge are found to play important roles in the consumption of refined-
 and whole-grain products, as are sociodemographic variables. The results
 can be used to help develop effective nutrition education messages and
 targeting strategies to promote consumption of whole grains in Americans'
 diets. 
Journal: Applied Economics 
Pages: 437-448 
Issue: 4 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600690298 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690298 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:437-448




Template-Type: ReDIF-Article 1.0
Author-Name: Yujing Shen 
Author-X-Name-First: Yujing 
Author-X-Name-Last: Shen 
Title: Choice of a regular physician and health care utilization: principal-agent issues for American veterans 
Abstract:
  Using US Veterans Health Administration (VA) data, we examined factors
 that affected patients choice of regular physicians and how the location
 of regular physicians influenced patients health care use. Appropriate
 estimation methods were applied to control for the endogeneity of patients
 choice of regular physicians. Our study showed that VA enrollees with
 regular VA physicians were more likely to use VA for inpatient care while
 those with regular nonVA physicians were more likely to use VA for special
 care such as pharmacy or mental health/substance abuse treatment, both of
 which can have very limited coverage in nonVA settings. 
Journal: Applied Economics 
Pages: 449-463 
Issue: 4 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600707134 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707134 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:449-463




Template-Type: ReDIF-Article 1.0
Author-Name: Tahir Abdi 
Author-X-Name-First: Tahir 
Author-X-Name-Last: Abdi 
Title: Machinery & equipment investment and growth: evidence from the Canadian manufacturing sector 
Abstract:
  New Growth Theory points to three potential influences on output and
 productivity growth-investment in human capital, R&D and investment in
 machinery and equipment (M&E). However, much of the literature focuses on
 human capital and R&D as sources of growth. Few efforts have been made to
 estimate the impact of M&E investment. This article presents empirical
 models that endeavour to fill this gap. Using panel data on 20 Canadian
 manufacturing industries (1961-1997) and time-series data (1961-2000) for
 the entire Canadian manufacturing sector, this article finds that the
 elasticities of output with respect to M&E capital stock and M&E
 investment are well above capital's share of national income suggested by
 a constant-returns-to-scale Cobb-Douglas production function. However, the
 coefficient on labour is near its income share. The results also suggest
 that M&E investment is not the only source of growth because the
 elasticity of output with respect to structures investment is also well
 above its income share, indicating the possible existence of
 complementarities between the two types of capital. 
Journal: Applied Economics 
Pages: 465-478 
Issue: 4 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600690215 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690215 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:465-478




Template-Type: ReDIF-Article 1.0
Author-Name: Minoas Koukouritakis 
Author-X-Name-First: Minoas 
Author-X-Name-Last: Koukouritakis 
Author-Name: Leo Michelis 
Author-X-Name-First: Leo 
Author-X-Name-Last: Michelis 
Title: The term structure of interest rates in the 12 newest EU countries 
Abstract:
  This article uses cointegration and common trends techniques to
 investigate empirically the expectations hypothesis of the term structure
 of interest rates for the 10 new EU countries, along with Bulgaria and
 Romania. The empirical results support the expectations theory of the term
 structure for all countries except Malta. By decomposing each term
 structure into its transitory and permanent components, we also analyse
 short-run and long-run interdependence among the term structures of
 interest rates in these countries. Our results indicate only weak linkages
 among the term structures of the 10 new EU countries and strong linkages
 between Bulgaria and Romania joined the EU in 2007. 
Journal: Applied Economics 
Pages: 479-490 
Issue: 4 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600690249 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690249 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:479-490




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chung Nieh 
Author-X-Name-First: Chien-Chung 
Author-X-Name-Last: Nieh 
Author-Name: Jeng-Bau Lin 
Author-X-Name-First: Jeng-Bau 
Author-X-Name-Last: Lin 
Author-Name: Yu-Shan Wang 
Author-X-Name-First: Yu-Shan 
Author-X-Name-Last: Wang 
Title: Regime-switching analysis for the impacts of exchange rate volatility on corporate values: a Taiwanese case 
Abstract:
  A second-moment, regime-switching model with not only a switching
 intercept and a switching slope, but also a switching error variance, is
 applied to examine the impacts of exchange rate volatility (ERV) on
 corporate values (CV) for the 10 industries investigated in Taiwan. Two
 different regimes categorized as strong-impact and weak-impact are
 identified. The dominant power varies from one industry to another. The
 Wald statistics for the null of equality are ambiguous, which show that if
 the Markov-switching (MS) model is plausible, then the ERV might not be
 one major factor, but another factor that could switch the CV of Taiwan's
 industries. For the model's volatility influence, the data of 8 out of 10
 industries are shown to fit a two-state model when the volatility is
 stimulated. A two-state, first-order MS model is appropriate for the
 'goodness of fit' analysis at the 10% significant level. 
Journal: Applied Economics 
Pages: 491-504 
Issue: 4 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600690066 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690066 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:491-504




Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Lynge Jensen 
Author-X-Name-First: Carsten Lynge 
Author-X-Name-Last: Jensen 
Author-Name: Bernt Aarset 
Author-X-Name-First: Bernt 
Author-X-Name-Last: Aarset 
Title: Explaining noncompliance in the Norwegian coastal cod fishery: an application of the multinomial logit 
Abstract:
  Establishing motive is central to the analysis of criminal behaviour.
 This article analyses the range of motives for noncompliant behaviour
 among coastal cod fishermen. A multinomial logit model is employed to
 analyse the reasons that underlie various motives. The four motives
 compared in this study are economic, technological and social and motives
 caused by bureaucracy and legitimacy problems. The economic motive is
 found to be most important for coastal fishermen. However, the
 cross-sectional data indicate that motives vary with fishing gear, vessel
 length and fishermen's age. The results indicate that identifying motives
 for noncompliant behaviour is not straightforward but is important for
 reducing the extent of infringements of the regulations. Fishermen who use
 gill net, seine and long line, for example, are more often motivated to
 noncompliance by technical problems and bureaucracy than hand-jig fishers.
 The study suggests that in order to prevent noncompliance behaviour, the
 authorities' management policy should be designed to address the problems
 encountered by different categories of fishers. For example, offences that
 are committed because of technical problems should be resolved by
 increasing the involvement of fishermen in the process of drawing up
 regulations, whereas offences motivated by economic factors should be
 reduced by increasing inspections. 
Journal: Applied Economics 
Pages: 505-513 
Issue: 4 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600606245 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606245 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:505-513




Template-Type: ReDIF-Article 1.0
Author-Name: Obiyathulla Ismath Bacha 
Author-X-Name-First: Obiyathulla Ismath 
Author-X-Name-Last: Bacha 
Title: A common currency area for ASEAN? issues and feasibility 
Abstract:
  This article examines the feasibility of a Common Currency Area (CCA) for
 ASEAN and the broader ASEAN +5. Using macro-economic data for 14 East
 Asian countries over the 34-year period 1970-2003, this article addresses
 whether a Euro style CCA would be well suited for these countries. Issues
 such as the costs and benefits involved and which countries may be best
 suited are examined. Previous literature on currency unions have
 identified synchronous business cycles, similarity in inflation levels and
 policy congruence to be among essential preconditions. A Vector
 Autoregression Model and Correlation Analysis is used to examine common
 linkages among the 14 sample countries. Impulse response functions and
 variance decomposition is used to identify potential candidates among the
 14 countries. The results show an absence of broad-based common linkages.
 Instead, several paired clusters are identified as potential candidates.
 The results imply that while a region-wide CCA may not now be feasible, a
 strategy of beginning with paired clusters and then expanding may be a
 logical progression if a currency union is a desired objective. 
Journal: Applied Economics 
Pages: 515-529 
Issue: 4 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600675653 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675653 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:515-529




Template-Type: ReDIF-Article 1.0
Author-Name: Charlene Kalenkoski 
Author-X-Name-First: Charlene 
Author-X-Name-Last: Kalenkoski 
Title: Parent-child bargaining, parental transfers, and the post-secondary education decision 
Abstract:
  Schooling decisions are often modelled within a unitary preference
 framework. In this article, an alternative to the unitary preference model
 is proposed in which parents and child have conflicting preferences over
 parental transfers and the level of post-secondary schooling and
 participate in cooperative bargaining as a means of resolving this
 conflict. Comparisons of the implications of the bargaining and unitary
 preference models motivate tests of parental altruism and income pooling.
 To test these hypotheses, reduced form transfer and schooling equations
 are estimated using data from the High School and Beyond Surveys. The
 evidence suggests that the unitary preference model be rejected. 
Journal: Applied Economics 
Pages: 413-436 
Issue: 4 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600690264 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690264 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:413-436




Template-Type: ReDIF-Article 1.0
Author-Name: Karel Jan Alsem 
Author-X-Name-First: Karel Jan 
Author-X-Name-Last: Alsem 
Author-Name: Steven Brakman 
Author-X-Name-First: Steven 
Author-X-Name-Last: Brakman 
Author-Name: Lex Hoogduin 
Author-X-Name-First: Lex 
Author-X-Name-Last: Hoogduin 
Author-Name: Gerard Kuper 
Author-X-Name-First: Gerard 
Author-X-Name-Last: Kuper 
Title: The impact of newspapers on consumer confidence: does spin bias exist? 
Abstract:
  It is sometimes argued that news reports in the media suffer from biased
 reporting. Mullainathan and Shleifer (2002, 2005) argue that there are two
 types of media bias. One bias, called ideology, reflects a news outlet's
 desire to affect reader opinions in a particular direction. The second
 bias, referred to as 'spin' or 'slanting', reflects the outlet's attempt
 to simply create a memorable story. Competition between outlets can
 eliminate the effect of ideological bias, but increases the incentive to
 spin or slant stories. We examine whether we find some evidence of spin in
 Dutch newspaper reporting on the state of the economy. If newspapers are
 indeed able to create memorable stories this should, according to our
 hypothesis, affect the opinion of readers with respect to the state of the
 economy. Sentiments about the actual state of the economy could be
 magnified by spin. As a result, consumer confidence-a variable that
 routinely measures the opinion on the state of the economy-can be expected
 to be affected not only by economic fundamentals, but also by the way
 these fundamentals are reported. We construct a variable that reflects the
 way consumers perceive economic news reported in newspapers. We find that
 this variable indeed has a significant impact on consumer confidence,
 which is short-lived. 
Journal: Applied Economics 
Pages: 531-539 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600707100 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707100 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:531-539




Template-Type: ReDIF-Article 1.0
Author-Name: Carolina Navarro 
Author-X-Name-First: Carolina 
Author-X-Name-Last: Navarro 
Author-Name: Luis Ayala 
Author-X-Name-First: Luis 
Author-X-Name-Last: Ayala 
Title: Multidimensional housing deprivation indices with application to Spain 
Abstract:
  The main aim of this article is to define a multidimensional housing
 deprivation index and identify the main determining characteristics of
 this phenomenon, using Spain as reference. A latent variable model is used
 in order to overcome some of the traditional difficulties encountered in
 multidimensional deprivation studies. The construction of a latent
 structure model has allowed a set of partial housing deprivation indices
 to be grouped together under a single index. It has also enabled each
 individual to be assigned to a different class depending on the level and
 type of deprivation. Results show that the vector of observed variables
 (having hot running water, heating, a leaky roof, damp walls or floor, rot
 in window frames and floors and overcrowding) and the correlations among
 such variables can be explained by a single latent variable. There are
 also specific characteristics that differentiate the population affected
 by housing deprivation. 
Journal: Applied Economics 
Pages: 597-611 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600722323 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722323 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:597-611




Template-Type: ReDIF-Article 1.0
Author-Name: David Hadley 
Author-X-Name-First: David 
Author-X-Name-Last: Hadley 
Author-Name: Xavier Irz 
Author-X-Name-First: Xavier 
Author-X-Name-Last: Irz 
Title: Productivity and farm profit - a microeconomic analysis of the cereal sector in England and Wales 
Abstract:
  This article implements the profit change decomposition methodology
 developed by Grifell-Tatje and Lovell (1999). Profit change over time is
 first decomposed into a price effect and a quantity effect; the quantity
 effect is then decomposed into a productivity effect and an activity
 effect; in turn, the productivity effect is subdivided into a technical
 efficiency effect and a technical change effect, while the activity effect
 is divided into a scale effect, resource mix effect and product mix
 effect. The end result is therefore a measure of six distinct components
 of profit change. The methodology is used to investigate profit changes
 for a sample of cereal farms drawn from the Farm Business Survey in
 England and Wales for the period 1982 to 2000. The results of the analysis
 show an overall decline in profit levels for the period at the average
 speed of &#xa3;4400 annually, with the major part of this decline
 attributable to a negative price effect amounting to &#xa3;7000 annually
 on average. However, this was to some degree offset by a positive quantity
 effect largely driven by the positive contribution of technical change to
 profit growth, worth &#xa3;4000 annually on average. 
Journal: Applied Economics 
Pages: 613-624 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600707209 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707209 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:613-624




Template-Type: ReDIF-Article 1.0
Author-Name: W. D. Walls 
Author-X-Name-First: W. D. 
Author-X-Name-Last: Walls 
Title: Cross-country analysis of movie piracy 
Abstract:
  We examine the rate of motion-picture piracy across a sample of 26
 diverse countries. The level of piracy is explained empirically by the
 level of income, the cost of enforcing property rights, the level of
 collectivism present in a country's social institution and the level of
 internet usage. The results of a cross-country regression analysis
 indicate that piracy is increasing in the level of social coordination and
 the cost of enforcing property rights, unrelated to income and decreasing
 in internet usage. 
Journal: Applied Economics 
Pages: 625-632 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/13504850600707337 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/13504850600707337 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:625-632




Template-Type: ReDIF-Article 1.0
Author-Name: Zeynel Abidin Ozdemir 
Author-X-Name-First: Zeynel Abidin 
Author-X-Name-Last: Ozdemir 
Title: Efficient market hypothesis: evidence from a small open-economy 
Abstract:
  This article studies the efficient market hypothesis for the Istanbul
 Stock Exchange National 100 (ISEN 100) price index within the Lumsdaine
 and Papell two structural breaks unit root test framework. The main
 finding of the article shows that the ISEN 100 index is characterized by a
 unit root with two structural breaks, which is consistent with the
 efficient market hypothesis. In addition, the article applies the
 augmented Dickey-Fuller test, runs test and the variance-ratio test to
 test the weak-form efficiency of the ISEN 100. The analyses are repeated
 for three sub-periods delineated in view of the endogenously determined
 break points. 
Journal: Applied Economics 
Pages: 633-641 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600722315 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722315 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:633-641




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Crespo Cuaresma 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Crespo Cuaresma 
Author-Name: Doris Ritzberger-Grunwald 
Author-X-Name-First: Doris 
Author-X-Name-Last: Ritzberger-Grunwald 
Author-Name: Maria Antoinette Silgoner 
Author-X-Name-First: Maria Antoinette 
Author-X-Name-Last: Silgoner 
Title: Growth, convergence and EU membership 
Abstract:
  The effect of European integration on long-term growth of the EU-15
 member states is studied by means of panel data methods. The length of EU
 membership is found to have a significant positive effect on economic
 growth, which is relatively higher for poorer countries. While previous
 empirical studies tend not to find positive growth effects of regional
 integration, the present study suggests an asymmetric,
 convergence-stimulating impact of EU membership on long-term growth. 
Journal: Applied Economics 
Pages: 643-656 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749524 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749524 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:643-656




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Hsien Chen 
Author-X-Name-First: Shu-Hsien 
Author-X-Name-Last: Chen 
Author-Name: Ming-Shu Hua 
Author-X-Name-First: Ming-Shu 
Author-X-Name-Last: Hua 
Author-Name: Richard Stuetz 
Author-X-Name-First: Richard 
Author-X-Name-Last: Stuetz 
Title: Measuring country event risk compensation on BRICs international portfolio management 
Abstract:
  The BRICs nations (Brazil, Russia, India and China) have a strong
 relative economic growth pattern in the world among economic powers. The
 allure of globalization has made the analysis and assessment of national
 critical component of international portfolio management in recent years.
 We construct the model from comparing the relative SD of stock return
 whereby higher SDs are generally associated with more risk. This relative
 SD forms a principle component in the change of the weights on the
 international portfolio choice. The result shows that event jump risk not
 only makes the investor's allocation more conservative overall, but also
 it can be compensated on BRICs event risk. 
Journal: Applied Economics 
Pages: 657-665 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749474 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749474 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:657-665




Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Pinilla 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Pinilla 
Author-Name: Maria-Isabel Ayuda 
Author-X-Name-First: Maria-Isabel 
Author-X-Name-Last: Ayuda 
Title: Market dynamism and international trade: a case study of Mediterranean agricultural products, 1850-1935 
Abstract:
  This article concentrates on analysing the rightward shifts of the demand
 curve for Mediterranean agricultural products from 1850 to 1938. We have
 found that such shifts were especially conditioned by the different income
 elasticities of demand and by changes or otherwise, in consumer
 preferences. Our aim is to show that there was an initial conditioning
 factor for the producer countries to take full advantage of these
 potential growth opportunities, namely the size of such shifts. 
Journal: Applied Economics 
Pages: 583-595 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600707258 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707258 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:583-595




Template-Type: ReDIF-Article 1.0
Author-Name: Hendrik Jurges 
Author-X-Name-First: Hendrik 
Author-X-Name-Last: Jurges 
Title: Self-assessed health, reference levels and mortality 
Abstract:
  The article studies the relationship between self-assessed health (SAH)
 and subsequent mortality in the German Socio-Economic Panel. Specifically,
 I examine whether socio-economic characteristics of respondents have an
 effect on mortality, conditional on SAH. Such conditional effects are
 shown to exist for various covariates, including age, income and wealth.
 These findings question the comparability of SAH across different
 socio-economic groups. 
Journal: Applied Economics 
Pages: 569-582 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500447823 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447823 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:569-582




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti 
Author-X-Name-First: Leonardo 
Author-X-Name-Last: Becchetti 
Author-Name: Stefania Di Giacomo 
Author-X-Name-First: Stefania 
Author-X-Name-Last: Di Giacomo 
Author-Name: Damiano Pinnacchio 
Author-X-Name-First: Damiano 
Author-X-Name-Last: Pinnacchio 
Title: Corporate social responsibility and corporate performance: evidence from a panel of US listed companies 
Abstract:
  We investigate whether inclusion and permanence in the domini social
 index (DSI) affects corporate performance on a sample of around 1000 firms
 in a 13-year interval by controlling for size, industry, business cycle
 and time invariant firm idiosyncratic characteristics. Our results find
 partial support to the hypothesis that corporate social responsibility is
 a move from the shareholders wealth to a multi-stakeholders welfare
 target. On the one side, permanence into the domini index (DI) is shown to
 increase (reduce) significantly total sales per employee (returns on
 equity but not when large and R&D investing firms are excluded from the
 sample). On the other side, lower returns on equity for Domini firms seem
 nonetheless to be accompanied by relatively lower conditional volatility
 and lower reaction to extreme shocks with respect to the control sample.
 An explanation for these findings, suggested by the inspection of Domini
 criteria, is that social responsibility implies, on the one side,
 decisions leading to higher cost of labour and of intermediate output, but
 may, on the other side, enhance involvement, motivation and identification
 of the workforce with company goals with positive effects on productivity. 
Journal: Applied Economics 
Pages: 541-567 
Issue: 5 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500428112 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428112 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:541-567




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Vogt 
Author-X-Name-First: Michael 
Author-X-Name-Last: Vogt 
Title: Determinants of the demand for US exports and imports of tourism 
Abstract:
  This study estimates real income and relative price elasticities of
 demand for US exports and imports of tourism with annual data from
 1973-2002. Overall, there is empirical support for the model of tourism
 expenditure. With one exception, the estimated parameters have the correct
 signs, and most are significantly different from zero. The US trading
 partners appear to be more sensitive to the determinants of international
 tourism than is the US The greater response (of the US trading partners)
 to changes in real income may account for the US running surpluses on its
 tourism balance during 16 of the 29 years of our sample period. 
Journal: Applied Economics 
Pages: 667-672 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749698 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749698 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:667-672




Template-Type: ReDIF-Article 1.0
Author-Name: Henry Kinnucan 
Author-X-Name-First: Henry 
Author-X-Name-Last: Kinnucan 
Author-Name: &#xd8;ystein Myrland 
Author-X-Name-First: &#xd8;ystein 
Author-X-Name-Last: Myrland 
Title: On generic vs. brand promotion of farm products in foreign markets 
Abstract:
  Farm groups and their governments spend millions of dollars each year
 advertising agricultural products in international markets. Intuitively,
 country-of-origin or 'brand' advertising should be more profitable than
 generic advertising in that it enhances product differentiation and
 reduces free riding. However, unlike generic advertising, brand
 advertising decreases the demand for competing imports and lowers their
 prices when supplies are upward sloping. In addition to inviting
 retaliation, the decline in the prices of competing products erodes the
 price of the advertised product through second-round or 'market feedback'
 effects. In this study, we develop a generalized model for assessing the
 relative effectiveness of generic and brand promotion in the international
 market when products are differentiated by source origin and supplies are
 uncontrolled. Applying the model to US beef promotion in Japan, we find
 that when brand and generic advertising are equally efficient in the sense
 that they cause equivalent horizontal shifts in the group and
 product-specific demand curves, generic advertising is indeed more
 profitable for most of the relevant parameter space. Distributional
 analysis suggests that, with equal export supply elasticities, the gross
 benefits of generic advertising are distributed across exporters in
 proportion to the expenditure elasticities for the products in question. 
Journal: Applied Economics 
Pages: 673-684 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749664 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749664 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:673-684




Template-Type: ReDIF-Article 1.0
Author-Name: Laurence Cecchini 
Author-X-Name-First: Laurence 
Author-X-Name-Last: Cecchini 
Author-Name: Charles Lai-Tong 
Author-X-Name-First: Charles 
Author-X-Name-Last: Lai-Tong 
Title: The links between openness and productivity in Mediterranean countries 
Abstract:
  We examine the relation between the international trade, the foreign
 direct investment and the total factor productivity of the Mediterranean
 partner countries of Europe within the framework of a cointegrated panel
 model. The results, obtained from data on seven Mediterranean partner
 countries of Europe (Algeria, Egypt, Israel, Jordan, Morocco, Tunisia,
 Turkey), show that FDI and human capital are complementary in the
 acquisition of productivity gains. We identify the threshold level of
 human capital from which the received foreign investments generate
 beneficial effects. In a more general way, the improvement of the total
 factor productivity via the international openness results only from the
 indirect effects related to the transfer of technology. 
Journal: Applied Economics 
Pages: 685-697 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749771 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749771 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:685-697




Template-Type: ReDIF-Article 1.0
Author-Name: Steve Leybourne 
Author-X-Name-First: Steve 
Author-X-Name-Last: Leybourne 
Author-Name: Tae-Hwan Kim 
Author-X-Name-First: Tae-Hwan 
Author-X-Name-Last: Kim 
Author-Name: Paul Newbold 
Author-X-Name-First: Paul 
Author-X-Name-Last: Newbold 
Title: A more powerful modification of Johansen's cointegration tests 
Abstract:
  We apply the idea of using reversed time series to improve the power of
 Johansen tests. We suggest computationally simple variants of the trace
 and maximum eigenvalue statistics and establish their limit distributions.
 Both are shown, via simulation, to yield nontrivial power gains. 
Journal: Applied Economics 
Pages: 725-729 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749714 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749714 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:725-729




Template-Type: ReDIF-Article 1.0
Author-Name: Masoud Moghaddam 
Author-X-Name-First: Masoud 
Author-X-Name-Last: Moghaddam 
Author-Name: Momodou Bah 
Author-X-Name-First: Momodou 
Author-X-Name-Last: Bah 
Title: The money demand function in a small, open and quasi-monetary economy: the Gambia 
Abstract:
  The open-economy money demand asserts that for its underlying theory to
 hold, the variables ought to be co-integrated. Co-integrated variables
 although nonstationary in level, can share a long-term trend that is
 indeed stationary. However, the open money demand model has mainly been
 tested in developed and developing nations. This article investigates the
 co-integrated open-economy money demand in the Gambia where the macro
 economy is a quasi-monetary system, small (relative to the world market),
 but very open with a floating exchange rate regime. In the co-integrated
 space, the Gambian money demand appears to be quite responsive to domestic
 income, a measure of interest rate and the real exchange rate
 fluctuations. 
Journal: Applied Economics 
Pages: 731-734 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749649 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749649 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:731-734




Template-Type: ReDIF-Article 1.0
Author-Name: Ilkay Sendeniz-Yuncu 
Author-X-Name-First: Ilkay 
Author-X-Name-Last: Sendeniz-Yuncu 
Author-Name: Levent Akdeniz 
Author-X-Name-First: Levent 
Author-X-Name-Last: Akdeniz 
Author-Name: Kursat Aydo&#x11f;an 
Author-X-Name-First: Kursat 
Author-X-Name-Last: Aydo&#x11f;an 
Title: Interdependence of the banking sector and the real sector: evidence from OECD countries 
Abstract:
  This article investigates the validity of the credit view hypothesis in
 eleven OECD (Organization for Economic Cooperation and Development)
 countries over the period 1987:QI to 2003:QIII. The existence of a
 long-run relationship between the banking sector and the real sector is
 supported by cointegration test results. For some of the countries in the
 sample, Granger causality tests show the leading role of the banking
 sector in the real sector, thus supporting the credit view hypothesis,
 whereas for other countries, the same tests indicate no interdependence. 
Journal: Applied Economics 
Pages: 749-764 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600735424 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735424 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:749-764




Template-Type: ReDIF-Article 1.0
Author-Name: Ebru Guven Solakoglu 
Author-X-Name-First: Ebru Guven 
Author-X-Name-Last: Solakoglu 
Title: The effect of railroads and price responsiveness on acreage decisions in the post-Bellum period 
Abstract:
  This study analyses the effect of farmers' price responsiveness and
 railroad development on acreage decisions in the late 19th century. A
 potential simultaneity between these determinants was mentioned in some
 earlier studies, but never examined. This study sheds some light on these
 relationships by employing a simultaneous equations model. The results
 show that acreage, prices and railroad mileage were jointly determined in
 the late nineteenth century. Furthermore, farmers were very responsive to
 wheat prices in their wheat acreage decisions in the eastern and
 northeastern regions when endogeneity effect is considered. In the western
 and southern regions, however, farmers were not responsive to wheat prices
 in their wheat acreage decisions. On the other hand, they were very
 responsive to corn and animal prices in their corn acreage decisions.
 Railroads were one important determinant that affected farmers' acreage
 decisions positively in every region. 
Journal: Applied Economics 
Pages: 765-771 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749599 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749599 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:765-771




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer 
Author-X-Name-First: Richard 
Author-X-Name-Last: Thalheimer 
Title: Government restrictions and the demand for casino and parimutuel wagering 
Abstract:
  Growth in casino wagering in the United States from the mid-1980s forward
 has been extraordinary. Over the same period, however, parimutuel wagering
 has declined. Concern for this decline has prompted a number of states to
 allow parimutuel racetracks to offer casino-type gaming devices at their
 facilities. Such operations are commonly referred to as 'racinos'. If the
 gaming devices at a racino are under the auspices of a state lottery, they
 are referred to as video lottery terminals (VLTs). Separate parimutuel and
 VLT wagering demand models were estimated for a racino facility. A number
 of restrictions were imposed on the VLT's at the beginning of the study
 period including: number of VLT's, type of game and machine, maximum bet
 per play and VLT location. The effect of these restrictions on VLT and
 parimutuel handles was a major focus of this article. Also of importance
 was an examination of the relationship between the VLT and parimutuel
 products. Relaxation of government restrictions on the VLT's was found to
 have resulted in a large increase in VLT wagering. On the other hand,
 parimutuel wagering was found to decrease with the relaxation of
 restrictions on the VLT's. The presence and growth of the VLT product was
 found to decrease parimutuel handle. The presence and growth of the
 parimutuel product was found to increase VLT handle. 
Journal: Applied Economics 
Pages: 773-791 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749672 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749672 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:773-791




Template-Type: ReDIF-Article 1.0
Author-Name: Sanford Berg 
Author-X-Name-First: Sanford 
Author-X-Name-Last: Berg 
Author-Name: Chen Lin 
Author-X-Name-First: Chen 
Author-X-Name-Last: Lin 
Title: Consistency in performance rankings: the Peru water sector 
Abstract:
  Regulators can utilize a number of alternative methodologies for
 comparing firm efficiency, but these approaches need to be robust to be
 accepted by stakeholders. This study evaluates the consistency of
 water-utility performance rankings for Peruvian water utilities. The
 results indicate that data envelopment analysis (DEA) and stochastic
 frontier analysis (SFA) yield similar rankings in this case. In addition,
 the techniques have comparable success for identifying the best and worst
 performing utilities. However, these rankings based on sophisticated
 statistical techniques are not highly correlated with those developed by
 the Peruvian water regulator (SUNASS). This result does not invalidate the
 performance rankings obtained by the regulator, since those rankings are
 based on more dimensions of utility performance. However, they illustrate
 the importance of developing sound techniques for identifying weak
 utilities. Improvements in sector performance require that benchmarking be
 given greater attention than in the past. 
Journal: Applied Economics 
Pages: 793-805 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749409 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749409 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:793-805




Template-Type: ReDIF-Article 1.0
Author-Name: Macarena Lozano 
Author-X-Name-First: Macarena 
Author-X-Name-Last: Lozano 
Author-Name: Pilar Moreno 
Author-X-Name-First: Pilar 
Author-X-Name-Last: Moreno 
Title: A discrete time single-server queue with balking: economic applications 
Abstract:
  This article studies a discrete time single-server queue with finite and
 infinite buffer where the users have the option to leave the queue upon
 arrival (balking). We consider two variants of the model in accordance
 with the balking policies. Firstly, all the arriving customers balk with a
 constant probability. Secondly, arriving customers increase their balking
 probabilities as more customers join the system. Specifically, we find the
 ergodicity condition and closed-form expressions for the stationary
 distribution of the system size, of the waiting/spending time in the FCFS
 system and of the unfinished work. The mathematical model is applied in
 order to resolve several real-life problems in the economic field; in this
 sense, practical applications in the secondary and tertiary sector are
 shown. We also develop a cost model to determine the buffer capacity that
 minimizes certain cost function and give some numerical examples. 
Journal: Applied Economics 
Pages: 735-748 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749607 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749607 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:735-748




Template-Type: ReDIF-Article 1.0
Author-Name: Dan Friesner 
Author-X-Name-First: Dan 
Author-X-Name-Last: Friesner 
Author-Name: Robert Roseman 
Author-X-Name-First: Robert 
Author-X-Name-Last: Roseman 
Author-Name: Matthew McPherson 
Author-X-Name-First: Matthew 
Author-X-Name-Last: McPherson 
Title: Are hospitals seasonally inefficient? Evidence from Washington State 
Abstract:
  Efficiency measurement has been one of the most extensively explored
 areas of health services research over the past two decades. Despite this
 attention, few studies have examined whether a provider's efficiency
 varies on a monthly, quarterly or other, sub-annual basis. This article
 presents an empirical study that looks for evidence of seasonal
 inefficiency. Using a quarterly panel of general, acute-care hospitals
 from Washington State, we find that hospital efficiency does vary over
 time; however, the nature of this dynamic inefficiency depends on the type
 of efficiency being measured. Our results suggest that technical and cost
 efficiency vary by quarter. Allocative and scale efficiency also vary on a
 quarterly basis, but only if the data are jointly disaggregated by quarter
 and another, firm-specific factor such as size or operating status. Thus,
 future research, corporate decisions and government policies designed to
 improve the efficiency of hospital care need to account for seasonal
 trends in hospital efficiency. 
Journal: Applied Economics 
Pages: 699-723 
Issue: 6 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749730 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:699-723




Template-Type: ReDIF-Article 1.0
Author-Name: James Payne 
Author-X-Name-First: James 
Author-X-Name-Last: Payne 
Author-Name: Hassan Mohammadi 
Author-X-Name-First: Hassan 
Author-X-Name-Last: Mohammadi 
Author-Name: Murat Cak 
Author-X-Name-First: Murat 
Author-X-Name-Last: Cak 
Title: Turkish budget deficit sustainability and the revenue-expenditure nexus 
Abstract:
  The sustainability of the Turkish budget deficits as well as the dynamics
 of government revenues and expenditures in controlling the size of the
 deficit is examined using annual data from 1968 to 2004. The findings
 support the existence of a long-run relation between government revenues
 and expenditures once allowance is made for an unknown structural break.
 However, the size of the slope parameter is significantly less than one,
 suggesting that the government might face difficulties in financing its
 future debt. With respect to the revenue-expenditure nexus, the empirical
 evidence is favourable to the tax-spend hypothesis through the error
 correction term in the expenditures equation. Finally, there is no
 evidence of asymmetries in the adjustment process in either the threshhold
 autoregressive or momentum threshold autoregressive specifications of the
 budgetary adjustment process. 
Journal: Applied Economics 
Pages: 823-830 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749904 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749904 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:823-830




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow 
Author-X-Name-First: Michael 
Author-X-Name-Last: Marlow 
Title: Determinants of state tobacco-control expenditures 
Abstract:
  While Centers for Disease Control and Prevention believe that most state
 governments under-fund tobacco-control programs, little is known about why
 large variation in spending exists between state governments. This study
 explores reasons for spending variation through an econometric model of
 per capita spending on tobacco-control programs that explores the effects
 of smoking prevalence while holding constant tobacco settlement funds,
 state budget deficits, and other factors that might also be expected to
 influence spending variation. Empirical evidence indicates no support for
 the hypothesis that states with high smoking prevalence spend more on
 tobacco-control than other states. This finding may be quite surprising to
 those working in areas of public health and clearly leads to many
 important policy questions regarding why the data indicate that funding
 does not appear to bear any relation to perceived public health problems
 as would be predicted if policymakers were following a 'rational needs'
 approach to funding. 
Journal: Applied Economics 
Pages: 831-839 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771098 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771098 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:831-839




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Cosme Costa Vieira 
Author-X-Name-First: Pedro Cosme Costa 
Author-X-Name-Last: Vieira 
Title: An economics journals' ranking that takes into account the number of pages and co-authors 
Abstract:
  In this article, I examine whether the academics reward policy must
 correlate positively with the published number of articles per co-author,
 number of pages and journals reputation. This is accomplished by
 estimating a nonlinear model with a panel data from 168 economics journals
 covered in the ISI-Web of Knowledge database (58 825 articles). The data
 reinforces the conjecture that published article value is slightly
 increasing with the number of co-authors and is proportional to the number
 of pages. The data also suggests that there are four distinct groups
 related to journal quality that I name A, B+, B and B-. 
Journal: Applied Economics 
Pages: 853-861 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749755 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749755 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:853-861




Template-Type: ReDIF-Article 1.0
Author-Name: Ho Jin Lee 
Author-X-Name-First: Ho Jin 
Author-X-Name-Last: Lee 
Author-Name: Akinori Tomohara 
Author-X-Name-First: Akinori 
Author-X-Name-Last: Tomohara 
Title: Public health insurance expansions and labour supply of married women: the state children's health insurance programme 
Abstract:
  While the relationships between health insurance and the labour supply of
 women have been explored in the literature, little is known about the
 effects of offering public health insurance on the labour supply decisions
 of married women. This article examines the labour supply decisions of
 married women using the State Children's Health Insurance Programme. Our
 empirical analysis implies that certain groups of married women may be
 leaving the labour force in order to provide public health insurance for
 their children. We conclude that the programme causes unexpected
 efficiency losses through distorted labour supply decisions. 
Journal: Applied Economics 
Pages: 863-874 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749789 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:863-874




Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda 
Author-X-Name-First: Kosei 
Author-X-Name-Last: Fukuda 
Title: Differentiating between business cycles and growth cycles: evidence from 15 developed countries 
Abstract:
  Growth cycles are often mistaken for business cycles, although these two
 have different statistical properties. In order to differentiate between
 them in a statistically satisfactory manner, the Bayesian information
 criterion-(BIC) based model-selection approach is presented. Business
 cycles are described by the cyclical trend model, and growth cycles are
 described by the trend-plus-cycle model. Whether the observed time series
 is derived from business cycles or from growth cycles is determined as a
 result of model selection. It is shown via data-based simulations that the
 proposed method works well in most situations. Empirical results obtained
 for 15 countries suggest that the business cycle model is selected for
 five countries, the growth cycle model is selected for two countries and
 the trend-plus-noise model is selected for eight countries. 
Journal: Applied Economics 
Pages: 875-883 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749862 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749862 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:875-883




Template-Type: ReDIF-Article 1.0
Author-Name: Niko Gobbin 
Author-X-Name-First: Niko 
Author-X-Name-Last: Gobbin 
Author-Name: Glenn Rayp 
Author-X-Name-First: Glenn 
Author-X-Name-Last: Rayp 
Title: Different ways of looking at old issues: a time-series approach to inequality and growth 
Abstract:
  In this article we propose an econometric approach that steers clear of
 parameter heterogeneity, omitted variable bias and endogeneity problems,
 from which suffers the econometric analysis of economic growth. We propose
 to investigate the relation between income inequality and economic growth
 in a cointegrated VAR setting and present an application to Belgium, US
 and Finland. 
Journal: Applied Economics 
Pages: 885-895 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771106 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771106 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:885-895




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Revisiting the US money demand function: an application of the Lagrange multiplier structural break unit root test and the bounds test for a long-run relationship 
Abstract:
  In this article, we examine the issue of a levels relationship and
 stability of the US money demand function over the period 1959:01 to
 2004:02. We use the Lagrange multiplier structural break unit root test
 and the bounds testing approach to a long-run relationship in levels of
 the variables, namely real money demand, nominal interest rate and real
 income. We find greater evidence for a long-run relationship in levels and
 stability of the US money demand function when we use M2 as a proxy for
 money demand. However, we find little evidence for a long-run relationship
 between M1 and M2 with their determinants for the recent period, spanning
 the last decade or so. 
Journal: Applied Economics 
Pages: 897-904 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749813 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:897-904




Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Lin Tao 
Author-X-Name-First: Hung-Lin 
Author-X-Name-Last: Tao 
Title: What makes devout Christians happier? Evidence from Taiwan 
Abstract:
  This study divides the effects of religious involvement on subjective
 well being (SWB) into direct and indirect channels. The indirect channels
 mean that, by improving its adherents' present lives, religion enhances
 their happiness. It is found that devout Christians enhance their SWB by
 means of one direct channel and three indirect channels; these indirect
 channels being high health expectations, good family relationship
 expectations and sound social networks. A good family relationship
 expectation is found to be the most important factor among the indirect
 channels. Devout Christians are happier than their counterparts based on a
 probability of 28, 55, and 45% of the 28% are accounted for by the direct
 channel and the three indirect channels, respectively. 
Journal: Applied Economics 
Pages: 905-919 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749839 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749839 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:905-919




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Nihat Solakoglu 
Author-X-Name-First: Mehmet Nihat 
Author-X-Name-Last: Solakoglu 
Author-Name: Ebru Guven Solakoglu 
Author-X-Name-First: Ebru Guven 
Author-X-Name-Last: Solakoglu 
Author-Name: Tunc Demira&#x11f; 
Author-X-Name-First: Tunc 
Author-X-Name-Last: Demira&#x11f; 
Title: Exchange rate volatility and exports: a firm-level analysis 
Abstract:
  The relationship between real exports and exchange rate volatility is
 investigated using panel data analysis at the firm level. Results indicate
 that there is no negative or positive relationship between volatility and
 real exports. In addition, firm size and level of international activity
 do not influence the size and significance of the volatility effect on
 exports. However, there is some evidence that firms use import revenue to
 lower their exchange rate exposure. 
Journal: Applied Economics 
Pages: 921-929 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749888 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749888 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:921-929




Template-Type: ReDIF-Article 1.0
Author-Name: Jaoaqin Alegre 
Author-X-Name-First: Jaoaqin 
Author-X-Name-Last: Alegre 
Author-Name: Llorenc Pou 
Author-X-Name-First: Llorenc 
Author-X-Name-Last: Pou 
Title: Further evidence of excess sensitivity of consumption? Nonseparability among goods and heterogeneity across households 
Abstract:
  The standard theoretical framework for analysing households'
 intertemporal decisions is the life-cycle/permanent income model. Among
 its implications, testing the model allows to analyse the response of
 consumption to fiscal policy. However, the empirical literature with
 microdata has yielded mixed results. This article examines the sensitivity
 of the results to the assumption of separability among goods and of
 homogeneity across households. For that purpose, we test a rational
 expectations permanent income model with household data drawn from the
 Spanish Family Expenditure Survey. This survey contains detailed
 information on total expenditure and the income presents large, exogenous
 quarterly changes due to an institutional feature. The article shows that
 assuming separability among commodities biases the test against the model.
 When separability is not imposed, we show that the rejection of the model
 depends on heterogeneity across households in terms of their members being
 unemployed or not. For those households permanently employed, the model
 cannot be rejected whatever their income status. 
Journal: Applied Economics 
Pages: 931-948 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749896 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749896 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:931-948




Template-Type: ReDIF-Article 1.0
Author-Name: Euston Quah 
Author-X-Name-First: Euston 
Author-X-Name-Last: Quah 
Author-Name: Jongsay Yong 
Author-X-Name-First: Jongsay 
Author-X-Name-Last: Yong 
Title: An assessment of four popular auction mechanisms in the siting of NIMBY facilities: some experimental evidence 
Abstract:
  The issue of locating locally unfriendly but socially beneficial
 facilities such as landfills and power stations is an important public
 policy concern in many countries. Local residents in the area where such
 facilities are to be located tend to exhibit strong opposition, no doubt
 due to the asymmetric distribution of the costs and benefits of such
 not-in-my-backyard (NIMBY) facilities. A potentially useful mechanism for
 the siting of such facilities is by compensation auctions, which attempt
 to incorporate the market mechanism into the decision making process. In
 such auctions, communities name the compensation they require to host such
 facilities, and the community demanding the least amount of compensation
 gets to host the facility. This research attempts to evaluate the
 performance of such compensation auctions using laboratory exepriments.
 Four popular auction formats are evaluated: first- and second-price and
 all-pay first-and second-price sealed-bid auctions. The latter two formats
 correspond to the compensation auctions with penalty payments proposed by
 Kunreuther and Kleindorfer (1986) and Quah and Tan (1998), who claim that
 these auctions are more efficient as they restrains strategic (or over)
 bidding. Our results, however, contradict this claim. We show that the
 first-and second-price auctions without penalty payments are in fact more
 efficient, in that they tend to minimize social costs, and truthful
 bidding is more likely. 
Journal: Applied Economics 
Pages: 841-852 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600758509 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600758509 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:841-852




Template-Type: ReDIF-Article 1.0
Author-Name: Bar&#x131;s Yoruk 
Author-X-Name-First: Bar&#x131;s 
Author-X-Name-Last: Yoruk 
Author-Name: Osnman Zaim 
Author-X-Name-First: Osnman 
Author-X-Name-Last: Zaim 
Title: International regulations and environmental performance 
Abstract:
  This article employs the data envelopment analysis (DEA) approach to
 compute the environmental performance of all but two Organisation for
 Economic Co-operation and Development (OECD) countries. It is found that
 although the environmental performance of countries differs over time,
 Poland and Hungary are the two best performers for all periods while
 Italy, Japan, Austria and Switzerland are ranked among the worst. The
 effect of international regulations and some observed characteristics of
 countries on environmental performance are also investigated.
 International regulations are reported to have a positive effect on
 environmental performance. 
Journal: Applied Economics 
Pages: 807-822 
Issue: 7 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749821 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749821 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:807-822




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Yao Tseng 
Author-X-Name-First: Chun-Yao 
Author-X-Name-Last: Tseng 
Title: Internal R&D effort, external imported technology and economic value added: empirical study of Taiwan's electronic industry 
Abstract:
  Technology innovation is a significant resource in the contemporary
 knowledge-based economy. The main sources of technology innovation are
 internal R&D effort and external imported technology. Two primary
 traditional production factors are physical capital and labour. The
 theoretical basis for this study is an evolutionary Cobb-Douglas
 production function explaining the effects of four resources (internal R&D
 effort, imported technology, physical capital and labour) on a firm's
 sales and economic value added (EVA). Time-series cross-section panel data
 from 219 Taiwan electronic manufacturers between 1990 and 2003 were
 employed for fixed effect model. Major empirical findings were observed in
 this study: first, Internal R&D effort can positively affect a firm's
 sales and EVA. Conversely, imported technology is found to have had no
 significant effect on sales and EVA. Second, although both physical
 capital and labour affect a firm's sales more than the effects of internal
 R&D and external imported technology, internal R&D effort contributes to a
 firm's EVA beyond the effects of imported technology, physical capital and
 labour. Third, External imported technology has neither a complementary
 nor a substitutive relationship with internal R&D effort. 
Journal: Applied Economics 
Pages: 1073-1082 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771163 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771163 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1073-1082




Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Sgherri 
Author-X-Name-First: Silvia 
Author-X-Name-Last: Sgherri 
Title: Explicit and implicit targets in open economies 
Abstract:
  Under a flexible inflation targeting regime, should policymakers avoid
 any reaction to movements in the foreign exchange market? Using data for
 six advanced open economies explicitly targeting inflation, this article
 examines empirically whether real exchange rate disequilibria
 systematically affect the conduct of monetary policy. Estimates indicate
 that monetary policy responses in inflation-targeting, open economies have
 changed significantly, as the institutional framework for the conduct of
 monetary policy has evolved. In particular, an explicit target for core
 inflation and a greater use of the expectation channel of monetary policy
 appear to be the key features of the newest policy framework. In this
 context, central banks are unlikely to react to regular fluctuations in
 the exchange rate. 
Journal: Applied Economics 
Pages: 969-980 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749912 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749912 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:969-980




Template-Type: ReDIF-Article 1.0
Author-Name: Javier Alonso 
Author-X-Name-First: Javier 
Author-X-Name-Last: Alonso 
Author-Name: Simon Sosvilla-Rivero 
Author-X-Name-First: Simon 
Author-X-Name-Last: Sosvilla-Rivero 
Title: Human capital in Spain: an estimate of educational attainment 
Abstract:
  In this article an alternative methodology is proposed for obtaining long
 time-series data for a human capital indicator based on the average number
 of years of education of the working-age population. In contrast to
 previous studies, we use Labour Force Survey microdata relating to the
 level of education actually completed, in order to construct temporal
 profiles of educational attainment and thus avoid the need to interpolate
 from censuses. To illustrate the method proposed, we evaluate the average
 number of years of education of the Spanish working-age population for the
 period 1910 to 2000. 
Journal: Applied Economics 
Pages: 1005-1013 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771171 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771171 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1005-1013




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Drakos 
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Drakos 
Title: Efficiency and formation of expectations: evidence from the European investment survey 
Abstract:
  The European Commission conducts an annual survey regarding planned and
 realized business fixed investment across various manufacturing sectors in
 Euroland. In this study we investigate the predictive content of
 survey-based expectations on investment. In addition, we empirically test
 the rationality of respondents both in a time series as well as in a panel
 context. According to our results, based on pooling the data, efficiency
 is rejected since expectations are biased predictors of actual outcomes.
 Furthermore, expectations revisions are found to be correlated with
 components of the information set known at the time of decision making.
 Finally, our results qualify regressive expectations as the mechanism that
 more adequately describes the formation of expectations. 
Journal: Applied Economics 
Pages: 1015-1022 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771189 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771189 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1015-1022




Template-Type: ReDIF-Article 1.0
Author-Name: Kyprianos Prodromidis 
Author-X-Name-First: Kyprianos 
Author-X-Name-Last: Prodromidis 
Author-Name: Prodromos Prodromidis 
Author-X-Name-First: Prodromos 
Author-X-Name-Last: Prodromidis 
Title: Returns to education: the Greek experience, 1988-1999 
Abstract:
  This article provides estimates of private rates of return to education
 in Greece derived from Mincerian-type earnings equations. The data come
 from the latest three household surveys of the country covering the 1988
 to 1999 period. The empirical evidence suggests that: rates of return
 associated with female high school and university graduates exceed the
 respective rates for male graduates; rates of return pertaining to
 tertiary education graduates are increasing over time, whereas the
 corresponding rates for secondary education graduates follow an inverted
 U-shaped pattern and dropouts from any education degree end up with rates
 of return lower than the rates associated with the immediately preceding
 education level. 
Journal: Applied Economics 
Pages: 1023-1030 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771197 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771197 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1023-1030




Template-Type: ReDIF-Article 1.0
Author-Name: Jung Hur 
Author-X-Name-First: Jung 
Author-X-Name-Last: Hur 
Author-Name: Donghyun Park 
Author-X-Name-First: Donghyun 
Author-X-Name-Last: Park 
Author-Name: Joseph Alba 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Alba 
Title: Economic geography in the presence of preferential trade agreements: an empirical analysis of OECD data 
Abstract:
  In the presence of preferential trade agreements (PTAs), there are two
 distinct levels of economic geography-global economic geography (GEG)
 between a PTA bloc and the world and local economic geography (LEG)
 between a PTA member and its PTA bloc. Using OECD data, we empirically
 examine whether both types of economic geography can help to explain the
 international production structure. Our findings provide some support for
 the importance of distinguishing between LEG and GEG when testing for the
 presence of economic geography. 
Journal: Applied Economics 
Pages: 1031-1041 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771213 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771213 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1031-1041




Template-Type: ReDIF-Article 1.0
Author-Name: En-Ai Liao 
Author-X-Name-First: En-Ai 
Author-X-Name-Last: Liao 
Author-Name: Chia-Hung Teng 
Author-X-Name-First: Chia-Hung 
Author-X-Name-Last: Teng 
Title: The effects of monetary policy: a DSGE model analysis of Taiwan 
Abstract:
  This article attempts to use empirical data to analyse the impact of
 monetary policy in a dynamic stochastic general equilibrium model.
 According to the monetary policy decisions of the Central Bank of China
 (Taiwan), maintaining price, financial stability and fostering economic
 growth are the ultimate goals of monetary policy during the empirical
 period. First, this article uses the cointegration tests to determine the
 operating targets, the intermediate targets and the ultimate goals of
 monetary policy. Then, a forward-looking aggregate demand-aggregate supply
 model for a small open economy is specified, and policy discretion is
 included in this model. Finally, the model is estimated by a linear state
 space model and is used to analyse the short-run effects of a systematic
 monetary change. 
Journal: Applied Economics 
Pages: 1043-1051 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771130 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771130 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1043-1051




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Biman Chand Prasad 
Author-X-Name-First: Biman Chand 
Author-X-Name-Last: Prasad 
Title: Are shocks to real effective exchange rates permanent or transitory? Evidence from Pacific Island countries 
Abstract:
  In this article, we consider the stability of the real effective exchange
 rates for four Pacific Island countries using the Lee and Strazicich
 (2003a, b) unit root test, which allows one to incorporate at most two
 structural breaks in the data series. Our main finding is that for Papua
 New Guinea and Samoa, exchange rates are stable, implying that shocks will
 have a transitory effect on real effective exchange rates, while for Fiji
 and the Solomon Islands we find exchange rates to be unstable, implying
 that shocks will have a permanent effect on real effective exchange rates. 
Journal: Applied Economics 
Pages: 1053-1060 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771122 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771122 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1053-1060




Template-Type: ReDIF-Article 1.0
Author-Name: Daisuke Tsuruta 
Author-X-Name-First: Daisuke 
Author-X-Name-Last: Tsuruta 
Title: Bank information monopoly and trade credit: do only banks have information about small businesses? 
Abstract:
  According to previous studies, a bank can set a higher interest rate for
 small firms by establishing a lending relationship since information
 asymmetry limits competition between banks. Therefore, the bank can
 acquire monopoly rent from small firms. However, if small firms can use
 trade credit which is another financial source, the bank cannot extract
 monopoly rent. In this article, we examine whether small firms can use
 trade credit if the bank sets a higher interest rate. Using panel data of
 small firms in Japan, our analysis shows that when the interest rate the
 bank sets is too severe or worsened for the borrower, the ratio of trade
 payables increases and the bank loses its amount of loans. This result
 implies that trade creditors alleviate the problems of bank information
 monopolies in Japan. 
Journal: Applied Economics 
Pages: 981-996 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771155 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771155 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:981-996




Template-Type: ReDIF-Article 1.0
Author-Name: Satoru Shimokawa 
Author-X-Name-First: Satoru 
Author-X-Name-Last: Shimokawa 
Title: The labour market impact of body weight in China: a semiparametric analysis 
Abstract:
  While a positive wage effect of Body Mass Index (BMI) is widely observed
 in low-income developing countries, a negative wage effect of BMI is often
 observed in high-income developed countries. To fill the gap between these
 previous findings, we investigate the relationship between body weight and
 wages in transition economies. We focus on China, whose rapid economic
 growth of the 1990s was followed by a rapid increase in overweight and
 obesity while still experiencing significant food insecurity and
 underweight. we first use several parametric regression strategies to
 obtain a consistent estimate of the wage effects of weight. Second, we
 adopt a semiparametric partially linear model that allows for endogeneity
 of weight. Parametric regressions provide mixed results, and the sign and
 magnitude of their estimates are sensitive to the choice of samples and
 regression strategies. Semiparametric estimates provide evidence of a wage
 penalty for very heavy and thin persons among both men and women. The wage
 penalty is more significant among men than among women. Semiparametric
 results also indicate that parametric estimates can overstate and
 misrepresent the wage effects of weight for healthy weight persons due to
 their restrictive functional form assumptions. 
Journal: Applied Economics 
Pages: 949-968 
Issue: 8 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771239 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771239 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:949-968




Template-Type: ReDIF-Article 1.0
Author-Name: Jagadanand Chaudhary 
Author-X-Name-First: Jagadanand 
Author-X-Name-Last: Chaudhary 
Author-Name: Samarendu Mohanty 
Author-X-Name-First: Samarendu 
Author-X-Name-Last: Mohanty 
Author-Name: Sukant Misra 
Author-X-Name-First: Sukant 
Author-X-Name-Last: Misra 
Author-Name: Suwen Pan 
Author-X-Name-First: Suwen 
Author-X-Name-Last: Pan 
Title: The effects of MFA quota elimination on Indian fibre markets 
Abstract:
  This article examines the effects of multi-fibre arrangement (MFA) quota
 elimination on Indian fibre market. The partial equilibrium Indian fibre
 model was developed using a theoretically consistent framework and
 incorporated regional supply response, substitutability between cotton and
 man-made fibres, and appropriate linkage between cotton and textile
 sectors. Baseline projections were developed for supply, demand and prices
 of cotton, man-made fibres and textiles under a set of exogenous
 assumptions. The effects of MFA textile quota eliminations were introduced
 into the model by conducting three scenarios, i.e. increasing textile
 exports by 10, 20 and 30% from the baseline level. The results suggest
 that on an average, cotton imports rise by 4-8% annually, while the
 man-made fibre exports from India decline with the opening of textile
 markets in the developed countries. The higher domestic cotton prices
 encourage acreage expansion in cotton in all the three regions in India,
 but not enough to meet rising mill demand under the scenarios of higher
 textile exports. The rise in cotton imports from India has little effect
 on world cotton prices. 
Journal: Applied Economics 
Pages: 1083-1099 
Issue: 9 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771205 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1083-1099




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Caliendo 
Author-X-Name-First: Marco 
Author-X-Name-Last: Caliendo 
Author-Name: Reinhard Hujer 
Author-X-Name-First: Reinhard 
Author-X-Name-Last: Hujer 
Author-Name: Stephan Thomsen 
Author-X-Name-First: Stephan 
Author-X-Name-Last: Thomsen 
Title: Identifying effect heterogeneity to improve the efficiency of job creation schemes in Germany 
Abstract:
  Previous empirical studies of job creation schemes (JCS) in Germany have
 shown that the average effects for the participating individuals are
 negative. However, we find that this is not true for all strata of the
 population. Identifying individual characteristics that are responsible
 for the effect heterogeneity and using this information for a better
 allocation of individuals therefore bears some scope for improving
 programme efficiency. We present several stratification strategies and
 discuss the occurring effect heterogeneity. Our findings show that JCS do
 neither harm nor improve the labour market chances for most of the groups.
 Exceptions are long-term unemployed men in West and long-term unemployed
 women in East and West Germany who benefit from participation in terms of
 higher employment rates. 
Journal: Applied Economics 
Pages: 1101-1122 
Issue: 9 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840500438897 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438897 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1101-1122




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Fleming 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Fleming 
Author-Name: Parvinder Kler 
Author-X-Name-First: Parvinder 
Author-X-Name-Last: Kler 
Title: I'm too clever for this job: a bivariate probit analysis on overeducation and job satisfaction in Australia 
Abstract:
  Using data from the first wave of the Household, Income and Labour
 Dynamics in Australia data set, this article establishes an empirical
 relationship between overeducation and workplace satisfaction for
 Australian adult males in the labour force. In a departure from much of
 the existing literature, both univariate and bivariate probit models are
 used to account for potential unobserved heterogeneity. We find that
 estimates in the univariate probit models are positively biased for three
 of the six measures of workplace satisfaction studied. This suggests that
 consideration should be given to the use of bivariate models when studying
 the determinants of workplace satisfaction and overeducation. Results
 show, although levels of satisfaction remain high, that across all
 measures of workplace satisfaction overeducated workers are less satisfied
 compared to their nonovereducated counterparts. This intimates that
 satisfaction levels should be viewed from a relative, rather than an
 absolute perspective. 'Pleasure in the job puts perfection in the work'
 Aristotle 384BC-322BC 
Journal: Applied Economics 
Pages: 1123-1138 
Issue: 9 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771254 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771254 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1123-1138




Template-Type: ReDIF-Article 1.0
Author-Name: Donald Schunk 
Author-X-Name-First: Donald 
Author-X-Name-Last: Schunk 
Title: Probability predictions of rising real GDP growth and inflation: the usefulness of monetary indicators 
Abstract:
  Several recent studies have focused on the predictive power of the yield
 spread for future economic activity. The current paper reformulates the
 work of Estrella and Mishkin (1998) by focusing on the usefulness of
 monetary variables for generating probability predictions of rising or
 falling real GDP growth and inflation. Besides redefining the dependent
 variables, the independent monetary variables are allowed to include
 lagged information. Also, the current paper considers the usefulness of
 the Divisia monetary aggregates in the context of probit models for
 predicting the probability that real GDP growth or inflation will be
 increasing 
Journal: Applied Economics 
Pages: 1139-1149 
Issue: 9 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771247 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771247 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1139-1149




Template-Type: ReDIF-Article 1.0
Author-Name: Vitor Ozaki 
Author-X-Name-First: Vitor 
Author-X-Name-Last: Ozaki 
Author-Name: Barry Goodwin 
Author-X-Name-First: Barry 
Author-X-Name-Last: Goodwin 
Author-Name: Ricardo Shirota 
Author-X-Name-First: Ricardo 
Author-X-Name-Last: Shirota 
Title: Parametric and nonparametric statistical modelling of crop yield: implications for pricing crop insurance contracts 
Abstract:
  This article considers alternative methods to calculate the fair premium
 rate of crop insurance contracts based on county yields. The premium rate
 was calculated using parametric and nonparametric approaches to estimate
 the conditional agricultural yield density. These methods were applied to
 a data set of county yield provided by the Statistical and Geography
 Brazilian Institute (IBGE), for the period of 1990 through 2002, for
 soybean, corn and wheat, in the State of Parana. In this article, we
 propose methodological alternatives to pricing crop insurance contracts
 resulting in more accurate premium rates in a situation of limited data. 
Journal: Applied Economics 
Pages: 1151-1164 
Issue: 9 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749680 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749680 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1151-1164




Template-Type: ReDIF-Article 1.0
Author-Name: Tam Bang Vu 
Author-X-Name-First: Tam Bang 
Author-X-Name-Last: Vu 
Title: Foreign direct investment and endogenous growth in Vietnam 
Abstract:
  Foregin Direct Investment's (FDI's) contribution to growth has been a
 controversial topic in economic literature and appears to be country
 specific. In this article, we use time-varying coefficients in an
 augmented production function and let FDI indirectly affect Gross domestic
 product growth through labour productivity. This approach creates built-in
 heteroskedasticity, so the feasible generalized least square estimation is
 employed. The results show that FDI has significant and positive effect on
 labour productivity and economic growth in Vietnam, but the effect is not
 equally distributed among economic sectors. 
Journal: Applied Economics 
Pages: 1165-1173 
Issue: 9 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600749433 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749433 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1165-1173




Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Kuang Ho 
Author-X-Name-First: Tai-Kuang 
Author-X-Name-Last: Ho 
Title: Extremal analysis of currency crises in Taiwan 
Abstract:
  We employ extreme value theory to identify currency crises in Taiwan. The
 new approach is able to identify severe currency crises, and at the same
 time avoid the crisis-misclassification problem of Markov-switching
 models. Signal accounting indicates that currency crises in Taiwan are
 preceded by rapid expansion of domestic credit and other monetary
 aggregates, implying that financial excesses stressed by the
 third-generation crisis model are the main causes of these currency
 crises. 
Journal: Applied Economics 
Pages: 1175-1186 
Issue: 9 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771221 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771221 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1175-1186




Template-Type: ReDIF-Article 1.0
Author-Name: Cho-Min Lin 
Author-X-Name-First: Cho-Min 
Author-X-Name-Last: Lin 
Author-Name: Wan-Hsiu Cheng 
Author-X-Name-First: Wan-Hsiu 
Author-X-Name-Last: Cheng 
Title: Economic determinants of comovement across international stock markets: the example of Taiwan and its key trading partners 
Abstract:
  This study uses the multinomial logit model in which comovements are
 categorized into three outcomes, namely (i) negative comovements, (ii)
 positive comovements and (iii) no comovements, with the purpose of the
 empirical analysis being to investigate the economic determinants that
 affect the comovement relationships in the stock markets for Taiwan and
 four major trading partners (Mainland China, United States, Japan and Hong
 Kong) using daily data covering the period from 1994 to 2004. The period
 under study is further divided into three sub-periods, i.e. the period
 before the Asian financial crisis, that during the Asian financial crisis
 and that after the Asian financial crisis, in order to determine whether
 the factors influencing the comovements in the stock market returns of
 Taiwan and its trading partners actually change over time. In addition,
 this study differs from earlier studies that only emphasized the analysis
 of statistical significance in that it attaches importanace to analysing
 both the statistical and economic significance of the factors affecting
 comovements. The empirical results indicate that, regardless of whether it
 is the period during or after the financial crisis that is being
 considered, the volatility of stock market returns and the rate of change
 in the exchange rate are both important factors that affect comovement. In
 addition, interest rate differentials play an increasingly important role
 in the period after the financial crisis. 
Journal: Applied Economics 
Pages: 1187-1205 
Issue: 9 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771262 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771262 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1187-1205




Template-Type: ReDIF-Article 1.0
Author-Name: Luiz Lima 
Author-X-Name-First: Luiz 
Author-X-Name-Last: Lima 
Author-Name: Jaime de Jesus Filho 
Author-X-Name-First: Jaime de 
Author-X-Name-Last: Jesus Filho 
Title: Further investigation of the uncertain trend in US GDP 
Abstract:
  The presence of deterministic or stochastic trend in US GDP has been a
 continuing debate in the literature of macroeconomics. Ben-David and
 Papell (1995) found evidence in favour of trend stationarity using the
 secular sample of Maddison (1991). More recently, Murray and Nelson (2000)
 correctly criticized this finding arguing that the Maddision data are
 plagued with additive outliers (AO), which bias inference towards
 stationarity. Hence, they propose to set the secular sample aside and
 conduct inference using a more homogeneous but shorter time-span post-WWII
 sample. In this article we re-visit the Maddison data by employing a test
 that is robust against AO's. Our results suggest the US GDP can be
 modelled as trend stationary process 
Journal: Applied Economics 
Pages: 1207-1216 
Issue: 9 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771270 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771270 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1207-1216




Template-Type: ReDIF-Article 1.0
Author-Name: James Kung 
Author-X-Name-First: James 
Author-X-Name-Last: Kung 
Title: Dynamic strategies for fixed-income investment 
Abstract:
  The last 30 years have witnessed an enormous growth in fixed-income
 markets. How long-term fixed-income strategies should be implemented for
 the welfare of investors has become a major concern of bond managers. This
 study makes use of stochastic optimal control to formulate a multi-period
 portfolio selection model and implements it using backward recursion
 algorithm to find numerically the optimal allocation of wealth between
 long- and short-term bonds for an investor with power utility and an
 investment horizon of 10 years. By way of a technical manipulation, this
 study uses the fact that the long rate and the spread (difference between
 long rate and short rate) are uncorrelated to simplify model formulation
 and parameter estimation. The results show that an investor would increase
 his/her holding of short-term bond if his/her investment horizon becomes
 shorter or if he/she is more risk averse, or both. 
Journal: Applied Economics 
Pages: 1341-1354 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771304 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771304 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1341-1354




Template-Type: ReDIF-Article 1.0
Author-Name: Junyi Shen 
Author-X-Name-First: Junyi 
Author-X-Name-Last: Shen 
Author-Name: Yusuke Sakata 
Author-X-Name-First: Yusuke 
Author-X-Name-Last: Sakata 
Author-Name: Yoshizo Hashimoto 
Author-X-Name-First: Yoshizo 
Author-X-Name-Last: Hashimoto 
Title: Is individual environmental consciousness one of the determinants in transport mode choice? 
Abstract:
  This article models negative impact on the environment as one of the
 attributes of transport mode. By this modelling, we are able to examine
 whether individual environmental consciousness of this impact plays a
 significant role in his/her choice of transport mode. A survey data from
 Saito and Onohara Area in Northern Osaka of Japan is used to estimate the
 model with the Heteroscedastic Extreme Value specification. Both of the
 estimated and simulated results imply that individual environmental
 consciousness does influence his/her decision on transport mode choice in
 the sample. Furthermore, the likelihood ratio tests indicate that both the
 utility and scale parameters are not equivalent across sub-samples of
 university commuters, research-facility commuters and residents. The
 results of the comparison across sub-samples suggest that sometimes we may
 learn more from sub-dividing a whole sample into several sub-samples if we
 could distinguish them by their characteristics. 
Journal: Applied Economics 
Pages: 1229-1239 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771296 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771296 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1229-1239




Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Mishra 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Mishra 
Author-Name: Charles Moss 
Author-X-Name-First: Charles 
Author-X-Name-Last: Moss 
Title: Measurement of inequality by components of farm household consumption expenditures 
Abstract:
  Inequality in consumption levels of families, both nationally and
 internationally has been studied by Theil. However, empirical studies that
 measure inequality in farm household consumption, to our knowledge, have
 not been performed. This study measures inequality in farm household
 consumption. In addition, the study also measures inequality in
 consumption based on farm typology and farming region. Results from this
 analysis show consumption inequality among farm households is lower than
 consumption inequality among all other households. Results indicate that
 'other expenditures' component has the highest inequality and 'food and
 household supplies' component has the lowest inequality. Further, farm
 typology has information about difference in consumption expenditures; the
 typology is informative when it comes to the components of consumption
 while the regional decomposition is not. 
Journal: Applied Economics 
Pages: 1241-1252 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600722240 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722240 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1241-1252




Template-Type: ReDIF-Article 1.0
Author-Name: V. Eldon Ball 
Author-X-Name-First: V. Eldon 
Author-X-Name-Last: Ball 
Author-Name: W. A. Lindamood 
Author-X-Name-First: W. A. 
Author-X-Name-Last: Lindamood 
Author-Name: Richard Nehring 
Author-X-Name-First: Richard 
Author-X-Name-Last: Nehring 
Author-Name: Carlos San Juan Mesonada 
Author-X-Name-First: Carlos San Juan 
Author-X-Name-Last: Mesonada 
Title: Capital as a factor of production in OECD agriculture: measurement and data 
Abstract:
  This article provides a farm sector comparison of levels of capital input
 for fourteen OECD countries for the period 1973 to 2002. The starting
 point for construction of a measure of capital input is the measurement of
 capital stock. Estimates of depreciable capital are derived by
 representing capital stock at each point of time as a weighted sum of past
 investments. The weights correspond to the relative efficiencies of
 capital goods of different ages, so that the weighted components of
 capital stock have the same efficiency. Estimates of the stock of land are
 derived from balance sheet data. We convert estimates of capital stock
 into estimates of capital service flows by means of capital rental prices.
 Comparisons of levels of capital input among countries require data on
 relative prices of capital input. We obtain relative price levels for
 capital input via relative investment goods prices, taking into account
 the flow of capital input per unit of capital stock in each country. 
Journal: Applied Economics 
Pages: 1253-1277 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771320 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771320 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1253-1277




Template-Type: ReDIF-Article 1.0
Author-Name: Joaquin Azagra-Caro 
Author-X-Name-First: Joaquin 
Author-X-Name-Last: Azagra-Caro 
Author-Name: Juana Aznar-Marqez 
Author-X-Name-First: Juana 
Author-X-Name-Last: Aznar-Marqez 
Author-Name: Juan Blanco 
Author-X-Name-First: Juan 
Author-X-Name-Last: Blanco 
Title: Interactive vs. non-interactive knowledge production by faculty members 
Abstract:
  In this article, we develop a model of individual choice to study the
 determinants of faculty members allocation of effort between interactive
 and noninteractive activities. This model is tested by using censored and
 discrete choice econometric models to estimate optimum effort allocated to
 interactive activities and real interaction. We conclude, first, that
 individual responds to nonmonetary rather than monetary incentives and to
 the difficulty of producing noninteractive rather than interactive
 knowledge. Second, we detect the possible existence of rationing, since
 optimum effort and real interaction depend on different variables. 
Journal: Applied Economics 
Pages: 1289-1297 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771338 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771338 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1289-1297




Template-Type: ReDIF-Article 1.0
Author-Name: Takanori Ida 
Author-X-Name-First: Takanori 
Author-X-Name-Last: Ida 
Author-Name: Shin Kinoshita 
Author-X-Name-First: Shin 
Author-X-Name-Last: Kinoshita 
Author-Name: Masayuki Sato 
Author-X-Name-First: Masayuki 
Author-X-Name-Last: Sato 
Title: Conjoint analysis of demand for IP telephony: the case of Japan 
Abstract:
  With the recent diffusion of broadband (BB) services, Internet protocol
 (IP) telephony is expected to spread significantly in Japan. This article
 investigates the demand for IP telephony by using conjoint analysis.
 Projecting IP telephony demand also contributes to Japanese
 info-communication policy discussions. Two points are made. First, IP
 telephony is still currently considered an optional supplement or an
 add-on service option of high-speed BB Internet access services in Japan
 rather than a close substitute of existing plain old telephone service
 (POTS). At this point, we find little evidence that many households will
 promptly forsake their fixed line service for IP telephony. Second, we
 conclude that the key condition for the proliferation of IP telephony is
 the complete guarantee of quality of service (QoS), including voice
 quality, number portability, fax usage and emergency access, comparable to
 or exceeding that of existing POTS. 
Journal: Applied Economics 
Pages: 1279-1287 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771312 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771312 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1279-1287




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Villaverde 
Author-X-Name-First: Jose 
Author-X-Name-Last: Villaverde 
Author-Name: Adolfo Maza 
Author-X-Name-First: Adolfo 
Author-X-Name-Last: Maza 
Title: Productivity convergence in the European regions, 1980-2003: a sectoral and spatial approach 
Abstract:
  This article analyses the evolution of the EU productivity between 1980
 and 2003, both across regions and sectors. By making use of various
 techniques (cross-section, nonparametric and spatial approaches) it
 concludes that: (1) the regional and sectoral dispersion of productivity
 is quite high; (2) the gains experienced in aggregate productivity are due
 entirely to the sectors productivity growth effect; (3) there is a weak
 beta-convergence process at the aggregate and sectoral levels; (4) the
 accounting decomposition of the aggregate productivity convergence process
 reveals the sectoral productivity growth effect to be the only responsible
 factor for regional catching-up; (5) finally, there are clear signs of
 spatial dependence which, when properly addressed, increase the speed of
 convergence at the aggregate level. 
Journal: Applied Economics 
Pages: 1299-1313 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1299-1313




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Cameron 
Author-X-Name-First: Samuel 
Author-X-Name-Last: Cameron 
Title: E-Baying for blood?: noncompetitive flexible pricing in entertainment ticketing-some demand side evidence 
Abstract:
  This article gives some exploratory results from estimating a consumer
 surplus type equation which features a number of economic and demographic
 variables as regressors. We calculate an income elasticity for the maximum
 surplus that individuals would ever perceive themselves to be getting by
 being allowed to buy at a set price. The results also show that those who
 attend the cinema are significantly less inclined to generate a surplus in
 flexible price events markets whilst young adults offer to pay quite a
 large amount more for their heavily desired entertainment. This suggests
 that part of the burden of a shift in ticket pricing methods may be borne
 by the parents of young adults. 
Journal: Applied Economics 
Pages: 1315-1322 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1315-1322




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Manuel Cordero-Ferrera 
Author-X-Name-First: Jose Manuel 
Author-X-Name-Last: Cordero-Ferrera 
Author-Name: Francisco Pedraja-Chaparro 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Pedraja-Chaparro 
Author-Name: Javier Salinas-Jimenez 
Author-X-Name-First: Javier 
Author-X-Name-Last: Salinas-Jimenez 
Title: Measuring efficiency in education: an analysis of different approaches for incorporating non-discretionary inputs 
Abstract:
  Measuring efficiency in the education sector is a highly complex task.
 One of the reasons is that the main resource of schools (the type of
 students they have) lie outside of their control, which means that it must
 be treated differently to other factors in analysis. This study examines
 the different options available in the literature for incorporating
 non-controllable inputs in a data envelopment analysis in order to
 determine the most appropriate model for evaluating schools. Our empirical
 study presents the results obtained using the model proposed by Fried et
 al. (1999), though we use bootstrap techniques to avoid problems of bias
 in the estimations. 
Journal: Applied Economics 
Pages: 1323-1339 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1323-1339




Template-Type: ReDIF-Article 1.0
Author-Name: Katharina Wrohlich 
Author-X-Name-First: Katharina 
Author-X-Name-Last: Wrohlich 
Title: The excess demand for subsidized child care in Germany 
Abstract:
  The extension of publicly provided or subsidized child care is currently
 one of the priorities of the political agenda in many European countries.
 In this article, the excess demand for subsidized child care slots in
 Germany is estimated using a partial observability model. The results show
 that there is considerable excess demand for child care for children aged
 less than 3 years in East and West Germany, even among children with
 working mothers. 
Journal: Applied Economics 
Pages: 1217-1228 
Issue: 10 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771288 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771288 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1217-1228




Template-Type: ReDIF-Article 1.0
Author-Name: James Payne 
Author-X-Name-First: James 
Author-X-Name-Last: Payne 
Author-Name: George Waters 
Author-X-Name-First: George 
Author-X-Name-Last: Waters 
Title: Interest rate pass through and asymmetric adjustment: evidence from the federal funds rate operating target period 
Abstract:
  This study examines the long-run interest rate pass through of the
 federal funds rate to the prime rate and whether there is asymmetric
 adjustment in the prime rate using the Enders-Siklos (2001) momentum
 threshold autoregressive model over the period February 1987 to October
 2005. Once allowance is made for the endogenously determined structural
 break in the cointegrating relationship in April 1996, the adjustment of
 the prime rate to changes in the federal funds rate appears asymmetric
 with upward rigidity, a result contrary to previous studies which found
 that the prime rate exhibits downward rigidity. The finding of upward
 rigidity in the prime rate lends support for the customer reaction and
 adverse selection hypotheses. Moreover, the empirical evidence seems to
 support the observation of increased pass through as a result of
 heightened competition in the banking industry as well as the Federal
 Reserve's enhanced transparency in monetary policy during the 1990s. 
Journal: Applied Economics 
Pages: 1355-1362 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600806233 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600806233 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1355-1362




Template-Type: ReDIF-Article 1.0
Author-Name: Saziye Gazioglu 
Author-X-Name-First: Saziye 
Author-X-Name-Last: Gazioglu 
Title: Stock market returns in an emerging financial market: Turkish case study 
Abstract:
  Increased globalization in financial markets implies that the percentage
 of all shares under foreign ownership in domestic stock markets has been
 rising. The recent speculative attacks on the foreign exchange market in
 November 2000, followed by February 2001, led Turkey into a deep economic
 crisis. Real stock returns as an important indicator for a forthcoming or
 pending financial crisis, using net capital flows have already been
 established in Gazioglu (2003). In this article we explore the effects of
 capital inflows and outflows to real exchange rates and the real stock
 market returns, before, and after the financial crisis. We investigate the
 relationship between real exchange rate, real stock returns and capital
 flows. We decompose the foreign flows into real assets and liabilities, in
 order to investigate the possible long-term effect of inflows and
 outflows. Empirical investigation shows that the long-term relationship
 only appears between the real exchange rates and the real bank liabilities
 owned by the foreigners. The first half of the sub-period, which is the
 pre-crisis period, is dominated by capital inflows and outflows. These
 affect the real exchange rate whereas the second sub-period, which is the
 post-crisis period, is dominated by unstable the capital inflow and
 outflows causing the decline of real stock market returns and the
 depreciation of the currency. The post-financial crisis period
 demonstrates a long-lasting effect on lowering the stock market returns.
 This confirms the theoretical findings of this article. 
Journal: Applied Economics 
Pages: 1363-1372 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600820663 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820663 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1363-1372




Template-Type: ReDIF-Article 1.0
Author-Name: W. Groot 
Author-X-Name-First: W. 
Author-X-Name-Last: Groot 
Author-Name: H. M. van den Brink 
Author-X-Name-First: H. M. 
Author-X-Name-Last: van den Brink 
Title: Health-adjusted life expectancy of the British population 
Abstract:
  In this article, changes in the quality of health-adjusted life
 expectancy of the British population between 1991 and 1998 are analysed.
 It is found that at all given age levels, life expectancy increased during
 this period. Life expectancy at birth increased by 1 year for women and by
 1.5 years for men. It is further found that the prevalence of health
 problems and handicaps increased during the 1990s. For all age categories,
 the self-assessment of the health status showed that the quality of health
 also declined on average. We concluded that the quality-adjusted life
 expectancy between 1991 and 1998 showed a decrease rather than an
 increase. 
Journal: Applied Economics 
Pages: 1373-1386 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600820671 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820671 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1373-1386




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Paez-Farrell 
Author-X-Name-First: Juan 
Author-X-Name-Last: Paez-Farrell 
Title: Assessing sticky price models using the Burns and Mitchell approach 
Abstract:
  This article evaluates sticky-price models using the methods proposed by
 Burns and Mitchell, focusing on the monetary aspects of the business
 cycle. Recent research has emphasized the responses of models to shocks at
 the expense of its systematic component. Whereas sticky-price models have
 been successful at replicating impulse response functions from vector
 autoregressions, this article highlights that they are unable to mimic the
 data for nominal variables. Moreover, the results are robust to the
 specification of the Phillips curve, including its backward-looking
 variant, calibrated values and the inclusion of fiscal policy shocks.
 Since being able to mimic the data is the lowest hurdle a Model must pass,
 these results pose a challenge for sticky price models. 
Journal: Applied Economics 
Pages: 1387-1397 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600794363 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1387-1397




Template-Type: ReDIF-Article 1.0
Author-Name: Colin Kirkpatrick 
Author-X-Name-First: Colin 
Author-X-Name-Last: Kirkpatrick 
Author-Name: Kenichi Shimamoto 
Author-X-Name-First: Kenichi 
Author-X-Name-Last: Shimamoto 
Title: The effect of environmental regulation on the locational choice of Japanese foreign direct investment 
Abstract:
  This article assesses the impact of environmental regulation (ER) in host
 countries on Japanese foreign direct investment (FDI) decision-making. It
 tests the pollution haven hypothesis using data on national (ER) standards
 and Japanese inward FDI in five dirty industries (iron and steel industry,
 nonferrous metals industry, chemicals industry, paper and pulp industry,
 nonmetallic products industry). The results do not support the pollution
 hypothesis. On the contrary, inward Japanese FDI appears to be attracted
 to countries which have committed themselves to a transparent and stable
 environment regulatory environment, suggesting that the quality of the
 regulatory framework in terms of its certainty and transparency has a
 greater influence on foreign investors' choice of location than the level
 of environmental regulatory measures. 
Journal: Applied Economics 
Pages: 1399-1409 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600794330 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794330 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1399-1409




Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Fabbri 
Author-X-Name-First: Daniele 
Author-X-Name-Last: Fabbri 
Author-Name: Chiara Monfardini 
Author-X-Name-First: Chiara 
Author-X-Name-Last: Monfardini 
Title: Style of practice and assortative mating: a recursive probit analysis of Caesarean section scheduling in Italy 
Abstract:
  We study practice variation in scheduling of caesarean section (CS)
 delivery across public and private hospitals in Italy. Adopting a novel
 perspective, we look at the role played by patients' preferences for the
 treatment. The recursive probit model is revisited as a useful tool to
 assess the presence of assortative mating of patients and provider driven
 by style of practice. According to our evidence, the propensity to
 schedule a CS is codetermined with patient self-sorting into hospital
 types. We measure a significantly higher inclination to practice CS
 scheduling in private hospitals and conclude that assortative mating is of
 minor relevance in our case, even if we cannot exclude it to be present. 
Journal: Applied Economics 
Pages: 1411-1423 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771395 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771395 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1411-1423




Template-Type: ReDIF-Article 1.0
Author-Name: Aquiles Elie Guimaraes Kalatzis 
Author-X-Name-First: Aquiles Elie 
Author-X-Name-Last: Guimaraes Kalatzis 
Author-Name: Carlos Roberto Azzoni 
Author-X-Name-First: Carlos Roberto 
Author-X-Name-Last: Azzoni 
Author-Name: Jorge Alberto Achcar 
Author-X-Name-First: Jorge Alberto 
Author-X-Name-Last: Achcar 
Title: Financial constraints and investment decisions: evidence from a highly unstable emerging economy 
Abstract:
  This study analyses the role of financial constraints on the investment
 decisions of 497 Brazilian firms. We use panel data, with firm-specific
 information for different years, allowing for the abandonment of the
 representative firm model. Information on capital intensity at the firm
 level is used to group firms. We estimate different models and the results
 suggest the presence of financial restrictions, especially for
 capital-intensive firms. 
Journal: Applied Economics 
Pages: 1425-1434 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771379 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1425-1434




Template-Type: ReDIF-Article 1.0
Author-Name: M. Angeles Diaz 
Author-X-Name-First: M. 
Author-X-Name-Last: Angeles Diaz 
Author-Name: Rosario Sanchez 
Author-X-Name-First: Rosario 
Author-X-Name-Last: Sanchez 
Title: Temporary contracts and young women in Spain 
Abstract:
  In this article we analyse the determinants of temporary employment
 through a balanced panel of workers from 1995 to 2000. First, we estimate
 a panel with 1267 individuals with ages ranging from 16 to 65 years. We
 obtain that the probability of having a temporary contract increases for
 people younger than 46 years old. Secondly, we estimate separately the
 sample of people younger than 46 years old and we obtain that the
 probability of temporality increases for young people with university
 level of education. More interestedly, the probability of being in a
 temporary contract is smaller for young women that for young men in Spain. 
Journal: Applied Economics 
Pages: 1435-1442 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600771387 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771387 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1435-1442




Template-Type: ReDIF-Article 1.0
Author-Name: Margarita Genius 
Author-X-Name-First: Margarita 
Author-X-Name-Last: Genius 
Author-Name: Elisabetta Strazzera 
Author-X-Name-First: Elisabetta 
Author-X-Name-Last: Strazzera 
Title: Applying the copula approach to sample selection modelling 
Abstract:
  The limited availability of tractable multivariate distributions
 undermines the validity of the standard parametric approach to sample
 selection modelling. Copula distributions can be very useful in situations
 where the applied researcher has a prior on the distributional form of the
 margins, since the modelling of the latter is separated from that of the
 dependence structure. The present article first presents an application to
 female work data. Afterwards, the approach is analysed in an application
 to contingent valuation data on recreational values of forests. It is
 shown that the copula approach is especially beneficial in case of strong
 departures from the hypothesis of normality. 
Journal: Applied Economics 
Pages: 1443-1455 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600794348 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794348 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1443-1455




Template-Type: ReDIF-Article 1.0
Author-Name: Kuo-Liang Wang 
Author-X-Name-First: Kuo-Liang 
Author-X-Name-Last: Wang 
Author-Name: Shu-Ching Wang 
Author-X-Name-First: Shu-Ching 
Author-X-Name-Last: Wang 
Title: Profitability, concentration, imports and exports: the case of Taiwan's midstream petrochemical industries 
Abstract:
  Based on an open-economy oligopoly model, causalities among domestic
 firms' price-cost margin (PCM), domestic concentration, import and export
 shares are derived and a simultaneous-equation system is established. By
 utilizing the 1989-1997 data of Taiwan's midstream petrochemical
 industries, three-stage least squares is used to estimate the system. The
 empirical results confirm the derived results, and demonstrate: (1) there
 exist simultaneous relationships among domestic PCM, domestic
 concentration, import and export shares; (2) import concentration affects
 domestic concentration positively, but affects domestic PCM, import and
 export shares negatively; (3) diversifying international markets improves
 domestic firms' PCM; (4) domestic firms seem to be in a situation of
 collusion. 
Journal: Applied Economics 
Pages: 1457-1473 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600820697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1457-1473




Template-Type: ReDIF-Article 1.0
Author-Name: Adelina Gschwandtner 
Author-X-Name-First: Adelina 
Author-X-Name-Last: Gschwandtner 
Author-Name: Michael Hauser 
Author-X-Name-First: Michael 
Author-X-Name-Last: Hauser 
Title: Modelling profit series: nonstationarity and long memory 
Abstract:
  The dynamic structure of profit rates for 156 US manufacturing companies
 is analysed by means of fractional integration techniques as an
 alternative to the commonly used ARIMA models with respect to the
 'persistence of profits'. Thereby the pseudo-spectral density aproach of
 Velasco and Robinson together with model selection criteria is applied.
 The results show-despite the short lengths of the series and tests for the
 integer degrees of integration (d = 0, 1)-that 35.5% of the series may be
 well-approximated by long-range dependent processes, and 54% are
 nonstationary. This is a confirmation of the strong challenge to the
 competitive environment hypothesis obtained by previous studies. 
Journal: Applied Economics 
Pages: 1475-1482 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600794355 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794355 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1475-1482




Template-Type: ReDIF-Article 1.0
Author-Name: Evens Salies 
Author-X-Name-First: Evens 
Author-X-Name-Last: Salies 
Title: Mergers in the GB electricity market: effects on retail charges 
Abstract:
  The opening up of the UK residential electricity sector in 1999 prompted
 several studies of the impact this had on both the level and structuring
 of retail charges, and on incumbent players' market power. Drawing on
 observations of regional tariffs for the month of January 2004, this
 article supports previous conclusions based on simulated retail charges,
 looking at the response of real tariffs to distribution and transmission
 costs, customer density and the length of low voltage underground circuit.
 We also investigate whether vertically integrated suppliers have a
 particular effect on charges ceteris paribus the effect of cost drivers
 and supplier-related factors. 
Journal: Applied Economics 
Pages: 1483-1490 
Issue: 11 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600794322 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794322 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1483-1490




Template-Type: ReDIF-Article 1.0
Author-Name: D. Furceri 
Author-X-Name-First: D. 
Author-X-Name-Last: Furceri 
Author-Name: G. Karras 
Author-X-Name-First: G. 
Author-X-Name-Last: Karras 
Title: Business-cycle synchronization in the EMU 
Abstract:
  This article asks whether the business cycles of the EU countries have
 become more or less synchronized after the introduction of the euro. Our
 findings show that all countries in our EU sample are better synchronized
 with the EMU-wide economy in the post-EMU period than they were before the
 euro. We also show that this increase in synchronization is present in all
 components of aggregate demand, as well as two supply-side variables, but
 it is more pronounced in the trade components (imports and, particularly,
 exports). It is also shown that the increase in trade within the EMU area
 is at least partly responsible for the increase in cyclical
 synchronization. 
Journal: Applied Economics 
Pages: 1491-1501 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600843954 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843954 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1491-1501




Template-Type: ReDIF-Article 1.0
Author-Name: Jose-Luis Fernandez 
Author-X-Name-First: Jose-Luis 
Author-X-Name-Last: Fernandez 
Author-Name: J. Forder 
Author-X-Name-First: J. 
Author-X-Name-Last: Forder 
Title: Consequences of local variations in social care on the performance of the acute health care sector 
Abstract:
  This article uses 2 years worth of data from 150 English local
 authorities to quantify the extent to which local variations in social
 care resources are associated with variations in performance of the acute
 sector, and particularly on the rates of hospital delayed discharges and
 hospital emergency re-admissions. Results indicate that social care
 services play a significant role in explaining local variations in acute
 sector performance. 
Journal: Applied Economics 
Pages: 1503-1518 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600843939 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843939 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1503-1518




Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Borrmann 
Author-X-Name-First: Jorg 
Author-X-Name-Last: Borrmann 
Title: Awarding monopoly franchises repeatedly: are second-best block-rate tariffs attainable without regulation? 
Abstract:
  Under economies of scale, Demsetz's (1968) proposal of franchise bidding
 results, at best, in uniform prices approaching average cost. This article
 questions the accepted belief that the auctioneer always needs to know the
 market demand function, if the concept is modified so as to allow for bids
 consisting of block-rate tariffs in order to increase welfare. Given a
 setting of repeated auctions, the auctioneer can apply a sequential
 mechanism to evaluate bids, instead of evaluating them in each auction
 independently. We characterize the conditions under which a second-best
 block-rate tariff for given thresholds is approached in equilibrium. 
Journal: Applied Economics 
Pages: 1519-1528 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600829144 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600829144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1519-1528




Template-Type: ReDIF-Article 1.0
Author-Name: Liu Zhentao 
Author-X-Name-First: Liu 
Author-X-Name-Last: Zhentao 
Title: Testing the liquidity effect with equilibrium interest rate 
Abstract:
  We examine the existence of liquidity effects by using the equilibrium
 interest rates estimated from the disequilibrium analysis instead of the
 observed interest rate. The use of equilibrium interest rates allows us to
 take the growth rate in the money supply as being exogenous and circumvent
 the identification problem away. Following the traditional AR model and
 the method proposed by Hamilton (1997), we obtain evidences showing the
 negative relationship between the equilibrium interest rate and the growth
 rate in money supply. 
Journal: Applied Economics 
Pages: 1529-1535 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600820689 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820689 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1529-1535




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Lange 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Lange 
Title: A decomposition of the predictive content of the term structure for output growth in Canada 
Abstract:
  The purpose of this study is to identify the underlying economic
 disturbances that drive the predictive content of the term structure for
 future output growth and those that may distort its information content.
 The study uses a structural vector autoregressive (VAR) model of a small
 and open economy for Canada that takes into account its relationship with
 financial markets in the USA and that Canada is a relatively large
 exporter of commodities. The model is used to decompose the sources of the
 variation of the slope of the yield curve and the correlation between the
 term spread and output growth. Monetary policy disturbances in both Canada
 and the USA, as well as short-term interest rates, are found to trigger
 excessive volatility in short-term rates and the term spread that do not
 contribute to the predictive content of the term spread for future output
 growth at horizons relevant for monetary policy analysis. However,
 innovations in output growth, inflation and other macroeconomic variables
 do not distort the forecast power of the term spread. Unlike the evidence
 for the USA, disturbances in nominal long-term yields are found to
 contribute about the same amount to the predictive content of the term
 spread as unexpected movements in monetary policy. 
Journal: Applied Economics 
Pages: 1537-1545 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600820705 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820705 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1537-1545




Template-Type: ReDIF-Article 1.0
Author-Name: Olugbenga Onafowora 
Author-X-Name-First: Olugbenga 
Author-X-Name-Last: Onafowora 
Author-Name: Oluwole Owoye 
Author-X-Name-First: Oluwole 
Author-X-Name-Last: Owoye 
Title: Exchange rate volatility and export growth in Nigeria 
Abstract:
  This article examines the impact of exchange rate volatility on Nigeria's
 exports to its most important trading-partner-the United States over the
 quarterly period January 1980 to April 2001. Using cointegration and
 vector error correction (VECM) framework, empirical tests indicate the
 presence of a unique cointegrating vector linking real exports, real
 foreign income, relative export prices and real exchange rate volatility
 in the long run. Furthermore, the results show that increases in the
 volatility of the real exchange rate raise uncertainty about profits to be
 made which exert significant negative effects on exports both in the
 short- and long-run. Our results also show that improvements in the terms
 of trade (represented by declines in the real exchange rate) and real
 foreign income exert positive effects on export activity. Most
 importantly, we found that the trade liberalization and economic reform
 policies implemented in the post-1986 structural adjustment period
 contributed to Nigeria's export performance. Overall, our findings suggest
 that Nigeria's exporting activities can be further boosted by policies
 aimed at achieving and maintaining a stable competitive real exchange
 rate. 
Journal: Applied Economics 
Pages: 1547-1556 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600827676 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600827676 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1547-1556




Template-Type: ReDIF-Article 1.0
Author-Name: Par Osterholm 
Author-X-Name-First: Par 
Author-X-Name-Last: Osterholm 
Title: A structural Bayesian VAR for model-based fan charts 
Abstract:
  Inflation forecast uncertainty is of importance for a wide range of
 agents in the economy, central banks in particular. Ways to describe and
 account for this uncertainty in a consistent manner have received
 increasing attention of late, in part due to the growing number of
 inflation-targeting central banks. This article develops a large
 structural VAR for the Swedish economy and estimates it in a Bayesian
 framework. The methodology permits not only structural interpretation and
 analysis but offers a natural way to formalize forecast uncertainty, as
 the posterior predictive density from the model has the interpretation of
 a fan chart. 
Journal: Applied Economics 
Pages: 1557-1569 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600843947 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843947 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1557-1569




Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda 
Author-X-Name-First: Kosei 
Author-X-Name-Last: Fukuda 
Title: Detection of switching cointegration rank allowing for switching lag structure: an application to money-demand function 
Abstract:
  A new method is developed for detecting regime switches between
 cointegration and no-cointegration at unknown times allowing for switching
 lag structure. In this method, time-series observations are divided into
 several segments, and a regression model with or without cointegration is
 fitted to each segment. The goodness of fit of the global model composed
 of these local models is evaluated using the corresponding modified
 information criterion, and the division which minimizes this criterion
 defines the best model. Simulation results suggest that the proposed
 method works well. Empirical results indicate that money demand is well
 described by the proposed method in Canada, UK and Japan. 
Journal: Applied Economics 
Pages: 1571-1582 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600843962 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843962 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1571-1582




Template-Type: ReDIF-Article 1.0
Author-Name: Yue Ma 
Author-X-Name-First: Yue 
Author-X-Name-Last: Ma 
Author-Name: Ying Chu Ng 
Author-X-Name-First: Ying 
Author-X-Name-Last: Chu Ng 
Title: Bootstrapping statistical inferences of decomposition methods for gender earnings differentials 
Abstract:
  Applying the standard bootstrapping technique with corrections for
 heteroskedasticity for a sample of the 1997 Urban Household Survey in
 China, the present article attempts to test (1) whether the commonly used
 decomposition methods for gender earnings differentials give significantly
 different results and (2) whether the explained component is significantly
 different from the unexplained component (which is commonly referred to as
 discrimination) within each decomposition method. Based on a national data
 set, the empirical results indicated some significant differences in both
 tests. The implication of the results is that the proposed bootstrapping
 technique can be regarded as a guideline on applying which approach to
 decompose gender earnings differentials among different methods without
 losing important information, and on evaluating the relative importance of
 the decomposition components for any chosen method. 
Journal: Applied Economics 
Pages: 1583-1593 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600843970 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843970 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1583-1593




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Lawrance 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Lawrance 
Author-Name: Robert Marks 
Author-X-Name-First: Robert 
Author-X-Name-Last: Marks 
Title: Firm size distributions in an industry with constrained resources 
Abstract:
  We propose an equilibrium model for firm size distribution in an industry
 with a constrained essential input. The model applies when the population
 of firms is small and homogeneous and the supply of the necessary input
 factor is perfectly inelastic. We argue that although the Gibrat
 assumption obtains, this does not result in the lognormal distribution
 because of the entries, exits and mergers of firms competing for the
 inelastic essential resource. Using our own 32-year database of firms, we
 test the broken-stick, or random-ordered-interval, model that we call the
 Whitworth distribution, successfully applied by others to a number of data
 sets, including the abundances of bird species. We propose the Whitworth
 as the basic model of the equilibrium distribution of firm sizes for such
 supply-constrained industries, and find it fits our 31-year database best. 
Journal: Applied Economics 
Pages: 1595-1607 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600843988 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843988 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1595-1607




Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Bajo-Rubio 
Author-X-Name-First: Oscar 
Author-X-Name-Last: Bajo-Rubio 
Author-Name: Carmen Diaz-Roldan 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Diaz-Roldan 
Author-Name: Vicente Esteve 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Esteve 
Title: US deficit sustainability revisited: a multiple structural change approach 
Abstract:
  In this article we re-examine the long-run sustainability of US budget
 deficits, using Bai and Perron's multiple structural change approach.
 While the deficit would have been weakly sustainable over the full sample
 (1947:1-2005:3), strong sustainability would appear only between January
 1982 and February 1996. 
Journal: Applied Economics 
Pages: 1609-1613 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600843996 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843996 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1609-1613




Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh 
Author-X-Name-First: Tarlok 
Author-X-Name-Last: Singh 
Title: Financial development and economic growth nexus: a time-series evidence from India 
Abstract:
  This study examines the relationship between financial development and
 economic growth in India for the period 1951-52 to 1995-96. The long-run
 equilibrium and short-run dynamic models are estimated using financial
 interrelations ratio and new issue ratio as the measures of financial
 development, a la Goldsmith (1969). The Johansen (1991) estimator rejects
 the null of zero cointegrating vector and shows the presence of long-run
 equilibrium relationship between financial development and economic
 growth. The error correction model, impulse response and variance
 decomposition analyses (Sims, 1980), and the Toda and Yamamoto (1995)
 estimator show the presence of bidirectional Granger-causality between
 financial development and economic growth. The presence of bidirectional
 Granger-causality suggested by these estimators points towards the
 possible problem of endogeneity and simultaneity bias in the growth models
 that examine the contemporaneous effect of financial development on
 economic growth. The economic reforms that started since July 1991
 emphasized on the liberalization and development of financial sector to
 supplement the efforts aimed at achieving high economic growth in India. 
Journal: Applied Economics 
Pages: 1615-1627 
Issue: 12 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600892886 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600892886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1615-1627




Template-Type: ReDIF-Article 1.0
Author-Name: Yuqing Zheng 
Author-X-Name-First: Yuqing 
Author-X-Name-Last: Zheng 
Author-Name: Henry Kinnucan 
Author-X-Name-First: Henry 
Author-X-Name-Last: Kinnucan 
Author-Name: Henry Thompson 
Author-X-Name-First: Henry 
Author-X-Name-Last: Thompson 
Title: News and volatility of food prices 
Abstract:
  Financial markets exhibit an asymmetric news effect with unexpected low
 prices generating more price volatility than 'news' of high prices. The
 present study examines US food markets for such asymmetric news effects.
 Analysis of 25 years of monthly data for 45 retail food items shows that
 price news destabilizes about a third of the markets with unexpected price
 increases more destabilizing. 
Journal: Applied Economics 
Pages: 1629-1635 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600892910 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600892910 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1629-1635




Template-Type: ReDIF-Article 1.0
Author-Name: Shaikh Hamid 
Author-X-Name-First: Shaikh 
Author-X-Name-Last: Hamid 
Author-Name: Tej Dhakar 
Author-X-Name-First: Tej 
Author-X-Name-Last: Dhakar 
Title: The behaviour of the US consumer price index 1913-2003: a study of seasonality in the monthly US CPI 
Abstract:
  This article analyses the seasonality in the monthly consumer price index
 (CPI) over the period January 1913 to December 2003. We examine three
 types of month effects: if the mean of monthly CPI changes of the entire
 data set, and of a given month were significantly different from zero; if
 the mean of monthly CPI changes of a given month was different from the
 mean of the other months; and if the variance of the monthly CPI changes
 for a given month was different from the variance of the other months. The
 mean of monthly CPI changes for the entire data set (0.27%) was found to
 be significantly greater than zero. The means of monthly changes show a
 downward trend from September to December. When the data are sliced into
 three sub-periods, we find an increasing trend in the means and medians of
 monthly changes but a decreasing trend in the SDs of the monthly changes.
 The mean of monthly CPI changes during the republican presidencies (0.15%)
 was significantly lower than during the democratic presidencies (0.38%). 
Journal: Applied Economics 
Pages: 1637-1650 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905159 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905159 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1637-1650




Template-Type: ReDIF-Article 1.0
Author-Name: Alvaro Aguiar 
Author-X-Name-First: Alvaro 
Author-X-Name-Last: Aguiar 
Author-Name: Manuel Martins 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Martins 
Title: Testing for asymmetries in the preferences of the euro-area monetary policymaker 
Abstract:
  This article tests for asymmetries in the preferences of the euro-area
 monetary policymaker with 1995:1-2005:2 data from the latest update of the
 European Central Bank's (ECB's) Area-wide database. Following the relevant
 literature, we distinguish between three types of asymmetry: precautionary
 demand for expansions, precautionary demand for price stability and
 interest rate smoothing asymmetry. Based on the joint generalized method
 of moments (GMM) estimation of the Euler equation of optimal policy and
 the aggregate supply-aggregate demand (AS-AD) structure of the
 macroeconomy, we find evidence of precautionary demand for price stability
 in the preferences revealed by the monetary policymaker. This type of
 asymmetry is consistent with the ECB's definition of price stability and
 with the priority of credibility-building by a recently created monetary
 authority. 
Journal: Applied Economics 
Pages: 1651-1667 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600870999 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600870999 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1651-1667




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Ezcurra 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Ezcurra 
Author-Name: Belen Iraizoz 
Author-X-Name-First: Belen 
Author-X-Name-Last: Iraizoz 
Author-Name: Pedro Pascual 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Pascual 
Author-Name: Manuel Rapun 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Rapun 
Title: Spatial disparities in the European agriculture: a regional analysis 
Abstract:
  This article examines the territorial imbalances in European agriculture
 during the period 1980 to 2001, by means of the information provided by
 various methodological instruments which allow us to overcome the
 drawbacks of conventional convergence analysis. The results obtained
 reveal that the regional distribution of productivity in the agricultural
 sector is characterized by the presence of positive spatial dependence.
 This fact implies that the European regions in close spatial proximity
 register similar levels of the variable under study, which highlights the
 relevance of geographical location in this context. The empirical evidence
 presented also shows that regional disparities have remained almost
 constant during the time interval considered. However, the increase in
 density around the European average explains the observed reduction in the
 degree of bipolarization, while intra-distribution mobility is relatively
 limited. Finally, the analysis carried out allows us to assess the role of
 variables such as country of origin, investment per worker in the
 agricultural sector, regional per capita income or the size of the
 agrifood industry, in explaining the dynamics of the distribution under
 analysis. 
Journal: Applied Economics 
Pages: 1669-1684 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905175 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905175 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1669-1684




Template-Type: ReDIF-Article 1.0
Author-Name: Yuan-Hung Hsu Ku 
Author-X-Name-First: Yuan-Hung Hsu 
Author-X-Name-Last: Ku 
Title: Student-t distribution based VAR-MGARCH: an application of the DCC model on international portfolio risk management 
Abstract:
  Significant second-moment transmission effects and obvious time-varying
 patterns of correlation coefficients among major equity and currency
 markets in the US, Japan and the UK are found to exist. Such observations
 inspire the time-varying setting of dynamic conditional correlation
 coefficients in MGARCH models. On the other hand, the multivariate
 Student-t distribution is suitable for analysing the visible leptokurtosis
 that is common in financial markets. Both are important for international
 portfolio risk management. Thus, a comparison on the hedging efficiency of
 hypothetical portfolios consisting of stock and currency future positions
 is conducted in order to justify the multivariate Student-t distribution
 based on the DCC-MGARCH model. 
Journal: Applied Economics 
Pages: 1685-1697 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600892894 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600892894 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1685-1697




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Jara-Diaz 
Author-X-Name-First: Sergio 
Author-X-Name-Last: Jara-Diaz 
Author-Name: Beatriz Tovar 
Author-X-Name-First: Beatriz 
Author-X-Name-Last: Tovar 
Author-Name: Lourdes Trujillo 
Author-X-Name-First: Lourdes 
Author-X-Name-Last: Trujillo 
Title: On the proper modelling of multioutput port cargo handling costs 
Abstract:
  Cargo handling activities involve various heterogeneous outputs, e.g.
 general cargo, containers, dry and liquid bulk and so on. These activities
 in ports, however, have been usually analysed using aggregate descriptions
 of output such as total tons moved. The main purpose of this article is to
 show that ignoring this heterogeneity may lead to two types of problems:
 (i) the underestimation of the relevance of key dimensions (i.e. marginal
 costs per product and economies of scope) and (ii) a bias in the estimates
 of the relevance of other dimensions (economies of scale). To do so, we
 rely on a unique new dataset on three cargo handling firms operating in a
 Spanish port between 1991 and 1999. We use it to estimate both a
 multi-output cost for these three operators, as well as an aggregate cost
 function. The policy conclusions are derived from an explicit and detailed
 comparison of these two sets of estimates. 
Journal: Applied Economics 
Pages: 1699-1705 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600892902 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600892902 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1699-1705




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Luis Fernandez-Serrano 
Author-X-Name-First: Jose Luis 
Author-X-Name-Last: Fernandez-Serrano 
Author-Name: M. Dolores Robles-Fernandez 
Author-X-Name-First: M. Dolores 
Author-X-Name-Last: Robles-Fernandez 
Title: Time-series model forecasts and structural breaks: evidence from Spanish pre-EMU interest rates 
Abstract:
  Analysis of the future behaviour of economic variables can be biased if
 structural breaks are not considered. When these structural breaks are
 present, the in-sample fit of a model gives us a poor guide to ex ante
 forecast performance. This problem is true for both univariate and
 multivariate analysis and can be extremely important when co-integration
 relationships are analysed. The main goal of this article is to analyse
 the impact of structural breaks on forecast accuracy evaluation. We focus
 on forecasting several interest rates from the Spanish interbank money
 market. In order to carry out the analysis, we perform two forecasting
 exercises: (a) without structural breaks and (b) when structural breaks
 are explicitly considered. We use new sequential methods in order to
 estimate change-points in an endogenous way. This method allows us to
 detect structural breaks in all four rates in May 1993. However, the
 effects of these breaks are not very strong, since we found scarce gains
 in forecasting accuracy when the structural breaks are included in the
 models. 
Journal: Applied Economics 
Pages: 1707-1721 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600895640 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600895640 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1707-1721




Template-Type: ReDIF-Article 1.0
Author-Name: Atsushi Yoshida 
Author-X-Name-First: Atsushi 
Author-X-Name-Last: Yoshida 
Author-Name: Young-Sook Kim 
Author-X-Name-First: Young-Sook 
Author-X-Name-Last: Kim 
Title: Sharing health risk and income risk within households: evidence from Japanese data 
Abstract:
  The question of which household members should consume medical services,
 and in what quantities, is examined by using Japanese household-level
 data. Two key concepts are employed, health risk and income risk, and
 whether family heads or dependants bear these risks investigated. Health
 risk is the risk that a household member falls ill, while income risk is
 the risk that future household income decreases. It is found that both
 heads and dependants make fewer visits to doctors as household size
 increases. It is also found that only dependants visited doctors less
 frequently following the reform of the public health insurance system,
 which raised the co-payment rate of family heads from 10% to 20%. These
 findings imply that heads and dependants share health risk but dependants
 bear income risk. 
Journal: Applied Economics 
Pages: 1723-1735 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600895798 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600895798 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1723-1735




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu 
Author-X-Name-First: Chun-Chu 
Author-X-Name-Last: Liu 
Title: Evaluating the operational efficiency of major ports in the Asia-Pacific region using data envelopment analysis 
Abstract:
  In recent years, as competition among international ports has
 intensified, the impartial and objective evaluation of port operational
 efficiency has become increasingly important in enabling each individual
 port to understand its peculiar strengths and weaknesses, as well as any
 immediate threats or opportunities that may affect its competitive
 environment. This study applies CCR model, BCC model and 3-stage DEA model
 to evaluate the changes in efficiency that have taken place between 1998
 and 2001 in 10 ports in the Asia-Pacific region using cross-period data.
 The empirical results show that different model will lead to different
 result. On average, the efficiency estimated by 3-stage DEA procedure is
 the highest, while CCR efficiency is the lowest. It should be noted that
 the efficiencies based on CCR and BCC model are somewhat lower than the
 3-stage DEA approaches, because they do not take the environmental
 factors, managerial inefficiency and statistical noises into account. 
Journal: Applied Economics 
Pages: 1737-1743 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905126 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905126 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1737-1743




Template-Type: ReDIF-Article 1.0
Author-Name: Sigbjorn Tveteras 
Author-X-Name-First: Sigbjorn 
Author-X-Name-Last: Tveteras 
Author-Name: Frank Asche 
Author-X-Name-First: Frank 
Author-X-Name-Last: Asche 
Title: International fish trade and exchange rates: an application to the trade with salmon and fishmeal 
Abstract:
  International fish trade is growing, and fish exports represent an
 important source of foreign currency for many countries. For a few
 countries the exports are also an essential part of the economy. We
 revisit the seminal paper of Richardson (1978) that addresses the issue of
 exchange rate pass-through in commodity markets, but in a multivariate
 cointegration framework. The multivariate cointegration framework allows
 us to test common assumptions like exchange rate pass-through, leading
 price, central markets, and exogeneity of exchange rates. This approach is
 particularly suited when studying markets for primary products. We provide
 empirical examples using salmon imports to Japan and fish meal exports
 from Peru to Germany. 
Journal: Applied Economics 
Pages: 1745-1755 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905134 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905134 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1745-1755




Template-Type: ReDIF-Article 1.0
Author-Name: Jie-Min Lee 
Author-X-Name-First: Jie-Min 
Author-X-Name-Last: Lee 
Author-Name: Sheng-Hong Chen 
Author-X-Name-First: Sheng-Hong 
Author-X-Name-Last: Chen 
Title: The effects of price and smoking risk information on the demand for tobacco in Taiwan: an empirical study 
Abstract:
  This study evaluates the effects of a cigarette price increase and
 smoking risk information on tobacco consumption in Taiwan. Tobacco price,
 expenditure and an index of smoking risk information for Taiwan were
 introduced into a Central Bureau of Statistics (CBS) demand model to
 estimate several cigarette demand elasticity coefficients. According to
 this model, increasing the cigarette price is a more effective means of
 reducing cigarette consumption than disseminating more risk information.
 In addition, we found that a price rise of NT$5 per cigarette pack would
 cause a reduction in the consumption of domestic and imported cigarettes
 of 3.23 and 4.86 packs per capita, respectively. Total per capita
 consumption of cigarettes would be reduced annually by 8.09 packs (7.56%).
 Despite this reduction in cigarette consumption, the increase in cigarette
 price would at the same time lead to a significant net increase in tax
 revenue to the Taiwan government. 
Journal: Applied Economics 
Pages: 1757-1767 
Issue: 13 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905142 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1757-1767




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Pakko 
Author-X-Name-First: Michael 
Author-X-Name-Last: Pakko 
Title: No smoking at the slot machines: the effect of a smoke-free law on Delaware gaming revenues 
Abstract:
  As communities around the nation consider laws restricting smoking in
 public places, a key political and economic issue that often arises is the
 effect that such laws have on the sales and profits of particular sectors.
 The gaming industry has been active in opposition to such ordinances,
 citing large prospective losses. This article analyses the revenues of
 three gaming facilities in Delaware following the implementation of a
 smoke-free law in December 2002. Revenues are found to have declined
 significantly at each of the three facilities, with relative magnitudes of
 losses corresponding to the availability of alternative gaming venues in
 the region. 
Journal: Applied Economics 
Pages: 1769-1774 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905241 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905241 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1769-1774




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Joachim Tan 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Tan 
Title: Forecasting international bandwidth capacity using linear and ANN methods 
Abstract:
  An artificial neural network (ANN) can improve forecasts through pattern
 recognition of historical data. This article evaluates the reliability of
 ANN methods, as opposed to simple extrapolation techniques, to forecast
 Internet bandwidth index data that is bursty in nature. A simple
 feedforward ANN model is selected as a nonlinear alternative, as it is
 flexible enough to model complex linear or nonlinear relationships without
 any prior assumptions about the data generating process. These data are
 virtually white noise and provides a challenge to forecasters. Using
 standard forecast error statistics, the ANN and the simple exponential
 smoothing model provide modestly better forecasts than other extrapolation
 methods. 
Journal: Applied Economics 
Pages: 1775-1787 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905183 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905183 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1775-1787




Template-Type: ReDIF-Article 1.0
Author-Name: David Maddison 
Author-X-Name-First: David 
Author-X-Name-Last: Maddison 
Author-Name: Anders Jul Pedersen 
Author-X-Name-First: Anders 
Author-X-Name-Last: Jul Pedersen 
Title: The death effect in art prices: evidence from Denmark 
Abstract:
  Analysing a panel of paintings by Danish painters suggests that the
 conditional life expectancy of the artist at the time of sale has a
 negative impact on the sale price. This is consistent with the idea that
 artists share some of the characteristics of durable monopolists and that
 the aging and ultimately the death of the artist represent acceptable
 forms of commitment not to 'overproduce'. In addition interest in an
 artist's work begins to wane after their death. 
Journal: Applied Economics 
Pages: 1789-1793 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905191 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905191 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1789-1793




Template-Type: ReDIF-Article 1.0
Author-Name: Takashi Unayama 
Author-X-Name-First: Takashi 
Author-X-Name-Last: Unayama 
Title: Measuring the substitution bias in Japan: the demand system approach and a superlative index 
Abstract:
  This study estimates the demand system using Japanese micro data and
 calculates the cost of living index (COLI) to assess the substitution bias
 in the Consumer Price Index. The estimated bias during the sample period
 of 1982-2000 is about 0.06 percentage points, which is larger than the
 estimates calculated from a superlative index. The difference between the
 COLI and a superlative index can be explained with the upward movements of
 the average utility level in Japan, since the cost of living for the rich
 has grown more rapidly than that for the poor. 
Journal: Applied Economics 
Pages: 1795-1806 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905209 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905209 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1795-1806




Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Aydede 
Author-X-Name-First: Yigit 
Author-X-Name-Last: Aydede 
Title: Aggregate consumption function and public social security: the first time-series study for a developing country, Turkey 
Abstract:
  This article is the first attempt in the literature to investigate the
 effects of public social security on aggregate consumption in a
 time-series setting for a developing country, Turkey that has one of the
 most generous social security systems in the organization for economic
 cooperation and development (OECD) region. In order to quantify the social
 security variable, this article uses the social security wealth (SSW)
 series calculated for Turkey in a separate study. This study indicates
 that SSW is the largest part of the household wealth in Turkey, and
 therefore should not be ignored in the aggregate consumption studies. The
 results show that its effect on consumption is positive and robust. 
Journal: Applied Economics 
Pages: 1807-1826 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905167 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905167 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1807-1826




Template-Type: ReDIF-Article 1.0
Author-Name: Jorge Mate-Garcia 
Author-X-Name-First: Jorge 
Author-X-Name-Last: Mate-Garcia 
Author-Name: Jose Rodriguez-Fernandez 
Author-X-Name-First: Jose 
Author-X-Name-Last: Rodriguez-Fernandez 
Title: Productivity and R&D: an econometric evidence from Spanish firm-level data 
Abstract:
  This article analyses the relationship between productivity growth and
 R&D investments of Spanish manufacturing firms during the 1990s. The
 theoretical model is a version of the Cobb-Douglas production function in
 its growth rate form. The purpose is to estimate the rate of return to R&D
 expenditures. The econometric specification is a distributed lag model.
 The estimation applies the generalized method of moments method. The main
 empirical finding is that a positive and significant role is played by R&D
 expenditures on productivity growth. The rate of return to R&D
 expenditures is 26.598%. 
Journal: Applied Economics 
Pages: 1827-1837 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905217 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905217 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1827-1837




Template-Type: ReDIF-Article 1.0
Author-Name: Heinz Welsch 
Author-X-Name-First: Heinz 
Author-X-Name-Last: Welsch 
Title: The welfare costs of corruption 
Abstract:
  Corruption has been shown to affect a variety of economic indicators,
 especially GDP per capita. However, as GDP is not a genuine indicator of
 welfare, it may reflect the welfare costs of corruption only in an
 incomplete way. This article uses self-rated subjective well-being as an
 empirical approximation to general welfare and shows that cross-national
 welfare - operationalized in this way - is affected by corruption not only
 indirectly through GDP, but also directly through nonmaterial factors.
 This article estimates the size of these effects as well as their monetary
 equivalent. The direct effect - not previously investigated in the
 corruption literature - is found to be substantially larger than the
 indirect effect. 
Journal: Applied Economics 
Pages: 1839-1849 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905225 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905225 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1839-1849




Template-Type: ReDIF-Article 1.0
Author-Name: Felix Lopez-Iturriaga 
Author-X-Name-First: Felix 
Author-X-Name-Last: Lopez-Iturriaga 
Author-Name: Juan Antonio Rodriguez-Sanz 
Author-X-Name-First: Juan Antonio 
Author-X-Name-Last: Rodriguez-Sanz 
Title: Capital structure and institutional setting: a decompositional and international analysis 
Abstract:
  The legal and institutional setting is more and more influential in
 firms' financial decisions. Our article analyses firms' capital structure
 in an international framework in order to assess the different level of
 debt use across countries and to identify both common and differential
 explanatory factors. Although the level of financial leverage is quite
 different, the factors that have traditionally driven capital structure
 decisions have much in common in all the legal and institutional settings.
 The performance and size of the firm, the assets tangibility and the
 growth opportunities have a relevant but differential effect across the
 different institutional systems. Consequently, our results suggest that
 the legal and institutional system of each country does not only affect
 firms' capital structure but also creates the conditions to explain a
 differential effect of the common determinants of firms' financial
 choices. 
Journal: Applied Economics 
Pages: 1851-1864 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905233 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905233 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1851-1864




Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Granier 
Author-X-Name-First: Laurent 
Author-X-Name-Last: Granier 
Title: Endogenous mergers and cost heterogeneity 
Abstract:
  The objective of this article is to analyze the effect of firms'
 heterogeneity on their incentives to merge. To reach this target, merger
 decisions are modelled as endogenous. To simplify the analysis, we focus
 on the extreme case where merger leads to monopolization. Kamien and Zang
 (1990, 1993) give monopolization conditions in static and dynamic
 acquisition games. Introducing cost heterogeneity in a n-firm industry, we
 provide more general monopolization conditions. Indeed, we show that any
 industry can be monopolized if cost heterogeneity is large enough. This
 result provides new information to competition authorities on
 concentration possibilities and allows them to focus particularly on some
 industries. 
Journal: Applied Economics 
Pages: 1865-1871 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905258 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905258 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1865-1871




Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Galdeano-Gomez 
Author-X-Name-First: Emilio 
Author-X-Name-Last: Galdeano-Gomez 
Title: Productivity effects of environmental performance: evidence from TFP analysis on marketing cooperatives 
Abstract:
  The object of the present article is to offer a decomposition of
 productivity indices incorporating environmental changes. The model
 followed is an input oriented approach related to undesirable output
 (environmental performance attribute) in horticultural marketing
 cooperatives. This study is motivated by both the lack of analysis of
 environmental performance's effects on agribusiness productivity and the
 relevance of cooperative firms in the European agricultural model for
 attaining sustainability. For this purpose, bootstrapped envelopment
 analysis is applied and the best practice frontier obtained corresponds to
 decision making units showing the best environmental behaviour. The
 Malmquist total factor productivity (TFP) is decomposed into technological
 change, efficiency and environmental change. In the second stage, the
 correlations of these changes with other management variables of
 cooperatives are analysed. The indicators obtained, on one hand, advice
 about the nonseparable distance function estimations when the
 environmental factor is introduced. On the other hand, the results display
 a relevant increase in efficiency and environmental components for the
 period under study showing a high influence from labour qualification,
 environmental effort and spillover effect in the sector. 
Journal: Applied Economics 
Pages: 1873-1888 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905266 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905266 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1873-1888




Template-Type: ReDIF-Article 1.0
Author-Name: Machiel van Dijk 
Author-X-Name-First: Machiel 
Author-X-Name-Last: van Dijk 
Author-Name: Michiel Bijlsma 
Author-X-Name-First: Michiel 
Author-X-Name-Last: Bijlsma 
Author-Name: Marc Pomp 
Author-X-Name-First: Marc 
Author-X-Name-Last: Pomp 
Title: The price of free advice 
Abstract:
  What factors determine how well consumers make their actual choices with
 regard to financial products? This article empirically evaluates two
 different choices consumers make when buying deferred annuities. One
 choice concerns the type of insurance policy, the other concerns the
 choice of insurance provider. For both choices, we will analyse what
 factors explain the quality of the choice made. In particular, we will
 investigate the role of financial advice in the decision-making process.
 By combining Dutch consumer survey data and data on quotations by Dutch
 life insurance companies, we obtain the following results. First,
 respondents who buy their policy directly from an insurer attain a
 significantly better match between their risk preferences and the type of
 policy chosen than respondents who purchase their policy through an
 insurance broker. Second, respondents who buy their policy through an
 insurance broker obtain a significantly lower payout than respondents who
 purchased their policy directly from an insurance company. These results
 raise doubts about the functioning of both the market for financial advice
 and the market for life insurances. 
Journal: Applied Economics 
Pages: 1889-1903 
Issue: 14 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905274 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905274 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1889-1903




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: Price flexibility in developing countries: evidence and implications 
Abstract:
  Using data for a sample of 50 developing countries, the empirical
 investigation evaluates determinants and implications of asymmetric price
 flexibility. Price inflation is characterized by high flexibility to
 adjust towards full equilibrium. Further, price inflation accelerates
 flexibly with unanticipated demand growth, in both the upward and downward
 directions, in most of the countries under investigation. Asymmetry
 indicates higher upward flexibility compared to downward flexibility in
 many countries. Aggregate uncertainty determines the degree of asymmetry
 such that price flexibility is higher with respect to expansionary demand
 shocks, compared to contractionary shocks, the higher the variability of
 aggregate demand across countries. In contrast, higher trend price
 inflation increases downward price flexibility. Across countries, output
 variability decreases with both upward and downward price flexibility in
 the face of aggregate demand shocks. 
Journal: Applied Economics 
Pages: 1905-1918 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905290 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905290 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1905-1918




Template-Type: ReDIF-Article 1.0
Author-Name: Kelvin Balcombe 
Author-X-Name-First: Kelvin 
Author-X-Name-Last: Balcombe 
Author-Name: Iain Fraser 
Author-X-Name-First: Iain 
Author-X-Name-Last: Fraser 
Author-Name: Laure Latruffe 
Author-X-Name-First: Laure 
Author-X-Name-Last: Latruffe 
Author-Name: Mizanur Rahman 
Author-X-Name-First: Mizanur 
Author-X-Name-Last: Rahman 
Author-Name: Laurence Smith 
Author-X-Name-First: Laurence 
Author-X-Name-Last: Smith 
Title: An application of the DEA double bootstrap to examine sources of efficiency in Bangladesh rice farming 
Abstract:
  In this article we examine sources of technical efficiency for rice
 farming in Bangladesh. The motivation for the analysis is the need to
 close the rice yield gap to enable food security. We employ the DEA double
 bootstrap of Simar and Wilson (2007) to estimate and explain technical
 efficiency. This technique overcomes severe limitations inherent in using
 the two-stage DEA approach commonly employed in the efficiency literature.
 From a policy perspective our results show that potential efficiency gains
 to reduce the yield gap are greater than previously found. Statistically
 positive influences on technical efficiency are education, extension and
 credit, with age being a negative influence. 
Journal: Applied Economics 
Pages: 1919-1925 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905282 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905282 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1919-1925




Template-Type: ReDIF-Article 1.0
Author-Name: Mousumi Duttaray 
Author-X-Name-First: Mousumi 
Author-X-Name-Last: Duttaray 
Author-Name: Amitava Dutt 
Author-X-Name-First: Amitava 
Author-X-Name-Last: Dutt 
Author-Name: Kajal Mukhopadhyay 
Author-X-Name-First: Kajal 
Author-X-Name-Last: Mukhopadhyay 
Title: Foreign direct investment and economic growth in less developed countries: an empirical study of causality and mechanisms 
Abstract:
  We examine the causality between foreign direct investment (FDI) and
 economic growth for 66 developing countries, taking into account their
 interaction with exports and technological change. Time series analysis
 for each country is conducted, based on a method introduced by Toda and
 Yamamoto (1995) for testing Granger causality in the presence of
 nonstationary time series. The main findings of this article are: FDI
 causes growth in several of the developing countries, but the mechanism
 through which this works differs across countries and reverse causality
 from growth to FDI exists for many countries. 
Journal: Applied Economics 
Pages: 1927-1939 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949231 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949231 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1927-1939




Template-Type: ReDIF-Article 1.0
Author-Name: Diansheng Dong 
Author-X-Name-First: Diansheng 
Author-X-Name-Last: Dong 
Author-Name: Harry Kaiser 
Author-X-Name-First: Harry 
Author-X-Name-Last: Kaiser 
Title: Studying household purchasing and nonpurchasing behaviour for a frequently consumed commodity: two models 
Abstract:
  A panel data double-hurdle model is developed to analyse household
 purchasing behaviour. The model, a time-series extension of Cragg's
 conventional double-hurdle model of censored consumption, is able to
 account not only for the censored nature of commodity purchases, but also
 for the temporal linkage of the purchase process. The panel data
 double-hurdle model is compared with the marked renewal model that has
 also been used for studying household purchasing behaviour. The empirical
 results of the double-hurdle model show that for household milk purchases
 hurdle due to noneconomic reasons exists. The results of the marked
 purchase renewal model showed that the duration dependence is positive.
 Both models fit the data well. 
Journal: Applied Economics 
Pages: 1941-1951 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949272 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949272 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1941-1951




Template-Type: ReDIF-Article 1.0
Author-Name: M. McKenzie 
Author-X-Name-First: M. 
Author-X-Name-Last: McKenzie 
Title: Privatization and economic growth in Australia: the shorthand of a long process 
Abstract:
  The impact of privatization on economic growth has been little
 investigated relative to disaggregated approaches. A growth accounting
 framework is used here to investigate the impact of privatization on
 growth for the Australian economy. The contribution of public capital to
 the private sector and whether the growth process is endogenous or Solow
 is evaluated. Separate measures of public and private capital are computed
 in order to estimate their impacts with labour on Australian gross
 domestic product (GDP) growth for the period 1960 to 2003. A simple growth
 rates version is found preferred by stationarity and other tests. Labour
 growth appears to strongly positively influence the growth of GDP. In
 contrast, public capital growth has no statistically significant effect on
 GDP growth, or on private capital productivity. The data are consistent
 with the hypothesis that the coefficients of the growth equation are the
 same before and during privatization. 
Journal: Applied Economics 
Pages: 1953-1967 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600915257 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600915257 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1953-1967




Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Alvarez-Diaz 
Author-X-Name-First: Marcos 
Author-X-Name-Last: Alvarez-Diaz 
Title: Exchange rates forecasting: local or global methods? 
Abstract:
  Exchange rates forecasters usually assume that local methods (nearest
 neighbour) dominate the global ones (neural networks or genetic
 programming, for example). In this article, first, we use different
 generalizations of the standard nearest neighbours to predict the dynamic
 evolution of the Yen/US$ and Pound Sterling/US$ exchange rates one-period
 ahead. Second, we compare our results with those employing global methods
 such as neural networks, genetic programming, data fusion and evolutionary
 neural networks. Finally, we find out the existence of predictable
 structures &#x3c4; periods ahead. Our results reveal a slightly but
 significant forecasting ability for one-period ahead which is lost when
 more periods ahead are considered, and no important predictive differences
 between local and global methods have been found. 
Journal: Applied Economics 
Pages: 1969-1984 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600905308 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905308 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1969-1984




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brent 
Title: The role of user fees in the cost-benefit analysis of privatization with an application to inpatient psychiatric services in the US 
Abstract:
  When there is no asset sale and thus no lump sum revenues to accrue to
 the government, one of the major benefits of privatization is then absent.
 Because of this, the revenues that were previously obtained from private
 clients assume more importance. This article incorporates these client
 revenues fully into a cost-benefit framework and applies the framework to
 an evaluation of the privatization of psychiatric wards in nonfederal
 general hospitals in the United States. We find that the privatization of
 psychiatric services in general hospitals would provide a social gain only
 if the change took place using for-profit rather than nonprofit hospitals,
 a finding that depends crucially on including the excess burden effects of
 public revenues. 
Journal: Applied Economics 
Pages: 1985-1993 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600915265 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600915265 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1985-1993




Template-Type: ReDIF-Article 1.0
Author-Name: Amit Ghosh 
Author-X-Name-First: Amit 
Author-X-Name-Last: Ghosh 
Author-Name: Saumik Paul 
Author-X-Name-First: Saumik 
Author-X-Name-Last: Paul 
Title: Opening the Pandora's box? Trade openness and informal sector growth 
Abstract:
  This article constructs a labour transition model combining the features
 of job loss and job creation in the formal sector of an economy. The
 theoretical model examines the impact of trade liberalization on net job
 transition from formal to informal sector. In the light of our model we
 establish certain pre-conditions based on simulations under which trade
 liberalization is accompanied by rising informal sector. The model outcome
 conforms to the empirical evidence of rising informality with openness
 which we find in 18 Central Eastern European and Former Soviet Union
 countries. 
Journal: Applied Economics 
Pages: 1995-2007 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600915273 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600915273 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1995-2007




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Olivares 
Author-X-Name-First: Jose 
Author-X-Name-Last: Olivares 
Title: Rear-view-mirror driving in defined contribution systems: the strange formula of the Chilean pension funds 
Abstract:
  The pioneering regulation on Chilean pension funds under Defined
 Contribution program requires private managing institutions to exclusively
 manage individual accounts and meet a minimum return to their clients. The
 purpose of this study is to empirically investigate the investment
 behaviour of pension funds and to contribute to the Social Security
 debate. The findings reveal the benchmark significantly explains funds'
 performance. Pension funds tend to replicate their asset allocations to
 exhibit similarities in returns. We believe the obligation on fund
 managers to attain a minimum guaranteed return, based on relative
 performance evaluation, encourages them not to deviate from the industry's
 performance; indeed, the benchmark explains most of the group performance.
 To hold similar allocations, managers may monitor each others through
 their investment style. 
Journal: Applied Economics 
Pages: 2009-2019 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600936345 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600936345 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:2009-2019




Template-Type: ReDIF-Article 1.0
Author-Name: Vladimir Teles 
Author-X-Name-First: Vladimir 
Author-X-Name-Last: Teles 
Author-Name: Joaquim Andrade 
Author-X-Name-First: Joaquim 
Author-X-Name-Last: Andrade 
Title: Monetary policy and country risk 
Abstract:
  This article develops an econometric model in order to study country risk
 behaviour for six emerging economies (Argentina, Mexico, Russia, Thailand,
 Korea and Indonesia), by expanding the country beta risk model of Harvey
 and Zhou (1993), Erb et al. (1996a, b) and Gangemi et al. (2000). Towards
 this end, we have analysed the impact of macroeconomic variables,
 especially monetary policy, upon country risk, by way of a time-varying
 parameter approach. The results indicate an unstable effect of monetary
 policy upon country risk in periods of crisis. However, this effect is
 stable in other periods, and the Favero-Giavazzi effect is not verified
 for all economies, with an opposite effect being observed in many cases. 
Journal: Applied Economics 
Pages: 2021-2028 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949249 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949249 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:2021-2028




Template-Type: ReDIF-Article 1.0
Author-Name: Goksel Armagan 
Author-X-Name-First: Goksel 
Author-X-Name-Last: Armagan 
Author-Name: Cuma Akbay 
Author-X-Name-First: Cuma 
Author-X-Name-Last: Akbay 
Title: An econometric analysis of urban households' animal products consumption in Turkey 
Abstract:
  People in developing countries are increasing their consumption from the
 very low levels of the past, and they have a long way to go before coming
 near developed country averages. In this study, households' animal
 products consumption patterns are analysed by using Linear Approximation
 of Almost Ideal Demand System (LA/AIDS) and survey data collected from
 households in urban areas in Turkey. According to the results of the
 study, annual per capita consumption of animal products were 48.18 kg for
 milk, 26.89 kg for yogurt, 18.55 kg for cheese, 6.45 kg for meat, 22.11 kg
 for poultry and 10.05 kg for fish. Price elasticities were found to be
 lower than 1 for milk, yogurt, cheese, poultry and fish and higher than 1
 for meat. Moreover, the impacts of socio-demographic factors on the demand
 for animal products were found to be very low. Determination of production
 targets and formulation of polices are possible by obtaining the proper
 information related to the livestock products. 
Journal: Applied Economics 
Pages: 2029-2036 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949256 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949256 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:2029-2036




Template-Type: ReDIF-Article 1.0
Author-Name: Isidoro Guzman 
Author-X-Name-First: Isidoro 
Author-X-Name-Last: Guzman 
Author-Name: Carmelo Reverte 
Author-X-Name-First: Carmelo 
Author-X-Name-Last: Reverte 
Title: Productivity and efficiency change and shareholder value: evidence from the Spanish banking sector 
Abstract:
  Productivity change and shareholder value have been analysed in the
 banking sector in the last few years, although it should be noted that
 these two important aspects have been studied separately. In this regard,
 the main contribution of our study is to link these two lines of research
 by verifying whether those banks characterized by higher levels of
 efficiency and productivity change have a higher shareholder value. To
 measure changes in efficiency and productivity we use the Malmquist
 nonparametric technique, which is calculated from Data Envelopment
 Analysis (DEA) linear programming approach. The Malmquist total factor
 productivity index enables separation of the 'catching up' effect, i.e.
 changes over time in technical efficiency, from 'technological change',
 i.e. the shift of best practice frontier over time due to technological
 progress. Our results for a sample of listed Spanish banks in the period
 2000 to 2004 confirm that those banks with higher efficiency and
 productivity changes have a higher shareholder value, even after
 controlling for the impact of traditional measures of performance, such as
 return on assets. 
Journal: Applied Economics 
Pages: 2037-2044 
Issue: 15 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949413 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949413 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:2037-2044




Template-Type: ReDIF-Article 1.0
Author-Name: Akhter Faroque 
Author-X-Name-First: Akhter 
Author-X-Name-Last: Faroque 
Title: An investigation into the demand for alcoholic beverages in Canada: a choice between the almost ideal and the Rotterdam models 
Abstract:
  In this article I investigate the historical pattern of interactions in
 the demand for three categories of alcoholic beverages in Canada, using
 both the differential Almost Ideal and the differential Rotterdam demand
 systems. I evaluate these models based on several decision criteria
 including model encompassment (based on the J-test), structural stability,
 conformity with demand theory and the credibility of the estimated price
 and income responses, in an attempt to determine which of these models is
 better suited for explaining the demand for alcoholic beverages. The
 results reveal that both models satisfy the restrictions of demand theory
 and of structural stability but the Rotterdam model is preferable on
 grounds of the remaining two criteria. 
Journal: Applied Economics 
Pages: 2045-2054 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949363 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2045-2054




Template-Type: ReDIF-Article 1.0
Author-Name: Kelvin Balcombe 
Author-X-Name-First: Kelvin 
Author-X-Name-Last: Balcombe 
Author-Name: Sophia Davidova 
Author-X-Name-First: Sophia 
Author-X-Name-Last: Davidova 
Author-Name: Laure Latruffe 
Author-X-Name-First: Laure 
Author-X-Name-Last: Latruffe 
Title: The use of bootstrapped Malmquist indices to reassess productivity change findings: an application to a sample of Polish farms 
Abstract:
  This article assesses the extent to which sampling variation affects
 findings about Malmquist productivity change derived using data
 envelopment analysis (DEA), in the first stage by calculating productivity
 indices and in the second stage by investigating the farm-specific change
 in productivity. Confidence intervals for Malmquist indices are
 constructed using Simar and Wilson's (1999) bootstrapping procedure. The
 main contribution of this article is to account in the second stage for
 the information in the second stage provided by the first-stage bootstrap.
 The DEA SEs of the Malmquist indices given by bootstrapping are employed
 in an innovative heteroscedastic panel regression, using a maximum
 likelihood procedure. The application is to a sample of 250 Polish farms
 over the period 1996 to 2000. The confidence intervals' results suggest
 that the second half of 1990s for Polish farms was characterized not so
 much by productivity regress but rather by stagnation. As for the
 determinants of farm productivity change, we find that the integration of
 the DEA SEs in the second-stage regression is significant in explaining a
 proportion of the variance in the error term. Although our heteroscedastic
 regression results differ with those from the standard OLS, in terms of
 significance and sign, they are consistent with theory and previous
 research. 
Journal: Applied Economics 
Pages: 2055-2061 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949264 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949264 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2055-2061




Template-Type: ReDIF-Article 1.0
Author-Name: J. A. Bikker 
Author-X-Name-First: J. A. 
Author-X-Name-Last: Bikker 
Author-Name: M. van Leuvensteijn 
Author-X-Name-First: M. 
Author-X-Name-Last: van Leuvensteijn 
Title: Competition and efficiency in the Dutch life insurance industry 
Abstract:
  The lack of available prices in the Dutch life insurance industry makes
 competition an elusive concept that defies direct observation. Therefore,
 this article investigates competition by analysing several factors which
 may affect the competitive nature of a market and various indirect
 measurement approaches. After discussing various supply and demand factors
 which may constitute a so-called tight oligopoly, we establish the
 existence of scale economies and the importance of cost X-inefficiency,
 since severe competition would force firms to exploit available scale
 economies and to reduce X-inefficiencies. Both scale economies and
 X-inefficiencies turn out to be substantial, although more or less
 comparable to those found for insurers in other countries and to other
 financial institutions. Further, we apply the Boone indicator, a novel
 approach to measuring the effects of competition. This indicator points to
 limited competition in comparison to other sectors in the Netherlands.
 Further investigations of submarkets should reveal where policy measures
 in order to promote competition might be appropriate. 
Journal: Applied Economics 
Pages: 2063-2084 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949298 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949298 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2063-2084




Template-Type: ReDIF-Article 1.0
Author-Name: Raul Crespo 
Author-X-Name-First: Raul 
Author-X-Name-Last: Crespo 
Title: Total factor productivity: an unobserved components approach 
Abstract:
  This work examines the presence of unobserved components in the
 time-series of total factor productivity (TFP), which is an idea central
 to modern Macroeconomics. The main approaches in both the study of
 economic growth and the study of business cycles rely on certain
 properties of the different components of the time-series of TFP. In the
 study of economic growth, the Neoclassical growth model explains growth in
 terms of technical progress as measured by the secular component of TFP.
 While in the study of business cycles, the Real Business Cycle approach
 explains short-run fluctuations in the economy as determined by temporary
 movements in the production function, which are reflected by the cyclical
 component of the time-series of the same variable. The econometric
 methodology employed in the estimation of these different components is
 the structural time-series approach developed by Harvey (1989), Harvey and
 Shephard (1993), and others. An application to the time-series of TFP for
 the 1948-2002 US private nonfarm business sector is presented. 
Journal: Applied Economics 
Pages: 2085-2097 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949314 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949314 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2085-2097




Template-Type: ReDIF-Article 1.0
Author-Name: Herve Queneau 
Author-X-Name-First: Herve 
Author-X-Name-Last: Queneau 
Author-Name: Amit Sen 
Author-X-Name-First: Amit 
Author-X-Name-Last: Sen 
Title: Evidence on the dynamics of unemployment by gender 
Abstract:
  We present empirical evidence regarding unemployment dynamics for women
 and men in eight OECD countries. Unit-root tests are used to examine the
 unemployment dynamics of women and men. Failure to reject the unit-root
 hypothesis is consistent with unemployment hysteresis. Rejection of the
 unit-root hypothesis indicates that unemployment dynamics are best
 explained by the natural rate of unemployment or the structuralist view.
 We find evidence of gender differences in unemployment dynamics in Canada,
 Germany and the US, but not in other countries. While there are some
 differences in the extent of persistence across gender and across
 countries, the degree of persistence for both female and male unemployment
 rates is fairly low in all countries. Our results, therefore, contrast
 with substantial empirical evidence of high levels of unemployment
 persistence in European countries. 
Journal: Applied Economics 
Pages: 2099-2108 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949330 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949330 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2099-2108




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Javier de Miguel 
Author-X-Name-First: Francisco Javier 
Author-X-Name-Last: de Miguel 
Author-Name: Antonio Manresa 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Manresa 
Title: Removal of farm subsidies in a regional economy: a computable general equilibrium analysis 
Abstract:
  The purpose of this article is to analyse the importance of farm
 subsidies for the Extremadura economy. To this end, a computable general
 equilibrium model for this region is presented, with which we analyse the
 economic effects caused by a simulated removal of these subsidies.
 Different scenarios involving the labour market rigidities and tax
 compensation are considered. Model parameters are determined by the
 procedure known as calibration, using a social accounting matrix
 constructed for this economy. The results clearly show the negative
 effects that this elimination would produce on the main micro and
 macroeconomic variables. 
Journal: Applied Economics 
Pages: 2109-2120 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949371 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949371 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2109-2120




Template-Type: ReDIF-Article 1.0
Author-Name: Naresh Pradhan 
Author-X-Name-First: Naresh 
Author-X-Name-Last: Pradhan 
Author-Name: PingSun Leung 
Author-X-Name-First: PingSun 
Author-X-Name-Last: Leung 
Title: Sea turtle interactions with Hawaii's longline fishery: an extended multi-objective programming model incorporating spatial and seasonal dimensions 
Abstract:
  Endangered and protected sea turtle interactions with the pelagic
 longline fishery have become an important fishery policy concern recently.
 A multi-objective programming model for Hawaii's longline fishery that
 incorporated sea turtle interactions (Pradhan and Leung, 2006a) has been
 extended with spatial and seasonal dimensions. The synergetic effect of
 these added features indicate that there exists better economic and
 environmental efficiency gains in terms of higher profit and reduced
 turtle interactions, compared to the base case without these added
 dimensions, by reconfiguring fishing efforts across space and seasons.
 There also exists a trade-off between fleet-wide profit and turtle
 interactions. The current fishery policy related to sea turtle
 interactions disallows capturing all the potential efficiency gain, as the
 number of turtles allowed to get interacted severely limits
 swordfish-targeted longline fishing that uses conventional technologies.
 Restricting longline fishery to operate sub-optimally would result in
 average shadow value of $15 957 and $60 908 per turtle in terms of lost
 profit and revenue, respectively. These shadow values are higher than
 those estimated from earlier model without the spatial and seasonal
 dimensions. Adaptation to 'turtle-friendly' fishing technologies is among
 the many strategies that would allow for higher optimal fishing efforts
 and also leading to higher overall welfare and towards more responsible
 fishery. 
Journal: Applied Economics 
Pages: 2121-2134 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949355 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949355 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2121-2134




Template-Type: ReDIF-Article 1.0
Author-Name: Huai-I. Lee 
Author-X-Name-First: Huai-I. 
Author-X-Name-Last: Lee 
Author-Name: Min-Hsien Chiang 
Author-X-Name-First: Min-Hsien 
Author-X-Name-Last: Chiang 
Author-Name: Hsinan Hsu 
Author-X-Name-First: Hsinan 
Author-X-Name-Last: Hsu 
Title: A new choice of dynamic asset management: the variable proportion portfolio insurance 
Abstract:
  The constant proportion portfolio insurance (CPPI) achieves the advantage
 of simplicity due to its constant multiple. However, a dynamic multiple
 could improve the effectiveness of portfolio management. In this article,
 we provide a complete and detailed examination of the mechanism of
 variable proportion portfolio insurance (VPPI) strategy. The multiple of
 the VPPI states that when the stock price goes up, the multiple gets
 larger accordingly and when the stock price goes down, the multiple gets
 smaller. A portfolio insurance strategy with this discipline could yield
 better performance. Based on this principle, we recommend an exponential
 proportion portfolio insurance (EPPI). In addition, we also propose a new
 performance measure for portfolio insurance. Compared with the CPPI,
 simulation and empirical evidence support that the EPPI works better in
 both upside capture and downside protection, implying that the EPPI could
 be an effective tool for asset management. 
Journal: Applied Economics 
Pages: 2135-2146 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949280 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949280 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2135-2146




Template-Type: ReDIF-Article 1.0
Author-Name: Ensar Yilmaz 
Author-X-Name-First: Ensar 
Author-X-Name-Last: Yilmaz 
Author-Name: Alovsat Muslumov 
Author-X-Name-First: Alovsat 
Author-X-Name-Last: Muslumov 
Title: Deposit insurance and moral hazard problem: the case of Turkish banking system 
Abstract:
  We investigate the effect of full deposit insurance introduced in 1994 on
 the financial performance of Turkish commercial banks. We construct a
 model, under reasonable assumptions, with deposit insurance where banks
 undertake excessive risk - moral hazard risk. Empirical investigation
 using experimental design approach supports our moral hazard hypothesis.
 Our findings indicate that banks subject to the moral hazard behaviour
 show significant increases in foreign exchange position risk and
 deterioration in capital adequacy relative to their benchmark after
 introduction of full deposit insurance system. We relate this excessive
 risk-taking to the moral hazard behaviour by commercial banks. The
 research results indicate that complete deposit insurance system distorts
 the incentive structure of commercial banks and thus, prevents proper
 functioning of market discipline mechanism and leads to the taking
 excessive risk-taking. 
Journal: Applied Economics 
Pages: 2147-2163 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949306 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949306 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2147-2163




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Berument 
Author-Name: Eray Yucel 
Author-X-Name-First: Eray 
Author-X-Name-Last: Yucel 
Title: Effects of USD-Euro parity on a small open economy: evidence from Turkey 
Abstract:
  This study assesses the effect of USD-Euro parity on a small open economy
 where exports are predominantly denominated in Euros and imports are
 denominated in USD. Empirical evidence from Turkey suggests that a
 positive change in the USD value of the Euro appreciates the local
 currency, decreases inflation and increases output. 
Journal: Applied Economics 
Pages: 2165-2174 
Issue: 16 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949322 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949322 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2165-2174




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Tasci 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Tasci 
Title: Dual representation and its online scheduling method for event-varying DESs with capacity constraints 
Abstract:
  This article presents a small open economy model which is a part of the
 world that consists of a continuum of infinitesimal open economies. New
 Keynesian Investment Saving Line (IS) and Phillips curves are derived for
 the small open economy and the rest of the world. For five different
 policies, (i.e. domestic inflation targeting, consumer price index (CPI)
 inflation targeting, exchange rate peg, domestic inflation Taylor rule and
 CPI inflation Taylor rule) the effects of domestic and world technology
 shocks are analysed. The degree of openness is discussed and the effect of
 openness is addressed by comparing the impulse responses of a small open
 economy and closed economy that face productivity shocks. 
Journal: Applied Economics 
Pages: 2175-2190 
Issue: 17 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949462 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2175-2190




Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Busato 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Busato 
Author-Name: Bruno Chiarini 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Chiarini 
Author-Name: Elisabetta Marzano 
Author-X-Name-First: Elisabetta 
Author-X-Name-Last: Marzano 
Title: Consumption and income smoothing 
Abstract:
  This article presents a two-sector dynamic general equilibrium model in
 which income smoothing takes place within the households
 (intra-temporally), and consumption smoothing takes place among the
 households (inter-temporally). Idiosyncratic risk-sharing within the
 family is based on an income smoothing contract. There are two-sectors in
 the model, the regular sector and the underground sector, and the
 smoothing comes from the underground sector, which is countercyclical with
 respect to aggregate GDP. The article shows that the simulated
 disaggregated consumption and income series (that are the regular and
 underground consumption flows) are more sensitive to exogenous changes in
 sector-specific productivity and tax rates than regular and underground
 income flows, and that this picture is reversed when the aggregate series
 are considered. 
Journal: Applied Economics 
Pages: 2191-2207 
Issue: 17 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949348 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949348 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2191-2207




Template-Type: ReDIF-Article 1.0
Author-Name: Aude Hubrecht-Deville 
Author-X-Name-First: Aude 
Author-X-Name-Last: Hubrecht-Deville 
Author-Name: Herve Leleu 
Author-X-Name-First: Herve 
Author-X-Name-Last: Leleu 
Title: Impact of trade area environment on bank's comparative advantages 
Abstract:
  This article analyses the relationship between the comparative advantages
 of bank branches and the trade area environment. Bank branches are points
 of sale whose trade environment influences their activities and
 performance. Comparative advantages are defined, for each output mix, by
 the strict dominance of a production technology in a specific trade area
 over the production technologies of other environments. Using Shephard's
 output distance functions on a sample of 728 bank branches, we compare the
 production technologies for different output mixes and different trade
 environments. We show that none of the production technologies strictly
 dominates the others and none of them is strictly dominated. Therefore,
 each trade area benefits from comparative advantages that we try to
 highlight. Finally, we evaluate the performance of the central banks
 regarding their ability to provide the right incentives on output mixes to
 their bank branches so that the latter may benefit from their comparative
 advantages. 
Journal: Applied Economics 
Pages: 2209-2219 
Issue: 17 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949389 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949389 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2209-2219




Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Bertrand 
Author-X-Name-First: Olivier 
Author-X-Name-Last: Bertrand 
Author-Name: Habib Zitouna 
Author-X-Name-First: Habib 
Author-X-Name-Last: Zitouna 
Title: Domestic versus cross-border acquisitions: which impact on the target firms' performance? 
Abstract:
  This article investigates the effects of horizontal acquisitions on the
 performance of target firms in the 1990s. Using French manufacturing
 firm-level data, we examine two main indicators of performance: the profit
 and the productive efficiency. We distinguish domestic from cross-border
 acquisitions. To evaluate the impact of take-overs, we implement
 appropriate difference-in-difference estimation techniques associated to a
 matching propensity score procedure. We find that Mergers & Acquisitions
 (M&A) do not increase the profit of French target firms, even on the long
 run. However, they clearly raise the productivity of target firms. These
 results suggest that firms probably redistribute efficiency gains at the
 upstream and/or downstream production stage. There is no evidence of an
 increase in market power. In addition, the consequences of domestic and
 cross-border M&A significantly differ. Efficiency gains are stronger for
 cross-border M&A. This conclusion is however true only for extra-European
 Union operations. The achievement in the European economic integration
 certainly explains the absence of difference between European and domestic
 acquisitions. Finally, our results cast some doubt on the frequent
 discrimination attitude towards foreign takeovers and the fears of their
 impact on firms' performance and the host country's welfare. 
Journal: Applied Economics 
Pages: 2221-2238 
Issue: 17 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949397 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949397 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2221-2238




Template-Type: ReDIF-Article 1.0
Author-Name: Lena Lindahl 
Author-X-Name-First: Lena 
Author-X-Name-Last: Lindahl 
Title: Do birth order and family size matter for intergenerational income mobility? Evidence from Sweden 
Abstract:
  Previous studies of intergenerational income mobility have not considered
 potential birth-order or family-size effects in the estimated income
 elasticity. This article uses a large sample of individuals born between
 1962 and 1964; income elasticities with respect to parents' incomes are
 estimated for individuals with different birth-order positions and family
 sizes. Results based on labour income and total income for sons and
 daughters are reported separately. The elasticity tends to decrease with
 family size as well as with birth order for a given family size,
 especially in the labour-income analysis of fathers and sons. 
Journal: Applied Economics 
Pages: 2239-2257 
Issue: 17 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949421 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949421 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2239-2257




Template-Type: ReDIF-Article 1.0
Author-Name: Maritta Paloviita 
Author-X-Name-First: Maritta 
Author-X-Name-Last: Paloviita 
Title: Comparing alternative Phillips curve specifications: European results with survey-based expectations 
Abstract:
  This article examines inflation dynamics in Europe. Econometric
 specification tests with pooled European data are used to compare the
 empirical performance of the New Classical, New Keynesian and Hybrid
 specifications of the Phillips curve. Instead of imposing any specific
 form of expectations formation, direct measures, i.e. Consensus Economics
 survey data are used to proxy economic agents' inflation expectations.
 According to the results, the New Classical Phillips curve has
 satisfactory statistical properties. Moreover, the purely forward-looking
 New Keynesian Phillips curve is clearly outperformed by the New Classical
 and Hybrid Phillips curves. We interpret our results as indicating that
 the European inflation process is not purely forward looking and inflation
 cannot instantaneously adjust to changes in expectations. Consequently,
 even allowing for possible nonrationality in expectations results in a
 lagged inflation term entering the New Keynesian Phillips curve for
 inflation dynamics in Europe. 
Journal: Applied Economics 
Pages: 2259-2270 
Issue: 17 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949439 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949439 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2259-2270




Template-Type: ReDIF-Article 1.0
Author-Name: Diego Romero-Avila 
Author-X-Name-First: Diego 
Author-X-Name-Last: Romero-Avila 
Title: A confirmatory analysis of the unit root hypothesis for OECD consumption-income ratios 
Abstract:
  This article investigates the existence of a unit root in the
 consumption-income ratio for a sample of 23 OECD countries over the period
 1960 to 2005. For that purpose, we first use recently developed unit root
 tests with good size and power. Second, we employ the more powerful panel
 unit root tests of Pesaran (2003) and Smith et al. (2004) that take the
 null of nonstationarity and a bootstrap version of the test of Hadri
 (2000) that takes stationarity as the null hypothesis. Overall, our
 confirmatory analysis renders clear-cut evidence that OECD
 consumption-income ratios contain a unit root. 
Journal: Applied Economics 
Pages: 2271-2278 
Issue: 17 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949447 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949447 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2271-2278




Template-Type: ReDIF-Article 1.0
Author-Name: Pi-Fem Hsu 
Author-X-Name-First: Pi-Fem 
Author-X-Name-Last: Hsu 
Title: Sources of employment fluctuations in Taiwan's industries and regions 
Abstract:
  This empirical study explores the sources of employment fluctuations in
 Taiwan's industries and regions over the period 1978 to 2004. The
 quarterly growth rates of employment in nine industries and four regions
 are modelled with a structural vector autoregression (VAR), and the
 employment shocks are measured by VAR residuals. The covariance matrix of
 the VAR residuals is decomposed using system estimation method that
 selects the parameters to make the error model close to the covariance
 matrix and, in turn, to estimate the relative importance of national as
 well as industry-specific and region-specific shocks. The empirical
 results show that industry-specific shocks account for the major
 fluctuations in industries and regions. On average, about 83.95% of an
 industry's cyclical variations and 56.28% of the volatility in a region
 may be attributed to industry-specific shocks. National shocks account for
 little employment volatility in industries. Only the finance and personal
 service industries are highly sensitive to national shocks. 
Journal: Applied Economics 
Pages: 2279-2293 
Issue: 17 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949454 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2279-2293




Template-Type: ReDIF-Article 1.0
Author-Name: Elif Akbostanc&#x131; 
Author-X-Name-First: Elif 
Author-X-Name-Last: Akbostanc&#x131; 
Author-Name: G. Ipek Tunc 
Author-X-Name-First: G. 
Author-X-Name-Last: Ipek Tunc 
Author-Name: Serap Turut-As&#x131;k 
Author-X-Name-First: Serap 
Author-X-Name-Last: Turut-As&#x131;k 
Title: Environmental impact of customs union agreement with EU on Turkey's trade in manufacturing industry 
Abstract:
  In this study, we analyse Turkey's manufacturing industry trade by
 estimating sectoral import and export demand equations for 1980-2000. The
 study aims to understand whether the trade in the manufacturing industry
 complies with pollution haven hypothesis, and whether the free trade
 environment provided by the customs union (CU) agreement altered the trade
 pattern of the clean and dirty industries. Results of our econometric
 models have shown that while CU positively affects the import demand, it
 does not have any significant impact on the export demand of Turkish
 manufacturing industry. In terms of the environmental impact, distinction
 between clean and dirty industries turns out to be significant for both
 import and export demand. In general, our findings suggest that both clean
 and dirty industries' import demand increased during the study period. In
 terms of export demand, clean industries' export demand declines whereas
 dirty industries' export demand increases compared to the total demand. 
Journal: Applied Economics 
Pages: 2295-2304 
Issue: 17 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949405 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949405 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2295-2304




Template-Type: ReDIF-Article 1.0
Author-Name: Darold Barnum 
Author-X-Name-First: Darold 
Author-X-Name-Last: Barnum 
Author-Name: John Gleason 
Author-X-Name-First: John 
Author-X-Name-Last: Gleason 
Title: Bias and precision in the DEA two-stage method 
Abstract:
  In Data Envelopment Analysis (DEA), the two-stage method is a popular
 procedure for accounting for exogenous influences on efficiency. With the
 conventional two-stage method, a DEA is first conducted using only
 traditional (endogenous) inputs and outputs. Then, the first-stage DEA
 scores are regressed on the environmental/contextual (exogenous) inputs of
 interest. The regression outcomes are used to identify exogenous inputs
 that influence the first-stage DEA scores to a statistically significant
 degree, and to adjust DEA scores to account for these influences. Herein,
 it is demonstrated empirically that the conventional method exhibits
 substantial bias and low precision, with the degree of bias and precision
 affected by input variance and correlation. A reverse two-stage procedure
 that yields estimates without the bias and precision problems that
 compromise the validity of the conventional method's estimates is
 suggested. 
Journal: Applied Economics 
Pages: 2305-2311 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949470 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949470 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2305-2311




Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Hinloopen 
Author-X-Name-First: Jeroen 
Author-X-Name-Last: Hinloopen 
Author-Name: Charles van Marrewijk 
Author-X-Name-First: Charles 
Author-X-Name-Last: van Marrewijk 
Title: Empirical relevance of the Hillman condition for revealed comparative advantage: 10 stylized facts 
Abstract:
  The theoretically necessary and sufficient condition for the
 correspondence between 'revealed' comparative advantage and pre-trade
 relative prices derived by Hillman (1980) is analysed empirically for
 virtually all countries of the world over an extended period of time. This
 yields 10 stylized facts, including that (i) violations of the Hillman
 condition are small as a share of the number of observations, but
 substantial as a share of the value of world exports, (ii) violations
 occur relatively frequently in the period 1970-1984 and more rarely in the
 period 1985-1997 and (iii) violations occur foremost in primary product
 and natural resource intensive sectors and for countries in Africa, the
 Middle East, Latin America and Central and Eastern Europe. An additional
 bonus of verifying the Hillman condition in empirical research is its
 ability to identify erroneously classified trade flows. 
Journal: Applied Economics 
Pages: 2313-2328 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949488 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949488 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2313-2328




Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Nicita 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Nicita 
Title: Price elasticities and tax reform in Mexico 
Abstract:
  Price responses are usually estimated for the average household. However,
 different households are unlikely to respond in a similar way to movement
 in prices. Consequently, relying on averages may be misleading when
 examining the behaviour of a particular group of households such as the
 poor. This article uses six household surveys collected in Mexico between
 1989 and 2000 to derive price responses for 10 product groups and for five
 levels of income households. The estimated price elasticities are then fed
 into a micro simulation model to measure the effect of a marginal tax
 reform. The results find that that poorer households tend to react
 substantially more to movement in prices, suggesting the usefulness of
 estimating elasticities that reflect the behavioural responses of the poor
 rather than of the entire population. The micro simulation results
 indicate that reducing the taxes on maize, alcoholic beverages and
 vegetables would be both more equitable and more efficient in terms of
 social welfare. Meanwhile, a reduction in the tax on legumes, sugar, and
 oils and fats, while inefficient, would contribute to reduce inequality. 
Journal: Applied Economics 
Pages: 2329-2335 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970104 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970104 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2329-2335




Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Fuss 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Fuss 
Author-Name: Philip Vermeulen 
Author-X-Name-First: Philip 
Author-X-Name-Last: Vermeulen 
Title: Firms' investment decisions in response to demand and price uncertainty 
Abstract:
  We investigate the effect of demand and price uncertainty on firms'
 planned and realized investment from a panel of manufacturing firms.
 Uncertainty measures are derived from firms' own expectations about demand
 and prices and firm's sales. We find that demand uncertainty at the time
 of planning depresses planned and subsequent realized investment. Firms do
 not revise their plans due to demand uncertainty at the time of spending,
 suggesting that reducing demand uncertainty will only have lagged effects
 on investment. We do not find any effect of price uncertainty. Our results
 are consistent with the behaviour of monopolistic firms with irreversible
 capital. 
Journal: Applied Economics 
Pages: 2337-2351 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600959909 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600959909 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2337-2351




Template-Type: ReDIF-Article 1.0
Author-Name: Florian Hoppner 
Author-X-Name-First: Florian 
Author-X-Name-Last: Hoppner 
Author-Name: Christian Melzer 
Author-X-Name-First: Christian 
Author-X-Name-Last: Melzer 
Author-Name: Thorsten Neumann 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Neumann 
Title: Changing effects of monetary policy in the US-evidence from a time-varying coefficient VAR 
Abstract:
  We estimate a time-varying coefficient VAR model for the US economy to
 analyse (i) if the effect of monetary policy on output has been changing
 systematically over time, and (ii) if monetary policy has asymmetric
 effects over the business cycle. We find that the impact of monetary
 policy shocks has been gradually declining over the sample period (1962 to
 2002), as some theories of the monetary transmission mechanism imply. In
 addition, our results indicate that the effects of monetary policy are
 greater in a recession than in a boom. 
Journal: Applied Economics 
Pages: 2353-2360 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970112 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970112 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2353-2360




Template-Type: ReDIF-Article 1.0
Author-Name: Takaaki Aoki 
Author-X-Name-First: Takaaki 
Author-X-Name-Last: Aoki 
Title: Some aspects on regional integration, comparative advantage and consumer's diversity 
Abstract:
  This article describes one simple Cournot oligopoly model with linear
 inverse demand and international linkage, and tries to analyse how the
 degree of competitiveness, the diversity in comparative advantage,
 consumer preference and market volume are closely interrelated with each
 other in the course of free trade areas (FTA) liberalization. The
 influence of income/substitution effects to firm's profit maximization is
 also examined. My analysis shows some basic results and implications
 regarding the tariff-setting strategies and the incentive for endogenous
 internal liberalization, as well as the role of FTA formation on a stream
 to world-wide liberalization. 
Journal: Applied Economics 
Pages: 2361-2368 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970120 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970120 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2361-2368




Template-Type: ReDIF-Article 1.0
Author-Name: Kristien Werck 
Author-X-Name-First: Kristien 
Author-X-Name-Last: Werck 
Author-Name: Mona Grinwis Plaat Stultjes 
Author-X-Name-First: Mona Grinwis Plaat 
Author-X-Name-Last: Stultjes 
Author-Name: Bruno Heyndels 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Heyndels 
Title: Budgetary constraints and programmatic choices by Flemish subsidized theatres 
Abstract:
  We analyse programmatic choices of Flemish theatres and examine how they
 are affected by the theatres' budgetary situation. Following Lancaster's
 characteristics approach, we identify several output characteristics of
 individual Flemish theatres during the period 1980 to 2000. A simultaneous
 equation approach is used to capture the theatre managers', subsidizing
 government's and consumers' behaviour. We find that changes in the
 budgetary situation of a theatre are translated into changes of both the
 'amount' and the nature of the theatre's output. The budgetary impact on
 artistic choices has intensified since the introduction of a 4-yearly
 instead of yearly allocation of subsidies. The decrease in financial risk
 for the individual theatres leads to an increase in artistic risk-taking. 
Journal: Applied Economics 
Pages: 2369-2379 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970153 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970153 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2369-2379




Template-Type: ReDIF-Article 1.0
Author-Name: Eric Hillebrand 
Author-X-Name-First: Eric 
Author-X-Name-Last: Hillebrand 
Author-Name: Faik Koray 
Author-X-Name-First: Faik 
Author-X-Name-Last: Koray 
Title: Interest rate volatility and home mortgage loans 
Abstract:
  The US economy has experienced substantial fluctuations in real and
 nominal interest rates since the 1970s. This article investigates
 empirically the relationship between home mortgage loans and volatility in
 mortgage rates for the period 1971:02 to 2003:03. Contrary to common
 wisdom, we find a positive relationship between mortgage rate volatility
 and home mortgage loans. Further investigation indicates that this is due
 to volatility in the bond market. In times of high interest volatility,
 households disinvest in government securities and invest in real assets,
 which yields a positive relationship between mortgage rate volatility and
 home mortgage loans. 
Journal: Applied Economics 
Pages: 2381-2385 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949538 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949538 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2381-2385




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Arrazola 
Author-X-Name-First: Maria 
Author-X-Name-Last: Arrazola 
Author-Name: Jose de Hevia 
Author-X-Name-First: Jose de 
Author-X-Name-Last: Hevia 
Title: A simple inflation indicator for the euro zone 
Abstract:
  This article proposes and estimates an inflation indicator for the
 European Monetary Union (EMU). This indicator is set up so that it is
 contemporarily not affected by the changes in price differentials among
 EMU countries. The results show that the Monetary Union Index of Consumer
 Prices (MUICP), which is the inflation measure that the European Central
 Bank (ECB) takes as a reference for monetary policy purposes, could be
 understating the value of the inflation in the euro zone. It is also
 concluded that regional peculiarities are fundamental in the evolution of
 prices in the different EMU countries. 
Journal: Applied Economics 
Pages: 2387-2394 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600959917 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600959917 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2387-2394




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer 
Author-X-Name-First: Richard 
Author-X-Name-Last: Thalheimer 
Author-Name: Mukhtar Ali 
Author-X-Name-First: Mukhtar 
Author-X-Name-Last: Ali 
Title: Table games, slot machines and casino revenue 
Abstract:
  The main focus of this study is to assess the influence of table games on
 slot machine and total casino revenues. The subjects of the analysis are
 24 rierboat casinos in the midwestern states of Illinois, Iowa and
 Missouri and three racinos in Iowa. A racino is a parimutuel racetrack
 which also offers slot machine gaming to its customers. Two econometric
 models were developed, one for slot machine revenue and one for total
 (slot machine plus table game) revenue at riverboats and racinos. Of
 particular interest is the effect on slot machine and total revenue of
 adding table games to the gaming operation. Slot machine revenue was found
 to increase with the number of slot machines and decrease with the number
 of table games. Slot machine revenue was estimated to decrease by 11.5% in
 the presence of 40 table games, the mean number of table games over the
 sample. Total win was found to increase with an increase in both slot
 machines and table games. The elasticity of total win with respect to the
 number of slot machines and table games was estimated to be 0.786 and
 0.219, respectively. Total revenue was estimated to increase by 24.5% for
 an additional 40 table games. 
Journal: Applied Economics 
Pages: 2395-2404 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600959891 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600959891 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2395-2404




Template-Type: ReDIF-Article 1.0
Author-Name: Keith F. Gilsdorf 
Author-X-Name-First: Keith 
Author-X-Name-Last: F. Gilsdorf 
Author-Name: Vasant Sukhatme 
Author-X-Name-First: Vasant 
Author-X-Name-Last: Sukhatme 
Title: Tournament incentives and match outcomes in women's professional tennis 
Abstract:
  Our research examines the effect of prize money differentials in women's
 professional tennis tournaments on the probability that the favoured
 player wins the match. This study adds to the existing literature on
 tournament theory through its focus on Rosen's (1986) elimination-style,
 match play tournament model. We estimate a standard probit model using a
 unique data set containing detailed information on prize money,
 player-specific characteristics, and match play outcomes for all
 tournaments played during the 2004 tour sponsored by the Women's Tennis
 Association (WTA). Our results support predictions by Rosen's tournament
 model. Larger prize money differentials have a positive, statistically
 significant effect on the favoured player's probability of winning the
 match. In addition, the number of stages remaining has a significant,
 negative effect on winning, consistent with tournament theory predictions
 associated with the number of contestants in a tournament. 
Journal: Applied Economics 
Pages: 2405-2412 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949512 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949512 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2405-2412




Template-Type: ReDIF-Article 1.0
Author-Name: Lin Lin 
Author-X-Name-First: Lin 
Author-X-Name-Last: Lin 
Author-Name: Hsien-Chang Kuo 
Author-X-Name-First: Hsien-Chang 
Author-X-Name-Last: Kuo 
Author-Name: I-Liang Lin 
Author-X-Name-First: I-Liang 
Author-X-Name-Last: Lin 
Title: Merger and optimal number of firms: an integrated simulation approach 
Abstract:
  In a market where imperfect competition occurs as a result of mergers,
 this study proposes a framework consisting of both efficiency and risk
 analyses that allow the simulation of pro forma mergers and hence the
 determination of the optimal number of firms in the industry. This is
 valuable policy information for regulators concerned with possible
 intervention in the case of competition and anti-trust violations, and
 also for business managers seeking acquisition targets. The framework is
 applied to the banking industry in Taiwan. Results reveal the potential
 for industrial restructuring in a sector where the optimal number of Bank
 Holding Companies (BHCs) is between four and six, subject to whether
 partial control is assumed. 
Journal: Applied Economics 
Pages: 2413-2421 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949504 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949504 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2413-2421




Template-Type: ReDIF-Article 1.0
Author-Name: Ferda Halicioglu 
Author-X-Name-First: Ferda 
Author-X-Name-Last: Halicioglu 
Title: The J-curve dynamics of Turkey: an application of ARDL model 
Abstract:
  This article seeks an empirical evidence for the existence of the J-curve
 phenomenon both in the short-run and long-run for Turkey over the period
 1980-2005. The bounds testing cointegration approach is employed to
 estimate the trade balance model. An augmented form of Granger causality
 analysis is implemented between trade balance, real effective exchange
 rates, foreign income and domestic income. The stability of the short-run
 as well as long-run coefficients in the trade balance model is tested too.
 The empirical results that the J-curve phenomenon is supported only in the
 short-run. Whilst causality tests reveal mix results, the parameter
 stability tests seem to be inconclusive. 
Journal: Applied Economics 
Pages: 2423-2429 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949496 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949496 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2423-2429




Template-Type: ReDIF-Article 1.0
Author-Name: Tiago Neves Sequeira 
Author-X-Name-First: Tiago Neves 
Author-X-Name-Last: Sequeira 
Author-Name: Paulo Macas Nunes 
Author-X-Name-First: Paulo 
Author-X-Name-Last: Macas Nunes 
Title: Does tourism influence economic growth? A dynamic panel data approach 
Abstract:
  On average, tourism-specialized countries grow more than others. This is
 not consistent with the core of modern economic growth theory that
 suggests that economic growth is linked to sectors with high-tech
 intensity and large scale. In this article, we use appropriate panel data
 methods to study the relationship between tourism and economic growth. In
 general, we show that tourism is a positive determinant of economic growth
 both in a broad sample of countries and in a sample of poor countries.
 However, contrary to previous contributions, tourism is not more relevant
 in small countries than in a general sample. 
Journal: Applied Economics 
Pages: 2431-2441 
Issue: 18 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600949520 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949520 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2431-2441




Template-Type: ReDIF-Article 1.0
Author-Name: Xose Rodriguez 
Author-X-Name-First: Xose 
Author-X-Name-Last: Rodriguez 
Author-Name: Julio Pallas 
Author-X-Name-First: Julio 
Author-X-Name-Last: Pallas 
Title: Determinants of foreign direct investment in Spain 
Abstract:
  This study utilizes panel data as a means of examining the determinants
 of foreign direct investment (FDI) in Spain. Data that are taken in the
 period 1993-2002 are used in order to estimate the determinants of FDI, at
 the sectoral level, by differentiating the manufacturing sectors, and at
 the regional level. The analysis investigates the sectoral, regional and
 macroeconomic variables that have successfully attracted FDI inflows from
 those that have not. Empirical results suggest that the differential
 between labour productivity and the cost of labour has been an important
 determinant of FDI in Spain during the period 1993-2002. Factors related
 to demand, the evolution of human capital, the export potential of the
 sectors and certain macroeconomic determinants that measure the
 differential between Spain and the European Union average, also play a
 very important role in attracting flows of FDI. Certain policy issues that
 are relevant to the results are also discussed. 
Journal: Applied Economics 
Pages: 2443-2450 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840701367606 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367606 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2443-2450




Template-Type: ReDIF-Article 1.0
Author-Name: Ignacio Abasolo 
Author-X-Name-First: Ignacio 
Author-X-Name-Last: Abasolo 
Author-Name: Aki Tsuchiya 
Author-X-Name-First: Aki 
Author-X-Name-Last: Tsuchiya 
Title: Understanding preference for egalitarian policies in health: are age and sex determinants? 
Abstract:
  This article presents an empirical assessment of the relevance of
 different factors when understanding preferences for outcome-egalitarian
 policies in health, in particular respondent age and sex. A representative
 sample of the Spanish population was interviewed (n = 1209). After being
 informed that those from the higher social class have longer life
 expectancy at birth than those from the lower social class, respondents
 were required to choose between two programmes: to increase life
 expectancy of the two groups by the same amount (the 'distribution
 neutral' programme); and to target the lowest social class group, thereby
 reducing current health inequalities (the 'targeting' or 'egalitarian'
 programme). Two variants, one with and the other without visual aid, are
 used. Majority (69%) of respondents support targeting. An effect of age
 was observed, where younger and older individuals are less likely to
 target the egalitarian policy than those in middle age. However,
 individual's sex was not associated with targeting behaviour. In addition,
 right-wingers or/and individuals living in a high per capita income region
 are less likely to target. On the other hand, neither individual's
 education nor household income has a significant impact on targeting.
 Finally, regarding the two variants, results suggest that the visual aid
 is associated with less targeting. 
Journal: Applied Economics 
Pages: 2451-2461 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993940 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2451-2461




Template-Type: ReDIF-Article 1.0
Author-Name: David Aristei 
Author-X-Name-First: David 
Author-X-Name-Last: Aristei 
Author-Name: Luca Pieroni 
Author-X-Name-First: Luca 
Author-X-Name-Last: Pieroni 
Title: A double-hurdle approach to modelling tobacco consumption in Italy 
Abstract:
  This article analyzes the determinants of tobacco expenditures for a
 sample of Italian households. A Box-Cox double-hurdle model adjusted for
 heteroscedasticity is estimated to account for separate individual
 decisions concerning smoking participation and tobacco consumption and to
 correct for nonnormality in the bivariate distribution of the error terms.
 Nested univariate and bivariate models are found to be excessively
 restrictive, supporting the adequacy of a generalized specification.
 Estimation results show that consumption decisions are significantly
 affected by income and demographic characteristics. In particular, income
 positively impacts tobacco expenditure, while participation probability
 substantially declines as age increases. The existence of significant
 gender differences in both smoking participation and tobacco consumption
 patterns is found, while high education and white-collar occupation
 reduces the likelihood to smoke and tobacco expenditure levels. Single
 adult households have a lower probability of smoking initiation even if,
 conditional on smoking, they consume more. Finally, complementarity
 between tobacco and alcohol beverages suggests the necessity of joint
 public health strategies. 
Journal: Applied Economics 
Pages: 2463-2476 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970229 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970229 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2463-2476




Template-Type: ReDIF-Article 1.0
Author-Name: Jorge Chami Batista 
Author-X-Name-First: Jorge Chami 
Author-X-Name-Last: Batista 
Title: Competition between Brazil and other exporting countries in the US import market: a new extension of constant-market-shares analysis 
Abstract:
  This article develops a new extension of the constant-market-shares
 model, attributing the gains or losses of market share of an exporter in a
 specific market to its competitors. The method is then applied to Brazil's
 exports of manufactured products to the US market, determining from which
 countries and by how much Brazil gained market share, and to which
 countries Brazil lost market share in the period between 1992, 1999 and
 2004. The bilateral gains and losses of Brazil to OECD countries are shown
 to be related to changes in the relative unit labour costs of these
 countries through a two-period panel data analysis. 
Journal: Applied Economics 
Pages: 2477-2487 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970203 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2477-2487




Template-Type: ReDIF-Article 1.0
Author-Name: Bhavani Shankar 
Author-X-Name-First: Bhavani 
Author-X-Name-Last: Shankar 
Author-Name: Richard Bennett 
Author-X-Name-First: Richard 
Author-X-Name-Last: Bennett 
Author-Name: Stephen Morse 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Morse 
Title: Production risk, pesticide use and GM crop technology in South Africa 
Abstract:
  Technology involving genetic modification of crops has the potential to
 make a contribution to rural poverty reduction in many developing
 countries. Thus far, pesticide-producing Bacillus thuringensis (Bt)
 varieties of cotton have been the main GM crops under cultivation in
 developing nations. Several studies have evaluated the farm-level
 performance of Bt varieties in comparison to conventional ones by
 estimating production technology, and have mostly found Bt technology to
 be very successful in raising output and/or reducing pesticide input.
 However, the production risk properties of this technology have not been
 studied, although they are likely to be important to risk-averse
 smallholders. This study investigates the output risk aspects of Bt
 technology by estimating two 'flexible risk' production function models
 allowing technology to independently affect the mean and higher moments of
 output. The first is the popular Just-Pope model and the second is a more
 general 'damage control' flexible risk model. The models are applied to
 cross-sectional data on South African smallholders, some of whom used Bt
 varieties. The results show no evidence that a 'risk-reduction' claim can
 be made for Bt technology. Indeed, there is some evidence to support the
 notion that the technology increases output risk, implying that simple
 (expected) profit computations used in past evaluations may overstate true
 benefits. 
Journal: Applied Economics 
Pages: 2489-2500 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970161 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970161 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2489-2500




Template-Type: ReDIF-Article 1.0
Author-Name: Y. -P. Hu 
Author-X-Name-First: Y. -P. 
Author-X-Name-Last: Hu 
Author-Name: L. Lin 
Author-X-Name-First: L. 
Author-X-Name-Last: Lin 
Author-Name: J. -W. Kao 
Author-X-Name-First: J. -W. 
Author-X-Name-Last: Kao 
Title: Time-varying inter-market linkage of international stock markets 
Abstract:
  As a response to the growing concern on the interconnection of
 international stock markets, this study uses the Pena-Box model to capture
 time-varying relationship of the returns of 13 stock indices during
 1993-2002. The results indicate a dynamic relationship of world major
 stock markets over time, which provide new but supplemental evidence on
 the conclusion derived from the conventional confirmatory factor analyses
 in literature. 
Journal: Applied Economics 
Pages: 2501-2507 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970146 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2501-2507




Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Diaz-Mora 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Diaz-Mora 
Title: What factors determine the outsourcing intensity? A dynamic panel data approach for manufacturing industries 
Abstract:
  The present article investigates the determinants of outsourcing
 production using a panel of 93 Spanish manufacturing industries for the
 period 1993 to 2002. Outsourcing is measured as production tasks which are
 contracting out to external suppliers, a more direct and suitable
 indicator. After controlling for unobserved heterogeneity and
 simultaneity, our results show a high persistence of the outsourcing
 intensity. Moreover, outsourcing of production is positively related to
 unit labour costs, skills requirements, national ownership and orientation
 to international markets. We also find evidence for a negative link
 between the outsourcing intensity and the share of small firms. 
Journal: Applied Economics 
Pages: 2509-2521 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970179 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970179 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2509-2521




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee 
Author-X-Name-First: Chien-Chiang 
Author-X-Name-Last: Lee 
Author-Name: Chun-Ping Chang 
Author-X-Name-First: Chun-Ping 
Author-X-Name-Last: Chang 
Title: Trend stationary of inflation rates: evidence from LM unit root testing with a long span of historical data 
Abstract:
  The article applies the LM univariate unit root test recently developed
 by Lee and Strazicich (2003, 2004) to re-examine the validity of trend
 stationary in the inflation rates of 11 OECD and Asian countries using a
 longer span of historical data. Our empirical findings are favourable to
 the trend stationary of the inflation rates when we control the structural
 breaks in series, and therefore they point to the absence of
 hyperinflation in the majority of the countries. The results indicate that
 shocks to inflation rates are temporary and soon converge, with the
 inflation rates being trend stationary. Hence, most structural breaks in
 the inflation rate occur around the Great Depression, World War I, World
 War II, and energy shock periods. For the convergence effect, we repeat
 the unit root tests utilized above for smaller sub-samples so as to
 provide a robust analysis. The outcomes show that by selecting a longer
 data span, we can catch more powerful convergent evidence. Overall, some
 policy implications are obtained in this article. 
Journal: Applied Economics 
Pages: 2523-2536 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2523-2536




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Dell'Anno 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Dell'Anno 
Author-Name: Offiong Helen Solomon 
Author-X-Name-First: Offiong Helen 
Author-X-Name-Last: Solomon 
Title: Shadow economy and unemployment rate in USA: is there a structural relationship? An empirical analysis 
Abstract:
  This article aims to estimate the size of the US shadow economy (SE)
 using a structural equation approach and to evaluate if a structural
 relationship exists between the SE and the unemployment rate (UR) in the
 United States. The size of the SE is estimated to be decreasing over the
 last two decades. We corroborate the existence of a structural
 relationship between the SE and the UR by using a simple theoretical
 model. Furthermore, we extend the Okun's law to estimate the structural
 relationship between growth rate of official GDP, SE and UR. Our results
 indicate a significant positive relationship between the SE and the UR. 
Journal: Applied Economics 
Pages: 2537-2555 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970195 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970195 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2537-2555




Template-Type: ReDIF-Article 1.0
Author-Name: Tatiane Menezes 
Author-X-Name-First: Tatiane 
Author-X-Name-Last: Menezes 
Author-Name: Carlos Azzoni 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Azzoni 
Author-Name: Fernando Silveira 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Silveira 
Title: Demand elasticities for food products in Brazil: a two-stage budgeting system 
Abstract:
  The object of this article is to estimate demand elasticities for a
 basket of staple food important for providing the caloric needs of
 Brazilian households. These elasticities are useful in the measurement of
 the impact of structural reforms on poverty. A two-stage demand system was
 constructed, based on data from Household Expenditure Surveys (POF)
 produced by IBGE (The Brazilian Bureau of Statistics) in 1987/88 and
 1995/96. We have used panel data to estimate the model, and have
 calculated income, own-price, and cross-price elasticities for eight
 groups of goods and services and, in the second stage, for 11 sub groups
 of staple food products. We estimated those elasticities for the whole
 sample of consumers and for two income groups. 
Journal: Applied Economics 
Pages: 2557-2572 
Issue: 19 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970187 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970187 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2557-2572




Template-Type: ReDIF-Article 1.0
Author-Name: Monazza Aslam 
Author-X-Name-First: Monazza 
Author-X-Name-Last: Aslam 
Author-Name: Geeta Gandhi Kingdon 
Author-X-Name-First: Geeta Gandhi 
Author-X-Name-Last: Kingdon 
Title: Gender and household education expenditure in Pakistan 
Abstract:
  Pakistan has very large gender gaps in educational outcomes. One
 explanation could be that girls receive lower educational expenditure
 allocations than boys within the household, but this has never
 convincingly been tested. This article investigates whether the
 intra-household allocation of educational expenditure in Pakistan favours
 males over females. It also explores two different explanations for the
 failure of the extant 'Engel curve' studies to detect
 gender-differentiated treatment in education even where gender bias is
 strongly expected. Using individual level data from the latest household
 survey from Pakistan, we posit two potential channels of gender bias: bias
 in the decision whether to enrol/keep sons and daughters in school, and
 bias in the decision of education expenditure conditional on enrolling
 both sons and daughters in school. In middle and secondary school ages,
 evidence points to significant pro-male biases in both the enrolment
 decision as well as the decision of how much to spend conditional on
 enrolment. However, in the primary school age-group, only the former
 channel of bias applies. Results suggest that the observed strong gender
 difference in education expenditure is a within rather than an across
 household phenomenon. 
Journal: Applied Economics 
Pages: 2573-2591 
Issue: 20 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970252 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970252 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2573-2591




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel 
Author-X-Name-First: Rajeev 
Author-X-Name-Last: Goel 
Title: Unemployment, insurance and smoking 
Abstract:
  Using recent state-level data from the United States, this article
 examines new influences on cigarette demand. In particular, we uniquely
 focus on the effects of unemployment and health insurance coverage on
 smoking. Results show that higher cigarette prices, a lack of health
 insurance and restrictions on smoking at home, all lead to reduced
 smoking. On the other hand, literacy, income, unemployment, workplace
 smoking restrictions, smokeless tobacco taxes and tobacco-producing states
 do not seem to have an appreciable impact. The magnitude of the price
 elasticity of demand is greater than that found in the pre-MSA era. Policy
 implications are discussed. 
Journal: Applied Economics 
Pages: 2593-2599 
Issue: 20 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970278 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970278 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2593-2599




Template-Type: ReDIF-Article 1.0
Author-Name: T. Huw Edwards 
Author-X-Name-First: T. 
Author-X-Name-Last: Huw Edwards 
Title: Implicit trade Costs and European single market enlargement 
Abstract:
  This paper investigates the deeper integration of the new EU accession
 states into the Single Market. Building on the assumption that observed
 trade patterns can be taken to reveal trading costs between members and
 non-members of a bloc, I develop a model-consistent Dixit-Stiglitz general
 equilibrium-based calibration technique. Using this, I investigate
 numerically the effects of the recent EU enlargement, suggesting that
 deeper integration, which removed the border costs implied by 1990s trade
 patterns, could raise trade by 50-100% and incomes in the accession states
 by 10-20%. 
Journal: Applied Economics 
Pages: 2601-2613 
Issue: 20 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970260 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970260 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2601-2613




Template-Type: ReDIF-Article 1.0
Author-Name: Giuliana Parodi 
Author-X-Name-First: Giuliana 
Author-X-Name-Last: Parodi 
Author-Name: Dario Sciulli 
Author-X-Name-First: Dario 
Author-X-Name-Last: Sciulli 
Title: Disability in Italian households: income, poverty and labour market participation 
Abstract:
  This article studies the economic effects of disabled members on Italian
 households, with the aim of identifying a suitable target group for
 welfare policies. Survey of Households Income and Wealth data for the year
 2000 is used. Preliminary results show significant differences in levels
 of income and poverty diffusion to the detriment of households with
 disabled members. We propose an exogenous explanation: the replacement
 ratio between disability benefits and expected labour income shows that
 disability benefits do not compensate the potential incomes of the
 disabled person and of the possible carer, except in households with
 severe socioeconomic disadvantages. We also propose an endogenous
 explanation: applying a logit model we show that the labour market
 participation of the possible carer is reduced in households with disabled
 persons. In order to increase the income of the households with disabled
 members, policy recommendations include the provision of care services and
 structural policies to improve employment, income and educational
 opportunities for households at greatest disadvantage. 
Journal: Applied Economics 
Pages: 2615-2630 
Issue: 20 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970211 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970211 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2615-2630




Template-Type: ReDIF-Article 1.0
Author-Name: Hai-Chin Yu 
Author-X-Name-First: Hai-Chin 
Author-X-Name-Last: Yu 
Author-Name: Ingyu Chiou 
Author-X-Name-First: Ingyu 
Author-X-Name-Last: Chiou 
Author-Name: James Jordan-Wagner 
Author-X-Name-First: James 
Author-X-Name-Last: Jordan-Wagner 
Title: Does the weekday effect of the yen/dollar spot rates exist in Tokyo, London, and New York? An analysis of panel probability distribution 
Abstract:
  Using probability distribution techniques, this article explores whether
 any differences exist between the returns and volatility of yen/dollar
 spot markets in Tokyo, London and New York. After the intraday returns
 were fit into probability distributions, New York is found to have the
 highest return, followed by London, and then Tokyo. In estimating the
 peaks and widths of the distributions of volatility, Tokyo is found to
 have the lowest volatility in the log-normal distribution, while London
 and New York show similar volatility distributions, implying similar
 investor risk-return preference behaviour in the London and New York
 markets. The findings also imply that arbitrage opportunities between
 London and New York could be trivial. After estimating the panel
 distribution from Monday to Friday across the three markets, we found that
 the Monday effect disappears. Instead, Tuesday shows negative and
 significantly lower returns. The Friday (weekend) effect no longer exists.
 Instead, Thursday shows a positive and significantly higher return than
 the other weekdays. Finally, the three major currency markets did not
 become more volatile after Japan's deregulation in the foreign currency
 market in April 1998. On the contrary, they show less volatile behaviour
 than before deregulation. The probability distributions of volatility on
 different weekdays did not change significantly after deregulation. 
Journal: Applied Economics 
Pages: 2631-2643 
Issue: 20 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970294 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970294 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2631-2643




Template-Type: ReDIF-Article 1.0
Author-Name: Mubariz Hasanov 
Author-X-Name-First: Mubariz 
Author-X-Name-Last: Hasanov 
Author-Name: Tolga Omay 
Author-X-Name-First: Tolga 
Author-X-Name-Last: Omay 
Title: Nonlinearities in emerging stock markets: evidence from Europe's two largest emerging markets 
Abstract:
  Recent developments in time series analysis allow proper modelling of
 nonlinearities in economic and financial variables. A growing body of
 research was dedicated to investigation of potential nonlinearities in
 conditional mean of many economic and financial variables, mainly
 concentrating in developed economies. However, nonlinearities in financial
 variables in developing economies have not been fully examined yet. In
 this article we investigate potential nonlinearity and cyclical behaviour
 of stock returns in Europe's two largest emerging stock markets, mainly in
 the Greek and Turkish stock markets. Specifically, we use STAR family
 models, which allow to model nonlinearities in the conditional mean, for
 modelling monthly returns on stock exchange indices of the Athens Stock
 Exchange and Istanbul Stock Exchange. Although we find no nonlinearity in
 conditional variance, we do find strong evidence in favour of nonlinear
 adjustment of stock returns. It is found that allowing for nonlinearity in
 conditional mean results in a superior model and provides good
 out-of-sample forecasts, which contradicts to efficient market hypothesis. 
Journal: Applied Economics 
Pages: 2645-2658 
Issue: 20 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970310 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970310 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2645-2658




Template-Type: ReDIF-Article 1.0
Author-Name: Conor Keelan 
Author-X-Name-First: Conor 
Author-X-Name-Last: Keelan 
Author-Name: Carol Newman 
Author-X-Name-First: Carol 
Author-X-Name-Last: Newman 
Author-Name: Maeve Henchion 
Author-X-Name-First: Maeve 
Author-X-Name-Last: Henchion 
Title: Quick-service expenditure in Ireland: parametric vs. semiparametric analysis 
Abstract:
  The aim of this study is to identify the economic and socio-economic
 factors influencing Irish households' expenditure on quick-service meals,
 a particularly dynamic component of the foodservice industry, and to
 determine the extent to which these factors have changed over the course
 of the 1990s. Maximum likelihood estimation and semiparametric
 alternatives are considered with the conclusion that in this instance
 semiparametric techniques do not offer a viable alternative to maximum
 likelihood estimation of tobit models, even in the presence of
 heteroscedasticity and non-normality. The results revel that household
 income, place of residence, commuters and household size have significant
 and positive influences on quick-service expenditure. Older families,
 single households and married couples, together with homeowners, display
 reduced expenditure. The opportunity cost of time is positively related to
 quick-service expenditure, consistent with theory, while health knowledge
 has a negative impact on quick-service consumption. 
Journal: Applied Economics 
Pages: 2659-2669 
Issue: 20 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970286 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970286 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2659-2669




Template-Type: ReDIF-Article 1.0
Author-Name: Isil Erol 
Author-X-Name-First: Isil 
Author-X-Name-Last: Erol 
Author-Name: Dogan Tirtiroglu 
Author-X-Name-First: Dogan 
Author-X-Name-Last: Tirtiroglu 
Title: The inflation-hedging properties of Turkish REITs 
Abstract:
  This study empirically tests the inflation-hedging abilities of Turkish
 REITs in comparison to the indices of common stocks listed on the Istanbul
 Stock Exchange (ISE) over the period December 1999 to December 2004. Two
 main factors motivate this study. First, compared to their counterparts in
 developed capital markets, Turkish REITs have some important tax
 incentives as well as flexibility in managing their portfolios. Second,
 the Turkish economy provides a rare and good opportunity to test the
 hedging behaviour of real estate stocks in periods of both high- and
 moderate-inflation rates. The empirical results show that Turkish REITs,
 in general, provide a better hedge against both actual and expected
 inflation than do the ISE common stock indices. Dividing the entire sample
 period into the high- and moderate-inflation sub-periods, we find that the
 hedging ability of REITs is better under high inflation than under
 moderate inflation. 
Journal: Applied Economics 
Pages: 2671-2696 
Issue: 20 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970237 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970237 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2671-2696




Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Bonilla 
Author-X-Name-First: Claudio 
Author-X-Name-Last: Bonilla 
Author-Name: Carlos Maquieira 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Maquieira 
Author-Name: Rafael Romero-Meza 
Author-X-Name-First: Rafael 
Author-X-Name-Last: Romero-Meza 
Title: Nonlinear behaviour of emerging market bonds spreads: the Latin American case 
Abstract:
  In this article we check for nonlinear behaviour of the 10 most important
 Latin American emerging market bonds spreads. Applying the Hinich
 portmanteau bicorrelation test, the BDS test and the Engle LM test, we
 observe systematic nonlinear structure in the spreads series. Our results
 suggest that the nonlinear serial dependencies are episodic in nature. All
 the stock returns series (with the exception of Mexico) are characterized
 by few brief periods of highly significant nonlinearity, followed by long
 time periods in which the returns follow a pure noise process. Our
 findings support the idea that, even in this well informed and
 sophisticated market, the weak-form of the efficient market hypothesis
 cannot be supported. 
Journal: Applied Economics 
Pages: 2697-2702 
Issue: 20 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970245 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970245 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2697-2702




Template-Type: ReDIF-Article 1.0
Author-Name: David Hauner 
Author-X-Name-First: David 
Author-X-Name-Last: Hauner 
Author-Name: Shanaka Peiris 
Author-X-Name-First: Shanaka 
Author-X-Name-Last: Peiris 
Title: Banking efficiency and competition in low income countries: the case of Uganda 
Abstract:
  There is a concern that the state dominated, inefficient and fragile
 banking systems in many low-income countries, especially Sub-Saharan
 Africa, are a major hindrance to economic growth. In this context, this
 article systematically analyses the impact of the far-reaching banking
 sector reforms undertaken in Uganda on banking sector competition and
 efficiency. Using models of banking competition and efficiency that have
 been predominantly estimated in industrial countries, we find that the
 level of competition has significantly increased and has been associated
 with a rise in efficiency of the sector. Moreover, on average, larger
 banks and foreign-owned banks are more efficient than others while smaller
 banks have fallen back in efficiency with the increase in competitive
 pressures. 
Journal: Applied Economics 
Pages: 2703-2720 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600972456 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600972456 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2703-2720




Template-Type: ReDIF-Article 1.0
Author-Name: Elisabeth Mueller 
Author-X-Name-First: Elisabeth 
Author-X-Name-Last: Mueller 
Title: Benefits of control, capital structure and company growth 
Abstract:
  This article studies the influence of the benefits of control on the
 capital structure and the growth of private companies for a sample of 8964
 UK companies with limited liability observed for up to 5 years. It is
 hypothesized that companies in which existing owners would lose more
 control if they expanded, have smaller equity increases, are more highly
 levered and grow more slowly. Potential loss of control is measured as the
 difference in the probability of winning a vote for the largest owner
 before and after a hypothetical equity increase. Evidence is found that is
 consistent with the hypotheses. 
Journal: Applied Economics 
Pages: 2721-2734 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600981622 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600981622 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2721-2734




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Yongqing Wang 
Author-X-Name-First: Yongqing 
Author-X-Name-Last: Wang 
Title: The J-curve: evidence from commodity trade between US and China 
Abstract:
  In testing the short-run (J-curve effect) and the long-run effects of
 currency depreciation on the trade balance many researchers have used
 either trade data between one country and the rest of the world or between
 one country and another trading partner. Both groups are said to suffer
 from aggregation bias. To reduce the bias, in this article we consider
 trade data between one country (the US) and her trading partner (China)
 disaggregated by commodity. We use imports and exports of 88 industries
 (2-digit and 3-digit classifications) and cointegration analysis to show
 that the trade balance of at least 34 of the industries react favourably
 to real depreciation of the dollar. The J-curve effect is detected in 22
 industries. Furthermore, most of these industries that are sensitive to
 currency depreciation are durable commodity groupings. 
Journal: Applied Economics 
Pages: 2735-2747 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970328 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2735-2747




Template-Type: ReDIF-Article 1.0
Author-Name: George Halkos 
Author-X-Name-First: George 
Author-X-Name-Last: Halkos 
Author-Name: Nickolaos Tzeremes 
Author-X-Name-First: Nickolaos 
Author-X-Name-Last: Tzeremes 
Title: Trade efficiency and economic development: evidence from a cross country comparison 
Abstract:
  Economic theory suggests that development is enhanced through income
 growth, which is driven through increased trade. However, the empirical
 evidence of such a relationship most of the times is proved to be weak. In
 this study we try to determine the factors influencing this relationship
 by measuring 'trade efficiency'. Using the data envelopment analysis (DEA)
 window method for a sample of 16 OECD countries, we obtained the
 efficiency scores and the optimal output levels for the inefficient
 countries for a time period of 5 years under consideration. Results drawn
 from the broadly used ratio analysis were also compared to the results
 derived from the DEA model. Our empirical findings show that 'trade
 efficient' countries have clear characteristics like low-exchange rates
 for exports, low R&D intensity, high-value intra industry trade and
 positive impact of net trade on their gross domestic product. 
Journal: Applied Economics 
Pages: 2749-2764 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970302 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970302 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2749-2764




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Moss 
Author-X-Name-First: Charles 
Author-X-Name-Last: Moss 
Author-Name: Troy Schmitz 
Author-X-Name-First: Troy 
Author-X-Name-Last: Schmitz 
Author-Name: A. Schmitz 
Author-X-Name-First: A. 
Author-X-Name-Last: Schmitz 
Title: Segregating genetically modified and nongenetically modified corn in a marketing channel 
Abstract:
  The adoption of GM corn in the United States depends on many factors
 including segregation costs, which have minor impacts on aggregate
 welfare. Because the demand for nonGM corn is small relative to its
 supply, no premium for nonGM corn can be generated in excess of the
 segregation costs. An outward shift in the supply of corn resulting from
 the adoption of GM varieties has a greater impact on aggregate welfare
 than do the segregation costs required to satisfy the GM-free demand. A
 10% increase in the aggregate supply of GM corn increases aggregate
 welfare by more than US $250 million. However, nonadopters of GM corn lose
 while adopters can gain or lose depending on the nature of the aggregate
 demand curve for US corn. 
Journal: Applied Economics 
Pages: 2765-2774 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970336 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970336 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2765-2774




Template-Type: ReDIF-Article 1.0
Author-Name: Hsiao-Tang Hsu 
Author-X-Name-First: Hsiao-Tang 
Author-X-Name-Last: Hsu 
Title: The payoff and implied pricing kernel in REITs 
Abstract:
  This article explores the hybrid character (i.e. the resemblance of both
 stock and bond) of Real Estate Investment Trust (REIT) through the implied
 pricing kernel behind REITs prices. We use the Empirical Pricing kernel
 method (Rosenberg and Engle, 2002) to explore their Payoff probability
 density and extract the implied pricing kernel. To estimate payoff
 probability density, we use asymmetric GARCH model. Results indicate that
 implied pricing kernels flatten in all ranges of low rate of returns and
 decrease exponentially in ranges of high rate of returns. This means the
 REIT pricing kernel resembles a bond when rate of return is low, and a
 stock when it is high. The pattern is consistent between 1970 and 2000. 
Journal: Applied Economics 
Pages: 2775-2783 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970344 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970344 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2775-2783




Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda 
Author-X-Name-First: Kosei 
Author-X-Name-Last: Fukuda 
Title: Model-selection-based unit-root detection in unemployment rates: international evidence 
Abstract:
  A model-selection-based unit-root detection by using the Bayesian
 information criterion is proposed. First, six alternative model classes
 are obtained considering the presence or absence of a unit root and
 considering three kinds of deterministic terms: no constant, constant,
 constant and trend. Second, given the selected model class, the best model
 is selected from the alternative models with different lags. Third, the
 best of the entire model set comprising the six models obtained in the
 preceding step is selected. Finally, whether an observed time series
 contains a unit root is determined on the basis of the selected model.
 Simulation results suggest that the proposed method is at least comparable
 to and often better than the sequential testing method provided by Dolado
 et al. (1990). Empirical results obtained by the proposed method are more
 convincing than those obtained by the sequential testing method and
 suggest that the hysteresis hypothesis can be applied to monthly time
 series of the unemployment rates for all the six countries under
 consideration. 
Journal: Applied Economics 
Pages: 2785-2791 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600970351 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970351 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2785-2791




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Arti Prasad 
Author-X-Name-First: Arti 
Author-X-Name-Last: Prasad 
Author-Name: Baljeet Singh 
Author-X-Name-First: Baljeet 
Author-X-Name-Last: Singh 
Title: A test of the Wagner's hypothesis for the Fiji islands 
Abstract:
  In this article we examine Wagner's law for Fiji for the period 1970 to
 2002. Using the Johansen (1988) test for cointegration, we find one
 cointegration relationship between national output and government
 expenditure. Using five different long run estimators, we find robust
 results on the impact of national income on government expenditure. The
 elasticity ranges from 1.36 to 1.44, implying that a 1% increase in income
 leads to a 1.36-1.44% increase in government expenditure. Moreover, we
 find that in the long run national income Granger causes government
 expenditure. While these results are consistent with Wagner's law, we warn
 policy makers that because Fiji's total debt stands at around 69% of GDP,
 in future the bulk of expenditure will go towards debt financing at the
 expense of productive sectors. 
Journal: Applied Economics 
Pages: 2793-2801 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600972472 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600972472 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2793-2801




Template-Type: ReDIF-Article 1.0
Author-Name: R. Bonci 
Author-X-Name-First: R. 
Author-X-Name-Last: Bonci 
Author-Name: F. Columba 
Author-X-Name-First: F. 
Author-X-Name-Last: Columba 
Title: Monetary policy effects: new evidence from the Italian flow-of-funds 
Abstract:
  New evidence on the transmission of monetary policy to the economy is
 provided through an analysis of the effects of a restrictive monetary
 policy shock on Italian flow of funds over the period 1980 to 2002. Firms
 reduce issuance of debt and decrease the acquisition of financial assets,
 providing no support for the existence of strong financial frictions.
 Following the shock, in the first quarter households increase short-tem
 liabilities and diminish the acquisition of liquid assets and shares. The
 public sector increases net borrowing during the first 2 years. Financial
 corporations decrease their borrowing for three quarters while in the same
 period the foreign sector increases borrowed funds. We claim that our
 results shed new light on the role of the financial decisions of the
 economic sectors in the transmission mechanism of monetary policy. 
Journal: Applied Economics 
Pages: 2803-2818 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840801964492 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964492 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2803-2818




Template-Type: ReDIF-Article 1.0
Author-Name: Kurt Hafner 
Author-X-Name-First: Kurt 
Author-X-Name-Last: Hafner 
Title: The pattern of international patenting and technology diffusion 
Abstract:
  The article focuses on the impact of R&D expenditure on labour
 productivity using international patent applications as a technology
 diffusion indicator. Considering the relationship between research and
 productivity, the pattern of international patenting reflects the channel
 between the source and the destination of transferred technology.
 Accounting for nonstationarity and cointegration, I find that
 patent-related foreign R&D spillovers are present for a panel of 18 OECD
 countries. Moreover, nonG7 OECD countries benefit more from foreign rather
 than domestic R&D activities. Estimates also show that there is no
 significant spillover effect from bilateral trade, but confirm the impact
 of FDI on domestic labour productivity. 
Journal: Applied Economics 
Pages: 2819-2837 
Issue: 21 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600981630 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600981630 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2819-2837




Template-Type: ReDIF-Article 1.0
Author-Name: P. D. Chwelos 
Author-X-Name-First: P. D. 
Author-X-Name-Last: Chwelos 
Author-Name: E. R. Berndt 
Author-X-Name-First: E. R. 
Author-X-Name-Last: Berndt 
Author-Name: I. M. Cockburn 
Author-X-Name-First: I. M. 
Author-X-Name-Last: Cockburn 
Title: Faster, smaller, cheaper: an hedonic price analysis of PDAs 
Abstract:
  We compute quality-adjusted price indexes for personal digital assistants
 (PDAs) for the period 1999 to 2004. Hedonic regressions indicate that
 prices are related to processor generation and clock speed, memory
 capacity, screen size and quality and the presence of a digital camera or
 wireless capability. A particularly salient feature of PDAs is
 portability, where we find: (i) purchasers value the energy density of the
 battery technology (e.g. lithium ion) rather than the battery life in
 hours; and (ii) the physical characteristics of the PDA (e.g. weight,
 volume) are nonlinearly related to price, suggesting that valuation of the
 physical form of PDAs does not bear a simple linear relationship to
 characteristics, either in absolute terms ('smaller is better') or vs. an
 ergonomic 'sweet spot'. Rather, portability characteristics are correlated
 with other desirable attributes, making the relationship between price and
 portability difficult to disentangle. However, hedonic price indexes are
 robust across different measures of the portability of PDAs. Hedonic
 indexes using the dummy variable, characteristics prices, and imputation
 approaches decline on average between 19 and 26% per year. A matched model
 price index computed from a subset of observations declines at 19% per
 year, while a fixed-effects hedonic index declines at 14% per year. 
Journal: Applied Economics 
Pages: 2839-2856 
Issue: 22 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993924 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993924 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2839-2856




Template-Type: ReDIF-Article 1.0
Author-Name: Ines Hardoy 
Author-X-Name-First: Ines 
Author-X-Name-Last: Hardoy 
Author-Name: P&#xe5;l Sch&#xf8;ne 
Author-X-Name-First: P&#xe5;l 
Author-X-Name-Last: Sch&#xf8;ne 
Title: The family gap and family friendly policies: the case of Norway 
Abstract:
  Norway has among the most generous family policies in the world. The most
 recent is the cash-for-care reform, which was implemented in 1998. We
 answer two main questions in this article: What is the level of the family
 gap in such a generous regime and how has it developed as a consequence of
 the latest reform? Results suggest that the family gap is rather modest in
 Norway compared to many other countries and we find no evidence of a
 worsening of the gap in recent years. A positive interpretation of these
 results is that the Norwegian labour market is fairly flexible, in the
 sense that it seems to be able to absorb even more generous family
 policies. 
Journal: Applied Economics 
Pages: 2857-2871 
Issue: 22 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993981 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993981 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2857-2871




Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton 
Author-X-Name-First: James 
Author-X-Name-Last: Thornton 
Author-Name: Jennifer Rice 
Author-X-Name-First: Jennifer 
Author-X-Name-Last: Rice 
Title: Determinants of healthcare spending: a state level analysis 
Abstract:
  Within the high and rising level of healthcare spending for the US as a
 whole is substantial variation in spending across states. Yet relatively
 little attention has been given to the empirical analysis of interstate
 differences in aggregate healthcare expenditures, and therefore little
 empirical evidence exists at the state level to guide policymakers. Using
 data for all 50 states for the year 1998, we estimate an empirical model
 that includes structural and reduced-form healthcare spending equations
 and a health production function to assess the significance, size and
 relative importance of factors that prior research indicates, may play an
 important role in explaining interstate variation in medical care
 expenditures, and the main pathways through which they operate. Our
 results indicate higher levels of healthcare spending for state
 populations with higher income, less education, fewer uninsured residents,
 less healthy lifestyles, larger proportion of elderly residents, greater
 availability of medical care providers and less urbanization. Our findings
 suggest that the most effective cost containment measures may be those
 that increase education and promote healthy lifestyles. Not only do these
 actions lead to reductions in healthcare spending, they also improve the
 health status of the population, and may help to achieve other important
 social policy goals. 
Journal: Applied Economics 
Pages: 2873-2889 
Issue: 22 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993973 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993973 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2873-2889




Template-Type: ReDIF-Article 1.0
Author-Name: C. O. Vargas-Tellez 
Author-X-Name-First: C. O. 
Author-X-Name-Last: Vargas-Tellez 
Title: Purchasing power parity across Mexican cities: a panel data analysis 
Abstract:
  This article presents three different unit root tests for panel data, the
 main objective is to find the level of internal integration market through
 the purchasing power parity (PPP) evidence, based in the Balassa-Samuelson
 approach. Thus, eight kinds of markets, as tradable and nontradable goods
 for 16 main Mexican cities during a 21 year period have been contrasted.
 While two tests showed the PPP validity for seven markets, the other
 rejected it. The results obtained moreover feed the present controversy
 about which test is most appropriate to test the PPP, as soon as it is
 highlighted new elements emerge to explain the half-life analysis. 
Journal: Applied Economics 
Pages: 2891-2899 
Issue: 22 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993965 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993965 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2891-2899




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Myro 
Author-X-Name-First: Rafael 
Author-X-Name-Last: Myro 
Author-Name: Patricio Perez 
Author-X-Name-First: Patricio 
Author-X-Name-Last: Perez 
Author-Name: Alberto Colino 
Author-X-Name-First: Alberto 
Author-X-Name-Last: Colino 
Title: Economic growth in a world of ideas: the US and the leading European countries 
Abstract:
  This article discusses the ideas creation model that was initially
 formulated by Romer and later generalized and empirically applied by
 Jones. In particular, we generalize Jones' model to include catching up to
 a technological frontier, which improves the empirical results for
 European countries, and ensures convergence to the technological frontier
 in the steady state 
Journal: Applied Economics 
Pages: 2901-2909 
Issue: 22 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993957 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993957 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2901-2909




Template-Type: ReDIF-Article 1.0
Author-Name: A. E. Akinlo 
Author-X-Name-First: A. E. 
Author-X-Name-Last: Akinlo 
Title: A cost function analysis of import demand for Nigeria 
Abstract:
  The article uses a translog cost function to examine the substitution
 relations among capital, labour and imports. The results show that capital
 has a substitute relation with domestic labour and import. However, labour
 and import have complementary relationship. The implication of this
 finding is that liberalization policies, if pursued vigorously, could
 impart positively on the demand for labour. In addition, it suggests that
 economic growth could be enhanced through trade liberalization. 
Journal: Applied Economics 
Pages: 2911-2920 
Issue: 22 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993932 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993932 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2911-2920




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Mutz 
Author-X-Name-First: Christine 
Author-X-Name-Last: Mutz 
Author-Name: Thomas Ziesemer 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Ziesemer 
Title: Simultaneous estimation of income and price elasticities of export demand, scale economies and total factor productivity growth for Brazil 
Abstract:
  This article focuses on a growth model in which (unlike other models) low
 (high) export demand elasticities and the fact that developing countries
 are importers of capital goods help explaining the slow (high) growth of
 these countries in the transition and in the steady state. The question
 arises whether export demand elasticities are low or high. For answering
 this question, export demand elasticities for the case of Brazil are
 obtained by estimation of the model. As a by-product of estimating the
 model, we obtain estimates for total-factor productivity growth and for
 scale economies. Based on the results from estimation we calculate
 steady-state growth rates, engine and handmaiden effects of growth as well
 as dynamic steady-state gains from trade. The model and the results are
 discussed in regard to several strands of literature. 
Journal: Applied Economics 
Pages: 2921-2937 
Issue: 22 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993916 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2921-2937




Template-Type: ReDIF-Article 1.0
Author-Name: Petter Vegard Hansen 
Author-X-Name-First: Petter Vegard 
Author-X-Name-Last: Hansen 
Author-Name: Lars Lindholt 
Author-X-Name-First: Lars 
Author-X-Name-Last: Lindholt 
Title: The market power of OPEC 1973-2001 
Abstract:
  We apply a multi-equation dynamic econometric model on monthly data to
 test if the behaviour of OPEC as a whole or different sub-groups of the
 cartel is consistent with the characteristics of dominant producers on the
 world crude oil market in the period 1973-2001. Our results indicate that
 the producers outside OPEC can be described as competitive producers,
 taking the oil price as given and maximizing profits. The OPEC members do
 not fit the behaviour of price-taking producers. Our findings of low
 residual demand price elasticities for OPEC underpin the potential market
 power of the producer group, and are in line with the results in some
 recent energy studies. On the other hand, our findings indicate that
 neither OPEC nor different sub-groups of the cartel can be characterized
 as a dominant producer in the period 1973-1994. However, we find that the
 characteristics of a dominant producer to some extent fit OPEC-Core as
 from 1994. Thus, although OPEC clearly has affected the market price, the
 producer group has not behaved as a pure profit-maximizing dominant
 producer. 
Journal: Applied Economics 
Pages: 2939-2959 
Issue: 22 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600972480 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600972480 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2939-2959




Template-Type: ReDIF-Article 1.0
Author-Name: Jeong-Dong Lee 
Author-X-Name-First: Jeong-Dong 
Author-X-Name-Last: Lee 
Author-Name: Chansoo Park 
Author-X-Name-First: Chansoo 
Author-X-Name-Last: Park 
Author-Name: Dong-Hyun Oh 
Author-X-Name-First: Dong-Hyun 
Author-X-Name-Last: Oh 
Author-Name: Tai-Yoo Kim 
Author-X-Name-First: Tai-Yoo 
Author-X-Name-Last: Kim 
Title: Measuring consumption efficiency with utility theory and stochastic frontier analysis 
Abstract:
  The concept of production efficiency has been studied since the 1960s,
 but consumption activity as well may be inefficient for various reasons,
 such as product complexity, lack of information, the bounded rationality
 of the consumer and imperfect markets, to name a few. This study proposes
 a conceptual framework for measuring the consumption efficiency of
 differentiated products, based on traditional utility theory. It employs
 stochastic frontier analysis (SFA) in an empirical analysis. It makes use
 of hedonic price theory to link traditional utility theory and the SFA
 framework. When the developed model is applied to the Korean personal
 computer market, empirical results indicate the levels and distribution of
 consumption efficiency in that market. The findings afford us a better
 understanding of the characteristics of the innovation process in that
 market. 
Journal: Applied Economics 
Pages: 2961-2968 
Issue: 22 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993908 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993908 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2961-2968




Template-Type: ReDIF-Article 1.0
Author-Name: H. Benitez-Silva 
Author-X-Name-First: H. 
Author-X-Name-Last: Benitez-Silva 
Author-Name: F. Heiland 
Author-X-Name-First: F. 
Author-X-Name-Last: Heiland 
Title: Early claiming of social security benefits and labour supply behaviour of older Americans 
Abstract:
  The labour supply incentives provided by the early retirement rules of
 the United States Social Security Old Age benefits program are of growing
 importance as the Normal Retirement Age (NRA) increases to 67 and the
 labour force participation of older Americans starts to increase. These
 incentives allow individuals who claim benefits before the NRA but
 continue to work, or return to the labour force, to increase their future
 rate of benefit pay by having benefits withheld. Since the adjustment of
 the benefit rate takes place only after the NRA is reached, benefits
 received before the NRA can become actuarially unfair for those who
 continue to work after claiming. Consistent with these incentives,
 estimates from bivariate models of the monthly labour force exit and
 claiming hazards using data from the Health and Retirement Study indicate
 that early claimers who do not withdraw from the labour force around the
 time they claim are increasingly likely to stay in the labour force. 
Journal: Applied Economics 
Pages: 2969-2985 
Issue: 23 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994054 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994054 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:2969-2985




Template-Type: ReDIF-Article 1.0
Author-Name: Craig Depken 
Author-X-Name-First: Craig 
Author-X-Name-Last: Depken 
Author-Name: Arthur Snow 
Author-X-Name-First: Arthur 
Author-X-Name-Last: Snow 
Title: The strategic nature of advertising in segmented markets 
Abstract:
  We develop a simple model in which firm-specific advertising has
 cooperative and predatory effects. Our model is set in a static market
 where firms are naturally segmented into two distinct submarkets: several
 large firms located in the core, with small firms operating as a fringe.
 We test the net effect of opposing market size (cooperative) and market
 share (predatory) effects of both fringe and core firm advertising on the
 advertising decisions of large firms in several US consumer industries.
 Empirically, fringe firm advertising leads to an increase in advertising
 efforts by large firms, implying strategic complementarity. On the other
 hand, increased advertising by core firms in an industry decreases
 advertising expenditures of other core firms, indicating they are
 strategic substitutes. Our findings imply that equilibrium levels of
 advertising can be greater with asymmetric, rather than symmetric,
 strategic interactions. 
Journal: Applied Economics 
Pages: 2987-2994 
Issue: 23 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994047 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:2987-2994




Template-Type: ReDIF-Article 1.0
Author-Name: Donna Ramirez Harrington 
Author-X-Name-First: Donna Ramirez 
Author-X-Name-Last: Harrington 
Author-Name: Madhu Khanna 
Author-X-Name-First: Madhu 
Author-X-Name-Last: Khanna 
Author-Name: George Deltas 
Author-X-Name-First: George 
Author-X-Name-Last: Deltas 
Title: Striving to be green: the adoption of total quality environmental management 
Abstract:
  Many firms are undertaking environment-friendly organizational change by
 applying the philosophy of total quality management with its emphasis on
 reducing waste and increasing efficiency. Their objective is to improve
 their management of pollution and increase customer satisfaction. This
 article investigates the factors that lead to total quality environmental
 management (TQEM) by large firms. We find that internal considerations
 stemming from a firm's technical capability, size (absolute and relative
 to competing firms), extent of operations and volume of past emissions are
 strongly associated with the TQEM adoption decision. The first four
 factors are proxies for the firm's costs and capabilities of adopting TQEM
 while the fifth factor is related to the benefits from increasing
 efficiency and waste reduction, and thus proxies for internally generated
 demand for TQEM. The desire to improve a firm's image with customers,
 earning good-will with regulators and the anticipation of future
 regulations do not appear to be associated with the adoption of TQEM.
 Thus, this article's main conclusion is that the adoption of TQEM is
 associated mostly with internal factors and motives. 
Journal: Applied Economics 
Pages: 2995-3007 
Issue: 23 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994005 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994005 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:2995-3007




Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Frantzen 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Frantzen 
Title: R&D and manufacturing production specialization in developed economies 
Abstract:
  A study of the relation between technology and manufacturing production
 specialization in a series of developed economies is performed by means of
 models relating indicators of revealed symmetric comparative advantage of
 value added and exports to similar measures of comparative performance of
 R&D expenditure, capital intensity, total factor productivity and wage
 costs. The production and R&D specialization are shown to be substantial
 and sticky. This contrasts with the evidence of a substantial degree of
 convergence in the patterns of the other variables. Regression estimates
 show that, although all variables play their part, the impact of
 comparative R&D efforts on production specialization is by far the
 strongest. This impact is found to be stronger in the smaller economies
 and it is especially important in research-intensive industries. The
 influence of comparative wages is, moreover, found to be positive here,
 suggesting the dominance of a labour skill and efficiency wage effect over
 a wage cost competitiveness effect. These findings are shown to conform
 quite well with the predictions of Schumpeterian theory and of certain
 contributions to 'new trade theory' that have stressed the importance of
 dynamic economies of scale. 
Journal: Applied Economics 
Pages: 3009-3027 
Issue: 23 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994013 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994013 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3009-3027




Template-Type: ReDIF-Article 1.0
Author-Name: Arnold Cheng 
Author-X-Name-First: Arnold 
Author-X-Name-Last: Cheng 
Author-Name: Michael Fung 
Author-X-Name-First: Michael 
Author-X-Name-Last: Fung 
Title: Financial market and housing wealth effects on consumption: a permanent income approach 
Abstract:
  The objective of this study is to examine the financial market and
 housing wealth effects on consumption. Housing has the dual functions as
 both a commodity yielding a flow of housing services and an investment
 asset yielding a flow of capital income. With the construction of an
 empirical framework based on the vector autoregression approach, the
 findings from this study suggest that a rise in housing price has both a
 positive wealth effect and a negative price effect on consumption. While
 the positive wealth effect is caused by an increase in capital income, the
 negative price effect is caused by an increase in the cost of housing
 services. In addition, the housing market wealth effect increases, at the
 expense of the price effect, with the level of housing-market leverage.
 These findings imply that the government policy of land supply aiming to
 stimulate the economy should strike a balance between the possible wealth
 and price effects of the housing market. 
Journal: Applied Economics 
Pages: 3029-3038 
Issue: 23 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994021 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3029-3038




Template-Type: ReDIF-Article 1.0
Author-Name: Frode Alfnes 
Author-X-Name-First: Frode 
Author-X-Name-Last: Alfnes 
Author-Name: Kyrre Rickertsen 
Author-X-Name-First: Kyrre 
Author-X-Name-Last: Rickertsen 
Author-Name: &#xd8;ydis Ueland 
Author-X-Name-First: &#xd8;ydis 
Author-X-Name-Last: Ueland 
Title: Consumer attitudes toward low stake risk in food markets 
Abstract:
  Consistency of quality is viewed as important for producers of consumer
 goods. However, there is no literature testing the importance of quality
 consistency on consumers' willingness to pay for consumer goods. We use an
 experimental auction market to investigate how inconsistency in tenderness
 affects consumers' willingness to pay for beef. We find that most
 consumers are risk averse with respect to sensory quality. Both the
 average tenderness and the variance of tenderness affected the consumers'
 willingness to pay for beef. Reducing the uncertainty of the sensory
 quality by categorizing the beef into three tenderness classes increased
 the total value of the beef by 8%. 
Journal: Applied Economics 
Pages: 3039-3049 
Issue: 23 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994062 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994062 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3039-3049




Template-Type: ReDIF-Article 1.0
Author-Name: Stavros Degiannakis 
Author-X-Name-First: Stavros 
Author-X-Name-Last: Degiannakis 
Author-Name: Alexandra Livada 
Author-X-Name-First: Alexandra 
Author-X-Name-Last: Livada 
Author-Name: Epaminondas Panas 
Author-X-Name-First: Epaminondas 
Author-X-Name-Last: Panas 
Title: Rolling-sampled parameters of ARCH and Levy-stable models 
Abstract:
  In this article an asymmetric autoregressive conditional
 heteroskedasticity (ARCH) model is applied to some well-known financial
 indices (DAX30, FTSE20, FTSE100 and SP500), using a rolling sample of
 constant size, in order to investigate whether the values of the estimated
 parameters of the model change over time. Although, there are changes in
 the estimated parameters reflecting that structural properties and trading
 behaviour alter over time, the ARCH model adequately forecasts the
 one-day-ahead volatility. A simulation study has been carried out to
 investigate whether the time-variant attitude holds in the case of a
 generated ARCH data process revealing that either in that case the
 rolling-sampled parameters are time varying. The rolling analysis is also
 applied to estimate the parameters of a Levy-stable distribution. The
 empirical findings support that the stable parameters are also time
 variant. 
Journal: Applied Economics 
Pages: 3051-3067 
Issue: 23 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994039 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3051-3067




Template-Type: ReDIF-Article 1.0
Author-Name: Nil Demet Gungor 
Author-X-Name-First: Nil Demet 
Author-X-Name-Last: Gungor 
Author-Name: Ays&#x131;t Tansel 
Author-X-Name-First: Ays&#x131;t 
Author-X-Name-Last: Tansel 
Title: Brain drain from Turkey: an investigation of students' return intentions 
Abstract:
  The emigration of skilled individuals from Turkey attracted greater media
 attention and the interest of policymakers in Turkey, particularly after
 the experience of recurrent economic crises that have led to an increase
 in unemployment among the highly educated young. This study estimates a
 model of return intentions using a data set compiled from an Internet
 survey of Turkish students residing abroad. The findings of this study
 indicate that, as expected, higher salaries offered in the host country
 and lifestyle preferences, including a more organized environment in the
 host country, increase the probability of student nonreturn. However, the
 analysis also points to the importance of prior return intentions and the
 role of the family in the decision to return to Turkey or stay overseas.
 It is also found that the compulsory service requirement attached to
 government scholarships increases the probability of student return.
 Turkish student association membership also increases return intentions.
 Longer stay durations, on the other hand, decrease the probability of
 return. These findings have important policy implications. 
Journal: Applied Economics 
Pages: 3069-3087 
Issue: 23 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600993999 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993999 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3069-3087




Template-Type: ReDIF-Article 1.0
Author-Name: Koyin Chang 
Author-X-Name-First: Koyin 
Author-X-Name-Last: Chang 
Title: The strategic alliance of the biotechnology firm 
Abstract:
  This article applies the relevant theories of firm organization and
 inter-firm relationships in the high-tech environment to explain the
 institutional reasons that firms choose between internal or external
 approaches. Particularly, this study tries to understand to what extent
 and in what way strategic alliances have impacts on individual firms'
 organizational structure, financial structure and firms' activities. Also
 it tries to find out what type of firms tend to benefit most from
 alliances, and thus use more inter-firm agreements. The theoretical
 findings are that due to liquidity constraint and asymmetric information
 reasons, young, research-intensive firms need to use more alliances to
 survive in the fast changing high-technology industry. The empirical
 analysis employs 3 year panel data and finds that the results are
 consistent with the theoretical predictions. 
Journal: Applied Economics 
Pages: 3089-3100 
Issue: 23 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994104 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994104 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3089-3100




Template-Type: ReDIF-Article 1.0
Author-Name: Alpaslan Akay 
Author-X-Name-First: Alpaslan 
Author-X-Name-Last: Akay 
Author-Name: Elias Tsakas 
Author-X-Name-First: Elias 
Author-X-Name-Last: Tsakas 
Title: Asymptotic bias reduction for a conditional marginal effects estimator in sample selection models 
Abstract:
  In this article we discuss the differences between the average marginal
 effect and the marginal effect of the average individual in sample
 selection models, estimated by the Heckman procedure. We show that the
 bias that emerges as a consequence of interchanging the measures, could be
 very significant, even in the limit. We suggest a computationally cheap
 approximation method, which corrects the bias to a large extent. We
 illustrate the implications of our method with an empirical application of
 earnings assimilation and a small Monte Carlo simulation. 
Journal: Applied Economics 
Pages: 3101-3110 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994096 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994096 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3101-3110




Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim 
Author-X-Name-First: Ruhul 
Author-X-Name-Last: Salim 
Title: Differentials at firm level productive capacity realization in Bangladesh food manufacturing: an empirical analysis 
Abstract:
  This article empirically estimates the firm-specific productive capacity
 realization (PCR) indices using the stochastic frontier production
 function and analyses a number of variables explaining realization rates
 across firms and over time. Following Battese and Coelli (1995) the
 stochastic frontier production function is used to estimate capacity
 output and thereby PCR. Using the Firm level panel data from Bangladesh
 food manufacturing, the results show that capacity realization rates
 widely vary across firms and over time. The average rate of realization is
 about 65% implying that most of the firms are producing away from their
 full production capacity. This article also identifies several
 firm-specific and policy-related variables explaining capacity
 realization. The results show that firm size (SZE) and outward orientation
 (OPN) have positive while capital intensity (CNSTY), market structure
 (MSTRE) and effective rate of assistance (ERA) have negative impact on
 realization rates. Strikingly, both policy-related variables are
 statistically insignificant. Sensitivity analysis using the 'extreme bound
 analysis' also confirms the fragility (insignificance) of these two
 variables. Excessive support to firms and piecemeal liberalization reform
 may be attributed to these results. Thus, further reform of the domestic
 and trade policies are suggested to ensure competition and competitiveness
 of the manufacturing sector and of the country. 
Journal: Applied Economics 
Pages: 3111-3126 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994088 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994088 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3111-3126




Template-Type: ReDIF-Article 1.0
Author-Name: Aashish Mehta 
Author-X-Name-First: Aashish 
Author-X-Name-Last: Mehta 
Author-Name: Hector Villarreal 
Author-X-Name-First: Hector 
Author-X-Name-Last: Villarreal 
Title: Why do diplomas pay? An expanded Mincerian framework applied to Mexico 
Abstract:
  We compare four explanations for the value of diplomas, each of which has
 implications for unemployment and wage variation amongst graduates, most
 of which have not previously been tested for when seeking to explain the
 effects of diplomas. We test for these implications using a refined
 econometric framework, exploiting idiosyncrasies in Mexican labour market
 and educational institutions. Premiums in Mexico appear to result from
 diplomas tied to jobs with downwards rigid wages - an uncommon but simple
 explanation. The standard explanations, including screening, are not
 suggested by Mexican data. Our results illuminate how labour markets
 segmented by diplomas clear. This depends upon the nature of the labour
 market rigidities exactly as predicted by neoclassical theory. 
Journal: Applied Economics 
Pages: 3127-3144 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994120 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994120 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3127-3144




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Martinez-Zarzoso 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Martinez-Zarzoso 
Author-Name: Eva Maria Perez-Garcia 
Author-X-Name-First: Eva Maria 
Author-X-Name-Last: Perez-Garcia 
Author-Name: Celestino Suarez-Burguet 
Author-X-Name-First: Celestino 
Author-X-Name-Last: Suarez-Burguet 
Title: Do transport costs have a differential effect on trade at the sectoral level? 
Abstract:
  This article aims to analyse the determinants of transport costs and to
 investigate their influence in international trade with a sample of
 disaggregate trade data. First, we estimate a transport-cost function
 using cross-section data on maritime and overland transport for four
 sectors: agro-industry, ceramic tiles, motor vehicle parts and
 accessories, and electrical and mechanical household appliances, obtained
 from interviews held with Spanish exporters and logistics operators in
 2001. Second, we study the relationship between transport costs and trade
 and estimate the elasticity of trade with respect to transport costs for
 each sector. Important differences for high value- and low value-added
 sectors are observed. The trade-equation estimation shows that higher
 transport costs significantly deter trade, especially in high value-added
 sectors. 
Journal: Applied Economics 
Pages: 3145-3157 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994179 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994179 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3145-3157




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Jareno 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Jareno 
Title: Spanish stock market sensitivity to real interest and inflation rates: an extension of the Stone two-factor model with factors of the Fama and French three-factor model 
Abstract:
  This study is focussed on estimating the real interest and inflation
 sensitivity in Spanish market, proposing an extension of the Stone (1974)
 two-factor model and controlling for size and growth of the companies
 [Fama and French (1993) three-factor model], because of its importance in
 the stock sensitivity shown by previous literature. I also study the
 classical explanatory factors of the stock sensitivity: leverage and
 liquidity level of the firms. The Spanish stock response is similar to the
 response in other markets, and the 'size' is higher than 'growth' effect. 
Journal: Applied Economics 
Pages: 3159-3171 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994187 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994187 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3159-3171




Template-Type: ReDIF-Article 1.0
Author-Name: Shu Ling Lin 
Author-X-Name-First: Shu Ling 
Author-X-Name-Last: Lin 
Title: Conditional risk and return in Asian emerging markets: evidence from the banking sector 
Abstract:
  Previous studies reach no consensus on the relationship between risk and
 return using data from one market. This study argues that the market
 factor should be noticed in assessing the risk-return relationship in a
 partially integrated emerging market. The analysis aims to provide new
 insight into the nature of the risk-return relationship by a conditional
 factor GARCH-M framework that controls for time-series effects, to
 investigate the banking sector in five Asian emerging markets of China,
 Hong Kong, Indonesia, Malaysia and Taiwan during the period 1995 to 2004.
 Finally, the study provides evidence on these relations before and after
 the Asian financial crisis of 1997. The results are generally consistent
 across the markets and with expectations, and have implications for
 empirical assessments of the risk-return relationship and diversification. 
Journal: Applied Economics 
Pages: 3173-3183 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994161 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994161 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3173-3183




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee 
Author-X-Name-First: Chien-Chiang 
Author-X-Name-Last: Lee 
Author-Name: Mei-Se Chien 
Author-X-Name-First: Mei-Se 
Author-X-Name-Last: Chien 
Title: Stability of money demand function revisited in China 
Abstract:
  As China's economic reforms have undergone significant structural changes
 after 1979, it has been rather difficult to formulate a stable money
 demand function over the period following that year. While previous
 literature on the long-run relationship of money demand in China shows the
 existence of stable money demand, this article revisits the stability of
 the China money demand function over the period after 1979. To employ the
 unit root tests and the cointegration tests with structural break, the
 empirical evidence demonstrates that economic and financial deregulation
 did affect the stability of demand for money in China over the period 1977
 to 2002. Moreover, the estimated long-run income and interest elasticity
 are respectively 1.01 (1.11) and -0.14 (-0.08) using the real M1 (M2)
 equation. In addition, real income and the interest rate are found to be
 weakly exogenous. We overall do find structural breakpoints mainly in 1980
 and 1993, and they look to match clearly with corresponding critical
 financial and economic incidents. 
Journal: Applied Economics 
Pages: 3185-3197 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994153 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994153 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3185-3197




Template-Type: ReDIF-Article 1.0
Author-Name: Soosung Hwang 
Author-X-Name-First: Soosung 
Author-X-Name-Last: Hwang 
Author-Name: Byung Khun Song 
Author-X-Name-First: Byung Khun 
Author-X-Name-Last: Song 
Title: 'Irrational exuberance' in the long-run UK stock market 
Abstract:
  Using the macroeconomic data for 1830-2004 in vector error correction
 models, we find that the UK stock price was largely in line with the
 equilibrium level. However, the UK stock price shows large and slow-moving
 positive or negative deviations from the equilibrium, forming cycles of at
 least a few decades in length. We also show that the equity premium is as
 low as 3.1% for the 175 years, which is far smaller than the 6 to 7% that
 has been suggested by many previous studies. Finally, contrary to general
 belief, the 1999 UK stock price did not appear to be overvalued in our
 study. We suggest that the 25 years of sharp increase in the UK stock
 price prior to 1999 can be understood as a mere mean-reversion towards the
 long-run equilibrium level. 
Journal: Applied Economics 
Pages: 3199-3211 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994146 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3199-3211




Template-Type: ReDIF-Article 1.0
Author-Name: Yaping Wang 
Author-X-Name-First: Yaping 
Author-X-Name-Last: Wang 
Author-Name: Shaw Chen 
Author-X-Name-First: Shaw 
Author-X-Name-Last: Chen 
Author-Name: Bing-Xuan Lin 
Author-X-Name-First: Bing-Xuan 
Author-X-Name-Last: Lin 
Author-Name: Liansheng Wu 
Author-X-Name-First: Liansheng 
Author-X-Name-Last: Wu 
Title: The frequency and magnitude of earnings management in China 
Abstract:
  Earnings management is an indicator of the corporate governance quality
 and investor protection standard. We study the frequencies and magnitudes
 of earnings management under two different thresholds, zero earnings and
 prior earnings, in the Chinese market from 1997 to 2004. We model earnings
 as a mixed-normal distribution and obtain parameter estimators that
 measure the frequency and magnitude of earnings management. We show that
 the practice of earnings management has gone up both in frequency and
 magnitude during the post-2000 period. We also find that the frequency and
 magnitude of earnings management are higher when firms try to avoid
 negative earnings than when firms try to report earnings increase. Our
 findings reflect the current economic environment in China and caution
 investors on the low-disclosure quality in the Chinese stock market. 
Journal: Applied Economics 
Pages: 3213-3225 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3213-3225




Template-Type: ReDIF-Article 1.0
Author-Name: Ekrem Gul 
Author-X-Name-First: Ekrem 
Author-X-Name-Last: Gul 
Author-Name: Sezgin Acikalin 
Author-X-Name-First: Sezgin 
Author-X-Name-Last: Acikalin 
Title: An examination of the Fisher Hypothesis: the case of Turkey 
Abstract:
  This study examines the famous Fisher Hypothesis (FH) for Turkey. FH
 asserts that nominal interest rates adjust on a one-to-one basis to
 expected changes in inflation rates. Using the Johansen cointegration
 method for the Turkish monthly interest rate and inflation rate data, we
 find that it is possible to determine the long-run relationship&#x2014;but
 not the one-to-one basis&#x2014;between nominal interest rates and
 inflation. Our findings suggest that full FH does not hold but there is a
 very powerfull Fisher effect in the case of Turkey from 1990 to 2003. 
Journal: Applied Economics 
Pages: 3227-3231 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994112 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994112 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3227-3231




Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Jellal 
Author-X-Name-First: Mohamed 
Author-X-Name-Last: Jellal 
Author-Name: Christophe Nordman 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Nordman 
Author-Name: Francois-Charles Wolff 
Author-X-Name-First: Francois-Charles 
Author-X-Name-Last: Wolff 
Title: Evidence on the glass ceiling effect in France using matched worker-firm data 
Abstract:
  In this article, we investigate the relevance of the glass ceiling
 hypothesis in France, according to which there exist larger gender wage
 gaps at the upper tail of the wage distribution. Using a matched
 worker-firm data set of about 1 30 000 employees and 14 000 employers, we
 estimate quantile regressions and rely on a principal component analysis
 to summarize information specific to the firms. Our different results show
 that accounting for firm-related characteristics reduces the gender
 earnings gap at the top of the distribution, but the latter still remains
 much higher at the top than at the bottom. Furthermore, a quantile
 decomposition shows that the gender wage gap is mainly due to differences
 in the returns to observed characteristics rather than in differences in
 characteristics between men and women. 
Journal: Applied Economics 
Pages: 3233-3250 
Issue: 24 
Volume: 40 
Year: 2008 
X-DOI: 10.1080/00036840600994070 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994070 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3233-3250




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of agriculture: introduction and overview 
Abstract:
  We introduce and summarize the results of nine empirical studies that
 make up this special issue on agricultural economics. The research
 includes studies applied to the US, Bangladesh, Northern Ireland, Germany,
 Poland, Taiwan, Tunisia and Italy. 
Journal: Applied Economics 
Pages: 1-3 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802704236 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802704236 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:1-3




Template-Type: ReDIF-Article 1.0
Author-Name: Masato Nakane 
Author-X-Name-First: Masato 
Author-X-Name-Last: Nakane 
Author-Name: Loren Tauer 
Author-X-Name-First: Loren 
Author-X-Name-Last: Tauer 
Title: Empirical dairy profits under fluctuating prices 
Abstract:
  Production theory suggests that average profits would be greater with
 more variation in prices, if farmers correctly adjust use of inputs and
 outputs to changes in prices. We provide an empirical nonparametric
 analysis of farmers' profits under price changes over 12 years using an
 unbalanced panel of dairy farmers. Each year that a farm participated, we
 have quantities of milk and other outputs and usage of 30 different
 inputs. If that farmer participated in the survey the following year, the
 profit that farmer would have earned that following year using the netput
 vector of the previous year and the price vector of the following year was
 calculated. This passive profit was compared to the actual profit the
 farmer produced the following year. Of the 2371 observations, 56% show
 netput vector changes which enhanced net profit implying that as a group,
 these farmers were not generally able to correctly adjust inputs in
 response to price changes consistently. Logit regression failed to
 differentiate characteristics of farmers who were successful. 
Journal: Applied Economics 
Pages: 5-15 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840801935393 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801935393 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:5-15




Template-Type: ReDIF-Article 1.0
Author-Name: M. N. Asadullah 
Author-X-Name-First: M. N. 
Author-X-Name-Last: Asadullah 
Author-Name: S. Rahman 
Author-X-Name-First: S. 
Author-X-Name-Last: Rahman 
Title: Farm productivity and efficiency in rural Bangladesh: the role of education revisited 
Abstract:
  This article reassesses the debate over the role of education in farm
 production in Bangladesh using a large dataset on rice producing
 households from 141 villages. Average and stochastic production frontier
 functions are estimated to ascertain the effect of education on
 productivity and efficiency. A full set of proxies for farm education
 stock variables are incorporated to investigate the 'internal' as well as
 'external' returns to education. The external effect is investigated in
 the context of rural neighbourhoods. Our analysis reveals that in addition
 to raising rice productivity and boosting potential output, household
 education significantly reduces production inefficiencies. However, we are
 unable to find any evidence of the externality benefit of schooling -
 neighbour's education does not matter in farm production. We discuss the
 implication of these findings for rural education programmes in
 Bangladesh. 
Journal: Applied Economics 
Pages: 17-33 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019125 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019125 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:17-33




Template-Type: ReDIF-Article 1.0
Author-Name: J. Davis 
Author-X-Name-First: J. 
Author-X-Name-Last: Davis 
Author-Name: P. Caskie 
Author-X-Name-First: P. 
Author-X-Name-Last: Caskie 
Author-Name: M. Wallace 
Author-X-Name-First: M. 
Author-X-Name-Last: Wallace 
Title: Economics of farmer early retirement policy 
Abstract:
  We estimate the structural effects, costs and potential efficiency gains
 that might arise from the introduction of an Early Retirement Scheme for
 farmers in Northern Ireland using data from the Farm Business Survey and a
 separate survey of 350 farmers aged between 50 and 65. Modelling results
 suggest that farm scale is a significant determinant of profit per hectare
 but that the age of the operator is not. The economic gains from releasing
 land through a scheme were conditional on transfers bringing about
 significant farm expansion and changes in land use. When these conditions
 were satisfied pensions payments of only about one-third the statutory
 maximum could be justified. Survey responses indicated that participation
 in the scheme would bring forward farmers' retirement age by an average of
 4 years. Moreover, 'deadweight' payments would equate to about 23% of
 potential total expenditure. Overall, the economic case for the
 introduction of an Early Retirement Scheme to Northern Ireland is judged
 to be weak. 
Journal: Applied Economics 
Pages: 35-43 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994211 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994211 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:35-43




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Glauben 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Glauben 
Author-Name: Martin Petrick 
Author-X-Name-First: Martin 
Author-X-Name-Last: Petrick 
Author-Name: Hendrik Tietje 
Author-X-Name-First: Hendrik 
Author-X-Name-Last: Tietje 
Author-Name: Christoph Weiss 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Weiss 
Title: Probability and timing of succession or closure in family firms: a switching regression analysis of farm households in Germany 
Abstract:
  In a two-step econometric approach that corrects for selectivity bias, we
 analyse the determinants of the probability of succession and the timing
 of succession or closure in a unique sample of 233 North-German family
 farms. We set up the succession decision as an intertemporal optimization
 problem. The empirical results show that larger and more profitable farms,
 which are specialized in dairy production are significantly more likely to
 have an intra-family successor. We find that a nonagricultural education
 of the current manager or the successor delay succession. When the family
 decided to stop farming operations, nonagricultural education of the owner
 delays closure of the farm. Closure occurs earlier if the manager is able
 to lease out the land in the process of retirement. Although farm
 households react to incentives originating from tax and pension
 regulations, many important determinants of succession are beyond the
 control of policymakers. 
Journal: Applied Economics 
Pages: 45-54 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131722 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131722 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:45-54




Template-Type: ReDIF-Article 1.0
Author-Name: Axel Tonini 
Author-X-Name-First: Axel 
Author-X-Name-Last: Tonini 
Author-Name: Roel Jongeneel 
Author-X-Name-First: Roel 
Author-X-Name-Last: Jongeneel 
Title: The distribution of dairy farm size in Poland: a markov approach based on information theory 
Abstract:
  This article sets out to analyse the evolution of the dairy farm
 structure of Poland during the post-socialist period. After focusing on
 how the farm structure has changed over time, an instrumental variable
 generalized cross entropy estimator is used to develop and estimate a
 Markov model in order to explore how farm structure will probably develop
 in the coming decade. The estimator exploits both sample data and prior
 information, including general and plausible information on farm mobility
 and structural adjustments based on independent literature. Next, several
 statistical indicators are computed for farm mobility and for which farms
 are likely to survive. Finally, milk projections are made and related to
 policy scenarios. The projections show that the number of dairy farms will
 continue to decline, but the number of medium and large farms will
 increase. In the coming decade, subsistence dairy farms are expected to
 leave the sector slowly. Milk projections show that under the status quo,
 milk quotas will be binding and overrun, whereas under the 'soft landing'
 scenario they appear to be only binding after 2010. 
Journal: Applied Economics 
Pages: 55-69 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701704394 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704394 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:55-69




Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Hao Chang 
Author-X-Name-First: Hung-Hao 
Author-X-Name-Last: Chang 
Author-Name: Richard Boisvert 
Author-X-Name-First: Richard 
Author-X-Name-Last: Boisvert 
Title: Are farmers' decisions to work off the farm related to their decisions to participate in the conservation reserve program? 
Abstract:
  Since both working off the farm and participating in the Conservation
 Reserve Program (CRP) remove important resources from US agricultural
 production, we utilize two econometric specifications to test hypotheses
 regarding whether these two decisions by farmers are independent. We find
 statistical evidence that decisions to participate in CRP and work off the
 farm are correlated. Characteristics of farm households and farm
 operations affect both decisions directly and indirectly, as do local
 economic conditions and participation in other farm programs. To
 illustrate their importance, we simulate the combined direct and indirect
 effects of changes in decoupled payments and farm size on the
 probabilities of farm households engaging in these two activities. We also
 illustrate that the probability of engaging in these two activities
 depends on whether the farm is located in a state, or local agricultural
 district or participates in a related farmland retention program. 
Journal: Applied Economics 
Pages: 71-85 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701720861 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720861 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:71-85




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee 
Author-X-Name-First: Chien-Chiang 
Author-X-Name-Last: Lee 
Author-Name: Yi-Chung Hsu 
Author-X-Name-First: Yi-Chung 
Author-X-Name-Last: Hsu 
Title: Endogenous structural breaks, public investment in agriculture and agricultural land productivity in Taiwan 
Abstract:
  Using time-series data for Taiwan's agricultural sector and with the
 government's public investment in the agricultural sector serving as a
 proxy variable for nonfarm current inputs aside from the original labour
 and capital input variables usually taken into consideration, this article
 examines the relationship between public investment in agriculture (public
 investment/land) and agricultural land productivity (output/land) in
 Taiwan. Our main findings are as follows. First, the cointegration test
 reveals that public investment in agriculture and the productivity of
 agricultural land exhibit a significant positive relationship in the long
 run, where the elasticity of land productivity in relation to public
 investment in agriculture is 0.55. Second, when controlling for endogenous
 structural breaks, the long-run equilibrium relationship for the
 productivity of the agricultural land model is still supported. Third, the
 results of the weak exogeneity test indicate that a causal relationship
 exists in the long run between public investment in agriculture and the
 productivity of land, indicating that the growth of the agricultural
 sector must in the long run be based on the government's public investment
 in the agricultural sector. Furthermore, as the agricultural sector grows,
 this growth is able to stimulate public investment on the part of the
 government in the agricultural sector, so that the two affect each other.
 Fourth, from the short-run error correction model estimation, it is found
 that public investment in agriculture is a major means of adjusting for
 the disequilibria that occur within the system. Fifth, in the short run,
 the unidirectional causal relationship in terms of the productivity of
 agricultural land on public investment in agriculture is established,
 otherwise it is not established. From this it can be seen that in the
 short run, the government is unable to reveal the effectiveness of its
 public investment in agriculture. 
Journal: Applied Economics 
Pages: 87-103 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131748 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131748 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:87-103




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Gil 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Gil 
Author-Name: M. BenKaabia 
Author-X-Name-First: M. 
Author-X-Name-Last: BenKaabia 
Author-Name: H. E. Chebbi 
Author-X-Name-First: H. E. 
Author-X-Name-Last: Chebbi 
Title: Macroeconomics and agriculture in Tunisia 
Abstract:
  This article aims to analyse the impact of changes in the monetary policy
 and the exchange rate on agricultural supply, prices and exports. The
 methodology used is based on the multivariate cointegration approach. Ten
 variables are considered - interest and exchange rates, money supply,
 inflation, agricultural output and input prices, agricultural supply and
 exports, income and the rate of commercial openness. The sample period
 covers annual data from 1967 to 2002. Due to the short sample period, two
 subsystems are considered. First, long-run relationships are identified in
 each subsystem. Second, both subsystems are merged in order to calculate
 the short-run dynamics. The results indicate that changes in macroeconomic
 variables have an effect on the agricultural sector, but the reverse
 effect does not hold. 
Journal: Applied Economics 
Pages: 105-124 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701604420 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604420 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:105-124




Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio Canavari 
Author-X-Name-First: Maurizio 
Author-X-Name-Last: Canavari 
Author-Name: Rodolfo Nayga 
Author-X-Name-First: Rodolfo 
Author-X-Name-Last: Nayga 
Title: On consumers' willingness to purchase nutritionally enhanced genetically modified food 
Abstract:
  This study assesses consumers' willingness to purchase genetically
 modified (GM) food products with two different types of benefits: an input
 (i.e., reduced pesticides) and an output trait benefit (i.e.,
 nutritionally enhanced). Data were collected using a telephone survey of
 an Italian households sample. Discrete choice approach is used to elicit
 the purchase intentions of the respondents. Four separate probit models
 are estimated to examine the effect of various factors on choices. Results
 suggest that majority of Italians are not willing to buy GM food products
 even if they are nutritionally enhanced. However, more consumers are
 willing to buy a nutritionally enhanced plant based GM product than a
 traditional plant based GM (with input trait benefit). Willingness to buy
 for a nutritionally enhanced animal based GM product and for a traditional
 animal based GM product with input trait benefit are similar. Consumers
 unwilling to buy GM food would not buy it even if it is nutritionally
 enhanced and has lower price. However, there is a niche of consumers who
 are willing to buy nutritionally enhanced GM food products even at a
 premium. Knowledge of science and trust in scientists consistently affect
 Italian consumers' willingness to buy the GM products. 
Journal: Applied Economics 
Pages: 125-137 
Issue: 1 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367564 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367564 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:125-137




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: Are devaluations contractionary in MENA countries? 
Abstract:
  Currency depreciation reduces aggregate supply by raising cost of
 imported inputs and increases aggregate demand by increasing its net
 export component. Depending on the relative strength of the two effects,
 depreciation could be expansionary or contractionary. We employ the bounds
 testing approach to cointegration and error-correction modelling to
 evaluate the effects of exchange rate depreciation on output growth, both
 in the short and in the long-run, across a sample of MENA countries.
 Exchange rate fluctuations are found to be important to fluctuations in
 real output growth in the short-run. Anticipated exchange rate
 depreciation may induce long-run expansionary or contractionary effects on
 output supply. Consistent with theory's predictions, the expansionary
 effect of unanticipated depreciation is only transitory on output growth.
 Nonetheless, unanticipated depreciation is found to have a contractionary
 effect on output growth in the long-run via an increase in the cost of
 imported inputs. 
Journal: Applied Economics 
Pages: 139-150 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994195 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994195 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:139-150




Template-Type: ReDIF-Article 1.0
Author-Name: Reed Neil Olsen 
Author-X-Name-First: Reed Neil 
Author-X-Name-Last: Olsen 
Title: Marital status in a developing economy: gender, ethnicity and family structure 
Abstract:
  This article employs population survey data for Trinidad and Tobago to
 investigate the likelihood of being married, both legal and common law in
 the present or the past, as compared to being never married, in a
 developing economy. The article finds support for the sex-specialized
 theory of marital formation, with men valued more and women valued less
 for their economic contributions to the family. Socioeconomic status and
 ethnicity play an important role in marital formation with sex
 specialization less likely to occur among Africans than the more
 advantaged ethnic groups. One of the consistent findings is that family
 structure matters crucially in predicting both legal and common law
 marriages. For example, living in a large, multigenerational household
 tends to impact the likelihood of marriage, as compared to remaining
 single, in opposite ways for men and women, with men in large households
 more likely to be married but women less likely to be married. 
Journal: Applied Economics 
Pages: 151-169 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994203 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:151-169




Template-Type: ReDIF-Article 1.0
Author-Name: Minhaj Mahmud 
Author-X-Name-First: Minhaj 
Author-X-Name-Last: Mahmud 
Title: On the contingent valuation of mortality risk reduction in developing countries 
Abstract:
  Using the contingent valuation method in developing countries to value
 mortality risk reduction is particularly challenging because of the low
 level education of the respondents. In this article, we investigate
 whether some brief training regarding probability and risk concepts has
 any significant effect on the willingness-to-pay (WTP) responses. We
 elicit individuals' risk perceptions by providing information on age
 specific mortality risks and find that people on average overestimate the
 mortality risk at younger ages and underestimate it at older ages. Our
 results indicate a significantly higher WTP for the trained sub-sample and
 WTP is sensitive to the magnitude of risk reduction for both the
 sub-samples. 
Journal: Applied Economics 
Pages: 171-181 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994252 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994252 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:171-181




Template-Type: ReDIF-Article 1.0
Author-Name: Dragan Miljkovic 
Author-X-Name-First: Dragan 
Author-X-Name-Last: Miljkovic 
Title: US and Canadian livestock prices: market integration and trade dependence 
Abstract:
  Cointegration of Canadian and US livestock prices points to the existence
 of market integration in the period January 1996 to December 2004. Trade
 flows of livestock and beef products were nonexistent between Canada and
 the United States for many months in 2003 and 2004 suggesting market
 segmentation. This lack of trade in beef and livestock was due to
 livestock/beef import bans by both countries due to bovine spongiform
 encephalopathy. It was also determined that Canada's trade dependence in
 livestock and beef is cointegrated with Canadian and US livestock prices.
 However, as the trade dependence variable is shocked, the effects on
 Canadian and US prices are opposite although one would expect that in an
 integrated market the price responses to an exogenous shock would be
 similar or statistically identical. This result reinforces the case
 against the use of price cointegration analysis in determining presence
 (or absence) of market integration. Empirical results in this article
 raise some very difficult questions. Gains from trade are well documented.
 Yet, once a country becomes very trade dependent, the prices in it become
 much more vulnerable to exogenous shocks that reduce the trade flows. 
Journal: Applied Economics 
Pages: 183-193 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994260 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994260 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:183-193




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Collins 
Author-X-Name-First: Alan 
Author-X-Name-Last: Collins 
Author-Name: Victor Fernandez-Blanco 
Author-X-Name-First: Victor 
Author-X-Name-Last: Fernandez-Blanco 
Author-Name: Juan Prieto-Rodriguez 
Author-X-Name-First: Juan 
Author-X-Name-Last: Prieto-Rodriguez 
Title: Characteristics of buyers and renters of cultural goods: the case of movies 
Abstract:
  This article identifies the characteristics of consumers of movies,
 watched on videotapes, in their homes. Models of the frequency of movie
 video buying and renting by individuals are estimated using data from the
 Spanish Cultural Consumption Habits Survey (Encuesta sobre Habitos de
 Consumo Cultural). This survey featured information about videotapes
 rented and bought in Spain throughout 1998. Applying a multinomial probit
 modelling framework, this study analyses whether there are two different
 video markets (renting and buying) and any discernible socio-economic
 characteristics for their respective consumers. The influence of film
 genres on the renting of movie videotapes is also considered. 
Journal: Applied Economics 
Pages: 195-210 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007203 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:195-210




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Manuela Gonzalez 
Author-X-Name-First: Maria Manuela 
Author-X-Name-Last: Gonzalez 
Author-Name: Sergio Perelman 
Author-X-Name-First: Sergio 
Author-X-Name-Last: Perelman 
Author-Name: Lourdes Trujillo 
Author-X-Name-First: Lourdes 
Author-X-Name-Last: Trujillo 
Title: Tracking the stepwise effects of regulatory reforms over time: a 'back-door' approach 
Abstract:
  Most of the literature on the efficiency effects of regulatory reforms
 ignores the gradual nature of the implementation of these reforms. This
 article describes a new simple data manipulation that minimizes data
 requirements to measure econometrically the impact on efficiency of each
 stage of multi-stages regulatory reforms. The approach can easily be
 implemented using standard stochastic frontier software programs. It is
 illustrated with data on the Spanish port system, which went through a
 two-stage reform during the 1990s. 
Journal: Applied Economics 
Pages: 211-218 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994294 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994294 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:211-218




Template-Type: ReDIF-Article 1.0
Author-Name: P. Garcia-del-Barrio 
Author-X-Name-First: P. 
Author-X-Name-Last: Garcia-del-Barrio 
Author-Name: L. A. Gil-Alana 
Author-X-Name-First: L. A. 
Author-X-Name-Last: Gil-Alana 
Title: New revelations about unemployment persistence in Spain: time-series and panel data approaches using regional data 
Abstract:
  This article aims to re-examine the persistence of unemployment in Spain.
 For this purpose, we use time-series and cross-section analysis. From a
 time-series viewpoint we disaggregate unemployment by regions, and use
 unit root tests, AR coefficients and fractional differencing parameters as
 indicators of persistence. For the cross-section approach, we first
 estimate mean regressions of regional unemployment rates. Then, using a
 panel of 114 periods and 50 provinces, we estimate pooled, fixed and
 random effects models. Finally, following some recent developments, we
 implement several panel data unit root tests. Previous studies had already
 shown the strong persistence of Spanish unemployment. Our disaggregated
 analysis extends the finding to reveal that the persistence is greater in
 the most industrialized regions. The results also suggest that a
 structural break took place in 1994, implying a decline in the
 unemployment persistence since then. 
Journal: Applied Economics 
Pages: 219-236 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994237 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994237 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:219-236




Template-Type: ReDIF-Article 1.0
Author-Name: Zeynel Abidin Ozdemir 
Author-X-Name-First: Zeynel Abidin 
Author-X-Name-Last: Ozdemir 
Author-Name: Hasan Olgun 
Author-X-Name-First: Hasan 
Author-X-Name-Last: Olgun 
Title: The Feldstein - Hoiroka puzzle across countries 
Abstract:
  This article tests the Feldstein-Hoiroka 'puzzle' for a sample of 49
 countries from two angles; that of co-movements in the saving-investment
 series and the magnitude of the saving-retention coefficient (SRC). The
 overall conclusion we obtain from the results of three different
 cointegration tests leaves no room for 'puzzle' in the majority of the
 countries included in the sample. On the other hand, various statistical
 tests applied to the SRCs show that there are significant differences
 among the high-income, middle-income and low-income country groups with
 regards to the salient aspects of capital mobility. First, there are
 significant differences in the average SRCs of the country groups. Second,
 the SRCs are differently distributed around their means among the country
 groups. The results yielded by a third test dictate that future research
 should pay more attention to the underlying distribution of the SRCs
 within country groups when testing the 'country size' argument. 
Journal: Applied Economics 
Pages: 237-247 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994245 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994245 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:237-247




Template-Type: ReDIF-Article 1.0
Author-Name: J. Colin Glass 
Author-X-Name-First: J. 
Author-X-Name-Last: Colin Glass 
Author-Name: Gillian McCallion 
Author-X-Name-First: Gillian 
Author-X-Name-Last: McCallion 
Author-Name: Donal McKillop 
Author-X-Name-First: Donal 
Author-X-Name-Last: McKillop 
Author-Name: Syamarlah Rasaratnam 
Author-X-Name-First: Syamarlah 
Author-X-Name-Last: Rasaratnam 
Author-Name: Karl Stringer 
Author-X-Name-First: Karl 
Author-X-Name-Last: Stringer 
Title: Best-practice benchmarking in UK higher education: new nonparametric approaches using financial ratios and profit efficiency methodologies 
Abstract:
  The neglected issue of using profit efficiency for the best-practice
 benchmarking of UK universities is explored to see whether this supports
 the policy stance of encouraging more specialized university production.
 The article also investigates whether nonparametric modelling with
 financial ratios, in contrast to nonparametric modelling based on the
 prices and quantities of each university's inputs and outputs, can yield
 ready insights into this profit efficiency issue. The empirical results,
 using two new approaches, confirm that more specialized university
 production yields relatively higher performance on average than less
 specialized production. The results also highlight certain advantages of
 financial ratios modelling. 
Journal: Applied Economics 
Pages: 249-267 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994278 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994278 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:249-267




Template-Type: ReDIF-Article 1.0
Author-Name: Mubariz Hasanov 
Author-X-Name-First: Mubariz 
Author-X-Name-Last: Hasanov 
Title: A note on efficiency of Australian and New Zealand stock markets 
Abstract:
  In this article we re-examine efficiency of the Australia's and New
 Zealand's stock markets, extending recent work of Narayan (2005). For this
 purpose we apply the nonlinear unit root test procedure recently developed
 by Kapetanios et al. (2003). The nonlinear unit root tests reject the null
 hypothesis of unit root, suggesting that the both stock markets are not
 weak form efficient, contrary to the findings of Narayan (2005). 
Journal: Applied Economics 
Pages: 269-273 
Issue: 2 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994286 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994286 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:269-273




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Robson 
Author-X-Name-First: Martin 
Author-X-Name-Last: Robson 
Title: Structural change, specialization and regional labour market performance: evidence for the UK 
Abstract:
  While structural change and regional differences in the pattern of
 employment specialization are widely perceived to be significant factors
 in accounting for disparities in the labour market performance of regions
 in the United Kingdom, there have been relatively few recent attempts to
 gather detailed evidence on this issue. The current study aims to fill
 this gap by examining the effects of structural change and associated
 changes in the pattern of employment specialization on three key
 indicators of regional labour market performance: the rate of employment
 growth, the unemployment rate and the rate of nonemployment. The findings
 indicate that while industry structure has statistically significant
 effects on regional labour market performance, the quantitative
 significance of these effects is relatively small. 
Journal: Applied Economics 
Pages: 275-293 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007278 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007278 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:275-293




Template-Type: ReDIF-Article 1.0
Author-Name: Zlata Hajro 
Author-X-Name-First: Zlata 
Author-X-Name-Last: Hajro 
Author-Name: Joseph Joyce 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Joyce 
Title: A true test: do IMF programs hurt the poor? 
Abstract:
  This article analyses the effect of IMF programs on poverty with data
 from 82 countries during 1985-2000. Two indicators of poverty, infant
 mortality rates and the human development index (HDI), are utilized, and
 the effects of the IMF's concessionary and nonconcessionary programs are
 investigated, as well as economic and institutional factors. The results
 show that the IMF's programs have no significant direct impact on poverty.
 Growth and good institutions, however, both have significant impacts,
 lowering infant mortality and increasing the HDI. The Fund's concessionary
 programs increase the impact of growth on lowering infant mortality, while
 the nonconcessionary programs lower the impact of growth on the HDI.
 &#x201c;Where a great proportion of the people are suffered to languish in
 helpless misery, that country must be ill policed, and wretchedly
 governed; a decent provision for the poor is the true test of
 civilization.&#x201d; -Samuel Johnson, 1791 &#x201c;&#x2026; once a
 country was in crisis, IMF funds and programs not only failed to stabilize
 the situation but in many cases actually made things worse, especially for
 the poor.&#x201d; -Joseph Stiglitz, 2002 
Journal: Applied Economics 
Pages: 295-306 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007229 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007229 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:295-306




Template-Type: ReDIF-Article 1.0
Author-Name: T. Randolph Beard 
Author-X-Name-First: T. Randolph 
Author-X-Name-Last: Beard 
Author-Name: Steven Caudill 
Author-X-Name-First: Steven 
Author-X-Name-Last: Caudill 
Title: Who's number one? - ranking college football teams for the 2003 season 
Abstract:
  This article uses the method of pairwise comparisons to rank college
 football teams. This issue is of some importance due to debate over, which
 team actually won the national championship in 2003-2004. Some polls
 ranked LSU number 1 while others ranked USC number 1. Our method, based on
 pairwise comparisons, finds LSU to be clearly ranked number 1 but USC ends
 up ranked third behind Miami of Ohio. The Southeastern Conference (SEC)
 does well in our ranking scheme because the SEC produced not only the best
 team in the country (LSU) but also the only team to beat the best team in
 the country (UF). We also find that our ranking does not correspond very
 closely to rankings in either the AP or Coaches poll. Auxiliary
 regressions with our rank as the independent variable explain 58 and 50%
 of the variation in the AP and Coaches rankings, respectively. 
Journal: Applied Economics 
Pages: 307-310 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007245 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007245 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:307-310




Template-Type: ReDIF-Article 1.0
Author-Name: Sven Anders 
Author-X-Name-First: Sven 
Author-X-Name-Last: Anders 
Author-Name: Stanley Thompson 
Author-X-Name-First: Stanley 
Author-X-Name-Last: Thompson 
Author-Name: Roland Herrmann 
Author-X-Name-First: Roland 
Author-X-Name-Last: Herrmann 
Title: Markets segmented by regional-origin labelling with quality control 
Abstract:
  It is the objective of this paper to provide a methodological framework
 for the analysis of regional marketing programs which inlclude
 regional-origin labelling as well as quality assurance and control. Such
 programs are increasingly being introduced in Europe and other parts of
 the world as a means against quality uncertainty in globalized markets. An
 equilibrim - displacement model is developed for a segmented market with
 differential qualities that can be utilized for a broad variety of
 marketing programs. It is applied to one selected European case, i.e.
 &#x201c;Gepruefte Qualitaet - Bayern&#x201d;. It is shown that the price
 impacts on high-quality and low-quality segments depend crucially on
 substitutive relationships between the markets and the advertising
 elasticities. Welfare implications for producers in a program depend
 strongly on advertising elasticities, too, but also on the costs of
 participation including quality control and on the co-financing mechanism
 between government and producers. 
Journal: Applied Economics 
Pages: 311-321 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007237 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007237 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:311-321




Template-Type: ReDIF-Article 1.0
Author-Name: Mario Quagliariello 
Author-X-Name-First: Mario 
Author-X-Name-Last: Quagliariello 
Title: Macroeconomic uncertainty and banks' lending decisions: the case of Italy 
Abstract:
  This article discusses the role that macroeconomic uncertainty plays in
 banks' decisions on the optimal asset allocation. Following the portfolio
 model proposed by Baum et al. (2005), the article aims at disentangling
 how Italian banks choose between loans and risk-free assets when
 uncertainty on macroeconomic conditions increases. The econometric results
 confirm that macroeconomic uncertainty is a significant determinant of
 banks' investment decisions, also after controlling for other factors. In
 periods of increasing turmoil, banks' ability to accurately forecast
 future returns is hindered and herding behaviour tends to emerge, as
 witnessed by the reduction of the cross-sectional variance of the share of
 loans held in portfolio. 
Journal: Applied Economics 
Pages: 323-336 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007286 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007286 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:323-336




Template-Type: ReDIF-Article 1.0
Author-Name: Elisabetta Ottoz 
Author-X-Name-First: Elisabetta 
Author-X-Name-Last: Ottoz 
Author-Name: Graziella Fornengo 
Author-X-Name-First: Graziella 
Author-X-Name-Last: Fornengo 
Author-Name: Marina Di Giacomo 
Author-X-Name-First: Marina 
Author-X-Name-Last: Di Giacomo 
Title: The impact of ownership on the cost of bus service provision: an example from Italy 
Abstract:
  This article examines the potential impact of ownership on the cost of
 bus service provision for a sample of 65 private and 12 public companies
 providing local public transit (LPT) in Piedmont (Italy) from 1998 to
 2002. A translog cost frontier is estimated using the model in Battese and
 Coelli (1995) where inefficiency scores are allowed to vary across firms
 and over time. A public ownership dummy is included in the inefficiency
 model and it is always positive and significant. Density and scale
 economies and cost inefficiencies are then computed. Private companies
 seem to experience higher density and scale economies than public ones.
 Cost inefficiencies appear higher in the public sample. 
Journal: Applied Economics 
Pages: 337-349 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007260 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007260 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:337-349




Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim 
Author-X-Name-First: Ruhul 
Author-X-Name-Last: Salim 
Author-Name: Harry Bloch 
Author-X-Name-First: Harry 
Author-X-Name-Last: Bloch 
Title: Business expenditures on R&D and trade performances in Australia: is there a link? 
Abstract:
  This article, empirically examines the dynamic causal link between
 business research and development (R&D) expenditures and trade performance
 in Australia. Based on cointegration and error-correction modelling,
 Granger causality tests, variance decomposition and impulse response
 functions are used for this purpose. The results show that a long-run
 relationship exists between the trade variables and R&D expenditure and a
 unidirectional causality run from R&D expenditure to exports, imports and
 net exports. Further, the variance decomposition and impulse response
 functions confirm that, a significant portion of fluctuations in the trade
 variables beyond the sample period is explained by R&D expenditure.
 Therefore, government policies that lift expenditures on business R&D are
 shown to contribute to the narrowing of Australia's chronic trade
 deficits. 
Journal: Applied Economics 
Pages: 351-361 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007302 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007302 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:351-361




Template-Type: ReDIF-Article 1.0
Author-Name: Jay Squalli 
Author-X-Name-First: Jay 
Author-X-Name-Last: Squalli 
Author-Name: Kenneth Wilson 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Wilson 
Title: Openness and access 
Abstract:
  This article uses a data set from the World Economic Forum that
 quantitatively captures nonexistent or scarce data to test the
 relationship between trade openness and market access. In recognition of
 the diversity and range of trade openness measures, this article uses five
 different openness measures and one measure of market access comprising
 public institutions, the regulatory environment, and network industries.
 This article finds that all three components matter and that better market
 access leads to greater trade openness in both nominal and real terms. 
Journal: Applied Economics 
Pages: 363-379 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007294 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007294 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:363-379




Template-Type: ReDIF-Article 1.0
Author-Name: Cem Payaslioglu 
Author-X-Name-First: Cem 
Author-X-Name-Last: Payaslioglu 
Title: A tail index tour across foreign exchange rate regimes in Turkey 
Abstract:
  This article uses daily foreign exchange data in the USD/TRL foreign
 exchange market to test for structural breaks due to exchange rate regime
 switches. The analysis focus on extreme movements of exchange rate returns
 across different regimes using tail index indicators. Sequential and
 rolling tests, developed by Quintos et al (2001) are used to identify the
 dates of breaks in the Turkish exchange rate for the period 28 January
 1980 to 11 October 2004 and for the sub-periods which cover the fixed
 exchange rate regime from 28 January 1980 to 22 February 2001 and the
 flexible exchange rate regime from 23 February 2001 to 11 October 2004.
 Compelling evidence for breaks in the tail index is found not only across
 but also within different exchange rate regimes - especially within the
 fixed regime. Moreover, breakpoint dates are clustered right before the
 crisis in 2001. This makes the tail index indicator a fairly good
 candidate for a variable to be used in early warning systems for currency
 crises. 
Journal: Applied Economics 
Pages: 381-397 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007211 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007211 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:381-397




Template-Type: ReDIF-Article 1.0
Author-Name: Arielle Beyaert 
Author-X-Name-First: Arielle 
Author-X-Name-Last: Beyaert 
Author-Name: Juan Jose Perez-Castejon 
Author-X-Name-First: Juan Jose 
Author-X-Name-Last: Perez-Castejon 
Title: Markov-switching models, rational expectations and the term structure of interest rates 
Abstract:
  In order to evaluate the efficiency of the monetary transmission
 mechanism, we develop the formulas for testing rational expectations
 theory in the term structure of interest rates with VAR models of
 stochastically switching regimes in which all the parameters are regime
 dependent. These formulas are obtained for the strict version of rational
 expectations as well as for the case where measurement errors are assumed
 in the expectations relationship. They are extensible to other contexts
 that involve variables linked by rational-expectations behaviours. The
 testing procedure is implemented on interest rates of the Spanish
 inter-bank money market. Measurement errors must be assumed to find signs
 favourable to the theory. 
Journal: Applied Economics 
Pages: 399-412 
Issue: 3 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007195 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007195 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:399-412




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of health: introduction and overview 
Abstract:
  We introduce and summarize the results of 12 empirical studies that make
 up this special issue on health economics, covering a wide range of
 countries and issues. 
Journal: Applied Economics 
Pages: 413-415 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840902757241 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902757241 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:413-415




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Spinks 
Author-X-Name-First: Jean 
Author-X-Name-Last: Spinks 
Author-Name: Bruce Hollingsworth 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Hollingsworth 
Title: Cross-country comparisons of technical efficiency of health production: a demonstration of pitfalls 
Abstract:
  It has been proposed that cross-country comparisons of the technical
 efficiency of health production, estimated using data envelopment analysis
 (DEA), have useful applications for policy makers. In theory such an
 analysis utilizes measures of the socioeconomic determinants of health
 relevant to all social policy, not just health policy. Using OECD and WHO
 data, this article critically analyses a number of outstanding theoretical
 questions regarding the use of DEA in this setting. It concludes that
 until such questions are addressed, the resultant implications for policy
 will be based on misleading information. 
Journal: Applied Economics 
Pages: 417-427 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701604354 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:417-427




Template-Type: ReDIF-Article 1.0
Author-Name: Zijun Wang 
Author-X-Name-First: Zijun 
Author-X-Name-Last: Wang 
Title: The determinants of health expenditures: evidence from US state-level data 
Abstract:
  Most macro studies of what determines health expenditures have used the
 same panel of OECD country-level data. Based on a more homogeneous panel
 data set of US states we constructed, this note applies the model
 selection procedure to identify the determinants of health expenditures at
 the state level. We find that the four key factors are gross state
 products, the proportion of the population over the age of 65, the degree
 of urbanization and the number of hospital beds. The cross-section income
 elasticity of health care is around 0.7, implying that health care is a
 necessity rather than a luxury good at the state level. The (relative)
 price of health care varies significantly across states but does not
 appear to have real effects on the amount of resources (measured in real
 dollars) a state devotes to health care. 
Journal: Applied Economics 
Pages: 429-435 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701704527 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704527 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:429-435




Template-Type: ReDIF-Article 1.0
Author-Name: Tetsuji Yamada 
Author-X-Name-First: Tetsuji 
Author-X-Name-Last: Yamada 
Author-Name: Chia-Ching Chen 
Author-X-Name-First: Chia-Ching 
Author-X-Name-Last: Chen 
Author-Name: Tadashi Yamada 
Author-X-Name-First: Tadashi 
Author-X-Name-Last: Yamada 
Author-Name: I-Ming Chiu 
Author-X-Name-First: I-Ming 
Author-X-Name-Last: Chiu 
Author-Name: John Smith 
Author-X-Name-First: John 
Author-X-Name-Last: Smith 
Title: Healthcare services accessibility of children in the USA 
Abstract:
  The increase in the number of children without access to healthcare
 services is an increasingly urgent issue in the United States. By using
 data from the Community Tracking Study Household Survey 1996 to 1997, we
 focus this study on the determinants that cause for the widening gap of
 healthcare service accessibility among children, 18 years and under, in
 the USA. Our empirical results suggest that factors such as the
 out-of-pocket price of healthcare services, household income, years of
 education by parent (or guardian), health insurance coverage, access to
 healthcare provider (availability of regular provider, obtaining an
 appointment, and travelling time) and provider-patient interaction
 strongly determine the actual use of outpatient services by children as
 realized access (i.e. accessibility). 
Journal: Applied Economics 
Pages: 437-450 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701720762 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:437-450




Template-Type: ReDIF-Article 1.0
Author-Name: Marta Pascual 
Author-X-Name-First: Marta 
Author-X-Name-Last: Pascual 
Author-Name: David Cantarero 
Author-X-Name-First: David 
Author-X-Name-Last: Cantarero 
Title: Intergenerational health mobility: an empirical approach based on the ECHP 
Abstract:
  Despite the importance of the study of health mobility, few attempts have
 been made to measure intergenerational mobility not only in the European
 Union but also in other countries such as United States. This article is
 focused on the study of intergenerational health mobility using data from
 the European community household panel (ECHP). In particular, the
 relationships between self-assessed health of parents and their sons are
 analysed. The evidence obtained suggests that, in Spain, sons' reported
 health depends significantly on the self-assessed health of their fathers. 
Journal: Applied Economics 
Pages: 451-458 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367523 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367523 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:451-458




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Bilodeau 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Bilodeau 
Author-Name: Pierre-Yves Cremieux 
Author-X-Name-First: Pierre-Yves 
Author-X-Name-Last: Cremieux 
Author-Name: Pierre Ouellette 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Ouellette 
Title: Hospital performance in a noncompetitive environment 
Abstract:
  In this article, we perform a quantitative analysis of the performance of
 hospital services in a nonmarket environment based on a very complete data
 set. Evaluating efficiency in a nonmarket system is important since the
 absence of market mechanisms could yield large inefficiencies. In fact, we
 show that hospital performance varies greatly across institutions.
 Specifically, our results suggest that hospitals with high levels of
 quasi-fixed factors are less efficient than other institutions. In
 general, hospitals performed very differently even after controlling for
 differences in services, hospital and patient characteristics. All in all,
 increased efficiencies could lead to potential savings, for the Quebec
 government, in the hundreds of millions of dollars. 
Journal: Applied Economics 
Pages: 459-468 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701564384 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564384 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:459-468




Template-Type: ReDIF-Article 1.0
Author-Name: R. Todd Jewell 
Author-X-Name-First: R. 
Author-X-Name-Last: Todd Jewell 
Title: Demand for prenatal health care in South America 
Abstract:
  This study extends existing research on prenatal care demand to the South
 American countries of Bolivia, Columbia and Peru, using data from the
 Demographic and Health Surveys and employing two measures of prenatal
 care: whether prenatal care was ever initiated and a measure of prenatal
 care adequacy that includes information on month of initiation and number
 of visits. The results indicate that prenatal care demand in South America
 is significantly affected by a woman's age, previous pregnancy experience,
 education and marital status. Furthermore, household wealth and the degree
 of wantedness of the child significantly influence prenatal care demand.
 Since prenatal care use has been shown to improve infant and maternal
 health, there may be substantial benefits from economic and public health
 policies that target these determinants of prenatal care in the countries
 under study. 
Journal: Applied Economics 
Pages: 469-479 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701604396 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604396 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:469-479




Template-Type: ReDIF-Article 1.0
Author-Name: Preety Ramful 
Author-X-Name-First: Preety 
Author-X-Name-Last: Ramful 
Author-Name: Xueyan Zhao 
Author-X-Name-First: Xueyan 
Author-X-Name-Last: Zhao 
Title: Participation in marijuana, cocaine and heroin consumption in Australia: a multivariate probit approach 
Abstract:
  This article investigates factors affecting the participation in
 marijuana, cocaine and heroin using micro-unit data from an Australian
 national survey on recreational drugs. Accounting for cross-drug
 correlation potentially induced by unobserved personal characteristics
 such as individual tastes and addictive personalities, we estimate a
 trivariate probit model, where the participation decisions are jointly
 modelled as a system with correlated error terms. The estimated
 correlation coefficients are significant across all three drugs. The study
 provides valuable empirical information on conditional and joint
 probabilities of drug participation. The multivariate approach is shown to
 provide better analysis relative to a univariate approach that does not
 address the endogeneity of all drug participation variables. 
Journal: Applied Economics 
Pages: 481-496 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701522853 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522853 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:481-496




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brent 
Title: A cost-benefit analysis of a condom social marketing programme in Tanzania 
Abstract:
  This article uses the revealed preference, willingness-to-pay approach to
 estimate the benefits in a cost-benefit analysis of a condom social
 marketing (CSM) programme in Tanzania. The demand curve used to derive the
 consumer surplus had unit elasticity and it was estimated from a
 cross-sectional sample of 1272 persons. People were willing to pay
 different prices for the condoms because perceived quality varied. Net
 benefits were close to zero for the minimum estimate that ignored external
 benefits. With external benefits included, the CSM programme was judged
 socially worthwhile with our best estimate producing a benefit-cost ratio
 ranging from 1.31 to 1.72. 
Journal: Applied Economics 
Pages: 497-509 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701522887 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522887 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:497-509




Template-Type: ReDIF-Article 1.0
Author-Name: Erkan Erdil 
Author-X-Name-First: Erkan 
Author-X-Name-Last: Erdil 
Author-Name: I. Hakan Yetkiner 
Author-X-Name-First: I. Hakan 
Author-X-Name-Last: Yetkiner 
Title: The Granger-causality between health care expenditure and output: a panel data approach 
Abstract:
  This study investigates the Granger-causality relationship between real
 per capita GDP and real per capita health care expenditure by employing a
 large macro panel data set with a VAR representation. The findings verify
 that the dominant type of Granger-causality is bidirectional. In instances
 that we found one-way causality, the pattern is not homogenous: Our
 analyses show that one-way causality generally runs from income to health
 in low- and middle-income countries whereas the reverse holds for
 high-income countries. Accordingly, care must be paid in defining the
 dependent and independent variables when specifying the determinants of
 health care expenditure. 
Journal: Applied Economics 
Pages: 511-518 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019083 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:511-518




Template-Type: ReDIF-Article 1.0
Author-Name: Shin-Jong Lin 
Author-X-Name-First: Shin-Jong 
Author-X-Name-Last: Lin 
Title: Economic fluctuations and health outcome: a panel analysis of Asia-Pacific countries 
Abstract:
  The purpose of this study is to assess the effects of economic
 fluctuations on health outcome. By using data obtained from eight
 Asia-Pacific countries over the period 1976 to 2003 and a fixed-effects
 model to conduct the regression analysis, the results of this study
 indicate that unemployment rate is negatively and significantly correlated
 with total mortality and mortality rates from cardiovascular diseases,
 motor vehicle accidents and infant mortality. These findings are
 consistent with the view that health may improve during economic
 downturns. In addition, suicide is found to move countercyclically with
 economic fluctuations. Socioeconomic factors such as age and gender also
 play important roles in affecting the mortality rates. The results also
 show that unemployment has a stronger immediate and contemporaneous,
 rather than a sustained, effect on mortality rates. Finally, this study
 concludes that the effects of economic fluctuations on health outcome tend
 to lead to erroneous conclusions if the fixed-effects problems are
 neglected. The findings of this study shed some light on the link between
 economic fluctuations and health outcome and provide further international
 evidence on this issue. 
Journal: Applied Economics 
Pages: 519-530 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701720754 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720754 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:519-530




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Are health expenditures and GDP characterized by asymmetric behaviour? Evidence from 11 OECD countries 
Abstract:
  In this article, we examine whether per-capita health expenditures and
 per-capita GDP for 11 OECD countries can be characterized by asymmetric
 behaviour. We achieve this goal by using the nonparametric Triples test
 suggested by Randles et al. (1980). We examine two forms of asymmetries,
 namely deepness and steepness. Our main finding is that for 6 out of 11
 countries, namely for the USA, the UK, Japan, Spain, Finland and Iceland,
 either per-capita health expenditures or per-capita GDP are characterized
 by asymmetric behaviour. This finding to some extent casts doubt on those
 studies that model the relationship between health and GDP using unit-root
 and cointegration tests that assume symmetric disturbances. 
Journal: Applied Economics 
Pages: 531-536 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701765304 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765304 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:531-536




Template-Type: ReDIF-Article 1.0
Author-Name: Richard McGregory 
Author-X-Name-First: Richard 
Author-X-Name-Last: McGregory 
Author-Name: M. Scott Niederjohn 
Author-X-Name-First: M. 
Author-X-Name-Last: Scott Niederjohn 
Author-Name: James Peoples 
Author-X-Name-First: James 
Author-X-Name-Last: Peoples 
Title: Do part-time/full-time compensation differentials for nurses vary between the private and public sector? 
Abstract:
  This study examines whether, compared to their private sector
 counterparts, public sector health care employers are at a disadvantage
 using part-time (PT) nurses to lower labour costs. Findings reveal a lack
 of a PT wage differential. Public and Private sector PT nurses are less
 likely to receive health care and pension coverage compared with full-time
 (FT) nurses. Yet, these PT/FT nonwage compensation coverage differentials
 do not vary across sectors. The nonwage findings are interpreted as
 suggesting that public sector health care employers are just as likely as
 private sector health care employers to benefit from cost savings
 associated with lower nonwage coverage for PT nurses. 
Journal: Applied Economics 
Pages: 537-546 
Issue: 4 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701320241 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701320241 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:537-546




Template-Type: ReDIF-Article 1.0
Author-Name: Tjalling van der Goot 
Author-X-Name-First: Tjalling 
Author-X-Name-Last: van der Goot 
Author-Name: Noud van Giersbergen 
Author-X-Name-First: Noud 
Author-X-Name-Last: van Giersbergen 
Author-Name: Michiel Botman 
Author-X-Name-First: Michiel 
Author-X-Name-Last: Botman 
Title: What determines the survival of internet IPOs? 
Abstract:
  This article examines whether the variables that are significant in
 noninternet initial public offering (IPOs) play a similar role for
 internet IPOs. To this end, we analyse the determinants of survival of
 internet firms that have gone public at the NASDAQ stock exchange from
 December 1996 through February 2001. Financial and nonfinancial data
 published in the IPO prospectuses are examined. For our analysis, we use
 the semiparametric Cox proportional hazard model and estimate the effect
 of these variables on the trading (survival) time using the parametric
 Log-logistic survival model. It appears that the average operating history
 of internet IPOs is remarkably small compared to noninternet IPOs, namely
 2.4 and 10 years, respectively. Furthermore, we find that the average
 number of risk factors for internet IPOs is four times higher than the
 number reported for noninternet IPOs. The results of the parametric
 analysis correspond to the semiparametric results. Our findings hold under
 a number of different model specifications and robustness checks. The
 sensitivity analysis in the Log-logistic model reveals that the greatest
 positive effect on the survival time comes from investor demand followed
 by operational cash flow over liabilities. The expected survival time is
 shortened mostly by IPO market level, followed by valuation uncertainty. 
Journal: Applied Economics 
Pages: 547-561 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007369 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007369 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:547-561




Template-Type: ReDIF-Article 1.0
Author-Name: Pablo Fajnzylber 
Author-X-Name-First: Pablo 
Author-X-Name-Last: Fajnzylber 
Author-Name: Ana Fernandes 
Author-X-Name-First: Ana 
Author-X-Name-Last: Fernandes 
Title: International economic activities and skilled labour demand: evidence from Brazil and China 
Abstract:
  Using two new firm-level datasets, this article investigates the impact
 of three international economic activities - the use of imported inputs,
 exports and foreign direct investment - on skilled labour demand in Brazil
 and China. We find that Brazilian firms that engage in these activities
 exhibit a higher skilled labour demand than firms that do not. In
 contrast, Chinese firms that engage in these activities have a lower
 skilled labour demand than firms that do not. Thus, international economic
 activities act as a channel for skill-biased technology diffusion in
 Brazil but have an effect of specialization according to comparative
 advantage in unskilled labour-intensive goods in China. 
Journal: Applied Economics 
Pages: 563-577 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007336 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007336 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:563-577




Template-Type: ReDIF-Article 1.0
Author-Name: Fassil Fanta 
Author-X-Name-First: Fassil 
Author-X-Name-Last: Fanta 
Author-Name: Mukti Upadhyay 
Author-X-Name-First: Mukti 
Author-X-Name-Last: Upadhyay 
Title: Determinants of household supply of labour in food-for-work programme in Tigray, Ethiopia 
Abstract:
  We study the factors that determine the household supply of labour in
 food-for-work (FFW) projects that seek to address food insecurity and help
 capital formation in development. Based on data from a survey conducted in
 2003 in Tigray, Ethiopia, our probit analysis identifies factors that
 significantly affect the household decision to participate in FFW
 programmes. We correct for selection bias, and estimate total and excess
 supply of FFW labour. Our finding of substantial leakages in targeting
 that allow relatively well-off households to obtain FFW employment yield
 important implications for the prevailing FFW wage. We also argue that FFW
 programmes will be more effective if they are designed to account for
 geographic heterogeneity in such factors as male to female labour
 participation differences and the incidence of debilitating diseases. 
Journal: Applied Economics 
Pages: 579-587 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007419 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007419 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:579-587




Template-Type: ReDIF-Article 1.0
Author-Name: Stephanie Brewer 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: Brewer 
Author-Name: Jason Kelley 
Author-X-Name-First: Jason 
Author-X-Name-Last: Kelley 
Author-Name: James Jozefowicz 
Author-X-Name-First: James 
Author-X-Name-Last: Jozefowicz 
Title: A blueprint for success in the US film industry 
Abstract:
  This article analyses motion picture box-office gross revenue using a
 cross-section of films from 1997 to 2001. The dependent variable is total
 domestic box-office revenue. The independent variables investigated
 include: production budget; peak number of screens that the film was shown
 on in theaters; Consumer price index for movie tickets; personal income;
 season and year of the release in theaters; a measure of pre-existing
 audience; aggregate critic rating; MPAA rating; genre; word-of-mouth
 recommendation; the presence of popular stars and the award nominations. A
 distinction is made in the analysis between information available to the
 public prior to the release of the film in theaters (ex ante) and
 information available to the public after the film opens in theaters (ex
 post). Results for the ex ante ordinary least squares (OLS) regression
 reveal positive impacts of budget, summer and holiday release dates,
 critical reviews, sequels and several genres on gross revenue.
 Significant, positive determinants in the ex post OLS regressions include
 budget, the peak number of screens, sequels, critical reviews, summer and
 holiday releases, word-of-mouth, award nominations and star power. 
Journal: Applied Economics 
Pages: 589-606 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007351 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007351 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:589-606




Template-Type: ReDIF-Article 1.0
Author-Name: Atrayee Ghosh Roy 
Author-X-Name-First: Atrayee Ghosh 
Author-X-Name-Last: Roy 
Title: Evidence on economic growth and government size 
Abstract:
  The purpose of this article is to explore the effect of government size
 on economic growth in the United States using time-series data over the
 period 1950 to 1998. A multi-equation model is developed to examine the
 relationship between economic growth and government size. The results
 indicate that government size has a significant and negative effect on
 economic growth. 
Journal: Applied Economics 
Pages: 607-614 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007393 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007393 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:607-614




Template-Type: ReDIF-Article 1.0
Author-Name: Andres Picazo-Tadeo 
Author-X-Name-First: Andres 
Author-X-Name-Last: Picazo-Tadeo 
Author-Name: Francisco Saez-Fernandez 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Saez-Fernandez 
Author-Name: Francisco Gonzalez-Gomez 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Gonzalez-Gomez 
Title: The role of environmental factors in water utilities' technical efficiency. Empirical evidence from Spanish companies 
Abstract:
  This article computes input-specific scores of technical efficiency for a
 sample of water utilities located in the southern Spanish region of
 Andalusia. In addition, differences in efficiency between different
 operating environments are investigated. Concerning the debate about
 ownership and efficiency, we find that privately owned companies
 outperform public utilities in their management of labour. Furthermore,
 technical efficiency is found to be greater among firms located in highly
 populated areas and for utilities providing water services to tourist
 municipalities. Finally, no empirical evidence supporting the greater
 technical efficiency of consortia of water utilities, a managerial
 strategy strongly encouraged by regional politicians, is found. 
Journal: Applied Economics 
Pages: 615-628 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007310 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007310 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:615-628




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Ter Wang 
Author-X-Name-First: Yu-Ter 
Author-X-Name-Last: Wang 
Title: On the simultaneous elimination of export subsidies under oligopoly 
Abstract:
  This article extends the model of Brander and Spencer (1985) to study
 whether the simultaneous elimination of export subsidies is feasible. It
 is shown that the incentive for subsidizing exports to reoccur will exist
 when all subsidizing countries are forced to withdraw their subsidies on
 exports simultaneously. 
Journal: Applied Economics 
Pages: 629-631 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007328 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:629-631




Template-Type: ReDIF-Article 1.0
Author-Name: Victoria Busch 
Author-X-Name-First: Victoria 
Author-X-Name-Last: Busch 
Author-Name: Svenn-&#xc5;ge Dahl 
Author-X-Name-First: Svenn-&#xc5;ge 
Author-X-Name-Last: Dahl 
Author-Name: Dennis Dittrich 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Dittrich 
Title: An empirical study of age discrimination in Norway and Germany 
Abstract:
  Using a questionnaire and a sample of students and personnel managers we
 establish the existence of age discrimination in the hiring process in
 Germany and Norway. As expected, age discrimination is more prominent in
 Germany where the hiring probability of equally qualified applicants is
 reduced by about 22 percentage points due to an age differential of 14
 years as opposed to only 12 percentage points in Norway. Within both
 countries the tendency to discriminate does not differ between students
 and personnel managers and does not depend on the age of the decision
 maker. 'The phenomenon of unemployment among older workers [&#x2026;] is
 characterized less by the risk of becoming unemployed than by the problem
 of remaining unemployed and failing to find new work.' Frerichs and
 Naegele (1998, p. 59) 
Journal: Applied Economics 
Pages: 633-651 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007344 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007344 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:633-651




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou 
Author-X-Name-First: Chris 
Author-X-Name-Last: Sakellariou 
Title: Endogeneity, computers, language skills and wages among university graduates in Vietnam 
Abstract:
  One would expect that returns to supplementary skills in developing
 countries are considerably higher, compared to those documented for
 developed countries (as is the case with returns to schooling). I derive
 estimates of returns to the use of computer and foreign language skills in
 Vietnam after controlling for endogeneity, using a binary instrument
 hypothesized to reflect reconstruction (Doi Moi) policies in Vietnam. I
 find that (a) the use of both computers and language skills is associated
 with very large earnings premiums (b) IV return estimates are as high as
 and sometimes higher than OLS estimates, however, they should be
 interpreted in relation to the instrument used. 
Journal: Applied Economics 
Pages: 653-663 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007377 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007377 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:653-663




Template-Type: ReDIF-Article 1.0
Author-Name: Martina Lawless 
Author-X-Name-First: Martina 
Author-X-Name-Last: Lawless 
Title: Firm export participation: entry, spillovers and tradability 
Abstract:
  This article analyses the choices made by individual firms to enter the
 export market. A probit specification tests the probability of exporting
 in the current period given past exporting experience, controlling for the
 firm's initial export status. This article uses a two-step estimation
 procedure suggested by Orme (1997, 2001), which controls for the influence
 of initial conditions. Significant evidence of sunk costs was found, based
 on the observed persistence of export activity and the explanatory power
 of previous exporting experience on current export status. A measure of
 sector tradability was also used and as expected firms in more easily
 traded sectors were most likely to be exporters. However, little evidence
 of spillovers was found in determining export market participation. 
Journal: Applied Economics 
Pages: 665-675 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007401 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007401 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:665-675




Template-Type: ReDIF-Article 1.0
Author-Name: Gianpaolo Rossini 
Author-X-Name-First: Gianpaolo 
Author-X-Name-Last: Rossini 
Author-Name: Paolo Zanghieri 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Zanghieri 
Title: Current account composition and sustainability of external debt 
Abstract:
  If an economy runs a current account (CA) deficit and finances it via a
 corresponding net inflow of equity capital the external debt (ED) does not
 change, i.e. the CA deficit does not add to ED. This is no paradox. It
 simply comes from the definition of CA deficit and ED, and points to
 different degrees of sustainability of CA deficits according to the way
 they are financed and to the composition of the CA itself. By the
 evaluation of the determinants of interest rates spreads vis a vis US
 lending rates we assess the sustainability of CA deficits. We find that
 FDI net inflows (proxy of equity capital) allow emerging economies to
 sustain larger CA imbalances with respect to CA deficits financed by
 inflows of more liquid assets. Equity capital is a way to finance the CA.
 It does not contribute to the ED and it affects the solvency assessment of
 a country. 
Journal: Applied Economics 
Pages: 677-683 
Issue: 5 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007427 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007427 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:677-683




Template-Type: ReDIF-Article 1.0
Author-Name: D. Law 
Author-X-Name-First: D. 
Author-X-Name-Last: Law 
Author-Name: D. A. Peel 
Author-X-Name-First: D. A. 
Author-X-Name-Last: Peel 
Title: Skewness as an explanation of gambling in cumulative prospect theory 
Abstract:
  Skewness of return has been suggested as a reason why agents might choose
 to gamble, ceteris paribus, in cumulative prospect theory (CPT). We
 investigate the relationship between moments of return in two models where
 agents choices over uncertain outcomes are determined as in CPT. We
 illustrate via examples that in CPT theory, as with expected utility
 theory, propositions that agents have a preference for skewness may be
 invalid. 
Journal: Applied Economics 
Pages: 685-689 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007476 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007476 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:685-689




Template-Type: ReDIF-Article 1.0
Author-Name: Bradley Ewing 
Author-X-Name-First: Bradley 
Author-X-Name-Last: Ewing 
Author-Name: Jamie Kruse 
Author-X-Name-First: Jamie 
Author-X-Name-Last: Kruse 
Author-Name: Mark Thompson 
Author-X-Name-First: Mark 
Author-X-Name-Last: Thompson 
Title: Twister! Employment responses to the 3 May 1999 Oklahoma City tornado 
Abstract:
  This research examined the impact of the 3 May 1999 tornado on the
 Oklahoma City labour market. We estimated time series models that allow
 for time-varying variance in employment growth. The models include
 intervention variables designed to capture the tornado's effect at initial
 impact as well as over the post-tornado period. In terms of total
 employment growth, the Oklahoma City Metropolitan Statistical Area (MSA)
 experienced an increase in employment growth and a reduction in labour
 market risk in the sample period following the tornado. The analysis also
 examined the effect of the weather event on eight industrial sectors. Five
 of eight sectors experienced significant decreases in labour market risk
 after the tornado. Our evidence suggests that Oklahoma City and
 surrounding communities that make up the Metropolitan Statistical Area
 survived the disaster without suffering any extended adverse labour market
 effects. Our results indicate that at least in the aggregate, the labour
 market improved. &#x201c;&#x2026; what has so often excited wonder, the
 great rapidity with which countries recover from a state of devastation;
 the disappearance, in a short time, of all traces of the mischiefs done by
 earthquakes, floods, hurricanes, and the ravages of war &#x2026; all the
 inhabitants are ruined, and yet in a few years after, everything is much
 as it was before.&#x201d; - J.S. Mill (1848) 
Journal: Applied Economics 
Pages: 691-702 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007468 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007468 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:691-702




Template-Type: ReDIF-Article 1.0
Author-Name: F. G. Mixon 
Author-X-Name-First: F. G. 
Author-X-Name-Last: Mixon 
Author-Name: T. D. Pousson 
Author-X-Name-First: T. D. 
Author-X-Name-Last: Pousson 
Author-Name: T. G. Green 
Author-X-Name-First: T. G. 
Author-X-Name-Last: Green 
Title: Toddler economicus: childhood habit cessation in a Beckerian Model of pacifier use 
Abstract:
  As a test of elements of Gary Becker's model of habitual behaviours, the
 present study examines another potential example of a habit - pacifier use
 - within the youngest segment of the population, infants and toddlers. To
 explore the facets of a child's pacifier habit, we make use of an
 extensive questionnaire on the effectiveness of several proposed methods
 for stopping a child's pacifier consumption. Results indicate that
 children's pacifier use approaches the habit/addiction threshold, and it
 is best alleviated with abrupt cessation, or 'cold turkey.' Interestingly,
 our empirical finding that 'cold turkey' dominates or is superior to other
 methods of getting children to stop relying on pacifier use (e.g. limiting
 time of use, altering the pacifier's tip, etc.) has two implications.
 First, it supports the Beckerian notion that a child's pacifier habit
 approaches the habit/addiction threshold, as stated above. Second, it
 contradicts suggestions from many in the health profession to seek methods
 other than 'cold turkey' to stop a child's pacifier use. 
Journal: Applied Economics 
Pages: 703-713 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007484 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007484 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:703-713




Template-Type: ReDIF-Article 1.0
Author-Name: J. Frank 
Author-X-Name-First: J. 
Author-X-Name-Last: Frank 
Author-Name: P. Garcia 
Author-X-Name-First: P. 
Author-X-Name-Last: Garcia 
Title: Time-varying risk premium: further evidence in agricultural futures markets 
Abstract:
  Research has provided mixed results regarding the presence of a
 time-varying risk premium in agricultural futures markets. In this article
 we test for the presence of a time-varying risk premium focusing on the
 properties of the underlying data. Our results show that accounting for
 the structural break in the 1970s plays a key role in the findings. In
 contrast to recent research, we find only limited evidence of time-varying
 risk premium. For a two-month horizon the corn, soybean meal and hog
 markets show no signs of a risk premium, while very weak support for a
 time-varying premium emerges in live cattle. For the four-month horizon,
 no evidence of a time-varying risk premium appears for any of the markets. 
Journal: Applied Economics 
Pages: 715-725 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:715-725




Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Bennett 
Author-X-Name-First: Jessica 
Author-X-Name-Last: Bennett 
Author-Name: Seamus McGuinness 
Author-X-Name-First: Seamus 
Author-X-Name-Last: McGuinness 
Title: Assessing the impact of skill shortages on the productivity performance of high-tech firms in Northern Ireland 
Abstract:
  This article utilizes data from three separate skill related surveys of
 firms in the Northern Ireland IT, Electronic Engineering and Mechanical
 Engineering industries in order to assess the extent to which the
 performance of high-tech firms are being constrained as a result of
 hard-to-fill and/or unfilled vacancies. Whist it was found that the
 determinants of skill shortage varied somewhat depending upon the
 definitional approach adopted, a high degree of correlation was found.
 With regards to the impacts of skill shortages on firm level performance,
 it was found that both hard-to-fill and unfilled vacancies had reduced
 output per worker levels by between 65 and 75% in affected firms, however,
 these impacts were only detecw after controlling for selection effects.
 The evidence suggests that standard OLS procedures can generate highly
 misleading results in studies of this nature. 
Journal: Applied Economics 
Pages: 727-737 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007450 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007450 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:727-737




Template-Type: ReDIF-Article 1.0
Author-Name: Nurhan Yenturk 
Author-X-Name-First: Nurhan 
Author-X-Name-Last: Yenturk 
Author-Name: Burc Ulengin 
Author-X-Name-First: Burc 
Author-X-Name-Last: Ulengin 
Author-Name: Ahmet Cimenoglu 
Author-X-Name-First: Ahmet 
Author-X-Name-Last: Cimenoglu 
Title: An analysis of the interaction among savings, investments and growth in Turkey 
Abstract:
  Turkey has been implementing tight fiscal and monetary policies for
 years. These policies rely on the basic understanding that savings trigger
 growth and investments. However there are alternative theoretical
 discussions and empirical findings related to the interaction among these
 variables. In this study, while one of the purposes is to analyse the
 interaction among these variables for the Turkish case, the other is to
 try to bring an insight for other developing countries for the issues such
 as data production, econometric analysis, and as well as making policy
 suggestions in line with the evidence from the Turkish case. The findings
 of this study show that, it is the growth that induces both savings and
 investments. Hence, it is necessary to question policies that assume it is
 the savings triggering growth and investments. 
Journal: Applied Economics 
Pages: 739-751 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019000 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019000 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:739-751




Template-Type: ReDIF-Article 1.0
Author-Name: M. Angeles Caraballo 
Author-X-Name-First: M. Angeles 
Author-X-Name-Last: Caraballo 
Author-Name: Carlos Usabiaga 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Usabiaga 
Title: The relevance of supply shocks for inflation: the spanish case 
Abstract:
  The methodology applied in this article to the Spanish economy is based
 on Ball and Mankiw (1995). These authors assume that a good proxy for
 supply shocks is the third moment of the price changes distribution. The
 main data used are the monthly consumer price indexes of each region,
 disaggregated in 57 categories, for the 1993-2005 period. We estimate the
 relation between mean inflation and the higher moments of the
 distribution, including several control variables. Our results point out
 that Spanish regions show a common pattern with regard to nominal
 rigidities, and that Spanish inflation is vulnerable to supply shocks. 
Journal: Applied Economics 
Pages: 753-764 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007443 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007443 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:753-764




Template-Type: ReDIF-Article 1.0
Author-Name: Erik de Regt 
Author-X-Name-First: Erik 
Author-X-Name-Last: de Regt 
Title: Hourly wages and working time in the Dutch market sector 1962-1995 
Abstract:
  This article analyses the joint behaviour of hourly wages and standard
 hours in the Netherlands. With respect to the development of full-time
 hours to different hypotheses are suggested: work-sharing or
 productivity-sharing. Under the work-sharing hypothesis, high unemployment
 would lead to reduced hours, whereas under productivity-sharing, increased
 productivity leads to higher wages or reduced hours. The evidence is in
 favour of the productivity hypothesis. There is no direct impact of
 unemployment on the evolution of hours. Moreover, although reduced hours
 tend to increase hourly wages in the short run, this is not the case in
 the long run. 
Journal: Applied Economics 
Pages: 765-778 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019018 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:765-778




Template-Type: ReDIF-Article 1.0
Author-Name: Hector Sala 
Author-X-Name-First: Hector 
Author-X-Name-Last: Sala 
Title: Institutions, capital stock and wage setting in Spain 
Abstract:
  This article confronts two distinct perspectives of the labour market:
 the institutionalist view - highlighting equilibrium and labour market
 institutions - and the Chain Reaction Theory - emphasizing dynamics and
 the growth drivers' role in labour market performance. We consider the
 ratio of public to private capital stock as a growth driver relevant to
 the labour market; provide different economic rationales for this ratio to
 exert a negative influence in wage setting; and explore its empirical
 relevance in the context of a wage setting curve for Spain comprising the
 standard variables. There are two main results. First, several
 institutional variables taken to be critical to explain unemployment in
 the mainstream literature are not relevant for the Spanish wage setting
 curve. Second, there is a negative and significant influence of the ratio
 of public to private capital stock, which is robust to different
 specifications of the wage setting equation. 
Journal: Applied Economics 
Pages: 779-789 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007435 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007435 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:779-789




Template-Type: ReDIF-Article 1.0
Author-Name: Maury Granger 
Author-X-Name-First: Maury 
Author-X-Name-Last: Granger 
Author-Name: Gregory Price 
Author-X-Name-First: Gregory 
Author-X-Name-Last: Price 
Title: Does religion constrain the risky sex behaviour associated with HIV/AIDS? 
Abstract:
  This article examines the likely effectiveness of public health
 interventions designed to change the risky sexual behaviour associated
 with Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome
 (HIV/AIDS) by Faith-Based Organizations (FBOs). We utilize data from the
 General Social Survey (GSS) to estimate an economic model of sexual
 behaviour. Our theoretical approach proceeds by rationalizing, on
 evolutionary grounds, the existence of sexual activity in individual
 preference functions, with unobservable costs imposed by religious beliefs
 and participation. Given the objective of utility maximization, we justify
 the existence of demand functions for sexual activity that generate
 empirically testable hypotheses about the effects of religion and
 religious participation on risky sexual activity. Our results suggest
 that, at least in the case of heterosexuals, FBOs can indeed influence the
 risky sexual behaviour that is associated with the transmission of
 HIV/AIDS. 
Journal: Applied Economics 
Pages: 791-802 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/09603100601007495 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100601007495 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:791-802




Template-Type: ReDIF-Article 1.0
Author-Name: Nektarios Aslanidis 
Author-X-Name-First: Nektarios 
Author-X-Name-Last: Aslanidis 
Author-Name: Susana Iranzo 
Author-X-Name-First: Susana 
Author-X-Name-Last: Iranzo 
Title: Environment and development: is there a Kuznets curve for CO2 emissions? 
Abstract:
  This article re-examines the relationship between growth in per capita
 income and environmental degradation using econometric techniques
 appropriate for smooth transition regressions with panel data. This is a
 more intuitive and flexible methodology than the polynomial models widely
 used in the literature, and it can reconcile some of the mixed results
 found previously. The methodology is applied to carbon dioxide emissions
 from nonOECD countries over the period 1971 to 1997. Although there is no
 evidence of environmental Kuznets curve, we find two regimes, namely a
 low-income regime where emissions accelerate with economic growth and a
 middle to high-income regime associated with a deceleration in
 environmental degradation. 
Journal: Applied Economics 
Pages: 803-810 
Issue: 6 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601018994 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601018994 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:803-810




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of fiscal policy: introduction and overview 
Abstract:
  We introduce and summarize the results of 10 empirical studies that make
 up this special issue on fiscal policy, covering a wide range of developed
 and developing countries. 
Journal: Applied Economics 
Pages: 811-813 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840902840393 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902840393 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:811-813




Template-Type: ReDIF-Article 1.0
Author-Name: James Foreman-Peck 
Author-X-Name-First: James 
Author-X-Name-Last: Foreman-Peck 
Author-Name: Laurian Lungu 
Author-X-Name-First: Laurian 
Author-X-Name-Last: Lungu 
Title: Fiscal devolution and dependency 
Abstract:
  Public spending devolution in practice is widely seen as more appropriate
 for addressing varied political aspirations within state boundaries than
 is tax devolution. A drawback is that devolved public spending may be
 subject to irresistible upward pressure, as illustrated by 'formula drift'
 of the United Kingdom devolved administrations. By crowding out the
 private sector such public spending can exacerbate the problem it was
 originally intended to alleviate. When taxpayers do not value increases in
 government output at least as highly as the private goods and services
 they must forgo to finance them, then the public sector is too large. This
 article estimates a three sector Hecksher-Ohlin model of the economy with
 the greatest relative rise of the public spending ratio in the United
 Kingdom, Wales. Simulation of the model shows a net gain in employment
 from a 1% cut in income tax matched by a corresponding reduction in
 government spending. This result is consistent with the current level of
 intergovernmental transfers being excessive. 
Journal: Applied Economics 
Pages: 815-828 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019182 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019182 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:815-828




Template-Type: ReDIF-Article 1.0
Author-Name: H. Badinger 
Author-X-Name-First: H. 
Author-X-Name-Last: Badinger 
Title: Fiscal rules, discretionary fiscal policy and macroeconomic stability: an empirical assessment for OECD countries 
Abstract:
  Does aggressive use of discretionary fiscal policy induce macroeconomic
 instability in terms of higher output and inflation volatility? Three main
 conclusions arise from our cross section and panel analysis for a sample
 of 20 OECD countries: first, discretionary fiscal policy has a significant
 and sizeable effect on volatility of GDP (per capita) and all of its
 components. Second, there is no direct effect on inflation volatility;
 since output volatility is an important determinant of inflation
 volatility, discretionary fiscal policy indirectly exacerbates inflation
 volatility. These results turn out robust with respect to alternative
 fiscal policy measures and endogeneity concerns. Finally, many of the
 fiscal rules introduced since 1990 appear to have reduced the use of
 discretionary fiscal policy. 
Journal: Applied Economics 
Pages: 829-847 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367556 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367556 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:829-847




Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso 
Author-X-Name-First: Oscar 
Author-X-Name-Last: Afonso 
Author-Name: Rui Henrique Alves 
Author-X-Name-First: Rui Henrique 
Author-X-Name-Last: Alves 
Title: Endogenous growth and European fiscal rules 
Abstract:
  We develop a general equilibrium endogenous growth model of a monetary
 union between two countries that differ in economic dimension and level of
 development. By solving transitional dynamics towards the steady state, we
 examine the impact of fiscal shocks that may lead to excessive deficits.
 Results suggest that the individual and the whole impact of such deficits
 depend on which country they occur. In such context, we argue that the
 small and less developed country should be allowed to temporarily run an
 excessive deficit, in order to improve economic convergence within the
 union. 
Journal: Applied Economics 
Pages: 849-858 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701604503 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604503 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:849-858




Template-Type: ReDIF-Article 1.0
Author-Name: Lusine Lusinyan 
Author-X-Name-First: Lusine 
Author-X-Name-Last: Lusinyan 
Author-Name: John Thornton 
Author-X-Name-First: John 
Author-X-Name-Last: Thornton 
Title: The sustainability of South African fiscal policy: an historical perspective 
Abstract:
  This article examines the issue of long-run fiscal sustainability in
 South Africa by applying a battery of recently developed unit root and
 cointegration tests to real revenue and spending data for the period 1895
 to 2005. The results provide evidence that, allowing for structural
 breaks, South African revenue and spending during this period were I(1)
 series and cointegrated, with the estimated long-run equilibrium relation
 supporting the presence of a weak deficit sustainability condition. 
Journal: Applied Economics 
Pages: 859-868 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701604537 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604537 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:859-868




Template-Type: ReDIF-Article 1.0
Author-Name: Agustin Garcia 
Author-X-Name-First: Agustin 
Author-X-Name-Last: Garcia 
Author-Name: M. J. Arroyo 
Author-X-Name-First: M. J. 
Author-X-Name-Last: Arroyo 
Author-Name: R. Minguez 
Author-X-Name-First: R. 
Author-X-Name-Last: Minguez 
Author-Name: J. Uxo 
Author-X-Name-First: J. 
Author-X-Name-Last: Uxo 
Title: Estimation of a fiscal policy rule for EMU countries (1984-2005) 
Abstract:
  The primary objective of this article is to estimate a fiscal policy rule
 for each of the EMU member States from 1984 to 2005 in order to know if
 there has been a systematic response of the cyclically adjusted primary
 balance to output gap and debt level variations. Also, we aim to discover
 whether the change in the fiscal framework, which took place after 1992
 has had a substantial impact on the fiscal policy applied. The principal
 novelty is that the estimation is performed simultaneously by means of a
 seemingly unrelated regression estimator model. We are thus able to obtain
 different coefficients for each country, while developing possible
 correlations between national fiscal policies, which would reveal the
 existence of common factors. The results provide clear evidence of a
 structural break in the rule after the introduction of the new fiscal
 regulations and, as the hypothesis of equality in the national
 coefficients of the rule is clearly rejected, reveal a need to consider
 specific national factors. 
Journal: Applied Economics 
Pages: 869-884 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701720739 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720739 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:869-884




Template-Type: ReDIF-Article 1.0
Author-Name: Helder Ferreira de Mendonca 
Author-X-Name-First: Helder Ferreira 
Author-X-Name-Last: de Mendonca 
Author-Name: Rubens Teixeira da Silva 
Author-X-Name-First: Rubens Teixeira 
Author-X-Name-Last: da Silva 
Title: Fiscal effect from inflation targeting: the Brazilian experience 
Abstract:
  This article evaluates the presence of possible unpleasant effects on the
 fiscal side due to a disinflation process initiated with the adoption of
 inflation targeting in Brazil. The analysis for this country deserves
 attention because, credibility is still being built and Brazil represents
 a potential laboratory experiment in which the effects of an adoption of
 inflation targeting, after more than half a decade, can be studied. Under
 this perspective, an empirical analysis based on OLS, GMM and VAR methods
 is made. The findings denote that the development of credibility is a
 powerful instrument for eliminating the unpleasant effects from a tight
 monetary policy (necessity of increasing primary surplus) on public debt. 
Journal: Applied Economics 
Pages: 885-897 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701721398 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721398 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:885-897




Template-Type: ReDIF-Article 1.0
Author-Name: C. Colombier 
Author-X-Name-First: C. 
Author-X-Name-Last: Colombier 
Title: Growth effects of fiscal policies: an application of robust modified M-estimator 
Abstract:
  In the field of economics only nonhigh-quality data is usually available,
 which can cause the widely used least square estimators (LSE) to be biased
 and inefficient. Therefore, the present study introduces the robust
 modified M-estimator (MME) proposed by Yohai et al. (1991). In the case of
 growth regressions with fiscal variables it can be shown that LSE is
 biased and inefficient, whereas MME is not. The robust regressions
 ascertain a stable positive growth effect of public infrastructure and
 education. Moreover, this study shows that government size has not been
 detrimental to growth for OECD countries in the past. No growth effects of
 taxation have been found so that endogenous growth theory is not
 corroborated in this regard. Consequently, fiscal policies aiming at
 promoting growth should focus on infrastructure and education. 
Journal: Applied Economics 
Pages: 899-912 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701736099 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736099 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:899-912




Template-Type: ReDIF-Article 1.0
Author-Name: James Ang 
Author-X-Name-First: James 
Author-X-Name-Last: Ang 
Title: Do public investment and FDI crowd in or crowd out private domestic investment in Malaysia? 
Abstract:
  Motivated by the concern of a persistent decline in total investment in
 Malaysia during the post-crisis era, this article examines the long-run
 relationship between private domestic investment (PDI), public investment
 and foreign direct investment (FDI) in Malaysia. Using multivariate
 cointegration techniques, the results indicate a fairly robust
 cointegrated relationship between these variables during the period 1960
 to 2003. Both public investment and FDI are found to be complementary to,
 rather than competing with, PDI. 
Journal: Applied Economics 
Pages: 913-919 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701721448 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721448 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:913-919




Template-Type: ReDIF-Article 1.0
Author-Name: Noriko Ishikawa 
Author-X-Name-First: Noriko 
Author-X-Name-Last: Ishikawa 
Author-Name: Mototsugu Fukushige 
Author-X-Name-First: Mototsugu 
Author-X-Name-Last: Fukushige 
Title: Impacts of tourism and fiscal expenditure on remote islands in Japan: a panel data analysis 
Abstract:
  Japan consists of many small inhabited islands in addition to four main
 islands. We examine the impact of fiscal expenditure and the number of
 tourists on per capita taxable income in remote islands using panel data
 analyses. The results show that both fiscal expenditure and population
 size have significant positive impacts on per capita taxable income,
 whereas the number of tourists does not have statistically significant
 impact. They indicate that tourism development would not work as a
 substitute for financial support from the government. In other words,
 continuous financial support may be needed to maintain the islands'
 economies. 
Journal: Applied Economics 
Pages: 921-928 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840801964484 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964484 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:921-928




Template-Type: ReDIF-Article 1.0
Author-Name: Marta Gomez-Puig 
Author-X-Name-First: Marta 
Author-X-Name-Last: Gomez-Puig 
Title: The immediate effect of monetary union on EU-15 sovereign debt yield spreads 
Abstract:
  Yield spreads (corrected for exchange rate risk) over 10-year German
 securities of European Union (EU) countries that did not join Economic and
 Monetary Union (EMU) experienced an average decrease of 14.20 basis points
 during the first 3 years after the beginning of Currency Union.
 Conversely, Euro-area countries' adjusted spreads registered an average
 rise of 11.98 basis points in the same period. This article examines the
 elements (a possible change in the relative importance of domestic or
 international risk factors) behind these results using both panel
 estimations in the two groups of countries and a country-by-country
 specification in each of them. 
Journal: Applied Economics 
Pages: 929-939 
Issue: 7 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802345584 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802345584 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:929-939




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chun Chang 
Author-X-Name-First: Shu-Chun 
Author-X-Name-Last: Chang 
Title: Productivity and territorial specialization 
Abstract:
  On the basis of a relatively free trade world and global economy,
 specialization tends to increase the comparative advantages of a country.
 But in this scenario, not countries but cities are the territorial
 organizations that play the main role. Cities concentrate the economic
 activity and political influential household that reflects economic
 changes.The purpose of this study is to explore the principles underlie
 the distribution of population on a territory and the likely effect of
 economic development on redistributing population geographically. 
Journal: Applied Economics 
Pages: 941-945 
Issue: 8 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019091 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019091 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:941-945




Template-Type: ReDIF-Article 1.0
Author-Name: Syoum Negassi 
Author-X-Name-First: Syoum 
Author-X-Name-Last: Negassi 
Title: International R&D spillovers and economic performance of firms: an empirical study using random coefficient models 
Abstract:
  The existence of R&D spillovers or externalities i.e. the effects of
 firms' research activities on other firms activities was theoretically
 established by Arrow 1962, but few empirical studies have addressed their
 effects on firms' economic performance (i.e. value-added) and
 technological performance (innovation output). In an open economy, firms'
 economic and technological performances depend on the position of these
 firms in their national and international technological environments. The
 main focus of this article is identifying the different channels through,
 which spillover occurs, specially the international technology spillovers
 (i.e. R&D activities of foreign firms; foreign technology payments;
 international intermediate inputs; and international R&D cooperation) and
 the mobility of engineers and scientists between firms. Our statistical
 and econometric analysis determines that spillovers drive the production
 of individual firms together and link it to the incidence of innovations.
 Thus, using a pooling method based on segmentation of bunched (or grouped)
 individuals rather than those of usual individuals panel models and
 proposing an efficient new full information method (3SLS),1 this empirical
 study shows that international spillovers are rather large compared to
 national spillovers. They account for a substantial fraction of the
 variation in firm production and innovation output in the French economy.
 The mobility of engineers and scientists help a firm to acquire knowledge
 externally so as to innovate and increase its production. The effects of
 technological policy tools used by the French government on the innovation
 and production are rather very high and incite firms to increase their R&D
 efforts. This study also demonstrates the existence of a potential
 simultaneity in the decision to impliment R&D and the spillover pools. The
 estimated coefficients obtained for the classical variables (capital and
 employment) are comparable to those obtained in the literature. 
Journal: Applied Economics 
Pages: 947-976 
Issue: 8 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019034 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:947-976




Template-Type: ReDIF-Article 1.0
Author-Name: Voxi Heinrich Amavilah 
Author-X-Name-First: Voxi Heinrich 
Author-X-Name-Last: Amavilah 
Title: Knowledge of African countries: production and value of doctoral dissertations 
Abstract:
  The notion that lack of knowledge undermines the economic performance of
 African countries is deeply and widely held to be true. Yet quantitative
 evidence for the basis of that truth is few and far in-between. This
 article first describes a conventional production function approach to the
 creation of knowledge of African countries in terms of a relative and
 indirect measure of the quantity of dissertations (D). Second, it assesses
 the imputed values of knowledge. In the first instance it finds that
 relative income (Y), population (N), openness (Z), and technical factors
 (A) are central to the production of knowledge of African countries. In
 the second instance, the imputed values of knowledge are positive, but of
 modest magnitude. The results recommend more investment in the production
 of knowledge of African countries, improved openness, and especially
 reduced opportunity cost of knowledge creation which now differs widely
 across countries, and averages 10.7%. For further research the results
 suggest that dissertations may be useful proxies for human capital in
 economic growth regressions. 
Journal: Applied Economics 
Pages: 977-989 
Issue: 8 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019117 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019117 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:977-989




Template-Type: ReDIF-Article 1.0
Author-Name: Miao Wang 
Author-X-Name-First: Miao 
Author-X-Name-Last: Wang 
Title: Manufacturing FDI and economic growth: evidence from Asian economies 
Abstract:
  Previous empirical studies on inward foreign direct investment (FDI) and
 economic growth generate mixed results. This article suggests that the
 ambiguous results might be caused by the use of total FDI. We study the
 heterogeneous effects of different sector-level FDI inflows on host
 country's economic growth. Data from 12 Asian economies over the period of
 1987 to 1997 are employed. Strong evidence shows that FDI in manufacturing
 sector has a significant and positive effect on economic growth in the
 host economies. FDI inflows in nonmanufacturing sectors do not play a
 significant role in enhancing economic growth. Furthermore, without the
 decomposition of total FDI inflows, the effect of manufacturing FDI on
 host country's economic growth is understated by at least 48%. 
Journal: Applied Economics 
Pages: 991-1002 
Issue: 8 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019059 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019059 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:991-1002




Template-Type: ReDIF-Article 1.0
Author-Name: Akhter Faroque 
Author-X-Name-First: Akhter 
Author-X-Name-Last: Faroque 
Author-Name: Ryan Minor 
Author-X-Name-First: Ryan 
Author-X-Name-Last: Minor 
Title: Inflation regimes and the stability of the pass-through of wages to consumer prices in Canada 
Abstract:
  This article has formally identified distinct historical inflation
 regimes in Canada since 1961 in order to facilitate an investigation of
 the impact of regime changes on the wage-price dynamics in the economy.
 Both in and out-of-sample evidence suggest that wage growth exerts an
 influence on inflation only during a high-inflation regime but inflation
 exerts a more systematic and quantitatively stronger influence on wage
 growth regardless of the prevailing inflation regime. Overall, the results
 do not support either the 'cost-push' view of inflation or the 'new view'
 that claims that increased globalization during the 1990s has reduced the
 feedback from wage growth to inflation by weakening the bargaining power
 of workers. 
Journal: Applied Economics 
Pages: 1003-1017 
Issue: 8 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019133 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019133 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:1003-1017




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Jones 
Author-X-Name-First: Richard 
Author-X-Name-Last: Jones 
Author-Name: Peter Sloane 
Author-X-Name-First: Peter 
Author-X-Name-Last: Sloane 
Title: Regional differences in job satisfaction 
Abstract:
  Job satisfaction is significantly higher in Wales than in London and the
 South East, the rest of England and Scotland. This is despite the fact
 that among these four regions, earnings are lowest in Wales. Using data
 from the British Household Panel Survey (BHPS), we investigate the
 determinants of job satisfaction and attempt to explain why workers in
 Wales are happier in their work than workers in other parts of the UK. We
 find that workers in Wales appear to be less concerned about pay than
 workers in other regions. We suggest that because lower earnings tend to
 be associated with higher levels of unemployment and inactivity, being in
 work may be regarded more favourably in more economically depressed
 regions. We also suggest the climate of industrial relations, as perceived
 by workers, is better in Wales than elsewhere. 
Journal: Applied Economics 
Pages: 1019-1041 
Issue: 8 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019067 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019067 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:1019-1041




Template-Type: ReDIF-Article 1.0
Author-Name: Yonghyup Oh 
Author-X-Name-First: Yonghyup 
Author-X-Name-Last: Oh 
Title: International capital market imperfections: evidence from geographical features of international consumption risk sharing 
Abstract:
  This article attempts to rationalize the validity of gravity variables to
 explain the degree of international consumption risk sharing. We find that
 for a panel of 54 countries during 1950-2000, variables such as distance,
 affluence, a common language and the type of legal system are relevant in
 explaining not only cross-country consumption and output correlations, but
 consumption risk sharing. Common law countries share consumption risks
 more than civil law countries. English speaking countries turn out to
 share consumption risks more than other language groups, and show
 significantly higher consumption risk sharing even within the group of
 common law countries. 
Journal: Applied Economics 
Pages: 1043-1053 
Issue: 8 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:1043-1053




Template-Type: ReDIF-Article 1.0
Author-Name: Dar-Hsin Chen 
Author-X-Name-First: Dar-Hsin 
Author-X-Name-Last: Chen 
Author-Name: Chun-Da Chen 
Author-X-Name-First: Chun-Da 
Author-X-Name-Last: Chen 
Author-Name: Jianguo Chen 
Author-X-Name-First: Jianguo 
Author-X-Name-Last: Chen 
Title: Downside risk measures and equity returns in the NYSE 
Abstract:
  Although investors are concerned foremost with mean and variance, they
 are also sensitive to downside risk. In this article we employ several
 risk variables of traditional and downside risk measures to evaluate the
 equity returns in the New York Stock Exchange (NYSE) market in order to
 test their explaining power. The test results show that variance (or SD)
 is better than beta in the performance. However, those traditional risk
 measures have almost less explanatory power than total downside risk
 measures, whether the downside risk measures are relative to zero, the
 mean return or the market index return when they are used to predict the
 future risk premium. The results also show that the significance of the
 downside risk measures in the NYSE market is different between different
 industry sectors, different periods of time and in different individual
 equities. 
Journal: Applied Economics 
Pages: 1055-1070 
Issue: 8 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019075 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:1055-1070




Template-Type: ReDIF-Article 1.0
Author-Name: J. T. Addison 
Author-X-Name-First: J. T. 
Author-X-Name-Last: Addison 
Author-Name: C. J. Surfield 
Author-X-Name-First: C. J. 
Author-X-Name-Last: Surfield 
Title: Does atypical work help the jobless? Evidence from a CAEAS/CPS cohort analysis 
Abstract:
  Atypical employment, such as temporary, on-call and contract work, has
 been found disproportionately to attract the jobless. But there is no
 consensus in the literature as to the labour market consequences of such
 job choice by unemployed individuals. Using data from the Current
 Population Survey, we investigate the implications of the initial
 job-finding strategies pursued by the jobless for their short- and
 medium-term employment stability. At first sight, it appears that taking
 an offer of regular employment provides the greatest degree of employment
 continuity for the jobless. However, closer inspection indicates that the
 jobless who take up atypical employment are not only more likely to be
 employed 1 month and 1 year later than those who continue to search, but
 also to enjoy employment continuity that is not less favourable than that
 offered by regular, open-ended employment. 
Journal: Applied Economics 
Pages: 1077-1087 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019232 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019232 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1077-1087




Template-Type: ReDIF-Article 1.0
Author-Name: L. la Cour 
Author-X-Name-First: L. 
Author-X-Name-Last: la Cour 
Author-Name: A. Milh&#xf8;j 
Author-X-Name-First: A. 
Author-X-Name-Last: Milh&#xf8;j 
Title: The sale of alcohol in Denmark - recent developments and dependencies on prices/taxes 
Abstract:
  How do prices affect the choice of types of alcohol in Denmark? We study
 the Danish sale of alcoholic beverages in a time series framework. First,
 we look at annual data from 1980 investigating the hypothesis of a fairly
 stable level of sales. We conclude stationarity of sales and we also find
 that the income elasticity of total sales has been zero. Second, we
 analyse the composition of the alcohol sale between beer, wine and spirits
 in a multivariate model conditional on the development in prices. For this
 analysis we use Johansen cointegration techniques. Again we test that
 income can be omitted from the model and we use the model to derive the
 effects on the composition of alcohol sales of three different sets of
 changes in the alcohol taxation. 
Journal: Applied Economics 
Pages: 1089-1103 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019174 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019174 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1089-1103




Template-Type: ReDIF-Article 1.0
Author-Name: Yucan Liu 
Author-X-Name-First: Yucan 
Author-X-Name-Last: Liu 
Author-Name: C. Richard Shumway 
Author-X-Name-First: C. Richard 
Author-X-Name-Last: Shumway 
Title: Testing expected utility maximization under price and quantity risk with a heterogeneous panel 
Abstract:
  Refutable implications based on the curvature properties of the indirect
 utility function for the competitive firm operating under uncertainty are
 extended to the case of both price and quantity uncertainty. Using unit
 roots and cointegration tests for heterogeneous panels, a model of US
 agricultural production is developed based on the time-series properties
 of a panel of state-level data. Most refutable hypotheses under output
 price and output quantity risk are not rejected, but symmetry conditions
 implied by a twice-continuously-differentiable indirect utility function
 are rejected. The same test conclusions are obtained from a traditional
 model that presumes stationarity in all variables. 
Journal: Applied Economics 
Pages: 1105-1119 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019166 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019166 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1105-1119




Template-Type: ReDIF-Article 1.0
Author-Name: A. Hatemi-J 
Author-X-Name-First: A. 
Author-X-Name-Last: Hatemi-J 
Author-Name: R. S. Hacker 
Author-X-Name-First: R. 
Author-X-Name-Last: S. Hacker 
Title: Can the LR test be helpful in choosing the optimal lag order in the VAR model when information criteria suggest different lag orders? 
Abstract:
  The objective of this simulation study is to investigate whether the
 likelihood ratio (LR) test can pick the optimal lag order in the vector
 autoregressive model when the most applied information criteria (i.e.
 vector Schwarz-Bayesian, SBC and vector Hannan-Quinn, HQC) suggest two
 different lag orders. This lag-choosing procedure has been suggested by
 Hatemi-J (1999). The results based on the Monte Carlo simulations show
 that combining the LR test with SBC and HQC causes a substantial increase
 in the success rate of choosing the optimal lag order compared to cases
 when only SBC or HQC are used. This appears to be the case irrespective of
 homoscedasticity or conditional heteroscedasticity properties of the
 error-term in small sample sizes. This improvement in choosing the right
 lag order also tends to improve the forecasting capability of the
 underlying model. 
Journal: Applied Economics 
Pages: 1121-1125 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019273 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019273 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1121-1125




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Roberts 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Roberts 
Author-Name: Steve Thompson 
Author-X-Name-First: Steve 
Author-X-Name-Last: Thompson 
Title: Firm turnover, restructuring and labour productivity in transition: the case of Poland 
Abstract:
  This article explores the impact of turnover and restructuring on labour
 productivity in the Polish economy over the period 1988 to 1993. Changes
 in aggregate productivity are decomposed into elements corresponding to
 productivity growth among survivors, market share growth by survivors and
 the contributions of entering and exiting firms. The traditional entry and
 exit effects begin to work as transition to a market economy progresses.
 However, initial productivity improvements are due to changes in market
 shares of the existing firms following the break-up of large enterprises.
 Regression analysis shows that changes in the firm-level productivity are
 affected by restructuring and a more competitive economic environment. 
Journal: Applied Economics 
Pages: 1127-1136 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019208 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019208 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1127-1136




Template-Type: ReDIF-Article 1.0
Author-Name: Ajit Karnik 
Author-X-Name-First: Ajit 
Author-X-Name-Last: Karnik 
Author-Name: Cedwyn Fernandes 
Author-X-Name-First: Cedwyn 
Author-X-Name-Last: Fernandes 
Title: Natural resource dependence: a macroeconometric model for the United Arab Emirates 
Abstract:
  This study constructs a macroeconometric model to analyse the problems of
 regions that exhibit dependence on nonrenewable resources (e.g. oil). The
 role of the oil sector in the UAE and the extent to which it subsidizes
 the rest of the economy is evaluated. The macroeconometric model
 constructed consists of four sectors, has 25 equations and is evaluated
 and calibrated employing dynamic simulation techniques. Counter-factual
 and policy experiments are carried out and the instruments-targets
 approach is used to analyse the impact of the oil sector. The article
 highlights the continued dependence of the UAE economy on oil and the
 urgency to diversify the economy and securing more nonhydrocarbon sources
 of revenue. 
Journal: Applied Economics 
Pages: 1157-1174 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019109 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019109 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1157-1174




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin O'Brien 
Author-X-Name-First: Kevin 
Author-X-Name-Last: O'Brien 
Title: Union wage, nonwage and political effects on protective service budgets 
Abstract:
  Previous studies have shown that public employee unions can affect the
 budgets for their municipal services. I determine the specific sources of
 these increased budgets for municipal services: increased wages, nonwage
 bargaining issues, or political activity. Using data from national,
 cross-sectional samples for police and fire departments, I show that
 increased union wages do not affect the size of police and fire budgets
 size whereas nonwage bargaining outcomes and union political activity do
 affect police and fire budgets. Thus, nonwage contract issues should be
 recognized as another important vehicle for public employee unions to
 affect the budgets for their services. 
Journal: Applied Economics 
Pages: 1175-1182 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019257 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019257 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1175-1182




Template-Type: ReDIF-Article 1.0
Author-Name: Don Webber 
Author-X-Name-First: Don 
Author-X-Name-Last: Webber 
Author-Name: Andrew Mearman 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Mearman 
Title: Student participation in sporting activities 
Abstract:
  Given that many universities spend large sum of money supplying sports
 facilities for student use, comparatively little is known about the
 factors that influence the quantity of student sporting participation.
 This article presents evidence which suggests that the quantity of student
 sports participation is negatively related to the number of hours they
 work, while augmenting social capital and sports literacy are found to
 enhance their sports participation. Universities need to target their
 investment in sporting facilities to meet students' demands and not simply
 to increase the range of sports facilities available to students. 
Journal: Applied Economics 
Pages: 1183-1190 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019216 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019216 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1183-1190




Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Lin Lin 
Author-X-Name-First: Hui-Lin 
Author-X-Name-Last: Lin 
Author-Name: Ryh-song Yeh 
Author-X-Name-First: Ryh-song 
Author-X-Name-Last: Yeh 
Author-Name: Ching-Fan Chung 
Author-X-Name-First: Ching-Fan 
Author-X-Name-Last: Chung 
Title: The effect of outward investment to China on domestic R&D: a two-hurdle model with endogenous ODI 
Abstract:
  Outward direct investment (ODI) and domestic R&D are interrelated, but
 empirical evidence is affected by the nature of a firm's data, which are
 heavily censored. Firm data contain a firm's yes/no decision to invest in
 China, yes/no decision of R&D, and the decision of R&D intensity. We thus
 adopt a two-hurdle model and allow the China investment decision to be
 endogenous in an R&D model in order to examine the effect of ODI in China
 on domestic R&D investment in Taiwan's electronics industry. In the model,
 a two-equation simultaneous subsystem is formed, in which three regression
 equations are specified: a decision of R&D intensity, and a yes/no
 decision of location to conduct R&D together with a yes/no decision to
 invest in China Our results indicate that China investment and R&D
 intensity are positively related such that ODI in China helps to raise
 significantly a firm's R&D intensity as compared to the estimate if the
 endogeneity of China investment and the nature of data were not properly
 accounted. 
Journal: Applied Economics 
Pages: 1191-1198 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019224 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019224 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1191-1198




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Mien Lin 
Author-X-Name-First: Yi-Mien 
Author-X-Name-Last: Lin 
Author-Name: Yun-Sheng Hsu 
Author-X-Name-First: Yun-Sheng 
Author-X-Name-Last: Hsu 
Author-Name: Shieh-Liang Chen 
Author-X-Name-First: Shieh-Liang 
Author-X-Name-Last: Chen 
Title: Cash-flow news, market liquidity and liquidity risk 
Abstract:
  This article adopts Campbell's (1991) return decomposition model to
 decompose the unexpected stock return and unexpected excess stock return
 in the US stock market. The study also investigates the factors that cause
 the shock to stock return and excess stock return. We further examine the
 responses of stock market to cash-flow news, expected stock return news,
 expected excess stock return news and interest rate news. Last, we examine
 the reaction of market liquidity, liquidity risk and abnormal trading
 volume to cash-flow news, expected stock return news, expected excess
 stock return news and interest rate news. Our main findings are summarized
 as follows: first, cash-flow news is the main driver of stock return and
 excess stock return in stock market. Second, the dividend payout ratio is
 able to predict stock return and excess stock return. Third, under the
 model of stock return variance, unexpected market liquidity and unexpected
 liquidity risk are negatively related to expected stock return news, but
 not related to cash-flow news. Fourth, under the model of excess stock
 return variance, unexpected market liquidity and unexpected liquidity risk
 are negatively related to cash-flow news, expected excess stock return
 news, and interest rate news. 
Journal: Applied Economics 
Pages: 1137-1156 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019158 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019158 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1137-1156




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel 
Author-X-Name-First: Rajeev 
Author-X-Name-Last: Goel 
Title: Cigarette prices and illicit drug use: is there a connection? 
Abstract:
  Using cross-sectional data from the United States, this study examines
 the effects of cigarette prices on the use of marijuana and illicit drugs
 (including marijuana, cocaine, heroin, inhalants, hallucinogens or any
 prescription drugs for nonmedical use). Five primary contributions of this
 work are: First, it provides evidence on the cross-relation between
 cigarettes and marijuana and illicit drugs. Second, besides the 'standard'
 control variables used in demand studies (namely, price, education and
 income), we also control for the influence of employment status and health
 insurance coverage. Third, this research provides new evidence on the
 price elasticity of cigarette demand for a recent time period. Fourth, the
 data used in this study are the latest available. Five, based on our
 results, implications for drug use policy are provided. Several key points
 may be noted from our results: (i) Cigarette demand seems to have become
 elastic in recent years. This is in contrast to findings in earlier years;
 (ii) Consumers seem to view cigarettes and marijuana as substitutes and
 cigarettes and illicit drugs as substitutes. (iii) Greater consumer income
 increases illegal drug use, but does not seem to have a significant impact
 on smoking and marijuana use; (iv) The unemployment rate and health
 insurance converge do not seem to significantly affect smoking or drug
 use; and (v) Policymakers should pay attention to the cross effects among
 drugs in framing drug use policies. 
Journal: Applied Economics 
Pages: 1071-1076 
Issue: 9 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019141 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1071-1076




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of money and inflation: introduction and overview 
Abstract:
  We provide an introduction and overview to the 13 applied studies making
 up this special theme on money and inflation. The studies cover a wide
 range of national and regional experience in the relationship between
 inflation and money and employ a variety of applied techniques. 
Journal: Applied Economics 
Pages: 1199-1201 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840902920641 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902920641 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1199-1201




Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Maliszewski 
Author-X-Name-First: Wojciech 
Author-X-Name-Last: Maliszewski 
Title: Modelling inflation in Georgia 
Abstract:
  The article explains the behaviour of inflation in Georgia in the
 post-stabilization period. Long-run equation linking prices with money and
 exchange rate, as well as short-run, dynamic equation for inflation are
 estimated. The inflation equation is stable, points to a dominant role of
 exchange rate in the inflation behaviour. The equation explains well the
 behaviour of inflation after the Russian crises, when inflation increased
 sharply but was quickly brought under control when the National Bank of
 Georgia kept its monetary policy tight and exchange rate stable. 
Journal: Applied Economics 
Pages: 1203-1213 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007187 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007187 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1203-1213




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Cerisola 
Author-X-Name-First: Martin 
Author-X-Name-Last: Cerisola 
Author-Name: Gaston Gelos 
Author-X-Name-First: Gaston 
Author-X-Name-Last: Gelos 
Title: What drives inflation expectations in Brazil? An empirical analysis 
Abstract:
  This study examines the macro-economic determinants of survey inflation
 expectations in Brazil since the adoption of inflation targeting in 1999.
 The results suggest that the inflation-targeting framework has helped
 anchor expectations, with the dispersion of inflation expectations
 declining considerably, particularly during periods of high uncertainty.
 We also find that apart from the inflation target, the stance of fiscal
 policy, as proxied by the ratio of the consolidated primary surplus to
 GDP, has been instrumental in shaping expectations. The importance of past
 inflation in determining expectations appears to be relatively low, and
 the overall empirical evidence does not suggest the presence of
 substantial inertia in the inflation process. 
Journal: Applied Economics 
Pages: 1215-1227 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601166892 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601166892 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1215-1227




Template-Type: ReDIF-Article 1.0
Author-Name: R. Shih 
Author-X-Name-First: R. 
Author-X-Name-Last: Shih 
Author-Name: D. E. Giles 
Author-X-Name-First: D. E. 
Author-X-Name-Last: Giles 
Title: Modelling the duration of interest rate spells under inflation targeting in Canada 
Abstract:
  We use survival models to analyse the duration of the spells associated
 with the interest rate used by the Bank of Canada as its monetary policy
 instrument. Both nonparametric and parametric models are estimated,
 allowing for right-censoring of the data, and time-varying covariates. We
 find that the data are explained well by an accelerated failure time
 Weibull model, with the annual rate of inflation and the quarterly rate of
 growth in Gross domestic product (GDP) as covariates. The model indicates
 that there is positive duration dependence in the interest rate spells,
 and that unemployment and exchange rate effects are insignificant. 
Journal: Applied Economics 
Pages: 1229-1239 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701721232 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721232 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1229-1239




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani 
Author-X-Name-First: Hamid 
Author-X-Name-Last: Baghestani 
Author-Name: Tracy Mott 
Author-X-Name-First: Tracy 
Author-X-Name-Last: Mott 
Title: On the behaviour of UK money, velocity, prices, and output in the gold standard period: 1871-1913 
Abstract:
  This article provides evidence in support of cointegration among the UK
 money supply, real output and the price level in the gold standard period,
 1871-1913. The series respond to eliminate short run deviations from the
 long run equilibrium relation of the equation of exchange. Cointegration
 is also observed between the UK and US price levels, with the former also
 responding to eliminate short run deviations from the long run equilibrium
 relation among the two price levels. Our results for the components of the
 quantity equation support arguments that the Bank of England moved
 short-term interest rates in response to changes in domestic economic
 activity, taken to be an indicator of future changes in its gold reserve
 position. Our evidence concerning the UK-US price levels supports the
 rising position of the United States as an economic power during this
 period. 
Journal: Applied Economics 
Pages: 1241-1249 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840600994229 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994229 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1241-1249




Template-Type: ReDIF-Article 1.0
Author-Name: Kyongwook Choi 
Author-X-Name-First: Kyongwook 
Author-X-Name-Last: Choi 
Author-Name: Chulho Jung 
Author-X-Name-First: Chulho 
Author-X-Name-Last: Jung 
Title: Structural changes and the US money demand function 
Abstract:
  Previous literature on the stability of the US money demand function
 suggests mixed results. In this article, we study the stability of the
 money demand function from the standpoint of structural changes in the
 function. We first investigate if a stable money demand function can be
 found for the US for the period from the first quarter of 1959 to the
 fourth quarter of 2000. The results show that a stable long-run money
 demand function does not exist for the sample period under consideration.
 We then estimate unknown structural break points in the variables of the
 money demand function using Bai and Perron's (1998) method and test if
 there is a stable relationship in each sub-sample period of the break
 points. The results show that a stable relationship exists for each
 sub-sample period. The estimated income elasticity and interest rate
 semi-elasticity are relatively smaller than Ball's (2001) estimates, but
 consistent with his argument. 
Journal: Applied Economics 
Pages: 1251-1257 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007385 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007385 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1251-1257




Template-Type: ReDIF-Article 1.0
Author-Name: Jarko Fidrmuc 
Author-X-Name-First: Jarko 
Author-X-Name-Last: Fidrmuc 
Title: Money demand and disinflation in selected CEECs during the accession to the EU 
Abstract:
  A panel data set for six countries (Czech Republic, Hungary, Poland,
 Romania, Slovakia and Slovenia) is used to estimate money demand with
 panel cointegration methods over the recent disinflation period. The basic
 money demand model is able to convincingly explain the long-run dynamics
 of M2 in the selected countries. However, money demand is found to have
 been significantly determined by the euro area interest rates and the
 exchange rate against the euro, which indicates possible instability of
 money demand functions in the Central and Eastern European countries.
 Therefore, direct inflation targeting is an appropriate monetary regime
 before the eventual adoption of the euro. 
Journal: Applied Economics 
Pages: 1259-1267 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019323 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019323 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1259-1267




Template-Type: ReDIF-Article 1.0
Author-Name: M. Sumner 
Author-X-Name-First: M. 
Author-X-Name-Last: Sumner 
Title: Demand for money in Thailand 
Abstract:
  After a brief review of recent literature, new estimates on a long run of
 annual observations of the Thai demand for all the standard measures of
 money are presented. The results demonstrate that the demand for real
 money balances is a stable function of a scale variable and a coherent
 measure of opportunity cost, with all the properties predicted by economic
 theory. 
Journal: Applied Economics 
Pages: 1269-1276 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019398 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019398 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1269-1276




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Author-Name: Saten Kumar 
Author-X-Name-First: Saten 
Author-X-Name-Last: Kumar 
Title: Cointegration, structural breaks and the demand for money in Bangladesh 
Abstract:
  This article allows for endogenous structural breaks in the cointegration
 equation and investigates if there is a stable demand for money for
 Bangladesh. We have used the Gregory and Hansen framework and found that
 there was an intercept shift and a well-determined and stable demand for
 money in Bangladesh exists. 
Journal: Applied Economics 
Pages: 1277-1283 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367671 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367671 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1277-1283




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Narayan 
Author-X-Name-First: Paresh 
Author-X-Name-Last: Narayan 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: The effect of inflation and real wages on productivity: new evidence from a panel of G7 countries 
Abstract:
  This article examines the effect of inflation and real wages on
 productivity within a panel unit root and panel cointegration framework
 for the G7 countries over the period 1960 to 2004. The main contribution
 of the article is to provide panel long-run estimates of the effect of
 inflation and real wages on productivity in the G7 countries over this
 period. The article finds that for the panel as a whole a 1% increase in
 real wages generates a 0.6% increase in productivity, while the effects of
 inflation on productivity are statistically insignificant for most of the
 individual countries and for the panel as a whole. 
Journal: Applied Economics 
Pages: 1285-1291 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701537810 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537810 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1285-1291




Template-Type: ReDIF-Article 1.0
Author-Name: R. Fendel 
Author-X-Name-First: R. 
Author-X-Name-Last: Fendel 
Author-Name: M. Frenkel 
Author-X-Name-First: M. 
Author-X-Name-Last: Frenkel 
Title: Inflation differentials in the Euro area: did the ECB care? 
Abstract:
  Compared to inflation differentials among regions in the United States,
 European Monetary Union (EMU) inflation differentials are larger and more
 persistent. Based on augmented monetary policy reactions functions, this
 article addresses the question whether the presence of pronounced
 inflation differentials in combination with low average inflation rates
 has influenced monetary policy decisions of the ECB. The article finds
 statistical evidence that the ECB took inflation differentials into
 account which may reflect the fear of deflation in low inflation countries
 like Germany. 
Journal: Applied Economics 
Pages: 1293-1302 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701522838 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1293-1302




Template-Type: ReDIF-Article 1.0
Author-Name: Par Osterholm 
Author-X-Name-First: Par 
Author-X-Name-Last: Osterholm 
Title: The time-series properties of Norwegian inflation and nominal interest rate 
Abstract:
  This article investigates the time-series properties of Norwegian
 inflation and nominal interest rate using annual data from 1850 to 2004. A
 number of different univariate unit-root tests are employed to examine
 whether the time series are mean reverting or generated by unit-root
 processes. Results show very strong evidence in favour of mean reversion
 in inflation but a unit root in the nominal interest rate. This implies
 that there exists no long-run relationship between these two variables, a
 conclusion which is further supported by cointegration tests and estimated
 vector error correction models. The cointegration analysis also points to
 an important potential pitfall when using cointegration techniques on
 systems where some variables are stationary processes. 
Journal: Applied Economics 
Pages: 1303-1309 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701537828 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537828 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1303-1309




Template-Type: ReDIF-Article 1.0
Author-Name: Arto Luoma 
Author-X-Name-First: Arto 
Author-X-Name-Last: Luoma 
Author-Name: Jani Luoto 
Author-X-Name-First: Jani 
Author-X-Name-Last: Luoto 
Title: Modelling the general public's inflation expectations using the Michigan survey data 
Abstract:
  In this article we discuss a few models developed to explain the general
 public's inflation expectations formation and provide some relevant
 estimation results. Furthermore, we suggest a simple Bayesian learning
 model which could explain the expectations formation process on the
 individual level. When the model is aggregated to the population level it
 could explain not only the mean values, but also the variance of the
 public's inflation expectations. The estimation results of the mean and
 variance equations seem to be consistent with the results of the
 questionnaire studies in which the respondents were asked to report their
 thoughts and opinions about inflation. 
Journal: Applied Economics 
Pages: 1311-1320 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701604339 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604339 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1311-1320




Template-Type: ReDIF-Article 1.0
Author-Name: Andres Gonzalez 
Author-X-Name-First: Andres 
Author-X-Name-Last: Gonzalez 
Author-Name: Luis Melo 
Author-X-Name-First: Luis 
Author-X-Name-Last: Melo 
Author-Name: Carlos Posada 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Posada 
Title: Inflation and money in Colombia: another P-Star model 
Abstract:
  This document presents the estimation of a recent version of the P-Star
 model by Gerlach and Svensson (2003) and its predictions for Colombia
 (January 1980 to April 2005). The model is designed to explain the
 inflation gap (observed rate minus the target) based on the monetary gap
 and the output gap. According to the results, the output gap lacks
 significant effects while the monetary gap has significant positive
 effects on inflation. 
Journal: Applied Economics 
Pages: 1321-1329 
Issue: 10 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701704493 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704493 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1321-1329




Template-Type: ReDIF-Article 1.0
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Author-Name: Ingrid Nielsen 
Author-X-Name-First: Ingrid 
Author-X-Name-Last: Nielsen 
Author-Name: Vinod Mishra 
Author-X-Name-First: Vinod 
Author-X-Name-Last: Mishra 
Title: 'I've been to Bali too' (and I will be going back): are terrorist shocks to Bali's tourist arrivals permanent or transitory? 
Abstract:
  International visitor arrivals to Bali are examined using univariate and
 panel Lagrange multiplier (LM) unit root tests with one and two structural
 breaks to ascertain if shocks to the time path of tourist arrivals are
 permanent or transitory. The univariate LM unit root tests with one and
 two structural breaks fail to reject the null hypothesis of a unit root in
 international visitor arrivals to Bali. However, the panel LM unit root
 tests with one and two structural breaks applied to a panel of Bali's 11
 major source markets reject the null and support the alternative
 hypothesis of a joint trend-stationary series with transitory shocks. This
 result suggests that, the effects of the recent terrorist acts on Bali on
 the growth path of tourist arrivals from major markets are only transitory
 and that as a consequence Bali's tourism sector is sustainable in the long
 run. 
Journal: Applied Economics 
Pages: 1367-1378 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019356 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019356 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1367-1378




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Aysan 
Author-X-Name-First: Ahmet 
Author-X-Name-Last: Aysan 
Author-Name: Gaobo Pang 
Author-X-Name-First: Gaobo 
Author-X-Name-Last: Pang 
Author-Name: Marie-Ange Veganzones-Varoudakis 
Author-X-Name-First: Marie-Ange 
Author-X-Name-Last: Veganzones-Varoudakis 
Title: Uncertainty, economic reforms and private investment in the Middle East and North Africa 
Abstract:
  During the 1980s and the 1990s, private investment in the Middle East and
 North Africa (MENA) has on average shown a decreasing or stagnant trend.
 This contrasts with the situation of the Asian economies, where private
 investment has always been more dynamic. In this article, it is
 empirically shown for a panel of 39 developing economies among which four
 MENA countries - that in addition to the traditional determinants of
 investment such as the growth anticipations and the real interest rate -
 government policies explain MENA's low investment rate. Insufficient
 structural reforms, which have most of the time led to poor financial
 development and deficient trade openness have been a crucial factor for
 the deficit in private capital formation. The economic uncertainties of
 the region have represented another factor of the firm's decisions not to
 invest. These uncertainties consisted of the external debt burden and
 various measures of volatility. 
Journal: Applied Economics 
Pages: 1379-1395 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019315 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019315 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1379-1395




Template-Type: ReDIF-Article 1.0
Author-Name: M&#xe5;rten Bjellerup 
Author-X-Name-First: M&#xe5;rten 
Author-X-Name-Last: Bjellerup 
Author-Name: Thomas Holgersson 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Holgersson 
Title: A simple multivariate test for asymmetry 
Abstract:
  Since many macroeconomic models are linear, it is not desirable to use
 them with an asymmetric dependent variable. In this article, we formulate
 a univariate test for symmetry, based on the third central moment and
 extend it to a multivariate test; the test does not require modelling and
 it is robust against serial correlation, Autoregressive Conditional
 Heteroscedasticity (ARCH) and nonnormality. In the empirical application
 of the test it is found that orthodox theory seem to be supported;
 consumption expenditure on durable goods is found to be symmetric while
 consumption expenditure on nondurable goods is asymmetric for the USA and
 the UK, with peaks being higher than troughs are deep. Also, the empirical
 importance of the choice between the univariate and the multivariate test
 for possibly correlated series is underscored; the results from the two
 approaches clearly differ. Given the widespread practice of using
 consumption expenditure on nondurable goods as the dependent variable in
 linear models for the USA and the UK, our results might be noteworthy. 
Journal: Applied Economics 
Pages: 1405-1416 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840500428146 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1405-1416




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Rouwendal 
Author-X-Name-First: Jan 
Author-X-Name-Last: Rouwendal 
Author-Name: Jaap Boter 
Author-X-Name-First: Jaap 
Author-X-Name-Last: Boter 
Title: Assessing the value of museums with a combined discrete choice/count data model 
Abstract:
  This article assesses the value of Dutch museums using information about
 destination choice as well as about the number of trips undertaken by an
 actor. Destination choice is analysed by means of a mixed logit model, and
 a count data model is used to explain trip generation. We use a
 utility-consistent framework in which the discrete choice model for
 destination choice is linked to an indirect utility function. The results
 are used to compute the compensating variation of particular museums and
 of the total group of museums in the sample. 
Journal: Applied Economics 
Pages: 1417-1436 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019240 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019240 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1417-1436




Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Castello Stefani 
Author-X-Name-First: Patricia Castello 
Author-X-Name-Last: Stefani 
Author-Name: Ciro Biderman 
Author-X-Name-First: Ciro 
Author-X-Name-Last: Biderman 
Title: The evolution of the returns to education and wage differentials in Brazil: a quantile approach 
Abstract:
  This paper uses quantile regression techniques to analyze the returns to
 education across the conditional distribution of wages from individuals
 separated both by gender and skin color, while accounting for the
 endogeneity of the education decisions. Using data from the Brazilian
 households survey (PNAD) for the years of 1988 and 1996, the results
 indicate that the returns to education are significantly heterogeneous
 across the distribution of earnings, as well as the wage gap between the
 groups, according to gender and skin color. Moreover, there has been a
 significant improvement in the wage differentials between the groups
 across the years. 
Journal: Applied Economics 
Pages: 1453-1460 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019299 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019299 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1453-1460




Template-Type: ReDIF-Article 1.0
Author-Name: Beyza Ural 
Author-X-Name-First: Beyza 
Author-X-Name-Last: Ural 
Author-Name: William Horrace 
Author-X-Name-First: William 
Author-X-Name-Last: Horrace 
Author-Name: Jin Hwa Jung 
Author-X-Name-First: Jin Hwa 
Author-X-Name-Last: Jung 
Title: Inter-industry gender wage gaps by knowledge intensity: discrimination and technology in Korea 
Abstract:
  A new gender wage gap decomposition methodology is introduced, which does
 not suffer from identification problems caused by unobserved
 nondiscriminatory wage structure. The methodology is used to measure the
 relative size of Korean gender wage gaps, from 1994 to 2000 across
 industries, differentiated by industrial knowledge intensity, where
 knowledge intensity is the extent to which industries produce or employ
 high-technology products. Korea represents an important case study, since
 it possesses one of the fastest growing knowledge-intensive economies
 among industrialized countries. Empirical results indicate that over this
 period, discrimination (the unexplained portion of the gender wage gaps)
 in Korea was statistically smaller in knowledge-intensive industries than
 in industries with low knowledge intensity. Also, discrimination was
 declining on average over the period. This suggests that continued growth
 in knowledge-intensive industries in Korea may lead to further declines in
 the overall gender gap. 
Journal: Applied Economics 
Pages: 1437-1452 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019281 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019281 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1437-1452




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cook 
Author-Name: Dimitrios Vougas 
Author-X-Name-First: Dimitrios 
Author-X-Name-Last: Vougas 
Title: Unit root testing against an ST-MTAR alternative: finite-sample properties and an application to the UK housing market 
Abstract:
  A class of smooth transition momentum-threshold autoregressive (ST-MTAR)
 tests is proposed to allow testing of the unit root hypothesis against an
 alternative of asymmetric adjustment about a smooth nonlinear trend.
 Monte-Carlo simulation is employed to derive finite-sample critical values
 for the proposed test and illustrate its attractive power properties
 against a range of stationary alternatives. The empirical relevance of the
 ST-MTAR test is highlighted via an application to aggregate house price
 data for the UK. Interestingly, house prices are found to exhibit
 structural change characterized a fitted logistic smooth transition
 process, with the newly proposed ST-MTAR test providing the most
 significant results of the alternative smooth transition unit root tests
 available. 
Journal: Applied Economics 
Pages: 1397-1404 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019331 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019331 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1397-1404




Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale 
Author-X-Name-First: Tony 
Author-X-Name-Last: Caporale 
Author-Name: Kyongwook Choi 
Author-X-Name-First: Kyongwook 
Author-X-Name-Last: Choi 
Title: The start of interest rate smoothing in the US: is it a monetary or fiscal story? 
Abstract:
  This article revisits the key issue raised by researchers who have
 empirically investigated the behaviour of short term US interest rates
 during the period 1890-1933. The seminal article of Mankiw, Miron and Weil
 (1987) argues that changes in the behaviour of nominal interest rates is
 best explained as a monetary regime shift that occurred with the founding
 of the Federal reserve in 1914. This explanation is rejected by Newbold,
 Lehybourne, Sollis and Wohar (2001) who show that fiscal and regulatory
 changes (driven by the needs of World War1 financing) best explain the
 changing behaviour of interest rates that they identify as beginning in
 mid-1917. We find, using three different statistical procedures that a
 structural break in the second moment of interest rates occurred in early
 1915. This supports the monetary regime shift argument of MMW by
 illustrating that the interest rate smoothing policies of the FED can be
 observed as a variance break in short term interest rates. 
Journal: Applied Economics 
Pages: 1361-1365 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019380 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019380 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1361-1365




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Fischer 
Author-X-Name-First: Christian 
Author-X-Name-Last: Fischer 
Author-Name: Luis Gil-Alana 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gil-Alana 
Title: The nature of the relationship between international tourism and international trade: the case of German imports of Spanish wine 
Abstract:
  This article deals with the relationship between international trade and
 tourism. We focus on the effect that German tourism to Spain has on German
 imports of Spanish wine. Due to the different stochastic properties of the
 series under analysis, which display different orders of integration, a
 methodology is used based on long memory regression models, where tourism
 is supposed to be exogenous. The period covered is January 1998 to
 November 2004. The results show that tourism has an effect on wine imports
 that lasts between 2 and 9 months. Disaggregating the imports across the
 different types of wine, it is observed that only for red wines from
 Navarra, Penedus and Valdepenas, and to a certain extent for sparkling
 wine, tourism produces an effect on future import demand. From a
 policy-making perspective our results imply that the impact of tourism on
 the host economy is not only direct and short-term but also oblique and
 delayed, thus reinforcing the case for tourism as a means for economic
 development. 
Journal: Applied Economics 
Pages: 1345-1359 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019349 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019349 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1345-1359




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Edwards 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Edwards 
Author-Name: Benhua Yang 
Author-X-Name-First: Benhua 
Author-X-Name-Last: Yang 
Title: An empirical refinement of the relationship between growth and volatility 
Abstract:
  The link between business cycle volatility and the long-run growth rate
 has received increasing attention in the literature over the last ten
 years. Yet neither is there a theoretical consensus nor consistent
 empirical evidence that would lead us to believe the relationship is
 positive, negative or nonexistent either within broadly defined regions or
 over time. This study investigates a possible cause for this phenomenon.
 What we find is that out of 14 popularly defined sub regions, only 7 can
 be constrained over time within the respective sub region, while only two
 broadly-defined regional classifications are justified. We did find that
 the grouping of OECD countries is statistically valid, but only if the
 relationship is allowed to vary over time. We suggest a refinement of the
 current empirical work that takes into account both more narrowly defined
 regional and time parametric heterogeneity. 
Journal: Applied Economics 
Pages: 1331-1343 
Issue: 11 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019307 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019307 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1331-1343




Template-Type: ReDIF-Article 1.0
Author-Name: Mika Kuismanen 
Author-X-Name-First: Mika 
Author-X-Name-Last: Kuismanen 
Title: Piece-wise or differentiable budget constraint? Estimating labour supply function for Finnish females 
Abstract:
  Various estimation approaches have been used in recent literature to
 study the effect of nonlinear income taxation on labour supply. Different
 techniques and data sets have produced a wide range of income and
 substitution elasticities. In this study, we utilize register data
 provided by the tax authorities. This gives us good possibilities to
 construct detailed budget constraints for each individual in our sample.
 We estimate labour supply function using the piece-wise linear budget
 constraint approach and the differentiable budget constraint approach
 suggested by MaCurdy et al. (1990). Our results support the view that if
 one is able to mimic the actual budget set closely and if the degree of
 progression is high then these two methods are likely to produce similar
 results. Some sensitivity analysis is also carried out using alternative
 assumptions concerning the budget sets. 
Journal: Applied Economics 
Pages: 1461-1472 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032144 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1461-1472




Template-Type: ReDIF-Article 1.0
Author-Name: Mercedes Gumbau-Albert 
Author-X-Name-First: Mercedes 
Author-X-Name-Last: Gumbau-Albert 
Author-Name: Joaquin Maudos 
Author-X-Name-First: Joaquin 
Author-X-Name-Last: Maudos 
Title: Patents, technological inputs and spillovers among regions 
Abstract:
  This article analyses the importance of different technological inputs
 (R&D and human capital) and different spillovers in explaining the
 differences in patenting among Spanish regions in the period 1986 to 2003.
 The analysis is based on the estimation of a knowledge production
 function. A region's own R&D activities and human capital are observed to
 have a positive significant effect on innovation output, measured by the
 number of patents. R&D spillovers weighted by the distance and the volume
 of trade flows between regions cause positive effects on a region's
 patents. However, distance matters more than the intensity of trade flows
 and the R&D spillover effects between regions are bounded: spillovers from
 closer regions perform better than spillovers from distant regions. On the
 opposite side, human capital spillovers do not cause any effect outside
 the region itself. 
Journal: Applied Economics 
Pages: 1473-1486 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032250 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032250 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1473-1486




Template-Type: ReDIF-Article 1.0
Author-Name: Elisenda Paluzie 
Author-X-Name-First: Elisenda 
Author-X-Name-Last: Paluzie 
Author-Name: Jordi Pons 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Pons 
Author-Name: Daniel Tirado 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Tirado 
Title: A test of the market potential equation in Spain 
Abstract:
  In this article, we examine the relationship between regional wages in
 Spain and the market potential of these regions in the period 1955 to
 1995. We demonstrate the existence of a spatial wage structure, in which
 wages fall with increasing distance from the highest income regions. This
 result strengthens the hypothesis that agglomerative forces were operating
 in Spain during the second half of the twentieth century. 
Journal: Applied Economics 
Pages: 1487-1493 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032169 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032169 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1487-1493




Template-Type: ReDIF-Article 1.0
Author-Name: David Feldman 
Author-X-Name-First: David 
Author-X-Name-Last: Feldman 
Author-Name: Robert Archibald 
Author-X-Name-First: Robert 
Author-X-Name-Last: Archibald 
Title: Revealed preferences for car tax cuts: an empirical study of perceived fiscal incidence 
Abstract:
  Voting in an election in which elimination of the local car tax is the
 central issue shows how a highly visible universal tax cut can prevail in
 the electoral process even if benefits are skewed toward upper income
 households. These results are consistent with positive models of fiscal
 structure choice in which fiscal systems are the consequence of support
 maximizing politicians attempting to supply net benefits to easily
 identifiable interest groups without generating significant opposition
 from other groups. 
Journal: Applied Economics 
Pages: 1495-1500 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032201 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032201 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1495-1500




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Zietz 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Zietz 
Author-Name: Xiaolin Zhao 
Author-X-Name-First: Xiaolin 
Author-X-Name-Last: Zhao 
Title: The response of household incomes to stock price and GDP growth by income quantile 
Abstract:
  How household incomes respond to GDP and stock price growth is important
 for an understanding of the economic costs of business cycles and the
 driving forces of income inequality over time. This article examines to
 what extent household incomes react differently across income distribution
 quantiles and time. It employs U.S. Panel Study of Income Dynamics data
 for the period 1979-2000 and quantile regression techniques. Significant
 differences are found in how household incomes respond across income
 quantiles. For the same income quantiles, large differences are identified
 when the time period 1979-1987 is compared to 1988-2000. 
Journal: Applied Economics 
Pages: 1501-1512 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032151 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032151 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1501-1512




Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Munda 
Author-X-Name-First: Giuseppe 
Author-X-Name-Last: Munda 
Author-Name: Michela Nardo 
Author-X-Name-First: Michela 
Author-X-Name-Last: Nardo 
Title: Noncompensatory/nonlinear composite indicators for ranking countries: a defensible setting 
Abstract:
  Composite indicators (or indexes) are very common in economic and
 business statistics for benchmarking the mutual and relative progress of
 countries in a variety of policy domains such as industrial
 competitiveness, sustainable development, globalization and innovation.
 The proliferation of the production of composite indicators by all the
 major international organizations is a clear symptom of their political
 importance and operational relevance in policy-making. As a consequence,
 improvements in the way these indicators are constructed and used seem to
 be a very important research issue from both the theoretical and
 operational points of view. This article aims at contributing to the
 improvement of the overall quality of composite indicators (or indexes) by
 looking at one of their technical weaknesses, that is, the aggregation
 convention used for their construction. For this aim, we build upon
 concepts coming from multi-criteria decision analysis, measurement theory
 and social choice. We start from the analysis of the axiomatic system
 underlying the mathematical modelling commonly used to construct composite
 indicators. Then a different methodological framework, based on
 noncompensatory/nonlinear aggregation rules, is developed. Main features
 of the proposed approach are: (i) the axiomatic system is made completely
 explicit and (ii) the sources of technical uncertainty and imprecise
 assessment are reduced to the minimum possible degree. 
Journal: Applied Economics 
Pages: 1513-1523 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019364 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019364 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1513-1523




Template-Type: ReDIF-Article 1.0
Author-Name: Krishna Iyer 
Author-X-Name-First: Krishna 
Author-X-Name-Last: Iyer 
Author-Name: Alicia Rambaldi 
Author-X-Name-First: Alicia 
Author-X-Name-Last: Rambaldi 
Author-Name: Kam Ki Tang 
Author-X-Name-First: Kam Ki 
Author-X-Name-Last: Tang 
Title: How trade and foreign investment affect the growth of a small but not so open economy: Australia? 
Abstract:
  This article analyses the impact of trade and foreign investment on a
 small but not so open economy, Australia, whose growth rate outpaced the
 majority of the OECD countries in the last decade. We model five channels
 of outward orientation: exports, imports, foreign direct investment,
 foreign portfolio investment and other foreign investment. A cointegrated
 vector autoregressive model, complemented by a robust Granger noncausality
 test, is specified to identify permanent channels of outward orientation.
 Imports and direct investment are found to have a growth effect in the
 long run. The effect of imports is almost three times that of direct
 investment. 
Journal: Applied Economics 
Pages: 1525-1532 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032177 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032177 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1525-1532




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Beatty 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Beatty 
Title: Semiparametric quantile Engel curves and expenditure elasticities: a penalized quantile regression spline approach 
Abstract:
  This article estimates nonparametric Engel curves and expenditure
 elasticities by quantile for an exhaustive set of household expenditure
 categories using a novel estimation approach. Engel curves and expenditure
 elasticities are vital inputs to evaluating the effects of public
 policies. This article examines whether Engel curves and expenditure
 elasticities evaluated for an average individual are importantly different
 from the Engel curves and expenditure elasticities at the upper and lower
 quantiles. 
Journal: Applied Economics 
Pages: 1533-1542 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032185 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032185 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1533-1542




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Basile 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Basile 
Author-Name: Sergio de Nardis 
Author-X-Name-First: Sergio de 
Author-X-Name-Last: Nardis 
Author-Name: Alessandro Girardi 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Girardi 
Title: Pricing to market of Italian exporting firms 
Abstract:
  This article investigates the pricing-to-market (PTM) behaviour of
 Italian exporting firms, using quarterly survey data by sector and by
 region over the period 1999q1 to 2005q2. A partial equilibrium imperfect
 competition model provides the structure according to which the
 orthogonality of structural shocks is derived. Impulse response analysis
 shows non-negligible reactions of export-domestic price margins to
 unanticipated changes in cost competitiveness and in foreign and domestic
 demand levels, even though these effects appear to be of a transitory
 nature. For the period 1999 to 2001, a typical PTM behaviour emerges,
 while, during the most recent years favourable foreign demand conditions
 allowed firms to increase their export-domestic price margins in face of a
 strong deterioration of their cost competitiveness. Macroeconomic
 implications of the observed PTM behaviour are also discussed. 
Journal: Applied Economics 
Pages: 1543-1562 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032219 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032219 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1543-1562




Template-Type: ReDIF-Article 1.0
Author-Name: V. J. Cano Fernandez 
Author-X-Name-First: V. J. 
Author-X-Name-Last: Cano Fernandez 
Author-Name: G. Guirao Perez 
Author-X-Name-First: G. 
Author-X-Name-Last: Guirao Perez 
Author-Name: M. C. Rodriguez Donate 
Author-X-Name-First: M. C. 
Author-X-Name-Last: Rodriguez Donate 
Author-Name: M. E. Romero Rodriguez 
Author-X-Name-First: M. E. 
Author-X-Name-Last: Romero Rodriguez 
Title: An analysis of count data models for the study of exclusivity in wine consumption 
Abstract:
  Several models which analyse count data have been proposed in econometric
 literature. These models allow the discrete, nonnegative nature of
 specific phenomena of interest to be gathered in a appropriate way and can
 be useful for the explanation of specific preference structures among
 individuals. In this work, an analysis of the number of wine types
 consumed by residents of Tenerife is carried out, with an aim to observe
 which characteristics determine the exclusivity in its consumption, given
 the current context of increased competition in this sector. The specific
 characteristics of the considered variable allow the study to cover two
 aspects. The first is methodological, and is seen by the variety of models
 that may be considered in this case. This focus consists in comparing
 several possibilities, which fit the type of count data involved. The
 second aspect is clearly empirical, and is based on the description of not
 only the most appropriate decision-making mechanism for the study but in
 the identification of those factors that explain the diversity in wine
 consumption. 
Journal: Applied Economics 
Pages: 1563-1574 
Issue: 12 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032227 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032227 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1563-1574




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of economic growth: introduction and overview 
Abstract:
  We introduce and summarize the results of 12 empirical studies that make
 up this special theme on economic growth, covering a wide range of
 countries and issues. 
Journal: Applied Economics 
Pages: 1575-1577 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840903016613 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903016613 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1575-1577




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Everhart 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Everhart 
Author-Name: Jorge Martinez- Vazquez 
Author-X-Name-First: Jorge Martinez- 
Author-X-Name-Last: Vazquez 
Author-Name: Robert McNab 
Author-X-Name-First: Robert 
Author-X-Name-Last: McNab 
Title: Corruption, governance, investment and growth in emerging markets 
Abstract:
  The article investigates the potential impact of corruption on economic
 growth by examining the effect that corruption may have on several
 significant determinants of economic growth, namely, investment in human,
 private and public capital, and on governance. Our theoretical approach
 allows for corruption to influence economic growth directly and indirectly
 through different investment and governance channels. All previous
 empirical work on this issue has been based on national income and product
 accounts (NIPA) data, which do not normally break down gross domestic
 investment into its private and public sector, and if they do, they
 misclassify investment by public enterprises as private investment,
 potentially biasing empirical findings. In this article we use a data set
 from the International Finance Corporation that bypasses these problems.
 We find that the impact of corruption on the level of public investment
 appears to be more ambiguous than it has been found in the previous
 literature. We, however, find that the impact of corruption on the
 accumulation of private capital is significantly more damaging than what
 has been previously found. We also find that the impact of corruption on
 governance is unambiguously negative, which further deters economic
 growth. 
Journal: Applied Economics 
Pages: 1579-1594 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701439363 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701439363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1579-1594




Template-Type: ReDIF-Article 1.0
Author-Name: James Ang 
Author-X-Name-First: James 
Author-X-Name-Last: Ang 
Title: Financial development and the FDI-growth nexus: the Malaysian experience 
Abstract:
  This article examines the FDI-growth nexus in the small open economy of
 Malaysia by controlling for the level of financial development. Financial
 development is proxied by a composite index, which is a summary measure of
 four financial development indicators. Using time-series data from 1965 to
 2004, the results show that FDI and financial development are positively
 related to output in the long-run. The impact of FDI on output is enhanced
 through financial development. To supplement these findings, we assess the
 causal relationships between the variables using the recent causality
 tests available in the literature. The results indicate that economic
 growth causes FDI growth in the long-run, but no feedback relationship is
 observed. 
Journal: Applied Economics 
Pages: 1595-1601 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222553 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222553 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1595-1601




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Liu 
Author-X-Name-First: Xiaohui 
Author-X-Name-Last: Liu 
Author-Name: Chang Shu 
Author-X-Name-First: Chang 
Author-X-Name-Last: Shu 
Author-Name: Peter Sinclair 
Author-X-Name-First: Peter 
Author-X-Name-Last: Sinclair 
Title: Trade, foreign direct investment and economic growth in Asian economies 
Abstract:
  Despite the increasing role of foreign direct investment (FDI) in
 economic development, very limited research has been carried out on the
 causal links between trade, FDI and economic growth in Asian economies.
 This study examines empirically the inter-play between exports, imports,
 FDI and economic growth for nine Asian economies by conducting
 multivariate causality tests in the vector error correction model (VECM)
 framework. The results reveal two-way causal connections between trade,
 inward FDI, inward merger and acquisitions (M&As) and growth for most of
 the sample economies. There is a unidirectional causal link running from
 outward M&As to growth and trade. These findings suggest that export
 expansion, import liberalization, FDI inflows and inward M&As are integral
 elements of the growth process in Asian economies. 
Journal: Applied Economics 
Pages: 1603-1612 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701579176 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579176 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1603-1612




Template-Type: ReDIF-Article 1.0
Author-Name: Yasuyuki Sawada 
Author-X-Name-First: Yasuyuki 
Author-X-Name-Last: Sawada 
Title: The immiserizing growth: an empirical evaluation 
Abstract:
  This article examines the empirical validity of immiserizing growth by
 using the revealed preference framework, together with macroeconomic
 growth data. We identify 26 episodes of immiserizing growth in the
 post-war world economy, mostly in Africa and Latin America. We also test
 statistically the restriction imposed by the standard macroeconomic
 framework that rule out the existence of immiserizing growth. The overall
 probability of immiserizing growth is found to be minimal in a cross
 section of countries. 
Journal: Applied Economics 
Pages: 1613-1620 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802052099 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802052099 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1613-1620




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Batten 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Batten 
Author-Name: Xuan Vinh Vo 
Author-X-Name-First: Xuan Vinh 
Author-X-Name-Last: Vo 
Title: An analysis of the relationship between foreign direct investment and economic growth 
Abstract:
  Employing a panel data modelling technique, we contribute to two critical
 research issues: what is the link between Foreign Direct Investment (FDI)
 and economic growth and does the relationship change under different
 educational, institutional and economic conditions? Overall, the analysis
 supports the view that FDI has a stronger positive impact on economic
 growth in countries with a higher level of education attainment, openness
 to international trade and stock market development, and a lower rate of
 population growth and lower level of risk. Thus, countries undertaking
 reform of cross-border capital restrictions and controls and initiating
 other policy aimed at encouraging FDI need to ensure that broader social
 policy objectives-such as education and institutional reform-are also
 undertaken to leverage the benefits from FDI. 
Journal: Applied Economics 
Pages: 1621-1641 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701493758 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493758 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1621-1641




Template-Type: ReDIF-Article 1.0
Author-Name: Claude Lopez 
Author-X-Name-First: Claude 
Author-X-Name-Last: Lopez 
Author-Name: Javier Reyes 
Author-X-Name-First: Javier 
Author-X-Name-Last: Reyes 
Title: Stationary properties of the real interest rate and the per-capita consumption growth rate: empirical evidence for theoretical arguments 
Abstract:
  Many economic theories connecting the real interest rate and the
 per-capita consumption growth rate require that both rates evolve together
 over time. This article investigates whether these rates present similar
 stationary behaviour for the seven most industrialized countries over the
 1957-2005 period. The analysis relies on the unit root tests developed by
 Elliott et al. (1996) and Lopez (2006) to look for stationary or
 regime-wise stationary behaviour, respectively. Furthermore, the final
 break selection uses Bai and Perron's (2003) method. The results show, for
 all the countries considered, that both rates are either stationary or
 regime-wise stationary with the same number of breaks and, mostly, with
 corresponding dates. The results hold whether the rates are calculated
 annually or quarterly. 
Journal: Applied Economics 
Pages: 1643-1651 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802243805 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802243805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1643-1651




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Author-Name: Maheshwar Rao 
Author-X-Name-First: Maheshwar 
Author-X-Name-Last: Rao 
Title: Openness and growth in Fiji: some time series evidence 
Abstract:
  Compared to many cross-country studies on the determinants of growth
 rate, time series works are relatively few and limited in scope. However,
 time series studies are useful for country-specific policies. But in many
 recent works ad hoc specifications have been used to analyse the
 contribution of various factors to growth. This article uses an improved
 specification to estimate the effects of openness on growth in a small
 open economy namely Fiji. In addition to trade openness, we include, as
 additional variables, the basic conditioning variables namely factor
 inputs into our specification. The need for the inclusion of some basic
 conditioning variables has been emphasized by Boswoth and Collins (2003)
 in their cross country studies. Our results show that trade openness and
 output are cointegrated. Neglecting the conditioning variables seems to
 lead to some overestimation of the effects of openness and at times a
 cointegrating vector may not exist. 
Journal: Applied Economics 
Pages: 1653-1662 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601007252 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007252 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1653-1662




Template-Type: ReDIF-Article 1.0
Author-Name: Hailin Liao 
Author-X-Name-First: Hailin 
Author-X-Name-Last: Liao 
Author-Name: Xiaohui Liu 
Author-X-Name-First: Xiaohui 
Author-X-Name-Last: Liu 
Title: Export-total factor productivity growth nexus in East Asian economies 
Abstract:
  Despite increasing interest in the relationship between trade and
 macro-economic performance in development economics, very limited studies
 have been conducted on the causal links between exports and productivity
 growth in Asian economies. This article examines empirically the interplay
 between exports and productivity growth for eight East Asian economies in
 a multivariate framework by applying bound tests and modified Wald tests.
 The results indicate that causality is bidirectional in the case of Korea,
 Singapore and Taiwan, while unidirectional from productivity to exports
 for Mainland China, Hong Kong, Indonesia, Malaysia and the Philippines.
 These findings provide little support for the conventional export-led
 growth hypothesis. 
Journal: Applied Economics 
Pages: 1663-1675 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032193 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032193 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1663-1675




Template-Type: ReDIF-Article 1.0
Author-Name: Tarkan Cavusoglu 
Author-X-Name-First: Tarkan 
Author-X-Name-Last: Cavusoglu 
Title: Growth effects of currency mismatches: evidence from emerging economies 
Abstract:
  This article investigates empirically the effects of currency mismatches
 on economic growth and volatility of growth in emerging market economies.
 Using the Arellano-Bond dynamic panel data approach, the analyses provide
 evidence on the presence of adverse growth effects of currency mismatches.
 This illustrates the crucial role played by foreign currency denominated
 debts in the propagation mechanism of contractionary depreciations in
 emerging economies in the last decade. Further evidence from estimations
 implies that the adverse effects of mismatches on growth and growth
 volatility are more pronounced with higher exchange rate fluctuations. 
Journal: Applied Economics 
Pages: 1677-1690 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131714 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131714 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1677-1690




Template-Type: ReDIF-Article 1.0
Author-Name: Mansur Masih 
Author-X-Name-First: Mansur 
Author-X-Name-Last: Masih 
Author-Name: Ali Al-Elg 
Author-X-Name-First: Ali 
Author-X-Name-Last: Al-Elg 
Author-Name: Haider Madani 
Author-X-Name-First: Haider 
Author-X-Name-Last: Madani 
Title: Causality between financial development and economic growth: an application of vector error correction and variance decomposition methods to Saudi Arabia 
Abstract:
  This article makes an attempt to test the possible directions of
 causality between financial development and economic growth, which were
 labelled by Patrick (1966) as the supply-leading and demand-following
 hypothesis. Saudi Arabia is taken as a case study. The methods applied are
 the error correction and variance decompositions techniques including the
 most recently developed 'long-run structural modelling (LRSM)' (Pesaran
 and Shin, 2002), which by imposing exactly identifying and overidentifying
 restrictions on the cointegrating vector has taken care of a major
 limitation of the conventional cointegrating estimates in that they were
 atheoretical in nature. To the best of our knowledge, there has not been
 any study on this issue with the application of the techniques that
 incorporate 'LRSM'. The stability of the functions has also been tested by
 Cumulative Sum (CUSUM), Cumulative Sum of Squares (CUSUMSQ) and Chow Test
 (CHOW) tests. Our findings, based on the above mentioned rigorous
 techniques, tend to suggest that the direction of causation between
 financial development and economic growth is supply-leading (rather than
 demand-following), as expected at the early stage of development. These
 findings have clear policy implications in that a pro-active policy of
 growth and reform of the financial sector will help enhance economic
 growth in an open developing economy like Saudi Arabia. 
Journal: Applied Economics 
Pages: 1691-1699 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701320233 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701320233 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1691-1699




Template-Type: ReDIF-Article 1.0
Author-Name: Karima Saci 
Author-X-Name-First: Karima 
Author-X-Name-Last: Saci 
Author-Name: Gianluigi Giorgioni 
Author-X-Name-First: Gianluigi 
Author-X-Name-Last: Giorgioni 
Author-Name: Ken Holden 
Author-X-Name-First: Ken 
Author-X-Name-Last: Holden 
Title: Does financial development affect growth? 
Abstract:
  This article contributes to the literature on the relationship between
 financial development and economic growth in three ways: it utilizes
 recently developed techniques for generalized methods of moments (GMM)
 one-step estimation with dynamic panel models, it focuses exclusively on a
 sample of developing countries and it uses as proxies for financial
 development variables which capture both banking sector and stock market
 effects. The results provide evidence, based on a panel of annual data for
 30 developing countries, that while the stock market variables are
 positively and significantly related to growth, their presence results in
 the standard banking sector variables, credit to the private sector and
 liquid liabilities, having negative effects on growth. 
Journal: Applied Economics 
Pages: 1701-1707 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335538 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335538 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1701-1707




Template-Type: ReDIF-Article 1.0
Author-Name: Chew Ging Lee 
Author-X-Name-First: Chew Ging 
Author-X-Name-Last: Lee 
Title: Foreign direct investment, pollution and economic growth: evidence from Malaysia 
Abstract:
  The bounds test developed by Pesaran et al. (2001) is applied to examine
 the existence of a long-run relationship between foreign direct investment
 (FDI) inflows, pollution and output of Malaysia. Granger causality tests
 are also utilized to test for the presence of the short-run and long-run
 causal relationship between these variables. Both FDI inflows and
 pollution have short-run causal relationship on output. Output only has
 long-run causal relationship on FDI inflows. 
Journal: Applied Economics 
Pages: 1709-1716 
Issue: 13 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701564376 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564376 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1709-1716




Template-Type: ReDIF-Article 1.0
Author-Name: Garrick Blalock 
Author-X-Name-First: Garrick 
Author-X-Name-Last: Blalock 
Author-Name: Vrinda Kadiyali 
Author-X-Name-First: Vrinda 
Author-X-Name-Last: Kadiyali 
Author-Name: Daniel Simon 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Simon 
Title: Driving fatalities after 9/11: a hidden cost of terrorism 
Abstract:
  We show that the public's response to terrorist threats can have
 unintended consequences that rival the attacks themselves in severity.
 Driving fatalities increased significantly after the 11 September 2001
 terrorist attacks, events that prompted many travellers to substitute road
 transportation for safer air transportation. After controlling for time
 trends, weather, road conditions and other factors, we find that
 travellers' response to 9/11 resulted in 327 driving deaths per month in
 late 2001. Moreover, while the effect of 9/11 weakened over time, as many
 as 2300 driving deaths may be attributable to the attacks. 
Journal: Applied Economics 
Pages: 1717-1729 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601069757 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601069757 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1717-1729




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brent 
Title: A cost-benefit analysis of female primary education as a means of reducing HIV/AIDS in Tanzania 
Abstract:
  This article, uses panel data related to 20 Tanzania regions and 8 years
 to estimate the direct and indirect effects of female primary education on
 HIV/AIDS rates. A recursive framework for education, income and infections
 is employed, based on two autoregressive equations that allow us to obtain
 dynamic estimates of effectiveness. We find that the indirect effect
 working through changes in income outweighs the direct positive effect of
 education on infections, implying that female education can be effective
 as an intervention to lower the disease in Tanzania. The estimates of
 effectiveness are then utilized to carry out a cost-benefit analysis of
 the education expenditures. The human capital approach is used to measure
 the benefits. Irrespective of the timing of the benefits and costs, and
 the discount rate alternatives we consider, our best estimates result in
 positive net-benefits, with benefit-cost ratios in the range 1.3-2.9. 
Journal: Applied Economics 
Pages: 1731-1743 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032235 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032235 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1731-1743




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Bailey 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Bailey 
Author-Name: Jason Taylor 
Author-X-Name-First: Jason 
Author-X-Name-Last: Taylor 
Title: A concentration index for differentiated products: the case of religious competition 
Abstract:
  In the past, scholars have used a Herfindahl-Hirschman Index using
 denominational market shares to measure the competitiveness of religious
 markets. However, this approach ignores both the imperfect
 substitutability between denominations and the degree of competition
 within denominations. These two shortcomings make the current index a
 suspect measure of religious competition; it often falsely identifies
 which market micro-economists would generally consider the more
 competitive one. We develop a new religious competition index that
 incorporates intra-denominational competition and creates a
 'substitutability parameter' to better specify the appropriate degree of
 inter-denominational competition. While the model developed in this
 article applies specifically to religious markets, our index of
 competition could be expanded to other economic markets where such a
 substitutability parameter is meaningful. 
Journal: Applied Economics 
Pages: 1745-1759 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131698 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131698 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1745-1759




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Zubaidi Baharumshah 
Author-X-Name-First: Ahmad Zubaidi 
Author-X-Name-Last: Baharumshah 
Author-Name: Siti Hamizah Mohd 
Author-X-Name-First: Siti Hamizah 
Author-X-Name-Last: Mohd 
Author-Name: Sung Ahn 
Author-X-Name-First: Sung 
Author-X-Name-Last: Ahn 
Title: On the predictive power of monetary exchange rate model: the case of the Malaysian ringgit/US dollar rate 
Abstract:
  The predictive power of the monetary model for the Malaysian ringgit/US
 dollar (RM/USD) rate is analysed using quarterly data ending in 2006:Q3.
 We find compelling evidence of a long-run relationship between exchange
 rates and the economic fundamental determinant. Macroeconomic factors
 systematically affect the long-run movement of the RM/USD rate.
 Additionally, the RM/USD rate was overvalued by about 10% several quarters
 before the 1997 crisis; after the crisis, rates fluctuated close to the
 equilibrium value. The out-of-sample forecasts demonstrate that the
 monetary model outperforms the naive random walk model. The monetary and
 Purchasing Power Parity (PPP) models do well at the four to eight quarters
 horizon. 
Journal: Applied Economics 
Pages: 1761-1770 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840902817771 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902817771 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1761-1770




Template-Type: ReDIF-Article 1.0
Author-Name: Lee Chin 
Author-X-Name-First: Lee 
Author-X-Name-Last: Chin 
Author-Name: Muzafar Shah Habibullah 
Author-X-Name-First: Muzafar Shah 
Author-X-Name-Last: Habibullah 
Author-Name: M. Azali 
Author-X-Name-First: M. 
Author-X-Name-Last: Azali 
Title: Tests of different monetary aggregates for the monetary models of the exchange rate in five ASEAN countries 
Abstract:
  This study examines the usefulness of divisia money, relative to simple
 sum money, for exchange rate modelling in a period of rapid financial
 deregulation. This comparison is conducted using the monetary model of the
 exchange rate. In the long-run modelling, the divisia money is
 significantly superior to simple sum money in the case of Malaysia and the
 Philippines while indifferent for Indonesia, Singapore and Thailand. 
Journal: Applied Economics 
Pages: 1771-1783 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840902845517 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902845517 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1771-1783




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu 
Author-X-Name-First: Chun-Chu 
Author-X-Name-Last: Liu 
Title: A study of optimal weights restriction in Data Envelopment Analysis 
Abstract:
  Data Envelopment Analysis (DEA) is a mathematical programming approach to
 assessing relative efficiencies within a group of Decision Making Units
 (DMUs). An important outcome of such an analysis is a set of virtual
 multipliers or weights accorded to each (input or output) factor taken
 into account. Due to the factor weight flexibility of the DEA model, a DMU
 may assign very low-factor weight scores to some of its unfavourable
 inputs or outputs and appear as efficient, thus producing nonsensical
 results in some cases. This study focuses on this shortcoming to integrate
 an optimal weights restriction model and absolute restriction method to
 restricting weight flexibility in DEA, so that the evaluation result can
 be more realistic, and finally takes the garbage clearance of each
 district in Kaohsiung city in Taiwan as an example for the illustration. 
Journal: Applied Economics 
Pages: 1785-1790 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131706 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131706 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1785-1790




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chun Chang 
Author-X-Name-First: Shu-Chun 
Author-X-Name-Last: Chang 
Title: Assessing economic activities - an example from central business districts 
Abstract:
  The Central Business District (CBD) is a dynamic part of the city that
 changes drastically over time, and responds to forces and demands for
 activities from within and from other countries. However, it is extremely
 difficult to quantify the various propositions put forward for measuring
 economic activities in the CBD due to the paucity of statistical data.
 Planning intervention thus becomes extremely difficult as other forces
 beyond the control or knowledge of the planner play crucial roles in
 determining what activities will locate in the CBD and where they will
 locate. This study, attempts to explore a view of how to measure and
 assess central business district economic activities for planning
 purposes. It follows a critical discussion of the nature of the CBD by
 pointing to empirical studies, including examples from the New York
 metropolitan region and the city of London. Moreover, it discusses
 indicators could be used to measure and assess economic activities in the
 CBD by highlighting planning purposes covering the entire issue. 
Journal: Applied Economics 
Pages: 1791-1797 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131680 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131680 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1791-1797




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Heiland 
Author-X-Name-First: Frank 
Author-X-Name-Last: Heiland 
Title: Does the birth order affect the cognitive development of a child? 
Abstract:
  This article investigates the link between position in the birth order
 and early scholastic ability. Using matched mother-child data from the
 National Longitudinal Survey of Youth (1979 cohort, NLSY79), I find that
 being the first-born is beneficial even after controlling for (nonlinear)
 effects of family size and child characteristics. The verbal ability of
 first-borns is about one-tenth of a SD higher than for children in the
 middle of the birth order. There is no evidence that last-borns fare
 better than intermediate children. The first-born advantage is confirmed
 by estimates from within-family variation models and I argue that the
 findings are consistent with the resource dilution hypothesis. 
Journal: Applied Economics 
Pages: 1799-1818 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601083220 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601083220 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1799-1818




Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim 
Author-X-Name-First: Sangho 
Author-X-Name-Last: Kim 
Author-Name: Hyunjoon Lim 
Author-X-Name-First: Hyunjoon 
Author-X-Name-Last: Lim 
Author-Name: Donghyun Park 
Author-X-Name-First: Donghyun 
Author-X-Name-Last: Park 
Title: Imports, exports and total factor productivity in Korea 
Abstract:
  This study investigates the relationship between trade and economic
 growth in Korea during 1980-2003. We find Granger causality from imports
 to Total Factor Productivity (TFP) growth, and the absence of any causal
 relation between exports and TFP. We then, empirically examine the impact
 of various trade variables on TFP growth. Our results indicate that
 imports have a significant positive effect on TFP growth, but exports do
 not. Furthermore, our results suggest that the positive impact of imports
 stems not only from competitive pressures arising from the imports of
 consumer goods but also from technological transfers embodied in imports
 of capital goods and imports from developed countries. Most of our
 empirical results still hold when we replace TFP growth with Gross
 Domestic Profit (GDP) growth as the dependent variable. 
Journal: Applied Economics 
Pages: 1819-1834 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601032243 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032243 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1819-1834




Template-Type: ReDIF-Article 1.0
Author-Name: Miriam Manchin 
Author-X-Name-First: Miriam 
Author-X-Name-Last: Manchin 
Author-Name: Anna Maria Pinna 
Author-X-Name-First: Anna Maria 
Author-X-Name-Last: Pinna 
Title: Border effects in the enlarged EU area: evidence from imports to accession countries 
Abstract:
  By looking at imports of Eastern European countries, we provide novel
 insights on the importance and magnitude of border effects and on how they
 are linked with technical barriers to trade. All Central Eastern European
 Countries (CEECs) traded with themselves more than with other countries.
 We grouped products into three categories; depending on the importance of
 applicaple technical barriers. Our results show border effects are the
 largest for products, where we expect to have the most important technical
 barriers. We assess if border effects changed over the transition period
 and we find that for products where technical barriers are less important
 the magnitude of border effects was declining at the end of the 90s. 
Journal: Applied Economics 
Pages: 1835-1854 
Issue: 14 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601044974 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601044974 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1835-1854




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Partridge 
Author-X-Name-First: Mark 
Author-X-Name-Last: Partridge 
Author-Name: Dan Rickman 
Author-X-Name-First: Dan 
Author-X-Name-Last: Rickman 
Title: Canadian regional labour market evolutions: a long-run restrictions SVAR analysis 
Abstract:
  Canada's high reliance on commodities can work against its
 constitutionally mandated goal of regional equity in economic development,
 while also inhibiting macroeconomic performance and limiting monetary
 policy effectiveness. Yet, flexible and integrated regional labour markets
 can help achieve both equity and macroeconomic goals. Therefore, this
 study examines the dynamics of Canadian provincial labour markets using a
 long-run restrictions structural vector autoregression (SVAR) model.
 Labour market fluctuations are decomposed into the parts arising from
 shocks to labour demand (new jobs), labour supply through migration (new
 people) and internal labour supply (original residents). The results
 suggest that demand innovations primarily underlie provincial labour
 market fluctuations. Despite significant geographic and language barriers
 that could impede their performance, there also is little overall evidence
 to suggest that provincial labour markets are more sluggish or less
 flexible than US state labour markets. Finally, original residents benefit
 slightly more from increased provincial labour demand compared to findings
 for US states. 
Journal: Applied Economics 
Pages: 1855-1871 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131789 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1855-1871




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Lilla 
Author-X-Name-First: Marco 
Author-X-Name-Last: Lilla 
Author-Name: Stefano Staffolani 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Staffolani 
Title: The evolution of wage inequality in Italy 
Abstract:
  This article analyses the evolution of inequality in yearly and daily
 wages between and within groups of blue and white collar, using the
 INPS-ISFOL database for the period 1985 to 1999 in Italy. Between-group
 inequality increased in the 1990s as clerical wages grew slowly, whereas
 blue collars' wages remained nearly constant. Within-group inequality
 increased only if measured by daily wages. The covariance structure
 analysis shows that inequality comes from persistent differentials among
 older workers and from high income volatility for younger cohorts. Within
 inequalities in office and manual workers are driven by the growth of
 permanency for the older cohorts (individual abilities, say experience,
 matter more) and by the growth of income volatility for the younger
 cohorts (luck in the labour market). Within each group, low paid workers
 during their career acquire earning gains for their abilities and reduce
 differentials with respect to high paid workers. 
Journal: Applied Economics 
Pages: 1873-1892 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131771 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131771 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1873-1892




Template-Type: ReDIF-Article 1.0
Author-Name: Lee Chin 
Author-X-Name-First: Lee 
Author-X-Name-Last: Chin 
Author-Name: M. Azali 
Author-X-Name-First: M. 
Author-X-Name-Last: Azali 
Author-Name: A. Mansur M. Masih 
Author-X-Name-First: A. Mansur M. 
Author-X-Name-Last: Masih 
Title: Tests of the different variants of the monetary model in a developing economy: Malaysian experience in the pre- and post-crisis periods 
Abstract:
  This study examines the validity of four different variants of the
 monetary model of exchange rate determination for Malaysia covering both
 the pre- and post-crisis periods using the vector error-correction models.
 The findings demonstrate that for both periods, the variables used are
 cointegrated. Tests tend to suggest that of the four variants of monetary
 model, the sticky-price model holds in both periods and the flexible-price
 model holds only in the post-crisis period. The proportionality between
 the exchange rate and relative money does not hold in any period. The
 plotted actual and fitted exchange rates for both sub-samples show that
 the models are able to track the actual exchange rate trend quiet well. 
Journal: Applied Economics 
Pages: 1893-1902 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1893-1902




Template-Type: ReDIF-Article 1.0
Author-Name: I. D. McAvinchey 
Author-X-Name-First: I. D. 
Author-X-Name-Last: McAvinchey 
Author-Name: W. D. McCausland 
Author-X-Name-First: W. D. 
Author-X-Name-Last: McCausland 
Title: European monetary union and the outsiders 
Abstract:
  This article looks at the impact on a small outside country if a larger,
 outsider country were to join a nearby monetary union, exemplified by the
 likely effects on Norway of the UK deciding to join the Euro. We construct
 a theoretical model to capture such effects, which focuses on the effect
 of union on Norway as the small outside state. We then estimate the model
 using data from the period 1980-1999 (the period covering the existence of
 the ECU and the Euro), and find that there would be substantial
 implications for the management of the Norwegian economy in response to
 asymmetric shocks and EU fiscal and monetary policy. 
Journal: Applied Economics 
Pages: 1903-1916 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601137125 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601137125 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1903-1916




Template-Type: ReDIF-Article 1.0
Author-Name: Ofer Azar 
Author-X-Name-First: Ofer 
Author-X-Name-Last: Azar 
Title: Incentives and service quality in the restaurant industry: the tipping-service puzzle 
Abstract:
  Tipping is a significant economic activity (tips in the US food industry
 alone amount to about $42 billion annually) that was claimed to improve
 service quality and increase economic efficiency, because it gives
 incentives to provide excellent service, and therefore allows to avoid
 costly monitoring of workers. The article suggests that this common wisdom
 might be wrong. A simple model shows formally that tips can improve
 service only if they are sensitive enough to service quality. Empirical
 evidence suggests that tips are hardly affected by service quality.
 Nevertheless, rankings of service quality by customers are very high; the
 co-existence of these two findings is denoted 'the tipping-service
 puzzle,' and several possible explanations for it are offered. 
Journal: Applied Economics 
Pages: 1917-1927 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131813 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1917-1927




Template-Type: ReDIF-Article 1.0
Author-Name: Kwang Woo Park 
Author-X-Name-First: Kwang Woo 
Author-X-Name-Last: Park 
Author-Name: Myeong Hwan Kim 
Author-X-Name-First: Myeong Hwan 
Author-X-Name-Last: Kim 
Title: The industrial relationships in time-varying beta coefficients between Korea and United States 
Abstract:
  This article examines financial linkage of systematic risks for 20
 industry portfolio returns between Korean and US stock markets.
 Time-varying beta coefficients of Capital Asset Pricing Model are
 estimated and Granger-causality tests are carried out for identifying the
 significance of the industrial relations between the two stock markets.
 The empirical findings show that the strength and the causality of
 international financial linkage vary depending on the types of industry
 and the shocks in the systematic risk. Some Korean industries, including
 financing industries, iron and metal industries, service, and textile and
 wearing industries are relatively vulnerable to systematic risk associate
 with US industries. 
Journal: Applied Economics 
Pages: 1929-1938 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131730 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1929-1938




Template-Type: ReDIF-Article 1.0
Author-Name: Evan Lau 
Author-X-Name-First: Evan 
Author-X-Name-Last: Lau 
Author-Name: Ahmad Zubaidi Baharumshah 
Author-X-Name-First: Ahmad Zubaidi 
Author-X-Name-Last: Baharumshah 
Title: Assessing the mean reversion behaviour of fiscal policy: the perspective of Asian countries 
Abstract:
  This article investigates fiscal policy sustainability in 10 Asian
 countries by adopting a battery of unit root tests. Univariate unit root
 tests reveal that the fiscal stance in these countries follows a
 nonstationary process while the opposite conclusion was drawn for the same
 dataset using the commonly employed panel unit root techniques. By
 utilizing the series-specific panel unit-root test recently developed by
 Breuer et al. [2002, SURADF (Seemingly Unrelated Regression Augmented
 Dickey-Fuller)] that allows testing for the presence of nonstationarity
 within individual cross sections of the panel, we found that only cross
 sections four out of 10 countries in the panel are stationary. This means
 that fiscal deficits in most Asian countries are in violation of their
 intertemporal budget constraint and that the deficits are too large. 
Journal: Applied Economics 
Pages: 1939-1949 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131755 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131755 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1939-1949




Template-Type: ReDIF-Article 1.0
Author-Name: An-Sing Chen 
Author-X-Name-First: An-Sing 
Author-X-Name-Last: Chen 
Author-Name: Shih-Chuan Fang 
Author-X-Name-First: Shih-Chuan 
Author-X-Name-Last: Fang 
Title: Uniform testing and portfolio strategies for single and multifactor asset pricing models in the Pacific Basin markets 
Abstract:
  We test and implement portfolio strategies for three major asset pricing
 models, under uniform diagnostic measures using the PACAP data set
 containing all current listing and de-listing of firms for the local stock
 exchange in several Pacific Basin countries. Compared to the often used
 MSCI database that include only a subset of the (large) firms in the local
 markets, the more complete coverage of our database allows for more robust
 testing of current multifactor asset pricing models since the possible
 effects of additional factors such as size and book to market may not show
 up correctly using less comprehensive data sets. Our data set also
 provides a natural packet of nonUS data for addressing the issue of
 whether the results of recent asset pricing research are sample specific.
 Our overall results provide multi-country (sample nonspecific) support for
 the additional asset pricing risk factors of the Fama-French three-factor
 model but not for the momentum factor of the Carhart model. We
 additionally find that the size risk factor is more prominent than value
 risk factor in the Pacific Basin markets. Finally, we find strong evidence
 that portfolio strategies implemented to capture value and size effects
 are profitable in the Pacific Basin stock markets. 
Journal: Applied Economics 
Pages: 1951-1963 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131763 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131763 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1951-1963




Template-Type: ReDIF-Article 1.0
Author-Name: Chin-Tsai Lin 
Author-X-Name-First: Chin-Tsai 
Author-X-Name-Last: Lin 
Author-Name: Hsin-Yi Yeh 
Author-X-Name-First: Hsin-Yi 
Author-X-Name-Last: Yeh 
Title: Empirical of the Taiwan stock index option price forecasting model - applied artificial neural network 
Abstract:
  This work presents a novel neural network model for forecasting option
 prices using past volatilities and other options market factors. Out of
 different approaches to estimating volatility in the option pricing model,
 this study uses backpropagation neural network to forecast prices for
 Taiwanese stock index options. The ability to develop accurate forecasts
 of grey prediction volatility enables practitioners to establish an
 appropriate hedging strategy at in-the-money option. 
Journal: Applied Economics 
Pages: 1965-1972 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131672 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131672 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1965-1972




Template-Type: ReDIF-Article 1.0
Author-Name: Darwin Yu 
Author-X-Name-First: Darwin 
Author-X-Name-Last: Yu 
Author-Name: Rodolfo Aquino 
Author-X-Name-First: Rodolfo 
Author-X-Name-Last: Aquino 
Title: Testing capital structure models on Philippine listed firms 
Abstract:
  This study examines the ability of the Trade-Off (TO) model and the
 Pecking Order (PO) model to explain the financing behaviour of Philippine
 listed firms from 1990 to 2001. Using panel data regression techniques,
 the firms' leverage ratios move towards their optimal level, holding up
 the TO model. The results, however, show better support for the PO model,
 as leverage and profitability are negatively related, while financing
 deficit mostly explains the annual change in total liabilities.
 Furthermore, in joint tests, only the fitted values from the PO model
 equation continue to have additional explanatory power over fitted values
 from the TO model. Firms issued more equity than debt from 1990 to 1996
 when stock market prices were increasing rapidly, but this still fits the
 more complex version of the PO model. 
Journal: Applied Economics 
Pages: 1973-1990 
Issue: 15 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601131805 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1973-1990




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of monetary policy: introduction and overview 
Abstract:
  We introduce and summarize the results of 10 empirical studies that make
 up this special theme on monetary policy, covering a wide range of
 countries and issues. 
Journal: Applied Economics 
Pages: 1991-1993 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840903083142 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903083142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:1991-1993




Template-Type: ReDIF-Article 1.0
Author-Name: David-Jan Jansen 
Author-X-Name-First: David-Jan 
Author-X-Name-Last: Jansen 
Author-Name: Jakob De Haan 
Author-X-Name-First: Jakob 
Author-X-Name-Last: De Haan 
Title: Has ECB communication been helpful in predicting interest rate decisions? An evaluation of the early years of the Economic and Monetary Union 
Abstract:
  We examine the usefulness of communication by the European Central Bank
 for predicting its policy decisions during the early years of the European
 Economic and Monetary Union. Using ordered probit models based on the
 Taylor rule, we find that statements on the main refinancing rate and
 future inflation are significantly related to interest rate decisions. At
 the same time, an out-of-sample evaluation shows that communication-based
 models do not outperform models based on macroeconomic data in predicting
 decisions. Both types of models have difficulty in predicting changes in
 the main refinancing rate. 
Journal: Applied Economics 
Pages: 1995-2003 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802167384 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167384 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:1995-2003




Template-Type: ReDIF-Article 1.0
Author-Name: S. Gazioglu 
Author-X-Name-First: S. 
Author-X-Name-Last: Gazioglu 
Author-Name: W. D. McCausland 
Author-X-Name-First: W. D. 
Author-X-Name-Last: McCausland 
Title: Interest rates and monetary policy 
Abstract:
  This article conducts a thorough intertemporal analysis of nominal
 interest rate based monetary policy. Its main contribution is to show how
 such a policy can have different effects depending on the assumptions made
 about the saving and borrowing behaviour of firms. We consider two cases:
 (i) consumers are savers and firms are borrowers and (ii) both consumers
 and firms are borrowers (the nation as a whole is borrowing from abroad).
 In one case we confirm conventional wisdom, but in the other case we find
 there may be unexpected and surprising results. Moreover, our analysis has
 important implications for both inflation and nominal exchange rate
 targeting policies. 
Journal: Applied Economics 
Pages: 2005-2012 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2005-2012




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Merkl 
Author-X-Name-First: Christian 
Author-X-Name-Last: Merkl 
Author-Name: Stephanie Stolz 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: Stolz 
Title: Banks' regulatory buffers, liquidity networks and monetary policy transmission 
Abstract:
  Based on a quarterly regulatory dataset for German banks from 1999 to
 2004, this article analyses the effects of banks' regulatory capital on
 the transmission of monetary policy in a system of liquidity networks. The
 dynamic panel regression results provide evidence in favour of the bank
 capital channel theory. Banks holding less regulatory capital and less
 interbank liquidity react more restrictively to a monetary tightening than
 their peers. 
Journal: Applied Economics 
Pages: 2013-2024 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802360245 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360245 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2013-2024




Template-Type: ReDIF-Article 1.0
Author-Name: H. Sonmez Atesoglu 
Author-X-Name-First: H. Sonmez 
Author-X-Name-Last: Atesoglu 
Author-Name: Jamie Emerson 
Author-X-Name-First: Jamie 
Author-X-Name-Last: Emerson 
Title: Long-run monetary neutrality 
Abstract:
  In this article, we provide a test of long-run monetary neutrality
 employing cointegration and vector error-correction modelling methodology.
 Using quarterly data for the United States, we estimate the long-run
 relationships among money supply and output and other key macroeconomic
 variables. Our findings, in general, raise doubts about the long-run
 monetary neutrality proposition. 
Journal: Applied Economics 
Pages: 2025-2036 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701604479 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604479 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2025-2036




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Paez-Farrell 
Author-X-Name-First: Juan 
Author-X-Name-Last: Paez-Farrell 
Title: Monetary policy rules in theory and in practice: evidence from the UK and the US 
Abstract:
  Given the large amount of interaction between research on monetary policy
 and its practice, this article examines whether some simple monetary
 policy rules that have been proposed in the academic literature, part of
 which has originated from within central banks, provide a reasonable
 characterization of actual policy in the United Kingdom and the United
 States. The article finds the simple rule that describes best the actual
 US monetary policy is a speed limit rule with dynamics, whilst for the UK
 it is a forward-looking rule. The simpler dynamics in the UK's monetary
 policy rule are reflective of the lower persistence of inflation as a
 result of its policy of inflation targeting. 
Journal: Applied Economics 
Pages: 2037-2046 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701689496 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701689496 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2037-2046




Template-Type: ReDIF-Article 1.0
Author-Name: Yanchun Zhang 
Author-X-Name-First: Yanchun 
Author-X-Name-Last: Zhang 
Title: The role of monetary shocks and real shocks on the current account, the terms of trade and the real exchange rate dynamics: a SVAR analysis 
Abstract:
  The article is an empirical investigation of the role of monetary shocks
 and real shocks on the current account, the terms of trade and the real
 exchange rate dynamics. Three new open economy macro-economics (NOEM)
 models are studied to motivate the empirical investigation. Then I apply
 the Blanchard-Quah decomposition to identify a SVAR model. The empirical
 evidence supports the NOEM model with the simplified household preference
 specification and with the small degree of pricing-to-market. The evidence
 also illustrates monetary shocks important for the real exchange rate and
 the terms of trade movements, but not for the current account
 fluctuations. 
Journal: Applied Economics 
Pages: 2047-2063 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701721034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721034 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2047-2063




Template-Type: ReDIF-Article 1.0
Author-Name: Aaron Jackson 
Author-X-Name-First: Aaron 
Author-X-Name-Last: Jackson 
Author-Name: William Miles 
Author-X-Name-First: William 
Author-X-Name-Last: Miles 
Title: Quantitative goals for monetary policy: a quantile regression approach 
Abstract:
  A recent paper by Fatas et al. (2006) indicates that formal monetary
 policy targets-exchange rate, money supply or inflation targets-palpably
 decrease inflation in a sample of 40 countries. The authors employ various
 least squares estimations, which pick up the conditional average effect.
 However, there is wide inflation variability in the authors' sample. Thus,
 formal targets could have very different effects in high- and low-
 inflation countries. Accordingly, we utilize the technique of quantile
 regression, a method frequently used in labour economics. We find, in a
 sample of low- and moderate-inflation countries, that formal targets exert
 no significant impact on low-inflation nations. This result is important
 for debates over formal targets, such as whether the United States should
 adopt an inflation target. There are costs and benefits in having formal
 targets, and finding that targets do not decrease inflation, when it is
 already moderate, is an important piece of information to consider. 
Journal: Applied Economics 
Pages: 2065-2071 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701736123 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736123 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2065-2071




Template-Type: ReDIF-Article 1.0
Author-Name: Tarron Khemraj 
Author-X-Name-First: Tarron 
Author-X-Name-Last: Khemraj 
Title: Excess liquidity and the foreign currency constraint: the case of monetary management in Guyana 
Abstract:
  This article examines why commercial banks in Guyana demand
 nonremunerated excess reserves, a phenomenon that became even more
 widespread after financial liberalization. Despite the removal of capital
 controls, banks do not invest all excess reserves in a safe foreign asset
 because the central bank maintains an unofficial foreign currency
 constraint by accumulating international reserves. The findings suggest
 that commercial banks do not demand excess reserves for precautionary
 purpose-which is the conclusion of several other studies-but rather
 because of the maintained constraint. The estimated sterilization
 coefficient is consistent with the hypothesis of an enforced constraint.
 The results, moreover, suggest an alternative way of looking at the
 monetary transmission mechanism in developing countries. The central bank
 maintains price and exchange rate stability through the accumulation of
 foreign reserves. 
Journal: Applied Economics 
Pages: 2073-2084 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701857994 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857994 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2073-2084




Template-Type: ReDIF-Article 1.0
Author-Name: Kerim Peren Arin 
Author-X-Name-First: Kerim Peren 
Author-X-Name-Last: Arin 
Author-Name: Timur Han Gur 
Author-X-Name-First: Timur Han 
Author-X-Name-Last: Gur 
Title: Exchange rate versus monetary aggregate targeting: the Turkish case 
Abstract:
  This article compares and contrasts the macroeconomic effects of exchange
 rate targeting and money supply targeting by using quarterly data from
 Turkey for the period February 1986-March 2000. The results of the VAR
 analysis show that the exchange rate does not have the traditional
 'hump-shaped effect' that money supply has on output. In addition, we
 observe that an exchange rate depreciation leads to a temporary
 improvement in the trade balance for only a year, while monetary
 innovations have longer-lasting effects. Those results suggest that
 money-based targeting is more appropriate than exchange-rate targeting for
 Turkey. 
Journal: Applied Economics 
Pages: 2085-2092 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601019190 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019190 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2085-2092




Template-Type: ReDIF-Article 1.0
Author-Name: George Georgopoulos 
Author-X-Name-First: George 
Author-X-Name-Last: Georgopoulos 
Title: Measuring regional effects of monetary policy in Canada 
Abstract:
  This article measures monetary policy shocks and examines whether the
 effects of such shocks have differential regional effects in Canada. We
 identify three possible sources of regional effects: differences in the
 importance of interest-sensitive industries, differences in the
 contribution of exports to output and differences in the proportion of
 small relative to large firms. Using the overnight interest rate as the
 instrument of monetary policy, we present impulse responses of industry
 output from a recursive vector autoregression, which incorporates a
 cointegrating relation. The results show that manufacturing and primary
 industries are the most interest sensitive. We conduct impulse responses
 of provincial employment from a monetary contraction. The results show
 that Newfoundland and Prince Edward Island (PEI), primary industry-based
 provinces, are strongly and adversely affected by a monetary contraction.
 Manitoba, Saskatchewan and Alberta, also primary-based, are also affected.
 Ontario, which is manufacturing-based, is also affected but to a lesser
 extent. The response of Quebec, New Brunswick, Nova Scotia and British
 Columbia are not statistically significant. 
Journal: Applied Economics 
Pages: 2093-2113 
Issue: 16 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701604362 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604362 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2093-2113




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Yilmazkuday 
Author-Name: M. Ege Yazgan 
Author-X-Name-First: M. Ege 
Author-X-Name-Last: Yazgan 
Title: Effects of credit and debit cards on the currency demand 
Abstract:
  We analyze the effects of credit and debit cards on the currency in
 circulation by using GMM estimation. Instead of using the data obtained by
 surveys, we use monthly data obtained by an interbank institution that
 keeps the statistics of all credit and debit cards usage of a small open
 economy, Turkey, for the period over 2002M1-2006M10. As expected from the
 theory, we find that an increase in the usage of credit and debit cards
 leads to a decrease in the currency demand. Moreover, the usage of the
 debit cards has a bigger effect on the money demand, compared to the usage
 of the credit cards. We also find that the effect of credit cards is
 mostly through purchases and the effect of debit cards is mostly through
 withdrawals 
Journal: Applied Economics 
Pages: 2115-2123 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222496 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222496 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2115-2123




Template-Type: ReDIF-Article 1.0
Author-Name: W. Allard Bruinshoofd 
Author-X-Name-First: W. Allard 
Author-X-Name-Last: Bruinshoofd 
Author-Name: Clemens Kool 
Author-X-Name-First: Clemens 
Author-X-Name-Last: Kool 
Title: Nonlinear target adjustment in corporate liquidity management: an endogenous thresholds approach 
Abstract:
  We provide new empirical evidence on nonlinear liquidity management in
 Dutch firms. Our results reveal that liquidity adjustment from below the
 target is significantly faster than from above. We find no evidence for
 bands of inaction around the target. 
Journal: Applied Economics 
Pages: 2125-2131 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222587 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222587 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2125-2131




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Martins 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Martins 
Title: Rent sharing before and after the wage bill 
Abstract:
  Many biases plague the analysis of whether employers share rents with
 their employees, unlike what is predicted by the competitive labour market
 model. Using a Portuguese matched employer-employee panel, this article is
 one of the first to address these biases in three complementary ways: (1)
 Controlling directly for the fact that firms that share more rents will,
 ceteris paribus, have lower net-of-wages profits. (2) Instrumenting
 profits via interactions between the exchange rate and the share of
 exports in firm's total sales. (3) Considering firm or firm/worker spell
 fixed effects and highlighting the role of downward wage rigidity. These
 approaches clarify conflicting findings in the literature and result, in
 our preferred specifications, in significant evidence of rent sharing (a
 Lester range of pay dispersion of 56%), also shown to be robust to a
 number of competitive interpretations. 
Journal: Applied Economics 
Pages: 2133-2151 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701736164 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736164 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2133-2151




Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Marti 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Marti 
Author-Name: Juan Matallin 
Author-X-Name-First: Juan 
Author-X-Name-Last: Matallin 
Author-Name: M Angeles Fernandez 
Author-X-Name-First: M Angeles 
Author-X-Name-Last: Fernandez 
Title: Determinants of pension plan fees in Spain 
Abstract:
  Pension plans and funds represent a substantial part of the welfare
 systems in both Europe and Spain. One of the most important factors in the
 choice of a plan or fund is the performance it obtains. In view of the
 influence that fees have on performance, the objective of this study is to
 analyse the variables that determine the management and custodial fees of
 individual pension plans. The Spanish market for pension plans and funds
 sets legal caps on these fees, and at the same time the majority of them
 are commercialized and managed by financial institutions, which can in
 turn generate a conflict of interests. In this article, we estimate models
 with censured variables and our findings show how the average investment
 per plan, the legal status and the size of the management company to which
 the plan belongs, and the style of the plan are all relevant determinants
 of the management fee. In turn, the custodial fee is determined by the
 legal status of the custodial company, the size, the return and the type
 of plan. 
Journal: Applied Economics 
Pages: 2153-2168 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222462 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2153-2168




Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya 
Author-X-Name-First: Mita 
Author-X-Name-Last: Bhattacharya 
Author-Name: Jong-Rong Chen 
Author-X-Name-First: Jong-Rong 
Author-X-Name-Last: Chen 
Title: Market dynamics and dichotomy: evidence from Taiwanese manufacturing 
Abstract:
  In Taiwan, a dichotomous market structure is closely related to the
 progress of economic development. The purpose of the present article is to
 examine the market dynamics and dichotomous nature of Taiwanese
 manufacturing. A model of dynamic adjustment of industry structure is
 considered when both the speed of adjustment and the long-run market
 concentration are allowed to vary across industries. We use 118 four-digit
 manufacturing industries for empirical analysis of our models spanning
 between 1981 and 1991. Empirical findings show that both the speed of
 adjustment and long-run industry concentration are predominantly
 determined by minimum efficient scale. The speed of adjustment is much
 faster in a small open economy like Taiwan compared to mature economies
 like the US and Australia. In addition, the dichotomous nature of the
 market is supported in our findings for both periods, viz, 1981-1986 and
 1986-1991, albeit weaker for the later period. 
Journal: Applied Economics 
Pages: 2169-2179 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222470 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222470 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2169-2179




Template-Type: ReDIF-Article 1.0
Author-Name: Kang Ernest Liu 
Author-X-Name-First: Kang Ernest 
Author-X-Name-Last: Liu 
Title: A globally flexible, quadratic almost ideal demand system: an application to demand for meats and fish in Taiwan 
Abstract:
  A new demand system, called a globally flexible, quadratic almost ideal
 demand system (GF-QUAIDS), integrates both the quadratic Engel curve and
 the Fourier series. This novel GF-QUAIDS model is applied to study the
 demand for meats and fish in Taiwan. Empirical results show that the
 GF-QUAIDS fits the data well and that, by using the likelihood ratio test,
 its nested models are rejected, including the locally flexible functional
 form and the linear Engel curve. Nevertheless, other empirical
 model-selection measures indicate that the GF-QUAIDS can be as good as its
 famous nested models such as the AIDS, QUAIDS and GF-AIDS. 
Journal: Applied Economics 
Pages: 2181-2189 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335504 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335504 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2181-2189




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Heck 
Author-X-Name-First: Jean 
Author-X-Name-Last: Heck 
Author-Name: Peter Zaleski 
Author-X-Name-First: Peter 
Author-X-Name-Last: Zaleski 
Author-Name: Scott Dressler 
Author-X-Name-First: Scott 
Author-X-Name-Last: Dressler 
Title: Leading institutional contributors to the elite economic journals 
Abstract:
  Given the prestige enjoyed by several economic departments, there is a
 natural curiosity regarding their contributions to the economic
 literature. This article, analyses the appearance of all academic
 institutions worldwide in the eight leading economic journals, the 'Blue
 Ribbon Eight,' from 1991 to 2005. We cite those institutions who appear
 the most, and analyse the composition of appearances across all eight
 journals to assess their degree of diversity. While it is tempting to use
 these measures as a ranking of institutions, the analysis is meant to be
 purely an historical appreciation of the contributions of these admirable
 institutions. 
Journal: Applied Economics 
Pages: 2191-2196 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701206598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701206598 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2191-2196




Template-Type: ReDIF-Article 1.0
Author-Name: Felipa de Mello-Sampayo 
Author-X-Name-First: Felipa 
Author-X-Name-Last: de Mello-Sampayo 
Title: Competing-destinations gravity model: an application to the geographic distribution of FDI 
Abstract:
  The competing-destinations formulation of the gravity model ensues from
 the fact that unlike the classical version, this approach explicitly
 acknowledges the interdependence of the flows between a set of alternative
 locations, i.e. country-recipients are competing for Foreign Direct
 Investment (FDI). This article examines empirically a range of theoretical
 hypotheses about the determinants of FDI location in a panel data
 regression framework. The results of the estimation of a gravity model
 lend support to the proximity-concentration and internalization
 hypotheses. Also, the fact that FDI has been found to be decreasing in the
 competition posed by alternative locations is suggestive of the
 superiority of the competing-destinations version of the gravity equation
 over its classical formulation. 
Journal: Applied Economics 
Pages: 2237-2253 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701765346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2237-2253




Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Benfratello 
Author-X-Name-First: Luigi 
Author-X-Name-Last: Benfratello 
Author-Name: Massimiliano Piacenza 
Author-X-Name-First: Massimiliano 
Author-X-Name-Last: Piacenza 
Author-Name: Stefano Sacchetto 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Sacchetto 
Title: Taste or reputation: what drives market prices in the wine industry? Estimation of a hedonic model for Italian premium wines 
Abstract:
  The aim of this article is to provide new evidence on the factors
 affecting wine prices on both methodological and factual grounds. On the
 methodological ground, this study is the first to apply a general Box-Cox
 transformation within the context of hedonic models which exploit all the
 variables (objective and sensorial characteristics, reputation) pointed
 out by previous literature as relevant in driving market prices. On the
 factual ground, the article fills the lack of empirical evidence on the
 issue for Italy, one of the leading wine producers, by using a large data
 set on two premium quality wines (Barolo and Barbaresco) covering the
 1995-1998 vintages. Our results support the evidence obtained using data
 from other countries, showing that sensorial traits, the reputation of
 wines and producers, as well as objective variables are all important
 factors influencing the consumers' willingness to pay. More importantly,
 by resorting to a nonnested statistical test (Vuong, 1989) we compare two
 alternative specifications (taste vs. reputation) and find that the
 reputation model significantly outperforms the taste one, whereby
 suggesting that a greater amount of information on how the wine price is
 formed is contained in the reputation specification. 
Journal: Applied Economics 
Pages: 2197-2209 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222439 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222439 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2197-2209




Template-Type: ReDIF-Article 1.0
Author-Name: Bethany Peters 
Author-X-Name-First: Bethany 
Author-X-Name-Last: Peters 
Title: The drinkers' bonus in the military: officers versus enlisted personnel 
Abstract:
  Applied Economics published the first article reporting the findings of
 drinkers earning more than nondrinkers in 1988. The positive correlation
 between drinking and higher wages has existed in the economics literature
 on alcohol consumption for almost two decades. However, a clear
 explanation for this finding is only beginning to emerge. I use data on
 male military personnel from the 1985 Worldwide Survey of Alcohol and
 Nonmedical Drug Use Among Military Personnel to explore a theory of social
 capital. Specifically, one way individuals can invest in social capital is
 through drinking in certain settings. Abstainers miss out on opportunities
 to increase their social capital stock because they forego social
 interaction that could result in promotion. Some evidence comes from
 exploring the wage bonus for Officers versus Enlisted. I find the effect
 of different drinking levels on wages varies with station in the military.
 Officers who drink between two and 38 drinks per week earn between 2 and
 8% more than Officers who abstain. Alternatively, enlisted personnel gain
 a much smaller bonus from drinking, which is consistent with the ways in
 which the military differs on Officers and Enlisted promotions, thus
 supporting evidence for social capital as a wage-enhancing drinking
 mechanism. 
Journal: Applied Economics 
Pages: 2211-2220 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222447 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222447 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2211-2220




Template-Type: ReDIF-Article 1.0
Author-Name: R. Bar&#x131;s Tekin 
Author-X-Name-First: R. Bar&#x131;s 
Author-X-Name-Last: Tekin 
Author-Name: M. Ege Yazgan 
Author-X-Name-First: M. Ege 
Author-X-Name-Last: Yazgan 
Title: Exchange rate pass-through in Turkish export and import prices 
Abstract:
  This article examines exchange rate pass-through into prices of
 internationally traded goods in the case of a small emerging open market
 economy such as Turkey. In this study, we provide empirical evidence on
 complete pass-through in export prices in Turkey using aggregate data on
 the manufacturing sector. Our data do not however support complete
 pass-through in import prices in Turkey. This contradicts with the
 findings of the existent literature, which typically concludes that the
 degree of pass-through in import prices is higher than the one of export
 prices. This can be interpreted as a result of competition between import
 and import substituting industries where importers fall short of competing
 successfully with import substituting sectors. Although Turkish importers
 can be responsive to exchange rate changes to a certain degree in the
 short-run, in the long-run, they seem to lose their market power perhaps
 as a result of swift competition. A complete exchange rate pass-through to
 export prices in Turkey implies that the Turkish manufacturing export
 sector has the competitive strength to transmit exchange rate movements
 into their prices. 
Journal: Applied Economics 
Pages: 2221-2228 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222454 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2221-2228




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Fehder 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Fehder 
Author-Name: Edward Nelling 
Author-X-Name-First: Edward 
Author-X-Name-Last: Nelling 
Author-Name: Jeffrey Trester 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Trester 
Title: Innovation and price: the case of digital cameras 
Abstract:
  This study examines a hedonic regression model of digital camera prices
 using data collected from an internet price comparison service. We find
 that a small number of product characteristics explains most of the
 variation in camera prices. In addition, the model demonstrates
 substantial downward pressure on camera prices during the time period
 considered. We also examine technological innovation shocks to determine
 their impact on product prices. We find that the corresponding price
 reaction exhibits gradual adjustment over time, providing evidence of some
 degree of anticipation of the innovation, as well as a post-innovation
 price shock. This study also demonstrates the power of web-based shopping
 services as a new and novel source of data for econometric analysis. 
Journal: Applied Economics 
Pages: 2229-2236 
Issue: 17 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222488 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222488 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2229-2236




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Connelly 
Author-X-Name-First: Richard 
Author-X-Name-Last: Connelly 
Author-Name: Rajeev Goel 
Author-X-Name-First: Rajeev 
Author-X-Name-Last: Goel 
Author-Name: Rati Ram 
Author-X-Name-First: Rati 
Author-X-Name-Last: Ram 
Title: Demand for cigarettes in the United States: effects of prices in bordering states and contiguity with Mexico and Canada 
Abstract:
  Based on a cross-section of US states for 2004, this article estimates a
 demand function for cigarettes after including a proxy for prices in the
 bordering states and simple proxies for contiguity with Mexico and Canada
 and for being a major tobacco producer. One major point seems to be that
 the negative elasticity for within-state price is similar in magnitude to
 the positive elasticity for the (lowest) price in bordering states.
 Several additional points also seem noteworthy. First, having a border
 with Mexico lowers sales in the state sizably. Second, the share of
 Hispanic/Latino population in the state also lowers sales significantly.
 Third, contiguity with Canada appears to have no significant effect.
 Fourth, partial impact of the state being a major tobacco producer appears
 minor even though consumption in these states is considerably higher.
 Fifth, education shows the expected negative association with cigarette
 consumption, but its statistical significance is low. Last, income carries
 a weak negative parameter, perhaps reflecting the lower prevalence of
 smoking in higher-income households. 
Journal: Applied Economics 
Pages: 2255-2260 
Issue: 18 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222637 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222637 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2255-2260




Template-Type: ReDIF-Article 1.0
Author-Name: Marina Della Giusta 
Author-X-Name-First: Marina 
Author-X-Name-Last: Della Giusta 
Author-Name: Maria Laura Di Tommaso 
Author-X-Name-First: Maria Laura 
Author-X-Name-Last: Di Tommaso 
Author-Name: Isilda Shima 
Author-X-Name-First: Isilda 
Author-X-Name-Last: Shima 
Author-Name: Steinar Str&#xf8;m 
Author-X-Name-First: Steinar 
Author-X-Name-Last: Str&#xf8;m 
Title: What money buys: clients of street sex workers in the US 
Abstract:
  The article presents a review of current theoretical and empirical
 approaches to sex work, followed by the presentation of an original
 theoretical framework (Della Giusta et al., 2006), which is tested with an
 econometric model of the characteristics of demand for sex services by a
 sample of clients of street sex workers in the US. We present findings in
 relation to stigma and the relationship between paid and unpaid sex that
 corroborate our model's hypotheses and are in line with findings from
 other empirical studies. Furthermore, we identify in our sample two
 diametrically opposite profiles: one for clients whom we label
 'experimenters', and one for more experienced ones that we name
 'regulars', we also estimate attitudes toward risk, and draw implications
 in terms of both policy and future theoretical and empirical research. 
Journal: Applied Economics 
Pages: 2261-2277 
Issue: 18 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222561 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2261-2277




Template-Type: ReDIF-Article 1.0
Author-Name: Judith Clarke 
Author-X-Name-First: Judith 
Author-X-Name-Last: Clarke 
Author-Name: Nilanjana Roy 
Author-X-Name-First: Nilanjana 
Author-X-Name-Last: Roy 
Author-Name: Marsha Courchane 
Author-X-Name-First: Marsha 
Author-X-Name-Last: Courchane 
Title: On the robustness of racial discrimination findings in mortgage lending studies 
Abstract:
  That mortgage lenders have complex underwriting standards, often
 differing legitimately from one lender to another, implies that any
 statistical model estimated to approximate these standards, for use in
 fair lending determinations, must be misspecified. Exploration of the
 sensitivity of disparate treatment findings from such statistical models
 is, thus, imperative. We contribute to this goal. This article examines
 whether the conclusions from several bank-specific studies, undertaken by
 the Office of the Comptroller of the Currency, are robust to changes in
 the link function adopted to model the probability of loan approval and to
 the approach used to approximate the finite sample null distribution for
 the disparate treatment hypothesis test. Our evidence, of discrimination
 findings that are reasonably robust to the range of examined link
 functions, suggests that regulators and researchers can be reasonably
 comfortable with their current use of the logit link. Based on several
 features of our results, we advocate regular use of a resampling method to
 determine p-values. 
Journal: Applied Economics 
Pages: 2279-2297 
Issue: 18 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222579 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222579 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2279-2297




Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende 
Author-X-Name-First: Marcelo 
Author-X-Name-Last: Resende 
Author-Name: Henrique Cesar Tupper 
Author-X-Name-First: Henrique Cesar 
Author-X-Name-Last: Tupper 
Title: Service quality in Brazilian mobile telephony: an efficiency frontier analysis 
Abstract:
  The mobile telephony sector is characterized by the dynamic interplay of
 rapid changes in technology and an apparently growing competition, as
 indicated by the fierce nonprice competition, and is yet associated with
 the entry of new operating companies in some cases. In this context, a
 relevant and neglected issue is the assessment of how service quality
 responded to an increasingly competitive environment. This study utilizes
 data envelopment analysis to assess the quality efficiency of mobile
 telephony companies in Brazil during the 2000-2003 period. Window analysis
 was conducted for the entire period, taking as reference different quality
 indicators pertaining to different forms of complaints and calls completed
 and interrupted. The efficiency measurement was made feasible by
 interpreting the indicators reflecting a positive dimension of quality as
 outputs and those reflecting negative aspects of quality as inputs. Given
 potential heterogeneities across firms that relate to the frequency band
 and to the technology (time division multiple access technology and code
 division multiple access technology among others), this article considered
 adjusted efficiency scores. The Tobit model for censored data was
 estimated to control for the aforementioned aspects. Rescaled residuals
 from the econometric estimation produced efficiency scores for service
 quality. The evidence indicated an overall improvement in efficiency over
 time. Nonparametric tests were consistent with a positive evolution of
 quality over time even for shorter subperiods. 
Journal: Applied Economics 
Pages: 2299-2307 
Issue: 18 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222595 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222595 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2299-2307




Template-Type: ReDIF-Article 1.0
Author-Name: Marianna Brunetti 
Author-X-Name-First: Marianna 
Author-X-Name-Last: Brunetti 
Author-Name: Costanza Torricelli 
Author-X-Name-First: Costanza 
Author-X-Name-Last: Torricelli 
Title: Economic activity and recession probabilities: information content and predictive power of the term spread in Italy 
Abstract:
  The aim of the present article is to examine the information content of
 the Italian term spread as for real economic growth rates and recession
 probabilities and to test its predictive power in forecasting regime
 probabilities. To this end the relationship between the term spread and
 economic growth rates is modelled as a nonlinear one and specifically the
 Logistic Smooth Transition model is used, while a probit model is
 implemented to forecast recession probabilities. Specific to this article
 is the use of the OECD business cycle chronology, which was never used
 before to this end for the Italian case. Overall evidence supports the
 informative content of the spread in Italy over the whole period
 (1984-2005) although results are more satisfactory as from 1992. In
 particular, recession forecasts are generally better than those obtained
 with other chronologies previously adopted for the Italian case (ISAE and
 ECRI). 
Journal: Applied Economics 
Pages: 2309-2322 
Issue: 18 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222512 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222512 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2309-2322




Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Serra 
Author-X-Name-First: Teresa 
Author-X-Name-Last: Serra 
Author-Name: David Zilberman 
Author-X-Name-First: David 
Author-X-Name-Last: Zilberman 
Author-Name: Jose Gil 
Author-X-Name-First: Jose 
Author-X-Name-Last: Gil 
Author-Name: Allen Featherstone 
Author-X-Name-First: Allen 
Author-X-Name-Last: Featherstone 
Title: The effects of decoupling on land allocation 
Abstract:
  The purpose of this article is to study the impact of agricultural policy
 decoupling on land allocation decisions. Our analysis contributes to the
 literature by formally assessing the effects of decoupling on farms' crop
 mix and on the decision to set land aside. The analysis is undertaken
 within the framework of the model of production under uncertainty
 developed by Just and Zilberman (1986). Our empirical application focuses
 on a sample of Kansas farms observed from 1998 to 2001. Results show that
 US agricultural policy decoupling has resulted in a shift in land use away
 from program crops towards nonprogram commodities offering higher expected
 profits and idle land. 
Journal: Applied Economics 
Pages: 2323-2333 
Issue: 18 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222520 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222520 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2323-2333




Template-Type: ReDIF-Article 1.0
Author-Name: David Bivin 
Author-X-Name-First: David 
Author-X-Name-Last: Bivin 
Author-Name: Brad Humphreys 
Author-X-Name-First: Brad 
Author-X-Name-Last: Humphreys 
Title: Accounting for output fluctuations in manufacturing 
Abstract:
  There is a substantial body of evidence to the effect that output is more
 volatile than sales among manufacturing industries. Numerous explanations
 have been advanced to account for this excess output volatility. Some
 examples are pro-cyclical inventory movements induced by a
 stockout-avoidance motive, cost and technology shocks and decreasing
 marginal costs. This article assesses the contribution of these different
 motives to output volatility for six different manufacturing industries.
 Linear-quadratic models are estimated for each of the industries and then
 dynamic simulations are employed to determine the volatility of output
 when one or more of the factors are removed from the model. Technology
 shocks provide the most significant contribution to output volatility. The
 stockout-avoidance motive is also important. Cost shocks provide a very
 small contribution and marginal production costs are increasing at the
 margin and thus stabilize output. It is also shown that output volatility
 declines when current values of sales and material costs are assumed known
 rather than forecasted from prior periods' values. 
Journal: Applied Economics 
Pages: 2335-2352 
Issue: 18 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222538 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222538 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2335-2352




Template-Type: ReDIF-Article 1.0
Author-Name: Catarina Figueira 
Author-X-Name-First: Catarina 
Author-X-Name-Last: Figueira 
Author-Name: Joseph Nellis 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Nellis 
Author-Name: David Parker 
Author-X-Name-First: David 
Author-X-Name-Last: Parker 
Title: The effects of ownership on bank efficiency in Latin America 
Abstract:
  In recent years many countries have privatised their state-owned banks
 and encouraged foreign investment. This article investigates the roles of
 state and private ownership and foreign and domestic ownership on the
 performance of banks across Latin America. Using a range of financial and
 economic ratios, data envelopment analysis (DEA) and regression modelling,
 the study reveals that by 2001 there was surprisingly little difference in
 performance between state-owned and privately-owned banks and between
 foreign and domestically-owned banks. The study also reports significantly
 different levels of bank performance in different Latin American
 countries, suggesting that country differences outweighed ownership
 differences in explaining performance. 
Journal: Applied Economics 
Pages: 2353-2368 
Issue: 18 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222546 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222546 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2353-2368




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre-Guillaume Meon 
Author-X-Name-First: Pierre-Guillaume 
Author-X-Name-Last: Meon 
Title: Voting and turning out for monetary integration: the case of the French referendum on the Maastricht treaty 
Abstract:
  This article analyses the voting and abstention patterns in French
 departments in the 1992 referendum on the Maastricht treaty, in light of
 the potential impact of monetary union. We observe that departmental
 characteristics implying either greater benefits or lower costs from
 monetary union are significantly correlated with the approval rate. This
 supports the view that the voting behaviour of individual agents depended
 on their self-interest. The impact of economic characteristics on the
 abstention rate is less clear. Indeed, the variable that is most
 significantly correlated with abstention in the referendum is average
 abstention in other elections. 
Journal: Applied Economics 
Pages: 2369-2384 
Issue: 18 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222504 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222504 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2369-2384




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of employment: introduction and overview 
Abstract:
  We provide an introduction and overview to the 10 applied studies making
 up this themed issue on employment. The studies cover a wide range of
 national and regional experience and employ a variety of applied
 techniques. 
Journal: Applied Economics 
Pages: 2385-2387 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840903119342 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903119342 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2385-2387




Template-Type: ReDIF-Article 1.0
Author-Name: Horst Feldmann 
Author-X-Name-First: Horst 
Author-X-Name-Last: Feldmann 
Title: The effects of hiring and firing regulation on unemployment and employment: evidence based on survey data 
Abstract:
  We use the results of surveys among senior business executives to measure
 the strictness of hiring and firing regulations. The survey data are more
 likely than objective indicators (used in almost all previous studies) to
 correctly capture the de facto strictness of these regulations and their
 relevance to the performance of the labour market. Using data from 19
 industrial countries for the period 1992 to 2002, we find that more
 flexible regulations are likely to lower unemployment and to increase
 employment rates. While the effects on the general population appear to be
 modest, the effects on female, young and low-skilled workers seem to be
 substantial. 
Journal: Applied Economics 
Pages: 2389-2401 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701736131 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736131 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2389-2401




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Collender 
Author-X-Name-First: Robert 
Author-X-Name-Last: Collender 
Author-Name: Sherrill Shaffer 
Author-X-Name-First: Sherrill 
Author-X-Name-Last: Shaffer 
Title: Banking structure and employment growth 
Abstract:
  Recent studies have documented an association between financial structure
 and per capita income growth. The relationship between financial structure
 and job growth, by contrast, is an unexplored issue of independent
 interest. Here we find that US nonmetropolitan employment grew faster in
 1973-1996 where there were fewer locally owned bank offices and a more
 concentrated initial banking market structure; these linkages were less
 stable in metropolitan areas. In addition, controlling for employment
 growth does not undermine the empirical linkage between initial bank
 structure and subsequent per capita income growth. 
Journal: Applied Economics 
Pages: 2403-2417 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840801998607 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801998607 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2403-2417




Template-Type: ReDIF-Article 1.0
Author-Name: Per Engstrom 
Author-X-Name-First: Per 
Author-X-Name-Last: Engstrom 
Author-Name: Bertil Holmlund 
Author-X-Name-First: Bertil 
Author-X-Name-Last: Holmlund 
Title: Tax evasion and self-employment in a high-tax country: evidence from Sweden 
Abstract:
  Self-employed individuals have arguably greater opportunities than wage
 earners to underreport their incomes. This article uses recent Swedish
 income and expenditure data to examine the extent of underreporting of
 income among self-employed individuals. A key hypothesis is that
 underreporting of incomes among the self-employed would be visible in the
 data as 'excess food consumption', for a given level of observed income.
 Our results confirm the underreporting hypothesis. In particular, we
 estimate that households with at least one self-employed member
 underreport their total incomes by around 30%. Under-reporting appears to
 be much more prevalent among self-employed people with unincorporated
 businesses as among those with incorporated businesses. 
Journal: Applied Economics 
Pages: 2419-2430 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701765452 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765452 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2419-2430




Template-Type: ReDIF-Article 1.0
Author-Name: Yao-Tung Chen 
Author-X-Name-First: Yao-Tung 
Author-X-Name-Last: Chen 
Title: Market integration between developing countries and urban unemployment-the perspective of the real minimum wage 
Abstract:
  This article examines the effect of market integration through free trade
 and factor mobility on the urban unemployment rate of a developing country
 whose economy is large enough to influence the terms of trade. From the
 perspective of the real minimum wage, it is shown that free trade would
 result in a rise or a decline in the country's urban unemployment rate,
 depending on its trade pattern. While the effect of labour mobility on a
 country's urban unemployment rate is determined by the difference between
 the ratio of would-be farmers to incoming workers and that of farm leavers
 to outgoing workers, the result of capital mobility will depend on a
 comparison of the initial urban unemployment rates of two countries. 
Journal: Applied Economics 
Pages: 2431-2447 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840801964740 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964740 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2431-2447




Template-Type: ReDIF-Article 1.0
Author-Name: Mika Haapanen 
Author-X-Name-First: Mika 
Author-X-Name-Last: Haapanen 
Author-Name: Hannu Tervo 
Author-X-Name-First: Hannu 
Author-X-Name-Last: Tervo 
Title: Self-employment duration in urban and rural locations 
Abstract:
  Previous research has shown that the local environment is important for
 self-employment. The dynamics of self-employment varies between areas
 characterized by different labour market conditions, entrepreneurial
 traditions and other structural factors. This article analyses
 self-employment spells in Finland with a large register-based data set
 from the period 1987 to 2002. The main aim is to investigate the role of
 region-specific factors as compared with individual-specific and other
 factors on the duration of self-employment spells. First, the descriptive
 analysis shows that the exit rates from self-employment and the length of
 self-employment spells depend upon location (urban versus rural area) and
 the cyclical trends in the economy. Second, self-employment duration is
 modelled using discrete time survival analysis. It is found that rural
 areas have significantly lower exit rates in the first years of
 self-employment than urban areas. 
Journal: Applied Economics 
Pages: 2449-2461 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802360278 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360278 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2449-2461




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Shannon 
Author-X-Name-First: Michael 
Author-X-Name-Last: Shannon 
Title: Canadian lone mother employment rates, policy change and the US welfare reform literature 
Abstract:
  The article examines the rise in Canadian lone mother employment rates
 during the 1990s using data from the Canadian Labour Force Survey and
 methods borrowed from the United States welfare reform literature.
 Patterns of lone mother employment rate increases in Canada are found to
 be similar to those in the United States. Income support policies in both
 countries changed in similar directions and in both cases increased the
 incentive to work. Despite these parallel changes it appears that, unlike
 the United States, policy reforms account for only a small part of the
 rise in Canadian lone mother employment rates. 
Journal: Applied Economics 
Pages: 2463-2481 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802360294 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360294 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2463-2481




Template-Type: ReDIF-Article 1.0
Author-Name: B. Candelon 
Author-X-Name-First: B. 
Author-X-Name-Last: Candelon 
Author-Name: A. Dupuy 
Author-X-Name-First: A. 
Author-X-Name-Last: Dupuy 
Author-Name: L. Gil-Alana 
Author-X-Name-First: L. 
Author-X-Name-Last: Gil-Alana 
Title: The nature of occupational unemployment rates in the United States: hysteresis or structural? 
Abstract:
  This article provides new evidence on the nature of occupational
 differences in unemployment dynamics, which is relevant for the debate
 between the structural or hysteresis hypotheses. We develop a procedure
 that permits us to test for the presence of a structural break at unknown
 date. Our approach allows the investigation of a broader range of
 persistence than the 0/1 paradigm about the order of integration, usually
 implemented for testing the hypothesis of hysteresis in occupational
 unemployment. In almost all occupations, we find support for both the
 structuralist and the hysteresis hypotheses, but stress the importance of
 estimating the degree of persistence of seasonal shocks along with the
 degree of long-run persistence on raw data without applying seasonal
 filters. Indeed hysteresis appears to be underestimated when data are
 initially adjusted using traditional seasonal filters. 
Journal: Applied Economics 
Pages: 2483-2493 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802584950 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584950 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2483-2493




Template-Type: ReDIF-Article 1.0
Author-Name: Andy Chung 
Author-X-Name-First: Andy 
Author-X-Name-Last: Chung 
Title: Gender difference in suicide, household production and unemployment 
Abstract:
  This article aims to explain why men's suicide rate is generally higher
 than women's and why the former tends to fluctuate with unemployment.
 Adopting Hamermesh and Soss's suicide model (1974), with a two-period
 household production model, I argue that (1) the gender gap in suicide
 rate increases with the unemployment rate, because unemployed men suffer a
 larger 'human capital loss', due to the division of labour within their
 household and (2) men's suicide rate is generally higher than women's
 because of the shorter expected life of the former. Both international and
 US evidences support this hypothesis. 
Journal: Applied Economics 
Pages: 2495-2504 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802599446 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599446 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2495-2504




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-hen Chiang 
Author-X-Name-First: Shu-hen 
Author-X-Name-Last: Chiang 
Title: The effects of regional diversity on national unemployment through inter-regional migration: new evidence from Taiwan 
Abstract:
  The relationship between diversity and unemployment has long been an
 important issue for regional scientists. This article applies quarterly
 data for four regions in Taiwan during the 1981-2004 period and the
 empirical results indicate that regional diversity can reduce the national
 unemployment rate, and this is solid support for the hypothesis of
 inter-regional migration. To further evaluate this, the interactions among
 regional unemployment rates are tested using the seemingly unrelated
 regression estimation approach, where the negative correlations of the
 regional residuals show that inter-regional migration is indeed an
 important common factor among regions. An isolated regional labour market
 with the highest unemployment rate in Taiwan re-confirms that
 inter-regional migration plays a critical role in lowering national
 unemployment. In sum, regional diversity can induce migration, which then
 reduces national unemployment. 
Journal: Applied Economics 
Pages: 2505-2511 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701736149 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736149 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2505-2511




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Rute Cardoso 
Author-X-Name-First: Ana Rute 
Author-X-Name-Last: Cardoso 
Author-Name: Priscila Ferreira 
Author-X-Name-First: Priscila 
Author-X-Name-Last: Ferreira 
Title: The dynamics of job creation and destruction for university graduates: why a rising unemployment rate can be misleading 
Abstract:
  A large matched employer-employee data set on the Portuguese economy is
 used to analyse gross job creation and job destruction for university
 graduates, compared to other groups of workers. Standard measures of gross
 job flows are computed, and variance decomposition is used to check
 whether idiosyncratic shocks or aggregate and sectoral shocks can account
 for the time variation in gross job flows, for schooling groups
 separately. Results indicate that the market for university graduates has
 expanded much more than that for undergraduates, and that idiosyncratic
 shocks are more relevant driving job flows for university graduates than
 for nongraduates. No support is therefore found for the pessimistic view
 that states that the expansion of higher education may have gone too far. 
Journal: Applied Economics 
Pages: 2513-2521 
Issue: 19 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802293339 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802293339 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2513-2521




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Ali Kutan 
Author-X-Name-First: Ali 
Author-X-Name-Last: Kutan 
Title: The J-curve in the emerging economies of Eastern Europe 
Abstract:
  Devaluation or depreciation of a currency worsens the trade balance
 before improving it, resulting in a J-curve pattern. A new definition of
 the hypothesis implies a short-run deterioration combined with the
 long-run improvement. By using monthly data over the January 1990-June
 2005 period from 11 east European emerging economies, most of which are
 the new European Union (EU) members or the EU candidate countries, this
 article uses the bounds testing approach to cointegration and
 error-correction modelling and finds empirical support for the J-curve
 hypothesis in three countries of Bulgaria, Croatia and Russia. The results
 have important implications for policymakers involved in economics in
 terms of using exchange rate policy as a policy device to achieve real
 convergence toward EU standards. 
Journal: Applied Economics 
Pages: 2523-2532 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701235696 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701235696 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2523-2532




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Bastida 
Author-X-Name-First: Elena 
Author-X-Name-Last: Bastida 
Author-Name: Gokce Soydemir 
Author-X-Name-First: Gokce 
Author-X-Name-Last: Soydemir 
Title: Obesity and employment as predictors of diabetes in Mexican Americans: findings from a longitudinal study 
Abstract:
  This article examines changes in weight loss and employment on the
 incidence and management of diabetes over an eight-year period. Using data
 from three panel waves of the Border Epidemiologic Study on Aging,
 collected between 1995 and 2003, estimation results from a set of logit
 regression models reveal that obese individuals, who lose weight over an
 eight-year period, are less likely to be diagnosed with diabetes than
 those who remain obese in waves two and three. Moreover, employment, an
 important covariate in all three waves, is associated with the lower
 likelihood of being diagnosed with diabetes. In all, results confirm
 findings from cross-sectional data that point to overweight and obesity as
 important predictors of diabetes and further support public policy efforts
 that aim at controlling the rising incidence of diabetes through tailored
 interventions. 
Journal: Applied Economics 
Pages: 2533-2540 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335629 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335629 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2533-2540




Template-Type: ReDIF-Article 1.0
Author-Name: C. Veeramani 
Author-X-Name-First: C. 
Author-X-Name-Last: Veeramani 
Title: Trade barriers, multinational involvement and intra-industry trade: panel data evidence from India 
Abstract:
  The article analyses the effects of trade barriers and multinationals on
 the intensity of intra-industry trade (IIT) in a panel of Indian
 manufacturing industries from 1988 to 1999. We find that the intensity of
 IIT increases with the reduction of trade barriers. This is expected as
 greater competition from imports leads individual plants in the domestic
 industry to specialize in the manufacturing of unique varieties. The
 analysis suggests that horizontal (market seeking) multinational
 activities in the domestic industries exert a negative influence on IIT.
 This is consistent with the view that horizontal multinationals displace
 exports to the host country. At the same time, our results indicate that
 IIT will be stimulated to the extent that the entry of multinationals
 induces intra-industry specialization. We also analyse the role of product
 differentiation and plant level scale economies in determining IIT. 
Journal: Applied Economics 
Pages: 2541-2553 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701235688 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701235688 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2541-2553




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Growitsch 
Author-X-Name-First: Christian 
Author-X-Name-Last: Growitsch 
Author-Name: Tooraj Jamasb 
Author-X-Name-First: Tooraj 
Author-X-Name-Last: Jamasb 
Author-Name: Michael Pollitt 
Author-X-Name-First: Michael 
Author-X-Name-Last: Pollitt 
Title: Quality of service, efficiency and scale in network industries: an analysis of European electricity distribution 
Abstract:
  Quality of service (QoS) is of major economic significance in natural
 monopoly infrastructure industries. In this article, we present an
 efficiency analysis of electricity distribution networks from seven
 European countries. We apply the stochastic frontier analysis method to
 multi-output translog input distance function models to estimate cost
 efficiency and scale economies. We show that introducing the quality
 dimension into the analysis affects estimated efficiency significantly,
 especially that smaller utilities' efficiency seems to decrease. Our
 results emphasize that QoS should be an integrated part of efficiency and
 economic analysis of regulated natural monopolies. 
Journal: Applied Economics 
Pages: 2555-2570 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701262872 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701262872 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2555-2570




Template-Type: ReDIF-Article 1.0
Author-Name: David Matesanz 
Author-X-Name-First: David 
Author-X-Name-Last: Matesanz 
Author-Name: Guadalupe Fugarolas 
Author-X-Name-First: Guadalupe 
Author-X-Name-Last: Fugarolas 
Title: Exchange rate policy and trade balance: a cointegration analysis of the Argentine experience since 1962 
Abstract:
  Using multivariate cointegration tests for nonstationary data and vector
 error correction models, this article examines the determinants of trade
 balance (TB) for Argentina over the last forty to fifty years taking into
 account that the short-run impacts of currency depreciation on the TB
 behaviour may differ from the long-run effects. Our investigation confirms
 the existence of long-run relationships among TB, real exchange rate (RER)
 and foreign and domestic incomes for Argentina during different RER
 management policies. Based on the estimations, the Marshall-Lerner
 condition is checked and, by means of impulse response functions, we trace
 the effect of a one-time shock to the RER on the TB not finding support
 for a J-curve pattern in the short-run. 
Journal: Applied Economics 
Pages: 2571-2582 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222660 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222660 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2571-2582




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arranz 
Author-X-Name-First: Jose 
Author-X-Name-Last: Arranz 
Author-Name: Ana Gil 
Author-X-Name-First: Ana 
Author-X-Name-Last: Gil 
Title: Traffic accidents, deaths and alcohol consumption 
Abstract:
  The main goal of this article is to analyse the relationship existing
 among prices of alcoholic beverages, alcohol consumption and traffic
 fatalities for the Spanish Autonomous Communities during the time interval
 1998 to 2002. Among the main results, we highlight a positive correlation
 between alcohol consumption and traffic mortality rate. Basically,
 governments implement two kinds of policies to reduce the traffic
 mortality rate. One is oriented to control the supply of alcohol by
 increasing alcohol taxes. The other is oriented to preserve traffic
 security, increasing the number of sanctions for traffic rule infraction.
 We find evidence that both policies exert a positive influence in the
 reduction of traffic fatalities. There is no empirical evidence to
 indicate that being a novice driver increases the tendency to be involved
 in a mortal traffic accident. 
Journal: Applied Economics 
Pages: 2583-2595 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222652 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222652 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2583-2595




Template-Type: ReDIF-Article 1.0
Author-Name: A. Ozlem Onder 
Author-X-Name-First: A. Ozlem 
Author-X-Name-Last: Onder 
Title: The stability of the Turkish Phillips curve and alternative regime shifting models 
Abstract:
  This article, presents empirical evidence supporting instability of the
 Phillips curve in Turkey. We employ the multiple structural break models
 and the Markov-switching models and then evaluate the performance of the
 two models. The data pertain to the monthly inflation rate in Turkey for
 the period of 1987 to 2004. The results show that the Turkish Phillips
 curve is not linear. There exists no evidence on the asymmetry in the
 inflation response to output gap. The persistence of inflation is found to
 be much lower than in linear models. After 2001, slight decline in
 persistence of inflation is observed. There exits weaker support for the
 Phillips curve for the periods where the policymakers attempt to take the
 advantage of the tradeoff between output and inflation relationship. 
Journal: Applied Economics 
Pages: 2597-2604 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222645 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2597-2604




Template-Type: ReDIF-Article 1.0
Author-Name: Kyojik Song 
Author-X-Name-First: Kyojik 
Author-X-Name-Last: Song 
Title: Does debt market timing increase firm value? 
Abstract:
  Survey evidence indicates that firm managers try to time debt markets
 when choosing the maturity of new debt issues, but we do not know whether
 these strategies increase firm value. This research examines differences
 in value across nontimers and timers, where timers are defined as firms
 that follow either a naive strategy of choosing long-term debt when the
 term premium is low or a strategy from Baker et al. (2003) based on the
 predictability of future excess bond returns. After controlling for
 various determinants of firm value, the research finds no differences in
 value across timers and nontimers. It also documents that the timing
 strategies do not increase firm value and do not affect announcement
 effects of long-term debt offerings. The results suggest that corporate
 debt markets are efficient and well integrated with equity markets. 
Journal: Applied Economics 
Pages: 2605-2617 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222629 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222629 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2605-2617




Template-Type: ReDIF-Article 1.0
Author-Name: E. Ulas M&#x131;s&#x131;rl&#x131; 
Author-X-Name-First: E. 
Author-X-Name-Last: Ulas M&#x131;s&#x131;rl&#x131; 
Author-Name: C. Emre Alper 
Author-X-Name-First: C. 
Author-X-Name-Last: Emre Alper 
Title: Drivers of expected returns in Istanbul stock exchange: Fama-French factors and coskewness 
Abstract:
  We investigate the impact of coskewness on the variation of portfolio
 excess returns in Istanbul Stock Exchange (ISE) over the period July 1999
 to December 2005. We form portfolios according to size, industry, size and
 book-to-market ratio, momentum and coskewness and compare alternative
 asset pricing models. The traditional capital asset pricing model (CAPM)
 and the three-factor model of Fama and French are tested in the
 multivariate testing procedure of Gibbons-Ross-Shanken (1989). Coskewness
 is introduced as a fourth factor and its incremental effect over CAPM and
 Fama-French factors is examined both in multivariate tests and in
 cross-sectional regressions. The findings reveal that coskewness is able
 to explain the size premium in ISE. Hence, the basic two-moment CAPM
 without the coskewness factor would underestimate the expected return of
 size portfolios. Multivariate test results indicate that coskewness
 reduces the pricing bias, albeit insignificantly. Cross-sectional analysis
 uncovers that coskewness has a significant additional explanatory power
 over CAPM, especially for size and industry portfolios. However,
 coskewness does not have a significant incremental explanatory power over
 Fama-French factors in ISE. 
Journal: Applied Economics 
Pages: 2619-2633 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222611 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222611 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2619-2633




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Angel Jimenez-Martin 
Author-X-Name-First: Juan Angel 
Author-X-Name-Last: Jimenez-Martin 
Author-Name: Rafael Flores de Frutos 
Author-X-Name-First: Rafael Flores de 
Author-X-Name-Last: Frutos 
Title: Seasonal fluctuations and equilibrium models of exchange rate 
Abstract:
  Most of the evidence on dynamic equilibrium exchange rate models is based
 on seasonally adjusted consumption data. Equilibrium models have not
 worked well in explaining the actual exchange rate. However, the use of
 seasonally adjusted data might be responsible for the spurious rejection
 of the model. This article presents a new equilibrium model for the
 exchange rates that incorporates seasonal preferences. The fit of the
 model to the data is evaluated for five industrialized countries using
 seasonally unadjusted data. Our findings indicate that a model with
 seasonal preferences can generate monthly time series of the exchange rate
 without seasonality even when the variables that theoretically determine
 the exchange rate show clear seasonal behaviours. Further, the model can
 generate theoretical exchange rates with the same order of integration
 than actual exchange rates, and in some cases, with the same stochastic
 trend. 
Journal: Applied Economics 
Pages: 2635-2652 
Issue: 20 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701222603 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222603 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2635-2652




Template-Type: ReDIF-Article 1.0
Author-Name: Kuniyoshi Saito 
Author-X-Name-First: Kuniyoshi 
Author-X-Name-Last: Saito 
Title: Does asymmetric information matter in the early insurance market? Evidence from the auto insurance market 
Abstract:
  In the late 1960s, the performance of automobile insurance declined
 dramatically in Japan in spite of rapid growth in the diffusion rate, and
 the premiums were sharply raised several times in order to improve the
 situation. This observation indicates the possible presence of adverse
 selection (death spiral), and provides an ideal situation for assessing
 informational asymmetry. Using bodily injury liability (BIL) insurance
 data from 46 Japanese prefectures over the period 1966 to 1975, this
 article tests two hypotheses of adverse selection: (i) high-risk drivers
 were more likely to join the BIL insurance market and (ii) sharp premium
 increases drove low-risk policyholders away. Various empirical analyses
 show that there is little evidence for either type of adverse selection.
 We also test whether a risk-misperception hypothesis can explain our
 results, and find some evidence that the population density have a
 significantly positive impact on the demand for BIL insurance. 
Journal: Applied Economics 
Pages: 2653-2666 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335546 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335546 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2653-2666




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel V. Montes Rojas 
Author-X-Name-First: Gabriel V. 
Author-X-Name-Last: Montes Rojas 
Author-Name: Lucas Siga 
Author-X-Name-First: Lucas 
Author-X-Name-Last: Siga 
Title: On the nature of micro-entrepreneurship: evidence from Argentina 
Abstract:
  We analyse the nature of micro-entrepreneurship in Argentina. We focus on
 whether the sector resembles its counterpart in industrialized countries,
 characterized by the risk-taking nature of the entrepreneurial activity,
 or if it is the result of labour market distortions and disguised
 unemployment, as in the dual economy hypothesis. Our results suggest a
 segmentation of the micro-entrepreneur sector. Both young uneducated and
 middle aged highly educated salaried workers have the highest likelihood
 of becoming entrepreneurs. However, the first segment has a high
 probability of becoming own-account workers, while the probability of
 becoming micro-entrepreneurs with employees is strictly increasing in both
 age and education. Moreover, the probability of entrepreneur failure (as
 measured by the transition to the salaried sector) has an inverted U
 shape, implying that both high and low skill individuals are more likely
 to remain entrepreneurs. 
Journal: Applied Economics 
Pages: 2667-2680 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335553 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335553 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2667-2680




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Tabak 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Tabak 
Title: Testing the expectations hypothesis in the Brazilian term structure of interest rates: a cointegration analysis 
Abstract:
  In this article the expectations hypothesis (EH) is tested using
 cointegration techniques, for maturities ranging from 1 to 12 months, for
 the Brazilian market. We found evidence suggesting that, for the period
 1995-2006, the cointegration implication generally seems to hold. We also
 found strong evidence supporting causality from short to long rates and
 also in the opposite direction. Empirical evidence supports the
 expectations theory of the term structure of interest rates. 
Journal: Applied Economics 
Pages: 2681-2689 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335579 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335579 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2681-2689




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Bellak 
Author-X-Name-First: Christian 
Author-X-Name-Last: Bellak 
Author-Name: Markus Leibrecht 
Author-X-Name-First: Markus 
Author-X-Name-Last: Leibrecht 
Title: Do low corporate income tax rates attract FDI? - Evidence from Central- and East European countries 
Abstract:
  Fifty six bilateral country relationships combining 7 home countries from
 the EU and the US, and 8 Central and East European host countries (CEECs)
 of foreign direct investment (FDI) from 1995-2003 are used in a panel
 gravity-model setting to estimate the role of taxation as a determinant of
 FDI. While gravity variables explain most of the variation of FDI inflows,
 the bilateral effective average tax rate (beatr) is roughly equally
 important to other cost-related factors. The semi-elasticity of FDI with
 respect to taxes is about -4.3. This value is above those of earlier
 studies in absolute terms and can partly be attributed to using the beatr
 instead of the statutory tax rate. Our results indicate that tax-lowering
 strategies of CEEC governments seem to have an important impact on foreign
 firms location decisions. 
Journal: Applied Economics 
Pages: 2691-2703 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701320217 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701320217 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2691-2703




Template-Type: ReDIF-Article 1.0
Author-Name: Suchin Virabhak 
Author-X-Name-First: Suchin 
Author-X-Name-Last: Virabhak 
Author-Name: Wook Sohn 
Author-X-Name-First: Wook 
Author-X-Name-Last: Sohn 
Title: The impact of Medicaid's preferred drug lists on physicians' prescribing behaviour 
Abstract:
  This article examines Medicaid preferred drug lists (PDLs), a
 cost-containment tool that designates specific drugs for use by Medicaid
 beneficiaries. We develop an empirical model to measure the direct and
 spillover effects of Medicaid PDL across Medicaid, cash and third-party
 payer markets; and apply product level panel data to the cardiovascular
 market in Illinois and Louisiana. We find a significant decrease in
 post-PDL Medicaid prescription shares of drugs excluded from the PDL.
 Spillovers onto third parties and the cash market are also statistically
 significant. Moreover, a more restrictive prior authorization procedure
 has a greater impact on prescription shares. There is evidence of gradual
 adjustment in prescription shares. Lastly, the impact of PDLs is stronger
 among physicians with a higher share of Medicaid prescriptions. 
Journal: Applied Economics 
Pages: 2705-2725 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701320209 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701320209 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2705-2725




Template-Type: ReDIF-Article 1.0
Author-Name: Chang-Chiang Chin 
Author-X-Name-First: Chang-Chiang 
Author-X-Name-Last: Chin 
Author-Name: Huei-Mei Liang 
Author-X-Name-First: Huei-Mei 
Author-X-Name-Last: Liang 
Title: The long-run uncovered interest rate parity in view of a trading strategy 
Abstract:
  Uncovered Interest Rate Parity (UIP) states that bonds in different
 denomination should produce the same returns if the maturities of the
 bonds are the same. Given this, if a foreign bond produces a lower holding
 period return than a home bond of the same maturity, for their remaining
 lives the same foreign bond ought to produce a return higher than the home
 bond. A test is designed according to this relationship. With 1 to 6 year
 interest rate data of U.S., Britain and Germany from 1979 to 2005, our
 test shows that this relationship is more reliable for 6-year interest
 rates than the shorter rates in general. This result lends support to the
 long-run UIP. A trading strategy is developed by utilizing this idea. We
 show that positive returns can be achieved by the strategy for bonds of
 longer horizons. This result also serves as indirect evidence of the
 long-run UIP. 
Journal: Applied Economics 
Pages: 2727-2739 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701320225 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701320225 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2727-2739




Template-Type: ReDIF-Article 1.0
Author-Name: Salih Katircioglu 
Author-X-Name-First: Salih 
Author-X-Name-Last: Katircioglu 
Title: Tourism, trade and growth: the case of Cyprus 
Abstract:
  Although the relationship between international trade and economic growth
 has found a wide application area in the literature over the years, this
 can not be said about tourism and growth or trade and tourism. This study
 employs the bounds test for cointegration and Granger causality tests to
 investigate a long-run equilibrium relationship between tourism, trade and
 real income growth, and the direction of causality among themselves for
 Cyprus. Results reveal that tourism, trade and real income growth are
 cointegrated; thus, a long-run equilibrium relationship can be inferred
 between these three variables. On the other hand, Granger causality test
 results suggest that real income growth stimulates growth in international
 trade (both exports and imports) and international tourist arrivals to the
 island. Furthermore, growth in international trade (both exports and
 imports) also stimulates an increase in international tourist arrivals to
 Cyprus. And finally, real import growth stimulate growth in real exports
 in the case of Cyprus. 
Journal: Applied Economics 
Pages: 2741-2750 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335512 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335512 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2741-2750




Template-Type: ReDIF-Article 1.0
Author-Name: Zhongmin Wu 
Author-X-Name-First: Zhongmin 
Author-X-Name-Last: Wu 
Author-Name: Mark Baimbridge 
Author-X-Name-First: Mark 
Author-X-Name-Last: Baimbridge 
Author-Name: Yu Zhu 
Author-X-Name-First: Yu 
Author-X-Name-Last: Zhu 
Title: Multiple job holding in the United Kingdom: evidence from the British Household Panel Survey 
Abstract:
  This article examines the determinants of multiple job holding in the UK.
 We address these issues using data from the first 11 waves of the British
 Household Panel Survey (BHPS), which covered the period from 1991 to 2001.
 Evidence from the BHPS does not support the hypotheses of main job hours
 constrained and main job insecurity. We argue that the incentive for
 moonlighting in the UK is due to financial pressures and the desire for
 heterogeneous jobs. The empirical work is carried out separately for men
 and women. 
Journal: Applied Economics 
Pages: 2751-2766 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335520 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335520 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2751-2766




Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Razack 
Author-X-Name-First: Abdul 
Author-X-Name-Last: Razack 
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: David Holland 
Author-X-Name-First: David 
Author-X-Name-Last: Holland 
Title: A general equilibrium analysis of production subsidy in a Harris-Todaro developing economy: an application to India 
Abstract:
  Since 1950s India has advocated import substituting industrialization
 policies to promote its manufacturing sector. The end result was creation
 of a dual economy: highly favored manufacturing sector with high and rigid
 wages and neglected agricultural sector with low wages and poverty.
 Because of the higher wages in the manufacturing sector, the rural
 laborers migrate to the urban sector, a typical characteristic of the
 Harris-Todaro developing economy. Realizing this crisis, the Indian
 government recently initiated policies to boost agricultural production to
 curb the labor migration and improve the welfare of the rural population.
 In this study, we develop a computable general equilibrium (CGE) model for
 India by incorporating Harris-Todaro economic characteristics of
 unemployment, labor migration, farm dependant population, and
 labor-intensive agriculture. We use the model to analyze the effects of
 agricultural production subsidy policies on employment, factor price,
 output price, output levels, and welfare in agricultural and manufacturing
 sectors. Our findings show that agricultural production subsidy increases
 agricultural production, reduces unemployment, raises the wage rate in the
 agriculture sector, augments the consumption among the rural and urban
 households, and increases the rental rate for capital in agricultural
 sector. 
Journal: Applied Economics 
Pages: 2767-2777 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335561 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2767-2777




Template-Type: ReDIF-Article 1.0
Author-Name: Vani Borooah 
Author-X-Name-First: Vani 
Author-X-Name-Last: Borooah 
Author-Name: John Mangan 
Author-X-Name-First: John 
Author-X-Name-Last: Mangan 
Title: Home is where the hurt is: an econometric analysis of injuries caused by spousal assault 
Abstract:
  Using data on injuries presenting at the emergency departments of
 participating hospitals in the Australian state of Queensland we examine
 the nature of injuries resulting from spousal assault and compare them to
 injuries from nonspousal assault and accidental injuries. We ask: who are
 the persons most vulnerable to spousal assault?, Are spousal assault
 injuries more (or less) severe than injuries from nonspousal assault and
 accidental injuries? Do the recorded figures for assault injuries on women
 understate the true number of assault injuries, and if so, by how much?
 'But for my bonny Kate, she must with me. I will be master of what is mine
 own. She is my goods, my chattels' (Taming of the Shrew). 
Journal: Applied Economics 
Pages: 2779-2787 
Issue: 21 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335637 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335637 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2779-2787




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of transport: introduction and overview 
Abstract:
  We provide an introduction and overview to the nine applied studies
 making up this special theme on transport. The studies cover a wide range
 of national and regional experience and employ a variety of applied
 techniques. 
Journal: Applied Economics 
Pages: 2789-2791 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840903283379 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903283379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2789-2791




Template-Type: ReDIF-Article 1.0
Author-Name: Sigbj&#xf8;rn S&#xf8;dal 
Author-X-Name-First: Sigbj&#xf8;rn 
Author-X-Name-Last: S&#xf8;dal 
Author-Name: Steen Koekebakker 
Author-X-Name-First: Steen 
Author-X-Name-Last: Koekebakker 
Author-Name: Roar Adland 
Author-X-Name-First: Roar 
Author-X-Name-Last: Adland 
Title: Value based trading of real assets in shipping under stochastic freight rates 
Abstract:
  The article uses a real options valuation model with stochastic freight
 rates to investigate market efficiency and the economics of switching
 between the dry bulk and the tanker markets in international shipping. A
 dry bulk carrier is replaced with a tanker when the expected net present
 value of such a switch is optimal from a real options based decision rule.
 Depending on the development of the markets a reversal may take place
 later. The cost and demand parameters upon which the decisions to switch
 are made, including the stochastic characteristics of freight rates, are
 estimated from an empirical analysis that is updated every week throughout
 a 12-year time period from 1993 to 2005. The second-hand market for bulk
 ships seems to have been efficient most of these years in the sense that
 market switching usually did not pay off, with one major exception: it
 seemed profitable in expectation to leave the dry bulk market and enter
 the tanker market over a significant period of time shortly after the
 millennium shift, and to return to the dry bulk market about three years
 later. These points in time corresponded with an unprecedented boom period
 in the tanker and dry bulk freight markets, respectively, and the result
 suggest that agents in the second-hand market were slow to adjust their
 expectations. In retrospect, such an investment policy also happened to be
 profitable compared to staying put in the tanker market, even after
 accounting for transaction costs. 
Journal: Applied Economics 
Pages: 2793-2807 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701720853 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720853 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2793-2807




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Schulze 
Author-X-Name-First: Peter 
Author-X-Name-Last: Schulze 
Author-Name: Alexander Prinz 
Author-X-Name-First: Alexander 
Author-X-Name-Last: Prinz 
Title: Forecasting container transshipment in Germany 
Abstract:
  In this article, we examine container transshipment at German ports using
 the Seasonal Auto-Regressive Integrated Moving Average (SARIMA) model and
 the Holt-Winters exponential smoothing approach. Our models are designed
 especially to take account of the seasonal behaviour of the quarterly data
 used. We consider the dynamic development in this sector for the whole
 container throughput and also the destinations Asia, Europe and North
 America, which are the world's three main economic regions. Our data runs
 from the first quarter of 1989 to the fourth quarter of 2006. We provide
 detailed quarterly forecasts for the years 2007 and 2008. According to
 forecasting error measures such as mean square error and Theil's U, the
 SARIMA-approach yields slightly better values of modelling the container
 throughput than the exponential smoothing approach. Our forecast results
 indicate further strong growth for German container handling in total and
 especially for the destinations Asia and Europe. Only the container
 transshipment between Germany and North America shows rather small
 increases up to the end of 2008. 
Journal: Applied Economics 
Pages: 2809-2815 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802260932 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260932 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2809-2815




Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Hsiu Laih 
Author-X-Name-First: Chen-Hsiu 
Author-X-Name-Last: Laih 
Author-Name: Kuan-Yu Chen 
Author-X-Name-First: Kuan-Yu 
Author-X-Name-Last: Chen 
Title: Economics on the optimal port queuing pricing to bulk ships 
Abstract:
  This article develops the optimal single step toll scheme which is levied
 to bulk ships for a queuing port. Bulk ships' arrival times at the port
 will be rationally dispersed after pricing this toll scheme. Consequently,
 the queuing time at the anchorage to all bulk ships will be rationally
 decreased. This article shows bulk ships' equilibrium arrival rate
 distributions during the queuing period before and after establishing the
 optimal single step toll scheme. This article also shows bulk ship owners'
 decisions of arrival time adjustments under the optimal single step toll
 scheme. Based on these results, we find some bulk ships that paid no toll
 under the optimal single step toll scheme to maintain the same arrival
 times at the anchorage as they did in the original nontoll equilibrium
 situation. New arrival times at the anchorage for other bulk ships that
 paid the toll are postponed when compared with their original arrival
 times in the nontoll equilibrium situation. 
Journal: Applied Economics 
Pages: 2817-2825 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701736156 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736156 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2817-2825




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Couto 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Couto 
Author-Name: Daniel Graham 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Graham 
Title: The determinants of efficiency and productivity in European railways 
Abstract:
  This article evaluates the economic performance of European railways over
 the period 1972 to 1999. The cost structure of the railway industry is
 analysed using a stochastic frontier approach estimated within the
 framework of a translog cost system. The results confirm that European
 railways experience significant cost increases due to inefficient
 behaviour. In contrast to previous studies, however, the estimates
 indicate a much greater role for allocative rather than technical
 inefficiency. Overall, inefficiencies can essentially be explained by the
 supply of excess capacity and by the over-employment of labour inputs.
 Regarding productivity, it appears to be technological progress, and not
 levels of efficiency or scale economies, that provide the most convincing
 explanation for variance in growth rates within the sample. 
Journal: Applied Economics 
Pages: 2827-2851 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840801949782 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801949782 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2827-2851




Template-Type: ReDIF-Article 1.0
Author-Name: Germa Bel 
Author-X-Name-First: Germa 
Author-X-Name-Last: Bel 
Author-Name: Xavier Fageda 
Author-X-Name-First: Xavier 
Author-X-Name-Last: Fageda 
Title: Preventing competition because of 'solidarity': rhetoric and reality of airport investments in Spain 
Abstract:
  From a public interest perspective, there could be a justification for
 constraining market mechanisms with the aim of progressive redistribution.
 However, some policies might be based on selfish motivations of government
 agents. In this article, we empirically contrast if the infrastructure
 policy is based only on public interest motivations or if it is also based
 on the private motivations of policy makers. In this way, Spain
 infrastructure policy provides a useful policymaking field to test
 hypothesis about the behaviour of policy makers. We find some evidence
 regarding the strength of political motivations in explaining such
 behaviour. In fact, results from our analysis show that political
 motivations can eventually play a more relevant role than social welfare
 maximization. 
Journal: Applied Economics 
Pages: 2853-2865 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701522846 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522846 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2853-2865




Template-Type: ReDIF-Article 1.0
Author-Name: Winand Emons 
Author-X-Name-First: Winand 
Author-X-Name-Last: Emons 
Author-Name: George Sheldon 
Author-X-Name-First: George 
Author-X-Name-Last: Sheldon 
Title: The market for used cars: new evidence of the lemons phenomenon 
Abstract:
  The lemons model assumes that owners of used cars have an information
 advantage over potential buyers with respect to the quality of their
 vehicles. Owners of bad cars try to sell them to ill-informed buyers while
 owners of good cars hold on to theirs. Consequently, the quality of traded
 automobiles tends to be sub-average. In contrast to previous empirical
 work, the following article investigates the behaviour of both buyers and
 sellers, testing for adverse selection by sellers and for quality
 uncertainty among buyers with a sample consisting of all 1985 cars
 registered in the Swiss canton of Basle City over the period 1985 to 1991.
 Our data supports both adverse selection and buyer uncertainty, suggesting
 that a lemons problem exists. 
Journal: Applied Economics 
Pages: 2867-2885 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802277332 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802277332 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2867-2885




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Matas 
Author-X-Name-First: Anna 
Author-X-Name-Last: Matas 
Author-Name: Josep-Lluis Raymond 
Author-X-Name-First: Josep-Lluis 
Author-X-Name-Last: Raymond 
Title: Hedonic prices for cars: an application to the Spanish car market, 1981-2005 
Abstract:
  In this article we provide a comparison of different formulations for
 hedonic regression analysis in order to construct a quality adjusted price
 index for the Spanish car market over the period 1981 to 2005.
 Specifically, we address the issue of instability of coefficients over
 time, and propose two alternative estimation procedures based, firstly, on
 a moving sample of observations and, secondly, on a moving average of
 estimated coefficients in single period equations. The statistical tests
 applied support the proposed methodologies. On empirical grounds two
 conclusions can be emphasized. Firstly, our study concludes that, taking
 quality changes into account, car prices in Spain deflated by consumer
 price index (CPI) declined by 40% between 1981 and 2005. This result is
 robust to the alternative estimation procedures employed in the study.
 Secondly, an analysis of &#x3c3;-convergence shows that for quality
 adjusted prices a clear trend in &#x3c3;-convergence emerges between 1986
 and 1992, whereas such a trend does not exists for observed prices. This
 result has to be related to Spain's integration into the European
 Community (EC). 
Journal: Applied Economics 
Pages: 2887-2904 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701720945 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720945 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2887-2904




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Loeb 
Author-X-Name-First: Peter 
Author-X-Name-Last: Loeb 
Author-Name: William Clarke 
Author-X-Name-First: William 
Author-X-Name-Last: Clarke 
Author-Name: Richard Anderson 
Author-X-Name-First: Richard 
Author-X-Name-Last: Anderson 
Title: The impact of cell phones on motor vehicle fatalities 
Abstract:
  This article develops a set of models for the determinants of automobile
 fatalities with particular attention devoted to the effects of increased
 cell phone usage. Cell phones have been associated with both life taking
 and life-saving properties. However, prior statistical evaluations of the
 effects of cell phones have led to fragile results. We develop in this
 article econometric models using time-series data, allowing for polynomial
 structures of the regressors. The models are evaluated with a set of
 specification error tests providing reliable estimates of the effects of
 the various policy and driving-related variables evaluated. The
 statistical results indicate the effect of cell phones is nonmonotonic
 depending on the volume of phones in use, first having a net life-taking
 effect, then a net life-saving effect, followed finally with a net
 life-taking effect as the volume of phone use increases. 
Journal: Applied Economics 
Pages: 2905-2914 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701858133 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858133 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2905-2914




Template-Type: ReDIF-Article 1.0
Author-Name: Junyi Shen 
Author-X-Name-First: Junyi 
Author-X-Name-Last: Shen 
Title: Latent class model or mixed logit model? A comparison by transport mode choice data 
Abstract:
  This article applies two recently stated choice survey datasets of Japan
 to investigate the difference between the Latent Class Model (LCM) and the
 Mixed Logit Model (MLM) for transport mode choice. A detailed comparison
 is carried out, focusing on comparing values of time savings, direct
 choice elasticities, predicted choice probabilities and prediction success
 indices. Furthermore, a test on nonnested model is also utilized to help
 determine which model is superior to another one. The results suggest that
 the LCM performs better than the MLM in both datasets. 
Journal: Applied Economics 
Pages: 2915-2924 
Issue: 22 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840801964633 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964633 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2915-2924




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Stijns 
Author-X-Name-First: Jean-Philippe 
Author-X-Name-Last: Stijns 
Title: Mineral wealth and human capital accumulation: a nonparametric approach 
Abstract:
  This article uses a nonparametric approach to investigate the nexus
 between mineral wealth and human capital accumulation across countries.
 Higher mineral wealth is associated with elevated levels of human capital
 in a cross-section of countries. Matching the overall level of economic
 development and political instability and violence, weakens but does not
 reverse this conclusion. These results are economically significant.
 Moving up from the bottom to the top quartile for subsoil wealth per
 capita decreases illiteracy by &#x2248; 12% among young and adult females.
 Conversely, moving down from the top to the bottom quartile for subsoil
 wealth per capita decreases the average years of primary and total
 education by &#x2248; 1.5 years for females. Results are consistent with
 Hirschman's conjecture that enclave economies have weaker production
 linkages but stronger government revenue linkages than other activities.
 Most importantly, this article argues that caution should be exercised
 when discouraging countries from exploiting their mineral wealth,
 especially for countries where human capital is scarce. I know, [there is]
 no safe depositary of the ultimate powers of society, but the people
 themselves; and if we think them not enlightened enough to exercise their
 control with wholesome discretion, the remedy is not to take it from them,
 but to inform their discretion by education. This is the true corrective
 of abuses of constitutional power. Letter from Thomas Jefferson to William
 C. Jarvis, 1820, The Writings of Thomas Jefferson, Memorial Edition
 (Lipscomb and Bergh, eds), Vol. 15, Washington, D.C., 1903-1904, p. 278. 
Journal: Applied Economics 
Pages: 2925-2941 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840601166900 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601166900 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2925-2941




Template-Type: ReDIF-Article 1.0
Author-Name: J. C. Dumagan 
Author-X-Name-First: J. C. 
Author-X-Name-Last: Dumagan 
Author-Name: V. E. Ball 
Author-X-Name-First: V. E. 
Author-X-Name-Last: Ball 
Title: Decomposing growth in revenues and costs into price, quantity and total factor productivity contributions 
Abstract:
  This article employs the superlative Fisher and Tornqvist indexes for
 exact decomposition of growth in nominal revenues and costs. The findings
 confirm the well-known result that these indexes very closely approximate
 each other, implying that the mathematically simpler and computationally
 easier Tornqvist is the more practicable index. Moreover, this article's
 nominal growth decomposition yields all the results from the more common
 real growth decomposition and is also more informative for policy
 purposes. Application to the US agricultural sector during 1948-2001 shows
 that of the 3.31% average annual growth in revenues, TFP growth
 contributed 1.90 percentage points (pct. pts.); growth in output prices
 added 1.43 pct. pts.; while growth in input quantities contributed - 0.02
 pct. pts. (i.e. fewer inputs). Therefore, real output growth (or revenue
 growth less output price growth) was 1.88 pct. pts., revealing that TFP's
 1.90 pct. pts. growth contribution was fully responsible for real output
 growth with fewer inputs. Since revenues measure incomes, these results
 suggest that policy should focus more on measures to foster TFP growth
 than on specific price or quantity instruments to enhance income growth. 
Journal: Applied Economics 
Pages: 2943-2953 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367549 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367549 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2943-2953




Template-Type: ReDIF-Article 1.0
Author-Name: David Penn 
Author-X-Name-First: David 
Author-X-Name-Last: Penn 
Title: Financial well-being in an urban area: an application of multiple imputation 
Abstract:
  This article estimates a model of self-reported financial well-being
 (FWB) using primary data collected for a Southwestern U.S. city. Missing
 data are estimated using multiple imputation. Model estimates show how FWB
 depends on home ownership, the number of children, health insurance, age,
 and income. Multiple imputation results differ somewhat from complete case
 results. 
Journal: Applied Economics 
Pages: 2955-2964 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367507 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367507 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2955-2964




Template-Type: ReDIF-Article 1.0
Author-Name: Mahmood Arai 
Author-X-Name-First: Mahmood 
Author-X-Name-Last: Arai 
Author-Name: Fredrik Heyman 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Heyman 
Title: Microdata evidence on rent-sharing 
Abstract:
  We examine the effect of firm profits on wages for individual workers
 while focusing on the empirical complications associated with estimating
 the extent of rent-sharing. Controlling for worker and firm fixed-effects
 and using several instruments to deal with the endogeneity of profits, we
 report results indicating that Ordinary Least Square (OLS)-estimates
 strongly underestimate the effects of profits on wages. Moreover, the
 effect of profits on wages are estimated separately for firms with
 increasing and decreasing profits within a given time period. We find a
 positive and stable effect only in firms with increasing profits. This is
 in line with the idea that falling profits do not lead to wage cuts while
 increasing profits imply higher wages. 
Journal: Applied Economics 
Pages: 2965-2976 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701721620 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721620 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2965-2976




Template-Type: ReDIF-Article 1.0
Author-Name: Susana Alonso-Bonis 
Author-X-Name-First: Susana 
Author-X-Name-Last: Alonso-Bonis 
Author-Name: Valentin Azofra-Palenzuela 
Author-X-Name-First: Valentin 
Author-X-Name-Last: Azofra-Palenzuela 
Author-Name: Gabriel de la Fuente-Herrero 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: de la Fuente-Herrero 
Title: Real option value and random jumps: application of a simulation model 
Abstract:
  This article studies how sensitive real option valuations are to
 incorrect assumptions about the stochastic process followed by the state
 variables. We design a valuation model which combines Monte Carlo
 simulation and dynamic programming and provides an appropriate framework
 to evaluate the effect of estimation errors on both the value of real
 options and their critical frontier. Although the model is flexible enough
 to value American-type options contingent on a wide range of stochastic
 processes, we focus on the analysis of the effect of stochastic jumps. We
 apply our model to the valuation of an investment in the car parts
 industry documented in previous literature. Our results clearly show that
 underestimating this type of jumps might lead to substantial misjudgements
 in a firm's decision-making processes. For instance, it may lead to
 profitable projects being rejected when jump diffusion is low, or negative
 expanded net present value projects being accepted. 
Journal: Applied Economics 
Pages: 2977-2989 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335603 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335603 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2977-2989




Template-Type: ReDIF-Article 1.0
Author-Name: M. Teresa Balaguer-Coll 
Author-X-Name-First: M. 
Author-X-Name-Last: Teresa Balaguer-Coll 
Author-Name: Diego Prior 
Author-X-Name-First: Diego 
Author-X-Name-Last: Prior 
Title: Short- and long-term evaluation of efficiency and quality. An application to Spanish municipalities 
Abstract:
  This article analyses efficiency and quality levels in Spanish local
 governments and their determining factors through the application of the
 Data Envelopment Analysis methodology. It aims to discover to what extent
 inefficiency arises from both quality considerations and external factors
 beyond the organization's control, or alternatively, how much inefficiency
 is due to inadequate resource management. As a component of inadequate
 resource management, we test the existence of political-budgetary cycles
 in the temporal evolution of inefficiencies. The results show that on the
 whole there is still a wide margin within which local government
 efficiency and quality levels could be increased, although it is revealed
 that a great deal of inefficiency is due to exogenous or noncontrollable
 factors. In particular, it has been found that the size of the
 municipality, the per capita tax revenue, the per capita grants and the
 amount of commercial activity are some of the factors related with local
 government efficiency. 
Journal: Applied Economics 
Pages: 2991-3002 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701351923 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701351923 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2991-3002




Template-Type: ReDIF-Article 1.0
Author-Name: Camilla Mastromarco 
Author-X-Name-First: Camilla 
Author-X-Name-Last: Mastromarco 
Author-Name: Marco Runkel 
Author-X-Name-First: Marco 
Author-X-Name-Last: Runkel 
Title: Rule changes and competitive balance in Formula One motor racing 
Abstract:
  This article provides an economic explanation of the frequent rule
 changes in the Formula One (F1) motor racing series. In a two-stage model,
 the FIA (the organizer of the F1) first decides whether to change the
 rules or not, and then the racing teams compete in a contest. It turns out
 that a rule change reduces the teams' performances, but also improves
 competitive balance between the teams. The rule change is implemented, if
 the FIA's revenue gain from the latter effect overcompensates the FIA's
 revenue loss from the former effect. We provide empirical evidence from F1
 seasons in the period 1950 to 2005, which supports the main implications
 of the model. 
Journal: Applied Economics 
Pages: 3003-3014 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701349182 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701349182 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:3003-3014




Template-Type: ReDIF-Article 1.0
Author-Name: Minkyoung Kim 
Author-X-Name-First: Minkyoung 
Author-X-Name-Last: Kim 
Author-Name: Philip Garcia 
Author-X-Name-First: Philip 
Author-X-Name-Last: Garcia 
Author-Name: Raymond Leuthold 
Author-X-Name-First: Raymond 
Author-X-Name-Last: Leuthold 
Title: Managing price risks using and local polynomial kernel forecasts 
Abstract:
  This study contributes to understanding price risk management through
 hedging strategies in a forecasting context. A relatively new forecasting
 method, nonparametric local polynomial kernel (LPK), is used to forecast
 prices and to generate ex ante hedge ratios. The selective multiproduct
 hedge based on the LPK price and hedge ratio forecasts is in general found
 to be better than continuous hedging, no hedging and alternative
 forecasting procedures. Selective multivariate hedging using the LPK is
 found to improve hog producer's expected returns. The findings indicate
 that combining hedging with forecasts, especially when using the LPK
 procedure, can improve price risk management. 
Journal: Applied Economics 
Pages: 3015-3026 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701351915 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701351915 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:3015-3026




Template-Type: ReDIF-Article 1.0
Author-Name: Diego Romero-Avila 
Author-X-Name-First: Diego 
Author-X-Name-Last: Romero-Avila 
Title: Productive physical investment and growth: testing the validity of the AK model from a panel perspective 
Abstract:
  In this article, we analyse the relationship between productive physical
 investment and economic growth from a panel perspective for a sample of 61
 countries spanning the period 1950 to 1992. The analysis can be thought of
 as two-fold. First, we test the empirical validity of AK models following
 the logic by Jones (1995). For that purpose, we determine the degree of
 persistence of physical investment rates and growth by employing recently
 developed panel unit-root tests that enable us to make more reliable
 inferences about the existence of stochastic trends in the series. Second,
 we estimate the long-run effect of physical investment on growth by using
 panel data techniques rather than cross-section regressions. Overall, our
 findings cast doubts on the rejection of the empirical validity of the AK
 model, as suggested by Jones' analysis. 
Journal: Applied Economics 
Pages: 3027-3043 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335611 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335611 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:3027-3043




Template-Type: ReDIF-Article 1.0
Author-Name: Pilsun Choi 
Author-X-Name-First: Pilsun 
Author-X-Name-Last: Choi 
Author-Name: Insik Min 
Author-X-Name-First: Insik 
Author-X-Name-Last: Min 
Title: Estimating endogenous switching regression model with a flexible parametric distribution function: application to Korean housing demand 
Abstract:
  This study introduces Johnson's SU-normal distribution which can
 accommodate the flexibility of true error distribution to obtain
 consistent estimates in an endogenous switching regression model.
 Simulation results indicate that the SU-normal model outperforms the
 normal model for the consistency of estimators when the error distribution
 is nonnormal. Korean housing demand model estimated by the SU-normal model
 also outperforms the normal model in terms of parameter estimates and
 graphical predictions. 
Journal: Applied Economics 
Pages: 3045-3055 
Issue: 23 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701335595 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335595 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:3045-3055




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Ali Kutan 
Author-X-Name-First: Ali 
Author-X-Name-Last: Kutan 
Author-Name: Su Zhou 
Author-X-Name-First: Su 
Author-X-Name-Last: Zhou 
Title: Towards solving the PPP puzzle: evidence from 113 countries 
Abstract:
  Several different approaches have been followed by researchers to test
 the validity of Purchasing Power Parity (PPP). Since the introduction of
 the unit-root tests, researchers have applied a battery of these tests to
 determine whether the real exchange rates are stationary. If the answer is
 in the affirmative, PPP is validated. While application of the standard
 augmented Dickey-Fuller test has not provided much support for PPP, a test
 that incorporates nonlinearity in the rates has. Under both tests,
 however, the null of nonstationary is tested against the alternative of
 stationarity. In this article, when we switch the null with the
 alternative and apply Kwiatkowski et al. (1992) test, we provide
 relatively more support for the theory, getting closer and closer towards
 solving the PPP puzzle. 
Journal: Applied Economics 
Pages: 3057-3066 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367648 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367648 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3057-3066




Template-Type: ReDIF-Article 1.0
Author-Name: Robert-Paul Berben 
Author-X-Name-First: Robert-Paul 
Author-X-Name-Last: Berben 
Author-Name: W. Jos Jansen 
Author-X-Name-First: W. 
Author-X-Name-Last: Jos Jansen 
Title: Bond market and stock market integration in Europe: a smooth transition approach 
Abstract:
  This article investigates whether there has been a structural increase in
 financial market integration in nine European countries and the US in the
 period 1980 to 2003. We employ a GARCH model with a smoothly time-varying
 correlation to estimate the date of change and the speed of the transition
 between the low and high correlation regimes. Our test produces strong
 evidence of greater comovement across the board for both stock markets and
 government bond markets. Dates of change and speeds of adjustment vary
 widely across country linkages. Stock market integration is a more gradual
 process than bond market integration. The impact of European monetary
 union (EMU) is rather limited, as it has mainly affected the timing of
 bond market correlation gains (but hardly their size) and has had little
 discernible effect on stock market integration. 
Journal: Applied Economics 
Pages: 3067-3080 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367572 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367572 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3067-3080




Template-Type: ReDIF-Article 1.0
Author-Name: Roderick Rejesus 
Author-X-Name-First: Roderick 
Author-X-Name-Last: Rejesus 
Author-Name: Bruce Sherrick 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Sherrick 
Author-Name: Gary Schnitkey 
Author-X-Name-First: Gary 
Author-X-Name-Last: Schnitkey 
Author-Name: Cesar Escalante 
Author-X-Name-First: Cesar 
Author-X-Name-Last: Escalante 
Title: Factors influencing producers' perceptions about the importance of government support programmes in agriculture: application of a semi-parametric ordered response model 
Abstract:
  This article examines factors affecting producers' perceptions towards
 the relative importance of government support programmes in agriculture.
 Specific attention is placed on determining the effect of crop insurance
 usage on farmers' views about the importance of government programme
 payments. Results from a semi-parametric ordered response model shows that
 producers who use yield- or revenue-based crop insurance products also
 tend to view government programmes with higher importance, suggesting that
 crop insurance and direct government support programmes tend to be
 complements rather than substitutes. 
Journal: Applied Economics 
Pages: 3081-3092 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367580 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3081-3092




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Elbers 
Author-X-Name-First: Chris 
Author-X-Name-Last: Elbers 
Author-Name: Jan Willem Gunning 
Author-X-Name-First: Jan Willem 
Author-X-Name-Last: Gunning 
Author-Name: Lei Pan 
Author-X-Name-First: Lei 
Author-X-Name-Last: Pan 
Title: Insurance and rural welfare: what can panel data tell us? 
Abstract:
  Assessing the scope for insurance in rural communities usually requires a
 structural model of household behaviour under risk. One of the few
 empirical applications of such models is the study by Rosenzweig and
 Wolpin (1993) who conclude that Indian farmers in the ICRISAT villages
 would not benefit from the introduction of formal weather insurance. In
 this article we investigate how models such as theirs can be estimated
 from panel data on production and assets. We show that if assets can take
 only a limited number of values the coefficients of the model cannot be
 estimated with reasonable precision. We also show that this can affect the
 conclusion that insurance would not be welfare improving. 
Journal: Applied Economics 
Pages: 3093-3101 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367614 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367614 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3093-3101




Template-Type: ReDIF-Article 1.0
Author-Name: Tatsushi Oka 
Author-X-Name-First: Tatsushi 
Author-X-Name-Last: Oka 
Title: Juvenile crime and punishment: evidence from Japan 
Abstract:
  Over the last decade, juvenile crime has become a serious social problem
 in Japan. The Juvenile Law was revised in 2001 to impose harsher
 punishment on juvenile offenders. This revision makes it possible to
 impose criminal punishment on 14- and 15-year-old criminal offenders,
 while those offenders aged 16-19 have always faced criminal punishment,
 both before and after the revision. Using this revision as a natural
 experiment, this study conducts a difference-in-differences estimation to
 examine the effect of punishment on juvenile crime. The analysis provides
 evidence that punishment can deter juvenile crime. In addition, this
 research examines the criminal behaviour of 13-year-olds, who face no
 change in punishment, but who soon will in the near future. The results
 suggest that the revision also had a negative impact on the criminal
 behaviour of these younger offenders. 
Journal: Applied Economics 
Pages: 3103-3115 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701365923 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701365923 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3103-3115




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Bodman 
Author-X-Name-First: Philip 
Author-X-Name-Last: Bodman 
Title: Output volatility in Australia 
Abstract:
  A number of papers have documented a significant decline in real GDP
 volatility in several major OECD economies. Some authors have presented
 evidence to suggest that this is the outcome of a one-off structural break
 from a high to low volatility state whilst others have estimated regime
 switching models that indicate low volatility regime states have dominated
 in recent years. This article provides further evidence on the general
 properties of output volatility for Australia, including evidence of a
 significant moderation in output volatility for the country that occurred
 in the early 1980s. Estimates of various GARCH models of real GDP growth
 are also provided to further examine shorter term volatility features of
 the Australian economy that are associated with its business-cycle. A
 regime shift dummy is maintained in all models of the conditional variance
 in order to account for the regime shift in volatility and evidence is
 found of significant business-cycle effects, including leverage effects
 and asymmetries that suggest recessions are times of higher output
 volatility than economic expansions. Overall, it is concluded that the
 so-called 'Great Moderation' in macroeconomic instability, as documented
 here for Australia, is a result of a myriad of economic, institutional and
 policymaking changes. 
Journal: Applied Economics 
Pages: 3117-3129 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367622 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367622 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3117-3129




Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan 
Author-X-Name-First: Saroja 
Author-X-Name-Last: Selvanathan 
Author-Name: Brinda Viswanathan 
Author-X-Name-First: Brinda 
Author-X-Name-Last: Viswanathan 
Author-Name: E. A. Selvanathan 
Author-X-Name-First: E. A. 
Author-X-Name-Last: Selvanathan 
Author-Name: Muthu Mangai 
Author-X-Name-First: Muthu 
Author-X-Name-Last: Mangai 
Title: Modelling the domestic and foreign tourist arrivals to Tamil Nadu (India) 
Abstract:
  In recent years, due to the Indian Federal Government's and Tamil Nadu
 State Government's various initiatives and promotional activities, foreign
 and domestic tourist arrivals in Tamil Nadu are on the increase. This
 article aims to model the monthly tourist arrivals (foreign as well as
 domestic) in Tamil Nadu for monthly time series data during the period
 1998 to 2002 using univariate time-series models. As both time series show
 strong seasonal patterns, we also investigate the possibility of seasonal
 unit roots in the domestic and foreign tourist arrivals series. The
 results show that significant growth in domestic and foreign arrivals
 takes place during the months December to January. Growth rate for
 domestic tourist arrivals is positive during April and May, but is
 negative for the foreign tourist arrivals during April and insignificant
 during May. Such information would be very useful to the Tamil Nadu
 government and the tourism industry in maximizing the usage of available
 tourist spot infrastructure and to provide high quality service. 
Journal: Applied Economics 
Pages: 3131-3142 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367598 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3131-3142




Template-Type: ReDIF-Article 1.0
Author-Name: Jongsu Lee 
Author-X-Name-First: Jongsu 
Author-X-Name-Last: Lee 
Author-Name: Minkyu Lee 
Author-X-Name-First: Minkyu 
Author-X-Name-Last: Lee 
Title: Analysis on the growth of telecommunication services: a global comparison of diffusion patterns 
Abstract:
  With the development of the Internet, the telecommunication market has
 seen a rapid shift from voice-based services to data-based services.
 Relationships of substitutability and complementarity have emerged among
 communications technology services such as Internet service, mobile phone
 service and fixed telephone service. The article analyses the diffusion
 patterns of communication services in different continents. A modified
 logistic growth model is estimated using panel data for the years
 1975-2004. The research forms a valuable framework for forecasting demand
 for new services based on the diffusion of incumbent services and can
 inform strategies for entering the communications network industry. 
Journal: Applied Economics 
Pages: 3143-3150 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367655 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367655 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3143-3150




Template-Type: ReDIF-Article 1.0
Author-Name: Adnan Kasman 
Author-X-Name-First: Adnan 
Author-X-Name-Last: Kasman 
Author-Name: Evrim Turgutlu 
Author-X-Name-First: Evrim 
Author-X-Name-Last: Turgutlu 
Title: Cost efficiency and scale economies in the Turkish insurance industry 
Abstract:
  This article examines the cost efficiency and scale economies of
 insurance firms in the Turkish insurance industry over a 15-year period,
 1990-2004. Using the stochastic cost frontier model, cost efficiency
 scores and scale economies were estimated for each firm in the sample. The
 results show that mean cost inefficiencies range between 18.3 and 36.9% of
 total costs and they do not tend to decrease over time. On average, small
 firms are more cost efficient than large firms. Economies of scale appear
 present and significant for any class size. The results suggest that there
 is a substantial difference in scale economies between small and large
 insurance firms. 
Journal: Applied Economics 
Pages: 3151-3159 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367663 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367663 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3151-3159




Template-Type: ReDIF-Article 1.0
Author-Name: Gwanghoon Lee 
Author-X-Name-First: Gwanghoon 
Author-X-Name-Last: Lee 
Title: International knowledge spillovers through the import of information technology commodities 
Abstract:
  Using the panel data from 1981 to 2000 of 17 Organization for Economic
 Co-operation and Development (OECD) countries, we investigate the role of
 the trade flow of information technology (IT) commodities in international
 knowledge spillovers. We use the group mean fully modified ordinary least
 squares (OLS) estimator, proposed by Pedroni (2000), that allows for
 greater flexibility in the presence of heterogeneity of cointegrating
 vectors among countries under panel cointegration. The results of
 estimation confirm statistically significant positive effects of IT
 imports on international knowledge spillovers. In contrast, non-IT imports
 turn out to have negative effects on the productivity of importing
 countries. 
Journal: Applied Economics 
Pages: 3161-3169 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367515 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367515 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3161-3169




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Jabir 
Author-X-Name-First: Imad 
Author-X-Name-Last: Jabir 
Title: The dynamic relationship between the US GDP, imports and domestic production of crude oil 
Abstract:
  This article investigates the dynamic relationship between crude oil
 imports, gross domestic product (GDP) and domestic crude oil production of
 the United States using a Vector Error Correction model estimation,
 generalized impulse response functions, persistence profile and variance
 decompositions. This article results suggest that the GDP has a leading
 role in determining oil imports. 
Journal: Applied Economics 
Pages: 3171-3178 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367531 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367531 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3171-3178




Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Chun Tseng 
Author-X-Name-First: Wei-Chun 
Author-X-Name-Last: Tseng 
Author-Name: Chi-Chung Chen 
Author-X-Name-First: Chi-Chung 
Author-X-Name-Last: Chen 
Title: Estimating the wetland rental fee: a case study involving a Taiwan wetland 
Abstract:
  Wetlands provide many functions that are both economic and recreational
 and are valuable in terms of their ecological diversity, while at the same
 time being nonmarket value products. The purpose of this study is to
 estimate the optimal wetland rental through estimations of both the demand
 and supply functions in relation to wetland. The wetland supply function
 is directly estimated based on the data provided by the owners of the
 wetland, while the estimation of the wetland input demand function
 involves using the bootstrapping and contingent visitation approaches.
 Such estimation approaches could also be applied to other nonmarket value
 products that give rise to environmental externalities. The estimation of
 rental fee could provide a long-term leasing contract that gives the
 landlord with a particular rent to lease their lands to support a wetland
 eco-tourism park to maintain wetland for substantial management. Several
 environmental management policy implications are also addressed. 
Journal: Applied Economics 
Pages: 3179-3188 
Issue: 24 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367630 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367630 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3179-3188




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of sport: introduction and overview 
Abstract:
  We provide an introduction and overview to the 15 applied studies making
 up this special theme on sport. The studies cover a wide range of
 international and regional experience and employ a variety of applied
 techniques. 
Journal: Applied Economics 
Pages: 3189-3191 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840903385257 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903385257 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3189-3191




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Groothuis 
Author-X-Name-First: Peter 
Author-X-Name-Last: Groothuis 
Author-Name: James Richard Hill 
Author-X-Name-First: James Richard 
Author-X-Name-Last: Hill 
Author-Name: Timothy Perri 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Perri 
Title: The dilemma of choosing talent: Michael Jordans are hard to find 
Abstract:
  This article explores the dilemma of choosing talent using NBA data from
 1987 to 2003. We find there is much uncertainty in selecting talent. If
 superstars are found, they are usually identified early. However, more
 false positives exist than correct decisions with high draft picks. Our
 results suggest the dilemma of choosing talent is not so much a winner's
 curse but more like a purchase of a lottery ticket. Most times you lose,
 but, if you are going to win, you must buy a ticket. 
Journal: Applied Economics 
Pages: 3193-3198 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701564459 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564459 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3193-3198




Template-Type: ReDIF-Article 1.0
Author-Name: Uwe Sunde 
Author-X-Name-First: Uwe 
Author-X-Name-Last: Sunde 
Title: Heterogeneity and performance in tournaments: a test for incentive effects using professional tennis data 
Abstract:
  This article provides an approach to test whether greater heterogeneity
 of contestants leads to lower effort exertion in elimination tournaments,
 as predicted by conventional tournament models. This prediction is
 difficult to test with real world data because the effort is difficult to
 measure. Based on a simple behavioural model, testable implications are
 derived and an identification strategy is suggested that allows to test
 for an incentive effect of heterogeneity even when the effort is
 unobservable. The application uses data from professional tennis
 tournaments and provides evidence that heterogeneity affects the
 incentives to exert effort. 
Journal: Applied Economics 
Pages: 3199-3208 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802243789 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802243789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3199-3208




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Cebula 
Author-X-Name-First: Richard 
Author-X-Name-Last: Cebula 
Author-Name: Michael Toma 
Author-X-Name-First: Michael 
Author-X-Name-Last: Toma 
Author-Name: Jay Carmichael 
Author-X-Name-First: Jay 
Author-X-Name-Last: Carmichael 
Title: Attendance and promotions in minor league baseball: the Carolina League 
Abstract:
  This empirical study investigates determinants of attendance at minor
 league baseball games in the Carolina League in 2006. The focus of the
 analysis is on the effect of a wide variety of game-day promotions on
 attendance on a game-by-game basis, rather than aggregate attendance
 during the season. The Ordinary Least Square (OLS) results imply that
 attendance is positively a function of per capita income in the city or
 county hosting the team, runs scored by the home team, Friday and Saturday
 games, and promotions that provide cost-reduced food or beverages, low-
 and high-value merchandise and post-game fireworks. Attendance is
 negatively a function of home team errors, Monday games and possibly rainy
 conditions during the game. An unusual finding with respect to minor
 league baseball is that team performance variables affect attendance.
 However, home team runs scored and home team errors contribute to the
 overall entertainment experience for the home team fans, and thus yield
 plausible effects on attendance. 
Journal: Applied Economics 
Pages: 3209-3214 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840903286323 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903286323 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3209-3214




Template-Type: ReDIF-Article 1.0
Author-Name: James Swofford 
Author-X-Name-First: James 
Author-X-Name-Last: Swofford 
Author-Name: Franklin Mixon 
Author-X-Name-First: Franklin 
Author-X-Name-Last: Mixon 
Author-Name: Trellis Green 
Author-X-Name-First: Trellis 
Author-X-Name-Last: Green 
Title: Can a sub-optimal tournament be optimal when the prize can be collectively consumed? The case of college football's national championship 
Abstract:
  One of the most heated debates in all of sports is the annual debate over
 major college football's national champion. Since its implementation in
 1995, the Bowl Championship Series (BCS) system has often failed to quell
 the controversy concerning what team is the Division 1 Football Bowl
 Subdivision football champion. Many of the BCS controversies have spawned
 changes in the title selection format, while others are perhaps the result
 of certain changes. What remains now is the cry from some college football
 fans for an expanded 'national championship playoff,' though college and
 university presidents and many college football coaches continue to resist
 these cries. We try to explain this resistance to expanding the number of
 teams invited to compete for the BCS championship and the persistence of
 the two team playoff format in college football. For three championship
 eras-pre-BCS, BCS and a futuristic post-BCS expanded playoff-we first
 relate some of the controversial details to concepts such as optimal
 tournaments and the public goods concept of collective consumption. 
Journal: Applied Economics 
Pages: 3215-3223 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701765510 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765510 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3215-3223




Template-Type: ReDIF-Article 1.0
Author-Name: Steven Caudill 
Author-X-Name-First: Steven 
Author-X-Name-Last: Caudill 
Title: OSU and LSU: easy to spell but did they belong? Using the method of paired comparisons to evaluate the BCS rankings and the NCAA football championship game 2007-08 
Abstract:
  This article employs the Bradley-Terry method of paired comparisons,
 previously used by Beard and Caudill (2007), to examine the 2007 National
 Collegiate Athletic Association (NCAA) football season. We find that the
 Bowl Championship Series (BCS) did get it right: Ohio State University
 (OSU) number one and Louisiana State University (LSU) number two. Our
 method also indicates that LSU played a much more difficult schedule than
 OSU and that the Southeastern Conference (SEC) is the strongest conference
 in the US. 
Journal: Applied Economics 
Pages: 3225-3230 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840903018809 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903018809 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3225-3230




Template-Type: ReDIF-Article 1.0
Author-Name: Bert Scholtens 
Author-X-Name-First: Bert 
Author-X-Name-Last: Scholtens 
Author-Name: Wijtze Peenstra 
Author-X-Name-First: Wijtze 
Author-X-Name-Last: Peenstra 
Title: Scoring on the stock exchange? The effect of football matches on stock market returns: an event study 
Abstract:
  We analyse the effect of results of football matches on the stock market
 performance of football teams. We analyse 1274 matches of eight teams in
 the national and European competition during 2000-2004. We find that the
 stock market response is significant and positive for victories and
 negative for defeats. The response is significantly stronger in the case
 of defeat. The response is stronger for matches in the European
 competition than for those in the national competition. Unexpected results
 have a stronger impact for European matches than expected ones but this is
 not the case in the national competition. 
Journal: Applied Economics 
Pages: 3231-3237 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701721406 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721406 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3231-3237




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Author-Name: Pedro Garcia-del-Barrio 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Garcia-del-Barrio 
Author-Name: Stephanie Leach 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: Leach 
Title: Analysing the technical efficiency of the Spanish Football League First Division with a random frontier model 
Abstract:
  This article analyses technical efficiency of football clubs in the
 Spanish Football League Division 1 (Primera Liga) from the seasons
 1995-1996 to 2004-2005 with an unbalanced panel data. The random frontier
 model is used, allowing the identification of random variables in the cost
 frontier. It is concluded that the price of capital investment, the number
 of points won and attendance are heterogeneous variables. Therefore, no
 common public policy aiming to improve efficiency can embrace all of the
 clubs, so that policies by clusters are required. 
Journal: Applied Economics 
Pages: 3239-3247 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701765379 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3239-3247




Template-Type: ReDIF-Article 1.0
Author-Name: Phillip Miller 
Author-X-Name-First: Phillip 
Author-X-Name-Last: Miller 
Title: Subsidized monopolists and product prices: the case of Major League Baseball 
Abstract:
  I analyse the setting of ticket prices when teams receive subsidization.
 I model teams as entertainment providers, where entertainment is generated
 by selling wins and amenities. I argue that subsidization of teams
 generally comes from subsidizing the amenities in the teams' stadiums.
 Subsidization lowers the marginal cost of providing them to fans, driving
 ticket prices lower. The empirical analysis suggests that this is the
 case. The average team playing in a 5-year-old public stadium charges a
 ticket price that is 40 cents less than the same team playing in a private
 stadium of the same age. 
Journal: Applied Economics 
Pages: 3249-3255 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802360203 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3249-3255




Template-Type: ReDIF-Article 1.0
Author-Name: Eiji Yamamura 
Author-X-Name-First: Eiji 
Author-X-Name-Last: Yamamura 
Author-Name: Inyong Shin 
Author-X-Name-First: Inyong 
Author-X-Name-Last: Shin 
Title: Convergence, clustering and their effects on attendance in the Japan Professional Baseball League 
Abstract:
  In this research, using a panel data set for the Japan Professional
 Baseball League (JPBL) during the post-WWII period, we apply the technique
 developed by Hobijn and Franses (2000) to examine the competitive balance
 from the view point of convergence and its effect upon game attendance.
 The JPBL comprises two leagues, the Central League (CL) and the Pacific
 League (PL). The CL is far more popular with fans than the PL. Our
 estimation results showed that the number of the PL clusters continues to
 go towards unity, thereby raising the uncertainty of the outcome to
 increase the PL game attendance more rapidly. Also, attendance by CL fans
 tends to be more inelastic with team performance than for the PL.
 Therefore, the PL payroll was more elastic to wins than that of the CL.
 The features of each League have crucial impacts on the outcomes and the
 behaviours of team insiders such as players and managers. 
Journal: Applied Economics 
Pages: 3257-3265 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3257-3265




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Krautmann 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Krautmann 
Title: Market size and the demand for talent in major league baseball 
Abstract:
  In this article, we look at how revenues affect the personnel decisions
 of Major League Baseball (MLB) teams. It is well established that teams
 with the strongest demands end up with the top stars and deepest benches,
 thus the best chance of winning. Since a team's demand for talent is its
 Marginal Revenue Product, the critical test is whether large-market teams
 have a greater Marginal Revenue (MR). Controlling for the impact of
 re-distributional efforts by MLB, we find that the MR of a large-market
 team is about 50% larger than that of a small-market team. Furthermore, we
 find that re-distributive efforts have a more severe effect on
 small-market teams. &#x201c;Are the New York Yankees a dynasty because
 they outsmarted everyone? No, they just outspent everyone.&#x201d; Sam
 Smith, Chicago Tribune 
Journal: Applied Economics 
Pages: 3267-3273 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701582121 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701582121 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3267-3273




Template-Type: ReDIF-Article 1.0
Author-Name: Jason Winfree 
Author-X-Name-First: Jason 
Author-X-Name-Last: Winfree 
Title: Owners incentives during the 2004-05 National Hockey League lockout 
Abstract:
  This study shows that firm owners can indirectly benefit from work
 stoppages if they own other firms in substitute industries and gain market
 power for those other firms. The incentives of the owners are examined
 with a model of cross-ownership cartels and data from professional sports.
 Assuming that various professional sport events are substitutes, owners
 may increase profits by eliminating competition, even if they own the
 competition. This study shows that the recent National Hockey League (NHL)
 lockout caused a statistically significant increase in attendance for the
 National Basketball Association and junior hockey leagues. Given that many
 NHL owners own teams in these substitutable leagues, this could be
 construed as anti-competitive behaviour and may have prolonged the NHL
 lockout and helped NHL owners in collective bargaining. Given the public
 investment in sports facilities and market power in professional sports,
 this analysis calls for cross-ownership across professional sports to be
 questioned. 
Journal: Applied Economics 
Pages: 3275-3285 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701765395 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765395 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3275-3285




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Klein 
Author-X-Name-First: Christian 
Author-X-Name-Last: Klein 
Author-Name: Bernhard Zwergel 
Author-X-Name-First: Bernhard 
Author-X-Name-Last: Zwergel 
Author-Name: J. Henning Fock 
Author-X-Name-First: J. 
Author-X-Name-Last: Henning Fock 
Title: Reconsidering the impact of national soccer results on the FTSE 100 
Abstract:
  In past decades, many empirical studies revealed return anomalies in many
 different asset classes and markets. Very recent publications have,
 however, even found evidence that stock markets react to the results of
 soccer matches. In this article, we argue that such empirical studies
 should be analysed carefully; we thus endorse the use of replication
 studies to verify results. Consequently, by rebuilding the study of Ashton
 et al. (2003), we are able to detect mistakes in the empirical set-up.
 Based on these findings, we demonstrate how even minor flaws can have a
 crucial influence on the results of such studies and point out pitfalls
 that are frequently encountered. We furthermore emphasize the importance
 of robustness checks to validate the results of empirical studies. 
Journal: Applied Economics 
Pages: 3287-3294 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802112471 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112471 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3287-3294




Template-Type: ReDIF-Article 1.0
Author-Name: Florian Hagn 
Author-X-Name-First: Florian 
Author-X-Name-Last: Hagn 
Author-Name: Wolfgang Maennig 
Author-X-Name-First: Wolfgang 
Author-X-Name-Last: Maennig 
Title: Large sport events and unemployment: the case of the 2006 soccer World Cup in Germany 
Abstract:
  This study analyses on the basis of a multivariate analysis ex post the
 effects on the jobs market of a soccer World Cup, in this case the 2006
 World Cup held in Germany. In addition to three methods already used for
 other analyses in studies of sporting events, an extended
 'Difference-in-Difference' estimate is used in order to compare the
 development of the numbers of unemployed in the 12 World Cup venues with
 the development of the numbers of unemployed in 63 other German cities.
 The results demonstrate that in none of the respective match venues did
 the effect of the sporting event on unemployment differ significantly from
 zero. 
Journal: Applied Economics 
Pages: 3295-3302 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701604545 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604545 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3295-3302




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Author-Name: Bernd Frick 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Frick 
Author-Name: Jose Passos 
Author-X-Name-First: Jose 
Author-X-Name-Last: Passos 
Title: Coaching for survival: the hazards of head coach careers in the German 'Bundesliga' 
Abstract:
  This article analyses how long head coaches survive in the clubs of the
 first German football league ('Bundesliga'), where the dismissal of a
 presumably weak coach is a generally adopted procedure in case of a poor
 sporting performance of the team. We use duration models for repeated
 events to accommodate the correlation within individuals. We find that the
 head coaches of successful teams and those working during the more recent
 'Bosman Effect' period are more likely to survive in the Bundesliga.
 Moreover, the head coaches of clubs with relatively high team wage bills
 are likely to survive for shorter periods of time. 
Journal: Applied Economics 
Pages: 3303-3311 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701721455 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721455 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3303-3311




Template-Type: ReDIF-Article 1.0
Author-Name: Hongbin Li 
Author-X-Name-First: Hongbin 
Author-X-Name-Last: Li 
Author-Name: Lingsheng Meng 
Author-X-Name-First: Lingsheng 
Author-X-Name-Last: Meng 
Author-Name: Qian Wang 
Author-X-Name-First: Qian 
Author-X-Name-Last: Wang 
Title: The government's role in China's Olympic glory 
Abstract:
  This article examines the determinants of China's Olympic success by
 drawing on provincial-level data. We find that it is government spending
 on sports, rather than per capita income, that has the greatest impact on
 this success. Our findings suggest that government involvement is still
 the most fundamental feature of sports organization in China. 
Journal: Applied Economics 
Pages: 3313-3318 
Issue: 25 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701736081 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736081 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3313-3318




Template-Type: ReDIF-Article 1.0
Author-Name: Darold Barnum 
Author-X-Name-First: Darold 
Author-X-Name-Last: Barnum 
Author-Name: John Gleason 
Author-X-Name-First: John 
Author-X-Name-Last: Gleason 
Author-Name: Brendon Hemily 
Author-X-Name-First: Brendon 
Author-X-Name-Last: Hemily 
Title: Using panel data analysis to estimate confidence intervals for the DEA efficiency of individual decision making units 
Abstract:
  This article demonstrates a methodology using panel data analysis to
 estimate confidence intervals for the data envelopment analysis efficiency
 of individual decision making units (DMUs), and the statistical
 significance of trends in individual DMU efficiency. The procedure
 accounts for stochastic variations of the inputs and outputs of the target
 DMU as well as stochastic variations of the inputs and outputs of its
 efficient benchmark peers. The procedure is demonstrated using 9 years of
 data from 34 Canadian paratransit agencies. 
Journal: Applied Economics 
Pages: 3319-3326 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701493741 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493741 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3319-3326




Template-Type: ReDIF-Article 1.0
Author-Name: Zia Wadud 
Author-X-Name-First: Zia 
Author-X-Name-Last: Wadud 
Author-Name: Daniel Graham 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Graham 
Author-Name: Robert Noland 
Author-X-Name-First: Robert 
Author-X-Name-Last: Noland 
Title: A cointegration analysis of gasoline demand in the United States 
Abstract:
  Time-series estimation of gasoline demand elasticities often does not
 take into account the possibility of nonstationarity in the underlying
 data, which may render the parameter estimates spurious. Studies have
 shown that the time trending variables used to explain gasoline demand
 could be difference stationary and therefore, may require cointegration
 analysis to assess the relationship among the trending variables. In this
 work we use the cointegration technique to derive long-run and short-run
 demand elasticities of noncommercial gasoline consumption using
 time-series data for the USA from 1949 to 2004. We also attempt to
 incorporate the presence of a structural break in the data generation
 process of the time trending variables. Our results show that the
 consumption of gasoline and lifetime income have a long-term stable
 relationship after the second oil shock of 1978. Prior to the first oil
 shock of 1973, no such long-run relationship could be established through
 cointegration. 
Journal: Applied Economics 
Pages: 3327-3336 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701477306 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701477306 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3327-3336




Template-Type: ReDIF-Article 1.0
Author-Name: Erik Dietzenbacher 
Author-X-Name-First: Erik 
Author-X-Name-Last: Dietzenbacher 
Author-Name: Alex Hoen 
Author-X-Name-First: Alex 
Author-X-Name-Last: Hoen 
Author-Name: Bart Los 
Author-X-Name-First: Bart 
Author-X-Name-Last: Los 
Author-Name: Jan Meist 
Author-X-Name-First: Jan 
Author-X-Name-Last: Meist 
Title: International convergence and divergence of material input structures: an industry-level perspective 
Abstract:
  This article analyses whether international material input structures
 have converged or diverged over time. Pooled variances for 25 industries
 were obtained from OECD input-output tables in constant prices for nine
 countries over the period 1971-1990. It is found that high-tech industries
 were mainly characterized by divergence of material input structures,
 whereas convergence was found for many low-tech, more mature industries.
 In line with studies on (labour) productivity growth rates, convergence of
 material input structures was prevalent in the 1970s, while divergence
 dominated in the 1980s. 
Journal: Applied Economics 
Pages: 3337-3344 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701439355 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701439355 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3337-3344




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Egger 
Author-X-Name-First: Peter 
Author-X-Name-Last: Egger 
Author-Name: Stephan Gruber 
Author-X-Name-First: Stephan 
Author-X-Name-Last: Gruber 
Author-Name: Michael Pfaffermayr 
Author-X-Name-First: Michael 
Author-X-Name-Last: Pfaffermayr 
Title: The law of one price: conditional convergence evidence from disaggregated data 
Abstract:
  This article contributes to the literature on the Law of One Price (LOP)
 and absolute Purchasing Power Parity (PPP) in two ways. First, it uses a
 novel set of PPP data from the International Comparison Programme for OECD
 countries and 195 internationally comparable products from 1980 to 1996.
 Second, it derives and applies a test of conditional &#x3c3;-convergence,
 which does not require long-time spans or high frequency data. Between
 1990 and 1996 for 10 out of 23 countries, a significant reduction in the
 variance of the deviations from LOP is found for tradeables, but none in
 case of nontradeables. For the former, the deviations from LOP close out
 at half-lives between 2.2 and 6.3 years. However, there are also
 persistent country-specific deviations from LOP parities. 
Journal: Applied Economics 
Pages: 3345-3357 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701426584 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701426584 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3345-3357




Template-Type: ReDIF-Article 1.0
Author-Name: Nissim Ben David 
Author-X-Name-First: Nissim Ben 
Author-X-Name-Last: David 
Title: Efficiency aspects of increasing inheritance taxes while decreasing income taxes 
Abstract:
  This article tries to shed some light on the economic efficiency aspects
 of a tax reform that would increase inheritance taxes while decreasing
 income taxes. An analysis of labour market decisions following the
 activation of such a reform is presented. An international comparison of
 inheritance tax collection shows that almost all industrial countries
 impose an inheritance tax. However, government revenue from inheritance
 and gift taxes in Europe is lower than 1% of GDP and is very low in the
 United States as well. Applying the proposed reform could increase work
 hours and delay retirement decisions. 
Journal: Applied Economics 
Pages: 3359-3366 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701416411 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701416411 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3359-3366




Template-Type: ReDIF-Article 1.0
Author-Name: D. W. Kreutzer 
Author-X-Name-First: D. W. 
Author-X-Name-Last: Kreutzer 
Title: Risk premiums and optimal combat-force levels in an all-volunteer army 
Abstract:
  Using a straight-forward and intuitive model of individual risk-wealth
 tradeoffs, we posit a labour market where a firm's total wage bill
 declines as it increases employment. Using value of statistical life
 estimates from Viscusi and Aldy (2003) and Mrozek and Taylor (2002), we
 analyze the market for security personnel in Iraq for both the US military
 and a private contractor. We conclude that the US military's marginal cost
 of labour is about $8000 less than the wage and that the marginal cost for
 the private contractor may actually be negative. 
Journal: Applied Economics 
Pages: 3367-3373 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701416403 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701416403 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3367-3373




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio David 
Author-X-Name-First: Antonio 
Author-X-Name-Last: David 
Title: Are price-based capital account regulations effective in developing countries? 
Abstract:
  In this article, we evaluate the effectiveness of policy measures adopted
 by Chile and Colombia aiming to mitigate the deleterious effects of
 pro-cyclical capital flows. In the case of Chile, according to our GMM
 analysis, capital controls succeeded in reducing net short-term capital
 flows, but did not affect long-term flows. As far as Colombia is
 concerned, the regulations were capable of affecting total flows and also
 long-term ones. In addition, our cointegration models indicate that the
 regulations did not have a direct effect on the real exchange rate in the
 Chilean case. Nonetheless, the model used for Colombia did detect a direct
 impact of the capital controls on the real exchange rate. Therefore, our
 results do not seem to support the idea that those regulations were easily
 evaded. 
Journal: Applied Economics 
Pages: 3375-3388 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701367689 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367689 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3375-3388




Template-Type: ReDIF-Article 1.0
Author-Name: Mei-Hui Wang 
Author-X-Name-First: Mei-Hui 
Author-X-Name-Last: Wang 
Author-Name: Tai-Hsin Huang 
Author-X-Name-First: Tai-Hsin 
Author-X-Name-Last: Huang 
Title: Threshold effects of financial status on the cost frontiers of financial institutions in nondynamic panels 
Abstract:
  This article applies Hansen's (1999, 2000) threshold regression model to
 estimate translog cost frontiers in the hope of shedding light on the
 banking industry's production processes and the extent of its Technical
 Efficiency (TE). The threshold technique allows for the existence of
 multiple technologies of production, distinguished by an exogenous
 threshold variable. Strong evidence of multiple technologies is found in
 the industry irrespective of which financial indicator, as constructed by
 factor analysis, defines the threshold variable. Cost savings and scale
 economies among the various underlying technologies are compared herein.
 We also highlight the differences between the threshold results and the
 conventional cost frontier. 
Journal: Applied Economics 
Pages: 3389-3401 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840802600079 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600079 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3389-3401




Template-Type: ReDIF-Article 1.0
Author-Name: Kangsik Choi 
Author-X-Name-First: Kangsik 
Author-X-Name-Last: Choi 
Title: Conformism, peer pressure and adverse selection 
Abstract:
  To examine the effects of peer pressure in adverse selection problem, we
 define a peer pressure function that represents the psychological costs
 and incorporate it into the agent's utility function. Based on these
 assumptions, the efficient agent who has conformity preference produces
 less outputs than the first-best level, while the inefficient agent
 produces more than the second-best level of standard adverse selection
 output when the agents feel peer pressure among themselves. Although the
 production gap between the utility functions under peer pressure narrows,
 the gap of the ex post information rent goes wider as the information rent
 of efficient agents increases. Our theoretical results are consistent with
 some empirical/experimental findings. 
Journal: Applied Economics 
Pages: 3403-3409 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701392877 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701392877 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3403-3409




Template-Type: ReDIF-Article 1.0
Author-Name: Grace Lordan 
Author-X-Name-First: Grace 
Author-X-Name-Last: Lordan 
Title: Considering endogeneity and heterogeneity-a hierarchical random parameters approach to measuring efficiency 
Abstract:
  Modelling efficiency in healthcare with stochastic production frontiers
 (SPF) is complicated because of the immeasurable elements, quality of care
 and casemix as well as complex data structures. This analysis considers a
 SPF approach to estimating efficiencies for organizations in the Republic
 of Ireland that supply GP services outside of normal working hours. These
 organizations are run out of a number of primary care centres. The daily
 payroll for the centre is the output in the SPF and the services offered
 by these centres enter the production function as inputs. It is argued
 that these services are exogenous variables and are determined by patient
 characteristics and reported conditions and not the staff within the
 centre. A characteristic of the data used is a two-tier structure
 emanating from a centre lying within a co-op. To account for this tier
 structure the analysis considers a random parameters approach. The
 analysis also considers proxies for quality of care and casemix and
 incorporates them into the SPF. The sensitivity of efficiency values to
 the excluding the random parameters, quality of care and casemix variables
 is examined by estimating three reduced forms of the model which ignore
 each of these elements. 
Journal: Applied Economics 
Pages: 3411-3423 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701426592 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701426592 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3411-3423




Template-Type: ReDIF-Article 1.0
Author-Name: Haoming Liu 
Author-X-Name-First: Haoming 
Author-X-Name-Last: Liu 
Author-Name: Yohanes Riyanto 
Author-X-Name-First: Yohanes 
Author-X-Name-Last: Riyanto 
Title: Ownership of property-rights and the allocation of talents 
Abstract:
  Under the reserve-clause system that assigns the property-rights on the
 Major League Baseball players' services to teams, player transfers are
 negotiated between teams without the involvement of players. In contrast,
 under the current free-agency system, players with free-agent status
 negotiate directly with potential suitors. Thus, the system assigns the
 property-rights to players. Using data extracted from the Baseball Archive
 (http://baseball1.com), this article examines the effect of the change in
 the property-rights assignment on the allocation of talents across teams.
 We find that the change increased large-market teams' shares of veteran
 all-star players and the concentration of senior players. 
Journal: Applied Economics 
Pages: 3425-3436 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701392869 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701392869 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3425-3436




Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Acosta-Gonzalez 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Acosta-Gonzalez 
Author-Name: Julian Andrada-Felix 
Author-X-Name-First: Julian 
Author-X-Name-Last: Andrada-Felix 
Author-Name: Fernando Fernandez-Rodriguez 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Fernandez-Rodriguez 
Title: Estimating time-varying variances and covariances via nearest neighbour multivariate predictions: applications to the NYSE and the Madrid Stock Exchange Index 
Abstract:
  In this article, we present a technique to obtain the time-varying
 covariance matrix for several time series for nearest neighbour
 predictors. To illustrate the use of this technique, we analyse the
 time-varying variances and correlations between the daily returns on two
 equity stock market indexes, the New York Stock Exchange and the Madrid
 Stock Exchange Index. 
Journal: Applied Economics 
Pages: 3437-3445 
Issue: 26 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701439371 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701439371 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3437-3445




Template-Type: ReDIF-Article 1.0
Author-Name: O. de Bandt 
Author-X-Name-First: O. 
Author-X-Name-Last: de Bandt 
Author-Name: C. Bruneau 
Author-X-Name-First: C. 
Author-X-Name-Last: Bruneau 
Author-Name: W. El Amri 
Author-X-Name-First: W. 
Author-X-Name-Last: El Amri 
Title: Convergence in household credit demand across euro area countries: evidence from panel data 
Abstract:
  This article contributes to the literature on the convergence of
 financial systems in the euro area by estimating household credit demand
 in individual countries. Using the ARDL framework advocated notably by
 Pesaran et al. (1999), the article provides evidence on the convergence of
 long-run credit demand determinants (interest rates, investment and house
 prices) in the largest euro area countries, while short run-dynamics
 remain heterogenous across countries. The article also demonstrates that
 the equation uncovers demand rather than supply behaviour. 
Journal: Applied Economics 
Pages: 3447-3462 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701493774 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493774 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3447-3462




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Seaton 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Seaton 
Title: A nonparametric revealed preference test of optimal intra-firm resource allocation 
Abstract:
  The collective rationality hypothesis initiated by Chiappori (1988a) and
 applied by Seaton (1997, 2001) for a two-person household is used to
 distinguish the organizational behaviour of firms. Firms produce
 satisfaction to groups as traditional managerial and early behavioural
 theories of the firm of Williamson, Baumol and Marris suggest, as well as
 more modern principle agent models. Under certain conditions, intra-firm
 bargaining leads to a Pareto optimal outcome. What makes this work an
 important contribution is that it identifies a set of nonvacuous testable
 restrictions to empirically detect if firm-level data satisfy Pareto
 optimal behaviour for the main decision makers in the organization. 
Journal: Applied Economics 
Pages: 3463-3476 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701537836 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537836 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3463-3476




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Jarrett 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Jarrett 
Author-Name: Zhenzhen Sun 
Author-X-Name-First: Zhenzhen 
Author-X-Name-Last: Sun 
Title: Daily variation, capital market efficiency and predicting stock returns for the Hong Kong and Tokyo exchanges 
Abstract:
  Studying capital market efficiency is important because result may infer
 that there are predictable properties of the time series of prices of
 traded securities on organized markets. We examine the weak form of the
 efficient markets hypothesis to indicate its usefulness in terms of the
 results of this study. Furthermore, this study of individual securities
 prices of traded securities on the organized markets of Hong Kong and
 Japan corroborate previous findings of studies of individual stocks and
 market indexes both in Asian nations, the United States and other stock
 exchanges in the United Kingdom and Europe. Daily patterns are present in
 the times series of securities prices. You will note also, that the models
 identified reflect the returns on individual firms listed on the two of
 the three largest Asian Stock Exchanges. 
Journal: Applied Economics 
Pages: 3477-3482 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701493782 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493782 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3477-3482




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Jacobs 
Author-X-Name-First: Jan 
Author-X-Name-Last: Jacobs 
Author-Name: Gerard Kuper 
Author-X-Name-First: Gerard 
Author-X-Name-Last: Kuper 
Author-Name: Daan van Soest 
Author-X-Name-First: Daan 
Author-X-Name-Last: van Soest 
Title: On the effect of high energy prices on investment 
Abstract:
  Empirical analyses of firm behaviour typically assume that there is a
 stable relationship between investment on the one hand and changes in the
 relative prices of inputs, output demand and other determinants on the
 other hand. However, because of the lumpy nature and irreversibility of
 investments and the presence of uncertainty about future economic
 developments, a specific percentage change in relative prices and output
 demand may not always lead to the same percentage change in capital
 stocks. That means that different regimes may exist in investment
 behaviour. We test whether such regimes exist using high-quality data on
 eight manufacturing industries in the Netherlands. Three different regimes
 can be identified that are characterized by differences in the relative
 input price levels and we find that if relative prices take on extreme
 values, the propensity to adjust the scale of production to changes in
 demand is very low. 
Journal: Applied Economics 
Pages: 3483-3490 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701537794 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537794 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3483-3490




Template-Type: ReDIF-Article 1.0
Author-Name: Bing-Xuan Lin 
Author-X-Name-First: Bing-Xuan 
Author-X-Name-Last: Lin 
Author-Name: Chen-Miao Lin 
Author-X-Name-First: Chen-Miao 
Author-X-Name-Last: Lin 
Author-Name: Stephen Smith 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Smith 
Title: Who bets against hedgers and how much they trade? A theory and empirical tests 
Abstract:
  This article provides a simple equilibrium model of a futures market.
 Since the futures market is a zero sum game, some firms will, in
 equilibrium, end up being 'speculators' who bet against 'hedgers'. We show
 it is firms that have high initial capital and/or poor production
 opportunities that are the most likely candidates to bet against the
 hedgers. In equilibrium, these groups earn a premium in order to provide
 this insurance so that speculating increases value. We also provide some
 results that imply an inverted U shaped relationship between trading
 volume and the level of futures prices. Empirical evidence from the S&P
 futures contract provides strong empirical support for this theoretical
 result. 
Journal: Applied Economics 
Pages: 3491-3497 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701493766 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493766 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3491-3497




Template-Type: ReDIF-Article 1.0
Author-Name: M. Ali Choudhary 
Author-X-Name-First: M. 
Author-X-Name-Last: Ali Choudhary 
Author-Name: Vasco Gabriel 
Author-X-Name-First: Vasco 
Author-X-Name-Last: Gabriel 
Title: Is there really a gap between aggregate productivity and technology? 
Abstract:
  The important contribution by Basu and Fernald (2002) shows that, in
 practice, there is a statistically significant gap between aggregate
 productivity and technology that can be attributed to inefficient product
 and labour markets. This is important, as it implies that the Solow
 residual is an imperfect index for aggregate technology change. We take a
 related approach and find that when we control for capacity utilization,
 time varying markup and account for externalities between industries, by
 employing a superior system estimator, the gap between the aggregate
 productivity and technology is shown to narrow considerably. 
Journal: Applied Economics 
Pages: 3499-3503 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701537851 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537851 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3499-3503




Template-Type: ReDIF-Article 1.0
Author-Name: Fatima S. Al Shamsi 
Author-X-Name-First: Fatima S. 
Author-X-Name-Last: Al Shamsi 
Author-Name: Hassan Aly 
Author-X-Name-First: Hassan 
Author-X-Name-Last: Aly 
Author-Name: Mohamed El-Bassiouni 
Author-X-Name-First: Mohamed 
Author-X-Name-Last: El-Bassiouni 
Title: Measuring and explaining the efficiencies of the United Arab Emirates banking system 
Abstract:
  Using newly collected data from a survey distributed to all banks in the
 United Arab Emirates (UAE), this article measures economic efficiency in
 the banking industry, namely allocative, technical, pure technical and
 scale efficiency. Employing a nonparametric Data Envelopment Analysis
 (DEA) approach, the study estimates the efficiency for a cross section of
 the UAE banks in 2004. The results indicate that the dominant source of
 inefficiency in the UAE banking is stemming from allocative inefficiency
 rather than technical inefficiency. Furthermore, the main source of the
 relatively small size, technical inefficiency in the UAE banking industry
 is not the scale inefficiency but rather pure technical inefficiency. The
 results further indicate that the UAE banks are able to use their input
 resources more efficiently when they have more branches, and that newer
 banks are performing better than older banks on average. Moreover, the
 results also show that short experiences of employees affect efficiencies
 negatively and government ownership tends to reduce efficiency (as the
 government shares increase in the bank, the efficiency scores get lower).
 Finally, the most interesting results have to do with finding higher
 average efficiencies in banks that employ more women, more managers and
 less national citizens of the UAE. 
Journal: Applied Economics 
Pages: 3505-3519 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840801964773 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964773 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3505-3519




Template-Type: ReDIF-Article 1.0
Author-Name: Belayet Hossain 
Author-X-Name-First: Belayet 
Author-X-Name-Last: Hossain 
Author-Name: Ehsan Latif 
Author-X-Name-First: Ehsan 
Author-X-Name-Last: Latif 
Title: Determinants of housing price volatility in Canada: a dynamic analysis 
Abstract:
  This article tries to identify the determinants of housing price
 volatility and to examine the dynamic effects of these determinants on
 volatility using quarterly data for Canada. The Generalized Autoregressive
 Conditional Heteroskedastic (GARCH) and the Vector Autoregressive (VAR)
 models have been employed to analyse possible time variation of the
 housing price volatility and the interactions between the volatility and
 the key macroeconomic variables. We find the evidence of time varying
 housing price volatility for Canada. Our VAR, Granger causality and
 variance decomposition (VDC) analyses demonstrate that housing price
 volatility is affected significantly by gross domestic product (GDP)
 growth rate, housing price appreciation rate and inflation. On the other
 hand, volatility affects GDP growth rate, housing price appreciation and
 volatility itself. The impulse response analysis reveals the asymmetric of
 the positive and negative shocks. The findings of this article have
 important implications, particularly for those seeking to develop
 derivatives for housing market prices. 
Journal: Applied Economics 
Pages: 3521-3531 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701522861 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522861 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3521-3531




Template-Type: ReDIF-Article 1.0
Author-Name: A. L. Baldi-Delatte 
Author-X-Name-First: A. L. 
Author-X-Name-Last: Baldi-Delatte 
Title: A counterfactual analysis of the Argentinian monetary transformation in 2002 
Abstract:
  A hard peg restored economic stability in Argentina during the nineties
 but made it also vulnerable to real shocks in so far as the economy was
 highly dollarized. A devaluation in 1998 in Brasil, its main partner,
 damaged the Argentinian competitiveness and resulted in a fall in export
 demand. There was a need for a real adjustment but removing the peg would
 have implied large balance sheet effects and raised serious financial
 issues. This article endeavours to learn a lesson about the aftermath of
 hard peg regime from the Argentinian experience. It is based on a dynamic
 macroeconomic model to assess the impact of three scenarios, already
 suggested in the literature. Two hypothetical, a floating regime and
 dollarization and one which was actually implemented in 2002, the
 pesification of the whole economy. The simulations suggest that
 pesification was the only scenario with unambiguous expansionary effects. 
Journal: Applied Economics 
Pages: 3533-3544 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701522879 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522879 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3533-3544




Template-Type: ReDIF-Article 1.0
Author-Name: S. Sookram 
Author-X-Name-First: S. 
Author-X-Name-Last: Sookram 
Author-Name: P. K. Watson 
Author-X-Name-First: P. K. 
Author-X-Name-Last: Watson 
Author-Name: F. Schneider 
Author-X-Name-First: F. 
Author-X-Name-Last: Schneider 
Title: Characteristics of households in the informal sector of an emerging economy 
Abstract:
  Using the case study of Trinidad and Tobago, we investigate the
 socio-economic, demographic and attitudinal characteristics of households
 that participate in the informal sector of an emerging economy and their
 perception of the risk of detection by tax authorities while doing so.
 Data are gathered from a cross-sectional field survey covering 570
 households. Results using multinomial logit and ordered probit models
 suggest that households are motivated to participate in the informal
 sector when members spend little time in formal sector activity, believe
 that taxes are too high and their incomes are too low, have dependents to
 support and believe that the resulting tax evasion will go undetected.
 Their perception of the risk of detection by the tax authority is
 determined largely by the income they earn in the formal sector and the
 extent of government bureaucracy prevailing there. 
Journal: Applied Economics 
Pages: 3545-3559 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701493733 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3545-3559




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Burton 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Burton 
Author-Name: Katherine Carson 
Author-X-Name-First: Katherine 
Author-X-Name-Last: Carson 
Author-Name: Susan Chilton 
Author-X-Name-First: Susan 
Author-X-Name-Last: Chilton 
Author-Name: W. George Hutchinson 
Author-X-Name-First: W. 
Author-X-Name-Last: George Hutchinson 
Title: Why do people non-demand reveal in hypothetical double referenda for public goods? 
Abstract:
  Hypothetical contingent valuation surveys used to elicit values for
 environmental and other public goods often employ variants of the
 referendum mechanism due to the cognitive simplicity and familiarity of
 respondents with this voting format. One variant, the double referendum
 mechanism, requires respondents to state twice how they would vote for a
 given policy proposal given their cost of the good. Data from these
 surveys often exhibit anomalies inconsistent with standard economic models
 of consumer preferences. There are a number of published explanations for
 these anomalies, mostly focusing on problems with the second vote. This
 article investigates which aspects of the hypothetical task affect the
 degree of nondemand revelation and takes an individual-based approach to
 identifying people most likely to non-demand reveal. A clear profile
 emerges from our model of a person who faces a negative surplus i.e. a net
 loss in the second vote and invokes non self-interested, non financial
 motivations during the decision process. 
Journal: Applied Economics 
Pages: 3561-3569 
Issue: 27 
Volume: 41 
Year: 2009 
X-DOI: 10.1080/00036840701537802 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537802 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3561-3569




Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Sekkel 
Author-X-Name-First: Rodrigo 
Author-X-Name-Last: Sekkel 
Author-Name: Denisard Alves 
Author-X-Name-First: Denisard 
Author-X-Name-Last: Alves 
Title: The economic determinants of the Brazilian nominal term structure of interest rates 
Abstract:
  The purpose of this study is to identify the effects of monetary policy
 and macroeconomic shocks on the dynamics of the Brazilian term structure
 of interest rates. We estimate a near-VAR model under the identification
 scheme proposed by Christiano et al. (1996, 1999). The results resemble
 those of the US economy: monetary policy shocks that flatten the term
 structure of interest rates. We find that monetary policy shocks in Brazil
 explain a significantly larger share of the dynamics of the term structure
 than in the USA. Finally, we analyse the importance of standard
 macroeconomic variables (e.g. GDP, inflation and measure of country risk)
 to the dynamics of the term structure in Brazil. 
Journal: Applied Economics 
Pages: 1-10 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579226 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579226 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:1-10




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow 
Author-X-Name-First: Michael 
Author-X-Name-Last: Marlow 
Title: The influence of private school enrollment on public school performance 
Abstract:
  School choice reform refers to changes that allow parents greater freedom
 to choose schools for their children. School choice reform is contentious
 because it fundamentally alters the environment in which public and
 private schools operate and could result in significant changes for both
 demanders and suppliers of education. This article develops a model of
 public education with imperfect exit to predict how private school
 enrollment influences performance of public schools. Empirical evidence
 from data on all private and public schools in California provides
 substantial support for the hypothesis that public school test scores are
 inversely related to private school enrollments and charter school
 enrollments when private and charter schooling reflects exiting by parents
 unhappy with local public schools. Implications regarding how expanded
 private school choice might influence public school performance in
 California and elsewhere are discussed. 
Journal: Applied Economics 
Pages: 11-22 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701564418 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564418 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:11-22




Template-Type: ReDIF-Article 1.0
Author-Name: Vera Lucia Fava 
Author-X-Name-First: Vera Lucia 
Author-X-Name-Last: Fava 
Title: Price dispersion and price indexes 
Abstract:
  The traditional theory of price index numbers is based on the law of one
 price. But in the real world, we frequently observe the existence of an
 equilibrium price dispersion instead of one price of equilibrium. This
 article discusses the effects of price dispersion on two price indexes:
 the cost of living index and the consumer price index. With price
 dispersion and consumer searching for the lowest price, these indexes
 cannot be interpreted as deterministic indicators, but as stochastic
 indicators, and they can be biased if price dispersion is not taken into
 account. A measure for the bias of the consumer price index is proposed
 and the article ends with an estimation of the bias based on data obtained
 from the consumer price index calculated for the city of Sao Paulo,
 Brazil, from January 1988 through December 2004. The period analysed is
 very interesting, because it exhibits different inflationary environments:
 high levels and high volatility of the rates of inflation with great price
 dispersion until July 1994 and low and relatively stable rates of
 inflation with prices less dispersed after August 1994. 
Journal: Applied Economics 
Pages: 23-36 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579168 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579168 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:23-36




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Robson 
Author-X-Name-First: Paul 
Author-X-Name-Last: Robson 
Author-Name: Robert Bennett 
Author-X-Name-First: Robert 
Author-X-Name-Last: Bennett 
Title: Paying fees for government business advice: an assessment of Business Link experience 
Abstract:
  Business Link (BL) in Britain provides a unique opportunity to examine a
 government policy support to small firms which has targeted fee income as
 a major part of its management objectives in order to increase the 'sense
 of value' of the services offered. This article examines the influence of
 fees on client impact and satisfaction. It finds that fees have no
 significant relationship with client satisfaction or impact. Government
 targets and manager/advisor policies have, therefore, been wrong to pursue
 an explicit fee-based targeting strategy. Instead, satisfaction and impact
 are most significantly influenced by the character of the BL provider,
 being significantly higher for franchises managed by chambers of commerce
 and other agents, and being poorer for independent stand-alone providers.
 Service type has a significant influence on the propensity to charge a fee
 and on service impact. Small- and medium-sized enterprises characteristics
 have little influence on client evaluations. The policy implication is
 that advisors should focus on what they do best and can quality assure; in
 other cases, they should use referral to other professional advisors. The
 scope to raise fees from government advice services is, therefore,
 opportunistic and limited, and should not be incentivized. 
Journal: Applied Economics 
Pages: 37-48 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579184 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579184 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:37-48




Template-Type: ReDIF-Article 1.0
Author-Name: Takashi Ishida 
Author-X-Name-First: Takashi 
Author-X-Name-Last: Ishida 
Author-Name: Noriko Ishikawa 
Author-X-Name-First: Noriko 
Author-X-Name-Last: Ishikawa 
Author-Name: Mototsugu Fukushige 
Author-X-Name-First: Mototsugu 
Author-X-Name-Last: Fukushige 
Title: Impact of BSE and bird flu on consumers' meat demand in Japan 
Abstract:
  In this article, we investigate the impact of BSE and bird flu on
 consumers' meat demand in Japan by using the 'almost ideal' demand system.
 The BSE and bird flu scares brought about a fall in demand for beef and
 chicken, respectively, and an upturn in demand for pork and fishery
 products, which are substitutes for beef and chicken in Japan. We also
 find that the bird flu outbreak had no impact on the market share for
 beef. This suggests that BSE had a larger impact on consumers' meat demand
 than did bird flu. Our empirical results also show that BSE has had a
 persistent impact whereas, bird flu has not. These differences might
 depend on the characteristics of each disease, such as the incubation
 period, cure rate and infection risk. 
Journal: Applied Economics 
Pages: 49-56 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701564392 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564392 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:49-56




Template-Type: ReDIF-Article 1.0
Author-Name: Rabindra Bhandari 
Author-X-Name-First: Rabindra 
Author-X-Name-Last: Bhandari 
Author-Name: Kamal Upadhyaya 
Author-X-Name-First: Kamal 
Author-X-Name-Last: Upadhyaya 
Title: Panel data evidence of the impact of exchange rate uncertainty on private investment in South-east Asia 
Abstract:
  This article examines the impact of real exchange rate uncertainty on the
 private investment in South-east Asia using panel data from four countries
 of the region namely, Indonesia, Malaysia, the Philippines and Thailand.
 Annual time series data from 1972 to 2001 is used. Before carrying out the
 estimation the time series properties of the data are diagnosed and an
 error correction model is developed and estimated. The model is estimated
 using both the fixed effects and the random effects estimators. The
 estimated results from both the estimations, suggest that the real
 exchange rate uncertainty had a negative effect on the private investment
 in that region. 
Journal: Applied Economics 
Pages: 57-61 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701564400 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564400 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:57-61




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Gripaios 
Author-X-Name-First: Peter 
Author-X-Name-Last: Gripaios 
Author-Name: Paul Bishop 
Author-X-Name-First: Paul 
Author-X-Name-Last: Bishop 
Author-Name: Steven Brand 
Author-X-Name-First: Steven 
Author-X-Name-Last: Brand 
Title: A lottery within a lottery? An examination of the distribution of lottery funds in England 
Abstract:
  The UK National Lottery has been in operation since 1994. An examination
 of the regional distribution of awards per head of population suggests
 marked spatial disparities with London doing particularly well and
 Scotland, Northern Ireland, Wales and the North East faring much better
 than other regions. Such disparities also exist at English Local Authority
 level with London and some major provincial centres doing much better than
 more rural authorities. Such inequalities may give grounds for concern,
 given that they appear to replicate those for other types of Government
 spending. The results of an empirical model designed to explain the
 spatial distribution of awards suggest that, in addition to a London
 effect, levels of deprivation have a positive impact. Another important
 explanatory variable which has a positive impact on lottery funding is the
 qualifications of residents which might plausibly reflect the quality of
 lottery bids received from an area. However, once these factors are taken
 account of, there is little evidence that rural areas fare badly. 
Journal: Applied Economics 
Pages: 63-71 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701564426 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564426 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:63-71




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Title: Time-series econometrics of growth-models: a guide for applied economists 
Abstract:
  This article examines the use of specifications based on the endogenous
 and exogenous growth-models for country-specific growth policies. It is
 suggested that time-series models based on the Solow (1956) exogenous
 growth-model are useful and they can also be extended to capture the
 permanent growth-effects of some variables. Our empirical results, with
 data from Fiji, show that trade openness and human capital have
 significant and permanent growth-effects. However, these growth-effects
 are small and eventually converge over time. 
Journal: Applied Economics 
Pages: 73-86 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701564434 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564434 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:73-86




Template-Type: ReDIF-Article 1.0
Author-Name: Russel Cooper 
Author-X-Name-First: Russel 
Author-X-Name-Last: Cooper 
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Title: Estimating components of ICT expenditure: a model-based approach with applicability to short time-series 
Abstract:
  This article develops a microeconomic model-based approach to estimation
 of national information and communications technology expenditure that is
 helpful when only very short time-series are available. The model
 specification incorporates parameters for network effects and national
 e-readiness. Finally, the model allows for observed nonhomotheticity and
 'noise' found in sample data, with the latter attributed to
 country-specific influences. 
Journal: Applied Economics 
Pages: 87-96 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701564442 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564442 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:87-96




Template-Type: ReDIF-Article 1.0
Author-Name: Ho Shirley 
Author-X-Name-First: Ho 
Author-X-Name-Last: Shirley 
Title: Social norms and emission tax multiple equilibria in adopting pollution abatement device 
Abstract:
  The effect of social norm is addressed in an adoption game, where an
 emission tax is used to motivate oligopolistic firms to adopt a pollution
 abatement device. We ask if the intrinsic motivation from social norm
 alone can motivate firms to participate in adoption. The multiple
 equilibria in the adoption game indicates two possibilities: this
 intrinsic motivation may or may not enhance adoption. The existing
 literature on equilibrium selection further suggests that the most likely
 outcome is that it cannot enhance adoption. Next, by keeping the
 assumption of symmetry, we show that if cooperation is an option for
 firms, then the presence of two coordination effects (social norm on
 adoption and cooperation benefits on output) will result in the existence
 of asymmetric adoptions. 
Journal: Applied Economics 
Pages: 97-105 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701537844 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537844 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:97-105




Template-Type: ReDIF-Article 1.0
Author-Name: Eric Szu-Wen Chou 
Author-X-Name-First: Eric Szu-Wen 
Author-X-Name-Last: Chou 
Title: Can socialism in internal capital markets occur in the absence of managerial rent seeking? 
Abstract:
  Socialism in internal capital markets (SICM) is the phenomenon whereby
 multi-division firms underinvest in high-profit segments and overinvest in
 low-profit segments. This article modifies and extends the Scharfstein and
 Stein (2000) model that explains SICM. The major modification is to
 abstract from rent-seeking behaviour - a central ingredient that is used
 by most SICM models and has the side effect of overturning SICM when the
 underlying rent-seeking game is slightly perturbed. It is shown that when
 division managers' private benefits are not exactly propotional to their
 division's production profit, as assumed by Scharfstein and Stein (2000),
 SICM arises due to the CEO's incentive to extract gain from the trade of
 capital between his division managers by equalizing their marginal private
 benefits, instead of accommodating rent-seeking. Furthermore, we show that
 'diversification discounts' exist, increase in diversity and decrease in
 CEO ownership. The results are robust to endogenizing the investors'
 choice of the total capital provided to the firm, which allows the
 conditions for aggergate underinvestment or overinvestment to be
 determined. 
Journal: Applied Economics 
Pages: 107-120 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579150 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579150 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:107-120




Template-Type: ReDIF-Article 1.0
Author-Name: Shyh-Wei Chen 
Author-X-Name-First: Shyh-Wei 
Author-X-Name-Last: Chen 
Title: Testing the hypothesis of market efficiency in the Taiwan-US forward exchange market since 1990 
Abstract:
  This article examines the applicability of the hypothesis of market
 efficiency in Taiwan's foreign exchange market using daily data. Instead
 of linear regression-based models, we consider the possibility that the
 true data generating process may come from two different distributions,
 and we employ the Markov Switching approach to analyse this. From the
 results of the two-state Markov Switching model, we define State 1 as the
 efficient state and State 2 as the inefficient one. Only the 30-day
 forward rate is able to differentiate between the two states. Based on the
 unconditional probabilities from the Markov switching model, we also find
 that the 30-day forward rate has a 70% probability in the efficient state,
 which indicates that 70% of all speculators fully extract information when
 predicting future spot rates, while 30% of all investors do not. 
Journal: Applied Economics 
Pages: 121-132 
Issue: 1 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579200 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579200 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:121-132




Template-Type: ReDIF-Article 1.0
Author-Name: Sheila Amin Gutierrez de Pineres 
Author-X-Name-First: Sheila Amin Gutierrez de 
Author-X-Name-Last: Pineres 
Author-Name: Manuel Cantavella-Jorda 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Cantavella-Jorda 
Title: Short-run effects of devaluation: a disaggregated analysis of Latin American exports 
Abstract:
  Conventional models examining the relationship between devaluation and
 exports are based on exchange rate pass through. These suggest that after
 devaluation exports become cheaper, relative to other exports, and the
 growing export market is posited to stimulate the economy. If devaluation
 has a differential effect across commodities, countries can expect
 different results depending on their portfolios. Therefore, any accurate
 analysis of the effects of devaluation must take into account the
 components of a country's export portfolio. The pooled time series
 estimation for Latin American countries reveals a negative short-run
 relationship between real devaluation and export growth for most exports
 at a disaggregated level. The results of this study are far reaching as
 they suggest that more targeted policies are better suited to stimulate
 exports. 
Journal: Applied Economics 
Pages: 133-142 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579259 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579259 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:133-142




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Preckel 
Author-X-Name-First: Paul 
Author-X-Name-Last: Preckel 
Author-Name: J. A. L. Cranfield 
Author-X-Name-First: J. A. L. 
Author-X-Name-Last: Cranfield 
Author-Name: Thomas Hertel 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Hertel 
Title: A modified, implicit, directly additive demand system 
Abstract:
  A recently developed demand system, nicknamed AIDADS (An Implicit,
 Directly Additive Demand System), offers an approach to capturing consumer
 preferences across a wide range of expenditure levels. AIDADS generalizes
 the LES by assuming marginal budget shares vary with utility and hence
 with expenditure. Like the LES, AIDADS includes subsistence parameters
 that define minimum consumption levels. Here we present a modified AIDADS
 (MAIDADS) that replaces the constant subsistence parameters with functions
 that also vary with utility; these transformed subsistence levels are
 referred to as minimum consumption quantities. This model is applied to
 the 1996 International Consumption Project data. As these data span a wide
 range of expenditure levels, MAIDADS offers a viable alternative for the
 estimation of a 'global demand system'. Results suggest minimum
 consumption quantities for staple grains, livestock, other food products,
 alcohol and tobacco, clothing and footwear and transport and transport
 services vary with expenditure, while those for rent and fuel and
 household furnishings and operations are zero and invariant across
 expenditure levels. Only the minimum consumption quantity for staple
 grains declines with expenditure. 
Journal: Applied Economics 
Pages: 143-155 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701591361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701591361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:143-155




Template-Type: ReDIF-Article 1.0
Author-Name: Awudu Abdulai 
Author-X-Name-First: Awudu 
Author-X-Name-Last: Abdulai 
Title: Socio-economic characteristics and obesity in underdeveloped economies: does income really matter? 
Abstract:
  Available evidence suggests that overweight and obesity prevalence is
 increasing worldwide at an alarming rate in both developed and developing
 countries. This study focuses on the determinants of overweight in mothers
 and children, using a unique dataset collected in urban Accra, in Ghana.
 The findings show that mothers' education, employment status and ethnicity
 significantly exert influence on the generation of body weight. In
 particular, those who attained secondary and tertiary education had lower
 body mass indices and were much less likely to be overweight or obese,
 lending support to the notion that more educated women normally have
 better health knowledge and are more likely to consume healthy foods and
 also engage in physical exercises that help to control weight gain.
 Mother's education was also found to exert a negative and significant
 impact on the weight status of children. Furthermore, household
 expenditure was found to exert a positive and significant impact on the
 probability of a mother being overweight or obese, but no significant
 impact on the probability of a child being overweight. 
Journal: Applied Economics 
Pages: 157-169 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604313 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604313 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:157-169




Template-Type: ReDIF-Article 1.0
Author-Name: Ricard Gil 
Author-X-Name-First: Ricard 
Author-X-Name-Last: Gil 
Title: An empirical investigation of the Paramount antitrust case 
Abstract:
  Production patterns in the US movie industry changed drastically between
 1940 and 1960. During these decades, a major event took place: the
 Paramount antitrust case was resolved by the US Supreme Court in 1948. As
 a result, the five largest studios (MGM, Paramount, 20th Century Fox,
 Warner Brothers and RKO) were forced to vertically disintegrate and
 separate production and distribution from exhibition. The Supreme Court
 also banned these and three other studios (Columbia, Universal and United
 Artists) from using block booking as contractual practice. In this
 article, I examine how this antitrust ruling affected the movie industry. 
Journal: Applied Economics 
Pages: 171-183 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604404 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604404 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:171-183




Template-Type: ReDIF-Article 1.0
Author-Name: P. Holmes 
Author-X-Name-First: P. 
Author-X-Name-Last: Holmes 
Author-Name: A. Hunt 
Author-X-Name-First: A. 
Author-X-Name-Last: Hunt 
Author-Name: I. Stone 
Author-X-Name-First: I. 
Author-X-Name-Last: Stone 
Title: An analysis of new firm survival using a hazard function 
Abstract:
  A unique data set is used to provide a detailed examination of the
 survival of newly established manufacturing firms in north-east England.
 Using data on 781 firms established between 1973 and 2001, log-logistic
 hazard models are estimated separately for (i) micro-enterprises and (ii)
 small and medium establishments (SMEs). Both micro-enterprises and SMEs
 show clear evidence of positive duration dependence, followed by negative
 duration dependence. We find the two firm types are differentially
 affected by firm-specific and macro-economic variables. Increases in
 initial plant size impact negatively on micro-enterprise survival and
 positively on SME survival. 
Journal: Applied Economics 
Pages: 185-195 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579234 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579234 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:185-195




Template-Type: ReDIF-Article 1.0
Author-Name: Sanja Samirana Pattnayak 
Author-X-Name-First: Sanja Samirana 
Author-X-Name-Last: Pattnayak 
Author-Name: Shandre Thangavelu 
Author-X-Name-First: Shandre 
Author-X-Name-Last: Thangavelu 
Title: Economic liberalization and productivity for selected Indian manufacturing industries: a panel cointegration approach 
Abstract:
  This article estimates the long-run production function for a panel of
 13Indian manufacturing industries for the period 1981 to 1998. To account
 for nonstationarity and to avoid spurious regression problems, the panel
 unit-roots tests as suggested by Im et al. (2003) and the panel
 cointegration techniques as proposed by Pedroni (1999) were used. The
 generalized methods of moments (GMM) estimation methodology as suggested
 by Arellano and Bond (1991) and Blundell and Bond (2000), were used to
 deal with the simultaneity bias introduced by measurement errors. Based on
 the panel cointegration test, we found evidence of long-run production
 relationship for all the selected industries. We also observe increasing
 returns to scale in 3 out of 13 industries under study. However, comparing
 the pre- and post-liberalization periods, there are improvements in total
 factor productivity (TFP) in 9 out of 13 industries in the
 post-liberalization period of 1991 to 1998. This clearly supports the
 observations that there are significant economic improvements in the
 recent Indian economic reforms. 
Journal: Applied Economics 
Pages: 197-209 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604321 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604321 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:197-209




Template-Type: ReDIF-Article 1.0
Author-Name: Hirokatsu Asano 
Author-X-Name-First: Hirokatsu 
Author-X-Name-Last: Asano 
Title: Estimating irreversible investment with financial constraints: an application of switching regression models 
Abstract:
  This analysis investigates irreversible investment with financial
 constraints. When investment is irreversible, zero investment can be
 optimal and investment becomes lumpy. Because external funds are not a
 perfect substitute for internal funds, financially constrained firms
 invest differently than unconstrained firms. To incorporate both
 irreversibility and financial constraints into estimations, the analysis
 develops a switching regression model that depends on the real options
 theory of capital investment. The analysis investigates three US
 industries: the oil refining, communications equipment manufacturing and
 semiconductor manufacturing industries. The analysis shows that internal
 funds affect investment if a firm is financially constrained. 
Journal: Applied Economics 
Pages: 211-222 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579218 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579218 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:211-222




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Luis Miralles-Marcelo 
Author-X-Name-First: Jose Luis 
Author-X-Name-Last: Miralles-Marcelo 
Author-Name: Jose Luis Miralles-Quiros 
Author-X-Name-First: Jose Luis 
Author-X-Name-Last: Miralles-Quiros 
Author-Name: Maria del Mar Miralles-Quiros 
Author-X-Name-First: Maria del Mar 
Author-X-Name-Last: Miralles-Quiros 
Title: Intraday linkages between the Spanish and the US stock markets: evidence of an overreaction effect 
Abstract:
  This paper focuses on short-term information transmission between the US
 stock market, properly the DOW index, and the main Spanish stock index,
 IBEX-35, in its early and final hours. We follow the approaches of Lin,
 Engle and Ito (1994), Susmel and Engle (1994) and Baur and Jung (2005) who
 use a GARCH model to analyze the influence of the previous daytime and
 overnight returns and volatility of the DOW upon the overnight returns and
 daytime returns of the IBEX from Open-to-3:30 and from 3:30-to-Close. The
 results suggest that the Spanish stock market usually has a low price
 movement till Wall Street opens. Additionally, they indicate that the
 Spanish market reacts quickly to the news, basically in the first four
 minutes following the opening of the US market. Furthermore, we find the
 existence of an overreaction effect during the two hours before the
 closing of the Spanish market. 
Journal: Applied Economics 
Pages: 223-235 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579192 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579192 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:223-235




Template-Type: ReDIF-Article 1.0
Author-Name: Zisimos Koustas 
Author-X-Name-First: Zisimos 
Author-X-Name-Last: Koustas 
Author-Name: Jean-Francois Lamarche 
Author-X-Name-First: Jean-Francois 
Author-X-Name-Last: Lamarche 
Title: Evidence of nonlinear mean reversion in the real interest rate 
Abstract:
  This article utilizes tests for a unit root that have power against
 nonlinear alternatives to provide empirical evidence on the time series
 properties of the ex-post real interest rate in the G7 countries. We find
 that the unit root hypothesis can be rejected in the presence of a
 nonlinear alternative motivated by theoretical literature on optimal
 monetary policy rules. This represents a reversal of the results obtained
 using standard linear unit-root and cointegration tests. Tests for
 linearity reject this hypothesis for Canada, France, Italy and Japan for
 which we estimate nonlinear models capturing the dynamics of the interest
 rate. For these countries, ex-post real interest rates follow a nonlinear
 model characterized by mean reversion and provide statistical evidence for
 the Fisher effect. 
Journal: Applied Economics 
Pages: 237-248 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701579242 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579242 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:237-248




Template-Type: ReDIF-Article 1.0
Author-Name: Isolde Woittiez 
Author-X-Name-First: Isolde 
Author-X-Name-Last: Woittiez 
Author-Name: Edwin Van Gameren 
Author-X-Name-First: Edwin 
Author-X-Name-Last: Van Gameren 
Title: The effect of care leave on burden and job performance 
Abstract:
  In this article the expected effects of the introduction of a fully paid
 long-term care leave programme in the Netherlands are investigated. In
 particular we are interested in the effects on perceived burden and job
 performance. We analyse data from a survey among workers who care for a
 person in their social circle for longer than two weeks. The caring
 workers with a high perceived burden and intention to participate in the
 programme were asked questions regarding the expected effects on burden.
 An econometric model in which we account for these two potentially
 nonrandom selection mechanisms is set up to analyse the expected reduction
 in burden due to the intended take-up of care leave. As a result of the
 introduction of the programme about 60% of the intended participants who
 perceive a high burden expect a reduction in their burden. The relation
 between burden and job performance shows that the programme would reduce
 the number of caring workers who perform less precise in their job by
 one-third. A modified version of the programme with more stringent
 requirements than analysed in this article was introduced in The
 Netherlands in 2005. 
Journal: Applied Economics 
Pages: 249-266 
Issue: 2 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604347 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604347 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:249-266




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Rajarshi Mitra 
Author-X-Name-First: Rajarshi 
Author-X-Name-Last: Mitra 
Title: How sensitive is commodity trade flows between US and India to currency depreciation? 
Abstract:
  Previous studies that investigated the impact of real depreciation of the
 rupee on Indian trade balance used aggregate trade data and provided no
 support for real depreciation to be effective in improving India's trade
 balance. In this article we disaggregate the Indian trade data by
 commodity and consider the sensitivity of each industry's inpayments
 (export value) and outpayments (import value) to real rupee-dollar
 exchange rate. Annual data over the period of 1962 to 2004 from 40
 industries that trade between the two countries as well as bounds testing
 approach are used to show that while in half of the industries real
 depreciation of rupee has short-run effects on inpayments and outpayments,
 the short-run effects do not last into the long-run in majority of the
 cases. 
Journal: Applied Economics 
Pages: 267-277 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604453 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604453 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:267-277




Template-Type: ReDIF-Article 1.0
Author-Name: W. Groot 
Author-X-Name-First: W. 
Author-X-Name-Last: Groot 
Author-Name: H. M. van den Brink 
Author-X-Name-First: H. M. 
Author-X-Name-Last: van den Brink 
Title: The effects of education on crime 
Abstract:
  In this article, we use a unique data set on criminal behaviour to
 analyse the effects of education on offences and crimes committed. The
 findings suggest that substantial savings on the social costs of crime can
 be obtained by investing in education. We find that the probability of
 committing crimes like shop lifting, vandalism and threat, assault and
 injury decrease with years of education. The probability of committing tax
 fraud, however, increases with years of education. We further find that
 higher educated people have more permissive attitudes and social norms
 towards criminal behaviour. 
Journal: Applied Economics 
Pages: 279-289 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604412 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604412 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:279-289




Template-Type: ReDIF-Article 1.0
Author-Name: Akbar Marvasti 
Author-X-Name-First: Akbar 
Author-X-Name-Last: Marvasti 
Title: A welfare estimation of beach recreation with aggregate data 
Abstract:
  A single-site travel cost recreation demand model for a representative
 agent visiting a beach is employed that uses an indirect utility function.
 Alternative specifications of the expected demand function are estimated
 with aggregate time-series data from a local beach park. The estimated
 parameters are used to compute the value of the consumer surplus. The
 recreational value of the park is expectedly sensitive to the functional
 form used. Also, own-price and income elasticities for various functional
 forms vary. The results from the Box-Cox procedure suggest that the
 semi-log function is the most appropriate for the data used in this study.
 Confidence intervals are calculated to deal with the reliability problem
 of the consumer surplus estimates. An alternative algorithm, which assumes
 omitted variable as the source of the error in the demand function, is
 also presented. 
Journal: Applied Economics 
Pages: 291-296 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802498813 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802498813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:291-296




Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Granier 
Author-X-Name-First: Laurent 
Author-X-Name-Last: Granier 
Author-Name: Sebastien Trinquard 
Author-X-Name-First: Sebastien 
Author-X-Name-Last: Trinquard 
Title: Entry deterrence and mergers under price competition in pharmaceutical markets 
Abstract:
  After patent expirations in pharmaceutical markets, brand-name
 laboratories are threatened by generic firms' entry. To fill the gap in
 the theoretical literature on this topic, we study brand-name firms'
 incentives either to deter entry, or to merge with the entrant. These
 strategies are considered along with the possibility of the brand-name
 firm producing its own generic drug, called a pseudo-generic drug. Using a
 vertical differentiation model with Bertrand-Stackelberg competition, we
 show that each strategy, merging and deterring entry, may be Nash
 equilibrium, according to the generic firm's setup cost level and to the
 rate of discount. 
Journal: Applied Economics 
Pages: 297-309 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604495 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604495 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:297-309




Template-Type: ReDIF-Article 1.0
Author-Name: Gerhard Reichmann 
Author-X-Name-First: Gerhard 
Author-X-Name-Last: Reichmann 
Author-Name: Margit Sommersguter-Reichmann 
Author-X-Name-First: Margit 
Author-X-Name-Last: Sommersguter-Reichmann 
Title: Efficiency measures and productivity indexes in the context of university library benchmarking 
Abstract:
  Data envelopment analysis (DEA) has attracted considerable attention
 during the last few decades as an intuitively clear method for performance
 assessment. Theoretical developments have taken turns with empirical
 efficiency studies. In this paper we empirically analyse performance
 differences across university libraries from different countries from a
 cross-section and a longitudinal perspective. We use the Malmquist index
 approach to disentangle environmental efficiency from technical efficiency
 (TE) to highlight performance differences eventually induced by
 environmental factors beyond the control of library management, as well as
 to decompose productivity changes over time into changes in TE and changes
 in technology. In our cross-section analysis we found that North American
 (NA) libraries are more productive at higher input levels than the
 European libraries from Germany and Austria at which we looked in this
 contribution. Moreover, the largest NA libraries are still able to improve
 performance, as the results of panel data analysis revealed. 
Journal: Applied Economics 
Pages: 311-323 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604511 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604511 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:311-323




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Evidence on PPP for selected Asian countries from a panel cointegration test with structural breaks 
Abstract:
  The goal of this article is to examine evidence for purchasing power
 parity (PPP) for a panel of Asian countries, namely Malaysia, Thailand,
 India, Pakistan, Sri Lanka and the Philippines. Our main contribution is
 that for the first time in this literature we use a panel cointegration
 test, developed by Westerlund (2006), which allows us to incorporate
 multiple structural breaks. We find that using Gregory and Hansen's (1996)
 residual-based test for cointegration and Pedroni's (1999) panel
 cointegration test without structural breaks provide weak evidence of
 cointegration between nominal exchange rates vis-a-vis the US dollar and
 relative prices. However, when we use the Lagrange multiplier panel
 structural break cointegration test we find strong evidence of panel
 cointegration, providing evidence for PPP. 
Journal: Applied Economics 
Pages: 325-332 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604446 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604446 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:325-332




Template-Type: ReDIF-Article 1.0
Author-Name: David Scrogin 
Author-X-Name-First: David 
Author-X-Name-Last: Scrogin 
Author-Name: Richard Hofler 
Author-X-Name-First: Richard 
Author-X-Name-Last: Hofler 
Author-Name: Kevin Boyle 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Boyle 
Author-Name: J. Walter Milon 
Author-X-Name-First: J. 
Author-X-Name-Last: Walter Milon 
Title: An efficiency approach to choice set formation: theory and application to recreational destination choice 
Abstract:
  An unresolved debate in behavioural choice research surrounds specifying
 individual choice sets. To overcome the limitations of deterministic and
 probabilistic approaches in a framework consistent with individual
 optimizing behaviour, this study develops an efficient frontiers approach
 to the choice set problem in the context of revealed preference
 destination choice. Stochastic frontier models relating costly inputs to
 utility generating outputs are estimated to measure the efficiency of
 sites; choice sets are then formed by retaining sites that exceed
 alternative efficiency thresholds. Choice set composition, site choice
 efficiency and probability of selection and consumer surplus are evaluated
 in the case of fishery site choice in Maine. 
Journal: Applied Economics 
Pages: 333-350 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604438 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604438 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:333-350




Template-Type: ReDIF-Article 1.0
Author-Name: Laurence Mathieu 
Author-X-Name-First: Laurence 
Author-X-Name-Last: Mathieu 
Author-Name: Catherine Waddams Price 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Waddams Price 
Author-Name: Francis Antwi 
Author-X-Name-First: Francis 
Author-X-Name-Last: Antwi 
Title: The distribution of UK personal income tax compliance costs 
Abstract:
  Governments are committed to reducing the regulatory burden on business
 and individuals, while at the same time transferring many tasks from
 bureaucrats. One such example is tax compliance where self-assessment (SA)
 has raised concerns that such transfers may place a particularly heavy
 burden on lower income and elderly taxpayers. This is the first study
 since its introduction into the UK in 1996 of the regulatory burden, which
 SA imposes on individuals. We identify both the total compliance burden
 and its components for individuals who might be expected to incur high
 compliance costs because they pay tax on nonbusiness employment income. We
 use a specially designed questionnaire and find that within this group the
 burden seems to have increased by less than 25%. Compliance costs are
 regressive, but do not impinge disproportionately on the elderly. The
 compliance burden is determined by income, occupation, education (but not
 specifically in accounting subjects) and difficulty in attending to tax
 affairs, indicating some possibilities for reducing these compliance
 costs. 
Journal: Applied Economics 
Pages: 351-368 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604370 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604370 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:351-368




Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Bikker 
Author-X-Name-First: Jacob 
Author-X-Name-Last: Bikker 
Author-Name: Laura Spierdijk 
Author-X-Name-First: Laura 
Author-X-Name-Last: Spierdijk 
Author-Name: Pieter-Jelle van der Sluis 
Author-X-Name-First: Pieter-Jelle 
Author-X-Name-Last: van der Sluis 
Title: What factors increase the risk of incurring high market impact costs? 
Abstract:
  This article applies quantile regression to assess the factors that
 influence the risk of incurring high trading costs. Using data on the
 equity trades of the world's second largest pension fund in the first
 quarter of 2002, we show that trade timing, momentum, volatility and the
 type of broker intermediation are the major determinants of the risk of
 incurring high trading costs. Such risk is increased substantially by
 either high or low momentum and by strong volatility. Moreover, agency
 trades are substantially more risky in terms of trading costs than similar
 principal trades. Finally, we show that the quantile regression model
 succeeds well in forecasting future trading costs. 
Journal: Applied Economics 
Pages: 369-387 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604461 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604461 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:369-387




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Liang Yeh 
Author-X-Name-First: Ming-Liang 
Author-X-Name-Last: Yeh 
Author-Name: Hsiao-Ping Chu 
Author-X-Name-First: Hsiao-Ping 
Author-X-Name-Last: Chu 
Author-Name: Peter Sher 
Author-X-Name-First: Peter 
Author-X-Name-Last: Sher 
Author-Name: Yi-Chia Chiu 
Author-X-Name-First: Yi-Chia 
Author-X-Name-Last: Chiu 
Title: R&D intensity, firm performance and the identification of the threshold: fresh evidence from the panel threshold regression model 
Abstract:
  This article tests whether there is an optimal level of research and
 development (R&D) intensity at which point a firm is able to maximize its
 performance. An advanced panel threshold regression model is employed to
 investigate the panel threshold effect of R&D intensity on firm
 performance among publicly traded Taiwan information technology and
 electronic firms. The results confirm that a single-threshold effect does
 exist and show an inverted-U correlation between R&D intensity and firm
 performance. This article demonstrates that it is possible to identify the
 definitive level beyond which a further increase in R&D expenditure does
 not yield proportional rewards. Some important policy implications emerge
 from the findings. 
Journal: Applied Economics 
Pages: 389-401 
Issue: 3 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604487 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604487 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:389-401




Template-Type: ReDIF-Article 1.0
Author-Name: Chulho Jung 
Author-X-Name-First: Chulho 
Author-X-Name-Last: Jung 
Author-Name: William Shambora 
Author-X-Name-First: William 
Author-X-Name-Last: Shambora 
Author-Name: Kyongwook Choi 
Author-X-Name-First: Kyongwook 
Author-X-Name-Last: Choi 
Title: Are stocks really riskier than bonds? 
Abstract:
  Conventional wisdom holds that stocks are riskier than bonds; thus when
 the stock market becomes volatile, money flows from the stock market into
 the perceived safe haven of the bond market. In this article, we find that
 this notion is not necessarily accurate and might lead people to make
 incorrect investment decisions. In fact, intermediate- and long-term bonds
 are riskier than stocks when we measure risk by the coefficient of
 variation. We examine a case where an inaccurate perception regarding the
 relative riskiness of the two types of assets could play a part in what
 appears to be short-sighted and potentially costly behaviour of investors
 in financial markets. 
Journal: Applied Economics 
Pages: 403-412 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704386 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704386 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:403-412




Template-Type: ReDIF-Article 1.0
Author-Name: Panagiotis Kasteridis 
Author-X-Name-First: Panagiotis 
Author-X-Name-Last: Kasteridis 
Author-Name: Murat Munkin 
Author-X-Name-First: Murat 
Author-X-Name-Last: Munkin 
Author-Name: Steven Yen 
Author-X-Name-First: Steven 
Author-X-Name-Last: Yen 
Title: Demand for cigarettes: a mixed binary-ordered probit approach 
Abstract:
  This study analyses the demand for cigarettes fitting observed zero
 outcomes with a trivariate model consisting of an equation for the
 starting smoking decision, an equation for the quitting decision, and an
 equation that models the level of cigarettes consumed. Five competing
 specifications are considered to explain level, with the ordered probit,
 which accommodates pile-ups of counts in the dependent variable, providing
 the best fit. Marginal effects of explanatory variables are calculated
 providing strong evidence of race and gender differences in consumption
 patterns. The estimated marginal effects are robust to alternative
 categorizations of the level of cigarettes. 
Journal: Applied Economics 
Pages: 413-426 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704402 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704402 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:413-426




Template-Type: ReDIF-Article 1.0
Author-Name: David Dorn 
Author-X-Name-First: David 
Author-X-Name-Last: Dorn 
Author-Name: Alfonso Sousa-Poza 
Author-X-Name-First: Alfonso 
Author-X-Name-Last: Sousa-Poza 
Title: 'Voluntary' and 'involuntary' early retirement: an international analysis 
Abstract:
  Recent literature makes a distinction between 'voluntary' and
 'involuntary' early retirement, where 'involuntary' early retirement
 results from employment constraints rather than from a preference for
 leisure relative to work. This article analyses 'voluntary' and
 'involuntary' early retirement based on international microdata covering
 19 industrialized countries. The results show that 'involuntary' early
 retirement is particularly widespread in Continental Europe. Countries
 facing economic recessions and having strict employment protection
 legislation have higher shares of 'involuntary' retirements among early
 retirees. Generous early retirement provisions of the social security
 system do not only make 'voluntary' early retirement more attractive for
 individuals, but also induce firms to push more employees to retire early. 
Journal: Applied Economics 
Pages: 427-438 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701663277 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701663277 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:427-438




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Lange 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Lange 
Title: Sources of regime switching in short-term interest rates for Canada 
Abstract:
  The purpose of this study is to identify sources of regime switching in
 short-term interest rates for Canada. The choice of information variables
 is based on three well-known hypotheses about interest rates: the
 expectations hypothesis, the Fisher relationship, and the condition for
 uncovered interest parity. The empirical framework consists of an
 autoregressive distributive lag (ADL) model in error-correction form with
 information spreads and a Markov regime-switching estimation methodology.
 The models choose interest-rate regimes that are similar in many respects
 to those found for the USA. The different regimes in Canada are driven by
 movements in the monetary policy rate, the US short-term rate, and the
 long-term yield. The monetary policy rate is found to trigger very large
 changes in the short-term rate, responding one-for-one in the
 high-variance regime and slightly less in the more 'normal' interest-rate
 regime. Both the US short rate and long-term yield are also found to
 trigger relatively large changes in short-term rates, but only in the
 high-variance regime. Inflation, however, is not found to contain
 additional information about regime switches in interest rates at the
 short-term horizon. 
Journal: Applied Economics 
Pages: 439-454 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701630078 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701630078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:439-454




Template-Type: ReDIF-Article 1.0
Author-Name: Tufan Ekici 
Author-X-Name-First: Tufan 
Author-X-Name-Last: Ekici 
Author-Name: Lucia Dunn 
Author-X-Name-First: Lucia 
Author-X-Name-Last: Dunn 
Title: Credit card debt and consumption: evidence from household-level data 
Abstract:
  This research investigates the relationship between credit card debt and
 consumption using household level data. This is a departure from the
 previous studies which have used aggregate measures of consumption and
 general debt such as the Debt Service Ratio or total revolving credit. We
 use a detailed monthly survey of credit card use to impute credit card
 debt to respondents from the Consumer Expenditure Survey sample. In
 contrast to some earlier studies using aggregate data, we find a negative
 relationship between debt and consumption growth. Our work shows that a
 $1000 increase in credit card debt results in a decrease in quarterly
 consumption growth of almost 2%. Investigations are also made into effects
 of debt within different age categories and into the impact of expected
 income growth on the debt-consumption relationship. 
Journal: Applied Economics 
Pages: 455-462 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964526 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964526 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:455-462




Template-Type: ReDIF-Article 1.0
Author-Name: Charalambos Pattichis 
Author-X-Name-First: Charalambos 
Author-X-Name-Last: Pattichis 
Title: The intertemporal budget constraint and current account sustainability in Cyprus: evidence and policy implications 
Abstract:
  Using the recently developed 'bounds' testing approach, this article
 provides evidence that Cyprus is not in violation of its intertemporal
 budget constraint and its current account balance is 'strongly'
 sustainable in the long-run. A policy implication of these findings is
 that the loss of exchange rate policy following the adoption of the euro
 in 2008 may not be a serious cost for Cyprus. On a methodological level,
 the results presented in this article support theoretical models that
 employ an intertemporal approach to modelling the current account. 
Journal: Applied Economics 
Pages: 463-473 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802599875 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599875 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:463-473




Template-Type: ReDIF-Article 1.0
Author-Name: Lourdes Moreno Martin 
Author-X-Name-First: Lourdes Moreno 
Author-X-Name-Last: Martin 
Author-Name: Diego Rodriguez Rodriguez 
Author-X-Name-First: Diego Rodriguez 
Author-X-Name-Last: Rodriguez 
Title: Export activity, persistence and mark-ups 
Abstract:
  This article addresses the differences in margins across exporting and
 nonexporting firms. We jointly estimate a translog cost function, a
 variable factor share equation and price-cost margin equations to analyse
 the effect of persistence in export activity on margins. Results indicate
 that nonexporters have smaller margins than persistent exporters and firms
 that entered foreign markets during the nineties. However, larger export
 ratio is negatively associated with margins for persistent exporters. It
 suggests that efficiency advantages for exporters are partially
 compensated by higher competitive pressure in international markets. These
 results are in accordance with the predictions of Melitz and Ottaviano
 (2005). 
Journal: Applied Economics 
Pages: 475-488 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604529 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604529 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:475-488




Template-Type: ReDIF-Article 1.0
Author-Name: Gawon Yoon 
Author-X-Name-First: Gawon 
Author-X-Name-Last: Yoon 
Title: Nonlinear mean-reversion to purchasing power parity: exponential smooth transition autoregressive models and stochastic unit root processes 
Abstract:
  Nonlinear exponential smooth transition autoregressive (ESTAR) models are
 recently very popular in modelling the deviation from purchasing power
 parity. This article, shows that there is a close relation between the
 ESTAR models estimated in Taylor et al. (2001) and stochastic unit root
 (STUR) processes of Granger and Swanson (1997) and McCabe and Tremayne
 (1995). Also, for a post-Bretton Woods sample period, the real exchange
 rates from four major countries are tested if they are better described as
 I(1), ESTAR or STUR processes. 
Journal: Applied Economics 
Pages: 489-496 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701604552 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:489-496




Template-Type: ReDIF-Article 1.0
Author-Name: Poomthan Rangkakulnuwat 
Author-X-Name-First: Poomthan 
Author-X-Name-Last: Rangkakulnuwat 
Author-Name: Sung Ahn 
Author-X-Name-First: Sung 
Author-X-Name-Last: Ahn 
Author-Name: Holly Wang 
Author-X-Name-First: Holly 
Author-X-Name-Last: Wang 
Author-Name: Susan He 
Author-X-Name-First: Susan 
Author-X-Name-Last: He 
Title: Extended generalized purchasing power parity and optimum currency area in East Asian countries 
Abstract:
  This article extends the theory of generalized purchasing power parity
 (G-PPP) by developing a model including foreign variables such as the real
 money supply, output and interest rate. A cointegration rank test with two
 structural breaks in the deterministic trend was adopted to selected Asian
 countries, with Japan as the base country. There were two cointegrating
 vectors and six common stochastic trends in the model. The cointegrating
 vectors were estimated by the same approach used by Pesaran et al. (2000).
 The first cointegrating vector is interpreted as G-PPP, and the second one
 is interpreted as the extended G-PPP. According to G-PPP, these countries
 could form a single currency area. The first stochastic trend is primarily
 driven by Japan's real money supply; the second, third and fourth by the
 real exchange rates of the Philippines, Singapore and Thailand,
 respectively; the fifth by Japan's output; and the sixth by Japan's
 government bond yields. 
Journal: Applied Economics 
Pages: 497-513 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701663269 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701663269 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:497-513




Template-Type: ReDIF-Article 1.0
Author-Name: Bernardino Benito 
Author-X-Name-First: Bernardino 
Author-X-Name-Last: Benito 
Author-Name: Francisco Bastida 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Bastida 
Author-Name: Jose Garcia 
Author-X-Name-First: Jose 
Author-X-Name-Last: Garcia 
Title: Explaining differences in efficiency: an application to Spanish municipalities 
Abstract:
  This article, investigates efficiency in the municipal sector of the
 Region of Murcia (Spain). With that aim, data of 31 municipalities (69% of
 the response rate) have been collected. Services analysed are: police,
 culture, sports, green areas, refuse collection and water supply. Ratios
 of efficiency have been related to other control variables, such as
 economic level, size of the municipality, decentralization, political sign
 and financial situation. A weak positive relation between economic level
 and efficiency arises. Some weak evidence also exists that public
 management of refuse collection is more efficient than private. In water
 supply, public management by means of a company controlled by the local
 government is clearly more efficient than private. It also seems that the
 higher the tax burden, the greater the efficiency in providing services. 
Journal: Applied Economics 
Pages: 515-528 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701675560 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701675560 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:515-528




Template-Type: ReDIF-Article 1.0
Author-Name: Magali Chaudey 
Author-X-Name-First: Magali 
Author-X-Name-Last: Chaudey 
Author-Name: Muriel Fadairo 
Author-X-Name-First: Muriel 
Author-X-Name-Last: Fadairo 
Title: Contractual design and networks performance: empirical evidence from franchising 
Abstract:
  This article, deals with the links between networks performance and the
 design of vertical contracts. It provides evidence broadly consistent with
 the hypothesis that within franchising systems, constraining contracts for
 the retailers favour a better performance at the network level. 
Journal: Applied Economics 
Pages: 529-533 
Issue: 4 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704428 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704428 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:529-533




Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Rebucci 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Rebucci 
Title: Is growth exogenous? Evidence from the 1970s and 1980s 
Abstract:
  This article assesses the role of external and policy factors for growth
 variability. The mean group estimator is used to estimate a vector
 autoregressive system on a panel data set of eighteen developing economies
 from 1965 to 1992. The main findings are that (i) temporary external
 shocks are an important determinant of medium to long-run growth
 variability (ii) high inflation countries are more vulnerable to external
 shocks than others. This evidence is supportive of the conventional view
 that macro-economic stability is conducive to growth, and casts doubts on
 the idea that the growth process might be largely exogenous. 
Journal: Applied Economics 
Pages: 535-543 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704410 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704410 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:535-543




Template-Type: ReDIF-Article 1.0
Author-Name: A. Yurekli 
Author-X-Name-First: A. 
Author-X-Name-Last: Yurekli 
Author-Name: O. Sayginsoy 
Author-X-Name-First: O. 
Author-X-Name-Last: Sayginsoy 
Title: Worldwide organized cigarette smuggling: an empirical analysis 
Abstract:
  This article estimates the economic size and the impact on government
 revenues of cigarette smuggling worldwide and formulates economic policies
 that can be used to effectively address the problem. First, information
 from various sources are combined and a global map of smuggling routes for
 cigarettes is described. By examining the international cigarette trade
 records, the hub/transit countries in six regions of the world are
 identified. Second, a variable that measures smuggling incentives for
 cigarettes is defined and computed for 110 countries. Third, a static
 global demand model for cigarettes (that includes the smuggling incentives
 variable) is specified and robustly estimated. Using the estimation
 results, global price and income elasticities of cigarette demand are
 obtained as -0.41 and 0.37, respectively. It is estimated that in 1999,
 3.4% of global cigarette consumption was smuggled and 7.4% of tax revenue
 was lost to smuggling. Fourth, the best policy options are identified to
 achieve the objectives of both public health agencies (less consumption,
 less smuggling) and governments (less smuggling, more revenue). A
 tax-induced increase in real retail cigarette prices and an improvement in
 anti-smuggling law enforcement (as proxied by the corruption indicator)
 are found to significantly increase government revenues while decreasing
 global consumption and smuggling. Furthermore, when the tax increase is
 not accompanied by an improvement in law enforcement, then global
 smuggling of cigarettes would increase, but governments would still enjoy
 increased tax revenues. 
Journal: Applied Economics 
Pages: 545-561 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720721 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720721 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:545-561




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Overesch 
Author-X-Name-First: Michael 
Author-X-Name-Last: Overesch 
Author-Name: Georg Wamser 
Author-X-Name-First: Georg 
Author-X-Name-Last: Wamser 
Title: Corporate tax planning and thin-capitalization rules: evidence from a quasi-experiment 
Abstract:
  This article investigates tax-planning behaviour by means of
 inter-company finance and the effectiveness of government countermeasures
 via thin-capitalization rules. A simple theoretical model which considers
 the financing decision of a multinational company is used to obtain
 empirical implications. The empirical analysis, based on German inbound
 investment data from 1996 to 2004, confirms a significant impact of
 tax-rate differentials on the use of inter-company debt. The effectiveness
 of the German thin-capitalization rule is tested by using legal amendments
 as natural experiments. The results suggest that thin-capitalization rules
 induce significantly lower internal borrowing. Hence, tax planning via
 internal finance is effectively limited by thin-capitalization rules. 
Journal: Applied Economics 
Pages: 563-573 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704477 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704477 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:563-573




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Koning 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Koning 
Author-Name: Daniel van Vuuren 
Author-X-Name-First: Daniel 
Author-X-Name-Last: van Vuuren 
Title: Disability insurance and unemployment insurance as substitute pathways 
Abstract:
  In this article, we estimate the degree of substitution between enrolment
 into Disability Insurance (DI) and Unemployment Insurance (UI) in the
 Netherlands. Starting in the 1990s many policy measures aimed at reducing
 DI enrolment, and increase labour force participation. We quantify whether
 these policy measures have led to a reduction in hidden unemployment in
 DI. A side effect of the reforms may be increased pressure on UI.
 Therefore, we simultaneously estimate reverse substitution, that is,
 hidden disability in UI. To this end, we employ a sample of firms in the
 Dutch AVO database from the period 1993 to 2002. Using instrumental
 variables in a bivariate Tobit specification, we identify the hidden
 components in both respective schemes. The estimation results indicate
 that about 3% of all dismissals took place through DI, which implies that
 about one quarter of the DI enrolments observed in our sample in fact
 consists of hidden unemployment. We find no evidence for reverse
 substitution of disabled persons ending up in UI. 
Journal: Applied Economics 
Pages: 575-588 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704436 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704436 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:575-588




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Garcia 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Garcia 
Author-Name: Jose Alberto Molina 
Author-X-Name-First: Jose Alberto 
Author-X-Name-Last: Molina 
Author-Name: Victor Manuel Montuenga 
Author-X-Name-First: Victor Manuel 
Author-X-Name-Last: Montuenga 
Title: Intra-family distribution of paid-work time 
Abstract:
  This article analyses the intra-family distribution of paid-work time in
 five European countries (France, Germany, Italy, Spain and the UK). To
 that end, we formulate a collective model, which allows us to characterize
 the efficient labour supply decisions of each spouse. This two-equation
 model is then simultaneously estimated by using national panel data drawn
 from the European Community Household Panel-ECHP (1994-2001). Empirical
 results clearly show that, in all sample countries, the labour supply of
 wives is affected by own wages, household and own nonlabour incomes and
 the number of children, whereas evidence for husbands differs across
 countries. 
Journal: Applied Economics 
Pages: 589-601 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704469 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704469 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:589-601




Template-Type: ReDIF-Article 1.0
Author-Name: Anh Le 
Author-X-Name-First: Anh 
Author-X-Name-Last: Le 
Author-Name: Paul Miller 
Author-X-Name-First: Paul 
Author-X-Name-Last: Miller 
Title: Glass ceiling and double disadvantage effects: women in the US labour market 
Abstract:
  Gender pay issues in the US labour market are examined using 1990 and
 2000 US Census data for three groups: the native born, immigrants from
 English-speaking countries and immigrants from non-English-speaking
 countries. Quantile regression estimates reveal different patterns of wage
 effects across the wage distribution. Females have lower rates of pay
 across the entire wage scale. There is minimal evidence of glass ceiling
 effects. Immigrant women from non-English-speaking countries are argued to
 experience a double disadvantage effect. 
Journal: Applied Economics 
Pages: 603-613 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704501 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704501 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:603-613




Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Svensson 
Author-X-Name-First: Mikael 
Author-X-Name-Last: Svensson 
Title: Economic upturns are good for your heart but watch out for accidents: a study on Swedish regional data 1976-2005 
Abstract:
  This article explores the relationship between the regional unemployment
 rate in total and cause-specific mortality in Sweden during 1976-2005.
 Overall mortality is unrelated to changes in the unemployment rate, while
 the biggest cause of death (heart disease) decreases when the unemployment
 rate decreases. At the same time, other accidents, including job-related
 accidents, increases when the unemployment rate decreases. Swedish
 evidence provide no support for the US research findings, that 'short-term
 decreases in the unemployment rate are bad for your health', in general. 
Journal: Applied Economics 
Pages: 615-625 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704519 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704519 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:615-625




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chang Wang 
Author-X-Name-First: Ming-Chang 
Author-X-Name-Last: Wang 
Author-Name: Lon-Ping Zu 
Author-X-Name-First: Lon-Ping 
Author-X-Name-Last: Zu 
Author-Name: Chau-Jung Kuo 
Author-X-Name-First: Chau-Jung 
Author-X-Name-Last: Kuo 
Title: Risk aversion, order strategy and price formation 
Abstract:
  This article provides a model of order-submission strategy and price
 formation by analysing the optimal behaviour of risk-averse uninformed
 traders. According to our inference, the market dynamically adjusts the
 bid/ask at any moment to generate enough price improvement return in order
 to cover the adverse selection risk and the nonexecution risk faced by the
 liquidity providers of both side. We find that the asset volatility is the
 key determinant of the adverse selection risk and the nonexecution risk,
 and thereby the bid-ask spread is positively associated with the asset
 volatility. From a practice perspective, our order-submission model based
 on risk-averse preference may have much less potential problems than the
 risk-neutral analyses of Foucault (1999) and Handa et al. (2003). Besides,
 our novelty approach could connect both previous models, which are the
 special cases of the reduced form of our model. 
Journal: Applied Economics 
Pages: 627-640 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720788 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:627-640




Template-Type: ReDIF-Article 1.0
Author-Name: Omer Gokcekus 
Author-X-Name-First: Omer 
Author-X-Name-Last: Gokcekus 
Author-Name: Adam Godet 
Author-X-Name-First: Adam 
Author-X-Name-Last: Godet 
Author-Name: Heather Ramsey 
Author-X-Name-First: Heather 
Author-X-Name-Last: Ramsey 
Title: Are women more predictable than men? 
Abstract:
  During the NCAA basketball tournaments from 2002 to 2005, men's games
 produced 27% more upsets than women's games. To test whether these
 unpredictable results were due to gender differences, we conduct logit
 analysis to explain upsets by gender and other potentially significant
 variables, including differences in competing teams': (i) RPI scores, (ii)
 percentage of freshmen, (iii) percentage of seniors, (iv) top scorer's
 total points and, (v) top three scorers' total points. These analyses
 suggest that gender plays a significant role in explaining predictability. 
Journal: Applied Economics 
Pages: 641-645 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704451 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704451 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:641-645




Template-Type: ReDIF-Article 1.0
Author-Name: Evrim Turgutlu 
Author-X-Name-First: Evrim 
Author-X-Name-Last: Turgutlu 
Author-Name: Burcu Ucer 
Author-X-Name-First: Burcu 
Author-X-Name-Last: Ucer 
Title: Is global diversification rational? Evidence from emerging equity markets through mixed copula approach 
Abstract:
  In this article, we aim to model the level and structure of the
 dependence between the world's leading stock markets and those of the
 emerging market groups - Europe, Latin America and Far East. To this end
 we use a mixture model of Gaussian, Gumbel and Gumbel survival copulas.
 Our results indicate that none of the pairs of stock markets exhibit a
 right-tail dependence structure. All valid models exhibit a mixture of
 Gaussian and left-tail dependence structure. Our findings imply that
 Gaussian dependence structure is dominant in most of the models. The
 emerging equity markets in the European region exhibit the most
 significant dependence structure with the world leaders. Furthermore, most
 of the emerging equity markets have a significant dependence structure
 with the US stock market. We further compare our findings with the results
 of the conventional correlation coefficients and conclude the importance
 of using copula models in analysing the portfolio diversification
 opportunities. Our findings overall indicate two important remarks: First,
 the copula models reveal better indicators for global investors to
 establish a diversified portfolio; Second, international equity markets
 exhibit significant dependence, which leaves a smaller opportunity to
 benefit from international portfolio diversification. 
Journal: Applied Economics 
Pages: 647-658 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704485 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704485 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:647-658




Template-Type: ReDIF-Article 1.0
Author-Name: Kuan-Min Wang 
Author-X-Name-First: Kuan-Min 
Author-X-Name-Last: Wang 
Author-Name: Thanh-Binh Nguyen Thi 
Author-X-Name-First: Thanh-Binh Nguyen 
Author-X-Name-Last: Thi 
Title: Asymmetric pass-through and risk of interest rate: an empirical exploration of Taiwan and Hong Kong 
Abstract:
  This study employs the asymmetric threshold cointegration test suggested
 by Enders and Siklos (2001) and creates asymmetric EC-EGARCH(1, 1)- M
 model to investigate the pass-through of money-market rate to banking
 retail rates in Taiwan and Hong Kong. It further explores the impact of
 interest volatility on interest rates. Over the period of February 1988 to
 December 2004, we find that the interest pass-through mechanism of these
 two markets is noncomplete. In addition, based on the asymmetric threshold
 cointegration test, we discover the existence of asymmetric cointegration
 relationship between retail rates and market rate in both markets. In
 particular, while employing asymmetric EC-EGARCH (1, 1)-M model to test
 for the influence of money-market rate adjustment and volatility on retail
 rates in short-run, we find robust evidence that there exist the upward
 rigidity in deposit rate and the downward rigidity in lending rate in both
 Taiwan and Hong Kong. This finding supports the hypothesis of the
 collusive pricing arrangements. Furthermore, interest volatility should
 cause a smaller margin of variation for Taiwan's deposit/lending rates and
 wider margin for Hong Kong's lending rate. 
Journal: Applied Economics 
Pages: 659-670 
Issue: 5 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701704444 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:659-670




Template-Type: ReDIF-Article 1.0
Author-Name: Torjus Bolkesj&#xf8; 
Author-X-Name-First: Torjus 
Author-X-Name-Last: Bolkesj&#xf8; 
Author-Name: Joseph Buongiorno 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Buongiorno 
Author-Name: Birger Solberg 
Author-X-Name-First: Birger 
Author-X-Name-Last: Solberg 
Title: Joint production and substitution in timber supply: a panel data analysis 
Abstract:
  Supply equations for sawlog and pulpwood were developed with a panel of
 data from 102 Norwegian municipalities, observed from 1980 to 2000. Static
 and dynamic models were estimated by cross-section, time-series andpanel
 data methods. A static model estimated by first differencing gavethe best
 overall results in terms of theoretical expectations, pattern ofresiduals,
 prediction accuracy and parsimony. The results showed thatsawlog supply
 responded positively to its own price (elasticity e = 0.91 &#xb1; 0.07)
 but negatively to the pulpwood price (e = -0.22 &#xb1; 0.06). The pulpwood
 supply responded positively to the price of both pulpwood (e = 0.53 &#xb1;
 0.06) and sawlogs (e = 0.20 &#xb1; 0.07). Sawlog and pulpwood supply had a
 common elasticity of 2.04 (&#xb1; 0.25) with respect to the growing stock,
 and of 0.30 (&#xb1; 0.21) with respect to the interest rate. The supply
 elasticity of substitution of sawlog for pulpwood with respect to their
 relative price was 0.74 &#xb1; 0.04. Policies to raise the annual harvest,
 which is currently well below the annual growth, should focus on
 stimulating sawnwood production (thus increasing sawlog prices), because
 this would increase supply of both pulpwood and sawlogs. Instead, policies
 to stimulate pulpwood demand (thus increasing pulpwood prices), would give
 more pulpwood, but less sawlogs. 
Journal: Applied Economics 
Pages: 671-680 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721216 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721216 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:671-680




Template-Type: ReDIF-Article 1.0
Author-Name: Makram El-Shagi 
Author-X-Name-First: Makram 
Author-X-Name-Last: El-Shagi 
Title: Capital controls and international interest rate differentials 
Abstract:
  Since the Asian crises it is often taken as granted that capital markets
 have significant functional deficits. Often these deficits are believed to
 be so very strong that the ability of free capital markets to guarantee a
 more or less correct international allocation of capital is denied. It is
 argued that speculation dominates capital markets so much that capital
 allocation is purely random. This is one of the major arguments backing
 the present trend to re-establish capital controls, which emerged after
 the capital market distortions observed during the Asian flu. In the
 present article it is shown that capital markets, while certainly prone to
 many distortions, are well capable of roughly guiding capital to the
 proper place. Though allocation is not model-like perfect, this steals the
 thunder from the idea, that closed or government-guided capital markets
 were able to perform better. 
Journal: Applied Economics 
Pages: 681-688 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720770 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720770 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:681-688




Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Pons-Novell 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Pons-Novell 
Author-Name: Daniel Tirado-Fabregat 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Tirado-Fabregat 
Title: Is there life beyond the ISI Journal lists? The international impact of Spanish, Italian, French and German economics journals 
Abstract:
  This comparative study looks at the international impact of leading
 economics journals published in Spain, Italy, France and Germany. It also
 aims to establish whether they play similar roles in these four countries.
 For this purpose, data were collected on the number of times that articles
 published in these journals are cited in international journals on the ISI
 Journals lists. The study focused on the number and characteristics of the
 citations received during the period 1996 to 2004 by articles published
 between 1995 and 1999 in a limited number of Spanish, Italian, French and
 German journals. The international impact of the Spanish journals was
 found to be similar in size and characteristics to that of Italian
 publications. However, it differed sharply from the impact of the
 highest-ranking French and German journals, which received considerably
 more citations. Moreover, restricting the group of citing journals to the
 'blue ribbon journals', the highest-ranking publications in the economics
 sector, only the leading journals in Germany and France received a
 significant number of references. 
Journal: Applied Economics 
Pages: 689-699 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720804 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:689-699




Template-Type: ReDIF-Article 1.0
Author-Name: Dorothea Schafer 
Author-X-Name-First: Dorothea 
Author-X-Name-Last: Schafer 
Author-Name: Boriss Siliverstovs 
Author-X-Name-First: Boriss 
Author-X-Name-Last: Siliverstovs 
Author-Name: Eva Terberger 
Author-X-Name-First: Eva 
Author-X-Name-Last: Terberger 
Title: Banking competition, good or bad? The case of promoting micro and small enterprise finance in Kazakhstan 
Abstract:
  Competition is claimed to be beneficial in development projects promoting
 micro and small enterprise finance although there are still doubts as to
 whether these loans can be developed into a profitable business. Our
 research sheds new light on the question of how many MSE banking units
 should optimally be created and supported in a certain region. We employ a
 unique data set from the European Bank for Reconstruction and Development
 for Kazakhstan, and investigate which strategy contributes more to the
 overall success of the programme: a strategy of setting up several
 competing banks or a strategy of establishing regional monopolies.
 'Competition is the most important principle on which our strategy is
 based. As in any other market, effective competition provides incentives
 for banks to offer market-based and demand-oriented financial services.
 Competition encourages the development of better products and services at
 lower cost.' (Matthaus-Maier and von Pischke, 2004, p. 1). 
Journal: Applied Economics 
Pages: 701-716 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720820 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720820 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:701-716




Template-Type: ReDIF-Article 1.0
Author-Name: R. Vergara 
Author-X-Name-First: R. 
Author-X-Name-Last: Vergara 
Title: Taxation and private investment: evidence for Chile 
Abstract:
  Along with several structural reforms, Chile embarked upon a major income
 tax reform in the eighties. Its basic feature was a significant reduction
 in the corporate income tax rate. The purpose of this article is to
 investigate empirically the link between the tax reform and the investment
 performance of Chile since the reform. Macroeconomic and microeconomic
 evidence is found to be consistent with the hypothesis of the reduction in
 the corporate income tax as being one of the determinants of the
 investment boom of the late eighties and nineties in Chile. Our
 estimations suggest that there are two channels in which taxes affect
 investment: on the one hand, higher taxes increase the cost of capital
 (cost of capital channel); and on the other, they reduce internal funds
 available for investment (liquidity constraint channel). 
Journal: Applied Economics 
Pages: 717-725 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720747 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720747 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:717-725




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Kesting 
Author-X-Name-First: Peter 
Author-X-Name-Last: Kesting 
Title: Why it is possible that wages and pensions can increase simultaneously in an ageing and stagnating % A theoretical investigation and a simulation of the German case 
Abstract:
  This article investigates the possibilities and restrictions of
 inter-generational income development for ageing and stagnating economies.
 In a first step, the basic logic of ageing will be investigated in a
 simple dynamic model. In particular, the investigation points out the
 existence of the demographic distribution mass and its meaning for
 inter-generational income development. It proves that the demographic
 distribution mass makes it possible for wages and pensions to grow
 simultaneously in an ageing and stagnating economy. In a second step, the
 development of wages and pensions is simulated for the German case through
 to the year 2050. It is demonstrated that (under normal circumstances) it
 can be expected that the burden from ageing can almost always be
 over-compensated by the economic growth of the respective year. Against
 this background, ageing appears to be rather a problem of acceptance and
 income distribution than that of real income reductions. 
Journal: Applied Economics 
Pages: 727-738 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720796 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:727-738




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Vaillant 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Vaillant 
Author-Name: Philippe Lesot 
Author-X-Name-First: Philippe 
Author-X-Name-Last: Lesot 
Author-Name: Quentin Bonnard 
Author-X-Name-First: Quentin 
Author-X-Name-Last: Bonnard 
Author-Name: Valerie Harrant 
Author-X-Name-First: Valerie 
Author-X-Name-Last: Harrant 
Title: The use of expert opinion, quality and reputation indicators by consumers: evidence from the French vaulting stallion semen market 
Abstract:
  We build a model inspired by the standard hedonic approach developed by
 Rosen (1974) and completed by Landon and Smith (1997, 1998) to analyse the
 price of French vaulting stallion semen in 2004. We show that reputation,
 modelled as an endogenous factor, plays a less important role than
 information on true quality for the explanation of price dispersion. This
 result is explained by the fact that information on studhorses is not only
 available but also reliable, insofar as the quality of a stallion is
 stable over time, contrary to nondurable products like wine or cigars.
 This explains also why consumers on this market do not use expert opinions
 to make their choices. 
Journal: Applied Economics 
Pages: 739-745 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720812 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720812 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:739-745




Template-Type: ReDIF-Article 1.0
Author-Name: Koyin Chang 
Author-X-Name-First: Koyin 
Author-X-Name-Last: Chang 
Author-Name: Dennis Wilson 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Wilson 
Author-Name: Yung-Hsiang Ying 
Author-X-Name-First: Yung-Hsiang 
Author-X-Name-Last: Ying 
Author-Name: Yoonbai Kim 
Author-X-Name-First: Yoonbai 
Author-X-Name-Last: Kim 
Title: The decomposition of disturbances to national output of China-the evidence of sectoral and regional shocks 
Abstract:
  The Chinese government has established policies to promote its industrial
 sectors and to develop coastal provinces since the late 1978. To
 investigate the extent and reason the output growth in China has been
 influenced by these policies, an error-component model is employed to
 decompose the importance of sectoral and regional shocks to variations in
 national output. The results show that both sectoral specific shocks
 common across regions and regional specific shocks common across sectors
 are important in explaining the disturbance of national output in China.
 Specifically, sectoral specific shocks consistently explain relatively
 more disturbance of Chinese output than regional specific shocks do. Our
 empirical results are somewhat different from Stockman (1988) and Costello
 (1993), since they show almost equal explanatory power of sectoral and
 national shocks in accounting for national outputs in OECD countries. 
Journal: Applied Economics 
Pages: 747-757 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720887 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720887 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:747-757




Template-Type: ReDIF-Article 1.0
Author-Name: Badri Narayanan 
Author-X-Name-First: Badri 
Author-X-Name-Last: Narayanan 
Title: Long-run relationship between output, capital, labour and productivity in emerging market economies 
Abstract:
  Long-run relationship between the variables involved in the production
 function is an issue that is important particularly in developing
 countries, as the neoclassical production function is best suited for
 developed countries and its applicability to developing countries is
 questionable in various ways. This motivates us to do this based on
 time-series analysis, taking Indian textile industry as an example, which
 is currently at its crucial stage as a critical industry in an emerging
 economy, with the phasing out of Multi Fibre Arrangement in 2005. This
 study documents existence of cointegration between capital and output,
 negative impact of employment shocks on output changes, substitutability
 between changes in capital and labour, negative effect of shocks to
 changes in capital stock on productivity and negative effect of employment
 shocks on future productivity. These results are in line with the general
 perceptions about this industry and with the standard neoclassical
 propositions, as explained in this article. 
Journal: Applied Economics 
Pages: 759-768 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720838 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:759-768




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Yazici 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Yazici 
Author-Name: Mushtaq Ahmad Klasra 
Author-X-Name-First: Mushtaq 
Author-X-Name-Last: Ahmad Klasra 
Title: Import-content of exports and J-curve effect 
Abstract:
  This article investigates how the response to devaluation of trade
 balance is affected, compared to J-curve hypothesis, by the presence of
 imported inputs in the production of exports. Using first the Almon lag
 technique and then the cointegration and the generalized impulse response
 function analysis, the J-curve effect is examined in two sectors of
 Turkish economy (manufacturing and mining), which use imported inputs at
 different rates. Based on the data covering the period from the first
 quarter of 1986 to the third quarter of 1998, our results indicate that in
 neither sector J-curve exists and that the violation of the J-curve effect
 is more severe in the sector with higher import content 
Journal: Applied Economics 
Pages: 769-776 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720846 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720846 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:769-776




Template-Type: ReDIF-Article 1.0
Author-Name: Simon So 
Author-X-Name-First: Simon 
Author-X-Name-Last: So 
Author-Name: Gordon Tang 
Author-X-Name-First: Gordon 
Author-X-Name-Last: Tang 
Title: An examination of conditional effect on cross-sectional returns: Singapore evidence 
Abstract:
  This article empirically examines the usefulness of beta, firm size,
 book-to-market equity ratio (B/M) and earnings-to-price ratio (E/P), as
 risk proxies in explaining the cross-sectional returns in the Singapore
 stock market under both unconditional and conditional frameworks based on
 up and down markets. Consistent with previous studies, though beta plays
 no role under unconditional framework, there is evidence of a
 significantly positive (negative) risk premium on beta during periods of
 up (down) markets, supporting for the continuous use of beta as a risk
 measure. Interestingly, our results show that firm size is the only
 significant variable in explaining average returns under the unconditional
 framework but its impact becomes much less under the up and down market
 conditions. However, significant conditional effect of E/P is found.
 Although, B/M alone is not significantly conditionally related to returns,
 in various combinations with beta, it becomes significant and the joint
 role of beta and B/M, due to an interaction effect between them, has an
 'amplified' gain in the explanatory power. Our study suggests that beta
 does not suffice to explain the cross-sectional variations of returns, but
 it is possible that the joint effect of beta and B/M may be a surrogate as
 an underlying and more fundamental factor that is missing in the
 conditional SLB model. We also find evidence that investors in the
 Singapore stock market react virtually the same to these firm-specific
 factors and to beta during up and down markets. Our results are robust for
 both beta-size and size-beta sorting procedures and for both value- and
 equally weighted market proxies. 
Journal: Applied Economics 
Pages: 777-795 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720879 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720879 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:777-795




Template-Type: ReDIF-Article 1.0
Author-Name: Chuan Lee 
Author-X-Name-First: Chuan 
Author-X-Name-Last: Lee 
Author-Name: Chin-Tsai Lin 
Author-X-Name-First: Chin-Tsai 
Author-X-Name-Last: Lin 
Author-Name: Chien-Hua Lai 
Author-X-Name-First: Chien-Hua 
Author-X-Name-Last: Lai 
Title: Jackpot promotion model for Taiwan Lotto 
Abstract:
  Lotto was inaugurated in January 2002, and immediately became a popular
 activity in Taiwan; as the big craze following its initial introduction
 has subsided, the growth of Lotto game sales has slowed. To maintain
 lottery sales' momentum, operators have conducted numerous jackpot
 promotions; this study examines the effectiveness of various jackpot
 promotional strategies. The analytical results can provide a valuable
 reference for operators and governmental authorities regarding ways of
 increasing lottery earnings. The empirical findings of this investigation
 include the following: (1) the effective price elasticity of Lotto is
 -0.382; Taipei Fubon Bank can increase the revenue gained from Lotto by
 increasing the effective price; (2) operators can significantly increase
 lottery sales by declaring the jackpot as an unconditional added fixed or
 variable bonus. 
Journal: Applied Economics 
Pages: 797-801 
Issue: 6 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720903 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:797-801




Template-Type: ReDIF-Article 1.0
Author-Name: Jon Nelson 
Author-X-Name-First: Jon 
Author-X-Name-Last: Nelson 
Title: Alcohol advertising bans, consumption and control policies in seventeen OECD countries, 1975-2000 
Abstract:
  This article uses cross-country panel data to study the effects of
 advertising bans and other control policies on alcohol demand. The null
 hypothesis is that advertising bans do not decrease alcohol consumption.
 The study addresses several shortcomings in four previous cross-country
 studies. First, an explanatory variable is included for other alcohol
 control policies. Second, the study examines the history of advertising
 bans in OECD countries. Third, the study also examines differences in
 cross-country trends that characterize developed countries, including
 aging of the population, increased tourism, higher unemployment rates and
 increased consumption of wine. The Mediterranean wine-drinking countries
 are shown to be categorically distinct from the beer-drinking countries
 and Nordic spirits-drinking countries. Fourth, the study examines the
 panel data for unit roots and employs model specifications that correct
 for nonstationary data. The empirical results indicate a significantly
 negative effect for the control index and the alcohol price. Using
 alternative model specifications and estimation methods, the results
 indicate that advertising bans do not reduce alcohol consumption. 
Journal: Applied Economics 
Pages: 803-823 
Issue: 7 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720952 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720952 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:803-823




Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Hakim 
Author-X-Name-First: Abdul 
Author-X-Name-Last: Hakim 
Author-Name: Michael McAleer 
Author-X-Name-First: Michael 
Author-X-Name-Last: McAleer 
Title: Modelling the interactions across international stock, bond and foreign exchange markets 
Abstract:
  The benefits of investing internationally depend on three conditions,
 namely, cross-country correlations, market volatilities and future changes
 in currency risks (Odier and Solnik, 1993). This article investigates
 these conditions for several countries. Many papers have modelled both
 domestic interactions across asset markets and international interactions
 in individual asset markets in isolation, but rarely have they examined
 international interactions across asset markets. The article fills this
 gap by modelling the international interactions across stock, bond and
 foreign exchange markets. Two models that meet these purposes are the
 VARMA-AGARCH model of Hoti et al. (2002) and the VARMA-GARCH model of Ling
 and McAleer (2003). The countries that will be modelled in this article
 are Australia, Japan, Singapore, New Zealand and USA. 
Journal: Applied Economics 
Pages: 825-850 
Issue: 7 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720994 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720994 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:825-850




Template-Type: ReDIF-Article 1.0
Author-Name: P&#xe5;l Boug 
Author-X-Name-First: P&#xe5;l 
Author-X-Name-Last: Boug 
Author-Name: Andreas Fagereng 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Fagereng 
Title: Exchange rate volatility and export performance: a cointegrated VAR approach 
Abstract:
  During the last decades Norwegian exporters have-despite various forms of
 exchange rate targeting-faced a rather volatile exchange rate which may
 have influenced their behaviour. Recently, the shift to inflation
 targeting and a freely floating exchange rate has brought about an even
 more volatile exchange rate. We examine the causal link between export
 performance and exchange rate volatility across different monetary policy
 regimes within the cointegrated Vector Autoregression (VAR) framework
 using the implied conditional variance from a Generalized Autoregressive
 Conditional Heteroskedasticity (GARCH) model as a measure of volatility.
 Although treating the volatility measure as either a stationary or a
 nonstationary variable in the VAR, we are not able to find any evidence
 suggesting that export performance has been significantly affected by
 exchange rate uncertainty. We find, however, that volatility changes
 proxied by blip dummies related to the monetary policy change from a fixed
 to a managed floating exchange rate and the Asian financial crises during
 the 1990s enter significantly in a dynamic model for export growth-in
 which the level of relative prices and world market demand together with
 the level of exports constitute a significant cointegration relationship.
 A forecasting exercise on the dynamic model rejects the hypothesis that
 increased exchange rate volatility in the wake of inflation targeting in
 the monetary policy has had a significant impact on export performance. 
Journal: Applied Economics 
Pages: 851-864 
Issue: 7 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802600491 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600491 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:851-864




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Rangel Figueira 
Author-X-Name-First: Sergio Rangel 
Author-X-Name-Last: Figueira 
Author-Name: Heloisa Lee Burnquist 
Author-X-Name-First: Heloisa Lee 
Author-X-Name-Last: Burnquist 
Author-Name: Mirian Rumenos Piedade Bacchi 
Author-X-Name-First: Mirian Rumenos Piedade 
Author-X-Name-Last: Bacchi 
Title: Forecasting fuel ethanol consumption in Brazil by time series models: 2006-2012 
Abstract:
  This article analysed scenarios for Brazilian consumption of ethanol for
 the period 2006 to 2012. The results show that if the country's GDP
 sustains a 4.6% a year growth, domestic consumption of fuel ethanol could
 increase to 25.16 billion liters in this period, which is a volume
 relatively close to the forecasted gasoline consumption of 31 billion
 liters. At a lower GDP growth of 1.22% a year, gasoline consumption would
 be reduced and domestic ethanol consumption in Brazil would be no higher
 than 18.32 billion liters. Contrary to the current situation, forecasts
 indicated that hydrated ethanol consumption could become much higher than
 anhydrous consumption in Brazil. The former is being consumed in cars
 moved exclusively by ethanol and flex-fuel cars, successfully introduced
 in the country at 2003. Flex cars allow Brazilian consumers to choose
 between gasoline and hydrated ethanol and immediately switch to whichever
 fuel presents the most favourable relative price. 
Journal: Applied Economics 
Pages: 865-874 
Issue: 7 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720978 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720978 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:865-874




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen MacDonald 
Author-X-Name-First: Stephen 
Author-X-Name-Last: MacDonald 
Author-Name: Suwen Pan 
Author-X-Name-First: Suwen 
Author-X-Name-Last: Pan 
Author-Name: Agapi Somwaru 
Author-X-Name-First: Agapi 
Author-X-Name-Last: Somwaru 
Author-Name: Francis Tuan 
Author-X-Name-First: Francis 
Author-X-Name-Last: Tuan 
Title: China's role in world cotton and textile markets: a joint computable general equilibrium/partial equilibrium approach 
Abstract:
  Under the Uruguay Round's Agreement on Textiles and Clothing (ATC), the
 quotas inherited from the Multifibre Arrangement were gradually phased-out
 between January 1995 and 31 December 2004. This study estimates the impact
 of the ATC's implementation on China's textile industry and China's cotton
 sector. The study finds that, assuming equilibrium levels of income and
 exchange rates, the adoption of ATC are expected to increase China's net
 apparel exports, textile production, cotton consumption, cotton production
 and cotton imports. However, this study fails to support the hypothesis
 that the adoption of the ATC results in China supplanting the textile
 industries of the rest of the developing world. The impacts on cotton are
 also smaller than indicated by previous studies. These outcomes are
 somewhat sensitive to estimates of expected efficiency gains around the
 world. 
Journal: Applied Economics 
Pages: 875-885 
Issue: 7 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720911 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720911 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:875-885




Template-Type: ReDIF-Article 1.0
Author-Name: Hsiu-Yun Lee 
Author-X-Name-First: Hsiu-Yun 
Author-X-Name-Last: Lee 
Author-Name: Jyh-Lin Wu 
Author-X-Name-First: Jyh-Lin 
Author-X-Name-Last: Wu 
Author-Name: Chiung-Hsiang Lin 
Author-X-Name-First: Chiung-Hsiang 
Author-X-Name-Last: Lin 
Title: Hysteresis in East Asian unemployment 
Abstract:
  High-performing Asian economies are quite distinctive with efficient,
 flexible and responsive labour markets. Comparing the persistence of
 unemployment in East Asian economies to that in Western countries is
 difficult due to the data's short time spans and possible structural
 breaks. This article employs advanced unit root tests to deal with these
 problems and fails to reject 'hysteresis' in the unemployment rates of the
 high-performing Asian countries, even after taking into account structural
 change. An alternative explanation of different productivity growth for
 the hysteresis phenomenon of the Asian countries is proposed herein. 
Journal: Applied Economics 
Pages: 887-898 
Issue: 7 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720895 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:887-898




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Zaher 
Author-X-Name-First: Mohammad 
Author-X-Name-Last: Zaher 
Author-Name: Allen Featherstone 
Author-X-Name-First: Allen 
Author-X-Name-Last: Featherstone 
Title: Productive efficiency in the Middle East and North Africa 
Abstract:
  Productive efficiency and factors affecting it in 11 countries in the
 Middle East and North Africa region were evaluated over the period 1980 to
 1999 using Fare's nonparametric approach. The results indicate that
 Oil-producing countries are more efficient in terms of production compared
 with non Oil-producing countries. Tobit analyses indicate that previous
 levels of efficiency, the degree of economic openness, consumption of
 domestically produced goods and the limited availability of credit have a
 positive impact on production efficiency. A sensitivity analysis using the
 bias corrected bootstrap technique shows that allocative efficiency and
 economic efficiency are more sensitive to the returns to scale assumption
 and sample size than pure technical efficiency. 
Journal: Applied Economics 
Pages: 899-915 
Issue: 7 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720986 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720986 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:899-915




Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Hung Sun 
Author-X-Name-First: Chia-Hung 
Author-X-Name-Last: Sun 
Author-Name: Yi-Bin Chiu 
Author-X-Name-First: Yi-Bin 
Author-X-Name-Last: Chiu 
Title: Taiwan's trade imbalance and exchange rate revisited 
Abstract:
  This article applies the recently developed econometric method of
 autoregressive distributed lag (ARDL) model to re-examine the relationship
 between the exchange rate and bilateral trade imbalance for Taiwan and its
 several trading partners: China, Hong Kong, the US, Japan, South Korea and
 Malaysia. The implication of this issue is critical to policy makers,
 particularly after China and Taiwan joined the World Trade Organization
 (WTO) in late 2001 and early 2002, respectively. The empirical evidence
 shows a stable long-run relationship of bilateral trade balance and real
 exchange rate between Taiwan and its trading partners except Japan. Other
 findings indicate that except for the US, there is no specific pattern
 supporting the J-curve phenomenon for these trading partners. 
Journal: Applied Economics 
Pages: 917-922 
Issue: 7 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720937 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720937 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:917-922




Template-Type: ReDIF-Article 1.0
Author-Name: Qin Xiao 
Author-X-Name-First: Qin 
Author-X-Name-Last: Xiao 
Author-Name: Yunhua Liu 
Author-X-Name-First: Yunhua 
Author-X-Name-Last: Liu 
Title: The residential market of Hong Kong: rational or irrational? 
Abstract:
  The current study attempts to investigate the proposition that Hong Kong
 residential market is only driven by a rational speculative bubble, in
 addition to fundamentals. The fundamentals are chosen according to the
 present value model, but will account for latent private information.
 Potential roles of other public information are also explored. The study
 finds that the influence of the rational bubble on the price growth is
 highly significant. However, in contrast to Seoul and Singapore housing
 market (Xiao, 2006; Xiao and Huang, 2007), neither the fundamentals, nor
 the rational bubble can explain much of the price growth in the market of
 concern. This finding leaves large room for questioning whether or not
 this market is more prone to irrationality than its counterparts in Seoul
 and Singapore. 
Journal: Applied Economics 
Pages: 923-933 
Issue: 7 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701720960 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720960 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:923-933




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Wieck 
Author-X-Name-First: Christine 
Author-X-Name-Last: Wieck 
Author-Name: David Holland 
Author-X-Name-First: David 
Author-X-Name-Last: Holland 
Title: The economic effect of the Canadian BSE outbreak on the US economy 
Abstract:
  Before the discovery of the first Bovine Spongiform Encephalopathy (BSE)
 cow in May 2003, Canada was the most important exporter of live cattle
 into the US with a share of 74% of US total live cattle imports. With the
 outbreak of BSE in Canada, the US ceased imports of Canadian cattle and
 beef products. This study analyses the short to medium-term effect of the
 import trade ban for the US economy using a 20 sector, economy wide
 Computable General Equilibrium (CGE) model. Uncertainty about exogenous
 elasticity values was addressed using Monte Carlo techniques.
 Beneficiaries of the trade ban are the cattle industry and related
 sectors, such as feed production and agricultural service providers. The
 US economy as a whole, however, is negatively affected with a loss of
 &#x223c;$-1.7 billion in gross domestic product and -11000 jobs. The model
 shows how the restriction on Canadian cattle imports generates income
 losses for both rich and poor households in the US. 
Journal: Applied Economics 
Pages: 935-946 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721125 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721125 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:935-946




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Nikolopoulos 
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Nikolopoulos 
Title: Forecasting with quantitative methods: the impact of special events in time series 
Abstract:
  Quantitative methods are very successful in producing baseline forecasts
 of time series; however, these models forecast neither the timing nor the
 impact of special events such as promotions or strikes. In most of the
 cases, the timing of such events is not known so they are usually referred
 as shocks (economics) or special events (forecasting). Sometimes the
 timing of such events is known a priori (i.e. a future promotion); but
 even then the impact of the forthcoming event is hard to estimate.
 Forecasters prefer to use their own judgement for adjusting for
 forthcoming special events, but human efficiency in such tasks has been
 found to be deficient. This study after examining the relative performance
 of Artificial Neural Networks (ANNs), Multiple Linear Regression (MLR) and
 Nearest Neighbour (NN) approaches proposes an expert method, which
 combines the strengths of regression and artificial intelligence. 
Journal: Applied Economics 
Pages: 947-955 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:947-955




Template-Type: ReDIF-Article 1.0
Author-Name: Masoud Moghaddam 
Author-X-Name-First: Masoud 
Author-X-Name-Last: Moghaddam 
Title: Co-integrated money in the production function-evidence and implications 
Abstract:
  The notion of money as a factor of production has been debated both
 theoretically and empirically by a number of researchers in the past four
 decades. However, the empirical support for money as an input along with
 labour and capital has been mixed and thus, the issue appears to be
 unsettled. Recent developments in econometrics regarding co-integration
 and error correction provide a rich environment in which the role of money
 in the production function can be reexamined. In a co-integrated space,
 this article presents empirical evidence indicating that different
 definitions of money (simple sum or the divisia M2) play an input role in
 the Cobb-Douglas production function. 
Journal: Applied Economics 
Pages: 957-963 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721075 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:957-963




Template-Type: ReDIF-Article 1.0
Author-Name: Juthathip Jongwanich 
Author-X-Name-First: Juthathip 
Author-X-Name-Last: Jongwanich 
Title: The determinants of household and private savings in Thailand 
Abstract:
  A broad set of possible determinants of household and private savings
 behaviour is examined through an in-depth case study of Thailand during
 the period 1960 to 2004. Results suggest that an increase in economic
 growth, inflation and terms of trade all have a significant positive
 impact on household and private saving rates. In contrast, the
 availability of bank credit tends to reduce household and private saving
 rates. While an increase in both old and young dependency has a negative
 impact on household and private saving rates, the magnitude of the impact
 on the former is far greater than that on the latter. Furthermore, public
 saving seems to crowd out household and private saving, but less than
 proportionately. This reflects a possible role of fiscal policy in
 increasing national savings in the economy. Over and above these
 variables, corporate saving is another important determinant of household
 saving. An increase in the former brings about a significant reduction in
 the latter. 
Journal: Applied Economics 
Pages: 965-976 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721067 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721067 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:965-976




Template-Type: ReDIF-Article 1.0
Author-Name: Jian-Zhou Teng 
Author-X-Name-First: Jian-Zhou 
Author-X-Name-Last: Teng 
Author-Name: Qi Liang 
Author-X-Name-First: Qi 
Author-X-Name-Last: Liang 
Title: Reassessment of the finance-growth nexus in the presence of structural breaks 
Abstract:
  This article investigates empirically the causality between financial
 development and economic growth for 11 sample countries in a structural
 break framework via minimum Lagrange multiplier unit-root test and Hsiao's
 causality test. We find most of the series can be more accurately
 characterized as a segmented trend stationary process around structural
 breaks as opposed to a stochastic unit-root process, which has important
 implications for policy-makers to formulate long-term development strategy
 and short-run stabilization policies as well as for academics to carry out
 cointegration analysis. Besides, we find different causality patterns in
 sample countries, which depart from those found in the existing
 literature, highlighting that it might be unreliable to apply only
 conventional unit-root test and inappropriate to take the first difference
 of the series to achieve stationarity, all of which might result in model
 misspecification. Our analysis also provides some evidence on the source
 of the mixed results on finance-growth nexus as they may differ due to the
 length of data span and the different econometric procedure. 'One of the
 most important problems in the field of finance &#x2026; is the effect
 that financial structure and development have on economic growth'.
 Goldsmith (1969, p. 390) 
Journal: Applied Economics 
Pages: 977-988 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721059 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721059 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:977-988




Template-Type: ReDIF-Article 1.0
Author-Name: Emanuela Marrocu 
Author-X-Name-First: Emanuela 
Author-X-Name-Last: Marrocu 
Author-Name: Raffaele Paci 
Author-X-Name-First: Raffaele 
Author-X-Name-Last: Paci 
Title: The effects of public capital on the productivity of the Italian regions 
Abstract:
  This article investigates the role played by public capital in increasing
 the productivity levels in Italy. For construction of the regional series
 for the public capital stock over the period 1996 to 2003, the study
 benefits from the use of the rich dataset on public expenditure, recently
 published by the Italian Ministry of Economy. We have estimated panel
 production functions with the inclusion of traditional factors and also
 intangible inputs like research and development (R&D) expenditure, human
 capital (HK) and social capital (SK). The results point out that public
 capital has a positive and significant effect on production. Moreover, the
 effects of all production factors vary considerably between the two
 macro-areas of the country, namely Centre-North and Mezzogiorno. More
 specifically, while private capital is more effective in the South, labour
 exhibits an elasticity much higher in the Centre-North with respect to the
 Mezzogiorno. The disaggregation of the public capital stock into
 functional categories indicates a significant different impact in the two
 macro-areas. In addition, when the analysis is carried out by
 distinguishing among government levels it turns out that the decentralized
 administrative bodies are much less efficient in the South in delivering
 public expenditure. 
Journal: Applied Economics 
Pages: 989-1002 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721083 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:989-1002




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen 
Author-X-Name-First: Chung-Hua 
Author-X-Name-Last: Shen 
Author-Name: Shyh-Wei Chen 
Author-X-Name-First: Shyh-Wei 
Author-X-Name-Last: Chen 
Author-Name: Chien-Fu Chen 
Author-X-Name-First: Chien-Fu 
Author-X-Name-Last: Chen 
Title: The dual characteristics of closed-end country funds: the role of risk 
Abstract:
  This article explores which of two hypotheses, market segmentation or
 investor sentiment, determines the behaviour of Closed-End Country Funds
 (CECFs) with the inclusion of risk factors. The risk factors are proxied
 volatility, as estimated with a Bivariate Markov-switching Autoregressive
 Conditional Heteroskedasticity (BSWARCH) model, which simultaneously
 includes foreign and US markets. Our findings are as follows. On average,
 a positive response is larger than a negative response in terms of
 absolute value. And, the market segmentation hypothesis with risk factors
 gains support in Mexico, where CECF returns are related to a market with
 low volatility but not to one with high volatility. Third, the investor
 sentiment hypothesis, which argues that CECF returns are not responsive to
 foreign markets, is weakly supported in Brazil, the Philippines, Indonesia
 and, to a lesser degree, in Germany. 
Journal: Applied Economics 
Pages: 1003-1013 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721018 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1003-1013




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Demoussis 
Author-X-Name-First: Michael 
Author-X-Name-Last: Demoussis 
Author-Name: N. Giannakopoulos 
Author-X-Name-First: N. 
Author-X-Name-Last: Giannakopoulos 
Author-Name: S. Zografakis 
Author-X-Name-First: S. 
Author-X-Name-Last: Zografakis 
Title: Native-immigrant wage differentials and occupational segregation in the Greek labour market 
Abstract:
  This article explores native-immigrant wage differentials in the Greek
 labour market. Data from the most recent Greek Household Budget Survey
 (2004-05) were employed, four alternative occupational categories were
 considered and occupational choice was explicitly modelled. Controlling
 for occupational selectivity, occupation-specific wage regressions for
 representative samples of employed native and immigrant workers were
 estimated and an augmented decomposition technique was utilized to analyse
 inter and intra occupation wage differentials. The obtained results
 demonstrate that roughly 48% of the average wage differential cannot be
 explained by differences in observed characteristics and that the larger
 component of this unexplained part is due to asymmetrical occupational
 access by native and immigrant workers. 
Journal: Applied Economics 
Pages: 1015-1027 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721000 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721000 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1015-1027




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Rezitis 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Rezitis 
Title: Agricultural productivity and convergence: Europe and the United States 
Abstract:
  This article applies the Window Malmquist Index (WMI) approach to measure
 changes in agricultural Total Factor Productivity (TFP) for the United
 States and a sample of nine European countries for the period 1973 to
 1993. The dataset used in this article is obtained from Ball et al.
 (2001). The WMI is constructed by combining Data Envelopment Analysis,
 window analysis with the Malmquist index approach. Furthermore, the
 'Kruskal and Wallis rank test' is used for testing frontier shifts among
 observed periods. The article also explores the question of convergence in
 TFP across the countries under consideration, by testing for &#x3b2;- and
 &#x3c3;-convergence, as well as for stochastic or long-run convergence.
 The results show wide variation in the rate of TFP growth across countries
 with an average trend growth rate of 1.62%. The results indicate the
 presence of &#x3b2;-convergence but the absence of &#x3c3;-convergence for
 the full period under consideration but the presence of both &#x3b2;- and
 &#x3c3;-convergence for the sub-period 1983 to 1993. Finally, a wide
 spectrum of panel unit root test results support the presence of long-run
 convergence among the sample countries. 
Journal: Applied Economics 
Pages: 1029-1044 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1029-1044




Template-Type: ReDIF-Article 1.0
Author-Name: Santiago Budria 
Author-X-Name-First: Santiago 
Author-X-Name-Last: Budria 
Title: Schooling and the distribution of wages in the European private and public sectors 
Abstract:
  International research has shown that schooling enhances within-groups
 wage dispersion. This assessment is typically based on private sector data
 and, up to date, the inequality implications of schooling have not been
 documented for the public sector. This article uses recent data from eight
 European countries to explicitly take into account differences between the
 private and public sectors. Using quantile regression, the article
 describes the effects of schooling on the location and shape of the
 conditional wage distribution in each sector. While the average impact of
 schooling on wages is similar across sectors, the impact of schooling on
 within-groups dispersion is found to be substantially larger in the
 private sector than in the public sector. This finding warns that the
 effects of the European educational expansion on overall within-groups
 dispersion may be lower than previously thought. 
Journal: Applied Economics 
Pages: 1045-1054 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721109 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721109 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1045-1054




Template-Type: ReDIF-Article 1.0
Author-Name: Sheng-Tung Chen 
Author-X-Name-First: Sheng-Tung 
Author-X-Name-Last: Chen 
Author-Name: Chih-Ching Yang 
Author-X-Name-First: Chih-Ching 
Author-X-Name-Last: Yang 
Author-Name: Wei-Chun Tseng 
Author-X-Name-First: Wei-Chun 
Author-X-Name-Last: Tseng 
Author-Name: Chi-Chung Chen 
Author-X-Name-First: Chi-Chung 
Author-X-Name-Last: Chen 
Title: Options using a collective lottery to ration vaccines during an influenza pandemic 
Abstract:
  For many countries, the best way to counter an influenza pandemic is to
 provide citizens with a pandemic vaccine. However, since the global supply
 of the vaccines is far smaller than the quantity demanded, how to allocate
 the limited vaccines can be a very challenging task for them. In this
 study, we introduce a collective lottery mechanism that allocates vaccines
 as fairly as the traditional lottery, while also offering more options for
 family members or those who are close so that they can choose the joint
 probability of successes that can maximize their welfare. This mechanism
 thus gives rise to a Pareto improvement over the traditional lottery. Our
 empirical study uses the US and the UK as examples in sequential
 collective lotteries that are simulated to prove that such an improvement
 while maintaining fairness, in fact, exists. 
Journal: Applied Economics 
Pages: 1055-1065 
Issue: 8 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721091 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721091 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1055-1065




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Hanafiah Harvey 
Author-X-Name-First: Hanafiah 
Author-X-Name-Last: Harvey 
Title: The J-curve: Malaysia versus her major trading partners 
Abstract:
  Currency depreciation is said to worsen the trade balance before
 improving it, hence the J-curve phenomenon. Since introduction of
 cointegration and error-correction modelling, researchers have tried to
 distinguish the short-run effects of currency depreciation from its
 long-run effects. A few studies that have investigated the experience of
 Malaysia, have relied upon aggregate trade data and have found no strong
 support for a significant relation between the real value of the ringgit
 and the Malaysian trade balance. In this article, we disaggregate the data
 by country and consider Malaysia's bilateral trade balance with her 14
 largest trading partners. Using bound testing approach to cointegration
 and error-correction modelling, we provide some support for the J-curve
 hypothesis. 
Journal: Applied Economics 
Pages: 1067-1076 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721158 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721158 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1067-1076




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Sencicek 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Sencicek 
Author-Name: Kamal Upadhyaya 
Author-X-Name-First: Kamal 
Author-X-Name-Last: Upadhyaya 
Title: Are devaluations contractionary? The case of Turkey 
Abstract:
  This article studies the output effects of currency devaluation in Turkey
 using annual data from 1970 to 2004. An empirical model that incorporates
 monetary, fiscal and other external variables in addition to exchange
 rates is developed. Before estimating the model, time-series properties of
 the data are diagnosed. Two forms of the model, one with real exchange
 rate and the other with nominal exchange rate and relative price level
 (foreign-to-domestic price ratio) are estimated. The results suggest that
 devaluation is contractionary in the short run, expansionary in the medium
 run and neutral in the long run, and the effects emanate from nominal
 devaluation and not from the changes in relative price level. 
Journal: Applied Economics 
Pages: 1077-1083 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721208 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721208 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1077-1083




Template-Type: ReDIF-Article 1.0
Author-Name: Beat Hintermann 
Author-X-Name-First: Beat 
Author-X-Name-Last: Hintermann 
Author-Name: Anna Alberini 
Author-X-Name-First: Anna 
Author-X-Name-Last: Alberini 
Author-Name: Anil Markandya 
Author-X-Name-First: Anil 
Author-X-Name-Last: Markandya 
Title: Estimating the value of safety with labour market data: are the results trustworthy? 
Abstract:
  We use a panel dataset of UK workers, combined with risk data at the
 four-digit industry level, to look for evidence of compensating wage
 differentials for workplace risk. We discuss various econometric problems
 associated with the hedonic wage approach, namely the instability of the
 estimates to specification changes, unobserved heterogeneity and
 endogeneity. We find evidence of significant compensating wage
 differentials and Values of a Statistical Life (VSL) figures only under
 the most restrictive assumptions, i.e. when we assume that there is no
 unobserved heterogeneity and that all regressors are exogenous. However,
 the VSL values are large and vary dramatically with the inclusion or
 exclusion of industry and/or occupation dummies, as well as with the
 addition of nonfatal risk. When we specify models that allow for
 heterogeneity and endogeneity of risk and of other regressors, we find no
 evidence of compensating wage differentials. We conclude that if
 compensating differentials for risk exists, econometric problems and the
 changing nature of labour markets prevent us from observing them. We also
 conclude that models and techniques for panel data that account for
 unobserved heterogeneity and endogeneity present a completely different
 picture about compensating wage differentials than that inferred by most
 wage-risk studies, which have generally used single cross-sections of
 data. 
Journal: Applied Economics 
Pages: 1085-1100 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802260940 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1085-1100




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Groothuis 
Author-X-Name-First: Peter 
Author-X-Name-Last: Groothuis 
Author-Name: Paul Gabriel 
Author-X-Name-First: Paul 
Author-X-Name-Last: Gabriel 
Title: Positive assortative mating and spouses as complementary factors of production: a theory of labour augmentation 
Abstract:
  This article develops a model of intellectual labour augmentation to
 explain both the marriage wage premium and educational assortative mating.
 We suggest that husbands and wives are complementary factors of production
 where a spouse's education and skills augment their partner's productivity
 and earnings potential. We test this proposition using data from the 2000
 US Census of Population and the 2003 Current Population Survey. Our
 results indicate that for working couples the marriage premium for
 husbands and wives is directly related to the education level of their
 spouses-suggesting that positive assortative mating may be attributable to
 the labour market effects of intellectual augmentation of married
 households. 
Journal: Applied Economics 
Pages: 1101-1111 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721141 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1101-1111




Template-Type: ReDIF-Article 1.0
Author-Name: Tseng-Chung Tang 
Author-X-Name-First: Tseng-Chung 
Author-X-Name-Last: Tang 
Title: Effects of announcements of reorganization outcome 
Abstract:
  Less is known about whether the market perceives the final resolution of
 post-reorganization filing to be idiosyncratic or to carry endemic
 implications for the corresponding industries. This study observes the
 presence of intra-industry information transfers; the magnitude and
 direction of the reactions in response to three separate resolution
 outcome differs in a systematic way across industry portfolios.
 Specifically, portfolio rivals that are affected by competitive
 realignments in the industry experience stock price reactions in the
 opposite manner to those of the distressed firms, thus suggesting dominant
 competitive effects. In addition, this study reveals that the
 discriminatory power and forecast performance of three hybrid neuro-fuzzy
 models are stable and unimpaired across time and are generally superior in
 classifying Rival Cumulative Prediction Error (RCPE-) candidates. 
Journal: Applied Economics 
Pages: 1113-1124 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721174 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721174 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1113-1124




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Chu Chuang 
Author-X-Name-First: Chung-Chu 
Author-X-Name-Last: Chuang 
Author-Name: Yi-Hsien Wang 
Author-X-Name-First: Yi-Hsien 
Author-X-Name-Last: Wang 
Title: Electoral information in developed stock market: testing conditional heteroscedasticity in the market model 
Abstract:
  This investigates the influence of major electoral information on
 abnormal returns around the announcement date in the developed stock
 market and examines whether these explanatory variables are associated
 with observed cumulative abnormal returns using a regression analysis. The
 analytical results demonstrate that average abnormal returns are
 significantly negative before the date of the announcement of the results
 of a general election, on days -6 and -3, and after that announcement
 date, on days +4, +6 and +10. This phenomenon can be attributed to hedging
 activity of the investors to reduce risk. 
Journal: Applied Economics 
Pages: 1125-1131 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721117 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721117 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1125-1131




Template-Type: ReDIF-Article 1.0
Author-Name: Manolis Kritikos 
Author-X-Name-First: Manolis 
Author-X-Name-Last: Kritikos 
Author-Name: Raphael Markellos 
Author-X-Name-First: Raphael 
Author-X-Name-Last: Markellos 
Author-Name: Gregory Prastacos 
Author-X-Name-First: Gregory 
Author-X-Name-Last: Prastacos 
Title: Corporate real estate analysis: evaluating telecom branch efficiency in Greece 
Abstract:
  This article proposes productivity analysis for evaluating the relative
 efficiency in corporate real estate usage across decision-making units.
 Using data from the Greek Telecommunications Organization (GTO), we
 measure the productivity of 127 branches using the number of employees and
 the total area covered per building as inputs and the number of telephony
 access lines as outputs. We apply three nonparametric Data Envelopment
 Analysis (DEA) models assuming: Constant Returns to Scale (CRS), Variable
 Returns to Scale (VRS) and Slacks-Based Measures (SBM), respectively. We
 discuss how the proposed approach can provide real estate managers and
 analysts a multi-informational tool that allows the quantification of
 targets and may serve as a guide tool for the efficient employment of real
 estate assets. 
Journal: Applied Economics 
Pages: 1133-1143 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721166 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721166 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1133-1143




Template-Type: ReDIF-Article 1.0
Author-Name: I-Chun Tsai 
Author-X-Name-First: I-Chun 
Author-X-Name-Last: Tsai 
Author-Name: Ming-Chi Chen 
Author-X-Name-First: Ming-Chi 
Author-X-Name-Last: Chen 
Author-Name: Tai Ma 
Author-X-Name-First: Tai 
Author-X-Name-Last: Ma 
Title: Modelling house price volatility states in the UK by switching ARCH models 
Abstract:
  This article analyses investment risk in the housing market by examining
 volatility properties of house prices for the UK. We use both ARCH and
 GARCH models to estimate price conditional heteroscedasticity and find
 evidence of a time-varying property in the volatilities of the house price
 series. We then use the SWARCH model and find there are three volatility
 states in the price series. Our estimations suggest the UK housing markets
 are relatively stable and different states do not switch very often. The
 magnitude of high price volatility is as high as 20.99 times of the low
 volatility for the older housing market and 14 times of the low volatility
 for the new housing market. In addition, the older housing market is less
 efficient than the new housing market, since the impacts of events on the
 volatility state of the older house prices is more lasting than in new
 housing market. 
Journal: Applied Economics 
Pages: 1145-1153 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721133 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721133 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1145-1153




Template-Type: ReDIF-Article 1.0
Author-Name: J. -H. Chen 
Author-X-Name-First: J. -H. 
Author-X-Name-Last: Chen 
Author-Name: C. -Y. Huang 
Author-X-Name-First: C. -Y. 
Author-X-Name-Last: Huang 
Title: An analysis of the spillover effects of exchange-traded funds 
Abstract:
  This article used the Generalized Autoregressive Conditional
 Heteroscedasticity-Autoregressive Moving Average (GARCH-ARMA) and the
 exponentially Generalized Autoregressive Conditional
 Heteroscedasticity-Autoregressive Moving Average (EGARCH-ARMA) models to
 study the impact of the spillover and the leverage effects on returns and
 volatilities of stock index and Exchange Trade Fund (ETF) for developed
 and emerging markets. Previous unexpected returns for developed and
 emerging markets which have an opposite influence pattern on ETFs' returns
 were identified. The spillover effects from returns are excellent for Hong
 Kong, followed by Singapore. Meanwhile, Taiwan's stock index return was
 recorded to have a strong negative impact on ETF return. Notably, this
 article shows that the spillover effects on stock index and ETF
 volatilities existed with bilateral influences. Despite a strong positive
 asymmetric volatility effect in Korea's ETF market, the leverage effect
 appears to play important roles in the explanation of both stock index and
 ETF returns. 
Journal: Applied Economics 
Pages: 1155-1168 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721182 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721182 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1155-1168




Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Hsin Huang 
Author-X-Name-First: Tai-Hsin 
Author-X-Name-Last: Huang 
Author-Name: Ying-Ting Liao 
Author-X-Name-First: Ying-Ting 
Author-X-Name-Last: Liao 
Author-Name: Li-Chih Chiang 
Author-X-Name-First: Li-Chih 
Author-X-Name-Last: Chiang 
Title: An examination on the cost efficiency of the banking industry under multiple output prices' uncertainty 
Abstract:
  This article formulates a behavioural model of profit maximization, which
 explicitly incorporates both multiple output prices' risk and safety-first
 practice. This theoretical model is specifically suitable for
 investigating financial institutions, whose output prices frequently
 encounter a variety of risks, such as loan defaults/arrears. The sample
 banks are empirically found to be highly risk-averse. Furthermore, risk
 preferences exert little effect on the technical efficiency estimates,
 whereas the same estimates obtained by the standard fixed-effect model
 under certainty tend to be overestimated. Evidence is found that a
 specialized bank offering a single product with a larger scale of
 production will be preferable in an uncertain atmosphere. 
Journal: Applied Economics 
Pages: 1169-1182 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721190 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721190 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1169-1182




Template-Type: ReDIF-Article 1.0
Author-Name: Tay-Cheng Ma 
Author-X-Name-First: Tay-Cheng 
Author-X-Name-Last: Ma 
Title: Do prices respond asymmetrically to cost changes? 
Abstract:
  This article investigates price asymmetry by using an almost complete
 sample of Taiwanese industries to see whether output prices respond faster
 to cost increases than they do to decreases. In contrast with the earlier
 literature, the evidence shows that positive price asymmetry cannot be
 applied to all industries, especially those industries with rapid
 productivity growth. The evidence also indicates that firms exhibiting
 fast (slow) productivity growth see their prices react less (more) to cost
 increases than to cost decreases. 
Journal: Applied Economics 
Pages: 1183-1196 
Issue: 9 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721240 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721240 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1183-1196




Template-Type: ReDIF-Article 1.0
Author-Name: David Hineline 
Author-X-Name-First: David 
Author-X-Name-Last: Hineline 
Title: Long-run impacts of inflation across sectors in a small sample of countries 
Abstract:
  This article investigates the long-run effects of inflation on economic
 output for 10 sectors of the economy, with a sample of 7 countries. The
 analysis is done using long-run restrictions in a vector autoregression
 and reports long-run multipliers with bootstrapped confidence bands. The
 results suggest that some sectors seem to be affected differently than
 others, as well as significant heterogeneity across countries. The results
 suggest the strongest effects in the low inflation countries Germany and
 Japan as has been found in similar studies. In contrast to research using
 growth regressions, the evidence suggests a positive long-run effect of
 inflation on output. 
Journal: Applied Economics 
Pages: 1197-1207 
Issue: 10 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721307 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721307 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1197-1207




Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Hao Chen 
Author-X-Name-First: Wen-Hao 
Author-X-Name-Last: Chen 
Title: The impact of the employment insurance repayment policy: nonexperimental approaches 
Abstract:
  This research examines the impact of the strengthened repayment provision
 under the Employment Insurance (EI) system in Canada. The provision has
 introduced an increase in benefit repayment rates and a reduction in the
 repayment threshold. Without a randomized experiment, this article uses
 various nonexperimental approaches, particularly matching, to estimate the
 policy effect. Using data from the Survey of Changes in Employment (CIE)
 and the Survey of Labour and Income Dynamics (SLID), the results suggest
 that the new repayment policy has reduced the probabilities of filing a
 claim among workers whose annual income is equal to or greater than $48
 750. The estimated decline in the claim rate ranges between 6 and 12
 percentage points, depending on the datasets. The results appear to be
 robust regardless of the methods of estimation. 
Journal: Applied Economics 
Pages: 1209-1226 
Issue: 10 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721315 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721315 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1209-1226




Template-Type: ReDIF-Article 1.0
Author-Name: Akhter Faroque 
Author-X-Name-First: Akhter 
Author-X-Name-Last: Faroque 
Author-Name: William Veloce 
Author-X-Name-First: William 
Author-X-Name-Last: Veloce 
Title: Fundamentals versus the leading index-the forecasting of Canada's output growth since 1991: an encompassing approach 
Abstract:
  We evaluate the ability of Statistics Canada's Composite Leading Index to
 forecast Canada's real Gross Domestic Product (GDP) growth rate in the
 backdrop of the Duguay (1994, JME) model and also the dynamic and the
 error-correction variants of the Duguay model, that already include the
 'fundamentals' of the Canadian business cycle. The results show that
 integrating the index in these models substantially improve the in-sample
 fit of the models and also provide an explanation for the 'perplexingly'
 large influence of the US real GDP on aggregate spending in the Canadian
 economy. Out-of-sample forecasts over the inflation-targeting regime
 (January 1991-April 2004), evaluated using the forecast encompassing
 tests, confirm that the index contains an important amount of new
 information about the future growth rate, quite apart from the information
 contained in the fundamentals. 
Journal: Applied Economics 
Pages: 1227-1243 
Issue: 10 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721364 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721364 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1227-1243




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Luis Jimenez 
Author-X-Name-First: Juan Luis 
Author-X-Name-Last: Jimenez 
Author-Name: Jordi Perdiguero 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Perdiguero 
Title: Regional finance and competition policy: the Canary Islands petrol market 
Abstract:
  Market competition levels affect all agents of an economy: businesses,
 consumers and the State. Traditional analysis has evaluated the State's
 effects on the other agents, but no analysis has been conducted regarding
 the inverse relationship. Thus, the aim of this study is to estimate the
 tributary income losses that low levels of competition in the retail
 petrol market could cause in it, using the data from Canary Islands
 Autonomous Community. First, we will use Parker and Roller's methodology
 (1997) to measure the level of competition and confirm a deficiency. Then,
 using estimated rates, we will determine the differences that would appear
 in tributary income if the market were to behave as a Cournot's model. Our
 results show that the lack of competition causes a substantial loss of
 tributary income for this region, somewhere between 5and 10% of the real
 income from the tax on unleaded petrol for the year 2004. 
Journal: Applied Economics 
Pages: 1245-1255 
Issue: 10 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721224 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721224 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1245-1255




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Macri 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Macri 
Author-Name: Michael McAleer 
Author-X-Name-First: Michael 
Author-X-Name-Last: McAleer 
Author-Name: Dipendra Sinha 
Author-X-Name-First: Dipendra 
Author-X-Name-Last: Sinha 
Title: On the robustness of alternative rankings methodologies: Australian and New Zealand economics departments, 1988 to 2002 
Abstract:
  Just as friendly arguments based on an ignorance of facts eventually led
 to the creation of the definitive Guinness Book of World Records, any
 argument about university rankings has seemingly been a problem without a
 solution. To state the obvious, alternative rankings methodologies can and
 do lead to different rankings. This article evaluates the robustness of
 rankings of Australian and New Zealand economics teaching departments for
 1988 to 2002 and 1996 to 2002 using alternative rankings methodologies,
 and compares the results with the rankings obtained by Macri and Sinha
 (2006). In the overall mean rankings for both 1988 to 2006 and 1996 to
 2002, the University of Melbourne is ranked first, followed by UWA and
 ANU. 
Journal: Applied Economics 
Pages: 1257-1268 
Issue: 10 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721265 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721265 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1257-1268




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Victoria Esteban 
Author-X-Name-First: Maria Victoria 
Author-X-Name-Last: Esteban 
Author-Name: Susan Orbe-Mandaluniz 
Author-X-Name-First: Susan 
Author-X-Name-Last: Orbe-Mandaluniz 
Title: A nonparametric approach for estimating betas: the smoothed rolling estimator 
Abstract:
  In this study an alternative nonparametric estimator to the Fama and
 MacBeth approach for the Capital Asset Pricing Model (CAPM) estimation is
 proposed. Betas and risk premiums are estimated simultaneously in order to
 increase the explanatory power of the proxy for betas. A data-driven
 method is proposed for selecting the smoothness degrees, which are
 directly related to the subsample sizes. Based on this relation, the
 traditional estimator is obtained as a particular case. Contrary to the
 results obtained in other studies our empirical evidence for Spanish
 market data is favourable to the CAPM. 
Journal: Applied Economics 
Pages: 1269-1279 
Issue: 10 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721257 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721257 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1269-1279




Template-Type: ReDIF-Article 1.0
Author-Name: Sami Keskek 
Author-X-Name-First: Sami 
Author-X-Name-Last: Keskek 
Author-Name: Mehmet Orhan 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Orhan 
Title: Inflation and inflation uncertainty in Turkey 
Abstract:
  This article investigates the relationship between inflation and
 inflation uncertainty, and the impact of monetary policy on this
 relationship using monthly Turkish inflation data over January 1984
 to-October 2005. The results from various types of GARCH-M models indicate
 that higher inflation rates lead to greater inflation uncertainty. On the
 other hand, the effect of inflation uncertainty on inflation is found to
 be negative due to stabilization motives' dominating the opportunistic
 incentives of monetary authorities. We find strong evidence to support the
 view that inflation-oriented monetary policy has power to reduce the
 inflation persistence and eliminate uncertainty. 
Journal: Applied Economics 
Pages: 1281-1291 
Issue: 10 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721273 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721273 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1281-1291




Template-Type: ReDIF-Article 1.0
Author-Name: Natalia Pimenta Monteiro 
Author-X-Name-First: Natalia Pimenta 
Author-X-Name-Last: Monteiro 
Title: Using propensity matching estimators to evaluate the impact of privatization on wages 
Abstract:
  Whether the transfer of ownership rights to the private sector leads to a
 decline or increase in wage growth is theoretically ambiguous, given that
 the outcome depends on the uncertain interaction between firms and
 workers. Using propensity matching techniques, this article investigates
 the effects of privatization on wages in the Portuguese banking industry.
 The empirical results, obtained from Quadros de Pessoal for the period
 between 1989 and 1997, generally show a negative (positive) short-run
 (long-run) effect of privatization on relative wage growth for both men
 and women retained in the privatized firms. Moreover, the results show
 that the most educated and experienced (oldest) workers, as well as those
 in the high skill occupational categories, were more likely to experience
 a negative wage effect. 
Journal: Applied Economics 
Pages: 1293-1313 
Issue: 10 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721281 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721281 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1293-1313




Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Bagnai 
Author-X-Name-First: Alberto 
Author-X-Name-Last: Bagnai 
Title: Structural changes, cointegration and the empirics of Thirlwall's law 
Abstract:
  Thirlwall's law establishes a relation between the long-run growth rate,
 the growth of exports and the long-run income elasticity of imports. The
 estimation of this parameter requires cointegration techniques, which in
 turn require a large span of data, thus exposing the estimates to risks of
 structural changes. While this problem has been recognized in the
 literature, the evidence produced is still partial, being concerned with a
 very limited number of countries, and in some respects unsatisfactory. In
 this article we fill this gap by assessing Thirlwall's empirical
 regularity on a sample of 22 Organization for Economic Cooperation and
 Development (OECD) countries using econometric techniques that allow for
 the presence of a shift of unknown date in the long-run parameters. The
 results are generally supportive of Thirlwall's hypothesis and allow us to
 reconcile and qualify the evidence provided in the existing literature. 
Journal: Applied Economics 
Pages: 1315-1329 
Issue: 10 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721299 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721299 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1315-1329




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow 
Author-X-Name-First: Michael 
Author-X-Name-Last: Marlow 
Title: Do expenditures on tobacco control decrease smoking prevalence? 
Abstract:
  Effectiveness of tobacco control programmes in reducing smoking
 prevalence during 2001 to 2005 is examined. Tobacco control spending is
 found to exert no significant effects on smoking prevalence across the 50
 states. Cigarette prices are found to lower prevalence of daily smokers,
 but exert no effect on nondaily smoking prevalence. Several reasons are
 suggested for why these results might conflict with previous research.
 These include that most previous studies examined two states (California
 and Massachusetts) with long-standing tobacco control programmes and that
 most studies examined periods in which many of the states in their samples
 did not actively fund their programmes. Another reason may be that, unlike
 most previous studies, this study controls for the possibility that
 tobacco control spending is endogenous when, for example, states
 exhibiting relatively low smoking prevalence are also states with
 relatively high distaste for smoking and accordingly fund tobacco control
 programmes more generously. A negative relation between tobacco control
 spending and smoking prevalence does not necessarily indicate that higher
 spending causes lower prevalence when spending is endogenously determined. 
Journal: Applied Economics 
Pages: 1331-1343 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721505 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721505 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1331-1343




Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Durham 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Durham 
Author-Name: James Eales 
Author-X-Name-First: James 
Author-X-Name-Last: Eales 
Title: Demand elasticities for fresh fruit at the retail level 
Abstract:
  The obesity epidemic in the US and elsewhere has re-doubled efforts to
 understand determinants of the quality of consumers' diets. Part of the
 discussion has centered on the potential of 'fat taxes' and/or the
 subsidization of the purchase of fresh fruits and vegetables to coax
 consumers to better diets. Whether this discussion has merit or not,
 fundamental to the debate are the demand elasticities of the commodities
 involved. This study employs weekly data from several retail stores on
 fruit prices and sales to estimate elasticities of individual fruits.
 Estimates show consumers are more responsive to price than has been found
 previously. 
Journal: Applied Economics 
Pages: 1345-1354 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721356 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721356 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1345-1354




Template-Type: ReDIF-Article 1.0
Author-Name: Joakim Westerlund 
Author-X-Name-First: Joakim 
Author-X-Name-Last: Westerlund 
Author-Name: Silika Prohl 
Author-X-Name-First: Silika 
Author-X-Name-Last: Prohl 
Title: Panel cointegration tests of the sustainability hypothesis in rich OECD countries 
Abstract:
  This study reexamines the sustainability hypothesis by testing whether
 government revenues and expenditures for eight rich OECD countries between
 1977Q1 and 2005Q4 are cointegrated. For this purpose, a nonstationary
 panel data approach is adopted, which is general enough to permit for
 cross-country dependence as well as structural breaks representing major
 shifts in fiscal policy. In contrast to many earlier studies, the results
 reported in this study suggest that the sustainability hypothesis cannot
 be rejected. 
Journal: Applied Economics 
Pages: 1355-1364 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721323 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721323 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1355-1364




Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Agasisti 
Author-X-Name-First: Tommaso 
Author-X-Name-Last: Agasisti 
Author-Name: Geraint Johnes 
Author-X-Name-First: Geraint 
Author-X-Name-Last: Johnes 
Title: Heterogeneity and the evaluation of efficiency: the case of Italian universities 
Abstract:
  A random parameters stochastic frontier model is applied to Italian data
 in order to evaluate the cost function and efficiency of higher education
 institutions. The method yields useful information about
 inter-institutional variation in cost structure and technical efficiency.
 Returns to scale and scope are evaluated for the typical university, and
 it is found that these returns are almost ubiquitously decreasing, a
 finding with clear policy implications. 
Journal: Applied Economics 
Pages: 1365-1375 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721463 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721463 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1365-1375




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Norrbin 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Norrbin 
Author-Name: Aaron Smallwood 
Author-X-Name-First: Aaron 
Author-X-Name-Last: Smallwood 
Title: Generalized long memory and mean reversion of the real exchange rate 
Abstract:
  Definitive evidence regarding a rapid mean reversion of the real exchange
 rate is not present when using standard linear methodology, including unit
 root tests and fractional integration. To consider the robustness of these
 results, we use an encompassing model, the Gegenbauer AutoRegressive
 Moving Average (GARMA) model, which nests as special cases the existing
 linear methods. The GARMA model accommodates a complete notion of
 persistence and allows shocks to dissipate slowly in a cyclical manner. We
 find evidence supporting a weak version of purchasing power parity, where
 equilibrium errors are long memory with strongly persistent cycles.
 However, this new form of cyclical mean reversion is likely too slow to be
 economically meaningful. The inability to find a strong equilibrium
 attractor process, using a very general encompassing linear methodology
 provides support for the recent models that allow for a nonlinear
 attraction process and for shifting real exchange rate equilibria. 
Journal: Applied Economics 
Pages: 1377-1386 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721349 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721349 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1377-1386




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. 
Author-X-Name-Last: Bhaskara Rao 
Author-Name: Toani Takirua 
Author-X-Name-First: Toani 
Author-X-Name-Last: Takirua 
Title: The effects of exports, aid and remittances on output: the case of Kiribati 
Abstract:
  Country specific time-series models of the determinants of output for the
 small developing island countries in the Pacific region are relatively
 few. This article explores the applicability of the framework underlying
 Solow (1956) to analyse the determinants output in Kiribati for the period
 1970 to 2005. It is found that technical progress in Kiribati has been
 negative virtually offsetting the positive effects of factor accumulation.
 Aid and remittances have negative effects and exports have only a small
 positive effect in the short-run. 
Journal: Applied Economics 
Pages: 1387-1396 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721331 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721331 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1387-1396




Template-Type: ReDIF-Article 1.0
Author-Name: Leigh Drake 
Author-X-Name-First: Leigh 
Author-X-Name-Last: Drake 
Author-Name: Terence Mills 
Author-X-Name-First: Terence 
Author-X-Name-Last: Mills 
Title: Trends and cycles in Euro area real GDP 
Abstract:
  This article examines the time-series properties of real Gross Domestic
 Product (GDP) in the Euro area as a whole, both prior to and after the
 adoption of the Euro in January 1999. We employ the relatively recent
 'optimal approximation' band pass filter developed by Christiano and
 Fitzgerald (2003) in order to identify a Eurozone business cycle. We also
 utilize two alternative assumptions regarding the behaviour of the trend
 component of Euro area real GDP. The empirical results suggest that the
 single currency experiment appears to have reduced trend growth in the
 Eurozone, both ex ante during the Maastricht nominal convergence phase,
 and also ex post, during the period 2001Q1 to 2006Q1. With respect to
 cyclical behaviour, we identify a very robust measure of the Eurozone
 business cycle in the post-1994 period which does not appear to be
 sensitive to the particular assumption made regarding the trend rate of
 growth of real GDP. 
Journal: Applied Economics 
Pages: 1397-1401 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1397-1401




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Yuan Leon Li 
Author-X-Name-First: Ming-Yuan Leon 
Author-X-Name-Last: Li 
Title: Dynamic hedge ratio for stock index futures: application of threshold VECM 
Abstract:
  This study represents one of the first papers in stock-index-futures
 arbitrage literature to investigate the effects of arbitrage threshold on
 stock index futures hedging effectiveness by using threshold vector error
 correction model (hereafter threshold VECM). Moreover, in contrast to
 prior studies focusing on examining case studies involving mature stock
 markets, this study not only adopts US S&P 500 stock market as the sample
 but also adds an analysis of one emerging stock market, Hungarian BSI and
 examines the differences between them. Finally, this investigation employs
 a rolling estimation process to examine the impact of arbitrage threshold
 behaviours on the setting of futures hedging ratio. The empirical findings
 of this study are consistent with the following notions. First, arbitrage
 behaviour reduces co-movement between futures and spot markets and
 increases the volatility of both futures and spot markets. Second, this
 article denotes the outer regime of futures-spot market for the case of
 Hungarian BSI (US S&P 500) as a crisis (an unusual) condition. Moreover,
 arbitrage threshold behaviours make remarkable (unremarkable) shift on
 optimal hedge ratio between two different market regimes for the case of
 Hungarian BSI (US S&P 500). Finally, the framework involving
 regime-varying hedge ratio designed in this study provides a more
 efficient futures hedge ratio design for Hungarian BSI stock market, but
 not for US S&P 500 stock market. 
Journal: Applied Economics 
Pages: 1403-1417 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721380 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721380 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1403-1417




Template-Type: ReDIF-Article 1.0
Author-Name: Jalal Siddiki 
Author-X-Name-First: Jalal 
Author-X-Name-Last: Siddiki 
Title: The Ricardian equivalence hypothesis: evidence from Bangladesh 
Abstract:
  This article examines the Ricardian equivalence hypothesis (REH) and its
 sources of failure in the case of Bangladesh using various theoretical
 specifications, annual data from 1974-2001 and linear and nonlinear time
 series techniques. The general findings tend to invalidate the REH: a
 finite time horizon and the presence of liquidity-constrained individuals
 are the sources of deviation from the REH. Empirical results reveal that
 real per-capita private consumption (C) under various specifications is
 cointegrated generally at the 5% level with real per-capita income (Y),
 government expenditure before and after interest rate repayments (G and
 G2), taxes (T) and the interest rate (r). Results reveal that an increase
 in G, G2, T and r reduces C and that an increase in budget deficits raises
 trade deficits. These results highlight the importance of fiscal policies
 in boosting private consumption and controlling trade deficits, which are
 the prime goals of stabilization policies being followed by Bangladesh. 
Journal: Applied Economics 
Pages: 1419-1435 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721414 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721414 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1419-1435




Template-Type: ReDIF-Article 1.0
Author-Name: Jinliang Li 
Author-X-Name-First: Jinliang 
Author-X-Name-Last: Li 
Author-Name: Chihwa Kao 
Author-X-Name-First: Chihwa 
Author-X-Name-Last: Kao 
Author-Name: Wei David Zhang 
Author-X-Name-First: Wei David 
Author-X-Name-Last: Zhang 
Title: Bounded influence estimator for GARCH models: evidence from foreign exchange rates 
Abstract:
  Previous research indicates that the maximum likelihood estimates of
 Generalized Autoregressive Conditional Heteroscedasticity (GARCH) models
 on foreign exchange rates, under various distributional assumptions, are
 sensitive to the presence of outliers. The advantage of the proposed
 Bounded Influence Estimator (BIE) is that it limits the influence of a
 small subset of data and is asymptotically normal. The BIE provides more
 consistent and robust estimates than Maximum Likelihood Estimator (MLE)
 and semi-parametric estimator, both of which tend to underestimate
 volatility persistence due to outliers. It is thus robust to outliers and
 model misspecification. Results of BIE estimates of GARCH models on the
 exchange rate series of five major currencies indicate that BIE offers an
 efficient mechanism for down-weighting outlying observations and is a
 competitive alternative to MLE. 
Journal: Applied Economics 
Pages: 1437-1445 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721422 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721422 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1437-1445




Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yil Choi 
Author-X-Name-First: Yong-Yil 
Author-X-Name-Last: Choi 
Title: Relative government size in globalization and its welfare implications 
Abstract:
  As globalization spreads across the world, countries are experiencing
 growing competitive pressure in many fields. Since the role of government
 is needed to change in this global era, the so-called government-size
 debate has become fierce. This article provides a measure of relative
 government size in globalization, and clarifies the welfare effect of
 relative government size in globalization applying a simplified dynamic
 utility theoretical approach. The main finding is that there is no
 systematic relationship between relative government size and relative
 welfare in globalization; such relation depends on behavioural parameters
 such as the elasticity of inter-temporal substitution of consumption and
 the disutility of labour. This result suggests that finding prerequisites
 for government consumption to play a welfare-improving role in
 globalization is more beneficial than the government-size debate. 
Journal: Applied Economics 
Pages: 1447-1453 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721430 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721430 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1447-1453




Template-Type: ReDIF-Article 1.0
Author-Name: O. Henry 
Author-X-Name-First: O. 
Author-X-Name-Last: Henry 
Author-Name: N. Olekalns 
Author-X-Name-First: N. 
Author-X-Name-Last: Olekalns 
Title: Peacock and Wiseman's displacement hypothesis: some new long-run evidence for the UK 
Abstract:
  This article presents new evidence on the ability of Peacock and
 Wiseman's displacement hypothesis to explain temporal increases in the
 ratio of government expenditure to Gross Domestic Product (GDP) in the UK.
 Using univariate modelling techniques that are robust to structural
 changes in the underlying data generating process and a data set extending
 back to 1836, we find four instances where the ratio of expenditure to GDP
 displays an evidence of a structural break. Two of these breaks coincide
 with major social upheavals as predicted by the displacement hypothesis. 
Journal: Applied Economics 
Pages: 1455-1460 
Issue: 11 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036841003668873 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003668873 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1455-1460




Template-Type: ReDIF-Article 1.0
Author-Name: Nidhiya Menon 
Author-X-Name-First: Nidhiya 
Author-X-Name-Last: Menon 
Title: Investment credit and child labour 
Abstract:
  It is generally assumed that credit has a positive effect on children's
 schooling among poor households. This article shows that need not be the
 case when households obtain credit for investment purposes. In fact,
 investment loans may not have any effect on the likelihood of schooling
 for children who work in their family business. Our estimates confirm that
 this is the case; credit used to finance investments has no effect on the
 odds of schooling for employed children. This may be because investment
 loans increase children's labour productivity, which in turn increases the
 opportunity cost of schooling. The results of this study suggest that
 improving access to credit may not, by itself, constitute a solution to
 the problem of child labour in developing countries. 
Journal: Applied Economics 
Pages: 1461-1479 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721471 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721471 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1461-1479




Template-Type: ReDIF-Article 1.0
Author-Name: Jeff DeSimone 
Author-X-Name-First: Jeff 
Author-X-Name-Last: DeSimone 
Title: Drinking and academic performance in high school 
Abstract:
  I investigate the extent to which negative alcohol use coefficients in
 Grade Point Average regressions reflect unobserved heterogeneity rather
 than direct effects of drinking, using 2001 and 2003 Youth Risk Behaviour
 Survey data on high school students. Results illustrate that omitted
 factors are quite important. Drinking coefficient magnitudes fall
 substantially in regressions that control for risk and time preference,
 mental health, self-esteem and consumption of other addictive substances.
 Moreover, the impact of binge drinking is negligible for students who are
 less risk averse, heavily discount the future or use other drugs. However,
 effects that remain significant after accounting for unobserved
 heterogeneity and are relatively large for risk averse, future-oriented
 and drug-free students suggest that binge drinking might slightly worsen
 academic performance. Consistent with this, the relationship between
 grades and drinking without binging is small and insignificant on the
 extensive margin and positive on the intensive margin. 
Journal: Applied Economics 
Pages: 1481-1497 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721554 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721554 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1481-1497




Template-Type: ReDIF-Article 1.0
Author-Name: Veronique Genre 
Author-X-Name-First: Veronique 
Author-X-Name-Last: Genre 
Author-Name: Ramon Gomez Salvador 
Author-X-Name-First: Ramon Gomez 
Author-X-Name-Last: Salvador 
Author-Name: Ana Lamo 
Author-X-Name-First: Ana 
Author-X-Name-Last: Lamo 
Title: European women: why do(n't) they work? 
Abstract:
  To increase labour market participation is a major challenge currently
 faced by the EU, and attracting women into the labour force appears as a
 promising avenue to do so. Therefore, a clear understanding of what the
 factors influencing the evolution of female participation rates are in
 Europe is essential for a successful design of policy measures aiming at
 increasing participation rates. This article provides empirical evidence
 on the role that institutions have played in determining participation
 rates of women in the European labour markets. Our findings discard any
 doubt on the influence of institutions on women's participation in Europe.
 The strictness of labour market institutions negatively affects female
 participation rates. We also find that institutional features aimed at
 reconciling motherhood with professional life such as maternity leave
 schemes and part-time work favour participation rates of prime-age women.
 Additionally, fertility rates and education enrolment have been relevant
 for the evolution of participation rates during the sample period
 considered for prime-age and young females, respectively, while cohort
 effects drive the developments of older females. 
Journal: Applied Economics 
Pages: 1499-1514 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721547 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721547 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1499-1514




Template-Type: ReDIF-Article 1.0
Author-Name: Christophe Hurlin 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Hurlin 
Title: What would Nelson and Plosser find had they used panel unit root tests? 
Abstract:
  In this study, we systemically apply nine recent panel unit root tests to
 the same 14 macroeconomic and financial series as those considered in the
 seminal paper by Nelson and Plosser (1982). The data covers OECD countries
 from 1950 to 2003. Our results clearly point out the difficulty that
 applied econometricians would face when they want to get a simple and
 clear-cut diagnosis with panel unit root tests. We confirm the fact that
 panel methods must be very carefully used for testing unit roots in
 macroeconomic or financial panels. More precisely, we find mitigated
 results under the cross-sectional independence assumption, since the unit
 root hypothesis is rejected for many macroeconomic variables. When
 international cross-correlations are taken into account, conclusions
 depend on the specification of these cross-sectional dependencies. Two
 groups of tests can be distinguished. The first group tests are based on a
 dynamic factor structure or an error component model. In this case, the
 nonstationarity of common factors (international business cycles or growth
 trends) is not rejected, but the results are less clear with respect to
 idiosyncratic components. The second group tests are based on more general
 specifications. Their results are globally more favourable to the unit
 root assumption. 
Journal: Applied Economics 
Pages: 1515-1531 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721539 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721539 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1515-1531




Template-Type: ReDIF-Article 1.0
Author-Name: Vincent Bouvatier 
Author-X-Name-First: Vincent 
Author-X-Name-Last: Bouvatier 
Title: Hot money inflows and monetary stability in China: how the People's Bank of China took up the challenge 
Abstract:
  Nonforeign direct investment capital inflows in China were particularly
 strong in 2003 and 2004. They have led to a rapid accumulation of
 international reserves and they may have provided excess liquidity to the
 Chinese economy. This article, investigates how the central bank of China
 managed the rapid build-up of international reserves in 2003 and 2004. The
 relationship between real international reserves and real domestic credit
 is examined with a Vector Error Correction Model, estimated on monthly
 data from January 1997 to March 2006. Empirical results show that this
 relationship was negative, which suggests that the central bank succeeded
 in slowing down real domestic credit when real international reserves
 increased. Direct and indirect Granger causality tests are implemented to
 show how the People's Bank of China proceeded to control domestic credit. 
Journal: Applied Economics 
Pages: 1533-1548 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721513 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721513 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1533-1548




Template-Type: ReDIF-Article 1.0
Author-Name: Julio Lucia 
Author-X-Name-First: Julio 
Author-X-Name-Last: Lucia 
Author-Name: Angel Pardo 
Author-X-Name-First: Angel 
Author-X-Name-Last: Pardo 
Title: On measuring speculative and hedging activities in futures markets from volume and open interest data 
Abstract:
  This article provides a critical assessment of the line of research that
 measures speculative and hedging activities in futures markets from volume
 and open interest data. It makes several contributions. First, a detailed
 theoretical analysis of the measures proposed in the previous literature
 as proxies for speculative activity clarifies the circumstances in which
 they fail, as well as the assumptions that have to be made, when they are
 used as intended. Second, we propose a new way of combining the volume and
 the open interest figures, which provides additional information regarding
 the type of trading activity that takes place in the market on a given
 date. Finally, we analyse empirically the basic statistical properties of
 all the ratios when they are applied to real data for some of the stock
 index futures contracts most actively traded in the world. This empirical
 analysis shows the diverse behaviour of the ratios when they are applied
 to a common sample of real data, which confirms our previous theoretical
 findings. Our contributions should be taken into account when any of the
 measures is used as a proxy for the relative importance of speculative
 demand in empirical analyses. 
Journal: Applied Economics 
Pages: 1549-1557 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721489 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721489 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1549-1557




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Macri 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Macri 
Author-Name: Dipendra Sinha 
Author-X-Name-First: Dipendra 
Author-X-Name-Last: Sinha 
Title: How much influence do economics professors have on rankings? The case of Australia and New Zealand 
Abstract:
  This study ranks Australian and New Zealand economics teaching
 departments on the basis of the research productivity of its economics
 professors in economics teaching departments using quality adjusted
 journal articles listed on the ECONLIT database for the periods 1988 to
 2002 and for 1996 to 2002. The per capita research productivity of
 professors is highest for University of Melbourne, University of Western
 Australia and University of Canterbury. For a number of economics
 departments, the per capita research productivity is lower than the
 research productivity of all faculty members, using a number of criteria
 for 1988-2002 and 1996-2002. These universities are University of
 Auckland, Royal Melbourne Institute of Technology University, Griffith
 University and Macquarie University. 
Journal: Applied Economics 
Pages: 1559-1567 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721562 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721562 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1559-1567




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Bauer 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Bauer 
Author-Name: Mathias Sinning 
Author-X-Name-First: Mathias 
Author-X-Name-Last: Sinning 
Title: Blinder-Oaxaca decomposition for Tobit models 
Abstract:
  In this article, a decomposition method for Tobit models is derived,
 which allows the differences in observed outcome variables between two
 groups to be decomposed into a part that is explained by differences in
 observed characteristics and a part attributable to differences in the
 estimated coefficients. Monte Carlo simulations demonstrate that in the
 case of censored dependent variables this decomposition method produces
 more reliable results than the conventional Blinder-Oaxaca decomposition
 for linear regression models. Finally, our method is applied to a
 decomposition of the gender wage gap using German data. 
Journal: Applied Economics 
Pages: 1569-1575 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721612 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721612 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1569-1575




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Santos 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Santos 
Author-Name: Maria Alberta Oliveira 
Author-X-Name-First: Maria Alberta 
Author-X-Name-Last: Oliveira 
Title: Assessing French inflation persistence with impulse saturation break tests and automatic general-to-specific modelling 
Abstract:
  This article has three different motivations. Firstly, we wish to
 contribute to the debate on whether French inflation has been persistent
 since the mid-eighties. Empirical evidence in this domain has been mixed.
 We use the standard method of testing for breaks in the mean of the
 inflation series to conclude whether possible unit root findings are the
 result of neglected breaks. Then, we build standard autoregressive
 representations of inflation, using an automatic general-to-specific
 approach. We conclude against inflation persistence in the sample period,
 and the point estimates of persistence we obtain are several percentage
 points below those achieved with other break tests and model selection
 methods. Moreover, our final model is congruent. Secondly, we provide the
 first empirical application of the new impulse saturation break test. The
 resulting estimates of the break dates are in line with other literature
 findings and have a sound economic meaning, confirming the good
 performance the test had revealed in theoretical and simulation studies.
 Finally, we also illustrate the shortcomings of the Bai-Perron test when
 applied to a small sample with high serial correlation. Indeed, we show
 the Bai-Perron break dates' estimates would not allow us to build a
 congruent autoregressive representation of inflation. 
Journal: Applied Economics 
Pages: 1577-1589 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721521 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721521 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1577-1589




Template-Type: ReDIF-Article 1.0
Author-Name: Efthimia Tsakiridou 
Author-X-Name-First: Efthimia 
Author-X-Name-Last: Tsakiridou 
Author-Name: Agapi Somwaru 
Author-X-Name-First: Agapi 
Author-X-Name-Last: Somwaru 
Author-Name: Konstadinos Mattas 
Author-X-Name-First: Konstadinos 
Author-X-Name-Last: Mattas 
Title: Middle East and North Africa countries' agricultural export potentials under trade reforms 
Abstract:
  Middle East and North Africa (MENA) countries' future stand in the
 world's economy depends to a large extent on the potentials of their
 agriculture to perform in a free trade world. European Union (EU) is the
 largest market for agricultural products of MENA countries, though new
 outlets and new partnerships can expand the market of their products.
 Enhancing agriculture's potentials safeguards the economy's general
 expansion and impede the flee of MENA countries' huge labour reserves to
 the developed world. In this work, introducing a few possible trade
 reforms, a general equilibrium model is employed to assess the impacts
 upon region's export potentials and welfare changes. Selecting certain
 distinct scenarios from a wide spectrum of anticipated trade reforms, and
 feeding them into the model, insights on the direction of the expected
 changes and rough estimates of accrued benefits can be extracted. The
 model results suggest that the region might benefit the most under special
 provisions for developing countries in a World Trade Organization (WTO)
 agreement, while in the case of EU-Med agreement, agricultural trade will
 benefit MENA countries and can induce economic growth through the
 expansion of agricultural exports. 
Journal: Applied Economics 
Pages: 1591-1599 
Issue: 12 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721497 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721497 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1591-1599




Template-Type: ReDIF-Article 1.0
Author-Name: Yuqing Zheng 
Author-X-Name-First: Yuqing 
Author-X-Name-Last: Zheng 
Author-Name: Henry Kinnucan 
Author-X-Name-First: Henry 
Author-X-Name-Last: Kinnucan 
Author-Name: Harry Kaiser 
Author-X-Name-First: Harry 
Author-X-Name-Last: Kaiser 
Title: Measuring and testing advertising-induced rotation in the demand curve 
Abstract:
  Advertising can rotate the demand curve if it changes the dispersion of
 consumers' valuations. We provide an elasticity form measure of the
 advertising-induced demand curve rotation in five demand models and test
 for its presence in the US nonalcoholic beverage market. The Almost Ideal
 Demand System (AIDS) model reveals that doubling advertising spending
 rotates the demand curves clockwise for milk, and coffee and tea with
 associated slope changes of 7 and 12%. Soft-drink advertising rotates its
 demand curve counterclockwise. Our policy suggestion is that milk and
 soft-drink firms time advertising to coincide with high-and low-price
 periods, respectively. 
Journal: Applied Economics 
Pages: 1601-1614 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721570 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1601-1614




Template-Type: ReDIF-Article 1.0
Author-Name: Li Rui 
Author-X-Name-First: Li 
Author-X-Name-Last: Rui 
Author-Name: Zhu Xi 
Author-X-Name-First: Zhu 
Author-X-Name-Last: Xi 
Title: Econometric analysis of credit constraints of chinese rural households and welfare loss 
Abstract:
  Using recent survey data of Chinese rural households, we estimate the
 impact of credit constraints on Chinese rural households' income and
 consumption. Results reveal that 71% of rural households are rationed in
 the credit markets. The credit constraints have significant negative
 effects on the income and consumption of rural households. The
 expenditures on education and medical treatments, the size of land
 holdings, household head education and the balance of financial capital
 all affect the demand of credit. Personal connections (relationship) are
 the most important determinate of the supply for credit. 
Journal: Applied Economics 
Pages: 1615-1625 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721604 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721604 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1615-1625




Template-Type: ReDIF-Article 1.0
Author-Name: Janice Hauge 
Author-X-Name-First: Janice 
Author-X-Name-Last: Hauge 
Author-Name: Mark Jamison 
Author-X-Name-First: Mark 
Author-X-Name-Last: Jamison 
Title: Effects of using specific versus general data in social program research 
Abstract:
  We present a comparison of results of similar analyses of a particular
 social program using two sources of data: one representative of the
 general population, and one representative of the population that actually
 is eligible for the social program. To do this, we focus on a particular
 public assistance program as implemented in Florida as our public policy
 program of choice. We compare the results of an analysis of the program's
 participation rates using US Census data for the general population of
 Florida to the results of the exact same model using a dataset that
 includes only the population of Florida that is actually eligible for the
 program. We find that while generally signs of effects remain the same,
 they do not always remain the same; moreover, significance differs, and
 the marginal effects of various demographic and socio-economic factors on
 program participation rates vary greatly. We submit that such differences
 are important for policymakers to recognize so that they can effectively
 target programs to those individuals and geographic areas most in need of
 such programs. 
Journal: Applied Economics 
Pages: 1627-1639 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721653 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721653 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1627-1639




Template-Type: ReDIF-Article 1.0
Author-Name: Subal Kumbhakar 
Author-X-Name-First: Subal 
Author-X-Name-Last: Kumbhakar 
Title: Efficiency and productivity of world health systems: where does your country stand? 
Abstract:
  This article deals with estimating efficiency of world health systems
 using panel data on World Health Organization (WHO) member countries. The
 Stochastic Frontier (SF) approach is used for this purpose. We evaluate
 absolute efficiency as well as rankings and their sensitivity across
 alternative model specifications using both output-maximizing and
 cost-minimizing frameworks. We also compare productivity of health service
 (among countries) derived from the output-maximizing and cost-minimizing
 models. Results show that efficiency rankings of countries vary
 substantially depending on whether the goal of healthcare provision is
 output maximization or health cost minimization. The same applies to
 different SF model specifications. 
Journal: Applied Economics 
Pages: 1641-1659 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721588 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721588 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1641-1659




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Seema Narayan 
Author-X-Name-First: Seema 
Author-X-Name-Last: Narayan 
Title: Is there a unit root in the inflation rate? New evidence from panel data models with multiple structural breaks 
Abstract:
  In this article, we examine whether or not the inflation rate for 17 OECD
 countries can be modelled as a stationary process. We find that (1)
 conventional univariate unit root tests without any structural breaks
 generally reveal that the inflation rate contains a unit root; (2) the
 KPSS univariate test with multiple structural breaks reveals that for 10
 out of 17 countries inflation is stationary; and (3) the KPSS panel unit
 root test reveals strong evidence for stationarity of the inflation rate
 for panels consisting of countries which were declared nonstationary by
 univariate tests. 
Journal: Applied Economics 
Pages: 1661-1670 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721596 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721596 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1661-1670




Template-Type: ReDIF-Article 1.0
Author-Name: P. S. Sephton 
Author-X-Name-First: P. S. 
Author-X-Name-Last: Sephton 
Title: On the empirical size of Nielsen's multivariate likelihood ratio test of fractional integration 
Abstract:
  Nielsen (2004) provides multivariate maximum likelihood procedures to
 test whether several series are fractionally integrated. This note
 examines the finite sample size of the likelihood ratio tests applied to a
 bivariate system experiencing breaks in means. The results suggest that
 tests of a common unit root are somewhat undersized in small samples. 
Journal: Applied Economics 
Pages: 1671-1679 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721638 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721638 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1671-1679




Template-Type: ReDIF-Article 1.0
Author-Name: Sarath Divisekera 
Author-X-Name-First: Sarath 
Author-X-Name-Last: Divisekera 
Author-Name: Jim Deegan 
Author-X-Name-First: Jim 
Author-X-Name-Last: Deegan 
Title: An analysis of consumption behaviour of foreign tourists in Ireland 
Abstract:
  The objective of this article is to analyse the consumption behaviour of
 foreign tourists in Ireland. Based on the Almost Ideal Demand System, five
 demand systems are estimated, four representing the major source markets
 of tourists to Ireland, namely from Britain, North America, Mainland
 Europe and Rest of the World; and one aggregate model based on a pooled
 sample. Each system included six commodity aggregates representing the
 major consumables of tourists. Estimated models were statistically
 significant and the derived elasticities are theoretically consistent and
 empirically plausible. While there are some variations in the consumption
 patterns of tourists from different source markets, reflecting differences
 in consumer preferences and consumption habits, in general, tourist demand
 for the various Irish tourism goods and services is found to be price
 inelastic. This finding is consistent with a priori expectations, as
 tourists are obliged to consume whatever is available at the destination
 they visit. The lack of substitutes and perfect information on product
 markets offer limited consumption opportunities for the tourists.
 Nonetheless, the cross-price elasticity values for all commodities across
 the source markets indicate gross complementarity, which suggests that
 latent price sensitivity exists in the background. This is an area that
 needs further investigation and this finding may have significant, yet
 unknown, consequences for repeat visitation. 
Journal: Applied Economics 
Pages: 1681-1697 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721646 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1681-1697




Template-Type: ReDIF-Article 1.0
Author-Name: Hatice Pehlivan Jenk&#x131;ns 
Author-X-Name-First: Hatice Pehlivan 
Author-X-Name-Last: Jenk&#x131;ns 
Author-Name: Salih Turan Kat&#x131;rc&#x131;oglu 
Author-X-Name-First: Salih Turan 
Author-X-Name-Last: Kat&#x131;rc&#x131;oglu 
Title: The bounds test approach for cointegration and causality between financial development, international trade and economic growth: the case of Cyprus 
Abstract:
  This study employs the bounds test for co-integration and Granger
 causality tests to investigate the long-run equilibrium relationship and
 the direction of causality between financial development, international
 trade and real income growth for the Cyprus economy. The results of the
 study reveal that financial development as measured by broad money (M2),
 international trade and real income growth are cointegrated; thus, a
 long-run equilibrium relationship can be inferred among these three
 variables. On the other hand, Granger causality test results suggest that
 in Cyprus the growth in real income stimulates the growth of international
 trade (both exports and imports) and the growth of money supply.
 Furthermore, growth in imports of goods and services also stimulates a
 growth in exports of goods and services of Cyprus. Although this result
 contradicts our initial expectations, it indicates the importance of
 capital inflows in Cyprus that plays a major role in financing the
 investments mainly in the tourism sector. As a final point, the results of
 this study reveal that the supply-leading, export-led growth and
 import-led growth hypotheses are not confirmed by this study whereas the
 demand-following hypothesis can be justified for the Cypriot economy when
 M2 measure of money supply is under consideration. 
Journal: Applied Economics 
Pages: 1699-1707 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721661 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721661 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1699-1707




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Saona 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Saona 
Author-Name: Eleuterio Vallelado 
Author-X-Name-First: Eleuterio 
Author-X-Name-Last: Vallelado 
Title: Is the use of bank debt as a governance mechanism conditioned by the financial system? The cases of Chile and Spain 
Abstract:
  We test whether the use of bank debt as a governance mechanism is
 conditioned by the financial system in which firms operate. Our results
 indicate that the legal and institutional environment determines the use
 of bank debt to finance growth opportunities. Firms use bank debt to
 finance their growth opportunities when the country's banking system
 contributes to solving agency and asymmetric information problems and
 avoiding information monopoly costs. The evolutionary process of the
 financial systems in each country means that market imperfections such as
 information asymmetry or agency costs can have a diverse influence on
 firms' bank debt decisions. 
Journal: Applied Economics 
Pages: 1709-1726 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736065 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736065 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1709-1726




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Jose Veiga 
Author-X-Name-First: Francisco Jose 
Author-X-Name-Last: Veiga 
Author-Name: Linda Goncalves Veiga 
Author-X-Name-First: Linda Goncalves 
Author-X-Name-Last: Veiga 
Title: The impact of local and national economic conditions on legislative election results 
Abstract:
  Using data for 278 Portuguese mainland municipalities, we estimate the
 impact of national and local economic conditions on legislative electoral
 outcomes over the period from the reestablishment of democracy in 1974 to
 the present. Empirical results indicate that the performance of the
 national economy is important but that the municipal situation also
 conditions electoral outcomes. 
Journal: Applied Economics 
Pages: 1727-1734 
Issue: 13 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736107 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736107 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1727-1734




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Agee 
Author-X-Name-First: Mark 
Author-X-Name-Last: Agee 
Author-Name: Thomas Crocker 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Crocker 
Title: Directional heterogeneity of environmental disamenities: the impact of crematory operations on adjacent residential values 
Abstract:
  A hedonic study of residential house sales in Rawlins, Wyoming, was
 conducted to estimate the impact of an environmental shock from a new
 point source upon adjacent residential property values. We use a unique
 data base of house sale prices and associated house attributes, including
 structural and neighbourhood characteristics and geographic distances and
 directions from the source of the shock, atmospheric emissions from a new
 crematory. Our data spans 27 months of house sales: 7 months before, and
 20 months after the startup of crematory operations. Results indicate that
 proximity, measured both in terms of direction and distance from the
 crematory, imparts a statistically significant negative impact on average
 house sale prices-an increase of 0.3 to 3.6% of average sale price for
 every one-tenth mile increase up to one-half mile in distance away from
 the crematory, but depending on direction from the crematory. This
 distance benefit increases somewhat with calendar time only for houses
 located west of the crematory. 
Journal: Applied Economics 
Pages: 1735-1745 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721679 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1735-1745




Template-Type: ReDIF-Article 1.0
Author-Name: Wim Vijverberg 
Author-X-Name-First: Wim 
Author-X-Name-Last: Vijverberg 
Author-Name: Joop Hartog 
Author-X-Name-First: Joop 
Author-X-Name-Last: Hartog 
Title: On the distribution of job characteristics: an analysis of the DOT data 
Abstract:
  We analyse the information in the Dictionary of Occupational Titles to
 characterize the structure of labour demand. Two dimensions, an
 intellectual factor and a dexterity factor, capture two-thirds of the
 variance in job requirements; the remaining (co-)variance cannot be easily
 structured. Simple linear relationships go a long way in describing the
 matching between job activities and required worker qualities (Intellect
 for complex relations to Data and to People, Dexterity for complex
 relations to Things). There is no dichotomy between mathematical and
 verbal required skills. Poor working conditions are not restricted to
 workers in low-level jobs; we find strong support for compensating wage
 differentials. At more intellectual jobs, men receive less wage
 compensation for working conditions, while in jobs requiring greater
 dexterity they receive more. Such a relationship is absent for women. 
Journal: Applied Economics 
Pages: 1747-1760 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736115 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736115 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1747-1760




Template-Type: ReDIF-Article 1.0
Author-Name: Caitlin Knowles Myers 
Author-X-Name-First: Caitlin Knowles 
Author-X-Name-Last: Myers 
Author-Name: Marcus Bellows 
Author-X-Name-First: Marcus 
Author-X-Name-Last: Bellows 
Author-Name: Hiba Fakhoury 
Author-X-Name-First: Hiba 
Author-X-Name-Last: Fakhoury 
Author-Name: Douglas Hale 
Author-X-Name-First: Douglas 
Author-X-Name-Last: Hale 
Author-Name: Alexander Hall 
Author-X-Name-First: Alexander 
Author-X-Name-Last: Hall 
Author-Name: Kaitlin Ofman 
Author-X-Name-First: Kaitlin 
Author-X-Name-Last: Ofman 
Title: Ladies first? A field study of discrimination in coffee shops 
Abstract:
  Despite anecdotal and survey evidence suggesting the presence of
 discrimination against customers in stores, restaurants and other
 small-transaction consumer markets, few studies exist that identify or
 quantify the nature of any unequal treatment. We provide evidence from a
 field study of wait times in Boston-area coffee shops that suggests that
 female customers wait an average of 20 seconds longer for their orders
 than do male customers even when controlling for gender differences in
 orders. We find that this differential in wait times is inverse to the
 proportion of employees who are female and directly related to how busy
 the coffee shop is at the time of the order. This supports the conclusion
 that the observed differential is driven at least in part by employee
 animus and/or statistical discrimination rather than unobserved
 heterogeneity in the purchasing behaviour of female customers. 
Journal: Applied Economics 
Pages: 1761-1769 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701721687 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721687 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1761-1769




Template-Type: ReDIF-Article 1.0
Author-Name: Onsurang Pipatchaipoom 
Author-X-Name-First: Onsurang 
Author-X-Name-Last: Pipatchaipoom 
Author-Name: Stefan Norrbin 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Norrbin 
Title: Is the real interest rate parity condition affected by the method of calculating real interest rates? 
Abstract:
  Although the real interest rate parity (RIRP) hypothesis has been
 extensively tested, there are no conclusive findings. We argue that the
 mixed findings are a result of the different methods used to calculate the
 real interest rate. In this article, we examine whether the RIRP holds for
 four OECD countries using five different methods for computing the real
 interest rate. The results indicate that the connection between real
 interest rates tends to be sensitive to the computational method of the
 real interest rate. Thus, authors have to be careful when comparing
 results across existing studies, since the type of computational method
 might be responsible for differences in conclusions of the validity of the
 RIRP. 
Journal: Applied Economics 
Pages: 1771-1782 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736073 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1771-1782




Template-Type: ReDIF-Article 1.0
Author-Name: Jef Vuchelen 
Author-X-Name-First: Jef 
Author-X-Name-Last: Vuchelen 
Author-Name: Stijn Caekelbergh 
Author-X-Name-First: Stijn 
Author-X-Name-Last: Caekelbergh 
Title: Explaining public investment in Western Europe 
Abstract:
  Budgetary consolidations are considered the obvious explanation for the
 decline in public investment that most Western European countries
 experienced over the past three decades. However, regressions based on
 budgetary variables tend to overpredict public investment during the
 post-1990 period, i.e. when the budgetary stress eased. We supplement the
 budgetary consolidation approach to public investment with ideas from
 behavioural economics to explain why these investments do not increase
 when additional budgetary resources are available. We use the peak/end
 evaluation procedure to capture the frustration of voters as cuts in
 government consumption expenditures accumulate. This 'memory-effect' of
 budgetary consolidations implies that voters recall the previous peak in
 government consumption expenditures. They remain discontent as long as
 current expenditures are below the peak value. When the budgetary
 situation improves, policy makers will choose to increase government
 consumption because this is electorally more rewarding. Public investment
 will thus decline when budgetary consolidations are imposed and will
 remain constant when additional budgetary resources emerge. We test for a
 memory-effect by introducing expenditure gaps in public investment
 regressions. These gaps equal the difference between the highest
 previously observed primary government consumption to Gross Domestic
 Product (GDP) ratio and the current ratio. The regression results for most
 EU countries support our assumption. 
Journal: Applied Economics 
Pages: 1783-1796 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736180 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736180 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1783-1796




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Dimitrios Drakos 
Author-X-Name-First: Konstantinos Dimitrios 
Author-X-Name-Last: Drakos 
Author-Name: Eleftherios Goulas 
Author-X-Name-First: Eleftherios 
Author-X-Name-Last: Goulas 
Title: Investment in Greek manufacturing under irreversibility and uncertainty: the message in used capital expenditures 
Abstract:
  This article contributes to the existing literature by showing that
 uncertainty produces a nonuniform impact to the extent that different
 types of capital goods exhibit heterogeneous irreversibility, which we
 define as asset-specific irreversibility. Hence, asset-specific
 irreversibility is responsible for asymmetries in responses across types
 of capital goods to uncertainty. We also show that for a given type of
 capital good, uncertainty produces a variety of responses across sectors,
 which we define sector-specific irreversibility. In other words, sectoral
 differences in terms of the ability to substitute a given type of capital
 with labour, introduce a second-order effect of uncertainty on investment. 
Journal: Applied Economics 
Pages: 1797-1809 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736040 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736040 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1797-1809




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Tse-Shih Wang 
Author-X-Name-First: Alan Tse-Shih 
Author-X-Name-Last: Wang 
Author-Name: Ming-Yuan Leon Li 
Author-X-Name-First: Ming-Yuan Leon 
Author-X-Name-Last: Li 
Author-Name: Ti-Chen Chen 
Author-X-Name-First: Ti-Chen 
Author-X-Name-Last: Chen 
Title: Price transmission, foreign exchange rate risks and global diversification of ADRs 
Abstract:
  The purposes of this article are to reinvestigate how returns of major
 American depository receipts (ADRs) from different countries are related
 to the underlying stock returns and to identify the determinants of ADR
 risk premiums. We use different types of error-correcting terms in vector
 error correction models to examine information flows between ADRs and the
 underlying foreign stocks. General method of moments estimation of
 conditional international asset pricing model of Dumas and Solnik (1995)
 is applied to investigate ADR return premiums. We find that stock returns
 are more affected by disequilibrium between ADR and stock prices in an
 inefficient way. For US investors, foreign exchange rate risk premiums and
 world market risk premium (beyond US index) are priced in ADRs returns ex
 ante. Surprisingly, it is shown that the exchange rate of New Taiwan
 dollar and the interest rates of Brazil and Taiwan play important roles in
 determining ADR risk premiums across countries. 
Journal: Applied Economics 
Pages: 1811-1823 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736057 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736057 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1811-1823




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Ki Min 
Author-X-Name-First: Chung-Ki 
Author-X-Name-Last: Min 
Title: Estimation of SEs for heteroscedastic and cross-sectionally correlated data 
Abstract:
  This study develops SE estimators for heteroscedastic and
 cross-sectionally correlated data. The new estimators are a
 cross-sectional version of the White and Domowitz (1984) and Newey and
 West (1987) estimators, and therefore, consistent in the presence of
 heteroscedasticity and cross correlation of unknown form. Unlike the
 estimators in the literature, these estimators can control for cross
 correlation even for single-period cross-sectional data. 
Journal: Applied Economics 
Pages: 1825-1832 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736172 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736172 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1825-1832




Template-Type: ReDIF-Article 1.0
Author-Name: Jay Squalli 
Author-X-Name-First: Jay 
Author-X-Name-Last: Squalli 
Author-Name: Kenneth Wilson 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Wilson 
Author-Name: Sarah Hugo 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Hugo 
Title: An analysis of market access 
Abstract:
  Market access matters. This article creates, for the first time, a
 quantitative measure of market access, the Market Access Index, which
 enables the creation of a rank order, or league table, of market access
 for a large sample of world economies. The article uses Structural
 Equation Modelling and a data set from the World Economic Forum and
 provides a broader framework for the analysis of market access arguing
 that market access is driven by the regulatory environment, public
 institutions and network industries. The article finds that network
 industries are the most important contributors to market access, followed
 by public institutions. The regulatory environment, covering trade policy
 is the least important contributor. These findings have important
 implications for the role of trade policy in influencing greater market
 access. 
Journal: Applied Economics 
Pages: 1833-1844 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736198 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736198 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1833-1844




Template-Type: ReDIF-Article 1.0
Author-Name: Roger White 
Author-X-Name-First: Roger 
Author-X-Name-Last: White 
Title: Long-run wage and earnings losses of displaced workers 
Abstract:
  Displacement-related losses are estimated using National Longitudinal
 Survey of Youth data that span the years 1979-2000. The typical displaced
 worker faces losses of $34 065 during the period 4 years prior through 5
 years following displacement. Proportionally, this represents a 10.8% loss
 compared to earnings of similar nondisplaced workers over the period.
 Considerable variation in losses is reported across worker types. Union,
 male and more mature workers suffer greater losses, respectively, than do
 their nonunion, female and younger counterparts. College graduates and
 high school dropouts are found to suffer lower losses compared to high
 school diploma holders and those who completed some college. 
Journal: Applied Economics 
Pages: 1845-1856 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736206 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736206 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1845-1856




Template-Type: ReDIF-Article 1.0
Author-Name: Atsushi Fukumi 
Author-X-Name-First: Atsushi 
Author-X-Name-Last: Fukumi 
Author-Name: Shoji Nishijima 
Author-X-Name-First: Shoji 
Author-X-Name-Last: Nishijima 
Title: Institutional quality and foreign direct investment in Latin America and the Caribbean 
Abstract:
  The purpose of this article is to investigate the interaction between
 Foreign Direct Investment (FDI) and institutional quality through a panel
 analysis of 19 countries in Latin America and the Caribbean. We employed a
 simultaneous equation approach to avoid endogeneity biases and found that
 FDI could improve the quality of institutions, while better institutions
 attract more FDI into the region. As a policy implication, our regression
 results indicate that during the process of reform, the relation between
 FDI and institutional quality warrants a certain amount of attention. 
Journal: Applied Economics 
Pages: 1857-1864 
Issue: 14 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701748979 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701748979 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1857-1864




Template-Type: ReDIF-Article 1.0
Author-Name: Davide Furceri 
Author-X-Name-First: Davide 
Author-X-Name-Last: Furceri 
Title: Long-run growth and volatility: which source really matters? 
Abstract:
  The aim of the article is to analyse the relationship between long-run
 growth and business cycle volatility. In particular, the main purpose of
 this article is to identify which source of volatility is most detrimental
 to growth. Using cross-country data from 1970 to 2000, and several
 indicators of volatility (such as inflation, exchange rate, government
 expenditure, output and investment volatility) this article shows that
 although, all these measures of volatility are remarkably harmful for
 growth, business cycle investment volatility is the main source that
 hampers long-run growth. This relation is robust to different measures of
 business cycle, and to different sub-samples of countries. 
Journal: Applied Economics 
Pages: 1865-1874 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701749050 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749050 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1865-1874




Template-Type: ReDIF-Article 1.0
Author-Name: Volodymyr Bilotkach 
Author-X-Name-First: Volodymyr 
Author-X-Name-Last: Bilotkach 
Title: Quality coordination and complementary products 
Abstract:
  This article models the choice of price and quality, where products are
 complementary; and components can be provided by either one or two
 monopolists. The firms have to choose price and quality simultaneously,
 but can coordinate in the latter dimension. We consider two specifications
 for the quality of the composite good: 'bottleneck' and additive set-ups.
 In both cases, a single monopolist may produce lower quality as compared
 to dual ownership, if the latter is modelled as a single-stage
 quality-and-price setting game. When separate markets for components of
 the composite good are added to the model, we provide an example where
 dual ownership leading to higher quality also yields higher consumer
 surplus (but not total welfare) than a single monopolist. 
Journal: Applied Economics 
Pages: 1875-1888 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701749043 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1875-1888




Template-Type: ReDIF-Article 1.0
Author-Name: Brian Whitacre 
Author-X-Name-First: Brian 
Author-X-Name-Last: Whitacre 
Author-Name: Bradford Mills 
Author-X-Name-First: Bradford 
Author-X-Name-Last: Mills 
Title: A need for speed? Rural Internet connectivity and the no access/dial-up/high-speed decision 
Abstract:
  As residential high-speed Internet access has become more prevalent, the
 nature of the rural-urban digital divide in access has shifted. In 2000,
 dial-up access rates in rural households lagged behind their urban
 counterparts by 11 percentage points. By 2003, however, dial-up access
 rates were equal in rural and urban areas, but high-speed access rates
 were 14 percentage points higher in urban areas. This article uses a
 nested logit model to explore the household decision between no Internet
 access, dial-up access and high-speed access. A decomposition technique is
 then used to estimate the contributions of various factors, including
 education, income and infrastructure levels, to differences in Internet
 access among rural and urban households. The results suggest that policies
 which solely promote infrastructure in rural areas fail to address the
 dominant factors in the emerging high-speed digital divide. 
Journal: Applied Economics 
Pages: 1889-1905 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701749001 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1889-1905




Template-Type: ReDIF-Article 1.0
Author-Name: Sovannroeun Samreth 
Author-X-Name-First: Sovannroeun 
Author-X-Name-Last: Samreth 
Title: Currency substitution and seigniorage-maximizing inflation: the case of Cambodia 
Abstract:
  This article contributes a new empirical study on currency substitution
 in Cambodia. In our analysis, a model of money-in-the-utility function is
 adopted. The empirical results indicate that the elasticity of
 substitution between foreign and domestic real currency balances in
 Cambodia is high. Moreover, the high share of foreign real balances in
 providing domestic liquidity services in Cambodia is also confirmed by
 empirical analysis. Given these findings, the effects of the currency
 substitution on the government ability to gain from seigniorage revenue
 are also examined. The analysis from simulated results shows that the
 Cambodian government has little opportunity to gain from seigniorage
 revenue. 
Journal: Applied Economics 
Pages: 1907-1916 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701749035 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749035 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1907-1916




Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim 
Author-X-Name-First: Sangho 
Author-X-Name-Last: Kim 
Author-Name: Rainer Klump 
Author-X-Name-First: Rainer 
Author-X-Name-Last: Klump 
Title: The effects of public pensions on private wealth: evidence on the German savings puzzle 
Abstract:
  Based on German panel data between 1984 and 1999, we test for the
 interaction of social security benefits and private wealth formation. In a
 simple life-cylce model benefits from public pension systems should
 displace equal amounts of private retirement accumulation. Our estimate
 for the offset effect, corrected for several possible measurement biases,
 is much lower, however, than expected from pure life-cycle considerations
 and less than comparable estimates for the US and the UK. This result thus
 supports other evidence on a particular German savings puzzle, which might
 be due to market imperfections and/or bounded rational behaviour. 
Journal: Applied Economics 
Pages: 1917-1926 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701749027 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749027 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1917-1926




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolin Xing 
Author-X-Name-First: Xiaolin 
Author-X-Name-Last: Xing 
Title: Can price dispersion be persistent in the Internet markets? 
Abstract:
  We investigate pricing behaviour and market dynamics for both online
 branches of Multi-Channel Retailers (MCRs) and online-only retailers
 (Dotcoms), based on a set of panel data collected for 2 years in the
 online DVD market. We find that prices of MCRs and Dotcoms both go down
 with time, but prices of MCRs decrease in a significantly faster speed,
 implying that difference in the average prices between the two types of
 retailers is getting smaller with time. We also compare the price
 dispersion and its dynamics between MCRs and Dotcoms. We find that the
 price dispersion among MCRs is much bigger than that among Dotcoms at the
 beginning. But such a difference gets smaller with time as the price
 dispersion among Dotcoms becomes bigger. Our results suggest that the two
 types of retailers will not only charge similar average prices in long
 term, but also have similar price dispersions. But our findings show that
 price dispersion among all retailers goes up with time, indicating that
 prices do not converge in the Internet market. Branding makes significant
 difference on both the price and the price dispersion. 
Journal: Applied Economics 
Pages: 1927-1940 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701748987 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701748987 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1927-1940




Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Czarnitzki 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Czarnitzki 
Author-Name: Kornelius Kraft 
Author-X-Name-First: Kornelius 
Author-X-Name-Last: Kraft 
Title: On the profitability of innovative assets 
Abstract:
  Successful innovative activity is a major contribution to the intangible
 capital of firms. Although its importance is generally acknowledged, the
 contribution to companies' profits is a priori unclear. We present the
 results of an empirical study on the effects of the patent stock on
 profitability. The database is a representative sample of German
 manufacturing firms and we use a number of control variables including
 measures of competition and firm governance. It turns out that the patent
 stock has a strong and robust effect on profitability. 
Journal: Applied Economics 
Pages: 1941-1953 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701749019 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749019 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1941-1953




Template-Type: ReDIF-Article 1.0
Author-Name: Axel Dreher 
Author-X-Name-First: Axel 
Author-X-Name-Last: Dreher 
Author-Name: Tim Krieger 
Author-X-Name-First: Tim 
Author-X-Name-Last: Krieger 
Title: Diesel price convergence and mineral oil taxation in Europe 
Abstract:
  We empirically analyse convergence of European producer and consumer
 prices for diesel fuel and investigate the role of excise taxation. By
 comparing the speed of convergence of prices and taxes we find a
 surprisingly fast speed of convergence for consumer prices. While this can
 in part be explained by fuel tourism, the main driving force is producer
 price dynamics. Tax convergence contributes weakly to price convergence,
 but the overall effect is to slow down consumer relative to producer price
 convergence. 
Journal: Applied Economics 
Pages: 1955-1961 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701749076 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1955-1961




Template-Type: ReDIF-Article 1.0
Author-Name: Rumi Masih 
Author-X-Name-First: Rumi 
Author-X-Name-Last: Masih 
Author-Name: A. Mansur M. Masih 
Author-X-Name-First: A. Mansur M. 
Author-X-Name-Last: Masih 
Author-Name: Kilian Mie 
Author-X-Name-First: Kilian 
Author-X-Name-Last: Mie 
Title: Model uncertainty and asset return predictability: an application of Bayesian model averaging 
Abstract:
  We investigate model uncertainty associated with predictive regressions
 employed in asset return forecasting research. We use simple combination
 and Bayesian model averaging (BMA) techniques to compare the performance
 of these forecasting approaches in short-vs. long-run horizons of S&P500
 monthly excess returns. Simple averaging involves an equally-weighted
 averaging of the forecasts from alternative combinations of factors used
 in the predictive regressions, whereas BMA involves computing the
 predictive probability that each model is the true model and uses these
 predictive probabilities as weights in combing the forecasts from
 different models. From a given set of multiple factors, we evaluate all
 possible pricing models to the extent, which they describe the data as
 dictated by the posterior model probabilities. We find that, while simple
 averaging compares quite favorably to forecasts derived from a random walk
 model with drift (using a 10-year out-of-sample iterative period), BMA
 outperforms simple averaging in longer compared to shorter forecast
 horizons. Moreover, we find further evidence of the latter when the
 predictive Bayesian model includes shorter, rather than longer lags of the
 predictive factors. An interesting outcome of this study tends to
 illustrate the power of BMA in suppressing model uncertainty through model
 as well as parameter shrinkage, especially when applied to longer
 predictive horizons. 
Journal: Applied Economics 
Pages: 1963-1972 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701736214 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736214 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1963-1972




Template-Type: ReDIF-Article 1.0
Author-Name: Kam Yu 
Author-X-Name-First: Kam 
Author-X-Name-Last: Yu 
Author-Name: Marc Prud'homme 
Author-X-Name-First: Marc 
Author-X-Name-Last: Prud'homme 
Title: Econometric issues in hedonic price indices: the case of internet service providers 
Abstract:
  Researchers in hedonic studies frequently encounter the problems of the
 choice of functional forms, the use of pooled regression using time
 dummies vs period to period regression, and the unit of measurement of the
 product. This article examines these issues through the study of Internet
 service providers in Canada from 1993 to 2000. A series of tests are
 employed to evaluate the best procedure. We find that the commonly used
 log-linear equation with period to period regression and hourly rate
 charged gives a robust result compared with the more flexible translog
 function. The quality-adjusted price index declines at about 15% per year. 
Journal: Applied Economics 
Pages: 1973-1994 
Issue: 15 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701748995 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701748995 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1973-1994




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Gerry 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Gerry 
Author-Name: Carmen Li 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Li 
Title: Consumption smoothing and vulnerability in Russia 
Abstract:
  Applying bootstrapped quantile regression to the Russian Longitudinal
 Monitoring Survey (RLMS) data, we examine the channels through which
 individuals experience and seek to cope with changes in consumption. We
 find that married individuals living in small households, with educated
 heads in urban areas are better equipped to smooth consumption.
 Investigating the impact of idiosyncratic shocks, we find that the labour
 market is an important transmission mechanism allowing households to
 smooth their consumption but also exposing them to risk, mainly through
 job loss. Outside of pension payments, the formal social safety net does
 not facilitate consumption smoothing, thus heightening the importance of
 informal coping institutions. It transpires that both support from
 relatives/friends and home production act as important insurance
 mechanisms for the most vulnerable. In contrast with previous findings, it
 would seem that regardless of its historical, political and social roots,
 the garden plots and dachas, often romanticized in Russian literature, do
 provide a means by which 'urban' Russians are able to cope with economic
 fluctuations. We finish by stressing the important policy lessons for
 Russia's developing market economy. 
Journal: Applied Economics 
Pages: 1995-2007 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765403 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765403 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:1995-2007




Template-Type: ReDIF-Article 1.0
Author-Name: Yasser Abdih 
Author-X-Name-First: Yasser 
Author-X-Name-Last: Abdih 
Author-Name: Charalambos Tsangarides 
Author-X-Name-First: Charalambos 
Author-X-Name-Last: Tsangarides 
Title: FEER for the CFA franc 
Abstract:
  We investigate the behaviour of the real effective exchange rates (REER)
 of the two CFA franc zone monetary unions - CEMAC and WAEMU - vis-a-vis
 their long-run equilibrium paths. A reduced form of the Edwards' (1989)
 fundamentals equilibrium exchange rate (FEER) model is estimated using the
 Johansen's (1995) cointegration methodology, and equilibrium paths and
 associated misalignments are derived for the period 1970 to 2005. Our
 results suggest that, for both CEMAC and WAEMU, the fundamentals account
 for most of the exchange rates' fluctuation: increases in the
 terms-of-trade, government consumption and productivity tend to appreciate
 the exchange rate, while increases in investment and openness tend to
 depreciate it. At end of 2005, we find no evidence that either the CEMAC
 or WAEMU REERs were significantly over-valued, which suggests that no
 exchange rate action is currently needed. Our analysis also reveals
 significant differences in the fundamentals' marginal impact, and speed of
 reversion to equilibrium following a shock, which may raise questions
 about the desirability of maintaining the same parity for both monetary
 unions. 
Journal: Applied Economics 
Pages: 2009-2029 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765411 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765411 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2009-2029




Template-Type: ReDIF-Article 1.0
Author-Name: Seong-Hoon Cho 
Author-X-Name-First: Seong-Hoon 
Author-X-Name-Last: Cho 
Author-Name: Zhuo Chen 
Author-X-Name-First: Zhuo 
Author-X-Name-Last: Chen 
Author-Name: Neelam Poudyal 
Author-X-Name-First: Neelam 
Author-X-Name-Last: Poudyal 
Title: Spatial structure of agricultural production in China 
Abstract:
  The spatial structure of county-level agricultural production in China in
 1999 is analysed. A convenient simple method that corrects for both
 spatial autocorrelation and spatial heterogeneity in the input-output
 relationships using spatial lag models and an allowance for the response
 coefficients to vary across relatively homogeneous regions are described.
 Empirical results suggest an abundant labour supply and extensive use of
 agricultural machinery reflected in its declining price. Although
 mechanization is relatively new, machines have replaced fertilizer in
 agricultural production in the North, Northeast, Northwest and East
 regions while irrigation and fertilizer are the significantly important
 inputs in the Central and Southwest regions. 
Journal: Applied Economics 
Pages: 2031-2040 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765320 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765320 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2031-2040




Template-Type: ReDIF-Article 1.0
Author-Name: Song Zan Chiou-Wei 
Author-X-Name-First: Song Zan 
Author-X-Name-Last: Chiou-Wei 
Author-Name: Zhen Zhu 
Author-X-Name-First: Zhen 
Author-X-Name-Last: Zhu 
Author-Name: Wun-Cheng Wu 
Author-X-Name-First: Wun-Cheng 
Author-X-Name-Last: Wu 
Title: Financial development and economic growth in South Korea: an application of smooth transition error correction analysis 
Abstract:
  This article investigates the influences of financial development on
 economic growth for South Korea. The analysis is performed using an error
 correction model and a nonlinear smooth transition error correction
 technique. Empirical results from the cointegration test reveal that there
 is a long-run equilibrium relationship among financial development and
 economic growth. We also demonstrate that the nonlinear specification is
 more appropriate than the linear model and confirm the presence of
 nonlinearity in the aggregate output. Furthermore, we find that the
 short-run effect of financial development on economic growth is unstable
 despite the positive long-term effect. 
Journal: Applied Economics 
Pages: 2041-2052 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765312 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765312 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2041-2052




Template-Type: ReDIF-Article 1.0
Author-Name: Mareva Sabatier 
Author-X-Name-First: Mareva 
Author-X-Name-Last: Sabatier 
Title: Do female researchers face a glass ceiling in France? A hazard model of promotions 
Abstract:
  The present article examines whether French female researchers face a
 glass ceiling, an invisible barrier to promotion. Using an original
 database from the National Institute for Agricultural Research (INRA), we
 estimate duration models for promotions. The methodology used allows us to
 take into account censored observations and unobserved heterogeneity. Our
 results show a significant gender effect that does not contradict the
 glass-ceiling hypothesis. In addition, factors that boost promotion seem
 to be radically different according to gender and we present evidence that
 promotion strategies are different for males and females. 
Journal: Applied Economics 
Pages: 2053-2062 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765338 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765338 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2053-2062




Template-Type: ReDIF-Article 1.0
Author-Name: Gerhard Kempkes 
Author-X-Name-First: Gerhard 
Author-X-Name-Last: Kempkes 
Author-Name: Carsten Pohl 
Author-X-Name-First: Carsten 
Author-X-Name-Last: Pohl 
Title: The efficiency of German universities-some evidence from nonparametric and parametric methods 
Abstract:
  Due to tight public budget constraints, the efficiency of publicly
 financed universities in Germany is receiving increasing attention in the
 academic as well as in the public discourse. Against this background, we
 analyse the efficiency of 72 public German universities for the years
 1998-2003, applying data envelopment and stochastic frontier analysis.
 Contrary to earlier studies, we account for the faculty composition of
 universities which proves to be an essential element in the efficiency of
 higher education. Our main finding is that East German universities have
 performed better in total factor productivity change compared to those in
 West Germany. However, when looking at mean efficiency scores over the
 sample period, West German universities still appear at the top end of
 relative efficiency outcomes. 
Journal: Applied Economics 
Pages: 2063-2079 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2063-2079




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Sosvilla-Rivero 
Author-X-Name-First: Simon 
Author-X-Name-Last: Sosvilla-Rivero 
Author-Name: Pedro Rodriguez 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Rodriguez 
Title: Linkages in international stock markets: evidence from a classification procedure 
Abstract:
  In this article, we propose a new approach to evaluate the predictable
 components in stock indices using a boosting-based classification
 technique, and we use this method to examine causality among the three
 main stock market indices in the world during periods of large positive
 and negative price changes. The empirical evidence seems to indicate that
 the Standard & Poors 500 index contains incremental information that is
 not present in either the FTSE 100 index (Financial Times Stock Exchange
 Index) or the Nikkei 225 index, and that could be used to enhance the
 predictability of the large positive and negative returns in the three
 main stock market indices in the world. This in turn would suggest a
 causality relationship running from the Standard & Poors 500 index to both
 the FTSE 100 and the Nikkei 225 indices. 
Journal: Applied Economics 
Pages: 2081-2089 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765387 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765387 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2081-2089




Template-Type: ReDIF-Article 1.0
Author-Name: Corrado Andini 
Author-X-Name-First: Corrado 
Author-X-Name-Last: Andini 
Title: A dynamic Mincer equation with an application to Portuguese data 
Abstract:
  This article argues in favour of a dynamic specification of the Mincer
 equation, where the past observed earnings play the role of additional
 explanatory variable for current observed earnings. A dynamic approach
 offers an explanation why the return to schooling in terms of observed
 earnings is not independent of labour-market experience, as suggested by
 some recent empirical evidence for the United States. 
Journal: Applied Economics 
Pages: 2091-2098 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765429 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765429 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2091-2098




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Author-Name: Rukmini Gounder 
Author-X-Name-First: Rukmini 
Author-X-Name-Last: Gounder 
Author-Name: Josef Loening 
Author-X-Name-First: Josef 
Author-X-Name-Last: Loening 
Title: The level and growth effects in the empirics of economic growth: some results with data from Guatemala 
Abstract:
  Mankiw et al. (1992) have extended the Solow (1956) model by augmenting
 the production function with human capital. Its empirical success is
 impressive and it showed a procedure to improve the explanatory power of
 the neoclassical growth model. This article suggests an empirical
 procedure to further extend the neoclassical growth model to distinguish
 between the growth and level effects of shift variables like the human
 capital. We use time-series data from Guatemala to show that while the
 growth effects of education are small, they are significant and dominate
 the level effects. 
Journal: Applied Economics 
Pages: 2099-2109 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701749068 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749068 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2099-2109




Template-Type: ReDIF-Article 1.0
Author-Name: Hsinan Hsu 
Author-X-Name-First: Hsinan 
Author-X-Name-Last: Hsu 
Author-Name: Hsing-Chi Wu 
Author-X-Name-First: Hsing-Chi 
Author-X-Name-Last: Wu 
Author-Name: Hsien-Yi Lee 
Author-X-Name-First: Hsien-Yi 
Author-X-Name-Last: Lee 
Author-Name: Janchung Wang 
Author-X-Name-First: Janchung 
Author-X-Name-Last: Wang 
Title: A measurement of the extent of market imperfections between markets and applications 
Abstract:
  Traditionally, market imperfections are measured separately. In dealing
 with the impacts of market imperfections on a financial theory, financial
 researchers often modify the theory by incorporating one type of market
 imperfections into the theory, one by one, and then derive a new modified
 formula. The major problem with this approach is that when considering a
 type of market imperfections, the new modified formula still ignores the
 effects of other types of market imperfections. Another problem is that
 the modified formula is often tedious. Following the concept of degree of
 market imperfection in Hsu and Wang (2004), this article aims to derive a
 more easy measurement of market imperfections between markets, discuss
 some useful applications and provide one of empirical tests. The degree of
 market imperfection between markets can be applied at least to the
 following areas: (1) theoretical model building for pricing derivatives in
 imperfect markets, (2) predicting the deviations of the actual derivative
 prices from their theoretical prices based on the model of perfect market
 assumptions and (3) showing the extent of arbitrage activities between
 markets. 
Journal: Applied Economics 
Pages: 2111-2126 
Issue: 16 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2111-2126




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: The asymmetric effects of demand shocks: international evidence on determinants and implications 
Abstract:
  The analysis focuses on the asymmetric effects of demand shocks. The
 evidence across a sample of 19 industrial countries differentiates the
 effects of expansionary and contractionary aggregate demand shocks on real
 output growth and nominal wage and price inflation. The difference appears
 consistent with a kinked supply curve that is dependent on the asymmetric
 flexibility of wages and/or prices across countries. Furthermore, the
 evidence does not support the endogeneity of asymmetric nominal
 flexibility with respect to demand variability or trend price inflation
 across countries. On average, across countries, demand variability
 increases nominal wage and price inflation relative to deflation, while
 exacerbating output contraction relative to expansion. The apparent
 trade-off between changes in real and nominal trends provides further
 support to the supply side explanation of asymmetry. 
Journal: Applied Economics 
Pages: 2127-2145 
Issue: 17 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765502 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765502 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2127-2145




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Afonso 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Afonso 
Author-Name: Ludger Schuknecht 
Author-X-Name-First: Ludger 
Author-X-Name-Last: Schuknecht 
Author-Name: Vito Tanzi 
Author-X-Name-First: Vito 
Author-X-Name-Last: Tanzi 
Title: Public sector efficiency: evidence for new EU member states and emerging markets 
Abstract:
  In this article, we analyse public sector efficiency in the new member
 states of the EU compared to that in emerging markets. After a conceptual
 discussion of expenditure efficiency measurement, we compute efficiency
 scores and rankings by applying a range of measurement techniques. The
 study finds that expenditure efficiency across new EU member states is
 rather diverse especially as compared to the group of top performing
 emerging markets in Asia. Econometric analysis shows that higher income,
 civil service competence and education levels as well as the security of
 property rights seem to facilitate the prevention of inefficiencies in the
 public sector. 
Journal: Applied Economics 
Pages: 2147-2164 
Issue: 17 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765460 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765460 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2147-2164




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Boeters 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Boeters 
Author-Name: Christoph Bohringer 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Bohringer 
Author-Name: Thiess Buttner 
Author-X-Name-First: Thiess 
Author-X-Name-Last: Buttner 
Author-Name: Margit Kraus 
Author-X-Name-First: Margit 
Author-X-Name-Last: Kraus 
Title: Economic effects of VAT reforms in Germany 
Abstract:
  In the tax policy debate, differentiation of value-added taxes (VAT) is
 often justified by distributional concerns. Our quantitative analysis for
 Germany indicates that such concerns are misplaced. We find that the
 abolition of VAT differentiation has only negligible redistributive
 effects. Instead, reduced VAT rates are found to act as industry-specific
 subsidies. Whereas the overall welfare effects of pure VAT reforms are
 very small, a revenue-neutral introduction of a harmonized VAT combined
 with reductions in the marginal income tax rates or social security
 contributions turns out to yield substantial welfare gains for all
 households. 
Journal: Applied Economics 
Pages: 2165-2182 
Issue: 17 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701857952 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857952 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2165-2182




Template-Type: ReDIF-Article 1.0
Author-Name: Peter van der Zwan 
Author-X-Name-First: Peter 
Author-X-Name-Last: van der Zwan 
Author-Name: Roy Thurik 
Author-X-Name-First: Roy 
Author-X-Name-Last: Thurik 
Author-Name: Isabel Grilo 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Grilo 
Title: The entrepreneurial ladder and its determinants 
Abstract:
  We test a new model where the entrepreneurial decision is described as a
 process of successive engagement levels, i.e. as an entrepreneurial
 ladder. Five levels are distinguished using nearly 12 000 observations
 from the 2004 'Flash Eurobarometer survey on Entrepreneurship' covering
 the 25 European Union member states and the United States. The most
 surprising of the many results is that perception of lack of financial
 support is no obstacle for moving to a higher entrepreneurial engagement
 level whereas perceived administrative complexity is a significant
 obstacle. We also show that the effect of age on the probability of moving
 forward in the entrepreneurial process becomes negative after a certain
 age implying that if entrepreneurial engagements are not taken early
 enough in life they may well never be taken. 
Journal: Applied Economics 
Pages: 2183-2191 
Issue: 17 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765437 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765437 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2183-2191




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Title: Deterministic and stochastic trends in the time series models: a guide for the applied economist 
Abstract:
  Applied economists working with time series data face a dilemma in
 selecting between models with deterministic and stochastic trends. While
 models with deterministic trends are widely used, models with stochastic
 trends are not so well known. In an influential paper Harvey (1997)
 strongly advocates a structural time series approach with stochastic
 trends in place of the widely used autoregressive models based on unit
 root tests and cointegration techniques. Therefore, it is important to
 understand their relative merits. This article suggests that both
 methodologies are useful and they may perform differently in different
 models. This article provides a few guidelines to the applied economists
 to understand these alternative methods. 
Journal: Applied Economics 
Pages: 2193-2202 
Issue: 17 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765494 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765494 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2193-2202




Template-Type: ReDIF-Article 1.0
Author-Name: Maria De Paola 
Author-X-Name-First: Maria 
Author-X-Name-Last: De Paola 
Author-Name: Vincenzo Scoppa 
Author-X-Name-First: Vincenzo 
Author-X-Name-Last: Scoppa 
Title: Peer group effects on the academic performance of Italian students 
Abstract:
  We analyse peer effects among students of a middle-sized Italian public
 university. We explain students' average grade in exams passed during
 their Second Level Degree course on the basis of their pre-determined
 measures of abilities, personal characteristics and peer group abilities.
 Thanks to a rich administrative data set, we are able to build a variety
 of definitions of peer groups, describing different kinds of students'
 interaction, based on classes attended together or exams taken in the same
 session. Self-selection problems are handled through Two-Stage Least
 Squares estimations using as an instrument, the exogenous assignment of
 students to different teaching classes in the compulsory courses attended
 during their First Level Degree course. We find statistically significant
 positive peer group effects, which are robust to the different definitions
 of peer group and to different measures of abilities. 
Journal: Applied Economics 
Pages: 2203-2215 
Issue: 17 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765478 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765478 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2203-2215




Template-Type: ReDIF-Article 1.0
Author-Name: Taewoo You 
Author-X-Name-First: Taewoo 
Author-X-Name-Last: You 
Author-Name: Xiaoying Chen 
Author-X-Name-First: Xiaoying 
Author-X-Name-Last: Chen 
Author-Name: Mark Holder 
Author-X-Name-First: Mark 
Author-X-Name-Last: Holder 
Title: Efficiency and its determinants in pharmaceutical industries: ownership, R&D and scale economy 
Abstract:
  The purpose of this article is to measure the efficiency of
 pharmaceutical firms and identify their determinants using Korean and
 American samples from 1992 to 2004. We document some stylized facts in the
 patterns and sources of efficiency change in Korean and American
 pharmaceutical firms. The evidence shows that ownership structure can
 substantially influence the efficiency of pharmaceutical firms.
 Especially, institutional ownership rate affects corporate efficiencies
 negatively, corroborating the myopic institutional investor hypothesis.
 The hypothesis is supported by both Korean and American samples. However,
 we find evidence that foreign ownership in Korea promotes efficiency of
 pharmaceutical firms. It is shown that R&D intensity is positively related
 to contemporaneous largest ownership rate and prior foreign ownership rate
 in Korean pharmaceutical firms. In contrast, little evidence is found on
 the relationship between ownership structure and R&D intensity in the
 American pharmaceutical industry. These empirical results are robust even
 after we check the causal links among efficiency, R&D and ownership. 
Journal: Applied Economics 
Pages: 2217-2241 
Issue: 17 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765445 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765445 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2217-2241




Template-Type: ReDIF-Article 1.0
Author-Name: Julian Ramajo 
Author-X-Name-First: Julian 
Author-X-Name-Last: Ramajo 
Author-Name: Montserrat Ferre 
Author-X-Name-First: Montserrat 
Author-X-Name-Last: Ferre 
Title: Purchasing power parity revisited: evidence from old and new tests for an organisation for economic co-operation and development panel 
Abstract:
  The objective of this article is to study long-run Purchasing Power
 Parity (PPP) for a panel of 21 Organisation for Economic Co-operation and
 Development (OECD) countries from the end of the Bretton Woods era by
 applying a wide range of the econometric techniques available. This will
 allow us to present a comprehensive up to date examination of the
 empirical validity of PPP, covering the weak and strong versions of the
 hypothesis with individual and panel analysis, including the absence or
 presence of cross-dependency, the linear or nonlinear behaviour of the
 real exchange rates and the degree of persistence. Overall, the results
 provide evidence in favour of PPP. 
Journal: Applied Economics 
Pages: 2243-2260 
Issue: 17 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701765486 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765486 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2243-2260




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Russo 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Russo 
Title: Is past prologue? Prospects for state and local sales tax bases 
Abstract:
  General sales taxes provide substantial fractions of state and local
 revenues in the US. However, state and local sales tax bases have been
 eroding steadily during the past 50 years. Base erosion contributes to
 fiscal stress in the states; therefore, prospects for continued sales tax
 base erosion are important to state tax administrators, policymakers and
 public finance economists. This article offers a quantitative assessment
 of base erosion. We construct time series of a representative state sales
 tax base and its price index, and estimate a structural demand system for
 'taxed' and 'untaxed' commodities. We use the estimates to forecast the
 sales tax base over coming years. Time-series forecasts and a
 weighted-average forecast are constructed, to reduce the likelihood of
 forecast error. The results suggest slow, but relentless, base erosion and
 possible recurring fiscal stress, in states where sales tax revenues make
 up sizable fractions of total tax revenues. 
Journal: Applied Economics 
Pages: 2261-2274 
Issue: 18 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858000 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858000 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2261-2274




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Musolesi 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Musolesi 
Author-Name: Massimiliano Mazzanti 
Author-X-Name-First: Massimiliano 
Author-X-Name-Last: Mazzanti 
Author-Name: Roberto Zoboli 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Zoboli 
Title: A panel data heterogeneous Bayesian estimation of environmental Kuznets curves for CO2 emissions 
Abstract:
  This article investigates the Environmental Kuznets Curves (EKC) for CO2
 emissions in a panel of 109 countries during the period 1959 to 2001. The
 length of the series makes the application of a heterogeneous estimator
 suitable from an econometric point of view. The results, based on the
 hierarchical Bayes estimator, show that different EKC dynamics are
 associated with the different sub-samples of countries considered. On
 average, more industrialized countries show evidence of EKC in quadratic
 specifications, which nevertheless are probably evolving into an N-shape
 based on their cubic specification. Nevertheless, it is worth noting that
 the EU, and not the Umbrella Group led by US, has been driving currently
 observed EKC-like shapes. The latter is associated to monotonic income-CO2
 dynamics. The EU shows a clear EKC shape. Evidence for less-developed
 countries consistently shows that CO2 emissions rise positively with
 income, though there are some signs of an EKC. Analyses of future
 performance, nevertheless, favour quadratic specifications, thus
 supporting EKC evidence for wealthier countries and non-EKC shapes for
 industrializing regions. 
Journal: Applied Economics 
Pages: 2275-2287 
Issue: 18 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858034 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858034 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2275-2287




Template-Type: ReDIF-Article 1.0
Author-Name: Tara Sinclair 
Author-X-Name-First: Tara 
Author-X-Name-Last: Sinclair 
Author-Name: H. O. Stekler 
Author-X-Name-First: H. O. 
Author-X-Name-Last: Stekler 
Author-Name: L. Kitzinger 
Author-X-Name-First: L. 
Author-X-Name-Last: Kitzinger 
Title: Directional forecasts of GDP and inflation: a joint evaluation with an application to Federal Reserve predictions 
Abstract:
  Many studies have undertaken separate analyses of the Fed's forecasts of
 real Gross Domestic Product (GDP) growth and inflation. This article
 presents a method for jointly evaluating the direction of change
 predictions of these variables. We conclude that some of the inflation
 forecasts, examined separately, were not valuable. However, the joint
 pattern of GDP and inflation projections was generally in accord with the
 economy's movements. '&#x2026; directional forecasting &#x2026; is now an
 increasingly popular metric for forecasting performance&#x2026;.' (Pesaran
 and Timmermann, 2004, 414) 
Journal: Applied Economics 
Pages: 2289-2297 
Issue: 18 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701857978 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857978 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2289-2297




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Karlson 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Karlson 
Author-Name: Eliakim Katz 
Author-X-Name-First: Eliakim 
Author-X-Name-Last: Katz 
Title: Immigration amnesties 
Abstract:
  Barriers and border patrols complement amnesty in a coherent policy that
 creates incentives for illegal immigrants to self-select on the basis of
 ability in a way that benefits a rich host country. We consider the roles
 of barriers to migration and immigration amnesties in greater depth and,
 in particular, we examine the rich country's optimal policies. Encouraging
 self-selection is optimal under some, but not all, circumstances, because
 there are mixes of potential immigrants for which the cost of welfare
 migration is more than offset by the gains from productive workers enticed
 by a more lenient immigration policy. Furthermore, under plausible
 assumptions, the rich country's optimum may require a probabilistic rather
 than a certain amnesty to fine-tune the mix of migrants. Numerical
 examples illustrate that probabilistic or certain amnesties, addressed to
 different partitions of the migrant population, are each optimal as the
 mix of potential migrants changes. 
Journal: Applied Economics 
Pages: 2299-2315 
Issue: 18 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701857986 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857986 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2299-2315




Template-Type: ReDIF-Article 1.0
Author-Name: Ashfaqul Babool 
Author-X-Name-First: Ashfaqul 
Author-X-Name-Last: Babool 
Author-Name: Michael Reed 
Author-X-Name-First: Michael 
Author-X-Name-Last: Reed 
Title: The impact of environmental policy on international competitiveness in manufacturing 
Abstract:
  The aim of this study is to test the hypothesis that environmental
 stringency adversely affects the international competitiveness (net
 exports) in manufacturing sectors. The model follows the standard factor
 endowment approach to explain the effects of environmental regulatory
 policy on net exports in different product-based industries. An
 econometric model is constructed, which includes factor endowments and
 environmental regulations to examine how strict environmental policies
 impact export competitiveness. A panel dataset of 10 Organisation for
 Economic Co-operation and Development (OECD) countries, over 17 years,
 1987-2003, was constructed for the modelling effort. The study finds that
 environmental regulations can be a way to combat the flight of
 manufacturing out of developed countries if the output from these
 industries can be identified as environmentally friendly. A positive
 relationship between net exports and environmental regulations was found
 for paper products, wood products and textile products. However, most
 manufacturing industries are harmed by increased environmental
 regulations. 
Journal: Applied Economics 
Pages: 2317-2326 
Issue: 18 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858026 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2317-2326




Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Bagliano 
Author-X-Name-First: Fabio 
Author-X-Name-Last: Bagliano 
Author-Name: Claudio Morana 
Author-X-Name-First: Claudio 
Author-X-Name-Last: Morana 
Title: Business cycle comovement in the G-7: common shocks or common transmission mechanisms? 
Abstract:
  What are the sources of macroeconomic comovement among G-7 countries? Two
 main candidate explanations may be singled out: common shocks and common
 transmission mechanisms. In the article it is shown that they are
 complementary, rather than alternative, explanations. By means of a
 large-scale Factor Vector Autoregressive (FVAR) model, allowing for full
 economic and statistical identification of all global and idiosyncratic
 shocks, it is found that both common disturbances and common transmission
 mechanisms of global and country-specific shocks account for business
 cycle comovement in the G-7 countries. Moreover, spillover effects of
 foreign idiosyncratic disturbances seem to be a less important factor than
 the common transmission of global or domestic shocks in the determination
 of international macro-economic comovements. 
Journal: Applied Economics 
Pages: 2327-2345 
Issue: 18 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858067 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858067 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2327-2345




Template-Type: ReDIF-Article 1.0
Author-Name: Myung-Hee Kim 
Author-X-Name-First: Myung-Hee 
Author-X-Name-Last: Kim 
Author-Name: Hyun-Hoon Lee 
Author-X-Name-First: Hyun-Hoon 
Author-X-Name-Last: Lee 
Title: Linguistic and nonlinguistic factors determining proficiency of English as a foreign language: a cross-country analysis 
Abstract:
  This article is one of the first studies to use econometric techniques to
 examine the factors influencing proficiency of English as a foreign
 language. Specifically, this article aims to investigate, at cross-country
 level, the linguistic and nonlinguistic factors influencing the variation
 of proficiency in the use of English as a second language. As a proxy for
 English proficiency, we use the average Test of English as a Foreign
 Language (TOEFL) scores achieved by residents of a total of over 60
 countries. The regression results suggest that linguistic factors such as
 historical affinity and similarity in word order between English and a
 given language have an influence on the proficiency in English achieved by
 people whose native language is not English. Among the nonlinguistic
 factors, expected years of schooling and degree of globalization have a
 positive relation with proficiency in English. These results seem robust,
 even when the computer-based TOEFL score is used in place of the
 paper-based TOEFL score and even when the overall score is replaced by the
 respective score in listening comprehension, structure and written
 expression, and reading comprehension. 
Journal: Applied Economics 
Pages: 2347-2364 
Issue: 18 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701857960 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857960 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2347-2364




Template-Type: ReDIF-Article 1.0
Author-Name: M. Ege Yazgan 
Author-X-Name-First: M. Ege 
Author-X-Name-Last: Yazgan 
Author-Name: Ilknur Zer-Toker 
Author-X-Name-First: Ilknur 
Author-X-Name-Last: Zer-Toker 
Title: Currency substitution, policy rule and pass-through: evidence from Turkey 
Abstract:
  In this article we analyse empirically currency substitution and exchange
 rate pass-through in the Turkish Economy, where their ongoing presence
 could undermine the implementation of a successful monetary policy,
 especially in a flexible exchange rate regime. Even though a considerable
 time has passed after the implementation of a flexible exchange rate
 regime in Turkey, by using Vector Error Correction model for the period
 from 1987 to 2004, we find that the currency substitution and exchange
 rate pass-through still have importance in the Turkish Economy and the
 monetary policy stance has been considerably strong, possibly, as a
 response of ongoing presence of them. If this is the case, to avoid the
 undesired consequences of this strong monetary policy, Turkey should
 consider some policy measures to reduce the degree of pass-through and
 currency substitution. 
Journal: Applied Economics 
Pages: 2365-2378 
Issue: 18 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858018 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858018 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2365-2378




Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Matsui 
Title: Effects of wholesaler concentration on retailers by format: evidence from Japanese brand-level price data 
Abstract:
  Using unique brand-level wholesale price data, this article examines how
 purchase prices of commodities for retailers are influenced by wholesale
 concentration. Compared with studies focusing on retail prices, little
 empirical work has measured the impact of wholesale concentration on
 wholesale prices. Economic theory suggests that the sensitivity of
 purchase price in response to degree of wholesale concentration is smaller
 for large retail formats than for small retail formats in the presence of
 intra-format retail competition. To test the validity of the theoretical
 implication, I measure the impact of the concentration on purchasing
 prices for retailers by format. Empirical findings support the hypothesis
 that the large retail format tends to draw advantageous purchase prices
 when wholesalers become increasingly oligopolistic. 
Journal: Applied Economics 
Pages: 2379-2391 
Issue: 18 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858042 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2379-2391




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Dwane 
Author-X-Name-First: Christine 
Author-X-Name-Last: Dwane 
Author-Name: Philip Lane 
Author-X-Name-First: Philip 
Author-X-Name-Last: Lane 
Author-Name: Tara McIndoe 
Author-X-Name-First: Tara 
Author-X-Name-Last: McIndoe 
Title: Currency unions and Irish external trade 
Abstract:
  Ireland has participated in two currency unions-a bilateral union with
 the UK that lasted until 1979 and as a founder member of European Monetary
 Union (EMU) that began in 1999. This article investigates whether currency
 unions have influenced Irish trade patterns. 
Journal: Applied Economics 
Pages: 2393-2397 
Issue: 19 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858109 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858109 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2393-2397




Template-Type: ReDIF-Article 1.0
Author-Name: Libero Monteforte 
Author-X-Name-First: Libero 
Author-X-Name-Last: Monteforte 
Author-Name: Stefano Siviero 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Siviero 
Title: The economic consequences of euro-area macro-modelling shortcuts 
Abstract:
  Should euro-area economies be modelled in an aggregate (area-wide)
 fashion or in a disaggregate (multi-country) one? This article tackles
 that question from both statistical and economic viewpoint. From a
 statistical viewpoint, aggregation bias criteria are found to signal that
 the degree of structural heterogeneity among euro-area economies is such
 that the loss of information entailed by an aggregate modelling approach
 may be far from trifling. From an economic viewpoint, we investigate the
 following issue. Are those statistically detectable heterogeneities of any
 practical relevance when it comes to supporting monetary policy
 decision-making? To provide an answer to this question, we compute simple
 optimal monetary policy reaction functions on the basis of either an
 aggregate model or a disaggregate one, and compare the associated welfare
 losses. The results suggest that the welfare under-performance of an
 area-wide-model-based rule is not only nonnegligible, but also robust with
 respect to a number of sensitivity analyses. 
Journal: Applied Economics 
Pages: 2399-2415 
Issue: 19 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858075 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2399-2415




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gil-Alana 
Author-Name: Christian Fischer 
Author-X-Name-First: Christian 
Author-X-Name-Last: Fischer 
Title: International travelling and trade: further evidence for the case of Spanish wine based on fractional vector autoregressive specifications 
Abstract:
  This article deals with the relationship between international travelling
 and trade. For this purpose we focus on a particular case study: the
 connection between the Spanish wine exports to Germany and the German
 travellers to Spain. Unlike previous studies we use a methodology based on
 fractional Vector AutoRegressive (VAR) models, which permits us to compute
 the impulse responses in a similar way as in the standard VAR case. The
 results show that the orders of integration of the two series are
 constrained between 0 and 1, being higher for the arrivals series than for
 the exports. The impulse response analysis reveals that an increase in
 travelling produces a positive initial impact on trade though it tends to
 disappear in the long run. 
Journal: Applied Economics 
Pages: 2417-2434 
Issue: 19 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858083 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2417-2434




Template-Type: ReDIF-Article 1.0
Author-Name: Simone Bertoli 
Author-X-Name-First: Simone 
Author-X-Name-Last: Bertoli 
Author-Name: Giampiero Gallo 
Author-X-Name-First: Giampiero 
Author-X-Name-Last: Gallo 
Author-Name: Giorgio Ricchiuti 
Author-X-Name-First: Giorgio 
Author-X-Name-Last: Ricchiuti 
Title: Exchange market pressure: some caveats in empirical applications 
Abstract:
  The Exchange Market Pressure (EMP) index, developed by Eichengreen et al.
 (1994), is widely used as a tool to signal whether pressure on a currency
 is softened or warded off through monetary authorities' interventions or,
 rather, a currency crisis has originated. In this article we show how the
 index is sensitive to some assumptions behind the aggregation of the
 information available (exchange rates, interest rates and reserves),
 especially when emerging countries are involved. Specifically, we address
 the way exchange rate variations are computed and the impact of different
 definitions of the reserves, and we question the constancy of the weights
 adopted. These issues compound with the choice of a fixed threshold when
 crisis episodes are identified through the EMP index. As a result, one
 should exert caution in subsequent econometric analyses where a dependent
 binary variable is built to identify crisis periods. 
Journal: Applied Economics 
Pages: 2435-2448 
Issue: 19 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858059 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858059 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2435-2448




Template-Type: ReDIF-Article 1.0
Author-Name: Harris Neeliah 
Author-X-Name-First: Harris 
Author-X-Name-Last: Neeliah 
Author-Name: Bhavani Shankar 
Author-X-Name-First: Bhavani 
Author-X-Name-Last: Shankar 
Title: Ozone pollution and farm profits in England and Wales 
Abstract:
  Tropospheric ozone is an air pollutant known to adversely affect crop
 yields across Europe. Experimental work is underway to quantify yield
 effects at ambient ozone levels for a number of crops. In this article, we
 undertake direct, farm-level evaluation of the impact of ozone by
 estimating a multi-output profit function using a panel dataset of cereal
 farms in England and Wales. A system of equations, comprising the profit
 function, input and output share equations is estimated using a
 fixed-effects seemingly unrelated regression technique, with ozone as a
 quasi-fixed input. Estimated parameters are used to calculate tropospheric
 ozone-related profit and output supply elasticities. The main findings
 from the profit function show that a 10% increase in average ozone levels
 would decrease variable profits by 1.3% and wheat output supply by 1%.
 These results are of a significantly lower magnitude, but qualitatively
 consistent with findings from similar studies carried out in North
 America. 
Journal: Applied Economics 
Pages: 2449-2458 
Issue: 19 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858158 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858158 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2449-2458




Template-Type: ReDIF-Article 1.0
Author-Name: Lindsay Tedds 
Author-X-Name-First: Lindsay 
Author-X-Name-Last: Tedds 
Title: Keeping it off the books: an empirical investigation of firms that engage in tax evasion 
Abstract:
  This article uses a unique dataset that contains detailed information on
 firms from around the world to investigate factors that affect
 under-reporting behaviour. The empirical strategy employed exploits the
 nature of the dependent variable, which is interval coded, and uses
 interval regression which provides an asymptotically efficient estimator
 provided that the classical linear model assumptions hold. These
 assumptions are investigated using standard diagnostic tests that have
 been modified for the interval regression model. Evidence is presented
 that shows that the firms in all regions engage in under-reporting.
 Regression results indicate that government corruption has the single
 largest causal effect on under-reporting, resulting in the percentage of
 sales not reported to the tax authority being 51.3% higher. Taxes have the
 second single largest causal effect on under-reporting, resulting in the
 percentage of sales not reported to the tax authority being 18.0% higher,
 followed by access to financing at 8.9% higher and organized crime at 7.6%
 higher. Inflation, political instability, exchange rates and the fairness
 of the legal system were found to have no effect on under-reporting. It is
 also found that there is a significant correlation between under-reporting
 and the legal organization of the business, size, age, ownership,
 competition and audit controls. 
Journal: Applied Economics 
Pages: 2459-2473 
Issue: 19 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858141 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2459-2473




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Caliendo 
Author-X-Name-First: Marco 
Author-X-Name-Last: Caliendo 
Author-Name: Katharina Wrohlich 
Author-X-Name-First: Katharina 
Author-X-Name-Last: Wrohlich 
Title: Evaluating the German 'Mini-Job' reform using a natural experiment 
Abstract:
  Increasing work incentives for people with low income is a common topic
 in the policy debate across European countries. The 'Mini-Job' reform in
 Germany had a similar motivation. We carry out an ex-post evaluation to
 identify the short-run effects of this reform. Our identification strategy
 uses an exogenous variation in the interview months in the Socio-Economic
 Panel Study (SOEP), which allows us to distinguish groups that are
 affected by the reform from those who are not. To account for seasonal
 effects we additionally use a Difference-In-Differences (DID) strategy.
 Descriptives show that there is a post-reform increase in the number of
 mini-jobs. However, we show that this increase cannot be causally related
 to the reform, since the short-run effects are very limited. Only single
 men seem to react immediately and increase secondary job holding. 
Journal: Applied Economics 
Pages: 2475-2489 
Issue: 19 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858125 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858125 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2475-2489




Template-Type: ReDIF-Article 1.0
Author-Name: Pablo Mejia-Reyes 
Author-X-Name-First: Pablo 
Author-X-Name-Last: Mejia-Reyes 
Author-Name: Denise Osborn 
Author-X-Name-First: Denise 
Author-X-Name-Last: Osborn 
Author-Name: Marianne Sensier 
Author-X-Name-First: Marianne 
Author-X-Name-Last: Sensier 
Title: Modelling real exchange rate effects on output performance in Latin America 
Abstract:
  This article empirically analyses real per capita GDP growth for six
 Latin American countries (Argentina, Brazil, Chile, Columbia, Mexico,
 Venezuela) in terms of real exchange rate depreciations, inflation and US
 interest rates, focussing on the role of the real exchange rate. We find
 evidence of nonlinearity in this relationship, which we capture through a
 smooth transition regression model. With the exception of Mexico,
 nonlinearity in economic growth is associated with changes in the real
 exchange rate, with depreciations leading to different relationships
 compared with appreciations. Regimes for Mexico are associated with the
 past growth rates, with effectively symmetric effects of real exchange
 rate changes. Although our results are in accord with other recent
 literature in that depreciations may have negative effects for growth, the
 asymmetries we uncover indicate that these effects depend on the
 conditioning state. 
Journal: Applied Economics 
Pages: 2491-2503 
Issue: 19 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858117 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858117 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2491-2503




Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Kou Shang 
Author-X-Name-First: Jui-Kou 
Author-X-Name-Last: Shang 
Author-Name: Fei-Ching Wang 
Author-X-Name-First: Fei-Ching 
Author-X-Name-Last: Wang 
Author-Name: Wei-Ting Hung 
Author-X-Name-First: Wei-Ting 
Author-X-Name-Last: Hung 
Title: A stochastic DEA study of hotel efficiency 
Abstract:
  This current study is the first to apply Stochastic Data Envelopment
 Analysis (SDEA) approach to assess the efficiency of hotels. The
 determinants of hotel efficiency were also investigated employing the
 Tobit regression model approach. The SDEA results show that the SDEA
 efficiency measures are higher than the deterministic ones and the greater
 the stochastic variability of outputs, the closer the envelope moves
 successively to any given observation and the efficiency score approaches
 one. The optimal solution to SDEA involves the presence of some buffer
 (slack) of all outputs. In applications involving practice production
 situation, such buffer (slack) can be interpreted as the firms' need to
 hold inventory, excess capacity and organizational slack against
 stochastic uncertainty of market environment. Our results also indicate
 that resort hotels achieve better efficiency than those in metropolitan
 areas and operating as part of a chain is not the main determinant of the
 efficiency of international tourist hotels in Taiwan. 
Journal: Applied Economics 
Pages: 2505-2518 
Issue: 19 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840701858091 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858091 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2505-2518




Template-Type: ReDIF-Article 1.0
Author-Name: Danny Leung 
Author-X-Name-First: Danny 
Author-X-Name-Last: Leung 
Author-Name: Terence Yuen 
Author-X-Name-First: Terence 
Author-X-Name-Last: Yuen 
Title: Do exchange rates affect the capital-labour ratio? Panel evidence from Canadian manufacturing industries 
Abstract:
  Using industry-level data for Canadian manufacturing industries from 1981
 to 1997, we find empirical evidence of a negative relationship between the
 capital-labour ratio and the user cost of capital relative to the price of
 labour. A 10% increase in the user cost of the Machinery and Equipment
 (M&E) relative to the price of labour results in a 3.3% decrease in the
 M&E-labour ratio in the long run. Assuming complete exchange rate
 pass-through into imported M&E prices, the maximum effect of a permanent
 10% depreciation in the exchange rate is a 1.7% decline in the M&E-labour
 ratio. This result implies that the cumulative growth of the M&E-labour
 ratio during the 1991 to 1997 period would have been 2.3 percentage points
 higher had the dollar not depreciated. This may appear to be significant,
 but considering both M&E as a share of total capital and the capital share
 of nominal output are both approximately one-third, in terms of a simple
 growth accounting framework, the effect on labour productivity is small. 
Journal: Applied Economics 
Pages: 2519-2535 
Issue: 20 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964476 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964476 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2519-2535




Template-Type: ReDIF-Article 1.0
Author-Name: George Davis 
Author-X-Name-First: George 
Author-X-Name-Last: Davis 
Author-Name: Wen You 
Author-X-Name-First: Wen 
Author-X-Name-Last: You 
Title: The time cost of food at home: general and food stamp participant profiles 
Abstract:
  Little is known about the cost of time in food preparation at home. Yet,
 this economic variable is a common thread running through recent concerns
 about obesity and the Food Stamp (FS) program. This article provides
 initial estimates of the time cost in food preparation at home for the
 United States. Two standard methods of estimation are implemented and
 three demographic profiles are considered: (i) the general population,
 (ii) the typical FS participant and (iii) the typical FS participant
 following the United States Department of Agriculture Thrifty Food Plan.
 For the general population and averaging across methods, the time cost
 share of total food cost is about 30% if the individual works in the
 market and at home, but it is about 49% if the individual does not work in
 the market. For the typical FS participant, especially one following the
 Thrifty Food plan, the time cost share of total food cost can be as much
 as 26% higher than the general population. These substantial percentages
 provide strong incentives to purchase food away from home and help
 undermine overall diet quality and the efficacy of the FS program, which
 ignores the time cost in food at home production. 
Journal: Applied Economics 
Pages: 2537-2552 
Issue: 20 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964468 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964468 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2537-2552




Template-Type: ReDIF-Article 1.0
Author-Name: Gareth David Leeves 
Author-X-Name-First: Gareth David 
Author-X-Name-Last: Leeves 
Title: Declining US output volatility and its effect on labour flow volatility: an MGARCH analysis 
Abstract:
  This article analyses flow rates of US workers between employment and
 unemployment using new quarterly data for the period 1967 to 2002.
 Multivariate GARCH models are used to investigate links between flow-rate
 volatilities. The results suggest that links changed substantially in the
 mid 1980s, coinciding with the documented decline in output volatility.
 These changes in adjustment dynamics are consistent with a move to greater
 use of hours rather than worker adjustment. 
Journal: Applied Economics 
Pages: 2553-2561 
Issue: 20 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801949774 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801949774 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2553-2561




Template-Type: ReDIF-Article 1.0
Author-Name: Risa Kumazawa 
Author-X-Name-First: Risa 
Author-X-Name-Last: Kumazawa 
Title: Promotion speed and its effect on attrition of Navy-enlisted personnel: addressing heterogeneity in high school credentials 
Abstract:
  This article investigates the relationship between recruit quality and
 promotion speed of the US Navy's first-term enlisted personnel, which in
 turn is expected to affect retention. It also investigates whether there
 are quality differences between the various types of high school
 credentials presented at the time of recruitment, including test-based and
 attendance-based equivalencies and nontraditional high school diplomas.
 The results of this article suggest that the Navy's recent targeting of
 individuals with alternative high school credentials and nonhigh school
 graduates, who score in the top half of the Armed Forces Qualification
 Tests (AFQTs) as substitutes for diploma holders have desirable results
 for promotion speed but undesirable results for retention. 
Journal: Applied Economics 
Pages: 2563-2576 
Issue: 20 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964450 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964450 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2563-2576




Template-Type: ReDIF-Article 1.0
Author-Name: Vladimir Kuhl Teles 
Author-X-Name-First: Vladimir Kuhl 
Author-X-Name-Last: Teles 
Author-Name: Maria Carolina Leme 
Author-X-Name-First: Maria Carolina 
Author-X-Name-Last: Leme 
Title: Fundamentals or market sentiment: what causes country risk? 
Abstract:
  The country risk indicator, as measured by the JP Morgan's EMBI or grades
 of rating agencies such as Standard & Poor's (S&P's) or Moody's, does not
 seem to truly reflect the fundamentals of an economy. Countries that
 pursue sound economic policies are frequently placed on the same level as
 countries with a populist orientation or with a recent history of default
 or debt restructuring. Such circumstance generates a feeling of unease
 with regard to these ratings. The objective of this article is to
 investigate whether these indicators truly reflect market fundamentals or
 whether some sort of prejudice, or intolerance towards certain countries,
 can be identified. We use the Oaxaca-Blinder decomposition to analyse the
 differences in country risk, measured as by EMBI+, for a group of emerging
 markets. This decomposition allows us to separate the 'justified'
 (differences in fundamentals) from the 'unjustified' differences (same
 fundamental differently evaluated). 
Journal: Applied Economics 
Pages: 2577-2585 
Issue: 20 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964518 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964518 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2577-2585




Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Ho Chiu 
Author-X-Name-First: Yung-Ho 
Author-X-Name-Last: Chiu 
Author-Name: Chun-Mei Ma 
Author-X-Name-First: Chun-Mei 
Author-X-Name-Last: Ma 
Author-Name: Ming-Yuan Sun 
Author-X-Name-First: Ming-Yuan 
Author-X-Name-Last: Sun 
Title: Efficiency and credit rating in Taiwan banking: data envelopment analysis estimation 
Abstract:
  In this article, we use the data envelopment analysis to measure the
 efficiency of banks before and after credit rating is taken into
 consideration and we also employ the Malmquist Productivity Index to
 measure the total factor productivity changes from 2001 to 2003. The
 results are as follows: (1) There is a positive relationship between the
 efficiency scores and credit rating, and thus, the credit rating can be a
 representative to evaluate the performance and quality of a bank; (2) We
 use the Wilconxon two-sample test of nonparametric statistic to test the
 influences of credit rating. The empirical result shows that the credit
 rating is proven to influence the efficiency of banks; (3) The efficiency
 scores improve in both investment grade (above tw BBB-) and speculation
 grade (under tw BBB-), when credit rating is taken into consideration. The
 empirical results show that the efficiency scores of banks with a high
 credit rating improved relatively more when compared to banks with a lower
 credit rating; (4) In this research we also adopt the Malmquist index to
 observe the productivity and efficiency changes from year to year. We
 obtain results whereby the improvement of efficiency may be influenced
 greatly both from pure technical and scale efficiency changes. 
Journal: Applied Economics 
Pages: 2587-2600 
Issue: 20 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964443 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964443 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2587-2600




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Bilson Darku 
Author-X-Name-First: Alexander 
Author-X-Name-Last: Bilson Darku 
Title: Consumption smoothing, capital controls and the current account in Ghana 
Abstract:
  Much of the empirical evidence on developing economies indicates that the
 basic intertemporal model of the current account fails to predict the
 dynamics of the actual current account series. This article argues that
 the model can predict the dynamics of the current account series if it is
 appropriately adjusted to reflect the nature of capital mobility and
 exchange rate policies in these countries. Using data on Ghana that span
 across capital control and liberalized regimes this article reports three
 finding. First, consistent with the existing empirical evidence, the basic
 model fails to predict the dynamics of the actual current account. Second,
 extending the basic model to capture variations in interest rates and
 exchange rates better explains the path of the actual current account
 balances only during the liberalized regime. Third, tests of asymmetric
 access to the international financial market indicate that economic agents
 in Ghana could not use the international financial market to smooth their
 consumption during the capital control regime. However, the liberalization
 program that reduced constraints on capital flows has enabled economic
 agents to use the international capital market to smooth consumption. 
Journal: Applied Economics 
Pages: 2601-2616 
Issue: 20 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964542 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964542 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2601-2616




Template-Type: ReDIF-Article 1.0
Author-Name: Seher Nur Sulku 
Author-X-Name-First: Seher Nur 
Author-X-Name-Last: Sulku 
Title: Econometric testing of purchasing power parity in less developed countries: fixed and flexible exchange rate regime experiences 
Abstract:
  We investigate the Purchasing Power Parity (PPP) hypothesis for 16 Less
 Developed Countries (LDCs), from all over the world, during their fixed
 and flexible exchange rate experiences over the period 1957:01-1999:12.
 The main contribution of this article to the empirical literature on PPP
 is that our study is the first to consider PPP hypothesis on alternative
 exchange rate regimes for LDCs. The bilateral exchange rates of LDCs and
 the United States, and their respective price levels are considered. Three
 different time series methodologies are employed: unit-root tests,
 Engle-Granger (1987) cointegration technique and Johansen multivariate VAR
 methodology (1988). The cointegration techniques improve the results,
 which allows the examination of the more frequent long-run relationship
 between relative prices and nominal exchange rates. Nevertheless, using
 each of econometric techniques we find only a few and a nearly equal
 evidence in favour of PPP under the alternative regimes in LDCs. Hence,
 the main conclusion of our study is that the deviations from PPP in LDCs
 cannot be attributed to the exchange rate regime system. Other market
 regulations should be investigated. 
Journal: Applied Economics 
Pages: 2617-2630 
Issue: 20 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964534 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964534 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2617-2630




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Coric 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Coric 
Author-Name: Geoff Pugh 
Author-X-Name-First: Geoff 
Author-X-Name-Last: Pugh 
Title: The effects of exchange rate variability on international trade: a meta-regression analysis 
Abstract:
  The trade effects of exchange rate variability have been an issue in
 international economics for the past 30 years. The contribution of this
 article is to apply meta-regression analysis (MRA) to the empirical
 literature. On average, exchange rate variability exerts a negative effect
 on international trade. Yet MRA confirms the view that this result is
 highly conditional, by identifying factors that help to explain why
 estimated trade effects vary from significantly negative to significantly
 positive. MRA evidence on the pronounced heterogeneity of the empirical
 findings may be instructive for policy: first, by establishing that
 average trade effects are not sufficiently robust to generalize across
 countries; and second, by suggesting the importance of hedging
 opportunities - hence of financial development - for trade promotion. For
 the practice of MRA, we make a case for checking the robustness of results
 with respect to estimation technique, model specification and sample. 
Journal: Applied Economics 
Pages: 2631-2644 
Issue: 20 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964500 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964500 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2631-2644




Template-Type: ReDIF-Article 1.0
Author-Name: Ludger Wossmann 
Author-X-Name-First: Ludger 
Author-X-Name-Last: Wossmann 
Title: Families, schools and primary-school learning: evidence for Argentina and Colombia in an international perspective 
Abstract:
  This article presents evidence on the associations between family
 background, school characteristics and student performance in primary
 school in Argentina, Colombia and several comparison countries. As a
 general pattern, educational performance is strongly related to family
 background, weakly to some institutional school features and hardly to
 schools' resource endowments. In an international perspective,
 family-background effects are relatively large in Argentina, and
 relatively small in Colombia. A specific Argentine feature is the lack of
 performance differences between rural and urban areas. A specific
 Colombian feature is the lack of significant between-gender performance
 differences. Nonnative students and students not speaking Spanish at home
 perform particularly weak in both countries. In Argentina, students
 perform better in schools with a centralized curriculum and ability-based
 class formation. 
Journal: Applied Economics 
Pages: 2645-2665 
Issue: 21 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964617 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964617 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2645-2665




Template-Type: ReDIF-Article 1.0
Author-Name: Deepananda Herath 
Author-X-Name-First: Deepananda 
Author-X-Name-Last: Herath 
Author-Name: John Cranfield 
Author-X-Name-First: John 
Author-X-Name-Last: Cranfield 
Author-Name: Spencer Henson 
Author-X-Name-First: Spencer 
Author-X-Name-Last: Henson 
Title: Understanding the financing of innovation and commercialization: the case of the Canadian functional food and nutraceutical sector 
Abstract:
  We develop and implement two models to show what factors affect a firm's
 decision to seek external financing and the level of financing obtained in
 the Canadian functional food and nutraceutical sector. Data from a
 national survey of functional foods and nutraceutical firms in Canada,
 conducted by Statistics Canada in 2003, is used for this analysis. Firm
 size, being privately held and engaging in contractual arrangements have
 negative impacts on the likelihood of a firm seeking external funding,
 while firms which are intensively involved in the functional food and
 nutraceutical sector, with greater prospects for business expansion and/or
 involved in partnerships are more likely to seek external financing.
 Larger firms and those involved in functional food and nutraceutical
 research and development receive a greater amount of capital when they
 decide to raise capital. However, firms focused on functional foods and
 nutraceuticals, as opposed to more diversified firms, and those involved
 in product development and concept scale-up, receive less capital. Our
 findings highlight the importance of public support in addressing the
 capital requirements of functional food and nutraceutical firms and
 underscore the considerable burden borne by smaller firms in this respect. 
Journal: Applied Economics 
Pages: 2667-2682 
Issue: 21 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964658 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964658 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2667-2682




Template-Type: ReDIF-Article 1.0
Author-Name: Djeto Assane 
Author-X-Name-First: Djeto 
Author-X-Name-Last: Assane 
Author-Name: Bernard Malamud 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Malamud 
Title: Financial development and growth in sub-Saharan Africa: do legal origin and CFA membership matter? 
Abstract:
  This article examines whether relations between legal origin, financial
 development and economic growth that hold worldwide hold in British and
 French legal origin Sub-Saharan Africa (SSA) as well. We also test for the
 differential impacts on financial development and on growth of Communaute
 Financiere Africaine (CFA) currency union membership within French legal
 origin SSA. Our panel regressions and descriptive measures agree with the
 findings of British legal origin advantage with respect to financial
 development. In addition, financial development contributes positively to
 economic growth in British legal origin SSA, as it does worldwide. Within
 French legal origin SSA, we find that currency union constraints tend to
 hinder financial development in CFA countries beyond the negative impacts
 of French legal origin. Moreover, contributions to the growth of various
 indicators of financial development in French legal origin SSA are
 negative or insignificant irrespective of CFA membership. 
Journal: Applied Economics 
Pages: 2683-2697 
Issue: 21 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964591 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964591 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2683-2697




Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Thornton 
Author-X-Name-First: Jeremy 
Author-X-Name-Last: Thornton 
Author-Name: William Belski 
Author-X-Name-First: William 
Author-X-Name-Last: Belski 
Title: Financial reporting quality and price competition among nonprofit firms 
Abstract:
  Donors increasingly rely on financial information reported by Internal
 Revenue Service (IRS) Form 990 to allocate donations among nonprofit
 firms. However, competition among nonprofits creates an incentive for
 managers to under-report management and fund-raising expenditures to make
 their firms appear relatively efficient. Increasingly, researchers suspect
 that information provided in the Form 990 may not accurately portray the
 true financial condition of nonprofit firms. Inaccurate price information
 weakens the ability of donors to promote efficiency and discipline excess
 among nonprofit managers. This article examines the reaction of donors to
 variation in Form 990 reporting quality. We find that donors reward
 nonprofit firms for investments in more accurate financial reporting.
 Additionally, higher quality financial information sharpens the ability of
 donor markets to discipline nonprofit firms by increasing price
 sensitivity. The primary implication of this study is that regulatory
 improvements in reporting quality could increase the ability of donor
 markets to serve as a viable governance mechanism for improving nonprofit
 efficiency. 
Journal: Applied Economics 
Pages: 2699-2713 
Issue: 21 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964583 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964583 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2699-2713




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Ahmed 
Author-X-Name-First: Ali 
Author-X-Name-Last: Ahmed 
Title: What is in a surname? The role of ethnicity in economic decision making 
Abstract:
  This article reports results from two experiments that investigate
 possible incidence of discrimination against people with foreign
 backgrounds in Sweden. In the first experiment, participants played the
 trust game and the dictator game with co-players of different ethnic
 affiliation. The family name of the players was exposed to their
 co-players. Results for the trust game showed no significant
 discrimination against co-players with foreign backgrounds. On the other
 hand, the results for the dictator game showed a statistically significant
 discriminatory behaviour by men against co-players with non-European
 backgrounds. The discriminatory behaviour was solely a male phenomenon. In
 the second experiment, the dictator game was replicated to check the
 stability of the results in the first experiment. The second experiment
 also examined whether people with foreign backgrounds discriminate against
 other people with foreign backgrounds; that is, the purpose was to
 discover whether discrimination is systematic. The observations in the
 second experiment underlined the results found in the first experiment:
 foreign co-players are discriminated against by Swedish players. However,
 we did not find that people with foreign backgrounds discriminated against
 other people with foreign backgrounds. 
Journal: Applied Economics 
Pages: 2715-2723 
Issue: 21 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964609 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964609 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2715-2723




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Kara 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Kara 
Author-Name: Hande Kucuk-Tu&#x11f;er 
Author-X-Name-First: Hande 
Author-X-Name-Last: Kucuk-Tu&#x11f;er 
Title: Inflation expectations in Turkey: learning to be rational 
Abstract:
  Turkey implemented an ambitious restructuring of the economy in the past
 several years, including the adoption of inflation targeting along with a
 floating exchange rate regime. Inflation came down from almost triple
 digits to single digits between 2001 and 2005. This particular episode of
 the Turkish economy sets a genuine case study for investigating the
 possible changes in the behaviour of inflation expectations upon a regime
 shift. Accordingly, this study analyses inflation expectations in Turkey,
 focusing especially on the post-2001 transition phase. We first conduct
 classical tests of unbiasedness and efficiency using aggregate survey data
 between August 2001 and October 2007 to get a statistical benchmark for
 rationality; we find that classical tests reject full rationality
 hypothesis for all series except next month's Consumer Price Index (CPI)
 inflation expectations. Then, we carry out Time-Varying Parameter (TVP)
 estimates based on a Kalman filter to see how the coefficients in the
 classical test equations evolve over time. This framework allows us to see
 whether there is convergence to rationality in terms of unbiasedness and
 efficiency. We find that forecast performance has improved through time,
 as the coefficients on the test equations shows movement towards values
 implied by unbiasedness and efficiency hypotheses, supporting the learning
 hypothesis. 
Journal: Applied Economics 
Pages: 2725-2742 
Issue: 21 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964559 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964559 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2725-2742




Template-Type: ReDIF-Article 1.0
Author-Name: Chao-Liang Chen 
Author-X-Name-First: Chao-Liang 
Author-X-Name-Last: Chen 
Title: The pension costs from a defined benefit to individual pension accounts: do they cost more in the case of Taiwan? 
Abstract:
  This article develops a market-based liability valuation model to price
 individual pension costs of a Defined Benefit (DB) pension plan. The
 purpose is to compare them with the new labour pension plan, Individual
 Pension Accounts (IPAs), in the case of Taiwan. The results based on the
 numerical approach show that the new IPAs cost a company more than the old
 DB plan, except if the average wage growth relative to the risk-free
 interest rate is high enough. 
Journal: Applied Economics 
Pages: 2743-2750 
Issue: 21 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964567 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964567 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2743-2750




Template-Type: ReDIF-Article 1.0
Author-Name: Carmelo Reverte 
Author-X-Name-First: Carmelo 
Author-X-Name-Last: Reverte 
Author-Name: Isidoro Guzman 
Author-X-Name-First: Isidoro 
Author-X-Name-Last: Guzman 
Title: The predictive ability of relative efficiency for future earnings: an application using data envelopment analysis to Spanish SMEs 
Abstract:
  Research on earnings prediction has documented that the transitory
 component of current earnings undermines its predictive ability about
 future earnings. The implication of this finding is that a measure that
 better captures the underlying persistent component of earnings may prove
 very useful in predicting future earnings when used along with current
 earnings. Our study, based on a large sample of 1939 Spanish Small and
 medium Enterprises (SMEs), investigates whether an alternative measure of
 performance ignored in previous research on earnings forecasting-i.e.
 relative efficiency-has predictive ability over and above current earnings
 and book value of equity. Relative efficiency captures the inherent
 ability of a firm-as compared to other similar firms-to make the most
 productive use of available resources and is measured using Data
 Envelopment Analysis (DEA) nonparametric technique. Our findings highlight
 that our DEA-based efficiency measure has an incremental predictive
 ability over and above current earnings and book value of equity for
 predicting future earnings. Moreover, we have further validated the models
 in a holdout sample and our results evidence the highest forecast accuracy
 of the model that includes our efficiency measure as an additional
 predictor to current earnings and book value of equity. 
Journal: Applied Economics 
Pages: 2751-2757 
Issue: 21 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964575 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964575 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2751-2757




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Graff 
Author-X-Name-First: Michael 
Author-X-Name-Last: Graff 
Title: Does a multi-sectoral design improve indicator-based forecasts of the GDP growth rate? Evidence from Switzerland 
Abstract:
  This article presents a multi-sectoral composite indicator for the Swiss
 GDP growth rate, targeting a lead of two quarters. The in-sample period
 ranges from 1991 to 2002 and 14 data points are reserved as out of sample
 to assess the forecasting performance. The results appear promising, in
 terms of both phase and amplitude. Comparisons with two other uni-sectoral
 composite leading indicators for the same reference series-the traditional
 KOF (Konjunkturforschungsstelle) barometer as published until March 2006
 and a uni-sectoral composite indicator computed from the same indicators
 as the multi-sectoral instrument-show that the new approach is superior to
 the alternatives, which is due to both its broader information basis as
 well as to the structure that is imposed by the multi-sectoral design.
 Yet, there are pronounced differences regarding the accuracy of the
 sectoral forecasts, so that there is scope for improvement. 
Journal: Applied Economics 
Pages: 2759-2781 
Issue: 21 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964641 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964641 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2759-2781




Template-Type: ReDIF-Article 1.0
Author-Name: A. Slaibi 
Author-X-Name-First: A. 
Author-X-Name-Last: Slaibi 
Author-Name: D. Chapman 
Author-X-Name-First: D. 
Author-X-Name-Last: Chapman 
Author-Name: H. Daouk 
Author-X-Name-First: H. 
Author-X-Name-Last: Daouk 
Title: A geopolitical theory of oil price behaviour: an econometric evaluation 
Abstract:
  Previous work on crude oil price modelling has generally focused on two
 theoretical approaches, either the+ optimal control analysis of pricing of
 a depletable resource or Organization of the Petroleum Exporting Countries
 (OPEC) as a partial monopolist setting oil prices to maximize net present
 value. Neither has been wholly satisfactory. We consider a different
 perspective: a cooperative framework in which political and military
 factors interacted with economic considerations for oil exporters and
 importers to define a Target Price Zone (TPZ). We analyse several issues
 in this context: monthly versus annual average prices, beginning and
 ending dates for TPZs, degree of stability in several price series (West
 Texas Intermediate (WTI), Brent, etc.), Free On Board (FOB) and landed
 prices, real or nominal prices, OPEC behaviour and effect of the Euro
 exchange rate on dollar denominated oil prices. We conclude that a TPZ
 system was in operation from 1986 through 2003. The TPZ worked imperfectly
 but with a substantial degree of predictability for 18 years. In 2004, the
 TPZ system deteriorated for several reasons and has not been
 re-established. Perhaps the US government supports the Saudis because it
 has always believed it had a two-way relation with OPEC generally and the
 Persian Gulf countries in particular. We give them protection and they
 supply oil.1 The Bush trip [1986] came as an additional incentive to
 restore some stability to prices &#x2026; What they [the Saudis] heard was
 the Vice President of the United States of America saying that the price
 collapse was destabilizing and threatened the security of the United
 States &#x2026; The Saudis looked to the United States for their own
 security; surely, they thought in the aftermath of the Bush visit, they
 would have to be attentive to the security needs of the United States.2 
Journal: Applied Economics 
Pages: 2783-2800 
Issue: 22 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964724 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964724 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2783-2800




Template-Type: ReDIF-Article 1.0
Author-Name: Brigitte Desroches 
Author-X-Name-First: Brigitte 
Author-X-Name-Last: Desroches 
Author-Name: Michael Francis 
Author-X-Name-First: Michael 
Author-X-Name-Last: Francis 
Title: World real interest rates: a global savings and investment perspective 
Abstract:
  Over the past 15 years, long-term interest rates have declined to levels
 not seen since the 1970s. This article explores possible shifts in global
 savings and investment that have led to this fall in the world real
 interest rate. There are several key findings. First, the authors identify
 the relative weakness in investment demand as more important than the
 relative increase in desired global savings to explain the decline in
 global interest rates. Second, the results indicate that the key factors
 explaining movements in savings and investment are variables that evolve
 relatively slowly over time, such as labour force growth and age
 structure. The conclusions suggest that over the coming years, world real
 interest rates are likely to continue to adjust slowly, reflecting
 long-term trends. 
Journal: Applied Economics 
Pages: 2801-2816 
Issue: 22 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964690 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964690 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2801-2816




Template-Type: ReDIF-Article 1.0
Author-Name: Adalbert Mayer 
Author-X-Name-First: Adalbert 
Author-X-Name-Last: Mayer 
Title: The evolution of wages over the lifecycle: insights from intergenerational connections 
Abstract:
  This article uses intergenerational information to improve our
 understanding of lifecycle wage dynamics. I present a simple statistical
 model that relates the wages of workers at different points in their
 lifecycle to the earnings of their parents. I decompose cross-sectional
 variance of wages into a permanent component related to parental
 background, a permanent component unrelated to parental background, and a
 transitory component. Data from the Panel Study of Income Dynamics (PSID)
 suggests that intergenerational relationships are stronger when measured
 later in the lifecycle of the son. This implies that the permanent
 parent-related component is increasingly important for wage determination
 as workers grow older. This is not consistent with wage evolution through
 persistent random shocks. Rather, it is consistent with human capital
 models and learning models of wage evolution. 
Journal: Applied Economics 
Pages: 2817-2833 
Issue: 22 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964682 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964682 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2817-2833




Template-Type: ReDIF-Article 1.0
Author-Name: N. Guertzgen 
Author-X-Name-First: N. 
Author-X-Name-Last: Guertzgen 
Title: Rent-sharing and collective wage contracts-evidence from German establishment-level data 
Abstract:
  Using German establishment-level data, this article analyses whether
 wages respond to firm-specific profitability conditions. Particular
 emphasis is given to the question of whether the extent of rent-sharing
 varies with collective bargaining coverage. In this context, two
 conflicting hypotheses are tested. The first one asserts that unions
 exploit their bargaining power at the firm level and appropriate a larger
 share of rents than the bargaining parties in uncovered firms. The second
 one states that unions favour a compressed intra-industry wage structure
 and suppress the responsiveness of wages to firm-specific profitability
 conditions. The empirical analysis provides strong support for the second
 hypothesis. While Pooled Ordinary Least Squares (POLS) estimates yield
 positive estimates of the rent-sharing coefficient in covered
 establishments, dynamic panel data estimates accounting for unobserved
 heterogeneity and the endogeneity of rents point to a rent-sharing
 coefficient of zero. 
Journal: Applied Economics 
Pages: 2835-2854 
Issue: 22 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964708 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964708 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2835-2854




Template-Type: ReDIF-Article 1.0
Author-Name: David Nawrocki 
Author-X-Name-First: David 
Author-X-Name-Last: Nawrocki 
Author-Name: William Carter 
Author-X-Name-First: William 
Author-X-Name-Last: Carter 
Title: Industry competitiveness using Herfindahl and entropy concentration indices with firm market capitalization data 
Abstract:
  While previous studies of industry concentration have traditionally
 utilized sales or market share data, no studies that we are aware of have
 been done with market capitalization data. If the markets are successful
 at valuing a firm's current and future prospects, it can be argued that
 concentration indices and other metrics based on the market value of the
 firms in an industry should be a good proxy for market power within an
 industry. This study presents a study of the market concentration using
 the Herfindahl and entropy concentration indices for 13 industries. 
Journal: Applied Economics 
Pages: 2855-2863 
Issue: 22 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964666 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964666 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2855-2863




Template-Type: ReDIF-Article 1.0
Author-Name: Sandy Suardi 
Author-X-Name-First: Sandy 
Author-X-Name-Last: Suardi 
Title: Nonstationarity, cointegration and structural breaks in the Australian term structure of interest rates 
Abstract:
  This article examines the unit-root property of the Australian short- and
 long-term interest rates using unit-root tests that accommodate a single
 or two breaks under the null and/or alternative hypothesis. Two breaks in
 interest rates are found to coincide with the 1982/83 and 1990/91
 recessions or the 1993 inflation targeting period. We further investigate
 the implications of these structural breaks on the cointegrating
 relationship implied by the single, linear expectations hypothesis of the
 term structure of interest rates. While there is evidence that the data
 are consistent with the expectations hypothesis at the shorter end of the
 term structure, breaks in interest rates generate a shift in the
 cointegrating relationship, thus altering the information content of the
 term structure. Failing to account for a regime shift in the cointegration
 regression, the data erroneously supports the expectations hypothesis at
 the longer end of the term structure. These results have profound
 implications for policy makers who may inadequately exploit the
 information content of the term structure to predict future changes in
 inflation. 
Journal: Applied Economics 
Pages: 2865-2879 
Issue: 22 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964625 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964625 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2865-2879




Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani 
Author-X-Name-First: Abbas 
Author-X-Name-Last: Valadkhani 
Author-Name: Simon Ville 
Author-X-Name-First: Simon 
Author-X-Name-Last: Ville 
Title: Ranking and clustering of the faculties of commerce research performance in Australia 
Abstract:
  There is a growing policy focus in Australian higher education on
 quantitative research performance assessment. However, most of the
 analysis has addressed aggregate performance at the institutional level,
 an approach inconsistent with recent policy emphasis on diversity among
 universities and one that ignores performance variations across
 disciplines. Using averaged and all available data for 2000-2004, cluster
 analysis is used to classify Australian Commerce Faculties into groups
 that exhibit similar research performance, measured by publication, PhD
 completion and secured competitive research grant funding. We also use
 factor analysis to generate full-multidimensional rankings within the
 resulting two or three clusters. It is found that in terms of total
 research output, with the exception of Adelaide all the Group of 8 (Go8)
 members plus University of Technology, Sydney and Griffith always belong
 to 'Clusters A'. However, when research performance is expressed in per
 academic staff terms, an additional 11 universities join this same
 cluster. Our results additionally show that eight Australian faculties of
 Commerce not only possess low total research output but their per capita
 performance is also poor. 
Journal: Applied Economics 
Pages: 2881-2895 
Issue: 22 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964674 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964674 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2881-2895




Template-Type: ReDIF-Article 1.0
Author-Name: Jeng Bau Lin 
Author-X-Name-First: Jeng Bau 
Author-X-Name-Last: Lin 
Author-Name: Chin Chia Liang 
Author-X-Name-First: Chin Chia 
Author-X-Name-Last: Liang 
Title: Testing for threshold cointegration and error correction: evidence in the petroleum futures market 
Abstract:
  This article examines the existence of threshold cointegration between
 futures and spot prices for the Brent petroleum market. We then estimate
 the asymmetric error-correction specification utilizing the Momentum
 Threshold Autoregressive Consistent (M-TAR-C) approach particularly
 proposed by Enders and Siklos (2001). We find that, for the daily data
 over 2 January 2001 through 15 October 2006, the petroleum futures prices
 are cointegrated with the spot prices. This effectively confirms the
 expectations hypothesis and that asymmetric adjustments for the futures
 basis towards the long-run value display a negative basis from the
 long-run equilibrium level more persistently than a positive basis from
 that level. The empirical result suggests that short-run arbitrages
 manipulating buy-long (sell-short) futures contracts be profitable when a
 positive basis is weakening (a negative basis is strengthening). 
Journal: Applied Economics 
Pages: 2897-2907 
Issue: 22 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964716 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964716 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2897-2907




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dueker 
Author-X-Name-First: Michael 
Author-X-Name-Last: Dueker 
Author-Name: Katrin Assenmacher-Wesche 
Author-X-Name-First: Katrin 
Author-X-Name-Last: Assenmacher-Wesche 
Title: Forecasting macro variables with a Qual VAR business cycle turning point index 
Abstract:
  One criticism of Vector Autoregression (VAR) forecasting is that
 macroeconomic variables tend not to behave as linear functions of their
 own past around business cycle turning points. A large amount of
 literature therefore focuses on nonlinear forecasting models, such as
 Markov switching models, which only indirectly capture the relation with
 turning points. This article investigates a direct approach to using
 information on turning points from the National Bureau of Economic
 Research (NBER) chronology to model and forecast macroeconomic data. Our
 Qual VAR model includes a truncated normal latent business cycle index
 that is negative during NBER recessions and positive during expansions. We
 motivate our forecasting exercise by demonstrating that if starting from a
 linear specification, a truncated normal variable is an omitted variable,
 then forecasts of the remaining variables will become nonlinear functions
 of their own past. We apply the Qual VAR model to recursive out-of-sample
 forecasting and find that the Qual VAR improves on out-of-sample forecasts
 from a standard VAR. 
Journal: Applied Economics 
Pages: 2909-2920 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964732 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2909-2920




Template-Type: ReDIF-Article 1.0
Author-Name: Feng Liu 
Author-X-Name-First: Feng 
Author-X-Name-Last: Liu 
Title: Cutting through the smoke: separating the effect of price on smoking initiation, relapse and cessation 
Abstract:
  I employ a large national representative dataset (Current Population
 Survey-Tobacco Use Supplements) to investigate how cigarette prices affect
 smoking decisions. A standard econometric approach is to estimate the
 relationship between cigarette prices and smoking participation at a point
 in time. I extend this approach to model past-year decisions to start,
 resume or quit smoking. Considering reverse causality, I apply an
 instrumental variable (excise taxes) for cigarette prices. I include an
 index of state-level anti-smoking sentiment to control for omitted
 variable bias. After estimating separate models for smoking initiation,
 relapse and cessation and for different age groups, I find no evidence
 that increasing taxes on cigarettes can prevent the onset of youth
 smoking. Neither does it effectively induce young smokers to quit.
 However, cigarette prices do play an important role to prevent relapse and
 encourage quitting at older ages. 
Journal: Applied Economics 
Pages: 2921-2939 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964880 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964880 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2921-2939




Template-Type: ReDIF-Article 1.0
Author-Name: Tolga Omay 
Author-X-Name-First: Tolga 
Author-X-Name-Last: Omay 
Author-Name: Mubariz Hasanov 
Author-X-Name-First: Mubariz 
Author-X-Name-Last: Hasanov 
Title: The effects of inflation uncertainty on interest rates: a nonlinear approach 
Abstract:
  In this article, we investigate the effects of inflation variability on
 short-term interest rates within a nonlinear smooth transition regression
 framework. The test results suggest that only the conditional mean of the
 inflation is a nonlinear process whereas the conditional variance is time
 variant but linear. Using the square root of conditional variance as a
 proxy for inflation risk, we estimate Fisher equation augmented with
 inflation risk. Although the estimated Fisher equations suggest that
 inflation risk reduces short-term interest rates, we find that the effects
 of inflation risk on interest rates are regime-dependent. Particularly, we
 find that the negative effects of inflation variability on nominal rates
 are greater in low-inflationary regimes when compared to high-inflationary
 regimes. On the other hand, it is found that both inflation and inflation
 uncertainty raise the expected inflation effect. 
Journal: Applied Economics 
Pages: 2941-2955 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964757 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964757 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2941-2955




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Shoesmith 
Author-X-Name-First: Gary 
Author-X-Name-Last: Shoesmith 
Title: Four factors that explain both the rise and fall of US crime, 1970-2003 
Abstract:
  Previous research has failed to explain the rise and fall of US crime
 since 1970. This study uses cointegration, error correction and common
 long-memory components analyses to demonstrate that four basic crime
 factors explaining both the increases in US violent and property crime
 between 1970 and 1991 and the dramatic declines in crime after 1991. The
 four factors include arrest rates, income per capita, the proportion of
 criminal-justice resources devoted to drug crime and alcohol consumption.
 Error correction models and common long-memory factors show an especially
 close link between crime rates and the percentage of prison resources
 devoted to drug offenders. Similar factors result in cointegrated models
 for murder, rape, robbery, assault and larceny. Additional modelling shows
 that effective abortion rates computed along the lines of Donohue and
 Levitt (2001) do not help in explaining the rise and fall of US crime. 
Journal: Applied Economics 
Pages: 2957-2973 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964765 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964765 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2957-2973




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-eun Lee 
Author-X-Name-First: Jong-eun 
Author-X-Name-Last: Lee 
Title: Inequality in the globalizing Asia 
Abstract:
  This article investigates the impact of globalization on the inequality
 of Asia. It is the first attempt to examine 11 Asian countries' panel data
 allowing nonlinearity between globalization and inequality from 1960 to
 2003 with robustness check. We also survey the literature on growth,
 globalization, and inequality and reflect their endogenous relationships
 to our article. We found the significant turning point of globalization at
 which inequality starts decreasing as further globalization proceeds. It
 will offer us policy implications for the ongoing process of globalization
 in the Asian economies. 
Journal: Applied Economics 
Pages: 2975-2984 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964781 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964781 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2975-2984




Template-Type: ReDIF-Article 1.0
Author-Name: Nissim Ben David 
Author-X-Name-First: Nissim Ben 
Author-X-Name-Last: David 
Title: Government policy to reduce pollution emissions within the overlapping generations model 
Abstract:
  This article develops an overlapping generations model with multiple
 categories of capital. The importance of this article is in its ability to
 analyse changes in the distribution of various categories of capital along
 the growth path of the economy. Economic growth is accompanied by capital
 growth as well as increase in pollution emissions. Implementing a
 government policy to reduce pollution emission would change the
 equilibrium path of capital distribution. Within the model, the government
 builds a corporate tax function that defines the tax rate as a function of
 a 'desired' pollution level. The tax rate decreases as the 'desired'
 pollution level is higher. When the 'desired' pollution level is higher
 than the actual pollution level, production is subsidized and pollution
 levels rise. An example and a simulation are presented in order to confirm
 the theoretical results and demonstrate that the model can be used for
 empirical analysis. 
Journal: Applied Economics 
Pages: 2985-2998 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964799 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964799 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2985-2998




Template-Type: ReDIF-Article 1.0
Author-Name: Doyoung Kim 
Author-X-Name-First: Doyoung 
Author-X-Name-Last: Kim 
Title: The use of stock-based pay for sorting: an empirical analysis of compensation for new CEOs 
Abstract:
  Examining stock-based compensation for newly hired CEOs, this article
 finds that the sensitivity of stock-based pay to performance is higher for
 new economy, young and volatile firms. Of the components of stock-based
 pay, it is option grants that generate such variation across firms. It
 also finds that this cross-firm variation in pay-performance sensitivity
 is more pronounced for the CEO's first year in office. These findings
 support the view that firms use stock-based pay to new CEOs for sorting. 
Journal: Applied Economics 
Pages: 2999-3010 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964807 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964807 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2999-3010




Template-Type: ReDIF-Article 1.0
Author-Name: Shao-Hsun Keng 
Author-X-Name-First: Shao-Hsun 
Author-X-Name-Last: Keng 
Author-Name: Yang Li 
Author-X-Name-First: Yang 
Author-X-Name-Last: Li 
Title: Decomposition of total factor productivity in world health production: a stochastic frontier approach 
Abstract:
  While countries around the globe have increased spending on health care,
 economists and policy makers have raised concerns over the productivity
 and efficiency of health care. This article applies a stochastic frontier
 approach to address this issue using data from 141 countries for the
 period 1993 to 1997. From the perspective of productivity change, our
 results suggest that gains in population health will be greater provided
 that more resources are allocated to investment in human capital. We also
 show that the scale component accounts for 65-70% of the productivity
 change. That is, omitting the scale component in our case will result in a
 significant underestimation of the decline in the productivity of world
 health production. We do not find evidence supporting the hypothesis that
 production frontiers differ between Organization for Economic Cooperation
 and Development (OECD) and non-OECD countries. However, the change in
 productivity and scale elasticity do vary significantly between these
 countries. 
Journal: Applied Economics 
Pages: 3011-3021 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964815 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964815 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:3011-3021




Template-Type: ReDIF-Article 1.0
Author-Name: Maxym Chaban 
Author-X-Name-First: Maxym 
Author-X-Name-Last: Chaban 
Title: Cointegration analysis with structural breaks and deterministic trends: an application to the Canadian dollar 
Abstract:
  This article applies recent developments in cointegration analysis with
 structural breaks and deterministic trends to analyse the relationship
 between the real Canada-US exchange rate and commodity prices. Previous
 empirical studies disagree on whether these variables are cointegrated.
 The root of disagreement could be in the handling of deterministic trends
 and potential structural breaks. I find that even after controlling for
 these matters, the question of whether the real exchange rate and
 commodity prices are cointegrated for Canada remains unresolved. 
Journal: Applied Economics 
Pages: 3023-3037 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964823 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964823 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:3023-3037




Template-Type: ReDIF-Article 1.0
Author-Name: Ofer Azar 
Author-X-Name-First: Ofer 
Author-X-Name-Last: Azar 
Title: Do people tip because of psychological or strategic motivations? An empirical analysis of restaurant tipping 
Abstract:
  One of the most interesting and central questions about tipping is why
 people tip. The two major potential reasons are strategic behaviour aimed
 to ensure good future service and social/psychological motivations. Data
 on tipping behaviour suggests that there is no positive effect of
 patronage frequency on the sensitivity of tips to service quality. This
 implies that people tip only because of social and psychological
 motivations, and not because of strategic reasons and future service
 considerations. 
Journal: Applied Economics 
Pages: 3039-3044 
Issue: 23 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964831 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964831 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:3039-3044




Template-Type: ReDIF-Article 1.0
Author-Name: P. Hiebert 
Author-X-Name-First: P. 
Author-X-Name-Last: Hiebert 
Author-Name: I. Vansteenkiste 
Author-X-Name-First: I. 
Author-X-Name-Last: Vansteenkiste 
Title: International trade, technological shocks and spillovers in the labour market: a GVAR analysis of the US manufacturing sector 
Abstract:
  We empirically analyse the response of labour market related variables in
 the US manufacturing sector to various shocks, notably to trade openness
 and technology, as well as examining spillovers from industry-specific
 labour market shocks. The econometric approach involves an application of
 the recently developed Global Vector Autoregression methodology of Dees et
 al. (2007) to 12 manufacturing industries over the period 1977-2003. The
 framework allows us to analyse the response of a standard set of
 labour-market related variables (employment, real compensation,
 productivity and capital stock) to exogenous factors (a sector-specific
 measure of trade openness, a common technology and oil price shock), along
 with industry spillovers using specific measures of manufacturing-wide
 variables for each sector. Generalized impulse responses indicate that
 increased trade openness negatively affects real compensation, has
 negligible employment effects and leads to higher labour productivity.
 These impacts, however, are relatively weaker than those induced by
 technology shocks, with the latter positively and significantly affecting
 both real compensation and employment. There is also evidence of positive
 spillovers across industries from sector-specific employment and
 productivity shocks. Impact elasticities suggest strong intra-sectoral
 linkages for employment and capital stock formation, contrasting with weak
 linkages for what concerns real compensation and productivity. 
Journal: Applied Economics 
Pages: 3045-3066 
Issue: 24 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964864 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964864 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3045-3066




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Chiquiar 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Chiquiar 
Author-Name: Antonio Noriega 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Noriega 
Author-Name: Manuel Ramos-Francia 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Ramos-Francia 
Title: A time-series approach to test a change in inflation persistence: the Mexican experience 
Abstract:
  When a central bank commits credibly to a nonaccommodative monetary
 policy, observed inflation should be a stationary process. In countries
 where, for a variety of reasons, the determinants of inflation could lead
 it to follow a nonstationary process, the adoption of a credible
 disinflationary programme should therefore induce a fundamental change in
 the stochastic process governing inflation and, in particular, should
 diminish its persistence. This article studies the time-series properties
 of both inflation and core inflation during the 1995-2006 period for the
 Mexican economy, using recently developed techniques to detect a change in
 the persistence of economic time series. Consistently with the adoption of
 an inflation-targeting framework, the results suggest that inflation in
 Mexico seems to have indeed switched from a nonstationary to a stationary
 process around the end of year 2000 or the beginning of 2001. 
Journal: Applied Economics 
Pages: 3067-3075 
Issue: 24 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801982684 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801982684 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3067-3075




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Cuesta 
Author-X-Name-First: Jose 
Author-X-Name-Last: Cuesta 
Title: How much of a threat to economic growth is a mature AIDS epidemic? 
Abstract:
  The article models the impact on economic growth of HIV/AIDS when the
 epidemic is in a mature phase, in contrast with previous studies focused
 on periods of expansion as it is typically the case in African countries.
 Simulations for Honduras, the epicentre of the epidemic in Central
 America, show that AIDS is not likely to threaten economic growth neither
 through labour nor capital accumulation channels. Impacts are estimated
 between 0.007 and 0.27% points of Gross Domestic Product (GDP) growth
 annually for the period 2001 to 2010. Increasing spending on prevention,
 higher public treatment subsidies and increasing treatment access will not
 jeopardize economic growth prospects. Critical factors that slash economic
 growth in Africa (such as human capital reductions and shifts in relative
 skills) are not strong in Honduras. 
Journal: Applied Economics 
Pages: 3077-3089 
Issue: 24 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964849 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964849 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3077-3089




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Mohsin 
Author-X-Name-First: Mohammed 
Author-X-Name-Last: Mohsin 
Title: The dynamic effects of tax policies in a small open economy 
Abstract:
  We develop an intertemporal optimizing model of a small open economy with
 both durable and nondurable consumption to address the implications of
 alternative tax policies. An increase in lump sum taxes reduces the steady
 state level of consumption and improves the stock of foreign bonds.
 Consistent with empirical evidence, durable consumption exhibits initial
 excess volatility. Though an increase in the tax on durables increases the
 demand for nondurables and improves the bond holdings in the steady state,
 an increase in the tax on nondurables has insignificant effects on the
 stock of foreign bonds and the consumption of durables. Using quarterly
 data from the UK and estimating generalized impulse response functions we
 find empirical support. We also calibrate the welfare implications of
 different tax policies. 
Journal: Applied Economics 
Pages: 3091-3104 
Issue: 24 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964856 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964856 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3091-3104




Template-Type: ReDIF-Article 1.0
Author-Name: David Zimmer 
Author-X-Name-First: David 
Author-X-Name-Last: Zimmer 
Title: The effect of double coverage on health care utilization of children 
Abstract:
  Double coverage refers to a situation in which a person is covered by
 more than one health plan. In a family in which the husband and wife are
 both offered employer-provided insurances, it is possible for one or more
 family members to be double covered. This article is the first to examine
 double coverage of children and quantify the effects of double coverage on
 health care utilization for any population. Results show that double
 coverage does not affect the frequency at which children consume medical
 services, but rather double coverage leads children to consume more
 expensive forms of health care. 
Journal: Applied Economics 
Pages: 3105-3117 
Issue: 24 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964898 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964898 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3105-3117




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Waldkirch 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Waldkirch 
Title: The structure of multinational activity: evidence from Germany 
Abstract:
  Recent empirical studies of the determinants of multinational activity
 across countries have found overwhelming support for a horizontal rather
 than a vertical model of Foreign Direct Investment (FDI). The majority of
 these studies use data either originating in or targeted at the US. This
 article presents evidence from a dataset of German inward and outward FDI.
 The dataset is similar in scope to the widely used US Bureau of Economic
 Analysis data, making the results comparable to those from previous
 studies. In addition, a new empirical specification is employed that
 avoids some of the problems that have plagued these studies. The results
 provide little indication of vertical multinationals. FDI happens largely
 between similarly endowed countries. Multinational firms originate in
 skilled-labour abundant countries, although the evidence is mixed on
 whether they are also small. A novel result is that German firms invest
 disproportionately in other European countries, while the reverse is not
 true. 
Journal: Applied Economics 
Pages: 3119-3133 
Issue: 24 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801964872 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964872 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3119-3133




Template-Type: ReDIF-Article 1.0
Author-Name: Xuan-Vinh Vo 
Author-X-Name-First: Xuan-Vinh 
Author-X-Name-Last: Vo 
Title: Net private capital flows and economic growth-the case of emerging Asian economies 
Abstract:
  This article makes an exploratory empirical investigation into the
 relationship between net private capital flows and economic growth using a
 panel dataset from emerging Asian countries, namely South Korea,
 Indonesia, Malaysia, Thailand and the Philippines, over the period
 1980-2001. Overall, this article indicates that net private capital helps
 to promote economic growth for the countries in the sample. In addition,
 this article also supports the view that net private capital flows will
 better contribute to economic growth under a sound policy and economic
 environment. This article also seeks to improve the estimation results by
 controlling for reverse causality as an econometric method that can
 control, for reverse causality is very important to examining the
 relationship between net private capital flows and economic growth. To
 tackle this issue, this article employs the Generalized Method of Moments
 (GMM) estimation technique, which is an econometric technique that can
 handle the reverse causality using the lagged explanatory variables as
 instruments. 
Journal: Applied Economics 
Pages: 3135-3146 
Issue: 24 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801982676 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801982676 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3135-3146




Template-Type: ReDIF-Article 1.0
Author-Name: Abid Burki 
Author-X-Name-First: Abid 
Author-X-Name-Last: Burki 
Author-Name: G. S. K. Niazi 
Author-X-Name-First: G. S. K. 
Author-X-Name-Last: Niazi 
Title: Impact of financial reforms on efficiency of state-owned, private and foreign banks in Pakistan 
Abstract:
  This article uses a unique bank level data from 1991 to 2000 and
 evaluates how financial reforms affect banking efficiency of domestic and
 foreign banks in Pakistan. The results suggest that banking efficiency
 falls during initial reform period when banks adjust to enhanced
 competition but increases in more advanced stages of reform. While in
 general foreign and private banks show superior efficiency and factor
 productivity than do state-owned banks, the relative performance of
 foreign banks worsens after the consolidation stage of the financial
 reforms is over. We show the importance of link between bank size, asset
 quality and bank branches with efficiency indexes and also note that every
 10% increase in share of nonperforming to total loans decreases banking
 efficiency by 6 to 10%. 
Journal: Applied Economics 
Pages: 3147-3160 
Issue: 24 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112315 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112315 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3147-3160




Template-Type: ReDIF-Article 1.0
Author-Name: Chuen-Ping Chang 
Author-X-Name-First: Chuen-Ping 
Author-X-Name-Last: Chang 
Author-Name: Jyh-Horng Lin 
Author-X-Name-First: Jyh-Horng 
Author-X-Name-Last: Lin 
Title: Bank liquidity providing in a real synergy management under a cap-based valuation 
Abstract:
  Since banks often lend via commitments, their lending and deposit-taking
 may be two manifestations of one primitive function: the provision of
 liquidity on demand. We explore this function under a cap-based valuation.
 We find that (i) the strike price of the cap-based valuation increases the
 bank's liquid asset holdings by increasing its loan rate and loan
 commitment rate (with the strategic rate-adjustment complements) and
 decreases the bank's external finance need by increasing its deposit rate,
 when the bank realizes a less risky state of the world and (ii) the number
 of caplet days decreases the bank's liquid asset holdings by decreasing
 its loan rate and loan commitment rate (with the strategic rate-adjustment
 complements and the strategic timing substitutes) and increases the bank's
 external finance need by decreasing its deposit rate (with the strategic
 timing substitutes), when the bank realizes a more risky state. Our
 findings provide alternative explanations concerning the bank's liquidity
 function under the cap-based optimization. 
Journal: Applied Economics 
Pages: 3161-3173 
Issue: 24 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360088 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360088 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3161-3173




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Fisher 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Fisher 
Author-Name: Angela Lyons 
Author-X-Name-First: Angela 
Author-X-Name-Last: Lyons 
Title: Information and credit access: using bankruptcy as a signal 
Abstract:
  Legally, a bankruptcy flag can appear on an individual's credit report
 for up to 10 years after the filing. The flag affects an individual's
 credit score, and in turn, an individual's access to credit. In this
 article, we investigate how the bankruptcy flag affects access to credit
 along three dimensions-loan acceptance, the price of the loan as is
 determined by the interest rate, and the amount of credit the household
 receives. Using the Panel Study of Income Dynamics and the Survey of
 Consumer Finances, we estimate a series of two-stage models corrected for
 sample selection and adjusted to account for the household's level of
 creditworthiness. We find that the bankruptcy flag increases the
 probability of being denied access to a loan. The flag also increases
 interest rates for unsecured loans and lowers the credit limits available
 to households. The findings have important implications with respect to
 current bankruptcy code and the impact that information, such as the
 bankruptcy flag, can have on the efficiency of the credit markets. 
Journal: Applied Economics 
Pages: 3175-3193 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112331 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112331 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3175-3193




Template-Type: ReDIF-Article 1.0
Author-Name: Evis Sinani 
Author-X-Name-First: Evis 
Author-X-Name-Last: Sinani 
Author-Name: Bersant Hobdari 
Author-X-Name-First: Bersant 
Author-X-Name-Last: Hobdari 
Title: Export market participation with sunk costs and firm heterogeneity 
Abstract:
  In this article we investigate the importance of sunk costs, firm
 characteristics and spillovers from nearby exporters on a firm's decision
 to participate in exporting. The empirical analysis involves the
 estimation of a nonstructural, discrete choice, dynamic model with firm
 heterogeneity. By using panel data for Estonian companies from 1994 to
 1999 we find that: (i) both sunk costs and observable firm characteristics
 are important determinants of export market participation; (ii) previous
 history matters, in that, if a firm has been exporting the previous period
 or the period before, it significantly increases the likelihood of the
 firm exporting in the current period; (iii) larger firms with high capital
 intensity and foreign ownership are more likely to be exporters; (iv)
 operating in an export-oriented industry increases a firm's likelihood of
 exporting. 
Journal: Applied Economics 
Pages: 3195-3207 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112372 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3195-3207




Template-Type: ReDIF-Article 1.0
Author-Name: Bas Jacobs 
Author-X-Name-First: Bas 
Author-X-Name-Last: Jacobs 
Author-Name: Ruud de Mooij 
Author-X-Name-First: Ruud 
Author-X-Name-Last: de Mooij 
Author-Name: Kees Folmer 
Author-X-Name-First: Kees 
Author-X-Name-Last: Folmer 
Title: Flat income taxation, redistribution and labour market performance 
Abstract:
  A flat tax rate on labour income has gained popularity in European
 countries. This article assesses the attractiveness of such a flat tax in
 achieving redistributive objectives with the smallest distortions to
 employment. We do so by using a detailed applied general equilibrium model
 for the Netherlands. The model is empirically grounded in the data and
 encompasses decisions on hours worked, labour force participation, skill
 formation, wage bargaining between unions and firms and a wide variety of
 institutional details. The simulations suggest that the replacement of the
 current tax system in the Netherlands by a flat rate will harm labour
 market performance if aggregate income inequality is contained. Only flat
 tax reforms that reduce redistribution will raise employment. This finding
 bolsters the notions from optimal tax literature regarding the
 equity-efficiency trade off and the superiority of nonlinear taxes to
 obtain redistributive goals in an efficient way. 
Journal: Applied Economics 
Pages: 3209-3220 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112356 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112356 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3209-3220




Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya 
Author-X-Name-First: Mita 
Author-X-Name-Last: Bhattacharya 
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Labour productivity trends in Australian manufacturing: some time series properties 
Abstract:
  Labour productivity plays a significant role in economic growth, labour
 demand and employment situation of a particular economy. In this light,
 the presence of a structural break in productivity, and its unit root
 property, has important consequences for the overall economy and in major
 sectors such as manufacturing. In this article, using some recently
 developed unit root tests, we examine: (i) the null hypothesis of a unit
 root in the log-level of labour productivity for 38 manufacturing
 subdivisions against the alternative of trend stationarity over a
 three-decade period; and (ii) the presence of a structural break in the
 series, and whether the break has had a permanent or a transitory effect
 on manufacturing labour productivity. Our main finding is that shocks to
 labour productivity have had a transitory effect, implying that policies
 are likely to have only short-term effects. 
Journal: Applied Economics 
Pages: 3221-3230 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840801982692 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801982692 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3221-3230




Template-Type: ReDIF-Article 1.0
Author-Name: John McDonald 
Author-X-Name-First: John 
Author-X-Name-Last: McDonald 
Title: Efficiency in the Domesday economy, 1086: evidence from Wiltshire estates 
Abstract:
  It may surprise some readers that frontier methods such as Data
 Envelopment Analysis (DEA) can be used to assess the productive efficiency
 of the estates of eleventh century England. This is possible because in
 1086, William the Conqueror carried out a comprehensive survey (the
 Domesday Survey) of lands he invaded 20 years earlier. The survey provides
 high-quality data on the inputs and outputs of most manors in England. A
 previous analysis of the data for Essex estates indicated that the average
 efficiency of the Domesday agricultural economy was comparable to, if not
 higher than that for more modern economies, that some tenants-in-chief
 displayed significantly more entrepreneurial flair than others, and that
 the geographical location, the size of the estate and the arable/livestock
 mix all significantly affected estate efficiency. In this article,
 analysis of a second Domesday county, Wiltshire, confirms the general
 results for Essex, but indicates some differences in the factors affecting
 estate efficiency. 
Journal: Applied Economics 
Pages: 3231-3240 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112430 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112430 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3231-3240




Template-Type: ReDIF-Article 1.0
Author-Name: Peijie Wang 
Author-X-Name-First: Peijie 
Author-X-Name-Last: Wang 
Title: An examination of business cycle features in UK Sectoral Output 
Abstract:
  This article examines business cycle features of UK Gross Domestic
 Product (GDP) sectors with regard to trends, cycles and growth. The
 empirical study adopts the Kalman filter to decompose these GDP sectors
 into trend and cycle components. The general model of this study
 encompasses a number of alternative specifications about trend growth,
 therefore accommodating diverse views on growth. There is reasonable
 support in the results for a mean-reverting stochastic growth model for
 the UK economy. The characteristics in trends and cycles of UK GDP sectors
 are discussed, focusing on their similarities and differences around
 business cycles. 
Journal: Applied Economics 
Pages: 3241-3252 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802599818 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599818 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3241-3252




Template-Type: ReDIF-Article 1.0
Author-Name: Hyun Joung Jin 
Author-X-Name-First: Hyun Joung 
Author-X-Name-Last: Jin 
Author-Name: Dragan Miljkovic 
Author-X-Name-First: Dragan 
Author-X-Name-Last: Miljkovic 
Title: An analysis of multiple structural breaks in US relative farm prices 
Abstract:
  The movement of farm prices relative to other commodity prices is
 analysed for the period 1913:01 to 2003:12, investigating the number and
 time of structural breaks and discussing likely causes of structural
 breaks in the relative farm prices. Bai and Perron's (1998, 2003) multiple
 structural change test with a dynamic programming algorithm is used. This
 test makes it possible to have an efficient computation of the estimates
 of the break points as global minimizers of the sum of squared residuals.
 We find six structural breaks when we consider only the mean process and
 two breaks when we consider the mean and autoregressive processes.
 Possible causes for these breaks are discussed. 
Journal: Applied Economics 
Pages: 3253-3265 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802600368 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600368 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3253-3265




Template-Type: ReDIF-Article 1.0
Author-Name: Carluccio Bianchi 
Author-X-Name-First: Carluccio 
Author-X-Name-Last: Bianchi 
Author-Name: Alessandro Carta 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Carta 
Author-Name: Dean Fantazzini 
Author-X-Name-First: Dean 
Author-X-Name-Last: Fantazzini 
Author-Name: Maria Elena De Giuli 
Author-X-Name-First: Maria Elena 
Author-X-Name-Last: De Giuli 
Author-Name: Mario Maggi 
Author-X-Name-First: Mario 
Author-X-Name-Last: Maggi 
Title: A copula-VAR-X approach for industrial production modelling and forecasting 
Abstract:
  World economies, and especially European ones, have become strongly
 interconnected in the last decade and a joint modelling is required. We
 propose here the use of copulae to build flexible multivariate
 distributions, since they allow for a rich dependence structure and more
 flexible marginal distributions that better fit the features of empirical
 data, such as leptokurtosis. We use our approach to forecast industrial
 production series in the core European Monetary Union (EMU) countries and
 we provide evidence that the copula-Vector Autoregression (VAR) model
 outperforms or at worst compares similarly to normal VAR models, keeping
 the same computational tractability of the latter approach. 
Journal: Applied Economics 
Pages: 3267-3277 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112349 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112349 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3267-3277




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Benczur 
Author-X-Name-First: Peter 
Author-X-Name-Last: Benczur 
Author-Name: Attila Ratfai 
Author-X-Name-First: Attila 
Author-X-Name-Last: Ratfai 
Title: Economic fluctuations in Central and Eastern Europe: the facts 
Abstract:
  This article provides a detailed empirical analysis of quarterly
 frequency dynamics in macroeconomic aggregates in 12 countries of Central
 and Eastern Europe (CEE). It shows that business fluctuations in CEE
 countries are, in general, more pronounced than in developed ones, and are
 of similar size as in other emerging market economies. Private consumption
 is particularly volatile. Relative to major developed economies government
 spending is dominantly procyclical, and net exports are strongly
 countercyclical. The most frequent country outliers are the high inflation
 countries of Bulgaria, Romania and Russia, especially in labour market,
 price and exchange rate variables. Excluding these countries from the
 sample makes many of the observed patterns in cyclical dynamics more
 homogenous, and broadly similar to ones established in developed
 economies. 
Journal: Applied Economics 
Pages: 3279-3292 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112380 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112380 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3279-3292




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Modelling money demand for a panel of eight transitional economies 
Abstract:
  In this article, we estimate money demand functions for a panel of eight
 transitional economies, using quarterly data for the period 1995:01 1995
 to 2005:03. We find that real M1 and real M2 and their determinants,
 namely real income and short-term domestic interest rate, are
 cointegrated, both for individual countries as well as for the panel.
 Long-run elasticities suggest that consistent with theory, real income
 positively and nominal interest rate negatively impact real money demand.
 Our test for panel Granger causality suggests short-run bidirectional
 causality between M1 and M2 and their determinants. Finally, our tests for
 stability of the money demand functions reveal more cases of unstable
 money demand functions when M2 is used as a proxy for money demand. 
Journal: Applied Economics 
Pages: 3293-3305 
Issue: 25 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112323 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112323 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3293-3305




Template-Type: ReDIF-Article 1.0
Author-Name: Sahar Bahmani 
Author-X-Name-First: Sahar 
Author-X-Name-Last: Bahmani 
Author-Name: Ali Kutan 
Author-X-Name-First: Ali 
Author-X-Name-Last: Kutan 
Title: How stable is the demand for money in emerging economies? 
Abstract:
  One of the key elements of implementing the monetary policy is stability
 of the demand for money. The literature includes a large number of studies
 that have tested the stability of the money demand in developed as well as
 less-developed countries but not in emerging economies of Eastern Europe.
 As market-based data becomes available from these countries, there is an
 urgency to test old theories for these modern market-oriented economies.
 In this article we consider the experiences of Armenia, Bulgaria, the
 Czech Republic, Hungary, Poland, Russia and the Slovak Republic. Using the
 bounds testing approach to error-correction modelling and cointegration,
 we show that money demand is stable in these countries. 
Journal: Applied Economics 
Pages: 3307-3318 
Issue: 26 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112406 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112406 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3307-3318




Template-Type: ReDIF-Article 1.0
Author-Name: Augustin de Coulon 
Author-X-Name-First: Augustin 
Author-X-Name-Last: de Coulon 
Author-Name: Francois-Charles Wolff 
Author-X-Name-First: Francois-Charles 
Author-X-Name-Last: Wolff 
Title: Location intentions of immigrants at retirement: stay/return or go 'back and forth'? 
Abstract:
  This article analyses the intentions of immigrants regarding their
 residential choice after retirement. Three options are investigated: stay
 in the host country, go back to the origin country and adopt a mobile
 strategy, sharing time between the host and the origin country (defined as
 'back and forth'). For this purpose, we analyse a cross section of
 non-French nationals aged above 45 who are not yet retired. The impacts of
 several potential determinants of such intentions are investigated, with
 particular focus on the effect of the actual location of the respondents'
 children. The estimation is conducted using a multinomial Logit model.
 Instrumental variable technique is used to address the issue of endogenous
 children's location with respect to parents' location intention. Results
 suggest that the immigrants prefer to return rather than stay in the host
 country when their children live in the country of origin. However,
 children's location does not seem to affect the 'back and forth' strategy
 with respect to staying in the host country. 
Journal: Applied Economics 
Pages: 3319-3333 
Issue: 26 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036846.2010.482518 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.482518 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3319-3333




Template-Type: ReDIF-Article 1.0
Author-Name: Duncan McVicar 
Author-X-Name-First: Duncan 
Author-X-Name-Last: McVicar 
Author-Name: Michael Anyadike-Danes 
Author-X-Name-First: Michael 
Author-X-Name-Last: Anyadike-Danes 
Title: Panel estimates of the determinants of British regional male incapacity benefits rolls 1998-2006 
Abstract:
  This article explores the determinants of the proportion of the working
 age male population claiming Incapacity Benefits (IB), across the 11
 British Government Office Regions, for the period 1998 to 2006. Three
 different approaches are adopted to modelling register dynamics: first,
 treating IB stocks as if they were trend-stationary, albeit with
 persistence, and estimating reduced form models for their logs; second,
 treating IB stocks as if they were nonstationary and examining their
 long-run determinants plus short-run equilibrium reversion properties;
 third, focusing on the determinants of gross inflows and outflows that
 together drive IB stocks. Given the nature of the data, no approach is
 ideal yet the models provide reasonably robust evidence that labour market
 changes-specifically falling unemployment rates and rising real
 earnings-have contributed to falling male IB stocks over the period. 
Journal: Applied Economics 
Pages: 3335-3349 
Issue: 26 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112414 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112414 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3335-3349




Template-Type: ReDIF-Article 1.0
Author-Name: Niels Hermes 
Author-X-Name-First: Niels 
Author-X-Name-Last: Hermes 
Author-Name: Vu Thi Hong Nhung 
Author-X-Name-First: Vu Thi Hong 
Author-X-Name-Last: Nhung 
Title: The impact of financial liberalization on bank efficiency: evidence from Latin America and Asia 
Abstract:
  This article investigates the impact of financial liberalization on bank
 efficiency, using data for a sample of over 4000 bank-year observations
 from ten emerging economies for the period 1991-2000. We use Data
 Envelopment Analysis (DEA) to calculate bank efficiency at the individual
 bank level. Bank efficiency measures are then aggregated at the country
 level to investigate the relationship between financial liberalization and
 bank efficiency, using a panel least square fixed-effects model. Overall,
 we find strong support for the positive impact of financial liberalization
 programmes on bank efficiency. 
Journal: Applied Economics 
Pages: 3351-3365 
Issue: 26 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112448 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112448 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3351-3365




Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Nunley 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Nunley 
Title: Inflation and other aggregate determinants of the trend in US divorce rates since the 1960s 
Abstract:
  This article extends empirical research on the determinants of divorce in
 two ways. First, I examine the effect of inflation on divorce. Second, the
 use of a structural time-series modelling approach attributes
 unobservables and omitted variables to an unobserved component, which
 allows for the model's parameters to be estimated consistently. Inflation
 is statistically significant, positive and persistent. I show that the
 effects of inflation are robust to the inclusion of additional explanatory
 variables and various trend specifications. The long-run implications of
 inflation are also substantial. I conclude that price stability has the
 potential to reduce divorce rates. 
Journal: Applied Economics 
Pages: 3367-3381 
Issue: 26 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112489 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112489 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3367-3381




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Naticchioni 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Naticchioni 
Author-Name: Andrea Ricci 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Ricci 
Author-Name: Emiliano Rustichelli 
Author-X-Name-First: Emiliano 
Author-X-Name-Last: Rustichelli 
Title: Far away from a skill-biased change: falling educational wage premia in Italy 
Abstract:
  In this article we apply quantile regressions to investigate the
 evolution of Educational Wage Premia (EWP) in Italy from 1993 to 2004.
 Using the Survey of the Household Income and Wealth (SHIW, Bank of Italy)
 and different classifications for educational attainments, we show that,
 in the private sector, EWP have generally decreased over time, considering
 both continuous and categorical specifications for education, at all
 quantiles of the wage distribution. Different patterns are observed in the
 public sector, where EWP remain basically stable over time. A number of
 robustness checks and various econometric specifications are also applied
 in order to address sample selection issues. Our findings provide
 additional evidence in favour of the thesis that the increasing patterns
 in inequality and EWP, and the related interpretations concerning
 skill-biased changes, are much less pronounced in continental Europe than
 in Anglo-Saxon countries. 
Journal: Applied Economics 
Pages: 3383-3400 
Issue: 26 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112455 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112455 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3383-3400




Template-Type: ReDIF-Article 1.0
Author-Name: Noriko Inakura 
Author-X-Name-First: Noriko 
Author-X-Name-Last: Inakura 
Author-Name: Satoshi Shimizutani 
Author-X-Name-First: Satoshi 
Author-X-Name-Last: Shimizutani 
Title: Deposit insurance and depositor discipline: direct evidence on bank switching behaviour in Japan 
Abstract:
  As Japan's financial system becomes more market oriented, depositor
 discipline is playing a larger role in the monitoring of banks. Matching
 household survey data with banks' financial data, we examine households'
 response to bank risk and different deposit insurance schemes. We find
 that bank switching in response to risk increased between 1996 and 2001
 and households' choice of bank adequately reflects banks' financial
 health. We also examine the determinants of households' knowledge of the
 deposit insurance scheme and how this affects switching behaviour. The
 results suggest that depositor discipline works and could play an
 important supplementary role in bank monitoring. 
Journal: Applied Economics 
Pages: 3401-3415 
Issue: 26 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112398 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112398 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3401-3415




Template-Type: ReDIF-Article 1.0
Author-Name: Ku-Hsieh (Michael) Chen 
Author-X-Name-First: Ku-Hsieh 
Author-X-Name-Last: (Michael) Chen 
Author-Name: Ho-Ming Hsiao 
Author-X-Name-First: Ho-Ming 
Author-X-Name-Last: Hsiao 
Author-Name: Hao-Yen Yang 
Author-X-Name-First: Hao-Yen 
Author-X-Name-Last: Yang 
Title: Spillover effects of innovation: Taiwanese evidence 
Abstract:
  This article evaluates spillover effects of innovation of Taiwan's
 industries by using the input-output (IO) analysis framework. On the basis
 of IO tables for the years 1981, 1986 1991 and 1996, the structure,
 magnitude and ranking list of the spillover effect of innovation are
 revealed. Additionally, several findings are also achieved from the
 empirical results. First, the spillover effect of process innovation is
 stronger and about more than twice the spillover effect of product
 innovation in Taiwan. Furthermore, Taiwan's industries manifest a
 dispersive technological distribution structure and the spillover effect
 of the process innovation is more dispersive than that of product
 innovation. Moreover, Taiwanese industries are rather dependent on foreign
 technologies, particularly in terms of product innovation. 
Journal: Applied Economics 
Pages: 3417-3437 
Issue: 26 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112422 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112422 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3417-3437




Template-Type: ReDIF-Article 1.0
Author-Name: P. S. Sephton 
Author-X-Name-First: P. S. 
Author-X-Name-Last: Sephton 
Title: Unit roots and purchasing power parity: another kick at the can 
Abstract:
  Lopez et al. (2005) demonstrated that single-equation unit-root tests
 cannot provide conclusive evidence of whether real exchange rates are
 stationary because inference depends critically on the lag-lengths used to
 construct the test statistics, a result reinforced by a recent work by
 Sweeney (2006). The purpose of this article is to revisit the issue, first
 demonstrating the necessary conditions under which this approach of
 testing for Purchasing Power Parity (PPP) is appropriate. 
Journal: Applied Economics 
Pages: 3439-3453 
Issue: 27 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112513 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112513 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3439-3453




Template-Type: ReDIF-Article 1.0
Author-Name: Carlo Altavilla 
Author-X-Name-First: Carlo 
Author-X-Name-Last: Altavilla 
Author-Name: Paul De Grauwe 
Author-X-Name-First: Paul 
Author-X-Name-Last: De Grauwe 
Title: Forecasting and combining competing models of exchange rate determination 
Abstract:
  This article investigates the out-of-sample forecast performance of a set
 of competing models of exchange rate determination. We compare standard
 linear models with models that characterize the relationship between
 exchange rate and the underlying fundamentals by nonlinear dynamics.
 Linear models tend to outperform at short forecast horizons especially
 when deviations from long-term equilibrium are small. In contrast,
 nonlinear models with more elaborate mean-reverting components dominate at
 longer horizons especially when deviations from long-term equilibrium are
 large. The results also suggest that combining different forecasting
 procedures generally produces more accurate forecasts than can be attained
 from a single model. 
Journal: Applied Economics 
Pages: 3455-3480 
Issue: 27 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112505 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112505 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3455-3480




Template-Type: ReDIF-Article 1.0
Author-Name: Mina Baliamoune-Lutz 
Author-X-Name-First: Mina 
Author-X-Name-Last: Baliamoune-Lutz 
Title: Black and official exchange rates in Morocco: an analysis of their long-run behaviour and short-run dynamics (1974-1992) 
Abstract:
  Using Vector Error-Correction (VEC) model estimation on monthly data from
 Morocco for the period January 1974 to December 1992, this article tests
 the hypothesis that there is a long-run stable relationship between the
 official and the black-market exchange rates for US dollars. We also
 examine the short-run dynamics in the relationship between the two
 markets. The econometric results indicate that the two exchange rates are
 cointegrated. Furthermore, we reject weak exogeneity in the case of the
 official exchange rate, but fail to reject it in the case of the
 black-market rate. Granger causality tests show that the black-market rate
 causes the official exchange rate. The results seem to support the
 efficiency hypothesis, suggesting that participants in the black-market
 are able to anticipate changes in the official exchange rate. The findings
 also suggest that Morocco's decision (in January 1993) to introduce only
 current account convertibility and keep controls on capital accounts was
 wise. 
Journal: Applied Economics 
Pages: 3481-3490 
Issue: 27 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112463 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112463 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3481-3490




Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Chi Cheng 
Author-X-Name-First: Jen-Chi 
Author-X-Name-Last: Cheng 
Author-Name: Larry Taylor 
Author-X-Name-First: Larry 
Author-X-Name-Last: Taylor 
Author-Name: Wenlong Weng 
Author-X-Name-First: Wenlong 
Author-X-Name-Last: Weng 
Title: The links between international parity conditions and Granger causality: a study of exchange rates and prices 
Abstract:
  This article investigates Granger causality between exchange rates and
 prices for the US and four of its trading partners: Canada, Germany, Japan
 and the UK. We emphasize the distinction between direct and indirect
 Granger causality: exchange rates directly cause prices if movements in
 exchange rates lead movement in prices, and exchange rates indirectly
 cause prices if deviations from the Purchasing Power Parity (PPP)
 condition can help forecast movement in prices. But only by including the
 interest-rate differential in our error correction model do we obtain
 results that align with economic theory. The economic theory of PPP
 suggests that exchange rates and prices are cointegrated, with exchange
 rates moving proportionally to prices in the long run. In general, we find
 either direct or indirect feedback mechanisms between exchange rates and
 prices. 
Journal: Applied Economics 
Pages: 3491-3501 
Issue: 27 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112521 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112521 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3491-3501




Template-Type: ReDIF-Article 1.0
Author-Name: Raul Serrano 
Author-X-Name-First: Raul 
Author-X-Name-Last: Serrano 
Author-Name: Vicente Pinilla 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Pinilla 
Title: Causes of world trade growth in agricultural and food products, 1951-2000: a demand function approach 
Abstract:
  The objective of the present study is to analyse the causes of the growth
 of international agricultural and food trade in volume terms from 1951 to
 2000. The results suggest that income growth has been the principal reason
 for this expansion, while exchange rate stability and the real price of
 agricultural products played only a minor role. Multilateral trade
 liberalization and trade costs, given their long-term stability, are not
 elements that could have stimulated their growth. Finally, the intensive
 liberalization of trade which took place in various economic regions,
 especially in Europe, became a key factor in promoting agricultural trade
 among the countries participating in regional trade agreements. The study
 results also indicate that the determinants of trade growth for these
 goods were different to those for other goods and other periods. 
Journal: Applied Economics 
Pages: 3503-3518 
Issue: 27 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802167368 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167368 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3503-3518




Template-Type: ReDIF-Article 1.0
Author-Name: Truong Dong Loc 
Author-X-Name-First: Truong 
Author-X-Name-Last: Dong Loc 
Author-Name: Ger Lanjouw 
Author-X-Name-First: Ger 
Author-X-Name-Last: Lanjouw 
Author-Name: Robert Lensink 
Author-X-Name-First: Robert 
Author-X-Name-Last: Lensink 
Title: Stock-market efficiency in thin-trading markets: the case of the Vietnamese stock market 
Abstract:
  This article reviews developments in the Stock Trading Centre (STC) in Ho
 Chi Minh City, Vietnam, the main stock market in the country, since its
 start in 2000. It presents information about developments in the number of
 stocks traded, trading activity and stock-price developments. This article
 focuses on the question whether the market is weak-form efficient. An
 important element of the investigation concerns the possible bias of the
 results caused by the thin trading that characterizes the STC.
 Stock-market returns are corrected for this. The main conclusion is that
 the STC is not efficient in the weak form. 
Journal: Applied Economics 
Pages: 3519-3532 
Issue: 27 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802167350 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167350 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3519-3532




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Morales 
Author-X-Name-First: Marco 
Author-X-Name-Last: Morales 
Title: The real yield curve and macroeconomic factors in the Chilean economy 
Abstract:
  This article estimates a dynamic model for the yield curve incorporating
 latent and macro factors to represent the term structure of the real
 interest rates. The representation of the yield curve is based on the
 popular latent factor model of Nelson and Siegel (1987), but under a
 dynamic interpretation due to Diebold and Li (2006). After assuming the
 data generating process for the latent and macro factors can be
 represented by a VAR process, the yields-macro model can be regarded as a
 state-space representation and estimated by a Kalman Filter approach or by
 using a simplified two-step procedure proposed by Diebold and Li (2006).
 This article follows the simple two-step method and makes a comparison
 check with the Kalman Filter estimation, concluding that the basic
 intuition of the results is not significantly affected by the use of the
 simplified approach. Estimation results give support to the dynamic
 interaction between yield curve latent factors and macroeconomic
 variables. In particular, monetary policy implemented by the Central Bank
 seems to be influenced by the market players given the significant
 response of the monetary policy rate to the yield curve factors as shown
 by impulse-response functions. In addition, the level and slope of the
 yield curve seems to be responsive to real activity and monetary policy
 shocks, issues that should be considered by monetary authorities given the
 dependency of monetary policy effectiveness on the shape of the yield
 curve. 
Journal: Applied Economics 
Pages: 3533-3545 
Issue: 27 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802129806 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802129806 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3533-3545




Template-Type: ReDIF-Article 1.0
Author-Name: A. Assaf 
Author-X-Name-First: A. 
Author-X-Name-Last: Assaf 
Author-Name: K. M. Matawie 
Author-X-Name-First: K. M. 
Author-X-Name-Last: Matawie 
Title: Improving the accuracy of DEA efficiency analysis: a bootstrap application to the health care foodservice industry 
Abstract:
  This article analyses the efficiency of health care foodservice
 operations and its determinants using a Data Envelopment Analysis (DEA)
 bootstrapping approach. The purpose of using the bootstrapping approach is
 two-fold: first, to obtain the bias corrected estimates and the confidence
 intervals of DEA-efficiency scores and second, to overcome the correlation
 problem of DEA-efficiency scores and to provide consistent inferences in
 explaining the determinants of health care foodservice efficiency. The
 approach was implemented on a sample of 89 health care foodservice
 operations. The results showed the presence of inefficiency in the sample,
 with an average efficiency level of 72.6%. Further, the results from
 analysing the determinants of health care foodservice operations provided
 policy implication regarding the factors that might improve the efficiency
 of health care foodservice operations. 
Journal: Applied Economics 
Pages: 3547-3558 
Issue: 27 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112497 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112497 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3547-3558




Template-Type: ReDIF-Article 1.0
Author-Name: H. Levent Korap 
Author-X-Name-First: H. 
Author-X-Name-Last: Levent Korap 
Author-Name: Ozgur Aslan 
Author-X-Name-First: Ozgur 
Author-X-Name-Last: Aslan 
Title: Re-examination of the long-run purchasing power parity: further evidence from Turkey 
Abstract:
  In this article, we re-examine the empirical validity of the Purchasing
 Power Parity (PPP) theory for the Turkish economy. For this purpose, an
 empirical model is constructed using some contemporaneous estimation
 techniques such as multivariate co-integration and vector error correction
 methodology. Our estimation results reveal that the PPP can strongly be
 supported as a long-run stationary steady-state relationship for the
 Turkish economy. 
Journal: Applied Economics 
Pages: 3559-3564 
Issue: 27 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802129798 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802129798 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3559-3564




Template-Type: ReDIF-Article 1.0
Author-Name: Nazmul Chaudhury 
Author-X-Name-First: Nazmul 
Author-X-Name-Last: Chaudhury 
Author-Name: Dilip Parajuli 
Author-X-Name-First: Dilip 
Author-X-Name-Last: Parajuli 
Title: Conditional cash transfers and female schooling: the impact of the female school stipend programme on public school enrolments in Punjab, Pakistan 
Abstract:
  Instead of mean-tested Conditional Cash Transfer (CCT) programmes, some
 countries have implemented gender-targeted CCTs to explicitly address
 intra-household disparities in human capital investments. This study
 focuses on addressing the direct impact of a female school stipend
 programme in Punjab, Pakistan - Did the intervention increase female
 enrolment in public schools? To address this question, we draw upon data
 from the provincial school censuses 2003 and 2005. We estimate the net
 growth in female enrolments in grade 6-8 in stipend eligible schools.
 Impact evaluation analysis, including difference-and-difference (DD),
 triple differencing (DDD) and regression-discontinuity design (RDD),
 indicate a modest but statistically significant impact of the
 intervention. The preferred estimator derived from a combination of DDD
 and RDD empirical strategies suggests that the average programme impact
 between 2003 and 2005 was an increase of six female students per school in
 terms of absolute change and an increase of 9% in female enrolment in
 terms of relative change. A triangulation effort is also undertaken using
 two rounds of a nationally representative household survey before and
 after the intervention. Even though the surveys are not representative at
 the sub-provincial level, the results corroborate evidence of the impact
 using school census data. 
Journal: Applied Economics 
Pages: 3565-3583 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802167376 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167376 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3565-3583




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Alan Edwards 
Author-X-Name-First: Jeffrey Alan 
Author-X-Name-Last: Edwards 
Author-Name: Ronald Gilbert 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Gilbert 
Author-Name: Juan Sherwell 
Author-X-Name-First: Juan 
Author-X-Name-Last: Sherwell 
Title: Accounting for regional variance heterogeneity of growth 
Abstract:
  This article explores heterogeneous behaviour in the conditional variance
 of growth. We find that regional effects account for a good part of this
 behaviour when modelled alone; however, regional effects themselves have
 no particular meaning. To this end, we try to empirically account for the
 regional effects using a large set of economic, political and demographic
 variables. Our results indicate that countries with past high levels of
 both investment and inflation cause growth to be less volatile today.
 Countries that have a greater number of changes in heads of government
 tend to experience lower growth volatility except in parliamentary
 democracies where the relationship reverses. The greater the number of
 effective parties the lower the volatility for all regime types. More
 strikes have no effect on volatility except for presidential democracies
 where volatility actually increases, while more open economies that share
 presidential and legislative powers also have more volatile growth rates. 
Journal: Applied Economics 
Pages: 3585-3596 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802260924 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260924 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3585-3596




Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Lopez-Pueyo 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Lopez-Pueyo 
Author-Name: Jaime Sanau 
Author-X-Name-First: Jaime 
Author-X-Name-Last: Sanau 
Title: How different are the production functions of the European manufacturing sectors? New empirical evidence 
Abstract:
  The neo-classical model of international trade assumes that the Total
 Factor Productivity (TFP) of a sector is common across countries, that
 returns to scale are constant and that the sectoral production of the
 countries differs by virtue of the factor endowments. In this article, we
 consider whether the differences in production can also be explained by
 the economies of scale in the national industries and by the technological
 differences across countries. To test this hypothesis, we estimate three
 models proposed in Harrigan (1999) with data for eight European Union (EU)
 Member States covering the period 1978 to 1992 and analyse how the TFP
 changes from country to country. 
Journal: Applied Economics 
Pages: 3597-3605 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802260965 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260965 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3597-3605




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Garcia 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Garcia 
Author-Name: Jose-Alberto Molina 
Author-X-Name-First: Jose-Alberto 
Author-X-Name-Last: Molina 
Author-Name: Maria Navarro 
Author-X-Name-First: Maria 
Author-X-Name-Last: Navarro 
Title: The effects of education on spouses' satisfaction in Europe 
Abstract:
  This article identifies the effects of both own and spouses' education
 levels on individual economic satisfaction for European households. To
 that end, it estimates several specifications based on the family
 collective approach, for each of the 14 EU countries, by using the eight
 waves of the European Community Household Panel, 1994-2001. After
 demonstrating that the IV Hausman-Taylor procedure is the selected
 estimation method in the majority of cases, the empirical results show
 that male and female income satisfaction significantly increases when the
 husband achieves higher education qualifications in the majority of
 European countries. However, the positive effect of the wife's higher
 education on female income satisfaction only appears in a very limited
 number of countries. Additionally, increases in individual wage and
 nonwage incomes generally lead to higher satisfaction levels. 
Journal: Applied Economics 
Pages: 3607-3618 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802314572 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314572 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3607-3618




Template-Type: ReDIF-Article 1.0
Author-Name: Arif Sultan 
Author-X-Name-First: Arif 
Author-X-Name-Last: Sultan 
Title: A model of the used car market with lemons and leasing 
Abstract:
  This article extends Kim's (1985) model of the used car market with
 asymmetric information to examine the possible impacts of leasing and
 Certified Pre-Owned (CPO) programs on the average quality of traded used
 cars in the market. The author assumed that a consumer can buy or lease a
 new car, or he/she can buy a used or a CPO car. While, like Kim (1985),
 the author assumed that the quality of a car depends on the maintenance
 level, the maintenance level in this model is chosen when a car is still a
 'new' car, i.e. after the warranty ends. The model implied that the
 average quality of traded used cars can be either higher or lower than the
 average quality of nontraded used cars. The study also found that leasing
 and CPO have substantially improved the information mechanism between
 buyers and sellers of used cars, which, in turn, has helped reduce adverse
 selection and improved the average quality of traded used cars in the
 market. 
Journal: Applied Economics 
Pages: 3619-3627 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802314556 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314556 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3619-3627




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon 
Author-X-Name-First: Robert 
Author-X-Name-Last: Dixon 
Author-Name: David Shepherd 
Author-X-Name-First: David 
Author-X-Name-Last: Shepherd 
Title: Models of labour services and estimates of total factor productivity 
Abstract:
  This article examines the manner in which labour services are modelled in
 the aggregate production function, concentrating on the relationship
 between numbers employed and average hours worked. It argues that numbers
 employed and hours worked are not perfect substitutes and that
 conventional estimates of total factor productivity which, by using total
 hours worked as the measure of labour services, assume they are perfect
 substitutes, will be biased when there are marked changes in average hours
 worked. The relevance of the theoretical argument is illustrated using
 data for the United States and the United Kingdom. 
Journal: Applied Economics 
Pages: 3629-3634 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802314549 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314549 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3629-3634




Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Buch 
Author-X-Name-First: Claudia 
Author-X-Name-Last: Buch 
Author-Name: Serkan Yener 
Author-X-Name-First: Serkan 
Author-X-Name-Last: Yener 
Title: Consumption volatility and financial openness 
Abstract:
  Economic theory predicts that the integration of financial markets lowers
 the volatility of consumption. In this article, we study long-term trends
 in the consumption volatility of the G7 countries. Using different
 measures of financial openness, we find evidence that greater financial
 openness has been associated with lower consumption volatility. However,
 volatility of consumption relative to output has not declined. 
Journal: Applied Economics 
Pages: 3635-3649 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802260916 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3635-3649




Template-Type: ReDIF-Article 1.0
Author-Name: Rinaldo Brau 
Author-X-Name-First: Rinaldo 
Author-X-Name-Last: Brau 
Author-Name: Matteo Lippi Bruni 
Author-X-Name-First: Matteo 
Author-X-Name-Last: Lippi Bruni 
Author-Name: Anna Maria Pinna 
Author-X-Name-First: Anna Maria 
Author-X-Name-Last: Pinna 
Title: Public versus private demand for covering long-term care expenditures 
Abstract:
  This article studies the determinants of the Willingness to Pay (WTP) for
 Long-Term Care (LTC) insurance coverage. Two alternatives are considered:
 one compulsory, financed through taxes, the other purchased on a voluntary
 basis and paid through a premium. WTP was elicited through open-ended
 contingent valuation within a survey conducted in the Italian region
 Emilia-Romagna about LTC population needs. We model information on
 individual WTP as a two-stage process, where respondents first establish
 their interest for LTC cover, then state their WTP. Results show that
 interest and WTP are influenced by different variables, and that
 differences arise also between the WTP for public and private coverage. 
Journal: Applied Economics 
Pages: 3651-3668 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802167343 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167343 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3651-3668




Template-Type: ReDIF-Article 1.0
Author-Name: Tiziano Razzolini 
Author-X-Name-First: Tiziano 
Author-X-Name-Last: Razzolini 
Title: Study on labour supply when tax evasion is an option with Box-Cox functional forms and random parameters 
Abstract:
  Labour supply when tax evasion is an option is analysed within a discrete
 choice framework which incorporates random parameters and Box-Cox
 functional forms, using mixed logit models. Deviates in parameters and, in
 some cases, correlation between alternatives in the evasion group are
 found to be significant. The models utilized yield good predictions in
 terms of labour supply and taxes paid by nonevaders. The goodness-of-fit
 and quality of prediction is improved by the introduction of correlation
 between random coefficients. 
Journal: Applied Economics 
Pages: 3669-3684 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802243797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802243797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3669-3684




Template-Type: ReDIF-Article 1.0
Author-Name: Corrado Andini 
Author-X-Name-First: Corrado 
Author-X-Name-Last: Andini 
Title: Within-groups wage inequality and schooling: further evidence for Portugal 
Abstract:
  This article provides further evidence on the positive impact of
 schooling on within-groups wage dispersion in Portugal, using data on male
 workers from the 2001 wave of the European Community Household Panel. The
 issue of schooling endogeneity is taken into account by using the latest
 available instrumental-variable technique for quantile regression, i.e.
 the control-function estimator due to Lee (2007). The findings are
 compared with earlier results based on different techniques, i.e. the
 instrumental-variable estimator due to Arias et al. (2001) and the
 standard exogeneity-based estimator due to Koenker and Bassett (1978). 
Journal: Applied Economics 
Pages: 3685-3691 
Issue: 28 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802314564 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314564 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3685-3691




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Author-Name: Rup Singh 
Author-X-Name-First: Rup 
Author-X-Name-Last: Singh 
Title: Effects of trade openness on the steady-state growth rates of selected Asian countries with an extended exogenous growth model 
Abstract:
  The Solow (1956) growth model is extended with an endogenous growth
 framework to estimate the effects of trade openness on the Steady State
 Growth Rate (SSGR). Estimates of the augmented production functions are
 used to compute the SSGRs for Singapore, Malaysia, Hong Kong, India and
 Thailand. Good policies that increase the growth effects of openness is
 also tested with an interactive term. Our results show that Singapore has
 the highest SSGR of 2.75%, followed by Hong Kong and Thailand with 2.5%.
 India and Malaysia have lower SSGRs of 1.7% and 0.5%, respectively. 
Journal: Applied Economics 
Pages: 3693-3702 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802534468 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802534468 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3693-3702




Template-Type: ReDIF-Article 1.0
Author-Name: Johnnie Johnson 
Author-X-Name-First: Johnnie 
Author-X-Name-Last: Johnson 
Author-Name: Alistair Bruce 
Author-X-Name-First: Alistair 
Author-X-Name-Last: Bruce 
Author-Name: Jiejun Yu 
Author-X-Name-First: Jiejun 
Author-X-Name-Last: Yu 
Title: The ordinal efficiency of betting markets: an exploded logit approach 
Abstract:
  This article offers a new perspective on efficiency in betting markets by
 examining the degree to which finishing order in horse races corresponds
 to probabilities inherent in odds across different categories of horse
 race. The application of an exploded logit procedure reveals a
 significantly greater degree of ordinal efficiency in higher relative to
 lower-class races. Explanations for the phenomenon include differences in
 prize-related incentives, cross-market distinctions in information markets
 and differential opportunity/incentive for market manipulation. 
Journal: Applied Economics 
Pages: 3703-3709 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802314622 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314622 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3703-3709




Template-Type: ReDIF-Article 1.0
Author-Name: Miao Wang 
Author-X-Name-First: Miao 
Author-X-Name-Last: Wang 
Title: Foreign direct investment and domestic investment in the host country: evidence from panel study 
Abstract:
  This article examines the impact of inward Foreign Direct Investment
 (FDI) on host countries' domestic investment. Utilizing data from 50
 countries over the period of 1970 to 2004, we find that inward FDI has a
 negative contemporaneous effect on domestic investment, while the
 cumulative effect of FDI over time tends to be positive. In addition, we
 separately study FDI in Developed Countries (DCs) and Less Developed
 Countries (LDCs). The effect of contemporaneous FDI on domestic investment
 is negative in DCs, and the cumulative effect of FDI is neutral. Strong
 evidence suggests that the contemporaneous effect of FDI on domestic
 investment is neutral in LDCs, while the cumulative effect of FDI is
 positive. 
Journal: Applied Economics 
Pages: 3711-3721 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802314580 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3711-3721




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Bailey 
Author-X-Name-First: Mark 
Author-X-Name-Last: Bailey 
Author-Name: Vani Borooah 
Author-X-Name-First: Vani 
Author-X-Name-Last: Borooah 
Title: What enhances mathematical ability? A cross-country analysis based on test scores of 15-year-olds 
Abstract:
  This article examines the mathematical abilities of 15-year-olds in a
 range of countries which participated in the 2003 cycle of the
 Organization for Economic Cooperation and Development (OCED)'s Programme
 for International Student Assessment (PISA). Utilizing information on the
 scores obtained by individual students in the mathematical part of the
 PISA assessment, we use a range of indicators from the literature on
 inequality and poverty to evaluate the 'mathematical performance' of
 participating countries. Since data from PISA contained a wealth of
 information on the circumstances of the students in terms of their home
 and school environment, we identify and examine the relative influence of
 factors which serve to enhance the mathematical performance of students in
 the PISA assessment. 
Journal: Applied Economics 
Pages: 3723-3733 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802314598 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314598 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3723-3733




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Reboredo 
Author-X-Name-First: Juan 
Author-X-Name-Last: Reboredo 
Title: Nonlinear effects of oil shocks on stock returns: a Markov-switching approach 
Abstract:
  Using Markov-switching models, we investigate whether oil price shocks
 have nonlinear effects on stock returns. Empirical evidence from a set of
 international stock indexes suggests that an increase in oil prices has a
 negative and significant impact on stock prices in one state of the
 economy, whereas this effect is significantly dampened in another state of
 the economy. Furthermore, it is shown that changes in oil prices or in oil
 price volatility do not lead to a higher probability of switching between
 regimes. 
Journal: Applied Economics 
Pages: 3735-3744 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802314606 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314606 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3735-3744




Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Aiello 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Aiello 
Author-Name: Paola Cardamone 
Author-X-Name-First: Paola 
Author-X-Name-Last: Cardamone 
Author-Name: Maria Rosaria Agostino 
Author-X-Name-First: Maria Rosaria 
Author-X-Name-Last: Agostino 
Title: Evaluating the impact of nonreciprocal trade preferences using gravity models 
Abstract:
  This article presents new evidence on the impact of Nonreciprocal
 Preferential Trade Policies (NRPTPs) granted by developed countries to
 exports from developing countries over the period 1995 to 2003. The
 analysis has been carried out by using three levels of data aggregation.
 It accounts for unobservable heterogeneity, endogeneity of the
 preferential treatment and potential selection bias. We find a positive
 and significant impact of NRPTPs when considering total exports and total
 agricultural exports. However, at 2-digit agricultural level the results
 are heterogeneous. 
Journal: Applied Economics 
Pages: 3745-3760 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802314614 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314614 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3745-3760




Template-Type: ReDIF-Article 1.0
Author-Name: Nissim Ben David 
Author-X-Name-First: Nissim Ben 
Author-X-Name-Last: David 
Title: An iteration process for calculating labour market flows 
Abstract:
  This article presents a technique for calculating labour market flows,
 given labour market stocks of workers and nonemployed agents at the
 beginning and at the end of a certain period of time. I build a system of
 equations that define the stocks as a product of the flows. For a vector
 of stocks Y and a vector of flows X, the system of equations is defined as
 Y = A*X. However, the system is not solvable (the flows cannot be
 identified) due to singularity of the matrix A. I suggest an iteration
 process that enables us to solve the system and identify the flows given a
 chosen negligible deviation from the true flows. 
Journal: Applied Economics 
Pages: 3761-3766 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802359924 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802359924 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3761-3766




Template-Type: ReDIF-Article 1.0
Author-Name: Angie Hernandez 
Author-X-Name-First: Angie 
Author-X-Name-Last: Hernandez 
Author-Name: Jorge Dresdner 
Author-X-Name-First: Jorge 
Author-X-Name-Last: Dresdner 
Title: The effect of temporal closures and individual quotas on fishing trip duration: a hazard function analysis 
Abstract:
  In this article, we assess the effect that two different fishery
 management regimes have on the duration of the fishing trip. A basic
 theoretical model predicts that trip duration should increase with
 temporal closures and decrease with an individual quota system. Therefore,
 we propose and apply an empirical trip duration model. Estimations are
 based on data for the pelagic fleet in central-southern Chile. Conforming
 to the theoretical predictions, the results indicate that temporal
 closures tend to increase trip duration, whereas individual quotas reduce
 it. Moreover, the regulatory regimes also affect the magnitude of the
 impact that other determinants have on trip duration. The results are
 consistent with increased efficiency in fleet operation under an
 individual quota system. 
Journal: Applied Economics 
Pages: 3767-3776 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360096 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360096 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3767-3776




Template-Type: ReDIF-Article 1.0
Author-Name: M. Angeles Carnero 
Author-X-Name-First: M. Angeles 
Author-X-Name-Last: Carnero 
Author-Name: Blanca Martinez 
Author-X-Name-First: Blanca 
Author-X-Name-Last: Martinez 
Author-Name: Rocio Sanchez-Mangas 
Author-X-Name-First: Rocio 
Author-X-Name-Last: Sanchez-Mangas 
Title: Mobbing and its determinants: the case of Spain 
Abstract:
  The objective of this article is to analyse empirically the problem of
 mobbing in Spain. Based on the fifth Spanish survey on working conditions,
 we find that during 2003, around 5% of workers declared being mobbed at
 their workplace. Some personal, job characteristics and working conditions
 are found to be significant at explaining the probability of being a
 mobbing victim. Finally, we find differences in the variables affecting
 such probability depending on the victim's gender. 
Journal: Applied Economics 
Pages: 3777-3787 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360112 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360112 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3777-3787




Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Dopke 
Author-X-Name-First: Jorg 
Author-X-Name-Last: Dopke 
Author-Name: Sebastian Weber 
Author-X-Name-First: Sebastian 
Author-X-Name-Last: Weber 
Title: The within-distribution business cycle dynamics of German firms 
Abstract:
  In this article, we analyse stylized facts for Germany's business cycle
 at the firm level. Based on longitudinal firm-level data from the
 Bundesbank's balance sheet statistics covering, on average, 55 000 firms
 per year from 1971 to 1998, we estimate transition probabilities of a firm
 in a certain real sales growth regime switching to another regime in the
 next period, e.g. whether a firm that has witnessed a high growth rate is
 likely to stay in a regime of high growth or is bound to switch to a
 regime of low growth in the subsequent period. We find that these
 probabilities depend on the business cycle position. 
Journal: Applied Economics 
Pages: 3789-3802 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360120 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360120 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3789-3802




Template-Type: ReDIF-Article 1.0
Author-Name: Oludele Akinloye Akinboade 
Author-X-Name-First: Oludele Akinloye 
Author-X-Name-Last: Akinboade 
Author-Name: Daniel Makina 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Makina 
Title: Econometric analysis of bank lending and business cycles in South Africa 
Abstract:
  This article examines econometric relationships between bank lending and
 business cycle in South Africa. Two long-run economic relationships are
 hypothesized between total credit and the variables, namely, coincidental
 indicators, spread between lending and borrowing rates, money supply,
 stock price index, inflation and banking sector specific factors included
 in the model. Of these variables, only coincident indicators, changes in
 money supply as well as capital, and reserve are found to exert some
 influence on short-run total credit availability. 
Journal: Applied Economics 
Pages: 3803-3811 
Issue: 29 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3803-3811




Template-Type: ReDIF-Article 1.0
Author-Name: Turgut K&#x131;s&#x131;nbay 
Author-X-Name-First: Turgut 
Author-X-Name-Last: K&#x131;s&#x131;nbay 
Title: Predictive ability of asymmetric volatility models at medium-term horizons 
Abstract:
  Using realized volatility to estimate conditional variance of financial
 returns, we compare forecasts of volatility from linear GARCH models with
 asymmetric ones. We consider horizons extending to 30 days. Forecasts are
 compared using three different evaluation tests. With data from an equity
 index and two foreign exchange returns, we show that asymmetric models
 provide statistically significant forecast improvements upon the GARCH
 model for two of the datasets and improve forecasts for all datasets by
 means of forecasts combinations. These results extend to about 10 days in
 the future, beyond which the forecasts are statistically inseparable from
 each other. 
Journal: Applied Economics 
Pages: 3813-3829 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360211 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360211 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3813-3829




Template-Type: ReDIF-Article 1.0
Author-Name: Saziye Gaziog-super-&#x2dc;lu 
Author-X-Name-First: Saziye 
Author-X-Name-Last: Gaziog-super-&#x2dc;lu 
Author-Name: Azize Bast&#x131;yal&#x131;-Hayfavi 
Author-X-Name-First: Azize 
Author-X-Name-Last: Bast&#x131;yal&#x131;-Hayfavi 
Title: Stochastic optimization applied to self-financing portfolio: does bequest matter? 
Abstract:
  The article studies stochastic optimization of an intertemporal
 consumption model to allocate financial assets between risky and risk-free
 assets. We use a stochastic optimization technique, in which utility is
 maximized subject to a self-financing portfolio constraint. The papers in
 literature have estimated the errors of Euler equations using data from
 financial markets. It has been shown that it is sufficient to test the
 first order Euler equation implied by the model. However, they all assume
 a constant consumption-wealth ratio that constrains the boundary
 conditions, hence influencing the coefficient of the risk premium. The
 main contribution of our article is that we drop the assumption of a
 constant consumption-wealth ratio. We have an analytical solution using a
 utility maximization model with a stochastic self-financing portfolio. We
 introduce a terminal condition of wealth with and without bequests. We
 also simulate the stochastic optimization with a self-financing portfolio,
 distinguishing risk neutral investors (&#x3b3;-low) from high risk averse
 investors (&#x3b3;-high). We show that the model with bequest has a higher
 level of wealth and a smoother decline of consumption over time than the
 model with no bequest at the end of the period. The model with no bequest
 has the same level of consumption and a sharp fall at the end of the
 period. Risk averse agents with high return assets have a higher amount of
 wealth than risk-neutral agents with lower return assets. 
Journal: Applied Economics 
Pages: 3831-3838 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802112364 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112364 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3831-3838




Template-Type: ReDIF-Article 1.0
Author-Name: Erdinc Telatar 
Author-X-Name-First: Erdinc 
Author-X-Name-Last: Telatar 
Author-Name: Funda Telatar 
Author-X-Name-First: Funda 
Author-X-Name-Last: Telatar 
Author-Name: Tarkan Cavusoglu 
Author-X-Name-First: Tarkan 
Author-X-Name-Last: Cavusoglu 
Author-Name: Umur Tosun 
Author-X-Name-First: Umur 
Author-X-Name-Last: Tosun 
Title: Political instability, political freedom and inflation 
Abstract:
  Using a dynamic panel data approach, we estimate the impact of the
 political and institutional factors on inflation. Estimation results show
 that a lower degree of political instability generates lower inflation
 only for developed and low-inflation countries. However, when political
 freedom is taken into account, political instability appears to be
 influential on inflation also for developing countries and turns out to be
 significant only for high-inflation countries. Such findings emphasize the
 inflation-reducing effects of political stability depending on democratic
 political structure. 
Journal: Applied Economics 
Pages: 3839-3847 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360237 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360237 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3839-3847




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Woodland 
Author-X-Name-First: Alan 
Author-X-Name-Last: Woodland 
Author-Name: Kishti Sen 
Author-X-Name-First: Kishti 
Author-X-Name-Last: Sen 
Title: The volatility of Australian traded goods' prices 
Abstract:
  It is generally accepted that the Australian economy is continually
 subject to unanticipated shocks, particularly, unexpected swings in the
 prices of Australia's internationally- traded goods. This article
 empirically investigates the nature and extent of volatility in import and
 export prices faced by the Australian production sector. It estimates
 multivariate GARCH models of the stochastic processes generating the
 prices of imports and exports, and of important components of exports and
 imports. This article proposes an index of volatility, which is used to
 provide a summary measure of the extent of volatility in a multivariate
 context. The overall conclusion is that the price growth rates for
 Australia's traded goods exhibit considerable time variation in volatility
 and that these price growth rates are highly and positively correlated
 with each other. 
Journal: Applied Economics 
Pages: 3849-3869 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360286 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360286 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3849-3869




Template-Type: ReDIF-Article 1.0
Author-Name: Shunsuke Managi 
Author-X-Name-First: Shunsuke 
Author-X-Name-Last: Managi 
Title: Productivity measures and effects from subsidies and trade: an empirical analysis for Japan's forestry 
Abstract:
  Several techniques have been proposed in the literature to measure
 productivity. While allowing for inefficiency of the production unit, we
 provide a methodological comparison of alternative approaches to measure
 total factor productivity. This article evaluates the effects of
 unintended policy outcomes such as government subsidies and foreign trade.
 Empirically, we analyse the forest productivity of timber in Japan by
 using panel data on 46 regions. The results suggest substantial variation
 in productivity between these two techniques although average trends are
 similar. We find that subsidies impede competition since the government is
 ready to rescue a loss-making firm with subsidies rather than allow it to
 close. In contrast, trade is shown to have positive effects on
 productivity. 
Journal: Applied Economics 
Pages: 3871-3883 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360146 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3871-3883




Template-Type: ReDIF-Article 1.0
Author-Name: Gicheol Jeong 
Author-X-Name-First: Gicheol 
Author-X-Name-Last: Jeong 
Author-Name: Jongsu Lee 
Author-X-Name-First: Jongsu 
Author-X-Name-Last: Lee 
Title: Estimating consumer preferences for online music services 
Abstract:
  This article analyses consumer preferences with regard to important
 attributes of online music services. Conjoint analysis and a random
 coefficient discrete choice model using Bayesian approach with Gibbs
 sampling are used to estimate the preferences. Based on the quantitative
 results, we use simulation to look at how a new pricing strategy and the
 threat of legal penalty for file sharing would influence the online music
 market. Findings include these: estimated willingness to pay for
 downloading one music file is significantly less than the actual price of
 the file; consumers are sensitive to longer search and download times for
 music files and very sensitive to the threat of legal action; and
 consumers are not sensitive to online music services broadening their
 catalogues. Finally, the simulation shows that a combination of increased
 transaction costs for illegal file sharing and lower-priced digital music
 files would inhibit illegal file sharing and bolster the number of people
 purchasing music legally from the online services. 
Journal: Applied Economics 
Pages: 3885-3893 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360153 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360153 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3885-3893




Template-Type: ReDIF-Article 1.0
Author-Name: Harald Tauchmann 
Author-X-Name-First: Harald 
Author-X-Name-Last: Tauchmann 
Title: Consistency of Heckman-type two-step estimators for the multivariate sample-selection model 
Abstract:
  This analysis shows that multivariate generalizations to the classical
 Heckman (1976, 1979) two-step estimator that account for cross-equation
 correlation and use the inverse Mills ratio as correction term are
 consistent only if certain restrictions apply to the true error-covariance
 structure. An alternative class of generalizations to the classical
 Heckman two-step approach is derived that condition on the entire
 selection pattern rather than selection in particular equations and,
 therefore, use modified correction terms. It is shown that this class of
 estimators is consistent. In addition, Monte-Carlo results illustrate that
 these estimators display a smaller mean square prediction error. 
Journal: Applied Economics 
Pages: 3895-3902 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360179 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360179 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3895-3902




Template-Type: ReDIF-Article 1.0
Author-Name: Benoit Dostie 
Author-X-Name-First: Benoit 
Author-X-Name-Last: Dostie 
Author-Name: Rajshri Jayaraman 
Author-X-Name-First: Rajshri 
Author-X-Name-Last: Jayaraman 
Author-Name: Mathieu Trepanier 
Author-X-Name-First: Mathieu 
Author-X-Name-Last: Trepanier 
Title: What (if any) are the returns to computer use? 
Abstract:
  Using North American data, we revisit the question first broached by
 Krueger (1993) and re-examined by DiNardo and Pischke (1997) of whether
 there exists a real wage differential associated with computer use.
 Employing a mixed effects model with matched employer-employee data to
 correct for the fact that workers and workplaces that use computers are
 self-selected, we find that computer users enjoy an almost 4% wage premium
 over nonusers. Failure to correct for worker and workplace selection
 effect leads to a more than twofold overestimate of this premium. 
Journal: Applied Economics 
Pages: 3903-3912 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360187 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360187 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3903-3912




Template-Type: ReDIF-Article 1.0
Author-Name: David Tennant 
Author-X-Name-First: David 
Author-X-Name-Last: Tennant 
Author-Name: Abdullahi Abdulkadri 
Author-X-Name-First: Abdullahi 
Author-X-Name-Last: Abdulkadri 
Title: Empirical exercises in estimating the effects of different types of financial institutions' functioning on economic growth 
Abstract:
  While recent studies of the finance-growth nexus have focused on the use
 of proxies which more accurately capture the theorized functioning of the
 financial sector, they have tended to focus either on the functioning of
 the financial sector as a whole, or on the dominant institutions within
 the sector. Little attention has been paid to a comparison of the relative
 effects of different types of financial institutions on economic growth.
 This article attempts to get a deeper understanding of the finance-growth
 process by disaggregating the total financial sector impact and examining
 the individual and relative effects of each type of institution in the
 financial sector. We explore the empirical properties of alternative
 specifications of models of the impact of financial institutions'
 functioning on economic growth, by conducting a number of exercises. These
 exercises experiment with various model specifications to represent the
 long- and short-run impacts of the financial institutions' functioning on
 economic growth, using cointegration and error correction methodologies. 
Journal: Applied Economics 
Pages: 3913-3924 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360252 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360252 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3913-3924




Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh 
Author-X-Name-First: Tarlok 
Author-X-Name-Last: Singh 
Title: Services sector and economic growth in India 
Abstract:
  This study examines the long-run equilibrium and short-run dynamic
 relationship between services sector and Gross Domestic Product (GDP) and
 between services and nonservices sectors in India. The model is estimated
 using the optimal single-equation and the maximum-likelihood system
 estimators. All the estimators consistently suggest the cointegrating
 relationship between services sector and GDP as well as between services
 and nonservices sectors. The estimates of long-run elasticity parameters
 are statistically significant and dimensionally consistent across the
 estimators. The conventional Cumulative Sum (CUSUM) and the new CUSUM and
 Moving Sum (MOSUM) tests suggest the stability of the equilibrium
 residuals and reinforce the cointegrating relationship between the model
 series. The error correction model provides some support for
 unidirectional Granger-causality from services sector to GDP. The impulse
 response and variance decomposition analyses instead suggest the
 bidirectional causality between services sector and GDP and between
 services and nonservices sectors. The stable growth of services sector is
 essentially crucial to absorb the adverse effects of exogenous weather
 shocks in agriculture and industry and provide resilience to the economy. 
Journal: Applied Economics 
Pages: 3925-3941 
Issue: 30 
Volume: 42 
Year: 2010 
X-DOI: 10.1080/00036840802360229 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360229 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3925-3941




Template-Type: ReDIF-Article 1.0
Author-Name: U. Michael Bergman 
Author-X-Name-First: U. 
Author-X-Name-Last: Michael Bergman 
Author-Name: Yin-Wong Cheung 
Author-X-Name-First: Yin-Wong 
Author-X-Name-Last: Cheung 
Author-Name: Kon Lai 
Author-X-Name-First: Kon 
Author-X-Name-Last: Lai 
Title: The common-trend and transitory dynamics in real exchange rate fluctuations 
Abstract:
  This study examines the behaviour of both Common Trend (CT) and
 transitory components of Real Exchange Rate (RER) fluctuations under the
 current float. The CT component is in most cases found to be sizeable,
 albeit its relative importance can vary considerably across major
 currencies and its estimate can be sensitive to whether or not long-run
 Purchasing Power Parity (PPP) is imposed on the data. Further analysis
 suggests that both CT and transitory innovations are linked much more to
 interest rate changes than to productivity changes. Accordingly, it is
 interest rate, not productivity, disturbances that drive the highly
 persistent RER. 
Journal: Applied Economics 
Pages: 1-18 
Issue: 1 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742645 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:1-18




Template-Type: ReDIF-Article 1.0
Author-Name: Jose J. Martin Martin 
Author-X-Name-First: Jose J. Martin 
Author-X-Name-Last: Martin 
Author-Name: M. Puerto Lopez del Amo Gonzalez 
Author-X-Name-First: M. 
Author-X-Name-Last: Puerto Lopez del Amo Gonzalez 
Author-Name: M. Dolores Cano Garcia 
Author-X-Name-First: M. 
Author-X-Name-Last: Dolores Cano Garcia 
Title: Review of the literature on the determinants of healthcare expenditure 
Abstract:
  This study reviews the literature on determinants of healthcare
 expenditure for the period 1998 to 2007. The methodology combines searches
 in the MesH database of PubMed with the search in the principal journals
 of Health Economics. 20 primary studies were found that met the criteria
 for inclusion. No single pattern of results is clearly identified. Among
 the 20 articles, four consider income to be the principal determinant of
 healthcare expenditure, two of them jointly with population ageing. Six
 highlight population ageing, as against six others that emphasize the
 proximity to death. The remaining six do not focus on a specific variable,
 or focus on another variable, e.g. technological progress or territorial
 decentralization. 11 of the 20 articles calculate the income elasticity of
 demand, only two of them obtaining a value greater than 1, thus
 cataloguing healthcare expenditure as a luxury good. There is, therefore,
 no unanimity in the variables and econometric regressions of healthcare
 expenditure in Organization for Economic Cooperation and Development
 (OECD) countries. No solid empirical evidence exists that population
 ageing is one of the principal determinants of healthcare expenditure, and
 factors such as technological progress, closeness to death and territorial
 decentralization of healthcare are increasingly seen as important in the
 development of explanatory models of healthcare expenditure. 
Journal: Applied Economics 
Pages: 19-46 
Issue: 1 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003689754 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689754 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:19-46




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Sutter 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Sutter 
Title: The 'liberal' media: bias or customer preferences? 
Abstract:
  Allegations of liberal bias against the national news media in the US
 remain very contentious. Conservative critics of the media argue biased
 news stems from liberal-leaning journalists. Another explanation of
 alleged bias could be that liberals have a greater demand for news than
 moderates or conservatives, so the media simply tailors its product to
 their customers. I test whether liberals in the US have a greater demand
 for news by investigating the determinants of newspaper circulation across
 states and metropolitan areas. I find mixed evidence for liberal demand:
 circulation is higher in more liberal metropolitan areas but is
 independent of local political preferences across states. 
Journal: Applied Economics 
Pages: 47-52 
Issue: 1 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802419009 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802419009 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:47-52




Template-Type: ReDIF-Article 1.0
Author-Name: Denis Larocque 
Author-X-Name-First: Denis 
Author-X-Name-Last: Larocque 
Author-Name: Michel Normandin 
Author-X-Name-First: Michel 
Author-X-Name-Last: Normandin 
Title: A procedure to evaluate cyclical fluctuations under superior information 
Abstract:
  This article presents and assesses a procedure to evaluate conventional
 moments characterizing fluctuations at the business cycle frequency, when
 the economic agents' information set is superior to the econometrician's
 one. First, we derive the theoretical conditions under which the
 econometrician obtains valid statistics for the moments from laws of
 motion for forcing variables that fully recover the agents' superior
 information. Second, we use a new-Keynesian monetary model to document the
 numerical properties of the statistics when the laws of motion are
 possibly misspecified and to assess the ability of certain information
 criteria to detect the presence of superior information. 
Journal: Applied Economics 
Pages: 53-62 
Issue: 1 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802552361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802552361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:53-62




Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Hodgson 
Author-X-Name-First: Douglas 
Author-X-Name-Last: Hodgson 
Title: An analysis of pricing and returns in the market for French Canadian paintings 
Abstract:
  The valuation of French Canadian paintings is analysed empirically. Using
 a sample of auction prices for major French Canadian painters for the
 period 1968 to 2005, we run hedonic regressions to determine the influence
 of various factors, including painter identity, on auction prices, as well
 as to construct a market price index. This is then used in a second stage
 analysis of the properties of these art works viewed as investment assets.
 We consider the extent to which standard asset pricing theory, as
 represented by the capital asset pricing model, can account for price
 movements in the market for French Canadian paintings. 
Journal: Applied Economics 
Pages: 63-73 
Issue: 1 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802400462 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802400462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:63-73




Template-Type: ReDIF-Article 1.0
Author-Name: Long-Hwa Chen 
Author-X-Name-First: Long-Hwa 
Author-X-Name-Last: Chen 
Author-Name: Wei-Chung Wang 
Author-X-Name-First: Wei-Chung 
Author-X-Name-Last: Wang 
Title: The impact of the overtime policy reform-evidence from the low-paid workers in Taiwan 
Abstract:
  This article investigates the effects of shortening standard workweek on
 workers with different income levels. Using two repeated cross-sectional
 survey data, the Taiwanese Manpower Utilization Survey and Human Resource
 Survey, we estimate the impacts of the new policy on working hours and
 monthly income. Our results show that the new standard workweek in Taiwan
 has made the working hours drop, but the scale of decrease becomes smaller
 in the following 3 years. Although the hours drop has gradually risen back
 for every worker, the rate of increase is higher for the low-income
 workers. The monthly incomes of the high-income female workers have
 decreased, however, the decreases in the hourly wage rates are less than
 their average wage rates. Our results also show that the firms have
 automatically adapted under the new law and a poor enforcement scheme
 after a period of time. 
Journal: Applied Economics 
Pages: 75-90 
Issue: 1 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802389079 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802389079 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:75-90




Template-Type: ReDIF-Article 1.0
Author-Name: Yucan Liu 
Author-X-Name-First: Yucan 
Author-X-Name-Last: Liu 
Author-Name: C. Richard Shumway 
Author-X-Name-First: C. 
Author-X-Name-Last: Richard Shumway 
Author-Name: Robert Rosenman 
Author-X-Name-First: Robert 
Author-X-Name-Last: Rosenman 
Author-Name: Virgil Eldon Ball 
Author-X-Name-First: Virgil Eldon 
Author-X-Name-Last: Ball 
Title: Productivity growth and convergence in US agriculture: new cointegration panel data results 
Abstract:
  Dynamic effects of health and inter-state and inter-industry knowledge
 spillovers, Total Factor Productivity (TFP) growth and convergence in US
 agriculture are examined using recently developed procedures for panel
 data and a growth accounting model. Strong evidence is found to support
 the hypothesis that TFP converges to a steady state. Health care supply in
 rural areas and research spillovers from other states and from
 nonagricultural sectors are found to have significant impacts on the
 productivity growth rate in both the short and the long run. These results
 suggest a richer set of opportunities for policy makers to enhance
 productivity growth than previously considered. 
Journal: Applied Economics 
Pages: 91-102 
Issue: 1 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802389087 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802389087 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:91-102




Template-Type: ReDIF-Article 1.0
Author-Name: Giulio Bottazzi 
Author-X-Name-First: Giulio 
Author-X-Name-Last: Bottazzi 
Author-Name: Alex Coad 
Author-X-Name-First: Alex 
Author-X-Name-Last: Coad 
Author-Name: Nadia Jacoby 
Author-X-Name-First: Nadia 
Author-X-Name-Last: Jacoby 
Author-Name: Angelo Secchi 
Author-X-Name-First: Angelo 
Author-X-Name-Last: Secchi 
Title: Corporate growth and industrial dynamics: evidence from French manufacturing 
Abstract:
  This work explores basic properties of the size and growth rates
 distributions of firms at the aggregate and disaggregate levels. Using an
 extensive dataset on French manufacturing firms, we investigate which
 properties of firm size distributions and growth dynamics characterize the
 aggregate dynamics and are, at the same time, robust under disaggregation.
 Our analysis is based on nonlinear robust regression methods which have
 never been applied before to this kind of data. The growth rates
 distributions we observe are well described by a Subbotin distribution
 with a shape parameter significantly lower than 1, suggesting a noticeable
 departure from the Laplace behaviour reported in previous works on Italian
 and the US data. At the same time, the variance of growth rates depends
 negatively on size and the relationship does not seem to be linear, with
 larger firms possibly displaying lower variability in their growth
 dynamics. At the disaggregate level, we observe significant heterogeneity
 in the firm size distributions across sectors, while the shape of the
 sectoral growth rates density displays a surprising degree of homogeneity. 
Journal: Applied Economics 
Pages: 103-116 
Issue: 1 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802400454 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802400454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:103-116




Template-Type: ReDIF-Article 1.0
Author-Name: Feng-Li Lin 
Author-X-Name-First: Feng-Li 
Author-X-Name-Last: Lin 
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Title: Does debt affect firm value in Taiwan? A panel threshold regression analysis 
Abstract:
  This article analyses whether leverage affects firm value and does so
 using a panel of 196 Taiwanese listed companies during the 13-year
 (1993-2005) period. We employ an advanced panel threshold regression model
 to test whether there is a 'threshold' debt ratio which causes there to be
 asymmetrical relationships between debt ratio and firm value. We adopt
 Tobin's Q as proxy for firm value. We find that there are two threshold
 effects between debt ratio and firm value, and these are 9.86% and 33.33%.
 When the debt ratio is less than 9.86%, Tobin's Q (i.e. firm value)
 increases by 0.0546%, with an increase of 1% in the debt ratio. When the
 debt ratio is between 9.86% and 33.33%, we find Tobin's Q increases by
 only 0.0057%, with an increase of 1% in the debt ratio. But when the debt
 ratio is greater than 33.33%, there is no relationship between debt ratio
 and firm value. We therefore conclude that there must be a threshold debt
 ratio of less than 33.33% at which point firm value stops increasing.
 These results are consistent with the trade-off theory, which suggests
 that there is a static amount of debt which prompts managers to find the
 'optimal capital structure' that maximizes firm value when the benefits of
 debt equal the marginal cost of debt. 
Journal: Applied Economics 
Pages: 117-128 
Issue: 1 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802360310 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360310 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:117-128




Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Mohammadi 
Author-X-Name-First: Hassan 
Author-X-Name-Last: Mohammadi 
Title: Long-run relations and short-run dynamics among coal, natural gas and oil prices 
Abstract:
  We examine the long-run relations and short-run dynamics among the three
 primary energy prices-coal, natural gas and crude oil-using the annual and
 monthly US data for the post-1970 period. The results are consistent with
 the view that oil prices are determined globally; natural gas prices are
 determined regionally and coal prices are set by long-term contracts. 
Journal: Applied Economics 
Pages: 129-137 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802446606 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802446606 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:129-137




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Oktem 
Author-X-Name-First: Mustafa 
Author-X-Name-Last: Oktem 
Author-Name: Ju-Chin Huang 
Author-X-Name-First: Ju-Chin 
Author-X-Name-Last: Huang 
Title: Property tax shifting under imperfect competition 
Abstract:
  The hedonic price models are commonly used to empirically assess the
 degree to which property taxes are shifted from property owners to
 property renters. The findings of these studies vary sporadically in terms
 of the degree of tax shifting. The competitiveness of housing markets may
 significantly influence the degree of tax shifting. In this article, we
 allow a nonzero price-cost markup in the hedonic price equation and
 examine the impact of market power on property tax shifting. In our case
 study, we examine the property-specific characteristics, occupancy record
 and local property tax associated with hundreds of managed rental
 properties in central New Hampshire. The results show that, depending on
 the degree of market power exercised by a property management firm, the
 anti-competitive structure of the market may significantly contribute to
 property tax shifting from property owners to property renters. 
Journal: Applied Economics 
Pages: 139-152 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802446614 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802446614 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:139-152




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Stephane Mesonnier 
Author-X-Name-First: Jean-Stephane 
Author-X-Name-Last: Mesonnier 
Title: The forecasting power of real interest rate gaps: an assessment for the Euro area 
Abstract:
  The real Interest Rate Gap (IRG)-the gap between the short-term real
 interest rate and its 'natural' level-is a theoretical concept that has
 attracted much attention in central banks in recent years. This article
 aims at clarifying its practical relevance for monetary policy in real
 time. For this purpose, it provides an empirical assessment of the
 usefulness of a semi-structural versus purely statistical estimates of the
 real IRG for predicting policy relevant macroeconomic variables in the
 Euro area. However mixed, the results confirm that semi-structural
 estimates of the real IRG deserve being added to the central banks'
 toolbox. 
Journal: Applied Economics 
Pages: 153-172 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802481868 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802481868 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:153-172




Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig 
Author-X-Name-First: Jochen 
Author-X-Name-Last: Hartwig 
Title: Can Baumol's model of unbalanced growth contribute to explaining the secular rise in health care expenditure? An alternative test 
Abstract:
  In a recent paper, I argued that Baumol's model of 'unbalanced growth'
 offers a ready explanation for the observed secular rise in Health Care
 Expenditure (HCE) in rich countries. Baumol's model implies that HCE is
 driven by wage increases in excess of productivity growth. I tested this
 hypothesis empirically, using data from a panel of 19 Organization for
 Economic Cooperation and Development (OECD) countries and found robust
 evidence in favour of Baumol's theory. An alternative way to test Baumol's
 theory is to check whether its implication that variations in the relative
 price of medical care contribute significantly to explaining variations in
 health expenditure in the same direction has an empirical grounding.
 Earlier studies, although mostly not in an explicit attempt to test
 Baumol's theory, have occasionally rejected this hypothesis. Despite poor
 data quality of the available medical price indices, I perform the
 alternative test using data for nine OECD countries. My findings suggest
 that the relative price of medical care is in fact a statistically
 significant explanatory variable for health expenditure, thus lending
 support to Baumol's theory. 
Journal: Applied Economics 
Pages: 173-184 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802400470 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802400470 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:173-184




Template-Type: ReDIF-Article 1.0
Author-Name: Alfred Haug 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Haug 
Author-Name: Syed Basher 
Author-X-Name-First: Syed 
Author-X-Name-Last: Basher 
Title: Linear or nonlinear cointegration in the purchasing power parity relationship? 
Abstract:
  We test long-run Purchasing Power Parity (PPP) within a general model of
 cointegration of linear and nonlinear form. Nonlinear cointegration is
 tested with rank tests of Breitung (2001). We determine first the order of
 integration of each variable, using monthly data from the post-Bretton
 Woods era for G-10 countries. In many cases prices are I(2), whereas all
 exchange rates are I(1). However, there are several countries that have a
 price level that linearly cointegrates with the US price level so that
 this combination is I(1). Overall, we find some, though limited, evidence
 for nonlinear and also linear cointegration for the weak version of PPP. 
Journal: Applied Economics 
Pages: 185-196 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802403656 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802403656 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:185-196




Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Matsui 
Title: Dynamic adjustment process of retail store density in cointegrated panels: evidence from Japan 
Abstract:
  Using recently developed econometric techniques for testing the existence
 of unit roots and cointegration in panel datasets, this article
 investigates the dynamic adjustment process of the number of retail stores
 per person by business type. Specifically, the major objective of this
 article is to examine whether there is a long-term relationship between
 retail store density and consumers' ability to transport and store goods;
 that is, the relative costs of performing distributive tasks, as suggested
 in previous studies relating to store density. The first conclusion from
 this article is that a cointegration relationship exists between store
 density for most types of retail businesses and proxies for consumers'
 ability to transport and store goods. Second, the estimation results of an
 error correction model reveal that the density of stores dealing in
 convenience goods exhibits a slow adjustment speed to recover the long-run
 equilibrium density level, while the density of stores selling shopping
 goods shows relatively fast adjustment. 
Journal: Applied Economics 
Pages: 197-205 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802534450 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802534450 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:197-205




Template-Type: ReDIF-Article 1.0
Author-Name: David Sondermann 
Author-X-Name-First: David 
Author-X-Name-Last: Sondermann 
Author-Name: Mark Trede 
Author-X-Name-First: Mark 
Author-X-Name-Last: Trede 
Author-Name: Bernd Wilfling 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Wilfling 
Title: Estimating the degree of interventionist policies in the run-up to EMU 
Abstract:
  Based on a theoretical monetary exchange-rate model in continuous time,
 this article establishes a sequential estimation framework which is
 capable of indicating central bank intervention in the run-up to a
 currency union. Using daily pre-European Monetary Union (pre-EMU)
 exchange-rate data for the countries of the current Euro zone, we find
 mixed evidence of active pre-EMU intervention policies (so-called
 institutional frontloading strategies). Our estimation framework is highly
 relevant to economic and political agents operating in financial markets
 of the upcoming EMU accession countries. 
Journal: Applied Economics 
Pages: 207-218 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802481884 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802481884 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:207-218




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Holmes 
Author-X-Name-First: Mark 
Author-X-Name-Last: Holmes 
Author-Name: Theodore Panagiotidis 
Author-X-Name-First: Theodore 
Author-X-Name-Last: Panagiotidis 
Author-Name: Abhijit Sharma 
Author-X-Name-First: Abhijit 
Author-X-Name-Last: Sharma 
Title: The sustainability of India's current account 
Abstract:
  This study conducts an investigation into the sustainability of the
 Indian current account using data for 1950 onwards. A necessary condition
 for current account sustainability is that exports and imports are
 cointegrated. After testing for unit roots that allow for a structural
 break, we employ parametric tests for cointegration: based on Johansen
 (1995) and Saikkonen and Lutkepohl (2000a, b, c) as well as the
 nonparametric procedure proposed by Breitung (2002) and Breitung and
 Taylor (2003) that does not assume linearity. By employing these
 procedures recursively, two distinct regimes are identified characterized
 by whether or not imports and exports are cointegrated. The regime of
 noncointegration runs until the late 1990s and the second regime of
 cointegration is present after that. This latter regime coincides with the
 liberalization of the Indian economy. 
Journal: Applied Economics 
Pages: 219-229 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802481876 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802481876 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:219-229




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Yang-Cheng Lu 
Author-X-Name-First: Yang-Cheng 
Author-X-Name-Last: Lu 
Author-Name: D. P. Tang 
Author-X-Name-First: D. P. 
Author-X-Name-Last: Tang 
Author-Name: Wen-Chi Liu 
Author-X-Name-First: Wen-Chi 
Author-X-Name-Last: Liu 
Title: Long-run purchasing power parity with asymmetric adjustment: further evidence from African countries 
Abstract:
  This study applies threshold cointegration test advanced by Enders and
 Siklos (2001) to investigate the properties of asymmetric adjustment in
 long-run Purchasing Power Parity (PPP) in 22 selected African countries
 during the period of January 1980 to December 2003. Although there is
 evidence of long-run PPP for most African countries, the adjustment
 mechanism is asymmetric. These results have particularly important policy
 implications for African countries. 
Journal: Applied Economics 
Pages: 231-242 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802467073 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802467073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:231-242




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Cuestas 
Author-X-Name-First: Juan Carlos 
Author-X-Name-Last: Cuestas 
Author-Name: Estefania Mourelle 
Author-X-Name-First: Estefania 
Author-X-Name-Last: Mourelle 
Title: Nonlinearities in real exchange rate determination: do African exchange rates follow a random walk? 
Abstract:
  In this article, we aim at modelling the long-run behaviour of the Real
 Effective Exchange Rates (REER) for a pool of African countries. Not much
 attention has been paid to this group of countries, in particular, to the
 existence of nonlinearities in the long-run path of such a variable.
 Controlling for two sources of nonlinearities, i.e. asymmetric adjustment
 to equilibrium and nonlinear deterministic trends allows us to gain some
 insight about the behaviour of the African REER. We find that these
 sources of nonlinearities help us to explain the apparent unit root
 behaviour found applying linear unit root tests for most of the countries. 
Journal: Applied Economics 
Pages: 243-258 
Issue: 2 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802467065 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802467065 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:243-258




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Henneke 
Author-X-Name-First: Jan 
Author-X-Name-Last: Henneke 
Author-Name: Svetlozar Rachev 
Author-X-Name-First: Svetlozar 
Author-X-Name-Last: Rachev 
Author-Name: Frank Fabozzi 
Author-X-Name-First: Frank 
Author-X-Name-Last: Fabozzi 
Author-Name: Metodi Nikolov 
Author-X-Name-First: Metodi 
Author-X-Name-Last: Nikolov 
Title: MCMC-based estimation of Markov Switching ARMA-GARCH models 
Abstract:
  Regime switching models, especially Markov Switching (MS) models, are
 regarded as a promising way to capture nonlinearities in time series.
 Combining the elements of MS models with full Autoregressive Moving
 Average-Generalized Autoregressive Conditional Heteroskedasticity
 (ARMA-GARCH) models poses severe difficulties for the computation of
 parameter estimators. Existing methods can become completely unfeasible
 due to the full path dependence of such models. In this article, we
 demonstrate how to overcome this problem. We formulate a full
 MS-ARMA-GARCH model and its Bayes estimator. This facilitates the use of
 Markov Chain Monte Carlo methods and allows us to develop an algorithm to
 compute the Bayes estimator of the regimes and parameters of our model.
 The approach is illustrated on simulated data and with returns from the
 New York Stock Exchange (NYSE). Our model is then compared to other
 approaches and clearly proves to be advantageous. 
Journal: Applied Economics 
Pages: 259-271 
Issue: 3 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802552379 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802552379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:259-271




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti 
Author-X-Name-First: Leonardo 
Author-X-Name-Last: Becchetti 
Author-Name: Giovanni Trovato 
Author-X-Name-First: Giovanni 
Author-X-Name-Last: Trovato 
Author-Name: David Andres Londono Bedoya 
Author-X-Name-First: David Andres 
Author-X-Name-Last: Londono Bedoya 
Title: Income, relational goods and happiness 
Abstract:
  Our empirical analysis on the determinants of self-declared happiness on
 more than 100 000 individuals from representative samples in 82 world
 countries does not reject the hypothesis that the time spent for
 relationships has a significant and positive impact on happiness. This
 basic nexus helps to understand new unexplored paths in the so-called
 'happiness-income paradox'. To illustrate them we show that personal
 income has two main effects on happiness. The first is a positive effect
 which depends on individual's ranking within domestic income quintiles.
 The second is determined by the relationship between income and relational
 goods. In principle, more productive individuals may substitute (if the
 income effect prevails over the substitution effect) worked hours with the
 nonworking time made free for enjoying relationships, when they have
 strong preferences for them. The problem is that these individuals tend to
 have ties with their income class peers who share with them a high
 opportunity cost for the time spent for relationships. Hence, a
 coordination failure may reduce the joint investment in relational goods
 (local public goods which need to be co-produced in order to be enjoyed
 together) and, through this effect, individuals in the highest income
 quintiles may end up with poorer relational goods. The indirect impact of
 personal income on happiness through this channel is therefore expected to
 be negative. 
Journal: Applied Economics 
Pages: 273-290 
Issue: 3 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802570439 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802570439 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:273-290




Template-Type: ReDIF-Article 1.0
Author-Name: Byeongyong Paul Choi 
Author-X-Name-First: Byeongyong Paul 
Author-X-Name-Last: Choi 
Author-Name: Elyas Elyasiani 
Author-X-Name-First: Elyas 
Author-X-Name-Last: Elyasiani 
Title: Foreign-owned insurer performance in the US property-liability markets 
Abstract:
  Foreign-owned property-liability insurers have increased their market
 share in the US in the recent decades. They may have achieved this by
 being more efficient, by undercutting prices to attract away business from
 their domestic rivals, or both. We investigate return, risk, efficiency
 and determinants of efficiency performance of these insurers relative to
 their domestic competitors. We find that these firms are less profitable
 and less efficient in terms of cost scale and revenue X-efficiencies but
 more efficient in terms of cost X- and revenue scale efficiencies.
 Overall, the evidence shows that both of the aforementioned factors have
 contributed to their growth. 
Journal: Applied Economics 
Pages: 291-306 
Issue: 3 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802552353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802552353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:291-306




Template-Type: ReDIF-Article 1.0
Author-Name: J. W. B. Bos 
Author-X-Name-First: J. W. B. 
Author-X-Name-Last: Bos 
Author-Name: M. Koetter 
Author-X-Name-First: M. 
Author-X-Name-Last: Koetter 
Title: Handling losses in translog profit models 
Abstract:
  In this article, we compare standard approaches used to handle losses in
 logarithmic profit models with a simple novel approach. We estimate
 translog stochastic profit frontiers, and discuss discriminatory power,
 rank stability and the precision of Profit Efficiency (PE) scores.
 Contrary to existing methods, our approach does not result in a loss of
 observations. Our new method enhances rank stability and discriminatory
 power, and improves the precision of PE scores. 
Journal: Applied Economics 
Pages: 307-312 
Issue: 3 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802570413 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802570413 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:307-312




Template-Type: ReDIF-Article 1.0
Author-Name: Mathieu Narcy 
Author-X-Name-First: Mathieu 
Author-X-Name-Last: Narcy 
Title: Would nonprofit workers accept to earn less? Evidence from France 
Abstract:
  This article focuses on wage differentials between French nonprofit,
 for-profit and public sectors. Considering the public sector allows
 testing more extensively the labour donation theory (Preston, 1989). The
 findings support this theory because nonprofit workers accept to earn
 significantly less than they would earn in the for-profit and public
 sectors. They also suggest differences in the motivations of workers in
 these sectors. Nonprofit workers are attracted to their work for reasons
 transcending material compensation. 
Journal: Applied Economics 
Pages: 313-326 
Issue: 3 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802570447 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802570447 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:313-326




Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Ferreira 
Author-X-Name-First: Mauro 
Author-X-Name-Last: Ferreira 
Title: Capturing asymmetry in real exchange rate with quantile autoregression 
Abstract:
  Quantile Autoregression (QAR) is used to explore asymmetries in the
 adjustment process of pairwise Real Exchange Rate (RER) between the
 Italian lire, French franc, Deutsch mark and the British pound. Based on
 the best specification for each quantile we construct predicted
 conditional density functions, which guided us to identify two sources of
 asymmetry: (1) dispersion depends on the conditioned value of the RER,
 i.e. 'conditional' heteroskedasticity; (2) the probability of increases
 and falls also changes according to the conditioned value, i.e. there is
 higher probability for the RER to appreciate (depreciate) given the
 currency is depreciated (appreciated). We only verified strong
 heterokedasticity in relations among the lire, franc and mark, which was
 resolved by estimating quadratic autoregressive model for some quantiles.
 Relations involving the pound presented stable but higher dispersion
 indicating larger probability of wider oscillation. 
Journal: Applied Economics 
Pages: 327-340 
Issue: 3 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802584919 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584919 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:327-340




Template-Type: ReDIF-Article 1.0
Author-Name: John Robst 
Author-X-Name-First: John 
Author-X-Name-Last: Robst 
Author-Name: Jennifer VanGilder 
Author-X-Name-First: Jennifer 
Author-X-Name-Last: VanGilder 
Title: The role of childhood sexual victimization in the occupational choice of adults 
Abstract:
  Numerous studies have found that survivors of Childhood Sexual Abuse
 (CSA) suffer as adults from depression, post-traumatic stress disorder,
 alcohol and drug abuse, and other mental illnesses. As such, the effect of
 experiencing traumatic events during childhood including sexual abuse can
 be long lasting. The lasting effects of CSA may have economic as well as
 psychological implications. This article examines the relationship between
 CSA and future labour market outcomes for men and women. In particular, we
 examine whether the occupations of abuse survivors differ from those who
 were not subject to sexual abuse, focusing on the gender composition of
 the occupation. In addition, we determine whether there are gender
 differences in the consequences of CSA, and whether incomes of CSA victims
 vary across male and female occupations. 
Journal: Applied Economics 
Pages: 341-354 
Issue: 3 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802584893 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584893 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:341-354




Template-Type: ReDIF-Article 1.0
Author-Name: Stuart Thomas 
Author-X-Name-First: Stuart 
Author-X-Name-Last: Thomas 
Author-Name: Vikash Ramiah 
Author-X-Name-First: Vikash 
Author-X-Name-Last: Ramiah 
Author-Name: Heather Mitchell 
Author-X-Name-First: Heather 
Author-X-Name-Last: Mitchell 
Author-Name: Richard Heaney 
Author-X-Name-First: Richard 
Author-X-Name-Last: Heaney 
Title: Seasonal factors and outlier effects in rate of return on electricity spot prices in Australia's National Electricity Market 
Abstract:
  This article documents seasonal patterns and other characteristics of
 electricity spot prices in the Australian National Electricity Market
 (NEM), over a 7-year sample period. The goal is to investigate more
 specifically the influence of seasonalities and outliers noted in the body
 of literature on electricity prices. The results confirm that electricity
 prices exhibit significant time-of-day and day-of-week effects and monthly
 and yearly effects are significant to a lesser degree. Extremely high
 spikes in the price series are an important characteristic of electricity
 prices and are shown to be a highly significant component of returns
 behaviour. Negative prices are unusual in financial time series data but
 occur in Australian electricity prices and are found to be influential on
 returns. The implications of these finding are that seasonal and outlier
 effects should not be ignored in efforts to model electricity prices. 
Journal: Applied Economics 
Pages: 355-369 
Issue: 3 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802570421 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802570421 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:355-369




Template-Type: ReDIF-Article 1.0
Author-Name: S. Rajapakse 
Author-X-Name-First: S. 
Author-X-Name-Last: Rajapakse 
Title: Estimation of a complete system of nonlinear Engel curves: further evidence from Box-Cox Engel curves for Sri Lanka 
Abstract:
  The specification and estimation of Engle curves has drawn much attention
 over many years since the earliest attempt of Working (1943). Among the
 many approaches, a complete system of Engel curves stood out as more
 appealing as it explicitly imposes the important budget constraint in the
 allocation of family budgets. Further, extended researches were undertaken
 on nonlinear specifications as they are likely to produce results that are
 closer to the reality than the linear systems. Beneito (2003) attempted
 Box-Cox form of nonlinear specification but ended up estimating a set of
 linear equations using seemingly unrelated regression equations method.
 The present research extends the previous work on Engle curves in two
 ways; first by incorporating key demographic characteristics into the
 determination of expenditures in the specification of the Box-Cox form of
 nonlinear system, and second by using primary micro data from large
 household surveys to estimate the system by nonlinear estimation methods.
 Our estimations have produced robust results; the expenditure patterns are
 significantly nonlinear and the expenditure patterns are significantly
 different for different demographic groups. 
Journal: Applied Economics 
Pages: 371-385 
Issue: 3 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802552346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802552346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:371-385




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of labour: introduction and overview 
Abstract:
  We provide an introduction and overview to the seven applied financial
 studies making up this special theme on labour. The studies cover a wide
 range of topics, and employ a variety of applied techniques across a range
 of countries. 
Journal: Applied Economics 
Pages: 387-388 
Issue: 4 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2011.555957 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2011.555957 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:387-388




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Lechner 
Author-X-Name-First: Michael 
Author-X-Name-Last: Lechner 
Author-Name: Rosalia Vazquez-Alvarez 
Author-X-Name-First: Rosalia 
Author-X-Name-Last: Vazquez-Alvarez 
Title: The effect of disability on labour market outcomes in Germany 
Abstract:
  In this article we analyse the individual effects of becoming disabled on
 key aspects of labour market outcomes in Germany. The German Socio
 Economic Panel (1984-2002) collects socio-economic and health data. This
 data is organized such that the potential problems for such an estimation
 that may arise from disability not being a random event are considerably
 reduced. Using matching methods, we find a reduction of individual
 employment chances of about 9 to 13%, the level depending on the degree of
 disability. We find no statistically significant evidence for a reduction
 in income or an increase in unemployment due to disability. We interpret
 these findings as an indication that the German social security systems
 appear to successfully mitigate or at least reduce the economic hardship
 that comes with the event of disability. 
Journal: Applied Economics 
Pages: 389-412 
Issue: 4 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802599974 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599974 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:389-412




Template-Type: ReDIF-Article 1.0
Author-Name: Arnaud Dupuy 
Author-X-Name-First: Arnaud 
Author-X-Name-Last: Dupuy 
Author-Name: Daniel Fernandez-Kranz 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Fernandez-Kranz 
Title: International differences in the family gap in pay: the role of labour market institutions 
Abstract:
  Using the microdata for 35 countries over the period 1985 to 1994 and
 1994 to 2002 we find that labour market institutions are traditionally
 associated with more compressed wage structures and a higher family gap.
 Our results indicate that these policies reduce the price effect of having
 children but aggravate the human capital loss due to motherhood. We also
 find evidence that policies that help women to continue in the same job
 after childbirth decrease the family gap. Of all the countries we study,
 mothers in Southern Europe suffer the biggest family gap and our analysis
 indicates that this is due to the bad combination of labour market
 policies in these countries. Our results are robust to specification
 changes and indicate that the main reason for mothers to lag behind other
 women in terms of earnings is the loss of accumulated job market
 experience caused by career breaks around childbirth. 
Journal: Applied Economics 
Pages: 413-438 
Issue: 4 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902950580 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902950580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:413-438




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Barros 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Barros 
Author-Name: Jean-Pascal Guironnet 
Author-X-Name-First: Jean-Pascal 
Author-X-Name-Last: Guironnet 
Author-Name: Nicolas Peypoch 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Peypoch 
Title: How to quickly get a job? The transition from higher education to French labour market by a survival model 
Abstract:
  This article analyses how long former university students stay
 unemployed, when searching for a new job after the leaving of the French
 higher education. Cox duration models are used to account for the
 proportional hypothesis. The main result of this article is that the
 worker's recruitment is based more on the choice of the faculty of initial
 training than the educational level attainment. Some policy implications
 are derived from our results to give some recommendations for individual
 job search and policy-makers in education. 
Journal: Applied Economics 
Pages: 439-448 
Issue: 4 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903166251 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166251 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:439-448




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Amable 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Amable 
Author-Name: Lilas Demmou 
Author-X-Name-First: Lilas 
Author-X-Name-Last: Demmou 
Author-Name: Donatella Gatti 
Author-X-Name-First: Donatella 
Author-X-Name-Last: Gatti 
Title: The effect of employment protection and product market regulation on labour market performance: substitution or complementarity? 
Abstract:
  This article provides new evidence on the linkages between various forms
 of market regulation and joblessness and its components, unemployment and
 inactivity. One crucial contribution of this article is the analysis of
 the interdependence across Product Market Regulation (PMR) and labour
 markets regulation (Employment Protection Legislation (EPL)). With the
 help of a dynamic fixed effect model with an interaction term, we estimate
 the marginal impact of EPL and PMR at different levels of the other
 interacted variable. To cope with problems related to the inclusion of
 time-invariant institutional variables in fixed effect models, we present
 results of regressions based on a new procedure, specifically designed to
 treat slowly changing variables. We build time-series data to account for
 the annual evolution of EPL, and use new data for unemployment insurance
 net replacement rates. Among other results, we find evidence of a positive
 (negative) effect of EPL (PMR) on employment performance as well as of
 substitution, rather than complementarity, between the two forms of
 regulation. 
Journal: Applied Economics 
Pages: 449-464 
Issue: 4 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903317367 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903317367 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:449-464




Template-Type: ReDIF-Article 1.0
Author-Name: Rosella Nicolini 
Author-X-Name-First: Rosella 
Author-X-Name-Last: Nicolini 
Title: Labour productivity in Spain: 1977-2002 
Abstract:
  This study examines the evolution of labour productivity across Spanish
 regions during the period from 1977 to 2002. Applying the kernel
 technique, we estimate the effects of the transition process on labour
 productivity and its main sources. We find that Spanish regions
 experienced a major convergence process in labour productivity mostly
 driven by human capital in the 1977-1993 period. Conversely, the dynamics
 of investment in physical capital appear to be neutral with respect to the
 transition dynamics of labour productivity. Finally, from 1995 to 2002, no
 dynamic processes seemed to have taken place. Spanish regions exhibit a
 persistent relative position with established convergence clubs: the human
 capital effect is less important and the investment in physical capital
 seems not to have a triggering effect on labour productivity growth. 
Journal: Applied Economics 
Pages: 465-485 
Issue: 4 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903427216 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427216 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:465-485




Template-Type: ReDIF-Article 1.0
Author-Name: Aekapol Chongvilaivan 
Author-X-Name-First: Aekapol 
Author-X-Name-Last: Chongvilaivan 
Author-Name: Jung Hur 
Author-X-Name-First: Jung 
Author-X-Name-Last: Hur 
Title: Outsourcing, labour productivity and wage inequality in the US: a primal approach 
Abstract:
  We investigate the linkages among outsourcing activities, labour
 productivity and wage inequality for skilled and unskilled labour by
 employing a primal approach that involves estimating a nested constant
 elasticity of substitution production function, using six-digit North
 American Industry Classification System US manufacturing industries from
 2002 to 2005. First, we find that general outsourcing and international
 outsourcing have a skill-biased impact on labour productivity. However,
 the skill-biased impact of general outsourcing on labour productivity is
 larger than that of international outsourcing. Second, we find that the
 wage gap between skilled and unskilled labour, which is defined as their
 marginal productivity gap, can be better explained by general outsourcing
 than by international outsourcing. These two results imply that the wage
 inequality of US manufacturing industries during 2002-2005 was mainly due
 to the skill-biased labour productivity effect of general outsourcing
 rather than that of international outsourcing. 
Journal: Applied Economics 
Pages: 487-502 
Issue: 4 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802360302 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360302 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:487-502




Template-Type: ReDIF-Article 1.0
Author-Name: Laura Romeu Gordo 
Author-X-Name-First: Laura 
Author-X-Name-Last: Romeu Gordo 
Title: Compression of morbidity and the labour supply of older people 
Abstract:
  This article tests whether there is evidence of compression of morbidity
 using Health and Retirement Study (HRS) data and analyses the effects of
 this on the labour supply of older people. We find younger cohorts to
 suffer less from functional problems than older cohorts at given ages.
 Furthermore, we observe that instrumentalized disability has a negative
 effect on labour force participation. According to the cohort analysis and
 the multivariate analysis, it can be concluded that individuals will be
 able to work longer because of the delay in the onset of disability
 problems. 
Journal: Applied Economics 
Pages: 503-513 
Issue: 4 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802599941 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599941 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:503-513




Template-Type: ReDIF-Article 1.0
Author-Name: Lester Hadsell 
Author-X-Name-First: Lester 
Author-X-Name-Last: Hadsell 
Title: Inefficiency in deregulated wholesale electricity markets: the case of the New England ISO 
Abstract:
  The efficiency of the New England Independent System Operator electricity
 market is examined. Using peak hour prices from March 2003 to February
 2007, significant differences between Day Ahead (DA) and spot prices are
 found, indicating that profitable arbitrage opportunities existed in the
 DA market. It is also found that persistence of price volatility is higher
 in the DA market, indicating that information is not incorporated into DA
 prices as quickly as it is in the spot market. 
Journal: Applied Economics 
Pages: 515-525 
Issue: 5 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802584943 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584943 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:515-525




Template-Type: ReDIF-Article 1.0
Author-Name: Koon Nam Lee 
Author-X-Name-First: Koon Nam 
Author-X-Name-Last: Lee 
Title: Forecasting long-haul tourism demand for Hong Kong using error correction models 
Abstract:
  Forecasting accuracy is particularly important when forecasting tourism
 demand on account of the perishable nature of the product. This study
 compares a range of forecasting models in the context of predicting annual
 tourist flows into Hong Kong from the major long-haul markets of the US,
 the UK, Germany and major short-haul markets of China, Japan and Taiwan.
 Econometric forecasting models considered included Error Correction Models
 (ECMs) based on Permanent Income-Life Cycle (PI-LC) hypothesis (PI-LC ECM)
 and alternative cointegration approaches: Engle and Granger (1987),
 Johansen (1988), and Ordinary Least Square (OLS) approaches. Both
 Autoregressive Integrated Moving Average (ARIMA) and no change model
 (hereafter NAIVE) models are used as a benchmark time series model for
 accuracy comparisons. It was hypothesized that PI-LC ECM is a better
 forecasting model particularly for long-haul tourism demand. The objective
 of this article is to investigate whether the application of PI-LC ECM
 could improve the forecasting performance of econometric models relative
 to time series models. The forecasting results indicate that the PI-LC ECM
 based on the Engle-Granger (1987) approach produces more accurate
 forecasts than other alternative forecasting models for all long-haul
 markets based on Mean Absolute Error (MAE) and Root Mean Square Error
 (RMSE) criteria. Overall, PI-LC ECMs produce better forecasts of tourism
 demand than the OLS, ARIMA and NAIVE models for all origin markets and all
 time horizons. 
Journal: Applied Economics 
Pages: 527-549 
Issue: 5 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802599743 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599743 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:527-549




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Author-Name: Artur Tamazian 
Author-X-Name-First: Artur 
Author-X-Name-Last: Tamazian 
Author-Name: Krishna Chaitanya Vadlamannati 
Author-X-Name-First: Krishna Chaitanya 
Author-X-Name-Last: Vadlamannati 
Title: Growth effects of a comprehensive measure of globalization with country-specific time series data 
Abstract:
  Many studies have estimated the growth effects of globalization where
 globalization was measured with a few economic variables, ignoring its
 social and political dimensions. Recently, Dreher (2006) has developed a
 comprehensive measure of globalization with several variables from the
 economic, political and social sectors. He showed, with the panel data
 methods, that globalization has positive growth effect implying that
 countries with higher globalization grow faster. We argue that 5-year
 average growth rates, used in many panel data studies, are inadequate
 proxies for the unobservable Steady State Growth Rate (SSGR). Using the
 Dreher indices, we extend the Solow (1956) model to derive
 country-specific estimates of SSGRs for Singapore, Malaysia, Thailand,
 India and the Philippines. Our results show that countries with higher
 levels of globalization have higher SSGRs but the growth effects on SSGRs
 are smaller than in many studies. 
Journal: Applied Economics 
Pages: 551-568 
Issue: 5 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802534476 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802534476 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:551-568




Template-Type: ReDIF-Article 1.0
Author-Name: Rose Cunningham 
Author-X-Name-First: Rose 
Author-X-Name-Last: Cunningham 
Author-Name: Ilan Kolet 
Author-X-Name-First: Ilan 
Author-X-Name-Last: Kolet 
Title: Housing market cycles and duration dependence in the United States and Canada 
Abstract:
  Housing wealth is a large component of households' total wealth and plays
 an important role in aggregate business cycles. In this article, we
 explore data on real house price cycles at the aggregate level and city
 level for the US and Canada. Using a panel of 137 cities, we examine the
 duration and characteristics of housing market cycles in North America. We
 find that North American housing cycles are long, averaging 5 years of
 expansion and 4 years of contraction. We estimate a discrete time survival
 model with a probit specification for house price expansions and
 contractions. This model allows us to test for duration dependence. We
 find that US housing market expansions have positive duration dependence
 since their exit probabilities increase with duration, while contractions
 seem to have no duration dependence. Canadian house price cycles did not
 exhibit duration dependence. Standard determinants of house prices
 (interest rates, income and population growth) are included as controls. 
Journal: Applied Economics 
Pages: 569-586 
Issue: 5 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802584927 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584927 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:569-586




Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Ho Chiu 
Author-X-Name-First: Yung-Ho 
Author-X-Name-Last: Chiu 
Author-Name: Yu-Chuan Chen 
Author-X-Name-First: Yu-Chuan 
Author-X-Name-Last: Chen 
Author-Name: Xue-Jie Bai 
Author-X-Name-First: Xue-Jie 
Author-X-Name-Last: Bai 
Title: Efficiency and risk in Taiwan banking: SBM super-DEA estimation 
Abstract:
  In this study we adopt the two Data Envelopment Analysis (DEA) methods,
 including Banker-Charnes-Cooper (BCC) and Slacks-based Measure (SBM) super
 efficiency, to investigate whether a bank's technical efficiency index's
 results, incorporating account risk and not incorporating account risk,
 differ significantly. The information is obtained from 43 Taiwanese banks
 for the period 1998 to 2002. We also employ the nonradial and slacks-based
 Malmquist Total Factor Productivity (TFP) index to measure the impact of
 productivity change on the panel data. Our empirical results from the DEA
 approach are summarized as follows: (1) Loan quality factors have an
 impact on a bank's efficiency. In general, the bank with a higher degree
 of problem loans drops down its efficiency by incorporating account risk;
 however, the bank with a lower degree of problem loans increases its
 efficiency by incorporating account risk. (2) Super efficiency provides a
 good framework for ranking efficient units. (3) Based on the nonradial and
 slacks-based Malmquist TFP index, we find that bank productivity has
 increased and technical change has improved. (4) In Taiwan, bank with a
 higher performance will be more secure. 
Journal: Applied Economics 
Pages: 587-602 
Issue: 5 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802599750 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599750 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:587-602




Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Eliason 
Author-X-Name-First: Marcus 
Author-X-Name-Last: Eliason 
Title: Income after job loss: the role of the family and the welfare state 
Abstract:
  That displaced workers suffer long-lasting earnings losses is a stylized
 fact, raising the question whether these losses are replaced by other
 means. For married men, increased labour supply by the wife may be one
 way. Another possibility is that the public welfare system offsets the
 same losses. I used a Swedish longitudinal data set containing married
 couples where the husband was either employed or made redundant in 1987 by
 an establishment closure. There was no evidence that husbands' job loss
 positively affected wives' annual earnings. Although husbands' utilization
 of unemployment insurance increased significantly, government transfers
 including also sickness insurance, disability insurance and means-tested
 social benefits, did not fully replace husbands' long-run earnings losses.
 Hence, displaced workers seem to suffer also from long-lasting losses in
 family income, which in many respects is a better measure of economic
 welfare than individual earnings or wages. 
Journal: Applied Economics 
Pages: 603-618 
Issue: 5 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802584968 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584968 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:603-618




Template-Type: ReDIF-Article 1.0
Author-Name: Tristan Masters 
Author-X-Name-First: Tristan 
Author-X-Name-Last: Masters 
Author-Name: Roslyn Russell 
Author-X-Name-First: Roslyn 
Author-X-Name-Last: Russell 
Author-Name: Robert Brooks 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brooks 
Title: The demand for creative arts in regional Victoria, Australia 
Abstract:
  A healthy creative arts industry can contribute significantly to the
 economic and social fabric of a community. Unfortunately, regional areas
 often suffer from a lack of supply and demand for the creative arts. This
 article explores the demand for the creative arts in three regional
 locations in Victoria, Australia, using three broad dimensions of demand:
 attitudes towards the arts; frequency of participation in the arts and
 level of expenditure on the arts. The analysis of demand patterns uses the
 general modelling approach of Levy-Garboua and Montmarquette (1996) as a
 basis and makes use of the ordered probit class of models for its
 statistical analysis. The study confirms that individual levels of demand
 are contingent on a range of demographic characteristics and also
 identifies factors such as festival attendance and increased past creative
 arts expenditure as being important determinants of demand for the arts. 
Journal: Applied Economics 
Pages: 619-629 
Issue: 5 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802584976 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584976 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:619-629




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Rosa Borges 
Author-X-Name-First: Maria Rosa 
Author-X-Name-Last: Borges 
Title: Random walk tests for the Lisbon stock market 
Abstract:
  This article reports the results of tests on the weak-form market
 efficiency applied to the PSI-20 index prices of the Lisbon stock market
 from January 1993 to December 2006. As an emerging stock market, it is
 unlikely that it is fully information-efficient, but we show that the
 level of weak-form efficiency has increased in recent years. We use a
 serial correlation test, a runs test, an Augmented Dickey-Fuller (ADF)
 test and the multiple variance ratio test proposed by Lo and MacKinlay
 (1988) for the hypothesis that the stock market index follows a random
 walk. Nontrading or infrequent trading is not an issue because the PSI-20
 includes only the 20 most traded shares. The tests are performed using
 daily, weekly and monthly returns for the whole period and for five
 sub-periods which reflect different trends in the market. We find mixed
 evidence, but on the whole, our results show that the Portuguese stock
 market index has been approaching a random walk behaviour since 2000, with
 a decrease in the serial dependence of returns. 
Journal: Applied Economics 
Pages: 631-639 
Issue: 5 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802584935 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584935 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:631-639




Template-Type: ReDIF-Article 1.0
Author-Name: Joakim Westerlund 
Author-X-Name-First: Joakim 
Author-X-Name-Last: Westerlund 
Author-Name: Fredrik Wilhelmsson 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Wilhelmsson 
Title: Estimating the gravity model without gravity using panel data 
Abstract:
  This article examines the effects of zero trade on the estimation of the
 gravity model using both simulated and real data with a panel structure,
 which is different from the more conventional cross-sectional structure.
 We begin by showing that the usual log-linear estimation method can result
 in highly deceptive inference when some observations are zero. As an
 alternative approach, we suggest using the poisson fixed effects
 estimator. This approach eliminates the problems of zero trade, controls
 for heterogeneity across countries, and is shown to perform well in small
 samples. 
Journal: Applied Economics 
Pages: 641-649 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599784 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599784 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:641-649




Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Ricciarelli 
Author-X-Name-First: Matteo 
Author-X-Name-Last: Ricciarelli 
Title: Investment choice and asset allocation of Italian households: the discrete-continuous approach 
Abstract:
  Financial and monetary policies are considered to be effective depending
 on the reaction of financial markets which are increasingly populated by
 households. In this article, from intertemporal settings, I derive a
 Financial Almost Ideal (FAI) Demand System and I estimate it by
 highlighting the determinants of both limited participation to financial
 markets and asset substitutability/complementarity in the allocating
 stage. Finally, the wealth elasticities provide some further insights on
 the low diffusion of the newer and more complex financial instruments
 across Italian households. 
Journal: Applied Economics 
Pages: 651-662 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599800 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599800 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:651-662




Template-Type: ReDIF-Article 1.0
Author-Name: Heru Margono 
Author-X-Name-First: Heru 
Author-X-Name-Last: Margono 
Author-Name: Subhash Sharma 
Author-X-Name-First: Subhash 
Author-X-Name-Last: Sharma 
Author-Name: Kevin Sylwester 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Sylwester 
Author-Name: Usama Al-Qalawi 
Author-X-Name-First: Usama 
Author-X-Name-Last: Al-Qalawi 
Title: Technical efficiency and productivity analysis in Indonesian provincial economies 
Abstract:
  This article estimates inefficiency and Total Factor Productivity (TFP)
 across Indonesian provinces from 1993 to 2000. Indonesia is a large
 emerging market economy, but provinces within the country (due to the
 island structure of the country) are more distinct from one another
 compared to other countries. We use a stochastic frontier methodology to
 estimate inefficiency and TFP. We find that TFP fell by an average rate of
 7.5% across provinces due to the decrease in technical efficiency. In
 fact, the majority of output growth within Indonesia is explained by the
 accumulation of inputs. In this sense, economic growth within Indonesia
 does not appear to be sustainable without reversing these trends. 
Journal: Applied Economics 
Pages: 663-672 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599834 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599834 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:663-672




Template-Type: ReDIF-Article 1.0
Author-Name: Faizul Haque 
Author-X-Name-First: Faizul 
Author-X-Name-Last: Haque 
Author-Name: Thankom Gopinath Arun 
Author-X-Name-First: Thankom Gopinath 
Author-X-Name-Last: Arun 
Author-Name: Colin Kirkpatrick 
Author-X-Name-First: Colin 
Author-X-Name-Last: Kirkpatrick 
Title: Corporate governance and capital structure in developing countries: a case study of Bangladesh 
Abstract:
  This paper investigates the influence of firm-level corporate governance
 on the capital structure pattern of non-financial listed firms, using a
 case study of Bangladesh. The agency theory suggests that better corporate
 governance will reduce agency costs and improve investor confidence, which
 in turn will enhance the ability of a firm to gain access to equity
 finance, reducing dependence on debt finance. Conversely, the controlling
 shareholders of poorly governed firms are likely to prefer debt, in order
 to retain absolute ownership and control rights. The OLS regression
 framework uses a questionnaire-survey based Corporate Governance Index
 (CGI). The study results seem to support agency theory, with a
 statistically significant inverse relationship between corporate
 governance quality and the total as well as long-term debt ratios. 
Journal: Applied Economics 
Pages: 673-681 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599909 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599909 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:673-681




Template-Type: ReDIF-Article 1.0
Author-Name: Fethi O&#x11f;unc 
Author-X-Name-First: Fethi 
Author-X-Name-Last: O&#x11f;unc 
Author-Name: Inci Batmaz 
Author-X-Name-First: Inci 
Author-X-Name-Last: Batmaz 
Title: Estimating the neutral real interest rate in an emerging market economy 
Abstract:
  This study estimates the neutral real interest rate and output gap
 jointly under two different multivariate unobserved components models. In
 the analyses, Kalman filter is applied to a small-scale macroeconomic
 model of the Turkish economy to estimate the unobserved variables for the
 period 1989 to 2005. In addition, two alternative specifications for
 neutral real interest rate are exploited in the analyses. The first model
 uses a simple random walk model for the neutral rate, whereas the second
 one employs more structural specification, which specifically links the
 neutral rate with the trend growth rate and the long-term course of the
 risk premium by adapting the model proposed by Laubach and Williams (2003)
 to allow for small open economy consideration. Model evaluations clearly
 indicate the use of more structural specification against random walk
 specification. Results point out that the variation in the long-term
 course of the risk premium could be an important determinant of the
 neutral real interest rate in Turkey. Though there is relatively high
 uncertainty surrounding the neutral rate estimates to use them directly in
 the policy-making process, estimates appear to be very useful for ex post
 monetary policy evaluations. 
Journal: Applied Economics 
Pages: 683-693 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599768 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599768 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:683-693




Template-Type: ReDIF-Article 1.0
Author-Name: Koi Nyen Wong 
Author-X-Name-First: Koi Nyen 
Author-X-Name-Last: Wong 
Author-Name: Tuck Cheong Tang 
Author-X-Name-First: Tuck Cheong 
Author-X-Name-Last: Tang 
Title: Exchange rate variability and the export demand for Malaysia's semiconductors: an empirical study 
Abstract:
  This article examines the effects of exchange rate variability on export
 demand for semiconductors, which is the largest sub-sector of electronics
 industry in Malaysia as reported by Malaysian Industrial Development
 Authority (MIDA, 2004). The empirical results, which are estimated based
 on the Johansen's multivariate cointegration tests and error-correction
 model, suggest that there is a unique long-run relationship among
 quantities of export, relative price, real foreign income and real
 exchange rate variability. The major finding of this article is that the
 variability of real exchange rate has some effect on semiconductor exports
 in both the long run and the short run. In the light of rapid advances in
 technology in the global markets for electronics products, the findings
 are useful to policy makers for the design and target of appropriate
 exchange rate and industrial policies to enhance the export
 competitiveness of semiconductor industry. 
Journal: Applied Economics 
Pages: 695-706 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599917 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599917 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:695-706




Template-Type: ReDIF-Article 1.0
Author-Name: Geir W&#xe6;hler Gustavsen 
Author-X-Name-First: Geir W&#xe6;hler 
Author-X-Name-Last: Gustavsen 
Author-Name: Kyrre Rickertsen 
Author-X-Name-First: Kyrre 
Author-X-Name-Last: Rickertsen 
Title: The effects of taxes on purchases of sugar-sweetened carbonated soft drinks: a quantile regression approach 
Abstract:
  The consumption of large quantities of Sugar-Sweetened Carbonated Soft
 Drinks (SSCSD) may lead to obesity, which is associated with health
 problems such as diabetes, cardiac diseases and mental health problems.
 The effects of increasing the Value Added Tax (VAT) on purchases of SSCSD
 are estimated. Obesity is more likely among heavy drinkers than among
 light or moderate drinkers. Therefore, the effects on high- and
 low-purchasing households are estimated by using Quantile Regressions
 (QRs) on Norwegian household purchase data. Since many households did not
 purchase SSCSD during each survey period, censored as well as ordinary QRs
 are used. Our results suggest that a VAT increase from 13 to 25% will have
 the highest percentage effect among low-purchasing households but the
 absolute effect is highest among high-purchasing households.
 Low-purchasing households will reduce their purchases by about 5 L while
 the reduction is almost 20 L among high-purchasing households. However,
 the effects among high-purchasing households are not statistically
 significant from zero. A reduction of 5 L corresponds ceteris paribus to
 an annual reduction of about 0.3 kg of body weight. 
Journal: Applied Economics 
Pages: 707-716 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599776 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599776 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:707-716




Template-Type: ReDIF-Article 1.0
Author-Name: Joo-Suk Lee 
Author-X-Name-First: Joo-Suk 
Author-X-Name-Last: Lee 
Author-Name: Seung-Hoon Yoo 
Author-X-Name-First: Seung-Hoon 
Author-X-Name-Last: Yoo 
Author-Name: Seung-Jun Kwak 
Author-X-Name-First: Seung-Jun 
Author-X-Name-Last: Kwak 
Title: Modelling R&D expenditure data with zero observations: two-equation model 
Abstract:
  This article attempts to analyse the determinants of firms' Research and
 Development (R&D) expenditures in Korea by considering the business
 environment after the economic crisis in 1997. In addition, to take into
 account zero R&D expenditure, this article employed a two-equation model
 unlike models used in other studies. This method incorporates a two-level
 decision structure: the participation decision and the decision on the
 amount to spend once the issue of participation has been decided.
 According to the estimation results, while the proposition that larger
 firms are more active in R&D is true, the proposition that firms that
 possess market power are more active in R&D is not true for Korea.
 Technical cooperation among Korean firms seems to be less active than in
 other countries. In addition, the results indicate that foreign investment
 stimulates the firms' R&D expenditure. Furthermore, a number of factors
 were found to play a role in promoting firms' R&D activities: the external
 conditions of the firms' R&D activities, including the location, other
 firms' R&D activities in the same industry, support from the government
 and technical support from research institutes. 
Journal: Applied Economics 
Pages: 717-727 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599792 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599792 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:717-727




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ping Chang 
Author-X-Name-First: Chun-Ping 
Author-X-Name-Last: Chang 
Author-Name: Chien-Chiang Lee 
Author-X-Name-First: Chien-Chiang 
Author-X-Name-Last: Lee 
Author-Name: Jia-Hsi Weng 
Author-X-Name-First: Jia-Hsi 
Author-X-Name-Last: Weng 
Title: Is the secularization hypothesis valid? A panel data assessment for Taiwan 
Abstract:
  The secularization thesis is based on the idea that a country becomes
 more secular as it becomes richer and more industrialized. In order to
 investigate whether this hypothesis is valid, we examine the relationship
 between religion in Taiwan and economic development across 23 counties by
 adopting the panel data approach for the period 1998 to 2003. We select
 six religious activity proxy variables and five economic development
 variables in a cross-county panel data framework. The evidence indicates
 that the ratio of females to males has a significantly positive effect and
 that the literacy rate and population density each have a significantly
 negative effect on the religious variables. Finally, except for the
 Christian culture, the unemployment rate has a positive effect on the
 religious variables. Our findings thus support the view that the religious
 secularization hypothesis is valid in Taiwan. 
Journal: Applied Economics 
Pages: 729-745 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599826 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599826 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:729-745




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Williams 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Williams 
Author-Name: Nicolas Peypoch 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Peypoch 
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Title: The Luenberger indicator and productivity growth: a note on the European savings banks sector 
Abstract:
  We employ the Luenberger productivity indicator to estimate productivity
 growth and its decomposition into technical change and efficiency change
 components for savings banks sectors in 10 EU countries between 1996 and
 2003. The Luenberger indicator requires less restrictive assumptions than
 standard nonparametric productivity indexes, and it allows the assumption
 of profit maximization to be made for sample firms. We estimate average
 productivity growth in the savings banks sector to be 2.78% per annum and
 driven almost entirely by technical change. Whilst the general results
 confirm earlier findings, this study is one of the earliest to identify
 cross-border differences in productivity growth in the savings banks
 sector. 
Journal: Applied Economics 
Pages: 747-755 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599859 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599859 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:747-755




Template-Type: ReDIF-Article 1.0
Author-Name: Joao Dias 
Author-X-Name-First: Joao 
Author-X-Name-Last: Dias 
Author-Name: Vitor Mendes Magrico 
Author-X-Name-First: Vitor Mendes 
Author-X-Name-Last: Magrico 
Title: The impact of resource conditions and environmental uncertainty on inter-firm alliance strategies 
Abstract:
  The resource dependence theory and the resource-based view have been put
 forward in order to explain inter-firm alliance strategies. According to
 these approaches, the main driver for alliance formation is the internal
 resource condition of the firm and the need to acquire external resources.
 We argue that resource motivation is moderated by perceived environmental
 uncertainty. First, we conceptualize how perceived environmental
 uncertainty and resource conditions independently affect the probability
 of firms to develop alliance strategies. Then, we analyse how the role of
 resource conditions is affected by environmental uncertainty. Finally, we
 test our point of view using a sample of Portuguese firms. 
Journal: Applied Economics 
Pages: 757-765 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599867 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599867 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:757-765




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chung Chang 
Author-X-Name-First: Ming-Chung 
Author-X-Name-Last: Chang 
Author-Name: Jin-Li Hu 
Author-X-Name-First: Jin-Li 
Author-X-Name-Last: Hu 
Title: Inconsistent preferences in environmental protection investment and the central government's optimal policy 
Abstract:
  Environmental protection plans cannot succeed without full cooperation
 among related units. However, inconsistent investment preferences toward
 environmental protection increase the damage to the environment. This
 article employs the contract mechanism to analyse environmental protection
 effects when the central government directly subsidizes the local
 governments. The results reveal that subsidies from the central government
 are not only unable to solve the problem of the inconsistent investment
 preferences among the central and local governments but also induce the
 free-riding behaviour of local governments. Because of the free-riding
 behaviour of the local governments, there is no such equilibrium in which
 the central government prefers the sequential investment mode while the
 local governments prefer the simultaneous investment mode. 
Journal: Applied Economics 
Pages: 767-772 
Issue: 6 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599891 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599891 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:767-772




Template-Type: ReDIF-Article 1.0
Author-Name: William Crowder 
Author-X-Name-First: William 
Author-X-Name-Last: Crowder 
Author-Name: Pieter de Jong 
Author-X-Name-First: Pieter 
Author-X-Name-Last: de Jong 
Title: Does investment lead to greater output? A panel error-correction model analysis 
Abstract:
  In this study we attempt to determine the direction of causality between
 fixed investment spending and output. A literature has been developed
 which examines this causal structure. The results have been anything but
 consistent. De Long and Summers (1991) find strong evidence of the
 traditional causal relationship from investment to output growth. But
 Blomstrom et al. (1996) find just the opposite. One problem with these
 studies is that each fails to recognize the implied long-run relationship
 between fixed investment and output such that a Vector Autoregressive
 Representation (VAR) in these variables should be modelled as an error
 correction mechanism. We employ panel cointegration techniques on data
 from the Penn World Tables 6.1 covering 98 countries over 40 years. Our
 results suggest that investment and output are cointegrated and that the
 direction of causality generally runs in both directions. However, we find
 that in African- and low-income nations the direction of causality runs
 from output to investment, supportive of the findings by Blomstrom et al.
 (1996). This pattern is found in the short run as well as in the long run. 
Journal: Applied Economics 
Pages: 773-785 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599982 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599982 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:773-785




Template-Type: ReDIF-Article 1.0
Author-Name: Jennifer Rice 
Author-X-Name-First: Jennifer 
Author-X-Name-Last: Rice 
Title: The influence of managed care on generic prescribing rates: an analysis of HMO physicians 
Abstract:
  Retail expenditures on prescription drugs continue to grow annually by
 double digits, while the share of prescriptions dispensed as generics
 remains relatively constant. Efforts to curtail rising drug expenditures
 have been exhibited by Managed Care Organizations (MCOs), yet drug
 expenditures continue to rise. Using the National Ambulatory Medical Care
 Survey (NAMCS) for 1997-2000, this study examines how managed care,
 specifically Health Maintenance Organizations (HMOs), influence the
 physician's decision to prescribe the generic version of a multi-source
 drug. The findings show that HMO physicians are not significantly more
 likely to prescribe generic drugs than non-HMO physicians. Among HMO
 physicians, different cost reduction tools effect generic prescribing
 behaviour in different ways, with, the size of the effect depending on the
 patient and physician relationship with the HMO. 
Journal: Applied Economics 
Pages: 787-796 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600061 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600061 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:787-796




Template-Type: ReDIF-Article 1.0
Author-Name: Max Nielsen 
Author-X-Name-First: Max 
Author-X-Name-Last: Nielsen 
Author-Name: Frank Jensen 
Author-X-Name-First: Frank 
Author-X-Name-Last: Jensen 
Author-Name: Jari Setala 
Author-X-Name-First: Jari 
Author-X-Name-Last: Setala 
Author-Name: Jarno Virtanen 
Author-X-Name-First: Jarno 
Author-X-Name-Last: Virtanen 
Title: Causality in demand: a co-integrated demand system for trout in Germany 
Abstract:
  This article focuses on causality in demand. A methodology where
 causality is imposed and tested within an empirical co-integrated demand
 model, not prespecified, is suggested. The methodology allows different
 causality of different products within the same demand system. The
 methodology is applied to fish demand. On the German market for farmed
 trout and substitutes, it is found that supply sources, i.e. aquaculture
 and fishery, are not the only determinant of causality. Storing, tightness
 of management and aggregation level of integrated markets might also be
 important. The methodological implication is that more explicit focus on
 causality in demand analyses provides improved information. The results
 suggest that frozen trout forms part of a large European whitefish market,
 where prices of fresh trout are formed on a relatively separate market.
 Redfish is a substitute on both markets. The policy implication is that
 increased production of trout causes a downward pressure on fresh trout
 prices, but frozen trout prices remain relatively unaffected. 
Journal: Applied Economics 
Pages: 797-809 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600038 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:797-809




Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Weiss 
Author-X-Name-First: Matthias 
Author-X-Name-Last: Weiss 
Author-Name: Alfred Garloff 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Garloff 
Title: Skill-biased technological change and endogenous benefits: the dynamics of unemployment and wage inequality 
Abstract:
  In this article, we study the effect of skill-biased technological change
 on unemployment and wage inequality in the presence of a link between
 social benefits and average income. In this case, an increase in the
 productivity of skilled workers, and hence their wage, leads to an
 increase in average income and hence in benefits. The increased fallback
 income, in turn, makes unskilled workers ask for higher wages. As higher
 wages are not justified by corresponding productivity increases,
 unemployment rises. Generally, we show that skill-biased technological
 change leads to increasing unemployment of the unskilled and to a
 moderately increasing wage inequality when benefits are endogenous. The
 model provides a theoretical explanation for diverging dynamics in wage
 inequality and unemployment under different social benefits regimes.
 Analysing the social legislation in 14 countries, we find that benefits
 are linked to the evolution of average income in Continental Europe but
 not in the US and the UK. Given this institutional difference, our model
 predicts that skill-biased technological change leads to rising
 unemployment in Continental Europe and rising wage inequality in the US
 and the UK. 
Journal: Applied Economics 
Pages: 811-821 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599933 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599933 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:811-821




Template-Type: ReDIF-Article 1.0
Author-Name: Felicitas Nowak-Lehmann D. 
Author-X-Name-First: Felicitas 
Author-X-Name-Last: Nowak-Lehmann D. 
Author-Name: Dierk Herzer 
Author-X-Name-First: Dierk 
Author-X-Name-Last: Herzer 
Author-Name: Sebastian Vollmer 
Author-X-Name-First: Sebastian 
Author-X-Name-Last: Vollmer 
Author-Name: Inmaculada Martinez-Zarzoso 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Martinez-Zarzoso 
Title: Modelling the dynamics of market shares in a pooled data setting: econometric and empirical issues 
Abstract:
  The objective of this article is twofold. First, it is to study the
 applicability of the widely used Autoregressive Distributed Lag Model
 (ARDL) in a pooled data setting. Second, it is to analyse Chile's market
 shares in the EU during the period 1988 to 2002, pointing to application
 problems that might jeopardize the model and searching for estimation
 methods that deal with the problem of inter-temporal and cross-sectional
 correlation of the disturbances. To estimate the coefficients of the ARDL
 model, Feasible Generalized Least Squares (FGLS) is utilized within the
 Three-Stage Least Squares (3SLS) and the nonstandard Generalized Method of
 Moments (GMM) frameworks. A computation of errors is added to highlight
 the susceptibility of the model to problems related to the underlying
 model assumptions. 
Journal: Applied Economics 
Pages: 823-835 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599925 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599925 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:823-835




Template-Type: ReDIF-Article 1.0
Author-Name: James Gander 
Author-X-Name-First: James 
Author-X-Name-Last: Gander 
Title: Equity valuation under Bull and Bear market regimes in South East Asia firms: a switching regression approach 
Abstract:
  A switching regression approach is used to analyse the market equity
 value of firms in the three South East Asia countries with a comparison to
 Japan. Two regimes are used to optimally sort the firms in a given country
 based on a switching function using profit rate (net income to book
 equity) as its variable. The regimes are identified as a Bear security
 market or a Bull security market depending on the value of the profit
 rate. Two financial ratios are used in the regime regressions. It was
 found that the optimum scaled switch point separating the Bulls from the
 Bears for the countries was a positive profit rate ranging between 6 and
 24%. The notion that a zero or negative profit rate identifies a Bear
 market is not supported. In general, the results across countries and for
 the long-term debt ratio were quite consistent. The post-Asian financial
 crisis of 1997 had a depressing effect on firm market equity values,
 regardless of the market type and the country. The Bulls and the Bears are
 not cousins when it comes to their different reactions to the long-term
 debt ratio and their different, relative, adverse responses to the
 financial crisis. 
Journal: Applied Economics 
Pages: 837-844 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599966 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599966 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:837-844




Template-Type: ReDIF-Article 1.0
Author-Name: Kristian Jonsson 
Author-X-Name-First: Kristian 
Author-X-Name-Last: Jonsson 
Title: Time-specific disturbances in a panel stationarity test 
Abstract:
  In this article, we investigate the performance of a panel data
 stationarity test when cross-sectional correlation is modelled by a
 time-specific factor. Size distortions, that occur especially when the
 number of cross sections is small, are documented. To eliminate these
 distortions, a new set of critical values is supplied. When investigating
 the rejection frequency under the alternative hypothesis, it is found that
 the panel data stationarity test that uses the supplied critical values
 maintain good power characteristics even when only a subset of the
 cross-sectional units have a unit root. 
Journal: Applied Economics 
Pages: 845-853 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802599958 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599958 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:845-853




Template-Type: ReDIF-Article 1.0
Author-Name: Eva Moreno-Galbis 
Author-X-Name-First: Eva 
Author-X-Name-Last: Moreno-Galbis 
Author-Name: Francois-Charles Wolff 
Author-X-Name-First: Francois-Charles 
Author-X-Name-Last: Wolff 
Title: Evidence on new technologies and wage inequality in France 
Abstract:
  Using individual data from the French Labour Force Survey and the
 Complementary Survey on Working Conditions for 1998, we analyse earnings
 inequalities along the wage distribution between workers using novel
 Information and Communication Technologies (ICT) at their job and those
 not using them. We estimate quantile regressions with technological
 dummies and carry out a decomposition analysis, both at the aggregate
 level and by occupations. At the aggregate level, most of the wage gap
 between both populations is explained by the divergence in their labour
 characteristics. In jobs where ICT are not very diffused, the
 technological premium is larger than in jobs characterized by a large
 presence of novel technologies. Whereas in the former type of jobs, the
 technological premium is mainly justified by a divergence in the labour
 market characteristics between ICT users and nonusers, in positions
 characterized by a wide presence of novel technologies the technological
 premium responds rather to a divergence in the returns to identical
 characteristics. 
Journal: Applied Economics 
Pages: 855-872 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600004 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600004 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:855-872




Template-Type: ReDIF-Article 1.0
Author-Name: Takashi Matsuki 
Author-X-Name-First: Takashi 
Author-X-Name-Last: Matsuki 
Author-Name: Ryoichi Usami 
Author-X-Name-First: Ryoichi 
Author-X-Name-Last: Usami 
Title: China's regional convergence in panels with multiple structural breaks 
Abstract:
  This study investigates the existence of regional convergence of per
 capita outputs in China from 1952 to 2004, particularly focusing on
 considering the presence of multiple structural breaks in the
 provincial-level panel data. First, the panel-based unit root test that
 allows for the occurrence of multiple breaks at various break dates across
 provinces is developed; this test is based on the p-value combination
 approach suggested by Fisher (1932). Next, the test is applied to China's
 provincial real per capita outputs to examine the regional convergence in
 China. To obtain the p-values of unit root tests for each province, which
 are combined to construct the panel unit root test, this study assumes
 three Data Generating Processes (DGPs): a driftless random walk process,
 an Autoregressive Moving Average (ARMA) process and an Autoregression (AR)
 process with cross-sectionally dependent errors in Monte Carlo simulation.
 The results obtained from this study reveal that the convergence of the
 provincial per capita outputs exists in each of the three geographically
 classified regions-the Eastern, Central and Western regions-of China. 
Journal: Applied Economics 
Pages: 873-890 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600012 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:873-890




Template-Type: ReDIF-Article 1.0
Author-Name: Mats Wilhelmsson 
Author-X-Name-First: Mats 
Author-X-Name-Last: Wilhelmsson 
Author-Name: Rune Wigren 
Author-X-Name-First: Rune 
Author-X-Name-Last: Wigren 
Title: The robustness of the causal and economic relationship between construction flows and economic growth: evidence from Western Europe 
Abstract:
  Our main objective is to analyse whether we have a problem of parameter
 heterogeneity across countries and over time in the estimation of the
 relationship between infrastructure investments and economic growth. The
 research approach concerning causality and the estimating of the long-run
 equilibrium is based on the error-correction model. The problem of
 parameter heterogeneity is handled by the use of interaction terms. The
 result indicates that residential construction Granger causes Gross
 Domestic Product (GDP) in the short and long run and it seems likely that
 the interaction term indicating high unemployment do add some explanation
 power to the model. This is not true when it comes to infrastructural and
 other building construction and its impact on economic growth. A high
 housing stock per capita seems to reduce the short-run effect. This
 implies that residential construction seems to have a larger effect if the
 accumulated residential stock is on a low level. The speed of adjustment
 to long-run equilibrium differs considerably between a country with a low
 residential capital stock and a country with a high-capital stock.
 Moreover, high owner occupation rates seem to be associated with a
 stronger relationship between residential construction and economic
 growth. 
Journal: Applied Economics 
Pages: 891-900 
Issue: 7 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600020 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:891-900




Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Masakure 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Masakure 
Author-Name: John Cranfield 
Author-X-Name-First: John 
Author-X-Name-Last: Cranfield 
Author-Name: Spencer Henson 
Author-X-Name-First: Spencer 
Author-X-Name-Last: Henson 
Title: Factors affecting the incidence and intensity of standards certification evidence from exporting firms in Pakistan 
Abstract:
  This article explores the incidence and intensity of certification of
 Pakistani exporting firms across a range of quality assurance programs.
 Using firm-level data, the firm's certification status is modelled using
 Heckman's two-step procedure. The first-stage results using a probit model
 show that the likelihood of certification is determined by the sector, the
 firm's awareness of trade standards, the level to which the firm's markets
 are diversified, external pressure for certification and the firm's
 primary export market. The intensity of certification is treated as the
 number of standards a firm has invested in, which can be seen as ordered
 into distinct categories, such that an ordered probit model can be
 applied, correcting for sample selection bias. The results show that the
 number of standards to which a firm is certified is influenced by firm
 size, a firm's primary export markets, level of awareness of trade
 standards and level of market diversification. Overall, the results
 suggest that certification can be enhanced through increased private and
 institutional incentives, such as reducing transactions costs in the
 fisheries and agro-processing sectors, as well as increased regulatory
 enforcements in supply chains and support for raising the technical
 capacity of the sector. 
Journal: Applied Economics 
Pages: 901-915 
Issue: 8 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600103 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600103 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:901-915




Template-Type: ReDIF-Article 1.0
Author-Name: Nuno Alves 
Author-X-Name-First: Nuno 
Author-X-Name-Last: Alves 
Author-Name: Jose Brandao de Brito 
Author-X-Name-First: Jose Brandao de 
Author-X-Name-Last: Brito 
Author-Name: Sandra Gomes 
Author-X-Name-First: Sandra 
Author-X-Name-Last: Gomes 
Author-Name: Joao Sousa 
Author-X-Name-First: Joao 
Author-X-Name-Last: Sousa 
Title: The transmission of monetary policy and technology shocks in the euro area 
Abstract:
  This article analyses the response of a set of euro area macroeconomic
 variables to monetary policy and technology shocks based on structural
 Vector Auto-regressions (VARs). The data set runs from 1970:1 until 2006:4
 and includes a novel long-run series for hours worked per capita in the
 euro area. We find that real macroeconomic variables follow a hump-shaped
 response after monetary policy shocks and jump on impact after technology
 shocks. We also provide evidence that hours worked fall after a positive
 technology shock. These conclusions are robust to different sample periods
 and specifications of the variables. 
Journal: Applied Economics 
Pages: 917-927 
Issue: 8 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600186 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600186 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:917-927




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Fullerton 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Fullerton 
Author-Name: Osvaldo Miranda 
Author-X-Name-First: Osvaldo 
Author-X-Name-Last: Miranda 
Title: Borderplex brand name medicine price differences 
Abstract:
  Relatively high brand name pharmaceutical prices have led many US
 residents to cross the border into Mexico as 'medical tourists'. To
 examine the savings potentially available to consumers willing to cross
 into Mexico, data are collected and analysed for brand name prescription
 medicines sold in El Paso, Texas and Ciudad Juarez, Mexico. Retail
 pharmacy prices are generally lower on the south side of the border and
 substantial savings result for some medicines. For some products, however,
 shelf prices are lower on the north side of the border. 
Journal: Applied Economics 
Pages: 929-939 
Issue: 8 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600194 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600194 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:929-939




Template-Type: ReDIF-Article 1.0
Author-Name: Torben Schubert 
Author-X-Name-First: Torben 
Author-X-Name-Last: Schubert 
Author-Name: Hariolf Grupp 
Author-X-Name-First: Hariolf 
Author-X-Name-Last: Grupp 
Title: Tests and confidence intervals for a class of scientometric, technological and economic specialization ratios 
Abstract:
  In economic, scientometric and innovation research, often so-called
 specialization indices are used. These indices measure comparative
 strengths or weaknesses as well as specialization profiles of the
 observation units with respect to certain criteria, such as patenting and
 publication or trade activities. They allow question like: is Germany
 specialized in the export of motor vehicles? Or is the UK specialized in
 biotech patents? Unfortunately, little is known about their statistical
 properties, which makes valid inferencing difficult. In this article we
 prove asymptotic normality for a certain class of scientometric,
 technological and some economic, though nonmonetary, specialization
 indices. We provide asymptotic confidence intervals and demonstrate in an
 example how to obtain statistically sound results. We will also address
 the problem of normalization of these indicators. All procedures proposed
 are provided in an add on package for R statistical environment. 
Journal: Applied Economics 
Pages: 941-950 
Issue: 8 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600160 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600160 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:941-950




Template-Type: ReDIF-Article 1.0
Author-Name: Conchita D'Ambrosio 
Author-X-Name-First: Conchita 
Author-X-Name-Last: D'Ambrosio 
Author-Name: Joseph Deutsch 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Deutsch 
Author-Name: Jacques Silber 
Author-X-Name-First: Jacques 
Author-X-Name-Last: Silber 
Title: Multidimensional approaches to poverty measurement: an empirical analysis of poverty in Belgium, France, Germany, Italy and Spain, based on the European panel 
Abstract:
  This article has three goals. First, we wish to compare three
 multidimensional approaches to poverty and check to what extent they
 identify the same households as poor. Second, we aim at better
 understanding the determinants of poverty by estimating logit regressions
 with five categories of explanatory variables: size of the household, age
 of the head of the household, her gender, marital status and status at
 work. Third, we introduce a decomposition procedure proposed recently in
 the literature, the so-called Shapley decomposition, in order to determine
 the exact marginal impact of each of the categories of explanatory
 variables. Our empirical analysis is based on data made available by the
 European Community Household Panel (ECHP). We used its third wave and
 selected five countries: Belgium, France, Germany, Italy and Spain. 
Journal: Applied Economics 
Pages: 951-961 
Issue: 8 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600129 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600129 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:951-961




Template-Type: ReDIF-Article 1.0
Author-Name: Hong-Kyun Kim 
Author-X-Name-First: Hong-Kyun 
Author-X-Name-Last: Kim 
Title: Does sample selection bias affect the effect of family background on the returns to schooling? Evidence from Korea 
Abstract:
  This article examines the effect of family background on the returns to
 schooling in Korea. In doing so, sample selection bias is controlled, as
 the probability of being employed is affected by the schooling of family
 members. The results of this study are different from previous studies,
 which did not consider sample selection bias. While the effect of family
 background on the returns to schooling was obvious in previous studies, it
 is weakened with the control of sample selection bias. This phenomenon is
 particularly strong for the wife. Moreover, controlling sample selection
 bias increases the downward bias due to measurement error. Thus it is
 concluded from these findings that sample selection bias should be
 controlled to accurately estimate the effect of family background on the
 returns to schooling. 
Journal: Applied Economics 
Pages: 963-972 
Issue: 8 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600111 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600111 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:963-972




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Greenidge 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Greenidge 
Author-Name: Carlos Holder 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Holder 
Author-Name: Alvon Moore 
Author-X-Name-First: Alvon 
Author-X-Name-Last: Moore 
Title: Current account deficit sustainability: the case of Barbados 
Abstract:
  This article investigates the sustainability of the current account
 deficit in Barbados over the period 1960 to 2006. Various unit root and
 cointegration techniques are employed to determine whether the country is
 satisfying its Intertemporal Budget Constraint (IBC). The cointegration
 regressions suggest that the current account of Barbados is sustainable
 and that deviations from long-run equilibrium between real exports and
 imports are corrected in the short-run with imports making the adjustment. 
Journal: Applied Economics 
Pages: 973-984 
Issue: 8 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600095 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600095 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:973-984




Template-Type: ReDIF-Article 1.0
Author-Name: W. Robert Reed 
Author-X-Name-First: W. Robert 
Author-X-Name-Last: Reed 
Author-Name: Haichun Ye 
Author-X-Name-First: Haichun 
Author-X-Name-Last: Ye 
Title: Which panel data estimator should I use? 
Abstract:
  This study employs Monte Carlo experiments to evaluate the performances
 of a number of common panel data estimators when serial correlation and
 cross-sectional dependence are both present. It focuses on fixed effects
 models with less than 100 cross-sectional units and between 10 and 25 time
 periods (such as are commonly employed in empirical growth studies).
 Estimator performance is compared on two dimensions: (i) root mean square
 error and (ii) accuracy of estimated confidence intervals. An innovation
 of our study is that our simulated panel data sets are designed to look
 like 'real-world' panel data. We find large differences in the
 performances of the respective estimators. Further, estimators that
 perform well on efficiency grounds may perform poorly when estimating
 confidence intervals and vice versa. Our experimental results form the
 basis for a set of estimator recommendations. These are applied to 'out of
 sample' simulated panel data sets and found to perform well. 
Journal: Applied Economics 
Pages: 985-1000 
Issue: 8 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600087 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600087 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:985-1000




Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Jones 
Author-X-Name-First: Melanie 
Author-X-Name-Last: Jones 
Title: Disability, employment and earnings: an examination of heterogeneity 
Abstract:
  This article uses information from an ad hoc module on disability in the
 2002 UK Labour Force Survey to identify the heterogeneity that exists
 within the disabled group and examine its impact on labour market
 outcomes. After controlling for a range of personal characteristics, the
 type, severity, duration and cause of the disability are found to be
 important determinants of employment, but there is less evidence to
 support the influence of within group heterogeneity on earnings. 
Journal: Applied Economics 
Pages: 1001-1017 
Issue: 8 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600053 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600053 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:1001-1017




Template-Type: ReDIF-Article 1.0
Author-Name: Par Sjolander 
Author-X-Name-First: Par 
Author-X-Name-Last: Sjolander 
Title: A stationary unbiased finite sample ARCH-LM test procedure 
Abstract:
  Engle's (1982) Autoregressive Conditional Heteroscedasticity-Lagrange
 Multiplier (ARCH-LM) test is the undisputed standard test to detect ARCH.
 In this article, Monte Carlo (MC) simulations are used to demonstrate that
 the test's statistical size is biased in finite samples. Two complementing
 remedies to the related problems are proposed. One simple solution is to
 simulate new unbiased critical values for the ARCH-LM test. A second
 solution is based on the observation that for econometrics practitioners,
 detection of ARCH is generally followed by remedial modelling of this
 time-varying heteroscedasticity by the most general and robust model in
 the ARCH family; the Generalized ARCH (GARCH(1,1)) model. If the GARCH
 model's stationarity constraints are violated, as in fact is very often
 the case, obviously, we can conclude that ARCH-LM's detection of
 conditional heteroscedasticity has no or limited practical value.
 Therefore, formulated as a function of whether the GARCH model's
 stationarity constraints are satisfied or not, an unbiased and more
 relevant two-stage ARCH-LM test is specified. If the primary objectives of
 the study are to detect and remedy the problems of conditional
 heteroscedasticity, or to interpret GARCH parameters, the use of this
 article's new two-stage procedure, 2-Stage Unbiased ARCH-LM (2S-UARCH-LM),
 is strongly recommended. 
Journal: Applied Economics 
Pages: 1019-1033 
Issue: 8 
Volume: 43 
Year: 2010 
X-DOI: 10.1080/00036840802600046 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600046 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2010:i:8:p:1019-1033




Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Bask 
Author-X-Name-First: Mikael 
Author-X-Name-Last: Bask 
Author-Name: Jens Lundgren 
Author-X-Name-First: Jens 
Author-X-Name-Last: Lundgren 
Author-Name: Niklas Rudholm 
Author-X-Name-First: Niklas 
Author-X-Name-Last: Rudholm 
Title: Market power in the expanding Nordic power market 
Abstract:
  We examine if the Nordic power market, Nord Pool, has been competitive or
 if electricity suppliers have had market power. Specifically, since the
 evolution from national markets to a multi-national and largely
 deregulated power market has taken place stepwise, we also examine how the
 degree of market power has evolved during this integration process. The
 Bresnahan-Lau method together with weekly data during 1996-2004 are used
 in the analysis, which shows that electricity suppliers have had small,
 but statistically significant, market power, but that the market power has
 been reduced as the Nord Pool area has expanded. 
Journal: Applied Economics 
Pages: 1035-1043 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600269 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600269 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1035-1043




Template-Type: ReDIF-Article 1.0
Author-Name: Monica Escaleras 
Author-X-Name-First: Monica 
Author-X-Name-Last: Escaleras 
Author-Name: Charles Register 
Author-X-Name-First: Charles 
Author-X-Name-Last: Register 
Title: Ethnic tensions and social infrastructure 
Abstract:
  Ethnic tensions may restrict economic growth through a number of
 infrastructure channels. We extend this literature by (1) using a broad
 measure of ethnic tensions, (2) considering a variety of measures of
 social infrastructure for a panel of 87 countries across 16 years and (3)
 explicitly addressing the endogeneity of ethnic tensions. We find ethnic
 tensions significantly retard the formation of social infrastructure and,
 by extension, impose an unnecessary cap on growth and development. As
 such, governments would well-serve the interests of their populaces by
 enacting policies, conducting politics and carrying out their daily
 functions in ways that serve to dampen ethnic tensions, rather than the
 reverse, which too often seems the case. 
Journal: Applied Economics 
Pages: 1045-1057 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600152 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600152 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1045-1057




Template-Type: ReDIF-Article 1.0
Author-Name: David Vera 
Author-X-Name-First: David 
Author-X-Name-Last: Vera 
Title: How robust is the Fed reaction function to changes in the output-gap specification? 
Abstract:
  Using alternative measures of the output gap, we estimate a
 forward-looking monetary policy reaction function, similar to those
 estimated by Clarida et al. (1998, 2000), for Greenspan's period as a
 chairman of the Board of Governors of the US Federal Reserve System. We
 are able to show that the reaction function that considers an output gap
 based on the industrial production index instead of the unemployment rate
 better captures the behaviour of the Federal Reserve during Greenspan's
 period. 
Journal: Applied Economics 
Pages: 1059-1065 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600236 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600236 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1059-1065




Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Musshoff 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Musshoff 
Author-Name: Martin Odening 
Author-X-Name-First: Martin 
Author-X-Name-Last: Odening 
Author-Name: Wei Xu 
Author-X-Name-First: Wei 
Author-X-Name-Last: Xu 
Title: Management of climate risks in agriculture-will weather derivatives permeate? 
Abstract:
  It is a matter of common knowledge that weather represents the major
 source of uncertainty in crop production. It is to be expected that
 weather fluctuations will increase in the future due to climate change.
 Traditionally, farmers tried to protect themselves against weather-related
 yield variations by buying insurances. More recently, there has been a
 discussion regarding the use of weather derivatives to safeguard against
 volumetric risks. Although weather derivatives display advantages over
 traditional insurances, there is only a relatively small market for these
 products in agriculture. This is partly attributed to the fact that it is
 unclear whether and to what extent weather derivatives are a useful
 instrument of risk management in agriculture. This study applies real
 yield and weather data from Northeast Germany in order to quantify the
 risk-reducing effect that can be achieved in wheat production by using
 precipitation options. To do so stochastic simulation is used. The hedging
 effectiveness is controlled by the contract design (index, strike level,
 tick size). However, the local basis risk and the geographical basis risk
 remain with the farmer. We separate both causes of basis risk and reveal
 the extent of each. This enables conclusions regarding the design of
 weather derivatives; thus the question dealt with here is relevant both
 for farmers and for potential sellers of weather derivatives. 
Journal: Applied Economics 
Pages: 1067-1077 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600210 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600210 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1067-1077




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Crespo Cuaresma 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Crespo Cuaresma 
Author-Name: Gerhard Reitschuler 
Author-X-Name-First: Gerhard 
Author-X-Name-Last: Reitschuler 
Author-Name: Maria Antoinette Silgoner 
Author-X-Name-First: Maria Antoinette 
Author-X-Name-Last: Silgoner 
Title: On the effectiveness and limits of fiscal stabilizers 
Abstract:
  The smoothing impact of fiscal stabilizers (proxied by government
 expenditures) on business cycle volatility is studied for a panel of
 European Union (EU) countries in the period 1970-1999. Special emphasis is
 put on the investigation of possible nonlinearities in the relationship
 between Gross Domestic Product (GDP) growth volatility and fiscal
 stabilizers. The results show that the business cycle volatility smoothing
 effect of fiscal stabilizers may revert at high levels. The results hold
 when using government revenues as a proxy for fiscal stabilizers. 
Journal: Applied Economics 
Pages: 1079-1086 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600251 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600251 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1079-1086




Template-Type: ReDIF-Article 1.0
Author-Name: Roberta Colavecchio 
Author-X-Name-First: Roberta 
Author-X-Name-Last: Colavecchio 
Author-Name: Declan Curran 
Author-X-Name-First: Declan 
Author-X-Name-Last: Curran 
Author-Name: Michael Funke 
Author-X-Name-First: Michael 
Author-X-Name-Last: Funke 
Title: Drifting together or falling apart? The empirics of regional economic growth in post-unification Germany 
Abstract:
  The objective of this article is to address the question of convergence
 across German districts in the first decade after German unification by
 drawing out and emphasizing some stylized facts of regional per capita
 income dynamics. We achieve this by employing nonparametric techniques
 which focus on the evolution of the entire cross-sectional income
 distribution. In particular, we follow a distributional approach to
 convergence based on kernel density estimation and implement a number of
 tests to establish the statistical significance of our findings. This
 article finds that the relative income distribution appears to be
 stratifying into a trimodal/bimodal distribution. 
Journal: Applied Economics 
Pages: 1087-1098 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600178 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600178 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1087-1098




Template-Type: ReDIF-Article 1.0
Author-Name: Wook Sohn 
Author-X-Name-First: Wook 
Author-X-Name-Last: Sohn 
Author-Name: Hyosoon Choi 
Author-X-Name-First: Hyosoon 
Author-X-Name-Last: Choi 
Title: Banks' lending decisions after loan acquisitions: do banks favour pre-existing relationships? 
Abstract:
  This article examines the lending decisions of Korean banks after they
 acquire loan portfolios from failed banks. We find that a firm's
 pre-existing relationships positively affect the continuation of those
 relationships, and that pre-existing relationships negatively impact
 increases in loan size, once those relationships are maintained. These
 results suggest that banks have a conflict of interest that comes with
 pre-existing lending relationships, and that bank quality does not
 necessarily convey the risk classes of its client firms. 
Journal: Applied Economics 
Pages: 1099-1112 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600202 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600202 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1099-1112




Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Yi Chen 
Author-X-Name-First: Wen-Yi 
Author-X-Name-Last: Chen 
Author-Name: Chunhuei Chi 
Author-X-Name-First: Chunhuei 
Author-X-Name-Last: Chi 
Author-Name: Yu-Hui Lin 
Author-X-Name-First: Yu-Hui 
Author-X-Name-Last: Lin 
Title: The willingness to pay for the health care under Taiwan's national health insurance system 
Abstract:
  In this study, we utilized the nested multinomial logit model to estimate
 the Willingness To Pay (WTP) values for different National Health
 Insurance (NHI) coverage plans in Taiwan. The WTP value for having care
 from clinics in a Hospital Care Only (HCO) plan is NT$178 (US$6) per
 person/month. The WTP value for having care from hospitals in a Clinic
 Care Only (CCO) plan is NT$1342 (US$43) per person/month. The WTP value
 for the NHI with a Universal Coverage (UC) is NT$1540 (US$49) per
 person/month. The figure NT$1540 (US$49) is equivalent to 8.77% of monthly
 household income, much higher than the new premium rate of the new NHI tax
 (2.5-4% of monthly household income) proposed by the Taiwan's government.
 Our result suggests that Taiwan's government may increase the new premium
 rate further in order to make Taiwan's NHI financially more sustainable. 
Journal: Applied Economics 
Pages: 1113-1123 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600228 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600228 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1113-1123




Template-Type: ReDIF-Article 1.0
Author-Name: Jani Beko 
Author-X-Name-First: Jani 
Author-X-Name-Last: Beko 
Author-Name: Timotej Jagric 
Author-X-Name-First: Timotej 
Author-X-Name-Last: Jagric 
Title: Demand models for direct mail and periodicals delivery services: results for a transition economy 
Abstract:
  This article examines the demand for services of the Slovenian national
 postal operator for the direct mail and periodicals market and separately
 for the direct mail market. The main factors of the demand are found to be
 various price indicators with respect to individual market, two income
 series and the variable of economic environment. The results of our
 empirical analysis suggest that the price elasticity of demand on both
 markets is below zero. The autonomy in price increases is limited due to
 positive cross-price elasticity of demand for direct mail with regard to
 price fluctuations for TV commercials. Substitution effects on the direct
 mail market are even more evident with regard to price fluctuations for
 advertisements in magazines and daily papers. An additional finding is
 that the demand on both markets varies seasonally in all models estimated
 by us. Finally, coefficients of income elasticity of demand for direct
 mail services show that the total number of mail deliveries on the direct
 mail market increases faster than the retail revenue in real terms. 
Journal: Applied Economics 
Pages: 1125-1138 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600244 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600244 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1125-1138




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Eisenhauer 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Eisenhauer 
Author-Name: Luigi Ventura 
Author-X-Name-First: Luigi 
Author-X-Name-Last: Ventura 
Title: Interval risk aversion 
Abstract:
  The conventional measures of absolute and relative risk aversion are
 appropriate for measuring preferences locally, but because they rely on
 differential calculus, they cannot accurately capture attitudes towards
 high-stakes risks involving potentially large changes in wealth.
 Eisenhauer (2006) has recently proposed an alternative approach which
 avoids the use of calculus. The present article extends that work in two
 ways. First, the Pratt-Arrow coefficient of absolute risk aversion is
 generalized into a measure of interval risk aversion, suitable for
 analysing preferences over risks of any magnitude, and a corresponding
 interval measure of relative risk aversion is constructed from preference
 and risk parameters, without explicit reference to initial wealth or
 income. Second, the new measures are applied to survey data from the Bank
 of Italy, to illustrate their empirical applicability to large-scale risk. 
Journal: Applied Economics 
Pages: 1139-1150 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600285 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600285 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1139-1150




Template-Type: ReDIF-Article 1.0
Author-Name: B. Mak Arvin 
Author-X-Name-First: B. 
Author-X-Name-Last: Mak Arvin 
Author-Name: Byron Lew 
Author-X-Name-First: Byron 
Author-X-Name-Last: Lew 
Title: Does democracy affect environmental quality in developing countries? 
Abstract:
  This article examines the impact of democracy on environmental conditions
 in a large sample of developing countries for the period 1976-2003. This
 relationship is explored empirically using three indicators of
 environmental quality: carbon dioxide emissions, water pollution and
 deforestation damage. We find evidence that democracy is conducive to
 environmental improvement but that this result depends on the measure of
 the environmental quality that is used. We also find remarkable
 differences in results across our different sub-samples. The conclusion
 therefore is that there is no uniform relationship between democracy and
 the state of the environment. 
Journal: Applied Economics 
Pages: 1151-1160 
Issue: 9 
Volume: 43 
Year: 2009 
X-DOI: 10.1080/00036840802600277 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600277 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1151-1160




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Boileau 
Author-X-Name-First: Martin 
Author-X-Name-Last: Boileau 
Author-Name: Marc-Andre Letendre 
Author-X-Name-First: Marc-Andre 
Author-X-Name-Last: Letendre 
Title: Inventories, sticky prices, and the persistence of output and inflation 
Abstract:
  Post-war business cycle fluctuations of output and inflation are
 remarkably persistent. Many recent sticky-price models, however, grossly
 underpredict this persistence. We assess whether adding inventories to a
 standard sticky-price model raises the persistence of output and
 inflation. For this addition, we consider a shopping-cost model. In the
 model, consumers find shopping activities costly, and the cost of shopping
 depends on the stock of goods available. In this context, producers manage
 inventories to smooth production and to affect the cost of shopping. We
 find that the shopping-cost model generates a persistence for output and
 inflation that matches the persistence observed in the post-1985 US data. 
Journal: Applied Economics 
Pages: 1161-1174 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600343 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600343 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1161-1174




Template-Type: ReDIF-Article 1.0
Author-Name: Hilary Ingham 
Author-X-Name-First: Hilary 
Author-X-Name-Last: Ingham 
Author-Name: Mike Ingham 
Author-X-Name-First: Mike 
Author-X-Name-Last: Ingham 
Author-Name: Jan Herbst 
Author-X-Name-First: Jan 
Author-X-Name-Last: Herbst 
Title: Local unemployment in Poland: rural-urban contrasts 
Abstract:
  Unemployment continues to bedevil Poland, albeit with striking
 sub-national differences, which this article seeks to explain using random
 effects error component two-stage estimation for the country's NUTS 4
 (nomenclature des unites territoriales statistiques) level powiats. Given
 the economy's peculiar configuration under communism, with its large
 private agricultural sector, emphasis is placed on rural-urban
 differences. While less densely populated areas do suffer higher
 unemployment rates, the effect is moderated by hidden unemployment in
 farming. On the other hand, powiats that housed the ex-state farms suffer
 a negative long-term legacy. Other notable results include an evident
 positive impact of foreign capital on local labour market fortunes. 
Journal: Applied Economics 
Pages: 1175-1186 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600293 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600293 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1175-1186




Template-Type: ReDIF-Article 1.0
Author-Name: Shigeyuki Hamori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Hamori 
Author-Name: Naoko Hamori 
Author-X-Name-First: Naoko 
Author-X-Name-Last: Hamori 
Title: An empirical analysis of real exchange rate movements in the euro 
Abstract:
  This study uses a long-run Structural Vector Autoregressive (SVAR)
 approach to identify the sources of real exchange rate fluctuations in the
 euro. The empirical results indicate that real shocks play a dominant role
 in explaining the real exchange rate fluctuations in the euro. This
 implies that the best approach for policymakers toward improving the
 competitiveness of the EU is to focus on improvements in the real economy,
 such as improvements in efficiency, technologies and productivity. 
Journal: Applied Economics 
Pages: 1187-1191 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600319 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600319 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1187-1191




Template-Type: ReDIF-Article 1.0
Author-Name: Hajime Katayama 
Author-X-Name-First: Hajime 
Author-X-Name-Last: Katayama 
Author-Name: Hudan Nuch 
Author-X-Name-First: Hudan 
Author-X-Name-Last: Nuch 
Title: A game-level analysis of salary dispersion and team performance in the national basketball association 
Abstract:
  Using game-level panel data on the National Basketball Association (NBA),
 we examine the causal effect of within-team salary dispersion on team
 performance. We exploit three measures of salary dispersion and examine
 the effect at three levels: whether the outcome of the game is influenced
 by salary dispersion among (1) players participating in the current game
 (active players), (2) players who played more than half of their team's
 games in a season (regular and occasional players) and (3) the entire
 player population. Regardless of the measures used, we find that salary
 dispersion does not influence team performance. 
Journal: Applied Economics 
Pages: 1193-1207 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600335 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600335 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1193-1207




Template-Type: ReDIF-Article 1.0
Author-Name: Ursula Jaenichen 
Author-X-Name-First: Ursula 
Author-X-Name-Last: Jaenichen 
Author-Name: Gesine Stephan 
Author-X-Name-First: Gesine 
Author-X-Name-Last: Stephan 
Title: The effectiveness of targeted wage subsidies for hard-to-place workers 
Abstract:
  Targeted wage subsidies paid to employers are an important element of
 active labour market policies in Germany. This article uses propensity
 score matching to investigate their effect on the employment and
 unemployment rates of subsidized hard-to-place workers. In a first
 scenario, we estimate the average treatment effect of a subsidy on
 previously unemployed individuals. A second scenario analyses the effects
 of a subsidy on employment probabilities conditional on taking-up
 employment. The third scenario investigates the additional effect of a
 subsidy on individuals, who have participated in a short-term training
 measure beforehand. Summing up and in line with the literature, the
 results show that subsidies have a favourable effect on the employment
 prospects of participants. 
Journal: Applied Economics 
Pages: 1209-1225 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600426 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600426 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1209-1225




Template-Type: ReDIF-Article 1.0
Author-Name: Christine Jiang 
Author-X-Name-First: Christine 
Author-X-Name-Last: Jiang 
Author-Name: Jang-Chul Kim 
Author-X-Name-First: Jang-Chul 
Author-X-Name-Last: Kim 
Author-Name: Robert Wood 
Author-X-Name-First: Robert 
Author-X-Name-Last: Wood 
Title: A comparison of volatility and bid-ask spread for NASDAQ and NYSE after decimalization 
Abstract:
  We compare volatility and transaction costs for National Association of
 Securities Dealers Automated Quotations (NASDAQ) and New York Stock
 Exchange (NYSE) firms after decimalization. Using the data of May 2001,
 our study includes several large samples are matched based on key
 determinants of volatility and transaction costs. Our findings suggest
 that volatility on NASDAQ is much higher than on NYSE even after the
 recent market reforms and decimalization. Transaction costs measured by
 quoted and effective spreads remain significantly higher on NASDAQ than on
 NYSE, and these differences cannot be attributed to the differences in the
 characteristics of the stocks traded in the two markets. In addition, the
 frequency of small (large) trades inside the quotes is significantly
 greater (lower) on NYSE than on NASDAQ. 
Journal: Applied Economics 
Pages: 1227-1239 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600376 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600376 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1227-1239




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Ledesma-Rodriguez 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Ledesma-Rodriguez 
Author-Name: Manuel Navarro-Ibanez 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Navarro-Ibanez 
Author-Name: Jorge Perez-Rodriguez 
Author-X-Name-First: Jorge 
Author-X-Name-Last: Perez-Rodriguez 
Author-Name: Simon Sosvilla-Rivero 
Author-X-Name-First: Simon 
Author-X-Name-Last: Sosvilla-Rivero 
Title: Implicit bands in the yen/dollar exchange rate 
Abstract:
  This article attempts to identify implicit exchange rate regimes for the
 yen/dollar exchange rate. To that end, we apply a sequential procedure
 that considers both the dynamics of exchange rates and central bank
 interventions to data covering the period from 1971 to 2003. Our results
 suggest that implicit bands existed in two subperiods: April-December 1980
 and March-October 1987, the latter coinciding with the Louvre Accord.
 Furthermore, the study of the credibility of such implicit bands indicates
 the high degree of confidence attributed by economic agents to the
 evolution of the yen/dollar exchange rate within the detected implicit
 band rate, thus lending further support to the relevance of such implicit
 bands. 
Journal: Applied Economics 
Pages: 1241-1255 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600384 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600384 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1241-1255




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Henrickson 
Author-X-Name-First: Kevin 
Author-X-Name-Last: Henrickson 
Title: Spatial competition and geographic grain transportation demand on the Mississippi and Illinois rivers 
Abstract:
  Using a model of spatial competition between grain elevators, I estimate
 a model of transportation demand for grain elevators located along the
 Mississippi and Illinois rivers. This analysis uses a unique set of
 interview data collected by the Tennessee Valley Authority (TVA). Both the
 theory and the data suggest that there are geographic patterns in barge
 demand elasticity-patterns which are empirically uncovered using an
 endogenous switch point model. These results are of central importance to
 policy-makers as they call into question assumptions made by the models
 currently used for measuring the benefits of inland waterway improvements. 
Journal: Applied Economics 
Pages: 1257-1269 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600392 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600392 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1257-1269




Template-Type: ReDIF-Article 1.0
Author-Name: Shishir Saxena 
Author-X-Name-First: Shishir 
Author-X-Name-Last: Saxena 
Title: Technology and spillovers: evidence from Indian manufacturing microdata 
Abstract:
  This article finds that technology stocks and spillovers have
 significantly affected the output of Indian manufacturing firms over the
 period 1994 to 2006. The technology of a firm is measured, as embodied in
 its recent stock of plant and machinery, as well as generated through its
 own R&D. Moreover, investments in both these types of capital by a firm,
 also generate significant knowledge spillovers, for all other firms in
 that industry. 
Journal: Applied Economics 
Pages: 1271-1287 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600301 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600301 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1271-1287




Template-Type: ReDIF-Article 1.0
Author-Name: Sunday Iyare 
Author-X-Name-First: Sunday 
Author-X-Name-Last: Iyare 
Author-Name: Winston Moore 
Author-X-Name-First: Winston 
Author-X-Name-Last: Moore 
Title: Financial sector development and growth in small open economies 
Abstract:
  This article investigates the Granger causal relationship between
 financial development and economic growth for four small open economies
 over the period 1960 to 2003. Both long- and short-run Granger causality
 tests are used to assess the finance-growth nexus. The results suggest
 that there is a positive association between financial development and
 growth in all countries. However, the long-run causality tests show that
 growth tends to lead financial development in Singapore and Jamaica,
 financial development leads growth in Trinidad and Tobago and there is a
 bidirectional link in Barbados. These results therefore suggest that
 cross-country studies could overstate the impact of financial development
 on growth, since they ignore differences - even in relatively homogenous
 groups. 
Journal: Applied Economics 
Pages: 1289-1297 
Issue: 10 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600350 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600350 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1289-1297




Template-Type: ReDIF-Article 1.0
Author-Name: Veronique Genre 
Author-X-Name-First: Veronique 
Author-X-Name-Last: Genre 
Author-Name: Karsten Kohn 
Author-X-Name-First: Karsten 
Author-X-Name-Last: Kohn 
Author-Name: Daphne Momferatou 
Author-X-Name-First: Daphne 
Author-X-Name-Last: Momferatou 
Title: Understanding inter-industry wage structures in the euro area 
Abstract:
  This article focuses on the euro area wage structure and its potential
 determinants from a sectoral viewpoint. Merging information from the
 Organization for Economic Co-operation and Development (OECD) Structural
 Analysis database with data from the EU Labour Force Survey, we construct
 a cross-country panel of 22 industries in eight euro area countries for
 1991-2002. Data inspection confirms the existence of a fairly stable
 inter-industry wage structure that is similar across countries. We then
 apply panel data techniques to identify factors explaining inter-industry
 wage differentials in the euro area. Both workforce characteristics (e.g.
 human capital variables) and firm-related characteristics (e.g. capital
 intensity, productivity) contribute significantly. However, considerable
 wage heterogeneity across sectors remains. Idiosyncratic sector and
 country specifics, reflecting different socio-cultural and institutional
 backgrounds, appear to bear a major role. While our empirical analysis
 only uses direct evidence from workforce and firm-related characteristics,
 we also relate the remaining heterogeneity to institutional
 characteristics, based on related literature. 
Journal: Applied Economics 
Pages: 1299-1313 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.537637 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.537637 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1299-1313




Template-Type: ReDIF-Article 1.0
Author-Name: Evangelos Falaris 
Author-X-Name-First: Evangelos 
Author-X-Name-Last: Falaris 
Title: Misclassification of the dependent variable in binary choice models: evidence from five Latin American countries 
Abstract:
  Misclassification of the dependent variable in binary choice models can
 result in inconsistency of the parameter estimates. I estimate probit
 models that treat misclassification probabilities as estimable parameters
 for three labour market outcomes: formal sector employment, pension
 contribution and job change. I use Living Standards Measurement Study
 (LSMS) data from Nicaragua, Peru, Brazil, Guatemala and Panama. I find
 that there is a significant misclassification in 11 of the 16 cases that I
 investigate. If misclassification is present but is ignored, estimates of
 the probit parameters and their SEs are biased toward zero. In most cases,
 predicted probabilities of the outcomes are significantly affected by
 misclassification of the dependent variable. Even a moderate degree of
 misclassification can have substantial effects on the estimated parameters
 and on many of the predictions. 
Journal: Applied Economics 
Pages: 1315-1327 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600483 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600483 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1315-1327




Template-Type: ReDIF-Article 1.0
Author-Name: Glynn Tonsor 
Author-X-Name-First: Glynn 
Author-X-Name-Last: Tonsor 
Author-Name: Ted Schroeder 
Author-X-Name-First: Ted 
Author-X-Name-Last: Schroeder 
Title: Multivariate forecasting of a commodity portfolio: application to cattle feeding margins and risk 
Abstract:
  Traditionally, economists have utilized univariate approaches to forecast
 prices, even for firms operating in multicommodity environments. This
 research improves the way in which managerial decision making is analysed
 by developing a model better representing the price risks and
 opportunities faced by firms that produce using a portfolio of
 commodities. Using the situation of cattle feedlot investors and managers
 as an example, this is accomplished by recognizing the multivariate (live
 cattle, feeder cattle and corn prices) situation that feedlots operate in
 and employing corresponding multivariate simulation techniques. Evaluation
 suggests that properly modelling the cattle feeding margin as a
 multivariate set of prices significantly improves the accuracy of
 forecasting future feeding margin values realized in the cash market. The
 model also suggests incorporating both implied and historical time-varying
 volatility information when forecasting margin variability. Implications
 for other multicommodity situations and future research are also provided. 
Journal: Applied Economics 
Pages: 1329-1339 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600517 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600517 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1329-1339




Template-Type: ReDIF-Article 1.0
Author-Name: Randall Kesselring 
Author-X-Name-First: Randall 
Author-X-Name-Last: Kesselring 
Author-Name: Dale Bremmer 
Author-X-Name-First: Dale 
Author-X-Name-Last: Bremmer 
Title: Setting the target for the federal funds rate: the determinants of Fed behaviour 
Abstract:
  This article analyses the factors the Federal Open Market Committee
 (FOMC) considers in setting the target for the federal funds rate. The
 sample consists of 262 FOMC meetings between 1983 and 2005. Statistical
 results indicate that the Fed's target is inversely related to the
 unemployment rate and directly related to several measures of expected
 inflation. Technical factors such as the number of days since the last
 target change, the size and direction of the previous target change and
 the gap between the actual federal funds rate and its targeted value were
 also statistically significant explanatory variables. Estimations were
 performed using Ordinary Least Squares (OLS), censored regression and two
 types of ordered probit; but the results proved to be robust regardless of
 the statistical technique used. 
Journal: Applied Economics 
Pages: 1341-1349 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600459 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600459 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1341-1349




Template-Type: ReDIF-Article 1.0
Author-Name: L. Bettendorf 
Author-X-Name-First: L. 
Author-X-Name-Last: Bettendorf 
Author-Name: E. Dijkgraaf 
Author-X-Name-First: E. 
Author-X-Name-Last: Dijkgraaf 
Title: The bicausal relation between religion and income 
Abstract:
  In this article the relation between religion and income is investigated
 using a micro-dataset for the Netherlands. Religion is measured by
 religious membership and by participation. Instead of estimating a
 religion equation and an income equation separately, joint regression is
 preferred since this generally yields more efficient estimates. Following
 the single-equation approach, both religious measures are found to
 decrease income significantly and income is found to affect religion
 negatively. However, these cross-effects become insignificant once the
 equations are estimated simultaneously. In contrast, the effects of
 socio-economic characteristics on religion and income hardly differ
 between the approaches. 
Journal: Applied Economics 
Pages: 1351-1363 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600442 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600442 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1351-1363




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Pierdzioch 
Author-X-Name-First: Christian 
Author-X-Name-Last: Pierdzioch 
Author-Name: Jan-Christoph Rulke 
Author-X-Name-First: Jan-Christoph 
Author-X-Name-Last: Rulke 
Author-Name: Georg Stadtmann 
Author-X-Name-First: Georg 
Author-X-Name-Last: Stadtmann 
Title: Do professional economists' forecasts reflect Okun's law? Some evidence for the G7 countries 
Abstract:
  Using survey data for the G7 countries, we report that professional
 economists' forecasts of changes in the unemployment rate and the growth
 rate of real output are consistent with Okun's law. Professional
 economists do not believe in potential asymmetries in Okun's law over the
 business cycle. They believe in the classic linear version of Okun's law. 
Journal: Applied Economics 
Pages: 1365-1373 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600400 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600400 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1365-1373




Template-Type: ReDIF-Article 1.0
Author-Name: Ying Xie 
Author-X-Name-First: Ying 
Author-X-Name-Last: Xie 
Author-Name: David Giles 
Author-X-Name-First: David 
Author-X-Name-Last: Giles 
Title: A survival analysis of the approval of US patent applications 
Abstract:
  We model the length of time that it takes for a patent application to be
 granted by the US Patent and Trademark Office (USPTO), conditional on the
 patent actually being awarded eventually. Survival analysis is applied and
 both the nonparametric Kaplan-Meier and parametric accelerated failure
 time models are used to analyse the data. We find that the number of
 claims a patent makes, the number of citations a patent makes, the
 patent's technological category, and the type of applicant all have
 significant effects on the duration that a patent is under consideration.
 A log-normal survival model is the preferred parametric specification, and
 the results suggest that the hazard function is nonmonotonic over time. 
Journal: Applied Economics 
Pages: 1375-1384 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600418 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600418 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1375-1384




Template-Type: ReDIF-Article 1.0
Author-Name: Eiji Yamamura 
Author-X-Name-First: Eiji 
Author-X-Name-Last: Yamamura 
Title: Effects of social norms and fractionalization on voting behaviour in Japan 
Abstract:
  This article uses prefecture-level panel data from Japan, spanning the
 period 1989-2003, to examine the influence of social norms and
 fractionalization on voting behaviour. The key findings obtained from
 analysis via the fixed effects estimation, which controls for unobserved
 prefecture-specific fixed effects, are as follows: (1) the voter turnout
 is higher in close-knit communities, indicating that social norms enhance
 voting; (2) fractionalization, from both economic and generational
 standpoints, lowers the voter turnout and (3) a lack of social capital can
 lead to the distribution of votes being spread thinly among the competing
 parties. 
Journal: Applied Economics 
Pages: 1385-1398 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600434 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600434 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1385-1398




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Hsuan Chen 
Author-X-Name-First: Yi-Hsuan 
Author-X-Name-Last: Chen 
Author-Name: Kehluh Wang 
Author-X-Name-First: Kehluh 
Author-X-Name-Last: Wang 
Author-Name: Anthony Tu 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Tu 
Title: Default correlation at the sovereign level: evidence from some Latin American markets 
Abstract:
  Using the eruption of Argentina debt crisis in 2001 as a natural
 experiment, we investigated the correlated default at the sovereign level
 for some Latin American countries. Daily closing market quotes for
 sovereign Credit Default Swaps (CDS) of Argentina, Brazil, Mexico and
 Venezuela were obtained from CreditTrade database. Using copula approach,
 we observed increased dependences among sovereign CDS markets during the
 crisis period. Their dependence structures were found to be asymmetric.
 Moreover, the degree of credit contagion was related to the
 creditworthiness of the country. This study also discussed the
 implications of these findings for policymakers. 
Journal: Applied Economics 
Pages: 1399-1411 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600467 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600467 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1399-1411




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brent 
Title: An implicit price of a DALY for use in a cost-benefit analysis of ARVs 
Abstract:
  This article uses the revealed preference approach to estimate the price
 for a Disability Adjusted Life Year (DALY) implied by grant decisions by
 the Global Fund for AIDS, tuberculosis (TB) and malaria (GFATM). A
 cost-benefit criterion is used that requires the DALY price exceed the
 cost-effectiveness ratio. The estimated price was $6300 for a DALY saved
 from any disease, but it was $11 900 from a DALY saved specifically from
 HIV/AIDS. Estimates of the cost-effectiveness ratios of Antiretroviral
 Drug Therapies (ARVs) in the literature were examined. At the DALY prices
 implicit by GFATM decisions, ARVs would be socially worthwhile. 
Journal: Applied Economics 
Pages: 1413-1421 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600475 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600475 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1413-1421




Template-Type: ReDIF-Article 1.0
Author-Name: Yoonkyung Yuh 
Author-X-Name-First: Yoonkyung 
Author-X-Name-Last: Yuh 
Author-Name: Jaehwan Yang 
Author-X-Name-First: Jaehwan 
Author-X-Name-Last: Yang 
Title: Optimal annuity planning and longevity risk: evidence from Korea 
Abstract:
  This study examines annuity planning using an optimization framework. An
 optimization problem is formulated with the objective of maximizing the
 lifetime utility of consumption and bequestable wealth, and benchmark
 cases for Korean households are applied. We extend the optimization model
 suggested in Gupta and Li (2007) by incorporating realistic constraints,
 such as installment premium contracts, deferred annuity payments and the
 possibility of borrowing. Further, we have considered a variety of
 longevity cases. The results confirmed that an annuity is an effective
 tool for managing longevity risk, and annuitization timing is crucial for
 the maximization of lifetime utility. 
Journal: Applied Economics 
Pages: 1423-1433 
Issue: 11 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670762 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1423-1433




Template-Type: ReDIF-Article 1.0
Author-Name: Pimbucha Rusmevichientong 
Author-X-Name-First: Pimbucha 
Author-X-Name-Last: Rusmevichientong 
Author-Name: Harry Kaiser 
Author-X-Name-First: Harry 
Author-X-Name-Last: Kaiser 
Title: Are there halo effects of US grain export promotion? 
Abstract:
  The objective of the research reported in this article is to examine both
 the own and cross effects of US export promotion for US and non-US grains.
 We focus on two previously neglected dimensions of the cross effects.
 First, we examine whether a halo effect (i.e. promotion for one US
 commodity positively effects demand for another US commodity) for US
 commodities exists. Second, we look at whether US grain export promotion
 has public goods characteristics, that is does US grain promotion have a
 halo effect on grain demand for other countries? We use a Linear
 Approximation of an Almost Ideal Demand System (LA/AIDS) model for US and
 non-US rice, wheat and sorghum that include US export promotion as one of
 the explanatory variables. Our goal is to provide further empirical
 evidence for the halo effect issue by using US grains as a case study
 since this sector has not been previously explored. In addition to
 estimating own and cross export promotion elasticities, the magnitude of
 cross effects on US market share for grain commodities are simulated for
 several policy scenarios involving alternative export promotion levels. 
Journal: Applied Economics 
Pages: 1435-1446 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600525 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1435-1446




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Agnolucci 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Agnolucci 
Author-Name: Andrew Venn 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Venn 
Title: Industrial energy intensities in the UK: is there a deterministic or stochastic difference among sectors? 
Abstract:
  Energy intensities of industrial subsectors differ widely due to
 differences in the final product and ultimately in the production process.
 The aim of this article is to assess whether these differences are
 stochastic or deterministic. The analysis is implemented for a number of
 British industrial subsectors over the 1970-2004 and 1978-2004 time
 periods. It turns out that the results of the tests are very influenced by
 whether one allows for the presence of structural breaks. Only when
 modelling structural breaks, one can conclude that the evidence in favour
 of the long-term differences being deterministic outbalances the evidence
 pointing to their nature being stochastic. This supports the adoption of
 policy instruments which are applied across productive sectors in a way
 which is not affected by the short-run evolution of the sectors. 
Journal: Applied Economics 
Pages: 1447-1462 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600541 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600541 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1447-1462




Template-Type: ReDIF-Article 1.0
Author-Name: David Hauner 
Author-X-Name-First: David 
Author-X-Name-Last: Hauner 
Author-Name: Manmohan Kumar 
Author-X-Name-First: Manmohan 
Author-X-Name-Last: Kumar 
Title: Interest rates and budget deficits revisited-evidence from the G7 countries 
Abstract:
  This article revisits whether budget deficits affect interest rates, and
 broadens the literature by examining whether financial globalization has
 changed this relationship. A structural model of interest determination is
 extended to account for the fact that official capital flows are
 determined differently than private flows and is estimated for a 1960-2005
 G7 panel. We find that deficits have a significant but small effect on
 long-term rates, but that this result depends on the fiscal concept used.
 Moreover, we find no evidence of structural change in interest rate
 determination in the recent decades, with the exception of an increased
 impact of insurance-related capital inflows in recent years. 
Journal: Applied Economics 
Pages: 1463-1475 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600574 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600574 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1463-1475




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyong Zheng 
Author-X-Name-First: Xiaoyong 
Author-X-Name-Last: Zheng 
Author-Name: David Zimmer 
Author-X-Name-First: David 
Author-X-Name-Last: Zimmer 
Title: Modelling bivariate count distributions with finite mixture models: application to health care demand of married couples 
Abstract:
  Count measures of health care utilization are often correlated with other
 measures of utilization. In addition, utilization measures display a high
 proportion of zero observations. This article attempts to accommodate both
 data features in one model, with an application to medical care usage of
 husbands and wives. A bivariate count representation is used to model
 dependence between husbands' and wives' utilizations, and a finite mixture
 specification accommodates the problem of excess zeros. Results show that
 married couples are characterized by two distinct subpopulations according
 to the intensity of utilization of the wife. 
Journal: Applied Economics 
Pages: 1477-1483 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600509 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600509 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1477-1483




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Jarrett 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Jarrett 
Author-Name: Zhenzhen Sun 
Author-X-Name-First: Zhenzhen 
Author-X-Name-Last: Sun 
Title: Evidence and explanations for the association among six Asian (Pacific-Basin) financial markets 
Abstract:
  We explore, explain and extend previous research on the relations between
 large and small stock returns in six Asian (Pacific-Basin) nations and the
 association among the same six Asian financial markets. Our purpose is to
 provide evidence of the cross-autocorrelation of stock returns in a more
 recent time period than analysed before by others. Evidence is brought to
 bear as to the theoretical explanations for stock market behaviour of
 Pacific-Basin nations including those with large financial markets, i.e.
 Japan and Hong Kong, and those with small financial markets, i.e. Thailand
 and Malaysia. No other study collects and analyses stock market behaviour
 in these nations for the recent time period. In addition, we study results
 from a sample of time periods and compare them. We indicate the validity
 of the conclusion made on studies of earlier time periods which conflict
 with various explanations of stock market behaviours. Relations between
 large and small size firms' stock returns as well as the influence of
 lagged returns provide the subject matter of this study. 
Journal: Applied Economics 
Pages: 1485-1496 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600533 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600533 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1485-1496




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Gervais 
Author-X-Name-First: Jean-Philippe 
Author-X-Name-Last: Gervais 
Title: Disentangling nonlinearities in the long- and short-run price relationships: an application to the US hog/pork supply chain 
Abstract:
  Increased concentration at the retail, food processing and farm input
 manufacturing levels has brought increased attention to patterns in
 retail-to-farm price spreads. Most studies documenting asymmetric price
 transmission focus on nonlinear error correction processes, as opposed to
 the current study which analyses potential nonlinearities in the long-run
 relationship between the farm and retail prices. The null hypothesis of
 nonlinearity in the long-run relationship between farm and retail prices
 in the US hog/pork supply chain is rejected in favour of a Smooth
 Transition Cointegration (STC) framework. The STC framework predicts
 downward price stickiness in retail prices. The predicted residuals of the
 nonlinear model are used to investigate whether it is possible to
 disentangle nonlinearity in the long-run price relationship from
 nonlinearity in the adjustment towards the long-run equilibrium. The
 results underline the importance of testing for linearity in the long-run
 price relationship before modelling nonlinearity in short-run dynamics. 
Journal: Applied Economics 
Pages: 1497-1510 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600558 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600558 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1497-1510




Template-Type: ReDIF-Article 1.0
Author-Name: Giorgia Giovannetti 
Author-X-Name-First: Giorgia 
Author-X-Name-Last: Giovannetti 
Author-Name: Giorgio Ricchiuti 
Author-X-Name-First: Giorgio 
Author-X-Name-Last: Ricchiuti 
Author-Name: Margherita Velucchi 
Author-X-Name-First: Margherita 
Author-X-Name-Last: Velucchi 
Title: Size, innovation and internationalization: a survival analysis of Italian firms 
Abstract:
  Firms' survival is often seen as crucial for economic growth and
 competitiveness. This article focuses on business demography of Italian
 firms, using an original database, obtained by matching and merging to
 gain the intersection of three firm level datasets. This database allows
 us to simultaneously consider the effect of size, technology, trade, FDIs
 and innovation on firms' survival probability. We show that size and
 technological level positively affect the likelihood of survival.
 Internationalized firms show higher failure risk: on average competition
 is stronger in international markets, forcing firms to be more efficient.
 However, large internationalized firms are more likely to 'survive'. An
 Italian internationalized firm to be successful and to survive, should be
 high-tech, large and innovative. 
Journal: Applied Economics 
Pages: 1511-1520 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600566 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600566 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1511-1520




Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Kumar Mishra 
Author-X-Name-First: Ashok Kumar 
Author-X-Name-Last: Mishra 
Author-Name: Krishna Paudel 
Author-X-Name-First: Krishna 
Author-X-Name-Last: Paudel 
Title: Estimating permanent income and wealth of the US farm households 
Abstract:
  Farm households are unique in the way they derive income when compared to
 nonfarm households. Farm operators and spouses have dual income sources,
 from farm and off-farm activities. Further, farm households on an average
 possess higher wealth than nonfarm households. This article estimates
 permanent income for the US farm households using data from a large
 national farm level survey. The estimated income is then used to identify
 the determinants of wealth accumulation by the US farm households. Results
 confirm that permanent income is closely related to age of the operator,
 education, occupation, farm size, location and number of earners in the
 household. Along with age, permanent income is a significant determinant
 of household wealth. It was also found that the wealth-income curve is
 nonlinear, upward sloping, and convex. Hausman's specification test
 indicates that variations in farm household wealth is better explained by
 estimated permanent income than observed total household income. Off-farm
 income cannot be treated as residual or transitory income. 
Journal: Applied Economics 
Pages: 1521-1533 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600582 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600582 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1521-1533




Template-Type: ReDIF-Article 1.0
Author-Name: Kent Messer 
Author-X-Name-First: Kent 
Author-X-Name-Last: Messer 
Author-Name: Harry Kaiser 
Author-X-Name-First: Harry 
Author-X-Name-Last: Kaiser 
Author-Name: Collin Payne 
Author-X-Name-First: Collin 
Author-X-Name-Last: Payne 
Author-Name: Brian Wansink 
Author-X-Name-First: Brian 
Author-X-Name-Last: Wansink 
Title: Can generic advertising alleviate consumer concerns over food scares? 
Abstract:
  Consumers consistently express concern about the risk of new variant
 Creutzfeldt-Jakob Disease (nvCJD) from eating beef. Given several US cows
 infected with Bovine Spongiform Encephalopathy (BSE) (mad cow disease) and
 recent findings that the path of transmission of nvCJD remains unknown,
 the potential for a devastating scare hangs over the beef industry. This
 experimental research evaluates the ability of industry advertising
 messages to offset the effects of media messages related to the lack of
 food safety. Using a nonstudent subject pool, this research finds that
 beef industry advertising significantly alleviates US consumer safety
 concerns. 
Journal: Applied Economics 
Pages: 1535-1549 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600616 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600616 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1535-1549




Template-Type: ReDIF-Article 1.0
Author-Name: Shuching Chou 
Author-X-Name-First: Shuching 
Author-X-Name-Last: Chou 
Author-Name: Fengyi Lin 
Author-X-Name-First: Fengyi 
Author-X-Name-Last: Lin 
Title: Bank's risk-taking and ownership structure - evidence for economics in transition stage 
Abstract:
  Conventional studies assume that inside management plays a major role in
 corporate governance and argue that foreign institutional investors may
 lack incentives to monitor invested firms due to their short-term profit
 orientation. By utilizing 650 observations of Taiwan banks, this study
 examines the effects of specific types of ownership on the risk-taking
 behaviours of banks under differential ownership structures. In light of
 the increasing foreign institution ownership during privatization, this
 article further constructs relative governance strength variables to
 observe how inside management and foreign institutions interact to affect
 these banks' risk-taking. The results show that banks with higher inside
 management ownership and higher government ownership have higher overdue
 loan and lower capital adequacy ratios. Banks with higher foreign
 institution ownership and stronger relative governance strength are
 associated with lower overdue loans and higher regulatory capital. In
 general, the results are consistent regardless of the choice of ownership
 structure or relative governance strength of foreign institutions as
 independent variable. These findings contribute to add evidence for
 risk-taking behaviour manifested by banks in the emerging market, where
 feasible monitoring mechanisms still need to be explored. 
Journal: Applied Economics 
Pages: 1551-1564 
Issue: 12 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903018791 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903018791 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1551-1564




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of trade: introduction and overview 
Abstract:
  We provide an introduction and overview to the eleven applied economics
 studies making up this special themed issue on The applied economics of
 trade. The studies cover a wide range of topics, and employ a variety of
 applied techniques across a range of countries. 
Journal: Applied Economics 
Pages: 1565-1566 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2011.587304 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2011.587304 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1565-1566




Template-Type: ReDIF-Article 1.0
Author-Name: Cristian Boboil&#x103; 
Author-X-Name-First: Cristian 
Author-X-Name-Last: Boboil&#x103; 
Author-Name: Cristea Boboil&#x103; 
Author-X-Name-First: Cristea 
Author-X-Name-Last: Boboil&#x103; 
Title: Functions that model foreign trade during the East-European transition from communism to capitalism 
Abstract:
  Analytical methods generally use a wide range of statistical mathematical
 functions, such as the linear function, the hyperbolic function, the
 higher-order parabolic function and the exponential function to better
 approximate economic trends. The testing of a wide range of functions is
 mandatory, in order to choose the ones that offer the possibility of
 predicting trends more accurately. In the current report, we introduce
 several functions and compare them on datasets concerning foreign trade of
 Romania over the 1996 to 2000 period. We conclude that some of the
 complexities of transitioning from a communist to a capitalist economy, as
 reflected in the foreign trade, are best captured by complex and logistic
 functions defined below. Furthermore, we describe a seasonal variation in
 the volume of trade, which may be characteristic for all transition
 economies in East-European countries. 
Journal: Applied Economics 
Pages: 1567-1577 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802584901 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584901 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1567-1577




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Scott Hegerty 
Author-X-Name-First: Scott 
Author-X-Name-Last: Hegerty 
Title: The J-curve and NAFTA: evidence from commodity trade between the US and Mexico 
Abstract:
  The North American Free Trade Agreement (NAFTA) was predicted to have a
 substantial impact on the US-Mexico trade, especially on specific
 importing and exporting industries. In this article, we use annual
 industry-level export and import data from 1962 to 2004 to discern both
 the short- and long-run effects of real exchange-rate depreciation on the
 Mexico-US trade balance, as well as the effects of NAFTA on this trade. We
 find that peso depreciation has a positive long-run effect on 24 of 102
 Mexican industries and a negative short-run effect on 19 of 102
 industries. Only a small fraction (7 of 102 industries) show any support
 for the J-curve hypothesis. NAFTA has had a significant effect on a
 significant number of the industries, however. 
Journal: Applied Economics 
Pages: 1579-1593 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802360328 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1579-1593




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Bennett 
Author-X-Name-First: Robert 
Author-X-Name-Last: Bennett 
Author-Name: Paul Robson 
Author-X-Name-First: Paul 
Author-X-Name-Last: Robson 
Title: Exploring the use of trade and professional association services 
Abstract:
  This article examines how the services offered by sector business
 associations are used and the impact that they offer. A large-scale survey
 of small- and medium-sized businesses is used to infer how association
 services operate. An important focus is to determine the level at which
 the fixed costs of association services are covered: this defines a
 minimum-size level for associations. This is found to be between one-half
 and one member of staff per thousand businesses in that sector. This is a
 fairly low barrier to market entry by an association, which helps to
 explain the fragmentation of associations. This is further indicated by
 the existence of declining internal economics of scale and scope for
 larger association sizes. This suggests that efforts to stimulate
 association merger and co-operation will continue to meet with limited
 success. 
Journal: Applied Economics 
Pages: 1595-1605 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802599990 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599990 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1595-1605




Template-Type: ReDIF-Article 1.0
Author-Name: David Karemera 
Author-X-Name-First: David 
Author-X-Name-Last: Karemera 
Author-Name: Shunsuke Managi 
Author-X-Name-First: Shunsuke 
Author-X-Name-Last: Managi 
Author-Name: Lucy Reuben 
Author-X-Name-First: Lucy 
Author-X-Name-Last: Reuben 
Author-Name: Ora Spann 
Author-X-Name-First: Ora 
Author-X-Name-Last: Spann 
Title: The impacts of exchange rate volatility on vegetable trade flows 
Abstract:
  Trade flows of commodities are generally affected by the principles of
 comparative advantage in a free trade. However, trade flows might be
 enhanced or distorted not only by various government interventions, but
 also by exchange rate fluctuations among others. This study applies a
 commodity-specific gravity model to selected vegetable trade flows among
 Organization for Economic Co-operation and Development (OECD) countries to
 determine the effects of exchange rate uncertainty on the trade flows.
 Using the data from 1996 to 2002, the results show that, while the
 exchange rate uncertainty significantly reduces trade in the majority of
 commodity flows, there is evidence that both short- and long-term
 volatility have positive effect on trade flows of specific commodities.
 This study also tests the regional preferential trade agreements such as
 the North American Free Trade Agreement (NAFTA), the Asia-Pacific Economic
 Cooperation (APEC) and the EU, and their different effects on commodities. 
Journal: Applied Economics 
Pages: 1607-1616 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600137 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600137 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1607-1616




Template-Type: ReDIF-Article 1.0
Author-Name: Debasri Mukherjee 
Author-X-Name-First: Debasri 
Author-X-Name-Last: Mukherjee 
Author-Name: Susan Pozo 
Author-X-Name-First: Susan 
Author-X-Name-Last: Pozo 
Title: Exchange-rate volatility and trade: a semiparametric approach 
Abstract:
  We use a gravity model to analyse the impact of exchange-rate volatility
 on the volume of bilateral international trade. Semiparametric regression
 methods are applied to the pooled data for over 200 countries. Our results
 indicate that volatility affects trade negatively although at very high
 level of volatility the effect diminishes and eventually becomes
 statistically indistinguishable from zero. Countries apparently find
 avenues to mitigate the detrimental impact of exchange rate uncertainty
 when volatility attains very high levels. These results help reconcile the
 contradictory findings often found in the literature on the impact of
 exchange-rate uncertainty on trade volume. 
Journal: Applied Economics 
Pages: 1617-1627 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600327 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600327 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1617-1627




Template-Type: ReDIF-Article 1.0
Author-Name: Francis Kumah 
Author-X-Name-First: Francis 
Author-X-Name-Last: Kumah 
Title: Real exchange rate assessment in the GCC countries &#x2014; a trade elasticities approach 
Abstract:
  This article adopts new panel econometric methods to assess real exchange
 rate alignment with economic fundamentals in the countries of the Gulf
 Cooperation Council (GCC), using a theoretical approach popularized by
 Paul Krugman in the late 1980s. Results from panel econometric
 applications of the Krugman model yield low levels of real exchange rate
 undervaluation in the GCC countries, although indicating persistence of
 undervaluation - albeit statistically low - into the medium term. They
 also show that the recent real exchange rate undervaluation could be
 characterized as due to 'short-run frictions and adjustment costs'
 associated with continued depreciation of the US dollar to which GCC
 countries' currencies are pegged. Further, failure to find supporting
 evidence for the Marshall-Lerner condition underscores the propriety of
 using fiscal policy rather than exchange rate policy to address recent
 inflationary pressures and help resolve lingering global financial
 imbalances. 
Journal: Applied Economics 
Pages: 1629-1646 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600640 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600640 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1629-1646




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Deloof 
Author-X-Name-First: Marc 
Author-X-Name-Last: Deloof 
Author-Name: Wouter Van Overfelt 
Author-X-Name-First: Wouter 
Author-X-Name-Last: Van Overfelt 
Title: Trade credit and bank relationships: evidence from pre-World War I Belgium 
Abstract:
  We investigate the determinants of trade credit granted by suppliers in a
 historical environment which was characterized by high-information
 asymmetries and strong banks, focusing on the role of bank-firm
 relationships. Our results, which are based on a unique sample of 535
 firm-year observations for 125 listed Belgian firms in four dominant
 industries in the period 1905 to 1909, are generally consistent with the
 financing role of trade credit. They suggest that trade credit was a tool
 for channelling funds from firms with close bank ties to other firms,
 which is consistent with findings for contemporary developing countries. 
Journal: Applied Economics 
Pages: 1647-1655 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903166269 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166269 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1647-1655




Template-Type: ReDIF-Article 1.0
Author-Name: John Francis 
Author-X-Name-First: John 
Author-X-Name-Last: Francis 
Author-Name: Yuqing Zheng 
Author-X-Name-First: Yuqing 
Author-X-Name-Last: Zheng 
Title: Trade liberalization, unemployment and adjustment: evidence from NAFTA using state level data 
Abstract:
  This article specifies a supply and demand model of the labour market to
 examine the effects of North American Free Trade Agreement (NAFTA) on the
 US labour market. Regression results suggest that NAFTA decreased yearly
 unemployment growth by 4.4%. Equivalently, NAFTA brought a structural
 break to the US state level unemployment. The second finding is that the
 labour market began feeling the impact of NAFTA immediately after its
 implementation and the labour market has continued to feel its effects
 probably through 2001. 
Journal: Applied Economics 
Pages: 1657-1671 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903194212 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194212 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1657-1671




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Chalkley 
Author-X-Name-First: Martin 
Author-X-Name-Last: Chalkley 
Author-Name: Geoff Stewart 
Author-X-Name-First: Geoff 
Author-X-Name-Last: Stewart 
Title: International trade and the incentive for merger 
Abstract:
  This article examines the profitability of horizontal merger in an open
 economy with Cournot competition. We find that duopoly is a necessary, but
 not sufficient, condition for domestic merger to be profitable. A
 cross-border merger, however, can be profitable from any market structure. 
Journal: Applied Economics 
Pages: 1673-1677 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903527171 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903527171 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1673-1677




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Bilson Darku 
Author-X-Name-First: Alexander Bilson 
Author-X-Name-Last: Darku 
Title: The impact of trade liberalization and the fiscal equalization transfer policy on provincial income disparities in Canada: an application of GMM estimation 
Abstract:
  This article uses the Solow growth model and the panel data method to
 examine the effect of trade liberalization and the federal equalization
 transfers on income convergence among Canadian provinces between 1981 and
 2006. Estimation problems of weak instruments and endogenous regressors
 are addressed by the use of a system Generalized Method of Moment (GMM)
 estimator. The results from the empirical analysis indicate that the
 current rate of convergence of Personal Income (PI) in Canada is 4.41% per
 year. This rate is considerably higher than the range of 1.80 and 2.41%
 per year that previous studies using least-square estimators have
 reported. The findings from the policy analysis show that the launching
 and expansion of the North America regional integration have
 de-accelerated the convergence speed for Canadian provinces by 3.99 and
 3.15% per year, respectively. However, consistent with the results from
 previous studies, the fiscal transfers, which are part of the federal
 equalization programme, have accelerated the convergence speed for
 Canadian provinces. 
Journal: Applied Economics 
Pages: 1679-1689 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491465 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491465 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1679-1689




Template-Type: ReDIF-Article 1.0
Author-Name: Gianluca Cafiso 
Author-X-Name-First: Gianluca 
Author-X-Name-Last: Cafiso 
Title: Rose effect versus border effect: the Euro's impact on trade 
Abstract:
  The purpose of this article is to test the common finding of a positive
 'Rose Effect' (RE) in the case of the Euro through a comparison with an
 indicator of integration among the Euro Zone (EZ) countries: the 'Border
 Effect' (BE). This study of the Euro's impact using both the RE and the BE
 is a novelty in the literature. Our findings cast doubts about the
 supposed trade-costs reduction caused by the Euro, reduction which is the
 main explanation of the positive RE estimated in several works. Both
 indicators are estimated by means of a gravity model for bilateral trade
 flows using a panel of manufacture exports and production figures. 
Journal: Applied Economics 
Pages: 1691-1702 
Issue: 13 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724437 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724437 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1691-1702




Template-Type: ReDIF-Article 1.0
Author-Name: David Bessler 
Author-X-Name-First: David 
Author-X-Name-Last: Bessler 
Author-Name: James Kolari 
Author-X-Name-First: James 
Author-X-Name-Last: Kolari 
Author-Name: Thein Maung 
Author-X-Name-First: Thein 
Author-X-Name-Last: Maung 
Title: Dynamic linkages among equity markets: local versus basket currencies 
Abstract:
  This article compares the stability of interrelationships among nine
 national equity markets by employing basket currencies versus individual
 base currencies to measure rates of return. We show that the average
 correlations of equity indexes based on basket currencies are much lower
 than the average correlations of equity indexes based on individual home
 base currencies. Additionally, empirical directed graph results from using
 basket currencies are more consistent with each other than the results
 from using different individual currencies. We conclude that basket
 currencies provide more robust results for studying equity market
 comovements than individual currencies. By implication, studies on equity
 market interrelationships, including studies on potential financial
 contagion between equity markets, should use basket currencies to avoid
 currency dependent results. 
Journal: Applied Economics 
Pages: 1703-1719 
Issue: 14 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802631843 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802631843 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1703-1719




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses 
Author-X-Name-First: Philip Hans 
Author-X-Name-Last: Franses 
Title: Model selection for forecast combination 
Abstract:
  In this article it is advocated to select a model only if it
 significantly contributes to the accuracy of a combined forecast. Using
 hold-out-data forecasts of individual models and of the combined forecast,
 a useful test for equal forecast accuracy can be designed. An illustration
 for real-time forecasts for Gross Domestic Profit (GDP) in the Netherlands
 shows its ease of use. 
Journal: Applied Economics 
Pages: 1721-1727 
Issue: 14 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902762753 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902762753 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1721-1727




Template-Type: ReDIF-Article 1.0
Author-Name: Keith Coble 
Author-X-Name-First: Keith 
Author-X-Name-Last: Coble 
Author-Name: Zhijun Yang 
Author-X-Name-First: Zhijun 
Author-X-Name-Last: Yang 
Author-Name: M. Darren Hudson 
Author-X-Name-First: M. Darren 
Author-X-Name-Last: Hudson 
Title: Using experimental economics to evaluate alternative subjective elicitation procedures 
Abstract:
  Managing uncertainty is an unavoidable challenge in a variety of decision
 contexts. If empirical data are available, statistics can be used to
 assist decision-making. If objective data are absent, experts are commonly
 used as a source of subjective probability estimates about the variable of
 interest. In our controlled economic experiment, a web-based software was
 developed and incentive-compatible rewards were applied to participants in
 order to induce rational decision-making. Participants assessed data drawn
 from known distributions and then responded to a subjective probability
 elicitation. The empirical results provide experimentally based guidance
 on elicitation and aggregation techniques that yield the most accurate
 subjective estimates of unknown probabilities. The results can be applied
 to a wide array of decision-making processes involving subjective
 probability analysis. 
Journal: Applied Economics 
Pages: 1729-1736 
Issue: 14 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600632 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600632 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1729-1736




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Beck 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Beck 
Author-Name: Michal Grajek 
Author-X-Name-First: Michal 
Author-X-Name-Last: Grajek 
Author-Name: Christian Wey 
Author-X-Name-First: Christian 
Author-X-Name-Last: Wey 
Title: Estimating level effects in diffusion of a new technology: barcode scanning at the checkout counter 
Abstract:
  Cross-country or cross-industry studies of technology diffusion typically
 estimate how independent factors affect diffusion speed or timing, often
 based on a two-stage approach. In many applications, however, countries
 (industries) differ most in the saturation level of diffusion. In a
 single-stage econometric approach to a standard diffusion model, we
 therefore estimate how the saturation level covaries with independent
 factors. In our application to diffusion of an important retail
 information technology, we focus on the competitive effect of hypermarkets
 (superstores). We also find standard scale, income and labour substitution
 effects. 
Journal: Applied Economics 
Pages: 1737-1748 
Issue: 14 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600624 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600624 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1737-1748




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Niaz Asadullah 
Author-X-Name-First: Mohammad Niaz 
Author-X-Name-Last: Asadullah 
Title: Intra- and inter-household externalities in children's schooling: evidence from rural residential neighbourhoods in Bangladesh 
Abstract:
  This article tests for neighbourhood effects on children's schooling,
 using unique data on rural residential neighbourhoods from Bangladesh. We
 find that school completion of children is positively and significantly
 affected by the mean grade completion of other children in the
 neighbourhood. We then present three pieces of evidence that suggest that
 the social effect offers a valid explanation. Firstly, the evidence we
 find of inter-household externalities is not driven out by control for a
 host of neighbourood and household attributes. Secondly, the result
 remains robust to neighbourhood composition effects: it is unchanged as we
 purge our main sample of the households within the neighbourhood that are
 potentially linked in terms of their recent history of partition. Thirdly,
 a similar peer effect is found for adults who completed schooling before
 the introduction of existing educational reforms in rural areas suggesting
 that the observed effect of growing up in educated neighbourhood does not
 merely capture the influence of common exposure to various government
 educational interventions. As a by-product, the article also provides
 evidence of intra-household externality in children's schooling, net of
 neighbourood externalities. We conclude by discussing the implication of
 these findings for education policy design. 
Journal: Applied Economics 
Pages: 1749-1767 
Issue: 14 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600590 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600590 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1749-1767




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Falbo 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Falbo 
Author-Name: Cristian Pelizzari 
Author-X-Name-First: Cristian 
Author-X-Name-Last: Pelizzari 
Title: Stable classes of technical trading rules 
Abstract:
  Technical analysis includes a huge variety of trading rules. This fact
 has always been a serious hindrance to the large number of market
 efficiency studies implemented either to demonstrate the profitability of
 market-beating systems or to deny their operational feasibility. For
 evident reasons it is practically impossible and theoretically weak to
 systematically analyse the entire body of all trading rules. We therefore
 propose a novel method to form natural classes of trading rules which are
 found to be robust to changing market scenarios. In particular, groups are
 formed adopting a similarity measure based on the investing signals of the
 trading rules. Our clustering methodology adopts a Markov chain
 bootstrapping technique to generate differentiated scenarios preserving
 volume and price joint distributional features. An application is
 developed on a sample of 674 trading rules. Results show that six groups
 (here identified as trading styles) are sufficient to explain the large
 portion of the investing signals variance. We also suggest applications of
 our results to fund performance measurement and the analysis of financial
 markets. 
Journal: Applied Economics 
Pages: 1769-1785 
Issue: 14 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/09603100802676239 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100802676239 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1769-1785




Template-Type: ReDIF-Article 1.0
Author-Name: J. W. Fedderke 
Author-X-Name-First: J. W. 
Author-X-Name-Last: Fedderke 
Author-Name: B. G. Teubes 
Author-X-Name-First: B. G. 
Author-X-Name-Last: Teubes 
Title: Fiscal incentives for research and development 
Abstract:
  It is often argued that since the social return to R&D exceeds the
 private return, the government should provide incentives for R&D
 expenditure. This article considers the issue of the impact of such
 incentives on the fiscal position of the government, using a simple
 comparative static model. In particular, it is argued that it is possible
 that the social return from R&D might be sufficient to allow R&D
 incentives to more than pay for themselves. On the basis of the
 international evidence, the model is calibrated to examine what values of
 the key parameters are required in order for this conclusion to hold. 
Journal: Applied Economics 
Pages: 1787-1800 
Issue: 14 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802631827 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802631827 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1787-1800




Template-Type: ReDIF-Article 1.0
Author-Name: Gulcay Tuna 
Author-X-Name-First: Gulcay 
Author-X-Name-Last: Tuna 
Title: The effectiveness of Central Bank intervention: evidence from Turkey 
Abstract:
  This article investigates the effectiveness of Central Bank intervention
 on the conditional variance and the mean of the exchange rate returns in
 Turkey during the float period. The daily exchange rates are studied
 within an Exponential General Autoregressive Conditional Heteroskedastic
 (EGARCH) framework. Little evidence is found for the effectiveness of
 intervention operations. Empirical results suggest that foreign exchange
 (FX) selling auctions increase exchange rate volatility. However, a
 reverse causality relationship detected between one-day past sales of FX
 auctions and exchange rate returns which is supportive of
 leaning-against-the-wind behaviour of the Central Bank contradicts its
 announcements. Also the Central Bank of Turkey (CBT) tends to intervene
 through FX selling auctions when one-day past volatility is higher. 
Journal: Applied Economics 
Pages: 1801-1815 
Issue: 14 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802676228 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802676228 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1801-1815




Template-Type: ReDIF-Article 1.0
Author-Name: Alaa El-Shazly 
Author-X-Name-First: Alaa 
Author-X-Name-Last: El-Shazly 
Title: Designing an early warning system for currency crises: an empirical treatment 
Abstract:
  This article investigates the predictive power of qualitative response
 models that can serve as the basis for an early warning system for
 currency crises. It employs a signals framework that monitors the
 behaviour of key economic variables and issues a warning when their values
 exceed certain critical levels. The analysis is carried out for a
 parsimonious specification with high-frequency data. Taking Egypt as a
 case study, it is shown that this class of probability models captures to
 a good extent the turbulence in the foreign exchange market and the onset
 of crises. 
Journal: Applied Economics 
Pages: 1817-1828 
Issue: 14 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600657 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600657 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1817-1828




Template-Type: ReDIF-Article 1.0
Author-Name: Yamin Ahmad 
Author-X-Name-First: Yamin 
Author-X-Name-Last: Ahmad 
Author-Name: Stuart Glosser 
Author-X-Name-First: Stuart 
Author-X-Name-Last: Glosser 
Title: Searching for nonlinearities in real exchange rates 
Abstract:
  A recent innovation in modelling exchange rates has been the use of
 nonlinear techniques such as threshold autoregressive models and its
 smooth transition variants. This article investigates the Smooth
 Transition Autoregressive (STAR) modelling strategy in an application to
 real exchange rates. The key findings are as follows. First, using the
 methodology advocated by Terasvirta (1994), we find evidence of nonlinear
 dynamics for several of the spot dollar real exchange rates using monthly
 data on five of the G7 countries. However, once estimated, we find that
 the STAR specification is appropriate for only one of the three exchange
 rate series indicated to be an Exponential Smooth Transition
 Autoregressive (ESTAR) process. Moreover, using simulations, we show that
 the underlying methodology used to detect nonlinearities in the data
 exhibit substantial size biases, which we attribute to influential
 observations. We find, upon investigating alternative nonlinear
 specifications, that the open-loop Threshold Autoregressive (TAR) process
 is a more appropriate specification than the ESTAR process for the
 dollar-sterling and dollar-lira real exchange rates. 
Journal: Applied Economics 
Pages: 1829-1845 
Issue: 15 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902817797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902817797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1829-1845




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Matsumura 
Author-X-Name-First: Marco 
Author-X-Name-Last: Matsumura 
Author-Name: Ajax Moreira 
Author-X-Name-First: Ajax 
Author-X-Name-Last: Moreira 
Title: Assessing macro influence on Brazilian yield curve with affine models 
Abstract:
  Using affine term structure models with latent and observable factors, we
 study the interaction between macro variables and the Brazilian yield
 curve contained in a daily dataset. Two versions of the model are tested,
 one in continuous time and estimated using maximum likelihood with
 Chen-Scott inversion (1993), and the other in discrete time and estimated
 using Monte Carlo-Markov Chain (MCMC) with Kalman filter. The effect of
 the inclusion of macro factors and changes of specification on the
 goodness-of-fit and dynamics are analysed. We conclude that the
 interaction between the macro variables and the yield curve is an
 important element for understanding the dynamics. Also, the choice of
 specification alters the response of the identified shocks. 
Journal: Applied Economics 
Pages: 1847-1863 
Issue: 15 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902762746 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902762746 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1847-1863




Template-Type: ReDIF-Article 1.0
Author-Name: Masashi Hasegawa 
Author-X-Name-First: Masashi 
Author-X-Name-Last: Hasegawa 
Author-Name: Yuichi Fukuta 
Author-X-Name-First: Yuichi 
Author-X-Name-Last: Fukuta 
Title: An empirical analysis of information in the yield spread on future recessions in Japan 
Abstract:
  This article examines whether the yield spread contains information on
 the likelihood of future economic recessions using a probit model by
 taking the stability of the relationship between the yield spread and
 future recessions into account. We also compare the accuracy of
 information in the yield spread with stock returns and money supply. We
 find the following results in this article. First, a structural change in
 the relationship between the yield spread and future recessions occur at
 the end of 1996. Second, whereas the Japanese yield spread contains more
 precise information on future recessions than stock returns and nominal
 money supply before the structural break, we cannot predict future
 recessions using the yield spread after the break. Third, the money supply
 does not forecast future recessions for the entire sample period. 
Journal: Applied Economics 
Pages: 1865-1881 
Issue: 15 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902780136 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902780136 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1865-1881




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Kargbo 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Kargbo 
Title: Capital flows, real exchange rate misalignment and PPP tests in emerging market countries 
Abstract:
  The economic performance of emerging markets has significant impacts on
 economic growth and volatility of macroeconomic indicators in various
 countries. Emerging markets accounted for 20-43% of global exports during
 the period 1970-2005, and held 70% of global foreign reserves in recent
 years. More than 50% of the exports from the Euro area, Japan and the
 United States go to emerging markets and other developing countries. The
 globalization of capital flows is facilitated by technological innovations
 and excellent information networks, coupled with sharp increases in
 savings that are directed into financial instruments across borders. The
 use of Purchasing Power Parity (PPP) as a benchmark in exchange rate
 policy reforms assumes the existence of a stable relationship between the
 exchange rate and the ratio of price levels in two countries. This article
 investigates whether or not long-run PPP holds in emerging markets.
 Johansen's cointegration technique is used with annual data in analysing
 the relationship between exchange rates and the CPI during the period
 1951-2005. We found overwhelming support for long-run PPP in emerging
 markets, thus, PPP is a reliable guide for exchange rate determination and
 exchange rate policy reforms in these countries. 
Journal: Applied Economics 
Pages: 1883-1897 
Issue: 15 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902762761 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902762761 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1883-1897




Template-Type: ReDIF-Article 1.0
Author-Name: Derek Bond 
Author-X-Name-First: Derek 
Author-X-Name-Last: Bond 
Author-Name: Michael Harrison 
Author-X-Name-First: Michael 
Author-X-Name-Last: Harrison 
Author-Name: Edward O'Brien 
Author-X-Name-First: Edward 
Author-X-Name-Last: O'Brien 
Title: Nonlinearity and structural breaks in Irish PPP relationships: an application of random field regression 
Abstract:
  Using nominal and real exchange rates for Ireland relative to Germany and
 the UK from 1975 to 2003, this article explores likely sources of
 nonlinearity in Purchasing Power Parity (PPP) relationships and
 difficulties in employing an I(1)/I(0) econometric framework. Tests for
 fractional integration and nonlinearity, including random field
 regression-based procedures, are applied. Results reveal shortcomings in
 the standard cointegration and smooth transition autoregression approaches
 to modelling, and point to multiple structural changes models. Such a
 model for the case of Ireland and Germany suggests that PPP holds not only
 in the long-run but also in the medium to short term. 
Journal: Applied Economics 
Pages: 1899-1911 
Issue: 15 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902780144 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902780144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1899-1911




Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsen 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Carlsen 
Author-Name: Jostein Grytten 
Author-X-Name-First: Jostein 
Author-X-Name-Last: Grytten 
Author-Name: Irene Skau 
Author-X-Name-First: Irene 
Author-X-Name-Last: Skau 
Title: Physician response to fee changes: using inheritance as a quasi-natural experiment 
Abstract:
  We used data on inheritance received by Norwegian primary care physicians
 and their spouses to study how wealth affects the amount of medical
 treatment provided by fee-for-service physicians. The effect of wealth on
 the number of consultations, and the amount of treatment provided during
 consultations, was small. Our results suggest that the income effect of
 fee changes on service provision of fee-for-service physicians is
 moderate, implying that fee regulation is an effective means of
 controlling spending on primary care physician services. 
Journal: Applied Economics 
Pages: 1913-1922 
Issue: 15 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902837092 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902837092 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1913-1922




Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Feng Lee 
Author-X-Name-First: Cheng-Feng 
Author-X-Name-Last: Lee 
Author-Name: Ching-Chuan Tsong 
Author-X-Name-First: Ching-Chuan 
Author-X-Name-Last: Tsong 
Title: Covariate selection for testing purchasing power parity 
Abstract:
  This article employs Hansen's (1995) Covariate Augmented Dickey-Fuller
 (CADF) test to reexamine the issue of Purchasing Power Parity (PPP) using
 post-Bretton Woods exchange rate data for 20 industrialized countries.
 Instead of just using a single covariate as in the literature, we
 implement the test by using Bai and Ng's (2002) method to choose suitable
 stationary covariates. Our empirical results show that the real exchange
 rates generally display long-run mean reversion and support PPP, as
 contrasted with those obtained in Amara and Papell (2006) that less
 rejections of unit root hypothesis are made with the same test. The panel
 unit root test suggested by Chang (2004) is also performed to justify our
 results. 
Journal: Applied Economics 
Pages: 1923-1933 
Issue: 15 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902837100 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902837100 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1923-1933




Template-Type: ReDIF-Article 1.0
Author-Name: Yen-Hsien Lee 
Author-X-Name-First: Yen-Hsien 
Author-X-Name-Last: Lee 
Author-Name: Chien-Liang Chiu 
Author-X-Name-First: Chien-Liang 
Author-X-Name-Last: Chiu 
Title: Arbitrage behaviour in the exchange rates of Taiwan and Japan: applying the smooth transition vector error correction model with GJR-GARCH and spillover volatility 
Abstract:
  This study utilizes a Smooth Transition Vector Error Correction Model
 (STVECM) with Glosten-Jagannathan-Runkle-Generalized Autoregressive
 Conditional Heteroscedasticity (GJR-GARCH) and spillover volatility to
 investigate the changes in short-run return dynamics when a deviation from
 the comovement equilibrium between the prices of New Taiwan Dollar (NTD)
 and Japan Yen (JPY) exists. Empirical results demonstrated that both
 exchange rates have a nonlinear relationship with the comovement
 equilibrium, which was captured by the Logistic Smooth Transition Vector
 Error Correction Model with GJR-GARCH and Spillover Volatility
 (LSTVECM-GJR-GARCH-SV). Both exchange rates will quickly reverse to
 equilibrium when there are large deviations between the two exchange
 rates, implying that information traders obtain profit in two markets, and
 then both exchange rates continue to deviate from equilibrium when small
 deviations exist from comovement, owing to noise trader to expand
 mispricing. Moreover, small and large deviations may have obvious
 differences and adjustment speeds when reverting to equilibrium for large
 negative and large positive deviations. Thus, this study applied
 LSTVECM-GJR-GARCH-SV to elucidate arbitrage behaviour. 
Journal: Applied Economics 
Pages: 1935-1943 
Issue: 15 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902902235 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902902235 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1935-1943




Template-Type: ReDIF-Article 1.0
Author-Name: William Cheung 
Author-X-Name-First: William 
Author-X-Name-Last: Cheung 
Author-Name: Keith Lam 
Author-X-Name-First: Keith 
Author-X-Name-Last: Lam 
Author-Name: HangFai Yeung 
Author-X-Name-First: HangFai 
Author-X-Name-Last: Yeung 
Title: Intertemporal profitability and the stability of technical analysis: evidences from the Hong Kong stock exchange 
Abstract:
  This study investigates the impact of market integration on the
 profitability of two simple and popular technical trading rules, the
 Simple Moving Average (SMA) and the Trading Range Break (TRB) in Hong
 Kong. Using data from 1972 to 2006, we find that the SMA (1, 50)
 consistently outperforms the market before the integration of stock
 exchanges in 1986. Under the (1, 50) rule, a variable length moving
 average performs better than the fixed length moving average rule by 2.5
 to 5% (annual) before transaction costs because it includes the
 information of the first 9 days into investors' decision. The results are
 robust to the out of sample tests for the validity of the profitability of
 the trading rules. The returns of the trading range break rules are
 insignificant over the 35-year span. Our results support the conjecture
 that stock market integration may lead to better information efficiency.
 The findings of significant pre-1986 profits and insignificant post-1986
 profits, contradict previous findings that returns are predictable in Hong
 Kong, suggesting that the Hong Kong stock market may be weak-form
 efficient after 1986. Overall, our results suggest that technical analysis
 matters for asset pricing. 
Journal: Applied Economics 
Pages: 1945-1963 
Issue: 15 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902817805 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902817805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1945-1963




Template-Type: ReDIF-Article 1.0
Author-Name: Heng Chen 
Author-X-Name-First: Heng 
Author-X-Name-Last: Chen 
Author-Name: Dietrich Fausten 
Author-X-Name-First: Dietrich 
Author-X-Name-Last: Fausten 
Author-Name: Wing-Keung Wong 
Author-X-Name-First: Wing-Keung 
Author-X-Name-Last: Wong 
Title: Evolution of the Trans-Atlantic exchange rate before and after the birth of the Euro and policy implications 
Abstract:
  The establishment of the Euro could present a challenge to the hegemony
 of the US Dollar as the predominant international currency. The fact that
 the unipolar US Dollar dominated international monetary system can be
 unstable in the presence of large shocks presents an opportunity for the
 Euro to promote systemic stability. The present study pursues this
 conjecture by exploring with cointegration and Error Correction Method
 techniques, the interdependence between the dynamics of the Dollar/Euro
 exchange rate and economic fundamentals in the context of a monetary
 exchange rate model. Our results suggest that both short-run (price
 stickiness) and long-run (secular growth) fundamentals affect the exchange
 rate path. These findings support a relatively broad-based policy approach
 to promote the collective economic interest of the EU-zone. To the extent
 that such policies succeed in strengthening and stabilizing the Euro-zone
 economy, they are likely to buttress and possibly accelerate the
 internationalization of the Euro. 
Journal: Applied Economics 
Pages: 1965-1977 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902845509 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902845509 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:1965-1977




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Zubaidi Baharumshah 
Author-X-Name-First: Ahmad Zubaidi 
Author-X-Name-Last: Baharumshah 
Author-Name: Chan Tze Haw 
Author-X-Name-First: Chan Tze 
Author-X-Name-Last: Haw 
Author-Name: A.Mansur M. Masih 
Author-X-Name-First: A.Mansur M. 
Author-X-Name-Last: Masih 
Author-Name: Evan Lau 
Author-X-Name-First: Evan 
Author-X-Name-Last: Lau 
Title: Financial integration of East Asian economies: evidence from real interest parity 
Abstract:
  In this article, we investigate the financial linkages between the East
 Asian economies with Japan and the United States. We test for long-run
 Real Interest-rate Parity (RIP) using an array of panel-data techniques,
 including recent techniques developed by Breuer et al. (2002) and
 Carrion-i-Silvestre et al. (2005). This study offers two important
 results: first, the failure to account for structural breaks in the
 industrialized countries and Asian emerging economies is likely to provide
 evidence of nonstationary series that are stationary. Second, we found
 strong evidence that the parity condition holds in all the Asian
 countries. The failure of earlier studies to confirm mean reversion of
 Real Interest-rate Differential (RID) may reflect the choice of
 estimation/testing procedure rather than any inherent deficiency in the
 RIP. 
Journal: Applied Economics 
Pages: 1979-1990 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902902243 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902902243 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:1979-1990




Template-Type: ReDIF-Article 1.0
Author-Name: Garry MacDonald 
Author-X-Name-First: Garry 
Author-X-Name-Last: MacDonald 
Author-Name: Andy Mullineux 
Author-X-Name-First: Andy 
Author-X-Name-Last: Mullineux 
Author-Name: Rudra Sensarma 
Author-X-Name-First: Rudra 
Author-X-Name-Last: Sensarma 
Title: Asymmetric effects of interest rate changes: the role of the consumption-wealth channel 
Abstract:
  This article examines the role of the consumption-wealth channel in
 explaining asymmetric effects of monetary policy changes. Towards this
 end, we draw upon available literature on the consumption function and
 behavioural finance to construct a framework for asymmetric effects of
 monetary policy caused by the impact of wealth changes on aggregate
 consumption. We then employ data from the UK to examine the validity of
 the proposed framework. In the context of a liberalized economy with easy
 access to consumer credit, wealth reduction due to monetary tightening is
 expected to have weaker impact on spending than increase in wealth. Our
 results validate the above hypothesis. 
Journal: Applied Economics 
Pages: 1991-2001 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902950572 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902950572 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:1991-2001




Template-Type: ReDIF-Article 1.0
Author-Name: Mingshu Hua 
Author-X-Name-First: Mingshu 
Author-X-Name-Last: Hua 
Author-Name: Chen-Yu Li 
Author-X-Name-First: Chen-Yu 
Author-X-Name-Last: Li 
Title: The intraday bid-ask spread behaviour of the JPY/USD exchange rate in the EBS electronic brokerage system 
Abstract:
  Using a sophisticated tool of the Periodic-Generalized Autoregressive
 Conditional Heteroscedastic (P-GARCH) model, this article investigates the
 market institutional effects of the determining role of trading activities
 and exchange rate volatility on the intraday behaviour of the 15-minute
 JPY/USD exchange rate bid-ask spreads in the Electronic Broking Service
 (EBS) of electronic brokerage market for the period from 1 January 2003 to
 31 December 2005. We find that the exchange rate volatility both
 significantly and positively affects the bid-ask spreads, while the number
 of deals and quotation changes negatively affect the bid-ask spreads.
 These results are similar to those of past studies. We also find that a
 U-shaped pattern exists in the Tokyo trading hours and an inverted
 U-shaped pattern in the London trading hours, in addition to a round clock
 inverted U-shaped pattern of spread volatility. This inverted U-shaped
 pattern may be caused by unexpected news arrivals. The spread behaviour of
 the EBS global electronic broking market is not different from that of
 other electronic interdealer quotation markets and electronic broking
 markets. 
Journal: Applied Economics 
Pages: 2003-2013 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902967576 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902967576 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2003-2013




Template-Type: ReDIF-Article 1.0
Author-Name: Alice Ouyang 
Author-X-Name-First: Alice 
Author-X-Name-Last: Ouyang 
Author-Name: Ramkishen Rajan 
Author-X-Name-First: Ramkishen 
Author-X-Name-Last: Rajan 
Title: Reserve accumulation and monetary sterilization in Singapore and Taiwan 
Abstract:
  Asian economies have embraced the globalization of production, trade and
 capital flows. One dimension of contemporary globalization has been the
 heavy exchange rate management by, and rapid and massive stockpiling of,
 foreign exchange reserves in Asia. This article undertakes an empirical
 investigation to assess the extent of de facto sterilization and capital
 mobility in Singapore and Taiwan using quarterly data between 1990 and
 2008. Our empirical results suggest that, since, 2001 both Singapore and
 Taiwan have a high degree of - but not perfect - de facto capital
 mobility. To date, this high-effective capital mobility has not undermined
 the ability of the central bank in either economies to sterilize their
 respective foreign exchange intervention but may make the process
 increasingly difficult over time. 
Journal: Applied Economics 
Pages: 2015-2031 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902984373 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902984373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2015-2031




Template-Type: ReDIF-Article 1.0
Author-Name: Mariani Abdul-Majid 
Author-X-Name-First: Mariani 
Author-X-Name-Last: Abdul-Majid 
Author-Name: David Saal 
Author-X-Name-First: David 
Author-X-Name-Last: Saal 
Author-Name: Giuliana Battisti 
Author-X-Name-First: Giuliana 
Author-X-Name-Last: Battisti 
Title: The impact of Islamic banking on the cost efficiency and productivity change of Malaysian commercial banks 
Abstract:
  This study employs Stochastic Frontier Analysis (SFA) to analyse
 Malaysian commercial banks during 1996-2002, and particularly focuses on
 determining the impact of Islamic banking on performance. We derive both
 net and gross efficiency estimates, thereby demonstrating that differences
 in operating characteristics explain much of the difference in costs
 between Malaysian banks. We also decompose productivity change into
 efficiency, technical, and scale change using a generalized Malmquist
 productivity index. On average, Malaysian banks experience moderate scale
 economies and annual productivity change of 2.68%, with the latter driven
 primarily by Technical Change (TC), which has declined over time. Our
 gross efficiency estimates suggest that Islamic banking is associated with
 higher input requirements. However, our productivity estimates indicate
 that full-fledged Islamic banks have overcome some of these cost
 disadvantages with rapid TC, although this is not the case for
 conventional banks operating Islamic windows. Merged banks are found to
 have higher input usage and lower productivity change, suggesting that
 bank mergers have not contributed positively to bank performance. Finally,
 our results suggest that while the East Asian financial crisis had a
 short-term cost-reducing effect in 1998, the crisis triggered a
 long-lasting negative impact by increasing the volume of nonperforming
 loans. 
Journal: Applied Economics 
Pages: 2033-2054 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902984381 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902984381 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2033-2054




Template-Type: ReDIF-Article 1.0
Author-Name: Jie Li 
Author-X-Name-First: Jie 
Author-X-Name-Last: Li 
Author-Name: Alice Ouyang 
Author-X-Name-First: Alice 
Author-X-Name-Last: Ouyang 
Title: Currency crises: can high reserves offset vulnerable fundamentals? 
Abstract:
  First generation crisis models suggest that the size of international
 reserves affects only the timing of a crisis while second generation
 models imply that higher reserves can reduce the probability of a crisis.
 First in the literature, this article suggests the 'rolling probit model'
 to successfully demonstrate that high reserves can be effective in
 offsetting vulnerable fundamentals in a vulnerable zone. The more
 vulnerable fundamentals in the vulnerable zone require higher levels of
 international reserves to reduce the probability of a crisis. If the
 fundamentals are sufficiently bad, the level of needed reserves may be
 explosive, which makes a crisis unavoidable. Unlike the arbitrary
 proposals of reserve adequacy measures in current literature, this article
 also sheds light on such measures based on the relationship between
 vulnerable fundamentals and high reserves. 
Journal: Applied Economics 
Pages: 2055-2069 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902984399 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902984399 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2055-2069




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Title: Are shocks to tourism transitory at business cycle horizons? 
Abstract:
  The goal of this article is to propose a theoretical framework based on a
 macro model that can be used to examine the relative importance of
 permanent and transitory shocks in explaining variations in tourist
 expenditure and Gross Domestic Product (GDP) at business cycle horizons.
 We estimate the model for Australia. Our findings reveal a common-trend
 and common-cycle relationship among tourist expenditure and GDP, and the
 variance decomposition analysis of shocks reveals that at business cycle
 horizons permanent shocks explain the bulk of the variations in output,
 while transitory shocks explain the bulk of the variations in tourist
 expenditure. 
Journal: Applied Economics 
Pages: 2071-2077 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903035951 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903035951 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2071-2077




Template-Type: ReDIF-Article 1.0
Author-Name: Myoung Shik Choi 
Author-X-Name-First: Myoung Shik 
Author-X-Name-Last: Choi 
Title: Momentary exchange rate locked in a triangular mechanism of international currency 
Abstract:
  This study uses two-way quoted data on major and nonmajor currencies to
 test the exchange rate dynamics. Particular attention is paid to the
 arbitrage and the spread in triangular foreign exchange trades. There is
 only one possible triangle when a bilateral exchange rate equals its
 trilateral rate. Otherwise, any third currency would potentially create
 arbitrage opportunities. Empirical testing evidence supports that small
 but possibly exploitable profitable arbitrage has significantly occurred
 over the very short haul of uncertainty and turbulence. In other words, we
 are convinced that the bilateral exchange rate could be diverged from one
 common currency side of the trilateral basket rates until markets function
 efficiently. This helps in better explaining foreign exchange rate
 movements. In addition, we find that the currency correlating decreases
 slightly but the volatility increases over time, as we expected. 
Journal: Applied Economics 
Pages: 2079-2087 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903035969 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903035969 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2079-2087




Template-Type: ReDIF-Article 1.0
Author-Name: Javed Younas 
Author-X-Name-First: Javed 
Author-X-Name-Last: Younas 
Author-Name: Debasish Chakraborty 
Author-X-Name-First: Debasish 
Author-X-Name-Last: Chakraborty 
Title: Globalization and the Feldstein-Horioka puzzle 
Abstract:
  Capital account liberalization and the integration of world financial
 markets should increase capital mobility across countries. This article
 uses the Feldstein-Horioka savings-investment methodology to examine the
 impact of economic globalization on the degree of capital mobility in 99
 countries over the period 1970 to 2005. Our findings suggest that economic
 openness and financial market integration have led to increased capital
 mobility in developed as well as developing countries. However, their
 effect appears to be larger for the latter. This also implies that
 countries with more financial openness can run higher current account
 deficits due to better access to external capital markets. Our results
 also support the previous findings that foreign aid supplements domestic
 savings for investment in developing countries. 
Journal: Applied Economics 
Pages: 2089-2096 
Issue: 16 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903035985 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903035985 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2089-2096




Template-Type: ReDIF-Article 1.0
Author-Name: Bram van Dijk 
Author-X-Name-First: Bram 
Author-X-Name-Last: van Dijk 
Author-Name: Philip Hans Franses 
Author-X-Name-First: Philip Hans 
Author-X-Name-Last: Franses 
Author-Name: Richard Paap 
Author-X-Name-First: Richard 
Author-X-Name-Last: Paap 
Author-Name: Dick van Dijk 
Author-X-Name-First: Dick 
Author-X-Name-Last: van Dijk 
Title: Modelling regional house prices 
Abstract:
  We develop a panel model for regional house prices, for which both the
 cross-section and the time series dimension is large. The model allows for
 stochastic trends, cointegration, cross-equation correlations and, most
 importantly, latent-class clustering of regions. Class membership is fully
 data-driven and based on the average growth rates of house prices, and the
 relationship of house prices with economic growth. We apply the model to
 quarterly data for the Netherlands. The results suggest that there is
 convincing evidence for the existence of two distinct clusters of regions
 with pronounced differences in house price dynamics. 
Journal: Applied Economics 
Pages: 2097-2110 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903085089 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903085089 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2097-2110




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Musolesi 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Musolesi 
Author-Name: Mario Nosvelli 
Author-X-Name-First: Mario 
Author-X-Name-Last: Nosvelli 
Title: Long-run water demand estimation: habits, adjustment dynamics and structural breaks 
Abstract:
  This article examines a water demand equation for Milan for the second
 half of the 20th century: 1950-2001. We focus mainly on the effects of
 price and habits, but also account for other factors in the demand for
 water such as climate, income and productive activity. Allowing for trend
 break stationarity or nonlinear trend stationarity, we find evidence
 against the unit root hypothesis for many time series. Based on this
 result, standard cointegration analysis would not be appropriate;
 therefore we adopt an alternative estimation and testing procedure. We
 focus, in particular, on the so-called bounds testing approach, which can
 be applied irrespective of the level of integration of the variables and
 which can be a useful modelling strategy given that dynamics are important
 when estimating a water demand equation. The main results are that
 long-run price elasticity is higher than short-run elasticity, and that
 consumption habits are relevant. We also find that both climate, sectoral
 and technological modifications affect water consumption, while income is
 not significant. Finally, the changes to pricing schemes in the mid-1970s
 provoked reactions of different magnitudes among households and firms. 
Journal: Applied Economics 
Pages: 2111-2127 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903066642 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903066642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2111-2127




Template-Type: ReDIF-Article 1.0
Author-Name: Roy Brouwer 
Author-X-Name-First: Roy 
Author-X-Name-Last: Brouwer 
Title: A mixed approach to payment certainty calibration in discrete choice welfare estimation 
Abstract:
  This article provides further empirical evidence of payment uncertainty
 in dichotomous choice (DC) Contingent Valuation (CV) and proposes an
 alternative way of certainty calibration, moving away from conventional
 recoding of uncertain responses. In an international CV application, the
 main sources of payment uncertainty are identified related to imperfect
 knowledge and information about the public good involved, future supply
 levels, income constraints, price levels and the survey instrument.
 Together these sources of uncertainty are responsible for a third of the
 error variance in the estimated discrete choice model. Accounting for the
 heterogeneity induced by payment uncertainty in the welfare estimation
 procedure with the help of a mixed probit model yields a significantly
 lower welfare measure albeit at the expense of estimation precision. 
Journal: Applied Economics 
Pages: 2129-2142 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903035977 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903035977 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2129-2142




Template-Type: ReDIF-Article 1.0
Author-Name: Rainer Frey 
Author-X-Name-First: Rainer 
Author-X-Name-Last: Frey 
Author-Name: Katrin Hussinger 
Author-X-Name-First: Katrin 
Author-X-Name-Last: Hussinger 
Title: European market integration through technology-driven M&As 
Abstract:
  Merger and Acquisitions (M&As) have been an important tool for
 reorganizing the European market since the establishment of European
 Economic and Monetary Union. This article suggests that European
 integration helped and encouraged European firms to source technology
 across national borders in Europe, establishing European innovative firms.
 The figures confirm that, once barriers impeding the free movement of
 capital, goods and labour had fallen, European firms used M&As intensively
 to enter foreign European markets. Enhancing technology competencies is
 found to be one of the main motives for cross-border acquisitions in the
 1990s but is not a factor in domestic acquisitions over the same period. 
Journal: Applied Economics 
Pages: 2143-2153 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903153796 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2143-2153




Template-Type: ReDIF-Article 1.0
Author-Name: Lukasz Grzybowski 
Author-X-Name-First: Lukasz 
Author-X-Name-Last: Grzybowski 
Title: Screening competition in mobile telephony&#x2020; 
Abstract:
  This article presents a simple method for screening competition in
 differentiated products oligopoly with a small number of competitors. In
 many situations, estimation of price elasticities of demand may be
 impossible due to difficulties in defining demand or missing data on
 sales. However, even without information on price elasticities, in certain
 situations it is possible to test for the static noncooperative
 Nash-Bertrand equilibrium, which in the case of rejection, may be
 important screening information for antitrust authorities. The static
 noncooperative Nash-Bertrand equilibrium may be rejected when demand is
 linear and in the estimation of best-response functions, the coefficients
 on the competitors' prices are statistically greater than 0.5. The
 application of this method is illustrated by the example of German mobile
 telephony using monthly data between January 1998 and December 2002.
 According to the estimation results, the observed prices in the segment of
 low-users cannot be the outcome of a static noncooperative Nash-Bertrand
 equilibrium. 
Journal: Applied Economics 
Pages: 2155-2163 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903153788 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2155-2163




Template-Type: ReDIF-Article 1.0
Author-Name: A. Assaf 
Author-X-Name-First: A. 
Author-X-Name-Last: Assaf 
Title: A fresh look at the productivity and efficiency changes of UK airlines 
Abstract:
  This article uses the bootstrapped Malmquist index methodology to measure
 and test the extent of efficiency and productivity changes in the UK
 airline sector. The aim of the bootstrap method is to overcome the
 statistical limitations of the Data Envelopment Analysis (DEA) method,
 generally used to measure the distance functions of the Malmquist index.
 In applying the method we use input/output data on a sample of major UK
 airlines for the period 2004-2007. Results showed that most airlines have
 witnessed significant decrease in their productivity, efficiency, scale
 and technology measures. Using a second stage Tobit regression, this
 article attributed the sources of productivity and efficiency changes to
 factors such as stage length, load factor and airline size. This article
 also discussed the negative impacts of oil price using illustrations from
 the UK and other international airlines. 
Journal: Applied Economics 
Pages: 2165-2175 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903085071 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903085071 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2165-2175




Template-Type: ReDIF-Article 1.0
Author-Name: Markus Leibrecht 
Author-X-Name-First: Markus 
Author-X-Name-Last: Leibrecht 
Author-Name: Johann Scharler 
Author-X-Name-First: Johann 
Author-X-Name-Last: Scharler 
Title: Borrowing constraints and international risk sharing: evidence from asymmetric error-correction 
Abstract:
  We analyse the adjustment process of consumption growth after
 disequilibrating output shocks in a sample of Organization for Economic
 Cooperation and Development (OECD) countries. In particular, we test the
 hypothesis that consumption is smoothed to a lesser degree after negative
 shocks, whereas the impact of a positive shock is delayed for a longer
 period of time. Our analysis is based on an error-correction framework
 that allows for asymmetric adjustment. We find that the mean adjustment
 lag after a negative shock is significantly shorter than after a positive
 shock, especially since the beginning of the 1980s. This result is
 consistent with the interpretation that borrowing constraints limit the
 degree to which the impact of negative shocks on consumption can be
 smoothed. 
Journal: Applied Economics 
Pages: 2177-2184 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903103692 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903103692 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2177-2184




Template-Type: ReDIF-Article 1.0
Author-Name: Ujo Goto 
Author-X-Name-First: Ujo 
Author-X-Name-Last: Goto 
Author-Name: Colin McKenzie 
Author-X-Name-First: Colin 
Author-X-Name-Last: McKenzie 
Title: Deregulation and strategic complements: Japanese gasoline market 
Abstract:
  The purpose of this article is to provide an explanation for the success
 of deregulation implemented in the Japanese oil industry by investigating
 the economic norm in Japanese gasoline market, namely, how a firm expects
 its rivals to react when the firm changes its output decisions. Using the
 conjectural opponent's reaction, this article investigates whether the
 economic norm in Japanese gasoline market is strategic complements or
 strategic substitutes. It is found that the economic norm in the Japanese
 gasoline market over the period 1992 to 2003 is strategic complements,
 that is, 'Do it, since everyone else is doing it'. It is suggested that
 some of the fall in gasoline prices said to result from successful
 deregulation should really be attributed to the production expansion
 derived from this strategic complementarity. 
Journal: Applied Economics 
Pages: 2185-2192 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903103700 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903103700 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2185-2192




Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Chih Chang 
Author-X-Name-First: Ching-Chih 
Author-X-Name-Last: Chang 
Author-Name: Tin-Chia Lai 
Author-X-Name-First: Tin-Chia 
Author-X-Name-Last: Lai 
Title: Nonlinear model for Panamax secondhand ship 
Abstract:
  Hitherto, scholarly analyses of secondhand ship prices in the
 international dry bulk market have focused on Capesize. This article
 adopts a nonlinear model based on the well-known Gaussian distribution
 theory, with a view to examine Panamax activity from January 1996 to
 December 2007. According to X-11 and Phase Average Trend (PAT) analysis,
 three whole cycles were discernible during the study period. Three
 nonlinear prediction models are developed, which are commensurate with
 these findings. Evidently, the empirical results match the inflated
 predictions of the models, with the Mean Absolute Percentage Error (MAPE)
 falling below 20%. 
Journal: Applied Economics 
Pages: 2193-2198 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903120670 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903120670 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2193-2198




Template-Type: ReDIF-Article 1.0
Author-Name: William Lin 
Author-X-Name-First: William 
Author-X-Name-Last: Lin 
Author-Name: Shih-Chuan Tsai 
Author-X-Name-First: Shih-Chuan 
Author-X-Name-Last: Tsai 
Author-Name: David Sun 
Author-X-Name-First: David 
Author-X-Name-Last: Sun 
Title: Price informativeness and predictability: how liquidity can help 
Abstract:
  Information asymmetry and liquidity concentration has been widely
 discussed in literatures. This study shows how liquidity influences not
 only forecasting performances of term structure estimation, but also
 information transmission and price adjustment across markets. Our analysis
 helps understanding how extreme market movements affect one another. This
 study examines, and provides a rationale for incorporating, liquidity in
 estimating term structure. Forecasting performance can be greatly enhanced
 when conditioning on trading liquidity. It reduces information asymmetry
 in the sense of Easley and O'Hara (2004) and Burlacu et al. (2007). We
 adopt a time series forecasting model following Diebold and Li (2006) to
 compare behaviour of forecasted price errors. Our findings indicate that
 forecasted price errors in markets with less depth would influence those
 with more. Information asymmetry induces volatile trading first and then
 price adjustment is transmitted to another market due to insufficient
 market depth. Cross-market price adjustment could be as much as 21 bps on
 average. Compared with previous studies, our results establish a valid
 reason to condition on liquidity when forecasting prices. 
Journal: Applied Economics 
Pages: 2199-2217 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903153812 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153812 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2199-2217




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Gwin 
Author-X-Name-First: Carl 
Author-X-Name-Last: Gwin 
Author-Name: David VanHoose 
Author-X-Name-First: David 
Author-X-Name-Last: VanHoose 
Title: Search costs, sticky prices and markups 
Abstract:
  This article investigates how search costs, price stickiness and product
 durability influence the impact of inflation on firm markups. We provide
 evidence that each of these three factors plays an independent role in
 influencing the responsiveness of markups to inflation. Although we find
 that the direct effect of inflation on markups is negative, offsetting
 positive influences of inflation on markups arise in industries that
 produce durable experience goods with flexible prices. Thus, our results
 indicate that markups of industries producing nondurable search goods with
 sticky prices tend to experience unambiguously negative impacts from
 inflation. 
Journal: Applied Economics 
Pages: 2219-2228 
Issue: 17 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903153820 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153820 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2219-2228




Template-Type: ReDIF-Article 1.0
Author-Name: Sara Allin 
Author-X-Name-First: Sara 
Author-X-Name-Last: Allin 
Author-Name: Cristina Masseria 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Masseria 
Author-Name: Elias Mossialos 
Author-X-Name-First: Elias 
Author-X-Name-Last: Mossialos 
Title: Equity in health care use among older people in the UK: an analysis of panel data 
Abstract:
  This article uses panel data to investigate the extent of income-related
 inequity in the likelihood of visiting a General Practitioner (GP),
 specialist, dentist and hospital among individuals aged 65 years and over
 in the UK. The probability of accessing health care is predicted with
 separate random effects probit panel models using data from the British
 Household Panel Survey (BHPS) for the period 1998 to 2006. We use
 well-established methods based on the concept of the concentration curve
 to compare the cumulative distribution of health care utilization with the
 cumulative distribution of the population ranked by income. The results
 find evidence for inequity in specialist and dental care, but only slight
 inequity for GP care and not significant inequity in hospital admissions.
 Levels of inequity are highest for specialist and dental care, even when
 users of the private sector are excluded from analyses. The Mobility Index
 (MI) is also used to compare short- and long-run estimates of inequities
 and show that upwardly income mobile individuals contribute to inequity in
 the long run. 
Journal: Applied Economics 
Pages: 2229-2239 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903196621 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903196621 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2229-2239




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Dolan 
Author-X-Name-First: Paul 
Author-X-Name-Last: Dolan 
Author-Name: Aki Tsuchiya 
Author-X-Name-First: Aki 
Author-X-Name-Last: Tsuchiya 
Title: Determining the parameters in a social welfare function using stated preference data: an application to health 
Abstract:
  One way in which economists might determine how best to balance the
 competing objectives of efficiency and equality is to specify a Social
 Welfare Function (SWF). This article looks at how the stated preferences
 of a sample of the general public can be used to estimate the shape of the
 SWF in the domain of health benefits. The results suggest that people are
 willing to make trade-offs between efficiency and equality and that these
 trade-offs are sensitive to what kind of inequalities exist and to the
 groups across which those inequalities exist. 
Journal: Applied Economics 
Pages: 2241-2250 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903166244 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166244 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2241-2250




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Hanson 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Hanson 
Author-Name: Martin Schmidt 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schmidt 
Title: The impact of Coalition offensive operations on the Iraqi insurgency 
Abstract:
  Coalition offensive operations in Iraq seek to disrupt insurgents and
 their networks, but may also act as a recruitment tool for the insurgency.
 We use data from Coalition press releases and casualty reports to assess
 the total impact of these operations. We find that two additional
 offensive operations come at a future cost of an additional Coalition
 soldier's life. The evidence suggests that rather than diminishing the
 insurgents' appetite to wage counterattacks, these operations may act as a
 recruitment tool for the insurgency. We further find that while the
 insurgents change their level of operations in response to the Coalition,
 the Coalition does not react to the insurgents. 
Journal: Applied Economics 
Pages: 2251-2265 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903153804 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2251-2265




Template-Type: ReDIF-Article 1.0
Author-Name: A. Assaf 
Author-X-Name-First: A. 
Author-X-Name-Last: Assaf 
Title: Accounting for technological differences in modelling the performance of airports: a Bayesian approach 
Abstract:
  This article uses the innovative Bayesian random coefficient frontier
 model to account for technological differences in the efficiency
 measurement of UK airports. In separating cost efficiency from
 technological differences, the model provides more accurate efficiency
 measures for airports' policy makers. The input/output data used in
 testing the model reflect on recent figures from the UK airport industry,
 and as a result link the efficiency measures with the current industry
 trends such as the increase in oil price, airport capital investments and
 market expansion. Results from the model estimation showed that the model
 fits the data well with all coefficients correctly signed and in line with
 the theoretical requirements. The average cost efficiency for 2007 was
 around 73.73%, indicating that UK airports are not operating close to a
 full efficiency level. This article attributed the sources of
 inefficiencies to the current industry trends and discussed the importance
 of heterogeneity in future policy formulations at UK airports. 
Journal: Applied Economics 
Pages: 2267-2275 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903101779 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903101779 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2267-2275




Template-Type: ReDIF-Article 1.0
Author-Name: Thanh Le 
Author-X-Name-First: Thanh 
Author-X-Name-Last: Le 
Author-Name: Philip Bodman 
Author-X-Name-First: Philip 
Author-X-Name-Last: Bodman 
Title: Remittances or technological diffusion: which drives domestic gains from brain drain? 
Abstract:
  This article examines the impact of technological diffusion and
 international migrants' remittances on the economic development of
 less-developed countries. The hypothesis that skilled workers, living and
 working overseas, can effectively channel technological knowledge back to
 their home country, which in turn contributes to that country's economic
 growth, is tested utilizing data on the stock of high-skilled workers from
 50 developing countries working in industrialized countries over the last
 two decades. Results obtained lend strong support to this hypothesis. In
 addition, the effect that remittances from workers in developed countries,
 which are used for investment purposes in developing countries, have on
 the rate of growth of those developing economies is investigated. Our
 empirical evidence indicates that this remittance channel exerts a
 significant, positive impact on growth, although quantitatively the
 contribution of such investment-oriented remittances in driving
 sustainable economic development appears to be somewhat smaller than that
 of more general technological diffusion. 
Journal: Applied Economics 
Pages: 2277-2285 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903153838 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2277-2285




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Creel 
Author-X-Name-First: Michael 
Author-X-Name-Last: Creel 
Author-Name: Montserrat Farell 
Author-X-Name-First: Montserrat 
Author-X-Name-Last: Farell 
Title: Modelling usage of medical care services: the medical expenditure panel survey data, 1996-2000 
Abstract:
  We explore the determinants of usage of six different types of health
 care services, using the Medical Expenditure Panel Survey (MEPS) data,
 years 1996-2000. We apply a number of models for univariate count data,
 including semiparametric, semi-nonparametric and finite mixture models. We
 find that the complexity of the model that is required to fit the data
 well depends upon the way in which the data is pooled across sexes and
 over time, and upon the characteristics of the usage measure. Pooling
 across time and sexes is almost always favoured, but when more
 heterogeneous data is pooled it is often the case that a more complex
 statistical model is required. 
Journal: Applied Economics 
Pages: 2287-2302 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903166202 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166202 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2287-2302




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre-Guillaume Meon 
Author-X-Name-First: Pierre-Guillaume 
Author-X-Name-Last: Meon 
Author-Name: Friedrich Schneider 
Author-X-Name-First: Friedrich 
Author-X-Name-Last: Schneider 
Author-Name: Laurent Weill 
Author-X-Name-First: Laurent 
Author-X-Name-Last: Weill 
Title: Does taking the shadow economy into account matter when measuring aggregate efficiency? 
Abstract:
  We analyse how adding the shadow economy to official output figures
 affects the estimated technical efficiency at the country level. We find
 that this not only slightly affects the ranking of efficiency scores, but
 also increases average efficiency in a sample of 87-97 countries, both
 developed and developing. Our results are robust to the functional form of
 the production technology and the adjustment of labour to account for
 years of schooling. 
Journal: Applied Economics 
Pages: 2303-2311 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903166210 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166210 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2303-2311




Template-Type: ReDIF-Article 1.0
Author-Name: Gawon Yoon 
Author-X-Name-First: Gawon 
Author-X-Name-Last: Yoon 
Title: Structural breaks and smooth transition autoregressive processes: an application to the US stock value ratios 
Abstract:
  In this study, we show that a very simple structural break process can be
 easily confused with an Exponential Smooth Transition Autoregressive
 (ESTAR) model. Nonlinear estimates of an ESTAR model also appear to be
 quite significant and plausible when the model is applied to a structural
 break process. Testing for structural breaks is, therefore, imperative to
 avoid finding spurious nonlinear relations. Throughout this study, we
 illustrate our main findings with the value ratios from the Standard &
 Poor's 500 (S&P 500) stock price. 
Journal: Applied Economics 
Pages: 2313-2320 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903166228 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166228 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2313-2320




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Boussemart 
Author-X-Name-First: Jean-Philippe 
Author-X-Name-Last: Boussemart 
Author-Name: Walter Briec 
Author-X-Name-First: Walter 
Author-X-Name-Last: Briec 
Author-Name: Christophe Tavera 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Tavera 
Title: More evidence on technological catching-up in the manufacturing sector 
Abstract:
  Production frontiers for the manufacturing sector are estimated to
 determine a 'country specific' catching-up process of Total Factor
 Productivity (TFP). TFP gains were aimed at assessing the manufacturing
 industry's productive performances for 14 Organization for Economic
 Cooperation and Development (OECD) countries over the period 1970 to 2001.
 Our TFP measure does not assume technical or allocative efficiency which
 are inherent drawbacks of usual TFP indices. We show that catching-up
 processes can be very different between sub-periods and across countries.
 A significant catching-up process was in progress in the manufacturing
 sector between 1970 and 1986, then it overturned over the period 1987 to
 2001. During the first sub-period, the speed of technological catching-up
 of the Eurozone countries was definitely higher than those of the other
 European or OECD nations, whereas the divergence noted in the second
 sub-period had the same order of magnitude amongst the three groups. 
Journal: Applied Economics 
Pages: 2321-2330 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903166236 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166236 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2321-2330




Template-Type: ReDIF-Article 1.0
Author-Name: Hyeon-Seung Huh 
Author-X-Name-First: Hyeon-Seung 
Author-X-Name-Last: Huh 
Author-Name: Hyun-Hoon Lee 
Author-X-Name-First: Hyun-Hoon 
Author-X-Name-Last: Lee 
Title: A combined measure of UK core inflation estimates 
Abstract:
  This article estimates UK core inflation in a structural Vector
 Autoregression (VAR) framework. While building on the work of Quah and
 Vahey (1995), we extend their two-variable VAR model to allow for
 different dynamics depending on the nature of the shocks that potentially
 influence the process of core inflation. We also construct a combined
 measure of core inflation estimates on the basis of their reliabilities.
 Empirical evidence shows that the new measures demonstrate marked
 improvement in their eligibility to serve as core inflation estimators.
 Furthermore, the combined measure is shown to perform best. It appears
 that the conventional core measures such as the retail prices excluding
 mortgage interest payments (RPIX) and the Harmonized Index of Consumer
 Prices (HICP) inflation series are not successful in capturing the
 underlying trend of inflation, casting some doubt on their current use in
 the making of monetary policy decisions. 
Journal: Applied Economics 
Pages: 2331-2341 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903194196 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194196 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2331-2341




Template-Type: ReDIF-Article 1.0
Author-Name: Brian Coffey 
Author-X-Name-First: Brian 
Author-X-Name-Last: Coffey 
Author-Name: Ted Schroeder 
Author-X-Name-First: Ted 
Author-X-Name-Last: Schroeder 
Author-Name: Thomas Marsh 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Marsh 
Title: Disaggregated household meat demand with censored data 
Abstract:
  Previous research on meat demand has generally used highly aggregated
 data (across time, products and consumers). However, meat products across
 species are likely stronger substitutes than some products from the same
 species. Further, demand for specific meat products would be expected to
 respond differently to market information about food safety or other
 events. This study uses monthly consumer panel data collected between 1992
 and 2000 to estimate a disaggregated meat product demand system. The use
 of the expectations maximization algorithm is introduced to estimate a
 demand system that adjusts for the econometric problem of censored data
 resulting from purchased shares of some products by individuals often
 being equal to zero. Results indicate that certain individual meat
 products have noticeably different own-price elasticities than existing
 aggregate meat product estimates of their respective species. Some
 individual meat products have stronger substitutes across species than
 within species (e.g. beef steak and pork chops are substitutes, but beef
 roast and ground beef or not substitutes for steak). 
Journal: Applied Economics 
Pages: 2343-2363 
Issue: 18 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903194238 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194238 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2343-2363




Template-Type: ReDIF-Article 1.0
Author-Name: Emerson Fernandes Marcal 
Author-X-Name-First: Emerson Fernandes 
Author-X-Name-Last: Marcal 
Author-Name: Pedro Valls Pereira 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Valls Pereira 
Author-Name: Diogenes Manoel Leiva Martin 
Author-X-Name-First: Diogenes Manoel Leiva 
Author-X-Name-Last: Martin 
Author-Name: Wilson Toshiro Nakamura 
Author-X-Name-First: Wilson Toshiro 
Author-X-Name-Last: Nakamura 
Title: Evaluation of contagion or interdependence in the financial crises of Asia and Latin America, considering the macroeconomic fundamentals 
Abstract:
  This article investigates the existence of contagion between countries on
 the basis of an analysis of returns for stock indices over the period 1994
 to 2003. The econometrics methodology used is that of multivariate
 Generalized Autoregressive Conditional Heteroscedasticity (GARCH) family
 volatility models, particularly the Dynamic Conditional Correlation (DCC)
 models in the form proposed by Engle and Sheppard (2001). The returns were
 duly corrected for a series of country-specific fundamentals. The
 relevance of this procedure is highlighted in the literature by the work
 of Pesaran and Pick (2003). The results obtained in this article provide
 evidence favourable for the hypothesis of regional contagion in both Latin
 America and Asia. As a rule, contagion spread from the Asian crisis to
 Latin America, but not in the opposite direction. 
Journal: Applied Economics 
Pages: 2365-2379 
Issue: 19 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903194204 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194204 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2365-2379




Template-Type: ReDIF-Article 1.0
Author-Name: Bedri Kamil Onur Tas 
Author-X-Name-First: Bedri Kamil Onur 
Author-X-Name-Last: Tas 
Title: Private information of the Fed and predictability of stock returns 
Abstract:
  This article investigates whether the Federal Reserve's (Fed's) private
 Gross Domestic Product (GDP) growth forecasts, as reported in the
 Greenbook of the Fed, contain information about future real and excess
 stock returns. I implement long-horizon regressions to analyse the
 predictive power of the Fed's GDP growth forecasts. The regressions
 conclude that the Fed's GDP growth forecasts can be used to predict long-
 and short-term stock returns. The size of the coefficient of the Fed's
 orthogonal GDP growth forecast indicates that 1% increase in the Fed's
 forecast predicts 2-4% decrease in real and excess stock returns. The
 regressions considering the size effect suggest that the predictive power
 of the Fed's GDP growth forecasts increases as the size of the portfolio
 decreases. A comparison of the Fed's forecasts and the commercial
 forecasts shows that the Fed's GDP growth forecasts contain information
 that does not exist in the commercial forecasts. I investigate the sources
 of the Fed's superior private information and predictive power. Analysis
 suggests that the source of the predictive power of the Fed's GDP growth
 forecasts is the private information about future surprise monetary policy
 actions embedded in them. 
Journal: Applied Economics 
Pages: 2381-2398 
Issue: 19 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903194220 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194220 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2381-2398




Template-Type: ReDIF-Article 1.0
Author-Name: Beate Jochimsen 
Author-X-Name-First: Beate 
Author-X-Name-Last: Jochimsen 
Author-Name: Robert Nuscheler 
Author-X-Name-First: Robert 
Author-X-Name-Last: Nuscheler 
Title: The political economy of the German Lander deficits: weak governments meet strong finance ministers 
Abstract:
  We analyse the deficits of the German Lander (regional states) for the
 period 1960 to 2005 and test a number of hypotheses derived from the
 literature on the political economy of public deficits. We find evidence
 for the weak government hypothesis, that is, coalition governments issue
 significantly more debt than single party governments - a result that is
 typically explained by the common pool problem. As our data suggest, this
 result crucially hinges on the position or strength of the finance
 minister within coalition governments. We find that coalition governments
 with a strong finance minister are - in terms of borrowing - not
 significantly different from single party governments. In addition, we
 find (weak) evidence for an opportunistic political business cycle. As
 borrowing is significantly lower in pre-election years it appears that
 German voters favour fiscal discipline. There is no evidence for partisan
 behaviour, so party ideology seems to play a negligible role. 
Journal: Applied Economics 
Pages: 2399-2415 
Issue: 19 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903194246 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194246 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2399-2415




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Mossman 
Author-X-Name-First: Charles 
Author-X-Name-Last: Mossman 
Author-Name: Sergiy Rakhmayil 
Author-X-Name-First: Sergiy 
Author-X-Name-Last: Rakhmayil 
Title: Firm size, book-to-market ratio and the macroeconomic environment: theory and test 
Abstract:
  Many studies find that stock returns are related to firm size and the
 book-to-market ratio. This article provides a theoretical explanation for
 this phenomenon. We show that profit maximizing homogenous firms should
 converge to a stable long-run equilibrium in which firm's capital size and
 growth rates are shaped by the economic environment, and both influence
 stock returns. Our evidence shows firm convergence towards the optimum
 profitability size in a changing equilibrium. Firm characteristics reflect
 sensitivity to the macroeconomic environment. Our model and empirical
 tests demonstrate a linkage between this sensitivity and the relationship
 of returns to market value and book-to-market. 
Journal: Applied Economics 
Pages: 2417-2431 
Issue: 19 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903196639 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903196639 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2417-2431




Template-Type: ReDIF-Article 1.0
Author-Name: Rati Ram 
Author-X-Name-First: Rati 
Author-X-Name-Last: Ram 
Title: Growth elasticity of poverty: direct estimates from recent data 
Abstract:
  Using recent poverty data for developing countries, elasticity of $2
 poverty headcount with respect to the growth of Gross Domestic Product
 (GDP) per capita is directly calculated for the 1990s and the 2000s. The
 global estimate is around -0.84, which is much smaller in absolute
 magnitude than what some highly influential studies have reported or used.
 For the poverty-dense South Asia region, the elasticity is of the order of
 -0.22, which is a dramatic contrast from the previous estimates. For
 India, where the number of poor people is by far the largest of any
 country, and where the poverty rate is higher than even in Sub-Saharan
 Africa (SSA), the elasticity is of the order of -0.13, which is an even
 bigger contrast from earlier studies. Policymakers and researchers are
 urged to keep these estimates in mind while judging the likely effect of
 income growth on poverty, and to discount poverty-reduction claims based
 on higher elasticity estimates that have been reported or used in many
 influential studies. In particular, the elasticities shown in this study
 for South Asia and India seem to be a grim reminder of how unrealistic the
 existing estimates might be. 
Journal: Applied Economics 
Pages: 2433-2440 
Issue: 19 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903196647 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903196647 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2433-2440




Template-Type: ReDIF-Article 1.0
Author-Name: Russell James 
Author-X-Name-First: Russell 
Author-X-Name-Last: James 
Author-Name: Keely Jones 
Author-X-Name-First: Keely 
Author-X-Name-Last: Jones 
Title: Tithing and religious charitable giving in America 
Abstract:
  The concept of religious tithing - giving 10% or more of one's income to
 religious organizations - permeates ancient and contemporary religious
 literature. Yet, the degree to which households apply this construct in
 their charitable giving practices remains unclear. This study examines the
 practice of tithing using data from a national expenditures survey
 including 56 663 households. Despite the pervasiveness of the tithing
 concept, religious donors did not appear to be targeting a specific 10%
 giving level. This may have resulted from varied definitions of income for
 tithing purposes or the presence of small charitable gifts made without
 reference to income. While the likelihood of religious giving increased
 with income, the likelihood of tithing fell dramatically. As a group,
 tithers had less income, but were wealthier, more educated, older and gave
 more to nonreligious charity than did other households. Religious tithers
 who also gave to nonreligious charities were wealthier, older and more
 highly educated than tithers who gave only to religious organizations. 
Journal: Applied Economics 
Pages: 2441-2450 
Issue: 19 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903213384 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903213384 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2441-2450




Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Jordaan 
Author-X-Name-First: Jacob 
Author-X-Name-Last: Jordaan 
Title: Cross-sectional estimation of FDI spillovers when FDI is endogenous: OLS and IV estimates for Mexican manufacturing industries 
Abstract:
  Cross-sectional estimates of Foreign Direct Investment (FDI) spillovers
 are biased when the variable capturing the cross-industry variation of
 foreign participation is endogenous to the estimated regression model. In
 this article I introduce an original instrument for this problematic FDI
 variable, capturing the general FDI intensity of manufacturing industries.
 I use this instrument to estimate FDI externalities in a cross-section of
 Mexican manufacturing industries. The main findings show that, in contrast
 to the common criticism that Ordinary Least Squares (OLS) estimation
 produces an upward bias in the estimated FDI externality effect, for the
 sample of Mexican manufacturing industries OLS estimation causes a
 downward bias. Controlling for the tendency among foreign manufacturing
 firms to gravitate towards low productivity industries, the instrumental
 variable estimations provide robust evidence of significantly larger
 positive FDI spillover effects. 
Journal: Applied Economics 
Pages: 2451-2463 
Issue: 19 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903262977 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903262977 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2451-2463




Template-Type: ReDIF-Article 1.0
Author-Name: Rehim Kilic 
Author-X-Name-First: Rehim 
Author-X-Name-Last: Kilic 
Title: A conditional variance tale from an emerging economy's freely floating exchange rate 
Abstract:
  This article studies daily return and volatility dynamics in the exchange
 rate of an emerging market economy Turkey over the recent floating period.
 We use Generalized Autoregressive Conditional Heteroscedastic (GARCH) and
 Fractionally Integrated GARCH (FIGARCH) models with various error
 distributions. Findings show that a parsimonious FIGARCH model with an
 asymmetric error distribution characterizes the daily Turkish Lira (TL)
 returns against US dollar and euro considerably well. We find
 statistically significant asymmetry and peakedness in conditional returns
 and time-varying volatility with long-range dependence in conditional
 volatility. Long memory finding is robust to different specifications for
 the conditional returns as well as possible shifts in the return and
 volatility dynamics over sub-periods. Results in the article show that
 despite the decline in volatility over the course of the recent float, TL
 returns are still wild compared to developed economies exchange rates
 during the same period. Findings have implications for exchange rate
 regime choice, policy and risk management in Turkey and other emerging
 market economies. 
Journal: Applied Economics 
Pages: 2465-2480 
Issue: 19 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903266812 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903266812 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2465-2480




Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Wu Ho 
Author-X-Name-First: Tsung-Wu 
Author-X-Name-Last: Ho 
Title: Intra-national risk-sharing and government sizes: evidence from nonlinear regression 
Abstract:
  This article investigates the effects of government sizes on the cyclical
 elasticity coefficient. Theory of intra-national risk-sharing evaluates
 the effects of the cyclical sensitivity of taxes to income fluctuation
 across US states. Because government size is a proxy for automatic
 stabilizer, which captures the relevant differences of fiscal variables at
 the state level; hence, the cyclical sensitivity may differ across various
 magnitudes of local government. We employ two nonlinear econometric
 methods: threshold regression of panel data (Hansen, 1999) and
 semi-parametric smooth-coefficient regression of cross-sectional data
 (Koop and Tobias, 2006). Evidence from a panel of 50 US states supports a
 positive relationship between government size and intra-national
 risk-sharing. 
Journal: Applied Economics 
Pages: 2481-2492 
Issue: 19 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299680 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299680 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2481-2492




Template-Type: ReDIF-Article 1.0
Author-Name: Trevon Logan 
Author-X-Name-First: Trevon 
Author-X-Name-Last: Logan 
Title: Econometric tests of American college football's conventional wisdom 
Abstract:
  College football fans, coaches and observers have adopted a set of
 beliefs about how college football poll voters behave. I document three
 pieces of conventional wisdom in college football regarding the timing of
 wins and losses, the value of playing strong opponents and the value of
 winning by wide margins. Using a unique data set with 25 years of
 Associated Press (AP) poll results, I use a hedonic regression to test
 college football's conventional wisdom. In particular, I test (1) whether
 it is better to lose early or late in the season, (2) whether teams
 benefit from playing stronger opponents and (3) whether teams are rewarded
 for winning by large margins. Contrary to conventional wisdom, I find that
 (1) it is better to lose later in the season than earlier, (2) AP voters
 do not pay attention to the strength of a defeated opponent and (3) the
 benefit of winning by a large margin is negligible. I conclude by noting
 how these results inform debates about a potential playoff in college
 football. 
Journal: Applied Economics 
Pages: 2493-2518 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903286331 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903286331 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2493-2518




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Eugenio-Martin 
Author-X-Name-First: Juan 
Author-X-Name-Last: Eugenio-Martin 
Author-Name: Juan Campos-Soria 
Author-X-Name-First: Juan 
Author-X-Name-Last: Campos-Soria 
Title: Income and the substitution pattern between domestic and international tourism demand 
Abstract:
  This article analyses the role of income in the decision of participating
 in the tourism demand within 1 year. The tourists who are participating
 can travel to domestic destinations only, abroad destinations only or to
 both of them. Such a substitution pattern is modelled using a bivariate
 probit model. The analysis is carried out to the regional level using a
 survey conducted in 15 European (EU-15) countries. In addition to the
 traditional socioeconomic variables, the analysis adds new variables to
 the outbound tourism demand modelling, such as the attributes of the place
 of residence. The results show that tourism demand is income elastic.
 However, there are marked differences in the income elasticities of the
 probabilities of travelling domestically or abroad. Above certain income
 threshold, the substitution pattern between destinations takes part. The
 probability of travelling domestically only remains constant, whereas the
 probability of travelling abroad keeps growing. Additionally, the article
 proves that income elasticities vary significantly and nonlinearly with
 income. 
Journal: Applied Economics 
Pages: 2519-2531 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299698 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299698 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2519-2531




Template-Type: ReDIF-Article 1.0
Author-Name: Bj&#xf8;rn-Roger Wilhelmsen 
Author-X-Name-First: Bj&#xf8;rn-Roger 
Author-X-Name-Last: Wilhelmsen 
Author-Name: Andrea Zaghini 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Zaghini 
Title: Monetary policy predictability in the euro area: an international comparison 
Abstract:
  We evaluate the ability of market participants to anticipate monetary
 policy decisions in 14 countries. First, by looking at both the magnitude
 and volatility of changes in the money market rates we show that the days
 of policy meetings are special days for financial markets. Second, we find
 that the predictability of Federal Reserve (FED), Bank of England and
 European Central Bank (ECB) is fully comparable. Finally, an econometric
 analysis of the ability of market participants to incorporate in the
 current short-term interest rates the expected policy changes shows that
 in the euro area (and in other countries) policy decisions are anticipated
 well in advance. 
Journal: Applied Economics 
Pages: 2533-2544 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299714 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299714 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2533-2544




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Jen Lin 
Author-X-Name-First: Ming-Jen 
Author-X-Name-Last: Lin 
Author-Name: Chia-Chi Chang 
Author-X-Name-First: Chia-Chi 
Author-X-Name-Last: Chang 
Title: Testing Coase theorem: the case of free agency in NBA 
Abstract:
  This study seeks to test the applicability of the Coase theorem to the
 allocation of players within. According to the Coase theorem, a player's
 final allocation would be the same no matter who has ownership of his
 playing rights if there are no transaction costs. What ownership affects
 is just the allocation of wealth. Using data from the National Basketball
 Association (NBA), this article argues that player mobility is likely to
 be affected by player ownership due to transaction cost imposed by the
 institution. It is also concluded that performance indicators used for
 value estimation vary by position and that this also affects player
 transfer. 
Journal: Applied Economics 
Pages: 2545-2558 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299722 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299722 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2545-2558




Template-Type: ReDIF-Article 1.0
Author-Name: Maik Schmeling 
Author-X-Name-First: Maik 
Author-X-Name-Last: Schmeling 
Title: Consumption, money and excess returns 
Abstract:
  We augment the standard Consumption Capital Asset Pricing Model (CCAPM)
 by the growth in money holdings and empirically investigate whether money
 is helpful for pricing a cross-section of US excess returns. We find that
 the growth in M2 significantly improves the fit of the CCAPM with R2s well
 above 80% in a cross-section with the three Fama-French factors, the
 momentum portfolio, a contrarian portfolio and two bond portfolios as test
 assets. 
Journal: Applied Economics 
Pages: 2559-2563 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299730 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2559-2563




Template-Type: ReDIF-Article 1.0
Author-Name: Werner Holzl 
Author-X-Name-First: Werner 
Author-X-Name-Last: Holzl 
Author-Name: Andreas Reinstaller 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Reinstaller 
Title: On the heterogeneity of sectoral growth and structural dynamics: evidence from Austrian manufacturing industries 
Abstract:
  This article studies the factors driving structural dynamics across
 Austrian manufacturing industries. Using a Structural Vector
 Autoregressive Model (SVAR) framework we identify sectoral labour
 productivity and demand shocks that are orthogonal to aggregate shocks. We
 analyse the sectoral impulse-response patterns and find that the effect of
 industry labour productivity shocks on industry output growth is quite
 heterogeneous. We devise a taxonomy that allows us to classify industries
 according to the effect productivity and demand shocks have on output
 growth. We also show that productivity shocks are quite heterogeneous not
 just across industries but also over time, whereas shocks to sectoral
 demand growth are more systematic. We test the taxonomy in a panel
 regression and are able to confirm our sector-specific findings. Industry
 demand shocks and aggregate productivity and demand shocks lead always to
 an increase in industry output and industry employment. 
Journal: Applied Economics 
Pages: 2565-2582 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299748 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299748 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2565-2582




Template-Type: ReDIF-Article 1.0
Author-Name: Lusine Lusinyan 
Author-X-Name-First: Lusine 
Author-X-Name-Last: Lusinyan 
Author-Name: John Thornton 
Author-X-Name-First: John 
Author-X-Name-Last: Thornton 
Title: Unit roots, structural breaks and cointegration in the UK public finances, 1750-2004 
Abstract:
  In this article, we report results from several traditional and more
 recently developed unit root and cointegration tests, allowing for
 structural breaks, which indicate that UK government revenue and spending
 during 1750-2004 were I(1) series and cointegrated, and that the UK public
 finances have been on a consistently sustainable path over the long run. 
Journal: Applied Economics 
Pages: 2583-2592 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299755 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299755 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2583-2592




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Chuan Yeh 
Author-X-Name-First: Chih-Chuan 
Author-X-Name-Last: Yeh 
Author-Name: Kuan-Min Wang 
Author-X-Name-First: Kuan-Min 
Author-X-Name-Last: Wang 
Author-Name: Yu-Bo Suen 
Author-X-Name-First: Yu-Bo 
Author-X-Name-Last: Suen 
Title: A quantile framework for analysing the links between inflation uncertainty and inflation dynamics across countries 
Abstract:
  In contrast to the conventional conditional mean approaches, this study
 uses quantile regression techniques to present some new statistical
 evidence on the links between inflation uncertainty and the level of
 inflation with cross-sectional data from 90 countries during the period
 1961 to 2006. The results suggest that positive inflation shocks have
 stronger impact on inflation uncertainty which varies across the
 quantiles. Furthermore, popular time-series models are evaluated for their
 ability to reproduce measures of uncertainty and indicate similar results
 regarding the relationships between inflation and inflation uncertainty. 
Journal: Applied Economics 
Pages: 2593-2602 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299763 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299763 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2593-2602




Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Quatraro 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Quatraro 
Title: ICT capital and services complementarities: the Italian evidence 
Abstract:
  This article investigates whether Information and Communication
 Technologies (ICTs) hardware and services play a complementary role in
 boosting economic growth. The main argument is that investments in ICT
 fixed capital are a necessary but not sufficient condition leading to
 productivity gains, above all in late adopter countries. Their effective
 implementation indeed requires on the one hand a changing economic
 structure characterized by a growing weight of service sectors and on the
 other hand complementary investments in ICT services, directed to ease the
 integration of the new technologies within firms' boundaries. The analysis
 is conducted on a late industrialized country like Italy, and shows that
 in lagging countries the weak impact of ICT adoption is the result of
 three converging forces: relatively high share of manufacturing sectors,
 low-adoption levels of ICTs in traditional manufacturing sectors,
 inadequate investments in ICT services. 
Journal: Applied Economics 
Pages: 2603-2613 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299805 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2603-2613




Template-Type: ReDIF-Article 1.0
Author-Name: Tiziana Laureti 
Author-X-Name-First: Tiziana 
Author-X-Name-Last: Laureti 
Author-Name: Alessandro Viviani 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Viviani 
Title: Competitiveness and productivity: a case study of Italian firms 
Abstract:
  The purpose of this article is to obtain a synthetic measure of the
 multi-dimensional concept of firm competitiveness and to analyse the role
 of different factors, such as productivity, firm size and cluster of
 industries, for determining firm competitiveness in Italy. An adequate
 firm-specific data set is constructed from balance sheets by using
 imputation methods for handling missing values. The synthetic measure of
 competitiveness is obtained using a Data Envelopment Analysis (DEA)
 approach, then a Tobit model is considered to measure the influence of
 different factors on the measured competitiveness. The results obtained
 are very interesting and coherent with the characteristics of the Italian
 firms. 
Journal: Applied Economics 
Pages: 2615-2625 
Issue: 20 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903357439 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357439 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2615-2625




Template-Type: ReDIF-Article 1.0
Author-Name: Kuang-Liang Chang 
Author-X-Name-First: Kuang-Liang 
Author-X-Name-Last: Chang 
Title: The optimal value-at-risk hedging strategy under bivariate regime switching ARCH framework 
Abstract:
  Unlike the majority of other hedging literatures in which variance is
 taken as the risk indicator, this article uses the Value-at-Risk (VaR) as
 the risk management tool of the hedged portfolio. This article adopts a
 bivariate Markov regime Switching Autoregressive Conditional
 Heteroscedastic (SWARCH) model to formulate the optimal VaR hedging
 strategy and then compares it with the other dynamic futures hedging
 strategies mentioned in the literature in hedging performance. Using
 Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) futures
 data, the in-sample and out-of-sample results shows that when VaR is used
 as the criterion to measure the futures hedging effectiveness, the
 performance of the dynamic hedging strategy is superior to that of the
 static hedging strategy, and the performance of the optimal VaR hedging
 strategy is better than that of the minimum variance and mean-variance
 hedging strategies. Besides, from the standpoint that the volatility of
 hedge ratio and hedged portfolio variance decline, no matter what kind of
 hedging strategy is adopted, the regime switching model is better in
 in-sample and out-of-sample hedging effectiveness than the Generalized
 Autoregressive Conditional Heteroscedastic (GARCH) model. 
Journal: Applied Economics 
Pages: 2627-2640 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299771 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299771 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2627-2640




Template-Type: ReDIF-Article 1.0
Author-Name: Hua Wang 
Author-X-Name-First: Hua 
Author-X-Name-Last: Wang 
Author-Name: Jie He 
Author-X-Name-First: Jie 
Author-X-Name-Last: He 
Title: Estimating individual valuation distributions with multiple bounded discrete choice data 
Abstract:
  This article presents a new modelling strategy that estimates individual
 valuation distributions with Multiple Bounded Discrete Choice (MBDC) data.
 An individual's valuation of a commodity or service is assumed to have a
 distribution rather than being a single number. Likelihood responses to
 the MBDC questions are numerically coded and treated with a new panel
 technique. The proposed estimation strategy is empirically compared with
 previous data analysis methods. 
Journal: Applied Economics 
Pages: 2641-2656 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299789 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2641-2656




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Luc Demeulemeester 
Author-X-Name-First: Jean-Luc 
Author-X-Name-Last: Demeulemeester 
Author-Name: Claude Diebolt 
Author-X-Name-First: Claude 
Author-X-Name-Last: Diebolt 
Author-Name: Magali Jaoul-Grammare 
Author-X-Name-First: Magali 
Author-X-Name-Last: Jaoul-Grammare 
Title: The growth of aggregate wage earnings in Germany, 1810-1989 
Abstract:
  Aggregate wage earnings are one of the key variables of the German
 economy. Paradoxically, it is also a little known variable, especially in
 the long term. Historians have never devoted a synthesis to the subject
 and, among all the economists who have centred their work on the study of
 economic growth, Hoffmann (1965) is the only one to have addressed
 aggregate earnings over a long period. This article follows up his
 founding work and has two objectives. The first is to measure the movement
 of wages and wage earners over a long period and use this to make an
 original estimate of aggregate employment earnings in Germany from 1810 to
 1989. Reconstituted sets of statistics are also used to put forward new
 hypotheses concerning the way is which wages, wage earners and aggregate
 employment earnings in Germany are linked to the socioeconomic development
 of the country in the 19th and 20th centuries. It is also sought to detect
 the temporary and permanent shocks that have affected the German economy
 since the beginning of the 19th century. Our reflection is in two parts.
 The first defines the concept of wages, sets out the spatial scope and
 describes the methodological constraints. The second describes our
 cliometric results. 
Journal: Applied Economics 
Pages: 2657-2669 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299813 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2657-2669




Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Ganoulis 
Author-X-Name-First: Ioannis 
Author-X-Name-Last: Ganoulis 
Author-Name: Massimo Giuliodori 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Giuliodori 
Title: Financial liberalization and house price dynamics in Europe 
Abstract:
  This article investigates the determinants of house prices in a sample of
 European countries over the period 1970 to 2004. Focusing on the role of
 financial liberalization, we find that it has mainly affected the
 short-term dynamics of residential prices. In particular, the impulse
 effects on house prices of income and mortgage debt have become smaller.
 On the other hand, the effects of interest rates, past house prices and,
 to a lesser degree, stock market have strengthened. In other words, there
 seems to have been a certain 'de-linking' of short-term house price
 dynamics from income, whereas the housing market may have become more
 similar to a financial asset market, with interest rates and expectations
 of capital gains playing a more prominent role. 
Journal: Applied Economics 
Pages: 2671-2688 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903315494 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903315494 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2671-2688




Template-Type: ReDIF-Article 1.0
Author-Name: Helmut Stix 
Author-X-Name-First: Helmut 
Author-X-Name-Last: Stix 
Title: Euroization: what factors drive its persistence? Household data evidence for Croatia, Slovenia and Slovakia 
Abstract:
  The question asked in this article is why people continue to use foreign
 currencies even after their economies have stabilized. Survey data for
 Croatia, Slovenia and Slovakia are employed to provide an answer. The
 results confirm the role of network effects and of remittances.
 Furthermore, the extent of currency substitution is found to be positively
 associated with the level of income and education. An important aspect of
 euroization seems to be age (older people are more likely to hold foreign
 currencies). In contrast, neither expectations about inflation rates, nor
 about exchange rates, do seem to affect the degree of euroization in a
 systematic and predictable way. Trust in the banking system is found to
 affect the choice between foreign currency cash and foreign currency
 deposits. Overall, the results support the view that the persistence in
 the use of foreign currencies is driven to a large extent by factors that
 are related to the past. 
Journal: Applied Economics 
Pages: 2689-2704 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903357413 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357413 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2689-2704




Template-Type: ReDIF-Article 1.0
Author-Name: Michael French 
Author-X-Name-First: Michael 
Author-X-Name-Last: French 
Author-Name: Johanna Catherine Maclean 
Author-X-Name-First: Johanna Catherine 
Author-X-Name-Last: Maclean 
Author-Name: Jody Sindelar 
Author-X-Name-First: Jody 
Author-X-Name-Last: Sindelar 
Author-Name: Hai Fang 
Author-X-Name-First: Hai 
Author-X-Name-Last: Fang 
Title: The morning after: alcohol misuse and employment problems 
Abstract:
  Using a rich, recent and nationally representative longitudinal survey
 specifically designed to examine alcohol use and associated problems, we
 investigate the effects of alcohol misuse on a series of understudied and
 perhaps less common employment problems. Such problems include being fired
 or laid off from a job, sustained unemployment and conflicts with a
 supervisor and/or co-worker. After controlling for time-invariant omitted
 variables via fixed effects estimation, we find evidence that three
 measures of alcohol misuse are significantly related to employment
 problems. The results offer new information on the potential adverse
 labour market effects of alcohol misuse and shed light on potential
 mechanisms through which alcohol misuse may impact intensive labour supply
 and/or wages. 
Journal: Applied Economics 
Pages: 2705-2720 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903357421 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357421 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2705-2720




Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Di Bartolomeo 
Author-X-Name-First: Giovanni 
Author-X-Name-Last: Di Bartolomeo 
Author-Name: Lorenza Rossi 
Author-X-Name-First: Lorenza 
Author-X-Name-Last: Rossi 
Author-Name: Massimiliano Tancioni 
Author-X-Name-First: Massimiliano 
Author-X-Name-Last: Tancioni 
Title: Monetary policy, rule-of-thumb consumers and external habits: a G7 comparison 
Abstract:
  This article extends the standard New Keynesian Dynamic Stochastic
 General Equilibrium (DSGE) model to agents who cannot smooth consumption
 (i.e. spenders) and are affected by external consumption habits. Although
 these assumptions are not new, their joint consideration strongly affects
 some theoretical and empirical results addressed by the recent literature.
 By deriving closed-form solutions, we identify different demand regimes
 and show that they are characterized by specific features regarding
 dynamic stability and monetary policy effectiveness. We also evaluate our
 model by stochastic simulations obtained from the Bayesian parameters
 estimates for the Group of Seven (G7) economies. From posterior impulse
 responses, we address the empirical relevance of the different regimes and
 provide comparative evidence on the heterogeneity of monetary policy
 effects among countries. 
Journal: Applied Economics 
Pages: 2721-2738 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903357447 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357447 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2721-2738




Template-Type: ReDIF-Article 1.0
Author-Name: Sumon Kumar Bhaumik 
Author-X-Name-First: Sumon Kumar 
Author-X-Name-Last: Bhaumik 
Author-Name: Jeffrey Nugent 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Nugent 
Title: Real options and demographic decisions: empirical evidence from East and West Germany 
Abstract:
  Iyer and Velu (2006) have convincingly argued that contemporary analyses
 of fertility behaviour fail to explain why a woman (or a couple) will
 choose to postpone childbirth, and in particular to consider the role of
 uncertainty in this regard. They have addressed this lacuna in the
 literature by using a real options approach to model fertility decisions
 by relating uncertainty experienced by individuals to the likelihood of
 childbirth. However, they did not present empirical evidence. Since the
 theory implies the existence of two offsetting effects of uncertainty on
 fertility decisions, a positive insurance effect and a negative option
 value effect, it is not easy to reject the theory on the basis of
 empirical analysis, when one of these effects offsets the other. We
 construct such a test for East (and also West) Germany during that
 country's reunification, which takes advantage of the fact that because of
 the country's strong welfare system, the insurance effect should be
 dominated by the option value effect, thereby suggesting that the net
 relationship should be negative. The results provide rather strong support
 for the real options link, especially for Eastern Germany. 
Journal: Applied Economics 
Pages: 2739-2749 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903373287 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903373287 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2739-2749




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Knabe 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Knabe 
Author-Name: Steffen Ratzel 
Author-X-Name-First: Steffen 
Author-X-Name-Last: Ratzel 
Title: Quantifying the psychological costs of unemployment: the role of permanent income 
Abstract:
  Unemployment causes significant losses in the quality of life. In
 addition to reducing individual income, it also creates nonpecuniary and
 psychological costs. We quantify these nonpecuniary losses by using the
 life satisfaction approach. In contrast to previous studies, we apply
 Friedman's (1957) permanent income hypothesis by distinguishing between
 temporary and permanent effects of income changes. This allows us to
 account for intertemporal spillovers of income compensations. Our results
 show that the nonpecuniary costs of unemployment are only half as large
 compared to a standard estimation without this distinction. Nevertheless,
 the nonpecuniary costs of unemployment calculated with this modified
 quantification method are still about two times higher than its pecuniary
 costs. This confirms the high value of work for life satisfaction. 
Journal: Applied Economics 
Pages: 2751-2763 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903373295 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903373295 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2751-2763




Template-Type: ReDIF-Article 1.0
Author-Name: D. Contreras 
Author-X-Name-First: D. 
Author-X-Name-Last: Contreras 
Author-Name: L. de Mello 
Author-X-Name-First: L. 
Author-X-Name-Last: de Mello 
Author-Name: E. Puentes 
Author-X-Name-First: E. 
Author-X-Name-Last: Puentes 
Title: The determinants of labour force participation and employment in Chile 
Abstract:
  Chile's labour force participation is low in comparison with Organization
 for Economic Co-operation and Development (OECD) and Latin American
 countries on average, especially among females and youths. This article
 estimates the main determinants of labour supply and employment for
 prime-age individuals and youths using data from the National Household
 Survey (CASEN) for 1990, 1996 and 2003. Educational attainment is found to
 be a powerful predictor of labour supply and employability for both males
 and females. The number of young children in the household is a strong
 deterrent to female participation, both for prime-age and young women.
 Changes in labour supply and employment during 1990 and 2003 are
 decomposed using the probit estimations. The results suggest that
 structural changes in the economy were the main determinants of changes in
 participation among prime-age individuals, but the converse is true for
 changes in employment, which depended predominantly on shifts in
 individual characteristics. 
Journal: Applied Economics 
Pages: 2765-2776 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903373303 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903373303 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2765-2776




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schneider 
Author-X-Name-First: Martin 
Author-X-Name-Last: Schneider 
Author-Name: Gerhard Fenz 
Author-X-Name-First: Gerhard 
Author-X-Name-Last: Fenz 
Title: Transmission of business cycle shocks between the US and the euro area 
Abstract:
  We analyse the transmission of structural shocks between the US and the
 euro area within a two-country Vector Autoregressive (VAR) framework. For
 that purpose, we simultaneously identify cost-push, demand and monetary
 policy shocks for both countries using sign restrictions. Our results show
 that domestic shocks explain the largest share of the forecast error
 variances for Gross Domestic Product (GDP), consumer prices and interest
 rate in both countries in the short run, whilst spillovers from the other
 country and global factors gain importance in the medium run. The strength
 of the shock transmission between the two countries is quite symmetric.
 Our approach to the identification of structural shocks allows us to
 construct confidence bands that account both for estimation and
 identification uncertainty. We find impulse responses to domestic shocks
 to be significant while spillovers across countries are insignificant. 
Journal: Applied Economics 
Pages: 2777-2793 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903373311 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903373311 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2777-2793




Template-Type: ReDIF-Article 1.0
Author-Name: Hsin-Hung Chen 
Author-X-Name-First: Hsin-Hung 
Author-X-Name-Last: Chen 
Author-Name: Hsien-Tang Tsai 
Author-X-Name-First: Hsien-Tang 
Author-X-Name-Last: Tsai 
Author-Name: Dennis Lin 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Lin 
Title: Optimal mean-variance portfolio selection using Cauchy-Schwarz maximization 
Abstract:
  Fund managers highly prioritize selecting portfolios with a high Sharpe
 ratio. Traditionally, this task can be achieved by revising the objective
 function of the Markowitz mean-variance portfolio model and then resolving
 quadratic programming problems to obtain the maximum Sharpe ratio
 portfolio. This study presents a closed-form solution for the optimal
 Sharpe ratio portfolio by applying Cauchy-Schwarz maximization and the
 concept of Kuhn-Tucker conditions. An empirical example is used to
 demonstrate the efficiency and effectiveness of the proposed algorithms.
 Moreover, the proposed algorithms can also be used to obtain the optimal
 portfolio containing large numbers of securities, which is not possible,
 or at least is complicated via traditional quadratic programming
 approaches. 
Journal: Applied Economics 
Pages: 2795-2801 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903388285 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903388285 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2795-2801




Template-Type: ReDIF-Article 1.0
Author-Name: Morteza Haghiri 
Author-X-Name-First: Morteza 
Author-X-Name-Last: Haghiri 
Author-Name: Alireza Simchi 
Author-X-Name-First: Alireza 
Author-X-Name-Last: Simchi 
Title: A nonparametric extension of generalized quadratic Box-Cox models in measuring technical efficiency 
Abstract:
  This article uses a nonparametric extension of estimating Generalized
 Quadratic Box-Cox (GQBC) models using the Additivity and Variance
 Stabilization (AVAS) algorithm. The new method accounts for random noise
 in the data and relaxes the sensitivity of technical efficiency scores to
 the choice of functional form. It also provides more flexible choices for
 estimating the parameter of the dependent variable. The model is specified
 to measure technical efficiency scores of New York dairy producers in the
 period 1990 to 2000. Results show that the sample producers did not use
 resources efficiently, as the estimated mean technical efficiency score
 was found to be 0.663. 
Journal: Applied Economics 
Pages: 2803-2810 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903389804 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903389804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2803-2810




Template-Type: ReDIF-Article 1.0
Author-Name: Meng-Fen Hsieh 
Author-X-Name-First: Meng-Fen 
Author-X-Name-Last: Hsieh 
Author-Name: Chung-Hua Shen 
Author-X-Name-First: Chung-Hua 
Author-X-Name-Last: Shen 
Title: Business cycles and bank regulations - what happens to bank provisioning? A more comprehensive look at 49 countries 
Abstract:
  Numerous researchers provide evidence that many banks intend to increase
 their Loan Loss Provisioning (LLP) when the economy is in a downward
 trend. However, the answer whether banks provide sufficient provisions
 when the economy is in an upturn trend remains unsolved. Furthermore,
 provisioning must be influenced not only by business cycles and bank
 earnings, but also by the regulatory system. Nevertheless, empirical
 research on this issue has been scarce. Thus, this study intends to answer
 two questions shown above. The evidence shows that with steady growth in
 both the economy and bank earnings, the bank management will tend to
 increase LLP, whereas with a buoyant economy but negative growth in bank
 earnings, the management will exhibit an inclination to reduce LLP. As
 regards the influence of bank regulation on provisions, the evidence shows
 that, under certain circumstances, banks make more provision based on
 regulatory considerations. This explains why bank regulations regarding
 LLP across countries do have an impact on banks' provisioning behaviour. 
Journal: Applied Economics 
Pages: 2811-2822 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903389812 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903389812 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2811-2822




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Cebula 
Author-X-Name-First: Richard 
Author-X-Name-Last: Cebula 
Author-Name: Christopher Coombs 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Coombs 
Title: The influence of the number of statewide legislative referendums on voter participation in the US 
Abstract:
  This empirical study seeks to broaden the interpretation of the 'rational
 voter model' so as to include the potential effects of the number of
 statewide legislative referendums. This study tests the hypothesis that
 greater numbers of such referendums increase voter turnout because they
 elevate the Expected Gross Benefits (EGB) of voting by 'empowering voters'
 while not significantly increasing the Expected Gross Costs (EGC) of
 voting. Using state-level data for the 2006 general election in the US, as
 well as the 2004 US Presidential election, and after allowing for a
 variety of economic and demographic factors, this study finds compelling
 evidence that the number of statewide legislative referendums does
 significantly increase voter turnout. 
Journal: Applied Economics 
Pages: 2823-2831 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903389820 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903389820 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2823-2831




Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Farrell 
Author-X-Name-First: Lisa 
Author-X-Name-Last: Farrell 
Author-Name: Tim Fry 
Author-X-Name-First: Tim 
Author-X-Name-Last: Fry 
Author-Name: Mark Harris 
Author-X-Name-First: Mark 
Author-X-Name-Last: Harris 
Title: 'A pack a day for 20 years': smoking and cigarette pack sizes 
Abstract:
  This study focuses on the determinants of cigarette consumption. In
 particular, the impact of cigarette pack sizes on the typical daily
 consumption of smokers is investigated. Results are presented from a new
 multi-modal count data model which allows for 'pack-effects' in daily
 consumption levels. Our results suggest that smokers regulate their
 consumption in accordance with the variety of pack sizes that are
 available to them. 
Journal: Applied Economics 
Pages: 2833-2842 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903389838 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903389838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2833-2842




Template-Type: ReDIF-Article 1.0
Author-Name: M. Adetunji Babatunde 
Author-X-Name-First: M. Adetunji 
Author-X-Name-Last: Babatunde 
Title: A bound testing analysis of Wagner's law in Nigeria: 1970-2006 
Abstract:
  This study tests Wagner's law (the tendency for government activities to
 expand along with economic expansion) for Nigeria using annual time series
 data between 1970 and 2006. It adopts the bounds test approach proposed by
 Pesaran et&#xa0;al. (2001) based on unrestricted error correction model
 (UECM) and Toda and Yamamoto's (1995) Granger noncausality tests.
 Empirical results from the bounds test indicate that there exists no
 long-run relationship between government expenditure and output in
 Nigeria. In addition, Toda and Yamamoto's (1995) causality test results
 show that Wagner's law does not hold for more than the period being
 tested. Rather we found a weak empirical support in the proposition by
 Keynes that public expenditure is an exogenous factor and a policy
 instrument for increasing national income. 
Journal: Applied Economics 
Pages: 2843-2850 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903425012 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903425012 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2843-2850




Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Ho 
Author-X-Name-First: Catherine 
Author-X-Name-Last: Ho 
Author-Name: M. Ariff 
Author-X-Name-First: M. 
Author-X-Name-Last: Ariff 
Title: Sticky prices and time to equilibrium: evidence from Asia-Pacific trade-related economies 
Abstract:
  The theoretical relation between exchange rate and prices has been a
 difficult proposition to find supporting evidence despite many studies of
 developed economies using standard research methods. The exchange rate to
 price relation appears to hold in the long run only, a result consistent
 with sticky price hypothesis. There is a need to add to this sticky price
 literature by examining more yet-studied economies to this area of
 research. This article presents results to support long-run equilibrium in
 the Asia-Pacific economies as being 5 years. The methodology is used to
 group countries with high-trade intensity within a region and value-weight
 the resulting variables to test the theory in a regional context. Our
 positive finding on the long-run equilibrium, we believe, helps in some
 ways to enrich the literature on the exchange rate behaviour of an
 important region for world trade. 
Journal: Applied Economics 
Pages: 2851-2861 
Issue: 21 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/09603100903425189 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100903425189 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2851-2861




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor 
Author-X-Name-First: Mark 
Author-X-Name-Last: Taylor 
Title: The applied economics of industry: introduction and overview 
Abstract:
  We provide an introduction and overview to the 10 applied economics
 studies making up this special-themed issue on The Applied Economics of
 Industry. The studies cover a wide range of topics, and employ a variety
 of applied techniques. 
Journal: Applied Economics 
Pages: 2863-2864 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2011.608266 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2011.608266 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2863-2864




Template-Type: ReDIF-Article 1.0
Author-Name: Y. Li 
Author-X-Name-First: Y. 
Author-X-Name-Last: Li 
Author-Name: W. Lu 
Author-X-Name-First: W. 
Author-X-Name-Last: Lu 
Author-Name: M. Zhong 
Author-X-Name-First: M. 
Author-X-Name-Last: Zhong 
Title: The predictability of industry portfolio returns 
Abstract:
  This article studies the predictability of stock returns from industry
 portfolios. Consistent with the habit formation framework of Campbell and
 Cochrane (1999, 2000), we find that reasonably large portions of
 predictability of long-horizon industry portfolio returns are explained by
 the ratio of aggregate consumption in surplus of habit or its instrument,
 the consumption-wealth ratio. The time-varying &#x3b2;s and, more
 importantly, time-varying market risk premium associated with either the
 surplus consumption ratio or the consumption-wealth ratio help explain the
 predictable variation of long-horizon expected returns on over half of the
 industry portfolios. The conditional Capital Asset Pricing Model (CAPM)
 with &#x3b2;s varying with the proposed conditioning variable performs
 better than the static CAPM, but not as well as the Fama-French (1993,
 1997) three-factor model in explaining the time-series variability of
 returns. 
Journal: Applied Economics 
Pages: 2865-2881 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802360260 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360260 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2865-2881




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick McCarthy 
Author-X-Name-First: Patrick 
Author-X-Name-Last: McCarthy 
Author-Name: Aselia Urmanbetova 
Author-X-Name-First: Aselia 
Author-X-Name-Last: Urmanbetova 
Title: Production and cost in the US paper and paperboard industry 
Abstract:
  The US paper and paperboard industry has experienced significant
 structural changes over the past 25 years, including reductions in the
 number of mills, lower rates of capacity growth, employment cutbacks and a
 loss of market share to foreign competitors. These structural shifts
 portray an industry that increasingly has difficulty adapting to a more
 competitive global environment. Based on aggregate data from 1965 to 1996,
 this article estimates a short-run translog (TL) cost function for the
 industry. The estimated model fits the data well and all sample points
 satisfy monotonicity and concavity conditions at all points. Among the
 findings, the industry operates at slightly increasing returns to capital
 utilization and labour and energy are Allen-Uzawa complements but
 Morishima substitutes in production. Technological progress generated
 0.02% reduction in annual operating costs and consistent with an ailing US
 industry, estimated marginal costs approximated average operating costs
 until 1982 after which marginal costs significantly diverged from average
 operating costs. 
Journal: Applied Economics 
Pages: 2883-2893 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802599883 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599883 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2883-2893




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Author-Name: Laurent Botti 
Author-X-Name-First: Laurent 
Author-X-Name-Last: Botti 
Author-Name: Nicolas Peypoch 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Peypoch 
Author-Name: Bernardin Solonandrasana 
Author-X-Name-First: Bernardin 
Author-X-Name-Last: Solonandrasana 
Title: Managerial efficiency and hospitality industry: the Portuguese case 
Abstract:
  In this article, the innovative twostage procedure of Simar and Wilson
 (2007) is used to estimate the efficiency determinants of Portuguese hotel
 groups from 1998 to 2005. In the first stage, the hotels' technical
 efficiency is estimated with Data Envelopment Analysis (DEA), in order to
 establish which hotels have the most efficient performance. These could
 serve as peers to help improve performance of the least efficient hotels.
 In the second stage, the Simar and Wilson model is used to bootstrap the
 DEA scores with a truncated regression. The article contributes to the
 hotel industry literature by adopting a somewhat novel approach that has
 never been applied to this industry despite its managerial implications.
 The motivation for the analysis lies in the fact that during the period
 under analysis Portuguese hotels faced a number of threats. Knowing what
 the best practices are is then good news for managers and institutions. 
Journal: Applied Economics 
Pages: 2895-2905 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600145 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600145 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2895-2905




Template-Type: ReDIF-Article 1.0
Author-Name: Henrik Hammar 
Author-X-Name-First: Henrik 
Author-X-Name-Last: Hammar 
Author-Name: Tommy Lundgren 
Author-X-Name-First: Tommy 
Author-X-Name-Last: Lundgren 
Author-Name: Magnus Sjostrom 
Author-X-Name-First: Magnus 
Author-X-Name-Last: Sjostrom 
Author-Name: Matts Andersson 
Author-X-Name-First: Matts 
Author-X-Name-Last: Andersson 
Title: The kilometer tax and Swedish industry-effects on sectors and regions 
Abstract:
  An introduction of a kilometer tax for heavy goods vehicles can be
 constrained by the risk of that higher production costs than competitors
 in other countries will negatively affect regions and industries of policy
 concern. We estimate factor demand elasticities in the Swedish
 manufacturing industry using firm level data for the 1990 to 2001 period
 on input prices and quantities. The results show that the introduction of
 a kilometer tax for heavy goods vehicles decreases transport demand and
 increases labour demand. The effects are less pronounced in terms of
 changes in output, though some industries (e.g. wood, pulp and paper) can
 be expected to be affected more than others due to their dependence on
 road freight transport. The regional dimension regarding the consequences
 of a kilometer tax seems to be small or even nonexisting. 
Journal: Applied Economics 
Pages: 2907-2917 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802600608 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600608 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2907-2917




Template-Type: ReDIF-Article 1.0
Author-Name: Johannes Fedderke 
Author-X-Name-First: Johannes 
Author-X-Name-Last: Fedderke 
Author-Name: Dietmar Naumann 
Author-X-Name-First: Dietmar 
Author-X-Name-Last: Naumann 
Title: An analysis of industry concentration in South African manufacturing, 1972-2001 
Abstract:
  This article examines industry concentration for the South African
 manufacturing sector over the 1972-2001 period, for the three-digit
 industry classification. The article notes both the high level of industry
 concentration in South African manufacturing and a rising trend in
 concentration across a wide range of industries as measured by the Gini
 and Rosenbluth coefficients. The article examines the impact of
 concentration on investment rates using a dynamic heterogeneous panel
 estimation methodology. We find that increased concentration unambiguously
 lowers investment rates. 
Journal: Applied Economics 
Pages: 2919-2939 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840802631835 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802631835 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2919-2939




Template-Type: ReDIF-Article 1.0
Author-Name: Uwe Cantner 
Author-X-Name-First: Uwe 
Author-X-Name-Last: Cantner 
Author-Name: Jens Kruger 
Author-X-Name-First: Jens 
Author-X-Name-Last: Kruger 
Author-Name: Kristina von Rhein 
Author-X-Name-First: Kristina 
Author-X-Name-Last: von Rhein 
Title: Knowledge compensation in the German automobile industry 
Abstract:
  In studies looking at firm survival over the industry life cycle
 knowledge is one of the most important determinants. Different kinds of
 knowledge, namely post-entry experience, pre-entry experience and
 knowledge acquired by innovative activity positively influence the
 survival chances. This article investigates how different kinds of
 knowledge are able to compensate each other. A statistical survival
 analysis is performed for the German automobile industry (1886-1939) which
 applies an estimation approach that links instrumental variables with the
 Cox regression. The results highlight that innovative activity is able to
 compensate for lacking post-entry experience, supporting Schumpeterian
 creative destruction. 
Journal: Applied Economics 
Pages: 2941-2951 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840902762738 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902762738 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2941-2951




Template-Type: ReDIF-Article 1.0
Author-Name: Clarissa Yeap 
Author-X-Name-First: Clarissa 
Author-X-Name-Last: Yeap 
Title: Capacity use in multi-unit firms: evidence for efficiency gains or strategic competition in the US restaurant industry? 
Abstract:
  In this article, I examine both the full firm size distribution and
 establishment-level capacity use to determine if efficiency gains or
 strategic competition account for the proliferation of multi-unit firms in
 the US restaurant industry. Using US census microdata, I find that
 multi-unit firms operate a greater number of restaurants and larger
 individual restaurants in larger Metropolitan Statistical Areas (MSAs).
 This evidence of increased profitability goes hand in hand with increases
 in capacity utilization through longer operating hours and more intensive
 production of meals and nonmeals output at individual establishments.
 Greater capacity exploitation is consistent with efficient firms, rather
 strategic behaviour, such as product proliferation or location preemption
 to limit rivalry. Furthermore, these results hold true for multi-unit
 firms but not for large national chain systems, suggesting that efficiency
 gains accrue from firm-specific capital, not just from marketing or
 distribution scale economies. 
Journal: Applied Economics 
Pages: 2953-2968 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903299797 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2953-2968




Template-Type: ReDIF-Article 1.0
Author-Name: Bi-Huei Tsai 
Author-X-Name-First: Bi-Huei 
Author-X-Name-Last: Tsai 
Author-Name: Yiming Li 
Author-X-Name-First: Yiming 
Author-X-Name-Last: Li 
Title: Modelling competition in global LCD TV industry 
Abstract:
  This work analyses global shipments of Liquid Crystal Display Televisions
 (LCD TVs) by considering mutualism among multiple generations of LCD TVs.
 In applying the revised Lotka-Volterra equations, this study analyses the
 dynamic competitive relationship among producers of 26-, 32- and 37-inch
 LCD TVs. Equilibrium analysis is used to evaluate whether future shipment
 orbit could converge to equilibrium status. The prediction abilities of
 Bass growth model and Lotka-Volterra model are further compared to examine
 whether the Lotka-Volterra model, which incorporates the mutualism among
 multi-generation LCD TVs, performs better. The result shows that the
 relationships between 26- and 32-inch LCD TVs, and 37- and 32-inch LCD TVs
 are commensal. Sales of 32-inch LCD TVs are promoted by increased sales of
 26- or 37-inch LCD TVs. Results of the equilibrium analysis indicate that
 competition among various sizes of LCD TVs will not be stable. The
 interactions among multiple generations of LCD TVs will influence each
 other, leading to great fluctuations in sales. Since this study
 incorporates the interactive relationships among various sizes of LCD TVs
 in the proposed Lotka-Volterra equations, the ability of the
 Lotka-Volterra model to predict the market evolution of LCD TVs is
 superior to that of the Bass model. 
Journal: Applied Economics 
Pages: 2969-2981 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.530222 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.530222 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2969-2981




Template-Type: ReDIF-Article 1.0
Author-Name: Lila Truett 
Author-X-Name-First: Lila 
Author-X-Name-Last: Truett 
Author-Name: Dale Truett 
Author-X-Name-First: Dale 
Author-X-Name-Last: Truett 
Title: The Korean textile industry: still competitive, after all these years? 
Abstract:
  Although a vital part of the economy, the Korean textile industry has
 been challenged by the recent reduction of international trade barriers,
 particularly as this industry was fully integrated into General Agreement
 on Tariffs and Trade (GATT) in 2005. The textile industries in Japan and
 many other countries have also faced difficulties. This study examines
 future prospects for the Korean industry by investigating the presence of
 economies of scale and relationships among the inputs of domestic capital,
 labour and intermediate goods, as well as foreign intermediate goods. The
 findings are consistent with constant returns to scale and a substitutes
 relationship among all input pairs except for domestic capital and foreign
 intermediate goods. Thus, there appear to be no further cost reductions
 available through increased output and economies of scale. However, some
 reduction in industry output may not result in increased unit costs
 either. A reduction in the price of foreign intermediate goods will not
 only increase the demand for domestic capital, but also, at least in the
 short run, add stress to the industry as it decreases the demand for
 domestic labour and domestic intermediate goods. 
Journal: Applied Economics 
Pages: 2983-2992 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.528374 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.528374 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2983-2992




Template-Type: ReDIF-Article 1.0
Author-Name: Louis Lu 
Author-X-Name-First: Louis 
Author-X-Name-Last: Lu 
Title: Before and after the millennium: productivity analysis of the supply chain of Taiwan's IC industry 
Abstract:
  Taiwan's Integrated Circuit (IC) industry has achieved excellent
 performance in the past decades. However, it has also consumed a lot of
 national resources in both human capital and financial capital. National
 valuable resources are limited and, as such, allocating resources to the
 most effective sector is critical for enhancing national competitiveness
 further in the future. This study adopts the Data Envelopment Analysis
 (DEA) method to evaluate the production efficiency of Taiwan's IC
 subsectors. 10 years of data, from 1995 to 2004, have been used to conduct
 the research. The productivities before and after the year 2000 are
 compared to see if there are any differences between the periods of
 economic upturn and downturn. The analysis finds that the IC design sector
 is the most worthwhile one in which a country's treasurable resources can
 be invested. However, the IC manufacturing and IC testing/packaging
 sectors are inefficient over an economic downturn due to their heavy
 capital investment. The results provide some insights for policy-makers. 
Journal: Applied Economics 
Pages: 2993-2996 
Issue: 22 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903357348 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357348 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2993-2996




Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Moscone 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Moscone 
Title: Geographical variations in expenditure of learning disability services in England 
Abstract:
  This article investigates the determinants of local authority Learning
 Disability (LD) expenditure in England. It adopts a reduced form of demand
 and supply model, extended to account for possible interdependence between
 municipalities. Risk factors such as 'people aged under 14', 'mortality
 rate' and 'lone parents' seem to play an important role in explaining
 geographical variation of spending. Further, labour municipalities on
 average allocate lower resources on LD than do other political parties.
 Finally, results corroborate recent findings in economics that authorities
 interact with each other when allocating public resources. 
Journal: Applied Economics 
Pages: 2997-3005 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903425194 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903425194 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:2997-3005




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Harris 
Author-X-Name-First: Richard 
Author-X-Name-Last: Harris 
Author-Name: Qian Cher Li 
Author-X-Name-First: Qian Cher 
Author-X-Name-Last: Li 
Title: Participation in export markets and the role of R&D: establishment-level evidence from the UK Community Innovation Survey 2005 
Abstract:
  There is a strong expectation in the literature that exporting and
 innovation activities (particularly R&D) are strongly related, and that
 the need to be innovative is increasing over time due to globalization. In
 this study, we find that R&D is endogenous in a model that determines
 which British establishments enter export markets, and when such
 simultaneity is taken into account the strength of the export-innovation
 relationship is generally quite weak (especially in the nonmanufacturing
 sector). Rather, we find that the size of establishments and firms,
 foreign ownership, the extent of international co-operation and, most
 importantly, the industry sector to which the establishment belongs, are
 the most significant in explaining which establishments are able to
 overcome entry barriers into overseas markets. 
Journal: Applied Economics 
Pages: 3007-3020 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903427190 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427190 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3007-3020




Template-Type: ReDIF-Article 1.0
Author-Name: Egon Franck 
Author-X-Name-First: Egon 
Author-X-Name-Last: Franck 
Author-Name: Stephan Nuesch 
Author-X-Name-First: Stephan 
Author-X-Name-Last: Nuesch 
Title: The effect of wage dispersion on team outcome and the way team outcome is produced 
Abstract:
  The impact of intra-team pay dispersion on team productivity is a highly
 discussed issue. On the one hand, wage differentials provide incentives
 for higher employee effort. On the other hand, pay inequality may reduce
 team cohesiveness and increase feelings of relative deprivation leading to
 lower performance. Analysing nonlinear effects of wage dispersion in
 professional soccer, we find empirical evidence that team performance is
 strongest when there is either very high or very low wage inequality.
 Medium levels produce the weakest team performance. In addition, we show
 that the pay structure affects the team's playing style even after
 controlling for team and coach heterogeneity. We discuss the theoretical
 and managerial implications as well as the limits of generalization. 
Journal: Applied Economics 
Pages: 3037-3049 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903427224 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427224 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3037-3049




Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Andersson 
Author-X-Name-First: Fredrik 
Author-X-Name-Last: Andersson 
Author-Name: Iben Bolvig 
Author-X-Name-First: Iben 
Author-X-Name-Last: Bolvig 
Author-Name: Matthew Freedman 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Freedman 
Author-Name: Julia Lane 
Author-X-Name-First: Julia 
Author-X-Name-Last: Lane 
Title: Lost jobs and health insurance: an analysis of the impact of employment volatility on firm-provided health insurance 
Abstract:
  It is an established fact that there are high levels of employment
 volatility in the US. Despite the importance of employer-provided benefits
 in the US health insurance system the impact of prior job instability on
 one's future ability to obtain insurance coverage is not well understood.
 This article finds a negative relationship between the volatility of a
 worker's employment and her likelihood of receiving firm-provided health
 insurance. Previous employment volatility reduces each of the four factors
 necessary to receive such insurance: a worker's subsequent chances of
 getting a job, her chances of getting a job in a firm that offers
 coverage, her chances of staying with the firm long enough to become
 eligible for coverage and her ability to take up insurance if offered. The
 most important impact is on the last: her ability to take up insurance if
 offered. Lack of employment is not the only, and not even the largest,
 barrier to individual coverage under this system. This finding has
 important policy implications, particularly given the recent tendency of
 employers to shift the cost of insurance premiums onto their employees. 
Journal: Applied Economics 
Pages: 3051-3073 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903427232 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427232 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3051-3073




Template-Type: ReDIF-Article 1.0
Author-Name: Chrysovalantis Karafillis 
Author-X-Name-First: Chrysovalantis 
Author-X-Name-Last: Karafillis 
Author-Name: Evaggelos Papanagiotou 
Author-X-Name-First: Evaggelos 
Author-X-Name-Last: Papanagiotou 
Title: Innovation and total factor productivity in organic farming 
Abstract:
  This article measures the contribution of innovations to Total Factor
 Productivity (TFP) of organic olive farmers. By constructing an innovation
 variable instead of using a time trend, technical change is replaced by
 technical difference and TFP growth becomes TFP difference. Primary
 cross-section data on organic olive enterprises from a Greek region is
 used in the application of the stochastic frontier profit function.
 Farmers are classified into groups according to their innovative
 'profile'. TFP difference among consecutive innovation groups is
 decomposed into technical difference and adjustment in innovativeness
 effects. Results indicate that more innovative farmers perform better than
 less innovative ones regarding TFP scores. The rate of technical
 difference is always positive to the formation of TFP difference, whereas
 the adjustment in innovativeness effects varies among the innovation
 groups. Nevertheless, high-tech capital is to a different extent
 under-utilized, regardless of the innovation group. 
Journal: Applied Economics 
Pages: 3075-3087 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903427240 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427240 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3075-3087




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Hopp 
Author-X-Name-First: Christian 
Author-X-Name-Last: Hopp 
Author-Name: Finn Rieder 
Author-X-Name-First: Finn 
Author-X-Name-Last: Rieder 
Title: What drives venture capital syndication? 
Abstract:
  Using a sample of 1485 funded firms in Germany, we analyse the driving
 forces of Venture Capitalist (VC) syndication and try to disentangle the
 circumstances under which VCs engage in collaboration with partners. The
 results indicate that syndication is more pronounced for younger funded
 firms. For firms where products are far from commercialization, the risks
 that investors face are more severe. With respect to disentangling the
 role of diversification and managerial resource motives we analyse the
 impact of syndication activities on the industry concentration in VC
 portfolios. The results indicate that (all else equal) more syndication
 leads to more pronounced concentration on certain industries. These
 findings are in line with the argument that VCs involve partners to
 leverage upon their idiosyncratic skills and knowledge to either improve
 deal selection and/or provide a better quality of managerial advice to the
 funded firm rather than simply using syndication to diversify portfolios. 
Journal: Applied Economics 
Pages: 3089-3102 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903427257 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427257 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3089-3102




Template-Type: ReDIF-Article 1.0
Author-Name: Chuang Yuang Lin 
Author-X-Name-First: Chuang Yuang 
Author-X-Name-Last: Lin 
Author-Name: Dar Hsin Chen 
Author-X-Name-First: Dar Hsin 
Author-X-Name-Last: Chen 
Author-Name: Chin Yu Tsai 
Author-X-Name-First: Chin Yu 
Author-X-Name-Last: Tsai 
Title: The limitation of monotonicity property of option prices: an empirical evidence 
Abstract:
  Many option pricing models are based on the assumption that the
 underlying asset price follows one-dimensional diffusion process. An
 alternative approach is to test the properties that should hold for all
 models based on a given stochastic process for the underlying asset.
 Following Perignon (2006), we test the empirical validity of the
 monotonicity property for option prices by collecting all transaction data
 from 1 July 2006 to 31 December 2006 for option contracts traded on the
 Taiwan Futures Exchange (TAIFEX). We find that sampled intraday option
 prices violate the monotonicity property between 29.97% and 57% of the
 time, and that call and put prices often increase, or decrease, together.
 We also find evidence to show that the frequent violations of the
 monotonicity property are to a large extent attributable to microstructure
 effects and that they arise from rational trading tactics. 
Journal: Applied Economics 
Pages: 3103-3113 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903427265 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427265 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3103-3113




Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Mastrogiacomo 
Author-X-Name-First: Mauro 
Author-X-Name-Last: Mastrogiacomo 
Author-Name: Nicole Bosch 
Author-X-Name-First: Nicole 
Author-X-Name-Last: Bosch 
Title: Tax credits, labour participation and home production in the Netherlands 
Abstract:
  We set up a dynamic reduced form model of labour market participation for
 women who balance career and motherhood. The model accounts for the
 occurrence of future child birth and early retirement, and includes home
 production; however, it does not require the estimation of a structural
 model. Careful implementation of pension institutions can return optimal
 life patterns of participation without the need of a structural approach.
 The weaker theoretical framework is compensated by the rich spectrum of
 possible policy simulations. As illustration, we simulate the effect of
 two tax credits policy options on the hazard rate out of work. 
Journal: Applied Economics 
Pages: 3115-3128 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903459953 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903459953 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3115-3128




Template-Type: ReDIF-Article 1.0
Author-Name: William Blankenau 
Author-X-Name-First: William 
Author-X-Name-Last: Blankenau 
Author-Name: Steven Cassou 
Author-X-Name-First: Steven 
Author-X-Name-Last: Cassou 
Title: Industry estimates of the elasticity of substitution and the rate of biased technological change between skilled and unskilled labour 
Abstract:
  We estimate the elasticity of substitution between skilled and unskilled
 labour and the pace of skill-biased technological change at the industry
 level. The data is compiled from the March extract of the Current
 Population Survey (CPS) from 1968 to 2006. Industry information provided
 by the survey is used to group workers into 13 industry categories and
 education levels are used to dichotomize workers as skilled or unskilled.
 We construct measures of the ratio of skilled to unskilled employment and
 the ratio of skilled to unskilled wages in each industry. Using a
 relationship implied by profit maximizing behaviour on the part of
 representative firms, this data generates estimates of structural
 parameters. We find considerable differences across industries in the
 elasticity of substitution between skilled and unskilled labour.
 Furthermore, while most industries have experienced skill-biased
 technological change, the pace of this change has varied widely across
 industries. 
Journal: Applied Economics 
Pages: 3129-3142 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903476361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903476361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3129-3142




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Glass 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Glass 
Title: The rise and fall of Railtrack PLC: an event study 
Abstract:
  Forming Railtrack was a key part of the privatization of British Rail
 (BR). Railtrack took over the ownership of BR's fixed infrastructure in
 April 1994 and its parent company, the Railtrack Group, was floated in May
 1996 on the London Stock Exchange (LSE). Despite the group posting some
 excellent financial results in the early years, Railtrack's record on
 infrastructure improvement and safety was frequently criticized. This
 apparent inconsistency between shareholder interests and public service
 obligations culminated in Railtrack being placed in administration in
 October 2001. In view of this apparent inconsistency and the High Court
 claim for additional compensation brought against the government by a
 group of 49 000 small investors, the reaction of the stock market to 19
 key events is modelled. Among other things, we find when Railtrack
 announced after the fatal derailment of a high-speed train near the
 Hertfordshire town of Hatfield that there would be a 6-month programme of
 emergency track repairs, the Group's share price was marked down, but it
 did not plummet. Even though Railtrack was in panic mode, it appears that
 investors decided to hold onto their shares, believing the panic would
 have no long-term repercussions. This proved to be a huge error of
 judgement. 
Journal: Applied Economics 
Pages: 3143-3153 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903476379 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903476379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3143-3153




Template-Type: ReDIF-Article 1.0
Author-Name: Michiel van Leuvensteijn 
Author-X-Name-First: Michiel 
Author-X-Name-Last: van Leuvensteijn 
Author-Name: Jacob Bikker 
Author-X-Name-First: Jacob 
Author-X-Name-Last: Bikker 
Author-Name: Adrian van Rixtel 
Author-X-Name-First: Adrian 
Author-X-Name-Last: van Rixtel 
Author-Name: Christoffer Kok S&#xf8;rensen 
Author-X-Name-First: Christoffer Kok 
Author-X-Name-Last: S&#xf8;rensen 
Title: A new approach to measuring competition in the loan markets of the euro area 
Abstract:
  This article is the first that applies a new measure of competition, the
 Boone indicator, to the banking industry. This approach is able to measure
 competition of bank market segments, such as the loan market, whereas many
 well-known measures of competition can consider the entire banking market
 only. Like most other model-based measures, this approach ignores
 differences in bank product quality and design, as well as the
 attractiveness of innovations. We measure competition on the lending
 markets in the five major EU countries as well as, for comparison, the UK,
 the US and Japan. Our findings indicate that over the period 1994-2004 the
 US had the most competitive loan market, whereas overall loan markets in
 Germany and Spain were among the best competitive in the EU. The
 Netherlands occupied a more intermediate position, whereas in Italy
 competition declined significantly over time. The French, Japanese and UK
 loan markets were generally less competitive. 
Journal: Applied Economics 
Pages: 3155-3167 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903493234 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903493234 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3155-3167




Template-Type: ReDIF-Article 1.0
Author-Name: Norbert Michel 
Author-X-Name-First: Norbert 
Author-X-Name-Last: Michel 
Title: Another look at the spending response to the 2001 income tax rebates 
Abstract:
  This article revisits the spending response to the 2001 US tax rebates by
 focussing on two key aspects of how tax policy researchers use the
 Consumer Expenditure Survey (CEX). These two attributes, which are often
 overlooked, are as follows: the measures used for consumption and the
 'outlier' criteria applied to the data. First, I reproduce the results in
 Johnson et al. (2006), which (using the CEX) concluded that households
 immediately spent 20-40% of their rebates on nondurable consumption goods.
 Then, I show how making two changes - both of which are relied upon in the
 literature - affects their results. These adjustments reduce the estimated
 magnitude of the rebate's impact by as much as 100%. 
Journal: Applied Economics 
Pages: 3169-3174 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903493242 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903493242 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3169-3174




Template-Type: ReDIF-Article 1.0
Author-Name: Armando Barrientos 
Author-X-Name-First: Armando 
Author-X-Name-Last: Barrientos 
Author-Name: Rachel Sabates-Wheeler 
Author-X-Name-First: Rachel 
Author-X-Name-Last: Sabates-Wheeler 
Title: Strategic complementarities and social transfers: how do PROGRESA payments impact nonbeneficiaries? 
Abstract:
  The article examines local economy effects of social transfers by
 focusing on food consumption and asset holdings of noneligible households
 in rural Mexico following the introduction of Programa de Educacion, Salud
 y Alimentacion (PROGRESA) in 1997. The quasi experimental nature of the
 evaluation data collected for the purposes of evaluating the impact of
 PROGRESA enables comparison of welfare indicators among noneligible
 households in treatment areas and control areas. The analysis finds that
 noneligible households in treatment areas show significantly higher levels
 of food consumption and asset holdings following the introduction of
 PROGRESA, compared to noneligible households in control areas. These
 results are interpreted to suggest that transfers in poor rural areas in
 Mexico enable agents to interact more strategically such that
 nonbeneficiaries, as well as beneficiaries, reap consumption and
 production advantages. 
Journal: Applied Economics 
Pages: 3175-3185 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903493259 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903493259 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3175-3185




Template-Type: ReDIF-Article 1.0
Author-Name: Anh Tran 
Author-X-Name-First: Anh 
Author-X-Name-Last: Tran 
Author-Name: Bang Nam Jeon 
Author-X-Name-First: Bang Nam 
Author-X-Name-Last: Jeon 
Title: The dynamic impact of macroeconomic factors on initial public offerings: evidence from time-series analysis 
Abstract:
  This article examines the explanatory power and the dynamic impact of
 macroeconomic conditions on Initial Public Offering (IPO) activities in US
 during the period from 1970 to 2005. Applying time-series econometric
 techniques, we find the existence of long-run equilibrium relationships
 between IPO activities and selected macroeconomic variables. Stock market
 performance and volatility are shown to play the most important role in
 the timing of IPOs. The Fed funds rate and the 10 year US Treasury Bond
 (TB) yield play a comparable role in determining the amount of proceeds
 raised in the IPOs. There also exist different short-run dynamic
 adjustment mechanisms between IPOs and macroeconomic factors towards the
 long run equilibrium path and they are mostly completed within the period
 of 6 months to 1 year. The results have some useful implications for
 forecasting IPO activities. 
Journal: Applied Economics 
Pages: 3187-3201 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903493267 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903493267 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3187-3201




Template-Type: ReDIF-Article 1.0
Author-Name: Tarja Viitanen 
Author-X-Name-First: Tarja 
Author-X-Name-Last: Viitanen 
Title: Child care voucher and labour market behaviour: experimental evidence from Finland 
Abstract:
  This article provides experimental estimates of the impact of a voucher
 for private care on labour force participation and use of private and
 public child care within the Nordic system of universal provision of
 public care. In a market that was providing high-quality, low-cost public
 child care, a voucher is nevertheless found to have a significant,
 positive effect for the use of private child care with zero effects on
 either use of public care or labour force participation. The use of
 private increased by five percentage points in the whole country and by
 five to seven percentage points in areas that suffer from excess demand
 for child care as a result of the introduction of the private child care
 voucher. 
Journal: Applied Economics 
Pages: 3203-3212 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903508346 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3203-3212




Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Ferrero 
Author-X-Name-First: Giuseppe 
Author-X-Name-Last: Ferrero 
Author-Name: Andrea Nobili 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Nobili 
Author-Name: Patrizia Passiglia 
Author-X-Name-First: Patrizia 
Author-X-Name-Last: Passiglia 
Title: Assessing excess liquidity in the euro area: the role of sectoral distribution of money 
Abstract:
  The strong and prolonged deviation of money growth from its reference
 value since 2001 has caused concern among policy-makers about the upside
 risks to price stability from monetary developments. In this article we
 provide evidence that these risks might have been smaller until 2005 than
 regularly assumed. Three basic findings support this view. First, a
 sectoral breakdown of money holdings shows that current excess liquidity
 conditions have been partly related to the acceleration of nonbank
 financial intermediaries' money demand, as well as to the accumulation of
 marketable instruments. Such increases are likely to be associated more to
 portfolio choices than to transaction motives. Second, evidence from
 balance sheet data on investment funds points to a general increase in the
 relative importance of this sector in the economy, rather than to a higher
 degree of liquidity of their asset positions, thus reflecting, to a large
 extent, a permanent change in the financial structure of the economy.
 Third, excess liquidity measures that exclude nonbank financial
 intermediaries' money holdings have more predictive power for future
 inflation at medium-term horizons than those that include them. 
Journal: Applied Economics 
Pages: 3213-3230 
Issue: 23 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903508353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3213-3230




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Massomeh Hajilee 
Author-X-Name-First: Massomeh 
Author-X-Name-Last: Hajilee 
Title: Impact of exchange rate uncertainty on commodity trade between US and Sweden 
Abstract:
  Previous studies that investigated the effects of exchange rate
 uncertainty on the trade flows of Sweden employed aggregate trade data
 either between Sweden and the rest of the world or at bilateral level
 between Sweden and her major trading partners. In this article, we
 disaggregate the trade data and employ the import and export data from 87
 industries that trade between Sweden and the US. We find that exchange
 rate volatility has significant short-run effects on the trade flows
 between the two countries in almost two-third of the industries. However,
 the short-run effects are translated into the long-run effects in
 one-third of the cases. Furthermore, the real depreciation of krona
 against the dollar was found to have favourable effects on the overall
 trade balance between the two countries. 
Journal: Applied Economics 
Pages: 3231-3251 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903508361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3231-3251




Template-Type: ReDIF-Article 1.0
Author-Name: George Symeonidis 
Author-X-Name-First: George 
Author-X-Name-Last: Symeonidis 
Title: Competition and the relative productivity of large and small firms 
Abstract:
  Using a comprehensive dataset on the incidence of price-fixing across
 British manufacturing industries in the 1950s, I compare collusive and
 competitive industries and find evidence of a negative relationship
 between collusion and the labour productivity of larger firms relative to
 smaller firms. In particular, collusion is associated with a reduction or
 even a reversal of the productivity gap between larger and smaller firms.
 This result is robust to controlling for the potential endogeneity of
 collusion. 
Journal: Applied Economics 
Pages: 3253-3264 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903508379 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3253-3264




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Aguilar 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Aguilar 
Title: Conjoint analysis of industry location preferences: evidence from the softwood lumber industry in the US 
Abstract:
  Conjoint Analysis (CA) was used to study location preferences among
 members of the softwood lumber industry in the southern and western
 regions of the US. This industry was selected as an example of a
 resource-based industry to test several hypotheses derived from location
 theory. Decision-makers, owners and managers, identified price of logs and
 distance to sources for logs as the most important location factors. A
 secondary category included wages and energy costs. Other variables such
 as cost of land, quality of access roads and distance to markets are less
 important. There were statistically significant differences in the
 part-worth estimates of raw materials and wage costs among decision-makers
 but not between regions in an ordered model for site preference. Marginal
 analysis of the price of logs stressed its importance as the major
 location factor in the softwood lumber industry. 
Journal: Applied Economics 
Pages: 3265-3274 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903508387 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508387 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3265-3274




Template-Type: ReDIF-Article 1.0
Author-Name: Sean Murphy 
Author-X-Name-First: Sean 
Author-X-Name-Last: Murphy 
Author-Name: Robert Rosenman 
Author-X-Name-First: Robert 
Author-X-Name-Last: Rosenman 
Author-Name: Jonathan Yoder 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Yoder 
Author-Name: Daniel Friesner 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Friesner 
Title: Patients' perceptions and treatment effectiveness 
Abstract:
  An extensive literature relating patients' expectations to treatment
 outcomes has not addressed the determinants of these expectations. We
 argue that treatment history is part of a reference point that influences
 the patients' expectations of how effective further treatment might be,
 thus influencing whether to proceed with additional treatment or not. We
 hypothesize that those patients with unsuccessful prior treatments have
 diminished expected improvement from subsequent treatments. Prospect
 Theory (PT) provides a theoretical foundation for reference frame effects,
 and the model is tested with data on patients diagnosed with Idiopathic
 Intracranial Hypertension (IIH). Our results support the reference frame
 hypothesis. 
Journal: Applied Economics 
Pages: 3275-3288 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903508395 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508395 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3275-3288




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Ding Li 
Author-X-Name-First: Ding 
Author-X-Name-Last: Li 
Author-Name: Yang-Cheng Lu 
Author-X-Name-First: Yang-Cheng 
Author-X-Name-Last: Lu 
Author-Name: Chia-Hao Lee 
Author-X-Name-First: Chia-Hao 
Author-X-Name-Last: Lee 
Title: Purchasing power parity for East-Asia countries: further evidence based on panel stationary test with multiple structural breaks 
Abstract:
  In this article, we re-investigate the validity of Purchasing Power
 Parity (PPP) for a sample of 10 East-Asia countries over the period of
 January 1987 to June 2005, using a recently developed econometric
 technique of the panel stationary test with multiple structural breaks,
 proposed by Carrion-i-Silvestre et&#xa0;al. (2005). This test considers
 multiple structural breaks positioned at different unknown dates and a
 different number of breaks for each individual. Empirical evidence shows
 that the PPP holds true for half of 10 East-Asia countries during the
 research period. Our results have important policy implications for these
 10 East-Asia countries under study. 
Journal: Applied Economics 
Pages: 3289-3298 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903508403 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508403 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3289-3298




Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Mazzanti 
Author-X-Name-First: Massimiliano 
Author-X-Name-Last: Mazzanti 
Author-Name: Anna Montini 
Author-X-Name-First: Anna 
Author-X-Name-Last: Montini 
Author-Name: Francesco Nicolli 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Nicolli 
Title: Embedding landfill diversion in economic, geographical and policy settings 
Abstract:
  We analyse the process of landfill diversion embedding the dynamics in a
 frame where economic, geographical and policy variables enter the arena.
 We aim at investigating in depth what main drivers may be responsible for
 such a phenomenon. We exploit a rich panel dataset covering all the 103
 Italian provinces. The case study on Italy is worth being considered
 provided that Italy is a main country in the EU, thus offering important
 pieces of information on the evaluation of policies. Evidence shows that
 the observed decoupling between economic growth and landfilling is driven
 by a mix of structural factors, as population density and waste management
 strategies. If on the one hand, the landfill tax is not arising as a
 significant driver of the phenomenon, other waste management instruments
 are associated with high significant negative effect on landfilled waste.
 In association to the features of the tariff system, we also underline the
 key role played by the share of separated collection in driving down
 landfilling of waste. Both the evolution of collection and tariff system
 are joint factors that may drive a wedge between the comparative waste
 performances of northern and southern regions. 
Journal: Applied Economics 
Pages: 3299-3311 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903559612 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903559612 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3299-3311




Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Alexander 
Author-X-Name-First: Marcus 
Author-X-Name-Last: Alexander 
Author-Name: Matthew Harding 
Author-X-Name-First: Matthew 
Author-X-Name-Last: Harding 
Author-Name: Carlos Lamarche 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Lamarche 
Title: Quantifying the impact of economic crises on infant mortality in advanced economies 
Abstract:
  Policy makers rely on a mix of government spending and tax cuts to
 address the imbalances in the economy during an economic crisis, by
 promoting price stability and renewed economic growth. However, little
 discussion appears to focus explicitly on quantifying the cost of economic
 crises in terms of human lives, especially the lives of the most
 vulnerable members of society, infants. Using a statistical approach that
 is robust to the increases of mortality in outlying years, we quantify the
 effect that economic crises, periods of prolonged economic recession, have
 on infant mortality. Moreover, we investigate whether different levels of
 public spending on health across advanced industrialized democracies can
 mitigate the impact of crises on infant mortality. We find that economic
 crises are extremely costly and lead to a more than proportional increase
 in infant mortality in the short-run. Substantial public spending on
 health is required in order to limit their impact. 
Journal: Applied Economics 
Pages: 3313-3323 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036840903559620 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903559620 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3313-3323




Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton 
Author-X-Name-First: James 
Author-X-Name-Last: Thornton 
Title: Does more medical care improve population health? New evidence for an old controversy 
Abstract:
  This article investigates the aggregate relationship between medical care
 and health for the US population. I use annual state level panel data for
 the period 1983 to 2000 to estimate static and dynamic health production
 function models. I find no compelling evidence that greater aggregate
 utilization of medical care from application of existing technology
 improves population health by lowering mortality in the short run or long
 run. My results suggest that development of new medical technologies that
 diffuse rapidly throughout the nation and at different rates across states
 may well explain much of the decline in the age-adjusted death rate over
 the past several decades, as well as persistent differences in mortality
 across geographic regions. Overall, my findings suggest that the US may be
 experiencing 'flat of the curve medicine' with future improvements in
 mortality from medical care coming from new and better technologies rather
 than greater intensity of services. 
Journal: Applied Economics 
Pages: 3325-3336 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636243 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636243 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3325-3336




Template-Type: ReDIF-Article 1.0
Author-Name: Szymon Wlazlowski 
Author-X-Name-First: Szymon 
Author-X-Name-Last: Wlazlowski 
Author-Name: Bjorn Hagstromer 
Author-X-Name-First: Bjorn 
Author-X-Name-Last: Hagstromer 
Author-Name: Monica Giulietti 
Author-X-Name-First: Monica 
Author-X-Name-Last: Giulietti 
Title: Causality in crude oil prices 
Abstract:
  Crude oil markets witness growing disparity between the quality of crudes
 supplied and demanded in the market. The market share of low-quality
 crudes is increasing due to the depletion of old fields and increasing
 demand. This is unnerving the practitioners and affecting the relevance of
 the traditional benchmark crudes due to the lack of lower quality
 benchmarks (Montepeque, 2005). In this article, we apply Granger causality
 tests to study the price dependence of 32 crudes in order to establish
 which crudes drive other prices and which ones simply follow general
 market trends. Our results indicate that some of the old benchmarks are
 still relevant while others can be disregarded. Our results also
 interestingly show that the low-quality Mediterranean Russian Urals crude,
 introduced in the late 1990s, has emerged recently as a significant driver
 of global prices. 
Journal: Applied Economics 
Pages: 3337-3347 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636250 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636250 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3337-3347




Template-Type: ReDIF-Article 1.0
Author-Name: Mete Feridun 
Author-X-Name-First: Mete 
Author-X-Name-Last: Feridun 
Title: Impact of terrorism on tourism in Turkey: empirical evidence from Turkey 
Abstract:
  This article aims at investigating the causal impact of terrorist attacks
 on the tourism industry in Turkey based on the Autoregressive Distributed
 Lag (ARDL) bounds testing procedure for the period between 1986 and 2006.
 The ARDL bounds test reveals that tourism is in a long-run equilibrium
 level relationship with terrorism. The evidence obtained from the long-run
 and short-run parameter estimates indicates the existence of a negative
 causal effect of terrorism on tourism. 
Journal: Applied Economics 
Pages: 3349-3354 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636268 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636268 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3349-3354




Template-Type: ReDIF-Article 1.0
Author-Name: Katarina Nordblom 
Author-X-Name-First: Katarina 
Author-X-Name-Last: Nordblom 
Title: The complex attitudes to alcohol taxation 
Abstract:
  Alcoholic beverages are taxed at very different rates across the EU,
 which implies extensive cross-border shopping. Therefore, there is an
 ongoing debate about harmonization of alcohol taxes among countries.
 Sweden, with a tradition of high alcohol taxes due to public health
 arguments, has the highest excise duties on spirits in the EU. But,
 because of this, the occurrence and possible problems caused by
 cross-border shopping are also extensive. Using a questionnaire survey I
 analyse the Swedes' attitudes to alcohol taxation and find that these two
 sides of the coin are important determinants. Many respondents want to
 decrease the alcohol tax, while some even want to increase it. Those most
 positive to alcohol taxation are those who regard increased alcohol
 consumption as a worrying problem and those living in areas where many
 adults are treated for alcohol-related diseases. However, the
 ordered-probit analysis also shows that those who support the EU
 membership are more supportive of reduced taxation to harmonize the
 Swedish tax with those in other EU countries. Those who live in regions
 where privately imported alcohol is substantial are also more reluctant to
 alcohol taxation. 
Journal: Applied Economics 
Pages: 3355-3364 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636276 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636276 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3355-3364




Template-Type: ReDIF-Article 1.0
Author-Name: Woojin Chung 
Author-X-Name-First: Woojin 
Author-X-Name-Last: Chung 
Author-Name: Monica Das Gupta 
Author-X-Name-First: Monica Das 
Author-X-Name-Last: Gupta 
Title: Factors influencing 'missing girls' in South Korea 
Abstract:
  Despite the massive attention drawn to 'missing girls,' there has been no
 study that specifically focuses on the association between childlessness
 and the daughter deficit. Using a bivariate probit selection model, this
 article analysed the data for 6475 married women aged 15-49 years
 collected from the 2003 Korea National Fertility and Family Health Survey.
 The results showed that a couple's decision to have a child exerted a
 significant influence on its daughter deficit. This study also found that
 the effect of a woman's education on daughter deficit did not correspond
 to that of her husband's level of education. Additionally, a prediction
 was made that if a one child family norm were prevailing in South Korea,
 the probability of a couple's having a daughter deficit would increase by
 as much as 63.9%. 
Journal: Applied Economics 
Pages: 3365-3378 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636284 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636284 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3365-3378




Template-Type: ReDIF-Article 1.0
Author-Name: Joanne Xiaolei Qian 
Author-X-Name-First: Joanne Xiaolei 
Author-X-Name-Last: Qian 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Educational expenditure in urban China: income effects, family characteristics and the demand for domestic and overseas education 
Abstract:
  Analysing survey data from 32 selected cities across China in 2003, this
 article examines parents' expenditure on their children's education from
 two aspects: factors affecting domestic education expenditure and factors
 affecting expenditure on overseas education. The main findings that emerge
 from this study are as follows. First, household income has significant
 effects on the magnitude of the domestic and overseas educational
 expenditures. Second, households where mothers have senior secondary
 school or college education, and fathers are working in professional
 occupations are likely to spend more on education for their children.
 Third, being in the highest income category, having a college-educated
 father, having a mother who is a cadre or middle professional and living
 in a coastal area significantly enhances the probabilities for the
 households sending their children overseas for education. 
Journal: Applied Economics 
Pages: 3379-3394 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636292 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636292 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3379-3394




Template-Type: ReDIF-Article 1.0
Author-Name: G. J. Power 
Author-X-Name-First: G. J. 
Author-X-Name-Last: Power 
Author-Name: C. Turvey 
Author-X-Name-First: C. 
Author-X-Name-Last: Turvey 
Title: What explains long memory in futures price volatility? 
Abstract:
  Long memory in futures price volatility is a well-documented stylized
 fact with implications for market efficiency, risk management, forecasting
 and option pricing bias. The implications of long-memory differ, however,
 based on whether it is of a 'fractional' or of a 'stochastic' type. The
 aims of this article are to determine, in the case of agricultural
 commodity futures data, which type better describes price volatility and
 also to evaluate several competing explanations for findings of long
 memory. The evidence presented here finds little support for three out of
 four potential explanations, namely, excessive noise in the volatility
 measure, bias in the long-memory estimator and understated SEs of the
 long-memory parameter. For the data considered, price volatility appears
 to be most likely generated by a nonfractional long-memory process such as
 a stochastic break or stochastic unit root. 
Journal: Applied Economics 
Pages: 3395-3404 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636300 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636300 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3395-3404




Template-Type: ReDIF-Article 1.0
Author-Name: Shin-Yun Wang 
Author-X-Name-First: Shin-Yun 
Author-X-Name-Last: Wang 
Author-Name: Cheng-Few Lee 
Author-X-Name-First: Cheng-Few 
Author-X-Name-Last: Lee 
Title: Fuzzy multi-criteria decision-making for evaluating mutual fund strategies 
Abstract:
  Investors often need to evaluate investment strategies according to their
 own subjective preferences based upon various criteria. This situation can
 be regarded as a Fuzzy Multiple Criteria Decision-Making (FMCDM) problem.
 The purpose of this study is to propose an FMCDM approach with fuzzy
 integral. This approach relaxes the independence assumption among criteria
 for the evaluation of the Multiple Criteria Decision-Making (MCDM)
 problems, which is oftentimes the basic assumption in applying
 hierarchical system for evaluating the strategies of selecting investment
 style. We also employ Triangular Fuzzy Numbers (TFNs) to represent the
 decision-makers' subjective preferences on the criteria, as well as for
 the criteria measurements to evaluate mutual funds investment style. To
 achieve this objective, first, we employ factor analysis to extract four
 independent common factors from those criteria. Second, we construct the
 evaluation frame using hierarchical system composed of four common factors
 with 16 evaluation criteria, and then derive the relative weights with
 respect to the considered criteria. Third, the synthetic utility value
 corresponding to each mutual fund's investment style is aggregated by the
 fuzzy weights with fuzzy performance values. Finally, we compare with
 empirical data and find that the model of FMCDM predicts the rate of
 return very accurately in certain ranges of &#x3bb;, hence the nonadditive
 fuzzy integral technique is an effective method for evaluating mutual
 funds' strategy. 
Journal: Applied Economics 
Pages: 3405-3414 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636318 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636318 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3405-3414




Template-Type: ReDIF-Article 1.0
Author-Name: Pinar Celikkol Geylani 
Author-X-Name-First: Pinar Celikkol 
Author-X-Name-Last: Geylani 
Author-Name: Spiro Stefanou 
Author-X-Name-First: Spiro 
Author-X-Name-Last: Stefanou 
Title: Productivity growth patterns in US dairy products manufacturing plants 
Abstract:
  We analyse the productivity growth patterns in the US dairy products
 industry using the Census Bureau's plant-level data set. We decompose
 Total Factor Productivity (TFP) growth into the scale and technical change
 components and analyse variability of plants' productivity by constructing
 transition matrices. We observe a cross-sectional dispersion in
 plant-level productivity growth in the industry. Even though the industry
 aggregate shows a small TFP growth rate -0.3%, quartile rank analysis
 shows that while the lowest productivity quartile plants average 1.9% loss
 in productivity, the highest productivity quartile plants average 1.1%
 growth annually. Our results show considerable movements of plants in
 their productivity rank categories overall and across age groups, and we
 find that the scale effect contribution to TFP growth accounts for about
 90% of TFP growth on average in the industry. These plants extract scale
 efficiencies over technological progress to fuel TFP growth. The youngest
 plants start with the lowest productivity growth at the initial time
 period, but they catch up older plants productivity, which present the
 highest average growth rate through years. This may indicate a
 'learning-by-doing' process for the industry. 
Journal: Applied Economics 
Pages: 3415-3432 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636326 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636326 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3415-3432




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Ferruz 
Author-X-Name-First: Luis 
Author-X-Name-Last: Ferruz 
Author-Name: Fernando Munoz 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Munoz 
Author-Name: Maria Vargas 
Author-X-Name-First: Maria 
Author-X-Name-Last: Vargas 
Title: Are traditional timing models well specified? 
Abstract:
  Traditional timing models are affected by several biases, which generate
 spurious timing and stock-picking coefficients. Academics have appointed
 different causes as the possible sources of these biases. A negative
 correlation between timing and stock-picking abilities arises as a
 consequence of the biases in traditional timing models. This article
 provides evidence for one bias commonly found in traditional timing
 models, which is related with options. We focus on this bias in view of
 the scant attention it has so far received in the literature. We believe
 one possible cause for this bias is the failure to include the cost of the
 option implicit in timing activities in the timing models, and on this
 basis, we opt for a corrected version of the Merton and Henriksson model
 (1981). This study therefore is a pioneer in the assessment of the
 magnitude of this bias and in the measurement of the impact of its
 correction on fund managers' results. Our results confirm both the
 existence of the bias and the correction of the problem when the cost of
 the option is included in timing models. The modified version of the
 Merton and Henriksson model, unlike the traditional model, reports
 positive timing and stock-picking coefficients, supporting the good
 performance by managers. 
Journal: Applied Economics 
Pages: 3433-3440 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003636334 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636334 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3433-3440




Template-Type: ReDIF-Article 1.0
Author-Name: Sanjiv Jaggia 
Author-X-Name-First: Sanjiv 
Author-X-Name-Last: Jaggia 
Title: Identifiability of the misspecified split hazard models 
Abstract:
  Unlike standard models, a split population hazard model allows the exit
 probability to be less than one. Although conceptually attractive, split
 models are prone to identification problems. In the reduced form
 estimation of the hazard function, the influence of split may not be
 distinguishable from that of neglected heterogeneity. For illustration, I
 use Monte Carlo simulations to highlight the problem of interpreting the
 structural parameters of the split Weibull and the Weibull-gamma models. 
Journal: Applied Economics 
Pages: 3441-3447 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003652422 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003652422 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3441-3447




Template-Type: ReDIF-Article 1.0
Author-Name: Sankar Mukhopadhyay 
Author-X-Name-First: Sankar 
Author-X-Name-Last: Mukhopadhyay 
Author-Name: Jeanne Wendel 
Author-X-Name-First: Jeanne 
Author-X-Name-Last: Wendel 
Title: Is post-smoking-cessation weight-gain a significant trigger for relapse? 
Abstract:
  While the Surgeon General's Consumer Guide lists weight-gain as an
 important relapse trigger, the 2001 Surgeon General's Report on Women and
 Smoking concludes, paradoxically, that actual weight-gain during cessation
 does not appear to predict relapse. This dichotomous view reflects
 longstanding scientific uncertainty about the role of weight-gain in
 triggering relapse. This scientific uncertainty, which stems from mixed
 clinical trial results, is problematic for insurance coverage decisions
 such as state Medicaid programme decisions to cover or exclude
 smoking-cessation and weight-control pharmaceuticals. Analysts hypothesize
 that selection bias may explain the inconsistency between the negative
 clinical results and the persistent view that weight-gain triggers
 relapse, if weight-concern is both a key determinant of the transition
 from 'smoker' to 'ex-smoker,' and a key moderating variable in the
 relationship between weight-gain and relapse. We therefore use the
 nationally representative 1997 National Longitudinal Survey of Youth
 (NLSY97) to test the relapse-trigger hypothesis, and conclude that
 post-smoking-cessation weight-gain triggers relapse among weight-concerned
 white women, but it is associated with quitting success among Hispanic
 women. In addition, our results do not support the hypothesis that the
 mixed clinical trial results reflect selection bias based on
 weight-concern. 
Journal: Applied Economics 
Pages: 3449-3457 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003652430 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003652430 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3449-3457




Template-Type: ReDIF-Article 1.0
Author-Name: Girma Kassie 
Author-X-Name-First: Girma 
Author-X-Name-Last: Kassie 
Author-Name: Awudu Abdulai 
Author-X-Name-First: Awudu 
Author-X-Name-Last: Abdulai 
Author-Name: Clemens Wollny 
Author-X-Name-First: Clemens 
Author-X-Name-Last: Wollny 
Title: Heteroscedastic hedonic price model for cattle in the rural markets of central Ethiopia 
Abstract:
  This study employs a heteroscedastic hedonic price model to examine the
 factors that influence cattle prices in the rural markets of central
 Ethiopia. The empirical results show that season, market location, class
 of cattle, body size and age are very important determinants of the cattle
 price. The relative weight of the phenotypic characteristics of the
 animals is among the highest of all the factors considered. These
 preferences at the farmers' and farmer traders' levels are the ones that
 matter most in shaping the diversity of animals kept at farm level, and
 the diversity of cattle genetic resources is quite essential for
 generating or identifying the best suited breeds of cattle, given the
 livelihood objectives of the target community. 
Journal: Applied Economics 
Pages: 3459-3464 
Issue: 24 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670614 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670614 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3459-3464




Template-Type: ReDIF-Article 1.0
Author-Name: Ulf Rinne 
Author-X-Name-First: Ulf 
Author-X-Name-Last: Rinne 
Author-Name: Marc Schneider 
Author-X-Name-First: Marc 
Author-X-Name-Last: Schneider 
Author-Name: Arne Uhlendorff 
Author-X-Name-First: Arne 
Author-X-Name-Last: Uhlendorff 
Title: Do the skilled and prime-aged unemployed benefit more from training? Effect heterogeneity of public training programmes in Germany 
Abstract:
  This study analyses the treatment effects of public training programmes
 for the unemployed in Germany. Based on propensity score matching methods,
 we extend the picture that has been sketched in previous studies by
 estimating the treatment effects of medium-term programmes for different
 skill and age groups. Our results indicate that programme participation
 has a positive impact on employment probabilities and earnings for almost
 all sub-groups. We find little evidence for the presence of heterogeneous
 treatment effects, and the magnitude of the differences is quite small.
 Our results thus - at least in part - conflict with the strategy to
 provide training increasingly to individuals with better employment
 prospects. 
Journal: Applied Economics 
Pages: 3465-3494 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670697 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3465-3494




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Ayala 
Author-X-Name-First: Luis 
Author-X-Name-Last: Ayala 
Author-Name: Carolina Navarro 
Author-X-Name-First: Carolina 
Author-X-Name-Last: Navarro 
Author-Name: Mercedes Sastre 
Author-X-Name-First: Mercedes 
Author-X-Name-Last: Sastre 
Title: Cross-country income mobility comparisons under panel attrition: the relevance of weighting schemes 
Abstract:
  This article aims to present an assessment of the effects of panel
 attrition on income mobility comparisons for some EU countries by using
 the European Community Household Panel (ECHP). There are different
 possibilities of correcting the attrition problem by means of alternative
 longitudinal weighting schemes. The sensitivity of mobility estimates to
 these attrition correction procedures is tested in this article. Our
 results show that ECHP attrition is characterized by a certain degree of
 selectivity but only affecting some variables and countries. Different
 probability models corroborate the existence of a certain nonrandom
 attrition. The model chosen to construct the longitudinal weights to
 correct attrition offers up rather different results than those obtained
 when Eurostat's longitudinal weights are used. Although attrition does not
 seem to have a great effect on aggregated mobility indicators, it does
 have a decisive effect on decomposition exercises. Our tests reveal
 certain sensitivity of income mobility measures to the weighting system
 used. 
Journal: Applied Economics 
Pages: 3495-3521 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670705 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670705 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3495-3521




Template-Type: ReDIF-Article 1.0
Author-Name: Ryan Compton 
Author-X-Name-First: Ryan 
Author-X-Name-Last: Compton 
Author-Name: Daniel Giedeman 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Giedeman 
Title: Panel evidence on finance, institutions and economic growth 
Abstract:
  This article investigates whether the level of institutional development
 affects the link between financial development and economic growth. Using
 a range of cross-sectional and panel approaches we find that the positive
 effect of banking development on growth is reduced as the level of
 institutions (e.g. rule of law, lack of corruption) increases. We do not,
 however, find a similar result when we examine the joint effect of
 institutional level and stock market development on economic growth. We
 attribute these results to the ability of banks to perform functions
 similar to those provided by well-operating institutions, whereas stock
 markets do not perform such comparable functions. 
Journal: Applied Economics 
Pages: 3523-3547 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670713 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670713 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3523-3547




Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Devicienti 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Devicienti 
Author-Name: Ambra Poggi 
Author-X-Name-First: Ambra 
Author-X-Name-Last: Poggi 
Title: Poverty and social exclusion: two sides of the same coin or dynamically interrelated processes? 
Abstract:
  There is growing interest in the analysis and measurement of social
 exclusion, to complement the static and dynamic literature on income
 poverty. On theoretical grounds, social exclusion and income poverty are
 seen as different processes, but with closely interrelated dynamics.
 However, our empirical understanding of the way these two processes
 dynamically interact at the individual level is still very limited. To
 shed some light on the issue, we use a dynamic bivariate probit model,
 controlling for unobserved heterogeneity and Wooldridge (2005)-type
 initial conditions. Both the first- and second-order Markov dynamics are
 examined. We estimate the model using the Italian sample of the European
 Community Household Panel (ECHP), waves 1-8, and find a sizable extent of
 state dependence in both poverty and social exclusion. Moreover, there are
 dynamic cross-effects implying that poverty and social exclusion are
 mutually reinforcing. Social policies aimed at eradicating poverty and
 avoiding individuals' social and economic marginalization should take
 these interaction effects explicitly into account. 
Journal: Applied Economics 
Pages: 3549-3571 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670721 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670721 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3549-3571




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Bafumi 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Bafumi 
Title: Animal spirits: the effect of economic expectations on economic output 
Abstract:
  The public is characterized as able forecasters of future economic
 performance. They engage in rational expectations. Empirical evidence
 exists to bolster the claim. This article considers the possibility that
 the public does more than predict economic output. They may engage in a
 self-fulfilling prophecy where belief about the future economy translates
 into personal financial behaviour (e.g., consumption and investment) that
 actually drives economic performance. After controlling for rational
 expectations with elite forecasts, leading indicators and past economic
 performance, it is shown that between 5% and one-third of the variance in
 economic output can be explained by prospective economic sentiment. This
 result has broad implications for electoral behaviour research. 
Journal: Applied Economics 
Pages: 3573-3589 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670739 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670739 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3573-3589




Template-Type: ReDIF-Article 1.0
Author-Name: Ofer Azar 
Author-X-Name-First: Ofer 
Author-X-Name-Last: Azar 
Author-Name: Michael Bar-Eli 
Author-X-Name-First: Michael 
Author-X-Name-Last: Bar-Eli 
Title: Do soccer players play the mixed-strategy Nash equilibrium? 
Abstract:
  Mixed-Strategy Nash Equilibrium (MSNE) is a commonly used solution
 concept in game-theoretic models in various fields in economics,
 management and other disciplines, but the experimental results whether the
 MSNE predicts well actual play in games is mixed. Consequently, the
 evidence for naturally occurring games in which the MSNE predicts the
 outcome well is of great importance, as it can justify the vast use of
 MSNE in models. The game between the kicker and the goalkeeper in soccer
 penalty kicks is a real-world game that can be used to examine the
 application of the MSNE concept or its accuracy, because payoffs are a
 common knowledge, the players have huge incentives to play correctly, the
 game is simple enough to analyse, its Nash equilibrium is in mixed
 strategies, and players' actions can be observed. We collected and
 analysed the data on the direction of kicks and jumps in penalty kicks in
 various top leagues and tournaments. Our analysis suggests that the MSNE
 predictions are the closest to the actual sample data, even though some
 other prediction methods use information on the marginal distribution of
 kicks or jumps, whereas the MSNE does not. 
Journal: Applied Economics 
Pages: 3591-3601 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670747 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670747 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3591-3601




Template-Type: ReDIF-Article 1.0
Author-Name: Katsushi Imai 
Author-X-Name-First: Katsushi 
Author-X-Name-Last: Imai 
Author-Name: Raghav Gaiha 
Author-X-Name-First: Raghav 
Author-X-Name-Last: Gaiha 
Author-Name: Woojin Kang 
Author-X-Name-First: Woojin 
Author-X-Name-Last: Kang 
Title: Vulnerability and poverty dynamics in Vietnam 
Abstract:
  Drawing upon the Vietnam Household Living Standards Survey (VHLSS) data
 that cover the whole of Vietnam in 2002 and 2004, ex ante measures of
 vulnerability are constructed. These are then compared with static
 indicators of poverty (i.e. the headcount ratio in a particular year).
 Detailed analyses of the panel data show that (i) in general,
 vulnerability in 2002 translates into poverty in 2004; (ii) vulnerability
 of the poor tends to perpetuate their poverty and (iii) sections of the
 nonpoor but vulnerable slip into poverty. Durable reduction in poverty is
 conditional on (i) accurate identification of the vulnerable, (ii) their
 sources of vulnerability and (iii) design of social safety nets that would
 enable the vulnerable to reduce risks and cope better with rapid
 integration of markets with the larger global economy. 
Journal: Applied Economics 
Pages: 3603-3618 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670754 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670754 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3603-3618




Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Aleem 
Author-X-Name-First: Abdul 
Author-X-Name-Last: Aleem 
Author-Name: Amine Lahiani 
Author-X-Name-First: Amine 
Author-X-Name-Last: Lahiani 
Title: Estimation and evaluation of core inflation measures 
Abstract:
  This article estimates and evaluates different measures of core inflation
 for India by employing statistical and econometric approaches. We estimate
 Wholesale Price Index (WPI) ex-food, WPI ex-food and energy, 20%
 asymmetric trimmed mean, 63rd percentile and Structural Vector
 Autoregression (SVAR) measures of core inflation. The trimmed mean, 63rd
 percentile and SVAR measures are unbiased, less volatile and highly
 correlated to headline inflation. The predictive accuracy of the different
 core inflation measures used in this article is assessed. The overall
 result suggests that a 20% asymmetric trimmed mean and SVAR measures of
 core inflation can be useful for the policy purposes. 
Journal: Applied Economics 
Pages: 3619-3629 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670770 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670770 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3619-3629




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Seema Narayan 
Author-X-Name-First: Seema 
Author-X-Name-Last: Narayan 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Is health care really a luxury in OECD countries? Evidence from alternative price deflators 
Abstract:
  This article examines whether real Health-care Expenditure (HE) is a
 luxury or necessity for Organization for Economic Co-operation and
 Development (OECD) countries over the period 1972 to 2004 within a panel
 unit root and panel cointegration framework. To realize this objective, we
 regress HE on real Gross Domestic Product (GDP), the proportion of the
 population aged over 65 (P65) and a time trend (T). We first present
 results for 18 countries where real HE per capita is obtained using a
 general GDP deflator. For these countries, we find that health care is a
 luxury for just one country. Next, we present results for eight countries
 where real HE is obtained using a specific health-care price index. When
 the general GDP deflator is replaced with a specific health-care price
 index, at least one of the GDP, P65 or T coefficients for the eight
 countries changes in a reasonably dramatic fashion, suggesting that the
 use of the GDP deflator introduces bias into the regression. We find that
 HE is a necessity in all eight countries. Given that the reliability of
 the GDP deflator results is questionable, on the basis of the results for
 the eight countries, we conclude that HE is a necessity. 
Journal: Applied Economics 
Pages: 3631-3643 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670788 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3631-3643




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Morrisey 
Author-X-Name-First: Michael 
Author-X-Name-Last: Morrisey 
Author-Name: David Grabowski 
Author-X-Name-First: David 
Author-X-Name-Last: Grabowski 
Title: Gas prices, beer taxes and GDL programmes: effects on auto fatalities among young adults in the US 
Abstract:
  Efforts to reduce teenage driving fatalities can be categorized as:
 enhancing driving skills, constraining driving behaviour and limiting the
 exposure of young drivers to the road. This article uses state-year
 specific Fatality Analysis Reporting System (FARS) data on the motor
 vehicle fatalities of young adults aged 15-24 to estimate the effects of
 gasoline prices, beer taxes and the enactment of Graduated Drivers License
 (GDL) programmes over the 1985-2006 period. Results indicate that a 10%
 increase in gasoline prices reduce fatalities by 3.2-6.2%. The largest
 percentage reductions occurred among 15- to 17-year-old drivers. 10%
 higher beer taxes were estimated to reduce motor vehicle fatalities among
 young drivers by approximately 1.3%. In this case, there was virtually no
 effect on 15- to 17-year-old drivers. Finally, the introduction of more
 restrictive GDL programmes, those with a 6-month learner's permit phase
 and subsequent limits on early nighttime driving or on the number of
 passengers, reduced fatalities among 15- to 17-year-old drivers by 24%.
 The effects on 18- to 21-year-old drivers were smaller and the weakest GDL
 programmes had no effect on fatalities. 
Journal: Applied Economics 
Pages: 3645-3654 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670796 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3645-3654




Template-Type: ReDIF-Article 1.0
Author-Name: Hashem Dezhbakhsh 
Author-X-Name-First: Hashem 
Author-X-Name-Last: Dezhbakhsh 
Author-Name: Paul Rubin 
Author-X-Name-First: Paul 
Author-X-Name-Last: Rubin 
Title: From the 'econometrics of capital punishment' to the 'capital punishment' of econometrics: on the use and abuse of sensitivity analysis 
Abstract:
  The academic debate over the deterrent effect of capital punishment has
 intensified again with a major policy outcome at stake. About two dozen
 empirical studies have recently emerged that explore the issue. Donohue
 and Wolfers (2005) claim to have examined the recent studies and shown the
 evidence not to be robust to specification changes. We argue that the
 narrow scope of their study does not warrant this claim. Moreover,
 focusing on our two studies that they have examined, we show the
 deterrence findings to be robust, while their work has serious flaws and
 their reporting appears to be selective. The selectivity is biased towards
 showing 'no deterrence'. 
Journal: Applied Economics 
Pages: 3655-3670 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003670804 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3655-3670




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Podrecca 
Author-X-Name-First: Elena 
Author-X-Name-Last: Podrecca 
Title: Labour market institutions and wage setting: evidence for OECD countries 
Abstract:
  The main channel through which labour market institutions are supposed to
 work in affecting unemployment is through their effects on the key
 parameters of the wage curve. In particular, labour market institutions
 may have both a direct wage push (or level) effect, i.e. change the level
 of the real wage for any given level of the unemployment rate and
 productivity, and an indirect slope effect, i.e. change the responsiveness
 of the real wage to the unemployment rate. The question this article
 addresses is whether there is any evidence that these transmission
 mechanisms were at work in a group of 20 Organization for Economic
 Co-operation and Development (OECD) countries over the period 1960 to
 1999. The analysis is accomplished in two steps. Pooled Mean Group (PMG)
 estimates of a wage equation including unemployment, productivity and a
 set of wage push institutions are first obtained, allowing only a subset
 of institutional coefficient to be homogeneous, while leaving the
 unemployment and other coefficients free to differ across countries. The
 country specific estimates of the unemployment coefficients are then used
 to investigate whether and to what extent cross-country heterogeneity in
 the estimated wage response to unemployment is related to institutional
 differences. The results support the existence of significant wage push
 effects of union density and benefit replacement rates, and of significant
 slope effects of benefit replacement rates, benefit duration and
 employment protection. A more generous unemployment benefit structure is
 found to lower the wage responsiveness to unemployment, while higher
 employment protection, contrary to what one expects, is found to enhance
 it. No significant level and slope effects are found for the tax wedge and
 bargaining coordination. 
Journal: Applied Economics 
Pages: 3671-3686 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003689721 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689721 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3671-3686




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Brown 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Brown 
Author-Name: Kam Chan 
Author-X-Name-First: Kam 
Author-X-Name-Last: Chan 
Author-Name: Carl Chen 
Author-X-Name-First: Carl 
Author-X-Name-Last: Chen 
Title: First-author conditions: evidence from finance journal coauthorship 
Abstract:
  We study the trend and the author name-ordering rule in finance
 publication using the publication records of 21 core finance journals
 during the period from 1990 to 2004. We empirically model the underlying
 factors that affect the alphabetical ordering rule among multi-authored
 finance articles. We find that the choice of alphabetical ordering is
 based on the quality of the article, institutional heterogeneity, team
 size and cultural factors. The central argument rests upon the need to
 signal and the importance of signalling within the context of bargaining
 behaviour among coauthors. The probability of choosing alphabetical name
 ordering rule is associated with high article quality, higher ranked
 institutions, smaller research team and the presence of European authors. 
Journal: Applied Economics 
Pages: 3687-3697 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003689739 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689739 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3687-3697




Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao 
Author-X-Name-First: B. Bhaskara 
Author-X-Name-Last: Rao 
Author-Name: Artur Tamazian 
Author-X-Name-First: Artur 
Author-X-Name-Last: Tamazian 
Title: A simultaneous equations model of finance and growth: FIML estimates for India 
Abstract:
  In the relationship between economic growth and financial development, it
 is generally conceded that both variables are likely to be interdependent.
 However, no attempt has been made so far to estimate a simultaneous
 equations model to test whether finance causes growth or vice versa. This
 article uses the Full Information Maximum Likelihood (FIML) method to
 estimate a two equations model of growth and finance for India to
 determine the strength of this interdependence. Our results show that
 Financial Developments (FD) have a small but significant permanent growth
 effect. However, there is no evidence to support the view that 'where
 enterprise leads, finance follows'. 
Journal: Applied Economics 
Pages: 3699-3708 
Issue: 25 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003689747 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689747 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3699-3708




Template-Type: ReDIF-Article 1.0
Author-Name: J. K. Ashton 
Author-X-Name-First: J. K. 
Author-X-Name-Last: Ashton 
Author-Name: B. Gerrard 
Author-X-Name-First: B. 
Author-X-Name-Last: Gerrard 
Author-Name: R. Hudson 
Author-X-Name-First: R. 
Author-X-Name-Last: Hudson 
Title: Do national soccer results really impact on the stock market? 
Abstract:
  This study is a response to Klein et&#xa0;al. (2008), which was highly
 critical of earlier work by Ashton et&#xa0;al. (2003). This work
 considering the link between international soccer results and stock market
 returns was challenged by Klein et&#xa0;al. (2008), who reject the
 presence and importance of this link. In response, this work provides a
 reassessment of the link between international soccer results and stock
 market returns within Ashton et&#xa0;al. (2003). This new analysis extends
 the original work by using a larger dataset, employing an extended range
 of tests and allowing for outliers. It is reported that, contrary to the
 findings of Klein et&#xa0;al. (2008), the link between international
 soccer results and stock market prices does indeed exist particularly
 within the sample period 1984-2002 used by Ashton et&#xa0;al. (2003).
 After extending the dataset to include observations from 2002 until 2009,
 it is reported that the effect on stock market returns has declined in
 importance over this period, particularly the impact of wins. 
Journal: Applied Economics 
Pages: 3709-3717 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003689762 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3709-3717




Template-Type: ReDIF-Article 1.0
Author-Name: Abdullahi Ahmed 
Author-X-Name-First: Abdullahi 
Author-X-Name-Last: Ahmed 
Author-Name: Enjiang Cheng 
Author-X-Name-First: Enjiang 
Author-X-Name-Last: Cheng 
Author-Name: George Messinis 
Author-X-Name-First: George 
Author-X-Name-Last: Messinis 
Title: The role of exports, FDI and imports in development: evidence from Sub-Saharan African countries 
Abstract:
  The disappointing economic performance of Sub-Saharan African (SSA)
 economies in the late 1980s prompted reforms in foreign trade and Foreign
 Direct Investment (FDI) in the early 1990s. Using the Autoregressive
 Distributed Lag (ARDL) approach and Pedroni panel estimation procedures
 that allow for heterogeneity, this study found that exports and FDI have a
 significant impact on economic growth. Granger-type causality tests show
 the interrelatedness of exports, FDI, imports and income variables. The
 results also provide evidence of a two-stage causal chain of exports,
 imports and income. This article calls for more market-oriented policy
 reforms in SSA countries. 
Journal: Applied Economics 
Pages: 3719-3731 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003705303 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003705303 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3719-3731




Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Matsui 
Title: Accounting year-end dispersion and seasonality in the Japanese corporate bond market 
Abstract:
  Using monthly yield data on straight bonds, this article investigates
 seasonality in the Japanese corporate bond market. A statistical
 examination of spreads between the yield of each bond and a bond market
 index reveals that the yield spread consistently decreases from April to
 August, whereas it increases from September to December. Because
 accounting year-ends for most investors in Japan are concentrated in
 either March or December, this seasonality supports the hypotheses of
 tax-loss selling and window dressing. Moreover, the seasonality becomes
 more pronounced as the debt rating declines, consistent with the findings
 in previous studies investigating the US bond market. 
Journal: Applied Economics 
Pages: 3733-3744 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003705311 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003705311 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3733-3744




Template-Type: ReDIF-Article 1.0
Author-Name: D. Miljkovic 
Author-X-Name-First: D. 
Author-X-Name-Last: Miljkovic 
Author-Name: R. Zhuang 
Author-X-Name-First: R. 
Author-X-Name-Last: Zhuang 
Title: The exchange rate pass-through into import prices: the case of Japanese meat imports 
Abstract:
  Japan is a traditional net importer of food products in general and meat
 products in particular. Japanese meat imports come from a few countries
 thus making Japan potentially very sensitive to the swings in one or a few
 bilateral exchange rates. One of the key contributions of this article is
 the use of commodity (meats in this case) imports weighted exchange rates
 in the analysis. The standard practice in previous international
 agricultural trade studies related to either exchange rate pass-through or
 pricing to market was to use the aggregate trade weighted exchange rates
 usually provided by the Central Bank authorities or sources. Beef and
 poultry import prices indicate partial exchange rate pass-through while
 import prices of pork indicate zero exchange rate pass-through, primarily
 due to gate price policy system applied to pork imports. In terms of
 competitiveness, these results suggest relatively more competitive markets
 among poultry importing firms, somewhat competitive markets among beef
 importing firms, while competitiveness of pork importing firms could not
 be assessed due to existing import policies. 
Journal: Applied Economics 
Pages: 3745-3754 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003705329 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003705329 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3745-3754




Template-Type: ReDIF-Article 1.0
Author-Name: Heiko Hansen 
Author-X-Name-First: Heiko 
Author-X-Name-Last: Hansen 
Author-Name: Ramona Teuber 
Author-X-Name-First: Ramona 
Author-X-Name-Last: Teuber 
Title: Assessing the impacts of EU's common agricultural policy on regional convergence: sub-national evidence from Germany 
Abstract:
  This article assesses the relationship between transfers arising from
 EU's Common Agricultural Policy (CAP) and convergence in both farmers'
 revenues and interpersonal income redistribution using a sample of 26
 regions in the state of Hesse, Germany, over the period 1979 to 2004 and
 1991 to 2004, respectively. We thereby combine the concept of sigma
 convergence with Shorrock's inequality decomposition in order to determine
 the driving forces in distributional dynamics of farmers' revenues.
 Additionally, we apply alternative methodologies to investigate how per
 capita incomes have evolved over time. Explicitly comparing the situations
 with and without transfers, our results indicate that the CAP tends to
 smooth differences in farmers' revenues across regions, but does not
 impede a strong divergence through time. The latter is mainly driven by
 increasing structural differences between the regions, while disparities
 in intensity turn out to be less important. The empirical analysis also
 shows that CAP transfers reduce income inequality within society as a
 whole. However, this impact proved to be negligible in explaining
 distributional dynamics and growth of per capita incomes. 
Journal: Applied Economics 
Pages: 3755-3765 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724395 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724395 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3755-3765




Template-Type: ReDIF-Article 1.0
Author-Name: Heather Dickey 
Author-X-Name-First: Heather 
Author-X-Name-Last: Dickey 
Author-Name: Verity Watson 
Author-X-Name-First: Verity 
Author-X-Name-Last: Watson 
Author-Name: Alexandros Zangelidis 
Author-X-Name-First: Alexandros 
Author-X-Name-Last: Zangelidis 
Title: Is it all about money? An examination of the motives behind moonlighting 
Abstract:
  Multiple-job holding is an important labour market phenomenon. In this
 article, we examine individuals' motives for multiple-job holding.
 Specifically, we estimate an empirical model of the motivation for
 moonlighting assuming that individuals hold a second job for either
 financial or for nonpecuniary motives. Our results contribute to a better
 understanding of multiple-job holding. We find that multiple-job holding
 is used by individuals as a way to deal with the financial difficulties or
 the increased financial commitments in their household. Individuals are
 more likely to moonlight for money in the early stages of their adult
 life. Finally, individuals with more labour market experience are more
 likely to moonlight for pecuniary than nonpecuniary reasons. 
Journal: Applied Economics 
Pages: 3767-3774 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724403 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724403 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3767-3774




Template-Type: ReDIF-Article 1.0
Author-Name: Stefanie Haller 
Author-X-Name-First: Stefanie 
Author-X-Name-Last: Haller 
Author-Name: Iulia Siedschlag 
Author-X-Name-First: Iulia 
Author-X-Name-Last: Siedschlag 
Title: Determinants of ICT adoption: evidence from firm-level data 
Abstract:
  We analyse factors driving inter- and intra-firm diffusion of Information
 and Communication Technologies (ICT) using data from Irish manufacturing
 firms over the period 2001 to 2004. We find that the path of ICT diffusion
 has been uneven across firms, industries and space, which is consistent
 with the theory of new technology adoption. Our results suggest that firms
 that are larger, younger, fast growing, skill-intensive, export-intensive
 and firms located in the capital city region have been relatively more
 successful in adopting and using ICT. We find positive technology
 spillovers from firms that have adopted ICT located in the same industry
 and region. 
Journal: Applied Economics 
Pages: 3775-3788 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724411 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724411 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3775-3788




Template-Type: ReDIF-Article 1.0
Author-Name: Olga Isengildina-Massa 
Author-X-Name-First: Olga 
Author-X-Name-Last: Isengildina-Massa 
Author-Name: Scott Irwin 
Author-X-Name-First: Scott 
Author-X-Name-Last: Irwin 
Author-Name: Darrel Good 
Author-X-Name-First: Darrel 
Author-X-Name-Last: Good 
Author-Name: Luca Massa 
Author-X-Name-First: Luca 
Author-X-Name-Last: Massa 
Title: Empirical confidence intervals for USDA commodity price forecasts 
Abstract:
  Conventional procedures for calculating confidence limits of forecasts
 generated by statistical models provide little guidance for forecasts
 based on a combination or a consensus process rather than formal models,
 as is the case with US Department of Agriculture (USDA) forecasts. This
 study applied and compared several procedures for calculating empirical
 confidence intervals for USDA forecasts of corn, soybean and wheat prices
 over the 1980/81 through 2006/07 marketing years. Alternative procedures
 were compared based on out-of-sample performance over 1995/96 through
 2006/07. The results of this study demonstrate that kernel density,
 quantile distribution and best fitting parametric distribution (logistic)
 methods provided confidence intervals calibrated at the 80% level prior to
 harvest and 90% level after harvest. The kernel density-based method
 appears most accurate both before and after harvest with the final value
 falling inside the forecast interval 77% of the time before harvest and
 92% after harvest, followed by quantile regression (73% and 91% before and
 after harvest, respectively) logistic distribution (73% and 90% before and
 after harvest, respectively) and histogram (66% and 84% before and after
 harvest, respectively). Overall, this study demonstrates that empirical
 approaches may be used to construct more accurate confidence intervals for
 USDA corn, soybean and wheat price forecasts. 
Journal: Applied Economics 
Pages: 3789-3803 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724429 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724429 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3789-3803




Template-Type: ReDIF-Article 1.0
Author-Name: Kelvin Balcombe 
Author-X-Name-First: Kelvin 
Author-X-Name-Last: Balcombe 
Author-Name: Iain Fraser 
Author-X-Name-First: Iain 
Author-X-Name-Last: Fraser 
Author-Name: Abhijit Sharma 
Author-X-Name-First: Abhijit 
Author-X-Name-Last: Sharma 
Title: Bayesian model averaging and identification of structural breaks in time series 
Abstract:
  Bayesian Model Averaging (BMA) is used for testing for multiple break
 points in univariate series using conjugate normal-gamma priors. This
 approach can test for the number of structural breaks and produce
 posterior probabilities for a break at each point in time. Results are
 averaged over specifications including: stationary; stationary around
 trend and unit root models, each containing different types and number of
 breaks and different lag lengths. The procedures are used to test for
 structural breaks on 14 annual macroeconomic series and 11 natural
 resource price series. The results indicate that there are structural
 breaks in all of the natural resource series and most of the macroeconomic
 series. Many of the series had multiple breaks. Our findings regarding the
 existence of unit roots, having allowed for structural breaks in the data,
 are largely consistent with previous work. 
Journal: Applied Economics 
Pages: 3805-3818 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724445 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724445 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3805-3818




Template-Type: ReDIF-Article 1.0
Author-Name: Monojit Chatterji 
Author-X-Name-First: Monojit 
Author-X-Name-Last: Chatterji 
Author-Name: Karen Mumford 
Author-X-Name-First: Karen 
Author-X-Name-Last: Mumford 
Author-Name: Peter Smith 
Author-X-Name-First: Peter 
Author-X-Name-Last: Smith 
Title: The public-private sector gender wage differential in Britain: evidence from matched employee-workplace data 
Abstract:
  This article shows that little of the gender earnings gap in the public
 and private sectors in Britain are explained by differences in employee
 characteristics. The differences in workplace characteristics, however,
 make a significant, sizeable contribution. It is shown that performance
 related pay and company pension schemes are associated with higher
 relative earnings in the private sector, whilst increased provision of
 family-friendly employment practices in the public sector is associated
 with higher relative earnings for women. 
Journal: Applied Economics 
Pages: 3819-3833 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724452 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724452 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3819-3833




Template-Type: ReDIF-Article 1.0
Author-Name: Yosef Bonaparte 
Author-X-Name-First: Yosef 
Author-X-Name-Last: Bonaparte 
Author-Name: Frank Fabozzi 
Author-X-Name-First: Frank 
Author-X-Name-Last: Fabozzi 
Title: Household search choice: theory and evidence 
Abstract:
  Since the work by Stigler (1961) on the economics of information in the
 early 1960s, economists have paid closer attention to the role of search
 for information. However, search methods are not considered in the theory
 of portfolio choice. We present a model of investor search behaviour in
 order to provide a framework by which to evaluate our empirical evidence
 on the role of search in portfolio selection and performance. We study two
 types of search methods: informal and professional. We show that the
 income, wealth and risk preference of households influence their search
 choice. 
Journal: Applied Economics 
Pages: 3835-3847 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724460 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724460 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3835-3847




Template-Type: ReDIF-Article 1.0
Author-Name: Almuhanad Melhim 
Author-X-Name-First: Almuhanad 
Author-X-Name-Last: Melhim 
Author-Name: C. Richard Shumway 
Author-X-Name-First: C. Richard 
Author-X-Name-Last: Shumway 
Title: Enterprise diversification in US dairy: impact of risk preferences on scale and scope economies 
Abstract:
  Enterprise diversification has recently become a prominent feature of US
 dairy farms. Scope economies and risk aversion are two forces that
 simultaneously determine diversification. We jointly estimate scope
 economies and determine risk preferences under price uncertainty. We
 reject risk neutrality in favour of Increasing Absolute Risk Aversion
 (IARA) and Increasing Relative Risk Aversion (IRRA). Scope economies are
 significant, but diminish with farm size. Increasing returns to scale
 exist in the production of multiple enterprises and diminish with size.
 Large farms operate under decreasing returns to scale. Ignoring risk
 preferences, a common practice in empirical work, results in an
 underestimate of the effect of scope economies for large farms. 
Journal: Applied Economics 
Pages: 3849-3862 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724478 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724478 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3849-3862




Template-Type: ReDIF-Article 1.0
Author-Name: Samiran Banerjee 
Author-X-Name-First: Samiran 
Author-X-Name-Last: Banerjee 
Author-Name: James Murphy 
Author-X-Name-First: James 
Author-X-Name-Last: Murphy 
Title: Do rational demand functions differ from irrational ones? Evidence from an induced budget experiment 
Abstract:
  Various studies (e.g. Becker, 1962; Ariely et&#xa0;al., 2003) have noted
 anomalies concerning the relationship between observed demand and the
 preferences presumed to motivate it. We re-examine these findings using
 experimental choice data. After separating our subjects' choices into
 rational and irrational subsets based on consistency with the axioms of
 revealed preference, we estimate and compare demand coefficients.
 Mirroring Ariely et&#xa0;al.'s 'coherently arbitrary' choice, both
 rational and irrational demand estimates exhibit negative price and
 positive endowment coefficients. However, a comparison of the full set of
 demand coefficients indicates significant differences between the two,
 yielding an observable artefact of the preference hypothesis. Relaxing the
 goodness-of-fit of the revealed preference test (Afriat, 1987; Varian,
 1994) does not alter our findings. 
Journal: Applied Economics 
Pages: 3863-3882 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003724486 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724486 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3863-3882




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Ford 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Ford 
Author-Name: Bruce Elmslie 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Elmslie 
Title: Scale effects found! 
Abstract:
  A key feature of early endogenous growth models is their prediction of
 scale effects - the larger the economy, as measured by population, the
 number of firms or employment, the faster the economy should grow.
 However, empirical work has failed to support the existence of scale
 effects. As a result, much human capital has been expended in order to
 'fix' this problem by eliminating scale effects in endogenous growth
 models. We contend that econometric techniques used in the empirical
 search for scale effects are inconsistent with growth theory. Using data
 from US states and an econometric technique that better matches growth
 theory by allowing each economy to have its own steady state, we provide
 empirical support for the existence of scale effects. Results call into
 question the need to reformulate the first models of endogenous growth. 
Journal: Applied Economics 
Pages: 3883-3890 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742553 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742553 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3883-3890




Template-Type: ReDIF-Article 1.0
Author-Name: Ender Su 
Author-X-Name-First: Ender 
Author-X-Name-Last: Su 
Author-Name: John Bilson 
Author-X-Name-First: John 
Author-X-Name-Last: Bilson 
Title: Trading asymmetric trend and volatility by leverage trend GARCH in Taiwan stock index 
Abstract:
  This article develops a leverage trend Generalized Autoregressive
 Conditional Heteroscedasticity (GARCH) model by incorporating asymmetric
 trend of returns of the exponential autoregressive and asymmetric
 volatility of GARCH models to study the asymmetric effects. Using
 in-sample daily data of Taiex over the period 4 January 1980 to 25 August
 1997 and postsample daily data over the period 26 August 1997 to 10
 September 2007, the evidence reveals that a curvaceous risk-return
 relationship and both asymmetric volatility and asymmetric trend of
 returns are significant in Taiex. The episode of asymmetric trend of
 returns is that the positive information creates a higher return trend
 than the negative information of the same amount, while similarly to most
 studies, the evidence of asymmetric volatility appears that the negative
 information makes a higher volatility than the positive information of the
 same size. Most remarkably, we evidence that the volatility asymmetry
 effect is a conservative trading factor and the return trend asymmetry
 effect is an active trading factor. In comparison of post-sample
 performance using rolling-window technique, the leverage trend GARCH model
 indeed outperforms the other three models with single asymmetry adjusted
 or without asymmetry adjusted, while the asymmetry nonadjusted model
 performs the worst. It implies that the return trend asymmetry (active
 trading) and the volatility asymmetry effects (conservative trading) tend
 to compensate, but not offset each other. 
Journal: Applied Economics 
Pages: 3891-3905 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742561 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3891-3905




Template-Type: ReDIF-Article 1.0
Author-Name: Dolores Jimenez Rubio 
Author-X-Name-First: Dolores Jimenez 
Author-X-Name-Last: Rubio 
Title: The impact of decentralization of health services on health outcomes: evidence from Canada 
Abstract:
  This article contributes to the limited empirical literature on the
 impact of decentralization on economic welfare by investigating the
 hypothesis that shifts towards more fiscal decentralization in health
 services would be accompanied by improvements in population health.
 Building on a conventional public finance model applied to health care,
 this hypothesis is tested on a panel data of the highly decentralized
 Canadian provinces during the period 1979 to 1995. The results of the
 exploratory empirical analysis presented in this article suggest that
 fiscal decentralization of health services in Canada has had a positive
 and substantial influence on the effectiveness of public policy in
 improving a population's health over the period studied. 
Journal: Applied Economics 
Pages: 3907-3917 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742579 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742579 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3907-3917




Template-Type: ReDIF-Article 1.0
Author-Name: Mario Mazzocchi 
Author-X-Name-First: Mario 
Author-X-Name-Last: Mazzocchi 
Author-Name: W. Bruce Traill 
Author-X-Name-First: W. Bruce 
Author-X-Name-Last: Traill 
Title: Calories, obesity and health in OECD countries 
Abstract:
  Theoretical models suggest that decisions about diet, weight and health
 status are endogenous within a utility maximization framework. In this
 article, we model these behavioural relationships in a fixed-effect panel
 setting using a simultaneous equation system, with a view to determining
 whether economic variables can explain the trends in calorie consumption,
 obesity and health in Organization for Economic Cooperation and
 Development (OECD) countries and the large differences among the
 countries. The empirical model shows that progress in medical treatment
 and health expenditure mitigates mortality from diet-related diseases,
 despite rising obesity rates. While the model accounts for endogeneity and
 serial correlation, results are affected by data limitations. 
Journal: Applied Economics 
Pages: 3919-3929 
Issue: 26 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742587 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742587 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3919-3929




Template-Type: ReDIF-Article 1.0
Author-Name: Shandre Thangavelu 
Author-X-Name-First: Shandre 
Author-X-Name-Last: Thangavelu 
Author-Name: Aekapol Chongvilaivan 
Author-X-Name-First: Aekapol 
Author-X-Name-Last: Chongvilaivan 
Title: The impact of material and service outsourcing on employment in Thailand's manufacturing industries 
Abstract:
  With increasing emphasis on the importance of outsourcing, the 'fear of
 job losses' has been of significant interest, not only in the developed
 countries, but also in the developing countries. In this article, we
 empirically investigate the impacts of intermediate inputs (material) and
 services outsourcing on the relative demands for skilled and unskilled
 labour in Thailand's manufacturing sectors from 1999 to 2003. Based on the
 aggregation of establishment-level data at 4-digit industrial
 classification, we find that both intermediate inputs and service
 outsourcing are relatively skill-biased. Further, our results show that
 intermediate inputs outsourcing has negative impacts on the relative
 demands for skilled and unskilled workers, whereas service outsourcing
 shifts the demand towards skilled workers at the expense of unskilled
 workers. 
Journal: Applied Economics 
Pages: 3931-3944 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742595 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742595 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3931-3944




Template-Type: ReDIF-Article 1.0
Author-Name: John Bitzan 
Author-X-Name-First: John 
Author-X-Name-Last: Bitzan 
Author-Name: Theodore Keeler 
Author-X-Name-First: Theodore 
Author-X-Name-Last: Keeler 
Title: Intermodal traffic, regulatory change and carbon energy conservation in US freight transport 
Abstract:
  Conserving transport carbon emissions is an important policy goal.
 Conventional wisdom often holds that conservation is best achieved by
 increased regulation, and that such gains are best achieved in passenger
 auto transport (fuel efficiency standards or diversion to transit). We
 argue that the growth of rail freight has conserved carbon fuel use in the
 United States, and that fuel-saving changes have been facilitated by
 reduced regulation since 1980. Methods used include estimation of translog
 cost functions (and related demand functions for fuel) for intermodal rail
 and for truck, allowing controlled comparisons of modal fuel use. We find
 intermodal rail (e.g. trailer on flatcar) to be a powerful conserver: if
 intermodal rail were eliminated, and traffic transferred to
 over-the-highway truck, extra annual carbon emissions would be nearly 25
 Tg. By comparison, if urban passenger transit were eliminated and replaced
 by autos (according to one study) the extra annual emissions would be only
 3.9 Tg. 
Journal: Applied Economics 
Pages: 3945-3963 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742603 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742603 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3945-3963




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Brown 
Author-X-Name-First: Richard 
Author-X-Name-Last: Brown 
Author-Name: Gareth Leeves 
Author-X-Name-First: Gareth 
Author-X-Name-Last: Leeves 
Title: Comparative effects of migrants' remittances on composition of recipient household income in two small, island economies 
Abstract:
  We use unique household survey data from Fiji and Tonga to estimate and
 compare the combined impact of migration and remittances on the
 composition of household income. A two-step methodology is followed
 employing a migration prediction model followed by the estimation of a
 Three Stage Least Squares (3SLS) remittances and income equation system.
 We find that remittances contribute to growth in productive capital and
 entrepreneurial activity in the longer-established migrant economy, but
 have yet to impact on business activity in the more recently
 remittances-oriented economy, despite it having a more developed, market
 economy. In the latter case, remittances seem more linked to supporting
 consumption through supplementing low wage income. These findings suggest
 that the duration and intensity of remittance-driven migration, and the
 structure of economic activity within a community are important in
 understanding the influences of migration and remittances on household
 resource allocation and production decisions. 
Journal: Applied Economics 
Pages: 3965-3976 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742611 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742611 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3965-3976




Template-Type: ReDIF-Article 1.0
Author-Name: Nils Braakmann 
Author-X-Name-First: Nils 
Author-X-Name-Last: Braakmann 
Author-Name: Joachim Wagner 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Wagner 
Title: Product diversification and stability of employment and sales: first evidence from German manufacturing firms 
Abstract:
  In this study, we use a unique rich newly built data set for German
 manufacturing enterprises to investigate the relationship between product
 diversification and the stability of sales and employment. We find that
 contrary to portfolio theoretic considerations, more diversified firms
 exhibit a higher variability of sales and employment. However, the effects
 are negligibly small from an economics point of view. 
Journal: Applied Economics 
Pages: 3977-3985 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742629 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742629 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3977-3985




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Grisolia 
Author-X-Name-First: Jose 
Author-X-Name-Last: Grisolia 
Author-Name: K. G. Willis 
Author-X-Name-First: K. G. 
Author-X-Name-Last: Willis 
Title: An evening at the theatre: using choice experiments to model preferences for theatres and theatrical productions 
Abstract:
  This article examines people's preferences and demand for live theatre.
 It investigates the preferences for people attending a regional theatre,
 Northern Stage in Newcastle, in relation to other live theatres they could
 attend, and in relation to the attributes of theatrical productions and
 ticket price. It uses a Stated Preference (SP), discrete choice
 experiment, to assess people's utility and Willingness To Pay (WTP) for
 the different attributes of theatrical productions. The model assesses the
 effect of the attributes of plays on choice; and the impact of
 Socio-Economic (SE) and demographic variables on choice and demand.
 Results reveal the heterogeneity of theatregoers' tastes for different
 types of plays and ticket prices. The models reveal the significance of
 'reviews' and 'Word Of Mouth' (WOM) opinions on plays, as the most
 important variables determining choice. 
Journal: Applied Economics 
Pages: 3987-3998 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003742637 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742637 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3987-3998




Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Ochsen 
Author-X-Name-First: Carsten 
Author-X-Name-Last: Ochsen 
Author-Name: Heinz Welsch 
Author-X-Name-First: Heinz 
Author-X-Name-Last: Welsch 
Title: The social costs of unemployment: accounting for unemployment duration 
Abstract:
  This article contributes to the literature on unemployment and well-being
 by investigating the linkage between personal life satisfaction and a
 macroeconomic indicator of the duration of unemployment. Using data for
 more than 50 000 individuals in 10 European countries, 1992-2002, we find
 that the social costs of unemployment, in terms of general unemployment's
 impact on life satisfaction, relate significantly and to a considerable
 extent to unemployment duration. It is thus not just the risk of becoming
 or staying unemployed that people worry about, but especially the prospect
 of staying long-term unemployed. This fear affects employed and unemployed
 people alike. Our findings provide a strong point for focusing labour
 market policies on long-term unemployment, in addition to considerations
 of human capital depreciation. 
Journal: Applied Economics 
Pages: 3999-4005 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003761900 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003761900 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3999-4005




Template-Type: ReDIF-Article 1.0
Author-Name: James Carroll 
Author-X-Name-First: James 
Author-X-Name-Last: Carroll 
Author-Name: Carol Newman 
Author-X-Name-First: Carol 
Author-X-Name-Last: Newman 
Author-Name: Fiona Thorne 
Author-X-Name-First: Fiona 
Author-X-Name-Last: Thorne 
Title: A comparison of stochastic frontier approaches for estimating technical inefficiency and total factor productivity 
Abstract:
  This article compares standard stochastic frontier models for panel data
 with a number of recently developed models which attempt to control for
 unobserved heterogeneity in the inefficiency component. Results are used
 to construct a generalized Malmquist Total Factor Productivity (TFP) index
 for the Irish tillage sector. While our application yields similar general
 TFP trends across models, it is evident that this new class of model leads
 to fewer theoretical inconsistencies in the production frontier.
 Furthermore, inefficiency estimates across models are critically compared
 and the potential benefits of controlling for unobserved heterogeneity are
 highlighted. 
Journal: Applied Economics 
Pages: 4007-4019 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003761918 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003761918 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4007-4019




Template-Type: ReDIF-Article 1.0
Author-Name: John Gibson 
Author-X-Name-First: John 
Author-X-Name-Last: Gibson 
Author-Name: Scott Rozelle 
Author-X-Name-First: Scott 
Author-X-Name-Last: Rozelle 
Title: The effects of price on household demand for food and calories in poor countries: are our databases giving reliable estimates? 
Abstract:
  Food price policy relies heavily on estimated price elasticities of food
 demand to help balance the nutritional and economic objectives in poor
 countries. Economists use either unit values (ratios of household
 expenditure to quantity purchased) or community prices (enumerated from
 vendors in local markets) as proxies for market prices when estimating
 price elasticities with household survey data. Biases are believed to
 result from using unit values, due to measurement error and quality
 effects, but evidence on this issue is lacking and even less is known
 about community prices. This article provides an empirical evidence from
 Vietnam, which suggests that economists should exercise caution when
 estimating price elasticities from household surveys. A 14-food demand
 system is estimated alternatively with unit values or community prices,
 and the elasticity of calories with respect to rice prices is calculated.
 This elasticity is more than twice as large (-0.54 versus -0.22) when
 community prices are used rather than unit values. Hence, conclusions
 about the nutritional effects of rice price increases appear sensitive to
 data choices made by economists. More generally, this discrepancy suggests
 that the household survey databases commonly used by economists may not
 provide reliable estimates. 
Journal: Applied Economics 
Pages: 4021-4031 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003781478 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003781478 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4021-4031




Template-Type: ReDIF-Article 1.0
Author-Name: George Ford 
Author-X-Name-First: George 
Author-X-Name-Last: Ford 
Title: An investigation into the relationship of retail gas prices on oil company profitability 
Abstract:
  In this article, we present several empirical procedures using publicly
 available data from the US Department of Energy (DOE), and the Securities
 and Exchange Commission (SEC) to examine the relationship of oil company
 gross profit margins to retail gas prices. This descriptive analysis
 indicates that the profit margins of the major integrated oil companies
 are lower, on average, during periods of extremely high gas and oil prices
 (and, in fact, are even lower than in times of extremely low gas and oil
 prices). Large oil companies are most profitable during periods of
 moderate gasoline prices. Smaller, vertically integrated oil companies and
 firms, primarily in the business of refining purchased crude oil, exhibit
 a consistently inverse relationship between profit margins and retail gas
 prices - as gas prices increase, these firms become less profitable. We
 find no evidence for the increase in the gross profit margins of oil
 companies during episodes of very high retail gasoline prices. 
Journal: Applied Economics 
Pages: 4033-4041 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003781486 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003781486 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4033-4041




Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Baglioni 
Author-X-Name-First: Angelo 
Author-X-Name-Last: Baglioni 
Title: Shareholders' agreements and voting power: evidence from Italian listed firms 
Abstract:
  This work provides an empirical investigation of shareholders' agreements
 signed in Italy over the past decade. The evidence shows that agreements
 produce a remarkable reshuffling of voting power (Shapley value) among
 participants. In particular, the first owner gains much voting power at
 low levels of ownership concentration, and his gain is decreasing in his
 ownership stake; the opposite happens for the other participants. In
 addition, the likelihood that a supermajority rule is included in an
 agreement contract is increasing in the first owner's share of equity.
 These findings are consistent with the hypothesis that agreements are used
 to correct situations where the first owner's power is at one of the two
 extremes: either too low (leading to insufficient monitoring over managers
 and gridlocks in decision-making) or too high (enabling him to extract
 large private benefits of control). 
Journal: Applied Economics 
Pages: 4043-4052 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003781494 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003781494 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4043-4052




Template-Type: ReDIF-Article 1.0
Author-Name: John Gibson 
Author-X-Name-First: John 
Author-X-Name-Last: Gibson 
Author-Name: Susan Olivia 
Author-X-Name-First: Susan 
Author-X-Name-Last: Olivia 
Author-Name: Scott Rozelle 
Author-X-Name-First: Scott 
Author-X-Name-Last: Rozelle 
Title: How widespread are nonlinear crowding out effects? The response of private transfers to income in four developing countries 
Abstract:
  This article investigates the relationship between household income and
 private transfers received in developing countries. If private transfers
 are unresponsive to household income, there is less likelihood of
 expansions in public social security crowding out private transfers. Most
 literature finds that private transfers are unresponsive, but this may be
 because responses have been obscured by the methods that ignore
 nonlinearities. Threshold regression techniques find such nonlinearity in
 the Philippines and scope for serious crowding out, with 30-80% of private
 transfers potentially displaced for low-income households (Cox
 et&#xa0;al., 2004). To see if these nonlinear effects occur more widely,
 semiparametric and threshold regression methods are used to model private
 transfers in four developing countries - China, Indonesia, Papua New
 Guinea and Vietnam. The results reported in this article suggest that
 nonlinear crowding out effects are not important features of transfer
 behaviour in these countries. The transfer derivatives under a variety of
 assumptions only range between 0 and -0.08. 
Journal: Applied Economics 
Pages: 4053-4068 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003800831 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003800831 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4053-4068




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Matallin-Saez 
Author-X-Name-First: Juan Carlos 
Author-X-Name-Last: Matallin-Saez 
Title: On causality in the size-efficiency relationship: the effect of investor cash flows on the mutual fund industry 
Abstract:
  One of the perceived advantages in mutual fund management is the presence
 of economies of scale resulting from fund size. This article analyses the
 impact of mutual fund cash flows on the relation between size and
 performance, demonstrating that performance determines asymmetric
 variations in fund assets, particularly in mutual equity funds. Therefore,
 the more efficient funds generate broad enough cash flow entry that
 increases the relative size of the fund, leading to an implicit and
 positive relation between size and performance. So, if the average size
 over the period sample is used as a measure of size, such a relation would
 be biased. When the initial size is used, this bias is avoided and, in
 general, an insignificant relation is found between size and performance.
 These results are controlled by mutual fund costs using gross returns to
 estimate performance. The evidence is robust, and shows only weak evidence
 of a negative relation between size and performance for the balanced funds
 that is driven by a low positive relation between costs and size;
 precisely, the contrary that is expected from the hypothesis of the
 presence of economies of scale. 
Journal: Applied Economics 
Pages: 4069-4079 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003800849 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003800849 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4069-4079




Template-Type: ReDIF-Article 1.0
Author-Name: Jenifer Piesse 
Author-X-Name-First: Jenifer 
Author-X-Name-Last: Piesse 
Author-Name: David Schimmelpfennig 
Author-X-Name-First: David 
Author-X-Name-Last: Schimmelpfennig 
Author-Name: Colin Thirtle 
Author-X-Name-First: Colin 
Author-X-Name-Last: Thirtle 
Title: An error correction model of induced innovation in UK agriculture 
Abstract:
  Cointegration techniques are applied to a model of induced innovation
 based on the two-stage Constant Elasticity of Substitution (CES)
 production function. This approach results in direct tests of the
 inducement hypothesis, which are applied to agricultural data for the
 United Kingdom from 1953 to 2000. The time series properties of the
 variables are checked, cointegration is established and an Error
 Correction Model (ECM) constructed, which attempts to separate factor
 substitution from technological change. Finally, the ECM formulation is
 subjected to causality tests, which show that the factor price ratio for
 chemicals and land is Granger-prior to the factor-saving bias of
 technological change. However, long-run relative prices are not causally
 prior to the machinery/labour ratio. This results from perturbations in
 the user cost of machinery, caused by oil price shocks. Thus, the Induced
 Innovation Hypothesis (IIH) may explain long-run transformations like the
 mechanical and fertilizer revolutions that dominated the twentieth
 century, but not reflect short-run price volatility. 
Journal: Applied Economics 
Pages: 4081-4094 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036841003800856 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003800856 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4081-4094




Template-Type: ReDIF-Article 1.0
Author-Name: Zahoor Ul Haq 
Author-X-Name-First: Zahoor Ul 
Author-X-Name-Last: Haq 
Author-Name: Karl Meilke 
Author-X-Name-First: Karl 
Author-X-Name-Last: Meilke 
Title: Does the Linder effect hold for differentiated agri-food and beverage product trade? 
Abstract:
  Using a generalized gravity equation, this study tests for the Linder
 effect in differentiated agri-food product trade, i.e. as the demand
 structures of two countries become more similar, their trade intensity
 increases. Two proxies of demand structure, the Balassa index and the
 absolute value of the difference in per capita Gross Domestic Products
 (GDPs) of trading partners, are used to capture the Linder effect. In
 addition, two measures of bilateral trade, the Grubel and Lloyd (GL)
 index, and the value of bilateral trade are used as the dependent
 variable. This study investigates the role of the Linder effect in
 explaining the trade of 37 differentiated agri-food and beverage products
 categorized into eight product groups: cereals, fresh fish, frozen fish,
 vegetables, fresh fruit, processed fruit, tea and coffee and alcoholic
 beverages. The data covers trade across 52 developed and developing
 countries from 1990 to 2000. The type of proxy used for the Linder effect
 and the way in which bilateral trade is measured influence the outcome of
 the statistical tests for the Linder effect. The Linder effect for
 cereals, frozen fish, vegetables, processed fruits and tea and coffee,
 using the value of trade as the dependent variable, is often accepted, but
 it is generally rejected when the GL index is used as the measure of trade
 intensity. In brief, the results do not provide strong support for the
 Linder effect in the trade of differentiated agri-food products. 
Journal: Applied Economics 
Pages: 4095-4109 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.484000 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.484000 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4095-4109




Template-Type: ReDIF-Article 1.0
Author-Name: Igor Velickovski 
Author-X-Name-First: Igor 
Author-X-Name-Last: Velickovski 
Author-Name: Geoffrey Thomas Pugh 
Author-X-Name-First: Geoffrey Thomas 
Author-X-Name-Last: Pugh 
Title: Constraints on exchange rate flexibility in transition economies: a meta-regression analysis of exchange rate pass-through 
Abstract:
  This article uses Meta-Regression Analysis (MRA) to investigate exchange
 rate pass-through to domestic prices, highlighting differences between
 transition and developed economies. A total of 23 studies yielded 575
 coefficients measuring exchange rate pass-through to import prices and
 consumer prices for 23 developed and 12 transition economies. The MRA
 results confirm the finding of many particular analyses that exchange rate
 pass-through is less than complete. In addition, exchange rate
 pass-through is higher to import prices than to consumer prices; and
 exchange rate pass-through is higher in the long run than in the short
 run. Regarding transition and developed economies, MRA suggests that there
 is no statistically significant difference in exchange rate pass-through
 to import prices. Yet, exchange rate pass-through to consumer prices is
 significantly and substantially higher in transition than in developed
 economies. This finding is consistent with the caution of many monetary
 authorities in transition economies regarding exchange rate flexibility. 
Journal: Applied Economics 
Pages: 4111-4125 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.485927 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.485927 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4111-4125




Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Ochsen 
Author-X-Name-First: Carsten 
Author-X-Name-Last: Ochsen 
Title: Recommendation, class repeating, and children's ability: German school tracking experiences 
Abstract:
  While the 2006 Progress in International Reading Literacy Study (PIRLS)
 assesses the average ability of German primary school students as being
 higher than average, the Programme for International Student Assessment
 (PISA) studies (OECD, 2000, 2003, 2006) ranks German secondary school
 students at a considerably lower level. This article examines whether a
 teacher's recommendation for the secondary school track and class
 repeating are causes for these ability differences. According to the
 estimates, failures as a result of teachers' recommendations given at the
 end of primary school are an important reason for the differences between
 the two types of studies. Being required to repeat a school class
 amplifies the inefficient management of children's abilities. 
Journal: Applied Economics 
Pages: 4127-4133 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.485929 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.485929 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4127-4133




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Aizenman 
Author-X-Name-First: Joshua 
Author-X-Name-Last: Aizenman 
Author-Name: Kenneth Kletzer 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Kletzer 
Title: The life cycle of scholars and papers in economics - the 'citation death tax' 
Abstract:
  The information content of academic citations is a subject to debate.
 This article views premature death as a tragic 'natural experiment',
 outlining a methodology identifying the 'citation death tax' - the impact
 of the death of productive economists on the patterns of their citations.
 We rely on a sample of 428 papers written by 16 well-known economists who
 died well before retirement, during the period 1975 to 1997. The news is
 mixed: for half of the sample, we identify a large and significant
 'citation death tax' for the average paper written by these scholars. For
 these authors, the estimated average missing citations per paper
 attributed to premature death ranges from 40% to 140% (the overall average
 is about 90%), and the annual costs of lost citations per paper are in the
 range 3-14%. Hence, a paper written 10 years before the author's death
 avoids a citation cost that varies between 30% and 140%. For the other
 half of the sample, there is no citation death tax; and for two Nobel
 Prize-calibre scholars in this second group, Black and Tversky, citations
 took off over time, reflecting the growing recognitions of their seminal
 works. 
Journal: Applied Economics 
Pages: 4135-4148 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.485930 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.485930 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4135-4148




Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Capitanio 
Author-X-Name-First: Fabian 
Author-X-Name-Last: Capitanio 
Author-Name: Maria Bielza Diaz-Caneja 
Author-X-Name-First: Maria Bielza 
Author-X-Name-Last: Diaz-Caneja 
Author-Name: Carlo Cafiero 
Author-X-Name-First: Carlo 
Author-X-Name-Last: Cafiero 
Author-Name: Felice Adinolfi 
Author-X-Name-First: Felice 
Author-X-Name-Last: Adinolfi 
Title: Does market competitiveness significantly affect public intervention in agricultural insurance: the case in Italy 
Abstract:
  Analyses of agricultural insurance failures often assume the existence of
 competitive supply, tracing the reasons for high insurance cost and
 limited farmer participation to informational problems, and suggesting the
 need for premium subsidization in order to increase participation.
 However, in countries such as Spain and Italy, where agricultural
 insurance is most highly subsidized, it could be that supply is not fully
 competitive. In this article, we explore the incidence of public subsidies
 to agricultural insurance premia when supply is noncompetitive. Through
 the use of a simple empirical model of an insurance market, it is shown
 that, while in the case of a competitive supply, subsidies to insurance
 would benefit farmers, a monopolistic supply would capture most of the
 subsidy, thus eliminating the potential incentive towards wider
 participation by farmers. The model is applied to a panel of Italian farms
 for different levels of risk aversion to demonstrate the limited effect
 that a subsidy to a hypothetical all risk yield insurance would have on
 farmer participation in the case of monopolistic supply. 
Journal: Applied Economics 
Pages: 4149-4159 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.487823 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.487823 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4149-4159




Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Jones 
Author-X-Name-First: Melanie 
Author-X-Name-Last: Jones 
Author-Name: Paul Latreille 
Author-X-Name-First: Paul 
Author-X-Name-Last: Latreille 
Title: Disability and self-employment: evidence for the UK 
Abstract:
  This article examines the self-employment decision for disabled and
 nondisabled workers in the UK. Using Labour Force Survey (LFS) data, it is
 found that self-employment may provide an important means by which those
 with work-limiting disabilities can accommodate their impairment. 
Journal: Applied Economics 
Pages: 4161-4178 
Issue: 27 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.489816 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.489816 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4161-4178




Template-Type: ReDIF-Article 1.0
Author-Name: Anne-Laure Delatte 
Author-X-Name-First: Anne-Laure 
Author-X-Name-Last: Delatte 
Author-Name: Julien Fouquau 
Author-X-Name-First: Julien 
Author-X-Name-Last: Fouquau 
Title: The determinants of international reserves in the emerging countries: a nonlinear approach 
Abstract:
  In this article, we adopt a nonlinear approach to examine the dynamics of
 the international reserves holdings by the emerging economies. To do so,
 we estimate the demand for international reserves with a Panel Smooth
 Transition Regression (PSTR) model that loosens two restricting
 hypotheses, homogeneity and time-stability. We find evidence for the
 presence of a nonlinear behaviour in the demand for international
 reserves, a result that is new to the literature. The coefficients are
 found to change smoothly, as a function of two threshold variables - out
 of five candidates tested in total. Our specification accounts for the
 acceleration of foreign exchange reserves accumulation that the linear
 specifications fail to explain. 
Journal: Applied Economics 
Pages: 4179-4192 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.489886 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.489886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4179-4192




Template-Type: ReDIF-Article 1.0
Author-Name: Fousseini Traore 
Author-X-Name-First: Fousseini 
Author-X-Name-Last: Traore 
Title: The impact of the United States subsidies on world cotton price: evidence from ARDL bounds tests 
Abstract:
  This article investigates the impact of the United States subsidies on
 world cotton price in a structural framework. It starts with a
 simultaneous equations model of world cotton market, and then, it focuses
 on the reduced form. Using the Autoregressive Distributed Lag (ARDL)
 bounds tests of Pesaran et&#xa0;al. (2001), no evidence of cointegration
 is found between the underlying variables. This contrasts with results
 found in the classical framework, which highlight a strong evidence of a
 negative impact of subsidies on cotton price, either in the short or long
 run. 
Journal: Applied Economics 
Pages: 4193-4201 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491443 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491443 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4193-4201




Template-Type: ReDIF-Article 1.0
Author-Name: Camilla Andersson 
Author-X-Name-First: Camilla 
Author-X-Name-Last: Andersson 
Author-Name: Erik Holmgren 
Author-X-Name-First: Erik 
Author-X-Name-Last: Holmgren 
Author-Name: James MacGregor 
Author-X-Name-First: James 
Author-X-Name-Last: MacGregor 
Author-Name: Jesper Stage 
Author-X-Name-First: Jesper 
Author-X-Name-Last: Stage 
Title: Formal microlending and adverse (or nonexistent) selection: a case study of shrimp farmers in Bangladesh 
Abstract:
  Microcredit schemes have become a popular means of improving
 smallholders' access to credit and making long term investment possible.
 However, it remains to be explored whether the current microcredit schemes
 are more successful than earlier formal small scale lending in identifying
 successful borrowers. We studied shrimp farming in a rural region in
 Bangladesh where formal microlending is well established, but where more
 expensive informal microlending coexists with the formal schemes. Farmers
 - both those who exclusively use formal loans and those who also use
 informal loans - remain credit-constrained; both types overutilize labour
 in order to reduce the need for working capital. However, the credit
 constraint is actually milder for the informal borrowers: the implicit
 shadow price of working capital is substantially higher in the group that
 only takes formal loans than in the group that also uses informal loans.
 These results suggest that informal lenders - with their closer ties to
 the individual farmers - remain more successful in identifying those
 smallholder farmers that are most likely to use the borrowed funds
 successfully. Informal lenders have an information advantage that formal
 microlenders lack: the latter need to find routes to access this
 information in order for formal microcredit schemes to succeed. 
Journal: Applied Economics 
Pages: 4203-4213 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491444 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4203-4213




Template-Type: ReDIF-Article 1.0
Author-Name: David Black 
Author-X-Name-First: David 
Author-X-Name-Last: Black 
Author-Name: Yi-Ping Tseng 
Author-X-Name-First: Yi-Ping 
Author-X-Name-Last: Tseng 
Author-Name: Roger Wilkins 
Author-X-Name-First: Roger 
Author-X-Name-Last: Wilkins 
Title: Do changes in demographic characteristics explain declining male employment rates? Examination of the Australian case using a propensity score re-weighting decomposition approach 
Abstract:
  Using Australian data spanning the period from 1981 to 2001, we apply a
 propensity score re-weighting decomposition approach to investigate the
 extent to which the large decline in the male employment population rate
 over this period can be attributed to changes in socio-demographic
 characteristics. We find that changes in observed characteristics account
 for little of the aggregate decline. However, changes in characteristics
 are found to be important for population sub groups. In particular,
 changes in partner status and partner employment status have acted to
 decrease employment rates of younger males, but increase employment rates
 of older males. A further finding is that, holding observed
 characteristics constant, there has been a very large decline in the
 employment rate of 55-64-year-olds with bachelor degree qualifications. In
 the course of applying the decomposition method, we illustrate that
 validity of inferences depends on 'appropriate' specification of the
 reweighting function. 
Journal: Applied Economics 
Pages: 4215-4226 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491445 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491445 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4215-4226




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Jesus Such Devesa 
Author-X-Name-First: Maria Jesus Such 
Author-X-Name-Last: Devesa 
Author-Name: Laura Parte Esteban 
Author-X-Name-First: Laura Parte 
Author-X-Name-Last: Esteban 
Title: Spanish hotel industry: indebtedness determinants 
Abstract:
  This article analyses the indebtedness of the companies belonging to the
 Spanish hotel industry. The internationalization process of Spanish hotel
 companies requires a new approach to their financial strategies. The form
 of expansion chosen in this process has an impact on the pace and volume
 of the funds needed for it. Other items are incorporated to observe
 different behaviour among hotel companies in relation with their
 indebtedness process. Among analysed factors, we can observe the
 importance of solvency, liquidity, and asset structure. The hotel
 industry's means to explain individual indebtedness is also relevant,
 demonstrating the fact that firms usually follow the sector's benchmark
 when determining the level of indebtedness. Studies such those of
 Grinblatt and Titman (2003) or Frank and Goyal (2009) confirm this same
 hypothesis. 
Journal: Applied Economics 
Pages: 4227-4238 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491446 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491446 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4227-4238




Template-Type: ReDIF-Article 1.0
Author-Name: John Heywood 
Author-X-Name-First: John 
Author-X-Name-Last: Heywood 
Author-Name: Uwe Jirjahn 
Author-X-Name-First: Uwe 
Author-X-Name-Last: Jirjahn 
Author-Name: Georgi Tsertsvadze 
Author-X-Name-First: Georgi 
Author-X-Name-Last: Tsertsvadze 
Title: Part-time work and the hiring of older workers 
Abstract:
  This research uses German establishment data to examine the relationship
 between back loading compensation, the hiring of older workers and their
 part time status. We confirm that establishments that defer compensation
 are less likely to hire older workers. We demonstrate for the first time
 that establishments that defer compensation are more likely to limit older
 workers to part time jobs, when they do hire them. Thus, deferred
 compensation plays a larger role in reducing the chances of older workers
 being hired into full time jobs than would be inferred from past estimates
 simply examining their odds of being hired at all. 
Journal: Applied Economics 
Pages: 4239-4255 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491447 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491447 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4239-4255




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Delgado 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Delgado 
Author-Name: Maria Jose Presno 
Author-X-Name-First: Maria Jose 
Author-X-Name-Last: Presno 
Title: Convergence of fiscal pressure in the EU: a time series approach 
Abstract:
  The study of fiscal convergence in the EU is a relevant issue in the
 context of economic integration and fiscal harmonization and we report new
 empirical evidence on this topic using a time series approach. We apply
 unit root and stationarity tests with an endogenous break for the study of
 long run, deterministic and stochastic convergence of the national tax
 burden taking Germany, the United Kingdom and the European average as
 benchmarks. Only the United Kingdom and Germany show long run convergence
 and few countries converge despite harmonization efforts and fiscal
 competition. 
Journal: Applied Economics 
Pages: 4257-4267 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491449 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491449 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4257-4267




Template-Type: ReDIF-Article 1.0
Author-Name: Corrado Andini 
Author-X-Name-First: Corrado 
Author-X-Name-Last: Andini 
Title: Financial development and long-run growth: is the cross-sectional evidence robust? 
Abstract:
  In a seminal paper, Levine, Loayza and Beck (LLB, 2000) provide
 cross-sectional evidence showing that financial development has positive
 average impact on long-run growth, using a sample of 71 countries. We
 argue that the evidence is sensitive to the presence of outliers. 
Journal: Applied Economics 
Pages: 4269-4275 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491450 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491450 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4269-4275




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Johnson 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Johnson 
Author-Name: John Formby 
Author-X-Name-First: John 
Author-X-Name-Last: Formby 
Author-Name: Hoseong Kim 
Author-X-Name-First: Hoseong 
Author-X-Name-Last: Kim 
Title: Economic growth and poverty: a tale of two decades 
Abstract:
  The relationship between poverty and economic growth is reexamined using
 pooled cross section and time series estimates of state level poverty.
 Empirical evidence is provided for both cash and comprehensive income
 headcounts and Sen indexes of poverty. Particular emphasis is placed on
 the differential impacts of growth on poverty in the long economic
 expansions of the 1980s and 1990s. Contrary to prior work, we find that
 the long-term effects of growth did not strengthen and may have actually
 diminished during the 1990s. 
Journal: Applied Economics 
Pages: 4277-4288 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491451 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491451 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4277-4288




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Lamla 
Author-X-Name-First: Michael 
Author-X-Name-Last: Lamla 
Author-Name: Sarah Lein 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Lein 
Title: What matters when? The impact of ECB communication on financial market expectations 
Abstract:
  This article analyses financial markets' reaction to European Central
 Bank's (ECB) communication. We apply a novel indicator that quantifies the
 contents of the ECB's introductory statements and allows disentangling ECB
 statements on prices, the real and the monetary sector. We provide
 evidence that it matters what issue the ECB is speaking about: especially,
 the ECB's statements on price developments represent important news to
 financial markets. It also matters when the ECB affects markets:
 communication drives maturities above 4 months. 
Journal: Applied Economics 
Pages: 4289-4309 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491452 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491452 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4289-4309




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Crespo Cuaresma 
Author-X-Name-First: Jesus Crespo 
Author-X-Name-Last: Cuaresma 
Author-Name: Tapas Mishra 
Author-X-Name-First: Tapas 
Author-X-Name-Last: Mishra 
Title: Human capital, age structure and growth fluctuations 
Abstract:
  This article assesses the empirical relationship between per capita
 income growth fluctuations and the age-structured human capital variations
 across four groups of geographically clustered developed and developing
 countries from spatial perspective. We estimate a spatial Vector
 Autoregressive (VAR) model of income dynamics where the distance between
 countries is defined on relational space based on their similarity in
 appropriation tendency of human capital in the production processes. These
 distances are computed using a newly developed human capital data set
 which fully characterizes the demographic structure of human capital, and
 thus underlines the joint relevance of demography and human capital in
 economic growth. Spatial effects on growth interdependence and
 complementarity are then explored with respect to the proposed distance
 metrics. Our results imply that significant cross-country growth
 interdependence based on human capital distances exists among defined
 country groups suggesting the need for a cooperative policy programme
 among them. We also find that the relationship between economic growth and
 human capital is highly nonlinear as a function of the proposed human
 capital distance. 
Journal: Applied Economics 
Pages: 4311-4329 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491453 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491453 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4311-4329




Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Skoufias 
Author-X-Name-First: Emmanuel 
Author-X-Name-Last: Skoufias 
Author-Name: Vincenzo Di Maro 
Author-X-Name-First: Vincenzo 
Author-X-Name-Last: Di Maro 
Author-Name: Teresa Gonzalez-Cossio 
Author-X-Name-First: Teresa 
Author-X-Name-Last: Gonzalez-Cossio 
Author-Name: Sonia Rodriguez Ramirez 
Author-X-Name-First: Sonia Rodriguez 
Author-X-Name-Last: Ramirez 
Title: Food quality, calories and household income 
Abstract:
  We investigate the relationship between calories, food quality and
 household per capita expenditure using regression and semiparametric
 methods on a sample of poor households from rural Mexico, where Programa
 de Apoyo Alimentario (PAL), a targeted nutritional programme, is
 operating. The semiparametric method yields an estimate of the elasticity
 between calories and expenditure of 0.39 below the median and 0.28 above.
 The corresponding estimates of the elasticity of the calorie price are
 0.48 below the median and 0.45 above. We also examine the extent to which
 the expenditure elasticity of the calorie price is explained by
 substitution between and within major food groups. We find that there is a
 very high incidence of substitution within cereals (especially for poor
 households) and that between group substitution explains at most 59% of
 the income elasticity for food quality. These estimates suggest that the
 potential of a cash transfer programme to have a positive impact on the
 food diversity and the nutritional status of households is quite limited. 
Journal: Applied Economics 
Pages: 4331-4342 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491454 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4331-4342




Template-Type: ReDIF-Article 1.0
Author-Name: Miles Finney 
Author-X-Name-First: Miles 
Author-X-Name-Last: Finney 
Author-Name: Mann Yoon 
Author-X-Name-First: Mann 
Author-X-Name-Last: Yoon 
Title: Interdependence in the technology adoption decision among municipalities 
Abstract:
  This study examines the interdependence among municipalities in the
 discrete decision to adopt internet technology. Results from probit
 specifications with interaction effects suggest that cities are influenced
 by nearby neighbours with similar population size in developing a website.
 Evidence is also presented indicating interaction among municipalities in
 the decision to use internet technology to facilitate financial
 transactions. 
Journal: Applied Economics 
Pages: 4343-4352 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491455 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491455 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4343-4352




Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Borland 
Author-X-Name-First: Jeff 
Author-X-Name-Last: Borland 
Author-Name: Yi-Ping Tseng 
Author-X-Name-First: Yi-Ping 
Author-X-Name-Last: Tseng 
Title: Does 'Work for the Dole' work?: an Australian perspective on work experience programmes 
Abstract:
  This study examines the effect of Work for the Dole (WfD), a
 community-based work experience programme, on transitions out of
 unemployment in Australia. To evaluate the WfD programme, a
 quasi-experimental exact matching approach is applied. Participation in
 the WfD programme is found to be associated with a large and significant
 adverse effect on the likelihood of exiting unemployment payments. The
 main potential explanation is the existence of a 'lock-in' effect whereby
 programme participants reduce job search activity. 
Journal: Applied Economics 
Pages: 4353-4368 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491457 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491457 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4353-4368




Template-Type: ReDIF-Article 1.0
Author-Name: Cliff Nowell 
Author-X-Name-First: Cliff 
Author-X-Name-Last: Nowell 
Author-Name: Therese Grijalva 
Author-X-Name-First: Therese 
Author-X-Name-Last: Grijalva 
Title: Trends in co-authorship in economics since 1985 
Abstract:
  It has been often noted (McDowell and Melvin, 1983; Barnett et&#xa0;al.,
 1988; Piette and Ross, 1992; Sutter and Kocher, 2004) that the share of
 co-authored papers in economics has been increasing steadily. The purpose
 of this study is to investigate some of the theories as to why
 co-authorship has been increasing in the economics profession. Using data
 on the publication records of faculty at 129 US colleges and universities
 that offer doctoral degrees in Economics, Poisson and logit regression
 models are estimated to explain co-authorship. Results indicate that the
 likelihood of co-authorship is greater for papers that combine
 quantitative analysis with another field and for papers published in
 higher quality journals. Further, co-authorship appears to differ in the
 many subfields of economics, with the field of Economic History and
 History of Thought (Journal of Economic Literature (JEL) categories N and
 B) to be the least likely to co-author and the fields of Financial
 Economics (JEL category G) and Agricultural and Natural Resource Economics
 (JEL category Q) to be the most prone to co-authorship. 
Journal: Applied Economics 
Pages: 4369-4375 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491458 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491458 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4369-4375




Template-Type: ReDIF-Article 1.0
Author-Name: Carmelo Garcia Perez 
Author-X-Name-First: Carmelo Garcia 
Author-X-Name-Last: Perez 
Author-Name: Mercedes Prieto Alaiz 
Author-X-Name-First: Mercedes Prieto 
Author-X-Name-Last: Alaiz 
Title: Using the Dagum model to explain changes in personal income distribution 
Abstract:
  This article studies the evolution of personal income distribution in
 Spain from 1995 to 2005 using the Dagum model. Dagum's three parameter
 model (type I) provides a good fitting to empirical income distributions
 in Spain. Moreover, its parameters can be interpreted as economic
 indicators of income distribution changes. After studying the economic
 interpretation of the Dagum model parameters, we analyse the impact of
 parameter changes on different income percentiles and also on the
 evolution of inequality in Spain using data from the European Community
 Household Panel (ECHP) and the European Union Statistics on Income and
 Living Conditions (EU-SILC). 
Journal: Applied Economics 
Pages: 4377-4386 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491459 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491459 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4377-4386




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Mohn 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Mohn 
Author-Name: Petter Osmundsen 
Author-X-Name-First: Petter 
Author-X-Name-Last: Osmundsen 
Title: Asymmetry and uncertainty in capital formation: an application to oil investment 
Abstract:
  Theories of irreversible investment suggest a negative relation between
 investment and uncertainty, and nonlinear adjustment costs open for
 asymmetries in the adjustment of fixed capital. We propose an econometric
 modelling approach to estimate and test the key predictions of modern
 investment theory, including asymmetric dynamics and various uncertainty
 indicators. Our application on a data set from the oil industry offers
 empirical support for both asymmetric dynamics and uncertainty in oil and
 gas investment. 
Journal: Applied Economics 
Pages: 4387-4401 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491460 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491460 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4387-4401




Template-Type: ReDIF-Article 1.0
Author-Name: Ragnar Tveteras 
Author-X-Name-First: Ragnar 
Author-X-Name-Last: Tveteras 
Author-Name: Ola Flaten 
Author-X-Name-First: Ola 
Author-X-Name-Last: Flaten 
Author-Name: Gudbrand Lien 
Author-X-Name-First: Gudbrand 
Author-X-Name-Last: Lien 
Title: Production risk in multi-output industries: estimates from Norwegian dairy farms 
Abstract:
  Farmers who produce multiple outputs are portfolio managers in the sense
 that they use inputs to balance expected economic return and variance of
 return. This article estimates the structure of the stochastic multioutput
 production technology in Norwegian dairy farming, allowing for a more
 flexible specification of the technology than previous studies. We find
 that an increase in input levels leads primarily to higher output
 variability, and that inputs also influence the covariance of shocks
 between outputs. Risk reducing effects of inputs on outputs are primarily
 present in the covariance functions. Technical change leads to shifts in
 the profit distribution over the data period, but no welfare improvement
 for risk averse farmers. 
Journal: Applied Economics 
Pages: 4403-4414 
Issue: 28 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491461 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491461 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4403-4414




Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Menkhoff 
Author-X-Name-First: Lukas 
Author-X-Name-Last: Menkhoff 
Title: Are momentum traders different? Implications for the momentum puzzle 
Abstract:
  This article examines the puzzlingly high unexploited momentum returns
 from a new perspective. We analyse characteristics of momentum traders in
 a sample of 692 fund managers. We find that momentum traders are 'defined'
 by their short-term horizon, by a behavioural view on the market and by a
 somewhat lower degree of risk aversion, whereas they are like other fund
 managers with respect to sophistication. This is consistent with the
 interpretation that momentum returns may compensate for the risk of
 momentum trading on short-term horizons and that the short-term oriented
 momentum traders are not in a position to perform long-term arbitrage. 
Journal: Applied Economics 
Pages: 4415-4430 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491462 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4415-4430




Template-Type: ReDIF-Article 1.0
Author-Name: Juan de Dios Tena 
Author-X-Name-First: Juan 
Author-X-Name-Last: de Dios Tena 
Author-Name: Edoardo Otranto 
Author-X-Name-First: Edoardo 
Author-X-Name-Last: Otranto 
Title: A realistic model for official interest rate movements and their consequences 
Abstract:
  This article extends the Vector Autoregression (VAR) methodology to
 examine the consequences of monetary policy decisions by considering two
 types of nonlinearities in the determination of official interest rates:
 (1) the asymmetry related to the different nature of the discrete and
 infrequent positive and negative interest rate movements determined by
 central bankers and (2) the convexity in the transmission of policy shocks
 induced by the nonnegativity constraint in interest rates. For the UK, we
 find some evidence of both types of asymmetries. In the US, responses to
 unexpected interest rate shocks are far more symmetric. Results highlight
 the importance of considering all types of asymmetries when studying
 monetary transmission. 
Journal: Applied Economics 
Pages: 4431-4447 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491463 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491463 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4431-4447




Template-Type: ReDIF-Article 1.0
Author-Name: Dennis Coates 
Author-X-Name-First: Dennis 
Author-X-Name-Last: Coates 
Author-Name: Brad Humphreys 
Author-X-Name-First: Brad 
Author-X-Name-Last: Humphreys 
Title: The effect of professional sports on the earnings of individuals: evidence from microeconomic data 
Abstract:
  This article examines the impact of professional sports franchises in
 labour markets using data from the March Supplement to the Current
 Population Survey (CPS) for workers employed in specific occupational
 groups in all large US cities from 1983 to 2002. Results from a standard
 wage model suggest that professional football franchises increase average
 hourly and weekly earnings of males employed in these occupations, but
 professional baseball franchises reduce them. These results support
 growing evidence that professional sports affect labour markets. However,
 the mixed nature of the association between sport and earnings provides
 little economic justification for government subsidies for professional
 sport. 
Journal: Applied Economics 
Pages: 4449-4459 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491464 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491464 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4449-4459




Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Elliott 
Author-X-Name-First: Caroline 
Author-X-Name-Last: Elliott 
Author-Name: Rob Simmons 
Author-X-Name-First: Rob 
Author-X-Name-Last: Simmons 
Title: Advertising media strategies in the film industry 
Abstract:
  The primary aim of this article is to estimate the multiple determinants
 of film advertising expenditures in four important media, namely
 television, press, outdoor and radio, in the UK. First, television
 advertising, the leading film advertising medium, is examined as part of a
 system of equations, capturing the interdependences between advertising,
 the number of screens on which films are initially shown and box office
 revenues. Then a reduced form model is put forward to reveal the
 determinants of film advertising in the four media. While major
 distribution companies have different preferences for the use of the
 alternative advertising media, results highlight the importance of quality
 signals, such as critical reviews, in determining advertising expenditures
 in the film industry. Moreover, advertising expenditures can themselves be
 considered to offer potential cinema goers signals of film quality. 
Journal: Applied Economics 
Pages: 4461-4468 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491466 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491466 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4461-4468




Template-Type: ReDIF-Article 1.0
Author-Name: Garrick Blalock 
Author-X-Name-First: Garrick 
Author-X-Name-Last: Blalock 
Author-Name: Jed DeVaro 
Author-X-Name-First: Jed 
Author-X-Name-Last: DeVaro 
Author-Name: Stephanie Leventhal 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: Leventhal 
Author-Name: Daniel Simon 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Simon 
Title: Gender bias in power relationships: evidence from police traffic stops 
Abstract:
  We test for the existence of gender bias in power relationships.
 Specifically, we examine whether police officers are less likely to issue
 traffic tickets to men or to women during traffic stops. Whereas the
 conventional wisdom, which we document with surveys, is that women are
 less likely to receive tickets, our analysis shows otherwise. Examination
 of a pooled sample of traffic stops from five locations reveals no gender
 bias, but does show significant regional variation in the likelihood of
 citations. Analysis by location shows that women are more likely to
 receive citations in three of the five locations. Men are more likely to
 receive citations in the other two locations. To our knowledge, this study
 is the first to test for gender bias in traffic stops, and clearly refutes
 the conventional wisdom that police are more lenient towards women. 
Journal: Applied Economics 
Pages: 4469-4485 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491467 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491467 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4469-4485




Template-Type: ReDIF-Article 1.0
Author-Name: Pallab Mozumder 
Author-X-Name-First: Pallab 
Author-X-Name-Last: Mozumder 
Author-Name: Robert Berrens 
Author-X-Name-First: Robert 
Author-X-Name-Last: Berrens 
Title: Social context, financial stakes and hypothetical bias: an induced value referendum experiment 
Abstract:
  This article investigates the effect of social context in an induced
 value, public good referendum experiment. In a split-sample treatment,
 social context is simulated by requiring participants to potentially have
 to disclose their vote to the group (voting disclosure) across both
 hypothetical and real settings. The experimental design also varies the
 cost (a coercive tax), and includes an uncertain level of benefit from the
 public good. The design allows investigation of the role of social context
 in both hypothetical and real referenda and its interaction with changes
 in the financial stakes involved (costs and potential benefits). Results
 show evidence of hypothetical bias, but also a social context effect that
 occurs in both real and hypothetical settings. This social context effect
 is larger than the effect of hypothetical bias, but is muted by the
 magnitude of costs and potential benefits. Hypothetical cases are also
 shown to be more prone to the social context effect. 
Journal: Applied Economics 
Pages: 4487-4499 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491468 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491468 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4487-4499




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Prince 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Prince 
Title: Relating inertia and experience in technology markets: an analysis of households' personal computer choices 
Abstract:
  This article empirically analyses how households' PC purchasing
 behaviours change with market experience. We find that: households
 generally exhibit inertia in their PC purchases, the level of inertia is
 increasing as a function of experience on the PC market, and, for
 households switching brands, the likelihood of buying a lesser-known brand
 increases with experience, regardless of the brand of the previous
 purchase. These findings are consistent with the predictions of a simple
 learning model, and extend our understanding of how market experience
 affects purchasing behaviour to an important technology product, with
 implications that may apply to other similar products. 
Journal: Applied Economics 
Pages: 4501-4514 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491469 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491469 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4501-4514




Template-Type: ReDIF-Article 1.0
Author-Name: Tom Stargardt 
Author-X-Name-First: Tom 
Author-X-Name-Last: Stargardt 
Title: Modelling pharmaceutical price changes in Germany: a function of competition and regulation 
Abstract:
  In this article, price changes for pharmaceuticals in Germany are
 modelled as a function of regulation and competition. Changes in the
 regulatory environment, and in the competitive environment of a product,
 are taken into account. To follow the hierarchical structure, a four-level
 random intercept model was constructed. Price changes were allowed to vary
 randomly between drug classes, between different substances within a drug
 class, and between different manufacturers of a substance. This study
 provides evidence that two policy measures - reference pricing and
 temporary price freezes - succeeded in reducing prices in Germany between
 January 2004 and June 2006. For off-patent substances - depending on the
 competition faced by a drug - the effect of competition can be greater
 than the effect of regulation. The study, therefore, not only demonstrates
 the importance of competition between and within drug classes, it also
 provides evidence that generic entry has substantial effects on the prices
 of branded products. 
Journal: Applied Economics 
Pages: 4515-4526 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491470 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491470 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4515-4526




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Luis Raymond 
Author-X-Name-First: Jose Luis 
Author-X-Name-Last: Raymond 
Author-Name: Jose Luis Roig 
Author-X-Name-First: Jose Luis 
Author-X-Name-Last: Roig 
Title: Intrafirm human capital externalities and selection bias 
Abstract:
  This article investigates the existence of intrafirm human capital
 externalities in the Spanish economy. In doing so, it focusses on two
 estimation issues. First, a semiparametric methodology is used to estimate
 externalities in a more flexible way that allows to affect all parameters
 in the equation. Second, two approaches to control for selection bias are
 designed for use in cross-section data. Our results show a higher
 externality effect on wages when using the semi parametric approach as
 compared to the standard estimation approach. Additionally, the
 estimations even when controlling for selection bias give evidence of
 externalities. 
Journal: Applied Economics 
Pages: 4527-4536 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491471 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491471 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4527-4536




Template-Type: ReDIF-Article 1.0
Author-Name: Esther Del Brio 
Author-X-Name-First: Esther 
Author-X-Name-Last: Del Brio 
Author-Name: Elida Maia-Ramires 
Author-X-Name-First: Elida 
Author-X-Name-Last: Maia-Ramires 
Author-Name: Alberto De Miguel 
Author-X-Name-First: Alberto 
Author-X-Name-Last: De Miguel 
Title: Ownership structure and diversification in a scenario of weak shareholder protection 
Abstract:
  This work examines the influences of ownership concentration and insider
 ownership on corporate strategies for diversification within a scenario
 characterized by poor protection of shareholder interests. We find
 evidence of a quadratic relationship between ownership concentration and
 diversification, and a cubic relationship between diversification and
 insider ownership. These results point towards the high probability of
 both expropriation and entrenchment phenomena, respectively, in this kind
 of scenario. We also find that concentrated ownership requires high levels
 of insider ownership, in order to prevent negative externalities of
 diversification. Another result shows that entrenchment externalities
 affect diversification before they erode firm value, which suggests that
 for low levels of diversification, firm value is still not negatively
 affected. Additionally, our results show that control mechanisms, such as
 debt, director remuneration and compliance with codes of good practice,
 are negatively related to the level of diversification. Overall, our
 results confirm the theoretical relevance of agency theory in explaining
 managerial attitudes towards corporate strategy, i.e. diversification.
 Furthermore, companies characterized by deficiencies in shareholder legal
 protection, concentrated ownership structures and a higher likelihood of
 managers being entrenched, should focus on the correct functioning of
 corporate governance mechanisms. 
Journal: Applied Economics 
Pages: 4537-4547 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491472 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491472 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4537-4547




Template-Type: ReDIF-Article 1.0
Author-Name: Marcella D'Uva 
Author-X-Name-First: Marcella 
Author-X-Name-Last: D'Uva 
Author-Name: Rita De Siano 
Author-X-Name-First: Rita 
Author-X-Name-Last: De Siano 
Title: Time series approaches to Italian regional convergence 
Abstract:
  This article investigates the evolution of the gap between Italian
 regions and Italy as a whole during the period of 1980 to 2007. We tested
 for the presence of the stochastic and &#x3b2;-convergence hypotheses
 using different time series approaches. The former was studied, first, for
 the entire sample period and then, with an exogenous instantaneous break
 in the series. The presence of &#x3b2;-convergence, instead, was estimated
 considering a known and an unknown trend break date model. Our results
 show that most of the regions do not converge in an 'actual' way, since
 they do not present a stochastic and &#x3b2;-convergence simultaneously. 
Journal: Applied Economics 
Pages: 4549-4559 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491473 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491473 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4549-4559




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Eichler 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Eichler 
Author-Name: Dominik Maltritz 
Author-X-Name-First: Dominik 
Author-X-Name-Last: Maltritz 
Title: Currency crises and the stock market: empirical evidence for another type of twin crisis 
Abstract:
  We explore the dependency between currency crises and the stock market in
 emerging economies. Our focus is two-fold. First, the risk of a currency
 crisis rises as the foreign stake in the domestic stock market increases.
 Successful economies with high capital flows into their booming stock
 markets especially are prone to stock market-induced currency crises.
 Second, we apply the dividend growth model to show that stock markets
 crash in the run-up to a currency crisis. This new type of twin crisis is
 empirically tested by employing a logit framework using quarterly data for
 33 emerging economies for 1994Q1-2007Q4. 
Journal: Applied Economics 
Pages: 4561-4587 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491474 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491474 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4561-4587




Template-Type: ReDIF-Article 1.0
Author-Name: Tindara Addabbo 
Author-X-Name-First: Tindara 
Author-X-Name-Last: Addabbo 
Author-Name: Donata Favaro 
Author-X-Name-First: Donata 
Author-X-Name-Last: Favaro 
Title: Gender wage differentials by education in Italy 
Abstract:
  In this article we evaluate wage differentials in Italy combining gender
 and education perspectives. The main goal of this article is to verify
 whether the extent of the gender pay gap varies between highly- and
 low-educated workers, and whether or not the role played by gender
 differences in characteristics and in market rewards is similar in the two
 groups. We apply quantile regression analysis and an adaptation of the
 procedure suggested by Machado and Mata (2005) to evaluate the predicted
 wage gap at different points of the female wage distribution scale. The
 analysis is carried out on the Italian sample of the last available year
 of the European Community Household Panel (ECHP). We show that the extent
 and the trend of the gap predicted across the female distribution is
 sharply different between groups with diverse educational levels. In the
 case of low-educated workers, although the predicted gap is largely
 explained by differences in rewards, lower levels of education or
 experience are responsible for the gap, especially on the right-hand side
 of the distribution. On the contrary, highly-educated females have better
 characteristics than highly-educated men that partially compensate the
 rather high difference in returns, in particular at the extremes of the
 distribution. 
Journal: Applied Economics 
Pages: 4589-4605 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.491475 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491475 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4589-4605




Template-Type: ReDIF-Article 1.0
Author-Name: Lex Borghans 
Author-X-Name-First: Lex 
Author-X-Name-Last: Borghans 
Author-Name: Bas ter Weel 
Author-X-Name-First: Bas 
Author-X-Name-Last: ter Weel 
Title: Computers, skills and wages 
Abstract:
  Computer technology is most prominently used by skilled, high-wage
 workers. This suggests that computer use requires skills to take full
 advantage of the possibilities, which are particularly present among
 relatively skilled workers. This article develops a simple technology
 adoption model showing that the decision to adopt computer technology
 depends on (i) the tasks to be performed, (ii) the level of skill or
 education and (iii) the level of wages. Applying this model to British
 data, it is shown that the effect of wages and particular tasks on
 computer adoption is larger than the effect of skills on adoption. The
 estimates suggest that in Britain computer use is likely to be a matter of
 cost efficiency and not so much of workers' skills. 
Journal: Applied Economics 
Pages: 4607-4622 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.493138 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4607-4622




Template-Type: ReDIF-Article 1.0
Author-Name: Mao-Wei Hung 
Author-X-Name-First: Mao-Wei 
Author-X-Name-Last: Hung 
Author-Name: Jr-Yan Wang 
Author-X-Name-First: Jr-Yan 
Author-X-Name-Last: Wang 
Title: Loss aversion and the term structure of interest rates 
Abstract:
  This article studies how the loss averse behaviour affects the term
 structure of real interest rates. Since the pro-cyclical conditional
 expected marginal rate of substitution, implied from the US consumption
 data, is consistent with the proposition of loss aversion, we incorporate
 the loss averse behaviour of prospect theory into the consumption-based
 asset pricing model. Motivated by the similarity between habit formation
 and the prospect theory utility, habit formation is exploited to determine
 endogenously the reference point of this behavioural finance utility. The
 highly curved characteristic of the term structure of real interest rates
 can thus be captured by the additional consideration of loss aversion.
 This model also fits the downward sloping volatility of the real yield
 curve in the data of US Treasury Inflation-Protection Securities (TIPS).
 Moreover, depending on the effective risk attitude of the representative
 agent with the loss averse behaviour of prospect theory, our model is
 capable of generating a normal or an inverted yield curve. 
Journal: Applied Economics 
Pages: 4623-4640 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.493139 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493139 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4623-4640




Template-Type: ReDIF-Article 1.0
Author-Name: Shandre Thangavelu 
Author-X-Name-First: Shandre 
Author-X-Name-Last: Thangavelu 
Author-Name: Liu Haoming 
Author-X-Name-First: Liu 
Author-X-Name-Last: Haoming 
Author-Name: Park Cheolsung 
Author-X-Name-First: Park 
Author-X-Name-Last: Cheolsung 
Author-Name: Ang Boon Heng 
Author-X-Name-First: Ang Boon 
Author-X-Name-Last: Heng 
Author-Name: James Wong 
Author-X-Name-First: James 
Author-X-Name-Last: Wong 
Title: The determinants of training participation in Singapore 
Abstract:
  This article uses the Singapore Labour Force survey data to examine the
 determinants of workers' participation in training programmes in
 Singapore. The results show that different socio-demographic and
 employment related characteristics affect the training participation of
 workers. Well-educated and better paid workers are much more likely to
 participate in training programmes than others. Age has a positive impact
 on training participation for younger workers (under 37 years), but a
 negative effect on older workers' participation. The results also indicate
 that occupational affiliations have a significant impact on training
 participation. We also find that married workers seem to be less likely to
 participate in training programmes, but the difference between married and
 single is only significant at the 10% level. Finally, gender does not have
 any significant effect at any conventional level although the coefficient
 on the female dummy is positive, suggesting females might be slightly more
 likely to participate in training programmes. 
Journal: Applied Economics 
Pages: 4641-4649 
Issue: 29 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.493140 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493140 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4641-4649




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Perelman 
Author-X-Name-First: Sergio 
Author-X-Name-Last: Perelman 
Author-Name: Daniel Santin 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Santin 
Title: Imposing monotonicity on outputs in parametric distance function estimations 
Abstract:
  The technology set involved in the estimation of a multi-output
 production frontier theoretically implies monotonicity on outputs. This is
 because an efficient firm cannot reduce the vector of outputs holding the
 vector of inputs fixed while it still belongs to the frontier. In
 empirical studies dealing with the estimation of parametric distance
 functions, this hypothesis is often violated by observations with far from
 average characteristics. To overcome this limitation, we propose a new
 approach for allowing the easy imposition of monotonicity on outputs in
 this context. This methodology is tested in the educational sector using
 Spanish student level data from the Programme for International Student
 Assessment (PISA) database. The results indicate that a nonnegligible
 8.33% of the production units break the monotonicity assumption.
 Furthermore, although there is no statistically significant difference in
 efficiency distribution by school ownership, our methodology helps to
 detect a slight worse mathematical performance for students attending
 public schools. 
Journal: Applied Economics 
Pages: 4651-4661 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.493141 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4651-4661




Template-Type: ReDIF-Article 1.0
Author-Name: Helmut Herwartz 
Author-X-Name-First: Helmut 
Author-X-Name-Last: Herwartz 
Author-Name: Annekatrin Niebuhr 
Author-X-Name-First: Annekatrin 
Author-X-Name-Last: Niebuhr 
Title: Growth, unemployment and labour market institutions: evidence from a cross-section of EU regions 
Abstract:
  The responsiveness of unemployment to growth is an issue of ongoing
 political and academic interest. Economic growth is supposed to be the key
 to increase labour demand and reduce unemployment. Departing from Okun's
 law, most research on the unemployment intensity of growth has focused on
 national disparities and the role of labour market institutions. Empirical
 evidence at the regional level is scarce. We investigate differences in
 regional labour market responsiveness and their potential determinants for
 a cross section of European regions. The data set covers the NUTS 2
 regions in the EU15 for the period 1980 to 2002. Following a spatial
 modelling approach interaction among neighbouring labour markets is taken
 into account. Our findings point to substantial differences in labour
 market effects of output growth among European countries and regions. Both
 national labour market institutions and regional characteristics, such as
 structural change explain a significant part of these disparities. 
Journal: Applied Economics 
Pages: 4663-4676 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.493142 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4663-4676




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Morrison 
Author-X-Name-First: Mark 
Author-X-Name-Last: Morrison 
Author-Name: Darla Hatton MacDonald 
Author-X-Name-First: Darla Hatton 
Author-X-Name-Last: MacDonald 
Title: A comparison of compensating surplus and budget reallocation with opportunity costs specified 
Abstract:
  The use of most nonmarket valuation techniques is predicated on
 respondents paying additional amounts of money for increased provision of
 a public good. However, in many circumstances this may not be appropriate.
 Treaty rights or the capacity of a government to raise and collect taxes
 in the context of a developing country may preclude the introduction of
 new taxes. Alternatively, there may be settings where respondents reject
 the notion of an additional payment and a different approach to estimating
 nonmarket values is needed. This article demonstrates a methodology for
 estimating compensating budget reallocation, which is the amount of
 expenditure on other public goods that respondents are willing to forego
 for the government to provide more of another public good. One of the main
 contributions of this article is a demonstration of how to improve the
 specification of the opportunity costs of budget reallocations. Second,
 using choice modelling for the estimation of budget reallocations is
 compared with the standard approach of estimating compensating surplus.
 The two approaches produce aggregate results that are of a similar
 magnitude, however the relative importance of the environmental attributes
 differs. We also investigate the similarity of value estimates across
 income groups, and similar to Swallow and McGonagle (2006), we find that
 budget reallocations produce a different set of preferences for lower
 income earners. 
Journal: Applied Economics 
Pages: 4677-4688 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.493143 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493143 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4677-4688




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Park 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Park 
Author-Name: Elizabeth Davis 
Author-X-Name-First: Elizabeth 
Author-X-Name-Last: Davis 
Title: Productivity and efficiency impacts of human resources practices in food retailing 
Abstract:
  Data from an annual survey of US supermarkets including detailed
 information on store characteristics, operations, and performance are used
 to develop an index of Human Resource (HR) practices for food retailers. A
 stochastic frontier analysis demonstrates that HR policies have a positive
 impact on value added in food retailing establishments while efficiency is
 not adversely influenced by HR practices. Managerial implications of the
 model link technical inefficiency estimates for retailers to slight
 declines in store level gross margins. Evaluated on the basis of technical
 efficiency, retailers choosing a portfolio of HR practices that score high
 on the HR index are able to match the performance of competitors pursuing
 an alternative low HR strategy. 
Journal: Applied Economics 
Pages: 4689-4697 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498348 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498348 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4689-4697




Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Elliott 
Author-X-Name-First: Caroline 
Author-X-Name-Last: Elliott 
Author-Name: Rob Simmons 
Author-X-Name-First: Rob 
Author-X-Name-Last: Simmons 
Title: Factors determining UK album success 
Abstract:
  This article uses a recently compiled dataset on the UK album sales to
 determine which factors contribute to best-selling album sales success. We
 control for factors including length of time since release, nationality of
 artist, artist type and album type, testing the increasing returns to
 information hypothesis. Information on general public online review scores
 for the albums in the dataset allows for a strong test of the accuracy of
 online reviews in predicting music sales, as online reviews are a
 relatively recent phenomenon, while the release of many of the albums
 predates the widespread use of Internet. 
Journal: Applied Economics 
Pages: 4699-4705 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498349 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498349 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4699-4705




Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Courty 
Author-X-Name-First: Pascal 
Author-X-Name-Last: Courty 
Author-Name: Mario Pagliero 
Author-X-Name-First: Mario 
Author-X-Name-Last: Pagliero 
Title: Does responsive pricing smooth demand shocks? 
Abstract:
  Using data from a unique pricing experiment, we investigate Vickrey's
 conjecture that responsive pricing can be used to smooth both predictable
 and unpredictable demand shocks. Our evidence shows that increasing the
 responsiveness of price to demand conditions reduces the magnitude of
 deviations in capacity utilization rates from a pre-determined target
 level. A 10% increase in price variability leads to a decrease in the
 variability of capacity utilization rates between 2% and 6%. We discuss
 implications for the use of demand-side incentives to deal with
 congestible resources. 
Journal: Applied Economics 
Pages: 4707-4721 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498350 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498350 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4707-4721




Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Bang Jou 
Author-X-Name-First: Jyh-Bang 
Author-X-Name-Last: Jou 
Author-Name: Tan (Charlene) Lee 
Author-X-Name-First: Tan 
Author-X-Name-Last: (Charlene) Lee 
Title: Mutually exclusive investment with technical uncertainty 
Abstract:
  A firm, which faces technical uncertainty as in Pindyck (1993) can choose
 between two mutually exclusive investment projects, Projects 1 and 2. The
 added option to exercise Project 2 makes the firm less likely to exercise
 Project 1. An increase in the degree of technical uncertainty, the
 investment rate or the investment value upon completion for Project 2
 encourages the firm to exercise Project 2 by increasing the trigger level
 of the expected cost of Project 2. This, however, ambiguously affects the
 firm's incentive to exercise Project 1, as the firm would rather implement
 Project 1 (2) in a region where the expected cost of Project 2 is
 relatively high (low). 
Journal: Applied Economics 
Pages: 4723-4728 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498351 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498351 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4723-4728




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Gries 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Gries 
Author-Name: Manfred Kraft 
Author-X-Name-First: Manfred 
Author-X-Name-Last: Kraft 
Author-Name: Daniel Meierrieks 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Meierrieks 
Title: Financial deepening, trade openness and economic growth in Latin America and the Caribbean 
Abstract:
  This contribution investigates the causal interactions between financial
 deepening, trade openness and economic growth in 13 Latin American and
 Caribbean countries. We construct a composite indicator for financial
 deepening and use it to detect Granger causality within a modified Vector
 Autoregressive/Vector Error Correction Model (VAR/VECM) framework. We find
 almost no evidence for the popular hypothesis of finance-led growth.
 Evidence of bidirectional finance-growth causality is stronger but mostly
 instable in the long run. Most results indicate a demand following or
 insignificant causal relationship between finance and growth. There is
 also no evidence that finance indirectly induces growth via the channel of
 trade openness. Hence, policies that prioritize financial and trade sector
 development cannot be supported. 
Journal: Applied Economics 
Pages: 4729-4739 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498352 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498352 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4729-4739




Template-Type: ReDIF-Article 1.0
Author-Name: Mehtap Kesriyeli 
Author-X-Name-First: Mehtap 
Author-X-Name-Last: Kesriyeli 
Author-Name: Erdal Ozmen 
Author-X-Name-First: Erdal 
Author-X-Name-Last: Ozmen 
Author-Name: Serkan Yi&#x11f;it 
Author-X-Name-First: Serkan 
Author-X-Name-Last: Yi&#x11f;it 
Title: Corporate sector liability dollarization and exchange rate balance sheet effect in Turkey 
Abstract:
  In this study, we investigate the causes and balance sheet effect
 consequences of Liability Dollarization (LD) of nonfinancial sectors in
 Turkey. The dynamic panel data Generalized Method of Moments (GMM) results
 suggest that both sector specific and macroeconomic variables are
 significant in explaining the corporate sector LD. Industries appear to
 partially match the currency composition of their debt with their income
 streams. Devaluations are found to be contractionary, in terms of
 investments and profits, for sectors with higher LD. Macroeconomic
 instability affects the performance of the industries negatively. Our
 results also stress the importance of strong macroeconomic policy stance
 for an endogenous dedollarization process. 
Journal: Applied Economics 
Pages: 4741-4747 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498353 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4741-4747




Template-Type: ReDIF-Article 1.0
Author-Name: Brenda Gannon 
Author-X-Name-First: Brenda 
Author-X-Name-Last: Gannon 
Author-Name: Jennifer Roberts 
Author-X-Name-First: Jennifer 
Author-X-Name-Last: Roberts 
Title: Part-time work and health among older workers in Ireland and Britain 
Abstract:
  Part-Time (PT) work is viewed as a viable option for people who wish to
 have a gradual transition to retirement. From a policy viewpoint, this may
 help to alleviate some labour supply shortages and fiscal pressures,
 especially in the context of the ageing population. Factors such as health
 or pension provision may influence a person's decision to work PT. This
 article considers the impact of health on the work decision of people aged
 50 and over in the UK and Ireland. Methodological issues are discussed and
 the impact of unobserved individual effects is estimated using the Mundlak
 (1978) estimator applied to the multinomial probit model. We find that
 health problems increase the probability of retirement for this age group
 in both countries. In Britain, those with health problems are less likely
 to work full time and more likely to work PT, however in Ireland, health
 problems appear to have no effect on the probability of PT work. This
 article discusses the potential reasons for these impacts and current
 policies on PT work. 
Journal: Applied Economics 
Pages: 4749-4757 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498354 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4749-4757




Template-Type: ReDIF-Article 1.0
Author-Name: Ram Acharya 
Author-X-Name-First: Ram 
Author-X-Name-Last: Acharya 
Author-Name: Henry Kinnucan 
Author-X-Name-First: Henry 
Author-X-Name-Last: Kinnucan 
Author-Name: Steven Caudill 
Author-X-Name-First: Steven 
Author-X-Name-Last: Caudill 
Title: Asymmetric farm-retail price transmission and market power: a new test 
Abstract:
  A finite mixture model is used to estimate farm-retail price transmission
 in the US fresh strawberry market. Results suggest two distinct pricing
 regimes associated with off- and peak-harvesting seasons. The market power
 parameter is significant in the peak-harvest regime, but not in the
 off-peak regime. Moreover, price changes are transmitted completely
 throughout the marketing channel in the off-peak regime when the market
 power parameter is zero, but not in the peak-harvest regime when the
 market power parameter is positive. This suggests that produce buyers are
 more apt to exercise market power when farm supplies are abundant than
 when they are scarce, and that the exercise of such power causes the
 farm-retail price linkage to become asymmetric. 
Journal: Applied Economics 
Pages: 4759-4768 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498355 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498355 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4759-4768




Template-Type: ReDIF-Article 1.0
Author-Name: Laure Turner 
Author-X-Name-First: Laure 
Author-X-Name-Last: Turner 
Author-Name: Herve Boulhol 
Author-X-Name-First: Herve 
Author-X-Name-Last: Boulhol 
Title: Recent trends and structural breaks in the US and EU15 labour productivity growth 
Abstract:
  This article examines shifts in labour productivity growth in the US and
 in Europe between 1970 and 2007 based on econometric tests of structural
 breaks. Additionally, it makes use of time-series-based projections of
 labour productivity growth up to 2009 in order to detect breaks depending
 on confidence intervals of the projections. The identification of
 structural breaks in the US labour productivity growth is far from
 obvious. A statistically significant break is found in the late 1990s only
 if at least the 97.5th percentile of forecasts materializes in the future,
 which means that despite a clear pick up in productivity growth in the
 second half of the 1990s, the size of the hump is not large enough
 compared with past variations to make this change a statistically
 significant break. However, a significant break point is detected in the
 mid-1990s for the difference in labour productivity growth between the US
 and the EU15, even when controlling for the convergence of Europe towards
 the US productivity levels that has contributed to higher European
 performance in the early catch up phase. Finally, within Europe, the
 accumulation of Information and Communication Technology (ICT) capital
 seems to be related to differences in the shifts in structural labour
 productivity growth across countries. 
Journal: Applied Economics 
Pages: 4769-4784 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498356 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498356 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4769-4784




Template-Type: ReDIF-Article 1.0
Author-Name: Moonsoo Park 
Author-X-Name-First: Moonsoo 
Author-X-Name-Last: Park 
Author-Name: Yanhong Jin 
Author-X-Name-First: Yanhong 
Author-X-Name-Last: Jin 
Author-Name: Alan Love 
Author-X-Name-First: Alan 
Author-X-Name-Last: Love 
Title: Dynamic and contemporaneous causality in a supply chain: an application of the US beef industry 
Abstract:
  Causal relationships are used to investigate information flows and
 directions of control in a decentralized multi-echelon supply chain where
 no central authority has system level control over optimizing decisions.
 We use secondary time-series data representing the US beef industry to
 investigate dynamic and contemporaneous causality based on out-of-sample
 Granger causality and Direct Acyclic Graphs (DAGs). Results indicate: (i)
 the US beef supply chain experienced a significant structural change in
 late 1996 and early 1997 that may be attributed to a weather induced
 production shock and an apparent turnaround of the cattle cycle; (ii)
 contemporaneous causalities appear to be stronger and dynamic causalities
 appear to be weaker after the structural change, suggesting faster and
 more effective information transmission along the supply chain after the
 structural change; (iii) contemporaneous information appears to flow from
 upstream to downstream tiers in the supply chain before the structural
 break, which reverses after the structural break, suggesting a shift in
 control from upstream to downstream firms; and (iv) co-use of spot market
 and contracts to procure strategic inputs by processors appears to allow
 processors some control of spot price through contract purchases in the
 post-break period. Our approach could be readily used to investigate other
 multi-echelon systems. 
Journal: Applied Economics 
Pages: 4785-4801 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498357 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498357 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4785-4801




Template-Type: ReDIF-Article 1.0
Author-Name: Firat Inceoglu 
Author-X-Name-First: Firat 
Author-X-Name-Last: Inceoglu 
Author-Name: Minsoo Park 
Author-X-Name-First: Minsoo 
Author-X-Name-Last: Park 
Title: Diffusion of a new product under network effects: the US DVD market 
Abstract:
  We formulate a model that captures the inter-dependence between hardware
 demand and software supply - indirect network effect - in the DVD
 industry. The identification of the network effect comes from the
 difference in software availability across two different formats: VHS and
 DVD. We find that a 1% increase in the number of DVD titles raises the
 demand for DVD players by 0.87%. Simultaneously, a 1% increase in video
 player ownership leads to a 0.14% increase in the variety of video titles.
 Our simulations show that hardware manufacturers might be able to
 internalize the network externality to increase total industry revenues. 
Journal: Applied Economics 
Pages: 4803-4815 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498358 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498358 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4803-4815




Template-Type: ReDIF-Article 1.0
Author-Name: J. Scott Shonkwiler 
Author-X-Name-First: J. Scott 
Author-X-Name-Last: Shonkwiler 
Author-Name: David Grigorian 
Author-X-Name-First: David 
Author-X-Name-Last: Grigorian 
Author-Name: Tigran Melkonyan 
Author-X-Name-First: Tigran 
Author-X-Name-Last: Melkonyan 
Title: Controlling for the underreporting of remittances 
Abstract:
  Empirical studies that use self-reported data on remittances to measure
 the latter's impact on microeconomic incentives mostly ignore the
 potential errors associated with reporting/measurement issues. An
 econometric procedure to control for these errors is developed and applied
 to household level data from Armenia. We find evidence of systematic
 underreporting of remittances. After controlling for this, we find a
 strong negative impact of remittances on incentives to work. 
Journal: Applied Economics 
Pages: 4817-4826 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498359 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498359 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4817-4826




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Cohen 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Cohen 
Author-Name: Catherine Morrison Paul 
Author-X-Name-First: Catherine Morrison 
Author-X-Name-Last: Paul 
Title: Scale and scope economies for drug abuse treatment costs: evidence for Washington State 
Abstract:
  Drug abuse treatment has been pervasive in the US in the recent years,
 and the associated direct treatment costs approached $18 billion in 2001.
 However, there have been few published studies on scale economies, and
 none on scope economies, for drug abuse treatment costs. We estimate a
 restricted cost function for 17 hospitals in Washington State that
 provided inpatient and/or outpatient drug abuse treatment during the years
 1997-2004. We find significant evidence of scale economies for hospitals
 that provide only outpatient drug abuse treatment services. The marginal
 costs of outpatient services are even smaller for hospitals that produce
 both outpatient and inpatient drug abuse treatment services. Further,
 these joint-production hospitals exhibit diseconomies of scope, or
 specialization economies. These results all imply that recent trends
 towards additional outpatient treatment services will enhance cost
 efficiency. 
Journal: Applied Economics 
Pages: 4827-4834 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498360 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498360 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4827-4834




Template-Type: ReDIF-Article 1.0
Author-Name: P. Siminski 
Author-X-Name-First: P. 
Author-X-Name-Last: Siminski 
Title: The price elasticity of demand for pharmaceuticals amongst high-income older Australians: a natural experiment 
Abstract:
  Most high-income older Australians became eligible for a pharmaceutical
 concession through a 1999 policy change. I exploit this natural experiment
 to estimate their price elasticity of demand for pharmaceuticals. The
 preferred model is a nonlinear Instrumental Variable (IV) regression,
 estimated on nationally representative repeated cross-sectional survey
 data using the Generalized Method of Moments (GMM). No significant
 evidence is found for endogenous take-up, and so cross-sectional estimates
 are also considered. Taking all of the results into account, the
 'headline' estimate is -0.1, implying that quantity demanded is not highly
 responsive to price. 
Journal: Applied Economics 
Pages: 4835-4846 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498361 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4835-4846




Template-Type: ReDIF-Article 1.0
Author-Name: Y. Biondi 
Author-X-Name-First: Y. 
Author-X-Name-Last: Biondi 
Title: Cost of capital, discounting and relational contracting: endogenous optimal return and duration for joint investment projects 
Abstract:
  Concession, project financing and public-private partnership schemes are
 investment projects that are generally submitted to valuation criteria
 based on discounted cash flow analysis. The theoretical basis of these
 valuation criteria are now at issue. Pursuant to recent advances in
 relational contracting economics and behavioural finance, joint investment
 projects can be considered as special relational environments where the
 project's returns improve on alternative replacement opportunities. This
 article seeks to bridge the gap between new theories and widely used
 valuation techniques by providing a generalized approach to investment
 valuation. This article suggests reasonable valuation criteria that fit
 these new theoretical developments, including an endogenous optimal
 duration function that may be integrated into the project's contractual
 agreement. 
Journal: Applied Economics 
Pages: 4847-4864 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498362 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498362 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4847-4864




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Ziesemer 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Ziesemer 
Title: Growth with endogenous migration hump and the multiple, dynamically interacting effects of aid in poor developing countries 
Abstract:
  We show empirically that aid given to poor developing countries enhances
 growth and reduces emigration, once several dynamically interacting
 effects of aid are taken into account in a system of equations. We
 estimate equations for net immigration flows as a share of the labour
 force and Gross Domestic Product Per Capita (GDPPC) growth and also for
 all their regressors including remittances and official development aid.
 We use dynamic panel data methods for a sample of poor countries with
 GDPPC below $1200 (2000), for which aid is about 9.5% of GDP. The partial
 effects in these regressions are working against each other. Therefore, we
 integrate all equations into a dynamic system and run a simulation. One
 result is an endogenous migration hump with several peaks. In a
 counterfactual simulation, we double aid with the consequence that for
 more than a 100 years migration is reduced and the GDPPC is enhanced,
 because the positive effects of aid on investment and education dominate
 the negative direct effects of aid on growth and the unfavourable effects
 on savings, tax revenues and labour force growth. 
Journal: Applied Economics 
Pages: 4865-4878 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498363 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4865-4878




Template-Type: ReDIF-Article 1.0
Author-Name: Joon-Ho Hahm 
Author-X-Name-First: Joon-Ho 
Author-X-Name-Last: Hahm 
Author-Name: Sangche Lee 
Author-X-Name-First: Sangche 
Author-X-Name-Last: Lee 
Title: Economic effects of positive credit information sharing: the case of Korea 
Abstract:
  In many countries, in addition to negative credit information such as
 loan default and arrears, positive credit information is also exchanged on
 a voluntary and reciprocal basis. Employing optimal credit decision models
 of profit maximizing banks, and utilizing a unique dataset of 2 million
 consumer loan obligors in Korea, we investigate the economic effects of
 sharing positive credit information in addition to negative credit
 information already exchanged. We find that the discriminatory power of
 the credit scoring model improves significantly. We proceed to investigate
 the economic effects of the information gap in a competitive credit market
 by assuming two representative banks that differ only in the level of
 credit information sharing. The bank that utilizes negative information
 only suffers from deterioration of the borrower pool and reduced profit,
 as high credit risk borrowers are more concentrated on this bank due to
 underpricing of risks. Our finding suggests that banks have incentives to
 voluntarily participate in the positive information sharing mechanism,
 since even a small difference in discriminatory power stemming from the
 information gap may lead to a significant fall in profitability as the
 distribution of borrower quality changes endogenously due to adverse
 selection problems. 
Journal: Applied Economics 
Pages: 4879-4890 
Issue: 30 
Volume: 43 
Year: 2011 
X-DOI: 10.1080/00036846.2010.498364 
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498364 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4879-4890




Template-Type: ReDIF-Article 1.0
Author-Name: Dominique   M. Gross 
Author-X-Name-First: Dominique   M. 
Author-X-Name-Last: Gross 
Author-Name: Nicolas Schmitt 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Schmitt 
Title: Low- and high-skill migration flows: free mobility versus other determinants 
Abstract:
  We investigate what economic factors drive international migration of
 workers to France and how their influence varies across different skill
 levels under restrictive policies and through time as free mobility is
 implemented. We find that neither incentives nor policy parameters are
 similar across skill levels. Migration drivers such as a network of
 compatriots and relative incomes influence the movement of low-skill
 workers. High-skill individuals however move only according to financial
 opportunities be they standard of living or returns to skill within a
 class. We conclude that competition for high-skill workers among
 Organization for Economic Co-operation and Development (OECD) countries
 requires more than free mobility to successfully attract high-skill
 migrants even for a developed country such as France. 
Journal: Applied Economics 
Pages: 1-20 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.498365 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498365 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:1-20




Template-Type: ReDIF-Article 1.0
Author-Name: Olena Stavrunova 
Author-X-Name-First: Olena 
Author-X-Name-Last: Stavrunova 
Author-Name: Oleg Yerokhin 
Author-X-Name-First: Oleg 
Author-X-Name-Last: Yerokhin 
Title: Two-part fractional regression model for the demand for risky assets&#x2020; 
Abstract:
  Empirical studies of household portfolio choices are often interested in
 quantifying the effects of various covariates on the fraction of a
 household's wealth invested in risky assets such as common stocks. The
 preferred econometric specification in these studies is the two-limit
 Tobit model, which can accommodate the fractional nature of the dependent
 variable. However, it is restrictive, because it assumes that the same
 data generating process determines both whether households participate in
 the stock market and the fraction of wealth invested in stocks. This
 article demonstrates that, in this setting, a two-part version of the
 fractional response model of Papke and Wooldridge (1996) constitutes an
 attractive alternative to Tobit by comparing the performance of the two
 models using data on portfolio choices of Australian households. We find
 that (1) the Tobit model is rejected by our data in favour of a two-part
 specification; and (2) marginal effects of covariates on the share of
 risky assets conditional on participation estimated from Tobit are
 confounded by the effects of these covariates on the participation
 decision. 
Journal: Applied Economics 
Pages: 21-26 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.498366 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498366 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:21-26




Template-Type: ReDIF-Article 1.0
Author-Name: Anindita Chakrabarti 
Author-X-Name-First: Anindita 
Author-X-Name-Last: Chakrabarti 
Title: Determinants of child morbidity and factors governing utilization of child health care: evidence from rural India 
Abstract:
  Prevention as well as effective treatment of respiratory infections and
 diarrhoea depends on several individual, household and community level
 factors. The objective of this article is to estimate the role played by
 such factors in determining the occurrence of such diseases and
 utilization of formal health care for children under the age of three in
 India. The major findings are briefly enlisted as follows. First, a woman
 with greater educational qualification and autonomy in terms of her power
 to take decisions on her own, control over household resources and
 complete freedom to move beyond the confines of her household exerts a
 significant influence on the probability of seeking care. In addition to
 this, formal care is more likely to be sought for children whose mothers
 are more exposed to the media. Programmes devised to enhance utilization
 of formal health care for children should be targeted to catering for the
 needs of the vulnerable group i.e. female child, predominantly, residing
 in households belonging to Scheduled Tribe. In addition to this, children
 belonging to Muslim households are at higher risk of contracting the
 diseases but there is no significant difference in their health seeking
 behaviour as compared to other religious groups. 
Journal: Applied Economics 
Pages: 27-37 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.498367 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498367 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:27-37




Template-Type: ReDIF-Article 1.0
Author-Name: Rolf F&#xE4;re 
Author-X-Name-First: Rolf 
Author-X-Name-Last: F&#xE4;re 
Author-Name: Shawna Grosskopf 
Author-X-Name-First: Shawna 
Author-X-Name-Last: Grosskopf 
Author-Name: Carl   A. Pasurka 
Author-X-Name-First: Carl   A. 
Author-X-Name-Last: Pasurka 
Author-Name: William   L. Weber 
Author-X-Name-First: William   L. 
Author-X-Name-Last: Weber 
Title: Substitutability among undesirable outputs 
Abstract:
  In recent years, economists have started to move beyond calculating
 regulatory effects on a pollutant-by-pollutant basis since their
 interaction is important. In this study, we take up this issue. To allow
 for joint production of multiple pollutants and marketable output, we
 specify our technology using a directional distance function. This allows
 us to treat pollutants as joint outputs, yet accounts for their
 &#x2018;undesirability&#x2019;. We estimate the distance function for a
 sample of coal-fired electric power plants from 1985 to 1998, which
 includes the first 4 years of Phase I of the Clean Air Act Amendments of
 1990. We focus on the interaction between SO<sub>2</sub> and NO<italic>
 <sub>x</sub> </italic>, as they became more highly regulated and estimate
 shadow prices of the pollutants and the Morishima elasticity of
 transformation between two pollutants, NO<italic> <sub>x</sub> </italic>
 and SO<sub>2</sub>, as well as with respect to the desirable output,
 kilowatt-hours of electricity. As expected, we find that power plants
 increase NO<italic> <sub>x</sub> </italic> emissions as they decrease
 SO<sub>2</sub>, i.e. they are substitutes. 
Journal: Applied Economics 
Pages: 39-47 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.498368 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498368 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:39-47




Template-Type: ReDIF-Article 1.0
Author-Name: Horst Feldmann 
Author-X-Name-First: Horst 
Author-X-Name-Last: Feldmann 
Title: Inflation volatility and unemployment in industrial countries 
Abstract:
  Using annual data on 20 industrial countries over the period from 1972 to
 2003, this article analyses the impact of inflation volatility on
 unemployment. It finds that higher volatility over the previous 10 years
 is associated with a higher unemployment rate in the current year. The
 effect appears to be small in the short run and medium sized in the long
 run. The results are robust to variations in specification and sample
 size. The magnitude of the effect is not smaller if the sample is limited
 to the more recent sub-period of comparatively low inflation volatility. 
Journal: Applied Economics 
Pages: 49-64 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.498369 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498369 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:49-64




Template-Type: ReDIF-Article 1.0
Author-Name: Sharmistha Self 
Author-X-Name-First: Sharmistha 
Author-X-Name-Last: Self 
Author-Name: Richard Grabowski 
Author-X-Name-First: Richard 
Author-X-Name-Last: Grabowski 
Title: Opportunities for women and Islam: variations upon variations 
Abstract:
  Religion has long been thought to be an important institution influencing
 economic development. More recently, it has also been argued that religion
 influences economic and social opportunities for women, specifically, that
 Islam limits women's opportunities. A revisionist view has countered with
 the argument that once one accounts for oil rents and/or fertility, then
 much of the negative effect disappears. In addition, it has been argued
 that the impact of Islam varies greatly from region to region. The
 empirical results from this article indicate that indeed once an account
 is taken of the impact of fertility, much, but not all, of the negative
 impact of Islam on relative female performance disappears. In addition,
 the impact of Islam on relative female performance does vary greatly from
 region to region. Finally, the inclusion of a variable measuring oil rents
 does not seem to substantially influence the results. 
Journal: Applied Economics 
Pages: 65-79 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.498370 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498370 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:65-79




Template-Type: ReDIF-Article 1.0
Author-Name: Lionel Page 
Author-X-Name-First: Lionel 
Author-X-Name-Last: Page 
Title: &#x2018;It ain&#x2019;t over till it's over.&#x2019; Yogi Berra bias on prediction markets 
Abstract:
  The recent expansion of prediction markets provides a great opportunity
 to test the market efficiency hypothesis and the calibration of trader
 judgements. Using a large database of observed prices, this article
 studies the calibration of prediction markets prices on sporting events
 using both nonparametric and parametric methods. While only minor bias can
 be observed during most of the lifetime of the contracts, the calibration
 of prices deteriorates very significantly in the last moments of the
 contracts&#x2019; lives. Traders tend to overestimate the probability of
 the losing team to reverse the situation in the last minutes of the game. 
Journal: Applied Economics 
Pages: 81-92 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.498578 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498578 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:81-92




Template-Type: ReDIF-Article 1.0
Author-Name: Maryam H&#x2019;madoun 
Author-X-Name-First: Maryam 
Author-X-Name-Last: H&#x2019;madoun 
Author-Name: Walter Nonneman 
Author-X-Name-First: Walter 
Author-X-Name-Last: Nonneman 
Title: Explaining differences in job retention between alien and nonalien workers after an in-company training 
Abstract:
  This study focuses on the job retention of unemployed workers, after they
 attended a subsidized in company training programme in Flanders. Using a
 new large scale dataset of the Flemish Labour Exchange, we look for
 differences in the probability of employment between aliens and nonaliens
 during the 36 months following their on the job training. We further
 investigate whether differences persist after controlling for several
 socio-economic characteristics and labour market related variables.
 Estimating a modified probit model we find that, on average, being an
 alien lowers the probability of employment after training by approximately
 15%. This effect reduces to 10% when controlling for other variables. The
 effect of education on a trainee's employment chances differs for aliens
 and nonaliens. Aliens have a markedly lower return on investment in
 education. Good language skills and a longer in company training period
 also increase employment probability, but more so for aliens. Other
 control variables do not significantly improve the explanatory power of
 the model. The main conclusion is that even after a tailored on the job
 training, aliens still lag behind nonaliens in terms of employment
 success. 
Journal: Applied Economics 
Pages: 93-103 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.500271 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500271 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:93-103




Template-Type: ReDIF-Article 1.0
Author-Name: Ellen   K. Nyhus 
Author-X-Name-First: Ellen   K. 
Author-X-Name-Last: Nyhus 
Author-Name: Empar Pons 
Author-X-Name-First: Empar 
Author-X-Name-Last: Pons 
Title: Personality and the gender wage gap 
Abstract:
  In this study, we investigate whether personality traits contribute
 towards a better understanding of the reasons for the gender wage gap. We
 explore whether two of the personality factors put forward by Bowles
 <italic>et&#xA0;al</italic>. (2001) as likely to be incentive enhancing in
 the employer--employee relationship can explain the difference in wages
 for women and men. These are (1) personal self efficacy (Locus of Control
 (LoC)) and (2) time preference. We also study the role of the so called
 <italic>Big Five</italic> personality traits (extraversion, emotional
 stability, agreeableness, openness intellect and conscientiousness), which
 have been associated with earnings in several recent studies. Using a
 sample of Dutch employees, we found that 11.5% of the observed gender wage
 gap could be ascribed to differences in the personality trait scores
 (mainly in agreeableness and intellect), while less than 0.5% could be
 ascribed to gender differences in the returns to the traits. The addition
 of personality traits to a traditional human capital model reduces the
 unexplained part of the gender wage gap from 75.2% to 62.7%. We therefore
 conclude that these traits represent a valuable addition to the model. 
Journal: Applied Economics 
Pages: 105-118 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.500272 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500272 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:105-118




Template-Type: ReDIF-Article 1.0
Author-Name: Nalan Ba&#x15F;t&#xFC;rk 
Author-X-Name-First: Nalan 
Author-X-Name-Last: Ba&#x15F;t&#xFC;rk 
Author-Name: Richard Paap 
Author-X-Name-First: Richard 
Author-X-Name-Last: Paap 
Author-Name: Dick van Dijk 
Author-X-Name-First: Dick 
Author-X-Name-Last: van Dijk 
Title: Structural differences in economic growth: an endogenous clustering approach 
Abstract:
  This article addresses heterogeneity in determinants of economic growth
 in a data-driven way. Instead of defining groups of countries with
 different growth characteristics <italic>a priori</italic>, based on, for
 example, geographical location, we use a finite mixture panel model and
 endogenous clustering to examine cross-country differences and
 similarities in the effects of growth determinants. Applying this approach
 to an annual unbalanced panel of 59 countries in Asia, Latin and Middle
 America and Africa for the period 1971--2000, we can identify two groups
 of countries in terms of distinct growth structures. The structural
 differences between the country groups mainly stem from different effects
 of investment, openness measures and government share in the economy.
 Furthermore, the detected segmentation of countries does not match with
 conventional classifications in the literature. 
Journal: Applied Economics 
Pages: 119-134 
Issue: 1 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.500274 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500274 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:1:p:119-134




Template-Type: ReDIF-Article 1.0
Author-Name: Luis   E. Arango 
Author-X-Name-First: Luis   E. 
Author-X-Name-Last: Arango 
Author-Name: Fernando Arias 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Arias 
Author-Name: Adriana Fl&#xF3;rez 
Author-X-Name-First: Adriana 
Author-X-Name-Last: Fl&#xF3;rez 
Title: Determinants of commodity prices 
Abstract:
  A panel of annual information between 1960 and 2006 for approximately 50
 different commodity prices and some other variables and sources is used to
 tests the determinants of commodity prices. According to the evidence,
 interest rates seem to maintain a negative relationship with commodity
 prices. 
Journal: Applied Economics 
Pages: 135-145 
Issue: 2 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.500273 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500273 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:2:p:135-145




Template-Type: ReDIF-Article 1.0
Author-Name: Jos頃uesta 
Author-X-Name-First: Jos頍
Author-X-Name-Last: Cuesta 
Author-Name: Camilo Boh&#xF3;rquez 
Author-X-Name-First: Camilo 
Author-X-Name-Last: Boh&#xF3;rquez 
Title: Soccer and national culture: estimating the impact of violence on 22 lads after a ball 
Abstract:
  Sports have been recently conceptualized as an effective tool for
 development. Questioning that argument, recent evidence suggests that the
 practice of soccer reveals national cultures of violence prevailing in
 players&#x2019; countries of origin. We model violent behaviour in the
 soccer pitch as a function of game specific controls as well as
 socioeconomic, political, cultural and conflict variables characterizing
 players&#x2019; home countries. We construct a database for the Latin
 American 2008 <italic>Libertadores</italic> Cup Competition and find that
 across multiple specifications and estimating techniques, only game
 specific variables determine sanctions to violent actions. There are three
 compatible explanations for this result: highly skilled soccer players may
 not be representative average citizens; violent conflicts may not
 necessarily cause a violent culture affecting all corners of society; and
 even when violent cultures are transmitted to individual players, those
 values do not condition significantly their behaviour during games. After
 all, sports may not be a pernicious activity that intrinsically transmits
 violent values to youths. 
Journal: Applied Economics 
Pages: 147-161 
Issue: 2 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.500275 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500275 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:2:p:147-161




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh   Kumar Narayan 
Author-X-Name-First: Paresh   Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Stephan Popp 
Author-X-Name-First: Stephan 
Author-X-Name-Last: Popp 
Title: A nonlinear approach to testing the unit root null hypothesis: an application to international health expenditures 
Abstract:
  In this article, we examine the unit root null hypothesis for per capita
 total Health Expenditures (HEs), per capita private HEs and per capita
 public HEs for 29 Organization for Economic Co-operation and Development
 (OECD) countries. The novelty of our work is that we use a new nonlinear
 unit root test that allows for one structural break in the data series. We
 find that for around 45% of the countries, we are able to reject the unit
 root hypothesis for each of the three HE series. Moreover, using Monte
 Carlo simulations, we show that our proposed unit root model has better
 size and power properties than the widely used Augmented Dickey--Fuller
 (ADF) and Lagrange Multiplier (LM) type tests. 
Journal: Applied Economics 
Pages: 163-175 
Issue: 2 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.500276 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500276 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:2:p:163-175




Template-Type: ReDIF-Article 1.0
Author-Name: Roger Bowles 
Author-X-Name-First: Roger 
Author-X-Name-Last: Bowles 
Author-Name: Chrisostomos Florackis 
Author-X-Name-First: Chrisostomos 
Author-X-Name-Last: Florackis 
Title: Impatience, reputation and offending 
Abstract:
  Reconviction rates for offenders are high despite sentence severity
 increasing with the number of convictions. The standard one-shot model of
 crime provides little scope for exploring &#x2018;persistence
 effects&#x2019;, although recent papers by Emons and others have sought to
 put offending decisions into a more dynamic setting. This article develops
 a simple two-period model of offending in which criminal convictions act
 as an adverse signal in labour markets. Ordinary and multinomial logistic
 regression modelling is used to test the predictions of the theoritical
 model and explore the link between unemployment and convictions. The
 empirical results, which are based on longitudinal data from the National
 Child Development Study (NCDS) in the UK, strongly support the view that,
 <italic>ceteris paribus</italic>, individuals with previous convictions
 are at higher risk of being unemployed. 
Journal: Applied Economics 
Pages: 177-187 
Issue: 2 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.500277 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500277 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:2:p:177-187




Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Dong Lee 
Author-X-Name-First: Ki-Dong 
Author-X-Name-Last: Lee 
Author-Name: Seok-Joon Hwang 
Author-X-Name-First: Seok-Joon 
Author-X-Name-Last: Hwang 
Author-Name: Min-hwan Lee 
Author-X-Name-First: Min-hwan 
Author-X-Name-Last: Lee 
Title: Agglomeration economies and location choice of Korean manufacturers within the United States 
Abstract:
  Employing the micro data for 1997--2004, we investigate the location
 decision of Korean-affiliated manufacturing investments in the United
 States. The conditional logit estimates confirm that although
 industry-specific Korean agglomeration and domestic agglomeration play an
 important role, the Foreign Direct Investment (FDI) location is more
 sensitively affected by the interstate difference in endowment conditions
 than by the same nationality agglomeration. Both business service and
 intermediate good agglomeration are main determinants of FDI location.
 Furthermore, estimation results show substantial change in the location
 pattern after recovery from the Asian financial crisis. We find quite
 different patterns of location decision across industry groups; dispersion
 forces work greater than the agglomeration force in the consumer goods
 industry, forward linkages with US upstream firms can be seen in the
 assembly and processing industry, and typical follow-the-leader pattern
 mixed with market potential effect by Korean immigrants is seen in the
 basic material manufacturing industry. 
Journal: Applied Economics 
Pages: 189-200 
Issue: 2 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.502109 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502109 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:2:p:189-200




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Kalb 
Author-X-Name-First: Alexander 
Author-X-Name-Last: Kalb 
Author-Name: Benny Geys 
Author-X-Name-First: Benny 
Author-X-Name-Last: Geys 
Author-Name: Friedrich Heinemann 
Author-X-Name-First: Friedrich 
Author-X-Name-Last: Heinemann 
Title: Value for money? German local government efficiency in a comparative perspective 
Abstract:
  In this article, we investigate the cost efficiency of German local
 governments in the state of Baden-W&#xFC;rttemberg in 2004 using a
 stochastic frontier approach. Besides being the first study on German
 data, we add two elements to the literature. First, we provide a
 comparative perspective, allowing us to embed our results in the broader
 literature. Second, unlike most previous studies, we explicitly account
 for exogenous or nondiscretionary influences when estimating municipal
 efficiency scores. The results suggest that disregarding such exogenous
 factors can lead to significant and systematic bias in the estimated
 inefficiency levels. Particularly, underestimation of efficiency occurs
 for municipalities with high tourist activity, while the reverse is true
 for municipalities with high unemployment. 
Journal: Applied Economics 
Pages: 201-218 
Issue: 2 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.502110 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502110 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:2:p:201-218




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Rosenman 
Author-X-Name-First: Robert 
Author-X-Name-Last: Rosenman 
Author-Name: Scott Goates 
Author-X-Name-First: Scott 
Author-X-Name-Last: Goates 
Author-Name: Laura Hill 
Author-X-Name-First: Laura 
Author-X-Name-Last: Hill 
Title: Participation in universal prevention programmes 
Abstract:
  We analyse family decisions to participate in community-based universal
 substance-abuse prevention programmes through the framework of expected
 utility theory. Family functioning, which has been shown to be a good
 indicator of child risk for substance abuse, provides a useful reference
 point for family decision making. Our results show that well-functioning
 families (with children at low risk for substance use) should have the
 lowest incentive to participate, but that high-risk families may also opt
 out of prevention programmes. For programmes that are most effective for
 high-risk youth, this could be a problem. Using data from the
 Strengthening Families Programme (SFP) and the Washington Healthy Youth
 Survey (HYS), we empirically test the implications of our model and find
 that at least for one measure of family functioning those families with
 children most likely to be at risk for substance use are opting out of the
 programme. 
Journal: Applied Economics 
Pages: 219-228 
Issue: 2 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.502111 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502111 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:2:p:219-228




Template-Type: ReDIF-Article 1.0
Author-Name: Bernhard Michel 
Author-X-Name-First: Bernhard 
Author-X-Name-Last: Michel 
Author-Name: Fran&#xE7;ois Rycx 
Author-X-Name-First: Fran&#xE7;ois 
Author-X-Name-Last: Rycx 
Title: Does offshoring of materials and business services affect employment? Evidence from a small open economy 
Abstract:
  The fear of massive job losses has prompted a fast-growing literature on
 offshoring and its impact on employment in advanced economies. This
 article examines the situation for Belgium. It improves the offshoring
 intensity measure by computing a volume measure of the share of imported
 intermediates in output, and it is among the first to address both
 materials and business services offshoring to high wage and low wage
 countries. Estimations of static and dynamic industry-level labour demand
 equations augmented by offshoring intensities do not reveal a significant
 impact of either materials or business services offshoring on total
 employment for Belgium between 1995 and 2003. This result holds for both
 the manufacturing sector and the service sector and it proves robust to
 splitting the manufacturing sector into high technology and low technology
 industries. 
Journal: Applied Economics 
Pages: 229-251 
Issue: 2 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.503932 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.503932 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:2:p:229-251




Template-Type: ReDIF-Article 1.0
Author-Name: Antonios Georgopoulos 
Author-X-Name-First: Antonios 
Author-X-Name-Last: Georgopoulos 
Author-Name: Kostas Karamanis 
Author-X-Name-First: Kostas 
Author-X-Name-Last: Karamanis 
Title: The implications of the liberalization in telecommunication markets for market structure and price policy: evidence from a small open economy 
Abstract:
  This study analyses the impact of liberalization on market structure and
 pricing in the Greek telecommunication market from 1992 to 2005. The data
 refers to 44 of the most prominent companies of fixed telephony, mobile
 telephony and internet services and was compiled by means of interviews
 with the help of a questionnaire. Our descriptive analysis concluded that
 liberalization of the telecommunication market reduced its concentration
 degree, increased competition and induced price cuts. This conclusion is
 supported by other research studies concerning other countries of the EU,
 since Greece as an EU member country has also implemented the respective
 European policy in the specific industry. As far as the econometric level
 is concerned, we used panel Feasible Generalized Least Squares (FGLS).
 FGLS is an appropriate tool for samples such as our own, composed by
 intersectoral data that extend to more than one time periods, and without
 correlation between the unobserved effects and the interpretative
 variables. Our econometric research showed that both private ownership and
 specialized personnel in the commercial and technical sector seem to
 positively influence the companies&#x2019; market share. In turn, a large
 market share offers companies more freedom to cut down prices in their
 services. However, there is still considerable need for econometric
 research in this field. 
Journal: Applied Economics 
Pages: 253-263 
Issue: 2 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.505556 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505556 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:2:p:253-263




Template-Type: ReDIF-Article 1.0
Author-Name: Mauricio Jara-Bertin 
Author-X-Name-First: Mauricio 
Author-X-Name-Last: Jara-Bertin 
Author-Name: F鬩x   J. L&#xF3;pez-Iturriaga 
Author-X-Name-First: F鬩x   J. 
Author-X-Name-Last: L&#xF3;pez-Iturriaga 
Author-Name: &#xD3;scar L&#xF3;pez-de-Foronda 
Author-X-Name-First: &#xD3;scar 
Author-X-Name-Last: L&#xF3;pez-de-Foronda 
Title: Does the influence of institutional investors depend on the institutional framework? An international analysis 
Abstract:
  This article analyses the effect of institutional ownership in
 alleviating or exacerbating the conflicts of interests among stakeholders
 in different legal and institutional frameworks. This analysis is carried
 out based on two characteristics: the concentration of power of
 institutional ownership and the identification of the main types of
 institutional investors. In common law countries, consistent with the
 convergence and entrenchment hypotheses, we find a U-shape relation
 between ownership structure and firm performance. In civil law countries,
 consistent with the collusion and contest theories, we find an inverted
 U-shape relation. We also find that when institutional investors are
 classified as pressure resistant and pressure sensitive according to the
 strength of their ties with managers, pressure-resistant investors, who
 operate more independently, are the most capable of improving the value of
 the firm. 
Journal: Applied Economics 
Pages: 265-278 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.502112 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502112 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:265-278




Template-Type: ReDIF-Article 1.0
Author-Name: Gerhard Riener 
Author-X-Name-First: Gerhard 
Author-X-Name-Last: Riener 
Title: Inequality and mobility of household incomes in Europe: evidence from the ECHP 
Abstract:
  In this article we want to shed light on two aspects of income mobility:
 relative total income mobility using the estimator by Fields and Ok (1999)
 and equalization of long-run incomes measured by the index of Fields
 (2009). The cross country comparison shows a negative relationship between
 total relative mobility and long-run income equalization, this result is
 contrary to the intuition given by Shorrocks (1978a) who stated that
 higher relative mobility will cause higher equalization of incomes when
 the accounting period is extended. 
Journal: Applied Economics 
Pages: 279-288 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.505555 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505555 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:279-288




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy   J. Halliday 
Author-X-Name-First: Timothy   J. 
Author-X-Name-Last: Halliday 
Author-Name: Sally Kwak 
Author-X-Name-First: Sally 
Author-X-Name-Last: Kwak 
Title: What is a peer? The role of network definitions in estimation of endogenous peer effects 
Abstract:
  We employ a standard identification strategy from the peer effects
 literature to investigate the importance of network definitions in
 estimation of endogenous peer effects. We use detailed information on
 friends in the National Longitudinal Study of Adolescent Health Survey
 (Add Health) to construct two network definitions that are less <italic>ad
 hoc</italic> than the school-grade cohorts commonly used in the
 educational peer effects literature. We demonstrate that accurate
 definitions of the network seriously impact estimation of peer effects. In
 particular, we show that peer effects estimates on educational
 achievement, smoking and drinking are substantially larger with our more
 detailed measures than with the school-grade cohorts. These results
 highlight the need to further understand how friendships form in order to
 fully understand implications for policy that alters the peer group mix at
 the classroom or cohort level. 
Journal: Applied Economics 
Pages: 289-302 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.505557 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505557 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:289-302




Template-Type: ReDIF-Article 1.0
Author-Name: B. James Deaton 
Author-X-Name-First: B. James 
Author-X-Name-Last: Deaton 
Author-Name: Ekaterina Niman 
Author-X-Name-First: Ekaterina 
Author-X-Name-Last: Niman 
Title: An empirical examination of the relationship between mining employment and poverty in the Appalachian region 
Abstract:
  We empirically examine the relationship between the share of employment
 in the mining sector and poverty rates in Appalachian counties of the
 United States. Using panel data we decompose the effect of an increase in
 a sector's employment share (i.e. mining, manufacturing, agriculture,
 services and construction) to identify an immediate and lag effect. With
 regard to the mining sector the empirical results suggest that the
 immediate effect reduces poverty rates while the lag effect is associated
 with increases in the poverty rate. We assess these results in the context
 of previous literature that examines the relationship between resource
 intensive economies and economic development. 
Journal: Applied Economics 
Pages: 303-312 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.505558 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505558 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:303-312




Template-Type: ReDIF-Article 1.0
Author-Name: S. Samarajeewa 
Author-X-Name-First: S. 
Author-X-Name-Last: Samarajeewa 
Author-Name: G. Hailu 
Author-X-Name-First: G. 
Author-X-Name-Last: Hailu 
Author-Name: S. R. Jeffrey 
Author-X-Name-First: S. R. 
Author-X-Name-Last: Jeffrey 
Author-Name: M. Bredahl 
Author-X-Name-First: M. 
Author-X-Name-Last: Bredahl 
Title: Analysis of production efficiency of beef cow/calf farms in Alberta 
Abstract:
  This article measures production efficiency across cow--calf farms in
 Alberta, and examines the sources of variation in efficiency. Average
 technical, allocative and economic efficiencies are, respectively, 83%,
 78% and 67%. Biological efficiency (increased conception, calving and
 weaning rates), larger herd size, higher share of family labour and
 greater expense for bedding material reduce inefficiency. Inefficiency was
 also related to receipt of government subsidies. 
Journal: Applied Economics 
Pages: 313-322 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.507173 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.507173 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:313-322




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Casacuberta 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Casacuberta 
Author-Name: N鳴or Gandelman 
Author-X-Name-First: N鳴or 
Author-X-Name-Last: Gandelman 
Title: Multiple job holding: the artist's labour supply approach 
Abstract:
  This article analyses a labour supply model in which individuals maximize
 a utility function that depends on leisure time, consumption and time
 devoted to an activity that is termed &#x2018;artistic&#x2019;. This
 activity may generate income that depends nonlinearly on hours dedicated
 to it. The individual can also work in the labour market (an activity that
 does not increase utility by itself) in exchange for an hourly wage, and
 obtain income not related to hours. Conditions are obtained that sort
 individuals into two groups, part-time and full-time artists, deriving
 their labour supply functions in both activities. The predictions of the
 model are tested empirically using a sample of musicians from a Uruguayan
 performing rights society. Increases in outside wages drive part-time
 artists out of the labour market, but no significant increase in arts
 hours is detected. Higher nonlabour income also reduces nonarts work time
 of part-time artists, but does not have a significant impact in their arts
 hours. Conversely, arts hours of full-time artists increase with nonlabour
 income. 
Journal: Applied Economics 
Pages: 323-337 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.508719 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508719 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:323-337




Template-Type: ReDIF-Article 1.0
Author-Name: Jacqueline Agesa 
Author-X-Name-First: Jacqueline 
Author-X-Name-Last: Agesa 
Author-Name: Richard   U. Agesa 
Author-X-Name-First: Richard   U. 
Author-X-Name-Last: Agesa 
Title: Imports, unionization and racial wage discrimination in the US 
Abstract:
  Past studies of the relationship between competition and racial wages
 find that domestic competition reduces racial wage discrimination of
 nonunion workers. This article examines the effects of foreign competition
 on racial wages of union and nonunion workers utilizing an empirical model
 which allows for cluster-adjusted SEs by industry. Such a procedure allows
 independence of observations across industries but not within industries,
 thereby not overstating the significance of industry invariant controls.
 In this analysis, clustered SEs prevent the overstatement of the
 significance of imports as a means to reduce earnings discrimination. We
 find evidence of a wage premium for nonunion white workers in concentrated
 industries; however, imports cause the wages of nonunion whites to
 converge towards market rates. In contrast, for union workers in
 concentrated industries, wage standardization provides a sanctuary from
 market power initiated discrimination such that imports play a limited
 role in reducing discrimination. 
Journal: Applied Economics 
Pages: 339-350 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.508720 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508720 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:339-350




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Coccorese 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Coccorese 
Title: Information sharing, market competition and antitrust intervention: a lesson from the Italian insurance sector 
Abstract:
  By means of an application of the Rosse--Panzar methodology, we assess
 the degree of competition in the Italian car insurance market in order to
 evaluate the considerable fine that is imposed on 39 companies by the
 Italian Antitrust Authority (IAA) in 2000 for their supposed
 anticompetitive behaviour due to a longstanding information exchange
 through a third independent company. Our results show that this group of
 firms has earned revenues as if under monopoly or collusive oligopoly
 conditions, therefore endorsing the decision of IAA. 
Journal: Applied Economics 
Pages: 351-359 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.508721 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508721 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:351-359




Template-Type: ReDIF-Article 1.0
Author-Name: Wenyu Zang 
Author-X-Name-First: Wenyu 
Author-X-Name-Last: Zang 
Author-Name: Mark Baimbridge 
Author-X-Name-First: Mark 
Author-X-Name-Last: Baimbridge 
Title: Exports, imports and economic growth in South Korea and Japan: a tale of two economies 
Abstract:
  This article investigates the relationship between exports, imports and
 economic growth for South Korea and Japan by constructing a Vector
 Autoregression (VAR) model. Causality is examined between real Gross
 Domestic Product (GDP), real exports and real imports. Several principal
 results emerge from the empirical work. First, the three variables are
 cointegrated for both countries, implying that a long run steady state
 exists. Second, there is evidence of bidirectional causality between
 imports and economic growth for both countries. Finally, Japan seems to
 experience export-led growth, while GDP growth in South Korea has a
 negative effect on export growth. These contrasting findings could result
 from export goods in Japan exhibiting greater nonprice competitive
 aspects, although their success fails to trigger a virtuous circle since
 growth fails to lead to increased exports, while for South Korea, output
 growth leads to a decrease in export growth suggesting a strong domestic
 market. 
Journal: Applied Economics 
Pages: 361-372 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.508722 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508722 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:361-372




Template-Type: ReDIF-Article 1.0
Author-Name: Michael   L. Marlow 
Author-X-Name-First: Michael   L. 
Author-X-Name-Last: Marlow 
Title: Effectiveness of Massachusetts&#x2019; comprehensive tobacco control program 
Abstract:
  While Massachusetts's comprehensive programme of excise taxes, smoking
 bans and tobacco control has been argued to have significantly lowered
 cigarette consumption, this is the first study to examine the
 comprehensive nature of its programme and to control for factors other
 than tobacco programmes themselves while examining effects on taxed
 cigarette sales. Examination indicates strong support for the hypotheses
 that taxed sales in Massachusetts declined due to price increases, changes
 in income and smuggling. There is very limited support for the hypothesis
 that tobacco control spending or smoking bans contributed to falling
 cigarette sales. Possibilities are discussed that may explain why this
 study does not support most previous studies. These include failure to
 control for numerous factors that probably also influenced sales, that
 effects of tobacco control programmes might differ between states and that
 previous studies examined shorter time periods. It is hoped that this
 article will foster further examination of these issues so that we can
 better understand effectiveness of comprehensive tobacco control
 programmes when formulating recommendations about how governments should
 allocate their scarce resources towards such programmes. 
Journal: Applied Economics 
Pages: 373-385 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.508723 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508723 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:373-385




Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Banfi 
Author-X-Name-First: Silvia 
Author-X-Name-Last: Banfi 
Author-Name: Massimo Filippini 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Filippini 
Author-Name: Andrea Horeh&#xE1;jov&#xE1; 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Horeh&#xE1;jov&#xE1; 
Title: Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog 
Abstract:
  Traffic noise, air pollution and electromagnetic pollution (i.e.
 nonionizing radiation, also called electrosmog) are typical negative local
 externalities in urban areas. They are side effects of human and economic
 activities (e.g. road transport, telecommunication) and they affect
 individuals&#x2019; well being negatively without compensation. In recent
 years, the increased number of mobile phone antennas in residential areas,
 and thus the increased intensity of radiated power, has aroused public
 concern, discussions and protests. The view of an antenna is annoying an
 increasing number of inhabitants. In this article, the stated Choice
 Experiment (CE) is used to estimate the Willingness To Pay (WTP) residents
 in the cities of Zurich and Lugano place on the reduction of these three
 environmental loads. Estimation results reveal that there is a positive
 and significant WTP for a reduction of air pollution and traffic noise
 levels to those limit values fixed by the government. Respondents also
 show WTP for reducing electrosmog and removing mobile phone antennas from
 their view, however to a lesser extent. In addition, this is the first
 study that estimates the benefit of a reduction of electrosmog using a CE. 
Journal: Applied Economics 
Pages: 387-397 
Issue: 3 
Volume: 44 
Year: 2012 
Month: 1 
X-DOI: 10.1080/00036846.2010.508724 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508724 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:3:p:387-397




Template-Type: ReDIF-Article 1.0
Author-Name: &#x160;tefan Bojnec 
Author-X-Name-First: &#x160;tefan 
Author-X-Name-Last: Bojnec 
Author-Name: Imre Fert&#x151; 
Author-X-Name-First: Imre 
Author-X-Name-Last: Fert&#x151; 
Title: Complementarities of trade advantage and trade competitiveness measures 
Abstract:
  The complementarities of trade advantage and trade competitiveness
 measures for agro food trade of five Central European (CE-5) countries
 with the European Union are analysed. The stability and duration of the
 trade measures over time is investigated by the survival analysis using
 the nonparametric Kaplan--Meier product limit estimator, and the
 consistency test between the trade measures is conducted by the stratified
 Cox proportional hazard model. The CE-5 countries experienced a greater
 number of products with relative trade disadvantages and greater
 significance of one way imports. Unlike the Czech Republic, Poland,
 Slovakia and Slovenia, Hungary experienced Relative Trade Advantages
 (RTAs) for bulk raw commodities, processed intermediates and horticulture,
 with the greatest significance of successful quality competition and
 one-way exports, and the lowest significance of unsuccessful price and
 unsuccessful quality competition. The duration of RTAs is longer than the
 duration for the successful trade competition categories. Our results
 confirm that the RTA is consistent with the one way export and the
 successful price and successful quality competition categories in two way
 trade on one side, and the relative trade disadvantage with the one way
 import and the unsuccessful price and unsuccessful quality competition on
 the other. 
Journal: Applied Economics 
Pages: 399-408 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508725 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508725 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:399-408




Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim 
Author-X-Name-First: Dong-Hyeon 
Author-X-Name-Last: Kim 
Author-Name: Shu-Chin Lin 
Author-X-Name-First: Shu-Chin 
Author-X-Name-Last: Lin 
Title: Trade and income at different stages of economic development 
Abstract:
  Recent research has found a strong positive effect of international trade
 on real income. We propose that this relationship may vary with the level
 of economic development. Using the instrument variable threshold
 regressions approach proposed by Caner and Hansen (2004), we find evidence
 that trade openness contributes to uneven development. Greater trade
 openness tends to have beneficial effects on real income for more
 industrialized countries. For less developed countries, however, trade
 openness appears to influence real income in a significantly negative way.
 The findings imply that greater international trade and integration may
 foster inequality of nations and hence contribute to more diverging
 economies. 
Journal: Applied Economics 
Pages: 409-421 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508726 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508726 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:409-421




Template-Type: ReDIF-Article 1.0
Author-Name: Alex   YiHou Huang 
Author-X-Name-First: Alex   YiHou 
Author-X-Name-Last: Huang 
Title: Volatility forecasting by quantile regression 
Abstract:
  Quantile regression allows one to predict the volatility of time series
 without assuming an explicit form for the underlying distribution.
 Financial assets are known to have irregular return patterns; not only the
 volatility but also the distribution functions themselves may vary with
 time, so traditional time series models are often unreliable. This study
 presents a new approach to volatility forecasting by quantile regression
 utilizing a uniformly spaced series of estimated quantiles. The proposed
 method provides much more complete information on the underlying
 distribution, without recourse to an assumed functional form. Based on an
 empirical study of seven stock indices, using 16 years of daily return
 data, the proposed approach produces better volatility forecasts for six
 of the seven indices. 
Journal: Applied Economics 
Pages: 423-433 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508727 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508727 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:423-433




Template-Type: ReDIF-Article 1.0
Author-Name: Fr餩ric Laurin 
Author-X-Name-First: Fr餩ric 
Author-X-Name-Last: Laurin 
Title: Trade and regional growth in Spain: panel cointegration in a small sample 
Abstract:
  In this article, we test for the existence of a relationship between per
 capita Gross Domestic Product (GDP) and trade, for 15 Spanish Autonomous
 Communities between 1988 and 2004, using a panel cointegration
 methodology. In particular, we implement several panel unit root tests
 (Maddala and Wu, 1999; Levin <italic>et&#xA0;al</italic>., 2002; Im
 <italic>et&#xA0;al</italic>., 2003) and panel cointegration tests
 (Pedroni, 1999, 2004), with a special attention to their behaviour in a
 small sample. We also develop a Seemingly Unrelated Regression Estimation
 (SURE) residual based test, in order to explicitly take into account the
 cross regional correlation pattern. Appropriate confidence intervals are
 estimated with a sieve bootstrap designed for our small time sample,
 preserving the dependence structure among cross sectional units. Our
 cointegration tests reject the existence of a significant relationship
 between GDP per capita and exports. However, we do find some evidence of a
 significant relationship between GDP per capita and imports or with total
 trade. 
Journal: Applied Economics 
Pages: 435-447 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508728 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508728 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:435-447




Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Nautz 
Author-X-Name-First: Dieter 
Author-X-Name-Last: Nautz 
Author-Name: Juliane Scharff 
Author-X-Name-First: Juliane 
Author-X-Name-Last: Scharff 
Title: Inflation and relative price variability in the euro area: evidence from a panel threshold model 
Abstract:
  The impact of inflation on Relative Price Variability (RPV) generates an
 important channel for real effects of inflation. This article provides
 first evidence on the empirical relation between inflation and RPV in the
 euro area. Stirred by the widespread use of inflation caps or target bands
 in monetary policy practice, we are particularly interested in threshold
 effects of inflation. In line with the predictions of monetary search
 models, our results indicate that expected inflation significantly
 increases RPV only if inflation is either very low (below 0.95% per annum
 (p.a.)) or very high (above 4.96% p.a.). 
Journal: Applied Economics 
Pages: 449-460 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508729 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508729 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:449-460




Template-Type: ReDIF-Article 1.0
Author-Name: Sang   H. Lee 
Author-X-Name-First: Sang   H. 
Author-X-Name-Last: Lee 
Author-Name: John Levendis 
Author-X-Name-First: John 
Author-X-Name-Last: Levendis 
Author-Name: Luis Gutierrez 
Author-X-Name-First: Luis 
Author-X-Name-Last: Gutierrez 
Title: Telecommunications and economic growth: an empirical analysis of sub-Saharan Africa 
Abstract:
  We examine the effect of mobile cellular phones on economic growth in
 sub-Saharan Africa where a marked asymmetry is present between land line
 penetration and mobile telecommunications expansion. This study extends
 previous research along two important dimensions. First, we allow for the
 potential endogeneity between economic growth and telecommunications
 expansion by employing a special linear Generalized Method of Moments
 (GMM) estimator. Second, we explicitly model for varying degrees of
 substitutability between mobile cellular and land line telephony, so that
 greater expansion of mobile telecommunications can have a different impact
 whenever the level of land line penetration differs. We find that mobile
 cellular phone expansion is an important determinant of the rate of
 economic growth in sub-Saharan Africa. Moreover, we find that the
 contribution of mobile cellular phones to economic growth has been growing
 in importance in the region, and that the marginal impact of mobile
 telecommunication services is even greater wherever land line phones are
 rare. Given the low cost of mobile telecommunications technology relative
 to other broad infrastructure projects, especially land line
 infrastructure, we advocate that mobile telecommunication services be
 encouraged in the area. 
Journal: Applied Economics 
Pages: 461-469 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508730 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:461-469




Template-Type: ReDIF-Article 1.0
Author-Name: Christian   Volpe Martincus 
Author-X-Name-First: Christian   Volpe 
Author-X-Name-Last: Martincus 
Author-Name: Jer&#xF3;nimo Carballo 
Author-X-Name-First: Jer&#xF3;nimo 
Author-X-Name-Last: Carballo 
Author-Name: Pablo   M. Garcia 
Author-X-Name-First: Pablo   M. 
Author-X-Name-Last: Garcia 
Title: Public programmes to promote firms&#x2019; exports in developing countries: are there heterogeneous effects by size categories? 
Abstract:
  Several countries have implemented programmes to support their
 firms&#x2019; internationalization efforts. Their impacts are likely to be
 heterogeneous over firm size categories because these programmes are
 primarily intended and expected to benefit smaller companies. Whether this
 is or not the case is still an open question. In this article, we aim at
 filling this gap in the literature by providing evidence on the effects of
 trade promotion programmes on the export performance of firms within
 different size segments using a rich firm level dataset for Argentina over
 the period 2002 to 2006. We find that these effects are indeed larger for
 smaller firms. 
Journal: Applied Economics 
Pages: 471-491 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508731 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508731 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:471-491




Template-Type: ReDIF-Article 1.0
Author-Name: Heather   L. R. Tierney 
Author-X-Name-First: Heather   L. R. 
Author-X-Name-Last: Tierney 
Title: Examining the ability of core inflation to capture the overall trend of total inflation 
Abstract:
  This article examines whether core inflation is able to predict the
 overall trend of total inflation using real-time data in a parametric and
 nonparametric framework. Specifically, two sample periods and five
 in-sample forecast horizons in two measures of inflation, which are the
 Personal Consumption Expenditure (PCE) and the Consumer Price Index (CPI),
 are used in the exclusions-from-core inflation persistence model. This
 article finds that core inflation is only able to capture the overall
 trend of total inflation for the 12-quarter in-sample forecast horizon
 using the CPI in both the parametric and nonparametric models in the
 longer sample period. The nonparametric model outperforms the parametric
 model for both data samples and for all five in-sample forecast horizons. 
Journal: Applied Economics 
Pages: 493-514 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508732 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:493-514




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher   F. Baum 
Author-X-Name-First: Christopher   F. 
Author-X-Name-Last: Baum 
Author-Name: Atreya Chakraborty 
Author-X-Name-First: Atreya 
Author-X-Name-Last: Chakraborty 
Author-Name: Liyan Han 
Author-X-Name-First: Liyan 
Author-X-Name-Last: Han 
Author-Name: Boyan Liu 
Author-X-Name-First: Boyan 
Author-X-Name-Last: Liu 
Title: The effects of uncertainty and corporate governance on firms&#x2019; demand for liquidity 
Abstract:
  We find that US corporations&#x2019; demand for liquidity is sensitive to
 two important factors: uncertainty facing the firm and the quality of
 corporate governance. Following prior research, we find that both factors
 have important influences on firms&#x2019; cash holdings. Our results also
 indicate that the interactions between uncertainty and governance measures
 are significant. From a policy perspective, these new findings indicate
 that both governance and the nature of uncertainty may play an important
 role in managing liquidity risks. Policy recommendations may not only be
 limited to changes in financial policy but may also include changes in
 corporate governance. 
Journal: Applied Economics 
Pages: 515-525 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508733 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:515-525




Template-Type: ReDIF-Article 1.0
Author-Name: Michael   P. Kidd 
Author-X-Name-First: Michael   P. 
Author-X-Name-Last: Kidd 
Author-Name: Renuka Metcalfe 
Author-X-Name-First: Renuka 
Author-X-Name-Last: Metcalfe 
Author-Name: Peter   J. Sloane 
Author-X-Name-First: Peter   J. 
Author-X-Name-Last: Sloane 
Title: The determinants of hiring older workers in Britain revisited: an analysis using WERS 2004 
Abstract:
  This article reexamines the role of specific human capital and back
 loading of compensation as deterrents to hiring older workers. We utilize
 the framework initially suggested by Hutchens (1986) and more recently
 implemented by Daniel and Heywood (2007). This approach identifies the
 extent to which firms hire older workers at a rate less than full
 replacement would imply. Using the 2004 British Workplace Employment
 Relations Survey, we examine whether a more favourable climate including a
 much tighter UK labour market combined with the abandonment of defined
 benefit pension schemes has increased the tendency to hire older workers.
 We also examine the impact of private health insurance. 
Journal: Applied Economics 
Pages: 527-536 
Issue: 4 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.508734 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508734 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:4:p:527-536




Template-Type: ReDIF-Article 1.0
Author-Name: Hans-J&#xFC;rgen Engelbrecht 
Author-X-Name-First: Hans-J&#xFC;rgen 
Author-X-Name-Last: Engelbrecht 
Title: Some empirics of the bivariate relationship between average subjective well-being and the sustainable wealth of nations 
Abstract:
  The World Bank's Millennium Capital Assessment (MCA) has provided per
 capita estimates of total wealth and its major subcategories for a large
 number of countries. In this article, these macro-level estimates are used
 to explore bivariate cross-country &#x2018;wealth--happiness&#x2019;
 relationships, focussing on issues of appropriate functional form,
 parameter stability and outliers. For comparative purposes,
 &#x2018;income--happiness&#x2019; relationships are also explored. Total
 wealth turns out to be strongly related to Gross National Income (GNI) per
 capita, due to the importance of produced and intangible capital, but not
 to natural capital. In contrast, when the most natural capital intensive
 countries are excluded as outliers, a strong relationship emerges between
 Subjective Well-Being (<italic>SWB</italic>) and natural capital,
 especially amongst high income countries. In these countries, natural
 capital seems to be an important wealth correlate of <italic>SWB</italic>,
 despite accounting for only a very small proportion of total wealth. 
Journal: Applied Economics 
Pages: 537-554 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.510464 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.510464 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:537-554




Template-Type: ReDIF-Article 1.0
Author-Name: Steve Cook 
Author-X-Name-First: Steve 
Author-X-Name-Last: Cook 
Title: An historical perspective on the forecasting performance of the Treasury Model: forecasting the growth in UK consumers&#x2019; expenditure 
Abstract:
  Drawing upon <italic>Treasury Official Economic Forecasts Vols. I &
 II</italic>, a series of Treasury Model (TM) forecasts of the percentage
 growth in real total consumers&#x2019; expenditure are derived for the
 period 1967 to 1989. The one-, two- and three-step ahead forecasts
 examined cover an interesting period which includes major shocks to the UK
 economy, business cycle effects and changes in economic policy. Whilst a
 battery of forecast evaluation statistics and tests do not detect any
 evidence of forecast bias or irrationality over the whole sample,
 split-sample analysis provides evidence of a switch from overprediction to
 underprediction around 1977. In addition, the application of
 &#x2018;modified&#x2019; versions of Holden--Peel (1990) tests provides
 evidence of the longest horizon forecasts failing to capture the full
 movement of changes in consumption growth. Using simple regression and a
 selection of forecast encompassing tests, shorter horizon forecasts are
 found to dominate longer horizon forecasts, a feature which might be
 expected logically, but need not occur in practice. Finally, forecast
 performance is related to changes in model specification and modelling
 methodology. 
Journal: Applied Economics 
Pages: 555-563 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.510465 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.510465 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:555-563




Template-Type: ReDIF-Article 1.0
Author-Name: B.   Bhaskara Rao 
Author-X-Name-First: B.   Bhaskara 
Author-X-Name-Last: Rao 
Author-Name: Gazi   Mainul Hassan 
Author-X-Name-First: Gazi   Mainul 
Author-X-Name-Last: Hassan 
Title: An analysis of the determinants of the long-run growth rate of Bangladesh 
Abstract:
  This article develops a framework to analyse the determinants of the long
 term growth rate of Bangladesh. It is based on the Solow (1956) growth
 model and its extension by Mankiw <italic>et&#xA0;al</italic>. (1992) and
 follows Senhadji's (2000) growth accounting procedure to estimate Total
 Factor Productivity (TFP). Our Growth Accounting Exercise (GAE) shows that
 growth rate in Bangladesh, until the 1990s was primarily due to factor
 accumulation. Since then, however, <italic>TFP</italic> has made a small
 positive contribution. Using our results on the determinants of
 <italic>TFP,</italic> we also examine policy options to double per capita
 income of Bangladesh in about 15 years. 
Journal: Applied Economics 
Pages: 565-580 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.510466 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.510466 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:565-580




Template-Type: ReDIF-Article 1.0
Author-Name: R. Dixon 
Author-X-Name-First: R. 
Author-X-Name-Last: Dixon 
Author-Name: G. Lim 
Author-X-Name-First: G. 
Author-X-Name-Last: Lim 
Title: A univariate model of aggregate labour productivity 
Abstract:
  A model of labour productivity that distinguishes between permanent and
 transient shocks on productivity is proposed. We show that this model is a
 type of unobserved components model -- a random walk with drift plus noise
 model. The advantage of this approach is that it provides a coherent
 framework to identify the deterministic trend growth component and also
 the productivity-enhancing (or technology-related) stochastic components.
 The model is applied to aggregate labour productivity in Australia, and
 the time series of technology shocks extracted sheds some light on the
 contributions of policy reforms to productivity. 
Journal: Applied Economics 
Pages: 581-585 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/13504851.2010.511991 
File-URL: http://hdl.handle.net/10.1080/13504851.2010.511991 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:581-585




Template-Type: ReDIF-Article 1.0
Author-Name: Bahro   A. Berhan 
Author-X-Name-First: Bahro   A. 
Author-X-Name-Last: Berhan 
Author-Name: Glenn   P. Jenkins 
Author-X-Name-First: Glenn   P. 
Author-X-Name-Last: Jenkins 
Title: The self-imposed embargo: customs-related transaction costs of North Cyprus 
Abstract:
  Customs-related transaction costs are a major barrier to the expansion of
 international trade. These costs are a financial burden to importers and
 ultimately to consumers. This study measures the transaction costs that
 are created by the obsolete customs and port handling procedures in North
 Cyprus. Such an analysis is important because since 1974 North Cyprus has
 suffered under a direct trade embargo. All its imports and exports must
 come or go via the ports in Turkey. This study finds that excessive trade
 transaction costs inflicted by the inefficient port handling and customs
 services of North Cyprus is between 1.42 to 2.96 times as costly as the
 extra transportation costs caused by the international embargo on its
 direct trade with the rest of the world. 
Journal: Applied Economics 
Pages: 587-597 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.511992 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.511992 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:587-597




Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar 
Author-X-Name-First: Saten 
Author-X-Name-Last: Kumar 
Author-Name: Don   J. Webber 
Author-X-Name-First: Don   J. 
Author-X-Name-Last: Webber 
Author-Name: Scott Fargher 
Author-X-Name-First: Scott 
Author-X-Name-Last: Fargher 
Title: Testing the validity of the Feldstein--Horioka puzzle for Australia 
Abstract:
  This article presents the details of an investigation into the
 relationship between investment and savings in Australia over the period
 1960 to 2007. Using five time series techniques our results reveal that
 the Feldstein--Horioka puzzle exists in a weak form, with a lower saving
 retention coefficient. Granger causality tests illustrate that savings
 Granger causes investment, both in the short and long runs. Our results
 suggest Australia could effectively adopt policies that focus on
 increasing investment through increasing domestic savings. 
Journal: Applied Economics 
Pages: 599-605 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.511993 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.511993 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:599-605




Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar 
Author-X-Name-First: Saten 
Author-X-Name-Last: Kumar 
Author-Name: Don   J. Webber 
Author-X-Name-First: Don   J. 
Author-X-Name-Last: Webber 
Author-Name: Scott Fargher 
Author-X-Name-First: Scott 
Author-X-Name-Last: Fargher 
Title: Wagner's Law revisited: cointegration and causality tests for New Zealand 
Abstract:
  Wagner's Law states that the share of government expenditure in Gross
 National Product (GNP) will increase with economic development; many
 associated empirical studies substitute GNP with Gross Domestic Product
 (GDP). This article presents an empirical investigation into the validity
 of Wagner's Law for New Zealand over the period 1960 to 2007 and compares
 the results obtained using these two measures of output. Application of
 the Autoregressive Distributed Lag (ARDL) bounds test suggests a
 cointegrating relationship between either output measure and the share of
 government spending, and further application of General to Specific
 (GETS), Engle and Granger (EG), Phillip Hansen's Fully Modified Ordinary
 Least Squares (FMOLS) and Johansen's time series techniques illustrate
 statistical robustness and an income elasticity between 0.56 and 0.84. The
 results suggest that output measures Granger cause the share of government
 expenditure in the long run, thereby providing support for Wagner's Law,
 and these results are stable irrespective of the chosen output measure. 
Journal: Applied Economics 
Pages: 607-616 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.511994 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.511994 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:607-616




Template-Type: ReDIF-Article 1.0
Author-Name: Ant&#xF3;nio   Portugal Duarte 
Author-X-Name-First: Ant&#xF3;nio   Portugal 
Author-X-Name-Last: Duarte 
Author-Name: Jo&#xE3;o   Sousa Andrade 
Author-X-Name-First: Jo&#xE3;o   Sousa 
Author-X-Name-Last: Andrade 
Title: How the Gold Standard functioned in Portugal: an analysis of some macroeconomic aspects 
Abstract:
  Portugal was the first country in Europe to join Great Britain in the
 Gold Standard, in 1854, having abandoned the principle of free gold
 convertibility in 1891. By elucidating the historical choice of the Gold
 Standard by the Portuguese authorities, and analysing its macroeconomic
 behaviour, we prove that it is a mistake to compare different monetary
 systems with the same indicators. Our examination of demand, supply and
 monetary shocks in the context of a Vector Autoregression (VAR) model
 confirm the idea of appropriate application of the principles of classical
 economics to the Gold Standard in Portugal. We also prove that the
 principles of demand management were not compatible with the functioning
 of the Gold Standard. 
Journal: Applied Economics 
Pages: 617-629 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.513675 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.513675 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:617-629




Template-Type: ReDIF-Article 1.0
Author-Name: Hyeyoen Kim 
Author-X-Name-First: Hyeyoen 
Author-X-Name-Last: Kim 
Title: Large data sets, nonlinearity and the speed of adjustment to real exchange rate shocks 
Abstract:
  A well known puzzle in international finance concerns the very slow
 speeds of adjustment of real exchange rates observed in response to
 shocks. In this article, we explore whether allowing for a wide range of
 influences on the real exchange rate in a nonlinear framework can help
 resolve this puzzle. Using, recently proposed econometric methods for
 summarizing very large macroeconomic data sets into a small number of
 observable factors, we find that there is a long run relationship between
 these factors and real exchange rates. When put into a nonlinear
 framework, we find that allowing for the effects of macroeconomic factors
 dramatically increases the measured speed of adjustment of the real
 exchange rate. 
Journal: Applied Economics 
Pages: 631-639 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.513676 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.513676 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:631-639




Template-Type: ReDIF-Article 1.0
Author-Name: Sheikh Selim 
Author-X-Name-First: Sheikh 
Author-X-Name-Last: Selim 
Title: Labour productivity and rice production in Bangladesh: a stochastic frontier approach 
Abstract:
  In this article, we examine the significance of labour productivity and
 use of inputs in explaining technical efficiency of rice production in
 Bangladesh. We find that higher labour productivity can stimulate high
 efficiency gains, but increased use of inputs (except land) induces
 negative marginal effect on technical efficiency. While more use of land,
 improved seeds and fertilizers contributes to the rate of labour
 productivity induced marginal efficiency gain, any additional labour
 depresses this rate. Given the agricultural policy reform history in
 Bangladesh, our findings imply that rather than providing input subsidy or
 output price support, future reforms should put more emphasis on providing
 incentives to enhance labour productivity and encourage formalization of
 the agricultural labour market. 
Journal: Applied Economics 
Pages: 641-652 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.515203 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.515203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:641-652




Template-Type: ReDIF-Article 1.0
Author-Name: Tuvshintugs Batdelger 
Author-X-Name-First: Tuvshintugs 
Author-X-Name-Last: Batdelger 
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: Determinants of the current account balance in the United States 
Abstract:
  This article studies the role of public and private imbalances in the
 behaviour of the current account balance in the United States in the
 context of an intertemporal model. The estimation evaluates the effects of
 public and private imbalances on the dynamics of the current account.
 Correlation coefficients support the Ricardian equivalence. Higher budget
 deficit correlates with a reduction in private consumption and an increase
 in private savings. Government saving does not vary significantly with
 macroeconomic variables in the short- or in the long-run. In contrast,
 fluctuations in government investment vary significantly with a number of
 economic variables in the long- and in the short-run. Accordingly,
 fluctuations in the budget deficit are likely to be driven by fluctuations
 in public investment. In contrast to government savings, private savings
 vary significantly with macro variables in the long- and in the short-run.
 Fluctuations in private investment appear less evident compared to that in
 private savings. Overall, fluctuations in the current account balance
 appear to be more tied to movements in the budget deficit. Nonetheless,
 fluctuations in the budget deficit are moderated by an increase in private
 savings and a reduction in private investment, moderating fluctuations in
 the current account balance. 
Journal: Applied Economics 
Pages: 653-669 
Issue: 5 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.518950 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.518950 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:5:p:653-669




Template-Type: ReDIF-Article 1.0
Author-Name: B.   Bhaskara Rao 
Author-X-Name-First: B.   Bhaskara 
Author-X-Name-Last: Rao 
Author-Name: Arusha Cooray 
Author-X-Name-First: Arusha 
Author-X-Name-Last: Cooray 
Title: How useful is growth literature for policies in the developing countries? 
Abstract:
  Growth literature has focused mainly on the long-term growth outcomes,
 but policy makers of the developing economies need rapid improvements in
 the short- to medium-term growth rates. In this article, we argue that
 this widening gap can be reduced by distinguishing between the short- to
 medium-term growth effects of policies from their long-run growth effects.
 With data from Singapore, Malaysia and Thailand, we show that an extended
 Solow (1956) model can narrow this gap. We find that the short to medium
 term growth effects of an increase in the investment ratio are quite
 significant and persist for up to 10 years. 
Journal: Applied Economics 
Pages: 671-681 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.517188 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.517188 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:671-681




Template-Type: ReDIF-Article 1.0
Author-Name: Jakob   B. Madsen 
Author-X-Name-First: Jakob   B. 
Author-X-Name-Last: Madsen 
Author-Name: Ratbek Dzhumashev 
Author-X-Name-First: Ratbek 
Author-X-Name-Last: Dzhumashev 
Title: The equity premium and the required stock returns in a Tobin's q model with a stochastic discount factor 
Abstract:
  Based on the production-based Capital Asset Pricing Model (CAPM)
 principle, this article shows that earnings per unit of capital and the
 output capital ratio are excellent measures of expected stock returns
 because they are only temporarily affected by earnings shocks but affected
 permanently by changes in required share returns. Evidence for the US
 suggests that the risk premium is currently about 2% and that the
 covariance between consumption growth and expected returns is
 substantially lower than previously thought of; thus, reducing the equity
 puzzle substantially. 
Journal: Applied Economics 
Pages: 683-694 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.518755 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.518755 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:683-694




Template-Type: ReDIF-Article 1.0
Author-Name: Yir-Hueih Luh 
Author-X-Name-First: Yir-Hueih 
Author-X-Name-Last: Luh 
Author-Name: Fung-Mey Huang 
Author-X-Name-First: Fung-Mey 
Author-X-Name-Last: Huang 
Author-Name: Yu-Ning Chien 
Author-X-Name-First: Yu-Ning 
Author-X-Name-Last: Chien 
Author-Name: Chen-Chih Lo 
Author-X-Name-First: Chen-Chih 
Author-X-Name-Last: Lo 
Title: Organizational learning differences in healthcare services: the case of medical centres in Taiwan 
Abstract:
  This study presents an individual-based evaluation of the within- and
 between-organization learning differences in Taiwan's medical centres.
 Drawn from Taiwan's National Health Insurance Research (NHIR) database, a
 sample of 32 285 Laparoscopic Cholecystectomy (LC) surgery cases performed
 in all 18 medical centres during the period 1998 to 2004 is analysed. All
 the medical centres in Taiwan are Not-For-Profit (NFP) in nature. This
 study thus provides a clear-cut delineation of the learning differences
 between public and private hospitals. The individual-based approach
 creates surgeon-specific learning distributions within each institution
 through a parametric estimation of the hyperbolic model, after controlling
 for patients&#x2019; heterogeneity. Investigation of the within- and
 between-hospital learning differences is accomplished through two
 nonparametric tests. The results indicate both within- and
 between-organization learning differences. Compared to senior surgeons, an
 overall dominance of learning effects among junior surgeons is found.
 Furthermore, the between-organization comparisons indicate junior surgeons
 affiliated with private hospitals learn faster than their peers in public
 hospitals. This suggests potential learning differences in terms of
 hospital costs may result from hospital ownership. 
Journal: Applied Economics 
Pages: 695-706 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.518943 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.518943 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:695-706




Template-Type: ReDIF-Article 1.0
Author-Name: Matt   E. Ryan 
Author-X-Name-First: Matt   E. 
Author-X-Name-Last: Ryan 
Author-Name: Marshall Gramm 
Author-X-Name-First: Marshall 
Author-X-Name-Last: Gramm 
Author-Name: Nicholas McKinney 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: McKinney 
Title: Information effects in major league baseball betting markets 
Abstract:
  Previous studies point to a generally efficient baseball betting market
 with no profitable betting strategies. However, failure to consider the
 time of year in which the bets are placed neglects differences in
 available information throughout the season. This analysis largely
 confirms the general efficiency of the major league baseball betting
 market by existing measures; however, incorporating the time of the year
 in which the bet is made generates persistent profitable betting
 strategies. The process by which information impacts returns is
 considered; increasing difficulties in determining the true favourite
 likely play the largest role, while assessing the exact favourite underdog
 relationship also has an impact. 
Journal: Applied Economics 
Pages: 707-716 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.518951 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.518951 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:707-716




Template-Type: ReDIF-Article 1.0
Author-Name: Diansheng Dong 
Author-X-Name-First: Diansheng 
Author-X-Name-Last: Dong 
Author-Name: Todd   M. Schmit 
Author-X-Name-First: Todd   M. 
Author-X-Name-Last: Schmit 
Author-Name: Harry Kaiser 
Author-X-Name-First: Harry 
Author-X-Name-Last: Kaiser 
Title: Modelling household purchasing behaviour to analyse beneficial marketing strategies 
Abstract:
  Price promotion and generic advertising are two common strategies to
 increase consumer demand for food products. Which one is preferred over
 the other depends largely, on the relative importance of state dependence
 and heterogeneity in household purchase decision and behaviour on desired
 commodity over time. In this article, this issue is investigated for
 household purchases of fluid milk products using a panel data dynamic
 Tobit model. The proposed econometric model accounts not only for state
 dependence and heterogeneity of the purchasing process, but also for the
 censoring or sample selectivity encountered when using household survey
 data. Empirical findings show that state dependence is negative and
 household heterogeneity over milk persists over time implying that
 advertising efforts aimed at increasing milk consumption would be more
 effective than short-term price promotions. The results also suggest that
 advertising efforts should concentrate on attracting new purchasers and
 increasing purchase frequencies for fluid milk products. 
Journal: Applied Economics 
Pages: 717-725 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.522521 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522521 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:717-725




Template-Type: ReDIF-Article 1.0
Author-Name: Danny Leung 
Author-X-Name-First: Danny 
Author-X-Name-Last: Leung 
Author-Name: Yi Zheng 
Author-X-Name-First: Yi 
Author-X-Name-Last: Zheng 
Title: What affects MFP in the long-run? Evidence from Canadian industries 
Abstract:
  Using data on 12 Canadian industries for 1976--2003, this study employs a
 dynamic panel error correction model to establish the relative importance
 of potential determinants of Multifactor Productivity (MFP). The model
 restricts the long run coefficients of these factors to be the same across
 industries, but allows industry heterogeneity in the short-run
 coefficients. After controlling for capacity utilization, Information and
 Communications Technologies (ICT) capital, outsourcing and global trade
 openness are found to have a statistically significant positive effect on
 MFP. The long run impact of ICT is small, but its recent contribution to
 MFP growth is sizeable for some industries, possibly reflecting the
 delayed benefits of the ICT investment surge in the late 1990s due to
 adjustment costs. Global trade openness and industry outsourcing generally
 raises MFP. 
Journal: Applied Economics 
Pages: 727-738 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.522522 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522522 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:727-738




Template-Type: ReDIF-Article 1.0
Author-Name: Colin Hunt 
Author-X-Name-First: Colin 
Author-X-Name-Last: Hunt 
Title: The interaction of public and private capital: a study of 20 OECD members 
Abstract:
  This article addresses the interaction of public and private capital
 stocks. We show for most developed countries that there is a long-term
 equilibrium relation between public and private capital. We find that
 imbalances in the relation of public and private capital are most likely
 to be corrected through a public capital adjustment. Private capital tends
 towards weak exogeneity. The evidence presented suggests that public
 investment is more likely to be enticed by private investment rather than
 serve to crowd out private investment activity. 
Journal: Applied Economics 
Pages: 739-764 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.522523 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522523 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:739-764




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaodong Du 
Author-X-Name-First: Xiaodong 
Author-X-Name-Last: Du 
Author-Name: David   A. Hennessy 
Author-X-Name-First: David   A. 
Author-X-Name-Last: Hennessy 
Title: The planting real option in cash rent valuation 
Abstract:
  After entering into a farmland cash rent contract in the fall, a tenant
 farmer has flexibility over the spring crop choice and the input
 application level. Failure to account for these options will bias
 estimates of what farmers should pay to rent land. Applying Monte Carlo
 simulation methods, this study investigates the option values for these
 choices. A Multivariate Gaussian Copula (MGC) is employed to account for
 dependence among yields and prices. Results show that the average cash
 rent valuation for the real option approach is $33.6 higher than that for
 the conventional Net Present Value (NPV) method, in which the input
 intensity option is $0.9. Crop planting sequence is shown to impact the
 real option value. 
Journal: Applied Economics 
Pages: 765-776 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.522524 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522524 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:765-776




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriella   Sj&#xF6;gren Lindquist 
Author-X-Name-First: Gabriella   Sj&#xF6;gren 
Author-X-Name-Last: Lindquist 
Author-Name: Jenny S&#xE4;ve-S&#xF6;derbergh 
Author-X-Name-First: Jenny 
Author-X-Name-Last: S&#xE4;ve-S&#xF6;derbergh 
Title: Securing victory or not? Surrendering optimal play when facing simple calculations -- a natural experiment from the Swedish and US Jeopardy 
Abstract:
  This article empirically investigates the common assumption of economic
 agents&#x2019; capabilities to process complex mathematical problems to
 find optimal strategies applied in economic modelling. By exploiting a
 design difference in the game show <italic>Jeopardy</italic> between the
 US and Sweden, we obtain a natural experiment of individuals facing an
 optimization decision either having explicit information or deriving it by
 noncomplex adding and subtracting. Given the assumption that individuals
 compute optimally, there should be no difference in the strategies used.
 Yet, the results show that even a small change in informational
 pre-conditions for obtaining an optimal strategy strongly alters
 economic-decision making. 
Journal: Applied Economics 
Pages: 777-783 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.522525 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:777-783




Template-Type: ReDIF-Article 1.0
Author-Name: Franklin   G. Mixon 
Author-X-Name-First: Franklin   G. 
Author-X-Name-Last: Mixon 
Author-Name: Ernest   W. King 
Author-X-Name-First: Ernest   W. 
Author-X-Name-Last: King 
Title: Helping Hispanic-America vote? Ballot technology, voter fatigue and <italic>HAVA 2002</italic>  
Abstract:
  Lott (2009) finds that nonvoted ballot rates for down-ballot races are
 greater than those for presidential races, and newer technologies that
 reduce nonvoted presidential ballots create even greater rates of
 nonvoting down-ballot than the same older voting technologies. The
 conclusion is momentous: adopting voting technologies that minimize
 under-voting in presidential races actually increases under-voting across
 all races on the same ballot. This study extends Lott's by examining the
 Congressional vote on the <italic>Help America Vote Act of 2002</italic>
 (<italic>HAVA 2002</italic>), which established a program to provide funds
 to states in order to replace punch card voting systems with newer
 technologies. We focus on the racial component of Lott's finding,
 specifically that Hispanic-American voters exhibit greater rates of voter
 fatigue than do white voters. This study posits that, given the large
 Hispanic-American populations in California and Texas and their propensity
 to support Democrats in these states, House Democrats from these states
 would not view the <italic>HAVA 2002</italic> as favourably as House
 Democrats from other parts of the US. Among other results presented here,
 the data show that support for <italic>HAVA 2002</italic> among California
 and Texas House Democrats was 11.6 percentage points below that of House
 Democrats from the other 48 states. 
Journal: Applied Economics 
Pages: 785-792 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.522526 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522526 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:785-792




Template-Type: ReDIF-Article 1.0
Author-Name: Christiane Goodfellow 
Author-X-Name-First: Christiane 
Author-X-Name-Last: Goodfellow 
Author-Name: Martin   T. Bohl 
Author-X-Name-First: Martin   T. 
Author-X-Name-Last: Bohl 
Title: Forestalling floor closure: evidence from a natural experiment on the German stock market 
Abstract:
  This article contributes to the debate about the relative qualities of
 floor and electronic trading systems by analysing the effects of bringing
 forward the Xetra closing time from 8.00&#x2009;pm to 5.30&#x2009;pm in
 November 2003, while the Frankfurt floor remains open until
 8.00&#x2009;pm. This natural experiment provides a &#x2018;cleaner&#x2019;
 institutional setting than in Venkataraman (2001), as it enables us to
 investigate trading quality on <italic>both</italic> platforms for the
 <italic>same</italic> stocks in the <italic>same</italic> country before
 and after the event. The empirical evidence suggests that primarily
 institutional investors trading in large stocks transfer to the floor when
 Xetra closes earlier. It appears that investors remain with Xetra for
 informed trading though. 
Journal: Applied Economics 
Pages: 793-802 
Issue: 6 
Volume: 44 
Year: 2012 
Month: 2 
X-DOI: 10.1080/00036846.2010.524626 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524626 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:6:p:793-802




Template-Type: ReDIF-Article 1.0
Author-Name: Kausik Chaudhuri 
Author-X-Name-First: Kausik 
Author-X-Name-Last: Chaudhuri 
Author-Name: Mary   M. Cherical 
Author-X-Name-First: Mary   M. 
Author-X-Name-Last: Cherical 
Title: Credit rationing in rural credit markets of India 
Abstract:
  This article analyses the prevalent situation of the formal Financial
 Institutions (FIs) in rural India using data from National Sample Survey
 54th Round (January--June, 1998). We use sample selectivity model to
 examine the sanction of the loan by the FIs as a two-stage process. We
 model the choice of the household's credit requirement using an unordered
 choice model, namely, a multinomial logit model. Our results reveal that
 the rural households are considerably credit constrained. The households
 who do not have an account in a FI have a lower chance of obtaining the
 loan and households who are credit constrained have relatively lower land
 holding and they do not possess livestock. Households who borrow for
 nonfarm purpose exhibit a lower chance of obtaining credit compared to
 those households who borrow for farm business. Village level
 infrastructure plays an important role in determining the credit rationing
 behaviour in rural India. 
Journal: Applied Economics 
Pages: 803-812 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.524627 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524627 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:803-812




Template-Type: ReDIF-Article 1.0
Author-Name: Marc   D. Hayford 
Author-X-Name-First: Marc   D. 
Author-X-Name-Last: Hayford 
Author-Name: A. G. Malliaris 
Author-X-Name-First: A. G. 
Author-X-Name-Last: Malliaris 
Title: Transparent US monetary policy: theory and tests 
Abstract:
  In 1994, the Federal Reserve System moved to a more transparent reporting
 of monetary policy. This article assesses the impact of monetary policy
 transparency on uncertainty about future monetary policy using T-bill rate
 forecast dispersions and <italic>ex post</italic> forecast errors from the
 Survey of Professional Forecasters as a proxy for monetary policy
 uncertainty. The empirical findings confirm that Federal Reserve
 transparency has reduced the uncertainty about future monetary policy. 
Journal: Applied Economics 
Pages: 813-824 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.524628 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524628 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:813-824




Template-Type: ReDIF-Article 1.0
Author-Name: Winston   Ricardo Moore 
Author-X-Name-First: Winston   Ricardo 
Author-X-Name-Last: Moore 
Author-Name: Denny   M. Lewis-Bynoe 
Author-X-Name-First: Denny   M. 
Author-X-Name-Last: Lewis-Bynoe 
Author-Name: Natalia Morgan 
Author-X-Name-First: Natalia 
Author-X-Name-Last: Morgan 
Title: Inflation starts in Latin America and the Caribbean 
Abstract:
  High rates of inflation are a perennial problem in Latin American and
 Caribbean (LAC) countries. This article attempts to identify the factors
 that initiate these inflationary episodes using observations on 31 LAC
 countries between 1970 and 2006. The study finds that the key determinants
 of inflation starts in the region are demand pressures, oil price shocks,
 elections, transitions to less repressive political regimes and foreign
 inflation. 
Journal: Applied Economics 
Pages: 825-834 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.524629 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524629 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:825-834




Template-Type: ReDIF-Article 1.0
Author-Name: Harald Badinger 
Author-X-Name-First: Harald 
Author-X-Name-Last: Badinger 
Title: Cyclical expenditure policy, output volatility and economic growth 
Abstract:
  This article provides an empirical assessment of the relation between the
 cyclicality of fiscal expenditure policy, output volatility and economic
 growth, using a cross-section of 88 countries over the period 1960 to
 2004. Identification of the effects of (endogenous) cyclical expenditure
 policy is achieved by exploiting the exogeneity of countries&#x2019;
 political and institutional characteristics, which we find to be relevant
 determinants of the cyclicality of expenditures. There are three main
 results: first, both pro- and countercyclical expenditure policy amplify
 output volatility, much in a way like pure fiscal shocks; second, output
 volatility, due to variations in cyclical and discretionary fiscal policy,
 is negatively associated with economic growth; third, there is no direct
 effect of cyclicality on economic growth other than through output
 volatility. 
Journal: Applied Economics 
Pages: 835-851 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.524630 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524630 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:835-851




Template-Type: ReDIF-Article 1.0
Author-Name: Sami Bibi 
Author-X-Name-First: Sami 
Author-X-Name-Last: Bibi 
Author-Name: Paul Makdissi 
Author-X-Name-First: Paul 
Author-X-Name-Last: Makdissi 
Author-Name: Myra Yazbeck 
Author-X-Name-First: Myra 
Author-X-Name-Last: Yazbeck 
Title: Equivalence scales and housing deprivation orderings: an example using Lebanese data 
Abstract:
  Housing deprivation orderings raise challenges as far as measurement is
 concerned. The first challenge resides in the identification of an
 adequate variable that characterizes housing services consumed by
 households. Another challenge may arise in the comparisons of housing
 services consumption between households of different sizes and
 composition. The last challenge may arise in the choice of a deprivation
 threshold and of a deprivation index. In this article we address those
 challenges theoretically. An empirical illustration is offered using
 Lebanese data. 
Journal: Applied Economics 
Pages: 853-866 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.524631 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524631 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:853-866




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher McIntosh 
Author-X-Name-First: Christopher 
Author-X-Name-Last: McIntosh 
Author-Name: Stefan Hellmer 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Hellmer 
Title: Necessary and sufficient conditions in merger control: the use of HHI and threshold value 
Abstract:
  This article considers two coarse measures applicable to antitrust
 policy: one of market concentration, the Herfindahl--Hirschman Index (HHI)
 and one of market dominance, threshold value. Calculations of threshold
 value are compared to HHI values to determine when thresholds might be of
 specific use in merger cases. Many scenarios which satisfy the threshold
 conditions (indicating a dominant firm exists) are consistent with high
 HHI numbers such that current US Department of Justice and European
 Commission guidelines (based on HHIs) for merger concerns will have been
 met. It is suggested as a rule of thumb that HHIs be used as necessary
 conditions and threshold value be considered sufficient conditions for
 further case review. 
Journal: Applied Economics 
Pages: 867-878 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.524632 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524632 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:867-878




Template-Type: ReDIF-Article 1.0
Author-Name: Mamta   B. Chowdhury 
Author-X-Name-First: Mamta   B. 
Author-X-Name-Last: Chowdhury 
Title: Growth and dynamics of Australia's education exports 
Abstract:
  Australia is the third largest global exporter of education services and
 generated $18.6 billion in 2009--2010. The education sector ranks as the
 top services exports and number three of all export earners in recent
 years after coal and iron ore. This study analyses the major determinants
 of Australia's education exports. Using the Johansen cointegration
 technique, a stable long run relationship is found between education
 export earnings, real exchange rate, world income and terms of trade. It
 is also found that policy reforms relating to opening up the education
 sector from the mid 1980s had a positive growth effect on the sector. 
Journal: Applied Economics 
Pages: 879-888 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.524633 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524633 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:879-888




Template-Type: ReDIF-Article 1.0
Author-Name: Kathryn   L. Combs 
Author-X-Name-First: Kathryn   L. 
Author-X-Name-Last: Combs 
Author-Name: John   A. Spry 
Author-X-Name-First: John   A. 
Author-X-Name-Last: Spry 
Title: Who plays the numbers games in the middle of the day? 
Abstract:
  We analyse the increase in sales of Pick 3 and Pick 4 daily numbers
 lottery games and other Ohio Lottery games after Ohio introduced midday
 drawings for the Pick 3 and Pick 4 games in August 1999. The midday
 drawings increased Pick 3 sales by 5%, Pick 4 sales by 12%, and total
 lottery sales by 2% based on our analysis of a 36-month panel dataset of
 Ohio lottery sales by zip code. Midday drawings raise more revenue from
 the strongly regressive daily numbers games. However, the introduction of
 midday drawings does not change the negative income elasticities of demand
 for numbers games in an economically meaningful manner. 
Journal: Applied Economics 
Pages: 889-897 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.524634 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524634 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:889-897




Template-Type: ReDIF-Article 1.0
Author-Name: Fabrice Collard 
Author-X-Name-First: Fabrice 
Author-X-Name-Last: Collard 
Author-Name: Carole Haritchabalet 
Author-X-Name-First: Carole 
Author-X-Name-Last: Haritchabalet 
Title: Valuing satellite systems to support fishing in a dynamic competitive model 
Abstract:
  This article investigates the technology adoption decision of a new
 satellite system aimed at locating tuna shoals. We propose a dynamic
 imperfect competition model with vertical differentiation in which each
 firm acts as a Cournot oligopolist and takes the evolution of the natural
 resource into account. In this dynamic setting, the model cannot be solved
 analytically and we rely on a numerical approach. Results are derived for
 the northern bluefin tuna. We find that high-quality firms value more the
 technology than low-quality firms. A direct implication of this result is
 that the market value of the new technology can be maximized while serving
 only the highest quality firms. We then evaluate how individual quotas can
 be used to increase the value that firms attach to the technology. 
Journal: Applied Economics 
Pages: 899-916 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.526581 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.526581 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:899-916




Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Dom󹱵ez 
Author-X-Name-First: Emilio 
Author-X-Name-Last: Dom󹱵ez 
Author-Name: Miren Ullibarri 
Author-X-Name-First: Miren 
Author-X-Name-Last: Ullibarri 
Author-Name: Idoia Zabaleta 
Author-X-Name-First: Idoia 
Author-X-Name-Last: Zabaleta 
Title: Effects of reduction in working hours on a model with job creation and job destruction 
Abstract:
  This article shows how, with certain modifications to a standard Real
 Business Cycle (RBC) model, and with certain qualified responses in the
 short and long term, a policy of reduction in the number of working hours
 can have positive effects on activity and employment. The modifications
 required to bring about these results include specification of the working
 day, existence of the creation and destruction of employment and
 differentiation between inactivity and unemployment. Results reveal that
 any measures taken to reduce the number of working hours must take into
 consideration the productivity levels of working hours, to thus ensure
 that the consequences of such a policy are positive not only for
 employment but also in all other macroeconomic variables. 
Journal: Applied Economics 
Pages: 917-932 
Issue: 7 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.526583 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.526583 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:7:p:917-932




Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨀠 &#xC1;ngeles Cadarso Vecina 
Author-X-Name-First: Mar𨀠 &#xC1;ngeles Cadarso 
Author-X-Name-Last: Vecina 
Author-Name: Nuria   G&#xF3;mez Sanz 
Author-X-Name-First: Nuria   G&#xF3;mez 
Author-X-Name-Last: Sanz 
Author-Name: Luis   Antonio L&#xF3;pez Santiago 
Author-X-Name-First: Luis   Antonio L&#xF3;pez 
Author-X-Name-Last: Santiago 
Author-Name: Mar𨀠 &#xC1;ngeles Tobarra G&#xF3;mez 
Author-X-Name-First: Mar𨀠 &#xC1;ngeles Tobarra 
Author-X-Name-Last: G&#xF3;mez 
Title: Offshoring components and their effect on employment: firms deciding about how and where 
Abstract:
  Firms must take two fundamental decisions: how and where to produce.
 Traditional measures of offshoring include information on both decisions
 but cannot distinguish between them. In this article, we attempt to
 distinguish the evolution of the requirement of inputs per unit of output
 (how to produce) from the delocalization of production to others countries
 (where to produce). We call global technical change to the first element
 and net offshoring to the second. We further decompose net offshoring into
 net inter-industry substitution and intra-industrial offshoring
 (replacement of domestic inputs for imported ones from the same sector).
 This last measure quantifies better the concept of delocalization of
 production to other countries looking for lower costs, the original idea
 behind offshoring. This decomposition allows us to further investigate on
 whether technical change or net offshoring is the main factor in recent
 Spanish industrial employment changes. 
Journal: Applied Economics 
Pages: 1009-1020 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.532113 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.532113 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:1009-1020




Template-Type: ReDIF-Article 1.0
Author-Name: Sunku Hahn 
Author-X-Name-First: Sunku 
Author-X-Name-Last: Hahn 
Author-Name: Tae-Hwan Kim 
Author-X-Name-First: Tae-Hwan 
Author-X-Name-Last: Kim 
Author-Name: Minho Kim 
Author-X-Name-First: Minho 
Author-X-Name-Last: Kim 
Title: The influence of school quality on housing prices in Korea 
Abstract:
  The existence of good schools is expected to increase nearby housing
 prices. We use a natural experiment from two cities in Korea where the
 high school entrance system changed from self-selection to geographical
 assignment. Our empirical results show that the existence of good high
 schools did increase the nearby housing prices as well as the rental
 prices. 
Journal: Applied Economics 
Pages: 1021-1023 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.534056 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534056 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:1021-1023




Template-Type: ReDIF-Article 1.0
Author-Name: Dobromi&#x142; Serwa 
Author-X-Name-First: Dobromi&#x142; 
Author-X-Name-Last: Serwa 
Title: Banking crises and nonlinear linkages between credit and output 
Abstract:
  In this article, we analyse the asymmetric causality linkages between
 credit growth and output growth during banking crises. We employ a
 recently developed procedure, based on a bivariate Markov switching model,
 to test the hypotheses of independence, causality and asymmetric causality
 between credit and output. Using a sample of 103 banking crises around the
 world, we find that neither credit nor output takes precedence as a
 variable in calm and crisis periods, although there is evidence of
 instantaneous interdependence between the banking and real sector during
 crises. The results suggest that shocks propagate mostly within a year
 between the banking sector and the real economy. The linear link between
 credit growth and output growth is also regime dependent. 
Journal: Applied Economics 
Pages: 1025-1040 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.534064 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534064 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:1025-1040




Template-Type: ReDIF-Article 1.0
Author-Name: Mete Feridun 
Author-X-Name-First: Mete 
Author-X-Name-Last: Feridun 
Title: Liability dollarization, exchange market pressure and fear of floating: empirical evidence for Turkey 
Abstract:
  The objective of this article is to examine the relationship between
 liability dollarization and the Exchange Market Pressure (EMP) in Turkey
 within an Autoregressive Distributed Lag (ARDL) and Granger causality
 framework using monthly data from 1991:12 to 2006:08. The findings suggest
 that there exists a long-term equilibrium relationship between EMP and
 liability dollarization, where liability dollarization Granger causes EMP
 both in the short- and long-run, with no evidence of reverse causality.
 This suggests that the predominance of foreign currency liabilities in the
 banks&#x2019; balance sheets in Turkey induces a selling pressure in the
 exchange market as well as a fear of floating. 
Journal: Applied Economics 
Pages: 1041-1056 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.534073 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:1041-1056




Template-Type: ReDIF-Article 1.0
Author-Name: Dominique Anxo 
Author-X-Name-First: Dominique 
Author-X-Name-Last: Anxo 
Author-Name: Shakir Hussain 
Author-X-Name-First: Shakir 
Author-X-Name-Last: Hussain 
Author-Name: Ghazi Shukur 
Author-X-Name-First: Ghazi 
Author-X-Name-Last: Shukur 
Title: The demand of part-time in European companies: a multilevel modelling approach 
Abstract:
  Part-time work is one of the most well-known &#x2018;atypical&#x2019;
 working time arrangements. In contrast to previous studies focusing on the
 supply side, the originality of our research is to investigate the
 demand-side of part-time work and to examine how and why companies use
 part-time work. Based on a large and unique sample of European firms
 operating in 21 member states, we use a multilevel multinomial modelling
 in a Bayesian environment. Our results suggest that the variations in the
 extent of part-time workers at the establishment level is determined more
 by country-specific features than by industry-specific factors. 
Journal: Applied Economics 
Pages: 1057-1066 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.534075 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:1057-1066




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Peyrache 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Peyrache 
Author-Name: Cinzia Daraio 
Author-X-Name-First: Cinzia 
Author-X-Name-Last: Daraio 
Title: Empirical tools to assess the sensitivity of directional distance functions to direction selection 
Abstract:
  Directional Distance Functions (DDFs) are becoming a popular way of
 measuring efficiency as they encompass the Shephard output and input
 distance functions as special cases. However, the most critical and still
 unsolved issue related to DDF remains the selection of the direction along
 which to measure the distance from the efficient frontier. In this
 article, we propose some empirical tools which allow to quantify the
 sensitivity of the efficiency measurement to the selection of the
 direction. The proposed tools are applied on a dataset on the Italian
 agricultural sector. 
Journal: Applied Economics 
Pages: 933-943 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.526582 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.526582 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:933-943




Template-Type: ReDIF-Article 1.0
Author-Name: Juan   C. Reboredo 
Author-X-Name-First: Juan   C. 
Author-X-Name-Last: Reboredo 
Title: The switch from continuous to call auction trading in response to a large intraday price movement 
Abstract:
  Some European exchanges (e.g. Euronext, Frankfurt and Madrid) make use of
 a mechanism to moderate price volatility that was proposed by Madhavan
 (1992) as preferable to a trading halt in times of market stress. It
 consists of a temporary switch from continuous to call auction trading in
 an individual security whenever its price moves beyond predetermined
 limits. This article studies whether this mechanism sharpens the
 information content of prices, dampens volatility and normalizes trading
 volume and intensity. Taking intraday data for the Madrid order driven
 continuous market, I find post switch improvements in the information
 content of prices and reductions in volatility, especially for thinly
 traded stocks. Trading volume and intensity peaked around auctions, but
 soon returned to preevent levels. 
Journal: Applied Economics 
Pages: 945-967 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.526584 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.526584 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:945-967




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Jensen 
Author-X-Name-First: Frank 
Author-X-Name-Last: Jensen 
Author-Name: Jesper Andersen 
Author-X-Name-First: Jesper 
Author-X-Name-Last: Andersen 
Author-Name: Carsten   Lynge Jensen 
Author-X-Name-First: Carsten   Lynge 
Author-X-Name-Last: Jensen 
Title: Investment behaviour in individual nontransferable quota systems 
Abstract:
  This article studies the investment behaviour of the Danish demersal
 fishery in the North Sea. For the study period, this fishery is regulated
 by variants of individual nontransferable quotas. It is shown that
 interest rates and capital stocks are primary determinants of investments.
 Another conclusion is that an aggregated model based on the whole fleet
 gives identical results to models based on individual fleets
 (disaggregated models) for trawlers and Danish seiners. However, for
 netters and other vessels, the aggregated and disaggregated models yield
 different results. In addition, the variance of the estimated parameters
 is lower in the disaggregated models. This result arises because vessels
 in the disaggregated models are more homogeneous. Furthermore, investments
 in machinery, electronics and vessels are governed by one year lagged
 variables, while investment in gears is governed by present variables for
 the Danish demersal fishery in the North Sea. 
Journal: Applied Economics 
Pages: 969-978 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.528371 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528371 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:969-978




Template-Type: ReDIF-Article 1.0
Author-Name: Terry Robinson 
Author-X-Name-First: Terry 
Author-X-Name-Last: Robinson 
Title: Dyed in the wool? An empirical note on fan loyalty 
Abstract:
  This article attempts to investigate empirically the strength of
 intracity football club support and seeks to test the commonly held belief
 among the sports community that supporters will not switch allegiance
 between city rivals very readily. To test this phenomenon, data on the
 attendances of five English and two Italian city rival clubs is used to
 conduct a cointegration analysis. The results imply that a stable
 relationship does not exist between the attendance series which throws
 doubt on the proposition that supporters of a team are unlikely to switch
 their support to a rival club. To test the possibility that this result
 could be due to fickle supporters ceasing to attend, a sensitivity
 analysis is conducted between attendances and performance. 
Journal: Applied Economics 
Pages: 979-985 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.528372 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:979-985




Template-Type: ReDIF-Article 1.0
Author-Name: Madhusudan Datta 
Author-X-Name-First: Madhusudan 
Author-X-Name-Last: Datta 
Title: Service boom in the Indian economy: an analysis of causal influences 
Abstract:
  The article decomposes the influence behind the growth of service
 activities in the Indian economy over the last three decades into three
 components -- the final demand effect, input structure effect and
 reallocation effect -- and makes empirical assessments thereof. In terms
 of the influences, the behaviour of the group of services used basically
 as intermediate inputs, designated as category-I services, was distinct
 from the rest of heterogeneous services combined as &#x2018;community,
 social and personal services&#x2019;. The study finds that apart from the
 final demand effect, the other two influences too played very important
 but different roles in different phases of growth. 
Journal: Applied Economics 
Pages: 987-998 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.528373 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:987-998




Template-Type: ReDIF-Article 1.0
Author-Name: Moonsung Kang 
Author-X-Name-First: Moonsung 
Author-X-Name-Last: Kang 
Author-Name: Hongshik Lee 
Author-X-Name-First: Hongshik 
Author-X-Name-Last: Lee 
Author-Name: Soonchan Park 
Author-X-Name-First: Soonchan 
Author-X-Name-Last: Park 
Title: Industry-specific effects of antidumping activities: evidence from the US, the European Union and China 
Abstract:
  This article analyses industry-specific effects of Antidumping (AD)
 activities on trade, using the system Generalized Method of Moments (GMM)
 in dynamic panel date models. In the process of doing so, this article
 selected three frequent AD users, such as the US, the European Union (EU)
 and China. Additionally, we chose the metal/steel, chemical and
 plastic/rubber industries for the US cases; chemical, metal/steel and
 machinery/electronics industries for the EU cases; and the chemical
 industry for the Chinese cases. Based on the analyses conducted herein, we
 detected positive evidence of industry-specific impacts of AD measures
 imposed by the three frequent users. 
Journal: Applied Economics 
Pages: 999-1008 
Issue: 8 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.530223 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.530223 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:8:p:999-1008




Template-Type: ReDIF-Article 1.0
Author-Name: Alex Acworth 
Author-X-Name-First: Alex 
Author-X-Name-Last: Acworth 
Author-Name: Nicolas de Roos 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: de Roos 
Author-Name: Hajime Katayama 
Author-X-Name-First: Hajime 
Author-X-Name-Last: Katayama 
Title: Substance use and adolescent sexual activity 
Abstract:
  Using the National Longitudinal Survey of Youth 1997, we examine the
 relationship between initiating substance use and youth sexual behaviour.
 We employ a combination of panel data and propensity score matching
 techniques to control for observed and unobserved heterogeneity. The
 results indicate striking differences across gender. For males, initiating
 alcohol or marijuana use is positively and significantly associated with
 the likelihood of engaging in sexual intercourse and uncontracepted sexual
 intercourse. For females, in contrast, there is no robust evidence for
 such links. 
Journal: Applied Economics 
Pages: 1067-1079 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.534074 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534074 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1067-1079




Template-Type: ReDIF-Article 1.0
Author-Name: Hai Fang 
Author-X-Name-First: Hai 
Author-X-Name-Last: Fang 
Author-Name: John   A. Rizzo 
Author-X-Name-First: John   A. 
Author-X-Name-Last: Rizzo 
Title: Does inequality in China affect health differently in high- versus low-income households? 
Abstract:
  China's so-called &#x2018;reform and opening up&#x2019; policy (Gai Ge
 Kai Fang), implemented nearly 30 years ago, has led to tremendous economic
 development. China's nominal Gross Domestic Product (GDP) was 3.25
 trillion US dollars in 2007, making it the fourth largest economy in the
 world. At the same time, income inequality has become quite skewed in
 China, inviting considerable criticism. Moreover, the trend towards
 greater income inequality persists. Of particular public policy relevance
 is the effect of income inequality on health disparities in China,
 particularly for low-income households. This study addresses this issue
 using a longitudinal dataset from the China Health and Nutrition Survey
 (CHNS) over the period 1997 to 2006. Our central finding is that income
 inequality affects health differently by socioeconomic status: income
 inequality harms individual health among low income households by more
 than it does among high income households. More specifically, health is
 more adversely affected by greater income inequality for households with
 low incomes. China's central government is committed to making further
 investments in the health care system. As part of that effort, attention
 should be directed at low income households to reduce health inequality,
 possibly providing them with a health insurance safety net similar to
 Medicaid in USA. 
Journal: Applied Economics 
Pages: 1081-1090 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.534076 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1081-1090




Template-Type: ReDIF-Article 1.0
Author-Name: Hui Huang 
Author-X-Name-First: Hui 
Author-X-Name-Last: Huang 
Author-Name: John Whalley 
Author-X-Name-First: John 
Author-X-Name-Last: Whalley 
Title: The form of money demand function and the welfare costs of inflation 
Abstract:
  In this article we show that the marginal welfare costs of inflationary
 is progressively larger with the inflation rate in Bailey's formulation,
 but under Baumol--Tobin treatment the opposite applies. 
Journal: Applied Economics 
Pages: 1091-1092 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.534077 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534077 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1091-1092




Template-Type: ReDIF-Article 1.0
Author-Name: Vani   K. Borooah 
Author-X-Name-First: Vani   K. 
Author-X-Name-Last: Borooah 
Author-Name: John Mangan 
Author-X-Name-First: John 
Author-X-Name-Last: Mangan 
Title: Measuring competitive balance in sports using generalized entropy with an application to English premier league football 
Abstract:
  A central issue in the economics of sport is the degree of competitive
 balance in sporting contests. The importance attached to competitive
 balance is predicated on the belief that it is uncertainty about the
 outcomes of sporting contests that attracts spectators and sponsors. In a
 perfectly balanced competition, each team would have an equal chance of
 winning each match and, therefore, of winning the championship or the
 league. By contrast, the absence of competitive balance would mean that
 the results of sporting contests would become predictable and attendance
 at sporting contests would suffer. The general theme that underpins the
 issue of competitive balance is that of inequality. This article proposes
 a general measure of competitive balance based on the Generalized Entropy
 (GE) approach to measuring inequality and shows how this might be
 interpreted in terms of the league's welfare. The measures are applied to
 results from 2006 to 2007 season of the English Premier League (EPL). 
Journal: Applied Economics 
Pages: 1093-1102 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.537638 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537638 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1093-1102




Template-Type: ReDIF-Article 1.0
Author-Name: Nada Mora 
Author-X-Name-First: Nada 
Author-X-Name-Last: Mora 
Author-Name: Andrew Logan 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Logan 
Title: Shocks to bank capital: evidence from UK banks at home and away 
Abstract:
  This article assesses how shocks to bank capital may influence a bank's
 portfolio behaviour using novel evidence from a UK bank panel data set
 from a period that predates the recent financial crisis. Focusing on the
 behaviour of bank loans, we extract the dynamic response of a bank to
 innovations in its capital and in its regulatory capital buffer. We find
 that innovations in a bank's capital in this (precrisis) sample period
 were coupled with a loan response that lasted up to 3 years. The
 international presence of UK banks allows us to identify a specific driver
 of capital shocks in our data, independent of bank lending to UK
 residents. Specifically, we use write-offs on loans to nonresidents to
 instrument bank capital's impact on UK resident lending. A fall in capital
 brought about a significant drop in lending in particular, to Private
 Nonfinancial Corporations (PNFC). In contrast, household lending increased
 when capital fell, which may indicate that, in this precrisis period,
 banks substituted into less risky assets when capital was short. 
Journal: Applied Economics 
Pages: 1103-1119 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.537639 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537639 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1103-1119




Template-Type: ReDIF-Article 1.0
Author-Name: Don   J. Webber 
Author-X-Name-First: Don   J. 
Author-X-Name-Last: Webber 
Author-Name: Andrew Mearman 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Mearman 
Title: Students&#x2019; perceptions of economics: identifying demand for further study 
Abstract:
  Most university departments aspire to increase their quantity of
 students. The objective of this empirical study is to ascertain whether it
 is possible to identify students who would demand more economics study.
 Using data on student perceptions of economics and the application of
 logistic regression, two step autoclustering, <italic>K</italic> means
 clustering, analysis of variance and Tukey's honestly significant
 difference statistical techniques, we reveal distinct clusters of
 students, including a small cluster of students who appear to be more open
 to further study. 
Journal: Applied Economics 
Pages: 1121-1132 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.537640 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537640 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1121-1132




Template-Type: ReDIF-Article 1.0
Author-Name: G.   Thomas Sav 
Author-X-Name-First: G.   Thomas 
Author-X-Name-Last: Sav 
Title: Government free riding in the public provision of higher education: panel data estimates of possible crowding out 
Abstract:
  This article employs panel data on more than 1000 US public colleges and
 universities to investigate the effect of private giving on state
 government funding. Government free riding is at question and is found to
 be active in that private donations partially displace state government
 funding at the rate of 83 cents on the dollar. That compares to the 45
 cents political substitution of the 1960s but is much diminished from the
 $1.07 of the 1980s. Those are aggregate comparisons for all public
 institutions. A disaggregated approach in this article additionally
 reveals that doctoral granting research universities are somewhat lesser
 victims of crowd out in experiencing a 71 cents cut. At master level
 colleges and universities and associate 2 year degree granting colleges,
 crowding out is estimated to be on the order 87 cents and $1.10,
 respectively. Relative to the academic year 2000 to 2001, publicly
 controlled colleges and universities are found to experience significant
 reductions in state appropriated funding in 2003 to 2004 and 2006 to 2007.
 Even accounting for changes in the business cycle and changes in possible
 government spending priorities over time, the overall findings support the
 persistent effect of this brand of crowding out. 
Journal: Applied Economics 
Pages: 1133-1141 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.537641 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537641 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1133-1141




Template-Type: ReDIF-Article 1.0
Author-Name: Alexis Habiyaremye 
Author-X-Name-First: Alexis 
Author-X-Name-Last: Habiyaremye 
Author-Name: Thomas   H. W. Ziesemer 
Author-X-Name-First: Thomas   H. W. 
Author-X-Name-Last: Ziesemer 
Title: Export demand elasticities and productivity as determinants of growth: estimates for Mauritius 
Abstract:
  In this article, we combine the export led and import led growth
 hypotheses in a growth model in which the importation of foreign capital
 goods and the demand elasticities of own export products explain the
 growth opportunities and the technical progress of developing countries.
 This model, based on imported capital goods, uses Mauritius&#x2019; data
 on capital investment, employment, export partners&#x2019; growth and
 terms of trade to estimate price and income elasticities of export demand,
 total factor productivity growth and economies of scale. These
 elasticities are then used to assess how the growth in export
 partners&#x2019; income is converted into domestic growth. The
 implications of the presence of low or high export demand elasticities are
 discussed by relating them to various strands of trade and growth
 literature. Based on the results of this estimation, we also calculate
 steady state growth rates, engine and handmaiden effects of growth as well
 as the dynamic steady state gains from trade for this latecomer export
 economy. The implications of steady state results are also discussed in
 the light of the Mauritian employment and growth perspectives. 
Journal: Applied Economics 
Pages: 1143-1158 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.537642 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1143-1158




Template-Type: ReDIF-Article 1.0
Author-Name: N.   Ben David 
Author-X-Name-First: N.   Ben 
Author-X-Name-Last: David 
Author-Name: U. Benzion 
Author-X-Name-First: U. 
Author-X-Name-Last: Benzion 
Author-Name: E. Ofir 
Author-X-Name-First: E. 
Author-X-Name-Last: Ofir 
Author-Name: E. Spanier 
Author-X-Name-First: E. 
Author-X-Name-Last: Spanier 
Title: A model for estimating fish population and optimal fishing effort in lakes and rivers 
Abstract:
  We developed a model for estimating the fish population for various
 species in lakes and rivers. Our estimation focuses, in its first step, on
 fish species that breed outside the lake. Using the annual outside supply
 of fingerlings, natural survival rate and reported amounts of fish caught,
 we estimated fish stock. Given the estimated stock for fish bred outside
 the lake, we can evaluate the catch rate. Assuming equal catch rates for
 other species, and given the amount caught for each species, we are able
 to evaluate each species stock. Using the proposed technique, we evaluated
 various species stocks in the Sea of Galilee (Lake Kinneret) in Israel.
 Using our suggested technique for evaluating fish stock, we calculated the
 optimal effort of fishing needed for maximizing steady state profit of the
 fishers. 
Journal: Applied Economics 
Pages: 1159-1168 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.537643 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1159-1168




Template-Type: ReDIF-Article 1.0
Author-Name: Alasdair Brown 
Author-X-Name-First: Alasdair 
Author-X-Name-Last: Brown 
Title: Evidence of in-play insider trading on a UK betting exchange 
Abstract:
  An open question in market microstructure is whether
 &#x2018;informed&#x2019; traders have an advantage due to access to
 private, inside, information; or due to a superior ability to process
 public information. In this article we attempt to answer this question
 with data from a sports betting exchange taken during play. Uniquely, this
 allows us to time-stamp information events to the nearest second, and to
 ensure we are observing all relevant information regarding the value of an
 asset. We find evidence of inside information but not of a superior
 ability to process public information. The first finding suggests that a
 subset of the betting population are observing the action before the wider
 public (possibly due to delays in the television signal), and betting
 using this informational advantage. 
Journal: Applied Economics 
Pages: 1169-1175 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.537644 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537644 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1169-1175




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer 
Author-X-Name-First: Richard 
Author-X-Name-Last: Thalheimer 
Title: The demand for slot machine and pari-mutuel horse race wagering at a racetrack-casino 
Abstract:
  This article expands the limited literature on the demand for casino
 (racino) wagering. The focus of this article is on the interrelationship
 of the demands for slot machine and horse race wagering at a racino.
 Wagering demand models were estimated for the two racino products; slot
 machine gaming and pari-mutuel horse racing. Horse race and slot machine
 wagering both decreased when a competing casino entered the racino's
 market area. As in earlier studies, slot machine customers did not, on
 net, bet on horse racing but horse racing customers did bet on slot
 machines. Pari-mutuel horse race wagering fell 21% after slot machines
 were introduced and 16% following the introduction of table games. On the
 other hand, slot machine wagering increased 13% in the presence of live
 horse racing and 14% in the presence of import simulcast horse racing.
 Slot machine wagering fell 8% with the introduction of table games. This
 has important policy implications if stakeholder shares of table game
 revenue are different than their corresponding slot machines shares. Those
 with lower table game shares may lose net gaming revenue if table games do
 not produce enough revenue to offset the expected loss of slot machine
 revenue. 
Journal: Applied Economics 
Pages: 1177-1191 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.537645 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1177-1191




Template-Type: ReDIF-Article 1.0
Author-Name: J&#xF6;rg Franke 
Author-X-Name-First: J&#xF6;rg 
Author-X-Name-Last: Franke 
Title: The incentive effects of levelling the playing field -- an empirical analysis of amateur golf tournaments 
Abstract:
  Levelling the playing field is an important policy instrument to
 guarantee an equitable competition among heterogeneous individuals.
 However, the incentive effects of those policies are usually not
 explicitly addressed in empirical studies. In this article the performance
 in amateur golf tournaments is analysed to gain insights into the
 incentive effects of those types of policies. The empirical analysis takes
 advantage of the fact that tournaments in amateur golf are of two
 distinctive types that apply different scoring rules: while one scoring
 rule is based on gross scores, i.e. the total number of strokes of a
 player, the second scoring rule is based on net scores where the total
 number of strokes is normalized with respect to the respective player's
 handicap. Performance comparisons of players who participated in both
 types of tournaments suggest that levelling the playing field, as in
 tournaments based on net score, has positive and significant performance
 effects. 
Journal: Applied Economics 
Pages: 1193-1200 
Issue: 9 
Volume: 44 
Year: 2012 
Month: 3 
X-DOI: 10.1080/00036846.2010.537646 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:9:p:1193-1200




Template-Type: ReDIF-Article 1.0
Author-Name: Ritesh Banerjee 
Author-X-Name-First: Ritesh 
Author-X-Name-Last: Banerjee 
Author-Name: Ethan Cohen-Cole 
Author-X-Name-First: Ethan 
Author-X-Name-Last: Cohen-Cole 
Title: Competition and the cost of health care 
Abstract:
  In this article, we investigate pricing power in the US health care
 market. Using new data on state-level health care cost, as well as
 combining public and previously unused data on concentration among
 insurers and providers, we find a link between the market concentration of
 insurance carriers and total costs. We also present suggestive evidence
 that concentration in the hospital sector does not relate to total costs;
 however, it may lead to decreased health care access. The implications are
 large: we find that a 1 percentage point increase in the average market
 share of the largest five carriers in a market leads to a 10% increase in
 expenditures. 
Journal: Applied Economics 
Pages: 1201-1207 
Issue: 10 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539537 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539537 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:10:p:1201-1207




Template-Type: ReDIF-Article 1.0
Author-Name: Masakazu Hojo 
Author-X-Name-First: Masakazu 
Author-X-Name-Last: Hojo 
Title: Shared literacy and employment in the nonfarm sector 
Abstract:
  This article empirically examines the external effect of family literacy
 on the earnings of illiterate workers. Considering recent findings that
 rural nonfarm sectors in developing countries are becoming more important
 in determining the welfare of households, this article tests two
 hypotheses: (1) an illiterate person living with literate members (i.e. a
 <italic>proximate</italic> illiterate person) is more likely to find a job
 in the nonfarm sector than is an illiterate person living with no literate
 person (i.e. an <italic>isolated</italic> illiterate person) and (2) wage
 income of a proximate illiterate worker is higher than that of an isolated
 illiterate worker. The empirical results suggest that proximate illiterate
 persons earn higher wages than isolated illiterate persons because they
 are more likely to be employed in the nonfarm sector. 
Journal: Applied Economics 
Pages: 1209-1217 
Issue: 10 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539538 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539538 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:10:p:1209-1217




Template-Type: ReDIF-Article 1.0
Author-Name: Doyoung Kim 
Author-X-Name-First: Doyoung 
Author-X-Name-Last: Kim 
Title: On the determinants of director additions and removals 
Abstract:
  This article studies director additions and removals for S&P 500 firms
 during the period 2000 to 2003. It finds that firms with smaller board
 size than estimated efficient levels add more and remove fewer directors
 than firms with larger board size. It also finds that firms with lower
 board independence than estimated efficient levels add more and remove
 fewer independent directors, and add fewer and remove more nonindependent
 directors than firms with higher board independence. These findings
 suggest that firms add and remove directors to adjust board structure in a
 manner consistent with economic efficiency. 
Journal: Applied Economics 
Pages: 1219-1233 
Issue: 10 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539539 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539539 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:10:p:1219-1233




Template-Type: ReDIF-Article 1.0
Author-Name: St鰨ane Mussard 
Author-X-Name-First: St鰨ane 
Author-X-Name-Last: Mussard 
Author-Name: Luc Savard 
Author-X-Name-First: Luc 
Author-X-Name-Last: Savard 
Title: The Gini multi-decomposition and the role of Gini's transvariation: application to partial trade liberalization in the Philippines 
Abstract:
  This article proposes a unified technique of the Gini decomposition. The
 Gini multi-decomposition is a combination of the income source
 decomposition and the subgroup decomposition. This technique is applied on
 reference situation and simulated scenarios for partial trade
 liberalisation in Philippines, and is extended to different orderings to
 capture a wide range of between-group indicators. We simulate variations
 in income source distributions for seven educational groups in the
 Philippines, in order to measure the inequality variations between a
 reference situation and a post simulation one with positive externalities
 due to public expenditures on the private sector productivity. 
Journal: Applied Economics 
Pages: 1235-1249 
Issue: 10 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539540 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539540 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:10:p:1235-1249




Template-Type: ReDIF-Article 1.0
Author-Name: Alex Coad 
Author-X-Name-First: Alex 
Author-X-Name-Last: Coad 
Author-Name: Tom Broekel 
Author-X-Name-First: Tom 
Author-X-Name-Last: Broekel 
Title: Firm growth and productivity growth: evidence from a panel VAR 
Abstract:
  This article offers new insights into the processes of firm growth by
 applying a reduced-form Vector Autoregression (VAR) model to longitudinal
 panel data on French manufacturing firms. We observe the co-evolution of
 key variables such as growth of employment, sales and gross operating
 surplus, as well as growth of multifactor productivity. It seems that
 employment growth is negatively associated with subsequent growth of
 productivity. This latter result, however, is sensitive to our choice of
 productivity indicator, i.e. multifactor productivity or labour
 productivity. 
Journal: Applied Economics 
Pages: 1251-1269 
Issue: 10 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539542 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539542 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:10:p:1251-1269




Template-Type: ReDIF-Article 1.0
Author-Name: Enzo Weber 
Author-X-Name-First: Enzo 
Author-X-Name-Last: Weber 
Title: Regional and outward economic integration in South-East Asia 
Abstract:
  The subject of this article tackles macroeconomic integration of the
 South-East Asian countries South Korea, Singapore and Taiwan.
 Economically, the analysis is based on notions of stochastic long-run
 convergence and business cycle synchrony in the Gross Domestic Products
 (GDPs). Relevant tests for cointegration and common serial correlation
 features reveal a high degree of coherence in long-run growth and
 medium-run fluctuations. This allows extracting a common stochastic growth
 trend and a common business cycle. Further analysis shows that both these
 components are subject to stronger influences from the US than from Japan.
 Convergence towards these matured economies conspicuously appears since
 the 1990s. 
Journal: Applied Economics 
Pages: 1271-1283 
Issue: 10 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539543 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539543 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:10:p:1271-1283




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco de Assis Costa 
Author-X-Name-First: Francisco 
Author-X-Name-Last: de Assis Costa 
Title: Corporations and local economies in the Brazilian Amazon: the impacts of the mining sectors scheduled investments in Southeastern Par&#xE1; (2004--2010) 
Abstract:
  Southeastern Par&#xE1; is an extraordinarily dynamic region. There were
 large cattle ranching projects, financed in the 1960s. Expansion of
 peasant agriculture, mineral projects and gold prospecting followed the
 ranching projects. Also important structural transformations reinforced
 the role of the urban centres and the local rural bases in the logistics
 of new economic sectors conditioned by the presence of Companhia Vale do
 Rio Doce (CVRD), in the region since 1985. This article presents the
 results of an input--output analysis of the investment programme of CVRD
 from year 2004 up to 2010. The main findings are that the mineral sector
 has achieved a considerable influence over the economy of Southeastern
 Par&#xE1;, so that during the cycle of investments each 1% in the growth
 of the mineral production creates growth possibilities of about 0.83% for
 the agricultural sector and about 0.86% for the local urban sectors.
 Considering just the production growth, a percentile point will imply
 growth at, respectively, 0.73% and 0.76% for those sectors. For the
 economy of the rest of the state of Par&#xE1;, those elasticities would
 be, incorporating the investments, 0.80% and, without them, 0.68%. For the
 economy of the rest of Brazil they would be, respectively, 0.88% and
 0.78%. 
Journal: Applied Economics 
Pages: 1285-1302 
Issue: 10 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539544 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539544 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:10:p:1285-1302




Template-Type: ReDIF-Article 1.0
Author-Name: Ariaster   B. Chimeli 
Author-X-Name-First: Ariaster   B. 
Author-X-Name-Last: Chimeli 
Author-Name: Roy   G. Boyd 
Author-X-Name-First: Roy   G. 
Author-X-Name-Last: Boyd 
Author-Name: Darius   M. Adams 
Author-X-Name-First: Darius   M. 
Author-X-Name-Last: Adams 
Title: International timber markets and tropical deforestation: the evidence from prices 
Abstract:
  Some scholars suggest that global timber markets, especially those
 involving high value species, are a leading cause of tropical
 deforestation. Despite limited empirical evidence, this hypothesis rests
 on the assumption that global timber markets respond to a common
 equilibrating mechanism that provides strong enough incentives for loggers
 in the tropical regions of the world. This article develops a simple model
 and taps into a unique data set on timber prices of hardwood and softwood
 in leading markets to test the global timber markets hypothesis. While we
 find evidence of a global equilibrating mechanism with potentially
 significant economic incentives to affect tropical deforestation, our
 results do not endorse the common conjecture in the literature that timber
 price shocks in developed countries lead to a homogeneous response in
 terms of deforestation everywhere in the tropical world. Instead, they
 invite further development of structural global timber market models to
 assess the linkages between markets and the consequences of such linkages
 to deforestation. 
Journal: Applied Economics 
Pages: 1303-1314 
Issue: 10 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539545 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539545 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:10:p:1303-1314




Template-Type: ReDIF-Article 1.0
Author-Name: Sven Schreiber 
Author-X-Name-First: Sven 
Author-X-Name-Last: Schreiber 
Title: Estimating the natural rate of unemployment in euro-area countries with co-integrated systems 
Abstract:
  Given that for France, Germany, Italy and the Netherlands the
 unemployment rates are best classified as <italic>I</italic>(1), we apply
 permanent-transitory decompositions based on co-integrated Vector
 Autoregressions (VAR) with relevant variables (labour productivity, wages,
 tax wedges, foreign relative prices) to estimate the time-varying natural
 unemployment rates. In general all variables seem to matter, and the
 results are quite different from published Organization for Economic
 Co-operation and Development (OECD) Nairus. Our implied unemployment gaps
 are better than the OECD gaps in predicting unemployment changes and
 inflation gaps, but they are (except for Italy) as bad as the OECD gaps
 for forecasting inflation changes. 
Journal: Applied Economics 
Pages: 1315-1335 
Issue: 10 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539548 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539548 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:10:p:1315-1335




Template-Type: ReDIF-Article 1.0
Author-Name: R. Pr駥t 
Author-X-Name-First: R. 
Author-X-Name-Last: Pr駥t 
Author-Name: P. Waelbroeck 
Author-X-Name-First: P. 
Author-X-Name-Last: Waelbroeck 
Title: What is the cost of low participation in French timber auctions? 
Abstract:
  How much is the standing timber from public forests worth? To estimate
 the value of a timber lot, we adopt the transaction evidence appraisal
 approach using data from timber auctions in Lorraine (Eastern France)
 accounting for the facts that: (i) the seller's reserve prices are secret,
 (ii) there remain many unsold lots and (iii) the number of bidders varies
 across auctions. Taking into account the endogenous participation in our
 hedonic price equation for the highest bid, we estimate that, compared to
 lots that receive two bids, the highest bid is 22% lower when there is
 only one bid and 37% higher when there are three or more bids. 
Journal: Applied Economics 
Pages: 1337-1346 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539546 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539546 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1337-1346




Template-Type: ReDIF-Article 1.0
Author-Name: ByungWoo Kim 
Author-X-Name-First: ByungWoo 
Author-X-Name-Last: Kim 
Title: Growth regression revisited: R&D promotes convergence? 
Abstract:
  Barro and Sala-i-Martin (2004) analysed the empirical determinants of
 growth. They used a cross-sectional empirical framework that considered
 growth from two kinds of factors, initial levels of steady-state variables
 and control variables (e.g. investment ratio, infrastructure). Recent
 literature suggests that Generalized Method of Moments (GMM) estimation of
 dynamic panel data models produce more efficient and consistent estimates
 than Ordinary Least Squares (OLS) or pooled regression models. Following
 Cellini (1997), we also consider co-integration and error-correction
 methods for the growth regression. We extend the previous research for
 Asian countries of Kim (2009) to developed countries. Following the
 implications of semi-endogenous growth theory, we regressed output growth
 on a constant, 1-year lagged output (initial income) and the determinants
 of steady-state income (investment rate, population growth, the quadratic
 (or linear) function of Research and Development (R&D) intensity). The
 regression suggests faster significant convergence. This contradicts with
 that of Mankiw <italic>et&#xA0;al</italic>. (1992), which asserts that the
 speed is lower when considering broad concept of capital including human
 capital. The coefficients for the determinants of steady-state income,
 especially for the quadratic function of R&D intensity, are significant
 and occur in the expected direction. Our results suggest that adopting
 appropriate growth policy, an economy can grow more rapidly through
 transition dynamics or changing fundamentals. 
Journal: Applied Economics 
Pages: 1347-1362 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539547 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539547 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1347-1362




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Caragliu 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Caragliu 
Author-Name: Peter Nijkamp 
Author-X-Name-First: Peter 
Author-X-Name-Last: Nijkamp 
Title: The impact of regional absorptive capacity on spatial knowledge spillovers: the Cohen and Levinthal model revisited 
Abstract:
  We design a conceptual framework for linking two approaches: absorptive
 capacity and spatial Knowledge Spillovers (KSs). Regions produce new
 knowledge, but only part of it is efficiently adopted in the economy; the
 share of efficiently adopted technology depends on cognitive capital. Our
 dataset is based on a panel of European regions over the period 1999 to
 2006, combining data from EUROSTAT and the European Values Study (EVS). We
 test the hypothesis that insufficient levels of cognitive capital hamper
 the capability of regions to fully exploit new knowledge. Results show
 that a lower regional absorptive capacity increases KS towards surrounding
 areas, hampering the regions&#x2019; capability to decode and efficiently
 exploit new knowledge, both locally produced and originating from outside. 
Journal: Applied Economics 
Pages: 1363-1374 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539549 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539549 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1363-1374




Template-Type: ReDIF-Article 1.0
Author-Name: Akram   Masoud Haddad 
Author-X-Name-First: Akram   Masoud 
Author-X-Name-Last: Haddad 
Author-Name: Yousef Shahwan 
Author-X-Name-First: Yousef 
Author-X-Name-Last: Shahwan 
Title: Optimization agricultural production under financial risk of water constraint in the Jordan Valley 
Abstract:
  Some sectors of the Jordanian agriculture have reached, over the last few
 years, a considerably high standard of competitiveness. Such evolution
 occurred in a period where the government started to have a more passive
 position and, producers, in turn, tried themselves to modify the
 production structures, adapting to the forces of the market and to the
 demands for internal and external competitiveness. Jordan Valley (JV) is
 considered as a basket of fruit and vegetables of Jordan that allows
 production of seasonal crops. The main constraint to agriculture in JV is
 water availability. Target Minimization of Total Absolute Deviation
 (MOTAD) model was used to evaluate three levels of water availability and
 these are: current normal situation, 50% and 30% water reduction. It was
 evident that crops behaviour under risk condition in JV differs according
 to the risk associated with production process, both for season and amount
 of water available for irrigation where the impact of water reduction was
 obvious in winter (spring) farming season. 
Journal: Applied Economics 
Pages: 1375-1385 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.539550 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539550 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1375-1385




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Paul Chavas 
Author-X-Name-First: Jean-Paul 
Author-X-Name-Last: Chavas 
Author-Name: Bradford Barham 
Author-X-Name-First: Bradford 
Author-X-Name-Last: Barham 
Author-Name: Jeremy Foltz 
Author-X-Name-First: Jeremy 
Author-X-Name-Last: Foltz 
Author-Name: Kwansoo Kim 
Author-X-Name-First: Kwansoo 
Author-X-Name-Last: Kim 
Title: Analysis and decomposition of scope economies: R&D at US research universities 
Abstract:
  This article uses a multi output production function to analyse economies
 of scope between patents and R&D in US research universities. It evaluates
 the tradeoffs and/or synergies that arise between traditional university
 research outputs (articles and doctorates) and academic patents. It also
 investigates the sources of economies of scope and the relative roles of
 complementarity, scale and convexity. Nonparametric Data Envelopment
 Analysis (DEA) estimates of scope economies using R&D input and output
 data from 92 research universities show significant economies of scope
 between articles and patents but only modest complementarities except in a
 few cases. The analysis shows how scale effects (for small universities)
 and convexity effects can contribute to economies of scope. 
Journal: Applied Economics 
Pages: 1387-1404 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.541151 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.541151 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1387-1404




Template-Type: ReDIF-Article 1.0
Author-Name: Seong-Hoon Cho 
Author-X-Name-First: Seong-Hoon 
Author-X-Name-Last: Cho 
Author-Name: Suhyun Jung 
Author-X-Name-First: Suhyun 
Author-X-Name-Last: Jung 
Author-Name: Roland   K. Roberts 
Author-X-Name-First: Roland   K. 
Author-X-Name-Last: Roberts 
Author-Name: Seung   Gyu Kim 
Author-X-Name-First: Seung   Gyu 
Author-X-Name-Last: Kim 
Title: Interrelationship between poverty and the wildland--urban interface in metropolitan areas of the Southern US 
Abstract:
  This research disentangles the relationship between Wildland--Urban
 Interface (WUI) area and poverty in metropolitan areas of the Southern US
 where urban sprawl has intensified and high-poverty regions have
 persisted. Results confirm that the enlargement of WUI areas increases
 urban poverty, which in turn causes WUI areas to expand. This finding
 validates the underlying hypothesis: expansion of the WUI excludes people
 in poor inner-city neighbourhoods from educational and economic
 opportunities that occur in suburban areas and the problems related to
 inner-city poverty push the rich away from the inner city. 
Journal: Applied Economics 
Pages: 1405-1416 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.541392 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.541392 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1405-1416




Template-Type: ReDIF-Article 1.0
Author-Name: Jos順鲥s 
Author-X-Name-First: Jos頍
Author-X-Name-Last: F鲥s 
Author-Name: Arnaud Reynaud 
Author-X-Name-First: Arnaud 
Author-X-Name-Last: Reynaud 
Author-Name: Alban Thomas 
Author-X-Name-First: Alban 
Author-X-Name-Last: Thomas 
Title: Water reuse in Brazilian manufacturing firms 
Abstract:
  This article examines the factors influencing manufacturing firms&#x2019;
 water reuse decision and analyses whether the structure of intake water
 demand differs between firms that adopt water reuse practices and those
 which do not. The first stage of the estimation model involves a Probit
 analysis of the water reuse decision and the second stage employs an
 endogenous switching regression to estimate the intake water demand
 equations. Results suggest that water charges may act as an effective
 mechanism in inducing firms to undertake water reuse investments and in
 reducing intake water demand. Estimates of the water demand price
 elasticities indicate that plants that reuse water are more sensitive to
 water price increases than plants without access to reuse technologies. 
Journal: Applied Economics 
Pages: 1417-1427 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543070 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543070 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1417-1427




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Shan Chen 
Author-X-Name-First: Yu-Shan 
Author-X-Name-Last: Chen 
Author-Name: Bi-Yu Chen 
Author-X-Name-First: Bi-Yu 
Author-X-Name-Last: Chen 
Title: Patent indicators as output variables of DEA to evaluate the efficiency of the computer communication equipment industry in United States 
Abstract:
  This study uses Data Envelopment Analysis (DEA) and several statistical
 approaches to evaluate the efficiency of the computer communication
 equipment industry in the US from the perspective of patent performance.
 There are two output variables -- patent counts and patent citations --
 and three input variables -- total assets, R&D expenditures and employee
 productivity -- in this study. The efficiency scores of the Charnes,
 Cooper and Rhodes (CCR) and Banker, Charnes and Cooper (BCC) models in
 this industry are 17.21% and 24.56%. Besides, this study finds out that
 there is &#x2018;the advantage of firm size&#x2019; for patent
 performance, and demonstrates that R&D expenditures and employee
 productivity have positive effects on patent performance in this industry.
 Furthermore, this study applies cluster analysis to divide the sample into
 three groups named &#x2018;Giant Enterprises&#x2019;, &#x2018;Indistinct
 Enterprises&#x2019; and &#x2018;Ameba Enterprises&#x2019;. This study
 points out that &#x2018;Indistinct Enterprises&#x2019; have the worst
 efficiency, because &#x2018;Giant Enterprises&#x2019; have the advantages
 of firm size, R&D resources and employee productivity and &#x2018;Ameba
 Enterprises&#x2019; possess the advantage of flexibility, but
 &#x2018;Indistinct Enterprises&#x2019; don&#x2019;t have any advantage. 
Journal: Applied Economics 
Pages: 1429-1432 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543071 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543071 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1429-1432




Template-Type: ReDIF-Article 1.0
Author-Name: Yuan-Ming Lee 
Author-X-Name-First: Yuan-Ming 
Author-X-Name-Last: Lee 
Author-Name: Kuan-Min Wang 
Author-X-Name-First: Kuan-Min 
Author-X-Name-Last: Wang 
Title: Searching for a better proxy for business cycles: with supports using US data 
Abstract:
  This study revises the original Current Depth of Recession (CDR) to prove
 that the Modified CDR (MCDR) is more suitable as a threshold variable than
 the CDR. We rebuild the CDR indicator and adjust its positive and negative
 ranges with the estimation results of the Threshold Autoregressive (TAR)
 model. We construct two TAR models utilizing CDR and MCDR as threshold
 variables, respectively. Estimation and test results of the root mean
 square error, Theil's inequality coefficient and the Diebold-Mariano (DM,
 1995) test suggest that MCDR performs better as a threshold variable than
 CDR. 
Journal: Applied Economics 
Pages: 1433-1442 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543073 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1433-1442




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Author-Name: Eduardo Roca 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Roca 
Title: A re-examination of the unbiased forward rate hypothesis in the presence of multiple unknown structural breaks 
Abstract:
  We test the Unbiased Forward Rate (UFR) hypothesis using new tests for
 cointegration developed by Hatemi-J (2008a) that allows for multiple
 unknown structural breaks. We analyse the Australian dollar (AUD), Euro
 (EUR), British pound (GBP) and Japanese yen (JPY) (versus the US dollar
 (USD)) spot rates and forward rates relationship during the period 5
 January 1999 to 28 December 2006. We find that the UFR does hold when the
 effects of the unknown structural breaks are taken into account. The
 parameters that we obtained were close to unity; hence, taking into
 account transaction cost and the existence of a risk premium, earning
 arbitrage profits may still not be possible. Thus, the markets for these
 currencies may still be considered as efficient. 
Journal: Applied Economics 
Pages: 1443-1448 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543075 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1443-1448




Template-Type: ReDIF-Article 1.0
Author-Name: M. Gartell 
Author-X-Name-First: M. 
Author-X-Name-Last: Gartell 
Title: The college-to-work transition during the 1990s: evidence from Sweden 
Abstract:
  This article analyses the time it takes for Swedish college graduates to
 start a full time job that lasts for 6 months or more. The focus is on the
 transition over time during the period 1991 to 1999. This period covers
 both upturns and downturns of the business cycle, providing a unique
 opportunity to consider the importance of the timing of graduation. The
 results show that the risk of unemployment and the unemployment duration
 have varied considerably with the business cycle, both within and between
 cohorts. For example, the field of education is of more importance for the
 outcomes during recessions. Further, the relative risk of unemployment has
 decreased over time for individuals with the highest degree of education
 whereas the unemployment duration has increased, indicating that the
 selection into unemployment for this group may have changed over time.
 This is interesting, not least in the light of the sharp expansion of the
 higher educational system during the study period. 
Journal: Applied Economics 
Pages: 1449-1469 
Issue: 11 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543078 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:11:p:1449-1469




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Gee Lin 
Author-X-Name-First: Chung-Gee 
Author-X-Name-Last: Lin 
Author-Name: Yu-Shan Wang 
Author-X-Name-First: Yu-Shan 
Author-X-Name-Last: Wang 
Title: Evaluating natural resource projects with embedded options and limited reserves 
Abstract:
  This study proposes a Dynamic Option Simulation (DOS) approach to
 evaluate natural resource investment projects that contain several
 embedded options and limited reserves. To construct a practical pricing
 model, DOS combines simulation and dynamic programming techniques that can
 value natural resource investments with multi-variable, early exercise,
 various embedded options and finite reserve properties. A copper mine
 project offers a demonstration; the mine holder may temporarily close,
 reopen and abandon the mine at specific times before the expiration date.
 The mine holder may also accelerate mining speed to be optimal, referred
 to as the acceleration option. Numerical analyses of the copper price and
 interest rate effects on the copper mine value suggest that DOS can
 efficiently assess complex, multiple-variable, American-style real options
 problems. 
Journal: Applied Economics 
Pages: 1471-1482 
Issue: 12 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543076 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:12:p:1471-1482




Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Hinloopen 
Author-X-Name-First: Jeroen 
Author-X-Name-Last: Hinloopen 
Author-Name: Charles van Marrewijk 
Author-X-Name-First: Charles 
Author-X-Name-Last: van Marrewijk 
Title: Power laws and comparative advantage 
Abstract:
  Using a comprehensive international trade data set we document empirical
 Power Laws (PLs) for the distribution of the interaction between countries
 as measured by revealed comparative advantage. Using the recently
 developed estimator by Gabaix and Ibragimov (2011), we find strong
 evidence in favour of PLs along the time, country and sector dimension for
 three different levels of data aggregation. This finding is not predicted
 by any of the existing trade theories. The estimated PL exponents
 characterizing the distribution of revealed comparative advantage are
 stable over time but differ between countries and sectors. These
 differences are related empirically to country and sector characteristics,
 including population size, Gross Domestic Product (GDP) and factor
 intensities. 
Journal: Applied Economics 
Pages: 1483-1507 
Issue: 12 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543079 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543079 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:12:p:1483-1507




Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Chern Su 
Author-X-Name-First: Yong-Chern 
Author-X-Name-Last: Su 
Author-Name: Han-Ching Huang 
Author-X-Name-First: Han-Ching 
Author-X-Name-Last: Huang 
Author-Name: Shiue-Fang Lin 
Author-X-Name-First: Shiue-Fang 
Author-X-Name-Last: Lin 
Title: Dynamic relations between order imbalance, volatility and return of top gainers 
Abstract:
  Investors have been working hard to find the best trading strategy.
 Previous studies suggest that order imbalance can be a state variable in
 explaining cross sectional stock return. In this article, we examine
 dynamic relations between order imbalance, volatility and stock return of
 top gainers. Then, we develop an order imbalance based trading strategy
 and explain the causality. We employ a time varying Generalized
 Autoregressive Conditional Heteroscedasticity (GARCH) model to investigate
 intraday dynamics among order imbalance, volatility and return. A
 significantly negative relation between order imbalance and volatility has
 been documented. The leverage effect proposed by Christie (1982) could
 explain the above result. Current period order imbalance explains current
 period volatility and stock return. Contemporaneous order imbalance has a
 significantly positive and lag-one order imbalance has a significantly
 negative influence on stock return. Time span of data and responsibility
 of market maker explain this phenomenon. Finally, we develop a profitable
 order imbalance based trading strategy. To explore the profitability of
 our trading strategy, we examine the causal relationship between return
 and order imbalance. We find that order imbalance is a good indicator for
 price discovery. Moreover, order imbalance is a better indicator for
 predicting returns in large firm size quartile. 
Journal: Applied Economics 
Pages: 1509-1519 
Issue: 12 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543080 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543080 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:12:p:1509-1519




Template-Type: ReDIF-Article 1.0
Author-Name: Bryan   C. McCannon 
Author-X-Name-First: Bryan   C. 
Author-X-Name-Last: McCannon 
Title: The value of multiple reviews 
Abstract:
  Expert opinion aids consumers purchasing a good they have no personal
 experience with. Previous research has found little to no impact of expert
 opinion on price. Evidence from panels of cigar reviewers shows that the
 explanatory power of the experts&#x2019; rating improves as more reviews
 are used. 
Journal: Applied Economics 
Pages: 1521-1525 
Issue: 12 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543081 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543081 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:12:p:1521-1525




Template-Type: ReDIF-Article 1.0
Author-Name: Boris Lokshin 
Author-X-Name-First: Boris 
Author-X-Name-Last: Lokshin 
Author-Name: Pierre Mohnen 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Mohnen 
Title: How effective are level-based R&D tax credits? Evidence from the Netherlands 
Abstract:
  This article examines the impact of the R&D fiscal incentive programme on
 R&D by Dutch firms. Taking a factor demand approach, we measure the
 elasticity of firm R&D capital accumulation to its user cost. Econometric
 models are estimated using a rich unbalanced panel of firm data covering
 the period 1996 to 2004 with firm specific R&D user costs varying with tax
 incentives. Using the estimated user cost elasticity, we perform a
 cost--benefit analysis of the R&D incentive programme. We find some
 evidence of additionality suggesting that the level based programme of R&D
 incentives in the Netherlands is effective in stimulating firms&#x2019;
 investment in R&D. However, the hypothesis of crowding out can be rejected
 only for small firms. The analysis also indicates that the level based
 nature of the fiscal incentive scheme leads to a substantial social
 deadweight loss. 
Journal: Applied Economics 
Pages: 1527-1538 
Issue: 12 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543083 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:12:p:1527-1538




Template-Type: ReDIF-Article 1.0
Author-Name: Massoud Metghalchi 
Author-X-Name-First: Massoud 
Author-X-Name-Last: Metghalchi 
Author-Name: Juri Marcucci 
Author-X-Name-First: Juri 
Author-X-Name-Last: Marcucci 
Author-Name: Yung-Ho Chang 
Author-X-Name-First: Yung-Ho 
Author-X-Name-Last: Chang 
Title: Are moving average trading rules profitable? Evidence from the European stock markets 
Abstract:
  This article examines the profitability of several simple technical
 trading rules for 16 European stock markets over the 1990 to 2006 period.
 Our results indicate that increasing moving average rules indeed have
 predictive power being able to discern recurring price patterns for
 profitable trading, even after accounting for the effects of data snooping
 bias. To assess the profitability of different technical trading rules and
 strategies, we adopt the White's (2000) Reality Check (RC) test that
 quantifies the data snooping bias and adjusts for its effects. Our
 empirical results also support the hypothesis that technical trading rules
 can outperform the buy and hold strategy after accounting for transaction
 costs. 
Journal: Applied Economics 
Pages: 1539-1559 
Issue: 12 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543084 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543084 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:12:p:1539-1559




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi 
Author-X-Name-First: Fredj 
Author-X-Name-Last: Jawadi 
Author-Name: Georges Prat 
Author-X-Name-First: Georges 
Author-X-Name-Last: Prat 
Title: Arbitrage costs and nonlinear adjustment in the G7 stock markets 
Abstract:
  This article aims to study stock price adjustments towards fundamentals
 due to the existence of arbitrage costs defined as the sum of transaction
 costs and a risky arbitrage premium associated with the uncertainty
 characterizing the fundamentals. Accordingly, it is shown that a two
 regime Smooth Transition Error Correction Model (STECM) is appropriate to
 reproduce the dynamics of stock price deviations from fundamentals in the
 G7 countries during the period 1969 to 2005. This model takes into account
 the interdependences or contagion effects between stock markets.
 Deviations appear to follow a quasi random walk in the central regime when
 prices are near fundamentals (i.e. when arbitrage costs are greater than
 expected arbitrage profits, the mean reversion mechanism is inactive),
 while they approach a white noise in the outer regimes (i.e. when
 arbitrage costs are lower than expected arbitrage profits, the mean
 reversion is active). Interestingly, as expected when arbitrage costs are
 heterogeneous, the estimated STECM shows that stock price adjustments are
 smooth and that the convergence speed depends on the size of the
 deviation. Finally, using two appropriate indicators proposed by Peel and
 Taylor (2000), both the magnitudes of under and overvaluation of stock
 price and the adjustment speed are calculated per date in the G7
 countries. These indicators show that the dynamics of stock price
 adjustment are strongly dependent on both the date and the country under
 consideration. 
Journal: Applied Economics 
Pages: 1561-1582 
Issue: 12 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.543085 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543085 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:12:p:1561-1582




Template-Type: ReDIF-Article 1.0
Author-Name: Long Liu 
Author-X-Name-First: Long 
Author-X-Name-Last: Liu 
Author-Name: Jan Ondrich 
Author-X-Name-First: Jan 
Author-X-Name-Last: Ondrich 
Author-Name: John Ruggiero 
Author-X-Name-First: John 
Author-X-Name-Last: Ruggiero 
Title: Estimating multiple-input-- multiple-output production functions with an analysis of credit unions 
Abstract:
  In this article, we develop a methodology to estimate production
 functions characterized by multiple inputs and multiple outputs. Aggregate
 output is estimated assuming a piecewise-linear production possibility set
 and by measuring distance to the boundary using nonparametric techniques.
 The parameters of the production function are then estimated in a
 second-stage using Ordinary Least Squares (OLS). The primary advantage of
 this approach is the ability to measure the output aggregate
 nonparametrically. The approach developed in this article is applied to
 estimate credit union production. An alternative approach developed by
 Vinod (1968) specifies an extended Cobb--Douglas equation and estimates
 the parameters using canonical correlation. Our new approach is compared
 to Vinod's canonical correlation approach. 
Journal: Applied Economics 
Pages: 1583-1589 
Issue: 12 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.548784 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548784 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:12:p:1583-1589




Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui 
Author-X-Name-First: Kenji 
Author-X-Name-Last: Matsui 
Title: Concentration of marketing channels and brand-level retailer margins: evidence from Japan 
Abstract:
  This article investigates the impacts of marketing channel concentration
 at each distributive channel stage on brand level retailer gross margins.
 A unique official Japanese dataset, the National Survey of Prices -- which
 reports brand level wholesale prices as well as retail prices of national
 brand items in various consumer product categories -- enables us to
 estimate the retail margin directly for each specified brand. The most
 notable conclusion is that an inverse relationship is found between brand
 level retailer margins and the degree of wholesaler concentration, which
 is consistent with empirical results in previous marketing and economic
 studies that investigated the impacts of manufacturer concentration on
 category level retailer margins. 
Journal: Applied Economics 
Pages: 1591-1601 
Issue: 12 
Volume: 44 
Year: 2012 
Month: 4 
X-DOI: 10.1080/00036846.2010.548785 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548785 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:12:p:1591-1601




Template-Type: ReDIF-Article 1.0
Author-Name: Mark   F. Owens 
Author-X-Name-First: Mark   F. 
Author-X-Name-Last: Owens 
Author-Name: Charles   L. Baum 
Author-X-Name-First: Charles   L. 
Author-X-Name-Last: Baum 
Title: The effects of welfare vehicle asset rules on vehicle assets 
Abstract:
  Before 1996, households were typically ineligible for welfare if they had
 assets worth more than $1000, where $1500 from each vehicle's value was
 excluded from this determination. However, the 1996 welfare reform act
 began allowing states to increase their asset limits and vehicle
 exclusions. This may prompt low-income households to reallocate resources
 to or from vehicles. We examine the effects of state vehicle asset rules
 on vehicle assets. Results show that liberalizing asset rules increases
 vehicle assets and that this increase is driven largely by eligible
 individuals increasing vehicle assets, with no evidence indicating that
 ineligible individuals reduce vehicle assets to become eligible. 
Journal: Applied Economics 
Pages: 1603-1619 
Issue: 13 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2010.548783 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548783 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:13:p:1603-1619




Template-Type: ReDIF-Article 1.0
Author-Name: Wan-Jiun Chen 
Author-X-Name-First: Wan-Jiun 
Author-X-Name-Last: Chen 
Title: The relationships of carbon dioxide emissions and income in a newly industrialized economy 
Abstract:
  This study investigates the carbon dioxide (CO<sub>2</sub>) emissions
 patterns in coordination with the economic development of Taiwan. The
 resulting quadratic relationship between emissions and income are partly
 due to the structural change of energy supply in Taiwan, with the
 introduction of nuclear energy in 1980 to 1986. This relationship is quite
 unique and different from the N-shaped relationships in some developed
 countries (de Bruyn and Opschoor, 1997; Friedl and Getzner, 2003). The
 CO<sub>2</sub> emissions in Taiwan increase with the increasing imports of
 raw materials for economic activities and the increasing use of
 electricity. There is no evidence that the substantial increase of
 Taiwan's service sector contributed to slowing its CO<sub>2</sub>
 emissions. 
Journal: Applied Economics 
Pages: 1621-1630 
Issue: 13 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2010.548786 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:13:p:1621-1630




Template-Type: ReDIF-Article 1.0
Author-Name: C. D𮠭Mora 
Author-X-Name-First: C. 
Author-X-Name-Last: D𮠭Mora 
Author-Name: A. Triguero-Cano 
Author-X-Name-First: A. 
Author-X-Name-Last: Triguero-Cano 
Title: Why do some firms contract out production? Evidence from firm-level panel data 
Abstract:
  This article examines which factors determine outsourcing decision using
 firm level data. According to the theoretical and empirical literature,
 firm, industry and market characteristics influence the likelihood of
 contracting out. We try to identify which firm characteristics are
 prerequisites for becoming an outsourcer. Using a dynamic panel data
 probit model, our results show that firms with previous subcontracting
 experience, higher wages, frequent market changes, R&D activities, product
 differentiation, large size and exporter status are more likely to engage
 in outsourcing. 
Journal: Applied Economics 
Pages: 1631-1644 
Issue: 13 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2010.548787 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548787 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:13:p:1631-1644




Template-Type: ReDIF-Article 1.0
Author-Name: Ather   H. Akbari 
Author-X-Name-First: Ather   H. 
Author-X-Name-Last: Akbari 
Author-Name: Yigit Aydede 
Author-X-Name-First: Yigit 
Author-X-Name-Last: Aydede 
Title: Effects of immigration on house prices in Canada 
Abstract:
  From the turn of the present century until late 2008, house prices in
 some developed countries, including Canada, rose sharply compared to the
 increases in their <italic>per capita</italic> incomes. Some in the public
 circles of these countries argue that immigration fueled this rise. Each
 year, Canada admits about 225&#x2009;000 immigrants, but information on
 the effect of immigration on house prices in this country is lacking. Our
 extensive econometric analysis based on panel data at census division
 levels obtained from the 1996, 2001 and 2006 population censuses indicates
 a statistically significant but small effect of immigration on prices of
 privately owned dwellings in Canada. An out migration of the native born
 from the areas where new immigrants settle, or an increased supply of
 housing due to expectations of higher demand in those areas may have
 caused this result. 
Journal: Applied Economics 
Pages: 1645-1658 
Issue: 13 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2010.548788 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:13:p:1645-1658




Template-Type: ReDIF-Article 1.0
Author-Name: Lota   D. Tamini 
Author-X-Name-First: Lota   D. 
Author-X-Name-Last: Tamini 
Author-Name: Bruno Larue 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Larue 
Author-Name: Gale West 
Author-X-Name-First: Gale 
Author-X-Name-Last: West 
Title: Technical and environmental efficiencies and best management practices in agriculture 
Abstract:
  An Input Distance Function (IDF) is estimated to empirically evaluate and
 analyse the technical and environmental efficiencies of 210 farms located
 in the Chaudi&#xE8;re watershed (Quebec), where water quality problems are
 particularly acute because of the production of undesirable outputs that
 are jointly produced with agricultural products. The true IDF is
 approximated by a flexible translog functional form estimated using a full
 information maximum likelihood method. Technical and environmental
 efficiencies are disaggregated across farms and account for spatial
 variations. Our results show that there is a significant correlation
 between the two efficiencies. The IDF is used to compute the cumulative
 Malmquist productivity index and the Fisher index. The two indices are
 used to measure changes in technology, profitability, efficiency and
 productivity in response to the adoption of two selected Best Management
 Practices (BMPs) whose objective is to reduce water pollution. We found
 significant differences across BMPs regarding the direction and the
 magnitude of their effect. 
Journal: Applied Economics 
Pages: 1659-1672 
Issue: 13 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2010.548789 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:13:p:1659-1672




Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Dacuycuy 
Author-X-Name-First: Lawrence 
Author-X-Name-Last: Dacuycuy 
Title: Parametric and semiparametric model representations of the conditional mean of wages: do they make a difference against nonparametric ones? 
Abstract:
  This study is concerned with the validation of parametric functional
 representations of the conditional mean of wages using Philippine data.
 This is done in the light of studies confirming relative weaknesses
 associated with parametric approaches to the modelling of human capital
 earnings functions (Zheng, 2000; Heckman <italic>et&#xA0;al</italic>.,
 2003; Lemieux, 2003; Miles and Mora, 2003). Extending the approaches in
 Lemieux (2003), Zheng (2000) and Miles and Mora (2003), we conduct
 consistent specification tests not only on parametric functional forms but
 also on the semiparametric partially linear model to verify the effect of
 modelling choice on the schooling-earnings as well as the
 experience-earnings relationships. Test results indicate that parametric
 models may still be valid representations of the wage function. In some
 instances, the semiparametric partially linear wage function holds promise
 as a modelling alternative to parametric models. 
Journal: Applied Economics 
Pages: 1673-1684 
Issue: 13 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2010.548790 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548790 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:13:p:1673-1684




Template-Type: ReDIF-Article 1.0
Author-Name: Christian A&#x3B2;mann 
Author-X-Name-First: Christian 
Author-X-Name-Last: A&#x3B2;mann 
Title: Determinants and costs of current account reversals under heterogeneity and serial correlation 
Abstract:
  Using large panel data sets for analysis of determinants and costs of
 reversals asks for controls of latent heterogeneity among countries. This
 article performs a Bayesian analysis, which allows for a parsimonious yet
 flexible handling of country specific heterogeneity via random
 coefficients and serially correlated errors. Consideration of persistence
 within the employed macroeconomic data is important to gauge the impact of
 explaining variables suggested by theory correctly. Bayesian specification
 tests provide evidence in favour of models incorporating heterogeneity and
 serial correlation. The results suggest that costs of reversals are
 overestimated, when country specific heterogeneity is neglected and stress
 the importance of external variables in explaining current account
 reversals. Results are checked for robustness against the underlying
 reversal definition. 
Journal: Applied Economics 
Pages: 1685-1700 
Issue: 13 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554370 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554370 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:13:p:1685-1700




Template-Type: ReDIF-Article 1.0
Author-Name: Jo-Hui Chen 
Author-X-Name-First: Jo-Hui 
Author-X-Name-Last: Chen 
Author-Name: Wan-Chieh Tsai 
Author-X-Name-First: Wan-Chieh 
Author-X-Name-Last: Tsai 
Title: A comparison of international income inequality: an ordered probit model analysis 
Abstract:
  In this study, the ordered probit model with marginal effect was applied
 to examine the key elements that influence changes in the Gini levels. The
 empirical results indicated that export incentives and poverty have a
 positive impact on the Gini levels. Moreover, the marginal effect revealed
 that export incentives increase income inequality for countries with
 higher inequality and reduce inequality for those countries with a
 relatively even income distribution. Likewise, the study found that the
 Asian Pacific Economic Cooperation (APEC) and the EU countries move from
 inequality to equality more efficiently than countries in the Latin
 American Integration Association (LAIA). 
Journal: Applied Economics 
Pages: 1701-1716 
Issue: 13 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554371 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554371 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:13:p:1701-1716




Template-Type: ReDIF-Article 1.0
Author-Name: Hau Chyi 
Author-X-Name-First: Hau 
Author-X-Name-Last: Chyi 
Title: The 1993 EITC expansion and low-skilled single mothers&#x2019; welfare use decision 
Abstract:
  Previous studies on low-skilled single mothers focus generally either on
 the binary welfare use or work decision. However, work among welfare
 participants has increased steadily since the mid-1990s. This study
 estimates the role of the 1993 Earned Income Tax Credit (EITC) expansion
 on the decline of welfare caseloads using a bivariate probit model. Using
 monthly Survey of Income and Program Participation (SIPP) information, I
 find that the 1993 EITC expansion has at least the same effect on reducing
 welfare use as the welfare reform initiatives. Moreover, the elasticity
 estimates indicate that single mothers, especially those who were not
 employed and dependent solely on welfare before the expansion, were the
 most responsive to the policy initiatives. Finally, the increase in work
 among welfare participants is due to the relative ineffectiveness of the
 policies in reducing the net population of those who are on welfare and
 work simultaneously. 
Journal: Applied Economics 
Pages: 1717-1736 
Issue: 13 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554372 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:13:p:1717-1736




Template-Type: ReDIF-Article 1.0
Author-Name: Jasim Al-Ajmi 
Author-X-Name-First: Jasim 
Author-X-Name-Last: Al-Ajmi 
Author-Name: J. H. Kim 
Author-X-Name-First: J. H. 
Author-X-Name-Last: Kim 
Title: Are Gulf stock markets efficient? Evidence from new multiple variance ratio tests 
Abstract:
  The purpose of this article is to test for the Random Walk Hypothesis
 (RWH) for seven stock markets in Gulf Cooperation Council (GCC) countries,
 and to determine the effect of the correction for thin trading. Three new
 multiple variance ratio tests are applied to both observed returns and
 returns corrected for thin trading. It is found overall that the RWH does
 not hold for the GCC stock markets at both daily and weekly frequencies.
 This evidence is particularly strong when daily returns are used, where
 the RWH is soundly rejected for both observed and corrected returns. 
Journal: Applied Economics 
Pages: 1737-1747 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554373 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1737-1747




Template-Type: ReDIF-Article 1.0
Author-Name: Concetta Castiglione 
Author-X-Name-First: Concetta 
Author-X-Name-Last: Castiglione 
Title: Technical efficiency and ICT investment in Italian manufacturing firms 
Abstract:
  The importance of Information and Communication Technologies (ICTs) is a
 much debated question with extensive literature aimed at understanding the
 role of ICTs in increasing economic growth, firm productivity and firm
 efficiency. Different methods to estimate firm efficiency are used in this
 study. In particular, both the translog and the Cobb--Douglas production
 functions are used in order to estimate the impact of ICT on Technical
 Efficiency (TE) in Italian manufacturing firms over the period 1995 to
 2003. Results show that ICT investments positively and significantly
 affected firms&#x2019; TE. Moreover, group, size and geographical position
 have a positive influence on TE. Finally, the results show that older
 firms are, on average, more efficient than newer ones. 
Journal: Applied Economics 
Pages: 1749-1763 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554374 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554374 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1749-1763




Template-Type: ReDIF-Article 1.0
Author-Name: Sharon   G. Levin 
Author-X-Name-First: Sharon   G. 
Author-X-Name-Last: Levin 
Author-Name: Paula   E. Stephan 
Author-X-Name-First: Paula   E. 
Author-X-Name-Last: Stephan 
Author-Name: Anne   E. Winkler 
Author-X-Name-First: Anne   E. 
Author-X-Name-Last: Winkler 
Title: Innovation in academe: the diffusion of information technologies 
Abstract:
  This study investigates the diffusion of two early Information
 technologies across 1348 institutions of higher education: (1) the
 adoption of Because It's Time Network (BITNET), a precursor to the
 Internet as we know it today and (2) the adoption of the Domain Name
 System (DNS) with its registration of domain names, an essential feature
 of the modern Internet. We find that the time paths of adoption for both
 generally exhibit the typical S shape found for other innovations. We
 identify factors likely responsible for the patterns observed and in the
 process extend the scope of the diffusion literature by incorporating
 insights from the optimization behaviour of nonprofits. Using a
 proportional hazards framework, we find that faster adoption occurred
 among institutions focused on research and doctoral education as well as
 among select liberal arts colleges relative to nonselect colleges. Faster
 adoption also occurred for larger institutions, suggesting that they
 benefited from economies of scale. Adoption was slower for institutions
 having a larger percent of female faculty members. Also, there is some
 evidence to suggest that public institutions were faster to innovate than
 private institutions, while institutions in the South tended to innovate
 more slowly than institutions located in other regions of the country. 
Journal: Applied Economics 
Pages: 1765-1782 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554375 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554375 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1765-1782




Template-Type: ReDIF-Article 1.0
Author-Name: Felix Rioja 
Author-X-Name-First: Felix 
Author-X-Name-Last: Rioja 
Author-Name: Neven Valev 
Author-X-Name-First: Neven 
Author-X-Name-Last: Valev 
Title: Financial structure and capital investment 
Abstract:
  This article studies the effects of financial structure on the growth of
 physical capital accumulation. Several theoretical works have proposed
 that banks are better than stock markets in funding capital investment. We
 test these theories with panel data for 62 industrial and developing
 countries using Generalized Method of Moments dynamic panel techniques.
 Results show that bank based financial systems are indeed associated with
 faster capital growth. This effect is especially strong in countries where
 banks can have close links to nonfinancial firms. 
Journal: Applied Economics 
Pages: 1783-1793 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554376 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554376 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1783-1793




Template-Type: ReDIF-Article 1.0
Author-Name: Frank   M. Fossen 
Author-X-Name-First: Frank   M. 
Author-X-Name-Last: Fossen 
Title: Gender differences in entrepreneurial choice and risk aversion -- a decomposition based on a microeconometric model 
Abstract:
  Why are female entrepreneurs so rare? In Germany, women exhibit both a
 lower entry rate into and higher exit rate from self-employment. To
 explain this gender gap, this study estimates a structural
 microeconometric model of transition rates that includes a standard risk
 aversion parameter. Inputs into the model are the expected value and
 variance of earnings from self-employment and dependent employment,
 estimated separately by gender and accounting for nonrandom selection into
 self-employment. The gender differential in the transition rates is
 decomposed using a novel extension of the Blinder--Oaxaca technique for
 nonlinear models. Women's higher estimated risk aversion explains the
 largest part of their higher exit rate but only a small portion of their
 lower entry rate. 
Journal: Applied Economics 
Pages: 1795-1812 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554377 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554377 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1795-1812




Template-Type: ReDIF-Article 1.0
Author-Name: Marshall Gramm 
Author-X-Name-First: Marshall 
Author-X-Name-Last: Gramm 
Author-Name: C.   Nicholas McKinney 
Author-X-Name-First: C.   Nicholas 
Author-X-Name-Last: McKinney 
Author-Name: Douglas   H. Owens 
Author-X-Name-First: Douglas   H. 
Author-X-Name-Last: Owens 
Title: Efficiency and arbitrage across parimutuel wagering pools 
Abstract:
  Previous studies have found some degree of inefficiency in betting
 markets. However, it is difficult to implement a strategy to take
 advantage of these biases. This article investigates and attempts to
 arbitrage interrelated betting markets by undertaking three betting
 simulations using two datasets comprised of parimutuel pools from US horse
 races. Two of the betting simulations are positive returns, but in the
 most realistic real-time simulation the losses are substantial. Profitable
 betting opportunities disappear due to last minute wagers which change the
 odds and increase market efficiency. 
Journal: Applied Economics 
Pages: 1813-1822 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554378 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554378 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1813-1822




Template-Type: ReDIF-Article 1.0
Author-Name: Gail Blattenberger 
Author-X-Name-First: Gail 
Author-X-Name-Last: Blattenberger 
Author-Name: Richard Fowles 
Author-X-Name-First: Richard 
Author-X-Name-Last: Fowles 
Author-Name: Peter   D. Loeb 
Author-X-Name-First: Peter   D. 
Author-X-Name-Last: Loeb 
Author-Name: Wm.   A. Clarke 
Author-X-Name-First: Wm.   A. 
Author-X-Name-Last: Clarke 
Title: Understanding the cell phone effect on vehicle fatalities: a Bayesian view 
Abstract:
  This article examines the potential effect of various factors on motor
 vehicle fatality rates using a rich set of panel data and classical
 regression analysis combined with Bayesian Extreme Bounds Analysis (EBA),
 Bayesian Model Averaging (BMA) and Stochastic Search Variable Selection
 (SSVS) procedures. The variables examined in the models include
 traditional motor vehicle and socioeconomic factors. In addition, the
 models address the effects of cell phone usage on such accidents. The use
 of both classical and Bayesian techniques diminish the model and parameter
 uncertainties which afflict more conventional modelling methods which rely
 on only one of the two methods. 
Journal: Applied Economics 
Pages: 1823-1835 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554379 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1823-1835




Template-Type: ReDIF-Article 1.0
Author-Name: Christa Frei 
Author-X-Name-First: Christa 
Author-X-Name-Last: Frei 
Author-Name: Alfonso Sousa-Poza 
Author-X-Name-First: Alfonso 
Author-X-Name-Last: Sousa-Poza 
Title: Overqualification: permanent or transitory? 
Abstract:
  This article analyses job mismatches in Switzerland based on a subjective
 measure of overqualification. According to job search and job matching
 theories, overqualification is a transitory problem. Other theories show
 that overqualification can also be of a permanent nature. We test the
 perpetuity of overeducation using panel data from the first eight waves of
 the Swiss Household Panel (SHP) covering the period 1999 to 2006. Our
 empirical analysis reveals little evidence for lasting rigidities that
 would cause permanent job mismatches. Rather, spells of overqualification
 are relatively short: about half of all individuals who were overqualified
 in a given year had an adequate job match 1 year later. While a short
 duration of overqualification would be consistent with job search and job
 matching theories, our observation that the probability of a job mismatch
 does not significantly decrease with experience is at odds with these
 theories. Our article provides an alternative explanation for this
 phenomenon: the constant accumulation of experience and qualifications
 throughout a worker's career implies that, for a good job match to be
 maintained, qualification-specific job requirements must increase as the
 worker ages. If this does not occur, even older workers face a risk of
 becoming overqualified. 
Journal: Applied Economics 
Pages: 1837-1847 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554380 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554380 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1837-1847




Template-Type: ReDIF-Article 1.0
Author-Name: Poomthan Rangkakulnuwat 
Author-X-Name-First: Poomthan 
Author-X-Name-Last: Rangkakulnuwat 
Author-Name: A. K. M.   Mahbub Morshed 
Author-X-Name-First: A. K. M.   Mahbub 
Author-X-Name-Last: Morshed 
Author-Name: H.   Holly Wang 
Author-X-Name-First: H.   Holly 
Author-X-Name-Last: Wang 
Author-Name: Sung   K. Ahn 
Author-X-Name-First: Sung   K. 
Author-X-Name-Last: Ahn 
Title: Price convergence in US cities: a cointegration approach with two structural breaks 
Abstract:
  This article investigates how the price indices of major cities of the US
 respond to the shock from a city and from monetary policy. We find that
 the crisis of Bretton Woods system in 1968 and the oil crisis in 1974
 should be incorporated as structural breaks in monetary policy variables
 and price indices. Using cointegration technique with structural break in
 our aggregated data, we find that the average half-life is 1.75 years,
 which is closer to what some of others found in disaggregated data, and
 that the interest rate is an effective tool for controlling cities&#x2019;
 price in short run. 
Journal: Applied Economics 
Pages: 1849-1862 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554381 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554381 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1849-1862




Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Chun Tseng 
Author-X-Name-First: Wei-Chun 
Author-X-Name-Last: Tseng 
Author-Name: Waraporn Ngamsomsuke 
Author-X-Name-First: Waraporn 
Author-X-Name-Last: Ngamsomsuke 
Title: The nested collective lottery that maximizes welfare under consumption interdependence 
Abstract:
  We develop a generalized lottery mechanism in this article that allows
 people to choose to succeed separately while retaining both merits
 (fairness and options to succeed jointly) of the collective lottery
 developed by Chen <italic>et&#xA0;al</italic>. (2010). We use the
 rationing of hunting permits in the US and Canada as examples to show the
 applicability of this generalized lottery mechanism. 
Journal: Applied Economics 
Pages: 1863-1866 
Issue: 14 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.556582 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556582 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:14:p:1863-1866




Template-Type: ReDIF-Article 1.0
Author-Name: James Giesecke 
Author-X-Name-First: James 
Author-X-Name-Last: Giesecke 
Author-Name: Nhi   Hoang Tran 
Author-X-Name-First: Nhi   Hoang 
Author-X-Name-Last: Tran 
Title: A general framework for measuring VAT compliance rates 
Abstract:
  Summary measures of Value Added Tax (VAT) compliance rates are valuable
 for identifying problem areas in VAT implementation. They are also
 essential for meaningful crosscountry and crosstime comparisons of VAT
 compliance. We present a comprehensive and general framework for
 calculating VAT compliance rates at both the economy wide and detailed
 sectoral levels. Unlike existing measures of VAT compliance, our framework
 isolates a compliance measure from the effects on VAT receipts of detailed
 features of VAT systems as actually implemented by tax authorities. These
 features include multiple VAT rates, exemptions, registration rates,
 refund limitations, informal activity, taxation of domestic nonresidents
 and undeclared imports. We implement our comprehensive VAT compliance
 measure for Vietnam, a country with a complex VAT system. Our estimate of
 Vietnam's VAT compliance rate is about 13 percentage points higher than
 that calculated by the most popular measure of compliance, Collection
 Efficiency (CE). Our method facilitates decomposition of the difference
 between CE and our VAT compliance measure into individual contributions by
 the statutory and structural features of Vietnam's VAT regime. 
Journal: Applied Economics 
Pages: 1867-1889 
Issue: 15 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.554382 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554382 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:15:p:1867-1889




Template-Type: ReDIF-Article 1.0
Author-Name: C. Guccio 
Author-X-Name-First: C. 
Author-X-Name-Last: Guccio 
Author-Name: G. Pignataro 
Author-X-Name-First: G. 
Author-X-Name-Last: Pignataro 
Author-Name: I. Rizzo 
Author-X-Name-First: I. 
Author-X-Name-Last: Rizzo 
Title: Determinants of adaptation costs in procurement: an empirical estimation on Italian public works contracts 
Abstract:
  It is widely agreed that rules governing public procurement should be
 designed to achieve value for money. However, in the public works sector,
 &#x2018;&#x2026;&#x2009;the good being procured is usually complex and
 hard to be exactly specified <italic>ex ante</italic>,
 &#x2026;&#x2009;[and] alterations to the original project might be needed
 after the contract is awarded. This may result in considerable
 discrepancies between the lowest winning bid and the actual costs that are
 incurred by the buyer&#x2019; (Bajari <italic>et&#xA0;al</italic>., 2006).
 There is now a wide body of literature focusing on cost escalation during
 the execution of contracts and their estimates reveal that it can be often
 quite large. This article is aimed at offering an empirical test of the
 determinants of adaptation costs in the public works procurement. Using a
 detailed data set on Italian public works contracts, we run an empirical
 analysis, grounded on the main conclusions reached in the literature, to
 test for the main drivers of adaptation costs. 
Journal: Applied Economics 
Pages: 1891-1909 
Issue: 15 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.556589 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556589 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:15:p:1891-1909




Template-Type: ReDIF-Article 1.0
Author-Name: Nikita Lyssenko 
Author-X-Name-First: Nikita 
Author-X-Name-Last: Lyssenko 
Author-Name: Roberto Mart󹑺-Espi&#xF1;eira 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Mart󹑺-Espi&#xF1;eira 
Title: Respondent uncertainty in contingent valuation: the case of whale conservation in Newfoundland and Labrador 
Abstract:
  In this article we investigate the issue of respondent uncertainty in
 contingent valuation studies while estimating the willingness to pay for a
 whale conservation program off the coasts of Newfoundland and Labrador. We
 use data from a phone survey administered to a sample
 (<italic>N</italic>&#x2009;=&#x2009;614) of adult Canadians, proposing a
 policy consisting of subsidizing and enforcing the use of acoustic devices
 that would reduce the likelihood that whales become entangled in fishing
 nets. A follow-up question asked respondents how certain they were about
 their answer to the main dichotomous-choice question, which allows us to
 investigate how the treatment of uncertainty affects value measures. A
 mean willingness to pay of about $81/year per respondent is estimated when
 accounting for the degree of certainty with which respondents expressed
 their willingness to pay. We also analyse payment vehicle effects using a
 split-sample approach whereby some respondents were asked a
 dichotomous-choice question about a tax contribution while others were
 asked about a voluntary donation instead. 
Journal: Applied Economics 
Pages: 1911-1930 
Issue: 15 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.556590 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556590 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:15:p:1911-1930




Template-Type: ReDIF-Article 1.0
Author-Name: D. Engel 
Author-X-Name-First: D. 
Author-X-Name-Last: Engel 
Author-Name: V. Procher 
Author-X-Name-First: V. 
Author-X-Name-Last: Procher 
Title: Export, FDI and firm productivity 
Abstract:
  Many empirical papers tested the theoretical predictions of Helpman,
 Melitz and Yeaple (HMY, 2004) which sorts firms at different
 internationalization states according to their productivity levels. While
 these papers ignore the fact, that the theoretical predictions of HMY only
 apply to firms that become engaged in market-driven Foreign Direct
 Investment (FDI), we apply a more precise methodology using a French firm
 sample with more than 110&#x2009;000 observations. Our results show that
 firms with a broader investment strategy, reflecting a great importance of
 market-driven motives, show higher productivity levels than firms with
 less encompassing foreign investment strategies. We conclude that the
 methodology is well-suited to sort firms according to the importance of
 market-driven FDI. 
Journal: Applied Economics 
Pages: 1931-1940 
Issue: 15 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.556591 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556591 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:15:p:1931-1940




Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda 
Author-X-Name-First: Kosei 
Author-X-Name-Last: Fukuda 
Title: Population growth and local public finance in Japanese cities 
Abstract:
  The determinants of Japanese city population growth for the period 2000
 to 2005 are empirically examined with particular attention to local public
 finance. The selection of one Fiscal Indicator (FI) from four alternatives
 -- ordinary balance ratio (OBR), ratio of outstanding borrowing (ROB) to
 the ordinary account, debt service payment ratio (DSPR) and financial
 power index (FPI) -- and the consideration of spatial
 auto&#x2010;correlation provide 12 regression models. In each regression,
 six additional explanatory variables are considered with reference to
 earlier empirical studies. Empirical results suggest that (1) three FIs,
 excluding DSPR, are significant; and (2) the number of local government
 officers and the ratio of graduates of not&#x2010;less&#x2010;than junior
 college are highly significant in all specifications. 
Journal: Applied Economics 
Pages: 1941-1949 
Issue: 15 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.556592 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556592 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:15:p:1941-1949




Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Boon Tan 
Author-X-Name-First: Hui-Boon 
Author-X-Name-Last: Tan 
Author-Name: Eng-Tuck Cheah 
Author-X-Name-First: Eng-Tuck 
Author-X-Name-Last: Cheah 
Author-Name: Johnnie   E. V. Johnson 
Author-X-Name-First: Johnnie   E. V. 
Author-X-Name-Last: Johnson 
Author-Name: Ming-Chien Sung 
Author-X-Name-First: Ming-Chien 
Author-X-Name-Last: Sung 
Author-Name: Chong-Hin Chuah 
Author-X-Name-First: Chong-Hin 
Author-X-Name-Last: Chuah 
Title: Stock market capitalization and financial integration in the Asia Pacific region 
Abstract:
  The Stock Market Capitalization (SMC) of a country, defined as the
 aggregated market value equity of companies in the respective equity
 market, is commonly used to measure the widening and deepening of stock
 market activity. SMC also influences economic growth predictions and
 public consensus concerning the value of the stock market. However, no
 previous work has examined the role this variable plays in the process of
 financial integration. This article provides an argument for the use of
 SMC as a means of deciding which countries are acting as leaders in
 creating a fully integrated equity market in the Asia Pacific region. A
 total of 12 countries in the Asia Pacific region were divided into
 &#x2018;Emerging Market&#x2019; and &#x2018;Advanced Market&#x2019; equity
 blocks. We examine the relative size of the speed of adjustments derived
 from the error correction models following the Engle--Granger two-step
 procedure framework and apply the Granger causality test. The results
 suggest that Hong Kong Special Administrative Region (SAR) possesses the
 necessary credentials to act as market leader. In fact, Hong Kong SAR
 appears to be the only contender for market leader of both the
 &#x2018;Emerging Market&#x2019; and &#x2018;Advanced Market&#x2019; equity
 blocks. 
Journal: Applied Economics 
Pages: 1951-1961 
Issue: 15 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.556593 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556593 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:15:p:1951-1961




Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Cozza 
Author-X-Name-First: Claudio 
Author-X-Name-Last: Cozza 
Author-Name: Franco Malerba 
Author-X-Name-First: Franco 
Author-X-Name-Last: Malerba 
Author-Name: Maria   Luisa Mancusi 
Author-X-Name-First: Maria   Luisa 
Author-X-Name-Last: Mancusi 
Author-Name: Giulio Perani 
Author-X-Name-First: Giulio 
Author-X-Name-Last: Perani 
Author-Name: Andrea Vezzulli 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Vezzulli 
Title: Innovation, profitability and growth in medium and high-tech manufacturing industries: evidence from Italy 
Abstract:
  The main goal of this article is to assess the impact of product
 innovation on the economic performance of firms operating in Medium and
 High-Tech (M&HT) industries. Using information from a large and unique
 dataset on Italian firms we estimate, by means of Propensity Score (PS)
 matching methods, a positive and significant &#x2018;innovation
 premium&#x2019; both in terms of profitability and growth (in the
 short-run) for those firms who introduced new innovative products. We also
 find that this innovation premium is particularly large for small firms
 and even more so when considering new established firms. 
Journal: Applied Economics 
Pages: 1963-1976 
Issue: 15 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.556594 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556594 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:15:p:1963-1976




Template-Type: ReDIF-Article 1.0
Author-Name: Natalie Chun 
Author-X-Name-First: Natalie 
Author-X-Name-Last: Chun 
Author-Name: Minjung Park 
Author-X-Name-First: Minjung 
Author-X-Name-Last: Park 
Title: The impact of clinical trial insurance coverage mandates on racial minorities and low income individuals 
Abstract:
  Mandates are often used as a policy tool to decrease disparities in
 access to health treatments and services. The lack of insurance coverage
 for routine care costs associated with participating in clinical trials is
 often cited as a major barrier to clinical trial participation, especially
 for low income individuals and racial minorities who are highly
 cost-sensitive. This article examines if state mandates requiring health
 insurers to cover routine care costs for patients enroled in clinical
 trials helped reduce the gap in clinical trial access between the affluent
 and the poor and between whites and racial minorities. Using data on the
 locations of cancer clinical trials initiated in the US between 2001 and
 2007 as well as Census data on income and race, we examine the effects of
 the policies on clinical trial sponsors&#x2019; location choices. Our
 analysis indicates that the policies helped increase availability of phase
 2 clinical trials in areas with a high proportion of black residents,
 thereby partially mitigating race-based disparity in clinical trial
 access. We do not find any evidence that the policies helped alleviate
 income-based disparity in clinical trial access. 
Journal: Applied Economics 
Pages: 1977-1984 
Issue: 15 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.556595 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556595 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:15:p:1977-1984




Template-Type: ReDIF-Article 1.0
Author-Name: Hip&#xF3;lito Sim&#xF3;n 
Author-X-Name-First: Hip&#xF3;lito 
Author-X-Name-Last: Sim&#xF3;n 
Title: The gender gap in earnings: an international comparison with European matched employer--employee data 
Abstract:
  This article examines the origin of the cross-country heterogeneity of
 the gender wage gap in nine European countries using a unique harmonized
 international matched employer--employee dataset. Our novel findings
 suggest that cross-country differences in the intensity of female
 segregation into low-paying workplaces is a relevant source of
 international differences in the size of the gap and that international
 disparities in the characteristics of wage structures are not very
 influential. On the other hand, the evidence is not fully conclusive with
 respect to the influence on the variations of the gap of different
 macroeconomic, social and institutional country-specific features
 considered previously in the literature. 
Journal: Applied Economics 
Pages: 1985-1999 
Issue: 15 
Volume: 44 
Year: 2012 
Month: 5 
X-DOI: 10.1080/00036846.2011.558477 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558477 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:15:p:1985-1999




Template-Type: ReDIF-Article 1.0
Author-Name: Georgios   P. Kouretas 
Author-X-Name-First: Georgios   P. 
Author-X-Name-Last: Kouretas 
Author-Name: Mark   E. Wohar 
Author-X-Name-First: Mark   E. 
Author-X-Name-Last: Wohar 
Title: The dynamics of inflation: a study of a large number of countries 
Abstract:
  Over the last twenty years the statistical properties of inflation
 persistence has been the subject of intense investigation and debate
 without reaching a unanimous conclusion yet. In this article we attempt to
 shed further light to this debate using a battery of econometric
 techniques in order to provide robust evidence on the degree of inflation
 persistence and whether this has changed during the period in which
 several countries have followed inflation-targeting regimes or new
 monetary regimes. We consider the inflation rates of thirty developed and
 emerging economies using quarterly data for the period 1958 to 2007 which
 include alternative monetary policy regimes. The coefficient of the
 inflation parameter is estimated by Ordinary Least Squares (OLS),
 Autoregressive Moving Average (ARMA) and Autoregressive Fractionally
 Integrated Moving Average (ARFIMA) models. Furthermore, the grid-bootstrap
 Median Unbiased (MUB) estimator approach developed by Hansen (1999) is
 used to estimate the finite sample OLS estimates coupled with the 95%
 symmetric confidence interval. We also examine parameter stability of
 persistence coefficients by estimating a model with time-varying
 parameters. 
Journal: Applied Economics 
Pages: 2001-2026 
Issue: 16 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.556596 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556596 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:16:p:2001-2026




Template-Type: ReDIF-Article 1.0
Author-Name: Ebru Guven Solakoglu 
Author-X-Name-First: Ebru Guven 
Author-X-Name-Last: Solakoglu 
Author-Name: Abdulkadir Civan 
Author-X-Name-First: Abdulkadir 
Author-X-Name-Last: Civan 
Title: Does morbidity matter? Perceived health status in explaining the share of healthcare expenditures 
Abstract:
  We argue that the demand for healthcare services can be better explained
 by individual need based variables rather than by macro variables such as
 the Gross Domestic Product (GDP) per capita and the share of public
 healthcare expenditures. This study introduces a self-rated health
 variable called <italic>morbidity</italic> that describes individual needs
 for health care -- healthy individuals <italic>need</italic> less health
 care than sick ones -- and that is measured through personal interviews
 conducted by the Organization for Economic Co-operation and Development
 (OECD). In addition, stationary properties of the series are considered in
 order to understand the effect of shocks to expenditure behaviour on
 health care. Stationary test results show that we should not only use
 differenced values for the model variables but also incorporate
 time-specific effects into the model. Using the appropriate specification
 and accounting for the time effect, we find evidence supporting the
 hypothesis that the share of healthcare expenditure in GDP rises with the
 increased <italic>need</italic> for health care. The <italic>need</italic>
 for health care is also found to be more important than per capita GDP
 when explaining the change in the share of healthcare expenditures for the
 examined countries. 
Journal: Applied Economics 
Pages: 2027-2034 
Issue: 16 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.558476 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558476 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:16:p:2027-2034




Template-Type: ReDIF-Article 1.0
Author-Name: Maximilian   D. Schmeiser 
Author-X-Name-First: Maximilian   D. 
Author-X-Name-Last: Schmeiser 
Title: Expanding New York State's Earned Income Tax Credit Programme: the effect on work, income and poverty 
Abstract:
  Given its favourable employment incentives and ability to target the
 working poor, the Earned Income Tax Credit (EITC) has become the primary
 antipoverty programme at both the federal and state levels. However, when
 evaluating the effect of EITC programmes on income and poverty,
 governments generally calculate the effect using simple accounting, where
 the value of the state or federal EITC benefit is added to a person's
 income. These calculations omit the behavioural incentives created by the
 existence of these programmes, the corresponding effect on labour supply
 and hours worked, and therefore the actual effect on income and poverty.
 This article simulates the full effect of an expansion of the New York
 State EITC benefit on employment, hours worked, income, poverty and
 programme expenditures. These results are then compared to those omitting
 labour supply effects. Relative to estimates excluding labour supply
 effects, the preferred behavioural results show that an expansion of the
 New York State EITC increases employment by an additional 14&#x2009;244
 persons, labour earnings by an additional $95.8 million, family income by
 an additional $84.5 million, decreases poverty by an additional
 56&#x2009;576 persons and increases costs to the State by $29.7 million. 
Journal: Applied Economics 
Pages: 2035-2050 
Issue: 16 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.558478 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558478 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:16:p:2035-2050




Template-Type: ReDIF-Article 1.0
Author-Name: Anirvan Banerji 
Author-X-Name-First: Anirvan 
Author-X-Name-Last: Banerji 
Author-Name: Allan   P. Layton 
Author-X-Name-First: Allan   P. 
Author-X-Name-Last: Layton 
Author-Name: Lakshman Achuthan 
Author-X-Name-First: Lakshman 
Author-X-Name-Last: Achuthan 
Title: Dating the &#x2018;world business cycle&#x2019; 
Abstract:
  By mid-2008 the world was witnessing the unfolding of a relatively rare
 macroeconomic phenomenon, namely, the onset of what one might call a
 synchronized international -- or &#x2018;world&#x2019; -- recession. But
 what exactly is a &#x2018;synchronized world recession&#x2019;? This
 article proposes a practical definition of a &#x2018;synchronized world
 recession&#x2019; and a putative set of historical post-WWII dates for a
 &#x2018;world business cycle chronology&#x2019;. Further, using a
 constructed &#x2018;world coincident index of economic indicators&#x2019;
 and an associated &#x2018;world leading index of economic
 indicators&#x2019;, this article demonstrates that evidence was available
 from early in the second half of 2007 that the world was indeed sliding
 inexorably towards its fourth synchronized world recession since WWII
 (although, interestingly, already its second of the twenty-first
 century!). 
Journal: Applied Economics 
Pages: 2051-2063 
Issue: 16 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.558479 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558479 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:16:p:2051-2063




Template-Type: ReDIF-Article 1.0
Author-Name: Julie   L. Hotchkiss 
Author-X-Name-First: Julie   L. 
Author-X-Name-Last: Hotchkiss 
Author-Name: John   C. Robertson 
Author-X-Name-First: John   C. 
Author-X-Name-Last: Robertson 
Title: Asymmetric labour force participation decisions 
Abstract:
  This article finds compelling evidence of asymmetric labour force
 participation decisions across demographic groups in response to changes
 in labour market conditions. This behaviour is consistent with predictions
 from the standard labour-leisure choice model and suggests that asymmetry
 in individual behaviour plays some role in the observed asymmetry of the
 aggregate unemployment rate. It is estimated that the weighted average
 difference in response to a one percentage point change in unemployment
 rates is sizeable when compared to the average monthly change in the
 aggregate labour force. 
Journal: Applied Economics 
Pages: 2065-2073 
Issue: 16 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.558480 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558480 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:16:p:2065-2073




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon 
Author-X-Name-First: Robert 
Author-X-Name-Last: Dixon 
Author-Name: G. C. Lim 
Author-X-Name-First: G. C. 
Author-X-Name-Last: Lim 
Title: A univariate model of aggregate labour productivity 
Abstract:
  In this article, we set out a model of labour productivity which
 distinguishes between shocks which change productivity permanently and
 shocks which have transient affects on productivity. We show that this
 model is a type of unobserved components model -- a random walk with drift
 plus noise model. The advantage of this approach is that it provides a
 coherent framework to identify the deterministic trend growth component
 and also the productivity enhancing (or technology related) stochastic
 components. The model is applied to aggregate labour productivity in
 Australia and the time series of technology shocks extracted is used to
 shed some light on the contributions of policy reforms to productivity. 
Journal: Applied Economics 
Pages: 2075-2080 
Issue: 16 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.558481 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558481 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:16:p:2075-2080




Template-Type: ReDIF-Article 1.0
Author-Name: Hyun Seok Kim 
Author-X-Name-First: Hyun Seok 
Author-X-Name-Last: Kim 
Author-Name: B.   Wade Brorsen 
Author-X-Name-First: B.   Wade 
Author-X-Name-Last: Brorsen 
Title: Can real option values explain apparent storage at a loss? 
Abstract:
  Since decisions to sell grain are irreversible, waiting to sell grain can
 have a real option value. This real option value may explain why producers
 appear to store too long. A new seasonal mean reversion model is estimated
 that allows prices to be a random walk with drift within a season, but
 mean reverting across crop years. Unless prices are extremely low, selling
 before mean reversion begins is optimal. Thus, the real option value of
 waiting does not explain why some producers seem to store at a loss in the
 latter part of crop years. 
Journal: Applied Economics 
Pages: 2081-2090 
Issue: 16 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.558483 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558483 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:16:p:2081-2090




Template-Type: ReDIF-Article 1.0
Author-Name: Manuel   Leon Navarro 
Author-X-Name-First: Manuel   Leon 
Author-X-Name-Last: Navarro 
Author-Name: Rafael   Flores de Frutos 
Author-X-Name-First: Rafael   Flores 
Author-X-Name-Last: de Frutos 
Title: Consumption and housing wealth breakdown of the effect of a rise in interest rates 
Abstract:
  In this article the effect on consumption of a fall in housing wealth and
 housing prices, resulting from an increase in interest rates is estimated.
 With the help of a dynamic multiequation, macroeconomic model, the
 consumer response function is broken down into two parts: a direct
 response related to a rise in the cost of credit and another indirect one
 related to the deterioration of the property market. Estimation of the
 theoretical model is done by means of a Vectorial Error-Correction (VEC)
 model. 
Journal: Applied Economics 
Pages: 2091-2110 
Issue: 16 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.558484 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558484 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:16:p:2091-2110




Template-Type: ReDIF-Article 1.0
Author-Name: Gianna   C. Giannelli 
Author-X-Name-First: Gianna   C. 
Author-X-Name-Last: Giannelli 
Author-Name: Lucia Mangiavacchi 
Author-X-Name-First: Lucia 
Author-X-Name-Last: Mangiavacchi 
Author-Name: Luca Piccoli 
Author-X-Name-First: Luca 
Author-X-Name-Last: Piccoli 
Title: GDP and the value of family caretaking: how much does Europe care? 
Abstract:
  This study estimates the size and value of unpaid family caretaking
 activities at a European level. While at a country level several studies
 are available, a comprehensive evaluation for Europe as a whole was
 missing so far, mainly due to data limitations. This article fills this
 gap using a method that merges the information of the European Survey of
 Income and Living Conditions (EU-SILC) with the Harmonised European Time
 Use Surveys (HETUS). Monetary values of unpaid family domestic work and
 unpaid family childcare work are obtained applying both the opportunity
 cost and the market replacement approaches. For Europe as a whole, the
 total value of these activities ranges between 17% and 31.6% of the EU
 Gross Domestic Product (GDP), depending on the applied methodology. The
 national values of these activities are discussed and an interpretation of
 the country and gender differentials in family caretaking costs is given
 in terms of differences in culture, economic development and welfare
 state. 
Journal: Applied Economics 
Pages: 2111-2131 
Issue: 16 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.558485 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558485 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:16:p:2111-2131




Template-Type: ReDIF-Article 1.0
Author-Name: Jose   Ignacio Gimenez-Nadal 
Author-X-Name-First: Jose   Ignacio 
Author-X-Name-Last: Gimenez-Nadal 
Author-Name: Jose   Alberto Molina 
Author-X-Name-First: Jose   Alberto 
Author-X-Name-Last: Molina 
Author-Name: Raquel Ortega 
Author-X-Name-First: Raquel 
Author-X-Name-Last: Ortega 
Title: Self-employed mothers and the work-family conflict 
Abstract:
  We analyse how self-employed and employed mothers allocate their time
 throughout the day in order to balance their work and family
 responsibilities. To that end, we use time diary information from Spain, a
 country with a low level of women's participation in the labour market
 (Spanish Time Use Survey (STUS), 2002--2003). We find that self-employed
 mothers devote less time to market work, and more time to tertiary (e.g.
 sleeping, eating) and leisure activities, than employed mothers in a
 working day. We also find differences between employed and self-employed
 mothers in the timing of market work, child care and housework throughout
 the day, and we find complementarities between the timing of market work
 of working mothers and the timing of child care of their male partners.
 Our results on timing are consistent with the hypothesis that
 self-employment stands as a possible way for mothers to have greater
 control over the timing of work (flexible hours), and that they may
 therefore be able to work odd shifts, when the spouse is available to care
 for the children. 
Journal: Applied Economics 
Pages: 2133-2147 
Issue: 17 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.558486 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558486 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:17:p:2133-2147




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund 
Author-X-Name-First: Christian 
Author-X-Name-Last: Grund 
Author-Name: Judith Przemeck 
Author-X-Name-First: Judith 
Author-X-Name-Last: Przemeck 
Title: Subjective performance appraisal and inequality aversion 
Abstract:
  Making use of a subjective performance appraisal system, it is a
 well-established fact that many supervisors tend to assess the employees
 too good (leniency bias) and that the appraisals hardly vary across
 employees of a certain supervisor (centrality bias). We explain these two
 biases in a simple theoretical model and discuss determinants of the size
 of the biases. 
Journal: Applied Economics 
Pages: 2149-2155 
Issue: 17 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.560109 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.560109 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:17:p:2149-2155




Template-Type: ReDIF-Article 1.0
Author-Name: Nick Johnstone 
Author-X-Name-First: Nick 
Author-X-Name-Last: Johnstone 
Author-Name: Ivan Ha&#x161;&#x10D;i&#x10D; 
Author-X-Name-First: Ivan 
Author-X-Name-Last: Ha&#x161;&#x10D;i&#x10D; 
Author-Name: Julie Poirier 
Author-X-Name-First: Julie 
Author-X-Name-Last: Poirier 
Author-Name: Marion Hemar 
Author-X-Name-First: Marion 
Author-X-Name-Last: Hemar 
Author-Name: Christian Michel 
Author-X-Name-First: Christian 
Author-X-Name-Last: Michel 
Title: Environmental policy stringency and technological innovation: evidence from survey data and patent counts 
Abstract:
  This article uses patent data to examine the impact of public
 environmental policy on innovations in environment-related technology. The
 analysis is conducted using data on an unbalanced panel of 77 countries
 between 2001 and 2007, drawing upon data obtained from the European Patent
 Office (EPO) World Patent Statistical (PATSTAT) database and the World
 Economic Forum's (WEF) &#x2018;Executive Opinion Survey&#x2019;. The
 results support our hypotheses concerning the positive role of both
 general innovative capacity and environmental policy stringency on
 environment-related innovation. A subsequent two-stage model assesses the
 factors which drive innovation in general and uses the fitted values to
 estimate environmental innovation. While the analysis is conducted on a
 smaller sample, they confirm the findings of the reduced-form model. 
Journal: Applied Economics 
Pages: 2157-2170 
Issue: 17 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.560110 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.560110 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:17:p:2157-2170




Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Granier 
Author-X-Name-First: Laurent 
Author-X-Name-Last: Granier 
Author-Name: S颡stien Trinquard 
Author-X-Name-First: S颡stien 
Author-X-Name-Last: Trinquard 
Title: Predation in off-patent drug markets 
Abstract:
  In 2009, Sanofi-Aventis, whose generic subsidiary is Winthrop, merges
 with the generic firm, Zentiva. This article fills the gap in the
 theoretical literature concerning mergers in pharmaceutical markets. To
 prevent generic firms from increasing their market share, some brand-name
 firms produce generics themselves, called pseudo-generics. We develop a
 Cournot duopoly model by considering the pseudo-generics production as a
 mergers' catalyst. We show that a brand-name company always has an
 incentive to purchase its competitor. The key insight of this article is
 that the brand-name laboratory can increase its merger gain by producing
 pseudo-generics beforehand. In some cases, pseudo-generics would not
 otherwise be produced and this production is then a predatory strategy. 
Journal: Applied Economics 
Pages: 2171-2186 
Issue: 17 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.562169 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.562169 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:17:p:2171-2186




Template-Type: ReDIF-Article 1.0
Author-Name: Declan Curran 
Author-X-Name-First: Declan 
Author-X-Name-Last: Curran 
Title: British regional growth and sectoral trends: global and local spatial econometric approaches 
Abstract:
  This article looks beneath the surface of British sub-regional aggregate
 Gross Value Added (GVA) growth over the period 1995 to 2007, by examining
 how the differing growth dynamics of the secondary and services sectors
 have influenced the overall regional growth process. A spatial econometric
 analysis is undertaken which tests regional secondary and services real
 GVA <italic>per capita</italic> for absolute and conditional convergence
 at the NUTS 3 level. Both local and global spatial analysis techniques are
 utilized in order to gain a detailed insight into the growth process over
 the period 1995 to 2007. 
Journal: Applied Economics 
Pages: 2187-2201 
Issue: 17 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.562170 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.562170 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:17:p:2187-2201




Template-Type: ReDIF-Article 1.0
Author-Name: Raul Conejeros 
Author-X-Name-First: Raul 
Author-X-Name-Last: Conejeros 
Author-Name: Miguel Vargas 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Vargas 
Title: Segregation, exclusion and compensating transfers under a dynamic setting 
Abstract:
  Anas (2002) has shown that there exist equilibria with exclusion and the
 payments of economic transfers where whites and blacks are better off than
 in the case without them. Anas&#x2019; model is static so it does not
 consider important dynamics aspect of this phenomenon. Hence, we have
 developed a dynamic general equilibrium model of segregation. Our main
 findings are: there exists a path of transfers such as there is a dynamic
 equilibrium where whites and blacks are better off with exclusion and
 transfers; and higher levels of prejudices imply lower levels of
 aggregated utility. Finally, the effects of a prejudice shock can last
 between 2 and 30 years, hence policymakers must pay attention to sudden
 positive prejudice shocks in order to implement policies to reduce their
 consequences. 
Journal: Applied Economics 
Pages: 2203-2215 
Issue: 17 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.562171 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.562171 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:17:p:2203-2215




Template-Type: ReDIF-Article 1.0
Author-Name: Jorge   V. P鲥z-Rodr򍑥z 
Author-X-Name-First: Jorge   V. 
Author-X-Name-Last: P鲥z-Rodr򍑥z 
Author-Name: Beatriz   G. L. Valcarcel 
Author-X-Name-First: Beatriz   G. L. 
Author-X-Name-Last: Valcarcel 
Title: Do product innovation and news about the R&D process produce large price changes and overreaction? The case of pharmaceutical stock prices 
Abstract:
  Do extreme price changes of pharmaceutical stocks reflect unexpected
 scientific information produced during the drug R&D process, especially
 the approval of new drugs, but also pre- and clinical trial results,
 recalls and withdrawals? Do stock prices initially overreact to such
 information? We modelled market-adjusted daily changes in stock prices of
 the 17 biggest pharmaceutical firms worldwide for the period from 1989 to
 2008 to detect large price changes (outliers), using an Autoregressive
 Moving Average--Generalized Autoregressive Conditional Heteroscedasticity
 (ARMA--GARCH) dynamic econometric model. Then, we matched those outliers
 with news produced during the drug R&D process, and tested the hypothesis
 of no overreaction by examining cumulative abnormal returns. Our results
 show that there were 261 abnormal market-adjusted daily returns. In 60% of
 the cases, we were able to assign a plausible cause; i.e. Food and Drug
 Administration (FDA) approvals in 6% of these cases, news of a scientific
 nature in another 25%. Only 10 of 1721 FDA approvals of new drugs during
 the study period were related to abnormally large returns. The impact of
 negative news items on stock prices is larger than of positive news items.
 The overreaction hypothesis is rejected; there is no price backlash,
 therefore, the efficient market hypothesis is not violated. 
Journal: Applied Economics 
Pages: 2217-2229 
Issue: 17 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.562172 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.562172 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:17:p:2217-2229




Template-Type: ReDIF-Article 1.0
Author-Name: Luke   Byrne Willard 
Author-X-Name-First: Luke   Byrne 
Author-X-Name-Last: Willard 
Title: Does inflation targeting matter? A reassessment 
Abstract:
  A number of countries have adopted the policy of inflation targeting and
 a substantial literature exists on the virtues of inflation targeting in
 reducing inflation (Bernanke <italic>et&#xA0;al</italic>., 1999). However,
 results in the existing empirical literature conflict. This article uses a
 number of identification approaches (instrumental variables, assumptions
 about heteroscedasticity, panel-fixed effects and a potential natural
 experiment) to estimate the effect of inflation targeting on inflation for
 a sample of Organization for Economic Co-operation and Development (OECD)
 countries. Generally, it finds that the effect is small and insignificant.
 It also finds little evidence that inflation variability, inflation
 uncertainty, inflation volatility or inflation expectations fall with
 targeting suggesting that inflation targeting does not affect a number of
 variables likely to be of interest to policy makers. 
Journal: Applied Economics 
Pages: 2231-2244 
Issue: 17 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564136 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564136 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:17:p:2231-2244




Template-Type: ReDIF-Article 1.0
Author-Name: Sylvia Brandt 
Author-X-Name-First: Sylvia 
Author-X-Name-Last: Brandt 
Author-Name: Sara Gale 
Author-X-Name-First: Sara 
Author-X-Name-Last: Gale 
Author-Name: Ira Tager 
Author-X-Name-First: Ira 
Author-X-Name-Last: Tager 
Title: The value of health interventions: evaluating asthma case management using matching 
Abstract:
  Despite large public investments in asthma interventions, there are few
 rigorous assessments of these programmes and little understanding of what
 comprises an effective intervention. There is a lack of appropriate data,
 little technical support is provided, and the programs themselves have
 little incentive to conduct these analyses. In this study, we apply
 optimal full matching using propensity scores to estimate the impact of an
 asthma intervention programme across a range of health outcomes. Our
 participation model is derived using the Deletion, Substitution and
 Addition (DSA) algorithm, a method used in epidemiology for model
 selection. We find that the asthma programme in question has no
 significant effect on participants that distinguishes them from matched
 nonparticipants, but it is not clear whether this is due to the
 effectiveness of the programme, heterogeneity of effects or barriers
 outside the programme's control. Our findings do show how current
 programmes could be modified to increase their effectiveness and better
 inform future research. 
Journal: Applied Economics 
Pages: 2245-2263 
Issue: 17 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564137 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564137 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:17:p:2245-2263




Template-Type: ReDIF-Article 1.0
Author-Name: Anita   Alves Pena 
Author-X-Name-First: Anita   Alves 
Author-X-Name-Last: Pena 
Title: Economies of scale and gender discrimination in transition: the case of the Republic of Tajikistan 
Abstract:
  This article tests for economies of scale and for evidence of
 discrimination based on gender lines in intra-household consumption
 allocations using data from the Living Standards Survey in the Republic of
 Tajikistan (TLSS). Overall results support the existence of household
 economies of scale in Tajikistan; however, empirical evidence supporting
 boy--girl discrimination is limited despite anecdotal evidence otherwise. 
Journal: Applied Economics 
Pages: 2265-2281 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564138 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2265-2281




Template-Type: ReDIF-Article 1.0
Author-Name: Debra Dwyer 
Author-X-Name-First: Debra 
Author-X-Name-Last: Dwyer 
Author-Name: Hong Liu 
Author-X-Name-First: Hong 
Author-X-Name-Last: Liu 
Author-Name: John   A. Rizzo 
Author-X-Name-First: John   A. 
Author-X-Name-Last: Rizzo 
Title: Does patient trust promote better care? 
Abstract:
  Information asymmetries favouring the supplier in the production of good
 health have long been acknowledged as an anomaly in medical markets
 creating the potential for inefficiency. Such asymmetries may undermine
 the physician/patient relationship. And given these asymmetries, patient
 trust may play an important role in successful physician/patient
 relationships. This agency relationship has been studied for many years in
 the context of Fee-for-Service (FFS) reimbursement. But the market has
 changed considerably given the combination of an influx of information and
 the penetration of managed care&#x2009;-&#x2009;both of which have shifted
 some decision-making power away from the physician. An additional
 important factor in the physician/agency relationship that is also
 changing is patient trust. Where patient trust was implicit in the system
 with predicted positive effects on health outcomes when FFS was the norm,
 now trust itself is not a given, and its effect on the doctor--patient
 relationship may be evolving. We study how trust impacts patients&#x2019;
 perceptions about quality of care, and whether these relationships differ
 by health insurance type. We find that Health Maintenance Organization
 (HMO) patients have significantly lower trust in their primary care
 physicians than those with more traditional coverage. Using a
 multi-dimensional index of patients&#x2019; perceptions about the quality
 of care they receive from their physicians, we also find that trust has no
 significant effect on perceived quality for non-HMO patients, but
 significantly improves perceived outcomes for HMO patients. We conclude
 that trusting patients are more likely to have a better doctor-patient
 relationship than those who are skeptical in the HMO setting. Perhaps
 given lack of provider choice, it requires a level of trust in general to
 be compliant and satisfied with assigned physicians. In the non-HMO
 setting where consumers are now armed with more information and free to
 make choices, trust becomes less important. These results have
 implications for how decisions are made in the market for health services
 we face today and ultimately for public health policy. 
Journal: Applied Economics 
Pages: 2283-2295 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564139 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564139 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2283-2295




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Bolli 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Bolli 
Author-Name: Mathias Zurlinden 
Author-X-Name-First: Mathias 
Author-X-Name-Last: Zurlinden 
Title: Measurement of labour quality growth caused by unobservable characteristics 
Abstract:
  The standard economy-wide indices of labour quality (or human capital)
 largely ignore the role of unobservable worker characteristics. In this
 article, we develop a methodology for identifying the contributions of
 both observable and unobservable worker characteristics in the presence of
 the incidental parameter problem. Based on data for Switzerland over the
 period 1991 to 2006, we find that a large part of growth in labour quality
 is caused by shifts in the distribution of unobservable worker
 characteristics. The overall index differs little from the standard
 indices, but contributions to growth attributed to education and age are
 corrected downwards. 
Journal: Applied Economics 
Pages: 2297-2308 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564140 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564140 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2297-2308




Template-Type: ReDIF-Article 1.0
Author-Name: Gil Aharoni 
Author-X-Name-First: Gil 
Author-X-Name-Last: Aharoni 
Author-Name: Oded   H. Sarig 
Author-X-Name-First: Oded   H. 
Author-X-Name-Last: Sarig 
Title: Hot hands and equilibrium 
Abstract:
  Past literature suggests that success rates in professional basketball
 are independent of past performance and this has been interpreted as
 evidence that the commonly shared belief in Hot Hands
 (<italic>HH</italic>) is a cognitive illusion. This is often cited as
 evidence of biased decision making, even when financial stakes are high.
 We argue that this interpretation ignores changes in both teams&#x2019;
 behaviour after the detection of an <italic>HH</italic> player. We derive
 testable hypotheses that differentiate between <italic>HH</italic> as a
 real phenomenon and a cognitive illusion. Analysing an entire NBA season,
 our results are consistent with <italic>HH</italic> being a real
 phenomenon. 
Journal: Applied Economics 
Pages: 2309-2320 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564141 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2309-2320




Template-Type: ReDIF-Article 1.0
Author-Name: Lusine Lusinyan 
Author-X-Name-First: Lusine 
Author-X-Name-Last: Lusinyan 
Author-Name: John Thornton 
Author-X-Name-First: John 
Author-X-Name-Last: Thornton 
Title: The intertemporal relation between government revenue and expenditure in the United Kingdom, 1750 to 2004 
Abstract:
  We examine the intertemporal relation between government revenue and
 expenditure in the UK during 1750 to 2004. We pay particular attention to
 long run trends by applying a battery of unit root and cointegration
 techniques to the data, and we use a modified Granger causality test on
 data spans organized around structural breaks in the series. The results
 suggest that, allowing for structural breaks, UK real revenue and spending
 are <italic>I</italic>(1) series and cointegrated and that Granger
 causality runs from government spending to revenue. As such, the
 &#x2018;spend-tax&#x2019; hypothesis appears to best characterize the long
 run intertemporal relation between government revenue and spending in the
 UK. 
Journal: Applied Economics 
Pages: 2321-2333 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564142 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2321-2333




Template-Type: ReDIF-Article 1.0
Author-Name: David Vera 
Author-X-Name-First: David 
Author-X-Name-Last: Vera 
Title: How responsive are banks to monetary policy? 
Abstract:
  I provide evidence that the response of commercial banks&#x2019; loans to
 monetary policy shocks in the US has changed. In particular, using bank
 data from the period 1959 to 2007, I show that the effect of monetary
 policy shocks on banks&#x2019; credit has significantly decreased over
 time. My results contrast significantly with previous finding in the
 literature (Bernanke and Blinder, 1992). As potential explanations to the
 lower effect of monetary shocks, I describe some of the changes in bank
 regulation that triggered bank consolidation and changes in the bank-size
 distribution, as well as changes in the banks&#x2019; portfolio towards an
 increasing share of real estate loans. 
Journal: Applied Economics 
Pages: 2335-2346 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564143 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564143 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2335-2346




Template-Type: ReDIF-Article 1.0
Author-Name: Harry Bloch 
Author-X-Name-First: Harry 
Author-X-Name-Last: Bloch 
Author-Name: Patricia Fraser 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Fraser 
Author-Name: Garry MacDonald 
Author-X-Name-First: Garry 
Author-X-Name-Last: MacDonald 
Title: Commodity prices: how important are real and nominal shocks? 
Abstract:
  We consider the response of both nominal and real commodity prices on
 world markets to real and nominal shocks by hypothesizing that nominal
 shocks can permanently affect nominal commodity prices, but can have only
 temporary effects on real commodity prices. Real shocks, in contrast, can
 have permanent as well as temporary effects on both nominal and real
 commodity prices. When nominal and real shocks are decomposed in this
 manner, real shocks are found to be of much greater importance to the
 observed movements in commodity prices. We use the Blanchard and Quah (BQ,
 1989) decomposition to obtain the permanent and temporary components of
 the real commodity price series and relate this to the rate of growth of
 world industrial production as an indicator of business cycle movements.
 The results suggest that the impact of the business cycle is
 self-stabilizing in that there is an initial positive effect on growth in
 commodity prices followed by a fully offsetting negative effect. 
Journal: Applied Economics 
Pages: 2347-2357 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564144 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2347-2357




Template-Type: ReDIF-Article 1.0
Author-Name: Eric   C. Y. Ng 
Author-X-Name-First: Eric   C. Y. 
Author-X-Name-Last: Ng 
Title: What determines productivity performance of telecommunications services industry? A cross-country analysis 
Abstract:
  This article investigates the key factors that determine the productivity
 performance of telecommunications services industry. A simple theoretical
 model is used to illustrate that the Total Factor Productivity (TFP)
 growth is attributable to the effects of scale economies, market
 competition and technical change. We then examine empirically the effect
 of various factors on the TFP growth in the industry using panel data in
 12 Organization for Economic Co-operation and Development (OECD) countries
 for the period 1983 through 2003. The empirical results are consistent
 with the theoretical prediction. A new finding in this article is that
 higher machinery and equipment (M&E) capital intensity and human capital
 contribute to higher TFP growth in the telecommunications services
 industry. The decomposition analysis also suggests that technical change
 induced by changes in M&E capital intensity and human capital are
 important sources of productivity performance in the industry across the
 OECD countries, contributing to about 20--50% and 2--7% of TFP growth,
 respectively. These findings highlight the importance of improving the
 conditions for M&E capital investment and the quality of human capital,
 which in turn could facilitate the adoption of new technologies and
 enhance the productivity in the industry. 
Journal: Applied Economics 
Pages: 2359-2372 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564145 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564145 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2359-2372




Template-Type: ReDIF-Article 1.0
Author-Name: Donghyun Oh 
Author-X-Name-First: Donghyun 
Author-X-Name-Last: Oh 
Author-Name: Almas Heshmati 
Author-X-Name-First: Almas 
Author-X-Name-Last: Heshmati 
Author-Name: Hans L&#xF6;&#xF6;f 
Author-X-Name-First: Hans 
Author-X-Name-Last: L&#xF6;&#xF6;f 
Title: Technical change and total factor productivity growth for Swedish manufacturing and service industries 
Abstract:
  This article presents alternative specifications of the production
 functions of a large panel of Swedish firms for the period 1992 to 2000.
 The period can be characterized as a transition when long-run productivity
 growth in the Swedish economy improved from being among the weakest to one
 of the strongest within the Organization for Economic Co-operation and
 Development (OECD). In order to present a detailed exploration of this
 dramatic change, the time trend and general index models are applied to
 estimate Total Factor Productivity (TFP) growth, rate of technical change
 and returns to scale. The models are extended to allow for firm specific
 as well as time-varying technical change. The parametric TFP measures are
 also compared with the nonparametric Solow residual, and several
 hypotheses are tested to explain the growth patterns in the Swedish
 economy. It is found that the improved growth rate, initially starting in
 large exporting manufacturing firms, after a deep economic crisis at the
 beginning of the 1990s, spilled over to the rest of the economy, both
 manufacturing and services. 
Journal: Applied Economics 
Pages: 2373-2391 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564147 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564147 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2373-2391




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Salvino 
Author-X-Name-First: Robert 
Author-X-Name-Last: Salvino 
Author-Name: Michael   T. Tasto 
Author-X-Name-First: Michael   T. 
Author-X-Name-Last: Tasto 
Author-Name: Geoffrey   K. Turnbull 
Author-X-Name-First: Geoffrey   K. 
Author-X-Name-Last: Turnbull 
Title: A direct test of direct democracy: New England town meetings 
Abstract:
  Representative democracies govern most locales in the US, making it
 difficult to compare performance relative to direct democracy. New England
 states, however, provide an opportunity to test both direct and
 representative democracy at the local level. This article uses revealed
 preference axioms to compare spending patterns in New England towns and
 cities against median voter hypothesis benchmarks. Contrary to previous
 evidence, we find no differences between direct and representative
 democracy. The results suggest that horizontal competition arising from
 local fragmentation minimize differences between direct and representative
 local government, providing support for wider applicability of median
 voter-based empirical models of local government behaviour in the US. 
Journal: Applied Economics 
Pages: 2393-2402 
Issue: 18 
Volume: 44 
Year: 2012 
Month: 6 
X-DOI: 10.1080/00036846.2011.564148 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564148 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:18:p:2393-2402




Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Franz 
Author-X-Name-First: Wolfgang 
Author-X-Name-Last: Franz 
Author-Name: Nicole Guertzgen 
Author-X-Name-First: Nicole 
Author-X-Name-Last: Guertzgen 
Author-Name: Stefanie Schubert 
Author-X-Name-First: Stefanie 
Author-X-Name-Last: Schubert 
Author-Name: Markus Clauss 
Author-X-Name-First: Markus 
Author-X-Name-Last: Clauss 
Title: Assessing the employment effects of the German welfare reform -- an integrated CGE-microsimulation approach 
Abstract:
  The purpose of this article is to quantify the employment effects of the
 recent German welfare reform. The key element of this reform was to merge
 the coexisting transfer systems Social Assistance (SA) and Unemployment
 Assistance (UA) into one unified benefit (Arbeitslosengeld II -- ALG II).
 We also consider a second reform scenario that is intended to further
 improve the labour supply incentives of low-skilled workers. Our
 methodological contribution is to use an integrated CGE-microsimulation
 model. In adopting such an approach, we are able to combine the advantages
 of microsimulation studies by accounting for the large amount of
 heterogeneity in terms of households&#x2019; preferences and budget
 constraints with the advantages of an applied general equilibrium model.
 The latter permits us to identify potential general equilibrium
 repercussions through changes in wages and unemployment. The simulations
 indicate that the introduction of ALG II results in a negligible increase
 in employment of only 45&#x2009;000 individuals. In contrast, a cut in
 benefit levels combined with a decrease in transfer withdrawal is shown to
 produce somewhat larger employment effects of about 190&#x2009;000
 individuals. 
Journal: Applied Economics 
Pages: 2403-2421 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.564149 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564149 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2403-2421




Template-Type: ReDIF-Article 1.0
Author-Name: David   A. Savage 
Author-X-Name-First: David   A. 
Author-X-Name-Last: Savage 
Author-Name: Benno Torgler 
Author-X-Name-First: Benno 
Author-X-Name-Last: Torgler 
Title: Nerves of steel? Stress, work performance and elite athletes 
Abstract:
  There is a notable shortage of empirical research directed at measuring
 the magnitude and direction of stress effects on performance in a
 controlled environment. One reason for this is the inherent difficulties
 in identifying and isolating direct performance measures for individuals.
 Additionally, most traditional work environments contain a multitude of
 exogenous factors impacting individual performance, but controlling for
 all such factors is generally unfeasible (omitted variable bias).
 Moreover, instead of asking individuals about their self-reported stress
 levels, we observe workers&#x2019; behaviour in situations that can be
 classified as stressful. For this reason, we have stepped outside the
 traditional workplace in an attempt to gain greater controllability of
 these factors using the sports environment as our experimental space. We
 empirically investigate the relationship between stress and performance,
 in an extreme pressure situation (football penalty kicks) in a winner take
 all sporting environment (FIFA World Cup and UEFA European Cup
 competitions). Specifically, we examine all the penalty shootouts between
 1976 and 2008 covering in total 16 events. The results indicate that
 extreme stressors can have a positive or negative impact on
 individuals&#x2019; performance. On the other hand, more commonly
 experienced stressors do not affect professionals&#x2019; performances. 
Journal: Applied Economics 
Pages: 2423-2435 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.564150 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564150 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2423-2435




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Chung Hsu 
Author-X-Name-First: Yi-Chung 
Author-X-Name-Last: Hsu 
Author-Name: Chien-Chiang Lee 
Author-X-Name-First: Chien-Chiang 
Author-X-Name-Last: Lee 
Title: The impact of military technology transfer on economic growth: international evidence 
Abstract:
  The purpose of this article is to measure the impact of military
 technology transfer on economic growth for 67 selected countries during
 the period 2000 to 2005 through the application of the Malmquist
 productivity index, which is broken down into efficiency change and
 technical change. Our main findings are as follows. First, technology
 diffusion is all-pervading in half of the sampled countries due to pure
 efficiency and scale efficiency changes. Second, a higher-income level and
 an excess of arms imports lead to innovative activities. Third,
 middle-income countries have higher efficiency and pure efficiency
 changes; these contribute to higher total productivity change. Finally,
 after separating the impact of capital investment from that of arms
 imports, the diffusion of military technology has a more positive and
 substantial impact on economic growth, thereby revealing the presence of
 externalities between countries. 
Journal: Applied Economics 
Pages: 2437-2449 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.564152 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564152 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2437-2449




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew   W. Hobbs 
Author-X-Name-First: Andrew   W. 
Author-X-Name-Last: Hobbs 
Author-Name: Kenneth   P. Jameson 
Author-X-Name-First: Kenneth   P. 
Author-X-Name-Last: Jameson 
Title: Measuring the effect of bi-directional migration remittances on poverty and inequality in Nicaragua 
Abstract:
  This article examines the impact of migrants&#x2019; remittances on
 poverty and income distribution in Nicaragua. Nicaraguan emigrants are
 fairly evenly distributed between the US and Costa Rica. Poorer migrants
 overwhelmingly migrate to Costa Rica; richer migrants favour the US. This
 bi-directional flow provides an opportunity to examine the distributional
 impacts of remittances in a situation that offers distinct opportunities
 to different groups of prospective migrants. To this end, we use Heckman's
 (1979) sample selection method to predict counterfactual
 &#x2018;no-migration&#x2019; consumption figures for Nicaraguan households
 whose members have emigrated. Using these estimates, we are able to
 compare the current situation to one in which migration had not occurred.
 We find that migration to Costa Rica results in increased per capita
 household consumption for poor households, while migration to the US leads
 to increase in middle class households. The rate, depth and severity of
 poverty as measured by the Foster, Greer, Thorbecke Indices (Foster
 <italic>et&#xA0;al</italic>., 1984) decrease, though only slightly.
 However, inequality appears to increase, likely because the middle class
 benefits from US migration, while the poor tend to make it no farther than
 Costa Rica. 
Journal: Applied Economics 
Pages: 2451-2460 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.564153 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564153 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2451-2460




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Docherty 
Author-X-Name-First: Paul 
Author-X-Name-Last: Docherty 
Author-Name: Steve Easton 
Author-X-Name-First: Steve 
Author-X-Name-Last: Easton 
Title: Market efficiency and continuous information arrival: evidence from prediction markets 
Abstract:
  Two regularities in financial economics are that prices underreact to
 news events and that they display short term momentum. This article tests
 for the presence of these regularities in prediction markets offered by
 the betting exchange Betfair on the 2008 Ryder Cup Golf Competition.
 Betfair offered in play prediction markets on the individual match play
 pairings and on the Cup result, with trading being virtually continuous in
 all markets. Modelled probabilities of the Cup result were updated
 continuously using trades in the individual match play pairings. These
 probabilities were then compared with the probabilities of the Cup result
 implied by odds in that market. The odds in the market for the Cup result
 underreact to both good and bad news that is provided by changes in the
 odds in the markets for the individual pairings. Further, these modelled
 probabilities Granger cause changes in the probabilities of the Cup result
 implied by odds in the market on that outcome. In addition, economically
 and statistically significant evidence of momentum is found in the odds in
 the market on the Cup result. 
Journal: Applied Economics 
Pages: 2461-2471 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.564154 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564154 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2461-2471




Template-Type: ReDIF-Article 1.0
Author-Name: J. Rosell-Martinez 
Author-X-Name-First: J. 
Author-X-Name-Last: Rosell-Martinez 
Author-Name: P. Sanchez-Sellero 
Author-X-Name-First: P. 
Author-X-Name-Last: Sanchez-Sellero 
Title: Foreign direct investment and technical progress in Spanish manufacturing 
Abstract:
  This article analyses the effects of Foreign Direct Investment (FDI) on
 technical progress in Spanish manufacturing. Particularly, we study how
 FDI's contributions vary depending on the economic structure of the
 industry. The results show that most FDI goes to capital-intensive
 sectors, especially when those sectors are also Research and Development
 (R&D)-intensive. Our estimates of the Solow residual show that the
 positive effect of contemporaneous and lagged FDI on manufacturing
 productivity is only attributable to capital and R&D intensive industries
 in what seems to be related to a dynamic capabilities explanation or to
 complementarities with R&D expenditures. 
Journal: Applied Economics 
Pages: 2473-2489 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.564155 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564155 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2473-2489




Template-Type: ReDIF-Article 1.0
Author-Name: Tino Berger 
Author-X-Name-First: Tino 
Author-X-Name-Last: Berger 
Title: The dynamics of short- and long-run capital mobility: evidence from a time-varying parameter error-correction model 
Abstract:
  This article analyses the dynamic evolution of capital mobility in eight
 Organization for Economic Co-operation and Development (OECD) countries
 over the period 1850 to 1992. We estimate an error-correction model of
 saving and investment that allows to distinguish between short- and
 long-run capital mobility. The parameters of the error-correction model
 are allowed to be time-vary ing and are estimated using the Kalman filter
 and maximum likelihood technique. We find that both short- and long-run
 capital mobility was very high at the end of the nineteenth century but
 since then decreased in most countries. However, the magnitude of changes
 in long-run capital mobility is very small while the absolute change of
 short-run capital mobility is substantial. 
Journal: Applied Economics 
Pages: 2491-2498 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.564352 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564352 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2491-2498




Template-Type: ReDIF-Article 1.0
Author-Name: Ren頍orissette 
Author-X-Name-First: Ren頍
Author-X-Name-Last: Morissette 
Author-Name: Yuqian Lu 
Author-X-Name-First: Yuqian 
Author-X-Name-Last: Lu 
Author-Name: Feng Hou 
Author-X-Name-First: Feng 
Author-X-Name-Last: Hou 
Title: Marriage, cohabitation and women's response to changes in the male wage structure 
Abstract:
  Using microdata and grouped data that cover the period 1996 to 2006, we
 assess the extent to which cohabiting women adjust their labour supply to
 a lesser extent, if any, than married women in response to changes in male
 wages. Both microdata regressions and grouping estimators unambiguously
 indicate that cohabiting women respond less to variation in male wages
 than married women. However, the magnitude of the difference is not
 sizeable. We also assess the magnitude of married men's and cohabiting
 men's own wage elasticities and find that they do not differ much.
 Combined with the fact that male earnings account for roughly two-thirds
 of family earnings, these two findings explain why the impact of changes
 in male wages on family earnings is very similar for married couples and
 cohabiting couples: in both cases, a 10% decline in male wages appears to
 induce roughly a 6% drop in family earnings. 
Journal: Applied Economics 
Pages: 2499-2516 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566180 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566180 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2499-2516




Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Corsi 
Author-X-Name-First: Alessandro 
Author-X-Name-Last: Corsi 
Author-Name: Cristina Salvioni 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Salvioni 
Title: Off- and on-farm labour participation in Italian farm households 
Abstract:
  Most farms are family business, both in developed and developing
 countries. Labour allocation choices of farm household members are
 therefore relevant both for production choices in the farm and for rural
 labour markets. In particular, off-farm work and combination of on- and
 off-farm work (pluriactivity) are viewed as an efficient allocation of
 household labour resources. Moreover, labour choice of the children of the
 farm household is relevant for farm succession. In this article, we extend
 previous literature by estimating in an unified framework labour
 participation choices both for on- and off-farm work for operators,
 spouses and their eldest children in working age, using a five equation
 multivariate probit. 
Journal: Applied Economics 
Pages: 2517-2526 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566181 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566181 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2517-2526




Template-Type: ReDIF-Article 1.0
Author-Name: Kuo   S. Huang 
Author-X-Name-First: Kuo   S. 
Author-X-Name-Last: Huang 
Author-Name: Sophia   Wu Huang 
Author-X-Name-First: Sophia   Wu 
Author-X-Name-Last: Huang 
Title: Consumer welfare effects of increased food and energy prices 
Abstract:
  In this study, the authors evaluated how much price changes in food and
 energy -- two basic living expenditures competing for consumers&#x2019;
 budgets -- would affect consumer welfare. We first estimated a US complete
 demand system to quantify the interdependent demand relationships among 11
 categories of consumption expenditures. Among the estimates, the own price
 elasticities of both food and energy are relatively inelastic, a finding
 that explains the dynamics of the recent soaring food and energy prices.
 The estimated demand elasticities were then incorporated into the
 measurement of Hicksian compensating variation to analyse the consumer
 welfare effects of price changes in food and energy. The results indicated
 that an increase in food and energy prices would increase compensated
 expenditures or incur a substantial consumer welfare loss, creating an
 especially heavy burden for low income households. 
Journal: Applied Economics 
Pages: 2527-2536 
Issue: 19 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566182 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566182 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:19:p:2527-2536




Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer 
Author-X-Name-First: Dierk 
Author-X-Name-Last: Herzer 
Author-Name: Michael Grimm 
Author-X-Name-First: Michael 
Author-X-Name-Last: Grimm 
Title: Does foreign aid increase private investment? Evidence from panel cointegration 
Abstract:
  This article uses panel cointegration and causality techniques to examine
 the long run relationship between foreign aid and private investment. Our
 main result is that aid has a statistically significant negative effect on
 private investment. This result is robust to outliers, different measures
 and forms of aid, sample selection and the sample period. In addition, we
 find that long run causality runs in both directions, suggesting that an
 increase in aid reduces private investment and that, in turn, higher
 private investment leads to lower aid inflows. 
Journal: Applied Economics 
Pages: 2537-2550 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566183 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566183 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2537-2550




Template-Type: ReDIF-Article 1.0
Author-Name: Aekapol Chongvilaivan 
Author-X-Name-First: Aekapol 
Author-X-Name-Last: Chongvilaivan 
Title: Learning by exporting and high-tech capital deepening in Singapore manufacturing industries, 1974--2006 
Abstract:
  A number of fundamental factors enhance the growth of industries&#x2019;
 productivity. Among others, the export-led and high-tech capital deepening
 strategies are widely adopted by developing economies. This article
 attempts to empirically investigate the extent to which both industrial
 development policies affect the Total Factor Productivity Growth (TFPG) in
 Singapore manufacturing industries during the period from 1974 to 2006.
 Using the panel data estimations, I find that both development strategies
 bring about TFPG <italic>via</italic> nonneutral technological growth, and
 the former more largely explains TFPG than does the latter. This study
 captures the measure of learning by exporting by the lagged export
 intensity and therefore contributes to the literature, in which only the
 case of whether or not firms are active in export markets is
 conventionally employed. Methodologically, my main contributions are a
 more detailed treatment of (nonneutral) technological changes, and an
 alternative measure of export intensity. 
Journal: Applied Economics 
Pages: 2551-2568 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566184 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566184 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2551-2568




Template-Type: ReDIF-Article 1.0
Author-Name: Yui Suzuki 
Author-X-Name-First: Yui 
Author-X-Name-Last: Suzuki 
Title: Binding constraint on economic growth under export-oriented industrialization and globalization 
Abstract:
  The two-gap model of economic growth implies that different constraints
 on economic growth, namely the savings and the foreign exchange
 availability, are binding at different times. This article estimates these
 varying binding constraints in 16 countries in East and Southeast Asia and
 Latin America, and explores their differences across countries, regions
 and periods. I show that the East and Southeast Asian countries, which are
 recognized to be successful in export-oriented industrialization, are less
 constrained by the foreign exchange availability with reinforced export
 capacity than the Latin American countries, which had carried some inertia
 of import substituting industrialization policy until the 1980s. In
 addition, the economic growth turns out to be more constrained by the
 domestic savings in recent years, which can be a reflection of capital
 account liberalization policies typically implemented in the late 1980s
 and 1990s, and/or a diminishing return to export-led growth. In either
 case, this might be a factor underlining the recent reconsideration of
 export-oriented development strategy to balance past excessive dependence
 on the external demand in several countries in East and Southeast Asia. 
Journal: Applied Economics 
Pages: 2569-2576 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566185 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566185 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2569-2576




Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Tregenna 
Author-X-Name-First: Fiona 
Author-X-Name-Last: Tregenna 
Title: What are the distributional implications of halving poverty in South Africa when growth alone is not enough? 
Abstract:
  The United Nations Millennium Declaration commits to halving extreme
 poverty between 2000 and 2015. The South African government has set a goal
 of halving poverty by 2014, although the meaning of this goal has not yet
 been defined. This article frames government's stated target of halving
 poverty by 2014 in terms of specific measures of the poverty gap and
 poverty headcount ratio, using income and expenditure survey microdata.
 With the poverty line as defined here, approximately half the South
 African population falls below the poverty line. Despite this, the
 aggregate poverty gap is surprisingly small at about 3% of gross domestic
 product. Projections of poverty in 2014 under various growth scenarios
 indicate that growth alone will be insufficient to halve poverty by then,
 and that any worsening of distribution will put the target of halving
 poverty by 2014 far beyond reach. However, projections of the effects of a
 range of growth and distributional scenarios on poverty, using a new
 method for simulating pro-poor distributional change, indicate that
 halving poverty appears feasible with moderate growth rates and fairly
 mild pro-poor distributional change. The results are indicative as to the
 scale of distributional changes necessary to halve poverty under various
 growth scenarios. 
Journal: Applied Economics 
Pages: 2577-2596 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566186 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566186 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2577-2596




Template-Type: ReDIF-Article 1.0
Author-Name: Myeong   Hwan Kim 
Author-X-Name-First: Myeong   Hwan 
Author-X-Name-Last: Kim 
Author-Name: Nodir Adilov 
Author-X-Name-First: Nodir 
Author-X-Name-Last: Adilov 
Title: The lesser of two evils: an empirical investigation of foreign direct investment-pollution tradeoff 
Abstract:
  This article investigates the relationship between Foreign Direct
 Investment (FDI) and pollution measured by carbon dioxide (CO<sub>2</sub>)
 emissions. The results suggest that while lax environmental regulations
 might attract FDI, the foreign companies utilize less polluting technology
 as compared to local firms in low-income countries. Thus, FDI does not
 necessarily increase pollution levels in the host countries. The findings,
 therefore, simultaneously support the pollution haven and the pollution
 halo hypotheses. 
Journal: Applied Economics 
Pages: 2597-2606 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566187 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566187 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2597-2606




Template-Type: ReDIF-Article 1.0
Author-Name: Jorge   E. Ara&#xF1;a 
Author-X-Name-First: Jorge   E. 
Author-X-Name-Last: Ara&#xF1;a 
Author-Name: Carmelo   J. Le&#xF3;n 
Author-X-Name-First: Carmelo   J. 
Author-X-Name-Last: Le&#xF3;n 
Title: Scale-perception bias in the valuation of environmental risks 
Abstract:
  The valuation of environmental risks is commonly approached with the
 utilization of stated preference methods such as contingent valuation. In
 these methods, money is utilized as the scale that reflects the
 individual's underlying utility function. However, this scale can vary
 across individuals due to different perceptions on what are the right or
 appropriate bounds for Willingness To Pay (WTP). In this article, we test
 for scale-perception bias and propose a correction method based on the
 utilization of anchoring vignettes that define different degrees of
 preference for the nonmarket good. The proposed method is applied to study
 the commonly found anomaly &#x2018;probability neglect&#x2019;, which is
 defined by the insensitivity to the probability levels in the valuation of
 environmental risks. The results show that probability neglect disappears
 when WTP responses are corrected for self-perception bias through the
 utilization of the anchoring vignettes approach. 
Journal: Applied Economics 
Pages: 2607-2617 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566188 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566188 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2607-2617




Template-Type: ReDIF-Article 1.0
Author-Name: Ye&#x15F;im Ku&#x15F;tepeli 
Author-X-Name-First: Ye&#x15F;im 
Author-X-Name-Last: Ku&#x15F;tepeli 
Author-Name: Yaprak G&#xFC;lcan 
Author-X-Name-First: Yaprak 
Author-X-Name-Last: G&#xFC;lcan 
Author-Name: Sedef Akg&#xFC;ng&#xF6;r 
Author-X-Name-First: Sedef 
Author-X-Name-Last: Akg&#xFC;ng&#xF6;r 
Title: Transportation infrastructure investment, growth and international trade in Turkey 
Abstract:
  Investment in transportation infrastructure facilitate the movement of
 the goods; leading to higher standards of living for the people of the
 whole globe. Although infrastructure is indispensable to achieve the main
 development targets in developing countries, such as urbanization,
 industrialization and sustainable economic development (Kim, 2006), the
 relationship between infrastructure expenditures, economic growth and
 international trade is inconclusive. The aim of this study is to
 investigate the effect of investment on highway infrastructure on
 international trade and economic growth in Turkey for the period of 1970
 to 2005. The empirical results from causality and cointegration analysis
 suggest only a very weak short run effect of share of exports in Gross
 National Product (GNP) on highway transportation expenditures but no long
 run relationships between highway infrastructure expenditures, economic
 growth and international trade in Turkey. 
Journal: Applied Economics 
Pages: 2619-2629 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566189 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566189 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2619-2629




Template-Type: ReDIF-Article 1.0
Author-Name: M.   Ali Choudhary 
Author-X-Name-First: M.   Ali 
Author-X-Name-Last: Choudhary 
Author-Name: Adnan Haider 
Author-X-Name-First: Adnan 
Author-X-Name-Last: Haider 
Title: Neural network models for inflation forecasting: an appraisal 
Abstract:
  We assess the power of diverse Artificial Neural-Network (ANN) models as
 forecasting tools for monthly inflation rates for 28 Organization for
 Economic Co-operation and Development (OECD) countries. In the context of
 short out-of-sample forecasting horizon we find that, on average, the ANN
 models were a superior predictor for inflation for 45% while the
 Autoregressive model of order one (AR1) model performed better for 23% of
 the countries. Furthermore, we develop arithmetic combinations of several
 ANN models and find that these may also serve as credible tools for
 forecasting inflation. 
Journal: Applied Economics 
Pages: 2631-2635 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566190 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566190 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2631-2635




Template-Type: ReDIF-Article 1.0
Author-Name: J&#xFC;rgen Antony 
Author-X-Name-First: J&#xFC;rgen 
Author-X-Name-Last: Antony 
Author-Name: Thomas Grebel 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Grebel 
Title: Technology flows between sectors and their impact on large-scale firms 
Abstract:
  In this article we highlight the importance of technology flows between
 sectors and their impact on the labour productivity of large-scale
 corporations. Based on theoretical considerations, we explore
 technological spillovers between the sectors of an economy. Large-scale
 corporations usually focus on certain sectors but make use of a wide range
 of technological knowledge from other sectors. Thereby, technological
 knowledge built up in sectors by continuous R&D activities does not spill
 over without bounds but is directed by firms&#x2019; absorptive
 capacities. We use firms&#x2019; patent portfolio to empirically calculate
 the sector affiliation and therewith the firms&#x2019; absorptive
 capacities in order to estimate the impact of technology diffusion on
 labour productivity. Fortune 500 firms serve as data base. 
Journal: Applied Economics 
Pages: 2637-2651 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566191 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566191 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2637-2651




Template-Type: ReDIF-Article 1.0
Author-Name: Nick Drydakis 
Author-X-Name-First: Nick 
Author-X-Name-Last: Drydakis 
Title: Sexual orientation and labour relations: new evidence from Athens, Greece 
Abstract:
  We use data from the 2008--2009 Athens Area Study (AAS) to provide the
 first evidence on the relationship between men's sexual orientation and
 wages in the Greek capital, Athens. Gay and bisexual men are found to
 receive significantly lower monthly wages than heterosexual male workers
 after accounting for demographic and occupational characteristics. The
 estimations reveal that educated gay and bisexual workers face lower wage
 differentials than less-educated gay and bisexual workers, which is
 consistent with the statistical theory of discrimination. However, wage
 gaps are significant at all educational attainment levels, suggesting that
 these workers face strong prejudices in the Athenian labour market. The
 same pattern holds also across all occupations and sectors. Furthermore,
 to better understand the determinants of the wage gaps, we compare
 gay/bisexual men with both married and unmarried heterosexual men. By
 making these comparisons, we are able to disentangle the penalty
 associated with being unmarried from other human-capital explanations for
 the wage gap. 
Journal: Applied Economics 
Pages: 2653-2665 
Issue: 20 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566194 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566194 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:20:p:2653-2665




Template-Type: ReDIF-Article 1.0
Author-Name: Oluyemisi Kuku 
Author-X-Name-First: Oluyemisi 
Author-X-Name-Last: Kuku 
Author-Name: Steven Garasky 
Author-X-Name-First: Steven 
Author-X-Name-Last: Garasky 
Author-Name: Craig Gundersen 
Author-X-Name-First: Craig 
Author-X-Name-Last: Gundersen 
Title: The relationship between childhood obesity and food insecurity: a nonparametric analysis 
Abstract:
  Childhood obesity and food insecurity are major public health concerns in
 the United States and other developed countries. Research on the
 relationship between the two has provided mixed results across a variety
 of data sets and empirical methods. Common throughout this research,
 however, is the use of parametric frameworks for empirical analyses. This
 study moves beyond parametric methods by examining the relationship
 between childhood obesity and food insecurity among low-income children
 with nonparametric regression techniques. We examine data from the Child
 Development Supplement (CDS) of the Panel Study of Income Dynamics (PSID),
 a nationally representative data set from the US. Consistent with recent
 work, our parametric analyses indicate that there is no statistically
 significant relationship between childhood obesity and food insecurity. In
 contrast, our nonparametric results indicate that the probability of being
 obese varies markedly with the level of food insecurity being experienced
 by the child. Moreover, this relationship differs across relevant
 subgroups including those defined by gender, race/ethnicity and income.
 Fully understanding the relationship between childhood obesity and food
 insecurity has significant policy implications. 
Journal: Applied Economics 
Pages: 2667-2677 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566192 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566192 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2667-2677




Template-Type: ReDIF-Article 1.0
Author-Name: Kishor Sharma 
Author-X-Name-First: Kishor 
Author-X-Name-Last: Sharma 
Author-Name: Pemasiri   J. Gunawardana 
Author-X-Name-First: Pemasiri   J. 
Author-X-Name-Last: Gunawardana 
Title: The role of price and nonprice factors in predicting Australia's trade performance 
Abstract:
  This article investigates the role of price and nonprice factors in
 predicting Australia's trade performance. Results broadly suggest that
 Australia's trade performance is largely explained by the nonprice factors
 namely, R&D, reliability of domestic supply, aggregate world demand and
 Foreign Direct Investment (FDI) flows in long run. Price factors such as,
 relative price of Australian exports and domestic prices are also
 important predictors of trade competitiveness. The policy implications of
 these findings are that there are dividends in terms of improved trade
 performance by encouraging R&D expenditure, attracting FDI, improving
 domestic supply and implementing appropriate policies to improve price
 competitiveness. 
Journal: Applied Economics 
Pages: 2679-2686 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566193 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566193 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2679-2686




Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨀠 Bel鮠Lozano 
Author-X-Name-First: Mar𨀠 Bel鮠
Author-X-Name-Last: Lozano 
Title: Analysing the effect of excess cash accumulation on financial decisions 
Abstract:
  In this current moment of crisis it is very important for firms to hold a
 suitable amount of cash. But it is also very important to analyse how this
 amount of cash affects firm value. Here an in-depth study is made of the
 determination of firm value centring our attention on the problem of
 excess cash accumulation. This article adds important value to the
 existing literature since, employing the panel data methodology in the
 sample of Spanish nonfinancial firms, it identifies whether excess cash
 holding affects firm value in general, and investment, financing and
 dividend decisions in particular. The results show how asymmetric
 information among the economic agents of the firm affects the cash
 reserves. In particular, shareholders could penalize the investment made
 by these firms and consider the positive effect that the debt in
 particular and the dividend policies exert on the firm. Moreover, the
 results reveal the importance of financial flexibility as opposed to the
 arguments provided by agency theory. 
Journal: Applied Economics 
Pages: 2687-2698 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566195 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566195 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2687-2698




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobo Wu 
Author-X-Name-First: Xiaobo 
Author-X-Name-Last: Wu 
Author-Name: Yanbin Jiang 
Author-X-Name-First: Yanbin 
Author-X-Name-Last: Jiang 
Title: Sectoral role change in transition China: a network analysis from 1990 to 2005 
Abstract:
  In this article, by using the data collected from input--output table, we
 conduct a detailed investigation on the evolution pattern during economy
 development of China from 1990 to 2005. By using network analysis at
 national, cluster and individual level, we find some interesting insights,
 also in order to identify the difference between cluster levels, we
 proposed a cluster centralization method to analyse the role of the
 cluster in the network. This study shows that during the transition
 process of China, there exist some similarity and differences in each
 selected time. Each period studied have some similar distributions of key
 sectors, including the cores, i.e. chemical industry, nonmetallic mineral
 products, construction, business. However, significant differences also
 exists, for example, the 2005 system is characterized as higher degrees of
 systemic connection and hierarchy, while the 1990s system has looser
 density and less centralization. Additionally, the high tech clusters
 (i.e. electronics and instruments) including high tech industry (i.e.
 electronics and telecommunications equipment manufacturers) has played a
 much more important role in 2005 than that in early 1990s. Also the high
 tech cluster and service cluster have contributed a lot to the transition
 and development of the whole country, the results also confirm that some
 theory concluded from developed country can also applied to developing
 economies such as China. 
Journal: Applied Economics 
Pages: 2699-2715 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566196 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566196 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2699-2715




Template-Type: ReDIF-Article 1.0
Author-Name: Hong-wei Zhang 
Author-X-Name-First: Hong-wei 
Author-X-Name-Last: Zhang 
Author-Name: Wei-guo Chen 
Author-X-Name-First: Wei-guo 
Author-X-Name-Last: Chen 
Author-Name: Jie Zhang 
Author-X-Name-First: Jie 
Author-X-Name-Last: Zhang 
Title: Urban--rural income disparities and development in a panel data set of China for the period from 1978 to 2006 
Abstract:
  We examine the relationship between urban--rural income disparities and
 development in a panel data set of 30 provinces and regional subsets of
 China during the period of 1978 to 2006. There is an inverted-U
 relationship between the urban--rural income gap and per capita Gross
 Domestic Product (GDP). Financial development by scale widens the
 urban--rural income gap in all regional samples, while financial sector
 efficiency and rural bank loans may reduce it in some regions. Government
 spending raises the urban--rural income gap as well. We also examine the
 effects of urbanization, openness and education. 
Journal: Applied Economics 
Pages: 2717-2728 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566197 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566197 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2717-2728




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel   Yau Man Ze-To 
Author-X-Name-First: Samuel   Yau Man 
Author-X-Name-Last: Ze-To 
Title: Estimating value-at-risk under a Heath--Jarrow--Morton framework with jump 
Abstract:
  This article proposes a new methodology for measuring Value-at-Risk
 (hereafter VaR) using a model that incorporates both volatility and jumps.
 Heath--Jarrow--Morton (HJM) model has been used for the valuation of
 interest rate derivatives. This study extends the use of HJM model to the
 estimation VaR. This article specifically uses a two-factor HJM
 jump-diffusion model for the computation. The study models the Eurodollar
 futures prices using its derivatives. In addition, this article uses a new
 volatility specification of Ze-To (2002) to construct the HJM dynamics.
 The result indicates that the VaR model using HJM jump-diffusion framework
 performs well in capturing the nonnormality and in providing accurate VaR
 forecasts in the in-sample and out-sample tests. 
Journal: Applied Economics 
Pages: 2729-2741 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566198 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566198 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2729-2741




Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer 
Author-X-Name-First: Engelbert 
Author-X-Name-Last: Stockhammer 
Author-Name: Simon Sturn 
Author-X-Name-First: Simon 
Author-X-Name-Last: Sturn 
Title: The impact of monetary policy on unemployment hysteresis 
Abstract:
  This article investigates the hypothesis that the extent to which
 hysteresis occurs in the aftermath of recessions depends on monetary
 policy reactions. The degree of hysteresis is explained econometrically by
 the extent of monetary easing during a recession and by standard variables
 for labour market institutions in a pooled cross country analysis using
 quarterly data. The sample includes 40 recessions in 19 Organization for
 Economic Co-operation and Development (OECD) countries for which the
 required data is available. The time period lasts for the period from 1980
 to 2007. This article builds on Ball (1999) and extends the sample of
 countries, the time period under investigation and the set of control
 variables. 
Journal: Applied Economics 
Pages: 2743-2756 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566199 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566199 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2743-2756




Template-Type: ReDIF-Article 1.0
Author-Name: Jan   Christoph Ruelke 
Author-X-Name-First: Jan   Christoph 
Author-X-Name-Last: Ruelke 
Author-Name: Christian Pierdzioch 
Author-X-Name-First: Christian 
Author-X-Name-Last: Pierdzioch 
Author-Name: Georg Stadtmann 
Author-X-Name-First: Georg 
Author-X-Name-Last: Stadtmann 
Title: On the internal consistency of short-term, medium-term and long-term oil price forecasts 
Abstract:
  We derive internal consistency restrictions on short-, medium- and
 long-term oil price forecasts. We then analyse whether oil price forecasts
 extracted from the Survey of Professional Forecasters (SPF) conducted by
 the European Central Bank (ECB) satisfy these internal consistency
 restrictions. We find that neither short-term forecasts are consistent
 with medium-term forecasts nor that medium-term forecasts are consistent
 with long-term forecasts. Using a more complex expectation formation
 structure featuring a distributed lag structure, however, we find stronger
 evidence of internal consistency of medium-term forecasts with long-term
 forecasts. 
Journal: Applied Economics 
Pages: 2757-2765 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566201 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566201 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2757-2765




Template-Type: ReDIF-Article 1.0
Author-Name: M. Piracha 
Author-X-Name-First: M. 
Author-X-Name-Last: Piracha 
Author-Name: Y. Zhu 
Author-X-Name-First: Y. 
Author-X-Name-Last: Zhu 
Title: Precautionary savings by natives and immigrants in Germany 
Abstract:
  This article analyses the savings behaviour of natives and immigrants in
 Germany. It is argued that uncertainty about future income and legal
 status (in case of immigrants) is a key component in the determination of
 the level of precautionary savings. Using the German dataset, we exploit a
 natural experiment arising from a change in the nationality law in Germany
 to estimate the importance of precautionary savings. Using a
 Difference-in-Differences (DiD) approach, we find a significant reduction
 in savings and remittances for immigrants after the easing of citizenship
 requirements, compared to the pre-reform period. Our parametric
 specification shows that introduction of the new nationality law reduces
 the gap in marginal propensity to save between natives and immigrants by
 up to 80%. These findings suggest that many of the differences in terms of
 the savings behaviour between natives and immigrants are driven by the
 savings arising from the uncertainties about future income and legal
 status rather than cultural differences. 
Journal: Applied Economics 
Pages: 2767-2776 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566202 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566202 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2767-2776




Template-Type: ReDIF-Article 1.0
Author-Name: David   E. Bloom 
Author-X-Name-First: David   E. 
Author-X-Name-Last: Bloom 
Author-Name: David Canning 
Author-X-Name-First: David 
Author-X-Name-Last: Canning 
Author-Name: Erica   S. Shenoy 
Author-X-Name-First: Erica   S. 
Author-X-Name-Last: Shenoy 
Title: The effect of vaccination on children's physical and cognitive development in the Philippines 
Abstract:
  We use data from the Cebu Longitudinal Health and Nutrition Survey
 (CLHNS) in the Philippines to link vaccination in the first 2 years of
 life with later physical and cognitive development in children. We use
 propensity score matching to estimate the causal effect of vaccination on
 child development. We find no effect of vaccination on later height or
 weight, but full childhood vaccination for measles, polio, Tuberculosis
 (TB), Diphtheria, Pertussis and Tetanus (DPT) significantly increases
 cognitive test scores relative to matched children who received no
 vaccinations. The size of the effect is large, raising test scores, on
 average, by about half an SD. 
Journal: Applied Economics 
Pages: 2777-2783 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566203 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2777-2783




Template-Type: ReDIF-Article 1.0
Author-Name: Themis Kokolakakis 
Author-X-Name-First: Themis 
Author-X-Name-Last: Kokolakakis 
Author-Name: Fernando Lera-L&#xF3;pez 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Lera-L&#xF3;pez 
Author-Name: Thanos Panagouleas 
Author-X-Name-First: Thanos 
Author-X-Name-Last: Panagouleas 
Title: Analysis of the determinants of sports participation in Spain and England 
Abstract:
  This article investigates the role of sociodemographic characteristics,
 educational and economic variables on sports participation in a
 comparative way in two European countries: Spain and England. Adopting a
 broad concept of sport, as in the common European approach, we analyse the
 determinants of sports participation in 40 different professional and
 nonprofessional sports and recreational activities in both countries. The
 research involves a comparative analysis between the data of England and
 Spain based on two logistic regressions. The regression equation of every
 country tests the effect of 17 binary explanatory variables on a dependent
 binary variable for participation. Higher education level, professional
 occupation, younger age and being male are all factors associated with
 more sports participation. Although there is no difference in the
 direction of the factor effects on participation between England and
 Spain, there is considerable variation in their relative strength, which
 has sport policy implications in the two nations. 
Journal: Applied Economics 
Pages: 2785-2798 
Issue: 21 
Volume: 44 
Year: 2012 
Month: 7 
X-DOI: 10.1080/00036846.2011.566204 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566204 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:21:p:2785-2798




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Drakos 
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Drakos 
Title: Extent and intensity of investment with multiple capital goods 
Abstract:
  Overall investment is the product of the number of capital goods for
 which triggering has occurred (the extensive or reductive margin) and the
 depth of investment per capital good (intensive margin). Based on a
 longitudinal plant-level data and using dynamic panel techniques we
 investigated the validity of the hypothesis that the intensity of
 investment increases as its extent increases. Our results indicate a
 strong linkage between the extent and intensity of investment decisions,
 finding which holds both for positive and negative investment decisions.
 This linkage suggests that the decision on how many capital types to
 initiate investment is closely connected to the decision regarding the
 depth of investment expenditures. Moreover, the intensity--extent
 derivative remains positive but its magnitude decreases with plant size,
 providing indirect evidence for higher complementarity between capital
 types for smaller plants. 
Journal: Applied Economics 
Pages: 2799-2810 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.566205 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2799-2810




Template-Type: ReDIF-Article 1.0
Author-Name: J. Jarl 
Author-X-Name-First: J. 
Author-X-Name-Last: Jarl 
Author-Name: U.-G. Gerdtham 
Author-X-Name-First: U.-G. 
Author-X-Name-Last: Gerdtham 
Title: Does drinking affect long-term sickness absence? A sample selection approach correcting for employment and accounting for drinking history 
Abstract:
  This article studies the effect of alcohol consumption on the probability
 of long-term sickness-related absenteeism for women. Using Swedish matched
 survey and register data, we apply sample selection models to correct for
 nonrandom sampling into paid employment. There are three main findings of
 the study. First, diverging from the most prevalent consumption group
 (long-term light drinkers) is associated with an increased probability of
 long-term sickness, ranging from 10% for long-term heavy drinkers to 18%
 for former drinkers. Second, controlling for former consumption errors
 (especially former drinker and former abstainer errors) and sample
 selection into employment are important for unbiased, consistent
 estimations. Third, by predicting the effect of changes in consumption on
 long-term sickness-related absence, we find that alcohol only explains a
 small part of the overall picture of long-term sickness-related
 absenteeism. Notwithstanding this fact, long-term sickness-related
 absenteeism due to alcohol adds up to substantial productivity loss for
 society. Our conclusion is that the commonly found U-shaped relationship
 between current alcohol consumption and labour market outcomes remains for
 women, after controlling for past consumption and selection effects. A
 change in consumption level increases probability of long-term
 sickness-related absence, compared to individuals with constant
 consumption levels. 
Journal: Applied Economics 
Pages: 2811-2825 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.566206 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566206 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2811-2825




Template-Type: ReDIF-Article 1.0
Author-Name: Chiang Chun-Hao 
Author-X-Name-First: Chiang 
Author-X-Name-Last: Chun-Hao 
Author-Name: Yang Jian-Min 
Author-X-Name-First: Yang 
Author-X-Name-Last: Jian-Min 
Title: A bibliometric study of financial risk literature: a historic approach 
Abstract:
  This study probes into the development of financial risk literatures
 through the perspective of bibliometrics. The research samples were
 collected from the relevant international financial business bibliographic
 databases. A total of 2727 entries in a span of 29 years from 1970 to 2009
 were collected and the results are summarized as follows: (1) the
 financial risk literatures under influence of the financial turmoil in
 Asia achieved substantial growth from 1997 to 1998 and an exponential
 growth curve during the global financial turmoil from 2007 to 2009; (2)
 the literatures were mainly journals and articles written in English; (3)
 the United States ranked first in sector productivity; (4) the author
 productivity of the financial risks was consistent with the Lotka's Law
 and (5) the document types of the financial risk literatures were mostly
 dissertation papers on economics and business. 
Journal: Applied Economics 
Pages: 2827-2839 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.566208 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566208 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2827-2839




Template-Type: ReDIF-Article 1.0
Author-Name: Ya Wu 
Author-X-Name-First: Ya 
Author-X-Name-Last: Wu 
Author-Name: Cesar   L. Escalante 
Author-X-Name-First: Cesar   L. 
Author-X-Name-Last: Escalante 
Author-Name: Lewell   F. Gunter 
Author-X-Name-First: Lewell   F. 
Author-X-Name-Last: Gunter 
Author-Name: James   E. Epperson 
Author-X-Name-First: James   E. 
Author-X-Name-Last: Epperson 
Title: A decomposition approach to analysing racial and gender biases in Farm Service Agency's lending decisions 
Abstract:
  This study provides a different perspective in revisiting the racial and
 gender discrimination issue at the Farm Service Agency (FSA). Employing
 the Oaxaca--Blinder decomposition method, this study analyses disparities
 in approved loan amounts among racial and gender classes of borrowers.
 This study's results indicate substantial differentials in approved loan
 amount gaps between racial and gender classes, favouring white and female
 borrowers, respectively. Further scrutiny of the borrowers&#x2019;
 comparative financial conditions presented to FSA to support their loan
 applications, however, indicate that these borrower groups significantly
 dominate their peers in a number of measures that indicate their financial
 strengths and relatively greater capability to repay their future lending
 obligations. Hence, this study's results can hardly be construed as
 evidence of biased lending decisions as these borrower groups should
 rightfully be offered more favourable loan terms, such as larger loan
 amounts, by the FSA. 
Journal: Applied Economics 
Pages: 2841-2850 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.566210 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566210 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2841-2850




Template-Type: ReDIF-Article 1.0
Author-Name: Philip   Hans Franses 
Author-X-Name-First: Philip   Hans 
Author-X-Name-Last: Franses 
Author-Name: Stephanie Vermeer 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: Vermeer 
Title: Inequality amongst the wealthiest and its link with economic growth 
Abstract:
  In this article, we correlate the key features of the distribution of
 wealth of the 500 wealthiest individuals in the Netherlands with economic
 growth and stock market returns for the period 1998 to 2009. We show that
 each year the distribution obeys a power law and that the key parameter
 measures the degree of inequality. Our main finding is that more
 inequality amongst the wealthiest is associated with higher economic
 growth. 
Journal: Applied Economics 
Pages: 2851-2858 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.566211 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566211 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2851-2858




Template-Type: ReDIF-Article 1.0
Author-Name: Rigoberto   A. Lopez 
Author-X-Name-First: Rigoberto   A. 
Author-X-Name-Last: Lopez 
Author-Name: Kristen   L. Fantuzzi 
Author-X-Name-First: Kristen   L. 
Author-X-Name-Last: Fantuzzi 
Title: Demand for carbonated soft drinks: implications for obesity policy 
Abstract:
  This article examines consumer choices of Carbonated Soft Drinks (CSDs)
 and their implications for obesity policy. Demand in relation to product
 and consumer heterogeneity is estimated via a random coefficients logit
 model (Berry <italic>et&#xA0;al</italic>., 1995) applied to quarterly
 scanner data for 26 brands in 20 US cities, involving 40&#x2009;000
 consumers. Counterfactual experiments show that caloric taxes could be
 effective in decreasing caloric CSD consumption though having little
 impact on obesity incidence. 
Journal: Applied Economics 
Pages: 2859-2865 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568397 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568397 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2859-2865




Template-Type: ReDIF-Article 1.0
Author-Name: Elisabetta Ottoz 
Author-X-Name-First: Elisabetta 
Author-X-Name-Last: Ottoz 
Author-Name: Marina Di Giacomo 
Author-X-Name-First: Marina 
Author-X-Name-Last: Di Giacomo 
Title: Diversification strategies and scope economies: evidence from a sample of Italian regional bus transport providers 
Abstract:
  A growing number of Local Public Transport (LPT) companies diversify
 their production lines by providing a large set of services. We
 investigate the cost structure of a sample of LPT companies operating in
 Italy and assess the presence and the magnitude of scope economies. We
 split the whole sample of firms according to their diversification
 strategy: private firms, mainly diversifying in competitive transport
 related services and public firms providing nontransport services in
 regulated markets. Scope economies appear sizeable for both groups but
 higher for firms pursuing a transport related strategy, suggesting caution
 in the multiutility development pursued by public LPT firms in Italy. 
Journal: Applied Economics 
Pages: 2867-2880 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568399 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568399 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2867-2880




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Alichi 
Author-X-Name-First: Ali 
Author-X-Name-Last: Alichi 
Author-Name: Rabah Arezki 
Author-X-Name-First: Rabah 
Author-X-Name-Last: Arezki 
Title: An alternative explanation for the resource curse: the income effect channel 
Abstract:
  This article provides an alternative explanation for the &#x2018;resource
 curse&#x2019; based on the income effect resulting from high government
 current spending in resource rich economies. Using a simple life cycle
 framework, we show that private investment in the nonresource sector is
 adversely affected if private agents expect extra government current
 spending financed through resource sector revenues in the future. This
 income channel of the resource curse is stronger for countries with lower
 degrees of openness and forward altruism. We empirically validate these
 findings by estimating nonhydrocarbon sector growth regressions using a
 panel of 25 oil-exporting countries over the period 1992 to 2005. 
Journal: Applied Economics 
Pages: 2881-2894 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568400 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568400 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2881-2894




Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Clemente 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Clemente 
Author-Name: Carmen Marcuello 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Marcuello 
Author-Name: Antonio Monta&#xF1;es 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Monta&#xF1;es 
Title: Government Social Spending and GDP: has there been a change in social policy? 
Abstract:
  Government Social Spending (GSS) is made up of a very heterogeneous range
 of variables, monetary transfers for retirement or illness, unemployment
 benefits, family services, active labour market policies and health
 expenditure. We believe that each of these components is of enormous
 importance to the economic development of a country. As has often been
 affirmed, however, GSS is one of the economic aggregates most sensitive to
 the ups and downs of economic growth. In moments of crisis, sharp cuts are
 almost immediate, and these may or may not be recovered when times are
 good. In this article, we examine the sensitivity of GSS to the evolution
 of Gross Domestic Product (GDP) in order to reveal the relationship
 between the two. 
Journal: Applied Economics 
Pages: 2895-2905 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568401 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568401 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2895-2905




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Haan 
Author-X-Name-First: Peter 
Author-X-Name-Last: Haan 
Author-Name: Micha&#x142; Myck 
Author-X-Name-First: Micha&#x142; 
Author-X-Name-Last: Myck 
Title: Multi-family households in a labour supply model: a calibration method with application to Poland 
Abstract:
  Models of cooperative and noncooperative behaviour opened the household
 &#x2018;black box&#x2019; and allowed for individual treatment of partners
 in couples. However, labour supply literature has so far largely ignored a
 broader issue -- the distinction of single versus multi-family
 (&#x2018;complex&#x2019;) households. We propose a method to account for
 multi-family household structure by borrowing from recent applications of
 the collective model to identify the degree of sharing. We assume that
 each household is characterized by a between-family sharing parameter,
 which is calibrated on estimated preferences, observed labour market
 status and other characteristics. We apply the method to Polish labour
 market data. 
Journal: Applied Economics 
Pages: 2907-2919 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568402 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568402 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2907-2919




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad   Zubaidi Baharumshah 
Author-X-Name-First: Ahmad   Zubaidi 
Author-X-Name-Last: Baharumshah 
Author-Name: Siew-Voon Soon 
Author-X-Name-First: Siew-Voon 
Author-X-Name-Last: Soon 
Title: Mean reversion in bilateral real exchange rates: evidence from the Malaysian ringgit 
Abstract:
  This study examines behaviour of the Consumer Price Index (CPI)-based
 Real Exchange Rates (RERs) of the ringgit against the currencies of
 Malaysia's major trading partners. The empirical results, which are
 derived from newly developed tests advocated by Lee and Strazicich (LS,
 2003) and Narayan and Popp (NP, 2010) that allow for two breaks in the
 series, provide conflicting results. We obtain weaker support for
 Purchasing Power Parity (PPP) using the Narayan and Popp (2010) test. By
 truncating the sampling period into two sub-periods, we find that PPP
 holds for majority of the Malaysia's bilateral exchange rate
 <italic>vis-&#xE0;-vis</italic> its major trading partners during the
 pre-crisis period. The 1997 currency crisis, however, has weakened the
 evidence in favour of PPP hypothesis in the strict sense. 
Journal: Applied Economics 
Pages: 2921-2933 
Issue: 22 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568406 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568406 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:22:p:2921-2933




Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Roca 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Roca 
Author-Name: Gurudeo   Anand Tularam 
Author-X-Name-First: Gurudeo   Anand 
Author-X-Name-Last: Tularam 
Title: Which way does water flow? An econometric analysis of the global price integration of water stocks 
Abstract:
  Around US$600 billion of investment is desperately needed to address
 forecasted huge shortages in water supply globally. A number of worldwide
 investors -- so-called water funds -- have started to take up this
 challenge. For these global water investors, knowledge about the extent of
 integration between the water sectors of financial markets is highly
 important. According to international portfolio diversification theory,
 the less (more) integrated markets are, the more (less) benefits there are
 from international diversification. In this study, we investigate the
 extent and manner of interdependence among the US, European and Asian
 water sector of the equity markets based on Vector Autoregression (VAR),
 Granger causality and impulse response analyses. We find that world water
 stock market prices are indeed significantly interdependent although this
 interdependence varies across time periods. Each market quickly responds
 to shocks from each other and completes its response within 3 days. Hence,
 for water investors, international diversification that is undertaken just
 within the water sector will not be beneficial. The result also implies
 that there is the risk of crossmarket contagion -- that is, price
 volatility spill over across water sectors of different financial markets,
 and therefore, water authorities in one market should take cognisance of
 events in other markets. 
Journal: Applied Economics 
Pages: 2935-2944 
Issue: 23 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568403 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568403 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:23:p:2935-2944




Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar 
Author-X-Name-First: Saten 
Author-X-Name-Last: Kumar 
Author-Name: Don   J. Webber 
Author-X-Name-First: Don   J. 
Author-X-Name-Last: Webber 
Author-Name: Geoff Perry 
Author-X-Name-First: Geoff 
Author-X-Name-Last: Perry 
Title: Real wages, inflation and labour productivity in Australia 
Abstract:
  This article presents an analysis of real wages, inflation and labour
 productivity interrelationships using cointegration, Granger causality
 and, most importantly, structural change tests. Applications of tests to
 Australian data over the 1965 to 2007 period corroborate the presence of a
 structural break in 1985 and show that a 1% increase in manufacturing
 sector real wages led to an increase in manufacturing sector productivity
 of between 0.5% and 0.8%. Comparable estimates for the effect of inflation
 on manufacturing sector productivity have limited statistical
 significance. Granger causality test results suggest that real wages and
 inflation both Granger cause productivity in the long run. 
Journal: Applied Economics 
Pages: 2945-2954 
Issue: 23 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568405 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568405 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:23:p:2945-2954




Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Iacone 
Author-X-Name-First: Fabrizio 
Author-X-Name-Last: Iacone 
Author-Name: Steve Martin 
Author-X-Name-First: Steve 
Author-X-Name-Last: Martin 
Author-Name: Luigi Siciliani 
Author-X-Name-First: Luigi 
Author-X-Name-Last: Siciliani 
Author-Name: Peter   C. Smith 
Author-X-Name-First: Peter   C. 
Author-X-Name-Last: Smith 
Title: Modelling the dynamics of a public health care system: evidence from time-series data 
Abstract:
  The English National Health Service (NHS) was established in 1948, and
 has therefore yielded some long time series data on health system
 performance. Waiting time for inpatient care have been a persistent policy
 concern since the creation of the NHS. After developing a simple
 theoretical framework of the dynamic interaction between key indicators of
 health system performance, we investigate empirically the relationship
 between hospital activity, waiting time and population characteristics
 using aggregate time-series data for the NHS over the period 1952 to 2003.
 Structural Vector Autoregression (S-VAR) suggests that in the long run:
 higher activity is associated with lower waiting times
 (elasticity&#x2009;=&#x2009;&#x2212;0.9); an increase in the elderly
 population is associated with higher waiting time
 (elasticity&#x2009;=&#x2009;1.3). In the short run, higher lagged waiting
 time leads to higher activity (elasticity&#x2009;=&#x2009;0.12). We also
 find that shocks in waiting times are countered by higher activity, so the
 effect is only temporary. 
Journal: Applied Economics 
Pages: 2955-2968 
Issue: 23 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568407 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568407 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:23:p:2955-2968




Template-Type: ReDIF-Article 1.0
Author-Name: Mir   M. Ali 
Author-X-Name-First: Mir   M. 
Author-X-Name-Last: Ali 
Author-Name: Aliaksandr Amialchuk 
Author-X-Name-First: Aliaksandr 
Author-X-Name-Last: Amialchuk 
Author-Name: Song Gao 
Author-X-Name-First: Song 
Author-X-Name-Last: Gao 
Author-Name: Frank Heiland 
Author-X-Name-First: Frank 
Author-X-Name-Last: Heiland 
Title: Adolescent weight gain and social networks: is there a contagion effect? 
Abstract:
  Previous studies on the spread of obesity in social networks have focused
 on the contemporaneous effect of peer weight outcomes on individuals. This
 article is the first to investigate the longer term effects, within
 adolescence and from adolescence into early adulthood, of peers on
 individual weight outcomes. Using data from the first three waves of the
 National Longitudinal Study of Adolescent Health (Add Health), and
 accounting for correlated effects using a number of empirical strategies
 including school-level fixed effects and accounting for neighbourhood
 preferences, we show that Body Mass Index (BMI) and overweight status in a
 person's friendship network influence their BMI and likelihood of being
 overweight. The evidence suggests that there is some persistence of the
 effects of past peer weight experiences on individual weight outcomes
 during adolescence and into early adulthood. The findings are consistent
 with adolescence being an important formative period of
 individuals&#x2019; preference for ideal physique and own body weight
 aspirations. We conclude that policy makers should be particularly
 concerned with interventions during childhood and adolescence, in order to
 slow the spread of obesity by promoting a healthy body image and positive
 health behaviours. 
Journal: Applied Economics 
Pages: 2969-2983 
Issue: 23 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568408 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568408 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:23:p:2969-2983




Template-Type: ReDIF-Article 1.0
Author-Name: Eddie   Chi-man Hui 
Author-X-Name-First: Eddie   Chi-man 
Author-X-Name-Last: Hui 
Author-Name: Xian Zheng 
Author-X-Name-First: Xian 
Author-X-Name-Last: Zheng 
Title: The dynamic correlation and volatility of real estate price and rental: an application of MSV model 
Abstract:
  This article investigates the dynamic conditional correlation between
 price and rental among four types of real estate markets, namely housing,
 retail, office and factory. In the case of Hong Kong (from January 1993 to
 December 2008), the Dynamic Conditional Correlation Multivariate
 Stochastic Volatility (DCC--MSV) model and Bayesian Markov Chain Monte
 Carlo (MCMC) are employed to capture the volatility and time varying
 correlation of property price and rental in each market. The empirical
 results demonstrate that the volatilities of price are significantly
 larger than those of rental for each type of real estate markets
 throughout the whole sample period. Besides, the findings indicate that
 the correlations between price and rental are time-varying, and the
 average correlation in the housing market is much larger than those in the
 other three markets. Also, the conditional correlations in the factory
 market are the most volatile, while those in the office market are
 relatively stable. Additionally, two particularly volatile periods have
 been identified in and around 1997 and 2003. 
Journal: Applied Economics 
Pages: 2985-2995 
Issue: 23 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568409 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568409 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:23:p:2985-2995




Template-Type: ReDIF-Article 1.0
Author-Name: St鰨ane Mussard 
Author-X-Name-First: St鰨ane 
Author-X-Name-Last: Mussard 
Author-Name: Patrick Richard 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Richard 
Title: Linking Yitzhaki's and Dagum's Gini decompositions 
Abstract:
  In this article we show that the Gini coefficient is simultaneously
 decomposable both by sources of income and by populations of income
 receivers for nonoverlapping income distributions: the so-called
 first-best Gini multi-decomposition. We show that this multidimensional
 decomposition is useful for many reasons: (i) it is related to the degree
 of inequality aversion of the decision maker, (ii) it is especially well
 suited to study inequalities between poor and nonpoor people, (iii) it
 enables one to measure the impact of marginal tax reforms on within- and
 between-group inequalities, respectively. 
Journal: Applied Economics 
Pages: 2997-3010 
Issue: 23 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568410 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568410 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:23:p:2997-3010




Template-Type: ReDIF-Article 1.0
Author-Name: F鬩x Dom󹱵ez-Barrero 
Author-X-Name-First: F鬩x 
Author-X-Name-Last: Dom󹱵ez-Barrero 
Author-Name: Julio L&#xF3;pez-Laborda 
Author-X-Name-First: Julio 
Author-X-Name-Last: L&#xF3;pez-Laborda 
Title: Taxation and the portfolio structure of Spanish households 
Abstract:
  Using a sample of 5962 Spanish households from the Survey of Household
 Finances (EFF) undertaken by the Bank of Spain, this article describes the
 structure of their portfolio, and estimates both a Probit model and a
 Tobit model to test how taxation affects, respectively, the decision to
 invest in each asset and the relative importance of each asset within the
 household portfolio. The influence of taxation is measured using the
 average marginal personal income tax rate of the household. The
 estimations performed show that the marginal tax rate is significant and
 displays the sign expected to explain both the holding of tax favourable
 assets and their weight in the household portfolio. 
Journal: Applied Economics 
Pages: 3011-3027 
Issue: 23 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568411 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568411 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:23:p:3011-3027




Template-Type: ReDIF-Article 1.0
Author-Name: Diego Romero-&#xC1;vila 
Author-X-Name-First: Diego 
Author-X-Name-Last: Romero-&#xC1;vila 
Author-Name: Carlos Usabiaga 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Usabiaga 
Title: Disaggregate evidence on Spanish inflation persistence 
Abstract:
  This article investigates the degree of persistence of different
 inflation rates for the Spanish economy using the Consumer Price Index
 (CPI) for the aggregate as well as for the regions, provinces and eight
 groups of goods and services, in addition to the Producer Price Index
 (PPI) for the aggregate and 24 industrial sectors. For that purpose, we
 employ: (1) the unit-root tests with good size and power of Ng and Perron
 (2001) with the small-sample bias correction developed by Perron and Qu
 (2007); (2) the nonlinear Exponential Smooth Transition Autoregressive
 (ESTAR) unit-root test proposed by Kapetanios <italic>et&#xA0;al</italic>.
 (2003); (3) median-unbiased estimations of the persistence parameter and
 the respective confidence intervals through the grid-bootstrap method
 proposed by Hansen (1999) and (4) median-unbiased estimations of the
 half-life of a shock in addition to the associated confidence intervals
 through the method based on impulse-response functions proposed by
 Gospodinov (2004). The results from the application of these techniques
 indicate that most of the CPI-based inflation rate series clearly contain
 a unit root. As regards the results for the PPI-based inflation rate
 series, we have provided evidence that the aggregate series appears to
 contain a unit root, while at the industry level the inflation rate series
 are found to be nonlinear stationary in 13 sectors. On the basis of this
 robust evidence of high persistence in inflation, policymakers should pay
 more attention to any shock hitting inflation, since the effects are
 expected to be long-lasting, particularly for consumer prices. Along these
 lines, it is essential to implement correcting reforms with the aim of
 raising price adjustment flexibility if one wants to avoid having to
 intervene actively in the markets to reach the inflation target. 
Journal: Applied Economics 
Pages: 3029-3046 
Issue: 23 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.568412 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568412 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:23:p:3029-3046




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Buehn 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Buehn 
Author-Name: Mohammad   Reza Farzanegan 
Author-X-Name-First: Mohammad   Reza 
Author-X-Name-Last: Farzanegan 
Title: Smuggling around the world: evidence from a structural equation model 
Abstract:
  This article uses a Multiple Indicators Multiple Causes (MIMIC) model to
 analyse the determinants of smuggling. The analysis reveals that higher
 corruption and a lower rule of law encourage smuggling. Tariffs and trade
 restrictions are important push factors, while a higher Black Market
 Premium (BMP) discourages smugglers. Based on the MIMIC estimates, we
 calculate an index of smuggling which provides a ranking for 54 countries.
 We find that smuggling is rampant in Cameroon, Pakistan and Kenya while it
 is least prevalent in Switzerland, Finland and Sweden. 
Journal: Applied Economics 
Pages: 3047-3064 
Issue: 23 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.570715 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570715 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:23:p:3047-3064




Template-Type: ReDIF-Article 1.0
Author-Name: Jaba Ghonghadze 
Author-X-Name-First: Jaba 
Author-X-Name-Last: Ghonghadze 
Author-Name: Thomas Lux 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Lux 
Title: Modelling the dynamics of EU economic sentiment indicators: an interaction-based approach 
Abstract:
  This article estimates a simple univariate model of expectation or
 opinion formation in continuous time adapting a &#x2018;canonical&#x2019;
 stochastic model of collective opinion dynamics (Weidlich and Haag, 1983;
 Lux, 1995, 2009a). This framework is applied to a selected data set on
 survey-based expectations from the rich EU business and consumer survey
 database for 12 European countries. The model parameters are estimated
 through Maximum Likelihood (ML) and numerical solution of the transient
 probability density functions for the resulting stochastic process. The
 model's success is assessed with respect to its out-of-sample forecasting
 performance relative to univariate Time Series (TS) models of the
 Autoregressive Moving Average model,
 ARMA(<italic>p</italic>,&#x2009;<italic>q</italic>) and Autoregressive
 Fractionally Integrated Moving Average,
 ARFIMA(<italic>p</italic>,&#x2009;<italic>d</italic>,&#x2009;<italic>q</it
 alic>) varieties. These tests speak for a slight superiority of the
 canonical opinion dynamics model over the alternatives in the majority of
 cases. 
Journal: Applied Economics 
Pages: 3065-3088 
Issue: 24 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.570716 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570716 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:24:p:3065-3088




Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Feng Lee 
Author-X-Name-First: Cheng-Feng 
Author-X-Name-Last: Lee 
Author-Name: Ching-Chuan Tsong 
Author-X-Name-First: Ching-Chuan 
Author-X-Name-Last: Tsong 
Title: A revisit on real interest rate parity hypothesis -- simulation evidence from efficient unit root tests 
Abstract:
  A set of unit root tests are applied to test the existence of long-run
 real interest rate parity among the G-10 countries over the period 1971M1
 to 2007M2. Rather than trusting the asymptotic distributions, this article
 uses simulation techniques to establish the small sample distributions of
 these tests, conditional on the stationary and nonstationary processes.
 The empirical results indicate that the tests have stable finite-sample
 sizes and higher size-adjusted powers such that the two estimated
 processes can be distinguished from each other. Thus, for six of the nine
 countries, their series are more likely to come from the estimated
 Autoregressive (AR) stationary process than from the nonstationary
 process. Noticeably, the testing results are rather different from those
 using the asymptotic distributions, in which only three countries support
 the real interest rate parity. 
Journal: Applied Economics 
Pages: 3089-3099 
Issue: 24 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.570717 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570717 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:24:p:3089-3099




Template-Type: ReDIF-Article 1.0
Author-Name: Avi Herbon 
Author-X-Name-First: Avi 
Author-X-Name-Last: Herbon 
Author-Name: Uriel Spiegel 
Author-X-Name-First: Uriel 
Author-X-Name-Last: Spiegel 
Author-Name: Joseph Templeman 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Templeman 
Title: Simulation study of the price differentiation effect in a stochastic deteriorating inventory with heterogeneous consumers -- freshness sensitivity 
Abstract:
  A fixed price policy regardless of expiration date may result in unsold
 inventory and sales loss. Price reduction over time as the expiration date
 approaches motivates customers to purchase all items, including the ones
 that are left with only a short interval until their expiration. We
 conduct a discrete event simulation that captures the main characteristics
 of this phenomenon. Results show that a moderate differentiation of price
 increases profits by 6%, a larger differentiation reduces profits. Profits
 are the highest for freshness-oriented customers. A fixed price policy is
 preferred in an environment of large variance and expected near term
 expirations. 
Journal: Applied Economics 
Pages: 3101-3119 
Issue: 24 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.570718 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570718 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:24:p:3101-3119




Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore Capasso 
Author-X-Name-First: Salvatore 
Author-X-Name-Last: Capasso 
Author-Name: Oreste Napolitano 
Author-X-Name-First: Oreste 
Author-X-Name-Last: Napolitano 
Title: Testing for the stability of money demand in Italy: has the Euro influenced the monetary transmission mechanism? 
Abstract:
  Stability of money demand is a crucial issue for the efficacy of monetary
 policy. This is particularly true in the presence of significant exogenous
 shocks to the monetary system. By implementing the most recent econometric
 testing procedures, this article intends to investigate the consistency of
 the stability of money demand in Italy, one of the larger European
 Monetary Union (EMU) countries, before and after the EMU. Among others,
 the objective is, indeed, to ascertain the effect of a change in the
 currency regime on the monetary aggregates and to provide a valid
 empirical model which is a viable tool for policy performance. 
Journal: Applied Economics 
Pages: 3121-3133 
Issue: 24 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.570719 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570719 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:24:p:3121-3133




Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Ayari 
Author-X-Name-First: Nadia 
Author-X-Name-Last: Ayari 
Author-Name: Szabolcs Blazsek 
Author-X-Name-First: Szabolcs 
Author-X-Name-Last: Blazsek 
Author-Name: Pedro Mendi 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Mendi 
Title: Renewable energy innovations in Europe: a dynamic panel data approach 
Abstract:
  We investigate the determinants of renewable energy R&D intensity and the
 impact of renewable energy innovations on firm performance, using several
 dynamic panel data models. We estimate these models using a large data set
 of European firms from 19 different countries, with some patenting
 activity in areas related to renewable energies during the 1987 to 2007
 period. Our results confirm our priors on the determinants of the rapid
 development of renewable energy R&D intensity during the past decades.
 Additionally, we find evidence that renewable patent intensity has a
 significant dynamic impact on the stock market value of firms. 
Journal: Applied Economics 
Pages: 3135-3147 
Issue: 24 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.570720 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570720 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:24:p:3135-3147




Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed   A. Marouani 
Author-X-Name-First: Mohamed   A. 
Author-X-Name-Last: Marouani 
Author-Name: David   A. Robalino 
Author-X-Name-First: David   A. 
Author-X-Name-Last: Robalino 
Title: Assessing interactions among education, social insurance and labour market policies in Morocco 
Abstract:
  This article develops a general equilibrium model to assess the impact
 that integrated reforms of macroeconomic, education and social protection
 policies can have on employment. The model presents three innovations.
 First, it formalizes the production of skills in the economy by following
 sex--age cohorts through the various levels of the education and training
 systems, given dropout and repetition rates. Second, it incorporates a
 module that projects social insurance expenditures as a function of the
 demographic structure of the country and the rules of the pension system.
 Finally, it develops a very detailed description of the labour market,
 where informality reflects strategic decisions by workers and not
 necessarily exclusion. The model is applied to Morocco. The results of
 various simulations illustrate the importance of coordinating macro,
 education and social protection policies in order to achieve meaningful
 effects on employment levels. In particular, we show that isolated
 interventions to improve the internal efficiency of the education system
 can aggravate the unemployment problem; that subsidies to investments are
 more efficient in sectors intensive in skilled labour; and that not
 controlling the growth of pension expenditures and the tax-wedge can
 depress employment in the formal sector. 
Journal: Applied Economics 
Pages: 3149-3167 
Issue: 24 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.570721 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570721 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:24:p:3149-3167




Template-Type: ReDIF-Article 1.0
Author-Name: Jenifer Piesse 
Author-X-Name-First: Jenifer 
Author-X-Name-Last: Piesse 
Author-Name: Bruce Allen Hearn 
Author-X-Name-First: Bruce Allen 
Author-X-Name-Last: Hearn 
Title: The law of one price: an examination of price integration between Europe and regional markets in Africa 
Abstract:
  This study examines the degree of price-integration of equity indices
 between the major markets of Africa, namely Morocco, Tunisia, Egypt,
 Kenya, Nigeria, Namibia and South Africa with the European markets of
 London and Paris. Vector Autoregressive and Autoregressive Distributed Lag
 methods reveal that African markets are largely price-segmented. The only
 markets that are price-integrated have shared economic and financial
 institutions, such as Namibia and South Africa, and Egypt, Tunisia and
 France. The evidence suggests that development policy should be focussed
 on enhancing existing institutions rather than embarking prematurely on
 regional integration. 
Journal: Applied Economics 
Pages: 3169-3193 
Issue: 24 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.570722 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570722 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:24:p:3169-3193




Template-Type: ReDIF-Article 1.0
Author-Name: Bahar   Bayraktar Saglam 
Author-X-Name-First: Bahar   Bayraktar 
Author-X-Name-Last: Saglam 
Author-Name: Burak Gunalp 
Author-X-Name-First: Burak 
Author-X-Name-Last: Gunalp 
Title: The Beveridge curve and labour market dynamics in Turkey 
Abstract:
  This article investigates the dynamics of unemployment and vacancy rates
 in Turkey during the period 1951 to 2008 by means of a Beveridge Curve
 (BC). The time-series analysis of unemployment and vacancies as well as
 two other relevant labour market variables, real wages and real labour
 productivity, strongly suggests inefficiency in the Turkish labour market.
 A stable long-run relationship between unemployment rate and vacancy rate
 is found for Turkey, that is, the existence of a negatively sloped BC is
 verified. The estimated Turkish BC reflects the structural problems and
 lack of flexibility in the labour market. The modified BC with real wages
 and labour productivity reveals that labour productivity has no
 significant effect on unemployment rate whereas wages have positive and
 significant effects on the same variable. 
Journal: Applied Economics 
Pages: 3195-3202 
Issue: 24 
Volume: 44 
Year: 2012 
Month: 8 
X-DOI: 10.1080/00036846.2011.570725 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570725 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:24:p:3195-3202




Template-Type: ReDIF-Article 1.0
Author-Name: Albert Sol魏ll頍
Author-X-Name-First: Albert 
Author-X-Name-Last: Sol魏ll頍
Author-Name: Pilar Sorribas-Navarro 
Author-X-Name-First: Pilar 
Author-X-Name-Last: Sorribas-Navarro 
Title: The dynamic adjustment of local government budgets: does Spain behave differently? 
Abstract:
  The aim of this article is to analyse whether Spanish municipalities
 adjust in response to budget shocks and (if so) which elements of the
 budget they are more likely to adjust. The methodology we use to answer
 these questions is a Vector Error Correction Model (VECM), estimated with
 data from a panel of Spanish municipalities during the period 1988 to
 2006. Our results confirm that Spanish municipalities do indeed make
 adjustments in response to fiscal shocks (i.e. the deficit is stationary
 in the long run). We compare our results with those obtained for US and
 Germany to evaluate if the viability of local finance depends on the
 institutional arrangement and to analyse how it affects the adjustment
 patterns. We observe that grants have a more important role in the
 adjustment process in environments where either they have an equalization
 objective or where there is no clear rule that determines their
 distribution. This fact can generate a moral hazard problem: governments
 tend to spend more due to the expected intervention by the central
 government. Own revenues have a lower adjustment capacity in environments
 where subcentral governments have limited fiscal autonomy. These results,
 however, suggest that the viability of the local finance system is
 feasible with different institutional arrangements. 
Journal: Applied Economics 
Pages: 3203-3213 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.570723 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570723 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3203-3213




Template-Type: ReDIF-Article 1.0
Author-Name: I. Chatterjee 
Author-X-Name-First: I. 
Author-X-Name-Last: Chatterjee 
Author-Name: R. Ray 
Author-X-Name-First: R. 
Author-X-Name-Last: Ray 
Title: Does the evidence on corruption depend on how it is measured? Results from a cross-country study on microdata sets 
Abstract:
  While much of the existing literature on corruption looks at the effect
 of corruption on macro variables such as growth rates and income
 distribution, this study provides a departure by focussing on victims of
 corruption by using microdata to compare civilian and business corruption.
 This study finds that businesses face a stronger incidence of bribe
 demands than individuals. Though there are several differences between the
 determinants of the two forms of bribe victimization, there are also some
 similarities. Policies to combat corruption need to take into account both
 the differences and the similarities. 
Journal: Applied Economics 
Pages: 3215-3227 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.570724 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570724 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3215-3227




Template-Type: ReDIF-Article 1.0
Author-Name: Lee Chin 
Author-X-Name-First: Lee 
Author-X-Name-Last: Chin 
Author-Name: M. Azali 
Author-X-Name-First: M. 
Author-X-Name-Last: Azali 
Title: Testing the validity of the monetary model for ASEAN with structural break 
Abstract:
  This study examines the validity of the long run structural relations
 underlying the monetary exchange rate model for Malaysia, Singapore, The
 Philippines and Thailand. Take into consideration the possibility of
 structural change, we examined the models using recent developed
 techniques of testing unit root and cointegration with a structural break.
 Our findings of three cointegrating relations among the variables in the
 system were further identified by testing theoretical restrictions on the
 cointegrating equations. The long run relationships were able to be
 interpreted according to the theory, hence, support the long run validity
 of the monetary exchange rate model. 
Journal: Applied Economics 
Pages: 3229-3236 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.570726 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570726 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3229-3236




Template-Type: ReDIF-Article 1.0
Author-Name: Jim Allen 
Author-X-Name-First: Jim 
Author-X-Name-Last: Allen 
Author-Name: Andries de Grip 
Author-X-Name-First: Andries 
Author-X-Name-Last: de Grip 
Title: Does skill obsolescence increase the risk of employment loss? 
Abstract:
  In this article, we analyse whether technological change induces skill
 obsolescence and early labour market exit, and to what extent training
 participation and on the job learning reduce these risks. Using panel data
 on older workers, we find that workers report skill obsolescence more
 often when learning is a structural characteristic of the job. This
 perceived skill obsolescence is not related to a higher probability of
 losing employment. Instead, workers who experience skill obsolescence
 appear to learn more on the job and participate more often in training,
 which decreases the risk of losing employment. These results are
 consistent with the dynamic model of skill obsolescence and employment
 loss we develop in this article. Moreover, we find that when workers with
 long job tenures decrease their training participation, this is an early
 indicator of future job loss. 
Journal: Applied Economics 
Pages: 3237-3245 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.570727 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570727 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3237-3245




Template-Type: ReDIF-Article 1.0
Author-Name: Sim&#xF3;n Sosvilla-Rivero 
Author-X-Name-First: Sim&#xF3;n 
Author-X-Name-Last: Sosvilla-Rivero 
Author-Name: Salvador Gil-Pareja 
Author-X-Name-First: Salvador 
Author-X-Name-Last: Gil-Pareja 
Title: Convergence in car prices among European countries 
Abstract:
  This article contributes to the literature on price convergence in Europe
 by investigating the existence of stochastic and deterministic convergence
 of car prices in the EU15 countries. We apply recently developed
 econometric techniques that allow for multiple structural breaks to an
 up-to-date dataset. We find considerable evidence of both types of
 convergence in our sample of countries and car models, therefore
 suggesting a tendency for relative prices to equalize over time. In
 addition, we find evidence regarding the importance in this convergence
 process of both legislative changes taking place in the years 1996 and
 2002, and the implementation of Economic and Monetary Union (EMU). 
Journal: Applied Economics 
Pages: 3247-3254 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.570728 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570728 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3247-3254




Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Wei Su 
Author-X-Name-First: Chi-Wei 
Author-X-Name-Last: Su 
Author-Name: Hsu-Ling Chang 
Author-X-Name-First: Hsu-Ling 
Author-X-Name-Last: Chang 
Author-Name: Meng-Nan Zhu 
Author-X-Name-First: Meng-Nan 
Author-X-Name-Last: Zhu 
Title: Flexible Fourier stationary test in purchasing power parity for African countries 
Abstract:
  This study applies stationary test with a Fourier function proposed by
 Enders and Lee (2004, 2009) to test the validity of long run Purchasing
 Power Parity (PPP) to assess the nonstationary properties of the real
 exchange rate for 20 African countries. We find that our approximation has
 higher power to detect U shaped breaks and smooth breaks than linear
 method if the true data generating process of exchange rate is in fact a
 stationary nonlinear process. We examine the validity of PPP from the
 nonlinear point of view and provide robust evidence clearly indicate that
 PPP holds true for almost African countries. Our findings point out their
 exchange rate adjustment is mean reversion towards PPP equilibrium values
 in a nonlinear way. 
Journal: Applied Economics 
Pages: 3255-3262 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.570729 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570729 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3255-3262




Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Wei Su 
Author-X-Name-First: Chi-Wei 
Author-X-Name-Last: Su 
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Yu-Shao Liu 
Author-X-Name-First: Yu-Shao 
Author-X-Name-Last: Liu 
Title: Revisiting purchasing power parity for African countries: with nonlinear panel unit-root tests 
Abstract:
  This study applies Panel Seemingly Unrelated Regressions (SUR) Kapetanios
 <italic>et&#xA0;al</italic>. (Kapetanios--Shin--Snell (KSS), SURKSS)
 tests, proposed by Wu and Lee (2009), to investigate the properties of
 long-run Purchasing Power Parity (PPP) in 15 African countries. The
 empirical results from the univariate unit root and panel based unit root
 tests indicate that PPP does not hold for these 15 countries under study.
 However, Panel SURKSS tests indicate that PPP is valid for four of these
 15 countries. These results have important policy implications for these
 15 African countries under study. 
Journal: Applied Economics 
Pages: 3263-3273 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.570730 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3263-3273




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou 
Author-X-Name-First: Chris 
Author-X-Name-Last: Sakellariou 
Title: Central Government versus private sector wages and cognitive skills: evidence using endogenous switching regression 
Abstract:
  The importance of estimation techniques that allow for nonrandom
 selection of workers into the public and private sectors has been
 established in the theoretical and empirical literature. A separate body
 of work has explored the contribution of cognitive and other basic skills
 to earnings. This article brings together these two strands of empirical
 literature using Adult Literacy and Lifeskills (ALL) survey data for
 Norway and Bermuda. In the case of Norway, results from both Ordinary
 Least Squares (OLS) and a switching regression model agree that cognitive
 skills are rewarded more in the public sector and that, in both sectors,
 the main effect is the direct effect of skills on earnings. In the case of
 Bermuda, however, switching regression estimates are substantially
 different with respect to the how skills affect earnings; furthermore,
 controlling for cognitive skills changes the nature of selection and,
 hence, the estimates of sector wage differentials. 
Journal: Applied Economics 
Pages: 3275-3286 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.572854 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572854 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3275-3286




Template-Type: ReDIF-Article 1.0
Author-Name: F. Holm-Hadulla 
Author-X-Name-First: F. 
Author-X-Name-Last: Holm-Hadulla 
Author-Name: S. Hauptmeier 
Author-X-Name-First: S. 
Author-X-Name-Last: Hauptmeier 
Author-Name: P. Rother 
Author-X-Name-First: P. 
Author-X-Name-Last: Rother 
Title: The impact of expenditure rules on budgetary discipline over the cycle 
Abstract:
  We study the impact of expenditure rules on the propensity for
 governments to deviate from their expenditure plans in response to
 surprising cyclical developments. Theoretical considerations suggest that
 due to political fragmentation in the budgetary process expenditure policy
 might be prone to a procyclical bias. However, this tendency may be
 mitigated by strictly enforced expenditure rules. These hypotheses are
 tested against data from a panel of EU Member States. Our key findings are
 that (1) deviations between actual and planned government expenditure tend
 to be positively related to output gap surprises, and (2) expenditure
 rules reduce this procyclical bias. These results are particularly
 pronounced when the analysis is confined to spending items with a high
 degree of budgetary flexibility. 
Journal: Applied Economics 
Pages: 3287-3296 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.572855 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572855 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3287-3296




Template-Type: ReDIF-Article 1.0
Author-Name: Chandra   Bahadur Adhikari 
Author-X-Name-First: Chandra   Bahadur 
Author-X-Name-Last: Adhikari 
Author-Name: Trond Bjorndal 
Author-X-Name-First: Trond 
Author-X-Name-Last: Bjorndal 
Title: Analyses of technical efficiency using SDF and DEA models: evidence from Nepalese agriculture 
Abstract:
  Alleviation of poverty is a central issue in Nepal. Given the limited
 stock of land and the infant/unorganized manufacturing sector, increased
 demand for food has to be satisfied by improving production efficiency.
 This article examines how this could be achieved. Stochastic distance
 function and data envelopment analysis models identify the existence of a
 high degree of technical inefficiency in Nepalese agriculture, suggesting
 that there is a substantial prospect of increasing agricultural
 productivity using the existing level of inputs and resources more
 efficiently. Among the three farm sizes in the data set, medium size
 farmers achieve a higher technical efficiency than large and small farm
 sizes, suggesting that productive efficiency can be increased with the
 encouragement of creating medium size holdings. The observed decreasing
 returns to scale also implies that productivity gains could be achieved by
 breaking up of large farms into small family farms. The technical
 inefficiency model suggests the potential for shifting the production
 frontier upwards by providing ownership of land, increasing
 farmers&#x2019; education and knowledge, and increasing land quality,
 including irrigation facilities. 
Journal: Applied Economics 
Pages: 3297-3308 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.572856 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572856 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3297-3308




Template-Type: ReDIF-Article 1.0
Author-Name: Luis   A. Gil-Alana 
Author-X-Name-First: Luis   A. 
Author-X-Name-Last: Gil-Alana 
Author-Name: Antonio Moreno 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Moreno 
Author-Name: Seonghoon Cho 
Author-X-Name-First: Seonghoon 
Author-X-Name-Last: Cho 
Title: The Deaton paradox in a long memory context with structural breaks 
Abstract:
  This article contributes to the Permanent Income Hypothesis (PIH) and
 excess consumption smoothness debate in the context of fractional
 integration. We show that the excess consumption smoothness result is a
 consequence of the quarterly data frequency commonly employed in the
 empirical work. In fact, the <italic>I</italic>(1) hypothesis is rejected
 for the income process with monthly data in favour of a fractional
 integration order lower than 1. Moreover, if a structural break is taken
 into account, we observe a substantial reduction in the degree of
 consumption smoothness, especially after the break found in 1975. 
Journal: Applied Economics 
Pages: 3309-3322 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.572857 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572857 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3309-3322




Template-Type: ReDIF-Article 1.0
Author-Name: Isabelle Clerc 
Author-X-Name-First: Isabelle 
Author-X-Name-Last: Clerc 
Author-Name: Olivier L&#x2019;Haridon 
Author-X-Name-First: Olivier 
Author-X-Name-Last: L&#x2019;Haridon 
Author-Name: Alain Paraponaris 
Author-X-Name-First: Alain 
Author-X-Name-Last: Paraponaris 
Author-Name: Camelia Protopopescu 
Author-X-Name-First: Camelia 
Author-X-Name-Last: Protopopescu 
Author-Name: Bruno Ventelou 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Ventelou 
Title: Fee-for-service payments and consultation length in general practice: a work--leisure trade-off model for French GPs 
Abstract:
  This article presents an adaptation of the labour supply model applied to
 the independent medical sector. First, we model simultaneous General
 Practitioner (GP) decisions on both the leisure time and the consultation
 length for two payment schemes: fixed fees and unregulated fees. The
 objective of this econometric study is to validate the theoretical
 prediction that doctors under unregulated fees may make choices about the
 length of patient consultations independent of their personal leisure
 decision. Indeed, according to our empirical results, the bidirectional
 link between leisure choice and consultation length -- verified with fixed
 fees -- does not hold any longer under unregulated fees. Our findings can
 be seen as a necessary but not a sufficient condition to legitimize
 unregulated fees in general practice. 
Journal: Applied Economics 
Pages: 3323-3337 
Issue: 25 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.572858 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572858 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:25:p:3323-3337




Template-Type: ReDIF-Article 1.0
Author-Name: Johane Dikgang 
Author-X-Name-First: Johane 
Author-X-Name-Last: Dikgang 
Author-Name: Anthony Leiman 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Leiman 
Author-Name: Martine Visser 
Author-X-Name-First: Martine 
Author-X-Name-Last: Visser 
Title: Elasticity of demand, price and time: lessons from South Africa's plastic-bag levy 
Abstract:
  Policy makers in many countries have perceived plastic-bag litter as a
 problem, and have used a variety of regulatory tools to address it. South
 Africa's current legislation on plastic-bags came into effect on 7 May
 2003. It increased the thickness of the plastic used, charged a small levy
 and required that bags be sold rather than distributed gratis. These
 regulations sharply reduced consumption of plastic bags in the short term,
 but unlike the Irish and Danish levies have failed to curb their use
 meaningfully in the long run. It is suggested that the initial sharp fall
 in use of bags was a result of loss aversion rooted in an endowment effect
 (the bags having long been a free good). Once consumers became accustomed
 to paying for bags, demand slowly rose to its historic levels. 
Journal: Applied Economics 
Pages: 3339-3342 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.572859 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572859 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3339-3342




Template-Type: ReDIF-Article 1.0
Author-Name: Gylfi Zoega 
Author-X-Name-First: Gylfi 
Author-X-Name-Last: Zoega 
Title: Employment and asset prices 
Abstract:
  A medium-term relationship exists between share prices, normalized by
 labour productivity, and the rate of unemployment in the Organization for
 Economic Co-operation and Development (OECD) countries. This helps explain
 decadal changes in mean unemployment, such as the shift to higher mean
 unemployment in the Continental European countries in the 1970s and 1980s
 that coincided with a fall in the level of share prices, as well as
 differences in mean unemployment between countries. 
Journal: Applied Economics 
Pages: 3343-3355 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.572860 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572860 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3343-3355




Template-Type: ReDIF-Article 1.0
Author-Name: Takanori Ida 
Author-X-Name-First: Takanori 
Author-X-Name-Last: Ida 
Title: Beyond mobile number portability: measuring consumer preferences for service portability in Japan's mobile phone market 
Abstract:
  Japan's mobile phone market has been oligopolized by three incumbents who
 are seeking vertically integrated business models, which may prevent
 competitors from using platform layers to provide original services. We
 conduct two types of conjoint analysis to measure consumer stated
 preferences and draw two main conclusions from the analyses. First, the
 average consumer is willing to pay more than JPY 2000 (US $20) to increase
 mobile service portability. Second, the average consumer's willingness to
 pay corresponds to JPY 100--200 (US $1--2) per song for securing music
 download platforms. A dilemma exists in consumer preferences for service
 portability in Japan's mobile phone market, namely the choice between free
 mobile service portability and convenient music download platforms. 
Journal: Applied Economics 
Pages: 3357-3369 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577011 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577011 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3357-3369




Template-Type: ReDIF-Article 1.0
Author-Name: Yasuyuki Sawada 
Author-X-Name-First: Yasuyuki 
Author-X-Name-Last: Sawada 
Author-Name: Jonna   P. Estudillo 
Author-X-Name-First: Jonna   P. 
Author-X-Name-Last: Estudillo 
Title: The MDGs and exit time: the case of the Philippines 
Abstract:
  This article evaluates whether the Philippines will be able to halve the
 incidence of poverty between 1990 and 2015. Using the concept of exit time
 and household&#x2010;level data, we find that the Philippines as a whole
 will not be able to comply with Target 1 of the Millennium Development
 Goals (MDGs), although 15 of its provinces will be able to do so. These
 provinces are closer to Manila, characterized by higher per capita
 expenditure growth rates, and had lower incidence of poverty in 1988. This
 suggests the importance of policies to mitigate the regional disparity in
 achieving the MDGs. 
Journal: Applied Economics 
Pages: 3371-3377 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577012 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577012 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3371-3377




Template-Type: ReDIF-Article 1.0
Author-Name: Chanjin Chung 
Author-X-Name-First: Chanjin 
Author-X-Name-Last: Chung 
Author-Name: Em󚑯 Tost&#xE3;o 
Author-X-Name-First: Em󚑯 
Author-X-Name-Last: Tost&#xE3;o 
Title: Effects of horizontal consolidation under bilateral imperfect competition between processors and retailers 
Abstract:
  This article considers bilateral imperfect competition between processors
 and retailers to estimate the trade off between market power and cost
 efficiency. The model is based on pricing rules from a firm's profit
 maximization and nests both oligopoly and oligopsony models. An empirical
 analysis for US beef processors and retailers suggests that processors
 tend to exercise oligopsony market power in procuring cattle, but they are
 unlikely to exercise market power on retailers. When retailers and
 processors are considered as one integrated sector, efficiency effects
 from the increased concentration in the US beef packing industry are
 slightly larger than market power effects. When processors&#x2019; market
 power is considered separately from retailers&#x2019; market power, the
 difference between cost saving and market power effects becomes greater.
 The cost elasticity estimate, 0.99, indicates that a further merger would
 result in little economies of scale in the future. Therefore, although we
 find that efficiency effects are currently larger than market power
 effects, a further increase in concentration in the US beef processing
 industry could narrow the gap between the two effects. 
Journal: Applied Economics 
Pages: 3379-3389 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577013 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577013 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3379-3389




Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Justino 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Justino 
Title: Multidimensional welfare distributions: empirical application to household panel data from Vietnam 
Abstract:
  This article explores the empirical application of theoretical
 multidimensional welfare distribution analysis techniques to real
 household welfare distributions. The article operationalizes recent
 conceptual developments in multidimensional distribution theory and
 assesses their usefulness for the measurement of multidimensional
 household inequality. The results strongly highlight the importance of
 bringing nonmonetary aspects of household welfare into the forefront of
 inequality analysis. Agreement over the various approaches to the
 measurement of multidimensional inequality entails, however, nontrivial
 decisions that may limit the practical usefulness of these measures. We
 suggest that the use of multidimensional inequality ranges and the
 application of restrictive dominance criteria to multidimensional welfare
 distributions may open significant scope for further developments in the
 empirical analysis of multidimensional inequality. 
Journal: Applied Economics 
Pages: 3391-3405 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577014 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577014 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3391-3405




Template-Type: ReDIF-Article 1.0
Author-Name: S颡stien W&#xE4;lti 
Author-X-Name-First: S颡stien 
Author-X-Name-Last: W&#xE4;lti 
Title: The myth of decoupling 
Abstract:
  The decoupling hypothesis is the idea that business cycles in emerging
 market economies have become more independent from business cycles in
 advanced economies in recent years. Decoupling essentially amounts to a
 structural break in the degree of business cycle interdependence between
 the two groups of economies, and it can be tested as such. We develop an
 innovative measure of business cycle interdependence based on the
 Euclidean distance, available at the annual frequency, which allows for a
 proper test for a structural break in a graphical setup. We also make use
 of a standard econometric test. Both approaches point to the same
 conclusion: there has been no decoupling in recent years. If anything, the
 degree of business cycle interdependence has become stronger. 
Journal: Applied Economics 
Pages: 3407-3419 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577015 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577015 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3407-3419




Template-Type: ReDIF-Article 1.0
Author-Name: Shakil Quayes 
Author-X-Name-First: Shakil 
Author-X-Name-Last: Quayes 
Title: Depth of outreach and financial sustainability of microfinance institutions 
Abstract:
  The primary justification for subsidizing Microfinance Institutions
 (MFIs) is their enhancement of social welfare by extending credit to the
 poor households. Therefore, recent emphasis on their financial
 self-sufficiency has created concern, that this may adversely affect the
 mission of social outreach. Utilizing data from 702 MFIs operating in 83
 countries, this study shows empirical evidence of a positive complementary
 relationship between financial sustainability and depth of outreach. 
Journal: Applied Economics 
Pages: 3421-3433 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577016 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577016 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3421-3433




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian   R. Bell 
Author-X-Name-First: Adrian   R. 
Author-X-Name-Last: Bell 
Author-Name: Chris Brooks 
Author-X-Name-First: Chris 
Author-X-Name-Last: Brooks 
Author-Name: David Matthews 
Author-X-Name-First: David 
Author-X-Name-Last: Matthews 
Author-Name: Charles Sutcliffe 
Author-X-Name-First: Charles 
Author-X-Name-Last: Sutcliffe 
Title: Over the moon or sick as a parrot? The effects of football results on a club's share price 
Abstract:
  This article considers the impact of match results on the stock returns
 of English football clubs. We propose that the magnitude of the response
 to a given result depends on the importance of the game, which is measured
 in two ways. First, we consider the extent to which the clubs are close
 rivals vying for similar league positions, as winning such games is
 particularly significant. Second, we argue that each individual game
 becomes more important for those clubs likely to be promoted or relegated
 as the season draws to a close, since a given match will have increasing
 information content concerning the final league position of the club.
 Using a fairly large panel comprising data for 19 clubs, we find some
 support for the notion that stock prices are affected more by the results
 of important matches than matches of lesser importance. We also observe
 that the difference between the number of points the club secures from a
 given match, and the number it was expected to secure, affects its stock
 price, as does the number of goals that the club under question scores in
 the match, relative to its competitor. 
Journal: Applied Economics 
Pages: 3435-3452 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577017 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577017 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3435-3452




Template-Type: ReDIF-Article 1.0
Author-Name: Sheng-Kai Chang 
Author-X-Name-First: Sheng-Kai 
Author-X-Name-Last: Chang 
Title: State dependence, serial correlation and heterogeneity in the union membership dynamics 
Abstract:
  In order to distinguish the true and spurious state dependence from the
 complicated dynamics of union membership, the simulation estimators
 incorporating the lagged dependent variables, unobserved individual
 heterogeneity and correlations among the errors are implemented in this
 article to study union membership dynamics. It is found that the true
 state dependence of union membership under multivariate <italic>t</italic>
 assumption is much higher than the standard dynamic panel probit
 estimators which are under multivariate normal assumptions. On the other
 hand, the spurious state dependence (the variance of the unobserved
 individual heterogeneity) is estimated to be higher when using the
 standard dynamic panel probit estimators than under multivariate
 <italic>t</italic> assumption. Moreover, blacks and married men are found
 to have higher union membership true state dependence than whites and
 unmarried men. 
Journal: Applied Economics 
Pages: 3453-3460 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577018 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577018 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3453-3460




Template-Type: ReDIF-Article 1.0
Author-Name: Tim Pawlowski 
Author-X-Name-First: Tim 
Author-X-Name-Last: Pawlowski 
Author-Name: Christoph Breuer 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Breuer 
Title: Expenditure elasticities of the demand for leisure services 
Abstract:
  Although some research has already focused on the analysis of expenditure
 elasticities of leisure demand, some shortcomings with regard to the
 content and the underlying theoretical model as well as the applied
 methods exist. This article aims at avoiding these problems to provide
 consistent derivatives of leisure service expenditure elasticities.
 Therefore, a regular demand system is derived from microeconomic duality
 theory. To implement leisure specific demand factors (i.e. demand- and
 supply-based sports and recreational opportunities as well as sports and
 recreational preferences) while still being consistent with neoclassical
 demand theory, the basic model is extended by applying the demographic
 translation framework. Data of the continuous household budget survey
 (<italic>n</italic>&#x2009;=&#x2009;7724) from Germany is used for the
 estimation of the derived demand system. It is shown how sensitive the
 results are depending on the applied (censored) regression model: 16 out
 of 18 analysed services are indicated as luxury goods based on the
 findings of the Tobit model type I but as necessities based on the
 findings of the Tobit model type II. Possible implications are presented
 and discussed. 
Journal: Applied Economics 
Pages: 3461-3477 
Issue: 26 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577021 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:26:p:3461-3477




Template-Type: ReDIF-Article 1.0
Author-Name: Jung-Suk Yu 
Author-X-Name-First: Jung-Suk 
Author-X-Name-Last: Yu 
Author-Name: M.   Kabir Hassan 
Author-X-Name-First: M.   Kabir 
Author-X-Name-Last: Hassan 
Author-Name: Benito Sanchez 
Author-X-Name-First: Benito 
Author-X-Name-Last: Sanchez 
Title: A re-examination of financial development, stock markets development and economic growth 
Abstract:
  This study provides new evidence on the role of financial development and
 stock market development in accounting for economic growth across
 geographic regions and income groups. To derive feasible policy
 implications, we estimate not only unbalanced panel regressions with
 period fixed effects, but also variance decompositions of annual Gross
 Domestic Product (GDP) growth rates to examine what proxy measures are
 most important in economic growth over time and how much they contribute
 to economic growth. We find distinct direction, timing and strength of the
 causal links between financial development, stock market development and
 economic growth based on the results of Granger causality tests.
 Therefore, it may be necessary to make different efforts to achieve steady
 economic growth across geographic regions and income groups. 
Journal: Applied Economics 
Pages: 3479-3489 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577019 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577019 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3479-3489




Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Ming Wu 
Author-X-Name-First: Wei-Ming 
Author-X-Name-Last: Wu 
Title: Capacity utilization and its determinants for a container shipping line: theory and evidence 
Abstract:
  Under-utilization of fleet capacity appears to be a long-lasting issue in
 the container shipping industry. Also, there are some difficulties
 unsolved while measuring the ratio of Capacity Utilization (CU) of a
 container shipping line. From the perspective of an engineering approach,
 the slots capacity installed is the most popular way to represent the
 capacity output. Since the slots capacity installed lacks theoretical
 support, this study adopts an economics model to find the capacity output
 of a shipping line. Further, the derived CU ratio identifies the realized
 utilization of fleet capacity for a shipping line. Focused on the three
 largest container shipping lines in Taiwan, this article shows that their
 fleet capacity are totally under-utilized and the movement patterns of CU
 ratios are approximately identical. In addition, the variations of CU
 ratios also suggest that the enactment of Ocean Shipping Reform Act has
 contributed a positive effect on the capacity utilization of a container
 shipping line. Finally, by running a regression model to investigate the
 determinants of CU ratios, the result indicates that demand condition and
 global shipping alliance are two critical factors to improve the
 utilization of fleet capacity for a container shipping line. 
Journal: Applied Economics 
Pages: 3491-3502 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577020 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3491-3502




Template-Type: ReDIF-Article 1.0
Author-Name: Sophie B鲥au 
Author-X-Name-First: Sophie 
Author-X-Name-Last: B鲥au 
Author-Name: Antonia   L&#xF3;pez Villavicencio 
Author-X-Name-First: Antonia   L&#xF3;pez 
Author-X-Name-Last: Villavicencio 
Author-Name: Val鲩e Mignon 
Author-X-Name-First: Val鲩e 
Author-X-Name-Last: Mignon 
Title: Currency misalignments and growth: a new look using nonlinear panel data methods 
Abstract:
  The aim of this article is to investigate the link between currency
 misalignments and economic growth. Relying on panel cointegration
 techniques, we calculate Real Exchange Rate (RER) misalignments as
 deviations of actual RERs from their equilibrium values for a set of
 advanced and emerging economies. Estimating Panel Smooth Transition
 Regression (PSTR) models, we show that RER misalignments have a
 differentiated impact on economic growth depending on their sign: whereas
 overvaluations negatively affect economic growth, RER undervaluations
 significantly enhance it. This result indicates that undervaluations may
 drive the exchange rate to a level that encourages exports and promotes
 growth. 
Journal: Applied Economics 
Pages: 3503-3511 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577022 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577022 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3503-3511




Template-Type: ReDIF-Article 1.0
Author-Name: Hiroki Iwata 
Author-X-Name-First: Hiroki 
Author-X-Name-Last: Iwata 
Author-Name: Keisuke Okada 
Author-X-Name-First: Keisuke 
Author-X-Name-Last: Okada 
Author-Name: Sovannroeun Samreth 
Author-X-Name-First: Sovannroeun 
Author-X-Name-Last: Samreth 
Title: Empirical study on the determinants of CO<sub>2</sub> emissions: evidence from OECD countries 
Abstract:
  This article empirically investigates the Environmental Kuznets Curve
 (EKC) for CO<sub>2</sub> emissions in the cases of 11 OECD countries by
 taking into account the role of nuclear energy in electricity production.
 The autoregressive distributed lag approach to cointegration is employed
 as the estimation method. Our results indicate that energy consumption has
 a positive impact on CO<sub>2</sub> emissions in most countries in the
 study. However, the impact of trade is not statistically significant. The
 results provide evidence for the role of nuclear power in reducing
 CO<sub>2</sub> emissions only in some countries. Additionally, although
 the estimated long-run coefficients of income and its square satisfy the
 EKC hypothesis in Finland, Japan, Korea and Spain, only Finland's EKC
 turning point is inside the sample period of the study, providing poor
 evidence in support of the EKC hypothesis. 
Journal: Applied Economics 
Pages: 3513-3519 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577023 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577023 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3513-3519




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Sutter 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Sutter 
Title: Is the media liberal? An indirect test using news magazine circulation 
Abstract:
  Many critics allege that the US national news media is biased in favour
 of liberal causes and Democratic candidates. The lack of an objective
 measure of news content ensures that such charges remain controversial. I
 consider an indirect test for media bias: if the national news media do
 exhibit a liberal bias, consumption should be higher in liberal media
 markets, <italic>ceteris paribus</italic>. I examine determinants of
 circulation of the three major weekly news magazines across the US and
 find that <italic>Newsweek</italic> and <italic>Time</italic> have higher
 circulation in liberal markets while <italic>US News</italic> has higher
 circulation in conservative markets. The evidence is consistent with a
 liberal bias for <italic>Time</italic> and <italic>Newsweek</italic>,
 while <italic>US News</italic> may be relatively conservative (but still
 left of centre) or absolutely conservative. 
Journal: Applied Economics 
Pages: 3521-3532 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577024 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577024 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3521-3532




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios   P. Louzis 
Author-X-Name-First: Dimitrios   P. 
Author-X-Name-Last: Louzis 
Author-Name: Spyros Xanthopoulos-Sisinis 
Author-X-Name-First: Spyros 
Author-X-Name-Last: Xanthopoulos-Sisinis 
Author-Name: Apostolos   P. Refenes 
Author-X-Name-First: Apostolos   P. 
Author-X-Name-Last: Refenes 
Title: Stock index realized volatility forecasting in the presence of heterogeneous leverage effects and long range dependence in the volatility of realized volatility 
Abstract:
  In this article, we account for the presence of heterogeneous leverage
 effects and the persistence in the volatility of stock index realized
 volatility. The Heterogeneous Autoregressive (HAR) Realized Volatility
 (RV) model is extended in order to account for asymmetric responses to
 negative and positive shocks occurring at distinct frequencies, as well
 as, for the long range dependence in the heteroscedastic variance of the
 residuals. Compared with established HAR and Autoregressive Fractionally
 Integrated Moving Average (ARFIMA) realized volatility models, the
 proposed model exhibits superior in sample fitting, as well as, out of
 sample volatility forecasting performance. The latter is further improved
 when the Realized Power Variation (RPV) is used as a regressor, while we
 show that our analysis is also robust against microstructure noise. 
Journal: Applied Economics 
Pages: 3533-3550 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577025 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577025 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3533-3550




Template-Type: ReDIF-Article 1.0
Author-Name: Hyunchul Lee 
Author-X-Name-First: Hyunchul 
Author-X-Name-Last: Lee 
Author-Name: Seokchin Kim 
Author-X-Name-First: Seokchin 
Author-X-Name-Last: Kim 
Author-Name: Jinsu Kim 
Author-X-Name-First: Jinsu 
Author-X-Name-Last: Kim 
Title: Open technology innovation activity and firm value: evidence from Korean firms 
Abstract:
  Despite the importance of Open Technology Innovation Activity (OTIA) for
 firm value, the literature investigating effects of OTIA announcements of
 developing country firms is not known in international academic circles.
 Our study using an event study approach examines the effects of OTIA
 (technology import and joint R&D) announcements of firms in Korea, one of
 the leading developing and highly innovative countries. We find that the
 announcements of OTIA produce positive average abnormal returns.
 Interestingly, unlike the prior studies on developed country firms, OTIA
 with firms in the homogenous industry leads to greater firm value than
 that involving firms in heterogenic industries. This implies an importance
 of a technological fusion with external firms in different industries for
 value of developing country firms. In addition, this article finds no home
 bias that a nationality of partner firms is not essential for the relation
 between OTIA and value of firms. 
Journal: Applied Economics 
Pages: 3551-3561 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577026 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3551-3561




Template-Type: ReDIF-Article 1.0
Author-Name: Abul Shamsuddin 
Author-X-Name-First: Abul 
Author-X-Name-Last: Shamsuddin 
Author-Name: Dong Xiang 
Author-X-Name-First: Dong 
Author-X-Name-Last: Xiang 
Title: Does bank efficiency matter? Market value relevance of bank efficiency in Australia 
Abstract:
  The stochastic frontier analysis is employed to investigate efficiency of
 publicly listed Australian banks over the period 1985 to 2008. The results
 suggest that technical, cost and profit efficiency of Australian banks
 have improved over time. Large banks have attained a higher level of cost
 efficiency but a lower level of technical efficiency compared to small
 banks. No substantial difference between the two groups is found in terms
 of profit efficiency. A panel regression of bank stock return on bank
 efficiency suggests that an improvement in technical, cost or profit
 efficiency contributes to the market value of a bank. Thus, the
 shareholder wealth maximization goal is aligned with the goal of
 maximizing bank efficiency in the Australian context. 
Journal: Applied Economics 
Pages: 3563-3572 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577027 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577027 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3563-3572




Template-Type: ReDIF-Article 1.0
Author-Name: David   M. Zimmer 
Author-X-Name-First: David   M. 
Author-X-Name-Last: Zimmer 
Author-Name: H. Youn Kim 
Author-X-Name-First: H. 
Author-X-Name-Last: Youn Kim 
Title: The dependence structure of income distribution 
Abstract:
  This article investigates the dependence structure of income distribution
 in the US by providing two approaches -- one regression-based and the
 other copula-based -- to reveal new information about income dependence.
 The system of Seemingly Unrelated Regressions (SUR) is estimated for both
 quintile income shares and mean income growth by controlling for
 macroeconomic variables, and Kendall's tau statistics are derived for
 income dependence. Results from less restrictive copula models corroborate
 the regression-based results. However, income growth models do not support
 the common claim that the rich are getting richer while the poor are
 getting poorer. Income dependence patterns do not appear to be affected by
 business cycles, but Democratic and Republican presidential
 administrations have drastically different income dependence results. 
Journal: Applied Economics 
Pages: 3573-3583 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.577028 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577028 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3573-3583




Template-Type: ReDIF-Article 1.0
Author-Name: F. Bouvet 
Author-X-Name-First: F. 
Author-X-Name-Last: Bouvet 
Title: The Beveridge curve in Europe: new evidence using national and regional data 
Abstract:
  The Beveridge curve depicts the empirical negative relationship between
 job vacancy rate and unemployment rate, and reflects the efficiency of the
 job matching process. Movements along a fixed downward sloping Beveridge
 curve are associated with cyclical shocks, while shifts of the curve arise
 from structural factors that alter the matching efficiency between job
 vacancies and unemployed workers. National and regional data on job
 vacancies and unemployment are combined to estimate the Beveridge curves
 of five European countries and their regions, focusing on the period 1975
 to 2004. I also analyse whether shifts in European Beveridge curves are
 due to changes in the composition of the unemployed pool, labour market
 rigidities or cyclical and structural shocks. The empirical evidence
 suggests that changes in labour market rigidities, long term unemployment,
 as well as cyclical shocks are responsible for outward shifts in European
 Beveridge curves. I also find evidence of nonlinearities in the relation
 between unemployment and labour market institutions. 
Journal: Applied Economics 
Pages: 3585-3604 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.579062 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579062 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3585-3604




Template-Type: ReDIF-Article 1.0
Author-Name: Pat Obi 
Author-X-Name-First: Pat 
Author-X-Name-Last: Obi 
Author-Name: Job Dubihlela 
Author-X-Name-First: Job 
Author-X-Name-Last: Dubihlela 
Author-Name: Jeong-Gil Choi 
Author-X-Name-First: Jeong-Gil 
Author-X-Name-Last: Choi 
Title: Equity market valuation, systematic risk and monetary policy 
Abstract:
  This study examines the relationship between equity market valuation and
 risk indicators that portend economic downswings. The indicators are
 implied options volatility, Treasury-Eurodollar (TED) spread and exchange
 rate. While implied volatility captures market risk in that it reflects
 the fear factor embedded in the price of an option, TED spread reflects
 the default risk premium that is priced into a key short-term credit
 instrument. Equity markets often show a tendency to reflect the incidence
 of these risk factors. And because they provide valuable information about
 the health of the economy, many have argued that equity market valuation
 be taken into account in the formulation of monetary policy. Results of
 this study not only show a statistically significant inverse relationship
 between the stock market and these risk factors, but also evidence of a
 cointegration. In a variance decomposition of the series, we find that
 equity valuation is a major contributor to the forecast error variances of
 each of the risk indicators, a finding that lends tacit support to the
 argument that risk indicators associated with the equity market be
 considered in monetary policy decisions. 
Journal: Applied Economics 
Pages: 3605-3613 
Issue: 27 
Volume: 44 
Year: 2012 
Month: 9 
X-DOI: 10.1080/00036846.2011.579065 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579065 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:27:p:3605-3613




Template-Type: ReDIF-Article 1.0
Author-Name: Per Engstr&#xF6;m 
Author-X-Name-First: Per 
Author-X-Name-Last: Engstr&#xF6;m 
Author-Name: Per Johansson 
Author-X-Name-First: Per 
Author-X-Name-Last: Johansson 
Title: The medical doctors as gatekeepers in the sickness insurance? 
Abstract:
  Based on a randomized experiment, we estimate effects from notification
 to medical doctors of tighter monitoring of their Medical Certificates
 (MCs). Both the time prescribed by the doctor certificates for sick leave
 (prescribed sick leave) and the impact on the length of the actual
 sickness absence (actual sick leave) is studied. We find no effect on the
 total number of prescribed sick leave days. However, we do find an
 increase in both prescribed and actual sick leave with a 25% work
 inability. We also find that the notification letter causes an increase in
 actual sick leave (i.e. the number of reimbursed sick days). We discuss a
 number of potential explanations for this rather surprising result. 
Journal: Applied Economics 
Pages: 3615-3625 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.579064 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579064 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3615-3625




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Liu 
Author-X-Name-First: Hong 
Author-X-Name-Last: Liu 
Author-Name: Philip Molyneux 
Author-X-Name-First: Philip 
Author-X-Name-Last: Molyneux 
Author-Name: Linh   H. Nguyen 
Author-X-Name-First: Linh   H. 
Author-X-Name-Last: Nguyen 
Title: Competition and risk in South East Asian commercial banking 
Abstract:
  This article investigates the effects of competition on bank risk taking
 behaviour in four South East Asian countries (Indonesia, Malaysia,
 Philippines and Vietnam). Our main finding is that competition does not
 increase bank risk-taking behaviour and the results appear robust to
 different model specifications, estimation approaches and variable
 construction. We also find that concentration is inversely related to bank
 risk whereas regulatory restrictions positively influence bank
 risk-taking. 
Journal: Applied Economics 
Pages: 3627-3644 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.579066 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579066 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3627-3644




Template-Type: ReDIF-Article 1.0
Author-Name: Alfonso Alba 
Author-X-Name-First: Alfonso 
Author-X-Name-Last: Alba 
Author-Name: Jose   Maria Arranz 
Author-X-Name-First: Jose   Maria 
Author-X-Name-Last: Arranz 
Author-Name: Fernando Mu&#xF1;oz-Bull&#xF3;n 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Mu&#xF1;oz-Bull&#xF3;n 
Title: Re-employment probabilities of unemployment benefit recipients 
Abstract:
  This article studies transitions out of unemployment for benefit
 recipients in Spain. We analyse the duration of unemployment,
 distinguishing between spells that end in recall (workers returning to the
 previous employer) and spells that end in exit to a new job. This
 distinction allows us to find that the recall hazard rate increases around
 the time of exhaustion of benefits. However, this happens only for workers
 receiving Unemployment Insurance (UI). Because we are unable to replicate
 this result for workers receiving Unemployment Assistance (UA), we believe
 the finding lends support to the hypothesis that in Spain firms and
 workers make a strategic use of UI. 
Journal: Applied Economics 
Pages: 3645-3664 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.579067 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579067 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3645-3664




Template-Type: ReDIF-Article 1.0
Author-Name: Miguel G&#xF3;mez-Antonio 
Author-X-Name-First: Miguel 
Author-X-Name-Last: G&#xF3;mez-Antonio 
Author-Name: Bernard Fingleton 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Fingleton 
Title: Regional productivity variation and the impact of public capital stock: an analysis with spatial interaction, with reference to Spain 
Abstract:
  In this article, we examine whether variations in the level of public
 capital across Spain's Provinces affected productivity levels over the
 period 1996 to 2005. The analysis is motivated by contemporary urban
 economics theory, involving a production function for the competitive
 sector of the economy (&#x2018;industry&#x2019;) which includes the level
 of composite services derived from &#x2018;service&#x2019; firms under
 monopolistic competition. The outcome is potentially increasing returns to
 scale resulting from pecuniary externalities deriving from internal
 increasing returns in the monopolistic competition sector. We extend the
 production function by also making (log) labour efficiency a function of
 (log) total public capital stock and (log) human capital stock, leading to
 a simple and empirically tractable reduced form linking productivity level
 to density of employment, human capital and public capital stock. The
 model is further extended to include technological externalities or
 spillovers across provinces. Using panel data methodology, we find
 significant elasticities for total capital stock and for human capital
 stock, and a significant impact for employment density. The finding that
 the effect of public capital is significantly different from zero,
 indicating that it has a direct effect even after controlling for
 employment density, is contrary to some of the earlier research findings
 which leave the question of the impact of public capital unresolved. 
Journal: Applied Economics 
Pages: 3665-3677 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.579068 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579068 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3665-3677




Template-Type: ReDIF-Article 1.0
Author-Name: Kristof De Witte 
Author-X-Name-First: Kristof 
Author-X-Name-Last: De Witte 
Author-Name: Chris Van Klaveren 
Author-X-Name-First: Chris 
Author-X-Name-Last: Van Klaveren 
Title: Comparing students by a matching analysis -- on early school leaving in Dutch cities 
Abstract:
  In case of regional discretionary on the implementation of policy
 measures, central governments often consider differences in outcomes as an
 indication that one policy was more effective than another policy. If
 uniform incentives are provided to motivate regional policy makers, these
 incentives can be discouraging when the underlying populations differ.
 Empirically, this study compares early school leaving between the four
 largest Dutch cities. It shows that considering regional differences as
 performance measures can be dangerous if differences in population
 characteristics are not properly taken into account. Methodologically,
 this study contrasts the use of a traditional probit model with a more
 advanced iterative matching procedure. 
Journal: Applied Economics 
Pages: 3679-3690 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.579069 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579069 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3679-3690




Template-Type: ReDIF-Article 1.0
Author-Name: W.   Allard Bruinshoofd 
Author-X-Name-First: W.   Allard 
Author-X-Name-Last: Bruinshoofd 
Author-Name: Leo de Haan 
Author-X-Name-First: Leo 
Author-X-Name-Last: de Haan 
Title: Market timing and corporate capital structure: a transatlantic comparison 
Abstract:
  This article provides comparative international evidence on the effect of
 market timing on corporate capital structures using panel data for US, UK
 and continental European firms. We document that the empirical regularity
 found for US firms, that historical market-to-book ratios and corporate
 leverage correlate negatively does not extend to UK and continental
 European firms. The latter tend to raise debt rather than equity when
 stock prices are high, thus sticking more closely to a pecking order in
 which debt is preferred over external equity. 
Journal: Applied Economics 
Pages: 3691-3703 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581211 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581211 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3691-3703




Template-Type: ReDIF-Article 1.0
Author-Name: Jos魍ar𨁍ontero-Lorenzo 
Author-X-Name-First: Jos魍ar𨀍
Author-X-Name-Last: Montero-Lorenzo 
Author-Name: Beatriz Larraz-Iribas 
Author-X-Name-First: Beatriz 
Author-X-Name-Last: Larraz-Iribas 
Title: Space-time approach to commercial property prices valuation 
Abstract:
  There exists three ways of approaching real estate prices: the cost
 approach, the market data approach and the income capitalization approach.
 In this article, we propose an improvement of the market data approach
 that takes into account the spatial component. In particular, we propose a
 modified market data approach based on interpolation, being the structure
 of the spatial correlation between the prices of properties the main
 factor to obtain the weights. Interpolation methods have been widely used
 for estimating real estate prices, but they do not take into account the
 structure of their spatial dependence. Although this drawback is overcome
 by kriged estimation, in the case of the prices of commercial properties,
 they do not provide good estimates because the scarceness of the market
 information. This is why auxiliary information is needed and cokriging
 methods are used to obtain estimates that are more accurate. The aim of
 this article is the comparison of cokriged estimation of premises prices
 in two different temporal moments in the emblematic old part of Toledo
 city (Spain), using housing prices as an auxiliary random function due to
 their strong correlation with the main one. Cokriging, kriging and inverse
 distance weighting results are compared. 
Journal: Applied Economics 
Pages: 3705-3715 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581212 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581212 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3705-3715




Template-Type: ReDIF-Article 1.0
Author-Name: Bettina Fincke 
Author-X-Name-First: Bettina 
Author-X-Name-Last: Fincke 
Author-Name: Alfred Greiner 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Greiner 
Title: How to assess debt sustainability? Some theory and empirical evidence for selected euro area countries 
Abstract:
  In this article we elaborate on the test proposed by Bohn (1998) that
 suggests to study whether the primary surplus relative to Gross Domestic
 Product (GDP) is a positive function of the public debt to GDP ratio in
 order to detect whether debt policies are sustainable. We argue that this
 should be complemented by additional tests for countries with rising debt
 to GDP ratios. We, then, apply that test to some countries of the euro
 area. In addition, we perform stationarity tests with respect to the real
 deficit inclusive of interest payments in order to gain additional
 insight. We conclude that there is empirical evidence that the chosen
 paths of fiscal policies are sustainable for the countries we consider,
 although there are country specific differences in debt policies. 
Journal: Applied Economics 
Pages: 3717-3724 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581213 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581213 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3717-3724




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Malcolm 
Author-X-Name-First: Michael 
Author-X-Name-Last: Malcolm 
Title: Can buy me love: the effect of child welfare expenditures on maltreatment outcomes 
Abstract:
  I consider the effect of state level child welfare expenditures on child
 abuse victimization and fatality rates. The main result is that these
 expenditures are strongly associated with improved child maltreatment
 outcomes. Further, the well known negative association between income and
 child abuse is overstated if one fails to control for relevant policy
 differences that are correlated with economic circumstances. The effect of
 income diminishes further upon controlling for social attitudes correlated
 with income. The source of identification is a set of large and explicitly
 exogenous changes in child welfare expenditures induced by the
 <italic>circa</italic> 2000 recession. I show that endogeneity problems
 are small and tend to work against the result. 
Journal: Applied Economics 
Pages: 3725-3736 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581214 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581214 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3725-3736




Template-Type: ReDIF-Article 1.0
Author-Name: Ismat   Ara Begum 
Author-X-Name-First: Ismat   Ara 
Author-X-Name-Last: Begum 
Author-Name: Mohammad   Jahangir Alam 
Author-X-Name-First: Mohammad   Jahangir 
Author-X-Name-Last: Alam 
Author-Name: Jeroen Buysse 
Author-X-Name-First: Jeroen 
Author-X-Name-Last: Buysse 
Author-Name: Aymen Frija 
Author-X-Name-First: Aymen 
Author-X-Name-Last: Frija 
Author-Name: Guido Van Huylenbroeck 
Author-X-Name-First: Guido 
Author-X-Name-Last: Van Huylenbroeck 
Title: Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis 
Abstract:
  The objective of this article is to determine the efficiency of the
 poultry farm in Bangladesh and to assess the influence of contract farming
 system, using a data envelopment analysis. Seventy-five commercial poultry
 farms (25 and 50 independent and contract farms, respectively) were
 randomly selected. The results reveal that efficiency scores vary across
 sample farms. To explain some of these variations, the efficiency scores
 were regressed on some human capital variables and farming system using a
 Tobit model. The study also estimates elasticities to provide the
 information on the magnitude of the influence of variables on Technical
 Efficiency (TE), Allocative Efficiency (AE) and Economic Efficiency (EE).
 The results show that the contracting system is positively and
 significantly related to the farm's TE, AE and EE. This is expected
 because under contractual agreement, in order to obtain sufficient
 supplies of the right quality of poultry meat at the right time, the
 company provides technical know how assistance through company's recruited
 supervisor, production inputs and services, and production credit along
 with intensive supervision, which in turn improves farm efficiency. Thus,
 by receiving technical know how contract farmers have gained more
 knowledge on their resource and practices, which enables them to use
 resources more efficiently. Empirical results can provide crucial
 information to policy makers that improve poultry farm efficiency. 
Journal: Applied Economics 
Pages: 3737-3747 
Issue: 28 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581216 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581216 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:28:p:3737-3747




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Zschille 
Author-X-Name-First: Michael 
Author-X-Name-Last: Zschille 
Author-Name: Matthias Walter 
Author-X-Name-First: Matthias 
Author-X-Name-Last: Walter 
Title: The performance of German water utilities: a (semi)-parametric analysis 
Abstract:
  Germany's water supply industry is characterized by a multitude of
 utilities and widely diverging prices, possibly resulting from structural
 differences beyond the control of firms&#x2019; management, but also from
 inefficiencies. In this article, we use Data Envelopment Analysis and
 Stochastic Frontier Analysis to determine the utilities&#x2019; Technical
 Efficiency (TE) scores based on cross-sectional data from 373 public and
 private water utilities in 2006. We find large differences in TE scores
 even after accounting for significant structural variables like network
 density, share of groundwater usage and water losses. 
Journal: Applied Economics 
Pages: 3749-3764 
Issue: 29 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581215 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581215 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:29:p:3749-3764




Template-Type: ReDIF-Article 1.0
Author-Name: Dongxu Wu 
Author-X-Name-First: Dongxu 
Author-X-Name-Last: Wu 
Author-Name: Zhongmin Wu 
Author-X-Name-First: Zhongmin 
Author-X-Name-Last: Wu 
Title: Crime, inequality and unemployment in England and Wales 
Abstract:
  A model of crime is developed based on principles from the existing
 literature with some original insight. The implications of the model are
 that income inequality and unemployment are important explanatory
 variables for crimes motivated by economic gain, but do not offer much
 explanatory power for other types of crime. Panel data of UK regions over
 the years from 2002 to 2007 are then used to test these predictions. The
 empirical results strongly support the hypothesis that crime is an
 economic phenomenon. 
Journal: Applied Economics 
Pages: 3765-3775 
Issue: 29 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581217 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581217 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:29:p:3765-3775




Template-Type: ReDIF-Article 1.0
Author-Name: H. Corrales-Herrero 
Author-X-Name-First: H. 
Author-X-Name-Last: Corrales-Herrero 
Author-Name: B. Rodr򍑥z-Prado 
Author-X-Name-First: B. 
Author-X-Name-Last: Rodr򍑥z-Prado 
Title: Characterizing Spanish labour pathways of young people with vocational lower-secondary education 
Abstract:
  School-to-work transition is no longer considered to take place at one
 point but it is seen as a sequential process with multiple stages that
 extend over a relatively long period in which individuals gradually settle
 down into the labour market. This article constructs and examines the
 labour pathways followed by Spanish young people who have completed
 vocational lower secondary education. To do so, we use the Survey on
 Educational-Training Transition and Labour Integration, a retrospective
 longitudinal dataset that contains monthly calendar information about the
 labour states in the 4 years after completing vocational education. A wide
 range of states is covered: part-time employment, full-time employment,
 unemployment and several situations of inactivity. To examine young labour
 pathways we use sequence analysis, an exploratory technique which allows
 us to obtain a measure of dissimilarity between sequences. Later, a
 cluster analysis is applied that allow us to identify seven patterns of
 transition into the labour market. Nevertheless, most trajectories may be
 classified as linear, with a successful integration into the labour
 market. A multinomial logit model confirms that demographic and
 educational variables are relevant to explain the pathways followed by
 young people. 
Journal: Applied Economics 
Pages: 3777-3792 
Issue: 29 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581218 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581218 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:29:p:3777-3792




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Grad󸀍
Author-X-Name-First: Carlos 
Author-X-Name-Last: Grad󸀍
Title: Poverty among minorities in the United States: explaining the racial poverty gap for Blacks and Latinos 
Abstract:
  The two largest minorities in the United States, African Americans and
 people of Hispanic origin, show official poverty rates at least twice as
 high as those of non-Hispanic Whites. These similarly high poverty rates
 between the two minorities are, however, the result of different
 combinations of factors related to the specific characteristics of these
 two groups. In this article, we analyse the role of demographic and
 labour-related variables in the current differential of poverty rates
 among racial and ethnic groups in the United States and its recent
 evolution. Our results show, first, that these differentials are largely
 explained by differing family characteristics of the ethnic groups.
 Furthermore, we show that while labour market activity of family members
 and a preponderance of single mothers play a more significant role in the
 higher poverty rates of Blacks, a larger number of dependent children is
 closely associated with higher poverty among Latinos, who also suffer from
 a larger educational attainment gap and higher immigration rates. 
Journal: Applied Economics 
Pages: 3793-3804 
Issue: 29 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581219 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581219 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:29:p:3793-3804




Template-Type: ReDIF-Article 1.0
Author-Name: Maman Setiawan 
Author-X-Name-First: Maman 
Author-X-Name-Last: Setiawan 
Author-Name: Grigorios Emvalomatis 
Author-X-Name-First: Grigorios 
Author-X-Name-Last: Emvalomatis 
Author-Name: Alfons   Oude Lansink 
Author-X-Name-First: Alfons   Oude 
Author-X-Name-Last: Lansink 
Title: Industrial concentration and price-cost margin of the Indonesian food and beverages sector 
Abstract:
  This article investigates trends in industrial concentration and its
 relationship with the price-cost margin in 54 subsectors of the Indonesian
 food and beverages sector in the period 1995 to 2006. This study uses
 firm-level survey data provided by the Indonesian Bureau of Central
 Statistics (BPS), classified at the five-digit International Standard
 Industrial Classification (ISIC) Level. The results show a significant
 increase in industrial concentration in 1995 to 1999, which coincided with
 the period of the economic crisis in Indonesia. After 1999, the industrial
 concentration exhibits a slightly decreasing long-term trend. Furthermore,
 the industrial concentration for all subsectors tends to converge to the
 same value in the long run. Additionally, results show that higher
 industrial concentration yields a higher price-cost margin. Finally, the
 introduction of the competition law in 1999 has slightly lowered
 industrial concentration and the price-cost margin. 
Journal: Applied Economics 
Pages: 3805-3814 
Issue: 29 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581220 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581220 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:29:p:3805-3814




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou 
Author-X-Name-First: Chris 
Author-X-Name-Last: Sakellariou 
Title: Unconditional quantile regressions, wage growth and inequality in the Philippines, 2001--2006: the contribution of covariates 
Abstract:
  I implement a two-stage procedure to estimate the components of real wage
 change in the Philippines along the wage distribution from 2001 to 2006,
 as well as the contribution of individual covariates to each component.
 The methodology is based on Re-centred Influence Functions (RIF), as
 suggested by Firpo <italic>et&#xA0;al</italic>. (2009). The advantage of
 this methodology is that it not only decomposes the unconditional wage
 change at any quantile of the wage distribution, but also allows the
 characterization of the contribution of any single covariate on each
 component. I find that real earnings of males in the Philippines declined
 and the decline along the earnings distribution is generally higher at
 higher deciles for all males and higher at lower deciles in Manila.
 Decomposition results are driven by the wage structure component, while
 the composition effect is small and generally positive with education as
 the main contributor. Within the wage structure effect, the main
 determinants are associated with changes in the rewards of experience and
 occupation, along with residual change (change in intercepts). 
Journal: Applied Economics 
Pages: 3815-3830 
Issue: 29 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581221 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581221 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:29:p:3815-3830




Template-Type: ReDIF-Article 1.0
Author-Name: Hossein Kavand 
Author-X-Name-First: Hossein 
Author-X-Name-Last: Kavand 
Author-Name: J.   Stephen Ferris 
Author-X-Name-First: J.   Stephen 
Author-X-Name-Last: Ferris 
Title: The inflationary effects of stochastic resource revenues in resource-rich economies with less well-developed financial markets 
Abstract:
  This article develops a simple Dynamic Stochastic General Equilibrium
 (DSGE) model to illustrate how economies that face restrictions in their
 ability to alter both government spending and taxation in the short run
 and cannot borrow easily (perhaps because of incomplete internal capital
 markets) can find external fluctuations in resource revenues producing
 unexpected variations in their internal money supply and ultimately in
 their inflation rate. The main channels for these effects run through the
 government budget and through the country's balance of payments position.
 The model is calibrated to illustrate the case of Iran. 
Journal: Applied Economics 
Pages: 3831-3840 
Issue: 29 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581222 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581222 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:29:p:3831-3840




Template-Type: ReDIF-Article 1.0
Author-Name: Mala Raghavan 
Author-X-Name-First: Mala 
Author-X-Name-Last: Raghavan 
Author-Name: Paramsothy Silvapulle 
Author-X-Name-First: Paramsothy 
Author-X-Name-Last: Silvapulle 
Author-Name: George Athanasopoulos 
Author-X-Name-First: George 
Author-X-Name-Last: Athanasopoulos 
Title: Structural VAR models for Malaysian monetary policy analysis during the pre- and post-1997 Asian crisis periods 
Abstract:
  This article conducts an in-depth investigation into building a
 Structural Vector Autoregression (SVAR) model and analysing the Malaysian
 monetary policy. Considerable attention is paid to: (i) the selection of
 foreign, policy and target variables; (ii) establish identifying
 restrictions and improve the estimates of impulse response functions;
 (iii) assess the importance of intermediate channels in transmitting
 monetary policy mechanism; and (iv) the way in which the 1997 Asian
 financial crisis affected the working of monetary policy. Malaysia is an
 interesting small open economy to study because, following this crisis,
 the government imposed capital and exchange rate control measures. The
 overall results suggest that the crisis and the subsequent major shift in
 the exchange rate regime have significantly affected the Malaysian
 &#x2018;Black Box&#x2019;. In the pre-crisis period, domestic variables
 appear to be more vulnerable to foreign monetary shocks. Further, the
 exchange rate played a significant role in transmitting the interest rate
 shocks, whereas credit and asset prices helped to propagate the money
 shock. In the post-crisis period however, asset prices play a more
 domineering role in intensifying the effects of both interest rate and
 money shocks on output, and the economy was insulated from foreign shocks. 
Journal: Applied Economics 
Pages: 3841-3856 
Issue: 29 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.581360 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581360 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:29:p:3841-3856




Template-Type: ReDIF-Article 1.0
Author-Name: M. J. Aziakpono 
Author-X-Name-First: M. J. 
Author-X-Name-Last: Aziakpono 
Author-Name: S. Kleimeier 
Author-X-Name-First: S. 
Author-X-Name-Last: Kleimeier 
Author-Name: H. Sander 
Author-X-Name-First: H. 
Author-X-Name-Last: Sander 
Title: Banking market integration in the SADC countries: evidence from interest rate analyses 
Abstract:
  This study investigates the state, development and drivers of banking
 market integration in the member countries of the Southern African
 Development Community (SADC). A Principal Component Analysis (PCA) of
 national retail interest rates indicates increasing integration in loan
 and deposit markets. These integration processes are not developing
 uniformly and we can identify a convergence club. When investigating the
 interest rate pass-through from central bank onto retail rates for this
 convergence club, we find both, genuine and monetary-integration driven
 processes though the latter dominate. We thus conclude that a selective
 expansion of the Common Monetary Area (CMA) is possible. 
Journal: Applied Economics 
Pages: 3857-3876 
Issue: 29 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.583219 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583219 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:29:p:3857-3876




Template-Type: ReDIF-Article 1.0
Author-Name: Zein Kallas 
Author-X-Name-First: Zein 
Author-X-Name-Last: Kallas 
Author-Name: Teresa Serra 
Author-X-Name-First: Teresa 
Author-X-Name-Last: Serra 
Author-Name: Jos頠 M. Gil 
Author-X-Name-First: Jos頠 M. 
Author-X-Name-Last: Gil 
Title: Effects of policy instruments on farm investments and production decisions in the Spanish COP sector 
Abstract:
  Our article assesses the impacts regarding on-farm investment and
 production decisions resulting from the Partially Decoupled (PD) payment
 scheme implemented during the 1990s and first half of the 2000s within the
 framework of the Common Agricultural Policy (CAP). The Spanish Cereal,
 Oilseed and Protein (COP) sector is taken as a case study regarding this
 effect due to its economic and political relevance in Spain. The empirical
 analysis is applied to farm-level data from 2000 to 2004 using the Farm
 Accountancy Data Network (FADN). We use a reduced-form application of the
 dual model of investment under uncertainty and estimate a system of
 censored and uncensored equations. PD payments are found to increase
 short-run production and generate a statically significant increase in the
 investment in farm assets. Results also show the importance of assessing
 the effects of PD payments in a dynamic framework as applied in this
 article. 
Journal: Applied Economics 
Pages: 3877-3886 
Issue: 30 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.583220 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583220 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:30:p:3877-3886




Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh 
Author-X-Name-First: Tarlok 
Author-X-Name-Last: Singh 
Title: Testing nonlinearities in economic growth in the OECD countries: an evidence from SETAR and STAR models 
Abstract:
  This study estimates the Self Exciting Threshold Autoregressive (SETAR)
 and Smooth Transition Autoregressive (STAR) models and examines the
 nonlinear and regime switching dynamics of economic growth for a set of 10
 OECD countries. The null of linearity in SETAR model is tested using the
 recursive polynomial <italic>F</italic> test of Tsay and the bootstrap
 based supremum, average and exponential average Lagrange Multiplier (LM)
 tests of Hansen. The <italic>F</italic> test of Tsay rejects the null of
 linearity for all the countries, except Spain and Switzerland. The SETAR
 model of Hansen reinforces the evidence and suggests the rejection of
 linear model. The STAR model rejects the null of linearity against STAR
 nonlinearity for all the countries, except Denmark and Switzerland. The
 sequential <italic>F</italic> tests for the conditional nulls suggest the
 LSTAR nonlinearity for Australia, Belgium, France, Sweden and UK, and the
 ESTAR nonlinearity for Canada, Spain and the USA. 
Journal: Applied Economics 
Pages: 3887-3908 
Issue: 30 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.583221 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583221 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:30:p:3887-3908




Template-Type: ReDIF-Article 1.0
Author-Name: Ekaterini Panopoulou 
Author-X-Name-First: Ekaterini 
Author-X-Name-Last: Panopoulou 
Author-Name: Theologos Pantelidis 
Author-X-Name-First: Theologos 
Author-X-Name-Last: Pantelidis 
Title: Convergence in per capita health expenditures and health outcomes in the OECD countries 
Abstract:
  Our analysis of 19 Organization for Economic Co-operation and Development
 (OECD) countries over the period 1972 to 2006 provides evidence of
 convergence in per capita health care expenditures for 17 countries, while
 the US and (to a lesser degree) Norway follow a different path. A simple
 decomposition of per capita health expenditures reveals that the
 divergence of the US comes from the divergence of the &#x2018;ratio of
 health care expenditures to Gross Domestic Product (GDP)&#x2019;
 component, while Norway's divergence is mainly caused by the
 &#x2018;labour productivity&#x2019; component. Interestingly, our results
 suggest that convergence in per capita health expenditures among the 17
 OECD countries does not lead to convergence in health outcomes. Finally,
 we extend our analysis to examine convergence in various determinants of
 health expenditures. 
Journal: Applied Economics 
Pages: 3909-3920 
Issue: 30 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.583222 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583222 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:30:p:3909-3920




Template-Type: ReDIF-Article 1.0
Author-Name: Steven   T. Yen 
Author-X-Name-First: Steven   T. 
Author-X-Name-Last: Yen 
Title: Gender differences, physical activity and body weight 
Abstract:
  We investigate the effect of physical activity on bodyweight and the
 gender differences in such effects, following the copula approach to
 endogenous switching regression. Using data from the 2006 Behavioral Risk
 Factor Surveillance System (BRFSS), we find differentiated effects of
 socio-demographic variables on exercise and on Body Mass Indexes (BMIs),
 and differentiated effects of exercise on BMI, between genders. Regular
 exercise, on average, decreases BMI by 1.78 for women and 1.01 for men.
 Food price away from home has negative effects on BMI of both men and
 women. 
Journal: Applied Economics 
Pages: 3921-3934 
Issue: 30 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.583223 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583223 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:30:p:3921-3934




Template-Type: ReDIF-Article 1.0
Author-Name: Juan G&#xF3;mez-Garc𨀍
Author-X-Name-First: Juan 
Author-X-Name-Last: G&#xF3;mez-Garc𨀍
Author-Name: Mar𨀠 del Rocio Moreno Enguix 
Author-X-Name-First: Mar𨀠 del Rocio Moreno 
Author-X-Name-Last: Enguix 
Author-Name: Juan   C&#xE1;ndido G&#xF3;mez-Gallego 
Author-X-Name-First: Juan   C&#xE1;ndido 
Author-X-Name-Last: G&#xF3;mez-Gallego 
Title: Estimation of the efficiency of structural funds: a parametric and nonparametric approach 
Abstract:
  This article seeks to perform an analysis of the efficiency of the
 application of the structural funds in the regions classified as Objective
 1 over the period 2000 to 2006, applying the techniques known as Data
 Envelopment Analysis (DEA) and stochastic frontier. In the first place, we
 are going to identify which are the most efficient regions. Finally, we
 will analyse the extent to which certain factors have repercussions on the
 efficiency such as country, geographical location and contribution of
 agriculture of Gross Domestic Product (GDP) and the result indicates that
 some of these variables have significantly influences of technical
 efficiency. 
Journal: Applied Economics 
Pages: 3935-3954 
Issue: 30 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.583224 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583224 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:30:p:3935-3954




Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Sanso-Navarro 
Author-X-Name-First: Marcos 
Author-X-Name-Last: Sanso-Navarro 
Title: Broken trend stationarity of hours worked 
Abstract:
  The estimated impact of a technology shock on hours worked using
 Structural Vector Autoregressions (SVARs) depends to a great extent on
 whether or not hours worked is considered to be integrated of first order.
 It is shown in this article that the widely analysed time series of hours
 worked per capita in the US business sector evolves around a broken linear
 trend. When this fact is taken into account, the unit root null is
 rejected by recently proposed tests. Therefore, it can be stated that
 empirical specifications with hours in first differences are not
 recommended. It seems more appropriate to control for the presence of this
 shift in the deterministic component. We also draw this conclusion from a
 bivariate model for both productivity growth and hours worked. Our results
 suggest that technology improvements have a negative but nonsignificant
 effect on hours only in the very short run. This impact later becomes
 positive and statistically significant after five periods. 
Journal: Applied Economics 
Pages: 3955-3964 
Issue: 30 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.583225 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583225 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:30:p:3955-3964




Template-Type: ReDIF-Article 1.0
Author-Name: Akhter Faroque 
Author-X-Name-First: Akhter 
Author-X-Name-Last: Faroque 
Author-Name: William Veloce 
Author-X-Name-First: William 
Author-X-Name-Last: Veloce 
Author-Name: Jean-Francois Lamarche 
Author-X-Name-First: Jean-Francois 
Author-X-Name-Last: Lamarche 
Title: Have structural changes eliminated the out-of-sample ability of financial variables to forecast real activity after the mid-1980s? Evidence from the Canadian economy 
Abstract:
  This article evaluates how consistently reliable the information content
 of individual financial variables is for Canada's future output growth. We
 estimate the timing of structural changes in linear growth models and
 check robustness to specification changes, multiple breaks, and business
 cycle asymmetry. Our simulated out-of-sample forecast evaluation strategy,
 using the Mean Square Error F-type (MSE-F) and the new encompassing
 (ENC-NEW) tests, shows that the leading information content of most
 financial variables for Canada's future Gross Domestic Product (GDP)
 growth has deteriorated substantially after 1984:04, but the 1--3-year
 term spread exhibits a consistently reliable predictive ability at the 1
 and 2 quarter horizons and has significant forecasting ability at the 8
 quarter horizon. Also, the real M1 money growth has regained its ability
 to forecast output growth since 1991:01. 
Journal: Applied Economics 
Pages: 3965-3985 
Issue: 30 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.583226 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583226 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:30:p:3965-3985




Template-Type: ReDIF-Article 1.0
Author-Name: Ramo Barrena 
Author-X-Name-First: Ramo 
Author-X-Name-Last: Barrena 
Author-Name: Mercedes S&#xE1;nchez 
Author-X-Name-First: Mercedes 
Author-X-Name-Last: S&#xE1;nchez 
Title: Abstraction and product categories as explanatory variables for food consumption 
Abstract:
  This study sets out to explore variation in the consumer choice structure
 in relation to three types of products with different levels of search,
 experience and credence attributes. The decision structures of rice, wine
 and functional food (experience, search and credence products) consumers
 were explored by means of laddering. The results suggest the presence of
 an emotional component in foods that increases in complexity (becomes more
 abstract) with the number of credence attributes. The findings recommend
 adjusting the complexity of advertising campaigns and product positioning
 to the type of product being promoted. 
Journal: Applied Economics 
Pages: 3987-4003 
Issue: 30 
Volume: 44 
Year: 2012 
Month: 10 
X-DOI: 10.1080/00036846.2011.583227 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583227 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:30:p:3987-4003




Template-Type: ReDIF-Article 1.0
Author-Name: Tatiane   Almeida de Menezes 
Author-X-Name-First: Tatiane   Almeida 
Author-X-Name-Last: de Menezes 
Author-Name: Marie-Gabrielle Piketty 
Author-X-Name-First: Marie-Gabrielle 
Author-X-Name-Last: Piketty 
Title: Towards a better estimation of agricultural supply elasticity: the case of soya beans in Brazil 
Abstract:
  Brazil is a major exporter of several agricultural commodities and has
 shown strong interest in agricultural trade negotiations. For several
 commodities, trade liberalization is expected to be followed by farmgate
 prices increase and to boost domestic production. However, in a country as
 big as Brazil, possible supply responses to price increase will probably
 strongly differ from one region to another. This article focuses on soya
 beans for which Brazil became a top exporter. The panel data technique is
 used to estimate the soy bean supply response at national and regional
 level. Soya bean supply is shown to be very price elastic. Moreover, soya
 bean supply own price elasticity is much higher in the Center-North
 regions than in the South of the country. Substitution between livestock
 and soya bean is also very significant in the Center-North region. World
 agricultural trade models should take account for such regional
 variability of soya bean supply elasticity. The results also allow us to
 discuss the issue of soya bean expansion at the Amazon border. 
Journal: Applied Economics 
Pages: 4005-4018 
Issue: 31 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587773 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587773 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:31:p:4005-4018




Template-Type: ReDIF-Article 1.0
Author-Name: Weiping Kostenko 
Author-X-Name-First: Weiping 
Author-X-Name-Last: Kostenko 
Author-Name: Mark Harris 
Author-X-Name-First: Mark 
Author-X-Name-Last: Harris 
Author-Name: Xueyan Zhao 
Author-X-Name-First: Xueyan 
Author-X-Name-Last: Zhao 
Title: Occupational transition and country-of-origin effects in the early stage occupational assimilation of immigrants: some evidence from Australia 
Abstract:
  We examine the occupational attainment of recent immigrants at 2 years
 post migration in order to study their early stage assimilation into the
 labour market in Australia. Human capital endowments and country-of-origin
 effects are examined for six occupational groups. We also study
 transitions across occupations from source to host country. The empirical
 approach utilizes the Ordered Generalized Extreme Value (OGEV) model which
 embodies differing utility functions across occupational outcomes, as well
 as accounting for any ordering in these outcomes. The results suggest that
 the transferability of knowledge and skills is affected by cultural and
 social backgrounds, and that non-Western immigrants are disproportionately
 channelled into inferior jobs post migration. The investigation of the
 country-of-origin effect on the skilled migrants&#x2019; occupational
 transition process is especially apt in the context of skill shortages in
 many host countries. 
Journal: Applied Economics 
Pages: 4019-4035 
Issue: 31 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587774 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587774 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:31:p:4019-4035




Template-Type: ReDIF-Article 1.0
Author-Name: D B&#xFC;ttner 
Author-X-Name-First: D 
Author-X-Name-Last: B&#xFC;ttner 
Author-Name: B. Hayo 
Author-X-Name-First: B. 
Author-X-Name-Last: Hayo 
Title: EMU-related news and financial markets in the Czech Republic, Hungary and Poland 
Abstract:
  We analyse the impact of news on five financial markets in the Czech
 Republic, Hungary and Poland using a newly constructed data set in a
 Generalized Autoregressive Conditional Heteroscedastic (GARCH) framework.
 Macroeconomic shocks (on Gross Domestic Product (GDP), inflation rate,
 current account and trade balance) are constructed as deviations from
 expected values. Economic and Monetary Union (EMU)-related political and
 fiscal news is captured as news dummies. Macroeconomic shocks
 significantly affect short-term interest rates and, to a lesser extent,
 other financial variables. Political and fiscal news has an impact on
 long-term bond yields and exchange rates. News displayed prominently in
 our media sources has a greater impact on financial markets than other
 news and, in addition, the sources of news themselves matter. We also
 discover asymmetric effects of news within markets. Finally, using a
 pooled GARCH model we find that macroeconomic shocks have the strongest
 impact on financial markets in Hungary, while political news has the
 largest influence in both Hungary and Poland. 
Journal: Applied Economics 
Pages: 4037-4053 
Issue: 31 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587775 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587775 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:31:p:4037-4053




Template-Type: ReDIF-Article 1.0
Author-Name: Emil Stavrev 
Author-X-Name-First: Emil 
Author-X-Name-Last: Stavrev 
Author-Name: Helge Berger 
Author-X-Name-First: Helge 
Author-X-Name-Last: Berger 
Title: The information content of money in forecasting euro area inflation 
Abstract:
  This article contributes to the debate on the role of money in monetary
 policy by analysing the information content of money in forecasting
 euro-area inflation. We compare the predictive performance within and
 among various classes of structural and empirical models in a consistent
 framework using Bayesian and other estimation techniques. We find that
 money contains relevant information for inflation in some model classes.
 Money-based New Keynesian Dynamic Stochastic General Equilibrium (DSGE)
 models and Vector Autoregressions (VARs) incorporating money perform
 better than their cashless counterparts. But there are also indications
 that the contribution of money has its limits. The marginal contribution
 of money to forecasting accuracy is often small, money adds little to
 dynamic factor models, and it worsens forecasting accuracy of partial
 equilibrium models. Finally, nonmonetary models dominate monetary models
 in an all-out horserace. 
Journal: Applied Economics 
Pages: 4055-4072 
Issue: 31 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587776 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587776 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:31:p:4055-4072




Template-Type: ReDIF-Article 1.0
Author-Name: George   A Vamvoukas 
Author-X-Name-First: George   A 
Author-X-Name-Last: Vamvoukas 
Title: Panel data modelling and the tax-spend controversy in the euro zone 
Abstract:
  This article attempts to differentiate between the debatable tax and
 spend, spend and tax, fiscal synchronization and institutional separation
 hypotheses in order to explore empirically the interplay between public
 expenditures and public revenues in the Economic and Monetary Union (EMU)
 member states. For this purpose, panel data models are derived to test the
 validity of the four hypotheses in EMU countries. A notable characteristic
 of this article is that the four hypotheses are tested by dividing EMU
 countries into various subgroups and using disaggregated data for
 government expenditures and revenues. Seeking for the robustness of the
 empirical evidence, the panel data methods of Generalized Two-Stage Least
 Squares (GTSLS) and Generalized Method of Moments (GMM) are accordingly
 applied to identify the relationship between public outlays and taxation
 receipts. GTSLS and GMM results strongly support the fiscal
 synchronization hypothesis implying that budget decision-making is
 significantly influenced by both government expenditures and revenues
 components. 
Journal: Applied Economics 
Pages: 4073-4085 
Issue: 31 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587777 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587777 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:31:p:4073-4085




Template-Type: ReDIF-Article 1.0
Author-Name: Les Coleman 
Author-X-Name-First: Les 
Author-X-Name-Last: Coleman 
Title: Testing equity market efficiency around terrorist attacks 
Abstract:
  This article uses the nine major bombings since 1998 that have been
 attributed to Al Qaida to examine market efficiency, including a test of
 rumours that investors traded with advance knowledge of attacks. Analysis
 of these related, but individually unexpected, events confirms markets are
 semi-strong efficient: it now takes well under a trading day to fully
 price in a completely unexpected attack. On balance, markets also proved
 strongly efficient with no conclusive evidence of insider trading. 
Journal: Applied Economics 
Pages: 4087-4099 
Issue: 31 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587778 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:31:p:4087-4099




Template-Type: ReDIF-Article 1.0
Author-Name: Marina   Selini Katsaiti 
Author-X-Name-First: Marina   Selini 
Author-X-Name-Last: Katsaiti 
Title: Obesity and happiness 
Abstract:
  This article provides insight on the relationship between individual
 obesity and happiness levels. Using the latest available panel data from
 Germany German Socio-Economic Panel (GSOEP), UK British Household Panel
 Survey (BHPS), and Australia Household, Income and Labour Dynamics in
 Australia (HILDA), we examine whether there is statistical evidence on the
 impact of overweight on subjective well-being. Instrumental Variable (IV)
 analysis is utilized under the presence of endogeneity, stemming from
 several explanatory variables. Results indicate that in all three
 countries obesity has a negative effect on the subjective well-being of
 individuals. The results also have important implications for the effect
 of other socio-demographic, economic and individual characteristics on
 well-being. 
Journal: Applied Economics 
Pages: 4101-4114 
Issue: 31 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587779 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587779 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:31:p:4101-4114




Template-Type: ReDIF-Article 1.0
Author-Name: James   Joseph Fogarty 
Author-X-Name-First: James   Joseph 
Author-X-Name-Last: Fogarty 
Title: Expert opinion and cuisine reputation in the market for restaurant meals 
Abstract:
  As food is an experience good, the market for restaurant meals is a
 market where the cost of acquiring information regarding quality is
 relatively high. In such markets consumers often turn to reputation
 measures to guide purchase decisions. As Australia does not have a
 longstanding cuisine style of its own, and given Australia has been open
 to substantial immigration inflows since federation, it represents an
 especially appropriate market to study regarding the impact of individual
 restaurant reputation and collective cuisine reputation on meal prices.
 The following study uses the hedonic price approach to investigate the
 implicit price of individual reputation indicators, cuisine type
 reputation indicators and other objective indicators in the market for
 restaurant meals. The empirical findings presented suggest that both
 individual restaurant reputation and cuisine type reputation are
 important. Other important factors are shown to include the quality of the
 restaurant wine list, the availability of private dining rooms, and
 whether or not there is an outdoor dining option. 
Journal: Applied Economics 
Pages: 4115-4123 
Issue: 31 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587780 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587780 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:31:p:4115-4123




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno De Borger 
Author-X-Name-First: Bruno 
Author-X-Name-Last: De Borger 
Author-Name: Kristiaan Kerstens 
Author-X-Name-First: Kristiaan 
Author-X-Name-Last: Kerstens 
Author-Name: Diego Prior 
Author-X-Name-First: Diego 
Author-X-Name-Last: Prior 
Author-Name: Ignace Van de Woestyne 
Author-X-Name-First: Ignace 
Author-X-Name-Last: Van de Woestyne 
Title: Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions 
Abstract:
  Starting from existing static decompositions of overall economic
 efficiency on nonparametric production and cost frontiers, this article
 proposes more comprehensive decompositions including several cost-based
 notions of capacity utilization. Furthermore, in case prices are lacking,
 we develop additional decompositions of overall technical efficiency
 integrating a technical concept of capacity utilization. These new
 efficiency decompositions provide a link between short and long run
 economic analysis and, in empirical work, avoid conflating inefficiency
 and differences in capacity utilization. An empirical analysis using a
 monthly panel of Chilean hydro-electric power plants illustrates the
 potential of these decomposition proposals. 
Journal: Applied Economics 
Pages: 4125-4141 
Issue: 31 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587783 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587783 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:31:p:4125-4141




Template-Type: ReDIF-Article 1.0
Author-Name: L. Wei 
Author-X-Name-First: L. 
Author-X-Name-Last: Wei 
Author-Name: J. Xiao 
Author-X-Name-First: J. 
Author-X-Name-Last: Xiao 
Title: Factors affecting the take-off of innovative technologies: evidence from digital cameras 
Abstract:
  While technological innovations are important for many industries,
 take-off sales for innovative products can have long lead times due to a
 variety of factors. This article identifies the main parameters affecting
 digital camera take-off sales in the US between 2001 and 2004. The study
 constructs an empirical model for film and digital camera shipments and
 finds that digital cameras primarily served as a substitute for low-end
 film compacts rather than high-end film Single-Lens Reflex (SLR) cameras.
 Also, growth in household PC ownership and Windows XP market share were
 the main contributing factors to the decline of film cameras, with PC
 penetration rate as the most important factor for digital camera
 diffusion. 
Journal: Applied Economics 
Pages: 4143-4152 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587781 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587781 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4143-4152




Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Pasqua 
Author-X-Name-First: Silvia 
Author-X-Name-Last: Pasqua 
Author-Name: Anna   Laura Mancini 
Author-X-Name-First: Anna   Laura 
Author-X-Name-Last: Mancini 
Title: Asymmetries and interdependencies in time use between Italian parents 
Abstract:
  In recent decades, changes in parents&#x2019; attitudes towards the
 importance of spending time with children to optimize their future
 behaviour and cognitive development have greatly affected patterns of time
 allocation among both working and nonworking parents in all developed
 countries. We compare the two waves of the Italian Time Use dataset (1988
 and 2002) to analyse how family time allocation changed over time in a
 country that was undergoing a marked increase in female employment rate
 and a continuous decline in total fertility rate. We focus especially on
 how parents&#x2019; time with their children depends on their employment
 status and household characteristics. Using a simultaneous sequential
 approach, we consider links among the different time uses of individuals
 and correlations with spouses&#x2019; decisions. We find that
 wives&#x2019; time at work time strongly influences the time spent by both
 spouses with their children in 2002, but not in 1988. Fathers were much
 more involved in childcare and rearing in 2002 than in 1988. In general,
 as women's work time increased, substitutes for their childcare time were
 found within the household (fathers or other co-resident adults). 
Journal: Applied Economics 
Pages: 4153-4171 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587782 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587782 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4153-4171




Template-Type: ReDIF-Article 1.0
Author-Name: Chor Foon Tang 
Author-X-Name-First: Chor Foon 
Author-X-Name-Last: Tang 
Author-Name: Soo   Y. Chua 
Author-X-Name-First: Soo   Y. 
Author-X-Name-Last: Chua 
Title: The savings-growth nexus for the Malaysian economy: a view through rolling sub-samples 
Abstract:
  The purpose of this study is to re-investigate the savings-growth nexus
 for the Malaysian economy using bounds testing approach to cointegration
 and Toda and Yamamoto (1995) and Dolado and L&#xFC;tkepohl (1996) -- TYDL
 Granger causality test. This study covered the sample period from 1971:Q1
 to 2008:Q4. The cointegration results suggest that the variables are
 moving together in the long run and the TYDL Granger causality results
 indicate that the relationship between savings and economic growth is
 bilateral. In addition, the rolling sub-samples TYDL Granger causality
 test exhibited a relatively stable causal relationship running from
 savings to economic growth in Malaysia particularly before the onset of
 Asian Financial Crisis in 1997/1998. 
Journal: Applied Economics 
Pages: 4173-4185 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587784 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587784 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4173-4185




Template-Type: ReDIF-Article 1.0
Author-Name: Jesse Russell 
Author-X-Name-First: Jesse 
Author-X-Name-Last: Russell 
Title: Herding and the shifting determinants of exchange rate regime choice 
Abstract:
  It is difficult to pin down the factors that determine states&#x2019;
 choice of exchange rate regime because those very factors present a moving
 target. Many scholars have taken on the same question: what are the
 determinants of exchange rate regime choice? But as a group they have been
 unable to identify a stable answer. The reason for this is that the
 factors that best predict exchange rate regime vary dramatically across
 time. An explanation for this variation is offered: rational herding, or
 information cascades, can explain why one factor becomes prominent for a
 period of time then suddenly drops off and is replaced by a better
 predictor. 
Journal: Applied Economics 
Pages: 4187-4197 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587785 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587785 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4187-4197




Template-Type: ReDIF-Article 1.0
Author-Name: Ra&#xFA;   l Serrano 
Author-X-Name-First: Ra&#xFA;   l 
Author-X-Name-Last: Serrano 
Author-Name: Vicente Pinilla 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Pinilla 
Title: The long-run decline in the share of agricultural and food products in international trade: a gravity equation approach to its causes 
Abstract:
  The objective of this study is to determine the causes of the loss of
 share of agricultural products and food in international trade. The
 article compares, using a gravity model, the impact of various factors
 upon bilateral trade in agricultural products, in manufactures and in
 total trade, between 1963 and 2000 for a representative sample of 40
 countries. The results clearly demonstrate how the low demand elasticity
 for agricultural products and food, the high degree of protectionism to
 which they were subjected and their meagre share in intra-industrial trade
 are the principal causes of their relatively slow growth. 
Journal: Applied Economics 
Pages: 4199-4210 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587786 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4199-4210




Template-Type: ReDIF-Article 1.0
Author-Name: Jana Vyrastekova 
Author-X-Name-First: Jana 
Author-X-Name-Last: Vyrastekova 
Author-Name: Sander Onderstal 
Author-X-Name-First: Sander 
Author-X-Name-Last: Onderstal 
Author-Name: Pierre Koning 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Koning 
Title: Self-selection and the power of incentive schemes: an experimental study 
Abstract:
  We examine how self-selection of workers depends on the power of
 incentive schemes and how it affects team performance if the power of the
 incentive schemes is increased. In a laboratory experiment, we let
 subjects choose between (low-powered) team incentives and (high-powered)
 individual incentives. We observe that subjects exhibiting high trust or
 reciprocity in the trust game are more likely to choose team incentives.
 When exposed to individual incentives, subjects who chose team incentives
 perform worse if both the unobservable interdependency between their
 efforts and their incentive to cooperate under team incentives are high. 
Journal: Applied Economics 
Pages: 4211-4219 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587787 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587787 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4211-4219




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Ashley 
Author-X-Name-First: Richard 
Author-X-Name-Last: Ashley 
Author-Name: Haichun Ye 
Author-X-Name-First: Haichun 
Author-X-Name-Last: Ye 
Title: On the Granger causality between median inflation and price dispersion 
Abstract:
  The Granger-causal relationship between the size and dispersion of
 fluctuations in sub-components of the US Consumer Price Index (CPI) is
 examined using both in-sample and out-of-sample tests and data from
 January 1968 to December 2008. Strong in-sample evidence is found for
 feedback between median inflation and price dispersion; the evidence for
 Granger-causation from median inflation to price dispersion remains strong
 in out-of-sample testing, but is less strong for Granger-causation in the
 opposite direction. The implications of these results for the variety of
 price-level determination models in the literature are discussed. 
Journal: Applied Economics 
Pages: 4221-4238 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587788 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4221-4238




Template-Type: ReDIF-Article 1.0
Author-Name: A. Tomohara 
Author-X-Name-First: A. 
Author-X-Name-Last: Tomohara 
Author-Name: H. J. Lee 
Author-X-Name-First: H. J. 
Author-X-Name-Last: Lee 
Author-Name: S. Lee 
Author-X-Name-First: S. 
Author-X-Name-Last: Lee 
Title: Did FIN 48 increase companies&#x2019; tax payments? Trade-off between disclosure and tax burdens 
Abstract:
  This article examines the effects of implementing FIN 48 on
 companies&#x2019; tax burdens. While the literature examines how FIN 48
 impacts companies&#x2019; financial reporting, its effect on tax payments
 has not yet been explored. We find that FIN 48 likely increased larger
 companies&#x2019; tax burdens. Prior to the adoption of FIN 48, larger
 companies may have used their asymmetric information advantage over the
 tax authorities to maintain relatively aggressive tax positions. To the
 extent that such tax-saving strategies were possible only for larger
 companies, FIN 48 appears to have reduced the appeal of these more
 aggressive tax minimization strategies. 
Journal: Applied Economics 
Pages: 4239-4248 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587789 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4239-4248




Template-Type: ReDIF-Article 1.0
Author-Name: Hsu-Ling Chang 
Author-X-Name-First: Hsu-Ling 
Author-X-Name-Last: Chang 
Author-Name: De-Chih Liu 
Author-X-Name-First: De-Chih 
Author-X-Name-Last: Liu 
Author-Name: Chi-Wei Su 
Author-X-Name-First: Chi-Wei 
Author-X-Name-Last: Su 
Title: Purchasing power parity with flexible Fourier stationary test for Central and Eastern European countries 
Abstract:
  This study applies stationary test with a Fourier function proposed by
 Enders and Lee (2004, 2009) to test the validity of long-run Purchasing
 Power Parity (PPP) to assess the nonstationary properties of the Real
 Exchange Rate (RER) for seven Central and Eastern European Countries
 (CEECs). We find that our approximation has higher power to detect
 U-shaped breaks and smooth breaks than linear method if the true data
 generating process of exchange rate is in fact a stationary nonlinear
 process. We examine the validity of PPP from the nonlinear point of view
 and provide robust evidence clearly indicating that the PPP holds true for
 all CEECs. Our findings point out their exchange rate adjustment is mean
 reversion towards PPP equilibrium values in a nonlinear way. 
Journal: Applied Economics 
Pages: 4249-4256 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.587791 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587791 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4249-4256




Template-Type: ReDIF-Article 1.0
Author-Name: Julien Chevallier 
Author-X-Name-First: Julien 
Author-X-Name-Last: Chevallier 
Title: Time-varying correlations in oil, gas and CO<sub>2</sub> prices: an application using BEKK, CCC and DCC-MGARCH models 
Abstract:
  Previous literature has identified oil and gas prices as being the main
 drivers of CO<sub>2</sub> prices in a univariate Generalized
 Autoregressive Conditional Heteroscedasticity (GARCH) econometric
 framework (Alberola <italic>et&#xA0;al</italic>., 2008; Oberndorfer,
 2009). By contrast, we argue in this article that the interrelationships
 between energy and emissions markets shall be modelled in a Vector
 Autoregressive (VAR) and Multivariate GARCH (MGARCH) framework, so as to
 reflect the dynamics of the correlations between the oil, gas and
 CO<sub>2</sub> variables overtime. Using the Baba--Engle--Kraft--Kroner
 (BEKK), Constant Conditional Correlation (CCC) and Dynamic Conditional
 Correlation MGARCH (DCC-MGARCH) models on daily data from April 2005 to
 December 2008, we highlight significant own-volatility, cross-volatility
 spillovers, and own persistent volatility effects for nearly all markets,
 indicating the presence of strong Autoregressive Conditional
 Heteroscedasticity (ARCH) and GARCH effects. Besides, we provide strong
 empirical evidence of time-varying correlations in the range of
 [&#x2212;0.3;&#x2009;0.3] between oil and gas, [&#x2212;0.05;&#x2009;0.05]
 between oil and CO<sub>2</sub>, and [&#x2212;0.2;&#x2009;0.2] between gas
 and CO<sub>2</sub>, that have not been considered by previous studies.
 These findings are of interest for traders and utilities in the energy
 sector, but also for a broader applied economics audience. 
Journal: Applied Economics 
Pages: 4257-4274 
Issue: 32 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589809 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589809 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:32:p:4257-4274




Template-Type: ReDIF-Article 1.0
Author-Name: A. Hackethal 
Author-X-Name-First: A. 
Author-X-Name-Last: Hackethal 
Author-Name: M. Koetter 
Author-X-Name-First: M. 
Author-X-Name-Last: Koetter 
Author-Name: O. Vins 
Author-X-Name-First: O. 
Author-X-Name-Last: Vins 
Title: Do government owned banks trade market power for slack? 
Abstract:
  The &#x2018;Quiet Life Hypothesis (QLH)&#x2019; posits that banks with
 market power have less incentives to maximize revenues and minimize cost.
 Especially government owned banks with a public mandate precluding profit
 maximization might succumb to a quiet life. We use a unified approach that
 simultaneously measures market power and efficiency to test the quiet life
 hypothesis of German savings banks. We find that average local market
 power declined between 1996 and 2006. Cost and profit efficiency remained
 constant. Nonparametric correlations are consistent with a quiet life
 regarding cost efficiency but not regarding profit efficiency. The quiet
 life on the cost side is negatively correlated with bank size, quality of
 loan portfolio and local per capita income. The last result indicates that
 the quiet cost life is therefore potentially due to benevolent excess
 consumption of local input factors by public savings banks. 
Journal: Applied Economics 
Pages: 4275-4290 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589808 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589808 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4275-4290




Template-Type: ReDIF-Article 1.0
Author-Name: Ryoko Morozumi 
Author-X-Name-First: Ryoko 
Author-X-Name-Last: Morozumi 
Title: A test of a unitary model on labour supply using the information of household decision-making systems 
Abstract:
  This article tests whether a unitary model is consistent with household
 behaviour using the data of two-earner couples. It focuses on the unitary
 model assuming that all family members have the same utility function. The
 analysis investigates the difference in a husband's and wife's labour
 supply between the household that determines the wife to be the main
 decision-maker and the household that selects a different decision-making
 system under the control of individual and household characteristics. The
 estimation employs a treatment effects model to consider the selectivity
 bias caused by unmeasured characteristics. Results show that the household
 with the wife as the main decision-maker increases the husband's working
 hours by 15% and decreases the wife's working hours by 59%, compared to
 the household that selects a different decision-making system. This
 implies that the unitary model is rejected. Additionally, the husband's
 wage rate, the husband's and wife's health status, and their gambling
 addiction determine the household decision-making system such as the
 variables that determine the reservation utility of not being married. The
 effect of the decision-making system on the labour supply and that of the
 determinant factors on the decision-making system are consistent with the
 implications obtained from Nash bargaining models and collective models. 
Journal: Applied Economics 
Pages: 4291-4300 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589810 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589810 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4291-4300




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Eun Lee 
Author-X-Name-First: Jong-Eun 
Author-X-Name-Last: Lee 
Title: Macroeconomic determinants of the world trade disputes 
Abstract:
  This article is whether and how the world macroeconomic environments
 influence the world trade disputes. We use two-pronged approach. First, we
 try to answer the question whether and how global macroeconomic
 environments are attached to the count of the world trade disputes. Even
 if the traditional literature captures it at the national-level, global
 picture needs to be completed. The second question we address is that
 given the set of trade dispute initiating countries, whether and how
 differently high-, middle- and low-income countries respond to their
 macroeconomic environments in their decision-makings of trade disputes
 initiations. The universe in the second question is a selected set of the
 filing countries only, not all countries on this planet. One can capture
 the behaviours of the countries involved in the trade disputes under
 certain macroeconomic circumstances. The period is from 1995 to 2008,
 covering all records of trade disputes since the birth of the World Trade
 Organization (WTO). 
Journal: Applied Economics 
Pages: 4301-4311 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589811 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589811 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4301-4311




Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Hartarska 
Author-X-Name-First: Valentina 
Author-X-Name-Last: Hartarska 
Author-Name: Denis Nadolnyak 
Author-X-Name-First: Denis 
Author-X-Name-Last: Nadolnyak 
Title: Board size and diversity as governance mechanisms in community development loan funds in the USA 
Abstract:
  Community Development Loan Funds (CDLFs) in the US help revitalize
 low-income communities by providing financial services to underserved
 populations. This article uses recently available data from several
 surveys to explore the link between performance and board size and
 diversity. Given the unique nature of CDLFs, specific hypotheses are
 formulated based on insights from the literature on governance in banks
 and nonprofit institutions. To capture the CDLFs multiple objectives, the
 article adapts an empirical approach used to study governance in banks.
 The results show that efficiency improves as the board size increases up
 to 13 members. The results also suggest that gender diversity has a
 positive impact, while racial diversity is associated with a negative but
 negligibly small impact. 
Journal: Applied Economics 
Pages: 4313-4329 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589812 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589812 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4313-4329




Template-Type: ReDIF-Article 1.0
Author-Name: Denis Nadolnyak 
Author-X-Name-First: Denis 
Author-X-Name-Last: Nadolnyak 
Author-Name: Valentina Hartarska 
Author-X-Name-First: Valentina 
Author-X-Name-Last: Hartarska 
Title: Agricultural disaster payments in the southeastern US: do weather and climate variability matter? 
Abstract:
  Governments around the world are forced to react to disasters caused by
 weather. The agricultural sector is particularly susceptible to weather
 extremes and adverse climate conditions. In the US, agricultural disaster
 payments account for a significant part of total agricultural subsidies.
 The payments, and their distribution, are more important in the areas most
 affected by disastrous weather events, usually coinciding with areas of
 pronounced impact of the El Nino Southern Oscillation (ENSO). In this
 article, the impact of weather and climate, as well as some economic
 variables, on disaster payments is analysed using county level data from
 four states in the southeastern United States. The results suggest that
 weather and climate variables explain most of the crop disaster payments
 at the county level while socioeconomic variables do not, suggesting that
 advancements in weather and climate forecasts could be helpful in planning
 for disaster compensation. 
Journal: Applied Economics 
Pages: 4331-4342 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589813 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4331-4342




Template-Type: ReDIF-Article 1.0
Author-Name: Eva Fransen 
Author-X-Name-First: Eva 
Author-X-Name-Last: Fransen 
Author-Name: Janneke Plantenga 
Author-X-Name-First: Janneke 
Author-X-Name-Last: Plantenga 
Author-Name: Jan   Dirk Vlasblom 
Author-X-Name-First: Jan   Dirk 
Author-X-Name-Last: Vlasblom 
Title: Why do women still earn less than men? Decomposing the Dutch gender pay gap, 1996--2006 
Abstract:
  Despite major improvements in women's labour market attachment, women
 still earn considerably less than men. International research shows that
 the persistence of the gender pay gap may be due to the fact that although
 the gap in characteristics between men and women is diminishing, changes
 in the wage structure counteract this change. This article will study
 whether this &#x2018;swimming upstream&#x2019; phenomenon is also playing
 a role in the rather slow convergence between male and female wages in the
 Netherlands. Our results indicate that this is not the case; most of the
 changes in the Dutch wage structure have been rather favourable to women.
 The lacking convergence in wages has to be explained from the fact that
 despite the favourable changes, the Dutch wage structure still contains a
 considerable implicit gender bias. 
Journal: Applied Economics 
Pages: 4343-4354 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589818 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589818 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4343-4354




Template-Type: ReDIF-Article 1.0
Author-Name: Hui Shi 
Author-X-Name-First: Hui 
Author-X-Name-Last: Shi 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Economies of scale in the Australian tourism industry 
Abstract:
  The measurement of economies of scale in the tourism industry has not
 been done to this point, as tourism is not a specific industry according
 to international statistical standards. Among many industries related to
 tourism, four sectors (accommodation, transport, retail trade and
 recreational services) across six states and two territories from 1997 to
 2007 are studied as they contribute nearly 70% of tourism output in
 Australia. By comparing regression results from the Cobb--Douglas (C--D)
 production function and the translog production function, we find that
 there is evidence of increasing returns in transport, retail trade and
 recreational services at the industry level. However, accommodation is
 characterized by constant returns to scale at the industry level. As
 accommodation is responsible for the biggest share of tourism output, this
 suggests that overall the tourism sector is not characterized by
 increasing returns. We also find that the degrees of returns to scale from
 the C--D and translog production functions are different and that the
 imposition of input share also influences the empirical results. Both of
 these factors stress the importance of model specification to the
 measurement of economies of scale. 
Journal: Applied Economics 
Pages: 4355-4367 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589819 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589819 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4355-4367




Template-Type: ReDIF-Article 1.0
Author-Name: Rolf F&#xE4;re 
Author-X-Name-First: Rolf 
Author-X-Name-Last: F&#xE4;re 
Author-Name: Chenggang Wang 
Author-X-Name-First: Chenggang 
Author-X-Name-Last: Wang 
Author-Name: Clark Seavert 
Author-X-Name-First: Clark 
Author-X-Name-Last: Seavert 
Title: A model of site-specific nutrient management 
Abstract:
  A model is introduced to answer three questions pertaining to
 site-specific nutrient management in production of orchard crops: which
 input factors of crop production are limiting yield; what action should be
 taken to remove the limiting factors; and what is the potential gain in
 revenue from taking the action. Our model captures the essence of the law
 of the minimum in that yield and revenue increase only if the limiting
 nutrients are adjusted. An example of pear trees shows how to implement
 the method. 
Journal: Applied Economics 
Pages: 4369-4380 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589820 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589820 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4369-4380




Template-Type: ReDIF-Article 1.0
Author-Name: Shu   Chun Chang 
Author-X-Name-First: Shu   Chun 
Author-X-Name-Last: Chang 
Title: The effect of social capital on post-earthquake reconstruction (programmes) in Nantou County, Taiwan: an assessment 
Abstract:
  The study aims, through an examination of social capital on
 post-earthquake reconstruction programmes, to assess the impact of
 government's programmes on integrated community development and to draw
 policy implications. To this end, the study explores the programmes
 implemented by the government in the communities of Nantou County after
 the earthquake. The findings show that of the three measurements,
 &#x2018;infrastructure improvement&#x2019; satisfied most respondents in
 the three survey areas, but in Lugu Township and in Nantou City, further
 improvements are needed in &#x2018;unemployment reduction&#x2019; and
 &#x2018;respondents betterment&#x2019;. 
Journal: Applied Economics 
Pages: 4381-4389 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589821 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589821 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4381-4389




Template-Type: ReDIF-Article 1.0
Author-Name: Chandranath Amarasekara 
Author-X-Name-First: Chandranath 
Author-X-Name-Last: Amarasekara 
Author-Name: George   J. Bratsiotis 
Author-X-Name-First: George   J. 
Author-X-Name-Last: Bratsiotis 
Title: Monetary policy and real wage cyclicality 
Abstract:
  This article points to the potential role of monetary policy in affecting
 the degree of real wage cyclicality. We show that the degree and direction
 of real wage cyclicality is determined by the interaction of (i) the
 returns to scale in production, (ii) the nature of aggregate shocks and
 (iii) monetary policy. Given that production technology is fairly constant
 in the short run, we suggest that variations in the real wage -- output
 covariance depend largely on the combination of the latter two.
 Identifying well-documented monetary policy phases in six major
 Organization for Economic Co-operation and Development (OECD) countries
 and accounting for both aggregate demand and supply shocks, we provide
 empirical evidence to support our main theoretical claim. 
Journal: Applied Economics 
Pages: 4391-4408 
Issue: 33 
Volume: 44 
Year: 2012 
Month: 11 
X-DOI: 10.1080/00036846.2011.589823 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589823 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:33:p:4391-4408




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chun Chang 
Author-X-Name-First: Shu-Chun 
Author-X-Name-Last: Chang 
Title: Evaluation of Taiwan's aboriginal development before Ching Dynasty 
Abstract:
	      This study makes use of information on geography, climate,
 immigration, history and anthropology to analyse interactions between
 changes in terrain and migration developments in these two areas from 1624
 to 1894. Bangang, on the Yunlin-Chiayi plain, was the biggest city in
 Taiwan during the period 1624-1720. However, the terrain of this area has
 changed greatly with the coastline moving toward the west about 20 meters
 per year. Therefore, many cities and harbours in this area were gradually
 replaced. As a result, much new land was created and many races immigrated
 into the area. The first Han Chinese migration was led by Yen Shih-Chi and
 Cheng Chih-Lung in 1624, and entered the coastal area of Yunlin-Chiayi for
 exploitation. By 1650 it had grown to 25 000 people and that huge number
 forced the Tsou tribe to begin moving toward Ali Mountain.	     
Journal: Applied Economics 
Pages: 4409-4419 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.589822 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589822 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4409-4419




Template-Type: ReDIF-Article 1.0
Author-Name: N. Domeque Claver 
Author-X-Name-First: N. Domeque 
Author-X-Name-Last: Claver 
Author-Name: C. Fillat Castej󮠍
Author-X-Name-First: C. Fillat 
Author-X-Name-Last: Castej󮠍
Author-Name: F. Sanz Gracia 
Author-X-Name-First: F. Sanz 
Author-X-Name-Last: Gracia 
Title: External economies as a mechanism of agglomeration in EU manufacturing 
Abstract:
	      Productive externalities are significant determinants of
 agglomeration, not deeply studied at the industry and international level.
 We analyse the impact on productivity growth of technological
 externalities, both inter- and intraindustry, national or international,
 at the industry level for the EU countries and the period 1995-2002. The
 results confirm the advisability of considering international
 externalities when countries are taken as regions, whose omission
 underestimates national spillovers. Together with national endowments and
 a central geographical position, the growth of productivity is encouraged
 by national and international specialization as a general result;
 moreover, it is fuelled by stronger interindustry spillovers and
 productive diversification, a result more evident for high technology
 industries, while lower technology industries are more sensitive to the
 omission of international externalities. Economic integration seems to be
 relevant, because supranational regions with less friction for goods and
 factor movements are more likely to take advantage of external economies
 as a mechanism of productivity growth and agglomeration.	   
Journal: Applied Economics 
Pages: 4421-4438 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.589824 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589824 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4421-4438




Template-Type: ReDIF-Article 1.0
Author-Name: Ant󮩯 Afonso 
Author-X-Name-First: Ant󮩯 
Author-X-Name-Last: Afonso 
Author-Name: Ricardo M. Sousa 
Author-X-Name-First: Ricardo M. 
Author-X-Name-Last: Sousa 
Title: The macroeconomic effects of fiscal policy 
Abstract:
	      We investigate the macroeconomic effects of fiscal policy
 using a Bayesian Structural Vector Autoregression (B-SVAR) approach. We
 identify fiscal policy shocks via a partial identification scheme, but
 also: (i) include the feedback from government debt; (ii) look at the
 impact on the composition of output; (iii) assess the effects on asset
 markets; (iv) use quarterly data; and (v) analyse empirical evidence from
 the US, the UK, Germany and Italy. The results show that government
 spending shocks, in general, have a small effect on Gross Domestic Product
 (GDP); lead to important 'crowding-out' effects; have a varied impact on
 housing prices and generate a quick fall in stock prices. Government
 revenue shocks generate a mixed effect on housing prices and a small and
 positive effect on stock prices. The empirical evidence also suggests that
 it is important to explicitly consider the government debt dynamics in the
 model. 	 
Journal: Applied Economics 
Pages: 4439-4454 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591732 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4439-4454




Template-Type: ReDIF-Article 1.0
Author-Name: Hendrik Schmitz 
Author-X-Name-First: Hendrik 
Author-X-Name-Last: Schmitz 
Title: More health care utilization with more insurance coverage? Evidence from a latent class model with German data 
Abstract:
	      We analyse the impact of optional deductibles, private
 supplementary health insurance and income on the demand for health care
 utilization, measured as the number of physician visits with data from the
 German Socio-Economic Panel (SOEP). With a set of newly available
 variables for the years 2002, 2004 and 2006 that measure individual health
 more accurately and including risk-attitudes towards health we find that
 possible endogeneity of the insurance choice is not a problem. A latent
 class approach that takes into account the panel structure of the data
 reveals that especially individuals who have few doctor visits, the low
 users, respond strongest to insurance status and income. In this group we
 find that more insurance increases the demand for physician visits and
 there is a pro-rich inequity in health care utilization. No such effects
 are found for the high users.		
Journal: Applied Economics 
Pages: 4455-4468 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591733 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4455-4468




Template-Type: ReDIF-Article 1.0
Author-Name: K. Hohmeyer 
Author-X-Name-First: K. 
Author-X-Name-Last: Hohmeyer 
Title: Effectiveness of One-Euro-Jobs: do programme characteristics matter? 
Abstract:
	      Recent German labour market reforms introduced a large scale
 workfare programme called One-Euro-Jobs to activate welfare recipients and
 improve their employment prospects. In programme design leeway is left to
 regional actors. Using administrative data and Propensity Score (PS)
 matching, this article investigates the association between programme
 design and effectiveness, so as to provide insight on how to increase
 programme effectiveness. First, effects of different types of
 One-Euro-Jobs according to planned duration and weekly working hours
 compared to 'waiting' are estimated. Second, programme types are compared
 directly to disentangle selection and programme effects. As expected
 lock-in effects are larger for participations with a longer planned
 duration, but not for those with longer weekly working hours.
 One-Euro-Jobs do not generally increase the employment prospects for East
 German men beyond 2 years after programme start and longer and more
 intensive participations even decrease employment prospects. In West
 Germany, One-Euro-Jobs generally increase the employment chances and
 longer participations lead to slightly greater employment opportunities
 roughly 2 years after programme start. The initial advantages of short
 participations decrease over time. Following these results, a reallocation
 of participants might improve programme effectiveness. 	 
Journal: Applied Economics 
Pages: 4469-4484 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591734 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591734 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4469-4484




Template-Type: ReDIF-Article 1.0
Author-Name: J. van Lottum 
Author-X-Name-First: J. 
Author-X-Name-Last: van Lottum 
Author-Name: D. Marks 
Author-X-Name-First: D. 
Author-X-Name-Last: Marks 
Title: The determinants of internal migration in a developing country: quantitative evidence for Indonesia, 1930-2000 
Abstract:
	      This study specifies and estimates a gravity model for
 interprovincial migration in Indonesia. Analysing five cross-sections for
 Indonesia's 26 provinces for five survey years between 1930 and 2000 we
 show that throughout the twentieth century economic factors were more
 important in the explanation of interprovincial migration patterns in
 Indonesia than planned migration policy aimed at the redistribution of the
 population. In addition, our regression analysis demonstrates that the
 urban primacy of Jakarta, Indonesia's capital, had a strong effect on the
 direction and size of migration flows. Our findings thus suggest that the
 costly government-supported migration is not very successful and that a
 strongly centralized government induces migration flows to the capital.
 These findings have policy implications for other developing countries.    
Journal: Applied Economics 
Pages: 4485-4494 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591735 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591735 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4485-4494




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Author-Name: Zhongfei Chen 
Author-X-Name-First: Zhongfei 
Author-X-Name-Last: Chen 
Author-Name: Luis A. Gil-Alana 
Author-X-Name-First: Luis A. 
Author-X-Name-Last: Gil-Alana 
Title: Housing sales in urban Beijing 
Abstract:
	      In the housing market, new properties sometimes experience
 delays before they are sold. Such delays reflect the preferences of buyers
 in respect of the homes' characteristics. Therefore, it is important for
 managerial purposes to identify the causes of housing sales delays. After
 analysing the delays in sales of housing in Beijing City, China, the
 principal finding of this study is that delays are largely explained by
 the dwellings' characteristics and location. Policy implications of the
 research findings, particularly those related to means of reducing the
 delays, are discussed. 	 
Journal: Applied Economics 
Pages: 4495-4504 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591736 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591736 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4495-4504




Template-Type: ReDIF-Article 1.0
Author-Name: A. Zhang 
Author-X-Name-First: A. 
Author-X-Name-Last: Zhang 
Author-Name: G. Q. Huang 
Author-X-Name-First: G. Q. 
Author-X-Name-Last: Huang 
Author-Name: X. Liu 
Author-X-Name-First: X. 
Author-X-Name-Last: Liu 
Title: Impacts of business environment changes on global manufacturing in the Chinese Greater Pearl River Delta: a supply chain perspective 
Abstract:
	      Business operating conditions have changed substantially in
 the Chinese Greater Pearl River Delta (GPRD) due to the Chinese currency
 appreciation, rising labour costs, highly volatile oil prices and new
 processing trade policies. Such changes have triggered manufacturers to
 rethink their global operations. This article studies potential global
 manufacturing trends from a supply chain perspective. A mixed integer
 programming model suggests that these changes have negatively affected the
 region's competitive advantages as its labour-intensive production mainly
 targets at the mass market and competes on low costs. Three production
 relocation trends are affirmed, i.e. the relocation to lower-cost areas
 within China, lower-cost Asian countries and areas near end markets.
 However, it is also discovered that the GPRD region still attracts
 businesses with its formation of industrial clusters, the enhanced
 comparative advantage against competing regions in inland China or Asian
 lower-cost countries under high oil prices, and Hong Kong's being a robust
 location choice to host trade operations.	    
Journal: Applied Economics 
Pages: 4505-4514 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591737 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591737 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4505-4514




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W. Clements 
Author-X-Name-First: Kenneth W. 
Author-X-Name-Last: Clements 
Author-Name: Izan H. Y. Izan 
Author-X-Name-First: Izan H. Y. 
Author-X-Name-Last: Izan 
Title: The pay parity matrix  -  a tool for analysing the structure of pay 
Abstract:
	      This article introduces a new tool for measuring relative pay
 within organizations. We call this innovation the 'Pay Parity (PP)
 matrix', and discuss its advantages and useful properties. The PP matrix
 allows us to conveniently measure, and draw inferences about, the nature
 of the whole remuneration schedule, such as its gradient and smoothness.
 We illustrate the application of the PP matrix by using data on the
 remuneration of academic executives in universities.	       
Journal: Applied Economics 
Pages: 4515-4525 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591738 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591738 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4515-4525




Template-Type: ReDIF-Article 1.0
Author-Name: Rashmi Umesh Arora 
Author-X-Name-First: Rashmi Umesh 
Author-X-Name-Last: Arora 
Title: Finance and inequality: a study of Indian states 
Abstract:
	      Although a large literature exists on finance and economic
 growth, few studies have empirically examined the relationship between
 finance and inequality. Using grouped national household sample survey
 data on monthly household consumption expenditure at the sub-national
 level for the years 1999-2000 to 2006-2007, we examine the relationship
 between Financial Development (FD) and rural and urban inequality in
 India. The results indicate that FD is associated with a reduction in
 inequality, but only in the urban areas. Further, inequality is found to
 be higher in the richer states compared to less developed and low income
 states, and as state income increases, inequality also increases both in
 the rural and urban areas. Finally, our results show that increase in
 population per bank branch leads to higher inequality in urban areas but
 decline in rural areas.	  
Journal: Applied Economics 
Pages: 4527-4538 
Issue: 34 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.597736 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597736 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4527-4538




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Kvasnicka 
Author-X-Name-First: Michael 
Author-X-Name-Last: Kvasnicka 
Author-Name: Harald Tauchmann 
Author-X-Name-First: Harald 
Author-X-Name-Last: Tauchmann 
Title: Much ado about nothing? Smoking bans and Germany's hospitality industry 
Abstract:
  Over the past years, public smoking bans have been introduced in most
 European countries. Unlike elsewhere, in Germany such bans were introduced
 at state level at different points in time, which provides important
 intra-country regional variation that can be exploited to identify the
 effects of such bans on the hospitality industry. Using monthly data from
 a compulsory survey carried out by the German Federal Statistical Office,
 we study the short-run effects that these bans had on
 establishments&#x2019; sales. In contrast to the largely US-based
 literature, we find that smoke-free policies had a negative (yet moderate)
 effect on establishment sales. Closure rates of businesses in the
 hospitality industry, however, were not significantly affected by the
 introduction of state smoking bans. 
Journal: Applied Economics 
Pages: 4539-4551 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591739 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591739 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4539-4551




Template-Type: ReDIF-Article 1.0
Author-Name: David Masclet 
Author-X-Name-First: David 
Author-X-Name-Last: Masclet 
Author-Name: Thierry P鮡rd 
Author-X-Name-First: Thierry 
Author-X-Name-Last: P鮡rd 
Title: Do reputation feedback systems really improve trust among anonymous traders? An experimental study 
Abstract:
  Feedback systems are claimed to be a crucial component of the success of
 electronic marketplaces like eBay or Amazon Marketplace. This article aims
 to compare the effects of various feedback systems on trust between
 anonymous traders, through a set of experiments based on the trust game.
 Our results indicate that trust is significantly improved by the
 introduction of a reputation feedback system. However, such mechanisms are
 far from being perfect and are vulnerable to strategic ratings and
 reciprocation. Our findings indicate that some changes in rating rules may
 significantly improve the efficiency of feedback systems, by avoiding
 strategic rating or reciprocation, and hence stimulate trust and
 trustworthiness among traders. In particular, a system in which
 individuals are not informed of their partner's rating decision before
 making their own decision provides better results, both in terms of trust
 and earnings. 
Journal: Applied Economics 
Pages: 4553-4573 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591740 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591740 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4553-4573




Template-Type: ReDIF-Article 1.0
Author-Name: Ana G&#xF3;mez-Loscos 
Author-X-Name-First: Ana 
Author-X-Name-Last: G&#xF3;mez-Loscos 
Author-Name: Mar𨀠 Dolores Gadea 
Author-X-Name-First: Mar𨀠 Dolores 
Author-X-Name-Last: Gadea 
Author-Name: Antonio Monta&#xF1;鳠
Author-X-Name-First: Antonio 
Author-X-Name-Last: Monta&#xF1;鳠
Title: Economic growth, inflation and oil shocks: are the 1970s coming back? 
Abstract:
  This article analyses the relationship between oil price shocks and the
 macroeconomic evolution of the Group of Seven (G7) countries. Using the Qu
 and Perron (2007) methodology, we endogenously identify three breaks in
 the nonlinear relationship across our 1970 to 2008 sample. We compute
 long-term multipliers and find that the response of output and inflation
 to oil price shocks is greatest in the 1970s and progressively disappears
 until the late 1990s. In contrast to the previous literature, we observe
 that both effects reappear in the 2000s, especially on inflation.
 Nevertheless, the transmission of oil price shocks to the economy is
 weaker than in the 1970s, which means that oil price shocks have lost some
 of their explanatory power. Precisely identifying these effects is crucial
 for the design of adequate economic measures to control or smoothen them. 
Journal: Applied Economics 
Pages: 4575-4589 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.591741 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591741 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4575-4589




Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Xu 
Author-X-Name-First: Xiao 
Author-X-Name-Last: Xu 
Author-Name: Gail   A. Jensen 
Author-X-Name-First: Gail   A. 
Author-X-Name-Last: Jensen 
Title: Does health insurance reduce illness-related worker absenteeism? 
Abstract:
  The objective of this article is to examine whether having health
 insurance reduces illness-related absenteeism among older workers. A
 nationally representative sample of 1780 workers in the United States,
 aged 52--64, are drawn from the 2004--2006 Health and Retirement Study
 (HRS). Binary logistic regressions and censored Tobit models are estimated
 for workers&#x2019; likelihood of missing work days due to illness and the
 number of illness-related work days missed, respectively, while explicitly
 addressing the possibility of insurance-selection effects. The findings
 suggest that over a 12-month period, older workers without health
 insurance are as likely as insured workers to miss work days due to
 illness and there are no differences in the number of days missed between
 insured and uninsured workers. However, there is strong evidence that poor
 baseline health, onset of new diseases and longer hospitalization
 significantly increase an older worker's absenteeism at work. These
 results suggest that having health insurance does not affect
 illness-related absenteeism among older workers in the US. Future research
 examining other aspects of worker productivity, such as
 &#x2018;presenteeism&#x2019;, and the longer term effects of insurance on
 productivity can extend our understanding of the role of health insurance
 in the workplace. 
Journal: Applied Economics 
Pages: 4591-4603 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.593498 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593498 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4591-4603




Template-Type: ReDIF-Article 1.0
Author-Name: Maria   Cristina Zhunio 
Author-X-Name-First: Maria   Cristina 
Author-X-Name-Last: Zhunio 
Author-Name: Sharmila Vishwasrao 
Author-X-Name-First: Sharmila 
Author-X-Name-Last: Vishwasrao 
Author-Name: Eric   P. Chiang 
Author-X-Name-First: Eric   P. 
Author-X-Name-Last: Chiang 
Title: The influence of remittances on education and health outcomes: a cross country study 
Abstract:
  We study the effect of international remittances on aggregate educational
 and health outcomes using a sample of 69 low- and middle-income countries.
 We find that remittances play an important role in improving primary and
 secondary school attainment, increasing life expectancy and reducing
 infant mortality. Our results suggest that as migration laws continue to
 support greater emigration and remittances, policies should be enacted to
 facilitate the flow of remittances as they represent a significant source
 for economic development. 
Journal: Applied Economics 
Pages: 4605-4616 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.593499 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593499 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4605-4616




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Nagayasu 
Author-X-Name-First: Jun 
Author-X-Name-Last: Nagayasu 
Title: Financial innovation and regional money 
Abstract:
  This article studies the effect that financial innovation, which has been
 very common in recent years, has on money. Using Japanese regional data
 and the money demand specification, we first provide evidence of
 instability in the simple money-output relationship. However, when this
 relationship is extended to include a proxy for a comprehensive measure of
 financial innovation, the model is found to be stable. Furthermore,
 consistent with economic theory, evidence is obtained of financial
 innovation leading to decreased demand for liquid financial assets. In
 this respect, in Japan demand deposits seem to possess very similar
 characteristics to cash over recent years. 
Journal: Applied Economics 
Pages: 4617-4629 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.593500 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593500 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4617-4629




Template-Type: ReDIF-Article 1.0
Author-Name: Emma   M. Iglesias 
Author-X-Name-First: Emma   M. 
Author-X-Name-Last: Iglesias 
Title: An analysis of extreme movements of exchange rates of the main currencies traded in the Foreign Exchange market 
Abstract:
  This article analyses the extreme movements of exchange rates of the
 seven main currencies traded in the Foreign Exchange market against the US
 dollar: Euro, British pound, Canadian dollar, Japanese Yen, Swiss franc,
 Australian dollar and New Zealand dollar by using tail index indicators.
 Payaslio&#x11F;lu (2009) considers the case of the Turkish exchange rate
 using the traditional Hill (1975) estimator as a tool. In this article, we
 employ also an alternative estimator proposed in Iglesias and Linton
 (2009) that is shown to have, in some cases, improved finite sample
 properties and it provides substantially different results versus the Hill
 estimator. We find that for the Euro, Japanese Yen, Swiss franc, Canadian,
 Australian and New Zealand dollars, the Hill estimator provides a better
 measure to analyse the extreme behaviour; while for the British pound, the
 Iglesias and Linton alternative estimator is superior by using
 Hausman-type tests of misspecification. Measures of value at risk are also
 provided for the seven markets. We also find that the largest estimated
 value at risk by far is for the Japanese Yen, followed by the Swiss franc,
 the Canadian dollar, the Euro, the New Zealand dollar and the Australian
 dollar. The UK pound has the smallest value at risk when extreme movements
 occur. 
Journal: Applied Economics 
Pages: 4631-4637 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.593501 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593501 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4631-4637




Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Brown 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Brown 
Author-Name: Andrew Dickerson 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Dickerson 
Author-Name: Jolian McHardy 
Author-X-Name-First: Jolian 
Author-X-Name-Last: McHardy 
Author-Name: Karl Taylor 
Author-X-Name-First: Karl 
Author-X-Name-Last: Taylor 
Title: Gambling and credit: an individual and household level analysis for the UK 
Abstract:
  We explore the relationship between gambling and the use of credit at the
 individual and household levels using representative pooled cross-section
 data from the UK Expenditure and Food Surveys (EFS) (2001--2007). Gambling
 and the use of credit are shown to be positively correlated at the
 household level. We find that both the incidence and amount of gambling
 vary according to household income and the positive association between
 gambling and credit is stable across household income. It is also apparent
 that there is strong intra-household correlation in both gambling activity
 and the use of credit, with stronger relationships in lower income
 households. 
Journal: Applied Economics 
Pages: 4639-4650 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.593502 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593502 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4639-4650




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Chi Chen 
Author-X-Name-First: Yi-Chi 
Author-X-Name-Last: Chen 
Author-Name: Chang-Ching Lin 
Author-X-Name-First: Chang-Ching 
Author-X-Name-Last: Lin 
Title: Information shocks and cigarette addiction: views from dynamic panels with common structural changes 
Abstract:
  In this article we attempt to evaluate the impact of various information
 shocks on cigarette consumption. In contrast to the existing studies, we
 do not impose any break points <italic>a priori</italic>. We use recently
 developed techniques for sample splitting in the data on US cigarette
 demand, and find that using a time index as a transition variable can
 cluster cigarette demand into four distinct regimes. In the past four
 decades a myopic-to-rational switch in cigarette consumption behaviour was
 observed in response to various anti-smoking information events. In
 particular, we find strong evidence in support of the rational addiction
 model in the 1980s and 1990s. Moreover, in line with the theoretical
 prediction, our estimate of the long-run elasticity is twice as large as
 the short-run elasticity. Our empirical framework should improve policy
 makers' understanding of the dynamics of cigarette consumption in response
 to various anti-smoking campaigns, and stress the role of sound policy
 making in improving smoking control measures. 
Journal: Applied Economics 
Pages: 4651-4660 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.597733 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4651-4660




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Conte 
Author-X-Name-First: Anna 
Author-X-Name-Last: Conte 
Author-Name: Peter   G. Moffatt 
Author-X-Name-First: Peter   G. 
Author-X-Name-Last: Moffatt 
Author-Name: Fabrizio Botti 
Author-X-Name-First: Fabrizio 
Author-X-Name-Last: Botti 
Author-Name: Daniela   T. Di Cagno 
Author-X-Name-First: Daniela   T. 
Author-X-Name-Last: Di Cagno 
Author-Name: Carlo D&#x2019;Ippoliti 
Author-X-Name-First: Carlo 
Author-X-Name-Last: D&#x2019;Ippoliti 
Title: A test of the rational expectations hypothesis using data from a natural experiment 
Abstract:
  Data on contestants&#x2019; choices in Italian Game Show <italic>Affari
 Tuoi</italic> are analysed in a way that separates the effect of risk
 attitude (preferences) from that of beliefs concerning the amount of money
 that will be offered to contestants in future rounds. This separate
 identification is possible by virtue of the fact that, at a certain stage
 of the game, beliefs are not relevant, and risk attitude is the sole
 determinant of choice. The rational expectations hypothesis is tested by
 comparing the estimated belief function with the &#x2018;true&#x2019;
 offer function which is estimated extraneously using data on offers
 actually made to contestants. We find a close correspondence, leading us
 to accept the rational expectations hypothesis. The importance of belief
 formation is confirmed by the estimation of a mixture model which
 establishes that the vast majority of contestants are forward looking as
 opposed to myopic. 
Journal: Applied Economics 
Pages: 4661-4678 
Issue: 35 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.597734 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597734 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:35:p:4661-4678




Template-Type: ReDIF-Article 1.0
Author-Name: D. Maltritz 
Author-X-Name-First: D. 
Author-X-Name-Last: Maltritz 
Author-Name: A. B&#xFC;hn 
Author-X-Name-First: A. 
Author-X-Name-Last: B&#xFC;hn 
Author-Name: S. Eichler 
Author-X-Name-First: S. 
Author-X-Name-Last: Eichler 
Title: Modelling country default risk as a latent variable: a multiple indicators multiple causes approach 
Abstract:
  We study the determinants of country default risk by applying a Multiple
 Indicators Multiple Causes (MIMIC) model. This accounts for the fact that
 country default risk is an unobservable variable. Whereas existing
 (regression-based) approaches typically use only one of several possible
 country default risk indicators as the dependent variable, the MIMIC model
 enables us to consider several indicators at once. The simultaneous
 consideration of sovereign yield spreads and Standard and Poor (S&P)
 ratings may help to improve the identification of the latent country
 default risk. Our results confirm most of the literature's main findings
 regarding important determinants of country default risk, refute others
 and provide new evidence to controversial questions. 
Journal: Applied Economics 
Pages: 4679-4688 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2010.528369 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528369 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4679-4688




Template-Type: ReDIF-Article 1.0
Author-Name: Feng-Yuan Moh 
Author-X-Name-First: Feng-Yuan 
Author-X-Name-Last: Moh 
Author-Name: Hsi-Peng Lu 
Author-X-Name-First: Hsi-Peng 
Author-X-Name-Last: Lu 
Author-Name: Bing-Huei Lin 
Author-X-Name-First: Bing-Huei 
Author-X-Name-Last: Lin 
Title: Contributions to financial crisis research: an assessment of the literature in Social Science Citation Index journals from 1990 to 2008 
Abstract:
  Research in the field of financial crisis has generated a considerable
 amount of literature in the past, yet there has neither been any study to
 assess the contributions to the literature made by individuals or
 institutions, nor any to measure the impact of the articles and
 researchers. This study represents an attempt to: (1) investigate the
 major journals in publishing financial crisis research, (2) assess the
 contributions of individual researchers and institutions using the
 credited contribution approach and (3) measure the impact of individual
 publications and individual researchers on the financial crisis literature
 through citation analysis, based on the publications in Social Science
 Citation Index (SSCI) journals from 1990 to 2008. The findings provide a
 useful benchmark for assessing individual and institutional research
 productivity, and trends for future research and venues for publications
 are identified. 
Journal: Applied Economics 
Pages: 4689-4700 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2010.528370 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528370 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4689-4700




Template-Type: ReDIF-Article 1.0
Author-Name: Gaurav Nayyar 
Author-X-Name-First: Gaurav 
Author-X-Name-Last: Nayyar 
Title: The quality of employment in India's services sector: exploring the heterogeneity 
Abstract:
  For some observers, the dramatic growth of the services sector in India
 reflects rapid strides made by educated professionals. Some others see it
 as the expansion of an employer of last resort. Given this heterogeneity,
 the object of this article is to analyse the quality of employment being
 created in different sub-sectors of services, relative to the industrial
 sector, where quality is defined to include wages, job security and social
 protection. Analysing household survey data from India in 1993--94 and
 2004--05, we find the following. First, sub-sectors of services are
 generally either &#x2018;good&#x2019; or &#x2018;bad&#x2019; employers --
 higher wages do not compensate for less job security or less job
 protection. Second, the classification of most service sub-sectors as
 &#x2018;good&#x2019; or &#x2018;bad&#x2019; employers in 2004--05 is the
 same as that in 1993--94. Third, employment expansion during the 10-year
 period under consideration is more in service sub-sectors where quality of
 employment is low. 
Journal: Applied Economics 
Pages: 4701-4719 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.589816 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589816 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4701-4719




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Pedace 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Pedace 
Author-Name: Christine DuBois 
Author-X-Name-First: Christine 
Author-X-Name-Last: DuBois 
Title: Immigration policy and employment assimilation in the United States 
Abstract:
  We examine the impact of immigration policy on the employment propensity
 and assimilation of immigrants using a pooled cross-section of the
 1994--2004 Current Population Surveys (CPS). The results are generally
 consistent with positive immigrant employment assimilation. A
 Blinder--Oaxaca style decomposition shows that the foreign-born obtain
 more employment primarily through human capital acquisition and changes in
 labour market conditions rather than higher returns to observable skills,
 as sometimes seen in wage studies. In addition, our analysis suggests that
 immigration policies may influence both labour demand and supply
 incentives and are associated with structural shifts in the labour market. 
Journal: Applied Economics 
Pages: 4721-4730 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.589817 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589817 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4721-4730




Template-Type: ReDIF-Article 1.0
Author-Name: Loreto Lira 
Author-X-Name-First: Loreto 
Author-X-Name-Last: Lira 
Author-Name: Magdalena Ugarte 
Author-X-Name-First: Magdalena 
Author-X-Name-Last: Ugarte 
Author-Name: Rodrigo Vergara 
Author-X-Name-First: Rodrigo 
Author-X-Name-Last: Vergara 
Title: Prices and market structure: an empirical analysis of the supermarket industry in Chile 
Abstract:
  This article investigates empirically the relationship between market
 structure and consumer prices in the supermarket industry in Chile. A
 panel of monthly data from 16 cities in the period January 1998--September
 2006 is used. We find that, the more concentrated the industry in a city,
 the higher the prices, while the participation of major national chains in
 cities tends to lower prices. In terms of magnitude, this latter effect
 prevails over the former. Moreover, the dominant local chain is found to
 behave differently depending on whether or not one of the national chains
 is present in the city. Finally, we find that prices rise when a national
 chain acquires another chain and both were previously in a city (inmerge)
 while if only one of the two was present (outmerge), prices fall. 
Journal: Applied Economics 
Pages: 4731-4744 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.595689 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595689 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4731-4744




Template-Type: ReDIF-Article 1.0
Author-Name: V񍁯r   M. Gonz&#xE1;lez 
Author-X-Name-First: V񍁯r   M. 
Author-X-Name-Last: Gonz&#xE1;lez 
Author-Name: Francisco Gonz&#xE1;lez 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Gonz&#xE1;lez 
Title: Firm size and capital structure: evidence using dynamic panel data 
Abstract:
  This article suggests that the validity of the Trade-Off Theory (TOT) and
 Pecking-Order Theory (POT) to explain financing decisions varies among
 small, medium-sized and large firms. Using dynamic panel data tests on a
 sample of 3439 Spanish firms over the period 1995--2003, results are
 partially consistent with both explanations but suggest a greater validity
 of pecking-order predictions for small firms. In small firms, the negative
 influence of profitability and the positive influence of investment
 opportunities and of intangible assets on firm debt predicted by the POT
 are heightened. However, no differences are observed between small and
 large firms in their speed of adjustment to the target leverage as
 suggested by the TOT. 
Journal: Applied Economics 
Pages: 4745-4754 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.595690 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595690 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4745-4754




Template-Type: ReDIF-Article 1.0
Author-Name: R. Kumazawa 
Author-X-Name-First: R. 
Author-X-Name-Last: Kumazawa 
Author-Name: P. Gomis-Porqueras 
Author-X-Name-First: P. 
Author-X-Name-Last: Gomis-Porqueras 
Title: An empirical analysis of patents flows and R&D flows around the world 
Abstract:
  In this article, we empirically investigate the effect of Research and
 Development (R&D) flows on patent flows around the world. We do this using
 an unbalanced panel consisting primarily of Organization for Economic
 Co-operation and Development (OECD) countries that have both patent and
 R&D expenditure information broken down by domestic and foreign sources.
 Our analysis shows that even among a fairly homogeneous group of
 countries, the sources of patents and R&D differ substantially. Using a
 dynamic panel framework, we find that domestic R&D per capita increases
 domestic patents per capita only for the European Patent Convention (EPC)
 countries that already have a decentralized approach to innovation.
 Foreign R&D per capita increases foreign patents per capita in all
 countries even though foreign R&D constitutes a very small fraction of
 total R&D. We find that some of these differences can be attributed to the
 locations of the patent applications, including those to the European
 Patent Office (EPO), United States Patent and Trademark Office (USPTO) and
 triadic patent applications to the EPO, USPTO and Japan Patent Office
 (JPO) simultaneously. 
Journal: Applied Economics 
Pages: 4755-4763 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2010.528375 
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528375 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4755-4763




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro de Faria 
Author-X-Name-First: Pedro 
Author-X-Name-Last: de Faria 
Author-Name: Francisco Lima 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Lima 
Title: Interdependence and spillovers: is firm performance affected by others&#x2019; innovation activities? 
Abstract:
  The creation of new knowledge is a case in which agents' behaviour can
 affect the performance of other actors positively, given that new
 knowledge creates positive externalities in the market. In this context,
 we investigate the existence of performance spillovers associated with
 innovation activities by quantifying the innovation produced in
 surrounding firms and controlling for the fact that a firm is itself an
 innovation producer. We use data from the Third Community Innovation
 Survey (CIS III) that measures innovation in a broad way, not reducing it
 to R&D and patents, which departs from previous literature on spillovers.
 Furthermore, to tackle the endogeneity of the innovation variables on the
 firm production decision, we resort to the firm intellectual property
 protection methods as an instrument. We found a positive spillover of
 innovation on firm value added. The results also show that process
 innovation spillovers are more prevalent than product innovation
 spillovers. 
Journal: Applied Economics 
Pages: 4765-4775 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.560108 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.560108 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4765-4775




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Cowie 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Cowie 
Title: Contestability in bus markets -- evidence from the British de-regulated market 
Abstract:
  Following the 1985 Transport Act in Great Britain, reforms in the
 provision of bus services continue across Europe and other parts of the
 world to this day. The British experience, however, remains a key point of
 study in informing these continuing developments. This article looks at
 the issue of contestability in bus markets, and tests for the existence of
 the contestable market in Britain through an examination of fare levels,
 profit margins and technical efficiencies in 90 identifiable bus markets.
 The main conclusion is that there is evidence of the contestable market in
 Britain, however it can hardly be described as widespread, only found to
 be present in 15 of the 90 markets identified in the sample. The real
 issue however, particularly with regard to continuing reforms elsewhere in
 Europe, is the ability of regulatory authorities to maintain competitive
 and contestable (free) markets and the research suggests that in the face
 of market forces this is simply not possible. The only conclusion
 therefore is that contestability in the free market is not sustainable,
 and thus can only be introduced directly through franchising. 
Journal: Applied Economics 
Pages: 4777-4785 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.564146 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4777-4785




Template-Type: ReDIF-Article 1.0
Author-Name: M.   Hakan Berument 
Author-X-Name-First: M.   Hakan 
Author-X-Name-Last: Berument 
Author-Name: Zulal Denaux 
Author-X-Name-First: Zulal 
Author-X-Name-Last: Denaux 
Author-Name: Yeliz Yalcin 
Author-X-Name-First: Yeliz 
Author-X-Name-Last: Yalcin 
Title: Turkish monetary policy and components of aggregate demand: a VAR analysis with sign restrictions model 
Abstract:
  This article estimates the effects of monetary policy on components of
 aggregate demand using quarterly data on Turkish economy from 1987--2008
 by means of structural Vector Autoregression (VAR) methodology. This study
 adopts Uhlig's (2005) sign restrictions on the impulse responses of main
 macroeconomic variables to identify monetary shock. This study finds that
 expansionary monetary policy stimulates output through consumption and
 investment in the short-run. However, expansionary monetary policy is
 ineffective in the long-run. 
Journal: Applied Economics 
Pages: 4787-4798 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.564151 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564151 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4787-4798




Template-Type: ReDIF-Article 1.0
Author-Name: Christos Agiakloglou 
Author-X-Name-First: Christos 
Author-X-Name-Last: Agiakloglou 
Author-Name: Apostolos Tsimpanos 
Author-X-Name-First: Apostolos 
Author-X-Name-Last: Tsimpanos 
Title: An alternative approach for testing for linear association for two independent stationary AR(1) processes 
Abstract:
  Spurious correlations occur when two independent time series are found to
 be correlated according to the typical statistical procedure for testing
 the null hypothesis of zero correlation in the population. Using a Monte
 Carlo analysis, this study examines the spurious correlation phenomenon
 for two independent stationary AR(1) processes and it finds that if an
 alternative testing procedure is applied, spurious behaviour is eliminated
 using the variance of the sample correlation coefficient of these two
 series, suggested by Bartlett (1935). 
Journal: Applied Economics 
Pages: 4799-4803 
Issue: 36 
Volume: 44 
Year: 2012 
Month: 12 
X-DOI: 10.1080/00036846.2011.595695 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595695 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:44:y:2012:i:36:p:4799-4803




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Lucke 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Lucke 
Title: Testing the technology interpretation of news shocks 
Abstract:
  This article presents further evidence on the hypothesis of news driven
 business cycles. I use a structural Vector Error Correction Model (VECM)
 approach to identify news shocks as in Beaudry and Lucke (BL, 2010). I
 document three facts: first, news shocks identified by BL are Granger
 causal for US patent data; second, BL's analysis applied to German macro
 data reveals very similar patterns: activity is largely driven by news,
 and news shocks explain a sizable and increasing share of Total Factor
 Productivity (TFP) variance at long horizons; and third, German news
 shocks are Granger causal for German patent data and the pattern is,
 again, very similar to the US. Since patent data in the US and Germany are
 almost uncorrelated, the similarity is striking and strongly suggests a
 technology interpretation of news shocks. 
Journal: Applied Economics 
Pages: 1-13 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.566209 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566209 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:1-13




Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Fat&#xE1;s 
Author-X-Name-First: Enrique 
Author-X-Name-Last: Fat&#xE1;s 
Author-Name: Nikolaos Georgantz񈀍
Author-X-Name-First: Nikolaos 
Author-X-Name-Last: Georgantz񈀍
Author-Name: Juan   A. M&#xE1;&#xF1;ez 
Author-X-Name-First: Juan   A. 
Author-X-Name-Last: M&#xE1;&#xF1;ez 
Author-Name: Gerardo Sabater 
Author-X-Name-First: Gerardo 
Author-X-Name-Last: Sabater 
Title: Experimental duopolies under price guarantees 
Abstract:
  In a symmetric differentiated experimental duopoly we test the ability of
 Price Guarantees (PGs) to raise prices above the competitive levels.
 Different types of PGs (&#x2018;aggressive&#x2019; and
 &#x2018;soft&#x2019; price-beating and price-matching) are implemented
 either as an exogenously imposed market rule or as a business strategy.
 Our results show that PGs may lead close to the collusive outcome,
 depending on whether the interaction between duopolists is repeated and
 provided that the guarantee is not of the &#x2018;aggressive&#x2019;
 price-beating type. 
Journal: Applied Economics 
Pages: 15-35 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.568398 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568398 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:15-35




Template-Type: ReDIF-Article 1.0
Author-Name: Joo   Heon Park 
Author-X-Name-First: Joo   Heon 
Author-X-Name-Last: Park 
Author-Name: Douglas   L. MacLachlan 
Author-X-Name-First: Douglas   L. 
Author-X-Name-Last: MacLachlan 
Title: Estimating willingness to pay by risk adjustment mechanism 
Abstract:
  Measuring consumers&#x2019; Willingness To Pay (WTP) without considering
 the level of uncertainty in valuation and the consequent risk premiums
 will result in estimates that are biased toward lower values. This
 research proposes a model and method for correctly assessing WTP in cases
 involving valuation uncertainty. The new method, called Risk Adjustment
 Mechanism (RAM), is presented theoretically and demonstrated empirically.
 It is shown that the RAM outperforms the traditional method for assessing
 WTP, especially in a context of a nonmarket good such as a totally new
 product. 
Journal: Applied Economics 
Pages: 37-46 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.568404 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568404 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:37-46




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos   Pestana Barros 
Author-X-Name-First: Carlos   Pestana 
Author-X-Name-Last: Barros 
Author-Name: Ant&#xF3;nio   Gomes de Menezes 
Author-X-Name-First: Ant&#xF3;nio   Gomes 
Author-X-Name-Last: de Menezes 
Author-Name: Jos頠 Cabral Vieira 
Author-X-Name-First: Jos頠 Cabral 
Author-X-Name-Last: Vieira 
Title: Measurement of hospital efficiency, using a latent class stochastic frontier model 
Abstract:
  This article analyses the technical efficiency of Portuguese hospitals
 from 1997 to 2008 with the latent class frontier model, enabling the
 identification of different segments in the cost frontier. It is found
 that there are three statistically significant segments in the sample,
 leading to the conclusion that no common health policy can be applicable
 to all the hospitals analysed, calling rather for policies conceived for
 each hospital segment identified. The health policy based in the
 identified segments enables a more accurate and cost effective management
 of resources. 
Journal: Applied Economics 
Pages: 47-54 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.579061 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579061 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:47-54




Template-Type: ReDIF-Article 1.0
Author-Name: Constant   I. Tra 
Author-X-Name-First: Constant   I. 
Author-X-Name-Last: Tra 
Title: Nonlinear income effects in random utility models: revisiting the accuracy of the representative consumer approximation 
Abstract:
  This article investigates the implications of nonlinear income effects in
 Random Utility Models (RUM) for measuring general equilibrium welfare
 impacts. A popular approach in applied welfare analysis is to approximate
 the expected compensating variation (cv) for an amenity change as the cv
 of a representative consumer whose indirect utility is given by the
 expected maximum utility. However, this approach can be misleading in the
 case of nonmarginal changes as it implies that changes in income do not
 affect the consumer's choice. In this case the true expected cv can be
 obtained via simulation. Empirical applications to recreational demand
 find that the bias from the representative approach is small. This article
 re-evaluates the accuracy of the representative consumer approximation in
 the context of measuring the general equilibrium welfare impacts of large
 environmental changes. Our findings suggest that, though the
 representative consumer approximation could lead to biased point estimates
 of the expected cv, this bias is overwhelmed by the size of the confidence
 intervals that result from the empirical estimation of household
 preferences. 
Journal: Applied Economics 
Pages: 55-63 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.589807 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589807 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:55-63




Template-Type: ReDIF-Article 1.0
Author-Name: Hugo   J. Far𨀍
Author-X-Name-First: Hugo   J. 
Author-X-Name-Last: Far𨀍
Author-Name: Hugo   M. Montesinos-Yufa 
Author-X-Name-First: Hugo   M. 
Author-X-Name-Last: Montesinos-Yufa 
Author-Name: Daniel   R. Morales 
Author-X-Name-First: Daniel   R. 
Author-X-Name-Last: Morales 
Author-Name: C鳡r   G. Aviles B. 
Author-X-Name-First: C鳡r   G. 
Author-X-Name-Last: Aviles B. 
Author-Name: Osmel Brito-Bigott 
Author-X-Name-First: Osmel 
Author-X-Name-Last: Brito-Bigott 
Title: Does corruption cause encumbered business regulations? An IV approach 
Abstract:
  In this research we attempt to understand the effects of corruption on
 business regulations measured by number of procedures, time and costs
 involved in satisfying governmental requisites. Using Two-Stage-Least
 Squares (2SLS) methods we lessen the problems associated with endogeneity
 and uncovered the existence of a robust, positive, statistically
 significant and quantitatively large direction channel from corruption to
 encumbered business regulations. These results suggest the need to deter
 corruption in order to improve business regulations. The quest to reduce
 corruption worldwide acquires new relevancy given the findings of Djankov
 <italic>et&#xA0;al</italic>. (2006) that countries with simple and
 transparent regulations grow faster. 
Journal: Applied Economics 
Pages: 65-83 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.589814 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589814 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:65-83




Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda 
Author-X-Name-First: Kosei 
Author-X-Name-Last: Fukuda 
Title: Decomposition of new venture growth into firm age, survey period and vintage effects 
Abstract:
  Firm data are accumulated on a yearly basis. In view of the linear
 relationship of firm age&#x2009;+&#x2009;foundation
 year&#x2009;=&#x2009;survey year, the fluctuations of firm data classified
 by age and period cannot be decomposed into age, period and cohort
 (foundation year) effects. Three decomposition methods are briefly
 reviewed and applied to Japanese data on new ventures founded since 1995.
 Regarding sales and employment growth, the age effect is the largest with
 a downward trend, and the cohort effect is negligible. Regarding labour
 productivity, the age effect indicates upward movements, and the cohort
 effect is negligible. The reason of the negligible cohort effect is
 discussed. 
Journal: Applied Economics 
Pages: 85-97 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.589815 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589815 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:85-97




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas   G鲡rd Vaillant 
Author-X-Name-First: Nicolas   G鲡rd 
Author-X-Name-Last: Vaillant 
Author-Name: Fran&#xE7;ois-Charles Wolff 
Author-X-Name-First: Fran&#xE7;ois-Charles 
Author-X-Name-Last: Wolff 
Title: Understanding how experts rate cigars: a &#x2018;havanometric&#x2019; analysis 
Abstract:
  Drawing on data from an annual French guidebook published in 2004, this
 article focuses on the determinants of experts&#x2019; ratings on Cuban
 cigars. We find that high quality cigars are more likely to be recommended
 to more experienced cigar lovers. Both the self-assessed quality and
 recommendation depend on the length and diameter of the cigars, but also
 on more subjective characteristics like number and type of aromas. Results
 from a Fields&#x2019; decomposition show that the quality of cigars is
 much more sensitive to the presence of a defect and number of aromas than
 the experts&#x2019; recommendation, which is more influenced by the rarity
 of cigars. Finally, it is essentially the cigars&#x2019; objective
 characteristics that have an influence on their prices, meaning that
 consumers truly benefit from additional qualitative information when
 reading experts&#x2019; advice and ratings. 
Journal: Applied Economics 
Pages: 99-109 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.595691 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595691 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:99-109




Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨀠 P𨁏livero 
Author-X-Name-First: Mar𨀠 P𨀍
Author-X-Name-Last: Olivero 
Author-Name: Robert Madak 
Author-X-Name-First: Robert 
Author-X-Name-Last: Madak 
Title: Financial integration within Europe and the international transmission of business cycles among industrialized countries 
Abstract:
  We exploit a dataset on financial integration within Europe to answer a
 novel question in the international Real Business Cycle (RBC) literature.
 Does financial integration within Europe matter for the international
 transmission of business cycles between the United States and Europe? We
 find that it does, and that as European countries become more financially
 integrated among themselves, European business cycles start to
 &#x2018;decouple&#x2019; from those in the United States. We show that
 this is true for three macro indicators of economic activity: Gross
 Domestic Product (GDP), consumption and investment, and for five
 alternative measures of the degree of financial integration. We also show
 that the effect of trade linkages becomes insignificant once financial
 factors are accounted for. Our work has interesting policy implications
 since it unveils the importance of further integration in the EU to slow
 down the transmission of aggregate shocks among industrialized nations. 
Journal: Applied Economics 
Pages: 111-122 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.595693 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595693 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:111-122




Template-Type: ReDIF-Article 1.0
Author-Name: N. Winchester 
Author-X-Name-First: N. 
Author-X-Name-Last: Winchester 
Author-Name: R. T. Stefani 
Author-X-Name-First: R. T. 
Author-X-Name-Last: Stefani 
Title: An innovative approach to National Football League standings using bonus points 
Abstract:
  We investigate the inclusion of bonus points in the National Football
 League (NFL) using a prediction model built on league points. Both
 touchdown-based and narrow-loss bonuses are shown to be significant
 determinants of match outcomes. This implies that including bonus points
 in league standings generates a more accurate ranking of teams from best
 to worst than a system that only rewards wins and ties. Our preferred
 system awards four points for a win, two for a tie, one point for scoring
 three or more touchdowns and one point for losing by seven or fewer
 points. Such a system would also make it easier for supporters to identify
 playoff contenders and place importance on otherwise meaningless
 end-of-game plays in some matches, which would increase spectator
 interest. 
Journal: Applied Economics 
Pages: 123-134 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.595694 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595694 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:123-134




Template-Type: ReDIF-Article 1.0
Author-Name: Chin   Hsien Hsieh 
Author-X-Name-First: Chin   Hsien 
Author-X-Name-Last: Hsieh 
Author-Name: Fengyi Lin 
Author-X-Name-First: Fengyi 
Author-X-Name-Last: Lin 
Title: Applying digital analysis to detect fraud: an empirical analysis of US marine industry 
Abstract:
  Firms have tendency to window dress their financial statements by
 reporting earnings to achieve reference points represented by
 <italic>N</italic> &#xD7; 10<italic> -super-k </italic>. Such practice of
 reporting rounded earnings is likely due to (1) firms may believe that
 investors perceive a reported earnings of $1.99 million to be
 significantly less than $2.0 million; and/or (2) contracts between firms
 and stakeholders are likely to express earnings in round numbers. Auditors
 have employed more sophisticated digital analysis such as Benford's law,
 as part of their fraud detection processes. This study investigated the
 window dressing behaviour among firms in the US marine industry. The
 findings of the study suggest that window dressing is a significant
 practice among the marine firms. However, the extent of the pervasiveness
 of such behaviour is less severe among marine firms than among all
 publicly-listed firms in the entire US economy, suggesting that the
 quality of financial statements of marine companies is higher than the
 overall population of public companies. 
Journal: Applied Economics 
Pages: 135-140 
Issue: 1 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.605759 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605759 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:1:p:135-140




Template-Type: ReDIF-Article 1.0
Author-Name: Bedassa Tadesse 
Author-X-Name-First: Bedassa 
Author-X-Name-Last: Tadesse 
Author-Name: Elias   K. Shukralla 
Author-X-Name-First: Elias   K. 
Author-X-Name-Last: Shukralla 
Title: The impact of foreign direct investment on horizontal export diversification: empirical evidence 
Abstract:
  Using data on stocks of Foreign Direct Investment (FDI) from 131
 countries spanning the years 1984 to 2004 and the number of products
 exported by each country, we examine the effect of FDI on horizontal
 export diversification. To quantify the effects, we utilize parametric
 (quantile) and semi-parametric econometric methods. Results from both
 approaches indicate that, in general, an increase in the stock of FDI
 enhances the horizontal diversification of exports. The actual magnitude
 of the effect however, varies greatly across countries depending on the
 existing stock of FDI and stage of diversification, giving rise to an
 almost inverted U-shaped relationship. A further look at our results
 provides useful insights on the circumstances under which FDI may aid or
 inhibit the horizontal expansion of exports. 
Journal: Applied Economics 
Pages: 141-159 
Issue: 2 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.595692 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595692 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:2:p:141-159




Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Mart󹑺-Sola 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Mart󹑺-Sola 
Author-Name: Pedro   J. Garc𫑔eruel 
Author-X-Name-First: Pedro   J. 
Author-X-Name-Last: Garc𫑔eruel 
Author-Name: Pedro Mart󹑺-Solano 
Author-X-Name-First: Pedro 
Author-X-Name-Last: Mart󹑺-Solano 
Title: Corporate cash holding and firm value 
Abstract:
  This study contrasts the effect of cash holding on firm value for a
 sample of US industrial firms during 2001--2007. The study tests
 empirically for the existence of an optimal cash level that maximizes firm
 value. Second, the study analyses whether or not deviations from the
 optimum cash level reduce firm value. The results show a concave relation
 between cash holding and firm value, verifying the existence of an optimum
 level of cash holding. Additionally consistent with the initial analysis,
 deviations above and below optimal cash holding decreases the firm value. 
Journal: Applied Economics 
Pages: 161-170 
Issue: 2 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.595696 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595696 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:2:p:161-170




Template-Type: ReDIF-Article 1.0
Author-Name: Viet   Anh Dang 
Author-X-Name-First: Viet   Anh 
Author-X-Name-Last: Dang 
Title: Testing capital structure theories using error correction models: evidence from the UK, France and Germany 
Abstract:
  We employ an error correction model of leverage to test the trade-off and
 pecking order theories of capital structure for firms in the UK, France
 and Germany. The error correction framework extends the partial adjustment
 model by explicitly modelling changes in target leverage and past
 deviations from such target as determinants of firms&#x2019; dynamic
 leverage adjustment process. We also augment our empirical models to test
 the pecking order theory. Using appropriate and advanced dynamic panel
 data methods, we find that UK, French and German firms adjust towards
 target leverage quickly in both the partial adjustment and error
 correction models, which is consistent with the trade-off theory. We
 further show that the trade-off theory explains these firms&#x2019;
 capital structure decisions better than the pecking order theory in the
 models nesting the two theories. 
Journal: Applied Economics 
Pages: 171-190 
Issue: 2 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597724 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597724 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:2:p:171-190




Template-Type: ReDIF-Article 1.0
Author-Name: Ho-Chuan (River) Huang 
Author-X-Name-First: Ho-Chuan (River) 
Author-X-Name-Last: Huang 
Author-Name: Chih-Chuan Yeh 
Author-X-Name-First: Chih-Chuan 
Author-X-Name-Last: Yeh 
Title: Okun's law in panels of countries and states 
Abstract:
  This article contributes to the empirical literature of Okun's law in
 three respects. First, in contrast to the limited data used in the
 existing studies, we employ two extensive (across countries and across
 states, i.e. within a country) panel data sets to investigate the validity
 of Okun's law. Second, the use of the Pooled Mean Group (PMG) estimator
 permits us not to pre-filter the data as often done in the current
 literature, and can take into account the possibility of cointegration
 between unemployment and output. Third, in addition to the short-run
 relationship or cyclical components between unemployment and output, we
 also estimate the long-run linkage between these two important variables.
 Empirical results show that unemployment and output are long-run
 cointegrated, irrespective of using country- or state-level data.
 Moreover, the unemployment-output linkages are found to be negative and
 highly significant both in the short- and long-run. Our results not only
 confirm the validity of Okun's law (in the short-run) but also point out
 that a similar tradeoff exists in the long run. 
Journal: Applied Economics 
Pages: 191-199 
Issue: 2 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597725 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597725 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:2:p:191-199




Template-Type: ReDIF-Article 1.0
Author-Name: F&#x131;rat Bilgel 
Author-X-Name-First: F&#x131;rat 
Author-X-Name-Last: Bilgel 
Author-Name: Kien   C. Tran 
Author-X-Name-First: Kien   C. 
Author-X-Name-Last: Tran 
Title: The determinants of Canadian provincial health expenditures: evidence from a dynamic panel 
Abstract:
  This article seeks to reveal the magnitude of the income elasticity of
 health expenditure and the impact of non income determinants of health
 expenditure across Canada. For this purpose, panel data on gross domestic
 product, the relative price of health care, the share of publicly funded
 health expenditure, the share of senior population and the life expectancy
 at birth have been used to investigate the determinants of Canadian
 provincial health expenditures over a 28 year period. Dynamic models of
 health expenditure are analysed via Generalized Instrumental Variables
 (GIV) and Generalized Method of Moments (GMM). Results indicate that the
 long run income elasticity of health expenditure is substantially lower
 than one. Thus, health care is far from being a luxury in Canada. 
Journal: Applied Economics 
Pages: 201-212 
Issue: 2 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597726 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597726 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:2:p:201-212




Template-Type: ReDIF-Article 1.0
Author-Name: Shawkat Hammoudeh 
Author-X-Name-First: Shawkat 
Author-X-Name-Last: Hammoudeh 
Author-Name: Mohan Nandha 
Author-X-Name-First: Mohan 
Author-X-Name-Last: Nandha 
Author-Name: Yuan Yuan 
Author-X-Name-First: Yuan 
Author-X-Name-Last: Yuan 
Title: Dynamics of CDS spread indexes of US financial sectors 
Abstract:
  This article examines the Credit Default Swap (CDS) spread index for
 three sectors, banking, financial services and insurance, in the short and
 long run. In the long run, the results show that the index of the
 insurance sector which sells the long term CDS contracts has the highest
 adjustment, while the banking sector is not error correcting. In the short
 run, although the insurance sector CDS spread index has general predictive
 power of all sector CDS spreads, the evidence suggests that the banking
 sector particularly leads the financial services and this in turn leads
 the insurance sector, implying a leading sector CDS pricing role for the
 banking spreads in the short run. The short run sensitivity Generalized
 Impulse Response Function (GIRF) and Generalized Variance Decomposition
 (GVDC) analyses also demonstrate that the sectors&#x2019; credit risk
 responds more to credit events in the banking sector than in the other two
 sectors other than their own over a 50 day horizon. However, the lowest
 cross sector CDS shock impacts in the short run come from the insurance
 sector. These results are useful for regulators wishing to embark on new
 regulations of these financial institutions such as Basel III. 
Journal: Applied Economics 
Pages: 213-223 
Issue: 2 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597727 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597727 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:2:p:213-223




Template-Type: ReDIF-Article 1.0
Author-Name: Heng-Chih Chou 
Author-X-Name-First: Heng-Chih 
Author-X-Name-Last: Chou 
Author-Name: Rim Zaabar 
Author-X-Name-First: Rim 
Author-X-Name-Last: Zaabar 
Author-Name: David Wang 
Author-X-Name-First: David 
Author-X-Name-Last: Wang 
Title: Measuring and testing the long-term impact of terrorist attacks on the US futures market 
Abstract:
  This article investigates the long-term impact of the 11 September 2001
 terrorist attacks on the maturity, volume and open interest effects for
 the S&P 500 index futures contracts. Adopting Chou (2005a, b)'s
 range-based volatility models, this article provides a number of
 interesting results. For the maturity effect, we find evidence for a very
 weak presence in the pre 9/11 period and no presence in the post 9/11
 period, indicating that the maturity effect vanishes completely following
 the event of 9/11. Despite a strong presence of the volume effect in both
 periods, we detect a relative decrease in the presence during the post
 9/11 period. The open interest effect shows a very weak presence during
 the pre 9/11 period and a strong presence during the post 9/11 period,
 indicating a stronger open interest effect following the event of 9/11.
 Furthermore, we show that there is a bi-directional causality relationship
 between futures volatility and trading volume during the pre 9/11 period,
 and that the causality relationship between the two variables becomes
 unidirectional during the post 9/11 period. 
Journal: Applied Economics 
Pages: 225-238 
Issue: 2 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597728 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597728 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:2:p:225-238




Template-Type: ReDIF-Article 1.0
Author-Name: Vincenzo Carrieri 
Author-X-Name-First: Vincenzo 
Author-X-Name-Last: Carrieri 
Author-Name: Marcel Bilger 
Author-X-Name-First: Marcel 
Author-X-Name-Last: Bilger 
Title: Preventive care: underused even when free. Is there something else at work? 
Abstract:
  Explaining the rationale of preventive care underuse is a difficult task
 considering its great benefits for health. Underuse is even more difficult
 to explain in countries like Italy where preventive care can be obtained
 for free. In this article we investigate the determinants of prevention
 underuse with an empirical model based on human capital theory which also
 includes three factors to which little attention has been paid so far:
 role played by the General Practitioner (GP), nonmonetary barriers to
 access and health beliefs. We apply a recursive probit model explaining
 both recourse to prevention and to the GP which allows us to adequately
 measure the effect of the latter on the former and to quantitatively
 compare the determinants of curative and preventive care. We find that the
 GP plays a minor role in prevention use but that nonmonetary barriers to
 access and health beliefs are strong determinants of preventive care
 demand. Finally, we also find support for both Grossman's capital
 depreciation theory (at younger ages) and Cropper's shorter pay-off period
 theory (at older ages). 
Journal: Applied Economics 
Pages: 239-253 
Issue: 2 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597729 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597729 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:2:p:239-253




Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Tuesta 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Tuesta 
Title: The consumption-real exchange rate anomaly: nontraded goods and distribution services 
Abstract:
  In the data, Real Exchange Rates (RERs) tend to move in opposite
 directions with respect to the relative consumption across countries.
 Chari <italic>et al</italic>. (2002) refer to the inability of models to
 replicate the previous stylized fact as the consumption-RER anomaly. In
 this article, it is shown that an International Real Business Cycle (IRBC)
 model, similar to the one proposed by Chari <italic>et&#xA0;al</italic>.
 but extended by considering nontraded goods and an incomplete asset market
 structure, can solve the anomaly. Nontradable goods amplify wealth effects
 arising from the incomplete assets market structure, generating a negative
 co-movement between the RER and relative consumption. Adding Distribution
 Services (DS) improves the performance of the model in some other
 dimensions. In particular, DS help to generate countercyclical net
 exports. 
Journal: Applied Economics 
Pages: 255-271 
Issue: 2 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597730 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:2:p:255-271




Template-Type: ReDIF-Article 1.0
Author-Name: Daehwan Kim 
Author-X-Name-First: Daehwan 
Author-X-Name-Last: Kim 
Author-Name: Jung   Inn Kim 
Author-X-Name-First: Jung   Inn 
Author-X-Name-Last: Kim 
Author-Name: Taeyoon Sung 
Author-X-Name-First: Taeyoon 
Author-X-Name-Last: Sung 
Title: Stock market liberalization and price response: gradualism versus cold turkey 
Abstract:
  We present a simple analytical framework that illustrates the impact of
 two types of market liberalization on stock prices: cold turkey versus
 gradual liberalization. Using this theoretical framework, we show that
 gradual stock market liberalization can have a negative impact on stock
 prices when such gradual liberalization increases uncertainty about future
 stock prices. We examine the liberalization experience of the Korean stock
 market, and find that our analysis could be relevant in that case. 
Journal: Applied Economics 
Pages: 273-285 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597731 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597731 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:273-285




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph   M. Santos 
Author-X-Name-First: Joseph   M. 
Author-X-Name-Last: Santos 
Title: Trading grain now and then: the relative performance of early grain-futures markets 
Abstract:
  Popular hostilities toward futures trading in the United States date to
 the nineteenth century, when many Americans perceived then-nascent grain
 exchanges as little more than gaming parlours that existed to serve the
 illegitimate aspirations of gamblers--a depiction that, if anything,
 compromises the legitimacy of modern futures exchanges. Yet, agricultural
 historians have largely praised the performance of these early markets,
 which they contend were shaped by commercial interests who sought
 successfully to mitigate price risk. In any case, our understanding of how
 early futures markets performed is fragmented, and so such claims remain
 largely unsubstantiated in a quantifiable sense. Even so, futures-price
 data are available for the late-nineteenth century, thanks to the Chicago
 Board of Trade (CBT), which pioneered grain-futures trading in the 1860s.
 In this article, I test and compare the performance of wheat, corn, and
 oats futures prices on the CBT from 1880 to 1890 and from 1997 to 2007. My
 results indicate that grain-futures markets in both periods are efficient
 in the long run. Short-run performance is mixed, and inefficiency is more
 evident in the nineteenth century. On balance, my results support the
 notion that early grain-futures exchanges benefited commercial interests
 and the grain trade more generally. 
Journal: Applied Economics 
Pages: 287-298 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597732 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:287-298




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund 
Author-X-Name-First: Christian 
Author-X-Name-Last: Grund 
Author-Name: Andreas Schmitt 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Schmitt 
Title: Works councils, wages and job satisfaction 
Abstract:
  We investigate the effects of works councils on employees' wages and job
 satisfaction in general and for subgroups with respect to sex and
 occupational status. Making use of a German representative sample of
 employees, we find that employees, who move to a firm with a works
 council, report increases in job satisfaction, but do not receive
 particular wage increases. Especially the job satisfaction of female
 employees is affected by a change in works council status. However, we do
 not find support for the hypothesis that the introduction of a works
 council itself increases wages or job satisfaction for the employees
 staying at the firm. 
Journal: Applied Economics 
Pages: 299-310 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.597735 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597735 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:299-310




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Mart󹑺-Zarzoso 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Mart󹑺-Zarzoso 
Title: The log of gravity revisited 
Abstract:
  This article evaluates the performance of alternative estimation methods
 for gravity models with heteroscedasticity and zero trade values. Both
 problematic issues, recently addressed by Santos Silva and Tenreyro in an
 influential paper, are re-examined here. We use Monte Carlo simulations to
 compare the Pseudo Poisson Maximum Likelihood (PPML) estimator recommended
 by Santos Silva and Tenreyro, a Gamma Pseudo-Maximum-Likelihood (GPML), a
 Nonlinear Least Squares (NLS) estimator and a Feasible Generalized Least
 Squares (FGLS) estimator with more traditional techniques. Additionally,
 estimates of the gravity equation are obtained for three different data
 sets with the abovementioned methods. The results of the simulation study
 indicate that, although the PPML estimator is less affected by
 heteroscedasticity than others are, its performance is similar, in terms
 of bias and SEs, to the FGLS estimator performance, in particular for
 small samples. GPML presents however the lowest bias and SEs in the
 simulations without zero values. The results of the empirical estimations,
 using three different samples containing real data, indicate that the
 choice of estimator has to be made for each specific dataset. It is highly
 recommended to follow a model selection approach using a number of tests
 to select the more appropriate estimator for any application. 
Journal: Applied Economics 
Pages: 311-327 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.599786 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.599786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:311-327




Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Klomp 
Author-X-Name-First: Jeroen 
Author-X-Name-Last: Klomp 
Author-Name: Jakob De Haan 
Author-X-Name-First: Jakob 
Author-X-Name-Last: De Haan 
Title: Do political budget cycles really exist? 
Abstract:
  Most recent cross-country studies on election-motivated fiscal policy
 assume that the data can be pooled. As various tests suggest that our data
 for some 70 democratic countries for the period 1970--2007 cannot be
 pooled, we use the Pooled Mean Group (PMG) estimator to test whether
 Political Budget Cycles (PBCs) exist in our sample. We find that fiscal
 policy is only affected by upcoming elections in the short run. Our
 results suggest that the occurrence of a PBC is conditional on the level
 of development and democracy, government transparency, the country's
 political system, its membership of a monetary union and its degree of
 political polarization. 
Journal: Applied Economics 
Pages: 329-341 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.599787 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.599787 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:329-341




Template-Type: ReDIF-Article 1.0
Author-Name: Alexis Direr 
Author-X-Name-First: Alexis 
Author-X-Name-Last: Direr 
Title: Are betting markets efficient? Evidence from European Football Championships 
Abstract:
  This article investigates the degree of efficiency of the European
 Football online betting market by using odds quoted by 12 bookmakers on 21
 European championships over 11 years. We show that systematically picking
 out odds inferior to a threshold delivers a rate of return of 4.45% if
 best odds are selected across bookmakers and 2.78% if mean odds are used.
 This amounts to backing overwhelmingly favourites whose probability of
 winning exceeds 90%. Our results only exploit information contained in
 odds, are robust to the use of real-time data and different sample periods
 and hold under risk neutrality and expected utility preferences for
 realistic degrees of risk aversion. Transaction costs reduce profitability
 but only for small stake bets. 
Journal: Applied Economics 
Pages: 343-356 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.602010 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.602010 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:343-356




Template-Type: ReDIF-Article 1.0
Author-Name: Peter   H. van der Meer 
Author-X-Name-First: Peter   H. 
Author-X-Name-Last: van der Meer 
Author-Name: Rudi Wielers 
Author-X-Name-First: Rudi 
Author-X-Name-Last: Wielers 
Title: What makes workers happy? 
Abstract:
  This article answers the question what makes workers happy? It does so by
 combining insights from micro-economics, sociology and psychology. Basis
 is the standard utility function of a worker that includes income and
 hours of work and is elaborated with job characteristics. In this way it
 is possible to answer whether part-time workers are happier than full-time
 workers. The utility function is estimated on basis of the European Social
 Survey 2004 which contains all necessary information. The results show
 that workers optimize income and hours of work as predicted by
 micro-economics, but also that part-time workers are happier than
 full-time workers. Challenging work with a high level of autonomy makes
 the workers happy, work pressure makes workers unhappy. Higher educated
 workers are unhappier than lower educated workers, we find a negative
 effect of education, but this is compensated by the type of jobs these
 higher educated hold. 
Journal: Applied Economics 
Pages: 357-368 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.602011 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.602011 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:357-368




Template-Type: ReDIF-Article 1.0
Author-Name: Travis Ng 
Author-X-Name-First: Travis 
Author-X-Name-Last: Ng 
Author-Name: Terence   Tai-Leung Chong 
Author-X-Name-First: Terence   Tai-Leung 
Author-X-Name-Last: Chong 
Author-Name: Man-Tat Siu 
Author-X-Name-First: Man-Tat 
Author-X-Name-Last: Siu 
Author-Name: Benjamin Everard 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Everard 
Title: What determines the price of a racing horse? 
Abstract:
  This article uses the data of 10 auctions from the two largest Australian
 auction houses to study how a racing horse is priced. We ask whether
 bloodline is indeed a determining factor. We find that the track record of
 its parents and siblings are important factors in determining the price of
 a yearling. Moreover, more mature horses and those purchased by foreign
 buyers are generally more expensive. We also show that racing horses sold
 in the flagship auctions are associated with a significant premium. 
Journal: Applied Economics 
Pages: 369-382 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.605553 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605553 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:369-382




Template-Type: ReDIF-Article 1.0
Author-Name:  Suyanto 
Author-X-Name-First:  
Author-X-Name-Last: Suyanto 
Author-Name: Ruhul Salim 
Author-X-Name-First: Ruhul 
Author-X-Name-Last: Salim 
Title: Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence 
Abstract:
  The spillovers of Foreign Direct Investment (FDI) on domestic
 firms&#x2019; performances have been highly debated for many years. This
 article contributes to this debate by analysing spillovers effects on
 technical efficiency of Indonesian pharmaceutical sector using a unique
 unbalanced panel of highly disaggregated (at five-digit International
 Standard Industrial Classification (ISIC)) 210 firms over the period
 1990--1995 (1001 observations). The Stochastic Production Frontier (SPF)
 and the Data Envelopment Analysis (DEA) based on
 <italic>Malmquist</italic> Productivity Indices (MPI) have been used to
 test the spillovers effects of FDI on technical efficiency. The empirical
 results from the SPF show that foreign firms are more efficient than
 domestic competitors, and the presence of the former increases the
 inefficiency of the latter. Similarly the results from the MPI demonstrate
 that FDI has a negative and significant impact on technical efficiency
 changes in domestic competitors, but generate positive spillovers to
 domestic suppliers. 
Journal: Applied Economics 
Pages: 383-395 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.605554 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605554 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:383-395




Template-Type: ReDIF-Article 1.0
Author-Name: Jan   Erik Askildsen 
Author-X-Name-First: Jan   Erik 
Author-X-Name-Last: Askildsen 
Author-Name: Tor   Helge Holm&#xE5;s 
Author-X-Name-First: Tor   Helge 
Author-X-Name-Last: Holm&#xE5;s 
Title: Wages and work conditions as determinants for physicians&#x2019; work decisions 
Abstract:
  It is not uncommon that publicly employed physicians also have income
 from work outside the hospital, sometimes termed moonlighting. There is
 little empirical evidence of such activity. In this article, we
 investigate which factors that may influence physicians&#x2019; choice of
 work between the public hospital sector and elsewhere. An exceptionally
 high wage increase in 1996 for one group of hospital physicians (physician
 assistants) serves as a natural experiment, and we analyse whether wages
 in general and this reform in particular have affected physicians&#x2019;
 external earnings. For physician assistants we find that higher wages at
 public hospitals affect negatively both the decisions to earn income
 externally, and level of income once active. For chief physicians, on the
 other hand, there was no such response to the wage increase. Several
 hospital specific factors representing job specific work characteristics
 also matter for physicians&#x2019; decisions to earn income externally. 
Journal: Applied Economics 
Pages: 397-406 
Issue: 3 
Volume: 45 
Year: 2013 
Month: 1 
X-DOI: 10.1080/00036846.2011.605756 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605756 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:3:p:397-406




Template-Type: ReDIF-Article 1.0
Author-Name: Desiderio Romero-Jord&#xE1;n 
Author-X-Name-First: Desiderio 
Author-X-Name-Last: Romero-Jord&#xE1;n 
Author-Name: Marta   Jorge Garc𫑉n鳠
Author-X-Name-First: Marta   Jorge 
Author-X-Name-Last: Garc𫑉n鳠
Author-Name: Santiago   &#xC1;lvarez Garc𨀍
Author-X-Name-First: Santiago   &#xC1;lvarez 
Author-X-Name-Last: Garc𨀍
Title: The impact of fuel tourism on retailers&#x2019; diesel price in Spanish neighbouring regions 
Abstract:
  Since 1986, car fuel consumption in Spain has been subject to the Special
 Hydrocarbons Tax and the Value Added Tax. In addition, since 2002 regional
 governments have been able to apply a regional excise duty on
 hydrocarbons. This article analyses the impact that such a regional tax
 has on the retailer's diesel price at the border of the province of Lugo
 (in the region of Galicia) and the province of Leon (in the region of
 Castile Leon) (only the former region has the regional tax). Evidence
 shows that variations in the price of diesel at the border of Lugo are of
 the same sign but of lower intensity than at the border of Leon (the
 price--price elasticity is 0.8060). These results suggest that service
 stations located in regions with higher excise duties use their price
 policy to lessen the negative effects generated for fuel tourism. 
Journal: Applied Economics 
Pages: 407-413 
Issue: 4 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.605757 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605757 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:4:p:407-413




Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Gon&#xE7;alves 
Author-X-Name-First: Ricardo 
Author-X-Name-Last: Gon&#xE7;alves 
Author-Name: Pedro   Pita Barros 
Author-X-Name-First: Pedro   Pita 
Author-X-Name-Last: Barros 
Title: Economies of scale and scope in the provision of diagnostic techniques and therapeutic services in Portuguese hospitals 
Abstract:
  This article analyses the provision of auxiliary clinical services that
 are typically carried out within the hospital. We estimate a flexible cost
 function for three of the most important (cost-wise) diagnostic techniques
 and therapeutic services in Portuguese hospitals: Clinical Pathology,
 Medical Imaging, and Physical Medicine and Rehabilitation. Our objective
 in carrying out this estimation is the evaluation of economies of scale
 and scope in the provision of these services. For all services, we find
 evidence of economies of scale and some evidence of economies of scope. We
 also find evidence of diminishing returns to management, whereby larger
 hospitals appear to have surpassed their optimal size. These results have
 important policy implications and can be related to the ongoing discussion
 of where and how should hospitals provide these services. 
Journal: Applied Economics 
Pages: 415-433 
Issue: 4 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.605758 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605758 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:4:p:415-433




Template-Type: ReDIF-Article 1.0
Author-Name: C. Hopp 
Author-X-Name-First: C. 
Author-X-Name-Last: Hopp 
Author-Name: A. Dreher 
Author-X-Name-First: A. 
Author-X-Name-Last: Dreher 
Title: Do differences in institutional and legal environments explain cross-country variations in IPO underpricing? 
Abstract:
  We empirically analyse the determinants of Initial Public Offering (IPO)
 underpricing using panel data for 24 countries over the period 1988--2005.
 Our hypotheses stress the importance of institutional and legal factors in
 explaining cross-country variations. We find evidence that underpricing is
 higher in countries with stronger protection of outside investors,
 suggesting that incumbent managers try to use underpricing as a tool to
 safeguard their private benefits of control when going public. Moreover,
 the results show that underpricing is reduced when stronger law
 enforcement and the availability of accounting information reduce the
 value of private benefits of control. 
Journal: Applied Economics 
Pages: 435-454 
Issue: 4 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.605760 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605760 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:4:p:435-454




Template-Type: ReDIF-Article 1.0
Author-Name: Claude Lopez 
Author-X-Name-First: Claude 
Author-X-Name-Last: Lopez 
Author-Name: Christian   J. Murray 
Author-X-Name-First: Christian   J. 
Author-X-Name-Last: Murray 
Author-Name: David   H. Papell 
Author-X-Name-First: David   H. 
Author-X-Name-Last: Papell 
Title: Median-unbiased estimation in DF-GLS regressions and the PPP puzzle 
Abstract:
  Using median-unbiased estimation based on Augmented Dickey--Fuller (ADF)
 regressions, recent research has questioned the validity of Rogoff's
 &#x2018;remarkable consensus&#x2019; of 3--5 year half-lives of deviations
 from Purchasing Power Parity (PPP). The confidence intervals of these
 half-life estimates, however, are extremely wide, with lower bounds of
 about 1 year and upper bounds of infinity. We extend median-unbiased
 estimation to the Dickey--Fuller Generalized Least Square (DF-GLS)
 regression of Elliott <italic>et&#xA0;al</italic>. (1996). We find that
 combining median-unbiased estimation with this regression has the
 potential to tighten confidence intervals for the half-lives. Using
 long-horizon real exchange rate data, we find that the typical lower bound
 of the confidence intervals for median-unbiased half-lives is just below 3
 years. Thus, while previous confidence intervals for median-unbiased
 half-lives are consistent with virtually anything, our tighter confidence
 intervals are inconsistent with economic models with nominal rigidities as
 candidates for explaining the observed behaviour of real exchange rates
 and move us away from solving the PPP puzzle. 
Journal: Applied Economics 
Pages: 455-464 
Issue: 4 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.605761 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605761 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:4:p:455-464




Template-Type: ReDIF-Article 1.0
Author-Name: J&#xF8;rgen   Juel Andersen 
Author-X-Name-First: J&#xF8;rgen   Juel 
Author-X-Name-Last: Andersen 
Title: The Dutch disease and intergenerational welfare 
Abstract:
  Governments in resource abundant economies face a tradeoff between
 transferring wealth to present generations and saving for future
 generations. Employing an overlapping generations framework with
 endogenous growth, this article analyses the intergenerational welfare
 effects of: (1) a wealth transfer policy where the entire wealth is
 transferred to the generations alive at present; (2) an income transfer
 policy where the wealth is saved and the permanent income of the wealth is
 transferred to all present and future generations, forever. Not
 surprisingly, present generations are unambiguously better off with the
 wealth transfer policy. Less trivially, however, the wealth transfer
 policy can be associated with higher welfare also for future generations.
 The intuition for this result is that while a wealth transfer depresses
 growth only in the periods subsequent to the transfer, income transfers
 constitute a permanent drag on growth. Perhaps counter to the na&#xEF;ve
 intuition, the policy of saving the wealth and distributing the permanent
 income to all present and future generations is less beneficial for the
 future generations if the real return to saving is high. 
Journal: Applied Economics 
Pages: 465-476 
Issue: 4 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.605762 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:4:p:465-476




Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Khamis 
Author-X-Name-First: Melanie 
Author-X-Name-Last: Khamis 
Title: Does the minimum wage have a higher impact on the informal than on the formal labour market? Evidence from quasi-experiments 
Abstract:
  This article investigates a puzzle in the literature on labour markets in
 developing countries: labour legislations not only have an impact on the
 formal labour market but also an impact on the informal sector. It has
 even been argued that the impact on the informal sector in the case of the
 minimum wage is stronger than on the formal sector. Using
 quasi-experiments of minimum wage changes and thereby exploiting
 geographical variation of the minimum wage bite, I find evidence for this
 hypothesis. Informal workers, workers without social security
 contribution, experienced significant wage increases when the minimum wage
 was raised while formal workers did not. This result highlights that
 noncompliance with one labour legislation, the social security
 contribution, does not necessarily imply noncompliance to other labour
 laws such as the minimum wage. 
Journal: Applied Economics 
Pages: 477-495 
Issue: 4 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.605763 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605763 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:4:p:477-495




Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Baglioni 
Author-X-Name-First: Angelo 
Author-X-Name-Last: Baglioni 
Author-Name: Luca Colombo 
Author-X-Name-First: Luca 
Author-X-Name-Last: Colombo 
Title: The efficiency view of corporate boards: theory and evidence 
Abstract:
  We build a model in which corporate governance allows for the adoption of
 an institution acting as a mechanism to control agency problems. Our model
 predicts that the incentive to adopt such an institution is decreasing in
 ownership concentration and increasing in free cash flow. Testing our
 theoretical model by means of a sample of 157 Italian listed companies
 over the period 2004--2007, we find that board composition favours
 independent members in firms with a large free cash flow, and executive
 members in firms with high ownership concentration, supporting the view of
 governance as a way to limit agency costs. 
Journal: Applied Economics 
Pages: 497-510 
Issue: 4 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.605764 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605764 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:4:p:497-510




Template-Type: ReDIF-Article 1.0
Author-Name: Peter B&#xF6;nisch 
Author-X-Name-First: Peter 
Author-X-Name-Last: B&#xF6;nisch 
Author-Name: Philipp Gaffert 
Author-X-Name-First: Philipp 
Author-X-Name-Last: Gaffert 
Author-Name: Joachim Wilde 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Wilde 
Title: The impact of skills on remigration flows 
Abstract:
  More than 10 years after the seminal paper by Borjas and Bratsberg
 (1996), modelling the impact of skills on remigration, the empirical
 evidence on that theory is still mixed. Our article is to shed light on
 that issue. Using the German Socio-Economic Panel (GSOEP) we test two
 hypotheses derived from Borjas and Bratsberg (1996) while allowing for
 endogeneity of host country-specific capital. Our results give strong
 support for their theory. Additionally a sensitivity analysis shows that
 the insignificance of education in previous studies is due to the test
 design conducted and cannot be interpreted as falsification of Borjas and
 Bratsberg's (1996) theory. 
Journal: Applied Economics 
Pages: 511-524 
Issue: 4 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.605765 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605765 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:4:p:511-524




Template-Type: ReDIF-Article 1.0
Author-Name: Hal   W. Snarr 
Author-X-Name-First: Hal   W. 
Author-X-Name-Last: Snarr 
Title: Was it the economy or reform that precipitated the steep decline in the US welfare caseload? 
Abstract:
  Objectives of the 1996 overhaul of the US welfare system included
 reducing dependency, raising employment and de-incentivizing
 out-of-wedlock fertility. Using public use state-level panel data from
 1990 to 2005, I analyse how state implementation of welfare reform
 simultaneously affects the caseload, employment and out-of-wedlock births
 (henceforth, Temporary Assistance for Needy Families (TANF) objectives).
 Because endogeneity and simultaneity could not be rejected, I use
 Three-Stage Least Squares (3SLS) method. Results indicated that most of
 the steep decline in the caseload is attributed to welfare reform, while
 the economy's overall effect paled in comparison. However, lagged and
 contemporaneous unemployment individually ranked second and third behind
 the Hispanic share of state population. The conservative tilt over the
 period studied ranked forth, followed in declining order by full family
 sanctions, Earned Income Tax Credit (EITC) payments, time limits (lagged
 by length), access to abortion clinics, lump-sum TANF diversion payments,
 and TANF benefit payments. Findings also suggest that policy does not
 always work as intended: caseloads are found to be higher in states that
 have highly regarded family formation and job retention TANF programs; and
 EITC payments are associated with lower <italic>not</italic> higher
 caseloads. The most compelling finding in this study is that low-income
 families likely turn <italic>first</italic> to unemployment insurance and
 <italic>then</italic> to TANF assistance. 
Journal: Applied Economics 
Pages: 525-540 
Issue: 4 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.607135 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.607135 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:4:p:525-540




Template-Type: ReDIF-Article 1.0
Author-Name: Todd   C. Neumann 
Author-X-Name-First: Todd   C. 
Author-X-Name-Last: Neumann 
Title: The effect of drinking and smoking on the labour market outcomes of low-income young adults 
Abstract:
  Among adults the causal &#x2018;drinking bonus&#x2019; and
 &#x2018;smoking penalty&#x2019; have been estimated to be as large as 12%
 and 24%, respectively. The magnitudes of these effects compare in size
 with many active labour market programs targeted at low-income young
 adults. This article extends the literature by examining these
 relationships in such a group. Somewhat surprisingly the data indicate
 that just as in the greater population young drinkers have more favourable
 labour market outcomes than nondrinkers. However, when a fixed-effects
 approach is used to identify causal impacts there is no evidence that
 drinking has a positive impact on labour market outcomes and some evidence
 for negative returns to drinking. The smoking penalty is estimated to be
 much smaller among this group and not statistically significant. Finally,
 estimates suggest that the observed correlations between consumption and
 labour market outcomes are biased by unobserved characteristics of the
 individual as well as unobservables that change over time that are likely
 causing the treatment decision. 
Journal: Applied Economics 
Pages: 541-553 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.579063 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579063 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:541-553




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Da Silva 
Author-X-Name-First: Sergio 
Author-X-Name-Last: Da Silva 
Author-Name: Dinor&#xE1; Baldo 
Author-X-Name-First: Dinor&#xE1; 
Author-X-Name-Last: Baldo 
Author-Name: Raul Matsushita 
Author-X-Name-First: Raul 
Author-X-Name-Last: Matsushita 
Title: Biological correlates of the Allais paradox 
Abstract:
  We conducted a questionnaire study with student subjects to look for
 explicit correlations between selected biological characteristics of the
 subjects and manifestation of the Allais paradox in the pattern of their
 choices between sets of two pairs of risky prospects. We found that
 particular characteristics, such as gender, menstrual cycle, mother's age
 at delivery, parenthood, second- to fourth-digit ratio, perceived negative
 life events, and emotional state, can be related to the paradox. Women,
 particularly when not menstruating, are less susceptible to the paradox.
 Those born to not-too-young mothers are also less prone to the paradox.
 The same holds true for men who have fathered children and had been
 exposed to high levels of prenatal testosterone, people who had
 experienced many negative life events, and those who were anxious,
 excited, aroused, happy, active, or fresh at the time of the experiment.
 Further, left-handers and atheists may be less inclined to display the
 paradox. 
Journal: Applied Economics 
Pages: 555-568 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.607133 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.607133 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:555-568




Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Lawrenz 
Author-X-Name-First: Jochen 
Author-X-Name-Last: Lawrenz 
Title: Time-series properties of the dividend--price ratio with social dynamics 
Abstract:
  We model an exchange economy where a finite number of standard identical
 agents interact locally and analyse the time-series properties of the
 simulated dividend--price ratio <italic>dp</italic> <sub>
 <italic>t</italic> </sub>. Our results document that a sufficient degree
 of social dynamics induces high persistence in <italic>dp</italic> <sub>
 <italic>t</italic> </sub> which leads to the failure to reject the null of
 a unit root, as well as the failure to reject the null that dividends and
 prices are not cointegrated. At the same time, we find that returns are
 not significantly autocorrelated, thus, being consistent with weak-form
 market efficiency. Finally, we document that although <italic>dp</italic>
 <sub> <italic>t</italic> </sub> is highly persistent, econometric tests
 may still find predictability of future returns by current dividend--price
 ratios. 
Journal: Applied Economics 
Pages: 569-579 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.607134 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.607134 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:569-579




Template-Type: ReDIF-Article 1.0
Author-Name: Roxana Radulescu 
Author-X-Name-First: Roxana 
Author-X-Name-Last: Radulescu 
Author-Name: Martin Robson 
Author-X-Name-First: Martin 
Author-X-Name-Last: Robson 
Title: Does labour market flexibility matter for investment? A study of manufacturing in the OECD 
Abstract:
  This study examines whether a more flexible labour market -- defined here
 in terms of the strictness of labour regulations regarding the flexibility
 of employers to adjust levels of employment in response to changing
 economic conditions -- helps to promote a higher level of fixed capital
 formation in an economy. Theory generates ambiguous predictions concerning
 the sign of the relationship between investment and the labour market
 regulation regarding hiring and firing workers, although a positive
 relationship may be expected. Using an index of labour market regulation
 compiled from surveys of business executives in 19 Organization for
 Economic Co-operation and Development (OECD) economies, an econometric
 analysis is carried out to examine the effects of labour market
 flexibility on the level of investment in the manufacturing sector. The
 findings support the proposition that freeing-up regulatory constraints on
 employers&#x2019; use of labour helps to create a more favourable
 environment for investment. 
Journal: Applied Economics 
Pages: 581-592 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.607633 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.607633 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:581-592




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Yilmazkuday 
Title: Inflation targeting, flexible exchange rates and inflation convergence 
Abstract:
  Using a disaggregated level Consumer Price Index (CPI) data, this article
 compares convergence properties of regional inflation rates in a small
 open economy, Turkey, between pre-inflation-targeting and
 inflation-targeting periods, where the latter also corresponds to a
 flexible exchange rate regime. It is found that during the
 inflation-targeting period, Turkish regional inflation rates have
 converged to each other in terms of CPI groups with relatively nontradable
 components, while they have diverged from each other in terms of CPI
 groups with relatively tradable components. Since a common and sound
 monetary policy among the regions of a country is supposed to have a
 convergence effect on regional inflation rates according to the
 conventional wisdom, the results for CPI groups with relatively tradable
 components require further attention and have significant policy
 implications, especially for inflation-targeting countries using flexible
 exchange rate regimes. 
Journal: Applied Economics 
Pages: 593-603 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.608642 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:593-603




Template-Type: ReDIF-Article 1.0
Author-Name: Wai   Mun Fong 
Author-X-Name-First: Wai   Mun 
Author-X-Name-Last: Fong 
Title: Time diversification under loss aversion: a bootstrap analysis 
Abstract:
  We examine the problem of time diversification from the viewpoint of
 prospect theory investors. We use a block bootstrap approach to generate
 returns of US stocks and Treasury bills for time horizons ranging from 1
 year to 20 years. On average, value functions computed using these
 bootstrapped returns are mainly positive and increase monotonically with
 the time horizon. The strategy that yields the highest average value
 function is the one that buys and holds an all-equity portfolio for 20
 years. In contrast, mean-variance optimal portfolios are more
 conservative, with the optimal proportion of the portfolio invested in
 stocks declining with time horizon. Our results suggest that time
 diversification ought to be viewed more favourably by prospect theory
 investors than by mean-variance investors. 
Journal: Applied Economics 
Pages: 605-610 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.608643 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:605-610




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Faff 
Author-X-Name-First: Robert 
Author-X-Name-Last: Faff 
Author-Name: Yew-Kee Ho 
Author-X-Name-First: Yew-Kee 
Author-X-Name-Last: Ho 
Author-Name: Weiling Lin 
Author-X-Name-First: Weiling 
Author-X-Name-Last: Lin 
Author-Name: Chee-Meng Yap 
Author-X-Name-First: Chee-Meng 
Author-X-Name-Last: Yap 
Title: Diminishing marginal returns from R&D investment: evidence from manufacturing firms 
Abstract:
  This study analyses the association between R&D Investment (RDI) and
 growth opportunities and show that there exists diminishing marginal
 returns in manufacturing firms. Extant literature has found that besides
 R&D investment, systematic risk, financial leverage and complementary
 asset investment are also associated with growth opportunities.
 Accordingly, we employ structural equation modelling to simultaneously
 estimate both a direct influence of RDI as well as indirect influences of
 RDI on growth opportunities via these three mediating effects. We find
 that the direct effect of incremental RDI on growth opportunities is
 independent of R&D intensity. Instead, the heterogeneous effects of RDI on
 systematic risk, financial leverage and complementary asset investment
 across firms with different R&D intensity level accounts for the
 diminishing marginal returns to R&D investment. We specifically observe
 that the greatest indirect effect is via the financial leverage of the
 firm. This study shows the importance of accounting for the
 interdependencies in R&D investment. 
Journal: Applied Economics 
Pages: 611-622 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.608644 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608644 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:611-622




Template-Type: ReDIF-Article 1.0
Author-Name: George   B. Tawadros 
Author-X-Name-First: George   B. 
Author-X-Name-Last: Tawadros 
Title: The information content of the Reserve Bank of Australia's inflation forecasts 
Abstract:
  In this article, the inflation forecasts produced by the Reserve Bank of
 Australia (RBA) and that generated by private forecasters, are used to
 assess whether the Reserve Bank possesses information about inflation that
 the private sector does not have. The results show that the Reserve Bank
 inflation forecasts embody useful predictive information about inflation,
 beyond that contained in private forecasts, over the recent inflation
 targeting period. 
Journal: Applied Economics 
Pages: 623-628 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.608646 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:623-628




Template-Type: ReDIF-Article 1.0
Author-Name: James   J. Forest 
Author-X-Name-First: James   J. 
Author-X-Name-Last: Forest 
Author-Name: Paul Turner 
Author-X-Name-First: Paul 
Author-X-Name-Last: Turner 
Title: Alternative estimators of cointegrating parameters in models with nonstationary data: an application to US export demand 
Abstract:
  This article presents Monte Carlo simulations which compare the empirical
 performance of two alternative single equation estimators of the
 equilibrium parameters in a dynamic relationship. The estimators
 considered are Stock and Watson's Dynamic Ordinary Least Squares (DOLS)
 estimator and Bewley's transformation of the general autoregressive
 distributed lag model. The results indicate that the Bewley transformation
 produces a lower mean-square error as well as superior serial correlation
 properties even with lower truncation lags for the lagged variables
 included in the estimation equation. An application is then provided which
 examines the nature of the equilibrium relationship between aggregate US
 exports, world trade and the US real exchange rate. This confirms that
 estimation of the equilibrium parameters of this relationship by the
 Bewley transformation produces results which are superior to estimation by
 DOLS. 
Journal: Applied Economics 
Pages: 629-636 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.608647 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608647 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:629-636




Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani 
Author-X-Name-First: Abbas 
Author-X-Name-Last: Valadkhani 
Author-Name: Charles Harvie 
Author-X-Name-First: Charles 
Author-X-Name-Last: Harvie 
Author-Name: Indika Karunanayake 
Author-X-Name-First: Indika 
Author-X-Name-Last: Karunanayake 
Title: Global output growth and volatility spillovers 
Abstract:
  This article examines discernable patterns of real Gross Domestic Product
 (GDP) growth co-movements across 29 countries, using consistent time
 series data (1912--2008). Of these countries, only 12 are found to form
 three statistically significant groupings (i.e. G6-six Organization for
 Economic Co-operation and Development (OECD) European countries, G4-four
 Anglo-Saxon countries, and G2-two major Asian countries). One may then
 conclude that, <italic>inter alia</italic>, geographical proximity,
 cultural ties, and the level of socio-economic and financial ties among
 countries determine the global systematic co-movements of growth rates.
 Our results indicate that any recession in the US initially engulfs other
 Anglo-Saxon countries as well as G6 and G2 countries, before exerting its
 adverse knock-on effects to the rest of the world. A Multivariate
 Generalized Autoregressive Conditional Heteroscedasticity (MGARCH) model
 is also used to examine the transmission of GDP growth across these three
 groups and their corresponding volatility spillovers. We find significant
 bi-directional cross-mean spillovers between the G4 and G6 blocs. In terms
 of cross-volatility spillovers, the estimated persistence varies from a
 maximum 0.959 (G4--G6) to a minimum of 0.832 (G2--G4). 
Journal: Applied Economics 
Pages: 637-649 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.608648 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608648 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:637-649




Template-Type: ReDIF-Article 1.0
Author-Name: Young   Jun Kim 
Author-X-Name-First: Young   Jun 
Author-X-Name-Last: Kim 
Author-Name: George Clarke 
Author-X-Name-First: George 
Author-X-Name-Last: Clarke 
Title: Determinants of inter-firm technology licensing in the EU 
Abstract:
  This article investigates the determinants of technology licensing,
 focusing on how country-specific characteristics affect technology
 holders&#x2019; incentives to sell their proprietary technologies through
 licensing alliances. An empirical examination of licensing is done using a
 unique panel data set of licensing transactions involving companies in the
 EU. The strength of Intellectual Property Rights (IPR) protection, the
 degree of economic freedom, the level of country risk, and the number of
 patent granted in the country are found to be important determinants of
 inter-firm technology licensing. In addition, firms with prior independent
 experience as a licensor and public companies tend to license technology
 more. 
Journal: Applied Economics 
Pages: 651-661 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610746 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610746 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:651-661




Template-Type: ReDIF-Article 1.0
Author-Name: Dorrit Posel 
Author-X-Name-First: Dorrit 
Author-X-Name-Last: Posel 
Author-Name: Daniela Casale 
Author-X-Name-First: Daniela 
Author-X-Name-Last: Casale 
Title: The relationship between sex ratios and marriage rates in South Africa 
Abstract:
  We investigate the relationship between alternative definitions of sex
 ratios and marriage outcomes among African and white women in South
 Africa. In contrast to marriages among whites, African marriages in South
 Africa traditionally have involved the payment of bridewealth (or
 <italic>ilobolo</italic>) by a husband to the prospective wife's family.
 Using matched data from the 2001 Population Census and the South African
 Labour Force Surveys, we find that among Africans, both the quantity and
 quality of unmarried men relative to women in local marriage markets are
 significant predictors of marriage. However, economic-based measures of
 marriageability have a larger effect on marriage outcomes than simple sex
 ratios. These findings are consistent with the argument that bridewealth
 payments act as a financial constraint to marriage among African couples,
 raising the marriageability criteria of men. In contrast, we find mostly
 insignificant results for the relationship between sex ratios and marriage
 outcomes among white women. 
Journal: Applied Economics 
Pages: 663-676 
Issue: 5 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610749 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610749 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:5:p:663-676




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brooks 
Author-X-Name-First: Robert 
Author-X-Name-Last: Brooks 
Author-Name: Edwyna Harris 
Author-X-Name-First: Edwyna 
Author-X-Name-Last: Harris 
Author-Name: Yovina Joymungul 
Author-X-Name-First: Yovina 
Author-X-Name-Last: Joymungul 
Title: Price clustering in Australian water markets 
Abstract:
  The finding of clustering in financial prices on particular digits is
 common across a broad range of financial markets. This article explores
 whether price clustering is also present in the case of the weekly market
 for seasonal water in rural Victoria, Australia. We find a similar degree
 of clustering in the seasonal water market. This suggests that the trading
 activities of the market produce characteristics that are similar to more
 sophisticated and deeper financial markets. 
Journal: Applied Economics 
Pages: 677-685 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610747 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610747 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:677-685




Template-Type: ReDIF-Article 1.0
Author-Name: Federico Biagi 
Author-X-Name-First: Federico 
Author-X-Name-Last: Biagi 
Author-Name: Danilo Cavapozzi 
Author-X-Name-First: Danilo 
Author-X-Name-Last: Cavapozzi 
Author-Name: Raffaele Miniaci 
Author-X-Name-First: Raffaele 
Author-X-Name-Last: Miniaci 
Title: Employment transitions and computer use of older workers 
Abstract:
  Our empirical analysis studies the impact of computer use on out of
 employment transitions of older workers, disentangling the effect of using
 a Personal Computer (PC) at work from that of being PC literate. Data are
 drawn from the 2000, 2002 and 2004 waves of the Bank of Italy
 <italic>Survey on Household Income and Wealth</italic>. We provide
 empirical evidence that, even controlling for a wide set of covariates,
 older employees who use a PC at work have a higher probability of
 remaining employed in the future. However, our results also indicate that,
 once PC literacy is controlled for, the use of a PC at work decreases only
 marginally the risk of becoming not employed (i.e. the effect is smaller
 than the one registered when we do not control for PC literacy). 
Journal: Applied Economics 
Pages: 687-696 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610748 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610748 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:687-696




Template-Type: ReDIF-Article 1.0
Author-Name: Teemu Kautonen 
Author-X-Name-First: Teemu 
Author-X-Name-Last: Kautonen 
Author-Name: Marco van Gelderen 
Author-X-Name-First: Marco 
Author-X-Name-Last: van Gelderen 
Author-Name: Erno   T. Tornikoski 
Author-X-Name-First: Erno   T. 
Author-X-Name-Last: Tornikoski 
Title: Predicting entrepreneurial behaviour: a test of the theory of planned behaviour 
Abstract:
  This article contributes to the occupational choice literature pertaining
 to entrepreneurship by applying the Theory of Planned Behaviour (TPB) to
 predict entrepreneurial behaviour. Originating from social psychology, the
 TPB posits that intention, a function of behavioural beliefs, is a
 significant predictor of subsequent behaviour. In spite of an established
 stream of scholarship explaining the formation of entrepreneurial
 intentions, empirical research has not yet employed longitudinal data to
 examine whether the intention to start a business measured at one point of
 time translates into subsequent entrepreneurial behaviour. This article
 provides a full test of the TPB in the prediction of business start-up
 intentions and subsequent behaviour based on two-wave survey data (2006
 and 2009) from the working-age population in Finland. The econometric
 results support the predictions outlined in the TPB: attitude, perceived
 behavioural control and subjective norms are significant predictors of
 entrepreneurial intention; and intention and perceived behavioural control
 are significant predictors of subsequent behaviour. This research thus
 provides support to the application of the TPB and the concept of
 behavioural intention to understand the emergence of complex economic
 behaviour such as entrepreneurship prior to the onset of any observable
 action. 
Journal: Applied Economics 
Pages: 697-707 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610750 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610750 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:697-707




Template-Type: ReDIF-Article 1.0
Author-Name: H&#xE5;kan Eggert 
Author-X-Name-First: H&#xE5;kan 
Author-X-Name-Last: Eggert 
Author-Name: Ragnar Tveter&#xE5;s 
Author-X-Name-First: Ragnar 
Author-X-Name-Last: Tveter&#xE5;s 
Title: Productivity development in Icelandic, Norwegian and Swedish fisheries 
Abstract:
  This article analyses the Total Factor Productivity (TFP) performance of
 fisheries in Iceland, Norway and Sweden during the period 1973 to 2003. We
 measure TFP growth using real gross value added as output and capital
 input, labour input and a stock input index based on the major fish
 stocks. In developed neighbouring countries, we expect rapid diffusion of
 fishing technology innovations contributing to productivity convergence.
 In addition, innovations in the public regulation and the industrial
 organization may also have influenced productivity growth during the
 period. We find that Iceland had the highest annual TFP growth. Accounting
 for stock changes, it amounts to 3%, while the corresponding figures for
 Sweden and Norway are 2.8% and 0.8%, respectively. Despite best practice
 fishing technologies being widely available, we find no evidence of
 productivity convergence among the three countries. 
Journal: Applied Economics 
Pages: 709-720 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610751 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610751 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:709-720




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh   Kumar Narayan 
Author-X-Name-First: Paresh   Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Stephan Popp 
Author-X-Name-First: Stephan 
Author-X-Name-Last: Popp 
Title: Size and power properties of structural break unit root tests 
Abstract:
  In this article, we compare the small sample size and power properties of
 a newly developed endogenous structural break unit root test of Narayan
 and Popp (NP, 2010) with the existing two break unit root tests, namely
 the Lumsdaine and Papell (LP, 1997) and the Lee and Strazicich (LS, 2003)
 tests. In contrast to the widely used LP and LS tests, the NP test chooses
 the break date by maximizing the significance of the break dummy
 coefficient. Using Monte Carlo simulations, we show that the NP test has
 better size and high power, and identifies the structural breaks
 accurately. Power and size comparisons of the NP test with the LP and LS
 tests reveal that the NP test is significantly superior. 
Journal: Applied Economics 
Pages: 721-728 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610752 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610752 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:721-728




Template-Type: ReDIF-Article 1.0
Author-Name: Philip   Inyeob Ji 
Author-X-Name-First: Philip   Inyeob 
Author-X-Name-Last: Ji 
Title: Do country-specific shocks matter? Evidence from Australia and high income countries 
Abstract:
  A stylized fact of global upward trend in domestic-world output ratio for
 major small open economies is recognized in comparison with Australia's
 dichotomous experience with the ratio. This fact is used to shed light on
 the importance of country-specific shocks for small open economies using a
 simple real business cycle model. While it has been previously found that
 country-specific shocks are more significant source of business cycle
 fluctuations than worldwide shocks for Australia before the 1990s, this
 article suggests that the country-specific shocks may have become an
 important driver of output growth only in the early 1990s for Australia. 
Journal: Applied Economics 
Pages: 729-739 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610753 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610753 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:729-739




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Rubb 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Rubb 
Title: Overeducation, undereducation and asymmetric information in occupational mobility 
Abstract:
  Due to short-term asymmetric information, overeducated and undereducated
 workers are shown to have different optimal strategies in seeking upward
 occupational mobility into their next positions. Undereducated workers
 typically have other human capital strengths, but these strengths are not
 marketable to outsiders. Overeducated workers typically have other human
 capital weaknesses that are not apparent to outsiders while their excess
 schooling is marketable in labour markets with dynamic asymmetric
 information. This article presents empirical evidence showing that job
 tenure increases the probability of upward occupational mobility more if
 individuals are undereducated. Moreover, the probability of finding upward
 occupational mobility is increased by overeducated workers engaging in
 firm switching. This article also validates prior empirical studies
 finding overeducated workers more likely to self report engaging in firm
 switching activities and more likely to experience upward occupational
 mobility than others. 
Journal: Applied Economics 
Pages: 741-751 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610754 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610754 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:741-751




Template-Type: ReDIF-Article 1.0
Author-Name: Jeng-Yan Tsai 
Author-X-Name-First: Jeng-Yan 
Author-X-Name-Last: Tsai 
Author-Name: Jyh-Horng Lin 
Author-X-Name-First: Jyh-Horng 
Author-X-Name-Last: Lin 
Title: Optimal bank interest margin and default risk in equity returns under the return to domestic retail with structural breaks 
Abstract:
  A retrenchment in crossborder credit is under way, the product of both
 market forces and political pressure on international banks to lend at
 home (Economist, 2009). In addition, banks, particularly the largest, have
 also dramatically expanded their retail banking operations over the past
 few years (Hirtle and Stiroh, 2007). Our goal, in this article, is to
 study the effects of default risk on equity returns through bank interest
 margin management under a renewed focus on domestic retail banking, a
 trend often attributed to the stability of banking activities.
 Specifically, this article explores the determinants of optimal bank
 interest margins based on an option-based firm-theoretical model with
 multiple sources of structural breaks due to political pressure. The model
 demonstrates how capital regulation and political pressure on foreign
 lending return and risk conditions jointly determine the optimal bank
 interest margin decision. We show that a more stringent capital
 requirement is linked with lower equity return, but higher default risk of
 the bank in the return to domestic retail banking. An increased focus on
 the political pressure on foreign lending return is linked with higher
 equity return and default risk of the bank. It is also showed that an
 increased focus on the political pressure on foreign lending risk
 decreases the bank's equity return and default risk. We conclude that the
 return to domestic retail banking may be a relatively stable activity when
 the political pressure decision impacts only the expected risk of the
 bank's foreign lending and not the return. 
Journal: Applied Economics 
Pages: 753-764 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.610755 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610755 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:753-764




Template-Type: ReDIF-Article 1.0
Author-Name: Shao-Chi Chang 
Author-X-Name-First: Shao-Chi 
Author-X-Name-Last: Chang 
Author-Name: Ming-Tse Tsai 
Author-X-Name-First: Ming-Tse 
Author-X-Name-Last: Tsai 
Title: The effect of prior alliance experience on acquisition performance 
Abstract:
  Information asymmetry usually results in acquiring a target where
 post-acquisition performance is often disappointing. In this study, we
 examine whether previous bidder--target alliances mitigate the negative
 effect of information asymmetry. Further, in cases when the target firms
 in an acquisition are from the high technology or service industries or
 privately held firms, whereby the firms are composed of unique knowledge,
 intangible assets and less disclosed information, respectively, we test
 whether there are significantly more acquisitions when prior
 bidder--target alliances exist, as it is assumed that these alliances
 reduce the level of information asymmetry. We find on average the post
 acquisition stock performance is better when the purchasing firm acquires
 a prior alliance partner. Furthermore, when acquiring privately held
 target firms, the target firms are more likely to be previous alliance
 partners. Finally, when the target firms are &#x2018;more informed&#x2019;
 (i.e. high technology, service or privately held firms), the post
 acquisition performance is disappointing. However, bidder--target
 alliances reduce the amount of value destroyed. 
Journal: Applied Economics 
Pages: 765-773 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.613767 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613767 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:765-773




Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Lin Tao 
Author-X-Name-First: Hung-Lin 
Author-X-Name-Last: Tao 
Author-Name: Shih-Yung Chiu 
Author-X-Name-First: Shih-Yung 
Author-X-Name-Last: Chiu 
Title: Income growth, redistribution, and subjective well-being in Taiwan -- a simulation study 
Abstract:
  This study simulates different income growth and income distribution
 scenarios in Taiwan in 2001, and examines how social happiness and
 people's happiness at different income levels change. Without taking
 downward comparison into consideration, the simulation supports income
 redistribution in favour of the poor. When the downward comparison is
 taken into consideration, the simulation does not support any kind of
 income redistribution. The present study investigates the relationship
 between income inequality and subjective well-being, and shows that a
 change in the Gini index can be interpreted in terms of a shift in
 revealed subjective well-being. 
Journal: Applied Economics 
Pages: 775-791 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.613768 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613768 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:775-791




Template-Type: ReDIF-Article 1.0
Author-Name: Roland Craigwell 
Author-X-Name-First: Roland 
Author-X-Name-Last: Craigwell 
Author-Name: Troy Lorde 
Author-X-Name-First: Troy 
Author-X-Name-Last: Lorde 
Author-Name: Winston Moore 
Author-X-Name-First: Winston 
Author-X-Name-Last: Moore 
Title: Fiscal policy and the duration of financial crises 
Abstract:
  Financial systems across the world have all come under pressure due to
 the on-going financial crisis. One of the most often asked questions
 during a collapse is how long and how deep will the decline be as well as
 what policy initiatives can be employed to shorten the recession. This
 study estimates a model of the duration of financial crises in an attempt
 to identify whether fiscal policy can reduce the time to recovery. The
 results suggest that fiscal shocks, which could provoke an overreaction on
 the part of markets, tend to lengthen crisis duration. Significant
 nonlinear effects of government spending are also reported in relation to
 trade openness and financial openness. 
Journal: Applied Economics 
Pages: 793-801 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.613769 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613769 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:793-801




Template-Type: ReDIF-Article 1.0
Author-Name: Giap   V. Nguyen 
Author-X-Name-First: Giap   V. 
Author-X-Name-Last: Nguyen 
Author-Name: Curtis   M. Jolly 
Author-X-Name-First: Curtis   M. 
Author-X-Name-Last: Jolly 
Title: A cointegration analysis of seafood import demand in Caribbean countries 
Abstract:
  Cointegration analysis and error correction model are used to estimate
 seafood import demand for selected Caribbean countries. The results show
 that seafood import is price elastic. Exchange rate has a negative effect,
 while Gross Domestic Product (GDP) and tourism have positive effects on
 seafood imports. Import and domestic production do not have a short run
 causal relationship. The increase in Caribbean seafood imports is
 primarily due to decreasing import price and increasing domestic demand.
 The decline of domestic fisheries production has other causes than import
 competition. However, imports and domestic production have a negative long
 run equilibrium relationship. Tariff and production expansion policies
 both help producers, but tariff may reduce total economic surplus, while
 supply expansion can increase total economic surplus. 
Journal: Applied Economics 
Pages: 803-815 
Issue: 6 
Volume: 45 
Year: 2013 
Month: 2 
X-DOI: 10.1080/00036846.2011.613771 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613771 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:6:p:803-815




Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Aloy 
Author-X-Name-First: Marcel 
Author-X-Name-Last: Aloy 
Author-Name: Mohamed Boutahar 
Author-X-Name-First: Mohamed 
Author-X-Name-Last: Boutahar 
Author-Name: Karine Gente 
Author-X-Name-First: Karine 
Author-X-Name-Last: Gente 
Author-Name: Anne P駵in-Feissolle 
Author-X-Name-First: Anne 
Author-X-Name-Last: P駵in-Feissolle 
Title: Long-run relationships between international stock prices: further evidence from fractional cointegration tests 
Abstract:
  The recent empirical literature supports the view that most of the
 international stock prices are not pairwise cointegrated. However, by
 using fractional cointegration techniques, this article shows that France,
 Germany, Hong Kong and Japan's stock prices indices are pairwise
 fractionally cointegrated with US stock prices. Equilibrium errors are
 mean reverting with half-life lying between 2 and 12 days. It is
 worthwhile noting that emerging markets like Brazil and Argentina are not
 pairwise cointegrated with the US stock market. These new results have
 important implications for asset pricing and international portfolio
 strategy. 
Journal: Applied Economics 
Pages: 817-828 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.566207 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566207 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:817-828




Template-Type: ReDIF-Article 1.0
Author-Name: Ralf Fendel 
Author-X-Name-First: Ralf 
Author-X-Name-Last: Fendel 
Author-Name: Michael Frenkel 
Author-X-Name-First: Michael 
Author-X-Name-Last: Frenkel 
Author-Name: Jan-Christoph R&#xFC;lke 
Author-X-Name-First: Jan-Christoph 
Author-X-Name-Last: R&#xFC;lke 
Title: Do professional forecasters trust in Taylor-type rules? -- Evidence from the Wall Street Journal poll 
Abstract:
  This article uses the monthly Wall Street Journal poll between 2002 and
 2010 to analyse whether professional economic forecasters believe in and,
 thus, apply Taylor-type rules for their own forecasts. Using their
 forecasts for the Federal Funds rate, the inflation rate and capacity
 utilization, we estimate whether these are internally consistent with the
 message of Taylor(-type) rules. We find that the expectation formation can
 indeed be described by Taylor-type rules. 
Journal: Applied Economics 
Pages: 829-838 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613770 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613770 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:829-838




Template-Type: ReDIF-Article 1.0
Author-Name: Olga Murova 
Author-X-Name-First: Olga 
Author-X-Name-Last: Murova 
Author-Name: Benaissa Chidmi 
Author-X-Name-First: Benaissa 
Author-X-Name-Last: Chidmi 
Title: Technical efficiency of US dairy farms and federal government programs 
Abstract:
  In this article, Technical Efficiency (TE) of dairy farms is estimated
 and analysed with two methodologies: Data Envelopment Analysis (DEA) and
 Stochastic Frontier Analysis (SFA). Using DEA, the TE scores for different
 states are determined. Further, logistic regression is applied to TE
 scores to explain how known technical and policy variables affect a farm's
 probability of being efficient. The second methodology employs SFA to
 estimate and analyse TE scores. Two federal milk policies are considered
 in this research: marketing policy and milk income loss policy. Federal
 milk marketing program has shown a significant and negative impact on TE
 with both methods. Payments under the milk income loss program have shown
 a positive significant impact in SFA analysis. Both methodologies produced
 similar outcomes on regional impacts and on the significance of several
 considered variables. Categorical representation of some variables in
 graphs provided some additional insights of their effects on TE. 
Journal: Applied Economics 
Pages: 839-847 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613772 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613772 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:839-847




Template-Type: ReDIF-Article 1.0
Author-Name: Su Zhou 
Author-X-Name-First: Su 
Author-X-Name-Last: Zhou 
Title: Nonlinearity and stationarity of inflation rates: evidence from the euro-zone countries 
Abstract:
  Earlier studies hardly reject the hypothesis of a unit root in inflation.
 Few studies have examined the possibility of nonlinearity in inflation and
 tested nonlinear stationarity of the inflation rates. This study thus
 intends to fill the gap. This study utilizes the tests for nonlinearity
 along with the unit root tests that allow for nonlinearity in the
 variables to examine the stationarity of inflation rates of 12 European
 countries that formed the Euro Zone (EZ) later in the sample period. The
 results suggest that the majority of these countries&#x2019; inflation
 rates can be characterized by mean reversion during the floating exchange
 rate period. Many of them appear to be nonlinear stationary. This finding
 is essential in conducting applied economic studies for these countries,
 when constructing models whose validity relies on whether or not inflation
 is stationary. The results of this study also imply that shocks to
 inflation have a transitory effect on inflation in the euro area.
 Therefore, it would be less costly in exercising the policies of
 disinflation for the monetary authorities of the euro area than for those
 of the countries with nonstationary inflation. 
Journal: Applied Economics 
Pages: 849-856 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613774 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613774 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:849-856




Template-Type: ReDIF-Article 1.0
Author-Name: Damien &#xC9;chevin 
Author-X-Name-First: Damien 
Author-X-Name-Last: &#xC9;chevin 
Title: Employment and education discrimination against disabled people in Cape Verde 
Abstract:
  This article assesses the employment and school enrolment gaps between
 disabled and nondisabled persons using the last Cape Verdean census. The
 unexplained part of these gaps accounts for most of them, whatever the age
 group considered. Furthermore, differences in age structures between
 disabled and nondisabled persons have almost no effect on these gaps.
 Taking into account potential misclassification errors in the disability
 variable seems to change only marginally these results. These findings
 thus suggest that there is scope for programs to better target and promote
 employment and education of the disabled in Cape Verde. 
Journal: Applied Economics 
Pages: 857-875 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613775 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613775 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:857-875




Template-Type: ReDIF-Article 1.0
Author-Name: C.   Jill Stowe 
Author-X-Name-First: C.   Jill 
Author-X-Name-Last: Stowe 
Title: Breeding to sell: a hedonic price analysis of leading Thoroughbred sire stud fees 
Abstract:
  This article utilizes panel data on leading Thoroughbred sires from 1999
 until 2008 and estimates the determinants of their stud fees, or the price
 paid for the rights to one breeding season, and the marginal value of
 those characteristics. Using a Fixed Effects (FE) estimation procedure, we
 find strong evidence of &#x2018;breeding to sell&#x2019;: stud fees for
 established sires are determined primarily by the sales prices of their
 progeny. Other determinants include a sire's ability to produce sons who
 go on to become sires themselves, current year progeny racing performance
 and cumulative racing performance of a sire's progeny. 
Journal: Applied Economics 
Pages: 877-885 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613776 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613776 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:877-885




Template-Type: ReDIF-Article 1.0
Author-Name: Edinaldo Tebaldi 
Author-X-Name-First: Edinaldo 
Author-X-Name-Last: Tebaldi 
Author-Name: Bruce Elmslie 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Elmslie 
Title: Does institutional quality impact innovation? Evidence from cross-country patent grant data 
Abstract:
  This article contributes to the literature on institutions and economic
 growth by conducting an empirical examination of the links between
 innovation and institutions. Using cross-country data and the instrumental
 variable method, this study finds that institutional arrangements explain
 much of the cross country variations in patent production. Our results
 also imply that controlling for institutional quality, geographic related
 variables are not significant in explaining patent production. This
 article also finds evidence to support the idea that in the long run human
 capital accumulation is an important factor in shaping institutions. 
Journal: Applied Economics 
Pages: 887-900 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613777 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613777 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:887-900




Template-Type: ReDIF-Article 1.0
Author-Name: Ofer   H. Azar 
Author-X-Name-First: Ofer   H. 
Author-X-Name-Last: Azar 
Title: Firm strategy and biased decision making: the price dispersion puzzle 
Abstract:
  This article confronts the empirical evidence and theoretical predictions
 about the correlation between price dispersion and price. Theoretically,
 search and location differentiation models suggest that price dispersion
 is a function of search and transportation costs, but is independent of
 the good's price. Empirical evidence, however, suggests otherwise: price
 dispersion and price are strongly correlated. This article points out the
 discrepancy between theory and evidence, which it denotes as &#x2018;the
 price dispersion puzzle&#x2019;. It then explains why the documented
 behaviour of relative thinking (people behave as if their search or
 transportation costs are increasing in the good's price) can solve the
 puzzle. 
Journal: Applied Economics 
Pages: 901-910 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613778 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:901-910




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Feeny 
Author-X-Name-First: Simon 
Author-X-Name-Last: Feeny 
Author-Name: Bazoumana Ouattara 
Author-X-Name-First: Bazoumana 
Author-X-Name-Last: Ouattara 
Title: The effects of health aid on child health promotion in developing countries: cross-country evidence 
Abstract:
  Although epidemiological knowledge in relation to child health has
 improved in the last few decades, around 3 million children die each year
 in developing countries from preventable diseases. The international
 development community views increased immunization coverage for children
 as an important step in eliminating or reducing these deaths. Many
 developing countries have very limited resources to tackle major health
 problems and have to rely on external finance. This article examines the
 impact of foreign aid devoted to the health sector on child health
 promotion in developing countries. Two proxies for child health promotion
 are used: (a) immunization against measles and (b) immunization against
 Diphtheria--Pertussis--Tetanus (DPT). A range of model specifications and
 panel data econometric techniques are applied to data covering the period
 1990 to 2005. This article finds a positive and statistically significant
 link between health aid and the measures of child health promotion. 
Journal: Applied Economics 
Pages: 911-919 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613779 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613779 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:911-919




Template-Type: ReDIF-Article 1.0
Author-Name: Almuhanad Melhim 
Author-X-Name-First: Almuhanad 
Author-X-Name-Last: Melhim 
Author-Name: C.   Richard Shumway 
Author-X-Name-First: C.   Richard 
Author-X-Name-Last: Shumway 
Title: Cost economies in the presence of marketing contracts 
Abstract:
  We examine the impact of marketing contracts on farm cost structure and
 implied scale and scope economies for large samples of dairy, corn and
 wheat farms. We consider a multi-product, multi-market technology to
 examine returns from diversifying marketing schemes. Allowing for risk
 preferences under price uncertainty, we estimate the contract adoption
 decision, risk preferences and structural parameters simultaneously. We
 derive measures of economies for both contracting and noncontracting
 farms. Each industry exhibits significant scope and multi-output scale
 economies but vary in product-specific scale economies. We find that
 marketing contracts improve returns to corn and wheat farms, but not to
 dairy farms. 
Journal: Applied Economics 
Pages: 921-932 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613780 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613780 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:921-932




Template-Type: ReDIF-Article 1.0
Author-Name: H. Schmale 
Author-X-Name-First: H. 
Author-X-Name-Last: Schmale 
Author-Name: T. Ehrmann 
Author-X-Name-First: T. 
Author-X-Name-Last: Ehrmann 
Author-Name: A. Dilger 
Author-X-Name-First: A. 
Author-X-Name-Last: Dilger 
Title: Buying without using -- biases of German BahnCard buyers 
Abstract:
  We use a large data set of German railway travellers to analyse the
 purchasing decision for fare-reducing BahnCards. We expect that this
 tariff choice is neither completely rational nor irrational, but
 bounded-rational in a meaningful way. Actually we predict a flat-rate
 bias, i.e. an under-use of their BahnCards by many customers. However, we
 estimate that this bias is not too large. The empirical results approve
 our hypotheses for the most part, especially for the more expensive
 BahnCard50 (BC50), whereas the under-use of the cheaper BahnCard25 (BC25)
 is so extensive that it is not worthwhile on average. 
Journal: Applied Economics 
Pages: 933-941 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613781 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613781 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:933-941




Template-Type: ReDIF-Article 1.0
Author-Name: Ghassem   A. Homaifar 
Author-X-Name-First: Ghassem   A. 
Author-X-Name-Last: Homaifar 
Author-Name: Jonathan Adongo 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Adongo 
Author-Name: Kevin   M. Zhao 
Author-X-Name-First: Kevin   M. 
Author-X-Name-Last: Zhao 
Title: The long-run relationship between stock return dispersion and output 
Abstract:
  Based on the rational that some industry groups are more closely linked
 to the business cycle than others, we re-examined a previous analysis on
 the long-term relationship between stock return dispersion by industry and
 Gross Domestic Product (GDP), which evaluated data until 1987 by extending
 it to 2008. Using Mean Square Forecast Errors (MSFE) statistics, we find
 that incorporating the return dispersion in Vector Autoregressive (VAR)
 models enhances their forecasting power for output (GDP) in the long run.
 This article also determines that the relationship between stock return
 dispersion by industry and GDP is tenuous in the recent decade from 1999. 
Journal: Applied Economics 
Pages: 943-952 
Issue: 7 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613792 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613792 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:7:p:943-952




Template-Type: ReDIF-Article 1.0
Author-Name: Yohannes Kinfu 
Author-X-Name-First: Yohannes 
Author-X-Name-Last: Kinfu 
Title: The efficiency of the health system in South Africa: evidence from stochastic frontier analysis 
Abstract:
  The availability of increased resources and the lack of parallel
 improvement in health status have renewed interest on health system
 performance, particularly where progress towards the Millennium
 Development Goals has been slow. Since the political transition in 1994,
 South Africa has consistently invested over eight of its Gross Domestic
 Product (GDP) on health, but so far returns remain uneven, with some
 localities delivering lower outcomes than others, even when they have
 comparable input levels. This study measures the performance of the
 country's health system, following a stochastic production frontier
 approach. Results have revealed that eight of the 52 districts in the
 country had an efficiency score of below 60%, and in four of these, the
 score was below 50%. Technical inefficiency was positively and
 significantly associated with HIV prevalence and illiteracy rates reported
 for districts. Overall mean technical efficiency (TE) in the country was
 around 80%. Given this, further improvements in health outcome in the
 country are expected to depend both on its ability to address existing
 inefficiencies and on the capacity to invest additional resources in
 communities where existing services were already inadequate. 
Journal: Applied Economics 
Pages: 1003-1010 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613787 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613787 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:1003-1010




Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar 
Author-X-Name-First: Saten 
Author-X-Name-Last: Kumar 
Author-Name: Don   J. Webber 
Author-X-Name-First: Don   J. 
Author-X-Name-Last: Webber 
Title: Australasian money demand stability: application of structural break tests 
Abstract:
  Estimates of the demand for money provide important foundations for
 monetary policy setting but if the estimation technique does not
 explicitly account for structural changes then such estimates will be
 biased. This article presents an investigation into the level and
 stability of money demand (<italic>M1</italic>) for Australia and New
 Zealand over the period 1960--2009 and demonstrates that both countries
 experienced regime shifts; Australia also experienced an intercept shift.
 Application of four time series methods provide consistent results with
 1984 and 1998 break dates. Cumulative Sum (CUSUM) and CUSUMSQ stability
 tests reveal that <italic>M1</italic> demand functions were unstable over
 the period 1984--1998 for both countries although tests for stability are
 not rejected thereafter. 
Journal: Applied Economics 
Pages: 1011-1025 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613788 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:1011-1025




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Bodman 
Author-X-Name-First: Philip 
Author-X-Name-Last: Bodman 
Author-Name: Thanh Le 
Author-X-Name-First: Thanh 
Author-X-Name-Last: Le 
Title: Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus 
Abstract:
  We further examine the channels through which Foreign Direct Investment
 (FDI) develops the national productivity of host countries. We investigate
 whether FDI is an effective channel of technological transfer across
 borders and whether that technology transfer is bi-directional: from an
 investing country to a host country and vice versa. In particular, an
 analysis is provided of whether FDI helps channel more resources towards
 the promotion of education activities and hence augments economic growth
 indirectly through augmenting the host country's <italic>absorptive
 capacity</italic>. Also, the analysis uses a novel approach to take into
 account the possibility that physical distances can act as a barrier to
 economic and technological interactions amongst countries, by embedding a
 measure of geographical distance into two specific channels: international
 trade and FDI. Empirical results obtained all lend strong support to these
 hypotheses. 
Journal: Applied Economics 
Pages: 1027-1039 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613789 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:1027-1039




Template-Type: ReDIF-Article 1.0
Author-Name: L. G.   Gonz&#xE1;lez Ortiz 
Author-X-Name-First: L. G.   Gonz&#xE1;lez 
Author-X-Name-Last: Ortiz 
Author-Name: G. Masiero 
Author-X-Name-First: G. 
Author-X-Name-Last: Masiero 
Title: Disentangling spillover effects of antibiotic consumption: a spatial panel approach 
Abstract:
  Literature on socioeconomic determinants of antibiotic consumption in the
 community is limited to few countries using cross-sectional data. This
 article analyses regional variations in outpatient antibiotics in Italy
 using a balanced panel dataset covering the period 2000 to 2008. We
 specify an econometric model in which antibiotic consumption depends upon
 demographic and socioeconomic characteristics of the population, the
 supply of health care services in the community, and antibiotic
 copayments. The model is estimated by means of Ordinary Least Squares
 (OLS) techniques with Fixed Effects (FE). The implications of consumption
 externalities across geographical areas are investigated by means of
 Spatial-Lag and Spatial-Error models (SLFE and SEFE). We find significant
 and positive income elasticity and negative effects of copayments.
 Antibiotic use is also affected by the age structure of the population and
 the supply of community health care. Finally, we find evidence of spatial
 dependency in the use of antibiotics across regions. This suggests that
 regional policies (e.g. public campaigns) aimed at increasing efficiency
 in antibiotic consumption and controlling bacterial resistance may be
 influenced by policy makers in neighbouring regions. There will be scope
 for a strategic and coordinated view of regional policies towards the use
 of antibiotics. 
Journal: Applied Economics 
Pages: 1041-1054 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613790 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613790 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:1041-1054




Template-Type: ReDIF-Article 1.0
Author-Name: Mudziviri Nziramasanga 
Author-X-Name-First: Mudziviri 
Author-X-Name-Last: Nziramasanga 
Author-Name: Jonathan Yoder 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Yoder 
Title: The check in the mail: household characteristics and migrant remittance from the US to Mexico 
Abstract:
  We develop a household model of migrant remittance that supports testable
 hypotheses about the effect of migrant income, family composition and
 distribution, transaction costs associated with remittance mode, income
 and residence security, and other household characteristics on remittance
 levels and frequency. We test these hypotheses using survey data on
 individual Mexican migrants in the United States. The results are broadly
 consistent with our hypotheses. 
Journal: Applied Economics 
Pages: 1055-1073 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613791 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613791 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:1055-1073




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro   M. G. Martins 
Author-X-Name-First: Pedro   M. G. 
Author-X-Name-Last: Martins 
Title: Do large capital inflows hinder competitiveness? The Dutch disease in Ethiopia 
Abstract:
  This article investigates whether large inflows of foreign aid and
 remittances have had a damaging impact on the Ethiopian Real Exchange Rate
 (RER). We improve the current empirical literature by: (i) compiling a
 unique quarterly dataset to provide a larger sample size and enable the
 modelling of important intra-year dynamics -- which should lead to better
 model specifications; (ii) providing a new empirical approach (Unobserved
 Components (UC)) to test the &#x2018;Dutch disease&#x2019; hypothesis; and
 (iii) using several cointegration approaches to further test the
 robustness of our conclusions. Our results suggest that there are two main
 long-run determinants of the RER in Ethiopia: trade openness is found to
 be correlated with RER depreciations, while a positive shock to the terms
 of trade tends to appreciate the RER. Foreign aid is not found to have a
 statistically significant impact, while there is only weak evidence that
 remittances are associated with RER appreciations. The lack of empirical
 support for the &#x2018;Dutch disease&#x2019; hypothesis suggests that
 Ethiopia has been able to effectively manage large capital inflows, thus
 avoiding major episodes of macroeconomic instability. We believe that most
 African countries will therefore be able to absorb large inflows of
 foreign capital without damaging their external competitiveness. 
Journal: Applied Economics 
Pages: 1075-1088 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613794 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613794 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:1075-1088




Template-Type: ReDIF-Article 1.0
Author-Name: Kian-Ping Lim 
Author-X-Name-First: Kian-Ping 
Author-X-Name-Last: Lim 
Author-Name: Weiwei Luo 
Author-X-Name-First: Weiwei 
Author-X-Name-Last: Luo 
Author-Name: Jae   H. Kim 
Author-X-Name-First: Jae   H. 
Author-X-Name-Last: Kim 
Title: Are US stock index returns predictable? Evidence from automatic autocorrelation-based tests 
Abstract:
  This article re-examines the evidence of return predictability for three
 major US stock indices using two recently developed data-driven tests,
 namely the automatic portmanteau Box--Pierce test and the wild
 bootstrapped automatic variance ratio test. In tracking the time variation
 of return predictability via rolling estimation window, we find that those
 periods with significant return autocorrelations can largely be associated
 with major exogenous events. Theoretically, the documented time varying
 nature of predictable patterns is consistent with the adaptive markets
 hypothesis. 
Journal: Applied Economics 
Pages: 953-962 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613782 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613782 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:953-962




Template-Type: ReDIF-Article 1.0
Author-Name: Maryann   O. Keating 
Author-X-Name-First: Maryann   O. 
Author-X-Name-Last: Keating 
Author-Name: Barry   P. Keating 
Author-X-Name-First: Barry   P. 
Author-X-Name-Last: Keating 
Title: How trade and capital restrictions affect the probability of a balance of trade disturbance 
Abstract:
  Free market economists argue that national authorities avoid restrictions
 on the free movement of goods, services and financial capital between
 countries. Yet, countries continually choose to restrict the flow of
 capital both into and out of the country. Why is this done? Is it done to
 protect the domestic banking system, to control the domestic money supply,
 to manage the exchange rate, to provide stability for internal markets or
 to avoid wide swings in the availability of capital? Are these controls
 effective in precluding wide swings in a country's international trade
 balance? This article uses panel data in a logit model to analyse policy
 choice with respect to an international trade and/or investment regime.
 The goal is to identify choices effective in reducing the likelihood of a
 severe Balance of Trade Disturbance (BTD) and determine if the appropriate
 choice is related to per capita income (pci). 
Journal: Applied Economics 
Pages: 963-972 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613783 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613783 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:963-972




Template-Type: ReDIF-Article 1.0
Author-Name: Ton van Schaik 
Author-X-Name-First: Ton 
Author-X-Name-Last: van Schaik 
Author-Name: Theo van de Klundert 
Author-X-Name-First: Theo 
Author-X-Name-Last: van de Klundert 
Title: Employment protection legislation and catching-up 
Abstract:
  After World War II (WW II), productivity growth in Europe and Japan was
 driven by catching up with the US. Institutions in Europe were different
 too and well suited for economic growth through imitation and adaptation
 of the technology to local circumstances. Catching up is, however, a self
 defeating process. It ends when the technology frontier is attained or
 when in case of conditional convergence institutions set a limit to the
 process of catching up. Once this situation is reached, the existing
 institutions may no longer be appropriate. Regression analysis on a panel
 of 21 Organization for Economic Cooperation and Development countries
 reveals that Employment Protection Legislations (EPL) had a positive
 impact on productivity growth in the period of rapid convergence in the
 sixties and seventies. However, from the eighties onwards, the total
 effect of EPL on labour productivity growth was negative. 
Journal: Applied Economics 
Pages: 973-981 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613784 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613784 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:973-981




Template-Type: ReDIF-Article 1.0
Author-Name: Jang   C. Jin 
Author-X-Name-First: Jang   C. 
Author-X-Name-Last: Jin 
Author-Name: Lawrence Jin 
Author-X-Name-First: Lawrence 
Author-X-Name-Last: Jin 
Title: Research publications and economic growth: evidence from cross-country regressions 
Abstract:
  The effects of the quality of tertiary education on economic growth have
 been examined across countries. Professors&#x2019; research publication is
 used as a proxy for the quality of education at the university level.
 Research outputs in basic science and engineering are found to have a
 positive and significant effect on economic growth. Economics and business
 research also have immediate growth effects although the effects are a bit
 smaller. The results are, in general, consistent with the findings in the
 growth literature. The convergence hypothesis is also supported by the
 data. 
Journal: Applied Economics 
Pages: 983-990 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613785 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613785 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:983-990




Template-Type: ReDIF-Article 1.0
Author-Name: Aparna Mathur 
Author-X-Name-First: Aparna 
Author-X-Name-Last: Mathur 
Author-Name: Kartikeya Singh 
Author-X-Name-First: Kartikeya 
Author-X-Name-Last: Singh 
Title: Foreign direct investment, corruption and democracy 
Abstract:
  This article is the first to show that foreign investors care about
 economic freedoms, rather than political freedoms, in making decisions
 about where to locate capital. Hence more democratic countries may receive
 less Foreign Direct Investment (FDI) flows if economic freedoms are not
 guaranteed. One reason could be that democratizing developing economies
 are often unable to push through the kind of economic reforms that
 investors desire due to the presence of competing political interests.
 This could potentially explain why countries like China and Singapore that
 rank poorly on the democracy index but are relatively high on the property
 rights index do well in terms of FDI inflows. 
Journal: Applied Economics 
Pages: 991-1002 
Issue: 8 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613786 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:8:p:991-1002




Template-Type: ReDIF-Article 1.0
Author-Name: Kent   D. Messer 
Author-X-Name-First: Kent   D. 
Author-X-Name-Last: Messer 
Author-Name: Gregory   L. Poe 
Author-X-Name-First: Gregory   L. 
Author-X-Name-Last: Poe 
Author-Name: William   D. Schulze 
Author-X-Name-First: William   D. 
Author-X-Name-Last: Schulze 
Title: The value of private versus public risk and pure altruism: an experimental economics test 
Abstract:
  In 1996, Johannesson <italic>et&#xA0;al</italic>. published a paper
 entitled &#x2018;The Value of Private Safety versus the Value of Public
 Safety&#x2019;. Based on the preliminary evidence from a hypothetical
 contingent valuation study for public and private safety, these authors
 argue that consumers behave as &#x2018;pure altruists&#x2019; who consider
 the cost of a program that might be imposed on other voters when they
 determine their maximum willingness-to-pay for public safety programs. The
 authors conclude that further empirical research in this area is
 warranted. This article presents a set of laboratory economics experiments
 to test Johannesson <italic>et&#xA0;al</italic>.'s conjecture under
 controlled conditions in which participants face an actual risk of
 financial loss. The laboratory results extend those of Johannesson
 <italic>et&#xA0;al</italic>.'s, providing strong evidence of pure altruism
 in coercive settings involving public risks. 
Journal: Applied Economics 
Pages: 1089-1097 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.608645 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1089-1097




Template-Type: ReDIF-Article 1.0
Author-Name: Solomon Tarfasa 
Author-X-Name-First: Solomon 
Author-X-Name-Last: Tarfasa 
Author-Name: Roy Brouwer 
Author-X-Name-First: Roy 
Author-X-Name-Last: Brouwer 
Title: Estimation of the public benefits of urban water supply improvements in Ethiopia: a choice experiment 
Abstract:
  Improving existing drinking water supply services in developing countries
 depends crucially on available financial resources. Cost recovery rates of
 these services are typically low, while demand for more reliable services
 is high and rapidly growing. Most stated preference-based demand studies
 in the developing world apply the contingent valuation method and focus on
 rural areas. This study examines household Willingness to Pay (WTP) for
 improved water supply services in a choice experiment in an urban area in
 Ethiopia, a country with the lowest water supply coverage in Sub-Saharan
 Africa. The design of the choice experiment allows estimation of the value
 of both drinking water supply reliability and safety. The estimated
 economic values can be used in policy appraisals of improved supply
 investment decisions. Despite significant income constraints, households
 are willing to pay up to 80% extra for improved levels of water supply
 over and above their current water bill. Women and households living in
 the poorest part of the city with the lowest service levels value the
 improvement of water quality most. As expected, also averting behaviour
 and expenditures play an important role. 
Journal: Applied Economics 
Pages: 1099-1108 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613793 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613793 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1099-1108




Template-Type: ReDIF-Article 1.0
Author-Name: H餩 Essid 
Author-X-Name-First: H餩 
Author-X-Name-Last: Essid 
Author-Name: Pierre Ouellette 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Ouellette 
Author-Name: St鰨ane Vigeant 
Author-X-Name-First: St鰨ane 
Author-X-Name-Last: Vigeant 
Title: Small is not that beautiful after all: measuring the scale efficiency of Tunisian high schools using a DEA-bootstrap method 
Abstract:
  Allocation of resources to schools in a centrally managed state system,
 as the Tunisian one, should depend on the performance of the individual
 institutions. The optimal size is of crucial importance in this context
 and we need accurate measurement for sound policies. This article
 discusses and implements a nonparametric statistical test procedure for
 organization scale efficiency. This procedure allows us to test whether
 the observed scale efficiency is optimal or not, using a smooth bootstrap
 methodology for efficiency measures estimated using Data Envelopment
 Analysis (DEA) methods. Because school principals do not control for the
 size of their institution, i.e. the capital available at decision time,
 the scale efficiency measures are defined so as to include quasi-fixed
 inputs. The results show that scale efficiency measures are subject to
 sampling variation. We also found that the schools that are scale
 efficient are usually mid-sized and large schools, when size is measured
 by the number of students. This contradicts the largely shared view among
 decision makers that small schools were optimal. 
Journal: Applied Economics 
Pages: 1109-1120 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613795 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613795 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1109-1120




Template-Type: ReDIF-Article 1.0
Author-Name: Lijia Mo 
Author-X-Name-First: Lijia 
Author-X-Name-Last: Mo 
Title: Impact of food safety information on US poultry demand 
Abstract:
  The impact of poultry product recall events on consumer demand in the US
 was empirically tested for four major categories of poultry: broiler
 (young chicken), eggs, turkey and other chicken (mature or nonbroiler
 chicken). From 2000 to 2004, poultry Food Safety Inspection Service (FSIS)
 recall events had a consistent positive impact on demand for turkey but no
 significant impact on other types of poultry products. United States
 Department of Agriculture (USDA) -- FSIS recall, as a complement to food
 labelling, did not undermine poultry consumption but promoted turkey
 demands. On the contrary, media recall undermined poultry demands.
 Moreover, it demonstrated that turkey consumers were a special behaviour
 group of poultry consumers. 
Journal: Applied Economics 
Pages: 1121-1131 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613796 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1121-1131




Template-Type: ReDIF-Article 1.0
Author-Name: J. Derbyshire 
Author-X-Name-First: J. 
Author-X-Name-Last: Derbyshire 
Author-Name: B. Gardiner 
Author-X-Name-First: B. 
Author-X-Name-Last: Gardiner 
Author-Name: S. Waights 
Author-X-Name-First: S. 
Author-X-Name-Last: Waights 
Title: Estimating the capital stock for the NUTS2 regions of the EU27 
Abstract:
  To identify and target lagging regions policy makers require statistics
 to be produced at regional level. In many instances it is not possible
 simply to compare regional-level statistics produced by Member State
 national statistical offices as there is variation in the methods and
 assumptions used to produce them. Capital stock statistics at the national
 level have been available for most countries of the EU27 for some time,
 but statistics at the regional level are absent for almost all countries.
 Where they do exist the methods used to produce them are not consistent
 across countries. This article assesses the feasibility of producing
 comparable estimates of the capital stock at NUTS2 regional level for the
 EU27 and makes some initial estimates. The article outlines the method and
 data employed, and the techniques used to fill missing values. The
 approach is a Perpetual Inventory Method (PIM) based on that outlined in
 the Organization for Economic Co-operation and Development (OECD) Manual
 on capital estimation, and the data employed were taken from Eurostat or
 other publicly available sources wherever possible. The article analyses
 the robustness of the capital stock estimates produced, as well as their
 impact on productivity analysis, and suggests how they can be improved in
 future updates. 
Journal: Applied Economics 
Pages: 1133-1149 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613797 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1133-1149




Template-Type: ReDIF-Article 1.0
Author-Name: Sylvie Charlot 
Author-X-Name-First: Sylvie 
Author-X-Name-Last: Charlot 
Author-Name: Sonia Paty 
Author-X-Name-First: Sonia 
Author-X-Name-Last: Paty 
Author-Name: Michel Visalli 
Author-X-Name-First: Michel 
Author-X-Name-Last: Visalli 
Title: Assessing the impact of local taxation on property prices: a spatial matching contribution 
Abstract:
  This article provides empirical evidence on the impact of local taxation
 on property prices, controlling for the local public spending, using data
 on property taxation and real estate transactions, over the period
 1994--2004. Our empirical methodology pairs transactions in the same
 spatial environments. Spatial differencing and Instrumental Variables (IV)
 methodology allow us to compare sales across municipality boundaries and
 to control for the potential endogeneity of local taxation and public
 spending. Our results suggest that the local Property Tax (PT) rate has no
 impact on property prices, while the amount of taxes paid appears to have
 a negative effect on property price. 
Journal: Applied Economics 
Pages: 1151-1166 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613798 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613798 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1151-1166




Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Schwartz 
Author-X-Name-First: Jeremy 
Author-X-Name-Last: Schwartz 
Title: Do temporary extensions to unemployment insurance benefits matter? The effects of the US standby extended benefit program 
Abstract:
  During the 2007--2010 economic downturn, the US temporarily increased the
 duration of Unemployment Insurance (UI) by 73 weeks, higher than any prior
 extension, raising concerns about UI's disincentive effects on job search.
 This article examines the effect of temporary benefit extensions using a
 Regression Discontinuity (RD) approach that addresses the endogeneity of
 benefit extensions and labour market conditions. Using data from the 1991
 recession, the results indicate that the Stand-by Extended Benefit (SEB)
 program has a significant, although somewhat limited, impact on county
 unemployment rates and the duration of unemployment. The results suggest
 that the temporary nature of SEB benefit extensions may mitigate their
 effect on search behaviour. 
Journal: Applied Economics 
Pages: 1167-1183 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.613799 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613799 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1167-1183




Template-Type: ReDIF-Article 1.0
Author-Name: R.   Todd Jewell 
Author-X-Name-First: R.   Todd 
Author-X-Name-Last: Jewell 
Author-Name: Michael   A. McPherson 
Author-X-Name-First: Michael   A. 
Author-X-Name-Last: McPherson 
Author-Name: Margie   A. Tieslau 
Author-X-Name-First: Margie   A. 
Author-X-Name-Last: Tieslau 
Title: Whose fault is it? Assigning blame for grade inflation in higher education 
Abstract:
  This study attempts to isolate the potential sources of grade inflation
 and to measure their relative importance. We incorporate existing models
 of grade inflation into a model of grade inflation at the department
 level. Our data comprise 1683 separate courses taught in 28 different
 academic departments by 3176 distinct instructors at a large public
 university over two decades. Our results suggest that incentives to
 inflate grades vary according to characteristics of academic departments.
 However, the vast majority (over 90%) of grade inflation observed in our
 data is estimated to be a result of either university-level factors or
 instructor-specific characteristics. 
Journal: Applied Economics 
Pages: 1185-1200 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.621884 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.621884 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1185-1200




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti 
Author-X-Name-First: Leonardo 
Author-X-Name-Last: Becchetti 
Author-Name: Pierluigi Conzo 
Author-X-Name-First: Pierluigi 
Author-X-Name-Last: Conzo 
Title: Credit access and life satisfaction: evaluating the nonmonetary effects of micro finance 
Abstract:
  Microfinance Institutions (MFIs) are used to claim that their impact goes
 beyond money since rescuing from exclusion uncollateralized poor borrowers
 significantly affects their dignity, self-esteem, social recognition,
 future economic perspectives and, through it, life satisfaction. Our
 article aims to verify the validity of this claim by evaluating whether
 access to microfinance loans has significant direct impact on life
 satisfaction beyond its indirect impact via current income changes.
 Empirical findings on a sample of poor borrowers in the suburbs of Buenos
 Aires show that, after controlling for survivorship, selection and
 interview bias, microfinance membership has a significant and positive
 effect on life satisfaction. 
Journal: Applied Economics 
Pages: 1201-1217 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.624086 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.624086 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1201-1217




Template-Type: ReDIF-Article 1.0
Author-Name: Apostolos Tsiachristas&#x2020; 
Author-X-Name-First: Apostolos 
Author-X-Name-Last: Tsiachristas&#x2020; 
Author-Name: Ren頇oudriaan 
Author-X-Name-First: Ren頍
Author-X-Name-Last: Goudriaan 
Author-Name: Wim Groot 
Author-X-Name-First: Wim 
Author-X-Name-Last: Groot 
Title: The welfare effects of innovative pharmaceuticals: an international perspective from the Dutch experience 
Abstract:
  Policy discussions on new medicines are often focused on cost containment
 rather than on the benefits they produce, such as health gains and cost
 savings in other sectors. In this study, we identify systematic
 differences in policies towards pharmaceuticals between countries and
 calculate the welfare gains of 39 innovative pharmaceuticals introduced in
 the Dutch market after 1997. Welfare gains are defined as the difference
 between the value of a QALY gained by innovative pharmaceuticals and their
 costs. The review shows that there are systematic differences among
 pharmaceutical policies and regulations between countries. It is further
 found that the welfare gains of pharmaceuticals are substantial and amount
 to &#x20AC;77 per capita per year in the Netherlands. The welfare gains
 could be higher if institutional barriers for an efficient utilization of
 innovative pharmaceuticals are removed. 
Journal: Applied Economics 
Pages: 1219-1226 
Issue: 9 
Volume: 45 
Year: 2013 
Month: 3 
X-DOI: 10.1080/00036846.2011.628296 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.628296 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:9:p:1219-1226




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Abbott 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Abbott 
Author-Name: Glauco De Vita 
Author-X-Name-First: Glauco 
Author-X-Name-Last: De Vita 
Title: Testing for long-run convergence across regional house prices in the UK: a pairwise approach 
Abstract:
  This article tests for stochastic convergence in UK regional house prices
 using the recently developed pairwise approach. This approach allows for
 unit root tests to be conducted on all
 <italic>N</italic>(<italic>N&#x2009;&#x2212;&#x2009;</italic>1)/2 possible
 pairs of house price differentials across <italic>N</italic> regions in
 the UK, thus avoiding the need to choose a base region or alternative
 national figure as the benchmark. Using mix adjusted house price data from
 1973:Q4 to 2008:Q4, the main finding is that there is no evidence of long
 run convergence among regional house prices or of an equilibrium
 relationship towards which UK regional house prices have a tendency to
 gravitate. 
Journal: Applied Economics 
Pages: 1227-1238 
Issue: 10 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.613800 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613800 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:10:p:1227-1238




Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Bardhan 
Author-X-Name-First: Ashok 
Author-X-Name-Last: Bardhan 
Author-Name: Daniel   L. Hicks 
Author-X-Name-First: Daniel   L. 
Author-X-Name-Last: Hicks 
Author-Name: Dwight Jaffee 
Author-X-Name-First: Dwight 
Author-X-Name-Last: Jaffee 
Title: How responsive is higher education? The linkages between higher education and the labour market 
Abstract:
  Higher education is considered vital for developing a productive and
 dynamic labour force to meet the demands of the global economy. How
 effectively does the US higher education sector respond to labour market
 signals? We match US postsecondary degree completions from 1984 to 2008
 with occupational employment statistics and employ an Instrumental
 Variable (IV) strategy to examine the supply response to changes in
 occupation specific demand. The supply of educated workers appears weakly
 responsive to short-term wage signals and moderately responsive to
 long-term employment conditions. Analysis reveals a sizeable degree of
 heterogeneity and lag in the responsiveness across specific
 occupation--degree pairings. Failure to respond rapidly to changes in
 labour demand may be one factor driving inequality in wages across
 occupations and in the aggregate economy. We suggest some simple policy
 measures to help increase the responsiveness of the higher education
 sector, both in terms of the output of specific degree programmes and the
 overall mix and composition of graduate completions. 
Journal: Applied Economics 
Pages: 1239-1256 
Issue: 10 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.613801 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613801 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:10:p:1239-1256




Template-Type: ReDIF-Article 1.0
Author-Name: Jakob   B. Madsen 
Author-X-Name-First: Jakob   B. 
Author-X-Name-Last: Madsen 
Author-Name: Ratbek Dzhumashev 
Author-X-Name-First: Ratbek 
Author-X-Name-Last: Dzhumashev 
Author-Name: Hui Yao 
Author-X-Name-First: Hui 
Author-X-Name-Last: Yao 
Title: Stock returns and economic growth 
Abstract:
  Theoretical considerations appear to support the conjecture that stock
 returns are positively related to growth in the long run. However, the
 empirical literature does not give unanimous support to the theory. Based
 on a stochastic general equilibrium model it is argued that the long-run
 relationship between stock returns and per capita income growth is
 ambiguous and depends on output volatility. Using a century of data for 20
 Organization for Economic Co-operation and Development (OECD) countries it
 is shown that the relationship between stock returns and growth is
 positive over the period 1916--1951, in which output volatility was
 persistent. Outside this period no relationship between stock returns and
 growth is found. These findings are consistent with the predictions of the
 theoretical model. 
Journal: Applied Economics 
Pages: 1257-1271 
Issue: 10 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.613802 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613802 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:10:p:1257-1271




Template-Type: ReDIF-Article 1.0
Author-Name: Wei-han Liu 
Author-X-Name-First: Wei-han 
Author-X-Name-Last: Liu 
Title: Detecting structural breaks in tail behaviour -- from the perspective of fitting the generalized Pareto distribution 
Abstract:
  Extreme Value Theory (EVT) is heavily applied in modelling tail
 behaviour. Previous literature uses the tail index to test for Structural
 Breaks (SBs) in the tails. This study presents another more reliable
 approach and relies on the outperformance of the Generalized Pareto
 Distribution (GPD) in modelling tails. The transformed GPD is treated as a
 classical Ordinary Least Square (OLS) regression and the generalized
 M-fluctuation test (Zeileis, 2005, 2006) is applied because it is a
 unified approach based on Maximum Likelihood (ML) scores (Andrews and
 Ploberger, 1994), <italic>F</italic>-statistics (1989, 1992), and OLS
 residuals (Ploberger and Kramer, 1992). The outcomes indicate that there
 are multiple SBs not only in all of the three exchange return series
 considered (UK Pound, Japanese Yen and New Taiwan Dollar, all versus US
 Dollar) but also GPD parameter estimation at extreme quantile levels.
 Based on these empirical analyses, it is advisable that EVT should be used
 with caution at extreme quantile levels. 
Journal: Applied Economics 
Pages: 1273-1286 
Issue: 10 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.613803 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613803 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:10:p:1273-1286




Template-Type: ReDIF-Article 1.0
Author-Name: Mira Farka 
Author-X-Name-First: Mira 
Author-X-Name-Last: Farka 
Author-Name: Adrian   R. Fleissig 
Author-X-Name-First: Adrian   R. 
Author-X-Name-Last: Fleissig 
Title: The impact of FOMC statements on the volatility of asset prices 
Abstract:
  This article examines the impact of Federal Open Market Committee (FOMC)
 statements on asset prices. Statements are found to have a much more
 pronounced impact on the volatility of asset prices than interest rate
 surprises. They influence primarily stock returns, intermediate and
 long-term yields, whereas short-term rates are driven both by statements
 and by interest rate surprises. We also find that the regime shift of May
 1999 has improved the effectiveness of monetary policy, as reflected in an
 overall reduction in market volatility during the most recent regime. In
 addition, markets are equally well-prepared for the upcoming rate decision
 in both regimes, but the process of adjustment depends on whether a
 statement was issued in the old regime or not. When a statement is issued,
 price adjustments are very similar across both periods, whereas if no
 statement is issued then the rate of adjustment towards the new value is
 more gradual and occurs throughout the entire intermeeting period. 
Journal: Applied Economics 
Pages: 1287-1301 
Issue: 10 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.615732 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.615732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:10:p:1287-1301




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Vidal-Meli&#xE1; 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Vidal-Meli&#xE1; 
Author-Name: Mar𨁤el Carmen Boado-Penas 
Author-X-Name-First: Mar𨀍
Author-X-Name-Last: del Carmen Boado-Penas 
Title: Compiling the actuarial balance for pay-as-you-go pension systems. Is it better to use the hidden asset or the contribution asset? 
Abstract:
  The aim of this article is twofold: to establish the connection between
 the &#x2018;Contribution Asset&#x2019; (CA) and the &#x2018;Hidden
 Asset&#x2019; (HA) and to determine whether using either of them to
 compile the Actuarial Balance (AB) sheet in the Pay-As-You-Go (PAYG)
 pension system will provide a reliable solvency indicator. With these aims
 in mind, we develop a model based on those first put forward by Settergren
 and Mikula (2005) and Boado-Penas <italic>et&#xA0;al</italic>. (2008) to
 obtain the analytical properties of the CA and to confirm its soundness as
 a measure of the assets of a PAYG scheme. Our model also enables us to
 explore whether, and to what extent, the HA can be considered a second
 alternative measure of the assets for PAYG schemes. The main theoretical
 finding is that, despite their very different natures, the HA and the CA
 may nearly coincide at the limit when the interest rate of the financial
 market approaches the growth of the covered wage bill from above, but the
 HA supplies a solvency indicator which is not always consistent with the
 system's financial health. 
Journal: Applied Economics 
Pages: 1303-1320 
Issue: 10 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.615733 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.615733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:10:p:1303-1320




Template-Type: ReDIF-Article 1.0
Author-Name: Peter   L. Jones 
Author-X-Name-First: Peter   L. 
Author-X-Name-Last: Jones 
Title: The determinants of aggregate creditors&#x2019; voluntary liquidations 
Abstract:
  This article investigates the determinants of Creditors&#x2019; Voluntary
 Liquidations (CVLs), an area of research that has received comparatively
 scant attention in the literature despite the fact that, at least in the
 UK, this form of insolvency has consistently comprised the majority of
 company failures. It develops an Equilibrium Correction Model (ECM) to
 explain variations in the aggregate number of CVLs in England and Wales
 between 1963 and 1995. This is then subjected to out-of-sample testing
 over the subsequent 10-year period. The results indicate that in both the
 short-run and the long-run, changes in the level of liquidations can be
 explained by two main explanatory variables namely: the nominal after-tax
 cost of borrowing and changes in the overall level of economic activity.
 In addition, confirmatory evidence is provided for the dampening effect of
 the 1986 Insolvency Act on the number of liquidations. The model retains
 its forecasting accuracy in the out-of-sample period although there is
 possibly some preliminary evidence of a further mitigating effect
 associated with the Enterprise Act 2002. 
Journal: Applied Economics 
Pages: 1321-1330 
Issue: 10 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617695 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617695 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:10:p:1321-1330




Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Sin Lee 
Author-X-Name-First: Jen-Sin 
Author-X-Name-Last: Lee 
Author-Name: Pi-Hsia Yen 
Author-X-Name-First: Pi-Hsia 
Author-X-Name-Last: Yen 
Author-Name: Kam   C. Chan 
Author-X-Name-First: Kam   C. 
Author-X-Name-Last: Chan 
Title: Market states and disposition effect: evidence from Taiwan mutual fund investors 
Abstract:
  We study the disposition effect across market states in the context of
 mutual fund investors in Taiwan. Using mutual fund data at the fund and
 individual levels during July 2001 to October 2008, we find that the
 disposition effect varies across market states. Our results suggest that
 investors redeem their mutual fund units more under a bear market than a
 bull market when they have extreme capital losses. When investors have
 moderate capital gains, they are less active in redeeming their mutual
 fund units under a bull market relative to a bear market. Under a neutral
 market, investors actively redeem mutual fund units in both winner and
 loser mutual funds except when they have extreme capital losses. Thus,
 disposition effect is not uniform; it varies by market condition. In
 addition, the disposition effect phenomenon also exists for Taiwan mutual
 fund investors as well. Our findings are robust to aggregate and
 individual investor levels. 
Journal: Applied Economics 
Pages: 1331-1342 
Issue: 10 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617696 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617696 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:10:p:1331-1342




Template-Type: ReDIF-Article 1.0
Author-Name: Roger Svensson 
Author-X-Name-First: Roger 
Author-X-Name-Last: Svensson 
Title: Publicly-funded R&D programs and survival of patents 
Abstract:
  I apply a survival model to a detailed data set of Swedish patents to
 estimate how different financing factors affect the likelihood of patent
 renewal. Since the owners know more about the patents than potential
 external financiers, there is a problem of asymmetric information. To
 overcome this, Sweden has for a long time relied on government support
 rather than Private Venture Capital (PVC). In the empirical analysis, two
 kinds of government loans are unbundled. The empirical results show that
 patents which have received soft government loans in the R&D-phase have a
 higher probability of expiring than patents without such financing. But
 patents that have received more market-oriented government loans during
 the commercialization phase are renewed for as long as other
 commercialized patents. This finding suggests that rather than bad choices
 of projects, it is the nature of the contract terms that explains the low
 renewal of some patents with government financing. 
Journal: Applied Economics 
Pages: 1343-1358 
Issue: 10 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617700 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617700 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:10:p:1343-1358




Template-Type: ReDIF-Article 1.0
Author-Name: Michiel van Leuvensteijn 
Author-X-Name-First: Michiel 
Author-X-Name-Last: van Leuvensteijn 
Author-Name: Christoffer   Kok S&#xF8;rensen 
Author-X-Name-First: Christoffer   Kok 
Author-X-Name-Last: S&#xF8;rensen 
Author-Name: Jacob   A. Bikker 
Author-X-Name-First: Jacob   A. 
Author-X-Name-Last: Bikker 
Author-Name: Adrian   A.R.J.M. van Rixtel 
Author-X-Name-First: Adrian   A.R.J.M. 
Author-X-Name-Last: van Rixtel 
Title: Impact of bank competition on the interest rate pass-through in the euro area 
Abstract:
  This article analyses the impact of loan market competition on the
 interest rates applied by euro area banks to loans during the period
 1994--2004, using a novel measure of competition called the Boone
 indicator. We find evidence that stronger competition implies
 significantly lower spreads between bank and market interest rates for
 most loan market products, in line with expectations. This result implies
 that stronger competition causes both lower bank interest rates and a
 stronger pass-through of market rate changes into bank rates. Evidence of
 the latter is also presented by our Error Correction Model (ECM) for bank
 rates. Further, banks compensate income losses from increased loan market
 competition by offering lower deposit rates. Our findings with respect to
 the loan market rates have important monetary policy implications, as they
 suggest that measures to promote competition in the European banking
 sector are likely to render the monetary policy transmission mechanism
 more effective. 
Journal: Applied Economics 
Pages: 1359-1380 
Issue: 11 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617697 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617697 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:11:p:1359-1380




Template-Type: ReDIF-Article 1.0
Author-Name: Scott Adams 
Author-X-Name-First: Scott 
Author-X-Name-Last: Adams 
Author-Name: Chad Cotti 
Author-X-Name-First: Chad 
Author-X-Name-Last: Cotti 
Author-Name: Daniel Fuhrmann 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Fuhrmann 
Title: The short-term impact of smoke-free workplace laws on fatal heart attacks 
Abstract:
  Using data from across the US, we find that as the number of communities
 adopting smoking bans in workplaces in a state increases or an entire
 state goes smoke-free, there are significant reductions in fatal
 Myocardial Infarctions (MI) among those aged 25--54. The result proves
 durable, as we subject it to an extensive battery of robustness checks.
 These results are smaller in magnitude, however, than published case
 studies analysing the experiences of individual communities passing bans. 
Journal: Applied Economics 
Pages: 1381-1393 
Issue: 11 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617698 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617698 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:11:p:1381-1393




Template-Type: ReDIF-Article 1.0
Author-Name: Colin   T. Bowers 
Author-X-Name-First: Colin   T. 
Author-X-Name-Last: Bowers 
Author-Name: Chris Heaton 
Author-X-Name-First: Chris 
Author-X-Name-Last: Heaton 
Title: What does high-dimensional factor analysis tell us about risk factors in the Australian stock market? 
Abstract:
  Estimates of the cost of equity are often sensitive to the specification
 of the linear factor model used in their construction. In this article, we
 use techniques developed for high-dimensional factor models to consider
 the identity of systematic risk factors in the Australian equities market.
 Our results support the use of neither the Capital Asset Pricing Model
 (CAPM) nor the Fama and French model, although they provide an explanation
 for the empirical performance of these models. Many other model
 specifications are also rejected. We find that a single-factor model with
 an equal-weighted market index is the best model for estimating the cost
 of equity in the Australian context. 
Journal: Applied Economics 
Pages: 1395-1404 
Issue: 11 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617699 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617699 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:11:p:1395-1404




Template-Type: ReDIF-Article 1.0
Author-Name: Tieli Li 
Author-X-Name-First: Tieli 
Author-X-Name-Last: Li 
Author-Name: Miao Fu 
Author-X-Name-First: Miao 
Author-X-Name-Last: Fu 
Author-Name: Xiaolan Fu 
Author-X-Name-First: Xiaolan 
Author-X-Name-Last: Fu 
Title: Regional technology development path in an open developing economy: evidence from China 
Abstract:
  This article explores the paths of regional technology development in a
 large open developing economy. Findings from the research based on Chinese
 data suggest a differentiated approach to regional technology development.
 In technologically advanced regions, indigenous R&D plays a more important
 role than learning-by-doing while in backward regions the latter becomes
 more important. Interregional technology transfer is found to have a more
 significant impact on regional technology development than Foreign Direct
 Investment (FDI) and its effect intensifies when the technology level of
 the recipient region is close to the technological frontier. R&D plays a
 key role in both the assimilation of foreign technologies in advanced
 regions and the assimilation of interregional technology transfer;
 learning-by-doing only affects the latter. 
Journal: Applied Economics 
Pages: 1405-1418 
Issue: 11 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617701 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617701 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:11:p:1405-1418




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Boitani 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Boitani 
Author-Name: Marcella Nicolini 
Author-X-Name-First: Marcella 
Author-X-Name-Last: Nicolini 
Author-Name: Carlo Scarpa 
Author-X-Name-First: Carlo 
Author-X-Name-Last: Scarpa 
Title: Do competition and ownership matter? Evidence from local public transport in Europe 
Abstract:
  This article investigates how the ownership and the selection procedure
 of firms operating in the Local Public Transport (LPT) sector affect their
 productivity. In order to compare different institutional regimes, we
 carry out a comparative analysis of 77 companies operating in large
 European cities over the period 1997 to 2006. This allows us to consider
 firms selected either through competitive tendering or negotiated
 procedures. Retrieving the residuals we obtain a measure of Total Factor
 Productivity (TFP), which we regress on firm and city characteristics. We
 find that totally or partially public firms display lower productivity
 than privately owned firms. Moreover, firms selected through competitive
 tendering display higher TFP. 
Journal: Applied Economics 
Pages: 1419-1434 
Issue: 11 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617702 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617702 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:11:p:1419-1434




Template-Type: ReDIF-Article 1.0
Author-Name: Vadym Volosovych 
Author-X-Name-First: Vadym 
Author-X-Name-Last: Volosovych 
Title: Risk sharing from international factor income: explaining cross-country differences 
Abstract:
  Access to world capital markets and net investment income flows between
 countries help protect national income from country-specific output
 shocks. I empirically study what factors explain cross-country differences
 in the extent of risk sharing from international factor income. An index
 of investor protection is the leading causal variable for the estimated
 amount of risk sharing over the 1985 to 2004 period. Improving investor
 protection in Russia to Denmark's level implies five times larger risk
 sharing compared to the sample average. These results indicate one
 possible way to reap large potential benefits from international risk
 sharing. 
Journal: Applied Economics 
Pages: 1435-1459 
Issue: 11 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617703 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617703 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:11:p:1435-1459




Template-Type: ReDIF-Article 1.0
Author-Name: Johannes Sauer 
Author-X-Name-First: Johannes 
Author-X-Name-Last: Sauer 
Author-Name: Catherine   J. Morrison Paul 
Author-X-Name-First: Catherine   J. Morrison 
Author-X-Name-Last: Paul 
Title: The empirical identification of heterogeneous technologies and technical change 
Abstract:
  When different technologies are present in an industry, we assume that a
 homogeneous technology will lead to misleading implications about
 technical change and inefficient policy recommendations. In this article a
 latent class modelling approach and flexible estimation of the production
 structure is used to distinguish different technologies for a
 representative sample of EU dairy producers, as an industry exhibiting
 significant structural changes and differences in production systems in
 the past decades. The model uses a transformation function to recognize
 multiple outputs; separate technological classes based on multiple
 characteristics, a flexible generalized linear functional form, a variety
 of inputs and random effects to capture firm heterogeneity; and measures
 of first- and second-order elasticities to represent technical change and
 biases. We find that if multiple production frontiers are embodied in the
 data, different firms exhibit different output or input intensities and
 changes associated with different production systems that are veiled by
 overall (average) measures. In particular, we find that farms that are
 larger and more capital intensive experience greater productivity,
 technical progress and labour savings, and enjoy scale economies that have
 increased over time. 
Journal: Applied Economics 
Pages: 1461-1479 
Issue: 11 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.617704 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617704 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:11:p:1461-1479




Template-Type: ReDIF-Article 1.0
Author-Name: James   A. Yunker 
Author-X-Name-First: James   A. 
Author-X-Name-Last: Yunker 
Author-Name: Alice Melkumian 
Author-X-Name-First: Alice 
Author-X-Name-Last: Melkumian 
Title: Optimal diversification and risk-taking: a theoretical and empirical analysis 
Abstract:
  Among the justifications for capital property income received by private
 households is that it is a &#x2018;return to risk-taking&#x2019;. However,
 portfolio diversification provides an obvious means toward the reduction
 of risk. Moreover, it is widely believed that the wealthier the household,
 the more diversification it practices: the larger tends to be the
 proportion of its total portfolio allocated to publicly traded stock, and
 the larger tends to be the number of individual stock issues included in
 its portfolio. Using a simple &#x2018;homogeneous securities&#x2019;
 model, explicit functional forms are obtained for both the optimal
 proportion of the portfolio allocated to stocks, and the optimal number of
 individual stock issues in the portfolio. Empirical evaluation of these
 theoretical results, using a dataset derived from the 2004 Survey of
 Consumer Finances (SCF), lends substantial support to the model. Applying
 these empirical results, it is found that as household capital wealth
 increases, expected capital income increases while simultaneously a
 reasonable risk indicator (the probability of incurring a negative return
 on the capital portfolio) decreases owing to the higher level of portfolio
 diversification. This indication casts significant doubt on the
 &#x2018;return to risk-taking&#x2019; justification for capital property
 income received by wealthy private households. 
Journal: Applied Economics 
Pages: 1481-1492 
Issue: 11 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.619498 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.619498 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:11:p:1481-1492




Template-Type: ReDIF-Article 1.0
Author-Name: Martina Celidoni 
Author-X-Name-First: Martina 
Author-X-Name-Last: Celidoni 
Title: Vulnerability to poverty: an empirical comparison of alternative measures 
Abstract:
  This article compares empirically the several measures of individual
 vulnerability to poverty proposed in the literature, in order to
 understand which is the best signal of poverty that can be used for policy
 purposes. To this aim, the Receiver Operating Characteristic (ROC) curve,
 the Pearson and Spearman correlation coefficients are used as precision
 criteria. The results show that two groups of indexes can be identified,
 high and low performers, and, among the former, that proposed by Dutta
 <italic>et&#xA0;al</italic>. (2011) is the most precise. 
Journal: Applied Economics 
Pages: 1493-1506 
Issue: 12 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.624271 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.624271 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:12:p:1493-1506




Template-Type: ReDIF-Article 1.0
Author-Name: Gianni Amisano 
Author-X-Name-First: Gianni 
Author-X-Name-Last: Amisano 
Author-Name: Maria   Letizia Giorgetti 
Author-X-Name-First: Maria   Letizia 
Author-X-Name-Last: Giorgetti 
Title: Diversification by entry into a new submarket? 
Abstract:
  Using a dataset on the subsector and geographical segmentation of 208
 Pharmaceutical companies, a Bayesian panel probit is used to analyze the
 role of state dependency, size and achieved diversification in affecting
 entry decision. We properly account for unobservable heterogeneity in a
 context with nonstrictly exogenous regressors. We find that achieved
 diversification, measured by the number of submarkets already entered
 affects negatively the probability of entry. Beside some country-specific
 exceptions, size and the lagged dependent variable do not seem to be
 relevant. 
Journal: Applied Economics 
Pages: 1507-1518 
Issue: 12 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.628297 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.628297 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:12:p:1507-1518




Template-Type: ReDIF-Article 1.0
Author-Name: P. Ormerod 
Author-X-Name-First: P. 
Author-X-Name-Last: Ormerod 
Author-Name: B. Rosewell 
Author-X-Name-First: B. 
Author-X-Name-Last: Rosewell 
Author-Name: P. Phelps 
Author-X-Name-First: P. 
Author-X-Name-Last: Phelps 
Title: Inflation/unemployment regimes and the instability of the Phillips curve 
Abstract:
  Using the statistical technique of fuzzy clustering, regimes of inflation
 and unemployment are explored for the United States, the United Kingdom
 and Germany between 1871 and 2009. We identify for each country three
 distinct regimes in inflation/unemployment space. Similarities exist
 across countries in both the regimes and the timings of the transitions
 between regimes. However, the typical rates of inflation and unemployment
 experienced in the regimes are substantially different. Further, even
 within a given regime, the results from the cluster analysis reveal
 persistent fluctuations in the degree of attachment to that regime of
 inflation/unemployment observations over time. The economic implications
 of this are that, first, the inflation/unemployment relationship or
 Phillips curve experiences from time to time major shifts. Second, that it
 is also inherently unstable even in the short run. It is likely that the
 factors which govern the inflation/unemployment trade-off are so
 multi-dimensional that it is hard to identify periods of short-run
 Phillips curves which can be assigned to particular historical periods
 with any degree of accuracy or predictability. The analysis shows that
 reliance on a trade-off between inflation and unemployment for policy
 purposes is misplaced even in the short run. 
Journal: Applied Economics 
Pages: 1519-1531 
Issue: 12 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.628299 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.628299 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:12:p:1519-1531




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Author-Name: Fernando Zanella 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Zanella 
Title: Testing for the government's intertemporal budget restriction in Brazil during 1823--1889 
Abstract:
  This article tests whether the government's intertemporal budget
 restriction was fulfilled during the Brazilian imperial period
 (1823--1889). To accomplish this, newly developed tests for cointegration
 with unknown structural breaks are applied. It is found that government
 spending and government revenue are cointegrated if the effect of two
 unknown structural breaks is taken into account. The estimated parameter
 vector reveals that the one-by-one relationship that is required for
 solvency does not prevail for the sub-periods before and after the first
 break, however it prevails for the sub-period after the second break. We
 interpret these findings as empirical support for the long-run government
 solvency in Brazil at the end of the imperial period. 
Journal: Applied Economics 
Pages: 1533-1540 
Issue: 12 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.629984 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.629984 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:12:p:1533-1540




Template-Type: ReDIF-Article 1.0
Author-Name: R. Rosillo 
Author-X-Name-First: R. 
Author-X-Name-Last: Rosillo 
Author-Name: D. de la Fuente 
Author-X-Name-First: D. 
Author-X-Name-Last: de la Fuente 
Author-Name: J. A. L. Brugos 
Author-X-Name-First: J. A. L. 
Author-X-Name-Last: Brugos 
Title: Technical analysis and the Spanish stock exchange: testing the RSI, MACD, momentum and stochastic rules using Spanish market companies 
Abstract:
  The aim of this research is to examine the result of the application of
 the indicators Relative Strength Index (RSI), Moving Average Convergence
 Divergence (MACD), Momentum and Stochastic in different companies of the
 Spanish continuous market. By using these indicators, it is intended to
 give purchase and sale recommendations to small investors. The generation
 of great capital gains depends on the type of the stock exchange company
 and the indicator which is being used. In addition, this research solves
 the problems in case of ambiguity, in the indicators, for the traders. 
Journal: Applied Economics 
Pages: 1541-1550 
Issue: 12 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.631894 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.631894 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:12:p:1541-1550




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Lamo 
Author-X-Name-First: Ana 
Author-X-Name-Last: Lamo 
Author-Name: Javier   J. P鲥z 
Author-X-Name-First: Javier   J. 
Author-X-Name-Last: P鲥z 
Author-Name: Ludger Schuknecht 
Author-X-Name-First: Ludger 
Author-X-Name-Last: Schuknecht 
Title: The cyclicality of consumption, wages and employment of the public sector in the euro area 
Abstract:
  This study empirically examines the business cycle behaviour of public
 consumption and its main components, the public wage bill (including its
 breakdown into compensation per employee and public employment) and
 intermediate consumption, in the euro area aggregate, euro area countries
 and a group of selected non-euro area Organization for Economic
 Co-operation and Development (OECD) countries (Denmark, Sweden, the UK,
 Japan and the US). It looks across a large number of variables and
 methods, using annual data from 1960 to 2005. It finds robust evidence
 supporting that public consumption, wages and employment co-move with the
 business cycle in a pro-cyclical manner with 1--2 year lags, notably for
 the euro area aggregate and euro area countries. The findings reflect
 mainly the correlation between cyclical developments, but also point to an
 important role of pro-cyclical discretionary fiscal policies. 
Journal: Applied Economics 
Pages: 1551-1569 
Issue: 12 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.631895 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.631895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:12:p:1551-1569




Template-Type: ReDIF-Article 1.0
Author-Name: H&#xE5;kan Eggert 
Author-X-Name-First: H&#xE5;kan 
Author-X-Name-Last: Eggert 
Author-Name: Viktoria Kahui 
Author-X-Name-First: Viktoria 
Author-X-Name-Last: Kahui 
Title: Reference-dependent behaviour of paua (abalone) divers in New Zealand 
Abstract:
  We study dynamic labour supply using data on paua (abalone) divers in New
 Zealand. The divers face stable, flat prices per kilogram after each
 catch, but experience transitory wage changes due to varying weather and
 water conditions, and are free to vary their daily working hours and
 display an intermittent working pattern. We find nonlinear wage
 elasticities, rejecting the standard neo-classical prediction that these
 divers should work long hours during days when wages are high and quit
 early during days when hourly wages are low. We explore potentially
 distorting factors, but find little evidence. Applying K&#x151;szegi and
 Rabin's (2006) theory where workers have both income and hours targets
 could explain our result. In particular, our divers appear to be primarily
 guided by the hours target. 
Journal: Applied Economics 
Pages: 1571-1582 
Issue: 12 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.631896 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.631896 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:12:p:1571-1582




Template-Type: ReDIF-Article 1.0
Author-Name: N. Zubanov 
Author-X-Name-First: N. 
Author-X-Name-Last: Zubanov 
Author-Name: H. D. Webbink 
Author-X-Name-First: H. D. 
Author-X-Name-Last: Webbink 
Author-Name: N. G. Martin 
Author-X-Name-First: N. G. 
Author-X-Name-Last: Martin 
Title: The effect of schooling on problem drinking: evidence from Australian twins 
Abstract:
  We relate differences in problem drinking symptoms within pairs of
 identical twins to their respective differences in years of schooling.
 Isolating in this way the influences of family background and genes, we
 find that an increase in schooling attainment results in a significantly
 lower incidence of problem drinking for men. Thus, an extra year of
 schooling reduces the number of health problems caused by drinking by
 0.14, and the probability of developing symptoms of Alcohol Dependence
 (AD) by 0.06. This negative link is robust to a variety of modifications
 to the identifying assumptions underlying our statistical analysis.
 Socio-economic implications of our findings are discussed. 
Journal: Applied Economics 
Pages: 1583-1599 
Issue: 12 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.631897 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.631897 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:12:p:1583-1599




Template-Type: ReDIF-Article 1.0
Author-Name: Matthieu Bussi&#xE8;re 
Author-X-Name-First: Matthieu 
Author-X-Name-Last: Bussi&#xE8;re 
Title: Balance of payment crises in emerging markets: how early were the &#x2018;early&#x2019; warning signals? 
Abstract:
  Although many papers have already proposed empirical models of currency
 crises, the timing of such crises has received relatively little attention
 so far. Most papers use indeed a static specification and impose the same
 lag structure across all explanatory variables. This, by construction,
 prevents from specifically timing the crisis signals sent by the leading
 indicators. The objective here is to fill this gap by considering a set of
 dynamic discrete choice models. The first contribution is to identify how
 early in advance each explanatory variable sends a warning signal. Some
 indicators are found to signal a crisis in the very short run while others
 signal a crisis at more distant horizons. The second contribution is to
 show that state dependence matters, albeit mostly in the short run. The
 results have important implications for crisis prevention in terms of the
 timeliness and usefulness of the envisaged policy response. 
Journal: Applied Economics 
Pages: 1601-1623 
Issue: 12 
Volume: 45 
Year: 2013 
Month: 4 
X-DOI: 10.1080/00036846.2011.633891 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633891 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:12:p:1601-1623




Template-Type: ReDIF-Article 1.0
Author-Name: Alexandre Dmitriev 
Author-X-Name-First: Alexandre 
Author-X-Name-Last: Dmitriev 
Title: Institutions and growth: evidence from estimation methods robust to weak instruments 
Abstract:
  This article focuses on the empirical approach proposed by Hall and Jones
 (1999) to estimate the effect of what they call &#x2018;social
 infrastructure&#x2019; on productivity across countries. We consider the
 issue of weak identification in their linear instrumental variables model.
 The evidence obtained from partially robust estimators, such as the
 <italic>k</italic>-class and jackknife estimators, is interpreted on the
 basis of Monte Carlo studies. Our findings suggest that using certain
 <italic>k</italic>-class estimators allows exclusive reliance on the
 linguistic variables to instrument for institutional quality despite their
 low correlation with the endogenous regressor in question. 
Journal: Applied Economics 
Pages: 1625-1635 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.633892 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633892 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1625-1635




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani 
Author-X-Name-First: Hamid 
Author-X-Name-Last: Baghestani 
Title: Evaluating Federal Reserve predictions of growth in consumer spending 
Abstract:
  This study shows that Federal Reserve forecasts of growth in both total
 consumption and durable spending are generally rational under asymmetric
 loss, and the forecasts of growth in nondurable (services) spending, while
 unbiased (biased), fail to be rational. Yet, these forecasts are all
 directionally accurate. The forecasts of growth in total consumption,
 durable and services spending are more (less) accurate in predicting the
 downward (upward) moves and are thus of value when policymakers assign
 more (less) cost to incorrect downward (upward) predictions. The forecasts
 of growth in nondurable spending are equally accurate in predicting the
 downward and upward moves and are thus of value when policymakers assign
 similar cost to both incorrect downward and upward predictions. Utilizing
 survey data to measure the private forecasts, we further provide partial
 support for the asymmetric information hypothesis that the Federal Reserve
 has useful information about the state of the economy that is not known by
 the public. 
Journal: Applied Economics 
Pages: 1637-1646 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.633893 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633893 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1637-1646




Template-Type: ReDIF-Article 1.0
Author-Name: Ernesto Aguayo-T鬬ez 
Author-X-Name-First: Ernesto 
Author-X-Name-Last: Aguayo-T鬬ez 
Author-Name: Jos頍art󹑺-Navarro 
Author-X-Name-First: Jos頍
Author-X-Name-Last: Mart󹑺-Navarro 
Title: Internal and international migration in Mexico: 1995--2000 
Abstract:
  Using micro data from Mexico and US 2000 population censuses and
 following a multi-choice variant of Roy's (1951) model, this article pools
 into one model the determinants of internal and international migration in
 M鸩co, while paying explicit attention to the potential problem of
 self-selection. The results reveal that ignoring multiple destinations in
 the migration decision might lead to erroneous inferences about the
 determinants of migration and the type of selection. After controlling for
 wage differences, the results suggest that single adult men with low
 schooling levels tend to migrate to the US while married women and men
 with higher levels of schooling tend to migrate within Mexico. We also
 found that there are strong differences between domestic and international
 social networks. 
Journal: Applied Economics 
Pages: 1647-1661 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.633894 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633894 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1647-1661




Template-Type: ReDIF-Article 1.0
Author-Name: S. P. Thi颡ut 
Author-X-Name-First: S. P. 
Author-X-Name-Last: Thi颡ut 
Author-Name: T. Barnay 
Author-X-Name-First: T. 
Author-X-Name-Last: Barnay 
Author-Name: B. Ventelou 
Author-X-Name-First: B. 
Author-X-Name-Last: Ventelou 
Title: Ageing, chronic conditions and the evolution of future drugs expenditure: a five-year micro-simulation from 2004 to 2029 
Abstract:
  The healthy ageing assumptions may lead to substantial changes in paths
 of aggregate health care expenditure, notably catastrophic expenditure of
 people at the end of the life. But clear assessments of involved amounts
 are not available when we specifically consider ambulatory care (as drug
 expenditure) generally offered to chronically-ill people. We estimate the
 effects of epidemiological and life expectancy changes on French health
 expenditure until 2029 by applying a Markovian micro-simulation model from
 a nationally representative database. The originality of these simulations
 holds in using an aggregate indicator of morbidity--mortality, capturing
 vital risk and making it possible to adapt the quantification of life
 expectancies by taking into account the presence of severe chronic
 pathologies. We forecast future national drugs expenditure, under
 different epidemiological scenarios of chronic morbidity: <italic>trend
 scenario, healthy ageing scenario and medical progress scenario</italic>.
 For the population aged 25+, results predict an increase in reimbursable
 drug expenditure of between 1.1% and 1.8% (annual growth rate),
 attributable solely to the ageing population and changes in health status. 
Journal: Applied Economics 
Pages: 1663-1672 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.633895 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1663-1672




Template-Type: ReDIF-Article 1.0
Author-Name: Karolien De Bruyne 
Author-X-Name-First: Karolien 
Author-X-Name-Last: De Bruyne 
Author-Name: Jan Van Hove 
Author-X-Name-First: Jan 
Author-X-Name-Last: Van Hove 
Title: Explaining the spatial variation in housing prices: an economic geography approach 
Abstract:
  Housing prices vary geographically, even between neighbouring
 municipalities. Local differences can be attributed to differences in
 socio-economic variables and real estate characteristics. This article
 argues that one should additionally take into account the geographical
 location of municipalities. In particular, housing prices are affected by
 distance and travel-time to important economic centres offering jobs and
 extensive services. Following the economic geography literature, we
 develop a model showing the explicit impact of geographical barriers on
 housing prices. As such, we distinguish ourselves from the existing
 literature on the dynamics of housing prices since geographical elements
 are fairly constant over time. We estimate our model on municipality-level
 housing prices for all 589 Belgian municipalities in 2001. We also
 differentiate between the two main regions of Belgium (Flanders and
 Wallonia). Our empirical results confirm expectations. Geographical
 barriers have significantly negative effects on housing prices.
 Nevertheless we find important differences between the Belgian regions and
 the means of transport considered. 
Journal: Applied Economics 
Pages: 1673-1689 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.636021 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1673-1689




Template-Type: ReDIF-Article 1.0
Author-Name: Martin   Bryan Schmidt 
Author-X-Name-First: Martin   Bryan 
Author-X-Name-Last: Schmidt 
Title: Voting with the crowd: do single issues drive partisanship? 
Abstract:
  We examine whether survey data supports the anecdotal evidence which
 suggests that group association impacts the individual's stated beliefs.
 Specifically, we examine whether a rise in the relative importance of a
 single issue, i.e. national security, blurs the traditional importance of
 socio-economic variables in determining an electorate's political party
 association. Further, we examine whether such blurring occurs across the
 responses to questions outside the scope of this single issue. We find
 that in the aftermath of the terrorist attacks on 11 September 2001, the
 relative importance of national security rose in the US electorate and
 reduced the relative importance of socio-economic variables in determining
 the electorate's political association for both security and nonsecurity
 issues. 
Journal: Applied Economics 
Pages: 1691-1700 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.636022 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636022 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1691-1700




Template-Type: ReDIF-Article 1.0
Author-Name: Randall   P. Ellis 
Author-X-Name-First: Randall   P. 
Author-X-Name-Last: Ellis 
Author-Name: Shenyi Jiang 
Author-X-Name-First: Shenyi 
Author-X-Name-Last: Jiang 
Author-Name: Tzu-Chun Kuo 
Author-X-Name-First: Tzu-Chun 
Author-X-Name-Last: Kuo 
Title: Does service-level spending show evidence of selection across health plan types? 
Abstract:
  We provide an explanation for the widespread finding that capitated
 managed care plans attract comparatively healthy, low cost enrollees
 relative to traditional unmanaged plans. Using disaggregated commercial
 insurance claims from the Thomson-Reuters MarketScan database, we show
 that managed care plans spend proportionally less on those types of
 services that are predicted to be more profitable to ration tightly using
 a selection index developed by Ellis and McGuire that captures the
 derivative of profits with respect to reduced spending on disaggregated
 services. Conventional diagnosis-based risk adjusted premiums reduce
 selection incentives by about 50% relative to premiums that are not
 risk-adjusted. 
Journal: Applied Economics 
Pages: 1701-1712 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.636023 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636023 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1701-1712




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Aaron Morey 
Author-X-Name-First: Aaron 
Author-X-Name-Last: Morey 
Title: Regulator flexibility and the administrative allocation licensing of 3G spectrum 
Abstract:
  Globally, most nations assign radio spectrum to provide 3G mobile
 services during the period 1999--2007. While there is consensus among most
 economists that auctions are the preferred assignment mechanism, the
 assignment mode is split, more or less, equally (in terms of the number of
 licences issued) between administrative allocations and auctions. With
 auction procedures tending to raise more revenue for governments
 (Cartelier, 2003) the question that naturally arises is: why are
 administrative allocations so popular a method to assign spectrum?
 McMillan (1995) conjectures that administrative allocations provide
 additional &#x2018;flexibility&#x2019;. Accordingly, this study examines
 the performance of 3G assignments in terms of an econometric analysis of a
 unique sample of national 3G spectrum administrative allocations. These
 outcomes are modelled as depending on spectrum package attributes, and
 post-award network deployment requirements. 
Journal: Applied Economics 
Pages: 1713-1718 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.636024 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636024 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1713-1718




Template-Type: ReDIF-Article 1.0
Author-Name: B. Kriechel 
Author-X-Name-First: B. 
Author-X-Name-Last: Kriechel 
Author-Name: G. A. Pfann 
Author-X-Name-First: G. A. 
Author-X-Name-Last: Pfann 
Title: Workforce reorganization and the worker 
Abstract:
  In this article we study the joint decision process of changing the
 structure of jobs and laying off individual workers in a firm that
 downsizes its workforce. A hierarchical decision model is proposed and
 estimated using personnel data from a firm in demise comparing the
 characteristics of the individual workers and the structure of the firm's
 labour force before and after its reorganization. Our results show that
 workers in jobs in the top levels of each skill group's hierarchy are
 better protected against downsizing due to larger productivity shocks and
 larger firing costs. 
Journal: Applied Economics 
Pages: 1719-1729 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.636025 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636025 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1719-1729




Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Brown 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Brown 
Author-Name: Michael Dietrich 
Author-X-Name-First: Michael 
Author-X-Name-Last: Dietrich 
Author-Name: Aurora   Ortiz Nu&#xF1;ez 
Author-X-Name-First: Aurora   Ortiz 
Author-X-Name-Last: Nu&#xF1;ez 
Author-Name: Karl Taylor 
Author-X-Name-First: Karl 
Author-X-Name-Last: Taylor 
Title: Business ownership and attitudes towards risk 
Abstract:
  We explore the relationship between business ownership and attitudes
 towards financial risk using individual level data drawn from the US
 <italic>Survey of Consumer Finances</italic> (SCF). The SCF includes a
 measure of individuals&#x2019; attitudes towards risk allowing us to
 explore the implications of interpersonal differences in risk attitudes
 for the probability and success of business ownership. Our empirical
 findings suggest that willingness to take financial risk is positively
 associated with both the incidence and success of business ownership. We
 find that this relationship is particularly pronounced in cases where the
 individual actually started the business. 
Journal: Applied Economics 
Pages: 1731-1740 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.636026 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1731-1740




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Kneiding 
Author-X-Name-First: Christoph 
Author-X-Name-Last: Kneiding 
Author-Name: Alexander   S. Kritikos 
Author-X-Name-First: Alexander   S. 
Author-X-Name-Last: Kritikos 
Title: Funding self-employment -- the role of consumer credit 
Abstract:
  This article investigates whether self-employed households use consumer
 loans -- in particular, instalment loans and overdrafts -- to finance
 business activities. Controlling for financial and nonfinancial household
 variables, we show that self-employed households particularly use personal
 overdrafts significantly more often than employee households. When
 analysing the correlation between consumer loan take-ups and consumption
 of self-employed in comparison to employee households, we find first
 evidence that overdrafts are used by self-employed to finance their
 business as well. This indicates that intermingling constitutes a
 financing strategy when regular business loans might not be accessible. 
Journal: Applied Economics 
Pages: 1741-1749 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.637895 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1741-1749




Template-Type: ReDIF-Article 1.0
Author-Name: C. T. Shehzad 
Author-X-Name-First: C. T. 
Author-X-Name-Last: Shehzad 
Author-Name: J. De Haan 
Author-X-Name-First: J. 
Author-X-Name-Last: De Haan 
Author-Name: B. Scholtens 
Author-X-Name-First: B. 
Author-X-Name-Last: Scholtens 
Title: The relationship between size, growth and profitability of commercial banks 
Abstract:
  Using a dynamic panel model for more than 15&#x2009;000 banks from 148
 countries from 1988 to 2010, we investigate the interaction between size,
 growth and profitability of banks. For our total sample, we cannot reject
 the hypotheses that the variability of bank profitability and the level
 and variability of bank growth are independent of bank size. However, in
 high-income Organization for Economic Cooperation and Development (OECD)
 countries bigger banks grow slower but are more profitable than small
 banks. While bank growth is not persistent, bank profitability is
 persistent. Finally, we find that bank growth and bank profitability are
 independent of each other. 
Journal: Applied Economics 
Pages: 1751-1765 
Issue: 13 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.637896 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637896 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:13:p:1751-1765




Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar 
Author-X-Name-First: Saten 
Author-X-Name-Last: Kumar 
Author-Name: Mamta   B. Chowdhury 
Author-X-Name-First: Mamta   B. 
Author-X-Name-Last: Chowdhury 
Author-Name: B.   Bhaskara Rao 
Author-X-Name-First: B.   Bhaskara 
Author-X-Name-Last: Rao 
Title: Demand for money in the selected OECD countries: a time series panel data approach and structural breaks 
Abstract:
  Time series panel data estimation methods are used to estimate the
 cointegrating equations for the demand for money (M1) for a panel of 11
 Organization for Economic Cooperation and Development (OECD) countries for
 which consistent quarterly data are available. The effects of financial
 reforms are analysed with structural break tests and estimates for
 alternative sub-samples. Our results for the post-reform sub-samples show
 that the income elasticity of the demand for money has decreased and
 response to interest rate changes has increased. 
Journal: Applied Economics 
Pages: 1767-1776 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.637897 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637897 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1767-1776




Template-Type: ReDIF-Article 1.0
Author-Name: Franz Fuerst 
Author-X-Name-First: Franz 
Author-X-Name-Last: Fuerst 
Author-Name: George Matysiak 
Author-X-Name-First: George 
Author-X-Name-Last: Matysiak 
Title: Analysing the performance of nonlisted real estate funds: a panel data analysis 
Abstract:
  The rapid growth of nonlisted real estate funds over the last several
 years has contributed towards establishing this sector as a major
 investment vehicle for gaining exposure to commercial real estate.
 Academic research has not kept up with this development, however, as there
 are still only a few published studies on nonlisted real estate funds.
 This article aims to identify the factors driving the total return over a
 7-year period. Influential factors tested in our analysis include the
 weighted underlying direct property returns in each country and sector as
 well as fund size, investment style gearing and the distribution yield.
 Furthermore, we analyse the interaction of nonlisted real estate funds
 with the performance of the overall economy and that of competing asset
 classes and find that lagged Gross Domestic Product (GDP) growth and stock
 market returns as well as contemporaneous government bond rates are
 significant and positive predictors of annual fund performance. 
Journal: Applied Economics 
Pages: 1777-1788 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.637898 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637898 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1777-1788




Template-Type: ReDIF-Article 1.0
Author-Name: B. M. Craven 
Author-X-Name-First: B. M. 
Author-X-Name-Last: Craven 
Author-Name: G. T. Stewart 
Author-X-Name-First: G. T. 
Author-X-Name-Last: Stewart 
Title: Economic implications of socio-cultural correlates of HIV/AIDS: an analysis of global data 
Abstract:
  In formulating economic policy in health affairs where millions of people
 are deemed to be at risk, the evidence that informs such policy must be
 clear and unambiguous. For nearly 30 years there has been a prevailing
 consensus supporting the hypothesis that a retrovirus, Human
 Immunodeficiency Virus (HIV), is the unique and exclusive cause of a
 pandemic of Acquired Immune Deficiency Syndrome (AIDS); that HIV spreads
 heterosexually; and that all who acquire it will inevitably and inexorably
 develop AIDS and eventually die. This article shows that whilst this
 hypothesis is widely and uncritically held the epidemiological data
 collected impartially and globally are consistent with other hypotheses
 where anomalies are fewer. There are substantial resource implications.
 The findings suggest that resources should, especially in African
 countries, be directed away from research into HIV and use of
 anti-retroviral drugs and vaccines into projects to improve basic living
 conditions in the areas of water quality, basic hygiene and nutrition,
 where recurrences of other lethal diseases overlap with HIV/AIDS. 
Journal: Applied Economics 
Pages: 1789-1800 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.639737 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639737 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1789-1800




Template-Type: ReDIF-Article 1.0
Author-Name: Patricio   A. Jaramillo 
Author-X-Name-First: Patricio   A. 
Author-X-Name-Last: Jaramillo 
Author-Name: Juan   Carlos Piantini 
Author-X-Name-First: Juan   Carlos 
Author-X-Name-Last: Piantini 
Title: Multimodality and mixture distributions: an application to a Survey of Economic Expectations 
Abstract:
  In this article we present the Silverman multimodality test and mixture
 distributions methodology, applying both approaches to the Survey of
 Economic Expectations of the Central Bank of Chile. The main results
 reflect the importance of a permanent monitoring of the complete
 distributions and not just central tendency meausures as is the practice
 in many central banks currently. We find that the forecasts of the private
 professional forecasters have systematically been in line with the
 inflation targeting range, although during episodes where the effective
 inflation proved to be outside the target range. 
Journal: Applied Economics 
Pages: 1801-1817 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.639738 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639738 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1801-1817




Template-Type: ReDIF-Article 1.0
Author-Name: Nancy Huyghebaert 
Author-X-Name-First: Nancy 
Author-X-Name-Last: Huyghebaert 
Author-Name: Mathieu Luypaert 
Author-X-Name-First: Mathieu 
Author-X-Name-Last: Luypaert 
Title: Value creation and division of gains in horizontal acquisitions in Europe: the role of industry conditions 
Abstract:
  In this article, we empirically investigate the industry determinants of
 value creation through Mergers and Acquisitions (M&A) and the division of
 M&A gains for a sample of horizontal acquisitions in Europe during the
 period 1997--2008. We calculate the combined abnormal return around deal
 announcement to proxy for M&A value creation. Our results show that
 industry sales concentration and the ratio of the combined target and
 bidder size relative to the minimum efficient scale in the corresponding
 industry are significantly negatively associated with M&A value creation.
 The relation between industry sales growth and M&A gains is U-shaped. The
 extent of foreign competition within the industry, industry technological
 intensity and industry deregulation bear no significant association with
 M&A wealth effects, however. Finally, the data reveal that the division of
 M&A gains between target and bidder investors is determined by firm and
 deal characteristics rather than by industry conditions. 
Journal: Applied Economics 
Pages: 1819-1833 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.639739 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639739 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1819-1833




Template-Type: ReDIF-Article 1.0
Author-Name: Carolina Cosculluela-Mart󹑺 
Author-X-Name-First: Carolina 
Author-X-Name-Last: Cosculluela-Mart󹑺 
Author-Name: Rafael   Flores de Frutos 
Author-X-Name-First: Rafael   Flores 
Author-X-Name-Last: de Frutos 
Title: Housing investment in Spain: has it been the main engine of growth? 
Abstract:
  This article studies dynamic responses of employment and Gross Domestic
 Product (GDP) growth to a permanent, unitary shock in the housing capital
 stock for the Spanish economy. It quantifies the importance of this
 variable in the boom experienced by the Spanish economy during the
 pre-crisis years. Results confirm that building industry has been the most
 important engine for output and labour growth. 
Journal: Applied Economics 
Pages: 1835-1843 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.639740 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639740 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1835-1843




Template-Type: ReDIF-Article 1.0
Author-Name: Meliyanni Johar 
Author-X-Name-First: Meliyanni 
Author-X-Name-Last: Johar 
Author-Name: Denzil   G. Fiebig 
Author-X-Name-First: Denzil   G. 
Author-X-Name-Last: Fiebig 
Author-Name: Marion Haas 
Author-X-Name-First: Marion 
Author-X-Name-Last: Haas 
Author-Name: Rosalie Viney 
Author-X-Name-First: Rosalie 
Author-X-Name-Last: Viney 
Title: Using repeated choice experiments to evaluate the impact of policy changes on cervical screening 
Abstract:
  Australia was one of the first countries to introduce a publicly funded
 Human Papilloma Virus (HPV) vaccine program, and its introduction
 coincided with a media campaign to promote regular cervical screening. One
 issue with HPV vaccination is how it impacts on demand for screening. This
 study examines changes in women's screening preferences following these
 two interventions, using a novel approach to policy evaluation based on
 repeated discrete choice experiments. The study extends our previous
 analysis of attitudes to screening by taking advantage of the timing of
 the choice experiments to examine the impact of the two policy changes on
 determinants of screening. We find that, unexpectedly, willingness to
 screen is generally lower post-interventions. The reason for this trend
 appears to be related to HPV vaccination. We also find that interventions
 have minor impacts on how women value screening attributes. Our approach
 allows us to examine the impact of provider behaviour. A simulation
 demonstrates that under certain conditions, participation rates can be
 increased by 40% to 50% if health providers actively encourage women to
 undertake a cervical screening test. 
Journal: Applied Economics 
Pages: 1845-1855 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.639741 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639741 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1845-1855




Template-Type: ReDIF-Article 1.0
Author-Name: Yunxia Bai 
Author-X-Name-First: Yunxia 
Author-X-Name-Last: Bai 
Author-Name: Bing-Xuan Lin 
Author-X-Name-First: Bing-Xuan 
Author-X-Name-Last: Lin 
Author-Name: Yaping Wang 
Author-X-Name-First: Yaping 
Author-X-Name-Last: Wang 
Author-Name: Liansheng Wu 
Author-X-Name-First: Liansheng 
Author-X-Name-Last: Wu 
Title: Full privatization through controlling rights transfer in China: the extent of its success 
Abstract:
  This article investigates the effect of the second step of privatization
 in China, which is full privatization through controlling rights transfer
 after share issue partial privatization. It finds that fully privatized
 firms perform worse than state-controlled enterprises. Expropriation by
 private block shareholders is greater than that by state block
 shareholders. Furthermore, increase in expropriation is negatively related
 to performance change. The results suggest that full privatization may not
 yield the expected efficiency gains in transition economies with weak
 legal system. They also emphasize the importance of preventing private
 block shareholders from exploiting minority shareholders in the process of
 full privatization. 
Journal: Applied Economics 
Pages: 1857-1867 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.639742 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639742 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1857-1867




Template-Type: ReDIF-Article 1.0
Author-Name: Raghav Gaiha 
Author-X-Name-First: Raghav 
Author-X-Name-Last: Gaiha 
Author-Name: Raghbendra Jha 
Author-X-Name-First: Raghbendra 
Author-X-Name-Last: Jha 
Author-Name: Vani Kulkarni 
Author-X-Name-First: Vani 
Author-X-Name-Last: Kulkarni 
Title: Demand for nutrients in India: 1993 to 2004 
Abstract:
  In response to the Deaton and Dreze (2009) explanation of a downward
 shift in the calorie Engel curve in terms of lower requirements due to
 health improvements and lower activity levels in India, we develop an
 alternative explanation embedded in a standard demand theory framework,
 with food prices and expenditure (as a proxy for income) cast in a pivotal
 role. We find robust food price and expenditure effects and shifting food
 price elasticities. There are shifts in demands due to factors other than
 lower requirements. So, while the Deaton and Dreze (2009) explanation is
 not rejected, it is arguable that it is complementary to the demand based
 explanations. 
Journal: Applied Economics 
Pages: 1869-1886 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.639744 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639744 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1869-1886




Template-Type: ReDIF-Article 1.0
Author-Name: Tristan   D. Skolrud 
Author-X-Name-First: Tristan   D. 
Author-X-Name-Last: Skolrud 
Author-Name: C.   Richard Shumway 
Author-X-Name-First: C.   Richard 
Author-X-Name-Last: Shumway 
Title: A Fourier analysis of the US dairy industry 
Abstract:
  Measurement of economies of scale and scope is particularly important for
 predicting growth and product diversification. However, estimates are
 useful only to the extent the underlying production technology is modelled
 accurately. This study measures economies of scale and scope in the
 rapidly changing US dairy industry with a Fourier flexible cost function,
 which provides a global approximation of the unknown function. We use the
 high quality national Agricultural and Resource Management Survey (ARMS)
 survey data. We find economies of scale at most firm sizes and persistent
 economies of scope across firm sizes in this industry, which is counter to
 estimates from two Diewert&#x2010;flexible functional forms. 
Journal: Applied Economics 
Pages: 1887-1895 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.648319 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648319 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1887-1895




Template-Type: ReDIF-Article 1.0
Author-Name: William   H. Greene 
Author-X-Name-First: William   H. 
Author-X-Name-Last: Greene 
Author-Name: David   A. Hensher 
Author-X-Name-First: David   A. 
Author-X-Name-Last: Hensher 
Title: Revealing additional dimensions of preference heterogeneity in a latent class mixed multinomial logit model 
Abstract:
  Latent class models offer an alternative perspective to the popular mixed
 logit form, replacing the continuous distribution with a discrete
 distribution in which preference heterogeneity is captured by membership
 of distinct classes of utility description. Within each class, preference
 homogeneity is usually assumed, although interactions with observed
 contextual effects are permissible. A natural extension of the fixed
 parameter latent class model is a random parameter latent class model
 which allows for another layer of preference heterogeneity within each
 class. This article sets out the random parameter latent class model and
 illustrates its applications using a stated choice data set on alternative
 freight distribution attribute packages pivoted around a recent trip in
 Australia. 
Journal: Applied Economics 
Pages: 1897-1902 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.650325 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.650325 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1897-1902




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Grabowski 
Author-X-Name-First: Richard 
Author-X-Name-Last: Grabowski 
Author-Name: Sharmistha Self 
Author-X-Name-First: Sharmistha 
Author-X-Name-Last: Self 
Title: Mother's autonomy: impact on the quality of children's healthcare in India 
Abstract:
  Given the poor condition of children's health in developing countries,
 this article seeks to examine two hypotheses concerning healthcare for
 children. First, does mother's autonomy influence the quality of child
 healthcare and, second, which is related to the first, whether mother's
 autonomy reduces the apparent gender bias in child healthcare. Using
 household survey data from Bihar and Uttar Pradesh in India the article
 finds that for the most part as the mother's autonomy (measured several
 different ways) increases, the quality of care for children improves. The
 results also indicate that gender bias exists in the provision of quality
 healthcare for children. Male children generally receive better quality
 care. However, for several measures of female autonomy, an increase in
 such autonomy reduces the bias. The results of this analysis have
 important policy implications and provide additional insight into the
 state of affairs of children's health in rural India. 
Journal: Applied Economics 
Pages: 1903-1913 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.637899 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637899 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1903-1913




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Siminski 
Author-X-Name-First: Peter 
Author-X-Name-Last: Siminski 
Title: Are low-skill public sector workers really overpaid? A quasi-differenced panel data analysis 
Abstract:
  Public--private sectoral wage differentials have been studied extensively
 using quantile regression techniques. These typically find large public
 sector premiums at the bottom of the wage distribution. This may imply
 that low skill workers are &#x2018;overpaid&#x2019;, prompting concerns
 over efficiency. We note several other potential explanations for this
 result and explicitly test whether the premium varies with skill, using
 Australian data. We use a quasi-differenced Generalized Method of Moments
 (GMM) panel data model which has not been previously applied to this
 topic, internationally. Unlike other available methods, this technique
 identifies sectoral differences in returns to unobserved skill. It also
 facilitates a decomposition of the wage gap into components explained by
 differences in returns to all (observed and unobserved) skills and by
 differences in their stock. We find no evidence to suggest that the
 premium varies with skill. One interpretation is that the compressed wage
 profile of the public sector induces the best workers (on unobserved
 skills) to join the public sector in low wage occupations, <italic>vice
 versa</italic> in high wage occupations. We also estimate the average
 public sector premium to be 6% for women and statistically insignificant
 (4%) for men. 
Journal: Applied Economics 
Pages: 1915-1929 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.641928 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641928 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1915-1929




Template-Type: ReDIF-Article 1.0
Author-Name: Y. F. Chia 
Author-X-Name-First: Y. F. 
Author-X-Name-Last: Chia 
Title: Dollars and pounds: the impact of family income on childhood weight 
Abstract:
  This article examines the impact of family income on childhood weight
 status for children in the United States using matched mother-child data
 from the National Longitudinal Survey of Youth (NLSY 79). Instrumental
 variable (IV) models, family Fixed Effects (FE) models and family Fixed
 Effects IV (FEIV) models are estimated in order to control for causality.
 The results suggest that although the prevalence of childhood obesity is
 higher in low-income families in the sample, family income might be acting
 primarily as a proxy for other unobserved characteristics that determine
 the child's weight status rather having a major direct causative role in
 determining the child's weight status. 
Journal: Applied Economics 
Pages: 1931-1941 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.641929 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641929 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1931-1941




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio   F. Galvao 
Author-X-Name-First: Antonio   F. 
Author-X-Name-Last: Galvao 
Author-Name: Gabriel Montes-Rojas 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: Montes-Rojas 
Author-Name: Jose Olmo 
Author-X-Name-First: Jose 
Author-X-Name-Last: Olmo 
Title: A panel data test for poverty traps 
Abstract:
  This article develops a threshold panel data nonlinearity test for
 poverty traps. The new testing strategy extends the work on nonlinearity
 tests for panel data by considering threshold nonlinearities in the
 fixed-effects components. Monte Carlo simulations are conducted to
 evaluate the finite-sample performance of these tests. The tests are
 applied to the relationship between Gross Domestic Product (GDP) per
 capita and capital stock per capita. Our application to a panel of
 countries for the period 1973 to 2007 uncovers the presence of two regimes
 determined by the level of capital stock per capita. The conclusions from
 our test also support the existence of a poverty trap determined by a
 capital stock per capita level at the 11% quantile of its pooled worldwide
 distribution. 
Journal: Applied Economics 
Pages: 1943-1952 
Issue: 14 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.641930 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641930 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:14:p:1943-1952




Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Trenkler 
Author-X-Name-First: Carsten 
Author-X-Name-Last: Trenkler 
Author-Name: Enzo Weber 
Author-X-Name-First: Enzo 
Author-X-Name-Last: Weber 
Title: Testing for codependence of cointegrated variables 
Abstract:
  We analyse nonstationary time series that do not only trend together in
 the long run, but restore the equilibrium immediately in the period
 following a deviation. While this represents a common serial correlation
 feature, the framework is extended to codependence, allowing for delayed
 adjustment. We show which restrictions are implied for the Moving Average
 (MA) and Vector Error Correction Model (VECM) representations and put
 forward a Generalized Method of Moments (GMM) test. In addition, for cases
 where the constraints can be uniquely imposed on a VECM a likelihood ratio
 test is proposed. We apply the concept to US and European interest rate
 data, examining the capability of the Federal Reserve Bank (Fed) and
 European Central Bank (ECB) to control overnight money market rates. 
Journal: Applied Economics 
Pages: 1953-1964 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.641931 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641931 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:1953-1964




Template-Type: ReDIF-Article 1.0
Author-Name: Annabel Vanroose 
Author-X-Name-First: Annabel 
Author-X-Name-Last: Vanroose 
Author-Name: Bert D&#x2019;Espallier 
Author-X-Name-First: Bert 
Author-X-Name-Last: D&#x2019;Espallier 
Title: Do microfinance institutions accomplish their mission? Evidence from the relationship between traditional financial sector development and microfinance institutions&#x2019; outreach and performance 
Abstract:
  This article analyses the relationship between outreach and performance
 of Microfinance Institutions (MFIs) on the one hand and traditional
 financial sector development on the other. The results indicate that MFIs
 reach more clients and are more profitable in countries where access to
 the traditional financial system is low. This finding is in line with the
 market-failure hypothesis: MFIs respond to a need that banks do not
 fulfill and MFIs flourish where the formal financial sector fails. Along
 the same line, the results demonstrate that MFIs serve poorer people in
 countries with well-developed financial systems. The results suggest that
 in countries with well-developed financial systems, the two sectors stand
 in more direct competition with each other. This competition pushes MFIs
 down the market and makes mission drift by MFIs less likely. 
Journal: Applied Economics 
Pages: 1965-1982 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.641932 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641932 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:1965-1982




Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale 
Author-X-Name-First: Tony 
Author-X-Name-Last: Caporale 
Author-Name: Trevor   C. Collier 
Author-X-Name-First: Trevor   C. 
Author-X-Name-Last: Collier 
Title: Scouts versus Stats: the impact of <italic>Moneyball</italic> on the Major League Baseball draft 
Abstract:
  Michael Lewis&#x2019; influential book <italic>Moneyball</italic> (2003)
 discusses several sources of inefficiency in the Major League Baseball
 (MLB) labour market; one of these being the failure of baseball scouts to
 place a draft premium on college players. We test this implication of the
 <italic>Moneyball</italic> thesis -- the superiority of college players --
 by measuring the productivity of players who were drafted in the first
 round of five MLB drafts covering the years 1995--1999. Employing a
 variety of specifications, we find that the performance of college draft
 choices is no better than those of high school picks and argue that this
 is consistent with Hayek's (1944) work on the economics of information and
 his emphasis on the importance of localized knowledge. Additionally, we
 utilize data on the first three rounds of the MLB draft from 1965 to 2010
 to test whether Lewis&#x2019; book had any impact on teams&#x2019; draft
 strategies. We find no significant structural change in the draft
 following the publication of <italic>Moneyball</italic>. 
Journal: Applied Economics 
Pages: 1983-1990 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.641933 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641933 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:1983-1990




Template-Type: ReDIF-Article 1.0
Author-Name: R. Montizaan 
Author-X-Name-First: R. 
Author-X-Name-Last: Montizaan 
Author-Name: F. C&#xF6;rvers 
Author-X-Name-First: F. 
Author-X-Name-Last: C&#xF6;rvers 
Author-Name: A. de Grip 
Author-X-Name-First: A. 
Author-X-Name-Last: de Grip 
Title: Training and retirement patterns 
Abstract:
  Life-cycle theory predicts that employers enter into implicit contracts
 with newly hired employees to ensure rent-sharing and to decrease turnover
 after firm-specific training investments. Typically, these implicit
 contracts would include both upward sloping earning profiles and mandatory
 retirement. In this article, we empirically test the prediction that
 workers with firm-specific skills are restrained in their options to
 continue working. Therefore, they are more likely to retire at common
 mandatory retirement dates than those with general skills. Using the US
 National Longitudinal Survey of Older Men, we find that workers who
 participated in firm-specific training in their early careers do indeed
 retire earlier than those with general skills. The results show that
 compulsory retirement plans force these older workers to retire when they
 reach the common mandatory retirement age of 65. The results presented in
 this article are highly relevant for public policies in European and other
 industrialized countries that aim to increase labour force participation
 of the elderly. As our study demonstrates, the effectiveness of
 institutional arrangements to postpone retirement will also depend on
 training policies of employers and the type of skills workers acquired in
 the past. 
Journal: Applied Economics 
Pages: 1991-1999 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.646066 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.646066 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:1991-1999




Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale 
Author-X-Name-First: Tony 
Author-X-Name-Last: Caporale 
Author-Name: Julia Paxton 
Author-X-Name-First: Julia 
Author-X-Name-Last: Paxton 
Title: Inflation stationarity during Latin American inflation: insights from unit root and structural break analysis 
Abstract:
  Inflation stationarity has important theoretical and policy implications,
 yet most of the literature has focused on low inflation countries. This
 article investigates inflation stationarity in Brazil, Argentina, Chile,
 Mexico and Bolivia during a hyperinflationary period from 1980 to 2004. We
 test for structural breaks in inflation, discuss the breaks in terms of
 changes in monetary regimes, and test if accounting for these structural
 breaks changes the nonstationarity results for those nations that
 &#x2018;fail&#x2019; the traditional Augmented Dickey--Fuller (ADF) test
 for inflation. All five are found to have inflation rates that are
 <italic>I</italic>(0) once the structural breaks analysis is incorporated
 into our unit root tests. 
Journal: Applied Economics 
Pages: 2001-2010 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.646067 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.646067 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2001-2010




Template-Type: ReDIF-Article 1.0
Author-Name: Azzeddine Azzam 
Author-X-Name-First: Azzeddine 
Author-X-Name-Last: Azzam 
Author-Name: Belaid Rettab 
Author-X-Name-First: Belaid 
Author-X-Name-Last: Rettab 
Title: Market power versus efficiency under uncertainty: conventional versus Islamic banking in the GCC 
Abstract:
  In this article we estimate the effect of concentration on intermediation
 margins in Gulf Cooperation Council's (GCC) Islamic and conventional
 banking under the assumption that margins are uncertain. The empirical
 model, which we formally derive from an expected utility maximization
 problem, allows us to test for risk aversion as well as competitive
 conduct in loan and the deposit markets. The model also yields an
 expression showing that the effect of concentration on margins is the sum
 of its respective effects on market power, marginal cost of intermediation
 and marginal cost of uncertainty. The expression allows us to test whether
 concentration is welfare enhancing, reducing or neutral. We find Islamic
 banks to be risk-averse and conventional banks to be risk-neutral. We also
 find that concentration is welfare-neutral in Islamic loans and deposits,
 welfare-enhancing in conventional loans and welfare-neutral in
 conventional deposits. We used Nonlinear Two-Stage Least Squares (N2SLS)
 and Nonlinear Three-Stage Least Squares (N3SLS) to check for robustness. 
Journal: Applied Economics 
Pages: 2011-2022 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.646068 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.646068 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2011-2022




Template-Type: ReDIF-Article 1.0
Author-Name: Boon   L. Lee 
Author-X-Name-First: Boon   L. 
Author-X-Name-Last: Lee 
Title: Productivity, technical and efficiency change in Singapore's services sector, 2005 to 2008 
Abstract:
  The current study was motivated by statements made by the Economic
 Strategies Committee that Singapore's recent productivity levels in
 services were well below countries such as the US, Japan and Hong Kong.
 Massive employment of foreign workers was cited as the reason for poor
 productivity levels. To shed more light on Singapore's falling
 productivity, a nonparametric Malmquist productivity index was employed
 which provides measures of productivity change, technical change and
 efficiency change. The findings reveal that growth in Total Factor
 Productivity (TFP) was attributed to technical change with no improvement
 in efficiency change. Such results suggest that gains from TFP were
 input-driven rather than from a &#x2018;best-practice&#x2019; approach
 such as improvements in operations or better resource allocation. 
Journal: Applied Economics 
Pages: 2023-2029 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.646069 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.646069 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2023-2029




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy   Tyler Brown 
Author-X-Name-First: Timothy   Tyler 
Author-X-Name-Last: Brown 
Title: A monetary valuation of individual religious behaviour: the case of prayer 
Abstract:
  The majority of the US population is religious. The value of a
 fundamental religious behaviour, prayer, is determined using the
 well-being valuation method. Theoretically appropriate Instrumental
 Variables (IV) are used to avoid bias in estimating the effects of
 household income and the frequency of prayer on well-being. The marginal
 value of an additional weekly prayer session for individuals already at
 the national mean is estimated to be $6550 per annum (2004 dollars).
 Praying at the frequency of the national mean of 8.1 prayer sessions
 weekly is valued at $53&#x2009;055 (2004 dollars) per annum. This is
 larger than the median household income in the US in 2004: $44&#x2009;684.
 This suggests that the perception of communion with God is highly valued
 by religious individuals. 
Journal: Applied Economics 
Pages: 2031-2037 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.648318 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648318 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2031-2037




Template-Type: ReDIF-Article 1.0
Author-Name: Kanittha Tambunlertchai 
Author-X-Name-First: Kanittha 
Author-X-Name-Last: Tambunlertchai 
Author-Name: Andreas Kontoleon 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Kontoleon 
Author-Name: Madhu Khanna 
Author-X-Name-First: Madhu 
Author-X-Name-Last: Khanna 
Title: Assessing participation in voluntary environmental programmes in the developing world: the role of FDI and export orientation on ISO14001 adoption in Thailand 
Abstract:
  Empirical assessments of the determinants of firm participation in
 Voluntary Environmental Programmes (VEPs) in the developing world are
 largely absent from the environmental regulation literature, leaving a
 number of important factors unique to such countries unexplored. This
 article examines these factors, namely the roles played by Foreign Direct
 Investment (FDI) and export orientation, in addition to factors deemed
 important in the industrialized world context to the problem of ISO14001
 adoption in one developing nation, Thailand. We make use of unique primary
 data from 494 firms, and focus on three important industries, the
 resource-based food and beverages industry, the labour-intensive textiles
 and wearing apparel industry, and the more high-technology electronics and
 electrical appliances industry. We find that FDI plays a role in ISO14001
 adoption, especially FDI from Organization for Economic Co-operation and
 Development (OECD) and ISO14001-rich countries. Other important
 determinants include firm size, experience with ISO9000, and production of
 intermediate products. Firms faced with fewer obstacles to environmental
 improvements such as those facing lower costs, having more understanding
 of the procedure, and with greater access to the appropriate technology
 are also more likely to adopt ISO14001. 
Journal: Applied Economics 
Pages: 2039-2048 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.648320 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648320 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2039-2048




Template-Type: ReDIF-Article 1.0
Author-Name: Victoria Serra-Sastre 
Author-X-Name-First: Victoria 
Author-X-Name-Last: Serra-Sastre 
Author-Name: Alistair McGuire 
Author-X-Name-First: Alistair 
Author-X-Name-Last: McGuire 
Title: Information and diffusion of new prescription drugs 
Abstract:
  This article examines the role of different product information flows on
 the diffusion of new pharmaceuticals. Given the innovative nature of
 pharmaceutical drugs and their impact on health care expenditure there is
 a surprisingly small literature devoted to this topic. Some information
 flow mechanisms have been examined individually in the literature, but
 very few have captured the simultaneous impact of these mechanisms on
 up-take and diffusion. This article uses the up-take of statins as an
 example. Diffusion of this therapeutical group is expressed as a function
 of four specific informational channels: self-experience, consumption
 externalities, scientific evidence and marketing. In addition to this, the
 influence of economic factors is tested to examine whether they have any
 role in drug diffusion. Prescription data from over 130 General
 Practitioners (GP) practices in the UK during 1991--2004 are used to test
 the econometric specification applying dynamic panel data methods. Results
 suggest individual self-experience and clinical evidence are major factors
 promoting diffusion, while there is an inverse relationship with GP
 practice size and diffusion. Having controlled for these factors financial
 incentives and marketing appear to play little role. 
Journal: Applied Economics 
Pages: 2049-2057 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.648321 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648321 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2049-2057




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas   W. Zuehlke 
Author-X-Name-First: Thomas   W. 
Author-X-Name-Last: Zuehlke 
Title: Estimation and testing of nonproportional Weibull hazard models 
Abstract:
  Most applications of the Weibull hazard model specify a common shape
 parameter. This is a proportional hazard model that imposes a common rate
 of duration dependence. A wide class of nonproportional Weibull models may
 be estimated by making the shape parameter a linear function of observable
 regressors. The log-likelihood function for these models is well behaved.
 The conditions under which this generalization is useful are essentially
 the same conditions under which interaction terms are useful in classical
 regression. Since the nonproportional model nests the proportional model,
 a formal test for nonproportionality may be conducted by likelihood ratio
 test. Estimation and testing of nonproportional models is illustrated with
 data sets for housing sales, out-of-court settlements and oil field
 exploration. Finally, estimation of a proportional Weibull model after
 adding temporal interaction terms to the regressors that specify the scale
 parameter is shown to be a fundamental misspecification. The standard
 log-likelihood function fails to recognize the stochastic nature of
 temporal interaction terms and the resulting estimates often fall outside
 the parameter space of the Weibull. 
Journal: Applied Economics 
Pages: 2059-2066 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.648322 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648322 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2059-2066




Template-Type: ReDIF-Article 1.0
Author-Name: I. Sheldon 
Author-X-Name-First: I. 
Author-X-Name-Last: Sheldon 
Author-Name: S.   Khadka Mishra 
Author-X-Name-First: S.   Khadka 
Author-X-Name-Last: Mishra 
Author-Name: D. Pick 
Author-X-Name-First: D. 
Author-X-Name-Last: Pick 
Author-Name: S. R. Thompson 
Author-X-Name-First: S. R. 
Author-X-Name-Last: Thompson 
Title: Exchange rate uncertainty and US bilateral fresh fruit and fresh vegetable trade: an application of the gravity model 
Abstract:
  In order to analyse the effect of exchange rate uncertainty, we apply an
 empirical gravity equation to two sets of US bilateral trade data: fresh
 fruit over the period 1976--1999 for a panel of 26 countries; and fresh
 vegetables over the period 1976--2006 for a panel of nine countries. Based
 on panel estimation methods, and using both a moving SD measure and the
 Per饠and Steinherr (1989) measure of exchange rate uncertainty, the
 results show that US bilateral fresh fruit trade has been negatively
 affected by exchange rate uncertainty. We also find some evidence that the
 exchange rate between the US dollar and the currencies of Latin American
 trading partners accounts for most of the negative impact of exchange rate
 uncertainty on bilateral trade flows in fresh fruit. In contrast, when
 using panel estimation methods and both measures of exchange rate
 uncertainty, we find no statistically significant evidence for any
 negative effect of exchange rate uncertainty on US bilateral fresh
 vegetable trade. However, we do find a statistically significant negative
 effect for exchange rate uncertainty when we estimate a US export gravity
 equation for fresh vegetables using the same panel of countries. 
Journal: Applied Economics 
Pages: 2067-2082 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.650330 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.650330 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2067-2082




Template-Type: ReDIF-Article 1.0
Author-Name: E. Feess 
Author-X-Name-First: E. 
Author-X-Name-Last: Feess 
Author-Name: C. R. Schumacher 
Author-X-Name-First: C. R. 
Author-X-Name-Last: Schumacher 
Title: The elasticity of demand for wagering in an unregulated market 
Abstract:
  The literature estimating the take-out rate (price) elasticity of horse
 race wagering has consistently found values far above one. The persistence
 of these apparently inefficiently high prices can be attributed to
 institutional factors of the US market where federal taxes are imposed on
 the total amount wagered, and not on the bookmakers&#x2019; revenue. By
 investigating all horse races in New Zealand from August 1993 to April
 2009, our article is the first one to consider price setting for wagering
 in an unregulated market where taxes for a monopolistic betting agency are
 based on revenues. In such a setting, one would expect elasticities close
 to one, but in all econometric specifications, we find values well below
 one. We identify two reasons why higher prices could nevertheless reduce
 profits: cross price elasticities are negative and, due to the specific
 features of parimutuel betting, international competitors may only be
 attracted when take-out rates are above a critical threshold. 
Journal: Applied Economics 
Pages: 2083-2090 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2011.650331 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.650331 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2083-2090




Template-Type: ReDIF-Article 1.0
Author-Name: H. Okudaira 
Author-X-Name-First: H. 
Author-X-Name-Last: Okudaira 
Author-Name: M. Takizawa 
Author-X-Name-First: M. 
Author-X-Name-Last: Takizawa 
Author-Name: K. Tsuru 
Author-X-Name-First: K. 
Author-X-Name-Last: Tsuru 
Title: Employment protection and productivity: evidence from firm-level panel data in Japan 
Abstract:
  Recent developments in the literature on Employment Protection
 Legislation (EPL) have revealed that changing the stringency of employment
 protection can lead to extensive consequences outside the labour market,
 by affecting firms&#x2019; production decisions or workers&#x2019;
 commitment levels. This article provides the first empirical evaluation of
 the comprehensive effect of restrictions on firing employees in Japan, by
 exploiting the variations in court decisions. We find that judgements
 lenient to workers significantly reduce firms&#x2019; total-factor
 productivity growth rate. The effect on capital is mixed and inconclusive,
 although we obtain modest evidence that an increase in firing costs
 induces a negative scale effect on capital inputs. 
Journal: Applied Economics 
Pages: 2091-2105 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2012.654913 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654913 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2091-2105




Template-Type: ReDIF-Article 1.0
Author-Name: Sonia Akter 
Author-X-Name-First: Sonia 
Author-X-Name-Last: Akter 
Author-Name: Jeff Bennett 
Author-X-Name-First: Jeff 
Author-X-Name-Last: Bennett 
Title: Preference uncertainty in stated preference studies: facts and artefacts 
Abstract:
  The ordinal scale and polychotomous choice methods are two widely used
 techniques for estimating preference uncertainty in stated preference
 studies. This article presents the results of two experiments that apply
 these estimation techniques. The first experiment was designed to compare
 and contrast the scores of the ordinal scale and polychotomous choice
 method. The second experiment was conducted to test a scale that combines
 verbal expressions with numerical and graphical interpretations: a
 composite scale. The results of the study can be summarized in three key
 findings. First, the polychotomous choice method generates a higher
 proportion of &#x2018;yes&#x2019; responses than the conventional
 dichotomous choice elicitation format. Second, the composite scale
 generates a significantly higher proportion of certain responses. Finally,
 the ordinal scale performs poorly on the ground of construct validity. 
Journal: Applied Economics 
Pages: 2107-2115 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2012.654914 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654914 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2107-2115




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro   Cavalcanti Ferreira 
Author-X-Name-First: Pedro   Cavalcanti 
Author-X-Name-Last: Ferreira 
Title: AIDS, longevity and long-run income 
Abstract:
  This article studies the long-run impact of HIV/AIDS on per capita income
 and education. We focus on the disincentive to human capital accumulation
 given by shorter life span. We work with a continuous time overlapping
 generations model with education and saving decisions, calibrated for a
 cross-section of countries. The simulations predict that the most affected
 countries in Sub-Saharan Africa will be in future, on average, 20% poorer
 than they would be without AIDS. Schooling will decline in some cases such
 as Botswana, South Africa and Zambia by more than 40%. The impact of
 population decline was found to be irrelevant. 
Journal: Applied Economics 
Pages: 2117-2125 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2012.654915 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654915 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2117-2125




Template-Type: ReDIF-Article 1.0
Author-Name: Shiyong Zhao 
Author-X-Name-First: Shiyong 
Author-X-Name-Last: Zhao 
Title: Privatization, FDI inflow and economic growth: evidence from China's provinces, 1978--2008 
Abstract:
  China's economic growth over 1978--2008 is a miracle. This article
 attempts to figure out and quantify the factors leading to this miracle.
 It is generally believed that economic reform and opening up is the key to
 China's economic success, but that is far from being exact and specific.
 This study hypothesizes that privatization and Foreign Direct Investment
 (FDI) inflow are the two key factors in this process. We focus on
 identifying the exact, specific and detailed mechanisms of privatization
 and FDI inflow in promoting economic growth, especially from the
 provincial level. Then using a panel data covering 31 provinces of Chinese
 mainland over 1978--2008, we find statistically significant evidence to
 support our hypotheses. We predict that further economic growth depends on
 further privatization and opening up, that is, depends on
 denationalization of the economy. 
Journal: Applied Economics 
Pages: 2127-2139 
Issue: 15 
Volume: 45 
Year: 2013 
Month: 5 
X-DOI: 10.1080/00036846.2012.654916 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:15:p:2127-2139




Template-Type: ReDIF-Article 1.0
Author-Name: Mauricio Calani 
Author-X-Name-First: Mauricio 
Author-X-Name-Last: Calani 
Author-Name: J.   Rodrigo Fuentes 
Author-X-Name-First: J.   Rodrigo 
Author-X-Name-Last: Fuentes 
Author-Name: Klaus Schmidt-Hebbel 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Schmidt-Hebbel 
Title: A systemic approach to modelling and estimating demand for money(ies) 
Abstract:
  This article uses a consumer theory-based systemic approach to model the
 demand for monetary liquid asset holdings in Chile. We implement the
 suggestions and caveats of aggregation theory for the estimation of a
 demand system for liquid assets (monies) in static, dynamic and
 time-varying parameters setups. Our results are robust and theoretically
 consistent with consumer theory restrictions, as a system derived from a
 utility maximizing framework and a quasi concave utility function. In our
 estimations, we find stability of interest rate elasticities, in contrast
 to previous related literature. We also document evidence that long
 (short) maturity rates are associated to less (more) liquid assets. 
Journal: Applied Economics 
Pages: 2141-2162 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2011.610745 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610745 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2141-2162




Template-Type: ReDIF-Article 1.0
Author-Name: Yaobin Liu 
Author-X-Name-First: Yaobin 
Author-X-Name-Last: Liu 
Title: Economic growth drag in the Central China: evidence from a panel analysis 
Abstract:
  This article employs recently developed panel methods to test for unit
 roots, cointegration and Granger causality to justify and estimate the
 drag induced by resource constraint and environmental pollution for the
 Central China. The results of the panel cointegration test show that there
 is a stable long run relationship amongst total output, capital, labour,
 land, water and SO<sub>2</sub> when total output is the dependent
 variable. The results of the causality test with Error Correction Model
 (ECM) analysis suggest that the available water resource and environmental
 pollutant have no impacts on total output temporarily, but in the
 long&#x2010;run there is a Granger causality running from these variables
 to total output, indicating the economic growth drag induced by the
 natural resource and environmental pollution can be further estimated.
 Given the stable cointegration and significant Granger causality being,
 the study shows that the drag on the total output reduces annual economic
 growth rate by about 1.1 percentage points for the Central China as a
 whole and there is a significant difference on the aggregated and
 disaggregated drags for the six provinces, which indicates that natural
 resource and environmental constraints so far incorporated into production
 probably have a modest effect over the past 31 years for the Central
 China. 
Journal: Applied Economics 
Pages: 2163-2174 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.654917 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654917 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2163-2174




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas   M. Fullerton 
Author-X-Name-First: Thomas   M. 
Author-X-Name-Last: Fullerton 
Author-Name: Andr頠 Varella Mollick 
Author-X-Name-First: Andr頠 Varella 
Author-X-Name-Last: Mollick 
Title: Border region panel evidence on PPP deviations 
Abstract:
  This article examines prices for 32 identical menu items sold by
 restaurant franchises operating on both sides of the border between El
 Paso in the US and Ciudad Ju&#xE1;rez in Mexico from July 1997 to June
 2008. The relationship between Real Exchange Rate (RER) volatility and the
 degree of price convergence is examined within a panel data context. The
 city-pair and goods selected provide a unique experiment in which
 distance, tradability and industry considerations are set aside and the
 extent of RER volatility is the only factor to influence price
 convergence. We find nonmonotonic relationships between mean reversion and
 RER volatility: very fast adjustments for <italic>both</italic> low and
 high volatility panels of goods (between 1 and 2 months) and slower
 half-lives (between 3 and 4 months) at moderate levels of uncertainty.
 These figures are, however, substantially smaller than the 6 or 7 months
 reported in previous research for general US--Mexico goods, suggesting the
 very strong price convergence observed along the US--Mexican border. 
Journal: Applied Economics 
Pages: 2175-2182 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.654919 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654919 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2175-2182




Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim 
Author-X-Name-First: Sangho 
Author-X-Name-Last: Kim 
Author-Name: Hyunjoon Lim 
Author-X-Name-First: Hyunjoon 
Author-X-Name-Last: Lim 
Author-Name: Donghyun Park 
Author-X-Name-First: Donghyun 
Author-X-Name-Last: Park 
Title: Does productivity growth lower inflation in Korea? 
Abstract:
  We investigate Granger causality between productivity growth and
 inflation in Korea using quarterly data for the period 1985Q1--2002Q4. Our
 results indicate unidirectional Granger causality from productivity growth
 to inflation. In light of such causality, we estimate the effect of
 productivity and other variables on productivity. According to our
 regression results, a 1% increase in labour and Total Factor Productivity
 (TFP) reduces Consumer Price Index (CPI) inflation by 0.07--0.08% and
 0.37--0.44%, respectively. Our results also suggest that the
 productivity-inflation nexus became stronger in Korea since the Asian
 financial crisis, and that this was largely due to structural reform and
 technological progress. 
Journal: Applied Economics 
Pages: 2183-2190 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.657352 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.657352 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2183-2190




Template-Type: ReDIF-Article 1.0
Author-Name: N. Au 
Author-X-Name-First: N. 
Author-X-Name-Last: Au 
Author-Name: K. Hauck 
Author-X-Name-First: K. 
Author-X-Name-Last: Hauck 
Author-Name: B. Hollingsworth 
Author-X-Name-First: B. 
Author-X-Name-Last: Hollingsworth 
Title: The relationship between smoking, quitting smoking and obesity in Australia: a seemingly unrelated probit approach 
Abstract:
  Smoking and obesity are two leading causes of preventable death. Further
 understanding of the relationship between these two risk factors can
 assist in reducing avoidable morbidity and mortality. This study
 investigates the empirical association between obesity and the propensity
 to smoke and to quit smoking, using a Seemingly Unrelated (SUR) probit
 approach that takes into consideration the potential for reverse causality
 and unobserved heterogeneity. Using Australian health survey data, this
 article demonstrates the usefulness of the SUR probit approach in
 generating information on the relationship between unobserved factors
 influencing both smoking behaviour and obesity, and in providing estimates
 of the conditional probabilities of each risk factor. Results suggest the
 two risk factors are not independent. The presence, size and direction of
 correlation between the unobserved factors are found to vary by smoking
 behaviour and by gender. Estimates of conditional probabilities
 demonstrate smokers have a lower probability of obesity, particularly
 among females, and ex-smokers have a higher probability of obesity,
 particularly among males. These findings suggest that health policies
 targeted at one risk factor may have unintended implications for the
 other. 
Journal: Applied Economics 
Pages: 2191-2199 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.657353 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.657353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2191-2199




Template-Type: ReDIF-Article 1.0
Author-Name: Rita Almeida 
Author-X-Name-First: Rita 
Author-X-Name-Last: Almeida 
Author-Name: Ana   M. Fernandes 
Author-X-Name-First: Ana   M. 
Author-X-Name-Last: Fernandes 
Title: Explaining local manufacturing growth in Chile: the advantages of sectoral diversity 
Abstract:
  This article investigates whether the agglomeration of economic activity
 in regional clusters affects long-run manufacturing Total Factor
 Productivity (TFP) growth in an emerging market context. We explore a
 large firm-level panel dataset for Chile during a period characterized by
 high growth rates and rising regional income inequality (1992--2004). Our
 findings are clear-cut. Locations with greater concentration of a
 particular sector have <italic>not</italic> experienced faster TFP growth
 during this period. Rather, local sector diversity was associated with
 higher long-run TFP growth. However, there is no evidence that the
 diversity effect was driven by the local interaction with a set of
 suppliers and/or clients. We interpret this as evidence that agglomeration
 economies are driven by other factors such as the sharing of access to
 specialized inputs not provided solely by a single sector, e.g. skills or
 financing. 
Journal: Applied Economics 
Pages: 2201-2213 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.659344 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659344 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2201-2213




Template-Type: ReDIF-Article 1.0
Author-Name: Semra &#xD6;zdemir 
Author-X-Name-First: Semra 
Author-X-Name-Last: &#xD6;zdemir 
Author-Name: F.   Reed Johnson 
Author-X-Name-First: F.   Reed 
Author-X-Name-Last: Johnson 
Title: Estimating willingness to pay: do health and environmental researchers have different methodological standards? 
Abstract:
  Health and environmental economists have been employing Stated-Preference
 (SP) methods such as conjoint analysis or contingent valuation to estimate
 the monetary value of public health interventions and environmental goods
 and services. However, the quality of data and the validity of results are
 sensitive to a number of decisions researchers make. The aim of this study
 is to compare the degree of the current consensus among active researchers
 in the rapidly evolving area of SP methods in health and environmental
 valuation. We surveyed researchers who have published manuscripts on SP
 methods in the last 10 years. Researchers were presented with hypothetical
 SP studies with different attributes. They were first asked which study
 they would recommend to use to inform policy decisions, and then asked
 which study has better-quality. Our results show that good-practice SP
 methods vary among study features and among researchers with different
 amounts and kinds of research experience. Although health researchers had
 specific preferences on which study features were better, their quality
 judgements were not very consistent with their judgements about the
 acceptability of studies for policy analysis. On the other hand,
 environmental researchers had similar preferences over the study
 attributes for the two types of questions. 
Journal: Applied Economics 
Pages: 2215-2229 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.659345 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659345 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2215-2229




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Marc Burniaux 
Author-X-Name-First: Jean-Marc 
Author-X-Name-Last: Burniaux 
Author-Name: Jean Chateau 
Author-X-Name-First: Jean 
Author-X-Name-Last: Chateau 
Author-Name: Romain Duval 
Author-X-Name-First: Romain 
Author-X-Name-Last: Duval 
Title: Is there a case for carbon-based border tax adjustment? An applied general equilibrium analysis 
Abstract:
  Concern that unilateral Greenhouse Gas (GHG) emission reductions could
 foster carbon leakage and undermine the international competitiveness of
 domestic industry has led to growing calls for carbon-based Border-Tax
 Adjustments (BTAs). This article uses a global general equilibrium model
 to assess the economic effects of BTAs and comes to three main
 conclusions. First, BTAs can reduce carbon leakage if the coalition of
 countries taking action to reduce GHG emissions is small, because in this
 case leakage (while typically small) mainly occurs through international
 trade competitiveness losses rather than through declines in world fossil
 fuel prices. Second, even though the economic effects of BTAs vary
 somewhat depending on how they are implemented, their welfare impact is
 typically small, and slightly negative at the world level. Third, and
 perhaps more strikingly, BTAs do not necessarily curb the output losses
 incurred by the domestic Energy Intensive-Industries (EIIs) they are
 intended to protect in the first place. This is in part because EIIs in
 industrialized countries make important use of carbon-intensive
 intermediate inputs produced by EIIs in other geographical areas. Another,
 deeper explanation is that EIIs are ultimately more adversely affected by
 the existence of a carbon price itself than by any international
 competitiveness losses. These findings are shown to be robust to key model
 parameters, country coverage, targets and design features of BTAs. 
Journal: Applied Economics 
Pages: 2231-2240 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.659346 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2231-2240




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Ebeke 
Author-X-Name-First: Christian 
Author-X-Name-Last: Ebeke 
Author-Name: Jean-Louis Combes 
Author-X-Name-First: Jean-Louis 
Author-X-Name-Last: Combes 
Title: Do remittances dampen the effect of natural disasters on output growth volatility in developing countries? 
Abstract:
  This article examines whether or not remittance inflows help mitigate the
 effects of natural disasters on the volatility of the real output per
 capita growth rate. Using a large sample of developing countries and
 mobilizing a dynamic panel data framework, it uncovers a diminishing
 macroeconomic destabilizing consequence of natural disasters as remittance
 inflows rise. It appears that the effect of natural disasters disappears
 for a remittance ratio above 8% of the Gross Domestic Product (GDP).
 However, remittances aggravate the destabilizing effects of natural
 disasters when they exceed 17% of the GDP. Finally, the article shows that
 current and lagged remittance inflows significantly reduce the number of
 people killed by natural disasters and the number of people affected,
 respectively. 
Journal: Applied Economics 
Pages: 2241-2254 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.659347 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659347 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2241-2254




Template-Type: ReDIF-Article 1.0
Author-Name: Anton Paulrud 
Author-X-Name-First: Anton 
Author-X-Name-Last: Paulrud 
Author-Name: Thomas Laitila 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Laitila 
Title: A cost-benefit analysis of restoring the Em River in Sweden: valuation of angling site characteristics and visitation frequency 
Abstract:
  This article uses Cost-Benefit Analysis (CBA) to evaluate restoration
 scenarios aimed at improving angling on the Em River in Sweden. We find
 that none of the proposed projects are socially profitable when
 considering only values associated with angling. We rely on a Choice
 Experiment (CE) to derive utilities and estimate the monetary value of
 angling site characteristics and then also use the utilities derived in a
 visitation frequency using a two-stage budgeting approach. The visitation
 frequency is then used to extract values for fishing license sales and
 business-related income. The case study illustrates how CBA can provide
 useful insights into the potential economic returns of environmental
 restoration projects. Our case study also indicates that the results in
 terms of Willingness-To-Pay (WTP) and visitation frequency are general
 findings -- i.e. they appear similar across angling sites -- which is
 particularly useful from a policy point of view because it supports the
 use of benefit transfer for more cost-effective river management. 
Journal: Applied Economics 
Pages: 2255-2266 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.659348 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659348 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2255-2266




Template-Type: ReDIF-Article 1.0
Author-Name: Tim   Oliver Berg 
Author-X-Name-First: Tim   Oliver 
Author-X-Name-Last: Berg 
Title: Cross-country evidence on the relation between stock prices and the current account 
Abstract:
  This article explores the relation between stock prices and the current
 account for 17 Organization for Economic Co-operation and Development
 (OECD) countries in 1980--2007. A panel Vector Autoregressive (VAR) model
 is used to compare the effects of stock price shocks to those originating
 from monetary policy and exchange rates. While monetary policy shocks have
 little effects, shocks to stock prices and exchange rates have sizeable
 effects. A 10% contraction in stock prices improves the current account by
 0.3% after 2 years. Hence a channel -- in addition to the traditional
 exchange rate channel -- is found through which external balance for an
 OECD country with a current account imbalance can be restored. 
Journal: Applied Economics 
Pages: 2267-2277 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.659349 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659349 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2267-2277




Template-Type: ReDIF-Article 1.0
Author-Name: Hwa-Taek Lee 
Author-X-Name-First: Hwa-Taek 
Author-X-Name-Last: Lee 
Author-Name: Gawon Yoon 
Author-X-Name-First: Gawon 
Author-X-Name-Last: Yoon 
Title: Does purchasing power parity hold sometimes? Regime switching in real exchange rates 
Abstract:
  Standard unit root tests are not very powerful in drawing conclusions
 regarding the validity of Purchasing Power Parity (PPP). Rather than
 asking whether PPP holds throughout the whole sample period, we examine,
 in this study, if PPP holds sometimes by employing Hamilton-type (1989)
 Markov regime switching models. When at least one of multiple regimes is
 stationary, PPP holds locally within the regime. There are indeed various
 reasons that we should expect that the persistence of real exchange rates
 changes over time. Employing five real exchange rates spanning more than
 100 years, we find herein strong evidence that the strength of PPP varies
 during the sample periods and that there exist stationary regimes in which
 PPP holds. Throughout the article, we also make comparisons to previous
 Markov regime switching estimation results by Kanas (2006) on the same
 data series. The new Markov switching model selection criterion of Smith
 <italic>et&#xA0;al</italic>. (2006), which is devised especially for
 discriminating Markov regime switching models, unambiguously indicates a
 preference for the Hamilton-type Markov regime switching model employed in
 this study. We also find that the evidence for PPP is not much different
 across different nominal exchange rate arrangements. 
Journal: Applied Economics 
Pages: 2279-2294 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.661399 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.661399 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2279-2294




Template-Type: ReDIF-Article 1.0
Author-Name: O. Damette 
Author-X-Name-First: O. 
Author-X-Name-Last: Damette 
Author-Name: V. Fromentin 
Author-X-Name-First: V. 
Author-X-Name-Last: Fromentin 
Title: Migration and labour markets in OECD countries: a panel cointegration approach 
Abstract:
  This article examines the interaction between immigration and the host
 labour market of 14 Organization for Economic Co-operation and Development
 (OECD) countries using nonstationary panel data methodology. We estimate a
 trivariate Vector Error Correction Model (VECM) and derive causality tests
 to simultaneously assess the long- and short-term macroeconomic impact of
 newcomers on wages and unemployment levels in the host country. The
 results suggest that an increase of migrants is likely to increase wages
 in the destination countries in the short run but to increase them in the
 long run. There is no evidence of adverse effects on unemployment due to
 immigration in short and long-term except for Anglo-Saxon countries in the
 short term. Our findings also show that immigration is conditioned by
 levels of unemployment and wages especially in Anglo-Saxon countries. 
Journal: Applied Economics 
Pages: 2295-2304 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.661400 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.661400 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2295-2304




Template-Type: ReDIF-Article 1.0
Author-Name: Ananda Jayawickrama 
Author-X-Name-First: Ananda 
Author-X-Name-Last: Jayawickrama 
Author-Name: Tilak Abeysinghe 
Author-X-Name-First: Tilak 
Author-X-Name-Last: Abeysinghe 
Title: The experience of some OECD economies on tax smoothing 
Abstract:
  Observed random walk behaviour of a tax rate does not necessarily support
 the tax smoothing hypothesis though the latter implies the former. This
 article presents a direct test of tax smoothing by showing that if the tax
 smoothing hypothesis holds then the future tax rate should cointegrate
 with the current permanent government expenditure rate even though the tax
 rate is a random walk. This test is a direct and robust test of a number
 of &#x2018;random walk models&#x2019; available in the literature. This
 procedure also enables us to differentiate among &#x2018;strong tax
 smoothing&#x2019;, &#x2018;weak tax smoothing&#x2019; and &#x2018;no-tax
 smoothing&#x2019;, all of which are consistent with the random walk
 behaviour of a tax rate. Application of this test to Australia, Canada,
 Italy, Japan, the Netherlands, New Zealand, the UK and the US show
 evidence in support of weak forms of tax smoothing. 
Journal: Applied Economics 
Pages: 2305-2313 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.663472 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663472 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2305-2313




Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina   G. De Silva 
Author-X-Name-First: Dakshina   G. 
Author-X-Name-Last: De Silva 
Author-Name: Nidhi Thakur 
Author-X-Name-First: Nidhi 
Author-X-Name-Last: Thakur 
Author-Name: Mengzhi Xie 
Author-X-Name-First: Mengzhi 
Author-X-Name-Last: Xie 
Title: A hedonic price analysis of hearing aid technology 
Abstract:
  In this article, we study how technological components affect the price
 of hearing aids. The main goals are to determine which functional and
 technological features have the greatest influence on manufacturer-based
 prices in the hearing aid industry, and to analyse the price-cost margins
 at the dispenser level using a unique data set that is compiled from a
 hearing clinic in West Texas. The result shows that style and signal
 processing scheme are the two most important determinants of hearing aid
 price. Other characteristics such as directional microphone, noise
 cancellation, and a certain shell type are also positively related to
 price. Further, on average, this particular local dispenser has a markup
 of about 35% per hearing instrument. 
Journal: Applied Economics 
Pages: 2315-2323 
Issue: 16 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.663473 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663473 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:16:p:2315-2323




Template-Type: ReDIF-Article 1.0
Author-Name: Laura de Dominicis 
Author-X-Name-First: Laura 
Author-X-Name-Last: de Dominicis 
Author-Name: Raymond   J.G.M. Florax 
Author-X-Name-First: Raymond   J.G.M. 
Author-X-Name-Last: Florax 
Author-Name: Henri   L.F. de Groot 
Author-X-Name-First: Henri   L.F. 
Author-X-Name-Last: de Groot 
Title: Regional clusters of innovative activity in Europe: are social capital and geographical proximity key determinants? 
Abstract:
  Finding proper policy instruments to promote productivity growth features
 prominently in the Europe 2020 strategy and is central in many national as
 well as European policy debates. In view of the increased mobility of
 high-skilled workers in Europe, ongoing globalization and increased
 interregional and international co-operation, location patterns of
 innovative activity may be subject to drastic changes. A proper
 understanding of location patterns of innovative outputs can enhance the
 effectiveness and efficiency of national and European placed-based
 innovation policies. Building on the literature on the knowledge
 production function, the aim of this article is to explain the observed
 differences in the production of innovative outputs across European
 regions. Our main research question is whether geographical proximity and
 social capital are important vehicles of knowledge transmission in Europe.
 Several other variables are used to control for structural differences
 across European regions. We find support for the hypothesis that both
 social capital and geographical proximity are important factors in
 explaining the observed differences in the production of innovative output
 across European regions. 
Journal: Applied Economics 
Pages: 2325-2335 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.663474 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663474 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2325-2335




Template-Type: ReDIF-Article 1.0
Author-Name: Shinji Yane 
Author-X-Name-First: Shinji 
Author-X-Name-Last: Yane 
Author-Name: Sanford Berg 
Author-X-Name-First: Sanford 
Author-X-Name-Last: Berg 
Title: Sensitivity analysis of efficiency rankings to distributional assumptions: applications to Japanese water utilities 
Abstract:
  This article examines the robustness of efficiency score rankings across
 four distributional assumptions for trans-log stochastic
 production-frontier models, using data from 1221 Japanese water utilities
 (for 2004 and 2005). One-sided error terms considered include the
 half-normal, truncated normal, exponential and gamma distributions.
 Results are compared for homoscedastic and doubly heteroscedastic models,
 where we also introduce a doubly heteroscedastic variable mean model, and
 examine the sensitivity of the nested models to a stronger
 heteroscedasticity correction for the one-sided error component. The
 results support three conclusions regarding the sensitivity of efficiency
 rankings to distributional assumptions. When four standard distributional
 assumptions are applied to a homoscedastic stochastic frontier model, the
 efficiency rankings are quite consistent. When those assumptions are
 applied to a doubly heteroscedastic stochastic frontier model, the
 efficiency rankings are consistent when proper and sufficient arguments
 for the variance functions are included in the model. When a more general
 model, like a variable mean model is estimated, efficiency rankings are
 quite sensitive to heteroscedasticity correction schemes. 
Journal: Applied Economics 
Pages: 2337-2348 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.663475 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663475 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2337-2348




Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Salas-Fum&#xE1;s 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Salas-Fum&#xE1;s 
Author-Name: J.   Javier Sanchez-Asin 
Author-X-Name-First: J.   Javier 
Author-X-Name-Last: Sanchez-Asin 
Title: The management function of entrepreneurs and countries&#x2019; productivity growth 
Abstract:
  This article examines the determinants of the equilibrium number of
 entrepreneurs and the level of productivity in economies where individuals
 make occupational choices between being self-employed or working as an
 employee. The results of the theoretical model explain some observed
 empirical regularities, such as the negative association between
 productivity and self-employment rates in cross-country data. The article
 also derives and empirically tests an unexplored relationship between
 entrepreneurship and economic growth, in the form of a positive
 association between productivity growth in <italic>t</italic> and the
 proportion of the self-employed in
 <italic>t</italic>&#x2009;&#x2212;&#x2009;1, providing a new perspective
 on cross-country productivity convergence over time. 
Journal: Applied Economics 
Pages: 2349-2360 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.663476 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663476 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2349-2360




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Malgarini 
Author-X-Name-First: Marco 
Author-X-Name-Last: Malgarini 
Author-Name: Massimo Mancini 
Author-X-Name-First: Massimo 
Author-X-Name-Last: Mancini 
Author-Name: Lia Pacelli 
Author-X-Name-First: Lia 
Author-X-Name-Last: Pacelli 
Title: Temporary hires and innovative investments 
Abstract:
  The flexicurity approach claims a positive effect of flexible labour on
 firm performance, also through an increased ability to innovate. Critics
 consider it a deregulation of the labour market, decreasing investment in
 human capital and innovation. We contribute to this broad debate providing
 an estimate of the relationships linking innovative investment,
 substitution investment, permanent hires and temporary hires. In
 particular, we aim at affirming or denying that innovative investments are
 accompanied by a specific kind of workforce, being it stable or flexible.
 In doing so, we contribute to bridge the gap among two quite separate
 strands of literature, as existing literature usually analyses capital and
 labour separately. Estimating a nonlinear recursive equation system we
 highlight a significant increase in the likelihood of hiring on a
 permanent base when the firm innovates; this holds till 2008. Afterward,
 during the crisis, innovating firms are more likely to hire using
 temporary contracts instead, a possible signal of a cost saving strategy
 adopted in a loose labour market by firms still able to innovate.
 Furthermore, both permanent and temporary hires never depend on increases
 in labour costs; however, substitution investment increases when labour
 cost increases, maybe in an attempt to increase labour productivity
 through a more efficient capital equipment. 
Journal: Applied Economics 
Pages: 2361-2370 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.663477 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663477 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2361-2370




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Pierdzioch 
Author-X-Name-First: Christian 
Author-X-Name-Last: Pierdzioch 
Author-Name: Jan-Christoph R&#xFC;lke 
Author-X-Name-First: Jan-Christoph 
Author-X-Name-Last: R&#xFC;lke 
Author-Name: Georg Stadtmann 
Author-X-Name-First: Georg 
Author-X-Name-Last: Stadtmann 
Title: Oil price forecasting under asymmetric loss 
Abstract:
  Based on the approach developed by Elliott <italic>et&#xA0;al</italic>.
 (2005), we found that the loss function of a sample of oil price
 forecasters is asymmetric in the forecast error. Our findings indicate
 that the loss oil price forecasters incurred when their forecasts exceeded
 the price of oil tended to be larger than the loss they incurred when
 their forecast fell short of the price of oil. Accounting for the
 asymmetry of the loss function does not necessarily make forecasts look
 rational. 
Journal: Applied Economics 
Pages: 2371-2379 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.663478 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663478 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2371-2379




Template-Type: ReDIF-Article 1.0
Author-Name: E. H. Erge&#xE7; 
Author-X-Name-First: E. H. 
Author-X-Name-Last: Erge&#xE7; 
Author-Name: B. G. Arslan 
Author-X-Name-First: B. G. 
Author-X-Name-Last: Arslan 
Title: Impact of interest rates on Islamic and conventional banks: the case of Turkey 
Abstract:
  Identifying the impact of the interest rates upon Islamic banks is a key
 to understand the contribution of such institutions to the financial
 stability, designing monetary policies and devising a proper risk
 management applicable to these institutions. This article analyses and
 investigates the impact of interest rate shock upon the deposits and loans
 held by the conventional and Islamic banks with particular reference to
 the period between December 2005 and July 2009 based on Vector Error
 Correction (VEC) methodology. It is theoretically expected that the
 Islamic banks, relying on interest-free banking, shall not be affected by
 the interest rates; however, in concurrence with the previous studies, the
 article finds that the Islamic banks in Turkey are visibly influenced by
 interest rates. 
Journal: Applied Economics 
Pages: 2381-2388 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.665598 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665598 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2381-2388




Template-Type: ReDIF-Article 1.0
Author-Name:  Parjiono 
Author-X-Name-First:  
Author-X-Name-Last: Parjiono 
Author-Name: A.B.M.   Rabiul Alam Beg 
Author-X-Name-First: A.B.M.   Rabiul Alam 
Author-X-Name-Last: Beg 
Author-Name: Richard Monypenny 
Author-X-Name-First: Richard 
Author-X-Name-Last: Monypenny 
Title: The driving forces of the level and the growth rate of real per capita income in Indonesia 
Abstract:
  We investigate the driving forces behind the level and the growth rate in
 real per capita Gross Domestic Product (GDP) in Indonesia. The ultimate
 reasons and the proximate causes underlying Indonesia's economic growth
 since the mid-1960s are still unclear. In the literature there have been
 at least three ways of investigating the driving forces of economic growth
 in Indonesia, namely: growth accounting system, regression and causality.
 The difference and improvement in this article is that we employed a
 two-step bounds testing approach to cointegration, which has not been done
 before; it uses the endogenous growth model to consider 12 policy
 variables and two external factors that potentially affect per capita
 income, this number is more than that has been done before. The empirical
 results that we obtained using this two-step bounds testing approach help
 us draw policy implications that if or when implemented would be expected
 to increase the growth of real per capita income, as well as the welfare
 of the people of Indonesia. Economic growth in Indonesia is largely driven
 by government policy, so the ability to increase Indonesia's economic
 growth rate, in the long run, will largely depend on the implementation of
 appropriate government policies. 
Journal: Applied Economics 
Pages: 2389-2400 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.665599 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665599 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2389-2400




Template-Type: ReDIF-Article 1.0
Author-Name: Kristof De Witte 
Author-X-Name-First: Kristof 
Author-X-Name-Last: De Witte 
Author-Name: Mika Kortelainen 
Author-X-Name-First: Mika 
Author-X-Name-Last: Kortelainen 
Title: What explains the performance of students in a heterogeneous environment? Conditional efficiency estimation with continuous and discrete environmental variables 
Abstract:
  Efficiency estimations which do not account for the operational
 environment where production units are operating in may have only a
 limited value. This article presents a fully nonparametric framework to
 estimate relative performance of production units when accounting for
 continuous and discrete background variables. Using insights from recent
 developments in nonparametric econometrics, we show how conditional
 efficiency scores can be estimated using a tailored mixed kernel function
 with a data-driven bandwidth selection. The methodology is applied to the
 sample of Dutch pupils from the Organization for Economic Co-operation and
 Development's Programme for International Student Assessment (OECD PISA)
 data set. We estimate students' performance and the influence of its
 background characteristics. The results of our application show that
 several family- and student-specific characteristics have a statistically
 significant effect on the educational efficiency, while school-level
 variables do not have impact on performance. 
Journal: Applied Economics 
Pages: 2401-2412 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.665602 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665602 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2401-2412




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony   J. Makin 
Author-X-Name-First: Anthony   J. 
Author-X-Name-Last: Makin 
Author-Name: Sam Strong 
Author-X-Name-First: Sam 
Author-X-Name-Last: Strong 
Title: New measures of factor productivity in Australia: a Sato approach 
Abstract:
  This article derives new results of the Elasticity of Substitution (ES)
 between capital and labour and factor productivity for Australia, an
 economy which experienced major economic reform that substantially
 increased the flexibility of its labour, product and capital markets
 throughout the 1980s and 1990s. It employs a Sato production function
 specification which has unique properties that enable the estimation of
 capital--labour substitution elasticity and changing marginal
 productivities through time. These estimates reveal that the substitution
 elasticity and labour productivity in Australia rose significantly from
 the mid-1960s and remained elevated during the economic reform period. A
 novel contribution of this article is the depiction of Australia's
 production isoquants to convey how combining labour and capital to produce
 real Gross Domestic Product (GDP) has changed over recent decades. 
Journal: Applied Economics 
Pages: 2413-2422 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.665603 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665603 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2413-2422




Template-Type: ReDIF-Article 1.0
Author-Name: Horst Rottmann 
Author-X-Name-First: Horst 
Author-X-Name-Last: Rottmann 
Author-Name: Timo Wollmersh&#xE4;user 
Author-X-Name-First: Timo 
Author-X-Name-Last: Wollmersh&#xE4;user 
Title: A micro data approach to the identification of credit crunches 
Abstract:
  This article presents a micro data approach to the identification of
 credit crunches. Using a survey among German firms which regularly queries
 the firms' assessment of the current willingness of banks to extend
 credit, we estimate the probability of a restrictive loan supply policy by
 time taking into account the creditworthiness of borrowers.
 Creditworthiness is approximated by firm-specific factors, e.g. the firms'
 assessment of their current business situation and their business
 expectations. After controlling for the return on the banks' risk-free
 investment alternative, which is also likely to affect the supply of
 loans, we derive a credit crunch indicator, which measures that part of
 the shift in the loan supply that is neither explained by firm-specific
 factors nor by the opportunity costs of providing risky loans. 
Journal: Applied Economics 
Pages: 2423-2441 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.665604 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665604 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2423-2441




Template-Type: ReDIF-Article 1.0
Author-Name: Micha&#x142; Gradzewicz 
Author-X-Name-First: Micha&#x142; 
Author-X-Name-Last: Gradzewicz 
Author-Name: Krzysztof Makarski 
Author-X-Name-First: Krzysztof 
Author-X-Name-Last: Makarski 
Title: The business cycle implications of the euro adoption in Poland 
Abstract:
  This article analyses the macroeconomic impact of the loss of autonomous
 monetary policy after the euro adoption in Poland. Using a two-country
 Dynamic Stochastic General Equilibrium (DSGE) model with sticky prices and
 wages, we find that the euro adoption will have a noticeable impact on the
 magnitude of economic fluctuations. In particular, the volatility of
 output, interest rate, consumption and employment is expected to increase
 while the volatility of inflation should decrease. Also, in order to
 quantify the effect of the euro adoption, we compute the welfare effect of
 this monetary policy change. Our findings suggest that the welfare cost is
 not large. 
Journal: Applied Economics 
Pages: 2443-2455 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.667550 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667550 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2443-2455




Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Mussini 
Author-X-Name-First: Mauro 
Author-X-Name-Last: Mussini 
Title: A matrix approach to the Gini index decomposition by subgroup and by income source 
Abstract:
  The literature offers two main ways of decomposing the Gini index:
 decomposition by population subgroup and by income source. This article
 proposes merging the two decomposition dimensions by suggesting a matrix
 formula for the Gini index which permits the simultaneous decomposition by
 subgroup and by income source. Using this multi&#x2010;decomposition, one
 can investigate the role of the interaction between the subgroup and the
 source components in determining the overall inequality. We apply the
 methodology to sample data on Italian household incomes collected in 2008. 
Journal: Applied Economics 
Pages: 2457-2468 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.667553 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667553 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2457-2468




Template-Type: ReDIF-Article 1.0
Author-Name: Kazumasa Oguro 
Author-X-Name-First: Kazumasa 
Author-X-Name-Last: Oguro 
Author-Name: Takashi Oshio 
Author-X-Name-First: Takashi 
Author-X-Name-Last: Oshio 
Author-Name: Junichiro Takahata 
Author-X-Name-First: Junichiro 
Author-X-Name-Last: Takahata 
Title: Ability transmission, endogenous fertility and educational subsidy 
Abstract:
  In this study, we attempt to investigate how educational subsidy,
 childcare allowance and family allowance affect economic growth and income
 distribution on the basis of simulation models which incorporate
 intergenerational ability transmission and endogenous fertility. The
 simulation results show that financial support for higher education can
 both increase economic growth and reduce income inequality, especially if
 the abilities of parent and child are closely correlated. In contrast with
 educational subsidy, raising childcare allowance or family allowance has
 limited impacts on growth and income inequality. 
Journal: Applied Economics 
Pages: 2469-2479 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.667554 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667554 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2469-2479




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin   F. Forbes 
Author-X-Name-First: Kevin   F. 
Author-X-Name-Last: Forbes 
Author-Name: Ernest   M. Zampelli 
Author-X-Name-First: Ernest   M. 
Author-X-Name-Last: Zampelli 
Title: The impacts of religion, political ideology, and social capital on religious and secular giving: evidence from the 2006 Social Capital Community Survey 
Abstract:
  Using a double hurdle model and data from the 2006 Social Capital
 Community Survey (SCCS2006) we examine religious and secular giving,
 focusing on the impacts of religion, political ideology and social
 capital. Our main results indicate that greater participation in religious
 activities positively impacts religious and secular giving, the intensity
 of religious belief increases religious giving at the expense of secular
 giving, religious giving by very conservative individuals is higher than
 for other ideological groups, and measures of social capital are very
 important in raising the level and likelihood of philanthropic giving. 
Journal: Applied Economics 
Pages: 2481-2490 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.667555 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667555 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2481-2490




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Author-Name: Larry Li 
Author-X-Name-First: Larry 
Author-X-Name-Last: Li 
Title: An operational risk profile: the experience of British firms 
Abstract:
  This study provides an analysis of 163 operational loss events
 experienced by a variety of British firms over the period 1999--2008. 10
 different hypotheses are tested to examine the distribution of loss
 severity and frequency with respect to business line, event type and
 corporate entity type. We also test hypotheses on the relation between
 loss severity and the decline in the market value of the announcing firm
 and whether or not the decline in market value is greater if the loss
 results from internal fraud. The results indicate that loss severity does
 not depend on firm size, that the decline in market value bears no stable
 relation to the loss amount and that they decline in market value relative
 to the loss amount is positively related to firm size. 
Journal: Applied Economics 
Pages: 2491-2500 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.667556 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667556 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2491-2500




Template-Type: ReDIF-Article 1.0
Author-Name: Ari Aisen 
Author-X-Name-First: Ari 
Author-X-Name-Last: Aisen 
Author-Name: David Hauner 
Author-X-Name-First: David 
Author-X-Name-Last: Hauner 
Title: Budget deficits and interest rates: a fresh perspective 
Abstract:
  We extend the literature on budget deficits and interest rates in three
 ways: we examine both advanced and emerging economies and for the first
 time a large emerging market panel; explore interactions to explain some
 of the heterogeneity in the literature; and apply system Generalized
 Method of Moments (GMM). There is overall a highly significant positive
 effect of budget deficits on interest rates, but the effect depends on
 interaction terms and is only significant under one of the several
 conditions: deficits are high, mostly domestically financed, or interact
 with high domestic debt; financial openness is low; interest rates are
 liberalized; or financial depth is low. 
Journal: Applied Economics 
Pages: 2501-2510 
Issue: 17 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.667557 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667557 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:45:y:2013:i:17:p:2501-2510




Template-Type: ReDIF-Article 1.0
Author-Name: Dandan Liu 
Author-X-Name-First: Dandan 
Author-X-Name-Last: Liu 
Author-Name: Dennis W. Jansen 
Author-X-Name-First: Dennis W. 
Author-X-Name-Last: Jansen 
Title: The effects of monetary policy using structural factor analysis 
Abstract:
	      The traditional Vector Autoregression (VAR) method is widely
 used to trace out the effects of monetary policy innovations on the
 economy. However, this method suffers from the curse of dimensionality, so
 that in practice VARs are estimated on a limited number of variables,
 leading to a potential missing information problem. In this article we use
 the method of structural factor analysis to evaluate the effects of
 monetary policy on key macroeconomic variables in a data rich environment.
 This methodology allows us to extract information on monetary policy and
 its impact on the economy from a much larger data set than is possible
 with the traditional VAR method. We propose two structural factor models.
 One is the Structural Factor Augmented Vector Autoregressive (SFAVAR)
 model and the other is the Structural Factor Vector Autoregressive (SFVAR)
 model. Compared to the traditional VAR, both models incorporate
 information from hundreds of data series, series that can be and are
 monitored by the central bank in setting policy. Moreover, the factors
 used are structurally meaningful, a feature that adds to the understanding
 of the 'black box' of the monetary transmission mechanism. Both models
 generate qualitatively reasonable impulse response functions. For the
 SFVAR model, both the price puzzle and the liquidity puzzle are
 eliminated.	      
Journal: Applied Economics 
Pages: 2511-2526 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.669462 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2511-2526




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Tzioumis 
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Tzioumis 
Title: Are company founders underpaid? 
Abstract:
	      This article examines the relation between founder status and
 CEO compensation in publicly listed US firms. The results suggest that
 CEO/founders receive lower cash pay and total compensation compared to
 professional managers. In contrast, CEOs who are relatives of the founders
 receive similar cash pay and total compensation to that of professional
 managers. Different compensation levels also emerge in terms of stock
 option awards. The findings underline the importance of distinguishing
 among these three CEO types when examining the determinants of executive
 compensation.		
Journal: Applied Economics 
Pages: 2527-2536 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.669463 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669463 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2527-2536




Template-Type: ReDIF-Article 1.0
Author-Name: Ndahiriwe Kasa
Author-X-Name-First: Ndahiriwe 
Author-X-Name-Last: Kasa
Author-Name: Ruthira Naraidoo 
Author-X-Name-First: Ruthira 
Author-X-Name-Last: Naraidoo 
Title: The opportunistic approach to monetary policy and financial market conditions 
Abstract:
	      We test the concept of the opportunistic approach to monetary
 policy in South Africa post-2000 inflation targeting regime. The article
 contributes to the current debate on central banks having additional
 objectives over and above inflation and output by incorporating a measure
 of financial conditions in the modelling framework. Our findings support
 the two features of the opportunistic approach. First, we find that the
 models that include an intermediate target that reflects the recent
 history of inflation rather than simple inflation target improve the fit
 of the models. Second, the data supports the view that the South African
 Reserve Bank (SARB) behaves with some degree of nonresponsiveness when
 inflation is within the zone of discretion but react aggressively
 otherwise. Recursive estimates from our preferred model reveal that
 overall there has been a subdued reaction to inflation, output and
 financial conditions amidst the increased economic uncertainty of the
 2007--2009 financial crisis.	       
Journal: Applied Economics 
Pages: 2537-2545 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.669464 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669464 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2537-2545




Template-Type: ReDIF-Article 1.0
Author-Name: Laura Padilla Angulo 
Author-X-Name-First: Laura Padilla 
Author-X-Name-Last: Angulo 
Title: Labour inputs substitution during corporate restructuring: a translog model approach for US freight railroads 
Abstract:
	      After deregulation in 1980, competitive pressures forced the
 large US freight railroads to reduce costs and restructure, resulting in
 an economic renaissance of the US railroad companies after years of poor
 financial conditions. The most striking restructuring measure receiving
 much attention was dramatic labour downsizing: until 2004 employment was
 reduced by 60%. But other overlooked measures are the significant
 restructuring of workforce composition, and important changes in
 railroads' workplace organization practices and corporate culture. To
 better understand this successful occupational restructuring, I
 investigate labour inputs substitutional relationships by using a translog
 variable cost model. Labour is decomposed into six employee categories
 rather than traditional production--nonproduction breakdown to estimate
 inputs elasticities of substitution. The data investigated is a unique
 firm-level dataset on the US freight Class I Railroads, covering a 22-year
 period, which allows this fine-grained analysis. I also document railroad
 workplace organization practices relating to results and reflecting
 changes in railroads corporate culture. I find strong substitutability
 between managerial positions and transportation employees, pointing to
 achievement of better command and control of operations; a high degree of
 complementarity between the most skilled employee categories and the
 strongest substitute relationship between transportation and maintenance
 of <italic>Ways&Structures</italic> groups.	      
Journal: Applied Economics 
Pages: 2547-2562 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.669465 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669465 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2547-2562




Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Alam᭓abater 
Author-X-Name-First: Luisa 
Author-X-Name-Last: Alam᭓abater 
Author-Name: Laura MᲱuez-Ramos 
Author-X-Name-First: Laura 
Author-X-Name-Last: MᲱuez-Ramos 
Author-Name: Celestino SuᲥz-Burguet 
Author-X-Name-First: Celestino 
Author-X-Name-Last: SuᲥz-Burguet 
Title: Trade and transport connectivity: a spatial approach 
Abstract:
	      This article aims to analyse whether transport connectivity
 affects trade flows using a spatial approach. We consider first-order
 contiguity and incorporate logistics network structure dependence in a
 spatial autoregressive model. The results provide evidence regarding the
 role of the location of logistics platforms for satisfying existing demand
 for transport structure in Spain.	    
Journal: Applied Economics 
Pages: 2563-2566 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.669466 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669466 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2563-2566




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Buehn 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Buehn 
Author-Name: Christian Lessmann 
Author-X-Name-First: Christian 
Author-X-Name-Last: Lessmann 
Author-Name: Gunther Markwardt 
Author-X-Name-First: Gunther 
Author-X-Name-Last: Markwardt 
Title: Decentralization and the shadow economy: Oates meets Allingham--Sandmo 
Abstract:
	      This article studies the impact of decentralization on the
 shadow economy. We argue that decentralization may decrease the size of
 the shadow economy mainly through two transmission channels: (1)
 decentralization enhancing public sector efficiency (<italic>efficiency
 effect</italic>), and (2) decentralization reducing the distance between
 bureaucrats and economic agents, which increases the probability of
 detection of shadow economic activities (<italic>deterrence
 effect</italic>). Using various measures of fiscal, political and
 government employment decentralization in a cross-section of countries, we
 find the deterrence effect to be of more importance. The deterrence effect
 is stronger, the lower the degree of institutional quality. We find no
 robust evidence of the efficiency effect.	    
Journal: Applied Economics 
Pages: 2567-2578 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.671923 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.671923 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2567-2578




Template-Type: ReDIF-Article 1.0
Author-Name: Gilbert Cette 
Author-X-Name-First: Gilbert 
Author-X-Name-Last: Cette 
Author-Name: Marielle de Jong 
Author-X-Name-First: Marielle 
Author-X-Name-Last: de Jong 
Title: Breakeven inflation rates and their puzzling correlation relationships 
Abstract:
	      It is generally assumed that the two Fisher components of the
 interest rate -- the real interest and the inflation -- evolve
 independently over time, considering that they are driven by unrelated
 economical events. However, the market pricing of those components deduced
 from newly-available bond data does not provide conclusive evidence. While
 studying the price behaviour of inflation-linked (real) bonds beside
 nominal bonds in the major fixed-income markets, we observe that the Real
 Bond Yields (RBY) and the yield differentials, the Breakeven Inflation
 Rates (BEIR), have the propensity to be positively correlated between each
 other across the various countries, yet are pushed into a negative
 correlation relationship due to market-related price distortions. As long
 as those distortions are local, the net result is near-zero correlation
 within countries; when they become global, as in the heat of the current
 crisis, the correlations turn negative worldwide. In this article insight
 is gained by taking an innovative worldwide study approach and thanks to
 revealing crisis period events.	  
Journal: Applied Economics 
Pages: 2579-2585 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.671924 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.671924 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2579-2585




Template-Type: ReDIF-Article 1.0
Author-Name: Didier Fouarge 
Author-X-Name-First: Didier 
Author-X-Name-Last: Fouarge 
Author-Name: Trudie Schils 
Author-X-Name-First: Trudie 
Author-X-Name-Last: Schils 
Author-Name: Andries de Grip 
Author-X-Name-First: Andries 
Author-X-Name-Last: de Grip 
Title: Why do low-educated workers invest less in further training? 
Abstract:
	      Several studies document that low-educated workers
 participate less often in further training than high-educated workers.
 This article investigates two possible explanations: low-educated workers
 invest less in training because of (1) the lower economic returns to these
 investments or (2) their lower willingness to participate in training.
 Controlling for unobserved heterogeneity, we find that the economic
 returns to training for low-educated workers are positive and not
 significantly different from those for high-educated workers. However,
 low-educated workers are significantly less willing to participate in
 training. We show that this lesser willingness to train is driven by
 economic preferences, and personality traits.		
Journal: Applied Economics 
Pages: 2587-2601 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.671926 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.671926 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2587-2601




Template-Type: ReDIF-Article 1.0
Author-Name: Lilia Cavallari 
Author-X-Name-First: Lilia 
Author-X-Name-Last: Cavallari 
Author-Name: Stefano d'Addona 
Author-X-Name-First: Stefano 
Author-X-Name-Last: d'Addona 
Title: Nominal and real volatility as determinants of FDI 
Abstract:
	      This article examines the role of country-specific sources of
 output and interest rate or exchange rate volatility in driving Foreign
 Direct Investment (FDI) activities. Building on a dataset with bilateral
 FDI flows among 24 Organization for Economic Co-operation and Development
 (OECD) economies over the period 1985--2007, we find that nominal and real
 volatility strongly deter foreign investments. Output and exchange rate
 volatility matter in particular for the decision whether to invest in a
 foreign country in the first place. Interest rate volatility mainly
 influences the amount of foreign investments.		
Journal: Applied Economics 
Pages: 2603-2610 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.674206 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.674206 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2603-2610




Template-Type: ReDIF-Article 1.0
Author-Name: Hooi Hooi Lean 
Author-X-Name-First: Hooi Hooi 
Author-X-Name-Last: Lean 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Do Malaysian house prices follow a random walk? Evidence from univariate and panel LM unit root tests with one and two structural breaks 
Abstract:
	      In this article we apply univariate and panel Lagrange
 Multiplier (LM) unit root tests with one and twostructural breaks proposed
 by Lee and Strazicich (2003, 2004) and Im <italic>et&nbsp;al</italic>.
 (2005) to examine housing prices for five different housing price indices
 (all housing, detached housing, semi-detached housing, terrace housing and
 high-rise housing) in 14 states of Malaysia to test whether housing prices
 exhibit a random walk. Our main finding from the univariate LM unit root
 tests is that for the vast majority of states housing prices follow a
 stationary process about a segmented trend. The results of the panel LM
 unit root tests provide overwhelming evidence that house prices are
 segmented trend reverting.	     
Journal: Applied Economics 
Pages: 2611-2627 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.674207 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.674207 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2611-2627




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani--Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani--Oskooee 
Author-Name: Scott W. Hegerty 
Author-X-Name-First: Scott W. 
Author-X-Name-Last: Hegerty 
Author-Name: Jia Xu 
Author-X-Name-First: Jia 
Author-X-Name-Last: Xu 
Title: Exchange--rate volatility and US--Hong Kong industry trade: is there evidence of a 'third country' effect? 
Abstract:
	      In an effort to better understand the determinants of trade
 flows worldwide, researchers have recently incorporated external
 volatility (in addition to that of the partners' bilateral exchange rate)
 into their models. The so--called 'third country' effect is present if
 adding this term changes the bilateral volatility estimates that are found
 when external volatility is omitted. This study examines US exports to
 Hong Kong for 143 industries, and imports from Hong Kong for 110
 industries, and finds two key results. First, expected inflation due to
 Hong Kong's dollar peg leads to increased US exports in a large number of
 industries. Second, comparing our results with those of a previous study
 shows strong evidence of a 'third country' effect, especially for US
 imports. Nonparametric tests suggest that these effects differ by sector:
 for both exports and imports. Manufacturing industries that enjoy a large
 trade share are less likely to experience this effect once external
 volatility is incorporated into the analysis.		
Journal: Applied Economics 
Pages: 2629-2651 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.654918 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654918 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2629-2651




Template-Type: ReDIF-Article 1.0
Author-Name: &Aring;sa Marie Hansson 
Author-X-Name-First: &Aring;sa Marie 
Author-X-Name-Last: Hansson 
Author-Name: Karin Olofsdotter 
Author-X-Name-First: Karin 
Author-X-Name-Last: Olofsdotter 
Title: FDI, taxes and agglomeration economies in the EU15 
Abstract:
	      This article provides an empirical analysis of the impact of
 tax differentials and agglomeration economies on Foreign Direct Investment
 (FDI). The article departs from most previous work on FDI and tax
 competition in a number of ways. First, it incorporates several measures
 of agglomeration in order to investigate whether agglomeration economies
 mitigate the downward spiral in tax rates. As the strength of
 agglomeration economies may vary with the degree of integration, we use a
 panel of bilateral FDI flows for a highly integrated region including
 countries with similar economic structure -- the EU15 -- from 1986 to
 2004. Second, the empirical analysis explicitly deals with the problem of
 selection bias by using the Heckman sample selection approach. Also, by
 focusing on the EU15, we are able to provide additional information on the
 determinants of FDI between similar, higher-income countries. The
 empirical analysis provides some evidence of corporate marginal effective
 tax rates having an impact on FDI. This result, however, is sensitive to
 the inclusion of agglomeration economies. In particular, we find both
 Marshall types of technological externalities and overall concentration of
 economic activity to have an influence on FDI flows and, moreover,
 mitigating the negative impact of taxes.	   
Journal: Applied Economics 
Pages: 2653-2664 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.665596 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665596 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2653-2664




Template-Type: ReDIF-Article 1.0
Author-Name: Giorgia Giovannetti 
Author-X-Name-First: Giorgia 
Author-X-Name-Last: Giovannetti 
Author-Name: Giorgio Ricchiuti 
Author-X-Name-First: Giorgio 
Author-X-Name-Last: Ricchiuti 
Author-Name: Margherita Velucchi 
Author-X-Name-First: Margherita 
Author-X-Name-Last: Velucchi 
Title: Location, internationalization and performance of firms in Italy: a multilevel approach 
Abstract:
	      Competition is increasingly global. However, location still
 matters: often firms cluster in the same geographic areas in order to
 exploit locational externalities and improve their competitiveness. This
 article analyses how Italian firms' performance, proxied by their
 propensity to export, depends both on geographical and institutional
 context and on individual characteristics. Using a multilevel approach, we
 estimate and distinguish the effect of individual (firm level) and context
 (province level) variables on the performance of internationalized Italian
 firms. We show that both firms and province heterogeneity shape the
 results.	   
Journal: Applied Economics 
Pages: 2665-2673 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.665597 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665597 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2665-2673




Template-Type: ReDIF-Article 1.0
Author-Name: Alisher Akhmedjonov 
Author-X-Name-First: Alisher 
Author-X-Name-Last: Akhmedjonov 
Author-Name: Marco Chi Keung Lau 
Author-X-Name-First: Marco Chi Keung 
Author-X-Name-Last: Lau 
Author-Name: Berna Balc&#x131; &#x130;zgi 
Author-X-Name-First: Berna Balc&#x131; 
Author-X-Name-Last: &#x130;zgi 
Title: New evidence of regional income divergence in post-reform Russia 
Abstract:
	      This article investigates regional income convergence in
 Russia during 2000--2008. We test the hypothesis in which income
 divergence across regions of the country should give place to income
 convergence as the country moves toward free market economy with strong
 market institutions. The study contributes to the existing literature by
 using the exponential smooth autoregressive Augmented Dickey--Fuller (ADF)
 unit root test in a panel setup, a novel econometric technique, which
 encompasses cross sectional dependence. Results show strong evidence of
 on-going regional income divergence in post-reform period.	     
Journal: Applied Economics 
Pages: 2675-2682 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.665600 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665600 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2675-2682




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Huisman 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Huisman 
Author-Name: Mehtap Kili砍
Author-X-Name-First: Mehtap 
Author-X-Name-Last: Kili砍
Title: A history of European electricity day-ahead prices 
Abstract:
	      In this article, we examine the development of day-ahead
 prices in five European markets which became more connected over recent
 years. Where previous studies examined the convergence of price levels
 over time, we focus on patterns in estimates for the parameters in a
 switching regimes model. This makes it possible to distinguish between
 prices under normal market conditions and under non-normal market
 conditions, those market conditions that can cause extreme price spikes.
 We expect that increased connectivity yields additional supply in the
 short-term and therefore will reduce the impact of price spikes. Our
 results indicate that the impact of price spikes and volatility decreased
 over time, that prices behave more random, and that the parameter
 estimates between various connected markets seem to have converged between
 the Belgian, Dutch, French, German and Nordic day-ahead markets over the
 years 2003 through 2010. These results can be explained by increased
 connectivity and improved liquidity.	       
Journal: Applied Economics 
Pages: 2683-2693 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2012.665601 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665601 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2683-2693




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon 
Author-X-Name-First: Robert 
Author-X-Name-Last: Dixon 
Author-Name: G. C. Lim 
Author-X-Name-First: G. C. 
Author-X-Name-Last: Lim 
Title: A univariate model of aggregate labour productivity 
Journal: Applied Economics 
Pages: 2695-2695 
Issue: 18 
Volume: 45 
Year: 2013 
Month: 6 
X-DOI: 10.1080/00036846.2011.652881 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.652881 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2695-2695




Template-Type: ReDIF-Article 1.0
Author-Name: Emanuele Bajo 
Author-X-Name-First: Emanuele 
Author-X-Name-Last: Bajo 
Author-Name: Massimiliano Barbi 
Author-X-Name-First: Massimiliano 
Author-X-Name-Last: Barbi 
Author-Name: David Hillier 
Author-X-Name-First: David 
Author-X-Name-Last: Hillier 
Title: Interest rate risk estimation: a new duration-based approach 
Abstract:
  Duration is widely used by fixed income managers to proxy the interest
 rate risk of their assets and liabilities. However, it is well known that
 the convexity of the price-yield relationship introduces approximation
 errors that grow with changes in yield. In this article we suggest a new
 approach, &#x2018;discrete duration&#x2019;, which significantly improves
 upon the accuracy of traditional duration methods and achieves a level of
 accuracy close to the more complex &#x2018;duration-plus-convexity&#x2019;
 measure. In particular, discrete duration performs particularly well for
 long dated and low coupon rate bonds where the estimation error is
 impressively close to zero. 
Journal: Applied Economics 
Pages: 2697-2704 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.667552 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2697-2704




Template-Type: ReDIF-Article 1.0
Author-Name: Anton Bekkerman 
Author-X-Name-First: Anton 
Author-X-Name-Last: Bekkerman 
Author-Name: Barry   K. Goodwin 
Author-X-Name-First: Barry   K. 
Author-X-Name-Last: Goodwin 
Author-Name: Nicholas   E. Piggott 
Author-X-Name-First: Nicholas   E. 
Author-X-Name-Last: Piggott 
Title: A variable threshold band approach to measuring market linkages 
Abstract:
  Uncertain and changing economic conditions can have substantial effects
 on price relationships in spatially separated, linked markets. Although
 numerous studies have analysed price relationships to characterize market
 linkage structures, most assume that the relationships and associated
 linkages are time invariant. This study extends the literature by
 modelling and estimating time-dependent market linkages that are
 conditional on changes in exogenous factors. The methodology is used to
 investigate price relationships in North Carolina (NC) corn and soya bean
 markets. Empirical results indicate that generalized market-linkage models
 provide a better representation of price relationships over time,
 improving the understanding of price discovery dynamics and marketing
 strategies. 
Journal: Applied Economics 
Pages: 2705-2714 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.671925 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.671925 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2705-2714




Template-Type: ReDIF-Article 1.0
Author-Name: Sanna-Mari Hynninen 
Author-X-Name-First: Sanna-Mari 
Author-X-Name-Last: Hynninen 
Author-Name: Terhi Maczulskij 
Author-X-Name-First: Terhi 
Author-X-Name-Last: Maczulskij 
Title: Spot market wages, implicit contracts and technological change: skill-level evidence from Finland 
Abstract:
  This article investigates the relevance of the theories of implicit
 contracts and spot market model to the skill-level wages in Finland. We
 use linked worker-firm panel data over the period from 1991 to 2004, which
 included major institutional and technological changes. We find similar
 patterns in the wage flexibility of primary and highly educated workers:
 their wages increased with the decreasing spot market unemployment rate
 after the EU membership still exhibiting some weak backward linkages. The
 wages of the secondary-educated did not follow the decreasing spot market
 unemployment, but instead some signs of the full commitment risk sharing
 were found. 
Journal: Applied Economics 
Pages: 2715-2723 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.674205 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.674205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2715-2723




Template-Type: ReDIF-Article 1.0
Author-Name: Rita Soares 
Author-X-Name-First: Rita 
Author-X-Name-Last: Soares 
Title: Assessing monetary policy in the euro area: a factor-augmented VAR approach 
Abstract:
  In order to overcome the omitted information problem of small-scale
 Vector Autoregression (VAR) models, this study combines the VAR
 methodology with dynamic factor analysis and assesses the effects of
 monetary policy shocks in the euro area in the period during which there
 is a single monetary policy. Using the Factor-Augmented Vector
 Autoregressive (FAVAR) approach of Bernanke <italic>et&#xA0;al</italic>.
 (2005), we summarize the information contained in a large set of
 macroeconomic time series with a small number of estimated factors and use
 them as regressors in recursive VARs to evaluate the impact of the
 nonsystematic component of the European Central Bank's (ECB's) actions.
 Overall, our results suggest that the inclusion of factors in the VAR
 allows us to obtain a more coherent picture of the effects of monetary
 policy innovations, both by achieving responses easier to understand from
 the theoretical point of view and by increasing the precision of such
 responses. Moreover, this framework allows us to compute impulse-response
 functions for all the variables included in the panel, thereby providing a
 more complete depiction of the effects of policy disturbances. However,
 the extra information generated by the FAVAR also delivers some puzzling
 responses, in particular those relating to exchange rates. 
Journal: Applied Economics 
Pages: 2724-2744 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.676736 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.676736 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2724-2744




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Turner 
Author-X-Name-First: Paul 
Author-X-Name-Last: Turner 
Title: Does the monetary policy committee still care about inflation? Some evidence from a small macroeconomic model 
Abstract:
  This article derives an optimal Taylor rule for the UK economy using a
 simple estimated model based on data prior to the financial crisis of
 2008. Optimal policy rules are calculated using simulation of the model
 over a long time period coupled with a search for optimal Taylor rule
 parameters using the Newton-Raphson loss minimization algorithm. The
 weights in the pre-crisis loss function are then inferred from the Taylor
 rule parameters estimated from the period corresponding to Bank of England
 independence, i.e. 1997--2008. These estimates are consistent with a low
 weight on inflation relative to output stabilization even before the
 crisis. The model is therefore consistent with the hypothesis that there
 has been no change in Bank of England preferences and that the Bank has
 responded to the crisis in a way which would have been predicted on the
 basis of its pre-crisis behaviour. 
Journal: Applied Economics 
Pages: 2745-2750 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2011.629985 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.629985 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2745-2750




Template-Type: ReDIF-Article 1.0
Author-Name: Constantin Belu 
Author-X-Name-First: Constantin 
Author-X-Name-Last: Belu 
Author-Name: Cristiana Manescu 
Author-X-Name-First: Cristiana 
Author-X-Name-Last: Manescu 
Title: Strategic corporate social responsibility and economic performance 
Abstract:
  This article proposes a novel Corporate Social Responsibility (CSR) index
 based on a Data Envelopment Analysis (DEA) model. Acknowledging the
 argument that companies might favour those CSR dimensions that provide
 strategic competitive advantages, we argue that the index can capture
 companies&#x2019; strategic approach to CSR. Furthermore, our findings
 reveal a neutral relationship between this strategic CSR index and
 economic performance as measured by Return on Assets (ROA) and Tobin's
 <italic>Q</italic>, when controlling for firm unobserved heterogeneity and
 past economic performance. By contrast, an equally-weighted index of the
 same CSR indicators is found to be negatively related with ROA, which
 reinforces our claim that this specific DEA-based index is a measure of
 strategic CSR. 
Journal: Applied Economics 
Pages: 2751-2764 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.676734 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.676734 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2751-2764




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Roma 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Roma 
Author-Name: Giuseppe Di Martino 
Author-X-Name-First: Giuseppe 
Author-X-Name-Last: Di Martino 
Author-Name: Giovanni Perrone 
Author-X-Name-First: Giovanni 
Author-X-Name-Last: Perrone 
Title: What to show on the wine labels: a hedonic analysis of price drivers of Sicilian wines 
Abstract:
  Unlike previous literature, we construct a hedonic model of wine price
 that incorporates all the main categories of variables simultaneously to
 enable a better evaluation of their importance on wine price formation. A
 comprehensive model has the advantage of providing more reliable estimates
 of the attributes' implicit prices thereby facilitating firms' pricing and
 improving effectiveness of wine production and marketing decisions. We
 utilize two different datasets of Sicilian wines collecting data from
 influential wine guides. Our results suggest that wine price strongly
 depends on objective features such as vintage, alcoholic content,
 geographical origin, grape variety, producer size and cellaring potential.
 In addition, use of containers like tonneaux and barrique positively
 affects prices, whereas use of concrete containers has a negative
 influence. No univocal indications emerge with regard to the effect of the
 type of company, type of viticulture and firm age. As for sensorial
 characteristics, our analysis provides novel evidence of the importance of
 olfactory variables such as aroma intensity and the presence of particular
 smells in the wine. Finally, current guides&#x2019; grades and firm
 reputation play a crucial role in determining wine prices as well. 
Journal: Applied Economics 
Pages: 2765-2778 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.678983 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.678983 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2765-2778




Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy   Philip Thornton 
Author-X-Name-First: Jeremy   Philip 
Author-X-Name-Last: Thornton 
Author-Name: Sara Helms 
Author-X-Name-First: Sara 
Author-X-Name-Last: Helms 
Title: Afterlife incentives in charitable giving 
Abstract:
  There is an expanding literature that examines the influence of religion
 on economic behaviour. Researchers typically do not distinguish among
 religions, masking important variation across doctrines. Our article
 adopts a typology of religions based on the construct of salvific merit.
 Major religious doctrines are ordered based on their linkage between
 charitable behaviour in this life and condition in the afterlife. Using
 the Center on Philanthropy Panel Study (COPPS), we exploit variation in
 household marginal tax rates (a subsidy to charitable giving) to test the
 influence of major religious doctrines on charitable giving. We find that
 charitable giving by adherents to high-salvific-merit religions are less
 sensitive to changes in charitable subsidies. Adherents to
 low-salvific-merit religions behave more like nonreligious households. Our
 results suggest that religious households optimize according to specific
 doctrines rather than a broad notion of religion. 
Journal: Applied Economics 
Pages: 2779-2791 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.678984 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.678984 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2779-2791




Template-Type: ReDIF-Article 1.0
Author-Name: Victor   V. Claar 
Author-X-Name-First: Victor   V. 
Author-X-Name-Last: Claar 
Author-Name: Christine Cain 
Author-X-Name-First: Christine 
Author-X-Name-Last: Cain 
Author-Name: Ross   D. Poll 
Author-X-Name-First: Ross   D. 
Author-X-Name-Last: Poll 
Title: Spreading academic pay over nine or twelve months: economists are supposed to know better, but do they act better? 
Abstract:
  Our article empirically considers two general hypotheses related to the
 literature of behavioural economics. First, we test the null hypothesis
 that individuals behave, on average, in a manner more consistent with the
 rational expectations hypothesis than with the idea of self-control in the
 face of hyperbolic discounting in their saving decisions. Second, along a
 variety of dimensions, we examine whether individuals exhibit Herbert
 Simon's notion that the goal formation of individuals will differ
 depending upon their relative levels of experience and knowledge. Perhaps
 there are significant differences among groups in their saving decisions
 that depend upon their apparent levels of intelligence, education and
 knowledge. Finally, using a variety of individual-specific control
 variables, we test for robustness of the results. 
Journal: Applied Economics 
Pages: 2792-2800 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.681027 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.681027 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2792-2800




Template-Type: ReDIF-Article 1.0
Author-Name: Eddie   Chi-man Hui 
Author-X-Name-First: Eddie   Chi-man 
Author-X-Name-Last: Hui 
Author-Name: Xian Zheng 
Author-X-Name-First: Xian 
Author-X-Name-Last: Zheng 
Author-Name: Hui Wang 
Author-X-Name-First: Hui 
Author-X-Name-Last: Wang 
Title: Investor sentiment and risk appetite of real estate security market 
Abstract:
  This article proposes a new model to measure the risk appetite in absence
 of option prices. Without options transaction, traditional measurements
 cannot be made. This article establishes a Risk Appetite (RA) indicator by
 way of change measure and simulation, with two density functions, i.e.
 risk-neutral density and historical density. The RA indicators use the
 data from the Property Composite Index (PCI) and the Shanghai Stock
 Exchange Composite Index (SSECI). The empirical result shows that
 investors involved in the real estate security market have lower RA
 compared to those in the general security market. Particularly, RA
 indicators for both indices started to fall markedly in early 2008 and
 even more so after September 2008. The changes in RA suggest that the
 overall investors&#x2019; attitudes nowadays towards China's stock market
 are never as pessimistic as before. 
Journal: Applied Economics 
Pages: 2801-2807 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.681028 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.681028 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2801-2807




Template-Type: ReDIF-Article 1.0
Author-Name: Margherita Comola 
Author-X-Name-First: Margherita 
Author-X-Name-Last: Comola 
Author-Name: Luiz de Mello 
Author-X-Name-First: Luiz 
Author-X-Name-Last: de Mello 
Title: Salaried employment and earnings in Indonesia: new evidence on the selection bias 
Abstract:
  This article uses household survey data to estimate the determinants of
 earnings in Indonesia, a country where nonsalaried work is widespread and
 earnings data are available for salaried employees only. We deal with the
 selection bias by estimating a Full-Information Maximum Likelihood (FIML)
 system of equations, where selection into the labour market is modelled in
 a multinomial setting. We find that some estimated parameters of the
 earnings equation differ from a binomial selection procedure by Heckman
 (1979), in particular for those variables with the strongest impact on the
 selection into the different labour-market statuses. However, the
 estimated returns to education are unaffected, even when we deal with the
 endogeneity of educational attainment following Duflo (2001). Overall, our
 findings show that the choice of the selection rule affects the estimates
 of the earnings determinants in the Indonesian labour market. 
Journal: Applied Economics 
Pages: 2808-2816 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.667551 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667551 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2808-2816




Template-Type: ReDIF-Article 1.0
Author-Name: Sharmistha Nag 
Author-X-Name-First: Sharmistha 
Author-X-Name-Last: Nag 
Author-Name: Hui Yang 
Author-X-Name-First: Hui 
Author-X-Name-Last: Yang 
Author-Name: Steven Buccola 
Author-X-Name-First: Steven 
Author-X-Name-Last: Buccola 
Author-Name: David Ervin 
Author-X-Name-First: David 
Author-X-Name-Last: Ervin 
Title: Productivity and financial support in academic bioscience 
Abstract:
  Despite widespread awareness that scientific record and grant funding
 reinforce one another, empirical models of scientific production normally
 consider laboratory inputs to be exogenous. The present article employs a
 cross-section of academic bioscientists to examine the mutual relationship
 between research output and financial support. Information's nonrival
 character is such that scientific output and funding success cannot be
 expressed in strictly supply-and-demand terms. We find the typical
 bioscience laboratory to operate in a range of decreasing returns to scale
 and to over-invest in laboratory equipment and materials. Publication and
 funding success strongly reinforce one another, explaining the
 right-skewed success distributions often observed in science. 
Journal: Applied Economics 
Pages: 2817-2826 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.676737 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.676737 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2817-2826




Template-Type: ReDIF-Article 1.0
Author-Name: Gunnar Isacsson 
Author-X-Name-First: Gunnar 
Author-X-Name-Last: Isacsson 
Author-Name: Anders Karlstr&#xF6;m 
Author-X-Name-First: Anders 
Author-X-Name-Last: Karlstr&#xF6;m 
Author-Name: Jan-Erik Sw&#xE4;rdh 
Author-X-Name-First: Jan-Erik 
Author-X-Name-Last: Sw&#xE4;rdh 
Title: The value of commuting time in an empirical on-the-job search model -- an application based on moments from two samples 
Abstract:
  This article estimates the Value of Commuting Time (VOCT) among Swedish
 males in an empirical on-the-job search model. It uses a large sample of
 employee-establishment linked data obtained from administrative registers.
 The sample lacks information on mode choice for the journey to work. We
 therefore estimate a mode choice model on another sample and use this
 model to link the administrative data to the relevant set of travel times,
 costs and distances. The VOCT is found to be 1.8 times the net hourly wage
 rate in the sample. The relatively high estimate results from a high VOCT
 among cohabiting men. 
Journal: Applied Economics 
Pages: 2827-2837 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.678981 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.678981 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2827-2837




Template-Type: ReDIF-Article 1.0
Author-Name: James   Peery Cover 
Author-X-Name-First: James   Peery 
Author-X-Name-Last: Cover 
Author-Name: Eric Olson 
Author-X-Name-First: Eric 
Author-X-Name-Last: Olson 
Title: Using Romer and Romer's new measure of monetary policy shocks to identify the AD and AS shocks 
Abstract:
  This article re-examines the series of (exogenous) Federal Funds Rate
 (FFR) shocks created by Romer and Romer (2004) for the period
 1969:01--1996:12. We hypothesize that if Romer and Romer have constructed
 a reasonable set of monetary policy shocks, then including them in a small
 Vector Autoregression (VAR) should help to identify other structural
 shocks that affected the United States economy during their sample period.
 Using a sample period of 1971:01--1996:12 we are easily able to identify
 both an Aggregate Demand (AD) shock and an Aggregate Supply (AS) shock
 without imposing any sign or long-run restrictions. We present historical
 decompositions that allow us to compare the relative importance of these
 shocks with that of the exogenous monetary policy shocks in explaining
 output fluctuations during the 1973--1975, 1980--1984 and 1990--1991
 business cycle episodes. 
Journal: Applied Economics 
Pages: 2838-2846 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.681029 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.681029 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2838-2846




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Chi-Wei Su 
Author-X-Name-First: Chi-Wei 
Author-X-Name-Last: Su 
Title: Revisiting purchasing power parity for East Asian countries using the rank test for nonlinear cointegration 
Abstract:
  This study applies a simple and powerful nonlinear rank test, proposed by
 Breitung (2001) to test the validity of long-run Purchasing Power Parity
 (PPP) in a sample of East Asian countries over the period March
 1985--September 2008. The empirical results indicate that PPP holds for
 all of East Asian countries studied and the nominal exchange rate,
 domestic Consumer Price Index (CPI) and the US CPI are all linearly
 interrelated with the exception of China. Our results have important
 policy implications for these East Asian countries under study. 
Journal: Applied Economics 
Pages: 2847-2852 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.657354 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.657354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2847-2852




Template-Type: ReDIF-Article 1.0
Author-Name: Frank   Wogbe Agbola 
Author-X-Name-First: Frank   Wogbe 
Author-X-Name-Last: Agbola 
Title: Does human capital constrain the impact of foreign direct investment and remittances on economic growth in Ghana? 
Abstract:
  This article empirically investigates whether human capital constrains
 the impact of Foreign Direct Investment (FDI) and remittances on economic
 growth in Ghana. An economic growth model for Ghana is specified and
 estimated using Fully Modified Ordinary Least Squares (FMOLS) estimator
 and employing annual data spanning the period 1965 to 2008. Empirical
 results indicate that FDI and remittances are key determinants of economic
 growth in Ghana. Results indicate that human capital enhances the impact
 of FDI and remittances on economic growth. Although both government
 expenditure and trade openness are growth-enhancing, government
 expenditure appears to crowd-out private investment. Empirical results
 also indicate that domestic inflationary pressures, unstable political
 environment and volatile global economy exert a negative impact on
 economic growth in Ghana. 
Journal: Applied Economics 
Pages: 2853-2862 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.676735 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.676735 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2853-2862




Template-Type: ReDIF-Article 1.0
Author-Name: Susi St&#xF6;rmer 
Author-X-Name-First: Susi 
Author-X-Name-Last: St&#xF6;rmer 
Author-Name: Ren順ahr 
Author-X-Name-First: Ren頍
Author-X-Name-Last: Fahr 
Title: Individual determinants of work attendance: evidence on the role of personality 
Abstract:
  We investigate the influence of personality as measured by the Big Five
 personality scale on absenteeism using the 2005 wave of the German
 Socio-Economic Panel (GSOEP). Estimates of a double hurdle negative
 binomial regression allow us to test hypotheses on the influence of the
 Big Five personality traits on work attendance. Our findings augment
 previous results on the link between personality and absenteeism by
 analysing representative data and including a large set of control
 variables typically not available in small scale surveys. We find clear
 negative correlations between the absence probability and
 <italic>Conscientiousness</italic> among women. For male employees a
 negative correlation with the incidence of absence is observed for the
 <italic>Agreeableness</italic> dimension. When looking at the length of
 absence occurrences <italic>Neuroticism</italic> is found to significantly
 influence male absenteeism despite controlling for the subjective health
 of the individual. Following the reasoning by Bowles
 <italic>et&#xA0;al</italic>. (2001) for the provision of effort by
 employees, employers might pay for incentive-enhancing preferences such as
 low <italic>Neuroticism</italic> among male employees because employers
 can only insufficiently monitor the true level of sickness of their
 employees and consequently want to avoid voluntary absenteeism. 
Journal: Applied Economics 
Pages: 2863-2875 
Issue: 19 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.684789 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.684789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2863-2875




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew   H. Chen 
Author-X-Name-First: Andrew   H. 
Author-X-Name-Last: Chen 
Author-Name: Frank   J. Fabozzi 
Author-X-Name-First: Frank   J. 
Author-X-Name-Last: Fabozzi 
Author-Name: Dashan Huang 
Author-X-Name-First: Dashan 
Author-X-Name-Last: Huang 
Title: Optimal corporate strategy under uncertainty 
Abstract:
  Within a dynamic setting, optimal corporate strategy management for a
 multi-division corporation involves restructuring a portfolio of Strategic
 Business Units (SBUs) periodically so as to maximize the firm's market
 value. Real option theory has been applied to model and explain managerial
 flexibility for both project selection and operational decisions. In
 general, optimal corporate strategy has focused on strategic environments
 and characteristics of business units rather than on managerial
 flexibility. In this article, we develop a feasible discrete-time model
 for optimal corporate strategy that incorporates both endogenous and
 exogenous factors and is consistent with the value-based criterion for
 maximizing shareholders&#x2019; wealth. 
Journal: Applied Economics 
Pages: 2877-2882 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.684791 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.684791 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2877-2882




Template-Type: ReDIF-Article 1.0
Author-Name: Yung   Chuan Lee 
Author-X-Name-First: Yung   Chuan 
Author-X-Name-Last: Lee 
Author-Name: Su-Lien Lu 
Author-X-Name-First: Su-Lien 
Author-X-Name-Last: Lu 
Title: A comparative analysis of independent director appointments on stock price behaviour: an empirical investigation based on the Markov regime-switching model 
Abstract:
  In 2002, the Taiwanese government regulated that new companies should
 appoint independent directors for good corporate governance. The purpose
 of this article is to compare appointing independent directors' motivation
 of structural changes in stock behaviour. The empirical results showed
 that the companies with mandatory or voluntary independent director
 appointments significantly reduced both stock returns and risks over
 2000--2006. 
Journal: Applied Economics 
Pages: 2883-2893 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.687093 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2883-2893




Template-Type: ReDIF-Article 1.0
Author-Name: Kuo-Yuan Liang 
Author-X-Name-First: Kuo-Yuan 
Author-X-Name-Last: Liang 
Author-Name: Chen-Hui Yen 
Author-X-Name-First: Chen-Hui 
Author-X-Name-Last: Yen 
Title: Measuring CPI's reliability: the stochastic approach to index numbers revisited 
Abstract:
  The reliability measurement of the Consumer Price Index (CPI) has
 recently drawn much attention, as the index number has been criticized for
 its inaccuracy in accessing the degree of inflation. This article centers
 on providing a new regression specification that can help better gauge the
 CPI's reliability. More specifically, based on the stochastic approach to
 index numbers, we argue that the conventional treatment of the systematic
 changes in relative prices should be made time variant. We therefore
 propose a more comprehensive regression specification by including
 additional dummies that represent different general inflation rate levels
 and business cycle phases. Under this framework, we are more capable of
 avoiding possible misspecifications in the regression equation, as was
 experienced by Clements and Izan (1987). It also allows us to better
 answer the &#x2018;Keynes&#x2019; critic&#x2019; regarding the stochastic
 approach to index numbers. The empirical results of Australia and the US
 are used to validate the merit of our specification. 
Journal: Applied Economics 
Pages: 2894-2908 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.687097 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687097 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2894-2908




Template-Type: ReDIF-Article 1.0
Author-Name: Vu   Thanh Hai 
Author-X-Name-First: Vu   Thanh 
Author-X-Name-Last: Hai 
Author-Name: Albert   K. Tsui 
Author-X-Name-First: Albert   K. 
Author-X-Name-Last: Tsui 
Author-Name: Zhaoyong Zhang 
Author-X-Name-First: Zhaoyong 
Author-X-Name-Last: Zhang 
Title: Measuring asymmetry and persistence in conditional volatility in real output: evidence from three East Asian tigers using a multivariate GARCH approach 
Abstract:
  We search for evidence of conditional volatility in the quarterly real
 Gross Domestic Product (GDP) growth rates of three East Asian tigers:
 Singapore, Hong Kong and Taiwan. The widely accepted Exponential
 Generalized Autoregressive Conditional Heteroscedasticity (EGARCH)-type
 model is used to capture the existence of asymmetric volatility and the
 potential structural break points in the volatility. We find evidence of
 asymmetry and persistence in the volatility of GDP growth rates. It is
 noted that the structural breakpoints of volatility correspond reasonably
 well to the historical economic and political events in these economies.
 Policy implications from our findings are discussed. 
Journal: Applied Economics 
Pages: 2909-2914 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.687098 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687098 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2909-2914




Template-Type: ReDIF-Article 1.0
Author-Name: Belen Usero 
Author-X-Name-First: Belen 
Author-X-Name-Last: Usero 
Author-Name: Grigorios Asimakopoulos 
Author-X-Name-First: Grigorios 
Author-X-Name-Last: Asimakopoulos 
Title: Productivity change and its determinants among leading mobile operators in Europe 
Abstract:
  The European mobile telecommunications industry has seen increased
 competition and market saturation in recent years, so improving
 productivity will become crucially important for mobile operators in the
 near future. This study adopts a bootstrap Malmquist index approach to
 estimate productivity change among a sample of 23 of Europe's leading
 mobile operators over the 2008 to 2009 period. Using a second-stage
 regression, this article also analyses the determinants of productivity
 changes in terms of regulation, competition and ownership structure. The
 results show that mobile companies operating in countries that have
 recently joined the EU have a positive association with productivity
 change, in contrast to their counterparts in South-East Europe. Concerning
 market competition, the leading mobile operators that experience higher
 productivity changes operate in more concentrated markets. The results
 also indicate that international mobile operators perform better in terms
 of productivity change than their national equivalents. Finally, some of
 the implications of the findings for mobile operators&#x2019; management
 and policymakers are provided. 
Journal: Applied Economics 
Pages: 2915-2925 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.687100 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687100 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2915-2925




Template-Type: ReDIF-Article 1.0
Author-Name: Saeid Mahdavi 
Author-X-Name-First: Saeid 
Author-X-Name-Last: Mahdavi 
Author-Name: Emmanuel Alanis 
Author-X-Name-First: Emmanuel 
Author-X-Name-Last: Alanis 
Title: Public expenditures and the unemployment rate in the American states: panel evidence 
Abstract:
  We reexamine the Unemployment Rate (UR) -- government expenditure nexus
 in a panel of 50 State and Local Governments (SLGs) over the period
 1977--2006 to provide new pre-recession empirical evidence that helps put
 the expectations on the effects of the federal relief to SLGs in a broader
 context. We found that: (1) per capita real public spending (total and
 capital, assistance and subsidies, wages and salaries, and social
 insurance categories) was part of a cointegrating relationship with UR and
 real per capita state personal income. (2) With the exception of social
 insurance, other spending variables, when statistically significant,
 actually had a depressing effect on UR. The magnitude of this effect,
 however, was generally small. UR was most sensitive to increases in wages
 and salaries. (3) Long-term causality analysis based on panel
 error-correction coefficients provided consistent evidence of a causal
 effect from spending to UR, but less consistent evidence of such effect in
 the opposite direction. Social insurance, however, drove UR. (4) The size
 of the error-correction coefficients suggested a slow response of UR to
 deviations from the cointegrating relationship. (5) The marginal effect of
 spending on UR increased with the amount of the federal grants received.
 Our results suggest that public spending may not serve as a quick fix in
 relation to UR. They also seem to favour allocation of the federal funds
 to wage and salaries and assistance and subsidies, but not to capital and
 social insurance expenditures to lower UR. 
Journal: Applied Economics 
Pages: 2926-2937 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.690849 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690849 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2926-2937




Template-Type: ReDIF-Article 1.0
Author-Name: Kurt   A. Hafner 
Author-X-Name-First: Kurt   A. 
Author-X-Name-Last: Hafner 
Title: Agglomeration economies and clustering -- evidence from German and European firms 
Abstract:
  This article empirically analyses the impact of agglomeration economies
 on the clustering of German and European firms using partial
 proportional-odds models. Firms are grouped according to industry and
 divided into departments. At the industry level, I find evidence for
 <italic>inter-industry economies</italic> derived from the New Economic
 Geography (NEG) framework for European firms in general and German
 knowledge-intensive firms in particular. At the department level,
 Marshallian Externalities such as the hiring of skilled labour and
 technological spillover, and therefore <italic>intra-industry
 economies</italic>, are empirically confirmed for European and German
 departments like Human Resources and R&D but rarely for others. 
Journal: Applied Economics 
Pages: 2938-2953 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.690850 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690850 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2938-2953




Template-Type: ReDIF-Article 1.0
Author-Name: Lien-Ti Bei 
Author-X-Name-First: Lien-Ti 
Author-X-Name-Last: Bei 
Author-Name: Tsung-Chi Cheng 
Author-X-Name-First: Tsung-Chi 
Author-X-Name-Last: Cheng 
Title: Brand power index -- using principal component analysis 
Abstract:
  A relatively simple approach is proposed to evaluate the strength of
 brands from the viewpoint of consumers. It employs Principal Component
 Analysis (PCA), in which the coefficients of the first principal component
 are used as the weight for developing our study's final
 &#x2018;product&#x2019;, the Brand Power Index (BPI). Empirical
 consumer-survey data of two product categories: televisions and mobile
 phones illustrate that the patterns of PCA results for both televisions
 and mobile phones are extremely similar. The biplots reveal that the
 leading brands in both product categories had positive component scores;
 more than a dozen following brands had positive first component scores and
 negative second component scores in both categories. This led us to a
 visual examination of the data on certain leading brands with regard to
 their brand excellence. 
Journal: Applied Economics 
Pages: 2954-2960 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.690853 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690853 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2954-2960




Template-Type: ReDIF-Article 1.0
Author-Name: Ashoka Mody 
Author-X-Name-First: Ashoka 
Author-X-Name-Last: Mody 
Author-Name: Mark   P. Taylor 
Author-X-Name-First: Mark   P. 
Author-X-Name-Last: Taylor 
Title: International capital crunches: the time-varying role of informational asymmetries 
Abstract:
  We examine the determinants of capital flows to four developing countries
 during the 1990s using an explicitly disequilibrium econometric framework
 in which the supply and demand for capital are not necessarily equal and
 the actual amount of the flow is determined by the &#x2018;short
 side&#x2019; of the market. We are thus able to detect instances of
 &#x2018;international capital crunch&#x2019; -- where capital flows are
 curtailed because of supply-side rationing -- and to relate these
 instances to movements in the underlying fundamentals. The analysis
 highlights the role of asymmetric information -- as distinct from the
 traditional concern with default risk -- in conditioning capital flows. 
Journal: Applied Economics 
Pages: 2961-2973 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.657355 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.657355 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2961-2973




Template-Type: ReDIF-Article 1.0
Author-Name: Obiyathulla   Ismath Bacha 
Author-X-Name-First: Obiyathulla   Ismath 
Author-X-Name-Last: Bacha 
Author-Name: Azhar Mohamad 
Author-X-Name-First: Azhar 
Author-X-Name-Last: Mohamad 
Author-Name: Sharifah   Raihan Syed Mohd Zain 
Author-X-Name-First: Sharifah   Raihan Syed Mohd 
Author-X-Name-Last: Zain 
Author-Name: Mohd   Eskandar Shah Mohd Rasid 
Author-X-Name-First: Mohd   Eskandar Shah Mohd 
Author-X-Name-Last: Rasid 
Title: Foreign exchange exposure and impact of policy switch -- the case of Malaysian listed firms 
Abstract:
  This article undertakes an in-depth study of the foreign exchange
 exposure of Malaysian listed firms. We examine several issues related to
 firm-specific and overall exposure, including an evaluation of the
 efficacy of adopting a hard-peg on such exposure. Our sample consists of
 158 listed firms and spans the 16 year period, 1990--2005. A multivariate
 model using four bilateral exchange rates is used to determine firm level
 exposure while panel data analysis using a random-effects Generalized
 Least Squares (GLS) model is used to determine system-wide or aggregate
 sample exposure. We find a total 71% of our sample firms to have
 significant exchange rate exposure, a rate substantially higher than that
 reported for most countries, especially developed ones. The US$ is by far
 the single most important source of exposure with 63% of sample firms
 exposed to it. The sign of the beta coefficient for three of the four
 currencies are negative, implying that our sample firms are largely net
 importers in these currencies. We find exposure to be time variant and
 dependent on the sector within which a firm operates. Interestingly, the
 panel data analysis which measures aggregate exposure, shows the US$ to be
 a significant source of exposure even with the adoption of the hard peg.
 The change in policy regime to a fixed peg following the crisis appears to
 have had no impact at either firm-level exposure or overall system-wide
 exposure. 
Journal: Applied Economics 
Pages: 2974-2984 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.684790 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.684790 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2974-2984




Template-Type: ReDIF-Article 1.0
Author-Name: Takaaki Aoki 
Author-X-Name-First: Takaaki 
Author-X-Name-Last: Aoki 
Title: An empirical analysis on the law of purchasing power parity and international economic deepening 
Abstract:
  This article empirically investigates the effect of international trade
 on the deviation of Purchasing Power Parity (PPP) law and on the
 international economic deepening in four developed countries (Japan, USA,
 UK and France), and three Asian developing ones (South Korea, Singapore
 and Malaysia), using International Financial Statistics (IFS) data issued
 by International Monetary Fund (IMF). Our results show that in some
 developed countries the imbalance effect of balance of payments is
 significant for both international deepening and deviation from PPP, and
 in some developing countries the volume effect of balance of payments is
 significant for international deepening. 
Journal: Applied Economics 
Pages: 2985-2993 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.684792 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.684792 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2985-2993




Template-Type: ReDIF-Article 1.0
Author-Name: Gigi Foster 
Author-X-Name-First: Gigi 
Author-X-Name-Last: Foster 
Author-Name: Charlene   M. Kalenkoski 
Author-X-Name-First: Charlene   M. 
Author-X-Name-Last: Kalenkoski 
Title: Tobit or OLS? An empirical evaluation under different diary window lengths 
Abstract:
  Researchers analysing time-use data often estimate limited dependent
 variable models because time spent must be nonnegative and cannot be more
 than the total amount of time in a given observation period. While the
 traditional empirical technique applied to such cases is maximum
 likelihood estimation of a Tobit (censored regression) model, recent
 debate has questioned whether linear models estimated via Ordinary Least
 Squares (OLS) are preferable. On the one hand, Tobit models are deemed
 necessary to address the significant censoring (i.e. large numbers of
 zeroes) typically found in time-use data, in the face of which OLS
 estimators would be biased and inconsistent. Yet, optimization occurs over
 a longer period than that covered by the typical time diary (often a day),
 and thus some argue that reported zeroes represent a measurement problem
 rather than true nonparticipation in the activity, in which case OLS would
 be preferred. We provide direct empirical evidence on this question using
 the Australian Time Use Surveys, which record time-use information for two
 consecutive diary days, by estimating censored and linear versions of a
 parental child care model for both 24-hour and 48-hour windows of
 observation in order to determine the empirical consequences of estimation
 technique and diary length. 
Journal: Applied Economics 
Pages: 2994-3010 
Issue: 20 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.690852 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690852 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2994-3010




Template-Type: ReDIF-Article 1.0
Author-Name: Pang-Tien Lieu 
Author-X-Name-First: Pang-Tien 
Author-X-Name-Last: Lieu 
Author-Name: Chinkun Chang 
Author-X-Name-First: Chinkun 
Author-X-Name-Last: Chang 
Author-Name: Philip Mizzi 
Author-X-Name-First: Philip 
Author-X-Name-Last: Mizzi 
Title: Estimating the true cost of living for households with different incomes using data from Taiwan 
Abstract:
  This empirical study investigates why the true costs of living for
 different income groups in Taiwan as measured by the superlative
 T&#xF6;rnqvist price index have grown dissimilarly over the sample period.
 Specifically, it shows that using the aggregate Cost of Living (COL)
 estimates for the entire households as is commonly practiced would produce
 noticeable group bias effect in measurement. Also the magnitude of the
 commodity substitution bias in the conventional Consumer Price Index (CPI)
 is found to be positively related to household income in general. Because
 of the presence of these two biases, the true COL for households belonging
 to the two ends of the income spectrum is found to be over-estimated. This
 article is therefore in full agreement with Arrow's proposition that an
 alternative and separate set of price index be constructed. 
Journal: Applied Economics 
Pages: 3011-3023 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.692872 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.692872 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3011-3023




Template-Type: ReDIF-Article 1.0
Author-Name: Irma Hindrayanto 
Author-X-Name-First: Irma 
Author-X-Name-Last: Hindrayanto 
Author-Name: John   A.D. Aston 
Author-X-Name-First: John   A.D. 
Author-X-Name-Last: Aston 
Author-Name: Siem   Jan Koopman 
Author-X-Name-First: Siem   Jan 
Author-X-Name-Last: Koopman 
Author-Name: Marius Ooms 
Author-X-Name-First: Marius 
Author-X-Name-Last: Ooms 
Title: Modelling trigonometric seasonal components for monthly economic time series 
Abstract:
  The basic structural time series model has been designed for the
 modelling and forecasting of seasonal economic time series. In this
 article, we explore a generalization of the basic structural time series
 model in which the time-varying trigonometric terms associated with
 different seasonal frequencies have different variances for their
 disturbances. The contribution of the article is two-fold. The first aim
 is to investigate the dynamic properties of this frequency-specific Basic
 Structural Model (BSM). The second aim is to relate the model to a
 comparable generalized version of the Airline model developed at the US
 Census Bureau. By adopting a quadratic distance metric based on the
 restricted reduced form moving-average representation of the models, we
 conclude that the generalized models have properties that are close to
 each other compared to their default counterparts. In some settings, the
 distance between the models is almost zero so that the models can be
 regarded as observationally equivalent. An extensive empirical study on
 disaggregated monthly shipment and foreign trade series illustrates the
 improvements of the frequency-specific extension and investigates the
 relations between the two classes of models. 
Journal: Applied Economics 
Pages: 3024-3034 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.690937 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690937 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3024-3034




Template-Type: ReDIF-Article 1.0
Author-Name: Ying   Sophie Huang 
Author-X-Name-First: Ying   Sophie 
Author-X-Name-Last: Huang 
Author-Name: Carl   R. Chen 
Author-X-Name-First: Carl   R. 
Author-X-Name-Last: Chen 
Title: Are college chief executives paid like corporate CEOs or bureaucrats? 
Abstract:
  We study compensation of college chief executives from 1997 to 2004.
 Although presidential salaries have acquired the attention of the media,
 Congress, and the Internal Revenue Service (IRS) in recent years, they are
 much below those of corporate CEOs. Compared with CEOs in corporations
 with comparable sizes, college chief executives earn on average
 approximately one-third of the compensation of their corporate
 counterparts. However, CEO compensation is more volatile than that of
 college chief executives. Our results show that private college
 presidential salaries are consistent with the prediction of job complexity
 and institutional reputation hypotheses. Presidential compensations of
 public research universities, on the other hand, are more consistent with
 the prediction of job complexity hypothesis only. Hence, our findings do
 not support the prediction of bureaucrat hypothesis for both private and
 public institutions. 
Journal: Applied Economics 
Pages: 3035-3043 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.695070 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.695070 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3035-3043




Template-Type: ReDIF-Article 1.0
Author-Name: Nissim Ben David 
Author-X-Name-First: Nissim 
Author-X-Name-Last: Ben David 
Title: Predicting housing prices according to expected future interest rate 
Abstract:
  In this article, I present a theoretical model for predicting future
 housing prices as a function of the expected future interest rate, housing
 depreciation and rent rate. Focusing on the notion of arbitrage, where the
 returns on investing in housing is equal to the return on bonds, I
 forecast housing prices in the US as a function of the expected future
 interest rate on corporate bonds graded at categories AAA or AA. I get
 that a change in the expected future bond yield will lead to a change in
 future housing prices. 
Journal: Applied Economics 
Pages: 3044-3048 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.697124 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.697124 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3044-3048




Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Yi Lin 
Author-X-Name-First: Ching-Yi 
Author-X-Name-Last: Lin 
Author-Name: Chun Wang 
Author-X-Name-First: Chun 
Author-X-Name-Last: Wang 
Title: Forecasting China's inflation in a data-rich environment 
Abstract:
  Inflation is one of the most recent critical issues facing China. To
 improve inflation forecasts within China, this study investigates the
 predictive ability of three dimension reduction techniques used in a
 data-rich environment: Principal Components Analysis (PCA), Sliced Inverse
 Regression (SIR), and Partial Least Squares (PLS) applied in the
 Factor-Augmented Autoregression (FAAR) model proposed by Stock and Watson
 (2005). Varied macroeconomic data from China between January 1998 and
 December 2009 are obtained to construct factors for use by three different
 techniques. The performance of different dimension reduction methods
 depends on forecasting horizons, the number of factors chosen, and the
 number of slices for SIR. The empirical study finds that the FAAR model
 with an optimal number of PCA factors outperforms the other model in
 out-of-sample inflation forecasting in China. 
Journal: Applied Economics 
Pages: 3049-3057 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.697122 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.697122 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3049-3057




Template-Type: ReDIF-Article 1.0
Author-Name: M. Aubry 
Author-X-Name-First: M. 
Author-X-Name-Last: Aubry 
Author-Name: P. Renou-Maissant 
Author-X-Name-First: P. 
Author-X-Name-Last: Renou-Maissant 
Title: Investigating the semiconductor industry cycles 
Abstract:
  The aim of this article is to investigate the links between semiconductor
 sales and various macroeconomic, financial, industrial variables including
 inventories, equipment orders or semiconductor sector stock index.
 Statistical properties of these variables are studied. Both short-run and
 long-run interactions are analysed. On the short-run, our results indicate
 that relationships often imply feedbacks. Through the implementation of
 cointegration analysis, we separately identify both sales value and
 investments in the semiconductor market. An impulse--response analysis
 confirms the relevance of our choice of data and stability tests
 demonstrate that the parameters remain constant during the entire sample.
 The Vector Error Correction Models (VECMs) offer a representation
 respecting cycle theories and market actor analyses. 
Journal: Applied Economics 
Pages: 3058-3067 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.697123 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.697123 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3058-3067




Template-Type: ReDIF-Article 1.0
Author-Name: C鬩ne Gondat-Larralde 
Author-X-Name-First: C鬩ne 
Author-X-Name-Last: Gondat-Larralde 
Author-Name: Frank Strobel 
Author-X-Name-First: Frank 
Author-X-Name-Last: Strobel 
Title: Uncertainty and switching in the mortgage market 
Abstract:
  We examine when it might be optimal for borrowers to switch providers of
 debt products such as their mortgage, allowing in particular for the role
 of uncertainty by constructing a stylized real options model of the
 decision problem involved. We illustrate with numerical examples, and then
 calibrate the model for the UK mortgage market for the period October 1998
 to March 2005; significant magnitudes of trigger levels can arise even
 when standard switching costs are zero, providing an additional,
 risk-related explanation to the inertia commonly observed in borrowers'
 product choices. 
Journal: Applied Economics 
Pages: 3068-3073 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/13504851.2012.690842 
File-URL: http://hdl.handle.net/10.1080/13504851.2012.690842 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3068-3073




Template-Type: ReDIF-Article 1.0
Author-Name: M. K. Jones 
Author-X-Name-First: M. K. 
Author-X-Name-Last: Jones 
Author-Name: R. J. Jones 
Author-X-Name-First: R. J. 
Author-X-Name-Last: Jones 
Author-Name: P. L. Latreille 
Author-X-Name-First: P. L. 
Author-X-Name-Last: Latreille 
Author-Name: P. D. Murphy 
Author-X-Name-First: P. D. 
Author-X-Name-Last: Murphy 
Author-Name: P. J. Sloane 
Author-X-Name-First: P. J. 
Author-X-Name-Last: Sloane 
Title: A regional analysis of flows into and out of the UK national minimum wage 
Abstract:
  This article utilizes the panel element of the UK Labour Force Survey
 (LFS) to identify for individual regions total inflows and outflows and
 hazards for those individuals paid at or below the National Minimum Wage
 (NMW). In particular, it examines the extent and direction of the
 correlation between low-pay inflows and outflows and the economic cycle.
 Further, it examines the impact of regional variations in the bite of the
 NMW on regional flows into and out of the NMW. 
Journal: Applied Economics 
Pages: 3074-3087 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.695069 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.695069 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3074-3087




Template-Type: ReDIF-Article 1.0
Author-Name: Kristofer M&#xE5;nsson 
Author-X-Name-First: Kristofer 
Author-X-Name-Last: M&#xE5;nsson 
Author-Name: Ghazi Shukur 
Author-X-Name-First: Ghazi 
Author-X-Name-Last: Shukur 
Author-Name: P&#xE4;r Sj&#xF6;lander 
Author-X-Name-First: P&#xE4;r 
Author-X-Name-Last: Sj&#xF6;lander 
Title: Asymmetric quantile analysis of the Swedish mortgage price discovery process 
Abstract:
  Based on Swedish banking data we discover robust and significantly
 positive Asymmetric Price Transmission (APT) effects over all analysed
 regression quantiles of our mortgage interest rates, with even larger
 positive APT for the higher percentiles. The analysis was enabled through
 unique access to a Swedish bank's (SEB) own records of their true
 borrowing costs. Our central contribution is that there is a higher
 propensity for the bank to rapidly increase its mortgage interest rates
 for customers following an increase in its borrowing costs, compared with
 the propensity for the bank to decrease its customers&#x2019; mortgage
 rates subsequent to a corresponding borrowing cost decrease. 
Journal: Applied Economics 
Pages: 3088-3101 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.681030 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.681030 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3088-3101




Template-Type: ReDIF-Article 1.0
Author-Name: Bo Sun 
Author-X-Name-First: Bo 
Author-X-Name-Last: Sun 
Title: The optimal shape of compensation contracts with earnings management 
Abstract:
  The research question of why earnings management occurs is decomposed
 into two questions in this article: Which component of executive
 compensation generates incentives for earnings management? and Why is the
 compensation structured that way in the first place? We first use as a
 dynamic stochastic equilibrium model to show that &#x2018;big bath&#x2019;
 and earning overstatement can co-exist as equilibrium financial reporting
 strategies when thresholds are used in compensation contracts. In order to
 understand the use of performance thresholds as a prevailing compensation
 strategy in practice, we then derive the optimal compensation contract
 when the manager is privately informed about economic earnings and his
 expertise in managing earnings. Equilibria exist in which the inactive
 region below a threshold in compensation should be economically
 significant. 
Journal: Applied Economics 
Pages: 3102-3109 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.699187 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699187 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3102-3109




Template-Type: ReDIF-Article 1.0
Author-Name: Zhuo Liu 
Author-X-Name-First: Zhuo 
Author-X-Name-Last: Liu 
Author-Name: Christopher   A. Kanter 
Author-X-Name-First: Christopher   A. 
Author-X-Name-Last: Kanter 
Author-Name: Kent   D. Messer 
Author-X-Name-First: Kent   D. 
Author-X-Name-Last: Messer 
Author-Name: Harry   M. Kaiser 
Author-X-Name-First: Harry   M. 
Author-X-Name-Last: Kaiser 
Title: Identifying significant characteristics of organic milk consumers: a CART analysis of an artefactual field experiment 
Abstract:
  The organic dairy category is one of the fastest growing categories of
 organic foods in the US. Organic milk consumers generally cite perceived
 health benefits and lower risk of food contamination, as well as perceived
 superior quality and environmental sustainability of organic farming
 methods, as the major motivations for preference of organic over
 conventional milk. While the attributes of organic milk that are valued by
 consumers are fairly well-known, more ambiguity exists regarding the
 demographic characteristics of the typical organic milk consumer. This
 research makes use of experimental data from 148 adult participants and
 use a Classification and Regression Tree (CART) analysis, a nonparametric
 modelling approach, to identify how Willingness-to-Pay (WTP) for organic
 milk varies with the demographic profile of experiment participants. The
 study finds that perceived taste of organic milk, concern for the risk of
 consuming conventional milk, being a primary shopper, and the quantity of
 milk consumed are the major factors that separate experiment participants
 into groups with high and low WTP for organic milk. 
Journal: Applied Economics 
Pages: 3110-3121 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.699189 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699189 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3110-3121




Template-Type: ReDIF-Article 1.0
Author-Name: Tidiane Kinda 
Author-X-Name-First: Tidiane 
Author-X-Name-Last: Kinda 
Title: Oil windfall, public spending and price stability: modelling inflation in Chad&#x2020; 
Abstract:
  This article examines the determinants of inflation in Chad using
 quarterly data from 1983:Q1 to 2009:Q3. The analysis is based on a
 single-equation model, completed by a Structural Vector Autoregression
 (SVAR) model to capture inflation persistence. The results show that the
 main determinants of inflation in Chad are rainfall, foreign prices,
 exchange rate movements and particularly public spending, which soared
 following the onset of oil production in 2003. The effects of rainfall
 shocks and changes in foreign prices on inflation persist during six
 quarters. Changes in public spending and the nominal exchange rate affect
 inflation during three and four quarters, respectively. <fn id="FN0001">
 &#x2020;The views expressed herein are those of the author and should not
 be attributed to the IMF, its Executive Board, or its management. </fn>  
Journal: Applied Economics 
Pages: 3122-3135 
Issue: 21 
Volume: 45 
Year: 2013 
Month: 7 
X-DOI: 10.1080/00036846.2012.690851 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690851 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3122-3135




Template-Type: ReDIF-Article 1.0
Author-Name: Debasri Mukherjee 
Author-X-Name-First: Debasri 
Author-X-Name-Last: Mukherjee 
Author-Name: Elsy   Thomas Kizhakethalackal 
Author-X-Name-First: Elsy   Thomas 
Author-X-Name-Last: Kizhakethalackal 
Title: Empirics of health-aid, education and infant mortality: a semiparametric study 
Abstract:
  The present article uses semiparametric regression to capture the impact
 of foreign-aid given for health purposes on the Infant Mortality Rate
 (IMR) of poor developing countries, after controlling for other
 covariates. We also investigate whether education (general awareness)
 helps lower IMR directly or helps improve effectiveness of health-aid in
 reducing IMR. In addition, the study investigates whether various
 disaggregated components of health-aid (for example, aid that goes for
 infectious disease control or nutrition) help lower IMR. We find that
 although adult education (awareness) always lowers IMR, the overall effect
 of health-aid remains insignificant. Our conclusion is robust to various
 disaggregated components of health-aid as well. We also check if
 health-aid has improved prenatal care for expecting mothers but our
 conclusion regarding the <italic>overall ineffectiveness</italic> of aid
 remains unchanged. <italic>Interestingly,</italic> we find that total
 health-aid as well as nutrition aid may lower IMR only after education
 exceeds a <italic>threshold</italic> level -- <italic>a new angle that has
 not been explicitly explored before</italic>. We also find interesting
 role of education in making the aid more effective for prenatal care. Our
 semiparametric nonlinear estimation strategy helps us unravel certain
 interesting thresholds and facts which cannot be captured in a linear
 parametric estimation framework. 
Journal: Applied Economics 
Pages: 3137-3150 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.699186 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699186 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3137-3150




Template-Type: ReDIF-Article 1.0
Author-Name: Simon   W. Bowmaker 
Author-X-Name-First: Simon   W. 
Author-X-Name-Last: Bowmaker 
Author-Name: Patrick   M. Emerson 
Author-X-Name-First: Patrick   M. 
Author-X-Name-Last: Emerson 
Title: Still waiting for Mister Right? Asymmetric information, abortion laws and the timing of marriage 
Abstract:
  Previous studies have suggested that more liberal abortion laws should
 lead to a decrease in marriage rates among young women as &#x2018;shotgun
 weddings&#x2019; are no longer necessary. Empirical evidence from the
 United States lends support to that hypothesis. This article presents an
 alternative theory of abortion access and marriage based on the cost of
 search which suggests that more liberal abortion laws may actually promote
 young marriage. An empirical examination of marriage data from Eastern
 Europe shows that countries that liberalized their abortion laws saw an
 increase in marriage rates among nonteenage women. 
Journal: Applied Economics 
Pages: 3151-3169 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.699188 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699188 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3151-3169




Template-Type: ReDIF-Article 1.0
Author-Name: Joras Ferwerda 
Author-X-Name-First: Joras 
Author-X-Name-Last: Ferwerda 
Author-Name: Mark Kattenberg 
Author-X-Name-First: Mark 
Author-X-Name-Last: Kattenberg 
Author-Name: Han-Hsin Chang 
Author-X-Name-First: Han-Hsin 
Author-X-Name-Last: Chang 
Author-Name: Brigitte Unger 
Author-X-Name-First: Brigitte 
Author-X-Name-Last: Unger 
Author-Name: Loek Groot 
Author-X-Name-First: Loek 
Author-X-Name-Last: Groot 
Author-Name: Jacob   A. Bikker 
Author-X-Name-First: Jacob   A. 
Author-X-Name-Last: Bikker 
Title: Gravity models of trade-based money laundering 
Abstract:
  Several attempts have been made in the literature to measure money
 laundering. However, the adequacy of these models is difficult to assess,
 as money laundering takes place secretly and, hence, goes unobserved. An
 exception is Trade-Based Money Laundering (TBML), a special form of trade
 abuse that has been discovered only recently. TBML refers to criminal
 proceeds that are transferred around the world using fake invoices that
 under- or overvalue imports and exports. This article is a first test on
 the well-known prototype models proposed by Walker and Unger to predict
 illicit money laundering flows and to apply traditional gravity models
 familiar in international trade theory. To do so, we use a dataset of
 Zdanowicz of TBML flows from the US to 199 countries. Our test rejects the
 specifications of the Walker and Unger prototype models, at least for
 TBML. The traditional gravity model that we present can explain TBML flows
 worldwide in a plausible manner. An important determinant is trade in
 which TBML is hidden. Furthermore, our results suggest that criminals use
 TBML in order to escape the stricter anti-money laundering regulations of
 financial markets. 
Journal: Applied Economics 
Pages: 3170-3182 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.699190 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699190 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3170-3182




Template-Type: ReDIF-Article 1.0
Author-Name: Regina   T. Riphahn 
Author-X-Name-First: Regina   T. 
Author-X-Name-Last: Riphahn 
Author-Name: Parvati Tr&#xFC;bswetter 
Author-X-Name-First: Parvati 
Author-X-Name-Last: Tr&#xFC;bswetter 
Title: The intergenerational transmission of education and equality of educational opportunity in East and West Germany 
Abstract:
  Socialist societies often emphasized the abolition of traditional social
 classes. To achieve this objective, educational opportunities were at
 times &#x2018;actively managed&#x2019; and allocated to children of less
 educated parents. What happened to these patterns after the demise of
 socialist rule in Eastern Europe? We study the development of educational
 mobility after the fall of the iron curtain in East Germany and compare
 the relevance of parental educational background for secondary schooling
 in East and West Germany. Based on the data from the German
 <italic>Mikrozensus</italic> we find that educational mobility is lower in
 East than in West Germany and that it has been falling in East Germany
 after unification. While the educational advantage of girls declined over
 time, having many siblings presents a more substantial disadvantage in
 East than in West Germany. 
Journal: Applied Economics 
Pages: 3183-3196 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.703314 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703314 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3183-3196




Template-Type: ReDIF-Article 1.0
Author-Name: Richard   E. Mueller 
Author-X-Name-First: Richard   E. 
Author-X-Name-Last: Mueller 
Title: A note on Canadian migration to the United States during the 1980s and 1990s 
Abstract:
  Considerable media attention had been directed towards the flow of highly
 talented Canadians to the United States in the 1990s. There are firm
 theoretical reasons, however, to believe that qualitative differences in
 migration began as early as the 1980s, owing to the widening distribution
 of earnings and the related increased returns to education in the United
 States relative to Canada, both of which could result in qualitative
 improvements in the migration flow. US immigration policy remained
 essentially unchanged during the 1980s, but changed markedly in the 1990s
 owing to the implementation of the Canada--US Free Trade Agreement (CUFTA)
 and its successor, the North American Free Trade Agreement (NAFTA). We use
 a flexible empirical approach to document these changes in immigrant
 quality using 1980, 1990 and 2000 US census data. Our results suggest that
 improvements in Canadian immigrant quality occurred during the 1990s, but
 these also happened earlier, casting doubt on the hypothesis of improving
 Canadian immigrant quality in the 1990s. Quantile regressions also show
 that improvement in the entry quality of immigrants was not limited to the
 upper tail of the earnings distribution. 
Journal: Applied Economics 
Pages: 3197-3210 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.703311 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703311 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3197-3210




Template-Type: ReDIF-Article 1.0
Author-Name: Juan   Carlos Cuestas 
Author-X-Name-First: Juan   Carlos 
Author-X-Name-Last: Cuestas 
Author-Name: Karsten Staehr 
Author-X-Name-First: Karsten 
Author-X-Name-Last: Staehr 
Title: Fiscal shocks and budget balance persistence in the EU countries from Central and Eastern Europe 
Abstract:
  This article analyses the time series properties of the fiscal balance in
 the 10 EU countries from Central and Eastern Europe. The persistence of
 the fiscal balance is analysed by means of unit root tests that account
 for possible nonlinearities and structural changes. The linear and
 nonlinear unit root tests find only mild evidence in favour of the
 stationarity hypothesis, with asymmetric effects present in a few cases.
 After controlling for structural changes in the Data Generation Processes
 (DGPs), the results point to stationarity of the series. Thus, in spite of
 relatively steady headline figures, the budget balance processes in the EU
 countries from Central and Eastern Europe exhibit substantial instability. 
Journal: Applied Economics 
Pages: 3211-3219 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.703316 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703316 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3211-3219




Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Ayala 
Author-X-Name-First: Astrid 
Author-X-Name-Last: Ayala 
Author-Name: Juncal Cunado 
Author-X-Name-First: Juncal 
Author-X-Name-Last: Cunado 
Author-Name: Luis   Alberiko Gil-Alana 
Author-X-Name-First: Luis   Alberiko 
Author-X-Name-Last: Gil-Alana 
Title: Real convergence: empirical evidence for Latin America 
Abstract:
  This article investigates the real convergence of 17 Latin American
 countries to the US economy for the period 1950 to 2011. Time series
 methods are used to test stochastic and &#x3B2;-convergence. These methods
 include the possibility of one or two structural changes. The results show
 that when endogenous structural changes are considered several Latin
 American countries exhibit stochastic convergence. Nevertheless, real
 convergence to the US is found only for three Latin American countries:
 Chile, Costa Rica and Trinidad and Tobago, with these countries also
 presenting evidence of stochastic and &#x3B2;-convergence. 
Journal: Applied Economics 
Pages: 3220-3229 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.703317 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703317 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3220-3229




Template-Type: ReDIF-Article 1.0
Author-Name: Sotiris Vandoros 
Author-X-Name-First: Sotiris 
Author-X-Name-Last: Vandoros 
Author-Name: Panos Kanavos 
Author-X-Name-First: Panos 
Author-X-Name-Last: Kanavos 
Title: The generics paradox revisited: empirical evidence from regulated markets 
Abstract:
  Earlier studies have pointed at the presence of a generics paradox in the
 US prescription drug market. This article tests whether the generics
 paradox also holds in the presence of pricing and reimbursement regulation
 in six European prescription drug markets. Using proprietary pricing and
 market share data, the results of panel data analysis suggest that the
 generics paradox also holds in these markets. Neither generic entry nor
 generic market penetration affect prices of originator drugs downwards,
 and prices of originator drugs actually increase post-generic entry. 
Journal: Applied Economics 
Pages: 3230-3239 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.703313 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703313 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3230-3239




Template-Type: ReDIF-Article 1.0
Author-Name: Tilman Tacke 
Author-X-Name-First: Tilman 
Author-X-Name-Last: Tacke 
Author-Name: Robert   J. Waldmann 
Author-X-Name-First: Robert   J. 
Author-X-Name-Last: Waldmann 
Title: Infant mortality, relative income and public policy 
Abstract:
  Do health outcomes depend on relative income as well as on an
 individual's absolute level of income? We use infant mortality as a health
 status indicator and find a significant and positive link between infant
 mortality and income inequality using cross-national data for 93
 countries. Holding constant the income of each of the three poorest
 quintiles of a country's population, we find that an increase in the
 income of the upper 20% of the income distribution is associated with
 higher, not the lower infant mortality. Our results are robust and not
 just caused by the concave relationship between income and health. The
 estimates imply a decrease in infant mortality by 1.5% for a one
 percentage point decrease in the income share of the richest quintile. The
 overall results are sensitive to public policy: public health care
 expenditure, educational outcomes, and access to basic sanitation and safe
 water can explain the inequality--health relationship. Thus, our findings
 support the hypothesis of public disinvestment in human capital in
 countries with high income inequality. However, we are not able to
 determine whether public policy is a confounder or mediator of the
 relationship between income distribution and health. Relative deprivation
 caused by the income distance between an individual and the individual's
 reference group is another possible explanation for a direct effect from
 income inequality to health. 
Journal: Applied Economics 
Pages: 3240-3254 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.705429 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.705429 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3240-3254




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth   W. Clements 
Author-X-Name-First: Kenneth   W. 
Author-X-Name-Last: Clements 
Author-Name: H. Y. Izan 
Author-X-Name-First: H. Y. 
Author-X-Name-Last: Izan 
Author-Name: Yihui Lan 
Author-X-Name-First: Yihui 
Author-X-Name-Last: Lan 
Title: Volatility and stock price indexes 
Abstract:
  The stochastic approach to index numbers has been successfully applied to
 the estimation of inflation, the world interest rate and international
 competitiveness.&#x2009;One distinct advantage of this approach is that it
 provides the whole distribution of the index, not simply one value. In
 this article, we extend the stochastic approach to the estimation of a
 stock market index. We demonstrate how this approach can be used to
 identify &#x2018;redundant stocks&#x2019; that do not contribute
 significantly to the overall index.&#x2009;For index tracking purposes,
 these stocks can be safely excluded. 
Journal: Applied Economics 
Pages: 3255-3262 
Issue: 22 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.703315 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703315 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3255-3262




Template-Type: ReDIF-Article 1.0
Author-Name: Agapi   Lambrini Somwaru 
Author-X-Name-First: Agapi   Lambrini 
Author-X-Name-Last: Somwaru 
Title: Does trade liberalization and its associated increased economic activity affect permanently the value and pattern of trade flows? 
Abstract:
  Despite a number of multi-country case studies based on a variety of
 analytical frameworks and numerous econometric studies using large
 cross-country data sets that analyse trade openness and its induced
 economic activities that alters both the volume and value of trade flows,
 there is still disagreement among economists concerning the nature of this
 relationship. In this article, we follow a rather unique approach by
 estimating the density functions of the observed trade flows and the
 density functions of trade flows generated by tariff removal using an
 intertemporal global Computable General Equilibrium (CGE) model. Our
 inquiry is whether or not the trade flows generated by global tariff
 elimination impact economies in the long-run and alter their historical
 underlying distributions. If the latter case prevails, it implies that the
 economies follow a different transitional path into a new steady-state
 equilibrium. The density functions, estimated parameters and higher
 moments of the observed trade flow distributions are distinctly different
 from the parameter estimates of the trade flows generated by the model. In
 this sense, trade-inducing economic activity as generated by tariff
 removal and captured by the neoclassical specification of the model is
 associated with trade flows along a different transitional path from the
 observed trade flows. 
Journal: Applied Economics 
Pages: 3263-3277 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.703312 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703312 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3263-3277




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Ali   M. Kutan 
Author-X-Name-First: Ali   M. 
Author-X-Name-Last: Kutan 
Author-Name: Dan Xi 
Author-X-Name-First: Dan 
Author-X-Name-Last: Xi 
Title: The impact of economic and monetary uncertainty on the demand for money in emerging economies 
Abstract:
  By introducing uncertainty, monetary volatility and economic volatility
 are said to make the public cautious, hence increase their cash holdings
 or their demand for money. On the other hand, because of monetary and
 economic uncertainty if the public seek safer assets than money, they may
 hold less cash. In the absence of any paper testing for the impact of
 economic and monetary uncertainty on the demand for money in emerging
 economies, this article fills the gap by considering the experiences of
 six Central and Eastern European emerging economies and four other
 emerging economies. We found that the impact is transitory in most
 countries. Moreover, money demand is found correctly specified and stable
 in most countries, suggesting that policy based on monetary targeting
 could still be effective despite significant output and monetary
 uncertainty. 
Journal: Applied Economics 
Pages: 3278-3287 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.705430 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.705430 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3278-3287




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Apergis 
Title: The domestic Balassa--Samuelson effect of inflation for the Greek economy 
Abstract:
  The goal of this study is to assess whether and to what extent inflation
 differentials between the tradable and nontradable sectors in the Greek
 economy are due to the domestic version of the Balassa--Samuelson (BS)
 effect and, therefore, the &#x2018;expensiveness&#x2019; of the country
 and its huge deficit of international competitiveness. Using data over the
 period 1989 to 2009 from the Greek economy, the empirical results indicate
 that the domestic BS effect is present for the case of Greece and seems to
 explain about 33% of the overall inflation rate. 
Journal: Applied Economics 
Pages: 3288-3294 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.707774 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707774 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3288-3294




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos   A. Carrasco 
Author-X-Name-First: Carlos   A. 
Author-X-Name-Last: Carrasco 
Author-Name: Jesus Ferreiro 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Ferreiro 
Title: Inflation targeting and inflation expectations in Mexico 
Abstract:
  In this article we analyse inflation expectations in Mexico. After a
 review of the theoretical and empirical literature, we apply unit root,
 normality and cointegration tests to the data provided by Banco de M鸩co
 (Banxico) in the Survey on the Expectations of the Private Sector
 Economics Specialists. Our results reject the null hypothesis of normality
 for inflation expectations over the period 2004:01--2011:12. The exchange
 rate has become one of the most relevant variables in the transmission
 mechanism of monetary policy in a small open economy. In this regard, we
 show the existence of a long-run relationship between nominal exchange
 rate and interest rate where inflation expectations matter for long-term
 dynamics. 
Journal: Applied Economics 
Pages: 3295-3304 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.707772 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707772 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3295-3304




Template-Type: ReDIF-Article 1.0
Author-Name: W. A. Razzak 
Author-X-Name-First: W. A. 
Author-X-Name-Last: Razzak 
Title: Predicting instability 
Abstract:
  Unanticipated shocks could lead to instability, which is reflected in
 statistically significant changes in distributions of random variables.
 Changes in the conditional moments of stationary variables are
 predictable. We provide a framework based on a statistic for the
 <italic>sample generalized variance</italic>, which is useful for
 interrogating real time data and for predicting statistically significant
 sudden and large shifts in the conditional variance of a vector of
 correlated macroeconomic and financial variables. It is a test for a
 market-wide instability. Central banks can incorporate the framework in
 the policymaking process. 
Journal: Applied Economics 
Pages: 3305-3315 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.707775 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707775 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3305-3315




Template-Type: ReDIF-Article 1.0
Author-Name: Jiung-Bin Chin 
Author-X-Name-First: Jiung-Bin 
Author-X-Name-Last: Chin 
Author-Name: Mu-Chen Wu 
Author-X-Name-First: Mu-Chen 
Author-X-Name-Last: Wu 
Author-Name: Ling-Feng Hsieh 
Author-X-Name-First: Ling-Feng 
Author-X-Name-Last: Hsieh 
Title: Strategic planning of optimal resource allocation in response to global financial crisis -- a study of international tourist hotels 
Abstract:
  This study is principally designed to examine the changes in the
 efficiency, effective resource allocation and future operation strategies
 of Taiwan's international tourist hotel in global economic downturn. At
 first, we set up critical input and output factors and construct an
 assessment model using Data Envelopment Analysis (DEA) for analysis of
 relative efficiency. Further, we apply an allocative efficiency model for
 additional considerations of each input cost and analyse proper and
 effective resource allocation. Finally, there are significant changes in
 overall efficiency of international tourist hotels under global financial
 crisis. We can also reach an effective allocation of the overall
 resources. In such cases, lowering cost has become a key issue for
 sustainable operation of international tourist hotel. Finally, the
 greatest contribution of this study is to further classify the
 competitiveness and optimal cost allocation of Taiwan's international
 tourist hotels into seven categories based on the study results and
 propose strategic planning of future operations for hotel
 administrators&#x2019; reference in making improvements in the future. 
Journal: Applied Economics 
Pages: 3316-3328 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.705427 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.705427 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3316-3328




Template-Type: ReDIF-Article 1.0
Author-Name: Marlon   P. Mundt 
Author-X-Name-First: Marlon   P. 
Author-X-Name-Last: Mundt 
Author-Name: Michael   T. French 
Author-X-Name-First: Michael   T. 
Author-X-Name-Last: French 
Title: Adolescent alcohol use, sociability and income as a young adult 
Abstract:
  We use data from the National Longitudinal Survey of Adolescent Health
 (Add Health) to study how sociability and adolescent alcohol use impact
 personal income as a young adult. We find that factors which enhance not
 only individual sociability but also social interaction at the community
 level are positively linked to future earnings of adolescents. Adolescents
 whose friends and friends of friends have greater sociability reap
 long-term labour market rewards into adulthood. After adjusting for
 individual and community sociability, the effect of teenage alcohol
 consumption on labour market earnings as young adults is reduced. Our
 results suggest that earnings premiums associated with adolescent alcohol
 consumption may be partially explained by social network dynamics. 
Journal: Applied Economics 
Pages: 3329-3339 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.707773 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707773 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3329-3339




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Title: Why is it so difficult to outperform the random walk in exchange rate forecasting? 
Abstract:
  A simulation exercise is used to demonstrate the difficulty to outperform
 the random walk in exchange rate forecasting if forecasting accuracy is
 judged by the Root Mean Square Error (RMSE) or similar criteria that
 depend on the magnitude of the forecasting error. It is shown that, as the
 exchange rate volatility rises, the RMSE of the model rises faster than
 that of the random walk. While the literature considers this finding to be
 a puzzle that casts a big shadow of doubt on the soundness of
 international monetary economics, the results show that failure to
 outperform the random walk, in both in-sample and out-of-sample
 forecasting, should be the rule rather than the exception. However, the
 results do not imply that the random walk is unbeatable, because it can be
 easily outperformed if forecasting accuracy is judged according to
 criteria such as direction accuracy and profitability. 
Journal: Applied Economics 
Pages: 3340-3346 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.709605 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.709605 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3340-3346




Template-Type: ReDIF-Article 1.0
Author-Name: John Lewis 
Author-X-Name-First: John 
Author-X-Name-Last: Lewis 
Title: Fiscal policy in Central and Eastern Europe with real time data: cyclicality, inertia and the role of EU accession 
Abstract:
  This article evaluates the cyclicality, inertia and effect of EU
 accession on fiscal policy in Central and Eastern Europe (CEE) using a
 real time dataset. Budget balances are found to react in a stabilizing way
 to economic activity -- every extra percentage point of economic growth is
 associated with an improvement in the budget balance of 0.3 percentage
 points of Gross Domestic Product (GDP) -- and there is no evidence of an
 asymmetric reaction to the cycle. Balances are much less inert than is
 typically found in Western Europe. However, there is clear evidence of a
 fiscal loosening in the run-up to EU accession. This began in 1999 in
 larger central European countries, often identified as
 &#x2018;front-runners&#x2019;. The other seven began loosening in 2001,
 after the Nice Treaty was agreed. For both sets of countries, this
 loosening cumulatively amounts to some 3% of GDP. 
Journal: Applied Economics 
Pages: 3347-3359 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.705428 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.705428 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3347-3359




Template-Type: ReDIF-Article 1.0
Author-Name: Yuqing Zheng 
Author-X-Name-First: Yuqing 
Author-X-Name-Last: Zheng 
Author-Name: Harry Kaiser 
Author-X-Name-First: Harry 
Author-X-Name-Last: Kaiser 
Title: Optimal quality threshold of admission in a two-sided farmers&#x2019; market 
Abstract:
  We develop a two-sided model for a farmers&#x2019; market where farmers
 value the number of consumers, and consumers value the number of farmers
 and the average product quality in the market. Consumer preference over
 product quality provides an incentive for the farmers&#x2019; market to
 exclude farmers of the lowest product quality. Using the model, we
 identify what factors the farmers&#x2019; market has to consider in
 determining the optimal quality threshold of admission, an issue that has
 not received any formal study. Those factors include the network effects
 between farmers and consumers, consumer preference over product quality
 and variety, and the quality spread among farmers. We also outline an
 empirical estimation strategy in order to make use of the model developed
 in this study. 
Journal: Applied Economics 
Pages: 3360-3369 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.711941 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.711941 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3360-3369




Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli 
Author-X-Name-First: Faruk 
Author-X-Name-Last: Balli 
Author-Name: Hatice   Ozer Balli 
Author-X-Name-First: Hatice   Ozer 
Author-X-Name-Last: Balli 
Title: On the empirics of risk-sharing across MENA countries 
Abstract:
  In this article, we compute the potential welfare gains and the realized
 gains from risk-sharing among Middle East and North African (MENA)
 countries, including the oil-rich Gulf region and the resource-scarce
 economies. We find that the overall potential welfare gains across MENA
 countries are positive for all countries under the assumption of full
 risk-sharing. The potential welfare gains among the six Gulf Cooperation
 Council (GCC) countries are positive even though the magnitudes are
 smaller compared to those of the rest of the MENA region. We also quantify
 the extent of risk-sharing for the MENA region and show that it is
 significant for the MENA region and its subgroups; however, we could not
 find any sign of inter-temporal smoothing across the same groups.
 Decomposing the aggregate output shocks shows that the extent of
 risk-sharing is significant when only positive output shocks exist across
 the resource-scarce MENA economies. However, we observe that GCC countries
 share output risks with each other even under negative output shocks. 
Journal: Applied Economics 
Pages: 3370-3377 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.687099 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687099 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3370-3377




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Title:  <italic>Ad valorem</italic> tariff and spatial equilibrium models 
Abstract:
  The objectives of this article are to illustrate theoretically and
 empirically how to incorporate an <italic>ad valorem</italic> tariff in
 spatial equilibrium models and show the equivalence of three approaches
 (primal, dual and MCP) of spatial equilibrium trade modelling. The article
 lays out in detail the theory, empirical applications and the results for
 all three approaches so that trade modellers can easily follow and apply
 them in their work. The primal approach is commonly used by spatial
 equilibrium modellers, though the dual approach corresponds to the
 textbook depiction of consumer surplus, producer surplus and gains from
 trade. The Mixed Complementarity Problem (MCP) is not commonly used by
 spatial equilibrium modellers, though it is relatively simpler if the
 modeller knows the equilibrium conditions. This article also presents
 advantages and disadvantages of each approach. 
Journal: Applied Economics 
Pages: 3378-3386 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.711943 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.711943 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3378-3386




Template-Type: ReDIF-Article 1.0
Author-Name: &#xC5;sa   Marie Hansson 
Author-X-Name-First: &#xC5;sa   Marie 
Author-X-Name-Last: Hansson 
Author-Name: Karin Olofsdotter 
Author-X-Name-First: Karin 
Author-X-Name-Last: Olofsdotter 
Title: FDI, Taxes and Agglomeration Economies in the EU15 
Journal: Applied Economics 
Pages: 3387-3387 
Issue: 23 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.707007 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707007 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3387-3387




Template-Type: ReDIF-Article 1.0
Author-Name: Jaap   E. Wieringa 
Author-X-Name-First: Jaap   E. 
Author-X-Name-Last: Wieringa 
Author-Name: Peter   S. H. Leeflang 
Author-X-Name-First: Peter   S. H. 
Author-X-Name-Last: Leeflang 
Title: Modelling the effects of promotion expenditures on sales of pharmaceuticals 
Abstract:
  The successful innovation of pharmaceuticals requires a substantial
 amount of marketing support, despite concerns about the effects of these
 marketing efforts. This study considers prior findings that indicate that
 higher marketing expenditures for a brand reduce its price elasticity of
 demand, which may lead to higher prices, in the context of the Dutch
 pharmaceutical market. The authors find that parameters are heterogeneous
 across brands, and that marketing effects differ across product life cycle
 stages. They propose a separate analysis of established and new brands.
 For established brands, marketing efforts neither have a positive effect
 on sales, nor do they affect the price elasticity. For new brands, several
 proposed models might capture their diffusion pattern; the
 diffusion-of-innovation models provide the best results. Marketing
 accelerates the rate of diffusion and leads to a higher baseline level of
 sales. 
Journal: Applied Economics 
Pages: 3389-3399 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.711940 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.711940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3389-3399




Template-Type: ReDIF-Article 1.0
Author-Name: Shelagh   A. Heffernan 
Author-X-Name-First: Shelagh   A. 
Author-X-Name-Last: Heffernan 
Author-Name: Xiaolan Fu 
Author-X-Name-First: Xiaolan 
Author-X-Name-Last: Fu 
Author-Name: Xiaoqing (Maggie) Fu 
Author-X-Name-First: Xiaoqing (Maggie) 
Author-X-Name-Last: Fu 
Title: Financial innovation in the UK 
Abstract:
  This study employs a national survey of over 1100 British financial firms
 to ascertain the determinants of financial innovation and their sales
 success using the logit and the generalized Tobit models. We find that the
 likelihood of financial innovation rises with the size of financial firms,
 employee education, greater expenditure on research and development, the
 availability of finance and the extent to which firms cooperate with each
 other. Perceptions of economic risk and innovation costs are also
 influential. R&D, cooperation and human capital are the main variables
 driving the success of financial innovation, measured by the percentage
 share of innovations sold. Firms in London/the south have a significantly
 greater tendency to innovate, though Scotland also does well. Stock
 broking, fund management and related activities are more innovative than
 firms in the financial intermediation and pension/insurance sectors. 
Journal: Applied Economics 
Pages: 3400-3411 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.711942 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.711942 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3400-3411




Template-Type: ReDIF-Article 1.0
Author-Name: M. E. Arouri 
Author-X-Name-First: M. E. 
Author-X-Name-Last: Arouri 
Author-Name: H. Ben Ameur 
Author-X-Name-First: H. 
Author-X-Name-Last: Ben Ameur 
Author-Name: N. Jawadi 
Author-X-Name-First: N. 
Author-X-Name-Last: Jawadi 
Author-Name: F. Jawadi 
Author-X-Name-First: F. 
Author-X-Name-Last: Jawadi 
Author-Name: W. Louhichi 
Author-X-Name-First: W. 
Author-X-Name-Last: Louhichi 
Title: Are Islamic finance innovations enough for investors to escape from a financial downturn? Further evidence from portfolio simulations 
Abstract:
  Does Islamic finance constitute a promising solution for the current
 global financial crisis and are Islamic financial innovations enough to
 reassure investors, stabilize financial systems and provide them with a
 means of escaping from financial downturns? This article addresses these
 questions while investigating the dynamics of Islamic and conventional
 stock prices over the last few years. In particular, we apply Multivariate
 Vector Autoregressive (VAR) tools to test the interaction between
 conventional and Islamic financial products, and implement the Granger
 causality test to specify the dependence orientation of feedback between
 Islamic and conventional stock prices. Our article differs from previous
 work on the topic in that it develops portfolio simulations to determine
 whether Islamic finance can supplant conventional finance by generating
 investment and diversification opportunities during periods of crisis. In
 addition, we develop optimal portfolio strategies and investment
 proportions for conventional and Islamic funds to ensure the best resource
 allocation. Our main findings are: (i) the impact of the current crisis on
 the Islamic finance industry is less marked than on conventional finance,
 (ii) investment in Islamic products generates high returns, (iii)
 portfolios that include Islamic products reduce systemic risk and generate
 significant diversification benefits, (iv) the US crisis has led to
 significant changes in resource allocation through changes in investment
 choices. 
Journal: Applied Economics 
Pages: 3412-3420 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.707776 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707776 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3412-3420




Template-Type: ReDIF-Article 1.0
Author-Name: Houdou Basse Mama 
Author-X-Name-First: Houdou 
Author-X-Name-Last: Basse Mama 
Author-Name: Alexander Bassen 
Author-X-Name-First: Alexander 
Author-X-Name-Last: Bassen 
Title: Contagion effects in the electric utility industry following the Fukushima nuclear accident 
Abstract:
  This article examines intra-industry information transfers in the
 European and Japanese electric industry in the wake of the Fukushima
 nuclear accident. For European conventional utilities, the downward price
 drift is relatively small and transient in nature. Yet, we find positive
 and lingering effects of the accident on the shares of alternative
 electric utilities. Japanese utilities were hit the hardest and the shock
 seems to be long-lasting. An interesting finding of this article is the
 abrupt increase (decrease) in the systematic risk of conventional
 (alternative) electric utilities following the event. In Europe, we could
 only document a decrease in the idiosyncratic risk of conventional
 utilities, pointing to enhanced return synchronicity in the conventional
 power industry. In turn, total risk seems to be stationary around the
 accident. In rebuttal, idiosyncratic and systematic risks (and
 consequently total risk) have substantially risen in Japan since the
 event. Finally, intercept values related to European utilities remained
 stable around the accident while Japanese utilities incurred a substantial
 decline in their daily average returns as captured by alpha shifts. 
Journal: Applied Economics 
Pages: 3421-3430 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.714072 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.714072 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3421-3430




Template-Type: ReDIF-Article 1.0
Author-Name: Tae-Jeong Kim 
Author-X-Name-First: Tae-Jeong 
Author-X-Name-Last: Kim 
Author-Name: Geoffrey   J. D. Hewings 
Author-X-Name-First: Geoffrey   J. D. 
Author-X-Name-Last: Hewings 
Title: Inter-regional endogenous growth under the impacts of demographic changes 
Abstract:
  This article attempts to project the economic paths for the individual
 Midwest states (Illinois, Indiana, Michigan, Ohio and Wisconsin, as well
 as the rest of the US) in the near future when the population ageing
 becomes more pronounced. To accomplish this task, a dynamic general
 equilibrium model is developed so that it could incorporate the
 inter-regional transactions and endogenous growth mechanisms within the
 framework of an Overlapping Generations (OLG) model. Key parameter values
 associated with the regional interconnections were assigned using a
 multi-regional Social Accounting Matrix (SAM) of the Midwest states. Two
 different steady-state results were presented with two different
 age-cohort population structures corresponding to year 2007 and 2030.
 These steady-state results imply that the rate of declining of per-capita
 output is projected to be heterogeneous across the regions due to
 different developments of age-cohort population structures and
 consequently different levels of endogenously determined educational
 investment of workers. Also, two steady-state simulation results revealed
 that the development of output price in a certain region reflects the
 dynamics of demographics of every region. Meanwhile, the dynamic
 simulation results reveal that the per-capita output of every region is
 projected to grow positively in the near future when the population ageing
 will be pronounced. However, the growth rate of the per-capita output is
 projected to be heterogeneous across the regions: the regions with
 high-skilled workers hold the potential threat that population ageing
 could give more negative impacts on the economy due to the relatively
 sluggish growth of human capital stock. Also, the dynamic simulation
 results show that certain regions in the Midwest will experience their
 terms of trade deterioration in the near future, implying that careful
 attention should be given to their future trade conditions. 
Journal: Applied Economics 
Pages: 3431-3449 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.709603 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.709603 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3431-3449




Template-Type: ReDIF-Article 1.0
Author-Name: Kui-Wai Li 
Author-X-Name-First: Kui-Wai 
Author-X-Name-Last: Li 
Title: The US monetary performance prior to the 2008 crisis 
Abstract:
  This article uses a Structural Vector Autoregressive (SVAR) approach to
 study the different shocks to the monetary performance in the two decades
 of the US economy prior to the 2008 financial crisis. By using the Federal
 Fund Rate as a measure of change in the monetary policy, this study shows
 that interest rate expectation is informative about the future movement of
 Federal Fund Rate and the anticipated monetary policy should be one of the
 crucial reasons in causing monetary and financial deterioration in the US
 economy. This article discusses a possible conjecture of a low interest
 rate trap when a persistent and prolonged low interest rate regime led to
 financial instability. 
Journal: Applied Economics 
Pages: 3450-3461 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.714071 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.714071 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3450-3461




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev   K. Goel 
Author-X-Name-First: Rajeev   K. 
Author-X-Name-Last: Goel 
Author-Name: Rati Ram 
Author-X-Name-First: Rati 
Author-X-Name-Last: Ram 
Title: Economic uncertainty and corruption: evidence from a large cross-country data set 
Abstract:
  A vast amount of research has considered numerous causes and correlates
 of corruption. Also, there have been many studies of the consequences of
 various forms of uncertainty. However, exploration of the nexus between
 economic uncertainty and corruption appears scarce. After providing an
 intuitive and heuristic linkage between general economic uncertainty and
 corruption, this article uses a large cross-country data set to augment a
 fairly standard model with simple proxies for uncertainty and to
 investigate how economic uncertainty might affect the prevalence of
 corruption. In addition, a quantile-regression framework is used to judge
 how the strength of various covariates may differ with the level of
 corruption. Seven main points emerge from the estimates. First, economic
 uncertainty is associated positively with corruption, and the relation
 seems to be robust across measures of uncertainty and corruption. Second,
 quantile-regression estimates indicate considerable parametric
 heterogeneity across the distribution of corruption. Third, Gross Domestic
 Product (GDP) per capita has the expected corruption-mitigating role.
 Fourth, increased political rights and civil liberties also appear to
 lower corruption. Fifth, greater government consumption is associated with
 lower corruption. Sixth, while the hyperinflation dummy lacks significance
 in most OLS regressions, its significance varies across the distribution
 of corruption. Seventh, neither police force nor government subsidies
 shows significance, but transition economies have more corruption. 
Journal: Applied Economics 
Pages: 3462-3468 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.714073 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.714073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3462-3468




Template-Type: ReDIF-Article 1.0
Author-Name: Philip   Hans Franses 
Author-X-Name-First: Philip   Hans 
Author-X-Name-Last: Franses 
Author-Name: Heleen Mees 
Author-X-Name-First: Heleen 
Author-X-Name-Last: Mees 
Title: Approximating the DGP of China's quarterly GDP 
Abstract:
  We demonstrate that the Data Generating Process (DGP) of China's
 cumulated quarterly Gross Domestic Product (GDP, current prices), as it is
 reported by the National Bureau of Statistics of China (NBSC), can be
 (very closely) approximated by a simple rule. This rule says that the
 annual growth in any quarter is equal to the annual growth in its previous
 quarter plus an error term that is only nonzero in the first quarter of
 each year and with small variance. We show that this rule fits the data
 well for the period 1992Q1--2005Q4 for total GDP. It also gives accurate
 forecasts for 2006Q1--2009Q4. 
Journal: Applied Economics 
Pages: 3469-3472 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.709604 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.709604 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3469-3472




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Cellini 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Cellini 
Author-Name: Tiziana Cuccia 
Author-X-Name-First: Tiziana 
Author-X-Name-Last: Cuccia 
Title: Museum and monument attendance and tourism flow: a time series analysis approach 
Abstract:
  This article takes a time-series analysis approach to evaluate the
 directions of causality between tourism flows, on the one side, and museum
 and monument attendance, on the other. We consider Italy as a case study,
 and analyse monthly data over the period January 1996 to December 2010.
 All the considered series are seasonally integrated, and co-integration
 links emerge. We focus on the error-correction mechanism among
 co-integrated time series to detect the directional link(s) of causality.
 Clear-cut results emerge: bi-directional causality exists in the long-run
 dynamics, but it is the long-run dynamics of visits to museums and
 monuments that mainly adjust to tourism variables (arrivals, overnights,
 average stays). In the short run, there are some causal effects going from
 the cultural sites&#x2019; attendance to tourism dynamics. The
 nonstationary nature of time series, their co-integration relationships
 and the direction of causal links suggest specific implications for
 tourism and cultural policies. 
Journal: Applied Economics 
Pages: 3473-3482 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.716150 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.716150 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3473-3482




Template-Type: ReDIF-Article 1.0
Author-Name: Antoine Bonleu 
Author-X-Name-First: Antoine 
Author-X-Name-Last: Bonleu 
Author-Name: Gilbert Cette 
Author-X-Name-First: Gilbert 
Author-X-Name-Last: Cette 
Author-Name: Guillaume Horny 
Author-X-Name-First: Guillaume 
Author-X-Name-Last: Horny 
Title: Capital utilization and retirement 
Abstract:
  This empirical analysis assesses the determinants of firms&#x2019;
 capital retirement. Particular attention is paid to the impact of the
 business cycle and the capital usage intensity. Compared to previous
 studies, we directly control for the capital utilization and disentangle
 the short-run mechanisms from the long-run ones. The analysis is carried
 out with an original and large firm-level dataset. The main results of the
 analysis may be summarized as follows: (i) the retirement rate increases
 during slowdowns and decreases during booms. This corresponds to a
 countercyclical capital retirement; (ii) the capital retirement rate
 increases with the capital usage intensity in the long run. This
 corresponds to a wear and tear effect, which is small compared to the
 countercyclical one; (iii) the capital retirement rate increases with the
 average age of capital; (iv) the profit rate and the wage cost per capita
 do not have a significant impact on the retirement rate. 
Journal: Applied Economics 
Pages: 3483-3494 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.720013 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.720013 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3483-3494




Template-Type: ReDIF-Article 1.0
Author-Name: Pui   Sun Tam 
Author-X-Name-First: Pui   Sun 
Author-X-Name-Last: Tam 
Title: Finite-sample distribution of the augmented Dickey--Fuller test with lag optimization 
Abstract:
  This article presents a response surface analysis for the distribution of
 the augmented Dickey--Fuller (ADF) test with optimized lag order in the
 autoregression using frequently applied data-dependent methods. Simulation
 results demonstrate that finite-sample distribution of the test depends
 critically on the lag-order determination rule. The univariate test and
 its panel counterparts exhibit size distortion when the lag order in the
 autoregression is optimized but inappropriate distribution is employed in
 test implementation. Response surface coefficients reported for the
 finite-sample distribution of the test with lag optimization are therefore
 useful tools for practitioners in applied research. The simulation
 evidence and practical use of the response surface coefficients are
 substantiated with empirical illustrations. 
Journal: Applied Economics 
Pages: 3495-3511 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.724159 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.724159 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3495-3511




Template-Type: ReDIF-Article 1.0
Author-Name: Sungju Chun 
Author-X-Name-First: Sungju 
Author-X-Name-Last: Chun 
Author-Name: Pierre Perron 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Perron 
Title: Comparisons of robust tests for shifts in trend with an application to trend deviations of real exchange rates in the long run 
Abstract:
  We study the finite sample properties of tests for structural changes in
 the trend function of a time series that do not require knowledge of the
 degree of persistence in the noise component. The tests of interest are
 the quasi-Feasible Generalized Least Squares (FGLS) procedure by Perron
 and Yabu (2009b) and the weighted average of the regression
 <italic>t</italic>-statistics by Harvey <italic>et al</italic>. (2009),
 both of which have the same limit distribution whether the noise component
 is stationary or has a unit-root. We analyse the finite sample size and
 power properties of these tests under a variety of Data-Generating
 Processes (DGPs). The results show that the Perron--Yabu test has greater
 power overall. With respect to the size, the Harvey--Leybourne--Taylor
 test exhibits larger size distortions unless a moving-average component is
 present. Using the Perron and Yabu procedure to test for structural
 changes in the trend function of long-run real exchange rates with respect
 to the US dollar indicates that for 17 out of 19 countries, the series
 have experienced a shift in trend since the late nineteenth century. 
Journal: Applied Economics 
Pages: 3512-3528 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.724160 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.724160 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3512-3528




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno De Borger 
Author-X-Name-First: Bruno De 
Author-X-Name-Last: Borger 
Author-Name: Kristiaan Kerstens 
Author-X-Name-First: Kristiaan 
Author-X-Name-Last: Kerstens 
Author-Name: Diego Prior 
Author-X-Name-First: Diego 
Author-X-Name-Last: Prior 
Author-Name: Ignace Van de Woestyne 
Author-X-Name-First: Ignace Van de 
Author-X-Name-Last: Woestyne 
Title: Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions 
Journal: Applied Economics 
Pages: 3529-3529 
Issue: 24 
Volume: 45 
Year: 2013 
Month: 8 
X-DOI: 10.1080/00036846.2012.712786 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.712786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3529-3529




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Deininger 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Deininger 
Author-Name: Daniel   Ayalew Ali 
Author-X-Name-First: Daniel   Ayalew 
Author-X-Name-Last: Ali 
Author-Name: Tekie Alemu 
Author-X-Name-First: Tekie 
Author-X-Name-Last: Alemu 
Title: Productivity effects of land rental market operation in Ethiopia: evidence from a matched tenant--landlord sample 
Abstract:
  As countries increasingly strive to transform their economies from
 agriculture&#x2010;based into a diversified one, land rental will become
 of greater importance. It will thus be critical to complement research on
 the efficiency of specific land rental arrangements such as sharecropping
 with an inquiry into the broader productivity impacts of the land rental
 market. Plot&#x2010;level data for a matched landlord--tenant sample in an
 environment where sharecropping dominates allow us to explore both issues.
 We find that pure output sharing leads to significantly lower levels of
 efficiency that can be attenuated by monitoring while the inefficiency
 disappears if inputs are shared as well. Rentals transfer land to more
 productive producers but realization of this productivity advantage is
 prevented by the inefficiency of contractual arrangements, suggesting
 changes that would prompt adoption of different contractual arrangements
 could have significant benefits. 
Journal: Applied Economics 
Pages: 3531-3551 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.725933 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725933 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3531-3551




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti 
Author-X-Name-First: Leonardo 
Author-X-Name-Last: Becchetti 
Author-Name: Stefano Castriota 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Castriota 
Author-Name: Melania Michetti 
Author-X-Name-First: Melania 
Author-X-Name-Last: Michetti 
Title: The effect of fair trade affiliation on child schooling: evidence from a sample of Chilean honey producers 
Abstract:
  We evaluate the impact of Fair Trade (FT) affiliation on child schooling
 within a sample of Chilean honey producers with a retrospective panel data
 approach. From a theoretical point of view, we argue that FT should have a
 positive effect on child schooling since it generates a short-run pure
 income effect together with a medium-run productivity effect on both adult
 and child wages. On the other hand, because of the higher productivity
 generated by the medium-run effect, the opportunity cost of child
 education increases if they work with their parents. The direction of the
 impact of FT affiliation on child schooling is therefore uncertain and
 requires empirical testing. Our econometric findings document a positive
 and significant impact of affiliation years on child schooling after
 controlling for endogeneity and heterogeneity between the treatment and
 control sample. 
Journal: Applied Economics 
Pages: 3552-3563 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.727980 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727980 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3552-3563




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin   R. Auer 
Author-X-Name-First: Benjamin   R. 
Author-X-Name-Last: Auer 
Title: Can consumption-based asset pricing models using monetary conditioning variables explain the cross-section of German stock returns? 
Abstract:
  In this article, we analyse whether simple Consumption-based Capital
 Asset Pricing Models (CCAPMs) using monetary conditioning information
 (growth of the money aggregates M1, M2 and M3) can explain the
 cross-section of German size, book-to-market and industry portfolio
 returns. Our results show that models having stochastic discount factor
 parameters that vary with money aggregates can reduce the pricing errors
 of models with constant parameters. However, a large proportion of the
 cross-sectional variation remains unexplained. 
Journal: Applied Economics 
Pages: 3564-3573 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.725935 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725935 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3564-3573




Template-Type: ReDIF-Article 1.0
Author-Name: Oludele   Akinloye Akinboade 
Author-X-Name-First: Oludele   Akinloye 
Author-X-Name-Last: Akinboade 
Author-Name: Emilie   Chanceline Kinfack 
Author-X-Name-First: Emilie   Chanceline 
Author-X-Name-Last: Kinfack 
Title: Interest rate reforms, financial deepening and economic growth in Cameroon: an empirical investigation 
Abstract:
  The impact of interest rate reforms on financial deepening and growth in
 Cameroon is examined. We employ five proxies of financial deepening
 against deposit rate, a proxy for interest rate reforms. The impact of
 interest rate reforms on financial deepening is sensitive to the proxy
 used for financial deepening. The impact is almost negative and
 significant for all the indicators, except for the ratio of broad money to
 Gross Domestic Product, where it is positive and significant in the first
 lag. This means that financial repression helps improve broad money and
 hinders the development of the other indicators of financial development
 in Cameroon. 
Journal: Applied Economics 
Pages: 3574-3586 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2011.566200 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566200 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3574-3586




Template-Type: ReDIF-Article 1.0
Author-Name: Tidiane Kinda 
Author-X-Name-First: Tidiane 
Author-X-Name-Last: Kinda 
Title: Beyond natural resources: horizontal and vertical FDI diversification in Sub-Saharan Africa 
Abstract:
  This article uses firm-level data to analyse the drivers of Foreign
 Direct Investment (FDI) to the manufacturing and services sectors of 30
 Sub-Saharan African countries. It shows that improving the investment
 climate helps to attract aggregate FDI. By analysing disaggregate FDI
 data, the article establishes that there is considerable contrast in
 behaviour between vertical FDI (foreign firms producing for export) and
 horizontal FDI (foreign firms producing for local markets). In particular,
 the latter firms are attracted to areas with higher trade regulations,
 highlighting their interest in protected markets. Furthermore, horizontal
 FDI is more affected by financing and human capital constraints and less
 affected by infrastructure and institutional constraints than vertical FDI
 is. 
Journal: Applied Economics 
Pages: 3587-3598 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.678982 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.678982 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3587-3598




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Sutton 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Sutton 
Title: On the determinants of UK unemployment and the Great Recession: analysing the gross flows data 
Abstract:
  This article provides a detailed analysis of the gross worker flows data
 in the United Kingdom between 1997 and 2010, with particular emphasis on
 the 2008/2009 recession and its aftermath. Utilizing flows data from the
 Labour Force Survey (LFS), the dominant macroeconomic factors driving
 unemployment in the United Kingdom before, during and after the
 recessionary period are identified. Amongst the salient findings of this
 article is a striking decline in job-to-job movements throughout and
 beyond the recent recession. This discovery adds a new dimension to the
 existing literature in this field. 
Journal: Applied Economics 
Pages: 3599-3616 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.725934 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725934 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3599-3616




Template-Type: ReDIF-Article 1.0
Author-Name: H. C. Huang 
Author-X-Name-First: H. C. 
Author-X-Name-Last: Huang 
Author-Name: P. S. Tung 
Author-X-Name-First: P. S. 
Author-X-Name-Last: Tung 
Title: Does option provide more informative content than stock after regulation fair disclosure? 
Abstract:
  This article examines the impact of Regulation Fair Disclosure (Reg FD),
 which intends to eliminate selective disclosure to only a few privileged
 interested parties, on the information embedded in the stock-and-option
 markets prior to tender offer announcements. In the pre-announcement
 period after Reg FD, the volume of public option information contains less
 information about subsequent stock price movements. Although the quantity
 of public information may be higher after Reg FD, the inferior quality of
 publicly available option information dominates the higher quantity. Thus,
 the predictive power of option information decreases. In the post-RFD
 pre-announcement period, the volume of public option information is more
 informative than the volume of stock private information. It indicates
 that although the quality of private stock information is superior to that
 of public option information, the much lower quantity of stock information
 results in a lower predictive power of private stock information than that
 of public option information. 
Journal: Applied Economics 
Pages: 3617-3624 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.725936 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725936 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3617-3624




Template-Type: ReDIF-Article 1.0
Author-Name: Keith   A. Bender 
Author-X-Name-First: Keith   A. 
Author-X-Name-Last: Bender 
Author-Name: Rebecca   M. Neumann 
Author-X-Name-First: Rebecca   M. 
Author-X-Name-Last: Neumann 
Author-Name: John   Douglas Sk&#xE5;tun 
Author-X-Name-First: John   Douglas 
Author-X-Name-Last: Sk&#xE5;tun 
Title: Real and perceived losses from unemployment: a cross-country study 
Abstract:
  This article compares the Unemployment Rate (UR) as a measure of
 inefficiency with several other potential measures across 18 Organization
 for Economic Co-operation and Development (OECD) countries. Results show
 that the UR is not a very good measure of relative inefficiency between
 countries, it overestimates the number of individuals who would get jobs
 if the market is clear, the Dead Weight Losses (DWLs) of UR are remarkably
 low even in high unemployment countries and the aggregate perceived
 monetary losses by the unemployed as a proportion of Gross Domestic
 Product (GDP) are also uniformly low, although inframarginal individuals
 in some countries may perceive their losses to be high. 
Journal: Applied Economics 
Pages: 3625-3636 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.727977 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727977 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3625-3636




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Lederman 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Lederman 
Author-Name: Taye Mengistae 
Author-X-Name-First: Taye 
Author-X-Name-Last: Mengistae 
Author-Name: Lixin   Colin Xu 
Author-X-Name-First: Lixin   Colin 
Author-X-Name-Last: Xu 
Title: Microeconomic consequences and macroeconomic causes of foreign direct investment in southern African economies 
Abstract:
  The authors use a new data set on firms in 13 countries of the Southern
 African Development Community (SADC) and comparators from other regions to
 identify the benefits and determinants of FDI in this region. Foreign
 Direct Investment (FDI) has facilitated local development in the SADC.
 Foreign-owned firms perform better than domestic firms, are larger, and
 locate in richer and better-governed countries and in countries with more
 competitive financial intermediaries. They are also more likely to export
 than domestic firms and evidence suggests that they might have positive
 spillover effects on domestic firms. Based on a standard empirical model,
 the SADC is attracting the inward FDI per capita that the region's level
 of income would predict. But this means that there are less capital
 inflows per capita to the region than there are to wealthier parts of the
 developing world. Moreover, the SADC is attracting less FDI than
 comparators for reasons that are possibly more fundamental than current
 income, namely, countries&#x2019; past growth record, demographic
 structure and the quality of physical infrastructure. Interestingly,
 inward FDI is less sensitive to variation in income within the SADC than
 in other parts of the world, but is more responsive to changes in
 country's openness to trade. 
Journal: Applied Economics 
Pages: 3637-3649 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.727978 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727978 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3637-3649




Template-Type: ReDIF-Article 1.0
Author-Name: Nicole   M. Aulerich 
Author-X-Name-First: Nicole   M. 
Author-X-Name-Last: Aulerich 
Author-Name: Scott   H. Irwin 
Author-X-Name-First: Scott   H. 
Author-X-Name-Last: Irwin 
Author-Name: Philip Garcia 
Author-X-Name-First: Philip 
Author-X-Name-Last: Garcia 
Title: Returns to individual traders in agricultural futures markets: skill or luck? 
Abstract:
  Using individual trader data from the Commodity Futures Trading
 Commission's (CFTC) Large Trader Reporting System (LTRS) for the period
 January 2000 to September 2009, this article investigates whether
 noncommercial traders in the corn, live cattle and coffee futures markets
 persist in making profits. Two out-of-sample measures of skill -- a winner
 and a loser ranking test and a top and a bottom decile test -- are used to
 analyse the ability of traders to consistently perform well at monthly,
 quarterly and annual time horizons. The findings identify significant
 persistence in rankings -- traders in the top half of the profit
 distribution in a time period tend to stay in the top half in the next
 period. Differences in magnitude of profitability between the top and
 bottom deciles also provide support that persistent skill exists among the
 top 10% of traders. Detailed examination of annual rankings for those
 traders who were most continuously in the markets further reveals
 persistence in profits for a smaller subset of traders, as well as an
 indication of persistence in the face of losses. 
Journal: Applied Economics 
Pages: 3650-3666 
Issue: 25 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.727979 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727979 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3650-3666




Template-Type: ReDIF-Article 1.0
Author-Name: Philipp   B. Schuster 
Author-X-Name-First: Philipp   B. 
Author-X-Name-Last: Schuster 
Title: One for all and all for one: privatization and Universal Service provision in the postal sector 
Abstract:
  Universal Service provision has a special role for the public utilities
 sector in many Organization for Economic Co-operation and Development
 (OECD) countries. These public utilities have largely been subject to
 privatization during the last 3 decades. Efficiency effects of
 privatization are widely documented while the impacts on the quality and
 accessibility of the Universal Service are not much examined. By using a
 unique dataset on privatization for 21 countries over the period
 1980--2007 for the postal sector, we are able to show that privatization,
 in particular formal privatization, has led to a decrease in the quality
 of the Universal Service. 
Journal: Applied Economics 
Pages: 3667-3682 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.727982 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727982 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3667-3682




Template-Type: ReDIF-Article 1.0
Author-Name: David   G. McMillan 
Author-X-Name-First: David   G. 
Author-X-Name-Last: McMillan 
Author-Name: Mark   E. Wohar 
Author-X-Name-First: Mark   E. 
Author-X-Name-Last: Wohar 
Title: The relationship between temperature and CO<sub>2</sub> emissions: evidence from a short and very long dataset 
Abstract:
  The debate regarding rising temperatures and CO<sub>2</sub> emissions has
 attracted the attention of economists employing recent econometric
 techniques. This article extends the previous literature using a dataset
 that covers 800&#x2009;000 years, as well as a shorter dataset, and
 examines the interaction between temperature and CO<sub>2</sub> emissions.
 Unit root tests reveal a difference between the two datasets. For the long
 dataset, all tests support the view that both temperature and
 CO<sub>2</sub> are stationary around a constant. For the short dataset,
 temperature exhibits trend-stationary behaviour, while CO<sub>2</sub>
 contains a unit root. This result is robust to nonlinear trends or trend
 breaks. Modelling the long dataset reveals that while contemporaneous
 CO<sub>2</sub> appears positive and significant in the temperature
 equation, including lags results in a joint effect that is near zero. This
 result is confirmed using a different lag structure and Vector
 Autoregressive (VAR) model. A Generalized Method of Moments (GMM) approach
 to account for endogeneity suggests an insignificant relationship. In sum,
 the key result from our analysis is that CO<sub>2</sub> has, at best, a
 weak relationship with temperature, while there is no evidence of trending
 when using a sufficiently long dataset. Thus, as a secondary result we
 highlight the danger of using a small sample in this context. 
Journal: Applied Economics 
Pages: 3683-3690 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.729955 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.729955 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3683-3690




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Paradiso 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Paradiso 
Author-Name: Saten Kumar 
Author-X-Name-First: Saten 
Author-X-Name-Last: Kumar 
Author-Name: B.   Bhaskara Rao 
Author-X-Name-First: B.   Bhaskara 
Author-X-Name-Last: Rao 
Title: A New Keynesian IS curve for Australia: is it forward looking or backward looking? 
Abstract:
  This article estimates the forward looking, backward looking and an
 extended version of the New Keynesian IS curve for Australia. The validity
 of these models is investigated by imposing the constraint on real rate of
 interest as well as when the constraint is relaxed. Two measures of output
 gap, namely <italic>GAP1</italic> (constructed using the unobserved
 components approach) and <italic>GAP2</italic> (constructed using a
 quadratic trend) are utilized. Our results suggest that the baseline
 backward looking and forward looking models are overwhelmingly rejected by
 the data. This evidence strongly supports the extended backward looking
 model (with <italic>GAP2</italic>) being relevant for monetary policy
 analysis. 
Journal: Applied Economics 
Pages: 3691-3700 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.718068 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.718068 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3691-3700




Template-Type: ReDIF-Article 1.0
Author-Name: V. Bouvatier 
Author-X-Name-First: V. 
Author-X-Name-Last: Bouvatier 
Author-Name: S. Rigot 
Author-X-Name-First: S. 
Author-X-Name-Last: Rigot 
Title: Pension funds' allocations to hedge funds: an empirical analysis of US and Canadian defined benefit plans 
Abstract:
  This article investigates the characteristics of US and Canadian pension
 funds that allocate assets to hedge funds. The typical pension fund that
 invests in hedge funds is a large sophisticated pension fund that
 diversifies its portfolio across numerous classes of investments, private
 equity in particular, uses a core-satellite organization and has access to
 low delegation costs for alternative assets. Moreover, we find that
 pension funds investing in hedge funds significantly obtained higher
 global returns. 
Journal: Applied Economics 
Pages: 3701-3710 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.725932 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725932 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3701-3710




Template-Type: ReDIF-Article 1.0
Author-Name: Yves Croissant 
Author-X-Name-First: Yves 
Author-X-Name-Last: Croissant 
Author-Name: William Roy 
Author-X-Name-First: William 
Author-X-Name-Last: Roy 
Author-Name: Joan Canton 
Author-X-Name-First: Joan 
Author-X-Name-Last: Canton 
Title: Reducing urban public transport costs by tendering lots: a panel data estimation 
Abstract:
  Allotment is, for urban authorities, a governance strategy to reduce
 public transport costs. It consists of dividing a network into several
 lots, so as to multiply the number of calls for tender. On the one hand,
 gains should be obtained by increasing competition for the market and
 reducing the costs of obtaining accurate information. On the other hand,
 cutting a network into several parts is also expected to have negative
 consequences on production costs, in terms of lower returns to scale. Many
 industry stakeholders believe that the latter element more than
 compensates for the former. In this article, we estimate a translog cost
 function with a panel of 141 French urban public transport networks. Our
 main conclusion is that scale economies are exhausted for a production of
 about 3 million vehicle-kilometres per year. Therefore, as far as returns
 to scale are concerned, allotment would reduce the costs of public
 transport services for the main cities of our sample. A second dividend
 for allotment is then presented and implies that the assumed trade-off
 between returns to scale and increased competition is irrelevant. 
Journal: Applied Economics 
Pages: 3711-3722 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.730133 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730133 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3711-3722




Template-Type: ReDIF-Article 1.0
Author-Name: Maria   Rosa Borges 
Author-X-Name-First: Maria   Rosa 
Author-X-Name-Last: Borges 
Author-Name: Ricardo Gairifo 
Author-X-Name-First: Ricardo 
Author-X-Name-Last: Gairifo 
Title: Abnormal returns before acquisition announcements: evidence from Europe 
Abstract:
  Acquisition announcements influence the stock price of target firms,
 providing an opportunity for insiders to obtain significant abnormal
 returns. We study the presence of positive abnormal returns before the
 announcement date, in target firms, quoted in Euronext markets (Belgium,
 France, The Netherlands and Portugal) from 2001 to 2007. We investigate
 whether the pre-announcement run-up of prices can be explained by rumours
 in the media and the percentage of capital previously owned by the bidding
 firm, among other factors. We examine cumulative abnormal returns in an
 event window of 60 days prior the acquisition announcement, with the event
 date adjusted for the previous disclosure of news about the acquisition,
 in the media. We compute a run-up index, and find that there are abnormal
 positive returns before the announcement date, confirming previous
 studies. We find that a significant part of the run-up is explained by:
 (i) market anticipation triggered by legitimate sources of information,
 namely, rumours in the media about the possibility of an acquisition bid
 and (ii) the percentage of capital previously owned in the target firm, by
 the bidding firm. 
Journal: Applied Economics 
Pages: 3723-3732 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.730134 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730134 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3723-3732




Template-Type: ReDIF-Article 1.0
Author-Name: F. V. Vieira 
Author-X-Name-First: F. V. 
Author-X-Name-Last: Vieira 
Author-Name: M. Holland 
Author-X-Name-First: M. 
Author-X-Name-Last: Holland 
Author-Name: C.   Gomes da Silva 
Author-X-Name-First: C.   Gomes 
Author-X-Name-Last: da Silva 
Author-Name: L. C. Bottecchia 
Author-X-Name-First: L. C. 
Author-X-Name-Last: Bottecchia 
Title: Growth and exchange rate volatility: a panel data analysis 
Abstract:
  The aim of this article is to assess the role of Real Exchange Rate (RER)
 volatility on long-run economic growth for a set of 82 advanced and
 emerging economies, using a panel data set ranging from 1970 to 2009. With
 an accurate measure for exchange rate volatility, the results for the
 two-step system Generalized Method of Moments (GMM) panel growth models
 show that a more (less) volatile RER has a significant negative (positive)
 impact on economic growth. The results are also robust for different model
 specifications. 
Journal: Applied Economics 
Pages: 3733-3741 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.730135 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730135 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3733-3741




Template-Type: ReDIF-Article 1.0
Author-Name: Toshio Utsunomiya 
Author-X-Name-First: Toshio 
Author-X-Name-Last: Utsunomiya 
Title: A new approach to the effect of intervention frequency on the foreign exchange market: evidence from Japan 
Abstract:
  This article estimates and analyses the effect of intervention frequency
 on the yen/dollar market, using daily intervention data. We examine using
 a nonlinear methodology, with the frequency of intervention from April
 1991 to December 2005 as a focal explanatory variable. In this article, we
 also introduce a flexible target zone model that is capable of
 characterizing the dynamic behaviour of an exchange rate implied by the
 original target zone model of Krugman and its modifications. The empirical
 results show the importance of considering the threshold effect when
 analysing the effect of intervention due to the presence of asymmetry in
 the foreign exchange market. Moreover, we show that a high frequency
 intervention stabilizes the exchange rate by reducing exchange rate
 volatility, especially when the yen appreciates. 
Journal: Applied Economics 
Pages: 3742-3759 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.730136 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730136 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3742-3759




Template-Type: ReDIF-Article 1.0
Author-Name: Maty Konte 
Author-X-Name-First: Maty 
Author-X-Name-Last: Konte 
Title: A curse or a blessing? Natural resources in a multiple growth regimes analysis 
Abstract:
  The literature on the impact of an abundance of natural resources on
 economic performance remains inconclusive. In this article we consider the
 possibility that countries may follow different growth regimes, and test
 the hypothesis that whether natural resources are a curse or a blessing
 depends on the growth regime to which an economy belongs. We follow recent
 work that has used a mixture-of-regressions method to identify different
 growth regimes, and find two regimes such that in one regime resources
 have a positive impact on growth, while in the other they have a negative
 impact or at best have no impact on growth. Our analysis of the
 determinants of whether a country belongs or not to the blessed resources
 regime indicates that the level of democracy plays an important role while
 education and economic institutions have no effect. 
Journal: Applied Economics 
Pages: 3760-3769 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.730137 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730137 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3760-3769




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Ismail 
Author-X-Name-First: Ahmad 
Author-X-Name-Last: Ismail 
Author-Name: Abed   A. Abdallah 
Author-X-Name-First: Abed   A. 
Author-X-Name-Last: Abdallah 
Title: Acquirer's return and the choice of acquisition targets: does acquisition experience matter? 
Abstract:
  We study a sample of 6503 UK acquisitions completed between 1985 and 2004
 and control for previous deals similarities. Returns for frequent
 acquirers decrease constantly but they remain positive through high-order
 deals. We do not detect an improving pattern of returns but, at best, a
 stable one when the deal is settled for cash. Using
 &#x2018;characteristics-based&#x2019; experience variables, our
 multivariate analysis shows that the acquirers&#x2019; returns are
 unaffected by prior acquisition experience. However, we find solid
 evidence for acquirers drawing inferences from prior experience in
 designing the method of payment, selecting the organizational form of the
 target firm and engaging in focused acquisitions, which is consistent with
 learning through acquisitions. The results are robust to various
 consistency checks. 
Journal: Applied Economics 
Pages: 3770-3777 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.732688 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.732688 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3770-3777




Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo   G. Campos 
Author-X-Name-First: Rodolfo   G. 
Author-X-Name-Last: Campos 
Author-Name: Iliana Reggio 
Author-X-Name-First: Iliana 
Author-X-Name-Last: Reggio 
Author-Name: Dionisio Garc𫑐𺑺 
Author-X-Name-First: Dionisio 
Author-X-Name-Last: Garc𫑐𺑺 
Title: Micro versus macro consumption data: the cyclical properties of the consumer expenditure survey 
Abstract:
  The Consumer Expenditure Survey (CEX) offers the most comprehensive
 consumption data at the consumer level for the United States. Several
 previous studies have shown a large gap between per-capita consumption
 from the CEX and the aggregate Personal Consumption Expenditure (PCE)
 series. While previous research has focused on consumption levels, we
 focus on the cyclical properties of consumption. We find that the cyclical
 properties of consumption expenditure data from the two sources are
 quantitatively very different. This result calls for caution when using
 CEX data for business cycle research. 
Journal: Applied Economics 
Pages: 3778-3785 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.732689 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.732689 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3778-3785




Template-Type: ReDIF-Article 1.0
Author-Name: Bente Halvorsen 
Author-X-Name-First: Bente 
Author-X-Name-Last: Halvorsen 
Author-Name: Bodil   M. Larsen 
Author-X-Name-First: Bodil   M. 
Author-X-Name-Last: Larsen 
Title: How serious is the aggregation problem? An empirical illustration 
Abstract:
  Heterogeneity in consumer behaviour may create problems with aggregation
 across consumers. If so, we may not be able to make correct inferences
 about behaviour based on aggregated data. However, using micro estimates
 to predict aggregate demand responses to policy changes may also create a
 bias if not aggregated properly. This may sound like a Catch 22 situation,
 but it is not, as it is possible to calculate both micro and aggregate
 demand responses based on microdata. The size of the aggregation bias is
 an empirical question. In this article, we show how to calculate
 theoretically consistent aggregate demand responses. We use both micro and
 macro data for Norwegian household electricity consumption to illustrate
 the magnitude and direction of different aggregation biases. We find
 considerable aggregation biases, in particular, when estimating with macro
 data. 
Journal: Applied Economics 
Pages: 3786-3794 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.732690 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.732690 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3786-3794




Template-Type: ReDIF-Article 1.0
Author-Name: Richard   J. Cebula 
Author-X-Name-First: Richard   J. 
Author-X-Name-Last: Cebula 
Author-Name: Christopher   M. Duquette 
Author-X-Name-First: Christopher   M. 
Author-X-Name-Last: Duquette 
Author-Name: Franklin   G. Mixon 
Author-X-Name-First: Franklin   G. 
Author-X-Name-Last: Mixon 
Title: Battleground states and voter participation in US presidential elections: an empirical test 
Abstract:
  The winner-take-all method of allocating Electoral College votes (in 48
 of the 50 states) in US presidential elections has promoted interesting
 behaviours by politicians and states that are evident throughout US
 (economic) history. This analysis explores the impact that being a
 &#x2018;battleground state&#x2019; in presidential elections has on future
 voter participation rates. After quantifying the degree to which each
 state is a battleground state, the empirical analysis proffers what it
 refers to as the &#x2018;battleground voting hypothesis&#x2019;, which
 argues that the greater the degree to which a given state is a
 battleground state, the greater the expected benefits from voting in that
 state and hence the greater the voter turnout in that state. The empirical
 results suggest that the top-to-bottom &#x2018;battleground state
 effect&#x2019; generated an average of 7.8 additional percentage points in
 voter participation in presidential elections over the period 1964--2008
 for those states at the top of the scale. 
Journal: Applied Economics 
Pages: 3795-3799 
Issue: 26 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.727981 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727981 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3795-3799




Template-Type: ReDIF-Article 1.0
Author-Name: Mariano Kulish 
Author-X-Name-First: Mariano 
Author-X-Name-Last: Kulish 
Author-Name: Stephen Elias 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Elias 
Title: Direct effects of money on aggregate demand: another look at the evidence 
Abstract:
  Now that a number of central banks are faced with short-term nominal
 interest rates close to or at the zero lower bound, there is a renewed
 interest in the long-running debate about whether or not changes in the
 stock of money have direct effects. In particular, do changes in money
 have additional effects on aggregate demand outside of those induced by
 changes in short-term nominal interest rates? This article revisits and
 reinterprets the empirical evidence based on single equation regressions
 which is quite mixed, with some results supporting and other results
 denying the existence of direct effects. We use a structural model with no
 direct effects of money to show that the finding of positive and
 statistically significant coefficients on real money growth can be
 misleading. The model generates data that, when used to estimate analogues
 of the empirical regressions, produce positive and statistically
 significant coefficients on real money growth, similar to those often
 found when using actual data. The problem is that single equation
 regressions leave out a set of variables, which in turn, give rise to an
 omitted variables bias in the estimated coefficients on real money growth.
 Hence, they are an unreliable guide to calibrate monetary policies, in
 general, including at the zero lower bound. 
Journal: Applied Economics 
Pages: 3801-3809 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.718067 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.718067 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3801-3809




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Yang 
Author-X-Name-First: Juan 
Author-X-Name-Last: Yang 
Author-Name: Huawei Liu 
Author-X-Name-First: Huawei 
Author-X-Name-Last: Liu 
Author-Name: David   J. Leatham 
Author-X-Name-First: David   J. 
Author-X-Name-Last: Leatham 
Title: The multi-market analysis of a housing price transmission model 
Abstract:
  In this article, we examine dynamic relationships among housing prices
 from four first-tier cities in China from December 2000 to May 2010 and
 present an equilibrium model of housing price in multi-markets. By
 explicitly incorporating and modelling endogenous price series in
 competing housing markets, our empirical model is able to capture the
 existence of long-run equilibrium relationships and important short-run
 dynamics and price structures such as price leadership, price transmission
 lag and asymmetric price responses. Such multi-market analysis has
 generalized implications and can easily be applied to analyse the pricing
 dynamics among other real estate markets in the world. Our major
 contribution lies in two aspects. First, we employ an Error-Correction
 Model (ECM) with Directed Acyclic Graphs (DAG) to study the price dynamics
 in the four largest and key housing markets in China. Second, we uncover a
 price transmission among these housing markets in China and provide an
 insightful understanding of price adjustment across markets. The revealed
 effective price transmission and high correlation among these different
 markets actually is not a good thing for a stable financial system and for
 the defence against price bubbles in the housing market. 
Journal: Applied Economics 
Pages: 3810-3819 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.734595 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.734595 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3810-3819




Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Hsin Huang 
Author-X-Name-First: Tai-Hsin 
Author-X-Name-Last: Huang 
Author-Name: Zixiong Xie 
Author-X-Name-First: Zixiong 
Author-X-Name-Last: Xie 
Title: Population and economic growth: a simultaneous equation perspective 
Abstract:
  This article examines the relationship between Population Growth (PG) and
 Economic Growth (EG) in the framework of simultaneous structural equation
 models. Based on Lewbel (2012), the structural parameters can be estimated
 using the Generalized Method of Moments (GMM). Identification requires a
 heteroscedastic covariance restriction that appears in some models of
 endogeneity, measurement errors and panel data. This study obtains several
 findings. First, the current and lagged variables of <italic>PG</italic>
 negatively and positively affect <italic>EG</italic> in the short run.
 Second, <italic>PG</italic> does not significantly influence
 <italic>EG</italic> in the long run. Third, the reverse relations running
 from <italic>EG</italic> to <italic>PG</italic> are weak in both the short
 and long run, regardless of economic development conditions. 
Journal: Applied Economics 
Pages: 3820-3826 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.734596 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.734596 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3820-3826




Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Mazzanti 
Author-X-Name-First: Massimiliano 
Author-X-Name-Last: Mazzanti 
Author-Name: Antonio Musolesi 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Musolesi 
Title: The heterogeneity of carbon Kuznets curves for advanced countries: comparing homogeneous, heterogeneous and shrinkage/Bayesian estimators 
Abstract:
  We investigate Carbon Kuznets Curves (CKC) relationships for advanced
 countries grouped in policy relevant groups -- North America and Oceania,
 South Europe, North Europe -- by means of various homogeneous,
 heterogeneous and shrinkage/Bayesian panel estimators. We try to provide
 an answer to the question &#x2018;how sensitive are the CKC estimates to
 changes in the level of parameters' heterogeneity?&#x2019;. We do find
 that in coherence with their &#x2018;policy and economic&#x2019;
 commitment to carbon reductions and environmental market-based instruments
 implementation, bell shapes are present only for northern EU, which leads
 the group of advanced countries. The other two lag behind. We show for the
 first time that CKC shapes are present if we net out Europe of the
 southern and less developed countries. This is coherent with the Kuznets
 paradigm. The negative side of the tale is that they characterize a bunch
 of few countries. Other advanced countries lag behind and are far from
 reaching a CKC dynamics. Heterogeneous and Bayesian estimators clearly
 show this, with the EU presenting turning points closely around
 $13&#x2009;000 per capita Gross Domestic Product (GDP). Heterogeneous
 panel estimates also show that for lagging countries presumed bell shapes
 turn into linear relationships. The stability of outcomes across models is
 stronger when we compare heterogeneous rather than homogeneous models. If
 it is compared with other studies, our analysis highlights a relative
 lower variability across specifications. 
Journal: Applied Economics 
Pages: 3827-3842 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.734597 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.734597 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3827-3842




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Paradiso 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Paradiso 
Author-Name: Saten Kumar 
Author-X-Name-First: Saten 
Author-X-Name-Last: Kumar 
Author-Name: B.   Bhaskara Rao 
Author-X-Name-First: B.   Bhaskara 
Author-X-Name-Last: Rao 
Title: The growth effects of education in Australia 
Abstract:
  In this article, we estimate the growth effect of human capital with
 country-specific time series data for Australia. In doing so, we extended
 the Solow (1956) growth model by using educational attainment as a measure
 of human capital developed by Barro and Lee (2010). The extended Solow
 (1956) model performs well after allowing for the presence of structural
 changes. Our results, based on alternative time series methods, show that
 educational attainment has a small and significant permanent effect on the
 growth rate of per worker output in Australia. 
Journal: Applied Economics 
Pages: 3843-3852 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.724161 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.724161 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3843-3852




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitra Dimitropoulou 
Author-X-Name-First: Dimitra 
Author-X-Name-Last: Dimitropoulou 
Author-Name: Philip McCann 
Author-X-Name-First: Philip 
Author-X-Name-Last: McCann 
Author-Name: Simon   P. Burke 
Author-X-Name-First: Simon   P. 
Author-X-Name-Last: Burke 
Title: The determinants of the location of foreign direct investment in UK regions&#x2020; 
Abstract:
  This article employs a database of over 2000 observations of Foreign
 Direct Investment (FDI) projects in UK regions. We analyse this data by
 means of various multinomial and conditional logit models in order to
 identify the major determinants of the location choices of these inward
 investments. Having controlled for the various characteristics of inward
 investing firms, the projects and the regions, our results suggest that
 existing regional specialization is the single most important determining
 feature of where inward FDI locates. In addition, London is seen to
 benefit primarily by the immigration of new investments, the majority of
 which are related to service sector activities. 
Journal: Applied Economics 
Pages: 3853-3862 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2011.558482 
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558482 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3853-3862




Template-Type: ReDIF-Article 1.0
Author-Name: Carmelo   J. Le&#xF3;n 
Author-X-Name-First: Carmelo   J. 
Author-X-Name-Last: Le&#xF3;n 
Author-Name: Jorge   E. Ara&#xF1;a 
Author-X-Name-First: Jorge   E. 
Author-X-Name-Last: Ara&#xF1;a 
Author-Name: Javier de Le&#xF3;n 
Author-X-Name-First: Javier 
Author-X-Name-Last: de Le&#xF3;n 
Title: Valuing the social cost of corruption using subjective well being data and the technique of vignettes 
Abstract:
  Corruption can have an effect on people's happiness and satisfaction, and
 therefore, can generate a social cost. However, the perceptions of
 corruption and satisfaction can also vary across subjects, due to
 socioeconomic and cultural characteristics. This article studies the
 differences in the perceptions of corruption and satisfaction across
 subjects, utilizing the technique of vignettes for the correction of the
 bias that follows from the differences in the response scale across
 individuals. The evidence comes from a sample of citizens in Spain, who
 are asked about their perceptions of corruption and personal satisfaction.
 The results show that there exists a response scale bias, both for
 corruption and satisfaction. These results are utilized to approximate the
 social cost of corruption. 
Journal: Applied Economics 
Pages: 3863-3870 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.741678 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.741678 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3863-3870




Template-Type: ReDIF-Article 1.0
Author-Name: Emilios Galariotis 
Author-X-Name-First: Emilios 
Author-X-Name-Last: Galariotis 
Title: Mesdames et Messieurs, momentum performance is not so abnormal after all! 
Abstract:
  This article provides evidence regarding the performance of momentum
 investment strategies that is consistent with the Neoclassical Theory.
 More specifically, while momentum investment returns appear orthogonal to
 systematic risk in the extant literature, this article illustrates that
 they are due to correlated changes of hedge portfolio systematic risk
 exposures with market conditions. Momentum portfolios are excellent market
 timers in both expanding and contracting markets. Their returns however
 are generally not abnormal when timing is considered in an augmented
 unconditional Capital Asset Pricing Model (CAPM), while the standard
 version erroneously considers them to be so, possibly explaining why
 momentum studies have so far rejected the Neoclassical Theory. 
Journal: Applied Economics 
Pages: 3871-3879 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.730138 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3871-3879




Template-Type: ReDIF-Article 1.0
Author-Name: Sean Pascoe 
Author-X-Name-First: Sean 
Author-X-Name-Last: Pascoe 
Author-Name: James Innes 
Author-X-Name-First: James 
Author-X-Name-Last: Innes 
Author-Name: Ana Norman-L&#xF3;pez 
Author-X-Name-First: Ana 
Author-X-Name-Last: Norman-L&#xF3;pez 
Author-Name: Chris Wilcox 
Author-X-Name-First: Chris 
Author-X-Name-Last: Wilcox 
Author-Name: Natalie Dowling 
Author-X-Name-First: Natalie 
Author-X-Name-Last: Dowling 
Title: Economic and conservation implications of a variable effort penalty system in effort-controlled fisheries 
Abstract:
  Bycatch of threatened, endangered or protected species by commercial
 fishers is a universal problem. Technical solutions are often applied that
 may impose inefficiencies across the fleet, even in periods or areas when
 the risk of bycatch is low. These may include gear specifically designed
 to avoid the bycatch which may also reduce the targeted catch, or
 designation of marine protected areas that exclude fishing from whole
 areas. In this article, we examine the effectiveness of a variable penalty
 system that can provide incentives for fishers to redirect their effort
 away from problem areas. The system is examined using a case study of
 fishery, which is currently subjected to gear and closure controls to
 limit bycatch of turtles and seabirds. An alternative incentive-based
 management policy using a series of differential hook penalties has been
 proposed as a flexible tool to discourage vessels operating in certain
 areas. The effects of various hook penalties and closures in key areas on
 fishing effort in those areas and elsewhere as well as vessel economic
 performance are assessed using a location choice model. The results
 suggest that incentive-based approaches may result in lower costs to
 industry than closures provided some level of residual bycatch is
 acceptable. 
Journal: Applied Economics 
Pages: 3880-3890 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.736941 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736941 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3880-3890




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel   J. Power 
Author-X-Name-First: Gabriel   J. 
Author-X-Name-Last: Power 
Author-Name: Dmitry   V. Vedenov 
Author-X-Name-First: Dmitry   V. 
Author-X-Name-Last: Vedenov 
Author-Name: David   P. Anderson 
Author-X-Name-First: David   P. 
Author-X-Name-Last: Anderson 
Author-Name: Steven Klose 
Author-X-Name-First: Steven 
Author-X-Name-Last: Klose 
Title: Market volatility and the dynamic hedging of multi-commodity price risk 
Abstract:
  Commodity cash and futures prices experienced a severe boom-and-bust
 cycle between 2006 and 2009. Increases in commodity price volatility have
 raised concerns about the usefulness of commodity futures and options as
 risk management tools. Dynamic hedging strategies have the potential to
 improve risk management when conditional (co)variances depart
 significantly from their unconditional, long-run counterparts and may be
 useful to decision-makers despite their greater complexity and higher
 transaction costs. We propose a Nonparametric Copula-based Generalized
 Autoregressive Conditional Heteroscedastic (NPC-GARCH) approach to
 estimate time-varying hedge ratios, and evaluate the benefits of dynamic
 hedging during four sub-periods between 2000 and 2011 using a stylized
 Texas cattle feedlot management problem. The NPC-GARCH approach allows for
 a flexible, nonlinear and asymmetric dependence structure between cash and
 futures prices for different commodities. We find that NPC-GARCH dynamic
 hedging performs better than either static, GARCH-Dynamic Conditional
 Correlation (DCC) or GARCH-Baba, Engle, Kraft and Kroner (BEKK) hedging in
 terms of lower tail risk (expected shortfall), but that there is no
 significant difference between hedging approaches in terms of portfolio
 variance reduction. 
Journal: Applied Economics 
Pages: 3891-3903 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.736942 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736942 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3891-3903




Template-Type: ReDIF-Article 1.0
Author-Name: Jie Li 
Author-X-Name-First: Jie 
Author-X-Name-Last: Li 
Title: The effectiveness of fiscal and monetary policy responses to twin crises 
Abstract:
  We study how effective fiscal and monetary policy responses are during a
 twin crisis. Using the dataset provided by Laeven and Valencia (2008), we
 identify 57 episodes of twin crises. Following the methods proposed in
 Baldacci <italic>et&#xA0;al</italic>. (2009) and Hutchison
 <italic>et&#xA0;al</italic>. (2010), we construct the variables measuring
 the duration and output cost of a twin crisis. We find that fiscal policy
 does not seem to be associated with the shortening of a twin crisis.
 Regarding monetary policy, we find that monetary tightening is associated
 with the lengthening of a twin crisis duration, consistent with the result
 in Hutchison <italic>et&#xA0;al</italic>. (2010) dealing with a sudden
 stop crisis. In addition, our results show that while a mild monetary
 expansion is effective in reducing a twin crisis duration,
 over-expansionary monetary policy loses its effectiveness. 
Journal: Applied Economics 
Pages: 3904-3913 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.736943 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736943 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3904-3913




Template-Type: ReDIF-Article 1.0
Author-Name: Alpaslan Akay 
Author-X-Name-First: Alpaslan 
Author-X-Name-Last: Akay 
Author-Name: G&#xF6;khan Karabulut 
Author-X-Name-First: G&#xF6;khan 
Author-X-Name-Last: Karabulut 
Author-Name: Peter Martinsson 
Author-X-Name-First: Peter 
Author-X-Name-Last: Martinsson 
Title: The effect of religiosity and religious festivals on positional concerns -- an experimental investigation of Ramadan 
Abstract:
  This article examines the effect of religion on positional concerns using
 survey experiments. We focus on two of the dimensions of religion --
 degree of religiosity and religious festivals. By conducting the
 experiments during both the most important day of Ramadan (the Night of
 Power) and a day outside Ramadan, we find that Ramadan overall has a small
 and negative impact on positional concerns. Detailed analyses based on the
 sorting of individuals&#x2019; degree of religiosity reveal that the
 decrease in the degree of positional concerns during Ramadan is mainly
 explained by a decrease in positionality among individuals with a low
 degree of religiosity. 
Journal: Applied Economics 
Pages: 3914-3921 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.736944 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736944 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3914-3921




Template-Type: ReDIF-Article 1.0
Author-Name: T. M. Fullerton 
Author-X-Name-First: T. M. 
Author-X-Name-Last: Fullerton 
Author-Name: A. G. Walke 
Author-X-Name-First: A. G. 
Author-X-Name-Last: Walke 
Title: Public transportation demand in a border metropolitan economy 
Abstract:
  Empirical research for public transport demand has uncovered numerous
 interesting commonalities across metropolitan economies. This study
 examines the demand for municipal bus services over time in El Paso,
 Texas, USA. El Paso is one of the largest metropolitan economies in the
 USA located directly adjacent to an international boundary with another
 country. This study not only models the demand for municipal bus services
 as a function of traditional variables such as price, income and weather,
 but also includes regressors designed to measure the potential impacts of
 cross-border economic conditions on El Paso ridership. Results from a
 Linear Transfer Function (LTF) modelling approach indicate that rider
 volumes are affected by domestic as well as international economic
 conditions in this border metropolitan area. 
Journal: Applied Economics 
Pages: 3922-3931 
Issue: 27 
Volume: 45 
Year: 2013 
Month: 9 
X-DOI: 10.1080/00036846.2012.736945 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736945 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3922-3931




Template-Type: ReDIF-Article 1.0
Author-Name: K. Obeng 
Author-X-Name-First: K. 
Author-X-Name-Last: Obeng 
Title: Bus transit technical efficiency using latent class stochastic indirect production frontier 
Abstract:
  Using an Indirect Production Frontier (IPF), this article examines
 technical inefficiency within a latent class framework while
 simultaneously accounting for allocative distortions from operating and
 capital subsidies. It identifies two latent classes of US public transit
 systems, one characterized by economies of scale with 16.61% technical
 inefficiency and the other by diseconomies of scale with 14.16% technical
 inefficiency. It decomposes technical inefficiency among some of its
 sources and finds that the incentive tier of federal operating subsidies,
 regulations regarding years of vehicle use, subsidy-induced allocative
 distortion from labour overuse relative to capital negatively influence
 technical inefficiency in all transit systems. For the Latent Class 1
 transit systems, the sources of lower technical inefficiency are operating
 speed, purchased transportation and years-of-vehicle-use regulation. For
 the Latent Class 2 transit systems, these sources are subsidy-induced
 capital-labour allocative distortion and the incentive tier component of
 the federal formula grant. 
Journal: Applied Economics 
Pages: 3933-3942 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.736946 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736946 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3933-3942




Template-Type: ReDIF-Article 1.0
Author-Name: Deliana Kostova 
Author-X-Name-First: Deliana 
Author-X-Name-Last: Kostova 
Title: A (nearly) global look at the dynamics of youth smoking initiation and cessation: the role of cigarette prices 
Abstract:
  This study investigates the role of cigarette prices on smoking
 initiation and cessation among youth in a sample of eight primarily
 non-Western low, middle, and high income countries, with a particular
 focus on a subsample of 40 low- and middle-income countries (LMICs). Using
 split-population duration models on longitudinally-transformed individual
 data from the Global Youth Tobacco Survey (GYTS), the average impact of
 cigarette prices in the presence of unobserved country heterogeneity and
 shifting cultural norms within countries is identified by the variation of
 cigarette prices within countries over time. Price increases are found to
 effectively reduce initiation in early youth, and girls are considerably
 more responsive than boys. The price elasticity of initiation in LMICs is
 &#x2212;0.82 for the combined gender analysis, &#x2212;0.46 for boys only
 and &#x2212;1.5 for girls only. There is some indication that youths in
 developing countries may be slightly less responsive to price changes than
 in high-income countries. No evidence is found that cigarette prices
 increase quitting rates in youth, which may be due to the difficulty of
 defining true quitting among smokers in early life. 
Journal: Applied Economics 
Pages: 3943-3951 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.736947 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736947 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3943-3951




Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandar Ke&#x161;eljevi&#x107; 
Author-X-Name-First: Aleksandar 
Author-X-Name-Last: Ke&#x161;eljevi&#x107; 
Author-Name: Rok Spruk 
Author-X-Name-First: Rok 
Author-X-Name-Last: Spruk 
Title: Endogenous economic freedom and the wealth of nations: evidence from a panel of countries, 1996--2011 
Abstract:
  Indexes of economic freedom measure the degree to which the policies and
 institutions of countries are supportive of economic freedom. The authors
 find a considerable scope for improvement in Index of Economic Freedom,
 created by Heritage Foundation, since not all components of index have
 equal effect on economic well-being. Contrary to Heritage methodology the
 authors tackle the aggregation bias and highlight that each index
 component contributes differently to the level of economic freedom and
 subsequently to the level of income per capita. The level of fiscal
 freedom and monetary freedom exert the strongest influence on the overall
 index of economic freedom. Authors present the new endogenous
 cross-country ranking of 135 countries from Instrumental Variable-Two
 Stage Least Squares (IV-2SLS) empirical specification which removes the
 inconsistencies arising from the arbitrary assumption of the equivalent
 effect of each component on the overall index and, hence, the level of
 real income per capita. 
Journal: Applied Economics 
Pages: 3952-3962 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.736948 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736948 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3952-3962




Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina   G. De Silva 
Author-X-Name-First: Dakshina   G. 
Author-X-Name-Last: De Silva 
Author-Name: Robert   P. McComb 
Author-X-Name-First: Robert   P. 
Author-X-Name-Last: McComb 
Author-Name: Anita   R. Schiller 
Author-X-Name-First: Anita   R. 
Author-X-Name-Last: Schiller 
Title: Do production subsidies have a wage incidence in wind power? 
Abstract:
  Employment in electricity generation from renewable resources has
 expanded rapidly in the US and in Texas during the last decade.
 Availability of the Production Tax Credit (PTC) has been an important
 driver of this growth. Using establishment-level employment and payroll
 data for Texas at the North American Industrial Classification System
 (NAICS)-6 level, we analyse the differences in average wages between firms
 generating electricity from fossil fuels and those generating electricity
 from wind power. We compare relative average wages before and after the
 rapid expansion of wind power development that followed the <italic>ex
 ante</italic> renewal of the PTC in 2006. Our main finding using both the
 parametric and nonparametric estimation techniques proposed by Racine and
 Li (2004), is that average payrolls for wind power generators increased
 relative to fossil fuel-based electricity generators after 2006. 
Journal: Applied Economics 
Pages: 3963-3972 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.741679 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.741679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3963-3972




Template-Type: ReDIF-Article 1.0
Author-Name: David Greasley 
Author-X-Name-First: David 
Author-X-Name-Last: Greasley 
Author-Name: Jakob   B. Madsen 
Author-X-Name-First: Jakob   B. 
Author-X-Name-Last: Madsen 
Author-Name: Mark   E. Wohar 
Author-X-Name-First: Mark   E. 
Author-X-Name-Last: Wohar 
Title: Long-run growth empirics and new challenges for unified theory 
Abstract:
  Annual estimates of productivity are reported for periods over 500 years
 for eight countries and for five other countries over shorter periods.
 One- and two-break time series models are used to investigate
 discontinuities in productivity growth. The results support two-break
 models of long-run productivity and they favour approaches to unified
 growth modelling with three epochs. However, the lessening of productivity
 gaps and the decisive shifts to higher productivity occurred in the
 twentieth century, chiefly in the years around the World War II. The
 timing of the breaks and the complexity of the historical record
 highlights a need for unified models to connect more closely with economic
 history. 
Journal: Applied Economics 
Pages: 3973-3987 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.741780 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.741780 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3973-3987




Template-Type: ReDIF-Article 1.0
Author-Name: R. Becker 
Author-X-Name-First: R. 
Author-X-Name-Last: Becker 
Author-Name: Y. Wang 
Author-X-Name-First: Y. 
Author-X-Name-Last: Wang 
Title: Measuring the Chinese business cycle 
Abstract:
  This article documents the business cycle characteristics of the Chinese
 economy by adopting both nonparametric and parametric methodologies. The
 two approaches are applied to relevant macroeconomics indicators -- Gross
 Domestic Product (GDP) and Industrial Production (IP) indices -- aiming to
 investigate the growth cycle (deviation cycle). We provide a clear
 chronology of the Chinese growth cycle. One significant characteristic of
 the Chinese growth cycle is the relatively direct influence of government
 policies. However, recently these policy effects have become less
 significant when compared to global economic influences. Our study
 provides an enhanced understanding of the properties of business cycle
 dating algorithms and as such contributes to future Chinese business cycle
 research. 
Journal: Applied Economics 
Pages: 3988-4003 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.744135 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.744135 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3988-4003




Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Giamboni 
Author-X-Name-First: Luigi 
Author-X-Name-Last: Giamboni 
Author-Name: Emanuele Millemaci 
Author-X-Name-First: Emanuele 
Author-X-Name-Last: Millemaci 
Author-Name: Robert   J. Waldmann 
Author-X-Name-First: Robert   J. 
Author-X-Name-Last: Waldmann 
Title: Evaluating how predictable errors in expected income affect consumption 
Abstract:
  This article studies whether anomalies in consumption can be explained by
 a behavioural model in which agents make predictable errors in forecasting
 income. We use a micro-data set containing subjective expectations about
 future income. This article shows that the null hypothesis of rational
 expectations is rejected in favour of the behavioural model, since
 consumption responds to predictable forecast errors. On average, agents
 who we predict are too pessimistic increase consumption after the
 predictable positive income shock. On average, agents who are too
 optimistic reduce the consumption. 
Journal: Applied Economics 
Pages: 4004-4021 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.745987 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.745987 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4004-4021




Template-Type: ReDIF-Article 1.0
Author-Name: Benedict Clements 
Author-X-Name-First: Benedict 
Author-X-Name-Last: Clements 
Author-Name: Sanjeev Gupta 
Author-X-Name-First: Sanjeev 
Author-X-Name-Last: Gupta 
Author-Name: Masahiro Nozaki 
Author-X-Name-First: Masahiro 
Author-X-Name-Last: Nozaki 
Title: What happens to social spending in IMF-supported programmes? 
Abstract:
  This article finds that education and health spending has risen during
 International Monetary Fund (IMF)-supported programmes at a faster pace
 than in developing countries as a whole. The analysis is based on the most
 comprehensive dataset assembled thus far for this purpose, with data
 covering 1985 to 2009 for 140 countries. Controlling for other
 determinants of education and health spending, including macroeconomic
 conditions, the results confirm that IMF-supported programmes have a
 positive and significant effect on social spending in low-income
 countries. Over a 5-year period with IMF-supported programmes, spending
 for education increases by about &#xBE; percentage point of Gross Domestic
 Product (GDP); and for health, by about 1 percentage point of GDP.
 IMF-supported programmes are also associated with increases in the share
 of government spending allocated to education and health. 
Journal: Applied Economics 
Pages: 4022-4033 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.744136 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.744136 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4022-4033




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Hayo 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Hayo 
Author-Name: Matthias Neuenkirch 
Author-X-Name-First: Matthias 
Author-X-Name-Last: Neuenkirch 
Title: Does the currency board matter? US news and Argentine financial market reaction 
Abstract:
  Using a Generalized Autoregressive Conditional Heteroscedasticity (GARCH)
 model, we study the effects of the US monetary policy and macroeconomic
 announcements on Argentine money, stock and foreign exchange markets over
 the period January 1998 to July 2007. We show, first, that both types of
 news have a significant impact on all markets. Second, there are
 noticeable differences in reaction for different subsamples: Argentine
 money markets were more dependent on US news under the currency board than
 after it was abandoned as the floating exchange rate partly absorbs
 spillover effects from the US. Finally, we find that the
 US-dollar-denominated assets react less to US news than peso-denominated
 assets, which suggests that the currency board was not completely credible
 during its final years. 
Journal: Applied Economics 
Pages: 4034-4040 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.748177 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748177 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4034-4040




Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Cheng Hung 
Author-X-Name-First: Jui-Cheng 
Author-X-Name-Last: Hung 
Author-Name: Tien-Wei Lou 
Author-X-Name-First: Tien-Wei 
Author-X-Name-Last: Lou 
Author-Name: Yi-Hsien Wang 
Author-X-Name-First: Yi-Hsien 
Author-X-Name-Last: Wang 
Author-Name: Jun-De Lee 
Author-X-Name-First: Jun-De 
Author-X-Name-Last: Lee 
Title: Evaluating and improving GARCH-based volatility forecasts with range-based estimators 
Abstract:
  This article investigates the feasibility of using range-based estimators
 to evaluate and improve Generalized Autoregressive Conditional
 Heteroscedasticity (GARCH)-based volatility forecasts due to their
 computational simplicity and readily availability. The empirical results
 show that daily range-based estimators are sound alternatives for true
 volatility proxies when using Superior Predictive Ability (SPA) test of
 Hansen (2005) to assess GARCH-based volatility forecasts. In addition, the
 inclusion of the range-based estimator of Garman and Klass (1980) can
 significantly improve the forecasting performance of
 GARCH-<italic>t</italic> model. 
Journal: Applied Economics 
Pages: 4041-4049 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.748179 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748179 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4041-4049




Template-Type: ReDIF-Article 1.0
Author-Name: J. Muysken 
Author-X-Name-First: J. 
Author-X-Name-Last: Muysken 
Author-Name: T. H. W. Ziesemer 
Author-X-Name-First: T. H. W. 
Author-X-Name-Last: Ziesemer 
Title: A permanent effect of temporary immigration on economic growth 
Abstract:
  Immigration can help to lessen the burden of ageing for the welfare
 states of most Western economies. To show this, we develop a decomposition
 framework for Gross Domestic Product (GDP) per capita which deals with the
 impact of both ageing and immigration on economic growth. Using a Vector
 Error Correction Model (VECM) for the Netherlands during 1973 to 2009, we
 demonstrate the empirical relevance of some crucial interactions between
 elements of that decomposition. The conclusion is that even temporary
 immigration may help to alleviate the ageing problem through a positive
 long-term contribution to employment, wages and GDP per capita, as long as
 the immigrants are able to participate in the labour force in tandem with
 the native population. Unfavourable short-term effects should be avoided
 through a gradual phasing in of immigration policies. 
Journal: Applied Economics 
Pages: 4050-4059 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.748178 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748178 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4050-4059




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Serrano-Cinca 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Serrano-Cinca 
Author-Name: Bego&#xF1;a Guti鲲ez-Nieto 
Author-X-Name-First: Bego&#xF1;a 
Author-X-Name-Last: Guti鲲ez-Nieto 
Title: A decision support system for financial and social investment 
Abstract:
  This article proposes a decision-making model that assesses the different
 aspects associated to Social Venture Capital (SVC) investment decisions.
 SVC companies buy shares of investee companies, valued according to
 financial and social aspects. The proposed model includes three main
 factors: the previous experience with the company (the past); its
 financial information and intangible assets (the present); and the
 proposed project, considering financial and social criteria (the future).
 The model has 26 criteria and 160 indicators, prioritized by means of
 Analytic Hierarchy Process (AHP). AHP simplifies a complex problem using a
 hierarchical analysis methodology, which enables subjective judgements
 among different criteria. The model has been tested in a given SVC
 company. Its development is explained in this article. 
Journal: Applied Economics 
Pages: 4060-4070 
Issue: 28 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.748180 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748180 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4060-4070




Template-Type: ReDIF-Article 1.0
Author-Name: R. Alan Bowman 
Author-X-Name-First: R. Alan 
Author-X-Name-Last: Bowman 
Author-Name: Thomas Ashman 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Ashman 
Author-Name: James Lambrinos 
Author-X-Name-First: James 
Author-X-Name-Last: Lambrinos 
Title: Prospective measures of competitive balance: application to money lines in major league baseball 
Abstract:
	      This study examines competitive balance in Major League
 Baseball (MLB) by looking at the money lines for the games during the
 regular season. The assertion is that the closer the money lines are to
 indicating that each team has an equal chance of winning each game, the
 more competitive balance there is in the league. This study extends the
 model developed by Bowman <italic>et&#xA0;al</italic>. (2012), which used
 point spreads to assess competitive balance in the National Football
 League (NFL) and the National Basketball Association (NBA). In this study,
 money lines for the 1999--2011 seasons were used to develop several
 measures of competitive balance. The results indicate that competitive
 balance increased rather substantially during this period. A by-product of
 this research is to identify the most highly rated team and pitcher. In
 2002, New York Yankees were the highest rated team and from the year 2000
 Pedro Martinez was the highest rated pitcher.		
Journal: Applied Economics 
Pages: 4071-4081 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.750421 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.750421 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4071-4081




Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Cozad 
Author-X-Name-First: Melanie 
Author-X-Name-Last: Cozad 
Author-Name: Bruno Wichmann 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Wichmann 
Title: Efficiency of health care delivery systems: effects of health insurance coverage 
Abstract:
	      Health insurance expansions may increase the demand for
 care-creating incentives for health systems to increase input consumption.
 The possibility remains that added capacity and personnel will have little
 effect on health outcomes, decreasing the technical efficiency of health
 care delivery systems. We estimate that a 1 percentage point increase in
 health insurance coverage decreases the technical efficiency of health
 care delivery by 1.3 percentage points, translating into approximately 50
 billion dollars in additional health expenditures. This finding uncovers a
 previously unexplored consequence of changes in health insurance on the
 supply side of health care markets suggesting one avenue through which
 health care costs growth may occur.	      
Journal: Applied Economics 
Pages: 4082-4094 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.750420 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.750420 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4082-4094




Template-Type: ReDIF-Article 1.0
Author-Name: Giuliana Passamani 
Author-X-Name-First: Giuliana 
Author-X-Name-Last: Passamani 
Author-Name: Roberto Tamborini 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Tamborini 
Title: Monetary policy through the &#x2018;credit-cost channel&#x2019;: Italy and Germany pre- and post-EMU 
Abstract:
	      We present an empirical analysis of the &#x2018;Credit-Cost
 Channel&#x2019; (CCC) of monetary policy transmission. This channel
 combines bank credit supply and interest rates on loans as a cost to
 firms. The thrust of the CCC is that it makes both aggregate demand and
 aggregate supply dependent on monetary policy. As a consequence (1) credit
 market conditions (e.g. risk spreads) are important sources and indicators
 of macroeconomic shocks, (2) the real effects of monetary policy are
 larger and persistent. We have applied the Cointegrated Vector
 Autoregression (CVAR) econometric methodology to Italy and Germany in the
 &#x2018;hard&#x2019; EMS period and in the European Monetary Union (EMU)
 period. The short-run and long-run effects of the CCC are detectable for
 both countries in both periods. Simulation of the estimated model also
 confirms that inflation-targeting by way of inter-bank rate control
 stabilizes inflation through structural shifts of the stochastic
 equilibrium paths of both inflation and the output.	      
Journal: Applied Economics 
Pages: 4095-4113 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.748176 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748176 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4095-4113




Template-Type: ReDIF-Article 1.0
Author-Name: Rizki E. Wimanda 
Author-X-Name-First: Rizki E. 
Author-X-Name-Last: Wimanda 
Author-Name: Paul M. Turner 
Author-X-Name-First: Paul M. 
Author-X-Name-Last: Turner 
Author-Name: Maximilian J. B. Hall 
Author-X-Name-First: Maximilian J. B. 
Author-X-Name-Last: Hall 
Title: The shape of the Phillips curve: the case of Indonesia 
Abstract:
	      It is recognized that the effectiveness of monetary policy in
 the control of inflation depends critically on the relationship between
 inflation and the output gap. During booms, inflation is highly sensitive
 to monetary influences, but during recessions this influence is
 considerably muted. However, econometric investigation of this phenomenon
 has mostly focussed on the developed economies. In this article, the shape
 of the Phillips curve is investigated for Indonesia. Evidence is found of
 significant nonlinearities in the inflation--output relationship for
 Indonesia and it is argued that this relationship is best modelled by the
 capacity-constraint (L-shape) model.	       
Journal: Applied Economics 
Pages: 4114-4121 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.744137 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.744137 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4114-4121




Template-Type: ReDIF-Article 1.0
Author-Name: Rina Bhattacharya 
Author-X-Name-First: Rina 
Author-X-Name-Last: Bhattacharya 
Author-Name: Sanchita Mukherjee 
Author-X-Name-First: Sanchita 
Author-X-Name-Last: Mukherjee 
Title: Non-Keynesian effects of fiscal policy in OECD economies: an empirical study 
Abstract:
	      This article explores the hypothesis that the propensity to
 consume out of income varies in a nonlinear fashion with fiscal variables,
 and in particular with government debt per capita. Using panel data from
 18 Organization for Economic Cooperation and Development (OECD) countries,
 we examine whether there is any empirical evidence to support the
 hypothesis that households move from non-Ricardian to Ricardian behaviour
 as government debt reaches high levels and as uncertainty about future
 taxes increases. Our results provide support for this hypothesis, and also
 suggest that private and government consumption are complements in the
 household utility function.	      
Journal: Applied Economics 
Pages: 4122-4136 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.752571 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.752571 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4122-4136




Template-Type: ReDIF-Article 1.0
Author-Name: Yehenew Endegnanew 
Author-X-Name-First: Yehenew 
Author-X-Name-Last: Endegnanew 
Author-Name: Charles Amo-Yartey 
Author-X-Name-First: Charles 
Author-X-Name-Last: Amo-Yartey 
Author-Name: Therese Turner-Jones 
Author-X-Name-First: Therese 
Author-X-Name-Last: Turner-Jones 
Title: Fiscal policy and the current account: are microstates different? 
Abstract:
	      This article examines the empirical link between fiscal
 policy and the current account focusing on microstates defined as
 countries with a population of less than 2 million between 1970 and 2009.
 This article employs panel regression and Panel Vector Autoregression
 (PVAR) on 155 countries of which 42 are microstates. Panel regression
 results show that a percentage point improvement in the fiscal balance
 improves the current account balance by 0.4 percentage points of Gross
 Domestic Product (GDP). The real effective exchange rate has no
 significant impact on the current account in microstates but the
 coefficient is significant in the global sample. PVAR results show that an
 increase in government consumption results in real exchange appreciation,
 but the effect on the current account after an initial deterioration dies
 out quicker in microstates than in the global sample. The result implies
 that fiscal policy has little effect on the current account in microstates
 beyond its direct impact on imports. Overall, the results suggest that the
 weak relative price effects make the effect of fiscal adjustment on the
 current account much more difficult in microstates.	      
Journal: Applied Economics 
Pages: 4137-4151 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2012.754542 
File-URL: http://hdl.handle.net/10.1080/00036846.2012.754542 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4137-4151




Template-Type: ReDIF-Article 1.0
Author-Name: Kristofer M&#xE5;nsson 
Author-X-Name-First: Kristofer 
Author-X-Name-Last: M&#xE5;nsson 
Author-Name: Ghazi Shukur 
Author-X-Name-First: Ghazi 
Author-X-Name-Last: Shukur 
Author-Name: P&#xE4;r Sj&#xF6;lander 
Author-X-Name-First: P&#xE4;r 
Author-X-Name-Last: Sj&#xF6;lander 
Title: Testing for panel unit roots in the presence of spatial dependency 
Abstract:
	      In this article, the size and power properties of the
 Common-factor Im, Pesaran and Shin (CIPS), Wald (W), Likelihood Ratio (LR)
 and Lagrange Multiplier (LM) tests are investigated when the error term
 follows a spatial error model. In this study, the results from the Monte
 Carlo simulations, first, show that the CIPS test over-estimates the
 nominal size. Second, the simulation results show that the empirical size
 of the W test approaches the nominal size quickly, while the LR and LM
 tests underestimate the null hypothesis in both small and moderate sample
 sizes. Finally, the results also show that even though the LM and LR tests
 under-reject the true-null hypothesis they have higher power than the W
 test.		
Journal: Applied Economics 
Pages: 4152-4159 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.767980 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.767980 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4152-4159




Template-Type: ReDIF-Article 1.0
Author-Name: K. K. G. Wong 
Author-X-Name-First: K. K. G. 
Author-X-Name-Last: Wong 
Title: Trade distance functions and the derivation of inverse demand for imports 
Abstract:
	      This article introduces a new representation of trade
 preferences termed as the trade distance function, which measures the
 maximum amount by which import quantities must be deflated or inflated to
 reach the indifference surface. The properties of this function are
 discussed and employed to derive systems of inverse demand for imported
 goods. We illustrate its usefulness by proposing two new parametric forms
 of trade distance functions. While the trade distance function directly
 yields Hicksian inverse demand functions of imports, they usually lack
 closed-form representations in terms of observable variables. This
 problem, however, need not hinder estimation and could be solved by using
 the numerical inversion estimation method. Results generally indicate that
 the suggested modelling and estimation methods are operationally, implying
 that the trade distance function approach is a promising tool of the
 empirical analysis of import demands subjected to tight theoretical
 conditions.	      
Journal: Applied Economics 
Pages: 4160-4168 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.767979 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.767979 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4160-4168




Template-Type: ReDIF-Article 1.0
Author-Name: William A. Barnett 
Author-X-Name-First: William A. 
Author-X-Name-Last: Barnett 
Author-Name: Isaac Kalonda Kanyama 
Author-X-Name-First: Isaac Kalonda 
Author-X-Name-Last: Kanyama 
Title: Time-varying parameters in the almost ideal demand system and the Rotterdam model: will the best specification please stand up? 
Abstract:
	      This article assesses the ability of the Rotterdam Model (RM)
 and of three versions of the Almost Ideal Demand System (AIDS) to recover
 the time-varying elasticities of a true demand system and to satisfy
 theoretical regularity. Using Monte Carlo simulations, we find that the RM
 performs better than the linear-approximate AIDS at recovering the signs
 of all the time-varying elasticities. More importantly, the RM has the
 ability to track the paths of time-varying income elasticities, even when
 the true values are very high. The linear-approximate AIDS, not only
 performs poorly at recovering the time-varying elasticities but also badly
 approximates the nonlinear AIDS.	   
Journal: Applied Economics 
Pages: 4169-4183 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.768014 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.768014 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4169-4183




Template-Type: ReDIF-Article 1.0
Author-Name: N. Scelles 
Author-X-Name-First: N. 
Author-X-Name-Last: Scelles 
Author-Name: C. Durand 
Author-X-Name-First: C. 
Author-X-Name-Last: Durand 
Author-Name: L. Bonnal 
Author-X-Name-First: L. 
Author-X-Name-Last: Bonnal 
Author-Name: D. Goyeau 
Author-X-Name-First: D. 
Author-X-Name-Last: Goyeau 
Author-Name: W. Andreff 
Author-X-Name-First: W. 
Author-X-Name-Last: Andreff 
Title: Competitive balance versus competitive intensity before a match: is one of these two concepts more relevant in explaining attendance? The case of the French football Ligue 1 over the period 2008--2011 
Abstract:
	      The aim of this article is to investigate the determinants of
 attendance at French football Ligue 1 matches over the period 2008--2011
 with an emphasis on examining the effects of both competitive balance and
 intensity before a match. Competitive balance is measured by the point
 difference between the two teams concerned by a match in the championship.
 Competitive intensity is measured by the point difference for the home
 team in relation to ranks with sporting stakes. Results show that
 competitive balance has an insignificant impact whereas competitive
 intensity has a significantly positive impact. Implications are drawn.     
Journal: Applied Economics 
Pages: 4184-4192 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.770124 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.770124 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4184-4192




Template-Type: ReDIF-Article 1.0
Author-Name: Boon L. Lee 
Author-X-Name-First: Boon L. 
Author-X-Name-Last: Lee 
Author-Name: Andrew C. Worthington 
Author-X-Name-First: Andrew C. 
Author-X-Name-Last: Worthington 
Title: A note on the &#x2018;Linsanity&#x2019; of measuring the relative efficiency of National Basketball Association guards 
Abstract:
	      This note examines the productive efficiency of 62 starting
 guards during the 2011/12 National Basketball Association (NBA) season.
 This period coincides with the phenomenal and largely unanticipated
 performance of New York Knicks&#x2019; starting point guard Jeremy Lin and
 the attendant public and media hype known as <italic>Linsanity</italic>.
 We employ a data envelopment analysis (DEA) approach that includes
 allowance for an undesirable output, here turnovers per game, with the
 desirable outputs of points, rebounds, assists, steals and blocks per game
 and an input of minutes per game. The results indicate that depending upon
 the specification, between 29% and 42% of NBA guards are fully efficient,
 including Jeremy Lin, with a mean inefficiency of 3.7% and 19.2%. However,
 while Jeremy Lin is technically efficient, he seldom serves as a benchmark
 for inefficient players, at least when compared with established players
 such as Chris Paul and Dwayne Wade. This suggests the uniqueness of Jeremy
 Lin's productive solution and may explain why his unique style of play,
 encompassing individual brilliance, unselfish play and team leadership, is
 of such broad public appeal.	       
Journal: Applied Economics 
Pages: 4193-4202 
Issue: 29 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.770125 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.770125 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4193-4202




Template-Type: ReDIF-Article 1.0
Author-Name: Josep Llu񈁃arrion-i-Silvestre 
Author-X-Name-First: Josep Llu񈀍
Author-X-Name-Last: Carrion-i-Silvestre 
Author-Name: Emma M. Iglesias 
Author-X-Name-First: Emma M. 
Author-X-Name-Last: Iglesias 
Title: Editorial 
Journal: Applied Economics 
Pages: 4203-4203 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.778947 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778947 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4203-4203




Template-Type: ReDIF-Article 1.0
Author-Name: Jos頍ar𨁁rias 
Author-X-Name-First: Jos頍ar𨀍
Author-X-Name-Last: Arias 
Title: Preface 
Journal: Applied Economics 
Pages: 4204-4204 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.778949 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778949 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4204-4204




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno S. Frey 
Author-X-Name-First: Bruno S. 
Author-X-Name-Last: Frey 
Author-Name: Jana Gallus 
Author-X-Name-First: Jana 
Author-X-Name-Last: Gallus 
Title: Political economy of happiness 
Abstract:
				 Happiness research has been a great
 success by yielding new and important insights. These results are often
 used in a technocratic manner: Governments should maximize, or at least
 raise, the subjective well-being of the population measured by the
 national happiness index. Yet the government has strong incentives and a
 wide range of possibilities to manipulate this index to its advantage.
 Happiness policy must be part of the normal democratic process where
 divergent views are considered and aggregated. In particular, competition
 between parties is a prerequisite for the insights from happiness research
 put to the benefit of the citizens.			
Journal: Applied Economics 
Pages: 4205-4211 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.778950 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778950 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4205-4211




Template-Type: ReDIF-Article 1.0
Author-Name: St鰨ane Bonhomme 
Author-X-Name-First: St鰨ane 
Author-X-Name-Last: Bonhomme 
Author-Name: Laura Hospido 
Author-X-Name-First: Laura 
Author-X-Name-Last: Hospido 
Title: Earnings inequality in Spain: new evidence using tax data 
Abstract:
				 We use tax files from 2004 to 2010 to
 document the recent evolution of earnings inequality in Spain. We find
 that inequality went in parallel with the evolution of the unemployment
 rate during the period. This evolution is consistent with the evidence
 from Social Security records recently documented in Bonhomme and Hospido
 (2012). Quantitatively, the 90/10 percentile ratio of daily earnings
 experienced a 10% increase between 2007 and 2010, which is partly but not
 fully explained by changes in labour force composition. We also use the
 tax data to study the evolution of the gender earnings gap, and find that
 it has decreased throughout the distribution during the period. Lastly, we
 tentatively exploit the panel dimension of the data to explore the
 permanent and temporary dimensions of Spanish inequality.		    
Journal: Applied Economics 
Pages: 4212-4225 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.781261 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.781261 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4212-4225




Template-Type: ReDIF-Article 1.0
Author-Name: Ma del Mar Salinas-Jim鮥z 
Author-X-Name-First: Ma del Mar 
Author-X-Name-Last: Salinas-Jim鮥z 
Author-Name: Marta Rahona-L󰥺 
Author-X-Name-First: Marta 
Author-X-Name-Last: Rahona-L󰥺 
Author-Name: In鳠P. Murillo-Huertas 
Author-X-Name-First: In鳠P. 
Author-X-Name-Last: Murillo-Huertas 
Title: Gender wage differentials and educational mismatch: an application to the Spanish case 
Abstract:
				 This article aims to analyse gender wage
 differentials in Spain by taking into account the levels of educational
 attainment and by studying whether the educational mismatch affects the
 gender wage gap. Focusing on returns to education, evidence is found on
 the existence of educational mismatch and on its contribution to determine
 wages, with women suffering greater wage penalties that are associated
 with educational mismatch. Furthermore, although the gender wage gap is
 lower for individuals with low educational levels, we find that the part
 of this gap due to differences in returns is greater in this group. On the
 contrary, the gender gap is greater among highly-educated workers, but in
 this case most of the wage differentials are due to differences in
 productive characteristics. In any case, our results suggest that gender
 wage discrimination tends to be greater for those workers who show
 educational mismatch.			 
Journal: Applied Economics 
Pages: 4226-4235 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.781260 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.781260 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4226-4235




Template-Type: ReDIF-Article 1.0
Author-Name: K. Sommerfeld 
Author-X-Name-First: K. 
Author-X-Name-Last: Sommerfeld 
Title: Higher and higher? Performance pay and wage inequality in Germany 
Abstract:
				 Performance pay is of growing importance
 to the wage structure as it applies to a rising share of employees. At the
 same time, wage dispersion is growing continuously. This leads to the
 question of how is the growing use of performance pay schemes related to
 the increase in wage inequality? German Socio-Economic Panel (SOEP) data
 for the years 1984<bold>--</bold>2009 confirm the large increase in the
 application of performance pay schemes. This in turn led to an upward
 shift of the wage distribution by about one log point. However, it did not
 contribute to the growth in wage inequality. Even though wage inequality
 grew within the group of employees who receive performance pay, it grew
 even more so within the group who do not. Still, the wage difference
 between both wage schemes remained flat over the distribution. The
 empirical analysis employs sequential decompositions in a quantile
 regression framework.			
Journal: Applied Economics 
Pages: 4236-4247 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.783682 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.783682 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4236-4247




Template-Type: ReDIF-Article 1.0
Author-Name: A. Fa𨐠
Author-X-Name-First: A. 
Author-X-Name-Last: Fa𨐠
Author-Name: J. L󰥺-Rodr򍑥z 
Author-X-Name-First: J. 
Author-X-Name-Last: L󰥺-Rodr򍑥z 
Author-Name: L. Varela-Candamio 
Author-X-Name-First: L. 
Author-X-Name-Last: Varela-Candamio 
Title: Nontaxable income and necessary consumption: the Rousseau's paradox of fiscal egalitarianism 
Abstract:
				 This article compares a tax method
 featuring flat rates and fixed allowances equal for all taxpayers (Surplus
 Income Tax Method (SITM) procedure) with a tax method featuring also flat
 rates and increasing personal allowances (IPAs) to meet the amounts of
 necessary consumption required by the different living standards
 (Discretionary Income Tax Method (DITM) procedure). Our results show that
 the DITM procedure generates an after-tax income distribution less unequal
 and superior in terms of social welfare. Moreover, the assumption (for
 comparison purposes) of identical total tax revenues leads to the
 corollary that the flat tax rate under the DITM is necessarily larger than
 the one under the SITM; being thus, the former taxmethod is more
 progressive than the latter. These results imply an obvious paradox
 considering the commonly accepted principle that basic necessities are the
 same for everyone (Rousseau, 1755). Based on the results obtained in this
 article, we have labelled this paradox as the Rousseau's paradox of fiscal
 egalitarianism.		   
Journal: Applied Economics 
Pages: 4248-4259 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.781262 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.781262 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4248-4259




Template-Type: ReDIF-Article 1.0
Author-Name: Emma M. Iglesias 
Author-X-Name-First: Emma M. 
Author-X-Name-Last: Iglesias 
Author-Name: J. Atilano Pena L󰥺 
Author-X-Name-First: J. Atilano Pena 
Author-X-Name-Last: L󰥺 
Author-Name: Jos頍anuel Sᮣhez S᮴os 
Author-X-Name-First: Jos頍anuel Sᮣhez 
Author-X-Name-Last: S᮴os 
Title: Evolution over time of the determinants of preferences for redistribution and the support for the welfare state 
Abstract:
				 The objective of this article is to
 analyse the determinants of preferences for redistribution in Spain both
 at an aggregate and regional level. Using country level data, we put to
 the test the Alesina and Angeletos' (2005) hypothesis, the strong and
 positive relationship between the 'belief that luck determines income' and
 the support for redistributive policies. As an innovative contribution, we
 contrast this hypothesis using a set of panel data models with
 <italic>regional</italic> and <italic>time</italic> fixed effects. Our
 main finding is the existence of a structural change in preferences
 formation for redistribution in Spain between 1995 and 2007. Furthermore,
 the empirical results provide some evidence suggesting that (1) the belief
 that society is unfair have a moderate effect on the individuals'
 preferences for redistribution and (2) regional beliefs in Spanish regions
 are not equally important when determining demand for redistribution.	    
Journal: Applied Economics 
Pages: 4260-4274 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.778948 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778948 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4260-4274




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Good 
Author-X-Name-First: Michael 
Author-X-Name-Last: Good 
Title: Do immigrant outflows lead to native inflows? An empirical analysis of the migratory responses to US state immigration legislation 
Abstract:
				 I estimate the impact on internal
 migration for 52 different demographic groups of the recent influx of
 state omnibus immigration laws targeting undocumented immigrants in the
 United States. I find evidence that while the demographic groups
 pinpointed as having higher percentages of undocumented immigrants
 certainly experience population and employment 'outflows' from states
 implementing these immigration laws, there is a lack of associated
 'inflows' for those demographic groups identified by economic theory as
 being probable substitutes for undocumented immigrants. Several segments
 designated as probable substitutes actually experience an adverse effect
 on population and employment. This finding provides rigorous empirical
 backing to existing anecdotal evidence of the same cross-state migratory
 phenomenon, resulting in clear policy implications in relation to the
 ongoing debate over immigration.		    
Journal: Applied Economics 
Pages: 4275-4297 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.786802 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.786802 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4275-4297




Template-Type: ReDIF-Article 1.0
Author-Name: O. Alonso-Villar 
Author-X-Name-First: O. 
Author-X-Name-Last: Alonso-Villar 
Author-Name: C. Grad󸀍
Author-X-Name-First: C. 
Author-X-Name-Last: Grad󸀍
Author-Name: C. del R􈀍
Author-X-Name-First: C. 
Author-X-Name-Last: del R􈀍
Title: Occupational segregation of Hispanics in US metropolitan areas 
Abstract:
				 This article quantifies the occupational
 segregation of Hispanics in the largest Hispanic enclaves of the US. Using
 a procedure based on propensity score, it explores the role played by the
 characteristics of Hispanics, such as country of origin and English
 fluency, in explaining the variation of segregation across metropolitan
 areas. Regarding the characteristics of the metropolitan areas, a
 regression analysis shows that the segregation of Hispanic workers tends
 to be higher in relatively smaller and highly educated labour markets,
 with a lower proportion of Hispanics, a higher growth of recent
 foreign-born Hispanics and in areas where they face cooler feelings from
 the rest of the population.			    
Journal: Applied Economics 
Pages: 4298-4307 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.778951 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778951 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4298-4307




Template-Type: ReDIF-Article 1.0
Author-Name: C. Duvivier 
Author-X-Name-First: C. 
Author-X-Name-Last: Duvivier 
Author-Name: S. Li 
Author-X-Name-First: S. 
Author-X-Name-Last: Li 
Author-Name: M.-F. Renard 
Author-X-Name-First: M.-F. 
Author-X-Name-Last: Renard 
Title: Are workers close to cities paid higher nonagricultural wages in rural China? 
Abstract:
				 It is widely recognized that
 nonagricultural earnings are crucial for the welfare of rural households
 in developing countries. In this study, we investigate whether workers
 close to cities are paid higher nonagricultural wages than workers in
 outlying rural areas. We find that workers close to urban areas not only
 benefit from more opportunities to engage in nonagricultural activities,
 but also from better paid jobs. In addition, we provide evidence on the
 transmission channels at work. The issue of spatial differences in
 nonagricultural earnings that we highlight is extremely serious for rural
 China where, because of the strong institutional restrictions on labour
 mobility, living conditions in an individual's birthplace still
 significantly affect his well-being.		       
Journal: Applied Economics 
Pages: 4308-4322 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.778953 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778953 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4308-4322




Template-Type: ReDIF-Article 1.0
Author-Name:  Garc𨀍
Author-X-Name-First:  
Author-X-Name-Last: Garc𨀍
Author-Name:  Prieto-Alaiz 
Author-X-Name-First:  
Author-X-Name-Last: Prieto-Alaiz 
Author-Name:  Sim󮠍
Author-X-Name-First:  
Author-X-Name-Last: Sim󮠍
Title: The influence of macroeconomic factors on personal income distribution in developing countries: a parametric modelling approach 
Abstract:
				 This article examines the influence of
 macroeconomic factors on personal income distribution in developing
 countries using a parametric modelling approach. The technique is based on
 the selection and estimation of a theoretical parametric model (a Dagum
 distribution) which fits accurately to the empirical income distributions
 of the countries examined. The parameters of the model specifically
 related to inequality are subsequently used as dependent variables in
 econometric models in order to examine the impact that certain
 macroeconomic variables (GDP growth, inflation, employment and real
 interest rates) have on inequality. The results reveal that GDP growth,
 employment rate and real interest rate are the macroeconomic factors with
 greater impact in shaping personal income distribution in developing
 countries.		     
Journal: Applied Economics 
Pages: 4323-4334 
Issue: 30 
Volume: 45 
Year: 2013 
Month: 10 
X-DOI: 10.1080/00036846.2013.778952 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778952 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4323-4334




Template-Type: ReDIF-Article 1.0
Author-Name: David Greenberg 
Author-X-Name-First: David 
Author-X-Name-Last: Greenberg 
Author-Name: Johanna Walter 
Author-X-Name-First: Johanna 
Author-X-Name-Last: Walter 
Author-Name: Genevieve Knight 
Author-X-Name-First: Genevieve 
Author-X-Name-Last: Knight 
Title: A cost-benefit analysis of the random assignment UK Employment Retention and Advancement Demonstration 
Abstract:
				 This article presents a cost-benefit
 analysis of Britain's Employment Retention and Advancement (ERA)
 demonstration, which was evaluated through the first large-scale
 randomized control trial in the UK. ERA used a combination of job coaching
 and financial incentives in attempting to help long-term unemployed men
 and low-income lone parents sustain employment and progress in work once
 they were employed. Using both administrative and survey data, ERA's
 effects on benefits and costs were estimated through impact analyses,
 which exploited the experimental design. The findings indicated that ERA
 was cost beneficial for long-term unemployed adult men, but not for lone
 parents. The key findings appear robust to sensitivity tests. Uncertainty,
 as implied by the SEs of the estimated impacts, was addressed through a
 Monte Carlo analysis, an approach seldom previously used in cost-benefit
 analyses of social programs.			     
Journal: Applied Economics 
Pages: 4335-4354 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.776664 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.776664 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4335-4354




Template-Type: ReDIF-Article 1.0
Author-Name: Benoit Dostie 
Author-X-Name-First: Benoit 
Author-X-Name-Last: Dostie 
Author-Name: Lene Kromann 
Author-X-Name-First: Lene 
Author-X-Name-Last: Kromann 
Title: New estimates of labour supply elasticities for married women in Canada 1996--2005 
Abstract:
				 In this article, we estimate income and
 substitution labour supply and participation elasticities for Canadian
 married women using data from the Survey of Labour and Income Dynamics
 1996--2005. We use the Canadian Tax and Credit Simulator (CTaCS) and
 detailed information on the structure of income at the household level to
 compute the marginal tax rates faced by each individual. We then use these
 marginal tax rates to compute net own-wage, spouse-wage, and nonlabour
 income. We show how the magnitude of the estimated elasticities varies
 depending on whether net or gross wages and income are used in the
 estimation procedure, and quantify biases caused by using average tax
 rates instead of marginal tax rates. Finally, because marginal tax rates
 vary significantly over the sample, we use quantile regressions to compare
 elasticities at different points of the hours distribution. Overall, our
 results show that public policies now have, on average, less scope for
 influencing hours of work than 10 years ago. However, the quantile results
 show that wives working fewer hours per week are more sensitive to changes
 in their own or spouses' wages.			
Journal: Applied Economics 
Pages: 4355-4368 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.776663 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.776663 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4355-4368




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Ruixin Zhang 
Author-X-Name-First: Ruixin 
Author-X-Name-Last: Zhang 
Title: The J-curve: evidence from commodity trade between UK and China 
Abstract:
				 China is often accused of manipulating its
 currency to gain international competitiveness. Previous studies have
 tried to address this issue by investigating the impact of yuan
 depreciation on China's trade balance. Not only have they failed to
 establish the link between the Chinese exchange rate and its trade balance
 with the rest of the world but also between China and her major trading
 partners. In this article, we consider the China--UK trade balance and
 disaggregate their trade flows by commodity. Out of the 47 industries
 considered, we show that the real depreciation has favourable short-run
 effects in most industries. However, the short-run effects last into the
 long run only in seven cases.			   
Journal: Applied Economics 
Pages: 4369-4378 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.783680 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.783680 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4369-4378




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses 
Author-X-Name-First: Philip Hans 
Author-X-Name-Last: Franses 
Author-Name: Bert De Groot 
Author-X-Name-First: Bert 
Author-X-Name-Last: De Groot 
Title: Do commercial real estate prices have predictive content for GDP? 
Abstract:
				 Using a uniquely compiled database
 concerning rental prices of commercial real estates, which are property of
 the largest broker in the Netherlands, we examine whether these prices
 have predictive value for quarterly economic growth. In contrast to
 related studies, we document that the mean price contains no relevant
 information, whereas other properties of the price distributions have. We
 show that these distributions can be described by mixtures of two
 distributions, reflecting low-end and high-end price segments. Our main
 findings are that higher economic growth is predictable from more new
 buildings being rented, more variation in the price levels and a larger
 size of the low-price segment, while lower economic growth emerges when
 the differences in prices between high-end and low-end segments increase
 and when the average price level in the low-price segment increases.	    
Journal: Applied Economics 
Pages: 4379-4384 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.783681 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.783681 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4379-4384




Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim 
Author-X-Name-First: Dong-Hyeon 
Author-X-Name-Last: Kim 
Author-Name: Shu-Chin Lin 
Author-X-Name-First: Shu-Chin 
Author-X-Name-Last: Lin 
Title: Interrelationships among banks, stock markets and economic growth: an empirical investigation 
Abstract:
				 This article utilizes a simultaneous
 equations model to study the relationships among economic growth, banking
 and stock market development. In contrast to conventional instrumental
 variable approach, we implement the analysis via the methodology of
 identification through heteroscedasticity. Using Beck and Levine (2004)
 dataset, we find that each of the three variables interacts in important
 ways. While both are conducive to economic growth, banking development
 matters more for growth in low-income countries and stock market
 development is more favourable to growth in high-income or low-inflation
 ones. The data also reveal coexistence of a positive effect of banking
 development on stock market development and a negative effect of stock
 market development on banking development. Besides, the feedback effects
 of growth on both banking and stock market development are found.	    
Journal: Applied Economics 
Pages: 4385-4394 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.786165 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.786165 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4385-4394




Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨁌orena Mar𑁥l Cristo 
Author-X-Name-First: Mar𨁌orena 
Author-X-Name-Last: Mar𑁥l Cristo 
Author-Name: Marta G󭥺-Puig 
Author-X-Name-First: Marta 
Author-X-Name-Last: G󭥺-Puig 
Title: Pass-through in dollarized countries: should Ecuador abandon the US dollar? 
Abstract:
				 In this article, we examine the
 convenience of dollarization for Ecuador today. As Ecuador is strongly
 integrated financially and commercially with the United States, the
 exchange rate pass-through should be zero. However, we sustain that rising
 rates of imports from trade partners other than the United States and
 subsequent real effective exchange rate depreciations are causing the
 pass-through to move away from zero. Here, in the framework of the Vector
 Error Correction Model, we analyse the impulse response function and
 variance decomposition of the inflation variable. We show that the
 developing economy of Ecuador is importing inflation from its main trading
 partners, most of them emerging countries with appreciated currencies. We
 argue that if Ecuador recovered both its monetary and exchange rate
 instruments, it would be able to fight against inflation. We believe such
 an analysis could be extended to other countries with pegged exchange rate
 regimes.		       
Journal: Applied Economics 
Pages: 4395-4411 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.786166 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.786166 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4395-4411




Template-Type: ReDIF-Article 1.0
Author-Name: Frank den Butter 
Author-X-Name-First: Frank 
Author-X-Name-Last: den Butter 
Author-Name: Abdessalam Es-Saghir 
Author-X-Name-First: Abdessalam 
Author-X-Name-Last: Es-Saghir 
Title: Productivity effects of trade and product innovations: an empirical analysis for 13 OECD countries 
Abstract:
				 This article distinguishes two sources of
 productivity increases, namely product/process innovations and trade
 innovations. An empirical analysis for 13 OECD countries shows that
 product/process innovations, represented by aggregated investments in
 Research and Development (R&D), are major determinants for productivity
 growth in large industrial countries, whereas trade innovations,
 represented by export intensity, seem to contribute most to productivity
 in trade-oriented economies. These trade innovations relate to the ability
 to reduce transaction costs so that these trading nations specialize in
 the organization of production in this era of globalization where the
 production chain is split up in more and more component parts. 	    
Journal: Applied Economics 
Pages: 4412-4418 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.786167 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.786167 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4412-4418




Template-Type: ReDIF-Article 1.0
Author-Name: Dilip Nachane 
Author-X-Name-First: Dilip 
Author-X-Name-Last: Nachane 
Author-Name: Amlendu Kumar Dubey 
Author-X-Name-First: Amlendu Kumar 
Author-X-Name-Last: Dubey 
Title: Trend and cyclical decoupling: new estimates based on spectral causality tests and wavelet correlations 
Abstract:
				 The issue of <italic>decoupling</italic>
 of emerging market economies (EMEs) (especially in the Asian region) from
 the developments in advanced economies has become a subject of lively
 debate in recent years. Basically, decoupling seems to comprise three
 sub-hypotheses: (i) <italic>growth spillovers</italic> from advanced
 countries to EMEs decreasing progressively in importance, (ii) business
 cycles in EMEs becoming less <italic>synchronized</italic> with those of
 the advanced world and (iii) strengthening of <italic>growth
 spillovers</italic> and <italic>cyclical synchronization</italic> among
 the EMEs as a group. The received literature fails to distinguish
 adequately between the trend and cyclical aspects of the decoupling
 relationship. We resort to two frequency domain methods (nonstationary
 spectral causality testing and wavelet correlations), which seem to offer
 a neat separation of trend and cyclical decoupling. Based on a sample of
 seven EMEs from the Asian region (including the two large EMEs -- China
 and India), we uncover strong evidence favouring both <italic>trend and
 cyclical decoupling</italic>.			       
Journal: Applied Economics 
Pages: 4419-4428 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.788781 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788781 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4419-4428




Template-Type: ReDIF-Article 1.0
Author-Name: Vicki L. Bogan 
Author-X-Name-First: Vicki L. 
Author-X-Name-Last: Bogan 
Title: Household investment decisions and offspring gender: parental accounting 
Abstract:
				 Numerous behavioural factors have been
 identified as having an impact on household stockholding decisions. Given
 there is both theoretical and empirical evidence to support the premise
 that offspring gender can influence specific types of parental
 preferences, I test the theory that offspring gender has an effect on
 parental investment decision-making. I find that offspring gender does
 influence household stock market participation. Specifically, I find that
 having only female offspring can significantly increase the probability of
 stockholding. Given stockholding can have large effects on household
 wealth levels and that family wealth levels affect intergenerational
 transfers, this finding could have important implications for
 understanding distributional welfare issues.		       
Journal: Applied Economics 
Pages: 4429-4442 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.788782 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788782 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4429-4442




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Gius 
Author-X-Name-First: Mark 
Author-X-Name-Last: Gius 
Title: The effects of merit pay on teacher job satisfaction 
Abstract:
				 The purpose of this study is to determine
 if the existence of a district-level merit pay system has any effects on
 teacher job satisfaction. Using a large sample of public school teachers
 from the year 2007, the results of this study suggest that teachers who
 work in districts that use a merit pay system are no less satisfied with
 their jobs than are other teachers; these results are consistent for both
 an ordered probit model and a two-stage analysis. Although the effect of
 merit pay on overall job satisfaction was insignificant, teachers in merit
 pay districts were less enthusiastic, did not think teaching was
 important, and were more likely to leave for better pay. However, in
 examining a sample of teachers who worked only in merit pay districts, it
 was found that teachers who received merit pay were more satisfied overall
 with their jobs than were teachers who did not receive merit pay.	    
Journal: Applied Economics 
Pages: 4443-4451 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.788783 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788783 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4443-4451




Template-Type: ReDIF-Article 1.0
Author-Name: Hoanjae Park 
Author-X-Name-First: Hoanjae 
Author-X-Name-Last: Park 
Author-Name: Walter N. Thurman 
Author-X-Name-First: Walter N. 
Author-X-Name-Last: Thurman 
Title: A Bayesian approach to aggregation in demand systems: smoothing with perfect substitution priors 
Abstract:
				 Demand analysis requires aggregation of
 commodities. Some are imposed at the data collection level, leaving some
 for the estimation level. When data are collected, the implicit assumption
 underlying the aggregation is perfect substitutability: one gallon of
 gasoline is viewed by consumers as equivalent to another gallon; hence,
 the two are added together. While such aggregation can be carried out
 further by the data analyst, it is difficult to incorporate perfect
 substitutability into the estimation of direct demand systems. Perfect
 substitution in that context implies discontinuous demand functions, which
 are not nested within standard empirical demand systems. Perfect
 substitution is much more easily handled in a system of inverse demands,
 though an empirical method to impose perfect substitutability in an
 inverse demand system has not previously appeared in the literature. In
 this article, we develop such a method, which allows perfect
 substitutability to be imposed as a prior restriction. We use Leamer's
 information contract curve as a tool to flexibly impose the substitution
 restriction and to investigate consistency between the data and prior. We
 illustrate the method with an application to inverse demands for fish in
 Korea. 		     
Journal: Applied Economics 
Pages: 4452-4462 
Issue: 31 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.788784 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788784 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4452-4462




Template-Type: ReDIF-Article 1.0
Author-Name: Jos頉. Castillo-Manzano 
Author-X-Name-First: Jos頉. 
Author-X-Name-Last: Castillo-Manzano 
Author-Name: Lourdes Lopez-Valpuesta 
Author-X-Name-First: Lourdes 
Author-X-Name-Last: Lopez-Valpuesta 
Author-Name: Manuel Marchena-G󭥺 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Marchena-G󭥺 
Author-Name: Diego J. Pedregal 
Author-X-Name-First: Diego J. 
Author-X-Name-Last: Pedregal 
Title: How much does water consumption drop when each household takes charge of its own consumption? The case of the city of Seville 
Abstract:
				 Making individuals take charge of their
 own domestic water consumption is one of the measures used to reduce the
 growing demand for this resource and to achieve sustainable consumption
 compatible with the goal of equity. The use of individual meters instead
 of communal meters and fixing tariffs by inhabitant rather than by
 household are two measures aimed at achieving these objectives. This
 article assesses the measures put in place in the Seville metropolitan
 area during the last 20 years with an unobserved component model set up in
 a state-space framework estimated using maximum likelihood. Water
 consumption elasticity to individual meters has changed from --0.307 to
 --1.317 with the introduction of per inhabitant tariffs, which
 demonstrates that there are water-saving synergies when the two measures
 are implemented together. The reductions in water consumption achieved
 with these measures are also longer lasting than the changes in
 consumption habits during the frequent droughts in Seville.		    
Journal: Applied Economics 
Pages: 4465-4473 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.788785 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788785 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4465-4473




Template-Type: ReDIF-Article 1.0
Author-Name: Boya Liu 
Author-X-Name-First: Boya 
Author-X-Name-Last: Liu 
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Title: Effects of trade diversion and trade creation of MERCOSUR on US and world apple markets 
Abstract:
				 Apples are the third most valuable fruit
 in the United States and account for 18% of US fruit exports. Chile is a
 major competitor to the United States in the MERCOSUR market, since it is
 one of the leading apple producing countries and enjoys the tariff
 reductions as a member of MERCOSUR. Consequently, Chilean exports displace
 US exports in MERCOSUR. In addition, other MERCOSUR members import more
 from lower-cost Chile, leading to a reduction in production and an
 increase in consumption in these countries. This study develops a
 theoretical and an empirical model of world apple market to quantify the
 trade diversion and trade creation effects of the MERCOSUR free trade
 agreement and to estimate the welfare impacts. 		   
Journal: Applied Economics 
Pages: 4474-4486 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.788786 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4474-4486




Template-Type: ReDIF-Article 1.0
Author-Name: Ant󮩯 Afonso 
Author-X-Name-First: Ant󮩯 
Author-X-Name-Last: Afonso 
Author-Name: Miguel St. Aubyn 
Author-X-Name-First: Miguel 
Author-X-Name-Last: St. Aubyn 
Title: Public and private inputs in aggregate production and growth: a cross-country efficiency approach 
Abstract:
				 In a cross section of OECD countries, we
 replace the macroeconomic production function by a production possibility
 frontier, total factor productivity being the composite effect of
 efficiency scores and possibility frontier changes. We consider, for the
 periods 1970, 1980, 1990 and 2000 one output -- GDP per worker -- and
 three inputs -- human capital, public physical capital per worker and
 private physical capital per worker. We use a semi-parametric analysis,
 computing Malmquist productivity indexes, and we also resort to stochastic
 frontier analysis. Results show that private capital is important for
 growth, although public and human capital also contribute positively. A
 governance indicator, a nondiscretionary input, explains inefficiency.
 Better governance helps countries to achieve a better performance.
 Nonparametric and parametric results coincide rather closely on the
 movements of the countries <italic>vis-୶is</italic> the possibility
 frontier and on their relative distances to the frontier.		    
Journal: Applied Economics 
Pages: 4487-4502 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.791018 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.791018 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4487-4502




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Inyeob Ji 
Author-X-Name-First: Philip Inyeob 
Author-X-Name-Last: Ji 
Author-Name: Sangbae Kim 
Author-X-Name-First: Sangbae 
Author-X-Name-Last: Kim 
Title: Mean-reversion in closed-end fund discount: evidence from half-life 
Abstract:
				 This article examines the mean-reversion
 properties of the discount on UK and US closed-end funds. While the
 discounts are tested I(1), strong statistical evidence of mean-reversion
 is ascertained by bias-corrected bootstrap half-life estimates. The
 estimates also indicate that equity-based funds converge to the
 steady-state level faster than fixed income funds. In addition, although
 an equilibrium pricing condition postulates an inverse relation between
 half-life and the discount size, correlation estimates fail to show strong
 support for the relation.			   
Journal: Applied Economics 
Pages: 4503-4515 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.791019 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.791019 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4503-4515




Template-Type: ReDIF-Article 1.0
Author-Name: Michele Raitano 
Author-X-Name-First: Michele 
Author-X-Name-Last: Raitano 
Author-Name: Francesco Vona 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Vona 
Title: Peer heterogeneity, school tracking and students' performances: evidence from PISA 2006 
Abstract:
				 This paper analyses the interaction
 between school-tracking policies and peer effects in OECD countries. Using
 the Programme for International Student Assessment (PISA) 2006 data set,
 we show that linear peer effects are slightly concave-shaped in both
 early-tracking and comprehensive educational systems, but generally
 stronger in the early-tracking one. Second, and more interestingly, the
 effect of peer heterogeneity goes in opposite directions in the two
 systems. In both student- and school-level estimates, peer heterogeneity
 reduces students' achievements in the comprehensive system while it has a
 positive impact in the early-tracking one. This reversal effect is robust
 to different definitions of early-tracking system, to the inclusion of
 pseudo-school fixed effects and to the exclusion of outlier countries.
 Finally, peer effects are stronger for low-ability students in both groups
 of countries.			      
Journal: Applied Economics 
Pages: 4516-4532 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.791020 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.791020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4516-4532




Template-Type: ReDIF-Article 1.0
Author-Name: Lior Fink 
Author-X-Name-First: Lior 
Author-X-Name-Last: Fink 
Author-Name: Yossi Lichtenstein 
Author-X-Name-First: Yossi 
Author-X-Name-Last: Lichtenstein 
Author-Name: Simon Wyss 
Author-X-Name-First: Simon 
Author-X-Name-Last: Wyss 
Title:  					<italic>Ex post</italic> adaptations and hybrid contracts in software development services 
Abstract:
				 We follow the recent literature on
 <italic>ex post</italic> adaptations in procurement and argue that highly
 volatile specifications result in multiple variations of fixed price (FP)
 and time and materials (T&M) contracts. Specifically, placing a cap on
 specification change in FP contracts prevents specification volatility,
 similar to the way that placing a cap on the price in T&M contracts
 prevents price escalation. We argue that these hybrid mechanisms are
 particularly important in software development contracting, a new critical
 business capability involving frequent and costly <italic>ex post</italic>
 adaptations to specification change. The level of completeness in these
 contractual archetypes is hypothesized to be determined by contracting
 costs and benefits, where costs are related to project uncertainty and
 benefits are related to the likelihood of vendor opportunism. We test this
 hypothesis with a unique data set of 270 software development contracts
 entered into by a leading international bank. The analysis confirms the
 existence of multiple hybrid contracts that mitigate both price escalation
 and specification volatility. It also shows that contracting costs and
 benefits explain more variance in contract choice when these hybrids are
 included, uncovering the detailed mechanisms used to curb opportunism when
 the vendor is less familiar to the client.		     
Journal: Applied Economics 
Pages: 4533-4544 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.791021 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.791021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4533-4544




Template-Type: ReDIF-Article 1.0
Author-Name: Ant󮩯 Afonso 
Author-X-Name-First: Ant󮩯 
Author-X-Name-Last: Afonso 
Author-Name: Lu񈁆. Costa 
Author-X-Name-First: Lu񈁆. 
Author-X-Name-Last: Costa 
Title: Market power and fiscal policy in OECD countries 
Abstract:
				 We compute average markups as a measure of
 market power throughout time and study their interaction with fiscal
 policy and macroeconomic variables in a VAR framework. From
 impulse-response functions, the results, with annual data for a set of 14
 OECD countries, show that the markup (i) depicts a pro-cyclical behaviour
 with productivity shocks and (ii) a counter-cyclical behaviour with fiscal
 spending shocks. We also use a PVAR, increasing the efficiency in the
 estimations, which confirms the country-specific results.		    
Journal: Applied Economics 
Pages: 4545-4555 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795275 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795275 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4545-4555




Template-Type: ReDIF-Article 1.0
Author-Name: V񍁯r E. Barrios 
Author-X-Name-First: V񍁯r E. 
Author-X-Name-Last: Barrios 
Author-Name: M. Consuelo Colom 
Author-X-Name-First: M. Consuelo 
Author-X-Name-Last: Colom 
Author-Name: M. Cruz Mol鳠
Author-X-Name-First: M. Cruz 
Author-X-Name-Last: Mol鳠
Title: Life cycle and housing decisions: a comparison by age cohorts 
Abstract:
				 The use of decomposition methodologies
 when the involved variable is continuous is not common in the literature.
 This article uses this methodology, together with other decomposition
 methodologies, to explain how age can influence on housing decisions. In
 particular, we use Spanish data to study whether the age of the
 householder plays a significant role in influencing household decisions
 with respect to housing tenure and demand. From the comparison of housing
 decisions between different groups of households classified by the age of
 the householders, we conclude that age plays the primary role in
 explaining the gap between households regarding tenure choice, while it
 shares its importance with other covariates of the model in the housing
 demand decision.		    
Journal: Applied Economics 
Pages: 4556-4568 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795276 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795276 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4556-4568




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: Jeff Luckstead 
Author-X-Name-First: Jeff 
Author-X-Name-Last: Luckstead 
Author-Name: Ron Mittelhammer 
Author-X-Name-First: Ron 
Author-X-Name-Last: Mittelhammer 
Title: Econometric issues related to identification of the market power parameter 
Abstract:
				 This study demonstrates the crucial role
 the specification of the cost function plays in identifying the market
 power parameter in autarky models. For constant marginal cost or marginal
 cost with quantity interacting with input prices, the market power
 parameter in autarky models in identified without a rotation of the demand
 curve. If a comodity is sold in both domestic and foreign markets, the
 market power parameters are identified regardless of the specific form of
 the marginal cost and demand specifications.			
Journal: Applied Economics 
Pages: 4569-4574 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795277 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795277 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4569-4574




Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula 
Author-X-Name-First: Richard J. 
Author-X-Name-Last: Cebula 
Author-Name: J. R. Clark 
Author-X-Name-First: J. R. 
Author-X-Name-Last: Clark 
Title: An extension of the Tiebout hypothesis of voting with one's feet: the Medicaid magnet hypothesis 
Abstract:
				 This study empirically extends the Tiebout
 hypothesis of 'voting with one's feet' in two ways. First, it provides
 updated estimates using net migration data for the period 2000--2008.
 Second, in addition to investigating variables reflecting public education
 outlays, property taxation and income taxation, it investigates whether
 migrants are attracted to states with higher Medicaid benefits per
 recipient. The latter hypothesis is referred to as the 'Medicaid magnet
 hypothesis'. The analysis includes three economic variables, three quality
 of life variables and three Tiebout-type factors <italic>in addition
 to</italic> Medicaid benefits. Results indicate that consumer voters were
 attracted to states with higher per pupil public school spending, lower
 property and income tax <italic>rates</italic>, and that certain
 consumer-voters may be attracted to states that offer higher levels of
 Medicaid benefits.			 
Journal: Applied Economics 
Pages: 4575-4583 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795278 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795278 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4575-4583




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Ken Hung 
Author-X-Name-First: Ken 
Author-X-Name-Last: Hung 
Title: Revisiting purchasing power parity in Latin America: sequential panel selection method 
Abstract:
				 This study applies the Sequential Panel
 Selection Method (SPSM), proposed by Chortareas and Kapetanios (2009) to
 test the validity of long-run purchasing power parity (PPP) in a sample of
 15 Latin American countries using monthly data spanning from December 1994
 to February 2010. SPSM classifies the whole panel into a group of
 stationary and nonstationary series. In doing so, we can clearly identify
 how many and which series in the panel are stationary processes. Empirical
 results from the SPSM using the Panel KSS unit root test (Ucar and Omay,
 2009) with a Fourier function which accounts for any structural break in
 the data indicate that PPP holds in many of the Latin American countries
 studied.			
Journal: Applied Economics 
Pages: 4584-4590 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795279 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795279 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4584-4590




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Peichl 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Peichl 
Author-Name: Nico Pestel 
Author-X-Name-First: Nico 
Author-X-Name-Last: Pestel 
Title: Multidimensional affluence: theory and applications to Germany and the US 
Abstract:
				 This article suggests multidimensional
 affluence measures for the top of the distribution. In contrast to
 commonly used top income shares, they allow the analysis of the extent,
 intensity and breadth of affluence in several dimensions within a common
 framework. We illustrate this by analysing the role of income and wealth
 as dimensions of multidimensional well-being in Germany and the US in 2007
 as well as for the US over the period 1989--2007. We find distinct country
 differences with the country ranking depending on the measure. While in
 Germany wealth predominantly contributes to the intensity of affluence,
 income is more important in the US.		       
Journal: Applied Economics 
Pages: 4591-4601 
Issue: 32 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795280 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795280 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4591-4601




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey B. Nugent 
Author-X-Name-First: Jeffrey B. 
Author-X-Name-Last: Nugent 
Author-Name: Malgorzata Switek 
Author-X-Name-First: Malgorzata 
Author-X-Name-Last: Switek 
Title: Oil prices and life satisfaction: asymmetries between oil exporting and oil importing countries 
Abstract:
				 In spite of general consensus on the
 importance of oil prices for objective measures of economic well-being
 across countries, almost no research has been carried out to analyse the
 effects of oil prices on subjective well-being internationally. Using the
 World Values Survey (2009), we help fill this gap by studying the effects
 of oil prices on life satisfaction for two groups of countries, oil
 importers and oil exporters. Although some previous studies have shown
 negative effects of oil prices on subjective well-being of one oil
 importing country the United States, since it is an outlier in terms of
 dependence on automobiles and in gasoline consumption per capita, these
 findings may not be representative of other oil importing countries. Our
 results show that, in fact, oil prices have quite strong negative effects
 on life satisfaction in a sample of over 40 oil importing countries. By
 contrast, for oil exporting countries for which there have been virtually
 no previous quantitative studies, but theoretical analyses suggest the
 results could be ambiguous, we find strong positive effects on life
 satisfaction. Hence, our results reveal quite strong asymmetries in the
 effects of oil prices on life satisfaction between oil importers and oil
 exporters.			 
Journal: Applied Economics 
Pages: 4603-4628 
Issue: 33 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795281 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795281 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4603-4628




Template-Type: ReDIF-Article 1.0
Author-Name: Janko Gorter 
Author-X-Name-First: Janko 
Author-X-Name-Last: Gorter 
Author-Name: Jacob A. Bikker 
Author-X-Name-First: Jacob A. 
Author-X-Name-Last: Bikker 
Title: Investment risk taking by institutional investors 
Abstract:
				 According to theory, institutional
 investors face both risk-management and risk-shifting incentives. This
 article assesses the relevance of these conflicting incentives for Dutch
 pension funds and insurance firms over the period 1995 to 2009. Using a
 unique and extended data set, we observe a significant positive
 relationship between capital and asset risk for insurers, indicating that
 risk-management incentives dominate in the Dutch insurance industry.
 Risk-shifting incentives, however, also seem relevant, as stock insurers
 take more investment risk than their mutual peers. For Dutch pension
 funds, we conclude that overall neither risk-shifting nor risk-management
 incentives seem to dominate. Interestingly, we find that professional
 group pension funds take significantly less investment risk than other
 types of pension funds. This finding is in line with expectations, as in
 professional group pension funds potential incentive conflicts between
 pension fund participants and the employer are effectively internalized.   
Journal: Applied Economics 
Pages: 4629-4640 
Issue: 33 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795282 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795282 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4629-4640




Template-Type: ReDIF-Article 1.0
Author-Name: Jakob B. Madsen 
Author-X-Name-First: Jakob B. 
Author-X-Name-Last: Madsen 
Author-Name: Eric Yan 
Author-X-Name-First: Eric 
Author-X-Name-Last: Yan 
Title: The first Great Divergence and the evolution of cross-country income inequality during the last millennium: the role of institutions and culture 
Abstract:
				 Using a millennium of data for 12
 countries in the East and in the West, this article tests the extent to
 which contracting institutions, property right institutions and culture
 can explain economic development and the Great Divergence. It is tested
 whether these theories influence growth through science and technology or
 through human capital or channels that are independent of these two
 channels. It is found that culture, contracting institutions and property
 right institutions have all been relevant for growth and development.	    
Journal: Applied Economics 
Pages: 4641-4650 
Issue: 33 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795283 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795283 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4641-4650




Template-Type: ReDIF-Article 1.0
Author-Name: Wanjun Yao 
Author-X-Name-First: Wanjun 
Author-X-Name-Last: Yao 
Author-Name: Tomoko Kinugasa 
Author-X-Name-First: Tomoko 
Author-X-Name-Last: Kinugasa 
Author-Name: Shigeyuki Hamori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Hamori 
Title: An empirical analysis of the relationship between economic development and population growth in China 
Abstract:
				 China has experienced a dramatic
 demographic transition since the latter half of the twentieth century, and
 thus, assessing the global economic implications is an important issue.
 This article uses time-series data on China to estimate the determinants
 of gross domestic product (GDP) per capita. According to the results of
 the presented co-integration analysis, population has a significantly
 negative impact on GDP per capita, while savings rate, total factor
 productivity and degree of industrialization have significantly positive
 impacts on GDP per capita. These results suggest that the share of the
 working-age population relative to the total population does not have a
 strong influence on GDP per capita. Therefore, the contribution of the
 working-age population to economic growth might not be as large as
 previously assumed. It is also possible that an increase in savings,
 remarkable industrialization and rapid technological progress have all
 stimulated economic growth in China greatly.			    
Journal: Applied Economics 
Pages: 4651-4661 
Issue: 33 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.795284 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795284 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4651-4661




Template-Type: ReDIF-Article 1.0
Author-Name: F. Karam 
Author-X-Name-First: F. 
Author-X-Name-Last: Karam 
Author-Name: C. Zaki 
Author-X-Name-First: C. 
Author-X-Name-Last: Zaki 
Title: On the determinants of trade in services: evidence from the MENA region 
Abstract:
				 This article examines the determinants of
 aggregate flows of service trade in MENA countries using an adapted
 version of the gravity model and a panel data set covering the 2000 to
 2009 period for 21 countries and 10 sectors. A new determinant of trade
 performance is introduced: the number of bound commitments undertaken by a
 sector in the WTO as well as the availability of those commitments by mode
 of supply. The results show that being a WTO member boosts trade in
 services. In addition, the number of bound commitments increases exports,
 imports and trade in services. This positive and significant effect
 remains robust even after controlling for several econometric issues,
 namely, the selection bias related to the WTO membership and the
 endogeneity of commitments.						    
Journal: Applied Economics 
Pages: 4662-4676 
Issue: 33 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.797560 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.797560 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4662-4676




Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Forecasting house prices for the four census regions and the aggregate US economy in a data-rich environment 
Abstract:
				 This article considers the ability of
 large-scale (involving 145 fundamental variables) time-series models,
 estimated by dynamic factor analysis and Bayesian shrinkage, to forecast
 real house price growth rates of the four US census regions and the
 aggregate US economy. Besides the standard Minnesota prior, we also use
 additional priors that constrain the sum of coefficients of the VAR
 models. We compare 1- to 24-months-ahead forecasts of the large-scale
 models over an out-of-sample horizon of 1995:01--2009:03, based on an
 in-sample of 1968:02--1994:12, relative to a random walk model, a
 small-scale VAR model comprising just the five real house price growth
 rates and a medium-scale VAR model containing 36 of the 145 fundamental
 variables besides the five real house price growth rates. In addition to
 the forecast comparison exercise across small-, medium- and large-scale
 models, we also look at the ability of the 'optimal' model (i.e. the model
 that produces the minimum average mean squared forecast error) for a
 specific region in predicting <italic>ex ante</italic> real house prices
 (in levels) over the period of 2009:04 till 2012:02. Factor-based models
 (classical or Bayesian) perform the best for the North East, Mid-West,
 West census regions and the aggregate US economy and equally well to a
 small-scale VAR for the South region. The 'optimal' factor models also
 tend to predict the downward trend in the data when we conduct an
 <italic>ex ante</italic> forecasting exercise. Our results highlight the
 importance of information content in large number of fundamentals in
 predicting house prices accurately.		       
Journal: Applied Economics 
Pages: 4677-4697 
Issue: 33 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.797561 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.797561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4677-4697




Template-Type: ReDIF-Article 1.0
Author-Name: M. Y. &Ccedil;ak&#x131;r 
Author-X-Name-First: M. Y. 
Author-X-Name-Last: &Ccedil;ak&#x131;r 
Author-Name: A. Kabundi 
Author-X-Name-First: A. 
Author-X-Name-Last: Kabundi 
Title: Business cycle co-movements between South Africa and the BRIC countries 
Abstract:
				 This article examines the relationships
 between South African economy and the economies of the BRIC (Brazil,
 Russia, India and China). In particular, it identifies the nature and key
 features of the co-movement of South African business cycles with cycles
 of the BRIC countries. It uses the dynamic factor model to a set of 307
 macroeconomic series during the period 1995Q2 to 2009Q4. We found
 significant evidence of synchronization between South Africa and the BRIC
 countries over the business cycle, although the magnitude of co-movement
 differs with each country. India portrays strong ties with South Africa
 over time. Moreover, Brazil, China and Russia lead South Africa in the
 long run, while India is contemporaneous. Further, the findings imply that
 the first two factors are BRICS factors while the third one is a US
 factor.		      
Journal: Applied Economics 
Pages: 4698-4718 
Issue: 33 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.797562 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.797562 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4698-4718




Template-Type: ReDIF-Article 1.0
Author-Name: Florent Fremigacci 
Author-X-Name-First: Florent 
Author-X-Name-Last: Fremigacci 
Author-Name: Antoine Terracol 
Author-X-Name-First: Antoine 
Author-X-Name-Last: Terracol 
Title: Subsidized temporary jobs: lock-in and stepping stone effects 
Abstract:
				 This article evaluates the effectiveness
 of subsidized temporary jobs as stepping stones to regular employment. We
 study a French program that allows job seekers to work part-time while
 remaining registered with the unemployment agency. In this program,
 insured individuals concurrently receive part of their unemployment
 benefits and wage income. Using administrative data, we find that
 subsidized temporary jobs have both a significant lock-in effect and a
 significant positive post-treatment impact on the hazard rate to
 employment. Since individuals facing a high implicit tax rate have
 incentives to self-select into better part-time jobs, we also find that a
 higher tax rate leads to a weaker lock-in effect and a stronger
 post-treatment effect. Simulations suggest that the lock-in effect first
 dominates, but that the overall effect eventually becomes positive. They
 also point to ways of improving the effectiveness of the policy.	    
Journal: Applied Economics 
Pages: 4719-4732 
Issue: 33 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.797644 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.797644 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4719-4732




Template-Type: ReDIF-Article 1.0
Author-Name: Zhiwei Xu 
Author-X-Name-First: Zhiwei 
Author-X-Name-Last: Xu 
Title: Univariate unobserved-component model with a nonrandom-walk permanent component 
Abstract:
				 In this article, we revisit the univariate
 unobserved-component (UC) model of the US GDP by relaxing the traditional
 random-walk assumption of the permanent component. Since our general UC
 model is unidentified, we investigate the upper bound of the contribution
 of the transitory component, and find the GDP fluctuation is dominated by
 the permanent component.			
Journal: Applied Economics 
Pages: 4733-4737 
Issue: 33 
Volume: 45 
Year: 2013 
Month: 11 
X-DOI: 10.1080/00036846.2013.799756 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.799756 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4733-4737




Template-Type: ReDIF-Article 1.0
Author-Name: Guillermo Felices 
Author-X-Name-First: Guillermo 
Author-X-Name-Last: Felices 
Author-Name: Vicente Tuesta 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Tuesta 
Title: Monetary policy in a dual currency environment 
Abstract:
				 We develop a small open economy general
 equilibrium model with sticky prices and partial dollarization -- a
 situation where both domestic and foreign currencies coexist. We derive a
 tractable representation of the model in terms of domestic inflation and
 the output gap in which a trade-off, which depends on the degree of
 dollarization, arises endogenously due to the presence of foreign interest
 rate shocks. We use this framework to show analytically how higher degrees
 of dollarization induce larger volatilities of the output gap and
 inflation, thus hampering a central bank's effectiveness to stabilize the
 economy. Our impulse response functions show that the transmission of such
 shocks has a positive (negative) effect on inflation and negative
 (positive) effect on the output gap when money aggregates and consumption
 are complements (substitutes). 		     
Journal: Applied Economics 
Pages: 4739-4753 
Issue: 34 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.804165 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804165 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4739-4753




Template-Type: ReDIF-Article 1.0
Author-Name: Omar S. Dahi 
Author-X-Name-First: Omar S. 
Author-X-Name-Last: Dahi 
Author-Name: Firat Demir 
Author-X-Name-First: Firat 
Author-X-Name-Last: Demir 
Title: Preferential trade agreements and manufactured goods exports: does it matter whom you PTA with? 
Abstract:
				 This article explores two questions.
 First, do preferential trade agreements (PTAs) affect manufactured goods
 exports of developing countries? Second, does it matter for developing
 countries whom they sign the PTAs with? We find that the answer to both
 questions is yes. Using bilateral manufactured goods exports data from 28
 developing countries during 1978--2005; we find that South--South PTAs
 have a significantly positive effect on manufactured goods exports. In
 contrast, no such effect is detected in the case of South--North PTAs. We
 confirmed the robustness of these findings to estimation methodology,
 sample selection, time period, zero trade flows and multilateral trade
 resistance.			     
Journal: Applied Economics 
Pages: 4754-4772 
Issue: 34 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.804169 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804169 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4754-4772




Template-Type: ReDIF-Article 1.0
Author-Name: Orla A. Murphy 
Author-X-Name-First: Orla A. 
Author-X-Name-Last: Murphy 
Author-Name: Ping Wang 
Author-X-Name-First: Ping 
Author-X-Name-Last: Wang 
Author-Name: Sunny X. Wang 
Author-X-Name-First: Sunny X. 
Author-X-Name-Last: Wang 
Author-Name: Greg Tkacz 
Author-X-Name-First: Greg 
Author-X-Name-Last: Tkacz 
Title: An economic efficiency study on different regions of Ghana via Slack-based data envelopment analysis and regression analysis 
Abstract:
				 In this article, we evaluate the
 efficiency of the 10 different regions of Ghana using slack-based data
 envelopment analysis, a nonparametric linear programming technique.
 Furthermore, we analyse the variable effects on the efficiency of the
 regions by various regression models using bootstrap sampling technique.
 The data come from the 1991/1992 and 1998/1999 Ghana Living Standards
 Survey. Our results show that wealth is not strongly related to
 efficiency. For example, the study indicates that the Brong--Ahafo region
 is the most efficient region but not the most wealthy in Ghana. Generally,
 urban regions are not found to be among the most efficient regions due to
 the high expenditures. The regression analysis shows that female heads of
 household have an overall positive effect on efficiency. In addition, any
 form of education obtained is also found to have a significant positive
 effect on efficiency.			     
Journal: Applied Economics 
Pages: 4773-4780 
Issue: 34 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.804170 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804170 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4773-4780




Template-Type: ReDIF-Article 1.0
Author-Name: Douglas M. Walker 
Author-X-Name-First: Douglas M. 
Author-X-Name-Last: Walker 
Author-Name: Peter T. Calcagno 
Author-X-Name-First: Peter T. 
Author-X-Name-Last: Calcagno 
Title: Casinos and political corruption in the United States: a Granger causality analysis 
Abstract:
				 The commercial casino industry experienced
 an unprecedented expansion in the United States during the 1990s. As the
 industry has grown, so has the anecdotal evidence that links the casino
 industry with political corruption. However, there have been no empirical
 analyses of the issue. We use state-level panel data from 1985--2000 to
 posit a Granger causality analysis of the relationship between corruption
 convictions of state public officials and the predicted adoptions of
 casinos at the state level. We find evidence that predicted casino
 adoptions Granger cause corruption convictions. This finding is suggestive
 of a scenario of regulatory capture and may help explain why state-level
 gaming regulatory agencies have a history of softening gaming regulations
 after the initial introduction of casinos. Our study provides the first
 empirical evidence linking casinos to political corruption.		    
Journal: Applied Economics 
Pages: 4781-4795 
Issue: 34 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.804171 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804171 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4781-4795




Template-Type: ReDIF-Article 1.0
Author-Name: WenShwo Fang 
Author-X-Name-First: WenShwo 
Author-X-Name-Last: Fang 
Author-Name: Stephen M. Miller 
Author-X-Name-First: Stephen M. 
Author-X-Name-Last: Miller 
Title: The effect of <italic>ESCO</italic>s on carbon dioxide emissions 
Abstract:
				 Proponents of energy service companies
 (<italic>ESCO</italic>s) argue that these firms provide a crucial
 instrument for delivering improved energy efficiency in public and private
 sectors, thus contributing to carbon dioxide (CO<sub>2</sub>) emission
 reduction around the world. Do <italic>ESCO</italic>s reduce
 CO<sub>2</sub> emissions? To answer this question, we develop an
 estimating equation, which approximates the IPAT model, from a simple
 model of production. We estimate a dynamic panel of 129 countries over the
 period 1980--2007 to show that the <italic>ESCO</italic>s effectively
 reduce CO<sub>2</sub> emissions and that this effect increases over time.
 These findings also prove robust to the inclusion of a set of control
 variables, different dates of the first <italic>ESCO</italic> and the
 Kyoto Protocol. Finally, we discuss energy policy implications.	    
Journal: Applied Economics 
Pages: 4796-4804 
Issue: 34 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.804172 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804172 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4796-4804




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Eichler 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Eichler 
Author-Name: Dominik Maltritz 
Author-X-Name-First: Dominik 
Author-X-Name-Last: Maltritz 
Title: An options-based approach to forecast competing bids: evidence for Canadian takeover battles 
Abstract:
				 During takeover battles, a tender offer
 provides a call option right to the target's shareholders: it guarantees
 the offered price but maintains the chance of a higher offer. We present
 an options-based approach to estimate the probability and expected value
 of higher competing takeover bids using target stock price data. Analysing
 Canadian takeover battles in the period 1997 to 2007 we find that during
 the 5 trading days prior to the occurrence of an increased takeover bid,
 the estimated probability of a higher bid exceeds 80% on average and the
 expected value of a potential competing bid almost matches the realized
 value. 			
Journal: Applied Economics 
Pages: 4805-4819 
Issue: 34 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.804167 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804167 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4805-4819




Template-Type: ReDIF-Article 1.0
Author-Name: Lu Han 
Author-X-Name-First: Lu 
Author-X-Name-Last: Han 
Author-Name: Siddhartha Bandyopadhyay 
Author-X-Name-First: Siddhartha 
Author-X-Name-Last: Bandyopadhyay 
Author-Name: Samrat Bhattacharya 
Author-X-Name-First: Samrat 
Author-X-Name-Last: Bhattacharya 
Title: Determinants of violent and property crimes in England and Wales: a panel data analysis 
Abstract:
				 We examine various determinants of
 property and violent crimes by using police force area level (PFA) data on
 England and Wales over the period of 1992--2008. Our list of potential
 determinants includes two law enforcement variables namely crime-specific
 detection rate and prison population, and various socio-economic variables
 such as unemployment rate, real earnings, proportion of young people and
 the Gini Coefficient. By adopting a fixed effect dynamic GMM estimation
 methodology we attempt to address the potential bias that arises from the
 presence of time-invariant unobserved characteristics of a PFA and the
 endogeneity of several regressors. There is a significant positive effect
 of own-lagged crime rate. The own-lagged effect is stronger for property
 crime, on an average, than violent crime. We find that, on an average,
 higher detection rate and prison population leads to lower property and
 violent crimes. This is robust to various specifications. However,
 socio-economic variables with the exception of real earnings play a
 limited role in explaining different crime types.		    
Journal: Applied Economics 
Pages: 4820-4830 
Issue: 34 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.806782 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806782 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4820-4830




Template-Type: ReDIF-Article 1.0
Author-Name: Boubacar Camara 
Author-X-Name-First: Boubacar 
Author-X-Name-Last: Camara 
Author-Name: Laetitia Lepetit 
Author-X-Name-First: Laetitia 
Author-X-Name-Last: Lepetit 
Author-Name: Amine Tarazi 
Author-X-Name-First: Amine 
Author-X-Name-Last: Tarazi 
Title: Ex ante capital position, changes in the different components of regulatory capital and bank risk 
Abstract:
				 We investigate the impact of changes in
 capital of European banks on their risk-taking behaviour from 1992 to
 2006, a time period covering the Basel I capital requirements. We
 specifically focus on the initial level and type of regulatory capital
 banks hold. First, we assume that risk changes depend on banks' <italic>ex
 ante</italic> regulatory capital position. Second, we consider the impact
 of an increase in each component of regulatory capital on banks' risk
 changes. We find that, for highly capitalized, adequately capitalized and
 strongly undercapitalized banks, an increase in equity or in subordinated
 debt positively affects risk. Moderately undercapitalized banks tend to
 invest in less risky assets when their equity ratio increases but not when
 they improve their capital position by extending hybrid capital or
 subordinated debt. On the whole, our conclusions support the need to
 implement more explicit thresholds to classify European banks according to
 their capital ratios but also to clearly distinguish pure equity from
 hybrid and subordinated instruments.		       
Journal: Applied Economics 
Pages: 4831-4856 
Issue: 34 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.804166 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804166 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4831-4856




Template-Type: ReDIF-Article 1.0
Author-Name: Sherrill Shaffer 
Author-X-Name-First: Sherrill 
Author-X-Name-Last: Shaffer 
Title: Reciprocal deposits and incremental bank risk 
Abstract:
				 Even after controlling for other
 observable factors, reciprocal deposits are associated with higher bank
 risk as measured by the probability of failure and the
 <italic>Z</italic>-score. These results are consistent with the moral
 hazard hypothesis and reject the risk substitution hypothesis. 	    
Journal: Applied Economics 
Pages: 4857-4860 
Issue: 34 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.806784 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806784 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4857-4860




Template-Type: ReDIF-Article 1.0
Author-Name: Marie Pfiffelmann 
Author-X-Name-First: Marie 
Author-X-Name-Last: Pfiffelmann 
Title: What is the optimal design for lottery-linked savings programmes? 
Abstract:
				 In this article, we determine the optimal
 design of lottery-linked savings (LLS) programmes. LLS vehicles, such as
 lottery bonds, are financial instruments that preserve depositors'
 principal but provide randomized variable returns to these depositors
 through periodic lottery drawings, <italic>in lieu</italic> of the regular
 coupon payments traditionally received by bondholders. This type of asset
 is very popular in Europe. We note that the framing of LLS instruments is
 linked to their popularity, and we attempt to elucidate that link and
 thereby determine the optimal structure of payments for LLS programmes.
 Our goal is to frame LLS programmes in a manner that both maximizes their
 investors' satisfaction and preserves their ability to serve as
 inexpensive sources of capital for their issuers. We demonstrate that the
 optimal pay-off structure is characterized by a high level of skewness, as
 investors are willing to accept a decrease in the small and medium prizes
 of the lottery in exchange for an increase in the grand prize. Thus, to
 attract a maximum number of depositors, the issuers of LLS programmes
 should prioritize the jackpot size relative to the other lottery pay-offs
 and insist on high skewness for the lottery pay-offs relating to the LLS
 assets.		      
Journal: Applied Economics 
Pages: 4861-4871 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.804168 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804168 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4861-4871




Template-Type: ReDIF-Article 1.0
Author-Name: Syster C. Maart-Noelck 
Author-X-Name-First: Syster C. 
Author-X-Name-Last: Maart-Noelck 
Author-Name: Oliver Musshoff 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Musshoff 
Author-Name: Moritz Maack 
Author-X-Name-First: Moritz 
Author-X-Name-Last: Maack 
Title: The impact of price floors on farmland investments: a real options based experimental analysis 
Abstract:
				 Price floors are a common instrument for
 market intervention to stimulate investments. In some cases, it can be
 observed that a price floor does not have the stimulating effect. We
 experimentally analyse the investment behaviour of students who take the
 role of farmers. The experiment considers an investment problem under
 uncertainty in a 'with price floor' and a 'no price floor' treatment,
 stylizing a decision to take an ongoing farmland investment option. We
 compare the actual investment behaviour with normative benchmarks of the
 net present value and the real options approach. Furthermore, we look at
 order and learning effects. The results show that the price floor has no
 significant impact on the willingness to invest, whereas the effects of
 order were statistically significant. The investment reluctance arising
 from an abolishment is stronger than the investment stimulation arising
 from the introduction of a price floor. Furthermore, neither the net
 present value nor the real options approach is appropriate to predict the
 investment behaviour in general. Nevertheless, the predictions of the real
 options approach enable an approximation of the participants' investment
 behaviour if the individuals have an adequate chance to learn from
 personal experience.		       
Journal: Applied Economics 
Pages: 4872-4882 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.806783 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806783 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4872-4882




Template-Type: ReDIF-Article 1.0
Author-Name: Garry F. Barrett 
Author-X-Name-First: Garry F. 
Author-X-Name-Last: Barrett 
Author-Name: Milica Kecmanovic 
Author-X-Name-First: Milica 
Author-X-Name-Last: Kecmanovic 
Title: Changes in subjective well-being with retirement: assessing savings adequacy 
Abstract:
				 Does retirement represent a state of
 relative prosperity or unanticipated hardship? To assess whether
 individuals are successful in smoothing their well-being across the
 transition to retirement we analyse measures of subjective well-being
 (SWB) in the Household, Income and Labour Dynamics in Australia (HILDA)
 Survey. Specifically, this research examines retirees' current standard of
 living, financial security and overall happiness relative to their
 pre-retirement levels. It is found SWB either improves or remains constant
 for the large majority of individuals as they retire from the labour
 force. However, there are significant disparities in changes in well-being
 with retirement among the group of retirees. In particular, the subset of
 individuals who are forced to retire early due to job loss or their own
 health, and who find their income in retirement to be much less than
 expected, report marked declines in their SWB with retirement. 	    
Journal: Applied Economics 
Pages: 4883-4893 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.806786 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4883-4893




Template-Type: ReDIF-Article 1.0
Author-Name: Magda ElSayed Kandil 
Author-X-Name-First: Magda ElSayed 
Author-X-Name-Last: Kandil 
Title: Variation in the fiscal multiplier with the method of financing: evidence across industrial countries 
Abstract:
				 Government spending has often varied with
 the business cycle to stimulate the economy and to revive economic
 conditions. However, the state of public finances has often necessitated
 higher borrowing to finance widening fiscal deficits. Indeed, recent
 austerity packages around the globe have crystalized the importance of
 fiscal consolidation against the backdrop of rising public debt. To shed
 light on recent debates regarding fiscal multipliers, the article
 estimates variation in these multipliers with the method of financing,
 using annual data for a sample of industrial countries. There is a large
 variation in the effects of expansionary and contractinary government
 spending shocks on economic variables within and across countries. The
 significant effects of negative government spending shocks (fiscal
 contraction) appear more prevalent than those of expansionary shocks on
 real output growth, price inflation and nominal wage inflation. Consistent
 with theory's predictions, the fiscal multiplier is more likely to be
 negative when government spending is financed by issuing debt and less
 likely in the case of monetization. The evidence confirms concerns about
 the negative effect of higher debt and more expensive financing on private
 activity, countering the effectiveness of fiscal policy.		    
Journal: Applied Economics 
Pages: 4894-4927 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.807025 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.807025 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4894-4927




Template-Type: ReDIF-Article 1.0
Author-Name: James H. Cardon 
Author-X-Name-First: James H. 
Author-X-Name-Last: Cardon 
Author-Name: Jeffrey T. Denning 
Author-X-Name-First: Jeffrey T. 
Author-X-Name-Last: Denning 
Author-Name: Mark H. Showalter 
Author-X-Name-First: Mark H. 
Author-X-Name-Last: Showalter 
Title: Flexible spending accounts and the use-it-or-lose-it provision 
Abstract:
				 Flexible spending accounts (FSAs) are a
 widely used arrangement that allow employees to pay for qualified
 out-of-pocket health expenses with pre-tax dollars. The original structure
 of FSAs included a significant forfeiture risk if households had unused
 funds in their accounts at the end of the year. In 2005, the US Treasury
 made an administrative ruling that offered a grace period for spending FSA
 funds after the end of the calendar year, thereby substantially reducing
 forfeiture risk. We use a unique panel data set to evaluate the effects of
 this rule change.We find that the change increased FSA participation rates
 by about 4 percentage points (17% increase from a 23.9% baseline). We also
 find that FSA election amounts increased by just over 3%, though this
 result is more fragile.			
Journal: Applied Economics 
Pages: 4928-4939 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.808308 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808308 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4928-4939




Template-Type: ReDIF-Article 1.0
Author-Name: Erez Siniver 
Author-X-Name-First: Erez 
Author-X-Name-Last: Siniver 
Author-Name: Yosef Mealem 
Author-X-Name-First: Yosef 
Author-X-Name-Last: Mealem 
Author-Name: Gideon Yaniv 
Author-X-Name-First: Gideon 
Author-X-Name-Last: Yaniv 
Title: Overeating in all-you-can-eat buffet: paying before versus paying after 
Abstract:
				 A widespread meal-serving system commonly
 blamed for contributing to the obesity epidemic is the all-you-can-eat
 buffet, where customers can help themselves to as much food as they wish
 to eat in a single meal for a fixed entry price. We set forth the
 hypothesis that buffet restaurants' practice of collecting the price in
 advance, rather than at the end of the meal, encourages overeating.
 Viewing advance payment as a token of disrespectful treatment, we first
 establish this result theoretically by extending two recent and competing
 models on buffet behaviour to take account of the customer's treatment
 experience. We then report the results of two experiments conducted in a
 sushi restaurant which support our hypothesis. The experiments reveal,
 <italic>ceteris paribus</italic>, that paying for the buffet meal after
 eating reduces sushi consumption by about 4.5 units, as compared to paying
 before eating. The result bears a straightforward and simple policy
 implication: To help reduce obesity, buffet restaurants should be banned
 from collecting the price in advance.			
Journal: Applied Economics 
Pages: 4940-4948 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.808309 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808309 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4940-4948




Template-Type: ReDIF-Article 1.0
Author-Name: P. Teixeira 
Author-X-Name-First: P. 
Author-X-Name-Last: Teixeira 
Author-Name: V. Rocha 
Author-X-Name-First: V. 
Author-X-Name-Last: Rocha 
Author-Name: R. Biscaia 
Author-X-Name-First: R. 
Author-X-Name-Last: Biscaia 
Author-Name: M. F. Cardoso 
Author-X-Name-First: M. F. 
Author-X-Name-Last: Cardoso 
Title: Competition and diversification in public and private higher education 
Abstract:
				 The development of mass higher education
 and growing competition between higher education institutions has given
 increasing visibility to the issue of diversification. This article
 analyses the issue of programme diversification, using a panel of 181
 Portuguese higher education institutions over the period 1995 to 2007, by
 comparing the behaviour of public and private institutions. The results
 show that the legal status of institutions is the major determinant of
 programme diversification, as private institutions are far more
 specialized than their public counterparts. The study also evaluates the
 role of other institutional variables, such as the institution's size,
 age, location, institutional mission and research intensity, to explain
 differences in the diversification behaviour of higher education
 institutions. The results provide important insights, as competition has
 been thought to improve the performance of higher education institutions.  
Journal: Applied Economics 
Pages: 4949-4958 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.808310 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808310 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4949-4958




Template-Type: ReDIF-Article 1.0
Author-Name: Gazi M. Hassan 
Author-X-Name-First: Gazi M. 
Author-X-Name-Last: Hassan 
Author-Name: Mark J. Holmes 
Author-X-Name-First: Mark J. 
Author-X-Name-Last: Holmes 
Title: Remittances and the real effective exchange rate 
Abstract:
				 We examine the long-run relationship
 between remittances and the real exchange rate for less-developed
 countries. In a key departure from the literature, we employ a panel
 cointegration approach using an innovative method for the measurement of
 the multilateral real effective exchange rate and we focus on
 high-remittance economies. We find a small inelastic, but significant,
 long-run relationship which confirms a Dutch disease type effect. The
 short-run relationship is explored using a panel vector error correction
 model which confirms that short-run causality is unidirectional running
 from remittances to the exchange rate. Potential asymmetries in this
 relationship are identified using quantile regression analysis.	    
Journal: Applied Economics 
Pages: 4959-4970 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.808311 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808311 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4959-4970




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph D. Alba 
Author-X-Name-First: Joseph D. 
Author-X-Name-Last: Alba 
Author-Name: Wai-Mun Chia 
Author-X-Name-First: Wai-Mun 
Author-X-Name-Last: Chia 
Author-Name: Zheng Su 
Author-X-Name-First: Zheng 
Author-X-Name-Last: Su 
Title: Oil shocks and monetary policy rules in emerging economies 
Abstract:
				 We examine the effects of shocks in the
 oil market on key macroeconomic variables in small open economies using a
 dynamic stochastic general equilibrium model with sticky prices and
 imperfect competition under different monetary policy rules. The numerical
 solutions show that the types of exchange rate regimes and monetary
 policies could partly explain the trends in macroeconomic volatilities
 considering negative shocks to oil supply (Hamilton, 1983) and positive
 shocks to oil demand (Kilian, 2009). These findings are confirmed in
 vector autoregressive responses for Chile and Israel with inflation
 targeting under flexible exchange regimes and Hong Kong with fixed regime. 
Journal: Applied Economics 
Pages: 4971-4984 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.808312 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808312 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4971-4984




Template-Type: ReDIF-Article 1.0
Author-Name: Pian Chen 
Author-X-Name-First: Pian 
Author-X-Name-Last: Chen 
Author-Name: Aaron Smith 
Author-X-Name-First: Aaron 
Author-X-Name-Last: Smith 
Title: The nonlinear multidimensional relationship between stock returns and the macroeconomy 
Abstract:
				 We use nonparametric dimension-reduction
 methods to extract from a set of 15 macroeconomic variables the risk
 factors that are priced in the stock market. The dominant factor moves
 with the business cycle but, because it is a nonlinear function of
 observed macroeconomic variables, it captures a rich set of interactions.
 Low-credit risk and low-inflationary expectations have a greater positive
 effect on stock returns when leading macroeconomic indicators are high
 relative to current economic activity, i.e. early in the business cycle as
 the economy emerges from recession. High-stock returns also arise in
 periods when the economy is booming relative to its leading indicators,
 but such periods tend to portend crashes.		      
Journal: Applied Economics 
Pages: 4985-4999 
Issue: 35 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.806785 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806785 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4985-4999




Template-Type: ReDIF-Article 1.0
Author-Name: Elisabeth Mueller 
Author-X-Name-First: Elisabeth 
Author-X-Name-Last: Mueller 
Author-Name: Frank Reize 
Author-X-Name-First: Frank 
Author-X-Name-Last: Reize 
Title: Loan availability and investment: can innovative companies better cope with loan denials? 
Abstract:
				 This study examines the consequences of
 loan denials for the investment performance of small- and medium-sized
 German enterprises. As a consequence of a loan denial, innovative
 companies experience a smaller drop in the share of actual to planned
 investment than noninnovative companies. The nonrandomness of loan denials
 is controlled for with a selection equation employing the intensity of
 banking competition at the district level as an exclusion restriction. We
 can explain the better performance of innovative companies by their
 ability to increase the use of external equity financing, such as venture
 capital or mezzanine capital, when facing a loan denial.		    
Journal: Applied Economics 
Pages: 5001-5011 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.808314 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808314 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5001-5011




Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth Anne Yeager 
Author-X-Name-First: Elizabeth Anne 
Author-X-Name-Last: Yeager 
Author-Name: Michael R. Langemeier 
Author-X-Name-First: Michael R. 
Author-X-Name-Last: Langemeier 
Title: Economic efficiency and downside risk 
Abstract:
				 This article investigates the impact of
 downside risk on cost and revenue efficiency (RE) for a sample of farms.
 Downside risk or loss below a certain level of return is a concern
 regardless of producer risk preferences and thus a suitable measure of
 risk to use. Downside risk was measured as the weighted summation of net
 farm income below the amount needed for unpaid labour during the previous
 10 years. Cost and RE were estimated using traditional input and output
 measures, and then re-estimated including each farm's downside risk.
 Comparisons were made between the efficient farms with and without
 downside risk and the average for all farms. As expected, downside risk
 plays an important role in explaining farm inefficiency. Failure to
 account for downside risk overstates inefficiency and can lead to
 unrealistic expectations in potential efficiency improvements. 	    
Journal: Applied Economics 
Pages: 5012-5020 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.808313 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808313 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5012-5020




Template-Type: ReDIF-Article 1.0
Author-Name: Diana Bowser 
Author-X-Name-First: Diana 
Author-X-Name-Last: Bowser 
Author-Name: David Canning 
Author-X-Name-First: David 
Author-X-Name-Last: Canning 
Title: The effect of health improvements due to tobacco control on earnings in the United States 
Abstract:
				 There is minimal evidence causally
 estimating the relationship between tobacco tax policy, population health
 and earnings. This article uses state tobacco taxes as an instrument for
 life expectancy to estimate the effect on earnings per capita in a panel
 of almost 3000 counties in the United States over the period 1970 to 2000.
 In the first stage of the model, we find that a one dollar increase in
 state tobacco taxes significantly increases life expectancy between 1.9%
 and 2.1%. Despite showing that tobacco tax is correlated with higher life
 expectancy and that, theoretically, improvements in health from reductions
 in smoking should lead to increased earnings, we find an insignificant
 impact of the induced gains in life expectancy from tobacco policy on
 county level earnings per capita over the period 1970 to 2000. The lack of
 significance is explained through local average treatment effects and the
 smaller economic impact of certain policies that impact health later in
 life. These results provide further evidence that the most effective
 interventions for improving income later in life are policy interventions
 with a direct impact on the health of younger cohorts rather than older
 cohorts.			 
Journal: Applied Economics 
Pages: 5021-5030 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.815310 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.815310 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5021-5030




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno P. Arruda 
Author-X-Name-First: Bruno P. 
Author-X-Name-Last: Arruda 
Author-Name: Pedro L. Valls Pereira 
Author-X-Name-First: Pedro L. 
Author-X-Name-Last: Valls Pereira 
Title: Analysis of the volatility's dependency structure during the subprime crisis 
Abstract:
				 In this article, we test the hypothesis of
 contagion amongst sectors within the United States' economy during the
 subprime crisis. The econometric methodology applied here is based on the
 dynamic conditional correlation model proposed by Engle (2002). Further,
 we applied several Lagrange multiplier (LM)-robust tests to test whether
 there were structural breaks in series' dependency structures during the
 period of interest. Events theoretically classified as relevant to the
 crisis upshots as well as the interactions between the moments of the
 series were used as indicator functions to the referred structural breaks.
 The main conclusion of this study is that one can indeed observe contagion
 within almost all pairs of sectors' indices. Thus, we conclude that the
 dependency structure of the sectors of interest has faced structural
 changes during the years of 2007 and 2008. Hence, diversification
 strategies as well as the risk analysis inherent to the portfolios'
 management may have been drastically affected. 		    
Journal: Applied Economics 
Pages: 5031-5045 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.815311 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.815311 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5031-5045




Template-Type: ReDIF-Article 1.0
Author-Name: Raymond G. Riezman 
Author-X-Name-First: Raymond G. 
Author-X-Name-Last: Riezman 
Author-Name: John Whalley 
Author-X-Name-First: John 
Author-X-Name-Last: Whalley 
Author-Name: Shunming Zhang 
Author-X-Name-First: Shunming 
Author-X-Name-Last: Zhang 
Title: Metrics capturing the degree to which individual economies are globalized 
Abstract:
				 We discuss metrics of globalization for
 individual economies as distance measures between fully integrated and
 trade restricted equilibria in economies initially operating under less
 than full integration with the global economy. Such metrics can be used to
 construct country globalization metrics reflecting the distance of
 economies from full global integration due to trade barriers, barriers to
 factor flows, barriers to international financial intermediation, solved
 technological diffusion and other economy-specific features yielding less
 than full integration into the global economy. Many distance metrics
 present themselves and none are wholly satisfactory since they each behave
 differently across various displacements from integration. Distance
 measures can, for instance, be small in goods space but large in price
 space. We present alternative measures constructed for eight OECD
 economies and comment in a concluding section on other measures used
 elsewhere in the literature such as trade/GDP ratios.			    
Journal: Applied Economics 
Pages: 5046-5061 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.815312 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.815312 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5046-5061




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Martins de Souza 
Author-X-Name-First: Rafael Martins 
Author-X-Name-Last: de Souza 
Author-Name: Luiz Felipe Pires Maciel 
Author-X-Name-First: Luiz Felipe Pires 
Author-X-Name-Last: Maciel 
Author-Name: Adrian Pizzinga 
Author-X-Name-First: Adrian 
Author-X-Name-Last: Pizzinga 
Title: State space models for the exchange rate pass-through: determinants and null/full pass-through hypotheses 
Abstract:
				 In this article, we formulate linear
 Gaussian state space models for the estimation of the exchange rate
 pass-through of the Brazilian Real against the US Dollar, using monthly
 data from August 1999 to August 2008. The state space/Kalman filtering
 framework allows the investigation of some empirical aspects previously
 suggested in the literature, such as time-varying coefficients and
 null/full pass-through hypotheses. We also test whether some theoretical
 'determinants' of the pass-through are statistically significant in the
 period considered. The principal findings are as follows: (1) the data
 offer strong support to a time-varying pass-through; and (2) the variance
 of the exchange rate pass-through, the monetary policy and the trade flow
 have shown to be relevant determinants of the exchange rate pass-through.  
Journal: Applied Economics 
Pages: 5062-5075 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.815397 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.815397 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5062-5075




Template-Type: ReDIF-Article 1.0
Author-Name: V. Coudert 
Author-X-Name-First: V. 
Author-X-Name-Last: Coudert 
Author-Name: C. Couharde 
Author-X-Name-First: C. 
Author-X-Name-Last: Couharde 
Author-Name: V. Mignon 
Author-X-Name-First: V. 
Author-X-Name-Last: Mignon 
Title: Pegging emerging currencies in the face of dollar swings 
Abstract:
				 The aim of this article is to study
 ruptures of exchange rate pegs by focusing on the fluctuations of the
 anchor currency. We test for the hypothesis that currencies linked to the
 USD are more likely to loosen their peg when the USD is appreciating,
 while sticking to it otherwise. To this end, we estimate smooth-transition
 regression models for a sample of 28 emerging currencies over the
 1994--2011 period. Our findings show that while the real effective
 exchange rates of most of these countries tend to co-move with that of the
 USD in times of depreciation, this relationship is frequently reversed
 when the US currency appreciates over a certain threshold.		    
Journal: Applied Economics 
Pages: 5076-5085 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.818215 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.818215 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5076-5085




Template-Type: ReDIF-Article 1.0
Author-Name: Olga Isengildina-Massa 
Author-X-Name-First: Olga 
Author-X-Name-Last: Isengildina-Massa 
Author-Name: Berna Karali 
Author-X-Name-First: Berna 
Author-X-Name-Last: Karali 
Author-Name: Scott H. Irwin 
Author-X-Name-First: Scott H. 
Author-X-Name-Last: Irwin 
Title: When do the USDA forecasters make mistakes? 
Abstract:
				 This study analysed forecasts for all US
 corn, soya bean and wheat categories published within the World
 Agricultural Supply and Demand Estimates (WASDE ) reports over the 1987/88
 through 2009/10 marketing years in an attempt to identify patterns and
 better understand when the USDA forecasters make mistakes. Two general
 sources of errors were investigated: behavioural and macroeconomic
 factors. The first objective was to examine how these factors affect the
 size of the forecast error and the second concentrated on the direction of
 the error due to these effects. Our findings suggest that the largest
 increase in the size of USDA forecast errors was associated with
 structural changes in commodity markets that took place in the mid-2000s.
 Corn, soya bean and wheat forecast errors also grew during the periods of
 economic growth and with changes in exchange rates, while inflation and
 changes in oil price had a much smaller impact. With respect to
 behavioural sources, we identified patterns consistent with leniency and
 pessimism across different categories. Predictability of forecast errors
 based on the information available at the time the forecasts are made
 provides evidence of inefficiency and suggests that these forecasts may be
 improved using the findings of this study.			  
Journal: Applied Economics 
Pages: 5086-5103 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.818213 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.818213 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5086-5103




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas A. Jolly 
Author-X-Name-First: Nicholas A. 
Author-X-Name-Last: Jolly 
Title: The impact of work-limiting disabilities on earnings and income mobility 
Abstract:
				 This article uses the 1968--2007 waves of
 the Panel Study of Income Dynamics (PSID) to examine how work-limiting
 disabilities influence the intragenerational earnings and income mobility
 of individuals. The results show that work-limiting disabilities increase
 the probability of downward mobility for several years after onset.
 Furthermore, the probability of being in the bottom portions of the
 distributions increases significantly, not only during the year of onset
 but also for at least 10 years afterwards. These results are more
 pronounced for those individuals suffering from a disability that is more
 chronic or severe in nature. Income from spousal earnings and government
 transfer payments offers some protection against disability's adverse
 effect, with more protection being provided to those who are more
 chronically disabled.			      
Journal: Applied Economics 
Pages: 5104-5118 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.818212 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.818212 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5104-5118




Template-Type: ReDIF-Article 1.0
Author-Name: Sonila M. Tomini 
Author-X-Name-First: Sonila M. 
Author-X-Name-Last: Tomini 
Author-Name: Wim Groot 
Author-X-Name-First: Wim 
Author-X-Name-Last: Groot 
Title: Paying informally for public health care in Albania: scarce resources or governance failure? 
Abstract:
				 Informal payments for health care are
 common in most former communist countries. This article explores the
 demand side of these payments in Albania. Using tobit and Heckman
 selection models we control for individual determinants of informal
 payments in outpatient and inpatient health care. Propensity score
 matching (PSM) techniques are used to investigate the changes in the
 characteristics of people paying informally over the different years. Our
 findings suggest that vulnerable groups in society remain less protected
 against such payments and policy measures have not reached the most
 deprived regions of the country.			 
Journal: Applied Economics 
Pages: 5119-5130 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.818216 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.818216 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5119-5130




Template-Type: ReDIF-Article 1.0
Author-Name: Mari Kangasniemi 
Author-X-Name-First: Mari 
Author-X-Name-Last: Kangasniemi 
Author-Name: Antti Kauhanen 
Author-X-Name-First: Antti 
Author-X-Name-Last: Kauhanen 
Title: Performance-related pay and gender wage differences 
Abstract:
				 We study the impact of performance-related
 pay (PRP) on gender wage differences using Finnish-linked
 employer--employee panel data. Controlling for unobserved person and firm
 effects, we find that bonuses increase women's earnings slightly less than
 men's, but the economic significance of the difference is negligible.
 Piece rates and reward rates, however, tend to increase gender wage
 differentials. Thus, the nature of a PRP plan is important for gauging the
 impact of PRP on gender wage differentials. A comparison with OLS results
 shows the importance of controlling for an unobserved person and firm
 effects.			  
Journal: Applied Economics 
Pages: 5131-5143 
Issue: 36 
Volume: 45 
Year: 2013 
Month: 12 
X-DOI: 10.1080/00036846.2013.824546 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.824546 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle:  RePEc:taf:applec:v:45:y:2013:i:36:p:5131-5143




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Hanafiah Harvey 
Author-X-Name-First: Hanafiah 
Author-X-Name-Last: Harvey 
Author-Name: Scott W. Hegerty 
Author-X-Name-First: Scott W. 
Author-X-Name-Last: Hegerty 
Title: Brazil--US commodity trade and the J-Curve 
Abstract:
				 Currency devaluation or depreciation is
 said to temporarily worsen a country's trade balance and improve it later,
 an effect that is called the J-Curve. Previous research that tested the
 J-Curve for Brazil used the country's aggregate trade flows with the rest
 of the world and did not find support for the phenomenon. In this article,
 we consider the trade flows between Brazil and a major trading partner,
 the United States, disaggregating their trade flows by commodity. We then
 test the empirical validity of the J-Curve for each of the 92 industries
 that trade between the two countries. We find support for the phenomenon
 in 31 industries. Therefore, disaggregation by industry seems to yield
 some support for the phenomenon.		      
Journal: Applied Economics 
Pages: 1-13 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.824548 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.824548 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:1-13




Template-Type: ReDIF-Article 1.0
Author-Name: Horst Feldmann 
Author-X-Name-First: Horst 
Author-X-Name-Last: Feldmann 
Title: Venture capital availability and labour market performance around the world 
Abstract:
				 This article studies the effects of
 venture capital on the performance of the labour market. Using data from a
 much larger sample of countries than previous papers, it finds more
 readily available venture capital to favourably affect both the
 unemployment and the employment rate. The magnitude of the estimated
 effects is substantial. We control for both endogeneity of venture capital
 availability and most major determinants of labour market performance. The
 results are robust to variations in specification.			   
Journal: Applied Economics 
Pages: 14-29 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.826874 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.826874 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:14-29




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Author-Name: Kelly Burns 
Author-X-Name-First: Kelly 
Author-X-Name-Last: Burns 
Title: A reappraisal of the Meese--Rogoff puzzle 
Abstract:
				 Several explanations have been put forward
 for the Meese--Rogoff puzzle that exchange rate models cannot outperform
 the random walk in out-of-sample forecasting. We suggest that a simple
 explanation for the puzzle is the use of the root mean square error (RMSE)
 to measure forecasting accuracy, presenting a rationale as to why it is
 difficult to beat the random walk in terms of the RMSE. By using exactly
 the same exchange rates, time periods and estimation methods as those of
 Meese and Rogoff, we find that their results cannot be overturned even if
 the models are estimated with time-varying coefficients. However, we also
 find that the random walk can be outperformed by the same models if
 forecasting accuracy is measured in terms of the ability to predict
 direction, in terms of a measure that combines magnitude and direction and
 in terms of profitability.			  
Journal: Applied Economics 
Pages: 30-40 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.829202 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829202 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:30-40




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Samarina 
Author-X-Name-First: Anna 
Author-X-Name-Last: Samarina 
Author-Name: Mirre Terpstra 
Author-X-Name-First: Mirre 
Author-X-Name-Last: Terpstra 
Author-Name: Jakob De Haan 
Author-X-Name-First: Jakob 
Author-X-Name-Last: De Haan 
Title: Inflation targeting and inflation performance: a comparative analysis 
Abstract:
				 This article examines how the impact of
 inflation targeting on inflation performance depends on the choice of
 country samples, adoption dates, time periods and methodological
 approaches. We apply two different estimation methods --
 difference-in-differences and propensity score matching -- for our sample
 of 25 advanced and 59 emerging and developing countries over the period
 1985 to 2011. Our findings suggest that distinguishing countries by
 economic development is crucial, as no effect of inflation targeting is
 found for advanced economies, whereas the results suggest a significant
 negative effect of inflation targeting on inflation in emerging and
 developing countries. The results are robust to the methodology used for
 the analysis.			      
Journal: Applied Economics 
Pages: 41-56 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.829205 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:41-56




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas T. Thøgersen 
Author-X-Name-First: Thomas T. 
Author-X-Name-Last: Thøgersen 
Author-Name: Sean Pascoe 
Author-X-Name-First: Sean 
Author-X-Name-Last: Pascoe 
Title: Combining performance measures to investigate capacity changes in fisheries 
Abstract:
				 The Common Fisheries Policy (CFP) aims to
 achieve a balance between the European fleet capacity and the resources
 available. This can be realized either by temporarily reducing the fishing
 effort (i.e. capacity utilization) or quotas in the hope of increasing the
 resources available or reducing the actual fishing capacity. In both
 cases, the relationship between effort indicators and capacity needs to be
 resolved in order for the manager to introduce the right interventions.
 Previous studies have estimated these relationships in multi-species
 fisheries using either a multi-output distance function approach (DFA) or
 with a second stage Data Envelopment Analysis (DEA). Both approaches have
 advantages and disadvantages. In this article, DEA and DFA are combined to
 reduce noise in the estimation and to establish more useful
 interpretations for the manager. The article compares the traditional DFA
 with the alternative approach for the Danish North Sea demersal trawlers.
 The alternative approach improves the estimation results and provides
 better estimates of efficiency scores, compared to the unadjusted DFA.
 Furthermore, the analyses suggest that the demersal trawlers have a
 limited ability to substitute catches of cod, plaice and Nephrops and that
 gross tonnage is a more consistent indicator of fishing capacity than
 engine power.			   
Journal: Applied Economics 
Pages: 57-69 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.829203 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:57-69




Template-Type: ReDIF-Article 1.0
Author-Name: W. Maennig 
Author-X-Name-First: W. 
Author-X-Name-Last: Maennig 
Author-Name: M. Steenbeck 
Author-X-Name-First: M. 
Author-X-Name-Last: Steenbeck 
Author-Name: M. Wilhelm 
Author-X-Name-First: M. 
Author-X-Name-Last: Wilhelm 
Title: Rhythms and cycles in happiness 
Abstract:
				 This study analyses time-dependent rhythms
 in happiness in three aspects. We show that the Sunday neurosis exists
 exclusively for men with a medium level of education and both men and
 women with high levels of education. Men with high levels of education may
 even experience a weekend neurosis. This study is the first to test for
 intra-monthly rhythms and to demonstrate that men with a lower educational
 background may suffer from negative effects on happiness towards the end
 of the month, potentially because of liquidity problems. The study is also
 the first to demonstrate that happiness exhibits seasonal effects over the
 annual period, depending on gender and education.		    
Journal: Applied Economics 
Pages: 70-78 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.829206 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829206 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:70-78




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Berlemann 
Author-X-Name-First: Michael 
Author-X-Name-Last: Berlemann 
Author-Name: Marco Oestmann 
Author-X-Name-First: Marco 
Author-X-Name-Last: Oestmann 
Author-Name: Marcel Thum 
Author-X-Name-First: Marcel 
Author-X-Name-Last: Thum 
Title: Demographic change and bank profitability: empirical evidence from German savings banks 
Abstract:
				 Most European economies will experience
 significant demographic changes in the decades ahead. Due to low birth
 rates, populations are shrinking and ageing at the same time. This article
 explores the impact of demographic change on the banking industry. A
 unique data set, which contains detailed information on almost 2.5 million
 accounts in 11 German savings banks, allows us estimating the
 socio-demographic determinants of retail profitability. Using a simulation
 model, we predict the development of bank profitability resulting from
 demographic shifts through 2025. Our central finding is that the effects
 of population ageing will partially offset the impact of shrinking
 customer bases. While the decline in the size of the population reduces
 the customer base, ageing increases profitability <italic>per se</italic>,
 as older customers typically generate higher profits for their banks.	    
Journal: Applied Economics 
Pages: 79-94 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.829262 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829262 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:79-94




Template-Type: ReDIF-Article 1.0
Author-Name: Y. Tsuchiya 
Author-X-Name-First: Y. 
Author-X-Name-Last: Tsuchiya 
Title: A directional evaluation of corporate executives' exchange rate forecasts 
Abstract:
				 We investigate the directional accuracy of
 exchange rate forecasts by corporate executives. We find that a forecast
 with a 1-year horizon is valuable for the profitability and
 unprofitability predictions of manufacturers, although previous studies
 provide considerable evidence that forecasts with horizons of 1 year and
 longer are not valuable. However, a forecast is not valuable in predicting
 an appreciation or depreciation of the exchange rate. Our findings suggest
 that corporate executives are more concerned about and focused on the
 impact of the exchange rate on their profitability, rather than the
 exchange rate itself.			
Journal: Applied Economics 
Pages: 95-101 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.831173 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.831173 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:95-101




Template-Type: ReDIF-Article 1.0
Author-Name: J. Stevens 
Author-X-Name-First: J. 
Author-X-Name-Last: Stevens 
Title: Identification problems in Granger causality tests based on the net oil price increase 
Abstract:
				 The net oil price increase is one of the
 most popular models used to study the relationship between changes in the
 price of oil and macroeconomic activity. The model postulates that an
 increase in the price of oil has negative consequences for the economy if
 the new price exceeds the maximum price observed over a reference period
 of arbitrary length. The relationship between the net oil price increase
 and other economic variables is often evaluated with Granger causality
 tests, the results of which are sensitive to the choice of the reference
 period. If the reference price is chosen to best fit the data, it becomes
 an unidentified nuisance parameter under the null hypothesis, causing
 standard tests to over-reject the null. This article proposes a simple
 method to obtain correct critical values. Using US data for the period
 1954 to 2012, it is found that these corrected critical values reduce, but
 do not eliminate support for the proposition that the net oil price
 increase Granger causes real USGDP growth.		       
Journal: Applied Economics 
Pages: 102-110 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.831170 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.831170 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:102-110




Template-Type: ReDIF-Article 1.0
Author-Name: Florin G. Maican 
Author-X-Name-First: Florin G. 
Author-X-Name-Last: Maican 
Author-Name: Richard J. Sweeney 
Author-X-Name-First: Richard J. 
Author-X-Name-Last: Sweeney 
Title: Costs of misspecification in break-model unit-root tests 
Abstract:
				 This article examines power issues for the
 ADF and four break models (Perron, 1989; Zivot and Andrews, 1992) when the
 DGP corresponds to one of the break models. Choosing to test an incorrect
 break model can, but need not, greatly reduce the probability of rejecting
 the null. Break points that are relatively early in the sample period have
 substantial effects of increasing power. For modest shifts in time trends,
 simply including a time trend without shift in the model preserves power,
 but not for large time-trend shifts.			      
Journal: Applied Economics 
Pages: 111-118 
Issue: 1 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.831171 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.831171 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:111-118




Template-Type: ReDIF-Article 1.0
Author-Name: Steve Cook 
Author-X-Name-First: Steve 
Author-X-Name-Last: Cook 
Author-Name: Duncan Watson 
Author-X-Name-First: Duncan 
Author-X-Name-Last: Watson 
Author-Name: Louise Parker 
Author-X-Name-First: Louise 
Author-X-Name-Last: Parker 
Title: New evidence on the importance of gender and asymmetry in the crime--unemployment relationship 
Abstract:
				 The literature examining the
 crime--unemployment relationship is vast. Three recent developments in the
 analysis of this relationship are combined with a novel empirical method
 to explore the importance of gender effects and asymmetric adjustment when
 analysing the impact of unemployment upon criminal activity. Using data
 for the United States of America, a number of interesting results are
 obtained. The key finding concerns the importance of gender, with
 opportunity effects in criminal activity detected when considering female,
 but not male, unemployment. Further examination shows findings to support
 theories associated with 'victimization' and worsening socio-economic
 conditions, rather than those emphasizing 'latchkey care' effects and an
 absence of guardianship. Consideration of motivation effects provides
 further evidence of significant asymmetries in the response of crime to
 unemployment.			   
Journal: Applied Economics 
Pages: 119-126 
Issue: 2 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.835481 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.835481 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:119-126




Template-Type: ReDIF-Article 1.0
Author-Name: D. J. Sanders 
Author-X-Name-First: D. J. 
Author-X-Name-Last: Sanders 
Author-Name: J. V. Balagtas 
Author-X-Name-First: J. V. 
Author-X-Name-Last: Balagtas 
Author-Name: G. Gruere 
Author-X-Name-First: G. 
Author-X-Name-Last: Gruere 
Title: Revisiting the palm oil boom in South-East Asia: fuel versus food demand drivers 
Abstract:
				 In the past 30 years, palm oil production
 has increased ninefold, with almost all the growth occurring in Malaysia
 and Indonesia. This growth has been associated with extensive
 deforestation, with biofuels often named as the principal driver. However,
 other drivers have been less examined; in particular, restrictions on
 genetically modified food in Europe and on trans fats in many developed
 countries have led food companies to switch to using palm oil in
 production. This article uses a price analysis to examine the drivers of
 palm oil production growth during the 1980--2010 boom. Soya bean oil is
 used in the analysis as the leading vegetable oil, while crude oil
 represents the energy market; the prices of these oils, along with palm
 oil, are tested in vector autoregression (VAR) and vector error correction
 models. The two models consistently find that palm oil prices do not
 appear to respond to short-run fluctuations in crude oil prices. Rather,
 they are a function of lagged palm oil prices and current and lagged soya
 bean oil prices. Overall, the results indicate that while palm and soya
 bean oil markets have a potentially significant relationship, the crude
 oil market does not appear to have been an important driver of the palm
 oil boom.		       
Journal: Applied Economics 
Pages: 127-138 
Issue: 2 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.835479 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.835479 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:127-138




Template-Type: ReDIF-Article 1.0
Author-Name: Sophocles N. Brissimis 
Author-X-Name-First: Sophocles N. 
Author-X-Name-Last: Brissimis 
Author-Name: Eugenie N. Garganas 
Author-X-Name-First: Eugenie N. 
Author-X-Name-Last: Garganas 
Author-Name: Stephen G. Hall 
Author-X-Name-First: Stephen G. 
Author-X-Name-Last: Hall 
Title: Consumer credit in an era of financial liberalization: an overreaction to repressed demand? 
Abstract:
				 In this article, we empirically analyse
 the factors which determined consumer credit in Greece in the period
 before and after the financial liberalization, while accounting for
 significant changes in structure due to the lifting of credit restrictions
 and the subsequent impressive boom of consumer loans. We use multivariate
 cointegration techniques to estimate a vector error correction model
 (VECM) and identify separate demand and supply relationships for consumer
 loans. We introduce demand and supply-related shifts in parameters through
 the inclusion of appropriate dummy variables and trends in the long-run
 relationships. We partly deviate from the typical Johansen procedure and
 estimate the model in two steps. We find that the theoretical exclusion
 and coefficient-size restrictions on the demand and supply cointegrating
 vectors are valid. Our results are consistent with the operation of a bank
 lending channel in Greece. We also find that the supply side was mostly
 responsible for the acceleration of consumer loan growth following credit
 liberalization.		  
Journal: Applied Economics 
Pages: 139-152 
Issue: 2 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.835482 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.835482 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:139-152




Template-Type: ReDIF-Article 1.0
Author-Name: Heather Brown 
Author-X-Name-First: Heather 
Author-X-Name-Last: Brown 
Author-Name: Arne Risa Hole 
Author-X-Name-First: Arne Risa 
Author-X-Name-Last: Hole 
Author-Name: Jennifer Roberts 
Author-X-Name-First: Jennifer 
Author-X-Name-Last: Roberts 
Title: Going the same 'weigh': spousal correlations in obesity in the United Kingdom 
Abstract:
				 The obesity epidemic has received
 widespread media and research attention. However, the social phenomenon of
 obesity is still not well understood. Data from the British Household
 Panel Survey (BHPS) show positive and significant correlations in spousal
 body mass index (<italic>BMI</italic>). This article explores the three
 mechanisms of matching in the marriage market, social learning and shared
 environment to explain this correlation. We apply a novel method of
 testing for social learning by focusing on how the addition of individual
 and partner health and marriage length affects the correlation in spousal
 <italic>BMI</italic>. Results show the importance of matching in the
 marriage market in explaining correlated <italic>BMI</italic> outcomes.
 There is significant correlation in partner <italic>BMI</italic> even
 after controlling for own health, spouse health, marriage length and
 regional effects, suggesting evidence of a social influence. However, it
 does not appear to be a learning effect as the spouse health and marriage
 length are insignificant.		       
Journal: Applied Economics 
Pages: 153-166 
Issue: 2 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.837575 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.837575 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:153-166




Template-Type: ReDIF-Article 1.0
Author-Name: Mardi Dungey 
Author-X-Name-First: Mardi 
Author-X-Name-Last: Dungey 
Author-Name: Renee Fry-McKibbin 
Author-X-Name-First: Renee 
Author-X-Name-Last: Fry-McKibbin 
Author-Name: Verity Linehan 
Author-X-Name-First: Verity 
Author-X-Name-Last: Linehan 
Title: Chinese resource demand and the natural resource supplier 
Abstract:
				 This article provides empirical evidence
 on the effects of Chinese resource demand on the resource-rich natural
 resource supplier using the example of Australia. A structural VAR model
 is used to examine the effects of Chinese resource demand, commodity
 prices and foreign output on the macroeconomy with a formally specified
 mining and resource export sector. The key findings of the article are
 that shocks to Chinese demand and commodity prices result in a sustained
 increase in commodity prices and mining investment and a positive impact
 on the resource sector. However, these shocks eventually lead to lower
 real domestic output with factors of production moving out of the
 nonresource sectors and into the resource sector, resulting in a fall in
 nonresource sector output which is not fully offset by the rise in
 resource sector output. The results also indicate some market power by the
 natural resource supplier.			  
Journal: Applied Economics 
Pages: 167-178 
Issue: 2 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.835483 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.835483 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:167-178




Template-Type: ReDIF-Article 1.0
Author-Name: Faiza Azhar Khan 
Author-X-Name-First: Faiza Azhar 
Author-X-Name-Last: Khan 
Author-Name: John Hudson 
Author-X-Name-First: John 
Author-X-Name-Last: Hudson 
Title: Initial human capital or the rule of law: what matters for the income convergence of poor countries? 
Abstract:
				 The article analyses conditional
 <italic>&beta;</italic>-convergence among the low income countries using a
 panel data framework covering the period 1960 to 2008. The estimation of
 conditional income convergence is based on the augmented Solow model with
 system GMM technique for the dynamic panel data. More importantly, the
 article assesses the role of initial human capital stock and the rule of
 law in the income convergence of poor countries by considering further
 categorizations of the poor countries based on these two variables. This
 is the first study on the comparative properties of human capital and the
 rule of law in the income convergence of poor countries utilizing a
 dynamic panel framework. The full sample of low income countries does not
 show any evidence of conditional income convergence. The categorizations
 on the basis of initial human capital stock do not alter the conclusion of
 no income convergence. However, the subsample of low income countries with
 a better rule of law exhibits positive evidence of convergence towards the
 steady states. The article concludes that there exists a greater role of
 the rule of law, than initial human capital stock, in the income
 convergence of poor countries and vice versa for the high and middle
 income countries.			 
Journal: Applied Economics 
Pages: 179-189 
Issue: 2 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.831172 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.831172 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:179-189




Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Holton 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Holton 
Author-Name: Martina Lawless 
Author-X-Name-First: Martina 
Author-X-Name-Last: Lawless 
Author-Name: Fergal McCann 
Author-X-Name-First: Fergal 
Author-X-Name-Last: McCann 
Title: Firm credit in the euro area: a tale of three crises 
Abstract:
				 Using survey data from 2009 to 2011, we
 analyse the effects of the recent euro area economic, financial and
 private debt crisis on the supply of and demand for bank finance for small
 and medium enterprises (SMEs). At the country level, we identify three
 distinct aspects of the recent crisis in the euro area affecting firm
 credit through different channels. Controlling for country fixed effects,
 the impact of a weak real economy on firm credit operates both by reducing
 firms' demand for bank financing and by lenders increasing loan rejections
 and tightening terms and conditions on credit allocated. On the other
 hand, financial conditions have no significant effect on demand, but they
 do affect credit supply as we find that financial tensions worsen the
 chances of obtaining credit and its terms and conditions. We interpret
 this as evidence of a bank balance sheet channel negatively impacting
 credit provision. We find that private sector indebtedness has important
 effects on SMEs' credit access and its terms and conditions.		    
Journal: Applied Economics 
Pages: 190-211 
Issue: 2 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.824547 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.824547 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:190-211




Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Duarte 
Author-X-Name-First: Rosa 
Author-X-Name-Last: Duarte 
Author-Name: Vicente Pinilla 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Pinilla 
Author-Name: Ana Serrano 
Author-X-Name-First: Ana 
Author-X-Name-Last: Serrano 
Title: Looking backward to look forward: water use and economic growth from a long-term perspective 
Abstract:
				 Recent research has examined the
 relationship between natural resources and economic growth. Considered
 vitally important, not only for humanity's well-being but also for the
 integrity of the ecosystem, the relationship between water use and
 economic growth has nevertheless traditionally attracted little attention
 by analysts. This article studies water use trends from 1900 to 2000
 throughout the world and their relationship to the main determinants of
 economic growth. To do this, we first analyse water use trajectories.
 Second, to proceed with the determinants of water use, we reformulate the
 Ehrlich and Holdren's impact, population, affluence, technology (IPAT)
 equation (1971), decomposing water use trends into changes in economic
 demands and in water use intensity on the basis of a decomposition
 analysis. Finally, a simple scenario analysis is conducted, to project
 future water use trends under different economic, demographic and
 technological assumptions.&emsp;The empirical evidence shows that economic
 and population growth have been crucial in explaining the increase in
 water use over the past 100 years, with significant regional differences.
 Nevertheless, the decline in water use intensity has been responsible for
 a significant reduction in the growth of total water use.		    
Journal: Applied Economics 
Pages: 212-224 
Issue: 2 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.844329 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844329 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:212-224




Template-Type: ReDIF-Article 1.0
Author-Name:  H鲩court 
Author-X-Name-First:  
Author-X-Name-Last: H鲩court 
Author-Name:  Spielvogel 
Author-X-Name-First:  
Author-X-Name-Last: Spielvogel 
Title: Beliefs, media exposure and policy preferences on immigration: evidence from Europe 
Abstract:
				 This article studies the joint
 determination of beliefs about the economic impact of immigration and
 immigration policy preferences, using data from the five rounds of the
 European Social Survey (2002--2010). In addition to standard
 socio-economic characteristics, this analysis takes individual media
 consumption into account, as a determinant of opinion about immigration.
 Our results stress the important role of the endogenous determination of
 beliefs, which appears as a major determinant of policy preferences.
 Moreover, media exposure appears as a key determinant of beliefs:
 individuals who spend more time to get informed on social and political
 matters through newspapers and radio have a better opinion on the economic
 impact of immigration compared with individuals who devote time to other
 types of content.		      
Journal: Applied Economics 
Pages: 225-239 
Issue: 2 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.844330 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844330 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:225-239




Template-Type: ReDIF-Article 1.0
Author-Name: Asma Mobarek 
Author-X-Name-First: Asma 
Author-X-Name-Last: Mobarek 
Author-Name: Alovaddin Kalonov 
Author-X-Name-First: Alovaddin 
Author-X-Name-Last: Kalonov 
Title: Comparative performance analysis between conventional and Islamic banks: empirical evidence from OIC countries 
Abstract:
 This article investigates the performance of Islamic (IBs) versus
 conventional banks (CBs) around the recent financial crisis in 18 OIC
 (Organization of Islamic Conference) countries. The study primarily
 employs two dominant frontier approaches of efficiency measurement in
 banking literature. The study also estimates the soundness score of the
 banks by using Z-score methodology and attempts to explore the
 relationship between efficiency and financial stability of banks. The
 results based on the data envelopment analysis (DEA) and stochastic
 frontier analysis (SFA) approaches report that CBs are more efficient than
 their Islamic counterparts. On the contrary, Z-score reports that IBs were
 financially more stable than CBs. However, the dominance of IBs has been
 drastically lost afterwards. This might be originated by the decrease of
 Z-score of IBs in Bahrain, Kuwait and UAE, which were found as main
 front-runners among IBs in terms of financial stability. To the best of
 authors' knowledge, it is the first study that examines the efficiency of
 IBs versus CBs using two different frontier efficiency analyses and
 collates the result of frontier efficiency methods with stability
 indicator. The practical implication of the findings for IBs is to explore
 additional investment opportunity and for CBs is to uphold more financial
 stability.
Journal: Applied Economics 
Pages: 253-270 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.839863 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839863 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:253-270




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Breunig 
Author-X-Name-First: Robert 
Author-X-Name-Last: Breunig 
Author-Name: Bronwyn Garrett-Rumba 
Author-X-Name-First: Bronwyn 
Author-X-Name-Last: Garrett-Rumba 
Author-Name: Mathieu Jardin 
Author-X-Name-First: Mathieu 
Author-X-Name-Last: Jardin 
Author-Name: Yvon Rocaboy 
Author-X-Name-First: Yvon 
Author-X-Name-Last: Rocaboy 
Title: Wage dispersion and team performance: a theoretical model and evidence from baseball 
Abstract:
 We develop a general theoretical model of the effect of wage dispersion on
 team performance which nests two possibilities: wage inequality may have
 either negative or positive effects on team performance. A parameter which
 captures the marginal cost of effort, which we estimate using game-level
 data from Major League Baseball, determines whether wage dispersion and
 team performance are negatively or positively related. We find low
 marginal cost of effort; consequently, wage disparity is negatively
 related to team performance. Game and season-level regressions also
 indicate a negative relationship between inequality and performance. We
 discuss a variety of interpretations of our results.
Journal: Applied Economics 
Pages: 271-281 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.839864 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839864 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:271-281




Template-Type: ReDIF-Article 1.0
Author-Name: Lena Dr䧥r 
Author-X-Name-First: Lena 
Author-X-Name-Last: Dr䧥r 
Author-Name: Jan-Oliver Menz 
Author-X-Name-First: Jan-Oliver 
Author-X-Name-Last: Menz 
Author-Name: Ulrich Fritsche 
Author-X-Name-First: Ulrich 
Author-X-Name-Last: Fritsche 
Title: Perceived inflation under loss aversion 
Abstract:
 Building on prospect theory, we apply the concept of loss aversion to the
 formation of inflation perceptions and test empirically for nonlinearities
 in the inflation-perceptions relation for a panel of 10 Euro area
 countries. Specifically, under the assumption of loss aversion, inflation
 changes above a certain reference rate will be perceived more strongly.
 Rejecting rationality of inflation perceptions in general under symmetric
 loss and in a majority of cases under flexible loss functions, panel
 smooth transition models give evidence of nonlinearities in the
 inflation-perceptions relation regarding both actual inflation and time.
 This result is confirmed by dynamic fixed effects estimates, where the
 slope of the estimated value function is significantly steeper in the loss
 region and the implied average reference inflation rate is found close to
 2%.
Journal: Applied Economics 
Pages: 282-293 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.844328 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:282-293




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Wagner 
Title: Credit constraints and exports: evidence for German manufacturing enterprises 
Abstract:
 This study uses newly available enterprise-level data for firms from
 manufacturing industries in Germany to test for the link between credit
 constraints, measured by a credit-rating score from the leading
 credit-rating agency Creditreform, and exports. In line with hypotheses
 from a theoretical model, we find a positive link between a better
 credit-rating score of a firm and both the probability that the firm is an
 exporter and a higher share of exports in total sales. This link, though
 statistically highly significant, is not very strong from an economic
 point of view. While empirical evidence for the hypothesis that
 credit-constrained firms are less likely to start to export is, at best,
 weak, we find no evidence for a statistically significant difference in
 credit-rating scores between firms that stopped to export and firms that
 continued to export.
Journal: Applied Economics 
Pages: 294-302 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.839866 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839866 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:294-302




Template-Type: ReDIF-Article 1.0
Author-Name: Hirokazu Mizobata 
Author-X-Name-First: Hirokazu 
Author-X-Name-Last: Mizobata 
Title: What determines the Japanese firm investments: real or financial? 
Abstract:
 In this article, I test both the real and the financial frictions in the
 Japanese firm investments using structural approach. The real represents
 the nonconvex capital adjustment costs, and the financial means the
 financing constraints. These two factors have been studied for a long
 time, but rarely analysed simultaneously. Through this analysis, I find
 the following results. First, both these two factors affect Japanese firm
 investments. Second, convex adjustment costs parameter is estimated at a
 very small level. Third, this small convex adjustment costs lead to the
 model introduced in Wang and Wen (2012), which insists that the firm
 investments are determined by the upper bound of the borrowing
 constraints.
Journal: Applied Economics 
Pages: 303-311 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.839867 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839867 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:303-311




Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Yi Yu 
Author-X-Name-First: Tai-Yi 
Author-X-Name-Last: Yu 
Title: An empirical study of collaborative partnering among enterprises and government organizations for information system outsourcing 
Abstract:
 Most researches on information systems (IS) outsourcing indicate that
 public sector decides to outsource information technology (IT) services
 due to the belief that private vendors offer more cost advantages. This
 research explores government sectors of outsourcing and focus on the role
 of relationship for IS-service providers. Quantitative data of 126
 questionnaires and 30 IS demonstrate that trust, mutual dependence,
 equipment investment and information sharing are contributing factors to
 successful outsourcing long-term partnerships. Information sharing between
 the service receiver and provider is also vital in terms of equipment
 investment in long-term partnerships, and is affected by the level of
 trust that each party holds for the other within the outsourcing process.
 Conceptual model is useful in explicating important government-business
 partnering strategies - the model highlights not only the economic
 benefits that the IS-outsourcing relationship brings based on social
 exchange theory characteristics, but also suggests many additional
 relevant elements.
Journal: Applied Economics 
Pages: 312-322 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.844332 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844332 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:312-322




Template-Type: ReDIF-Article 1.0
Author-Name: Bijou Yang 
Author-X-Name-First: Bijou 
Author-X-Name-Last: Yang 
Author-Name: David Lester 
Author-X-Name-First: David 
Author-X-Name-Last: Lester 
Title: A subcultural study of credit card debt and foreclosures 
Abstract:
 This study explored predictors of credit card debt and foreclosure rates
 in the states of the USA, based on the average personality scores of the
 residents of the states obtained from an Internet questionnaire completed
 by 619 397 residents (Rentfrow <italic>et al.,</italic> 2008). It was
 found that states whose residents had higher credit card debt in the year
 2000 had residents who scored higher in openness and lower in
 agreeableness. States with higher foreclosure rates in 2007 had residents
 who scored higher in openness and also had lower average intelligence test
 scores. The results were used to argue for a subcultural approach for
 ecological studies of economic behaviour.
Journal: Applied Economics 
Pages: 323-328 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.839865 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839865 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:323-328




Template-Type: ReDIF-Article 1.0
Author-Name: Ralf Fendel 
Author-X-Name-First: Ralf 
Author-X-Name-Last: Fendel 
Author-Name: Jan-Christoph Ruelke 
Author-X-Name-First: Jan-Christoph 
Author-X-Name-Last: Ruelke 
Title: Expectations and the quantity equation - evidence from Eastern European countries 
Abstract:
 This article analyses the usefulness of the quantity equation from the
 financial market's view. We use more than 10 000 forecasts of financial
 analysts concerning projections of the growth rate of money supply, prices
 and real output for six Central and Eastern European countries to test
 whether they are internally consistent with the quantity equation. In
 particular, we report that forecasts are consistent with the quantity
 equation in high-inflation countries and high-inflation regimes.
Journal: Applied Economics 
Pages: 329-335 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.839862 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839862 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:329-335




Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Caselli 
Author-X-Name-First: Mauro 
Author-X-Name-Last: Caselli 
Title: Trade, skill-biased technical change and wages in Mexican manufacturing 
Abstract:
 This article looks at the relative importance of competing stories,
 particularly trade liberalization and skill-biased technical change, to
 explain changes in the skill premium and the real wages of unskilled and
 skilled workers in Mexican manufacturing using plant-level data. The
 channel through which technical change is observed is changes in the
 domestic price of machinery and equipment due to the availability of new
 and cheaper machines. The analysis also looks at trade-induced
 skill-biased technical change by taking into account changes in the price
 of machinery and equipment caused by changes in the tariff rate specific
 to machinery and equipment. Instrumental variables, including the price of
 machinery and equipment in the United States, are used to determine
 causality between the above effects and wages. Thus, the article provides
 evidence for some recent findings in the literature that link trade
 liberalization, skill-biased technical change occurring through technology
 embodied in machines and increases in the skill premium.
Journal: Applied Economics 
Pages: 336-348 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.848033 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848033 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:336-348




Template-Type: ReDIF-Article 1.0
Author-Name: Ant󮩯 Afonso 
Author-X-Name-First: Ant󮩯 
Author-X-Name-Last: Afonso 
Author-Name: Jo&atilde;o Tovar Jalles 
Author-X-Name-First: Jo&atilde;o Tovar 
Author-X-Name-Last: Jalles 
Title: Fiscal composition and long-term growth 
Abstract:
 We assess the fiscal composition-growth nexus, using a large country
 panel, accounting for the usually encountered econometric pitfalls. Our
 results show that revenues have no significant impact on growth whereas
 expenditures have negative effects. The same is true for the OECD with the
 addition that government revenue has a negative impact on growth. From our
 results, taxes on income are less for growth enhancing, as well as public
 wages, interest payments, subsidies and government consumption, while
 spending on education and health boosts growth.
Journal: Applied Economics 
Pages: 349-358 
Issue: 3 
Volume: 46 
Year: 2014 
Month: 1 
X-DOI: 10.1080/00036846.2013.848030 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848030 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:349-358




Template-Type: ReDIF-Article 1.0
Author-Name: John Thornton 
Author-X-Name-First: John 
Author-X-Name-Last: Thornton 
Title: Does foreign aid reduce tax revenue? Further evidence 
Abstract:
				 A common criticism of foreign aid is that
 it reduces domestic tax effort. Empirical research on the issue has been
 hampered by the failure to tackle endogeneity issues effectively. We use
 measures of geographical and cultural distance to donor countries as
 instrumental variables to uncover the causal effect of aid on tax revenue
 in a panel of 93 countries. The tax to GDP ratio is found to decrease
 following aid inflows. This reduction in tax effort is statistically and
 economically significant; a one SD increase in aid causes a 0.52
 percentage point drop in the tax-to-GDP ratio. The results indicate that
 the effect is driven by unconditional grants, whereas aid given as loans
 induces recipient governments to improve their tax effort. Our results are
 robust to changes in the sample and the use of a nearest neighbour
 matching technique to account for nonrandom assignment of aid. Our
 identification strategy is sharpened by the use of a
 difference-in-difference estimation strategy that leverages a natural
 experiment in which aid flows exogenously increased for some countries
 following the Iranian Revolution in 1979.			 
Journal: Applied Economics 
Pages: 359-373 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.829207 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829207 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:359-373




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Author-Name: Gazi Salah Uddin 
Author-X-Name-First: Gazi Salah 
Author-X-Name-Last: Uddin 
Title: On the causal nexus of remittances and poverty reduction in Bangladesh 
Abstract:
				 The aim of this article is to investigate
 the causal relationship between remittances and poverty reduction in
 Bangladesh over the period 1976 to 2010. This issue is of fundamental
 importance for the developing economy of Bangladesh. We apply newly
 developed methods by Hacker and Hatemi-J (2006, 2012) that are based on
 simulations and are robust to the violation of statistical assumptions
 especially when the sample size is small, as is the case in this article.
 Our estimation results reveal that causality nexus of poverty and
 remittances is bi-directional. We also find that the causal impact of
 poverty reduction on remittance is stronger than the reverse impact. This
 finding implies that Bangladeshi policy-makers can influence remittances
 through poverty reduction in the long run.			    
Journal: Applied Economics 
Pages: 374-382 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.844331 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844331 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:374-382




Template-Type: ReDIF-Article 1.0
Author-Name: W. Jos Jansen 
Author-X-Name-First: W. 
Author-X-Name-Last: Jos Jansen 
Author-Name: Ad C. J. Stokman 
Author-X-Name-First: Ad C. J. 
Author-X-Name-Last: Stokman 
Title: International business cycle co-movement: the role of FDI 
Abstract:
				 This article investigates the relationship
 between FDI and business cycle synchronization in the period 1982 to 2011
 for eight industrialized countries. We find that more synchronized
 business cycles are associated with stronger FDI relations in the period
 1995 to 2011, but not before 1995. More intensive FDI links are also
 associated with a greater vulnerability to lagged output spillovers from
 abroad. Our findings suggest that FDI has become a separate channel
 through which economies may affect each other and that FDI stocks are now
 an essential aspect of economic interdependence.		    
Journal: Applied Economics 
Pages: 383-393 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.844327 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844327 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:383-393




Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale 
Author-X-Name-First: Tony 
Author-X-Name-Last: Caporale 
Title: Explaining peak inflation rates prior to disinflationary policy adjustments or what got us into this mess? 
Abstract:
				 This study investigates, using annual data
 from 1974--2004, whether unionization rates, trade openness and central
 bank independence can help explain cross-national and inter-temporal
 variations in level of peak inflation prior to a disinflationary policy
 adjustment. I find that unionization is positively associated with both
 peak inflation rates whereas more independent central banks and trade
 openness are correlated with lower inflation levels. These results are
 robust to controlling for the high inflation decade of the 1970s and to
 using average (rather than peak) inflation as the explanatory variable.    
Journal: Applied Economics 
Pages: 394-399 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.848032 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848032 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:394-399




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chun Chang 
Author-X-Name-First: Shu-Chun 
Author-X-Name-Last: Chang 
Title: Implication for cities of the liberalizing national economies in twenty-first century 
Abstract:
				 For cities, the liberalization of national
 economies and the creation of a global economy have profound and
 far-reaching implications: global capitalist restructuring has been a key
 force in reshaping cities during the late1980s, 1990s and 2000s; it has
 demanded the production and use of new information technologies and in
 doing so, has forged new relationships among new technologies and new
 spatial forms and processes in cities. Technological innovation and
 territorial restructuring have also deeply modified cities' emerging
 socio-economic systems. At the centre of change are the three major global
 cities -- New York, Tokyo and London (Sassen, 1993). Other cities that
 have been affected by the liberalization and creation of a global economy
 are found mainly in newly industrializing Asian countries such as Seoul,
 Singapore and Hong Kong. Bombay, Mexico City and cities in South America
 are among countries in the developing world that have experienced some
 change in their economies in response to changing world conditions, but
 are still constrained by protectionist policies. Among these changes,
 therefore, this study will focus on structural change occurring in cities
 in the developed countries, particularly New York, London and Tokyo.	    
Journal: Applied Economics 
Pages: 400-407 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.848029 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848029 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:400-407




Template-Type: ReDIF-Article 1.0
Author-Name: Louren篠S. Paz 
Author-X-Name-First: Louren篠S. 
Author-X-Name-Last: Paz 
Title: Trade liberalization and the inter-industry wage premia: the missing role of productivity 
Abstract:
				 The literature concerning the effect of
 tariffs on the inter-industry wage premium has not addressed the role of
 total factor productivity (TFP) in determining both the wage premium and
 tariffs. This omission not only overlooks an important determinant of wage
 premium but also invalidates the use of the pre-reform tariff level as an
 instrument for the change in tariffs. Based on an analysis of Colombian
 data, I find that including TFP in the estimated model of the effects of
 tariffs on the wage premium leads to a 41% decrease in the effect of
 tariffs on the inter-industry wage premium relative to the model that
 omits TFP. More specifically, a 10 percentage point decrease in tariffs
 reduces the wage premium by 1.01%, whereas a 10% increase in TFP raise
 wage premium by 1.6%. This finding suggests the importance of using
 policies that boost productivity to offset the effect of tariffs on the
 wage premium.			   
Journal: Applied Economics 
Pages: 408-419 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.848031 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848031 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:408-419




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-pierre Fenech 
Author-X-Name-First: Jean-pierre 
Author-X-Name-Last: Fenech 
Author-Name: Hamed Vosgha 
Author-X-Name-First: Hamed 
Author-X-Name-Last: Vosgha 
Author-Name: Salwa Shafik 
Author-X-Name-First: Salwa 
Author-X-Name-Last: Shafik 
Title: Modelling the dependence structures of Australian iTraxx CDS index 
Abstract:
				 In contrast to market expectations, the
 correlation between credit default swap (CDS) spreads and their respective
 stock prices in Australia was found to be positive. The global financial
 crisis (GFC) affected the nonlinear association between the two asset
 classes with firms experiencing financial distress and stock prices
 plummeting. CDSs issuers reacted to such exogenous shocks by increasing
 their risk premiums on their spreads, reflecting the increased inherent
 risk. By splitting the data into pre- and post-GFC contexts and by
 employing the use of Archimedean copulas, we observe a negative
 co-movement in the post-GFC period. This finding is robust to several
 equity indices. Overall, such result is critical for investors engaging in
 arbitrageur activities.		       
Journal: Applied Economics 
Pages: 420-431 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.849378 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.849378 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:420-431




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian R. Fleissig 
Author-X-Name-First: Adrian R. 
Author-X-Name-Last: Fleissig 
Author-Name: Gerald A. Whitney 
Author-X-Name-First: Gerald A. 
Author-X-Name-Last: Whitney 
Title: Estimating demand elasticities under rationing 
Abstract:
				 Eliminating rationing in the United
 Kingdom following the Second World War was a concern for policy-makers
 because of potentially large fluctuations in post-war prices and the
 impact on unrationed goods. This study shows that in using virtual prices,
 elasticities can be estimated from a 'free' demand system consistent with
 observed consumer choices. Substitution estimates without accounting for
 rationing are misleading. In contrast, using virtual prices and estimating
 a 'free' market system yield results similar to those of the pre-war
 period. Results show that food rationing affected expenditure across
 unrationed goods. Rationing on other services had little effect on
 expenditure across unrationed goods.			   
Journal: Applied Economics 
Pages: 432-440 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.849379 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.849379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:432-440




Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Bajo-Rubio 
Author-X-Name-First: Oscar 
Author-X-Name-Last: Bajo-Rubio 
Author-Name: Carmen D𮠭Roldᮠ
Author-X-Name-First: Carmen 
Author-X-Name-Last: D𮠭Roldᮠ
Author-Name:  Esteve 
Author-X-Name-First:  
Author-X-Name-Last: Esteve 
Title: Sustainability of external imbalances in the OECD countries 
Abstract:
				 In this article, we provide a test of the
 sustainability of external imbalances in the OECD countries over the
 period 1970 to 2007, i.e., before the beginning of the international
 financial crisis. Specifically, we deal with the case of those countries
 that have experienced current account deficits in more than half of the
 years throughout the period of analysis, and address the recent critique
 of Bohn (2007) on unit root and cointegration tests of the intertemporal
 budget constraint.			  
Journal: Applied Economics 
Pages: 441-449 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.851779 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851779 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:441-449




Template-Type: ReDIF-Article 1.0
Author-Name: Roman Horvath 
Author-X-Name-First: Roman 
Author-X-Name-Last: Horvath 
Author-Name: Marek Rusnak 
Author-X-Name-First: Marek 
Author-X-Name-Last: Rusnak 
Author-Name: Katerina Smidkova 
Author-X-Name-First: Katerina 
Author-X-Name-Last: Smidkova 
Author-Name: Jan Zapal 
Author-X-Name-First: Jan 
Author-X-Name-Last: Zapal 
Title: The dissent voting behaviour of central bankers: what do we really know? 
Abstract:
				 We examine the determinants of the dissent
 in central bank boards voting records about monetary policy rates in the
 Czech Republic, Hungary, Sweden, the UK and the US. In contrast to
 previous studies, we consider 25 different macroeconomic, financial,
 institutional, psychological or preference-related factors jointly and use
 Bayesian model averaging (BMA) to formally assess the attendant model
 uncertainty. We find that the rate of dissent is between 5% and 20% for
 the examined central banks. Our results suggest that most of the examined
 regressors, including factors that capture the effects of inflation and
 output, are not robust determinants of voting dissent. This result
 suggests that unobserved characteristics of central bankers and different
 communication strategies drive the dissent, rather than the level of
 macroeconomic uncertainty.			
Journal: Applied Economics 
Pages: 450-461 
Issue: 4 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.851775 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851775 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:450-461




Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva 
Author-X-Name-First: Dakshina G. 
Author-X-Name-Last: De Silva 
Title: Editorial 
Journal: Applied Economics 
Pages: 463-464 
Issue: 5 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.860784 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.860784 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:463-464




Template-Type: ReDIF-Article 1.0
Author-Name: George Deltas 
Author-X-Name-First: George 
Author-X-Name-Last: Deltas 
Author-Name: Donna Ramirez Harrington 
Author-X-Name-First: Donna Ramirez 
Author-X-Name-Last: Harrington 
Author-Name: Madhu Khanna 
Author-X-Name-First: Madhu 
Author-X-Name-Last: Khanna 
Title: Green management and the nature of pollution prevention innovation 
Abstract:
				 Management systems have a strong impact on
 the level of innovation and on production operations. Understanding this
 impact sheds light on how firms function. This article examines the
 relationship between a firm's approach to environmental management and the
 nature of the pollution prevention activities or practices that it
 undertakes. We differentiate pollution prevention activities according to
 (i) four functional characteristics and (ii) visibility to consumers. We
 find that the application of the total quality management (TQM) approaches
 on pollution prevention has a stronger effect for practices that involve
 procedural changes or are of a customized nature. These are indeed the
 type of practices where one would expect TQM to have a disproportionate
 impact in decision-making effectiveness. There seems to be no
 corresponding effect on the adoption of practices that are visible to
 consumers. Our results corroborate the notion that a well-designed
 management system can help stimulate innovation, but only for specific
 types. They also help identify the types of firms that are more likely to
 benefit from adoption of TQM principles.		     
Journal: Applied Economics 
Pages: 465-482 
Issue: 5 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.857004 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857004 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:465-482




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy P. Hubbard 
Author-X-Name-First: Timothy P. 
Author-X-Name-Last: Hubbard 
Title: Trade and transboundary pollution: quantifying the effects of trade liberalization on CO<sub>2</sub> emissions 
Abstract:
				 I consider a multi-country trade model in
 which a subset of firms emit transboundary pollution as a by-product of
 production. Consumers are harmed by these emissions, creating a role for
 government intervention. Theoretically, the effects of trade
 liberalization on the level of pollution and aggregate welfare are
 ambiguous -- they depend on values of country-specific pollution
 disutility parameters. I use real-world data to estimate trade costs and
 to recover values for these disutility parameters that are consistent with
 the Nash--Walras equilibrium predicted by the model. In counterfactual
 exercises, I investigate the effects of changing trade costs on the
 aggregate level and distribution of pollution as well as the welfare of
 each country. These experiments suggest concern regarding the effect
 further trade liberalization has on the level of firm-generated pollution
 and that agreements like the Kyoto Protocol can be effective even when
 governments behave strategically.			
Journal: Applied Economics 
Pages: 483-502 
Issue: 5 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.857000 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857000 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:483-502




Template-Type: ReDIF-Article 1.0
Author-Name: Felix Groba 
Author-X-Name-First: Felix 
Author-X-Name-Last: Groba 
Title: Determinants of trade with solar energy technology components: evidence on the porter hypothesis? 
Abstract:
				 Studies analysing renewable energy (RE)
 market development usually investigate electricity capacity or investment.
 Characteristics, roles and determinants of trade with RE system components
 remain blurred. Policies are important in promoting RE utilization and
 innovation. Yet, their effect on determining exports remains ambiguous.
 The Porter hypothesis and the lead-market literature argue that
 environmental regulation leads to comparative export advantages. Empirical
 studies, however, reach diverging conclusions, rarely focus on the
 RE-sector and use broad proxies of environmental regulation.Focusing on
 solar energy technology components (SETCs), we believe this is the first
 study describing structure and development of international trade and
 estimating the role of RE policies on determining trade flows. We
 empirically estimate a gravity trade model using
 Poisson-Pseudo-Maximum-Likelihood (PPML) estimation to test the role of RE
 policies and trade barriers on SETC exports. We use panel data
 representing annual bilateral trade flows of 21 OECD countries exporting
 SETCs to 118 importing countries between 1999 and 2007.We find a rapidly
 growing market with trade dominated by Europe. The study supports the
 Porter and the lead-market hypotheses as early adopters of RE policies
 gained a comparative advantage. Analysing the importer side, the study
 suggests that regulatory policies and import tariffs determine SETC export
 flows. 		 
Journal: Applied Economics 
Pages: 503-526 
Issue: 5 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.857005 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857005 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:503-526




Template-Type: ReDIF-Article 1.0
Author-Name: Chintamani Jog 
Author-X-Name-First: Chintamani 
Author-X-Name-Last: Jog 
Author-Name: Georgia Kosmopoulou 
Author-X-Name-First: Georgia 
Author-X-Name-Last: Kosmopoulou 
Title: Experimental evidence on the performance of emission trading schemes in the presence of an active secondary market 
Abstract:
				 As auction based emission trading schemes
 (ETS) become more common in addressing climate change, it is of interest
 to study the effects of bargaining power in resale markets on original as
 well as post-resale allowance allocations in terms of prices and
 efficiency. This article provides an experimental study of first price
 private value asymmetric auctions followed by a <inline-formula
 id="ILM0001">						    <inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_857128_ilm0001.gif"/>				   
   </inline-formula>-double auction resale market opportunity. We compare
 the <inline-formula id="ILM0002">					   
       <inline-graphic xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_857128_ilm0002.gif"/>				   
   </inline-formula>-double auction to other resale regimes with an uneven
 distribution of market power and contrast initial bids, resale prices and
 efficiency. Despite the conventional wisdom that full efficiency requires
 the absence of market power, we find that <inline-formula id="ILM0003">   
					  <inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_857128_ilm0003.gif"/>				   
   </inline-formula>-double auction resale markets lead to lower efficiency
 than the monopsony resale regime. The level of efficiency achieved,
 however, is close to the highest across mechanisms that have differential
 bargaining power at the resale stage.			  
Journal: Applied Economics 
Pages: 527-538 
Issue: 5 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.857128 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857128 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:527-538




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Porcher 
Author-X-Name-First: Simon 
Author-X-Name-Last: Porcher 
Title: Efficiency and equity in two-part tariffs: the case of residential water rates 
Abstract:
				 As first noticed by Coase (1946), a
 standard result in utility regulation is that efficiency requires two-part
 tariffs with marginal prices set to marginal costs and fixed fees equal to
 each customer' s share of fixed costs. Residential water customers in
 France face marginal prices for water that average about 8% more than
 marginal costs. Under price elasticity estimates that are consistent with
 previous results in the literature, efficiency costs represent around 8
 million euros of welfare losses for 2008. Even though the impact is fairly
 small, current price schedules are an important pre-existing distortion
 which should be considered when evaluating current taxes aimed at
 addressing external costs. Moreover, efficiency gains from reformed
 tariffs could be used to fund water assistance programs focused on
 financially stressed households.		     
Journal: Applied Economics 
Pages: 539-555 
Issue: 5 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.857001 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:539-555




Template-Type: ReDIF-Article 1.0
Author-Name: Aude Le Lannier 
Author-X-Name-First: Aude Le 
Author-X-Name-Last: Lannier 
Author-Name: Simon Porcher 
Author-X-Name-First: Simon 
Author-X-Name-Last: Porcher 
Title: Efficiency in the public and private French water utilities: prospects for benchmarking 
Abstract:
				 This article uses a data envelopment
 analysis (DEA) and a stochastic frontier analysis (SFA) to assess the
 relative technical efficiency of 177 decision-making units in the French
 water supply sector in 2009. Water utilities can be directly managed by
 the local authorities or contracted out and then managed by a private
 operator. The use of a three-stage model mixing DEA and SFA enables us to
 dissociate managerial inefficiencies from the structural inefficiencies
 and statistical noise. After having taken the environmental variables into
 account, we find that private management are on average slightly less
 efficient than public management. An explanation to this performance gap
 can be different resource management.			   
Journal: Applied Economics 
Pages: 556-572 
Issue: 5 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.857002 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857002 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:556-572




Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva 
Author-X-Name-First: Dakshina G. 
Author-X-Name-Last: De Silva 
Author-Name: Rachel A. J. Pownall 
Author-X-Name-First: Rachel A. J. 
Author-X-Name-Last: Pownall 
Title: Going green: does it depend on education, gender or income? 
Abstract:
				 Sustainable development entails meeting
 our present needs without compromising the ability of future generations
 to meet their needs. This requires us to treat economic, social and
 environmental aspects in an integrated way, but little is known about the
 nature of individual preferences towards the trade-offs involved in this
 effort. For the first time, we study individual preferences towards the
 environment, social well-being and financial well-being by using a survey
 of over 1400 households in the Netherlands. Using nonparametric,
 parametric and matching methods, we find that gender and education are
 important factors for sustainability rather than income levels. Moreover,
 results indicate that educated females put the greatest value on going
 green whilst being socially minded.		      
Journal: Applied Economics 
Pages: 573-586 
Issue: 5 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.857003 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857003 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:573-586




Template-Type: ReDIF-Article 1.0
Author-Name: Vladimir Borgy 
Author-X-Name-First: Vladimir 
Author-X-Name-Last: Borgy 
Author-Name: Carine Bouthevillain 
Author-X-Name-First: Carine 
Author-X-Name-Last: Bouthevillain 
Author-Name: Claude Diebolt 
Author-X-Name-First: Claude 
Author-X-Name-Last: Diebolt 
Author-Name: Gilles Dufr鮯t 
Author-X-Name-First: Gilles 
Author-X-Name-Last: Dufr鮯t 
Title: New tools to assess fiscal and financial vulnerabilities in advanced economies 
Abstract:
				 This introduction presents a selection of
 articles dealing with the issue of measuring the fiscal and financial
 vulnerabilities in the advanced economies. These articles were presented
 at a conference organized jointly by the Banque de France and BETA in
 Strasbourg on 13--14 September. The authors show that the improvement of
 macroeconomic toolkit goes hand in hand with the strengthening of fiscal
 frameworks and the tools for managing financial tensions. They propose
 several indicators in order to capture the variety of vulnerabilities
 observed in the industrialized countries since the recent great
 depression: funding needs, market perceptions risks, stress dependence
 among sovereigns and the reactions of governments to cope with these new
 challenges.			   
Journal: Applied Economics 
Pages: 587-588 
Issue: 6 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.861585 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861585 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:587-588




Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Franco 
Author-X-Name-First: Daniele 
Author-X-Name-Last: Franco 
Author-Name: Francesco Zollino 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Zollino 
Title: Macroeconomic imbalances in Europe: institutional progress and the challenges that remain 
Abstract:
				 The article reviews the key steps in the
 construction of the Economic and Monetary Union (EMU) and the accompanying
 debate in the academics and within the European institutions, stressing
 that most vulnerabilities unveiled by the sovereign debt crisis were known
 long before the inception of the EMU. But the rules, although later
 amended, largely neglected the critical implications of macroeconomic
 imbalances for fiscal and sustainability. As the financial tensions
 deepened, significant progress has been made in enhancing European
 economic governance, including the new procedure for macroeconomic
 imbalance surveillance (EIP). The article argues that preventing and
 correcting macroeconomic imbalances is now one of the EU's most
 challenging tasks as major technical and political difficulties still need
 to be overcome. The EIP represents a major step forward in strengthening
 the EU's capability for managing the risks to macroeconomic stability,
 largely contributing to a common understanding among Member States and in
 the EU institutions of methods and tools for dealing with the fundamental
 macro drivers. The new procedure comes together with a comprehensive
 strategy of deep fiscal, financial, economic and political reform of the
 EMU. Further progress requires the will to change at both the domestic and
 the EU level in order to effectively implement the new procedures and,
 where necessary, to reinforce their scopes.			  
Journal: Applied Economics 
Pages: 589-602 
Issue: 6 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.861592 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861592 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:589-602




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Kastrop 
Author-X-Name-First: Christian 
Author-X-Name-Last: Kastrop 
Author-Name: Sarah Ciaglia 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Ciaglia 
Author-Name: Werner Ebert 
Author-X-Name-First: Werner 
Author-X-Name-Last: Ebert 
Author-Name: Sibylle Sto&#xdf;berg 
Author-X-Name-First: Sibylle 
Author-X-Name-Last: Sto&#xdf;berg 
Author-Name: Stefanie Wolff-Hamacher 
Author-X-Name-First: Stefanie 
Author-X-Name-Last: Wolff-Hamacher 
Title: Fiscal, economic and financial vulnerabilities: implications for Euro area surveillance 
Abstract:
				 Sound public finances are necessary for
 the functioning and economic prosperity of a common currency union. The
 financial, economic and European sovereign debt crises revealed that
 financial stability and economic growth also serve as prerequisites and
 that all three interact in this respect. This has made clear that
 containing related vulnerabilities and risks in order to effectively
 prevent serious crises is complex and not sufficiently addressed by the
 current institutional framework of the Euro area. Substantial
 institutional shortcomings are now being addressed by reforms. However, in
 this article, we argue that further institutional reforms are needed in
 order to integrate vulnerability and risk analyses into surveillance
 processes. Above all, we propose setting up an independent expert council
 that is charged with the evaluation of all surveillance processes.	    
Journal: Applied Economics 
Pages: 603-615 
Issue: 6 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.861588 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861588 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:603-615




Template-Type: ReDIF-Article 1.0
Author-Name: G. Lam頍
Author-X-Name-First: G. 
Author-X-Name-Last: Lam頍
Author-Name: M. Lequien 
Author-X-Name-First: M. 
Author-X-Name-Last: Lequien 
Author-Name: P.-A. Pionnier 
Author-X-Name-First: P.-A. 
Author-X-Name-Last: Pionnier 
Title: Interpretation and limits of sustainability tests in public finance 
Abstract:
				 Public debt is considered sustainable if
 discounted net repayments are expected to cover the initial debt issuance,
 i.e. if the government's inter-temporal budget constraint is expected to
 hold. With risk-averse lenders and an uncertain economic environment, Bohn
 (1995) stresses that this constraint relies on a stochastic discount
 factor which depends on lenders' preferences. To get round the difficulty
 related to the specification of private agents' preferences in empirical
 analysis, Bohn (1998) suggests to estimate fiscal reaction functions
 describing how primary surplus reacts to indebtedness. After having solved
 the econometric issues arising when primary surplus and debt have a very
 different persistence (with a nonparametric approach) or are both
 integrated (with parametric tests), we estimate fiscal reaction functions
 for France and Greece. There remain important limitations and
 interpretation difficulties that are common to all econometric
 sustainability tests.			       
Journal: Applied Economics 
Pages: 616-628 
Issue: 6 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.861587 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861587 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:616-628




Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Aloy 
Author-X-Name-First: Marcel 
Author-X-Name-Last: Aloy 
Author-Name: Gilles Dufr鮯t 
Author-X-Name-First: Gilles 
Author-X-Name-Last: Dufr鮯t 
Author-Name: Anne P駵in-Feissolle 
Author-X-Name-First: Anne 
Author-X-Name-Last: P駵in-Feissolle 
Title: Is financial repression a solution to reduce fiscal vulnerability? The example of France since the end of World War II 
Abstract:
				 This article contributes to the recent
 empirical literature on financial repression and focuses on the French
 case since the end of World War II. We find that the fiscal adjustment
 needed to lower the debt ratio has been smaller during the years of
 financial repression in comparison with those of liberalized financial
 markets. This was possible because the real interest rates were low. We
 conduct a counterfactual analysis to see whether the vulnerability of
 public finances would have been different, if, since the late 1980s, the
 governments had continued carrying out the same financial repression
 policies. We answer affirmatively showing that the cost of debt service
 would have been reduced.		     
Journal: Applied Economics 
Pages: 629-637 
Issue: 6 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.861586 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861586 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:629-637




Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Checherita-Westphal 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Checherita-Westphal 
Author-Name: Andrew Hughes Hallett 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Hughes Hallett 
Author-Name: Philipp Rother 
Author-X-Name-First: Philipp 
Author-X-Name-Last: Rother 
Title: Fiscal sustainability using growth-maximizing debt targets 
Abstract:
				 This article highlights the importance of
 debt-related fiscal rules and derives growth-maximizing public debt ratios
 from a simple theoretical model. On the basis of evidence on the
 productivity of public capital, we estimate public debt targets that
 governments should maintain if they wish to maximize growth for panels of
 OECD, EU and euro area countries. These are not arbitrary numbers, but are
 founded on long-run optimizing behaviour assuming that governments
 implement the golden rule of financing; that is, they contract debt only
 to finance public investment. Our estimates suggest that the euro area
 should target debt levels of around 50% of GDP if member states are to
 have common targets. That is about 15% points lower than the estimate for
 the growth-maximizing debt ratio in our OECD sample and comfortably within
 the Stability and Growth Pact's debt ceiling of 60% of GDP. We also
 indicate how forward-looking budget reaction functions fit into a debt
 targeting framework.		       
Journal: Applied Economics 
Pages: 638-647 
Issue: 6 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.861590 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861590 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:638-647




Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Reiss 
Author-X-Name-First: Lukas 
Author-X-Name-Last: Reiss 
Title: Fiscal sustainability using growth-maximizing debt targets 
Journal: Applied Economics 
Pages: 648-649 
Issue: 6 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.861591 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861591 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:648-649




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Schaechter 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Schaechter 
Author-Name: C. Emre Alper 
Author-X-Name-First: C. Emre 
Author-X-Name-Last: Alper 
Author-Name: Elif Arbatli 
Author-X-Name-First: Elif 
Author-X-Name-Last: Arbatli 
Author-Name: Carlos Caceres 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Caceres 
Author-Name: Giovanni Callegari 
Author-X-Name-First: Giovanni 
Author-X-Name-Last: Callegari 
Author-Name: Marc Gerard 
Author-X-Name-First: Marc 
Author-X-Name-Last: Gerard 
Author-Name: Jiri Jonas 
Author-X-Name-First: Jiri 
Author-X-Name-Last: Jonas 
Author-Name: Tidiane Kinda 
Author-X-Name-First: Tidiane 
Author-X-Name-Last: Kinda 
Author-Name: Anna Shabunina 
Author-X-Name-First: Anna 
Author-X-Name-Last: Shabunina 
Author-Name: Anke Weber 
Author-X-Name-First: Anke 
Author-X-Name-Last: Weber 
Title: A toolkit to assess fiscal vulnerabilities and risks in advanced economies 
Abstract:
				 This article presents a range of tools and
 indicators for analysing fiscal vulnerabilities and risks for advanced
 economies. The analysis covers key short-, medium- and long-term
 dimensions. Short-term pressures are captured by assessing (i) gross
 funding needs, (ii) market perceptions of default risk and (iii) stress
 dependence among sovereigns. Medium- and long-term pressures are
 summarized by (iv) medium- and long-term budgetary adjustment needs, (v)
 susceptibility of debt projections to growth and interest rate shocks and
 (vi) stochastic risks to medium-term debt dynamics. Aiming to cover a wide
 range of advanced economies and minimize data lags, has also influenced
 the selection of empirical methods. Due to these features, they can, for
 example, help inform the joint IMF--FSB Early Warning Exercise (EWE) on
 the fiscal dimensions of economic risks.			 
Journal: Applied Economics 
Pages: 650-660 
Issue: 6 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.861589 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861589 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:650-660




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Claeys 
Author-X-Name-First: Peter 
Author-X-Name-Last: Claeys 
Title: Comment on '"A toolkit to assessing fiscal vulnerabilities and risks in advanced economies" by Andrea Schaechter, C. Emre Alper, Elif Arbatli, Carlos Caceres, Giovanni Callegari, Marc Gerard, Jiri Jonas, Tidiane Kinda, Anna Shabunina and Anke Weber' 
Journal: Applied Economics 
Pages: 661-662 
Issue: 6 
Volume: 46 
Year: 2014 
Month: 2 
X-DOI: 10.1080/00036846.2013.861960 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861960 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:661-662




Template-Type: ReDIF-Article 1.0
Author-Name: Kazumasa Oguro 
Author-X-Name-First: Kazumasa 
Author-X-Name-Last: Oguro 
Author-Name: Motohiro Sato 
Author-X-Name-First: Motohiro 
Author-X-Name-Last: Sato 
Title: Public debt accumulation and fiscal consolidation 
Abstract:
				 In this study, we analyse the relationship
 between interest rates on government bonds (GB) and the fiscal
 consolidation rule by using an overlapping generation model with
 endogenous and stochastic growth settings. Our key findings are summarized
 as follows. First, contrary to conventional view, we find that interest
 rates on GB may decline as public debt accumulates relative to private
 capital. Second, the simulation reveals that the economy may exhibit
 discrete changes with divergent interest rates, implying that the observed
 trend of relatively low interest rates on GB with public debt accumulation
 may not continue indefinitely in the future. Third, fiscal consolidation
 rule plays a key role in determining equilibrium interest rates.	    
Journal: Applied Economics 
Pages: 663-673 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.851772 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851772 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:663-673




Template-Type: ReDIF-Article 1.0
Author-Name: Navaz Naghavi 
Author-X-Name-First: Navaz 
Author-X-Name-Last: Naghavi 
Author-Name: Wee-Yeap Lau 
Author-X-Name-First: Wee-Yeap 
Author-X-Name-Last: Lau 
Title: Exploring the nexus between financial openness and informational efficiency -- does the quality of institution matter? 
Abstract:
				 This article examines the empirical link
 between financial openness and informational efficiency of stock markets
 in 27 emerging markets. Improving on earlier papers, this study has used
 World Bank's Worldwide Governance Indicators (WGI) as the proxy of
 institutional development in dynamic panel data models estimated by
 generalized method of moments (GMM). Our results show, first, financial
 liberalization by itself has no impact on enhancing efficiency of stock
 market. Second, for countries with high level of institutional
 development, the interaction of trade openness and financial openness
 become significant. Third, for the same group of countries, interaction
 effect of financial liberalization and institutional development leads to
 more efficiency in stock market. Hence, our finding demonstrates the
 utmost importance of institutional development and its role on
 liberalization. Our results conclude that institutional development and
 trade openness are pre-requisites for a country to benefit from financial
 openness. Our study further provides empirical evidence to theoretical
 model proposed by Basu and Morey (2005) that governance is the missing
 link between stock market efficiency and financial liberalization. Our
 findings suggest that policy makers in developing economies should enhance
 the quality of their institution in order to optimize the benefits of
 financial liberalization.		    
Journal: Applied Economics 
Pages: 674-685 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.849380 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.849380 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:674-685




Template-Type: ReDIF-Article 1.0
Author-Name: T. Kifle 
Author-X-Name-First: T. 
Author-X-Name-Last: Kifle 
Author-Name: P. Kler 
Author-X-Name-First: P. 
Author-X-Name-Last: Kler 
Author-Name: S. Shankar 
Author-X-Name-First: S. 
Author-X-Name-Last: Shankar 
Title: Are women really that happy at work? Australian evidence on the 'contented female' 
Abstract:
				 This article investigates the apparent
 paradox of females possessing higher levels of job satisfaction compared
 to their male counterparts despite possessing worse employment outcomes.
 Postulating that the female workforce is heterogeneous by age, education
 and the presence of children, we create four groups; the aggregated, young
 and childless, young with children and the educated. The article finds
 statistical evidence of significant gender differences, though not
 uniformly so. Econometric results, however, paint a muddier picture,
 indicating that statistical results alone should not be used to
 categorically report incidences of gender differences in job satisfaction.
 Sample-selection bias results also evince sub-group heterogeneity and
 require further study. The determinants of job satisfaction vary between
 measures and sub-groups, though not necessarily so across gender. In sum,
 the article finds that the paradox does exhibit itself for the aggregated
 and young and childless sub-groups, but is largely absent for the young
 with children group. As well, there is a clear bifurcation in job
 satisfaction between genders for the educated sub-group. This suggests
 that employed females should not be viewed as a monolithic bloc in the
 labour force.			       
Journal: Applied Economics 
Pages: 686-697 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.851781 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851781 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:686-697




Template-Type: ReDIF-Article 1.0
Author-Name: Marga Peeters 
Author-X-Name-First: Marga 
Author-X-Name-Last: Peeters 
Author-Name: Ard den Reijer 
Author-X-Name-First: Ard 
Author-X-Name-Last: den Reijer 
Title: Coordination versus flexibility in wage formation: a focus on the nominal wage impact of productivity in Germany, Greece, Ireland, Portugal, Spain and the United States 
Abstract:
				 Wage coordination between countries of the
 European Monetary Union (EMU) aims at aligning nominal wage growth with
 labour productivity growth at the national level. We analyse the
 developments in Germany, the EMU's periphery countries Greece, Ireland,
 Portugal and Spain along with the United States over the period 1980 to
 2010. Apart from the contribution of productivity to nominal wages, we
 take into account the contributions of prices, unemployment, replacement
 rates and taxes by means of an econometrically estimated nonlinear
 equation resulting from a wage bargaining model. We further study the
 downward rigidities of nominal wages. The findings show that in past times
 of low productivity, price inflation and reductions in unemployment still
 put significant upward pressure on nominal wage growth. The periphery
 countries are far from aligning nominal wage growth with productivity
 growth. German productivity is a major wage determinant, but surely not
 the only one. Within the context of a free bargaining process between
 employers and labour unions, policy-makers can effectively use the
 replacement rate to steer the nominal wages outcome.			  
Journal: Applied Economics 
Pages: 698-714 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.851773 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851773 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:698-714




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Koch 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Koch 
Title: Dynamic linkages among carbon, energy and financial markets: a smooth transition approach 
Abstract:
				 This article explores how price linkages
 between carbon allowances and market fundamentals in the EU Emissions
 Trading Scheme (EU ETS) vary over time. I adopt a multivariate GARCH model
 that allows the conditional correlation between carbon, energy and
 financial prices to change smoothly across regimes governed by functions
 of two transition variables that explain why price linkages vary. I use
 (i) time as transition variable to allow for structural changes associated
 with institutional advances in the EU ETS and (ii) implied volatility to
 account for heterogeneity in the behaviour of correlations in times of
 distress compared to calm periods. The results point to a new pricing
 regime with much closer carbon-energy price linkages in the second phase
 of the EU ETS. Furthermore, I find that correlations depend on market
 uncertainty conditions, which exposes the link between carbon and
 financial markets due to common macroeconomic shocks during the current
 financial crisis.			 
Journal: Applied Economics 
Pages: 715-729 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.854301 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854301 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:715-729




Template-Type: ReDIF-Article 1.0
Author-Name: P. Montalbano 
Author-X-Name-First: P. 
Author-X-Name-Last: Montalbano 
Author-Name: S. Nenci 
Author-X-Name-First: S. 
Author-X-Name-Last: Nenci 
Title: Assessing the trade impact of the European Neighbourhood Policy on the EU-MED Free Trade Area 
Abstract:
				 The European Neighbourhood Policy (ENP)
 set an additional objective for the Southern Mediterranean Countries
 (SMCs): the prospect of 'a stake in the internal market'. The launch of
 this new policy has been the occasion for a revival of empirical studies
 aimed at assessing the impact of the EU-MED partnership on bilateral
 trade. The novelty of this work is twofold: (i) to present nonparametric
 matching estimators besides gravity estimates; (ii) to assume as a
 counterfactual of the treatment the ex-post long-run average treatment
 effects of the Europe Agreements. By controlling for likely selection bias
 and country and time heterogeneity, using both qualitative and
 quantitative measures of the policy variable, we assess
 <italic>ex-post</italic> the trade-enhancing impact of the EU preferential
 agreements towards SMCs and <italic>ex ante</italic> the actual efficacy
 of the ENP.			     
Journal: Applied Economics 
Pages: 730-740 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.851776 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851776 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:730-740




Template-Type: ReDIF-Article 1.0
Author-Name: Yizao Liu 
Author-X-Name-First: Yizao 
Author-X-Name-Last: Liu 
Title: Should further mergers be allowed? Product differentiation and merger in the external audit market 
Abstract:
				 The external audit market in US is a
 market with noticeable features: a highly concentrated market, various
 choice patterns of auditors and the sequential mergers of big auditors
 over time. There has been growing concern about the impact of mergers and
 the increasing market concentration. Using a flexible multinomial probit
 model and micro level data on over 3000 public companies, this article
 investigates production differentiation and merger in the external audit
 service market between the Big Four accounting firms. Based on the
 estimation results of the demand estimates, a model of post-merger conduct
 is then used to simulate the competitive effects of a merger. The results
 suggest that merger effects on prices in this market are not significant
 with no larger than 3%.		  
Journal: Applied Economics 
Pages: 741-749 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.851777 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851777 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:741-749




Template-Type: ReDIF-Article 1.0
Author-Name: Line Bjørnskov Pedersen 
Author-X-Name-First: Line Bjørnskov 
Author-X-Name-Last: Pedersen 
Author-Name: Julie Riise 
Author-X-Name-First: Julie 
Author-X-Name-Last: Riise 
Author-Name: Arne Risa Hole 
Author-X-Name-First: Arne Risa 
Author-X-Name-Last: Hole 
Author-Name: Dorte Gyrd-Hansen 
Author-X-Name-First: Dorte 
Author-X-Name-Last: Gyrd-Hansen 
Title: GPs' shifting agencies in choice of treatment 
Abstract:
				 Earlier studies have shown that general
 practitioners' (GPs) prescription choices are influenced by effect,
 patient costs and costs to society, patient attitude and own experience.
 This study builds on this knowledge and explores how prescription
 behaviour is affected when choices are made in different contexts, where
 the conflicting roles as agents for the patient and agents for society are
 stressed. A total of 309 Danish GPs were randomly allocated to one of
 three versions of a web-based questionnaire, which included a discrete
 choice experiment. Mixed logit models in willingness to pay (WTP) space
 were estimated with and without accounting for stated attribute
 non-attendance. Results show that the GP's role as agent for his patients
 is clearly strengthened in the presence of national recommendations. In
 contrast, when recommendations are not present and when GPs face a patient
 who is currently taking an expensive albeit effective medication, the GP
 takes on his role as agent for society. We find no evidence of status quo
 bias in such a setting, with a majority of GPs opting for a medication
 which offers less certainty about effectiveness at lower cost. 	    
Journal: Applied Economics 
Pages: 750-761 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.854305 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854305 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:750-761




Template-Type: ReDIF-Article 1.0
Author-Name: Arndt Reichert 
Author-X-Name-First: Arndt 
Author-X-Name-Last: Reichert 
Author-Name: Harald Tauchmann 
Author-X-Name-First: Harald 
Author-X-Name-Last: Tauchmann 
Title: When outcome heterogeneously matters for selection: a generalized selection correction estimator 
Abstract:
				 The classical Heckman (1976, 1979)
 selection correction estimator (heckit) is misspecified and inconsistent,
 if an interaction of the outcome variable with an explanatory variable
 matters for selection. To address this specification problem, a full
 information maximum likelihood (FIML) estimator and a simple two-step
 estimator are developed. Monte Carlo (MC) simulations illustrate that the
 bias of the ordinary heckit estimator is removed by these generalized
 estimation procedures. Along with OLS and ordinary heckit, we apply these
 estimators to data from a randomized trial that evaluates the
 effectiveness of financial incentives for reducing obesity. Estimation
 results indicate that the choice of the estimation procedure clearly
 matters.		      
Journal: Applied Economics 
Pages: 762-768 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.851780 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851780 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:762-768




Template-Type: ReDIF-Article 1.0
Author-Name: Robert M. Feinberg 
Author-X-Name-First: Robert M. 
Author-X-Name-Last: Feinberg 
Title: State antitrust enforcement in the US and implications for small business entry and relocation 
Abstract:
				 This article examines the impact of the
 important, yet little studied, state-level antitrust enforcement activity
 on entry and relocation behaviour by small US firms. Feinberg and Husted
 (2011) have shown that this enforcement, especially nonhorizontal cases,
 may be viewed by potential entrants as a negative aspect of the state
 business climate. However, they did not pursue a more disaggregate
 analysis of small firm entry behaviour; nor did they investigate different
 responses between manufacturing, wholesaling and retailing firms. Another
 related issue is the extent to which state cases filed in tandem with
 federal investigations have the same impact on establishment entry as do
 purely 'independent' cases. These considerations are dealt with in this
 article. The author uses annual state-level data from the Statistics of US
 Business to examine entry and relocation reactions to state antitrust
 enforcement by firms within three small-business categories: 1--19
 employees; 20--99 employees; 100--499 employees. Generally speaking, the
 smallest retail and wholesale firms seem to favour vigorous antitrust
 activity, especially enforcement targeted against cartel behaviour by
 suppliers. The largest small-firm retailers and wholesalers (those with
 100--499 employees) seem somewhat threatened by such activity, especially
 the more controversial nonhorizontal enforcement. However, it must be
 acknowledged that the effects on entry or relocation of small firms --
 both positive and negative -- are quite small. 			
Journal: Applied Economics 
Pages: 769-779 
Issue: 7 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.854306 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854306 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:769-779




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Author-Name: Nicolas Peypoch 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Peypoch 
Author-Name: Scott Tainsky 
Author-X-Name-First: Scott 
Author-X-Name-Last: Tainsky 
Title: Cost efficiency of French soccer league teams 
Abstract:
				 This article evaluates the operational
 activities of French soccer clubs from 2003 to 2011 by using a finite
 mixture model that allows controlling for unobserved heterogeneity. In
 doing so, a stochastic frontier latent class model, which allows the
 existence of different technologies, is adopted to estimate cost
 frontiers. This procedure not only enables us to identify different groups
 of French soccer clubs but also permits to analyse their cost efficiency.
 The main result is that there are two groups among the French soccer
 clubs, both following completely different 'technologies' to obtain league
 points, suggesting that business strategies need to be adapted to the
 characteristics of the clubs. Some managerial implications are developed.  
Journal: Applied Economics 
Pages: 781-789 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.854304 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854304 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:781-789




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Author-Name: Eduardo Roca 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Roca 
Title: Estimating the optimal hedge ratio in the presence of potential unknown structural breaks 
Abstract:
				 We propose a new approach in the
 estimation of the optimal hedge ratio that allows the hedge ratio to vary
 over time but without the necessity of frequently rebalancing the
 portfolio. We apply this in the context of the US and UK equity markets
 using weekly spot share prices and future share prices during the period 5
 January 1999 to 29 September 2009. Our method is to test for cointegration
 in the presence of two potentially unknown structural breaks by
 determining the timing of each via the underlying data. The empirical
 findings reveal that the spot and future prices are strongly cointegrated
 in each market. The estimated parameters disclose that the optimal hedge
 ratio is not constant in case of the US and the UK. We find one negative
 and one positive shift in the optimal hedge ratio in the US. However, we
 find only one significant and positive shift in the optimal hedge ratio in
 the UK. The implication of these findings from the perspective of both
 investors as well as policy-makers is elaborated on in the main text.	    
Journal: Applied Economics 
Pages: 790-795 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.854303 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854303 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:790-795




Template-Type: ReDIF-Article 1.0
Author-Name: Sam Meng 
Author-X-Name-First: Sam 
Author-X-Name-Last: Meng 
Title: How may a carbon tax transform Australian electricity industry? A CGE analysis 
Abstract:
				 The carbon tax policy proposed by
 Australian government has triggered deep concerns about the high
 electricity prices facing households and the sustainability of electricity
 industry. By employing a computable general equilibrium (CGE) model and an
 environmentally extended Social Accounting Matrix (SAM), this article
 simulates the effect of Australian carbon tax on the electricity industry.
 The modelling results show that the wholesale electricity prices indeed
 increase by about 90%, but the retailer prices only increase by 25%. The
 coal-fired electricity generators will reduce their output by 8% (for
 black-coal) to 18% (for brown-coal), but the profitability of the industry
 will drop dramatically. On the other hand, generators using oil, gas or
 renewable resources, will increase their output significantly and enjoy a
 handsome profit. Through the price, cost and profitability mechanisms, the
 carbon tax will transfer the Australian electricity generation to a low
 emission industry in the long term.			
Journal: Applied Economics 
Pages: 796-812 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.854302 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854302 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:796-812




Template-Type: ReDIF-Article 1.0
Author-Name:  Liu 
Author-X-Name-First:  
Author-X-Name-Last: Liu 
Title: Do futures prices exhibit maturity effect? A nonparametric revisit 
Abstract:
				 The maturity effect (ME) of futures prices
 postulated by Samuelson (1965) is re-examined using three nonparametric
 tests. The consistent entropy asymmetry test by Racine and Maasoumi (2007)
 indicates that variance is an appropriate risk or uncertainty measure for
 ME, and value-at-risk and expected shortfall are also adopted. The
 Kolmogorov--Smirnov dominance test and Wilcoxon rank sum and signed rank
 test are employed to rank the estimates of the three risk measures under a
 moving-window framework. The testing outcomes are contingent on futures
 type, testing method and risk measures. The testing outcomes show mild
 support for ME.		   
Journal: Applied Economics 
Pages: 813-825 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.854299 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854299 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:813-825




Template-Type: ReDIF-Article 1.0
Author-Name: Amalia Morales-Zumaquero 
Author-X-Name-First: Amalia 
Author-X-Name-Last: Morales-Zumaquero 
Author-Name: Sim󮠓osvilla-Rivero 
Author-X-Name-First: Sim󮠍
Author-X-Name-Last: Sosvilla-Rivero 
Title: Real exchange rate volatility, financial crises and exchange rate regimes 
Abstract:
				 This article examines real exchange rate
 (RER) volatility in 80 countries around the world, during the period 1970
 to 2011. Two main questions are raised: are structural breaks in RER
 volatility related to changes in exchange rate regimes or financial
 crises? And do these two events affect the permanent and transitory
 components of RER volatility? To answer these, we employ two complementary
 procedures that consist in detecting structural breaks in the RER series
 and decomposing volatility into its permanent and transitory components.
 Our results suggest that structural breaks in RER volatility coincidence
 with financial crises and certain changes in nominal exchange rate
 regimes. Moreover, our findings confirm that RER volatility does increase
 with the global financial crises and detect that the more flexible the
 exchange rate regime, the higher the volatility of the RER using a
 <italic>de facto</italic> exchange rate classification.		    
Journal: Applied Economics 
Pages: 826-847 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.859382 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859382 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:826-847




Template-Type: ReDIF-Article 1.0
Author-Name: Naneida Regina Lazarte Alcala 
Author-X-Name-First: Naneida Regina 
Author-X-Name-Last: Lazarte Alcala 
Author-Name: Lee C. Adkins 
Author-X-Name-First: Lee C. 
Author-X-Name-Last: Adkins 
Author-Name: Bidisha Lahiri 
Author-X-Name-First: Bidisha 
Author-X-Name-Last: Lahiri 
Author-Name: Andreas Savvides 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Savvides 
Title: Remittances and income diversification in Bolivia's rural sector 
Abstract:
				 This article examines the role of
 remittances in income diversification strategies in Bolivia's rural
 sector. Remittances can be consumed or invested by the recipient. As an
 investment, funds can be used for farming or to finance other nonfarm
 productions. In this article, we use a large and nationally representative
 survey to estimate the effect that remittances have on the probability of
 producing income from nonfarm activities (diversification) by using a
 bivariate probit model. Our evidence shows that remittances increase the
 probability that a rural family engages in nonfarm activities, at least in
 some regions of Bolivia. We also find evidence that the sender's decision
 to remit and the recipient's decision to diversify may be jointly
 determined. As such, this suggests that remittances may serve as a
 mechanism to overcome localized failures in Bolivia's capital markets.     
Journal: Applied Economics 
Pages: 848-858 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.854300 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854300 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:848-858




Template-Type: ReDIF-Article 1.0
Author-Name: Terence C. Cheng 
Author-X-Name-First: Terence C. 
Author-X-Name-Last: Cheng 
Author-Name: Alfons Palangkaraya 
Author-X-Name-First: Alfons 
Author-X-Name-Last: Palangkaraya 
Author-Name: Jongsay Yong 
Author-X-Name-First: Jongsay 
Author-X-Name-Last: Yong 
Title: Hospital utilization in mixed public--private system: evidence from Australian hospital data 
Abstract:
				 This article investigates whether patients
 who used a mixture of private and public hospital care have higher total
 hospital utilization than those who exclusively used either public or
 private hospital care. Using Australian hospital administrative data of
 heart disease patients, we found that those who used a mixture of private
 and public care had the highest total hospital utilization. Our findings
 are robust to how utilization is measured and endogeneity between
 utilization and hospital type choice.			  
Journal: Applied Economics 
Pages: 859-870 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.854307 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854307 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:859-870




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Hofmarcher 
Author-X-Name-First: Paul 
Author-X-Name-Last: Hofmarcher 
Author-Name: Stefan Kerbl 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Kerbl 
Author-Name: Bettina Grün 
Author-X-Name-First: Bettina 
Author-X-Name-Last: Grün 
Author-Name: Michael Sigmund 
Author-X-Name-First: Michael 
Author-X-Name-Last: Sigmund 
Author-Name: Kurt Hornik 
Author-X-Name-First: Kurt 
Author-X-Name-Last: Hornik 
Title: Model uncertainty and aggregated default probabilities: new evidence from Austria 
Abstract:
				 Understanding the determinants of
 aggregated corporate default probabilities (PDs) has attracted substantial
 research interest over the past decades. This study addresses two major
 difficulties in understanding the determinants of aggregate PDs: model
 uncertainty and multicollinearity among the regressors. We present
 Bayesian model averaging (BMA) as a powerful tool that overcomes model
 uncertainty. Furthermore, we supplement BMA with ridge regression to
 mitigate multicollinearity. We apply our approach to an Austrian data set.
 Our findings suggest that factor prices like short-term interest rates
 (STIs) and energy prices constitute major drivers of default rates, while
 firms' profits reduce the expected number of failures. Finally, we show
 that the results of our model are fairly robust with respect to the choice
 of the BMA parameters. 		       
Journal: Applied Economics 
Pages: 871-879 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.859378 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859378 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:871-879




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Ochmann 
Author-X-Name-First: Richard 
Author-X-Name-Last: Ochmann 
Title: Differential income taxation and household asset allocation 
Abstract:
				 This article empirically investigates the
 effects of differential income taxation on households' portfolio choice
 and asset allocation, applying a two-stage budgeting model of asset demand
 to German survey data. The model is structured into the discrete and the
 continuous asset choice. Cross-sectional variation in marginal tax rates,
 appropriately instrumented, as well as over-time variation from a major
 tax reform are used to identify the tax effects. Households with higher
 tax rates are found to have relatively greater demand for tax-privileged
 assets, such as nonowner-occupied housing, mortgage repayments, building
 society deposits, stocks, insurances and consumer credits, than households
 with lower tax rates. Demand at higher tax rates is lower for
 owner-occupied housing, bank deposits and bonds.		      
Journal: Applied Economics 
Pages: 880-894 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.859381 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859381 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:880-894




Template-Type: ReDIF-Article 1.0
Author-Name: Theoharry Grammatikos 
Author-X-Name-First: Theoharry 
Author-X-Name-Last: Grammatikos 
Author-Name: Robert Vermeulen 
Author-X-Name-First: Robert 
Author-X-Name-Last: Vermeulen 
Title: The 2007--2009 financial crisis: changing market dynamics and the impact of credit supply and aggregate demand sensitivity 
Abstract:
				 This article singles out the determinants
 of changes in US firms' systematic risk and idiosyncratic return induced
 by the 2007--2009 financial crisis. After establishing that systematic
 risk changes during the crisis, the results show that higher operational
 and financial leverage coincide with an increase in systematic risk, while
 high cash availability is associated with a decrease in systematic risk.
 The crisis-induced idiosyncratic return worsens with increasing financial
 leverage, higher sensitivity to aggregate demand shocks and banking sector
 problems, and lower operational leverage. Additional results show that the
 aforementioned variables have economically large effects on firm
 performance during the crisis. 		 
Journal: Applied Economics 
Pages: 895-911 
Issue: 8 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.859379 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:895-911




Template-Type: ReDIF-Article 1.0
Author-Name: David A. Volkman 
Author-X-Name-First: David A. 
Author-X-Name-Last: Volkman 
Author-Name: Olivier J. P. Maisondieu Laforge 
Author-X-Name-First: Olivier J. P. 
Author-X-Name-Last: Maisondieu Laforge 
Author-Name: Mark Wohar 
Author-X-Name-First: Mark 
Author-X-Name-Last: Wohar 
Title: The conditional influence of term spread and pattern changes on future equity returns 
Abstract:
				 We extend previous research examining the
 relation between interest rates and equity returns using a multivariate
 analysis of covariance model with a dynamic yield curve and conditioned
 term spread. We find yield pattern changes predict economic equity
 returns; that the long end-of-yield curve is a strong determinant factor;
 and, in contrast to previous research, we find no relation between a
 decrease in the short rate and equity returns. However, the conditional
 term spread captures a significant positive return indicating that the
 degree of decline in the short rate relative to the long rate is of more
 importance than the term spread alone. 		     
Journal: Applied Economics 
Pages: 913-923 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.859377 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859377 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:913-923




Template-Type: ReDIF-Article 1.0
Author-Name: Denise Doiron 
Author-X-Name-First: Denise 
Author-X-Name-Last: Doiron 
Author-Name: Jane Hall 
Author-X-Name-First: Jane 
Author-X-Name-Last: Hall 
Author-Name: Patricia Kenny 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Kenny 
Author-Name: Deborah J. Street 
Author-X-Name-First: Deborah J. 
Author-X-Name-Last: Street 
Title: Job preferences of students and new graduates in nursing 
Abstract:
				 This article investigates the preferences
 of student and newly graduated nurses for pecuniary and nonpecuniary
 aspects of nursing jobs. It is the first study applying methods based on
 discrete choice experiments to a developed country nursing workforce. It
 is also the first to focus on the transition through university training
 and into work. This is particularly important as junior nurses have the
 lowest retention levels in the profession. We sample 526 individuals from
 nursing programmes in two Australian universities. Flexible and newly
 developed models combining heteroscedasticity with unobserved
 heterogeneity in scale and preference weights are estimated. Overall,
 salary remains the most important feature in increasing the probability
 that a job will be selected. 'Supportive management/staff' and 'quality of
 care' follow as the most important attributes from a list of 11
 nonpecuniary characteristics. However, the subset of new graduates rank
 'supportive management/staff' above salary increases, emphasizing the
 importance of a supportive workplace in the transition from university to
 the workplace. We find substantial preference heterogeneity and some
 attributes, such as the opportunity for clinical rotations, are found to
 be attractive to some nurses while seen as negative by others. Nursing
 retention could be improved by designing different employment packages to
 appeal to these different tastes.			 
Journal: Applied Economics 
Pages: 924-939 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.861584 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861584 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:924-939




Template-Type: ReDIF-Article 1.0
Author-Name: Apostolos Tsiachristas 
Author-X-Name-First: Apostolos 
Author-X-Name-Last: Tsiachristas 
Author-Name: Maureen P. M. H. Rutten-van Mölken 
Author-X-Name-First: Maureen P. M. H. 
Author-X-Name-Last: Rutten-van Mölken 
Title: Exploring the variability of patient costs in disease management programs: a hierarchical modelling approach 
Abstract:
				 Disease management programs include a wide
 variation of patients with different chronic diseases and different health
 care utilization. The aim of this article was to identify factors on
 patient-level and organizational-level that explain the variability in
 costs of patients with different chronic diseases enrolled in a DMP by
 employing a rigorous analytical model. A generalized linear mixed model
 (GLMM) was specified to perform a multi-level analysis of cross-sectional
 hierarchical data from 16 DMPs in the Netherlands. Multiple imputation,
 sub-group analysis per disease and analysis from both the health care and
 the societal perspectives were also performed. Our model showed that age,
 the presence of cardiovascular disease, multi-morbidity and payments on
 top of the payment for the usual care had positive relation with costs,
 while better quality of life was associated with lower health care costs.
 In the COPD sample, physical activity and employment were associated with
 health care costs. Our study showed that there is great variability in
 health care costs among patients included in DMPs and identified patient
 and organizational explanatory factors. The findings are relevant to the
 design of future DMPs and their payment schemes.		     
Journal: Applied Economics 
Pages: 940-951 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.864044 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:940-951




Template-Type: ReDIF-Article 1.0
Author-Name: Ruud Gerards 
Author-X-Name-First: Ruud 
Author-X-Name-Last: Gerards 
Author-Name: Andries de Grip 
Author-X-Name-First: Andries 
Author-X-Name-Last: de Grip 
Author-Name: Maaike Witlox 
Author-X-Name-First: Maaike 
Author-X-Name-Last: Witlox 
Title: 'Employability-miles' and worker employability awareness 
Abstract:
				 This article studies the use and impact of
 a ('Employability-miles') voucher scheme. These vouchers could be used for
 participation in a restricted number of training courses, which all aim to
 stimulate employees to develop a more active attitude towards their own
 employability. Using data from two surveys of one firm's workforce, we
 find that voucher use is related to various personality traits and
 personal characteristics. In particular, a worker's ambition, goal setting
 and education level are positively related to voucher use. In addition,
 workers with longer tenure spend their vouchers more often. Conversely,
 workers with a more positive self-image as well as those who are
 negatively reciprocal spend their vouchers less often. The negative
 relation between voucher use and negative reciprocity suggests that
 workers who are more negatively reciprocal perceive the voucher as an HR
 tool for outplacement. Further, we find that voucher use positively
 affects worker employability awareness and willingness to train.
 Remarkably, participation in non voucher training shows little relation to
 personality traits. From a human resources (HR) perspective, this finding
 suggests that by employing a voucher scheme, the firm makes training
 participation more dependent on employee personality and individual
 characteristics instead of the HR development strategy of the firm.	    
Journal: Applied Economics 
Pages: 952-965 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.864036 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864036 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:952-965




Template-Type: ReDIF-Article 1.0
Author-Name: Chunpeng Yang 
Author-X-Name-First: Chunpeng 
Author-X-Name-Last: Yang 
Author-Name: Rengui Zhang 
Author-X-Name-First: Rengui 
Author-X-Name-Last: Zhang 
Title: Does mixed-frequency investor sentiment impact stock returns? Based on the empirical study of MIDAS regression model 
Abstract:
				 We examine whether mixed-frequency
 investor sentiment affects stock returns. In line with recent evidence
 from China, we find that the aggregate effect and the individual effect of
 mixed-frequency investor sentiment are statistically significant, and
 mixed-frequency investor sentiment is more important than the
 low-frequency one. Moreover, mixed-frequency investor sentiment, which is
 mixed by high-frequency data, can be more important than the market
 premium.			  
Journal: Applied Economics 
Pages: 966-972 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.864041 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864041 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:966-972




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi 
Author-X-Name-First: Fredj 
Author-X-Name-Last: Jawadi 
Author-Name: Sushanta Kumar Mallick 
Author-X-Name-First: Sushanta Kumar 
Author-X-Name-Last: Mallick 
Author-Name: Ricardo Magalh&atilde;es Sousa 
Author-X-Name-First: Ricardo Magalh&atilde;es 
Author-X-Name-Last: Sousa 
Title: Nonlinear monetary policy reaction functions in large emerging economies: the case of Brazil and China 
Abstract:
				 This article estimates monetary policy
 rules for two key emerging market economies: Brazil and China. It analyses
 whether the monetary authority reacts to changes in economic activity,
 financial markets, monetary conditions, the foreign exchange market and
 the commodity price. We assess the importance of nonlinearity using a
 smooth transition regression (STR) model. Using quarterly data over the
 time period 1990:1 to 2008:4, we find that considerations about the output
 gap and the real effective exchange rate (in the case of Brazil), and the
 inflation rate (for China) explain the nonlinear adjustment of the central
 bank rate. Moreover, the results suggest that central banks pursue a
 target range for the threshold variable rather than a specific point
 target. In the case of China, the McCallum rule shows that the GDP growth,
 the interest rate and the commodity price drive the response of the growth
 rate of the relevant monetary aggregate.			  
Journal: Applied Economics 
Pages: 973-984 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.851774 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851774 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:973-984




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Ivrendi 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Ivrendi 
Author-Name: Douglas K. Pearce 
Author-X-Name-First: Douglas K. 
Author-X-Name-Last: Pearce 
Title: Asset prices and expected monetary policy: evidence from daily data 
Abstract:
				 This article explores the relationships
 among Libor, gold prices, the exchange rate, oil prices, fed funds futures
 prices and stock prices at a daily frequency. This article examines
 whether expected monetary policy, measured by changes in the prices of fed
 funds futures contracts, reacts to high frequency changes in asset prices
 and, in turn, whether asset prices respond to changes in expected monetary
 policy. The article reveals that there are statistically significant
 relationships between expected US monetary policy and shocks to Libor and
 exchange rates. It also reveals that there is no evidence of a systematic
 relationship between stock prices and expected monetary policy changes.
 Splitting the data into expansionary and recessionary periods using NBER
 dating, we find results for the expansionary periods that are very similar
 to the results for the entire period. For the periods of recession, we
 find little evidence of significant linkages between markets.		    
Journal: Applied Economics 
Pages: 985-995 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.864038 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:985-995




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Biewen 
Author-X-Name-First: Martin 
Author-X-Name-Last: Biewen 
Author-Name: Constantin Weiser 
Author-X-Name-First: Constantin 
Author-X-Name-Last: Weiser 
Title: An empirical test of marginal productivity theory 
Abstract:
				 We explore an hitherto unused approach to
 testing marginal productivity theory. Our method rests on the simple idea
 that, under the assumption of a linear homogeneous production function,
 residual profits are informative about the discrepancies between factor
 payments and marginal products. Our empirical application using data on
 manufacturing plants in Chile suggest moderate deviations from marginal
 productivity theory which depend on firm size. 		     
Journal: Applied Economics 
Pages: 996-1020 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.864042 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:996-1020




Template-Type: ReDIF-Article 1.0
Author-Name: Niels Hermes 
Author-X-Name-First: Niels 
Author-X-Name-Last: Hermes 
Title: Does microfinance affect income inequality? 
Abstract:
				 This study addresses the question whether
 participation of the poor in microfinance contributes to reducing a
 country's level of income inequality. Using data from 70 developing
 countries, we show that higher levels of microfinance participation are
 indeed associated with a reduction of the income gap between rich and poor
 people. We also show, however, that the effects of microfinance on
 reducing income inequality are relatively small. The results of this study
 add to the discussion on the impact of microfinance on poverty by showing
 that, although access to microfinance does seem to improve the relative
 income position of the poor, this improvement is modest, which is probably
 because the use of microfinance is generally small as compared to the size
 of the economy of the countries in our sample. Microfinance should,
 therefore, not be seen as a panacea for bringing down income inequality in
 a significant way.		       
Journal: Applied Economics 
Pages: 1021-1034 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.864039 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:1021-1034




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Uyar 
Author-X-Name-First: Ali 
Author-X-Name-Last: Uyar 
Author-Name: Cemil Kuzey 
Author-X-Name-First: Cemil 
Author-X-Name-Last: Kuzey 
Title: Determinants of corporate cash holdings: evidence from the emerging market of Turkey 
Abstract:
				 This study analyses the factors that might
 explain the level of corporate cash holdings in a broad sample of
 Turkish-listed nonfinancial firms over the period 1997 to 2011. The
 empirical results reveal that, on average, Turkish firms hold 9.1% of
 their total assets as cash and cash equivalents. There is a steadily
 increasing trend in cash holding across the years. Both the system GMM and
 the difference GMM regression results are consistent; almost exactly the
 same variables are significant and going in the same direction. The
 findings indicate that the previous year's cash holding is positive and
 significant determinant at the current year's cash level, suggesting that
 these firms have a targeted cash level. Furthermore, the results reveal
 that cash flow and growth opportunities have positive and significant
 impact on the cash level. However, the amount of capital expenditures,
 liquid assets used as cash substitute, the degree of tangibility of
 assets, financial debt ratio and leverage have negative and significant
 impact on the cash level. Most of these explanatory variables were in line
 with our theoretical background and with previous studies as well.	    
Journal: Applied Economics 
Pages: 1035-1048 
Issue: 9 
Volume: 46 
Year: 2014 
Month: 3 
X-DOI: 10.1080/00036846.2013.866203 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:1035-1048




Template-Type: ReDIF-Article 1.0
Author-Name: Xinhua Gu 
Author-X-Name-First: Xinhua 
Author-X-Name-Last: Gu 
Author-Name: Pui Sun Tam 
Author-X-Name-First: Pui Sun 
Author-X-Name-Last: Tam 
Title: Market structure and casino taxation in tourist resorts 
Abstract:
				 This article examines the association of
 tax effects with market structure for casino gaming. We show that if
 market structure is uncompetitive, much of casino taxation falls on
 tourists whose demand is inelastic relative to supply. The tax is likely
 to be efficient under strong external demand if imposed on oligopoly
 casinos with a monopoly location in a cross-border market. The likelihood
 of economically 'good' taxation is greater under oligopoly than under
 competition but lower than under monopoly. Casino taxes should be lowered
 in a more competitive market with weaker external demand. Our prediction
 is consistent with the evidence found from casino tourism development in
 Macao with 'high' gambling taxes.		     
Journal: Applied Economics 
Pages: 1049-1057 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.864037 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864037 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1049-1057




Template-Type: ReDIF-Article 1.0
Author-Name: Alfred A. Haug 
Author-X-Name-First: Alfred A. 
Author-X-Name-Last: Haug 
Title: On real interest rate persistence: the role of breaks 
Abstract:
				 The role of structural breaks in long
 spans of ex-post real interest rates for 10 industrialized countries is
 studied. First, the persistence of the real interest is assessed with
 newly proposed low-frequency tests of Müller and Watson (2008). Second,
 the test of Leybourne <italic>et al.</italic> (2007) for a change in
 persistence of a time series is applied to the real interest rate. The
 results show that real interest rates over the full sample period do not
 fit a covariance-stationary or unit-root model, nor a fractionally
 integrated, near-unit-root or local-level model. Instead, the persistence
 of real rates changes over time and there are periods when the real rate
 is covariance-stationary and other periods when it follows a unit-root
 process.		   
Journal: Applied Economics 
Pages: 1058-1066 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.864043 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1058-1066




Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Buzzacchi 
Author-X-Name-First: Luigi 
Author-X-Name-Last: Buzzacchi 
Author-Name: Stefano Pedrini 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Pedrini 
Title: Does player specialization predict player actions? Evidence from penalty kicks at FIFA World Cup and UEFA Euro Cup 
Abstract:
				 Penalty kicks are analysed in the
 literature as 'real life experiments' for assessing the use of rational
 mixed strategies by professional players. However, each penalty kick
 cannot be considered a repetition of the same event because of the varying
 background conditions, in particular the heterogeneous ability of
 different players. Consequently, aggregate statistics over data sets
 composed of a large number of penalty kicks mediate the behaviour of the
 players in <italic>different</italic> games, and the properties of optimal
 mixed strategies cannot be tested directly because of <italic>aggregation
 bias</italic>. In this article, we model the heterogeneous ability of
 players. We then test the hypothesis that differently talented players
 randomize over different actions. To achieve this aim, we study a data set
 that collects penalties kicked during shoot-out series in the last
 editions of FIFA World Cup and UEFA Euro Cup (1994--2012) where kickers
 are categorized as specialists and non-specialists. The results support
 our theoretical predictions.		       
Journal: Applied Economics 
Pages: 1067-1080 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.866205 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1067-1080




Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuelle Pi鲡rd 
Author-X-Name-First: Emmanuelle 
Author-X-Name-Last: Pi鲡rd 
Author-Name: Paul Grootendorst 
Author-X-Name-First: Paul 
Author-X-Name-Last: Grootendorst 
Title: Do downturns cause desperation? The effect of economic conditions on suicide rates in Canada 
Abstract:
				 There is conflicting evidence concerning
 the impact of macroeconomic conditions on suicide rates. To help resolve
 this pertinent question, we present evidence using Canadian data. We
 estimate feasible generalized least squares models of annual
 gender-specific suicide rates in the working age population (aged 25--64)
 using data from each of the 10 Canadian provinces over the period 1982 to
 2007. We allow for heteroscedasticity across provinces and first-order
 autocorrelation common to all provinces. We posit that suicide rates in
 this population are a function of macroeconomic conditions (current and
 lagged unemployment rates and real per capita GDP) and other determinants
 that might be correlated with macro conditions, such as physician supply.
 We find that different factors affect suicide rates across genders and
 that some of the results are sensitive to the specification of the model
 we use and the regressors included. Generally, economic conditions affect
 men more than women; suicide rates are counter-cyclical and a higher
 supply of psychiatrists in a province is correlated with lower suicide
 rates. 			
Journal: Applied Economics 
Pages: 1081-1092 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.866204 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866204 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1081-1092




Template-Type: ReDIF-Article 1.0
Author-Name: Gregory A. Falls 
Author-X-Name-First: Gregory A. 
Author-X-Name-Last: Falls 
Author-Name: Paul A. Natke 
Author-X-Name-First: Paul A. 
Author-X-Name-Last: Natke 
Title: College football attendance: a panel study of the Football Bowl Subdivision 
Abstract:
				 Panel data with an instrumented real
 ticket price are used to estimate a regular season game-day attendance and
 per cent of capacity regression equations. Better team performance,
 whether short term (season wins), intermediate term (bowls games in last
 10 years) or long term (lifetime winning percentage), higher undergraduate
 enrolment, traditional rivalries and video coverage increase per cent of
 capacity used. Poor weather (more rain or cloud cover), higher travel
 costs and larger local population decrease it. Fan interest wanes as a
 season progresses, but this is offset as a team wins more games. Games
 played near a National Football League stadium, those with conference
 opponents, non-FBS opponents and non-BCS opponents have lower stadium
 utilization. The substantive results of the analysis do not change when
 attendance is used as the dependent variable rather than per cent of
 capacity.			   
Journal: Applied Economics 
Pages: 1093-1107 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.866208 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866208 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1093-1107




Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Maria Cervellati 
Author-X-Name-First: Enrico Maria 
Author-X-Name-Last: Cervellati 
Author-Name: Riccardo Ferretti 
Author-X-Name-First: Riccardo 
Author-X-Name-Last: Ferretti 
Author-Name: Pierpaolo Pattitoni 
Author-X-Name-First: Pierpaolo 
Author-X-Name-Last: Pattitoni 
Title: Market reaction to second-hand news: inside the attention-grabbing hypothesis 
Abstract:
				 This article investigates whether the
 market reaction to second-hand information is due to price pressure or
 information dissemination. We use the perspective of attention grabbing to
 analyse the market reaction to the dissemination of analysts'
 recommendations published in print media. This perspective is able to
 explain the asymmetric market reaction to 'buy' and 'sell' advice, which
 is difficult to rationalize within the price pressure hypothesis. We base
 our empirical analysis on the content of a weekly column in the most
 important Italian financial newspaper, which publishes past information
 and analysts' recommendations on listed companies. Our findings show
 asymmetric price and volume reactions on the publication day. Contrary to
 previous evidence, we document a positive relationship between the number
 of analysts quoted in the column and the price (volume) increase
 associated with positive recommendations. Because the weekly columns seem
 to simply attract investors' attention, with no additional new
 information, observing a reaction positively related to the column's
 salience (proxied by the number of quoted analysts) is natural. In
 addition, we find that the market reaction is higher when the order size
 is lower, i.e., when individual investors' trades constitute a higher
 fraction of the total trading activity in the market.			   
Journal: Applied Economics 
Pages: 1108-1121 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.866206 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866206 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1108-1121




Template-Type: ReDIF-Article 1.0
Author-Name: Julia Clapper 
Author-X-Name-First: Julia 
Author-X-Name-Last: Clapper 
Author-Name: Steven B. Caudill 
Author-X-Name-First: Steven B. 
Author-X-Name-Last: Caudill 
Title: Water quality and cottage prices in Ontario 
Abstract:
				 We use hedonic analysis to show that water
 clarity has a significant effect on lakefront property values in the Near
 North Ontario, Canada. In this study, water clarity is measured by Secchi
 disc reading. Based on two different dependent variables; sales price and
 sales price per square foot, and the estimation of linear, log--linear and
 log--log models, we find that water clarity does matter to lakefront
 property buyers in the Near North, Ontario. In particular, our results
 indicate that buyers are willing to pay about 2% more for each 1-foot
 increase in water clarity or Secchi depth. This finding is consistent
 across all of our specifications.		     
Journal: Applied Economics 
Pages: 1122-1126 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.851778 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851778 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1122-1126




Template-Type: ReDIF-Article 1.0
Author-Name: Ginny Ju-Ann Yang 
Author-X-Name-First: Ginny Ju-Ann 
Author-X-Name-Last: Yang 
Author-Name: Horace Chueh 
Author-X-Name-First: Horace 
Author-X-Name-Last: Chueh 
Author-Name: Chen-Hsun Lee 
Author-X-Name-First: Chen-Hsun 
Author-X-Name-Last: Lee 
Title: Examining the theory of capital structure: signal factor hypothesis 
Abstract:
				 The aim of this study was to explore how
 various levels of information asymmetry affect the capital structure of
 listed companies in Taiwan and China. Regression results over the past few
 decades have indicated that the trade-off theory lacks explanatory power,
 bringing into question the accuracy of the static trade-off theory and the
 existence of an optimal capital structure. On the other hand, the
 financial decisions of companies do not always appear consistent with the
 pecking order theory. Building on the research of Chou <italic>et
 al.</italic> (2011), this study sought to verify the signal factor
 hypothesis, which combines the trade-off theory with the pecking order
 theory.This study was the first one to employ the panel KPSS test with
 sharp drifts, developed by Chang and Ranjbar (2012), as well as the
 Fourier function to verify that an optimal capital structure does exist
 for companies with more symmetric information, thereby establishing the
 trade-off theory. Firms with information asymmetry show adverse selection
 costs, which supports the pecking order theory and rejects the existence
 of an optimal capital structure.			  
Journal: Applied Economics 
Pages: 1127-1133 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.864040 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864040 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1127-1133




Template-Type: ReDIF-Article 1.0
Author-Name: Fran篩s-&Eacute;ric Racicot 
Author-X-Name-First: Fran篩s-&Eacute;ric 
Author-X-Name-Last: Racicot 
Author-Name: Raymond Th鯲et 
Author-X-Name-First: Raymond 
Author-X-Name-Last: Th鯲et 
Title: Cumulant instrument estimators for hedge fund return models with errors in variables 
Abstract:
				 We revisit the factors incorporated in
 asset pricing models following the recent developments in financial
 markets -- i.e., the rise of shadow banking and the change in the
 transmission channel of monetary policy. We propose two versions of the
 Fung and Hsieh (2004) hedge fund return model, especially an augmented
 market model which accounts for the new dynamics of financial markets and
 the procyclicality of hedge fund returns. We run these models with an
 innovative Hausman procedure, tackling the measurement errors embedded in
 the models factor loadings. Our empirical method also allows for
 confronting the drawbacks of the instruments used to estimate hedge fund
 asset pricing models.			 
Journal: Applied Economics 
Pages: 1134-1149 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.868591 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868591 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1134-1149




Template-Type: ReDIF-Article 1.0
Author-Name: Su Zhou 
Author-X-Name-First: Su 
Author-X-Name-Last: Zhou 
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Smooth structural breaks and the stationarity of the yen real exchange rates 
Abstract:
				 This article examines and solves an
 interesting paradox in the literature that the tests for purchasing power
 parity (PPP) based on the yen real exchange rates (RERs) refute the PPP
 hypothesis more often than those with other major currency-based RERs, and
 the evidence is sensitive to the sample period used. Using a new empirical
 methodology accounting for both nonlinearity and multiple smooth temporary
 breaks in the data, we show that the puzzling finding is due to the
 failure to take into account the long but temporary large rise and fall in
 the yen RERs. The results illustrate that the yen RERs in the post-Bretton
 Woods period are likely mean reverting with linear or nonlinear adjustment
 toward large, long swing type of infrequent smooth temporary changes
 around constant equilibrium values, supporting the validity of PPP and
 resolving the paradox. 		 
Journal: Applied Economics 
Pages: 1150-1159 
Issue: 10 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.868587 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868587 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1150-1159




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel 
Author-X-Name-First: Rajeev K. 
Author-X-Name-Last: Goel 
Title: PACking a punch: Political Action Committees and corruption 
Abstract:
				 Political Action Committees (PACs) are
 unique and prominent players in American politics. Yet, formal research on
 some aspects of PACs is lacking. Using US data over the period 1970 to
 2009, this research demonstrates that the growth in PACs is positively
 associated with greater corruption. A 10% increase in the number of PACs
 per capita would increase corruption by about 8%. Upon disaggregation,
 corporate PACs, rather than labour PACs, are positively associated with
 corruption. The effects of economic prosperity, government size and
 population on US corruption are generally in line with the literature.     
Journal: Applied Economics 
Pages: 1161-1169 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.868589 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868589 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1161-1169




Template-Type: ReDIF-Article 1.0
Author-Name: Kerstin Bernoth 
Author-X-Name-First: Kerstin 
Author-X-Name-Last: Bernoth 
Author-Name: Roberta Colavecchio 
Author-X-Name-First: Roberta 
Author-X-Name-Last: Colavecchio 
Title: The macroeconomic determinants of private equity investment: a European comparison 
Abstract:
				 A strong private equity (PE) market is a
 cornerstone for commercialization and innovation in modern economies.
 However, substantial differences exist in the relative amounts raised and
 invested in PE across European countries. We investigate the macroeconomic
 determinants of PE investment in Europe, focusing on the comparison
 between Central and Eastern European (CEE) and Western European countries.
 Our estimations are based on a data set running from 2001 to 2011 that
 covers 16 countries. Applying robust estimation techniques, we identify a
 'robust' set of determinants of PE activity in both regions. We find
 similarities as well as differences in the driving forces of PE
 investments in Western European and CEE countries. Our results suggest
 that economic activity, the inflation rate, equity market capitalization,
 unit labour costs, the unemployment rate as well the the institutional and
 legal environment are significant determinants of PE activity. 	    
Journal: Applied Economics 
Pages: 1170-1183 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.866306 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866306 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1170-1183




Template-Type: ReDIF-Article 1.0
Author-Name: Zheng Yang 
Author-X-Name-First: Zheng 
Author-X-Name-Last: Yang 
Author-Name: Anthony H. Tu 
Author-X-Name-First: Anthony H. 
Author-X-Name-Last: Tu 
Author-Name: Yong Zeng 
Author-X-Name-First: Yong 
Author-X-Name-Last: Zeng 
Title: Dynamic linkages between Asian stock prices and exchange rates: new evidence from causality in quantiles 
Abstract:
				 This article applies the Granger causality
 test in quantiles to investigate causal relations between stock returns
 and exchange rate changes for nine Asian markets over the period 1 January
 1997 to 16 August 2010. Our empirical results indicate that the quantile
 causal relations vary across different quantiles and different periods.
 Although the causal effects of exchange rate changes on stock returns (or
 stock returns on exchange rate changes) are heterogeneous across
 quantiles, the overall evidence suggests that most stock and foreign
 exchange markets are negatively correlated. The result shows that there
 are more bidirectional causal relations in accordance with this method
 than the conventional least square (LS) estimation. The symmetry of these
 quantile causal effects (the 'averaging effect') helps to explain why
 conventional LS method usually obtains an insignificant result of
 causality.			 
Journal: Applied Economics 
Pages: 1184-1201 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.868590 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868590 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1184-1201




Template-Type: ReDIF-Article 1.0
Author-Name: James E. Payne 
Author-X-Name-First: James E. 
Author-X-Name-Last: Payne 
Author-Name: Stephanie Miller 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: Miller 
Author-Name: Junsoo Lee 
Author-X-Name-First: Junsoo 
Author-X-Name-Last: Lee 
Author-Name: Myeong Hyeon Cho 
Author-X-Name-First: Myeong Hyeon 
Author-X-Name-Last: Cho 
Title: Convergence of per capita sulphur dioxide emissions across US states 
Abstract:
				 This study examines the stochastic
 conditional convergence of sulphur dioxide (SO<sub>2</sub>) emissions
 using the Residual Augmented Least Squares--Lagrange Multiplier (RALS--LM)
 unit root test with structural breaks. This procedure allows the data to
 account for trend breaks and nonnormal errors that have been ignored or
 deemphasized in previous studies. The study finds that per capita sulphur
 dioxide emissions exhibits stochastic conditional convergence across US
 states.		  
Journal: Applied Economics 
Pages: 1202-1211 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.868588 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868588 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1202-1211




Template-Type: ReDIF-Article 1.0
Author-Name: Nadir Altinok 
Author-X-Name-First: Nadir 
Author-X-Name-Last: Altinok 
Author-Name: Claude Diebolt 
Author-X-Name-First: Claude 
Author-X-Name-Last: Diebolt 
Author-Name: Jean-Luc Demeulemeester 
Author-X-Name-First: Jean-Luc 
Author-X-Name-Last: Demeulemeester 
Title: A new international database on education quality: 1965--2010 
Abstract:
				 The aim of this article is to propose a
 new database allowing a comparative evaluation of the relative performance
 of schooling systems around the world. We measure this performance through
 pupils' achievement in standardized tests. We merge all existing regional
 and international student achievement tests by using a specific
 methodology. When compared with other existing databases, our approach
 innovates in several ways, especially by including regional student
 achievement tests and intertemporal comparable indicators. We provide a
 data set of indicators of quality of student achievement for 103
 countries/areas in primary education and 111 countries/areas in secondary
 education between 1965 and 2010.		   
Journal: Applied Economics 
Pages: 1212-1247 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.868592 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868592 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1212-1247




Template-Type: ReDIF-Article 1.0
Author-Name: A. G. Walke 
Author-X-Name-First: A. G. 
Author-X-Name-Last: Walke 
Author-Name: T. M. Fullerton 
Author-X-Name-First: T. M. 
Author-X-Name-Last: Fullerton 
Title: Freight transportation costs and the thickening of the US--Mexico border 
Abstract:
				 Border regulatory requirements and
 administrative practices changed subsequent to the September 11, 2001
 (9/11), terrorist attacks in the United States. Research in this study
 examines the manners in which transportation cost data for merchandise
 imports from Mexico behaved before and after 2001. Evidence is obtained
 that confirms results earlier tabulated for imports from Canada. Empirical
 results further indicate that, beyond freight cost changes, growth in the
 value of imports from Mexico was disrupted by events associated with the
 aftermath of 9/11.			    
Journal: Applied Economics 
Pages: 1248-1258 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.870659 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870659 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1248-1258




Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang 
Author-X-Name-First: Qiao 
Author-X-Name-Last: Wang 
Author-Name: Wenju Wang 
Author-X-Name-First: Wenju 
Author-X-Name-Last: Wang 
Title: An analysis of Chinese government expenditure using dynamic binary panel data 
Abstract:
				 In this article, we model the government
 expenditure on the welfare change of general public by means of static and
 dynamic binary response model for panel data. We analyse the effectiveness
 of the total magnitude and the structure of the Chinese government
 expenditure on the basis of its effects on the welfare of Chinese
 citizens. We construct both the static and dynamic models. And we also do
 a further analysis of the state dependence of the welfare change of
 Chinese citizens by means of the survival analysis. The estimation results
 imply that the total amount of the Chinese government expenditure is not
 oversized but its allocation is not efficient. And expenditures in some
 fields are not utilized efficiently.			   
Journal: Applied Economics 
Pages: 1259-1266 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.870655 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870655 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1259-1266




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian C. H. Lei 
Author-X-Name-First: Adrian C. H. 
Author-X-Name-Last: Lei 
Author-Name: Martin H. Y. Yick 
Author-X-Name-First: Martin H. Y. 
Author-X-Name-Last: Yick 
Author-Name: Keith S. K. Lam 
Author-X-Name-First: Keith S. K. 
Author-X-Name-Last: Lam 
Title: The effects of tax convexity on default and investment decisions 
Abstract:
				 The objective of this article is to
 examine how default and investment triggers change under different levels
 of tax asymmetry when firms face nonlinear tax schedules. Under a convex
 tax schedule, profits are taxed at a higher rate, while losses are taxed
 (or rebated) at a lower rate, thus reducing the risk shared by the
 government. This article presents a dynamic model based on the
 contingent-claims framework to explore the impacts of tax convexity on the
 triggers, and we find that the impacts vary significantly depending on
 several countervailing forces. Tax convexity has a nonmonotonic
 relationship with both the default and investment triggers, because of the
 government's risk-sharing role. The default trigger is higher when tax
 convexity increases, while the growth option exerts a counteracting effect
 that lowers this trigger, creating an ambiguity in the investment trigger
 when changing the level of tax asymmetry.		      
Journal: Applied Economics 
Pages: 1267-1278 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.870653 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870653 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1267-1278




Template-Type: ReDIF-Article 1.0
Author-Name: Khaled Guesmi 
Author-X-Name-First: Khaled 
Author-X-Name-Last: Guesmi 
Author-Name: Duc Khuong Nguyen 
Author-X-Name-First: Duc Khuong 
Author-X-Name-Last: Nguyen 
Title: Time-varying regional integration of stock markets in Southeast Europe 
Abstract:
				 We investigate the dynamics of regional
 financial integration and its determinants in the context of an ICAPM
 accounting for the deviations from PPP as well as temporal variations in
 both regional and local sources of risk. Using data from four major
 countries of the Southeast Europe, our results support the validity of the
 ICAPM and show that changes in the degree of regional integration are
 explained principally by trade openness and stock market development
 whatever the measure of currency risk. As market integration induces both
 benefits and risks, our findings should have significant implications for
 economic policies and market regulations.		    
Journal: Applied Economics 
Pages: 1279-1290 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.870656 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870656 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1279-1290




Template-Type: ReDIF-Article 1.0
Author-Name: Jesse M. Cunha 
Author-X-Name-First: Jesse M. 
Author-X-Name-Last: Cunha 
Author-Name: Ryan Sullivan 
Author-X-Name-First: Ryan 
Author-X-Name-Last: Sullivan 
Author-Name: Melih Can 
Author-X-Name-First: Melih 
Author-X-Name-Last: Can 
Author-Name: Huseyin Yalcinkaya 
Author-X-Name-First: Huseyin 
Author-X-Name-Last: Yalcinkaya 
Title: Expedited citizenship for sale: estimating the effect of Executive Order 13269 on noncitizen military enlistments 
Abstract:
				 This article estimates the effect of
 offering an expedited citizenship application process to noncitizens for
 joining the US military. Executive Order (EO) 13269, enacted in July of
 2002, allowed noncitizens to apply for US citizenship immediately upon
 joining the military, effectively reducing the waiting time that is
 required to apply for citizenship from 3 years to 1&nbsp;day. We identify
 the effect of the policy by using administrative personnel data on the
 universe of military enlistees between 1999 and 2010 along with a
 difference-in-differences (DD) strategy that uses accessions amongst
 citizens as the control group. Overall, we find no effect of the offer of
 expedited citizenship on total accessions amongst noncitizens. However,
 this overall null effect masks significant shifts of noncitizen
 enlistments out of combat intensive services and into 'safer' services.
 These results provide the first empirical evidence about this important,
 and relatively costless, recruiting policy.			     
Journal: Applied Economics 
Pages: 1291-1300 
Issue: 11 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.870658 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870658 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1291-1300




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Fuentes Castro 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Fuentes Castro 
Title: Evidences of maturity mismatching of loans in OECD housing markets between 1995 and 2008 
Abstract:
				 The article focuses on maturity
 mismatching of loans in OECD economies during the last housing boom (which
 ended with the subprime mortgage crisis in 2007). Our model gives rise to
 an indicator measuring how strong the incentives for speculation were. The
 indicator is also used to estimate the influence of transaction costs and
 demand-side subsidies on leverage. According to the model, the influence
 of subsidies is likely to be limited compared to transaction costs, which
 may play a significant role in containing incentives for maturity
 mismatching. Some distinctive patterns can be deduced from a country by
 country analysis.			  
Journal: Applied Economics 
Pages: 1301-1311 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.870652 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870652 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1301-1311




Template-Type: ReDIF-Article 1.0
Author-Name: Y. Zhu 
Author-X-Name-First: Y. 
Author-X-Name-Last: Zhu 
Author-Name: Z. Wu 
Author-X-Name-First: Z. 
Author-X-Name-Last: Wu 
Author-Name: L. Peng 
Author-X-Name-First: L. 
Author-X-Name-Last: Peng 
Author-Name: L. Sheng 
Author-X-Name-First: L. 
Author-X-Name-Last: Sheng 
Title: Where did all the remittances go? Understanding the impact of remittances on consumption patterns in rural China 
Abstract:
				 We focus on the impact of migrants'
 remittances on consumption patterns in China. Using a large homogenous
 sample of rural households surveyed in 2001 and 2004, we find that
 remittances are spent on nonhousing consumption expenditures at the
 margin, virtually dollar-for-dollar, when we instrument remittances and
 local employed earnings using proxies of social networks. Our findings are
 robust to intra-household division of labour and to fixed-effect for the
 county in which the respondents are registered. These results imply that
 rural households largely take remittances as permanent income and are
 consistent with the prevalence of circular and repeat migration in China.  
Journal: Applied Economics 
Pages: 1312-1322 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.872764 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872764 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1312-1322




Template-Type: ReDIF-Article 1.0
Author-Name: Pin-te Lin 
Author-X-Name-First: Pin-te 
Author-X-Name-Last: Lin 
Author-Name: Franz Fuerst 
Author-X-Name-First: Franz 
Author-X-Name-Last: Fuerst 
Title: The integration of direct real estate and stock markets in Asia 
Abstract:
				 Currently, there exists relatively little
 research investigating the long-term association between stock and direct
 real estate markets. Using appropriate transaction-based property indices,
 this study focuses on the relationship between stock and direct real
 estate markets in nine Asian countries from the period 1980 to 2012
 through both linear and nonlinear cointegration techniques. We find
 empirical evidence of linear cointegration of stock and property markets
 in Taiwan, fractional cointegration in Singapore and Hong Kong and no
 evidence of cointegration in China, Japan, Thailand, Malaysia, Indonesia
 and South Korea. It is concluded that segmentation of property markets
 from stock markets does not appear to be linked to the differences in the
 maturity of national financial markets and that the differing degrees of
 integration across Asia may instead be reflective of a range of factors
 impacting upon the underlying economic structures in each country.	    
Journal: Applied Economics 
Pages: 1323-1334 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.872763 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872763 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1323-1334




Template-Type: ReDIF-Article 1.0
Author-Name: Gordon Y. N. Tang 
Author-X-Name-First: Gordon Y. N. 
Author-X-Name-Last: Tang 
Author-Name: Haomin Zhang 
Author-X-Name-First: Haomin 
Author-X-Name-Last: Zhang 
Title: Stock return reversal and continuance anomaly: new evidence from Hong Kong 
Abstract:
				 Using weekly data, this article conducts a
 comprehensive analysis and presents new empirical evidences on the
 short-term stock return reversal and continuance anomaly in the Hong Kong
 stock market. We confirm that winner stocks behave differently from loser
 stocks in that the return reversal phenomenon is pervasive within past
 winner stocks only while past loser stocks tend to show weak return
 continuance. The arbitrage strategy can earn significantly positive
 contrarian profits, especially for small firms and illiquid stocks. The
 anomaly varies across different industries and is also sensitive to the
 market movement. Despite the existence of the anomaly, our results still
 in general suggest that the Hong Kong stock market is weak-form efficient
 because arbitrage trading costs would largely overwhelm the available
 profits in most cases. 		       
Journal: Applied Economics 
Pages: 1335-1349 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.872767 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872767 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1335-1349




Template-Type: ReDIF-Article 1.0
Author-Name: Simona Rasciute 
Author-X-Name-First: Simona 
Author-X-Name-Last: Rasciute 
Author-Name: Eric Pentecost 
Author-X-Name-First: Eric 
Author-X-Name-Last: Pentecost 
Author-Name: Ben Ferrett 
Author-X-Name-First: Ben 
Author-X-Name-Last: Ferrett 
Title: Firm heterogeneity in modelling foreign direct investment location decisions 
Abstract:
				 This article investigates the probability
 of the FDI location decisions of multinational enterprises using a mixed
 logit panel data model, which is the most flexible discrete choice model.
 We employ a three-level data set, which includes over 1100 FDI location
 decisions into 13 alternative Central and Eastern European Countries
 (CEECs) over an 11-year period. Our empirical results on the effect of
 host country, industry and firm characteristics on the probability of
 undertaking FDI in a particular location are significant and consistent
 with the predictions of our theoretical model. 		  
Journal: Applied Economics 
Pages: 1350-1360 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.872760 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872760 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1350-1360




Template-Type: ReDIF-Article 1.0
Author-Name: Johannes M. Bauer 
Author-X-Name-First: Johannes M. 
Author-X-Name-Last: Bauer 
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Aaron Morey 
Author-X-Name-First: Aaron 
Author-X-Name-Last: Morey 
Title: Effects of economic conditions and policy interventions on OECD broadband adoption 
Abstract:
				 The positive effects of broadband networks
 and services on productivity and economic growth are well established.
 Looking at broadband as an engine of economic prosperity, the OECD and its
 member states are seeking to foster its widespread adoption. However,
 which public policies best promote the adoption of broadband remains
 controversial. This article contributes in two ways to this discussion. It
 offers a comprehensive discussion of the factors that influence broadband
 adoption and uses an econometric approach that is well-suited to overcome
 the challenges of modelling broadband adoption. This framework allows
 drawing more robust and nuanced policy recommendations.		    
Journal: Applied Economics 
Pages: 1361-1372 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.872765 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872765 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1361-1372




Template-Type: ReDIF-Article 1.0
Author-Name: J. Ignacio Garc𫑐鲥z 
Author-X-Name-First: J. Ignacio 
Author-X-Name-Last: Garc𫑐鲥z 
Author-Name: Marisa Hidalgo-Hidalgo 
Author-X-Name-First: Marisa 
Author-X-Name-Last: Hidalgo-Hidalgo 
Author-Name: J. Antonio Robles-Zurita 
Author-X-Name-First: J. Antonio 
Author-X-Name-Last: Robles-Zurita 
Title: Does grade retention affect students' achievement? Some evidence from Spain 
Abstract:
				 Grade retention practices are at the
 forefront of the educational debate. In this article, we measure the
 effect of grade retention on Spanish students' achievement by using data
 from Programme for International Student Assessment (PISA). We find that
 grade retention has a negative impact on educational outcomes, but we
 confirm the importance of endogenous selection which makes observed
 differences between repeaters and nonrepeaters appear about 14% lower than
 they actually are. The effect on scores of repeating is much smaller
 (--10% of nonrepeaters' average) than the counterfactual reduction that
 nonrepeaters would suffer had they been retained as repeaters (--24% of
 their average). Furthermore, those who repeated a grade during primary
 education suffered more than those who repeated a grade in secondary
 school, although the effect of repeating at both times is, as expected,
 larger.		       
Journal: Applied Economics 
Pages: 1373-1392 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.872761 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872761 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1373-1392




Template-Type: ReDIF-Article 1.0
Author-Name: Marjorie L. Baldwin 
Author-X-Name-First: Marjorie L. 
Author-X-Name-Last: Baldwin 
Author-Name: Chung Choe 
Author-X-Name-First: Chung 
Author-X-Name-Last: Choe 
Title: Re-examining the models used to estimate disability-related wage discrimination 
Abstract:
				 We examine how differences in model
 specifications and econometric methods affect unexplained wage
 differentials between workers with and without physical disabilities,
 where the unexplained differentials are estimates of the potential effects
 of disability-related wage discrimination. We apply an enhanced
 decomposition method (Neuman and Oaxaca, 2004) to selectivity-corrected
 wage equations to estimate potential discrimination effects. The
 decomposition separates observed wage differentials into a part explained
 by differences in characteristics that affect productivity and the
 decision to work and an unexplained part potentially attributed to
 discrimination. In addition to the functional limitation variables used to
 control for the effects of disability on productivity, we add measures of
 physical job demands, and interaction effects between functional
 limitations and job demands, to the wage models to examine how estimates
 of potential discrimination change. The interaction terms measure the
 extent to which workers' physical limitations affect important job
 functions. Data come from the 2004 SIPP merged to measures of job demands
 from the Occupational Information Network (O*Net). With job demands and
 interactions included in the model, approximately 10% of the observed wage
 differential for men, and 20% for women, is potentially attributed to
 discrimination. Changes in decomposition technique substantially alter the
 estimates of discrimination effects.			      
Journal: Applied Economics 
Pages: 1393-1408 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.872762 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1393-1408




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Barr貥 
Author-X-Name-First: Christian 
Author-X-Name-Last: Barr貥 
Author-Name: Quentin Bonnard 
Author-X-Name-First: Quentin 
Author-X-Name-Last: Bonnard 
Author-Name: V鲯nique Chossat 
Author-X-Name-First: V鲯nique 
Author-X-Name-Last: Chossat 
Title: Are we at a turning point in the evolution of gastronomy? Paris: an exemplary case 
Abstract:
				 Over the past few years, the landscape of
 top-class gastronomy has empirically changed: some celebrity chefs are
 returning their hard-won awards to instead provide low-cost food while
 others work tirelessly to gain access to the inner circle of international
 top-class restaurants. Things are changing, but the direction is unclear.
 To analyse the situation, we took the case of French Parisian gastronomy
 -- because it has been the main model for world gastronomy. Our study of
 it focuses on the Michelin Guide selection, covering the 60-year period
 1950--2012. We then applied multiple correspondence analysis to establish
 the profiles of the Parisian restaurants and to find out whether these
 profiles have evolved. This article shows that a turning point has clearly
 been reached and that gastronomic pluralism is on the rise -- to the
 detriment of the hegemony of elitist gastronomy.			 
Journal: Applied Economics 
Pages: 1409-1419 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.875110 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875110 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1409-1419




Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Han Liu 
Author-X-Name-First: Wei-Han 
Author-X-Name-Last: Liu 
Title: Optimal hedge ratio estimation and hedge effectiveness with multivariate skew distributions 
Abstract:
				 This article proposes to use the three
 multivariate skew distributions (generalized hyperbolic distribution,
 multivariate skew normal distribution, and multivariate skew
 Student<italic>-t</italic> distribution) for estimating the minimum
 variance hedge ratio in a dynamic setting. Three criteria for measuring
 hedge effectiveness are employed: hedging instrument effectiveness,
 overall hedge effectiveness, and relative-to-optimal hedge ratio
 effectiveness (RHRE). Three portfolios of spot and futures series are
 formed for empirical analysis. The outcomes confirm that the three
 multivariate skew distributions are more helpful in deciding the minimum
 variance hedge ratio, especially the generalized hyperbolic distribution,
 than the symmetrical normal and Student<italic>-t</italic> distributions.
 This outperformance is significant especially at critical market moments
 and it is indicated by three hedge effectiveness measures. This advantage
 is held without the cost of lowering portfolio return. In addition, there
 is speculation possibility existing in the portfolio hedged by the
 traditional optimal hedge ratio and this potential can be detected
 especially by RHRE.			     
Journal: Applied Economics 
Pages: 1420-1435 
Issue: 12 
Volume: 46 
Year: 2014 
Month: 4 
X-DOI: 10.1080/00036846.2013.875112 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875112 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1420-1435




Template-Type: ReDIF-Article 1.0
Author-Name: Zsolt Darvas 
Author-X-Name-First: Zsolt 
Author-X-Name-Last: Darvas 
Author-Name: Balẳ Varga 
Author-X-Name-First: Balẳ 
Author-X-Name-Last: Varga 
Title: Inflation persistence in central and eastern European countries 
Abstract:
				 This article studies inflation persistence
 with time-varying coefficient autoregressions for 12 central European
 countries in comparison with the United States and the euro area. We find
 that inflation persistence tends to be higher in times of high inflation.
 Since the oil price shocks, inflation persistence has declined both in the
 United States and the euro area. In most central and eastern European
 countries, for which our study covers 1993--2012, inflation persistence
 has also declined, with the main exceptions of the Czech Republic,
 Slovakia and Slovenia, where persistence seems to be rather stable. Our
 findings have implications for the conduct of monetary policy and for a
 possible membership in the euro area. Among the two time-varying
 coefficient methods we use, our results favour the flexible least squares
 smoother over the Kalman smoother. We also conclude that the OLS estimate
 of an autoregression is likely upward biased relative to the time-average
 of time-varying parameters, when the parameters change.		    
Journal: Applied Economics 
Pages: 1437-1448 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.875113 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875113 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1437-1448




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Jobert 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Jobert 
Author-Name: Fatih Karanfil 
Author-X-Name-First: Fatih 
Author-X-Name-Last: Karanfil 
Author-Name: Anna Tykhonenko 
Author-X-Name-First: Anna 
Author-X-Name-Last: Tykhonenko 
Title: Estimating country-specific environmental Kuznets curves from panel data: a Bayesian shrinkage approach 
Abstract:
				 Designing an efficient global climate
 policy turns out to be a difficult yet crucial task since there are
 noteworthy cross-country differences in energy and carbon intensities. In
 this article, the environmental Kuznets curve (EKC) hypothesis is tested
 for carbon dioxide (CO<sub>2</sub>) emissions, and as a modelling
 technique, the iterative Bayesian shrinkage procedure is employed to
 handle the cross-country differences. The results suggest that first the
 EKC hypothesis is rejected for 47 out of the 51 countries considered when
 the heterogeneity in countries' energy efficiencies and cross-country
 differences in the CO<sub>2</sub> emissions trajectories are accounted
 for; second, a classification of the results with respect to the
 development levels of the countries concerned reveals that the emergence
 of an overall inverted U-shaped curve is due to the fact that in
 high-income countries increase in gross domestic product (GDP) decreases
 emissions, while in low-income countries emissions and GDP are positively
 correlated.		       
Journal: Applied Economics 
Pages: 1449-1464 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.875111 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875111 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1449-1464




Template-Type: ReDIF-Article 1.0
Author-Name: Gonzalo Troncoso 
Author-X-Name-First: Gonzalo 
Author-X-Name-Last: Troncoso 
Author-Name: Juan Carlos Mu񯺠
Author-X-Name-First: Juan Carlos 
Author-X-Name-Last: Mu񯺠
Author-Name: Juan Carlos Ferrer 
Author-X-Name-First: Juan Carlos 
Author-X-Name-Last: Ferrer 
Author-Name: Louis de Grange 
Author-X-Name-First: Louis 
Author-X-Name-Last: de Grange 
Title: Assessing salesforce marginal productivity 
Abstract:
				 Marginal productivity of salesforce
 (excluding checkout clerks) in a retail store is difficult to assess. An
 analytical model is presented here explaining this productivity using
 salesforce workers per hour as the factor of production (the explanatory
 variable) and sales transactions per hour as the level of production (the
 explained variable). The model incorporates self-service transactions,
 controls for various seasonal effects (time of day, day of the week, month
 of the year) and generates solutions for in-store salesforce assignment
 across opening hours and sales points. To control for possible endogeneity
 between the transactions and salesforce size variables, instrumental
 variables are employed in the calibration process. The model is calibrated
 using data from a major retail chain based in Latin America both at the
 storewide level and for groups of individual store departments. The
 results corroborate the existence of diminishing returns to scale for the
 workers per hour factor and a significant level of self-service
 transactions in the total number of sales. The application of the model to
 the stores supplying the data confirms the systematic understaffing
 reported in the literature for the retail industry.			 
Journal: Applied Economics 
Pages: 1465-1475 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.877575 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877575 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1465-1475




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao 
Author-X-Name-First: Paulo Reis 
Author-X-Name-Last: Mourao 
Title: Does European regional competitiveness influence sports? An analysis of three sports 
Abstract:
				 The main objective of this work was to
 test European regional determinants of sports competitiveness. We studied
 competitiveness in volleyball, basketball and handball. We developed a
 theoretical model based on the model proposed by Bernard and Busse (2004)
 to analyse the effect of regional institutions and sport environments that
 can interfere with sports competitiveness. To test our model, we
 constructed an enlarged database for all European NUTS2 since 1995, which
 we analysed using panel data techniques (censored Tobit models). Our
 results reveal that the regions that are able to maintain player
 performance do so by persistent effort and external influences. These
 factors contribute more to regional competitiveness than a region's
 central location or political prominence.			 
Journal: Applied Economics 
Pages: 1476-1489 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.877578 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877578 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1476-1489




Template-Type: ReDIF-Article 1.0
Author-Name: Farhang Niroomand 
Author-X-Name-First: Farhang 
Author-X-Name-Last: Niroomand 
Author-Name: Massomeh Hajilee 
Author-X-Name-First: Massomeh 
Author-X-Name-Last: Hajilee 
Author-Name: Omar M. Al Nasser 
Author-X-Name-First: Omar M. 
Author-X-Name-Last: Al Nasser 
Title: Financial market development and trade openness: evidence from emerging economies 
Abstract:
				 International trade is said to be the
 engine of economic growth. Despite an enormous effort to explain this
 phenomenon, the relationship between financial market development and
 trade openness and integration into the world economy is still an enigma.
 This article investigates the relationship between financial market
 development and trade openness. To do this, we develop a long-run and
 short-run model (a bounds testing approach to cointegration) for 18
 emerging economies over the period 1980 to 2011. Estimates from all models
 show that financial market development, including both the stock market
 and the banking sector, has significant effect on trade openness in both
 short-run and long-run phenomena in the majority of countries. Despite
 many similarities among emerging economies, additional evidence suggests
 that the link between either stock market development or banking sector
 development with trade openness works via each country's specific
 structure.			 
Journal: Applied Economics 
Pages: 1490-1498 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.866207 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866207 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1490-1498




Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Horng Lin 
Author-X-Name-First: Jyh-Horng 
Author-X-Name-Last: Lin 
Author-Name: Jeng-Yan Tsai 
Author-X-Name-First: Jeng-Yan 
Author-X-Name-Last: Tsai 
Author-Name: Wei-Ming Hung 
Author-X-Name-First: Wei-Ming 
Author-X-Name-Last: Hung 
Title: Assessing bank equity risk under Legacy Loan Program 
Abstract:
				 We study the effects of purchasing
 distressed loan on bank equity risk under the Legacy Loan Program (LLP),
 in which the government is in partnership with private investors. The bank
 may refuse LLP when its knock-out value is too low. When the bank decides
 to participate in the LLP, the participation of a private investor
 generates a decrease in bank interest margin and an increase in equity
 risk, but the knock-out value with the LLP assistance generates an
 increase in bank interest margin and a decrease in equity risk. Our
 results suggest that the success of LLP depends critically on the
 willingness of a weak bank to participate in it. However, the
 participation of a private investor in LLP does not decrease the weak
 bank's equity risk but poses instability to the banking system.	    
Journal: Applied Economics 
Pages: 1499-1508 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.875109 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875109 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1499-1508




Template-Type: ReDIF-Article 1.0
Author-Name: Tamara de la Mata 
Author-X-Name-First: Tamara 
Author-X-Name-Last: de la Mata 
Title: Does trade creation by social and business networks hold in services? 
Abstract:
				 Recent literature on the border effect has
 shown that the intensity of trade in goods is positively correlated with
 the migration stocks between any pair of countries/regions. The number of
 references for business networks is more limited, but they are also
 related with a reduction on information costs. In this article we
 investigate whether such a relation holds also for Spanish domestic trade
 flows in consumer services. To this end, we use a gravity model rooted in
 the Dixit--Stiglitz--Krugman theoretical framework and a unique data set
 on interregional trade flows for some of the main tourism service sectors,
 namely, accommodations and restaurants. Our industry-specific analysis
 finds a large positive effect for restaurants but a more limited effect
 for accommodations. Forces driving the demand in each sector explain this
 result and suggest the idea that although social networks can act as a
 substitute of firms in some sectors at the same time they can enhance
 trade flows in other sectors. We perform the same kind of analysis with a
 data set (obtained by a similar method) for domestic trade in goods and
 discover a different response to social and business networks. Finally, we
 treat the potential endogeneity by taking the instrumental-variable
 approach of the Poisson pseudo-maximum likelihood estimator and thus
 obtain consistent results.			 
Journal: Applied Economics 
Pages: 1509-1525 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.877576 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877576 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1509-1525




Template-Type: ReDIF-Article 1.0
Author-Name: Minki Kim 
Author-X-Name-First: Minki 
Author-X-Name-Last: Kim 
Author-Name: Hailey Hayeon Joo 
Author-X-Name-First: Hailey Hayeon 
Author-X-Name-Last: Joo 
Title: What makes you grab low carb beers? 
Abstract:
				 What makes people choose low-carbohydrate,
 high-protein food (low-carb food), which is good for health but usually
 tastes bad? Using panel data on US beer consumption in which each
 consumption occasion is uniquely associated with various companion-based
 consumption contexts and exposure levels to diet information, we analyse
 the variations in consumers' preferences for low-carb food. The results
 show that there exist considerable gender differences in the preference
 variation under peer pressure. First, single females behave in a way they
 dislike drinking low-carb beer in front of friends, spouses and
 significant others. Second, male (both married and single) and married
 females pretend to choose low-carb beer when accompanied by spouses or
 significant others. Finally, the elasticity of demand for healthy food
 with respect to news articles about low-carb diets is positive, yet with
 substantial differences in the degree of elasticity across demographic
 groups.		   
Journal: Applied Economics 
Pages: 1526-1534 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.877572 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877572 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1526-1534




Template-Type: ReDIF-Article 1.0
Author-Name: Ray Bachan 
Author-X-Name-First: Ray 
Author-X-Name-Last: Bachan 
Author-Name: Barry Reilly 
Author-X-Name-First: Barry 
Author-X-Name-Last: Reilly 
Author-Name: Robert Witt 
Author-X-Name-First: Robert 
Author-X-Name-Last: Witt 
Title: Team performance and race: evidence from the English and French national soccer teams 
Abstract:
				 This study examines the performance of the
 men's senior national soccer teams of England and France between the years
 1996 and 2011. The article models team performance using an array of
 match-specific variables including the racial composition of the starting
 XI. We find no definitive evidence that the racial composition of the
 national teams exerts an influence on match outcome for either country
 over the period reviewed. In addition, while there is no statistical
 support for the view that the identity of the England national team
 manager is an important determinant of performance, there is mild evidence
 that the converse is the case for France.			   
Journal: Applied Economics 
Pages: 1535-1546 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.875108 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875108 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1535-1546




Template-Type: ReDIF-Article 1.0
Author-Name: Pilar G󭥺-Fernᮤez-Aguado 
Author-X-Name-First: Pilar 
Author-X-Name-Last: G󭥺-Fernᮤez-Aguado 
Author-Name: Antonio Partal-Ure񡠍
Author-X-Name-First: Antonio 
Author-X-Name-Last: Partal-Ure񡠍
Author-Name: Antonio Trujillo-Ponce 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Trujillo-Ponce 
Title: Moving toward risk-based deposit insurance premiums in the European Union: the case of Spain 
Abstract:
				 This article provides a scenario-based
 analysis of how the European Union proposal for a new funding model for
 deposit insurance systems (DISs) would affect the Spanish banking sector.
 We examine the risk profiles of commercial banks, savings banks and credit
 cooperatives over the period 2007 to 2011 and compare the contributions to
 the deposit insurance fund (DIF) under the current flat-rate regime with
 those that would have occurred under the new risk-sensitive system. We
 find that a risk-based scheme could provide an incentive for sound
 management by reducing the premiums for credit institutions with better
 risk profiles. We also conclude that the proposed reform may help to
 mitigate the moral hazard associated with larger credit institutions.	    
Journal: Applied Economics 
Pages: 1547-1564 
Issue: 13 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.877577 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877577 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1547-1564




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Patricio Samanez 
Author-X-Name-First: Carlos Patricio 
Author-X-Name-Last: Samanez 
Author-Name: L鯠da Rocha Ferreira 
Author-X-Name-First: L鯠
Author-X-Name-Last: da Rocha Ferreira 
Author-Name: Carolina Caldas do Nascimento 
Author-X-Name-First: Carolina Caldas 
Author-X-Name-Last: do Nascimento 
Author-Name: Let񊑡 de Almeida Costa 
Author-X-Name-First: Let񊑡 
Author-X-Name-Last: de Almeida Costa 
Author-Name: Claudio R. S. Bisso 
Author-X-Name-First: Claudio R. S. 
Author-X-Name-Last: Bisso 
Title: Evaluating the economy embedded in the Brazilian ethanol--gasoline flex-fuel car: a Real Options approach 
Abstract:
				 The introduction of the flex-fuel cars in
 the Brazilian market in 2003 changed considerably the consumer
 decision-making process. Prior to this date, it was necessary to choose
 the automobile type only by gasoline or by ethanol fuel; today it is
 possible to choose a car type with both fuel options. This flexibility
 generates economic advantages for his owner, but what are the financial
 benefits of a flex-fuel car in comparison with a car using only gasoline?
 Geographically, where is the owner of the benefits from this flexibility
 located? This article presents an empirical application of the Real
 Options Theory in the analysis of the flex-fuel car option for five
 geographic Brazilian regions: Northern, Northeastern, Central-Western,
 Southeastern and Southern. The regional price differences as well as the
 consumer preferences of these regions were met. For this purpose,
 historical fuel prices were considered stochastic and following a Mean
 Reverting Stochastic process. The prediction and option values were
 generated by a Monte Carlo simulation. The results indicated that the
 option embedded on the Brazilian flex-fuel car adds considerable value to
 the owner in all regions and car models considered, with the Southeastern
 Region receiving most benefits by the flex option.			  
Journal: Applied Economics 
Pages: 1565-1581 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.877573 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877573 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1565-1581




Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi 
Author-X-Name-First: Tatsuyoshi 
Author-X-Name-Last: Miyakoshi 
Author-Name: Kenichi Suzuki 
Author-X-Name-First: Kenichi 
Author-X-Name-Last: Suzuki 
Title: Who are the members of the international club? 
Abstract:
				 This article proposes pragmatic methods
 that incorporate recent contributions to public good theory to identify
 the members of the international club and how they select new members.
 This article also suggests simple applications to the recent problems in
 international clubs such as the euro and NATO. 		 
Journal: Applied Economics 
Pages: 1582-1585 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.877574 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877574 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1582-1585




Template-Type: ReDIF-Article 1.0
Author-Name: Yaobin Liu 
Author-X-Name-First: Yaobin 
Author-X-Name-Last: Liu 
Title: Resource drag in an endogenous growth context: a panel data-based estimation with cross-sectional dependences and structural breaks 
Abstract:
				 The article develops a resource drag model
 based on the endogenous growth theory, and provides fresh empirical
 evidence to estimate the drags for China by using the recently developed
 panel model with both cross-sectional dependences and structural breaks.
 The results indicate that there exists a long-run equilibrium relationship
 between GDP and its inputs, and both the land and water resources have
 significantly positive impacts on GDP except from some provinces after
 allowing for cross-sectional heterogeneities and structure breaks. In
 addition, the study employs the common correlated effects estimators to
 investigate the resource drags at both the pooled and individual levels.
 The result shows that the aggregate drag reduces annual growth rate by
 about 0.016 percentage points in China as a whole while there exist
 significant differences in both these disaggregate and aggregate drags for
 the province-groups, suggesting there is a fair amount of geographic
 clustering for them.			     
Journal: Applied Economics 
Pages: 1586-1598 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.879283 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.879283 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1586-1598




Template-Type: ReDIF-Article 1.0
Author-Name: Michal Brzezinski 
Author-X-Name-First: Michal 
Author-X-Name-Last: Brzezinski 
Title: Statistical inference for richness measures 
Abstract:
				 Richness indices are distributional
 statistics used to measure the incomes, earnings or wealth of the rich.
 This article uses a linearization method to derive the sampling variances
 for recently introduced distributionally sensitive richness measures when
 estimated from survey data. The results are derived for two cases: (1)
 when the richness line is known and (2) when it has to be estimated from
 the sample. The proposed approach enables easy consideration of the
 effects of a complex sampling design. Monte Carlo results suggest that the
 proposed approach allows for reliable inference in case of 'concave'
 richness indices, but that it is not satisfactory in case of 'convex'
 richness measures. The standard bootstrap methods give similar results for
 'concave' measures, but they are also unreliable for 'convex' indices. The
 performance of the bootstrap inference can be improved in some cases using
 a semi-parametric approach. The variance formulae are illustrated with a
 comparison of wealth richness in Canada, Sweden, the United Kingdom and
 the United States.		     
Journal: Applied Economics 
Pages: 1599-1608 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.880106 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.880106 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1599-1608




Template-Type: ReDIF-Article 1.0
Author-Name: Muriel Fadairo 
Author-X-Name-First: Muriel 
Author-X-Name-Last: Fadairo 
Author-Name: Cintya Lanchimba 
Author-X-Name-First: Cintya 
Author-X-Name-Last: Lanchimba 
Title: Organizational choices and performance in distribution systems 
Abstract:
				 This article studies the performance of
 distribution networks as the result of a range of organizational choices.
 The analytical part of the article surveys the vast literature devoted to
 franchising and dual distribution. From this framework, several testable
 propositions linking network performance to organizational choices are
 derived. Three complementary criteria of performance are taken into
 account: the internationalization rate, the expansion rate and the market
 share. This article provides evidence for the simultaneity between these
 performance criteria, analytically related as indicators of the network
 commercial performance. Thus, the econometrical model is defined as a
 system of simultaneous equations, free of endogeneity regarding the
 explanatory variables. The estimations on recent French data obtained
 using the three-stage least squares method provide robust results and show
 that the type of distribution network, the number of company-owned outlets
 in the network, the type of sector and the choice to manage several
 networks simultaneously affect the performance.		    
Journal: Applied Economics 
Pages: 1609-1623 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.872766 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872766 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1609-1623




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Lasarte Navamuel 
Author-X-Name-First: Elena 
Author-X-Name-Last: Lasarte Navamuel 
Author-Name: Fernando Rubiera Moroll󮠍
Author-X-Name-First: Fernando 
Author-X-Name-Last: Rubiera Moroll󮠍
Author-Name: Dusan Paredes 
Author-X-Name-First: Dusan 
Author-X-Name-Last: Paredes 
Title: City size and household food consumption: demand elasticities in Spain 
Abstract:
				 Are food price elasticities different
 across city sizes? The aim of this article is to estimate expenditure and
 own-price elasticities for 10 aggregated food product groups using the
 Spanish Household Budget Survey for the year 2010. These products are the
 ones for which the survey provides information regarding prices and
 quantities, thus allowing the application of an Almost Ideal Demand System
 (AIDS) model with censored data. The estimation procedure allows not only 
 comparisons to be made among households with different levels of income,
 but also the contribution of residence characteristics to variations in
 demand. The results confirm that the size of the city in which the
 household resides has a similar significant and relevant effect on
 consumption patterns as family income level. This is especially clear with
 own-price elasticities. In Spain, large central cities show a greater
 response to price changes than smaller cities or rural peripheral areas.   
Journal: Applied Economics 
Pages: 1624-1641 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.868593 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868593 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1624-1641




Template-Type: ReDIF-Article 1.0
Author-Name: Nina Ponikvar 
Author-X-Name-First: Nina 
Author-X-Name-Last: Ponikvar 
Author-Name: Katja Zajc Kej&#x17e;ar 
Author-X-Name-First: Katja 
Author-X-Name-Last: Zajc Kej&#x17e;ar 
Title: The puzzle on the causality of the productivity and employment growth: evidence from firm-level data 
Abstract:
				 This article analyses the causality
 between the firm's employment and productivity growth based on the
 population of manufacturing firms registered in Slovenia in the 1994--2003
 period. By using the system GMM estimator, we show that the
 employment--productivity growth trade-off does not exist. Moreover, we
 find significant complementarities between employment and productivity
 growth, mostly driven by SMEs and firms from high-tech industries.
 Accordingly, we argue that the job-creation policy and
 productivity-promoting policy are complementary rather than trade-offs and
 that policymakers should focus on the optimal policy mix that provides the
 highest aggregate effect with regard to all growth aspects. Further,
 significant differences among the factors of employment and productivity
 growth suggest that job-creation policy measures are most successful when
 targeted at younger export-oriented firms with high total factor
 productivity levels and capital-intensive production. Meanwhile, the
 outcome of policy measures aimed at promoting productivity increases with
 a firm's capital intensity and size up to the threshold employment level
 and with the intensity of market competition.			    
Journal: Applied Economics 
Pages: 1642-1651 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.881974 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881974 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1642-1651




Template-Type: ReDIF-Article 1.0
Author-Name: Yasunori Yoshizaki 
Author-X-Name-First: Yasunori 
Author-X-Name-Last: Yoshizaki 
Author-Name: Shigeyuki Haomori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Haomori 
Title: The effects of oil price shocks on expenditure category CPI 
Abstract:
				 In this study, we apply a two-block
 structural vector autoregressive (VAR) model proposed by Kilian and Park
 (2009) in order to investigate the dynamic effects of changes in oil price
 on the expenditure category consumer price index (CPI) in the United
 States and Japan. Our results confirm that each expenditure category price
 index responded very differently to the same structural shock, and that
 whether changes in oil price function as a positive stimulus or a negative
 shock for the individual expenditure category prices also depends on the
 kind of underlying shock that drives the changes in oil price. Finally,
 our results also reveal that the manner in which changes in oil price
 affect each expenditure category price differs between the United States
 and Japan and these detailed-level differences may lead to aggregate-level
 differences in the price response of both countries to changes in oil
 price. 		     
Journal: Applied Economics 
Pages: 1652-1664 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.881977 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881977 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1652-1664




Template-Type: ReDIF-Article 1.0
Author-Name: Alan T. Wang 
Author-X-Name-First: Alan T. 
Author-X-Name-Last: Wang 
Author-Name: Chengxue Yao 
Author-X-Name-First: Chengxue 
Author-X-Name-Last: Yao 
Title: Risks of Latin America sovereign debts before and after the financial crisis 
Abstract:
				 We investigate the financial determinants
 of the return and volatility of sovereign CDS spread from six major Latin
 American countries before and after the bankruptcy of Lehman Brothers.
 Other than CBOE <italic>VIX</italic> index, we also find that global
 factors including US Baa--Aaa default yield, <italic>TED</italic> spread
 and US Treasury rate all contribute to the changes in these sovereign CDS
 spread. Although global risk aversion (<italic>VIX</italic>) is a
 significant determinant of sovereign debt spread, in the years after the
 crisis, the emphasis has shifted towards short-term refinancing risk
 (<italic>TED</italic>). Furthermore, the risk of Greek sovereign debt
 crisis also transmitted Latin American CDS spreads immediately, but only
 in the post-Lehman sub-period. These findings provide implications for
 international bonds and credit derivatives trading strategies. 	    
Journal: Applied Economics 
Pages: 1665-1676 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.881976 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881976 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1665-1676




Template-Type: ReDIF-Article 1.0
Author-Name: Tsunao Okumura 
Author-X-Name-First: Tsunao 
Author-X-Name-Last: Okumura 
Author-Name: Emiko Usui 
Author-X-Name-First: Emiko 
Author-X-Name-Last: Usui 
Title: The effect of pension reform on pension-benefit expectations and savings decisions in Japan 
Abstract:
				 Using the Japanese Study of Aging and
 Retirement (JSTAR), which is a new Japanese panel survey of people aged 50
 and over, we find that more Japanese in their early 50s expect their level
 of public pension benefits to decline compared with those in their late
 50s and early 60s. We also find that recent pension reforms that raised
 the pensionable age affected the Japanese population by increasing the age
 at which they expect to claim their benefits by almost the exact same
 amount as the increase in the pensionable age. The reforms have also
 decreased the population's expectations about receiving public pension
 benefits, although this effect is not necessarily significant. We also
 find evidence that anxiety about the public pension programme's future
 increases private savings.			  
Journal: Applied Economics 
Pages: 1677-1691 
Issue: 14 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2013.870654 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870654 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1677-1691




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Josef Lamla 
Author-X-Name-First: Michael Josef 
Author-X-Name-Last: Lamla 
Author-Name: Martin Straub 
Author-X-Name-First: Martin 
Author-X-Name-Last: Straub 
Author-Name: Esther Mirjam Girsberger 
Author-X-Name-First: Esther Mirjam 
Author-X-Name-Last: Girsberger 
Title: On the economic impact of international sport events: microevidence from survey data at the EURO 2008 
Abstract:
				 Using firm-level data for more than 700
 Swiss hotels and restaurants, we evaluate the economic impact of the EURO
 2008 soccer championship in Switzerland. Although aggregated macrodata do
 not reveal any sizable economic impact, we report an overall negative
 effect based on the surveyed companies. Notably the reported effects of
 the individual firms are very heterogeneous. For instance, hotels in
 cities benefitted from the tournament as they were able to raise prices
 and thereby increase sales. Looking at the long-run impact only a small
 fraction of companies do believe in a positive effect. Interestingly, this
 outlook does not depend on realized sales, but on the guest structure.     
Journal: Applied Economics 
Pages: 1693-1703 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.881972 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881972 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1693-1703




Template-Type: ReDIF-Article 1.0
Author-Name: Jae-Joon Han 
Author-X-Name-First: Jae-Joon 
Author-X-Name-Last: Han 
Author-Name: Hongshik Lee 
Author-X-Name-First: Hongshik 
Author-X-Name-Last: Lee 
Author-Name: Joonhyung Lee 
Author-X-Name-First: Joonhyung 
Author-X-Name-Last: Lee 
Title: How and where to offshore: a productivity comparison at the firm level 
Abstract:
				 Using recent survey data on South Korean
 firms' strategies for sourcing intermediate goods from abroad, we
 investigate whether there exists a productivity premium of offshoring by
 considering organizational forms (insourcing versus outsourcing) and the
 income level of offshored countries (North versus South) altogether. Thus,
 we consider the following four offshoring types: outsourcing from South,
 insourcing from South, outsourcing from North and insourcing from North.
 Unlike previous studies, we give particular attention to the comparison
 between outsourcing from North and insourcing from South and find that
 firms outsourcing from North are more productive than firms sourcing from
 their own affiliates in South. We offer three critical conditions to
 incorporate our empirical findings into the standard firm heterogeneity
 model: the fixed cost is higher for insourcing than for outsourcing and is
 higher in North than in South, the headquarters receive a larger share of
 the final revenue through insourcing than through outsourcing, and
 sourcing from North guarantees better profitability (or a bigger share) in
 the market for the headquarters than sourcing from South. Thus, this
 article contributes to the literature by identifying a new productivity
 order. 		 
Journal: Applied Economics 
Pages: 1704-1715 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.881975 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881975 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1704-1715




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher S. Brunt 
Author-X-Name-First: Christopher S. 
Author-X-Name-Last: Brunt 
Author-Name: John R. Bowblis 
Author-X-Name-First: John R. 
Author-X-Name-Last: Bowblis 
Title: Health IT adoption, productivity and quality in primary care 
Abstract:
				 Within the last decade, there has been a
 growing push towards the use of electronic medical records and health
 information technology (IT) within primary care physician practices.
 Despite financial subsidies, smaller practices remain reluctant to adopt
 these information systems. Using a nationally representative survey of
 physicians, this study explores the relationship between physician,
 practice and area attributes and the adoption of health IT systems.
 Controlling for these attributes, the analysis subsequently studies the
 relationship between health IT, physician productivity and perceived
 quality of care. It finds that smaller practices and physicians with lower
 incomes are less likely to adopt health IT systems and that adoption
 varies with the type of medical conditions the practice typically treats.
 With regards to productivity, health IT adopters are more likely to see
 fewer patients and spend a larger amount of time on each visit with
 marginal increases in time on administrative tasks and no differences in
 perceived ability to deliver quality health care.			 
Journal: Applied Economics 
Pages: 1716-1727 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.884705 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884705 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1716-1727




Template-Type: ReDIF-Article 1.0
Author-Name: Anna P. I. Vong 
Author-X-Name-First: Anna P. I. 
Author-X-Name-Last: Vong 
Author-Name: Duarte Trigueiros 
Author-X-Name-First: Duarte 
Author-X-Name-Last: Trigueiros 
Title: Reversal in the relative performance of state- and legal person-owned companies during the Chinese split share structure reform 
Abstract:
				 The split share structure reform was
 started in 2005 with the object of re-designating state-related,
 nontradable shares into tradable shares. The article compares the two
 major forms of state ownership in China (direct or indirect ownership)
 showing that, close to the reform period, companies directly held by the
 state experience a significant increase in market performance relative to
 indirectly held companies. Results suggest that investors' perception
 about the worth of these two forms of state ownership may have suffered a
 reversal, thus bringing to light value-related consequences ensuing from
 protective schemes usual in China and elsewhere. The article also
 addresses a recurrent pitfall relating to the use in empirical models of
 fractions of the same total and shows that U-shaped patterns found in the
 relationship between ownership and performance are transient rather than
 stable.		    
Journal: Applied Economics 
Pages: 1728-1750 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.881973 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881973 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1728-1750




Template-Type: ReDIF-Article 1.0
Author-Name: Anh Tuan Bui 
Author-X-Name-First: Anh Tuan 
Author-X-Name-Last: Bui 
Author-Name: Mardi Dungey 
Author-X-Name-First: Mardi 
Author-X-Name-Last: Dungey 
Author-Name: Cuong Viet Nguyen 
Author-X-Name-First: Cuong Viet 
Author-X-Name-Last: Nguyen 
Author-Name: Thu Phuong Pham 
Author-X-Name-First: Thu Phuong 
Author-X-Name-Last: Pham 
Title: The impact of natural disasters on household income, expenditure, poverty and inequality: evidence from Vietnam 
Abstract:
				 Natural disasters are expected exacerbate
 poverty and inequality, but little evidence exists to support the impact
 at household level. This article examines the effect of natural disasters
 on household income, expenditure, poverty and inequality using the Vietnam
 Household Living Standard Survey in 2008. The effects of a natural
 disaster on household income and expenditure, corrected for fixed effects
 and potential endogeneity bias, are estimated at 6.9% and 7.1% declines in
 Vietnamese household per capita income and expenditure, respectively.
 Natural disasters demonstrably worsen expenditure poverty and inequality
 in Vietnam, and thus should be considered as a factor in designing poverty
 alleviation policies.			       
Journal: Applied Economics 
Pages: 1751-1766 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.884706 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884706 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1751-1766




Template-Type: ReDIF-Article 1.0
Author-Name: Haichao Fan 
Author-X-Name-First: Haichao 
Author-X-Name-Last: Fan 
Author-Name: Zhiwei Xu 
Author-X-Name-First: Zhiwei 
Author-X-Name-Last: Xu 
Title: Firm dynamics in news-driven business cycles: the role of endogenous survival rate 
Abstract:
				 Evidences from the structural vector-error
 correction model shows that the new business formation and stock prices
 co-moves with output under news shocks. However, simply incorporating firm
 dynamics into Jaimovich and Rebelo's (Jaimovich and Rebelo, 2009) model
 cannot explain these empirical findings. We show that this problem can be
 resolved by introducing endogenous survival rates for the new entrants.    
Journal: Applied Economics 
Pages: 1767-1777 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.884701 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884701 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1767-1777




Template-Type: ReDIF-Article 1.0
Author-Name: A. Anderson 
Author-X-Name-First: A. 
Author-X-Name-Last: Anderson 
Title: Maximum likelihood ranking in racing sports 
Abstract:
				 Most ranking methods used in racing sports
 are based on the number of points earned in a series of races. In some
 applications, this method will fail to provide an accurate ranking of
 competitors based on ability. In particular, rankings will not accurately
 reflect ability when competitors enter different numbers of races or when
 the level of competition varies by race. Additionally, point-based
 rankings are dependent on a subjective points scale. Three alternative
 models of performance and corresponding maximum likelihood estimation
 methods are presented that can be used to rank competitors and overcome
 the shortcomings of point-based rankings. Two methods are based on
 paired-comparisons among competitors and can be estimated using common
 binary-choice regression methods; the other is based on the rank-ordered
 logit model. These methods are valuable tools for stakeholders who need to
 evaluate the relative abilities of competitors to efficiently allocate
 resources. Application is demonstrated using results from the 2012 Formula
 One season, and the results of the maximum likelihood methods are compared
 to each other and the official point-based rankings.			  
Journal: Applied Economics 
Pages: 1778-1787 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.884702 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884702 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1778-1787




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Hussey 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Hussey 
Author-Name: Alex Nikolsko-Rzhevskyy 
Author-X-Name-First: Alex 
Author-X-Name-Last: Nikolsko-Rzhevskyy 
Author-Name: Jay Walker 
Author-X-Name-First: Jay 
Author-X-Name-Last: Walker 
Title: AIDing contraception: HIV and recent trends in abortion 
Abstract:
				 Using a difference-in-differences
 estimation framework and state-level data, we investigate the potential
 role of HIV/AIDS in contributing to declining abortion utilization in the
 United States. Our results suggest that the perceived risk of HIV
 contraction negatively affected unwanted pregnancies. Specifically, a 10%
 increase in HIV incidence is associated with 0.34--1.1% fewer abortions
 per live births, an effect that can account for at least one-tenth of the
 sharp decline in abortions observed from the early 1980s to mid-1990s.     
Journal: Applied Economics 
Pages: 1788-1803 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.884700 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884700 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1788-1803




Template-Type: ReDIF-Article 1.0
Author-Name: M. Hakan Berument 
Author-X-Name-First: M. Hakan 
Author-X-Name-Last: Berument 
Author-Name: Nildag Basak Ceylan 
Author-X-Name-First: Nildag Basak 
Author-X-Name-Last: Ceylan 
Author-Name: Burak Dogan 
Author-X-Name-First: Burak 
Author-X-Name-Last: Dogan 
Title: An interest-rate-spread-based measure of Turkish monetary policy 
Abstract:
				 A coherent method to measure the
 effectiveness of a monetary policy improves the monetary authority's
 management capacity and renders the possibility of applying sound policies
 prior to and during a crisis. The trend in employing complicated and
 ambiguity-bearing unconventional monetary tools in the aftermath of the
 2008 crisis has increased the value of such a method. The aim of this
 article is to introduce a coherent and consistent monetary policy
 evaluation method for Turkey. Accordingly, we suggest that innovations in
 the spread between overnight interest rates and Treasury auction interest
 rates are informative for exchange rate, output, and prices. Empirical
 evidence for this identification reveals that positive innovation in
 spread (implying a tight monetary policy measure) decreases output
 temporarily, permanently decreases prices, and appreciates local currency.
 This result is also robust to alternative specifications.		    
Journal: Applied Economics 
Pages: 1804-1813 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.884703 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884703 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1804-1813




Template-Type: ReDIF-Article 1.0
Author-Name: Jos頃. Fari񡳠
Author-X-Name-First: Jos頃. 
Author-X-Name-Last: Fari񡳠
Author-Name: Alberto L󰥺 
Author-X-Name-First: Alberto 
Author-X-Name-Last: L󰥺 
Author-Name: Ana Mart󻑍arcos 
Author-X-Name-First: Ana 
Author-X-Name-Last: Mart󻑍arcos 
Title: Assessing the impact of domestic outsourcing and offshoring on productivity at the firm level 
Abstract:
				 The purpose of this article is to
 investigate the effects of domestic and foreign sourcing on firm-level
 productivity. We develop a simple framework that permits the introduction
 of both domestic outsourcing and offshoring in a conventional production
 function. We find that the decision to outsource has a positive impact on
 the level of productivity as it permits the relocation of parts of the
 production process to external suppliers. Furthermore, there is a positive
 impact on output resulting from domestic outsourcing and offshoring like
 any other input.			
Journal: Applied Economics 
Pages: 1814-1828 
Issue: 15 
Volume: 46 
Year: 2014 
Month: 5 
X-DOI: 10.1080/00036846.2014.884704 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884704 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1814-1828




Template-Type: ReDIF-Article 1.0
Author-Name: Justin A. Lee 
Author-X-Name-First: Justin A. 
Author-X-Name-Last: Lee 
Author-Name: Steven B. Caudill 
Author-X-Name-First: Steven B. 
Author-X-Name-Last: Caudill 
Author-Name: Franklin G. Mixon 
Author-X-Name-First: Franklin G. 
Author-X-Name-Last: Mixon 
Title: Shine bright like a diamond: a hedonic model of grading and pricing an experience good 
Abstract:
				 Diamonds are generally evaluated on the
 basis of sensory characteristics, such as carat (weight), colour, clarity
 and cut. However, given the experience goods nature of diamonds, few
 consumers grasp how the sensory characteristics of these stones are
 evaluated by the gemological grading laboratories that independently issue
 diamond reports. This study extends prior research by determining whether
 diamonds graded by certain gemological laboratories are subject to pricing
 premiums or discounts in online retail markets. Regression models
 employing a sample of 169 483 real-time diamond offerings from online
 diamond retailers (e.g. Blue Nile, James Allen and Adiamor) find
 significant price discounts attributable to diamonds graded by the
 European Gemological Laboratory USA in relation to diamonds graded by the
 Gemological Institute of America (GIA) and significant price premiums
 attributable to diamonds graded by the American Gem Society in relation to
 diamonds graded by the GIA.		       
Journal: Applied Economics 
Pages: 1829-1838 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.884707 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884707 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1829-1838




Template-Type: ReDIF-Article 1.0
Author-Name: Carla Blazquez-Fernandez 
Author-X-Name-First: Carla 
Author-X-Name-Last: Blazquez-Fernandez 
Author-Name: David Cantarero 
Author-X-Name-First: David 
Author-X-Name-Last: Cantarero 
Author-Name: Patricio Perez 
Author-X-Name-First: Patricio 
Author-X-Name-Last: Perez 
Title: Disentangling the heterogeneous income elasticity and dynamics of health expenditure 
Abstract:
				 In this article, we empirically study the
 impact of per capita income on health-care expenditure and its dynamics
 over time in a sample of 14 OECD countries for the period 1971 to 2009. A
 simple model, built upon one developed by Newhouse (1977), suggests that
 health care is a necessity in the short run but it cannot be rejected to
 be a luxury good in the long run. Our findings provide strong empirical
 evidence that a year's health expenditure is conditioned by the previous
 one. Interestingly, our results reveal increasing income inelasticity over
 time along with huge heterogeneity across countries. Finally, this article
 supports the hypothesis of conditional convergence in health-care spending
 among countries. In designing policies which facilitate the sustainability
 of national health systems, we emphasize that ceteris paribus the greater
 the participation of public health, the lower the growth rate of health
 spending. High share of children and elderly over working age population
 opposite influences. We also provide evidence that technological progress
 could reduce the long-run income elasticity for health care, which in turn
 threaten the sustainability of health-care systems.		      
Journal: Applied Economics 
Pages: 1839-1854 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.887197 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887197 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1839-1854




Template-Type: ReDIF-Article 1.0
Author-Name: Weiwei Weng 
Author-X-Name-First: Weiwei 
Author-X-Name-Last: Weng 
Author-Name: Fanzheng Yang 
Author-X-Name-First: Fanzheng 
Author-X-Name-Last: Yang 
Title: The impact of social identity on trust in China: experimental evidence from cross-group comparisons 
Abstract:
				 Social identity tends to bias decision
 making in favour of in-group members with whom one shares a common social
 membership. This article investigates the trust behaviour of mainland
 Chinese when interacting with nonmainlanders in a two-party
 decision-making situation. Our experimental results reveal that, relative
 to their Hong Kong brethren who tend to be insensitive to their potential
 partner's background of origin, the decisions of mainland Chinese are
 significantly impacted by sharing a common background. This suggests
 mistrust may limit the effectiveness of China's policy of promoting
 international cooperation.			   
Journal: Applied Economics 
Pages: 1855-1860 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.887196 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887196 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1855-1860




Template-Type: ReDIF-Article 1.0
Author-Name: Marizah Minhat 
Author-X-Name-First: Marizah 
Author-X-Name-Last: Minhat 
Author-Name: Mazni Abdullah 
Author-X-Name-First: Mazni 
Author-X-Name-Last: Abdullah 
Title: Executive compensation in government-linked companies: evidence from Malaysia 
Abstract:
				 The aim of this study was to explore the
 characteristics of executive pay, equity ownership incentives and
 pay--performance relationship in government-controlled firms. Data were
 hand-collected from the annual reports of 179 companies listed on Bursa
 Malaysia. The results show that executive pay is lower in
 government-linked companies. Positive pay--performance relationship is
 also not evident for this category of firms, which indicates that their
 executives were largely guaranteed with certain level of pay irrespective
 of performance. The level of equity ownership incentives provides the
 executives in government-controlled firms with very little incentive to
 produce effort that can improve firm performance. Overall, our findings
 are consistent with the inefficient pay hypothesis developed in this
 study. 			
Journal: Applied Economics 
Pages: 1861-1872 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.887192 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887192 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1861-1872




Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar 
Author-X-Name-First: Saten 
Author-X-Name-Last: Kumar 
Title: Money demand income elasticity in advanced and developing countries: new evidence from meta-analysis 
Abstract:
				 This article extends the meta-analysis
 presented in Knell and Stix (2005, 2006) to investigate the possible
 sources of variations in empirical findings about the income elasticity of
 money demand in advanced and developing countries. In the case of advanced
 countries, we find that the income elasticities of money demand are
 significantly higher if broader definitions of the monetary aggregates are
 used. In addition, financial reforms and wealth seem to have significantly
 reduced the estimates of the income elasticity. However, we achieved quite
 different findings for the developing countries. It appears that the
 broader definitions of monetary aggregates seem to produce income
 elasticity estimates that are only marginally higher than the narrower
 aggregates. While the wealth (financial reform) impacts on income
 elasticity are statistically insignificant (weakly significant), both
 seems to have reduced the income elasticity estimates only marginally.
 Moreover, some contrasting results between advanced and developing
 countries are also attained with respect to the proxies of cost of holding
 money. 		       
Journal: Applied Economics 
Pages: 1873-1882 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.887195 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887195 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1873-1882




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Blanchard 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Blanchard 
Author-Name: Jean-Pierre Huiban 
Author-X-Name-First: Jean-Pierre 
Author-X-Name-Last: Huiban 
Author-Name: Claude Mathieu 
Author-X-Name-First: Claude 
Author-X-Name-Last: Mathieu 
Title: The shadow of death model revisited with an application to French firms 
Abstract:
				 This article provides an empirical model
 of the shadow of death in which the exit probability of a firm depends on
 the firm's productive performance and the firm's level of sunk costs,
 which are viewed as barriers to exit. The shadow of death effect is
 treated by assuming a relationship between the propensity to exit and both
 the contemporaneous and lagged values of efficiency and sunk costs. To
 estimate the unobserved productive efficiency, we use the Ackerberg
 <italic>et al</italic>. (2006) estimator extended by the addition of a
 correction for selection bias. We use an unbalanced sample of
 approximately 100 000 French firms over the period 1997 to 2002. Our
 results indicate that the probability of exit is negatively affected by
 unobserved individual efficiency and the level of sunk costs. The shadow
 of death effect applies mainly in manufacturing, where both productive
 efficiency and sunk costs decrease during several years before exit. In
 service sectors, the exit process seems to occur more suddenly.	    
Journal: Applied Economics 
Pages: 1883-1893 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2013.859376 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859376 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1883-1893




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Ignacio Gimenez-Nadal 
Author-X-Name-First: Jose Ignacio 
Author-X-Name-Last: Gimenez-Nadal 
Author-Name: Almudena Sevilla 
Author-X-Name-First: Almudena 
Author-X-Name-Last: Sevilla 
Title: Total work time in Spain: evidence from time diary data 
Abstract:
				 Using detailed time-use data from 2002--03
 and 2009--10 for Spain, we analyse changes in the time-allocation
 decisions of the Spanish population, with a focus on the time devoted to
 total work. Consistent with prior literature, we document that the concept
 of 'iso-work' (e.g. the time devoted to total work by gender is equal)
 does not hold in societies with stringent gender roles, such as Spain.
 Women devote more time to total work than men, and this difference has
 increased throughout the period studied by 2 hours per week. The relative
 increase in total work for women compared to men can be explained by a
 relative increase in market work of 8 hours per week, coupled with a
 relative decrease in nonmarket work of 6 hours per week, which have led
 Spanish women to devote, relatively, 2 fewer hours to leisure per week in
 2009--10, compared to 2002--03. We propose social norms as a potential
 explanation of these empirical findings. By uncovering how individuals
 allocate their time inside and outside the market over a period of time,
 our results may improve our understanding of the dynamics of economic
 change and welfare.		      
Journal: Applied Economics 
Pages: 1894-1909 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.887194 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887194 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1894-1909




Template-Type: ReDIF-Article 1.0
Author-Name: Aida Isabel Tavares 
Author-X-Name-First: Aida Isabel 
Author-X-Name-Last: Tavares 
Title: Health insurance and lifestyles 
Abstract:
				 This article contributes to the discussion
 surrounding the existence of <italic>ex</italic>			   
	   <italic>ante</italic> moral hazard and propitious selection in a
 voluntary private health insurance scenario. Moreover, it provides an
 estimation of the determinants of lifestyle choices and of private health
 insurance demand. A multivariate probit is estimated for health insurance
 demand and lifestyle decisions to take into account the potential
 endogeneity of these decisions. The results indicate that there is
 evidence of <italic>ex</italic>					
 <italic>ante</italic> moral hazard in deciding to do sports and eating
 healthy snacks. Hence, no propitious selection has been found for these
 decisions. Another relevant result shows that there is no individual
 heterogeneity for the lifestyle choices, except for smoking, and private
 health insurance choice. Evidence from the results also supports the idea
 that there are nonobservable variables playing a role in the lifestyle
 decisions. These results provide some directions for policymakers, such as
 the promotion of precautionary behaviours and the use of implicit
 lifestyle drivers to promote healthy choices by people.		    
Journal: Applied Economics 
Pages: 1910-1923 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.889803 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889803 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1910-1923




Template-Type: ReDIF-Article 1.0
Author-Name: I. M. Dobbs 
Author-X-Name-First: I. M. 
Author-X-Name-Last: Dobbs 
Author-Name: A. D. Miller 
Author-X-Name-First: A. D. 
Author-X-Name-Last: Miller 
Title: Inducing risk preferences in multi-stage multi-agent laboratory experiments 
Abstract:
				 Though there has been some debate over the
 practical efficacy of using binary lotteries for controlling risk
 preferences in experimental environments, the question of its theoretical
 validity within the contexts it is often used, namely multi-stage
 multi-agent settings, has not been addressed. Whilst the original proof of
 its validity featured a single-agent single-stage context, its practical
 use has seen a wide range of implementations. Practitioners have
 implicitly assumed that whenever the setting and form of implementation
 they have chosen deviates from the original single-agent single-period
 proof, it remains theoretically valid. There has been virtually no debate
 in the practitioner literature on the theoretical validity of binary
 lotteries in a more general context, or on whether the form of
 implementation matters. The current article addresses these questions,
 establishes limitations on validity and suggests some design principles
 for future implementation of binary lotteries for the purpose of
 controlling risk preferences.			      
Journal: Applied Economics 
Pages: 1924-1939 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.889801 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889801 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1924-1939




Template-Type: ReDIF-Article 1.0
Author-Name: C. Spulb&#x103;r 
Author-X-Name-First: C. 
Author-X-Name-Last: Spulb&#x103;r 
Author-Name: M. Ni&#x163;oi 
Author-X-Name-First: M. 
Author-X-Name-Last: Ni&#x163;oi 
Title: Determinants of bank cost efficiency in transition economies: evidence for Latin America, Central and Eastern Europe and South-East Asia 
Abstract:
				 In this study, we adopt Wang's (2002)
 heteroscedastic stochastic frontier model, which allows us to investigate
 bank cost efficiency and to measure the marginal effects of some variables
 on both the level and the variability of inefficiency. In recent years,
 the financial crisis has significantly affected the banking systems of the
 transition countries. Hence, the efficiency is of major importance for the
 stability of the banks. Regarding the determinants of efficiency, we find
 evidence that banks that follow a more cautious strategy, characterized by
 lower risk appetite and average expectations on profitability, have higher
 cost efficiency. We also find that traditional deposit-taking and
 loan-making still remain the most efficient activity of the banks.
 Additionally, the results showed that a higher Gross Domestic Product
 growth rate implies an increase in the inefficiency level, indicating an
 unsustainable bank management behaviour, which in periods of economic
 growth adopts policies that can generate inefficiency in order to gain
 market share and to obtain higher bonuses. Country cost efficiency results
 show significant differences. The banking systems in transition countries
 in South Eastern Asia appear to have a higher cost efficiency level. Also,
 the effects of the financial crisis were less significant in this region.  
Journal: Applied Economics 
Pages: 1940-1952 
Issue: 16 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.889806 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889806 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1940-1952




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Erik Bohlin 
Author-X-Name-First: Erik 
Author-X-Name-Last: Bohlin 
Author-Name: Paitoon Kraipornsak 
Author-X-Name-First: Paitoon 
Author-X-Name-Last: Kraipornsak 
Author-Name: Thien Tran 
Author-X-Name-First: Thien 
Author-X-Name-Last: Tran 
Title: The determinants of prices in the FCC's 700 MHz spectrum auction 
Abstract:
				 This article examines the prices paid for
 700 MHz licenses in recent Federal Communications Commission auctions.
 Econometric modelling confirms the presence of economies of scale and
 scope in wireless spectrum valuations. That is, higher prices are recorded
 for areas with large populations, whilst lower prices are realized for
 geographically large areas. Also, smaller geographic license areas appear
 to meet bidders' demand more effectively, and licenses in areas with high
 incomes are sold at higher prices. Not surprisingly, more strict
 deployment requirements and the presence of harmful technical interference
 reduce prices. Also, paired spectrum receives higher prices than unpaired
 spectrum. Interestingly, high minimum opening bids and upfront deposits
 are associated with higher prices. Finally, competitive bidding places
 upward pressure on prices.		       
Journal: Applied Economics 
Pages: 1953-1960 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.889807 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889807 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:1953-1960




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Alice Kones 
Author-X-Name-First: Alice 
Author-X-Name-Last: Kones 
Title: Real and nominal effective exchange rates of African countries during 1971Q1--2012Q4 
Abstract:
				 One of the macro variables that are
 included in most models is the exchange rate. Overall performance of a
 country's exchange rate is measured by changes in nominal or real
 effective exchange rate (REER). These rates are constructed and published
 mostly for industrial countries by international organizations. Less
 developed countries have received little attention. In this article, the
 two rates are constructed for 21 African countries using quarterly data
 over the period 1971Q1--2012Q4. As an application, we use the REERs to
 show that even in Africa the movements of the real effective rates follow
 a nonlinear path.			   
Journal: Applied Economics 
Pages: 1961-1984 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.889805 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:1961-1984




Template-Type: ReDIF-Article 1.0
Author-Name: Donald Lien 
Author-X-Name-First: Donald 
Author-X-Name-Last: Lien 
Author-Name: Sucharita Ghosh 
Author-X-Name-First: Sucharita 
Author-X-Name-Last: Ghosh 
Author-Name: Steven Yamarik 
Author-X-Name-First: Steven 
Author-X-Name-Last: Yamarik 
Title: Does the Confucius institute impact international travel to China? A panel data analysis 
Abstract:
				 This article examines the impact of
 Confucius Institutes on inbound travel to China. We estimate a panel
 gravity model of inbound tourism flows to China between 2004 and 2010. We
 use a Poisson pseudo-maximum likelihood estimator to control for
 heteroscedasticity endemic in gravity models (Santos Silva and Tenreyro,
 2006). We find that the presence of Confucius Institute(s) in the source
 country increases overall tourism in general and business and worker
 tourists in particular.		      
Journal: Applied Economics 
Pages: 1985-1995 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.889802 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889802 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:1985-1995




Template-Type: ReDIF-Article 1.0
Author-Name: Jacob A. Bikker 
Author-X-Name-First: Jacob A. 
Author-X-Name-Last: Bikker 
Author-Name: Thijs Knaap 
Author-X-Name-First: Thijs 
Author-X-Name-Last: Knaap 
Author-Name: Ward E. Romp 
Author-X-Name-First: Ward E. 
Author-X-Name-Last: Romp 
Title: Measuring and explaining implicit risk sharing in defined benefit pension funds 
Abstract:
				 This article investigates responses to
 changes in solvency by occupational pension funds using a unique panel
 data set containing the balance sheets of all registered pension funds in
 the Netherlands over a period of 13 years (1993--2005). A fixed discount
 rate for liabilities in the supervisory framework allows us to measure the
 response of pension funds to solvency shocks. We find that pension rights
 are expanded, by e.g. indexation, or limited, by for instance setting the
 pension premium over its actuarially fair price, in line with the funding
 ratio but that the pension funds' response function exhibits two sharp and
 significant behavioural breaks, close to the minimum funding ratio of 105%
 and the target ratio of around 125%. We further find that large funds and
 grey funds are relatively generous to current participants.		    
Journal: Applied Economics 
Pages: 1996-2009 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.889804 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:1996-2009




Template-Type: ReDIF-Article 1.0
Author-Name: Nobuhiro Hosoe 
Author-X-Name-First: Nobuhiro 
Author-X-Name-Last: Hosoe 
Title: Japanese manufacturing facing post-Fukushima power crisis: a dynamic computable general equilibrium analysis with foreign direct investment 
Abstract:
				 The Great East Japan Earthquake and the
 subsequent tsunami that hit and severely damaged the Fukushima Daiichi
 Nuclear Power Station resulted indirectly in the shutdown of most of the
 nuclear power plants in Japan. To compensate for the lost nuclear power
 supply, more fossil fuels were used. People became concerned that this
 could be disadvantageous for domestic manufacturing industries and
 accelerated their offshoring to Asia, especially China, through foreign
 direct investment (FDI). We used a world trade computable general
 equilibrium (CGE) model with endogenous FDI from Japan to China to
 quantify the impact of the power crisis on the Japanese manufacturing
 sectors. We found that the power crisis as well as FDI would adversely
 affect several sectors that use power intensively, but would benefit the
 transportation equipment (TEQ), electric equipment (EEQ) and machinery
 sectors, despite the common expectation that these sectors would undergo a
 so-called 'hollowing-out.'			  
Journal: Applied Economics 
Pages: 2010-2020 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.892198 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892198 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2010-2020




Template-Type: ReDIF-Article 1.0
Author-Name: Karel Hrazdil 
Author-X-Name-First: Karel 
Author-X-Name-Last: Hrazdil 
Author-Name: Kim Trottier 
Author-X-Name-First: Kim 
Author-X-Name-Last: Trottier 
Author-Name: Ray Zhang 
Author-X-Name-First: Ray 
Author-X-Name-Last: Zhang 
Title: An intra- and inter-industry evaluation of three classification schemes common in capital market research 
Abstract:
				 We compare the Standard Industry
 Classification (SIC), the North American Industry Classification System
 (NAICS) and the Global Industry Classification Standard (GICS) schemes in
 their effectiveness to group stocks with similar operating
 characteristics. We are the first to analyse and compare individual
 functional category levels within and across each industry classification
 and test whether the three industry classifications show significant
 improvement in homogeneity with finer industry partitions across a wide
 range of research applications. Our results suggest that the GICS system
 offers advantages over the other two systems in grouping firms across all
 its levels of industry categories and across different application schemes
 common to capital market research. However, the SIC and NAICS offer
 additional advantages across their finest industry partitions. Our study
 has important implications for users of industry classifications in
 various financial and economic analyses, research settings and regulatory
 contexts.		       
Journal: Applied Economics 
Pages: 2021-2033 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.892200 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892200 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2021-2033




Template-Type: ReDIF-Article 1.0
Author-Name: Abhinav Sacheti 
Author-X-Name-First: Abhinav 
Author-X-Name-Last: Sacheti 
Author-Name: Ian Gregory-Smith 
Author-X-Name-First: Ian 
Author-X-Name-Last: Gregory-Smith 
Author-Name: David Paton 
Author-X-Name-First: David 
Author-X-Name-Last: Paton 
Title: Uncertainty of outcome or strengths of teams: an economic analysis of attendance demand for international cricket 
Abstract:
				 A significant body of theoretical
 literature has argued that popular interest in sporting contests between
 teams is heavily influenced by how difficult it is to predict the result
 <italic>ex-ante</italic>. Empirical research has, however, been unable to
 reach a consensus on the magnitude of uncertainty of outcome on demand. In
 this article, we seek to resolve this impasse by distinguishing between
 uncertainty of outcome in the short run and uncertainty of outcome in the
 long run. We also show that it is important to control for the independent
 effect of absolute team strength when testing the uncertainty of outcome
 hypothesis. Using data on over 380 Test cricket matches played in England,
 Australia and New Zealand since 1980, we find that short-run uncertainty
 of outcome has a significant impact on attendance demand and that absolute
 team strength has better explanatory power for attendance demand than does
 long-run uncertainty of outcome. Our results suggest some policy
 implications for the management and organization of international cricket. 
Journal: Applied Economics 
Pages: 2034-2046 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.892203 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2034-2046




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Lieh Huang 
Author-X-Name-First: Yu-Lieh 
Author-X-Name-Last: Huang 
Title: Testing Markov switching models 
Abstract:
				 In this article, we propose a new test for
 Markov switching models. Unlike the tests in the existing literature (e.g.
 Hansen, 1992; Garcia, 1998; Cho and White, 2007), we focus on testing the
 null of two regimes, instead of one single regime, in a switching
 framework. To implement our test, we propose a Markov switching model with
 absorbing states and examine whether the absorption probabilities are
 close to the boundary of the parameter space. We exploit recent advances
 by Andrews (2001) and conduct inference in the proposed model. 	    
Journal: Applied Economics 
Pages: 2047-2051 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.892201 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892201 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2047-2051




Template-Type: ReDIF-Article 1.0
Author-Name: Micha&#x142; Brzoza-Brzezina 
Author-X-Name-First: Micha&#x142; 
Author-X-Name-Last: Brzoza-Brzezina 
Author-Name: Jacek Kot&#x142;owski 
Author-X-Name-First: Jacek 
Author-X-Name-Last: Kot&#x142;owski 
Title: Measuring the natural yield curve 
Abstract:
				 We generalize the concept of the natural
 rate of interest (Laubach and Williams, 2003; Woodford, 2003) by defining
 and estimating the natural yield curve (NYC) -- the term structure of
 natural interest rates. Our motivation stems i.a. from the observation
 that at times when central banks attempt to directly affect long-term
 interest rates (e.g. via quantitative easing) the gap between the
 short-term real and natural rate is no more a good indicator of the
 monetary policy stance. We estimate the NYC on US data, document its main
 properties and show i.a. that in the period 2008 to 2011 the NYC allows to
 better capture the US monetary policy stance than the short-term natural
 rate.			       
Journal: Applied Economics 
Pages: 2052-2065 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2013.829204 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829204 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2052-2065




Template-Type: ReDIF-Article 1.0
Author-Name: Philipp Doerrenberg 
Author-X-Name-First: Philipp 
Author-X-Name-Last: Doerrenberg 
Author-Name: Andreas Peichl 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Peichl 
Title: The impact of redistributive policies on inequality in OECD countries 
Abstract:
				 Due to behavioural effects triggered by
 redistributional interventions, it is still an open question whether
 government policies are able to effectively reduce income inequality. We
 contribute to this research question by using different country-level data
 sources to study inequality trends in OECD countries since 1980. We first
 investigate the development of inequality over time before analysing the
 question of whether governments can effectively reduce inequality.
 Different identification strategies, using fixed effects and instrumental
 variables models, provide some evidence that governments are capable of
 reducing income inequality despite countervailing behavioural responses.
 The effect is stronger for social expenditure policies than for
 progressive taxation.			       
Journal: Applied Economics 
Pages: 2066-2086 
Issue: 17 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.892202 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892202 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2066-2086




Template-Type: ReDIF-Article 1.0
Author-Name: Georg V. Lehecka 
Author-X-Name-First: Georg V. 
Author-X-Name-Last: Lehecka 
Title: Have food and financial markets integrated? 
Abstract:
				 This article analyses comovements and
 discusses possibly greater market integration between aggregate food
 commodity and stock prices in the period 1990 to 2012. Return
 correlations, price return distributions, cointegration and
 Granger-causalities are tested in subsamples on monthly FAO Food Price
 Index and MSCI World Stock Market Index. Empirical results suggest that
 while there is only weak indication of greater comovements concurrent with
 structural changes such as changed agricultural policies, new demand due
 to growth in emerging markets and energy mandates and the financialization
 of food markets since the early 2000s, they did start to increase
 substantially in particular during the financial stress of the Lehman
 crisis and the Great Recession. While structural changes may have
 amplified price linkages across markets, results do not suggest that they
 are the key factors for greater price comovements. Instead, the effects of
 the late-2000s recession as a time of great economic weakness and
 uncertainty may have changed concurrently the behaviour of both food and
 financial market participants, such that different market prices exhibit
 large comovements.			   
Journal: Applied Economics 
Pages: 2087-2095 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.894634 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894634 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2087-2095




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dobbie 
Author-X-Name-First: Michael 
Author-X-Name-Last: Dobbie 
Author-Name: Craig MacMillan 
Author-X-Name-First: Craig 
Author-X-Name-Last: MacMillan 
Author-Name: Ian Watson 
Author-X-Name-First: Ian 
Author-X-Name-Last: Watson 
Title: The returns to general experience, job and occupational tenure: a study using Australian panel data 
Abstract:
				 This article uses Australian panel data
 for the years 2001--2009 to estimate returns to general experience, job
 and occupational tenure. We pay particular attention to issues of
 unobserved heterogeneity bias in our estimations. We find that both
 general experience and occupational tenure have statistically and
 numerically significant effects on wage outcomes, even after controlling
 for unobserved heterogeneity. Job tenure on the other hand only seems to
 matter in OLS regressions that do not control for heterogeneity biases.
 Once these biases are controlled for, only a modest effect from job tenure
 remains. The inclusion of occupational tenure in the estimating equation
 tends to negate even this modest job tenure effect. The only exception to
 this is for workers in large organizations. For these workers a small but
 statistically significant effect from job tenure remains, even once we
 have controlled for heterogeneity and included occupational tenure in the
 estimating equation. The results reported in this article have
 implications for the various theories of the labour market that predict
 upward-sloping wage-job-tenure profiles.		       
Journal: Applied Economics 
Pages: 2096-2107 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.894632 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894632 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2096-2107




Template-Type: ReDIF-Article 1.0
Author-Name: Qiujie Zheng 
Author-X-Name-First: Qiujie 
Author-X-Name-Last: Zheng 
Author-Name: H. Holly Wang 
Author-X-Name-First: H. Holly 
Author-X-Name-Last: Wang 
Author-Name: Qing Hua Shi 
Author-X-Name-First: Qing Hua 
Author-X-Name-Last: Shi 
Title: Estimating bivariate yield distributions and crop insurance premiums using nonparametric methods 
Abstract:
				 Modelling crop yield distribution is
 crucial in crop insurance premium setting. The correlation between
 different crop yields due to rotations or systemic risks requires
 estimation of joint yield distribution for multiple crops. In this
 article, we apply a nonparametric method to estimate bivariate yield
 distributions using farm-level yield data of wheat and corn in Shandong
 Province in China. Then, the simulated yields are used to evaluate the
 expected indemnity of one traditional and one hypothetical crop insurance
 programme. Our results reveal that the nonparametric bivariate method is
 very flexible in shaping the yield probability density functions to
 estimate local idiosyncrasies and correlation between two crops. It is
 also feasible to simulate the nonparametric yield distributions at a
 satisfying level of accuracy. The simulation results show that the
 hypothetical two-crop insurance contract can be more affordable to farmers
 than traditional individual crop insurance contracts.			    
Journal: Applied Economics 
Pages: 2108-2118 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.894630 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894630 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2108-2118




Template-Type: ReDIF-Article 1.0
Author-Name: Louisa Andriamasy 
Author-X-Name-First: Louisa 
Author-X-Name-Last: Andriamasy 
Author-Name: Carlos P. Barros 
Author-X-Name-First: Carlos P. 
Author-X-Name-Last: Barros 
Author-Name: Qibin Liang 
Author-X-Name-First: Qibin 
Author-X-Name-Last: Liang 
Title: Technical efficiency of French nuclear energy plants 
Abstract:
				 This article analyses the efficiency of
 French nuclear energy plants belonging to EDF-electricity of France from
 2004 to 2008 with a DEA-Data Envelopment Analysis model. The
 <inline-graphic xmlns:xlink="http://www.w3.org/1999/xlink" id="ILG0001"
 xlink:href="raec_a_892199_ilg0001.gif"/>-convexity model is used to
 investigate the technical efficiency of a representative sample of nuclear
 plants. The results indicated that some plants have undergone an
 improvement in technical efficiency while others have regressed in terms
 of technical efficiency. Policy implications related to the results are
 discussed.			  
Journal: Applied Economics 
Pages: 2119-2126 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.892199 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892199 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2119-2126




Template-Type: ReDIF-Article 1.0
Author-Name: Christophe Andr頍
Author-X-Name-First: Christophe 
Author-X-Name-Last: Andr頍
Author-Name: Luis A. Gil-Alana 
Author-X-Name-First: Luis A. 
Author-X-Name-Last: Gil-Alana 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Testing for persistence in housing price-to-income and price-to-rent ratios in 16 OECD countries 
Abstract:
				 Housing price-to-income and price-to-rent
 ratios are among the most widely monitored indicators of housing market
 conditions. While these ratios tend to fluctuate around a constant level
 or a mild trend over the long term, they also tend to deviate from these
 benchmarks for protracted periods. Traditional unit root tests often
 indicate the presence of a unit root. This article uses the framework of
 fractional integration to test the persistence of price-to-income and
 price-to-rent ratios in a sample of 16 OECD countries spanning four
 decades. The results indicate that the ratios are highly persistent. The
 possibility that persistence estimates may be affected by structural
 breaks in the series is also considered, but evidence of such breaks is
 found only in a very limited number of cases. Policy action may be
 required if high price-to-income and price-to-rent ratios have adverse
 social and economic consequences. Policies should be guided by a careful
 analysis of the factors behind high ratios.			    
Journal: Applied Economics 
Pages: 2127-2138 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.896988 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896988 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2127-2138




Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner 
Author-X-Name-First: Richhild 
Author-X-Name-Last: Moessner 
Title: Effects of explicit FOMC policy-rate guidance on equities and risk measures 
Abstract:
				 We quantify the impact of explicit Federal
 Open Market Committee (FOMC) policy-rate guidance used as an
 unconventional monetary-policy tool at the zero lower bound of the policy
 rate on US equity prices, as well as on the risk indicators of credit and
 CDS spreads, implied volatilities and US equity index risk reversals. We
 find that explicit FOMC policy-rate guidance announcements at the zero
 lower bound led to a significant increase in US equity prices, for an
 aggregate equity index as well as for US commercial bank and US
 nonfinancial equities. Moreover, we find that they led to a significant
 reduction in some credit spreads. They also led to a significant reduction
 in an implied volatility index for US government bonds, as well as in the
 absolute value of US equity risk reversals, implying a lower perceived
 risk attached to a large fall in the equity index.			   
Journal: Applied Economics 
Pages: 2139-2153 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.894668 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894668 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2139-2153




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Hanafiah Harvey 
Author-X-Name-First: Hanafiah 
Author-X-Name-Last: Harvey 
Title: US--Indonesia trade at commodity level and the role of the exchange rate 
Abstract:
				 Previous studies that assessed the impact
 of currency depreciation on inpayments and outpayments of Indonesia with
 her major trading partners did not find much significant results,
 especially in the trade with the United States. We wonder whether
 insignificant link between the real rupiah-dollar rate and Indonesia's
 inpayments and outpayments with the United States is due to aggregation
 bias. To answer this question, we disaggregate the trade flows between the
 two countries by commodity and consider the sensitivity of inpayments of
 108 US exporting industries and outpayments of 32 US importing industries
 from Indonesia. We find that most industries respond to exchange rate
 changes in the short run. In the long run, however, 32 inpayments schedule
 and 17 outpayments schedule are significantly affected. A 1% real
 depreciation of the dollar was found to improve US trade balance by 1.8%.  
Journal: Applied Economics 
Pages: 2154-2166 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.896985 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896985 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2154-2166




Template-Type: ReDIF-Article 1.0
Author-Name: Ahdi Noomen Ajmi 
Author-X-Name-First: Ahdi Noomen 
Author-X-Name-Last: Ajmi 
Author-Name: Ghassen El-montasser 
Author-X-Name-First: Ghassen 
Author-X-Name-Last: El-montasser 
Author-Name: Shawkat Hammoudeh 
Author-X-Name-First: Shawkat 
Author-X-Name-Last: Hammoudeh 
Author-Name: Duc Khuong Nguyen 
Author-X-Name-First: Duc Khuong 
Author-X-Name-Last: Nguyen 
Title: Oil prices and MENA stock markets: new evidence from nonlinear and asymmetric causalities during and after the crisis period 
Abstract:
				 This article investigates the potential of
 nonlinear causal relationships between world oil prices and stock markets
 in Middle East and North Africa (MENA) countries during a black swan
 period that is characterized by rarity and devastating impacts. Our study
 is carried out using the daily data for 11 MENA countries over the period
 from 2 July 2007 to 27 August 2012. By using the nonlinear and asymmetric
 causality test of Kyrtsou and Labys (2006), we mainly find that: (i) the
 oil prices and MENA stock markets interact in a nonlinear manner; (ii) the
 signs of changes in the causing variables are important for detecting the
 true causality links between the variables and (iii) the nonlinear
 causality is more pronounced in the case of the Brent than West Texas
 Intermediate oil prices.			  
Journal: Applied Economics 
Pages: 2167-2177 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.896987 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896987 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2167-2177




Template-Type: ReDIF-Article 1.0
Author-Name: E. MᲱuez 
Author-X-Name-First: E. 
Author-X-Name-Last: MᲱuez 
Author-Name: A.R. Mart󹑺-Ca񥴥 
Author-X-Name-First: A.R. 
Author-X-Name-Last: Mart󹑺-Ca񥴥 
Author-Name: I. P鲥z-Soba 
Author-X-Name-First: I. 
Author-X-Name-Last: P鲥z-Soba 
Title: From real estate to consumption: the role of credit markets in the USA 
Abstract:
				 The aim of this article is to test whether
 the credit market conditions affect the strength of transmission of real
 estate wealth effects on household consumption in the US economy. Although
 many different works have dealt with the analysis of the existence of a
 <italic>real estate</italic> wealth effect, most of them as a reaction to
 the dramatic increase of housing prices in several OECD countries, there
 are only few papers analysing whether the consumption response depends on
 the positive or negative sign of the wealth shock and, as far as we know,
 none of them takes the effects of credit market conditions on that
 asymmetric response into account. This article tries to fill the existing
 gap in the literature on this matter. From an econometric perspective, we
 estimate the asymmetries in the consumption response within the momentum
 threshold autoregressive model (M-TAR) proposed by Enders and Siklos
 (2001), but following Stevans (2004), it is applied to a multivariate
 framework. The main results show that the credit market conditions play a
 significant role in the transmission of changes in real estate wealth to
 consumption. In addition, we find that there exists an asymmetric
 behaviour in the US aggregate consumption spending responses to real
 estate wealth and credit market shocks, which is only significant when a
 negative shock takes place.			     
Journal: Applied Economics 
Pages: 2178-2189 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.896986 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896986 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2178-2189




Template-Type: ReDIF-Article 1.0
Author-Name: Wolfram Berger 
Author-X-Name-First: Wolfram 
Author-X-Name-Last: Berger 
Author-Name: Michael Pickhardt 
Author-X-Name-First: Michael 
Author-X-Name-Last: Pickhardt 
Author-Name: Athanassios Pitsoulis 
Author-X-Name-First: Athanassios 
Author-X-Name-Last: Pitsoulis 
Author-Name: Aloys Prinz 
Author-X-Name-First: Aloys 
Author-X-Name-Last: Prinz 
Author-Name: Jordi Sardࠍ
Author-X-Name-First: Jordi 
Author-X-Name-Last: Sardࠍ
Title: The hard shadow of the Greek economy: new estimates of the size of the underground economy and its fiscal impact 
Abstract:
				 This article presents new estimates of the
 Greek underground economy and explores the link between the underground
 economy and aggregate debt. We show that the Greek underground economy has
 been underestimated heavily and has been on a rising trend again since
 Greece adopted the Euro. We also present evidence that the size of the
 underground economy is positively related to the debt-to-GDP ratio,
 implying that fighting the underground economy is also conducive to
 financial and macroeconomic stability. Our results suggest that for our
 sample of 11 EMU member countries, the loss of the inflation tax as an
 economic policy instrument had drastic consequences. While the underground
 economy did not have a statistically significant impact on aggregate debt
 before the introduction of the Euro, it has pushed up the debt-to-GDP
 ratio in our sample since.			   
Journal: Applied Economics 
Pages: 2190-2204 
Issue: 18 
Volume: 46 
Year: 2014 
Month: 6 
X-DOI: 10.1080/00036846.2014.896984 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896984 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2190-2204




Template-Type: ReDIF-Article 1.0
Author-Name: M. Ali Choudhary 
Author-X-Name-First: M. Ali 
Author-X-Name-Last: Choudhary 
Author-Name: M. Nadim Hanif 
Author-X-Name-First: M. Nadim 
Author-X-Name-Last: Hanif 
Author-Name: Javed Iqbal 
Author-X-Name-First: Javed 
Author-X-Name-Last: Iqbal 
Title: On smoothing macroeconomic time series using the modified HP filter 
Abstract:
				 In business-cycle research, smoothing data
 is an essential first step to evaluate the extent to which model-generated
 moments stand up to their empirical counterparts. We put to test
 McDermott's (1997) modified version of Hodrick and Prescott's (1997)
 smoothing filter. On the one hand, our simulations suggest that relative
 to other filters, the modified HP-filter replicates better artificially
 generated series with known properties. On the other hand, using true data
 we find that autoregressive properties of smoothed series are not affected
 by the choice of smoothing HP filters, but the same does not hold when it
 comes to multivariate analysis. The later result is especially strong for
 annual data. We report results for a large set of countries.		    
Journal: Applied Economics 
Pages: 2205-2214 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.894631 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894631 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2205-2214




Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Ergen 
Author-X-Name-First: Ibrahim 
Author-X-Name-Last: Ergen 
Title: Tail dependence and diversification benefits in emerging market stocks: an extreme value theory approach 
Abstract:
				 This article examines tail dependence, the
 benefits of diversification and the relation between the two for emerging
 stock markets. We find most emerging equity markets are independent in
 limiting joint extremes. However, the dependence in finite levels of
 extremes is still much stronger than the dependence implied by
 multivariate normality. Therefore, simple correlation analysis can lead to
 gross underestimation of the chances of joint crashes in multiple markets.
 Assuming risk-averse investors guarding against extreme losses,
 diversification benefits are measured for each two-country optimal
 portfolio by the reduction in quantile risk measures such as value-at-risk
 and expected shortfall relative to an undiversified portfolio. It is shown
 that tail dependence measures developed from multivariate extreme value
 theory are negatively related to diversification benefits and more
 importantly can explain diversification benefits better than the
 correlation coefficient at the most extreme quantiles. 		    
Journal: Applied Economics 
Pages: 2215-2227 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899678 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899678 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2215-2227




Template-Type: ReDIF-Article 1.0
Author-Name: Stefanie Schubert 
Author-X-Name-First: Stefanie 
Author-X-Name-Last: Schubert 
Title: Reducing public health insurance expenditure: a numerical analysis for Germany 
Abstract:
				 In recent decades, Germany's statutory
 health insurance expenditure increased drastically. To combat moral
 hazard, moderate copayments for the purchase of prescription drugs were
 introduced and increased several times. These measures, however, have been
 insufficient to buck the steadily increasing tide of Germany's statutory
 health care expenditure, making further reforms indispensable. Among a
 multitude of potential reform proposals, such as a switch to a health
 premia regime, are two policy options that provide for incentives to limit
 health care demand: mandatory deductibles and further elevating
 copayments. By combining an applied general equilibrium (AGE) model with
 abundant empirical data on heterogeneous household types, this article
 investigates the economic effects of these two policy options, thereby
 looking at both the current earnings-related SHI system and a hypothetical
 health premia regime characterized by per capita premia. As a key outcome,
 we find that the decrease in expenditure associated with both reform
 options is too small to induce substantial overall effects, most notably,
 because both the level of deductibles and the copayment rate are rather
 moderate in international contexts.		      
Journal: Applied Economics 
Pages: 2228-2241 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.896982 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896982 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2228-2241




Template-Type: ReDIF-Article 1.0
Author-Name: Jenni P䤫könen 
Author-X-Name-First: Jenni 
Author-X-Name-Last: P䤫könen 
Author-Name: Timo T. Sepp䬤 
Author-X-Name-First: Timo T. 
Author-X-Name-Last: Sepp䬤 
Title: Using composite indicators to evaluate the efficiency of health care system 
Abstract:
				 This article produces a system-level
 composite indicator on population health in publicly provided primary
 health care. We first summarize information from various indicators of
 care by principal component analysis (PCA). We then regress the costs of
 care against these indicators to evaluate whether they are related. The
 existing health status indicator provides a point of comparison. Our
 results suggest that PCA can be used to extract information efficiently
 and thus to reduce the dimensionality of data. Furthermore, the use of the
 existing health status indicator to estimate cost-efficiency leads to
 invalid inference on overall efficiency, while the use of composite
 indicator significantly reduces the bias.		    
Journal: Applied Economics 
Pages: 2242-2250 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899675 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899675 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2242-2250




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Sheng 
Author-X-Name-First: Yu 
Author-X-Name-Last: Sheng 
Author-Name: Hsiao Chink Tang 
Author-X-Name-First: Hsiao Chink 
Author-X-Name-Last: Tang 
Author-Name: Xinpeng Xu 
Author-X-Name-First: Xinpeng 
Author-X-Name-Last: Xu 
Title: The impact of the ACFTA on ASEAN--PRC trade: estimates based on an extended gravity model for component trade 
Abstract:
				 This article uses an extended gravity
 model to examine the impact of the free trade agreement between the
 Association of Southeast Asian Nations (ASEAN) and the People's Republic
 of China (PRC) on their trade flows and patterns. New determinants are
 utilized to capture the growing importance of global production sharing
 and intraregional trade in parts and components in East Asia. We show that
 the free trade agreement leads to substantially higher and more pronounced
 bilateral trade flows between ASEAN and the PRC than what a conventional
 gravity model predicts and the increase is concentrated in ASEAN countries
 that have stronger industrial linkages with the PRC.			    
Journal: Applied Economics 
Pages: 2251-2263 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899676 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899676 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2251-2263




Template-Type: ReDIF-Article 1.0
Author-Name: John Ashworth 
Author-X-Name-First: John 
Author-X-Name-Last: Ashworth 
Author-Name: Benny Geys 
Author-X-Name-First: Benny 
Author-X-Name-Last: Geys 
Author-Name: Bruno Heyndels 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Heyndels 
Author-Name: Fanny Wille 
Author-X-Name-First: Fanny 
Author-X-Name-Last: Wille 
Title: Competition in the political arena and local government performance 
Abstract:
				 Competition reduces rent extraction in
 private-sector firms. In this article, we empirically assess whether it
 similarly disciplines politicians by evaluating local-level governments'
 performance in Flanders. The results indicate that
 <italic>electoral</italic> competition -- measured via the number of
 parties competing in elections -- significantly positively affects the
 productive efficiency of municipal policy. <italic>Intertemporal</italic>
 competition -- measured as the volatility of election outcomes over time
 -- has a similar, but weaker, positive effect. These beneficial effects
 are mitigated by the fact that competition may lead to more fragmented
 governments, which is shown to work against their productive efficiency.
 Overall, though, the beneficial effects outweigh the unfavourable ones in
 our sample.			     
Journal: Applied Economics 
Pages: 2264-2276 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899679 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2264-2276




Template-Type: ReDIF-Article 1.0
Author-Name: Kurt William Rotthoff 
Author-X-Name-First: Kurt William 
Author-X-Name-Last: Rotthoff 
Author-Name: Craig A. Depken 
Author-X-Name-First: Craig A. 
Author-X-Name-Last: Depken 
Author-Name: Peter A. Groothuis 
Author-X-Name-First: Peter A. 
Author-X-Name-Last: Groothuis 
Title: Influences on sponsorship deals in NASCAR: indirect evidence from time on camera 
Abstract:
				 When corporate sponsors want to maximize
 their exposure, they often focus sponsorship dollars on events, teams and
 athletes that will prove to be reliable, respectable and, most important,
 repetitive advertising outlets. Analysing the factors that increase a
 broadcaster's propensity to display a sponsor during television broadcasts
 is often hard to measure. Using a unique data set describing NASCAR
 broadcasts, we indirectly analyse what influences the value of a
 sponsorship contract through a proxy for driver sponsorship value: the
 value of time on camera (VTOC). We find that the VTOC is influenced by
 driver performance and their celebrity status, as measured by driver
 experience and inherited brand-name capital. Although the values of
 individual sponsorship contracts are generally not reported, the evidence
 herein suggests that driver performance and status likely influence the
 value of NASCAR sponsorship contracts. 		     
Journal: Applied Economics 
Pages: 2277-2289 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899672 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899672 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2277-2289




Template-Type: ReDIF-Article 1.0
Author-Name: Luciana De Andrade Costa 
Author-X-Name-First: Luciana 
Author-X-Name-Last: De Andrade Costa 
Title: The effect of physician board membership on uncompensated care provision 
Abstract:
				 Previous studies indicate that nonprofit
 and for-profit hospitals provide comparable levels of uncompensated care,
 when taking into account their sizes. This evidence suggests that
 for-profit hospitals extract some indirect benefit when providing
 uncompensated care. Our article investigates how physician board
 membership affects uncompensated care provision. With data for hospitals
 in California from 1997 to 2010, we estimate a fixed-effect model where
 uncompensated care is a function of physician board membership, other
 board attributes, as well as hospital characteristics. Our results
 indicate that physician board membership in for-profit hospitals relates
 positively with uncompensated care provision. Prior evidence, such as
 Goldstein and Ward (2004) and Molinari <italic>et al.</italic> (1995), has
 shown that involving physicians in strategic decisions improves hospitals'
 financial performance. Our results reinforce the notion that having
 physicians in leadership or strategic positions benefits for-profit
 hospitals. In these hospitals, physicians seem to understand the strategic
 component of providing uncompensated care, possibly due to their closer
 assessment of patients' needs. 		       
Journal: Applied Economics 
Pages: 2290-2300 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899671 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899671 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2290-2300




Template-Type: ReDIF-Article 1.0
Author-Name: Eric C. Y. Ng 
Author-X-Name-First: Eric C. Y. 
Author-X-Name-Last: Ng 
Author-Name: Malick Souare 
Author-X-Name-First: Malick 
Author-X-Name-Last: Souare 
Title: On investment and exchange-rate movements 
Abstract:
				 We investigate the ways in which permanent
 exchange-rate changes may affect investment by influencing domestic and
 foreign revenue, the cost of imported variable inputs and the investment
 price of imported capital goods. We find that the revenue and
 investment-price channels have a quantitatively greater effect on
 investment than the cost channel. The negative effect of the revenue
 channel, which affects the marginal profitability of capital, outweighs
 the positive effect of the investment-price channel, which affects the
 marginal cost of capital, implying that exchange-rate appreciation has a
 net negative influence on investment. The estimation results are robust to
 different approaches to extracting the permanent components of exchange
 rates. 		     
Journal: Applied Economics 
Pages: 2301-2315 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.902026 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902026 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2301-2315




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Sch䦥r 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Sch䦥r 
Author-Name: Urs von Arx 
Author-X-Name-First: Urs 
Author-X-Name-Last: von Arx 
Title: The influence of pension funds on corporate governance 
Abstract:
				 Although pension funds have gained
 importance in the last two decades, their role has not been described in
 detail by economic models. This article focuses on the scope of these
 institutional investors when they are not satisfied with a management team
 of a company in which the pension fund holds a block of shares. Stock
 holdings by pension funds are largely dispersed. Therefore, any
 intervention by pension funds in corporate governance requires the
 formation of a coalition of pension funds. The realization of a
 coordinated intervention, in turn, is subject to the problems related to
 the provision of public goods, such as free riding. We find that the stock
 dispersion and the combined share of pension funds, coordination costs and
 the attractiveness of the exit option are relevant factors for determining
 the probability of the success of interventions.			 
Journal: Applied Economics 
Pages: 2316-2329 
Issue: 19 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899670 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899670 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2316-2329




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel 
Author-X-Name-First: Rajeev K. 
Author-X-Name-Last: Goel 
Author-Name: Michael A. Nelson 
Author-X-Name-First: Michael A. 
Author-X-Name-Last: Nelson 
Title: Whistleblower laws and exposed corruption in the United States 
Abstract:
				 This research creates a unique
 internet-based measure of awareness about state-level whistleblower laws
 and provisions to examine their effects on observed corruption in the
 United States. Are whistleblower laws complementary or substitutes for
 other, more direct, corruption control measures? Placing the analysis
 within the corruption literature, the findings show that greater
 whistleblower awareness results in more observed corruption and this
 finding holds across specifications. Internet awareness about
 whistleblower laws seems relatively more effective at exposing corruption
 than the quantity and quality of state whistleblower laws themselves.	    
Journal: Applied Economics 
Pages: 2331-2341 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.894633 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894633 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2331-2341




Template-Type: ReDIF-Article 1.0
Author-Name: Michele Limosani 
Author-X-Name-First: Michele 
Author-X-Name-Last: Limosani 
Author-Name: Emanuele Millemaci 
Author-X-Name-First: Emanuele 
Author-X-Name-Last: Millemaci 
Title: Precautionary savings of agents with heterogeneous risk aversion 
Abstract:
				 This article focuses on the estimation of
 the importance of the precautionary motive in the wealth accumulation
 decision. We use the micro data set of the De Nederlandsche Bank (DNB)
 Household Survey (DHS) (CentERdata, Tilburg University), a Dutch household
 survey containing information on wealth, a subjective measure of income
 uncertainty and subjective qualitative measures of risk aversion. We find
 that only a small share of wealth is accumulated for the precautionary
 motive by the Dutch households. This share of wealth is constant across
 assets with different degrees of liquidity. The economic downturn of the
 period 2008 to 2010 seems to affect risk attitudes and precautionary
 saving. Our findings also suggest that the more risk-averse individuals
 are those who hold less savings.			
Journal: Applied Economics 
Pages: 2342-2361 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.896983 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896983 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2342-2361




Template-Type: ReDIF-Article 1.0
Author-Name: Roohollah Zare 
Author-X-Name-First: Roohollah 
Author-X-Name-Last: Zare 
Author-Name: M. Azali 
Author-X-Name-First: M. 
Author-X-Name-Last: Azali 
Author-Name: M. S. Habibullah 
Author-X-Name-First: M. S. 
Author-X-Name-Last: Habibullah 
Author-Name: W. N. W. Azman-Saini 
Author-X-Name-First: W. N. W. 
Author-X-Name-Last: Azman-Saini 
Title: Monetary policy effectiveness and stock market cycles in ASEAN-5 
Abstract:
				 This article examines the asymmetric
 effects of monetary policy on real output in bull and bear phases of stock
 market in five ASEAN economies (Malaysia, Singapore, Indonesia, the
 Philippines and Thailand) using the recently developed pooled mean group
 (PMG) technique. Stock market cycles are identified by employing Markov
 switching models and the rule-based nonparametric approach. Estimating the
 models using monthly data from 1991:1 to 2011:12, the results show that
 monetary policy (measured by short-term interest rate) has a negative and
 statistically significant long-run effect on real output in bull and bear
 market periods while the effects are stronger in bear periods than bulls.
 In the short run, there is no statistically significant relationship
 between monetary policy and real output. These results are consistent with
 finance constraints (capital market imperfection) models that predict that
 monetary policy is more effective during bear periods than bulls.	    
Journal: Applied Economics 
Pages: 2362-2374 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899673 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899673 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2362-2374




Template-Type: ReDIF-Article 1.0
Author-Name: Mark J. Browne 
Author-X-Name-First: Mark J. 
Author-X-Name-Last: Browne 
Author-Name: Lan Ju 
Author-X-Name-First: Lan 
Author-X-Name-Last: Ju 
Author-Name: Zhiyong Tu 
Author-X-Name-First: Zhiyong 
Author-X-Name-Last: Tu 
Title: Broker monitoring of premium adequacy: the role of contingent commissions 
Abstract:
				 Contingent commissions, which are payments
 made by an insurer to brokers based on the volume and profitability of
 insurance placed with the insurer, have been criticized as damaging to the
 relationship between the insured and its broker. The argument is made that
 contingent commission payments encourage brokers to select insurers for
 their clients based on the potential to earn contingent commissions,
 rather than on the needs of the insured. We argue that contingent
 commission payments, which while directly paid by the insurer are
 ultimately paid by the insured through higher premiums, are beneficial to
 insureds because they provide an incentive for the broker to place their
 coverage with an insurer that is charging an adequate premium. We contend
 that although inadequate premiums are perhaps good for the insured in the
 short term, in the longer term, inadequate premiums will result in price
 hikes or coverage restrictions that are harmful to the insureds. Our
 empirical analysis demonstrates that insurers who pay contingent
 commissions experience less price fluctuation over the underwriting cycle
 than insurers who do not pay contingent commissions in the US property and
 casualty insurance industry.			     
Journal: Applied Economics 
Pages: 2375-2386 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.902020 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902020 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2375-2386




Template-Type: ReDIF-Article 1.0
Author-Name: Emmanouil Trachanas 
Author-X-Name-First: Emmanouil 
Author-X-Name-Last: Trachanas 
Author-Name: Constantinos Katrakilidis 
Author-X-Name-First: Constantinos 
Author-X-Name-Last: Katrakilidis 
Title: Is the Greek budget deficit sustainable after all? Empirical evidence accounting for regime shifts 
Abstract:
				 This article re-examines the
 sustainability of the Greek budget deficit by using a formal framework
 based on the government's intertemporal budget constraint. The empirical
 analysis uses annual data from 1960 to 2011 and employs traditional as
 well as more recent unit root and cointegration techniques that account
 for linear and nonlinear effects in fiscal policy actions. Unlike previous
 studies, the evidence suggests that, allowing for structural breaks, the
 Greek budget deficit is unsustainable. The parameter after the second
 detected break reflects the structural deficiencies of the Greek economy.  
Journal: Applied Economics 
Pages: 2387-2397 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.902021 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902021 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2387-2397




Template-Type: ReDIF-Article 1.0
Author-Name: C. P. Barros 
Author-X-Name-First: C. P. 
Author-X-Name-Last: Barros 
Author-Name: G. Rossi 
Author-X-Name-First: G. 
Author-X-Name-Last: Rossi 
Title: A Bayesian stochastic frontier of Italian football 
Abstract:
				 This study analyses the technical
 efficiency of Serie A Italian football clubs during the 2004--2012 seasons
 with a Bayesian stochastic frontier model using unique data extracted from
 clubs' annual reports. Specifically, the focus of the study is on
 assessing the impact effects on clubs' efficiency whether they are big
 clubs, they employ several foreign player, they compete in European
 competitions and their involvement with football scandals in the Italian
 football. The empirical results reveal that efficiency varies among the
 clubs analysed and policy implications are derived.			   
Journal: Applied Economics 
Pages: 2398-2407 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.902023 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902023 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2398-2407




Template-Type: ReDIF-Article 1.0
Author-Name: Jason Fletcher 
Author-X-Name-First: Jason 
Author-X-Name-Last: Fletcher 
Title: Friends or family? Revisiting the effects of high school popularity on adult earnings 
Abstract:
				 Recent evidence has suggested links
 between high school popularity and wages during mid-life using the
 Wisconsin Longitudinal Study. This article revisits this question by first
 replicating the results using an alternative dataset that is very similar
 in structure. Similar to previous results, the Add Health baseline effects
 suggest that an additional high school friendship nomination is linked to
 a 2% increase in earnings around age 30. However, leveraging the unique
 structure of the Add Health shows that sibling comparisons eliminate any
 associations between popularity and earnings. The findings suggest that
 families, rather than friends, may be the cause of the association.	    
Journal: Applied Economics 
Pages: 2408-2417 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.902024 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902024 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2408-2417




Template-Type: ReDIF-Article 1.0
Author-Name: Peng Nie 
Author-X-Name-First: Peng 
Author-X-Name-Last: Nie 
Author-Name: Alfonso Sousa-Poza 
Author-X-Name-First: Alfonso 
Author-X-Name-Last: Sousa-Poza 
Title: Maternal employment and childhood obesity in China: evidence from the China Health and Nutrition Survey 
Abstract:
				 Using five waves from the China Health and
 Nutrition Survey (CHNS), we investigate the association between maternal
 employment and obesity in children aged 3--17 in both rural and urban
 China. Using body mass index (BMI) and waist circumference (WC) as
 measures for paediatric adiposity, we provide scant evidence for its
 relation to maternal employment. We also find no strong association
 between maternal employment and our measures for children's diet and
 physical activity. Our study also suggests that grand-parenting could have
 beneficial effects on childhood obesity.		   
Journal: Applied Economics 
Pages: 2418-2428 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.902025 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902025 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2418-2428




Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi 
Author-X-Name-First: Tatsuyoshi 
Author-X-Name-Last: Miyakoshi 
Author-Name: Kui-Wai Li 
Author-X-Name-First: Kui-Wai 
Author-X-Name-Last: Li 
Author-Name: Junji Shimada 
Author-X-Name-First: Junji 
Author-X-Name-Last: Shimada 
Title: Rational expectation bubbles: evidence from Hong Kong's sub-indices 
Abstract:
				 This article uses Hong Kong stock market's
 four sub-indices to examine the existence and causes of rational
 expectation bubbles. The unit root test is applied to the rational bubble
 hypothesis. Various causality test methods are used to examine the
 causality of bubble among the four sub-indices. The empirical results show
 that in the sub-periods of 1986 to 2002 and 2000 to 2012, the bubbles of
 commerce and industry and utilities industries are consistent with
 rational expectation bubbles, but not so in the finance and properties
 industries. In general, the rational expectation bubbles in the two
 sub-periods seemed to have been caused by expectations in other growing
 foreign economies.		      
Journal: Applied Economics 
Pages: 2429-2440 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.904493 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904493 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2429-2440




Template-Type: ReDIF-Article 1.0
Author-Name: Arusha Cooray 
Author-X-Name-First: Arusha 
Author-X-Name-Last: Cooray 
Author-Name: Reetu Verma 
Author-X-Name-First: Reetu 
Author-X-Name-Last: Verma 
Author-Name: Lynne Wright 
Author-X-Name-First: Lynne 
Author-X-Name-Last: Wright 
Title: Does a gender disparity exist in academic rank? Evidence from an Australian university 
Abstract:
				 Employing a unique administrative data set
 on academics from the University of Wollongong (UOW), we investigate if
 women are under-represented in academic rank, taking into account
 information on personal characteristics, job characteristics, education
 and productivity. The results suggest that males have a significant
 advantage in rank attainment. The possession of a PhD, the number of years
 of experience and the number of journal articles, books, book chapters,
 competitive grants and ERA A* ranked articles appear to be important for
 academic rank attainment. A Blinder--Oaxaca decomposition test indicates
 that both supply side and demand side factors play a role; however, there
 is greater support for the endowments argument. Interviews were conducted
 in an attempt to explain the results. Interviews showed that men were more
 career-driven compared to women.		    
Journal: Applied Economics 
Pages: 2441-2451 
Issue: 20 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.904496 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904496 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2441-2451




Template-Type: ReDIF-Article 1.0
Author-Name: Maoyong Cheng 
Author-X-Name-First: Maoyong 
Author-X-Name-Last: Cheng 
Author-Name: Hong Zhao 
Author-X-Name-First: Hong 
Author-X-Name-Last: Zhao 
Author-Name: Junrui Zhang 
Author-X-Name-First: Junrui 
Author-X-Name-Last: Zhang 
Title: What precludes the development of noninterest activities in Chinese commercial banks from the perspective of the price of interest activities? 
Abstract:
 Noninterest activities of Chinese commercial banks remain sluggish. This
 article examines the price of interest activities and noninterest
 activities of Chinese commercial banks over 2000-2010 based on OLS and
 2SLS regression. We find that the price of interest activities has a
 significant negative effect on the noninterest activities. It appears that
 controlled interest rate is the main hindrance of the development of
 noninterest activities, and the result is consistent with 'political'
 view. We also find that among state-owned commercial banks and
 nonstate-owned ones, the relationships of interest activities and
 noninterest activities are differential. The link between the price of
 interest activities and noninterest activities in state-owned commercial
 banks is stronger than that in nonstate-owned commercial banks. That is
 the result of different government intervention degree.
Journal: Applied Economics 
Pages: 2453-2461 
Issue: 21 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.881971 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881971 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2453-2461




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Ma 
Author-X-Name-First: Jun 
Author-X-Name-Last: Ma 
Author-Name: Mark E. Wohar 
Author-X-Name-First: Mark E. 
Author-X-Name-Last: Wohar 
Title: Expected returns and expected dividend growth: time to rethink an established empirical literature 
Abstract:
 This article examines various state-space and VAR model specifications to
 investigate the contributions of expected returns and expected dividend
 growth to movements in the price-dividend ratio. We show that both models
 involve serious inference problems that need to be dealt with carefully.
 We propose procedures that offer more reliable inference results, and the
 corrected inferences indicate that the aggregate data of dividends and
 returns alone do not provide strong enough evidence to support the notion
 that the expected returns dominate the stock price variation. However, we
 show that an alternative measure of cash flows termed the net payout by
 Larrain and Yogo (2008) appears to lend strong support to the notion that
 the expected cash flow explains a large fraction of the firm value
 variation. This finding remains robust in both state-space and VAR
 decompositions with the corrected inference.
Journal: Applied Economics 
Pages: 2462-2476 
Issue: 21 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899674 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899674 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2462-2476




Template-Type: ReDIF-Article 1.0
Author-Name: Werner Bönte 
Author-X-Name-First: Werner 
Author-X-Name-Last: Bönte 
Author-Name: Stefan Krabel 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Krabel 
Title: You can't always get what you want: gender differences in job satisfaction of university graduates 
Abstract:
 Previous literature stressed on the gender differences in job satisfaction
 and the factors influencing the job satisfaction of men and women. Two
 rationales are usually provided for the finding that women tend to be
 relatively more satisfied with their jobs than men although disadvantaged
 in labour markets: first, women may have relatively <italic>lower</italic>
 expectations of career and income, and second, they may attach relatively
 less importance to extrinsic rewards than men. In order to analyse whether
 substantial gender differences exist already at the beginning of the
 career, we employ information of over 20 000 graduates collected through a
 large-scale survey of German university graduates who recently entered the
 labour market. We find that the job satisfaction of female graduates is on
 average slightly lower than the job satisfaction of male graduates, but
 our results do not point to substantial gender differences. In our sample
 of highly qualified individuals, men and women are very similar in what
 they want from their jobs and also in their perceptions of what they get.
 While our results point to substantial similarity of men and women in the
 early career stage, gender differences may emerge at later stages of the
 career life cycle.
Journal: Applied Economics 
Pages: 2477-2487 
Issue: 21 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.899677 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899677 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2477-2487




Template-Type: ReDIF-Article 1.0
Author-Name: Yang Zhang 
Author-X-Name-First: Yang 
Author-X-Name-Last: Zhang 
Author-Name: Mengling Li 
Author-X-Name-First: Mengling 
Author-X-Name-Last: Li 
Author-Name: Wai-Mun Chia 
Author-X-Name-First: Wai-Mun 
Author-X-Name-Last: Chia 
Title: Foreign interest rate shocks and exchange rate regimes in East Asia 
Abstract:
 Using a theoretical dynamic stochastic general equilibrium model and an
 empirical panel vector autoregression, we assess the transmission of
 foreign real interest rate shocks on the volatility of various key
 macroeconomic variables in nine small open economies in East Asia taking
 into account the role of exchange rate regimes. Both the theoretical and
 empirical findings confirm the hypothesis that flexible exchange rate may
 work as a shock absorber when the economy is hit by foreign real interest
 rate shocks. The findings suggest a clear trade-off between the volatility
 of real exchange rate and real output to foreign interest rate shocks,
 both the US and G7 real interest rates, where the responses of real output
 are mitigated in countries that have more flexible exchange rate regime.
Journal: Applied Economics 
Pages: 2488-2501 
Issue: 21 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.902022 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902022 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2488-2501




Template-Type: ReDIF-Article 1.0
Author-Name: Hongduo Cao 
Author-X-Name-First: Hongduo 
Author-X-Name-Last: Cao 
Author-Name: Ying Li 
Author-X-Name-First: Ying 
Author-X-Name-Last: Li 
Author-Name: Yong Tan 
Author-X-Name-First: Yong 
Author-X-Name-Last: Tan 
Title: The synchronization club: classification of global economic groups by inequality 
Abstract:
 We find that, from 1970 to 2006, the GDPs of 181 countries are described
 by a log-normal with a power law tail before 1992, but by a kinked power
 law distribution after 1992. In the 15 years from 1992 to 2006, there are
 two obvious scale-free zones for annual GDPs, ranked from the largest to
 smallest. If the countries in each scaling region are regarded as a group,
 the world is divided into two groups, each with a roughly stable number of
 members. The power exponents of the two groups are different and hence
 lead to different inequalities. Therefore, the basis for classification is
 the macro-consistent inequality within each group. The wealth grows in a
 synchronous nonlinear manner within groups that have a stable wealth
 distribution and rank structure. If each group is considered as a club, we
 name it a 'synchronization club'.
Journal: Applied Economics 
Pages: 2502-2510 
Issue: 21 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.904490 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904490 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2502-2510




Template-Type: ReDIF-Article 1.0
Author-Name: M. Argüelles 
Author-X-Name-First: M. 
Author-X-Name-Last: Argüelles 
Author-Name: C. Benavides 
Author-X-Name-First: C. 
Author-X-Name-Last: Benavides 
Author-Name: I. Fernᮤez 
Author-X-Name-First: I. 
Author-X-Name-Last: Fernᮤez 
Title: A new approach to the identification of regional clusters: hierarchical clustering on principal components 
Abstract:
 This study focuses on the identification of regional business clusters as
 a primary step in the design and implementation of cluster-based
 development strategies. A methodology that has not been used previously to
 identify clusters is applied to data on inter-industry linkages from the
 input-output table of a region in northern Spain. The first advantage of
 this approach, hierarchical clustering on principal components (HCPC),
 over the use of factorial analysis alone, is that it involves the
 application of objective clustering techniques to the principal components
 analysis results, which leads to a better cluster solution. A second
 advantage is derived from using a mixed algorithm for the clustering
 process - a combination of the Ward's classification method with the
 K-means algorithm - which improves the robustness of the final results.
Journal: Applied Economics 
Pages: 2511-2519 
Issue: 21 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.904491 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904491 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2511-2519




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantins Benkovskis 
Author-X-Name-First: Konstantins 
Author-X-Name-Last: Benkovskis 
Author-Name: Ludmila Fadejeva 
Author-X-Name-First: Ludmila 
Author-X-Name-Last: Fadejeva 
Title: The effect of VAT rate on inflation in Latvia: evidence from CPI microdata 
Abstract:
 This article evaluates the inflation effect of recent value added tax
 (VAT) rate changes in Latvia by using consumer price index (CPI)
 microdata. Our findings suggest that the pass-through of the tax rate to
 consumer prices is strong in case of upward tax adjustments, especially
 when there are no demand restrictions, while the pass-through is weaker
 for tax reductions. The frequency of price changes peaks at the moment of
 VAT adjustment, which, however, is partially compensated by lower average
 size of price revisions. The level of pass-through exhibits a high degree
 of heterogeneity with higher pass-through for goods, especially food, and
 lower for services.
Journal: Applied Economics 
Pages: 2520-2533 
Issue: 21 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.904492 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904492 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2520-2533




Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Jung Hsieh 
Author-X-Name-First: Chi-Jung 
Author-X-Name-Last: Hsieh 
Author-Name: Sheng-Hung Chen 
Author-X-Name-First: Sheng-Hung 
Author-X-Name-Last: Chen 
Author-Name: Jie-Min Lee 
Author-X-Name-First: Jie-Min 
Author-X-Name-Last: Lee 
Author-Name: Chun-Yuan Yeh 
Author-X-Name-First: Chun-Yuan 
Author-X-Name-Last: Yeh 
Title: Is there the threshold effect of cigarette price on smoking prevalence? A cross-country panel data analysis 
Abstract:
 This article shows new cross-country evidences by empirically
 investigating the joint effects of cigarette price levels and joining the
 World Health Organization Framework Convention on Tobacco Control (WHO
 FCTC) on smoking prevalence in 74 countries over the period of 2000, 2003,
 2005 and 2006. We assessed cigarette price elasticity for three national
 income levels using different databases on cigarette price from the
 Economist Intelligence Unit (EIU), demographic and socioeconomic country
 characteristics from the World Bank and adjusted smoking prevalence rates
 published by various yearly WHO reports on the global tobacco epidemic
 from 2000 to 2010. A panel threshold regression was used to capture the
 nonlinear effects that cigarette prices on smoking prevalence at the three
 national income levels endogenously determined by estimation. Our findings
 supported the evidence that joining the WHO FCTC would have a positive
 effect on reducing cross-country smoking prevalence, especially among
 countries with low- and medium-income levels. Moreover, some simulated
 results show that a price hike of 10% would reduce smoking prevalence in
 countries with national income levels equal to or less than US$1900 and by
 7.2% in countries with national income levels between US$1900 and US$2510
 more than those with national income levels that are higher than US$2510.
Journal: Applied Economics 
Pages: 2534-2544 
Issue: 21 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.904494 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904494 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2534-2544




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana 
Author-X-Name-First: Luis Alberiko 
Author-X-Name-Last: Gil-Alana 
Author-Name: Carlos Barros 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Barros 
Author-Name: Joao Ricardo Faria 
Author-X-Name-First: Joao Ricardo 
Author-X-Name-Last: Faria 
Title: Inflation in Mozambique: empirical facts based on persistence, seasonality and breaks 
Abstract:
 This article investigates inflation in Mozambique using long-range
 dependence (LRD) techniques in monthly data from December 1995 to October
 2012. Two important features of the data are analysed: persistence and
 seasonality, looking at aggregated and disaggregated data. The stability
 of the parameters across the sample is also investigated. The results
 indicate a high degree of persistence in the data along with a strong
 seasonal pattern. Policy implications are discussed.
Journal: Applied Economics 
Pages: 2545-2555 
Issue: 21 
Volume: 46 
Year: 2014 
Month: 7 
X-DOI: 10.1080/00036846.2014.907482 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907482 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2545-2555




Template-Type: ReDIF-Article 1.0
Author-Name: Ku-Hsieh Chen 
Author-X-Name-First: Ku-Hsieh 
Author-X-Name-Last: Chen 
Author-Name: Joe-Ming Lee 
Author-X-Name-First: Joe-Ming 
Author-X-Name-Last: Lee 
Author-Name: Cheng-Huan You 
Author-X-Name-First: Cheng-Huan 
Author-X-Name-Last: You 
Title: Who upholds the surging gold price? The role of the central bank worldwide 
Abstract:
 Who upholds the surging gold price? Conventional wisdom suggests that the
 depreciation of the exchange rate, inflation and economic turmoil are the
 suspects. Nonetheless, while these factors cease, why does the gold price
 still stay around hikes? The gold market belongs to a global arena.
 Different from other commodities, its participants include the national
 central banks worldwide. However, surprisingly, the role played by these
 tremendous market participants' gold holdings on the gold price has been
 ignored in past empirical works. This research focuses on central banks'
 gold holdings to explore who upholds the surging gold price. Several
 interesting outcomes are derived. First, our empirical evidence shows an
 inverse phenomenon relative to news reports from the mass media that the
 gold holdings of central banks worldwide in fact continuously descend.
 Second, the mainstream countries of the world have not played a main role
 in the rising trend of the gold price in the recent decade; instead, newly
 emerging industrialized countries' central banks' gold holdings show their
 significant power in explaining causality to gold price fluctuations.
 Third, the reason for the persistent gold buying behaviour of emerging
 economies may be because the increase in the gold price delivers a kind of
 short squeeze effect to the central banks of emerging countries.
Journal: Applied Economics 
Pages: 2557-2575 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.904495 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904495 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2557-2575




Template-Type: ReDIF-Article 1.0
Author-Name: William Sheng Liu 
Author-X-Name-First: William Sheng 
Author-X-Name-Last: Liu 
Author-Name: Frank Wogbe Agbola 
Author-X-Name-First: Frank Wogbe 
Author-X-Name-Last: Agbola 
Title: Regional analysis of the impact of inward foreign direct investment on economic growth in the Chinese electronic industry 
Abstract:
 This article empirically investigates the impact of inward foreign direct
 investment (FDI) on regional economic growth in the Chinese electronic
 industry (CEI). Utilizing a provincial-level panel data spanning the
 period 1989 to 2009, we specify and estimate an endogenous economic growth
 model for the CEI. Empirical results indicate that, for the coastal
 region, FDI inflows have been growth enhancing, while in the central and
 western regions the impact of FDI on economic growth is mixed, depending
 on the channel of capital flow. Results also indicate that exports, human
 capital, science and technology investment and fixed asset investment are
 growth enhancing, while unemployment and foreign R&D investment are growth
 impeding in the CEI.
Journal: Applied Economics 
Pages: 2576-2592 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.907478 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907478 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2576-2592




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph A. Schaltegger 
Author-X-Name-First: Christoph A. 
Author-X-Name-Last: Schaltegger 
Author-Name: Martin Weder 
Author-X-Name-First: Martin 
Author-X-Name-Last: Weder 
Title: Fiscal adjustment and the costs of public debt service: evidence from OECD countries 
Abstract:
 We use a panel of 21 OECD countries from 1970 to 2009 to investigate the
 effects of different fiscal adjustment strategies on long-term interest
 rates - a key fiscal indicator reflecting the costs of government debt
 service. As Europe's sovereign debt crisis has shown, governments
 confronted with high deficits and rising debt may be forced to enact
 fiscal adjustments in order to avoid increasing market pressure and
 solvency problems. Over the last four decades, such measures taken by
 governments in OECD countries have varied in duration, size, composition
 and in their success to re-establish fiscal sustainability. We find that
 large and expenditure-based adjustments lead to substantially lower
 long-term interest rates. Small and revenue-based measures do not have an
 effect on interest rates. Financial markets thus only seem to value strict
 and decisive measures - a clear sign that the government's pledge to cut
 the deficit is credible.
Journal: Applied Economics 
Pages: 2593-2610 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.907479 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907479 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2593-2610




Template-Type: ReDIF-Article 1.0
Author-Name: Chaker Aloui 
Author-X-Name-First: Chaker 
Author-X-Name-Last: Aloui 
Author-Name: Duc Khuong Nguyen 
Author-X-Name-First: Duc Khuong 
Author-X-Name-Last: Nguyen 
Title: On the detection of extreme movements and persistent behaviour in Mediterranean stock markets: a wavelet-based approach 
Abstract:
 We combine the global Hurst exponent and Morlet wavelet multi-resolution
 analysis (MRA) to investigate the dynamic behaviour of six selected stock
 markets in the Mediterranean region. Specifically, we employ the resonance
 coefficients and their power spectra to identify potential extreme
 movements and long-term dependence in stock returns. Using weekly data for
 the period 2005 to 2010, our results reveal that the wavelet MRA is able
 to reconstruct the effects of major extreme shocks on stock returns of
 studied markets, such as the Asian financial crisis, the 9/11 terrorist
 attacks and the 2007-2009 financial crisis. Moreover, the wavelet-based
 global Hurst exponent indicates the presence of long-term dependencies in
 stock returns of all the considered markets, except for France where the
 anti-persistent behaviour is detected. Overall, our findings are useful to
 assess the stock market efficiency and provide new insights into stock
 market dynamics over different time scales.
Journal: Applied Economics 
Pages: 2611-2622 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.907480 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907480 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2611-2622




Template-Type: ReDIF-Article 1.0
Author-Name: Salem Abo-Zaid 
Author-X-Name-First: Salem 
Author-X-Name-Last: Abo-Zaid 
Title: Net job creation in the US economy: lessons from monthly data, 1950-2011 
Abstract:
 This article studies the monthly net job creation (NJC) at the aggregate
 and the sectoral levels in the United States over the period 1950 to 2011.
 The article has few important findings. First, NJC did not show a
 significant trend over the last six decades, which led to a fall in the
 NJC rate. Second, NJC was very volatile and it could change course even in
 the span of 1 month. Third, there was no clear pattern about the
 co-movement between NJC and the change in the unemployment rate. Fourth,
 the averages of total NJC and private NJC since late 2010 were
 significantly higher than their respective historical averages and the
 volatility in NJC since the end of the Great Recession was not unusual by
 historical standards. Fifth, while the evidence about the effects of the
 2009 American Recovery and Reinvestment Act on employment is inconclusive,
 some sectors appeared to benefit from it. Finally, the most frequent drop
 in the unemployment rate was by 0.1%, and drops of more than 0.2% should
 not be highly expected.
Journal: Applied Economics 
Pages: 2623-2638 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.907481 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907481 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2623-2638




Template-Type: ReDIF-Article 1.0
Author-Name: W. Xu 
Author-X-Name-First: W. 
Author-X-Name-Last: Xu 
Author-Name: S.E. Lowe 
Author-X-Name-First: S.E. 
Author-X-Name-Last: Lowe 
Author-Name: S. Zhang 
Author-X-Name-First: S. 
Author-X-Name-Last: Zhang 
Title: An analysis of irrigated agricultural outcomes under the prior appropriation doctrine: hypotheses and applications 
Abstract:
 This article measures irrigated agricultural outcomes under the prior
 appropriation doctrine by developing a model of farmers' land allocations
 in response to water supply change. The modelling approach considers the
 institutional factors of water rights and permits the inclusive
 determination of water and land allocations. We utilize farm-level data of
 irrigated agriculture in Water District #1 in Idaho to examine the
 predictions from our theoretical model. The water rights priority date is
 consolidated at the farm level and used to differentiate farmers'
 responses. We test a set of hypotheses that relate to water supply and
 crop revenue. Our results suggest that the water rights priority has a
 profound impact on agricultural outcomes, indicating strong institutional
 effects and weak influence of market-based approaches. Farmers respond to
 both long-term and seasonal water supply change and variation, and they
 respond to seasonal water supply forecasts in varied ways depending on
 their water rights portfolios, thus signalling a disproportionate
 distribution of potential impacts of water supply change.
Journal: Applied Economics 
Pages: 2639-2652 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.907483 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907483 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2639-2652




Template-Type: ReDIF-Article 1.0
Author-Name: Doroth饠Boccanfuso 
Author-X-Name-First: Doroth饠
Author-X-Name-Last: Boccanfuso 
Author-Name: Marcelin Joanis 
Author-X-Name-First: Marcelin 
Author-X-Name-Last: Joanis 
Author-Name: Patrick Richard 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Richard 
Author-Name: Luc Savard 
Author-X-Name-First: Luc 
Author-X-Name-Last: Savard 
Title: A comparative analysis of funding schemes for public infrastructure spending in Quebec 
Abstract:
 The economic literature has been investigating the positive relation
 between public infrastructure spending and the productivity of the private
 sector since Munnell (1992). We have introduced this relationship into a
 recursive dynamic computable general equilibrium model of the Quebec
 economy to investigate various funding schemes to scale up infrastructure
 spending in the province. We draw our assumptions from Estache <italic>et
 al.</italic> (2010) combined with sectoral elasticity parameters. We
 conduct a comparative analysis where the funding comes from debt alone,
 and debt with sales tax, income tax and business tax. Our main finding is
 that the income tax seems to produce the most positive effects and the
 businesses tax the most negative effects, though differences are small.
Journal: Applied Economics 
Pages: 2653-2664 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.909576 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909576 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2653-2664




Template-Type: ReDIF-Article 1.0
Author-Name: Thanh Pham Thien Nguyen 
Author-X-Name-First: Thanh Pham Thien 
Author-X-Name-Last: Nguyen 
Author-Name: Eduardo Roca 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Roca 
Author-Name: Parmendra Sharma 
Author-X-Name-First: Parmendra 
Author-X-Name-Last: Sharma 
Title: How efficient is the banking system of Asia's next economic dragon? Evidence from rolling DEA windows 
Abstract:
 Vietnam is now widely regarded as a rising economic star and the next
 economic dragon of Asia. Its banking system has played a key role in this
 stellar economic performance. Since 1990, Vietnam's banking system has
 undergone significant changes which saw its composition transformed from
 being state banks only to now being both state as well as private banks,
 and has performed generally well in terms of growth, profitability and
 stability. But is it efficient? We conduct a dynamic analysis of the level
 and trend of the cost and profit efficiency of the Vietnamese banking
 sector over the period 1995 to 2011 taking into account the Asian and
 Global Financial crises. We use the Data Envelopment Analysis (DEA)
 Windows Analysis approach and adjust for bank size in calculating the
 average efficiency score of the banking system. Our empirical findings
 show that the cost and profit efficiency of the Vietnamese banking system
 averaged around 0.90 and 0.75, respectively, with the state banks being
 more efficient than the private banks and with efficiency experiencing an
 upward trend over the analysis period. Moreover, we find that the Global
 Financial Crisis (GFC) and Asian Financial Crisis (AFC) did not
 significantly affect the efficiency of the whole Vietnamese banking
 system.
Journal: Applied Economics 
Pages: 2665-2684 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.909578 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909578 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2665-2684




Template-Type: ReDIF-Article 1.0
Author-Name: Saeed Heravi 
Author-X-Name-First: Saeed 
Author-X-Name-Last: Heravi 
Author-Name: Peter Morgan 
Author-X-Name-First: Peter 
Author-X-Name-Last: Morgan 
Title: A comparison of six sampling schemes for price index construction in a COICOP food group 
Abstract:
 This article compares the behaviour of sampling techniques for price
 indices using a scanner data set as a model population. Indices produced
 by two purposive deterministic cut-off designs and four probabilistic
 sampling schemes are compared with each other and with the 'true'
 population index from the whole data set. We found that the two
 deterministic cut-off sampling schemes show much different behaviour from
 the probabilistic sampling schemes. This is not unexpected, as the former
 schemes have a very restricted focus with respect to the variety of
 products. We also found that the probabilistic schemes are generally
 closer to each other and the 'true' value than the deterministic cut-off
 designs. The jackknife resampling technique is also explored as a means of
 estimating the SE of the index and compared with the actual results from
 repeated sampling.
Journal: Applied Economics 
Pages: 2685-2699 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.909574 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909574 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2685-2699




Template-Type: ReDIF-Article 1.0
Author-Name: Shuddhasattwa Rafiq 
Author-X-Name-First: Shuddhasattwa 
Author-X-Name-Last: Rafiq 
Author-Name: Harry Bloch 
Author-X-Name-First: Harry 
Author-X-Name-Last: Bloch 
Author-Name: Ruhul Salim 
Author-X-Name-First: Ruhul 
Author-X-Name-Last: Salim 
Title: Determinants of renewable energy adoption in China and India: a comparative analysis 
Abstract:
 This article examines the dynamic relationships among output, carbon
 emission and renewable energy generation of India and China during the
 period 1972 to 2011 using a multivariate vector error correction model
 (VECM). The results for India reveal unidirectional short-run causality
 from carbon emission to renewable energy generation and from renewable
 energy generation to output, whereas in the long run, the variables have
 bidirectional causality. Causalities in China give a rather different
 scenario, with a short-run unidirectional causality from output to
 renewable energy and from carbon emission to renewable energy generation.
 In the long run, for China, unidirectional causality is found from output
 to renewable energy generation, while bidirectional causality is found
 between carbon emission and renewable energy generation.
Journal: Applied Economics 
Pages: 2700-2710 
Issue: 22 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.909577 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909577 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2700-2710




Template-Type: ReDIF-Article 1.0
Author-Name: Val鲩e Chouard 
Author-X-Name-First: Val鲩e 
Author-X-Name-Last: Chouard 
Author-Name: Daniel Fuentes Castro 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Fuentes Castro 
Author-Name: Delphine Irac 
Author-X-Name-First: Delphine 
Author-X-Name-Last: Irac 
Author-Name: Matthieu Lemoine 
Author-X-Name-First: Matthieu 
Author-X-Name-Last: Lemoine 
Title: Assessing the losses in euro area potential productivity due to the financial crisis 
Abstract:
 In this article, we show that the recent financial crisis has
 significantly affected the potential total factor productivity (TFP) of
 the four largest euro area economies, as well as that of the rest of the
 euro area. We used a reduced-form equation of TFP, based on an approach
 recently developed by Cahn and Saint-Guilhem (2010). Our empirical
 findings show that the permanent impact on potential TFP varies across
 countries from -3.9 points to -1.3 points in Q2 2012. When these losses
 are incorporated, TFP gaps develop closely in line with capacity
 utilization rates (CUR). Moreover, in the case of France, including CUR in
 our TFP model improves the quasi-real-time reliability of TFP gap
 estimates.
Journal: Applied Economics 
Pages: 2711-2720 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.887193 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887193 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2711-2720




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Author-Name: Ga&euml;l Bertrand 
Author-X-Name-First: Ga&euml;l 
Author-X-Name-Last: Bertrand 
Author-Name: Laurent Botti 
Author-X-Name-First: Laurent 
Author-X-Name-Last: Botti 
Author-Name: Scott Tainsky 
Author-X-Name-First: Scott 
Author-X-Name-Last: Tainsky 
Title: Cost efficiency of French rugby clubs 
Abstract:
 This article analyses the cost efficiency of French first-league rugby
 clubs using a stochastic frontier model. The frontier estimation confirmed
 that the model fits the data well with all coefficients correctly signed
 and in line with the theoretical requirements. The results show that one
 of the clubs is operating efficiently, with the majority of clubs
 clustered around 20% inefficiency. Policy implications are derived.
Journal: Applied Economics 
Pages: 2721-2732 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.907484 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907484 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2721-2732




Template-Type: ReDIF-Article 1.0
Author-Name: Florian I. Schumacher 
Author-X-Name-First: Florian I. 
Author-X-Name-Last: Schumacher 
Author-Name: Joilson Dias 
Author-X-Name-First: Joilson 
Author-X-Name-Last: Dias 
Author-Name: Edinaldo Tebaldi 
Author-X-Name-First: Edinaldo 
Author-X-Name-Last: Tebaldi 
Title: Two tales on human capital and knowledge spillovers: the case of the US and Brazil 
Abstract:
 This article uses a quasi-Mincerian approach to verify whether the
 concentration of college-educated individuals employed in the business
 support services sector and in the own sector contributes to increased
 productivity in other sectors of the economy. We estimate the returns to
 education using data from the 2008 US Current Population Survey (March
 supplement) and from the 2008 Brazilian household survey. This article
 finds evidence of a positive and significant human capital sectorial
 spillover effect, which is consistent with Acemoglu's (1996) conjecture.
 The sectorial concentration of highly educated workers contributes to
 increase wages for all workers. This study also finds evidence of
 increasing returns to education in Brazil and diminishing returns to
 education in the United States. This finding may be explained by
 differences in supply of skilled workers in both economies. In addition,
 the short supply of highly skilled workers in Brazil likely explains the
 importance of the spillover effect from the business supporting sector.
Journal: Applied Economics 
Pages: 2733-2743 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.909575 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909575 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2733-2743




Template-Type: ReDIF-Article 1.0
Author-Name: Mikio Ito 
Author-X-Name-First: Mikio 
Author-X-Name-Last: Ito 
Author-Name: Akihiko Noda 
Author-X-Name-First: Akihiko 
Author-X-Name-Last: Noda 
Author-Name: Tatsuma Wada 
Author-X-Name-First: Tatsuma 
Author-X-Name-Last: Wada 
Title: International stock market efficiency: a non-Bayesian time-varying model approach 
Abstract:
 This article develops a non-Bayesian methodology to analyse the
 time-varying structure of international linkages and market efficiency in
 G7 countries. We consider a non-Bayesian time-varying vector
 autoregressive (TV-VAR) model, and apply it to estimate the joint degree
 of market efficiency in the sense of Fama (1970, 1991). Our empirical
 results provide a new perspective that the international linkages and
 market efficiency change over time and that their behaviours correspond
 well to historical events of the international financial system.
Journal: Applied Economics 
Pages: 2744-2754 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.909579 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909579 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2744-2754




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Gauthier 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Gauthier 
Author-Name: Jonathan Goyette 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Goyette 
Title: Taxation and corruption: theory and firm-level evidence from Uganda 
Abstract:
 This article develops a simple framework to analyse the negotiation over
 bribe and tax payments during the tax collection process. We show that the
 larger the bribe a firm offers to a tax collector, the larger the tax
 rebate it gets. More particularly, we show that the negotiation over bribe
 and tax payments hinges on four other factors: firms' official
 liabilities, detection, firms' negotiation power and red tape costs
 imposed on firms. Some of the predictions from the theoretical model are
 tested using firm-level data from Uganda. We find that bribe and tax
 payments are inversely related, thereby supporting the hypothesis of a
 negotiation taking place between firms and tax collectors. In particular,
 a 1% point increase in average bribe payments per employee is associated
 with a 7% point reduction in average amount of tax payments per employee.
 Results are robust to various instruments dealing with the endogenous
 relationship between bribes and taxes.
Journal: Applied Economics 
Pages: 2755-2765 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.909580 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2755-2765




Template-Type: ReDIF-Article 1.0
Author-Name: Nicoletta Berardi 
Author-X-Name-First: Nicoletta 
Author-X-Name-Last: Berardi 
Author-Name: Thomas Eife 
Author-X-Name-First: Thomas 
Author-X-Name-Last: Eife 
Author-Name: Erwan Gautier 
Author-X-Name-First: Erwan 
Author-X-Name-Last: Gautier 
Title: Optimal price setting during a currency changeover: theory and evidence from french restaurants 
Abstract:
 This article studies firms' price-setting decision during a currency
 changeover. Buyers' difficulties with the new nominal price level may
 create incentives to raise prices temporarily but doing so comes at the
 risk of damaging a seller's standing as a fair retailer. We model firms'
 trade-off and study conditions under which increasing or decreasing prices
 is optimal. A difference-in-differences analysis based on micro-data of
 French restaurants strongly supports the model's predictions. Prices
 during the 2002 changeover in the European Monetary Union were less likely
 to rise in larger restaurants, nontourist restaurants and when prices were
 advertised.
Journal: Applied Economics 
Pages: 2766-2782 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.914144 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2766-2782




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Nakosteen 
Author-X-Name-First: Robert 
Author-X-Name-Last: Nakosteen 
Author-Name: Michael Zimmer 
Author-X-Name-First: Michael 
Author-X-Name-Last: Zimmer 
Title: Approval of social security disability appeals: analysis of judges' decisions 
Abstract:
 This article is an empirical analysis of decisions by judges regarding
 requests by individuals for disability benefits. Applicants for disability
 benefits who are twice denied through the normal process can appeal to one
 of the Social Security Administration's administrative law judges, who
 hold appointed positions. The data for this study are taken from decisions
 made by approximately 1000 judges for cases heard from 2010 through 2012.
 Using each judge as a unit of observation, the data reveal the number of
 cases heard and the number of approvals granted. We augmented the data
 with additional information on the presiding judge, and with data from the
 state in which the court resides. The purpose of the study is to determine
 whether a simple model can explain, first, the volume of decisions
 rendered at the judge level and, second, the proportion of approvals.
 Results indicate that the volume of decisions can be explained in part by
 the judge's recent record of leniency. Evidence also supports the
 hypothesis that approval outcomes depend on judges' professional tenure
 and economic factors in the state of jurisdiction.
Journal: Applied Economics 
Pages: 2783-2791 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.914147 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914147 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2783-2791




Template-Type: ReDIF-Article 1.0
Author-Name: Thi Hong Hanh Pham 
Author-X-Name-First: Thi Hong Hanh 
Author-X-Name-Last: Pham 
Title: Financial structure in the age of globalization 
Abstract:
 Using a large panel data set covering 160 countries over the period 1990
 to 2010, this article aims to address the question of how financial
 structure (bank-based versus market-based system) changes when economies
 are liberalized and opened to international capital markets. Specifically,
 in this study, globalization is characterized not only by trade and
 financial integration but also by other important aspects, such as social
 globalization, political globalization and cultural globalization. The
 empirical results support the impacts of globalization on financial
 structure, which are, however, diverse and strongly depend on the way to
 measure globalization and financial structure. Our finding also reveals a
 significant change in financial structure after the globalization process,
 except the case of low-income countries, in which financial structure
 seems to be not correlated with either globalization process or other
 macroeconomic variables.
Journal: Applied Economics 
Pages: 2792-2813 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.914150 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914150 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2792-2813




Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Feito-Ruiz 
Author-X-Name-First: Isabel 
Author-X-Name-Last: Feito-Ruiz 
Author-Name: Ana I. Fernᮤez 
Author-X-Name-First: Ana I. 
Author-X-Name-Last: Fernᮤez 
Author-Name: Susana Men鮤ez-Requejo 
Author-X-Name-First: Susana 
Author-X-Name-Last: Men鮤ez-Requejo 
Title: Determinants of the acquisition of listed versus unlisted firms in different legal and institutional environments 
Abstract:
 The aim of this article is to analyse the determinants of the decision to
 acquire unlisted rather than listed firms in different legal and
 institutional environments. We estimate a probit model considering the
 mergers and acquisitions (M&As) announced by European listed firms (19
 countries) that acquires worldwide listed or unlisted firms (36 countries)
 in the period 2002-2007. Our results show that managerial opportunism is a
 determinant in the acquisition of listed firms, occurring with greater
 probability in acquiring countries with low shareholder and minority
 shareholder protection. Information asymmetry is another relevant
 determinant that promotes the acquisitions of unlisted firms. Furthermore,
 the less developed the capital market in the country of the acquired firm,
 the greater the probability of acquisitions of unlisted firms. This
 article contributes to the M&A literature by showing that in addition to
 managerial opportunism and information asymmetry, the legal and
 institutional environments in both the acquiring and the target countries
 are also relevant aspects explaining the decision of whether to acquire
 listed or unlisted firms.
Journal: Applied Economics 
Pages: 2814-2832 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.914146 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2814-2832




Template-Type: ReDIF-Article 1.0
Author-Name: Antti Saastamoinen 
Author-X-Name-First: Antti 
Author-X-Name-Last: Saastamoinen 
Author-Name: Timo Kuosmanen 
Author-X-Name-First: Timo 
Author-X-Name-Last: Kuosmanen 
Title: Is corruption grease, grit or a gamble? Corruption increases variance of productivity across countries 
Abstract:
 The effect of corruption on economic growth has attracted interest in
 empirical development economics. The conventional view of corruption as
 impediment for growth has been challenged by the 'grease-on-the-wheels'
 hypothesis. We take a new perspective on the issue and suggest corruption
 as macro risk, referred to as a 'gamble' hypothesis. Using cross-country
 data and two alternative indicators of corruption, we find corruption to
 be a significant driver of heteroscedasticity in total productivity. This
 supports the new gamble hypothesis. We also note some misleading
 interpretations in the previously published frontier applications. To
 avoid these shortcomings, we apply a flexible semi-nonparametric
 estimator.
Journal: Applied Economics 
Pages: 2833-2849 
Issue: 23 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.914149 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914149 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2833-2849




Template-Type: ReDIF-Article 1.0
Author-Name: Eero P䴤ri 
Author-X-Name-First: Eero 
Author-X-Name-Last: P䴤ri 
Author-Name: Mika Vilska 
Author-X-Name-First: Mika 
Author-X-Name-Last: Vilska 
Title: Performance of moving average trading strategies over varying stock market conditions: the Finnish evidence 
Abstract:
 This article examines the profitability of dual moving average crossover
 (DMAC) trading strategies in the Finnish stock market over the period 1996
 to 2012. It contributes to the existing technical analysis literature by
 comparing for the first time the performance of DMAC trading portfolios of
 individual stocks to the performance of index trading strategies based on
 trading on an index that consists of the same stocks. The results show
 that their relative performance varies over time, whereas previous studies
 have documented outperformance of index trading strategies over trading
 strategies of stock portfolios. Moreover, the great majority of 3020 DMAC
 strategies examined in this article outperform the corresponding
 buy-and-hold (B and H) strategy for both trading targets (i.e., OMX
 Helsinki 25 index and individual stocks included in the index) in
 out-of-sample tests. In addition, the decomposition of the
 full-sample-period performance into separate bull- and bear-period
 performance shows clearly that the outperformance of DMAC strategies over
 B and H strategy is mostly attributable to their better performance during
 bearish periods.
Journal: Applied Economics 
Pages: 2851-2872 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.914145 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914145 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2851-2872




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Artz 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Artz 
Author-Name: Ilker Kaya 
Author-X-Name-First: Ilker 
Author-X-Name-Last: Kaya 
Title: The impact of job security on job satisfaction in economic contractions versus expansions 
Abstract:
 Job security, often measured using the perceived risk of job loss in the
 near future, is a significant determinant of job satisfaction. We posit
 that the impact job security has on job satisfaction is not only a
 function of how likely it is that a worker loses a job but also how likely
 it is that a worker could find another. The effect this has on worker job
 satisfaction then is different depending on whether perceived job loss
 occurs (or not) when job openings are scarce or when job openings are
 plentiful. We use difference-in-differences analysis of the 1997 and 2008
 waves from the National Study of the Changing Workforce to show that three
 measures of job security increase private sector worker job satisfaction,
 and reduce worker incentives to quit, more when job openings are
 relatively scarce (during contractions) than when job openings are
 relatively plentiful (during expansions). We find that our results are
 strongest among less-educated workers.
Journal: Applied Economics 
Pages: 2873-2890 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.914148 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914148 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2873-2890




Template-Type: ReDIF-Article 1.0
Author-Name: G. R. Chen 
Author-X-Name-First: G. R. 
Author-X-Name-Last: Chen 
Title: How do advertised brands benefit from private labels? An application of rational expectations models 
Abstract:
 Private labels have traditionally been viewed as a threat to advertised
 brands. Contrary to traditional wisdom, this study uses a two-asset
 rational expectations model to show that advertised brands could benefit
 from private labels. While the manufacturer's advertising creates product
 differentiation, the retailer's synchronous pricing strategy further
 enhances the product differentiation and raises profits as well as the
 efficiency of price discounts for the advertised brand. In addition, the
 existence of private labels improves the advertising efficiency,
 especially for newly introduced brands. The economic role of private
 labels is not limited to taking a free ride on the manufacturer's
 advertising efforts, and this role cannot be replaced by another
 advertised brand.
Journal: Applied Economics 
Pages: 2891-2902 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.916388 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916388 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2891-2902




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Cezar 
Author-X-Name-First: Rafael 
Author-X-Name-Last: Cezar 
Title: The heterogeneous effect of finance on international trade 
Abstract:
 Is the impact of financial development on international trade
 heterogeneous - being positive, negative or null - across manufacturing
 sectors? And is it dependent on the level of sectoral requirement on
 external finance for capital need? To examine these questions this article
 uses a panel trade database on 21 manufacturing sectors in 80 countries
 between 2000 and 2009. The analysis demonstrates that the effect of
 financial development on trade is indeed heterogeneous by estimating a
 coefficient for each sector and showing that the signs and significance
 levels vary across them. The article also demonstrates that sectors with
 strong reliance on external finance export higher volume from countries
 with developed financial system and that financial development reduces
 trade in industries with low financial dependence level.
Journal: Applied Economics 
Pages: 2903-2919 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.916389 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916389 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2903-2919




Template-Type: ReDIF-Article 1.0
Author-Name: Jie Li 
Author-X-Name-First: Jie 
Author-X-Name-Last: Li 
Author-Name: Han Yu 
Author-X-Name-First: Han 
Author-X-Name-Last: Yu 
Title: Income inequality and financial reform in Asia: the role of human capital 
Abstract:
 We investigate whether financial reform can reduce income inequality in
 Asia, with particular emphasis on the role of human capital. Extending
 Galor and Zeira (1993), we demonstrate that financial reform is effective
 in reducing income inequality, and the effect is more profound in a
 country with higher human capital. Using the data for 18 countries in
 Asia, the region with the most promising financial reform, we confirm our
 theoretical finding. In addition, among disaggregated financial reforms,
 lift of credit control, better banking supervision and security market
 development seem to be significantly associated with reduction of income
 inequality.
Journal: Applied Economics 
Pages: 2920-2935 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.916390 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916390 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2920-2935




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Avdjiev 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Avdjiev 
Author-Name: Zheng Zeng 
Author-X-Name-First: Zheng 
Author-X-Name-Last: Zeng 
Title: Credit growth, monetary policy and economic activity in a three-regime TVAR model 
Abstract:
 We employ a Threshold Vector Autoregression (TVAR) methodology in order to
 examine the nonlinear nature of the interactions among credit market
 conditions, monetary policy and economic activity. We depart from the
 existing literature on the subject along two dimensions. First, we focus
 on a model in which the relevant threshold variable describes the state of
 economic activity rather than credit market conditions. Second, in
 contrast to the existing TVAR literature, which concentrates exclusively
 on single-threshold models, we allow for the presence of a second
 threshold, which is overwhelmingly supported by all relevant statistical
 tests. Our results indicate that the dynamics of the interactions among
 credit market conditions, monetary policy and economic activity change
 considerably as the economy moves from one phase of the business cycle to
 another and that single-threshold TVAR models are too restrictive to fully
 capture the nonlinear nature of those interactions. The impact of most
 shocks tends to be largest during periods of subpar economic activity and
 smallest during times of moderate economic growth. By contrast, credit
 risk shocks have the largest impact when output growth is considerably
 above its long-term trend.
Journal: Applied Economics 
Pages: 2936-2951 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.916391 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916391 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2936-2951




Template-Type: ReDIF-Article 1.0
Author-Name: D. Flannery 
Author-X-Name-First: D. 
Author-X-Name-Last: Flannery 
Author-Name: J. Cullinan 
Author-X-Name-First: J. 
Author-X-Name-Last: Cullinan 
Title: Where they go, what they do and why it matters: the importance of geographic accessibility and social class for decisions relating to higher education institution type, degree level and field of study 
Abstract:
 This article considers the impact of geographic accessibility and social
 class on school leavers when making decisions relating to higher education
 institution (HEI) type, degree level and field of study. Using a novel and
 comprehensive Irish data set, we consider a number of joint decisions
 facing school leavers in relation to where and what to study and employ a
 range of bivariate choice models which allows us to control for
 correlations in these decisions. We find that geographic accessibility and
 social class play an important role in determining outcomes relating to
 HEI type, degree level and field of study. We argue that these decisions
 are important in terms of future labour market and other outcomes for
 school leavers and that current policy in Ireland does not go far enough
 in mitigating the impact of distance and socio-economic barriers on these
 outcomes.
Journal: Applied Economics 
Pages: 2952-2965 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.916392 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916392 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2952-2965




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Balcilar 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Stephen M. Miller 
Author-X-Name-First: Stephen M. 
Author-X-Name-Last: Miller 
Title: Housing and the Great Depression 
Abstract:
 This article considers the structural stability of the relationship
 between the real housing price and real GDP per capita for an annual
 sample that includes the Great Depression. We test for structural change
 in parameter values using a sample of annual US data from 1890 to 1952.
 The article examines the long-run and short-run dynamic relationships
 between the real housing price and real GDP per capita to determine
 whether these relationships experienced structural change over the sample
 period. We find that temporal Granger causality exists between these two
 variables only for subsamples that include the Great Depression. For the
 other subsample periods as well as for the entire sample period, no
 relationship exists between these variables.
Journal: Applied Economics 
Pages: 2966-2981 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.916393 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916393 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2966-2981




Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Mart𓐊Author-X-Name-First: Luisa 
Author-X-Name-Last: Mart𓐊Author-Name: Rosa Puertas 
Author-X-Name-First: Rosa 
Author-X-Name-Last: Puertas 
Author-Name: Leandro Garc𨀍
Author-X-Name-First: Leandro 
Author-X-Name-Last: Garc𨀍
Title: The importance of the Logistics Performance Index in international trade 
Abstract:
 Logistics and transport increasingly play a pivotal role in international
 trade relations. The Logistics Performance Index (LPI) analyses
 differences between countries in terms of customs procedures, logistics
 costs and the quality of the infrastructure for overland and maritime
 transport. The aim of this article is to analyse the impact that each of
 these components has on trade in emerging economies using a gravity model.
 Furthermore, the study also attempts to detect possible advances in
 logistics in developing countries, which are grouped into five regions
 (Africa, South America, Far East, Middle East and Eastern Europe) by
 comparing the first LPI data published in 2007 with the most recent data,
 released in 2012. The results obtained reveal that improvements in any of
 the components of the LPI can lead to significant growth in a country's
 trade flows. Specifically, LPI components are becoming increasingly
 important for international trade in many countries in Africa, South
 America and Eastern Europe.
Journal: Applied Economics 
Pages: 2982-2992 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.916394 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916394 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2982-2992




Template-Type: ReDIF-Article 1.0
Author-Name: Bo Xiong 
Author-X-Name-First: Bo 
Author-X-Name-Last: Xiong 
Author-Name: Sixia Chen 
Author-X-Name-First: Sixia 
Author-X-Name-Last: Chen 
Title: Estimating gravity equation models in the presence of sample selection and heteroscedasticity 
Abstract:
 Gravity models are widely used to explain patterns of trade. However, two
 stylized features of trade data, sample selection and heteroscedasticity
 challenge the estimation of gravity models. We propose a two-step method
 of moments (TS-MM) estimator that deals with both issues. The Monte-Carlo
 experiments show that the TS-MM estimates are resistant to various
 combinations of sample selection and heteroscedasticity. Moreover, the
 TS-MM estimator performs reasonably well even when the data generating
 process deviates from the TS-MM assumptions. We revisit the world trade in
 1990 to illustrate the usefulness of the proposed model, with emphasis on
 the identification of the extensive margin of trade.
Journal: Applied Economics 
Pages: 2993-3003 
Issue: 24 
Volume: 46 
Year: 2014 
Month: 8 
X-DOI: 10.1080/00036846.2014.920481 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920481 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2993-3003




Template-Type: ReDIF-Article 1.0
Author-Name: Md Akhtaruzzaman 
Author-X-Name-First: Md 
Author-X-Name-Last: Akhtaruzzaman 
Author-Name: Paul Docherty 
Author-X-Name-First: Paul 
Author-X-Name-Last: Docherty 
Author-Name: Abul Shamsuddin 
Author-X-Name-First: Abul 
Author-X-Name-Last: Shamsuddin 
Title: Interest rate, size and book-to-market effects in Australian financial firms 
Abstract:
 The Fama-French three-factor model (1993) has been extensively used to
 study the pricing of nonfinancial stocks. This study provides the first
 examination of the pricing of Australian financial stocks using the
 Fama-French framework. The four-factor model (market, size, book-to-market
 and momentum) augmented with the level, slope and curvature of the
 interest rate term structure is used to examine the pricing of Australian
 financial stocks. The interest rate factors have not been previously
 considered for pricing Australian stocks within the Fama-French framework.
 Consistent with US evidence, we use a system-based estimation to show that
 the size and book-to-market factors are not priced in the cross section of
 the equity returns of Australian financial stocks. Momentum and term
 spread are priced in the equity returns of both financial and nonfinancial
 stocks. These findings are robust to the inclusion of control variables
 such as default spread, the inflation rate and a dummy variable for the
 global financial crisis.
Journal: Applied Economics 
Pages: 3005-3020 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.920478 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920478 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3005-3020




Template-Type: ReDIF-Article 1.0
Author-Name: Kurt A. Hafner 
Author-X-Name-First: Kurt A. 
Author-X-Name-Last: Hafner 
Title: Technology spillover effects and economic integration: evidence from integrating EU countries 
Abstract:
 The article uses time series for the period 1981-2008 to estimate the
 impact of foreign technology spillover effects on Greece, Ireland,
 Portugal and Spain, representing the integrating European Union (EU)
 countries. I restrict technology diffusion to EU-12 countries and compare
 the results to unrestricted technology diffusion from a sample of 32 OECD
 countries. Accounting for nonstationarity and co-integration, the dynamic
 OLS estimator is used to estimate the impact of foreign R&D stock on
 labour productivity, taking into account patent-, trade- and FDI-related
 technology diffusion channels. I find empirical evidence for trade-related
 foreign technology spillover effects for Greece and Ireland if technology
 diffusion is unrestricted. Restricting technology diffusion to EU-12
 countries, there are significant foreign technology spillover effects from
 European integration for Portugal (patent related) and Spain (trade and
 FDI related). Moreover, the domestic R&D stock and education are
 significant drivers for labour productivity in integrating EU countries.
 The empirical results are robust for different regression specifications
 and sources of technology diffusion.
Journal: Applied Economics 
Pages: 3021-3036 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.920479 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920479 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3021-3036




Template-Type: ReDIF-Article 1.0
Author-Name: Nakil Sung 
Author-X-Name-First: Nakil 
Author-X-Name-Last: Sung 
Title: Market concentration and competition in OECD mobile telecommunications markets 
Abstract:
 This study analyses the progress of market concentration in OECD member
 states' mobile telecommunications markets and evaluates the relationship
 between market concentration and performance. Using annual panel data from
 24 OECD member states for the 1998-2011 period, the study estimates
 regression equations for market concentration, mobile prices and profits.
 The empirical results indicate that the more concentrated the mobile
 market, the higher the prices and profits, providing support for the
 market power hypothesis. If this hypothesis holds, then market
 concentration can be a useful indicator of market performance. On the
 other hand, the applicability of the hypothesis is unclear for the second
 half of the sample period. The results provide evidence that regulatory
 policies influence the structure and performance of mobile markets.
Journal: Applied Economics 
Pages: 3037-3048 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.920480 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920480 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3037-3048




Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Musshoff 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Musshoff 
Author-Name: Norbert Hirschauer 
Author-X-Name-First: Norbert 
Author-X-Name-Last: Hirschauer 
Title: Using business simulation games in regulatory impact analysis - the case of policies aimed at reducing nitrogen leaching 
Abstract:
 In the past, regulatory impact analysis was predominantly based on the
 rational-choice-assumption of a completely informed and exclusively
 profit-maximizing homo oeconomicus. Real economic actors, however, are
 multiple-goal and boundedly rational decision-makers. An exclusive
 reliance on rational-choice models therefore generates the risk that both
 the pace and the type of behavioural adaptations to changing institutional
 environments are misjudged. Against this background, this article
 addresses three questions. First, can we use business simulation games as
 a convincing but low-cost experimental tool for policy analysis? Second,
 how do intentionally varied nitrogen extensification schemes impact the
 behaviour of students who participate in an explorative business
 simulation study? Third, do nitrogen reduction policies that are framed as
 voluntary as opposed to prescriptive schemes have a different impact on
 behaviour even if they lead to the same profits respectively? In our
 business simulation game, the student-participants take the role of
 farmers who are confronted with different policy measures aimed at
 reducing nitrogen loads. The student-farmers react very differently to
 different measures even though all measures have an identical impact on
 profitability. This is an indication that the behavioural changes that can
 be achieved per Euro of the taxpayers' money, and therefore the cost
 efficiency (and smartness) of regulatory measures, are contingent on their
 specific design.
Journal: Applied Economics 
Pages: 3049-3060 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.920482 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920482 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3049-3060




Template-Type: ReDIF-Article 1.0
Author-Name: Kady Marie-Danielle Body 
Author-X-Name-First: Kady Marie-Danielle 
Author-X-Name-Last: Body 
Author-Name: Liliane Bonnal 
Author-X-Name-First: Liliane 
Author-X-Name-Last: Bonnal 
Author-Name: Jean-Fran篩s Giret 
Author-X-Name-First: Jean-Fran篩s 
Author-X-Name-Last: Giret 
Title: Does student employment really impact academic achievement? The case of France 
Abstract:
 Student employment is usually thought to curb academic achievement. Our
 research relating to a survey at a French university in 2012 emphasizes
 the significance of the intensity of student working hours. Allowance for
 the endogeneity of student employment reinforces the negative effects,
 particularly for young people working more than 16 hours a week. However,
 the academic achievement of those working fewer than 8 hours per week
 seems unaffected. The type of employment also affects the chances of
 success: students with public sector jobs appear to be less prone to
 failure, possibly because of more flexible working hours.
Journal: Applied Economics 
Pages: 3061-3073 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.920483 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920483 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3061-3073




Template-Type: ReDIF-Article 1.0
Author-Name: An Chen 
Author-X-Name-First: An 
Author-X-Name-Last: Chen 
Title: Incentive-compatible compensation and regulation 
Abstract:
 This article uses contingent claims analysis and regulatory constraints to
 show how a bank can create incentive-compatible compensation for the
 senior management aligned with the interests of the other stakeholders.
 For this purpose, the remuneration package takes the form of a 'call
 spread' on the bank's equity. Unlike regular stock option programmes, a
 call spread limits the upside potential for the senior management. This
 prevents unlimited risk taking. Additionally, a maximum regulatory default
 probability also constrains risk-taking behaviour. We show under which
 parameterizations the remuneration package and the regulatory constraint
 offer equal incentives for the senior management.
Journal: Applied Economics 
Pages: 3074-3081 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.922671 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922671 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3074-3081




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Malikane 
Author-X-Name-First: Christopher 
Author-X-Name-Last: Malikane 
Author-Name: Tshepo Mokoka 
Author-X-Name-First: Tshepo 
Author-X-Name-Last: Mokoka 
Title: The new Keynesian Phillips curve: endogeneity and misspecification 
Abstract:
 The wrong or insignificant sign of the forcing variable in the new
 Keynesian Phillips curve estimations may be a result of the endogeneity of
 the labour share and misspecification of real marginal cost in the
 baseline model. We address the misspecification of real marginal cost by
 formulating a broad measure that features the labour share, output gap and
 supply shock variables. The endogeneity of the labour share is addressed
 by using an appropriate lag of the labour share in the Phillips curve.
 Reduced-form evidence from five developed and five emerging market
 economies support the empirical validity of the NKPC.
Journal: Applied Economics 
Pages: 3082-3089 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.922672 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922672 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3082-3089




Template-Type: ReDIF-Article 1.0
Author-Name: Maciej Albinowski 
Author-X-Name-First: Maciej 
Author-X-Name-Last: Albinowski 
Author-Name: Piotr Ci&#x17c;kowicz 
Author-X-Name-First: Piotr 
Author-X-Name-Last: Ci&#x17c;kowicz 
Author-Name: Andrzej Rzo&#x144;ca 
Author-X-Name-First: Andrzej 
Author-X-Name-Last: Rzo&#x144;ca 
Title: Links between trust in the ECB and its interest rate policy 
Abstract:
 We analyse determinants of trust in the European Central Bank (ECB). Our
 main finding is that when households have pessimistic expectations,
 aggressive cuts in interest rates have an adverse effect on their trust in
 central bank. This result is in accordance with the 'lack-of-confidence
 shock' hypothesis developed by Schmitt-Groh頡nd Uribe (2012) and in
 contrast with the 'fundamental shock' hypothesis which implies positive
 effects of aggressive cuts for trust in the ECB. The result is robust to
 various changes in the modelling approach.
Journal: Applied Economics 
Pages: 3090-3106 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.922674 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922674 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3090-3106




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Author-Name: Kelly Burns 
Author-X-Name-First: Kelly 
Author-X-Name-Last: Burns 
Title: Error correction modelling and dynamic specifications as a conduit to outperforming the random walk in exchange rate forecasting 
Abstract:
 The proposition that dynamic exchange rate models can outperform the
 random walk in out-of-sample forecasting, in the sense that they produce
 lower mean square errors, is examined and disputed. By using several
 dynamic versions of three macroeconomic exchange rate models, it is
 demonstrated that dynamic specifications outperform the corresponding
 static models but improvement in the forecasting power may not be
 sufficient for the dynamic models to perform better than the random walk.
 The results are explained by suggesting that any dynamic specification or
 transformation of the static model leads to the introduction of a lagged
 dependent variable, which in effect is a random walk component. The
 analysis leads to the conclusion that it is implausible to aim at beating
 the random walk by augmenting a static model with a random walk component.
Journal: Applied Economics 
Pages: 3107-3118 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.922675 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922675 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3107-3118




Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Neuenkirch 
Author-X-Name-First: Matthias 
Author-X-Name-Last: Neuenkirch 
Title: Federal Reserve communications and newswire coverage 
Abstract:
 In this article, we explore the determinants of newswire coverage of
 Federal Reserve (Fed) communications. Our sample covers all 344
 forward-looking communications made in the period May 1999 to May 2004. We
 find, first, that there is a higher likelihood of newswire coverage for
 monetary policy reports and speeches by Chairman Greenspan than for
 testimony and speeches by other Fed members. Furthermore, communications
 with an explicit monetary policy inclination or tone different from the
 current interest rate path are particularly likely to be covered. However,
 the release of important macroeconomic news reduces the likelihood of
 newswire coverage. Second, speeches by regional Fed presidents are
 relatively less likely to be reported than speeches by Board members.
 Nevertheless, newswire coverage of Fed president speeches is more likely
 if central bank communication is stale. Finally, our results indicate that
 Ben Bernanke played a distinguished role even before his Chairmanship.
Journal: Applied Economics 
Pages: 3119-3129 
Issue: 25 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.922676 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922676 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3119-3129




Template-Type: ReDIF-Article 1.0
Author-Name: Alita Nandi 
Author-X-Name-First: Alita 
Author-X-Name-Last: Nandi 
Author-Name: Cheti Nicoletti 
Author-X-Name-First: Cheti 
Author-X-Name-Last: Nicoletti 
Title: Explaining personality pay gaps in the UK 
Abstract:
 Using the British Household Panel Survey we estimate the effect on pay of
 each of the Big Five personality traits for employed men living in the UK.
 We add to the existing literature by estimating the role of factors such
 as education and occupation in explaining personality pay gaps, by
 allowing the personality traits to affect wage differently across
 occupations, education levels and other workers characteristics, and by
 investigating personality pay gaps for high- and low-paid workers. We find
 that openness to experience is the most relevant personality trait in
 explaining wages, followed by neuroticism, agreeableness, extroversion and
 conscientiousness. Openness and extroversion are rewarded while
 agreeableness and neuroticism are penalized, but the openness pay gap is
 totally explained by differences in worker characteristics, particularly
 education and occupation.
Journal: Applied Economics 
Pages: 3131-3150 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.922670 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922670 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3131-3150




Template-Type: ReDIF-Article 1.0
Author-Name: Cem &Ccedil;ebi 
Author-X-Name-First: Cem 
Author-X-Name-Last: &Ccedil;ebi 
Author-Name: Ali Ask&#x131;n &Ccedil;ulha 
Author-X-Name-First: Ali Ask&#x131;n 
Author-X-Name-Last: &Ccedil;ulha 
Title: The effects of government spending shocks on the real exchange rate and trade balance in Turkey 
Abstract:
 The aim of this study is to investigate the effects of government spending
 shocks on the real exchange rate and foreign trade balance in Turkey for
 the period of 2002:01-2012:04 within a structural VAR framework. The
 analysis shows that a positive shock to the government spending tends to
 induce real exchange rate appreciation and deterioration in trade balance.
 We also find that the composition of the government spending matters.
 Although shocks to the government nonwage consumption generate an
 appreciation in the real exchange rate and worsening of the trade balance,
 the effects of government investment shocks remain insignificant.
 Furthermore, the analysis demonstrates that shocks to government spending
 are associated with a rise in taxes, which is indicative of a
 spending-driven tax adjustment process in Turkey.
Journal: Applied Economics 
Pages: 3151-3162 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.922673 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922673 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3151-3162




Template-Type: ReDIF-Article 1.0
Author-Name: Miroslava Rajcaniova 
Author-X-Name-First: Miroslava 
Author-X-Name-Last: Rajcaniova 
Author-Name: d'Artis Kancs 
Author-X-Name-First: d'Artis 
Author-X-Name-Last: Kancs 
Author-Name: Pavel Ciaian 
Author-X-Name-First: Pavel 
Author-X-Name-Last: Ciaian 
Title: Bioenergy and global land-use change 
Abstract:
 This is the first article that econometrically estimates the global
 land-use change impact of bioenergy. Applying time-series analytical
 mechanisms to fuel, biofuel and agricultural commodity prices and
 production, we estimate the long-run relationship between energy prices,
 bioenergy production and the global land-use change. Our results suggest
 that rising energy prices and bioenergy production significantly
 contribute to the global land-use change both through the direct and
 indirect land-use change impact. Globally, the total agricultural area
 yearly increases by 35 578.1 thousand ha due to increasing oil price, and
 by 12 125.1 thousand ha due to increasing biofuel production, which
 corresponds to 0.73% and 0.25% of the total worldwide agricultural area,
 respectively. Soya land-use change and wheat land-use change have the
 highest elasticities with respect to both oil price and biofuel
 production. In contrast, nonbiomass crops (grassland and rice) have
 negative land-use change elasticities. Region-specific results suggest
 that South America faces the largest yearly total land-use change
 associated with oil price increase (+10 600.7 thousand ha), whereas Asia
 (+8918.6 thousand ha), South America (+4024.9 thousand ha) and North
 America (+1311.5 thousand ha) have the largest yearly total land-use
 change associated with increase in biofuel production.
Journal: Applied Economics 
Pages: 3163-3179 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.925076 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3163-3179




Template-Type: ReDIF-Article 1.0
Author-Name: Jason Loughrey 
Author-X-Name-First: Jason 
Author-X-Name-Last: Loughrey 
Author-Name: Thia Hennessy 
Author-X-Name-First: Thia 
Author-X-Name-Last: Hennessy 
Title: Hidden underemployment among Irish farm holders 2002-2011 
Abstract:
 This article examines the scale of hidden underemployment on Irish farms
 from 2002 to 2011. We provide a measure of hidden underemployment that is
 not captured by the national-level statistics. Hidden underemployment can
 be attributed to a number of factors relating to inadequate employment
 situations as described at the 16th International Conference of Labour
 Statisticians such as low productivity, the poor utilization of skills and
 other factors specific to agriculture. We place particular attention upon
 the potential role of off-farm labour supply in solving the
 underemployment problem. We utilize a two-stage residual inclusion model
 and a random effects probit model to examine the forces behind farm
 underemployment. We utilize a fixed effects model to examine the factors
 driving the severity of farm underemployment. Our findings suggest that
 instances of hidden underemployment increased between 2002 and 2011.
 Hidden underemployment appears to be a stubborn problem and is related to
 the absence of off-farm employment, low yield, livestock intensity and
 smaller than average farm size in the sheep and drystock cattle sectors in
 particular.
Journal: Applied Economics 
Pages: 3180-3192 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.925077 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925077 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3180-3192




Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yil Choi 
Author-X-Name-First: Yong-Yil 
Author-X-Name-Last: Choi 
Title: Lax money supply under globalization and detecting an early sign to anticipate deep recession 
Abstract:
 This article uncovers a macroeconomic threshold for avoiding deep
 recession under globalization. The analysis shows that there is a long-run
 natural rate of substitution between the broadest measure of money
 balances and nominal government spending, namely the natural fiscal
 velocity. Applying this threshold to the actual economy can give us two
 benefits: first, comparing the actual rate of substitution between the
 broadest measure of money balances and nominal government spending with
 the natural fiscal velocity can provide an early sign to anticipate deep
 recession under globalization. Second, controlling the actual fiscal
 velocity so as not to exceed the natural one is such a macro calibration
 that the authorities can easily justify their pre-emptive actions as a
 means of avoiding a deep recession trap under globalization.
Journal: Applied Economics 
Pages: 3193-3201 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.925078 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3193-3201




Template-Type: ReDIF-Article 1.0
Author-Name: Martha Jim鮥z 
Author-X-Name-First: Martha 
Author-X-Name-Last: Jim鮥z 
Author-Name: Jaime Arturo Matus 
Author-X-Name-First: Jaime Arturo 
Author-X-Name-Last: Matus 
Author-Name: Miguel Angel Mart󹑺 
Author-X-Name-First: Miguel Angel 
Author-X-Name-Last: Mart󹑺 
Title: Economic growth as a function of human capital, internet and work 
Abstract:
 The World Bank has suggested the need to enhance Information and
 Communication Technology skills in all sectors because a 10% increase in
 internet connectivity was found to boost GDP growth by 1.38%.
 Simultaneously, the OECD argued that high internet access rates generate a
 2% increase in GDP. Because the internet positively affects economic
 growth, we investigated the relationship between an economically active
 population, human capital and technology to evaluate these effects in
 Mexico. A data series from 1991 to 2010 was analysed in three stages
 according to the least-squares method. A Cobb-Douglas function under the
 Solow model was considered. Technology and internet access were found to
 positively affect top-level students and graduate students and thus
 contribute to the global innovation index.
Journal: Applied Economics 
Pages: 3202-3210 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.925079 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925079 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3202-3210




Template-Type: ReDIF-Article 1.0
Author-Name: Chen Ling 
Author-X-Name-First: Chen 
Author-X-Name-Last: Ling 
Author-Name: David Scrogin 
Author-X-Name-First: David 
Author-X-Name-Last: Scrogin 
Title: Optimal pricing of public lotteries and comparison of competing mechanisms 
Abstract:
 This article establishes optimal pricing rules for rationing indivisible
 units of rival and otherwise nonexcludable goods by lottery or a hybrid of
 a lottery and outright sale by posted price. Given the distributional
 objective of maximizing expected consumer surplus, the solutions to
 unconstrained and constrained versions of the pricing problem may be
 expressed in classic inverse elasticity form, with the lottery price
 appearing as an entry fee, user fee or a combination of the two. Numerical
 analysis of a rich class of private value distributions indicates that
 sizable gains in expected consumer surplus can be realized over
 competitive pricing and zero pricing.
Journal: Applied Economics 
Pages: 3211-3223 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.925080 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925080 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3211-3223




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Cheng Liu 
Author-X-Name-First: Yi-Cheng 
Author-X-Name-Last: Liu 
Author-Name: I-Cheng Yeh 
Author-X-Name-First: I-Cheng 
Author-X-Name-Last: Yeh 
Title: Which drives abnormal returns, over- or under-reaction? Studies applying longitudinal analysis 
Abstract:
 This article combined both cross-sectional and time-series longitudinal
 analysis to identify that factor anomalies are driven by either
 over-reaction or under-reaction. The basic principle is, first, use a
 factor to form 10 portfolios in the <italic>t</italic> quarter, then
 observe the average prices and returns of the 10 portfolios for the
 previous four quarters and for the following four quarters as well.
 Samples in this study contain all stocks listed in the US from 1990 to
 2010. The empirical evidence shows that the reason for the abnormal
 returns of value (book-to-price ratios, earnings-to-price ratios,
 sales-to-price ratios), scale and liquidity factors is over-reaction.
 Meanwhile, the reason for the abnormal returns of growth factors (return
 on equity, return on assets and revenue growth rate) is under-reaction.
 The results provide significant policy implications. The anomaly returns
 of the value, scale and liquidity factors last longer and are more
 appropriate to be employed for long-run investment while the growth
 factors are better suited for short-run investment. Furthermore, a more
 profitable stock-selection strategy can be formed by simultaneously
 considering the above two types of factors to capture both of these two
 sources of anomaly returns.
Journal: Applied Economics 
Pages: 3224-3235 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.925081 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925081 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3224-3235




Template-Type: ReDIF-Article 1.0
Author-Name: Sule Akkoyunlu 
Author-X-Name-First: Sule 
Author-X-Name-Last: Akkoyunlu 
Author-Name: Boriss Siliverstovs 
Author-X-Name-First: Boriss 
Author-X-Name-Last: Siliverstovs 
Title: Does the law of one price hold in a high-inflation environment? A tale of two cities in Turkey 
Abstract:
 This study addresses the price convergence in two cities in Turkey
 (Istanbul and Ankara) using annual data over the three-quarters of the
 twentieth century (1922-1998), characterized by prevailing high inflation
 rates for most of the period. In contrast to the rest of the literature
 addressing convergence in price levels with a typical result of extremely
 slow convergence rates at best, we argue that convergence is much easier
 detected in growth rates rather than levels of prices. We suggest using
 the bounds testing procedure of Pesaran <italic>et al.</italic> (2001) for
 this purpose. We find a clear-cut evidence on the existence of a common
 driving force behind inflation dynamics in Istanbul and Ankara - a finding
 that is in contrast with the results typically reported in related
 literature.
Journal: Applied Economics 
Pages: 3236-3245 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.925190 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925190 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3236-3245




Template-Type: ReDIF-Article 1.0
Author-Name: Md. Al Mamun 
Author-X-Name-First: Md. 
Author-X-Name-Last: Al Mamun 
Author-Name: Guneratne B. Wickremasinghe 
Author-X-Name-First: Guneratne B. 
Author-X-Name-Last: Wickremasinghe 
Title: Dynamic linkages between diffusion of Information Communication Technology and labour productivity in South Asia 
Abstract:
 At present, diffusion of Information Communication Technology (ICT) is a
 significant area of concern for sustainable development and growth of a
 country. Regions with abundant labour such as South Asia require
 significant improvements in the diffusion of ICT to achieve higher
 productivity for their labour, which in turn can increase the pace of
 economic growth. In this context, the objective of this study is to
 investigate whether ICT could be used to improve labour productivity for
 countries in South Asia. This study first investigates the general status
 of diffusion of ICT among South Asian countries. The initial results based
 on descriptive statistics indicate that there is a significant gap among
 the South Asian countries, with Maldives having the highest ICT
 facilities. Second, using robust panel data methodologies, this study
 concludes that South Asia's drive for higher productivity of its abundant
 labour force can substantially be improved in the long-run by increasing
 diffusion of ICT in the presence of trade openness as well as domestic
 capital formulation.
Journal: Applied Economics 
Pages: 3246-3260 
Issue: 26 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.927573 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927573 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3246-3260




Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Bernhard 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Bernhard 
Author-Name: Eva Kopf 
Author-X-Name-First: Eva 
Author-X-Name-Last: Kopf 
Title: Courses or individual counselling: does job search assistance work? 
Abstract:
 How does labour market policy affect welfare recipients and long-term
 unemployed people? We investigate whether job search assistance (JSA)
 helps disadvantaged individuals to find jobs and whether courses or
 individual counselling is more successful in reaching this goal. To
 evaluate individual employment effects, we apply a quasi-experimental
 design and construct suitable comparison groups using propensity score
 matching methods. We compare participants to nonparticipants as well as
 participants of both schemes directly. Our article benefits from access to
 rich administrative data from the German Federal Employment Agency. When
 comparing participants to nonparticipants, results suggest that the
 individual JSA does not affect participants' employment prospects at all
 and that the course JSA even decreased their employment chances. At the
 same time, differences in these effects can be ascribed to programme
 design differences and to differences in the groups of participants.
 Therefore, we compare both programmes directly to each other, that is, we
 use the other programme participants as a comparison group, respectively.
 We found some evidence that individual JSA performs better than course
 JSA.
Journal: Applied Economics 
Pages: 3261-3273 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.927567 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927567 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3261-3273




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Benz 
Author-X-Name-First: Sebastian 
Author-X-Name-Last: Benz 
Author-Name: Mario Larch 
Author-X-Name-First: Mario 
Author-X-Name-Last: Larch 
Author-Name: Markus Zimmer 
Author-X-Name-First: Markus 
Author-X-Name-Last: Zimmer 
Title: The structure of the German economy 
Abstract:
 Exploiting the information contained in an economy's input-output matrix
 and using the novel approach developed by Fisher and Marshall (2011), we
 calculate Rybczynski effects and Stolper-Samuelson effects for Germany in
 2007. We show how sectoral output and factor remuneration react to
 exogenous changes of factor endowments and product prices, respectively.
 These calculations are implemented using two different models comprising
 one with labour and capital as the classical production factors and one
 where we introduce patent stock as an additional factor of production. In
 the former, we further differentiate between a scenario where all
 production factors are mobile and one with sector-specific capital. In the
 latter analysis, we measure the impact of innovation-targeting policy
 action for sectoral output. Positive Rybczynski effects of patents and
 high-skilled workers are strongest in knowledge-intensive sectors, while
 other sectors contract. The introduction of patents as a further
 production factor has only minor influence on the Rybczynski effects of
 other factors.
Journal: Applied Economics 
Pages: 3274-3283 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.927568 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927568 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3274-3283




Template-Type: ReDIF-Article 1.0
Author-Name: David Vera 
Author-X-Name-First: David 
Author-X-Name-Last: Vera 
Author-Name: Kazuki Onji 
Author-X-Name-First: Kazuki 
Author-X-Name-Last: Onji 
Author-Name: Prasanna Gai 
Author-X-Name-First: Prasanna 
Author-X-Name-Last: Gai 
Title: Are all financial crises created equal? Wholesale funding and two financial crises 
Abstract:
 We use financial information on banks from Asia, Europe, North America and
 Oceania to examine the role of wholesale funding on the transmission of
 financial crises to bank lending, as well as to study the response of
 financial institutions in different regions during the crises. We consider
 the role of wholesale funding during the Global Financial Crisis (GFC) and
 Asian Financial Crisis (AFC). Our results suggest that during the GFC,
 wholesale funding dependence had a negative effect on loans growth across
 regions, but with substantial regional heterogeneity. The growth of loans
 from financial institutions in Asia and Europe was consistently sensitive
 to wholesale funding dependence. Although wholesale funding did not play a
 significant role in the transmission mechanism of the AFC, a subsample of
 financial institutions in Asia, who depended more heavily on wholesale
 funding, experienced a faster loan growth and may have been able to better
 withstand the crisis.
Journal: Applied Economics 
Pages: 3284-3299 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.927569 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927569 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3284-3299




Template-Type: ReDIF-Article 1.0
Author-Name: Hatice Ozer Balli 
Author-X-Name-First: Hatice Ozer 
Author-X-Name-Last: Balli 
Author-Name: Christian J. Murray 
Author-X-Name-First: Christian J. 
Author-X-Name-Last: Murray 
Author-Name: David H. Papell 
Author-X-Name-First: David H. 
Author-X-Name-Last: Papell 
Title: Median-unbiased estimation of structural change models: an application to real exchange rate persistence 
Abstract:
 Measuring deviations from purchasing power parity has been the subject of
 extensive investigation. The most common practice in empirical research
 for measuring real exchange rate persistence is to estimate univariate
 autoregressive (AR) time series models and calculate the half-life,
 defined as the number of periods for a unit shock to a time series to
 decay by 50%. In the presence of structural change, there are two
 potential biases in the parameter estimates of AR models: (1) a downward
 small sample median-bias and (2) an upward bias, which occurs when
 structural change is present and ignored. We conduct a variety of Monte
 Carlo simulations and demonstrate that the existence of structural change
 causes a substantial increase in the small sample bias documented in
 Andrews (1993). We then propose an extension of median-unbiased
 estimation, which explicitly accounts for structural change, and apply
 these methods to estimate half-lives of several long-horizon real exchange
 rates analysed by Lothian and Taylor (1996) and Taylor (2002). The upward
 bias from neglecting structural change dominates the downward median-bias
 for these real exchange rates. When structural change is present and
 accounted for, the median-unbiased half-lives towards a changing mean
 decrease and the confidence intervals tighten.
Journal: Applied Economics 
Pages: 3300-3311 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.927570 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3300-3311




Template-Type: ReDIF-Article 1.0
Author-Name: Hernan A. Tejeda 
Author-X-Name-First: Hernan A. 
Author-X-Name-Last: Tejeda 
Author-Name: Barry K. Goodwin 
Author-X-Name-First: Barry K. 
Author-X-Name-Last: Goodwin 
Title: Dynamic multiproduct optimal hedging in the soybean complex - do time-varying correlations provide hedging improvements? 
Abstract:
 Optimal multiproduct time-varying hedge ratios are determined - for a
 soybean complex - and their risk-mitigating impact is contrasted over
 single-commodity time-varying and naive hedge ratios. A parsimonious
 regime-switching dynamic correlation model is employed, with the estimated
 dynamic correlation matrix among prices varying between two different
 levels, and the time-varying correlations being applied to the
 multiproduct setting. Findings obtained are three-fold. First, there is
 significant evidence that estimated simultaneous correlations among
 different commodities' prices (e.g. soybean spot and soybean meal futures)
 attain different values along the time series. Second, there is a
 substantial reduction in margin variance provided by the optimal
 multiproduct time-varying hedge ratios over single time-varying and naive
 hedge ratios, for both in- and out-of-sample data. Third, average optimal
 multiproduct time-varying hedge ratios for soybean and soybean meal (0.82
 and 0.74, respectively; for out-of-sample data) are significantly below
 the naive full hedge ratio, providing risk mitigation at lower costs.
Journal: Applied Economics 
Pages: 3312-3322 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.927571 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927571 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3312-3322




Template-Type: ReDIF-Article 1.0
Author-Name: Sandra Cavaco 
Author-X-Name-First: Sandra 
Author-X-Name-Last: Cavaco 
Author-Name: Patricia Crifo 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Crifo 
Title: CSR and financial performance: complementarity between environmental, social and business behaviours 
Abstract:
 This article analyses the interactions between various dimensions of
 corporate social responsibility (CSR) that mediate the relationship
 between CSR and financial performance. We hypothesize that the absence of
 consensus in the empirical literature on the CSR-financial performance
 relationship may be explained by the existence of synergies
 (complementarity) and trade-offs (substitutability) between the different
 CSR components. We investigate such relationship using a final unbalanced
 panel sample of 1094 observations (around 300 firms per year) from 15
 countries over the 2002-2007 period. Our results show that responsible
 behaviours towards employees (human resources dimension) and towards
 customers and suppliers (business behaviour dimension) appear as
 complementary inputs of financial performance, indicating mutual benefits
 and less conflict between those stakeholders. Conversely, responsible
 behaviours towards customers and suppliers and towards the environment
 appear as substitutable inputs of financial performance, suggesting more
 conflict between or over-investment towards those stakeholders.
Journal: Applied Economics 
Pages: 3323-3338 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.927572 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927572 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3323-3338




Template-Type: ReDIF-Article 1.0
Author-Name: D. Ribar 
Author-X-Name-First: D. 
Author-X-Name-Last: Ribar 
Author-Name: Christopher A. Swann 
Author-X-Name-First: Christopher A. 
Author-X-Name-Last: Swann 
Title: If at first you don't succeed: applying for and staying on the Supplemental Nutrition Assistance Program 
Abstract:
 We examine households' applications to and participation in the
 Supplemental Nutrition Assistance Program using administrative records
 from South Carolina. We model application resolutions with multinomial
 logit (MNL) specifications where the possible outcomes are acceptance,
 denial due to income ineligibility, denial due to a failure to provide
 sufficient information and denial due to other reasons. For cases with
 successful applications, we model the durations of participation spells
 using competing risk hazard specifications that distinguish among exits
 that result from missed recertifications, financial ineligibility,
 incomplete or missing information and other reasons. The application and
 hazard outcomes depend on past programme behaviour and observed
 characteristics. The results indicate that a household's application and
 participation history affect its subsequent application success and
 programme tenure.
Journal: Applied Economics 
Pages: 3339-3350 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.929623 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929623 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3339-3350




Template-Type: ReDIF-Article 1.0
Author-Name: Fadi Fawaz 
Author-X-Name-First: Fadi 
Author-X-Name-Last: Fawaz 
Author-Name: Masha Rahnama 
Author-X-Name-First: Masha 
Author-X-Name-Last: Rahnama 
Author-Name: Victor J. Valcarcel 
Author-X-Name-First: Victor J. 
Author-X-Name-Last: Valcarcel 
Title: A refinement of the relationship between economic growth and income inequality 
Abstract:
 There is mixed evidence in the literature of a clear relationship between
 income inequality and economic growth. Most of that work has focused
 almost exclusively on developed economies. In what we believe to be a
 first effort, our emphasis is solely on developing economics, which we
 classify as high-income and low-income developing countries (HIDC and
 LIDC). We make such distinction on theoretical and empirical grounds.
 Empirically, the World Bank has classified developing economies in this
 manner since 1978. The data in our sample are also supportive of such
 classifications. We provide theoretical scaffolding that uses asymmetric
 credit constraints as a premise for separating developing economies in
 such a way. We find strong evidence of a negative relationship between
 income inequality and economic growth in LIDC to be in stark contrast with
 a positive inequality-growth relationship for HIDC. Both correlations are
 statistically significant across multiple econometric specifications.
 Using international data from 1960 to 2010, this article explores the
 effect of income inequality on economic growth using dynamic panel
 technique, such as system generalized method of moments (GMM) that is
 believed to mitigate endogenous problem. These results are strikingly
 contrasting to the previous estimation results of Forbes (2000) displaying
 significant positive correlation between two variables in the short to
 medium term.
Journal: Applied Economics 
Pages: 3351-3361 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.929624 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929624 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3351-3361




Template-Type: ReDIF-Article 1.0
Author-Name: Zhaohua Wang 
Author-X-Name-First: Zhaohua 
Author-X-Name-Last: Wang 
Author-Name: Chao Feng 
Author-X-Name-First: Chao 
Author-X-Name-Last: Feng 
Title: The impact and economic cost of environmental regulation on energy utilization in China 
Abstract:
 This article utilizes three data envelopment analysis-based models: a no
 environmental regulation model, a weak environmental regulation model and
 a strong environmental regulation model to reveal the impact of
 environmental regulation on China's regional total-factor energy
 efficiency (TFEE) during the period of 2003-2010. To take a further step,
 these three models are adjusted for calculating the correspondingly
 macro-economic cost of environmental regulation. The estimation results
 show that at present, the level of China's environmental regulation is
 relatively low, and an enhancing of environmental regulation would lead to
 a sufficient increase of China's regional TFEE with an enormous economic
 cost as its price. That means in China, the nationwide environmental
 stress is high, and the regulation cost is very huge. Strengthening
 environmental regulation would inevitably have some negative influences on
 China's economy in the short run. Based on our findings, some
 corresponding policies are also proposed in this article.
Journal: Applied Economics 
Pages: 3362-3376 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.929629 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929629 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3362-3376




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana 
Author-X-Name-First: Luis Alberiko 
Author-X-Name-Last: Gil-Alana 
Author-Name: Carlos Barros 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Barros 
Author-Name: Nicolas Peypoch 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Peypoch 
Title: Long memory and fractional integration in the housing price series of London and Paris 
Abstract:
 This article deals with the analysis of house price indexes from a
 long-range dependence viewpoint. In particular, it estimates the
 fractional differencing parameter in the London and Paris house price
 series recognizing in some cases the potential seasonality and allowing
 for breaks in the data. Moreover, it analyses the stability of the
 parameters across the sample period examined. It is concluded that the
 series are nonstationary but mean reverting in some cases and very
 persistent in others. Policy implications are derived.
Journal: Applied Economics 
Pages: 3377-3388 
Issue: 27 
Volume: 46 
Year: 2014 
Month: 9 
X-DOI: 10.1080/00036846.2014.929630 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929630 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3377-3388




Template-Type: ReDIF-Article 1.0
Author-Name: Ji-Liang Shiu 
Author-X-Name-First: Ji-Liang 
Author-X-Name-Last: Shiu 
Title: Two separated effects of employer-provided health insurance on job mobility 
Abstract:
 We estimate the effect of employer-provided health insurance (EPHI) on job
 mobility via a dynamic model of joint employment and health insurance
 decision in the presence of uncertainty about wage rate and health status
 transitions. The model is based on a Markov decision process in which a
 hedonic wage approach provides an economic rationale for the different
 choices and health insurance serves as an input to the health production
 process. Including health transitions in the model helps us to understand
 how the availability of EPHI (positive job characteristic) and holding
 EPHI (the wage-health insurance trade-off) enter into the individuals'
 decisions. The model is estimated using the 1999-2000 Medical Expenditure
 Panel Survey panel 4, and the results show that the 'pure' effects of
 holding EPHI are negligible, the 'full' effects of EPHI are significant
 and the degrees of the inefficiency vary between 14% and 25% across
 different states.
Journal: Applied Economics 
Pages: 3389-3407 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.929625 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929625 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3389-3407




Template-Type: ReDIF-Article 1.0
Author-Name: F. Menla Ali 
Author-X-Name-First: F. 
Author-X-Name-Last: Menla Ali 
Author-Name: O. Dimitraki 
Author-X-Name-First: O. 
Author-X-Name-Last: Dimitraki 
Title: Military spending and economic growth in China: a regime-switching analysis 
Abstract:
 This article investigates the impact of military spending changes on
 economic growth in China over the period 1953 to 2010. Using two-state
 Markov-switching specifications, the results suggest that the relationship
 between military spending changes and economic growth is state dependent.
 Specifically, the results show that military spending changes affect the
 economic growth negatively during a slower growth-higher variance state,
 while positively within a faster growth-lower variance one. It is also
 demonstrated that military spending changes contain information about the
 growth transition probabilities. As a policy tool, the results indicate
 that increases in military spending can be detrimental to growth during
 slower growth-higher growth volatility periods.
Journal: Applied Economics 
Pages: 3408-3420 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.929626 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929626 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3408-3420




Template-Type: ReDIF-Article 1.0
Author-Name: Durba Chakrabarty 
Author-X-Name-First: Durba 
Author-X-Name-Last: Chakrabarty 
Author-Name: Levent Kutlu 
Author-X-Name-First: Levent 
Author-X-Name-Last: Kutlu 
Title: Competition and price dispersion in the airline markets 
Abstract:
 We use two ticket-level data sets on one-way domestic flights for the US
 airlines to examine the potentially nonlinear relationship between price
 dispersion and three forms of competition: inter-firm, inter-flight and
 frequency competitions. The linear relationship is rejected at any
 conventional significance levels. In particular, there is an S-shaped
 relationship between market concentration and price dispersion. This can
 be a reason for the mixed results in the literature. Roughly speaking, the
 inter-flight and frequency competitions have opposite effects on price
 dispersion. Finally, in general, the size of aircraft has a positive
 effect on price. However, for very large aircraft, the relationship
 becomes negative.
Journal: Applied Economics 
Pages: 3421-3436 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.931919 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.931919 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3421-3436




Template-Type: ReDIF-Article 1.0
Author-Name: Rafik Abdesselam 
Author-X-Name-First: Rafik 
Author-X-Name-Last: Abdesselam 
Author-Name: Jean Bonnet 
Author-X-Name-First: Jean 
Author-X-Name-Last: Bonnet 
Author-Name: Patricia Renou-Maissant 
Author-X-Name-First: Patricia 
Author-X-Name-Last: Renou-Maissant 
Title: Typology of the French regional development: revealing the <italic>refugee</italic> versus <italic>Schumpeter</italic> effects in new-firm start-ups 
Abstract:
 In this article, we analyse the relationships between unemployment rates
 and new-firm start-up rates in France. Using a quarterly data basis
 covering the period 1993 to 2011, we identify, thanks to data analysis
 methods, different classes that show different types of development among
 the French regions. For each of these classes, the existence of
 <italic>refugee/Schumpeter</italic> effects both in the short run and in
 the long run is revealed. At the national level, it appears that the
 <italic>refugee</italic> effect explains the dynamics of entrepreneurship
 in France over the period 2000 to 2011. Necessity is the key motivation
 for new French firms.
Journal: Applied Economics 
Pages: 3437-3451 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.931920 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.931920 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3437-3451




Template-Type: ReDIF-Article 1.0
Author-Name: Bruce T. Elmslie 
Author-X-Name-First: Bruce T. 
Author-X-Name-Last: Elmslie 
Author-Name: Edinaldo Tebaldi 
Author-X-Name-First: Edinaldo 
Author-X-Name-Last: Tebaldi 
Title: The determinants of marital happiness 
Abstract:
 This study contributes to the literature by providing an empirical
 analysis of the determinants of marital and general happiness. The
 empirical analysis is conducted using US data from the General Social
 Survey (GSS) and an Ordered Probit Model. We also attempt to overcome the
 endogeneity problem between marital happiness and infidelity using a
 recursive bivariate probit model. One of the advances of this study is to
 show that the determinants of marital happiness differ between men and
 women in interesting ways. While infidelity has similar effects for both
 sexes, we find that women have a detectable preference for a traditional
 division of labour within the household. In addition, social class,
 religion, age, children and income have differential effects between men
 and women. In particular, for marital happiness we find diminishing
 returns from household income for women and satiation for men. Hence, we
 find that most of the existing literature has left hidden important
 differences in the determinants of marital happiness between men and
 women.
Journal: Applied Economics 
Pages: 3452-3462 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.932047 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3452-3462




Template-Type: ReDIF-Article 1.0
Author-Name: Sangwon Suh 
Author-X-Name-First: Sangwon 
Author-X-Name-Last: Suh 
Author-Name: Wonho Song 
Author-X-Name-First: Wonho 
Author-X-Name-Last: Song 
Author-Name: Bong-Soo Lee 
Author-X-Name-First: Bong-Soo 
Author-X-Name-Last: Lee 
Title: A new method for forming asset pricing factors from firm characteristics 
Abstract:
 Commonly used asset pricing models do not successfully account for both
 time-series and cross-sectional variations of asset returns. In this
 article, we propose a new method for forming pricing factors that are
 intended to capture the time-series as well as the cross-sectional
 variations. The new pricing factors are constructed by utilizing a set of
 basis assets that are associated with firm characteristics. Compared with
 popular extant asset pricing models, empirical results show that the new
 model can parsimoniously and successfully account for both time-series and
 cross-sectional variations of asset returns and significantly improve
 model performances in terms of various measures: the Jensen's &alpha;,
 root mean squared &alpha;, time series regression <inline-formula
 id="ILM0001"><inline-graphic xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_932049_ilm0001.gif"/></inline-formula>, cross-sectional
 regression <inline-formula id="ILM0002"><inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_932049_ilm0002.gif"/></inline-formula> and the
 HJ-distance measure.
Journal: Applied Economics 
Pages: 3463-3482 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.932049 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932049 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3463-3482




Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula 
Author-X-Name-First: Richard J. 
Author-X-Name-Last: Cebula 
Title: An empirical investigation into the impact of US federal government budget deficits on the real interest rate yield on intermediate-term treasury issues, 1972-2012 
Abstract:
 This study provides new empirical evidence on the impact of the federal
 budget deficit on the <italic>real</italic> interest rate yields on
 intermediate-term debt issues of the US Treasury, represented herein by
 the <italic>ex post</italic> real interest rate yields on 3-year Treasury
 notes and 7-year Treasury notes, two interest rate measures that have
 received essentially no attention in the economics and finance literature
 in recent years. This study is couched within a loanable funds model that
 includes two <italic>ex post</italic> real interest rate yields, the
 monetary base as a per cent of GDP, the change in per capita real GDP, net
 financial capital inflows as a per cent of GDP and the budget deficit as a
 per cent of GDP. This study uses annual data for the study period 1972 to
 2012, a time period that includes 'quantitative easing' monetary policies
 by the Federal Reserve. Two-stage least squares estimations reveal that
 the federal budget deficit, expressed as a per cent of GDP, exercised a
 positive and statistically significant impact on the <italic>ex
 post</italic> real interest rate yields on both 3-year and 7-year Treasury
 notes, even after allowing for quantitative easing and other factors. The
 study also considers the time period 1980 to 2012 and offers simple
 robustness testing.
Journal: Applied Economics 
Pages: 3483-3493 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.932050 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932050 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3483-3493




Template-Type: ReDIF-Article 1.0
Author-Name: Ting Zhang 
Author-X-Name-First: Ting 
Author-X-Name-Last: Zhang 
Author-Name: Dan Gerlowski 
Author-X-Name-First: Dan 
Author-X-Name-Last: Gerlowski 
Author-Name: Deborah Ford 
Author-X-Name-First: Deborah 
Author-X-Name-Last: Ford 
Title: Housing price variability: national and local impacts 
Abstract:
 This article examines the influence of national and local forces on
 housing prices in 20 local US real estate markets during the recent
 housing price run-up and decline. We use reduced-form panel data
 fixed-effects models with robust SEs to determine the impact of national
 and local effects on housing prices in 20 US cities across time. A
 national home price index and mortgage rate are used to measure national
 impacts on the local markets. A mix of socio-economic variables estimates
 local impacts. We find no results indicating that national trends lack
 relevance in local markets; however, we find wide support for the
 additional inclusion of local socio-economic factors in all markets. The
 findings are consistent with an environment in which national polices and
 trends influence all markets; however local policymakers and investors can
 continue to expect geographic differences in market outcomes.
Journal: Applied Economics 
Pages: 3494-3502 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.929628 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929628 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3494-3502




Template-Type: ReDIF-Article 1.0
Author-Name: Kamila Cygan-Rehm 
Author-X-Name-First: Kamila 
Author-X-Name-Last: Cygan-Rehm 
Author-Name: Regina T. Riphahn 
Author-X-Name-First: Regina T. 
Author-X-Name-Last: Riphahn 
Title: Teenage pregnancies and births in Germany: patterns and developments 
Abstract:
 We study the development of teenage fertility in East and West Germany
 using data from the German Socioeconomic Panel and from the German
 Mikrozensus. Following the international literature we derive hypotheses
 on the patterns of teenage fertility and test whether they are relevant to
 the German case. We find that teenage fertility is associated with teenage
 age and education, with the income of the teenager's family, with
 migration status, residence in East Germany and aggregate unemployment.
 Our evidence supports counter-cyclical teenage fertility.
Journal: Applied Economics 
Pages: 3503-3522 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.932045 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932045 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3503-3522




Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Ono 
Author-X-Name-First: Hiroshi 
Author-X-Name-Last: Ono 
Title: The government expenditure-economic growth relation in Japan: an analysis by using the ADL test for threshold cointegration 
Abstract:
 Based on annual data from Japan for the period 1960 to 2010, we
 investigate the government expenditure-economic growth relation in Japan
 by using the autoregressive distributed lag test for threshold
 cointegration developed by Li and Lee (2010). In particular, we evaluate
 the validity of Wagner's view and the Keynesian view in the case of Japan.
 The empirical results presented herein indicate that of these two
 classical economics perspectives, only Wagner's view holds for Japan. The
 findings also demonstrate that the adjustment process towards its long-run
 equilibrium is asymmetric.
Journal: Applied Economics 
Pages: 3523-3531 
Issue: 28 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.932046 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932046 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3523-3531




Template-Type: ReDIF-Article 1.0
Author-Name: J. D. Pitts 
Author-X-Name-First: J. D. 
Author-X-Name-Last: Pitts 
Author-Name: S. Orozco-Aleman 
Author-X-Name-First: S. 
Author-X-Name-Last: Orozco-Aleman 
Author-Name: J. Rezek 
Author-X-Name-First: J. 
Author-X-Name-Last: Rezek 
Title: The role of supervisors in the determination of wages and wage gaps 
Abstract:
 This article considers labour market discrimination by supervisors as a
 potential contributor to racial and gender wage gaps. Empirical analysis
 reveals evidence that all workers, except Hispanic males, earn
 significantly higher hourly wages when working for a supervisor of the
 same race and sex as themselves. Furthermore, the results suggest that sex
 has a larger impact on wages than race for workers with white supervisors,
 while race has a larger impact on wages than sex for workers with minority
 supervisors. Based on past research, we theorize that the degree of labour
 discrimination workers face may also be dependent upon the location and
 size of the firm in which they are employed. However, decomposing the
 samples by firm location and size suggests that these two factors cannot
 adequately explain the observed matched supervisor--worker wage effects,
 which supports the notion that these wage effects are largely driven by
 factors other than supervisor discrimination.
Journal: Applied Economics 
Pages: 3533-3547 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.934430 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934430 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3533-3547




Template-Type: ReDIF-Article 1.0
Author-Name: William Gatt 
Author-X-Name-First: William 
Author-X-Name-Last: Gatt 
Author-Name: Joseph Falzon 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Falzon 
Title: British tourism demand elasticities in Mediterranean countries 
Abstract:
 We use the almost ideal demand system (AIDS) model developed by Deaton and
 Muellbauer (1980) to estimate tourism demand elasticities for a number of
 Mediterranean countries (Cyprus, Greece, Italy, Malta, Portugal, Spain and
 Turkey) in relation to tourists originating from the United Kingdom during
 the period 1963 to 2009. Using the restrictions imposed by theory, we find
 that the model is able to explain developments in market shares reasonably
 well, despite the large and at times sudden changes in market shares over
 the sample period. Our share estimates indicate that while Spain and
 Portugal managed to keep a stable market share over time, Malta and
 especially Italy lost market share to Cyprus, Greece and Turkey. Overall,
 we observe that Italy and Spain have the lowest own-price elasticities,
 whereas Greece, Portugal, Spain and Turkey are expenditure inelastic
 holiday destinations. We also improve over the traditional treatment of
 the AIDS model in the literature by studying the stability of the
 estimated elasticities over time using recursive estimates. The results
 indicate that some elasticities are indeed time varying and highlight the
 potential pitfalls of assuming fixed and stable elasticities over a long
 period, as is customary in the tourism literature.
Journal: Applied Economics 
Pages: 3548-3561 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.934432 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934432 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3548-3561




Template-Type: ReDIF-Article 1.0
Author-Name: C. Alexandrakis 
Author-X-Name-First: C. 
Author-X-Name-Last: Alexandrakis 
Title: Sectoral differences in the use of information technology and matching efficiency in the US labour market 
Abstract:
 The present study examines how the heterogeneity of use of information
 technology in production affects the probability that an unemployed worker
 will be matched with a vacancy. Using US time series from 1967 to 2007, I
 construct measures of dispersion of the stocks of software and hardware
 per worker across 13 industries. The measures exhibit three waves whose
 timing roughly corresponds to the diffusion of mainframe computers in the
 1960s and 1970s, personal computers in the 1980s and the Internet in the
 late 1990s. After controlling for other influences, I find that the
 probability of transitioning from unemployment to employment responds
 negatively to an increase in either measure. The results imply that by
 enhancing technical heterogeneity, the diffusion of a new technology may
 suppress the job finding rate.
Journal: Applied Economics 
Pages: 3562-3571 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.934433 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934433 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3562-3571




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Pino 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: Pino 
Author-Name: Ariel Soto 
Author-X-Name-First: Ariel 
Author-X-Name-Last: Soto 
Title: Analysis of wage flexibility across the Euro Area: evidence from the process of convergence of the labour income share ratio 
Abstract:
 This article analyses wage flexibility as a factor in the unemployment
 rate across 12 Euro Area countries. We use extensive evidence pertaining
 to the countercyclical behaviour of the labour income share ratio to
 estimate its equilibrium value in the long run. This measure is calculated
 using a hybrid New Keynesian Phillips curve. Additionally, by using
 spatial econometrics, we can incorporate into the study the
 interdependence in the inflation among the countries. As a result, we
 identify countries that might see an improvement in their employment rates
 by improving their wage flexibility. We also identify countries with high
 unemployment that is not a consequence of a lack of wage flexibility.
Journal: Applied Economics 
Pages: 3572-3580 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.934434 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934434 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3572-3580




Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig 
Author-X-Name-First: Jochen 
Author-X-Name-Last: Hartwig 
Title: Testing Okun&#x2019;s law with Swiss industry data 
Abstract:
 Okun&#x2019;s law postulates a stable relationship between quarterly
 output growth and changes in (un)employment. This proposition has so far
 been tested with macroeconomic data at the highest level of aggregation.
 The article goes beyond that in extending the analysis to industry data
 from Switzerland, applying a method suggested by the International
 Monetary Fund. Another focus is on whether expansions in production have
 become more &#x2018;jobless&#x2019; over the most recent business cycle
 compared to earlier ones. This does not seem to be the case in
 Switzerland, except in the construction industry.
Journal: Applied Economics 
Pages: 3581-3590 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.934435 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934435 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3581-3590




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Author-Name: Peter Wanke 
Author-X-Name-First: Peter 
Author-X-Name-Last: Wanke 
Title: Insurance companies in Mozambique: a two-stage DEA and neural networks on efficiency and capacity slacks 
Abstract:
 This article analyses the efficiency of Mozambique insurance companies
 using a DEA model. Two DEA models are used and a bootstrap approach
 adopted. Furthermore, the efficiency scores are predicted based on neural
 networks. The results reveal that Mozambique insurance companies&#x2019;
 output-increasing potentials are severely constrained, particularly in
 terms of the ceded reinsurance increasing potentials. Policy implications
 are derived.
Journal: Applied Economics 
Pages: 3591-3600 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.934436 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934436 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3591-3600




Template-Type: ReDIF-Article 1.0
Author-Name: Atsuyuki Kato 
Author-X-Name-First: Atsuyuki 
Author-X-Name-Last: Kato 
Author-Name: Naomi Kodama 
Author-X-Name-First: Naomi 
Author-X-Name-Last: Kodama 
Title: Markups, productivity and external market development of the service SMEs 
Abstract:
 During the last decade, economists and policy makers have extensively
 discussed what types of firms can exploit external markets by exporting
 and what happens to domestic firms if external competitors penetrate into
 the home market. Although both theoretical and empirical studies have been
 dedicated to these issues, few have been carried out for the service
 sector. Since the service sector accounts for the lion&#x2019;s share of
 GDP, the lack of those studies indicates that a large part of the actual
 economy still remains veiled. Our study fills this gap. We examine whether
 or not the Melitz and Ottaviano (2008) model remains satisfied in the
 service sector, using data from Japanese SMEs. From our analysis, we
 confirm that larger market sizes are associated with higher productivity
 levels. On the other hand, firms with higher markups tend to develop their
 business in smaller markets, conditional of the simultaneity between
 production and consumption. These results reveal that further productivity
 growth in the service sector also requires markets to be larger and more
 integrated. In addition, the markup levels become lower in those markets.
Journal: Applied Economics 
Pages: 3601-3608 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.937033 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937033 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3601-3608




Template-Type: ReDIF-Article 1.0
Author-Name: Naiwei Chen 
Author-X-Name-First: Naiwei 
Author-X-Name-Last: Chen 
Author-Name: E-N Hsiao 
Author-X-Name-First: E-N 
Author-X-Name-Last: Hsiao 
Title: Insider ownership and financial flexibility 
Abstract:
 This study examines the cash flow sensitivity of external financing
 (financial flexibility (FF)) of firms from the perspective of the agency
 by focusing on whether and how insider ownership has a modifying effect on
 the FF of firms. Given the documented relationship between corporate
 governance and cost of external financing, insider ownership, an important
 proxy of corporate governance, should affect FF <italic>via</italic> the
 agency cost channel. A review of the US nonfinancial firms from 1992 to
 2009 indicates that insider ownership aids in determining the FF of firms.
 More specifically, results indicate the existence of optimal insider
 ownership, and any deviation from it causes FF to decrease. In addition,
 FF is higher when CEO ownership is lower (>0.08%) and this phenomenon is
 more pronounced for financially unconstrained firms. Furthermore, FF is
 higher when non-CEO insider ownership is in the middle range (0.12--0.43%)
 for financially constrained firms, whereas non-CEO insider ownership has
 minimal impact on FF for unconstrained firms.
Journal: Applied Economics 
Pages: 3609-3629 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.937035 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937035 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3609-3629




Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale 
Author-X-Name-First: Tony 
Author-X-Name-Last: Caporale 
Author-Name: Marc Poitras 
Author-X-Name-First: Marc 
Author-X-Name-Last: Poitras 
Title: Voter turnout in US presidential elections: does Carville&#x2019;s law explain the time series? 
Abstract:
 We estimate a time series model of voter turnout for 34 US presidential
 elections, 1880--2012. Employing a variety of econometric techniques, our
 major results are as follows. (1) A negative and significant structural
 shift in voter turnout occurs in 1972 and is too large to be explained by
 the lowering of the voting age. (2) The 1972 shift is the only
 statistically significant structural shift to occur since the first decade
 of the twentieth century. (3) Short-term macroeconomic conditions
 significantly impact turnout, with unemployment having a positive effect.
 (4) Turnout in recent presidential elections has not deviated
 significantly from the post-1972 norm. (5) Turnout is positively related
 to the expected closeness of the election outcome, but contrary to some
 theoretical predictions, closeness exhibits no trend over time.
Journal: Applied Economics 
Pages: 3630-3638 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.937037 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937037 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3630-3638




Template-Type: ReDIF-Article 1.0
Author-Name: Jiao Zhang 
Author-X-Name-First: Jiao 
Author-X-Name-Last: Zhang 
Author-Name: Qingcheng Zeng 
Author-X-Name-First: Qingcheng 
Author-X-Name-Last: Zeng 
Author-Name: Xiaofeng Zhao 
Author-X-Name-First: Xiaofeng 
Author-X-Name-Last: Zhao 
Title: Forecasting spot freight rates based on forward freight agreement and time charter contract 
Abstract:
 In this article, the lead--lag relationship in freight rates between spot
 and forward markets and between spot and time charter (TC) markets was
 investigated. A hybrid forecasting method for spot freight rates was
 proposed based on the price discovery functions of the freight forward
 agreement (FFA) and the TC contract. VECM-based models were developed to
 analyse the relation between spot rates and FFA and TC rates. Empirical
 results indicate that cointegration does exist between spot and FFA rates
 and between spot and TC rates. Furthermore, while both FFA and TC rates
 are helpful in forecasting spot freight rates, the integration of the two
 can further improve the forecasting performance of spot freight rates.
Journal: Applied Economics 
Pages: 3639-3648 
Issue: 29 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.937038 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3639-3648




Template-Type: ReDIF-Article 1.0
Author-Name: Marina-Selini Katsaiti 
Author-X-Name-First: Marina-Selini 
Author-X-Name-Last: Katsaiti 
Author-Name: Amany A. El Anshasy 
Author-X-Name-First: Amany A. 
Author-X-Name-Last: El Anshasy 
Title: On the determinants of obesity: evidence from the UAE 
Abstract:
 This article investigates the possible determinants of being overweight
 and obese in the United Arab Emirates (UAE), controlling for age and
 education status. We use a novel dataset constructed from survey responses
 of university undergraduate students. Using OLS, logistic and ordered
 logistic regressions, we find that male, affluent and nonnational students
 face a higher risk of being obese (or overweight). The results also show
 that cultural and geographical factors interact with some behavioural
 aspects related to lifestyle in determining weight status. Students
 originating from other Middle East and North Africa countries exhibit
 higher body mass index (BMI) and odds of being obese with higher frequency
 of eating out and more computer use. Unexpectedly, fast food consumption
 and lack of exercise do not seem to contribute to higher risks of being
 overweight/obese.
Journal: Applied Economics 
Pages: 3649-3658 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.934431 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934431 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3649-3658




Template-Type: ReDIF-Article 1.0
Author-Name: Ainura Tursunalieva 
Author-X-Name-First: Ainura 
Author-X-Name-Last: Tursunalieva 
Author-Name: Param Silvapulle 
Author-X-Name-First: Param 
Author-X-Name-Last: Silvapulle 
Title: A semi-parametric approach to estimating the operational risk and Expected Shortfall 
Abstract:
 In this article, we propose improvements to the peak-over-threshold (POT)
 method and apply this improved method for modelling US business
 operational losses and estimating operational risks (ORs). In the widely
 used traditional POT method, the generalized Pareto distribution (GPD) is
 fitted to severity losses, while an empirical distribution is fitted to
 small to medium losses. Then, the Expected Loss and the 99.9% operational
 value-at-risk (OpVaR) are estimated. Additionally, the Expected Shortfall
 (ES) - a coherent risk measure - is estimated in this article as an
 alternative to OpVaR. These risk measures constitute the levels of
 regulatory and economic capitals to cover risks. With the improved POT
 method, the risks can be estimated more accurately than with the
 traditional POT method. The results indicate that the OpVaR are much lower
 than the ES and that the larger the tail losses the greater the difference
 between these two risk measures. Our findings imply that the ES would
 provide higher levels of capitals to cover risks than would the OpVaR,
 particularly during crises, and they have implications for the efficient
 OR management and regulators.
Journal: Applied Economics 
Pages: 3659-3672 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.937034 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937034 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3659-3672




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Grabowski 
Author-X-Name-First: Richard 
Author-X-Name-Last: Grabowski 
Author-Name: Sharmistha Self 
Author-X-Name-First: Sharmistha 
Author-X-Name-Last: Self 
Title: Some preliminary evidence of the impact of the 2008-2009 financial crisis on women 
Abstract:
 Beginning in late 2007 and into 2008, a financial crisis originating in
 the United States spread throughout the world. This article seeks to
 present preliminary evidence of the impact of this crisis on female labour
 force participation and the proportion of females working in
 nonagricultural sectors. A panel data set involving 171 countries is
 utilized, and the results indicate that the financial crisis led to
 increases in female labour force participation as well as the proportion
 of females working in the nonagricultural sector. There are differences in
 impact for countries of various income levels (low, middle and high). In
 addition, female political power has also led to increases in the economic
 participation of females.
Journal: Applied Economics 
Pages: 3673-3681 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.937039 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3673-3681




Template-Type: ReDIF-Article 1.0
Author-Name: N. Antonakakis 
Author-X-Name-First: N. 
Author-X-Name-Last: Antonakakis 
Author-Name: H. Badinger 
Author-X-Name-First: H. 
Author-X-Name-Last: Badinger 
Title: International business cycle spillovers since the 1870s 
Abstract:
 This article considers the evolution of international business cycle
 interdependencies among 27 developed and developing countries since the
 beginning of 1870s, utilizing the generalized vector autoregressive
 (VAR)-based spillover index of Diebold and Yilmaz (2012), which allows the
 construction of a time-varying measure of business cycle spillovers. We
 find that, on average, 65% of the forecast error variance of the 27
 countries' business cycle shocks is due to international spillovers.
 However, the magnitude of international business cycle spillovers varies
 considerably over time. There is a clear increasing trend since the end of
 World War II and until the mid-1980s. After that, international business
 cycle interdependencies declined during the period that was dubbed the
 Great Moderation and stabilized around the beginning of the twenty-first
 century. During the Great Recession of 2008-2009, international business
 cycle spillovers increased to unprecedented levels. Finally, developed
 countries are consistently ranked as net transmitters of cyclical shocks
 to developing counties throughout the sample.
Journal: Applied Economics 
Pages: 3682-3694 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.937040 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937040 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3682-3694




Template-Type: ReDIF-Article 1.0
Author-Name: Zhenxu Tong 
Author-X-Name-First: Zhenxu 
Author-X-Name-Last: Tong 
Title: Deviations from optimal corporate cash holdings and the valuation from a shareholder's perspective 
Abstract:
 The trade-off theory of corporate cash holdings predicts that there is an
 optimal level of cash. We test the trade-off theory by investigating the
 relation between deviations from optimal cash holdings and the valuation
 of cash from a shareholder's perspective. We decompose corporate cash
 holdings into the optimal level of cash and the deviations from the
 optimum. We find that the marginal value of cash for shareholders is
 higher when a change in cash moves corporate cash holdings towards the
 optimal level and that this relationship holds for both the above-optimal
 deviations and the below-optimal deviations. We conclude that the results
 are consistent with the prediction of the trade-off theory of corporate
 cash holdings.
Journal: Applied Economics 
Pages: 3695-3707 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.939374 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939374 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3695-3707




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Omer 
Author-X-Name-First: Muhammad 
Author-X-Name-Last: Omer 
Author-Name: Jakob de Haan 
Author-X-Name-First: Jakob 
Author-X-Name-Last: de Haan 
Author-Name: Bert Scholtens 
Author-X-Name-First: Bert 
Author-X-Name-Last: Scholtens 
Title: Testing uncovered interest rate parity using LIBOR 
Abstract:
 We test uncovered interest rate parity (UIP) using London InterBank
 Offered Rate (LIBOR) interest rates for a wide range of maturities. In
 contrast to other markets, LIBOR markets have minimal frictions. Whereas
 most previous studies reject UIP, we find that UIP holds for several
 short-term LIBOR maturities using block bootstrap panel unit root tests
 suggested by Palm <italic>et al</italic>. (2011) and cointegration
 techniques by Westerlund (2007). Furthermore, the estimation results
 suggest that the speed of adjustment to the long-run equilibrium
 marginally differs across the maturity of the underlying instrument, thus
 supporting the efficient market hypothesis.
Journal: Applied Economics 
Pages: 3708-3723 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.939375 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939375 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3708-3723




Template-Type: ReDIF-Article 1.0
Author-Name: Pilar Poncela 
Author-X-Name-First: Pilar 
Author-X-Name-Last: Poncela 
Author-Name: Eva Senra 
Author-X-Name-First: Eva 
Author-X-Name-Last: Senra 
Author-Name: Lya Paola Sierra 
Author-X-Name-First: Lya Paola 
Author-X-Name-Last: Sierra 
Title: Common dynamics of nonenergy commodity prices and their relation to uncertainty 
Abstract:
 The purpose of this article is to improve the empirical evidence on
 commodity prices in various dimensions. First, we attempt to identify the
 extent of comovements in 44 monthly nonenergy commodity price series in
 order to ascertain whether the increase in comovement is a recent term
 phenomenon. Second, we attempt to determine the role of uncertainty in
 determining comovements among nonenergy prices in the short run. We
 diagnose the overall comovement using a dynamic factor model estimated by
 principal components. A factor-augmented vector autoregressive approach is
 used to assess the relationship of fundamentals, financial and uncertainty
 variables with the comovement in commodity prices. We find a greater
 synchronization among raw materials since December 2003. Since that date,
 uncertainty has played an important role in determining short-run
 fluctuations in nonenergy raw material prices.
Journal: Applied Economics 
Pages: 3724-3735 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.939377 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939377 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3724-3735




Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Antonio Lucena Aiube 
Author-X-Name-First: Fernando Antonio Lucena 
Author-X-Name-Last: Aiube 
Author-Name: Carlos Patricio Samanez 
Author-X-Name-First: Carlos Patricio 
Author-X-Name-Last: Samanez 
Title: On the comparison of Schwartz and Smith's two- and three-factor models on commodity prices 
Abstract:
 Since Schwartz and Smith (2000) published their study on two-factor model
 on commodity prices, many studies have used this model and others have
 extended it. The authors also proposed the three-factor model due to the
 poor fitting of the two-factor one on long-term futures prices. At that
 time the authors had only long-term prices from a private source to
 calibrate, test and compare these models. No public data on long-term
 future contracts were available. On the other hand, during the last decade
 the commodity prices soared as did the liquidity of long-term contracts.
 This means that the interest of the agents in the management of their risk
 on long-term positions increased the same way and this is the motivation
 for this study. In this article, we revisit the comparison between two-
 and three-factor models using public data for short- and long-term
 contracts (we use up to the 67-month-ahead contract). We also provide a
 detailed derivation of the three-factor model differently from that of the
 original article. Following the original article of Schwartz and Smith, we
 used oil futures prices traded on the New York Mercantile Exchange to
 calibrate the model. The results show a better fit of the three-factor
 model for the term structure of prices and volatilities mainly for long
 maturities contracts, while the two-factor model in most portions of the
 curve underestimates the risk premiums. This type of analysis is important
 not only for daily agents negotiating the physical commodities through
 long-term contracts but also for investment decisions on development of
 real projects.
Journal: Applied Economics 
Pages: 3736-3749 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.939409 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939409 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3736-3749




Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Cullmann 
Author-X-Name-First: Astrid 
Author-X-Name-Last: Cullmann 
Author-Name: Petra Zloczysti 
Author-X-Name-First: Petra 
Author-X-Name-Last: Zloczysti 
Title: R&D efficiency and heterogeneity - a latent class application for the OECD 
Abstract:
 Expenditures devoted to research and development (R&D) are scarce and thus
 need to be used as efficiently as possible given the financial constraints
 countries are facing. This article assesses the relative efficiency of R&D
 expenditures for 26 OECD member countries and two nonmember countries. As
 countries differ in their national innovation systems and states of
 economic development and industrialization, e.g. transition economies in
 Eastern Europe versus Asian countries versus Anglo-Saxon countries, the
 measurement of R&D efficiency needs to consider differences in the
 technology of knowledge production. By means of a latent class model for
 stochastic frontiers, we relax the assumption of a homogeneous technology
 frontier and model technological differences in knowledge production among
 countries. Empirical evidence suggests the existence of different classes
 stressing the importance of accounting for countries' disparities within
 R&D efficiency analysis.
Journal: Applied Economics 
Pages: 3750-3762 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.939410 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939410 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3750-3762




Template-Type: ReDIF-Article 1.0
Author-Name: Itthipong Mahathanaseth 
Author-X-Name-First: Itthipong 
Author-X-Name-Last: Mahathanaseth 
Author-Name: Loren W. Tauer 
Author-X-Name-First: Loren W. 
Author-X-Name-Last: Tauer 
Title: Performance of Thailand banks after the 1997 East Asian financial crisis 
Abstract:
 The performance of commercial banks and government-owned specialized banks
 in Thailand is estimated after the 1997 East Asian financial crisis.
 Commercial banks exhibit increasing returns to scale, whereas
 government-owned specialized banks exhibit decreasing returns to scale,
 implying further increases in bank size and market concentration in the
 commercial bank sector but not for government specialized banks. Cost
 inefficiency varies by bank and is a function of the ratio of
 nonperforming loans (NPLs) to total loans, equity to total assets and
 liquid assets to total assets, as well as the number of branches. On
 average, banks with fewer NPLs, that are well capitalized and with
 adequate liquidity are efficient. Thus, stricter rules to regulate credit
 risk management and ensure capital and liquidity adequacy would enhance
 efficiency in the banking sector. Although estimated input
 substitutability appears to be low, labour and loanable fund are
 substitutes. However, labour and physical capital as well as physical and
 loanable funds are complements in commercial banks. All the three inputs
 of labour, physical capital and loanable funds are substitutes for the
 government specialized banks.
Journal: Applied Economics 
Pages: 3763-3776 
Issue: 30 
Volume: 46 
Year: 2014 
Month: 10 
X-DOI: 10.1080/00036846.2014.937036 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937036 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3763-3776




Template-Type: ReDIF-Article 1.0
Author-Name: Berna Kirkulak Uludag 
Author-X-Name-First: Berna 
Author-X-Name-Last: Kirkulak Uludag 
Author-Name: Zorikto Lkhamazhapov 
Author-X-Name-First: Zorikto 
Author-X-Name-Last: Lkhamazhapov 
Title: Long memory and structural breaks in the returns and volatility of gold: evidence from Turkey 
Abstract:
				 This article examines the long-memory
 properties and structural breaks in spot and futures gold returns and
 volatility in Turkey. The data cover the period from 2008 through 2013 in
 which gold prices hit an all-time high. ARFIMA-FIGARCH model provides
 evidence of dual long memory in spot series and a lack of long-memory
 property in futures returns. Anti-persistence in spot returns is
 indicative of an overreaction of gold prices to new information, thus
 disconfirming the weak form of market efficiency. The findings further
 provide evidence of one structural break, which is associated with
 correction in the gold prices during the post-global financial crisis. The
 analyses suggest that the long memory is true, not spurious. This implies
 that long memory is a feature of the data instead of an outcome of
 structural changes.		      
Journal: Applied Economics 
Pages: 3777-3787 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.929627 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929627 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3777-3787




Template-Type: ReDIF-Article 1.0
Author-Name: David J. Mayston 
Author-X-Name-First: David J. 
Author-X-Name-Last: Mayston 
Title: Effectiveness analysis of quality achievements for university Departments of Economics 
Abstract:
				 When university Departments are under
 pressure to improve the assessed quality of their research and teaching in
 several different directions simultaneously, questions arise as to the
 nature of the corresponding feasible set and the shape of its frontier.
 When quality is judged by reference to grades whose precise thresholds are
 subject to stochastic uncertainties, both convex and nonconvex regions of
 the frontier of the feasible set may be present. The appropriateness of
 deploying standard empirical techniques of frontier estimation is then
 called into question in evaluating the relative effectiveness of
 individual Departments and their scope for improvements. The empirical
 results of frontier estimation, here applied to UK university Departments
 of Economics, are shown to be sensitive to the choice of nonparametric
 frontier technique deployed, with Free Disposal Hull analysis providing an
 alternative estimation technique that can allow for both convex and
 nonconvex regions of the possibility frontier. Issues of the endogeneity
 of the resources available to Departments are also raised in this applied
 context, with a need to incorporate into the effectiveness analysis the
 potential feedback effects of improved research and teaching quality upon
 the achievement possibility set.			
Journal: Applied Economics 
Pages: 3788-3797 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.939373 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3788-3797




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Serrano-Cinca 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Serrano-Cinca 
Author-Name: Yolanda Fuertes-Call鮠
Author-X-Name-First: Yolanda 
Author-X-Name-Last: Fuertes-Call鮠
Author-Name: Bego񡠇uti鲲ez-Nieto 
Author-X-Name-First: Bego񡠍
Author-X-Name-Last: Guti鲲ez-Nieto 
Author-Name: Beatriz Cuellar-Fernᮤez 
Author-X-Name-First: Beatriz 
Author-X-Name-Last: Cuellar-Fernᮤez 
Title: Path modelling to bankruptcy: causes and symptoms of the banking crisis 
Abstract:
				 This article studies the bankruptcy of US
 banks since 2009. It first analyses the financial symptoms that precede
 bankruptcy, such as low profitability, insufficient revenue or low
 solvency ratios. It also goes into the causes of these symptoms. It poses
 several hypotheses on causes of failure, such as loan growth (some of them
 risky), specialization (in this case concentration in real estate) and the
 pursuit of a turnover-driven strategy neglecting margin. It presents and
 tests a structural equation modelling based on partial least squares path
 modelling (PLS-PM) and logistic regression. Results show that, 5 years
 before the crisis, failed banks had, compared to solvent banks, the
 following: higher loan growth, higher concentration on real estate loans,
 higher risk ratios, higher turnover, but lower margins. A relationship is
 found between symptoms and causes. Failed banks present a significant
 relationship between the percentage of real estate loans and risk. This
 relationship is negative in excellent banks, confirming that they
 allocated less real estate loans with a high quality. Nonfailed banks
 compensated increases in risk by strengthening their core capital.	    
Journal: Applied Economics 
Pages: 3798-3811 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.943882 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943882 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3798-3811




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chih Lin 
Author-X-Name-First: Chien-Chih 
Author-X-Name-Last: Lin 
Title: Option smiling when investors' estimates of asset volatility disagree 
Abstract:
				 This study sheds light on why
 heterogeneous beliefs in volatility manifest the smile effect of options
 and how the degree of belief disagreement influences option-implied
 volatility. It is found that when investors' level of heterogeneous
 beliefs increases, agents who over estimate volatility raise their
 subjective probability about those outer dividend states and hence
 increase more consumption to those states. As a result, an increase of
 consumption causes a decrease of their marginal rate of transformation in
 outer states. The raising subjective probability increases the prices of
 outer states, while the lower marginal rate of transformation decreases
 the prices of that. However, the influence of the former dominates the
 latter, causing a fatter tail of the state-price density. As a
 consequence, the values increase for those call options with high strike
 prices and put options with low strike prices, leading to a U-shaped
 implied volatility and hence causes a smell effect.		      
Journal: Applied Economics 
Pages: 3812-3827 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.943883 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943883 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3812-3827




Template-Type: ReDIF-Article 1.0
Author-Name: Cheuk Yin Ho 
Author-X-Name-First: Cheuk Yin 
Author-X-Name-Last: Ho 
Title: Can the baseline search and matching model quantitatively explain Okun's law? 
Abstract:
				 Okun's Law is an empirically observed,
 negative relationship between changes in an economy's unemployment rate
 and its growth rate of output. The baseline search and matching model with
 stochastic labour productivity fails to match the Okun's coefficient,
 because it generates a too low unemployment volatility and a too high
 correlation between labour productivity and unemployment. The model is
 capable of matching the coefficient if it is extended with an addition of
 employment separation shocks plus a high calibrated value of nonmarket
 activities. This article also shows that changes in the stochastic
 properties of exogenous shocks could explain changes in the Okun's
 coefficient in the Great Moderation (1984-2007).		     
Journal: Applied Economics 
Pages: 3828-3835 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.943884 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943884 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3828-3835




Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula 
Author-X-Name-First: Richard J. 
Author-X-Name-Last: Cebula 
Author-Name: J. R. Clark 
Author-X-Name-First: J. R. 
Author-X-Name-Last: Clark 
Title: The effects of economic freedom, regulatory quality and taxation on the level of per capita real income: a preliminary analysis for OECD nations and non-G8 OECD nations 
Abstract:
				 This study of the impact of economic
 freedom, regulatory quality and the relative burden of taxation on the
 <italic>level</italic> of per capita real income/GDP among OECD nations
 over the period 2003 to 2007 adopts a modified version of the
 <italic>overall</italic> economic freedom index computed by the Heritage
 Foundation (2013), one with the fiscal freedom and business freedom
 indices removed. This study then provides panel least squares
 fixed-effects estimates for five linear specifications/models. Each nation
 during this time frame can be regarded either as a nation <italic>per
 se</italic> or as a <italic>de facto</italic> 'economic region' within the
 OECD. The analysis first focuses upon all of the OECD nations and then, as
 a robustness test, subsequently focuses only on non-G8 OECD member
 nations. The estimations in this study all provide strong empirical
 support for the three central hypotheses proffered here, namely: (1) the
 higher the overall degree of economic freedom, the higher the per capita
 real income (GDP) <italic>level</italic>; (2) the higher the level of
 regulatory quality, the higher the <italic>level</italic> of per capita
 real income (GDP) and (3) the higher the overall tax burden, expressed as
 a per cent of GDP, the lower is the <italic>level</italic> of per capita
 real income (GDP).			   
Journal: Applied Economics 
Pages: 3836-3848 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.943885 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943885 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3836-3848




Template-Type: ReDIF-Article 1.0
Author-Name: Noureddine Benlagha 
Author-X-Name-First: Noureddine 
Author-X-Name-Last: Benlagha 
Title: Dependence structure between nominal and index-linked bond returns: a bivariate copula and DCC-GARCH approach 
Abstract:
				 This article investigates the dependence
 structure related to four French nominal and index-linked bonds with
 various maturities and reference indices. To achieve this aim, we estimate
 various copulas to select the appropriate one for our data. We also
 compare results obtained using the copula method with multivariate dynamic
 conditional correlation GARCH (DCC-GARCH) modelling. The major issue in
 this study is that the best copulas used to model the dependence among
 bond returns are the Plackett and Student models. We also find a dynamic
 correlation between bond returns. In particular, the relationship between
 nominal and indexed bonds is characterized by an asymmetric dependence.
 Moreover, the results obtained by the copula approach are confirmed by
 those obtained by multivariate GARCH modelling. Our empirical study
 provides a useful method that may be employed by decision-makers to
 quantitatively introduce dependence and spillover effects in their bond
 issuance policy. For investors, we propose optimal investment combinations
 in bonds with respect to their investment horizons.			    
Journal: Applied Economics 
Pages: 3849-3860 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.943886 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3849-3860




Template-Type: ReDIF-Article 1.0
Author-Name: George Milunovich 
Author-X-Name-First: George 
Author-X-Name-Last: Milunovich 
Author-Name: Jelena Minovi&cacute; 
Author-X-Name-First: Jelena 
Author-X-Name-Last: Minovi&cacute; 
Title: Local and global illiquidity effects in the Balkans frontier markets 
Abstract:
				 We study market illiquidity across 11
 national markets of the Balkans. In general, the EU member countries are
 more liquid than the nonmember countries. Turkey, however, has the most
 liquid market, while Serbia and Bosnia are the least liquid. Global
 illiquidity sourced from the US has a strong and positive impact on
 pricing in eight of the Balkans markets. In contrast, illiquidity
 transmitted from the EU impacts expected returns in only two instances,
 while local illiquidity is significant for just one market. Croatia and
 Slovenia are most susceptible to transmissions of regional illiquidity,
 each receiving illiquidity spillovers from four sources.		    
Journal: Applied Economics 
Pages: 3861-3873 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.943888 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943888 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3861-3873




Template-Type: ReDIF-Article 1.0
Author-Name: O. Israeli 
Author-X-Name-First: O. 
Author-X-Name-Last: Israeli 
Author-Name: M. Weber 
Author-X-Name-First: M. 
Author-X-Name-Last: Weber 
Title: Defining chronic poverty: comparing different approaches 
Abstract:
				 In this study, we discuss two methods
 commonly used in the literature to measure chronic poverty, the permanent
 income approach (where the chronically poor are those whose mean income
 over time is below the poverty line) and the spells approach (where the
 chronically poor are those households who are below the poverty line half
 of the time or more). We check the differences between these two methods
 considering also several household characteristics. The index we use is
 that of Foster, Greer and Thorbecke, FGT, with <inline-formula
 id="ILM0001">						      
 <inline-graphic xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_946182_ilm0001.gif"/>				   
   </inline-formula> and <inline-formula id="ILM0002">			   
			<inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_946182_ilm0002.gif"/>				   
   </inline-formula>. When <inline-formula id="ILM0003">		   
			<inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_946182_ilm0003.gif"/>				   
   </inline-formula> each method identifies the chronically poor (which
 could be different individuals by each method) and shows the percentage of
 the chronically poor, while when <inline-formula id="ILM0004"> 	   
			      <inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_946182_ilm0004.gif"/>				   
   </inline-formula>the methods also take into account the depth of
 poverty. Our main goal is to show the differences between the two methods,
 so that policymakers would have different perspectives on the problem of
 chronic poverty and could make decisions on this basis. The results show
 that, in the data used, the permanent method and the spells method
 classify the households into chronically poor and nonchronically poor
 definitions almost similarly in some cases. Thus, when measuring chronic
 poverty using the FGT index with <inline-formula id="ILM0005"> 	   
			      <inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_946182_ilm0005.gif"/>				   
   </inline-formula>, the levels of chronic poverty measured by the two
 methods are quite the same for the whole population as well as for
 subgroups of the population. Nevertheless, when using the FGT index with
 <inline-formula id="ILM0006">					       
 <inline-graphic xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_946182_ilm0006.gif"/>				   
   </inline-formula>, the permanent method and the spells method give
 different results, as they take into account the depth of poverty
 differently.			    
Journal: Applied Economics 
Pages: 3874-3881 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.946182 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946182 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3874-3881




Template-Type: ReDIF-Article 1.0
Author-Name: T. Potts 
Author-X-Name-First: T. 
Author-X-Name-Last: Potts 
Title: Governance, corruption and Olympic success 
Abstract:
				 This article is the first to utilize a set
 of World Governance Indicators published by the World Bank to examine what
 role, if any, various characteristics of governance played in promoting
 success in the 2012 Summer Olympics. Although no strong statistical linear
 relationship is found between any of the governance indicators and Olympic
 success, it is shown that nations belonging to roughly the top quintile in
 control of corruption had a lower probability of medalling and received
 lower medal shares, <italic>ceteris paribus.</italic> A possible
 explanation for this reduced success is revealed in that scoring in the
 top quintile of control of corruption is also associated with fewer
 anti-doping violations, which may indicate lower rates of
 performance-enhancing drug use.		   
Journal: Applied Economics 
Pages: 3882-3891 
Issue: 31 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.948672 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948672 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3882-3891




Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett 
Author-X-Name-First: Lila J. 
Author-X-Name-Last: Truett 
Author-Name: Dale B. Truett 
Author-X-Name-First: Dale B. 
Author-X-Name-Last: Truett 
Title: Cost relationships and challenges in the Spanish apparel industry 
Abstract:
				 In the twenty-first century, the Spanish
 textile and apparel industries have faced substantial challenges,
 resulting in declining sales and employment. This study concentrates on
 the apparel industry, since its economic challenges and opportunities
 differ from those of the textile industry. The analysis employs a
 transcendental logarithmic cost function to investigate the presence of
 scale economies and the interrelationships among inputs of domestic
 capital, labour and intermediate goods as well as outsourced intermediate
 products for the Spanish apparel industry and discusses the implications
 for its future competitiveness and the demand for domestic inputs. The
 results are consistent with diseconomies of scale or, in the case of one
 model, possibly constant returns to scale, indicating that some
 contraction of the industry due to international competition will not
 raise unit costs. All of the inputs except for capital and intermediate
 goods were found to be substitutes. An important finding is that the cross
 elasticity values of both labour and domestic intermediate goods with
 respect to the price of outsourced goods have risen over time, indicating
 an increased sensitivity of the quantity demanded of these home-country
 inputs to the price of imported intermediate goods. It follows that
 domestic input markets will be more substantially affected by
 international prices for outsourced inputs as the industry tries to
 maintain its competitiveness in the global environment.		    
Journal: Applied Economics 
Pages: 3893-3906 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.943887 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943887 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3893-3906




Template-Type: ReDIF-Article 1.0
Author-Name: Dong Xiang 
Author-X-Name-First: Dong 
Author-X-Name-Last: Xiang 
Author-Name: Andrew C. Worthington 
Author-X-Name-First: Andrew C. 
Author-X-Name-Last: Worthington 
Author-Name: Helen Higgs 
Author-X-Name-First: Helen 
Author-X-Name-Last: Higgs 
Title: Family ownership, altruism and agency costs in Australian small- and medium-sized enterprises 
Abstract:
				 Given the continuing uncertainty about
 whether family firms enjoy lower agency costs, this article hypothesizes
 that a combination of the effects of family ownership, altruism and
 self-control is instead at play. To begin with, family ownership can
 indeed reduce agency costs through better aligning the interests of owners
 and managers. This is a 'determining' effect in that it independently
 mitigates one source of agency problems. However, altruism combined with
 self-control problems arising from the highly concentrated ownership often
 found in family firms can also increase agency costs. This is an
 'embedding' effect as it is rooted in the personal relationships within
 the family firm. Using the Business Longitudinal Database compiled by the
 Australian Bureau of Statistics on small- and medium-sized enterprises
 (SMEs), we find that for larger SMEs (those with 20-200 employees), the
 gains in lower agency costs arising from family ownership are almost
 completely offset by the losses from altruism and the lack of
 self-control.			      
Journal: Applied Economics 
Pages: 3907-3921 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.946183 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946183 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3907-3921




Template-Type: ReDIF-Article 1.0
Author-Name: Yener Altunbas 
Author-X-Name-First: Yener 
Author-X-Name-Last: Altunbas 
Author-Name: John Thornton 
Author-X-Name-First: John 
Author-X-Name-Last: Thornton 
Title: The (small) blessing of foreign aid: further evidence on aid's impact on democracy 
Abstract:
				 In an empirical contribution to the
 literature of foreign aid, we estimate the impact of foreign aid on
 democracy in a panel of 93 developing economies during 1971-2010. We find
 that foreign aid promotes democracy, with the result robust to different
 estimation methodologies and control variables and to instrumenting for
 foreign aid.			      
Journal: Applied Economics 
Pages: 3922-3930 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.946186 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946186 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3922-3930




Template-Type: ReDIF-Article 1.0
Author-Name: James Bailey 
Author-X-Name-First: James 
Author-X-Name-Last: Bailey 
Title: Who pays the high health costs of older workers? Evidence from prostate cancer screening mandates 
Abstract:
				 Between 1992 and 2009, 30 US states
 adopted laws mandating that health insurance plans cover screenings for
 prostate cancer. Because prostate cancer screenings are used almost
 exclusively by men over age 50, these mandates raise the cost of insuring
 older men relative to other groups. This article uses a triple-difference
 empirical strategy to take advantage of this quasi-random natural
 experiment in raising the cost of employing older workers. Using
 Integrated Public Use Microdata Series data from the March Supplement of
 the Current Population Survey, I find that the increased cost of insuring
 older workers results in their receiving 2.8% lower hourly wages, being 2%
 less likely to be employed and being 0.7% less likely to have
 employer-sponsored health insurance.			      
Journal: Applied Economics 
Pages: 3931-3941 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.948673 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948673 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3931-3941




Template-Type: ReDIF-Article 1.0
Author-Name: Eivind Hestvik Br&aelig;kkan 
Author-X-Name-First: Eivind Hestvik 
Author-X-Name-Last: Br&aelig;kkan 
Title: Disentangling supply and demand shifts: the impacts on world salmon price 
Abstract:
				 To understand price changes, one must
 determine the relative impact of supply and demand shifts on price.
 Conditional on predetermined supply and demand elasticities, we retrieve
 yearly shifts in regional supply and demand. The relative impact on price
 from each supply and demand shift is determined through an equilibrium
 displacement model (EDM). This procedure is applied on a yearly basis for
 the world salmon market in the period 2002 to 2011. The results indicate a
 large variation in demand and supply growth both over time and between
 regions. While average annual price impacts from supply or demand shifts
 from most regions are not statistically significant, price impacts from
 supply or demand shifts for specific periods are detected in all but one
 region. This indicates that the use of smooth trend indicators is likely
 to be inappropriate for measuring supply and demand shifts and their
 impacts on price. The procedure presented in this article can be a useful
 instrument for determining the relative impacts of supply and demand
 shifts on price in any market with unstable price behaviour.		    
Journal: Applied Economics 
Pages: 3942-3953 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.948674 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948674 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3942-3953




Template-Type: ReDIF-Article 1.0
Author-Name: Clive B. Walker 
Author-X-Name-First: Clive B. 
Author-X-Name-Last: Walker 
Title: Housing booms and media coverage 
Abstract:
				 This article analyses news media coverage
 of the housing market. Building on theories of media influence where word
 of mouth is the final mechanism of opinion change but media initiate
 discourse, I examine the relationship between news media and the recent UK
 house price boom. Over 30&nbsp;000 articles on the UK housing market from
 the period 1993 to 2008 are analysed, and it is found that media
 Granger-caused real house price changes, suggesting the media may have
 influenced opinions on the housing market. However, media sentiment on the
 housing market did not change with the secular increase in house prices in
 the 2000s, suggesting that the media did not contribute to the UK's
 housing boom and may have helped constrain it. 		 
Journal: Applied Economics 
Pages: 3954-3967 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.948675 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948675 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3954-3967




Template-Type: ReDIF-Article 1.0
Author-Name: Sa&scaron;a Popovi&cacute; 
Author-X-Name-First: Sa&scaron;a 
Author-X-Name-Last: Popovi&cacute; 
Author-Name: Andrija &#x110;urovi&cacute; 
Author-X-Name-First: Andrija 
Author-X-Name-Last: &#x110;urovi&cacute; 
Title: Intraweek and intraday trade anomalies: evidence from FOREX market 
Abstract:
				 In this article, we search for the
 evidence of intraweek and intraday anomalies on the spot foreign exchange
 (FOREX) market. Having in mind the international scope of this market,
 empirical evidence against market efficiency (i.e. market anomalies) will
 have important consequences for the substantial number of FOREX investors
 all around the globe. We explore intraweek, intraday and interaction
 between days and hour trade anomalies on the FOREX market over the period
 of 10&nbsp;years using hourly time-series data of Euro and US Dollar
 (EUR/USD) exchange rate on Swiss FOREX market from 1 January 2004 to 11
 January 2014. We compare by analysis of variance test all pairs of mean
 returns on a daily, hourly and daily/hourly basis. <italic>t</italic>-Test
 is used to test whether intraday returns are significantly different from
 zero. We employ Tukey's honestly significant difference test to explore
 which intraday pairs of hourly mean returns are significantly greater than
 zero. We find that intraday and interaction between day and hour anomalies
 are present in trading EUR/USD on the spot FOREX market over the period of
 10&nbsp;years. The best arbitrage opportunity is evidenced on Fridays,
 when selling USD and buying EUR at 00:00 and selling EUR and buying USD at
 03:00 the same day.			     
Journal: Applied Economics 
Pages: 3968-3979 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.948676 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948676 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3968-3979




Template-Type: ReDIF-Article 1.0
Author-Name: Jian Wang 
Author-X-Name-First: Jian 
Author-X-Name-Last: Wang 
Author-Name: Xintian Zhuang 
Author-X-Name-First: Xintian 
Author-X-Name-Last: Zhuang 
Author-Name: Jun Yang 
Author-X-Name-First: Jun 
Author-X-Name-Last: Yang 
Author-Name: Jiliang Sheng 
Author-X-Name-First: Jiliang 
Author-X-Name-Last: Sheng 
Title: The effects of optimism bias in teams 
Abstract:
				 This article imports a behavioural
 perspective into a team context to study the effort-coordination problem
 among agents. Specifically, we investigate how the presence of optimism
 bias impacts the severity of the free-rider problem, the organizational
 structure of the team and the compensation contracts offered to agents in
 equilibrium. The results indicate that all agents become more reluctant to
 exert effort and the team welfare decreases when some of its agents are
 optimistic, suggesting that optimism aggravates the free-rider problem in
 teams. Appointing a team leader makes all agents work harder, and the team
 benefits more by having the optimistic agent as its leader. These findings
 are in sharp contrast to the effects of overconfidence as identified in
 the literature. It is advisable to pay the optimistic agents less than the
 rational agents. Encouragingly, optimistic agents can learn about their
 own bias in the long run, leaving their team without too much detriment of
 optimism.			  
Journal: Applied Economics 
Pages: 3980-3994 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.948678 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948678 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3980-3994




Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Luckstead 
Author-X-Name-First: Jeff 
Author-X-Name-Last: Luckstead 
Author-Name: Seung Mo Choi 
Author-X-Name-First: Seung Mo 
Author-X-Name-Last: Choi 
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: Ron C. Mittelhammer 
Author-X-Name-First: Ron C. 
Author-X-Name-Last: Mittelhammer 
Title: China's catch-up to the US economy: decomposing TFP through investment-specific technology and human capital 
Abstract:
				 We implement a neoclassical growth model
 that incorporates investment-specific technology (IST) modifying capital
 investment in the law of motion of capital and bifurcates productivity
 into human capital and total factor productivity (TFP) in the production
 function. We focus on the role of changes in the quality-adjusted price of
 investment goods on China's growth by comparing the effects of IST and
 human capital on the decomposition of US and Chinese productivity. The
 results show that both human capital and IST play an important role in the
 decomposition of US TFP. For China, human capital accounts for an
 increasingly higher portion of Chinese TFP for the period 1952-2009;
 however, IST contributes to the explanation of TFP only after the 1979
 reforms. The analysis is extended by considering the impact of IST in the
 consumer's investment decision and by projecting both countries' GDP while
 modelling unbalanced Chinese growth using catch-up. Our model predicts
 that the Chinese economy will surpass the US economy in 2024.		    
Journal: Applied Economics 
Pages: 3995-4007 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.948677 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948677 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3995-4007




Template-Type: ReDIF-Article 1.0
Author-Name: F. Chen 
Author-X-Name-First: F. 
Author-X-Name-Last: Chen 
Author-Name: X. Sun 
Author-X-Name-First: X. 
Author-X-Name-Last: Sun 
Title: Urban-rural income polarization and economic growth in China: evidence from the analysis of a dynamic panel data model 
Abstract:
				 Using a dynamic panel data model and the
 system GMM, this article examines the relationship between urban-rural
 income polarization and economic growth at the provincial level in the
 period 1995 to 2010 in China. The estimated results and significant tests
 indicate that a certain degree of urban-rural income polarization is
 beneficial to economic growth at the provincial level in both stages for
 China as a whole, though the contribution of urban-rural income
 polarization to economic growth is relatively small. Aggravating
 urban-rural income polarization has a negative impact on economic growth
 in China. Based on a cluster analysis of regional economic growth at the
 provincial level, the authors carried out the same analysis separately for
 two categories of regions too. The results for those two categories of
 regions show that positive correlations also exist between urban-rural
 income polarization and economic growth in both stages, which are very
 similar to the analysis for the whole of China. In addition, a meaningful
 finding can be derived that the contribution of consumption growth rate to
 economic growth rate in the second stage is smaller than that in the first
 stage obviously.		       
Journal: Applied Economics 
Pages: 4008-4023 
Issue: 32 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.950792 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950792 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:4008-4023




Template-Type: ReDIF-Article 1.0
Author-Name: X. Chapsa 
Author-X-Name-First: X. 
Author-X-Name-Last: Chapsa 
Author-Name: C. Katrakilidis 
Author-X-Name-First: C. 
Author-X-Name-Last: Katrakilidis 
Title: Assessing economic convergence in the EU: is there a perspective for the 'cohesion countries'? 
Abstract:
 This article analyses the stochastic income convergence within the EU-15.
 The empirical analysis uses per capita GDP, in PPP and in constant prices
 of 2005 for the period 1950 to 2010. Apart from the traditional DF type
 tests we also account for possible structural changes. In this direction,
 we employ the Zivot-Andrews (1992) and the Lee-Strazicich (1999, 2003)
 testing procedures, for one and two breaks, endogenously determined.
 Furthermore, we apply the Carlino and Mills (1993) methodology proposed
 for the detection of <italic>&beta;</italic>-convergence. The overall
 evidence supports the existence of two discrete clubs, the first by the
 'cohesion countries' (Portugal, Ireland, Greece and Spain) and the second
 by the remaining members. In particular, there is a clear evidence of
 convergence within each club, whereas between clubs there is a luck of
 catching-up effects. Furthermore, investigation of correlation between
 relative per capita GDP of each country and several factors that are often
 identified as growth stimulants, namely Total Factor Productivity, FDI,
 investment and openness confirm, with the exception of Greece, a strong
 association between these factors and the convergence process. However,
 progress in the convergence has not been uniform across countries and over
 time, reflecting the specific interactions between domestic and
 international factors and their impact on the convergence process of
 individual countries.
Journal: Applied Economics 
Pages: 4025-4040 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.946185 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946185 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4025-4040




Template-Type: ReDIF-Article 1.0
Author-Name: J. R. Kim 
Author-X-Name-First: J. R. 
Author-X-Name-Last: Kim 
Author-Name: K. Chung 
Author-X-Name-First: K. 
Author-X-Name-Last: Chung 
Title: Regime switching and the (in)stability of the price-rent relationship: evidence from the US 
Abstract:
 Present value models of house prices assert that in the absence of
 self-fulfilling bubbles, a house price is equal to the present discount
 value of all future rents, which implies a linear relationship between
 house price and rent, and hence a stable price-to-rent ratio. Using a
 Markov switching error correction model, we re-examine this relationship
 in the US housing market and find two distinctive regimes: one with a
 long-run relation between house price and rent predicted by the present
 value models and the other in which the relation is nonlinear.
 Furthermore, we find evidence that deviations of house prices from the
 present value models' predictions are caused by the overreaction of house
 prices to movements in rents rather than speculative bubbles attributable
 to extraneous factors.
Journal: Applied Economics 
Pages: 4041-4052 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.950793 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950793 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4041-4052




Template-Type: ReDIF-Article 1.0
Author-Name: J. Stevens 
Author-X-Name-First: J. 
Author-X-Name-Last: Stevens 
Author-Name: P. de Lamirande 
Author-X-Name-First: P. 
Author-X-Name-Last: de Lamirande 
Title: Testing the efficiency of the futures market for crude oil in the presence of a structural break 
Abstract:
 The efficiency of the futures market for crude oil has been the subject of
 significant study, with the basis regression representing a popular
 methodology. However, the parameters of this model are subject to a
 structural break, casting doubt on any conclusion regarding the efficiency
 of the futures market. To address this problem, this article employs a
 simple generalization which is capable of testing the efficiency of a
 futures market in the presence of a structural break. Using this approach,
 strong evidence of inefficiency is found in the one month futures contract
 for West Texas Intermediate for the period between 1985 and 2013, which is
 otherwise not detected.
Journal: Applied Economics 
Pages: 4053-4059 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.950794 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950794 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4053-4059




Template-Type: ReDIF-Article 1.0
Author-Name: Kui-Wai Li 
Author-X-Name-First: Kui-Wai 
Author-X-Name-Last: Li 
Title: An analysis on economic opportunity 
Abstract:
 Although economic opportunity is considered as a latent variable, it can
 serve as another factor in promoting growth and development. Through the
 construction of an economic opportunity index, this article identifies the
 extensity and intensity channels through which economic opportunity is
 created. Data on 24 variables for 184 world economies for the period 2000
 to 2010 are collected for the empirical analysis. The methodology involves
 the use of principal component analysis in constructing three indices for
 the parametric and nonparametric regression analyses. The country sample
 is divided into OECD and non-OECD economies so as to examine their
 different performances. Extensity seems to be the more important channel
 to all economies, but for non-OECD economies, a higher performance in
 intensity can enrich the effect of extensity on economic opportunity.
Journal: Applied Economics 
Pages: 4060-4074 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.950795 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950795 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4060-4074




Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi 
Author-X-Name-First: Tatsuyoshi 
Author-X-Name-Last: Miyakoshi 
Title: Is the pragmatic response to International Monetary Fund quotas and credit limits favourable? 
Abstract:
 Under the International Monetary Fund (IMF)'s recently developed pragmatic
 response, the amount a member can borrow is not determined by its quota.
 We consider two pragmatic responses that produce a Pareto improvement,
 compared with the IMF rule: one mandated by the IMF and the other related
 to the trade of the additional credit limit in the market. Both these
 responses indicate that the additional credit limit on top of the IMF rule
 should be positive (negative) for a country whose investment return is
 larger (smaller) than the average investment return across all IMF member
 developing countries. The rule for the IMF credit limit does not reflect
 the demand for credit, which induces inefficiency. The first pragmatic
 response, which has an appropriately small negotiation and distribution
 cost per unit incurred by the IMF, may dominate the second one.
Journal: Applied Economics 
Pages: 4075-4082 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.950796 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950796 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4075-4082




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Wagner 
Title: Is export diversification good for profitability? First evidence for manufacturing enterprises in Germany 
Abstract:
 This article uses a tailor-made newly available data set for enterprises
 from manufacturing industries in Germany to investigate for the first time
 the links between export diversification over destination countries and
 goods on the one hand and the profitability of the exporting firms on the
 other hand. We find that profits tend to be larger in firms with less
 diversified export sales over goods and in firms with more diversified
 export sales over destination countries.
Journal: Applied Economics 
Pages: 4083-4090 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.950797 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950797 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4083-4090




Template-Type: ReDIF-Article 1.0
Author-Name: Santosh Kumar 
Author-X-Name-First: Santosh 
Author-X-Name-Last: Kumar 
Author-Name: Emily A. Dansereau 
Author-X-Name-First: Emily A. 
Author-X-Name-Last: Dansereau 
Author-Name: Christopher J. L. Murray 
Author-X-Name-First: Christopher J. L. 
Author-X-Name-Last: Murray 
Title: Does distance matter for institutional delivery in rural India? 
Abstract:
 This article estimates the causal effect of distance to health facility on
 in-facility birth in rural India, taking into account the endogenous
 placement of the health facility. We find that women living farther away
 from the health facilities are less likely to give birth at a health
 facility. Each additional kilometre from the nearest health facility is
 associated with a 4.4% decline in the probability of in-facility birth.
 Policy simulation results indicate that providing access to a health
 facility within 5&nbsp;km would increase institutional delivery by 10%.
 Overall, our findings confirm that distance is an important barrier to
 in-facility births in rural India.
Journal: Applied Economics 
Pages: 4091-4103 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.950836 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950836 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4091-4103




Template-Type: ReDIF-Article 1.0
Author-Name: Les Coleman 
Author-X-Name-First: Les 
Author-X-Name-Last: Coleman 
Title: Involuntary corporate finance: the dominance of history in decisions 
Abstract:
 Lagged values of corporate finance decisions are known to be economically
 important, but most analyses ignore them. This article examines the
 influence on five key financial decisions of previous decisions using a
 data set that includes industry census data. It finds that lagged values
 explain between 25% and 36% of decisions on leverage, payout and
 investment, which gives them strong predictive ability. In regression of
 these decisions on firm and industry traits, omission of lagged values
 leads to a change of around one-third in parameter estimates, and so
 significantly overstates their impact. The influence of lagged values
 persists, and for most decisions is significant for several years. Given
 the stickiness in financial decisions, there are potentially significant
 analytical problems from ignoring their lagged values.
Journal: Applied Economics 
Pages: 4104-4115 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.952889 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952889 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4104-4115




Template-Type: ReDIF-Article 1.0
Author-Name: R. Guo 
Author-X-Name-First: R. 
Author-X-Name-Last: Guo 
Author-Name: P. Zhang 
Author-X-Name-First: P. 
Author-X-Name-Last: Zhang 
Title: A general method of computing the cut-off point in adverse selection models 
Abstract:
 Based on the model set-up in Laffont and Tirole (1986)'s seminal paper
 'Using Cost Observation to Regulate Firms', we provide a general method of
 computing the cut-off point above which inefficient firms should be shut
 down under asymmetric information. With the help of the transversality
 conditions in optimal control, this method of computing the cut-off point
 is directly applicable to other adverse selection models under asymmetric
 information provided the optimization problem in these models could be
 written as an optimal control problem.
Journal: Applied Economics 
Pages: 4116-4124 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.952890 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952890 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4116-4124




Template-Type: ReDIF-Article 1.0
Author-Name: Rabindra Nepal 
Author-X-Name-First: Rabindra 
Author-X-Name-Last: Nepal 
Author-Name: Tooraj Jamasb 
Author-X-Name-First: Tooraj 
Author-X-Name-Last: Jamasb 
Author-Name: Clement Allan Tisdell 
Author-X-Name-First: Clement Allan 
Author-X-Name-Last: Tisdell 
Title: Market-related reforms and increased energy efficiency in transition countries: empirical evidence 
Abstract:
 Energy efficiency improvement is a desirable response to growing climate
 change and security of energy supply concerns. This article studies the
 impacts of a varied set of macro-level market-oriented reforms as well as
 structural change on economy-wide measure of energy efficiency across a
 group of the transition countries. These countries experienced a rapid
 marketization process, which, since the early 1990s, transformed their
 economies from central planning towards market-driven models. We use a
 bias-corrected fixed-effect analysis technique to estimate this effect for
 the period 1990 to 2010. The results suggest that reforms aimed at market
 liberalization, financial sector and most infrastructure industries drove
 energy efficiency improvements. We find significant differences in
 improvements in energy efficiency between transitional Central European
 and Baltic States, South East Europe ones and the Commonwealth of
 Independent States. The reasons for these differences are also discussed.
Journal: Applied Economics 
Pages: 4125-4136 
Issue: 33 
Volume: 46 
Year: 2014 
Month: 11 
X-DOI: 10.1080/00036846.2014.952894 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952894 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4125-4136




Template-Type: ReDIF-Article 1.0
Author-Name: Jeng-Yan Tsai 
Author-X-Name-First: Jeng-Yan 
Author-X-Name-Last: Tsai 
Author-Name: Jyh-Horng Lin 
Author-X-Name-First: Jyh-Horng 
Author-X-Name-Last: Lin 
Author-Name: Chu-Yun Cheng 
Author-X-Name-First: Chu-Yun 
Author-X-Name-Last: Cheng 
Title: Government bailouts and default risks of a duopoly: strong bank versus weak bank 
Abstract:
 A duopolistic loan market includes a strong bank without the problem of
 early closure that opts out of government bailouts and a weak bank with
 this problem that participates in the bailout programmes of distressed
 loan purchases and direct equity injections. A direct implication of our
 framework is that the strong bank's equity will be priced as a standard
 call option, while the weak bank's equity will be priced as a down-and-out
 call option. We find that an increase in either bailout (i.e. distressed
 loan purchases and direct equity injections) directly decreases the weak
 bank's default risk but indirectly increases the strong bank's default
 risk. Accordingly, either bailout contributes to banking stability since
 the indirect positive effect insufficiently offsets the direct negative
 effect, giving an overall negative response of default risks to an
 increase in either bailout. Higher competition by shifting to
 quasi-competition from collusion increases banking stability under either
 bailout. Our analysis suggests that competition is aligned with the
 regulatory objective of improving stability.
Journal: Applied Economics 
Pages: 4137-4150 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.932048 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4137-4150




Template-Type: ReDIF-Article 1.0
Author-Name: James Rude 
Author-X-Name-First: James 
Author-X-Name-Last: Rude 
Author-Name: Yves Surry 
Author-X-Name-First: Yves 
Author-X-Name-Last: Surry 
Author-Name: Robert Kron 
Author-X-Name-First: Robert 
Author-X-Name-Last: Kron 
Title: A generalized double-hurdle model of Swedish gambling expenditures 
Abstract:
 This article estimates the relationship between demand for Swedish
 gambling, income and the other socioeconomic variables using empirical
 models of participation and gambling expenditure. It also indirectly
 attempts to account for the effect of a recent recession on gambling
 behaviour by examining gambling behaviour when the economy was growing
 versus the period immediately after a major recession. The aim of the
 article is to analyse the factors influencing gambling decisions. This is
 done using the double-hurdle method adjusted for the problems of
 heteroscedasticity and nonnormality using an approach that can handle
 extreme values and address skewness. The empirical results ruled out
 Tobit-type models and normally distributed double-hurdle models. The
 pattern on income elasticities across income classes implies that implicit
 Swedish gaming taxes are regressive. Income elasticities become smaller
 after the recession and the decision to participate changed with respect
 to the several of the demographic variables.
Journal: Applied Economics 
Pages: 4151-4163 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.939376 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939376 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4151-4163




Template-Type: ReDIF-Article 1.0
Author-Name: Joscha Beckmann 
Author-X-Name-First: Joscha 
Author-X-Name-Last: Beckmann 
Author-Name: Ansgar Belke 
Author-X-Name-First: Ansgar 
Author-X-Name-Last: Belke 
Author-Name: Florian Verheyen 
Author-X-Name-First: Florian 
Author-X-Name-Last: Verheyen 
Title: Exchange rate pass-through into German import prices - a disaggregated perspective 
Abstract:
 This study analyses the exchange rate pass-through into German import
 prices based on disaggregated data taken on a monthly basis between 1995
 and 2012. Our main contribution is twofold: firstly, we employ various
 time-series techniques to analyse data for different product categories,
 and also cointegration techniques to carefully distinguish between
 short-run and long-run pass-through coefficients. Secondly, in a panel
 data approach we estimate time-varying pass-through coefficients and
 explain their development with regard to various macroeconomic factors.
 Our results show that long-run pass-through is only partly observable and
 incomplete, whereas short-run pass-through shows a more unique character,
 although heterogeneity across product groups does exist. We are also able
 to identify several macroeconomic factors that determine changes in the
 degree of pass-through, which is especially relevant for policymakers.
Journal: Applied Economics 
Pages: 4164-4177 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.946184 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946184 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4164-4177




Template-Type: ReDIF-Article 1.0
Author-Name: Mariya Burdina 
Author-X-Name-First: Mariya 
Author-X-Name-Last: Burdina 
Author-Name: Michael Wright 
Author-X-Name-First: Michael 
Author-X-Name-Last: Wright 
Author-Name: Zhen Zhu 
Author-X-Name-First: Zhen 
Author-X-Name-Last: Zhu 
Title: Is the stock market sticker shocked? A study of market response to recent CAFE regulations in the US 
Abstract:
 In response to increasing environmental concerns, to improve energy
 security and to conserve energy use, the US government has proposed a new
 round of Corporate Average Fuel Economy (CAFE) standards. Many studies
 have focused on how the CAFE standard can be met by various automakers
 that have sales in the US market, and the costs and benefits of the
 companies meeting the standard. However, the stock markets' view on the
 impact of the standard on automakers' profitability is largely absent. We
 study the more recent episode of the CAFE regulation in an effort to try
 to detect the market response using the standard event study method. Our
 empirical findings suggest that while the stock market had some responses
 to the regulation, the large-scale and systematic reaction to the
 regulation is absent. In addition, the market response pattern to the
 regulation appears to be tied to the individual company's compliance
 condition if there is any significant response at all.
Journal: Applied Economics 
Pages: 4178-4189 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.952891 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952891 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4178-4189




Template-Type: ReDIF-Article 1.0
Author-Name: Shenglong Liu 
Author-X-Name-First: Shenglong 
Author-X-Name-Last: Liu 
Author-Name: Guifu Chen 
Author-X-Name-First: Guifu 
Author-X-Name-Last: Chen 
Author-Name: Shigeyuki Hamori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Hamori 
Title: Empirical research on monetary policy, asset prices and inflation: an analysis based on provincial panel data in China 
Abstract:
 In this article, we investigate the dynamic correlations among monetary
 policy, asset prices and inflation and assess the regional effects of
 monetary policy in China for the period October 2007 to July 2013. We
 focus on the interdependencies among monetary policy and asset price
 fluctuations by using the Shanghai Interbank Offered Rate as the preferred
 variable for analysing monetary policy movement. In particular, we apply a
 vector autoregressive model in a panel setting, which allows researchers
 to examine variations over time or across individual regions. The
 empirical results presented herein indicate that monetary policy reacts
 actively to asset prices, although it is still shown to be ineffective. In
 addition, we find that asset prices display some regional differences in
 their response to an unexpected monetary policy shock.
Journal: Applied Economics 
Pages: 4190-4204 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.952892 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952892 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4190-4204




Template-Type: ReDIF-Article 1.0
Author-Name: Firat Yaman 
Author-X-Name-First: Firat 
Author-X-Name-Last: Yaman 
Title: Ethnic externalities in education and second-generation immigrants 
Abstract:
 I analyse the role of ethnic and native human capital - defined,
 respectively, as the average years of schooling of ethnic groups and of
 natives within a specific region - and of ethnic concentrations in the
 educational attainment of second-generation immigrants in Germany.
 Compared to natives' children, parents' education has a small and
 insignificant effect on second-generation immigrants' education. Ethnic
 concentrations have a negative effect, while ethnic capital is
 insignificant. The effect of native capital, too, is insignificant but
 much larger in magnitude than the effect of ethnic capital. For women,
 mother's education is relatively more important. For men, ethnic
 concentrations constitute a stronger impediment to educational attainment
 than for women.
Journal: Applied Economics 
Pages: 4205-4217 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.952893 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952893 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4205-4217




Template-Type: ReDIF-Article 1.0
Author-Name: A. Monta񩳠
Author-X-Name-First: A. 
Author-X-Name-Last: Monta񩳠
Author-Name: L. Olmos 
Author-X-Name-First: L. 
Author-X-Name-Last: Olmos 
Title: Do the Spanish regions converge? A unit root analysis for the HDI of the Spanish regions 
Abstract:
 This article studies the possible stochastic convergence between the
 Spanish regions in 1980-2010. The application of unit root techniques to
 the new Human Development Index recently calculated in Herrero <italic>et
 al.</italic> (2013) allows us to show that the evolution of the Spanish
 economy can be better understood as the sum of divergent forces rather
 than as a group of convergent regions. Similar conclusions can be drawn
 when the <italic>per capita</italic> GDP is used, although these two
 variables exhibit different patterns of behaviour at the end of the
 sample. Finally, we also observe that the distance between northern and
 southern regions has increased since 2000.
Journal: Applied Economics 
Pages: 4218-4230 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.952895 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4218-4230




Template-Type: ReDIF-Article 1.0
Author-Name: K. Farla 
Author-X-Name-First: K. 
Author-X-Name-Last: Farla 
Title: Determinants of firms' investment behaviour: a multilevel approach 
Abstract:
 This article investigates the determinants of firms' investment behaviour
 using firm data from 101 developing and emerging economies. A substantial
 number of firms does not invest in fixed capital or invests little
 relative to sales revenue. Using a multilevel probit model we study what
 factors trigger investment, and using a multilevel Heckman selection model
 we study what factors influence a firm's investment-to-sales ratio. We
 find that firms' investment behaviour has relatively little dependency on
 a country's macroeconomic setting. Additionally, we find that, on average,
 firms that are completely foreign-owned have a relatively lower
 investment-to-sales ratio. Finally, we find evidence which suggests that
 the probability of investing is higher for firms located in countries with
 more control of corruption and we find some evidence which suggests that
 partially foreign-owned firms located in countries with relatively less
 corruption have a relatively higher investment-to-sales ratio.
Journal: Applied Economics 
Pages: 4231-4241 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.955167 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955167 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4231-4241




Template-Type: ReDIF-Article 1.0
Author-Name: Neil R. Meredith 
Author-X-Name-First: Neil R. 
Author-X-Name-Last: Meredith 
Title: Religious service attendance and labour force status: evidence from survey data using count data methods 
Abstract:
 I undertake count data estimation with data from the National Longitudinal
 Survey of Youth 1979 cohort and the Health and Retirement Study to
 evaluate the relationship between time spent out of the labour force and
 the frequency of religious service attendance for individuals of working
 age. I also examine whether being out of the labour force is correlated
 with the frequency of religious service attendance. Results using Poisson
 fixed-effect and negative binomial estimation suggest that men under age
 50 appear to attend religious services less frequently when out of the
 labour force. I ascribe this finding to younger men's religious service
 attendance being related to having work or the pursuit of work. Men
 between ages 50 and 65 attend religious services less frequently when out
 of the labour force, which I attribute to serious health problems in later
 age forcing labour market exiting and reduced frequency of religious
 service attendance. Women between ages 50 and 65 attend religious services
 more frequently when out of the labour force, which I ascribe to having
 more time to pursue religious activity in addition to women's established
 proclivity to religious commitment.
Journal: Applied Economics 
Pages: 4242-4255 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.955253 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955253 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4242-4255




Template-Type: ReDIF-Article 1.0
Author-Name: Robert M. McNab 
Author-X-Name-First: Robert M. 
Author-X-Name-Last: McNab 
Author-Name: Diana I. Angelis 
Author-X-Name-First: Diana I. 
Author-X-Name-Last: Angelis 
Title: Does computer-based training impact maintenance costs and actions? An empirical analysis of the US Navy's AN/SQQ-89(v) sonar system 
Abstract:
 The United States Navy decided in the early 2000s to replace traditional,
 instructor-led schoolhouse training with computer-based training (CBT).
 While employing CBT may produce gains in knowledge acquisition and lower
 costs for repetitive, low-skill work, there is a lack of empirical
 evidence whether these benefits exist for more highly skilled Navy
 operations. Anecdotal evidence suggests that CBT failed to sufficiently
 prepare new sailors for sophisticated systems' maintenance and operation.
 To determine the validity of this evidence, we examine how CBT has
 affected the AN/SQQ-89(v) sonar. We empirically analyse whether the Navy's
 introduction of CBT significantly altered fleet maintenance costs, actions
 and training requirements, by assembling a unique data set of ships,
 locations, personnel, maintenance costs and maintenance actions.
 Controlling for the Navy's plan to man the system, the number of
 authorized billets and the number of personnel on board, we find that CBT
 adversely impacts costs, actions and maintenance hours for the sonar
 system.
Journal: Applied Economics 
Pages: 4256-4266 
Issue: 34 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.955254 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955254 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4256-4266




Template-Type: ReDIF-Article 1.0
Author-Name: Wai-Yip Alex Ho 
Author-X-Name-First: Wai-Yip Alex 
Author-X-Name-Last: Ho 
Author-Name: James Yetman 
Author-X-Name-First: James 
Author-X-Name-Last: Yetman 
Title: Do economies stall? 
Abstract:
 A 'stalling' economy has been defined as one that experiences a discrete
 deterioration in economic performance following a decline in its growth
 rate to below some threshold level. We examine the international evidence
 for stalling in a panel of 51 economies using two different definitions of
 a stall threshold (time-invariant and related to lagged average growth
 rates). We find that the evidence for stalling is limited: only 7-12 of
 the economies in our sample experience statistically significant stalls at
 the 5% level based on any one definition.
Journal: Applied Economics 
Pages: 4267-4275 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.955255 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955255 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4267-4275




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Artz 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Artz 
Author-Name: David M. Welsch 
Author-X-Name-First: David M. 
Author-X-Name-Last: Welsch 
Title: Childcare quality and pricing: evidence from Wisconsin 
Abstract:
 Childcare prices vary dramatically both between and within states. We
 identify the effects of demographic and provider characteristics on
 childcare pricing, but focus primarily on whether unique
 government-provided information on childcare quality has an effect on
 pricing. Using provider-level observations across three adjacent counties
 in southern Wisconsin, we find that this government-provided information
 on childcare quality does not significantly affect pricing. Recognizing
 that information asymmetry may be the root cause of the insignificant
 relationship, we test the relationship further within multiple subsamples
 and with alternative models. Only the lowest quality childcare providers
 are significantly associated with lower prices in areas that we
 hypothesize suffer from greater information asymmetry.
Journal: Applied Economics 
Pages: 4276-4289 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.955256 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955256 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4276-4289




Template-Type: ReDIF-Article 1.0
Author-Name: John Kandrac 
Author-X-Name-First: John 
Author-X-Name-Last: Kandrac 
Title: Modelling the causes and manifestation of bank stress: an example from the financial crisis 
Abstract:
 In this study, I model the predictors and manifestation of bank stress
 during the financial crisis using a Multiple Indicator Multiple Cause
 model. Unlike most early warning models that predict failure
 probabilities, this article describes a framework for predicting a broader
 notion of bank stress that need not rely on regulatory decisions. As such,
 this method can be easily applied to large institutions, and avoids the
 complications associated with modelling a regulatory decision such as
 failure or a CAMELS downgrade. Using bank reliance on Term Auction
 Facility funds and the out-of-sample incidence of failures and
 acquisitions, I demonstrate that the measure of bank stress generated here
 accords with other notions of bank-level distress. Finally, this method
 catalogues predictors of distress during the financial crisis. Thus, this
 article can help assess the validity of several recent regulatory
 proposals. I find that those banks entering the crisis with more Tier 1
 capital, more liquid balance sheets, and relatively stable liabilities
 subsequently came under less stress. These findings support the Basel III
 recommended increases in banks' capital adequacy, liquidity and stable
 funding.
Journal: Applied Economics 
Pages: 4290-4301 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.955257 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955257 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4290-4301




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Dreger 
Author-X-Name-First: Christian 
Author-X-Name-Last: Dreger 
Author-Name: Yanqun Zhang 
Author-X-Name-First: Yanqun 
Author-X-Name-Last: Zhang 
Title: On the relevance of exports for regional output growth in China 
Abstract:
 Despite high economic growth during the past decades, China is still
 vulnerable to shocks arising from industrial states. The advanced
 economies strongly influence Chinese export performance, with subsequent
 effects on output growth. Using a production function, this article
 examines to which extent regional GDP growth in China is export driven. In
 a panel of 28 Chinese provinces, series are splitted into common and
 idiosyncratic components, the latter being stationary. The results
 indicate cointegration between the common components of GDP, the capital
 stock and exports. In equilibrium, exports increase GDP by more than their
 impact expected from the national accounts. While exports and capital are
 weakly exogenous, GDP responds to deviations from the long run. A similar
 adjustment pattern can be detected for most regions, except for some
 provinces in the Western part of the country.
Journal: Applied Economics 
Pages: 4302-4308 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.955258 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955258 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4302-4308




Template-Type: ReDIF-Article 1.0
Author-Name: J. C. Hadrich 
Author-X-Name-First: J. C. 
Author-X-Name-Last: Hadrich 
Author-Name: J. J. Jackson 
Author-X-Name-First: J. J. 
Author-X-Name-Last: Jackson 
Title: Livestock emissions regulation with unknown damages and strategic technology adoption 
Abstract:
 Livestock emissions have been identified as a contributor to greenhouse
 gas build-up yet have remained unregulated in the US. A game-theoretic
 model in the style of Tarui and Polasky (2005) was analysed where the
 dairy industry strategically chooses to abate air emissions with
 technology adoption and herd size decisions while a regulator chooses a
 tax rate on emissions to satisfy the desires of competing interest groups.
 This model allows the effects of potential air emission regulation on the
 dairy industry to be evaluated. Results demonstrate that dairy farms react
 to the increased cost of air regulation by decreasing herd size rather
 than investing in air emission abatement technology in the short run. This
 suggests that incentives may need to be put in place to induce adoption in
 emissions abatement technology at the livestock level in the long run.
Journal: Applied Economics 
Pages: 4309-4317 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.957440 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957440 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4309-4317




Template-Type: ReDIF-Article 1.0
Author-Name: Nannan Yuan 
Author-X-Name-First: Nannan 
Author-X-Name-Last: Yuan 
Author-Name: Shigeyuki Hamori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Hamori 
Title: Crowding-out effects of affordable and unaffordable housing in China, 1999-2010 
Abstract:
 Using panel data on housing construction, this article examines the
 crowding-out effects of affordable and unaffordable housing in China from
 1999 to 2010. Applying a dynamic panel model allows us to examine the
 dynamic interactions between affordable and unaffordable housing
 constructions when controlling for region-specific fixed and time-specific
 effects. We analyse whether affordable (unaffordable) housing construction
 has changed in response to the past and contemporaneous construction of
 unaffordable (affordable) housing. Our empirical results reveal an
 asymmetric crowding-out pattern between affordable and unaffordable
 housing. We also observe that when urbanization rate is lower than 57.39%,
 unaffordable housing construction crowds out affordable housing
 construction. Moreover, the crowding-out effect of unaffordable housing on
 affordable housing decreases with rising urbanization rates.
Journal: Applied Economics 
Pages: 4318-4333 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.957441 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957441 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4318-4333




Template-Type: ReDIF-Article 1.0
Author-Name: V. Masson 
Author-X-Name-First: V. 
Author-X-Name-Last: Masson 
Author-Name: N. Sim 
Author-X-Name-First: N. 
Author-X-Name-Last: Sim 
Author-Name: L. Wedding 
Author-X-Name-First: L. 
Author-X-Name-Last: Wedding 
Title: Did the AFL equalization policy achieve the evenness of the league? 
Abstract:
 In this article, we investigate whether the Australian Football League
 intervention policies coincided with a more even-playing field in the
 league, as captured by individual match margins. We find that only two out
 of the eight major policies implemented over the last hundred years are
 correlated with lower margin.
Journal: Applied Economics 
Pages: 4334-4344 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.957442 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957442 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4334-4344




Template-Type: ReDIF-Article 1.0
Author-Name: Jinhwa Chung 
Author-X-Name-First: Jinhwa 
Author-X-Name-Last: Chung 
Author-Name: Seonghoon Jeon 
Author-X-Name-First: Seonghoon 
Author-X-Name-Last: Jeon 
Title: Portfolio effects in conglomerate mergers: the empirical evidence of leverage effects in Korean liquor market 
Abstract:
 In the article, we implement an empirical test on the portfolio effects of
 conglomerate mergers, using the data of Korean liquor market during the
 period 1990-2008 in which there have been several important conglomerate
 mergers between beer and soju companies. We find that the combined company
 could take the advantage of regional market dominance in the beer market
 in expanding regional market shares in the soju market. Such leverage
 effects are differentiated from the efficiency-enhancing portfolio effects
 that result in the combined company's expanding shares over all regional
 soju markets regardless of the presence of dominance in the beer market.
 The common distribution channels of liquor wholesalers seem to play a
 pivotal role in the combined firm's expansion of dominance in one market
 into another. Furthermore, we implement separate empirical tests for two
 subsamples of regionally dominant and nondominant soju companies in order
 to differentiate the leverage effects of foreclosure from those of
 toehold. The empirical results show the evidence of leverage effects only
 for a sample of nondominant soju companies. This implies that the leverage
 effects of conglomerate mergers between beer and soju companies in Korea
 had pro-competitive effects in that the combined firm could compete more
 effectively with regionally dominant companies with the leverage of
 dominance in the beer market as toehold.
Journal: Applied Economics 
Pages: 4345-4359 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.957443 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957443 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4345-4359




Template-Type: ReDIF-Article 1.0
Author-Name: B. Mak Arvin 
Author-X-Name-First: B. Mak 
Author-X-Name-Last: Arvin 
Author-Name: Rudra P. Pradhan 
Author-X-Name-First: Rudra P. 
Author-X-Name-Last: Pradhan 
Title: Broadband penetration and economic growth nexus: evidence from cross-country panel data 
Abstract:
 This article investigates whether there are Granger causal relationships
 between broadband penetration, degree of urbanization, foreign direct
 investment and economic growth using a panel data set covering the G-20
 countries for the period 1998-2011. Using our multivariate framework, we
 first find that all of the variables are cointegrated. Our findings
 further reveal a network of causal connections between the variables
 including short-run bidirectional causality between broadband penetration
 and economic growth among the more developed countries within the G-20. On
 the other hand, for the developing countries within the G-20, there is
 evidence of unidirectional causality from economic growth to broadband
 penetration.
Journal: Applied Economics 
Pages: 4360-4369 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.957444 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4360-4369




Template-Type: ReDIF-Article 1.0
Author-Name: Kristie Briggs 
Author-X-Name-First: Kristie 
Author-X-Name-Last: Briggs 
Author-Name: Mary Wade 
Author-X-Name-First: Mary 
Author-X-Name-Last: Wade 
Title: More is better: evidence that joint patenting leads to quality innovation 
Abstract:
 Joint ownership of a patent is most often viewed by firms as a second-best
 option compared to single, monopoly ownership. However, the results of
 this article suggest that there may be reason for businesses and
 policymakers to incentivize joint patenting behaviour. This is because,
 joint patent ownership is found to positively impact the quality of an
 innovation (as measured by forward patent citations). In addition, the
 degree of quality increases with the number of patent owners. Since past
 research confirms the important links between patent quality and ongoing
 innovation, and between innovation and growth, those factors that impact
 patent quality are deserving of attention. Economic research on joint
 patenting is currently limited, but we hope to shed light on the
 importance of expanding dialogue on this topic.
Journal: Applied Economics 
Pages: 4370-4379 
Issue: 35 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.957446 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957446 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4370-4379




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Balcilar 
Author-Name: Rene頶an Eyden 
Author-X-Name-First: Rene頍
Author-X-Name-Last: van Eyden 
Author-Name: Roula Inglesi-Lotz 
Author-X-Name-First: Roula 
Author-X-Name-Last: Inglesi-Lotz 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Time-varying linkages between tourism receipts and economic growth in South Africa 
Abstract:
 The causal link between tourism receipts and GDP has recently become a
 major focus in the tourism economics literature. Results obtained in
 recent studies about the causal link appear to be sensitive with respect
 to the countries analysed, sample period and methodology employed.
 Considering the sensitivity of the causal link, we use rolling window and
 time-varying coefficient estimation methods to analyse the parameter
 stability and Granger causality based on a vector error correction model
 (VECM). When applied to South Africa for the period 1960-2011, the
 findings are as follows: results from the full-sample VECM indicate that
 there is no Granger causality between tourism receipts and GDP, while the
 findings from the time-varying coefficients model based on the state-space
 representation show that tourism receipts have positive-predictive content
 for GDP for the entire period, with the exception of the period between
 1985 and 1990. Full-sample time-varying causality tests show bidirectional
 strong causality between tourism receipts and GDP.
Journal: Applied Economics 
Pages: 4381-4398 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.957445 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957445 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4381-4398




Template-Type: ReDIF-Article 1.0
Author-Name: Gulgun Bayaz-Ozturk 
Author-X-Name-First: Gulgun 
Author-X-Name-Last: Bayaz-Ozturk 
Author-Name: Tao Chen 
Author-X-Name-First: Tao 
Author-X-Name-Last: Chen 
Author-Name: Kenneth A. Couch 
Author-X-Name-First: Kenneth A. 
Author-X-Name-Last: Couch 
Title: Intragenerational mobility and the ratio of permanent to total inequality 
Abstract:
 This article provides finite sample conditions for the ratio of permanent
 to total inequality based on methods of Gottschalk and Moffitt (1994) to
 be equivalent to the Shorrocks <italic>R</italic> constructed with a Theil
 General Entropy Index. A simple test emerges of whether the two measures
 can be seen as equivalent that reveals the implicit social weighting
 placed on different parts of the income distribution by the
 Gottschalk-Moffitt methods. Using data from the PSID and the SOEP for
 annual income from 1984 through 2006, the condition for the two measures
 to be equivalent is found to be satisfied in both data sets.
Journal: Applied Economics 
Pages: 4399-4408 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.962225 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962225 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4399-4408




Template-Type: ReDIF-Article 1.0
Author-Name: Tine Hjernø Lesner 
Author-X-Name-First: Tine Hjernø 
Author-X-Name-Last: Lesner 
Author-Name: Ole Dahl Rasmussen 
Author-X-Name-First: Ole Dahl 
Author-X-Name-Last: Rasmussen 
Title: The identifiable victim effect in charitable giving: evidence from a natural field experiment 
Abstract:
 We design a natural field experiment to enhance our understanding of the
 role of the identifiable victim effect in charitable giving. Using direct
 mail solicitations to 25 797 prior donors of a nonprofit charity, we
 tested the responsiveness of donors to make a contribution to either an
 identifiable or a statistical victim. Unlike much previous research, which
 has used only laboratory experiments, we find that the campaign letter
 focusing on one identifiable victim did not result in significantly larger
 donations than the campaign letter focusing on the statistical victim. In
 addition to the role of the identifiable victim, we investigate the degree
 to which each of our campaign letters affected donors' payments to other
 concurrent and future campaigns and whether there is decreasing marginal
 returns to campaigning in the sense that receiving a letter crowds out
 donors' payments to other future and concurrent campaigns. We find some
 evidence of crowding out, indicating that charitable giving could be a
 zero-sum game; however, the treatment letters did not have different
 effects on other payments.
Journal: Applied Economics 
Pages: 4409-4430 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.962226 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962226 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4409-4430




Template-Type: ReDIF-Article 1.0
Author-Name: Meliyanni Johar 
Author-X-Name-First: Meliyanni 
Author-X-Name-Last: Johar 
Author-Name: Jeffrey Truong 
Author-X-Name-First: Jeffrey 
Author-X-Name-Last: Truong 
Title: Direct and indirect effect of depression in adolescence on adult wages 
Abstract:
 It is well recognized that a depressive mental state can persist for a
 long time, and this can adversely impact labour market outcomes. The aim
 of this article is to examine the direct association between depression
 status in late-teenage years and adult wages, as well as the indirect
 association, operating through accumulated education, experience and
 occupation choice. Using the National Longitudinal Survey of Youth 1997
 data, we find adolescent depression is associated with a wage penalty of
 around 10-15%, but its mechanics are very different for males and females.
 For males, about three quarters of the wage penalty is through the direct
 channel, whilst for females the indirect effect channel is dominant. The
 indirect channel is driven by lower accumulated education, mostly because
 depression discourages further study post high school. These results are
 important because they imply that the association between adolescent
 depression and wages is stronger than has been estimated in previous
 cross-sectional studies.
Journal: Applied Economics 
Pages: 4431-4444 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.962227 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962227 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4431-4444




Template-Type: ReDIF-Article 1.0
Author-Name: Ayako Saiki 
Author-X-Name-First: Ayako 
Author-X-Name-Last: Saiki 
Author-Name: Jon Frost 
Author-X-Name-First: Jon 
Author-X-Name-Last: Frost 
Title: Does unconventional monetary policy affect inequality? Evidence from Japan 
Abstract:
 Inequality has been largely ignored in the literature and practice of
 monetary policy, but is gaining more attention recently. Here, we
 exclusively focus on the impact of unconventional monetary policy (UMP) on
 inequality. We look at how the recent UMP in Japan affected inequality,
 using household survey data. Our vector auto regression (VAR) results show
 that UMP widened income inequality after 2008Q3 as the Bank of Japan (BoJ)
 resumed its zero-interest rate policy and reinstated UMP. This is largely
 due to the portfolio channel. To the best of our knowledge, this is the
 first study to empirically analyse the distributional impact of UMP.
 Japan's extensive experience with UMP may hold important policy
 implications for other countries.
Journal: Applied Economics 
Pages: 4445-4454 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.962229 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962229 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4445-4454




Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig 
Author-X-Name-First: Jochen 
Author-X-Name-Last: Hartwig 
Author-Name: Jan-Egbert Sturm 
Author-X-Name-First: Jan-Egbert 
Author-X-Name-Last: Sturm 
Title: Robust determinants of health care expenditure growth 
Abstract:
 Our aim is to disclose robust explanatory variables for health care
 expenditure (HCE) growth by introducing to this field of research a method
 that is especially well suited for situations of 'model uncertainty': the
 Extreme Bounds Analysis (EBA). We analyse data for 33 OECD countries over
 the period 1970-2010 and include - as far as it is statistically feasible
 - <italic>all</italic> macroeconomic and institutional determinants of HCE
 growth in the EBA that have been suggested in the literature. Furthermore,
 we analyse to what extent outliers in the data influence the results. Our
 results confirm earlier findings that GDP growth and a variable
 representing Baumol's 'cost disease' theory emerge as robust and
 statistically significant determinants of HCE growth. Depending on whether
 or not outliers are excluded, we find up to six additional robust drivers:
 the growth in expenditure on health administration, the change in the
 share of inpatient expenditure in total health expenditure, the (lagged)
 government share in GDP, the change in the insurance coverage ratio, the
 growth in land traffic fatalities and the growth in the population share
 undergoing renal dialysis.
Journal: Applied Economics 
Pages: 4455-4474 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.964829 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964829 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4455-4474




Template-Type: ReDIF-Article 1.0
Author-Name: Nan Jiang 
Author-X-Name-First: Nan 
Author-X-Name-Last: Jiang 
Author-Name: Gail Pacheco 
Author-X-Name-First: Gail 
Author-X-Name-Last: Pacheco 
Title: Demand in New Zealand hospitals: expect the unexpected? 
Abstract:
 The health care sector in New Zealand has undergone substantial structural
 reform since 1983 and stands out relative to other OECD countries, with
 relatively low per capita health expenditure and a high share of public
 funding. Efficient allocation of resources in this public dominant health
 system is therefore paramount. This article uses a national database of
 hospital admissions to predict hospital demand. We find lagged information
 on patient demand imperative in formulating an easy to implement approach
 for predictive purposes. Contrasting predicted with actual demand, we
 construct an indicator of volatility in unexpected patient demand (at both
 the hospital and the disease chapter level) and assess its role with
 regard to patient outcomes. There is consistent evidence that when actual
 patient numbers exceed predicted, patients stay in hospital significantly
 longer and are more likely to have an acute readmission.
Journal: Applied Economics 
Pages: 4475-4489 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.964830 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964830 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4475-4489




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Garmann 
Author-X-Name-First: Sebastian 
Author-X-Name-Last: Garmann 
Title: The causal effect of coalition governments on fiscal policies: evidence from a Regression Kink Design 
Abstract:
 Proportional election systems are widespread across countries and often
 lead to coalition governments. This creates interest in how the form of
 government (single-party or coalition governments) causally influences
 fiscal policies. It is difficult to estimate this causal effect
 empirically because the form of government is not randomly assigned to
 political units. I overcome this problem by using a Regression Kink Design
 which exploits that there is a slope change in the treatment probability
 at the 50% vote share of the strongest party. This method is applied to a
 large panel data set of German local governments. I find that contrary to
 the theoretical prediction, coalition governments significantly decrease
 expenditures.
Journal: Applied Economics 
Pages: 4490-4507 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.964831 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964831 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4490-4507




Template-Type: ReDIF-Article 1.0
Author-Name: Petros Messis 
Author-X-Name-First: Petros 
Author-X-Name-Last: Messis 
Author-Name: Achilleas Zapranis 
Author-X-Name-First: Achilleas 
Author-X-Name-Last: Zapranis 
Title: Asset pricing with time-varying betas for stocks traded on S&P 500 
Abstract:
 This study uses a novel approach for capturing time variation in betas
 whose pattern is treated as a function of market returns. A two-factor
 model (TFM) is constructed using estimated coefficients of a nonlinear
 regression. The model is tested against the CAPM and the Fama and French
 three-factor model in the context of time series regressions. The used
 stocks are traded on S&P 500. The period spans from 1993 to 2011. The time
 series regression results depict the superiority of the TFM in explaining
 portfolio returns including momentum ones. We also provide evidence that
 the particular portfolios employed at the construction of the new model
 accommodate different fundamental characteristics and different risk
 levels.
Journal: Applied Economics 
Pages: 4508-4518 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.964833 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964833 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4508-4518




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Apergis 
Author-Name: James E. Payne 
Author-X-Name-First: James E. 
Author-X-Name-Last: Payne 
Title: The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries 
Abstract:
 This study extends the empirical literature on the determinants of
 renewable energy consumption in the case of 25 OECD countries for the
 period 1980-2011. Preliminary analysis suggests the presence of
 cross-sectional dependence within the panel data. As a result,
 second-generation panel unit root tests of Smith <italic>et al</italic>.
 (2004) and Pesaran (2007) are undertaken to find the respective variables
 that are integrated of order one. Panel cointegration and error correction
 modelling reveal that a long-run relationship exists between renewable
 energy consumption per capita, real GDP per capita, carbon dioxide
 emissions per capita and real oil prices. The long-run elasticity
 estimates are positive and statistically significant for real GDP per
 capita, carbon dioxide emissions per capita and real oil prices. The panel
 error correction model shows that a feedback relationship exists among the
 variables.
Journal: Applied Economics 
Pages: 4519-4525 
Issue: 36 
Volume: 46 
Year: 2014 
Month: 12 
X-DOI: 10.1080/00036846.2014.964834 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964834 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4519-4525




Template-Type: ReDIF-Article 1.0
Author-Name: Cara M. Marshall 
Author-X-Name-First: Cara M. 
Author-X-Name-Last: Marshall 
Title: Isolating the systematic and unsystematic components of a single stock's (or portfolio's) standard deviation 
Abstract:
 This article revisits the roots of modern portfolio theory. Instead of
 isolating the systematic component of risk by recasting the risk in terms
 of a stock's beta coefficient, I decompose the SD directly into its
 systematic and unsystematic components. From this decomposed SD, an
 'adjusted capital market line (CML)' can be derived. It is easily shown
 that the adjusted CML is equivalent to Sharpe's security market line
 (SML). I evaluate the effectiveness of these alternative measures of
 systematic and unsystematic risk using empirical data and find that beta
 often deviates from my systematic risk measure and, in general, tends to
 overestimate a portfolio's risk. This alternative way of looking at
 systematic and unsystematic risk offers easily accessible insights into
 the very nature of risk. Implications include reducing the computational
 complexities in calculating the relevant portion of a portfolio's
 volatility, facilitating sophisticated dispersion trades, estimating
 risk-adjusted returns and improving risk-adjusted performance measurement.
 This article offers new ideas that may influence the teaching of economics
 and finance.
Journal: Applied Economics 
Pages: 1-11 
Issue: 1 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.959652 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959652 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:1-11




Template-Type: ReDIF-Article 1.0
Author-Name: Jin Guo 
Author-X-Name-First: Jin 
Author-X-Name-Last: Guo 
Title: Causal relationship between stock returns and real economic growth in the pre- and post-crisis period: evidence from China 
Abstract:
 This article empirically examines the causality in mean and variance
 between stock returns and real economic growth in China before and after
 the outbreak of US subprime crisis. Using a nonuniform weighting
 cross-correlation approach and the multivariate generalized autoregressive
 conditional heteroscedasticity model, we found no causality in mean or
 variance between China's stock returns and real economic growth for the
 period before the subprime crisis. Interestingly, however, in the period
 after the crisis, we detected unidirectional causality in mean from real
 economic growth to stock returns and unidirectional causality in variance
 from stock returns to real economic growth. These new findings imply that
 the linkage between China's stock market and its real economy has become
 stronger in the post-crisis period. The implication of our results is that
 Chinese policymakers should continue the deregulation and improve the
 efficiency of the stock market to sustain high economic growth rate in the
 future.
Journal: Applied Economics 
Pages: 12-31 
Issue: 1 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.959653 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959653 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:12-31




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Tsung-Pao Wu 
Author-X-Name-First: Tsung-Pao 
Author-X-Name-Last: Wu 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Are house prices in South Africa really nonstationary? Evidence from SPSM-based panel KSS test with a Fourier function 
Abstract:
 This study applies the sequential panel selection method (SPSM) to
 investigate the time-series properties of provincial house prices for
 entire, large, medium and small middle-segments of South Africa. Quarterly
 time-series data were collected from nine provinces in South Africa for
 different house-size categories over the period of 1978.Q1 to 2012.Q4.
 Whereas other panel-based unit-root tests are joint tests of a unit root
 for all members of a panel and are incapable of determining the mix of
 integrated of order zero (<italic>I(0)</italic>) series and integrated of
 order one (<italic>I(1)</italic>) series in a panel setting, the SPSM
 proposed by Chortareas and Kapetanios (2009) can clearly identify how many
 and which series in the panel are stationary processes by classifying a
 whole panel into a group of stationary and nonstationary series. The
 empirical results from several panel-based, as well as standard pure
 time-series, unit-root tests, indicate that house prices for the nine
 provinces studied here are either stationary or nonstationary. However,
 results from the SPSM using the panel version of the Kapetanios <italic>et
 al.</italic> (KSS, 2003) test with a Fourier function unequivocally
 indicate that house prices are stationary for the nine provinces under
 study. Our test results have important economic and policy implications
 for South Africa.
Journal: Applied Economics 
Pages: 32-53 
Issue: 1 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.959657 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959657 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:32-53




Template-Type: ReDIF-Article 1.0
Author-Name: Riza Emekter 
Author-X-Name-First: Riza 
Author-X-Name-Last: Emekter 
Author-Name: Yanbin Tu 
Author-X-Name-First: Yanbin 
Author-X-Name-Last: Tu 
Author-Name: Benjamas Jirasakuldech 
Author-X-Name-First: Benjamas 
Author-X-Name-Last: Jirasakuldech 
Author-Name: Min Lu 
Author-X-Name-First: Min 
Author-X-Name-Last: Lu 
Title: Evaluating credit risk and loan performance in online Peer-to-Peer (P2P) lending 
Abstract:
 Online Peer-to-Peer (P2P) lending has emerged recently. This micro loan
 market could offer certain benefits to both borrowers and lenders. Using
 data from the Lending Club, which is one of the popular online P2P lending
 houses, this article explores the P2P loan characteristics, evaluates
 their credit risk and measures loan performances. We find that credit
 grade, debt-to-income ratio, FICO score and revolving line utilization
 play an important role in loan defaults. Loans with lower credit grade and
 longer duration are associated with high mortality rate. The result is
 consistent with the Cox Proportional Hazard test which suggests that the
 hazard rate or the likelihood of the loan default increases with the
 credit risk of the borrowers. Finally, we find that higher interest rates
 charged on the high-risk borrowers are not enough to compensate for higher
 probability of the loan default. The Lending Club must find ways to
 attract high FICO score and high-income borrowers in order to sustain
 their businesses.
Journal: Applied Economics 
Pages: 54-70 
Issue: 1 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.962222 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962222 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:54-70




Template-Type: ReDIF-Article 1.0
Author-Name: Maha Khalifa 
Author-X-Name-First: Maha 
Author-X-Name-Last: Khalifa 
Author-Name: Hakim Ben Othman 
Author-X-Name-First: Hakim 
Author-X-Name-Last: Ben Othman 
Title: The effect of conservatism on cost of capital: MENA evidence 
Abstract:
 The purpose of this article is to investigate the economic consequences of
 accounting conservatism in the Middle Eastern and North African (MENA)
 region. In particular, motivated by the lack of such studies in the
 context of emerging countries, we empirically examine the effect of
 conditional conservatism on firms' cost of equity capital. Using a sample
 of firms pertaining to 13 MENA countries during the period 2004-2007, we
 conduct three sets of tests. First, we assess the existence of
 conservatism in our sample following the model of Basu (1997). Second, we
 examine the association between conservatism and cost of equity capital.
 Third, we test the effect of two disaggregated measures of conservatism -
 conservatism with respect to bad news (BNEWS) and conservatism with
 respect to good news (GNEWS) on the cost of equity. Results suggest that,
 overall firms in MENA region adopt conservative reporting. Furthermore, as
 predicted we find a negative association between conditional conservatism
 and the cost of equity capital. This evidence is robust to time series
 changes of variables and cross-country differences. The results also
 report a negative association between the two disaggregated measures of
 conservatism and the cost of equity capital. Our article gives additional
 light on the benefits of accounting conservatism.
Journal: Applied Economics 
Pages: 71-87 
Issue: 1 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.962223 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962223 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:71-87




Template-Type: ReDIF-Article 1.0
Author-Name: Jos頌uis Miralles-Quir󳠍
Author-X-Name-First: Jos頌uis 
Author-X-Name-Last: Miralles-Quir󳠍
Author-Name: Mar𨁤el Mar Miralles-Quir󳠍
Author-X-Name-First: Mar𨁤el Mar 
Author-X-Name-Last: Miralles-Quir󳠍
Author-Name: Julio Daza-Izquierdo 
Author-X-Name-First: Julio 
Author-X-Name-Last: Daza-Izquierdo 
Title: Intraday patterns and trading strategies in the Spanish stock market 
Abstract:
 Different rating and investment companies have recently pointed out
 Spain's brightening growth outlook, which has energized the Spanish stock
 market. By anticipating greater interest in the behaviour of the Spanish
 stock market, we show that the best trading strategy is that in which the
 investor enters long or short after the opening of the New York Stock
 Exchange (NYSE) till the end of the trading day at 17:30. This strategy
 should be complemented with that of entering long or short from the
 opening of the trading day till the closing price before the opening of
 the NYSE in no-coincidence phases.
Journal: Applied Economics 
Pages: 88-99 
Issue: 1 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.962224 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962224 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:88-99




Template-Type: ReDIF-Article 1.0
Author-Name: Hem C. Basnet 
Author-X-Name-First: Hem C. 
Author-X-Name-Last: Basnet 
Author-Name: Subhash C. Sharma 
Author-X-Name-First: Subhash C. 
Author-X-Name-Last: Sharma 
Author-Name: Puneet Vatsa 
Author-X-Name-First: Puneet 
Author-X-Name-Last: Vatsa 
Title: Monetary policy synchronization in the ASEAN-5 region: an exchange rate perspective 
Abstract:
 In light of the long-standing vision of economic and monetary integration
 in the ASEAN (Association of Southeast Asian Nations) region and the
 importance of coordinating monetary policies to achieve it, the objective
 of this article is to assess the monetary policy synchronization among the
 founding members of the ASEAN, that is, Indonesia, Malaysia, the
 Philippines, Singapore and Thailand. Due to the importance of exchange
 rate movements to monetary policies, we approach this issue from a
 currency exchange rate perspective. Specifically, multivariate trend-cycle
 decomposition is employed to investigate common trends and common cycles
 among the exchange rates of these countries during the period 1976-2012.
 Our analysis reveals that the real exchange rates of Malaysia, the
 Philippines, Singapore and Thailand share common cycles in the short term
 and have common trends in the long term, but the Indonesian currency does
 not share these relationships. Thus, our results augur well for the
 synchronization of monetary policies among Malaysia, the Philippines,
 Singapore and Thailand. In contrast, the relatively turbulent dynamics of
 the Indonesian rupiah evident in frequent bouts of stark depreciation
 separated by periods of steady depreciation over the past three decades
 raise questions regarding the readiness of Indonesia for participating in
 a monetary alliance with the ASEAN-4 nations.
Journal: Applied Economics 
Pages: 100-112 
Issue: 1 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.962228 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962228 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:100-112




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani 
Author-X-Name-First: Hamid 
Author-X-Name-Last: Baghestani 
Author-Name: Mohammad Arzaghi 
Author-X-Name-First: Mohammad 
Author-X-Name-Last: Arzaghi 
Author-Name: Ilker Kaya 
Author-X-Name-First: Ilker 
Author-X-Name-Last: Kaya 
Title: On the accuracy of Blue Chip forecasts of interest rates and country risk premiums 
Abstract:
 We examine the accuracy of Blue Chip forecasts of short- and long-term
 interest rates and country risk premiums for the Eurozone and six other
 industrial countries for 1999-2008. In so doing, we utilize comparable
 random walk forecasts as benchmarks. Consistent with the efficient market
 hypothesis, the long-term interest rate forecasts fail to outperform the
 random walk. Our findings on the accuracy of short-term interest rate
 forecasts are, however, mixed. Further results reveal that Blue Chip is
 more (less) accurate in predicting country risk premiums associated with
 short-term (long-term) interest rates. Such evidence is reasonable since
 the short-term country risk premiums contain only the perceived default
 risk, while the long-term risk premiums, in addition, can contain the
 perceived inflation and exchange rate differentials.
Journal: Applied Economics 
Pages: 113-122 
Issue: 2 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.959656 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959656 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:113-122




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Noton 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Noton 
Title: On the size of home bias 
Abstract:
 Home bias in consumption refers to consumers strongly preferring domestic
 over foreign products. However, if the products were to be differentiated,
 would there then be a taste for country of origin? If this were the case,
 what would be the market shares if consumers were to only value prices and
 characteristics and not the brand's nationality? Using a structural
 demand, we account for home bias in the European car market and compute
 the counterfactual market shares in the absence of home bias. We find that
 home-biased preferences explain more than half of the market shares of
 domestic car manufacturers in their domestic markets, limiting the role of
 trade frictions.
Journal: Applied Economics 
Pages: 123-128 
Issue: 2 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.964832 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964832 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:123-128




Template-Type: ReDIF-Article 1.0
Author-Name: Gianfranco Gianfelice 
Author-X-Name-First: Gianfranco 
Author-X-Name-Last: Gianfelice 
Author-Name: Giuseppe Marotta 
Author-X-Name-First: Giuseppe 
Author-X-Name-Last: Marotta 
Author-Name: Costanza Torricelli 
Author-X-Name-First: Costanza 
Author-X-Name-Last: Torricelli 
Title: A liquidity risk index as a regulatory tool for systemically important banks? An empirical assessment across two financial crises 
Abstract:
 We provide an empirical assessment of the suggestion, based on Severo
 (2012), to use a systemic liquidity risk index (SLRI) for estimating
 liquidity premia that could be charged on large banks as a compensation
 for the implicit liquidity support obtained from public authorities
 (Blancher <italic>et al.</italic>, 2013). To this end we compute, over the
 period January 2004-December 2012, a parsimonious and fully documented
 SLRI. We also investigate its statistical significance in explaining the
 level and variability of stock returns for a group of large international
 banks across the subprime and the Eurozone sovereign debt crises. Main
 findings are two: our more parsimonious SLRI is close to Severo's but
 provides a stronger signal of liquidity stress and recovery episodes; we
 consistently fail to detect, within and across the two crises, a stable
 group of banks among the global systemically important ones listed by the
 Financial Stability Board.
Journal: Applied Economics 
Pages: 129-147 
Issue: 2 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.967379 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967379 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:129-147




Template-Type: ReDIF-Article 1.0
Author-Name: Jason Barr 
Author-X-Name-First: Jason 
Author-X-Name-Last: Barr 
Author-Name: Bruce Mizrach 
Author-X-Name-First: Bruce 
Author-X-Name-Last: Mizrach 
Author-Name: Kusum Mundra 
Author-X-Name-First: Kusum 
Author-X-Name-Last: Mundra 
Title: Skyscraper height and the business cycle: separating myth from reality 
Abstract:
 This article is the first to rigorously test how skyscraper height and
 output co-move. Because builders can use their buildings for nonrational
 or nonpecuniary gains, it is widely believed that height competition
 occurs near the business cycle peaks. This would suggest that extreme
 building height is a leading indicator of GDP, since the tallest buildings
 are likely to be completed at or near the peak of a cycle. To test these
 claims, first we look at both the announcement and the completion dates
 for record-breaking buildings and find there is very little correlation
 with the business cycle. Second, cointegration and Granger causality tests
 show that while height and output are cointegrated, height does not
 Granger cause output. These results are robust for the United States,
 Canada, China and Hong Kong.
Journal: Applied Economics 
Pages: 148-160 
Issue: 2 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.967380 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967380 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:148-160




Template-Type: ReDIF-Article 1.0
Author-Name: Joaquim Murillo 
Author-X-Name-First: Joaquim 
Author-X-Name-Last: Murillo 
Author-Name: Javier Roman𓐊Author-X-Name-First: Javier 
Author-X-Name-Last: Roman𓐊Author-Name: Jordi Suri񡣨 
Author-X-Name-First: Jordi 
Author-X-Name-Last: Suri񡣨 
Title: The Business Excellence Attraction Composite Index (BEACI) in small areas. Design and application to the municipalities of the Barcelona province 
Abstract:
 The location of economic activity, in general, and the ones of business
 excellence (high-tech or knowledge-intensive businesses that have a low
 environmental impact), in particular, is not dependent on one single
 factor, but rather on a series of economic, geographical, social and
 political variables. The aim of this article is to design a composite
 index for assessing the capacity to attract this kind of economic activity
 for small areas. As a case study, we have calculated this index for 26 of
 the main municipalities in the province of Barcelona (Spain).
Journal: Applied Economics 
Pages: 161-179 
Issue: 2 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.967381 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967381 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:161-179




Template-Type: ReDIF-Article 1.0
Author-Name: Denise Doiron 
Author-X-Name-First: Denise 
Author-X-Name-Last: Doiron 
Author-Name: Denzil G. Fiebig 
Author-X-Name-First: Denzil G. 
Author-X-Name-Last: Fiebig 
Author-Name: Meliyanni Johar 
Author-X-Name-First: Meliyanni 
Author-X-Name-Last: Johar 
Author-Name: Agne Suziedelyte 
Author-X-Name-First: Agne 
Author-X-Name-Last: Suziedelyte 
Title: Does self-assessed health measure health? 
Abstract:
 Despite concerns about reporting biases and interpretation, self-assessed
 health (SAH) remains the measure of health most used by researchers, in
 part reflecting its ease of collection and in part the observed
 correlation between SAH and objective measures of health. Using a unique
 Australian data set, which consists of survey data linked to
 administrative individual medical records, we present empirical evidence
 demonstrating that SAH indeed predicts future health, as measured by
 hospitalizations, out-of-hospital medical services and prescription drugs.
 Our large sample size allows very disaggregate analysis and we find that
 SAH predicts more serious, chronic illnesses better than less serious
 illnesses. Finally, we compare the predictive power of SAH relative to
 administrative data and an extensive set of self-reported health measures;
 SAH does not add to the predictive power of future utilization when the
 administrative data is included and improves prediction only marginally
 when the extensive survey-based health measures are included. Clearly
 there is value in the more extensive survey and administrative health data
 as well as greater cost of collection.
Journal: Applied Economics 
Pages: 180-194 
Issue: 2 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.967382 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967382 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:180-194




Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore Di Falco 
Author-X-Name-First: Salvatore 
Author-X-Name-Last: Di Falco 
Author-Name: Erwin Bulte 
Author-X-Name-First: Erwin 
Author-X-Name-Last: Bulte 
Title: Does social capital affect investment in human capital? Family ties and schooling decisions 
Abstract:
 We analyse whether traditional sharing norms within kinship networks
 affect education decisions of poor black households in KwaZulu-Natal.
 Theory predicts that the size of the kinship network ambiguously impacts
 on the incentive to invest in human capital (due to opposing 'empathy' and
 'free-rider' effects). Our empirical analysis, based on a range of
 different estimators, suggests the latter effect dominates: forced
 solidarity within the network discourages investments in human capital.
Journal: Applied Economics 
Pages: 195-205 
Issue: 2 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.967383 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967383 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:195-205




Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Patrick T. Kanda 
Author-X-Name-First: Patrick T. 
Author-X-Name-Last: Kanda 
Author-Name: Mampho P. Modise 
Author-X-Name-First: Mampho P. 
Author-X-Name-Last: Modise 
Author-Name: Alessia Paccagnini 
Author-X-Name-First: Alessia 
Author-X-Name-Last: Paccagnini 
Title: DSGE model-based forecasting of modelled and nonmodelled inflation variables in South Africa 
Abstract:
 Inflation forecasts are a key ingredient for monetary policy-making -
 especially in an inflation targeting country such as South Africa.
 Generally, a typical Dynamic Stochastic General Equilibrium (DSGE) only
 includes a core set of variables. As such, other variables, for example
 alternative measures of inflation that might be of interest to
 policy-makers, do not feature in the model. Given this, we implement a
 closed-economy New Keynesian DSGE model-based procedure which includes
 variables that do not explicitly appear in the model. We estimate such a
 model using an in-sample covering 1971Q2 to 1999Q4 and generate recursive
 forecasts over 2000Q1 to 2011Q4. The hybrid DSGE performs extremely well
 in forecasting inflation variables (both core and nonmodelled) in
 comparison with forecasts reported by other models such as AR(1). In
 addition, based on <italic>ex-ante</italic> forecasts over the period
 2012Q1-2013Q4, we find that the DSGE model performs better than the AR(1)
 counterpart in forecasting actual GDP deflator inflation.
Journal: Applied Economics 
Pages: 207-221 
Issue: 3 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.959707 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959707 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:207-221




Template-Type: ReDIF-Article 1.0
Author-Name: Gail Pacheco 
Author-X-Name-First: Gail 
Author-X-Name-Last: Pacheco 
Author-Name: Barrett Owen 
Author-X-Name-First: Barrett 
Author-X-Name-Last: Owen 
Title: Moving through the political participation hierarchy: a focus on personal values 
Abstract:
 This study empirically explores the determinants of political
 participation. Using data from the European Social Survey, we investigate
 the relationship between political participation and personal values,
 using the Schwartz (1992) values inventory. A political participation
 hierarchy is theorized, and activities are categorized into four levels of
 participation (none, weak, medium and strong), based on the cost of
 participating and how unconventional the activity is. Empirical analysis
 points to individuals who are more open to change and more
 self-transcendent, being more likely to participate. Sub-sample analysis,
 contrasting East and West Europe, suggests that the role for personal
 values is more subdued in the East, with respect to moving individuals
 from not participating to at least voting. Furthermore, the use of a
 generalized ordered logit model in this study illustrates the complex
 nature of many of the determinants of political participation. In
 particular, we find that the influence of the majority of individual
 characteristics is not monotonic in nature, as you move up through the
 political participation hierarchy. These findings are important for
 researchers and policy-makers who may be interested in understanding
 determinants of and/or enhancing the level of political participation in
 an economy.
Journal: Applied Economics 
Pages: 222-238 
Issue: 3 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.967384 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967384 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:222-238




Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨁂el鮠Lozano 
Author-X-Name-First: Mar𨁂el鮠
Author-X-Name-Last: Lozano 
Author-Name: Simone Caltabiano 
Author-X-Name-First: Simone 
Author-X-Name-Last: Caltabiano 
Title: Cross institutional cash and dividend policies: focusing on Brazilian firms 
Abstract:
 This article analyses the determinants of cash holding and dividends and
 the relation existing between them in the institutional framework of
 Brazil, an emerging market on the world scenario. It also presents
 specific cultural and institutional characteristics. Through the panel
 data methodology, we show how peculiar the behaviour of Brazilian firms
 is, surprisingly quite different from the traditional theories and
 stereotypes. It was found that they have lower cash holdings and pay
 higher dividends compared to the UK market. In addition, analysis of the
 relation between these two policies showed a positive relation, together
 with other closely related items such as the relevant effect of
 profitability and investment opportunities. All this leads us to confirm
 the importance of the institutional framework in the financial decisions
 taken in the Brazilian market.
Journal: Applied Economics 
Pages: 239-254 
Issue: 3 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.967516 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967516 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:239-254




Template-Type: ReDIF-Article 1.0
Author-Name: Ky-Hyang Yuhn 
Author-X-Name-First: Ky-Hyang 
Author-X-Name-Last: Yuhn 
Author-Name: Sang Bong Kim 
Author-X-Name-First: Sang Bong 
Author-X-Name-Last: Kim 
Author-Name: Joo Ha Nam 
Author-X-Name-First: Joo Ha 
Author-X-Name-Last: Nam 
Title: Bubbles and the Weibull distribution: was there an explosive bubble in US stock prices before the global economic crisis? 
Abstract:
 Existing studies on bubbles have been mainly concerned with investigating
 the stationarity properties of stock prices and market fundamentals. We
 develop a new method of testing for bubbles that relates the bubble
 component of stock prices to the probability of bursting in the context of
 the Weibull distribution. There were several eruptions and subsequent
 collapses of seeming bubbles over the past three decades: 1987 (Black
 Monday), 2000 (information technology (IT) boom) and 2007 (housing market
 boom). Using US monthly data for the S&P 500 and NASDAQ series, we have
 found that the S&P 500 series contained an explosive bubble only during
 the boom of the housing market that occurred before the 2007 global
 economic crisis, and the NASDAQ market contained an explosive bubble
 during the surge of stock prices peaking in 1987 and 2007, although our
 stationarity tests fail to detect the bubbles. No bubble was found in both
 the S&P and NASDAQ series during the 2000 IT boom. Our evidence
 corroborates the criticism that the traditional unit root and
 cointegration tests may not be able to detect some important class of
 bubbles.
Journal: Applied Economics 
Pages: 255-271 
Issue: 3 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.969824 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969824 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:255-271




Template-Type: ReDIF-Article 1.0
Author-Name: Prem G. Mathew 
Author-X-Name-First: Prem G. 
Author-X-Name-Last: Mathew 
Author-Name: H. Semih Yildirim 
Author-X-Name-First: H. Semih 
Author-X-Name-Last: Yildirim 
Title: Does director affiliation lead to analyst bias? 
Abstract:
 This study examines the ability of security analysts to provide objective
 earnings forecasts for firms with which the analyst's brokerage firm has a
 director affiliation. The affiliation that we examine is where the
 brokerage firm has, on its board of directors, a director or an upper
 management individual from the firm which an analyst at the brokerage firm
 provides coverage. We find that affiliated analysts tend to provide
 earnings forecasts that are insignificantly different from unaffiliated
 analysts in terms of accuracy. However, we also find that forecasts
 provided by affiliated analysts tend to be significantly more pessimistic
 than those provided by their unaffiliated counterparts. This pessimistic
 bias in their earnings forecast will more easily allow the covered firm to
 beat earnings expectations when earnings are realized. We find that this
 bias surfaced after the Global Settlement decision, an enforcement
 agreement between large investment banks and the Securities and Exchange
 Commission (SEC) regarding issues surrounding conflicts of interest.
Journal: Applied Economics 
Pages: 272-287 
Issue: 3 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.969825 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969825 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:272-287




Template-Type: ReDIF-Article 1.0
Author-Name: J. Sarmiento-Sabogal 
Author-X-Name-First: J. 
Author-X-Name-Last: Sarmiento-Sabogal 
Author-Name: M. Sadeghi 
Author-X-Name-First: M. 
Author-X-Name-Last: Sadeghi 
Title: Estimating the cost of equity for private firms using accounting fundamentals 
Abstract:
 Finance literature suggests the use of the Accounting Beta (BACC) as a
 proxy for the Capital Asset Pricing Model (CAPM) market beta to estimate
 the cost of equity capital when the stock price is not available. Previous
 researchers have aimed to achieve this objective by determining the
 correlation between accounting variables and the market beta. However, the
 magnitude of the resulting error in this correlation has remained unknown.
 The current study is an attempt to test the performance of the BACC as a
 proxy measure for the market risk and to examine the extent of the
 statistical error in the correlation between these two measures. Our
 findings indicate that BACC overestimates the market beta by between 20%
 and 50%. Applying some corrective measures, such as operational earnings
 scaled by equity, may lessen this difference to a range of 22%-25%;
 however, it does not eliminate the error. Our output also suggests that
 the BACC might be biased when used to assess the risk of small firms.
Journal: Applied Economics 
Pages: 288-301 
Issue: 3 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.969826 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969826 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:288-301




Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Cimini 
Author-X-Name-First: Riccardo 
Author-X-Name-Last: Cimini 
Title: How has the financial crisis affected earnings management? A European study 
Abstract:
 The article aims to investigate whether and how in the European Union
 (EU), the burst of the 2008 financial crisis affected misrepresentation of
 financial information due to earnings management. By analysing a sample of
 11 844 firm-year observations listed in the EU over the period 2006-2012,
 an event study methodology allows us to calculate and compare
 country-by-country abnormal accruals over the estimation period and over
 the event period. Our findings validate our research hypothesis and
 suggest a decrease of misrepresentation in the large majority of the
 European countries after the burst of the financial crisis. The results
 take part in the debate in the accounting literature about the change of
 earnings management over a financial crisis and have several implications
 for standard setters and regulators that could learn how the common
 incentives of entities to attract potential investors during a crisis
 could lead them to provide a high-quality financial reporting.
Journal: Applied Economics 
Pages: 302-317 
Issue: 3 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.969828 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969828 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:302-317




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Mattana 
Author-X-Name-First: Paolo 
Author-X-Name-Last: Mattana 
Author-Name: Filippo Petroni 
Author-X-Name-First: Filippo 
Author-X-Name-Last: Petroni 
Author-Name: Stefania Patrizia Sonia Rossi 
Author-X-Name-First: Stefania Patrizia Sonia 
Author-X-Name-Last: Rossi 
Title: A test for the too-big-to-fail hypothesis for European banks during the financial crisis 
Abstract:
 Motivated by the theoretical prediction of the opportunistic behaviour of
 large banks that face expected public intervention, we test a
 <italic>full</italic> and a <italic>partial</italic> form of the
 too-big-to-fail (TBTF) hypothesis. The full form of the hypothesis implies
 the increase in the risk undertakings <italic>and</italic> profitability
 of banks that exceed a certain dimension; the partial form of the
 hypothesis implies only an augmented risk appetite of large banks compared
 to their smaller counterparts. The examined area is the European banking
 industry, whose behaviour is observed over the first wave of the present
 financial crisis (2007/09). The estimation of a quadratic fit that links
 change in a bank's credit risk profile and profitability retention rates
 with a bank's size suggests the existence of a <italic>partial</italic>
 form of the TBTF hypothesis. However, a more precise, local rolling
 windows estimation of the size sensitivities reveals that large banks -
 those whose liabilities exceed approximately 2% of the country of origin's
 GDP (15% of our sample) - show an increase in credit risk profile and a
 superior capability of retaining higher ROA scores,
 <italic>vis-୶is</italic> their smaller counterparts. With the caveats of
 our investigation, we interpret these results as evidence of a
 <italic>full</italic> form of the TBTF hypothesis.
Journal: Applied Economics 
Pages: 319-332 
Issue: 4 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.959654 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959654 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:319-332




Template-Type: ReDIF-Article 1.0
Author-Name: Gisung Moon 
Author-X-Name-First: Gisung 
Author-X-Name-Last: Moon 
Author-Name: Hongbok Lee 
Author-X-Name-First: Hongbok 
Author-X-Name-Last: Lee 
Author-Name: Doug Waggle 
Author-X-Name-First: Doug 
Author-X-Name-Last: Waggle 
Title: The effect of debt capacity on the long-term stock returns of debt-free firms 
Abstract:
 This article examines the long-term stock market performance of debt-free
 firms with high and low levels of debt capacity to see whether they are
 different. We use Fama and French's (1993) three-factor and Carhart's
 (1997) four-factor models to examine the subsequent 1, 2, 3, 4 and 5-year
 stock returns of firms that stayed debt free for 3- and 5-year periods. We
 measure debt capacity as the expected asset liquidation value of a firm,
 which is proxied by the firm-level tangibility measure defined by Berger,
 Ofek, and Swary (1996). We find that regardless of the level of debt
 capacity, zero-debt firms generate positive abnormal returns in the long
 run after controlling for key risk factors. We also find support for the
 notion that preserving debt capacity in the form of higher tangibility
 reinforces the positive abnormal returns over and above the effect of a
 zero-leverage policy.
Journal: Applied Economics 
Pages: 333-345 
Issue: 4 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.959655 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959655 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:333-345




Template-Type: ReDIF-Article 1.0
Author-Name: Stephanie Parsons 
Author-X-Name-First: Stephanie 
Author-X-Name-Last: Parsons 
Author-Name: Nicholas Rohde 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Rohde 
Title: The hot hand fallacy re-examined: new evidence from the English Premier League 
Abstract:
 Previous studies have illustrated human misperceptions of randomness and
 resultant suboptimal decision-making with reference to the 'hot hand' or
 momentum effect in sport, the notion of serial dependency between
 outcomes. However, issues of omitted variables bias have plagued many due
 to a reliance on nonparametric techniques or basic regression models. This
 article examines across-game and within-game momentum in the English
 Premier League (EPL) football competition using fixed effects regressions
 to control for time-invariant heterogeneity in conjunction with
 traditional nonparametric techniques. Although the results show evidence
 of performance reversal following winning streaks, no such evidence is
 found for streaks of draws or losses or in goal-scoring performance within
 games. This suggests that momentum is better suited as a post hoc label of
 performance than a robust causal phenomenon.
Journal: Applied Economics 
Pages: 346-357 
Issue: 4 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.969830 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969830 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:346-357




Template-Type: ReDIF-Article 1.0
Author-Name: Minjung Kang 
Author-X-Name-First: Minjung 
Author-X-Name-Last: Kang 
Author-Name: Jin Wook Kim 
Author-X-Name-First: Jin Wook 
Author-X-Name-Last: Kim 
Author-Name: Ho-Young Lee 
Author-X-Name-First: Ho-Young 
Author-X-Name-Last: Lee 
Author-Name: Myung-Gun Lee 
Author-X-Name-First: Myung-Gun 
Author-X-Name-Last: Lee 
Title: Financial statement comparability and audit efficiency: evidence from South Korea 
Abstract:
 In this study, we examine the effect of financial statement comparability
 on audit hours, which we use as a proxy for audit efficiency. We examine
 the hours worked by auditors in completing 2322 audits in Korea between
 2006 and 2010. Audit efficiency can be determined by the total audit
 effort required to achieve a successful audit. Using a sample consisting
 of firms maintaining a certain level of audit quality, we investigate
 whether financial statement comparability reduces audit hours. We find
 that comparability is negatively associated with audit hours. In addition,
 we find that the effect of comparability on audit hours is attenuated for
 firms that are 'highly followed' by financial analysts. This study
 contributes to the literature by proposing a possible way to improve audit
 efficiency from a unique perspective. While prior studies show that a
 client's inherent risk and control risk lower audit efficiency, the
 results of this study show that comparability between financial statements
 facilitates audit efficiency. Improvements in audit efficiency reduce the
 opportunity costs associated with audit effort and thereby enable auditors
 to spend more time and effort focusing on high-risk engagements.
 Comparability is one of four qualitative characteristics of accounting
 information included in accounting conceptual frameworks. Despite the
 importance of comparability, there is very little research on its
 benefits. This study makes a unique contribution by measuring audit effort
 using a large database of audit hours worked by auditors in Korean firms.
Journal: Applied Economics 
Pages: 358-373 
Issue: 4 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.972543 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972543 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:358-373




Template-Type: ReDIF-Article 1.0
Author-Name: K. Khang 
Author-X-Name-First: K. 
Author-X-Name-Last: Khang 
Author-Name: T. D. King 
Author-X-Name-First: T. D. 
Author-X-Name-Last: King 
Title: Capital market access and corporate loan structure 
Abstract:
 In this article, we use a sample of 14 075 loan packages issued between
 1993 and 2007 to examine if borrower access to external capital markets
 influences corporate loan structure. We classify firms into three access
 categories: private, unrated public and rated public. Private firms have
 the lowest access, and to date, no large sample investigation of their
 loans has been done in the literature. Rated public firms access the
 capital markets the most. We find the level of access influences loan
 structure in ways that are consistent with having greater or fewer
 financing alternatives, as well as theories on information asymmetry,
 agency and monitoring. In particular, loans to firms with higher levels of
 access have shorter maturities, fewer loan facilities per package, and a
 lower probability of being secured. We also find that a higher level of
 access results in a higher incidence of single-lender loans, but among
 multiple-lender loans, it leads to a larger number of lenders.
 Furthermore, we find evidence that access affects financial covenants in a
 nonmonotonic manner. Finally, lender type and economic conditions
 influence loan structure. Our results are robust to endogeneity caused by
 simultaneity of contract terms and rating.
Journal: Applied Economics 
Pages: 374-397 
Issue: 4 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.972544 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972544 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:374-397




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Author-Name: John Vaz 
Author-X-Name-First: John 
Author-X-Name-Last: Vaz 
Title: Why is it so difficult to outperform the random walk? An application of the Meese-Rogoff puzzle to stock prices 
Abstract:
 Some economists suggest that the Meese-Rogoff puzzle is equally applicable
 to the stock market, in the sense that no model of stock prices can
 outperform the random walk in out-of-sample forecasting. We argue that
 this is not a puzzle and that we should expect nothing, but this result if
 forecasting accuracy is measured by the root mean square error (RMSE) and
 similar metrics that take into account the magnitude of the forecasting
 error only. We demonstrate by using two models for dividend-paying and
 nondividend-paying stocks that as price volatility rises, the RMSE of the
 random walk rises, but the RMSE of the model rises even more rapidly,
 making it unlikely for the model to outperform the random walk.
Journal: Applied Economics 
Pages: 398-407 
Issue: 4 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.972545 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972545 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:398-407




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Wagner 
Title: Credit constraints and margins of import: first evidence for German manufacturing enterprises 
Abstract:
 This study uses tailor-made enterprise-level data for 2008-2010 from
 various sources for firms from manufacturing industries to test for the
 link between credit constraints, measured by a credit rating score
 provided by a leading credit rating agency, and imports in Germany for the
 first time. We find empirical evidence that a better credit rating score
 is positively related to extensive margins of import - firms with a better
 score have a higher probability to import, they import more goods and they
 source from more countries of origin. The intensive margin of imports -
 the share of imports in total sales - is found not to be related to credit
 constraints.
Journal: Applied Economics 
Pages: 415-430 
Issue: 5 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.969829 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969829 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:415-430




Template-Type: ReDIF-Article 1.0
Author-Name: Vidhura Tennekoon 
Author-X-Name-First: Vidhura 
Author-X-Name-Last: Tennekoon 
Author-Name: Robert Rosenman 
Author-X-Name-First: Robert 
Author-X-Name-Last: Rosenman 
Title: The pot calling the kettle black? A comparison of measures of current tobacco use 
Abstract:
 Researchers often use the discrepancy between self-reported and
 biochemically assessed active smoking status to argue that self-reported
 smoking status is not reliable, ignoring the limitations of biochemically
 assessed measures and treating it as the gold standard in their
 comparisons. Here, we employ econometric techniques to compare the
 accuracy of self-reported and biochemically assessed current tobacco use,
 taking into account measurement errors with both methods. Our approach
 allows estimating and comparing the sensitivity and specificity of each
 measure without directly observing true smoking status. The results,
 robust to several alternative specifications, suggest that there is no
 clear reason to think that one measure dominates the other in accuracy.
Journal: Applied Economics 
Pages: 431-448 
Issue: 5 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.972546 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972546 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:431-448




Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Breuer 
Author-X-Name-First: Wolfgang 
Author-X-Name-Last: Breuer 
Author-Name: Thorsten Hens 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Hens 
Author-Name: Astrid Juliane Salzmann 
Author-X-Name-First: Astrid Juliane 
Author-X-Name-Last: Salzmann 
Author-Name: Mei Wang 
Author-X-Name-First: Mei 
Author-X-Name-Last: Wang 
Title: On the determinants of household debt maturity choice 
Abstract:
 This article jointly analyses a behavioural and a cultural concept to
 explain household debt portfolio choice. The behavioural approach explores
 the role of time preferences on household debt maturity in a theoretical
 model and a numerical analysis. We derive a positive relationship between
 the long-term discount factor <italic>&delta;</italic> and the optimal
 maturity of household loans. The cultural approach examines whether
 national culture is a reasonable predictor for household debt maturity. We
 show that culture is an important factor for households' borrowing
 decisions and has even more predictive power than time preferences.
 Countries with higher scores on the Hofstede dimension of long-term
 orientation tend to have shorter household debt maturity. Time preferences
 incur a primarily mediating role, because the effect of national culture
 on the borrowing decision is reduced, as the long-term discount factor
 <italic>&delta;</italic> increases.
Journal: Applied Economics 
Pages: 449-465 
Issue: 5 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.972547 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972547 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:449-465




Template-Type: ReDIF-Article 1.0
Author-Name: Jos順鬩x Sanz-Sanz 
Author-X-Name-First: Jos順鬩x 
Author-X-Name-Last: Sanz-Sanz 
Author-Name: Mar𨁁rrazola-Vacas 
Author-X-Name-First: Mar𨀍
Author-X-Name-Last: Arrazola-Vacas 
Author-Name: Nuria Rueda-L󰥺 
Author-X-Name-First: Nuria 
Author-X-Name-Last: Rueda-L󰥺 
Author-Name: Desiderio Romero-Jordᮠ
Author-X-Name-First: Desiderio 
Author-X-Name-Last: Romero-Jordᮠ
Title: Reported gross income and marginal tax rates: estimation of the behavioural reactions of Spanish taxpayers 
Abstract:
 This article estimates, for the Spanish personal income tax, the
 elasticity of reported gross income to marginal tax rates. The
 identification of this elasticity has been performed using the reform
 approved by Law 35/2006, which came into force in January 2007. The
 elasticities obtained suggest the existence of important efficiency costs,
 with significant regional differences. The average elasticity estimated
 for Spain as a whole is 0.676. However, this elasticity is highly
 dispersed throughout the Spanish administrative regions, which indicates
 the unequal power of distortion of the tax. Thus, households whose
 principal source of income is salary display an elasticity of 0.337,
 compared to 0.682 for households whose main income source comes from
 business or savings. Lastly, a positive correlation is also detected
 between elasticity and income level: an elasticity of 3.6 is reached for
 taxpayers with an annual gross income exceeding 100000&euro;.
Journal: Applied Economics 
Pages: 466-484 
Issue: 5 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.972548 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972548 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:466-484




Template-Type: ReDIF-Article 1.0
Author-Name: Peyman Khezr 
Author-X-Name-First: Peyman 
Author-X-Name-Last: Khezr 
Title: Time on the market and price change: the case of Sydney housing market 
Abstract:
 This article is an empirical study of characteristics related to
 residential properties sold in Sydney, Australia. We use comprehensive
 data on the Sydney housing market composed of 25489 observations for
 properties sold in the Sydney region in 2011. We consider the fact that
 both the seller of the property and the real estate agent have a common
 goal: to sell the property at the highest possible price in the shortest
 amount of time. The analysis is divided into two major parts. First, we
 estimate a two-stage least square model to analyse which parameters affect
 time on the market for a property. Second, we propose a probit model that
 estimates the parameters that affect a revision in list prices. The
 results contribute to the existing literature on the Australian housing
 market by extending understandings about the parameters that could affect
 the time on the market of properties and the revision of their list
 prices.
Journal: Applied Economics 
Pages: 485-498 
Issue: 5 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.972549 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972549 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:485-498




Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Gerdesmeier 
Author-X-Name-First: Dieter 
Author-X-Name-Last: Gerdesmeier 
Author-Name: Andreja Lenar&#x10d;i&#x10d; 
Author-X-Name-First: Andreja 
Author-X-Name-Last: Lenar&#x10d;i&#x10d; 
Author-Name: Barbara Roffia 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Roffia 
Title: An alternative method for identifying booms and busts in the Euro area housing market 
Abstract:
 This article develops a model-based method to detect booms and busts in
 the Euro area housing market. A model is constructed and tested, whereby
 the user cost rate, a demographic variable, unemployment rate, disposable
 income, debt-to-income ratio and housing stock are fundamental variables
 significantly explaining house price (HP) developments. Booms/busts are
 identified as episodes when the HP index exceeds the levels implied by
 those economic fundamentals. Furthermore, a cross-check with boom/bust
 episodes based on other methods is carried out to substantiate the
 results, while the ability of the model in predicting booms/busts in real
 time is also tested.
Journal: Applied Economics 
Pages: 499-518 
Issue: 5 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.975328 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:499-518




Template-Type: ReDIF-Article 1.0
Author-Name: Yuri Mansury 
Author-X-Name-First: Yuri 
Author-X-Name-Last: Mansury 
Author-Name: Wook Sohn 
Author-X-Name-First: Wook 
Author-X-Name-Last: Sohn 
Title: Are financial activities harmful for regional growth? Contradictory evidence from the Indonesian panel data 
Abstract:
 Using high-frequency panel data for Indonesian provinces, we find that
 financial activities are associated with slower growth rates of
 productivity and output per capita. In particular, bank credit alone
 appears to inhibit growth more than the impact of credit and financial
 savings combined. This result contrasts starkly with the evidence from
 low-frequency panel, where the estimates suggest that bank credit promotes
 faster productivity and higher growth of per capita output. The
 contradictory evidence is attributable to the nonlinear growth dynamics of
 the finance-output nexus, where credit inhibits growth in the short run
 and promotes growth over the longer haul.
Journal: Applied Economics 
Pages: 519-530 
Issue: 5 
Volume: 47 
Year: 2015 
Month: 1 
X-DOI: 10.1080/00036846.2014.975329 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975329 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:519-530




Template-Type: ReDIF-Article 1.0
Author-Name: Youngho Kang 
Author-X-Name-First: Youngho 
Author-X-Name-Last: Kang 
Title: Trade, labour market rigidity, and aggregate productivity in OECD countries 
Abstract:
 As the economy becomes more open to trade, aggregate productivity can
 increase by driving out the least productive firms (the selection effect).
 Since the selection effect reallocates resources toward the more
 productive firms, this process can be hindered by rigidity in domestic
 labour market institutions. Based on the selection effect by Melitz
 (2003), this article empirically examines how rigidity in labour market
 institutions affects the consequence of trade on aggregate productivity.
 Findings from panel dynamic ordinary least square (DOLS) estimators
 suggest that a high degree of labour market rigidity in an open economy
 reduces Total Factor Productivity (TFP). In particular, in the case of
 extremely high labour market rigidity but low foreign R&D capital stocks,
 openness to trade can cause a country to experience decreasing TFP.
Journal: Applied Economics 
Pages: 531-543 
Issue: 6 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.975330 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975330 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:531-543




Template-Type: ReDIF-Article 1.0
Author-Name: Robert McNown 
Author-X-Name-First: Robert 
Author-X-Name-Last: McNown 
Author-Name: Omar S. Aburizaizah 
Author-X-Name-First: Omar S. 
Author-X-Name-Last: Aburizaizah 
Author-Name: Charles Howe 
Author-X-Name-First: Charles 
Author-X-Name-Last: Howe 
Author-Name: Nathan Adkins 
Author-X-Name-First: Nathan 
Author-X-Name-Last: Adkins 
Title: Forecasting annual water demands dominated by seasonal variations: the case of water demands in Mecca 
Abstract:
 Water usage in Mecca is dominated by trends and cyclical variations in the
 number of foreign pilgrims visiting for the annual Hajj Pilgrimage. Time
 series regressions show that the mean temperature in Mecca at the time of
 the Hajj affects the number of pilgrims, inducing a long-term cyclical
 pattern for this variable and therefore water usage. The cointegrating
 relation between water usage, number of external pilgrims and temperature
 produces long-run forecasts of Mecca water demand.
Journal: Applied Economics 
Pages: 544-552 
Issue: 6 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.975331 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975331 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:544-552




Template-Type: ReDIF-Article 1.0
Author-Name: C鳡r E. Castell󮠍
Author-X-Name-First: C鳡r E. 
Author-X-Name-Last: Castell󮠍
Author-Name: Tullaya Boonsaeng 
Author-X-Name-First: Tullaya 
Author-X-Name-Last: Boonsaeng 
Author-Name: Carlos E. Carpio 
Author-X-Name-First: Carlos E. 
Author-X-Name-Last: Carpio 
Title: Demand system estimation in the absence of price data: an application of Stone-Lewbel price indices 
Abstract:
 This article evaluates the feasibility of estimating a system of demand
 equations in the absence of price information using the approach developed
 by Lewbel (1989). Stone-Lewbel (SL) price indices for commodity groups are
 constructed using information on the budget shares and the Consumer Price
 Indices (CPIs) of the goods comprising the commodity groups, which allows
 for household-level prices to be recovered. This study evaluates how
 susceptible are elasticities and marginal effects estimates from
 traditional parametric demand systems to the CPI used in the construction
 of the SL prices. To do this, three alternative regional CPIs are
 considered for the construction of the SL prices: monthly, quarterly and a
 constant (unity) price index. Elasticities and marginal effect estimates
 are computed for eight food commodity groups using the Exact Affine Stone
 Index (EASI) model as the parametric demand system and data from the
 United States Consumer Expenditure Survey. The estimates proved to be
 robust to the alternative regional CPIs considered in the construction of
 SL price indices, even to the absence of one. Hence, the results suggest
 that it is possible to accurately estimate a demand system even in the
 absence of price information.
Journal: Applied Economics 
Pages: 553-568 
Issue: 6 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.975332 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975332 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:553-568




Template-Type: ReDIF-Article 1.0
Author-Name: Peter C. Dawson 
Author-X-Name-First: Peter C. 
Author-X-Name-Last: Dawson 
Title: The capital asset pricing model in economic perspective 
Abstract:
 The capital asset pricing model (CAPM) is theoretically incomplete in its
 demand-side focus, risk-averse investors and internally inconsistent
 homogeneous beliefs; is not conclusively supported empirically; and yet it
 legitimizes a notion that investors can earn higher returns by bearing
 undiversifiable risk. Our article does not merely extend the CAPM with
 more realistic assumptions, it completes its original framework by
 including (1) risk-taking investors in the investor population, (2)
 investors who can have heterogeneous expectations or beliefs - an
 overlooked but required condition for the CAPM to be an internally
 consistent and meaningful model of <italic>competitive</italic> financial
 asset pricing under <italic>uncertainty</italic> and (3) a positive-sloped
 short-run supply curve based on a reasonable interpretation of the nature
 of financial asset trade. Upon a complete economic interpretation, it is
 shown that the equilibrium (systematic) risk-rate of return relationship
 depends on whose aggregate trading activity dominates, risk-averse or
 risk-taking investors'. There is no universal, or even general, positive
 relationship between systematic risk and rate of return. This has
 far-reaching implications for investors and investment advisors who serve
 them.
Journal: Applied Economics 
Pages: 569-598 
Issue: 6 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.975333 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975333 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:569-598




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Huck 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Huck 
Author-Name: Komivi Afawubo 
Author-X-Name-First: Komivi 
Author-X-Name-Last: Afawubo 
Title: Pairs trading and selection methods: is cointegration superior? 
Abstract:
 Pairs trading is a popular dollar-neutral trading strategy. This article,
 using the components of the S&P 500 index, explores the performance of a
 pairs trading system based on various pairs selection methods. Whereas
 large empirical applications in the literature focus on the distance
 method, this article also deals with well-known statistical and
 econometric techniques such as stationarity and cointegration which make
 the trading system much more demanding from a computational point of view.
 Trades are initiated when stocks deviate from their equilibrium. Our
 results confirm, after controlling for risk and transaction costs, that
 the distance method generates insignificant excess returns. While a pairs
 selection following the stationarity criterion leads to a weak
 performance, this article reveals that cointegration provides a high,
 stable and robust return.
Journal: Applied Economics 
Pages: 599-613 
Issue: 6 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.975417 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975417 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:599-613




Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa 
Author-X-Name-First: Imad A. 
Author-X-Name-Last: Moosa 
Author-Name: George B. Tawadros 
Author-X-Name-First: George B. 
Author-X-Name-Last: Tawadros 
Author-Name: Terry A. Hallahan 
Author-X-Name-First: Terry A. 
Author-X-Name-Last: Hallahan 
Title: The effectiveness of international diversification: whole markets versus sectors 
Abstract:
 A hedging approach is used to examine the effect of sectoral factors on
 the effectiveness of international diversification. By using data covering
 seven countries and various sectors, we find that international
 diversification is more effective when assets from developed markets only
 are used and when multiasset portfolios are used instead two-asset
 portfolios. The results also reveal that international diversification
 across whole markets is more effective than diversification across
 sectors. These results reflect the pattern of return correlation.
Journal: Applied Economics 
Pages: 614-622 
Issue: 6 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.978073 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:614-622




Template-Type: ReDIF-Article 1.0
Author-Name: L. Martin 
Author-X-Name-First: L. 
Author-X-Name-Last: Martin 
Author-Name: N. Omrani 
Author-X-Name-First: N. 
Author-X-Name-Last: Omrani 
Title: An assessment of trends in technology use, innovative work practices and employees' attitudes in Europe 
Abstract:
 Several studies of innovative work practices show a positive link with
 firm performance and employees' task involvement, organizational
 commitment and citizenship behaviours. One of the recent changes faced by
 firms is the introduction of Information and Communication Technologies
 (ICTs). Although several empirical studies analyse the links between ICT
 use, innovative work practices and firm performance, employee-level
 analyses are scarce. Using data from the European Working Condition Survey
 (EWCS), this article investigates the relationships between use of the
 Internet and computers and positive attitudes among employees (social
 support, job satisfaction, extra effort) in the European context. Our
 empirical results are based on data for more than 9500 employees from 16
 European countries in 2005, and more than 14000 in 2010. Among the
 different effects of ICT use, based on the results for the 2005, 2010 and
 the pooled 2005-2010 sample, and in a within-cohorts change analysis, we
 find that Internet use is positively related to employees' job
 satisfaction and extra effort. We find that computer use is not related to
 employees' behaviours. We find also that most of the innovative work
 practices considered are positively related to employees' positive
 attitudes.
Journal: Applied Economics 
Pages: 623-638 
Issue: 6 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.978072 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978072 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:623-638




Template-Type: ReDIF-Article 1.0
Author-Name: Hai Zhong 
Author-X-Name-First: Hai 
Author-X-Name-Last: Zhong 
Title: Does a college education cause better health and health behaviours? 
Abstract:
 In this article, we exploit the recent higher education expansion in China
 to apply a regression discontinuity method to identify the causal effects
 of higher education on health and health behaviours. We do not find causal
 effect of a college education on better smoking and drinking behaviours.
 For our selected measures of health, we do not find causal effect of a
 college education on better self-assessed health, less chance of having
 illness in the past 3 months and keeping normal body weight; however, we
 find that a college education could significantly reduce the probability
 of having hypertension.
Journal: Applied Economics 
Pages: 639-653 
Issue: 7 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.978074 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978074 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:639-653




Template-Type: ReDIF-Article 1.0
Author-Name: Kiho Kwak 
Author-X-Name-First: Kiho 
Author-X-Name-Last: Kwak 
Author-Name: Wonjoon Kim 
Author-X-Name-First: Wonjoon 
Author-X-Name-Last: Kim 
Title: Productivity growth of newly industrializing economies in heterogeneous capital goods markets: the case of the Korean machinery and equipment industry 
Abstract:
 Although many previous studies have investigated the economic growth of
 East Asian countries from the perspective of productivity growth, they
 have adopted a limited focus only on the national level or on the
 aggregated level and have overlooked the heterogeneity at the
 disaggregated level. Furthermore, only a few studies have examined the
 sources of the remarkable growth and trade performance of the Korean
 machinery and equipment industry, despite its importance for sustainable
 growth of national economy. Therefore, we investigated the Total Factor
 Productivity Growth (TFPG) of the Korean machinery and equipment industry
 and its 12 sub-sectors from 1970 to 2012 using the stochastic frontier
 production approach. As a result, we found that the industry has achieved
 labour input-driven TFPG largely due to technical progress. This is
 contrary to the previous result that East Asia has expanded the production
 frontier by capital accumulation. In contrast, in some sub-sectors, scale
 effect and allocation efficiency have driven TFPG. We also found
 distinctive patterns of TFPG across different sub-sectors from the
 perspectives of the effect of input factors and the pattern of technical
 progress. These results imply that policy makers should consider
 industry-specific policy designs that incorporate the specific
 characteristics of individual sub-sectors.
Journal: Applied Economics 
Pages: 654-668 
Issue: 7 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.978075 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:654-668




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Sara砍
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Sara砍
Author-Name: Feyyaz Zeren 
Author-X-Name-First: Feyyaz 
Author-X-Name-Last: Zeren 
Title: The dependency of Islamic bank rates on conventional bank interest rates: further evidence from Turkey 
Abstract:
 The nexus between Islamic banks' returns on term deposits (participation
 accounts) and conventional banks' (CBs) interest rates on term deposits is
 one of the controversies with regard to Islamic finance. The obvious
 correlation between two sides is considered a convergence of Islamic
 banking to the conventional mode and the breach of the 'risk sharing', the
 underlying principle of Islamic finance. The aim of this study is to
 econometrically investigate the long-term relationship between CBs'
 term-deposit rates (TDRs) and participation banks' (PBs) TDR in Turkey. We
 undertake an elaborate analysis of the dependency of each PBs in Turkey on
 interest rates utilizing the most recent econometric techniques including
 <italic>Maki cointegration tests</italic> with multiple breaks and
 <italic>frequency domain causality</italic> tests. Findings show that TDRs
 of three PBs are significantly cointegrated with those of CBs, while one
 is not. In addition, permanent causality is found from CBs to all PBs.
Journal: Applied Economics 
Pages: 669-679 
Issue: 7 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.978076 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:669-679




Template-Type: ReDIF-Article 1.0
Author-Name: Lenka &#x160;&#x165;astn᠍
Author-X-Name-First: Lenka 
Author-X-Name-Last: &#x160;&#x165;astn᠍
Author-Name: Martin Gregor 
Author-X-Name-First: Martin 
Author-X-Name-Last: Gregor 
Title: Public sector efficiency in transition and beyond: evidence from Czech local governments 
Abstract:
 This article provides the first comparison of public sector efficiency in
 and beyond transition. We compare the comprehensive efficiency scores of
 202 local governments in the Czech Republic in the transition period of
 1995-1998 and the post-transition period of 2005-2008 and identify the
 period-specific determinants of local government efficiency. We observe
 convergence to the best practice frontier but also a growing efficiency
 gap between small and large governments. In both periods, municipal size
 and the main fiscal variables qualitatively affect efficiency in the same
 direction and in line with the fiscal stress hypothesis. Left-wing
 ideology is only robustly associated with cost inefficiency in the
 transition period. The geographic distances begin to matter for efficiency
 only in the post-transition period.
Journal: Applied Economics 
Pages: 680-699 
Issue: 7 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.978077 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978077 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:680-699




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Xie 
Author-X-Name-First: Jun 
Author-X-Name-Last: Xie 
Author-Name: Chunpeng Yang 
Author-X-Name-First: Chunpeng 
Author-X-Name-Last: Yang 
Title: Investor sentiment and the financial crisis: a sentiment-based portfolio theory perspective 
Abstract:
 The article proposes a portfolio model subjected to a constraint that
 captures the investor's goal, with maximum estimation of expected return
 that is affected by investor sentiment. And we give a solution of the
 portfolio model by exploring the geometric features. Furthermore, we
 discuss the relationship between investor sentiment and the financial
 crisis by analysing the optimal allocation. The results show that: when
 investor sentiment is low enough, the investor should reject the
 investment, this condition leads the depression financial market to
 prevail, then the financial crisis erupts; when investor sentiment is
 modest, the financial crisis is difficult to erupt unless the decline of
 investor sentiment is quick and deep; but there is a special status that
 the financial crisis is caused by other factors rather than by investor
 sentiment; and only improving investor sentiment cannot move away from the
 financial crisis.
Journal: Applied Economics 
Pages: 700-709 
Issue: 7 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.978078 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:700-709




Template-Type: ReDIF-Article 1.0
Author-Name: Sok Chul Hong 
Author-X-Name-First: Sok Chul 
Author-X-Name-Last: Hong 
Author-Name: Jungmin Lee 
Author-X-Name-First: Jungmin 
Author-X-Name-Last: Lee 
Title: People on the verge of death: evidence from impacts of celebrity suicides 
Abstract:
 We attempt to identify the population who are vulnerable to emotional
 shocks by exploiting an unprecedented series of celebrity suicides in
 South Korea during the last decade, including one of the most famous
 actresses, as well as a former president. Our conservative estimates show
 that for 5 out of 11 celebrity suicides observed, 1 celebrity suicide on
 average yielded to more than 10 excessive suicides per day over a time
 frame of at least 2 weeks. The results indicate that a significant number
 of people are very much mentally unstable to end their life by emotional
 shocks that should be irrelevant to their economic status.
Journal: Applied Economics 
Pages: 710-724 
Issue: 7 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.980571 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980571 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:710-724




Template-Type: ReDIF-Article 1.0
Author-Name: Vikash Ramiah 
Author-X-Name-First: Vikash 
Author-X-Name-Last: Ramiah 
Author-Name: Jacopo Pichelli 
Author-X-Name-First: Jacopo 
Author-X-Name-Last: Pichelli 
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Title: Environmental regulation, the Obama effect and the stock market: some empirical results 
Abstract:
 Following the signing of the Kyoto protocol in 2005, a new wave of green
 policies emerged with the intention of protecting our planet. This study
 explores the effects these policies have on capital markets. In
 particular, we assess how the risk and return of US industrial portfolios
 react to the announcement of green policies. Event study methodology and
 asset pricing models are used to that end. We document negative abnormal
 returns and increase in systematic risk for the biggest polluters whereas
 environmentally friendly businesses are affected to a lesser degree. An
 apparent Obama effect is observed, resulting from the 2008 outcome of the
 US presidential election.
Journal: Applied Economics 
Pages: 725-738 
Issue: 7 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.980572 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980572 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:725-738




Template-Type: ReDIF-Article 1.0
Author-Name: John P. Weche Geluebcke 
Author-X-Name-First: John P. 
Author-X-Name-Last: Weche Geluebcke 
Title: The impact of foreign takeovers: comparative evidence from foreign and domestic acquisitions in Germany 
Abstract:
 This study provides the first evidence of foreign takeover effects on the
 performance of acquired firms in Germany that considers a general takeover
 effect through the comparison with domestic takeovers. A propensity score
 matching approach combined with a difference-in-differences (DiD)
 estimator were performed with new high-quality panel data for
 manufacturing enterprises, provided by German official statistics. The
 results indicate a negative impact of foreign takeovers on employment and
 no productivity improvements for the period 2007-2009. This evidence
 contradicts existing empirical evidence for Germany which suggests
 significant productivity improvements and no changes in terms of
 employment. These findings are of particular interest to Germany as one of
 the most important FDI inflow destinations worldwide. They contribute to
 the foreign ownership performance premium literature as well as improving
 the understanding of foreign acquisition consequences, a subject of utmost
 topicality.
Journal: Applied Economics 
Pages: 739-755 
Issue: 8 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.982854 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982854 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:739-755




Template-Type: ReDIF-Article 1.0
Author-Name: Carolina Castilla 
Author-X-Name-First: Carolina 
Author-X-Name-Last: Castilla 
Author-Name: Timothy Haab 
Author-X-Name-First: Timothy 
Author-X-Name-Last: Haab 
Title: Asymmetric search and prospect theory: choice experiment on consumer willingness to search in the gasoline retail market 
Abstract:
 We use an internet survey conducted among a representative random sample
 of drivers in the State of Ohio consisting of a choice experiment designed
 to examine the mechanism driving asymmetric search. The internet survey
 affords us the opportunity to overcome endogeneity difficulties by
 imposing exogenous price changes on gasoline consumers to examine the
 decision-making process behind intended search decisions. We randomly
 assigned participants to one of five price treatments (either 2.5 or 5%
 above or below their reported expected price, or no change). We provide a
 simple empirical model to derive testable implications under prospect
 theory and use the internet survey to test them. Results indicate that
 among the respondents who faced prices below their expected price, only
 12% chose to search, whereas 45% searched when prices were above. Further,
 we find results consistent with asymmetric search being driven by prospect
 theory. The change in consumers' willingness to search is twice as large
 when prices exceed expectations by 2.5% relative to when prices exceed
 them by 5% suggesting that consumers derive utility of finding a good deal
 evaluated relative to a reference price. We show that this result is
 inconsistent with standard utility theory or consumers using alternative
 reference prices.
Journal: Applied Economics 
Pages: 756-778 
Issue: 8 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.980573 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980573 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:756-778




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Apergis 
Author-Name: Michael L. Polemis 
Author-X-Name-First: Michael L. 
Author-X-Name-Last: Polemis 
Title: The competitive conditions in the OECD manufacturing industry 
Abstract:
 The goal of this study was to assess the intensity of competition in the
 OECD manufacturing industry by using the Panzar and Rosse index over the
 period 1970-2011. For this purpose, we use the fully modified OLS method
 and second-generation unit root analysis to investigate the level of
 competition across two-digit manufacturing sectors. The results are robust
 and consistent with similar studies, leading to the rejection of perfect
 collusion and perfect competition, while providing evidence in favour of
 monopolistic competition. Similarly to other empirical studies,
 <italic>H</italic>-statistics are shown to be heterogeneous across
 manufacturing sectors. We argue that more concentrated sectors such as
 food and beverages, motor vehicles and furniture have low levels of
 <italic>H</italic>-statistic being thus less competitive than other
 industries (i.e. computers transportation equipment, printing and
 chemicals), where the <italic>H</italic>-statistic is closer to unity.
 Lastly, our analysis will be a useful policy tool to achieve structural
 micro-economic goals.
Journal: Applied Economics 
Pages: 779-797 
Issue: 8 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.980574 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980574 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:779-797




Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Luis A. Gil-Alana 
Author-X-Name-First: Luis A. 
Author-X-Name-Last: Gil-Alana 
Author-Name: Olaoluwa S. Yaya 
Author-X-Name-First: Olaoluwa S. 
Author-X-Name-Last: Yaya 
Title: Do sunspot numbers cause global temperatures? Evidence from a frequency domain causality test 
Abstract:
 This article applies the causality test in the frequency domain, developed
 by Breitung and Candelon (2006), to analyse whether sunspot numbers (used
 as a partial approximation to solar irradiance) cause global temperatures,
 using monthly data covering the time period 1880:1-2013:9. While standard
 time domain Granger causality test fails to reject the null hypothesis
 that sunspot numbers do not cause global temperatures for both full and
 sub-samples (identified based on tests of structural breaks), the
 frequency domain causality test detects predictability for both the
 full-sample and the last sub-sample at short (2-2.6 months) and long (10.3
 months and above) cycle lengths, respectively. Our results highlight the
 importance of analysing causality using the frequency domain test, which,
 unlike the time domain Granger causality test, allows us to decompose
 causality by different time horizons, and hence, could detect
 predictability at certain cycle lengths even when the time domain
 causality test might fail to pick up any causality. Further, given the
 widespread discussion in the literature, those results for the full-sample
 causality, irrespective of whether it is in time or frequency domains,
 cannot be relied upon when there are structural breaks present, and one
 needs to draw inference regarding causality from the sub-samples, we can
 conclude that there has been an emergence of causality running from
 sunspot numbers to global temperatures only recently at cycle length of
 10.3 months and above.
Journal: Applied Economics 
Pages: 798-808 
Issue: 8 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.980575 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980575 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:798-808




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Jim M. Mariano 
Author-X-Name-First: Marc Jim M. 
Author-X-Name-Last: Mariano 
Author-Name: James A. Giesecke 
Author-X-Name-First: James A. 
Author-X-Name-Last: Giesecke 
Author-Name: Nhi H. Tran 
Author-X-Name-First: Nhi H. 
Author-X-Name-Last: Tran 
Title: The effects of domestic rice market interventions outside business-as-usual conditions for imported rice prices 
Abstract:
 The Philippine government intervenes in the domestic rice market through
 the imposition of import tariffs and the provision of producer and
 consumer subsidies. While policymakers are aware that these programmes
 come with allocative efficiency costs, they justify the programmes on the
 grounds that they insulate the domestic economy from unexpected price
 spikes in the international rice market. An interesting matter for policy
 evaluation is to quantify the insulation benefit that the programmes
 provide in circumstances of sudden severe import price spikes. To examine
 this question, we undertake a dynamic computable general equilibrium (CGE)
 simulation in which the Philippines is subject to an external rice price
 shock. We find that the insulation benefit of the support programmes under
 a 2008-like event is worth approximately 0.10% of real consumption.
 However, the cost of insuring against these price spikes is significant.
 We estimate the annual cost of the rice market interventions at
 approximately 0.40% of real consumption.
Journal: Applied Economics 
Pages: 809-832 
Issue: 8 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.980576 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980576 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:809-832




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Hagemejer 
Author-X-Name-First: Jan 
Author-X-Name-Last: Hagemejer 
Author-Name: Krzysztof Makarski 
Author-X-Name-First: Krzysztof 
Author-X-Name-Last: Makarski 
Author-Name: Joanna Tyrowicz 
Author-X-Name-First: Joanna 
Author-X-Name-Last: Tyrowicz 
Title: Unprivatizing the pension system: the case of Poland 
Abstract:
 In many countries, the fiscal tension associated with the global financial
 crisis brings about the discussion about unprivatizing the social security
 system. This article employs an Overlapping Generations model to assess
 <italic>ex ante</italic> the effects of such changes to the pension reform
 in Poland from 1999 as implemented in 2011 and in 2013. We simulate the
 behaviour of the economy without the implemented/proposed changes and
 compare it to a <italic>status quo</italic> defined by the reform from
 1999. We find that the changes implemented in 2011 and in 2013 are
 detrimental to welfare. The effects on capital and output are small and
 depend on the selected fiscal closure. Implied effective replacement rates
 are lower. These findings are robust to time inconsistency. The
 shortsightedness of the governments imposes welfare costs.
Journal: Applied Economics 
Pages: 833-852 
Issue: 8 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.980577 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980577 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:833-852




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Bollen 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Bollen 
Title: What should the value of lambda be in the exponentially weighted moving average volatility model? 
Abstract:
 Forecasting volatility is fundamental to forecasting parametric models of
 value-at-risk. The exponentially weighted moving average (EWMA) volatility
 model is the recommended model for forecasting volatility by the
 Riskmetrics group. For monthly data, the lambda parameter of the EWMA
 model is recommended to be set to 0.97. In this study, we empirically
 investigate if this is the optimal value of lambda in terms of forecasting
 volatility. Employing monthly realized volatility as the benchmark for
 testing the value of lambda, it is found that a value of lambda of 0.97 is
 far from optimal. The tests are robust to a variety of test statistics. It
 is further found that the optimal value of lambda is time varying and
 should be based upon recent historical data. The article offers a
 practical method to increase the reliability and accuracy of value-at-risk
 forecasts that can be easily implemented within an Excel spreadsheet.
Journal: Applied Economics 
Pages: 853-860 
Issue: 8 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.982853 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982853 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:853-860




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Apergis 
Author-Name: Arusha Cooray 
Author-X-Name-First: Arusha 
Author-X-Name-Last: Cooray 
Title: The dynamics of Greek public debt - evidence from simultaneous and structural VAR models 
Abstract:
 The goal of the present article was to investigate not only the dynamics
 of the Greek public debt, but also the appropriate measures required for
 achieving fiscal consolidation. The empirical estimation is carried out
 using a macroeconomic data set spanning the period 1980-2008 and both the
 three-stage least squares (3SLS) methodological approach on a theoretical
 model and the structural VAR methodology to perform forecast tests and to
 calibrate the future paths of the public debt variable up to 2020. The
 results suggest that only a restrictive fiscal policy that simultaneously
 increases government revenues and reduces government expenditure could
 permit the country to achieve debt sustainability. The results also
 suggest that debt sustainability can be achieved faster when tax revenue
 policies are intensified. The results are expected to have important
 implications to policymakers for designing effective macroeconomic policy
 in terms of achieving sustainable levels of public debt.
Journal: Applied Economics 
Pages: 967-980 
Issue: 10 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.985372 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985372 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:967-980




Template-Type: ReDIF-Article 1.0
Author-Name: Fran篩s-&Eacute;ric Racicot 
Author-X-Name-First: Fran篩s-&Eacute;ric 
Author-X-Name-Last: Racicot 
Title: Engineering robust instruments for GMM estimation of panel data regression models with errors in variables: a note 
Abstract:
 Econometricians have long recognized the need to account in some way for
 measurement errors, specification errors and endogeneity to ensure that
 the ordinary least squares estimator is consistent. This article
 introduces a new generalized method of moments estimator that relies on
 robust instruments to estimate panel data regression models containing
 errors in variables. We show how this GMM approach can be generalized for
 the panel data framework using higher moments and cumulants as
 instruments. The new instruments, engineered for greater robustness, are
 proposed to tackle the pervasive problem of weak instruments.
Journal: Applied Economics 
Pages: 981-989 
Issue: 10 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.985373 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985373 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:981-989




Template-Type: ReDIF-Article 1.0
Author-Name: Lars P. Feld 
Author-X-Name-First: Lars P. 
Author-X-Name-Last: Feld 
Author-Name: Sarah Necker 
Author-X-Name-First: Sarah 
Author-X-Name-Last: Necker 
Author-Name: Bruno S. Frey 
Author-X-Name-First: Bruno S. 
Author-X-Name-Last: Frey 
Title: Happiness of economists 
Abstract:
 We study the importance of economists' professional situation towards
 their life satisfaction based on a unique survey of mostly academic
 economists. On average, economists report to be highly happy with life.
 Satisfaction is positively related to spending more time on doing
 research. The lack of a tenured position decreases satisfaction. However,
 the extent to which the uncertainty created by the tenure system affects
 satisfaction varies with the contract terms. The effect is stronger if the
 contract expires in the near future or cannot be extended. Publication
 success has no effect if it is controlled for academic rank and the
 contract duration. The finding suggests that publications are rather a
 means to an end, for example, to acquire a tenured position. While the
 perceived level of external pressure also has no impact, the perceived
 change of pressure in recent years is positively related to economists'
 life satisfaction. An explanation is that economists have accepted a high
 level of pressure when entering academia but are not willing to cope with
 the recent increase.
Journal: Applied Economics 
Pages: 990-1007 
Issue: 10 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.985374 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985374 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:990-1007




Template-Type: ReDIF-Article 1.0
Author-Name: Agne Suziedelyte 
Author-X-Name-First: Agne 
Author-X-Name-Last: Suziedelyte 
Title: The effects of old and new media on children's weight 
Abstract:
 Childhood obesity rates have recently been rising in many countries. It
 has been suggested in the literature that changes in children's media
 exposure may contribute to explaining this trend. I investigate whether or
 not this hypothesis is supported by data. I contribute to the literature
 by focusing not only on television but also on new media - computers and
 video games. The Child Development Supplement to the Panel Study of Income
 Dynamics is used for the analysis. To address the endogeneity of
 children's media exposure, I use dynamic and panel data models. This is
 another improvement upon the existing literature. Additionally, an
 extensive list of control variables is included in the regressions. I find
 that video game playing or computer use has no effect on children's body
 weight. On the other hand, television viewing may increase children's body
 weight slightly.
Journal: Applied Economics 
Pages: 1008-1018 
Issue: 10 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.987916 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987916 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:1008-1018




Template-Type: ReDIF-Article 1.0
Author-Name: B. Dima 
Author-X-Name-First: B. 
Author-X-Name-Last: Dima 
Author-Name: &#x15e;.M. Dima 
Author-X-Name-First: &#x15e;.M. 
Author-X-Name-Last: Dima 
Author-Name: F. Barna 
Author-X-Name-First: F. 
Author-X-Name-Last: Barna 
Title: A wavelet analysis of capital markets' integration in Latin America 
Abstract:
 The continuous wavelet transform analysis may provide a rich and flexible
 framework for the analysis of time series which exhibit less stable
 statistical properties, such as the ones describing the dynamic trajectory
 of capital markets. In contrast to the Fourier analysis, wavelet transform
 preserves information on both time and frequency. We provide a summary of
 the most important features of this framework. By involving the concept of
 coherence as well as its partial and multiple forms, we analyse the
 connections between Santiago Stock Exchange, Mexican Stock Exchange and
 BM&FBOVESPA S&atilde;o Paulo Stock Exchange, for a time span which covers
 the 23 September 2003-12 March 2014 period. We highlight the existence of
 several significant forces of regional integration and of a short- to
 medium-run synchronization process between these markets. We conclude that
 deeper structural and institutional reforms are required in order to
 enhance the sustainable development and more profound integration of these
 markets.
Journal: Applied Economics 
Pages: 1019-1036 
Issue: 10 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.987917 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987917 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:1019-1036




Template-Type: ReDIF-Article 1.0
Author-Name: Jos頌󰥺-Gracia 
Author-X-Name-First: Jos頍
Author-X-Name-Last: L󰥺-Gracia 
Author-Name: Francisco Sogorb-Mira 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Sogorb-Mira 
Title: Financial constraints and cash-cash flow sensitivity 
Abstract:
 This article explores the cash-cash flow relationship by comparing
 financially constrained and financially unconstrained companies. Unlike
 previous research, we test the sensitivity of cash to cash flow by
 considering unlisted firms as constrained and listed firms as
 unconstrained. Our empirical evidence is based on findings from Spanish
 firms and is consistent with the core rationale that unlisted firms face
 more difficulties than their listed counterparts when looking for funding
 from external markets. As a result, unlisted firms tend to hoard
 significant amounts of cash out of the generated cash flow, while listed
 firms do not. Our findings are robust to a number of additional empirical
 tests.
Journal: Applied Economics 
Pages: 1037-1049 
Issue: 10 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.987918 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987918 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:1037-1049




Template-Type: ReDIF-Article 1.0
Author-Name: Piet Eichholtz 
Author-X-Name-First: Piet 
Author-X-Name-Last: Eichholtz 
Author-Name: Ronald Huisman 
Author-X-Name-First: Ronald 
Author-X-Name-Last: Huisman 
Author-Name: Remco C. J. Zwinkels 
Author-X-Name-First: Remco C. J. 
Author-X-Name-Last: Zwinkels 
Title: Fundamentals or trends? A long-term perspective on house prices 
Abstract:
 Using a long-term time series covering 350 years of house prices along the
 Herengracht in Amsterdam, we examine whether a fundamental factor or a
 trend explains house prices and whether their explanatory power is time
 varying. We find that agents in the housing market switch in their
 formation of expectations about future changes in house prices between
 fundamental and momentum strategies. Specifically, we show that agents
 base their expectations more on fundamentals during economic slowdowns and
 more on recent trends or momentum during economic booms.
Journal: Applied Economics 
Pages: 1050-1059 
Issue: 10 
Volume: 47 
Year: 2015 
Month: 2 
X-DOI: 10.1080/00036846.2014.987919 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987919 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:1050-1059




Template-Type: ReDIF-Article 1.0
Author-Name: Stijn Baert 
Author-X-Name-First: Stijn 
Author-X-Name-Last: Baert 
Author-Name: Elsy Verhofstadt 
Author-X-Name-First: Elsy 
Author-X-Name-Last: Verhofstadt 
Title: Labour market discrimination against former juvenile delinquents: evidence from a field experiment 
Abstract:
 In view of policy action to integrate ex-offenders into society, it is
 important to identify the underlying mechanisms of the negative
 relationship between criminal record on the one hand and later employment
 and earnings on the other hand. In this study, we identify hiring
 discrimination against former juvenile delinquents in a direct way. To
 this end, we conduct a field experiment in the Belgian labour market. We
 find that labour market discrimination is indeed a major barrier in the
 transition to work for former juvenile delinquents. Labour market entrants
 disclosing a history of juvenile delinquency get about 22% less callback
 compared to their counterparts without a criminal record. This
 discrimination is heterogeneous by the occupation for which one applies.
Journal: Applied Economics 
Pages: 1061-1072 
Issue: 11 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.990620 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990620 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1061-1072




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Feeny 
Author-X-Name-First: Simon 
Author-X-Name-Last: Feeny 
Author-Name: Alberto Posso 
Author-X-Name-First: Alberto 
Author-X-Name-Last: Posso 
Author-Name: Jonathan Regan-Beasley 
Author-X-Name-First: Jonathan 
Author-X-Name-Last: Regan-Beasley 
Title: Handle with care: fragile states and the determinants of fragility 
Abstract:
 The international community has grave concerns over the capacity of
 so-called 'fragile states' to effectively deliver basic services to their
 people due to their weak policy and institutional environments. This
 article examines the drivers of state fragility. The World Bank and OECD
 definitions of fragility are adopted using the World Bank's Country Policy
 and Institutional Assessment (CPIA) scores. Analysis is conducted on both
 binary measures of fragility and the actual CPIA scores using an array of
 estimation techniques. Findings indicate that democracy, income levels,
 economic growth, levels of education, country size and natural resource
 rents are important determinants of fragility. Unlike other studies,
 findings also suggest that being a Small Island Development State is a
 primary driver of fragility.
Journal: Applied Economics 
Pages: 1073-1085 
Issue: 11 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.990621 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990621 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1073-1085




Template-Type: ReDIF-Article 1.0
Author-Name: Mala Raghavan 
Author-X-Name-First: Mala 
Author-X-Name-Last: Raghavan 
Author-Name: Mardi Dungey 
Author-X-Name-First: Mardi 
Author-X-Name-Last: Dungey 
Title: Should ASEAN-5 monetary policy-makers act pre-emptively against stock market bubbles? 
Abstract:
 Stock market rises and asset price inflation in ASEAN economies have
 raised the question of whether monetary authorities in these economies
 should act pre-emptively against these rising trends to prevent impending
 financial crises. Using structural vector error correction models (SVECMs)
 which incorporate mixed data characteristics, we examine the effects and
 interactions between monetary policy and stock market shocks for
 Singapore, Malaysia, Thailand, Indonesia and the Philippines. The results
 suggest that monetary policy focused on the stock market detracts from
 price stability objectives, in particular because containing a stock
 market bubble may inadvertently depress output and inflation.
Journal: Applied Economics 
Pages: 1086-1105 
Issue: 11 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.990622 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990622 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1086-1105




Template-Type: ReDIF-Article 1.0
Author-Name: Seval Mutlu &Ccedil;amo&#x11f;lu 
Author-X-Name-First: Seval 
Author-X-Name-Last: Mutlu &Ccedil;amo&#x11f;lu 
Author-Name: Teresa Serra 
Author-X-Name-First: Teresa 
Author-X-Name-Last: Serra 
Author-Name: Jos頍. Gil 
Author-X-Name-First: Jos頍. 
Author-X-Name-Last: Gil 
Title: Vertical price transmission in the Turkish poultry market: the avian influenza crisis 
Abstract:
 This article assesses the impact of the Avian Influenza (AI) outbreak in
 the Turkish poultry market by focusing on price transmission at producer
 and retail levels. The relationship and patterns of transmission between
 producer and retail prices are analysed by estimating a Regime-Switching
 Vector Error Correction Model with three regimes. An AI information index
 variable is developed and used to determine regime-switching. Results
 suggest that consumer prices adjust to disequilibrium caused by the AI
 crisis, while producer prices are sticky and slowly responsive.
Journal: Applied Economics 
Pages: 1106-1117 
Issue: 11 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.990623 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990623 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1106-1117




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Matas 
Author-X-Name-First: Anna 
Author-X-Name-Last: Matas 
Author-Name: Jos魌uis Raymond 
Author-X-Name-First: Jos魌uis 
Author-X-Name-Last: Raymond 
Author-Name: Jos魌uis Roig 
Author-X-Name-First: Jos魌uis 
Author-X-Name-Last: Roig 
Title: How market access shapes human capital accumulation in a peripheral country: the case of Spain 
Abstract:
 Human capital endowment is one of the main factors influencing the level
 of development of a region. This article analyses whether remoteness from
 economic activity has a negative effect on human capital accumulation and,
 consequently, on economic development. Making use of microdata, this
 research proves that remoteness from economic activity can explain the
 differences in the level of education observed across Spanish provinces
 over the last 50 years. The effect is significant even when controlling
 for the improvement of education supply. Nonetheless, the accessibility
 effect has been petering out since the 1960s due to decreasing barriers to
 mobility.
Journal: Applied Economics 
Pages: 1118-1132 
Issue: 11 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.990624 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990624 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1118-1132




Template-Type: ReDIF-Article 1.0
Author-Name: Keshab Bhattarai 
Author-X-Name-First: Keshab 
Author-X-Name-Last: Bhattarai 
Title: Financial deepening and economic growth 
Abstract:
 The core of Shapley-Shubik games and general equilibrium models with a
 Venn diagram is applied for a theory on the role of real finance in
 economic growth among advanced economies. Then the dynamic computable
 general equilibrium (DCGE) models for Germany, France, the UK, Japan and
 the USA are constructed to assess the validity of the over-financing
 hypothesis that has reappeared after the financial crisis of 2008. Actual
 financial deepening ratios observed in the nonconsolidated balance sheet
 of the OECD exceeded by factors of 3.5, 2.4, 5.1, 11.6 and 4.8 than the
 optimal financial deepening ratios implied by DCGE models, respectively,
 in these countries because of excessive leveraging and bubbles up to 19
 times of GDP which were responsible for this great recession. Containing
 such massive fluctuations for macroeconomic stability and growth in these
 economies are not possible in conventional fiscal and monetary policy
 models and require a DCGE analysis like this along with adoption of
 separating equilibrium strategy in line of Miller-Stiglitz-Roth mechanisms
 to avoid problem of asymmetric information in the process of financial
 intermediation so that the gaps between actual and optimal ratios of
 financial deepening remain as small as possible.
Journal: Applied Economics 
Pages: 1133-1150 
Issue: 11 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.993130 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993130 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1133-1150




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Sahar Bahmani 
Author-X-Name-First: Sahar 
Author-X-Name-Last: Bahmani 
Author-Name: Alice Kones 
Author-X-Name-First: Alice 
Author-X-Name-Last: Kones 
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Policy uncertainty and the demand for money in the United Kingdom 
Abstract:
 Limited studies that have assessed the impact of economic uncertainty on
 the demand for money have concentrated on using a volatility measure of
 money supply and output. Certainly, other factors such as regulation,
 taxes, budget deficits, national debt, etc. can contribute to an uncertain
 environment. This new measure of uncertainty, which is called 'policy
 uncertainty', is now constructed for several countries and published. We
 investigate the impact of this new measure on the demand for money in the
 UK and find that it has a negative and significant short-run effect, but
 not any log-run effects.
Journal: Applied Economics 
Pages: 1151-1157 
Issue: 11 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.993138 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1151-1157




Template-Type: ReDIF-Article 1.0
Author-Name: E. De La Poza 
Author-X-Name-First: E. 
Author-X-Name-Last: De La Poza 
Author-Name: L. J󤡲 
Author-X-Name-First: L. 
Author-X-Name-Last: J󤡲 
Author-Name: M.S.S. Alkasadi 
Author-X-Name-First: M.S.S. 
Author-X-Name-Last: Alkasadi 
Title: Modelling the propagation of adult male muscle dysmorphia in Spain: economic, emotional and social drivers 
Abstract:
 Males aged over 40 do more gym practice to improve their body image as a
 way of reinforcing their personal self-esteem and sexual appeal. Cases
 when self-image becomes an obsession may result in a body dysmorphic
 disorder named 'muscle dysmorphia' (MD). The combination of psychological,
 environmental and biological drivers determines the appearance and
 development of this disorder. In this article, we developed a discrete
 population mathematical model to forecast the rate of prevalence of males
 who are noncompetitive bodybuilders at risk of suffering MD in Spain in
 forthcoming years. Economic, emotional, sociological and psychological
 motivations were taken into account to quantify the dynamic behaviour of
 Spanish noncompetitive bodybuilders. The impact of the unemployment is
 reflected in the construction of two coefficients,
 <italic>&alpha;<sub>u</sub></italic> and
 <italic>&alpha;</italic><sub>21</sub>, which explain subpopulation
 transits due to the economy. Sociological influences, such as human
 herding and social propagation, were also considered. Our results predict
 an increase in Spanish noncompetitive bodybuilders suffering MD from 1% in
 2011 to around 11% in 2015. Our model can be applied to any other western
 country where data are available and to another study period when the
 hypotheses are applicable.
Journal: Applied Economics 
Pages: 1159-1169 
Issue: 12 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2013.870657 
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870657 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1159-1169




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Paul Paquin 
Author-X-Name-First: Jean-Paul 
Author-X-Name-Last: Paquin 
Author-Name: Alain Charbonneau 
Author-X-Name-First: Alain 
Author-X-Name-Last: Charbonneau 
Author-Name: David Tessier 
Author-X-Name-First: David 
Author-X-Name-Last: Tessier 
Title: The derivation of the NPV variance of a risky capital investment project with first-order autoregressive cash flows and autoregressive conditional heteroscedastic variances 
Abstract:
 In this article, the authors develop a closed-form solution for assessing
 the capital investment project <italic>NPV</italic> variance when cash
 flows obey a first-order autoregressive process. A distinction is
 established between static and dynamic solutions as the authors focus on
 the case involving partial positive dependence between cash flows. Under a
 Markovian process, the <italic>NPV</italic> solution is stationary in mean
 but not strictly in variance. Constraining the process to become fully
 stationary will overestimate the <italic>NPV</italic> variance. Finally,
 the authors show that the Markovian <italic>NPV</italic> variance
 closed-form solution is robust to the introduction of autoregressive
 conditional heteroscedastic variances complying with a GARCH(1,1) process;
 it will, however, have its value increased and consequently the riskiness
 of the capital investment project.
Journal: Applied Economics 
Pages: 1170-1186 
Issue: 12 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.987915 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987915 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1170-1186




Template-Type: ReDIF-Article 1.0
Author-Name: Yasemin Ulu 
Author-X-Name-First: Yasemin 
Author-X-Name-Last: Ulu 
Title: Rationality of inflation-output forecasts of MMS survey: international evidence 
Abstract:
 We analyse the individual rationality of inflation and output forecasts
 from Money Market Survey (MMS) for a group of G7 countries and EU under
 asymmetric univariate Linlin and Linex loss functions. We also test for
 joint rationality of inflation-output forecasts using the forecast
 rationality test under multivariate asymmetric loss functions proposed by
 Ulu (2013). Our results indicate that rationality is often rejected under
 symmetric loss, and results improve towards rationality when asymmetric
 loss functions are assumed. The assumption of multivariate asymmetric loss
 compared to univariate asymmetric loss provides further evidence towards
 rationality. We also analyse directional forecast accuracy of the
 inflation and output forecasts and find that the inflation-output
 forecasts of MMS are valuable when considered both jointly and separately.
Journal: Applied Economics 
Pages: 1187-1198 
Issue: 12 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.990619 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990619 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1187-1198




Template-Type: ReDIF-Article 1.0
Author-Name: Pradeep Agrawal 
Author-X-Name-First: Pradeep 
Author-X-Name-Last: Agrawal 
Title: India's petroleum demand: estimations and projections 
Abstract:
 Energy security is crucial for sustaining high economic growth in India.
 This article empirically estimates India's long- and short-term demand
 relations for crude oil, diesel and petrol (gasoline) using the ARDL and
 ECM cointegration procedures and then uses them to project demand for
 these products up to 2025 under various scenarios of GDP growth and oil
 prices. Our projections show that over 2012 to 2025, demand is likely to
 increase by about 74% for crude oil, 117% for diesel and 136% for petrol -
 the annual growth rates being about 4.3% for crude oil, 6.1% for diesel
 and 6.8% for petrol (gasoline). This article suggests that India needs to
 (1) take measures to improve efficiency in the use of petroleum products;
 (2) try to enhance supplies such as through production sharing agreements
 by Indian oil companies with other countries and (3) increase the use of
 nuclear, hydro, solar and other alternative energy sources, as Western
 European countries have done.
Journal: Applied Economics 
Pages: 1199-1212 
Issue: 12 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.993131 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993131 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1199-1212




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Alves 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Alves 
Author-Name: Victor Mendes 
Author-X-Name-First: Victor 
Author-X-Name-Last: Mendes 
Author-Name: Paulo Pereira da Silva 
Author-X-Name-First: Paulo 
Author-X-Name-Last: Pereira da Silva 
Title: Do stress tests matter? A study on the impact of the disclosure of stress test results on European financial stocks and CDS markets 
Abstract:
 During the recent sovereign debt crisis, the European Banking Authority
 conducted two stress tests on European banks in order to gauge their
 capital needs, core Tier-1 ratios and ratios of resilience to adverse
 shocks. We assess the informational content of the disclosure of the
 stress test outcomes. We conclude that the stress tests conveyed new
 information and that the outcomes were not anticipated by the stock market
 but were partially anticipated by the credit default swap (CDS) market.
 However, while the stock market reacted to the disclosure of the stress
 test outcomes, in the CDS market there is some evidence of a 'reverse'
 reaction. Moreover, the publication of the outcomes of the stress tests
 had a stronger impact on the stock prices of riskier financial
 institutions. A similar pattern is evident in the CDS market, albeit
 narrowed to one of the stress tests and amid the financial institutions
 with higher perceived credit risk.
Journal: Applied Economics 
Pages: 1213-1229 
Issue: 12 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.993132 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993132 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1213-1229




Template-Type: ReDIF-Article 1.0
Author-Name: Jarrett Hart 
Author-X-Name-First: Jarrett 
Author-X-Name-Last: Hart 
Author-Name: Dragan Miljkovic 
Author-X-Name-First: Dragan 
Author-X-Name-Last: Miljkovic 
Author-Name: Saleem Shaik 
Author-X-Name-First: Saleem 
Author-X-Name-Last: Shaik 
Title: The impact of trade openness on technical efficiency in the agricultural sector of the European Union 
Abstract:
 The aim of this study is to analyse the impact of trade openness on
 technical efficiency of the European Union's (EU) agricultural sector.
 There are no systematic theories linking trade policy to technical
 efficiency; hence, the relation between trade liberalization and technical
 efficiency is fundamentally ambiguous. Stochastic frontier analysis is
 used to model the relationship between EU's production resources and
 agricultural output, as well as the importance of trade openness on
 technical efficiency of a country. The data for 16 of the 28 EU members
 were available for the period 1980-2007 including land, capital,
 fertilizer, labour, agricultural GDP, foreign direct investments (FDI),
 exports and import data. Results indicate that trade openness has an
 immediate, negative impact on efficiency in the EU agricultural sector.
 Over time, however, trade openness does increase efficiency. The FDI
 outflows increase efficiency. This suggests that an initial reduction in
 capital supply forces EU nations to utilize other factor inputs more
 efficiently. However, there is the unexamined potential that over time the
 depletion of capital results in a decrease in efficiency. Finally,
 formerly communist member-countries of the EU are found to have the lowest
 technical efficiency scores whereas Southern European nations have the
 highest efficiency.
Journal: Applied Economics 
Pages: 1230-1247 
Issue: 12 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.993134 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993134 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1230-1247




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Ruixin Zhang 
Author-X-Name-First: Ruixin 
Author-X-Name-Last: Zhang 
Title: On the impact of financial development on income distribution: time-series evidence 
Abstract:
 Financial market development is said to have equalizing or unequalizing
 effects on income distribution. Previous research used cross-sectional and
 panel data and provided mixed results. Suspecting that they suffer from
 aggregation bias, we adhere to time-series data and error-correction
 modeling technique and address the issue one more time in each of the 17
 countries for which we have time-series data. In 10 counties, short-run
 effects of financial market development on income distribution were found
 to be equalizing. In five countries, the effects were unequalizing.
 However, the equalizing effects lasted into the long run only in three
 countries of Denmark, Kenya and Turkey.
Journal: Applied Economics 
Pages: 1248-1271 
Issue: 12 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.993135 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993135 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1248-1271




Template-Type: ReDIF-Article 1.0
Author-Name: Athanasios Koulakiotis 
Author-X-Name-First: Athanasios 
Author-X-Name-Last: Koulakiotis 
Author-Name: Apostolis Kiohos 
Author-X-Name-First: Apostolis 
Author-X-Name-Last: Kiohos 
Author-Name: Vassilios Babalos 
Author-X-Name-First: Vassilios 
Author-X-Name-Last: Babalos 
Title: Exploring the interaction between stock price index and exchange rates: an asymmetric threshold approach 
Abstract:
 This article examines the impact of stock market news on the foreign
 exchange markets of USA, Canada and UK, employing an innovative extension
 of the asymmetric threshold model of Apergis and Miller (2006). Under this
 framework we can disentangle the reaction of foreign exchange market to
 bad or good news and small or large news of stock returns. Our
 comprehensive daily data-set spans the period from January 1990 to June
 2014. Using a cointegration and error correction model, we document the
 existence of a causal relationship between stock market and foreign
 exchange markets. Most interestingly, our results derived from the
 asymmetric threshold model confirm that the relationship between stock and
 foreign exchange markets is sensitive to short-term good or bad news and
 short-term small or large news. Our findings entail significant
 implications for policymakers, governments, risk managers and
 international investors.
Journal: Applied Economics 
Pages: 1273-1285 
Issue: 13 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.990618 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990618 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1273-1285




Template-Type: ReDIF-Article 1.0
Author-Name: Sang Hyeon Lee 
Author-X-Name-First: Sang Hyeon 
Author-X-Name-Last: Lee 
Author-Name: Ji Yong Lee 
Author-X-Name-First: Ji Yong 
Author-X-Name-Last: Lee 
Author-Name: Doo Bong Han 
Author-X-Name-First: Doo Bong 
Author-X-Name-Last: Han 
Author-Name: Rodolfo M. Nayga 
Author-X-Name-First: Rodolfo M. 
Author-X-Name-Last: Nayga 
Title: Are Korean consumers willing to pay a tax for a mandatory BSE testing programme? 
Abstract:
 The outbreaks of mad cow disease (BSE) have significantly increased the
 demand for food safety programs in the Korean beef market. Two issues that
 are getting much attention are about whether Korea should implement
 mandatory testing of slaughtered domestic cattle for BSE and whether
 consumers are willing to pay a tax for the programme. No study, however,
 has examined consumers' willingness to pay (WTP) a tax for a BSE testing
 programme. We conducted a contingent valuation (CV) study using a
 double-bounded dichotomous choice approach to estimate Korean consumers'
 valuation for a mandatory BSE testing programme on slaughtered domestic
 cattle that are 21months or older. Our results show that the
 sample-population adjusted mean estimate of WTP a tax per year is 4482 KRW
 (US $4.01) per household. This suggests that Korean consumers have a
 strong preference for a mandatory testing of domestic cattle for BSE. This
 study also found that Korean consumers' WTP for the programme is greater
 than estimated implementation costs of the programme. These results imply
 that implementing a mandatory BSE testing programme in Korea could confer
 positive consumer welfare.
Journal: Applied Economics 
Pages: 1286-1297 
Issue: 13 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.993137 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993137 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1286-1297




Template-Type: ReDIF-Article 1.0
Author-Name: M. N. Khan 
Author-X-Name-First: M. N. 
Author-X-Name-Last: Khan 
Author-Name: N. Tantisantiwong 
Author-X-Name-First: N. 
Author-X-Name-Last: Tantisantiwong 
Author-Name: S. G. M. Fifield 
Author-X-Name-First: S. G. M. 
Author-X-Name-Last: Fifield 
Author-Name: D. M. Power 
Author-X-Name-First: D. M. 
Author-X-Name-Last: Power 
Title: The relationship between South Asian stock returns and macroeconomic variables 
Abstract:
 This article investigates whether economic variables have explanatory
 power for share returns in South Asian stock markets. In particular, using
 data for four South Asian emerging stock markets over the period
 1998-2012, the article examines the influence of a selection of local,
 regional and global economic variables in explaining equity returns; most
 previous studies that have examined this issue have tended to focus on
 only local and/or global factors. Important factors are identified by
 distilling the macroeconomic variables into principal components. Economic
 activities, real interest rates, real exchange rates and the trade balance
 represent local factors. Regional factors are represented by interregional
 trade and regional economic activity while global factors are represented
 by world financial asset returns and world economic activity. The vector
 autoregression results suggest that the South Asian markets examined are
 not efficient. Both local and regional factors can directly and indirectly
 explain Bangladeshi, Pakistani and Sri Lankan stock returns while the
 lagged returns of the Pakistani stock market and world economic activity
 can explain Indian stock returns.
Journal: Applied Economics 
Pages: 1298-1313 
Issue: 13 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.995360 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995360 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1298-1313




Template-Type: ReDIF-Article 1.0
Author-Name: Anne Boring 
Author-X-Name-First: Anne 
Author-X-Name-Last: Boring 
Title: The impact of patent protection on US pharmaceutical exports to developing countries 
Abstract:
 This article provides evidence that patent protection can have a positive
 effect on trade, by analysing the impact of the implementation of
 intellectual property rights (IPR) in developing countries on the US
 exports of pharmaceutical products, following intense lobbying efforts
 from the US pharmaceutical industry to have the Trade-Related Aspects of
 Intellectual Property Rights (TRIPS) agreement included in the creation of
 the World Trade Organization (WTO). A gravity model using panel data from
 1995 to 2010 suggests that the implementation of minimum standards of
 patent protection has increased US exports of pharmaceuticals to 108
 nonadvanced countries.
Journal: Applied Economics 
Pages: 1314-1330 
Issue: 13 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.995364 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995364 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1314-1330




Template-Type: ReDIF-Article 1.0
Author-Name: Juan A. Correa 
Author-X-Name-First: Juan A. 
Author-X-Name-Last: Correa 
Author-Name: Francisco Parro 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Parro 
Author-Name: Loreto Reyes 
Author-X-Name-First: Loreto 
Author-X-Name-Last: Reyes 
Title: Self-selection in the market of teachers 
Abstract:
 Public school teachers are usually paid according to centralized earning
 schedules, in which their income depends mainly on experience. By
 contrast, in private schools, there is high wage dispersion, and salaries
 correspond mainly to teachers' performance. That dichotomous labour
 regulation encourages teachers with better unobservable skills to
 self-select into private schools because the likelihood of earning higher
 wages is higher than in public schools. The other side of the coin is the
 self-selection of 'bad' teachers into public schools. Using a
 representative sample of Chilean teachers, we estimate a two-sector Roy
 model to test self-selection. We find evidence of negative self-selection
 of teachers into public schools.
Journal: Applied Economics 
Pages: 1331-1349 
Issue: 13 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.995365 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995365 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1331-1349




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin A. Hassett 
Author-X-Name-First: Kevin A. 
Author-X-Name-Last: Hassett 
Author-Name: Aparna Mathur 
Author-X-Name-First: Aparna 
Author-X-Name-Last: Mathur 
Title: A spatial model of corporate tax incidence 
Abstract:
 Using a unique, self-compiled data-set on international tax rates, we
 explore the link between taxes and manufacturing wages for a panel of 66
 countries over 25years. We find, controlling for other macroeconomic
 variables, that wages are significantly responsive to corporate taxation.
 Higher corporate tax rates depress wages. Using spatial modelling
 techniques, we also find that tax characteristics of neighbouring
 countries, whether geographic or economic, have a significant effect on
 domestic wages. We test for, and reject, spatial autocorrelation in our
 model using a modification of the Moran-I test statistic that accounts for
 country-specific fixed effects in a panel data setting. Our article fits
 in with the new economic geography literature as well as the urban
 economics literature which attempt to explain the spatial distribution of
 wages.
Journal: Applied Economics 
Pages: 1350-1365 
Issue: 13 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.995367 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995367 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1350-1365




Template-Type: ReDIF-Article 1.0
Author-Name: Laura Andreu 
Author-X-Name-First: Laura 
Author-X-Name-Last: Andreu 
Author-Name: Jos頌uis Sarto 
Author-X-Name-First: Jos頌uis 
Author-X-Name-Last: Sarto 
Author-Name: Miguel Serrano 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Serrano 
Title: Implications of manager replacement: evidence from the Spanish mutual fund industry 
Abstract:
 We analyse the financial consequences of manager replacement in a sample
 that includes all domestic and European equity funds in Spain.
 Specifically, we examine a total of 104 funds of the sample that
 experience manager turnover over the period 1999-2009. We find that
 underperforming funds in the pre-replacement period experience a
 significant improvement in the excess returns and performance after the
 manager change, an improvement that lasts over time for domestic equity
 funds. The analysis of the risk profile indicates that funds experiencing
 a manager change do not show significantly different levels of risk before
 the replacement dates although they tend to show an increase in the level
 of total risk after the change. Finally, the pool-regression analysis of
 the investment flows confirms that manager changes tend to impact
 negatively on subsequent flows of those funds with manager turnover.
Journal: Applied Economics 
Pages: 1366-1387 
Issue: 13 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.997921 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997921 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1366-1387




Template-Type: ReDIF-Article 1.0
Author-Name: Seth C. Anderson 
Author-X-Name-First: Seth C. 
Author-X-Name-Last: Anderson 
Author-Name: Robert B. Jr Ekelund 
Author-X-Name-First: Robert B. Jr 
Author-X-Name-Last: Ekelund 
Author-Name: John D. Jackson 
Author-X-Name-First: John D. 
Author-X-Name-Last: Jackson 
Author-Name: Robert D. Tollison 
Author-X-Name-First: Robert D. 
Author-X-Name-Last: Tollison 
Title: Are auction revenues affected by rising art buyers' premia? The case of early American art 
Abstract:
 The steady rise in the premiums charged to art buyers at auction (above
 hammer price) has been underway since 1992. This article, using a stable
 and bounded sample of repeat purchase of American works created before
 1950, reveals that this tact has reduced hammer prices for that art.
 However, renewed and hyper-competitive efforts to bring more and higher
 quality art to market by the two main houses, Sotheby's and Christie's,
 have resulted in general profitability. Nevertheless, we calculate that a
 rise in buyers' premia at Sotheby's, a publically traded company, has
 reduced revenues and profits below their potential in the absence of such
 increases.
Journal: Applied Economics 
Pages: 1389-1400 
Issue: 14 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.997926 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997926 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1389-1400




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Homburg 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Homburg 
Title: Critical remarks on Piketty's <italic>Capital in the Twenty-first Century</italic> 
Abstract:
 This article discusses the central macroeconomic claims that are made in
 Thomas Piketty's book <italic>Capital in the Twenty-first
 Century</italic>. The article aims to show that Piketty's contentions are
 not only logically flawed but also contradicted by his own data.
Journal: Applied Economics 
Pages: 1401-1406 
Issue: 14 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.997927 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997927 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1401-1406




Template-Type: ReDIF-Article 1.0
Author-Name: Yuxi Xiao 
Author-X-Name-First: Yuxi 
Author-X-Name-Last: Xiao 
Author-Name: Haizheng Li 
Author-X-Name-First: Haizheng 
Author-X-Name-Last: Li 
Author-Name: Belton M. Fleisher 
Author-X-Name-First: Belton M. 
Author-X-Name-Last: Fleisher 
Title: The earnings effects of health and health-related activities: a panel data approach 
Abstract:
 We investigate the effects of health and health-related habits on earnings
 in China using panel data to control for unobserved heterogeneity related
 to individual traits and job characteristics. Health-related habits
 include smoking cigarettes, drinking tea, frequency of drinking alcohol
 and physical exercising. We find a significant and large impact of health
 status on earnings, controlling for schooling, experience and the
 unobserved individual heterogeneity and job heterogeneity. We also find
 that smoking has a strong negative effect on earnings net of health
 status, while the estimated effects of other health-related activities are
 statistically insignificant.
Journal: Applied Economics 
Pages: 1407-1423 
Issue: 14 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.1000521 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000521 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1407-1423




Template-Type: ReDIF-Article 1.0
Author-Name: Vu Hong Thai Nguyen 
Author-X-Name-First: Vu Hong Thai 
Author-X-Name-Last: Nguyen 
Author-Name: Agyenim Boateng 
Author-X-Name-First: Agyenim 
Author-X-Name-Last: Boateng 
Author-Name: David Newton 
Author-X-Name-First: David 
Author-X-Name-Last: Newton 
Title: Involuntary excess reserves, the reserve requirements and credit rationing in China 
Abstract:
 Using a sample of 95 banks that covers the period 2000-2011, this article
 examines Chinese banks' credit lending behaviour in response to the
 changes in the reserve requirement ratio in the presence of involuntary
 excess reserves (IERs) in the banking system. The study finds that Chinese
 banks with positive IERs one period after a reserve requirement shock
 experience a significantly increased credit supply in response to an
 increase in reserve requirement ratio. However, the reserve requirements
 have no significant impact on the credit supply in Chinese banks that have
 negative IERs one period after a reserve requirement shock. This article
 sheds lights on the effectiveness of Chinese monetary policy, which uses
 reserve requirements as the primary tool to sterilize excess liquidity and
 restrain credit expansion.
Journal: Applied Economics 
Pages: 1424-1437 
Issue: 14 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.995362 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995362 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1424-1437




Template-Type: ReDIF-Article 1.0
Author-Name: Surender Kumar 
Author-X-Name-First: Surender 
Author-X-Name-Last: Kumar 
Author-Name: Hidemichi Fujii 
Author-X-Name-First: Hidemichi 
Author-X-Name-Last: Fujii 
Author-Name: Shunsuke Managi 
Author-X-Name-First: Shunsuke 
Author-X-Name-Last: Managi 
Title: Substitute or complement? Assessing renewable and nonrenewable energy in OECD countries 
Abstract:
 The elasticity of interfuel substitution between renewable and
 nonrenewable energy is key to establishing effective climate change
 policy. This is the first study to estimate the elasticity of substitution
 between different fossil fuels and renewable resources. We used 12
 manufacturing industry-level datasets for the OECD countries from 1995 to
 2009. We found a complementary relationship from nonrenewable energy to
 renewable energy in eight industries, whereas a substitute relationship
 was maintained for four industries. In particular, the food and pulp
 industries had a strong complementary relationship.
Journal: Applied Economics 
Pages: 1438-1459 
Issue: 14 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.997922 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997922 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1438-1459




Template-Type: ReDIF-Article 1.0
Author-Name: Kathryn G. Marshall 
Author-X-Name-First: Kathryn G. 
Author-X-Name-Last: Marshall 
Title: Economic structure and factor payments 
Abstract:
 There is a growing body of evidence that the labour payment share in
 national income varies across countries and over time, suggesting that the
 popular aggregate Cobb-Douglas production function may not capture income
 share dynamics. There remains conflicting evidence on the importance of
 natural resource rents among low income economies and on estimates of the
 rate of return to produced capital. This paper focuses on the structural
 differences among countries, confirming the importance of the agriculture
 sector in estimates of labour and land's share of factor income based on
 81 countries at diverse levels of economic development in the year 2005. I
 find that cross-country data are best modelled by a CES production
 function with an elasticity of substitution of 0.8 and that many low
 income countries have a higher return to capital than the United States.
Journal: Applied Economics 
Pages: 1460-1480 
Issue: 14 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.997924 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997924 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1460-1480




Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Alam᭓abater 
Author-X-Name-First: Luisa 
Author-X-Name-Last: Alam᭓abater 
Author-Name: Laura MᲱuez-Ramos 
Author-X-Name-First: Laura 
Author-X-Name-Last: MᲱuez-Ramos 
Author-Name: Jos頍iguel Navarro-Azor󸀍
Author-X-Name-First: Jos頍iguel 
Author-X-Name-Last: Navarro-Azor󸀍
Author-Name: Celestino SuᲥz-Burguet 
Author-X-Name-First: Celestino 
Author-X-Name-Last: SuᲥz-Burguet 
Title: A two-methodology comparison study of a spatial gravity model in the context of interregional trade flows 
Abstract:
 This article argues that the introduction of spatial interactions to model
 the determinants of origin-destination (OD) flows can potentially result
 in <italic>excessive</italic> contiguity. To explain flows between OD
 regions, it is not only what happens in the origin and destination that is
 relevant, but also what happens in their neighbouring regions. However,
 what happens if there is a high degree of overlap between origin
 neighbouring areas and destination neighbouring areas? The article
 presents an empirical illustration to re-examine the evidence presented in
 previous research (Alam᭓abater <italic>et al.</italic>, 2013) and more
 closely analyses the territorial level, focusing on the case of
 interregional trade of goods at the NUTS3 level (Spanish provinces). We
 then use two different methodologies within the framework of a spatial
 gravity equation for interregional trade modelling. The findings confirm
 the importance of spatial dependence on trade flows and in particular that
 logistics decisions within a province affect shipments from contiguous
 provinces.
Journal: Applied Economics 
Pages: 1481-1493 
Issue: 14 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.997929 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997929 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1481-1493




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Muscettola 
Author-X-Name-First: Marco 
Author-X-Name-Last: Muscettola 
Title: Difficulties for small firms to invest in research prerogatives. An empirical analysis of a sample of Italian firms 
Abstract:
 It is a commonly accepted fact that a quite strong relation exists between
 research investments and the general wealth of a given area. The main goal
 of this study is to analyse and determine which financing sources better
 serve this need for innovation, taking a sample of 1000 private firms in
 current economic downturn. Small firms from Southern Italy often have no
 access to debt capital on nondeterministic research activities, and more
 importantly, it still seems like banks cannot afford to finance these
 kinds of operations, mainly because of their indeterminate nature. This
 research draws the conclusion that only self-evidently solvent firms have
 a chance of getting the financial help needed to innovate.
Journal: Applied Economics 
Pages: 1495-1510 
Issue: 15 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.995363 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995363 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1495-1510




Template-Type: ReDIF-Article 1.0
Author-Name: Hans Bonesrønning 
Author-X-Name-First: Hans 
Author-X-Name-Last: Bonesrønning 
Author-Name: Leiv Opstad 
Author-X-Name-First: Leiv 
Author-X-Name-Last: Opstad 
Title: Can student effort be manipulated? Does it matter? 
Abstract:
 This article provides evidence that college students' effort can be
 manipulated substantially by making changes in the college testing regime
 and moreover that student effort is a meaningful input in education
 production. The evidence comes from a quasi-experiment where a
 mid-semester test with a pass requirement is introduced to a mandatory
 one-semester Business School course in Macroeconomics. Four cohorts of
 students - one before and three after the introduction of the pass
 requirement - have reported their study effort twice during the semester,
 and the relationship between achievement and study effort is investigated
 by using a within-subject within-student across-study periods approach.
Journal: Applied Economics 
Pages: 1511-1524 
Issue: 15 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.997923 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997923 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1511-1524




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio C. David 
Author-X-Name-First: Antonio C. 
Author-X-Name-Last: David 
Author-Name: Montfort Mlachila 
Author-X-Name-First: Montfort 
Author-X-Name-Last: Mlachila 
Author-Name: Ashwin Moheeput 
Author-X-Name-First: Ashwin 
Author-X-Name-Last: Moheeput 
Title: Does international integration matter for financial development in Africa? 
Abstract:
 This article analyses the links between international financial and trade
 integration and financial development in sub-Saharan African (SSA)
 countries. It is based on a panel data set using methods that tackle slope
 heterogeneity, cross-sectional dependence and nonstationarity. The results
 do not point to a general direct robust link between trade and financial
 integration and financial development in SSA, once we control for other
 factors such as GDP per capita and inflation. The findings may be due to a
 number of factors including distortions in domestic financial markets,
 relatively weak institutions and/or poor financial sector supervision. We
 find some indication that financial integration is more important for
 financial development in countries with better institutional quality.
 Stronger scores in some measures of the quality of banking regulation and
 supervision are also linked to a positive association between integration
 and financial development in some of our results. Thus, African
 policy-makers should be cautious about expectations regarding immediate
 gains for financial development from greater international integration.
 Such gains are more likely to occur slowly and through indirect channels.
Journal: Applied Economics 
Pages: 1525-1549 
Issue: 15 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.997925 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997925 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1525-1549




Template-Type: ReDIF-Article 1.0
Author-Name: Heather Mitchell 
Author-X-Name-First: Heather 
Author-X-Name-Last: Mitchell 
Author-Name: Mark Fergusson Stewart 
Author-X-Name-First: Mark Fergusson 
Author-X-Name-Last: Stewart 
Title: What should you pay to host a party? An economic analysis of hosting sports mega-events 
Abstract:
 Governments all over the world put huge amounts of money into bidding for,
 and then hosting, sports events like Football's World Cup or the Olympic
 Games. They also give money to professional sports teams and other
 mega-events to encourage them to locate within a particular constituency.
 This article examines the statistical relationship between tourism and
 three Football World Cups and five Olympic Games, finding very little
 positive effect. Given this conclusion, the article looks at why
 governments continue to bid for these competitions. It presents evidence
 that shows that these sports contests make people happy, and argues that
 politicians capitalize on this feel-good factor; harnessing the hubris
 associated with these events for political gain. The article then contends
 that the best way to reduce the politics associated with bidding for
 mega-events is to allocate them via an auction, rather than the wasteful
 rent-seeking methods that are currently used.
Journal: Applied Economics 
Pages: 1550-1561 
Issue: 15 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.1000522 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000522 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1550-1561




Template-Type: ReDIF-Article 1.0
Author-Name: Taoufik Bouraoui 
Author-X-Name-First: Taoufik 
Author-X-Name-Last: Bouraoui 
Title: The effect of reducing quantitative easing on emerging markets 
Abstract:
 On 22 May and 19 June 2013, the US Federal Reserve (Fed) announced a
 reduction in the asset purchase programme of its quantitative easing
 policy. This article investigates the impact of this news on the
 currencies of emerging markets. Using event study methodology, our results
 report a global significant depreciation in the currencies of all emerging
 markets in our sample, but with different depreciation sizes from one
 market to another. To test whether the depreciation in currencies is
 driven by capital flow components, a regression analysis is performed.
 Inward FDI as well as outward FDI appear to have more explanatory power
 than inward and outward portfolio investment in explaining the impact.
 With the slowdown in asset purchases by the Fed, emerging countries have
 incurred large capital outflows from their markets to the US market,
 resulting in a drop in their currencies.
Journal: Applied Economics 
Pages: 1562-1573 
Issue: 15 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.1000524 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000524 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1562-1573




Template-Type: ReDIF-Article 1.0
Author-Name: Conghui Hu 
Author-X-Name-First: Conghui 
Author-X-Name-Last: Hu 
Author-Name: Xun Zhang 
Author-X-Name-First: Xun 
Author-X-Name-Last: Zhang 
Author-Name: Qiuming Gao 
Author-X-Name-First: Qiuming 
Author-X-Name-Last: Gao 
Title: Synthetic CDO pricing: the perspective of risk integration 
Abstract:
 The underlying asset pool of collateral debt obligations (CDOs)
 simultaneously encompasses credit risk and market risk. However, the
 standard CDO pricing model not only underestimates the risk to the asset
 pool due to a poor description of the correlation structure among obligors
 but is also incapable of reflecting the impacts of interdependent markets,
 credit risks and systematic sudden shocks on the asset pool. This paper
 studies the joint impact of interrelated market and credit risk factors on
 the key inputs of CDO pricing (default probability, default correlation
 and default loss rate) under the framework of factor copula CDO pricing
 model and constructs a risk-integrated model for CDO pricing. In addition,
 we extend the static integrated model to a dynamic version by allowing the
 risk factors driven by the copula-GARCH process. The simulation results
 show that, compared with an integrated model, the premium of senior
 tranches is significantly lower under the standard model. Such difference
 is mainly due to different assumptions of the distributions of
 risk-driving factor.
Journal: Applied Economics 
Pages: 1574-1587 
Issue: 15 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.1000525 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000525 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1574-1587




Template-Type: ReDIF-Article 1.0
Author-Name: Takeshi Yagihashi 
Author-X-Name-First: Takeshi 
Author-X-Name-Last: Yagihashi 
Author-Name: Juan Du 
Author-X-Name-First: Juan 
Author-X-Name-Last: Du 
Title: Intertemporal elasticity of substitution and risk aversion: are they related empirically? 
Abstract:
 This article examines the relationship between two types of preference:
 preference of intertemporal choices and preference towards risk. In the
 simplest form of the constant relative risk aversion utility function, the
 intertemporal elasticity of substitution (IES) and risk aversion have an
 inverse relationship. However, there is no empirical evidence that
 suggests this inverse relationship holds. We examine the relationship
 between risk aversion and IES using household consumption data from the
 Consumer Expenditure Survey during 1996-2010. Multiple risk domains are
 selected to represent risk preference, and for each domain, we consider
 some households to be more risk averse than others. We separately estimate
 IES for the more risk-averse and less risk-averse households. We find that
 the IES estimates are generally smaller for the more risk-averse
 households than for the less risk-averse households and that the
 difference is statistically significant in the majority of the financial
 domains. This finding supports the inverse relationship between the two
 parameters, although considerable heterogeneity is found across domains.
Journal: Applied Economics 
Pages: 1588-1605 
Issue: 15 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2014.1000530 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000530 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1588-1605




Template-Type: ReDIF-Article 1.0
Author-Name: Rabia Arif 
Author-X-Name-First: Rabia 
Author-X-Name-Last: Arif 
Author-Name: Azam Chaudhry 
Author-X-Name-First: Azam 
Author-X-Name-Last: Chaudhry 
Title: The effects of external migration on enrolments, accumulated schooling and dropouts in Punjab 
Abstract:
 External migration in developing countries can relax household income
 constraints because of external remittances. This paper looks at whether
 the external migration of individuals in a household has a positive effect
 on schooling outcomes of children as measured by school enrolments,
 accumulated level of schooling, number of days spent in school and
 dropouts in Punjab. Historic migration rates were used to instrument for
 migration in an analysis of school outcomes for children of different ages
 to see which group has been most affected by external migration. The
 results show a significantly positive impact of external migration on the
 enrolments of younger children, whereas, the accumulated level of
 schooling for older children increases significantly if there is an
 external migrant in the household.
Journal: Applied Economics 
Pages: 1607-1632 
Issue: 16 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000518 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000518 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1607-1632




Template-Type: ReDIF-Article 1.0
Author-Name: Sajid Anwar 
Author-X-Name-First: Sajid 
Author-X-Name-Last: Anwar 
Author-Name: Sizhong Sun 
Author-X-Name-First: Sizhong 
Author-X-Name-Last: Sun 
Title: Foreign direct investment in R&D and domestic entrepreneurship in China's manufacturing industries 
Abstract:
 This paper argues that internationalization of innovation and the related
 spillovers can also affect the likelihood of firm entry and exit into an
 industry. By making use of firm-level panel data from China over the
 period 2005 to 2007, this paper examines the impact of foreign direct
 investment (FDI) in research and development (R&D) and the related
 linkages on entry and exit likelihoods of domestic firms in (i) transport
 equipment and (ii) electrical machinery and equipment manufacturing
 industries. In order to evaluate the region-of-origin effect, this paper
 also separately examines the impact of FDI in R&D originating from (i) all
 countries except Hong Kong, Macau and Taiwan and (ii) Hong Kong, Macau and
 Taiwan. Furthermore, the impact of FDI in R&D on entry and exit of Chinese
 firms in the two industries is examined by splitting the data into large
 and small firms within the two industries. The results of the pooled
 probit regression reveal that FDI in R&D and the related spillovers can
 have a significant impact on the likelihood of entry and exit of domestic
 firms in transport equipment and electric machinery and equipment
 industries. The empirical analysis also suggests that the impact of
 changes in FDI in R&D and the related spillovers varies across firm size.
Journal: Applied Economics 
Pages: 1633-1651 
Issue: 16 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000527 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000527 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1633-1651




Template-Type: ReDIF-Article 1.0
Author-Name: Duol Kim 
Author-X-Name-First: Duol 
Author-X-Name-Last: Kim 
Author-Name: Iljoong Kim 
Author-X-Name-First: Iljoong 
Author-X-Name-Last: Kim 
Title: Trade-offs in the allocation of prosecution resources: an opportunity cost of overcriminalization 
Abstract:
 One in every five citizens has a criminal record in Korea. Scarce
 prosecution resources have been severely skewed toward prosecuting more
 'legislated crime' than 'conventional crime'. We estimate the opportunity
 cost of this prosecutory pattern in terms of <italic>spillovers</italic>
 to conventional crimes. The cost was found to be substantial. For example,
 in 2003, the total spillovers accounted for approximately 25% of the
 increase in conventional crimes for 3 years from 2000 because of the
 disproportionate prosecutory focus on legislated crimes compared with that
 of the 1990s. This article has relevance to those countries with an
 overcriminalizing trend for legislated crimes.
Journal: Applied Economics 
Pages: 1652-1669 
Issue: 16 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000531 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000531 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1652-1669




Template-Type: ReDIF-Article 1.0
Author-Name: Zhuo Qiao 
Author-X-Name-First: Zhuo 
Author-X-Name-Last: Qiao 
Author-Name: Wing-Keung Wong 
Author-X-Name-First: Wing-Keung 
Author-X-Name-Last: Wong 
Title: Which is a better investment choice in the Hong Kong residential property market: a big or small property? 
Abstract:
 The relationship between property size and property investment yield is an
 interesting issue in the real estate market. Previous studies usually use
 the mean-variance criterion to compare the return-risk profiles of the
 yields of different property sizes in the United States. However, this
 criterion has a few shortcomings. This article provides the first attempt
 to use a stochastic dominance approach to analyse this issue. We adopt two
 powerful stochastic dominance tests to compare the yields of five property
 size classes in the Hong Kong residential property market. In our study,
 we analyse two possible investment outcomes: (1) investors could not rent
 out their properties, and thus they would gain/lose from the
 appreciation/depreciation of residential property prices; (2) investors
 could also gain from rental incomes. Our empirical results provide strong
 evidence to show that the yields of smaller property classes
 stochastically dominate the yields of bigger property classes, suggesting
 that buying smaller properties is a better investment choice in the Hong
 Kong residential property market.
Journal: Applied Economics 
Pages: 1670-1685 
Issue: 16 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000534 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000534 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1670-1685




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi 
Author-X-Name-First: Fredj 
Author-X-Name-Last: Jawadi 
Author-Name: Nabila Jawadi 
Author-X-Name-First: Nabila 
Author-X-Name-Last: Jawadi 
Author-Name: Abdoulkarim Idi Cheffou 
Author-X-Name-First: Abdoulkarim Idi 
Author-X-Name-Last: Cheffou 
Title: Are Islamic stock markets efficient? A time-series analysis 
Abstract:
 This article investigates the weak-form informational efficient hypothesis
 for three major Islamic stock markets (world, emerging and developed).
 Unlike previous studies, we applied different parametric and nonparametric
 tests to investigate efficiency in the short and long horizons. Using
 recent data over the period May 2002-June 2012, we developed a time-series
 analysis of Islamic stock price dynamics in the context of the recent
 global financial crisis (2008-2009). Our analysis offers two interesting
 results. First, emerging Islamic stock markets seem to be less efficient
 than developed Islamic markets, suggesting interesting investment
 opportunities and diversification benefits from this region in both the
 short run and the long run. Second, nonrejection of the cointegration
 hypothesis for developed Islamic markets and the global conventional stock
 market point to efficiency for the former in the long term, even if it is
 inefficient in the short term. This finding has at least two economic and
 political implications: (i) investors who seek moderate risk would do well
 to opt for Islamic funds in developed countries, particularly as they
 share the same tendency and provide similar expected returns in the long
 term as conventional funds, (ii) Islamic financial systems can offer a
 useful model that can help to reform and remodel conventional financial
 institutions.
Journal: Applied Economics 
Pages: 1686-1697 
Issue: 16 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000535 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000535 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1686-1697




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Mourao 
Author-X-Name-First: Paulo 
Author-X-Name-Last: Mourao 
Author-Name: Jos預edro Cabral 
Author-X-Name-First: Jos預edro 
Author-X-Name-Last: Cabral 
Title: Periodograms on fiscal illusion: discussing the cycle lengths of public finances in European countries 
Abstract:
 In this article, we study the duration of public finance cycles in 12
 European countries since 1960. We applied periodogram techniques on the
 levels of fiscal illusion found for these established democracies and
 tested the statistical significance of the Fourier frequency peaks. Our
 empirical efforts revealed that most of the cycles in these countries
 could be characterized as long-term cycles (approximately 30&nbsp;years),
 embodying subcycles of approximately 15&nbsp;years. These findings show
 that in addition to the commonly studied electoral cycles or real business
 cycles, our democracies demonstrate extended public finance cycles that
 extend over various legislative tenures ruled by different political
 parties.
Journal: Applied Economics 
Pages: 1698-1709 
Issue: 16 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002901 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002901 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1698-1709




Template-Type: ReDIF-Article 1.0
Author-Name: Hooi Hooi Lean 
Author-X-Name-First: Hooi Hooi 
Author-X-Name-Last: Lean 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Testing for weak-form efficiency of crude palm oil spot and future markets: new evidence from a GARCH unit root test with multiple structural breaks 
Abstract:
 There is a sizeable literature that tests for weak-form efficiency in
 commodity and energy spot and future prices. While many studies now allow
 for multiple structural breaks to address the criticism that conventional
 unit root tests have low power to reject the unit root null in the
 presence of structural change, the extant literature overlooks the fact
 that conventional unit root tests are biased in the presence of
 conditional heteroscedasticity. We apply a recently developed generalized
 autoregressive conditional heteroscedasticity (GARCH) unit root test with
 multiple structural breaks to crude palm oil spot and future prices and
 find much more evidence against weak-form efficiency than that found using
 tests that fail to allow for conditional heteroscedasticity. Our results
 point to the importance of allowing for heteroscedasticity when testing
 for efficiency in commodity and energy spot and future prices.
Journal: Applied Economics 
Pages: 1710-1721 
Issue: 16 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002905 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002905 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1710-1721




Template-Type: ReDIF-Article 1.0
Author-Name: Surendranath R. Jory 
Author-X-Name-First: Surendranath R. 
Author-X-Name-Last: Jory 
Author-Name: Thanh N. Ngo 
Author-X-Name-First: Thanh N. 
Author-X-Name-Last: Ngo 
Author-Name: Daphne Wang 
Author-X-Name-First: Daphne 
Author-X-Name-Last: Wang 
Author-Name: Amrita Saha 
Author-X-Name-First: Amrita 
Author-X-Name-Last: Saha 
Title: The market response to corporate scandals involving CEOs 
Abstract:
 This article examines corporate scandals of both a financial and
 nonfinancial nature between 1993 and 2011 which is expressly linked to a
 firm's CEO. Findings suggest that in the short run, investors react
 adversely to such events and that recalcitrant CEOs end up costing their
 shareholders dearly. Such scandals are more likely to occur among large
 firms, firms with insiders on the board and where the value of options
 granted to a firm's managers is substantial. However, firms with more cash
 flows are less likely to be mired in such scandals, and their stock
 returns are less likely to be affected. There is an increase in stock
 price volatility of affected firms in the days following the announcement
 of the scandal. A point of respite for investors is the damage being
 confined to the short run. The stock price performance of the firms
 affected by the scandals matches the performance of control firms in the
 long run post-announcement. However, the operating performance of the
 sample firms is better than their matched counterparts in the years after
 the scandal. We contribute to the extant literature by considering
 corporate scandal events that are the doings of a firm's CEO and not
 necessarily financially motivated.
Journal: Applied Economics 
Pages: 1723-1738 
Issue: 17 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.995361 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1723-1738




Template-Type: ReDIF-Article 1.0
Author-Name: Massomeh Hajilee 
Author-X-Name-First: Massomeh 
Author-X-Name-Last: Hajilee 
Author-Name: Omar M. Al Nasser 
Author-X-Name-First: Omar M. 
Author-X-Name-Last: Al Nasser 
Author-Name: Gladys H. Perez 
Author-X-Name-First: Gladys H. 
Author-X-Name-Last: Perez 
Title: Banking sector development and interest rate volatility in emerging economies 
Abstract:
 Over the last decades, macroeconomic stability is said to be one of the
 major concerns of emerging economies. Financial sector as a core of
 macroeconomic stability has been under close consideration of policy
 makers. The relationship between interest rate uncertainty and banking
 sector development as one of the most important indicators of financial
 sector development, especially for emerging economies, has not received
 enough attention in the literature. Perhaps this article is the most
 comprehensive study that investigates the relationship between interest
 rate uncertainty and banking sector development for a large group of
 emerging economies. To do this, the short-run and long-run models using a
 bounds testing approach to cointegration for 12 emerging economies over
 the period 1980-2011 have been developed. Estimated results from all
 models indicate that interest rate uncertainty has significant effect on
 banking sector development in both short-run and long-run phenomena in the
 majority of countries. The findings indicate that the link between
 interest rate uncertainty and banking sector development in each country
 depends on each country's specific structure.
Journal: Applied Economics 
Pages: 1739-1747 
Issue: 17 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000520 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000520 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1739-1747




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Ismail Saglam 
Author-X-Name-First: Ismail 
Author-X-Name-Last: Saglam 
Author-Name: Inayat Hussain 
Author-X-Name-First: Inayat 
Author-X-Name-Last: Hussain 
Title: Spectrum auction designs and revenue variations 
Abstract:
 This study examines a sample of 93 national 3G spectrum auctions for the
 period 2000-2011 to identify the sources of substantial revenue
 variations. An implied reduced-form econometric model that recognises the
 censored nature of the sample relates per capita winning bid (per Mhz, per
 million populations) values to regulator-determined auction design
 characteristics, auction competitiveness, mobile wireless market
 conditions and spectrum package attributes identified from tender
 documents. The analysis reveals that among other factors, all auction
 design characteristics independently impact on realized 3G spectrum
 auction revenues.
Journal: Applied Economics 
Pages: 1748-1763 
Issue: 17 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000532 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000532 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1748-1763




Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek 
Author-X-Name-First: Szabolcs 
Author-X-Name-Last: Blazsek 
Author-Name: Marco Villatoro 
Author-X-Name-First: Marco 
Author-X-Name-Last: Villatoro 
Title: Is Beta-<italic>t</italic>-EGARCH(1,1) superior to GARCH(1,1)? 
Abstract:
 Statistical performance, in-sample point forecast precision and
 out-of-sample density forecast precision of GARCH(1,1) and
 Beta-<italic>t</italic>-EGARCH(1,1) models are compared. We study the
 volatility of nine global industry indices for period from April 2006 to
 July 2010. Competing models are estimated for periods before, during and
 after the United States (US) financial crisis of 2008. The results provide
 evidence of the superior out-of-sample predictive performance of
 Beta-<italic>t</italic>-EGARCH compared to GARCH after the US financial
 crisis.
Journal: Applied Economics 
Pages: 1764-1774 
Issue: 17 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000536 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000536 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1764-1774




Template-Type: ReDIF-Article 1.0
Author-Name: K. Nagac 
Author-X-Name-First: K. 
Author-X-Name-Last: Nagac 
Title: Tax system and informal economy: a cross-country analysis 
Abstract:
 This article analyses determinants of informal economy. By using
 qualitative aspects of tax systems, first, we create a 'Smithian' tax
 system index based on Adam Smith's four maxims. Then, using this index and
 other control variables, we study determinants of informal economy. We use
 unique panel data set that is constructed by using various sources. After
 taking into account the endogeneity of tax burden and GDP per capita, our
 results show that 'Smithian' tax system index does not significantly
 affect informal economy. Our results suggest that rule of law, complexity
 of a tax system and tax burden affect informal economy negatively, while
 labour market regulations affect positively.
Journal: Applied Economics 
Pages: 1775-1787 
Issue: 17 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002893 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002893 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1775-1787




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ping Chang 
Author-X-Name-First: Chun-Ping 
Author-X-Name-Last: Chang 
Author-Name: Aziz N. Berdiev 
Author-X-Name-First: Aziz N. 
Author-X-Name-Last: Berdiev 
Title: Do natural disasters increase the likelihood that a government is replaced? 
Abstract:
 We examine the impact of natural disasters on the likelihood that a
 government is removed from office using panel data for 156 countries over
 the period 1975-2010. Employing a conditional logit model, we find that
 the occurrence of natural disasters, the number of natural disasters and
 disaster-related losses increase the chances that a government will be
 replaced. The magnitudes of these effects differ widely across natural
 disaster types, but are robust to the inclusion of economic and political
 variables and to model specifications. Overall, these findings are
 consistent across our sample of OECD and non-OECD countries.
Journal: Applied Economics 
Pages: 1788-1808 
Issue: 17 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002894 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002894 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1788-1808




Template-Type: ReDIF-Article 1.0
Author-Name: M. Fatih Ekinci 
Author-X-Name-First: M. Fatih 
Author-X-Name-Last: Ekinci 
Author-Name: F. Pinar Erdem 
Author-X-Name-First: F. Pinar 
Author-X-Name-Last: Erdem 
Author-Name: Zubeyir Kilinc 
Author-X-Name-First: Zubeyir 
Author-X-Name-Last: Kilinc 
Title: Credit growth, current account and financial depth 
Abstract:
 Exploring the determinants and dynamics of the current account balance is
 one of the priorities of academic literature and policy circles. Although
 the effects of structural variables are deeply analysed, a lesser
 attention has been paid to the impact of financial variables. Drawing on
 standard empirical current account models and with a large sample of
 industrial and developing countries, we report a significant deterioration
 in the current account balance in case of an increase in the credit
 growth. Moreover, we find that this link is substantially stronger for the
 developing ones motivating a closer examination. Therefore, we further
 advance our analysis and show that credit growth causes a stronger impact
 on the current account balance for lower levels of financial depth. In
 other words, at the early stages of financial development, acceleration in
 the credit growth might cause a larger deterioration in the current
 account balance; thus, it might be suggested that monetary policy and
 macro-prudential measures aimed at preventing financial excess might be
 more effective to reduce the external imbalances at the early stages of
 financial deepening.
Journal: Applied Economics 
Pages: 1809-1821 
Issue: 17 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002897 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002897 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1809-1821




Template-Type: ReDIF-Article 1.0
Author-Name: Nestor M. Arguea 
Author-X-Name-First: Nestor M. 
Author-X-Name-Last: Arguea 
Author-Name: Richard R. Hawkins 
Author-X-Name-First: Richard R. 
Author-X-Name-Last: Hawkins 
Title: The rate elasticity of Florida tourist development (aka bed) taxes 
Abstract:
 One aspect of taxation in Florida is unique in that state policymakers
 have created several different tourist development taxes, generally
 allowing local governments to adopt up to four of these <italic>ad
 valorem</italic> levies (which can total 5%) on transient rentals. The
 rentals include, but are not limited to, hotel stays. In this article, we
 estimate the elasticity of this local tax base with respect to the rate
 for Florida counties with rate changes between 1998 and 2012. Results
 indicate several significant and large short-term declines from periodic
 county-level increases in the tax rate, but no significant long-term
 effects.
Journal: Applied Economics 
Pages: 1823-1832 
Issue: 18 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000519 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000519 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1823-1832




Template-Type: ReDIF-Article 1.0
Author-Name: Shengrong Lu 
Author-X-Name-First: Shengrong 
Author-X-Name-Last: Lu 
Author-Name: Yanwu Wang 
Author-X-Name-First: Yanwu 
Author-X-Name-Last: Wang 
Title: Convergence, technological interdependence and spatial externalities: a spatial dynamic panel data analysis 
Abstract:
 This study adopts a spatial dynamic panel data approach and spatial
 quasi-maximum likelihood to re-estimate the speed of growth convergence in
 91 countries based on technological interdependence and spatial
 externalities. We perform a conditional Lagrange multiplier test for
 spatial error dependence and find some differences to previous studies.
 First, the switch from a cross-sectional to a dynamic panel data framework
 enables the estimated rate of conditional convergence to be higher, more
 accurate and more appropriate for realistic and theoretical expectations.
 Second, the spatial Durbin model (SDM) is a general form of simplified
 model that considers spatial error correlation, and its likelihood ratio
 test for the theoretical model of 'learning by doing' effect provides
 further evidence. Finally, statistical tests find that spatial correlation
 not only occurs in each variable, but also appears in the error term.
 Thus, the SDM does not exist in the assumptions associated with the
 spatial error, which are not necessarily correct.
Journal: Applied Economics 
Pages: 1833-1846 
Issue: 18 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000523 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000523 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1833-1846




Template-Type: ReDIF-Article 1.0
Author-Name: Charlene M. Kalenkoski 
Author-X-Name-First: Charlene M. 
Author-X-Name-Last: Kalenkoski 
Author-Name: Gigi Foster 
Author-X-Name-First: Gigi 
Author-X-Name-Last: Foster 
Title: Measuring the relative productivity of multitasking to sole-tasking in household production: experimental evidence 
Abstract:
 The standard household production model does not incorporate multitasking,
 although time-diary data reveal that individuals regularly multitask. We
 incorporate multitasking into a household production model in which time
 spent in childcare can be sole-tasked or multitasked with another
 household production activity and we present the results of an experiment
 designed to measure the productivity parameters of this model. Because
 utility and productivity are intertwined and difficult to disentangle in
 any household production model, we vary the utility pay-offs our
 experimental participants receive in order to determine how our estimated
 productivity parameters are affected by a change in the utility
 parameters. Our estimates of the relative multitasking productivities
 indicate that, while a minute of sole-tasked time produces more of a
 single commodity than a minute of multitasked time, total household output
 increases when two outputs are produced simultaneously, hence confirming
 the economic motivation for multitasking.
Journal: Applied Economics 
Pages: 1847-1862 
Issue: 18 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000526 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000526 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1847-1862




Template-Type: ReDIF-Article 1.0
Author-Name: Laura E. Armey 
Author-X-Name-First: Laura E. 
Author-X-Name-Last: Armey 
Author-Name: Robert M. McNab 
Author-X-Name-First: Robert M. 
Author-X-Name-Last: McNab 
Title: Democratization and civil war 
Abstract:
 This article examines the impact of civil war on democratization,
 particularly focusing on whether civil war provides an opportunity for
 institutional reform. We investigate the impact of war termination in
 general, along with prolonged violence, rebel victory and international
 intervention on democratization. Using an unbalanced panel data set of 96
 countries covering a 34-year period, our analysis suggests that civil war
 lowers democratization in the succeeding period. Our findings also suggest
 that United Nations intervention increases democratization, as do wars
 ending in stalemates. However, wars ending in rebel victories seem to
 reduce democratization. These findings appear robust to conditioning,
 different instrument sets, modelling techniques and the measurement of
 democracy.
Journal: Applied Economics 
Pages: 1863-1882 
Issue: 18 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000529 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000529 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1863-1882




Template-Type: ReDIF-Article 1.0
Author-Name: Steven J. Jordan 
Author-X-Name-First: Steven J. 
Author-X-Name-Last: Jordan 
Author-Name: Andrew Vivian 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Vivian 
Author-Name: Mark E. Wohar 
Author-X-Name-First: Mark E. 
Author-X-Name-Last: Wohar 
Title: Location, location, location: currency effects and return predictability? 
Abstract:
 Most international financial market studies that compare across countries
 utilize the US dollar as the common numeraire. We explore the little
 studied question of the appropriate choice for the base currency and ask
 if currency choice can affect the final conclusion of whether
 predictability exists. We provide empirical results for stock return
 predictability that demonstrate the importance of the numeraire. For
 example, the existence (absence) of predictability for a US investor does
 not necessarily imply the existence (absence) of predictability for other
 foreign investors.
Journal: Applied Economics 
Pages: 1883-1898 
Issue: 18 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000537 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000537 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1883-1898




Template-Type: ReDIF-Article 1.0
Author-Name: Shekar Bose 
Author-X-Name-First: Shekar 
Author-X-Name-Last: Bose 
Author-Name: Hafizur Rahman 
Author-X-Name-First: Hafizur 
Author-X-Name-Last: Rahman 
Title: Examining the relationship between stock return volatility and trading volume: new evidence from an emerging economy 
Abstract:
 Using daily stock return data for individual stocks from an emerging
 economy, this article examines the relationship between return volatility
 and trading volume under the theoretical postulate of the mixture of
 distributions hypothesis. The results suggest that the contemporaneous
 trading volume as a proxy for latent information arrival to the market did
 not contribute to the removal of significant ARCH or Generalized
 Autoregressive Conditional Heteroscedasticity effects that are found in
 stocks at the first stage of the investigation. The same holds for the
 lagged volume except for one case. This, perhaps, suggests that the
 trading volume (contemporaneous or lagged) is not adequately conveying
 information to induce traders' views of the desirability of trade and,
 therefore, points to the need for searching for other micro and macro
 variables to be used as potential proxy for information arrival to the
 stock market of the emerging economy.
Journal: Applied Economics 
Pages: 1899-1908 
Issue: 18 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002885 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002885 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1899-1908




Template-Type: ReDIF-Article 1.0
Author-Name: Shakil Quayes 
Author-X-Name-First: Shakil 
Author-X-Name-Last: Quayes 
Title: Outreach and performance of microfinance institutions: a panel analysis 
Abstract:
 Using a panel of 764 microfinance institutions (MFIs) from 87 countries,
 this study analyses the possible trade-off between outreach and
 performance and shows that greater depth of outreach has a positive impact
 on the financial performance of an MFI. The empirical results of this
 study should dispel the widely held apprehension that the recent emphasis
 on attainment of financial sustainability by the MFIs could seriously
 impair their outreach efforts and shows that outreach to the poor can
 actually bolster financial performance.
Journal: Applied Economics 
Pages: 1909-1925 
Issue: 18 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002891 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002891 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1909-1925




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios Giokas 
Author-X-Name-First: Dimitrios 
Author-X-Name-Last: Giokas 
Author-Name: Nicolaos Eriotis 
Author-X-Name-First: Nicolaos 
Author-X-Name-Last: Eriotis 
Author-Name: Ioannis Dokas 
Author-X-Name-First: Ioannis 
Author-X-Name-Last: Dokas 
Title: Efficiency and productivity of the food and beverage listed firms in the pre-recession and recessionary periods in Greece 
Abstract:
 This study uses data envelopment analysis to examine the liquidity and
 sales efficiency of the Food and Beverage listed firms in Athens Exchange
 in the period 2006-2012. The liquidity efficiency of the firms is higher
 than the sales efficiency but the results indicate that there are not
 statistical significant differences in the rankings estimated by the two
 models in each period. The Malmquist Productivity Index reveals that over
 the period of the study, firms have experienced an annual average increase
 in productivity of 0.5% (a slight progress). On examining the components
 of this productivity change, it becomes evident that firms have
 experienced an annual average of 2% increase in technology combined with a
 decrease in technical efficiency of -1.5%. The results indicate that 52.4%
 of the firms experienced productivity gains in the examined period, and
 this was mainly the result of technological gain rather than efficiency
 improvement. More than 90% of the firms in the sample shift the efficiency
 frontier and only 33.3% of the firms are catching up, improving their
 productivity by reducing inefficiency. Moreover, the empirical study
 reveals that the overall technical inefficiencies of the firms are
 primarily caused by pure technical inefficiencies rather than scale
 inefficiencies.
Journal: Applied Economics 
Pages: 1927-1941 
Issue: 19 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002886 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002886 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1927-1941




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Yuan 
Author-X-Name-First: Wei 
Author-X-Name-Last: Yuan 
Author-Name: Ahmet Göncü 
Author-X-Name-First: Ahmet 
Author-X-Name-Last: Göncü 
Author-Name: Giray &Ouml;kten 
Author-X-Name-First: Giray 
Author-X-Name-Last: &Ouml;kten 
Title: Estimating sensitivities of temperature-based weather derivatives 
Abstract:
 Pricing of temperature-based weather derivatives has been studied in the
 literature; however, there is no analysis of the estimation of the
 sensitivities of weather derivatives in a stochastic model of
 temperatures. We use pathwise derivative and kernel methods to derive
 Monte Carlo estimators for the sensitivity (Greeks) of temperature-based
 weather derivatives. These sensitivities can be used by investors for
 choosing the most suitable weather contracts for partial hedging or
 speculation. Temperature data from New York, Atlanta and Chicago are used
 in the discussion of numerical results.
Journal: Applied Economics 
Pages: 1942-1955 
Issue: 19 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002888 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002888 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1942-1955




Template-Type: ReDIF-Article 1.0
Author-Name: Cristhian Mellado 
Author-X-Name-First: Cristhian 
Author-X-Name-Last: Mellado 
Author-Name: Diego Escobari 
Author-X-Name-First: Diego 
Author-X-Name-Last: Escobari 
Title: Virtual integration of financial markets: a dynamic correlation analysis of the creation of the Latin American Integrated Market 
Abstract:
 This article investigates the role of virtual integration of financial
 markets on stock market return co-movements. In May of 2011, the Chilean,
 Colombian and Peruvian stock markets virtually integrated their stock
 exchanges and central securities depositories to form the Latin American
 Integrated Market (MILA). We utilize the dynamic conditional correlation
 model proposed by Engle (2002) to identify a statistically significant
 positive correlation between these markets. Moreover, we find strong
 evidence that the creation of the MILA increased the levels of dynamic
 correlation between stock returns. A higher correlation was also found
 during the dot-com bubble and the 2007 financial crises. Our results imply
 a decline in gains from international diversification by holding
 portfolios consisting of diverse stocks of these countries.
Journal: Applied Economics 
Pages: 1956-1971 
Issue: 19 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002892 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002892 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1956-1971




Template-Type: ReDIF-Article 1.0
Author-Name: B. Rivera 
Author-X-Name-First: B. 
Author-X-Name-Last: Rivera 
Author-Name: B. Casal 
Author-X-Name-First: B. 
Author-X-Name-Last: Casal 
Author-Name: L. Currais 
Author-X-Name-First: L. 
Author-X-Name-Last: Currais 
Title: Length of stay and mental health of the immigrant population in Spain: evidence of the healthy immigrant effect 
Abstract:
 This article analyses the relationship between how long immigrant
 populations reside in the country of destination and the state of their
 mental health. The empirical approach to this relationship relies on data
 from the <italic>Spanish National Health Survey</italic> 2011-2012. The
 results confirm a Healthy Immigrant Effect that tends to decline in
 accordance with how long the immigrant stays. Immigrants who have been
 residing for less than 10&nbsp;years in Spain have better mental health
 than the national population as a whole. It is important to study health
 disparities among the foreign population and how these evolve to ensure
 that it has access to health services and that its health care needs are
 met.
Journal: Applied Economics 
Pages: 1972-1982 
Issue: 19 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002895 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1972-1982




Template-Type: ReDIF-Article 1.0
Author-Name: Younes Ben Zaied 
Author-X-Name-First: Younes 
Author-X-Name-Last: Ben Zaied 
Author-Name: Marie Estelle Binet 
Author-X-Name-First: Marie Estelle 
Author-X-Name-Last: Binet 
Title: Modelling seasonality in residential water demand: the case of Tunisia 
Abstract:
 This article proposes to model seasonal patterns of residential water
 demand using the techniques of seasonal integration and cointegration. The
 methodology is applied to quarterly aggregate time series data for Tunisia
 (1980-2007), applying the same increasing, multi-step pricing scheme in
 the whole country. First, a seasonal cointegration analysis demonstrates
 the relevance of a pricing policy that increases the size of the lower
 consumption block in summer. Second, the nonseasonal cointegration
 analysis reveals a relatively high price elasticity for the highest
 consumption block. Therefore, we also propose to increase the tariff
 progressivity to promote water savings. This modified pricing scheme will
 help to achieve goals of environmental protection and social equity.
Journal: Applied Economics 
Pages: 1983-1996 
Issue: 19 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002896 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002896 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1983-1996




Template-Type: ReDIF-Article 1.0
Author-Name: Dan Saar 
Author-X-Name-First: Dan 
Author-X-Name-Last: Saar 
Author-Name: Yossi Yagil 
Author-X-Name-First: Yossi 
Author-X-Name-Last: Yagil 
Title: Corporate yield curves as predictors of future economic and financial indicators 
Abstract:
 The government yield curve is known for its ability to predict the future
 growth rate of the economy. Later studies showed that credit spreads can
 assist in predicting macroeconomic behaviour as well. We extend this
 notion by utilizing corporate yield curves and demonstrating that
 corporate yield curve spreads can predict future economic growth, the
 future state of the economy and stock market behaviour. In addition, our
 sample covers the most recent data available, and it also includes the
 crash year of 2008 and the recovery period following it. Our results
 reveal a trade-off effect between the government yield curve, which is a
 better predictor for long-term forecasting, and the corporate yield
 curves, which are better predictors for short-term predictions. In
 addition, we show that both the government and corporate yield curves are
 more effective in predicting negative rather than positive economic
 changes.
Journal: Applied Economics 
Pages: 1997-2011 
Issue: 19 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002898 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002898 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1997-2011




Template-Type: ReDIF-Article 1.0
Author-Name: Meixin Guo 
Author-X-Name-First: Meixin 
Author-X-Name-Last: Guo 
Author-Name: Huiran Pan 
Author-X-Name-First: Huiran 
Author-X-Name-Last: Pan 
Title: Can cross-listing relax financial frictions in trade and equity holdings? A sector-level analysis 
Abstract:
 Previous studies have documented the positive mutual relationship between
 bilateral aggregate goods trade and asset holdings. This article examines
 whether financial frictions play an important role in this mutual
 relationship. Instrumental variable Poisson pseudo maximum likelihood
 (IV-PPML) estimation method is applied to a new panel of data on US
 imports and foreign equity holdings in 20 manufacturing sectors from 43
 countries over the period 2001-2007. The results confirm the significantly
 positive relationship between goods trade and equity holdings, and show
 that financial frictions are an important factor causing this positive
 correlation. In addition, we find that equity cross-listings in the US
 stock markets provide external funds to relax financial frictions and
 promote goods trade. This impact varies with different measures of
 financial frictions in developing and developed countries.
Journal: Applied Economics 
Pages: 2012-2029 
Issue: 19 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002900 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002900 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:2012-2029




Template-Type: ReDIF-Article 1.0
Author-Name: Afschin Gandjour 
Author-X-Name-First: Afschin 
Author-X-Name-Last: Gandjour 
Title: A model to optimize investments in health technologies, quality of care and research 
Abstract:
 Funds for health technologies compete with funds for implementing health
 technologies as well as funds for conducting research to reduce
 uncertainty around treatment and implementation cost-effectiveness. No
 study has yet shown how to allocate a combined budget for health
 technologies, implementation and research. The purpose of this work was to
 present an allocation model with the goal to maximize health. Based on a
 constrained optimization formulation, we show that considering
 opportunities to invest in implementation and research may justify
 considerable disinvestment in health technologies. This may reduce the
 willingness to pay for new health technologies significantly.
Journal: Applied Economics 
Pages: 2031-2039 
Issue: 20 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.995366 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995366 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2031-2039




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Chu Chuang 
Author-X-Name-First: Chung-Chu 
Author-X-Name-Last: Chuang 
Author-Name: Yi-Hsien Wang 
Author-X-Name-First: Yi-Hsien 
Author-X-Name-Last: Wang 
Author-Name: Tsai-Jung Yeh 
Author-X-Name-First: Tsai-Jung 
Author-X-Name-Last: Yeh 
Author-Name: Shuo-Li Chuang 
Author-X-Name-First: Shuo-Li 
Author-X-Name-Last: Chuang 
Title: Hedging effectiveness of the hedged portfolio: the expected utility maximization subject to the value-at-risk approach 
Abstract:
 Multivariate volatilities and distribution play an important role in
 portfolio selection and can be used to calculate the value-at-risk (VaR)
 of a multiple-asset financial position. This study proposes a new expected
 utility maximization (EUM) model that accounts for VaR (EUM model with a
 VaR constraint (EUM-VaR)). Additionally, using the EUM-VaR model, this
 study investigates the hedging effectiveness of short and long hedged
 portfolios constructed with multivariate generalized autoregressive
 conditional heteroscedasticity (GARCH)-type models that feature level
 effects and multivariate normal <inline-formula
 id="ILM0001"><inline-graphic xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_1000528_ilm0001.gif"/></inline-formula> and skewed
 <inline-formula id="ILM0002"><inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_1000528_ilm0002.gif"/></inline-formula> distributions
 for stock indexes and their corresponding futures in the Greater China
 Region. It is found that, all else equal, portfolios constructed using the
 multivariate skewed <inline-formula id="ILM0003"><inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_1000528_ilm0003.gif"/></inline-formula> distribution
 are far more effective in hedging than those that rely on the other
 distributions, and the effectiveness of hedged portfolios from the
 multivariate GARCH-type models with level effects outperform those without
 level effects. Additionally, the effectiveness of hedged portfolios from
 multivariate asymmetric GARCH-type models exceeds that of those from
 multivariate symmetric GARCH-type models. Thus, investors should select
 the multivariate asymmetry in volatility, multivariate asymmetry in
 distribution, and EUM-VaR models to construct effectively hedged
 portfolios. The results of this study can provide useful implications for
 investors looking to manage risk.
Journal: Applied Economics 
Pages: 2040-2052 
Issue: 20 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000528 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000528 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2040-2052




Template-Type: ReDIF-Article 1.0
Author-Name: Larry Li 
Author-X-Name-First: Larry 
Author-X-Name-Last: Li 
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Title: Operational risk, the legal system and governance indicators: a country-level analysis 
Abstract:
 A total of 4388 operational loss events recorded over three decades in 53
 countries are analysed on a country level in terms of the size of the
 economy, the standard of living, the legal system, the regional factor and
 six governance indicators. The results show that the average severity of
 the operational losses incurred by firms located in a particular country
 is positively related to the size of the economy and the standard of
 living. The results also show that loss of severity is negatively related
 to governance indicators, particularly regulatory quality. The frequency
 of operational loss events is also positively related to the size of the
 economy.
Journal: Applied Economics 
Pages: 2053-2072 
Issue: 20 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1000533 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000533 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2053-2072




Template-Type: ReDIF-Article 1.0
Author-Name: Karl Ludwig Keiber 
Author-X-Name-First: Karl Ludwig 
Author-X-Name-Last: Keiber 
Author-Name: Helene Samyschew 
Author-X-Name-First: Helene 
Author-X-Name-Last: Samyschew 
Title: The role of sentiment in global risk premia 
Abstract:
 This article examines the role of sentiment for global risk premia. We
 analyse whether the global risk premia on macroeconomic fundamentals can
 be estimated more thoroughly if sentiment is included as additional
 conditioning information. The analysis is performed in the framework of a
 conditional multiple beta pricing model. The focus of analysis is the
 asset excess returns of the G-7 stock markets in the period from February
 1999 to February 2012. The obtained results indicate that sentiment as
 conditioning information is able to contribute to the explanation of the
 general macroeconomic risk premia.
Journal: Applied Economics 
Pages: 2073-2091 
Issue: 20 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002887 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002887 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2073-2091




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Palardy 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Palardy 
Author-Name: Tomi Ovaska 
Author-X-Name-First: Tomi 
Author-X-Name-Last: Ovaska 
Title: Decomposing household, professional and market forecasts on inflation: a dynamic factor model analysis 
Abstract:
 A dynamic factor model with stochastic volatility is used to investigate
 the relationships between three alternative measures of inflation
 expectations. The results show evidence of both a common time-varying
 trend and a common transitory component between inflation and short-term
 inflation expectations from households, professionals and markets. While
 the common time-varying trend has declined in both level and volatility
 since the early 1980s, it was found that consumer expectations are
 disproportionately influenced by the visibility of prices of select few
 goods. Roughly speaking, a 1% point increase in food and energy prices
 leads to about 1/3% point increase in consumer forecasts of inflation. In
 terms of policymaking, this finding suggests that stability in highly
 visible prices can moderate inflation in a meaningful way.
Journal: Applied Economics 
Pages: 2092-2101 
Issue: 20 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002889 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002889 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2092-2101




Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Rossi 
Author-X-Name-First: Fabrizio 
Author-X-Name-Last: Rossi 
Author-Name: Richard J. Cebula 
Author-X-Name-First: Richard J. 
Author-X-Name-Last: Cebula 
Title: Stock market reactions to announcements of the board of directors: evidence from Italy 
Abstract:
 The board of directors plays an important role in corporate governance. It
 is an internal mechanism that controls and monitors the actions of
 managers and aligns the utility functions between corporate owners and
 managers. The board of directors performs multiple functions that concern,
 for example, the replacement of the managers, financial policy, the
 preparation of strategic plans and other actions that affect the
 performance of the company. The board plays an important role since on the
 one hand it controls the actions of management and on the other it advises
 the management regarding the strategies to be adopted. In this study, 100
 announcements regarding the appointment of the board of directors of 100
 Italian listed companies during the period 2012-2014 are investigated. The
 results show a positive reaction within 20&nbsp;days around the
 announcement date. In four of the six time windows, cumulative abnormal
 returns (CARs) are positive and statistically significant. The positive
 reaction of the market would appear, however, to be linked more to the
 composition of the board of directors than to the size of the board of
 directors.
Journal: Applied Economics 
Pages: 2102-2118 
Issue: 20 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002902 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002902 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2102-2118




Template-Type: ReDIF-Article 1.0
Author-Name: Harald Badinger 
Author-X-Name-First: Harald 
Author-X-Name-Last: Badinger 
Author-Name: Jesus Crespo Cuaresma 
Author-X-Name-First: Jesus 
Author-X-Name-Last: Crespo Cuaresma 
Title: Aggregravity: estimating gravity models from aggregate data 
Abstract:
 This article considers alternative methods to estimate econometric models
 based on bilateral data when only aggregate information on the dependent
 variable is available. Such methods can be used to obtain an indication of
 the sign and magnitude of bilateral model parameters and, more
 importantly, to decompose aggregate into bilateral data, which can then be
 used as proxy variables in further empirical analyses. We perform a Monte
 Carlo study and carry out a simple real world application using intra-EU
 trade and capital flows, showing that the methods considered work
 reasonably well and are worthwhile being considered in the absence of
 bilateral data.
Journal: Applied Economics 
Pages: 2119-2126 
Issue: 20 
Volume: 47 
Year: 2015 
Month: 4 
X-DOI: 10.1080/00036846.2014.1002903 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2119-2126




Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Bajo-Rubio 
Author-X-Name-First: Oscar 
Author-X-Name-Last: Bajo-Rubio 
Author-Name: Carmen D𮠭Mora 
Author-X-Name-First: Carmen 
Author-X-Name-Last: D𮠭Mora 
Title: On the employment effects of outward FDI: the case of Spain, 1995-2011 
Abstract:
 In this article, we analyse the impact on domestic employment resulting
 from outward FDI performed by Spanish firms, using industry data for the
 period 1995-2011. Together with the effects on the total employment, we
 differentiate the effects according to the particular groups of countries
 and activities to which those FDI outflows are addressed. In addition, the
 impact of outward FDI on the demand for labour is also analysed separately
 for high and low skill levels of the labour force.
Journal: Applied Economics 
Pages: 2127-2141 
Issue: 21 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2014.1002904 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002904 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2127-2141




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Christensen 
Author-X-Name-First: Michael 
Author-X-Name-Last: Christensen 
Author-Name: Michael Vangsgaard Christensen 
Author-X-Name-First: Michael Vangsgaard 
Author-X-Name-Last: Christensen 
Author-Name: Ken Gamskjaer 
Author-X-Name-First: Ken 
Author-X-Name-Last: Gamskjaer 
Title: Delegated portfolio management and optimal allocation of portfolio managers 
Abstract:
 In this article, we investigate whether the application of the
 mean-variance framework on portfolio manager allocation offers any
 out-of-sample benefits compared to a naﶥ strategy of equal weighting.
 Based on an exclusive data-set of high-net-worth (HNW) investors, we
 utilize a wide variety of methodologies to estimate the input parameters
 including exponentially weighted moving average (EWMA), generalized
 autoregressive conditional heteroscedasticity (GARCH) and Bayes-Stein
 shrinkage estimation. We apply nine different mean-variance models, but
 find that none of these present any consistent benefit over a naﶥ
 strategy of equal weighting.
Journal: Applied Economics 
Pages: 2142-2153 
Issue: 21 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005811 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005811 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2142-2153




Template-Type: ReDIF-Article 1.0
Author-Name: Niels Hermes 
Author-X-Name-First: Niels 
Author-X-Name-Last: Hermes 
Author-Name: Aljar Meesters 
Author-X-Name-First: Aljar 
Author-X-Name-Last: Meesters 
Title: Financial liberalization, financial regulation and bank efficiency: a multi-country analysis 
Abstract:
 This article investigates the impact of financial reforms on bank
 efficiency. More specifically, we distinguish between two different types
 of financial reforms, i.e. financial liberalization measures and measures
 of the quality of bank regulation and supervision (i.e. financial
 regulation), and study their relationship to bank efficiency separately.
 Moreover, we analyse whether the impact of financial liberalization on
 bank efficiency is conditional on the quality of regulation and
 supervision of the banking system. We apply stochastic frontier analysis
 to calculate bank efficiency at the individual bank level and use a new
 and detailed database that measures different aspects of financial
 reforms. The data-set consists of 87&nbsp;312 bank-year observations
 covering 61 countries for the period 1996-2005. Overall, we show that the
 impact of financial liberalization policies on bank efficiency is
 conditional on the extent to which bank regulation and supervision has
 been adopted and developed.
Journal: Applied Economics 
Pages: 2154-2172 
Issue: 21 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005815 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005815 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2154-2172




Template-Type: ReDIF-Article 1.0
Author-Name: J. H. Chung 
Author-X-Name-First: J. H. 
Author-X-Name-Last: Chung 
Author-Name: T. H. Yoo 
Author-X-Name-First: T. H. 
Author-X-Name-Last: Yoo 
Title: Government policy, network externalities and mobile telecommunication services: evidence from OECD countries 
Abstract:
 This article analyses the effect of government policy on the diffusion of
 mobile telecommunication services in member countries of the Organization
 for Economic Cooperation and Development (OECD). Specifically, we examine
 how the competition in and standard policies of each country affect
 cellular diffusion through interactions with positive and negative network
 externalities. The empirical analysis shows that significant network
 externality effects exist in a cellular market. Although the positive
 effects dominate the negative effects initially, the negative network
 externality effects become larger and outweigh the positive externality
 effects after a certain level of diffusion rate has been achieved. In
 particular, a single standard policy and the speed of technological
 innovation combined with the previous penetration rate generate a positive
 network externality on the diffusion of mobile telecommunications.
 However, a competition policy that solely increases the rate of new
 subscriptions does not generate any interacting effects.
Journal: Applied Economics 
Pages: 2173-2183 
Issue: 21 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005816 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005816 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2173-2183




Template-Type: ReDIF-Article 1.0
Author-Name: J. Hanna 
Author-X-Name-First: J. 
Author-X-Name-Last: Hanna 
Author-Name: L. L鶩 
Author-X-Name-First: L. 
Author-X-Name-Last: L鶩 
Author-Name: S. Petit 
Author-X-Name-First: S. 
Author-X-Name-Last: Petit 
Title: Intra-tourism trade, income distribution and tourism endowment: an econometric investigation 
Abstract:
 Empirical investigation (Nowak <italic>et al.</italic>, 2012) points out
 that vertical intra-industry trade (VIIT) in Europe is the dominant type
 of intra-industry trade (IIT) in the tourism sector. This article is the
 first in tourism literature to test separately the determinants of
 vertically and horizontally differentiated services, using the most recent
 models in the theory of IIT. We examine bilateral trade among all trading
 partners of the sample of European countries, covering the period from
 2000 to 2008. We show that differences in gross domestic product
 <italic>per capita</italic> and the income-distribution overlap, as well
 as cultural proximity, are the most significant driving forces behind VIIT
 for European countries. Geographic distance has a negative effect, whereas
 specific tourism endowments and relative size of the economies are less
 conclusive. These results confirm theory predictions and most of the
 empirical findings related to the pattern of VIIT for the manufacturing
 sector. As expected, we find that determinants of VIIT cannot explain
 horizontal intra-industry trade in tourism. We suggest two alternative
 methods of estimation: generalized least squares logistic function and the
 fractional logit estimator. We conclude that there are common factors
 explaining IIT in the manufacturing and tourism trades.
Journal: Applied Economics 
Pages: 2184-2200 
Issue: 21 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005817 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005817 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2184-2200




Template-Type: ReDIF-Article 1.0
Author-Name: Mateja Mataji&#x10d; 
Author-X-Name-First: Mateja 
Author-X-Name-Last: Mataji&#x10d; 
Author-Name: Timotej Jagri&#x10d; 
Author-X-Name-First: Timotej 
Author-X-Name-Last: Jagri&#x10d; 
Author-Name: Jani Bek&#x151; 
Author-X-Name-First: Jani 
Author-X-Name-Last: Bek&#x151; 
Title: A differentiated tolls system - an effective transport policy tool for Slovenia? 
Abstract:
 We provide an econometric model of passenger and freight transportation
 demand based on panel data for 10 sections of toll roads in Slovenia.
 Transportation demand on Slovenian motorways is price inelastic. The price
 elasticity of transportation demand statistically varies among different
 parts of the toll sections, so it would seem sensible to introduce a
 differentiated toll system that would allow the simultaneous achievement
 of multiple objectives, such as increasing the internalization of the
 external costs of transport, increasing transportation demand management
 on the basis of price and increasing cost recovery for the maintenance and
 development of toll roads in Slovenia. Transportation demand is even more
 responsive to changes in fuel price than changes in tolls, so
 transportation policy can manage transportation demand using differences
 in fuel prices. Based on estimates of demand models differentiated
 according to several geographical groups of road sections, we also find
 that growth in the price elasticity of transportation demand in Slovenia
 can be achieved through the expansion of the transport supply by
 increasing the competitiveness of rail transport and alternative
 transportation routes.
Journal: Applied Economics 
Pages: 2201-2217 
Issue: 21 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005818 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005818 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2201-2217




Template-Type: ReDIF-Article 1.0
Author-Name: Yueming Qiu 
Author-X-Name-First: Yueming 
Author-X-Name-Last: Qiu 
Author-Name: Yi David Wang 
Author-X-Name-First: Yi David 
Author-X-Name-Last: Wang 
Author-Name: Jianfeng Wang 
Author-X-Name-First: Jianfeng 
Author-X-Name-Last: Wang 
Title: Implied discount rate and payback threshold of energy efficiency investment in the industrial sector 
Abstract:
 The industrial sector is responsible for about a third of the energy usage
 in the United States, and there is significant energy saving potential
 from the industrial sector. However, the phenomenon of "energy efficiency
 gap" - the scenario in which cost-effective energy efficient technologies
 enjoy only limited market success - appears frequently in the industrial
 sector. This article tries to explain this efficiency gap in the
 industrial sector by empirically estimating the implied discount rates and
 payback thresholds industrial firms use to evaluate their energy
 efficiency investments. Using the Industrial Assessment Centers (IAC)
 database from 2002 to 2011, with more than 30&nbsp;000 energy efficiency
 recommendations, this article builds structural models of firms'
 evaluation of an energy efficiency project. The model results show that
 the implied discount rates of medium to small industrial firms range from
 40 to 45%, and the average payback threshold is about 9&nbsp;months.
Journal: Applied Economics 
Pages: 2218-2233 
Issue: 21 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005820 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005820 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2218-2233




Template-Type: ReDIF-Article 1.0
Author-Name: Tina Dulam 
Author-X-Name-First: Tina 
Author-X-Name-Last: Dulam 
Author-Name: Philip Hans Franses 
Author-X-Name-First: Philip Hans 
Author-X-Name-Last: Franses 
Title: Emigration, wage differentials and brain drain: the case of Suriname 
Abstract:
 In this article, we examine two hypotheses concerning emigration. The
 first hypothesis is that emigration is positively correlated with wage
 differentials. The second hypothesis concerns a positive correlation
 between emigration and higher education in the sending country (the
 so-called brain gain hypothesis). We analyse unique time-series data for
 Suriname for the period 1972-2009, for which we fit error correction
 models to disentangle short-run from long-run effects. We document
 moderate support for the first hypothesis, but we find strong support for
 the brain drain (and not brain gain) hypothesis. We conclude with
 implications of our findings for Suriname.
Journal: Applied Economics 
Pages: 2339-2347 
Issue: 23 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005826 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005826 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2339-2347




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian (Wai-Kong) Cheung 
Author-X-Name-First: Adrian (Wai-Kong) 
Author-X-Name-Last: Cheung 
Author-Name: Eduardo Roca 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Roca 
Author-Name: Jen-Je Su 
Author-X-Name-First: Jen-Je 
Author-X-Name-Last: Su 
Title: Crypto-currency bubbles: an application of the Phillips-Shi-Yu (2013) methodology on Mt. Gox bitcoin prices 
Abstract:
 The creation of bitcoin heralded the arrival of digital or crypto-currency
 and has been regarded as a phenomenon. Since its introduction, it has
 experienced a meteoric rise in price and rapid growth accompanied by huge
 volatility swings, and also attracted plenty of controversies which even
 involved law enforcement agencies. Hence, claims abound that bitcoin has
 been characterized by bubbles ready to burst any time (e.g. the recent
 collapse of bitcoin's biggest exchange, Mt Gox). This has earned plenty of
 coverage in the media but surprisingly not in the academic literature. We
 therefore fill this knowledge gap. We conduct an econometric investigation
 of the existence of bubbles in the bitcoin market based on a recently
 developed technique that is robust in detecting bubbles - that of Phillips
 <italic>et al</italic>. (2013a). Over the period 2010-2014, we detected a
 number of short-lived bubbles; most importantly, we found three huge
 bubbles in the latter part of the period 2011-2013 lasting from 66 to
 106&nbsp;days, with the last and biggest one being the one that 'broke the
 camel's back' - the demise of the Mt Gox exchange.
Journal: Applied Economics 
Pages: 2348-2358 
Issue: 23 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005827 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005827 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2348-2358




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Seema Narayan 
Author-X-Name-First: Seema 
Author-X-Name-Last: Narayan 
Author-Name: Stephan Popp 
Author-X-Name-First: Stephan 
Author-X-Name-Last: Popp 
Author-Name: Huson Ali Ahmed 
Author-X-Name-First: Huson 
Author-X-Name-Last: Ali Ahmed 
Title: Is the efficient market hypothesis day-of-the-week dependent? Evidence from the banking sector 
Abstract:
 In this article, we propose a new hypothesis: that the efficient market
 hypothesis is day-of-the-week-dependent. We apply the test to firms
 belonging to the banking sector and listed on the NYSE. We find
 significant evidence that the efficient market hypothesis is
 day-of-the-week-dependent. Overall, for only 62% of firms, the unit root
 null hypothesis is rejected on all the five trading days. We also discover
 that when investors do not account for unit root properties in devising
 trading strategies, they obtain spurious profits.
Journal: Applied Economics 
Pages: 2359-2378 
Issue: 23 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005828 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005828 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2359-2378




Template-Type: ReDIF-Article 1.0
Author-Name: Martina Lawless 
Author-X-Name-First: Martina 
Author-X-Name-Last: Lawless 
Author-Name: Brian O'Connell 
Author-X-Name-First: Brian 
Author-X-Name-Last: O'Connell 
Author-Name: Conor O'Toole 
Author-X-Name-First: Conor 
Author-X-Name-Last: O'Toole 
Title: Financial structure and diversification of European firms 
Abstract:
 Small and medium enterprises have been shown to rely mainly on banks for
 funding and, unlike larger firms, rarely have direct access to capital
 markets. This article looks at the extent to which SMEs avail of a wider
 range of funding options and how their use differs across firms and
 countries. Across all countries, we find that firms are currently using
 two or three sources of finance to fund their operations and have had
 previous experience of other types of funding. There are some noticeable
 differences across countries with peripheral economies generally being
 less diversified. Differences across firm size and age groups are more
 marked than cross-country variation, with smaller and younger firms
 significantly more reliant on a limited set of finance types and older,
 larger firms having more diversified financial structures. Looking at
 individual sources of financing, we find that trade credit and informal
 sources of finance are extremely prevalent across all countries, with
 Irish firms being particularly likely to use them as sources of funding.
Journal: Applied Economics 
Pages: 2379-2398 
Issue: 23 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005829 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005829 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2379-2398




Template-Type: ReDIF-Article 1.0
Author-Name: Marie Poprawe 
Author-X-Name-First: Marie 
Author-X-Name-Last: Poprawe 
Title: A panel data analysis of the effect of corruption on tourism 
Abstract:
 This study empirically tests the hypothesis that corruption has a negative
 effect on tourism. Having to pay bribes while on holiday or a business
 trip increases the costs of travelling to a country where corruption is
 prevalent. Tourists are thus more likely to travel to countries where
 these additional costs do not need to be incurred. This hypothesis is
 tested using a panel data set of over 100 countries and 16&nbsp;years. The
 results indicate that a 1-point increase in the Corruption Perception
 Index (implying a decrease in corruption) results in a 2% to 7% increase
 in tourist inflows. In addition, tourist inflows rise with GDP per capita,
 openness and growth and are higher in countries with a temperate climate.
Journal: Applied Economics 
Pages: 2399-2412 
Issue: 23 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005874 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005874 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2399-2412




Template-Type: ReDIF-Article 1.0
Author-Name: Kostas Mavromaras 
Author-X-Name-First: Kostas 
Author-X-Name-Last: Mavromaras 
Author-Name: Peter Sloane 
Author-X-Name-First: Peter 
Author-X-Name-Last: Sloane 
Author-Name: Zhang Wei 
Author-X-Name-First: Zhang 
Author-X-Name-Last: Wei 
Title: The scarring effects of unemployment, low pay and skills under-utilization in Australia compared 
Abstract:
 There is a substantial literature on the scarring effects of unemployment
 on future employment prospects and a smaller one on the scarring effects
 of low pay, but the possibility that skills mismatch, in the form of
 skills under-utilization, may have similar detrimental effects has not
 been considered before. We use the Household, Income and Labour Dynamics
 in Australia panel to investigate the dynamics of unemployment, low pay
 and skills under-utilization, including differences by gender and
 education. We show that, in addition to earlier evidence on wage penalties
 and reduced job satisfaction, skills under-utilization scars future
 employment prospects in a way similar to that of low pay.
Journal: Applied Economics 
Pages: 2413-2429 
Issue: 23 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008762 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008762 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2413-2429




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Bruestle 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Bruestle 
Author-Name: W. Mark Crain 
Author-X-Name-First: W. Mark 
Author-X-Name-Last: Crain 
Title: A mean-variance approach to forecasting with the consumer confidence index 
Abstract:
 This article refines the way consumer confidence survey data are used in
 forecasting models. The refinement is easy to describe: it extends
 existing models by controlling for statistically significant changes in
 consumer confidence index values. The motivation behind this refinement is
 simply that not all changes in the confidence index are statistically
 significant, and mean index values alone provide a noisy signal. Using
 Michigan Index of Consumer Confidence from 1967 through 2013, we show that
 controlling for significant versus insignificant changes in the consumer
 confidence index materially enhances the explanatory power of household
 expenditure forecasting models.
Journal: Applied Economics 
Pages: 2430-2444 
Issue: 23 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008763 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008763 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2430-2444




Template-Type: ReDIF-Article 1.0
Author-Name: D. Ventosa-Santaul಩a 
Author-X-Name-First: D. 
Author-X-Name-Last: Ventosa-Santaul಩a 
Author-Name: M. G󭥺-Zald񸑲 
Author-X-Name-First: M. 
Author-X-Name-Last: G󭥺-Zald񸑲 
Author-Name: F. H. Wallace 
Author-X-Name-First: F. H. 
Author-X-Name-Last: Wallace 
Title: The real exchange rate, regime changes and volatility shifts 
Abstract:
 We make use of a data-set with both long span and high frequency to test
 for purchasing power parity (PPP) while allowing for a structural shift in
 the volatility of the Mexico-US bilateral real exchange rate (RER). The
 Kim, Leybourne and Newbold (2002) unit root test, robust to changes in the
 innovation variance, indicates mean stationarity of the monthly RER, and
 hence evidence of PPP, for the full sample, 1930-2012, and various
 subsamples. The persistence of deviations of the real rate from its PPP
 level as measured by half-lives ranges from 1.37 to 2.41&nbsp;years.
Journal: Applied Economics 
Pages: 2445-2454 
Issue: 24 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005821 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005821 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2445-2454




Template-Type: ReDIF-Article 1.0
Author-Name: Burkhard Raunig 
Author-X-Name-First: Burkhard 
Author-X-Name-Last: Raunig 
Title: Firm credit risk in normal times and during the crisis: are banks less risky? 
Abstract:
 Bank solvency was a major issue during the financial crisis of 2007-2009,
 but bank credit default swap (CDS) spreads were almost always below
 nonbank CDS spreads. What is the reason for this gap? Are banks perceived
 to be less risky? This study empirically decomposes CDS premia for 45
 major banks and 167 large industrial firms from Europe and the US. It
 turns out that expected losses are usually somewhat lower for banks than
 for nonbanks, but expected losses contribute relatively little to the
 observed CDS premia. CDS spreads for banks and nonbanks differ mainly
 because market participants require a lower compensation for bearing bank
 credit risk. The quite persistent difference in the credit risk premia for
 banks and nonbanks disappears only temporarily during the crisis.
Journal: Applied Economics 
Pages: 2455-2469 
Issue: 24 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008758 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008758 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2455-2469




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Healy 
Author-X-Name-First: Joshua 
Author-X-Name-Last: Healy 
Author-Name: Kostas Mavromaras 
Author-X-Name-First: Kostas 
Author-X-Name-Last: Mavromaras 
Author-Name: Peter J. Sloane 
Author-X-Name-First: Peter J. 
Author-X-Name-Last: Sloane 
Title: Adjusting to skill shortages in Australian SMEs 
Abstract:
 Skill shortages are often portrayed as a major problem for advanced
 economies, yet there is surprisingly little empirical evidence about how
 firms adjust to skill shortages and their associated effects on firm
 performance. This article provides new evidence from the Business
 Longitudinal Database, an Australian data set with unusually rich
 information on the causes and consequences of skill shortages in small-
 and medium-sized enterprises. We document the range of alternative
 strategies that firms adopt when responding to skill shortages and show
 that certain types of adaptation are used in some cases and not in others,
 depending on the type of shortage encountered and other attributes of the
 firm. Further, we show that certain types of skill shortage are more
 likely to be long-lasting and difficult to resolve, while others are
 alleviated relatively quickly with minimal adjustment. Our findings yield
 lessons for the skill utilization strategies of firms and for the labour
 market policies of governments.
Journal: Applied Economics 
Pages: 2470-2487 
Issue: 24 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008764 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008764 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2470-2487




Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Shun Tsai 
Author-X-Name-First: Yung-Shun 
Author-X-Name-Last: Tsai 
Author-Name: Chien-Chih Lin 
Author-X-Name-First: Chien-Chih 
Author-X-Name-Last: Lin 
Author-Name: Hsiao-Yin Chen 
Author-X-Name-First: Hsiao-Yin 
Author-X-Name-Last: Chen 
Title: Optimal diversification, bank value maximization and default probability 
Abstract:
 This study argues that the optimal level of diversification for the
 maximization of bank value is asymmetrical and depends on the business
 cycle. During times of expansion, systematic risks are relatively low;
 hence, the effect of raising systematic risks from portfolio
 diversification is slight. Consequently, the benefit of reducing
 individual risks dominates any loss from raising systematic risks, leading
 to a higher value for a bank by holding a diversified portfolio of assets.
 On the contrary, during times of recession, systematic risks are
 relatively high. It is more likely that the loss from raising systematic
 risks surpasses the benefit of reducing individual risks from portfolio
 diversification. Consequently, more diversification leads to lower bank
 values. Finally, some empirical evidence from the banks in Taiwan is
 provided.
Journal: Applied Economics 
Pages: 2488-2499 
Issue: 24 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008766 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008766 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2488-2499




Template-Type: ReDIF-Article 1.0
Author-Name: Stijn Van Puyvelde 
Author-X-Name-First: Stijn 
Author-X-Name-Last: Van Puyvelde 
Author-Name: Ralf Caers 
Author-X-Name-First: Ralf 
Author-X-Name-Last: Caers 
Author-Name: Cind Du Bois 
Author-X-Name-First: Cind 
Author-X-Name-Last: Du Bois 
Author-Name: Marc Jegers 
Author-X-Name-First: Marc 
Author-X-Name-Last: Jegers 
Title: Does organizational ownership matter? Objectives of employees in public, nonprofit and for-profit nursing homes 
Abstract:
 Does organizational ownership matter for employees? We conducted a
 discrete choice experiment to reveal employees' objectives in for-profit,
 nonprofit and governmental nursing homes. The results indicate that
 differences in objectives among nursing home staff are at least partially
 related to differences in ownership type. More specifically, we find that
 employees of public nursing homes are less extrinsically motivated than
 their for-profit and nonprofit counterparts. However, the results also
 show that employees of for-profit, nonprofit and governmental nursing
 homes are trading off output quality and output quantity differently, in
 line with the view that public providers of elderly care are pursuing a
 supplier-of-last-resort objective function.
Journal: Applied Economics 
Pages: 2500-2513 
Issue: 24 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008767 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008767 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2500-2513




Template-Type: ReDIF-Article 1.0
Author-Name: Jinfang Li 
Author-X-Name-First: Jinfang 
Author-X-Name-Last: Li 
Title: The asymmetric effects of investor sentiment and monetary policy on stock prices 
Abstract:
 We examine the impact of investor sentiment and monetary policy on the
 stock prices under different market states based on the Markov-switching
 vector autoregression (MS-VAR) model. The results show that the sentiment
 shocks, more than monetary policy shocks, lead to not only much larger
 fluctuations of stock prices but also much longer duration in the stock
 market downturn than in the stock market expansion, which shows obvious
 asymmetric effect. Moreover, the responses of stock prices to the
 sentiment shocks present an immediate effect, while the responses of stock
 prices to the monetary policy shocks show one-period lag effect.
Journal: Applied Economics 
Pages: 2514-2522 
Issue: 24 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008770 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008770 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2514-2522




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon 
Author-X-Name-First: Robert 
Author-X-Name-Last: Dixon 
Author-Name: G. C. Lim 
Author-X-Name-First: G. C. 
Author-X-Name-Last: Lim 
Author-Name: Jan C. van Ours 
Author-X-Name-First: Jan C. 
Author-X-Name-Last: van Ours 
Title: The effect of shocks to labour market flows on unemployment and participation rates 
Abstract:
 This article presents an analysis of labour market dynamics, in particular
 of flows in the labour market and how they interact and affect the
 evolution of unemployment rates and participation rates, the two main
 indicators of labour market performance. Our analysis has two special
 features. First, apart from the two labour market states - employment and
 unemployment - we consider a third state - out of the labour force.
 Second, we study net rather than gross flows, where net refers to the
 balance of flows between any two labour market states. Distinguishing a
 third state is important because the labour market flows to and from that
 state are quantitatively important. Focusing on net flows simplifies the
 complexity of interactions between the flows and allows us to perform a
 dynamic analysis in a structural vector-autoregression framework. We find
 that a shock to the net flow from unemployment to employment drives the
 unemployment rate and the participation rate in opposite directions while
 a shock to the net flow from not in the labour force to unemployment
 drives the rates in the same direction.
Journal: Applied Economics 
Pages: 2523-2539 
Issue: 24 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008771 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008771 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2523-2539




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti 
Author-X-Name-First: Leonardo 
Author-X-Name-Last: Becchetti 
Author-Name: Rocco Ciciretti 
Author-X-Name-First: Rocco 
Author-X-Name-Last: Ciciretti 
Author-Name: Ambrogio Dal&ograve; 
Author-X-Name-First: Ambrogio 
Author-X-Name-Last: Dal&ograve; 
Author-Name: Stefano Herzel 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Herzel 
Title: Socially responsible and conventional investment funds: performance comparison and the global financial crisis 
Abstract:
 We investigate the performance of socially responsible funds (SRFs) and
 conventional funds (CFs) in different market (geographical area and class
 size) segments during the period 1992-2012. From an unbalanced sample of
 more than 22&nbsp;000 funds, we define a matched sample using a
 beta-distance measure to match any SRF with the 'nearest neighbour' CF in
 terms of sensitivity to risk factors. Using this matching approach and a
 recursive analysis, we identify several switch points in the lead/lag
 relationship between the two investment styles over time in different
 market segments. A relevant finding of our analysis is that SRFs played an
 'insurance role' outperforming CFs during the 2007 global financial
 crisis.
Journal: Applied Economics 
Pages: 2541-2562 
Issue: 25 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2014.1000517 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000517 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2541-2562




Template-Type: ReDIF-Article 1.0
Author-Name: Rigoberto A. Lopez 
Author-X-Name-First: Rigoberto A. 
Author-X-Name-Last: Lopez 
Author-Name: Yizao Liu 
Author-X-Name-First: Yizao 
Author-X-Name-Last: Liu 
Author-Name: Chen Zhu 
Author-X-Name-First: Chen 
Author-X-Name-Last: Zhu 
Title: TV advertising spillovers and demand for private labels: the case of carbonated soft drinks 
Abstract:
 The expansion of private labels, or store brands, has transformed consumer
 choice sets and competition in retail markets, prompting manufacturers to
 fight back with renewed pricing and product and promotion strategies to
 forestall further private label expansion. This article examines the
 spillover effects of television advertising on brand-level consumer demand
 for carbonated soft drinks (CSDs), including private labels, using a
 random coefficients logit model with household purchasing and advertising
 viewing Nielsen data. As in previous work, we find that although brand
 spillover effects significantly increase demand for CSD brands in the same
 company and undermine demand facing other manufacturers' CSD brands,
 surprisingly, there are <italic>positive</italic> spillover effects on the
 demand for private label brands. This indicates that brand advertising is
 persuasive with respect to manufacturers' brands but complementary with
 respect to private labels. Further results show that eliminating
 television advertising for CSDs would lower aggregate CSD sales as
 consumers migrate to other beverages, although private labels stand to
 gain, particularly Wal-Mart brands.
Journal: Applied Economics 
Pages: 2563-2576 
Issue: 25 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2014.1002899 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002899 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2563-2576




Template-Type: ReDIF-Article 1.0
Author-Name: M. V. Esteban 
Author-X-Name-First: M. V. 
Author-X-Name-Last: Esteban 
Author-Name: E. Ferreira 
Author-X-Name-First: E. 
Author-X-Name-Last: Ferreira 
Author-Name: S. Orbe-Mandaluniz 
Author-X-Name-First: S. 
Author-X-Name-Last: Orbe-Mandaluniz 
Title: Nonparametric methods for estimating and testing for constant betas in asset pricing models 
Abstract:
 In this article, we study the performance of a smoothing spline method in
 estimating and testing for constant betas in two well-known asset pricing
 models, the usual market model and the three-factor model. The spline
 estimator is computed taking into account the conditional
 heteroscedasticity of the errors. Using the right model and estimation
 procedure for the variance term plays a crucial role in gaining efficiency
 in beta estimators. A simulation study shows the good performance of our
 method; in all the scenarios simulated, it outperforms the benchmark
 rolling estimator. The method enables users to obtain confidence intervals
 and to test for the significance and constancy of betas. Finally, the
 method is applied to US data, comprising 25 portfolios formed based on
 size and the ratio of book equity to market equity. The results show that
 the time-variability of the betas plays an important role, mainly when
 sensitivity to the <italic>HML</italic> factor is considered.
Journal: Applied Economics 
Pages: 2577-2607 
Issue: 25 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1005812 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005812 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2577-2607




Template-Type: ReDIF-Article 1.0
Author-Name: Bing Xu 
Author-X-Name-First: Bing 
Author-X-Name-Last: Xu 
Title: Oil prices and UK industry-level stock returns 
Abstract:
 In this article, we study whether the behaviour of oil prices can be used
 as a reliable predictor for the disaggregated industry-level stock market
 indices. We find strong evidence for the relevance of changes in oil price
 as a predictor for the returns of UK industry portfolios, while this
 relevance is heterogeneous across industries. In an out-of-sample
 framework, we find that both the contemporaneous and lagged oil price
 changes do predict UK industry stock market returns. The predictive power
 is more transient for the latter case, and mostly appearing after allowing
 for time variation in the relative performance. In addition, we find some
 evidence of asymmetry in the oil-stock price relationships.
Journal: Applied Economics 
Pages: 2608-2627 
Issue: 25 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008760 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008760 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2608-2627




Template-Type: ReDIF-Article 1.0
Author-Name: Abdur R. Chowdhury 
Author-X-Name-First: Abdur R. 
Author-X-Name-Last: Chowdhury 
Author-Name: Mark Wheeler 
Author-X-Name-First: Mark 
Author-X-Name-Last: Wheeler 
Title: The impact of output and exchange rate volatility on fixed private investment: evidence from selected G7 countries 
Abstract:
 This study examines the impact of shocks to exchange rate and output
 uncertainty (volatility) on real private fixed investment (FI) in Canada,
 Germany, the United Kingdom and the United States. The analysis is
 conducted using vector autoregressive models that contain the price level,
 real output, the volatility of real output, the real exchange rate, the
 volatility of the real exchange rate, an interest rate and FI. The results
 yield important public policy implications with regard to the impact of
 output volatility of FI. Our analysis indicates that volatility shocks,
 measured as output volatility or exchange rate volatility, do not have a
 significant impact on FI for any country in our study.
Journal: Applied Economics 
Pages: 2628-2641 
Issue: 25 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008761 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008761 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2628-2641




Template-Type: ReDIF-Article 1.0
Author-Name: F. Chan 
Author-X-Name-First: F. 
Author-X-Name-Last: Chan 
Author-Name: G. MacDonald 
Author-X-Name-First: G. 
Author-X-Name-Last: MacDonald 
Title: Permanent and transitory shocks in the presence of asymmetric error correction 
Abstract:
 This article highlights the potential importance of asymmetries in the
 loading vector of a set of cointegrated variables for the construction,
 analysis and interpretation of permanent and transitory shocks using
 impulse response functions. We derive an asymmetric version of the
 Permanent-Transitory decomposition suggested by Gonzalo and Ng (2001) and
 illustrate the potential importance of such asymmetries using the 'cay'
 data of Lettau and Ludvigson (2004).
Journal: Applied Economics 
Pages: 2642-2648 
Issue: 25 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008765 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008765 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2642-2648




Template-Type: ReDIF-Article 1.0
Author-Name: Annari De Waal 
Author-X-Name-First: Annari 
Author-X-Name-Last: De Waal 
Author-Name: Rene頖an Eyden 
Author-X-Name-First: Rene頍
Author-X-Name-Last: Van Eyden 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Do we need a global VAR model to forecast inflation and output in South Africa? 
Abstract:
 This study determines whether the global vector autoregressive (GVAR)
 approach provides better forecasts of key South African variables than a
 vector error correction model (VECM) and a Bayesian vector autoregressive
 (BVAR) model augmented with foreign variables. The article considers both
 a small GVAR model and a large GVAR model in determining the most
 appropriate model for forecasting South African variables. We compare the
 recursive out-of-sample forecasts for South African GDP and inflation from
 six types of models: a general 33 country (large) GVAR, a customized small
 GVAR for South Africa, a VECM for South Africa with weakly exogenous
 foreign variables, a BVAR model, autoregressive (AR) models and random
 walk models. The results show that the forecast performance of the large
 GVAR is generally superior to the performance of the customized small GVAR
 for South Africa. The forecasts of both the GVAR models tend to be better
 than the forecasts of the augmented VECM, especially at longer forecast
 horizons. Importantly, however, on average, the BVAR model performs the
 best when it comes to forecasting output, while the AR(1) model
 outperforms all the other models in predicting inflation. We also conduct
 <italic>ex ante</italic> forecasts from the BVAR and AR(1) models over
 2010:Q1-2013:Q4 to highlight their ability to track turning points in
 output and inflation, respectively.
Journal: Applied Economics 
Pages: 2649-2670 
Issue: 25 
Volume: 47 
Year: 2015 
Month: 5 
X-DOI: 10.1080/00036846.2015.1008769 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008769 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2649-2670




Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner 
Author-X-Name-First: Richhild 
Author-X-Name-Last: Moessner 
Title: Reactions of real yields and inflation expectations to forward guidance in the United States 
Abstract:
 We study the impact of forward policy rate guidance by the Federal
 Reserve's Federal Open Market Committee (FOMC) used as an unconventional
 monetary policy tool at the zero lower bound of the policy rate on real
 and breakeven US Treasury yield curves. We find that explicit FOMC policy
 rate guidance announcements led to a significant reduction in real yields
 at horizons of 2 to 5&nbsp;years ahead. By contrast, long-term breakeven
 inflation rates were little affected, suggesting that inflation
 expectations have remained well anchored, and that explicit FOMC policy
 rate guidance has not adversely affected central bank credibility.
Journal: Applied Economics 
Pages: 2671-2682 
Issue: 26 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1008759 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008759 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2671-2682




Template-Type: ReDIF-Article 1.0
Author-Name: Chunding Li 
Author-X-Name-First: Chunding 
Author-X-Name-Last: Li 
Author-Name: John Whalley 
Author-X-Name-First: John 
Author-X-Name-Last: Whalley 
Title: Chinese firm and industry reactions to antidumping initiations and measures 
Abstract:
 China has been the subject of large numbers of both antidumping
 initiations and measures. This article explores the reactions of Chinese
 firms and industries to these actions by using dynamic system GMM
 estimator and industrial panel data on all Chinese firms in the industry,
 foreign firms operating within China and state-owned enterprises (SOEs)
 for aggregated firms group between 1997 and 2007. We find that antidumping
 actions by developed and developing countries negatively impact industrial
 profits and employee and firm numbers and also exports, but improve labour
 productivity. We also find that different kinds of firms show different
 responses. All firms together in an industry react to antidumping the
 most, and foreign and SOE firms show a much smaller response. Further,
 antidumping effects from different countries are different. Developed
 countries' antidumping actions have more negative impact than developing
 countries' actions; the effects of US actions are different from the
 European Union's.
Journal: Applied Economics 
Pages: 2683-2698 
Issue: 26 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1008772 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008772 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2683-2698




Template-Type: ReDIF-Article 1.0
Author-Name: Rina Rosenblatt-Wisch 
Author-X-Name-First: Rina 
Author-X-Name-Last: Rosenblatt-Wisch 
Author-Name: Rolf Scheufele 
Author-X-Name-First: Rolf 
Author-X-Name-Last: Scheufele 
Title: Quantification and characteristics of household inflation expectations in Switzerland 
Abstract:
 Inflation expectations are a key variable in conducting monetary policy.
 However, these expectations are generally unobservable and only certain
 proxy variables exist, such as surveys on inflation expectations. This
 article offers guidance on the appropriate quantification of household
 inflation expectations in the Swiss Consumer Survey, where answers are
 qualitative in nature. We apply and evaluate different variants of the
 probability approach and the regression approach; we demonstrate that
 models that include answers on perceived inflation and allow for
 time-varying response thresholds yield the best results; and we show why
 the originally proposed approach of Fluri and Spörndli (1987) has resulted
 in heavily biased inflation expectations since the mid-1990s. Furthermore,
 we discuss some of the key features of Swiss household inflation
 expectations, i.e. the fact that there has been a shift in expectation
 formation since 2000 (expectations are better anchored and less adaptive,
 and there is lower disagreement of expectations). We suggest that this may
 be linked to the Swiss National Bank's adjustment of its monetary policy
 framework around this time. In addition, we outline how expectation
 formation in Switzerland is in line with the sticky information model,
 where information disseminates slowly from professional forecasters to
 households.
Journal: Applied Economics 
Pages: 2699-2716 
Issue: 26 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1008773 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008773 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2699-2716




Template-Type: ReDIF-Article 1.0
Author-Name: Mareva Sabatier 
Author-X-Name-First: Mareva 
Author-X-Name-Last: Sabatier 
Title: A women's boom in the boardroom: effects on performance? 
Abstract:
 This article analyses whether improving gender diversity in boardrooms
 improves firms' economic performance. In the context of French
 CAC40-listed companies between 2008 and 2012, this research uses
 instrumental variable panel regressions, including production frontier
 estimates, to arrive at two key results. First, gender diversity in boards
 depends on firms' attributes including their previous gender promotion
 strategies. Second, promoting women in boardrooms has a significant and
 positive effect on economic performance while accounting for the
 endogeneity boards' gender diversity. Gender diversity even reduces
 corporate inefficiencies and enables firms to come closer to their optimal
 performance.
Journal: Applied Economics 
Pages: 2717-2727 
Issue: 26 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1008774 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008774 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2717-2727




Template-Type: ReDIF-Article 1.0
Author-Name: Alexandru Minea 
Author-X-Name-First: Alexandru 
Author-X-Name-Last: Minea 
Author-Name: Lavinia Mustea 
Author-X-Name-First: Lavinia 
Author-X-Name-Last: Mustea 
Title: A fresh look at fiscal multipliers: one size fits it all? Evidence from the Mediterranean area 
Abstract:
 Following the adoption of important fiscal stimuli to fight the recent
 crisis, a large literature estimated fiscal multipliers. Focusing on an
 area particularly appealing, given its diversity and the diversity of the
 response of countries that compose it to the current crisis, namely the
 Mediterranean area, we unveil major disparities regarding the
 significance, sign and size of fiscal multipliers depending mainly on the
 economic characteristics, the type of multiplier, the time span and the
 type of fiscal stimulus. Evidence of such important heterogeneities
 highlights the need for better cooperation among countries, particularly
 regarding the design of fiscal policy. Failing to do so might divert
 public resources to ineffective fiscal policies in some countries, or, on
 the contrary, deprive other countries of potentially high benefits of
 appropriate fiscal policies, including a reliable tool for exiting the
 current crisis.
Journal: Applied Economics 
Pages: 2728-2744 
Issue: 26 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1008775 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008775 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2728-2744




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Czudaj 
Author-X-Name-First: Robert 
Author-X-Name-Last: Czudaj 
Author-Name: Jan Prüser 
Author-X-Name-First: Jan 
Author-X-Name-Last: Prüser 
Title: International parity relationships between Germany and the USA revisited: evidence from the post-DM period 
Abstract:
 In this study, we show the interrelation of the purchasing power parity
 and the uncovered interest rate parity between the US and Germany for the
 recent period running from 1999:01 to 2014:04. This study extends the
 literature by testing both hypotheses simultaneously in a multivariate
 ECM. This has the advantage that interactions between capital and goods
 markets can be considered simultaneously. Our finding of two long-run
 relationships between the variables shows that a disequilibrium in one of
 the two markets leads to a disequilibrium in the other. While analysing
 the reaction to cumulative shocks, we show that US variables have a
 greater impact on German variables than vice versa. Therefore, the rising
 importance of the euro and the increased integration of the European Union
 in the recent decade have not changed this relation.
Journal: Applied Economics 
Pages: 2745-2767 
Issue: 26 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1008776 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008776 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2745-2767




Template-Type: ReDIF-Article 1.0
Author-Name: Torun Fretheim 
Author-X-Name-First: Torun 
Author-X-Name-Last: Fretheim 
Author-Name: Glenn Kristiansen 
Author-X-Name-First: Glenn 
Author-X-Name-Last: Kristiansen 
Title: Commodity market risk from 1995 to 2013: an extreme value theory approach 
Abstract:
 In this article we examine whether extreme risk has increased in the
 agricultural commodity market during the period 1995-2013. We add to the
 literature on food price volatility by analysing the tail segment of
 futures price return distributions. Food price variability is a concern
 for governments and regulators worldwide, as most nations trade in food.
 High food price variability can contribute to poverty and malnourishment,
 in particular for people in less economically developed economies. We find
 no indications of systematically increasing tail-risk for the commodities
 in our sample. Analysis of estimated shape-parameters of the Generalized
 Extreme Value distribution further supports the conclusion that there is
 no general systematic change in the extreme risk associated with these
 commodity investments.
Journal: Applied Economics 
Pages: 2768-2782 
Issue: 26 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011307 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011307 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2768-2782




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos P. Barros 
Author-X-Name-First: Carlos P. 
Author-X-Name-Last: Barros 
Author-Name: Luis A. Gil-Alana 
Author-X-Name-First: Luis A. 
Author-X-Name-Last: Gil-Alana 
Author-Name: Jo&atilde;o Ricardo Faria 
Author-X-Name-First: Jo&atilde;o Ricardo 
Author-X-Name-Last: Faria 
Title: The macroeconomy of Angola: breaks and persistence in Angolan macro data 
Abstract:
 Using long-range dependence techniques we examine the order of integration
 of Angola's macro variables from a fractional viewpoint. Based on a small
 open economy model, the series examined are money reserves, credit, money
 supply, lending rate, exchange rates, CPI, GDP, oil revenues and
 government expenditure, for the period of January 2000 to December 2013.
 The results suggest that the variables are nonstationary with orders of
 integration equal to or higher than 1 suggesting nonmean-reverting
 behaviour. Structural breaks reveal that the series reflect the IMF
 intervention in Angola in 2003 to control inflation. Policy implications
 are derived.
Journal: Applied Economics 
Pages: 2783-2802 
Issue: 27 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2014.997928 
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997928 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2783-2802




Template-Type: ReDIF-Article 1.0
Author-Name: Xin Wan 
Author-X-Name-First: Xin 
Author-X-Name-Last: Wan 
Author-Name: Yuanyuan Ma 
Author-X-Name-First: Yuanyuan 
Author-X-Name-Last: Ma 
Author-Name: Kezhong Zhang 
Author-X-Name-First: Kezhong 
Author-X-Name-Last: Zhang 
Title: Political determinants of intergovernmental transfers in a regionally decentralized authoritarian regime: evidence from China 
Abstract:
 This article examines the political determinants of the allocation of
 intergovernmental transfers in the context of China. In a regionally
 decentralized authoritarian regime, a government marked by political
 centralization and fiscal decentralization, intergovernmental transfers
 are employed by politicians as instruments to achieve political goals.
 Using China's provincial data from 1994 to 2009, we find that the
 officials' political power is an important factor in the distribution
 process. A party secretary's replacement facilitates an increase in
 transfers, especially if the replacement comes from the central
 government. If a party secretary is a member of the Central Politburo, the
 province receives more conditional transfers than others. The central
 government allocates the transfers in such a way that the province with a
 high proportion of the minority population receives more transfers than
 others.
Journal: Applied Economics 
Pages: 2803-2820 
Issue: 27 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1008768 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008768 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2803-2820




Template-Type: ReDIF-Article 1.0
Author-Name: Scott Fung 
Author-X-Name-First: Scott 
Author-X-Name-Last: Fung 
Author-Name: Shih-Chuan Tsai 
Author-X-Name-First: Shih-Chuan 
Author-X-Name-Last: Tsai 
Title: Stock market-driven investment: new evidence on information, financing and agency effects 
Abstract:
 This study provides a theoretical model and empirical analysis to jointly
 examine the information, financing and agency effects, the three channels
 through which the stock market can actively influence corporate investment
 decisions and firm performance. First, stock market affects corporate
 investments, and such impact varies with different market valuation
 measures, types of investments and firm characteristics. Second, stock
 market valuation affects investments through the channel of corporate
 financing, supporting the financing hypothesis. Third, stock market-driven
 investments have differential impacts on the future operating performance
 of firms. Investments driven by market valuation of firm-specific
 information have a positive effect on future performance. In contrast,
 investments driven by market-wide sentiment have a negative effect on
 future performance. Fourth, consistent with the information hypothesis,
 market-driven investments are value-enhancing for firms with better
 external monitoring by analysts and institutional investors. Lastly,
 consistent with the agency hypothesis, market-driven investments are
 value-destroying when firms lack external monitoring, proper managerial
 incentives and independent board of directors.
Journal: Applied Economics 
Pages: 2821-2843 
Issue: 27 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011306 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011306 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2821-2843




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin R. Auer 
Author-X-Name-First: Benjamin R. 
Author-X-Name-Last: Auer 
Title: Superstitious seasonality in precious metals markets? Evidence from GARCH models with time-varying skewness and kurtosis 
Abstract:
 In this article, we analyse whether the Friday the 13th effect documented
 by Kolb and Rodriguez (1987) can be observed in precious metals markets.
 Specifically, we use dummy-augmented GARCH models to investigate the
 impact of this specific calendar day on the conditional means of gold,
 silver, palladium and platinum returns. The specification of the GARCH
 model follows a flexible class recently proposed by Le󮠥t al. (2005)
 that incorporates time-varying skewness and kurtosis by applying a
 Gram-Charlier series expansion of the normal density function. Our results
 for the period from July 1996 to August 2013 provide three important
 insights. First, there is no evidence that human superstition regarding
 bad luck Fridays affects precious metals markets in a negative way, i.e.
 returns on Fridays the 13th are not significantly lower than on regular
 Fridays. Second, besides showing robustness in a variety of settings, we
 can confirm this main result in a sensitivity check, where we replace the
 dummy variables by a new measure of investor attention, recently promoted
 by Da et al. (2011), that is based on Google search volumes. Third, as an
 important by-product of our study, we can show that there is significant
 evidence of time-varying skewness and kurtosis in precious metals returns.
Journal: Applied Economics 
Pages: 2844-2859 
Issue: 27 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011308 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011308 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2844-2859




Template-Type: ReDIF-Article 1.0
Author-Name: A. Leonhardt 
Author-X-Name-First: A. 
Author-X-Name-Last: Leonhardt 
Author-Name: A. W. Rathgeber 
Author-X-Name-First: A. W. 
Author-X-Name-Last: Rathgeber 
Author-Name: J. Stadler 
Author-X-Name-First: J. 
Author-X-Name-Last: Stadler 
Author-Name: S. Stöckl 
Author-X-Name-First: S. 
Author-X-Name-Last: Stöckl 
Title: Pricing fx forwards in OTC markets - new evidence for the pricing mechanism when faced with counterparty risk 
Abstract:
 By using daily foreign exchange (fx) market data for five major currency
 pairs, this article shows that, especially since the beginning of the
 financial crisis, pricing of fx forwards has not matched the pricing
 formula derived from the covered interest rate parity (CIP). This
 corresponds to previous empirical results. Therefore, the CIP leads to
 systematic over- or underpricing. Overall, four statistically significant
 explanatory factors for this systematic over- or underpricing have been
 identified - the volatility in the difference between the interest rate
 levels, the spot price, the fx forward spread and the counterparty risk.
 In particular, the high significance of the counterparty risk demonstrates
 that pricing models for fx forwards should be reviewed.
Journal: Applied Economics 
Pages: 2860-2877 
Issue: 27 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011309 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011309 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2860-2877




Template-Type: ReDIF-Article 1.0
Author-Name: Roselyne Joyeux 
Author-X-Name-First: Roselyne 
Author-X-Name-Last: Joyeux 
Author-Name: George Milunovich 
Author-X-Name-First: George 
Author-X-Name-Last: Milunovich 
Title: Speculative bubbles, financial crises and convergence in global real estate investment trusts 
Abstract:
 We test for price bubbles in 14 national real estate investment trust
 (REIT) markets, and measure the degree of their convergence towards a
 common trend. Our methodology consists of the recently developed test of
 Phillips, Shi and Yu (2014) for mildly explosive processes, and the
 Phillips and Sul (2007) method for modelling convergence among random
 variables. We find evidence of explosive behaviour in index levels of
 seven of the 14 markets. In contrast, explosive dynamics are found in only
 one price/dividend ratio. More than half of the episodes of explosive
 behaviour are date-stamped to periods prior to the 2007-2009 financial
 crisis. We also discover a number of periods over which the markets
 converge towards a common trend. Interestingly, all of the convergence
 intervals coincide either with periods of crisis, or with periods of
 market exuberance. For instance, evidence of convergence is found during
 the 2000 dot-com crash, the 2007-2009 subprime crisis and the 2010-2013
 European sovereign debt crisis, as well as over the bubble period of
 2004-2005.
Journal: Applied Economics 
Pages: 2878-2898 
Issue: 27 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011310 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011310 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2878-2898




Template-Type: ReDIF-Article 1.0
Author-Name: Wu-Yueh Hu 
Author-X-Name-First: Wu-Yueh 
Author-X-Name-Last: Hu 
Title: The role of risk and risk-aversion in adoption of alternative marketing arrangements by the US farmers 
Abstract:
 The objective of this article is to analyse the relationship between
 farmers' risk-aversions and the riskiness of various agricultural
 enterprises to see which marketing arrangements would typically emerge.
 Relying on the basic agency theory model, we hypothesize the prevalence of
 alternative marketing arrangements (AMAs) in situations with high
 risk-averse farmers and high-risk enterprises and the prevalence of spot
 (cash) markets for low risk-averse participants and less risky
 enterprises. Our empirical tests are carried out using the 2004
 Agricultural Resource Management Survey (ARMS). The empirical results are
 largely supportive of the agency theory of contract choice.
Journal: Applied Economics 
Pages: 2899-2912 
Issue: 27 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011311 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011311 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2899-2912




Template-Type: ReDIF-Article 1.0
Author-Name: Anis Omri 
Author-X-Name-First: Anis 
Author-X-Name-Last: Omri 
Author-Name: Saida Daly 
Author-X-Name-First: Saida 
Author-X-Name-Last: Daly 
Author-Name: Duc Khuong Nguyen 
Author-X-Name-First: Duc Khuong 
Author-X-Name-Last: Nguyen 
Title: A robust analysis of the relationship between renewable energy consumption and its main drivers 
Abstract:
 We provide a comprehensive and robust analysis of the drivers of renewable
 energy consumption for a panel of 64 countries, using both the static
 (Pooled OLS, Panel Fixed and Random Effects) and dynamic (difference and
 system GMM) panel data estimation approaches. We show that the dynamic
 panel data model provides more efficient estimators than the static ones
 and that increases in per capita CO<sub>2</sub> emissions and per capita
 trade with foreign partners mainly drive the changes in per capita
 renewable energy consumption. We also find limited evidence of oil price
 effects on renewable energy consumption, which reflects the fact that
 renewable energy is just a complement and not a perfect substitute of
 crude oil, at least in the short run.
Journal: Applied Economics 
Pages: 2913-2923 
Issue: 28 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011312 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011312 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2913-2923




Template-Type: ReDIF-Article 1.0
Author-Name: Seeun Jung 
Author-X-Name-First: Seeun 
Author-X-Name-Last: Jung 
Title: Does education affect risk aversion? Evidence from the British education reform 
Abstract:
 Individual risk attitudes are frequently used to predict decisions
 regarding education. However, using risk attitudes as a control variable
 for decisions about education has been criticized because of the potential
 for reverse causality. Causality between risk aversion and education is
 unclear, and disentangling the different directions it may run is
 difficult. In this study, we make the first attempt to investigate the
 causal effects of education on risk aversion by examining the British
 education reform of 1972, which increased the duration of compulsory
 schooling from age 15 to age 16. Using regression discontinuity design, we
 find that this additional year of schooling increases the level of risk
 aversion, which is contrary to previous findings in the literature, and we
 also find that this result is particularly strong for individuals with
 less education. This positive causal effect of education on risk aversion
 might alleviate concerns regarding the endogeneity/reverse causality issue
 when using risk aversion as an explanatory variable for decisions about
 education; the sign would remain credible because the coefficients are
 underestimated.
Journal: Applied Economics 
Pages: 2924-2938 
Issue: 28 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011313 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011313 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2924-2938




Template-Type: ReDIF-Article 1.0
Author-Name: Barry R. Chiswick 
Author-X-Name-First: Barry R. 
Author-X-Name-Last: Chiswick 
Author-Name: Nicholas Larsen 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Larsen 
Author-Name: Paul Pieper 
Author-X-Name-First: Paul 
Author-X-Name-Last: Pieper 
Title: The awarding of PhDs in the United States and Canada: war, the draft and other economic determinants 
Abstract:
 This article is concerned with the awarding of PhDs in the USA and Canada
 in the post-WW II period, overall, by gender and major academic
 discipline. The effects of the explanatory variables lagged by
 6&nbsp;years, to allow for time-to-degree completion, are consistent with
 the model. Military conscription with educational exemptions and the
 Vietnam War increased male PhDs in the USA, but, as expected, had no
 effect for US females or in Canada. This suggests that the war and draft
 effect for US males were not reflecting other unmeasured North American
 effects. Government expenditures on research and development enhanced the
 PhD production, especially for males and in the physical sciences. The
 cyclical indicator, the adult male unemployment rate, has a weak positive
 effect for males in both the USA and Canada, suggesting that during the
 post-WW II period, the positive effect on graduate-level education of the
 reduced opportunity cost of time due to a recession was stronger than the
 negative wealth effect of the recession. Other variables the same, there
 has been an increase over time in the female receipts of the PhD, but
 there is no such trend for males. While males still receive more PhDs per
 year than females, the gender gap has decreased over time.
Journal: Applied Economics 
Pages: 2939-2958 
Issue: 28 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011314 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011314 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2939-2958




Template-Type: ReDIF-Article 1.0
Author-Name: Don U. A. Galagedera 
Author-X-Name-First: Don U. A. 
Author-X-Name-Last: Galagedera 
Author-Name: John Watson 
Author-X-Name-First: John 
Author-X-Name-Last: Watson 
Title: Benchmarking superannuation funds based on relative performance 
Abstract:
 In this article, we assess fund performance using data envelopment
 analysis (DEA). For each inefficient fund, DEA provides a set of role
 model funds whose best practices may be emulated for performance
 improvement. We find that the role models of most inefficient funds
 consist entirely of funds different from their own type. To overcome this
 situation, we suggest a multi-step DEA procedure. The procedure starts by
 categorizing funds on a hierarchical basis. We establish the hierarchy
 based on the frequency of efficient funds that belong to each fund type.
 Thereafter, a set of role model funds for each inefficient fund is found
 by pooling the funds in its own category and the funds that belongs to the
 categories at the lower levels in the hierarchy and applying DEA. This
 procedure is repeated by augmenting the pool with funds at the next higher
 level and so on until all the sampled funds are included. At each step, a
 set of role models is identified. An inefficient fund can thus reach the
 efficient frontier in stages. Statistical evidence suggests that
 membership and proportion of risky assets may have a negative association,
 and the fund size may have a positive association with fund performance.
Journal: Applied Economics 
Pages: 2959-2973 
Issue: 28 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011315 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011315 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2959-2973




Template-Type: ReDIF-Article 1.0
Author-Name: Aymen Belgacem 
Author-X-Name-First: Aymen 
Author-X-Name-Last: Belgacem 
Author-Name: Anna Creti 
Author-X-Name-First: Anna 
Author-X-Name-Last: Creti 
Author-Name: Khaled Guesmi 
Author-X-Name-First: Khaled 
Author-X-Name-Last: Guesmi 
Author-Name: Amine Lahiani 
Author-X-Name-First: Amine 
Author-X-Name-Last: Lahiani 
Title: Volatility spillovers and macroeconomic announcements: evidence from crude oil markets 
Abstract:
 The paper applies an event study methodologyaims to investigate the
 macroeconomic announcements effects on Standard&Poor's500 and oil prices.
 Our results provide evidence for a significant impact of the US
 macroeconomic news on oil prices. This impact is split into two
 components, namely the direct effect (common response) and indirect effect
 (volatility transmission). Altogether our results show that the volatility
 transmission is bidirectional. Not only a significant volatility
 transmission from the oil market to the US stock market is revealed, but
 also a high volatility transmission is recorded from the oil market to the
 stock market especially after the release of consumption indicators.
Journal: Applied Economics 
Pages: 2974-2984 
Issue: 28 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011316 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011316 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2974-2984




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Balcilar 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Anandamayee Majumdar 
Author-X-Name-First: Anandamayee 
Author-X-Name-Last: Majumdar 
Author-Name: Stephen M. Miller 
Author-X-Name-First: Stephen M. 
Author-X-Name-Last: Miller 
Title: Was the recent downturn in US real GDP predictable? 
Abstract:
 This article uses a small set of variables - real GDP, the inflation rate
 and the short-term interest rate - and a rich set of models - atheoretical
 (time series) and theoretical (structural), linear and nonlinear, as well
 as classical and Bayesian models - to consider whether we could have
 predicted the recent downturn of the US real GDP. Comparing the
 performance of the models to the benchmark random-walk model by root
 mean-square errors, the two structural (theoretical) models, especially
 the nonlinear model, perform well on average across all forecast horizons
 in our <italic>ex post</italic>, out-of-sample forecasts, although at
 specific forecast horizons certain nonlinear atheoretical models perform
 the best. The nonlinear theoretical model also dominates in our <italic>ex
 ante</italic>, out-of-sample forecast of the Great Recession, suggesting
 that developing forward-looking, microfounded, nonlinear, dynamic
 stochastic general equilibrium models of the economy may prove crucial in
 forecasting turning points.
Journal: Applied Economics 
Pages: 2985-3007 
Issue: 28 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011317 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011317 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2985-3007




Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Curi 
Author-X-Name-First: Claudia 
Author-X-Name-Last: Curi 
Author-Name: Cinzia Daraio 
Author-X-Name-First: Cinzia 
Author-X-Name-Last: Daraio 
Author-Name: Patrick Llerena 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Llerena 
Title: The productivity of French technology transfer offices after government reforms 
Abstract:
 This article assesses the productivity change of the French technology
 transfer offices (TTOs) after the introduction of the July 1999 innovation
 law and the new public management oriented reform. By using Data
 Envelopment Analysis (DEA)-based Malmquist productivity index, we find an
 average increase in the short-term productivity of the French TTOs driven
 by both positive efficiency and technology change. The bootstrap analysis
 reveals that these improvements are ascribed to 50% of the TTO systems,
 while the remaining part does not show significant changes. Moreover,
 while older TTOs positively contribute to the performance of French TTOs
 in the short run, young TTOs with hospital seem to contribute negatively
 to the efficiency of the entire system.
Journal: Applied Economics 
Pages: 3008-3019 
Issue: 28 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011318 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011318 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:3008-3019




Template-Type: ReDIF-Article 1.0
Author-Name: Qi He 
Author-X-Name-First: Qi 
Author-X-Name-Last: He 
Author-Name: Hong Fang 
Author-X-Name-First: Hong 
Author-X-Name-Last: Fang 
Author-Name: Miao Wang 
Author-X-Name-First: Miao 
Author-X-Name-Last: Wang 
Author-Name: Bo Peng 
Author-X-Name-First: Bo 
Author-X-Name-Last: Peng 
Title: Trade liberalization and trade performance of environmental goods: evidence from Asia-Pacific economic cooperation members 
Abstract:
 In this article, we study the impact of trade liberalization, including
 reductions in both tariff and nontariff trade barriers, on environmental
 goods (EGs) exports. Using bilateral trade data from 20 Asia-Pacific
 Economic Cooperation members, we find that tariff reduction in an
 exporting country has a larger positive impact on its exports of EGs than
 tariff reduction in an importing country. Our results also show that a
 lower nontariff barrier in an importing country increases its imports of
 EGs. A considerable amount of heterogeneity also exists in subsample
 results based on countries' income levels.
Journal: Applied Economics 
Pages: 3021-3039 
Issue: 29 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011319 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011319 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3021-3039




Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Mothe 
Author-X-Name-First: Caroline 
Author-X-Name-Last: Mothe 
Author-Name: Uyen T. Nguyen-Thi 
Author-X-Name-First: Uyen T. 
Author-X-Name-Last: Nguyen-Thi 
Author-Name: Phu Nguyen-Van 
Author-X-Name-First: Phu 
Author-X-Name-Last: Nguyen-Van 
Title: Assessing complementarity in organizational innovations for technological innovation: the role of knowledge management practices 
Abstract:
 We empirically investigate the pattern of complementarity among four
 organizational practices. Firm-level data were drawn from the Community
 Innovation Survey, carried out in Luxembourg. Supermodularity tests
 confirm the crucial role of organizational innovation in raising firms'
 technological innovation. The pattern of complementarity across
 organizational practices differs according to the type of innovation (i.e.
 product or process), as well as according to whether the firm is in the
 first stage of its innovation process (i.e. being innovative or not) or in
 a later stage (i.e. sales of new products).
Journal: Applied Economics 
Pages: 3040-3058 
Issue: 29 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011320 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011320 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3040-3058




Template-Type: ReDIF-Article 1.0
Author-Name: B. Faye 
Author-X-Name-First: B. 
Author-X-Name-Last: Faye 
Author-Name: E. Le Fur 
Author-X-Name-First: E. 
Author-X-Name-Last: Le Fur 
Author-Name: S. Prat 
Author-X-Name-First: S. 
Author-X-Name-Last: Prat 
Title: Dynamics of fine wine and asset prices: evidence from short- and long-run co-movements 
Abstract:
 This article examines short- and long-term price linkages among the
 majority of fine wine and equity markets over the period of 2003 to 2012.
 We do not consider the price index (LIV-EX 100 or 500), as is typically
 undertaken in previous studies, but rather examine the auction price
 series of the world's most traded wine-vintage pairs (5 Bordeaux first
 growth, 8 Bordeaux second growth, 5 Burgundy, 3 Rhone, 4 Italian, 5
 Californian, 1 Australian and 1 Portuguese). A global equity index is also
 included using the Morgan Stanley Capital International World.
 Cointegration procedures, the Granger non-causality test, and ECM are used
 to analyse short- and long-run relationships among these markets. The
 results indicate a strong effect of financial markets on wine prices and
 short-term causality for certain wines. Moreover, the findings indicate
 short-run causality between the wines themselves, revealing a leader
 (exogenous) or follower (endogenous) status of certain fine wines in price
 dynamics, and also long-run causality for endogenous wines. This approach
 is relevant to portfolio diversification strategies and allows price
 movements to be anticipated more accurately than using an index approach.
Journal: Applied Economics 
Pages: 3059-3077 
Issue: 29 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011321 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011321 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3059-3077




Template-Type: ReDIF-Article 1.0
Author-Name: Hem C. Basnet 
Author-X-Name-First: Hem C. 
Author-X-Name-Last: Basnet 
Author-Name: Kamal P. Upadhyaya 
Author-X-Name-First: Kamal P. 
Author-X-Name-Last: Upadhyaya 
Title: Impact of oil price shocks on output, inflation and the real exchange rate: evidence from selected ASEAN countries 
Abstract:
 This article analyses the impact of oil price shocks on real output,
 inflation and the real exchange rate in Thailand, Malaysia, Singapore, the
 Philippines and Indonesia (ASEAN-5) using a Structural VAR model. The
 cointegration tests indicate that the macroeconomic variables of these
 countries are cointegrated and share common trends in the long run. The
 impulse response functions reveal that oil price fluctuations do not
 impact the ASEAN-5 economies in the long run and much of its effect is
 absorbed within five to six quarters. The variance decomposition results
 further assert that with a few exceptions oil price shocks do not explain
 a significant variation in any of the variables under consideration. We
 also identify a very unique pattern of response to oil price fluctuations
 between Malaysia and Singapore and between the Philippines and Thailand.
 The pairs exhibit a high degree of similarity in their responses; they do
 not share any commonalities across the group.
Journal: Applied Economics 
Pages: 3078-3091 
Issue: 29 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011322 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011322 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3078-3091




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner 
Author-X-Name-First: Joachim 
Author-X-Name-Last: Wagner 
Author-Name: John P. Weche Gelübcke 
Author-X-Name-First: John P. 
Author-X-Name-Last: Weche Gelübcke 
Title: Access to finance, foreign ownership and foreign takeovers in Germany 
Abstract:
 With this article we present the first microeconometric analysis of the
 impact of a foreign acquisition on the target firm's access to finance. By
 using a large database of German firms, we furthermore investigate for the
 first time the link between foreign ownership and access to finance in
 Germany, one of the world's leading target countries for FDI. We use newly
 available comprehensive panel data that we constructed from information
 collected by the German statistical offices and from credit rating scores
 supplied by the leading German credit rating agency. We find foreign-owned
 firms in German manufacturing on average to show slightly more financing
 restrictions than domestically owned enterprises, but this very small
 difference diminishes once unobserved heterogeneity is taken into account.
 We further demonstrate that one reason for this finding is the preference
 of foreign investors for targets with relatively low credit-worthiness.
 Although the likelihood of a foreign acquisition appears to be correlated
 with credit rating, there is no impact of foreign takeovers on the credit
 constraints of the target firms <italic>ex post</italic> and therefore no
 support for the hypothesis that foreign takeovers ease financial
 frictions.
Journal: Applied Economics 
Pages: 3092-3112 
Issue: 29 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011323 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011323 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3092-3112




Template-Type: ReDIF-Article 1.0
Author-Name: Jingjing Zhang 
Author-X-Name-First: Jingjing 
Author-X-Name-Last: Zhang 
Author-Name: Partha Gangopadhyay 
Author-X-Name-First: Partha 
Author-X-Name-Last: Gangopadhyay 
Title: Dynamics of environmental quality and economic development: the regional experience from Yangtze River Delta of China 
Abstract:
 This article investigates the dynamic relationship between economic
 progress and environmental quality at a regional level. An important
 economic intuition in this context is that environmental degradation will
 be limited by human behaviour if costs and benefits of such degradation
 are local since economic agents will then be incentivized to choose
 appropriate corrective action. Therefore, we note the likelihood that
 regional economic development can help regions 'grow out of' environmental
 problems. Using a new data set from Yangtze River Delta of China, we find
 a strong confirmation of the intuition that human can and will resolve the
 environmental problem by altering the damaging behaviour of economic
 agents. A very interesting finding of this study is that the relationship
 between environmental quality and economic progress measured by per capita
 income can display a wave-like function in the case of water pollution, as
 opposed to the much dramatized environmental Kuznets curve, with
 significant policy implications.
Journal: Applied Economics 
Pages: 3113-3123 
Issue: 29 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011324 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011324 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3113-3123




Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Damette 
Author-X-Name-First: Olivier 
Author-X-Name-Last: Damette 
Author-Name: St鰨ane Goutte 
Author-X-Name-First: St鰨ane 
Author-X-Name-Last: Goutte 
Title: Tobin tax and trading volume tightening: a reassessment 
Abstract:
 This article extends the previous literature on the Tobin tax. We find
 that very roughly, a doubling in transaction costs would reduce trading
 volume by 25% to 40% in the Forex. Most importantly, this article is the
 first contribution to specify the trading volume of the Forex through
 different (low and high volatility) regimes. Our results show evidence of
 nonlinear patterns for trading volumes and transaction costs on the Forex.
 Thus, the Tobin tax would not have a monotonic impact on trading activity
 across market conditions. The change in elasticity between low and high
 volatility regimes would be slight but significantly different. We may
 suggest that the high-variance regime might be the fundamentalist regime
 and the low-variance regime might be the chartist regime. It is a first
 step towards understanding which categories of agents would react to the
 introduction of a tax. Our results seem consistent with Tobin's underlying
 thinking; since a tax would penalize chartists more than fundamentalists,
 it could reduce exchange rate volatility.
Journal: Applied Economics 
Pages: 3124-3141 
Issue: 29 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1011325 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011325 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3124-3141




Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Tanha 
Author-X-Name-First: Hassan 
Author-X-Name-Last: Tanha 
Author-Name: Michael Dempsey 
Author-X-Name-First: Michael 
Author-X-Name-Last: Dempsey 
Title: Do Aussie markets smile? Implied volatility functions and determinants 
Abstract:
 If options are correctly priced, the interpretation of volatility in the
 Black-Scholes model (as identifying the volatility of the underlying
 asset) is violated. The empirical relation between the model 'implied
 volatility' and the degree to which the option is in-the-money (moneyness)
 has been reported as resembling a U-shape (or 'smile') for options on
 currencies (and more of a 'smirk' for options on equities). In this
 article, using multivariate time-series analysis and employing an impulse
 response function, we investigate the structural relationships and
 dynamics of the volatility smile in relation to the option liquidity, key
 features of the underlying asset and market momentum. Our findings confirm
 evidence of a number of biases in the Black-Scholes model consistent with
 Chou <italic>et al</italic>. (2011) in regard to liquidity in both the
 underlying and the option itself, and with Pe񡠼italic>et al</italic>.
 (1999) as to the importance of the option time to maturity. As well as
 delineating such biases as they co-relate both with each other and with
 the underlying asset volatility and momentum, we find that the pronounced
 smile is related to the differential sensitivities of in-the-money and
 out-of-the-money options, which itself suggests an explanation for the
 characteristic smile shape.
Journal: Applied Economics 
Pages: 3143-3163 
Issue: 30 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1013606 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013606 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3143-3163




Template-Type: ReDIF-Article 1.0
Author-Name: Niels Hermes 
Author-X-Name-First: Niels 
Author-X-Name-Last: Hermes 
Author-Name: Ernest Kihanga 
Author-X-Name-First: Ernest 
Author-X-Name-Last: Kihanga 
Author-Name: Robert Lensink 
Author-X-Name-First: Robert 
Author-X-Name-Last: Lensink 
Author-Name: Clemens Lutz 
Author-X-Name-First: Clemens 
Author-X-Name-Last: Lutz 
Title: The determinants of trade credit use: the case of the Tanzanian rice market 
Abstract:
 Most small businesses in the developing economies suffer from a lack of
 access to formal external finance. One important alternative source of
 finance for these entrepreneurs is trade credit. Applying a unique
 data-set containing data on specific trade relations between rice
 wholesalers and rice retailers in Tanzania, we analyse the determinants of
 trade credit demand and supply in this market, using a simultaneous
 equation modelling approach. The analysis shows that while the demand for
 trade credit is primarily determined by the extent to which retailers need
 external funds, supply is mainly driven by wholesalers' incentives to
 attract and keep clients. Moreover, wholesalers' willingness to provide
 credit increases if they have better information about the possibility
 that the customer will fail to repay the credit.
Journal: Applied Economics 
Pages: 3164-3174 
Issue: 30 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1013607 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013607 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3164-3174




Template-Type: ReDIF-Article 1.0
Author-Name: Svante Mandell 
Author-X-Name-First: Svante 
Author-X-Name-Last: Mandell 
Author-Name: Mats Wilhelmsson 
Author-X-Name-First: Mats 
Author-X-Name-Last: Wilhelmsson 
Title: Financial infrastructure and house prices 
Abstract:
 We argue that banks operating in a local market possess better information
 about the local housing market than do nonlocal banks. Possessing this
 information may influence their willingness to grant loans to house buyers
 and the specifics of the loan terms, which in turn may affect house prices
 because credit facilitation makes the housing market more efficient. Using
 a panel data set covering a period from 1993 to 2007 and involving 274
 municipalities in Sweden, we establish a positive causal influence of
 local bank presence on local house prices. There are significant spatial
 and spillover effects, that is, banks in a municipality affect the housing
 markets in neighbouring municipalities, although to a lesser extent than
 in their own municipality. Similar results are obtained through a gravity
 model. The results are robust over time and municipality size.
Journal: Applied Economics 
Pages: 3175-3188 
Issue: 30 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1013608 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013608 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3175-3188




Template-Type: ReDIF-Article 1.0
Author-Name: Gil Cohen 
Author-X-Name-First: Gil 
Author-X-Name-Last: Cohen 
Author-Name: Elinor Cabiri 
Author-X-Name-First: Elinor 
Author-X-Name-Last: Cabiri 
Title: Can technical oscillators outperform the buy and hold strategy? 
Abstract:
 This study compares returns from the traditional buy and hold (B&H)
 strategy to well-known technical oscillators applied to diverse indices
 leading the global market (DJI, FTSE, NK225 and TA100) during the period
 2007-2012. Our aim was to establish whether technical tools can
 consistently achieve returns exceeding those of the B&H strategy across
 various financial markets. We found the relative strength index (RSI) to
 be the best oscillator, outperforming the DJIA, the FTSE100 and the NK225
 for five of the six years examined. The only index that did better than
 the RSI was TA100, which outperformed all the examined oscillators. In
 second place was the moving average convergence/divergence (MACD)
 oscillator, which outperformed the NK225 B&H strategy and came in second
 for TA100. The results show that during bear markets the RSI and MACD
 generally produce better gains than the indices, while the opposite occurs
 during bull markets.
Journal: Applied Economics 
Pages: 3189-3197 
Issue: 30 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1013609 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013609 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3189-3197




Template-Type: ReDIF-Article 1.0
Author-Name: May-Chiun Lo 
Author-X-Name-First: May-Chiun 
Author-X-Name-Last: Lo 
Author-Name: Thurasamy Ramayah 
Author-X-Name-First: Thurasamy 
Author-X-Name-Last: Ramayah 
Author-Name: Yin Chai Wang 
Author-X-Name-First: Yin Chai 
Author-X-Name-Last: Wang 
Title: Sustainable leadership: power of influence in MNCS in Malaysia 
Abstract:
 Building upon social exchange theory which explains how power is gained
 and lost in the process of influence between an agent and the target, this
 article hypothesized the impact of supervisors' and subordinates' power
 bases on the usage of influence tactics by the supervisors. Bases of power
 of supervisors, subordinates and influence tactics were conceptualized as
 seven-, seven- and nine-dimensional constructs, respectively. Three
 hundred and eighty-five pairs of Malaysian managers and executives working
 in large multinational companies participated. Currently, the
 manufacturing sector is considered as one of the cornerstone of Malaysia's
 economic diversification strategy. The findings suggested that supervisors
 apply various influence tactics on their subordinates.
Journal: Applied Economics 
Pages: 3198-3215 
Issue: 30 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1013610 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013610 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3198-3215




Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Moral-Benito 
Author-X-Name-First: Enrique 
Author-X-Name-Last: Moral-Benito 
Author-Name: Luis Serv鮠
Author-X-Name-First: Luis 
Author-X-Name-Last: Serv鮠
Title: Testing weak exogeneity in cointegrated panels 
Abstract:
 For reasons of empirical tractability, analysis of cointegrated economic
 time series is often developed in a partial setting, in which a subset of
 variables is explicitly modelled conditional on the rest. This approach
 yields valid inference only if the conditioning variables are weakly
 exogenous for the parameters of interest. This article proposes a new test
 of weak exogeneity in panel cointegration models. The test has a limiting
 Gumbel distribution that is obtained by first letting <inline-formula
 id="ILM0001"><inline-graphic xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_1013611_ilm0001.gif"/></inline-formula> and then
 letting <inline-formula id="ILM0002"><inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_1013611_ilm0002.gif"/></inline-formula>. We evaluate
 the accuracy of the asymptotic approximation in finite samples via
 simulation experiments. Finally, as an empirical illustration, we test
 weak exogeneity of disposable income and wealth in aggregate consumption.
Journal: Applied Economics 
Pages: 3216-3228 
Issue: 30 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1013611 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013611 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3216-3228




Template-Type: ReDIF-Article 1.0
Author-Name: Marie M. Stack 
Author-X-Name-First: Marie M. 
Author-X-Name-Last: Stack 
Author-Name: Geetha Ravishankar 
Author-X-Name-First: Geetha 
Author-X-Name-Last: Ravishankar 
Author-Name: Eric J. Pentecost 
Author-X-Name-First: Eric J. 
Author-X-Name-Last: Pentecost 
Title: FDI performance: a stochastic frontier analysis of location and variance determinants 
Abstract:
 The opening up process of the eastern European countries was marked by
 greater integration of FDI with their western neighbouring countries.
 Using the single-step ML approach to stochastic frontier analysis, the
 location and variance determinants of FDI are estimated using the
 knowledge capital (KK) model framework. The findings, based on a panel of
 bilateral FDI stocks from 10 western to 10 eastern European countries over
 the 1996-2007 period, suggest FDI is determined by both horizontal and
 vertical motives while the process of liberalization and infrastructural
 developments significantly reduces the variance of FDI. In using a
 stochastic frontier specification of the KK model, the efficiency of FDI
 performance is identified relative to maximum levels. The bilateral
 efficiency scores suggest a mixed performance, indicating scope to improve
 the efficiency of FDI.
Journal: Applied Economics 
Pages: 3229-3242 
Issue: 30 
Volume: 47 
Year: 2015 
Month: 6 
X-DOI: 10.1080/00036846.2015.1013612 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013612 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3229-3242




Template-Type: ReDIF-Article 1.0
Author-Name: A. Ahrens 
Author-X-Name-First: A. 
Author-X-Name-Last: Ahrens 
Author-Name: T. V. Kovandzic 
Author-X-Name-First: T. V. 
Author-X-Name-Last: Kovandzic 
Author-Name: L. M. Vieraitis 
Author-X-Name-First: L. M. 
Author-X-Name-Last: Vieraitis 
Title: Do execution moratoriums increase homicide? Re-examining evidence from Illinois 
Abstract:
 This article revisits the event study by Cloninger and Marchesini (2006),
 who find that the declaration of the Illinois' death penalty moratorium on
 31 January 2000 had a homicide-promoting effect and resulted in 150
 additional homicides over the period 2000-2003. We reassess the author's
 identification strategy, which they refer to as 'portfolio approach' and
 which draws upon event studies in finance research. We argue that their
 methodology is not applicable in crime studies. Instead, we apply
 univariate time-series methods to test for a structural break at a known
 and unknown break date. We allow for unknown break points as the
 structural break might have occurred slightly earlier (criminals might
 have anticipated the moratorium) or later (due to persistence in criminal
 behaviour). In addition, we implement the synthetic control estimator
 which approximates the counterfactual homicide series by a weighted
 average of homicide outcomes in other US states. Based on various testing
 methods and two distinct data sets, we conclude that there is no empirical
 evidence to support the hypothesis that the Illinois' execution moratorium
 significantly increased homicides.
Journal: Applied Economics 
Pages: 3243-3257 
Issue: 31 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1013613 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013613 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3243-3257




Template-Type: ReDIF-Article 1.0
Author-Name: Wahyu Widodo 
Author-X-Name-First: Wahyu 
Author-X-Name-Last: Widodo 
Author-Name: Ruhul Salim 
Author-X-Name-First: Ruhul 
Author-X-Name-Last: Salim 
Author-Name: Harry Bloch 
Author-X-Name-First: Harry 
Author-X-Name-Last: Bloch 
Title: The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia 
Abstract:
 This article examines the effects of agglomeration economies and
 industrial structure upon firm-level technical efficiency in the
 Indonesian manufacturing industry over the period 2004-2009. A stochastic
 production frontier and three channels of agglomeration economies
 consisting of specialization, diversity and competition are used. The
 empirical results show that the effects of specialization and diversity
 upon firm-level technical efficiency are positive and negative,
 respectively, indicating that specialization is more favourable than
 diversity for stimulating firms' technical efficiency. Competition has a
 positive sign, showing that region with high levels of competition tend to
 be more conducive in accelerating firm-level technical efficiency. In
 terms of firm location, both dummy for urban region and industrial complex
 turn out to be positive, indicating that firms located in both areas are
 experienced higher technical efficiency. Both firm size and age also have
 positive effect upon technical efficiency.
Journal: Applied Economics 
Pages: 3258-3275 
Issue: 31 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1013614 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013614 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3258-3275




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Apergis 
Title: Long-run estimates of money demand: new evidence from East Asian countries and the presence of structural breaks 
Abstract:
 Conventionally, the money demand function is estimated using a linear
 regression of the logarithm of money demand on a number of variables. In
 this article, we aim to estimate the long-run properties of money demand
 specification for a number of East Asian economies and within a panel
 framework with the presence of structural breaks. Various country-specific
 coefficients are allowed to capture inter-country heterogeneities.
 Consistent with theoretical postulates, it is found that (a) the demand
 for money in the long-run positively responds to real income and inversely
 to the interest rate spread, inflation, the real effective exchange rate
 and the US real interest rate; (b) the long-run income elasticity is
 greater than unity; and (c) both the currency substitution and capital
 mobility hypotheses hold. The empirical findings in this article can
 provide useful policy guidelines to the East Asian countries' central
 banks in their quest for price stability. If one of the primary objectives
 of these countries is to minimize price instability, they should avoid
 creating unnecessary disequilibrium in the money market, while the
 employment of cointegration with the presence of structural breaks clearly
 recommends to central banks to use the supply of money to attain price and
 macroeconomic stability.
Journal: Applied Economics 
Pages: 3276-3291 
Issue: 31 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1013615 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013615 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3276-3291




Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Correia de Souza 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Correia de Souza 
Author-Name: Jorge Chami Batista 
Author-X-Name-First: Jorge Chami 
Author-X-Name-Last: Batista 
Title: Replacement cycles, income distribution and dynamic price discrimination 
Abstract:
 This article analyses how income distribution, Intellectual Property
 Rights and other regulatory policies such as minimum quality standards
 determine pricing strategies in a dynamic context where a monopolist
 periodically introduces new generations or upgrades of a durable good.
 Discrimination through quality and screening in this article takes place
 in a context where consumers buy several versions of the durable good
 during their lifetime, instead of a single version as in Inderst's (2008)
 or Koh's (2006). It also differs from Glass (2001) in that an equilibrium
 may emerge in which different consumer types replace their durable
 generations with different frequencies. Our modelling is motivated by
 stylized facts from the last Brazilian POF (household budget survey).
Journal: Applied Economics 
Pages: 3292-3310 
Issue: 31 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1013616 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013616 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3292-3310




Template-Type: ReDIF-Article 1.0
Author-Name: J. Buckell 
Author-X-Name-First: J. 
Author-X-Name-Last: Buckell 
Author-Name: A. Smith 
Author-X-Name-First: A. 
Author-X-Name-Last: Smith 
Author-Name: R. Longo 
Author-X-Name-First: R. 
Author-X-Name-Last: Longo 
Author-Name: D. Holland 
Author-X-Name-First: D. 
Author-X-Name-Last: Holland 
Title: Efficiency, heterogeneity and cost function analysis: empirical evidence from pathology services in the National Health Service in England 
Abstract:
 Pathology services are increasingly recognized as key to effective
 healthcare delivery - underpinning diagnosis, long-term disease management
 and research. To the extent that pathology services affect a patient's
 treatment pathway, significant healthcare costs are influenced directly by
 the performance of these services. Given pressures on the UK Department of
 Health to make efficiency savings and that little is known about the
 efficiency of pathology laboratories, this area offers unlocked potential
 for efficiency gains. We adopt a time varying inefficiency model, with
 laboratory-specific time paths for inefficiency, to identify potential
 savings in pathology services based on a panel of 57 English laboratories
 over a 5&nbsp;year period. We apply a range of approaches to account for
 observable and unobservable heterogeneity between laboratories. We find
 potential efficiency savings of 13% in pathology services in this sample,
 which implies the potential for an annual saving of &pound;390m in
 pathology across the NHS. Our study also provides valuable insights into
 the impact of a range of factors influencing laboratory costs.
Journal: Applied Economics 
Pages: 3311-3331 
Issue: 31 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1013617 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013617 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3311-3331




Template-Type: ReDIF-Article 1.0
Author-Name: Atsushi Sekine 
Author-X-Name-First: Atsushi 
Author-X-Name-Last: Sekine 
Title: Effects of mineral-commodity price shocks on monetary policy in developed countries 
Abstract:
 This article investigates effects of changes in mineral commodity prices
 on monetary policy. Using macroeconomic data from three mineral-producing
 countries (Australia, Canada and New Zealand) and two non-mineral-resource
 countries (USA and UK), I estimate the impulse response functions of the
 policy interest rates and the core consumer price index (CPI) inflation
 rates to mineral-commodity price shocks. I find that the central banks in
 both groups of the examined countries significantly respond to
 mineral-commodity price shocks. In responses to an unexpected 10% increase
 in mineral commodity prices, the central banks are estimated to increase
 their policy interest rates by approximately 0.8 percentage points.
 Moreover, the central banks seem to take anticipatory policy reactions to
 control core CPI variations triggered by these shocks. Thus, mineral
 commodity prices would act as important determinants of the monetary
 policies in both groups of the examined countries. These findings would be
 useful for analysing Taylor rules in their countries. However, effects of
 the increase in their policy interest rates on core CPI inflation cannot
 be identified for the examined countries.
Journal: Applied Economics 
Pages: 3332-3346 
Issue: 31 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1013618 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013618 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3332-3346




Template-Type: ReDIF-Article 1.0
Author-Name: Mahmod Qadan 
Author-X-Name-First: Mahmod 
Author-X-Name-Last: Qadan 
Author-Name: Joseph Yagil 
Author-X-Name-First: Joseph 
Author-X-Name-Last: Yagil 
Title: International co-movements of real and financial economic variables 
Abstract:
 This study presents a first attempt at investigating whether the
 international co-movements of real economic activity conform to the same
 international co-movements of financial activity. This study tests the
 international co-movements of real economic activity, on the one hand, and
 financial variables such as stock returns, interest rates, inflation rates
 and risk premiums, on the other hand. We employ a dynamic correlation
 model on data from OECD countries for the period 1980-2010. Our findings
 demonstrate that international stock markets co-react in accordance with
 the underlying international economic forces. We also document three other
 results. First, the correlation among countries with respect to real
 economic activity is statistically positive, but the level of this
 correlation is lower than that of financial variables. Second, there is a
 significant increase over time in the international correlation level with
 respect to the financial variables. Finally, the creation of the Euro
 Monetary Union and the adoption of an inflation targeting policy in many
 countries have increased the international correlation of all of the
 financial variables tested. The article concludes with two implications
 from these findings: (1) predictions in the context of international
 portfolio diversification, and (2) policy making at the fiscal and
 monetary levels.
Journal: Applied Economics 
Pages: 3347-3366 
Issue: 31 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1013619 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013619 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3347-3366




Template-Type: ReDIF-Article 1.0
Author-Name: George Mihaylov 
Author-X-Name-First: George 
Author-X-Name-Last: Mihaylov 
Author-Name: Alfred Yawson 
Author-X-Name-First: Alfred 
Author-X-Name-Last: Yawson 
Author-Name: Ralf Zurbruegg 
Author-X-Name-First: Ralf 
Author-X-Name-Last: Zurbruegg 
Title: The decision to seek advice in the self-directed retirement fund industry 
Abstract:
 This article examines the influence of investor knowledge and the
 cognitive bias that arises from overconfidence on the advice-seeking
 behaviour of investors managing their own retirement funds. Specifically,
 we trace whether overestimating one's own technical and financial
 abilities can hinder the willingness to seek advice, particularly when it
 would be in the investors' best interest to do so. We identify a subset of
 investors who are not knowledgeable and yet do not seek advice. These
 investors exhibit overconfidence in their ability to manage a fund,
 despite holding under-diversified and less sophisticated portfolios
 relative to their peers. Given the global rise in investors choosing to
 manage their own retirement funds and the importance of seeking advice in
 this context, there are direct policy implications from these results.
 They suggest a need to identify and target investors who display
 overconfidence since they are most likely to be managing underperforming
 retirement investments in the longer term.
Journal: Applied Economics 
Pages: 3367-3381 
Issue: 32 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1013620 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013620 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3367-3381




Template-Type: ReDIF-Article 1.0
Author-Name: Vassilios G. Papavassiliou 
Author-X-Name-First: Vassilios G. 
Author-X-Name-Last: Papavassiliou 
Title: Price discovery and the effects of fragmentation on market quality: evidence from Cypriot cross-listed stocks 
Abstract:
 Using a novel high-frequency data set, we examine the contribution of
 Greek trading to the price discovery process of a pair of Cypriot
 blue-chip, cross-listed stocks during overlapping trading hours.
 Additionally, we investigate the effects of market fragmentation on the
 home market's quality, as measured by microstructure-based liquidity
 measures. Contrary to earlier studies from other markets, our findings
 show that foreign stock exchanges can act as the leading contributors to
 price discovery and can concentrate the majority of trading activity and
 produce the lowest transaction costs. Our results also show that market
 fragmentation can lead to negative effects on market liquidity.
Journal: Applied Economics 
Pages: 3382-3394 
Issue: 32 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1016205 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016205 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3382-3394




Template-Type: ReDIF-Article 1.0
Author-Name: Dooyeon Cho 
Author-X-Name-First: Dooyeon 
Author-X-Name-Last: Cho 
Author-Name: Dong-Eun Rhee 
Author-X-Name-First: Dong-Eun 
Author-X-Name-Last: Rhee 
Title: An assessment of inflation targeting in a quantitative monetary business cycle framework: evidence from four early adopters 
Abstract:
 This article examines the effectiveness of inflation targeting (IT) to
 stabilize the real economy in advanced countries where IT was adopted in
 the early 1990s. To quantitatively assess IT, this article employs the
 monetary business cycle accounting methodology recently developed by
 &Scaron;ustek (2011), which is an extended version of Chari, Kehoe, and
 McGrattan (2007), to monetary models. Our main finding is that the
 monetary policy wedge that captures economic fluctuations caused by
 monetary policy has significantly declined since the implementation of IT
 in the early 1990s. The results suggest that advanced economies, such as
 Australia, Canada, Sweden and the United Kingdom, that adopted IT in the
 early 1990s have been successful in stabilizing business cycle
 fluctuations.
Journal: Applied Economics 
Pages: 3395-3413 
Issue: 32 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1016206 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016206 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3395-3413




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Firpo 
Author-X-Name-First: Sergio 
Author-X-Name-Last: Firpo 
Author-Name: Hugo Jales 
Author-X-Name-First: Hugo 
Author-X-Name-Last: Jales 
Author-Name: Cristine Pinto 
Author-X-Name-First: Cristine 
Author-X-Name-Last: Pinto 
Title: Measuring peer effects in the Brazilian school system 
Abstract:
 Using the identification strategy proposed by Graham and Hahn (2005), we
 estimate the magnitude of classmate effects on math scores using Brazilian
 data from 2005. In addition, we provide a detailed discussion about the
 identification of endogenous peer effects in the linear in means models.
 Our results show that both peer characteristics (exogenous peer effects) -
 like race, socioeconomic status and gender - and peer actions (endogenous
 peer effects) are important determinants of students' outcomes in the
 fifth grade of elementary school. Our estimates of endogenous peer effects
 are about 0.008 of 1 SD of math test scores, which can be interpreted as
 evidence of a so-called 'conformist' individual behaviour, under which
 students face large costs to exert effort levels that are distant from
 what is believed to be the norm in the classroom. Those estimates of
 endogenous peer effects imply a social multiplier of about 1.67.
Journal: Applied Economics 
Pages: 3414-3438 
Issue: 32 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1016207 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016207 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3414-3438




Template-Type: ReDIF-Article 1.0
Author-Name: Michiel Bijlsma 
Author-X-Name-First: Michiel 
Author-X-Name-Last: Bijlsma 
Author-Name: Karen Van Der Wiel 
Author-X-Name-First: Karen 
Author-X-Name-Last: Van Der Wiel 
Title: Consumer perception of deposit insurance: little awareness, limited effectiveness? 
Abstract:
 The empirical findings on bank runs and market discipline are at odds with
 the theoretical predictions from the literature, at least in emerging
 markets. Using unique survey data from the Netherlands, we explore two
 possible explanations: deposit holders may have limited knowledge of
 deposit insurance (DI)-schemes or they may not fully trust these schemes
 to be executed faithfully. We find that knowledge on the eligibility for
 DI is limited, particularly when it concerns minor banks. Nevertheless,
 households with more deposits have better knowledge of the DI-scheme and
 show higher levels of trust. In addition, deposit holders generally expect
 an associated payback time that well exceeds the time it has taken to pay
 back depositors in the past. Moreover, consumers believe repayment is more
 likely and faster for large, systemic banks. These results confirm that
 both households' awareness of the coverage and trust in the operations of
 the DI-scheme are suboptimal.
Journal: Applied Economics 
Pages: 3439-3461 
Issue: 32 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1016208 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016208 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3439-3461




Template-Type: ReDIF-Article 1.0
Author-Name: Shin-Yi Chou 
Author-X-Name-First: Shin-Yi 
Author-X-Name-Last: Chou 
Author-Name: Echu Liu 
Author-X-Name-First: Echu 
Author-X-Name-Last: Liu 
Author-Name: Min-Jen Lin 
Author-X-Name-First: Min-Jen 
Author-X-Name-Last: Lin 
Author-Name: Jin-Tan Liu 
Author-X-Name-First: Jin-Tan 
Author-X-Name-Last: Liu 
Title: Better peers, better scores? A study of twin junior high school graduates in Taiwan 
Abstract:
 Using data of twin students graduating from junior high schools between
 2002 and 2004 in Taiwan, we estimate the effects of peers on high school
 joint entrance examination performance. To alleviate the potential
 endogeneity of peer educational achievement, linear models with twin fixed
 effect and instrumental variables are estimated. Quantile, quantile with
 twin fixed effect and quantile with instrument variables regressions are
 also implemented to determine whether estimated peer effects differ at
 various locations of the testing scores' conditional distributions.
 Positive and statistically significant peer effects are found to exist at
 the mean and at different quantile levels.
Journal: Applied Economics 
Pages: 3462-3481 
Issue: 32 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1016209 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016209 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3462-3481




Template-Type: ReDIF-Article 1.0
Author-Name: Kunlapath Sukcharoen 
Author-X-Name-First: Kunlapath 
Author-X-Name-Last: Sukcharoen 
Author-Name: Hankyeung Choi 
Author-X-Name-First: Hankyeung 
Author-X-Name-Last: Choi 
Author-Name: David J. Leatham 
Author-X-Name-First: David J. 
Author-X-Name-Last: Leatham 
Title: Optimal gasoline hedging strategies using futures contracts and exchange-traded funds 
Abstract:
 This article employs a variety of econometric models (including OLS,
 VEC/VAR, DCC GARCH and a class of copula-based GARCH models) to estimate
 optimal hedge ratios for gasoline spot prices using gasoline
 exchange-traded funds (ETFs) and gasoline futures contracts. We then
 compare their performance using four different measures from the
 perspective of both their hedging objectives and trading position using
 four different measures: variance reduction measure, utility-based measure
 and two tail-based measures (value at risk and expected shortfall). The
 impact of the 2008 financial market crisis on hedging performance is also
 investigated. Our findings indicate that, in terms of variance reduction,
 the static models (OLS and VEC/VAR) are found to be the best hedging
 strategies. However, more sophisticated time-varying hedging strategies
 could outperform the static hedging models when the other measures are
 used. In addition, ETF hedging is a more effective hedging strategy than
 futures hedging during the high-volatility (crisis) period, but this is
 not always the case during the normal time (post-crisis) period.
Journal: Applied Economics 
Pages: 3482-3498 
Issue: 32 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1016210 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016210 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3482-3498




Template-Type: ReDIF-Article 1.0
Author-Name: Tristan Kohl 
Author-X-Name-First: Tristan 
Author-X-Name-Last: Kohl 
Author-Name: Sofia Trojanowska 
Author-X-Name-First: Sofia 
Author-X-Name-Last: Trojanowska 
Title: Heterogeneous trade agreements, WTO membership and international trade: an analysis using matching econometrics 
Abstract:
 This article explores the heterogeneous effects of trade agreements (TAs)
 and World Trade Organization (WTO) membership on the volume of
 international trade. We extend Baier and Bergstrand's (2009a) application
 of matching econometrics by distinguishing between different types of TAs
 and WTO participation and account for the endogenous nature of trade
 policy. For a panel data set covering 1960-2005 and 187 countries, we find
 that the treatment effect on international trade systematically varies
 with the type of TA and WTO membership.
Journal: Applied Economics 
Pages: 3499-3509 
Issue: 33 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1016211 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016211 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3499-3509




Template-Type: ReDIF-Article 1.0
Author-Name: Takanori Tanaka 
Author-X-Name-First: Takanori 
Author-X-Name-Last: Tanaka 
Title: Foreign investors and corporate social responsibility: evidence from the career advancement of women in Japan 
Abstract:
 I examine whether foreign investors invest in firms that encourage the
 career advancement of women by using data from a sample of Japanese firms
 during the period 2008-2011. First, I find that corporate governance
 reform and work-life balance practices facilitate the promotion of women
 to higher positions in firms. Furthermore, I find that foreign investors
 hold more shares of firms that encourage the career advancement of women.
 Overall, these results indicate that the career advancement of women, as a
 part of corporate social responsible activities, benefits foreign
 investors.
Journal: Applied Economics 
Pages: 3510-3524 
Issue: 33 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1016212 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016212 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3510-3524




Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani 
Author-X-Name-First: Abbas 
Author-X-Name-Last: Valadkhani 
Title: Asymmetric size-dependent effects of the output gap on inflation: US evidence from the last half a century 
Abstract:
 This article examines asymmetric size- and sign-dependent effects of the
 output gap on the US quarterly inflation rate using data from the last
 half a century (1959Q2-2013Q1). Consistent with previous studies, it is
 found that the consumer price index is cointegrated with the unit labour
 cost and the price of oil. A short-run dynamic model is then estimated in
 which variations in the output gap are divided into three groups:
 large-positive; large-negative; and small-medium positive/negative. The
 results provide convincing evidence that only sufficiently large (positive
 or negative) variations of the output gap can significantly influence
 inflation. Put otherwise, relatively small to medium changes in the output
 gap exert no significant impact on inflation and if not separated, they
 can somewhat obscure the significant effects associated with large
 variations of the output gap. This study can lead to greater consensus on
 the inflation-output gap nexus. The findings remain robust despite the use
 of different measures of output gap and they are consistent with the
 modern doctrine but with a new caveat: inflation responds to both positive
 and negative changes in the output gap as long as such variations are of
 sizable magnitudes.
Journal: Applied Economics 
Pages: 3525-3539 
Issue: 33 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1016213 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016213 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3525-3539




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Hutter 
Author-X-Name-First: Christian 
Author-X-Name-Last: Hutter 
Author-Name: Enzo Weber 
Author-X-Name-First: Enzo 
Author-X-Name-Last: Weber 
Title: Constructing a new leading indicator for unemployment from a survey among German employment agencies 
Abstract:
 The article investigates the predictive power of a new survey implemented
 by the Federal Employment Agency (FEA) for forecasting German unemployment
 in the short run. Every month, the CEOs of the FEA's regional agencies are
 asked about their expectations of future labour market developments. We
 generate an aggregate unemployment leading indicator that exploits serial
 correlation in response behaviour through identifying and adjusting
 temporarily unreliable predictions. We use out-of-sample tests suitable in
 nested model environments to compare forecasting performance of models
 including the new indicator to that of purely autoregressive benchmarks.
 For all investigated forecast horizons (1, 2, 3 and 6&nbsp;months), test
 results show that models enhanced by the new leading indicator
 significantly outperform their benchmark counterparts. To compare our
 indicator to potential competitors, we employ the model confidence set.
 Results reveal that models including the new indicator perform very well
 at the 10% level.
Journal: Applied Economics 
Pages: 3540-3558 
Issue: 33 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1018672 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1018672 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3540-3558




Template-Type: ReDIF-Article 1.0
Author-Name: Mu-Sheng Chang 
Author-X-Name-First: Mu-Sheng 
Author-X-Name-Last: Chang 
Author-Name: Elyas Elyasiani 
Author-X-Name-First: Elyas 
Author-X-Name-Last: Elyasiani 
Title: Do insurance activities enhance the performance of financial services holding companies? 
Abstract:
 Stiroh and Rumble (2006) and Yeager <italic>et al</italic>. (2007) have
 argued that extension of banks into nonbanking activities produces no
 diversification benefits for financial services holding companies (FSHCs)
 eligible to consolidate banking and insurance products. We investigate the
 effect of aggregate nonbank activities, as well as two main areas of
 insurance business, namely agency and underwriting enterprise, on the
 risk-adjusted performance of FSHCs. Our sample includes a quarterly panel
 data of FSHCs over the period 2003-2011. We find that the effect of FSHCs'
 entry into agency insurance activities on their risk-adjusted returns is
 dependent on their size; it is positive for FSHCs in the top quartile of
 our sample (assets greater than $4.495&nbsp;billions), but negative for
 smaller and mid-size FSHCs. The effect of underwriting insurance
 activities on risk-adjusted returns is generally negative or statistically
 insignificant, except for some of the largest-size firms.
Journal: Applied Economics 
Pages: 3559-3576 
Issue: 33 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1019032 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019032 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3559-3576




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitris Balios 
Author-X-Name-First: Dimitris 
Author-X-Name-Last: Balios 
Author-Name: Nikolaos Eriotis 
Author-X-Name-First: Nikolaos 
Author-X-Name-Last: Eriotis 
Author-Name: Alexandra Fragoudaki 
Author-X-Name-First: Alexandra 
Author-X-Name-Last: Fragoudaki 
Author-Name: Dimitrios Giokas 
Author-X-Name-First: Dimitrios 
Author-X-Name-Last: Giokas 
Title: Economic efficiency of Greek retail SMEs in a period of high fluctuations in economic activity: a DEA approach 
Abstract:
 This study aims to analyse the economic efficiency of Greek small and
 medium retail enterprises before and after the crisis that started in
 2008. Based on the Accounting Equation, we use Data Envelopment Analysis
 (DEA) to estimate variable returns of scale efficiency scores and to
 conclude on specific characteristics that efficient companies have, for
 example, on capital structure. Our results from the DEA application show a
 high degree of inefficiency. We found that SMEs on the islands are more
 efficient than those on the mainland and that SMEs in the cities are the
 least efficient. Size seems to be important, more so on the islands and on
 the mainland than in the cities. We conclude that companies should act
 more conservatively in terms of operating cost when the first signs of a
 recession appear. In addition, during a recession period, companies that
 have evidences that their operations will continue positively should
 strengthen their operations by raising more own capital. Finally, our
 study clarifies four issues: the efficiency of retail companies in a
 period of growth and a period of recession, focusing on SMEs that operate
 in different regions, connecting Accounting Equation and DEA and adding
 acid ratio as an output in our model.
Journal: Applied Economics 
Pages: 3577-3593 
Issue: 33 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1019033 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019033 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3577-3593




Template-Type: ReDIF-Article 1.0
Author-Name: Fergal McCann 
Author-X-Name-First: Fergal 
Author-X-Name-Last: McCann 
Author-Name: Tara McIndoe-Calder 
Author-X-Name-First: Tara 
Author-X-Name-Last: McIndoe-Calder 
Title: Firm size, credit scoring accuracy and banks' production of soft information 
Abstract:
 Research on SME bank financing generally assumes that smaller firms are
 more opaque from a lender's perspective. We propose that the
 discriminatory power of credit scoring models can be thought of as a proxy
 for firm opaqueness, given that when these models perform poorly, lenders
 must invest in the production of 'soft information' to supplement the
 financial data used in these models. Measuring the discriminatory power of
 probit default models across quintiles of the Irish SME size distribution,
 we show that our proxy for firm opaqueness increases monotonically as
 firms get smaller. This finding supports an assumption that is the
 starting point to a wide strand of literature on SME bank financing. Our
 findings can also be interpreted as providing an insight to the literature
 on the determinants of banks' choice of lending technology. While smaller
 banks may, as found in a substantial previous literature, produce larger
 amounts of 'soft information' due to their organizational advantages, they
 may also do so out of <italic>necessity</italic>: hard-information-based
 default modelling is less effective among smaller firms, thereby forcing
 banks that lend to these borrowers to invest more in relationship banking
 technologies to retain competitiveness.
Journal: Applied Economics 
Pages: 3594-3611 
Issue: 33 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1019034 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019034 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3594-3611




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi 
Author-X-Name-First: Fredj 
Author-X-Name-Last: Jawadi 
Title: Recent topics in Applied Financial Economics 
Abstract:
 This note discusses topics concerning recent evolutions in financial
 economics research. It focuses in particular on the progress of
 quantitative finance and applied economics in the context of the global
 financial crisis. To this end, I examine various important topics in
 Economics and Finance and discuss several empirical studies on the
 statistical properties of macroeconomic and financial data through the
 application of different econometric methodologies. I analyse their
 empirical findings and discuss their conclusions.
Journal: Applied Economics 
Pages: 3613-3616 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021464 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021464 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3613-3616




Template-Type: ReDIF-Article 1.0
Author-Name: Calebe de Roure 
Author-X-Name-First: Calebe 
Author-X-Name-Last: de Roure 
Author-Name: Steven Furnagiev 
Author-X-Name-First: Steven 
Author-X-Name-Last: Furnagiev 
Author-Name: Stefan Reitz 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Reitz 
Title: The microstructure of exchange rate management: FX intervention and capital controls in Brazil 
Abstract:
 This article uses a microstructure approach to analyse the effectiveness
 of capital controls introduced in Brazil to counter an appreciation of the
 Real. Based on a rich data set from the Brazilian foreign exchange market,
 we estimate a reduced-form VAR to characterize the interaction of the
 central bank, financial and commercial customers in times of regulatory
 policy measures. We find that capital controls change market participants'
 behaviour, and that central bank interventions elicit a significant
 response in financial order flow. Referring to the source of order flow,
 we find no direct price impact by financial flows and thus no evidence
 that the appreciation of the Real is driven by financial customers'
 activity. Instead, commercial customers seem to be a primary driver of the
 Real within our model.
Journal: Applied Economics 
Pages: 3617-3632 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021455 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021455 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3617-3632




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi 
Author-X-Name-First: Fredj 
Author-X-Name-Last: Jawadi 
Author-Name: Wa&euml;l Louhichi 
Author-X-Name-First: Wa&euml;l 
Author-X-Name-Last: Louhichi 
Author-Name: Abdoulkarim Idi Cheffou 
Author-X-Name-First: Abdoulkarim 
Author-X-Name-Last: Idi Cheffou 
Title: Intraday bidirectional volatility spillover across international stock markets: does the global financial crisis matter? 
Abstract:
 This article studies volatility spillover between the US and the three
 largest European stock markets (Frankfurt, London and Paris) around the
 time of the recent Subprime crisis. In order to investigate the impact of
 the latter, we break our sample down into two sub-periods: a pre-crisis
 period and a post-crisis period, using a structural break test that has
 the advantage of endogenously testing for further breaks in the data.
 Unlike previous studies that have frequently investigated this issue using
 low frequency data, our article makes use of intraday data. Accordingly,
 using Threshold generalized autoregressive conditional heteroscedasticity
 (GARCH) model estimations, we find weak evidence of volatility
 transmission between the two regions before the Subprime crisis. However,
 during the post-crisis period, we record returns and volatility spillover
 from US to European markets and vice versa at different times of the
 trading day, indicating that the two regions became more dependent during
 the recent Subprime crisis, a finding that supports the contagion
 hypothesis between the US and European stock markets.
Journal: Applied Economics 
Pages: 3633-3650 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021459 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021459 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3633-3650




Template-Type: ReDIF-Article 1.0
Author-Name: Yuri Biondi 
Author-X-Name-First: Yuri 
Author-X-Name-Last: Biondi 
Title: Accounting and the formation of share market prices over time: a mathematical institutional economic analysis through simulation and experiment 
Abstract:
 This article develops a heterogeneous agents-based model to examine the
 emergent dynamic properties of share market price formation over time,
 with a view on financial market stability under alternative accounting
 regimes. In the model, individual heterogeneous investors interact with
 each other and with institutional devices which are an accounting system
 (related to the business firm) and a price system (related to the Share
 Exchange). These interactions provide mechanisms for transmission through
 which firm-specific (accounting signal) and market-driven (aggregate
 price) factors can act. A baseline simulation analysis assesses the
 financial market stability under three alternative accounting designs,
 namely two kinds of historical cost accounting regime and one kind of
 fair-value (mark-to-market) accounting regime. The former prove to better
 stabilize the financial system in terms of market volatility and
 exuberance in perfectly balanced conditions between speculative and
 fundamentalist beliefs and intentions. An evolutionary analysis is then
 developed by varying the relative degree of speculative attitudes between
 the two sides of the market. Historical cost accounting regimes further
 prove to make the financial system more resilient to speculative waves
 occurring at inter-individual level. Baseline findings are further
 corroborated through experimental analysis in twelve artificial financial
 systems. This mathematical institutional economic analysis has general
 implications for both designing accounting systems aimed at enhancing
 financial market stability and preventing procyclicality, and the study of
 accounting information process in the formation of share market prices
 over time.
Journal: Applied Economics 
Pages: 3651-3672 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021461 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021461 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3651-3672




Template-Type: ReDIF-Article 1.0
Author-Name: Georges Prat 
Author-X-Name-First: Georges 
Author-X-Name-Last: Prat 
Author-Name: Remzi Uctum 
Author-X-Name-First: Remzi 
Author-X-Name-Last: Uctum 
Title: Expectation formation in the foreign exchange market: a time-varying heterogeneity approach using survey data 
Abstract:
 Using Consensus Economics survey data on JPY/USD and GBP/USD exchange rate
 expectations for the 3- and 12-month horizons over the period November
 1989-December 2012, we first show that expectations fail the conventional
 tests of unbiasedness and do not exhibit a learning process towards
 rationality. Our approach is consistent with the economically rational
 expectations theory (Feige and Pearce, 1976), which states that
 information costs and agents' aversion to misestimating future exchange
 rates determine the optimal amounts of information on which they base
 their expectations. The time variability of the cost/aversion ratios
 justifies at the aggregate level a representation of expectations as a
 linear combination of the traditional extrapolative, adaptive and
 regressive processes augmented by a forward market component, whose
 parameters are allowed to change over time. This mixed expectation model
 with unstable heterogeneity is validated by our Kalman filter estimation
 results for the two currencies and the two horizons considered. Although
 the relative importance of the 'fundamentalists' ('chartists') is found to
 increase (decrease) with the time-horizon, chartist behaviour appears to
 dominate fundamentalist behaviour for both horizons. Central bank
 intervention is then effective in stabilizing the foreign exchange markets
 if it encourages fundamentalist activity.
Journal: Applied Economics 
Pages: 3673-3695 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021460 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021460 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3673-3695




Template-Type: ReDIF-Article 1.0
Author-Name: Micha&#x142; Brzoza-Brzezina 
Author-X-Name-First: Micha&#x142; 
Author-X-Name-Last: Brzoza-Brzezina 
Author-Name: Jacek Kot&#x142;owski 
Author-X-Name-First: Jacek 
Author-X-Name-Last: Kot&#x142;owski 
Author-Name: Kamil Wierus 
Author-X-Name-First: Kamil 
Author-X-Name-Last: Wierus 
Title: Can interest rate spreads stabilize the euro area? 
Abstract:
 Since the onset of the financial crisis significant interest rate spreads
 have arisen between euro area countries, both for public and private debt.
 We check whether these spreads could be made to work towards the goal of
 providing more stability to the euro area. In particular, we focus on
 reducing the imbalances that arose between the core and peripheral members
 of the euro area in the first decade of its existence. The idea is that
 stable positive spreads in peripheral countries could have decreased
 domestic demand, preventing the boom-bust cycles that plagued these
 economies. They could also prevent such developments in the future. We
 construct a panel model for euro area countries and estimate the
 relationship between real interest rates and the current account balance.
 Next, we use the estimated parameters to perform simulations. We find that
 spreads on real interest rates of 0.6-5.5 percentage points would have
 been necessary to stabilize external positions of the four peripheral euro
 area member countries.
Journal: Applied Economics 
Pages: 3696-3709 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021547 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021547 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3696-3709




Template-Type: ReDIF-Article 1.0
Author-Name: Junko Koeda 
Author-X-Name-First: Junko 
Author-X-Name-Last: Koeda 
Author-Name: Ryo Kato 
Author-X-Name-First: Ryo 
Author-X-Name-Last: Kato 
Title: The role of uncertainty in the term structure of interest rates: A GARCH-ATSM approach 
Abstract:
 This article examines the roles of uncertainties regarding various
 macro-variables in determining risk premiums of bond yields. We develop a
 multivariate GARCH-VAR to quantify uncertainties regarding inflation, real
 activities and monetary policy as time-varying conditional variances. We
 jointly estimate the multivariate GARCH and no-arbitrage bond pricing
 equations using a maximum likelihood method. The results indicate that the
 inflation uncertainty is the largest contributor to the dynamics of
 long-term yields since the 1980s, while the monetary policy uncertainty
 also plays noticeable roles.
Journal: Applied Economics 
Pages: 3710-3722 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021454 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3710-3722




Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Charemza 
Author-X-Name-First: Wojciech 
Author-X-Name-Last: Charemza 
Author-Name: Svetlana Makarova 
Author-X-Name-First: Svetlana 
Author-X-Name-Last: Makarova 
Author-Name: Imran Shah 
Author-X-Name-First: Imran 
Author-X-Name-Last: Shah 
Title: Making the most of high inflation 
Abstract:
 This article examines the relationship between the real effects of
 inflation and its level in countries with frequent episodes of high
 inflation. The real effects are computed as asymmetric impulse responses
 of output to inflation separately in the regimes with different signs of
 the differences between the expected inflation and the predicted
 output-neutral inflation. It is found that, with the increase in
 inflation, such effects increase in the regime with the positive sign,
 relatively to the effects in the regime with the negative sign. It is also
 shown that this finding is valid for most countries with high inflation
 episodes, where inflation is greater than 4.8% for at least 25% of
 quarterly observations. This leads to a simple policy prescription that,
 in economies with frequent high inflation episodes, anti-inflationary
 monetary decisions are least damaging for output if undertaken in the
 periods when the difference between the expected and output-neutral
 inflation is negative.
Journal: Applied Economics 
Pages: 3723-3739 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021462 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021462 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3723-3739




Template-Type: ReDIF-Article 1.0
Author-Name: Luca Agnello 
Author-X-Name-First: Luca 
Author-X-Name-Last: Agnello 
Author-Name: Vitor Castro 
Author-X-Name-First: Vitor 
Author-X-Name-Last: Castro 
Author-Name: Jo&atilde;o Tovar Jalles 
Author-X-Name-First: Jo&atilde;o Tovar 
Author-X-Name-Last: Jalles 
Author-Name: Ricardo M. Sousa 
Author-X-Name-First: Ricardo M. 
Author-X-Name-Last: Sousa 
Title: Fiscal consolidation and financial reforms 
Abstract:
 We use a rare events logistic regression model as well as traditional
 probit and logit models to investigate the impact of fiscal consolidation
 on the likelihood of financial reforms for a panel of 17 countries over
 the period 1980-2005. We show that large austerity plans, mainly
 implemented through spending cuts rather than tax hikes, promote financial
 reforms. By considering reforms affecting specific areas of the financial
 sector, we find that the banking sector reforms and domestic finance
 reforms are more likely to occur when fiscal adjustments are put in place.
 Interestingly, while banking sector reforms are mainly prompted during
 periods of tax-driven consolidations, spending cuts driven consolidation
 packages seem to propel the implementation of domestic finance reforms.
 Finally, we show that higher inflation, lower degree of trade openness, a
 deterioration of financial conditions and, to some extent, a fall in the
 degree of competitiveness enhance the probability of financial reforms.
Journal: Applied Economics 
Pages: 3740-3755 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021457 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021457 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3740-3755




Template-Type: ReDIF-Article 1.0
Author-Name: Balẳ &Eacute;gert 
Author-X-Name-First: Balẳ 
Author-X-Name-Last: &Eacute;gert 
Title: The 90% public debt threshold: the rise and fall of a stylized fact 
Abstract:
 We put the original Reinhart-Rogoff data-set, made public by Herndon
 <italic>et al.</italic> (2013), to a formal econometric test to identify
 public debt thresholds endogenously. We show that the nonlinear relation
 between debt and growth is not robust. Taken with a pinch of salt, our
 results suggest, however, that a negative association between central
 government debt and growth may set in at debt levels as low as 20% of GDP.
 Further (and greater) thresholds may exist, but their magnitude is
 uncertain. For general government debt, the threshold is considerably
 higher at about 50%. Country-specific estimates reveal a large amount of
 cross-country heterogeneity. For some countries including the United
 States, a nonlinear negative link can be detected at about 30% of GDP. For
 others, no nonlinearities can be established. Our results are a formal
 econometric confirmation that the 90% public debt threshold is not in the
 Reinhart-Rogoff data. But our results also seem to suggest that public
 debt be associated with poor economic performance at fairly moderate
 public debt levels. The absence of threshold effects or low estimated
 thresholds may not preclude the emergence of further threshold effects,
 especially as public debt levels are rising to unprecedentedly high
 levels.
Journal: Applied Economics 
Pages: 3756-3770 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021463 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021463 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3756-3770




Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Seppecher 
Author-X-Name-First: Pascal 
Author-X-Name-Last: Seppecher 
Author-Name: Isabelle Salle 
Author-X-Name-First: Isabelle 
Author-X-Name-Last: Salle 
Title: Deleveraging crises and deep recessions: a behavioural approach 
Abstract:
 Macroeconomic dynamics are characterized by alternating patterns of
 periods of relative stability and large swings. Standard microfounded
 macroeconomic models account for these patterns through exogenous and
 persistent shocks. In this article, we develop a fully decentralized and
 microfounded macroeconomic agent-based model, augmented with an opinion
 model, which produces endogenous waves of pessimism and optimism that feed
 back into firms' leverage and households' precautionary saving behaviour.
 A major emergent property of our model is precisely the complex
 successions of stable and unstable macroeconomic regimes. The model is
 further able to account for a wide spectrum of macro and micro empirical
 regularities. Within this framework, we analyse a series of macroeconomic
 phenomena of key relevance in the current macroeconomic debate, especially
 the occurrence of deleveraging crises and Fisherian debt-deflation
 recessions. Our analysis suggests that the relative dynamics of prices and
 wages and the resulting income distribution along a deflationary path are
 critical determinants of the severity of the recession and the chances of
 recovery.
Journal: Applied Economics 
Pages: 3771-3790 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021456 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021456 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3771-3790




Template-Type: ReDIF-Article 1.0
Author-Name: Filippo Ferroni 
Author-X-Name-First: Filippo 
Author-X-Name-Last: Ferroni 
Author-Name: Benjamin Klaus 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Klaus 
Title: Euro Area business cycles in turbulent times: convergence or decoupling? 
Abstract:
 We study the business cycle properties of the four largest European
 economies in the wake of the recent recession episodes. The analysis is
 based on the factors estimated from a multi-country and multi-sector
 data-rich environment. We measure alikeness of business cycles by studying
 the synchronization of up and down phases, the convergence properties of
 country fluctuations towards the Euro Area (EA) cycles and the
 contribution of the EA factor to national GDP volatilities. While the
 economic fluctuations of the four EA member states were similar before the
 global financial turmoil, we gather compelling evidence of an asymmetric
 behaviour of Spanish fluctuations relative to the EA one.
Journal: Applied Economics 
Pages: 3791-3815 
Issue: 34-35 
Volume: 47 
Year: 2015 
Month: 7 
X-DOI: 10.1080/00036846.2015.1021458 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021458 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3791-3815




Template-Type: ReDIF-Article 1.0
Author-Name: Shu Chun Chang 
Author-X-Name-First: Shu Chun 
Author-X-Name-Last: Chang 
Author-Name: Ching-Horng Tsai 
Author-X-Name-First: Ching-Horng 
Author-X-Name-Last: Tsai 
Title: The adoption of new technology by the farmers in Taiwan 
Abstract:
 This study addresses the technologies the farmers adopted, their reasons
 for adopting these technologies and the result of adopting these
 technologies. The design and strategy used to collect the data needed are
 both qualitative and quantitative. Farmers who practised traditional
 farming methods and those who adopted the new technologies were both given
 survey questionnaires and were interviewed.The result of the study shows
 that the technologies applied by the farmers are the use of tractors in
 tilling the ground, the use of machinery in planting, the practice of
 irrigation and the use of a combination of organic and commercial
 fertilizers. The reasons for the adoption of the latter are the
 availability of chemicals and the convenience of their use, and this is
 used to enhance the growth of plants. The results of the new technology
 adoption are high yields of produce, production of hybrid crops, and the
 saving of labour, thus increasing the income of the farmers.
Journal: Applied Economics 
Pages: 3817-3824 
Issue: 36 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1019035 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019035 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3817-3824




Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Dittrich 
Author-X-Name-First: Marcus 
Author-X-Name-Last: Dittrich 
Title: Gender differences in trust and reciprocity: evidence from a large-scale experiment with heterogeneous subjects 
Abstract:
 This article examines gender differences in an experimental trust game.
 Recent studies have shown that men trust more and that women are more
 reciprocal in laboratory experiments. Participants in these studies,
 however, are typically university students who may not be representative
 of the entire population. In this study, we use data from a large-scale
 experiment with heterogeneous subjects who are representative of the
 German population. We find that men exhibit not only more trusting
 behaviour, but also more reciprocating behaviour than women. Moreover, our
 results are indicative of age-dependent gender differences. For men, we
 find an inverse U-shaped relationship between age, on the one hand, and
 both trust and reciprocity, on the other; however, we do not find age
 effects for women.
Journal: Applied Economics 
Pages: 3825-3838 
Issue: 36 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1019036 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019036 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3825-3838




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Muller 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Muller 
Author-Name: Lionel Page 
Author-X-Name-First: Lionel 
Author-X-Name-Last: Page 
Title: A new approach to measure tactical voting: evidence from the British elections 
Abstract:
 Although tactical voting attracts a great deal of attention, it is very
 hard to measure as it requires knowledge of both individuals' voting
 choices as well as their unobserved preferences. In this article, we
 present a simple empirical strategy to nonparametrically identify tactical
 voting patterns directly from balloting results. This approach allows us
 to study the magnitude and direction of strategic voting as well as to
 verify which information voters and parties take into account to determine
 marginal constituencies. We show that tactical voting played a significant
 role in the 2010 election, mainly for Liberal-Democratic voters supporting
 Labour. Moreover, our results suggest that voters seem to form their
 expectations based on a national swing in vote shares rather than
 newspaper guides published in the main media outlets or previous election
 outcomes. We also present some evidence that suggests that campaign
 spending is not driving tactical voting.
Journal: Applied Economics 
Pages: 3839-3858 
Issue: 36 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1019037 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019037 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3839-3858




Template-Type: ReDIF-Article 1.0
Author-Name: Lijuan Huo 
Author-X-Name-First: Lijuan 
Author-X-Name-Last: Huo 
Author-Name: Tae-Hwan Kim 
Author-X-Name-First: Tae-Hwan 
Author-X-Name-Last: Kim 
Author-Name: Yunmi Kim 
Author-X-Name-First: Yunmi 
Author-X-Name-Last: Kim 
Title: Revisiting growth empirics based on IV panel quantile regression 
Abstract:
 We analyse the well-known issue of economic growth convergence using
 quantile regression. Most previous studies have used a least squares (LS)
 method or variation, which focuses on the issue only at the mean of the
 growth rate. Therefore, such results cannot provide a satisfactory answer
 to what can happen if the growth rate is far from the conditional mean
 level. For example, we consider the following question: do we still have
 economic growth convergence or is the convergence speed changed in a low
 growth period such as the 'Great Recession,' that started in 2008? We
 propose using instrumental variable panel quantile regression to answer
 this question. Our empirical findings demonstrate that economic growth
 convergence occurs at all quantiles over the entire conditional
 distribution, but that the convergence speed does depend on quantiles; the
 convergence speed is much higher when the GDP growth rate is at either
 high or low quantiles.
Journal: Applied Economics 
Pages: 3859-3873 
Issue: 36 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1019038 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3859-3873




Template-Type: ReDIF-Article 1.0
Author-Name: Vasilios Plakandaras 
Author-X-Name-First: Vasilios 
Author-X-Name-Last: Plakandaras 
Author-Name: Periklis Gogas 
Author-X-Name-First: Periklis 
Author-X-Name-Last: Gogas 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Theophilos Papadimitriou 
Author-X-Name-First: Theophilos 
Author-X-Name-Last: Papadimitriou 
Title: US inflation dynamics on long-range data 
Abstract:
 In this article, we evaluate inflation persistence in the United States
 using long-range monthly and annual data. The importance of inflation
 persistence is crucial to policy authorities and market participants,
 since the level of inflation persistence provides an indication on the
 susceptibility of the economy to exogenous shocks. Departing from classic
 econometric approaches found in the relevant literature, we evaluate
 inflation persistence through the nonparametric Hurst exponent within both
 a global and a rolling window framework. Moreover, we expand our analysis
 to detect the potential existence of chaos in the data generating process,
 in order to enhance the robustness of our conclusions. Overall, we find
 that inflation persistence is high from 1775 to 2013 for the annual
 data-set and from February 1876 to May 2014 in monthly frequency,
 respectively. Especially from the monthly data-set, the rolling window
 approach allows us to derive that inflation persistence has reached to
 historically high levels in the post-Bretton Woods period and remained
 there ever since.
Journal: Applied Economics 
Pages: 3874-3890 
Issue: 36 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1019039 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3874-3890




Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Alexander Ong 
Author-X-Name-First: Marcus Alexander 
Author-X-Name-Last: Ong 
Title: An information theoretic analysis of stock returns, volatility and trading volumes 
Abstract:
 Information theory is used to examine the dynamic relationships between
 stock returns, volatility and trading volumes for S&P500 stocks. This
 provides an alternative approach to traditional Granger causality tests
 when dealing with nonlinear relationships. The article highlights the
 dominant role played by trading volumes in all of these relationships -
 even in the return-volatility relation - and finds evidence of a market
 level feedback effect from index returns to the return-volatility relation
 at the stock level. The article also produces a number of stylized facts
 from an information theoretic perspective.
Journal: Applied Economics 
Pages: 3891-3906 
Issue: 36 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1019040 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019040 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3891-3906




Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova 
Author-X-Name-First: Petra 
Author-X-Name-Last: Maresova 
Author-Name: Blanka Klimova 
Author-X-Name-First: Blanka 
Author-X-Name-Last: Klimova 
Title: Investment evaluation of cloud computing in the European business sector 
Abstract:
 The importance of cloud computing is acknowledged both at national and
 entrepreneurial level. Its potential in business has been already
 described in many studies (Dillon <italic>et al.</italic>, 2010; Bayrak
 <italic>et al.</italic>, 2011; Nuseibeh, 2011; Repschlaeger <italic>et
 al.</italic>, 2013). However, many European countries do not exploit it
 much in spite of many positive responses made by respected consulting
 companies. The reasons for this are a very low level of changes in
 companies, ignorance of opportunities of the given technology and,
 consequently, an inability to count the return of investment. Therefore,
 the aim of this article is to introduce a tool for the investment
 evaluation of cloud computing, which corresponds to the needs of the
 European business environment and to the properties of this technology.
 Furthermore, the cost Benefit Analysis (CBA) method is explored. This
 method is adjusted for cloud computing on the basis of companies'
 requirements, which were collected from quantitative and qualitative
 surveys and from the interviews with experts in cloud computing from
 academic and business environments. In addition, individual stages of the
 CBA method used in cloud computing are described.
Journal: Applied Economics 
Pages: 3907-3920 
Issue: 36 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1019041 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019041 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3907-3920




Template-Type: ReDIF-Article 1.0
Author-Name: Vera Ogeh Fiador 
Author-X-Name-First: Vera Ogeh 
Author-X-Name-Last: Fiador 
Author-Name: Nicholas Biekpe 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Biekpe 
Title: Monetary policy and exchange market pressure-evidence from sub-Saharan Africa 
Abstract:
 The purpose of this study was to assess the impact of monetary policy on
 foreign exchange market pressure (EMP) in developing country contexts for
 some selected countries in sub-Saharan Africa (SSA) and to measure the
 ability of monetary policy to significantly address currency pressures
 that arise from trading on the global market. This study was motivated by
 the fact that most of the SSA countries are developing economies that have
 negative net export positions and stand to lose significantly from
 consistently deteriorating foreign exchange position. The study,
 therefore, employs a dynamic panel model to test the hypothesis that a
 tighter monetary policy stance lends strength to a currency and vice
 versa, using 20 SSA economies for the period from 1991 to 2010. This study
 finds a negative and significant relationship between monetary policy and
 EMP, implying an easing of EMP in the face of contractionary monetary
 policy. The findings also point to significant relations between aggregate
 output, levels of public debt, the current account balance, terms of trade
 and EMP. Findings of this study have important implications as regards the
 policy direction on exchange rate and currency management.
Journal: Applied Economics 
Pages: 3921-3937 
Issue: 37 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023937 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023937 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3921-3937




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Marcelo Florensa 
Author-X-Name-First: Luis Marcelo 
Author-X-Name-Last: Florensa 
Author-Name: Laura MᲱuez-Ramos 
Author-X-Name-First: Laura 
Author-X-Name-Last: MᲱuez-Ramos 
Author-Name: Inmaculada Mart󹑺-Zarzoso 
Author-X-Name-First: Inmaculada 
Author-X-Name-Last: Mart󹑺-Zarzoso 
Author-Name: Mar𨁌uisa Recalde 
Author-X-Name-First: Mar𨁌uisa 
Author-X-Name-Last: Recalde 
Title: Regional versus global production networks: where does Latin America stand? 
Abstract:
 This article quantifies the effects of the Latin American Integration
 Association (LAIA) and the Southern Common Market (Mercosur) on the trade
 of intermediate goods and also on the trade of final goods. It is the
 first article to investigate whether increasing imports of intermediate
 goods from different regions to Latin America have led to higher exports
 of final and intermediate goods. The article uses sectoral data for trade
 in goods between 11 LAIA members over the period 1991-2008. The main
 results indicate evidence of increasing regional production networks,
 which have strengthened in the 2000s. Moreover, the findings show evidence
 of the emergence of global production networks, especially with respect to
 intermediate imports from China.
Journal: Applied Economics 
Pages: 3938-3956 
Issue: 37 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023938 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023938 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3938-3956




Template-Type: ReDIF-Article 1.0
Author-Name: Yuko Mori 
Author-X-Name-First: Yuko 
Author-X-Name-Last: Mori 
Title: Voter turnout and the principle of 'one person, one vote': empirical evidence from the constituency freeze in India 
Abstract:
 This article uses panel data from national and state elections in India
 during the period 1977-2007 to examine the effect of inequality in
 constituency population size on voter turnout. During this period,
 constituency boundaries in India remained fixed. As a result, differences
 in population size between constituencies increased, thus changing the
 value of a single vote. Using this large variation in population size and
 informative data, this article carefully distinguishes the effect of
 population size from other factors. We find that an increase of one
 million electorates decreases voter turnout by 12-27%. In addition, we
 find that the share of votes gained by national political parties is
 greater in small-population constituencies. This suggests that political
 parties direct their efforts in electoral campaigns preferentially to less
 populous constituencies; as a result, voters in small constituencies are
 more likely to participate in elections.
Journal: Applied Economics 
Pages: 3957-3970 
Issue: 37 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023939 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023939 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3957-3970




Template-Type: ReDIF-Article 1.0
Author-Name: Ant󮩯 Afonso 
Author-X-Name-First: Ant󮩯 
Author-X-Name-Last: Afonso 
Author-Name: Christophe Rault 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Rault 
Title: Short- and long-run behaviour of long-term sovereign bond yields 
Abstract:
 We assess the short- and long-run behaviour of long-term sovereign bond
 yields in OECD countries using a dynamic panel approach to reflect
 financial and economic integration. Given the existence of cross-country
 dependence regarding sovereign yields and its determinants, we resort to
 simulation and bootstrap methods. Results based on the Common Correlated
 Effect estimator of Pesaran and on Panel Error Correction Models to sort
 out short- and long-run fiscal developments show that in addition to
 common movements in sovereign yields, investors also consider country
 differences arising from specific factors (inflation, budgetary and
 current account imbalances, real effective exchange rates, and liquidity).
Journal: Applied Economics 
Pages: 3971-3993 
Issue: 37 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023940 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023940 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3971-3993




Template-Type: ReDIF-Article 1.0
Author-Name: M&#xaa; Jes&uacute;s Alonso-Nuez 
Author-X-Name-First: M&#xaa; Jes&uacute;s 
Author-X-Name-Last: Alonso-Nuez 
Author-Name: M󮩣a Flores-Garc𨀍
Author-X-Name-First: M󮩣a 
Author-X-Name-Last: Flores-Garc𨀍
Author-Name: Antonio Mu񯺭Porcar 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Mu񯺭Porcar 
Title: Construction industry in Spain, is it guilty of the current crisis? 
Abstract:
 This article presents an analysis of the construction sector in Spain over
 the last decade. Several indicators are constructed based on Input-Output
 tables that demonstrate that the importance attributed to this sector does
 not correspond to its true role in the overall Spanish economy. Although
 it is true that the construction industry is important for other sectors
 of the economy, it is also true that the sector shows indicators that are
 average for the Spanish economy and lower than those of the industrial
 sector.
Journal: Applied Economics 
Pages: 3994-4006 
Issue: 37 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023941 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023941 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3994-4006




Template-Type: ReDIF-Article 1.0
Author-Name: Zuzana Janko 
Author-X-Name-First: Zuzana 
Author-X-Name-Last: Janko 
Author-Name: Gurleen Popli 
Author-X-Name-First: Gurleen 
Author-X-Name-Last: Popli 
Title: Examining the link between crime and unemployment: a time-series analysis for Canada 
Abstract:
 We use national and regional Canadian data to analyse the relationship
 between economic activity (as reflected by the unemployment rate) and
 crime rates. Given potential aggregation bias, we disaggregate the crime
 data and look at the relationship between six different types of crimes
 rates and unemployment rate; we also disaggregate the data by region. We
 employ an error correction model in our analysis to test for short-run and
 long-run dynamics. We find no evidence of long-run relationship between
 crime and unemployment, when we look at both disaggregation by type of
 crime and disaggregation by region. Lack of evidence of a long-run
 relationship indicates we have no evidence of the motivation hypothesis.
 For selected types of property crimes, we find some evidence of a
 significant negative short-run relationship between crime and
 unemployment, lending support to the opportunity hypothesis. Inclusion of
 control variables in the panel analysis does not alter the findings,
 qualitatively or quantitatively.
Journal: Applied Economics 
Pages: 4007-4019 
Issue: 37 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023942 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023942 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:4007-4019




Template-Type: ReDIF-Article 1.0
Author-Name: Xian Zheng 
Author-X-Name-First: Xian 
Author-X-Name-Last: Zheng 
Title: Expectation, volatility and liquidity in the housing market 
Abstract:
 Measuring housing price volatility is fundamental to understanding the
 dynamics of housing price risk. This article aims to explore whether a
 liquidity factor plays a role in explaining the second moment (i.e. the
 volatility) of housing prices. Housing price volatility is measured as the
 conditional variance of a Generalized Auto Regressive Conditional
 Heteroscedasticity (GARCH) model under the Adaptive Expectations
 framework. The empirical evidence reveals that volatility transmits from
 smaller housing units to larger housing units, which indirectly supports
 the trade-up effect discussed in the literature. In addition, less liquid
 housing classes are more sensitive to unexpected liquidity shocks, and the
 starter housing class is extraordinarily sensitive to negative liquidity
 shocks. Consistent with friction search theory, pricing errors are
 alleviated as the trading volume increases, because the valuation price
 tends to be more accurate as more information is available.
Journal: Applied Economics 
Pages: 4020-4035 
Issue: 37 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023943 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023943 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:4020-4035




Template-Type: ReDIF-Article 1.0
Author-Name: Joscha Beckmann 
Author-X-Name-First: Joscha 
Author-X-Name-Last: Beckmann 
Author-Name: Ansgar Belke 
Author-X-Name-First: Ansgar 
Author-X-Name-Last: Belke 
Author-Name: Michael Kühl 
Author-X-Name-First: Michael 
Author-X-Name-Last: Kühl 
Title: Foreign exchange market interventions and the $-&#xa5; exchange rate in the long run 
Abstract:
 This article examines whether foreign exchange market interventions
 conducted by the Bank of Japan are important for the dollar-yen exchange
 rate in the long run. We rely on a re-examination of the empirical
 performance of a monetary exchange rate model. This is basically not a new
 topic; however, we focus on two new questions. First, does the
 consideration of periods of massive interventions in the foreign exchange
 market uncover a potential long-run relationship between the exchange rate
 and its fundamentals? Second, do Forex interventions support the
 adjustment towards a long-run equilibrium value? Our results suggest that
 taking periods of interventions into account within a monetary model does
 improve the goodness of fit of an identified long-run relationship to a
 significant degree. Furthermore, Forex interventions increase the speed of
 adjustment towards long-run equilibrium in some periods, particularly in
 periods of coordinated forex interventions. Our results indicate that only
 coordinated interventions seem to stabilize the dollar-yen exchange rate
 in a long-run perspective.
Journal: Applied Economics 
Pages: 4037-4055 
Issue: 38 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1013621 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013621 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4037-4055




Template-Type: ReDIF-Article 1.0
Author-Name: Gregory A. Gilpin 
Author-X-Name-First: Gregory A. 
Author-X-Name-Last: Gilpin 
Author-Name: Luke A. Pennig 
Author-X-Name-First: Luke A. 
Author-X-Name-Last: Pennig 
Title: Compulsory schooling laws and school crime 
Abstract:
 Extensive literature demonstrates that compulsory schooling laws improve
 educational attainment, well-being, civic involvement, and labour market
 outcomes. However, at-risk youth incapacitated to schools may impact the
 learning environment and school safety. The purpose of this article is to
 study whether raising the minimum dropout age (MDA) requirement above 16
 increases crime committed within US public high schools. A
 difference-in-difference estimation exploits changes in state-level MDA
 laws over time and indicates that schools in states that raise their MDA
 requirement to 18 incur more overall crime relative to schools in states
 that do not, while no effect on overall crime is identified when the MDA
 requirement is raised to 17. Furthermore, these effects persist for
 4&nbsp;years after passage and more intensely in metropolitan areas.
 Coupling this research with existing literature suggests that when the MDA
 requirement is raised to 18, only a small portion of the observed
 reduction in juvenile crime is displaced to schools. Analysis by category
 of crime reveals schools incur more physical attacks, no change in illegal
 drug and property crimes, and fewer violent crimes in states that raise
 their MDA requirement to 18, while illegal drug crimes increase in states
 that raise their MDA requirement to 17.
Journal: Applied Economics 
Pages: 4056-4073 
Issue: 38 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023944 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023944 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4056-4073




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Louis Combes 
Author-X-Name-First: Jean Louis 
Author-X-Name-Last: Combes 
Author-Name: Christian Ebeke 
Author-X-Name-First: Christian 
Author-X-Name-Last: Ebeke 
Author-Name: Mathilde Maurel 
Author-X-Name-First: Mathilde 
Author-X-Name-Last: Maurel 
Title: The effect of remittances prior to an election 
Abstract:
 The objective of the article is to assess whether remittances have an
 influence on political manipulation, which may occur prior to an election,
 through an increase in the government consumption-to-GDP ratio. We combine
 data from the National Elections across Democracy and Autocracy data set
 compiled and discussed in Hyde and Marinov (2012) and the World
 Development Indicators data set. We focus on 70 developing countries over
 the period 1990-2010. It appears that the political budget cycle is
 reduced up to the point where it is fully cancelled out at a remittance
 threshold of 10.7% of GDP. Those findings are robust to different
 robustness checks.
Journal: Applied Economics 
Pages: 4074-4089 
Issue: 38 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023945 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023945 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4074-4089




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Gius 
Author-X-Name-First: Mark 
Author-X-Name-Last: Gius 
Title: The effects of state and federal background checks on state-level gun-related murder rates 
Abstract:
 The purpose of the present study was to determine whether firearm
 background checks are significantly related to gun-related murder rates.
 The present study differs from prior research in several ways. First, a
 large longitudinal data-set is used; data for 50 states for the period
 1980-2011 are examined. Second, the effects of both federal and state
 background checks, including state-mandated private sales background
 checks, are estimated. Finally, a fixed effects model that controls for
 both state-level and year-specific effects is used. Results suggest that
 states that require dealer background checks have lower gun-related murder
 rates than other states. In addition, after implementation of the Brady
 Act, gun-related murder rates fell. However, the results also suggest
 that, for the entire period in question, states with private sales
 background checks had higher gun-related murder rates than states with no
 such background checks. If one only looks the Brady Act period, however,
 then the private sales background check variable is insignificant. These
 results for private sales background checks are novel and contrary to the
 results of much prior research in this area.
Journal: Applied Economics 
Pages: 4090-4101 
Issue: 38 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023946 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023946 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4090-4101




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Karoubi 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Karoubi 
Author-Name: R駩s Chenavaz 
Author-X-Name-First: R駩s 
Author-X-Name-Last: Chenavaz 
Title: Prices for cash and cash for prices? Theory and evidence on convenient pricing 
Abstract:
 A transaction between a seller and a buyer incurs a payment cost. The
 payment cost is borne by the seller, depending on the payment instrument
 the buyer chooses, cash or card. Card payment is more costly than cash
 payment, so the seller prefers that the buyer pays cash. In this article,
 we study the strategy of the seller setting a <italic>convenient</italic>
 price, which simplifies transactions and pushes the buyer to pay cash. The
 theoretical analysis, which models both the seller and the buyer in a game
 setting, derives two propositions: (1) the seller is more likely to set a
 more convenient price and (2) the buyer is more likely to pay cash a more
 convenient price. The empirical analysis supports both propositions. Thus,
 sellers adopt a convenience pricing strategy - prices for cash - and this
 strategy pushes buyers to pay cash - cash for prices.
Journal: Applied Economics 
Pages: 4102-4115 
Issue: 38 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023947 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023947 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4102-4115




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Boussemart 
Author-X-Name-First: Jean-Philippe 
Author-X-Name-Last: Boussemart 
Author-Name: Herv頌eleu 
Author-X-Name-First: Herv頍
Author-X-Name-Last: Leleu 
Author-Name: Vivian Valdmanis 
Author-X-Name-First: Vivian 
Author-X-Name-Last: Valdmanis 
Title: A two-stage translog marginal cost pricing approach for Floridian hospital outputs 
Abstract:
 Since the passage of the Affordable Care Act (ACA) of 2010, issues still
 remain regarding the mandated purchase of insurance to ensure more
 universal coverage. One such issue is the pricing of these insurance
 packages and whether or not the reimbursements will cover necessary
 services. Therefore, policy concerns exist that increasing the number of
 insured individuals may not curtail costs. Conversely, providers may not
 wish to treat patients covered by excessively frugal plans such as
 Medicaid; hence the trade-offs between access and cost control. In this
 article, we present findings from a cost function and a productivity
 approach to determine the marginal cost of providing inpatient hospital
 care for hospitals operating in Florida during 2005. Using these
 methodological approaches, we are able to use the marginal rate of
 transformation to determine the relative marginal costs while controlling
 for hospital technical and allocative inefficiency. Our work differs from
 earlier articles as we avoid the Greene problem for cross-sectional models
 through a two-step approach. By including both reimbursement rates under
 conditions of hospital efficiency, we can ascertain payment schemes that
 should, at least in theory, cover necessary costs for patient care without
 leading to excessive input usage.
Journal: Applied Economics 
Pages: 4116-4127 
Issue: 38 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023948 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023948 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4116-4127




Template-Type: ReDIF-Article 1.0
Author-Name: Tim Pawlowski 
Author-X-Name-First: Tim 
Author-X-Name-Last: Pawlowski 
Author-Name: Georgios Nalbantis 
Author-X-Name-First: Georgios 
Author-X-Name-Last: Nalbantis 
Title: Competition format, championship uncertainty and stadium attendance in European football - a small league perspective 
Abstract:
 To increase the number of regular season games, small football leagues are
 often organized as quadruple round robin tournaments with teams playing
 each other four times. <italic>Theoretically</italic>, however, the more
 games played, the less uncertain is the championship race, reducing fan
 interest in the league. This article uses data from Austria and
 Switzerland to study the relationship between competition format,
 championship uncertainty and attendance demand
 <italic>empirically</italic>. Results suggest that a team still in
 contention to win the championship positively affects attendance, while it
 is not the specificity of the competition format that <italic>per
 se</italic> contributes to less championship uncertainty.
Journal: Applied Economics 
Pages: 4128-4139 
Issue: 38 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1023949 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023949 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4128-4139




Template-Type: ReDIF-Article 1.0
Author-Name: Hossein Hassani 
Author-X-Name-First: Hossein 
Author-X-Name-Last: Hassani 
Author-Name: Emmanuel Sirimal Silva 
Author-X-Name-First: Emmanuel Sirimal 
Author-X-Name-Last: Silva 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Mawuli K. Segnon 
Author-X-Name-First: Mawuli K. 
Author-X-Name-Last: Segnon 
Title: Forecasting the price of gold 
Abstract:
 This article seeks to evaluate the appropriateness of a variety of
 existing forecasting techniques (17 methods) at providing accurate and
 statistically significant forecasts for gold price. We report the results
 from the nine most competitive techniques. Special consideration is given
 to the ability of these techniques to provide forecasts which outperforms
 the random walk (RW) as we noticed that certain multivariate models (which
 included prices of silver, platinum, palladium and rhodium, besides gold)
 were also unable to outperform the RW in this case. Interestingly, the
 results show that none of the forecasting techniques are able to
 outperform the RW at horizons of 1 and 9 steps ahead, and on average, the
 exponential smoothing model is seen providing the best forecasts in terms
 of the lowest root mean squared error over the 24-month forecasting
 horizons. Moreover, we find that the univariate models used in this
 article are able to outperform the Bayesian autoregression and Bayesian
 vector autoregressive models, with exponential smoothing reporting
 statistically significant results in comparison with the former models,
 and classical autoregressive and the vector autoregressive models in most
 cases.
Journal: Applied Economics 
Pages: 4141-4152 
Issue: 39 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026580 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4141-4152




Template-Type: ReDIF-Article 1.0
Author-Name: Ju-Chin Huang 
Author-X-Name-First: Ju-Chin 
Author-X-Name-Last: Huang 
Author-Name: Min Qiang Zhao 
Author-X-Name-First: Min Qiang 
Author-X-Name-Last: Zhao 
Title: Model selection and misspecification in discrete choice welfare analysis 
Abstract:
 This study extends the work by Herriges and Kling (1997) to further
 evaluate the impact of discrete choice modelling techniques on welfare
 measures. Particularly, we evaluate the performance of the increasingly
 popular mixed logit model and the computational strategy for deriving
 discrete choice welfare measures. Our simulation results show that model
 misspecification can have profound effects on welfare measures. In
 general, the flexible mixed logit model performs relatively well in the
 presence of misspecification. However, when the nesting structure can be
 appropriately identified (via statistical tests and a priori
 knowledge/experience), the nested logit model provides more reliable
 welfare measures than the mixed logit model.
Journal: Applied Economics 
Pages: 4153-4167 
Issue: 39 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026581 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026581 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4153-4167




Template-Type: ReDIF-Article 1.0
Author-Name: Jes&uacute;s A. Mu񯺭Sep&uacute;lveda 
Author-X-Name-First: Jes&uacute;s A. 
Author-X-Name-Last: Mu񯺭Sep&uacute;lveda 
Author-Name: Diego Rodr򍑥z 
Author-X-Name-First: Diego 
Author-X-Name-Last: Rodr򍑥z 
Title: Geographical and industrial spillovers in entry decisions across export markets 
Abstract:
 This article addresses sequential entry decisions in export markets. It
 focuses on externalities derived from previous export activity in
 countries close to those for which a potential entry decision is made
 (<italic>geographical spillovers</italic>) and externalities derived from
 previous presence of other firms in the same industry (<italic>industrial
 spillovers</italic>). The empirical analysis uses Spanish microdata for
 the period 2000-2010 in a firm decision model that also integrates country
 and industry characteristics. The results suggest that these two types of
 spillovers have a positive effect in explaining entry decisions in new
 export markets, though both are smaller in magnitude than the effects
 coming from previous presence in the same specific destination.
Journal: Applied Economics 
Pages: 4168-4183 
Issue: 39 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026582 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026582 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4168-4183




Template-Type: ReDIF-Article 1.0
Author-Name: Hala El-Said 
Author-X-Name-First: Hala 
Author-X-Name-Last: El-Said 
Author-Name: Mahmoud Al-Said 
Author-X-Name-First: Mahmoud 
Author-X-Name-Last: Al-Said 
Author-Name: Chahir Zaki 
Author-X-Name-First: Chahir 
Author-X-Name-Last: Zaki 
Title: Trade and access to finance of SMEs: is there a nexus? 
Abstract:
 Limited resources and barriers to entry are critically higher for small
 and medium enterprises (SMEs) than for large companies. One of the reasons
 explaining why the resources of SMEs are scarce is their limited access to
 financial services. This in turn reduces the likelihood of exporting. For
 this reason, using the census of SMEs done by the Central Bank of Egypt
 and the Egyptian Banking Institute, we try to examine the impact of access
 to finance on their export performance. We measure the latter by the
 extensive margin that means the probability of becoming an exporter and
 the probability of serving several markets. We found a significant and
 positive impact of dealing with banks and having banking facilities on the
 probability of exporting and that of exporting to more than one
 destination. Thus, wider and more efficient financial services are likely
 to increase the number of exporters and boost exports' diversification.
Journal: Applied Economics 
Pages: 4184-4199 
Issue: 39 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026583 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026583 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4184-4199




Template-Type: ReDIF-Article 1.0
Author-Name: Shan-Ying Chu 
Author-X-Name-First: Shan-Ying 
Author-X-Name-Last: Chu 
Author-Name: Hau Chyi 
Author-X-Name-First: Hau 
Author-X-Name-Last: Chyi 
Title: Welfare use and children's longer-term achievement 
Abstract:
 We investigate the effects of mothers' welfare use on children's
 longer-term performance. To address issues of improper comparison groups
 and the endogenous nature of welfare participation, we focus on
 less-educated single mothers and adopt a correction function approach.
 Data are drawn from the National Longitudinal Survey of Youth 1979 -
 Children and Young Adult from 1994 to 2010. Estimation results confirm the
 positive longer-term effects of mothers' welfare use. On average, a child
 whose mother used welfare in all 20 quarters after childbirth experiences
 a 0.56-point increase in their yearly high school grade point average, is
 12% more likely to graduate from high school and earns $1112.76 more in
 the first-observed income than a child whose mother does not.
Journal: Applied Economics 
Pages: 4200-4207 
Issue: 39 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026584 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026584 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4200-4207




Template-Type: ReDIF-Article 1.0
Author-Name: Luc Arrondel 
Author-X-Name-First: Luc 
Author-X-Name-Last: Arrondel 
Author-Name: Fr餩rique Savignac 
Author-X-Name-First: Fr餩rique 
Author-X-Name-Last: Savignac 
Title: Risk management, housing and stockholding 
Abstract:
 This article investigates the possible explanations of the stockholding
 puzzle by focusing on housing and other uninsurable risks (associated with
 income, health and business). Taking the French household wealth survey
 (Patrimoine 2004, French National Statistical Institute), we find that the
 share of financial wealth invested in stocks depends on transaction and
 information costs, risk aversion, exposure to real estate risk and, to a
 lesser extent, labour market risk. These results are obtained by
 controlling for endogenous home ownership status.
Journal: Applied Economics 
Pages: 4208-4227 
Issue: 39 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026585 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026585 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4208-4227




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan A. Batten 
Author-X-Name-First: Jonathan A. 
Author-X-Name-Last: Batten 
Author-Name: Peter G. Szilagyi 
Author-X-Name-First: Peter G. 
Author-X-Name-Last: Szilagyi 
Author-Name:  Wagner 
Author-X-Name-First:  
Author-X-Name-Last: Wagner 
Title: Should emerging market investors buy commodities? 
Abstract:
 One reason that investors hold commodities is to receive diversification
 benefits. However, while an extensive set of existing studies demonstrate
 diversification benefits when investors hold international stocks or
 bonds, they are generally silent on the implications of holding
 commodities. Using an asset pricing framework, we investigate the benefits
 to investors from holding commodities, both individually and in
 portfolios. Generally, commodity and stock markets are integrated,
 although there are time-varying benefits to investors that are subject to
 sample period selection and investment horizon. We show that Asian
 investors receive positive risk adjusted returns in gold and rice markets
 but not in any of the other commodity markets investigated. The risk
 adjusted returns are time-varying: during the Asian financial crisis risk
 adjusted returns were negative - a penalty for investing in commodities -
 whereas during the global financial crisis the reverse was true and
 investors earned positive excess returns. The time-varying nature of the
 benefits that arise from diversification in commodities and their
 breakdown during periods of crisis, highlight the problems that investors
 may face when using commodities for long-term investment in addition to
 traditional holdings of stocks and bonds.
Journal: Applied Economics 
Pages: 4228-4246 
Issue: 39 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026586 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026586 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4228-4246




Template-Type: ReDIF-Article 1.0
Author-Name: Eike Emrich 
Author-X-Name-First: Eike 
Author-X-Name-Last: Emrich 
Author-Name: Christian Pierdzioch 
Author-X-Name-First: Christian 
Author-X-Name-Last: Pierdzioch 
Title: Testing economic models of volunteer labour supply: some empirical evidence for the German Red Cross 
Abstract:
 We use a new data set collected by means of a questionnaire study of
 volunteers of the German Red Cross to test predictions of three competing
 economic models of volunteer labour supply: the public-goods model, the
 private-consumption model and the human-capital model. The three competing
 economic models make different predictions regarding the response of a
 volunteer's labour supply to a change in the perceived labour supply of
 other volunteers. Our empirical results lend support to the public-goods
 model.
Journal: Applied Economics 
Pages: 4247-4259 
Issue: 40 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026587 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026587 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4247-4259




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Liu 
Author-X-Name-First: Yu 
Author-X-Name-Last: Liu 
Author-Name: Thomas M. Fullerton 
Author-X-Name-First: Thomas M. 
Author-X-Name-Last: Fullerton 
Title: Evidence from Mexico on social status and violence against women 
Abstract:
 This study investigates the impact of relative social status on violence
 against women in Mexico using state-level panel data. Relatively higher
 female social status, measured by educational, economic and political
 standings, is associated with lower homicide rates for women and lower
 intimate partner violence rates. More importantly, different status
 variables affect violence against women through different channels,
 depending on the victim-offender relationship. The results are robust to
 different specifications and different control variables. This study may
 provide helpful guidelines to policy-makers attempting to identify more
 effective means for deterring violence against women.
Journal: Applied Economics 
Pages: 4260-4274 
Issue: 40 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026588 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026588 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4260-4274




Template-Type: ReDIF-Article 1.0
Author-Name: Harry X. Wu 
Author-X-Name-First: Harry X. 
Author-X-Name-Last: Wu 
Author-Name: Esther Y. P. Shea 
Author-X-Name-First: Esther Y. P. 
Author-X-Name-Last: Shea 
Author-Name: Alice Shiu 
Author-X-Name-First: Alice 
Author-X-Name-Last: Shiu 
Title: Has China's fast industrial growth been efficient? An industry-level investigation with a newly constructed data set 
Abstract:
 We adopt contemporaneous, nonradial and variable returns to scale
 assumptions in a data envelopment analysis (DEA) exercise to address the
 inefficiency problem in Chinese industries in different policy regimes
 using a newly constructed data set for 24 Chinese manufacturing industries
 in 1952-2008. While confirming that the central planning period was indeed
 a 'graveyard' for productivity that entailed severe technical regress and
 efficiency losses, we do not find a steady improvement in efficiency
 during the reform period despite strong technical progress. We argue that
 the resurgent prominence of the government and the state sector since the
 late 1990s, especially following China's World Trade Organization
 accession, has obstructed the efficiency improvement.
Journal: Applied Economics 
Pages: 4275-4298 
Issue: 40 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026589 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026589 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4275-4298




Template-Type: ReDIF-Article 1.0
Author-Name: Zeynel Abidin Ozdemir 
Author-X-Name-First: Zeynel Abidin 
Author-X-Name-Last: Ozdemir 
Author-Name: Emre Aksoy 
Author-X-Name-First: Emre 
Author-X-Name-Last: Aksoy 
Title: Are real exchanges rate series really persistent?: evidence from three commonwealth of independent states countries 
Abstract:
 This article sets out to examine the degree of persistence in the real
 exchange rates of Kazakhstan, Kyrgyzstan and Russia, and tests the
 validity of Purchasing power parity (PPP) using monthly data covering
 1995:01-2013:12 period. The sum of autoregressive (AR) coefficients is
 used in order to examine persistence of the real exchange rate series and
 grid-bootstrap method is employed for the confidence intervals. The tests
 performed suggest two results: (1) Covering the full sample and sub-sample
 periods, excluding Kyrgyzstan in 1995:01-1998:07 and Russia in
 2008:09-2013:12 periods, disregarding the structural breaks in the data
 generating process, there is high persistency in real exchange rates; (2)
 there is evidence in support of PPP covering the full sample for every
 country except for Kyrgyzstan in 1995:01-1998:07 and Russia in
 2008:09-2013:12 periods.
Journal: Applied Economics 
Pages: 4299-4309 
Issue: 40 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026590 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026590 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4299-4309




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios J. Dimitriou 
Author-X-Name-First: Dimitrios J. 
Author-X-Name-Last: Dimitriou 
Author-Name: John C. Mourmouris 
Author-X-Name-First: John C. 
Author-X-Name-Last: Mourmouris 
Author-Name: Maria F. Sartzetaki 
Author-X-Name-First: Maria F. 
Author-X-Name-Last: Sartzetaki 
Title: Economic impact assessment of mega infrastructure pipeline projects 
Abstract:
 The economic development features for the decades after the Second World
 War provide evidence that investments to new infrastructures are a key
 driver in strengthening the national economy and enhancing nation's
 productivity, as it creates economic benefits and additional income.
 However, the decision for fund allocation and investments in mega
 infrastructure pipeline projects often must be made in conditions that are
 much more fraught with uncertainty. The key question in such decisions is
 if the economic impact caused by the new project could be able to
 essentially boost the economy by creating new jobs and generating new
 income on one hand; and which are the business sectors expected to archive
 the benefits of this investment. This article deals with the estimation of
 the mega infrastructure pipeline project economic effects in economy. The
 methodological framework is based on input-output approach providing
 quantitative estimations about the economic impact of the project in terms
 of new income and jobs. The numerical application deals with the
 assessment of a cross-border crude oil pipeline project, connecting the
 ports of Burgas (Bulgaria) and Alexandroupolis (Greece), establishing a
 new transportation corridor for the crude oil from Black Sea to Southeast
 Mediterranean.
Journal: Applied Economics 
Pages: 4310-4322 
Issue: 40 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026591 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026591 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4310-4322




Template-Type: ReDIF-Article 1.0
Author-Name: Chun Jiang 
Author-X-Name-First: Chun 
Author-X-Name-Last: Jiang 
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Title: Revisiting Purchasing Power Parity in OECD 
Abstract:
 This study revisits Purchasing Power Parity theory (PPP) in the 34 OECD
 countries during January 1994-August 2013. We use a new panel stationary
 test with both sharp breaks and smooth shifts, a novel approach to panel
 unit-root testing, proposed by Bahmani-Oskooee <italic>et al</italic>.
 (2014). The results indicate that the PPP holds in half of the 34 OECD
 countries. These results indicate the importance of proper modelling of
 both sharp breaks and smooth shifts in real effective exchange rate series
 of OECD countries.
Journal: Applied Economics 
Pages: 4323-4334 
Issue: 40 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1026592 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026592 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4323-4334




Template-Type: ReDIF-Article 1.0
Author-Name: Nathan P. Hendricks 
Author-X-Name-First: Nathan P. 
Author-X-Name-Last: Hendricks 
Author-Name: Aaron Smith 
Author-X-Name-First: Aaron 
Author-X-Name-Last: Smith 
Title: Grouped coefficients to reduce bias in heterogeneous dynamic panel models with small <italic>T</italic> 
Abstract:
 We propose the grouped coefficients estimator to reduce bias in dynamic
 panels with small <italic>T</italic> that have a multilevel structure to
 the coefficient and factor loading heterogeneity. If groups are chosen
 such that the within-group heterogeneity is small, then the grouped
 coefficients estimator can lead to substantial bias reduction compared to
 pooled GMM dynamic panel estimators. We also propose using a Wald test
 that can be used to assess whether pooled estimators suffer from
 heterogeneity bias. We illustrate the usefulness of grouped coefficients
 with an application to labour demand in which the coefficients are grouped
 by sub-sector. Our results suggest that the standard pooled estimates are
 substantially biased.
Journal: Applied Economics 
Pages: 4335-4348 
Issue: 40 
Volume: 47 
Year: 2015 
Month: 8 
X-DOI: 10.1080/00036846.2015.1029112 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1029112 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4335-4348




Template-Type: ReDIF-Article 1.0
Author-Name: H. W. Lampe 
Author-X-Name-First: H. W. 
Author-X-Name-Last: Lampe 
Author-Name: D. Hilgers 
Author-X-Name-First: D. 
Author-X-Name-Last: Hilgers 
Author-Name: C. Ihl 
Author-X-Name-First: C. 
Author-X-Name-Last: Ihl 
Title: Does accrual accounting improve municipalities' efficiency? Evidence from Germany 
Abstract:
 The stressed financial situation in the public sector and the continuous
 aspiration for austerity in western governments and public bodies is
 omnipresent. As one core element in the New Public Management shift,
 Germany, like many other countries, has experienced significant reforms in
 public sector accounting and reporting in the last decade. We analyse the
 effect of new accounting and budgeting regimes. We therefore analyse the
 cost efficiency of German local governments in the state of North
 Rhine-Westphalia over 3&nbsp;years using a stochastic frontier approach.
 This study presents evidence for increased efficiency amongst
 municipalities due to the adoption of accrual accounting.
Journal: Applied Economics 
Pages: 4349-4363 
Issue: 41 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1030562 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030562 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4349-4363




Template-Type: ReDIF-Article 1.0
Author-Name: F. Kropfh䵦szlig;er 
Author-X-Name-First: F. 
Author-X-Name-Last: Kropfh䵦szlig;er 
Author-Name: M. Sunder 
Author-X-Name-First: M. 
Author-X-Name-Last: Sunder 
Title: A weighty issue revisited: the dynamic effect of body weight on earnings and satisfaction in Germany 
Abstract:
 We estimate the relationship between changes in the body mass index
 (<italic>bmi</italic>) and wages or satisfaction, respectively, in a panel
 of German employees. In contrast to previous findings, our dynamic models
 indicate an inverse u-shaped association between <italic>bmi</italic> and
 wages. As the implied maximum occurs in the 'overweight' category, the
 positive trend in weight may not yet constitute a major limitation to
 productivity. Further investigation points out a stronger association
 among young workers and workers with jobs that are less protected. Work
 satisfaction of young workers is associated with <italic>bmi</italic>
 beyond the effect of earnings.
Journal: Applied Economics 
Pages: 4364-4376 
Issue: 41 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1030563 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030563 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4364-4376




Template-Type: ReDIF-Article 1.0
Author-Name: Shang Wu 
Author-X-Name-First: Shang 
Author-X-Name-Last: Wu 
Author-Name: Jacob R. Fooks 
Author-X-Name-First: Jacob R. 
Author-X-Name-Last: Fooks 
Author-Name: Kent D. Messer 
Author-X-Name-First: Kent D. 
Author-X-Name-Last: Messer 
Author-Name: Deborah Delaney 
Author-X-Name-First: Deborah 
Author-X-Name-Last: Delaney 
Title: Consumer demand for local honey 
Abstract:
 How to best target and attract niche market consumers is an important
 marketing problem for producers of specialty agricultural products. It is
 particularly an issue in the honey market where consumers increasingly
 face media messages regarding threats to honey bee health, honey
 adulteration and health benefits of locally produced honey. Using auction
 experiments, this research evaluates consumer behaviour related to
 informational messages about honey that is produced locally, domestically
 and internationally. Results from 115 adult consumers show that consumers'
 demand for honey varies significantly based on the geographic location of
 the honey's production, product packaging and the information they have
 about the product. Consumers demonstrate greater demand for locally
 produced honey, especially when provided information about negative
 aspects of internationally produced honey that include adulteration. This
 shows that such negative media attention on specialty products offers
 small producers an opportunity to increase profitability by marketing
 themselves as a specialized niche alternative.
Journal: Applied Economics 
Pages: 4377-4394 
Issue: 41 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1030564 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030564 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4377-4394




Template-Type: ReDIF-Article 1.0
Author-Name: Phuong Anh Nguyen 
Author-X-Name-First: Phuong Anh 
Author-X-Name-Last: Nguyen 
Author-Name: Michel Simioni 
Author-X-Name-First: Michel 
Author-X-Name-Last: Simioni 
Title: Productivity and efficiency of Vietnamese banking system: new evidence using F䲥-Primont index analysis 
Abstract:
 This article aims to provide a clearer view on the recent evolutions of
 the Vietnamese banking system that can be useful to public authority when
 taking restructuring decisions. This article focuses on the evolution of
 productivity of Vietnamese banks over the period 2008 to 2012, and on the
 evolution of the different components of this productivity: technical
 change, pure technical efficiency and mix and scale efficiency. The
 methodology draws from very recent developments in index theory in the
 design of multiplicative-complete economically ideal indexes, using
 F䲥-Primont productivity indexes to measure productivity. This
 methodology is applied to a balanced panel of Vietnamese banks. The
 results complement observations usually made on the recent development of
 the Vietnamese banking system. They show that the State Bank of Vietnam's
 restructuring policy cannot focus only on either the insufficient size of
 banks or a better management of these banks in terms of the mix of
 outputs. Both must be considered simultaneously, not only through bank
 mergers but also in setting management criteria in line with criteria
 defined internationally.
Journal: Applied Economics 
Pages: 4395-4407 
Issue: 41 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1030565 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030565 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4395-4407




Template-Type: ReDIF-Article 1.0
Author-Name: Rania Jammazi 
Author-X-Name-First: Rania 
Author-X-Name-Last: Jammazi 
Author-Name: Duc Khuong Nguyen 
Author-X-Name-First: Duc Khuong 
Author-X-Name-Last: Nguyen 
Title: Responses of international stock markets to oil price surges: a regime-switching perspective 
Abstract:
 We propose an enhanced regime-switching model to investigate the
 relationships between oil price surges and stock market cycles in five
 oil-dependent countries. Our model accounts for the joint effects of the
 West Texas Intermediate (WTI) and Brent oil markets and simultaneously
 captures asymmetry, volatility persistence and regime shifts contained in
 the underlying financial data. We find that stock market returns strongly
 exhibit a regime-switching behaviour, but they react differently to the
 increases in the price of oil. More precisely, the conditional volatility
 of studied stock markets during the bear market phases is found to be less
 affected by oil price surges than during the bull market phases. Whether
 the effects of oil shocks are positive or negative depends greatly on the
 degree of reliance on imported oil, the share of the cost of oil in the
 national income and the degree of improvement in energy efficiency of a
 given country. Finally, the relatively opposite effects of the WTI and
 Brent oil markets suggest the potential of substitution between them as
 well as the necessity of a diversification strategy of oil supply sources.
Journal: Applied Economics 
Pages: 4408-4422 
Issue: 41 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1030566 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030566 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4408-4422




Template-Type: ReDIF-Article 1.0
Author-Name: Jos頌uis Lima 
Author-X-Name-First: Jos頌uis 
Author-X-Name-Last: Lima 
Author-Name: Javier N&uacute;񥺠
Author-X-Name-First: Javier 
Author-X-Name-Last: N&uacute;񥺠
Title: Does self-regulation work? Experimental evidence of the reputational incentives of Self-Regulatory Organizations 
Abstract:
 Self-regulation (SR) is a common way of enforcing quality in markets (such
 as banking, financial services and several professions) and in a variety
 of public and private organizations. We provide experimental evidence of
 the reputational incentives of self-regulatory organizations (SROs) to
 publicly disclose versus cover-up fraud in an incomplete information
 environment. We find that observed behaviour is generally consistent with
 Bayesian equilibrium when subjects are informed about the relative
 likelihood of fraud detection by a 'vigilant' versus a 'lax' SRO type. In
 particular, a fraud disclosure equilibrium is supported when subjects are
 informed that the 'vigilant' SRO is more likely to detect fraud;
 otherwise, a cover-up equilibrium is supported. However, when subjects are
 not informed about the relative likelihood of fraud detection by the SRO
 types (as expected in real SR situations), no equilibrium is strongly
 supported. Our results suggest that in practice, the reputation-based
 incentives for effective SR may be inherently ambiguous and weak.
Journal: Applied Economics 
Pages: 4423-4441 
Issue: 41 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1030567 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030567 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4423-4441




Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio La Rocca 
Author-X-Name-First: Maurizio 
Author-X-Name-Last: La Rocca 
Author-Name: Raffaele Staglian&ograve; 
Author-X-Name-First: Raffaele 
Author-X-Name-Last: Staglian&ograve; 
Author-Name: Tiziana La Rocca 
Author-X-Name-First: Tiziana 
Author-X-Name-Last: La Rocca 
Author-Name: Alfio Cariola 
Author-X-Name-First: Alfio 
Author-X-Name-Last: Cariola 
Title: Investment cash flow sensitivity and financial constraint: a cluster analysis approach 
Abstract:
 This article sheds light on the mixed empirical evidence concerning
 financial constraint and investment sensitivity to cash flow. The
 literature suggests that measuring financial constraint is far from
 straightforward, and we therefore propose a cluster analysis procedure to
 identify unambiguous groups of constrained firms. We found the investment
 results to be highly sensitive to cash flow for financial constraint
 firms. Moreover, in line with previous research, our results showed that
 the traditional criteria used to identify financially constrained firms
 led to ambiguous interpretations. Overall, our results propose that the
 cluster analysis can be used to encompass the various single-criterion
 approaches, thereby providing a finer measurement of the financial
 constraint construct and deeper insight into the relationship between
 investment sensitivity to cash flow and financial constraint.
Journal: Applied Economics 
Pages: 4442-4457 
Issue: 41 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1030568 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030568 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4442-4457




Template-Type: ReDIF-Article 1.0
Author-Name: Jeng-Yan Tsai 
Author-X-Name-First: Jeng-Yan 
Author-X-Name-Last: Tsai 
Author-Name: Shi Chen 
Author-X-Name-First: Shi 
Author-X-Name-Last: Chen 
Title: How does equity capital cost affect bank performance during a financial crisis? 
Abstract:
 This article theoretically examines how equity capital cost affects return
 performance and safety of a bank and how this effect varies across a
 financial crisis comparing to a normal time when the bank manager's
 performance reveals the like of higher equity return and the dislike of
 higher equity risk. We derive two main results. First, an increase in the
 bank's equity capital cost from an increase of the interest rate of the
 Federal funds results in a reduced loan risk-taking at an increased
 optimal bank interest margin, implying better bank performance. Second, by
 ignoring the dislike, we find that the better performance is reinforced
 during a financial crisis but is reduced during a normal time. Financial
 crises and the dislike preference as such contribute a relatively low
 return and the stability of banking activities.
Journal: Applied Economics 
Pages: 4459-4474 
Issue: 42 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1030569 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030569 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4459-4474




Template-Type: ReDIF-Article 1.0
Author-Name: Horst Gischer 
Author-X-Name-First: Horst 
Author-X-Name-Last: Gischer 
Author-Name: Holger Müller 
Author-X-Name-First: Holger 
Author-X-Name-Last: Müller 
Author-Name: Toni Richter 
Author-X-Name-First: Toni 
Author-X-Name-Last: Richter 
Title: How to measure the market power of banks in the lending business accurately: a segment-based adjustment of the Lerner Index 
Abstract:
 Numerous empirical studies use the price-cost-margin-based Lerner Index
 (LI) to assess the general market power of banks. A common procedure
 within those LI applications is to approximate the market price required
 for the LI measurement as the ratio of a bank's total revenues to total
 assets. We discuss the major flaws of this aggregated procedure and
 propose an adjusted (i.e. business segment-orientated) LI approach, which
 is then applied to assess the market power of banks in the specific
 lending business at the country level. Our empirical study is based on an
 original data set containing all interest-related categories (weighted by
 the respective loan as well as deposit volumes) in the countries of the
 European Monetary Union zone (EMU) from 2003 to 2013. Our results reveal
 that the country-specific market power of banks in the lending business
 has been substantially underestimated in previous studies based on
 aggregated outputs. For example, averaged across the five most important
 economies in the EMU, we detect a calibration factor of four. Our findings
 corroborate the economic notion that the interest-bearing lending business
 is a more locally separated, and thus profitable, segment in which
 competition is attenuated.
Journal: Applied Economics 
Pages: 4475-4483 
Issue: 42 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1030570 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030570 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4475-4483




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan 
Author-X-Name-First: Paresh Kumar 
Author-X-Name-Last: Narayan 
Author-Name: Sagarika Mishra 
Author-X-Name-First: Sagarika 
Author-X-Name-Last: Mishra 
Author-Name: Seema Narayan 
Author-X-Name-First: Seema 
Author-X-Name-Last: Narayan 
Title: New empirical evidence on the bid-ask spread 
Abstract:
 In this article, we model the determinants of spread for 734 firms listed
 on the NYSE over the period 1 January 1998 to 31 December 2008. We propose
 a panel data model of the determinants of spread. There are four main
 messages emerging from our work. We find a statistically significant
 effect of volume on spread inconsistent with the work of Johnson (2008).
 On price, we find mixed results, consistent with the literature. On the
 effect of price volatility on spread, our results are completely the
 opposite of the cross-sectional literature but sides with the relatively
 recent work of Chordia <italic>et al.</italic> (2001). We allow for
 persistence of spread as a determinant of spread and find significant
 evidence of spread persistence across all 16 sectors. Finally, we examine
 size effects and find statistically strong evidence of size effects based
 on the relationship between price and spread, persistence and spread, and
 volatility and spread.
Journal: Applied Economics 
Pages: 4484-4500 
Issue: 42 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1031870 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031870 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4484-4500




Template-Type: ReDIF-Article 1.0
Author-Name: Yensen Ni 
Author-X-Name-First: Yensen 
Author-X-Name-Last: Ni 
Author-Name: Paoyu Huang 
Author-X-Name-First: Paoyu 
Author-X-Name-Last: Huang 
Title: Convertible bonds issued in the bear market period: evidence from Taiwan 
Abstract:
 We argue that the behaviour of enterprises might be modified or even
 changed completely after black swan events occur. We explore why high-tech
 firms preferred to issue convertible bonds in 2001-2003, the bear market
 period after the tech bubble in Taiwan. We show that firms issuing
 convertible bonds are those with low directors' holding ratio and high
 debt ratio. Results also reveal that corporate governance was worse in the
 firms that issued convertible bonds, as revealed by the finding that the
 directors' holding ratio of these issuing firms declined considerably.
 This finding also implies that corporate governance issues become more
 serious after black swan events.
Journal: Applied Economics 
Pages: 4501-4510 
Issue: 42 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1031871 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031871 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4501-4510




Template-Type: ReDIF-Article 1.0
Author-Name: James Peery Cover 
Author-X-Name-First: James Peery 
Author-X-Name-Last: Cover 
Author-Name: Hye-Jin Lee 
Author-X-Name-First: Hye-Jin 
Author-X-Name-Last: Lee 
Title: Do market prices aggregate information about macroeconomic uncertainty (or risk)? 
Abstract:
 This article examines several economic variables that represent either
 confidence in future economic conditions or the degree of risk/uncertainty
 about future conditions in order to determine which contain more
 information about future employment and output. Some of these variables
 are prices, while others are from surveys. Causality tests, historical
 decompositions within a VAR and out-of-sample forecasts are among the
 tools used. This article concludes that monthly stock returns contain much
 more information about future economic conditions than the other
 variables. The spread between Moody's BAA and AAA bonds, the spread
 between the constant maturity 10-year government bond and the federal
 funds rate, as well as uncertainty in future economic conditions as
 measured by the Federal Reserve Bank of Philadelphia's Business Outlook
 Survey also provide information about future economic conditions. Notably,
 this article finds that monthly stock returns contain more information
 about future economic conditions than does the <italic>vix</italic> and
 that variables based on market prices provide more information than survey
 data. This result provides some support for the notion that market prices
 aggregate information.
Journal: Applied Economics 
Pages: 4511-4534 
Issue: 42 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1031872 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031872 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4511-4534




Template-Type: ReDIF-Article 1.0
Author-Name: Wencong Lu 
Author-X-Name-First: Wencong 
Author-X-Name-Last: Lu 
Author-Name: Jianfeng Huang 
Author-X-Name-First: Jianfeng 
Author-X-Name-Last: Huang 
Author-Name: Oliver Musshoff 
Author-X-Name-First: Oliver 
Author-X-Name-Last: Musshoff 
Title: Climate threshold, financial hoarding and economic growth 
Abstract:
 We use an iterative finite difference method to establish theoretical
 models that reflect the relationships among climate threshold, financial
 hoarding and economic growth. We build a simultaneous equations model to
 conduct an empirical analysis based on China's statistical data from 1979
 to 2012. Our study yields the following results: China's climate threshold
 has shown a zigzag-shaped rising trend since 1979; the main reasons for
 the rapid expansion of financial hoarding were high savings rate, savings
 leakage, higher marginal efficiency of financial hoarding compared to
 capital efficiency or higher internal creativity of the financial sector;
 there were positive cumulative effects between financial hoarding and
 economic growth, which were significantly inhibited by climate threshold;
 the climate threshold had discrepant influences on different industries.
 To achieve a balanced economy, more money should be invested in the real
 sector to appropriately reduce the rate of savings leakage; the financial
 sector should move from scale expansion to service efficiency improvements
 to increase its marginal contribution to the economy and to enhance
 capital efficiency; the real sector should improve technological
 innovation and speed up the adaptive adjustment in climate-sensitive
 industries to move from economic growth to advanced development.
Journal: Applied Economics 
Pages: 4535-4548 
Issue: 42 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1031873 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031873 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4535-4548




Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner 
Author-X-Name-First: Richhild 
Author-X-Name-Last: Moessner 
Title: International spillovers from US forward guidance to equity markets 
Abstract:
 We quantify the international spillovers of explicit Federal Open Market
 Committee (FOMC) policy rate guidance used as an unconventional monetary
 policy tool at the zero lower bound of the policy rate on international
 equity markets, considering equity indices of both advanced and emerging
 economies. We find that stimulatory explicit FOMC policy rate guidance
 announcements at the zero lower bound led to higher equity prices in a
 number of advanced and emerging economies. Moreover, we find that equity
 indices of economies with lower sovereign ratings rose by more, consistent
 with the risk-taking channel of monetary policy.
Journal: Applied Economics 
Pages: 4549-4560 
Issue: 42 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1031874 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031874 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4549-4560




Template-Type: ReDIF-Article 1.0
Author-Name: Kavita Sirichand 
Author-X-Name-First: Kavita 
Author-X-Name-Last: Sirichand 
Author-Name: Simeon Coleman 
Author-X-Name-First: Simeon 
Author-X-Name-Last: Coleman 
Title: International yield curve comovements: impact of the recent financial crisis 
Abstract:
 Empirical evidence on international yield comovement is sparse and lacks
 consensus. Employing a dynamic correlation approach, we show that during
 the recent global financial crisis, euro area yields have ceased to comove
 with the yields of the other international markets - Canada, UK and US.
 Some implications of our results are discussed.
Journal: Applied Economics 
Pages: 4561-4573 
Issue: 43 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1031875 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031875 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4561-4573




Template-Type: ReDIF-Article 1.0
Author-Name: James S. Fackler 
Author-X-Name-First: James S. 
Author-X-Name-Last: Fackler 
Author-Name: W. Douglas McMillin 
Author-X-Name-First: W. Douglas 
Author-X-Name-Last: McMillin 
Title: Bernanke versus Taylor: a post mortem 
Abstract:
 Our analysis sheds light on the issue of whether the monetary policy
 contributed to the recent housing boom and bust. We have estimated and
 analysed a model that allows a comparison between the actual policy and
 several alternative Taylor rules. When the Taylor rule path was computed
 using revised data and the deflator for the GDP, we found a notable impact
 on key housing market variables, supporting Taylor's critique of the Fed
 policy. However, the bulk of our evidence suggests that the policy as it
 would have been conducted under our real-time Taylor rules would not have
 had any significant impact on the housing market variables. This
 conclusion is robust with regard to the price index used as well as the
 relative weights used on the inflation and output gaps.
Journal: Applied Economics 
Pages: 4574-4589 
Issue: 43 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1031876 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031876 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4574-4589




Template-Type: ReDIF-Article 1.0
Author-Name: Elisabetta Magnani 
Author-X-Name-First: Elisabetta 
Author-X-Name-Last: Magnani 
Author-Name: Rong Zhu 
Author-X-Name-First: Rong 
Author-X-Name-Last: Zhu 
Title: Social mobility and inequality in urban China: understanding the role of intergenerational transmission of education 
Abstract:
 China's rapid economic growth since the late 1980s has been accompanied by
 great economic and social transformations, which have resulted in a sharp
 increase in income inequality. This article contributes to the literature
 of social mobility in China by examining the impact of parental education
 on the education of their children. Using the 1990 and 2000 Chinese
 Population Censuses, we employ nonparametric estimation strategies to
 provide a systematic investigation of intergenerational transmission of
 education in urban China. We find evidence of increasing parents-children
 educational correlations. Our results raise concerns regarding economic
 inequality in urban China as high intergenerational persistence of
 education is expected to be a barrier to equal opportunities in children's
 education attainments and their future labour market outcomes.
Journal: Applied Economics 
Pages: 4590-4606 
Issue: 43 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1031877 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031877 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4590-4606




Template-Type: ReDIF-Article 1.0
Author-Name: Din 祲 Afat 
Author-X-Name-First: Din 祲 
Author-X-Name-Last: Afat 
Author-Name: Marta G󭥺-Puig 
Author-X-Name-First: Marta 
Author-X-Name-Last: G󭥺-Puig 
Author-Name: Sim󮠓osvilla-Rivero 
Author-X-Name-First: Sim󮠍
Author-X-Name-Last: Sosvilla-Rivero 
Title: The failure of the monetary model of exchange rate determination 
Abstract:
 In this article, we test three popular versions of the monetary model
 (flexible price, forward-looking and real interest differential models)
 for the OECD member countries by applying Johansen cointegration
 technique. Based on country-by-country analysis, we conclude that monetary
 models do not provide the expected results. We reveal several shortcomings
 of the models and examine the building blocks of the fundamental version.
 Although researchers always blame the deviations from purchasing power
 parity as the reason for the failure of the monetary model, our analysis
 indicates that invalidity of Keynesian money demand function is also
 responsible for unfavourable results.
Journal: Applied Economics 
Pages: 4607-4629 
Issue: 43 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1031878 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031878 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4607-4629




Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Chien Chang 
Author-X-Name-First: Chia-Chien 
Author-X-Name-Last: Chang 
Author-Name: Te-Chung Hu 
Author-X-Name-First: Te-Chung 
Author-X-Name-Last: Hu 
Author-Name: Chiu-Fen Kao 
Author-X-Name-First: Chiu-Fen 
Author-X-Name-Last: Kao 
Author-Name: Ya-Chi Chang 
Author-X-Name-First: Ya-Chi 
Author-X-Name-Last: Chang 
Title: Early warning signals using AVaRs of infinitely divisible GARCH models -- evidence from stock index markets 
Abstract:
 Classical time series models have failed to properly assess the risks that
 are associated with large adverse stock price behaviour. This article
 contributes to autoregressive moving average model-GARCH (ARMA-GARCH)
 models with standard infinitely divisible innovations and assesses the
 performance of these models by comparing them with other time series
 models that have normal innovation. We discuss the limitations of value at
 risk (VaR) and aim to develop early warning signal models using average
 value at risk (AVaRs) based on the ARMA-GARCH model with standard
 infinitely divisible innovations. Empirical results for the daily Dow
 Jones Industrial Average Index, the England Financial Times Stock Exchange
 100 Index and the Japan Nikkei 225 Index reveal that estimating AVaRs for
 the ARMA-GARCH model with standard infinitely divisible innovations offers
 an improvement over prevailing models for evaluating stock market risk
 exposure during periods of distress in financial markets and provides a
 suitable early warning signal in both extreme events and highly volatile
 markets.
Journal: Applied Economics 
Pages: 4630-4652 
Issue: 43 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1032209 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1032209 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4630-4652




Template-Type: ReDIF-Article 1.0
Author-Name: Meng-Hsi Chou 
Author-X-Name-First: Meng-Hsi 
Author-X-Name-Last: Chou 
Author-Name: Gee San 
Author-X-Name-First: Gee 
Author-X-Name-Last: San 
Title: Labour quality in Taiwan: measurement and contribution to economic growth 
Abstract:
 This article compiles labour input indices that capture both employment
 changes and quality improvement of labour in Taiwan, from 1994 to 2011. Up
 to 77.19% of average annual labour input growth is from quality
 improvement. Further decomposition reveals that the most important source
 of growth is educational attainment, followed by age structure. Moreover,
 we find that Taiwan's average annual GDP growth rate does not result from
 capital investment but from the contribution of a stable labour input to
 economic growth. Taiwan is a newly industrialized country, but because of
 the diminishing returns to capital, the catch-up effect has been slower
 than hoped. Additional capital investment has a relatively small effect on
 productivity, and the main source of the continuous economic growth rate
 is from labour quality, especially from highly skilled human capital.
 Making good use of these human resources creates a stable source of
 sustained economic growth.
Journal: Applied Economics 
Pages: 4653-4669 
Issue: 43 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1034837 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034837 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4653-4669




Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Yu Hsieh 
Author-X-Name-First: Tsung-Yu 
Author-X-Name-Last: Hsieh 
Title: Information disclosure and price manipulation during the pre-closing session: evidence from an order-driven market 
Abstract:
 On 20 February 2012, the Taiwan Stock Exchange Corporation launched an
 order-matching simulation mechanism for five minutes during the start of
 the pre-closing session, in order to increase information disclosure
 during this period (13:25-13:30). Pre-closing information disclosure
 significantly reduces both trading costs and closing-price volatility, as
 well as price manipulation. The decrease in price manipulation found in
 this work is due to pre-closing information disclosure, not the behaviour
 of investors shifting to an earlier time. Further, if a stock price rises
 or falls by more than 3.5% in the simulation in the last minute during the
 closing session, trading of the stock will be suspended for two minutes
 from 13:31 to reduce volatility. However, this trading mechanism
 (suspended-closing) does not seem to have achieved the intended goals of
 the authorities, as it has not been able to significantly reduce
 closing-price volatility and price manipulation.
Journal: Applied Economics 
Pages: 4670-4684 
Issue: 43 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1051656 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051656 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4670-4684




Template-Type: ReDIF-Article 1.0
Author-Name: Alejandro C. Garc𫑃intado 
Author-X-Name-First: Alejandro C. 
Author-X-Name-Last: Garc𫑃intado 
Author-Name: Diego Romero-Ávila 
Author-X-Name-First: Diego 
Author-X-Name-Last: Romero-Ávila 
Author-Name: Carlos Usabiaga 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Usabiaga 
Title: A PANIC analysis on regional and sectoral inflation: the Spanish case 
Abstract:
 This article studies the stochastic properties of several inflation rates
 for the Spanish economy using the consumer price index (CPI) for the 17
 regions and 12 groups of goods and services, and the producer price index
 (PPI) for 26 industrial sectors. To this end, we employ the panel analysis
 of nonstationarity in idiosyncratic and common components (PANIC) approach
 proposed by Bai and Ng (2004, 2010). This methodology enables us to
 decompose the observed inflation rate series into a common and an
 idiosyncratic component, thus allowing us to identify the exact source of
 nonstationarity. Our analysis provides strong evidence of the presence of
 a common stochastic trend driving the observed series forming the panel of
 CPI-based inflation rates for the regions. This, coupled with the presence
 of a jointly stationary idiosyncratic component, implies the existence of
 pairwise cointegration across the regional CPI-based inflation rates,
 which show a clear pattern of convergence over time. This gives an
 indication of increased geographical homogeneity in consumption patterns.
 The evidence for the panels of CPI-based inflation of groups of goods and
 services and PPI-based inflation of industrial sectors indicates the
 existence of four independent common stochastic trends. This, combined
 with jointly stationary idiosyncratic series, provides much weaker
 evidence of cross-cointegration for these two panels.
Journal: Applied Economics 
Pages: 4685-4713 
Issue: 44 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1034838 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4685-4713




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Maderitsch 
Author-X-Name-First: Robert 
Author-X-Name-Last: Maderitsch 
Title: Spillovers from the USA to stock markets in Asia: a quantile regression approach 
Abstract:
 This article analyses return spillovers from the USA to stock markets in
 Asia by means of quantile regressions. Traditional studies consider
 spillovers as effects of the conditional means of foreign returns onto the
 conditional means of chronologically succeeding domestic markets' returns.
 We, by contrast, study the full range of quantiles of the conditional
 distribution of the domestic markets' returns. This enables us to document
 the detailed structure of spillovers across return quantiles. Generally,
 we find spillovers from the USA to Asia to be negative. Specifically,
 however, we reveal an asymmetric structure of spillovers with an
 increasing negative magnitude from lower to upper return quantiles.
 Theoretically, this pattern is consistent with an asymmetric overreaction
 of traders in Asia to news from the US market. Extensions from the
 baseline model further suggest the presence of contagion throughout the
 financial crisis of 2007-2008 as well as of calm-down effects over
 weekends.
Journal: Applied Economics 
Pages: 4714-4727 
Issue: 44 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1034839 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034839 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4714-4727




Template-Type: ReDIF-Article 1.0
Author-Name: O. Poldin 
Author-X-Name-First: O. 
Author-X-Name-Last: Poldin 
Author-Name: D. Valeeva 
Author-X-Name-First: D. 
Author-X-Name-Last: Valeeva 
Author-Name: M. Yudkevich 
Author-X-Name-First: M. 
Author-X-Name-Last: Yudkevich 
Title: Choice of specialization: do peers matter? 
Abstract:
 Social influence is an important factor in learning and decision-making.
 We estimate peer influence on student choice of specialization using data
 on undergraduate students of a Russian university. Information about
 individual social ties has been gathered from a questionnaire survey. We
 show that specialization choice is significantly influenced by friends as
 well as by study partners. The strongest effect is produced by friends who
 are study partners and those who have similar academic achievements.
 Reciprocal friendship ties have a stronger influence on the choice than
 nonreciprocal ones. Also, the decision is affected by classmates with
 similar academic achievement. The results allow us to better understand
 the mechanisms of peer effects in the specialization choice.
Journal: Applied Economics 
Pages: 4728-4740 
Issue: 44 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1034840 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034840 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4728-4740




Template-Type: ReDIF-Article 1.0
Author-Name: C. L󰥺-Andi󮠍
Author-X-Name-First: C. 
Author-X-Name-Last: L󰥺-Andi󮠍
Author-Name: A. Iglesias-Casal 
Author-X-Name-First: A. 
Author-X-Name-Last: Iglesias-Casal 
Author-Name: M. C. L󰥺-Penabad 
Author-X-Name-First: M. C. 
Author-X-Name-Last: L󰥺-Penabad 
Author-Name: J. M. Maside-Sanfiz 
Author-X-Name-First: J. M. 
Author-X-Name-Last: Maside-Sanfiz 
Title: The solvency of financial institutions in Spain: lessons from securitization 
Abstract:
 On analysing a sample of Spanish banks, we find that securitization has a
 slightly negative impact on the soundness of the issuing entity. An
 unbalanced dynamic panel model was estimated using the forward orthogonal
 deviations GMM method and used to analyse 537 traditional securitizations
 issued by 61 banks between 1998 and 2012. The analysis revealed that the
 entities' soundness became weaker immediately prior to the crisis, but
 this effect became insignificant after 2007. Securitization has
 facilitated a process of regulatory capital arbitrage leading to lower
 capital requirements while, at the same time, giving rise to a slight
 worsening of the quality of the originators' portfolios. It was found that
 profitability, liquidity and inflation positively affect solvency, while
 changes in short-term interest rates affect it negatively.
Journal: Applied Economics 
Pages: 4741-4753 
Issue: 44 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1034841 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034841 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4741-4753




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Omer 
Author-X-Name-First: Muhammad 
Author-X-Name-Last: Omer 
Author-Name: Jakob De Haan 
Author-X-Name-First: Jakob 
Author-X-Name-Last: De Haan 
Author-Name: Bert Scholtens 
Author-X-Name-First: Bert 
Author-X-Name-Last: Scholtens 
Title: An empirical analysis of excess interbank liquidity: a case study of Pakistan 
Abstract:
 We investigate the drivers of excess interbank liquidity in Pakistan,
 using the Autoregressive Distributed Lag approach on weekly data for
 December 2005 to July 2011. We find that the financing of the government
 budget deficit by the central bank and nonbanks leads to persistence in
 excess liquidity. Moreover, we identify a structural shift in the
 interbank market in June 2008. Before June 2008, low credit demand was
 driving the excess liquidity holdings by banks. After June 2008, banks'
 precautionary investments in risk-free securities drive excess liquidity
 holdings. Monetary policy is less effective if banks hold excess liquidity
 for precautionary reasons.
Journal: Applied Economics 
Pages: 4754-4776 
Issue: 44 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2015.1034842 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034842 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4754-4776




Template-Type: ReDIF-Article 1.0
Author-Name: Vikash Ramiah 
Author-X-Name-First: Vikash 
Author-X-Name-Last: Ramiah 
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Author-Name: Huy Nguyen Anh Pham 
Author-X-Name-First: Huy Nguyen Anh 
Author-X-Name-Last: Pham 
Author-Name: Anthony Scundi 
Author-X-Name-First: Anthony 
Author-X-Name-Last: Scundi 
Author-Name: Wai Han Teoh 
Author-X-Name-First: Wai Han 
Author-X-Name-Last: Teoh 
Title: The effects of multilateral trading systems on risk and return in equity markets 
Abstract:
 The event study methodology of Brown and Warner (1985) is adopted and
 augmented to evaluate the effect of the launch of multilateral trading
 systems on risk and return in equity markets. The methodology is
 supplemented with various techniques, such as the nonparametric ranking
 test and kernel regression, to find out if announcements about the
 introduction of Chi-X Australia generated abnormal returns (ARs). Asset
 pricing models are fitted with interaction variables, while GARCH,
 threshold ARCH (TARCH), exponential GARCH (EGARCH) and power-ARCH (PARCH)
 are used to determine changes in systematic risk. We find evidence in
 favour of Fisher's separation theorem and detect a new market anomaly,
 which we call the 'Fisher market anomaly'. Our results show that Chi-X
 system testings affect ARs. Consistent with the adaptive expectations
 theory, we confirm that the first announcement about the launch of Chi-X
 affected systematic risk the most. In addition, we identify industry and
 firm effects in risk analysis.
Journal: Applied Economics 
Pages: 4777-4792 
Issue: 44 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1034843 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034843 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4777-4792




Template-Type: ReDIF-Article 1.0
Author-Name: C. P. Barros 
Author-X-Name-First: C. P. 
Author-X-Name-Last: Barros 
Author-Name: Luis A. Gil-Alana 
Author-X-Name-First: Luis A. 
Author-X-Name-Last: Gil-Alana 
Title: Investment and saving in Angola and the Feldstein-Horioka puzzle 
Abstract:
 This article analyses the relationship between investment and savings for
 Angola using the Feldstein-Horioka puzzle, with monthly data from January
 2000 to December 2013. Integer and fractional integration and
 cointegration techniques are employed to investigate the relationship
 between investment and savings. Several regression specifications are
 employed, concluding that the Feldstein-Horioka puzzle is not validated
 for the Angolan economy. Policy implications are derived.
Journal: Applied Economics 
Pages: 4793-4800 
Issue: 44 
Volume: 47 
Year: 2015 
Month: 3 
X-DOI: 10.1080/00036846.2015.1034844 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034844 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4793-4800




Template-Type: ReDIF-Article 1.0
Author-Name: A. D. Hall 
Author-X-Name-First: A. D. 
Author-X-Name-Last: Hall 
Author-Name: S. E. Satchell 
Author-X-Name-First: S. E. 
Author-X-Name-Last: Satchell 
Author-Name: P. J. Spence 
Author-X-Name-First: P. J. 
Author-X-Name-Last: Spence 
Title: Evaluating the impact of inequality constraints and parameter uncertainty on optimal portfolio choice 
Abstract:
 We present new analytical results for the impact of portfolio weight
 constraints on an investor's optimal portfolio when parameter uncertainty
 is taken into account. While it is well known that parameter uncertainty
 and imposing weight constraints results in reduced certainty equivalent
 returns, in the general case, there are no analytical results. In a
 special case, commonly used in the funds management literature, we derive
 analytical expression for the certainty equivalent loss that does not
 depend on the risk aversion parameter. We illustrate our theoretical
 results using hedge fund data, from the perspective of a fund-of-fund
 manager. Our contribution is to formalize the framework to investigate
 this problem, as well as providing tractable analytical solutions that can
 be implemented using either simulated or asset manager returns.
Journal: Applied Economics 
Pages: 4801-4813 
Issue: 45 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1034845 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034845 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4801-4813




Template-Type: ReDIF-Article 1.0
Author-Name: Jos頄aniel Buend𨁁zor󸀍
Author-X-Name-First: Jos頄aniel 
Author-X-Name-Last: Buend𨁁zor󸀍
Author-Name: Mar𨁤el Mar Sᮣhez de la Vega 
Author-X-Name-First: Mar𨁤el Mar 
Author-X-Name-Last: Sᮣhez de la Vega 
Title: Human capital effects on labour productivity in EU regions 
Abstract:
 Recent years have seen a wealth of articles on spatial effects in
 empirical growth specifications. Endogenous growth models, together with
 the arguments of the new economic geography, have led to spatial
 dependence being identified with the existence of externalities which
 cross regional borders. This article continues in this line of research
 and offers new empirical evidence on the contribution of human capital and
 agglomeration economies to the differences in productivity in European
 Union regions. The article uses the spatial Durbin model with different
 weight matrices to explain the relation between human capital variables
 and labour productivity, with the advantage that it allows the effects of
 spatial externalities associated to human capital and agglomeration
 economies to be quantified.
Journal: Applied Economics 
Pages: 4814-4828 
Issue: 45 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1037434 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037434 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4814-4828




Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Munasib 
Author-X-Name-First: Abdul 
Author-X-Name-Last: Munasib 
Author-Name: Xi Tian 
Author-X-Name-First: Xi 
Author-X-Name-Last: Tian 
Title: Impact of institutions on social network formation: communist party membership and social network investment in China 
Abstract:
 Using the 2003 wave of China General Social Survey (2003CGSS), we study
 the influence of the communist party on individual's social networks in
 urban China and, thereby, present a case of socio-political institutions
 being an important ingredient in social network formation. We adopt a
 counterfactual framework and estimate the effect of communist party
 membership on social network investment as an average treatment effect. We
 find the treatment to be significant.
Journal: Applied Economics 
Pages: 4829-4846 
Issue: 45 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1037435 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037435 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4829-4846




Template-Type: ReDIF-Article 1.0
Author-Name: Ajay Kumar Mishra 
Author-X-Name-First: Ajay Kumar 
Author-X-Name-Last: Mishra 
Author-Name: Thomas H. McInish 
Author-X-Name-First: Thomas H. 
Author-X-Name-Last: McInish 
Author-Name: Trilochan Tripathy 
Author-X-Name-First: Trilochan 
Author-X-Name-Last: Tripathy 
Title: Price movement and trade size on the National Stock Exchange of India 
Abstract:
 Using data for the National Stock Exchange of India, we examine three
 hypotheses about which trades move prices. The Stealth Trading Hypothesis
 proposes that cumulative price changes (CPCs) are concentrated in
 particular trade sizes due to the strategic trading of informed traders.
 We find that depending on market conditions, from 60% to 80% of the CPC is
 concentrated in small trade sizes, with almost all of the remaining price
 change concentrated in medium trade sizes. These results support the
 Stealth Trading Hypothesis.
Journal: Applied Economics 
Pages: 4847-4854 
Issue: 45 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1037436 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037436 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4847-4854




Template-Type: ReDIF-Article 1.0
Author-Name: Cheng Yuan 
Author-X-Name-First: Cheng 
Author-X-Name-Last: Yuan 
Author-Name: Yu Jiang 
Author-X-Name-First: Yu 
Author-X-Name-Last: Jiang 
Title: Factors affecting the demand for insurance in China 
Abstract:
 China, the largest developing country in the world, has achieved rapid
 development of insurance market since the reform and opening up, and the
 demand for insurance has significantly increased in recent years. Using
 the provincial data between 2000 and 2012, this article attempts to
 examine the factors that affect the demand for overall insurance, life
 insurance and nonlife insurance in China. Empirical results indicate that
 level of income, development of insurance market and level of
 marketization are the common factors; level of education, development of
 social security pension, children dependency ratio and elderly dependency
 ratio mainly affect the demand for life insurance; and inflation mainly
 affects the demand for nonlife insurance. Furthermore, we particularly
 investigate the regional differences in the effects of affecting factors
 between Eastern China, Central China and Western China.
Journal: Applied Economics 
Pages: 4855-4867 
Issue: 45 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1037437 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037437 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4855-4867




Template-Type: ReDIF-Article 1.0
Author-Name: Aurora Garc𫑇allego 
Author-X-Name-First: Aurora 
Author-X-Name-Last: Garc𫑇allego 
Author-Name: Nikolaos Georgantz񈀍
Author-X-Name-First: Nikolaos 
Author-X-Name-Last: Georgantz񈀍
Author-Name: Joan Mart󻑍ontaner 
Author-X-Name-First: Joan 
Author-X-Name-Last: Mart󻑍ontaner 
Author-Name: Teodosio P鲥z-Amaral 
Author-X-Name-First: Teodosio 
Author-X-Name-Last: P鲥z-Amaral 
Title: (How) Do research and administrative duties affect university professors' teaching? 
Abstract:
 We analyse the interaction between university professors' teaching quality
 and their research and administrative activities. Our sample is a
 high-quality individual panel data set from a medium-size public Spanish
 university that allows us to avoid several types of biases frequently
 encountered in the literature. Although researchers teach roughly 20% more
 than nonresearchers, their teaching quality is also 20% higher.
 Instructors with no research are 5 times more likely than the rest to be
 among the worst teachers. Over much of the relevant range, we find a
 nonlinear and positive relationship between research output and teaching
 quantity on teaching quality. Our conclusions may be useful for
 decision-makers in universities and governments.
Journal: Applied Economics 
Pages: 4868-4883 
Issue: 45 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1037438 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037438 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4868-4883




Template-Type: ReDIF-Article 1.0
Author-Name: Alex YiHou Huang 
Author-X-Name-First: Alex YiHou 
Author-X-Name-Last: Huang 
Title: Value at risk estimation by threshold stochastic volatility model 
Abstract:
 This article proposes a threshold stochastic volatility model that
 generates volatility forecasts specifically designed for value at risk
 (VaR) estimation. The method incorporates extreme downside shocks by
 modelling left-tail returns separately from other returns. Left-tail
 returns are generated with a <italic>t</italic>-distributional process
 based on the historically observed conditional excess kurtosis. This
 specification allows VaR estimates to be generated with extreme downside
 impacts, yet remains empirically widely applicable. This article applies
 the model to daily returns of seven major stock indices over a 22-year
 period and compares its forecasts to those of several other forecasting
 methods. Based on back-testing outcomes and likelihood ratio tests, the
 new model provides reliable estimates and outperforms others.
Journal: Applied Economics 
Pages: 4884-4900 
Issue: 45 
Volume: 47 
Year: 2015 
Month: 9 
X-DOI: 10.1080/00036846.2015.1037439 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037439 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4884-4900




Template-Type: ReDIF-Article 1.0
Author-Name:  Gil-Alana 
Author-X-Name-First:  
Author-X-Name-Last: Gil-Alana 
Author-Name: Andrea Mervar 
Author-X-Name-First: Andrea 
Author-X-Name-Last: Mervar 
Author-Name:  Payne 
Author-X-Name-First:  
Author-X-Name-Last: Payne 
Title: Measuring persistence in Croatian tourism: evidence from the Adriatic region 
Abstract:
 This study examines the degree of persistence in foreign tourist arrivals
 and overnight stays for seven Croatian coastal counties over the period
 January 1998 to December 2013 using fractional integration techniques. Our
 findings reveal that the respective regional tourism indicators exhibit
 seasonal unit roots which require seasonal first differences to render the
 respective time series stationary. With respect to the long-run evolution
 of the respective time series, both the parametric and semi-parametric
 fractional integration approaches show the degree of persistence is
 greater than zero, but significantly less than one for the majority of the
 coastal counties. Impulse response analysis reveals indeed shocks to the
 deseasonalized time series, either foreign tourist arrivals or foreign
 tourist overnight stays, appear short-lived with the exception of Istria
 and Primorje-Gorski kotar counties. Policy implications of the results are
 also discussed.
Journal: Applied Economics 
Pages: 4901-4917 
Issue: 46 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1037440 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037440 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4901-4917




Template-Type: ReDIF-Article 1.0
Author-Name:  Faustino 
Author-X-Name-First:  
Author-X-Name-Last: Faustino 
Author-Name:  Matos 
Author-X-Name-First:  
Author-X-Name-Last: Matos 
Title: Exports, productivity and innovation: new firm level empirical evidence 
Abstract:
 This article examines the determinants of Portuguese exports, applying
 data from 277 manufacturing firms for the period 2006-2010. In 2010, these
 firms accounted for about 47% of total Portugal's exports. Both the static
 and dynamic results of the estimated models confirm the positive influence
 of productivity on variations in exports. The dynamic estimations also
 suggest that exports in the previous period hold a positive effect on
 contemporaneous exports, confirming the Roberts and Tybout (1997) sunk
 cost hypothesis for exports. In the dynamic analysis, the labour costs and
 the size of the firm do not have a statistically significant effect on
 Portuguese exports with the findings also pointing to increased
 expenditure on research and development (R&D) generating no statistically
 significant effect on exports. The lagged R&D expenditure was also
 insignificant in explaining the change of Portuguese exports. Thus, these
 results suggest that applying a product or process innovation measure
 returns better results than indirect measures such as R&D expenditure.
Journal: Applied Economics 
Pages: 4918-4933 
Issue: 46 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1039700 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039700 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4918-4933




Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh 
Author-X-Name-First: Tarlok 
Author-X-Name-Last: Singh 
Title: Sustainability of current account deficits in India: an intertemporal perspective 
Abstract:
 This study examines the sustainability of current account deficits (CADs)
 and the validity of intertemporal budget constraint (IBC) in India. The
 long-run model is estimated on annual data for the period 1950-1951 to
 2009-2010. The optimal single-equation and maximum-likelihood (ML) system
 estimates of the model provide a consistent support for the long-run
 relationship between imports and exports. The OLSGH estimates provide no
 support and that ML system estimates a consistent support for
 cointegration in both the models estimated with one and two structural
 breaks in level. The new cointegration breakdown tests generally suggest
 that the cointegration prevails from 1951 to 2010. The evidence supporting
 the cointegration between imports and exports overwhelms the evidence
 providing a mixed or no support for cointegration. The estimates of slope
 parameter above zero and the dominant support for cointegration between
 imports and exports vindicate the validity of IBC and the sustainability
 of CADs. The short-term management strategies need to be accompanied by
 long-term improvements in productivity to reduce inflation, lever up the
 competitiveness of exports and ensure the sustainability of the external
 value of domestic currency.
Journal: Applied Economics 
Pages: 4934-4951 
Issue: 46 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1039701 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039701 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4934-4951




Template-Type: ReDIF-Article 1.0
Author-Name: Vassilios Babalos 
Author-X-Name-First: Vassilios 
Author-X-Name-Last: Babalos 
Author-Name: Stavros Stavroyiannis 
Author-X-Name-First: Stavros 
Author-X-Name-Last: Stavroyiannis 
Title: Herding, anti-herding behaviour in metal commodities futures: a novel portfolio-based approach 
Abstract:
 The purpose of this article is twofold. Motivated by the heated debate on
 the financialization of commodities, we examine the existence of herding
 behaviour in metal commodities futures. In order to identify any
 time-dependent properties reflected in time-varying parameters, we employ
 the overlapping rolling window regression technique. The empirical
 evidence confirms a time-varying anti-herding behaviour before the global
 financial crisis and the absence of herding or anti-herding behaviour
 during the crisis. Next we attempt to formally establish the link between
 the documented anti-herding behaviour and portfolio management with the
 use of dynamic conditional correlations via the DCC-GARCH family
 multivariate modelling. After specifying the correlations, an in-sample
 recursive dynamic Markowitz portfolio is constructed and monitored. By
 doing so, we attribute the anti-herding behaviour to different portfolio
 positioning and rebalancing. On the other hand, in the absence of herding
 or anti-herding behaviour, we document a shift in the correlations and
 covariances of the commodity futures especially during the crisis,
 resulting in a decrease of the portfolio weights together with a
 substantial cash flow towards the risk-free asset.
Journal: Applied Economics 
Pages: 4952-4966 
Issue: 46 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1039702 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039702 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4952-4966




Template-Type: ReDIF-Article 1.0
Author-Name:  Weng 
Author-X-Name-First:  
Author-X-Name-Last: Weng 
Author-Name:  Woo 
Author-X-Name-First:  
Author-X-Name-Last: Woo 
Author-Name:  Cheng 
Author-X-Name-First:  
Author-X-Name-Last: Cheng 
Author-Name: T. Ho 
Author-X-Name-First: T. 
Author-X-Name-Last: Ho 
Author-Name: I. Horowitz 
Author-X-Name-First: I. 
Author-X-Name-Last: Horowitz 
Title: Public trust and corruption perception: disaster relief 
Abstract:
 Public trust in government and nongovernment organizations is essential to
 the public's willingness to donate and to support those organizations. We
 measure public trust in disaster aid using people's perception of these
 organizations' effectiveness in delivering aid relief to the victims of
 two recent major earthquakes in China. Based on the survey data collected
 in 2013 from about 2100 residents in Hong Kong, we document the
 vulnerability of these residents' trust perceptions in aid delivery. We
 find that the sharp decline in trust perception is highly negatively
 correlated with their perception of corruption of local governments in
 China.
Journal: Applied Economics 
Pages: 4967-4981 
Issue: 46 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1039703 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039703 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4967-4981




Template-Type: ReDIF-Article 1.0
Author-Name:  Alam 
Author-X-Name-First:  
Author-X-Name-Last: Alam 
Author-Name: Shahina Amin 
Author-X-Name-First: Shahina 
Author-X-Name-Last: Amin 
Author-Name:  Rives 
Author-X-Name-First:  
Author-X-Name-Last: Rives 
Title: Occupational choices of working children in Bangladesh 
Abstract:
 The article looks into the determinants of occupational choices of working
 children in Bangladesh. Using data from 6668 Bangladeshi working children
 aged 5 through 14, the article estimates several binary and multinomial
 logit regressions, separately for boys and girls. The article confirms
 that most children work in the informal sector where formal sector's
 jurisdiction and regulations are absent. Specifically, the article finds
 that children are least likely to work in the service occupation and are
 more likely to work in the textile sector. The findings highlight the
 diversity in the occupational distribution of child workers by gender and
 show how their individual and family characteristics influence
 occupational choices. The service sector, which comprises of mostly maids,
 is a hidden sector. This sector makes children vulnerable to abuse. Thus,
 it is suggested that policy makers need to come up with effective
 legislations that would protect the children who work in the 'hidden
 informal' sector.
Journal: Applied Economics 
Pages: 4982-4995 
Issue: 46 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1039704 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039704 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4982-4995




Template-Type: ReDIF-Article 1.0
Author-Name: Saban Nazlioglu 
Author-X-Name-First: Saban 
Author-X-Name-Last: Nazlioglu 
Author-Name: Shawkat Hammoudeh 
Author-X-Name-First: Shawkat 
Author-X-Name-Last: Hammoudeh 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Volatility transmission between Islamic and conventional equity markets: evidence from causality-in-variance test 
Abstract:
 This study examines whether a volatility/risk transmission exists between
 the Dow Jones Islamic stock and three conventional stock markets for the
 United States, Europe and Asia during the pre- and the in- and post-2008
 crisis periods. It also explores the volatility spillover dynamics between
 those markets and US Monetary policy, oil prices, global financial risk
 and uncertainty factors. The recently developed Hafner and Herwartz
 (2006)'s causality-in-variance test provides evidence of risk transfers
 between these seemingly different equity markets, indicating a contagion
 between them during the full sample and the subperiods. The volatility
 structure of these markets is dominated by short-run volatility in the
 first period and by high long-run volatility in the second period. The
 volatility impulse response analysis indicates a similar volatility
 transmission pattern although it is characterized by a more volatile and
 short-lived structure in the second period. It also appears that the
 Islamic equity market responds to shocks from the risk factors and not
 from the oil price and the US economic policy uncertainty index during
 both periods.
Journal: Applied Economics 
Pages: 4996-5011 
Issue: 46 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1039705 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039705 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4996-5011




Template-Type: ReDIF-Article 1.0
Author-Name: Sofiane Aboura 
Author-X-Name-First: Sofiane 
Author-X-Name-Last: Aboura 
Author-Name: Julien Chevallier 
Author-X-Name-First: Julien 
Author-X-Name-Last: Chevallier 
Title: Realized EquiCorrelation: a bird's-eye view of financial stress on equity markets 
Abstract:
 This article addresses the issue of measuring the level of aggregate
 financial stress on stock markets, which is a central issue for investors
 and policy-makers. To this end, Realized EquiCorrelation (REC) is obtained
 by plugging realized volatility as an input into the Dynamic
 EquiCorrelation (DECO) model where both the continuous and jump components
 of realized volatility are considered. An application is provided for the
 20 major stock markets over January 2000-May 2014 using intra-day data.
 The results remarkably pick up financial stress periods.
Journal: Applied Economics 
Pages: 5013-5033 
Issue: 47 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042139 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042139 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5013-5033




Template-Type: ReDIF-Article 1.0
Author-Name: Minjung Kim 
Author-X-Name-First: Minjung 
Author-X-Name-Last: Kim 
Title: The effect of strategic alliances on firm productivity in South Korea 
Abstract:
 Using a rich firm-level data set from South Korea, this article analyses
 the impact of strategic alliances on firm performance, focusing on how
 firm productivity is affected by alliance types such as joint venture,
 joint technical development, technical alliance, joint marketing and
 coproduction as well as alliance structures such as intra- and
 inter-industry alliances. Total factor productivity (TFP) is estimated
 through the semi-parametric method suggested by Levinsohn and Petrin
 (2003). In addition, a two-stage least-squares (2SLS) method is applied to
 reduce the potential endogenous problem between productivity and strategic
 alliance choices. The empirical results found in this article indicate
 that the engagement in joint ventures positively affects firm productivity
 and that the formation of international intra-industry alliances has a
 positive impact on firm productivity.
Journal: Applied Economics 
Pages: 5034-5044 
Issue: 47 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042140 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042140 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5034-5044




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Suphat Suphachalasai 
Author-X-Name-First: Suphat 
Author-X-Name-Last: Suphachalasai 
Author-Name: Thanet Makjamroen 
Author-X-Name-First: Thanet 
Author-X-Name-Last: Makjamroen 
Title: Residential demand estimation for bundled fixed-line and wireless mobile broadband services 
Abstract:
 This article is the first investigation of residential Internet markets in
 Thailand, in particular Bangkok. Bangkok is an interesting market to study
 as it is Thailand's most populous province, and supports an advanced
 economy. The study offers a comprehensive discussion of the process to
 obtain cross-price elasticity estimates when Internet services are
 bundled. Interestingly, the empirical results reveal positive cross-price
 effects, i.e. Internet alternatives are viewed as substitutes by
 respondents in this market. This finding is plausible as the services
 differ essentially in their model of delivery.
Journal: Applied Economics 
Pages: 5045-5056 
Issue: 47 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042141 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5045-5056




Template-Type: ReDIF-Article 1.0
Author-Name: Yun Xu 
Author-X-Name-First: Yun 
Author-X-Name-Last: Xu 
Author-Name:  Ouyang 
Author-X-Name-First:  
Author-X-Name-Last: Ouyang 
Title: China wage inequality: the role of trade and technology 
Abstract:
 This article empirically investigates the impact of international trade
 and technical change on skill premia for a panel of 28 manufacturing
 sectors in China over the period 2002-2011. The results find that the
 effect of changes of the share of SOEs is twofold. First, the contraction
 of SOEs promoted productivity growth, and the promoting effect was
 skill-biased, which tended to increase the skill premia in China. Second,
 the drop of product prices resulting from falling SOEs share was more
 magnificent in skill-intensive industries, which helped to mitigate wage
 inequality through product prices. The accounted-for portion of price
 changes by productivity growth was skill-biased, significantly raising
 skill premia through product prices. However, the portion of price changes
 accounted for by foreign price was unskill-biased, and world price
 competition diminished the growing income disparity in China.
Journal: Applied Economics 
Pages: 5057-5071 
Issue: 47 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042142 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5057-5071




Template-Type: ReDIF-Article 1.0
Author-Name: Steve Cook 
Author-X-Name-First: Steve 
Author-X-Name-Last: Cook 
Author-Name: Tom Winfield 
Author-X-Name-First: Tom 
Author-X-Name-Last: Winfield 
Title: The urban-rural divide, regional disaggregation and the convergence of crime 
Abstract:
 Potential regional variation in crime rates has been recognized as an
 issue of clear importance given its implications for the development and
 evaluation of theories of criminal activity, determining the appropriate
 level of disaggregation at which to undertake empirical analyses of crime
 and whether crime fighting policies should be constructed at a national or
 local level. Consequently, a literature has evolved examining the
 similarities in US regional crime rates and whether a national trend
 exists or is emerging. The present article extends the recent research
 into the emergence of a national trend by considering convergence in
 alternative classifications of crime using a data set subject to a higher
 degree of disaggregation than considered hitherto. The results obtained
 overturn previous findings obtained using more highly aggregated data,
 indicating the detection of convergence to be dependent upon the level of
 disaggregation considered. In addition, the extent of convergence detected
 is shown to vary across classifications of criminal activity and reflect
 anecdotally noted changes in the evolution of crime at a national level.
 The implications of the observed regional variation in crime for the
 urban-rural divide and theoretical, empirical and policy analyses are
 noted.
Journal: Applied Economics 
Pages: 5072-5087 
Issue: 47 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042143 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042143 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5072-5087




Template-Type: ReDIF-Article 1.0
Author-Name:  Cheng 
Author-X-Name-First:  
Author-X-Name-Last: Cheng 
Author-Name:  Fung 
Author-X-Name-First:  
Author-X-Name-Last: Fung 
Author-Name:  Hu 
Author-X-Name-First:  
Author-X-Name-Last: Hu 
Author-Name:  Cheng 
Author-X-Name-First:  
Author-X-Name-Last: Cheng 
Title: Interest rate deregulation and banks' off-balance-sheet activities: a Hong Kong perspective 
Abstract:
 Through the interest rate deregulation and banks' off-balance-sheet
 activities (OBSAs) in Hong Kong, this study investigates the debate over
 the impact of banking deregulation on banks' risk-taking behaviour. On the
 one hand, the Arrow effect implies that increased competition caused by
 the interest rate deregulation motivates Hong Kong banks to speed up their
 development of OBSAs as an additional but riskier income source. On the
 other hand, the Schumpeterian effect implies that the deregulation may
 reduce the banks' financial capability in developing new products and thus
 downscale their OBSA adoption. Our findings show that, while the negative
 scale effect is statistically insignificant, the interest rate
 deregulation has a positive and significant impact on the adoption rate
 for all OBSA categories. We therefore conclude that the interest rate
 deregulation unambiguously leads to riskier bank behaviour in terms of
 higher OBSA adoption.
Journal: Applied Economics 
Pages: 5088-5102 
Issue: 47 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042144 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5088-5102




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Wanke 
Author-X-Name-First: Peter 
Author-X-Name-Last: Wanke 
Author-Name:  Barros 
Author-X-Name-First:  
Author-X-Name-Last: Barros 
Title: Slacks determinants in Brazilian railways: a distance friction minimization approach with fixed factors 
Abstract:
 This study investigates the drivers for output-increasing/input-saving
 potentials in the Brazilian railway industry, which has undergone
 significant transformations since its privatization in the mid-1990s. The
 main research objective is to determine whether or not different types of
 cargoes and geographic regions serviced present a significant impact on
 railway slacks by applying a distance friction minimization (DFM) approach
 with fixed factors. Based on a balanced panel model, secondary data from
 the period 2004 to 2012 were collected and analysed. Results support
 anecdotal evidence regarding a heterogeneous impact of types of cargo and
 geographic location on input-reducing and output-increasing potentials,
 besides network length and average speed. Policy implications for railway
 authorities are also addressed by focusing on the specifics of each
 railway operator.
Journal: Applied Economics 
Pages: 5103-5120 
Issue: 47 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042145 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042145 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5103-5120




Template-Type: ReDIF-Article 1.0
Author-Name:  Fullerton 
Author-X-Name-First:  
Author-X-Name-Last: Fullerton 
Author-Name: E. Pallarez 
Author-X-Name-First: E. 
Author-X-Name-Last: Pallarez 
Author-Name:  Walke 
Author-X-Name-First:  
Author-X-Name-Last: Walke 
Title: Downtown parking meter demand in a border metropolitan economy 
Abstract:
 Prior research establishes that the price of parking in the city centre
 often impacts the decision to travel downtown and the mode of
 transportation utilized. Other factors that influence the decision to
 drive and park downtown have received less attention. This study uses time
 series data to analyse the demand for metered parking spaces in El Paso,
 Texas, USA. In addition to meter rates, the determinants of demand include
 personal income, gasoline prices and the price of a substitute good,
 parking garage spaces. Because international bridges connect downtown El
 Paso to neighbouring Ciudad JuᲥz, Chihuahua, Mexico, the impacts of
 trans-boundary traffic flows, bridge tolls and other cross-border economic
 variables are also included as potential determinants of metered parking
 demand. Results indicate that parking meter rates, other
 transportation-related costs, and economic conditions in both countries
 affect meter use.
Journal: Applied Economics 
Pages: 5121-5130 
Issue: 48 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042146 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5121-5130




Template-Type: ReDIF-Article 1.0
Author-Name: Valeria Bernardo 
Author-X-Name-First: Valeria 
Author-X-Name-Last: Bernardo 
Author-Name: Xavier Fageda 
Author-X-Name-First: Xavier 
Author-X-Name-Last: Fageda 
Author-Name: Montserrat Termes 
Author-X-Name-First: Montserrat 
Author-X-Name-Last: Termes 
Title: Do droughts have long-term effects on water consumption? Evidence from the urban area of Barcelona 
Abstract:
 This article examines the long-term effects of droughts on water
 consumption using data of municipalities of the urban area of Barcelona.
 Two important characteristics of the sample of municipalities are the
 relatively low water consumption in the pre-drought period and the fact
 that indoor uses are clearly predominant. Controlling for prices, income
 and various socio-demographic factors, we find a reduction in water
 consumption not only during the drought episode but also in subsequent
 periods. These permanent reductions in water use may be explained by
 household behavioural changes, technological changes or structural water
 policy changes.
Journal: Applied Economics 
Pages: 5131-5146 
Issue: 48 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042147 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042147 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5131-5146




Template-Type: ReDIF-Article 1.0
Author-Name: Jimmie Goode 
Author-X-Name-First: Jimmie 
Author-X-Name-Last: Goode 
Author-Name:  Kim 
Author-X-Name-First:  
Author-X-Name-Last: Kim 
Author-Name:  Fabozzi 
Author-X-Name-First:  
Author-X-Name-Last: Fabozzi 
Title: Full versus quasi MLE for ARMA-GARCH models with infinitely divisible innovations 
Abstract:
 We compare the backtesting performance of ARMA-GARCH models with the most
 common types of infinitely divisible innovations, fit with both full
 maximum likelihood estimation (MLE) and quasi maximum likelihood
 estimation (QMLE). The innovation types considered are the Gaussian,
 Student's <italic>t</italic>, <italic>&alpha;</italic>-stable, classical
 tempered stable (CTS), normal tempered stable (NTS) and generalized
 hyperbolic (GH) distributions. In calm periods of decreasing volatility,
 MLE and QMLE produce near identical performance in forecasting
 value-at-risk (VaR) and conditional value-at-risk (CVaR). In more volatile
 periods, QMLE can actually produce superior performance for CTS, NTS and
 <italic>&alpha;</italic>-stable innovations. While the
 <italic>t</italic>-ARMA-GARCH model has the fewest number of VaR
 violations, rejections by the Kupeic and Berkowitz tests suggest
 excessively large forecasted losses. The <italic>&alpha;</italic>-stable,
 CTS and NTS innovations compare favourably, with the latter two also
 allowing for option pricing under a single market model.
Journal: Applied Economics 
Pages: 5147-5158 
Issue: 48 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1042203 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042203 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5147-5158




Template-Type: ReDIF-Article 1.0
Author-Name: Jiaoju Ge 
Author-X-Name-First: Jiaoju 
Author-X-Name-Last: Ge 
Author-Name: Alfonso Flores-Lagunes 
Author-X-Name-First: Alfonso 
Author-X-Name-Last: Flores-Lagunes 
Author-Name:  Kilmer 
Author-X-Name-First:  
Author-X-Name-Last: Kilmer 
Title: An analysis of bargaining power for milk cooperatives and milk processors in Florida 
Abstract:
 The Florida dairy market has a few fluid milk processors and many dairy
 farmers. The dairy farmers are represented in negotiation with the
 processors by a cooperative. This research builds a theoretical model of
 bargaining between the processors and a cooperative. The model is applied
 to the Florida dairy market to examine price negotiations between Florida
 milk processors and a dairy cooperative. An expectation maximization (EM)
 algorithm along with maximum likelihood estimation is used to estimate the
 econometric disequilibrium model with time series data for the period of
 October 1998 to May 2009. The results show that the class I price set by
 the Federal Milk Marketing Order is the major factor influencing the
 cooperative's supply reservation price. Negotiated quantity and production
 seasonality affect the processors' demand reservation price. The
 processors appear to be more patient and have higher average bargaining
 power (0.8804) than the cooperative (0.1196). The highest (lowest)
 bargaining power for the cooperative (processors) occurred in 2008 and the
 lowest (highest) bargaining power for the cooperative (processors)
 occurred in 2001.
Journal: Applied Economics 
Pages: 5159-5168 
Issue: 48 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1044645 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5159-5168




Template-Type: ReDIF-Article 1.0
Author-Name:  Tng 
Author-X-Name-First:  
Author-X-Name-Last: Tng 
Author-Name:  Kwek 
Author-X-Name-First:  
Author-X-Name-Last: Kwek 
Title: Financial stress, economic activity and monetary policy in the ASEAN-5 economies 
Abstract:
 This article uses a structural vector autoregression approach to analyse
 the impact of financial stress on the economy and the relationship between
 monetary policy and financial stress in the ASEAN-5 economies (Indonesia,
 Malaysia, Philippines, Singapore and Thailand). We find that an increase
 in financial stress leads to tighter credit conditions and lower economic
 activity in all five countries. The estimated impact on the real economy
 displays an initial rapid decline followed by a gradual dissipation. In
 Malaysia, the Philippines and Thailand, the central banks tend to reduce
 policy interest rates (IRs) when financial stress increases, although
 there is substantial cross-country variation in the magnitude and time
 dynamics. The lower policy IRs are found to have little significant
 effects in lowering financial stress, but are still effective in
 stimulating economic activity through other channels. These findings imply
 that easing monetary policy is likely necessary but insufficient to
 address growth slowdowns associated with financial stress. Monetary easing
 should instead be complemented with other policy measures which are
 targeted at restoring financial stress to normal levels.
Journal: Applied Economics 
Pages: 5169-5185 
Issue: 48 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1044646 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5169-5185




Template-Type: ReDIF-Article 1.0
Author-Name:  Alam 
Author-X-Name-First:  
Author-X-Name-Last: Alam 
Author-Name:  Paramati 
Author-X-Name-First:  
Author-X-Name-Last: Paramati 
Title: Do oil consumption and economic growth intensify environmental degradation? Evidence from developing economies 
Abstract:
 The purpose of this article is to empirically investigate the impact of
 economic growth, oil consumption, financial development, industrialization
 and trade openness on carbon dioxide (CO<sub>2</sub>) emissions,
 particularly in relation to major oil-consuming developing economies. This
 study utilizes annual data from 1980 to 2012 on a panel of 18 developing
 countries. Our empirical analysis employs robust panel cointegration tests
 and a vector error correction model (VECM) framework. The empirical
 results of three panel cointegration models suggest that there is a
 significant long-run equilibrium relationship among economic growth, oil
 consumption, financial development, industrialization, trade openness and
 CO<sub>2</sub> emissions. Similarly, results from VECMs show that economic
 growth, oil consumption and industrialization have a short-run dynamic
 bidirectional feedback relationship with CO<sub>2</sub> emissions.
 Long-run (error-correction term) bidirectional causalities are found among
 CO<sub>2</sub> emissions, economic growth, oil consumption, financial
 development and trade openness. Our results confirm that economic growth
 and oil consumption have a significant impact on the CO<sub>2</sub>
 emissions in developing economies. Hence, the findings of this study have
 important policy implications for mitigating CO<sub>2</sub> emissions and
 offering sustainable economic development.
Journal: Applied Economics 
Pages: 5186-5203 
Issue: 48 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1044647 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044647 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5186-5203




Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Anandamayee Majumdar 
Author-X-Name-First: Anandamayee 
Author-X-Name-Last: Majumdar 
Title: Forecasting US real house price returns over 1831-2013: evidence from copula models 
Abstract:
 Given the existence of nonnormality and nonlinearity in the data
 generating process of real house price returns over the period of
 1831-2013, this article compares the ability of various univariate copula
 models, relative to standard benchmarks (naive and autoregressive models)
 in forecasting real US house price over the annual out-of-sample period of
 1874-2013, based on an in-sample of 1831-1873. Overall, our results
 provide overwhelming evidence in favour of the copula models (Normal,
 Student's <italic>t</italic>, Clayton, Frank, Gumbel, Joe and
 Ali-Mikhail-Huq) relative to linear benchmarks, and especially for the
 Student's <italic>t</italic>-copula, which outperforms all other models
 both in terms of in-sample and out-of-sample predictability results. Our
 results highlight the importance of accounting for nonnormality and
 nonlinearity in the data generating process of real house price returns
 for the US economy for nearly two centuries of data.
Journal: Applied Economics 
Pages: 5204-5213 
Issue: 48 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1044648 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044648 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5204-5213




Template-Type: ReDIF-Article 1.0
Author-Name: Vicente German-Soto 
Author-X-Name-First: Vicente 
Author-X-Name-Last: German-Soto 
Author-Name:  Chapa Cant&uacute; 
Author-X-Name-First:  
Author-X-Name-Last: Chapa Cant&uacute; 
Title: Cointegration with structural changes between per capita product and income inequality in Mexico 
Abstract:
 The long-run relationship between per capita product and income inequality
 in Mexico is assessed for the period 1963-2010. The methodology consists
 of stochastic unit root techniques with structural changes. The
 integration and cointegration tests suggest that it is not possible to
 understand this link if the possibility of structural changes is not taken
 into account. Causality, running from per capita product to income
 inequality, and a negative and significant overall effect are estimated.
 However, after the regime shifts - mainly estimated to occur in the 1980s
 - the connection is no longer meaningful. This result seems to be linked
 to the slow growth of the Mexican economy after these structural breaks,
 affecting, in turn, the reductions in income inequality.
Journal: Applied Economics 
Pages: 5215-5228 
Issue: 49 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1044649 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044649 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5215-5228




Template-Type: ReDIF-Article 1.0
Author-Name:  Mour&atilde;o 
Author-X-Name-First:  
Author-X-Name-Last: Mour&atilde;o 
Author-Name:  Teixeira 
Author-X-Name-First:  
Author-X-Name-Last: Teixeira 
Title: Gini playing soccer 
Abstract:
 The level of income inequality in a European country influences the
 competitive balance of its major soccer leagues. We test this hypothesis
 using cointegration techniques for seven male professional soccer leagues
 (the Dutch, English, French, German, Italian, Spanish and Ukrainian soccer
 leagues) from the 1980/1981 season to the 2011/2012 season. Controlling
 for the level of income inequality using variables such as real GDP per
 capita, trade openness and the emigration rate, we conclude that income
 inequality (measured by the Gini index) causes changes in the measures of
 competitive balance that we employ (the Hirschman-Herfindahl index and the
 SD) concerning the final number of points scored by the various teams.
Journal: Applied Economics 
Pages: 5229-5246 
Issue: 49 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1044650 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044650 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5229-5246




Template-Type: ReDIF-Article 1.0
Author-Name: Mei Qiu 
Author-X-Name-First: Mei 
Author-X-Name-Last: Qiu 
Author-Name:  Pinfold 
Author-X-Name-First:  
Author-X-Name-Last: Pinfold 
Author-Name:  Rose 
Author-X-Name-First:  
Author-X-Name-Last: Rose 
Title: A currency preferential approach to international equity investment 
Abstract:
 We propose a <italic>Timex</italic> strategy for reducing the foreign
 exchange risk associated with international equity investment, pertaining
 to countries with currencies correctly or undervalued by the standard of
 PPP. The performance of <italic>Timex</italic> is examined from the
 perspectives of eight developed nations with long histories of
 free-floating currencies. Based on the data from 1986:Q1 to 2014:Q4, we
 find unambiguous evidence for the superior performance of
 <italic>Timex</italic> in the foreign exchange market. Compared with the
 passive diversification strategy and the Morgan Stanley Capital
 International (MSCI) World index, <italic>Timex</italic> offers higher
 total returns and risk-adjusted total returns when rebalanced every 6 or
 12 months for investors based in all eight countries under study. When
 rebalanced at a 3-year interval, <italic>Timex</italic> outperforms the
 passive diversification and the MSCI World index for five and all eight
 countries, respectively.
Journal: Applied Economics 
Pages: 5247-5261 
Issue: 49 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1044651 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044651 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5247-5261




Template-Type: ReDIF-Article 1.0
Author-Name: Yared Seid 
Author-X-Name-First: Yared 
Author-X-Name-Last: Seid 
Author-Name: Shiferaw Gurmu 
Author-X-Name-First: Shiferaw 
Author-X-Name-Last: Gurmu 
Title: The role of birth order in child labour and schooling 
Abstract:
 Does when a child was born relative to his or her siblings affect whether
 the child attends school or participates in child labour? We investigate
 this question by estimating the causal effect of birth order on the
 probabilities of school attendance and child labour participation. To
 address the potential endogeneity of family size, we use instrumental
 variable approach where the proportion of boys in the family is used to
 instrument family size. Using a longitudinal household survey data from
 Ethiopia, we estimate unobserved effects bivariate probit instrumental
 variable model of school attendance and child labour choices. The results
 suggest that the probability of child labour participation decreases with
 birth order, but we find no evidence that suggests birth order affects the
 probability of school attendance. However, among children who are going to
 school, hours spent studying increases with birth order. Results from
 complementary time-use analysis reveal that there is no birth order effect
 on hours spent on household chore. However, hours spent on school
 increases with birth order, where the increase in hours spent on school
 seems to come from a decrease in hours spent on market work.
Journal: Applied Economics 
Pages: 5262-5281 
Issue: 49 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1047086 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047086 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5262-5281




Template-Type: ReDIF-Article 1.0
Author-Name:  Leonard 
Author-X-Name-First:  
Author-X-Name-Last: Leonard 
Title: Choice of Ontario high schools and student sorting by ability 
Abstract:
 To what extent can offering more choice in schooling lead to 'cream
 skimming,' or the sorting of students by ability? I study whether
 increased choice leads to student sorting by ability into high schools in
 the Greater Toronto Area. On average, 41% of students 'opt out' of the
 high school to which they would normally be assigned based on their
 residence. Students are more likely to opt out in areas where
 accessibility to other schools is greatest due to population density and
 explicit 'open enrolment' policies. While students of higher ability are
 generally more likely to opt out, an interaction term between school
 choice and ability is insignificant, suggesting that increased choice does
 not have differential impacts by student ability. Findings are robust to
 changes in assumptions about instrument exogeneity.
Journal: Applied Economics 
Pages: 5282-5302 
Issue: 49 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1047087 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047087 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5282-5302




Template-Type: ReDIF-Article 1.0
Author-Name:  Paramati 
Author-X-Name-First:  
Author-X-Name-Last: Paramati 
Author-Name: Rakesh Gupta 
Author-X-Name-First: Rakesh 
Author-X-Name-Last: Gupta 
Author-Name: Eduardo Roca 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Roca 
Title: Stock market interdependence between Australia and its trading partners: does trade intensity matter? 
Abstract:
 We investigate the extent and manner of stock market interdependence
 between Australia and its trading partners and examine whether this is
 affected by trade intensity. Based on trade intensity, we classify
 Australia's trading partners into major, medium and minor partners. We
 hypothesize that markets with greater (lower) trade intensity will be more
 (less) interdependent with Australia. We perform correlation
 (unconditional and conditional) analyses between Australia and its trading
 partners. Our results indicate that most of the markets that are highly
 correlated with Australia are its major trading partners. We conduct panel
 regression analysis to investigate whether trade intensity has any impact
 on the stock market correlations between Australia and its trading
 partners. The results show that trade intensity significantly and
 positively affect the correlations of Australia with its major trading
 partners. Thus, the results confirm our hypothesis that trade intensity
 drives stock market interdependence between Australia and its trading
 partners.
Journal: Applied Economics 
Pages: 5303-5319 
Issue: 49 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1047088 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047088 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5303-5319




Template-Type: ReDIF-Article 1.0
Author-Name: Agyenim Boateng 
Author-X-Name-First: Agyenim 
Author-X-Name-Last: Boateng 
Author-Name: Wei Huang 
Author-X-Name-First: Wei 
Author-X-Name-Last: Huang 
Author-Name:  Kufuor 
Author-X-Name-First:  
Author-X-Name-Last: Kufuor 
Title: Commercial bank ownership and performance in China 
Abstract:
 This study examines the determinants of bank performance based on proxy
 variables that assess the quality of assets, profitability, liquidity and
 overall performance. Using a sample of 111 Chinese commercial banks over
 the period of 2000-2012, we find that foreign banks appear to have better
 asset quality and overall performance although lower profitability
 compared to domestic banks. In contrast, the state-owned banks tend to be
 more profitable and have better liquidity position compared with other
 domestic banks and foreign banks. At bank level, equity/liability ratio
 exerts significant influence on overall bank performance, while at the
 macroeconomic level, per capital GDP, GDP growth, inflation and
 unemployment rates appear to have a bearing on bank performance.
Journal: Applied Economics 
Pages: 5320-5336 
Issue: 49 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1047089 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047089 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5320-5336




Template-Type: ReDIF-Article 1.0
Author-Name: Qianqian Wang 
Author-X-Name-First: Qianqian 
Author-X-Name-Last: Wang 
Author-Name:  Choi 
Author-X-Name-First:  
Author-X-Name-Last: Choi 
Title: Co-movement of the Chinese and U.S. aggregate stock returns 
Abstract:
 This article studies the co-movement of the levels, as well as of the
 volatilities, of the Chinese and U.S. aggregate stock returns in
 1995-2014, focusing on the impact of the liberalization of Chinese stock
 market from 2005. The volatilities of the two returns appear to have
 started to co-move in 2006. To understand the co-movement, we use the
 GARCH BEKK method. The result suggests that before 2006, the evolution of
 the U.S. returns had a tendency to affect the Chinese returns in level and
 volatility. However, after 2006, the two returns affected each other in a
 more complex way.
Journal: Applied Economics 
Pages: 5337-5353 
Issue: 50 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1047090 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047090 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5337-5353




Template-Type: ReDIF-Article 1.0
Author-Name: Marie-Claude Beaulieu 
Author-X-Name-First: Marie-Claude 
Author-X-Name-Last: Beaulieu 
Author-Name: Habiba Mrissa Bouden 
Author-X-Name-First: Habiba 
Author-X-Name-Last: Mrissa Bouden 
Title: Firm-specific risk and IPO market cycles 
Abstract:
 This article characterizes the role of risk in the initial public offering
 (IPO) cycle. While most of the previous literature uses the volatility of
 IPO initial returns to measure risk, we focus on different risk measures,
 namely firm-level systematic and idiosyncratic volatilities and the
 market-wide implied volatility index (VIX), to assess their role in the
 IPO cycle. Our results shed new light on (1) which risk measure is
 important in the determination of IPO cycles, (2) the temporal pattern of
 each risk component across issuing firms and (3) the relationship between
 market-wide uncertainty and IPO risk. Our findings reveal a lead-lag
 relationship between IPO waves, VIX and the IPO systematic risk measure.
 We also highlight the fact that market-level uncertainty predicts IPO
 activity and the level of idiosyncratic risk of the next-period-issuing
 firms. Issuing firms' systematic risk can only be predicted by the
 systematic risk of firms now proceeding to their offering. The main
 implication resulting from our study is that one can better anticipate
 'hot-issue' markets, as well as the specific risk components of future new
 issues. This will help improve upon the regulatory environment, IPO
 investment decisions and IPO timing given market receptivity.
Journal: Applied Economics 
Pages: 5354-5377 
Issue: 50 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1047091 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047091 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5354-5377




Template-Type: ReDIF-Article 1.0
Author-Name: P䲠Sjölander 
Author-X-Name-First: P䲠
Author-X-Name-Last: Sjölander 
Author-Name: Ghazi Shukur 
Author-X-Name-First: Ghazi 
Author-X-Name-Last: Shukur 
Author-Name: Kristofer M害son 
Author-X-Name-First: Kristofer 
Author-X-Name-Last: M害son 
Author-Name: Orsa Kekezi 
Author-X-Name-First: Orsa 
Author-X-Name-Last: Kekezi 
Title: The efficiency of the Scandinavian banking sector - a wavelet quantile regression analysis 
Abstract:
 In this article, the Scandinavian housing financing market is analysed in
 order to determine whether the interest rate price-discovery processes of
 Denmark, Norway and Sweden are efficient. Based on wavelet quantile
 regression analysis, we find systematic positive asymmetric price
 transmission (APT) inefficiencies. We conclude that there is a very high
 propensity for mortgage lenders to directly increase its customers'
 mortgage interest rates subsequently to an increase in its borrowing
 costs. However, after a corresponding borrowing cost decrease, the same
 mortgage lenders are very slow to decrease its customers' mortgage rates.
 These positive coefficients for so-called APT effects are found in all
 Scandinavian countries, even if the coefficients for Norway were not
 statistically significant. Wavelet quantile regression analysis, with a
 focus on the relevant higher percentiles, is easily motivated since the
 mortgage rates are adjusted very infrequently. Moreover, wavelet
 decomposition allows a robust analysis at different time frequency scales,
 while simultaneously controlling for nonstationary trends, autocorrelation
 and structural breaks. Except for the still positive but yet insignificant
 and inconclusive coefficients for Norway, the result is very clear-cut.
 Regardless of which wavelet scaling decomposition or quantile coefficient
 that is studied - positive APT effects are clearly identified and
 confirmed on the Scandinavian mortgage market.
Journal: Applied Economics 
Pages: 5378-5389 
Issue: 50 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1047092 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047092 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5378-5389




Template-Type: ReDIF-Article 1.0
Author-Name: Beatriz Tovar 
Author-X-Name-First: Beatriz 
Author-X-Name-Last: Tovar 
Author-Name:  Ramos-Real 
Author-X-Name-First:  
Author-X-Name-Last: Ramos-Real 
Author-Name:  Fagundes de Almeida 
Author-X-Name-First:  
Author-X-Name-Last: Fagundes de Almeida 
Title: Efficiency and performance in gas distribution. Evidence from Brazil 
Abstract:
 This article analyses the current state of the gas distribution industry
 in Brazil, by identifying the main factors that determine its efficiency.
 In order to test the performance of the industry, we have calculated the
 firms' technical efficiency during the period 2001-2009. We analyse
 whether some economic and technological factors as consumer density, load
 factor or regulation, among others, have affected the performance of this
 industry. We show that companies serving markets with different customer
 characteristics (diversification) have reached higher levels of efficiency
 and evolved faster. Moreover, the private ownership and price cap
 regulation are more efficient in relation to public ownership and cost of
 service regulation. These findings are important to support the
 improvement of the regulation of gas distribution in the Brazilian states.
Journal: Applied Economics 
Pages: 5390-5406 
Issue: 50 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1047093 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047093 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5390-5406




Template-Type: ReDIF-Article 1.0
Author-Name: Jian Hua 
Author-X-Name-First: Jian 
Author-X-Name-Last: Hua 
Author-Name: Bilel Sanhaji 
Author-X-Name-First: Bilel 
Author-X-Name-Last: Sanhaji 
Title: Volatility spillovers across daytime and overnight information between China and world equity markets 
Abstract:
 This article explores the transmission of daytime and overnight
 information in terms of returns and volatility between Chinese and Asian,
 European and North American main stock markets. We propose a bivariate
 analysis with China as benchmark. By testing the constancy of the
 conditional correlations, we use an extended constant or dynamic
 conditional correlation GARCH model. The empirical findings show that
 across the daytime information transmissions, the relationships between
 China and Asian markets are closer than China and non-Asian markets,
 whereas through the overnight information transmissions these
 relationships are inverse. The analysis provides, before the crisis, that
 the overnight volatility spillover effects are from China to the United
 States and the United Kingdom. During the crisis, China affects the United
 Kingdom in terms of daytime volatility spillovers, whereas in terms of
 overnight volatility spillovers China affects the United States and is
 influenced by Japan. After the crisis, daytime volatility spillovers are
 from Taiwan to China, whereas the overnight volatility spillover effects
 are from China to the United States and the United Kingdom.
Journal: Applied Economics 
Pages: 5407-5431 
Issue: 50 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1049335 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1049335 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5407-5431




Template-Type: ReDIF-Article 1.0
Author-Name:  Cardon 
Author-X-Name-First:  
Author-X-Name-Last: Cardon 
Author-Name:  Showalter 
Author-X-Name-First:  
Author-X-Name-Last: Showalter 
Title: The effects of direct-to-consumer advertising of pharmaceuticals on adherence 
Abstract:
 We evaluate the effect of direct-to-consumer (DTC) advertising on
 adherence to the standard drug regimen for treating high cholesterol
 (statins). We use a rich panel data set from an insurance firm that
 includes all prescription drug purchases and insurance claims from 1997 to
 2002.The data include the relevant demographic variables, including
 income. We match this data with unique data from Nielsen Monitor Plus on
 monthly DTC advertising expenditures by therapeutic category for all media
 types.The research strategy identifies individuals who have been diagnosed
 with specific chronic conditions and tracks whether
 <italic>adherence</italic>, as measured by purchases of specific
 prescription drugs within designated therapeutic classes, can be explained
 in part by the level and type of DTC advertising to which the individual
 was potentially exposed. Income has a positive effect on adherence. We
 find that advertising has a small negative effect on the average level of
 adherence. We find some suggestive evidence that this is because
 advertising induces less compliant individuals to start treatment. This
 result is consistent with research in marketing which finds higher
 sensitivity to advertising among consumers with less persistent purchasing
 patterns.
Journal: Applied Economics 
Pages: 5432-5444 
Issue: 50 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1049336 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1049336 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5432-5444




Template-Type: ReDIF-Article 1.0
Author-Name: Mukesh K. Chaudhry 
Author-X-Name-First: Mukesh K. 
Author-X-Name-Last: Chaudhry 
Author-Name: Robert J. Boldin 
Author-X-Name-First: Robert J. 
Author-X-Name-Last: Boldin 
Author-Name: Ibrahim Affaneh 
Author-X-Name-First: Ibrahim 
Author-X-Name-Last: Affaneh 
Author-Name: Geoffrey Tickell 
Author-X-Name-First: Geoffrey 
Author-X-Name-Last: Tickell 
Title: Dividend policy and earnings: a study of short- and long-term causality 
Abstract:
				 This research examines whether earnings
 per share (EPS) and dividends per share (DPS) exhibit a short and long
 causality. The data employed in this study consist of quarterly EPS and
 DPS for 28 of the DJIA companies obtained from Bloomberg over a recent
 10-year period. The companies under investigation all have EPS and DPS
 data available over the period studied. Dividends are generally paid out
 of earnings. The amount and timing of the dividend paid is a function of
 the respective company's dividend policy. Therefore, the EPS<italic>	   
				       <sub>t</sub>			   
	    </italic> can be expressed in terms of the DPS<italic>	   
				 <sub>t</sub>				   
      </italic> as follows: EPS<italic> 				   
	   <sub>t</sub> 				  
 </italic>&nbsp;=&nbsp;<italic>&alpha;</italic>DPS<italic>		   
			      <sub>t</sub>				   
   </italic> where <italic>&alpha;</italic> is a nonnegative constant. The
 equation suggests that there is a linear relationship between the
 EPS<italic>					       <sub>t</sub>	   
			    </italic> and the DPS<italic>		   
			 <sub>t</sub>					
 </italic>. The results of this study indicate that bi-directional
 causality exists for some of the companies.		       
Journal: Applied Economics 
Pages: 5445-5459 
Issue: 50 
Volume: 47 
Year: 2015 
Month: 10 
X-DOI: 10.1080/00036846.2015.1049337 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1049337 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5445-5459




Template-Type: ReDIF-Article 1.0
Author-Name: Rachid Belhachemi 
Author-X-Name-First: Rachid 
Author-X-Name-Last: Belhachemi 
Author-Name: Pierre Rostan 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Rostan 
Author-Name: Fran 篩s-&Eacute;ric Racicot 
Author-X-Name-First: Fran 篩s-&Eacute;ric 
Author-X-Name-Last: Racicot 
Title: Modelling conditional moments and correlation with the continuous hidden-threshold-skew-normal distribution 
Abstract:
 A key issue in modelling conditional densities of returns of financial
 assets is the time-variation of conditional volatility. The classic
 econometric approach models volatility of returns with the generalized
 autoregressive conditional heteroscedasticity (GARCH) models where the
 conditional mean and the conditional volatility depend only on historical
 prices. We propose a new family of distributions in which the conditional
 distribution depends on a latent continuous factor with a continuum of
 states. The distribution has an interpretation in terms of a mixture
 distribution with time-varying mixing probabilities. The distribution
 parameters have economic interpretations in terms of conditional
 volatilities and correlations of the returns with the hidden continuous
 state. We show empirically that this distribution outperforms its main
 competitor, the mixed normal conditional distribution, in terms of
 capturing the stylized facts known for stock returns, namely, volatility
 clustering, leverage effect, skewness, kurtosis and regime dependence.
Journal: Applied Economics 
Pages: 5461-5475 
Issue: 51 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1049338 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1049338 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5461-5475




Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Ping Wang 
Author-X-Name-First: Ching-Ping 
Author-X-Name-Last: Wang 
Author-Name: Hung-Hsi Huang 
Author-X-Name-First: Hung-Hsi 
Author-X-Name-Last: Huang 
Author-Name: Cheng-Yu Chen 
Author-X-Name-First: Cheng-Yu 
Author-X-Name-Last: Chen 
Title: Does past performance affect mutual fund tracking error in Taiwan? 
Abstract:
 This study examines the relationship between fund past performance and
 manager choice of portfolio risk in Taiwan. Employing the exponential
 generalized autoregressive conditional heteroscedasticity and linear
 regression models, the results demonstrate that historically poor average
 performance does not increase mutual fund tracking error (TE) or portfolio
 risk. Additionally, yearly tournament behaviour, namely mid-year losers
 increasing their last-half year TEs, only appears in funds with higher
 management fees. This implies that managers of high management fee funds
 actively increase TE in response to poor historical performance, to enable
 them to beat the market during future months or the second half of the
 year.
Journal: Applied Economics 
Pages: 5476-5490 
Issue: 51 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1051653 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051653 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5476-5490




Template-Type: ReDIF-Article 1.0
Author-Name: Getu Hailu 
Author-X-Name-First: Getu 
Author-X-Name-Last: Hailu 
Author-Name: Alex Maynard 
Author-X-Name-First: Alex 
Author-X-Name-Last: Maynard 
Author-Name: Alfons Weersink 
Author-X-Name-First: Alfons 
Author-X-Name-Last: Weersink 
Title: Empirical analysis of corn and soybean basis in Canada 
Abstract:
 The article examines the factors affecting the basis for corn and soybeans
 using several time-series techniques to account for potential structural
 breaks, seasonality, residual serial correlation and structural breaks, as
 well as potential endogeneity and nonstationarity. The spatio-temporal
 empirical framework is based on storage and trade theories which assume
 the relationship between nondelivery location's spot price and futures
 price of a storable commodity depends on opportunity cost of capital,
 warehousing costs, a convenience yield and shipping costs. The interest
 rate effect is strong for both crops with shipping costs also affecting
 soybean basis and own inventory levels positively correlated with corn
 basis. The effect of the wedge between the price of carrying physical
 grain and the maximum storage rate on basis is positive for both crops.
 The empirical results, which are robust to multiple estimators, provide
 stronger evidence of a structural break for the soybean basis than for the
 corn basis.
Journal: Applied Economics 
Pages: 5491-5509 
Issue: 51 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1051654 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051654 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5491-5509




Template-Type: ReDIF-Article 1.0
Author-Name: Issouf Soumar頍
Author-X-Name-First: Issouf 
Author-X-Name-Last: Soumar頍
Title: Does FDI improve economic development in North African countries? 
Abstract:
 This article examines the relationship between FDI inflows and welfare
 improvement in North African countries. Using net per capita FDI inflows
 and the United Nations Development Program's Human Development Index as
 the principal variables, our analyses confirm the positive and strongly
 significant relationship between net FDI inflows and welfare improvement
 in North Africa, although we do find significant differences among the
 countries in the region. This relationship holds even after we control for
 government size, country indebtedness, macroeconomic instability,
 infrastructural development, institutional quality, political risk,
 openness to trade, education and financial market development. Hence, at
 the aggregate level, FDI contributes to economic growth in North Africa,
 in turn generating additional revenues for governments and populations in
 the region through fiscal policies and jobs creation. We also found that
 FDI received by countries in the region are mainly concentrated in very
 few industries (particularly extractive petroleum, services and tourism,
 construction and utilities); relatively fewer of these investments are
 directed towards the nonextractive primary industries, which are pro-poor
 sectors and highly labour intensive, or the manufacturing sector, with a
 high potential for spillover effects in the economy. This lack of
 diversification of FDI received in the region's economies in part explains
 the differences observed in the link between FDI and welfare in these
 countries. It is therefore essential for governments in the region to
 continue investing in social infrastructures while improving the quality
 of their institutions and their governance; doing so will probably help
 avoid the type of unrest we have witnessed recently.
Journal: Applied Economics 
Pages: 5510-5533 
Issue: 51 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1051655 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051655 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5510-5533




Template-Type: ReDIF-Article 1.0
Author-Name: Belayet Hossain 
Author-X-Name-First: Belayet 
Author-X-Name-Last: Hossain 
Title: Women empowerment and infant mortality in Bangladesh 
Abstract:
 This study attempts to investigate the effects of women empowerment on
 infant mortality in Bangladesh. Four indicators have been considered to
 measure four dimensions of women empowerment: the level of education,
 participation in household (HH) decisions, autonomy in movements and
 employment status. The rotated factor analysis technique is used to
 construct the last three dimensions. The Weibull parametric survival model
 has been specified and estimated using the Bangladesh Demographic and
 Health Survey (BDHS) data of 2011. The results show that three measures of
 empowerment (the level of education, participation in HH decisions and
 autonomy in movements) contribute significantly to the reduction of infant
 mortality. But women employment is associated with increased mortality for
 infants. The findings of this study have a number of policy implications
 on this issue for a developing country like Bangladesh.
Journal: Applied Economics 
Pages: 5534-5547 
Issue: 51 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1051657 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051657 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5534-5547




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Kempa 
Author-X-Name-First: Bernd 
Author-X-Name-Last: Kempa 
Author-Name:  Khan 
Author-X-Name-First:  
Author-X-Name-Last: Khan 
Title: On the size of government spending multipliers in Europe 
Abstract:
 This article compares the size of government spending multipliers in
 Europe by applying a panel structural vector autoregression analysis on 11
 eurozone and 8 non-eurozone countries using quarterly data from 1991Q1 to
 2012Q4. We find that (i) spending multipliers are smaller in eurozone
 compared to non-eurozone countries, (ii) across the euro area the impact
 of government spending on GDP has been higher before than after the
 introduction of the euro, (iii) spending multipliers are larger in the
 eurozone periphery than in the core countries and (iv) since the beginning
 of the recent financial crisis, spending multipliers have become larger
 both for eurozone and for non-eurozone countries. We relate these results
 to an emerging theoretical literature linking the size of fiscal
 multipliers to the monetary policy stance. We also discuss the
 implications of our findings for the effectiveness of fiscal policy in
 Europe.
Journal: Applied Economics 
Pages: 5548-5558 
Issue: 51 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1054067 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054067 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5548-5558




Template-Type: ReDIF-Article 1.0
Author-Name: Emanuel Bagna 
Author-X-Name-First: Emanuel 
Author-X-Name-Last: Bagna 
Author-Name: Giuseppe Di Martino 
Author-X-Name-First: Giuseppe 
Author-X-Name-Last: Di Martino 
Author-Name: Davide Rossi 
Author-X-Name-First: Davide 
Author-X-Name-Last: Rossi 
Title: No more discount under enhanced fair value hierarchy 
Abstract:
 We use an integrated approach to analyse the reasons behind the discount
 on the balance-sheet fair value of illiquid financial instruments held by
 European banks and classified into the Level 3 Fair Value hierarchy under
 IFRS 7. We believe that the potential sources of misalignment are (1) the
 lack of disclosure, (2) earnings management, and (3) the lack of
 liquidity. We show that the discount implicit in market values is linked
 to the lack of mandatory additional disclosure required by IFRS 7 and that
 this result supports the strong enforcement activity made by national
 authorities.
Journal: Applied Economics 
Pages: 5559-5582 
Issue: 51 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1054068 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054068 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5559-5582




Template-Type: ReDIF-Article 1.0
Author-Name: Era Dabla-Norris 
Author-X-Name-First: Era 
Author-X-Name-Last: Dabla-Norris 
Author-Name: Raphael Espinoza 
Author-X-Name-First: Raphael 
Author-X-Name-Last: Espinoza 
Author-Name: Sarwat Jahan 
Author-X-Name-First: Sarwat 
Author-X-Name-Last: Jahan 
Title: Spillovers to low-income countries: importance of systemic emerging markets 
Abstract:
 This article documents the expanding economic linkages between low-income
 countries (LICs) and a narrow group of 'Emerging Market (EM) leaders' that
 have become major players in international trade and financial flows. VAR
 models show that these linkages have increased the share of growth
 volatility that can be attributed to foreign shocks in LICs. Dynamic panel
 models further analyse the impact of LIC trade orientation and production
 structure on the sensitivity to foreign shocks. The empirical results
 demonstrate that the elasticity of growth to trading partners' growth is
 high for LICs in three out of the five regions: Asia, Latin America and
 the Caribbean, and Europe and Central Asia. However, for
 commodity-exporting LICs in Sub-Saharan Africa and the Middle East, terms
 of trade shocks and demand from the EM leaders are the main channels of
 transmission of foreign shocks
Journal: Applied Economics 
Pages: 5707-5725 
Issue: 53 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058903 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5707-5725




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Fossati 
Author-X-Name-First: Sebastian 
Author-X-Name-Last: Fossati 
Title: Forecasting US recessions with macro factors 
Abstract:
 Dynamic factors estimated from panels of macroeconomic indicators are used
 to predict future recessions using probit models. Three factors are
 considered: a bond and exchange rates factor, a stock market factor and a
 real activity factor. Three results emerge. First, models that use only
 financial indicators exhibit a large deterioration in fit after 2005.
 Second, models that use factors yield better fit than models that use
 indicators directly. Out-of-sample forecasting exercises confirm these
 results for 3-, 6- and 12-month horizons using both ex-post revised data
 and real-time data. Third, results show evidence that data revisions
 affect factors less than individual indicators.
Journal: Applied Economics 
Pages: 5726-5738 
Issue: 53 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058904 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058904 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5726-5738




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Esmaeil Ebadi 
Author-X-Name-First: Esmaeil 
Author-X-Name-Last: Ebadi 
Title: Impulse response analysis and Orcutt's hypothesis in trade: evidence from developing countries 
Abstract:
 Orcutt's hypothesis in international economics implies that trade flows
 respond to exchange rate changes faster than to changes in relative
 prices. Most previous studies used import and export demand models and
 tested the hypothesis by imposing and comparing lag lengths on the
 exchange rate and relative prices. One recent study, however, employed
 impulse response of trade flows to one SD shock to the nominal exchange
 rate and one SD shock to relative prices and tested the Orcutt's
 hypothesis for several industrial countries. In this article we follow
 this study and test the hypothesis for six developing countries using
 impulse response analysis. Like the other study for industrial countries,
 we do not find much support for the hypothesis.
Journal: Applied Economics 
Pages: 5739-5747 
Issue: 53 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058905 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058905 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5739-5747




Template-Type: ReDIF-Article 1.0
Author-Name:  Riphahn 
Author-X-Name-First:  
Author-X-Name-Last: Riphahn 
Author-Name: Caroline Schwientek 
Author-X-Name-First: Caroline 
Author-X-Name-Last: Schwientek 
Title: What drives the reversal of the gender education gap? Evidence from Germany 
Abstract:
 We study the mechanisms that are associated with the gender education gap
 and its reversal in Germany. We focus on three outcomes, graduation from
 upper secondary school, any tertiary education and tertiary degree.
 Neither individual and family background nor labour market characteristics
 appear to be strongly associated with the gender education gap. There is
 some evidence that the gender gap in upper secondary education reflects
 the rising share of single parent households which impacts boys'
 attainment more than girls'. The gender education gap in tertiary
 education is correlated with the development of class sizes and social
 norms.
Journal: Applied Economics 
Pages: 5748-5775 
Issue: 53 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058906 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058906 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5748-5775




Template-Type: ReDIF-Article 1.0
Author-Name: R駩s Chenavaz 
Author-X-Name-First: R駩s 
Author-X-Name-Last: Chenavaz 
Author-Name: Octavio Escobar 
Author-X-Name-First: Octavio 
Author-X-Name-Last: Escobar 
Title: Population distribution, effective area and economic growth 
Abstract:
 The usual measure for the factor <italic>land</italic> is the total area.
 But total area is a flawed measure because land is of unequal quality. To
 account for land quality, we use an alternative measure called
 <italic>effective area</italic>. Effective area is based on spatial
 population distribution which captures both natural conditions and human
 activity. Theoretically, effective area explains economic growth better
 than total area that biases the measure of total factor productivity (TFP)
 growth. Empirically on the basis of 40&nbsp;years of panel data for the
 United States, an increase of 10% in effective area is associated with an
 economic growth of 5%, and the omission of effective area undervalues the
 growth of TFP by 8.1%.
Journal: Applied Economics 
Pages: 5776-5790 
Issue: 53 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058907 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058907 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5776-5790




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Hsiu Lin 
Author-X-Name-First: Yu-Hsiu 
Author-X-Name-Last: Lin 
Author-Name: Len-Kuo Hu 
Author-X-Name-First: Len-Kuo 
Author-X-Name-Last: Hu 
Title: The cyclicality of bank regulation in a general economic framework 
Abstract:
 This article utilizes a representative agent model to address how the
 regulation policies for banks should respond to the general economic
 condition. With the consideration of a self-fulfilling deposit insurance
 facility with sufficient bank reserve to meet the expected need of
 liquidity shock, our model suggests a <italic>counter-cyclical</italic>
 capital adequacy requirement in a competitive loan market. The exception
 might occur when the moral hazard problem becomes very unwieldy and the
 representative individual is rather risk averse. With regard to the
 closure policy, we find that it is closely related to the individual's
 degree of risk aversion. A <italic>counter-cyclical</italic> closure
 policy is recommended when the individual is highly risk averse.
 Otherwise, a <italic>pro-cyclical</italic> closure policy is preferred.
Journal: Applied Economics 
Pages: 5791-5804 
Issue: 53 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058908 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058908 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5791-5804




Template-Type: ReDIF-Article 1.0
Author-Name: Yasushi Nakamura 
Author-X-Name-First: Yasushi 
Author-X-Name-Last: Nakamura 
Title: Productivity versus elasticity: a normalized constant elasticity of substitution production function applied to historical Soviet data 
Abstract:
 This study tests the extensive growth hypothesis, which would attribute
 the Soviet economic slowdown to low elasticity of substitution and
 over-investment rather than deteriorating productivity growth. To
 circumvent the low availability of data, widely applicable new methods for
 estimating productivity and elasticity of substitution were developed
 based on the normalized constant elasticity of substitution (CES)
 production function. One is an extended version of the Solow residual
 calculation, and the other is a direct estimation of the time-varying
 parameter normalized CES production function. The application of the
 methods to the Soviet data showed a decreasing trend in productivity
 growth and a low elasticity of substitution of approximately 0.25. The
 results neither reject nor support the extensive growth hypothesis because
 of uncertainty in the interpretation of the low elasticity of
 substitution. The results suggest that it is reasonable to assert that
 both deteriorating productivity growth and low elasticity of substitution
 caused the Soviet economic slowdown. Further empirical studies on
 productivity and elasticity of substitution in the Soviet and other
 economies are necessary to fully understand relations between productivity
 growth, elasticity of substitution and economic development.
Journal: Applied Economics 
Pages: 5805-5823 
Issue: 53 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058909 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058909 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5805-5823




Template-Type: ReDIF-Article 1.0
Author-Name:  Hassan 
Author-X-Name-First:  
Author-X-Name-Last: Hassan 
Author-Name: Eliza Wu 
Author-X-Name-First: Eliza 
Author-X-Name-Last: Wu 
Title: Sovereign credit ratings, growth volatility and the global financial crisis 
Abstract:
 Using monthly data from January 1996 to May 2010 for a panel of 76
 developed and emerging economies and adopting an instrumental variable
 (IV) estimation technique by correcting for both heterogeneity and
 endogeneity with the generalized two-stage least squares (G2SLS, EC2SLS)
 procedure method suggested by Balestra and Varadharajan-Krishnakumar
 (1987) and Baltagi and Li (1995), this article provides empirical evidence
 that volatility of per capita GDP growth is reduced when there are
 positive changes in credit ratings; in other words when sovereign credit
 risk improves. To deal with potential simultaneity between sovereign
 credit ratings and output volatility, a system (3SLS) approach is
 undertaken, and our findings remain robust. By weakening the volatility
 dampening effects of ratings changes, it is found that the global
 financial crisis (<italic>GFC</italic>) has enhanced macroeconomic
 volatility. One of the channels via which sovereign rating changes affect
 growth volatility is the financial markets' repricing of sovereign default
 risk that is reflected in sovereign credit default swap (CDS) spreads and
 its volatility.
Journal: Applied Economics 
Pages: 5825-5840 
Issue: 54 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058910 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058910 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5825-5840




Template-Type: ReDIF-Article 1.0
Author-Name: Y. Tsuchiya 
Author-X-Name-First: Y. 
Author-X-Name-Last: Tsuchiya 
Author-Name: T. Kato 
Author-X-Name-First: T. 
Author-X-Name-Last: Kato 
Title: Asymmetric loss and herding behaviour of exchange rate forecasters: evidence from South Africa 
Abstract:
 This study examines the asymmetry of the loss function for private
 forecasters in exchange rate forecasts of the South African rand. It tests
 rationality under the possibility of an asymmetric loss function. The
 results indicate less evidence of asymmetry for a horizon of 1&nbsp;month
 but considerable evidence of asymmetry for a horizon of 3&nbsp;months.
 However, the shapes of the distributions formed by estimated asymmetry
 parameters of sub-samples for each forecaster are symmetric, regardless of
 the forecast horizons, which implies that these forecasters do not herd or
 antiherd. In fact, the results of our empirical herding test show that
 forecasters neither herd nor antiherd, which is in sharp contrast to
 recent findings on antiherding for foreign exchange rates in emerging
 market economies. Our findings provide consistent evidence for a recent
 suggestion that antiherding might result in the rejection of rationality,
 even under asymmetric loss functions. Our findings also suggest that
 central bank transparency might be associated with herding behaviours.
Journal: Applied Economics 
Pages: 5841-5852 
Issue: 54 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058911 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058911 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5841-5852




Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Jackson 
Author-X-Name-First: Jeremy 
Author-X-Name-Last: Jackson 
Author-Name: Art Carden 
Author-X-Name-First: Art 
Author-X-Name-Last: Carden 
Author-Name:  Compton 
Author-X-Name-First:  
Author-X-Name-Last: Compton 
Title: Economic freedom and social capital 
Abstract:
 This article brings together two growing literatures, social capital and
 economic freedom, to examine whether economic freedom contributes to
 social capital. More specifically, using US state-level data from 1986 to
 2004 and both OLS and System GMM dynamic panel estimation, we find that
 there is no clear trade-off between economic freedom and either the level
 or growth of social capital.
Journal: Applied Economics 
Pages: 5853-5867 
Issue: 54 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058912 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058912 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5853-5867




Template-Type: ReDIF-Article 1.0
Author-Name: Chulwoo Han 
Author-X-Name-First: Chulwoo 
Author-X-Name-Last: Han 
Author-Name: Soosung Hwang 
Author-X-Name-First: Soosung 
Author-X-Name-Last: Hwang 
Author-Name: Doojin Ryu 
Author-X-Name-First: Doojin 
Author-X-Name-Last: Ryu 
Title: Market overreaction and investment strategies 
Abstract:
 We investigated the overreaction of the Korean market in response to
 shocks in the US stock market, and analysed the dynamic relationship
 between these two markets since 1996. We found that the KOSPI 200 index
 futures overreacted to the S&P 500 index returns during the period from
 2000 to 2009 when the Korean market was in its growth stage. As the Korean
 market matured and the KOSPI 200 overnight futures were introduced in
 2009, the overreaction disappeared. When investors employed the Kelly
 model or Value-at-Risk to exploit the overreaction, their trading
 strategies produced significant profits during the growth stage even after
 considering transaction costs and risk, but the profits attenuated once
 the overnight futures market was launched in 2009.
Journal: Applied Economics 
Pages: 5868-5885 
Issue: 54 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058913 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058913 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5868-5885




Template-Type: ReDIF-Article 1.0
Author-Name: Yanyan Zheng 
Author-X-Name-First: Yanyan 
Author-X-Name-Last: Zheng 
Author-Name: Tong Shu 
Author-X-Name-First: Tong 
Author-X-Name-Last: Shu 
Author-Name: Shouyang Wang 
Author-X-Name-First: Shouyang 
Author-X-Name-Last: Wang 
Author-Name: Shou Chen 
Author-X-Name-First: Shou 
Author-X-Name-Last: Chen 
Author-Name:  Lai 
Author-X-Name-First:  
Author-X-Name-Last: Lai 
Author-Name: Lu Gan 
Author-X-Name-First: Lu 
Author-X-Name-Last: Gan 
Title: Demand disruption and coordination of supply chain via effort and revenue sharing 
Abstract:
 This article explores the equilibrium behaviour of a basic
 supplier-retailer distribution channel under demand disruption via effort
 and revenue sharing contract. This differs from the traditional supply
 chain coordination model. Firstly, demand is simultaneously affected by
 retail price and nonprice marketing effort from manufacturers and
 retailers. Secondly, when the demand is disrupted, this article considers
 disruptions in the market scale and price sensitivity coefficient.
 Thirdly, the supply chain coordination model is proposed via effort and
 revenue sharing contract. In this way, the manufacturer reduces the
 wholesale price as an incentive for the retailer to share revenue.
 Finally, the total supply chain profit is greater with contract than no
 contract. This also constitutes another incentive for the players to
 follow the effort and revenue sharing contract.
Journal: Applied Economics 
Pages: 5886-5901 
Issue: 54 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058914 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058914 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5886-5901




Template-Type: ReDIF-Article 1.0
Author-Name:  Franses 
Author-X-Name-First:  
Author-X-Name-Last: Franses 
Author-Name: Madesta Lede 
Author-X-Name-First: Madesta 
Author-X-Name-Last: Lede 
Title: Cultural norms and values and purchases of counterfeits 
Abstract:
 We conjecture that an important driver of individual purchases of
 counterfeit products is cultural norms and values. To put this conjecture
 to an empirical test, we make use of the unique situation of Surinamese
 people who live in Suriname and in the Netherlands and who might share the
 same norms and values but certainly not their respective income levels and
 demographics. Holding newly collected data from surveys amongst Surinamese
 individuals in the Netherlands and in Suriname against a control group of
 Dutch individuals in the Netherlands, we present evidence that cultural
 norms are indeed a key driver for purchases of counterfeit products.
 Implications for policy are discussed.
Journal: Applied Economics 
Pages: 5902-5916 
Issue: 54 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1058915 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058915 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5902-5916




Template-Type: ReDIF-Article 1.0
Author-Name: Stuart McChlery 
Author-X-Name-First: Stuart 
Author-X-Name-Last: McChlery 
Author-Name: Reza Kouhy 
Author-X-Name-First: Reza 
Author-X-Name-Last: Kouhy 
Author-Name: Catriona Paisey 
Author-X-Name-First: Catriona 
Author-X-Name-Last: Paisey 
Author-Name: Khaled Hussainey 
Author-X-Name-First: Khaled 
Author-X-Name-Last: Hussainey 
Title: An empirical study of the determinants of UK oil and gas voluntary disclosures 
Abstract:
 Significant oil and gas firm market value is derived from their physical
 reserve quantum, assets which are not recorded on their statements of
 financial position. This article provides empirical evidence regarding
 voluntary disclosure of such reserves in line with the previously
 unresearched UK sector with regard to its unique reporting guidelines. The
 study considers both the reporting of the reserve quantum and the quality
 of that reporting. This article seeks to inform the International
 Accounting Standards Board's (IASB's) on-going consideration of mineral
 resource reporting. Listed companies are considered to evidence forms of
 reserve disclosure with a logistical regression approach applied to
 measure determinants of reporting. The risk associated with mineral
 reporting reserves is hypothesized as the key disclosure driver whilst
 controlling other relevant variables. The majority of firms disclosed
 reserve quantities in some form but only a minority disclosed in line with
 recommended practice, disclosure quality being more variable between
 companies. The findings indicate that a voluntary disclosure approach is
 ineffective, partially explained by agency related behaviour. Risk,
 proxied by the stage of production, drives reserve disclosure showing that
 producer firms are more likely to disclose reserve quantum balances and of
 a significantly higher quality.
Journal: Applied Economics 
Pages: 5917-5931 
Issue: 54 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1061641 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061641 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5917-5931




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Schiersch 
Author-X-Name-First: Alexander 
Author-X-Name-Last: Schiersch 
Author-Name: Heike Belitz 
Author-X-Name-First: Heike 
Author-X-Name-Last: Belitz 
Author-Name: Martin Gornig 
Author-X-Name-First: Martin 
Author-X-Name-Last: Gornig 
Title: Why is TFP growth sectorally concentrated? 
Abstract:
 Research shows that total factor productivity (TFP) growth is weak in
 European countries. This is <italic>inter alia</italic> attributed to the
 fact that substantial TFP growth is limited to a few industries. Because
 TFP growth is typically understood as technological progress, it is
 concluded that technology diffusion between sectors in Europe is hampered.
 We use EU KLEMS data sets to decompose sectoral TFP for nine European
 countries by means of a Malmquist approach in order to identify potential
 sources besides technical progress. Applying Harberger diagrams, we
 describe the sectoral distribution of TFP growth, efficiency gains and
 losses, economies of scale and technological progress. The analysis
 reveals that technological progress is quite evenly distributed across
 sectors in most European countries. The wide scattering of TFP growth is
 explained by deviating efficiency developments and the unused economies of
 scale. We conclude that the technology transfer between sectors in most
 European countries seems to work. Therefore, Europe in general does not
 need a new technology policy, but a further integration of the markets and
 a reduction of national market entry barriers. This requires further
 unification of pan-European standards in fields like trade and crafts
 codes or consumer protection policies.
Journal: Applied Economics 
Pages: 5933-5944 
Issue: 55 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1061642 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:5933-5944




Template-Type: ReDIF-Article 1.0
Author-Name: D󮡬 Palcic 
Author-X-Name-First: D󮡬 
Author-X-Name-Last: Palcic 
Author-Name: Eoin Reeves 
Author-X-Name-First: Eoin 
Author-X-Name-Last: Reeves 
Title: Privatization and the economic performance of Irish Sugar/Greencore 
Abstract:
 As one of Ireland's largest agribusiness companies, the Irish Sugar
 company played a key role in the country's economic development in the
 twentieth century. The company was privatized in 1991 (under the new name
 Greencore) and has since transformed from a largely commodity-based
 agribusiness into an international convenience food company. This article
 analyses the financial and economic performance of the company in the 10
 years before and after privatization. It finds that the change from public
 to private ownership was not strongly associated with improved financial
 performance and productivity as the company had experienced rapid growth
 and improvement in the pre-privatization period. These findings run
 counter to perspectives such as public choice theory that suggest a
 positive relationship between privatization and company performance.
 Performance in the post-privatization period was strongly influenced by
 greater exposure to market forces in the company's expanding food
 division; however, it is surprising that this greater competition did not
 translate into improved overall performance.
Journal: Applied Economics 
Pages: 5945-5961 
Issue: 55 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1061643 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:5945-5961




Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Author-Name: Boaz Nandwa 
Author-X-Name-First: Boaz 
Author-X-Name-Last: Nandwa 
Title: Oil dependency and exchange rate regimes in Arab oil economies: time to rethink the paradigm 
Abstract:
 This study examines implications of the current exchange rate regimes on
 the macroeconomic and growth performance of five Arab oil-producing
 countries: Saudi Arabia, the UAE, Sudan, Algeria and Yemen. The study
 evaluates alternative exchange rate regime policy options towards
 exploring an optimal exit strategy to ensure successful transition to more
 sustainable exchange rate regime, especially in the fixed regime economies
 of Saudi Arabia and the UAE. This study proposes the adoption of a
 transparent broad basket, band and crawl (BBC) regime by the Arab oil
 economies in order to provide a better alternative to the existing fixed
 pegs or dirty floats. However, it is imperative to note that, the timing
 of the exit from the current regime and the extent of institutional
 development and market sophistications are very critical to successful
 transition to more sustainable regime that would provide a larger scope
 for counter-cyclical policies and diversification in these economies.
Journal: Applied Economics 
Pages: 5962-5995 
Issue: 55 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1061644 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061644 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:5962-5995




Template-Type: ReDIF-Article 1.0
Author-Name: Fran 篩s-Charles Wolff 
Author-X-Name-First: Fran 篩s-Charles 
Author-X-Name-Last: Wolff 
Title: Does price dispersion increase with quality? Evidence from the online diamond market 
Abstract:
 This article empirically investigates the relationship between price
 dispersion and price level. Searches seem more valuable for products of
 high quality, but buyers may have little incentive to search since such
 products are less frequently purchased. The extent of price dispersion is
 examined using a sample of around 160 000 diamonds offered for sale
 online. Estimates from a two-stage econometric strategy show that price
 dispersion increases significantly with quality. An explanation is that
 buyers of high-quality gemstones pay little attention to the price of
 these diamonds and even more so if they perceive high prices as signals of
 quality and rarity of the diamonds they intend to purchase.
Journal: Applied Economics 
Pages: 5996-6009 
Issue: 55 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1061645 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:5996-6009




Template-Type: ReDIF-Article 1.0
Author-Name: Ramaprasad Bhar 
Author-X-Name-First: Ramaprasad 
Author-X-Name-Last: Bhar 
Author-Name:  Malliaris 
Author-X-Name-First:  
Author-X-Name-Last: Malliaris 
Author-Name: Mary Malliaris 
Author-X-Name-First: Mary 
Author-X-Name-Last: Malliaris 
Title: The impact of large-scale asset purchases on the S&P 500 index, long-term interest rates and unemployment 
Abstract:
 After the bankruptcy of Lehman Brothers in September 2008 and the
 financial panic that ensued, the Federal Reserve moved rapidly to reduce
 the federal funds rate to .25%. It was quickly judged that additional
 measures were needed to stabilize the US economy. Beginning in December
 2008, the Federal Reserve Bank initiated three rounds of unconventional
 monetary policies known as quantitative easing (QE). These policies were
 intended to reduce long-term interest rates when the short-term federal
 funds rates had reached the zero lower bound and could not become
 negative. It was argued that the lowering of longer-term interest rates
 would help the stock market and thus the wealth of consumers. This article
 carefully investigates three hypotheses: QE impacting long-term interest
 rates, QE impacting the stock market and QE impacting unemployment using a
 Markov regime switching methodology. We conclude that QE has contributed
 significantly to increases in the stock market but less significantly to
 long-term interest rate and unemployment.
Journal: Applied Economics 
Pages: 6010-6018 
Issue: 55 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1061646 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:6010-6018




Template-Type: ReDIF-Article 1.0
Author-Name: J. Driessen 
Author-X-Name-First: J. 
Author-X-Name-Last: Driessen 
Author-Name: A. Razzaque 
Author-X-Name-First: A. 
Author-X-Name-Last: Razzaque 
Author-Name: D. Walker 
Author-X-Name-First: D. 
Author-X-Name-Last: Walker 
Author-Name: D. Canning 
Author-X-Name-First: D. 
Author-X-Name-Last: Canning 
Title: The effect of childhood measles vaccination on school enrolment in Matlab, Bangladesh 
Abstract:
 There is increasing evidence that early childhood health interventions
 have long-term effects on cognitive development, educational achievement
 and adult productivity. We examine the effect of measles vaccination on
 the school enrolment of children in Matlab, Bangladesh. An intensive
 measles vaccination programme was introduced in one area in 1982, and
 extended to another in 1985, while a third area acted as a control. Using
 this staggered roll-out as an instrument, we find that age-appropriate
 vaccination raises the probability that a boy has enrolled in school by
 7.4 percentage points but appears to have no effect on girls' enrolment.
Journal: Applied Economics 
Pages: 6019-6040 
Issue: 55 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1061647 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061647 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:6019-6040




Template-Type: ReDIF-Article 1.0
Author-Name: L. Beaudin 
Author-X-Name-First: L. 
Author-X-Name-Last: Beaudin 
Author-Name: J. Skaza 
Author-X-Name-First: J. 
Author-X-Name-Last: Skaza 
Title: Measuring the total impact of demographic and behavioural factors on the risk of obesity accounting for the depression status: a structural model approach using new BMI 
Abstract:
 Building upon previous studies that highlight considerable overlap in the
 influential factors of both obesity and depression, we employ a structural
 model to investigate the direct and indirect impacts of behavioural and
 demographic factors on obesity. We use new body mass index (BMI) to
 calculate the obesity status and find a significant relationship between
 an individual's depression status and his/her obesity status. The results
 and simulations imply that demographic and behavioural factors can
 significantly influence the obesity status both directly and indirectly
 through their impact on depression. Therefore, this study suggests that
 models which do not account for these various pathways of influence are
 most likely misrepresenting the impact of these factors on obesity.
Journal: Applied Economics 
Pages: 6041-6053 
Issue: 55 
Volume: 47 
Year: 2015 
Month: 11 
X-DOI: 10.1080/00036846.2015.1061648 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061648 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:6041-6053




Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu 
Author-X-Name-First: Huiming 
Author-X-Name-Last: Zhu 
Author-Name: Yawei Guo 
Author-X-Name-First: Yawei 
Author-X-Name-Last: Guo 
Author-Name: Wanhai You 
Author-X-Name-First: Wanhai 
Author-X-Name-Last: You 
Title: An empirical research of crude oil price changes and stock market in China: evidence from the structural breaks and quantile regression 
Abstract:
 This article investigates the relationship between real crude oil price
 changes and the Chinese real stock market at the industry level. Our study
 uses monthly data over the period 1994:03 to 2013:12. Based on
 input-output (IO) tables, this article will explore more details for the
 driving factors of sensitivity to oil price changes. We divide these
 driving factors into cost- and demand-side dependence. Empirical results
 reveal that sensitivity varies across different industries and periods
 based on structural breaks and asymmetric effects of oil price changes.
 Furthermore, some industries seemingly not directly affected by oil are
 sensitive to the real oil price changes. Finally, using a penalized
 quantile regression for panel data, we find that these two factors
 significantly affect lower, but not upper, quantile of sensitivity.
Journal: Applied Economics 
Pages: 6055-6074 
Issue: 56 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1064076 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6055-6074




Template-Type: ReDIF-Article 1.0
Author-Name: Afsin Sahin 
Author-X-Name-First: Afsin 
Author-X-Name-Last: Sahin 
Author-Name: Burak Dogan 
Author-X-Name-First: Burak 
Author-X-Name-Last: Dogan 
Author-Name:  Berument 
Author-X-Name-First:  
Author-X-Name-Last: Berument 
Title: Effectiveness of the reserve option mechanism as a macroeconomic prudential tool: evidence from Turkey 
Abstract:
 This article assesses the effectiveness of a novel macroprudential tool -
 the reserve option mechanism (ROM) - which Turkey's central bank developed
 during the post-2008 period and has employed to control the risk
 associated with excessive capital flows. We assess how capital flows have
 affected economic variable changes since the introduction and usage of the
 ROM. Empirical evidence gathered from Turkey suggests that the tool
 decreases the effect of capital flow on capital flow (positive shock to
 capital flow dies out faster or becomes less persistent) and diminishes
 the effects of capital flow shocks on exchange and interest rates.
Journal: Applied Economics 
Pages: 6075-6087 
Issue: 56 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1064077 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064077 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6075-6087




Template-Type: ReDIF-Article 1.0
Author-Name: Hanxiong Zhang 
Author-X-Name-First: Hanxiong 
Author-X-Name-Last: Zhang 
Author-Name: Robert Hudson 
Author-X-Name-First: Robert 
Author-X-Name-Last: Hudson 
Author-Name: Hugh Metcalf 
Author-X-Name-First: Hugh 
Author-X-Name-Last: Metcalf 
Author-Name: Viktor Manahov 
Author-X-Name-First: Viktor 
Author-X-Name-Last: Manahov 
Title: Identification of house price bubbles using user cost in a state space model 
Abstract:
 This article studies how much variation in <italic>house prices</italic>
 results from <italic>nonfundamental factors</italic>. We propose a
 relative valuation approach to quantifying a <italic>bubble</italic> in
 housing by incorporating the housing User Cost into a state space model.
 We find that UK <italic>house prices</italic> were undervalued from
 January 1995 to May 2001 and subsequently moved into a
 <italic>bubble</italic> over the period to October 2012. Our results
 support the bounded rationality hypothesis in the long run. However, we
 also find that the irrational and the rational expectation hypotheses can
 coexist in the short run when explosive <italic>bubbles</italic> are
 driven by <italic>price dynamics</italic>.
Journal: Applied Economics 
Pages: 6088-6101 
Issue: 56 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1064078 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6088-6101




Template-Type: ReDIF-Article 1.0
Author-Name:  Chung 
Author-X-Name-First:  
Author-X-Name-Last: Chung 
Author-Name: Karel Hrazdil 
Author-X-Name-First: Karel 
Author-X-Name-Last: Hrazdil 
Title: The impact of trading floor closure on market efficiency: evidence from the Toronto Stock Exchange 
Abstract:
 On 23 April 1997, the Toronto Stock Exchange closed its trading floor,
 making it at that time the second-largest stock exchange in North America
 to choose a purely electronic trading environment for its equities.
 Exploiting this natural experiment, we find that the move to electronic
 trading resulted in a higher cost of immediacy (bid-ask spreads),
 increased information asymmetry and an overall deterioration of
 short-horizon return predictability from past order flows, reducing the
 efficiency of price discovery. Our results suggest that the human element
 plays an important role in order execution and complements automated
 electronic trading by improving the efficiency of incorporating new
 information into prices.
Journal: Applied Economics 
Pages: 6102-6119 
Issue: 56 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1064079 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064079 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6102-6119




Template-Type: ReDIF-Article 1.0
Author-Name: Chun Jiang 
Author-X-Name-First: Chun 
Author-X-Name-Last: Jiang 
Author-Name: Yi Wang 
Author-X-Name-First: Yi 
Author-X-Name-Last: Wang 
Author-Name: Tsangyao Chang 
Author-X-Name-First: Tsangyao 
Author-X-Name-Last: Chang 
Author-Name: Chi-Wei Su 
Author-X-Name-First: Chi-Wei 
Author-X-Name-Last: Su 
Title: Are there bubbles in Chinese RMB-dollar exchange rate? Evidence from generalized sup ADF tests 
Abstract:
 This article uses recently developed generalized sup ADF (GSADF) unit root
 tests into the analysis of nominal RMB-dollar exchange rates bubbles.
 Based on the results from the GSADF tests, we find strong evidence of
 explosive behaviour in the nominal exchange rate and investigate two
 bubbles there. The first bubble is during 2005-2006 which is determined
 neither by the relative prices of traded goods nor the relative price of
 nontraded goods. The second bubble busts in 2008 during subprime crisis
 period, and which is determined by the relative prices of traded goods but
 not the relative price of nontraded goods. There is no bubble before 2005
 as the exchange rate is under fixed regime. As for this result, some
 expansionary monetary and fiscal policies are required in China since
 these are the most efficient and effective under a bubble burst scenario.
Journal: Applied Economics 
Pages: 6120-6135 
Issue: 56 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1064080 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064080 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6120-6135




Template-Type: ReDIF-Article 1.0
Author-Name:  Berdiev 
Author-X-Name-First:  
Author-X-Name-Last: Berdiev 
Author-Name: Cullen Pasquesi-Hill 
Author-X-Name-First: Cullen 
Author-X-Name-Last: Pasquesi-Hill 
Author-Name:  Saunoris 
Author-X-Name-First:  
Author-X-Name-Last: Saunoris 
Title: Exploring the dynamics of the shadow economy across US states 
Abstract:
 This article examines the dynamics of the shadow economy using data for 50
 US states over the period 1998-2008. Using a panel VAR model, we analyse
 the impulse response of the shadow economy to an orthogonal shock in
 capital tax rates, educational attainment, union participation and gross
 state product. We find evidence of significant dynamics underlying the
 relationship between the shadow economy and its determinants. The results
 remain robust to alternate measures of the determinants of the shadow
 economy, alternate causal ordering of the variables in the system and
 conditioning on the level of income in each state.
Journal: Applied Economics 
Pages: 6136-6147 
Issue: 56 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1064081 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064081 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6136-6147




Template-Type: ReDIF-Article 1.0
Author-Name: Rati Ram 
Author-X-Name-First: Rati 
Author-X-Name-Last: Ram 
Title: International income inequality, 2005-2011: what a difference 6 years can make 
Abstract:
 While much attention has recently been given to the rising inequality in
 high-income countries, particularly the US, inequality across countries
 has received less attention. Based on reports of the International
 Comparison Program, which provide the most accurate measures of PPP income
 at the country level, this study computes three highly recommended
 measures of intercountry income inequality for the years 2005 and 2011. A
 dramatic, and perhaps unprecedented, fall in intercountry inequality over
 the relatively short period of 6&nbsp;years is noted. As a correlate of
 the fall in intercountry inequality, aggregate PPP GDP for six major
 high-income countries is compared with that for three large developing
 countries, and the dramatic increase over the 6-year period in the ratio
 of the total GDP of the three developing countries to that for the six
 high-income countries is noted, thus extending, from the most accurate
 data, the theme of the 'rise of the South' articulated in <italic>Human
 Development Report 2013</italic>.
Journal: Applied Economics 
Pages: 6148-6154 
Issue: 56 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1064082 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064082 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6148-6154




Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova 
Author-X-Name-First: Petra 
Author-X-Name-Last: Maresova 
Author-Name: Blanka Klimova 
Author-X-Name-First: Blanka 
Author-X-Name-Last: Klimova 
Author-Name: Vojt&#x11b;ch Tu&#x10d;ek 
Author-X-Name-First: Vojt&#x11b;ch 
Author-X-Name-Last: Tu&#x10d;ek 
Title: Use of social networks in banking: a study in the Czech Republic 
Abstract:
 Social networks are becoming more and more important nowadays. Apart from
 regular users of the Internet, companies have started to use them in their
 business. Their potential is that a great number of people, future clients
 of big companies, use them on a daily basis. Thus, the aim of this article
 is to analyse the use of social networks in the banking sector of the
 Czech Republic, particularly with respect to customer support. The methods
 of this study include common data analysis and professional analysis.
 Common data analysis consists of the evaluation of public data from social
 networks and web pages of the selected bank institutions. The professional
 analysis is conducted by paid professional analytical tools that provide
 more detailed statistics. The findings of the study show that social
 networks are now well-established tools for the Czech banks to attract
 both their current and potential clients. The Czech banks seem to care
 about their clients by trying to meet their needs. Customer care and
 services provided, however, differ with type of bank.
Journal: Applied Economics 
Pages: 6155-6169 
Issue: 57 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1064083 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6155-6169




Template-Type: ReDIF-Article 1.0
Author-Name: K. Dengler 
Author-X-Name-First: K. 
Author-X-Name-Last: Dengler 
Title: Effectiveness of sequences of One-Euro-Jobs for welfare recipients in Germany 
Abstract:
 Empirical evidence reveals that German welfare recipients often
 participate in multiple active labour market programmes (ALMPs). However,
 evidence on the effectiveness of ALMPs exists mostly for single ALMP
 participations so far. This article evaluates the sequential participation
 in ALMPs for welfare recipients in Germany based on comprehensive
 administrative data to control for dynamic selection that arises in the
 evaluation of sequences. Using a dynamic causal model and an inflow sample
 of welfare recipients, the article analyses the effects of sequences of a
 public employment programme called One-Euro-Jobs on labour market
 outcomes. For female participants in One-Euro-Jobs in the first period,
 especially in West Germany, the results imply that participating in two
 consecutive One-Euro-Jobs compared with receiving only welfare benefits
 for two consecutive periods better facilitates integration into regular
 employment. Moreover, taking part in a One-Euro-Job directly after entry
 into welfare receipt is also more effective for participants in
 One-Euro-Jobs in the first period than taking part in a One-Euro-Job in a
 later period, especially for East German men (although not for West German
 women). However, I also find evidence of so-called programme careers and
 stepwise integration into regular employment.
Journal: Applied Economics 
Pages: 6170-6190 
Issue: 57 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1066488 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1066488 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6170-6190




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Author-Name: John Vaz 
Author-X-Name-First: John 
Author-X-Name-Last: Vaz 
Title: Directional accuracy, forecasting error and the profitability of currency trading: model-based evidence 
Abstract:
 Three models (the flexible-price monetary model, PPP and a univariate
 ARIMA model) are estimated for 45 currency pairs to find out if the
 profitability of forecasting-based currency trading is more related to the
 ability of the underlying model to predict the direction of change than
 the magnitude of the forecasting error. Theoretical considerations show
 that a correct prediction of the direction of change is neither a
 necessary nor a sufficient condition for a profitable trade. The results
 of the exercise indicate that profitability is more strongly correlated
 with directional accuracy than with the magnitude of the error.
Journal: Applied Economics 
Pages: 6191-6199 
Issue: 57 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1068917 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068917 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6191-6199




Template-Type: ReDIF-Article 1.0
Author-Name: Zied Ftiti 
Author-X-Name-First: Zied 
Author-X-Name-Last: Ftiti 
Author-Name: Khaled Guesmi 
Author-X-Name-First: Khaled 
Author-X-Name-Last: Guesmi 
Author-Name:  Nguyen 
Author-X-Name-First:  
Author-X-Name-Last: Nguyen 
Author-Name: Fr餩ric Teulon 
Author-X-Name-First: Fr餩ric 
Author-X-Name-Last: Teulon 
Title: Modelling inflation shifts and persistence in Tunisia: perspectives from an evolutionary spectral approach 
Abstract:
 This article examines the dynamic characteristics of the inflation rate in
 Tunisia over the last two decades, and particularly following the onset of
 the Arab Spring in 2010 which causes distortions in this country's
 monetary policy. We focus on the two specific dimensions of the Tunisian
 inflation rate: inflation regimes and persistence. We tackle this issue by
 adopting an evolutionary spectral approach, initially proposed by
 Priestley and Tong (1973). Our main findings indicate a stable inflation
 regime in the last 10&nbsp;years, with an average inflation rate of around
 5.5%. It is also found that the Tunisian inflation experienced a high
 degree of inertia which reflects its gradual responses to shocks. We also
 discuss the policy implications of these results, which typically require
 policy-makers to implement sound institutional reforms to reduce
 inflation.
Journal: Applied Economics 
Pages: 6200-6210 
Issue: 57 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1068918 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068918 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6200-6210




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriele Marconi 
Author-X-Name-First: Gabriele 
Author-X-Name-Last: Marconi 
Author-Name: Jo Ritzen 
Author-X-Name-First: Jo 
Author-X-Name-Last: Ritzen 
Title: Determinants of international university rankings scores 
Abstract:
 This article analyses the relationship between a university's score in
 international university rankings, its expenditure per student and other
 factors such as university mission, size and productive inefficiency. We
 develop an economic model of rankings and universities and estimate this
 model with data on universities classified in the top 200 by the Times
 Higher Education Supplement ranking of 2007. We find that the elasticity
 of a university's ranking score for the expenditure per student is between
 4% and 9%, and that there are no clear signs of inefficiency in production
 among the top 200 universities. University mission and size are also
 significant predictors of ranking score. These results are especially
 interesting given the relevance attributed to rankings by government
 officials, university directors and students.
Journal: Applied Economics 
Pages: 6211-6227 
Issue: 57 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1068921 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068921 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6211-6227




Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Palombi 
Author-X-Name-First: Silvia 
Author-X-Name-Last: Palombi 
Author-Name: Roger Perman 
Author-X-Name-First: Roger 
Author-X-Name-Last: Perman 
Author-Name: Christophe Tav鲡 
Author-X-Name-First: Christophe 
Author-X-Name-Last: Tav鲡 
Title: Regional growth and unemployment in the medium run: asymmetric cointegrated Okun's Law for UK regions 
Abstract:
 This article tests for the presence of a medium-run asymmetric Okun's Law
 relationship between regional output and regional unemployment rate in UK
 regions. The test is performed with a panel data version of the hidden
 cointegration technique suggested by Granger and Yoon. A novelty of the
 article is to combine the method of hidden cointegration with a panel data
 method of removing cross-sectional dependence. The medium-run Okun
 relationship for regions in the UK appears to confirm results found
 elsewhere in the literature on countries as a whole, although the
 coefficients tend to be smaller.
Journal: Applied Economics 
Pages: 6228-6238 
Issue: 57 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1068922 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068922 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6228-6238




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Huck 
Author-X-Name-First: Nicolas 
Author-X-Name-Last: Huck 
Title: Pairs trading: does volatility timing matter? 
Abstract:
 Pairs trading is a dollar-neutral trading strategy. Using the components
 of two major stock indices, the S&P 500 and the Nikkei 225, this article
 deals with the performance of a pairs trading system based on various
 pairs selection methods (distance, stationarity, cointegration) over a
 10-year period. On both markets, using a classical framework,
 cointegration appears superior and effective. On the U.S. market and also
 in Japan to a lower extent, pairs trading strategies exhibited an
 impressive performance during the 2008 financial crisis. Bearish periods
 are associated with a high level of the VIX index: the 'investor fear
 gauge'. Using a modified trading system, this article examines the link
 between pairs trading performance and volatility/VIX timing. It is shown
 that for the best selection technique (cointegration), timing volatility
 has no economic value in a pairs trading context.
Journal: Applied Economics 
Pages: 6239-6256 
Issue: 57 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1068923 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068923 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6239-6256




Template-Type: ReDIF-Article 1.0
Author-Name: Andr鳠Navarro-Galera 
Author-X-Name-First: Andr鳠
Author-X-Name-Last: Navarro-Galera 
Author-Name: Salvador Rayo-Cant󮠍
Author-X-Name-First: Salvador 
Author-X-Name-Last: Rayo-Cant󮠍
Author-Name: Juan Lara-Rubio 
Author-X-Name-First: Juan 
Author-X-Name-Last: Lara-Rubio 
Author-Name: Dionisio Buend𫑃arrillo 
Author-X-Name-First: Dionisio 
Author-X-Name-Last: Buend𫑃arrillo 
Title: Loan price modelling for local governments using risk premium analysis 
Abstract:
 Previous studies have highlighted the question of government loan interest
 as one of great current importance. Government borrowing levels are high,
 and reducing interest payments would generate savings to meet other
 spending needs and/or to lower taxation, thus supporting the
 sustainability of public finances. However, no previous study has
 presented a method for a local government to calculate its own credit risk
 and thus be in a position to negotiate lower interest rates on its
 borrowing. This article defines a financial model that enables local
 governments to estimate the interest rate payable on a bank loan, based on
 their credit risk premium, in accordance with the Basel II rules and the
 findings of our empirical study of large local governments.
Journal: Applied Economics 
Pages: 6257-6276 
Issue: 58 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1068924 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068924 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6257-6276




Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Pizzutilo 
Author-X-Name-First: Fabio 
Author-X-Name-Last: Pizzutilo 
Title: Isolating the systematic and unsystematic components of a single stock's (or portfolio's) standard deviation: a comment 
Abstract:
 In an article that recently appeared in this journal, Marshall (2015)
 argued that the systematic component of the SD of a stock or of a
 portfolio of stocks is its beta scaled by the SD of the market returns.
 She also contended that the beta mispredicts the actual systematic risk of
 a stock or of a portfolio of stocks. In this article, I dispute this
 conclusion, showing that it has been induced by an imperfection in the
 construction of the empirical application and by some misinterpretations
 of the results. A corrected replication of the empirical study of Marshall
 (2015) is provided, along with some comments. I conclude that both the
 beta and the systematic component in Marshall (2015) are effective
 measures of systematic risk.
Journal: Applied Economics 
Pages: 6277-6283 
Issue: 58 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1068925 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068925 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6277-6283




Template-Type: ReDIF-Article 1.0
Author-Name:  Razzak 
Author-X-Name-First:  
Author-X-Name-Last: Razzak 
Title: Wage, productivity and unemployment: microeconomics theory and macroeconomics data 
Abstract:
 We confront microeconomics theory with macroeconomics data. Unemployment
 results from two main micro-level decisions of workers and firms. Most of
 the efficiency wage and bargaining theories predict that over the business
 cycle, unemployment falls below its natural rate when the worker's real
 wage exceeds the reservation wage. However, these theories have weak
 empirical support. Firm's decision predicts that when the worker's real
 wage exceeds the marginal product of labour (MPL), unemployment increases
 above its natural rate. Accounting for this microeconomic decision helps
 explain almost all the fluctuations of US unemployment.
Journal: Applied Economics 
Pages: 6284-6300 
Issue: 58 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1068926 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068926 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6284-6300




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Otero-Gonzᬥz 
Author-X-Name-First: Luis 
Author-X-Name-Last: Otero-Gonzᬥz 
Author-Name: Miguel Ezcurra-P鲥z 
Author-X-Name-First: Miguel 
Author-X-Name-Last: Ezcurra-P鲥z 
Author-Name: Rub鮠Lado-Sestayo 
Author-X-Name-First: Rub鮠
Author-X-Name-Last: Lado-Sestayo 
Author-Name: Pablo DurᮭSantomil 
Author-X-Name-First: Pablo 
Author-X-Name-Last: DurᮭSantomil 
Title: The main determinants of subprime securitization in the Spanish RMBS securities 
Abstract:
 This article is a model to identify the determinants of subprime
 securitizations. In several countries, there is no classification of the
 underlying assets. Consequently, investors have fewer tools to identify
 which securitizations are subprime. Using a sample of mortgage
 securitization transactions issued in Spain from 1998 until the first half
 of 2009, we analyse the effects of a great securitization expansion.
 According to previous literature, we identify main determinants of
 residential mortgage-backed security default rate and construct a
 prediction model of default rate. By means of different probit models, our
 results show the importance of loan to value and seasoning, among other
 determinants, as predictive indicators of default rates. The results
 obtained point to more relaxed lending standards due to higher
 securitization levels. Our findings help to gain a more accurate
 perspective of the true effects of the mortgage securitization process and
 reinforce the role of certain determinants as default predictors in a
 context without a classification of underlying assets.
Journal: Applied Economics 
Pages: 6301-6316 
Issue: 58 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071468 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071468 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6301-6316




Template-Type: ReDIF-Article 1.0
Author-Name: Turki Abalala 
Author-X-Name-First: Turki 
Author-X-Name-Last: Abalala 
Author-Name: Robert Sollis 
Author-X-Name-First: Robert 
Author-X-Name-Last: Sollis 
Title: The Saturday effect: an interesting anomaly in the Saudi stock market 
Abstract:
 The vast majority of empirical research on calendar anomalies has studied
 financial markets in countries where the Western calendar is used. This
 article investigates day of the week effects in Saudi Arabia's stock
 market, where an Islamic calendar is used and where Saturday is the first
 working day of the week over the sample period considered. The Saudi stock
 market is the largest in the Gulf region, and we consider both total
 market data (the TASI index) and data for 15 sector indices. Our
 investigation reveals the existence of a positive Saturday effect, which
 contrasts with the results on first day of the week effects that are
 typically obtained for Western calendar markets.
Journal: Applied Economics 
Pages: 6317-6330 
Issue: 58 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071469 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071469 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6317-6330




Template-Type: ReDIF-Article 1.0
Author-Name: Galina Besstremyannaya 
Author-X-Name-First: Galina 
Author-X-Name-Last: Besstremyannaya 
Title: Heterogeneous effect of coinsurance rate on healthcare expenditure: generalized finite mixtures and matching estimators 
Abstract:
 The article proposes a combination of finite mixture models and matching
 estimators to account for heterogeneous and nonlinear effects of the
 coinsurance rate on healthcare expenditure. The analysis with panel data
 for adult Japanese consumers in 2008-2010 and for female consumers in
 2000-2010 demonstrates the presence of subpopulations with high, medium
 and low healthcare expenditure, and subpopulation membership is explained
 by lifestyle variables. Generalized finite mixtures provide adequate fit
 compared to loglinear model. Conditional average treatment effect
 estimations reveal the existence of nonlinear effects of the coinsurance
 rate in the subpopulation with high expenditure.
Journal: Applied Economics 
Pages: 6331-6361 
Issue: 58 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071470 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071470 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6331-6361




Template-Type: ReDIF-Article 1.0
Author-Name:  Brent 
Author-X-Name-First:  
Author-X-Name-Last: Brent 
Title: Valuing the prevention of elder abuse 
Abstract:
 We develop a framework for valuing cases of serious elder abuse. We use
 the preferences of the elderly who are abused, the victims, to help
 identify: what offenses are of concern, the seriousness of any particular
 offense and the value of preventing any particular offense. The variable
 revealing the valuations is the victim's willingness to prosecute in New
 York City police complaint reports. Using our framework we found that it
 took a loss of $38&nbsp;462 in order to be classed as a serious financial
 offense. With this monetary magnitude as a benchmark we were able to value
 nonfinancial serious offenses at up to $50&nbsp;000 per offense.
Journal: Applied Economics 
Pages: 6362-6373 
Issue: 58 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071471 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071471 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6362-6373




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Musumba 
Author-X-Name-First: Mark 
Author-X-Name-Last: Musumba 
Author-Name:  Mjelde 
Author-X-Name-First:  
Author-X-Name-Last: Mjelde 
Author-Name:  Adusumilli 
Author-X-Name-First:  
Author-X-Name-Last: Adusumilli 
Title: Remittance receipts and allocation: a study of three African countries 
Abstract:
 Remittances may influence household expenditures, poverty rates,
 development and investments in the receiving country. Using World Bank
 survey data from Ethiopia, Uganda and Kenya, the influence of remitters'
 and recipients' characteristics on remittance amounts and allocation is
 examined. Effects of the remitter-receiver characteristics on remittance
 amounts are generally similar between countries. Such similarities imply a
 potential similar effect of policies in these countries. Age, household
 income, frequency of communication, family relations with remitter and
 country the recipient resided in influence remittance allocation.
 Recipients in Ethiopia and Uganda are more likely to allocate remittance
 towards savings than those in Kenya.
Journal: Applied Economics 
Pages: 6375-6389 
Issue: 59 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071472 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071472 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6375-6389




Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale 
Author-X-Name-First: Tony 
Author-X-Name-Last: Caporale 
Title: Exogenous tax changes and interest rates: testing for Ricardian equivalence using an efficient markets model 
Abstract:
 This article tests the Ricardian theory (i.e., Barro 1974) using Mishkin's
 (1981, 1982) efficient markets model of interest rates. Employing Romer
 and Romer's (2010) measure exogenous tax changes, I am able to test
 whether the U.S. bond market reacts in a Keynesian or Ricardian manner to
 exogenous tax policy changes. This helps avoid the endogeneity problems
 associated with measuring the interest rate effects of deficits and
 provides a cleaner test of the pure Ricardian thought experiment. I find a
 significant negative relationship between tax changes and interest rates
 which is inconsistent with the Ricardian model and support the Keynesian
 crowding out framework.
Journal: Applied Economics 
Pages: 6390-6394 
Issue: 59 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071473 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071473 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6390-6394




Template-Type: ReDIF-Article 1.0
Author-Name:  Baharumshah 
Author-X-Name-First:  
Author-X-Name-Last: Baharumshah 
Author-Name: Siew-Voon Soon 
Author-X-Name-First: Siew-Voon 
Author-X-Name-Last: Soon 
Author-Name:  Wohar 
Author-X-Name-First:  
Author-X-Name-Last: Wohar 
Title: Parity reversion in the Asian real exchange rates: new evidence from the local-persistent model 
Abstract:
 This article investigates the time-series properties of 13 Asian real
 exchange rates (RERs) vis-୶is the US dollar. The half-life point
 estimates drawn from the local-persistent model are all less than
 2&nbsp;years, with a finite upper bound. There is no evidence to indicate
 that the Asian financial crisis has altered the speed of the purchasing
 power parity (PPP) adjustments. We find that the persistence of RERs over
 the last three decades remains unchanged in majority of the cases. Given
 the fairly rapid speed of adjustments and their corresponding confidence
 intervals, we conclude that the PPP puzzle does not exist in these
 countries.
Journal: Applied Economics 
Pages: 6395-6408 
Issue: 59 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071474 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071474 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6395-6408




Template-Type: ReDIF-Article 1.0
Author-Name: Cristian Barra 
Author-X-Name-First: Cristian 
Author-X-Name-Last: Barra 
Author-Name: Giovanna Bimonte 
Author-X-Name-First: Giovanna 
Author-X-Name-Last: Bimonte 
Author-Name: Pietro Spennati 
Author-X-Name-First: Pietro 
Author-X-Name-Last: Spennati 
Title: Did fiscal institutions affect Wagner's law in Italy during 1951-2009 period? An empirical analysis 
Abstract:
 In this article, we test Wagner's assumption of the one-sided directional
 flow moving from economic growth to public spending in Italy for the
 1951-2009 period. We pay particular attention to the impact of certain
 regime shifts related to changes in Italian budget regulations and
 procedures and the relevance of fiscal institutions to the fiscal
 performance equation, i.e. the public spending-national income nexus. The
 Error Correction Model is estimated to measure short-run dynamic effects
 and the long-run equilibrium between the two time series. The empirical
 evidence suggests that Wagner's law is supported. In regard to policy
 implications, we find that public spending reacted less to positive
 changes in economic growth when the strengthening of the Ministry of
 Finance occurred in 1997 (Ciampi's reform). Some sensitivity analyses
 confirm our empirical evidence.
Journal: Applied Economics 
Pages: 6409-6424 
Issue: 59 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071475 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071475 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6409-6424




Template-Type: ReDIF-Article 1.0
Author-Name:  Alhashel 
Author-X-Name-First:  
Author-X-Name-Last: Alhashel 
Author-Name:  Alojayan 
Author-X-Name-First:  
Author-X-Name-Last: Alojayan 
Title: Drivers of price reaction to rights issue announcements in the Kuwait Stock Exchange 
Abstract:
 This study examines the drivers behind stock price reactions to
 announcements of rights issues by firms listed on the Kuwaiti Stock
 Exchange for the period 2003-2013. We find higher cumulative abnormal
 returns for firms that undertake larger issues, with the issue size
 reflecting the availability of favourable investment opportunities and
 their potential positive impact on firms' earnings. We also document a
 positive price reaction in firms that are affiliated with a family group.
 We interpret this as evidence that the proceeds of the rights offering
 would be employed effectively when the firm is controlled by a family
 firm. No evidence was found for the price pressure and pricing effects.
Journal: Applied Economics 
Pages: 6425-6437 
Issue: 59 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071476 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071476 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6425-6437




Template-Type: ReDIF-Article 1.0
Author-Name: Li Dai 
Author-X-Name-First: Li 
Author-X-Name-Last: Dai 
Author-Name: Patrick Minford 
Author-X-Name-First: Patrick 
Author-X-Name-Last: Minford 
Author-Name: Peng Zhou 
Author-X-Name-First: Peng 
Author-X-Name-Last: Zhou 
Title: A DSGE model of China 
Abstract:
 We use available methods for testing macro models to evaluate a model of
 China over the period from Deng Xiaoping's reforms up until the crisis
 period. Bayesian ranking methods are heavily influenced by controversial
 priors on the degree of price/wage rigidity. When the overall models are
 tested by Likelihood or Indirect Inference methods, the New Keynesian
 model is rejected in favour of one with a fair-sized competitive product
 market sector. This model behaves quite a lot more 'flexibly' than the New
 Keynesian.
Journal: Applied Economics 
Pages: 6438-6460 
Issue: 59 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071477 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071477 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6438-6460




Template-Type: ReDIF-Article 1.0
Author-Name:  Beckman 
Author-X-Name-First:  
Author-X-Name-Last: Beckman 
Author-Name: Gregory DeAngelo 
Author-X-Name-First: Gregory 
Author-X-Name-Last: DeAngelo 
Author-Name:  Smith 
Author-X-Name-First:  
Author-X-Name-Last: Smith 
Title: Dictator monopolies and essential goods: experimental evidence 
Abstract:
 Monopolists set prices and if the good is unessential this may place the
 consumer in an uncomfortable position. But if the good is essential the
 consumer faces a pay-to-live or -die choice. Dictator and ultimatum games
 are superficially similar in that one game offers the right of refusal,
 while the other does not. The dictator monopoly is, however, not a game,
 and behaviour could be radically different in the market environment
 versus game environment. We recast the dictator game as a dictator
 monopoly experiment and find that the fairness characteristic of the game
 evaporates quickly as rounds progress.
Journal: Applied Economics 
Pages: 6461-6478 
Issue: 59 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1071478 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071478 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6461-6478




Template-Type: ReDIF-Article 1.0
Author-Name: Simeon Coleman 
Author-X-Name-First: Simeon 
Author-X-Name-Last: Coleman 
Author-Name: Vitor Leone 
Author-X-Name-First: Vitor 
Author-X-Name-Last: Leone 
Title: An investigation of regime shifts in UK commercial property returns: a time series analysis 
Abstract:
 The random-walk hypothesis, <italic>vis-୶is</italic> asset price,
 suggests that prices traded in a market cannot be predicted based on
 historical information. Employing unsecuritized UK commercial property
 returns, we analyse this hypothesis by investigating regime shifts or
 multiple changes in persistence in the series. Our results uncover regime
 shifts in both the aggregate and sector-specific data. Specifically, the
 shifts are less frequent in the <italic>Industrial</italic> sector,
 compared to the <italic>Office, Retail</italic> and Aggregate returns
 data. We highlight some implications for academics, practitioners and
 regulators.
Journal: Applied Economics 
Pages: 6479-6492 
Issue: 60 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1080805 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080805 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6479-6492




Template-Type: ReDIF-Article 1.0
Author-Name: Soodabeh Sarafrazi 
Author-X-Name-First: Soodabeh 
Author-X-Name-Last: Sarafrazi 
Author-Name: Shawkat Hammoudeh 
Author-X-Name-First: Shawkat 
Author-X-Name-Last: Hammoudeh 
Author-Name: Mehmet Balcilar 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Balcilar 
Title: Interactions between real economic and financial sides of the US economy in a regime-switching environment 
Abstract:
 This objective of this study is to examine the linkages between real
 (economic) and financial variables in the United States in a
 regime-switching environment that accounts explicitly for high volatility
 in the stock market and high stress in financial markets. Since the
 linearity test shows that the linear model should be rejected, we employ
 the Markov-switching VECM to examine the same objective using the Bayesian
 Markov-chain Monte Carlo method. The regime-dependent impulse response
 function (RDIRF) highlights the increasing importance of the financial
 sector of the economy during stress periods. The responses and their
 fluctuations are significantly greater in the high-volatility regime than
 in the low-volatility regime.
Journal: Applied Economics 
Pages: 6493-6518 
Issue: 60 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1080806 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080806 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6493-6518




Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Zanella 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Zanella 
Author-Name: Peter Oyelere 
Author-X-Name-First: Peter 
Author-X-Name-Last: Oyelere 
Author-Name: Shahadut Hossain 
Author-X-Name-First: Shahadut 
Author-X-Name-Last: Hossain 
Title: Are costs really sticky? Evidence from publicly listed companies in the UAE 
Abstract:
 This article measures the degree of adjustment between operating revenues
 and costs for publicly listed companies in the United Arab Emirates (UAE).
 Traditional cost models assume that variable costs change proportionally
 in response to an upward or downward fluctuation in demand. However, in
 recent years, such an assumption has been questioned by a variety of
 papers from the economics and accounting fields. Typically, cost
 stickiness is defined as costs decreasing by less than 1% when sales
 decrease by 1%, while reacting closer to the proportion of change when
 sales increase. This study, unlike the vast majority of the literature,
 did not find cost stickiness in the UAE after using panel data regression
 analysis. The main explanation is that UAE has mostly expatriate labour
 force that does not have the typical benefits of employment protection
 legislation (EPL) available in other national jurisdictions. EPL is a main
 reason that costs adjustments during decreasing sales is curbed due to the
 associated costs of firing employees.
Journal: Applied Economics 
Pages: 6519-6528 
Issue: 60 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1080807 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080807 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6519-6528




Template-Type: ReDIF-Article 1.0
Author-Name: Marlies Kornfeld 
Author-X-Name-First: Marlies 
Author-X-Name-Last: Kornfeld 
Author-Name: Carsten Ochsen 
Author-X-Name-First: Carsten 
Author-X-Name-Last: Ochsen 
Title: Teachers' versus parental choice and the tracking distribution of students: a natural experiment 
Abstract:
 This article studies the secondary school track choice and considers to
 what extent parents' and teachers' assessment of students diverge. We take
 advantage of a reform in the German state of North Rhine-Westphalia (NRW)
 in 2006. The reform replaced parents' choice about their children's
 secondary school type by a binding teacher recommendation. Our data
 comprise class-level information on all public primary schools in the
 state. We find that teachers tend to recommend higher school types than
 parents. However, more precise analysis shows that this effect can be
 limited to districts with above average proportion of immigrants.
Journal: Applied Economics 
Pages: 6529-6542 
Issue: 60 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1080808 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080808 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6529-6542




Template-Type: ReDIF-Article 1.0
Author-Name: Ghassen El-Montasser 
Author-X-Name-First: Ghassen 
Author-X-Name-Last: El-Montasser 
Author-Name: Roula Inglesi-Lotz 
Author-X-Name-First: Roula 
Author-X-Name-Last: Inglesi-Lotz 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Convergence of greenhouse gas emissions among G7 countries 
Abstract:
 The convergence of air pollutants is a major concern for policymakers
 since all the countries pursue the goal of allocating the emissions
 equally internationally in the future. Hence, the examination of the
 existence of convergence is important for the climate change protection of
 the earth. In this article, greenhouse gas (GHG) emissions convergence
 among the G7 countries for the period between 1990 and 2011 is examined
 using the pairwise testing technique proposed by that aims to analyse
 probabilistic convergence across a large number of cross-sectional units.
 Next, we proceed with multivariate tests for stability and the existence
 of unit roots. Finally, the analysis is complemented by the use of the
 panel stationarity test accounting for structural changes as proposed by
 Carrion-i-Silvestre <italic>et al</italic>. (2005) test. Overall, the
 results do not confirm the hypothesis of convergence for the countries in
 question, although, more recently, the countries have shown a small
 decline in their GHG emissions.
Journal: Applied Economics 
Pages: 6543-6552 
Issue: 60 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1080809 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080809 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6543-6552




Template-Type: ReDIF-Article 1.0
Author-Name:  Hauge 
Author-X-Name-First:  
Author-X-Name-Last: Hauge 
Author-Name:  Prieger 
Author-X-Name-First:  
Author-X-Name-Last: Prieger 
Title: Evaluating the impact of the American Recovery and Reinvestment Act's BTOP on broadband adoption 
Abstract:
 The American Recovery and Reinvestment Act's Broadband Technology
 Opportunities Program (BTOP) spent $4.7 billion during 2009-2013 to,
 <italic>inter alia</italic>, increase broadband adoption in underserved
 communities. We characterize the BTOP grants and examine the impact of the
 awards on broadband adoption. Econometric specifications controlling for
 award endogeneity related to observed and unobserved county-level factors
 find that spending is apparently associated with increased broadband
 adoption. Further investigation, however, reveals that the impacts of
 spending are nonlinear and even nonmonotonic over the range of
 county-level BTOP spending in the data. Controlling for trends to reduce
 the potential for spurious correlation between spending and outcomes
 removes most of the significance of the results. We conclude with three
 lessons for policymakers derived from the uncertain outcomes of BTOP
 spending found in our exploration.
Journal: Applied Economics 
Pages: 6553-6579 
Issue: 60 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1080810 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080810 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6553-6579




Template-Type: ReDIF-Article 1.0
Author-Name: Yi Wu 
Author-X-Name-First: Yi 
Author-X-Name-Last: Wu 
Author-Name: Alan Tidwell 
Author-X-Name-First: Alan 
Author-X-Name-Last: Tidwell 
Title: Inflation-hedging properties of regional Chinese real estate market: evidence from 35 cities in China 
Abstract:
 The housing markets in China have been gaining considerable interest from
 investors, but the inflation-hedging characteristics of housing remain
 ambiguous. Based on Chinese city-level data, this study evaluates
 different inflation-hedging properties in eastern, middle and western real
 estate markets using panel vector autoregressive (PVAR) models. Findings
 suggest middle real estate markets afford the best hedging opportunities
 for expected inflation, which is robust considering housing market
 heterogeneity, financial crisis and the 2010 purchase restriction order.
 Moreover, hedging efficacy of anticipated inflation differs between
 markets with low and high supply-demand ratio.
Journal: Applied Economics 
Pages: 6580-6598 
Issue: 60 
Volume: 47 
Year: 2015 
Month: 12 
X-DOI: 10.1080/00036846.2015.1080811 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080811 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6580-6598




Template-Type: ReDIF-Article 1.0
Author-Name:  Ferreira 
Author-X-Name-First:  
Author-X-Name-Last: Ferreira 
Author-Name:  Oliveira 
Author-X-Name-First:  
Author-X-Name-Last: Oliveira 
Title: Portfolio efficiency analysis with SFA: the case of PSI-20 companies 
Abstract:
 This study aimed to assess the technical efficiency (TE) of individual
 companies and their respective sectors that are traded on the Portuguese
 stock market. We accomplished this by combining the internal input
 variables (e.g., 'market value and return') with exogenous variables
 (e.g., 'interest income', 'depreciation', 'cost of goods', 'employees' and
 'net sales') into a Stochastic Frontier Analysis (SFA) model. The TE of
 the PSI-20 (Portuguese Stock Index) was estimated using factors that
 affect efficiency variability. The main advantage of using the SFA
 approach is its potential to discriminate between measurement error and
 systematic inefficiencies in the estimation process. The results
 demonstrated that TE is higher for enterprises in the industrial,
 construction and distribution sectors, whereas the commercial banking
 sector has the lowest TE scores. The 'employees' and 'depreciation' are
 the variables which most contribute to stock market inefficiency.
Journal: Applied Economics 
Pages: 1-6 
Issue: 1 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073837 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073837 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:1-6




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-ki Min 
Author-X-Name-First: Chung-ki 
Author-X-Name-Last: Min 
Author-Name: Taek-seon Roh 
Author-X-Name-First: Taek-seon 
Author-X-Name-Last: Roh 
Author-Name: Sangmee Bak 
Author-X-Name-First: Sangmee 
Author-X-Name-Last: Bak 
Title: Growth effects of leisure tourism and the level of economic development 
Abstract:
 This study examines (1) whether leisure tourism can contribute to economic
 growth and (2) if it does, whether its growth effects are constant across
 levels of economic development. Leisure tourism differs from business
 tourism in the causal relation with economic growth. In addition, the
 natural and heritage-related resources for leisure tourism are limited and
 not reproducible. This notion has a significant implication for the
 relationship between the growth effects of leisure tourism and the level
 of economic development. Thus, the current study focuses on leisure
 tourism and controls for the effects of business tourism. As an economy
 grows, the growth effects of leisure tourism are expected to diminish due
 to a lack of continued productivity improvement in the tourism industry.
 The empirical findings in this research reveal that leisure tourism
 contributes to economic growth at an early stage of economic development,
 but its contribution becomes weaker as the economy develops.
Journal: Applied Economics 
Pages: 7-17 
Issue: 1 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073838 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073838 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:7-17




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss 
Author-X-Name-First: Stephen 
Author-X-Name-Last: Devadoss 
Author-Name: Jeff Luckstead 
Author-X-Name-First: Jeff 
Author-X-Name-Last: Luckstead 
Title: Can a corrupt ruling party win a re-election through vote buying? 
Abstract:
 In many developing countries, it is common for electoral candidates to use
 embezzled money to buy votes. We develop a dynamic model to analyse the
 trade-off between economic performance and free handouts resulting from
 corruption on an incumbent party's chances of being re-elected. The
 results show, because voters anticipate handouts from the politicians,
 politicians engage in corrupt behaviour early in the election cycle while
 minimizing unemployment and maximizing vote buying at the end of the
 election cycle.
Journal: Applied Economics 
Pages: 18-23 
Issue: 1 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073839 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073839 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:18-23




Template-Type: ReDIF-Article 1.0
Author-Name:  Satria 
Author-X-Name-First:  
Author-X-Name-Last: Satria 
Author-Name:  Harun 
Author-X-Name-First:  
Author-X-Name-Last: Harun 
Author-Name:  Taruna 
Author-X-Name-First:  
Author-X-Name-Last: Taruna 
Title: The Macro-prudential aspects of loan-to-deposit-ratio-linked reserve requirement 
Abstract:
 Micro-prudential regulation is sometimes more focused on the health of the
 financial institutions and pays less attention to the objective of
 sustainable intermediation and financial stability in the long run. A
 macro-prudential policy is formulated to reduce this myopic tendency. This
 article shows analytically how Loan-to-Deposit-Ratio (LDR)-linked Reserve
 Requirement (RR) can be used to apply counter-cyclical measures in banking
 industry by providing disincentive mechanism when a bank operates outside
 the preferred operational corridor. At the lower limit of LDR, a
 requirement of higher RR can push banks to extent more loans in order to
 support economic development in a period of economic bust. At the upper
 limit of LDR, a requirement of higher RR and/or capital can also provide
 disincentive to slow down its investment activities in an economic booming
 period and manage liquidity risk better.
Journal: Applied Economics 
Pages: 24-34 
Issue: 1 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073840 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073840 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:24-34




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Drescher 
Author-X-Name-First: Christian 
Author-X-Name-Last: Drescher 
Author-Name: Bernhard Herz 
Author-X-Name-First: Bernhard 
Author-X-Name-Last: Herz 
Title: What determines simultaneous asset bubbles? An empirical analysis 
Abstract:
 The recent global financial crisis demonstrated that the simultaneous
 collapse of asset bubbles in different countries is a major challenge for
 monetary policy. In order to evaluate determinants of these simultaneous
 asset bubbles, we detect rational asset bubbles in corporate equity and
 real estate markets worldwide using forward recursive right-sided ADF
 tests. Then we create dummy variables for simultaneous asset bubbles and
 analyse potential determinants using gravity models and spatial economics.
 Our empirical analysis suggests that simultaneous asset bubbles depend
 positively upon potential asset demand, capital account openness, monetary
 conditions, cultural similarities and negatively upon informational
 frictions and exchange rate flexibility. These findings imply that
 monetary policy can impede the probability of simultaneous asset bubbles
 by ensuring sound monetary conditions and choosing a flexible exchange
 regime.
Journal: Applied Economics 
Pages: 35-51 
Issue: 1 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073841 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073841 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:35-51




Template-Type: ReDIF-Article 1.0
Author-Name: Per-Olof Bjuggren 
Author-X-Name-First: Per-Olof 
Author-X-Name-Last: Bjuggren 
Title: Marginal q revisited 
Abstract:
 Two measures of firm investment behaviour used in the empirical research
 are Tobin&#xb4;s q (average q) and marginal q. The marginal q is a more
 recently introduced measure than Tobin&#xb4;s q and is not as well known.
 This article aims to demonstrate the advantages of using marginal q as a
 performance measure and is a response to an earlier critical article
 (Berglund, 2011) claiming an elusiveness bias. The pro arguments made in
 response are that the claimed elusiveness is not a problem. Furthermore,
 many of the evaluation problems inherent in the empirical use of
 Tobin&#xb4;s q, like estimation of replacement cost of assets, can be
 avoided. From a pure theoretical standpoint, it has long been recognized
 that marginal q is superior to an average measure of investment behaviour
 such as Tobin&#xb4;s q.
Journal: Applied Economics 
Pages: 52-58 
Issue: 1 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073842 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073842 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:52-58




Template-Type: ReDIF-Article 1.0
Author-Name: P. Withey 
Author-X-Name-First: P. 
Author-X-Name-Last: Withey 
Author-Name:  Lantz 
Author-X-Name-First:  
Author-X-Name-Last: Lantz 
Author-Name:  Ochuodho 
Author-X-Name-First:  
Author-X-Name-Last: Ochuodho 
Title: Economic costs and impacts of climate-induced sea-level rise and storm surge in Canadian coastal provinces: a CGE approach 
Abstract:
 We estimated the economic costs and impacts of future sea-level rise (SLR)
 and storm surge due to climate change in Canada's coastal provinces using
 regional, dynamic computable general equilibrium models that track
 provincial welfare, GDP, trade, prices and inputs over the 2009-2054
 period. We also assessed the economic costs of coastal adaptation
 investments, to determine whether such investments can be justified on
 economic grounds. Results indicated that SLR and storm surge could cost
 Canada in the range of $4.6-$25.5 billion in present value welfare, and
 between $53.7 and $108.7 billion in present value GDP. We found
 significant variation in costs and impacts across coastal provinces, with
 some provinces such as Newfoundland and Labrador experiencing only
 marginal costs/impacts, and others such as British Columbia experiencing
 costs as high as $21 billion in welfare over the period. Coastal
 adaptation investments were supported on economics grounds. Overall, this
 study provides the first (and preliminary) provincial economic impact
 estimates of climate-induced SLR and storm surge, as well as adaptation
 investments, in Canada. Additional research is needed to refine the
 analysis in order to produce reliable estimates that can be used to guide
 coastal adaptation policies in Canada.
Journal: Applied Economics 
Pages: 59-71 
Issue: 1 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073843 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073843 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:59-71




Template-Type: ReDIF-Article 1.0
Author-Name: K. Nithin 
Author-X-Name-First: K. 
Author-X-Name-Last: Nithin 
Author-Name: Rathin Roy 
Author-X-Name-First: Rathin 
Author-X-Name-Last: Roy 
Title: Finance commission of India's assessments: a political economy contention between expectations and outcomes 
Abstract:
 We explore the normative fiscal assessments of the Finance Commission (FC)
 of India, and realisation of fiscal policy with regard to Central Finances
 over the period 1990-2012. We employ the Theil's inequality coefficient to
 investigate the magnitude of assessment errors and its partitioning in to
 bias, slope and random components. Furthermore, this article also
 evaluates the efficiency, biasedness and persistence of forecast errors.
 The robustness of the efficiency results are confirmed with the
 application of maximum entropy bootstrap. The objective of this study is
 to examine the structural basis on which FCs make their awards rather than
 examining the predictability of the forecasts. The story of FC's
 assessments reflects an interesting political economy theatre of
 contention between aspirations and outcomes. Our key findings are as
 follows: First, source of errors for assessments of tax revenue, nontax
 revenue, interest payments, defence revenue expenditure, plan revenue
 expenditure and fiscal deficit is principally due to random component.
 However, the errors in the remaining economic parameters originate due to
 systematic components i.e. mean and slope errors. Second, the expenditure
 side predictability is lower than the revenue side predictability.
Journal: Applied Economics 
Pages: 73-88 
Issue: 2 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073844 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073844 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:73-88




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Law 
Author-X-Name-First: Philip 
Author-X-Name-Last: Law 
Author-Name: Desmond Yuen 
Author-X-Name-First: Desmond 
Author-X-Name-Last: Yuen 
Title: Professional scepticism in two economies with cultural differences and the public interest: evidence from China and the United States 
Abstract:
 Auditors' professional scepticism is a topical concern for the audit
 profession and public interest. This study examines professional
 scepticism among fraud auditors in the forensic accounting profession in
 China (CN) and the United States (US). Data are collected from 373 and 401
 CN and US auditors, respectively, in two economies with cultural
 differences. The multinomial logistic regression results indicate that
 both CN and US fraud auditors have higher levels of professional
 scepticism than general auditors do. There are no significant differences
 in traits between CN and US fraud auditors. High-ranking fraud auditors
 have higher levels of professional scepticism than junior-ranking fraud
 auditors for both CN and US auditors. The results of our sensitivity
 analysis validate the main results and indicate the findings' robustness.
 Results support the normative pillar of the institutional theory (Scott
 1995) that asserts actors (fraud auditors) of institutions would share
 common norms and beliefs in a social system because they are rooted in
 professional affiliations (accounting bodies) (DiMaggio and Powell 1983).
 Our findings contribute to the literature in the arena of the interests of
 the public and the economy.
Journal: Applied Economics 
Pages: 89-106 
Issue: 2 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073845 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073845 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:89-106




Template-Type: ReDIF-Article 1.0
Author-Name: M Niaz Asadullah 
Author-X-Name-First: M Niaz 
Author-X-Name-Last: Asadullah 
Author-Name: Jinnat Ara 
Author-X-Name-First: Jinnat 
Author-X-Name-Last: Ara 
Title: Evaluating the long-run impact of an innovative anti-poverty programme: evidence using household panel data 
Abstract:
 Using a four-round panel data set from the first phase of the Challenging
 the Frontiers of Poverty Reduction - Targeting the Ultra Poor (CFPR - TUP)
 programme of BRAC, we investigate whether a one-off transfer of livestock
 assets improves well-being of the very poor women in Bangladesh. Programme
 impact is assessed on a wide range of monetary and nonmonetary measures of
 well-being using difference-in-difference (DD) as well as matching
 methods. We find significant positive long-term impact on food security,
 household savings, assets and participation in microfinance. Participant
 women are less likely to be in distress occupation and more into
 self-employment. However, the long-term effect is much smaller for most
 outcomes when compared to short- and medium-run impacts. We conclude by
 discussing the significance of the institutional and regional context for
 the observed time path of estimated programme effect.
Journal: Applied Economics 
Pages: 107-120 
Issue: 2 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073846 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073846 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:107-120




Template-Type: ReDIF-Article 1.0
Author-Name: Sascha Kolaric 
Author-X-Name-First: Sascha 
Author-X-Name-Last: Kolaric 
Author-Name: Florian Kiesel 
Author-X-Name-First: Florian 
Author-X-Name-Last: Kiesel 
Author-Name: Dirk Schiereck 
Author-X-Name-First: Dirk 
Author-X-Name-Last: Schiereck 
Title: Return patterns of South Korean stocks following large price shocks 
Abstract:
 This study tests the market efficiency of the South Korean stock market by
 examining returns on stocks of the constituents of the KOSPI 50 from 2000
 to 2014 following large 1-month price decreases and increases. An
 exponential GARCH (EGARCH) event study framework is used to analyse the
 stock returns. The results show that large price shocks, positive and
 negative, are likely to be followed by positive market returns. Moreover,
 the results show an increase in the beta of stocks in the years following
 a large price shock. The overall results therefore support the Uncertain
 Information Hypothesis. However, beginning in 2008, return patterns more
 closely reflect those hypothesised by the Efficient Market Hypothesis,
 possibly due to increased participation by international investors. The
 observed returns following large price increases and decreases can be
 partially explained by changes in the Korean won to US dollar exchange
 rate and the trading behaviour of foreign investors.
Journal: Applied Economics 
Pages: 121-132 
Issue: 2 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076144 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:121-132




Template-Type: ReDIF-Article 1.0
Author-Name:  Lynch 
Author-X-Name-First:  
Author-X-Name-Last: Lynch 
Author-Name: John Curtis 
Author-X-Name-First: John 
Author-X-Name-Last: Curtis 
Title: The effects of wind generation capacity on electricity prices and generation costs: a Monte Carlo analysis 
Abstract:
 We use Monte Carlo analysis to examine the potential of increased
 renewable generation to provide a hedge against variability in energy
 prices and costs. Fuel costs, electricity demand and wind generation are
 allowed to vary and a unit commitment and economic dispatch algorithm is
 employed to produce cost-minimizing generation schedules under different
 levels of installed wind capacity. Increased wind capacity reduces the
 mean and the variance of production costs but only the variance of
 electricity prices. Wind generators see their market revenues increase
 while consumer payments and fossil generator profits do not considerably
 vary as wind capacity increases. Risk aversion is captured by considering
 the conditional value-at-risk for both consumers and producers. The
 optimal level of wind generation increases as risk aversion increases due
 to the potential of wind to act as a hedge against very high electricity
 prices in high fuel price scenarios.
Journal: Applied Economics 
Pages: 133-151 
Issue: 2 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076145 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076145 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:133-151




Template-Type: ReDIF-Article 1.0
Author-Name: Azhar Mohamad 
Author-X-Name-First: Azhar 
Author-X-Name-Last: Mohamad 
Author-Name: Aziz Jaafar 
Author-X-Name-First: Aziz 
Author-X-Name-Last: Jaafar 
Author-Name: John Goddard 
Author-X-Name-First: John 
Author-X-Name-Last: Goddard 
Title: Short selling and exchange-traded funds returns: evidence from the London Stock Exchange 
Abstract:
 An exchange-traded fund (ETF) is a security that tracks a basket of
 stocks. An ETF investor gains immediate exposure to the basket, by taking
 either a long or short position on this instrument. Both hedgers and
 speculators can short ETFs, making the informational content of increases
 in ETF short interest difficult to interpret. Using high-frequency (daily)
 short-interest data for ETFs traded on the London Stock Exchange between
 June 2006 and April 2010, we examine the price impact on ETFs of increases
 in short interest. Contrary to most of the previous empirical evidence for
 individual stocks, we find that large increases in ETF short interest are
 associated with subsequent over-performance relative to a benchmark index
 and this pattern is most pronounced during pre-financial crisis period.
Journal: Applied Economics 
Pages: 152-164 
Issue: 2 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076146 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:152-164




Template-Type: ReDIF-Article 1.0
Author-Name: L. Kermiche 
Author-X-Name-First: L. 
Author-X-Name-Last: Kermiche 
Author-Name: N. Vuillermet 
Author-X-Name-First: N. 
Author-X-Name-Last: Vuillermet 
Title: Weather derivatives structuring and pricing: a sustainable agricultural approach in Africa 
Abstract:
 The objective of this article is to calculate the price of weather
 derivatives for different African countries with payout depending on
 temperature. A new approach for computing degree day contracts is shown
 and gives another scale to the numerical relevance and practical
 implementation of the findings. With historical data for each country, a
 stochastic process based on continuous time with mean reversion
 representing the evolution of the temperature is determined. Focusing on
 the Monte Carlo simulation method, the price of each contract and the
 potential implications to solve several aspects of the threatened African
 economy are presented.
Journal: Applied Economics 
Pages: 165-177 
Issue: 2 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076147 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076147 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:165-177




Template-Type: ReDIF-Article 1.0
Author-Name: Minhua Yang 
Author-X-Name-First: Minhua 
Author-X-Name-Last: Yang 
Author-Name: Hui Zhu 
Author-X-Name-First: Hui 
Author-X-Name-Last: Zhu 
Title: Corrigendum 
Journal: Applied Economics 
Pages: 178-178 
Issue: 2 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1073877 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073877 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:178-178




Template-Type: ReDIF-Article 1.0
Author-Name: Koichi Yamaura 
Author-X-Name-First: Koichi 
Author-X-Name-Last: Yamaura 
Author-Name: Allen M. Featherstone 
Author-X-Name-First: Allen M. 
Author-X-Name-Last: Featherstone 
Title: Estimating the effect of monopsony power on elasticity estimates 
Abstract:
 Love and Shumway (1994) developed a nonparametric deterministic test for
 monopsony market power using a normalized quadratic restricted cost
 function with one input for which the firm has potential market power.
 This research examines monopsony power using Lau's Hessian identity
 relationships based on the empirical properties of duality theory. Lau's
 Hessian identity shows the Hessian matrices are equal under pure
 competition using an unrestricted profit function, restricted profit
 function and production function approach. We examine how market power
 changes in the monopsony case using Lau's Hessian identity relationships.
 Results show that there is a difference between the unrestricted and
 restricted profit function results under monopsony power. The important
 implication is that if an input or output is potentially in a market
 subject to market power, that input or output should be modelled as a
 fixed input or output to correctly recover the underlying technology.
Journal: Applied Economics 
Pages: 179-189 
Issue: 3 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076148 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076148 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:179-189




Template-Type: ReDIF-Article 1.0
Author-Name: Cassandra R. Cole 
Author-X-Name-First: Cassandra R. 
Author-X-Name-Last: Cole 
Author-Name: J. Bradley Karl 
Author-X-Name-First: J. Bradley 
Author-X-Name-Last: Karl 
Title: The effect of product diversification strategies on the performance of health insurance conglomerates 
Abstract:
 The conglomerate organizational structure of health insurers suggests two
 distinct methods of product diversification - the first is firm-level
 diversification, or diversification within individual affiliates, and the
 second is conglomerate-level diversification, or diversification across
 affiliates of the conglomerate. We hypothesize that using both firm- and
 conglomerate-level diversification may magnify the costs or benefits of
 diversification on the financial performance of the conglomerate. Our
 results confirm this hypothesis and suggest a positive relation between
 health insurer financial performance and the use of both product line
 diversification methods. Our results not only contribute to the body of
 literature related to corporate diversification but are also important to
 policymakers and all health insurance market participants as portions of
 the Affordable Care Act continue to be implemented.
Journal: Applied Economics 
Pages: 190-202 
Issue: 3 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076149 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076149 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:190-202




Template-Type: ReDIF-Article 1.0
Author-Name: Jørgen Laake 
Author-X-Name-First: Jørgen 
Author-X-Name-Last: Laake 
Author-Name: Abraham Zhang 
Author-X-Name-First: Abraham 
Author-X-Name-Last: Zhang 
Title: Joint optimization of strategic fleet planning and contract analysis in tramp shipping 
Abstract:
 Maritime transportation is one of the most capital-intensive industries.
 Fleet planning is vital but challenging to shipowners because the industry
 is extremely volatile. Relatively few papers have studied strategic fleet
 planning in tramp shipping, which is intertwined with contract analysis
 and different from that in industrial or liner shipping. This article
 develops a mixed-integer programming model, and it is the first of its
 kind that jointly optimizes strategic fleet planning and the selections of
 long-term and spot contracts in tramp shipping. The model can be used to
 determine the best mix of long-term and spot contracts for a given fleet
 and/or to find the optimal fleet size and mix for a set of contracts. It
 can be used as a basis for a fleet renewal programme, informing decisions
 on when to sell, whether to buy old or new ships, and when to charter in
 or out vessels. A numerical example is given to illustrate how to use the
 model to evaluate different operations strategies.
Journal: Applied Economics 
Pages: 203-211 
Issue: 3 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076151 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076151 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:203-211




Template-Type: ReDIF-Article 1.0
Author-Name: Liang Song 
Author-X-Name-First: Liang 
Author-X-Name-Last: Song 
Author-Name: Harry M. Kaiser 
Author-X-Name-First: Harry M. 
Author-X-Name-Last: Kaiser 
Title: An economic evaluation of market development programmes for US dairy products 
Abstract:
 'This study measured the effectiveness of US dairy export promotion
 programmes on increasing foreign demand and enhancing producers' revenues.
 An import demand equation based on panel data was used to test whether
 export promotion has a positive and significant impact on US dairy
 exports. The effects of various promotion scenarios on the dairy market
 were then simulated, and benefit-cost ratios (BCRs) for these programmes
 were estimated. There were three key findings. First, the combined effort
 of public and private dairy export promotion expenditures had a positive
 and statistically significant impact on demand for US dairy products in
 the world market. The findings indicated that export promotion stimulated
 total dairy exports by 4.14 billion pounds, on average, per year, which
 represented 55.8% of total exports. Second, US dairy export promotion has
 been highly profitable for the nation's dairy farmers. The calculated
 BCRs, based on assumed elasticity of supply, ranged from a low of 8.54 for
 the most elastic assumption to a high of 30.12. Third, from an optimality
 standpoint, dairy farmers are underinvesting in export promotion. The
 marginal BCRs ranged from a low of 3.79 to a high of 15.22, which means
 that, at the margin, increasing export promotion expenditures would be
 profitable for dairy farmers.
Journal: Applied Economics 
Pages: 212-221 
Issue: 3 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076152 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076152 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:212-221




Template-Type: ReDIF-Article 1.0
Author-Name: H. Sato 
Author-X-Name-First: H. 
Author-X-Name-Last: Sato 
Title: Favouritism towards the poor and a discontinuous tax structure 
Abstract:
 This article aims to theoretically clarify two points. First, even though
 the government shows favouritism to the poor and wants to exempt
 low-income taxpayers and to secure the necessary income tax revenue by
 taxing only high-income taxpayers, the government nevertheless ends up
 taxing the poor. This is in opposition to favouritism and arises because
 of the government's inability to observe the individual taxpayer's income
 levels. Second, even without observing each taxpayer's income level, if
 favouritism is sufficiently strong, then the government can
 discontinuously resolve such unintentional taxation.
Journal: Applied Economics 
Pages: 222-226 
Issue: 3 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076153 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076153 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:222-226




Template-Type: ReDIF-Article 1.0
Author-Name: Aviral K. Tiwari 
Author-X-Name-First: Aviral K. 
Author-X-Name-Last: Tiwari 
Author-Name: Claudiu T. Albulescu 
Author-X-Name-First: Claudiu T. 
Author-X-Name-Last: Albulescu 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Time-frequency relationship between US output with commodity and asset prices 
Abstract:
 Commodity and asset prices have a well-documented effect on economic
 growth as manifested through various channels. At the same time, the
 business cycle influences the commodity and asset prices. Whereas
 empirical evidence on the effect of commodity and asset prices on the
 long-run economic growth is ambiguous, most of the previous researches
 highlight a positive correlation in the short run. The aim of this article
 is to disentangle the short- and long-run co-movements between US
 historical business cycles and commodity and asset prices over the period
 1859-2013. For this purpose, we use a time-frequency approach and we test
 the historical influence of oil, gold, housing and stock prices over the
 output growth. In contrast to other studies, we control for the effect of
 other prices and monetary conditions, using the wavelet partial coherency.
 In line with the previous works, we discover that co-movements between
 economic growth and commodity and assets prices manifest especially in the
 short run. We also find that stock returns and housing prices have a more
 powerful effect on the US economic growth rate than the oil and gold
 prices. The long-run co-movements are documented especially around the
 World War II. Finally, when controlling for the influence of the interest
 rate, inflation and other commodity and asset prices, co-movements become
 weaker in the short run. In general, the oil and housing prices lead the
 GDP growth, the US output leads the gold prices, while there is no clear
 causality direction between business cycle and stock prices.
Journal: Applied Economics 
Pages: 227-242 
Issue: 3 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1076154 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076154 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:227-242




Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Casalin 
Author-X-Name-First: Fabrizio 
Author-X-Name-Last: Casalin 
Author-Name: Enzo Dia 
Author-X-Name-First: Enzo 
Author-X-Name-Last: Dia 
Title: The dynamic interrelation between external finance and bank credit 
Abstract:
 This article studies the interrelation among the volumes of bonds and
 stocks issued by non-financial firms, and levels of industrial loans
 outstanding in the United States. These aggregates are co-integrated and
 characterized by asymmetric volatility. Their co-movements are driven by
 financial indicators such as the yield spread, size of loan market and
 market volatility. Bond and stock issuance are positively correlated, and
 even more so during the expansionary phase of the cycle. Loans outstanding
 and bond issuance are negatively correlated, and their substitutability
 increases in periods of economic downturn, highlighting the importance of
 bond markets to mitigate credit crunches.
Journal: Applied Economics 
Pages: 243-259 
Issue: 3 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1078442 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078442 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:243-259




Template-Type: ReDIF-Article 1.0
Author-Name: H. Arthur Luo 
Author-X-Name-First: H. Arthur 
Author-X-Name-Last: Luo 
Author-Name: Jen-Chi Cheng 
Author-X-Name-First: Jen-Chi 
Author-X-Name-Last: Cheng 
Author-Name: Chu-Ping C. Vijverberg 
Author-X-Name-First: Chu-Ping C. 
Author-X-Name-Last: Vijverberg 
Title: Monetary shocks, equity returns and volatility: a firm-level panel data analysis 
Abstract:
 This article studies the impact of monetary policy shocks on equity
 returns and their volatility among nine industries and their affiliated
 firms in the United States. We use an extension of the traditional CAPM as
 the analytical framework and approximate policy shocks with the unexpected
 component of the federal funds rate. Data on the characteristics of firms
 and industries are obtained from Compustat and the Center for Research in
 Security Prices, covering a sample period from 1987 to 2009. Our results
 clearly show that responses to policy shocks vary by industry and across
 firms. Furthermore, credit availability matters in certain industries, and
 small, financially constrained, and bank-dependent firms are found to be
 more vulnerable to unexpected federal funds rate shocks.
Journal: Applied Economics 
Pages: 261-275 
Issue: 4 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1078443 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078443 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:261-275




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Khang 
Author-X-Name-First: Kenneth 
Author-X-Name-Last: Khang 
Author-Name: Tao-Hsien Dolly King 
Author-X-Name-First: Tao-Hsien Dolly 
Author-X-Name-Last: King 
Author-Name: Hung Nguyen 
Author-X-Name-First: Hung 
Author-X-Name-Last: Nguyen 
Title: What determines outstanding corporate debt mix? Evidence from fractional multinomial logit estimation 
Abstract:
 This study employs the fractional multinomial logit setting proposed by
 Papke and Wooldridge (1996) to examine factors driving the choice among
 nonbank private (144A) debt, bank loans and public debt made by 988
 nonfinancial firms during 1993-2007. We document that the majority of
 firm-level factors have persistent effects on corporate outstanding debt
 mix across economic conditions. We also highlight the importance of
 macroeconomic variables on firms' borrowing decisions as predicted by
 Diamond (1991). Finally, we document a substitution effect among debt
 financing sources due to credit rating downgrades, which is inconsistent
 with Rauh and Sufi (2010).
Journal: Applied Economics 
Pages: 276-291 
Issue: 4 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1078445 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078445 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:276-291




Template-Type: ReDIF-Article 1.0
Author-Name: Duane W. Rockerbie 
Author-X-Name-First: Duane W. 
Author-X-Name-Last: Rockerbie 
Title: Fighting as a profit maximizing strategy in the National Hockey League: more evidence 
Abstract:
 This article estimates the effect of fighting in hockey games on
 attendance in the National Hockey League (NHL) over the 1997-1998 through
 2009-2010 seasons. After estimating a system of equations developed from a
 model of a profit-maximizing club owner, it was found that fighting had a
 small negative effect on attendance implying that encouraging fighting on
 the ice is not a profit-maximizing strategy. The results are quite robust
 when incorporating capacity constraints on attendance and exogenous ticket
 pricing. Other factors that determine club performance and market size
 were found to significantly affect attendance. The empirical results also
 suggest that NHL club owners are maximizing profit.
Journal: Applied Economics 
Pages: 292-299 
Issue: 4 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1078446 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078446 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:292-299




Template-Type: ReDIF-Article 1.0
Author-Name: Beatriz Cu鬬ar-Fernᮤez 
Author-X-Name-First: Beatriz 
Author-X-Name-Last: Cu鬬ar-Fernᮤez 
Author-Name: Yolanda Fuertes-Call鮠
Author-X-Name-First: Yolanda 
Author-X-Name-Last: Fuertes-Call鮠
Author-Name: Carlos Serrano-Cinca 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Serrano-Cinca 
Author-Name: Bego񡠇uti鲲ez-Nieto 
Author-X-Name-First: Bego񡠍
Author-X-Name-Last: Guti鲲ez-Nieto 
Title: Determinants of margin in microfinance institutions 
Abstract:
 Microfinance institutions (MFIs) lend to the poor. However, microfinance
 clients suffer from high interest rates, a type of poverty penalty. This
 article analyses the margin determinants in MFIs. A banking model has been
 adapted to microfinance. This model has been tested using 9-year panel
 data. Some factors explaining bank margin also explain MFI margin, with
 operating costs being the most important factor. Specific microfinance
 factors are donations and legal status, as regulated MFIs can collect
 deposits. It has also been found that MFIs operating in countries with a
 high level of financial inclusion have low margins.
Journal: Applied Economics 
Pages: 300-311 
Issue: 4 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1078447 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078447 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:300-311




Template-Type: ReDIF-Article 1.0
Author-Name: Harry M. Kaiser 
Author-X-Name-First: Harry M. 
Author-X-Name-Last: Kaiser 
Title: An economic analysis of the Cattlemen's Beef Promotion and Research Board demand-enhancing programmes 
Abstract:
 The research reported here addressed two objectives. The first objective
 was to measure the overall impact of the Cattlemen's Beef Board as well as
 eight-specific advertising, promotion and research activities on US beef
 demand. The second objective was to compute marginal benefit-cost ratios
 (BCRs) for the eight individual checkoff activities and for the overall
 programme. The results indicated that Cattlemen's Beef Board's Promotion
 activities increased total domestic beef demand by 15.7 billion pounds in
 total, or 2.1 billion pounds per year between 2006 and 2014. Collectively,
 the overall marginal BCR for all Cattlemen's Beef Board activities was
 $11.20.
Journal: Applied Economics 
Pages: 312-320 
Issue: 4 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1078448 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078448 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:312-320




Template-Type: ReDIF-Article 1.0
Author-Name: Tobias Hiller 
Author-X-Name-First: Tobias 
Author-X-Name-Last: Hiller 
Title: Excluded coalitions and the distribution of power in parliaments 
Abstract:
 In this article, we introduce a new value for cooperative games. This
 value is based on the Shapley (1953) value and takes into account that
 players exclude coalitions with other players. One example of such
 exclusions are the coalition statements of parliamentary parties. A case
 study demonstrates the application of the new value for these situations.
Journal: Applied Economics 
Pages: 321-330 
Issue: 4 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1078449 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078449 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:321-330




Template-Type: ReDIF-Article 1.0
Author-Name: Rudra P. Pradhan 
Author-X-Name-First: Rudra P. 
Author-X-Name-Last: Pradhan 
Author-Name: Mak B. Arvin 
Author-X-Name-First: Mak B. 
Author-X-Name-Last: Arvin 
Author-Name: Neville R. Norman 
Author-X-Name-First: Neville R. 
Author-X-Name-Last: Norman 
Author-Name: Sara E. Bennett 
Author-X-Name-First: Sara E. 
Author-X-Name-Last: Bennett 
Title: Financial depth, internet penetration rates and economic growth: country-panel evidence 
Abstract:
 The article investigates causal relationships between internet penetration
 rates, financial depth and per capita economic growth in the Next-11
 countries. Using panel vector autoregressive (VAR) approaches, our
 empirical results show that these variables are cointegrated. Moreover, we
 find bidirectional causality between internet penetration rates and
 economic growth, and between financial depth and economic growth in the
 short run.
Journal: Applied Economics 
Pages: 331-343 
Issue: 4 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1078450 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078450 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:331-343




Template-Type: ReDIF-Article 1.0
Author-Name: Faik Bilgili 
Author-X-Name-First: Faik 
Author-X-Name-Last: Bilgili 
Author-Name: Nadide S. Tülüce 
Author-X-Name-First: Nadide S. 
Author-X-Name-Last: Tülüce 
Author-Name: Ibrahim Do&#x11f;an 
Author-X-Name-First: Ibrahim 
Author-X-Name-Last: Do&#x11f;an 
Author-Name: H. Hilal Ba&#x11f;l&#x131;tas 
Author-X-Name-First: H. Hilal 
Author-X-Name-Last: Ba&#x11f;l&#x131;tas 
Title: The causality between FDI and sector-specific production in Turkey: evidence from threshold cointegration with regime shifts 
Abstract:
 This article considers bidirectional nonlinear cointegration relation
 between FDI and industrial output in Turkey. The data cover the monthly
 period 2005:1-2013:10 for the time series of total industrial production,
 36 sub-industrial sectors' production and FDI. Following nonlinear
 threshold cointegration and VECMs, the article yields that (i) total
 industrial production and nine sub-industrial productions have positive
 long-run impact on FDI with significant error corrections, (ii) six
 sub-industrial productions have short-term influence on FDI, (iii) FDI has
 long-run positive impulse on total industrial production and nine
 sub-industrial productions with some significant error corrections and
 (iv) FDI affects four sub-industrial productions in the short run as well
 as in the long run. The results of VECMs from (i) also reveal that the all
 short-term adjustment parameters are found significant and powerful in 10
 typical regimes (Regime-1s) and in 5 extreme regimes (Regime-2s). Finally,
 the outcome of VECMs from (iii) yields that short-term adjustment
 parameters are found significant and powerful in two typical regimes and
 in four extreme regimes. Eventually, considering FDI's positive impact in
 the short and long run, this article suggests that policymakers promote
 specifically the FDI inflows to the sectors of intermediate goods,
 manufacture of beverages, manufacture of rubber and plastic and
 manufacture of other nonmetallic mineral products.
Journal: Applied Economics 
Pages: 345-360 
Issue: 5 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1078451 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078451 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:345-360




Template-Type: ReDIF-Article 1.0
Author-Name: Marie Bessec 
Author-X-Name-First: Marie 
Author-X-Name-Last: Bessec 
Author-Name: Julien Fouquau 
Author-X-Name-First: Julien 
Author-X-Name-Last: Fouquau 
Author-Name: Sophie Meritet 
Author-X-Name-First: Sophie 
Author-X-Name-Last: Meritet 
Title: Forecasting electricity spot prices using time-series models with a double temporal segmentation 
Abstract:
 The French wholesale market is set to expand in the next few years under
 European pressure and national decisions. In this article, we assess the
 forecasting ability of several classes of time-series models for
 electricity wholesale spot prices at a day-ahead horizon in France.
 Electricity spot prices display a strong seasonal pattern, particularly in
 France, given the high share of electric heating in housing during winter
 time. To deal with this pattern, we implement a double temporal
 segmentation of the data. For each trading period and season, we use a
 large number of specifications based on market fundamentals: linear
 regressions, Markov-switching (MS) models and threshold models with a
 smooth transition. An extensive evaluation on French data shows that
 modelling each season independently leads to better results. Among
 nonlinear models, MS models designed to capture the sudden and
 fast-reverting spikes in the price dynamics yield more accurate forecasts.
 Finally, pooling forecasts give more reliable results.
Journal: Applied Economics 
Pages: 361-378 
Issue: 5 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1080801 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080801 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:361-378




Template-Type: ReDIF-Article 1.0
Author-Name: Tanveer Ahsan 
Author-X-Name-First: Tanveer 
Author-X-Name-Last: Ahsan 
Author-Name: Wang Man 
Author-X-Name-First: Wang 
Author-X-Name-Last: Man 
Author-Name: Muhammad Azeem Qureshi 
Author-X-Name-First: Muhammad Azeem 
Author-X-Name-Last: Qureshi 
Title: Mean reverting financial leverage: theory and evidence from Pakistan 
Abstract:
 Grounding concepts of the two competing theories of capital structure
 (trade-off theory, pecking order theory) are quite opposite to each other.
 Trade-off theory claims that there is an optimal (target) capital
 structure and firms try to achieve that optimal (target) point. Whereas
 pecking order theory argues that there is no optimal (target) capital
 structure but the firms follow a specific pattern of financing. Using the
 two competing theoretic frameworks, this study applies Fisher-type panel
 unit root test to an unbalanced panel data of 13&nbsp;115 firm-year
 observations of nonfinancial firms listed on Karachi Stock Exchange
 Pakistan spread over 38&nbsp;years (1973-2010). Overall panel test
 results, for short-term, long-term, as well as total leverage support
 trade-off financing behaviour while individual firm results do not.
 Individual firm results show that only 16% of the firms have short-term
 target, 25% of the firms have long-term target and 12% of the firms have
 total target leverage ratio. Further, industry results explain that most
 of the industries do have target leverage ratios and classification of
 data into profitable and lossmaking firm-year observations explains that
 profitable firms clearly follow trade-off financing behaviour while the
 results for lossmaking firms do not support trade-off financing behaviour.
 Our study indicates that it is important for the government to ensure
 policies to develop well-balanced financial markets and to improve
 accountability systems.
Journal: Applied Economics 
Pages: 379-388 
Issue: 5 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1080802 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080802 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:379-388




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Meyer 
Author-X-Name-First: Andrew 
Author-X-Name-Last: Meyer 
Author-Name: Guanyi Yang 
Author-X-Name-First: Guanyi 
Author-X-Name-Last: Yang 
Title: How much versus who: which social norms information is more effective? 
Abstract:
 We conduct an experiment to investigate how different types of information
 about social norms affect individuals' stated contributions to a specific
 pro-environment program, a student 'green fee', in the context of a
 referendum. Compared to students that receive no information about peer
 contributions, on average, students that receive information about the
 dollar value range of contributions at peer institutions contribute less
 while students that learn about the high percentage of students voting
 'yes' on green fee programs at peer institutions contribute more. The
 results are economically significant as the absolute values of both
 effects represent approximately 25% of average contributions. These
 results suggest that information about participation rates can be more
 effective than information about dollar amounts in encouraging
 contributions to environmental initiatives. Of interest to stated
 preference researchers, we find that results do not change when
 controlling for self-selection into survey completion.
Journal: Applied Economics 
Pages: 389-401 
Issue: 5 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1080803 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080803 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:389-401




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Sultan Bin-Sariman 
Author-X-Name-First: Ahmed Sultan 
Author-X-Name-Last: Bin-Sariman 
Author-Name: Azwadi Ali 
Author-X-Name-First: Azwadi 
Author-X-Name-Last: Ali 
Author-Name: Mohd Nazli Mohd Nor 
Author-X-Name-First: Mohd Nazli Mohd 
Author-X-Name-Last: Nor 
Title: Board of directors' quality and firms' debt financing: the moderating effect of insider ownership - evidence from Omani firms 
Abstract:
 This study aims to examine the direct effects of board of directors'
 quality and insider ownership on firms' capital structure and the
 moderating effect of insider ownership on the relationship between board
 of directors' quality and firms' capital structure. The sample of this
 study consists of the time period 2005-2011. The final sample consists of
 535 firm-year observations of public nonfinancial firms listed on the
 Muscat Securities Market (MSM). The hypotheses are tested using a random
 effects model. The results reveal that the coefficient sign on the board
 of directors' quality is as predicted, but the coefficient sign is
 insignificant. Further, the results show that insider ownership is
 positively associated with leverage at the significant level of 10%,
 suggesting that the inside substantial shareholders employ higher
 leverage. With regard to the moderating effect of insider ownership, the
 findings show that the effect of the board of directors' quality-leverage
 relationship becomes negative and stronger with increasing insider
 ownership.
Journal: Applied Economics 
Pages: 402-410 
Issue: 5 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1080804 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080804 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:402-410




Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Congregado 
Author-X-Name-First: Emilio 
Author-X-Name-Last: Congregado 
Author-Name: Jes&uacute;s Iglesias 
Author-X-Name-First: Jes&uacute;s 
Author-X-Name-Last: Iglesias 
Author-Name: Jos頍ar𨁍illᮠ
Author-X-Name-First: Jos頍ar𨀍
Author-X-Name-Last: Millᮠ
Author-Name: Concepci󮠒omᮠ
Author-X-Name-First: Concepci󮠍
Author-X-Name-Last: Romᮠ
Title: Incidence, effects, dynamics and routes out of overqualification in Europe: a comprehensive analysis distinguishing by employment status 
Abstract:
 This study aims to improve our understanding of overqualification by
 incorporating distinctions in employment status (i.e. self-employed
 workers, private employees and public employees) in the analysis of the
 incidence, effects, dynamics and routes out of overqualification. To this
 end, we apply discrete choice - ordered and nonordered - and count models
 to the data obtained from the <italic>European Community Household
 Panel</italic> for the EU-15. Our results indicate that the incidence of
 overqualification varies by employment status, where self-employed workers
 report the lowest occurrence. Furthermore, this analysis suggests that
 overqualification is a permanent phenomenon and demonstrates that
 successful pathways out of overqualification differ by employment status.
 The implications of these results for education and labour market policies
 are also discussed.
Journal: Applied Economics 
Pages: 411-445 
Issue: 5 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1083080 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083080 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:411-445




Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan 
Author-X-Name-First: Saroja 
Author-X-Name-Last: Selvanathan 
Author-Name: E.A. Selvanathan 
Author-X-Name-First: E.A. 
Author-X-Name-Last: Selvanathan 
Author-Name: Saad Albalawi 
Author-X-Name-First: Saad 
Author-X-Name-Last: Albalawi 
Author-Name: Moazzem Hossain 
Author-X-Name-First: Moazzem 
Author-X-Name-Last: Hossain 
Title: Meat and fish consumption patterns in Saudi Arabia 
Abstract:
 This study analyses the demand for meat (beef, chicken and lamb) and fish
 in Saudi Arabia in a system-wide framework using data for the period
 1985-2010. A preliminary data analysis reveals that, in Saudi Arabia, the
 relative consumption of beef, chicken and fish has a positive growth,
 while lamb has a negative growth. The average relative price growth rates
 of beef, chicken and fish are negative, while that of lamb is positive.
 The expenditure shares of beef, chicken and fish have increased while that
 of lamb has fallen. The estimation results of the demand system reveal
 that there is an autonomous trend out of lamb into beef, chicken and fish.
 The implied income elasticities indicate that beef, lamb and fish are
 considered to be luxuries, while chicken is a necessity. The demand for
 all meat products and fish are price inelastic. These elasticities are key
 inputs for policy analysts in terms of devising policies in relation to
 meat production, meat imports, taxation and food security issues in Saudi
 Arabia. The usefulness of the implied elasticities is demonstrated by
 simulating the consumption of beef, chicken, lamb and fish under various
 policy scenarios.
Journal: Applied Economics 
Pages: 446-460 
Issue: 5 
Volume: 48 
Year: 2016 
Month: 1 
X-DOI: 10.1080/00036846.2015.1083081 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083081 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:446-460




Template-Type: ReDIF-Article 1.0
Author-Name: Saeed Ghavidelfar 
Author-X-Name-First: Saeed 
Author-X-Name-Last: Ghavidelfar 
Author-Name: Asaad Y. Shamseldin 
Author-X-Name-First: Asaad Y. 
Author-X-Name-Last: Shamseldin 
Author-Name: Bruce W. Melville 
Author-X-Name-First: Bruce W. 
Author-X-Name-Last: Melville 
Title: Estimation of the effects of price on apartment water demand using cointegration and error correction techniques 
Abstract:
 Water price is a key instrument in regulating water demand in the
 residential sector. Many empirical studies have assessed the effects of
 price through quantifying the price elasticity of water demand. However,
 most of these studies have mainly focused on the single-family housing
 rather the multifamily housing. An in-depth understanding of the price
 elasticity of multifamily housing water demand is paramount for water
 planners in order to properly manage water use in the fast growing
 intensive housing developments in urban areas. This study investigates
 both the long-term and short-term price elasticities of water demand in
 the residential apartments in Auckland central city. Using 6&nbsp;years of
 monthly time series data, the price elasticities were estimated through
 cointegration and error correction methods. The results showed that the
 price elasticities of water demand were  - 0.14 and  - 0.12 in the short
 term and the long term, respectively. The price is inelastic yet negative
 and statistically significant, thus it can play a role in demand
 management.
Journal: Applied Economics 
Pages: 461-470 
Issue: 6 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083082 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083082 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:461-470




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Li 
Author-X-Name-First: Yu 
Author-X-Name-Last: Li 
Author-Name: Peipei Mao 
Author-X-Name-First: Peipei 
Author-X-Name-Last: Mao 
Author-Name: Yanming Zhang 
Author-X-Name-First: Yanming 
Author-X-Name-Last: Zhang 
Title: Empirical research on the different innovation engine between China and US manufacturing using an improved method 
Abstract:
 Most studies arrive at controversial conclusions about the relationship
 between firm size and technological innovation. Industrial differences and
 subjective model design are generally considered the primary cause. In
 static comparisons across industries, dynamic industrial changes are
 ignored, but this might lead to differing results when attempting to
 identify the driving forces of evolutionary change in an industrial
 environment. This study applies nonparametric regression methods with an
 expansive industry grouping to overcome the industry-difference
 interference and empirical model error, typifying traditional studies.
 First, a comparative analysis of the forces driving US and Chinese
 manufacturing is performed. Results indicate that US and Chinese
 manufacturing are in different industrial growth stages. Chinese
 manufacturing takes the traditional elements and R&D input as its main
 driving factors, which require objectively, expansive scale of enterprise,
 therefore showing characteristic Schumpeterian innovation. US
 manufacturing is driven by both R&D and non-R&D inputs; so it can maintain
 continuous innovation through cooperative networks under conditions of
 constant or contracting firm size.
Journal: Applied Economics 
Pages: 471-482 
Issue: 6 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083083 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:471-482




Template-Type: ReDIF-Article 1.0
Author-Name: Callum Jones 
Author-X-Name-First: Callum 
Author-X-Name-Last: Jones 
Author-Name: Mariano Kulish 
Author-X-Name-First: Mariano 
Author-X-Name-Last: Kulish 
Title: A graphical representation of an estimated DSGE model 
Abstract:
 We write a New Keynesian model as an aggregate demand curve and an
 aggregate supply curve, relating inflation to output growth. The graphical
 representation shows how structural shocks move aggregate demand and
 supply simultaneously. We estimate the curves on US data from 1948 to 2010
 and study two recessions: the 2001 recession and the Great Recession of
 2008-2009. The Great Recession is explained by a collapse of aggregate
 demand driven by adverse preference and permanent technology shocks, and
 expectations of low inflation.
Journal: Applied Economics 
Pages: 483-489 
Issue: 6 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083084 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083084 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:483-489




Template-Type: ReDIF-Article 1.0
Author-Name: Winston Moore 
Author-X-Name-First: Winston 
Author-X-Name-Last: Moore 
Author-Name: Adrian Glean 
Author-X-Name-First: Adrian 
Author-X-Name-Last: Glean 
Title: Foreign exchange reserve adequacy and exogenous shocks 
Abstract:
 One of the traditional benchmarks in international macroeconomics is that
 a country should maintain reserves that can cover at least 12 weeks of
 imports. The notion of reserve adequacy, however, is not static and is
 intimately associated with the occurrence of financial crises as well as
 exogenous shocks, with many observers using the reduction in reserves
 below this benchmark as a sign of fragility. This article provides a
 benefit-cost type approach to evaluating reserve adequacy. The benefits of
 holding reserves are evaluated using a dynamic random effects probit model
 of financial crises while the cost of reserve holdings (output loss due to
 an over-investment in reserves) is obtained from a panel growth equation.
 Using the methodology outlined above, the study finds that in small
 states, the optimal holding of foreign exchange reserves is approximately
 25 weeks of imports, approximately 13 weeks higher than the international
 rule-of-thumb. This estimate of optimal reserve holdings is interrelated
 with the economic characteristics of the country, particularly its fiscal
 stance. Indeed, this article finds that countries with a prudent public
 expenditure management framework in place are able to hold a smaller stock
 of reserves without necessarily impacting the expected growth for the
 country.
Journal: Applied Economics 
Pages: 490-501 
Issue: 6 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083085 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083085 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:490-501




Template-Type: ReDIF-Article 1.0
Author-Name: Prateek Sharma 
Author-X-Name-First: Prateek 
Author-X-Name-Last: Sharma 
Author-Name:  Vipul 
Author-X-Name-First:  
Author-X-Name-Last: Vipul 
Title: Economic benefits of using realized covariance forecasts in risk-based portfolios 
Abstract:
 This article examines the economic benefit of using the realized
 covariance matrix forecasts, for constructing the risk-based portfolios.
 We use the two-scale realized covariance estimator (TSC), the jump robust
 two-scale realized covariance estimator (RTSC) and the realized bipower
 covariance estimator (BPC), to forecast the daily realized covariance
 matrix. Using these covariance matrix forecasts, we implement three
 risk-based portfolios: the global minimum variance portfolio, the equal
 risk contribution portfolio and the most diversified portfolio. There is
 evidence that the portfolio performance improves by using TSC or RTSC
 estimators as compared to the daily-returns-based estimator. The
 performance gains are robust to the choice of risk-based portfolio
 strategy, the degree of investor's relative risk-aversion, the market
 conditions and the choice of time intervals.
Journal: Applied Economics 
Pages: 502-516 
Issue: 6 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083086 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083086 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:502-516




Template-Type: ReDIF-Article 1.0
Author-Name: Marc K. Chan 
Author-X-Name-First: Marc K. 
Author-X-Name-Last: Chan 
Author-Name: Simon S. Kwok 
Author-X-Name-First: Simon S. 
Author-X-Name-Last: Kwok 
Title: Capital account liberalization and dynamic price discovery: evidence from Chinese cross-listed stocks 
Abstract:
 We analyse the effects of a recent financial reform (Shanghai-Hong Kong
 Stock Connect) that enables cross-market investment between Hong Kong and
 Shanghai stock exchanges. Using a VECM, we find that the reform
 announcement considerably narrows the equilibrium level of price disparity
 and strengthens the price comovement of shares that are cross-listed in
 both markets. The estimated equilibrium relationship is in support of the
 relative law of one price. We find that both markets adjust in response to
 a disequilibrium in price disparity, leading to a sizeable error
 correction activity. The Shanghai market contributes to approximately
 two-thirds of the price discovery process. Competition and informativeness
 of trading affect the relative role of price discovery in each market.
 Finally, the reform implementation reinforces the long-run cointegration
 relationship and strengthens the short-run price comovements of
 cross-listed stocks despite the widening price disparity during the
 period.
Journal: Applied Economics 
Pages: 517-535 
Issue: 6 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083087 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083087 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:517-535




Template-Type: ReDIF-Article 1.0
Author-Name: Harumi Ohmi 
Author-X-Name-First: Harumi 
Author-X-Name-Last: Ohmi 
Author-Name: Tatsuyoshi Okimoto 
Author-X-Name-First: Tatsuyoshi 
Author-X-Name-Last: Okimoto 
Title: Trends in stock-bond correlations 
Abstract:
 Previous studies document the existence of long-run trends in comovements
 in the stock and bond markets. Following these findings, this article
 examines possible trends in stock-bond return correlations. To this end,
 we introduce a trend component into a smooth transition regression (STR)
 model including the multiple transition variables of Aslanidis and
 Christiansen (2012). The results indicate the existence of significant
 decreasing trends in stock-bond correlations for many advanced safer
 countries. In addition, although stock market volatility continues to be
 an important factor in stock-bond correlations, the short rate and yield
 spread become only marginally significant once we introduce the trend
 component. Our out-of-sample analysis also demonstrates that the STR
 model, including the volatility index and time trend as the transition
 variables, dominates other models. Furthermore, we find a significant
 increase in stock-bond correlations for riskier euro countries around the
 beginning of the euro crisis. Our findings of decreasing and increasing
 trends in stock-bond correlations can be considered a consequence of the
 decreasing effects of diversification and more intensive flight-to-quality
 behaviour that have taken place in recent years and after the euro crisis.
Journal: Applied Economics 
Pages: 536-552 
Issue: 6 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083088 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083088 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:536-552




Template-Type: ReDIF-Article 1.0
Author-Name: Mohamad Khattar Awad 
Author-X-Name-First: Mohamad Khattar 
Author-X-Name-Last: Awad 
Author-Name: Bashar Zogheib 
Author-X-Name-First: Bashar 
Author-X-Name-Last: Zogheib 
Author-Name: Hamed M.K. Alazemi 
Author-X-Name-First: Hamed M.K. 
Author-X-Name-Last: Alazemi 
Title: On the optimality of escalating penalties for repeat offences against the academic honour code 
Abstract:
 Although academic dishonesty has a long history in academia, its
 pervasiveness has recently reached an alarming level. Academic dishonesty
 not only undermines the purpose of education and the assessment process
 but also threatens the creditability of academic records. We propose a
 framework for analysing students' behaviour with respect to academic
 policies and honour codes. We draw an analogy between law enforcement and
 academic integrity enforcement and highlight similarities and differences.
 The proposed framework captures major determinants of academic dishonesty
 reported in the literature, namely detection probability, punishment
 severity, class average and record of academic deviance. The framework
 models both students' development of nonacademic skills to improve their
 grades and teaching assistants' development of detection skills, which
 both affect the detection probability. Our analysis demonstrates that the
 optimality of escalating penalties is conditional on the offenders and
 academic policy enforcers learning. Use-case scenarios are presented to
 facilitate the implementation of our results in classrooms.
Journal: Applied Economics 
Pages: 553-562 
Issue: 7 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1078444 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078444 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:553-562




Template-Type: ReDIF-Article 1.0
Author-Name: Maria E. de Boyrie 
Author-X-Name-First: Maria E. 
Author-X-Name-Last: de Boyrie 
Author-Name: Ivelina Pavlova 
Author-X-Name-First: Ivelina 
Author-X-Name-Last: Pavlova 
Title: Dynamic interdependence of sovereign credit default swaps in BRICS and MIST countries 
Abstract:
 This article examines the interactions of emerging markets sovereign
 credit default swaps (CDS). Using a generalized vector autoregressive
 framework and principal component analysis, we find significant spillover
 effects within the two groups of emerging markets under study. Using the
 principal component analysis, we show that global financial market factors
 are important drivers of BRICS and MIST sovereign CDS spreads variability.
 Focusing on the forecast error variance decomposition, most of the
 spillover effects are documented among the emerging markets CDS. Brazil
 and Mexico contribute the largest net directional spillovers to the other
 emerging markets studied.<bold>Highlights</bold>: <list
 list-type="bullet"><list-item>There exist significant CDS spillover
 effects for MIST and BRICS countries.</list-item><list-item>Mexico
 dominates the spillover effects within the MIST group while Brazil
 dominates the spillover effects within the BRICS
 group.</list-item><list-item>As determined by principal component
 analysis, global financial market factors are important drivers of BRICS
 and MIST sovereign CDS spreads variability.</list-item><list-item>There
 exists a relatively small net directional spillover from global financial
 market factors to the countries under study; however, the total spillover
 is time-varying.</list-item><list-item>A large proportion of the forecast
 error variance in the markets studied comes from
 spillovers.</list-item></list>
Journal: Applied Economics 
Pages: 563-575 
Issue: 7 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083089 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083089 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:563-575




Template-Type: ReDIF-Article 1.0
Author-Name: Am鬩e Charles 
Author-X-Name-First: Am鬩e 
Author-X-Name-Last: Charles 
Author-Name: Olivier Darn頍
Author-X-Name-First: Olivier 
Author-X-Name-Last: Darn頍
Author-Name: Jae H. Kim 
Author-X-Name-First: Jae H. 
Author-X-Name-Last: Kim 
Author-Name: Etienne Redor 
Author-X-Name-First: Etienne 
Author-X-Name-Last: Redor 
Title: Stock exchange mergers and market efficiency 
Abstract:
 The aim of this article is to examine the impact of stock exchange mergers
 on the degree of informational efficiency. For this purpose, we apply the
 generalized spectral shape test for the martingale difference hypothesis
 to the stock returns before and after the 31 domestic and cross-border
 mergers completed from 1997 to 2011. The test is conducted with moving
 subsample windows, allowing us to detect the periods of (in)efficiency,
 and thus to conduct a comparative analysis for pre-merger and post-merger
 periods. We find that higher levels of efficiency are less frequent than
 lower levels of efficiency after a stock exchange merger. We also find
 that the impact on the level of efficiency depends on a range of merger
 characteristics such as the level of development, size, geographical
 diversification and industrial diversification of stock exchange.
Journal: Applied Economics 
Pages: 576-589 
Issue: 7 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083090 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083090 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:576-589




Template-Type: ReDIF-Article 1.0
Author-Name: G. C. Montes 
Author-X-Name-First: G. C. 
Author-X-Name-Last: Montes 
Author-Name: L. V. Oliveira 
Author-X-Name-First: L. V. 
Author-X-Name-Last: Oliveira 
Author-Name: A. Curi 
Author-X-Name-First: A. 
Author-X-Name-Last: Curi 
Author-Name: R. T. F. Nicolay 
Author-X-Name-First: R. T. F. 
Author-X-Name-Last: Nicolay 
Title: Effects of transparency, monetary policy signalling and clarity of central bank communication on disagreement about inflation expectations 
Abstract:
 The literature on transparency and central bank communication and the
 literature on disagreement about expectations are evolving; however, both
 have been evolving separately. Despite the advances in the literature,
 several key issues remain open and there are gaps to be filled. Therefore,
 this study analyses the effects of monetary policy signalling and clarity
 of central bank communication on disagreement about inflation
 expectations. It also investigates whether greater transparency coincides
 with lower levels of disagreement in inflation expectations in Brazil. The
 findings suggest that transparency is important to reduce disagreement
 about inflation expectations. Moreover, our estimates indicate that
 central bank communication and clarity affect disagreement about inflation
 expectations in Brazil.
Journal: Applied Economics 
Pages: 590-607 
Issue: 7 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083091 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083091 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:590-607




Template-Type: ReDIF-Article 1.0
Author-Name: B. Qushim 
Author-X-Name-First: B. 
Author-X-Name-Last: Qushim 
Author-Name: J. Gillespie 
Author-X-Name-First: J. 
Author-X-Name-Last: Gillespie 
Author-Name: K. Paudel 
Author-X-Name-First: K. 
Author-X-Name-Last: Paudel 
Author-Name: K. Mcmillin 
Author-X-Name-First: K. 
Author-X-Name-Last: Mcmillin 
Title: Technical and scale efficiencies of meat goat farms in the USA 
Abstract:
 This study determines i) scale and technical efficiencies, ii) marginal
 productive contributions for inputs and outputs and iii) efficiency
 drivers of meat goat farms in the USA. We estimate an input distance
 function (IDF) using a stochastic production frontier (SPF) technique. The
 average technical efficiency (TE) for the USA meat goat whole farm was
 0.74. The operator education level, percentage of annual net farm income
 from the goat operation, regional differences and holding of an off farm
 job are the efficiency drivers of USA meat goat farms. We find increasing
 returns to scale (RTS) for USA meat goat farms. Our results suggest that
 USA meat goat farms can be scale efficient if their optimal size of
 operation is greater than approximately 64 goats or greater than 40
 breeding does. Empirical Monte Carlo (MC) simulation techniques show the
 consistency of finite-sample properties for the input distance function.
Journal: Applied Economics 
Pages: 608-620 
Issue: 7 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083531 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083531 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:608-620




Template-Type: ReDIF-Article 1.0
Author-Name: Mikio Ito 
Author-X-Name-First: Mikio 
Author-X-Name-Last: Ito 
Author-Name: Akihiko Noda 
Author-X-Name-First: Akihiko 
Author-X-Name-Last: Noda 
Author-Name: Tatsuma Wada 
Author-X-Name-First: Tatsuma 
Author-X-Name-Last: Wada 
Title: The evolution of stock market efficiency in the US: a non-Bayesian time-varying model approach 
Abstract:
 A non-Bayesian time-varying model is developed by introducing the concept
 of the degree of market efficiency that varies over time. This model may
 be seen as a reflection of the idea that continuous technological progress
 alters the trading environment over time. With new methodologies and a new
 measure of the degree of market efficiency, we examine whether the US
 stock market evolves over time. In particular, a time-varying
 autoregressive (TV-AR) model is employed. Our main findings are: (i) the
 US stock market has evolved over time and the degree of market efficiency
 has cyclical fluctuations with a considerably long periodicity, from 30 to
 40&nbsp;years; and (ii) the US stock market has been efficient with the
 exception of four times in our sample period: during the long recession of
 1873-1879; the recession of 1902-1904; the New Deal era; and the recession
 of 1957-1958 and soon after it. It is then shown that our results are
 partly consistent with the view of behavioural finance.
Journal: Applied Economics 
Pages: 621-635 
Issue: 7 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1083532 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083532 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:621-635




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Wells 
Author-X-Name-First: Robert 
Author-X-Name-Last: Wells 
Author-Name: Roger Ham 
Author-X-Name-First: Roger 
Author-X-Name-Last: Ham 
Author-Name: P. N. (Raja) Junankar 
Author-X-Name-First: P. N. (Raja) 
Author-X-Name-Last: Junankar 
Title: An examination of personality in occupational outcomes: antagonistic managers, careless workers and extraverted salespeople 
Abstract:
 This article investigates the role of personality in the sorting of
 individuals between a number of occupations, allowing for an extensive
 array of conditioning variables. The focus is an examination of the
 relationship between occupational outcomes and personality using the
 'five-factor model'. We estimate a multinomial logit model using a panel
 data set from the Household Income and Labour Dynamics in Australia
 (HILDA) survey. Human capital variables are found to exhibit strong
 credentialism effects and there is evidence for some small dynasty
 hysteresis. Personality effects are found to be significant, relatively
 large and persistent across all occupations. The personality effects are
 strong enough to rival that of various education credentials. These
 personality effects include but are not limited to managers being less
 agreeable and more antagonistic; labourers being less conscientiousness;
 and salespeople being more extraverted.
Journal: Applied Economics 
Pages: 636-651 
Issue: 7 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085636 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085636 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:636-651




Template-Type: ReDIF-Article 1.0
Author-Name: Bijou Yang 
Author-X-Name-First: Bijou 
Author-X-Name-Last: Yang 
Author-Name: David Lester 
Author-X-Name-First: David 
Author-X-Name-Last: Lester 
Title: Personality traits and economic activity 
Abstract:
 Following Lynn's (1991) studying showing that the scores of undergraduate
 students in 43 countries on variables such as work ethic and achievement
 motivation predicted per capita income and economic growth rates in those
 countries, the present study explored whether the average scores of
 residents of the 50 states in the United States were associated with the
 gross state product. States whose residents scored higher on openness had
 higher gross state products while those whose residents scored higher in
 openness and lower on neuroticism had higher gross state products per
 capita.
Journal: Applied Economics 
Pages: 653-657 
Issue: 8 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085638 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085638 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:653-657




Template-Type: ReDIF-Article 1.0
Author-Name: Zhuwei Li 
Author-X-Name-First: Zhuwei 
Author-X-Name-Last: Li 
Author-Name: Yucheng Wang 
Author-X-Name-First: Yucheng 
Author-X-Name-Last: Wang 
Author-Name: Lijie Yu 
Author-X-Name-First: Lijie 
Author-X-Name-Last: Yu 
Author-Name: Hui An 
Author-X-Name-First: Hui 
Author-X-Name-Last: An 
Title: Relationship between initiative risk management and firm value: evidence from Chinese financial listed companies 
Abstract:
 This study considers 189 Chinese financial listed companies between 2009
 and 2013 as research samples to establish indicators for evaluating the
 initiative risk management behaviour of financial enterprises. This work
 further examines the relationship between initiative risk management and
 firm value. Results show that financial enterprises could effectively
 increase firm value by taking initiative risk management measures, such as
 setting up departments or positions that specialize in risk management,
 using financial derivative instruments or engaging popular international
 accounting firms as audit institutions. Moreover, results reveal that the
 permeability of initiative risk management has an unstable effect on firm
 value, that is, a nonlinear relationship exists between the permeability
 of initiative risk management and firm value.
Journal: Applied Economics 
Pages: 658-668 
Issue: 8 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085639 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085639 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:658-668




Template-Type: ReDIF-Article 1.0
Author-Name: Muthucattu Thomas Paul 
Author-X-Name-First: Muthucattu Thomas 
Author-X-Name-Last: Paul 
Author-Name: James D. Kimata 
Author-X-Name-First: James D. 
Author-X-Name-Last: Kimata 
Title: The linkages, persistence, asymmetry in the volatility, the price discovery and efficiency, and the effect of the US subprime mortgage financial crisis on the spot and the futures market's returns: the case of India 
Abstract:
 This article examines the effects of persistence, asymmetry and the US
 subprime mortgage crisis on the volatility of the returns and also the
 price discovery, efficiency and the linkages and causality between the
 spot and futures volatility by using various classes of the ARCH and GARCH
 models, and through the Granger's causality. We have used two indices: one
 for spot and the other for futures, for the daily data from 12 June 2000
 to 30 September 2013 from Nifty stock indices. We have then tested for
 ARCH effects, and subsequently employed various models of the ARCH and
 GARCH conditional volatility. The GARCH(1,1) model is found to be
 significant, and it implies that the returns are not autocorrelated and
 have 'short memory'. It supports the hypothesis of the efficiency of the
 markets. The negative 'news' has more significant effect on volatility,
 corroborating the 'leverage impact' in finance on market volatility. We
 have also tested the volatility spillover effects. The two methods we
 employed support the spillover effects and the causality is bidirectional.
 We also have used the dummy variable for the US subprime mortgage
 financial crisis and found that they are statistically significant. Indian
 stock market is thus integrated to the world stock markets.
Journal: Applied Economics 
Pages: 669-683 
Issue: 8 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085641 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085641 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:669-683




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou 
Author-X-Name-First: Chris 
Author-X-Name-Last: Sakellariou 
Author-Name: Zheng Fang 
Author-X-Name-First: Zheng 
Author-X-Name-Last: Fang 
Title: Returns to schooling for urban and migrant workers in China: a detailed investigation 
Abstract:
 We use a new data set, the 2009 Rural Urban Migration in China (RUMiC) to
 estimate returns to schooling in China using instrumental variable (IV)
 estimation. After identifying a set of instruments, we conduct
 comprehensive validity and relevance testing of different combinations of
 instruments as well as robustness analysis of our estimates for
 rural-to-urban migrants and urban residents in China. We find that our
 point estimates are in the 6-9% range for urban workers compared to 7-8%
 for migrant workers. Returns for men (at 8-9%) are slightly higher than
 for women (at 6-7%). Thus, private returns to education in urban China in
 2009 were not as high as other transition and developing countries, but
 substantial and have increased over time. Comparing OLS and IV estimates,
 we also find that the attenuation bias due to measurement error is
 generally large and more important in the migrant sample compared to the
 urban sample.
Journal: Applied Economics 
Pages: 684-700 
Issue: 8 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085642 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085642 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:684-700




Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende 
Author-X-Name-First: Marcelo 
Author-X-Name-Last: Resende 
Author-Name: Rodrigo Zeidan 
Author-X-Name-First: Rodrigo 
Author-X-Name-Last: Zeidan 
Title: Tacit collusion with imperfect monitoring in the Canadian manufacturing industry: an empirical study 
Abstract:
 This article undertakes a cross-sectoral analysis of a salient empirical
 implication of the model of tacit collusion advanced by Abreu, Pearce, and
 Stachetti (1986). Specifically, we assess the prevalence of a first-order
 Markovian process for alternating between price wars and collusive periods
 through nonparametric tests. The analysis focuses on 30 different
 industries in Canada. The evidence provides weak support for optimal
 collusion in one industry, which is consistent with the idea that such
 kind of collusive arrangements is unusual, or, if collusion is all too
 common, that price wars as deviations from collusion are rare.
Journal: Applied Economics 
Pages: 701-711 
Issue: 8 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085643 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:701-711




Template-Type: ReDIF-Article 1.0
Author-Name: Constant I. Tra 
Author-X-Name-First: Constant I. 
Author-X-Name-Last: Tra 
Author-Name: Charles A. Towe 
Author-X-Name-First: Charles A. 
Author-X-Name-Last: Towe 
Title: The implications of the US renewable fuel standard programme for farm structure 
Abstract:
 We investigate the impact of the 2005 Renewable Fuel Standard (RFS) on
 farm structure, particularly farm size. We rely on the salience of a new
 ethanol plant in a farmers' local neighbourhood to identify the impact of
 the RFS mandate on these spatially advantaged farms. To control for the
 nonrandom selection of ethanol production facilities, we utilize a
 propensity score matching estimator, and to remove impact of farm-level or
 market shifting unobservables resulting from shifts in commodity prices we
 employ a difference-in-difference (DD) matching approach. We estimate the
 treatment effect of an ethanol production facility on farm size prior to
 the RFS mandate and after the RFS programme. The effect of the RFS policy
 on farm size is obtained as the difference between these two DD matching
 estimators. Overall, our results suggest that the RFS programme raised the
 probability of farm size increase by roughly 12-18%, on average, for farms
 located within a 30-mile radius of new ethanol plants. In addition, the
 programme contributed to a net increase in farm size of 25-32%, on
 average, for those spatially advantaged farms.
Journal: Applied Economics 
Pages: 712-722 
Issue: 8 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085644 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085644 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:712-722




Template-Type: ReDIF-Article 1.0
Author-Name: Ya Yu 
Author-X-Name-First: Ya 
Author-X-Name-Last: Yu 
Author-Name: C. Nicholas Mckinney 
Author-X-Name-First: C. Nicholas 
Author-X-Name-Last: Mckinney 
Author-Name: Steven B. Caudill 
Author-X-Name-First: Steven B. 
Author-X-Name-Last: Caudill 
Author-Name: Franklin G. Mixon 
Author-X-Name-First: Franklin G. 
Author-X-Name-Last: Mixon 
Title: Athletic contests and individual robberies: an analysis based on hourly crime data 
Abstract:
 Using <italic>hourly</italic> data on individual robberies, this article
 employs a novel approach to investigate the relationship between athletic
 contests and individual robberies in Memphis, Tennessee, a well-known
 entertainment destination, with its iconic Beale Street locale, in the US.
 Empirical results indicate that home basketball games hosted by the NBA's
 Memphis Grizzlies and those hosted by the University of Memphis Tigers are
 associated with increases in individual robberies, while away games are
 not associated with such an increase. This finding is consistent with the
 <italic>hot spot theory</italic> of crime, as large numbers of individuals
 travel to the games, thus providing additional opportunities for crime.
Journal: Applied Economics 
Pages: 723-730 
Issue: 8 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085645 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:723-730




Template-Type: ReDIF-Article 1.0
Author-Name: Yizheng Jin 
Author-X-Name-First: Yizheng 
Author-X-Name-Last: Jin 
Author-Name: Bin Li 
Author-X-Name-First: Bin 
Author-X-Name-Last: Li 
Author-Name: Eduardo Roca 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Roca 
Author-Name: Victor Wong 
Author-X-Name-First: Victor 
Author-X-Name-Last: Wong 
Title: Water as an investment: liquid yet illiquid! 
Abstract:
 The water industry is in great need of further large investments to
 address existing severe water shortages worldwide which requires the
 participation of private sector investors. This industry is heavily
 infrastructure based and is therefore saddled with fixed assets-in-place
 or illiquid assets. This exposes the industry to what is termed as
 'illiquidity risk', and hence, investors in this industry should be
 compensated for bearing this risk with an appropriate return premium (i.e.
 extra return). In this study, we provide evidence as to whether
 illiquidity risk indeed significantly affects returns in this industry. We
 examine the case of all 76 firms that compose the five major global water
 indices. After controlling for other factors that impact on returns, our
 results suggest that asset illiquidity is positively associated with stock
 returns. Specifically, water firms with a larger proportion of illiquid
 assets-in-place are observed to have greater stock returns than those with
 a smaller proportion of illiquid assets. Our results have important
 implications for the financing of water-related projects particularly
 those which involve the participation of investors from the private
 sector.
Journal: Applied Economics 
Pages: 731-745 
Issue: 9 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085646 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085646 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:731-745




Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Schwirplies 
Author-X-Name-First: Claudia 
Author-X-Name-Last: Schwirplies 
Author-Name: Andreas Ziegler 
Author-X-Name-First: Andreas 
Author-X-Name-Last: Ziegler 
Title: Offset carbon emissions or pay a price premium for avoiding them? A cross-country analysis of motives for climate protection activities 
Abstract:
 This article contributes to the economic literature on pure and impure
 public goods by considering two alternatives for contributing to the
 public good climate protection: offsetting carbon emissions from
 conventional consumption or paying higher prices for climate-friendly
 products. We empirically examine a wide range of motives and their impact
 on individuals' choice in favour of these two alternatives relying on data
 from representative international surveys. Our results indicate that
 environmental awareness, warm glow motives and the desire to set a good
 example have the most robust effects on both climate protection activities
 in Germany and the United States. However, some motives differ
 considerably between both alternatives and the two countries. A green
 identity enhances the willingness to pay a price premium for
 climate-friendly goods or services in Germany, while social norms seem to
 be of much higher relevance in the United States. Our results further
 suggest that the choice of climate protection activities, especially of
 carbon offsetting, entails a high degree of uncertainty.
Journal: Applied Economics 
Pages: 746-758 
Issue: 9 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1085647 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085647 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:746-758




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Schaffer 
Author-X-Name-First: Marc 
Author-X-Name-Last: Schaffer 
Author-Name: Mark Wheeler 
Author-X-Name-First: Mark 
Author-X-Name-Last: Wheeler 
Title: The impact of housing market disturbances on the US financial system: a pre-crisis analysis 
Abstract:
 A common critique of the Federal Reserve over the past crisis is that it
 should have better anticipated the impact of the run-up in home mortgage
 debt and the subsequent housing market crash on the financial system. As a
 result, the Federal Reserve should have moved much more quickly to shore
 up financial markets. Our article tests the hypothesis that the impact of
 the housing market crash on the financial system could have been
 anticipated. Using a VAR model along with impulse response functions and
 variance decompositions, we examine the link between housing market
 mortgage debt shocks and the financial intermediaries' credit market
 behaviour. We find important connections between key macroeconomic
 variables and the credit behaviour of these financial institutions.
 However, using the pre-crisis data, we find that housing market debt
 shocks fail to have an impact on the credit markets accessed by these
 firms. These results support the notion that the impact of this crisis on
 the financial system could not have been anticipated given the information
 available at the time.
Journal: Applied Economics 
Pages: 759-771 
Issue: 9 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1088138 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088138 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:759-771




Template-Type: ReDIF-Article 1.0
Author-Name: Hubert Dichtl 
Author-X-Name-First: Hubert 
Author-X-Name-Last: Dichtl 
Author-Name: Wolfgang Drobetz 
Author-X-Name-First: Wolfgang 
Author-X-Name-Last: Drobetz 
Author-Name: Martin Wambach 
Author-X-Name-First: Martin 
Author-X-Name-Last: Wambach 
Title: Testing rebalancing strategies for stock-bond portfolios across different asset allocations 
Abstract:
 We compare the risk-adjusted performance of stock-bond portfolios between
 rebalancing and buy-and-hold across different asset allocations by
 reporting statistical significance levels. Our investigation is based on a
 30-year dataset and incorporates the financial markets of the United
 States, the United Kingdom and Germany. To draw useful recommendations to
 investment management, we implement a history-based simulation approach
 which enables us to mimic realistic market conditions. Even if the
 portfolio weight of stocks is very low, our empirical results show that a
 frequent rebalancing significantly enhances risk-adjusted portfolio
 performance for all analysed countries and all risk-adjusted performance
 measures.
Journal: Applied Economics 
Pages: 772-788 
Issue: 9 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1088139 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088139 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:772-788




Template-Type: ReDIF-Article 1.0
Author-Name: Jianhua Mi 
Author-X-Name-First: Jianhua 
Author-X-Name-Last: Mi 
Author-Name: Hong Sheng 
Author-X-Name-First: Hong 
Author-X-Name-Last: Sheng 
Author-Name: Cassandra Elrod 
Author-X-Name-First: Cassandra 
Author-X-Name-Last: Elrod 
Title: Financing, reputation and information disclosure quality in the Chinese market 
Abstract:
 In this article, we propose a theoretical model based on the reputation
 theory and hypothesize a positive relation between the information
 disclosure quality and the company's refinancing decision. We collected
 data from the listed companies, which refinances in Shenzhen main board
 and SME board during 2006-2012, as a panel sample, and tested the
 hypothesis empirically. The results indicate that there exists a
 significant positive correction short-term relation between refinancing
 decision and the information disclosure quality, but in the long term the
 relationship between the information disclosure quality and refinancing
 decision is not significant.
Journal: Applied Economics 
Pages: 789-798 
Issue: 9 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1088140 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088140 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:789-798




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Pino 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: Pino 
Author-Name: J. D. Tena 
Author-X-Name-First: J. D. 
Author-X-Name-Last: Tena 
Author-Name: Antoni Espasa 
Author-X-Name-First: Antoni 
Author-X-Name-Last: Espasa 
Title: Geographical disaggregation of sectoral inflation. Econometric modelling of the Euro area and Spanish economies 
Abstract:
 This article studies the performance of different modelling strategies for
 969 and 600 monthly price indexes disaggregated by sectors and
 geographical areas in Spain, regions and in the Euro Area 12 (EA12)
 countries. We also provide, by means of spatial bi-dimensional vector
 equilibrium correction models for all pairs of prices between neighbours,
 a description of spatial cointegration restrictions that could be useful
 for understanding price setting within an economy. We study the relevance
 of the regional disaggregation by using the proposed models to forecast
 the corresponding headline inflation and testing whether it is more
 accurate than alternative forecasts based on aggregated models. The
 results for Spain show that this is the case. Country disaggregation
 forecasts are also reliable for the EA12, but only because derived
 headline inflation forecasting is not significantly worse than alternative
 forecasts. The models in this article can be used for competitive analysis
 and other macro and regional analysis.
Journal: Applied Economics 
Pages: 799-815 
Issue: 9 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1088141 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:799-815




Template-Type: ReDIF-Article 1.0
Author-Name: Carla Fernandes 
Author-X-Name-First: Carla 
Author-X-Name-Last: Fernandes 
Author-Name: Paulo M. Gama 
Author-X-Name-First: Paulo M. 
Author-X-Name-Last: Gama 
Author-Name: Elisabete Vieira 
Author-X-Name-First: Elisabete 
Author-X-Name-Last: Vieira 
Title: Does local and Euro area sentiment matter for sovereign debt markets? Evidence from a bailout country 
Abstract:
 Does sentiment impact the sovereign debt markets? This article
 investigates whether lagged domestic and Euro area irrational sentiment
 (optimism or pessimism unwarranted by fundamentals) predicts future
 sovereign bond spreads, in Portugal, between January 2000 and December
 2013. We find that domestic and Euro area sentiment negatively forecasts
 total return spreads and that this effect is stronger during the bailout
 period. Also, we find that the business sentiment is even most noticed.
 Therefore, Portuguese sovereign debt market is prone to the influence of
 investors' sentiment.
Journal: Applied Economics 
Pages: 816-834 
Issue: 9 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1088142 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:816-834




Template-Type: ReDIF-Article 1.0
Author-Name: Mariya Gubareva 
Author-X-Name-First: Mariya 
Author-X-Name-Last: Gubareva 
Author-Name: Maria Rosa Borges 
Author-X-Name-First: Maria Rosa 
Author-X-Name-Last: Borges 
Title: Typology for flight-to-quality episodes and downside risk measurement 
Abstract:
 We propose a total return-based framework to measure downside risk
 associated with phenomenon of capital outflows from riskier to safer
 financial markets. The proposed method consists of three elements: (i) the
 general definition of the flight-to-quality (FtQ) phenomenon, (ii) the
 typological classification of the flight-to-quality occurrences for
 associating them with the phases of the business cycle and (iii) the
 automated technique to diagnose the time frames and to measure the impact
 of flight-to-quality on financial instruments. The proposed framework is
 applied to analyse the global-scale capital inflows/outflows from emerging
 markets public debt to the US Treasuries and vice versa. The results show
 that different phases of business cycles and GDP growth rates, including
 turning points, could be associated with flights-to-quality of different
 types and causality origins. Addressing downside risk crystallizations in
 flight-to-quality occurrences, new perspectives of integrated interest
 rate risk and credit risk management are discussed. For strengthening
 financial stability, we suggest the use of flight-to-quality windows as
 scenarios for stress testing, both for banks and financial institutions.
Journal: Applied Economics 
Pages: 835-853 
Issue: 10 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1088143 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088143 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:835-853




Template-Type: ReDIF-Article 1.0
Author-Name: Young Bin Ahn 
Author-X-Name-First: Young Bin 
Author-X-Name-Last: Ahn 
Author-Name: Yoichi Tsuchiya 
Author-X-Name-First: Yoichi 
Author-X-Name-Last: Tsuchiya 
Title: Directional analysis of consumers&#x2019; forecasts of inflation in a small open economy: evidence from South Korea 
Abstract:
 We evaluate the directional accuracy of consumers&#x2019; forecasts of
 inflation in predicting the movement of the actual CPI in a small open
 economy. In order to do so, we use a method developed by Pesaran and
 Timmermann (2009), based on South Korean data. By illustrating an
 application of the new market-timing test, we show that consumers&#x2019;
 expectations of inflation are not a useful predictor of the CPI in South
 Korea. Our findings suggest that the directional accuracy of
 consumers&#x2019; 1-year-ahead forecasts of inflation is not affected by
 the inflation targeting of the Bank of Korea. Our findings also suggest
 that consumers&#x2019; 1-year-ahead forecasts of inflation are scattered
 away from the Bank of Korea&#x2019;s inflation target.
Journal: Applied Economics 
Pages: 854-864 
Issue: 10 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1088144 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088144 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:854-864




Template-Type: ReDIF-Article 1.0
Author-Name: Ant&#xf3;nio Afonso 
Author-X-Name-First: Ant&#xf3;nio 
Author-X-Name-Last: Afonso 
Author-Name: Ana Ven&#xe2;ncio 
Author-X-Name-First: Ana 
Author-X-Name-Last: Ven&#xe2;ncio 
Title: The relevance of commuting zones for regional spending efficiency 
Abstract:
 We use data envelopment analysis (DEA) efficiency scores to show that
 clustering municipalities into encompassing regional clusters improves
 spending efficiency of single stand-alone municipalities. We propose a new
 geographic aggregation based on municipalities-to-municipalities commuting
 flows, defined using hierarchical cluster analysis. Our example for
 Portugal shows that from an output-oriented perspective between 83% and
 98% of municipalities would increase their efficiency scores, while from
 an input-oriented perspective between 86% and 98% of municipalities would
 also be better off in terms of efficiency. Then using a linear regression
 model, we find that population increases positively affects the efficient
 scores (via scale economies). Also, increases in the share of
 high-educated and poorer residents leads to higher efficiency scores.
Journal: Applied Economics 
Pages: 865-877 
Issue: 10 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1088145 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088145 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:865-877




Template-Type: ReDIF-Article 1.0
Author-Name: Pan Tang 
Author-X-Name-First: Pan 
Author-X-Name-Last: Tang 
Author-Name: Belal E. Baaquie 
Author-X-Name-First: Belal E. 
Author-X-Name-Last: Baaquie 
Author-Name: Xin Du 
Author-X-Name-First: Xin 
Author-X-Name-Last: Du 
Author-Name: Ying Zhang 
Author-X-Name-First: Ying 
Author-X-Name-Last: Zhang 
Title: Linearized Hamiltonian of the LIBOR market model: analytical and empirical results 
Abstract:
 The linearized Hamiltonian model is proposed to extend the London
 Interbank Offered Rate (LIBOR) Market Model (LMM). Firstly, we studied the
 Hamiltonian of LMM in the framework of quantum finance, and the nontrivial
 upper triangle form of LIBOR drift is derived. The linearized Hamiltonian
 is derived to improve the explanatory capability of the model for market
 data. Our approach uses one more parameter to explain the initial
 condition and the model can be used to calibrate LIBORs with extremely
 high accuracy. Furthermore, the market time index is required for applying
 the model to multi-LIBOR, and the results imply that the LIBOR future time
 lattice becomes shorter as one goes from near future to distant future.
Journal: Applied Economics 
Pages: 878-891 
Issue: 10 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1090546 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090546 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:878-891




Template-Type: ReDIF-Article 1.0
Author-Name: Jaewoon Koo 
Author-X-Name-First: Jaewoon 
Author-X-Name-Last: Koo 
Author-Name: Yunxing Song 
Author-X-Name-First: Yunxing 
Author-X-Name-Last: Song 
Title: The relationship between income inequality and aggregate saving: an empirical analysis using cross-country panel data 
Abstract:
 If the rich save more than the poor, an increase in income inequality
 raises aggregate saving. We investigate whether income inequality is
 positively related to aggregate saving ratio by estimating a fixed-effect
 model based on a panel data of 48 countries for the period 1991--2010. We
 find evidence that aggregate saving ratio increases with income inequality
 using various inequality measures. In particular, the effect of income
 distribution on saving is greater and statistically more significant with
 in financially developed, rich and OECD countries. It suggests that the
 rich save much more than the poor under advanced financial system and in a
 rich country. We also find that the relationship between income inequality
 and saving ratio is closer in the 2000s than the 1990s. This finding may
 result from financial development and the high income level in the 2000s.
Journal: Applied Economics 
Pages: 892-901 
Issue: 10 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1090548 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090548 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:892-901




Template-Type: ReDIF-Article 1.0
Author-Name: James J. Kung 
Author-X-Name-First: James J. 
Author-X-Name-Last: Kung 
Title: A nonparametric kernel regression approach for pricing options on stock market index 
Abstract:
 Previous options studies typically assume that the dynamics of the
 underlying asset price follow a geometric Brownian motion (GBM) when
 pricing options on stocks, stock indices, currencies or futures. However,
 there is mounting empirical evidence that the volatility of asset price or
 return is far from constant. This article, in contrast to studies that use
 parametric approach for option pricing, employs nonparametric kernel
 regression to deal with changing volatility and, accordingly, prices
 options on stock index. Specifically, we first estimate nonparametrically
 the volatility of asset return in the GBM based on the Nadaraya--Watson
 (N--W) kernel estimator. Then, based on the N--W estimates for the
 volatility, we use Monte Carlo simulation to compute option prices under
 different settings. Finally, we compare the index option prices under our
 nonparametric model with those under the Black--Scholes model and the
 Stein--Stein model.
Journal: Applied Economics 
Pages: 902-913 
Issue: 10 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1090549 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090549 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:902-913




Template-Type: ReDIF-Article 1.0
Author-Name: Thai-Ha Le 
Author-X-Name-First: Thai-Ha 
Author-X-Name-Last: Le 
Title: Dynamics between energy, output, openness and financial development in sub-Saharan African countries 
Abstract:
 This study aims to establish the connection between energy use, economic
 output, financial development and trade, based on the panel data of 15
 sub-Saharan African (SSA) countries during the period from 1983 to 2010.
 One full main panel and two subpanels were created by incorporating
 low-income and middle-income countries. The panel cointegration test
 results indicate a long-run relationship between the variables. The mean
 group (MG) estimators show that energy consumption, financial development,
 capital and international trade have significant impacts on economic
 output. In the case of middle-income countries, the Granger causality
 analysis reveals that rising economic output leads to higher energy
 consumption, but this is not true vice versa. This means that energy
 conservation measures are unlikely to have adverse impacts upon economic
 output. On the other hand, there is a complementary relationship between
 financial development and energy consumption. In this case, energy
 conservation measures should be critically analysed and implemented, so as
 not to have an unfavourable impact on financial development. In regard to
 low-income economies, there is no relationship between energy use and any
 of the other variables mentioned. Thus, a reduction in energy consumption
 has little or no significant impact on output, financial development,
 capital and trade.
Journal: Applied Economics 
Pages: 914-933 
Issue: 10 
Volume: 48 
Year: 2016 
Month: 2 
X-DOI: 10.1080/00036846.2015.1090550 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090550 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:914-933




Template-Type: ReDIF-Article 1.0
Author-Name: Svetlana Fedoseeva 
Author-X-Name-First: Svetlana 
Author-X-Name-Last: Fedoseeva 
Title: Same currency, different strategies? The (asymmetric) role of the exchange rate in shaping European agri-food exports 
Abstract:
 <title>Abstract</title>This article uses a nonlinear autoregressive
 distributed lag (NADRL) model introduced by Shin, Yu, and Greenwood-Nimmo
 (2014) to assess the role that the exchange rate plays in shaping European
 agri-food exports after the introduction of the Euro. Although the 10
 countries of this study share the same currency (and thus a single nominal
 exchange rate with the US), cross-country discrepancies of exports&#x2019;
 reactions to exchange rate changes are evident. Moreover, I find that
 exchange rate changes influence exports asymmetrically in the long run.
 Euro appreciations are harmful to a lesser extent than Euro depreciations
 are beneficial for European agri-food exports. The magnitude of this
 effect is country-specific and varies considerably between individual
 exporting countries. Exported quantities are less affected by exchange
 rate fluctuations than export values, which is in line with local currency
 price stabilization strategies of the exporters. This finding is
 interpreted as a sign of an incomplete exchange rate pass-through due to
 strategic (asymmetric) markup adjustments by firms with heterogeneous
 productivity. Besides that, the outcomes suggest that nonprice competition
 might be in play in some cases.
Journal: Applied Economics 
Pages: 1005-1017 
Issue: 11 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1090557 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090557 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:1005-1017




Template-Type: ReDIF-Article 1.0
Author-Name: Ficawoyi Donou-Adonsou 
Author-X-Name-First: Ficawoyi 
Author-X-Name-Last: Donou-Adonsou 
Author-Name: Sokchea Lim 
Author-X-Name-First: Sokchea 
Author-X-Name-Last: Lim 
Title: An empirical analysis of remittance flows into West African Economic and Monetary Union: a panel time-series approach 
Abstract:
 <title>ABSTRACT</title>The article empirically analyses the motivations
 and long-run economic outcomes of remittance inflows into the West African
 Economic and Monetary Union. Using Westerlund&#x2019;s (2007) ECM for
 panel time series and data spanning 1975--2011, the results show that
 there is no evidence of a long-run impact of remittances on income per
 capita in the region. The inflows seem to be motivated by investment, but
 the money may be used to promote consumption instead. This phenomenon
 could be characterized by information asymmetry between migrants and the
 recipients.
Journal: Applied Economics 
Pages: 1018-1029 
Issue: 11 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093080 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093080 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:1018-1029




Template-Type: ReDIF-Article 1.0
Author-Name: Meltem Ucal 
Author-X-Name-First: Meltem 
Author-X-Name-Last: Ucal 
Author-Name: Alfred Albert Haug 
Author-X-Name-First: Alfred Albert 
Author-X-Name-Last: Haug 
Author-Name: Mehmet H&#xfc;seyin Bilgin 
Author-X-Name-First: Mehmet H&#xfc;seyin 
Author-X-Name-Last: Bilgin 
Title: Income inequality and FDI: evidence with Turkish data 
Abstract:
 <title>ABSTRACT</title>This article explores how foreign direct investment
 (FDI) and other determinants impact income inequality in Turkey in the
 short- and long-run. We apply the nonlinear auto-regressive distributed
 lag (ARDL) modelling approach, which is suitable for small samples. The
 data for the study cover the years from 1970 to 2008. The empirical
 results indicate the existence of a co-integration relationship among the
 variables with asymmetric adjustment of the income distribution in the
 short- and long-run. The negative impact of FDI on the Gini coefficient,
 decreasing income inequality, is statistically significant in the short-
 and long-run, though with a quantitatively small impact in both cases. In
 the short run, GDP growth increases inequality initially, an effect that
 is reversed in the next period, increases in domestic gross capital
 formation decreases inequality, and increases in the literacy rate have
 very minor adverse effects on income equality. However, in the long run
 these variables have no statistically significant effects on the Gini
 coefficient. A reduction in the population growth rate reduces inequality
 in the short run but has no effect in the long run, whereas an increase in
 the rate reduces inequality in the long run but has no effect in the short
 run.
Journal: Applied Economics 
Pages: 1030-1045 
Issue: 11 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093081 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093081 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:1030-1045




Template-Type: ReDIF-Article 1.0
Author-Name: Navina Lucke 
Author-X-Name-First: Navina 
Author-X-Name-Last: Lucke 
Author-Name: Stefan Eichler 
Author-X-Name-First: Stefan 
Author-X-Name-Last: Eichler 
Title: Foreign direct investment: the role of institutional and cultural determinants 
Abstract:
 <title>ABSTRACT</title>Using panel data for 29 source and 65 host
 countries in the period 1995--2009, we examine the determinants of
 bilateral FDI stocks, focusing on institutional and cultural factors. The
 results reveal that institutional and cultural distance is important and
 that FDI has a predominantly regional aspect. FDI to developing countries
 is positively affected by better institutions in the host country, while
 foreign investors prefer to invest in developed countries that are more
 corrupt and politically unstable compared to home. The results indicate
 that foreign investors prefer to invest in countries with less diverse
 societies than their own.
Journal: Applied Economics 
Pages: 935-956 
Issue: 11 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1090551 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090551 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:935-956




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Javed Iqbal 
Author-X-Name-First: Javed 
Author-X-Name-Last: Iqbal 
Author-Name: Misbah Nosheen 
Author-X-Name-First: Misbah 
Author-X-Name-Last: Nosheen 
Title: Commodity trade between Pakistan and the US: is there evidence of the J-curve? 
Abstract:
 <title>ABSTRACT</title>A few studies that have attempted to estimate the
 short-run (J-curve) and long-run impact of exchange rate depreciation on
 Pakistan&#x2019;s trade balance are either based on aggregate trade data
 between Pakistan and the rest of the world or between Pakistan and her
 bilateral trading partners. The findings are mixed at best. Considering
 the trade balance between Pakistan and the US, as one of its major
 partners, no significant effects have been discovered. Suspecting that the
 trade flows between the two countries could suffer from another
 aggregation bias, we disaggregate their trade flows by commodity and
 consider the trade balance of 45 industries that trade between the two
 countries. We find significant short-run effects of currency depreciation
 on the trade balance of 17 industries. The short-run effects last into the
 long run in 15 cases. The largest industry that account for more than 10%
 of the trade seems to benefit from real depreciation in the long run.
Journal: Applied Economics 
Pages: 957-965 
Issue: 11 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1090552 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:957-965




Template-Type: ReDIF-Article 1.0
Author-Name: C&#xe9;cile Couharde 
Author-X-Name-First: C&#xe9;cile 
Author-X-Name-Last: Couharde 
Author-Name: Serge Rey 
Author-X-Name-First: Serge 
Author-X-Name-Last: Rey 
Author-Name: Audrey Sallenave 
Author-X-Name-First: Audrey 
Author-X-Name-Last: Sallenave 
Title: External debt and real exchange rates&#x2019; adjustment in the euro area: new evidence from a nonlinear NATREX model 
Abstract:
 <title>ABSTRACT</title>In this article, we revisit medium- to long-run
 real exchange rate determination within the euro area, focusing on the
 role of external debt. Accordingly, we rely on the NATural Real EXchange
 rate (NATREX) approach which provides an explicit framework of the
 external debt--real exchange rates nexus. In particular, given the
 indebtedness levels reached by the euro area economies, we investigate
 potential nonlinearity in real exchange rates dynamics, according to the
 level of the external debt. Our results evidence that during the monetary
 union, gross and net external debt positions of the euro area countries
 have exerted pressures on real exchange rate dynamics within the area.
 Moreover, we find that, beyond a threshold reached by the external debt,
 euro area countries are found to be in a vulnerable position, leading to
 an unavoidable adjustment process. Nevertheless, the adjustment process,
 while effective, is found to be low and occurs slowly.
Journal: Applied Economics 
Pages: 966-986 
Issue: 11 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1090554 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090554 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:966-986




Template-Type: ReDIF-Article 1.0
Author-Name: Yonghong An 
Author-X-Name-First: Yonghong 
Author-X-Name-Last: An 
Author-Name: Kai Zhao 
Author-X-Name-First: Kai 
Author-X-Name-Last: Zhao 
Author-Name: Rong Zhou 
Author-X-Name-First: Rong 
Author-X-Name-Last: Zhou 
Title: Health spending and public pension: evidence from panel data 
Abstract:
 <title>ABSTRACT</title>This article empirically investigates the
 determinants of aggregate health expenditure in a panel of OECD countries
 from 1980 to 2005. We differ from most existing studies by testing some
 new determinants motivated by recent theoretical advances in the
 literature. We find that a one percentage increase in public pension
 payments per elderly person leads to approximately a one third percentage
 increase in aggregate health spending, and this effect is significant and
 robust across a variety of model specifications. A back of the envelope
 calculation based on this estimate suggests that the expansion of the
 public pension programme on average accounts for approximately over one
 fifth of the rise in aggregate health expenditure as a share of GDP in the
 set of OECD countries during 1980--2005. In addition, we find that the
 estimated effect of GDP per capita in our model ranges from 0.66 to 0.80,
 which is consistent with the results from some recent studies, and thus
 further reinforces the finding in the literature that health care is not a
 luxury good.
Journal: Applied Economics 
Pages: 987-1004 
Issue: 11 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1090556 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090556 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:987-1004




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Kesternich 
Author-X-Name-First: Martin 
Author-X-Name-Last: Kesternich 
Title: Minimum participation rules in international environmental agreements: empirical evidence from a survey among delegates in international climate negotiations 
Abstract:
 Recent contributions to the theoretical and experimental literature
 suggest that minimum participation rules (MPRs) are able to reduce
 free-riding incentives and may facilitate cooperation (or at least
 coordination) at the extensive margin of international environmental
 agreements. Based on a data set from a worldwide survey among delegates in
 international climate negotiations, this article assesses preferences for
 different MPRs for a future climate treaty among key players. The
 empirical findings provide evidence that small countries with low
 bargaining power rather opt for large minimum membership requirements
 while industrialized countries push forward the idea of a small carbon
 club of the largest emitters only. In contrast, delegates from countries
 in transition try to keep emission thresholds rather low which would allow
 a future agreement to come into force without their signature.
Journal: Applied Economics 
Pages: 1047-1065 
Issue: 12 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093082 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093082 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1047-1065




Template-Type: ReDIF-Article 1.0
Author-Name: Jo&#xe3;o Paulo Vieito 
Author-X-Name-First: Jo&#xe3;o Paulo 
Author-X-Name-Last: Vieito 
Author-Name: Wing-Keung Wong 
Author-X-Name-First: Wing-Keung 
Author-X-Name-Last: Wong 
Author-Name: Zhen-Zhen Zhu 
Author-X-Name-First: Zhen-Zhen 
Author-X-Name-Last: Zhu 
Title: Could the global financial crisis improve the performance of the G7 stocks markets? 
Abstract:
 Financial crises are normally associated with negative effects on
 financial markets. In this article, we investigate whether the most recent
 global financial crisis (GFC) had any positive impact on the G7 (Canada,
 France, Germany, Italy, Japan, the United Kingdom and the United States)
 indices. To conduct the analysis we employ the mean--variance (MV)
 analysis, CAPM statistics, Hurst exponent, runs test, multiple variation
 ratio test and stochastic dominance (SD) tests. Our MV and CAPM results
 conclude that most of the G7 stock indices are significantly less
 volatile. The results from Hurst exponent, run tests and multiple
 variation ratio confirm that efficiency improved in the post-GFC period.
 Finally, our SD results conclude that there is no arbitrage opportunity
 and the markets are efficient due to the GFC, and, in general, investors
 prefer investing in the indices after the GFC. Overall, we conclude that
 the GFC led to markets that are more efficient and mature, confirming that
 crises can also have positive impacts on stock markets. These findings
 provide important information for investors and market regulators.
Journal: Applied Economics 
Pages: 1066-1080 
Issue: 12 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093083 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1066-1080




Template-Type: ReDIF-Article 1.0
Author-Name: Manuel Ventura-Marco 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Ventura-Marco 
Author-Name: Carlos Vidal-Meli&#xe1; 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Vidal-Meli&#xe1; 
Title: Integrating retirement and permanent disability in NDC pension schemes 
Abstract:
 In this article, we develop a theoretical basis for integrating retirement
 and permanent disability using a generic nonfinancial defined contribution
 framework. The methodology we use relies on a multistate overlapping
 generations model that includes the so-called survivor dividend.
 Currently, this feature can only be found in the Swedish defined
 contribution (DC) scheme. The results achieved in the numerical example we
 present endorse the fact that the model works well. Special attention is
 given to the assumptions made about mortality rates for disabled people
 and disability incidence rates, which largely determine the contribution
 rate assigned to disability. The model could be of interest to
 policymakers because, after some adaptations, it could be implemented
 without too much difficulty and would uncover the real cost of disability
 and minimize the risk of disability insurance being used as a vote-buying
 mechanism.
Journal: Applied Economics 
Pages: 1081-1102 
Issue: 12 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093084 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093084 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1081-1102




Template-Type: ReDIF-Article 1.0
Author-Name: David Iselin 
Author-X-Name-First: David 
Author-X-Name-Last: Iselin 
Author-Name: Boriss Siliverstovs 
Author-X-Name-First: Boriss 
Author-X-Name-Last: Siliverstovs 
Title: Using newspapers for tracking the business cycle: a comparative study for Germany and Switzerland 
Abstract:
 The use of news-based data for tracking the real economy has gained
 popularity recently as newspapers archives have become accessible and the
 need for timely information has soared. In this article, on the basis of
 keyword searches in newspaper articles we construct several versions of
 the so-called Recession-word Index (RWI) for Germany and Switzerland and
 exploit its use for forecasting. Our main findings are the following.
 First, we show that augmenting benchmark autoregressive models with the
 RWI leads to improvement in accuracy of one-step-ahead forecasts of GDP
 growth compared with those obtained by benchmark models. Second, the
 accuracy of out-of-sample forecasts obtained with models augmented with
 the RWI is comparable to that of models augmented with established
 economic indicators, such as the Ifo Business Climate Index and the ZEW
 Indicator of Economic Sentiment for Germany, and the KOF Economic
 Barometer and the Purchasing Managers Index in manufacturing for
 Switzerland. Our results are robust to changes in estimation/forecast
 samples, the use of rolling versus expanding estimation windows and the
 inclusion of a web-based recession indicator from Google Trends. As our
 indices are timely and simple to construct, they could be replicated in
 countries or regions where no reliable economic indicators exist or their
 provision is very costly.
Journal: Applied Economics 
Pages: 1103-1118 
Issue: 12 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093085 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093085 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1103-1118




Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek 
Author-X-Name-First: Szabolcs 
Author-X-Name-Last: Blazsek 
Author-Name: Vicente Mendoza 
Author-X-Name-First: Vicente 
Author-X-Name-Last: Mendoza 
Title: QARMA-Beta-<italic>t</italic>-EGARCH versus ARMA-GARCH: an application to S&P 500 
Abstract:
 Statistical performance and out-of-sample forecast precision of ARMA-GARCH
 and QARMA-Beta-<italic>t</italic>-EGARCH are compared. We study daily
 returns on the Standard and Poor&#x2019;s 500 (S&P 500) index and a random
 sample of 50 stocks from the S&P 500 for period May 2006 to July 2010.
 Competing models are estimated for periods before and during the US
 financial crisis of 2008. Out-of-sample point and density forecasts are
 performed for periods during and after the US financial crisis. The
 results provide evidence of the superior in-sample statistical and
 out-of-sample predictive performance of
 QARMA-Beta-<italic>t</italic>-EGARCH.
Journal: Applied Economics 
Pages: 1119-1129 
Issue: 12 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093086 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093086 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1119-1129




Template-Type: ReDIF-Article 1.0
Author-Name: Wang Chen 
Author-X-Name-First: Wang 
Author-X-Name-Last: Chen 
Author-Name: Shigeyuki Hamori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Hamori 
Author-Name: Takuji Kinkyo 
Author-X-Name-First: Takuji 
Author-X-Name-Last: Kinkyo 
Title: Financial development and financial openness nexus: the precondition of banking competition 
Abstract:
 We examine the dynamic relationship between financial development and
 financial openness using the pooled mean group estimator developed by
 Pesaran et al. (1999). Our results show that financial openness has a
 positive effect on financial development in the long run, but may have a
 negative effect in the short run. Using estimates of country-specific
 short-run coefficients, we also find that the adverse short-run effects of
 financial openness are associated with a lower degree of banking
 competition. The system GMM estimator also supports these findings,
 suggesting that the financial development and financial openness nexus is
 contingent on the degree of banking competition. A key policy implication
 is that a higher degree of banking competition is a precondition for
 financial openness to promote financial development.
Journal: Applied Economics 
Pages: 1130-1139 
Issue: 12 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093087 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093087 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1130-1139




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Geertsema 
Author-X-Name-First: Paul 
Author-X-Name-Last: Geertsema 
Author-Name: Christoph Rainer Schumacher 
Author-X-Name-First: Christoph Rainer 
Author-X-Name-Last: Schumacher 
Title: Parimutuel contests with strategic risk-sensitive bettors 
Abstract:
 Existing models in the parimutuel betting literature typically explain
 betting data by either assuming a single, representative bettor with
 certain risk preferences or by assuming that a number of risk neutral
 bettors compete strategically within a game theoretic framework. We
 construct a theoretical framework of parimutuel markets in which we model
 both strategic interaction <italic>and</italic> individual bettor risk
 preferences, distinguishing between sophisticated insiders and
 recreational outsiders. We solve this model analytically for the optimal
 insider betting amount in a static symmetric Nash equilibrium. A new data
 set of 126 million individual horse race bets in New Zealand from 2006 to
 2014 allows us to calibrate the model. We find that insiders (those
 betting $100 or more) outperform outsiders by 7.5% in terms of realized
 returns. The best fit of the model to the data is obtained when insiders
 are assumed to be risk neutral and to have an information advantage of
 0.08 in probability terms. This finding provides empirical support for the
 common assumption of risk neutrality in strategic interaction models of
 parimutuel betting.
Journal: Applied Economics 
Pages: 1140-1158 
Issue: 12 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093088 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093088 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1140-1158




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Bello 
Author-X-Name-First: Muhammad 
Author-X-Name-Last: Bello 
Author-Name: Awudu Abdulai 
Author-X-Name-First: Awudu 
Author-X-Name-Last: Abdulai 
Title: Measuring heterogeneity, survey engagement and response quality in preferences for organic products in Nigeria 
Abstract:
 The identification of the market potentials of organic products is
 important in the drive towards a sustainable agricultural development in
 sub-Saharan Africa (SSA). However, available evidence shows that valuing
 attributes of credence goods (such as organic products) while using stated
 preference methods faces additional obstacles compared to other normal
 goods. In this study, we examine consumers&#x2019; preferences and
 willingness-to-pay (WTP) for health and environmental attributes of
 organic products in Nigeria. We employ an approach that allows us to
 adequately capture the value of organic products by linking part of the
 heterogeneity across respondents to differences in scale, while making use
 of indicators of survey engagement, without risks of endogeneity bias and
 measurement error that arise from the deterministic methods. The empirical
 results show that market for organic products exists in Nigeria, with
 reduction in pesticide residues attribute attracting the highest value,
 followed by the certification programme. Furthermore, we observe that
 increases in the latent engagement variable lead to a greater probability
 of agreement with statements relating to survey understanding and realism,
 and hence more substantive output.
Journal: Applied Economics 
Pages: 1159-1171 
Issue: 13 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1093089 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093089 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1159-1171




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Zhang 
Author-X-Name-First: Hong 
Author-X-Name-Last: Zhang 
Author-Name: Shuai Gao 
Author-X-Name-First: Shuai 
Author-X-Name-Last: Gao 
Author-Name: Fei Yang 
Author-X-Name-First: Fei 
Author-X-Name-Last: Yang 
Title: Impact of split share structure reform on capital structures: empirical evidence from China&#x2019;s listed companies 
Abstract:
 An econometric model based on a natural experiment and the
 difference-in-differences method is introduced to empirically investigate
 the impact of split share structure reform on capital structures. A total
 of 1026 listed companies in Chinese A-share during 2001--2011 are used as
 the sample for the research and interest-bearing debt ratios (BDRs) are
 taken as a representative indicator for capital structures. The
 theoretical and empirical analysis indicates that both market expansion
 effect and corporate governance effect caused by the split share structure
 reform are associated with an increase in BDR. As far as the timeliness is
 concerned, the effects of split share structure reform on capital
 structures will last 3--4&#xa0;years.
Journal: Applied Economics 
Pages: 1172-1181 
Issue: 13 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1096000 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096000 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1172-1181




Template-Type: ReDIF-Article 1.0
Author-Name: Shabbir Ahmad 
Author-X-Name-First: Shabbir 
Author-X-Name-Last: Ahmad 
Author-Name: Abid A. Burki 
Author-X-Name-First: Abid A. 
Author-X-Name-Last: Burki 
Title: Banking deregulation and allocative efficiency in Pakistan 
Abstract:
 This article examines the impact of deregulation policies on allocative
 efficiency of banks in Pakistan. It investigates whether deregulation has
 impacted the pattern of allocative efficiency of banks and explores which
 bank ownership segment has been more responsive. It uses data from 1991 to
 2005 and explicitly models allocative inefficiency by using the translog
 shadow cost-share system. Empirical results show that overregulation and
 imperfect market structure hampers the ability of banks to make
 competitive decisions. We find evidence of allocative inefficiency leading
 to over-utilization of labour and deposits <italic>vis-&#xe0;-vis</italic>
 operating cost. Empirical results for time-varying allocative efficiency
 show declining levels of allocative inefficiency for state-owned and
 private banks in post-reform period. Deregulation policies induce
 state-owned banks to decrease over-utilization of labour relative to
 deposits and operating cost while private banks succeed in using operating
 cost closer to optimal levels. Hence, policymakers have latitude to
 introduce more reforms without jeopardizing allocative efficiency.
Journal: Applied Economics 
Pages: 1182-1196 
Issue: 13 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1096001 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096001 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1182-1196




Template-Type: ReDIF-Article 1.0
Author-Name: Syouching Lai 
Author-X-Name-First: Syouching 
Author-X-Name-Last: Lai 
Author-Name: Hungchih Li 
Author-X-Name-First: Hungchih 
Author-X-Name-Last: Li 
Author-Name: Bin Li 
Author-X-Name-First: Bin 
Author-X-Name-Last: Li 
Title: Does corporate governance still affect firm performance after controlling the distress factor? 
Abstract:
 We explore the impact of corporate governance on firm performance. We
 first identify whether corporate governance can still be an influential
 factor or has been largely captured by the traditional Fama-French
 three-factor model. More importantly, our study adds a financial distress
 factor to the Fama-French three-factor model to form a four-factor pricing
 model (labelled as the &#x2018;financial distress four-factor
 model&#x2019;). We find that for the US Russell 1000 firms, the financial
 distress four-factor model is the better model of the two models
 considered. We further find that the financial distress four-factor model
 has a higher explanatory power in capturing the return variation. We find
 that the differences between the return of firms with good (weak)
 corporate governance and the expected return are insignificantly different
 from zero for most portfolios in all the two models. The financial
 distress four-factor model, however, has the fewer portfolios with return
 difference being significantly different from zero, implying that
 corporate governance has been better priced in the financial distress
 factor.
Journal: Applied Economics 
Pages: 1197-1209 
Issue: 13 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1096003 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096003 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1197-1209




Template-Type: ReDIF-Article 1.0
Author-Name: Dimos S. Kambouroudis 
Author-X-Name-First: Dimos S. 
Author-X-Name-Last: Kambouroudis 
Author-Name: David G. McMillan 
Author-X-Name-First: David G. 
Author-X-Name-Last: McMillan 
Title: Does VIX or volume improve GARCH volatility forecasts? 
Abstract:
 This article considers whether the inclusion of two additional variables
 can improve volatility forecasts over a standard GARCH-based model. We
 consider three alternative ways of incorporating the volatility index
 (VIX) and trading volume as exogenous variables within a selection of
 GARCH models. We are particularly interested in whether these variables
 have additional incremental forecast power over and above the baseline
 GARCH specification. Our results suggest that both the VIX and volume do
 provide some additional forecast power, and this is generally improved
 when considering both of these series jointly in the model. However, while
 the results may be statistically significant the gain is marginal and the
 coefficient values small. Moreover, in a horse race exercise VIX does not
 outperform the GARCH approach. In answering the question of whether VIX
 produces better forecasts than the GARCH model, then the answer is no, but
 the informational content of VIX cannot be ignored and should be
 incorporated into forecast regressions.
Journal: Applied Economics 
Pages: 1210-1228 
Issue: 13 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1096004 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096004 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1210-1228




Template-Type: ReDIF-Article 1.0
Author-Name: F&#xfc;sun Yenilmez 
Author-X-Name-First: F&#xfc;sun 
Author-X-Name-Last: Yenilmez 
Author-Name: Nuray Girginer 
Author-X-Name-First: Nuray 
Author-X-Name-Last: Girginer 
Title: Comparison of indicators of women&#x2019;s labour between Turkey and EU member states by employing multidimensional scaling analysis and clustering analysis 
Abstract:
 At present, because of social, cultural and economic changes, women
 support the economies of their countries by their status as workers. In
 this research, we aim at comparing the status of Turkey in terms of
 indicators of women in the labour force with that of EU countries, thereby
 revealing the similarities and differences. The variables indicating women
 in the labour forces of the 28 EU countries and Turkey were analysed
 utilizing multidimensional scaling analysis (MDSA) and clustering analysis
 (CA).According to the MDSA, the countries form three different groups in
 two-dimensional space. The clusters formed by the CA are congruent with
 the groups formed according to the MDSA. When compared with EU members,
 Turkey has very low values, particularly in terms of the ratio of working
 women, the ratio of jobless females who are primary or secondary school
 graduates and the ratio of women who are senior high school graduates.
Journal: Applied Economics 
Pages: 1229-1239 
Issue: 13 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1096005 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096005 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1229-1239




Template-Type: ReDIF-Article 1.0
Author-Name: Hu Mei 
Author-X-Name-First: Hu 
Author-X-Name-Last: Mei 
Author-Name: Zehui Zhan 
Author-X-Name-First: Zehui 
Author-X-Name-Last: Zhan 
Author-Name:  Fong 
Author-X-Name-First:  
Author-X-Name-Last: Fong 
Author-Name: Ting Liang 
Author-X-Name-First: Ting 
Author-X-Name-Last: Liang 
Author-Name: Zicheng Ma 
Author-X-Name-First: Zicheng 
Author-X-Name-Last: Ma 
Title: Planned behaviour of tourism students&#x2019; entrepreneurial intentions in China 
Abstract:
				 This research aims to investigate the
 influence of planned behaviour and personal variables on entrepreneurial
 intention in order to explain and improve low entrepreneurial intention
 among tourism students in China. A total of 109 tourism students were
 surveyed to find the key factors affecting their entrepreneurial intention
 by factor analysis. The six hypotheses were then tested in a sample of 267
 Chinese tourism students. According to structural equation modelling
 (SEM), it was found that there are statistically significant relationships
 between personal attitude, subjective norm, perceived behavioural control
 and entrepreneurial intention. Multi-group analysis further showed that
 there are differences between personal attitude, subjective norm and
 perceived behavioural control according to different personal variables.
 The results highlight the importance of taking a subdividing approach when
 researching the factors that influence entrepreneurial intention. Thus, we
 believe a number of implications about the most effective role of creating
 entrepreneurial atmosphere from universities, enhancing tourism
 students&#x2019; self-efficacy, and setting student-centred policies in
 promoting and developing entrepreneurial intention.			    
Journal: Applied Economics 
Pages: 1240-1254 
Issue: 13 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1096006 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096006 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1240-1254




Template-Type: ReDIF-Article 1.0
Author-Name: Bel&#xe9;n Gonz&#xe1;lez-D&#xed;az 
Author-X-Name-First: Bel&#xe9;n 
Author-X-Name-Last: Gonz&#xe1;lez-D&#xed;az 
Author-Name: Rosario Gandoy 
Author-X-Name-First: Rosario 
Author-X-Name-Last: Gandoy 
Title: Offshoring and employment structure in the EU periphery: the case of Spain 
Abstract:
 The effects of offshoring of production have received a great deal of
 interest due to their implications on labour markets. However, the main
 theoretical predictions related to this issue are not always fulfilled in
 the empirical analysis; according to the Stolper--Samuelson theorem, there
 seems to be unanimous support for its effects in advanced countries whose
 production is relocated but not at all for recipient economies of the
 same. Additionally, there is a lack of empirical evidence in countries
 specialized in unskilled-labour tasks which are, at the same time,
 economies with higher relative wages in a global framework such as the
 Spanish economy. In this sense, the aim of this article is to analyse the
 effects of material offshoring in the relative composition of employment
 in the Spanish manufacturing industry during the period 1990--2007.
 Furthermore, we investigate the effects of immigrant labour and the
 temporary employment rate due to its increasing relevance in the Spanish
 economy during the period analysed. Using a generalized methods of moments
 (GMM) approach, our results suggest that, as opposed to most developed
 countries, offshoring in Spain has favoured the demand for blue-collar
 workers. In addition, we confirm that the increase in immigration and the
 increasing use of temporary contracts have enlarged the share of
 low-skilled workers.
Journal: Applied Economics 
Pages: 1255-1270 
Issue: 14 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1096007 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096007 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1255-1270




Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Barbi 
Author-X-Name-First: Massimiliano 
Author-X-Name-Last: Barbi 
Author-Name: Silvia Romagnoli 
Author-X-Name-First: Silvia 
Author-X-Name-Last: Romagnoli 
Title: Optimal hedge ratio under a subjective re-weighting of the original measure 
Abstract:
 In this article we study a risk-minimizing hedge ratio with futures
 contracts, where the risk of the hedged portfolio is measured through a
 spectral risk measure (SRM), thus incorporating the degree of
 agent&#x2019;s risk aversion. We empirically estimate the optimal hedge
 ratio (OHR) using a long time series of UK and US equity indices, the
 EURUSD and EURGBP exchange rates and four liquid commodities (Brent crude
 oil, corn, gold and copper), to represent different asset classes.
 Comparing the results with common OHRs (such as the minimum variance and
 the minimum expected shortfall), we find that the agent&#x2019;s risk
 aversion has a material impact, and should not be ignored in risk
 management.
Journal: Applied Economics 
Pages: 1271-1280 
Issue: 14 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1096008 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096008 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1271-1280




Template-Type: ReDIF-Article 1.0
Author-Name: Frederick Dongchuhl Oh 
Author-X-Name-First: Frederick Dongchuhl 
Author-X-Name-Last: Oh 
Author-Name: Kyung Suh Park 
Author-X-Name-First: Kyung Suh 
Author-X-Name-Last: Park 
Title: Corporate governance structure and product market competition 
Abstract:
 This article assesses the effects of the competitive structure of a
 product market on a firm&#x2019;s corporate governance structure. Our
 model demonstrates that shareholders strategically determine the corporate
 governance structure, including the manager&#x2019;s stock ownership and
 his controlling power over the firm, in order to maximize their utility in
 the product market competition. We find that the manager&#x2019;s stock
 ownership is lower and his controlling power over the firm is higher when
 the firm&#x2019;s product is more profitable or when competition within
 the product market is more severe. The inefficiency of the wealth transfer
 from shareholders to the manager also affects the corporate governance
 structure.
Journal: Applied Economics 
Pages: 1281-1292 
Issue: 14 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1096009 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096009 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1281-1292




Template-Type: ReDIF-Article 1.0
Author-Name: Marizah Minhat 
Author-X-Name-First: Marizah 
Author-X-Name-Last: Minhat 
Author-Name: Nazam Dzolkarnaini 
Author-X-Name-First: Nazam 
Author-X-Name-Last: Dzolkarnaini 
Title: Is executive compensation a substitute governance mechanism to debt financing and leasing? 
Abstract:
 This study examines whether and how CEO equity incentives relate to
 financing choices (i.e., debt and leases). Using manually collected CEO
 compensation and lease data for a sample of large UK firms, we found
 evidence of a negative relationship between CEO equity incentives and firm
 leverage. We also found that CEO equity incentives and leases are
 negatively related. The results are consistent with the theory introduced
 in this study on the substitutability of executive compensation and
 firm&#x2019;s debt/lease financing. Our findings represent fresh empirical
 evidence and renewed interpretation regarding the relationship between
 executive equity-based incentives and firm&#x2019;s financing choices. The
 substitutability theory we introduced here suggests that firms with
 greater use of debt and/or leases will implement less equity-based
 compensation in mitigating the agency cost of equity.
Journal: Applied Economics 
Pages: 1293-1302 
Issue: 14 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100247 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100247 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1293-1302




Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Otterbach 
Author-X-Name-First: Steffen 
Author-X-Name-Last: Otterbach 
Author-Name: Alfonso Sousa-Poza 
Author-X-Name-First: Alfonso 
Author-X-Name-Last: Sousa-Poza 
Title: Job insecurity, employability and health: an analysis for Germany across generations 
Abstract:
 In this article, we use 12 waves of the German Socio-Economic Panel
 (GSOEP) to examine the relationship between job insecurity, employability
 and health-related well-being. Our results indicate that being unemployed
 has a strong negative effect on life satisfaction and health. They also,
 however, highlight the fact that this effect is most prominent among
 individuals over the age of 40. A second observation is that job
 insecurity is also associated with lower levels of life satisfaction and
 health, and this association is quite strong. This negative effect of job
 insecurity is, in many cases, exacerbated by poor employability.
Journal: Applied Economics 
Pages: 1303-1316 
Issue: 14 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100248 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100248 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1303-1316




Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Karoubi 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Karoubi 
Author-Name: R&#xe9;gis Chenavaz 
Author-X-Name-First: R&#xe9;gis 
Author-X-Name-Last: Chenavaz 
Author-Name: Corina Paraschiv 
Author-X-Name-First: Corina 
Author-X-Name-Last: Paraschiv 
Title: Consumers&#x2019; perceived risk and hold and use of payment instruments 
Abstract:
 Consumer decisions regarding retail payment instruments entail private and
 social costs. Due to these social costs, policymakers are increasingly
 trying to understand the determinants of consumer payment choices as
 documented by the European Central Bank&#x2019;s regular publications.
 This article contributes to this understanding by investigating the role
 of perceived risk. Based on an original survey of French consumers, we
 measure the effects of perceived risk on the decisions to hold and use the
 main retail payment instruments: cash, card and cheque. We point to the
 sequential dependence of the decisions to hold and use a payment
 instrument, and study jointly both decisions. The bivariate analysis based
 on risk factors shows that unavailability risk and time risk have the
 greatest transverse influence on holding and using payment instruments.
 Our results, robust to controlling for consumer characteristics, confirm
 their propensity for a quick-to-use and constantly available payment
 instrument. We discuss the relevance of our results for policy making
 purposes.
Journal: Applied Economics 
Pages: 1317-1329 
Issue: 14 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100249 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100249 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1317-1329




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Carvalho 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Carvalho 
Author-Name: Rabindra Nepal 
Author-X-Name-First: Rabindra 
Author-X-Name-Last: Nepal 
Author-Name: Tooraj Jamasb 
Author-X-Name-First: Tooraj 
Author-X-Name-Last: Jamasb 
Title: Economic reforms and human development: evidence from transition economies 
Abstract:
 Do market-oriented economic reforms result in higher levels of human
 well-being? This article studies the impact of macro-level institutional
 and infrastructure reforms on the economic, educational and health
 dimensions of human well-being among 25 transition economies. We use panel
 data econometrics based on the LSDVC technique to analyse the effects of
 market-oriented reforms on the human development index (HDI), as a measure
 of human well-being, from 1992 to 2007. The results show the complexity of
 reform impacts in transition countries. They show that institutional and
 economic reforms led to positive economic effect and significant impacts
 on other dimensions of human development. We find some positive economic
 impacts from infrastructure sectors reforms. However, not every reform
 measure appears to generate positive impacts. Large-scale privatizations
 show negative effects in health and economic outcomes. The overall results
 show the importance of the interaction among different reform measures and
 the combined effect of these on human development.
Journal: Applied Economics 
Pages: 1330-1347 
Issue: 14 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100251 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100251 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1330-1347




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani 
Author-X-Name-First: Hamid 
Author-X-Name-Last: Baghestani 
Author-Name: Ilker Kaya 
Author-X-Name-First: Ilker 
Author-X-Name-Last: Kaya 
Title: Do financial indicators have directional predictability for US home sales? 
Abstract:
 This study investigates the directional predictability of financial
 indicators for home sales across tranquil (1984--2005) and volatile
 (1972--1983 and 2006--2013) periods. We find that the mortgage rate has
 directional predictability for both existing and newly built home sales
 for up to 2005. The federal funds rate generally has directional
 predictability for existing (newly built) home sales in 1984--2005
 (1972--1983). The term spread has directional predictability for home
 sales in 1972--1983 but generally not in the tranquil period of
 1984--2005. Further, unlike mortgage and federal funds rates, the term
 spread has directional predictability for home sales in 2006--2013 and
 thus can help the Fed with useful information (assuming that this trend
 continues).
Journal: Applied Economics 
Pages: 1349-1360 
Issue: 15 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100253 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100253 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1349-1360




Template-Type: ReDIF-Article 1.0
Author-Name: Jungwoo Shin 
Author-X-Name-First: Jungwoo 
Author-X-Name-Last: Shin 
Author-Name: Yeunjoong Kim 
Author-X-Name-First: Yeunjoong 
Author-X-Name-Last: Kim 
Author-Name: Heekoo Nam 
Author-X-Name-First: Heekoo 
Author-X-Name-Last: Nam 
Author-Name: Youngsang Cho 
Author-X-Name-First: Youngsang 
Author-X-Name-Last: Cho 
Title: Economic evaluation of healthcare technology improving the quality of social life: the case of assistive technology for the disabled and elderly 
Abstract:
 Public investments in healthcare technology for the disabled and elderly
 to improve the quality of social life have been vigorous, but the economic
 evaluation of the assistive technology is still lacking. Under this
 circumstance, the purpose of this study is to analyse the socio-economic
 value of developing assistive technologies with the potential to improve
 the quality of social life, especially for disabled and elderly
 individuals. Based on a survey of 400 respondents, the spike model, a
 special form of the contingent valuation method (CVM) is applied to assess
 the value of assistive technologies. In Korea, a household&#x2019;s
 willingness-to-pay (WTP) for the development of assistive technologies is
 US$4.26 per year, on average, in the form of a government-levied tax;
 although many people express zero WTP for the development of these
 technologies, people with higher household savings, higher levels of
 education and higher levels of charity donations have a higher WTP for the
 development of assistive technology. We conclude that although assistive
 technologies have considerable economic value many people express zero WTP
 for the development of these technologies. Therefore, political and social
 educational efforts are necessary to reach social consensus on the
 government investment in such technologies.
Journal: Applied Economics 
Pages: 1361-1371 
Issue: 15 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100254 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100254 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1361-1371




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Lucia Florez-Jimenez 
Author-X-Name-First: Maria Lucia 
Author-X-Name-Last: Florez-Jimenez 
Author-Name: Julian A. Parra-Polania 
Author-X-Name-First: Julian A. 
Author-X-Name-Last: Parra-Polania 
Title: Forward guidance with an escape clause: when half a promise is better than a full one 
Abstract:
 Using a three-equation New Keynesian model we find that incorporating an
 escape clause (EC) into forward guidance (FG) is welfare improving as it
 allows the monetary authority to avoid cases in which the cost of reduced
 flexibility is too high. The EC provides the central bank with another
 instrument (additional to the promised policy rate), the announced
 threshold. The greater the size of the recessionary shock the lower the
 optimal promised rate and the higher the optimal threshold (i.e. the
 higher the probability of delivering the promised rate). While FG with an
 EC is better than discretion for facing any zero-lower bound (ZLB)
 situation, unconditional FG performs better than discretion only in the
 most extreme <inline-formula id="ILM0001"><inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_1100256_ilm0001.gif"/></inline-formula> of ZLB events.
 Furthermore, even for very large recessionary shocks it is not optimal to
 make unconditional promises.
Journal: Applied Economics 
Pages: 1372-1381 
Issue: 15 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100256 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100256 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1372-1381




Template-Type: ReDIF-Article 1.0
Author-Name: Jeungbo Shim 
Author-X-Name-First: Jeungbo 
Author-X-Name-Last: Shim 
Author-Name: Eun-Joo Lee 
Author-X-Name-First: Eun-Joo 
Author-X-Name-Last: Lee 
Author-Name: Seung-Hwan Lee 
Author-X-Name-First: Seung-Hwan 
Author-X-Name-Last: Lee 
Title: A new test procedure for the choice of dependence structure in risk measurement: application to the US and UK stock market indices 
Abstract:
 The choice of an appropriate dependence structure in modelling
 multivariate risks is an important issue because different tail structure
 embedded in copula leads to a different capital requirement for the
 institution. We present how to select a well-specified dependence
 structure to given application data. Using a simple simulation technique,
 we develop a statistical test to assess the adequacy of a specific
 dependence structure. We examine the sensitivity of risk estimates to the
 choice of copulas using the S&P 500 and FTSE 100 stock indices.
Journal: Applied Economics 
Pages: 1382-1389 
Issue: 15 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100257 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100257 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1382-1389




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Dluhosch 
Author-X-Name-First: Barbara 
Author-X-Name-Last: Dluhosch 
Author-Name: Thorsten Hens 
Author-X-Name-First: Thorsten 
Author-X-Name-Last: Hens 
Title: A rigorous approach to business services offshoring and North--North trade 
Abstract:
 Advances in information and communication technologies (ICTs) have gained
 economy-wide importance and raised concerns that even within North--North
 trade neither services nor high-skilled labour may be sheltered from
 international competition. Rather, both may be increasingly susceptible to
 offshoring. We present a novel theoretical framework for analysing
 offshoring with a focus on skilled labour in managing value-added chains.
 Thoroughly modelling demand and supply allows to explicitly track cause
 and effects. Accordingly, effects of business service offshoring are
 completely different and more diverse than those of material offshoring,
 with the effects inter alia depending on whether triggered by trade
 integration or ICT.
Journal: Applied Economics 
Pages: 1390-1401 
Issue: 15 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100259 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100259 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1390-1401




Template-Type: ReDIF-Article 1.0
Author-Name: Anton Bekkerman 
Author-X-Name-First: Anton 
Author-X-Name-Last: Bekkerman 
Author-Name: Gregory Gilpin 
Author-X-Name-First: Gregory 
Author-X-Name-Last: Gilpin 
Title: Crime and punishment: the role of student body characteristics in schools&#x2019; disciplinary behaviours 
Abstract:
 Discretion in schools&#x2019; discipline choices can provide an efficient
 and effective misconduct management structure, but could lead to
 discipline based on unrelated factors. Consequently, schools&#x2019;
 disciplinary decisions can significantly limit students&#x2019; access to
 education by removing students from familiar learning environments. We
 investigate schools&#x2019; disciplinary decisions for serious misconducts
 and show that punishments are more severe in schools that do not report
 misconducts to local law enforcement agencies. Moreover, we show that
 schools that report fewer misconducts to law enforcement impose more
 severe punishments when the student body is characterized as having a
 higher proportion of minority students, lower socioeconomic status
 students and a higher proportion of students who are below the 15th
 percentile of standardized test scores. These results suggest that
 between-school punishment differentials are associated with student body
 traits.
Journal: Applied Economics 
Pages: 1402-1415 
Issue: 15 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100260 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100260 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1402-1415




Template-Type: ReDIF-Article 1.0
Author-Name: Daisuke Tsuruta 
Author-X-Name-First: Daisuke 
Author-X-Name-Last: Tsuruta 
Title: Natural or unnatural selection? The end of lending relationships for small businesses 
Abstract:
 We investigate the situation where small business borrowers and banks end
 their lending relationships. If credit allocation is efficient, banks
 terminate their relationships with risky borrowers. Alternatively, small
 business borrowers are more likely to end their relationships when they
 have poor investment opportunities and do not require borrowed funds.
 However, if the soft budget constraints of banks or credit crunches are a
 significant problem, banks are likely to continue their relationships with
 risky firms or end their relationships with nonrisky firms, which is
 representative of an unnatural credit allocation. Using Japanese
 firm-level data, we show empirically that these relationships end
 naturally, with natural credit allocation supported even during the recent
 global financial crisis.
Journal: Applied Economics 
Pages: 1416-1428 
Issue: 15 
Volume: 48 
Year: 2016 
Month: 3 
X-DOI: 10.1080/00036846.2015.1100262 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100262 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1416-1428




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ping Chang 
Author-X-Name-First: Chun-Ping 
Author-X-Name-Last: Chang 
Author-Name: Chien-Chiang Lee 
Author-X-Name-First: Chien-Chiang 
Author-X-Name-Last: Lee 
Author-Name: GenFu Feng 
Author-X-Name-First: GenFu 
Author-X-Name-Last: Feng 
Author-Name: Shao-Lin Ning 
Author-X-Name-First: Shao-Lin 
Author-X-Name-Last: Ning 
Title: Does higher government debt link to higher social expenditure? New method, new evidence 
Abstract:
 Scholars believe that higher social expenditures are usually linked with
 higher government debts, whereas higher debts reduce social expenditures.
 However, it is reasonable to speculate that higher government debt may
 contribute to higher social spending, while fiscal deficits occur during a
 recession, which commonly creates greater demand for social expenditure.
 For a deeper investigation, this paper revisits the dynamic relationship
 between social spending and public debts in the time-frequency domain,
 using the novel wavelet-coherency analysis as well as the phase-difference
 technique to derive the co-moved and causal relationships between social
 spending and public debts in 13 OECD countries. The evidence identifies a
 dynamic relationship between variables. While higher social expenditures
 increase government debts, the shocks from government debts to social
 expenditures are conversely uncertain. We discover that higher government
 debt does reduce social expenditures, but it may be linked to higher
 social spending. The robustness of partial coherency and phase-difference
 discovers the role of a political party in the decision over social
 welfare programmes in the sample countries.
Journal: Applied Economics 
Pages: 1429-1451 
Issue: 16 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1044745 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044745 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1429-1451




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Scott W. Hegerty 
Author-X-Name-First: Scott W. 
Author-X-Name-Last: Hegerty 
Author-Name: Dan Xi 
Author-X-Name-First: Dan 
Author-X-Name-Last: Xi 
Title: Third-country exchange rate volatility and Japanese--US trade: evidence from industry-level data 
Abstract:
 As an important economic power globally as well as within Asia, Japan is
 susceptible to fluctuations in the yen versus both the dollar and its
 neighbours&#x2019; currencies. The resulting risk, from both sources,
 might, therefore, have important effects on Japanese trade. This study
 incorporates third-country exchange rate volatility (both yen-renminbi and
 dollar-renminbi) into a reduced form trade model for industry trade
 between the US and Japan. As was the case with a previous study that did
 not include these effects, our cointegration analysis finds that most
 industries are unaffected by risk. Third-country effects are, however,
 significant in a number of cases. Interestingly, a large share of US
 industries find that exports increase due to third-country risk,
 suggesting that this volatility is encouraging traders to reorient their
 trade markets by substitution.
Journal: Applied Economics 
Pages: 1452-1462 
Issue: 16 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1100264 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100264 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1452-1462




Template-Type: ReDIF-Article 1.0
Author-Name: Ignacio Cazcarro 
Author-X-Name-First: Ignacio 
Author-X-Name-Last: Cazcarro 
Author-Name: Rosa Duarte 
Author-X-Name-First: Rosa 
Author-X-Name-Last: Duarte 
Author-Name: Julio S&#xe1;nchez Ch&#xf3;liz 
Author-X-Name-First: Julio 
Author-X-Name-Last: S&#xe1;nchez Ch&#xf3;liz 
Author-Name: Cristina Sarasa 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Sarasa 
Author-Name: Ana Serrano 
Author-X-Name-First: Ana 
Author-X-Name-Last: Serrano 
Title: Modelling regional policy scenarios in the agri-food sector: a case study of a Spanish region 
Abstract:
 The agri-food industry has several features of great importance for
 sustainable economic growth in rural areas. The objective of this work is
 to evaluate the effects associated with different scenarios of growth, and
 changes in the regional agri-food industry. These scenarios simulate
 changes in exports and imports, changes in technology and changes in the
 level of industrial integration. We develop a computable general
 equilibrium model calibrated for the region. Our results indicate that
 policies trying to improve the competitiveness and dynamism of strategic
 sectors as the agro-industrial complex in this regional economy exert
 positive effects on its growth and income, having notable impacts on local
 job markets but also in other sectors and activities linked through the
 whole production chain.
Journal: Applied Economics 
Pages: 1463-1480 
Issue: 16 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1102842 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102842 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1463-1480




Template-Type: ReDIF-Article 1.0
Author-Name: Ankin&#xe9;e Kirakozian 
Author-X-Name-First: Ankin&#xe9;e 
Author-X-Name-Last: Kirakozian 
Title: The determinants of household recycling: social influence, public policies and environmental preferences 
Abstract:
 Our article aims at understanding the determinants of households&#x2019;
 selective waste-sorting behaviours, based on data from an original survey
 of 694 individuals in the French Provence--Alpes--C&#xf4;te d&#x2019;Azur
 region. The applied literature focuses mainly on countries with high
 recycling rates. We focus on a region with the lowest recycling rate in
 France, a country that recycles less than the European country average. We
 first apply polychoric principal components analysis to reduce the number
 of explanatory variables to a set of six factors. In a second step, we use
 a probit model to estimate the probability of waste sorting as a function
 of these factors. This model tests several hypotheses emerging from the
 recent literature on behavioural economics applied to households&#x2019;
 selective sorting. This literature pays particular attention to the social
 influence on recycling behaviour, which has been studied mostly by
 sociologists and psychologists. The results of our empirical analysis
 confirm some of the findings in the literature. However, they also
 highlight some unique features, such as social influences having a
 negative impact on recycling. This finding contrasts with most of the
 literature, which finds a positive relationship of social influence on
 pro-environmental behaviour.
Journal: Applied Economics 
Pages: 1481-1503 
Issue: 16 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1102843 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102843 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1481-1503




Template-Type: ReDIF-Article 1.0
Author-Name: Ann Veiderpass 
Author-X-Name-First: Ann 
Author-X-Name-Last: Veiderpass 
Author-Name: Maureen McKelvey 
Author-X-Name-First: Maureen 
Author-X-Name-Last: McKelvey 
Title: Evaluating the performance of higher education institutions in Europe: a nonparametric efficiency analysis of 944 institutions 
Abstract:
 Although a long tradition exists of studying the economics of education,
 performance comparisons of different kinds have traditionally been
 difficult to undertake. An important impediment has been the lack of
 comparable data. To a large extent, this study remedies the shortcomings
 of earlier studies. Our contribution is twofold. First, the current higher
 education policy of contraction and economizing, common to most European
 countries, make knowledge of potential efficiency gains crucial. Second, a
 unique database allows us to study a broad diversity of organizations as
 well as organizations located in a number of different European countries.
 The study suggests evaluating higher education institution (HEI)
 performance in a production theory context, applying the well-known data
 envelopment analysis (DEA) method to a cross section of 944 HEIs in 17
 European countries. The DEA approach is particularly suitable in this
 context where little is known about production technologies and economic
 behaviour of the HEIs. On average, provision of education is found to be
 most efficient in the Slovak Republic followed by Belgium and Latvia,
 while Denmark and Norway display the lowest efficiency. The study also
 indicates a positive relation between efficiency and HEI size and
 efficiency and research intensity. Furthermore, the study points to the
 importance of continued data collection.
Journal: Applied Economics 
Pages: 1504-1514 
Issue: 16 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1102844 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102844 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1504-1514




Template-Type: ReDIF-Article 1.0
Author-Name: Yuhuan Zhao 
Author-X-Name-First: Yuhuan 
Author-X-Name-Last: Zhao 
Author-Name: Song Wang 
Author-X-Name-First: Song 
Author-X-Name-Last: Wang 
Author-Name: Jiaqin Yang 
Author-X-Name-First: Jiaqin 
Author-X-Name-Last: Yang 
Author-Name: Zhonghua Zhang 
Author-X-Name-First: Zhonghua 
Author-X-Name-Last: Zhang 
Author-Name: Ya Liu 
Author-X-Name-First: Ya 
Author-X-Name-Last: Liu 
Title: Input-output analysis of carbon emissions embodied in China-Japan trade 
Abstract:
 Energy-related CO<sub>2</sub> emissions embodied in international trade
 have been widely studied by researchers all over the world. By using the
 bilateral trade input--output (BTIO) approach, this study investigates the
 CO<sub>2</sub> emissions embodied in China--Japan trade during 1995--2009
 and attempts to identify the driving forces for the change in
 CO<sub>2</sub> emissions embodied in China&#x2019;s exports to Japan
 during that period by using structural decomposition analysis (SDA).
 Result shows that CO<sub>2</sub> emissions embodied in China&#x2019;s
 exports increased by about 100% from 1995 to 2009, whereas those embodied
 in China&#x2019;s imports increased by about 500% during the same period.
 Result of this research also reveals that the scale effect had a large
 influence on the increase in CO<sub>2</sub> emissions embodied in
 China--Japan trade. The technical effect greatly decreased CO<sub>2</sub>
 emissions embodied in China&#x2019;s exports to Japan, but obviously
 increased those embodied in imports. The influence of the structural
 effect was relatively small and insignificant in the change of
 CO<sub>2</sub> emissions embodied in China&#x2019;s exports to Japan, but
 was notable in the change of emissions embodied in imports.
Journal: Applied Economics 
Pages: 1515-1529 
Issue: 16 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1102845 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102845 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1515-1529




Template-Type: ReDIF-Article 1.0
Author-Name: &#x141;ukasz Goczek 
Author-X-Name-First: &#x141;ukasz 
Author-X-Name-Last: Goczek 
Author-Name: Bartosz Witkowski 
Author-X-Name-First: Bartosz 
Author-X-Name-Last: Witkowski 
Title: Determinants of card payments 
Abstract:
 Although the development of the card payment system allows for lowering
 the costs of money circulation and thereby leads to significant economic
 gains, relatively small amount of research has been dedicated to the
 analysis of the determinants of this development. Therefore, the aim of
 the article is to seek cross-country determinants of retail card payments
 focusing on trust in the system. The article concentrates on two
 econometric models. One is constructed with the use of representative
 population survey data for Poland, the other is based on panel data from
 the EU countries in the years 2000--2012.
Journal: Applied Economics 
Pages: 1530-1543 
Issue: 16 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1102846 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102846 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1530-1543




Template-Type: ReDIF-Article 1.0
Author-Name: Yener Kandogan 
Author-X-Name-First: Yener 
Author-X-Name-Last: Kandogan 
Title: Economic development, cultural differences and FDI 
Abstract:
 The literature has long analysed the effects of national cultural distance
 on the volume of cross-border FDIs. Considering the increase in
 significance of FDI originating from developing countries, this study
 compares the effect of cultural differences on the stock of FDI from and
 to countries of various levels of economic development to explain how
 economic development affects the impact of cultural distance on FDI.
 Results suggest that the cultural differences tend to be bigger barriers
 for multinationals from developing countries, but they also learn quickly
 how to deal with such differences.
Journal: Applied Economics 
Pages: 1545-1559 
Issue: 17 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1102847 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102847 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1545-1559




Template-Type: ReDIF-Article 1.0
Author-Name: Cheng Cheng 
Author-X-Name-First: Cheng 
Author-X-Name-Last: Cheng 
Title: Does simplifying divorce and marriage registration matter? Evidence from China 
Abstract:
 This article evaluates the marital consequences of easier access to
 divorce and marriage by exploiting a major policy change in China that
 simplifies both. I first use a regression discontinuity design to examine
 the short-run effect and find that simplified registration immediately
 triggered more and faster divorces and marriages. In estimating the
 long-run effect, I adopt a difference-in-differences strategy that further
 exploits cross-sectional variation in urbanization rate. Results indicate
 that the positive effect on marital outcomes, especially on marriage rate,
 persisted in the medium run for 4&#xa0;years.
Journal: Applied Economics 
Pages: 1560-1572 
Issue: 17 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1102848 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102848 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1560-1572




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim 
Author-X-Name-First: Jong-Min 
Author-X-Name-Last: Kim 
Author-Name: Hojin Jung 
Author-X-Name-First: Hojin 
Author-X-Name-Last: Jung 
Author-Name: Li Qin 
Author-X-Name-First: Li 
Author-X-Name-Last: Qin 
Title: Linear time-varying regression with a DCC-GARCH model for volatility 
Abstract:
 This article provides a new linear state space model with time-varying
 parameters for forecasting financial volatility. The volatility estimates
 obtained from the model by using the US stock market data almost exactly
 match the realized volatility. We further compare our model with
 traditional volatility models in the ex post volatility forecast
 evaluations. In particular, we use the superior predictive ability and the
 reality check for data snooping. Evidence can be found supporting that our
 simple but powerful regression model provides superior forecasts for
 volatility.
Journal: Applied Economics 
Pages: 1573-1582 
Issue: 17 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1102853 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102853 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1573-1582




Template-Type: ReDIF-Article 1.0
Author-Name: Miroslav Verbi&#x10d; 
Author-X-Name-First: Miroslav 
Author-X-Name-Last: Verbi&#x10d; 
Author-Name: Marko Ogorevc 
Author-X-Name-First: Marko 
Author-X-Name-Last: Ogorevc 
Title: Ownership and corporate wage policy: the signal and its strength 
Abstract:
 We argue that identification and proper specification of ownership links
 among firms is an important factor and is affecting firm performance on
 different dimensions. We focus on the corporate wage policy, where we show
 that firms with same stockholders have similar average labour costs after
 controlling for standard factors of the wage equation. Moreover, we
 propose new measures of stockholders&#x2019; ability to influence
 firms&#x2019; decision; signal and its strength. The signal measures
 stockholder&#x2019;s preferences over a given corporate policy, while the
 strength function describes stockholder&#x2019;s ability to influence a
 firms&#x2019; corporate policy.
Journal: Applied Economics 
Pages: 1583-1590 
Issue: 17 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1103037 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1103037 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1583-1590




Template-Type: ReDIF-Article 1.0
Author-Name: Syed Hasanat Shah 
Author-X-Name-First: Syed Hasanat 
Author-X-Name-Last: Shah 
Author-Name: Mohsin Hasnain Ahmad 
Author-X-Name-First: Mohsin Hasnain 
Author-X-Name-Last: Ahmad 
Author-Name: Qazi Masood Ahmed 
Author-X-Name-First: Qazi Masood 
Author-X-Name-Last: Ahmed 
Title: The nexus between sectoral FDI and institutional quality: empirical evidence from Pakistan 
Abstract:
 This study investigates short- and long-run bidirectional causality
 between institutional quality and sectoral-level FDI in Pakistan by using
 the ARDL technique. The results confirm that long-run bidirectional
 causality exists between institutional quality and aggregate FDI. The
 in-depth sectoral-level FDI analysis substantiates the presence of
 long-run bidirectional causality between institutional quality and FDI in
 services and manufacturing sectors, while no long-run causality is
 observed between institutional quality and FDI inflows in primary sector.
 Furthermore, the results in the study reveal short-run bidirectional
 causality only between institutional quality and manufacturing FDI and
 report insignificant short-run causal link between institutional quality
 and FDI in primary and services sectors. The overall findings of the study
 suggest that in the long-run institutional quality attract FDI and FDI
 inflows, particularly to manufacturing and services sectors, significantly
 enhance the quality of institutions in Pakistan.
Journal: Applied Economics 
Pages: 1591-1601 
Issue: 17 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1103039 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1103039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1591-1601




Template-Type: ReDIF-Article 1.0
Author-Name: Hestia Jacomina Stoffberg 
Author-X-Name-First: Hestia Jacomina 
Author-X-Name-Last: Stoffberg 
Author-Name: Gary van Vuuren 
Author-X-Name-First: Gary 
Author-X-Name-Last: van Vuuren 
Title: Asset correlations in single factor credit risk models: an empirical investigation 
Abstract:
 The internal ratings--based (IRB) approach (based on a single risk factor
 model) was designed by the Basel Committee on Banking Supervision (BCBS)
 to determine banks&#x2019; regulatory credit risk capital. Key inputs of
 the model -- asset correlations -- are prescribed by the regulator;
 relevant banks must use them for capital determination. To ascertain
 whether these correlations are too onerous or too lenient, empirical asset
 correlations embedded in loss data spanning different loss milieu were
 backed out of the regulatory model. Static and rolling correlations over a
 period of time were compared with the prescribed correlations for
 developed and developing economies and found to be significantly more
 conservative.
Journal: Applied Economics 
Pages: 1602-1617 
Issue: 17 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1103040 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1103040 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1602-1617




Template-Type: ReDIF-Article 1.0
Author-Name: Divya Srivastava 
Author-X-Name-First: Divya 
Author-X-Name-Last: Srivastava 
Author-Name: Alistair McGuire 
Author-X-Name-First: Alistair 
Author-X-Name-Last: McGuire 
Title: The determinants of access to health care and medicines in India 
Abstract:
 This article explores the issue of demand for health care and medicines in
 India where household share of total health expenditure is one of the
 highest among high- and low-income countries. Previous work found that
 important determinants include health status, socio-demographics, income
 and demand for care was inelastic. Compared with previous studies, this
 article uses large household data sets including data on medicine
 expenditure to explore health-seeking behaviour. Count models find that
 determinants include health status, socio-demographic information, health
 insurance, household expenditure and government regulation. Elasticities
 range from &#x2212;0.13 to 0.03 and are generally consistent with
 literature findings. For inpatient care, conditional on having at least
 one hospitalization, the expected number of hospitalizations increases
 with being male and household expenditure. Medicine expenditure accounts
 for a large share of household health expenditure. Low-income individuals
 could experience problems and raises important policy implications on the
 demand and supply side to improve access to health care and medicines for
 patients in India.
Journal: Applied Economics 
Pages: 1618-1632 
Issue: 17 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105921 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105921 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1618-1632




Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Granderson 
Author-X-Name-First: Gerald 
Author-X-Name-Last: Granderson 
Author-Name: Helen Tauchen 
Author-X-Name-First: Helen 
Author-X-Name-Last: Tauchen 
Title: The impacts of membership in multi-hospital systems on cost, productivity growth and technical change 
Abstract:
 We examine whether affiliation in a multi-hospital system contributes to
 higher rates of total factor productivity (TFP) growth, technological
 progress and cost efficiency. With a 1996 to 1999 panel of 248 US
 hospitals (some are private nonprofit (church-related and other nonprofit)
 and the remaining are public (government, nonfederal)), empirical results
 indicate that urban system member hospitals experienced higher rates of
 both TFP growth and technical progress than the rates of TFP growth and
 technical progress experienced by urban nonsystem hospitals. Rural system
 member hospitals experienced smaller rates of both TFP decline and
 technical regress than the rates of TFP decline and technical regress
 experienced by rural nonsystem hospitals.
Journal: Applied Economics 
Pages: 1633-1646 
Issue: 18 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105922 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105922 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1633-1646




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Nguimkeu 
Author-X-Name-First: Pierre 
Author-X-Name-Last: Nguimkeu 
Title: Some effects of business environment on retail firms 
Abstract:
 This paper empirically tests how formal retail entrepreneurs&#x2019;
 perception about the business environment in Cameroon affects the
 performance of the retail sector. I use business owners&#x2019; responses
 from the 2009 Enterprise Survey to estimate an econometric model that
 corrects for heteroscedasticity. The results show that regulation costs,
 corruption, credit constraints, and lack of infrastructure negatively
 affect the gross margins of firms. In contrast, the competition of the
 informal sector -- perceived by many formal entrepreneurs as a major
 constraint -- is positively associated with the gross margins of formal
 firms. Policy implications are discussed.
Journal: Applied Economics 
Pages: 1647-1654 
Issue: 18 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105923 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105923 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1647-1654




Template-Type: ReDIF-Article 1.0
Author-Name: K. Lopatta 
Author-X-Name-First: K. 
Author-X-Name-Last: Lopatta 
Author-Name: M. Tchikov 
Author-X-Name-First: M. 
Author-X-Name-Last: Tchikov 
Title: Do microfinance institutions fulfil their promise? Evidence from cross-country data 
Abstract:
 The concept of microfinance promises poverty reduction and economic
 growth. We empirically challenge this economic and social promise in an
 attempt to prove its fulfilment. Our multivariate regressions of economic
 development variables such as per capita gross national income based on
 PPP converted to international dollars (GNI per capita PPP), GDP growth,
 as well as gross capital formation and labour participation rate against
 specific microfinance institutions&#x2019; (MFI) variables show that the
 success and performance of MFIs significantly influence economic
 development. Microfinance directly influences economic growth through the
 value that MFI performance adds to purchasing power. An indirect impact
 comes from an improvement in capital accumulation and employment rates.
 These insights are valuable as the interdependencies between microfinance
 and economic development that this article verifies offer new and
 progressive insights into purposeful action that can be taken to stimulate
 economic development and growth. Targeted development programmes as well
 as socially responsible investments can be applied in developing economies
 in order to strengthen their growth and alleviate poverty.
Journal: Applied Economics 
Pages: 1655-1677 
Issue: 18 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105924 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105924 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1655-1677




Template-Type: ReDIF-Article 1.0
Author-Name: Samar K. Guharay 
Author-X-Name-First: Samar K. 
Author-X-Name-Last: Guharay 
Author-Name: Gaurav S. Thakur 
Author-X-Name-First: Gaurav S. 
Author-X-Name-Last: Thakur 
Author-Name: Fred J. Goodman 
Author-X-Name-First: Fred J. 
Author-X-Name-Last: Goodman 
Author-Name: Scott L. Rosen 
Author-X-Name-First: Scott L. 
Author-X-Name-Last: Rosen 
Author-Name: Daniel Houser 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Houser 
Title: Integrated data-driven analytics to identify instability signatures in nonstationary financial time series 
Abstract:
 With the objective of identifying instability signatures of the financial
 system, this article integrates two classes of data-driven techniques. The
 first class of techniques is utilized to investigate macroeconomic
 behaviour by aggregating an ensemble of heterogeneous nonstationary
 time-series data and the second class of techniques examines the local
 dynamics of the microstructures in each time series. Moving window
 principal component analysis (PCA) and functional PCA (fPCA) are shown to
 extract collective signatures of the financial system for understanding
 macroeconomic behaviour, and the Synchrosqueezing and Markov switching
 techniques are used to study local dynamics within each individual time
 series. The integrated data analytics successfully identifies the diverse
 events from 1986 to 2012. All events, both major and minor, have been
 identified by fPCA. The major economic events, especially the 2008 Great
 Recession, along with several minor events, showed a strong leading
 indicator in the density index derived from Synchrosqueezing. The
 capability of this integrated analytics suite is demonstrated in this
 article, and it motivates further studies encompassing data sets from
 broader sectors. As a complement to existing model-driven approach, this
 would lead to achieving a robust and reliable method that can help in
 taking measures to avoid catastrophic collapse in the constantly evolving
 financial system.
Journal: Applied Economics 
Pages: 1678-1694 
Issue: 18 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105925 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105925 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1678-1694




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Gausden 
Author-X-Name-First: Robert 
Author-X-Name-Last: Gausden 
Author-Name: Mohammad S. Hasan 
Author-X-Name-First: Mohammad S. 
Author-X-Name-Last: Hasan 
Title: Would information on consumer confidence have helped to predict UK household expenditure during the recent economic crisis?  
Abstract:
 The objective is to investigate whether access to data on consumer
 confidence would have aided forecasts of the growth of UK household
 consumption expenditure over the recent period of economic crisis. A
 disaggregated study is performed on the basis that consideration is given
 not only to household spending in total but also to expenditure on each of
 durable goods, semi-durable goods, nondurable goods and services. The
 empirical analysis demonstrates how modifications which are made to the
 harmonized indicator of the European Commission are able to enhance
 predictive accuracy. However, the benefit which is derived from consulting
 consumer survey data does not extend to an earlier interval over which the
 behaviour of consumer sentiment was far less volatile.
Journal: Applied Economics 
Pages: 1695-1709 
Issue: 18 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105926 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105926 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1695-1709




Template-Type: ReDIF-Article 1.0
Author-Name: M. Ryan Haley 
Author-X-Name-First: M. Ryan 
Author-X-Name-Last: Haley 
Title: A ranking of journals for the aspiring health economist 
Abstract:
 This article identifies and ranks 104 journals that might logically serve
 as the core for the interdisciplinary field of Health Economics. These
 journals are identified by analysing approximately 15 000 articles
 contained in the current CVs of 100 top health economists. Of the nearly
 1200 journals spanned by these CVs, 104 journals were outlets for more
 than five of these top health economists. The 104 journals are ranked
 using eigenfactor and article influence scores as well as the percentile
 rank for each journal within its Institute for Scientific Information
 category. The primary intention is to create a broad-based journal list
 that exposes possible research outlets for aspiring health economists and
 to report the relative rankings of such outlets using established metrics.
Journal: Applied Economics 
Pages: 1710-1718 
Issue: 18 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105927 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105927 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1710-1718




Template-Type: ReDIF-Article 1.0
Author-Name: S. P. Chakravarty 
Author-X-Name-First: S. P. 
Author-X-Name-Last: Chakravarty 
Author-Name: D. D. Thomakos 
Author-X-Name-First: D. D. 
Author-X-Name-Last: Thomakos 
Author-Name: K. I. Nikolopoulos 
Author-X-Name-First: K. I. 
Author-X-Name-Last: Nikolopoulos 
Title: Growth, deregulation and rent seeking in post-war British economy 
Abstract:
 Post-war political consensus about the need for government action to
 rectify market failure began to unravel in the 1970s, and even the need
 for prudential control of banking and finance began to be challenged by
 the start of the 1980s. Regulatory oversight was relaxed in the belief
 that emerging techniques in financial engineering would render irrelevant
 fears of sharp periodic downturns that have historically been the
 consequence of lightly regulated finance. The outcome of this new policy,
 embracing the idea of unregulated markets to deliver greater prosperity,
 is disappointing. We find that the average growth rate of UK GDP and
 output per person employed for three decades from the start of
 liberalization was no greater than that in the previous three post-war
 decades. Cyclical fluctuations were deeper. A remarkable feature of the
 second period is the sharp rise in income inequality in favour of the very
 top earners. An illusion of greater prosperity for a wider segment may
 have been created in the second period due to asset price bubbles and
 housing inflation.
Journal: Applied Economics 
Pages: 1719-1729 
Issue: 18 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105928 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105928 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1719-1729




Template-Type: ReDIF-Article 1.0
Author-Name: Anthony J. Makin 
Author-X-Name-First: Anthony J. 
Author-X-Name-Last: Makin 
Author-Name: Nicholas Rohde 
Author-X-Name-First: Nicholas 
Author-X-Name-Last: Rohde 
Title: Macroeconomic effects of terms of trade fluctuations in commodity exporting advanced economies 
Abstract:
 The paper examines the impact of world commodity prices on national output
 and trade balances in Australia, Canada, New Zealand, and Norway, OECD
 economies that, unlike other advanced economies, are heavily dependent on
 commodity exports. Contrary to Dutch disease theory based on real exchange
 rate adjustment, it highlights the relative price effects of terms of
 trade (ToT) changes on gross domestic product and net exports with
 reference to the experience of this unique set of OECD countries. The
 econometric analysis verifies key predictions of this alternative
 perspective that ToT fluctuations should (i) have no significant short-run
 impact on GDP and that (ii) due to relative price effects a strong
 positive relationship between the ToT and net exports is unlikely.
Journal: Applied Economics 
Pages: 1731-1742 
Issue: 19 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105929 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105929 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1731-1742




Template-Type: ReDIF-Article 1.0
Author-Name: Bedassa Tadesse 
Author-X-Name-First: Bedassa 
Author-X-Name-Last: Tadesse 
Author-Name: Roger White 
Author-X-Name-First: Roger 
Author-X-Name-Last: White 
Title: Do immigrants affect the profile of U.S. exporters? 
Abstract:
 We highlight that an increase in the stock of immigrants corresponds with
 greater numbers of U.S. firms that engage in exporting to foreign markets.
 Our results are obtained from the estimation of a multi-level mixed
 effects model. Overall, the effect of immigrants is relatively larger
 among small- and medium-sized enterprises and is smaller among large-sized
 enterprises. There are, however, considerable differences, both in the
 magnitude and in nature of the observed effects of immigrants on
 manufactured and non-manufactured goods exporters of comparable size
 categories. Similarly, heterogeneity is found in the effects of immigrants
 on the numbers of small-, medium-, and large-sized exporters across home
 country cohorts that are grouped by World Bank income classifications and
 by broad regional classifications of destination markets. These findings
 imply that immigration has the potential to alter the profile of domestic
 firms involved in exporting.
Journal: Applied Economics 
Pages: 1743-1758 
Issue: 19 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105930 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105930 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1743-1758




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys 
Author-X-Name-First: Klaus 
Author-X-Name-Last: Grobys 
Title: Another look at momentum crashes: momentum in the European Monetary Union 
Abstract:
 This article studies the profitability of a selection of prominent
 momentum-based strategies in the European Monetary Union (EMU). In
 contrast to past examples documenting the lack of profitability of
 unconditional price momentum in the most recent decade, the current
 research finds that unconditional price momentum yielded significant
 positive payoffs. There is evidence of option-like behaviour for
 strategies based on intermediate past performance. Surprisingly, there is
 no such evidence for the momentum strategy based on recent past
 performance.
Journal: Applied Economics 
Pages: 1759-1766 
Issue: 19 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1105931 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105931 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1759-1766




Template-Type: ReDIF-Article 1.0
Author-Name: Jos&#xe9; Da Fonseca 
Author-X-Name-First: Jos&#xe9; 
Author-X-Name-Last: Da Fonseca 
Author-Name: Peiming Wang 
Author-X-Name-First: Peiming 
Author-X-Name-Last: Wang 
Title: A joint analysis of market indexes in credit default swap, volatility and stock markets 
Abstract:
 This paper analyses the joint dynamics of the CDS, volatility and stock
 markets using both VAR and Markov regime-switching VAR models with market
 index data. It shows that the joint behaviour of the three markets is
 better characterized by the Markov model with two regimes corresponding to
 low- and high-volatile market conditions. The relationship between changes
 in the market indexes under a regime is consistent with theory and
 persistent; the information transmission process of shocks to the markets
 is similar for the two regimes with a more important role for CDS shock;
 and the volatility in the money market is an important determinant of
 regime-switching. The findings have practical implications, particularly
 for hedging strategies with market indexes under different market
 conditions.
Journal: Applied Economics 
Pages: 1767-1784 
Issue: 19 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109036 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109036 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1767-1784




Template-Type: ReDIF-Article 1.0
Author-Name: Selena Toti&#x107; 
Author-X-Name-First: Selena 
Author-X-Name-Last: Toti&#x107; 
Author-Name: Milo&#x161; Bo&#x17e;ovi&#x107; 
Author-X-Name-First: Milo&#x161; 
Author-X-Name-Last: Bo&#x17e;ovi&#x107; 
Title: Tail risk in emerging markets of Southeastern Europe 
Abstract:
 This article examines the left-tail behaviour of returns on stocks in
 Southeastern Europe (SEE). We apply conditional extreme value theory (EVT)
 approach on daily returns of six stock market indices from SEE between
 2004 and 2013. Predictive performance of value-at-risk (VaR) and expected
 shortfall (ES) based on EVT is compared against several alternatives, such
 as historical simulation and analytical approach based on GARCH with a
 single conditional distribution. Model backtesting with daily returns
 shows that EVT-based models provide more reliable VaR and ES forecasts
 than the alternative models in all six markets. Unlike the alternatives,
 the EVT-based models cannot be rejected as VaR confidence level is
 increased. This emphasizes the importance of extreme events in SEE markets
 and indicates that the ability of a model to capture volatility clustering
 accurately is not sufficient for a correct assessment of risk in these
 markets.
Journal: Applied Economics 
Pages: 1785-1798 
Issue: 19 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109037 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109037 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1785-1798




Template-Type: ReDIF-Article 1.0
Author-Name: Pavel Ciaian 
Author-X-Name-First: Pavel 
Author-X-Name-Last: Ciaian 
Author-Name: Miroslava Rajcaniova 
Author-X-Name-First: Miroslava 
Author-X-Name-Last: Rajcaniova 
Author-Name: d&#x2019;Artis Kancs 
Author-X-Name-First: d&#x2019;Artis 
Author-X-Name-Last: Kancs 
Title: The economics of BitCoin price formation 
Abstract:
 This is the first article that studies BitCoin price formation by
 considering both the traditional determinants of currency price, e.g.,
 market forces of supply and demand, and digital currencies specific
 factors, e.g., BitCoin attractiveness for investors and users. The
 conceptual framework is based on the Barro (1979) model, from which we
 derive testable hypotheses. Using daily data for five years (2009--2015)
 and applying time-series analytical mechanisms, we find that market forces
 and BitCoin attractiveness for investors and users have a significant
 impact on BitCoin price but with variation over time. Our estimates do not
 support previous findings that macro-financial developments are driving
 BitCoin price in the long run.
Journal: Applied Economics 
Pages: 1799-1815 
Issue: 19 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109038 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109038 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1799-1815




Template-Type: ReDIF-Article 1.0
Author-Name: David Ong 
Author-X-Name-First: David 
Author-X-Name-Last: Ong 
Title: Education and income attraction: an online dating field experiment 
Abstract:
 Prior studies have found a robust correlation in the education of dating
 and married couples. However, there is little evidence to suggest that
 such correlations are causal, that is, for the sake of relationship public
 goods such as the pleasures of the enlightened conversations that only a
 common high level of education might support. Being empirical studies,
 they cannot rule out couples matching on other characteristics like
 income, height or health, which are correlated with education, from
 driving results. We contribute to this literature by randomly assigning
 high and low education and income levels to 388 artificial male and female
 profiles on a large online dating website in China. We then counted
 thousands of &#x2018;visits&#x2019; -- clicks on abbreviated profiles,
 which included education and income information, from search engine
 results. We found that men&#x2019;s visits to female profiles were
 unaffected by the profile&#x2019;s assigned education level, while
 women&#x2019;s visits to male profiles increase with the profile&#x2019;s
 education. However, that increase was not increasing on the women&#x2019;s
 own level of education, though their visits to the higher income male
 profiles was increasing on their own education. Our findings suggest that
 the relationship public goods that stem from a common level of high
 education are not at the forefront of either men&#x2019;s or
 women&#x2019;s minds before their first dates, when one might expect such
 goods to play a critical role in the decision to develop the relationship
 further.
Journal: Applied Economics 
Pages: 1816-1830 
Issue: 19 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109039 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109039 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1816-1830




Template-Type: ReDIF-Article 1.0
Author-Name: Khalid M. Kisswani 
Author-X-Name-First: Khalid M. 
Author-X-Name-Last: Kisswani 
Title: Does oil price variability affect ASEAN exchange rates? Evidence from panel cointegration test 
Abstract:
 Using panel data, this article investigates the long-run relationship
 between real oil prices and real exchange rates for selected ASEAN
 countries by utilizing quarterly data from 1973:Q1 to 2013:Q4. The
 modelling implementation starts with the determination of the stationarity
 condition of the variables which are found to be integrated of order one.
 Using Maddala and Wu&#x2019;s (1999) panel cointegration test, the article
 finds evidence of cointegration among the variables. The fully modified
 OLS (FMOLS) and dynamic OLS (DOLS) are then used to estimate the long-run
 relationship between the variables, followed by applying Toda--Yamamoto
 causality test. The findings exhibit bidirectional causality between real
 oil prices and real exchange rates in the long run, where it is highly
 significant.
Journal: Applied Economics 
Pages: 1831-1839 
Issue: 20 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109040 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109040 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1831-1839




Template-Type: ReDIF-Article 1.0
Author-Name: Mejda Mahmoudi Akrout 
Author-X-Name-First: Mejda Mahmoudi 
Author-X-Name-Last: Akrout 
Author-Name: Hakim Ben Othman 
Author-X-Name-First: Hakim 
Author-X-Name-Last: Ben Othman 
Title: Environmental disclosure and stock market liquidity: evidence from Arab MENA emerging markets 
Abstract:
 The objective of this study is to examine the impact of environmental
 disclosure levels on the stock market liquidity of Arab Middle Eastern and
 North African (MENA) companies. For that, a self-constructed disclosure
 index was applied to the annual reports for the years 2010, 2011 and 2012
 and the bid-ask spread was used as a proxy for stock market liquidity.
 Results indicate that levels of environmental disclosure in MENA companies
 are quite low. In addition, using a sample of 276 firm-year observations,
 multivariate analysis shows that the higher the level of environmental
 disclosure provided in the annual reports, the lower the spread between
 the market bid and ask prices, thereby indicating an increase in stock
 market liquidity.
Journal: Applied Economics 
Pages: 1840-1851 
Issue: 20 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109041 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109041 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1840-1851




Template-Type: ReDIF-Article 1.0
Author-Name: Hildegunn Kyvik Nord&#xe5;s 
Author-X-Name-First: Hildegunn Kyvik 
Author-X-Name-Last: Nord&#xe5;s 
Title: Does mutual recognition of qualifications stimulate services trade? The case of the European Union 
Abstract:
 This article analyses the services trade impact of recognition of
 professional qualifications using a unique database compiled by the
 European Commission. It observes that there is large variation in the
 number of regulated professions across the EU. The number of recognitions
 is small relative to total employment in regulated professions.
 Nevertheless, a robust positive relationship between services trade and
 recognition of qualifications is found. Recognition stimulates two-way
 trade between the source and the host country, suggesting that arms-length
 exports as well as cross-border outsourcing take place. Recognitions in
 health and education professions are most strongly related to services
 trade.
Journal: Applied Economics 
Pages: 1852-1865 
Issue: 20 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109042 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109042 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1852-1865




Template-Type: ReDIF-Article 1.0
Author-Name: Russell Kashian 
Author-X-Name-First: Russell 
Author-X-Name-Last: Kashian 
Author-Name: Robert Drago 
Author-X-Name-First: Robert 
Author-X-Name-Last: Drago 
Title: Fee or free checking? Noninterest checking account fees, competition and multimarket banking 
Abstract:
 This article analyses noninterest checking (NIC) account fees using a
 unique data set covering 11&#xa0;875 observations on 1880 banks from 2008
 to 2012. These data identify whether the bank has free or fee checking on
 NIC accounts and, where relevant, the fee and minimum balance to avoid the
 fee. Appealing to shrouded equilibrium theory, we hypothesize that banks,
 and particularly small banks, will avoid drawing the attention of myopic,
 low-income types by having stable policies, or will attempt to confuse
 depositors with contradictory policy shifts in the fee and minimum balance
 requirements. Competition and small bank size should favour consumers, but
 the meaning of &#x2018;favour&#x2019; is complicated by large depositors
 and the banks subsidizing small depositors with NIC accounts.The results
 support the avoid attention hypothesis, particularly for single-market
 banks, and weakly support the confuse depositors hypothesis. The largest
 banks, including three too big to fail banks, are most responsive to
 competition, with single-market banks far less responsive. Competition may
 be responsible for a dramatic decline in free checking among the largest
 banks, and substantial increases in minimum balances for those banks,
 since these effectively reduced subsidies. Simultaneously, single-market
 banks became more likely to offer free checking.
Journal: Applied Economics 
Pages: 1866-1880 
Issue: 20 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109043 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109043 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1866-1880




Template-Type: ReDIF-Article 1.0
Author-Name: Cristiana Donati 
Author-X-Name-First: Cristiana 
Author-X-Name-Last: Donati 
Title: Firm growth and liquidity constraints: evidence from the manufacturing and service sectors in Italy 
Abstract:
 We use a large firm-level panel data set to analyse the relevance of
 liquidity constraints on firm growth in Italy. In most European countries,
 mainstream financial institutions are scantly able to provide affordable
 credit facilities to small firms. Thus, these firms are forced to finance
 their growth almost exclusively through retained earnings. We estimate a
 dynamic version of Gibrat-law, incorporating cash flow as a measure of
 financial constraints, for two different size classes within small and
 medium size enterprises and for several industries in manufacturing and
 service sectors. The findings show that, in general, small manufacturing
 firms have higher growth-cash flow sensitivities with respect to medium
 firms. Conversely, our results highlight, for the services, a significant
 heterogeneity in the impact of liquidity constraints on firm growth. In
 particular, the sensitivity of growth rates to the cash flow appears
 relatively high for small firms belonging to Knowledge Intensive Business
 Services. Validation of Gibrat-law in the services suggests that an
 important group of industries, with a superior capacity of encouraging
 firm&#x2019;s competitiveness, need more financial resources to promote
 their growth and that of the manufacturing sectors with whom they are
 connected.
Journal: Applied Economics 
Pages: 1881-1892 
Issue: 20 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109044 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1881-1892




Template-Type: ReDIF-Article 1.0
Author-Name: Dong Hee Suh 
Author-X-Name-First: Dong Hee 
Author-X-Name-Last: Suh 
Author-Name: Charles B. Moss 
Author-X-Name-First: Charles B. 
Author-X-Name-Last: Moss 
Title: Dynamic interfeed substitution: implications for incorporating ethanol byproducts into feedlot rations 
Abstract:
 This study examines interfeed substitution with a focus on the
 relationship between distiller&#x2019;s dried grain with solubles (DDGS)
 and traditional feed grains. The dynamic linear logit model is used for
 the empirical analysis of interfeed substitution. The estimation results
 reveal that an increase in livestock and poultry outputs reduces the
 relative shares of corn and soybean meal to DDGS. The estimated adjustment
 rate indicates that the demand for feed grains is responsive in the short
 run with about 37% of the long-run response. This study also finds that
 the demand for corn and soybean meal remains inelastic even in the long
 run, showing the possibilities that livestock and poultry producers face
 high feed costs in response to an increase in the prices of corn and
 soybean meal. The pressures on feed costs can be alleviated by the
 substitutable relationship between DDGS and corn, but the substitution of
 DDGS for corn has a potential to provide livestock and poultry with
 different nutritional contents.
Journal: Applied Economics 
Pages: 1893-1901 
Issue: 20 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109046 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109046 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1893-1901




Template-Type: ReDIF-Article 1.0
Author-Name: Takuya Hasebe 
Author-X-Name-First: Takuya 
Author-X-Name-Last: Hasebe 
Title: Estimating the variance of decomposition effects 
Abstract:
 We derive the asymptotic variance of the Blinder--Oaxaca decomposition
 effects. We show that the delta method approach that builds on the
 assumption of fixed regressors understates true variability of the
 decomposition effects when regressors are stochastic. Our proposed
 variance estimator takes randomness of regressors into consideration. Our
 approach is applicable to both the linear and nonlinear decompositions.
 Previously, only a bootstrap method has been a valid option for nonlinear
 decompositions. As our derivation follows the general framework of
 m-estimation, it is straightforward to extend our variance estimator to a
 cluster-robust variance estimator. We demonstrate the finite-sample
 performance of our variance estimator with a Monte Carlo study and present
 a real-data application.
Journal: Applied Economics 
Pages: 1902-1913 
Issue: 20 
Volume: 48 
Year: 2016 
Month: 4 
X-DOI: 10.1080/00036846.2015.1109047 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1902-1913




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaojun Chu 
Author-X-Name-First: Xiaojun 
Author-X-Name-Last: Chu 
Author-Name: Chongfeng Wu 
Author-X-Name-First: Chongfeng 
Author-X-Name-Last: Wu 
Author-Name: Jianying Qiu 
Author-X-Name-First: Jianying 
Author-X-Name-Last: Qiu 
Title: A nonlinear Granger causality test between stock returns and investor sentiment for Chinese stock market: a wavelet-based approach 
Abstract:
 In this article, we re-examine the causality between the stock returns and
 investor sentiment in China. The number of net added accounts is used as a
 proxy for investor sentiment. To mimic the different investment horizons
 of market participants, we use the wavelet method to decompose stock
 returns and investor sentiment into time series with different
 frequencies. Additionally, we test for nonlinear causal relationships
 based on Taylor series approximation. Our results indicate that there is a
 one-directional linear causality from stock returns to investor sentiment
 on the original series, while there is a strong bi-directional nonlinear
 causality between stock returns and investor sentiment at different
 timescales.
Journal: Applied Economics 
Pages: 1915-1924 
Issue: 21 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1109048 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1915-1924




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Bollen 
Author-X-Name-First: Bernard 
Author-X-Name-Last: Bollen 
Author-Name: Philip Gharghori 
Author-X-Name-First: Philip 
Author-X-Name-Last: Gharghori 
Title: How is <italic>&#x3b2;</italic> related to asset returns? 
Abstract:
 Existing empirical evidence for the relevance of the
 <italic>&#x3b2;</italic> in modelling asset returns is mixed. Drawing on
 conditional tests of <italic>&#x3b2;</italic> first proposed by
 Pettengill, Sundaram and Mathur (1995) and extended by Bollen (2010),
 empirical evidence employing monthly data is presented that indicates that
 <italic>&#x3b2;</italic> is highly related to variability of asset returns
 but not to the level of asset returns. This result is consistent with the
 predictions of the market model but not with the predictions of the CAPM.
 It is concluded that <italic>&#x3b2;</italic> remains a useful construct
 in financial economics but may have a differing role in financial
 economics than the conventional wisdom asserts.
Journal: Applied Economics 
Pages: 1925-1935 
Issue: 21 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1111985 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111985 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1925-1935




Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova 
Author-X-Name-First: Petra 
Author-X-Name-Last: Maresova 
Author-Name: Hana Mohelska 
Author-X-Name-First: Hana 
Author-X-Name-Last: Mohelska 
Author-Name: Kamil Kuca 
Author-X-Name-First: Kamil 
Author-X-Name-Last: Kuca 
Title: Social and family load of Alzheimer&#x2019;s disease 
Abstract:
 As the World Health Organization reports, mental illnesses have a serious
 impact on more than 25% of all population people worldwide at some time
 during their lives. Mental illnesses are universal; they affect people of
 any age, both women and men, the rich and the poor, no matter from which
 urban and rural environment they come from. Mental illnesses have an
 enormous economic effect on societies and on the quality of
 people&#x2019;s life, including their families. The purpose of this study
 is to describe social and economic aspects of Alzheimer&#x2019;s disease
 (AD) with respect to the early diagnosis. The authors provide an analysis
 of costs of treatment and care in the selected countries where the data
 from the available studies are recalculated into comparable quantities.
 Furthermore, the authors analyse aspects and possibilities of care for
 patients with AD in the informal (home) environment in compliance with
 individual phases of this disease. In the article, the method of research
 of available sources focusing on social and economic issues of AD is used.
 In order to compare costs of treatment and care of the AD patients, the
 Qualitative Comparative Analysis Method is exploited. The analyses have
 shown that the metric systems for monitoring the direct and indirect costs
 for the individual phases of AD are different.
Journal: Applied Economics 
Pages: 1936-1948 
Issue: 21 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1111986 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111986 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1936-1948




Template-Type: ReDIF-Article 1.0
Author-Name: Hoda El-Enbaby 
Author-X-Name-First: Hoda 
Author-X-Name-Last: El-Enbaby 
Author-Name: Rana Hendy 
Author-X-Name-First: Rana 
Author-X-Name-Last: Hendy 
Author-Name: Chahir Zaki 
Author-X-Name-First: Chahir 
Author-X-Name-Last: Zaki 
Title: Do SPS measures matter for margins of trade? Evidence from firm-level data 
Abstract:
 According to the World Trade Organization (WTO) standards, countries are
 allowed to adapt regulations under the Sanitary and phyto-sanitary (SPS)
 and technical barriers to trade (TBT) agreements in order to protect
 human, animal and plant health, as well as environment and human safety.
 Yet, these measures can become an impediment in international trade,
 especially for developing countries. Therefore, using an Egyptian
 firm-level data set and a new database on specific trade concerns raised
 in the TBT and SPS committees at the WTO, we analyse the effects of
 product standards on two related aspects: first, the probability to export
 (firm-product extensive margin), and second, the value exported
 (firm-product intensive margin). We merge this data set with a new
 database on specific trade concerns raised in the TBT and SPS committees
 at the WTO. Our main findings show that SPS measures imposed on Egyptian
 exporters have a negative impact on the probability of exporting a new
 product to a new destination. By contrast, the intensive margin of exports
 is not significantly affected by such measures.
Journal: Applied Economics 
Pages: 1949-1964 
Issue: 21 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1111987 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111987 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1949-1964




Template-Type: ReDIF-Article 1.0
Author-Name: Michelle S. Segovia 
Author-X-Name-First: Michelle S. 
Author-X-Name-Last: Segovia 
Author-Name: Marco A. Palma 
Author-X-Name-First: Marco A. 
Author-X-Name-Last: Palma 
Title: Buying your way into a healthier lifestyle: a latent class analysis of healthy food purchases 
Abstract:
 A nonhypothetical second-price Vickrey auction was conducted to elicit
 consumer preferences and willingness-to-pay (WTP) for vegetable
 attributes, including production technique, origin, taste and health
 benefits. Using a latent class analysis (LCA) we segmented participants
 based on health-driven motivations, WTP estimates and socio-economic
 characteristics. Two latent classes were found and characterized as:
 &#x2018;Health Conscious&#x2019; and &#x2018;Health Redeemers&#x2019;. In
 particular, the &#x2018;Health Conscious&#x2019; consumers presented
 healthy lifestyle habits, expressed price premiums for domestic and
 local-specialty food products after a blind tasting treatment, but they
 did not have price premiums for health benefits of the products. On the
 contrary, the &#x2018;Health Redeemers&#x2019; presented unhealthy
 lifestyles but they were willing to pay more for healthy food products,
 perhaps in an attempt to make up for their unhealthy habits.
Journal: Applied Economics 
Pages: 1965-1977 
Issue: 21 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1111988 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111988 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1965-1977




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Pedraja-Chaparro 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Pedraja-Chaparro 
Author-Name: Daniel Sant&#xed;n 
Author-X-Name-First: Daniel 
Author-X-Name-Last: Sant&#xed;n 
Author-Name: Rosa Simancas 
Author-X-Name-First: Rosa 
Author-X-Name-Last: Simancas 
Title: The impact of immigrant concentration in schools on grade retention in Spain: a difference-in-differences approach 
Abstract:
 Since the late 1990s, Spain has played host to a sizeable flow of
 immigrants who have been absorbed into the compulsory stage of the
 education system. In this article, our aim is to assess the impact of that
 exogenous increase in the number of immigrant students from 2003 to 2009
 on grade retention using Spanish data from PISA 2003 and 2009. For this
 purpose, we use the difference-in-differences method as a dose treatment
 capable of detecting whether the immigrant concentration has had a
 significant effect on student performance. Our results evidenced that
 their arrival does not on average decrease school promotion rates with
 respect to 2003 and is even beneficial to native students. However,
 although the concentration of immigrant students at the same school does
 have a negative impact on immigrant students generating more grade
 retention, native students are unaffected until concentrations of
 immigrant students is above 15%.
Journal: Applied Economics 
Pages: 1978-1990 
Issue: 21 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1111989 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111989 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1978-1990




Template-Type: ReDIF-Article 1.0
Author-Name: Mahfuz Kabir 
Author-X-Name-First: Mahfuz 
Author-X-Name-Last: Kabir 
Author-Name: Ruhul Salim 
Author-X-Name-First: Ruhul 
Author-X-Name-Last: Salim 
Title: Is trade in electrical and electronic products sensitive to IPR protection? Evidence from China&#x2019;s exports 
Abstract:
 This article attempts to provide the first empirical evidence on the
 effect of intellectual property rights (IPRs) on China&#x2019;s export of
 electrical and electronic products. It adopts a gravity model for
 unbalanced panel data of China&#x2019;s 146 important trading partners
 over the period of 2002--2012. To eliminate the effects of FDI in
 determining the linkage between IPR and exports, the panel excludes the
 destination countries and territories that invest in China. The results
 reveal that the level of IPR protection in destination countries has a
 positive impact on China&#x2019;s flow of exports. Further analysis on
 data disaggregated by IPR score demonstrates that a higher level of IPR
 protection in destination countries and territories is positively linked
 with China&#x2019;s exports of these items in each of the IPR protection
 clusters and indicates a strong market power effect by the interplay
 between R&D expenditure and IPR in the destinations. Finally, both market
 power and market expansion effects are found to be prevalent in the
 destinations, as implied by the coefficient of IPR protection
 disaggregated by income level of China&#x2019;s export destinations. The
 results generally resemble those in the literature that describe the
 linkage between IPR protection and trade flows.
Journal: Applied Economics 
Pages: 1991-2005 
Issue: 21 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1111990 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111990 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1991-2005




Template-Type: ReDIF-Article 1.0
Author-Name: Panagiotis Anagnostidis 
Author-X-Name-First: Panagiotis 
Author-X-Name-Last: Anagnostidis 
Author-Name: George Papachristou 
Author-X-Name-First: George 
Author-X-Name-Last: Papachristou 
Author-Name: Nikos S. Thomaidis 
Author-X-Name-First: Nikos S. 
Author-X-Name-Last: Thomaidis 
Title: Liquidity commonality in order-driven trading: evidence from the Athens Stock Exchange 
Abstract:
 We examine the presence of liquidity commonality in the order-driven
 Athens Stock Exchange (ASE). Unlike the majority of liquidity commonality
 studies that focus on the bid--ask spread, our analysis extends deeper in
 the Limit Order Book, providing insight on the price impact of both small
 and large trades. We utilize a 6-month FTSE/ATHEX-20 intraday data set to
 estimate the liquidity factor model of Chordia et al. (2000). To this end,
 we conduct single-equation analysis as well as panel data analysis with
 the use of two-way clustered errors, correcting for simultaneous firm and
 time correlations. Moreover, we apply standard principal component
 analysis on stock liquidities to extract the marketwide liquidity
 component. We find that liquidity commonality is low at the bid--ask
 spread, whereas it increases deeper in the book; consequently, large
 traders face liquidity risks associated with both individual stock and
 marketwide illiquidity. Moreover, our empirical evidence hints that
 liquidity commonality is asynchronous, suggesting that the ASE trading
 process includes various levels of information speed. Our analysis
 contributes to the understanding of liquidity commonality in order-driven
 trading, especially in emerging markets like the ASE where trading
 activity is limited and information speed is low.
Journal: Applied Economics 
Pages: 2007-2021 
Issue: 22 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1111991 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111991 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2007-2021




Template-Type: ReDIF-Article 1.0
Author-Name: Elina De Simone 
Author-X-Name-First: Elina 
Author-X-Name-Last: De Simone 
Author-Name: Paulo Reis Mourao 
Author-X-Name-First: Paulo Reis 
Author-X-Name-Last: Mourao 
Title: Rhetoric on the economy: have European parties changed their economic messages? 
Abstract:
 This study analyses the determinants of dispersion of economic issue
 mentions in European party manifestos. We examined three main economic
 domains (governmental control of the economy, free market capitalism and
 support for the welfare state) as consequences of globalization forces,
 economic conditions, partisanship and electoral turnout. Employing
 aggregate-level Comparative Manifesto Project (CMP) data from legislative
 elections in 15 European countries from 1970 to 2010, we confirm that
 parties hold a common view of the salience of economic control of the
 state as a consequence of globalization pressure and economic growth
 levels. Partisanship of the cabinets (regardless of the political
 orientation) counteracted issue salience concentration in the welfare
 domain. Government size favoured dispersion in the free market realm. Our
 results do not indicate clear homogenization of parties&#x2019; economic
 messages in elections over the last 40 years.
Journal: Applied Economics 
Pages: 2022-2036 
Issue: 22 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1111992 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111992 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2022-2036




Template-Type: ReDIF-Article 1.0
Author-Name: &#x160;tefan Ly&#xf3;csa 
Author-X-Name-First: &#x160;tefan 
Author-X-Name-Last: Ly&#xf3;csa 
Author-Name: Igor Fedorko 
Author-X-Name-First: Igor 
Author-X-Name-Last: Fedorko 
Title: What drives intermediation costs? A case of tennis betting market 
Abstract:
 We demonstrate that there is a considerable variation in bookmaker margins
 across matches, time and bookmakers. Our results imply that using match,
 tournament and players&#x2019; characteristics explains the variations in
 margins hence, they can be helpful in managing intermediation cost in a
 market of state-contingent assets: fixed-odds betting markets. We also
 provide evidence that bookmakers protect themselves by increasing odds on
 the favourite player, thus attracting more bettors to the favourite
 player, while deterring bettors from betting on the underdog by reducing
 the odds. By that process, bookmakers are possibly sacrificing a portion
 of their margin.
Journal: Applied Economics 
Pages: 2037-2053 
Issue: 22 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1111993 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111993 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2037-2053




Template-Type: ReDIF-Article 1.0
Author-Name: Ruwan Jayathilaka 
Author-X-Name-First: Ruwan 
Author-X-Name-Last: Jayathilaka 
Author-Name: Saroja Selvanathan 
Author-X-Name-First: Saroja 
Author-X-Name-Last: Selvanathan 
Author-Name: Jayatilleke S. Bandaralage 
Author-X-Name-First: Jayatilleke S. 
Author-X-Name-Last: Bandaralage 
Title: Is there a link between alcohol consumption and the level of poverty? 
Abstract:
 In many developing countries, in addition to household income, there are a
 number of other socio-economic determinants of poverty. One such hidden
 socio-economic factor is alcohol consumption and some studies argue that
 there is a link between alcohol consumption and poverty. The main aim of
 this study is to measure the effects of alcohol consumption on the level
 of poverty in a systematic way. Using Sri Lanka as a case study, this
 article demonstrates that the consumption of various types of alcoholic
 beverages, particularly, the illegal beverages, has a significant positive
 association with the level of poverty. The findings of this study suggest
 that, in Sri Lanka, the consumption of illegal alcoholic beverages
 increases the likelihood of being in a poor household by 2--3%. The
 results of this study also find that households who are characterized as
 nonpoor but are just above the poverty line behave more like the poor
 rather than the nonpoor in terms of alcohol consumption. Some of the
 conclusions from this Sri Lankan case study can be applied to other
 developing countries.
Journal: Applied Economics 
Pages: 2054-2063 
Issue: 22 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1114574 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114574 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2054-2063




Template-Type: ReDIF-Article 1.0
Author-Name: Marina Barboza Camargo 
Author-X-Name-First: Marina Barboza 
Author-X-Name-Last: Camargo 
Author-Name: Carlos Roberto Azzoni 
Author-X-Name-First: Carlos Roberto 
Author-X-Name-Last: Azzoni 
Title: Deciding on large scale investments 
Abstract:
 This study analyses the importance of investment factors across investment
 sizes and the frequency of large investment decisions within the firms. We
 use data from 1442 investment decisions made by 226 Brazilian firms
 between 1997 and 2010. The results indicate that the influence of
 investment factors is different for investments of different sizes. The
 results also indicate that the increase in the frequency of large-scale
 investment decisions made by the firm influences especially the role of
 cash flow, diminishing its importance as an investment factor. This result
 allows one to argue that, probably, firms more experienced in large-scale
 decisions could be bolder in their decision-making process, relying less
 on the accumulation of funds through cash flow.
Journal: Applied Economics 
Pages: 2064-2077 
Issue: 22 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1114575 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114575 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2064-2077




Template-Type: ReDIF-Article 1.0
Author-Name: G. Lesur-Irichabeau 
Author-X-Name-First: G. 
Author-X-Name-Last: Lesur-Irichabeau 
Author-Name: O. Guyader 
Author-X-Name-First: O. 
Author-X-Name-Last: Guyader 
Author-Name: M. Fr&#xe9;sard 
Author-X-Name-First: M. 
Author-X-Name-Last: Fr&#xe9;sard 
Author-Name: C. Leroy 
Author-X-Name-First: C. 
Author-X-Name-Last: Leroy 
Author-Name: K. Latouche 
Author-X-Name-First: K. 
Author-X-Name-Last: Latouche 
Author-Name: L. Le Grel 
Author-X-Name-First: L. 
Author-X-Name-Last: Le Grel 
Title: Information on sellers and buyers characteristics: added value to explain price formation at primary fish markets in managed French scallop fisheries 
Abstract:
 The aim of this article is to explore, through a hedonic approach, the
 factors that might explain the price variability for the French-managed
 fishery of scallop at primary fish markets. In addition to factors
 classically identified in the current literature like intrinsic product
 characteristics or markets situation, the characteristics of operators are
 tested. The relationships of loyalty between sellers and buyers, and
 market assiduity are notably considered.
Journal: Applied Economics 
Pages: 2078-2092 
Issue: 22 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1114576 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114576 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2078-2092




Template-Type: ReDIF-Article 1.0
Author-Name: Stephan Marette 
Author-X-Name-First: Stephan 
Author-X-Name-Last: Marette 
Author-Name: Jayson L. Lusk 
Author-X-Name-First: Jayson L. 
Author-X-Name-Last: Lusk 
Author-Name: F. Bailey Norwood 
Author-X-Name-First: F. Bailey 
Author-X-Name-Last: Norwood 
Title: Choosing for others 
Abstract:
 Experiments conducted in the US and France were used to study how
 individuals make trade-offs between health and taste for themselves and
 others. When someone receives a choice made for them that differs from
 their preference, they experience a welfare loss; at least in the
 short-term. We measure the empirical magnitude of this loss, and suggest
 it play a role in assessing the desirability of paternalistic policies
 motivated by behavioural economics. We show that the welfare loss changes
 with the provision of new information and the impact of this information
 differs for the two countries.
Journal: Applied Economics 
Pages: 2093-2111 
Issue: 22 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1114577 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114577 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2093-2111




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin M. Zhao 
Author-X-Name-First: Kevin M. 
Author-X-Name-Last: Zhao 
Title: Short sale constraints and information-driven short selling: evidence on NASDAQ 
Abstract:
 This article examines the impact of the NASDAQ&#x2019;s bid test rule on
 the information content of short sales surrounding the U.S. Security
 Exchange Commission introduction of the pilot programme in 2005. It shows
 that abnormal short selling prior to analyst recommendation changes were
 very informative when stocks were restricted by the bid test rule. Such
 informativeness of short selling disappears when the bid test rule was
 temporarily suspended for pilot stocks. The results are robust after
 controlling for various factors that may contribute to this anomaly. Both
 the shorting efficiency hypothesis and the regulatory concern hypothesis
 are developed to provide explanations for this anomaly. Additional tests
 show that the regulatory concern is more consistent with the data.
Journal: Applied Economics 
Pages: 2113-2124 
Issue: 23 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1114578 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114578 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2113-2124




Template-Type: ReDIF-Article 1.0
Author-Name: Hojin Jung 
Author-X-Name-First: Hojin 
Author-X-Name-Last: Jung 
Title: Renegotiation on incomplete procurement contracts 
Abstract:
 This article examines the impact of incomplete contracts on procurement
 costs in road construction auctions. <italic>Ex ante</italic> contracts in
 these auctions often fail to specify all of the potential construction
 contingencies, and consequently, changes in scope are necessary after
 construction begins. Using Vermont road construction contract data, this
 study finds evidence that there is a statistically significant difference
 in costs of firms between auctions with and without extra work
 adjustments. Substantial adaptation costs are responsible for the higher
 procurement outlays in incomplete contract. I also find that bidders
 inflate their bids to incorporate risk premiums in incomplete contracts;
 however, my estimates suggest that this bidding behaviour does not affect
 their profit margins.
Journal: Applied Economics 
Pages: 2125-2138 
Issue: 23 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1114579 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114579 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2125-2138




Template-Type: ReDIF-Article 1.0
Author-Name: Mar&#xed;a Lorena Mar&#xed; Del Cristo 
Author-X-Name-First: Mar&#xed;a Lorena 
Author-X-Name-Last: Mar&#xed; Del Cristo 
Author-Name: Marta G&#xf3;mez-Puig 
Author-X-Name-First: Marta 
Author-X-Name-Last: G&#xf3;mez-Puig 
Title: Fiscal sustainability and dollarization: the case of Ecuador 
Abstract:
 This article tries to disentangle the dynamic relationships between fiscal
 variables and economic activity in a small emerging economy characterized
 by full dollarization, namely, Ecuador. We find that fiscal policy in
 Ecuador seems to be sustainable, explained by its policy of debt payment
 through oil revenues, rather than by a fiscal discipline that
 dollarization is supposed to encourage. The non-oil tax revenues variable
 is a purely adjusting variable. This result suggests that in a dollarized
 country that cannot benefit from the &#x2018;seignorage&#x2019; revenues,
 the reliance on volatile oil revenues and on smoothing tax revenues leaves
 the economy&#x2019;s fiscal sustainability vulnerable.
Journal: Applied Economics 
Pages: 2139-2155 
Issue: 23 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1114580 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114580 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2139-2155




Template-Type: ReDIF-Article 1.0
Author-Name: Amalia Morales-Zumaquero 
Author-X-Name-First: Amalia 
Author-X-Name-Last: Morales-Zumaquero 
Author-Name: Sim&#xf3;n Sosvilla-Rivero 
Author-X-Name-First: Sim&#xf3;n 
Author-X-Name-Last: Sosvilla-Rivero 
Title: A contribution to the empirics of convergence in real GDP growth: the role of financial crises and exchange-rate regimes 
Abstract:
 This paper investigates the convergence in real gross domestic product
 growth focusing on the impact of financial crises (i.e. banking crises,
 currency crises and debt crises) and nominal exchange-rate regimes (i.e.
 fixed, intermediate and flexible) on convergence. To that end, we compute
 four convergence indicators (<italic>&#x3c3;</italic>-convergence,
 <italic>&#x3b3;</italic>-convergence, absolute
 <italic>&#x3b2;</italic>-convergence and conditional
 <italic>&#x3b2;</italic>-convergence) for 163 countries classified into
 four income groups during the period 1970--2011. The results suggest that
 (i) there is evidence in favour of <italic>&#x3c3;</italic>-convergence
 and <italic>&#x3b3;</italic>-convergence only for high-income countries;
 (ii) absolute and conditional <italic>&#x3b2;</italic>-convergence are
 present in each of the four income groups of the countries under study;
 (iii) exchange-rate regimes seem to play some role in upper-middle and
 lower-middle-income countries; and (iv) financial crises have a negative
 and significant impact on GDP growth independently of the income level of
 the countries.
Journal: Applied Economics 
Pages: 2156-2169 
Issue: 23 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1114581 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114581 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2156-2169




Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett 
Author-X-Name-First: Lila J. 
Author-X-Name-Last: Truett 
Author-Name: Dale B. Truett 
Author-X-Name-First: Dale B. 
Author-X-Name-Last: Truett 
Title: The motor vehicle industry in an emerging nation: the case of Brazil 
Abstract:
 As in other emerging nations, in Brazil, the motor vehicle industry is
 considered to be strategically important for economic development because
 of its backward and forward linkages and possibilities for export-led
 growth. This study analyses prospects for the industry by estimating an
 industry-level cost function that includes output of both vehicles and
 component parts with capital, labour and intermediate goods as inputs. The
 cost elasticity of output (an indicator of scale properties) and the
 elasticity relationships among inputs are explored. One unexpected outcome
 of the work that appears to be robust is that during early years of the
 study period, the industry had constant returns or even diseconomies of
 scale. However, during later years, when output was greater, there were
 economies of scale. This finding is likely the result of some combination
 of the entry of new firms, the development of new models or technological
 change. The study concludes that if firm output can be increased,
 economies of scale can be expected to strengthen the position of the
 Brazilian industry in the international marketplace.
Journal: Applied Economics 
Pages: 2170-2182 
Issue: 23 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1114582 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114582 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2170-2182




Template-Type: ReDIF-Article 1.0
Author-Name: Enzo Weber 
Author-X-Name-First: Enzo 
Author-X-Name-Last: Weber 
Author-Name: Gerd Zika 
Author-X-Name-First: Gerd 
Author-X-Name-Last: Zika 
Title: Labour market forecasting in Germany: is disaggregation useful? 
Abstract:
 This paper examines whether labour market forecasts can be improved by
 using disaggregated information. We construct vector-autoregressive models
 for employment by sector in order to produce out-of-sample forecasts of
 aggregate employment. Forecast accuracy is compared to univariate models
 by using Clark/West tests. In an application to German data, it is evident
 that disaggregation significantly improves the employment forecast.
 Moreover, using fluctuation-window tests we find that disaggregation
 yields superior results especially in phases with strong and sustained
 employment changes.
Journal: Applied Economics 
Pages: 2183-2198 
Issue: 23 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1117044 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117044 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2183-2198




Template-Type: ReDIF-Article 1.0
Author-Name: Hyeongwoo Kim 
Author-X-Name-First: Hyeongwoo 
Author-X-Name-Last: Kim 
Author-Name: Wen Shi 
Author-X-Name-First: Wen 
Author-X-Name-Last: Shi 
Author-Name: Kwang-Myoung Hwang 
Author-X-Name-First: Kwang-Myoung 
Author-X-Name-Last: Hwang 
Title: Estimating interest rate setting behaviour in Korea: a constrained ordered choices model approach 
Abstract:
 We study the Bank of Korea&#x2019;s interest rate setting behaviour using
 an array of constrained ordered choices models, where the Monetary Policy
 Committee revises the target policy interest rate only when the current
 market interest rate deviates from the optimal rate by more than certain
 threshold values. Our models explain changes in the monetary policy stance
 well for the monthly frequency Korean data since January 2000. We find
 important roles for the output gap and the foreign exchange rate in
 understanding the Bank of Korea&#x2019;s rate decision-making process. We
 also implement out-of-sample forecast exercises with September 2008
 (Lehman Brothers Bankruptcy) for a split point. We demonstrate that
 out-of-sample predictability improves greatly for the rate cut and the
 rate hike decisions using SE-adjusted inaction bands.
Journal: Applied Economics 
Pages: 2199-2214 
Issue: 23 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1117045 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117045 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2199-2214




Template-Type: ReDIF-Article 1.0
Author-Name: Hing Lin Chan 
Author-X-Name-First: Hing Lin 
Author-X-Name-Last: Chan 
Author-Name: Kai-Yin Woo 
Author-X-Name-First: Kai-Yin 
Author-X-Name-Last: Woo 
Title: An investigation into the dynamic relationship between international and China&#x2019;s crude oil prices 
Abstract:
 This article studies the dynamic relationship between international (WTI,
 Brent and Dubai) and domestic (Da Qing) crude oil prices in China using
 threshold cointegration method. We find evidence of a long-run equilibrium
 relationship between each pair of international and Da Qing oil prices,
 favouring the market integration hypothesis. We also estimate asymmetric
 adjustments under the momentum threshold autoregressive (M-TAR)
 specification in a TVECM, and the results show that adjustments to
 eliminate disequilibrium happen faster when oil price spread increases
 than when it decreases. The long-run and short-run Granger causality tests
 support the notion that China has influence on the international oil
 markets. The results imply that China should open up its domestic and
 imported oil markets, and also establish a well-functioning crude oil
 futures market, as they are essential for arbitrage and hedging
 strategies.
Journal: Applied Economics 
Pages: 2215-2224 
Issue: 24 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1117046 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117046 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2215-2224




Template-Type: ReDIF-Article 1.0
Author-Name: Zhihua Ding 
Author-X-Name-First: Zhihua 
Author-X-Name-Last: Ding 
Author-Name: Lingyun He 
Author-X-Name-First: Lingyun 
Author-X-Name-Last: He 
Author-Name: Caicai Feng 
Author-X-Name-First: Caicai 
Author-X-Name-Last: Feng 
Author-Name: Wenbo Li 
Author-X-Name-First: Wenbo 
Author-X-Name-Last: Li 
Title: The impact of coal price fluctuations on China&#x2019;s economic output 
Abstract:
 Due to the important role of coal in China&#x2019;s macroeconomic growth,
 the price of coal significantly influences its economic output. Employing
 a VAR model, a cointegration test and a state-space model of time-varying
 variables, this article analyses the influence of coal price fluctuations
 on the volume and structure of China&#x2019;s economic output, including
 both the strength and the time delay of such influence. This article
 further explores the corresponding relationships between coal price
 fluctuations and variations in the effects of these fluctuations to
 analyse the asymmetric influence of coal price fluctuations on
 China&#x2019;s macroeconomy. Coal price fluctuations exerted significant
 long-term positive effects and short-term negative effects on
 China&#x2019;s output variables, with an average delay of 11&#xa0;months;
 they had positive effects on investment and consumption over the long term
 and an increasingly negative effect on imports and exports. The average
 delays were 9&#xa0;months for investment, 6.5&#xa0;months for consumption
 and 10&#xa0;months for imports and exports. There was an asymmetric
 correlation between coal price fluctuations and the time-varying
 elasticity of their impact on GDP. The results in this study are
 consistent with the actual operating circumstances of the Chinese economy.
Journal: Applied Economics 
Pages: 2225-2237 
Issue: 24 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1117047 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117047 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2225-2237




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada C. &#xc1;lvarez 
Author-X-Name-First: Inmaculada C. 
Author-X-Name-Last: &#xc1;lvarez 
Author-Name: Javier Barbero 
Author-X-Name-First: Javier 
Author-X-Name-Last: Barbero 
Title: The public sector and convergence with spatial interdependence: empirical evidence from Spain 
Abstract:
 We propose a framework to analyse convergence between regions,
 incorporating the public sector and technological knowledge spillovers in
 the context of a Neoclassical Growth Model. Second, we apply novel
 estimation methods pertaining to the spatial econometrics literature
 introducing a spatial Durbin panel data model based on instrumental
 variables and maximum-likelihood estimation. Our model makes it possible
 to analyse, in terms of convergence, the results obtained in Spanish
 regions with the policies implemented during the period 1980--2011. The
 results support the idea that education and fiscal policies have a
 positive effect on regional development and cohesion. Therefore, we can
 conclude that it is possible to obtain better results for regional
 convergence with higher rates of public investment in education and tax
 revenues. We also obtain interesting results that confirm the existence of
 spillover effects in economic growth and public policies, identifying
 their magnitude and significance.
Journal: Applied Economics 
Pages: 2238-2252 
Issue: 24 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1117048 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117048 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2238-2252




Template-Type: ReDIF-Article 1.0
Author-Name: W. Attavanich 
Author-X-Name-First: W. 
Author-X-Name-Last: Attavanich 
Title: Did the Thai rice-pledging programme improve the economic performance and viability of rice farming? 
Abstract:
 This article evaluates impacts of the rice-pledging programme on the
 economic performance and viability of rice farming in Thailand. It also
 investigates whether the effects of the programme are heterogeneous across
 different farm types using the propensity score matching technique to
 address the self-selection bias in the farm-level data set. We found that
 the programme enhanced the economic performance less than hoped for.
 Overall, the programme was estimated to improve the net direct farm income
 for participating farms by $175.12--$194.82&#xa0;per&#xa0;hectare. Taking
 into account the heterogeneous effects of the programme across farm types,
 we calculated that the greatest effects may be realized by farmers within
 the small farms subsample, at $404.41--$439.85&#xa0;per&#xa0;hectare, but
 only $139.80--$213.36&#xa0;per&#xa0;hectare for midsize farms, and
 $138.82--$173.34&#xa0;per&#xa0;hectare for large farms. With regard to the
 economic viability of the programme, we discovered that it had an
 insignificant effect on farm modernization investment initiatives. Thus,
 future strategies incorporated into the programme that better control
 increases in production costs, improve small farmers&#x2019; access to the
 programme and require participating farms to spend a portion of the money
 received on farm modernization may improve long-run benefits of the
 programme.
Journal: Applied Economics 
Pages: 2253-2265 
Issue: 24 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1117049 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117049 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2253-2265




Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Bebczuk 
Author-X-Name-First: Ricardo 
Author-X-Name-Last: Bebczuk 
Author-Name: Eduardo Cavallo 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Cavallo 
Title: Is business saving really none of our business? 
Abstract:
 This paper revisits the role of business saving in the economy by
 critically scrutinizing the existing macroeoconomic and corporate finance
 literatures. We assemble and exploit a broad international, unbalanced
 panel of 47 countries over 1995--2013 on saving and investment by
 institutional sector to shed new light on the relevance of business saving
 for private saving and investment around the world. We show that
 businesses contribute on average more than 50% of national saving around
 the world. Using this unique dataset, we find evidence of partial piercing
 of the corporate veil: a $1 increase in business saving gives rise to a
 decrease of approximately $0.40 in household saving--thereby raising
 private saving by as much as $0.60. We also find that a $1 increase in
 business saving increases private investment by as much as $0.20 in
 countries where limited financing is a binding constraint on firms&#x2019;
 investment. The evidence suggests that business saving and external
 financing are <italic>complementary</italic> sources of financing for
 investment.
Journal: Applied Economics 
Pages: 2266-2284 
Issue: 24 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1117050 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117050 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2266-2284




Template-Type: ReDIF-Article 1.0
Author-Name: Chune Young Chung 
Author-X-Name-First: Chune Young 
Author-X-Name-Last: Chung 
Title: State-dependent risk and M&A 
Abstract:
 During economic contractions, the asset and capital structures of firms
 are more likely to deviate from their optimal levels. Target firms, in
 particular, are more susceptible to such deviations. I study how such
 deviations affect the bidding firms&#x2019; acquisition decision. I find
 that bidders abstain from taking over targets when the debts and growth
 options of the targets are over their optimal levels. Further, I show that
 bidders are more likely to pay a low premium for such targets. Both
 results are pronounced when the aggregate economy has had a bad shock;
 these results are associated with higher risks because of the excessive
 levels of debts and growth options. Overall, these results uncover the
 impact of the targets&#x2019; abnormal debts and growth options on the
 bidders&#x2019; acquisitions, contingent on the state of the economy.
Journal: Applied Economics 
Pages: 2285-2300 
Issue: 24 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1117051 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117051 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2285-2300




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Author-Name: Ahdi N. Ajmi 
Author-X-Name-First: Ahdi N. 
Author-X-Name-Last: Ajmi 
Author-Name: Ghassen El Montasser 
Author-X-Name-First: Ghassen 
Author-X-Name-Last: El Montasser 
Author-Name: Roula Inglesi-Lotz 
Author-X-Name-First: Roula 
Author-X-Name-Last: Inglesi-Lotz 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Research output and economic growth in G7 countries: new evidence from asymmetric panel causality testing 
Abstract:
 Recent studies have shown increasing interest on the relationship between
 research output and economic growth. The study of such a relationship is
 not only of theoretical interest, but it can also influence specific
 policies to improve the quality, and probably the quantity of research
 output. This article has studied this relationship in G7 countries using
 the asymmetric panel causality test of Hatemi-J (2011). Our results show
 that only the UK shows a causal relationship from the output of research
 to real GDP. However, when the signs of variations are taken into account,
 there is an asymmetric causality running from negative research output
 shocks to negative real GDP shocks.
Journal: Applied Economics 
Pages: 2301-2308 
Issue: 24 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1117052 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117052 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2301-2308




Template-Type: ReDIF-Article 1.0
Author-Name: Rabindra Nepal 
Author-X-Name-First: Rabindra 
Author-X-Name-Last: Nepal 
Author-Name: Antonio Carvalho 
Author-X-Name-First: Antonio 
Author-X-Name-Last: Carvalho 
Author-Name: John Foster 
Author-X-Name-First: John 
Author-X-Name-Last: Foster 
Title: Revisiting electricity liberalization and quality of service: empirical evidence from New Zealand 
Abstract:
 What effect does the firm structure have on the quality of service
 delivered by networks and infrastructure industries? We answer this
 question by empirically assessing the impacts of complete vertical
 separation, such as ownership unbundling, on the quality of service
 delivered by a liberalized network industry. Electricity distribution
 utilities in New Zealand are considered for this purpose and are analysed
 using panel-data econometrics. The results show robust evidence that
 ownership unbundling contributed to a fall in the duration and frequency
 of supply interruptions in electricity distribution. However, the results
 also show that unbundling has no effect on reducing distribution network
 losses. These results, overall, highlight the nonsimple impacts of
 ownership unbundling on the quality of electricity distribution. We
 suggest that the quality of service may largely improve when considered in
 the economic regulation of electricity networks than completely relying on
 specific reform measures such as ownership unbundling.
Journal: Applied Economics 
Pages: 2309-2320 
Issue: 25 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1119789 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2309-2320




Template-Type: ReDIF-Article 1.0
Author-Name: Peiwen Bai 
Author-X-Name-First: Peiwen 
Author-X-Name-Last: Bai 
Author-Name: Wenli Cheng 
Author-X-Name-First: Wenli 
Author-X-Name-Last: Cheng 
Title: Labour misallocation in China: 1980--2010 
Abstract:
 This article measures labour misallocation in Chinese provinces over the
 period 1980--2010 and investigates possible causal factors of the
 misallocation. It finds that: (1) labour misallocation fell substantially
 in the first half of 1980s, but there was no monotonic trend of
 improvement since then. (2) Wage differentials cross primary, secondary
 and tertiary sectors accounted for a substantial portion of measured
 overall labour misallocation; the secondary sector&#x2019;s wage
 deviations from value of the marginal product of labour (VMPL) also
 contributed to labour misallocation. (3) There was persistence in labour
 misallocation, but a higher level of urbanization, the development of the
 tertiary sector, increasing trade openness and the growth of the nonstate
 sector appear to have contributed to more efficient labour allocation.
Journal: Applied Economics 
Pages: 2321-2332 
Issue: 25 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1119790 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119790 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2321-2332




Template-Type: ReDIF-Article 1.0
Author-Name: V. Aevskiy 
Author-X-Name-First: V. 
Author-X-Name-Last: Aevskiy 
Author-Name: V. Chetverikov 
Author-X-Name-First: V. 
Author-X-Name-Last: Chetverikov 
Title: A discrete time model of convergence for the term structure of interest rates in the case of entering a monetary union 
Abstract:
 This paper presents a method for constructing the term structure of
 interest rate spreads for two currencies in the context of a
 country&#x2019;s entry into a monetary union. We propose a special type of
 process that ensures the convergence of the short-term interest rate
 spread to zero by a fixed moment in time, which we call the discrete-time
 Brownian bridge process. Using this process and the conventional pricing
 kernel framework, we derive double recursive formulas for computing the
 affine coefficients for the term structure of interest rate spread. The
 estimated model counterpart, which is based on the pre-EMU interest rate
 spread data for the interest rates of the German mark and Italian lira,
 fits the data reasonably well and captures the stylized empirical facts.
 Namely, spreads for all maturities have downward trends, and the longer
 the maturity is, the less spread there is.
Journal: Applied Economics 
Pages: 2333-2340 
Issue: 25 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1119791 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119791 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2333-2340




Template-Type: ReDIF-Article 1.0
Author-Name: M. D. Parra 
Author-X-Name-First: M. D. 
Author-X-Name-Last: Parra 
Author-Name: I. Martinez-Zarzoso 
Author-X-Name-First: I. 
Author-X-Name-Last: Martinez-Zarzoso 
Author-Name: C. Su&#xe1;rez-Burguet 
Author-X-Name-First: C. 
Author-X-Name-Last: Su&#xe1;rez-Burguet 
Title: The impact of FTAs on MENA trade in agricultural and industrial products 
Abstract:
 This article analyses the impact of Free Trade Agreements (FTAs) on Middle
 East and North African Countries (MENA) trade for the period 1994--2010.
 The analysis distinguishes between industrial and agricultural trade to
 take into account the different liberalization schedules. An augmented
 gravity model is estimated using up-to-date panel data techniques to
 control for all time-invariant bilateral factors that influence bilateral
 trade as well as for the so-called multilateral resistance factors. We
 also control for the endogeneity of the agreements and test for
 self-selection bias due to the presence of zero trade in our sample. The
 main findings indicate that North--South-FTAs and South--South-FTAs have a
 differential impact in terms of increasing trade in MENA countries, with
 the former being more beneficial in terms of exports for MENA countries,
 but both showing greater global market integration. We also find that FTAs
 that include agricultural products, in which MENA countries have a clear
 comparative advantage, have more favourable effects for these countries
 than those only including industrial products.
Journal: Applied Economics 
Pages: 2341-2353 
Issue: 25 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1119792 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119792 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2341-2353




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Arnade 
Author-X-Name-First: Carlos 
Author-X-Name-Last: Arnade 
Author-Name: Fred Kuchler 
Author-X-Name-First: Fred 
Author-X-Name-Last: Kuchler 
Author-Name: Linda Calvin 
Author-X-Name-First: Linda 
Author-X-Name-Last: Calvin 
Title: The changing role of consumers and suppliers in a food safety event: the 2006 foodborne illness outbreak linked to spinach 
Abstract:
 This article provides a means for testing whether buyers or sellers are
 responsible for a drop in sales following a market shock. We show that
 suppliers&#x2019; responses dominated the market reaction to the 2006 US
 Food and Drug Administration warning to avoid fresh spinach contaminated
 with potentially deadly bacteria <italic>Escherichia coli</italic>
 O157:H7. A modified Durbin-Wu-Hausman test for temporary price endogeneity
 is developed and used in a leafy green vegetable demand model. Test
 results indicate the price of bagged spinach was exogenous before the
 announcement but endogenous for approximately 12&#xa0;weeks afterward. We
 show these results are consistent with the notion that suppliers
 temporarily limited the availability of spinach to consumers. Instead of
 consumers choosing the quantity purchased given exogenous prices, it was
 suppliers who limited the quantity marketed and consumers&#x2019; choices
 established the market price.
Journal: Applied Economics 
Pages: 2354-2366 
Issue: 25 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1119793 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119793 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2354-2366




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Nielsen Rotta 
Author-X-Name-First: Pedro Nielsen 
Author-X-Name-Last: Rotta 
Author-Name: Pedro L. Valls Pereira 
Author-X-Name-First: Pedro L. 
Author-X-Name-Last: Valls Pereira 
Title: Analysis of contagion from the dynamic conditional correlation model with Markov Regime switching 
Abstract:
 Over the last decades, the transmissions of international financial events
 have been the subject of many academic studies focused on multivariate
 volatility models. This study evaluates the financial contagion between
 stock market returns. The econometric model employed, regime switching
 dynamic correlation (RSDC). A modification was made in the original RSDC
 model, the introduction of the GJR-GARCH-N and also
 GJR-GARCH-<italic>t</italic> models, on the equation of conditional
 univariate variances, thus allowing us to capture the asymmetric effects
 in volatility and also heavy tails. A database was built using series of
 indices in the United States (S&P500), the United Kingdom (FTSE100),
 Brazil (IBOVESPA) and South Korea (KOSPI) from 1 February 2003 to 20
 September 2012. Throughout this study the methodology is compared with
 those frequently found in literature, and the model RSDC with two regimes
 was defined as the most appropriate for the selected sample with
 <italic>t</italic>-Student distribution in the disturbances. The adapted
 RSDC model used in this article can be used to detect contagion --
 considering the definition of financial contagion from the World Bank
 called very restrictive -- with the help of the empirical exercise.
Journal: Applied Economics 
Pages: 2367-2382 
Issue: 25 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1119794 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119794 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2367-2382




Template-Type: ReDIF-Article 1.0
Author-Name: Hyein Shim 
Author-X-Name-First: Hyein 
Author-X-Name-Last: Shim 
Author-Name: Hyeyoen Kim 
Author-X-Name-First: Hyeyoen 
Author-X-Name-Last: Kim 
Author-Name: Sunghyun Kim 
Author-X-Name-First: Sunghyun 
Author-X-Name-Last: Kim 
Author-Name: Doojin Ryu 
Author-X-Name-First: Doojin 
Author-X-Name-Last: Ryu 
Title: Testing the relative purchasing power parity hypothesis: the case of Korea 
Abstract:
 This study examines the relative purchasing power parity (PPP) hypothesis
 using the data from the Korean won--US dollar and the Korean won--Japanese
 yen foreign exchange markets. We extract proxies for inflation from stock
 market returns of Korea, the United States and Japan based on the method
 used by Chowdhry, Roll and Xia in 2005. We explicitly test the relative
 PPP hypothesis in light of the short-run price volatility using monthly,
 bimonthly and quarterly data from 1 January 1998 to 31 December 2012. Our
 findings suggest that the empirical test results from the entire sample
 period do not support the relative PPP hypothesis. However, the results
 from the sample period excluding the Asian Financial Crisis period show
 that the relative PPP hypothesis holds for the Korean won--US dollar
 market with a moderate magnitude of inflation impact, but not for the
 Korean won--Japanese yen market. Abrupt changes in exchange rates during
 the crisis period may have affected the relationship between inflation and
 exchange rates. This result also suggests that factors other than
 inflation might have affected the Korean won--Japanese yen exchange rate.
Journal: Applied Economics 
Pages: 2383-2395 
Issue: 25 
Volume: 48 
Year: 2016 
Month: 5 
X-DOI: 10.1080/00036846.2015.1119795 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119795 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2383-2395




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Pino 
Author-X-Name-First: Gabriel 
Author-X-Name-Last: Pino 
Author-Name: Dilara Tas 
Author-X-Name-First: Dilara 
Author-X-Name-Last: Tas 
Author-Name: Subhash C. Sharma 
Author-X-Name-First: Subhash C. 
Author-X-Name-Last: Sharma 
Title: An investigation of the effects of exchange rate volatility on exports in East Asia 
Abstract:
 This study investigates the effects of the exchange rate volatility on the
 export flows of Indonesia, Malaysia, Republic of Korea, Singapore,
 Thailand, and the Philippines during 1974--2011. Towards this goal a trade
 weighted real effective (rather than the bilateral) exchange rate and
 three different measures of volatility, i.e. obtained from an ARCH model,
 a GARCH model and a moving-average standard deviation measure are used in
 this study. Specifically, the export flows between six Asian countries and
 the rest of the world are investigated rather than focusing on trade with
 only one country. Our findings reveal that the exchange rate volatility
 has a significant impact on export flows in the short run as well as in
 the long run for all the countries in the sample. The impact in the long
 run is predominantly negative with the exception of Singapore, but in the
 short run the impact varies across countries. Moreover, our results are
 robust to the alternative measures of volatility used and most of the
 findings in the long run and short run are also robust to the crisis
 period.
Journal: Applied Economics 
Pages: 2397-2411 
Issue: 26 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1122730 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122730 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2397-2411




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick T. Kanda 
Author-X-Name-First: Patrick T. 
Author-X-Name-Last: Kanda 
Author-Name: Mehmet Balcilar 
Author-X-Name-First: Mehmet 
Author-X-Name-Last: Balcilar 
Author-Name: Pejman Bahramian 
Author-X-Name-First: Pejman 
Author-X-Name-Last: Bahramian 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Title: Forecasting South African inflation using non-linearmodels: a weighted loss-based evaluation 
Abstract:
 The conduct of inflation targeting is heavily dependent on accurate
 inflation forecasts. Non-linear models have increasingly featured, along
 with linear counterparts, in the forecasting literature. In this study, we
 focus on forecasting South African inflation by means of non-linear models
 and using a long historical dataset of seasonally adjusted monthly
 inflation rates spanning from 1921:02 to 2013:01. For an emerging market
 economy such as South Africa, non-linearities can be a salient feature of
 such long data, hence the relevance of evaluating non-linear
 models&#x2019; forecast performance. In the same vein, given the fact that
 1969:10 marks the beginning of a protracted rising trend in South African
 inflation data, we estimate the models for an in-sample period of
 1921:02--1966:09 and evaluate 1, 4, 12, and 24 step-ahead forecasts over
 an out-of-sample period of 1966:10--2013:01. In addition, using a weighted
 loss function specification, we evaluate the forecast performance of
 different non-linear models across various extreme economic environments
 and forecast horizons. In general, we find that no competing model
 consistently and significantly beats the LoLiMoT&#x2019;s performance in
 forecasting South African inflation.
Journal: Applied Economics 
Pages: 2412-2427 
Issue: 26 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1122731 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122731 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2412-2427




Template-Type: ReDIF-Article 1.0
Author-Name: Lorna Katusiime 
Author-X-Name-First: Lorna 
Author-X-Name-Last: Katusiime 
Author-Name: Frank W. Agbola 
Author-X-Name-First: Frank W. 
Author-X-Name-Last: Agbola 
Author-Name: Abul Shamsuddin 
Author-X-Name-First: Abul 
Author-X-Name-Last: Shamsuddin 
Title: Exchange rate volatility--economic growth nexus in Uganda 
Abstract:
 The global financial crisis has disrupted trade and capital flows in most
 developing economies, resulting in an increased volatility of exchange
 rates. We develop an autoregressive distributed lag model to investigate
 the effect of exchange rate volatility on economic growth in Uganda. Using
 data spanning the period 1960--2011, we find that exchange rate volatility
 positively affects economic growth in Uganda in both the short run and the
 long run. However, in the short run, political instability negatively
 moderates the exchange rate volatility--economic growth nexus. These
 results are robust to alternative specifications of the economic growth
 model.
Journal: Applied Economics 
Pages: 2428-2442 
Issue: 26 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1122732 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2428-2442




Template-Type: ReDIF-Article 1.0
Author-Name: Sizhong Sun 
Author-X-Name-First: Sizhong 
Author-X-Name-Last: Sun 
Author-Name: Sajid Anwar 
Author-X-Name-First: Sajid 
Author-X-Name-Last: Anwar 
Title: Interrelationship among foreign presence, domestic sales and export intensity in Chinese manufacturing industries 
Abstract:
 Using panel data on six Chinese manufacturing industries over the period
 2005--2007, this article explores the interrelationship among foreign
 presence, domestic sales and export intensity of local firms. We find that
 the domestic sales and exports are complementary for local firms in
 China&#x2019;s pharmaceutical industry, whereas in the case of the
 textile, transportation equipment, beverage, communication equipment and
 general equipment manufacturing industries, domestic sales and exports are
 substitutes. An increase in the average domestic sales increases foreign
 presence in all industries. The same applies to an increase in the average
 export intensity. An increase in the level of competition in
 China&#x2019;s textile industry increases the export intensity as well as
 domestic sales of local textile firms. However, an increase in the level
 of competition in the pharmaceutical industry leads to a very large
 decrease in export intensity of local pharmaceutical firms. In the case of
 China&#x2019;s transportation equipment manufacturing industry, an
 increase in the level of competition decreases domestic sales of local
 firms. Furthermore, an increase in the firm size increases domestic sales
 of Chinese firms in all six manufacturing industries.
Journal: Applied Economics 
Pages: 2443-2453 
Issue: 26 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1122733 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2443-2453




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald A. Babula 
Author-X-Name-First: Ronald A. 
Author-X-Name-Last: Babula 
Author-Name: Dragan Miljkovic 
Author-X-Name-First: Dragan 
Author-X-Name-Last: Miljkovic 
Title: Assessing the role of futures position substitutability in a monthly slaughtered pork factor demand by US processors: a cointegrated VAR model approach 
Abstract:
 This article combines cointegrated VAR modelling with basic neoclassical
 production microeconomics in a new way that tests for, and illuminates the
 empirical nature of, the monthly US pork processing sector&#x2019;s factor
 demand for slaughtered pork. Statistical evidence strongly suggests that
 the US pork processing sector has a Hicksian Cobb--Douglas slaughtered
 pork demand that arises from applying Shephard&#x2019;s lemma to the
 sector&#x2019;s cost function and that US pork processors treat
 slaughtered pork and related futures positions as close factor
 substitutes. In the wake of major and ongoing futures market events and
 trends, this study establishes and statistically tests a theoretical link
 between futures price movements and impacts on the underlying slaughtered
 pork market through monthly formation of US pork processors&#x2019; factor
 demand for slaughtered pork. Evidence suggests that demand agents shift
 between demands for the two substitutes based on movements in the
 slaughter/futures price ratio that results in a market-stabilizing cushion
 against sharp pork price movements such as those observed in the
 late-1990s. Statistical and diagnostic evidence suggests that our modelled
 non-experimental data and estimated Hicksian demand that arose from the
 cointegrated VAR model&#x2019;s cointegration space met Haavelmo&#x2019;s
 setting of passive variables and associated <italic>ceteris
 paribus</italic> conditions.
Journal: Applied Economics 
Pages: 2454-2468 
Issue: 26 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1122734 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122734 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2454-2468




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Jare&#xf1;o 
Author-X-Name-First: Francisco 
Author-X-Name-Last: Jare&#xf1;o 
Author-Name: Rom&#xe1;n Ferrer 
Author-X-Name-First: Rom&#xe1;n 
Author-X-Name-Last: Ferrer 
Author-Name: Stanislava Miroslavova 
Author-X-Name-First: Stanislava 
Author-X-Name-Last: Miroslavova 
Title: US stock market sensitivity to interest and inflation rates: a quantile regression approach 
Abstract:
 This article studies the sensitivity of the US stock market to nominal and
 real interest rates and inflation during the 2003--2013 period using
 quantile regression (QR). The empirical results show that the stock market
 has a significant sensitivity to changes in interest rates and inflation
 and finds differences across sectors and over time. Moreover, the effect
 of changes in both interest rates and inflation tends to be more
 pronounced during extreme market conditions, thus distinguishing expansion
 periods from recession periods.
Journal: Applied Economics 
Pages: 2469-2481 
Issue: 26 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1122735 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122735 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2469-2481




Template-Type: ReDIF-Article 1.0
Author-Name: Scott Beaulier 
Author-X-Name-First: Scott 
Author-X-Name-Last: Beaulier 
Author-Name: Robert Elder 
Author-X-Name-First: Robert 
Author-X-Name-Last: Elder 
Author-Name: Cheryl Han 
Author-X-Name-First: Cheryl 
Author-X-Name-Last: Han 
Author-Name: Joshua C. Hall 
Author-X-Name-First: Joshua C. 
Author-X-Name-Last: Hall 
Title: An ordinal ranking of economic institutions 
Abstract:
 We provide the first ranking of countries&#x2019; economic institutions
 using an ordinal methodology. Using the five areas of the Fraser
 Institute&#x2019;s <italic>Economic Freedom of the World</italic> (EFW)
 index, we find that final rankings of a country&#x2019;s institutions are
 sensitive to the importance-ordering of Area 1 (Size of Government). When
 Areas 2--5 are in the most important position, we find that there is no
 significant difference between the EFW rankings and our rankings. When
 Area 1 is placed in the most important position, however, a number of
 European countries with large welfare states but good governance do
 poorly.
Journal: Applied Economics 
Pages: 2482-2490 
Issue: 26 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1122736 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122736 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2482-2490




Template-Type: ReDIF-Article 1.0
Author-Name: P. M. Korale Gedara 
Author-X-Name-First: P. M. 
Author-X-Name-Last: Korale Gedara 
Author-Name: S. Ratnasiri 
Author-X-Name-First: S. 
Author-X-Name-Last: Ratnasiri 
Author-Name: J. S. Bandara 
Author-X-Name-First: J. S. 
Author-X-Name-Last: Bandara 
Title: Does asymmetry in price transmission exist in the rice market in Sri Lanka? 
Abstract:
 This study analyses asymmetry in price transmission between wholesale and
 retail rice markets in Sri Lanka, using the threshold autoregressive
 model. We found that the wholesale and the retail rice markets in Sri
 Lanka are integrated, with price changes moving from the wholesale to the
 retail market. However, the price transmission process is asymmetric. In
 particular, price increases at the wholesale market transmit immediately
 to the retail market while price decreases transmit more slowly. Parameter
 stability test and follow-up analysis indicated that the price
 transmission process is asymmetric only during periods of price surges,
 suggesting that the rice market is not efficient during these periods.
Journal: Applied Economics 
Pages: 2491-2505 
Issue: 27 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125427 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125427 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2491-2505




Template-Type: ReDIF-Article 1.0
Author-Name: Tomomi Miyazaki 
Author-X-Name-First: Tomomi 
Author-X-Name-Last: Miyazaki 
Title: Fiscal stimulus effectiveness in Japan: evidence from recent policies 
Abstract:
 This article examines the effects of Japanese fiscal policy after the 2008
 global financial crisis using a mixed vector autoregression/event study
 approach. We focus on the effects of stimulus packages with environmental
 benefits. The empirical results show that a tax break and subsidy
 programme designed to promote the adoption of eco-friendly cars helped
 stimulate automobile production, while a similar programme intended to
 promote the purchase of energy-efficient appliances had no effect on
 appliance production.
Journal: Applied Economics 
Pages: 2506-2515 
Issue: 27 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125428 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125428 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2506-2515




Template-Type: ReDIF-Article 1.0
Author-Name: Jos&#xe9; F. Ba&#xf1;os 
Author-X-Name-First: Jos&#xe9; F. 
Author-X-Name-Last: Ba&#xf1;os 
Author-Name: Ana Rodr&#xed;guez-&#xc1;lvarez 
Author-X-Name-First: Ana 
Author-X-Name-Last: Rodr&#xed;guez-&#xc1;lvarez 
Title: Estimating technology in the postal sector: a Bayesian approach 
Abstract:
 The aim of this article is to study the technology of the sector
 represented by the Spanish national post-office and telegraph service,
 Sociedad Estatal Correos y Tel&#xe9;grafos, S.A. trading as
 <italic>Correos</italic>, and denominated as such hereafter. Concretely,
 we analyse economic efficiency (technical and allocative) and scale
 economies of the production units (cost centres) of
 <italic>Correos</italic>. To do this, we employ a methodology based on an
 input distance function which is the dual of the cost function. Moreover,
 and applying duality theory, we develop an economic model to assess the
 effect of postal infrastructures on the operators&#x2019; costs. In order
 to carry out the empirical model, Bayesian econometrics is applied to
 estimate the parameters in the input distance function and the technical
 and allocative efficiency terms.
Journal: Applied Economics 
Pages: 2516-2529 
Issue: 27 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125429 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125429 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2516-2529




Template-Type: ReDIF-Article 1.0
Author-Name: Liang Guo 
Author-X-Name-First: Liang 
Author-X-Name-Last: Guo 
Author-Name: Ya Dai 
Author-X-Name-First: Ya 
Author-X-Name-Last: Dai 
Author-Name: Donald Lien 
Author-X-Name-First: Donald 
Author-X-Name-Last: Lien 
Title: The effects of China&#x2019;s split-share reform on firms&#x2019; capital structure choice 
Abstract:
 China&#x2019;s split-share structure reform in 2005--2006 mitigates agency
 conflicts between controlling shareholders and minority shareholders and
 thus may bring substantial changes to corporate financing behaviour. This
 article examines the impact of that reform on the capital structure
 decisions of firms by applying a variety of trade-off and pecking-order
 models. Using data from 1176 non-financial Chinese listed firms during the
 period 2000--2012, we present empirical evidence indicating that equity
 tracks the financing deficit better than debt in Chinese firms, a finding
 which is not consistent with pecking-order theory. This phenomenon is more
 prominent after 2006 as share reform increases trading activity in the
 secondary stock market and improves the transparency of financial markets.
 In addition, Chinese firms have an optimal leverage ratio and they adjust
 below-target leverage ratios faster than above-target leverage ratios
 after the implementation of share structure reform, although they make
 symmetric adjustments towards the target leverage ratio before 2007.
 Finally, recent share reform has prompted Chinese firms to more quickly
 address the divergence of actual leverage ratios from long-term target
 levels, but has slowed their response to short-term target leverage
 divergence.
Journal: Applied Economics 
Pages: 2530-2549 
Issue: 27 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125430 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125430 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2530-2549




Template-Type: ReDIF-Article 1.0
Author-Name: Dong Hee Suh 
Author-X-Name-First: Dong Hee 
Author-X-Name-Last: Suh 
Author-Name: Hayk Khachatryan 
Author-X-Name-First: Hayk 
Author-X-Name-Last: Khachatryan 
Author-Name: Zhengfei Guan 
Author-X-Name-First: Zhengfei 
Author-X-Name-Last: Guan 
Title: Why do we adopt environmentally friendly lawn care? Evidence from do-it-yourself consumers 
Abstract:
 This study identifies the factors determining the purchase frequencies of
 organic/natural fertilizers (ONFs) with a focus on do-it-yourself (DIY)
 consumers&#x2019; perceptions and motives. The estimation results of the
 generalized ordered logit model provide statistical evidence that
 environmental perceptions are critical factors in directing DIY consumers
 to purchase ONFs frequently. The results imply that educational
 programmes, informational campaigns, or advertisements to improve their
 perceptions on the potential negative impacts of fertilization on the
 environment may increase the purchase frequencies of ONFs. In addition,
 the results show that DIY consumers perceive that it is worth using ONFs
 despite their higher prices than chemical fertilizers. Their purchase
 frequencies will increase if they positively perceive the values of ONFs
 and are willing to pay a premium for ONFs. Moreover, the purchasing
 behaviour of DIY consumers is associated with their perceptions of
 neighbourhood landscaping. If neighbours or homeowner associations
 encourage landscaping improvements in their community, DIY consumers may
 increase their purchase frequencies of ONFs accordingly.
Journal: Applied Economics 
Pages: 2550-2561 
Issue: 27 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125431 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125431 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2550-2561




Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova 
Author-X-Name-First: Petra 
Author-X-Name-Last: Maresova 
Author-Name: Blanka Klimova 
Author-X-Name-First: Blanka 
Author-X-Name-Last: Klimova 
Author-Name: Kamil Kuca 
Author-X-Name-First: Kamil 
Author-X-Name-Last: Kuca 
Title: Financial and legislative aspects of drug development of orphan diseases on the European market -- a systematic review 
Abstract:
 According to the European Commission, medical products for orphan diseases
 are those which affect fewer than five persons out of every 10 000.
 Producers are reluctant to develop these drugs under the common market
 conditions because the demand for these drugs does not guarantee return on
 investments into research and development of such products. Patients with
 orphan diseases, however, have the same rights for treatment as any other
 patient. To stimulate the research and development of drugs for orphan
 diseases, the governmental offices introduce various incentives for health
 and biotechnological industry. This started in the USA already in 1983 by
 passing a special law. Japan introduced this law in 1993 and Australia in
 1997. Europe followed in 1999 by introducing common policy for all member
 states.The aim of this article is to specify current economic and
 legislative conditions in European countries and compare them with the
 legislation and approaches of the countries which started this initiative,
 i.e. USA, Japan, Australia or Singapore. In addition, the treatment costs
 of orphan diseases are specified and prospects of this field are
 evaluated.
Journal: Applied Economics 
Pages: 2562-2570 
Issue: 27 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125433 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125433 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2562-2570




Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Chatziantoniou 
Author-X-Name-First: Ioannis 
Author-X-Name-Last: Chatziantoniou 
Author-Name: Stavros Degiannakis 
Author-X-Name-First: Stavros 
Author-X-Name-Last: Degiannakis 
Author-Name: Bruno Eeckels 
Author-X-Name-First: Bruno 
Author-X-Name-Last: Eeckels 
Author-Name: George Filis 
Author-X-Name-First: George 
Author-X-Name-Last: Filis 
Title: Forecasting tourist arrivals using origin country macroeconomics 
Abstract:
 This study utilizes both disaggregated data and macroeconomic indicators
 in order to examine the importance of the macroeconomic environment of
 origin countries for analysing destinations&#x2019; tourist arrivals. In
 particular, it is the first study to present strong empirical evidence
 that both of these features in tandem provide statistically significant
 information of tourist arrivals in Greece. The forecasting exercises
 presented in our analysis show that macroeconomic indicators conducive to
 better forecasts are mainly origin country-specific, thus highlighting the
 importance of considering the apparent sharp national contrasts among
 origin countries when investigating domestic tourist arrivals. Given the
 extent of the dependency of the Greek economy on tourism income and also
 the perishable nature of the tourist product itself, results have
 important implications for policymakers in Greece.
Journal: Applied Economics 
Pages: 2571-2585 
Issue: 27 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125434 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125434 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2571-2585




Template-Type: ReDIF-Article 1.0
Author-Name: Haitao Yin 
Author-X-Name-First: Haitao 
Author-X-Name-Last: Yin 
Author-Name: Hui Zhou 
Author-X-Name-First: Hui 
Author-X-Name-Last: Zhou 
Author-Name: Kai Zhu 
Author-X-Name-First: Kai 
Author-X-Name-Last: Zhu 
Title: Long- and short-run elasticities of residential electricity consumption in China: a partial adjustment model with panel data 
Abstract:
 While it has stabilized in developed world, the per capita residential
 electricity consumption (REC) in developing countries such as China is
 growing very rapidly and this trend is very likely to continue. Built upon
 a provincial level panel data, we employ a partial adjustment model to
 investigate the future trend of REC in China and factors that affect it.
 We estimate the income and price short-term and long-term elasticities for
 urban and rural China, respectively and compare the results with REC
 studies in other countries or regions. The findings provide useful
 information to understand how the REC would grow in China as household
 income increases and how effective that price could be as an intervention
 tool.
Journal: Applied Economics 
Pages: 2587-2599 
Issue: 28 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125436 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125436 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2587-2599




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Sensoy 
Author-X-Name-First: Ahmet 
Author-X-Name-Last: Sensoy 
Title: Impact of sovereign rating changes on stock market co-movements: the case of Latin America 
Abstract:
 We aim to determine if long-term foreign currency sovereign rating
 assessments (from S&P, Moody&#x2019;s and Fitch) for the advanced emerging
 Latin American countries (Brazil, Mexico and Chile) have any significant
 effect on the correlation between their stock market returns in the last
 decade. With that purpose in mind, we obtain the time-varying correlation
 by cDCC modeling using ARX-APARCH filtered returns. The analysis shows
 that the rating changes do not have a significant effect on the
 correlations in general. After testing for robustness, we reveal that an
 upgrade to an investment grade level for a country is more likely to
 positively diversify it from others in the region instead of creating a
 common positive regional investment environment. Results have important
 implications for investors and policymakers.
Journal: Applied Economics 
Pages: 2600-2610 
Issue: 28 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125437 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125437 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2600-2610




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Jacob 
Author-X-Name-First: Martin 
Author-X-Name-Last: Jacob 
Title: Cross-base tax elasticity of capital gains 
Abstract:
 This paper studies the cross-base tax elasticity of capital gains
 realizations to labour income taxes when capital gains are taxed at a
 separate proportional tax rate. Using a longitudinal panel of over 265 000
 individuals in Sweden, this paper shows in a regression kink design that
 labour income taxes affect capital gains realizations in two ways. An
 increase in the marginal labour income tax rate increases the likelihood
 of realizing capital gains and the amount of realized capital gains. One
 implication of this result is that labour income taxes have a lock-out
 effect but that the magnitude of this effect is smaller than the lock-in
 effect of the actual capital gains tax.
Journal: Applied Economics 
Pages: 2611-2624 
Issue: 28 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125438 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125438 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2611-2624




Template-Type: ReDIF-Article 1.0
Author-Name: Tarron Khemraj 
Author-X-Name-First: Tarron 
Author-X-Name-Last: Khemraj 
Author-Name: Sherry Yu 
Author-X-Name-First: Sherry 
Author-X-Name-Last: Yu 
Title: The effectiveness of quantitative easing: new evidence on private investment 
Abstract:
 This paper examines the effect of Federal Reserve&#x2019;s large-scale
 purchases of securities on private investment. We find tentative evidence
 that quantitative easing (QE) stimulated the level of aggregate investment
 through the interest rate channel by narrowing corporate bond spread. In
 particular, the Fed&#x2019;s purchases of mortgage-backed securities were
 found to have a statistically significant effect on aggregate private
 investment. Moreover, using a GARCH model, we find that QE has led to a
 reduction in the volatility of private investment. This finding remains
 robust with a QE dummy variable as an alternative measure of the
 unconventional monetary policy. The study also indicates how different
 aspects of QE influence private investment and its volatility.
Journal: Applied Economics 
Pages: 2625-2635 
Issue: 28 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1125439 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125439 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2625-2635




Template-Type: ReDIF-Article 1.0
Author-Name: Nadeem A. Burney 
Author-X-Name-First: Nadeem A. 
Author-X-Name-Last: Burney 
Author-Name: Mohammad Alenezi 
Author-X-Name-First: Mohammad 
Author-X-Name-Last: Alenezi 
Author-Name: Nadia Al-Musallam 
Author-X-Name-First: Nadia 
Author-X-Name-Last: Al-Musallam 
Author-Name: Ahmed Al-Khayat 
Author-X-Name-First: Ahmed 
Author-X-Name-Last: Al-Khayat 
Title: The demand for medical care services: evidence from Kuwait based on households&#x2019; out-of-pocket expenses 
Abstract:
 This article used a data set containing information on 1267 households
 from Kuwait to investigate the determinants of demand for medical care
 services by examining households&#x2019; out-of-pocket expenses. To deal
 with the problems associated with households&#x2019; health expenditure
 data, a two-part model (TPM) was estimated. Given Kuwait&#x2019;s
 demographic composition, the model was estimated for full sample,
 nationals only and expatriates only. Prior to estimating the model, tests
 were conducted to select a transformation that reduces problems associated
 with heteroscedasticity and non-normality of the errors. In addition,
 tests were performed to determine if differences in the estimated
 coefficients across population groups were statistically significant.
Journal: Applied Economics 
Pages: 2636-2650 
Issue: 28 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128073 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128073 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2636-2650




Template-Type: ReDIF-Article 1.0
Author-Name: Ant&#xf3;nio Afonso 
Author-X-Name-First: Ant&#xf3;nio 
Author-X-Name-Last: Afonso 
Author-Name: Jo&#xe3;o Tovar Jalles 
Author-X-Name-First: Jo&#xe3;o Tovar 
Author-X-Name-Last: Jalles 
Title: The elusive character of fiscal sustainability 
Abstract:
 We assess the sustainability of public finances in OECD countries using
 unit root and cointegration analysis, controlling for endogenous breaks.
 Results deem fiscal sustainability as rather elusive since we find lack of
 cointegration -- absence of sustainability -- between government revenues
 and expenditures (except for Austria, Canada, France, Germany, Japan,
 Netherlands, Sweden and UK); improvements of the primary balance after
 worsening debt ratios only for Australia, Belgium, Germany, Ireland,
 Netherlands and the UK; and Granger causality from government debt to
 primary balances for 12 countries (suggesting Ricardian regimes).
Journal: Applied Economics 
Pages: 2651-2664 
Issue: 28 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128074 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128074 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2651-2664




Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Maria Caporale 
Author-X-Name-First: Guglielmo Maria 
Author-X-Name-Last: Caporale 
Author-Name: Stefano Di Colli 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Di Colli 
Author-Name: Roberto Di Salvo 
Author-X-Name-First: Roberto 
Author-X-Name-Last: Di Salvo 
Author-Name: Juan Sergio Lopez 
Author-X-Name-First: Juan Sergio 
Author-X-Name-Last: Lopez 
Title: Local banking and local economic growth in Italy: some panel evidence 
Abstract:
 This article provides new evidence on the contribution of local banking to
 local economic growth (i.e. at county level -- the Italian
 &#x2018;province&#x2019;) in Italy. A comprehensive data set is used,
 which includes control variables for social capital and human capital as
 well as indicators of the quality of local infrastructures and the
 production structure of the local economy. A linear within-estimator
 technique with fixed effects is applied to a modified version of the
 so-called Barro regression in order to address the well-known econometric
 issues of reverse causality and estimation bias resulting from unobserved
 district-specific influences.
Journal: Applied Economics 
Pages: 2665-2674 
Issue: 28 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128075 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128075 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2665-2674




Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Ayala 
Author-X-Name-First: Astrid 
Author-X-Name-Last: Ayala 
Author-Name: Szabolcs Blazsek 
Author-X-Name-First: Szabolcs 
Author-X-Name-Last: Blazsek 
Author-Name: Juncal Cu&#xf1;ado 
Author-X-Name-First: Juncal 
Author-X-Name-Last: Cu&#xf1;ado 
Author-Name: Luis Alb&#xe9;riko Gil-Alana 
Author-X-Name-First: Luis Alb&#xe9;riko 
Author-X-Name-Last: Gil-Alana 
Title: Regime-switching purchasing power parity in Latin America: Monte Carlo unit root tests with dynamic conditional score 
Abstract:
 We suggest a Monte Carlo simulation-based unit root test of the purchasing
 power parity theory for Latin American countries. Under the null
 hypothesis, we use a Markov regime-switching (MS) model with unit root in
 the conditional location and MS volatility dynamics. Under the alternative
 hypothesis, the proposed test incorporates Markov regime-switching
 autoregressive moving average (MS-ARMA) plus MS volatility dynamics. Under
 both the null and alternative hypotheses, one of the volatility models
 estimated is Beta-<italic>t</italic>-EGARCH, which is a recent dynamic
 conditional score volatility model. We use data on real effective exchange
 rate time series for 14 Latin American countries. For each country, we
 estimate by Monte Carlo simulation the critical values of the unit root
 test. We provide an economic discussion of the unit root test results and
 also study the robustness of MS-ARMA plus MS volatility with respect to
 smooth transition autoregressive models with Fourier function.
Journal: Applied Economics 
Pages: 2675-2696 
Issue: 29 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128076 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128076 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2675-2696




Template-Type: ReDIF-Article 1.0
Author-Name: Lili Li 
Author-X-Name-First: Lili 
Author-X-Name-Last: Li 
Author-Name: Jun Yang 
Author-X-Name-First: Jun 
Author-X-Name-Last: Yang 
Author-Name: Xin Zou 
Author-X-Name-First: Xin 
Author-X-Name-Last: Zou 
Title: A study of credit risk of Chinese listed companies: ZPP versus KMV 
Abstract:
 The Zero-Price Probability (ZPP) model is applied to evaluate the credit
 risk of listed companies in China and its performance is compared to that
 of the Kealhofer-McQuown-Vasicek (KMV) model. The sample includes 34
 financially distressed companies and a comparison group of 34 financially
 healthy companies. The performances of ZPP and KMV models are compared
 using various descriptive statistics and statistical tests. The empirical
 analyses show that the ZPP model is superior to the KMV model in terms of
 discriminatory power. Compared to the KMV model, the ZPP model performs
 much better in distinguishing between financially challenged and healthy
 firms. Among different specifications of the ZPP model, the na&#xef;ve
 constant variance zero-price probability model outperforms those with
 generalized autoregressive conditional heteroskedasticity specifications.
 This article is among the very first studies that provide evidence on the
 performance of the ZPP model.
Journal: Applied Economics 
Pages: 2697-2710 
Issue: 29 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128077 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128077 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2697-2710




Template-Type: ReDIF-Article 1.0
Author-Name: C. P. Barros 
Author-X-Name-First: C. P. 
Author-X-Name-Last: Barros 
Author-Name: O. H. dos S. Figueiredo 
Author-X-Name-First: O. H. dos S. 
Author-X-Name-Last: Figueiredo 
Author-Name: Silvestre Dumbo 
Author-X-Name-First: Silvestre 
Author-X-Name-Last: Dumbo 
Title: A performance assessment of the Angolan soccer league 
Abstract:
 This article analyses the technical efficiency of the Angolan soccer
 league from 2008 to 2014, using a translog distance stochastic frontier
 model. The Greene stochastic frontier model, presented in 2005, and
 Kumbhakar stochastic frontier model, presented in 1990, are adopted, and
 the covariates used include Luanda location, funding by the oil company
 Sonangol, club supported by rich fans and club relegated during the
 period. Policy implications are then derived.
Journal: Applied Economics 
Pages: 2711-2720 
Issue: 29 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128078 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128078 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2711-2720




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Ceballos 
Author-X-Name-First: Luis 
Author-X-Name-Last: Ceballos 
Author-Name: Alberto Naudon 
Author-X-Name-First: Alberto 
Author-X-Name-Last: Naudon 
Author-Name: Dami&#xe1;n Romero 
Author-X-Name-First: Dami&#xe1;n 
Author-X-Name-Last: Romero 
Title: Nominal term structure and term premia: evidence from Chile 
Abstract:
 The downwards trend exhibited in Chile&#x2019;s nominal term structure
 since 2003 has been a common pattern shared by other developed and
 developing economies. To understand the behaviour of the nominal yield
 curve in Chile, we rely on an affine dynamic term structure model which
 allows the term structure to decompose into the expected short-term
 interest rate (related to the monetary policy expectation) and the term
 premium. We show that most of the fall of long-term interest rates as well
 as its dynamics are related to the term premium rather than the expected
 short-term interest rate. Moreover, we find evidence that term premium is
 driven primarily by the US term premium and domestic nominal uncertainty
 derived from expected inflation.
Journal: Applied Economics 
Pages: 2721-2735 
Issue: 29 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128079 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128079 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2721-2735




Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Bachmann 
Author-X-Name-First: Carmen 
Author-X-Name-Last: Bachmann 
Author-Name: Martin Baumann 
Author-X-Name-First: Martin 
Author-X-Name-Last: Baumann 
Title: The repatriation incentive of the foreign dividend exemption system 
Abstract:
 Due to the high taxation of domestic corporate income, Japanese
 multinational enterprises have avoided to repatriate foreign profits to
 Japan for quite some time. As a consequence, the Japanese government
 introduced a new taxation system in 2009 -- the so called dividend
 exemption system -- which was aimed at reducing the effective tax burden
 of foreign dividends of Japanese multinational companies in order to
 increase tax revenue and stimulate economic growth. Applying a theoretical
 framework which allows comparing the repatriation incentive of the old and
 new Japanese tax systems, we find that in the long-run the tax regime
 change fails to incentivize foreign subsidiaries to repatriate foreign
 profits. Especially subsidiaries with high leverage located in countries
 with low corporate taxes and low dividend taxes might reinvest rather than
 distribute their earnings in the dividend exemption method.
Journal: Applied Economics 
Pages: 2736-2755 
Issue: 29 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128080 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128080 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2736-2755




Template-Type: ReDIF-Article 1.0
Author-Name: Nirosha Hewa Wellalage 
Author-X-Name-First: Nirosha Hewa 
Author-X-Name-Last: Wellalage 
Author-Name: Stuart Locke 
Author-X-Name-First: Stuart 
Author-X-Name-Last: Locke 
Title: Informality and credit constraints: evidence from Sub-Saharan African MSEs 
Abstract:
 The attributes of micro and small enterprises (MSEs) influencing access to
 credit, in particular the level and role of firm informality, are analysed
 in the article. The puzzle is the push for MSEs to join the formal sector
 and the tug to avoid the extra burden it places on the firm. It is
 important to know more clearly what forces are at work and the sources of
 the causal effects. This study uses data from the World Bank Enterprise
 Surveys for five low-income countries (LICs) in Sub-Saharan Africa. The
 method is empirical and as we find informality to be endogenous to credit
 constraints, an instrumental variable approach is estimated. Further, to
 address the possibility of reverse causality, an instrument for the
 informality variable is required; not registered with Inland Revenue (tax
 office) is the chosen instrument variable. The findings reveal that as the
 probability of a firm operating in the formal sector increases, there is
 greater access to external credit. The causality relationships are tested
 providing a strong platform for the formalization of polices to reduce the
 informality of the MSE sector. These are discussed in the context of the
 research findings.
Journal: Applied Economics 
Pages: 2756-2770 
Issue: 29 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128081 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128081 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2756-2770




Template-Type: ReDIF-Article 1.0
Author-Name: Mevlude Akbulut-Yuksel 
Author-X-Name-First: Mevlude 
Author-X-Name-Last: Akbulut-Yuksel 
Author-Name: Melanie Khamis 
Author-X-Name-First: Melanie 
Author-X-Name-Last: Khamis 
Author-Name: Mutlu Yuksel 
Author-X-Name-First: Mutlu 
Author-X-Name-Last: Yuksel 
Title: For better or for worse: the long-term effects of postwar mobilization on family formation 
Abstract:
 This article estimates the long-term legacies of female labour force
 mobilization on women&#x2019;s family formation outcomes such as marriage,
 age at first marriage and divorce. We identify the long-term marriage
 effects of female labour force mobilization by exploring postwar mandatory
 employment in Germany. Using difference-in-differences analysis, we find
 that participation in postwar reconstruction efforts increased
 women&#x2019;s probability of being currently married, ever married and
 marrying at younger ages. We also find that postwar employment had no
 differential effect on divorce rates of the affected cohorts of women.
 These results persist after accounting for the potential changes in the
 composition of the population, demand for female labour, war relief
 payments and postwar state-specific policies.
Journal: Applied Economics 
Pages: 2771-2784 
Issue: 29 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128082 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128082 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2771-2784




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Author-Name: Zorro Mendes 
Author-X-Name-First: Zorro 
Author-X-Name-Last: Mendes 
Title: Assessing the competition in Angola&#x2019;s banking industry 
Abstract:
 This article analyses the level of competition in Angola&#x2019;s banking
 industry using the Panzar--Rosse model with data from 2005 to 2014.
 Competition is a vital aspect of the banking market and therefore it is
 central to policy-making. The results reveal that Angola banking
 competition is monopolist and therefore lower competition is found in
 Angola banks. Policy implication is derived.
Journal: Applied Economics 
Pages: 2785-2791 
Issue: 30 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1128083 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128083 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2785-2791




Template-Type: ReDIF-Article 1.0
Author-Name: Akhand Akhtar Hossain 
Author-X-Name-First: Akhand Akhtar 
Author-X-Name-Last: Hossain 
Author-Name: Popkarn Arwatchanakarn 
Author-X-Name-First: Popkarn 
Author-X-Name-Last: Arwatchanakarn 
Title: Inflation and inflation volatility in Thailand 
Abstract:
 Quarterly data for Thailand are used in this article for the period
 1965q3--2013q4 to investigate both the relationship between inflation and
 inflation volatility, and the impact of inflation volatility on economic
 growth. Inflation volatility is estimated by deploying the generalized
 autoregressive conditional heteroscedastic (GARCH) technique. A Granger
 causality test is then conducted to examine the causality between
 inflation and inflation volatility. The empirical results obtained are
 consistent with a number of theoretical propositions. First, the results
 are consistent with the Friedman--Ball proposition, which states that a
 rise in inflation raises inflation volatility. Second, there is evidence
 supporting the Holland proposition that inflation volatility lowers the
 rate of inflation. This is consistent with the view that central banks
 attempt to stabilize inflation with the rise in inflation volatility.
 Third, empirical results obtained by asymmetric GARCH models suggest that
 inflation shocks have an asymmetric impact on inflation volatility (i.e. a
 positive inflation shock has a larger impact on inflation volatility -- as
 measured by the logarithm of the conditional variance of inflation -- than
 a negative inflation shock). Fourth, inflation volatility has an adverse
 impact on economic growth. Finally, given the fixed/pegged or managed
 float exchange rate system, US inflation has been found to have a positive
 impact on inflation and its volatility in Thailand. This article discusses
 the implications of empirical findings on the design and enactment of
 monetary policy for price stability in Thailand.
Journal: Applied Economics 
Pages: 2792-2806 
Issue: 30 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1130215 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130215 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2792-2806




Template-Type: ReDIF-Article 1.0
Author-Name: R. Collet 
Author-X-Name-First: R. 
Author-X-Name-Last: Collet 
Author-Name: D. Legros 
Author-X-Name-First: D. 
Author-X-Name-Last: Legros 
Title: Dynamics of female labour force participation in France 
Abstract:
 This article formulates and estimates a structural intertemporal model of
 labour force participation. Relying on theoretical characterizations
 derived from an economic model of lifetime behaviour, we estimate a
 dynamic probit model with correlated random effects using longitudinal
 data to allow for a dynamic structure. The model is applied to a panel of
 married women drawn from the 1997--2002 French Labour Force surveys in
 order to represent their participation behaviour. It is estimated by
 maximum simulated likelihood. Our results show that women&#x2019;s
 decisions to go out to work are characterized by significant state
 dependence, unobserved heterogeneity and negative serial correlation in
 the transitory error component. In addition, we find that the presence of
 young children in a woman&#x2019;s household reduces her labour
 participation, but unequally according to their age and number. As
 expected, educational level has a positive impact on women&#x2019;s
 participation. Last, a rise in the husband&#x2019;s wage is found to raise
 female participation initially and to lower it subsequently. This
 empirical finding suggests that leisure may not systematically be a normal
 good, contrary to what is frequently assumed in the literature.
Journal: Applied Economics 
Pages: 2807-2821 
Issue: 30 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1130787 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130787 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2807-2821




Template-Type: ReDIF-Article 1.0
Author-Name: Thanh Pham Thien Nguyen 
Author-X-Name-First: Thanh Pham Thien 
Author-X-Name-Last: Nguyen 
Author-Name: Son Hong Nghiem 
Author-X-Name-First: Son Hong 
Author-X-Name-Last: Nghiem 
Author-Name: Eduardo Roca 
Author-X-Name-First: Eduardo 
Author-X-Name-Last: Roca 
Author-Name: Parmendra Sharma 
Author-X-Name-First: Parmendra 
Author-X-Name-Last: Sharma 
Title: Bank reforms and efficiency in Vietnamese banks: evidence based on SFA and DEA 
Abstract:
 This study examines the cost efficiency of Vietnamese banks from 2000 to
 2014 in the first stage, and the selection and dynamic effects of two
 governance reforms, foreign partial acquisition and listing on the stock
 exchange, on the efficiency in the second stage. Empirical results from
 the two-stage Stochastic Frontier Analysis (SFA) are highly consistent
 with those from the two-stage Data Envelopment Analysis (DEA) .
 Specifically, the first-stage efficiency estimation indicates that the
 cost efficiency shows a slightly upward trend over the period 2000--2014,
 with the cost efficiency score being 0.93 and state-owned banks
 outperforming joint-stock banks (JSBs). The mixed process seemingly
 unrelated regression estimator which controls the potential endogeneity of
 public listing and foreign acquisition in the second stage shows that
 selection effects occur in the Vietnamese banking system: banks selected
 by the strategic foreign investors for partial acquisition and banks
 selected for public listing are more cost-efficient than those not
 selected. The short-term and long-term dynamic effects of foreign partial
 acquisition are documented: the cost efficiency of the Vietnamese banks
 post-partial acquisition is lower than prior-partial acquisition, and it
 experiences a decreasing trend since partial acquisition. However, the
 short-term and long-term dynamic effects of public listing are not
 evidenced: the cost efficiency of the banks after public listing is not
 statistically different from that before public listing, and it also
 reveals an unclear trend since public listing.
Journal: Applied Economics 
Pages: 2822-2835 
Issue: 30 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1130788 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130788 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2822-2835




Template-Type: ReDIF-Article 1.0
Author-Name: R. A. Korthals 
Author-X-Name-First: R. A. 
Author-X-Name-Last: Korthals 
Author-Name: J. Dronkers 
Author-X-Name-First: J. 
Author-X-Name-Last: Dronkers 
Title: Selection on performance and tracking 
Abstract:
 Tracking is widely used in secondary schools around the world. Some
 countries put more emphasis on the use of performance to place students
 into tracks (e.g. the Netherlands), while in other countries parents have
 more influence on the track their child will go to (e.g. Germany). This
 article examines whether selection into tracks based on performance has an
 effect on the relation between tracking and student performance and
 educational opportunities. Using data from the Programme for International
 Student Assessment for around 185&#xa0;000 students in 31 countries,
 different estimation models are compared. The results indicate that a
 highly differentiated system is best for performance when schools always
 consider prior performance when deciding on student acceptance. In systems
 with a few tracks, there is no such impact. Equality of opportunity is
 best provided for in a system with many tracks when schools always
 consider prior performance.
Journal: Applied Economics 
Pages: 2836-2851 
Issue: 30 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1130789 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130789 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2836-2851




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos E. da Costa 
Author-X-Name-First: Carlos E. 
Author-X-Name-Last: da Costa 
Author-Name: Jaime de Jesus Filho 
Author-X-Name-First: Jaime de 
Author-X-Name-Last: Jesus Filho 
Author-Name: Paulo Matos 
Author-X-Name-First: Paulo 
Author-X-Name-Last: Matos 
Title: Forward-premium puzzle: is it time to abandon the usual regression? 
Abstract:
 The forward premium puzzle is usually evidenced by the rejection of the
 null hypothesis in the uncovered interest parity (UIP) regression. Because
 this parity need only hold in a risk-neutral world, a risk adjustment term
 is missing from the equation if speculation in foreign exchange markets is
 risky. We deal with this issue following the literature which assumes that
 discounted returns on foreign government bonds are log-normal, so we can
 linearize the Euler pricing equations (in level) and obtain a modified UIP
 system for which the risk adjustment term is obtained by applying to the
 pricing kernel-based relations a generalized autoregressive conditional
 heteroscedasticity-in-mean model. However, here we innovate by adopting a
 methodology which differs from all these related works. We construct and
 use a stochastic discount factor that does not depend on a specific model,
 by residing in the space of returns which we extract from the data by
 simply imposing the orthogonality restrictions represented by the Euler
 equations. So, we devise a purely statistical pricing kernel that performs
 well in in-sample level equations. Somewhat disappointingly, the risk
 premium inclusion in the conventional regression changes neither the
 significance nor the magnitude of the forecasting power of the forward
 premium for most currencies we study. The contrasting performance of the
 tests in level and in logs suggests that linearization may be to blame.
Journal: Applied Economics 
Pages: 2852-2867 
Issue: 30 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1130790 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130790 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2852-2867




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Araujo 
Author-X-Name-First: Luis 
Author-X-Name-Last: Araujo 
Author-Name: Vladimir Ponczek 
Author-X-Name-First: Vladimir 
Author-X-Name-Last: Ponczek 
Author-Name: Andr&#xe9; Portela Souza 
Author-X-Name-First: Andr&#xe9; Portela 
Author-X-Name-Last: Souza 
Title: Informality in an economy with active labour courts 
Abstract:
 Job regulations and the justice branch interfere on several aspects of
 labour contracts. We build a model which explores the role of labour
 courts on the wage distribution in both formal and informal sectors. We
 obtain that the presence of active labour courts produces a negative
 relation between the wage gap and the productivity of the worker, a
 regularity documented in the empirical literature. Active labour courts
 also reduce informality of unskilled workers but do not have an impact on
 informality of skilled workers. Some elements and implications of our
 model are tested using Brazilian data.
Journal: Applied Economics 
Pages: 2868-2882 
Issue: 30 
Volume: 48 
Year: 2016 
Month: 6 
X-DOI: 10.1080/00036846.2015.1130791 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130791 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2868-2882




Template-Type: ReDIF-Article 1.0
Author-Name: M. Kevin McGee 
Author-X-Name-First: M. Kevin 
Author-X-Name-Last: McGee 
Title: Two universal, probabilistic measures of competitive imbalance 
Abstract:
 I propose two universal measures of competitive imbalance. The first is,
 like those in the existing literature, based on team season win--loss
 records. The second is based solely on the outcomes of the various series
 of individual matchups during a season. Both measures will on average
 equal (2<italic>p</italic> &#x2212; 1)-super-2, where <italic>p</italic>
 is the &#x2018;typical&#x2019; probability that the stronger team will win
 any particular game. Both measures will average zero when a league is
 competitively balanced and will converge to 1 as the league approaches
 perfect imbalance. In addition, both measures are universal, in that they
 are on average independent of the number of teams in the league and the
 number of games played during the season.
Journal: Applied Economics 
Pages: 2883-2894 
Issue: 31 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1130792 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130792 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2883-2894




Template-Type: ReDIF-Article 1.0
Author-Name: Stelios Bekiros 
Author-X-Name-First: Stelios 
Author-X-Name-Last: Bekiros 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Clement Kyei 
Author-X-Name-First: Clement 
Author-X-Name-Last: Kyei 
Title: A non-linear approach for predicting stock returns and volatility with the use of investor sentiment indices 
Abstract:
 The popular sentiment-based investor index <italic>S</italic>-super-BW
 introduced by Baker and Wurgler (2006, 2007) is shown to have no
 predictive ability for stock returns. However, Huang et al. (2015)
 developed a new investor sentiment index, <italic>S</italic>-super-PLS,
 which can predict monthly stock returns based on a linear framework.
 However, the linear model may lead to misspecification and lack of
 robustness. We provide statistical evidence that the relationship between
 stock returns, <italic>S</italic>-super-BW and
 <italic>S</italic>-super-PLS is characterized by structural instability
 and inherent nonlinearity. Given this, using a nonparametric causality
 approach, we show that neither <italic>S</italic>-super-BW nor
 <italic>S</italic>-super-PLS predicts stock market returns or even its
 volatility, as opposed to previous empirical evidence.
Journal: Applied Economics 
Pages: 2895-2898 
Issue: 31 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1130793 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130793 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2895-2898




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Omid Ranjbar 
Author-X-Name-First: Omid 
Author-X-Name-Last: Ranjbar 
Title: Quantile unit root test and PPP: evidence from 23 OECD countries 
Abstract:
 Application of six different univariate unit root tests to real effective
 exchange rates of 23 OECD countries supports their stationarity or
 Purchasing Power Parity theory (PPP) only in five countries, a result
 consistent with previous research that is known as PPP puzzle. However,
 descriptive statistics of each effective rate reveals a clear sign of
 non-normal distribution. To account for this, we use quantile unit root
 test which allows impact of different shocks to be realized at different
 quantiles. When we applied this new test to the same rates, number of
 countries in which PPP is supported increased to 16. Apparently,
 incorporating effects of shocks improves testing efficiency and provides
 more support for the PPP and reduces the severity of the puzzle.
Journal: Applied Economics 
Pages: 2899-2911 
Issue: 31 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1130794 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130794 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2899-2911




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Seyed Hesam Ghodsi 
Author-X-Name-First: Seyed Hesam 
Author-X-Name-Last: Ghodsi 
Title: Do changes in the fundamentals have symmetric or asymmetric effects on house prices? Evidence from 52 states of the United States of America 
Abstract:
 Time-series studies that have tried to establish the long-run relationship
 between house prices and economic fundamentals have been criticized due to
 low power of their cointegration tests. On the other hand, those who have
 used panel data and panel tests to increase the power have found mixed
 results. Both groups have assumed that changes in the fundamentals have
 symmetric effects on house prices. In this article, we use nonlinear ARDL
 approach to cointegration and error-correction modelling and quarterly
 data from each of the states in the US to show that changes in the
 fundamentals have asymmetric effects on house prices, in the short run as
 well as in the long run. Cointegration between house prices and
 fundamentals is established in 30 states and in District of Columbia.
Journal: Applied Economics 
Pages: 2912-2936 
Issue: 31 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1130795 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130795 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2912-2936




Template-Type: ReDIF-Article 1.0
Author-Name: Sekou Keita 
Author-X-Name-First: Sekou 
Author-X-Name-Last: Keita 
Title: Bilateral real exchange rates and migration 
Abstract:
 Migrants who move across borders are, to a large extent, motivated by the
 prospect of earning higher incomes at destination, which can be partly
 transferred back to their countries of origin via remittances. This
 suggests that the real exchange rate can influence the incentives to
 migrate, as it determines the purchasing power of expected income in terms
 of the currency of the origin country. This article investigates
 empirically how bilateral real exchange rate fluctuations influence
 international migration flows. To do so, we build a dataset of 30 OECD
 destination countries and 165 origin countries over the period 1980--2011
 and estimate an equation derived from a micro-founded random utility
 maximization model that allows for unobserved heterogeneity between
 migrants and non-migrants. Our results show that migration flows are
 highly responsive to bilateral real exchange rates: A 10% real
 appreciation of the currency of the destination country is associated with
 an 18.2--19.4% increase in migration flows.
Journal: Applied Economics 
Pages: 2937-2951 
Issue: 31 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133893 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133893 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2937-2951




Template-Type: ReDIF-Article 1.0
Author-Name: Yankun Chen 
Author-X-Name-First: Yankun 
Author-X-Name-Last: Chen 
Author-Name: Jinghong Shu 
Author-X-Name-First: Jinghong 
Author-X-Name-Last: Shu 
Author-Name: Jin E. Zhang 
Author-X-Name-First: Jin E. 
Author-X-Name-Last: Zhang 
Title: Investor sentiment, variance risk premium and delta-hedged gains 
Abstract:
 Delta-hedged gains are supposed to be negative and represent a volatility
 risk premium. Using a sample of Standard & Poor 500 index options from
 2006 to 2009, this study documents two anomalies that cannot be explained
 by the volatility risk premium. First, delta-hedged gains are more
 negative for out-of-money options than for at-the-money options. Second,
 delta-hedged gains are significantly positive during financial crisis
 period. We propose a behavioural explanation in which both option prices
 and stock prices are affected by investor&#x2019;s sentiment, but
 pessimistic sentiment has a greater impact on stock market than option
 market. This asymmetric response to pessimistic mood in turn affects the
 relative expensiveness of option prices.
Journal: Applied Economics 
Pages: 2952-2964 
Issue: 31 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133894 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133894 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2952-2964




Template-Type: ReDIF-Article 1.0
Author-Name: C. P. Barros 
Author-X-Name-First: C. P. 
Author-X-Name-Last: Barros 
Author-Name: D&#xe9;rcio Mandlaze 
Author-X-Name-First: D&#xe9;rcio 
Author-X-Name-Last: Mandlaze 
Author-Name: Scott Tainsky 
Author-X-Name-First: Scott 
Author-X-Name-Last: Tainsky 
Title: The efficiency of Mozambique soccer league: the Mo&#xe7;ambola 
Abstract:
 This paper analyses the technical efficiency of the Mozambique football
 league from 2008 to 2014 using a Bayesian stochastic frontier model with
 exponential specification. Covariates include contextual characteristics
 such as location, identification as a Muslim club, and sporting
 performance. The results uncover that Mozambique sports clubs display
 varying efficiency, revealing distinct managerial incentives in the
 Mozambique football league. Policy implications are derived, including
 efficiency scores deemed to be acceptable to the league and
 reconsideration of the rationale for national investment in all
 league&#x2019;s clubs.
Journal: Applied Economics 
Pages: 2965-2971 
Issue: 31 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133895 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133895 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2965-2971




Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso 
Author-X-Name-First: Oscar 
Author-X-Name-Last: Afonso 
Title: R&D intensity, economic growth and firm-size growth: theory and practice 
Abstract:
 This article proposes a theoretical knowledge-driven horizontal research
 and development (R&D) endogenous-growth model to explain, for 10
 innovative countries, the co-movement of the respective R&D intensity,
 economic growth and firm-size growth, by exploring short-medium-run and
 long-run growth effects. Bearing in mind some recent literature, we
 improve the R&D technology, by considering that R&D is more labour
 intensive through time as complexity increases, that the diffusion of
 designs is affected by coordination, organizational and transportation
 costs, and that a potential entrant will come up with the right idea is
 reduced because of the presence of a larger number of entrants. We show
 that when the economy is not initially in a steady state, it can take a
 saddle path towards the unique and locally saddle-path stable interior
 steady state. Both transitional-dynamics and steady-state behaviours of
 our theoretical model are then consistent with, respectively, the
 time-series and the cross-sectional evidence.
Journal: Applied Economics 
Pages: 2973-2993 
Issue: 32 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133896 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133896 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:2973-2993




Template-Type: ReDIF-Article 1.0
Author-Name: Chunyang Zhou 
Author-X-Name-First: Chunyang 
Author-X-Name-Last: Zhou 
Author-Name: Xiao Qin 
Author-X-Name-First: Xiao 
Author-X-Name-Last: Qin 
Author-Name: Xundi Diao 
Author-X-Name-First: Xundi 
Author-X-Name-Last: Diao 
Author-Name: Yingchen He 
Author-X-Name-First: Yingchen 
Author-X-Name-Last: He 
Title: Estimating multi-period Value at Risk of oil futures prices 
Abstract:
 In this study, we estimate the multi-period Value at Risk (VaR) of oil
 future prices under a generalized autoregressive conditional
 heteroscedasticity with a skewed-<inline-formula
 id="ILM0001"><inline-graphic xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_1133897_ilm0001.gif"/></inline-formula> residuals
 (GARCH-ST) model, which is developed to account for the stylized facts of
 oil futures returns, such as serial correlation, volatility clustering,
 asymmetry and heavy tails. An efficient approximation algorithm based on
 the moment calibration method is developed to compute the multi-period
 VaR, and the numerical experiments show that the algorithm can yield good
 approximation quality. In the empirical analysis, we find that the
 GARCH-ST model can yield superior out-of-sample performance to a
 GARCH-normal model or a GARCH-<inline-formula id="ILM0002"><inline-graphic
 xmlns:xlink="http://www.w3.org/1999/xlink"
 xlink:href="raec_a_1133897_ilm0002.gif"/></inline-formula> model,
 especially when measuring the extreme tail risk. Meanwhile, the square
 root of time rule (SRTR) tends to underestimate the multi-period tail
 risk, and cannot produce a better performance than the GARCH family
 models.
Journal: Applied Economics 
Pages: 2994-3004 
Issue: 32 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133897 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133897 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:2994-3004




Template-Type: ReDIF-Article 1.0
Author-Name: Eric C. Y. Ng 
Author-X-Name-First: Eric C. Y. 
Author-X-Name-Last: Ng 
Author-Name: Ying Chu Ng 
Author-X-Name-First: Ying Chu 
Author-X-Name-Last: Ng 
Title: What explains the total factor productivity gap between OECD economies and the U.S.? 
Abstract:
 Since 2000, the total factor productivity (TFP) in most of the OECD
 economies relative to the United States has been declining. This article
 develops an empirical model to study the linkages between relative
 differences in TFP gap and relative differences in fundamental factors
 (factor gaps). Using panel data for 33 OECD countries, it finds that the
 machinery and equipment investment gap, the gap in information and
 communication technology penetration related to mobile phone
 subscriptions, the economic globalization gap and the institutional
 quality gap explain significantly the TFP gap between the OECD economies
 and the United States during 2000--2011.
Journal: Applied Economics 
Pages: 3005-3019 
Issue: 32 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133898 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133898 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3005-3019




Template-Type: ReDIF-Article 1.0
Author-Name: Brian M. Mills 
Author-X-Name-First: Brian M. 
Author-X-Name-Last: Mills 
Author-Name: Michael Mondello 
Author-X-Name-First: Michael 
Author-X-Name-Last: Mondello 
Author-Name: Scott Tainsky 
Author-X-Name-First: Scott 
Author-X-Name-Last: Tainsky 
Title: Competition in shared markets and Major League Baseball broadcast viewership 
Abstract:
 This work evaluates the cross-quality elasticity of related products in
 the context of local market Nielsen Local People Meter ratings of Major
 League Baseball (MLB) regular season broadcasts from 2010 through 2013
 from six teams in three shared markets. We employ a fixed effects panel
 regression with multi-way error clustering, finding that fans exhibit
 nuanced behaviour related to the absolute quality and relative quality of
 the two local teams. Our estimates imply quality-related competition for
 viewership between teams in the face of large disparities in quality.
 However, when both teams are of high quality, viewership increased beyond
 what own-team success would predict alone for the competing team. The
 competitive effects are largely dominated by the spillover effects. These
 findings point to complementary effects of team success beyond own-team
 interest, and bring about an important nuance in the literature on market
 definition, competition and substitution in sport.
Journal: Applied Economics 
Pages: 3020-3032 
Issue: 32 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133899 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133899 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3020-3032




Template-Type: ReDIF-Article 1.0
Author-Name: Ruyi Shi 
Author-X-Name-First: Ruyi 
Author-X-Name-Last: Shi 
Author-Name: Shengbao Ji 
Author-X-Name-First: Shengbao 
Author-X-Name-Last: Ji 
Author-Name: Xiaozhen Wang 
Author-X-Name-First: Xiaozhen 
Author-X-Name-Last: Wang 
Author-Name: Fan Li 
Author-X-Name-First: Fan 
Author-X-Name-Last: Li 
Title: Impacts of star-rated hotel expansion on inbound tourism development: evidence from China 
Abstract:
 This article applies heterogeneous firm trade theory, developed for the
 manufacturing sector, to the hotel and tourism industry to detect
 expansion among star-rated hotels in the context of inbound tourism
 development at the macro level. This article adopts both a traditional
 ordinary least squares (OLS) panel model and a threshold panel model using
 data from 31 administrative regions (provinces) in China during the
 2004--2013 period. The results reveal remarkable and significant nonlinear
 relationships between star-rated hotel expansion and inbound tourism
 development, thereby offering sound evidence supporting the research
 hypotheses. Star-rated hotel expansion in most provinces clusters in the
 standardized threshold between 0.48 and 0.83, while only a few hotels have
 realized &#x2018;leapfrog development&#x2019; thus far. In addition, as in
 the particular case of star-rated hotels, inbound tourism development
 should be promoted through investments in human resources rather than
 through the exploitation of natural tourism resource endowments. The
 implications of our results are that rational development plans can be
 made according to different expansion levels of star-rated hotels in
 corresponding regions, when both hotel labour productivity and macro
 tourism environment are considered.
Journal: Applied Economics 
Pages: 3033-3048 
Issue: 32 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133900 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133900 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3033-3048




Template-Type: ReDIF-Article 1.0
Author-Name: Hooi Hooi Lean 
Author-X-Name-First: Hooi 
Author-X-Name-Last: Hooi Lean 
Author-Name: Vinod Mishra 
Author-X-Name-First: Vinod 
Author-X-Name-Last: Mishra 
Author-Name: Russell Smyth 
Author-X-Name-First: Russell 
Author-X-Name-Last: Smyth 
Title: Conditional convergence in US disaggregated petroleum consumption at the sector level 
Abstract:
 We test for convergence in disaggregated petroleum consumption at the
 sector level for the United States using the recently proposed GARCH unit
 root test, suitable for high frequency data. We find evidence of
 convergence for just over half of the series, including total petroleum
 consumption in each sector and approximately three quarters of the
 disaggregated petroleum consumption series in transportation.
Journal: Applied Economics 
Pages: 3049-3061 
Issue: 32 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133901 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133901 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3049-3061




Template-Type: ReDIF-Article 1.0
Author-Name: E. Kilic 
Author-X-Name-First: E. 
Author-X-Name-Last: Kilic 
Author-Name: S. Cankaya 
Author-X-Name-First: S. 
Author-X-Name-Last: Cankaya 
Title: Consumer confidence and economic activity: a factor augmented VAR approach 
Abstract:
 This study aims to analyse the effects of the consumer confidence on
 economic activity for the US market. We use the empirical factor-augmented
 vector autoregression (FAVAR) method, which enables us to incorporate a
 wide range of economic activity factors into the analysis. The consumer
 confidence index (CCI) is chosen as the principal variable that is
 presumed to represent the degree of optimism on the state of economic
 activity. The results show that consumer confidence and economic activity
 are strongly correlated for manufacturing-related factors, such as
 industrial production and inventories. We also observe strong relation
 among CCI and personal consumption expenditures, as well as housing market
 variables.
Journal: Applied Economics 
Pages: 3062-3080 
Issue: 32 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133902 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133902 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3062-3080




Template-Type: ReDIF-Article 1.0
Author-Name: Ruzhao Gao 
Author-X-Name-First: Ruzhao 
Author-X-Name-Last: Gao 
Author-Name: Bing Zhang 
Author-X-Name-First: Bing 
Author-X-Name-Last: Zhang 
Title: How does economic policy uncertainty drive gold--stock correlations? Evidence from the UK 
Abstract:
 In this article, we investigate the effects of economic policy uncertainty
 (EPU) on correlations between the UK stock market and gold market. We find
 that less certain economic policies result in lower correlations, while
 more certain economic policies result in higher correlations. The
 correlations are symmetric and show no structural breaks caused by the
 recent financial crisis. The recent financial crisis has not changed EPU
 effects on the correlations. The effects of one positive
 one-standard-deviation shock of the logarithmic change rate of the EPU on
 the correlations last approximately 19 months.
Journal: Applied Economics 
Pages: 3081-3087 
Issue: 33 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1133903 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133903 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3081-3087




Template-Type: ReDIF-Article 1.0
Author-Name: George Clarke 
Author-X-Name-First: George 
Author-X-Name-Last: Clarke 
Author-Name: Yue Li 
Author-X-Name-First: Yue 
Author-X-Name-Last: Li 
Author-Name: Lixin Colin Xu 
Author-X-Name-First: Lixin Colin 
Author-X-Name-Last: Xu 
Title: Business environment, economic agglomeration and job creation around the world 
Abstract:
 This article looks at how economic agglomeration and the business
 environment affect job creation. The results suggest that economic
 agglomeration is strongly linked to job growth. Modern telecommunications,
 access to export markets, concentration of economic activity in large
 cities and capacity agglomeration, in particular, are important. In
 contrast, many areas of the business environment, including corruption,
 macroeconomic stability and infrastructure are not robustly linked to job
 growth. The main exception to this is that areas of the business
 environment directly related to labour markets are more consistently
 linked to job growth than other areas of the business environment.
Journal: Applied Economics 
Pages: 3088-3103 
Issue: 33 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136392 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136392 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3088-3103




Template-Type: ReDIF-Article 1.0
Author-Name: Young Hoon Lee 
Author-X-Name-First: Young Hoon 
Author-X-Name-Last: Lee 
Author-Name: Hayley Jang 
Author-X-Name-First: Hayley 
Author-X-Name-Last: Jang 
Author-Name: Rodney Fort 
Author-X-Name-First: Rodney 
Author-X-Name-Last: Fort 
Title: Just looking for a good game: competitive balance in the Korean Professional Baseball League 
Abstract:
 Rottenberg&#x2019;s uncertainty of outcome hypothesis is about preferences
 that can vary across fans and sports. We provide the first evidence of the
 empirical power of the hypothesis in the Korean Professional Baseball
 League (KPBL). In a panel data set, team-level aggregation over years
 shows that fans of this league attend in ways consistent with the
 hypothesis at the level of game uncertainty and consecutive season
 uncertainty, but only the first is statistically significant. KPBL fans
 appear to just be looking for a good game. This is consistent with the
 nearly complete concentration of post-season participation among a very
 few teams outside of the major population centre in Seoul and a lack of
 local team identification among KPBL fans. Our work adds to the diversity
 of league structures in the competitive balance literature since talent
 levels in KPBL are the result of parent company advertising choices rather
 than geographic identification. There are research questions and a policy
 implication.
Journal: Applied Economics 
Pages: 3104-3115 
Issue: 33 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136393 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136393 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3104-3115




Template-Type: ReDIF-Article 1.0
Author-Name: Wang Pu 
Author-X-Name-First: Wang 
Author-X-Name-Last: Pu 
Author-Name: Yixiang Chen 
Author-X-Name-First: Yixiang 
Author-X-Name-Last: Chen 
Author-Name: Feng Ma 
Author-X-Name-First: Feng 
Author-X-Name-Last: Ma 
Title: Forecasting the realized volatility in the Chinese stock market: further evidence 
Abstract:
 In this study, the impact of noise and jump on the forecasting ability of
 volatility models with high-frequency data is investigated. A signed jump
 variation is added as an additional explanatory variable in the volatility
 equation according to the sign of return. These forecasting performances
 of models with jumps are compared with those without jumps. Being applied
 to the Chinese stock market, we find that the jump variation has a
 significant in-sample predictive power to volatility and the predictive
 power of the negative one is greater than the positive one. Furthermore,
 out-of-sample evidence based on the fresh model confidence set (MCS) test
 indicates that the incorporation of singed jumps in volatility models can
 significantly improve their forecasting ability. In particular, among the
 realized variance (RV)-based volatility models and generalized
 autoregressive conditional heteroscedasticity (GARCH) class models, the
 heterogeneous autoregressive model of realized volatility (HAR-RV) model
 with the jump test and a decomposed signed jump variation have better
 out-of-sample forecasting performance. Finally, the use of the decomposed
 signed jump variations in predictive regressions can improve the economic
 value of realized volatility forecasts.
Journal: Applied Economics 
Pages: 3116-3130 
Issue: 33 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136394 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136394 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3116-3130




Template-Type: ReDIF-Article 1.0
Author-Name: E. Tsanana 
Author-X-Name-First: E. 
Author-X-Name-Last: Tsanana 
Author-Name: X. Chapsa 
Author-X-Name-First: X. 
Author-X-Name-Last: Chapsa 
Author-Name: C. Katrakilidis 
Author-X-Name-First: C. 
Author-X-Name-Last: Katrakilidis 
Title: Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU 
Abstract:
 This article aims at analysing the issue of conditional convergence in the
 new enlarged European Union (EU) over the period 1995--2012 by means of
 panel data techniques. We examined the issue of conditional convergence in
 the enlarged EU giving particular attention to the effects of corruption
 and bureaucracy on growth controlling for a widely used set of explanatory
 variables such as investment (domestic and foreign), human capital
 formation, inflation, general government final consumption and trade
 openness. Furthermore, we examine if growth responds differently to
 corruption and bureaucracy in the new EU members by means of two
 group-specific interaction variables to capture possible different
 responses to corruption and bureaucracy. The analysis reveals evidence of
 conditional convergence in the enlarged EU, with investment share, foreign
 direct investment, human capital, and country openness appearing as robust
 growth drivers. In contrast, inflation and government consumption rather
 hamper growth. Furthermore, the effects of corruption and bureaucracy on
 growth seem to differ across old and new EU members.
Journal: Applied Economics 
Pages: 3131-3147 
Issue: 33 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136395 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136395 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3131-3147




Template-Type: ReDIF-Article 1.0
Author-Name: Michele Raitano 
Author-X-Name-First: Michele 
Author-X-Name-Last: Raitano 
Author-Name: Francesco Vona 
Author-X-Name-First: Francesco 
Author-X-Name-Last: Vona 
Title: Assessing students&#x2019; equality of opportunity in OECD countries: the role of national- and school-level policies 
Abstract:
 This article analyses the relationship between equality of opportunity and
 the characteristics of the educational system, jointly considering
 country- and school-level policies. Because school social environment
 represents a fundamental channel in shaping educational opportunities, we
 consider all policies, recorded in PISA 2012 dataset, that affect the
 sorting of students to schools. We show that including sorting policies
 enriches the explanation of the socio-economic gradient, that is, the
 association between students&#x2019; performances and parental background,
 with respect to previous studies including only country-level features.
 The negative impact of early tracking on equality of opportunity is
 overvalued without including other sorting policies, while grouping
 students&#x2019; within-school by ability increases the socio-economic
 gradient and a greater students&#x2019; heterogeneity in the school
 reduces the gradient.
Journal: Applied Economics 
Pages: 3148-3163 
Issue: 33 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136396 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136396 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3148-3163




Template-Type: ReDIF-Article 1.0
Author-Name: J. D. Pitts 
Author-X-Name-First: J. D. 
Author-X-Name-Last: Pitts 
Author-Name: B. Evans 
Author-X-Name-First: B. 
Author-X-Name-Last: Evans 
Title: The role of conference externalities and other factors in determining the annual recruiting rankings of football bowl subdivision (FBS) teams 
Abstract:
 In this article, we analyse the impact of school, head coach and
 conference characteristics on a college football team&#x2019;s annual
 recruiting ranking. Utilizing panel data collected from various sources
 covering 2002--2014, we find that measures of recent school success such
 as having winning seasons and finishing seasons ranked in the Associated
 Press (AP) top 25 poll have a positive impact on a team&#x2019;s
 recruiting ranking. Similarly, schools with more successful head coaches
 tend to earn better recruiting classes, while schools facing bowl bans,
 scholarship restrictions and probation tend to earn worse recruiting
 classes. Various measures of conference achievement indicate that
 conference externalities in recruiting may indeed be positive as is often
 suggested; however, there is much potential for a negative externality as
 well.
Journal: Applied Economics 
Pages: 3164-3174 
Issue: 33 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136397 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136397 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3164-3174




Template-Type: ReDIF-Article 1.0
Author-Name: Jakob B. Madsen 
Author-X-Name-First: Jakob B. 
Author-X-Name-Last: Madsen 
Author-Name: Iqtiar Mamun 
Author-X-Name-First: Iqtiar 
Author-X-Name-Last: Mamun 
Title: Has the capital accumulation in the Asian miracle economies been fuelled by growth? 
Abstract:
 The Asian growth miracle is often attributed to factor accumulation under
 the implicit assumption that savings, broadly defined, have been high and
 increasing due to exogenous forces. Using data for India, Indonesia,
 Korea, Singapore and Taiwan over the period 1870--2011 this article
 examines the causal relationship between growth and saving. The response
 of growth to savings is first estimated using instruments to generate
 exogenous variation in savings rates. The residual variation in growth
 that is <italic>not</italic> driven by savings is then used as an
 instrument to estimate the effect of growth on savings. The estimates show
 that the spectacular saving rates in the Asian miracle economies have been
 fuelled by growth, and not the other way around.
Journal: Applied Economics 
Pages: 3175-3194 
Issue: 34 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136398 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136398 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3175-3194




Template-Type: ReDIF-Article 1.0
Author-Name: Sanja Samirana Pattnayak 
Author-X-Name-First: Sanja Samirana 
Author-X-Name-Last: Pattnayak 
Author-Name: Alka Chadha 
Author-X-Name-First: Alka 
Author-X-Name-Last: Chadha 
Title: Is health care a luxury? The debate revisited with new evidence from emerging economies 
Abstract:
 This paper studies the long-run relationship between health care
 expenditure and income using a panel data set of emerging economies over
 the period 1995--2012. The results show that expenditure on health care
 and income are non-stationary and cointegrated. After controlling for
 cross-sectional dependence and unobserved heterogeneity among different
 countries, we find that the income elasticity of health care is less than
 1, indicating that health care is a necessity and not a luxury. Government
 expenditure and out-of-pocket expenditure turn out to be important
 determinants of health care expenditure. Among non-monetary factors,
 results show that old age dependency and female education seem to have
 significant bearings on health care expenditures. Policy recommendations
 suggest that government should increase spending on health care in
 emerging economies since higher incomes may not automatically translate
 into higher health care spending by the people of these countries.
Journal: Applied Economics 
Pages: 3195-3207 
Issue: 34 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136399 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136399 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3195-3207




Template-Type: ReDIF-Article 1.0
Author-Name: Tong Shu 
Author-X-Name-First: Tong 
Author-X-Name-Last: Shu 
Author-Name: Huaisi Liao 
Author-X-Name-First: Huaisi 
Author-X-Name-Last: Liao 
Author-Name: Shou Chen 
Author-X-Name-First: Shou 
Author-X-Name-Last: Chen 
Author-Name: Shouyang Wang 
Author-X-Name-First: Shouyang 
Author-X-Name-Last: Wang 
Author-Name: Kin Keung Lai 
Author-X-Name-First: Kin Keung 
Author-X-Name-Last: Lai 
Author-Name: Lu Gan 
Author-X-Name-First: Lu 
Author-X-Name-Last: Gan 
Title: Analysing remanufacturing decisions of supply chain members in uncertainty of consumer preferences 
Abstract:
 This article formulates a gaming model of the closed-loop supply chain
 with manufacturers (as the leader), sellers and consumers where consumers
 may or may not be willing to pay remunerative price for remanufactured
 products vis-&#xe0;-vis new products. In the model, manufacturers produce
 new as well as remanufactured products, whereas sellers distribute them.
 In stable circumstances, this article presents the functional formula of
 the optimal manufacturing pricing decisions. The results show that when
 the cost of new products is significantly lower than that of
 remanufactured ones, manufacturers choose to produce new products only.
 When the difference between cost of new and remanufactured products is
 moderate, manufacturers tend to produce both new and remanufactured
 products, and in some regions, production of new and remanufactured
 products is proportional to each other. When the difference between cost
 of new and remanufactured products is enormous, their production and sale
 tend to stop. Also, this article analyses the effects of varying cost of
 new and remanufactured products and the recycling rate on pricing
 decisions of supply chain members. This article contributes to the
 management of manufacturers&#x2019; and sellers&#x2019; remanufacturing
 decisions and also provides advice on how governments can guide consumer
 preferences.
Journal: Applied Economics 
Pages: 3208-3227 
Issue: 34 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136400 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136400 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3208-3227




Template-Type: ReDIF-Article 1.0
Author-Name: Anshul Jain 
Author-X-Name-First: Anshul 
Author-X-Name-Last: Jain 
Author-Name: Pratap Chandra Biswal 
Author-X-Name-First: Pratap Chandra 
Author-X-Name-Last: Biswal 
Author-Name: Sajal Ghosh 
Author-X-Name-First: Sajal 
Author-X-Name-Last: Ghosh 
Title: Volatility--volume causality across single stock spot--futures markets in India 
Abstract:
 This study examines the causal relationships between volatility and volume
 across spot and futures market for the 50 constituent stocks of the CNX
 NIFTY Index. Granger non-causality tests implemented using vector
 autoregression (VAR) and asymmetric VAR models indicate the presence of
 significant causal relations from both the spot and futures volume to both
 the spot and futures volatility. Bidirectional causal relationships
 between spot and futures volume were observed for almost all stocks but
 few stocks displayed a similar relationship between volatilities. The
 results highlight the importance of volume in absorbing information and
 its behaviour as the conduit of information.
Journal: Applied Economics 
Pages: 3228-3243 
Issue: 34 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136401 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136401 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3228-3243




Template-Type: ReDIF-Article 1.0
Author-Name: Luis A. Gil-Alana 
Author-X-Name-First: Luis A. 
Author-X-Name-Last: Gil-Alana 
Author-Name: Rangan Gupta 
Author-X-Name-First: Rangan 
Author-X-Name-Last: Gupta 
Author-Name: Fernando Perez de Gracia 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Perez de Gracia 
Title: Persistence, mean reversion and non-linearities in the US housing prices over 1830--2013 
Abstract:
 The objective of this study is to provide a direct estimate of the degree
 of persistence of measures of nominal and real house prices for the US
 economy, covering the longest possible annual sample of data, namely
 1830--2013. The estimation of the degree of persistence accommodates for
 non-linear (deterministic) trends using Chebyshev polynomials in time. In
 general, the results show a high degree of persistence in the series along
 with a component of non-linear behaviour. In general, if we assume
 uncorrelated errors, non-linearities are observed in both nominal and real
 prices, but this hypothesis is rejected in favour of linear models for the
 log-transformation of the data. However, if autocorrelated errors are
 permitted, non-linearities are observed in all cases, and mean reversion
 is found in the case of logged prices, though given the wide confidence
 intervals, the unit root null hypothesis cannot be rejected in these
 cases.
Journal: Applied Economics 
Pages: 3244-3252 
Issue: 34 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1136402 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136402 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3244-3252




Template-Type: ReDIF-Article 1.0
Author-Name: Celia Bilbao 
Author-X-Name-First: Celia 
Author-X-Name-Last: Bilbao 
Author-Name: Luis Vald&#xe9;s 
Author-X-Name-First: Luis 
Author-X-Name-Last: Vald&#xe9;s 
Title: Evaluation of the profitability of quality labels in rural tourism accommodation: a hedonic approach using propensity score matching 
Abstract:
 In recent years, quality labels for the Spanish tourism sector have been
 developed as part of a competitive strategy focused on the differentiation
 of the product. Given this development, it is interesting to analyse the
 profitability of quality labels for the accommodation owners and managers.
 In particular, this article calculates the profitability of a rural
 tourism quality label. Through the use of the hedonic price approach, the
 market valuation of the quality label for rural self-catering cottages is
 obtained. This valuation is subsequently compared with the expenses
 incurred by establishments in achieving the quality label. In order to
 address the usual methodological problems associated with the endogeneity,
 prior to application of the hedonic approach, the propensity score
 matching is used. The results indicate that possessing a quality label has
 a positive impact on the profitability of rural tourism.
Journal: Applied Economics 
Pages: 3253-3263 
Issue: 34 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1137546 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137546 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3253-3263




Template-Type: ReDIF-Article 1.0
Author-Name: Filomena Pietrovito 
Author-X-Name-First: Filomena 
Author-X-Name-Last: Pietrovito 
Title: Do price-earnings ratios explain investment decisions better than Tobin&#x2019;s <italic>q</italic>? Evidence from German firm-level data 
Abstract:
 This article tests the additional information content of price-earnings
 ratios, with respect to Tobin&#x2019;s <italic>q</italic>, in explaining
 firms&#x2019; investment behaviour. While Tobin&#x2019;s
 <italic>q</italic> describes the expected future earnings related to those
 projected by the <italic>book value</italic>, the price-earnings ratio
 compares future growth of earnings based on the projection of
 <italic>current earnings</italic>. In other words, a high price-earnings
 ratio might indicate that investors are willing to rely on future earnings
 growth, even though current earnings are low. By using an unbalanced panel
 of about 500 listed firms from Germany over the period 1987--2007, we find
 that including the price-earnings ratio in the investment equation does
 not change the explanatory power of Tobin&#x2019;s <italic>q</italic>.
 Most notably, the price-earnings ratio exerts a positive and significant
 impact on investment. These results are robust to the inclusion of a
 measure of the firm&#x2019;s internal funds and of fixed effects and also
 to the use of different estimators.
Journal: Applied Economics 
Pages: 3264-3276 
Issue: 34 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1137547 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137547 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3264-3276




Template-Type: ReDIF-Article 1.0
Author-Name: Jian Chen 
Author-X-Name-First: Jian 
Author-X-Name-Last: Chen 
Author-Name: Chenghu Ma 
Author-X-Name-First: Chenghu 
Author-X-Name-Last: Ma 
Title: Risk aversion, fanning preference and volatility smirk on S&P 500 index options 
Abstract:
 This article proposes a novel way of pricing S&P 500 index options in the
 presence of jump risk. Our analysis is built upon an equilibrium option
 pricing rule for a representative agent economy. In particular, we use the
 weighted utility&#x2019;s certainty equivalent to specify agent&#x2019;s
 risk preference, which displays a fanning-out characteristic. We find that
 the fanning effect captures a remarkably large portion of the total market
 risk premium implicit in options. As a result, the model with fanning
 effect generates pronounced volatility smirks.
Journal: Applied Economics 
Pages: 3277-3292 
Issue: 35 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1137548 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137548 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3277-3292




Template-Type: ReDIF-Article 1.0
Author-Name: John E. Ataguba 
Author-X-Name-First: John E. 
Author-X-Name-Last: Ataguba 
Title: Assessing equitable health financing for universal health coverage: a case study of South Africa 
Abstract:
 This article argues that an assessment of progressivity over time can
 provide an indication of progress towards a &#x2018;more&#x2019;
 progressive or a &#x2018;less&#x2019; regressive health financing system
 and can be useful to policymakers. It introduces a framework to
 characterize &#x2018;shifts&#x2019; in progressivity in health financing
 between two time periods using the popularly known Kakwani index of
 progressivity and other associated indices. It also decomposes the
 &#x2018;shifts&#x2019; in progressivity into the relative contributions of
 the changes in income distribution and the changes in the distribution of
 health payments. Further, it proposes graphics that statistically analyses
 how the &#x2018;shifts&#x2019; in progressivity vary along the
 distribution of income. A pro-poor (pro-rich) shift implies that the
 health financing mechanism is becoming more (less) progressive or less
 (more) regressive between two time periods. A proportional shift means
 that progressivity is constant between the two periods. This framework is
 applied to nationally representative household data from South Africa. It
 emerged that such characterization is a very useful tool for policy in
 assessing progress towards equitable health financing.
Journal: Applied Economics 
Pages: 3293-3306 
Issue: 35 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1137549 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137549 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3293-3306




Template-Type: ReDIF-Article 1.0
Author-Name: Sylvi Rzepka 
Author-X-Name-First: Sylvi 
Author-X-Name-Last: Rzepka 
Author-Name: Marcus Tamm 
Author-X-Name-First: Marcus 
Author-X-Name-Last: Tamm 
Title: Local employer competition and training of workers 
Abstract:
 The new training literature suggests that in a monopsonistic market
 employers will not only pay for firm-specific training but also pay for
 general training if the risk of poaching is limited. This implies that
 training should decrease with more competition for employees among firms.
 Using worker-level data for Germany on training participation and on
 training duration, the authors find empirical support for this hypothesis.
 Specifically, the authors find that employees are significantly less
 likely to participate in training if the local density of firms in a
 sector is high and they have shorter training durations when the local
 sector concentration is low.
Journal: Applied Economics 
Pages: 3307-3321 
Issue: 35 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1137550 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137550 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3307-3321




Template-Type: ReDIF-Article 1.0
Author-Name: G. Geronikolaou 
Author-X-Name-First: G. 
Author-X-Name-Last: Geronikolaou 
Author-Name: G. Papachristou 
Author-X-Name-First: G. 
Author-X-Name-Last: Papachristou 
Title: Lottery pricing and price elasticity dispersion in the UK and Canada 
Abstract:
 We estimate effective price elasticities for different quantiles of the
 demand distribution of the UK National Lottery and the Canadian Lotto 649.
 We show that price elasticities vary significantly from draw to draw and
 have a tendency to increase with lottery participation and jackpot size.
 Our findings indicate that setting lottery rules on the basis of mean
 effective price elasticities should be faced with caution because expected
 profits are negatively related to the evident variation of elasticities
 among lottery draws. We also simulate alternative active rollover
 distributions and show that limiting the rollover accumulation by
 withholding portions and ploughing them back in future nonrollover draws
 is potentially profitable.
Journal: Applied Economics 
Pages: 3322-3328 
Issue: 35 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1137551 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137551 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3322-3328




Template-Type: ReDIF-Article 1.0
Author-Name: Searat Ali 
Author-X-Name-First: Searat 
Author-X-Name-Last: Ali 
Author-Name: Benjamin Liu 
Author-X-Name-First: Benjamin 
Author-X-Name-Last: Liu 
Author-Name: Jen Je Su 
Author-X-Name-First: Jen Je 
Author-X-Name-Last: Su 
Title: What determines stock liquidity in Australia? 
Abstract:
 Using an index of corporate governance quality (CGQ), we provide the first
 robust evidence of the determinants of stock liquidity in Australia. We
 assume that CGQ affects stock liquidity because effective governance
 decreases information asymmetries between insiders (e.g. managers) and
 outsiders (e.g. investors), as well as among outsiders, by improving
 information transparency of a firm. Consistent with agency theory, this
 study, using 435 large capitalization firms over the period from 2001 to
 2008, finds a significant positive relationship between CGQ and stock
 liquidity, suggesting that better governed firms have a higher level of
 stock liquidity. These findings are robust to alternative proxies of CGQ,
 stock liquidity and endogeneity bias.
Journal: Applied Economics 
Pages: 3329-3344 
Issue: 35 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1137552 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137552 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3329-3344




Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Hsun Lu 
Author-X-Name-First: Tsung-Hsun 
Author-X-Name-Last: Lu 
Author-Name: Yung-Ming Shiu 
Author-X-Name-First: Yung-Ming 
Author-X-Name-Last: Shiu 
Title: Can 1-day candlestick patterns be profitable on the 30 component stocks of the DJIA? 
Abstract:
 We set out in this study to conduct a comprehensive analysis of the
 profitability of every possible 1-day candlestick pattern using data on
 the 30 component stocks of the Dow Jones Industrial Average index. Our
 study involves a very lengthy sample period running from January 1974 to
 December 2009, with the results revealing a noticeable increase in the
 predictive power of 1-day candlestick patterns from 1992 onwards. Our
 evidence shows that several of the patterns may well prove to be
 profitable for the Dow Jones Industrial Average stocks. The robustness of
 our results is subsequently confirmed based upon a bootstrap analysis.
Journal: Applied Economics 
Pages: 3345-3354 
Issue: 35 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1137553 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137553 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3345-3354




Template-Type: ReDIF-Article 1.0
Author-Name: Jos&#xe9; Manuel Cordero 
Author-X-Name-First: Jos&#xe9; Manuel 
Author-X-Name-Last: Cordero 
Author-Name: Manuel Mu&#xf1;iz 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Mu&#xf1;iz 
Author-Name: Cristina Polo 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Polo 
Title: The determinants of cognitive and non-cognitive educational outcomes: empirical evidence in Spain using a Bayesian approach 
Abstract:
 This article aims to extend the literature about the role played by
 socio-economic and family background in educational outcomes by comparing
 the determinants of two different dimensions of educational output:
 academic achievement and non-cognitive traits. To do this, we explore the
 information provided by a self-report survey developed specifically for
 the purpose of this research. This will provide us with an innovative
 measure of non-cognitive performance based on particular personal traits,
 such as responsibility, effort, motivation and critical capacity, as well
 as a common measure of cognitive proficiency. We use a Bayesian approach
 to estimate the potential influence of multiple individual and family
 variables on both dimensions of educational output. From our results, we
 find that, despite some similarities, there are several important
 divergences with regard to some socio-economic variables that have been
 traditionally considered to be the most influential determinants of
 academic achievement which do not appear to have a significant impact on
 non-cognitive outcomes.
Journal: Applied Economics 
Pages: 3355-3372 
Issue: 35 
Volume: 48 
Year: 2016 
Month: 7 
X-DOI: 10.1080/00036846.2015.1137554 
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137554 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3355-3372




Template-Type: ReDIF-Article 1.0
Author-Name: Jinpeng Ma 
Author-X-Name-First: Jinpeng 
Author-X-Name-Last: Ma 
Author-Name: Max Tang 
Author-X-Name-First: Max 
Author-X-Name-Last: Tang 
Author-Name: Yuming Wang 
Author-X-Name-First: Yuming 
Author-X-Name-Last: Wang 
Title: Value of hedge and expected returns 
Abstract:
 We demonstrate how it is possible to generate value for an investor with a
 hedge attached to the buy-and-hold strategy of an S&P 500 index fund. We
 study the S&P 500 index portfolio (not including dividends) and the
 value-weighted S&P 500 index portfolio (including dividends) of the Center
 for Research in Securities Prices for 1967:01--2011:12, using the capacity
 utilization and the unemployment rates in real time to determine if a
 hedge position should be initiated or closed. A hedge is initiated if the
 capacity utilization, the unemployment rate or a combination of the two
 signals a contraction in the real economy. The hedge position is closed if
 it signals otherwise an expansion. We use utility gains (Campbell and
 Thompson 2008), the manipulation-proof performance measure (MPPM)
 statistics (Ingersoll et al. 2007) and the P-Sharpe ratio (Bailey and
 L&#xf3;pez de Prado 2012) to evaluate the performance of a particular
 hedge strategy. The empirical results show that there are infinitely many
 hedges that can generate positive utility gains, higher MPPM statistics
 and higher P-Sharpe ratios.
Journal: Applied Economics 
Pages: 3373-3398 
Issue: 36 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139675 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139675 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3373-3398




Template-Type: ReDIF-Article 1.0
Author-Name: Amar I. Anwar 
Author-X-Name-First: Amar I. 
Author-X-Name-Last: Anwar 
Author-Name: Mazhar Y. Mughal 
Author-X-Name-First: Mazhar Y. 
Author-X-Name-Last: Mughal 
Title: Migrant remittances and fertility 
Abstract:
 This study examines the role of migrants&#x2019; remittances in developing
 countries&#x2019; fertility transition. Employing an unbalanced panel of
 South Asian countries and controlling for various economic and
 socio-demographic factors, we find that remittances are significantly
 associated with a lower number of children born to women of childbearing
 age. This suggests the remittances&#x2019; substitution effect to be at
 play rather than the income effect, and may result from decreased need for
 children for financing the household&#x2019;s future needs as well as from
 better access to healthcare and contraceptive methods available to migrant
 households. Remittances&#x2019; association with fertility appears to be
 more important than the transfer of fertility norms from migrants&#x2019;
 host countries. The monetary aspects of international migration may
 therefore be more important for the region&#x2019;s demographic transition
 than social remittances.
Journal: Applied Economics 
Pages: 3399-3415 
Issue: 36 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139676 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139676 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3399-3415




Template-Type: ReDIF-Article 1.0
Author-Name: R. Xie 
Author-X-Name-First: R. 
Author-X-Name-Last: Xie 
Author-Name: O. Isengildina-Massa 
Author-X-Name-First: O. 
Author-X-Name-Last: Isengildina-Massa 
Author-Name: G. P. Dwyer 
Author-X-Name-First: G. P. 
Author-X-Name-Last: Dwyer 
Author-Name: J. L. Sharp 
Author-X-Name-First: J. L. 
Author-X-Name-Last: Sharp 
Title: The impact of public and semi-public information on cotton futures market 
Abstract:
 This study estimated the impact of all major public and semi-public
 reports on the cotton futures market from 1995 through 2012. The
 estimation was based on the event study approach with the events measured
 by the release of five major reports: Export Sales, Crop Progress, World
 Agricultural Supply and Demand Estimates (WASDE) and Prospective Plantings
 (public reports from US Department of Agriculture) and Cotton This Month
 (semi-public report from International Cotton Advisory Committee). The
 best-fitting IGARCH(1,1)-t model that accounted for the day-of-week,
 seasonality and stock levels was used to measure the report effects on
 daily nearby cotton close-to-close futures returns. Prospective Plantings
 and WASDE reports appeared to be the most important sources of information
 in the cotton markets moving the conditional standard deviation of returns
 by an average of 14.4 and 9.6 percentage points, respectively. However,
 significant market reaction was not found for the other three reports. Our
 analysis revealed that, in the presence of clustering, ignoring the impact
 of other reports would have resulted in about 18% overestimation of WASDE
 impact.
Journal: Applied Economics 
Pages: 3416-3431 
Issue: 36 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139677 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139677 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3416-3431




Template-Type: ReDIF-Article 1.0
Author-Name: Boriss Siliverstovs 
Author-X-Name-First: Boriss 
Author-X-Name-Last: Siliverstovs 
Title: The franc shock and Swiss GDP: how long does it take to start feeling the pain? 
Abstract:
 The article addresses the question on what is the typical time horizon
 over which a full transmission of movements in the real exchange rate
 takes place into real economy. We base our analysis on the mixed-frequency
 small-scale dynamic factor model (DFM) proposed by Siliverstovs in 2012
 fitted to the Swiss data. In this article, we augment the benchmark model
 with the real exchange rate of the Swiss franc vis-a-vis currencies of its
 24 trading partners, while keeping the rest of model specification intact.
 We are interested in investigating the relationship between the common
 latent factor, representing the Swiss business cycle, and the real
 exchange rate. We explore the temporal relationship between these two
 variables by varying the time lag with which the real exchange rate enters
 the factor model by recording the magnitude and statistical significance
 of the factor loading coefficient in the equation pertaining to the real
 exchange rate variable. Our main conclusion is that the fluctuations in
 the exchange rate start influencing real economy after 1 month and their
 effect is practically over after 13 months. The largest effect is recorded
 at the time horizon of about 6 to 9 months.
Journal: Applied Economics 
Pages: 3432-3441 
Issue: 36 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139678 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139678 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3432-3441




Template-Type: ReDIF-Article 1.0
Author-Name: Q. Li 
Author-X-Name-First: Q. 
Author-X-Name-Last: Li 
Author-Name: C.H. Peng 
Author-X-Name-First: C.H. 
Author-X-Name-Last: Peng 
Title: The stock market effect of air pollution: evidence from China 
Abstract:
 In financial studies, environmental stimuli such as sunshine, temperature,
 and daylight are often used as proxies for people&#x2019;s collective mood
 swings to test their effects on the stock market. China has experienced
 serious air pollution problems in recent years, and Chinese public
 awareness of air pollution has soared. In this paper, we use China as a
 natural experiment to investigate the effect on stock returns of depressed
 moods induced by air pollution. Daily air-pollution data from 2005 to 2014
 are analysed and the results obtained from the empirical research show
 that a contemporaneous negative and a two-day lagged positive relationship
 exists between air pollution levels and stock returns over this time
 period. The relationship is mediated by the influence of air pollution on
 investment decisions. The results also indicate that the effect is
 weakened for companies that protect air quality, but no stronger effect is
 detected for polluting companies. The findings imply that air pollution is
 a behavioural factor with some connection to stock returns in China.
Journal: Applied Economics 
Pages: 3442-3461 
Issue: 36 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139679 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139679 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3442-3461




Template-Type: ReDIF-Article 1.0
Author-Name: Raul Ibarra 
Author-X-Name-First: Raul 
Author-X-Name-Last: Ibarra 
Title: How important is the credit channel in the transmission of monetary policy in Mexico? 
Abstract:
 This article empirically examines the importance of the credit channel of
 monetary policy in Mexico for the period 2004--2013. We estimate a vector
 autoregressive (VAR) model to analyse the effects of a monetary policy
 shock on real output, and we also use a threshold VAR model to investigate
 asymmetric effects of contractionary and expansionary policies. The
 empirical results suggest that a contractionary monetary policy results in
 a fall in the supply of loans together with an increase in the spread
 between the lending and deposit rate. To the extent that some borrowers
 are dependent on bank loans for credit, the reduced supply of loans
 amplifies the effects of monetary policy on output associated with the
 traditional interest rate channel. Our results also suggest that the
 importance of the credit channel is larger for contractionary shocks than
 for expansionary shocks.
Journal: Applied Economics 
Pages: 3462-3484 
Issue: 36 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139680 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139680 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3462-3484




Template-Type: ReDIF-Article 1.0
Author-Name: G. R. Chen 
Author-X-Name-First: G. R. 
Author-X-Name-Last: Chen 
Title: Dynamic Model for Market Competition and Price Rigidity 
Abstract:
 This article presents a price floor model in which durability, unit costs
 and production period are factors in explaining price rigidity. This
 article elaborates that cost structure plays an essential role in
 resolving the inconclusive relationship between market concentration and
 price rigidity. When the industry is characterized by decreasing returns
 of scale, the degree of price flexibility decreases as market competition
 intensifies. The reverse is true when the industry exhibits increasing
 returns of scale. The factors that cause price rigidity also foster price
 adjustment asymmetry and price adjustment lag. During times of recession,
 the model exhibits upward price flexibility as costs increase, but
 downward price rigidity as costs decrease. Even under forward-looking
 expectations, the way in which firms adjust prices could look as though
 they have adaptive expectations. If price stickiness is a characteristic
 of market competition, then public policies determined by price level
 could be too drastic for firms in competitive markets.
Journal: Applied Economics 
Pages: 3485-3496 
Issue: 36 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139681 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139681 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3485-3496




Template-Type: ReDIF-Article 1.0
Author-Name: Volkan Recai Cetin 
Author-X-Name-First: Volkan Recai 
Author-X-Name-Last: Cetin 
Author-Name: Serdal Bahce 
Author-X-Name-First: Serdal 
Author-X-Name-Last: Bahce 
Title: Measuring the efficiency of health systems of OECD countries by data envelopment analysis 
Abstract:
 This study aims to assess the efficiency of health sectors of 34 OECD
 countries by employing input-oriented data envelopment analysis (DEA)
 method both under constant and variable returns to scale assumptions. In
 the analysis, the number of doctors, number of patient beds and health
 expenditure per capita were used as input variables and life expectancy at
 birth and infant mortality rate were used as outputs. At the first stage,
 DEA analysis was performed for 34 countries, and at the second stage
 outlier 8 countries were eliminated to form a more homogeneous group and
 to achieve more accurate results. 11 of the 26 countries were found to
 have efficient health systems, and there is room for efficiency
 improvements in health sector in the remaining 15 countries.
Journal: Applied Economics 
Pages: 3497-3507 
Issue: 37 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139682 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139682 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3497-3507




Template-Type: ReDIF-Article 1.0
Author-Name: Shi Chen 
Author-X-Name-First: Shi 
Author-X-Name-Last: Chen 
Author-Name: Jeng-Yan Tsai 
Author-X-Name-First: Jeng-Yan 
Author-X-Name-Last: Tsai 
Author-Name: Rosemary Jou 
Author-X-Name-First: Rosemary 
Author-X-Name-Last: Jou 
Title: Equities of scope as merger incentives under capital regulation: narrow versus synergy banking valuation 
Abstract:
 The call options theory of corporate security valuation is applied to
 narrow-banking contingent claims of one bank, while the cap options theory
 is applied to synergy-banking contingent claims of another bank. This
 article investigates efficiency gains specified as equities of scope
 associated with the likelihood of the two banks involved in merger under
 capital regulation. We find that merger incentives are encouraged when the
 narrowing banking is conducted by the consolidated bank, whereas
 discouraged when the synergy banking is conducted. Raising bank capital
 requirement leads to an increased interest margin of the consolidated bank
 with the narrow banking valuation; however, to a decreased margin of the
 consolidated bank with the synergy banking valuation. An increase in the
 capital regulation reduces the merger incentives in the narrow banking
 valuation whereas increases the merger disincentive in the synergy banking
 valuation. These findings are consistent with the organizational theory
 that predicts a comparative advantage of narrow banking proposals in bank
 mergers.
Journal: Applied Economics 
Pages: 3508-3525 
Issue: 37 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139683 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139683 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3508-3525




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Yang 
Author-X-Name-First: Wei 
Author-X-Name-Last: Yang 
Title: Are contributions of time and money substitutes or complements? 
Abstract:
 This article empirically investigates the relationship between donations
 of time and money using Canadian tax policy reforms that changed the tax
 price of charitable donations. The 1988 reform where a charitable tax
 deduction was converted to a credit and the 2000 reform in provincial
 income taxes provide tax price variations plausibly exogenous to
 individuals&#x2019; unobserved heterogeneity. Our estimates on cross-price
 effects imply that individuals make more time donations as the tax price
 of charitable donations increases and hence money and time donations are
 substitutes, as some theories would imply. This contrasts with earlier
 findings using cross-sectional data.
Journal: Applied Economics 
Pages: 3526-3537 
Issue: 37 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1139684 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139684 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3526-3537




Template-Type: ReDIF-Article 1.0
Author-Name: Adelina Gschwandtner 
Author-X-Name-First: Adelina 
Author-X-Name-Last: Gschwandtner 
Author-Name: Michael Hauser 
Author-X-Name-First: Michael 
Author-X-Name-Last: Hauser 
Title: Profit persistence and stock returns 
Abstract:
 This article attempts to assemble further empirical evidence on the
 relationship between the product and the financial market. Drawing back on
 work in industrial organization, we analyse the relationship between
 profit <italic>persistence</italic> and factor-adjusted stock returns
 looking at about 2000 listed US firms over the last 34&#xa0;years. While
 the relationship between (current, lagged and unexpected) profits/earnings
 and returns has been extensively analysed before, to our knowledge this is
 the first study to look at the relationship between stock returns and
 profit <italic>persistence</italic>. We interpret profit persistence as a
 result of market competition and innovation of the firm. It is shown that
 firm-specific long-run profit <italic>persistence</italic> after
 correction for other additional economic fundamentals of the firm has a
 positive impact on four-factor adjusted returns and a negative impact on
 their volatility.
Journal: Applied Economics 
Pages: 3538-3549 
Issue: 37 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142652 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142652 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3538-3549




Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Cheng Lai 
Author-X-Name-First: Hung-Cheng 
Author-X-Name-Last: Lai 
Author-Name: Tseng-Chan Tseng 
Author-X-Name-First: Tseng-Chan 
Author-X-Name-Last: Tseng 
Author-Name: Sz-Chi Huang 
Author-X-Name-First: Sz-Chi 
Author-X-Name-Last: Huang 
Title: Combining value averaging and Bollinger Band for an ETF trading strategy 
Abstract:
 The decision-making of investors is highly influenced by their feelings.
 According to behavioural finance, investor greed and fear would form
 irrational behaviour and affect their portfolio allocation. Although
 well-known mechanical investment strategy of dollar cost averaging (DCA)
 and value averaging (VA) could eliminate the problems of when to purchase,
 there are still some disadvantages to consider. For example, using a DCA
 strategy may be able to decrease volatility in portfolio so as to not
 effect investment decision, but it gives no rule for selling and may
 increase the opportunity cost of time if investors start deducted at peak
 prices. On the other hand, VA gives more aggressive sell signals to
 control the value of the portfolio to the level desired, but the investor
 may not have enough money purchase of a large number of shares in sharp
 decline period. Therefore, we use VA as main strategy and Bollinger Band
 as assist indicator for check for volatility for entry or exit. Through
 analysis and simulation, the new strategy we design does improve the
 performance during both bull and bear market periods.
Journal: Applied Economics 
Pages: 3550-3557 
Issue: 37 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142653 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142653 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3550-3557




Template-Type: ReDIF-Article 1.0
Author-Name: W.D. Chen 
Author-X-Name-First: W.D. 
Author-X-Name-Last: Chen 
Title: Detecting multiple factors in panel data: an application on the growth of local regions in China 
Abstract:
 Due to unbalanced growth in China&#x2019;s local regions, we construct a
 panel data model with multiple common factors to examine the differences
 among the growth factors in these areas. This article shows the various
 impacts from the supply and demand sides on economic growth. Different
 from the demand side, the supply-side impacts have permanent influences.
 This article focuses on these deep and profound impacts to explain the
 reasons behind China&#x2019;s fast economic growing. By using data on 27
 regions from 1958 to 2013, we summarize the main permanent influences
 along three lines. The first comes from the coastal regions, which have
 learned modern technology and systems from foreign companies, such as in
 Guangdong, Zhejiang, Fujian and Liaoning. The second comes from big
 cities, such as Beijing and Shanghai, in which a huge migration has given
 the companies opportunities to recruit excellent workers, making the
 resource allocation specialized and more efficient. The third is from the
 government&#x2019;s major public works, which have improved areas&#x2019;
 infrastructure and assisted long-run economic growth, such as for Sichuan,
 Guangxi and Yunnan.
Journal: Applied Economics 
Pages: 3558-3568 
Issue: 37 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142654 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142654 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3558-3568




Template-Type: ReDIF-Article 1.0
Author-Name: Gilbert Cette 
Author-X-Name-First: Gilbert 
Author-X-Name-Last: Cette 
Author-Name: R&#xe9;my Lecat 
Author-X-Name-First: R&#xe9;my 
Author-X-Name-Last: Lecat 
Author-Name: Ahmed Ould Ahmed Jiddou 
Author-X-Name-First: Ahmed 
Author-X-Name-Last: Ould Ahmed Jiddou 
Title: Margin rate and the cycle: the role of trade openness 
Abstract:
 Using three datasets of French manufacturing firms, this article studies
 the role of trade openness, in relation with the cycle, as a determinant
 of company margin rate. Margin rates increase as capacity utilization
 tightens (and vice versa), reflecting the procyclicality of margin rates.
 However, high import rates are limiting this procyclicality: when
 capacities are tight, domestic producers may not be able to serve demand,
 but foreign producers may substitute for them if they are already present
 on the market as reflected by the level of import rates.
Journal: Applied Economics 
Pages: 3569-3575 
Issue: 37 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142655 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142655 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3569-3575




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Wanke 
Author-X-Name-First: Peter 
Author-X-Name-Last: Wanke 
Author-Name: Vincent Blackburn 
Author-X-Name-First: Vincent 
Author-X-Name-Last: Blackburn 
Author-Name: Carlos Pestana Barros 
Author-X-Name-First: Carlos Pestana 
Author-X-Name-Last: Barros 
Title: Cost and learning efficiency drivers in Australian schools: a two-stage network DEA approach 
Abstract:
 This article explore performance issues in Australian public schools,
 using a two-stage DEA network model, which accounts simultaneously for
 both cost and learning efficiency levels. In the cost efficiency stage,
 different types of expenses and investments are employed to support a
 given number of students, teachers and administrative staff. In the
 learning efficiency stage, these groups of individuals help to produce
 important outputs related to performance in student tests and school
 rankings. Results indicate that Australian public schools are
 heterogeneous. Policy implications are also discussed.
Journal: Applied Economics 
Pages: 3577-3604 
Issue: 38 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142656 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142656 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3577-3604




Template-Type: ReDIF-Article 1.0
Author-Name: Matteo F. Ghilardi 
Author-X-Name-First: Matteo F. 
Author-X-Name-Last: Ghilardi 
Author-Name: Sergio Sola 
Author-X-Name-First: Sergio 
Author-X-Name-Last: Sola 
Title: Investment scaling up and the role of government 
Abstract:
 This article studies the fiscal and welfare implications of a scaling up
 of public investment when the government is subject to inefficiencies on
 the spending and on the tax collection side. In our simulations, the
 scaling up of public investments results in higher long-run output and
 consumption levels but requires a fiscal stabilization package in order to
 preserve fiscal sustainability. The effects on consumers&#x2019; welfare
 after the fiscal adjustment are nontrivial. Our welfare analysis shows
 that consumers&#x2019; welfare is increased when the government smooths
 the fiscal adjustment via higher borrowing and not through an increase in
 taxation. Moreover, the comparison between several stabilization packages
 via tax adjustment shows that higher welfare is achieved when the
 government relies mostly on taxation of capital as this allows higher
 levels of consumption. Lower fiscal costs that do not undermine fiscal
 sustainability can however be achieved if the government manages to reduce
 inefficiency in tax collection. Finally, we consider a change in the trade
 regime that causes a decline in revenues. We find that the higher fiscal
 burden required to preserve fiscal sustainability would completely wipe
 out the welfare gain of higher public investments.
Journal: Applied Economics 
Pages: 3605-3625 
Issue: 38 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142657 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142657 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3605-3625




Template-Type: ReDIF-Article 1.0
Author-Name: Bin Liu 
Author-X-Name-First: Bin 
Author-X-Name-Last: Liu 
Author-Name: Charles Cullinan 
Author-X-Name-First: Charles 
Author-X-Name-Last: Cullinan 
Author-Name: Junrui Zhang 
Author-X-Name-First: Junrui 
Author-X-Name-Last: Zhang 
Author-Name: Fangjun Wang 
Author-X-Name-First: Fangjun 
Author-X-Name-Last: Wang 
Title: Loan guarantees and the cost of debt: evidence from China 
Abstract:
 In this article, we examine the potential influence of loan guarantees and
 the nature of ownership on a company&#x2019;s cost of debt. Using data on
 Chinese A-share listed companies from 2007 to 2014, we find that
 guaranteeing another entity&#x2019;s debt significantly increases the
 guarantor&#x2019;s cost of its own debt. Regarding the nature of
 ownership, our results indicate that the cost of debt for state-owned
 enterprises (SOEs) is lower than that for non-SOEs. Among SOEs, firms
 controlled by the central government have lower cost of debt than firms
 controlled by local governments. We also find some evidence that local
 government ownership mitigates the effects of loan guarantees on the cost
 of a guarantor&#x2019;s own debt.
Journal: Applied Economics 
Pages: 3626-3643 
Issue: 38 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142658 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142658 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3626-3643




Template-Type: ReDIF-Article 1.0
Author-Name: Hyunbae Chun 
Author-X-Name-First: Hyunbae 
Author-X-Name-Last: Chun 
Author-Name: Jung-Wook Kim 
Author-X-Name-First: Jung-Wook 
Author-X-Name-Last: Kim 
Author-Name: Randall Morck 
Author-X-Name-First: Randall 
Author-X-Name-Last: Morck 
Title: Productivity growth and stock returns: firm- and aggregate-level analyses 
Abstract:
 A firm&#x2019;s stock return is affected not only by its own productivity
 growth rate, but also by other firms&#x2019; productivity growth rates. We
 show that this spillover effect is significant and time-varying, and
 underlies a fallacy of composition observed in late 20th century U.S.
 data: stock returns and productivity growth are correlated positively in
 firm-level data but negatively in aggregate data. This seeming fallacy of
 composition reflects Schumpeterian creative destruction: a few technology
 winners&#x2019; stocks rise with their rising productivity while many
 technology losers&#x2019; stocks fall with their declining productivity.
 Thus, most individual firms&#x2019; stock returns correlate negatively
 with aggregate productivity growth. This implies that technological
 innovation need not be a blessing for all firms and as a result, for
 investors holding the market. Our findings also provide a firm-level
 technology innovation-based explanation of prior findings that the market
 return correlates negatively with aggregate earnings.
Journal: Applied Economics 
Pages: 3644-3664 
Issue: 38 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142659 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142659 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3644-3664




Template-Type: ReDIF-Article 1.0
Author-Name: Francesca Di Iorio 
Author-X-Name-First: Francesca 
Author-X-Name-Last: Di Iorio 
Author-Name: Stefano Fachin 
Author-X-Name-First: Stefano 
Author-X-Name-Last: Fachin 
Author-Name: Riccardo Lucchetti 
Author-X-Name-First: Riccardo 
Author-X-Name-Last: Lucchetti 
Title: Can you do the wrong thing and still be right? Hypothesis testing in I(2) and near-I(2) cointegrated VARs 
Abstract:
 In this paper, we investigate the small-sample performance of LR tests on
 long-run coefficients in the <italic>I</italic>(2) model; we focus on a
 comparison between <italic>I</italic>(2) and near-<italic>I</italic>(2)
 data, i.e. <italic>I</italic>(1) data with a second root very close to
 unity, and report the results of some Monte Carlo experiments. With
 near-<italic>I</italic>(2) data, the finite-sample properties of the tests
 are (i) similar to those found with genuine <italic>I</italic>(2) data,
 (ii) systematically superior to those of the analogous tests constructed
 in the <italic>I</italic>(1) model, even if the latter is, in principle,
 correctly specified and the former is not. Therefore, there seems to be
 strong support to the idea that, in practice, modelling
 near-<italic>I</italic>(2) data using the <italic>I</italic>(2) model may
 be a good idea, despite the inherent misspecification.
Journal: Applied Economics 
Pages: 3665-3678 
Issue: 38 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142660 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142660 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3665-3678




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Yong Wang 
Author-X-Name-First: Frank Yong 
Author-X-Name-Last: Wang 
Author-Name: Xu Wei 
Author-X-Name-First: Xu 
Author-X-Name-Last: Wei 
Author-Name: Li Li 
Author-X-Name-First: Li 
Author-X-Name-Last: Li 
Title: Investors&#x2019; heterogeneity and tranching 
Abstract:
 The article presents a theoretic model of tranching in asset
 securitization. When potential buyers are heterogeneous in the constraint
 on their portfolios, we find that senior tranche, which is less risky and
 created by tranching, will introduce more investors and thus reduce risk
 exposure to investors. Thus, tranching helps improve the sale&#x2019;s
 revenue. We also find that the portfolio constraints of investors are
 always binding at optimum, which is called marginal rating.
Journal: Applied Economics 
Pages: 3679-3684 
Issue: 38 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142661 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142661 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3679-3684




Template-Type: ReDIF-Article 1.0
Author-Name: Khondker Aktaruzzaman 
Author-X-Name-First: Khondker 
Author-X-Name-Last: Aktaruzzaman 
Author-Name: Omar Farooq 
Author-X-Name-First: Omar 
Author-X-Name-Last: Farooq 
Title: Impact of microcredit on borrowers&#x2019; expenditures: a fuzzy regression discontinuity design approach 
Abstract:
 This article uses the data from 69 villages in Bangladesh to estimate the
 effect of participation in microcredit programmes on household
 expenditures. A regression discontinuity design (RDD) is used to identify
 the credit effect. Our results show heterogeneous treatment effect on
 different types of expenditures. We show that access to credit reduces per
 capita expenditure on durable goods such as kitchen equipment, furniture,
 repair and maintenance of house and increases the expenditure on per
 school-going child. We also show insignificant impact of access to credit
 on non-durable goods and health care, recreation and gifts. Interestingly,
 our results indicate a positive impact of microcredit on village-level
 expenditures.
Journal: Applied Economics 
Pages: 3685-3694 
Issue: 38 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142662 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142662 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3685-3694




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Jo&#xe3;o Jorge 
Author-X-Name-First: Maria Jo&#xe3;o 
Author-X-Name-Last: Jorge 
Author-Name: M&#xe1;rio Gomes Augusto 
Author-X-Name-First: M&#xe1;rio Gomes 
Author-X-Name-Last: Augusto 
Title: Is hedging successful at reducing financial risk exposure? 
Abstract:
 This article analyses whether firms use risk management instruments for
 hedging or speculative purposes. First, by analysing the relationship
 between the firm&#x2019;s stock returns and financial risks in 567
 Euronext firms, we measure the firm&#x2019;s exposure to risk. Next, we
 investigate the effect of hedging in such exposures, addressing
 simultaneously the endogeneity of hedging decision through a treatment
 effect methodology. We have found that firms in our sample display higher
 percentages of exposure, when weighed against preceding studies, and
 confirmed that hedging reduces the level of the underlying financial
 exposure, concluding that firms use risk management instruments with
 hedging purposes.
Journal: Applied Economics 
Pages: 3695-3713 
Issue: 39 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142663 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142663 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3695-3713




Template-Type: ReDIF-Article 1.0
Author-Name: Desu Liu 
Author-X-Name-First: Desu 
Author-X-Name-Last: Liu 
Title: Bivariate risk attitudes, informal care and saving 
Abstract:
 The article examines choices of saving and caregiving for informal
 caregivers who will face uncertainty in health status of elderly parents.
 The caregivers have a general form of utility with two attributes: wealth
 and parental health. Informal care will substitute for future need of
 formal care when parents are in good health. The article first studies the
 optimal levels of saving and of caregiving and the link between them.
 Comparative statics results depending on partial risk aversion or
 correlation attitude are then presented. These results concern the effects
 of changes in the opportunity cost of caregiving, the share of expected
 bequest, the health status and the interest rate. The analysis is also
 extended to investigate the role of cross-prudence/imprudence in wealth
 when a background health risk is introduced.
Journal: Applied Economics 
Pages: 3714-3722 
Issue: 39 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142664 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142664 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3714-3722




Template-Type: ReDIF-Article 1.0
Author-Name: Ewelina Soko&#x142;owska 
Author-X-Name-First: Ewelina 
Author-X-Name-Last: Soko&#x142;owska 
Title: Forecasts of the managed futures market -- an empirical analysis 
Abstract:
 Alternative investments, including managed futures, are primarily intended
 for institutional investors and for very wealthy individual investors. It
 therefore seems logical to assume, that the increase of wealth on a global
 scale can be a factor impacting the value of transactions in individual
 segments of the alternative-investment market. The purpose of this article
 is to indicate the factors affecting growth of managed futures
 transactions. Another research goal is to answer the question: Does the
 increase of wealth on a global scale affect the value of the managed
 futures transactions? The article will also present short-term forecasts
 of the transactions on the managed futures market for the years
 2015--2017. The forecasts which will be constructed are meant to present
 possible scenarios of the market&#x2019;s further development. Evolution
 of the alternative investment segment leads to development of those
 categories, which fulfil the expectations of market participants and meet
 the requirement and expiration of the remaining investments which do not
 attract investors and are no longer accepted by them.
Journal: Applied Economics 
Pages: 3723-3733 
Issue: 39 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1142665 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142665 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3723-3733




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed M. Elgammal 
Author-X-Name-First: Mohammed M. 
Author-X-Name-Last: Elgammal 
Author-Name: Tugba Bas 
Author-X-Name-First: Tugba 
Author-X-Name-Last: Bas 
Author-Name: Orla Gough 
Author-X-Name-First: Orla 
Author-X-Name-Last: Gough 
Author-Name: Neeta Shah 
Author-X-Name-First: Neeta 
Author-X-Name-Last: Shah 
Author-Name: Stefan van Dellen 
Author-X-Name-First: Stefan 
Author-X-Name-Last: van Dellen 
Title: Do financial distress and liquidity crises affect value and size premiums? 
Abstract:
 This study investigates the impact of liquidity crises on the relationship
 between stock (value and size) premiums and default risk in the US market.
 It first examines whether financial distress can explain value and size
 premiums, and then, subsequently, aims to determine whether liquidity
 crises increase the risk of value and size premium investment strategies.
 The study employs a time-varying approach and a sample of US stock returns
 for the period between January 1982 and March 2011, a period which
 includes the current liquidity crisis, so as to examine the relationship
 between default risk, liquidity crises and value and size premiums. The
 findings indicate that the default premium has explanatory power for value
 and size premiums, which affect firms with different characteristics. We
 also find that liquidity crises may actually increase the risks related to
 size and value premium strategies.
Journal: Applied Economics 
Pages: 3734-3751 
Issue: 39 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1145345 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145345 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3734-3751




Template-Type: ReDIF-Article 1.0
Author-Name: Niklas Jakobsson 
Author-X-Name-First: Niklas 
Author-X-Name-Last: Jakobsson 
Author-Name: Mikael Svensson 
Author-X-Name-First: Mikael 
Author-X-Name-Last: Svensson 
Title: The effect of copayments on primary care utilization: results from a quasi-experiment 
Abstract:
 This article analyses how health-care utilization is affected by
 copayments in a tax-financed health-care system. The article utilizes a
 natural experiment in which a health-care region in Sweden changed the
 price of healthcare in such a way that primary care general physician
 prices increased by 33%. We use daily visit data in the treatment region
 and a neighbouring control region where no price change took place and
 analyse the effect using differences-in-differences as well as
 differences-in-differences-in-differences models. The results from the
 preferred models indicate no effect on health-care utilization due to the
 price change, a result that also holds across different socio-economic
 subregions in the treatment region.
Journal: Applied Economics 
Pages: 3752-3762 
Issue: 39 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1145346 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145346 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3752-3762




Template-Type: ReDIF-Article 1.0
Author-Name: Vipin Arora 
Author-X-Name-First: Vipin 
Author-X-Name-Last: Arora 
Author-Name: Shuping Shi 
Author-X-Name-First: Shuping 
Author-X-Name-Last: Shi 
Title: Energy consumption and economic growth in the United States 
Abstract:
 We study the relationship between energy consumption and real GDP in the
 USA using a multivariate time-varying model [1973Q1--2014Q1]. We show that
 the combination of disaggregation into specific fuels and time variation
 gives more nuanced results than the alternatives for the USA.
 Specifically, we find that the Granger causal relationship between total
 energy and real US GDP is bi-directional through much of the 1990s, but
 unidirectional running from real US GDP to energy consumption in the
 2000s. As for each fuel, similar patterns of change were observed in the
 causal relationship between coal consumption and real US GDP. Oil
 consumption largely shows a bi-directional relationship between
 consumption and US GDP, especially after 2009. And natural gas consumption
 shows a brief period in the early-to-mid 2000s where US GDP predicts
 energy consumption, but primarily shows that natural gas consumption and
 economic growth are independent.
Journal: Applied Economics 
Pages: 3763-3773 
Issue: 39 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1145347 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145347 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3763-3773




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden 
Author-X-Name-First: Gary 
Author-X-Name-Last: Madden 
Author-Name: Christian M. Dippon 
Author-X-Name-First: Christian M. 
Author-X-Name-Last: Dippon 
Author-Name: Hiroaki Suenaga 
Author-X-Name-First: Hiroaki 
Author-X-Name-Last: Suenaga 
Title: Do economic, institutional or political variables explain regulated wholesale unbundled local loop rate setting? 
Abstract:
 This study examines OECD fully unbundled and line-sharing monthly
 wholesale prices for 2002--2008. Although both series are well explained
 by the models, the principal contribution of the research is that
 economic, institutional and political factors explain mandated wholesale
 rate settings. The study finds evidence of both regulatory capture (to
 benefit incumbents) and retail margin setting to encourage entry (to
 benefit entrants).
Journal: Applied Economics 
Pages: 3774-3788 
Issue: 39 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1145348 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145348 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3774-3788




Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Jing Cai 
Author-X-Name-First: Xiao Jing 
Author-X-Name-Last: Cai 
Author-Name: Shuairu Tian 
Author-X-Name-First: Shuairu 
Author-X-Name-Last: Tian 
Author-Name: Shigeyuki Hamori 
Author-X-Name-First: Shigeyuki 
Author-X-Name-Last: Hamori 
Title: Dynamic correlation and equicorrelation analysis of global financial turmoil: evidence from emerging East Asian stock markets 
Abstract:
 This study investigates the dynamic conditional correlations (DCCs)
 between eight emerging East Asian stock markets and the US stock market
 and analyses the dynamic equicorrelation among these nine stock markets.
 We find a significant increase in the conditional correlations and
 equicorrelation in the first phase of the global financial crisis. We
 refer to this finding as contagion from the US stock market to the
 emerging East Asian markets. We also find an additional significant
 process of increasing correlations and equicorrelation (herding) in the
 second phase of the global financial crisis. Further, we employ two new
 models, namely DCCX-MGARCH (a DCC Multivariate GARCH model with exogenous
 variables) and DECOX-MGARCH (a dynamic equicorrelation multivariate GARCH
 model with exogenous variables), to identify the channels of contagion. We
 find that an increase in the VIX Index increases the conditional
 correlations and equicorrelation, while increases in TED spreads decrease
 the conditional correlations of six emerging East Asian countries with the
 USA. We compare the accuracy of the conditional correlation estimates of
 the DCC and DCCX models (or DECO and DECOX models) by constructing a loss
 function. We find that the DCCX (DECOX) model provides more accurate
 conditional correlation estimates than the DCC (DECO) model by extracting
 additional information from exogenous variables.
Journal: Applied Economics 
Pages: 3789-3803 
Issue: 40 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1145349 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145349 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3789-3803




Template-Type: ReDIF-Article 1.0
Author-Name: H. Qi 
Author-X-Name-First: H. 
Author-X-Name-Last: Qi 
Author-Name: Y. A. Xie 
Author-X-Name-First: Y. A. 
Author-X-Name-Last: Xie 
Title: Cost of capital: spot rate or forward rate? 
Abstract:
 In this study, we intend to reveal some problems with the classic
 valuation method -- the weighted average cost of capital (WACC) method. We
 first address a fundamental question about WACC, that is, should WACC be
 interpreted as a spot rate, a forward rate or any kind of average of
 either of them? We show that the nature of WACC is the expected forward
 rate. We next demonstrate that without understanding this nature, we may
 misinterpret the famous MM formula and MM Proposition II, as well as
 develop incorrect valuation framework. Our findings provide insightful
 implications to academia and practitioners for the proper interpretation
 and implementation of the WACC method.
Journal: Applied Economics 
Pages: 3804-3811 
Issue: 40 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1145350 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145350 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3804-3811




Template-Type: ReDIF-Article 1.0
Author-Name: Wankeun Oh 
Author-X-Name-First: Wankeun 
Author-X-Name-Last: Oh 
Author-Name: Eun G. Park 
Author-X-Name-First: Eun G. 
Author-X-Name-Last: Park 
Title: Adoption of digital repositories for CO<sub>2</sub> emissions reduction: the case of Korea 
Abstract:
 This study aims to estimate the potential economic benefits, energy and
 CO<sub>2</sub> emissions reductions when using trusted third-party digital
 repository (TTPR) services in one individual bank, and within the banking
 industry in Korea. First, the cost, benefit and net benefit of using TTPR
 services in the banking industry are estimated. Second, the net induced
 output effect is estimated. Third, based on an environmentally extended
 input--output analysis, CO<sub>2</sub> emissions reduction was estimated
 as 1924.32&#xa0;tons in 2009 and the energy consumption reduction as
 640.70&#xa0;TOE. Fourth, the total economic benefit, which is the sum of
 the net induced output effect and economic value of CO<sub>2</sub>
 emissions reductions, is approximately $11.04 million. The findings
 demonstrate that energy consumption and CO<sub>2</sub> emissions
 reductions are meaningful enough to result in significant economic
 benefits. Therefore, the Korean government should promote the use of TTPR
 services in the entire industry.
Journal: Applied Economics 
Pages: 3812-3825 
Issue: 40 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1145351 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145351 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3812-3825




Template-Type: ReDIF-Article 1.0
Author-Name: V&#xed;ctor M. Adame 
Author-X-Name-First: V&#xed;ctor M. 
Author-X-Name-Last: Adame 
Author-Name: Fernando Fern&#xe1;ndez-Rodr&#xed;guez 
Author-X-Name-First: Fernando 
Author-X-Name-Last: Fern&#xe1;ndez-Rodr&#xed;guez 
Author-Name: Simon Sosvilla-Rivero 
Author-X-Name-First: Simon 
Author-X-Name-Last: Sosvilla-Rivero 
Title: Portfolios in the Ibex 35 before and after the Global Financial Crisis 
Abstract:
 In this article, we present an analysis of the effectiveness of various
 portfolio optimization strategies applied to the stocks included in the
 Spanish Ibex 35 index, for a period of 14&#xa0;years, from 2001 until
 2014. The period under study includes episodes of volatility and
 instability in financial markets, incorporating the Global Financial
 Crisis and the European Sovereign Debt Crisis. This implies a challenge in
 portfolio optimization strategies since the methodologies are restricted
 to the assignment of positive weights. We have taken for asset allocation
 the daily returns with an estimation window equal to 1 year and we hold
 portfolio assets for another year. This article attempts to influence the
 discussion over whether the naive diversification proves to be an
 effective strategy as opposed to portfolio optimization models. For that,
 we evaluate the out-of-sample performance of 15 strategies for asset
 allocation in the Ibex 35, before and after of the Global Financial
 Crisis. Our results suggest that a large number of strategies outperform
 to the 1/N rule and to the Ibex 35 index in terms of return, Sharpe ratio
 and lower VaR and CVaR. The mean-variance portfolio of Markowitz with
 short-sale constraints is the only strategy that renders a Sharpe ratio
 statistically different from Ibex 35 index in the 2001--2007 and
 2008--2014 time periods.
Journal: Applied Economics 
Pages: 3826-3847 
Issue: 40 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1145352 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145352 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3826-3847




Template-Type: ReDIF-Article 1.0
Author-Name: Sofia Izquierdo Sanchez 
Author-X-Name-First: Sofia 
Author-X-Name-Last: Izquierdo Sanchez 
Author-Name: Caroline Elliott 
Author-X-Name-First: Caroline 
Author-X-Name-Last: Elliott 
Author-Name: Robert Simmons 
Author-X-Name-First: Robert 
Author-X-Name-Last: Simmons 
Title: Substitution between leisure activities: a quasi-natural experiment using sports viewing and cinema attendance 
Abstract:
 The allocation of time between leisure activities and work has been
 extensively analysed in academic literature. However, leisure time is
 limited and there may not be sufficient time to enjoy all the leisure
 activities desired. Hence, this article considers the allocation of time
 between substitute leisure activities. International football tournaments
 provide an opportunity to consider consumers&#x2019; preferences for
 watching football and films in a quasi-natural experimental setting. A
 trade-off between these leisure activities is identified using a
 difference-in-difference methodology. Using an original, four-country data
 set, a large and robust negative effect of mega sports events on cinema
 admissions is identified.
Journal: Applied Economics 
Pages: 3848-3860 
Issue: 40 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1145353 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145353 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3848-3860




Template-Type: ReDIF-Article 1.0
Author-Name: L&#xe9;onard Moulin 
Author-X-Name-First: L&#xe9;onard 
Author-X-Name-Last: Moulin 
Author-Name: David Flacher 
Author-X-Name-First: David 
Author-X-Name-Last: Flacher 
Author-Name: Hugo Harari-Kermadec 
Author-X-Name-First: Hugo 
Author-X-Name-Last: Harari-Kermadec 
Title: Tuition fees and social segregation: lessons from a natural experiment at the University of Paris 9-Dauphine 
Abstract:
 Using a natural experiment, a sharp rise in tuition fees in some of the
 programmes at the University of Paris 9-Dauphine, we study the impact of
 tuition fees on students&#x2019; pathways, and outcomes. We apply an
 optimal matching method to the national database of students&#x2019;
 registrations (SISE) to define a typology of pathways. We then use a
 nonordered multinomial logit model to evaluate the impact of the rise in
 tuition fees on the types of pathways selected by the university. We show
 that there is a significant impact on these pathways. The increase in
 tuition fees reduces geographic and social mobility, thereby accentuating
 the phenomena of social segregation. Furthermore, contrary to what some of
 the studies assert, the rise does not appear to encourage greater effort:
 we find no impact on the graduation success rate.
Journal: Applied Economics 
Pages: 3861-3876 
Issue: 40 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1148253 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148253 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3861-3876




Template-Type: ReDIF-Article 1.0
Author-Name: F. Traor&#xe9; 
Author-X-Name-First: F. 
Author-X-Name-Last: Traor&#xe9; 
Author-Name: F. Badolo 
Author-X-Name-First: F. 
Author-X-Name-Last: Badolo 
Title: On the co-movement between coffee and cocoa prices in international markets 
Abstract:
 In this article, we study the movement between cocoa and coffee prices,
 two close substitute commodities. Using the ARDL approach developed by
 Pesaran et al. (2001), we found that the two prices are cointegrated. The
 long-run elasticity of coffee price with respect to the cocoa one is
 estimated at 0.88. Also, using the lag-augmented VAR approach of Toda and
 Yamamoto (1995), which is valid whatever the order of integration of the
 data, the cocoa price is found to granger cause the coffee price and not
 vice versa. This finding suggests that models aiming at forecasting coffee
 prices should incorporate cocoa prices as well.
Journal: Applied Economics 
Pages: 3877-3886 
Issue: 40 
Volume: 48 
Year: 2016 
Month: 8 
X-DOI: 10.1080/00036846.2016.1148254 
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148254 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3877-3886




Template-Type: ReDIF-Article 1.0
Author-Name: Léa Bouhakkou
Author-X-Name-First: Léa
Author-X-Name-Last: Bouhakkou
Author-Name: Alain Coën
Author-X-Name-First: Alain
Author-X-Name-Last: Coën
Author-Name: Didier Folus
Author-X-Name-First: Didier
Author-X-Name-Last: Folus
Title: A portfolio approach to the optimal mix of funded and unfunded pensions
Abstract: 
 In this paper, we address the optimal funding of pensions by means of portfolio choice approach. Considering the unfunded (Paygo) pension system as a ‘quasi-asset’ with hedging and diversification properties, we derive the optimal portfolio mix of funded and Paygo systems within a mean variance and Bell linear exponential models. Our analysis involves both analytical computations and empirical estimations of optimal values using real long-term data for equity, bonds and the Paygo asset for several OECD countries and several time periods covering the time span 1897–2016. We find that in most cases a mix of both systems is desirable with a larger magnitude of Paygo system in the case of the Bell framework as we capture attitudes towards asymmetry and tail risks that are typical to equity markets.
Journal: Applied Economics
Pages: 1733-1744
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678728
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678728
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1733-1744




Template-Type: ReDIF-Article 1.0
Author-Name: Iordanis Angelos Kalaitzoglou
Author-X-Name-First: Iordanis Angelos
Author-X-Name-Last: Kalaitzoglou
Author-Name: Boulis Maher Ibrahim
Author-X-Name-First: Boulis Maher
Author-X-Name-Last: Ibrahim
Title: OTC trades and liquidity in the European carbon market more than meets the eye
Abstract: 
 This study investigates whether the previously reported price impact of OTC trades in the EU ETS can be attributed to their distinctively larger size (liquidity related) or to their discretionary feature (information related). The findings suggest that OTC trades induce volatility shocks that are higher in magnitude and faster resolved than those of solely high trading-intensity trades, which appears to be driven mainly by their presence, rather than by their size. An analysis of intraday price premia reveals that they are strategically placed by interacting with the organized market whenever their price and volatility impact is lower.
Journal: Applied Economics
Pages: 1745-1762
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678729
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678729
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1745-1762




Template-Type: ReDIF-Article 1.0
Author-Name: TsingZai C. Wu
Author-X-Name-First: TsingZai C.
Author-X-Name-Last: Wu
Author-Name: Chaur-Shiuh Young
Author-X-Name-First: Chaur-Shiuh
Author-X-Name-Last: Young
Author-Name: Chun-Chan Yu
Author-X-Name-First: Chun-Chan
Author-X-Name-Last: Yu
Author-Name: Hsiao-Tang Hsu
Author-X-Name-First: Hsiao-Tang
Author-X-Name-Last: Hsu
Title: Are governmental expenditures also sticky? Evidence from the operating expenditures of public schools
Abstract: 
 Existing research on cost stickiness focuses primarily on for-profit companies. This study investigates cost behaviour in the public sector, a new setting that deserves more research attention. Using unique data from public schools in Taiwan, we find that operating expenditures of public schools are sticky. Moreover, the stickiness is more prominent for schools whose principals facing higher enrolment pressure. These results support the public choice theory, suggesting that bureaucratic power may serve as a key driver leading to a sticky cost behaviour for governmental organizations. The government auditors and congressional representatives monitoring governmental budgets should thus notice that bureaucrats might keep the level of expenditures just for their self-interests when demand declines, a manifestation of distortion in allocation of social resources.
Journal: Applied Economics
Pages: 1763-1776
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678731
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678731
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1763-1776




Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Vijaya Bhaskar Marisetty
Author-X-Name-First: Vijaya Bhaskar
Author-X-Name-Last: Marisetty
Title: Financial inclusion and poverty: a tale of forty-five thousand households
Abstract: 
 Using a new nationally representative survey data covering approximately 45,000 Indian households, we examine the effects of financial inclusion on poverty. We construct a multidimensional indicator of financial inclusion and examine the effects of financial inclusion on multiple measures of poverty including the household Poverty Probability Index (PPI), household deprivation scores, and poverty line. We find that financial inclusion has a strong poverty-reducing effect. This finding is consistent across the different measures of poverty used, and alternative ways of measures financial inclusion. These results underpin the importance of financial inclusion and the need for its promotion across countries.
Journal: Applied Economics
Pages: 1777-1788
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678732
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678732
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1777-1788




Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Mugabe
Author-X-Name-First: Douglas
Author-X-Name-Last: Mugabe
Author-Name: Levan Elbakidze
Author-X-Name-First: Levan
Author-X-Name-Last: Elbakidze
Author-Name: Gulnara Zaynutdinova
Author-X-Name-First: Gulnara
Author-X-Name-Last: Zaynutdinova
Title: Elasticity of substitution and technical efficiency: evidence from the US electricity generation
Abstract: 
 The implications of national or regional energy policies for technical efficiency and environmental outcomes in electricity generation depend on fossil fuel input substitution. This study uses state level data to examine fossil fuel (coal and natural gas) substitution in electricity generation under increased availability of natural gas in the United States. We observe that changes in elasticities of substitution from pre-2009 to post-2009 differ across states suggesting that the effects of increased availability of inexpensive natural gas on electricity generation have been spatially heterogeneous. We rely on the observed heterogeneity to assess the effects of fossil fuel input substitution on technical efficiency and CO2 emissions. The results reveal that state level elasticity of substitution between natural gas and coal has a positive effect on technical efficiency and a negative effect on CO2 emissions. Therefore, future policy design and analyses should reflect the implications for regional elasticities of fossil fuel substitution and associated environmental outcomes.
Journal: Applied Economics
Pages: 1789-1805
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678733
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678733
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1789-1805




Template-Type: ReDIF-Article 1.0
Author-Name: Marija Petrović-Ranđelović
Author-X-Name-First: Marija
Author-X-Name-Last: Petrović-Ranđelović
Author-Name: Petar Mitić
Author-X-Name-First: Petar
Author-X-Name-Last: Mitić
Author-Name: Aleksandar Zdravković
Author-X-Name-First: Aleksandar
Author-X-Name-Last: Zdravković
Author-Name: Dušan Cvetanović
Author-X-Name-First: Dušan
Author-X-Name-Last: Cvetanović
Author-Name: Slobodan Cvetanović
Author-X-Name-First: Slobodan
Author-X-Name-Last: Cvetanović
Title: Economic growth and carbon emissions: evidence from CIVETS countries
Abstract: 
 This paper examines whether a long-run relationship exists between CO2 emissions and selected variables: real gross domestic product per capita, inward stock of foreign direct investments, gross fixed capital formation, industry, value added and energy use per capita for Colombia, Indonesia, Viet Nam, Egypt, Turkey and South Africa countries in the period of 1989–2016. We used panel unit root testing, followed by panel cointegration tests and panel causality. The results clearly prove the existence of a bidirectional long-run causal relationship between all the variables except between CO2 emissions and GDP and CO2 emissions and GFCF. Major finding of the short-run causality analysis is that CO2 emission in the short run does not result in changes of other variables. On the other hand, all variables except foreign direct investments (FDI) cause the changes in the CO2 emissions, and there is a positive bidirectional causal relationship between GDP and FDI, between GFCF and FDI, and between GFCF and IVA. Finally, positive unidirectional causal relationship also exists, running from GDP to IVA, GDP to ENUSE, IVA to FDI and ENUSE to FDI.
Journal: Applied Economics
Pages: 1806-1815
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679343
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679343
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1806-1815




Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Samuelson Appau
Author-X-Name-First: Samuelson
Author-X-Name-Last: Appau
Title: Microfinance in Latin America and the Caribbean: the curse and blessing of ethnic diversity
Abstract: 
 Latin America is one of the most ethnically diverse regions in the world, and is also characterized by high levels of poverty. As a poverty alleviation tool, microfinance emerged in the region and has significantly evolved over the years. However, the implications of the region’s high diversity on the performance of microfinance institutions (MFIs) are however not known. We attempt to fill this gap by providing evidence on the association between MFI performance and indices of ethnic and linguistic fractionalization. Our findings suggest that fractionalization promotes MFI financial performance but is detrimental to outreach depth. These results are robust to various sensitivity tests.
Journal: Applied Economics
Pages: 1816-1830
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679344
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679344
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1816-1830




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Bolli
Author-X-Name-First: Thomas
Author-X-Name-Last: Bolli
Author-Name: Florian Seliger
Author-X-Name-First: Florian
Author-X-Name-Last: Seliger
Author-Name: Martin Woerter
Author-X-Name-First: Martin
Author-X-Name-Last: Woerter
Title: Technological diversity, uncertainty and innovation performance
Abstract: 
 We analyse the impact of technological diversity on innovation performance in the discovery stage, measured by R&D intensity and patent applications, and in the commercialization stage, measured by the sales share generated by innovations, using Swiss firm-level data. While we do not find any impact of diversity on R&D intensity, we confirm a positive impact of diversity on patent applications as suggested by literature. Extending the analysis to the commercialization stage reveals that technological diversity decreases the share of sales generated by innovative products. We argue that this pattern emerges because knowledge spillovers matter relatively more in the discovery stage while coordination costs matter relatively more in the commercialization stage. Technological uncertainty further increases coordination costs (in both stages) and thus negatively moderates the effect of diversity on innovation performance.
Journal: Applied Economics
Pages: 1831-1844
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679345
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679345
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1831-1844




Template-Type: ReDIF-Article 1.0
Author-Name: Ashwin Madhou
Author-X-Name-First: Ashwin
Author-X-Name-Last: Madhou
Author-Name: Tayushma Sewak
Author-X-Name-First: Tayushma
Author-X-Name-Last: Sewak
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Title: Forecasting the GDP of a small open developing economy: an application of FAVAR models
Abstract: 
 GDP forecasting remains a challenge for a small open developing economy. Faced with insufficient and low-frequency data, central bank forecasters cannot project GDP reliably for the purpose of monetary policy decision-making. An attempt is made to forecast GDP using a factor-augmented vector autoregressive (FAVAR) model for a small open developing economy. The forecasting accuracy of the FAVAR model is examined through sequential forecasts and benchmarked against a Bayesian vector autoregressive (BVAR) model. The main finding of this study is that a FAVAR model can generate consistent GDP projections for a small open developing economy despite data inadequacy.
Journal: Applied Economics
Pages: 1845-1856
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679346
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679346
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1845-1856




Template-Type: ReDIF-Article 1.0
Author-Name: Rozina Shaheen
Author-X-Name-First: Rozina
Author-X-Name-Last: Shaheen
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: Fiscal multipliers and the level of economic activity: a structural threshold VAR model for the UK
Abstract: 
 This article examines the impact of fiscal policy shocks in the UK economy using a nonlinear structural threshold vector autoregression (TVAR) model which links Gross Domestic Product (GDP), government expenditure and tax receipts. The model is structural in the sense that the contemporaneous linkages between the variables are determined by economic theory and by our assumptions about the institutional structure of the tax and transfer system. This structure is also influenced by the state of the economy as measured by the deviation of GDP from the Hodrick-Prescott trend. We find that the state of the economy is important, with fiscal policy having very different multiplier effects during ‘boom’ periods relative to ‘normal’ periods. However, we find low values for the government expenditure multiplier in all regimes.
Journal: Applied Economics
Pages: 1857-1865
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679347
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679347
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1857-1865




Template-Type: ReDIF-Article 1.0
Author-Name: Zhuo Huang
Author-X-Name-First: Zhuo
Author-X-Name-Last: Huang
Author-Name: Chen Tong
Author-X-Name-First: Chen
Author-X-Name-Last: Tong
Author-Name: Tianyi Wang
Author-X-Name-First: Tianyi
Author-X-Name-Last: Wang
Title: Which volatility model for option valuation in China? Empirical evidence from SSE 50 ETF options
Abstract: 
 In early 2015, China launched its first exchange-traded option, the Shanghai Stock Exchange (SSE) 50 ETF option, to meet the increasing demand for financial derivatives. In this article, we provide an intensive empirical investigation of popular discrete-time volatility models in terms of their pricing performance when applied to SSE 50 ETF options. We find that the newly developed models with realized measures significantly outperform conventional GARCH-type models based on daily returns only. In contrast with the U.S. market, our empirical results suggest that the leverage effect is very weak in the Chinese option market.
Journal: Applied Economics
Pages: 1866-1880
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679348
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679348
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1866-1880




Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Author-Name: Vicente Cardoso
Author-X-Name-First: Vicente
Author-X-Name-Last: Cardoso
Title: Labour market participation in Brazil: a discrete game approach
Abstract: 
 The article aims at investigating labour market participation of couples in Brazil in 2013. The observed endogenous variables portraying participation are assumed to be the outcome of a static discrete game between the partners. Different solution concepts are considered (Nash, Stackelberg and imposed Pareto optimality). The evidence, in comparison with previous evidence for more developed and homogeneous countries, display qualitative similarities in terms of own wage, cross wage and age effects and a stronger inhibiting role of the number of small children in the case of the female partner. In particular, cross-wage effects also indicated gender-asymmetry. Additionally, one identifies a slightly better fit in the case of the Stackelberg male leader model that could be suggestive in terms of the relevance of cultural aspects on labour market participation, but the differences among the different models are not striking.
Journal: Applied Economics
Pages: 1881-1890
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1680792
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1680792
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1881-1890




Template-Type: ReDIF-Article 1.0
Author-Name: Kit Pasula
Author-X-Name-First: Kit
Author-X-Name-Last: Pasula
Title: Reserve flows and monetary autonomy under a fixed exchange rate: the British experience under Bretton Woods
Abstract: 
 This paper uses a stochastic intertemporal model to analyse reserve flows and monetary autonomy under a fixed exchange rate, and applies the model to a study of the British experience under Bretton Woods. Even if international capital mobility is imperfect, monetary autonomy may be negligible in the model. The reduced form for reserve flows is estimated, generating an estimate of the offset coefficient. The results are consistent with the hypothesis that the Bank of England had zero monetary independence. While these results conflict with the prevailing view in the literature, they are consistent with some results in other recent studies using different approaches.
Journal: Applied Economics
Pages: 1891-1904
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1680793
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1680793
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1891-1904




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Gradín
Author-X-Name-First: Carlos
Author-X-Name-Last: Gradín
Title: Segregation of women into low-paying occupations in the United States
Abstract: 
 We extend the conventional framework for measuring segregation to consider the stratification of occupations by gender, i.e. when either women or men are predominantly segregated into low-paying jobs. We propose the use of the concentration curve to analyse first-order stochastic dominance, and concentration indices to obtain complete orderings and to quantify the phenomenon. With this approach, well-rooted in the literature of economic inequality, we show that the decline in gender segregation of occupations in the US over time was accompanied by a deeper and longer reduction in their stratification. The distinctive characteristics of men and women cannot account for segregation or stratification levels. The profound changes in the composition of the workforce over time by education or marital status, however, did help to substantially explain their trends. The level of stratification was farther reduced by gender-biased changes in the earnings structure, while changes in conditional occupational distributions only contributed to these declines before 1990.
Journal: Applied Economics
Pages: 1905-1920
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682113
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682113
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1905-1920




Template-Type: ReDIF-Article 1.0
Author-Name: Abdullahi D. Ahmed
Author-X-Name-First: Abdullahi D.
Author-X-Name-Last: Ahmed
Author-Name: Rui Huo
Author-X-Name-First: Rui
Author-X-Name-Last: Huo
Title: Linkages among energy price, exchange rates and stock markets: Evidence from emerging African economies
Abstract: 
 This study examines the dynamic links among oil prices, foreign exchange rates and stock markets in emerging Africa using recent 10 years data and VAR-BEKK-GARCH forecasting framework. We find evidence of significant return and volatility interactions in oil return, exchange rates and stock markets. The non-existence of long-term cointegration equilibrium implies potential diversification benefit in the long run. Autoregressive characteristics for most African foreign currencies and stock markets indicate markets’ own predictability. We see that high oil return leads to an appreciation of Botswana pula, Nigerian dollar and Zambian kwacha, depreciation of Egyptian pound and boost the stock markets of Egypt, Kenya, Nigeria and Tunisia. From the conditional variance equation, we observe significant statistical evidence of local spillover effects from oil to financial markets. Strong bi-directional shock and volatility spillovers between oil and most African exchange rates are reported. Significant shock and volatility spillovers between oil and stock markets are found in some of the African countries. We conduct portfolio optimization analyses as part of the financial risk management and risk mitigation strategies. Policy wise, leaders should promote the development of financial derivative instruments since foreign exchange rates are used as a tool to absorb oil and other external shocks.
Journal: Applied Economics
Pages: 1921-1935
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1726861
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726861
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1921-1935




Template-Type: ReDIF-Article 1.0
Author-Name: Ozcan Ozturk
Author-X-Name-First: Ozcan
Author-X-Name-Last: Ozturk
Title: Market integration and spatial price transmission in grain markets of Turkey
Abstract: 
 This paper examines whether the grain market of Turkey is cointegrated with the world grain market. Using an error correction model, we analyse the response of producer prices of wheat, barley, maize, soybean and rice to changes in world market prices. Results show that the rice market of Turkey is not cointegrated with the world rice market, while the other commodity markets are weakly cointegrated. Results also show that pass-through of changes in the world prices to the domestic prices is relatively low both in the short run and in the long run, and that adjustment to the new equilibrium following a shock is slow. Government intervention policies both at the border and as domestic price supports seem to be underlying causes of the weak cointegration. Fewer protectionist policies and lower levels of government intervention are necessary to increase the domestic grain market integration with the international grain market.
Journal: Applied Economics
Pages: 1936-1948
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1726862
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726862
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1936-1948




Template-Type: ReDIF-Article 1.0
Author-Name: Mojmir Hampl
Author-X-Name-First: Mojmir
Author-X-Name-Last: Hampl
Author-Name: Tomas Havranek
Author-X-Name-First: Tomas
Author-X-Name-Last: Havranek
Author-Name: Zuzana Irsova
Author-X-Name-First: Zuzana
Author-X-Name-Last: Irsova
Title: Foreign capital and domestic productivity in the Czech Republic: a meta-regression analysis
Abstract: 
 We provide a quantitative synthesis of the literature studying the effect of foreign direct investment (FDI) on the productivity of locally owned firms in the Czech Republic. To this end, we collect 332 previously reported estimates and use Bayesian model averaging to address model uncertainty. We find no evidence of publication bias, i.e. no sign of selective reporting of estimates that are statistically significant and show an intuitive sign. Our results suggest that more advanced techniques yield substantially larger positive effects (FDI spillovers). When placing more weight on estimates that solve important identification problems in the literature (such as using data on existing linkages between firms instead of approximations based on input-output tables), we find that, as of 2018, a 10-percentage-point increase in foreign presence is likely to lift the productivity of domestic firms by 11%. The effect is even larger for joint ventures, reaching 19%.
Journal: Applied Economics
Pages: 1949-1958
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1726864
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726864
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1949-1958




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Gearhart
Author-X-Name-First: Richard
Author-X-Name-Last: Gearhart
Author-Name: Nyakundi Michieka
Author-X-Name-First: Nyakundi
Author-X-Name-Last: Michieka
Title: Efficiency of American states after implementation of the patient protection and affordable care act (PPACA) from 2014 to 2017
Abstract: 
 We assess the impact of healthcare efficiency among U.S. states after implementation of the PPACA. A Malmquist Index decomposes productivity changes of state healthcare systems since 2014. Results indicate productivity regression of 0.14-percentage points from 2014 to 2017. In 2017 the average state is 4.9-percentage points inefficient. Using the conditional order-m estimator and nonparametrically regressing the ratio of conditional to unconditional order-m efficiency scores on secondary environmental variables, we find that behavioural, socioeconomic, and healthcare utilization factors play a role in explaining state inefficiency. The average state becomes nearly fully efficient after controlling for behaviour (efficiency improves by 3.7-percentage points), socioeconomic (4.1-percentage points), and healthcare utilization (3.2-percentage points) variables. Using a second-stage regression framework, we find that higher levels of obesity, adult smoking, and diabetes lead to lower healthcare efficiency. Likewise, we see that low and high levels of unemployment are associated with improved healthcare efficiency, which is in line with contradictory studies. We also find further support for the link between income and health outcomes, through the vehicle of improved health efficiency. Lastly, we find that ensuring that low-cost populations engaging in health treatments have improved health outcomes, as they prevent high-cost morbidities in the future.
Journal: Applied Economics
Pages: 1959-1972
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1730758
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730758
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1959-1972




Template-Type: ReDIF-Article 1.0
Author-Name: Richard C. K. Burdekin
Author-X-Name-First: Richard C. K.
Author-X-Name-Last: Burdekin
Author-Name: Ran Tao
Author-X-Name-First: Ran
Author-X-Name-Last: Tao
Title: Chinese liquidity effects on the Australian macroeconomy, 2002–2017
Abstract: 
 China’s growing importance to the Australian economy has been well recognized in policy circles but remained relatively untested in formal empirical analysis. This paper examines the reactions of Australian macroeconomic variables to Chinese money growth and inflation over the post-2002 period using VAR estimation, historical decompositions and long-run cointegration models. The consistent impact of Chinese money growth on Australian inflation and on the exchange rate seen in the VAR analysis is supplemented by evidence of cointegrating relationships between the Australian variables and both Chinese money growth and Chinese inflation.
Journal: Applied Economics
Pages: 1973-1985
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1730759
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730759
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1973-1985




Template-Type: ReDIF-Article 1.0
Author-Name: Shuhei Kaneko
Author-X-Name-First: Shuhei
Author-X-Name-Last: Kaneko
Author-Name: Haruko Noguchi
Author-X-Name-First: Haruko
Author-X-Name-Last: Noguchi
Title: Does traditional price policy work for achieving low smoking rate? –Empirical and theoretical evaluation based on the United States aggregate data
Abstract: 
 In the United States, smoking has been strictly restricted by both federal and state governments. Almost all the policies have imposed high tax on cigarettes for decreasing the number of smokers. In fact, the smoking rate has fallen in the past few decades among the population. The main objective of this study is to evaluate whether the ‘traditional’ policy still remains effective by applying the dynamic panel strategy to state-level aggregated data in the United States. Our result shows that the remaining smokers up to today are less sensitive to the price hikes than past smokers and that they are likely to ‘attenuate’ the cost of smoking by stockpiling in advance of the policy enactment when they expect the increase of future price. The empirical results suggest that an increase in the cost may no longer be so valid as it was in past decades.
Journal: Applied Economics
Pages: 1986-1997
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1728226
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1728226
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1986-1997




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Scicchitano
Author-X-Name-First: Sergio
Author-X-Name-Last: Scicchitano
Author-Name: Marco Biagetti
Author-X-Name-First: Marco
Author-X-Name-Last: Biagetti
Author-Name: Antonio Chirumbolo
Author-X-Name-First: Antonio
Author-X-Name-Last: Chirumbolo
Title: More insecure and less paid? The effect of perceived job insecurity on wage distribution
Abstract: 
 This article employs a Counterfactual Decomposition Analysis (CDA) using both a semi-parametric and a non-parametric method to examine the pay gap due to perceived job insecurity over the entire wage distribution of dependent workforce in Italy. Using the 2015 INAPP Survey on Quality of Work, our results exhibit a mirror J-shaped pattern in the pay gap between secure and insecure workers, with a significant sticky floor effect, i.e. a greater effect of job insecurity at the lowest quantiles. This pattern is mainly due to the characteristics effect, while the relative incidence of the coefficient component accounts roughly for 22% up to 36% of the total difference, being more relevant at the bottom of the wage distribution.
Journal: Applied Economics
Pages: 1998-2013
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1734526
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1734526
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1998-2013




Template-Type: ReDIF-Article 1.0
Author-Name: Kadija Charni
Author-X-Name-First: Kadija
Author-X-Name-Last: Charni
Title: Do the French pension reforms increase re-employment of older unemployed workers?
Abstract: 
 The sustainability of Social Security financing has pushed authorities to reform their policy to increase the labour market participation of older workers. While most of the studies have focused on the consequences of pension reform on retirement decisions, we analyse the effects of two French pension reforms, which increased the period of contribution and the minimum retirement age, on transitions out of unemployment and into employment with a difference-in-differences approach. We find that both retirement reforms have positive effects on the re-employment of older unemployed workers. The pension reforms are also accompanied by an increase of the transitions into inactivity. The results suggest that the reforms have delivered significant effects by reducing the unemployment of older workers.
Journal: Applied Economics
Pages: 2015-2043
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682114
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682114
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2015-2043




Template-Type: ReDIF-Article 1.0
Author-Name: Bo Zhang
Author-X-Name-First: Bo
Author-X-Name-Last: Zhang
Author-Name: Wei Dai
Author-X-Name-First: Wei
Author-X-Name-Last: Dai
Author-Name: Mark Weder
Author-X-Name-First: Mark
Author-X-Name-Last: Weder
Title: A Bayesian evaluation of an efficiency-wage model with indeterminacy
Abstract: 
 This paper provides a quantitative assessment of a general equilibrium economy with non-Walrasian labour markets. Indeterminacy in the economy does not require production externalities or increasing returns but it rests on replacing the labour supply curve by a no-shirking condition on the efficiency-wage labour markets. The model is estimated on U.S. data via full information Bayesian methods. The shirking model is capable of matching several stylized facts of the aggregate economy and the labour market. Data favour a version of the artificial economy that is characterized by determinacy.
Journal: Applied Economics
Pages: 2044-2055
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682115
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682115
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2044-2055




Template-Type: ReDIF-Article 1.0
Author-Name: Haoqi Qian
Author-X-Name-First: Haoqi
Author-X-Name-Last: Qian
Author-Name: Libo Wu
Author-X-Name-First: Libo
Author-X-Name-Last: Wu
Title: Avoiding Mis-estimation of the CES Function: Unit Matters
Abstract: 
 We demonstrate that unit errors of measurement will lead to significant biases in estimating the constant elasticity of substitution (CES) function. Monte-Carlo simulations show that estimation results tend to reach Cobb–Douglas (CD) functions or extreme values if units of input variables are incorrectly used. To avoid this problem, we suggest adding an overall efficiency parameter and a unit correction parameter which is similar to biased technological change parameter when estimating CES functions. Any unit error of measurement can be captured by these two parameters while allowing researchers to get unbiased estimation results of other parameters.
Journal: Applied Economics
Pages: 2056-2062
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682116
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682116
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2056-2062




Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Li
Author-X-Name-First: Xuelian
Author-X-Name-Last: Li
Author-Name: Jianming Dong
Author-X-Name-First: Jianming
Author-X-Name-Last: Dong
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: Life insurer performance under the bailout of distressed asset purchases
Abstract: 
 The paper develops a structure-break contingent claim model to examine how government bailout affects a life insurer’s performance (policyholder protection and insurer survival). The distressed assets purchased by the government enhance the optimal insurer interest margin, and policyholder protection. Bailout as such helps the life insurer, implying a higher likelihood of survival in particular when a financial crisis deteriorates seriously, thereby contributing to the stability of the insurance system. In addition, we suggest that low participation of the profit-sharing policy increases insurer survival. This strategic participation effect becomes more significant when the economic state of structural break volatility is increased, and thus, enhancing insurer survival and solving financial problems.
Journal: Applied Economics
Pages: 2063-2078
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682117
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682117
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2063-2078




Template-Type: ReDIF-Article 1.0
Author-Name: Damiano Fiorillo
Author-X-Name-First: Damiano
Author-X-Name-Last: Fiorillo
Author-Name: Giuseppe Lubrano Lavadera
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Lubrano Lavadera
Author-Name: Nunzia Nappo
Author-X-Name-First: Nunzia
Author-X-Name-Last: Nappo
Title: Structural social capital and mental health: a panel study
Abstract: 
 The link between social relations and psychological wellbeing is well established in sociological and mental health studies. Since the beginning of the 2000s, this link has been garnering new attention and interest in economic and public health studies. Almost twenty years of empirical studies testing this relationship have established contrasting results for two main reasons. First, the majority of the studies are based on cross-sectional data, leaving out endogeneity and heterogeneity problems; second, mental health measurements are often discordant from each other. This study investigates the relationship between structural social capital and individual self-rated mental health using five waves of the British Household Panel Survey from 1991 to 1995 (unbalanced panel N = 44,684). We take into account the heterogeneity and endogeneity issues and implement fixed effects and lag-dependent variable estimations. Moreover, we used different methodologies to measure mental health as a robustness check. Our findings show the existence of a negative relationship between being both a member of and active in an organization and worse mental health. In addition, being active within an organization in the previous year has a negative effect on worse mental health in the following year.
Journal: Applied Economics
Pages: 2079-2095
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682508
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682508
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2079-2095




Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Fernández-Rodríguez
Author-X-Name-First: Fernando
Author-X-Name-Last: Fernández-Rodríguez
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Title: Volatility transmission between stock and foreign exchange markets: a connectedness analysis
Abstract: 
 This paper empirically investigates volatility transmission among stock and foreign exchange markets in seven major world economies during the period July 1988 to May 2018. To this end, we first perform a static and dynamic analysis to measure the total volatility connectedness in the entire period (the system-wide approach). Second, we make use of a dynamic analysis to evaluate the net directional connectedness for each market. To gain further insights, we examine the time-varying behaviour of net pair-wise directional connectedness during the financial turmoil periods experienced in the sample period Our results suggest that slightly more than half of the total variance of the forecast errors is explained by shocks across markets rather than by idiosyncratic shocks. Furthermore, we find that volatility connectedness varies over time, with a surge during periods of increasing economic and financial instability.
Journal: Applied Economics
Pages: 2096-2108
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683143
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683143
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2096-2108




Template-Type: ReDIF-Article 1.0
Author-Name: Tom Pierse
Author-X-Name-First: Tom
Author-X-Name-Last: Pierse
Author-Name: John McHale
Author-X-Name-First: John
Author-X-Name-Last: McHale
Title: Unemployment durations and local labour market conditions
Abstract: 
 Unemployment durations vary across local authority districts in the UK. We explore the extent to which this variation is explained by differences in local labour demand as opposed to composition, business cycle and regional effects. We use seventeen waves of the British Household Panel Survey to identify the determinants of the duration of unemployment spells. Once we adjust for individual-level, business cycle and regional controls, we do not find evidence that living in a local authority district with relatively high unemployment is associated with longer spells of unemployment. This indicates that differences in labour demand operate at larger geographic scales, such as between large regions. Our findings have implications for the design of policies to help high unemployment districts.
Journal: Applied Economics
Pages: 2109-2122
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683144
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683144
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2109-2122




Template-Type: ReDIF-Article 1.0
Author-Name: Ashwin Madhou
Author-X-Name-First: Ashwin
Author-X-Name-Last: Madhou
Author-Name: Tayushma Sewak
Author-X-Name-First: Tayushma
Author-X-Name-Last: Sewak
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Title: Forecasting inflation in a small open developing economy
Abstract: 
 The transition to a model-based forecasting environment is encountered by hurdles in a small open developing economy. An attempt is made to validate the benefits of model-based inflation forecasting for central banks in small open developing economies. Despite data limitations, two distinct VARs are designed to project near-term inflation. Batteries of tests (such as sequential forecasts, out-of-sample forecasting errors, equal-weight forecasting errors and decomposition) are performed on the two models to assess their predictive ability. The main finding is that model-based forecasts are reliable for use by central banks in small open developing economies, as substantiated by the relatively low forecasting errors.
Journal: Applied Economics
Pages: 2123-2134
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683145
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683145
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2123-2134




Template-Type: ReDIF-Article 1.0
Author-Name: Leiju Qiu
Author-X-Name-First: Leiju
Author-X-Name-Last: Qiu
Author-Name: Dongmei Guo
Author-X-Name-First: Dongmei
Author-X-Name-Last: Guo
Author-Name: Xuankai Zhao
Author-X-Name-First: Xuankai
Author-X-Name-Last: Zhao
Author-Name: Wenzhan Zhang
Author-X-Name-First: Wenzhan
Author-X-Name-Last: Zhang
Title: The value of school in urban China: a spatial quantile regression with housing transactions in Beijing
Abstract: 
 This study adopts microdata of individual housing transactions in Beijing to explore the value that households place on high-quality schools. It is among the first to match exactly the housing unit with its corresponding school in studies on Chinese housing markets. We find a significant school premium of 21.1% in Beijing’s housing market after controlling the unobservable neighbourhood effects using regressions with a spatial lag. We have further discovered different school premiums across quantiles with a spatial quantile regression. The result finding a larger school premium in the lower-priced housing units suggests that low-income households prefer high-quality schools over housing consumption. Our results indicate that public education influences households’ residential location choice and housing consumption decisions, which thus have important policy implications in public goods provision, housing development and urban planning.
Journal: Applied Economics
Pages: 2135-2146
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683146
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683146
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2135-2146




Template-Type: ReDIF-Article 1.0
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Caoyuan Ma
Author-X-Name-First: Caoyuan
Author-X-Name-Last: Ma
Author-Name: Hongyan Geng
Author-X-Name-First: Hongyan
Author-X-Name-Last: Geng
Title: The effects of business models on bank risk before, during and after financial crisis: evidence from China
Abstract: 
 Using Chinese data from 2004 to 2016, we investigate the effects of business models on bank risk before, during and after financial crisis. Three main results emerge. First, insolvency risk and ROA volatility significantly increase if banks increase their share of non-interest income, and this relationship mainly appears during and after financial crisis. Second, a higher non-deposit funding share results in lower capital risk and credit risk and higher asset quality. However, these effects disappear after financial crisis. Finally, further analyses show that the effects of non-interest income on bank risk are mainly from assets-based non-interest income, and the effects of non-deposit funding on bank risk come primarily from money-market and short-term funding.
Journal: Applied Economics
Pages: 2147-2164
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683148
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683148
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2147-2164




Template-Type: ReDIF-Article 1.0
Author-Name: Margareta Dackehag
Author-X-Name-First: Margareta
Author-X-Name-Last: Dackehag
Author-Name: Lina Maria Ellegård
Author-X-Name-First: Lina Maria
Author-X-Name-Last: Ellegård
Author-Name: Ulf-G. Gerdtham
Author-X-Name-First: Ulf-G.
Author-X-Name-Last: Gerdtham
Author-Name: Therese Nilsson
Author-X-Name-First: Therese
Author-X-Name-Last: Nilsson
Title: Social assistance and mental health: evidence from longitudinal administrative data on pharmaceutical consumption
Abstract: 
 This paper adds to the small literature on the role of welfare benefits and mental health by studying the relationship between uptake of Social Assistance Benefit (SAB) and objective mental health measures. We use rich longitudinal administrative data on income, unemployment benefits and psychopharmaceutic prescriptions (antidepressants, anxiolytics, and hypnotics) for more than 140,000 Swedes in 2006–2012. Relative to earlier studies focusing on subjective mental health, an advantage of our approach is that we use longitudinal administrative data that do not suffer from non-response, under-reporting and self-justification biases. While we document a strong positive association between SAB and psychopharmaca consumption in ordinary least squares models, fixed effects estimates indicate that most of the association is due to unobserved individual-specific predisposition. Insofar as a relationship remains in the fixed effect models, it is driven by highly educated men. This result is consistent with earlier quantitative studies using survey data and with qualitative research suggesting that SAB uptake may be particularly stigmatizing for individuals with a higher initial socioeconomic position.
Journal: Applied Economics
Pages: 2165-2177
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683149
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683149
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2165-2177




Template-Type: ReDIF-Article 1.0
Author-Name: Ryan Larsen
Author-X-Name-First: Ryan
Author-X-Name-Last: Larsen
Author-Name: R. Garth Taylor
Author-X-Name-First: R. Garth
Author-X-Name-Last: Taylor
Author-Name: John R. McKean
Author-X-Name-First: John R.
Author-X-Name-Last: McKean
Author-Name: Donn M. Johnson
Author-X-Name-First: Donn M.
Author-X-Name-Last: Johnson
Title: Willingness-to-pay for snowmobile recreation: travel cost method models with and without post-season resurvey of trip count
Abstract: 
 Annual willingness-to-pay (WTP) for snowmobile recreation in Idaho is estimated using the travel cost method (TCM). On-site snow conditions are important and erratic, thus we collect two measures of the annual trip count, an in-season survey of the expected count, and a post-season survey of the actual count. Two variants of the TCM model are estimated. Using the post-season actual trip count data and the ‘traditional’ TCM model, WTP increases from $41 to $91 per person per trip as the fraction of the wage rate that is used to value the opportunity cost of travel time is increased from 1/4 to one. Using the preferred short-run decision TCM model, WTP increases from $53 to $194 as the snowmobiler ratings of off-trail snow conditions vary from worst to best. WTP estimates using the in-season expected trip count data and the traditional TCM model are much higher (triple) than those found using the post-season actual trip count data, and the confidence intervals are much larger.
Journal: Applied Economics
Pages: 2178-2190
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1686112
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1686112
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2178-2190




Template-Type: ReDIF-Article 1.0
Author-Name: Lilia Cavallari
Author-X-Name-First: Lilia
Author-X-Name-Last: Cavallari
Author-Name: Stefano D’Addona
Author-X-Name-First: Stefano
Author-X-Name-Last: D’Addona
Title: Export margins and world shocks: an empirical investigation in fixed and floating regimes
Abstract: 
 We use 4-digit data to document the role of world shocks for intensive and extensive margin of exports. We estimate a VAR model, where the endogenous bloc comprises bilateral export margins and relative GDP, and the exogenous bloc comprises disaggregated measures of world price shocks. We find that world shocks have a significant impact on both the average export volume and export diversification. Impulse responses display considerable heterogeneity depending on the shock considered, the exchange rate regime and the great trade collapse. The evidence in the paper has remarkable consequences for trade and exchange rate policies.
Journal: Applied Economics
Pages: 2191-2207
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1686113
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1686113
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2191-2207




Template-Type: ReDIF-Article 1.0
Author-Name: András Takács
Author-X-Name-First: András
Author-X-Name-Last: Takács
Author-Name: József Ulbert
Author-X-Name-First: József
Author-X-Name-Last: Ulbert
Author-Name: Andrew Fodor
Author-X-Name-First: Andrew
Author-X-Name-Last: Fodor
Title: Have investors learned from the crisis? An analysis of post-crisis pricing errors and market corrections in US stock markets based on the reverse DCF model
Abstract: 
 The traditional discounted cash flow (DCF) model is generally used to estimate the present value of an enterprise or its equity based on expected future parameters such as cash flows, growth rate and discount rate. In the last decade, the reverse DCF model has gained popularity. With this approach, the valuer uses the current market capitalization as a fixed input and seeks those ‘critical’ values of individual valuation parameters, which – assuming all other parameters remain unchanged – result in a value equal to current market value. This provides a point of comparison for the company’s realized performance and may provide insights regarding over or undervaluation. In this study, we develop a novel DCF model and conduct empirical analysis using data of 1001 US manufacturing, service, retail and financial companies. We examine pricing errors and market corrections in the post-crisis era based on the critical cash flow ratio defined in our reverse model. We find evidence of a general undervaluation in US stock markets with different pricing error patterns across industries. Our results confirm market correction mechanisms have worked properly in the post-crisis era with an average reaction time of 2 years, suggesting investors have learned from the crisis.
Journal: Applied Economics
Pages: 2208-2218
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1686114
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1686114
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2208-2218




Template-Type: ReDIF-Article 1.0
Author-Name: Fernanda Mazzotta
Author-X-Name-First: Fernanda
Author-X-Name-Last: Mazzotta
Author-Name: Francesca Bettio
Author-X-Name-First: Francesca
Author-X-Name-Last: Bettio
Author-Name: Valentina Zigante
Author-X-Name-First: Valentina
Author-X-Name-Last: Zigante
Title: Eldercare hours, work hours and perceived filial obligations
Abstract: 
 In this paper, we take a fresh look at the magnitude of the trade-off between caring informally for a parent and paid work. We adopt a simultaneous approach with a primary focus on how hours of care are influenced by hours of work rather than the other way round. We also investigate the role that filial obligations play in choices of caring versus working. Using the SHARE data (2004 and 2006) we find that the elasticity of informal care hours in response to working hours is between −0.17 in the caregivers sample and −0.19 in the women-only caregivers sample; small but not negligible. Moreover, we find that a 10%increase in the index measuring the strength of filial obligations increases weekly hours of care by about two and a half hours.
Journal: Applied Economics
Pages: 2219-2238
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1687839
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1687839
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2219-2238




Template-Type: ReDIF-Article 1.0
Author-Name: Terhi Maczulskij
Author-X-Name-First: Terhi
Author-X-Name-Last: Maczulskij
Author-Name: Jukka Nyblom
Author-X-Name-First: Jukka
Author-X-Name-Last: Nyblom
Title: Measuring the gender wage gap—a methodological note
Abstract: 
 We propose to estimate the Blinder-Oaxaca decomposition by a single-equation model augmented with interactions between the group membership and other predictors. The relative importance of predictors on the discriminatory wage gap is examined by the interaction coefficients, which may lead to very different conclusions than the usual percentage calculations using the detailed decomposition method. Comparisons are made between the traditional interpretations and those suggested here using wage data from Finland. The decomposition analysis suggests that the discriminatory male-female wage gap is largely related to work experience, while our preferred model points to the importance of family gap and working industry.
Journal: Applied Economics
Pages: 2239-2249
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1687840
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1687840
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2239-2249




Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Mohebi
Author-X-Name-First: Mehdi
Author-X-Name-Last: Mohebi
Author-Name: Fakhri Mirshojaee
Author-X-Name-First: Fakhri
Author-X-Name-Last: Mirshojaee
Title: Microdata analysis of the consequences of free trade port policy: the case of Iran free zones
Abstract: 
 Creating free trade zones as a policy to motivate new investment and improve the local economic indicators might be of some benefits. Following of this policy in Iranian major port, however, resulted vice versa by aggravating the current account balance that is higher imports and the same horizon diminished export sums. We derive the micro data of trade for the Iranian major Imam port according to code arrangements of harmonic system (HS), which permits the clustering of different goods categories. Then we extracted the sums of survey data for the years before and after Imam port became free trade zone and applied fixed effect difference in difference (DID) method to capture the heterogeneity of unobserved variables. Our control port of analysis was Rajaee port the policy did not implemented. Results show that just as Imam free port’s Current Account Balance deteriorated by increasing import and dampening of export sums.
Journal: Applied Economics
Pages: 2250-2260
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1687841
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1687841
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2250-2260




Template-Type: ReDIF-Article 1.0
Author-Name: Muzaffarjon Ahunov
Author-X-Name-First: Muzaffarjon
Author-X-Name-Last: Ahunov
Author-Name: Leo Van Hove
Author-X-Name-First: Leo
Author-X-Name-Last: Van Hove
Title: National culture and financial literacy: international evidence
Abstract: 
 We examine to what extent (aspects of) national culture can explain cross-country variations in financial literacy. Our results, for a sample of 92 countries, show that Hofstede’s dimensions of power distance and individualism explain, respectively, over 40 and 60 per cent – which is substantially more than national cognitive scores and standard economic variables. In particular, we find that financial literacy is lower in countries where power distance is high, and that the opposite is true for individualism. Uncertainty avoidance would seem be negatively related with financial literacy, but the evidence is not so strong. For masculinity, indulgence, and long-term orientation we find no significant impact. Overall, our results highlight the need for additional (interdisciplinary) theories that can improve our understanding of the determinants of financial literacy and better guide policies in this area.
Journal: Applied Economics
Pages: 2261-2279
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688241
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688241
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2261-2279




Template-Type: ReDIF-Article 1.0
Author-Name: Deiyalí A. Carpio
Author-X-Name-First: Deiyalí A.
Author-X-Name-Last: Carpio
Author-Name: Alberta Fernandez
Author-X-Name-First: Alberta
Author-X-Name-Last: Fernandez
Author-Name: Beatriz Urbano
Author-X-Name-First: Beatriz
Author-X-Name-Last: Urbano
Title: How to gain image and positioning on social media: Spanish agribusiness firm image and position on social media
Abstract: 
 The aim of this article is to obtain insights into how agribusiness firms can gain image recognition and positioning on SM and, in doing so, determine the images that can increase or diminish their positions on SM and predict the frequency of an image’s visibility on SM. This article uses data collected from a large number of Spanish agribusiness firms of the agrarian, agrifood and wine subsectors, located in rural peripheral areas or urban cores, to identify their images and positioning on social media. We use the Tagxedo digital tool to show the distinctive images of agribusiness firms on SM. Using the Howsociable digital tool and observing the SM key performance indicators (KPI), we measure the traffic and visibility of agribusiness firms on social media, and we find that a lot of agribusiness firms leave the potential of SM unused. The agribusiness firms upstream in the value chain and located in rural peripheral areas could take more advantages of SM visibility. We then create a model of image and positioning on SM using a binary logistic regression. We predict that more than two messages of sales per week on SM can diminish the visibility of agribusiness firm on SM.
Journal: Applied Economics
Pages: 2280-2291
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688242
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688242
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2280-2291




Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Rui Huang
Author-X-Name-First: Rui
Author-X-Name-Last: Huang
Author-Name: Ningli Wang
Author-X-Name-First: Ningli
Author-X-Name-Last: Wang
Author-Name: Liya Hau
Author-X-Name-First: Liya
Author-X-Name-Last: Hau
Title: Does economic policy uncertainty matter for commodity market in China? Evidence from quantile regression
Abstract: 
 This paper investigates the effect of economic policy uncertainty (EPU) on China’s agricultural and metal commodity futures returns across quantiles. We address this issue using the panel quantile regression approach, which allows for a more complete analysis of various conditions in the commodity market (i.e. bearish, normal, and bullish markets). Our empirical results reveal that domestic EPU shocks have a significantly negative effect on agricultural futures returns in bearish markets and a significantly positive effect on metal futures returns in bullish markets. The impacts of both domestic and U.S. EPU shocks on commodity markets are heterogeneous across quantiles and are sector specific. Additionally, by isolating positive and negative EPU shocks, the regression and test results indicate an asymmetric response of commodity futures prices in bullish markets. Moreover, our findings indicate that the metal futures market has a higher financialisation level than the agricultural futures market. The findings can be utilized by policymakers and investors.
Journal: Applied Economics
Pages: 2292-2308
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688243
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688243
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2292-2308




Template-Type: ReDIF-Article 1.0
Author-Name: Zhifeng Dai
Author-X-Name-First: Zhifeng
Author-X-Name-Last: Dai
Author-Name: Huan Zhu
Author-X-Name-First: Huan
Author-X-Name-Last: Zhu
Title: Forecasting stock market returns by combining sum-of-the-parts and ensemble empirical mode decomposition
Abstract: 
 In this article, we combine the sum-of-the-parts (SOP) method with Ensemble Empirical Mode Decomposition (EEMD) to forecast stock market returns. We obtain very significant stock return predictability both in statistical and economic terms. Interestingly, the strongest performance is achieved by the extended SOPEEMD method to forecast stock market returns when the price-earnings multiple growth is forecasted using the dividend yield as predictor ($$R_{oos}^2$$Roos2of 21.25%) with monthly data and the book-to-market ratio as predictor achieves $$R_{oos}^2$$Roos2 of 20.05% with monthly data. The highest monthly CER gains for the extended SOPEEMD method are for book-to-market ratio reach 14.11%. Furthermore, the evidence based on robust check supports the feasibility of our forecasting strategy.
Journal: Applied Economics
Pages: 2309-2323
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688244
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688244
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2309-2323




Template-Type: ReDIF-Article 1.0
Author-Name: Leo Sleuwaegen
Author-X-Name-First: Leo
Author-X-Name-Last: Sleuwaegen
Author-Name: Sander Ramboer
Author-X-Name-First: Sander
Author-X-Name-Last: Ramboer
Title: Regional competitiveness and high growth firms in the EU: the creativity premium
Abstract: 
 The finding that the economic performance of regions is driven by a small set of productive firms calls for a granular analysis of regional growth and competitiveness. Among the productive firms, a significant contribution is made by so-called high-growth firms (HGFs), which also account for the bulk of new jobs created in the region. In this paper, we examine the variation in the incidence of HGFs across a wide set of EU regions in relation to the regional entrepreneurial ecosystem. Looking through the lens of the experimentally oriented economy, we conceptualize the essential role that the creative class plays in the formation of collaborative innovation blocs from which dynamic entrepreneurship and high-growth firms emerge. We present original evidence showing that, for the human capital present in the region, employment in creative occupations has the strongest impact on the occurrence of high-growth firms. Our evidence also points to the stimulating role played by the quality of market-supporting institutions, agglomeration, and infrastructure.
Journal: Applied Economics
Pages: 2325-2338
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1686454
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1686454
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2325-2338




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Boateng
Author-X-Name-First: Alexander
Author-X-Name-Last: Boateng
Author-Name: Gloria Claudio-Quiroga
Author-X-Name-First: Gloria
Author-X-Name-Last: Claudio-Quiroga
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Title: Exchange rate dynamics in South Africa
Abstract: 
 The structure of the nominal exchange rates in South Africa is examined by using fractional integration. We investigate the levels and the volatilities against the US dollar, the British pound, the Euro, the Japanese yen, the Chinese yuan, the Australian dollar, and the Botswanan pula. The results indicate that most series are unit root, I(1) and though there is some evidence of mean reversion, the orders of integration are close to 1, implying high levels of persistence. However, there is evidence of mean reversion for Bostwana Pula in various subsamples. For the volatilities, the stationary long memory is observed in all cases.
Journal: Applied Economics
Pages: 2339-2352
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688245
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688245
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2339-2352




Template-Type: ReDIF-Article 1.0
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Author-Name: Roula Inglesi-Lotz
Author-X-Name-First: Roula
Author-X-Name-Last: Inglesi-Lotz
Title: Examining the differences in the impact of climate change on innovation between developed and developing countries: evidence from a panel system GMM analysis
Abstract: 
 This article aims to explore the dynamic relationship between innovation and climate changes for a sample of 60 countries. We performed an aggregated analysis in which we use the whole sample (60 countries) and a disaggregated analysis in which we split the sample in developed (36 countries) and developing (24 countries). We estimate a balance panel dynamic System Generalized Method of Moment approach for the period 2008–2014. Findings of the aggregated analysis indicate that for the whole sample, there is a positive response from climate change to innovation. Recent climate changes have a positive impact on the innovation process. The disaggregate analysis shows that for developed countries, there is a positive response from climate changes to innovation only for total CO2 emission and CO2 emission from natural gas. However, there is a negative response from the other CO2 emission towards innovation. For the developing countries, the overall results indicate that there is no significant effect from climate change to innovation. Furthermore, findings indicate also, that the level of growth and research and development expenditure exert a positive effect on innovation process for both aggregate and disaggregate analysis.
Journal: Applied Economics
Pages: 2353-2365
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1690126
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1690126
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2353-2365




Template-Type: ReDIF-Article 1.0
Author-Name: Xianli Kong
Author-X-Name-First: Xianli
Author-X-Name-Last: Kong
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Lei Zhang
Author-X-Name-First: Lei
Author-X-Name-Last: Zhang
Title: Characteristics and determinants of asymmetric phase shifts in China’s manufacturing industrial production cycles
Abstract: 
 Employing a panel of 30 Chinese manufacturing industries from January 2003 through May 2017 (2003M01-2017M05), this study is the first attempt to investigate the characteristics and determinants of asymmetric phase shifts in China’s manufacturing industrial production cycles. The empirical results suggest that China’s manufacturing industries and aggregate industry have experienced similar frequent phase shifts, but remarkable differences exist in the phase shifts across manufacturing industries. Furthermore, China’s manufacturing industries tend to comove between cyclical phases in sync with the aggregate industrial cycle, but the comovement is asymmetric. In addition, the estimation results of the panel logit model indicate that both the spillovers through input-output linkages and some macroeconomic shocks (i.e. monetary policy and financial policy shocks) are significant determinants of China’s manufacturing industrial phase shifts; however, their effects are asymmetric. Finally, suggestions are offered to Chinese policymakers not only to weaken the economic effect of cyclical fluctuations, but also to promote growth in the manufacturing industries.
Journal: Applied Economics
Pages: 2366-2376
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1690627
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1690627
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2366-2376




Template-Type: ReDIF-Article 1.0
Author-Name: Raphaël Murswieck
Author-X-Name-First: Raphaël
Author-X-Name-Last: Murswieck
Author-Name: Mihaela Drăgan
Author-X-Name-First: Mihaela
Author-X-Name-Last: Drăgan
Author-Name: Mihaela Maftei
Author-X-Name-First: Mihaela
Author-X-Name-Last: Maftei
Author-Name: Diana Ivana
Author-X-Name-First: Diana
Author-X-Name-Last: Ivana
Author-Name: Astrid Fortmüller
Author-X-Name-First: Astrid
Author-X-Name-Last: Fortmüller
Title: A study on the relationship between cultural dimensions and innovation performance in the European Union countries
Abstract: 
 The aim of this article is to analyse the relationship between cultural dimensions and innovation performance within the EU28 countries in order to identify if cultural dimensions influence the innovation performance. The authors performed a data analysis based on an empirical study using open data of Summary Innovation Index–European Innovation Scoreboard (SII-EIS) and Hofstede cultural dimensions in order to identify innovation performance influencing factors in terms of enablers and blockers. Cultural-conditioned blockers within the innovation phases can be the reason why innovation is working more or less successfully and why certain countries are more or less performing in innovation. An essential finding of the present study was that indulgence as a cultural dimension seems to leverage more than the classic reasons the innovation performance on a nations’ level. Being aware of cultural dimensions, the present article findings can support companies to improve their innovation performance.
Journal: Applied Economics
Pages: 2377-2391
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1690628
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1690628
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2377-2391




Template-Type: ReDIF-Article 1.0
Author-Name: Wensheng Kang
Author-X-Name-First: Wensheng
Author-X-Name-Last: Kang
Author-Name: Ronald A. Ratti
Author-X-Name-First: Ronald A.
Author-X-Name-Last: Ratti
Author-Name: Joaquin Vespignani
Author-X-Name-First: Joaquin
Author-X-Name-Last: Vespignani
Title: Impact of global uncertainty on the global economy and large developed and developing economies
Abstract: 
 Global uncertainty shocks are associated with a sharp decline in global inflation, growth and interest rate. Global uncertainty shocks have more protracted, statistically significant and substantial effects on global growth, inflation and interest rate than U.S. uncertainty shocks. When controlling for domestic uncertainty, the decline in output following a rise in global uncertainty is statistically significant in each large country, except for the decline for China. For most economies, a positive shock to global uncertainty has a depressing effect on prices and official interest rates – exceptions are Brazil, Mexico and Russia, which are economies with large capital outflows during financial crises.
Journal: Applied Economics
Pages: 2392-2407
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1690629
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1690629
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2392-2407




Template-Type: ReDIF-Article 1.0
Author-Name: Sen Zeng
Author-X-Name-First: Sen
Author-X-Name-Last: Zeng
Author-Name: Satoru Shimokawa
Author-X-Name-First: Satoru
Author-X-Name-Last: Shimokawa
Title: The effect of health information on smoking intensity: does addiction matter?
Abstract: 
 We investigate how health information, such as a notification of hypertension, influences smoking intensity differently among smokers with different levels of addiction. To circumvent the endogeneity of health information, we employ a sharp regression discontinuity design that exploits the discontinuity around the cut-off point for a hypertension diagnosis. The addiction levels are conjectured by the age of smoking initiation. Using individual-level data from China, our results demonstrate that a hypertension notification reduces daily cigarette smoking by 8.01 cigarettes among less-addicted smokers in the short term, while the influence is insignificant among more-addicted smokers; the observed difference is better explained by addiction levels than by health attitudes. The long-term effects of a hypertension notification are insignificant, regardless of addiction levels. Our results may provide new support for the importance of preventing youth smoking and providing regular medical check-ups.
Journal: Applied Economics
Pages: 2408-2426
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1691141
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1691141
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2408-2426




Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Croce
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Croce
Author-Name: Emanuela Ghignoni
Author-X-Name-First: Emanuela
Author-X-Name-Last: Ghignoni
Title: The evolution of wage gaps between STEM and non-STEM graduates in a technological following economy
Abstract: 
 Based on the assumption that the set of skills characterizing different fields of study do not match the new technologies in the same way, we focus on the evolution of wage gaps between university graduates in STEM disciplines and other subjects. An Oaxaca decomposition technique is applied to early wages of Italian graduates after taking into account both the selection into employment and the endogeneity of major’s choice. Our results can hardly be reconciled with the hypothesis of a technological change favouring STEM graduates in Italy, and are more consistent with the worsening in the relative demand for STEM graduates.
Journal: Applied Economics
Pages: 2427-2442
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1691142
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1691142
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2427-2442




Template-Type: ReDIF-Article 1.0
Author-Name: Imane El Ouadghiri
Author-X-Name-First: Imane
Author-X-Name-Last: El Ouadghiri
Author-Name: Remzi Uctum
Author-X-Name-First: Remzi
Author-X-Name-Last: Uctum
Title: Macroeconomic expectations and time varying heterogeneity:evidence from individual survey data
Abstract: 
 The goal of this paper is to investigate forecast heterogeneity and time variability in the formation of expectations using disaggregated monthly survey data on macroeconomic indicators provided by Bloomberg from June 1998 to August 2017. We show that our panel of forecasters are not rational and are moderately heterogeneous and thus confirm that previously well-established results on asset prices hold for macroeconomic indicators. We propose a flexible hybrid forecast model defined at any time as a combination of the extrapolative, regressive, adaptive and interactive heuristics. Controlling for endogenous structural breaks, we find that experts adjust their forecast behaviour at any time with some inertia in extrapolative and adaptive profiles. Changes in the formation of expectations are triggered mostly by financial shocks, and uncertainty is dealt with by using complex processes in which the fundamentalist component overweighs chartist activity. Forecasters whose models combine different relevant rules and display high temporal flexibility provide the most accurate forecasts. Authorities can then stabilize the domestic markets by encouraging fundamentalists’ forecasts through increased transparency policy.
Journal: Applied Economics
Pages: 2443-2459
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1691713
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1691713
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2443-2459




Template-Type: ReDIF-Article 1.0
Author-Name: Ranajoy Bhattacharyya
Author-X-Name-First: Ranajoy
Author-X-Name-Last: Bhattacharyya
Author-Name: Sayani Ghosh
Author-X-Name-First: Sayani
Author-X-Name-Last: Ghosh
Title: Effect of the global financial meltdown on India’s aggregate export volumes
Abstract: 
 This paper sets up a demand-supply model to analyse India’s export performance (in terms of volumes rather than values) between 2000Q1–2014Q4. The main objective is to determine the impact of the financial meltdown of 2008 on India’s export performance. During the meltdown period, decline in price by India’s competitors in the international market resulted in (1) loss of competitiveness of India’s export goods and (2) a complete breakdown of the price mechanism affecting India’s export demand. Though export supply was not significantly affected by the meltdown episode we find evidence that exporting firms turned towards the domestic market to cope with the loss in export. The meltdown episode began to significantly affect India’s export demand and supply equations from 2009Q3. The demand and supply equations after that period became so unstable that ‘nothing worked’ for India’s exporters as they tried to counter the decline in export. Hence there was ample reason for them to panic and seek the government’s help. Government policies aimed at boosting export demand did have a positive impact on India’s export performance. Government policies to boost export supply had no impact except being palliative for the exporters at their moment of crisis
Journal: Applied Economics
Pages: 2460-2471
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1691714
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1691714
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2460-2471




Template-Type: ReDIF-Article 1.0
Author-Name: Ilyes Abid
Author-X-Name-First: Ilyes
Author-X-Name-Last: Abid
Author-Name: Abderrazak Dhaoui
Author-X-Name-First: Abderrazak
Author-X-Name-Last: Dhaoui
Author-Name: Stéphane Goutte
Author-X-Name-First: Stéphane
Author-X-Name-Last: Goutte
Author-Name: Khaled Guesmi
Author-X-Name-First: Khaled
Author-X-Name-Last: Guesmi
Title: Hedging and diversification across commodity assets
Abstract: 
 We investigate the conditional cross effects and volatility spillover between equity markets and commodity markets (oil and gold), Fama and French HML and SMB factors, volatility index (VIX) and bonds using different multivariate GARCH specifications considering the potential asymmetry and persistence behaviours. We analyse the dynamic conditional correlation between the US equity market and a set of commodity prices and risk factors to forecast the transmission of shock to the equity market firstly, and to determine and compare the optimal hedge ratios from the different models based on the hedging effectiveness of each model. Our findings suggest that all models confirm the significant returns and volatility spillovers. More importantly, we find that GO-GARCH is the best-fit model for modelling the joint dynamics of different financial variables. The results of the current study have implications for investors: (i) the equity market displays inverted dynamics with the volatility index suggesting strong evidence of diversification benefit; (ii) of the hedging assets gold appears the best hedge for the US equity market as it has a higher hedge effectiveness than oil and bonds over time; and (iii) despite these important results, a better hedge may be obtained by using well-selected firm sized and profitability-based portfolios.
Journal: Applied Economics
Pages: 2472-2492
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693016
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693016
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2472-2492




Template-Type: ReDIF-Article 1.0
Author-Name: Gaofeng Zou
Author-X-Name-First: Gaofeng
Author-X-Name-Last: Zou
Author-Name: Qiyuan Cheng
Author-X-Name-First: Qiyuan
Author-X-Name-Last: Cheng
Author-Name: Weijie Chen
Author-X-Name-First: Weijie
Author-X-Name-Last: Chen
Author-Name: J. Ginger Meng
Author-X-Name-First: J. Ginger
Author-X-Name-Last: Meng
Title: What causes the IPO underpricing? New evidence from China’s SME market
Abstract: 
 We study 10-year IPO initial returns in China’s small and medium-sized enterprise (SME) board between 2006 and 2016, including 755 IPO samples. At the same time, we test how policy changes of IPO pricing and trading mechanism affect first-day initial returns. Our article adopts the stochastic frontier approach to estimate the fair value of IPOs and decompose the components of deliberate underpricing and mis-valuation factors, then using linear regressions investigate correlation between first-day initial returns and deliberate underpricing or mis-valuation factors. We find it is mis-valuation factors, especially, the irrational behaviour of individual investors that mainly cause the IPO underpricing in China’s SME market rather than deliberate underpricing. Besides, influenced by IPO pricing policies, the characteristic of IPO pricing varies from period to period.
Journal: Applied Economics
Pages: 2493-2507
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693017
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693017
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2493-2507




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Dithmer
Author-X-Name-First: Jan
Author-X-Name-Last: Dithmer
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Trade openness and child health: a heterogeneous panel cointegration analysis
Abstract: 
 In this paper, we examine the impact of trade openness on child health, based on a cross-country panel data set covering 66 countries for the period 1960–2013. To account for the time-series properties of the data and potential cross-country heterogeneity in the impact of trade openness, the study employs heterogeneous panel cointegration techniques that are robust to omitted variables and endogeneity problems. The results reveal that trade openness and child health are cointegrated, and that trade works to reduce the child mortality rate significantly in the long-run. The results are robust to the methodology and trade openness and child health indicators employed, as well as to the presence of cross-sectional dependence and changes in the sample composition. The findings also suggest that the impact of trade on child health tends to be stronger in countries with better institutional quality, lower corruption, good governance, political stability, and sound policies that promote private sector development.
Journal: Applied Economics
Pages: 2508-2525
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693018
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693018
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2508-2525




Template-Type: ReDIF-Article 1.0
Author-Name: Weihan Cui
Author-X-Name-First: Weihan
Author-X-Name-Last: Cui
Title: Is debt conservatism the solution to financial constraints? An empirical analysis of Japanese firms
Abstract: 
 This paper investigates why firms choose the conservative financing strategy known as non-positive net debt policy, which is a more recent prevalent trend among Japanese firms. The analysis reveals that Japanese firms are more likely to be financially conservative if they are smaller, older and more profitable and have fewer growth opportunities and tangibility. The survival analysis further investigates the duration of conservative debt policy and ordinary debt policy. The evidence shows that firms adopt/abandon the conservative policy with different motivations and preferences over debt conservatism. In particular, we argue that the more financially constrained firms abandon the conservative debt policy sooner than their counterparts, while less financially constrained firms abandon the ordinary (less conservative) debt policy sooner than their counterparts. The results suggest that a firm uses a conservative debt policy in terms of net leverage as a temporary buffer to mitigate financial constraints.
Journal: Applied Economics
Pages: 2526-2543
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693019
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693019
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2526-2543




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Charl Jooste
Author-X-Name-First: Charl
Author-X-Name-Last: Jooste
Title: Long memory, economic policy uncertainty and forecasting US inflation: a Bayesian VARFIMA approach
Abstract: 
 We compare inflation forecasts of a vector autoregressive fractionally integrated moving average (VARFIMA) model against standard forecasting models. U.S. inflation forecasts improve when controlling for persistence and economic policy uncertainty (EPU). Importantly, the VARFIMA model, comprising of inflation and EPU, outperforms commonly used inflation forecast models.
Journal: Applied Economics
Pages: 1047-1054
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210777
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210777
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1047-1054




Template-Type: ReDIF-Article 1.0
Author-Name: Li Nie
Author-X-Name-First: Li
Author-X-Name-Last: Nie
Title: Macroeconomic impacts of China’s foreign exchange reserve accumulation: a vector autoregression analysis using pure-sign-restriction approach
Abstract: 
 This study employs pure-sign-restriction approach analysing the macroeconomic impacts of foreign reserve accumulation and discusses the foreign exchange sterilization behaviour of the People’s Bank of China (PBoC). Sign restriction analysis shows that the effects of reserve accumulation shock are initially ambiguous on all variables, but later a positive influence only on base money can be observed. With regard to sterilization intervention, the effect is significant even though it degrades gradually over time. In China, the monetary authority actively undertakes sterilization intervention in order to remove the influence of passive release of base money caused by foreign reserve accumulation.
Journal: Applied Economics
Pages: 1055-1070
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210778
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210778
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1055-1070




Template-Type: ReDIF-Article 1.0
Author-Name: Eoin Reeves
Author-X-Name-First: Eoin
Author-X-Name-Last: Reeves
Author-Name: Dónal Palcic
Author-X-Name-First: Dónal
Author-X-Name-Last: Palcic
Author-Name: Darragh Flannery
Author-X-Name-First: Darragh
Author-X-Name-Last: Flannery
Author-Name: R. Richard Geddes
Author-X-Name-First: R. Richard
Author-X-Name-Last: Geddes
Title: The determinants of tendering periods for PPP procurement in the UK: an empirical analysis
Abstract: 
 The procurement of infrastructure projects via public–private partnerships (PPPs) is rising globally. PPPs are, however, often characterized by lengthy tendering periods, defined as the difference between contract notice and financial close. Tendering periods are important because they account for a significant proportion of overall project delivery time. Slow tendering deters bidders and thus reduces competition for contracts. We source data on 670 PPP projects in the United Kingdom and use a duration analysis model to empirically examine factors that impact tendering period duration. Our results reveal significant sectoral variation with projects in the health and housing sectors taking significantly longer to reach financial close. We also show that, after controlling for other factors, projects with higher capital values and projects that overlap with the timing of general elections are associated with significantly longer tendering periods. We further examine the impact of the competitive dialogue procurement method and find evidence that tendering periods have increased since 2006; the year competitive dialogue was introduced. We do, however, observe a significant reduction in the time between appointment of preferred bidder and financial close post-2006. This suggests that competitive dialogue is effective in reducing the scope for negotiations by preferred bidders holding quasi-monopoly advantages.
Journal: Applied Economics
Pages: 1071-1082
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210779
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210779
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1071-1082




Template-Type: ReDIF-Article 1.0
Author-Name: Michael E. O’Hara
Author-X-Name-First: Michael E.
Author-X-Name-Last: O’Hara
Author-Name: Philip Sirianni
Author-X-Name-First: Philip
Author-X-Name-Last: Sirianni
Title: Carbon efficiency of US colleges and universities: a nonparametric assessment
Abstract: 
 Under the American College and University Presidents’ Climate Commitment (ACUPCC), institutes of higher education have pledged to pursue a goal of carbon neutrality. We utilize emissions reported under the ACUPCC agreement and a nonparametric data envelopment analysis approach in order to evaluate the relative performance of signatories to the agreement in terms of producing teaching and research with the least greenhouse gas emissions. We find that while many signatory institutions are now producing their desirable outputs relatively efficiently in terms of carbon emissions, there still exists considerable variation in efficiency and potential for improvement. Results of a second stage efficiency change analysis shows evidence of both movement towards the efficiency frontier since signing, and some movement of the frontier itself, though this evidence comes primarily from teaching-focused institutions.
Journal: Applied Economics
Pages: 1083-1097
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210780
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210780
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1083-1097




Template-Type: ReDIF-Article 1.0
Author-Name: Yingying Xu
Author-X-Name-First: Yingying
Author-X-Name-Last: Xu
Author-Name: Zhi-Xin Liu
Author-X-Name-First: Zhi-Xin
Author-X-Name-Last: Liu
Author-Name: Hsu-Ling Chang
Author-X-Name-First: Hsu-Ling
Author-X-Name-Last: Chang
Author-Name: Adelina Dumitrescu Peculea
Author-X-Name-First: Adelina Dumitrescu
Author-X-Name-Last: Peculea
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Title: Does self-fulfilment of the inflation expectation exist?
Abstract: 
 This study examines the causal relationship between the actual and expected inflation in the U.S., using the bootstrap Granger full-sample causality test and sub-sample rolling-window estimation test to illustrate the self-fulfilment of inflation expectations. The full-sample result indicates that there is a bidirectional causality between the actual and expected inflation, showing the possibility of self-fulfilment of inflation expectations which illustrates that inflation is driven by inflation expectation. However, considering structural changes in two series, we find that the short-run causal nexus between the actual and expected inflation using full-sample data are fraudulent. By adopting a time-varying rolling-window approach to revisiting the dynamic causal relationships, this article identifies that the actual inflation has both positive and negative impacts on the expected inflation in distinct sub-periods. Nevertheless, inflation expectation exerts only negative effects on the actual inflation. The results point out that the self-fulfilment of inflation expectations does not exist. Given the bidirectional nexus between the actual and expected inflation, keeping a low and stable inflation is critical to price stability and anchoring of inflation expectation.
Journal: Applied Economics
Pages: 1098-1113
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210781
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210781
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1098-1113




Template-Type: ReDIF-Article 1.0
Author-Name: Hamza Bennani
Author-X-Name-First: Hamza
Author-X-Name-Last: Bennani
Author-Name: Matthias Neuenkirch
Author-X-Name-First: Matthias
Author-X-Name-Last: Neuenkirch
Title: The (home) bias of European central bankers: new evidence based on speeches
Abstract: 
 Speeches are an important vehicle for central bankers to convey individual views on the preferred policy stance. In this article, we employ an automated text linguistic approach to create an indicator that measures the tone of the 1,618 speeches delivered by members of the Governing Council (GC) during the period 1999M1–2014M4. We then relate this variable to euro area and national macroeconomic forecasts. Our key findings are as follows. First, inflation and growth expectations have a positive and significant impact on the hawkishness of a speech. Second, different growth expectations across the euro area and different preferences significantly explain discrepancies across speakers. Third, the voiced preferences of presidents of the national central banks (NCBs) largely coincide with the level of independence their central banks had at the time of the Maastricht Treaty. However, in general, there are not much differences between members of the Executive Board and the NCB presidents. Fourth, we find some evidence that central bankers adjust the gist of their speeches depending on whether they talk at home or abroad and before or after a GC meeting. Finally, differences in central banker preferences are the key source of variation in their speeches before the financial crisis.
Journal: Applied Economics
Pages: 1114-1131
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210782
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210782
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1114-1131




Template-Type: ReDIF-Article 1.0
Author-Name: Henry W. Chappell
Author-X-Name-First: Henry W.
Author-X-Name-Last: Chappell
Author-Name: Rob Roy McGregor
Author-X-Name-First: Rob Roy
Author-X-Name-Last: McGregor
Title: The lower bound and the causes of monetary policy inertia: evidence from Sweden
Abstract: 
 In 2009, in the midst of a global recession, Sweden’s Riksbank approached a lower bound on nominal interest rates. This encounter with the lower bound provides a natural experiment for investigating the causes of monetary policy inertia. To exploit this experiment, we estimate Taylor rules with Tobit specifications that permit both interest rate smoothing and persistent shocks (serial correlation) as explanations for inertia. The interest rate smoothing hypothesis leads to a specification in which lagged actual values of the dependent variable appear on the right-hand side of the Taylor rule, while the persistent shocks hypothesis leads to a specification in which lagged values of an unobserved latent dependent variable appear on the right-hand side of the Taylor rule. The divergence of actual and latent dependent variables that occurs at the lower bound provides leverage in distinguishing the two hypotheses. For a conventional Taylor rule, we find evidence of both sources of inertia. For a modified Taylor rule that includes a measure of financial stress, our evidence suggests that interest rate smoothing is the principal source of monetary policy inertia.
Journal: Applied Economics
Pages: 1132-1146
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213360
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213360
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1132-1146




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu
Author-X-Name-First: Chun-Chu
Author-X-Name-Last: Liu
Author-Name: Tse-Yu Wang
Author-X-Name-First: Tse-Yu
Author-X-Name-Last: Wang
Author-Name: Guang-Zhuang Yu
Author-X-Name-First: Guang-Zhuang
Author-X-Name-Last: Yu
Title: Using AHP, DEA and MPI for governmental research institution performance evaluation
Abstract: 
 Under situations of limited resources, soft powers such as technology development and innovation become critical capabilities for a nation&#x2019;s continuous growth and sustainability. Therefore, we used analytical hierarchy process (AHP), data envelopment analysis (DEA), and Malmquist productivity index (MPI) to evaluate the performance of research projects in 6 main fields of study managed by the Ministry of Science and Technology (MOST) in Taiwan from 2002 to 2012. Among the 6 fields of study, Agriculture and Humanities were two research fields as efficiency; and the sequence of inefficiency 4 fields were sociology, medicine, science, and engineering. Although the field of sociology was inefficiency, it was the only field show continuous growth in result of MPI analysis. Taking the fields as a whole, the result of the analysis of total factor productivity showed recession. However, as seen from the growth in technical change and in scale efficiency change, the MOST was effective to a certain extent during the period. However, the recession in technical efficiency change showed that further improvement in the planning and distribution of manpower and funds is needed.
Journal: Applied Economics
Pages: 983-994
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524131
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524131
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:983-994




Template-Type: ReDIF-Article 1.0
Author-Name: Xianyan Wang
Author-X-Name-First: Xianyan
Author-X-Name-Last: Wang
Author-Name: Lihong Wang
Author-X-Name-First: Lihong
Author-X-Name-Last: Wang
Title: State-enterprise relation, local economic priority, and corporate environmental responsibility
Abstract: 
 This paper empirically investigates how the state-enterprise relation and local government&#x2019;s economic priority affect corporate environmental responsibility in a sample of Chinese polluting enterprises during 2009&#x2013;2013. We find that firms appointing politically connected directors fail to fulfil their obligations in environmental responsibility, characterized by a poor enforcement of discharge fees. Besides, firms contributing a large share of industrial output to the local economy are with a smaller magnitude of discharge levies. In addition, the enforcement of discharge fees is poorer in the most polluted regions, while tourism activity and the local government&#x2019;s incentive to disclose environmental information increase discharge fees.
Journal: Applied Economics
Pages: 995-1009
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524568
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524568
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:995-1009




Template-Type: ReDIF-Article 1.0
Author-Name: Le Wen
Author-X-Name-First: Le
Author-X-Name-Last: Wen
Author-Name: Sholeh A. Maani
Author-X-Name-First: Sholeh A.
Author-X-Name-Last: Maani
Title: Job mismatches and career mobility
Abstract: 
 Does over-education assist or hinder occupational advancement? Career mobility theory hypothesizes that over-education leads to a higher level of occupational advancement and wage growth over time, with mixed international empirical evidence. This paper re-tests career mobility theory directly using a rich Australian longitudinal data set. A dynamic random effects probit model is employed to examine upward occupational mobility, considering two-digit occupational rank advancement and wage growth over three-year intervals. The &#x2018;Household, Income and Labour Dynamics in Australia&#x2019; data across nine years are employed, and a Mundlak correction model is adopted to adjust for unobserved heterogeneity effects and potential endogeneity, both of which are important to over-education analysis. Contrary to career theory, the results point to job mismatch as an economic concern rather than a passing phase, regardless of whether or not workers are skill-matched. Results further show the importance of adjusting for endogeneity.
Journal: Applied Economics
Pages: 1010-1024
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524569
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524569
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1010-1024




Template-Type: ReDIF-Article 1.0
Author-Name: GwanSeon Kim
Author-X-Name-First: GwanSeon
Author-X-Name-Last: Kim
Author-Name: Jun Ho Seok
Author-X-Name-First: Jun Ho
Author-X-Name-Last: Seok
Author-Name: Tyler B. Mark
Author-X-Name-First: Tyler B.
Author-X-Name-Last: Mark
Author-Name: Michael R. Reed
Author-X-Name-First: Michael R.
Author-X-Name-Last: Reed
Title: The price relationship between organic and non-organic vegetables in the U.S.: evidence from Nielsen scanner data
Abstract: 
 This study investigates price relationships between organic and conventional carrots, tomatoes, and lettuce in the U.S. utilizing Nielsen scanner data from 2006&#x2013;2015. We employ a threshold vector error correction model (TVECM), threshold vector autoregressive model (TVAR), and threshold cointegration test to test whether market integration exists between organic and conventional vegetables as well as the existence of asymmetric price transmission. The results find positive long-run relationships between organic and conventional prices of carrots and tomatoes and show the existence of asymmetric price transmission in price pairs of lettuce and tomatoes. Our findings suggest that the price relationship between organic and conventional vegetables varies by characteristics, such as shelf life, volatility in the price premium, and substitutability.
Journal: Applied Economics
Pages: 1025-1039
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524570
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524570
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1025-1039




Template-Type: ReDIF-Article 1.0
Author-Name: Chuantian He
Author-X-Name-First: Chuantian
Author-X-Name-Last: He
Author-Name: Chunding Li
Author-X-Name-First: Chunding
Author-X-Name-Last: Li
Author-Name: Chuangwei Lin
Author-X-Name-First: Chuangwei
Author-X-Name-Last: Lin
Title: Trade imbalance and the endogenous optimal tariff
Abstract: 
 Endogenous tariff literatures reveal empirically that trade imbalance is negatively related with import tariff, this article gives a theoretical evidence and explanation to support this finding with the methodology of multi-country numerical general equilibrium modelling and simulation. We explore how optimal tariff changes after trade imbalance is introduced, and find that optimal tariffs decrease substantially, either for surplus or deficit countries, when imbalance is considered. Specifically, when the imbalance is modelled in endogenous monetary and inside-money structures, the optimal tariffs decrease by 26% globally on average. Our results suggest that the deepening trade imbalance is beneficial to the global trade liberalization due to its driving tariffs down.
Journal: Applied Economics
Pages: 1040-1051
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524974
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524974
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1040-1051




Template-Type: ReDIF-Article 1.0
Author-Name: Mary Arends-Kuenning
Author-X-Name-First: Mary
Author-X-Name-Last: Arends-Kuenning
Author-Name: Kathy Baylis
Author-X-Name-First: Kathy
Author-X-Name-Last: Baylis
Author-Name: Rafael Gardu&#xF1;o-Rivera
Author-X-Name-First: Rafael
Author-X-Name-Last: Gardu&#xF1;o-Rivera
Title: The effect of NAFTA on internal migration in Mexico: a regional economic analysis
Abstract: 
 Trade facilitates growth in some regions of a country while shrinking others, and therefore to benefit from trade, labour may need to be able to migrate. This mobility is particularly crucial in a developing country with high income inequality like Mexico. We seek to answer the following questions: What characteristics facilitate or hinder that internal migration? Has trade liberalization changed the pattern of internal migration in Mexico? We first predict regional economic growth resulting from changes in Mexico-US tariffs by sector. We find that trade liberalization appears to have largely benefited the manufacturing sector. Next, using a spatial gravity model of migration, we find that while economic growth from trade openness drew workers to urban regions in the northern Border States of Mexico, much of the trade-driven migration occurred before NAFTA. Second, contrary to popular belief, migration from largely rural states appears to have decreased since NAFTA. We also find evidence that migration to the United States increased after NAFTA. Last, we find that income disparity in both the destination and origin region deters migration and that this effect increases after NAFTA. Thus, we see evidence that within-region income disparity can hinder migration, potentially exacerbating income disparity among regions.
Journal: Applied Economics
Pages: 1052-1068
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524976
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524976
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1052-1068




Template-Type: ReDIF-Article 1.0
Author-Name: John A. Karikari
Author-X-Name-First: John A.
Author-X-Name-Last: Karikari
Author-Name: Hashem Dezhbakhsh
Author-X-Name-First: Hashem
Author-X-Name-Last: Dezhbakhsh
Title: The United States&#x2019; higher education antitrust exemption and college enrollment
Abstract: 
 This study examines the effect of the higher education antitrust exemption on enrollment of financial aid applicants at highly selective private colleges. The antitrust exemption, used since 2002, was extended to 2022 by the U.S. Congress in 2015, allowing colleges with need-blind admission policy to use common standards without discussing or comparing individual awards. Our findings, which are contrary to earlier studies, suggest that the likelihood of enrollment at the colleges implementing the antitrust exemption increased compared to those that did not. Concerns about the adverse effect of the exemption on enrollment, therefore, seems to be unwarranted. Moreover, the common standards used by need-blind colleges do not seem to increase college access for low income students. These findings can be useful to policy makers who soon have to consider extending the exception beyond 2022.
Journal: Applied Economics
Pages: 1069-1080
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524978
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524978
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1069-1080




Template-Type: ReDIF-Article 1.0
Author-Name: Johannes Sauer
Author-X-Name-First: Johannes
Author-X-Name-Last: Sauer
Author-Name: Hans Vrolijk
Author-X-Name-First: Hans
Author-X-Name-Last: Vrolijk
Title: Innovation and performance – evidence at micro level
Abstract: 
 This empirical study aims to shed light on the link between innovation and economic performance at micro level. Based on a comprehensive survey among dairy and crop farms in the Netherlands we estimate a structural multi-stage model to deliver evidence on the effect of engagement and investment in innovation on the production of product, process and organizational or marketing innovations as well as on the effect of such innovations on farm level productivity. The results suggest various market and farm behaviour related factors to stimulate an increase in innovation engagement and production. Furthermore, the study reveals that indeed a greater innovation investment per unit (innovation input) leads to a higher probability of producing at least one successful product, process and/or organizational or marketing innovation (innovation output). The production of process and organizational or marketing related innovation leads to significant productivity gains. Various recommendations towards a more effective and efficient innovation policy are finally given.
Journal: Applied Economics
Pages: 4673-4699
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597252
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597252
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4673-4699




Template-Type: ReDIF-Article 1.0
Author-Name: Shyama Ratnasiri
Author-X-Name-First: Shyama
Author-X-Name-Last: Ratnasiri
Author-Name: Ranjika Walisinghe
Author-X-Name-First: Ranjika
Author-X-Name-Last: Walisinghe
Author-Name: Nicholas Rohde
Author-X-Name-First: Nicholas
Author-X-Name-Last: Rohde
Author-Name: Ross Guest
Author-X-Name-First: Ross
Author-X-Name-Last: Guest
Title: The effects of climatic variation on rice production in Sri Lanka
Abstract: 
 We study the responsiveness of rice production to climatic variation using a recent pseudo-panel data set from Sri Lanka. Output per farm is modelled as a non-linear function of temperature and rainfall (and other standard controls) using fixed effects regressions. We find that both climatic variables have concave, non-monotonic effects upon production, and that output is close to maximized at current climatic values. This implies that variations in growing conditions are likely to have negative effects upon production. Random simulations are used to model these impacts under various climate change scenarios, and we find that increasing temperatures will adversely affect rice production much more than varying rainfall, although the effects of a small ceteris paribus rise in temperature are positive. As rice production is a key component in economic output for Sri Lanka and other developing countries, our results have implications for food policy and poverty management in the future.
Journal: Applied Economics
Pages: 4700-4710
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597253
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597253
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4700-4710




Template-Type: ReDIF-Article 1.0
Author-Name: Edouard Wemy
Author-X-Name-First: Edouard
Author-X-Name-Last: Wemy
Title: The labour income share and the relative price of investment in the US: an empirical investigation
Abstract: 
 Several studies argue that the recent decline in the secular trend of the labour income share is mostly driven by capital-embodied technological progress which is typically identified with trend reductions in the relative price of investment. In this paper, I use data from the United States to assess the nature of the relationship between trends in the labour share and the relative price of investment. Results from co-integration tests reveal that the share and the relative price of investment are most likely not co-integrated. However, co-variation tests indicate that both time series share a common stochastic component, and additional tests of structural breaks point at the presence of a common change in the mean or trend of both series. These results suggest that capital-embodied or investment-specific technological progress may have played an important role in the decline of the secular trend of the labour share.
Journal: Applied Economics
Pages: 4711-4725
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597254
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597254
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4711-4725




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Borghesi
Author-X-Name-First: Richard
Author-X-Name-Last: Borghesi
Author-Name: Kiyoung Chang
Author-X-Name-First: Kiyoung
Author-X-Name-Last: Chang
Author-Name: Ying Li
Author-X-Name-First: Ying
Author-X-Name-Last: Li
Title: Firm value in commonly uncertain times: the divergent effects of corporate governance and CSR
Abstract: 
 Economic uncertainty disrupts firms’ ability to create value. Most related literature examines how various organizational characteristics affect value under extreme conditions – the global financial crisis. However, recent work in quantifying economic uncertainty now makes it possible to take a more nuanced approach in investigating the conditions under which this value reduction can be mitigated during more ‘commonly uncertain’ periods. In this paper we analyze the effects of corporate governance mechanisms and social responsibility investments on Tobin’s q across 13 years and 40 countries. Evidence suggests that shareholder-centric corporate governance policies restrict board and executive flexibility during uncertain times, and therefore stifle their ability to react effectively to adverse macroeconomic changes. We also find that CSR initiatives serve as insurance in that they preserve value under uncertainty by acting as a reservoir of social capital.
Journal: Applied Economics
Pages: 4726-4741
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597255
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597255
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4726-4741




Template-Type: ReDIF-Article 1.0
Author-Name: Ganghua Mei
Author-X-Name-First: Ganghua
Author-X-Name-Last: Mei
Author-Name: Robert McNown
Author-X-Name-First: Robert
Author-X-Name-Last: McNown
Title: Dynamic causality between the U.S. stock market, the Chinese stock market and the global gold market: implications for individual investors’ diversification strategies
Abstract: 
 This paper proposes a generalization of the prior VAR and EGARCH model to explore the linkage between returns and volatility transmissions in the U.S. stock market, the Chinese stock market, and the global gold market from 10 July 1996 to 20 July 2018. We found that past returns of the U.S. stock market can predict the current returns of the other two markets, and that significant reciprocal volatility transmission existed within and across all three markets. We further implemented average out-of-sample (OOS) forecasting to show that a risk-adjusted portfolio, such as mean-variance with sample estimator, does not outperform an equal-weighted portfolio. This provides insights for individual investors and helps to explain the ongoing disagreement in the portfolio literature concerning the effectiveness of risk-adjusted portfolios and equal-weighted portfolios when the number of assets is small.
Journal: Applied Economics
Pages: 4742-4756
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1601156
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1601156
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4742-4756




Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Méndez
Author-X-Name-First: Fabio
Author-X-Name-Last: Méndez
Title: Training opportunities in monopsonistic labour markets
Abstract: 
 This paper studies the empirical relationship between the extent of monopsonistic power observed in occupational labour markets and the training opportunities available to workers in those markets; using data from the American National Longitudinal Survey of Youth of 1979. The results reveal a positive and significant association between monopsony power and training availability. The estimated association is found to be stronger for individuals with a college degree, with longer tenure in their jobs, and higher wages. These results are consistent across several econometric specifications that control for time, occupation, and individual fixed effects.
Journal: Applied Economics
Pages: 4757-4768
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602707
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602707
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4757-4768




Template-Type: ReDIF-Article 1.0
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Alan Renwick
Author-X-Name-First: Alan
Author-X-Name-Last: Renwick
Author-Name: Bruce Greig
Author-X-Name-First: Bruce
Author-X-Name-Last: Greig
Title: Modelling the heterogeneous effects of stocking rate on dairy production: an application of unconditional quantile regression with fixed effects
Abstract: 
 This article analyses the effects of stocking rate on dairy production, using New Zealand dairy farm business data for the period 2005–2014. Unlike previous studies that assume a homogenous relationship between stocking rate and dairy production, we contribute to the literature by investigating the heterogeneous effects of stocking rate on milksolids production and applying an unconditional quantile regression model with fixed effects to control for unobserved farm-specific traits that are time invariant. The empirical results show that stocking rate exerts significant heterogeneous effects on milksolids production at different quantiles. In particular, we find that an additional increase in stocking rate (i.e. one cow/ha increase) increases milksolids production per hectare by between 17% and 25% but decreases milksolids production per cow by between 5% and 12%. In addition, we find that milking interval, dairy breed, farm labour, access to irrigation and farm location are important factors that increase milksolids production.
Journal: Applied Economics
Pages: 4769-4780
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602710
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602710
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4769-4780




Template-Type: ReDIF-Article 1.0
Author-Name: Nikeel Kumar
Author-X-Name-First: Nikeel
Author-X-Name-Last: Kumar
Author-Name: Ronald Ravinesh Kumar
Author-X-Name-First: Ronald Ravinesh
Author-X-Name-Last: Kumar
Author-Name: Arvind Patel
Author-X-Name-First: Arvind
Author-X-Name-Last: Patel
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Author-Name: Peter Josef Stauvermann
Author-X-Name-First: Peter Josef
Author-X-Name-Last: Stauvermann
Title: Modelling inbound international tourism demand in small Pacific Island countries
Abstract: 
 In this study, we estimate inbound international tourism demand models at the individual source market-destination and overall destination levels for Fiji, Cook Islands, Tonga and Vanuatu from 2002Q1 to 2016Q2 and Samoa from 2002Q4 to 2015Q3. Tourism demand is measured by visitor arrivals, tourism prices, the source country’s real GDP, tourism prices in substitute destinations, seasonality and structural breaks, all of which are considered plausible determinants. The models are estimated using the ARDL-bounds approach, structural breaks are identified using the Bai and Perron break test, and seasonality is tested using the US Census Bureau’s X-13 ARIMA-SEATS methodology. The study is important because it presents new evidence on price, income, and substitute price sensitivity, word of mouth, seasonality, and structural-breaks effects in Pacific island destinations.
Journal: Applied Economics
Pages: 1031-1047
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646887
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646887
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1031-1047




Template-Type: ReDIF-Article 1.0
Author-Name: Thi-Ngoc Anh Nguyen
Author-X-Name-First: Thi-Ngoc Anh
Author-X-Name-Last: Nguyen
Author-Name: Kiyotaka Sato
Author-X-Name-First: Kiyotaka
Author-X-Name-Last: Sato
Title: Invoice currency choice, nonlinearities and exchange rate pass-through
Abstract: 
 Estimating time-varying thresholds as a proxy for exporter’s predicted exchange rates, this study proposes a new approach to analyse possible asymmetric behaviour of exchange rate pass-through (ERPT) or pricing-to-market (PTM) in Japanese exports between yen appreciation and depreciation periods. Constructing the industry-specific nominal effective exchange rate on a contract (invoice) currency basis, we perform the multivariate threshold near-vector autoregressive (near-MTVAR) estimation and reveal a strong tendency of symmetric ERPT in the short-run, between yen appreciation and depreciation periods. From the 2000s, however, Japanese machinery exporters increased the degree of PTM even in the long-run, while other industries raised the degree of long-run ERPT, reflecting the difference of product differentiation across industries. This evidence has significant implications for the recent unresponsiveness of the Japanese trade balance to the large depreciation of the yen.
Journal: Applied Economics
Pages: 1048-1069
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1650884
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1650884
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1048-1069




Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Canarella
Author-X-Name-First: Giorgio
Author-X-Name-Last: Canarella
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Stephen M. Miller
Author-X-Name-First: Stephen M.
Author-X-Name-Last: Miller
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Title: Does real U.K. GDP have a unit root? Evidence from a multi-century perspective
Abstract: 
 We employ linear and nonlinear unit-root tests to examine the stationarity of five multi-century historical U.K. series of real output compiled by the Bank of England. Three series span 1270 to 2016 and two series span 1700 to 2016. These datasets represent the longest span of historical real output data available and, thus, provide the environment for which unit-root tests are most powerful. A key feature of our test is its simultaneous allowance for two types of nonlinearity: time-dependent (structural breaks) nonlinearity and state-dependent (asymmetric adjustment) nonlinearity. The key finding of the test, contrary to what other more popular nonlinear unit-root tests suggest, provides strong evidence that the main structure of the five series is a stationary process characterized by an asymmetric nonlinear adjustment and a permanent break affecting both the intercept and the trend. A major policy implication of this finding is fiscal and/or monetary stabilization policies have only temporary effects on the output levels of the United Kingdom.
Journal: Applied Economics
Pages: 1070-1087
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1655138
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1655138
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1070-1087




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Gausden
Author-X-Name-First: Robert
Author-X-Name-Last: Gausden
Author-Name: Mohammad S. Hasan
Author-X-Name-First: Mohammad S.
Author-X-Name-Last: Hasan
Title: Comparative performances of measures of consumer and economic sentiment in forecasting consumption: a multi-country analysis
Abstract: 
 This paper seeks to compare the capabilities of assorted measures of consumer and economic sentiment in predicting the growth of household expenditure. An analysis of quarterly data on five European countries shows that for none of these can the model which incorporates the EU’s headline consumer confidence indicator be deemed to be significantly inferior to any of its seven rivals. However, the rankings of the sentiment variables are seen to be influenced by: the proportion of total spending by households that is devoted to durable goods; and the nature of the behaviour of consumption over the forecast interval.
Journal: Applied Economics
Pages: 1088-1104
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659489
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659489
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1088-1104




Template-Type: ReDIF-Article 1.0
Author-Name: Mary J. Lopez
Author-X-Name-First: Mary J.
Author-X-Name-Last: Lopez
Author-Name: Sita Slavov
Author-X-Name-First: Sita
Author-X-Name-Last: Slavov
Title: Do immigrants delay retirement and social security claiming?
Abstract: 
 We use data from the Health and Retirement Study (HRS) to examine how immigrants’ retirement and Social Security claiming patterns compare to those of natives. We find that immigrants retire and claim Social Security at older ages than natives, an effect that is similar across immigrant ethnic groups and more pronounced among immigrants who arrived in the U.S. after age 40. We discuss and explore possible mechanisms for these differences. Hazard models suggests that these differences arise because immigrants have lower retirement and claiming hazard rates in their early 60s. We do not find evidence of an increase in the rate at which immigrants move abroad or exit the survey, compared to U.S. natives, in their late 50s through 60s, a finding that is consistent with immigrants retiring in the U.S. rather than abroad. These results are important given the rising share of older immigrants living in the U.S., and they have implications for the impact of immigration on government finances as well as the retirement security of an important subgroup of the population.
Journal: Applied Economics
Pages: 1105-1123
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659492
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659492
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1105-1123




Template-Type: ReDIF-Article 1.0
Author-Name: Xiangcai Meng
Author-X-Name-First: Xiangcai
Author-X-Name-Last: Meng
Title: The time-frequency dependence of unemployment on real input prices: a wavelet coherency and partial coherency approach
Abstract: 
 While the dependence of unemployment on real oil price and real interest rate is an important issue that has been addressed only in the time dimension, little is known about the movements of real input prices and their impact on unemployment in the time-frequency space. With a continuous wavelet coherency and partial coherency approach and monthly data of Japan and US from January 1960 to May 2017, this paper contributes to the literature by examining the characteristics of the dependence of unemployment on real input prices across frequencies and over time. The empirical results indicate that: First, a rise in real oil price leads to productivity growth slowdown and unemployment increase at the scale of 16–64 months after 1990 for Japan and 8–24 months after 2005 for US. Second, an increase in real interest rate results in higher unemployment at the 16–32-month scale before 1974 for Japan and 8–64-month scale before 2000 for US. Third, the degree of integration between labour market and energy market in US is higher than that in Japan. This study provides time-frequency evidence to the supply side hypothesis about the relationships between input prices and unemployment.
Journal: Applied Economics
Pages: 1124-1140
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659495
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659495
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1124-1140




Template-Type: ReDIF-Article 1.0
Author-Name: Komivi Afawubo
Author-X-Name-First: Komivi
Author-X-Name-Last: Afawubo
Author-Name: Mawuli K. Couchoro
Author-X-Name-First: Mawuli K.
Author-X-Name-Last: Couchoro
Author-Name: Messan Agbaglah
Author-X-Name-First: Messan
Author-X-Name-Last: Agbaglah
Author-Name: Tchapo Gbandi
Author-X-Name-First: Tchapo
Author-X-Name-Last: Gbandi
Title: Mobile money adoption and households’ vulnerability to shocks: Evidence from Togo
Abstract: 
 We investigate the determinants of mobile money adoption process and whether its use helps households in Togo to be resilient to predictable and unpredictable life events. Using ordered logit and sequential logit models, our results show that in the adoption process, households benefit from weak ties of social groups such as religious group and informal saving group for the adoption of mobile money. We equally find that being client of banks or microfinance institutions act as powerful channels from one step to another in the process. Besides, our findings reveal that households whoever use mobile money seem to be more resilient to climatic shocks such as drought, irregular rain, soil degradation, erosion and fertility reduction and to shock that affect households’ assets (non-climatic: high prices of agricultural inputs). However, the picture is more contrasted when the individuals are classified by disadvantaged groups such as rural people, women, less educated and people with low incomes.
Journal: Applied Economics
Pages: 1141-1162
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659496
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659496
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1141-1162




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Author-Name: Elías D. Saenz-Rojo
Author-X-Name-First: Elías D.
Author-X-Name-Last: Saenz-Rojo
Author-Name: Adam G. Walke
Author-X-Name-First: Adam G.
Author-X-Name-Last: Walke
Title: Yield spreads, currency movements, and recession predictability for southern border economies in the United States
Abstract: 
 Prior research establishes that the spread between long- and short-term bond yields often provides valuable information for predicting business cycle downturns. This study examines the predictive capacity of the yield spread for the United States metropolitan economies situated along the border with Mexico. Because of the location of these urban economies and various economic ties linking them with twin cities across the border, the Mexico yield spread, and the real dollar/peso exchange rate are also employed as potential recession predictors. Results suggest that a flattening of the yield curve for either country tends to increase the probability of recessions in border economies. Furthermore, declines in the real value of the peso, which are typically associated with greater cross-border manufacturing activity, are found to reduce recession likelihoods in the metropolitan economies examined on the north side of the international boundary.
Journal: Applied Economics
Pages: 2910-2921
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251556
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251556
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2910-2921




Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Holger Strulik
Author-X-Name-First: Holger
Author-X-Name-Last: Strulik
Title: Religiosity and income: a panel cointegration and causality analysis
Abstract: 
 In this article, we examine the long-run relationship between religiosity and income using retrospective data on church attendance rates for a panel of countries from 1930 to 1990. We employ panel cointegration and causality techniques to control for omitted variable and endogeneity bias and test for the direction of causality. We show that there exists a negative long-run relationship between the level of religiosity, measured by church attendance, and the level of income, measured by the log of GDP per capita. The result is robust to alternative estimation methods, potential outliers, different samples, different measures of church attendance and alternative specifications of the income variable. Long-run causality runs in both directions, higher income leads to declining religiosity and declining religiosity leads to higher income.
Journal: Applied Economics
Pages: 2922-2938
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251562
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251562
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2922-2938




Template-Type: ReDIF-Article 1.0
Author-Name: Najibullah Hassanzoy
Author-X-Name-First: Najibullah
Author-X-Name-Last: Hassanzoy
Author-Name: Shoichi Ito
Author-X-Name-First: Shoichi
Author-X-Name-Last: Ito
Author-Name: Hiroshi Isoda
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Isoda
Author-Name: Yuichiro Amekawa
Author-X-Name-First: Yuichiro
Author-X-Name-Last: Amekawa
Title: Cointegration and spatial price transmission among wheat and wheat-flour markets in Afghanistan
Abstract: 
 This article examines cointegration and spatial price transmission among Afghan wheat and flour markets as well as their linkages with those of supplier countries and global markets. Unit root tests, consistent momentum threshold autoregressive (M-TAR) models and vector error correction models (asymmetric and symmetric) are employed to achieve research objectives. The results suggest that provincial wheat and flour markets may have a long-run relationship with principal market of Kabul. Afghan wheat and flour markets may also be cointegrated with their respective global, Kazakh and Pakistani markets. While provincial wheat markets might adjust to divergence from their long-run equilibrium with Kabul wheat market, some of the provincial flour markets may not respond to deviation from their long-run equilibrium with Kabul flour market. The speed of adjustment towards the long-run Afghan–Pakistani and Afghan–Kazakh equilibrium may be faster for Afghan flour than wheat markets. The equilibrium adjustment coefficients are generally small and market imperfections may exist, however. A shock in Kabul wheat and flour markets may have long-lasting effect on the respective provincial markets whereas a shock in global wheat and Pakistani, and Kazakh wheat and flour markets might have transitory effect on the corresponding Afghan markets.
Journal: Applied Economics
Pages: 2939-2955
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251563
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251563
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2939-2955




Template-Type: ReDIF-Article 1.0
Author-Name: Laura Beaudin
Author-X-Name-First: Laura
Author-X-Name-Last: Beaudin
Title: Marriage equality and interstate migration
Abstract: 
 This study examines the impact of state imposed, marriage equality laws on interstate migration prior to the 26 June 2015 U.S. Supreme Court ruling to legalize same-sex marriage in all states. Results of the estimation of a series of probit models suggest that all head of households are more likely to leave states without marriage equality. This estimated impact is significantly larger for household heads in same-sex relationships. When examining the migration choices separately by both sex and relationship type, this result remains significant for female heads of households in different-sex relationships and male heads of households in same-sex relationships. Simulations, using the results of the probit estimations, the analysis of regional trends, and recent rebellions against the Supreme Court ruling indicate that state level, marriage equality laws may be aggravating the imbalanced distribution of same- and different-sex couple households across the country.
Journal: Applied Economics
Pages: 2956-2973
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251565
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251565
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2956-2973




Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Amir Arjomandi
Author-X-Name-First: Amir
Author-X-Name-Last: Arjomandi
Author-Name: K. Hervé Dakpo
Author-X-Name-First: K. Hervé
Author-X-Name-Last: Dakpo
Title: Banks’ efficiency and credit risk analysis using by-production approach: the case of Iranian banks
Abstract: 
 This article uses a by-production approach that integrates credit risk to monitor bank efficiency. The method overcomes the possible misspecification issues of the commonly assumed weak disposability (WDA) of undesirable outputs. In addition, our measure extends the classic by-production approach by including statistical aspects through subsampling techniques. We have also provided an algorithm to correct related infeasibilities. Using this approach, we investigate the performance of Iranian banks and credit risk management in the sector for the period 1998–2012. Non-performing loans (NPLs) have been used as an undesirable output and proxy for credit risk in our models. Based on our empirical results, although the banks generally exhibited efficiency improvements over time, their credit risk performance deteriorated considerably after the regulatory changes introduced in 2005. These findings confirm that credit quality can be monitored more actively across Iranian banks.
Journal: Applied Economics
Pages: 2974-2988
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251567
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251567
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2974-2988




Template-Type: ReDIF-Article 1.0
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Author-Name: Lola Hernandez
Author-X-Name-First: Lola
Author-X-Name-Last: Hernandez
Author-Name: Nicole Jonker
Author-X-Name-First: Nicole
Author-X-Name-Last: Jonker
Title: In love with the debit card but still married to cash
Abstract: 
 Using shopping diary survey data, we show that changing payment patterns is a challenging task; even when consumers have fallen in love with a new payment instrument, they find it hard to divorce from their old payment instrument. We find a discrepancy between how consumers prefer to pay and how they actually pay. Half of the consumers who prefer the debit card to cash don’t use the debit card to pay a majority of their point-of-sale transactions. Our regression results show that the habit of paying cash plays a significant role explaining the presence of a gap.
Journal: Applied Economics
Pages: 2989-3004
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251568
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251568
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2989-3004




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher S. Brunt
Author-X-Name-First: Christopher S.
Author-X-Name-Last: Brunt
Author-Name: John R. Bowblis
Author-X-Name-First: John R.
Author-X-Name-Last: Bowblis
Title: Health insurer market power and employer size: an empirical evaluation of insurer concentration and wages through compensating differentials
Abstract: 
 This article explores the differentiated effects of health insurer market concentration on net compensation of employees across distinct firm sizes. Consistent with the existing literature evaluating insurer market concentration and the theory of compensating differentials, we find evidence of higher premiums and reduced net compensation for employees in markets with more concentrated insurers. Furthermore, we find evidence that the magnitude of these effects is distinctly smaller for large employers. This implies that mergers of large health insurance companies may have a significant impact on small businesses but that the effect is mitigated for larger employers.
Journal: Applied Economics
Pages: 3005-3015
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251569
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251569
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:3005-3015




Template-Type: ReDIF-Article 1.0
Author-Name: David Coady
Author-X-Name-First: David
Author-X-Name-Last: Coady
Author-Name: Allan Dizioli
Author-X-Name-First: Allan
Author-X-Name-Last: Dizioli
Title: Income inequality and education revisited: persistence, endogeneity and heterogeneity
Abstract: 
 This article presents new results on the relationship between income inequality and education expansion – that is, increasing average years of schooling and reducing inequality of schooling. When dynamic panel estimation techniques are used to address issues of persistence and endogeneity, we find a large, positive, statistically significant and stable relationship between inequality of schooling and income inequality, especially in emerging and developing economies and among older-age cohorts. The relationship between income inequality and average years of schooling is positive, consistent with constant or increasing returns to additional years of schooling. While this positive relationship is small and not always statistically significant, we find a statistically significant negative relationship with years of schooling of younger cohorts. Statistical tests indicate that our dynamic estimators are consistent and that our identifying instruments are valid. Policy simulations suggest that education expansion will continue to be inequality reducing. This role will diminish as countries develop, but it could be enhanced through a stronger focus on reducing inequality in the quality of education.
Journal: Applied Economics
Pages: 2747-2761
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406659
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406659
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2747-2761




Template-Type: ReDIF-Article 1.0
Author-Name: W.D. Chen
Author-X-Name-First: W.D.
Author-X-Name-Last: Chen
Title: Detecting policy effects with wage rigidity and instability – evidence on the Taiwan labour market
Abstract: 
 With stagnant wages and growing productivity, a widening gap is becoming prevalent in global labour markets. The relationship between wages and productivity has become indeterminate, especially after the 2008 financial crisis. This article presents the phenomenon for why salary rarely follows up with productivity after an economy recovers. By using the GMM method, this study shows the interaction among wage, productivity and tightness, in which we illustrate the Taiwan labour market as an example to show how hiring system changes press wages away from an efficient allocation, causing instability and market failure. Surveying 35 labour markets for different industries, we reveal that the situation in the labour markets has drastically changed since 2008. We find that this resulted in a severe problem when the Taiwan firms got used to policies like ‘22K’, ‘fix-term contract’ and ‘unpaid leave’ programmes. These plans negatively impacted the economy and raised market failure with instability.
Journal: Applied Economics
Pages: 2762-2776
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409416
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409416
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2762-2776




Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Di Liddo
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Di Liddo
Author-Name: Cosimo Magazzino
Author-X-Name-First: Cosimo
Author-X-Name-Last: Magazzino
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Title: Government size, decentralization and growth: empirical evidence from Italian regions
Abstract: 
 The aim of this study is to empirically assess the relationship among government size, decentralization and economic growth in Italian ordinary regions. The empirical analysis, based on a panel dataset on Italian regions, provides evidence in support of the existence of an inverted U-shaped relationship between public expenditure and economic growth, that depends on the degree of fiscal decentralization. In particular, according to our estimates on the specific Italian case, the optimal degree of decentralization is around 32%, while the optimal government size value is approximately 52%.
Journal: Applied Economics
Pages: 2777-2791
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409417
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409417
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2777-2791




Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim
Author-X-Name-First: Dong-Hyeon
Author-X-Name-Last: Kim
Author-Name: Yu-Bo Suen
Author-X-Name-First: Yu-Bo
Author-X-Name-Last: Suen
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Author-Name: Joyce Hsieh
Author-X-Name-First: Joyce
Author-X-Name-Last: Hsieh
Title: Government size, government debt and globalization
Abstract: 
 This article empirically investigates the effect of globalization on government size and debt. Using panel heterogeneous cointegration techniques to a panel of developing and developed countries, it finds that globalization reduces government size and debt. In terms of components of globalization, government size is found to increase with trade openness but decreases with financial, social and political globalization. On the other hand, government debt increases with financial and trade openness but decreases with social and political globalization. The evidence is robust to different estimation methods and different samples. Our data also indicate unidirectional causality running from globalization measures to government size and debt.
Journal: Applied Economics
Pages: 2792-2803
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409418
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409418
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2792-2803




Template-Type: ReDIF-Article 1.0
Author-Name: Yingdan Mei
Author-X-Name-First: Yingdan
Author-X-Name-Last: Mei
Author-Name: Diane Hite
Author-X-Name-First: Diane
Author-X-Name-Last: Hite
Author-Name: Brent Sohngen
Author-X-Name-First: Brent
Author-X-Name-Last: Sohngen
Title: Estimation of house price differential of urban tree cover: an application of sample selection approach
Abstract: 
 Hedonic valuation of urban forest amenities tends to assume that these attributes are exogenous to sample selection, which might render the estimated results misleading. This article intends to estimate the house price differential of urban tree cover by considering the sample selection issue. The main hypothesis is that houses with high tree cover generates higher utility to consumers, and thus leads to higher house price, ceteris paribus. It may attribute to the fact that consumers self-select into purchasing houses with high- or low-density tree cover based on some unobserved systematically different characteristics. As a result, estimates from sample selection models confirm the hypothesis that purchasing a house with high-density tree cover leads to a positive price differential compared with the low-density tree cover in Napa, Los Angeles, and that buying a low-density tree cover house results in negative price differential in Napa, Los Angeles.
Journal: Applied Economics
Pages: 2804-2811
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409419
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409419
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2804-2811




Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: The value of a year’s general education for reducing the symptoms of dementia
Abstract: 
 We present a method for estimating the benefits of years of education for reducing dementia symptoms based on the cost savings that would accrue from continuing independent living rather than relying on formal or informal carers. Our method for estimating the benefits of education involves three steps: first taking a year of education and seeing how much this lowers dementia, second using this dementia reduction and estimating how much independent living is affected and third applying the change in caregiving costs associated with the independent living change. We apply our method for estimating education benefits to a National Alzheimer’s Coordinating Center sample of 17,239 participants at 32 US Alzheimer’s disease centres over the period September 2005 and May 2015.
Journal: Applied Economics
Pages: 2812-2823
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409420
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409420
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2812-2823




Template-Type: ReDIF-Article 1.0
Author-Name: Yuan Chen
Author-X-Name-First: Yuan
Author-X-Name-Last: Chen
Author-Name: Bingsheng Liu
Author-X-Name-First: Bingsheng
Author-X-Name-Last: Liu
Author-Name: Yinghua Shen
Author-X-Name-First: Yinghua
Author-X-Name-Last: Shen
Author-Name: Xueqing Wang
Author-X-Name-First: Xueqing
Author-X-Name-Last: Wang
Title: Spatial analysis of change trend and influencing factors of total factor productivity in China’s regional construction industry
Abstract: 
 Total factor productivity (TFP) is a measure of long-term economic growth and a comprehensive industry-level productivity measure. There are large gaps in China’s regional construction industry development due to unbalanced regional economy. Based on TFP measurement, this article puts forward a two-hierarchical analysis framework with coefficient of variation, Moran scatterplot and coefficient of convergence to analyse change trend of the construction industry TFP in three major regions in terms of spatial diversity, correlation and convergence. Then, the geographically weighted regression model is utilized to explore the influencing mechanism on the TFP. The results indicate the differences of the regional construction industry TFP are enlarging. There is obvious spatial correlation and heterogeneity in the regional TFP without a relatively stable space pattern. The TFP also exhibits convergence effects among three major regions. The construction industry productivity in all regions is significantly affected by economic environment, industrial organization structure and technological level. Industrial organization structure exerts the various influences on the productivity in different regions.
Journal: Applied Economics
Pages: 2824-2843
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409421
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409421
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2824-2843




Template-Type: ReDIF-Article 1.0
Author-Name: Jérôme Creel
Author-X-Name-First: Jérôme
Author-X-Name-Last: Creel
Author-Name: Paul Hubert
Author-X-Name-First: Paul
Author-X-Name-Last: Hubert
Author-Name: Mathilde Viennot
Author-X-Name-First: Mathilde
Author-X-Name-Last: Viennot
Title: The effect of ECB monetary policies on interest rates and volumes
Abstract: 
 This article assesses the transmission of ECB monetary policies, conventional and unconventional, to both interest rates and lending volumes or bond issuance for three types of different economic agents through five different markets: sovereign bonds at 6-month, 5-year and 10-year horizons, loans to nonfinancial corporations and housing loans to households, during the financial crisis, and for the four largest economies of the euro area. We look at three different unconventional tools: excess liquidity, longer-term refinancing operations and securities held for monetary policy purposes following the decomposition of the ECB’s Weekly Financial Statements. We first identify series of ECB policy shocks at the euro area aggregate level by removing the systematic component of each series and controlling for announcement effects. We second include these exogenous shocks in country-specific structural VAR, in which we control for credit demand. The main result is that only the pass-through from the ECB rate to interest rates has been effective. Unconventional policies have had uneven effects and primarily on interest rates.
Journal: Applied Economics
Pages: 4477-4501
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158923
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158923
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4477-4501




Template-Type: ReDIF-Article 1.0
Author-Name: Hana Mohelska
Author-X-Name-First: Hana
Author-X-Name-Last: Mohelska
Author-Name: Marcela Sokolova
Author-X-Name-First: Marcela
Author-X-Name-Last: Sokolova
Title: Smart, connected products change a company’s business strategy orientation
Abstract: 
 Smart, connected products have the potential to shift rivalries, opening up numerous new avenues for differentiation and value-added services. New entrants in a smart, connected world face significant new obstacles, starting with the high fixed costs of a more complex product design, embedded technology and multiple layers of new IT infrastructure. As smart, connected products expand an industry’s scope and the boundaries of competition, many companies will need to rethink their corporate purpose. As products continue to communicate and collaborate in networks, which are continuously expanding both in number and diversity, many companies will have to re-examine their core mission and value proposition. The authors present an analysis of changes that were initiated by applying new of smart and connected product technologies during creative discussions about disruptive innovation development. The objective of the article is to seek answers to the following research questions: Q 1: What is the role and significance of the new concept of products obtained as a result of substantial innovations? Q 2: How does the new concept of products impact the entrepreneurial strategy of organizations? Q 3: Does this concept trigger a change to the rules of competition?
Journal: Applied Economics
Pages: 4502-4509
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158924
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158924
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4502-4509




Template-Type: ReDIF-Article 1.0
Author-Name: Erik Mäkelä
Author-X-Name-First: Erik
Author-X-Name-Last: Mäkelä
Title: The price of the euro: evidence from sovereign debt markets
Abstract: 
 The objective of this article is to ascertain how the Economic and Monetary Union (EMU) in Europe has affected its members’ long-term government bond yields. In order to estimate the effect, this article utilizes a synthetic control approach. The main finding is that the majority of the member countries did not receive economic gains from the EMU in sovereign debt markets. Synthetic counterfactual analysis finds strong evidence that Austria, Belgium, Finland, France and the Netherlands have paid a positive and substantial euro-premium in their 10-year government bonds since the adoption of the single currency. After the most recent financial crisis, government bond yields have been higher in all member countries compared to the situation that would have occurred without the monetary unification. This article concludes that from the viewpoint of sovereign borrowing, it would be beneficial for a country to maintain its own currency and monetary policy.
Journal: Applied Economics
Pages: 4510-4525
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161714
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161714
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4510-4525




Template-Type: ReDIF-Article 1.0
Author-Name: Xun Li
Author-X-Name-First: Xun
Author-X-Name-Last: Li
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Title: Food environment and weight outcomes: a stochastic frontier approach
Abstract: 
 Food environment includes supermarkets, restaurants, warehouse clubs and supercentres and other food outlets. As such, it can affect weight outcomes through healthy food-access cost and availability, which in turn shape eating styles and habits. This article evaluates the impact of food environment on weight outcomes through a stochastic frontier approach (SFA) that comprehensively includes various components of the food environment. The model is estimated using body mass indexes (BMIs) as the dependent variable and demographics and food environment data from New England counties as explanatory variables. Empirical results indicate that supercentres and limited service restaurants are positively associated with weight gain, while full service restaurants are negatively associated with BMIs. In metropolitan counties, the presence of full and limited service restaurants has a significant impact on BMIs; in non-metropolitan counties, these establishments do not, except in those adjacent to metropolitan areas. Empirical results also validate SFA is a more appropriate specification than the standard linear model. In addition, SFA allows us to rank counties and identify targets for effective policy interventions. An ordered logit model of weight status is estimated with the same explanatory variables, confirming that the directions of the effects of the food environment components are similar.
Journal: Applied Economics
Pages: 4526-4537
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161715
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161715
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4526-4537




Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Bai
Author-X-Name-First: Xuelian
Author-X-Name-Last: Bai
Author-Name: Fangjun Wang
Author-X-Name-First: Fangjun
Author-X-Name-Last: Wang
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Title: Analyst coverage and stock return synchronicity: evidence from regulation changes in China’s IPO market
Abstract: 
 This article investigates the relation between analyst coverage and stock return synchronicity in the IPO market. Using a unique data set in China from 2005 to 2012, we find a significantly different effect of analyst coverage on synchronicity before and after the implementation of important 2009 IPO regulation changes in China. Specifically, we document that analyst coverage reduces synchronicity but that this effect is significant only after 2009. In addition, we extend this research to further distinguish the information production role of underwriter and independent analysts. We find that prior to 2009, underwriter analysts’ coverage decreases synchronicity but independent analysts’ coverage does not. However, in the post-2009 period, both types of analyst coverage are significantly and inversely associated with synchronicity. Overall, our results support analysts’ role as producers of firm-specific information in an emerging IPO market and shows that this role depends on the institutional environment.
Journal: Applied Economics
Pages: 4538-4557
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161716
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161716
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4538-4557




Template-Type: ReDIF-Article 1.0
Author-Name: Seung-Whan Choi
Author-X-Name-First: Seung-Whan
Author-X-Name-Last: Choi
Author-Name: Patrick James
Author-X-Name-First: Patrick
Author-X-Name-Last: James
Author-Name: Yitan Li
Author-X-Name-First: Yitan
Author-X-Name-Last: Li
Author-Name: Eric Olson
Author-X-Name-First: Eric
Author-X-Name-Last: Olson
Title: Presidential approval and macroeconomic conditions: evidence from a nonlinear model
Abstract: 
 Contrary to previous empirical studies that find a linear link between economic conditions and presidential approval, this study argues for and finds a nonlinear relationship. A threshold regression is used to assess potential nonlinear relationships between macroeconomic variables and presidential popularity. A quarterly data analysis for the 1960Q1–2012Q2 time period reveals that domestic factors prevail in shaping presidential approval. Most compelling is evidence of a threshold relationship involving economic conditions: When unemployment is slightly over 7%, its decline impacts significantly and favourably on presidential approval, an effect that virtually disappears below the threshold value. Change in consumer sentiment affects presidential approval in a limited way, while inflation shows no association at all. These results combine to encourage further investigation of nonlinear processes in the nexus of economics and politics.
Journal: Applied Economics
Pages: 4558-4572
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161718
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161718
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4558-4572




Template-Type: ReDIF-Article 1.0
Author-Name: Rochelle Holm
Author-X-Name-First: Rochelle
Author-X-Name-Last: Holm
Author-Name: Wales Singini
Author-X-Name-First: Wales
Author-X-Name-Last: Singini
Author-Name: Simeon Gwayi
Author-X-Name-First: Simeon
Author-X-Name-Last: Gwayi
Title: Comparative evaluation of the cost of water in northern Malawi: from rural water wells to science education
Abstract: 
 Worldwide, improved sources of drinking water are still lacking for 663 million people. With Malawi as a case study, we aim to address the scarcity of data available to understand the full cost and options of drinking water at a regional level covering both urban and rural areas. We studied options in the northern region of Malawi under the following thematic areas: urban piped water, water wells, handpump spare part supply networks, household point-of-use water treatment, the cost of entering a water business and capacity building in science education. Primary locally sourced data were collected as well as secondary publically available data. Additionally, local markets were surveyed for spare part networks. This research has shown that when looking at water resource economics in northern Malawi, it is not a monopoly and options are available at a range of costs. The data challenge policy-makers to reach the last 10% of the population still lacking improved drinking water. This will require a combination of expansion of urban piped water infrastructure, new boreholes in rural areas, increased handpump functionality rates, scale-up of household drinking water point-of-use treatment and growth of local universities to train local experts within the sector.
Journal: Applied Economics
Pages: 4573-4583
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161719
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161719
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4573-4583




Template-Type: ReDIF-Article 1.0
Author-Name: R. Alan Bowman
Author-X-Name-First: R. Alan
Author-X-Name-Last: Bowman
Author-Name: James Lambrinos
Author-X-Name-First: James
Author-X-Name-Last: Lambrinos
Author-Name: Thomas Ashman
Author-X-Name-First: Thomas
Author-X-Name-Last: Ashman
Title: Prospective measures of competitive balance application to money lines in the national hockey league
Abstract: 
 The authors have previously introduced the concept of utilizing point spreads to measure competitive balance in professional sports and a methodology for doing so. They assessed competitive balance in the National Football League and the National Basketball Association. This methodology was extended to measuring competitive balance utilizing money lines in major league baseball. This study starts by applying the same model to the money lines for the 2005–2015 seasons to measure competitive balance in the National Hockey League. It then statistically adjusts the money lines under various scenarios to estimate the effects of overtime rules and shootouts on competitive balance. Similar analyses of overtime effects on competitive balance of other sports are also completed for comparison purposes. The results indicate that competitive balance in the National Hockey League increased rather substantially during this period and that overtime rules and shootouts have had a much larger positive impact on competitive balance in the NHL than overtime approaches have had on the competitive balance of any of the other sports examined.
Journal: Applied Economics
Pages: 4925-4936
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1444262
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444262
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4925-4936




Template-Type: ReDIF-Article 1.0
Author-Name: Angela S. Bergantino
Author-X-Name-First: Angela S.
Author-X-Name-Last: Bergantino
Author-Name: Claudia Capozza
Author-X-Name-First: Claudia
Author-X-Name-Last: Capozza
Author-Name: Mauro Capurso
Author-X-Name-First: Mauro
Author-X-Name-Last: Capurso
Title: Pricing strategies: who leads and who follows in the air and rail passenger markets in Italy
Abstract: 
 In this paper, we aim at empirically uncovering the existence of price leadership in the passenger transport market, whose oligopolistic structure facilitates the strategic interaction among companies, with price being one of the principal elements of competition. The strategic interaction is particularly favoured by the fact that prices are easily observable online by all competitors. The analysis focuses on selected Italian city-pair markets that differ from one another with respect to the degree of inter- and intra-modal competition and to the characteristics of the transport services provided. We exploit this heterogeneity to study transport operators’ strategic interactions in different competitive environments. We find evidence of the existence of price leadership, even though results differ across city-pair markets. In particular, it emerges that the incumbent operator, in either the air or the rail sector, always holds the role of leader.
Journal: Applied Economics
Pages: 4937-4953
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1459039
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1459039
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4937-4953




Template-Type: ReDIF-Article 1.0
Author-Name: Leiju Qiu
Author-X-Name-First: Leiju
Author-X-Name-Last: Qiu
Author-Name: Daxuan Zhao
Author-X-Name-First: Daxuan
Author-X-Name-Last: Zhao
Title: Information and housing search: theory and evidence from China market
Abstract: 
 Asymmetric market information plays a role in households’ housing choice. To study this role, we theoretically and empirically examine the varied behaviours between better-informed and less-informed households in a housing market. The housing search model theoretically predicts that better-informed households are more likely to secure a better deal. With the data from Tianjin in China, hedonic models are calibrated to quantify the impacts of asymmetric information on housing search outcomes. The results show that the less-informed homebuyers need to pay around 1~2.3% more than those better-informed homebuyers after controlling the heterogeneity of housing units, which are consistent with the theoretical predictions. It suggests that policies and institutions to alleviate asymmetric information in housing market could improve the welfare of households.
Journal: Applied Economics
Pages: 4954-4967
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1464644
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1464644
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4954-4967




Template-Type: ReDIF-Article 1.0
Author-Name: Youngho Kang
Author-X-Name-First: Youngho
Author-X-Name-Last: Kang
Author-Name: Byung-Yeon Kim
Author-X-Name-First: Byung-Yeon
Author-X-Name-Last: Kim
Title: Immigration and economic growth: do origin and destination matter?
Abstract: 
 This article assesses the heterogeneous effects of immigration on economic growth depending on both the origin and the destination countries. Following the development of a growth model augmented by human capital of immigrants, we estimate it in a dynamic panel setup using the system-GMM estimator. We find that the growth-enhancing effect of immigration is significantly larger when immigration flows from developed to developing economies than when it does to those that include both developed and developing economies. We interpret these results as evidence of immigrants from developed countries bringing with them their advanced knowledge into the developing countries.
Journal: Applied Economics
Pages: 4968-4984
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1466987
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466987
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4968-4984




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Xie
Author-X-Name-First: Hong
Author-X-Name-Last: Xie
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: Investigating stationarity in tourist arrivals to India using panel KPSS with sharp drifts and smooth breaks
Abstract: 
 In the study, we applied panel-based stationary test that incorporates sharp as well as smooth breaks to investigate the non-stationarity of long-run tourists’ arrivals to India from major tourists’ source countries for the period 1981–2012. Results from the overall panel data provided significant evidence to support the stationarity hypothesis. However, when tourist arrivals from major source countries are considered, results indicate that tourist arrivals in India from the UK, Canada, Australia, Singapore, and Nepal were non-stationary, suggesting that tourists from these countries are all affected by economic conditions with the greatest extent. The results of the study have important policy implication for the tourist authority of India as well as business sectors in the hospitality industry for understanding and predicting market condition.
Journal: Applied Economics
Pages: 4985-4998
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1466988
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466988
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4985-4998




Template-Type: ReDIF-Article 1.0
Author-Name: Chunhua Tang
Author-X-Name-First: Chunhua
Author-X-Name-Last: Tang
Author-Name: Honglin Yang
Author-X-Name-First: Honglin
Author-X-Name-Last: Yang
Author-Name: Erbao Cao
Author-X-Name-First: Erbao
Author-X-Name-Last: Cao
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Title: Channel competition and coordination of a dual-channel supply chain with demand and cost disruptions
Abstract: 
 The impacts of simultaneous disruption of demand and cost on pricing, production and coordination of a dual-channel supply chain with one manufacturer and one retailer are examined. First, coordination of the dual-channel supply chain without disruption is proposed, by using a revenue sharing contract. Furthermore, the effects of simultaneous disruption of demand and cost on pricing, production and profit are examined from the perspective of partners and the whole supply chain. Optimal prices and quantum of production in the event of disruptions occurring are derived. Suitable changes and improvements in revenue sharing contracts can help coordinate the dual-channel supply chain with disruptions. Finally, the proposed models are further analysed through numerical examples.
Journal: Applied Economics
Pages: 4999-5016
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1466989
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466989
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4999-5016




Template-Type: ReDIF-Article 1.0
Author-Name: Rébecca Stekelorum
Author-X-Name-First: Rébecca
Author-X-Name-Last: Stekelorum
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Jamal Elbaz
Author-X-Name-First: Jamal
Author-X-Name-Last: Elbaz
Title: CSR disclosure and sustainable supplier management: a small to medium-sized enterprises perspective
Abstract: 
 The respective literatures on corporate social responsibility (CSR) disclosure and sustainable supplier management have grown in recent years, but little scholarly attention has been paid to the link between the two. Within a framework that incorporates legitimacy and neo-institutional theories, this study investigates how CSR disclosure in small to medium-sized enterprises (SMEs) influences CSR requirements and capacity building with suppliers. Based on an empirical data set of 146 000 SMEs, we test our hypotheses using multiple mediation analysis. Our results indicate that SME CSR disclosure has a positive direct effect on capacity building. When the mediating role of CSR requirements is taken into account, the study reveals that the more SMEs disclose their CSR activities, the more they require CSR from their suppliers, which in turn leads to an increase in capacity building with them. The study also suggests that the SMEs that limit their CSR requirements to the application step are more likely to build capacity with their suppliers than the SMEs that impose CSR verification. Overall, this article provides unique insights for practitioners seeking to determine the circumstances in which the SME practices of sustainable supplier management unfold in practice.
Journal: Applied Economics
Pages: 5017-5030
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1466990
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466990
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:5017-5030




Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Duarte
Author-X-Name-First: Rosa
Author-X-Name-Last: Duarte
Author-Name: Alfredo J. Mainar-Causapé
Author-X-Name-First: Alfredo J.
Author-X-Name-Last: Mainar-Causapé
Author-Name: Julio Sánchez Chóliz
Author-X-Name-First: Julio
Author-X-Name-Last: Sánchez Chóliz
Title: Domestic GHG emissions and the responsibility of households in Spain: looking for regional differences
Abstract: 
 The aim of this article is to analyze the responsibilities of Spanish households, as final consumers, for the generation of domestic greenhouse gases emissions (GHG), by region of residence, distinguishing between NUTS 1 and NUTS 2 (autonomous regions). The motivation is the process of convergence experimented by Spanish regions based on the strong economic growth experienced by the country until 2008, which could results in different emissions responsibilities because of different lifestyles and production structures. We examine in depth the relationships between a representative household in each region and its patterns of consumption. Although we do find a relationship between per capita income and regional responsibility for pollution generation, it is based on a demand scale effect, which overlaps the effects of the regional consumption patterns. Thus, in the richest regions (Madrid, Northeast, East), despite their having a less polluting pattern than other regions, the level of per capita embodied emissions is higher, due to their higher level of consumption. This scale effect, and the linkages between regional responsibilities for emissions and household consumption patterns are analyzed using linear models based on Social Accounting Matrices. The basis of the estimations is the regional emission intensity (average emission per euro spent by each type of regional home).
Journal: Applied Economics
Pages: 5397-5411
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307933
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307933
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5397-5411




Template-Type: ReDIF-Article 1.0
Author-Name: Lu Fang
Author-X-Name-First: Lu
Author-X-Name-Last: Fang
Author-Name: David A. Bessler
Author-X-Name-First: David A.
Author-X-Name-Last: Bessler
Title: Stock returns and interest rates in China: the prequential approach
Abstract: 
 This article aims to study whether interest rates help to forecast stock returns in China using the prequential approach. A bivariate VAR model and a univariate autoregressive model are examined. Out-of-sample probability forecasts, generated based on both a bootstrap-like simulation method and a nonparametric kernel-based simulation method, are evaluated from both calibration (reliability) and sorting (resolution) perspectives. The results from calibration test indicate that including interest rates in the model improves the model’s ability to issue realistic probability forecasts of stock returns (be well-calibrated). Considering stock returns also enhances the prediction of interest rates with respect to calibration. Assessment through Brier score and Yates partition suggests that the model performs better in distinguishing stock returns that actually occur and stock returns that do not occur after incorporating the influence of interest rates. Overall, interest rates help in forecasting stock returns in China in terms of both calibration and sorting.
Journal: Applied Economics
Pages: 5412-5425
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307934
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307934
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5412-5425




Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Luis Antonio Monteros
Author-X-Name-First: Luis Antonio
Author-X-Name-Last: Monteros
Title: Dynamic conditional score models of degrees of freedom: filtering with score-driven heavy tails
Abstract: 
 This article extends the quasi-autoregressive (QAR) plus Beta-t-EGARCH (exponential generalized autoregressive conditional heteroscedasticity) dynamic conditional score (DCS) model. For the new DCS model, the degrees of freedom parameter is time varying and tail thickness of the error term is updated by the conditional score. We compare the performance of QAR plus Beta-t-EGARCH with constant degrees of freedom (benchmark model) and QAR plus Beta-t-EGARCH with time-varying degrees of freedom (extended model). We use data from the Standard and Poor’s 500 (S&amp;P 500) index, and a random sample of its 150 components that are from different industries of the United States (US) economy. For the S&amp;P 500, all likelihood-based model selection criteria support the extended model, which identifies extreme events with significant impact on the US stock market. We find that for 59% of the 150 firms, the extended model has a superior statistical performance. The results suggest that the extended model is superior for those industries, which produce products that people usually are unwilling to cut out of their budgets, regardless of their financial situation. We perform an application to compare the density forecast performance of both DCS models. We perform an application to Monte Carlo value-at-risk for both DCS models.
Journal: Applied Economics
Pages: 5426-5440
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307935
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307935
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5426-5440




Template-Type: ReDIF-Article 1.0
Author-Name: Xiangling Liu
Author-X-Name-First: Xiangling
Author-X-Name-Last: Liu
Author-Name: Glenn Otto
Author-X-Name-First: Glenn
Author-X-Name-Last: Otto
Title: Housing supply elasticity in local government areas of Sydney
Abstract: 
 We report supply elasticity estimates of residential property (houses and apartments) for local government areas (LGAs) in metropolitan Sydney. Using annual data for 1991–2012, the average supply elasticity estimate across all LGAs is 0.2 for houses and 0.8 for apartments. The supply of houses is inelastic in all 43 LGAs; in contrast, apartment supply is elastic – greater than unity – in about one-third of LGAs. We develop theoretical and empirical models to explain the cross-section variation in supply elasticity across LGAs. For houses, supply elasticity is negatively related to an LGA’s population density, the time taken by a local council to process a development application and to different measures of the amount of land in an LGA that is unavailable for new housing development. In contrast to houses, variation in supply elasticity for apartments across LGAs is unrelated to any of the available regressors.
Journal: Applied Economics
Pages: 5441-5461
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307936
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307936
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5441-5461




Template-Type: ReDIF-Article 1.0
Author-Name: Nazım Ekren
Author-X-Name-First: Nazım
Author-X-Name-Last: Ekren
Author-Name: Elçin Aykaç Alp
Author-X-Name-First: Elçin
Author-X-Name-Last: Aykaç Alp
Author-Name: Mete Han Yağmur
Author-X-Name-First: Mete Han
Author-X-Name-Last: Yağmur
Title: Macroeconomic performance index: a new approach to calculation of economic wellbeing
Abstract: 
 Since the rise of the global financial crisis, there has been revival of interest in performance indexes that measure the overall stance of the economy and the wellbeing of households. Such indexes typically consist of inflation, growth, employment and long-term interest rates. We develop such an index by appending exchange rate and weighting each variable by the inverse of its variance in order to prevent the more volatile variable to dominate the index. We call this macroeconomic performance index (MPI) and argue that such an index better explains the overall economic stance especially in emerging economies. We generate the index using data from three emerging economies, namely Turkey, Brazil and Poland. Our analysis indicates that the index has a nonlinear structure and hence we analyse its behaviour using threshold autoregressive (TAR) model. It is observed that MPI captures the economic stance and main economic incidents quite successfully in each subject country. To further see the relevance of the MPI, we run TAR cointegration analysis with consumer confidence indexes (CCIs) for the subject countries with TAR cointegration test. The results indicate long-term relationship between the MPI and CCI in all three countries.
Journal: Applied Economics
Pages: 5462-5476
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1310996
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1310996
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5462-5476




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Hayo
Author-X-Name-First: Bernd
Author-X-Name-Last: Hayo
Author-Name: Matthias Uhl
Author-X-Name-First: Matthias
Author-X-Name-Last: Uhl
Title: Taxation and consumption: evidence from a representative survey of the German population
Abstract: 
 Using a representative survey of the German population, this article studies self-reported individual consumption responses to a recent exogenous payroll tax reduction. About 55% of the respondents report that they spend the extra money, indicating considerable potential for tax changes to affect consumption and economic activity. Our analysis of the socio-demographic and economic covariates of consumption responses suggests, among other effects, that interest rates are related to consumption responses to tax changes, and that households with higher income have a higher propensity to consume.
Journal: Applied Economics
Pages: 5477-5490
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1310997
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1310997
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5477-5490




Template-Type: ReDIF-Article 1.0
Author-Name: Arif Billah Dar
Author-X-Name-First: Arif Billah
Author-X-Name-Last: Dar
Author-Name: Debasish Maitra
Author-X-Name-First: Debasish
Author-X-Name-Last: Maitra
Title: Is gold a weak or strong hedge and safe haven against stocks? Robust evidences from three major gold-consuming countries
Abstract: 
 In this article, we test nexus between gold and stocks for the three major gold consumers by using the range of methodologies. First, we assess if there is any time-varying correlation between the two assets. We fail to find any significant time-varying correlation between gold and stock returns in India and the United States. Second, we attempted to investigate the safe-haven property of gold by analysing the decile-wise conditional correlation between stock returns and gold returns at different deciles of stock returns. Third, in order to test the robustness of the results drawn from the decile-wise correlation, we employ wavelet coherence in continuous wavelet framework to test the time and frequency varying nexus between the pair of assets. The range of methodologies employed seems to indicate the weak hedge and safe haven-property of gold for stocks.
Journal: Applied Economics
Pages: 5491-5503
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1310998
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1310998
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5491-5503




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: i-i
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1347382
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1347382
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:i-i




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: 3230-3230
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1417960
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1417960
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3230-3230




Template-Type: ReDIF-Article 1.0
Author-Name: Tiago Lopes Afonso
Author-X-Name-First: Tiago Lopes
Author-X-Name-Last: Afonso
Author-Name: António Cardoso Marques
Author-X-Name-First: António Cardoso
Author-X-Name-Last: Marques
Author-Name: José Alberto Fuinhas
Author-X-Name-First: José Alberto
Author-X-Name-Last: Fuinhas
Author-Name: e Marco Mano Saldanha
Author-X-Name-First: e Marco Mano
Author-X-Name-Last: Saldanha
Title: Interactions between electricity generation sources and economic activity in two Nord Pool systems. Evidence from Estonia and Sweden
Abstract: 
 The interactions between electricity sources and industrial production in Estonia and Sweden are analysed based on monthly data. The availability of data defines the time spans from January 2010 to September 2015 for Sweden and from April 2010 to December 2014 for Estonia. These countries are particularly interesting to study because of their dissimilar generation mix. Estonia’s generation mix is based on oil shale, while Sweden’s is based on nuclear plants and hydroelectricity. In short, both countries’ energy mixes are based on endogenous natural resources. The ARDL model was applied, allowing the long-run and short-run effects to be captured. The results prove that economic growth is sustained by natural endogenous resources. Estonia should continue to improve the usage of renewable energies, using fossil sources in support, in order to reduce emissions and to meet international environmental commitments. Sweden should promote the efficient usage of various renewable sources.
Journal: Applied Economics
Pages: 3115-3127
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418074
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418074
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3115-3127




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Pierre Allegret
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Allegret
Author-Name: Audrey Allegret
Author-X-Name-First: Audrey
Author-X-Name-Last: Allegret
Title: The role of international reserves holding in buffering external shocks
Abstract: 
 An extended literature analyses the accumulation foreign exchange holding observed in many developing and emerging countries since the 2000s. Empirical studies on the self-insurance motive suggest that high-reserves economies are more resilient to financial crises and to international capital inflows volatility. They show also that pre-crisis foreign reserve accumulation explains post-crisis growth. However, some papers suggest that the relationship between international reserves holding and reduced vulnerability is nonlinear, meaning that reserve holding is subject to diminishing returns. This article devotes more attention to the potential nonlinear relationship between the foreign reserves holding and macroeconomic resilience to shocks. For a sample of nine emerging economies, we assess to what extent the accumulation of international reserves allows to mitigate negative impacts of external shocks on the output gap. While a major part of the literature focuses on the global financial crisis, we investigate this question by considering two sub-periods: 1995–2003 and 2004–2013. We implement threshold VAR model in which the structure is allow to change if the threshold variable crosses a certain estimated threshold. We find that the effectiveness of reserve holding to improve the resilience of domestic economies to shocks has increased over time. Hence, the diminishing returns of foreign reserve holding stressed in the previous literature must be qualified.
Journal: Applied Economics
Pages: 3128-3147
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418075
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418075
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3128-3147




Template-Type: ReDIF-Article 1.0
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Laura Sauci
Author-X-Name-First: Laura
Author-X-Name-Last: Sauci
Title: Long memory and mean reversion in real exchange rates in Latin America
Abstract: 
 This article examines the long-run Purchasing Power Parity (PPP) hypothesis for 12 Latin American Real Effective Exchange Rates (REERs) using fractional integration techniques. The empirical results, applying parametric approaches, provide evidence of mean reversion in the REERs in the cases of Nicaragua, Belize, Costa Rica, Guyana and Paraguay and lack of it for the remaining seven countries. Employing semiparametric methods, the evidence of mean reversion covers the following countries: Belize, the Dominican Republic, Ecuador and Mexico. Thus, only for Belize and Guyana do we obtain consistent evidence of mean reversion in the real exchange rates. At the other extreme, lack of mean reversion, and thus, lack of PPP, is obtained with both methods in Bolivia, Brazil, Colombia and Venezuela. For the remaining six countries, the results are ambiguous. The results for the PPP theory in Belize and Guyana may show the importance of promoting policies based on exchange rate flexibility and economic liberalization to reach a long-run stability scenario that leads to greater international competitiveness and lower external vulnerability.
Journal: Applied Economics
Pages: 3148-3155
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418076
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418076
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3148-3155




Template-Type: ReDIF-Article 1.0
Author-Name: Hui Shi
Author-X-Name-First: Hui
Author-X-Name-Last: Shi
Author-Name: Chuhui Li
Author-X-Name-First: Chuhui
Author-X-Name-Last: Li
Title: Does weight status affect academic performance? Evidence from Australian children
Abstract: 
 This article investigates the impact of children’s weight status on their academic performance using the Longitudinal Survey of Australian Children. Considering the endogeneity of the weight status variable (obesity or overweight), to obtain consistent estimates of its impact, we use the body mass index of biological parents as instrumental variables. The two-stage least square estimation shows that obesity or overweight has a significant negative impact on academic performance. Furthermore, the effect of child weight status is different across grade levels. Overweight has a larger negative impact on academic performance for senior year students, especially on numeracy.
Journal: Applied Economics
Pages: 3156-3170
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418077
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418077
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3156-3170




Template-Type: ReDIF-Article 1.0
Author-Name: Su Chi-Wei
Author-X-Name-First: Su
Author-X-Name-Last: Chi-Wei
Author-Name: Xiao-Cui Yin
Author-X-Name-First: Xiao-Cui
Author-X-Name-Last: Yin
Author-Name: Ran Tao
Author-X-Name-First: Ran
Author-X-Name-Last: Tao
Author-Name: Haigang Zhou
Author-X-Name-First: Haigang
Author-X-Name-Last: Zhou
Title: Are housing prices improving GDP or vice versa? A cross-regional study of China
Abstract: 
 This study applies the bootstrap panel Granger causality test to examine the relationship between housing prices (HPs) and GDP across provinces in China. Empirical results show that HPs Granger cause GDP in the eastern region and in most provinces of the central region. Rapid industrialization and urbanization in the eastern region and the low-cost advantages of the central region promote housing investment and significantly affect GDP. However, GDP has no influence on HPs in the eastern region due to insufficient land supply, housing speculation and HPs deviating from the economic fundamentals. HPs do not Granger cause GDP in the western region because it is less attractive for housing investment. Also, GDP Granger causes HPs in the central and western regions that the economy can influence HPs. These findings could help the government formulate reasonable regional policies for the development of the housing market and economic growth.
Journal: Applied Economics
Pages: 3171-3184
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418078
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418078
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3171-3184




Template-Type: ReDIF-Article 1.0
Author-Name: Cheng Cheng
Author-X-Name-First: Cheng
Author-X-Name-Last: Cheng
Title: Greek membership and academic performance: evidence from student-level data
Abstract: 
 Compared to other inputs of the ‘education production function’, less is known about the effect of social and non-classroom choices. This study examines whether joining fraternities and sororities improves academic performance. In order to account for the self-selection bias of Greek membership, I exploit plausibly exogenous cross-class variation in Greek student composition at the course-instructor level. My estimate shows that a 10 percentage point increase in Greek student composition translates to a 0.02 standard deviation increase in course grade for Greek students relative to non-Greek students. I further find that this effect is driven largely by low-achieving and middle-achieving white Greek members.
Journal: Applied Economics
Pages: 3185-3195
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418079
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418079
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3185-3195




Template-Type: ReDIF-Article 1.0
Author-Name: Yang Hu
Author-X-Name-First: Yang
Author-X-Name-Last: Hu
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Title: Bubbles in US regional house prices: evidence from house price–income ratios at the State level
Abstract: 
 We investigate the presence of bubbles in the US house price-income ratio at the State level by applying the recent time series-based econometric test to data from January 1975 to December 2014. We find evidence of bubbles in several States in the 1980s (i.e. California, Hawaii, Massachusetts, New York, etc.), which coincides with some existing studies that investigate housing bubbles or booms and busts using a range of alternative approaches. Our results show the existence of a housing bubble that originates in the early 2000s and collapses in the mid-2000s in more than 20 States and the District of Columbia concluding that the bubbles of the 2000s were more widespread than the 1980s, which is of special interest and importance. Our results seem to be in agreement with the talk given by Alan Greenspan in 2005, who suggest no sign of a nationwide housing bubble but a lot of local bubbles. We also study the importance of the regression model specification with/without an intercept and the regression model with an intercept could lead to false-positive identification of bubbles.
Journal: Applied Economics
Pages: 3196-3229
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418080
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418080
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3196-3229




Template-Type: ReDIF-Article 1.0
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Huy N. A. Pham
Author-X-Name-First: Huy N. A.
Author-X-Name-Last: Pham
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: The sectoral effects of Brexit on the British economy: early evidence from the reaction of the stock market
Abstract: 
 We investigate the impact of the outcome of the EU referendum (Brexit) on various sectors of the British economy over the period June–July 2016. Using the event study methodology, we assess the effects of Brexit, relative to what had been anticipated, as measured by abnormal returns (ARs). The results show that the banking and travel and leisure sectors were affected negatively, with a cumulative AR of −15.37% for the banking sector. We observe that Brexit has a mixed effect on ARs with apparent sector-by-sector differences.
Journal: Applied Economics
Pages: 2508-2514
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1240352
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240352
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2508-2514




Template-Type: ReDIF-Article 1.0
Author-Name: Raquel Fonseca
Author-X-Name-First: Raquel
Author-X-Name-Last: Fonseca
Author-Name: Natalia Utrero
Author-X-Name-First: Natalia
Author-X-Name-Last: Utrero
Title: Financial markets and firm size: The role of employment protection laws and barriers to entrepreneurship
Abstract: 
 This article provides evidence on the institutional determinants of firm size for the period 1980–1998. Using a comprehensive longitudinal database across 29 industrial sectors in 15 Organisation for Economic Co-operation and Development (OECD) countries, we study how labour regulations and barriers to entrepreneurship (BE) affect industrial organization in the presence of capital market frictions. We show that strict employment protection laws (EPL) and high BE negatively affect firm size in sectors that are more dependent on external funds. Our findings demonstrate that the interaction between market regulations and financial market imperfections help to explain some of the differences in firm structure across countries.
Journal: Applied Economics
Pages: 2515-2531
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243209
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243209
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2515-2531




Template-Type: ReDIF-Article 1.0
Author-Name: Madhu S. Mohanty
Author-X-Name-First: Madhu S.
Author-X-Name-Last: Mohanty
Author-Name: Aria Golestani
Author-X-Name-First: Aria
Author-X-Name-Last: Golestani
Title: How is the worker’s weekly hour related to wage over the life cycle? The U.S. evidence
Abstract: 
 The current study estimates the relationship between weekly hours and weekly wage over the life cycle of a representative sample of workers. Recognizing the endogeneity of these two variables, the study estimates both equations in a simultaneous equations framework and demonstrates that the relationship between weekly hours and weekly wage is not uniform over the worker’s life cycle. These two variables are negatively related when the workers are young and have a positive relationship when they are matured adults. This conclusion remains valid for both men and women. Our robustness check further confirms that workers respond to wage increases differently at different stages of their working career. This has interesting policy implications. Any policy to influence the worker’s hours decision through wage incentive must consider the stage of his/her working career.
Journal: Applied Economics
Pages: 2532-2544
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243210
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243210
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2532-2544




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Bredemeier
Author-X-Name-First: Christian
Author-X-Name-Last: Bredemeier
Author-Name: Roland Winkler
Author-X-Name-First: Roland
Author-X-Name-Last: Winkler
Title: The employment dynamics of different population groups over the business cycle
Abstract: 
 We examine differences in employment dynamics across population groups using Bayesian vector autoregressions. We document that groups who are particularly strongly affected by business-cycle fluctuations (males, young people, non-whites, the less educated, and workers in blue-collar occupations) also tend to be affected early in the build-up of a boom or bust. We further identify the drivers of the different cyclicalities across population groups. Supply shocks seem to be most important for the heterogeneous employment fluctuations and particularly for the early effects of recessions and booms on the most affected groups. Dynamics in sectoral activity and in hiring rates can help to understand our findings.
Journal: Applied Economics
Pages: 2545-2562
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243211
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243211
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2545-2562




Template-Type: ReDIF-Article 1.0
Author-Name: Dmitri Romanov
Author-X-Name-First: Dmitri
Author-X-Name-Last: Romanov
Author-Name: Aviad Tur-Sinai
Author-X-Name-First: Aviad
Author-X-Name-Last: Tur-Sinai
Author-Name: Galit Eizman
Author-X-Name-First: Galit
Author-X-Name-Last: Eizman
Title: Overeducation, job mobility and earnings mobility among holders of first degrees
Abstract: 
 Overeducation has been researched extensively for nearly three decades, but some major issues in regard to it are still topics of ongoing debate. By using a panel data, that combines a survey of two cohorts of Israeli first-degree holders and data from administrative sources on jobs and wages, we examine the contribution of job turnover, cognitive abilities and continuing graduate studies to the likelihood of overeducation and wage dynamics. The study produces four main findings. First, rapid job-switching makes a negative contribution to the increase in employee’s wage and there is a negative correlation between two variables – an employee’s tenure and the number of past employers in the years after the completion of degree studies – and the probability of being overeducated. Second, the contribution of the individual’s cognitive abilities and quantitative reasoning skills to the likelihood of becoming overeducated is negative. Third, the wages of overeducated employees are some 11% lower and rise more slowly than the wages of those whose level of schooling corresponds to their jobs; this outcome may be interpreted as indicating that the ‘scars’ of being overeducated tend to be long-lasting. Fourth, the overeducated workers have lower propensity to continue to advanced academic studies.
Journal: Applied Economics
Pages: 2563-2578
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243213
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243213
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2563-2578




Template-Type: ReDIF-Article 1.0
Author-Name: Ye Li
Author-X-Name-First: Ye
Author-X-Name-Last: Li
Author-Name: Pierre Perron
Author-X-Name-First: Pierre
Author-X-Name-Last: Perron
Author-Name: Jiawen Xu
Author-X-Name-First: Jiawen
Author-X-Name-Last: Xu
Title: Modelling exchange rate volatility with random level shifts
Abstract: 
 Recent literature has shown that the volatility of exchange rate returns displays long memory features. It has also been shown that if a short memory process is contaminated by level shifts, the estimate of the long memory parameter tends to be upward biased. In this article, we directly estimate a random level shift model to the logarithm of the absolute returns of five exchange rates series, in order to assess whether random level shifts (RLSs) can explain this long memory property. Our results show that there are few level shifts for the five series, but once they are taken into account the long memory property of the series disappears. We also provide out-of-sample forecasting comparisons, which show that, in most cases, the RLS model outperforms popular models in forecasting volatility. We further support our results using a variety of robustness checks.
Journal: Applied Economics
Pages: 2579-2589
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243214
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243214
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2579-2589




Template-Type: ReDIF-Article 1.0
Author-Name: Jian Zhou
Author-X-Name-First: Jian
Author-X-Name-Last: Zhou
Title: Forecasting REIT volatility with high-frequency data: a comparison of alternative methods
Abstract: 
 Volatility is a crucial input for many financial applications, including asset allocation, risk management and option pricing. Over the last two decades the use of high-frequency data has greatly advanced the research on volatility modelling. This article makes the first attempt in the real estate literature to employ intraday data for volatility forecasting. We examine a wide range of commonly used methods and apply them to several major global REIT markets. Our findings suggest that the group of reduced form methods deliver the most accurate one-step-ahead forecast for daily REIT volatility. They outperform their GARCH-model-based counterparts and two methods using low-frequency data. We also show that exploiting intraday information through GARCH does not necessarily yield incremental precision for forecasting REIT volatility. Our results are relatively robust to the choice of realized measure of volatility and the length of evaluation period.
Journal: Applied Economics
Pages: 2590-2605
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243215
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243215
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2590-2605




Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: The econometrics of the environmental Kuznets curve: an illustration using Australian CO2 emissions
Abstract: 
 Four econometric issues associated with the estimation and testing of the environmental Kuznets curve (EKC) are considered: (i) model specification with respect to the order of the polynomial, (ii) model specification with respect to the use of linear or log-linear specifications, (iii) integration and cointegration considerations, and (iv) missing variables and time trends. These issues are examined in reference to Australian data on four measures of CO2 emissions and three measures of per capita income. While evidence is provided for an inverted U-shaped EKC, the results cannot be generalized. It is concluded that without the use of sensitivity analysis, the results are typically fragile.
Journal: Applied Economics
Pages: 4927-4945
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296552
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296552
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4927-4945




Template-Type: ReDIF-Article 1.0
Author-Name: Fabio C. Bagliano
Author-X-Name-First: Fabio C.
Author-X-Name-Last: Bagliano
Author-Name: Claudio Morana
Author-X-Name-First: Claudio
Author-X-Name-Last: Morana
Title: It ain’t over till it’s over: A global perspective on the Great Moderation-Great Recession interconnection
Abstract: 
 A large-scale Factor-Augmented Vector Autoregressive (FAVAR) model of the global economy is used to investigate the determinants of the Great Moderation and the transition to the Great Recession (1986–2010). Beside the global-economy perspective, the model presents the novel feature of a broad range of included financial variables and risk factor measures. The results point to various mechanisms related to the global monetary policy stance (Great Deviation), financial institutions’ risk-taking behaviour (Great Leveraging) and global imbalances (savings glut), determining aggregate fluctuations. Finally, an out-of-sample forecasting exercise provides evidence against the ‘end of the Great Moderation’ view, showing that the timing, though not the dimension of the Great Recession episode (2008–2010), was predictable on the basis of the same macroeconomic mechanisms at work over the two previous decades.
Journal: Applied Economics
Pages: 4946-4969
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296553
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296553
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4946-4969




Template-Type: ReDIF-Article 1.0
Author-Name: Seon-Woong Kim
Author-X-Name-First: Seon-Woong
Author-X-Name-Last: Kim
Author-Name: B. Wade Brorsen
Author-X-Name-First: B. Wade
Author-X-Name-Last: Brorsen
Title: Forecasting urea prices
Abstract: 
 Managing urea price risk is a concern of firms in the urea supply chain due to high price volatility and relatively slow transportation. This study develops urea price forecasting models as a way to reduce price risk. The forecasting models are evaluated based on multiple accuracy measures and compared to Fertilizer Week, a commercial forecast. An autoregressive model with exogenous variables (ARX) using a window size of 48 months outperforms the other models. No statistical difference exists between our best model and Fertilizer Week. Encompassing tests show that a combination model using the two models outperforms using Fertilizer Week forecasts alone. A combined model using 66.8% of $$ Fertilzer\, Week $$FertilzerWeek
and 33.2% of the ARX brings about the minimum forecast error.
Journal: Applied Economics
Pages: 4970-4981
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296554
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296554
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4970-4981




Template-Type: ReDIF-Article 1.0
Author-Name: Eskil Heinesen
Author-X-Name-First: Eskil
Author-X-Name-Last: Heinesen
Author-Name: Christophe Kolodziejczyk
Author-X-Name-First: Christophe
Author-X-Name-Last: Kolodziejczyk
Author-Name: Jacob Ladenburg
Author-X-Name-First: Jacob
Author-X-Name-Last: Ladenburg
Author-Name: Ingelise Andersen
Author-X-Name-First: Ingelise
Author-X-Name-Last: Andersen
Author-Name: Karsten Thielen
Author-X-Name-First: Karsten
Author-X-Name-Last: Thielen
Title: Return to work after cancer and pre-cancer job dissatisfaction
Abstract: 
 We investigate the association between pre-cancer job dissatisfaction and return-to-work probability 3 years after a cancer diagnosis. We use a Danish data set combining administrative data and a survey to breast and colon cancer survivors. We find that the return-to-work probability has a negative correlation with pre-cancer job dissatisfaction with mental demands (where the correlation is driven by the high-educated) and with physical demands and the superior (where the correlation is driven by the low-educated). Educational gradients in the probability of returning to work after cancer are not significantly affected by controlling for pre-cancer job dissatisfaction and pre-cancer ability to work.
Journal: Applied Economics
Pages: 4982-4998
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296555
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296555
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4982-4998




Template-Type: ReDIF-Article 1.0
Author-Name: Laetitia Lepetit
Author-X-Name-First: Laetitia
Author-X-Name-Last: Lepetit
Author-Name: Celine Meslier
Author-X-Name-First: Celine
Author-X-Name-Last: Meslier
Author-Name: Leo Indra Wardhana
Author-X-Name-First: Leo Indra
Author-X-Name-Last: Wardhana
Title: Reducing agency conflicts through bank dividend payout decisions: the role of opacity and ownership structure
Abstract: 
 We empirically examine whether banks’ dividend decisions are influenced by their degree of opacity and ownership structure. We find that banks with concentrated ownership structure pay lower dividends when they have high degrees of opacity, in line with the hypothesis that majority shareholders pay lower dividends to extract higher levels of private benefits. We do not observe such expropriation behaviour from managers in widely held banks. Further analysis shows that higher levels of shareholder protection and stronger supervisory regimes help to constrain opportunistic behaviour of majority shareholders. Our findings have critical policy implications for the Basel 3 implementation of restrictions on dividend payouts.
Journal: Applied Economics
Pages: 4999-5026
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296556
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296556
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4999-5026




Template-Type: ReDIF-Article 1.0
Author-Name: Karthik Raju
Author-X-Name-First: Karthik
Author-X-Name-Last: Raju
Author-Name: Saravanan Rangaswamy
Author-X-Name-First: Saravanan
Author-X-Name-Last: Rangaswamy
Title: Forecasting volatility in the Indian equity market using return and range-based models
Abstract: 
 In this article, we assess the time-varying volatility of the National Stock Exchange in the Indian equity market using unconditional estimators and asymmetric conditional econometric models. The volatility estimate and forecast is computed from the interday return and intraday range-based data of the exchange’s flagship index, CNX NIFTY, for the time period spanning 1 January 2009 through 31 December 2013. These are our findings: First, we determine that the time-varying volatility of the index is asymmetric with qualities of stationarity and leptokurtic distribution. Second, the one-step-ahead volatility forecast derived from the univariate time series parameters through the GJR-GARCH ​​​​​process indicates that the model evaluation criteria of the autoregressive process tends towards range-based models vis-à-vis a return-based model. The validity of this methodology is further analysed with the superior predictive ability test, the outcome of which supports the use of range-based conditional models. Finally, among the evaluated range-based model variants, the model confidence set procedure favours the Yang–Zhang estimator as being better suited to forecast the exchange’s volatility than the ones by Parkinson, Garman–Klass and Rogers–Satchell.
Journal: Applied Economics
Pages: 5027-5039
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299099
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299099
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:5027-5039




Template-Type: ReDIF-Article 1.0
Author-Name: Michael R. Strain
Author-X-Name-First: Michael R.
Author-X-Name-Last: Strain
Author-Name: Douglas A. Webber
Author-X-Name-First: Douglas A.
Author-X-Name-Last: Webber
Title: High school experiences, the gender wage gap, and the selection of occupation
Abstract: 
 Using within-high-school variation and controlling for a measure of cognitive ability, this article finds that high-school leadership experiences explain a significant portion of the residual gender wage gap and selection into management occupations. Our results imply that high-school leadership could build non-cognitive, productive skills that are rewarded years later in the labour market and that explain a portion of the systematic difference in pay between men and women. Alternatively, high-school leadership could be a proxy variable for personality characteristics that differ between men and women and that drive higher pay and becoming a manager. Because high-school leadership experiences are exogenous to direct labour market experiences, our results leave less room for direct labour market discrimination as a driver of the gender wage gap and occupation selection.
Journal: Applied Economics
Pages: 5040-5049
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299100
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299100
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:5040-5049




Template-Type: ReDIF-Article 1.0
Author-Name: Hildegunn Kyvik Nordås
Author-X-Name-First: Hildegunn Kyvik
Author-X-Name-Last: Nordås
Title: What drives trade in services? Lessons from the Nordics
Abstract: 
 This article makes an empirical assessment of the relative importance of non-actionable institutional and cultural factors and actionable policy measures for services market integration, using the Nordic countries as a case study. The Nordics are an ideal case as they are perceived to be a cluster of similar countries, but they have chosen different relations to the European Union (EU) and the rest of the world. First, comparing actionable and non-actionable determinants of services trade, I find that policy-determined free trade agreements (FTAs) boost services trade by 75% and a single market by an additional 45%, while the accumulated effect of all standard non-actionable shared geographical, institutional and cultural features (sharing a land border, language, colonial past and legal origin) almost triples services trade. Having controlled for all these determinants, intra-Nordic trade in services is more than three times the predicted value. An unexplained Nordic bias of this magnitude indicates that full integration of services markets may rely on deeper institutional and cultural factors.
Journal: Applied Economics
Pages: 3532-3545
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430334
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430334
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3532-3545




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph McCormack
Author-X-Name-First: Joseph
Author-X-Name-Last: McCormack
Author-Name: Yaniv Reingewertz
Author-X-Name-First: Yaniv
Author-X-Name-Last: Reingewertz
Title: Politics, partisanship and the power to veto: does gubernatorial line-item veto power affect state budgets?
Abstract: 
 How does line-item veto (LIV) power affect a governor’s ability to structure the state budget? Is LIV power only relevant as a partisan tool? Is it still relevant when the state legislature can override the veto? We use a rich disaggregated data set to test the effect of the gubernatorial LIV on state budgets, controlling for political factors such as party affiliation of the governor and legislature, minority status of the governor, and the legislature’s ability to override a LIV. Our results suggest that LIV power has very weak influence, if any, on governors’ ability to influence state budgets.
Journal: Applied Economics
Pages: 3546-3559
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430335
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430335
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3546-3559




Template-Type: ReDIF-Article 1.0
Author-Name: Nusrate Aziz
Author-X-Name-First: Nusrate
Author-X-Name-Last: Aziz
Author-Name: Belayet Hossain
Author-X-Name-First: Belayet
Author-X-Name-Last: Hossain
Author-Name: Irfan Mowlah
Author-X-Name-First: Irfan
Author-X-Name-Last: Mowlah
Title: Does the quality of political institutions affect intra-industry trade within trade blocs? The ASEAN perspective
Abstract: 
 There has been a renewed resolve for deeper integration and cooperation within ASEAN. Intra-industry trade (IIT) is often viewed as a way of achieving economic as well as political integration. This article tests for the effect that political regime and governance may have on the intensity of IIT. We particularly examine if quality of political institutions which includes corruption and democracy indices as well as economic factors comprising corporate tax rate, regional FDI flow, flexibility of exchange rate regime, size of the market, economic distance affect the intensity of horizontal and vertical IIT. The study finds that control of corruption and good governance both increase the vertical IIT but not the horizontal IIT. The study further finds that intra-economy FDI flow, stable exchange rate regime, market size and proximity positively affect IIT within the trade bloc. However the negative effect of corporate tax rate suggests that if countries were to coordinate their tax policies, they could avoid harmful tax competition and promote IIT across their borders. The findings regarding the effect those economic and political factors have on the intensity of IIT certainly warrants the attention of policy makers and researchers alike.
Journal: Applied Economics
Pages: 3560-3574
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430336
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430336
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3560-3574




Template-Type: ReDIF-Article 1.0
Author-Name: Roger White
Author-X-Name-First: Roger
Author-X-Name-Last: White
Author-Name: David Buehler
Author-X-Name-First: David
Author-X-Name-Last: Buehler
Title: A closer look at the determinants of international migration: decomposing cultural distance
Abstract: 
 Using a modified gravity model and three measures of cultural distance, we employ the zero-inflated negative binomial estimation technique to examine the impact of cultural distance on international migration flows. We confirm the finding of prior studies that there exists a negative relationship between composite measures of cultural distance and immigrant flows. Extending the literature, we decompose our composite cultural distance measures into their component dimensions to examine potential variability in the influences of individual dimensions on international migration. We find the cultural dimensions that reflect individualism, uncertainty avoidance, and perceived gender roles are typically more influential in determining immigrant flows than are other cultural dimensions.
Journal: Applied Economics
Pages: 3575-3595
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430337
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430337
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3575-3595




Template-Type: ReDIF-Article 1.0
Author-Name: Jian-qing Zhang
Author-X-Name-First: Jian-qing
Author-X-Name-Last: Zhang
Author-Name: Tingting Chen
Author-X-Name-First: Tingting
Author-X-Name-Last: Chen
Author-Name: Fei Fan
Author-X-Name-First: Fei
Author-X-Name-Last: Fan
Author-Name: Song Wang
Author-X-Name-First: Song
Author-X-Name-Last: Wang
Title: Empirical research on time-varying characteristics and efficiency of the Chinese economy and monetary policy: evidence from the MI-TVP-VAR model
Abstract: 
 Based on the general time-varying parameter vector autoregressive model and data mining technology, this study proposes a new extension mixed innovation time-varying parameter stochastic volatility vector autoregressive model and investigates time-varying characteristics and efficiencies of different shock effects on China’s monetary policy towards inflation and GDP. Using sample monthly data for 1979–2014, we utilize typical time points to illustrate the mechanisms between different economic variables via the Markov Chain Monte Carlo method and impulse response function. The empirical results show that the monetary transmission mechanism in China can be effective in the real economy, but with delay and efficiency leakage. The average delay and maximum efficiency can be measured through the MI model, which can capture accurate information of economic variables, effectively improving the precision of macroeconomic regulation and control. Meanwhile, the difference between the impacts of different channels is obvious; while the impact of interest rates is not significant, the impact of stock market is significant. The action mechanism between GDP and the inflation rate undergoes a gradual structural change, evidently displaying time-varying characteristics and a gradually weakening impact over time.
Journal: Applied Economics
Pages: 3596-3613
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430338
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3596-3613




Template-Type: ReDIF-Article 1.0
Author-Name: Ulrich Gunter
Author-X-Name-First: Ulrich
Author-X-Name-Last: Gunter
Author-Name: M. Graziano Ceddia
Author-X-Name-First: M. Graziano
Author-X-Name-Last: Ceddia
Author-Name: David Leonard
Author-X-Name-First: David
Author-X-Name-Last: Leonard
Author-Name: Bernhard Tröster
Author-X-Name-First: Bernhard
Author-X-Name-Last: Tröster
Title: Contribution of international ecotourism to comprehensive economic development and convergence in the Central American and Caribbean region
Abstract: 
 Drawing on the positive experience from Costa Rica, the study examines whether international ecotourism makes a significant contribution to comprehensive economic development for the Central American and Caribbean region and contributes to comprehensive economic convergence. Following a standard empirical growth model, a dynamic panel regression model is estimated using time-series data from 1995 until 2012 for a cross section of seven countries. The interaction of international tourism and various established sustainability indicators is employed allowing ecotourism to be consistently quantified across countries, while numerous country-specific structural characteristics are controlled for. The estimation results show that international ecotourism has a statistically significant positive effect on both traditional economic development (real GDP per capita) and comprehensive economic development (adjusted net savings; ANS per capita), which is a measure of a society’s potential future well-being, thus providing evidence in support of the tourism-led growth hypothesis and pointing towards an important role for ecotourism in driving comprehensive economic convergence.
Journal: Applied Economics
Pages: 3614-3629
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430339
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430339
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3614-3629




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Francesco Salustri
Author-X-Name-First: Francesco
Author-X-Name-Last: Salustri
Author-Name: Vittorio Pelligra
Author-X-Name-First: Vittorio
Author-X-Name-Last: Pelligra
Author-Name: Alejandra Vásquez
Author-X-Name-First: Alejandra
Author-X-Name-Last: Vásquez
Title: Gender differences in socially responsible consumption. An experimental investigation
Abstract: 
 We report on a simple experimental study designed to investigate the different gender attitudes towards socially responsible consumption. We use the Vote-with-the-Wallet Game, (VWG), a version of a repeated multiplayer prisoner’s dilemma that mimics the characteristics of the choice between a conventional and a socially responsible product. More precisely we test the effect of three factors: two different frames and an ex-post redistribution mechanism that transfers resources from purely self-interested consumers to responsible ones. We find that women remain significantly more cooperative (choosing more often the responsible good) when the redistribution mechanism is interrupted and are significantly less satisfied about the behaviour of the other players in that treatment.
Journal: Applied Economics
Pages: 3630-3643
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430341
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430341
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3630-3643




Template-Type: ReDIF-Article 1.0
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Author-Name: Furkan Emirmahmutoglu
Author-X-Name-First: Furkan
Author-X-Name-Last: Emirmahmutoglu
Author-Name: Mubariz Hasanov
Author-X-Name-First: Mubariz
Author-X-Name-Last: Hasanov
Title: Structural break, nonlinearity and asymmetry: a re-examination of PPP proposition
Abstract: 
 In this study, we examine the validity of the PPP proposition for 28 European countries. For this purpose, we propose a new unit root test procedure that allows for both gradual structural breaks and asymmetric nonlinear adjustment towards the equilibrium level. Small-sample properties of the new tests are examined through Monte-Carlo simulations. The simulation results suggest that the new tests have satisfactory size and power properties. We then apply these new tests along with other unit root tests to examine stationarity properties of real exchange rate series of the sample countries. Our tests reject the null of unit root in more cases when compared to alternative tests. Overall, we find that the PPP proposition holds in majority of the European countries examined in this article.
Journal: Applied Economics
Pages: 1289-1308
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361005
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361005
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1289-1308




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Yang
Author-X-Name-First: Juan
Author-X-Name-Last: Yang
Author-Name: Man Gao
Author-X-Name-First: Man
Author-X-Name-Last: Gao
Title: The impact of education expansion on wage inequality
Abstract: 
 The findings on education expansion and income inequality have important implications for policymakers to implement effective policies to reduce income inequality. This study attempts to explain how education expansion affects income inequality by education distribution and the rate of return to education. We decompose the effect of education expansion on wage gaps into price effect and structure effect. We compare the income inequality from 2002 to 2013 using the Chinese Household Income Project (CHIP) 2002 and CHIP2013 survey data and employ FFL decomposition method. Our findings suggest that income inequality increased in 2013 and that income inequality among the high-income groups increased even more significantly. The structure effect of education expansion on income inequality is negative, when average education increases one year, the income gap between 80th and 20th will decrease 1.2%, in other words, education expansion decreases income inequality by allowing a wide range of individuals to attend college. However, this effect is offset by the price effect, which is positive and much more significant in magnitude. One extra year of average education will increase income gap by 29% which means that the demand for high-skilled labour is increasing faster than the supply and thus lead to the increasing premium for higher education return.
Journal: Applied Economics
Pages: 1309-1323
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361008
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361008
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1309-1323




Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Czarnitzki
Author-X-Name-First: Dirk
Author-X-Name-Last: Czarnitzki
Author-Name: Katrin Hussinger
Author-X-Name-First: Katrin
Author-X-Name-Last: Hussinger
Title: Input and output additionality of R&amp;D subsidies
Abstract: 
 This article analyses the effects of public R&amp;D subsidies on R&amp;D input and output of German firms. We distinguish between the direct impact of subsidies on R&amp;D investment and the indirect effect on innovation output measured by patent applications. We disentangle the productivity of purely privately financed R&amp;D and additional R&amp;D investment induced by the public incentive scheme. For this, a treatment-effect analysis is conducted in a first step. The results are implemented into the estimation of a patent production function in a second step. It turns out that both purely privately financed R&amp;D and publicly induced R&amp;D show a positive effect on patent outcome.
Journal: Applied Economics
Pages: 1324-1341
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361010
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361010
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1324-1341




Template-Type: ReDIF-Article 1.0
Author-Name: Yun-Yeong Kim
Author-X-Name-First: Yun-Yeong
Author-X-Name-Last: Kim
Title: Does monetary policy affect the long-run expectations of non-stationary real interest rates?
Abstract: 
 In this article, we analyse whether the monetary policy affects the long-run expectation of the non-stationary real interest rate. The analysis is conducted through Beveridge–Nelson trend decomposition within a cointegrated vector autoregressive model based on the New Keynesian framework. We suggest an augmented test of the conventional co-integration test on the non-stationarity of the real interest rate, which checks whether the co-integration coefficient of inflation is one and the output gap affects the co-integration equilibrium of the nominal interest rate. We further suggest decomposing the long-run expectation of the non-stationary real interest rate into three trends: the interest rate shock (including the monetary shock), inflation shock and output gap shock. According to empirical analyses using monthly US data after the Korean War, the long-run expectation of the non-stationary real interest rate contains an interest rate shock trend and the impulse of the federal fund target rate induces a significant response of the interest rate shock trend. However, the interest rate shock trend has a very small portion of the long-run expectation of the non-stationary real interest rate, which may explain why the monetary policy was not particularly effective in the economic recovery after the global financial crisis.
Journal: Applied Economics
Pages: 1342-1361
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361012
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361012
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1342-1361




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Pierluigi Conzo
Author-X-Name-First: Pierluigi
Author-X-Name-Last: Conzo
Author-Name: Fabio Pisani
Author-X-Name-First: Fabio
Author-X-Name-Last: Pisani
Title: Education and health in Europe
Abstract: 
 The productive and allocative theories predict that education has positive impact on health: the more educated adopt healthier life styles and use more efficiently health inputs, and this explains why they live longer. We find partial support for these theories with an econometric analysis on a large sample of Europeans aged above 50 documenting a significant and positive correlation among education years, life styles, health outputs and functionalities. We however find confirmation for an anomaly already observed in the United States, namely the more educated are more likely to contract cancer. Our results are robust when controlling for endogeneity and reverse causality in IV estimates with instrumental variables related to quarter of birth and neighbours’ cultural norms.
Journal: Applied Economics
Pages: 1362-1377
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361013
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361013
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1362-1377




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: 1412-1412
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361227
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361227
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1412-1412




Template-Type: ReDIF-Article 1.0
Author-Name: Spyridon Stavropoulos
Author-X-Name-First: Spyridon
Author-X-Name-Last: Stavropoulos
Author-Name: Ronald Wall
Author-X-Name-First: Ronald
Author-X-Name-Last: Wall
Author-Name: Yuanze Xu
Author-X-Name-First: Yuanze
Author-X-Name-Last: Xu
Title: Environmental regulations and industrial competitiveness: evidence from China
Abstract: 
 Economic activities are closely related to real-world environmental issues. Currently, more attention is paid to the association between environmental regulations and industrial competitiveness (IC) because of pressures on economic development and environmental protection. In this study, we identify and explain the association between environmental regulations and IC in China. As the largest developing country in the world, China has the unavoidable responsibility of protecting the environment and promoting global economic development. We analyse the mechanisms behind environmental regulations and industrial competiveness at the provincial level and conclude that the impact of environmental regulations upon IC is not a simple linear one, but a U-shaped relationship. It is argued that the crucial intervention to activate the U-shaped relationship, or Porter’s Hypothesis, is innovation, which can be triggered by stringent regulations and well-designed policies.
Journal: Applied Economics
Pages: 1378-1394
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363858
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363858
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1378-1394




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Gausden
Author-X-Name-First: Robert
Author-X-Name-Last: Gausden
Author-Name: Mohammad S. Hasan
Author-X-Name-First: Mohammad S.
Author-X-Name-Last: Hasan
Title: An assessment of the contribution of consumer confidence towards household spending decisions using UK data
Abstract: 
 The European Commission’s consumer confidence indicator (CCI) is assembled from responses to four questions about individual and general economic prospects which form part of the EU’s Consumer Survey. However, concerns may be raised about whether the four components should be constrained to exerting the same influence in a forecasting model of household consumption. Also, in this context, it would seem to be appropriate to permit a role to other information that is obtained from the EU survey. Consequently, in this article, different regression functions are specified in order to assess whether there is any gain to be achieved in predictive accuracy from adopting a more flexible approach towards using the data from the EU questionnaire. With an emphasis upon parsimony, an econometric analysis is performed in conjunction with UK quarterly data on household consumption expenditure. For two categories of spending, it is discovered that the quality of forecasts benefits from having undertaken disaggregation involving survey data beyond those which contribute towards the calculation of the CCI. Indeed, the respective consumption variables (relating to non-durable goods and durable goods excluding vehicles) are seen to be associated with relatively volatile behaviour over the forecast interval, 2008–2013.
Journal: Applied Economics
Pages: 1395-1411
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363859
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363859
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1395-1411




Template-Type: ReDIF-Article 1.0
Author-Name: Katsushi Suzuki
Author-X-Name-First: Katsushi
Author-X-Name-Last: Suzuki
Author-Name: Nakako Zushi
Author-X-Name-First: Nakako
Author-X-Name-Last: Zushi
Title: Labour unions and leverage: evidence from firm-level union data
Abstract: 
 Using firm-level labour union data from Japan, this paper investigates the effect of labour unions on firm leverage. We find that as union coverage increases, both the level of and extent of change in leverage decreases. These relations remain robust when a firm falls into deficit. We also find that firms with higher union coverage have a higher interest coverage ratio. In addition, we find that firms with higher union coverage are less likely to choose issuing debt compared to issuing equity when they face financial distress. Our results imply that significant employee influence enhanced by labour unions increases fixed costs, crowds out the firm’s debt capacity and consequently reduces the firm’s leverage.
Journal: Applied Economics
Pages: 2882-2894
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1683150
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683150
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2882-2894




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Marc Montaud
Author-X-Name-First: Jean-Marc
Author-X-Name-Last: Montaud
Author-Name: Jorge Dávalos
Author-X-Name-First: Jorge
Author-X-Name-Last: Dávalos
Author-Name: Nicolas Pécastaing
Author-X-Name-First: Nicolas
Author-X-Name-Last: Pécastaing
Title: Potential effects of scaling-up infrastructure in Peru: a general equilibrium model-based analysis
Abstract: 
 This study assesses and compares the potential economic impacts of different investment plans dedicated to filling infrastructure gaps in Peru. Using a national database at the firm level, we start by estimating empirically the positive externalities of Peruvian infrastructure, such as energy, telecommunications, and transportation facilities, on the output of private activities. In the second step, these estimates are introduced in a dynamic computable general equilibrium model used to conduct counterfactual simulations of various investment plans in infrastructure over a 15-year period. These simulations show first to what extent scaling-up infrastructure could be a worthwhile strategy to achieve economic growth in Peru; however, they also show that these benefits depend on the choice of funding schemes related to such public spending.
Journal: Applied Economics
Pages: 2895-2912
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696940
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696940
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2895-2912




Template-Type: ReDIF-Article 1.0
Author-Name: Qi Ge
Author-X-Name-First: Qi
Author-X-Name-Last: Ge
Author-Name: Eun Jung Jordan
Author-X-Name-First: Eun Jung
Author-X-Name-Last: Jordan
Author-Name: Myongjin Kim
Author-X-Name-First: Myongjin
Author-X-Name-Last: Kim
Author-Name: Leilei Shen
Author-X-Name-First: Leilei
Author-X-Name-Last: Shen
Title: Returns to job satisfaction in the presence of horizontal mismatch
Abstract: 
 In this paper, we study the relationship among horizontal mismatch, job satisfaction and wages using data from the 2013 Scientists and Engineers Statistical Data System (SESTAT). Estimates from 2SLS indicate that 1) field-occupation match in the highest degree has a positive effect on job satisfaction and wages; and 2) controlling for field-occupation matches, job satisfaction has a positive but diminishing effect on wages with a large heterogeneity across different age groups. In addition, we also distinguish between job satisfaction arising from benefits and job satisfaction that is productivity enhancing and find both to have a positive but nonlinear effect on wages.
Journal: Applied Economics
Pages: 2913-2930
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696941
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696941
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2913-2930




Template-Type: ReDIF-Article 1.0
Author-Name: Mingxi Wang
Author-X-Name-First: Mingxi
Author-X-Name-Last: Wang
Author-Name: Yi Hu
Author-X-Name-First: Yi
Author-X-Name-Last: Hu
Author-Name: Chuangyin Dang
Author-X-Name-First: Chuangyin
Author-X-Name-Last: Dang
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Title: A non-expected utility model and its application in practical auctions
Abstract: 
 This article presents a non-expected utility decision model which is nonlinear in the winning probabilities. The model not only explicitly expresses bidders’ attitudes to risk, but also addresses their preference over the bidding criteria. To demonstrate how to apply the model in the practical auction design, the first- and second-price auctions with both commission rate and reserve price are examined, respectively. For nonrisk-neutral bidders, the equilibrium bidding strategies are characterized, in which the commission rate has a significant influence on the bidding strategy through the critical valuation. However, the existence of the optimal commission rate is uncertain, but once it exists, it depends on the information rent of the highest or second highest order valuation in terms of the inverse hazard rate. With risk-aversion bidders, the only difference to the optimal reserve price is a constant between the first- and second-price auctions. The revenue comparisons show that the classical Revenue Equivalence Theorem fails in practical auctions with the commission rate. This article extends the application of the decision-making model in the auction design in theory and provides some guidance for the auction house and the seller to make their decisions in reality.
Journal: Applied Economics
Pages: 2931-2944
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696942
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696942
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2931-2944




Template-Type: ReDIF-Article 1.0
Author-Name: Chao Liang
Author-X-Name-First: Chao
Author-X-Name-Last: Liang
Author-Name: Yu Wei
Author-X-Name-First: Yu
Author-X-Name-Last: Wei
Author-Name: Xiafei Li
Author-X-Name-First: Xiafei
Author-X-Name-Last: Li
Author-Name: Xuhui Zhang
Author-X-Name-First: Xuhui
Author-X-Name-Last: Zhang
Author-Name: Yifeng Zhang
Author-X-Name-First: Yifeng
Author-X-Name-Last: Zhang
Title: Uncertainty and crude oil market volatility: new evidence
Abstract: 
 The main goal of this paper is to investigate the predictability of five economic uncertainty indices for oil price volatility in a changing world. We employ the standard predictive regression framework, several model combination approaches, as well as two prevailing model shrinkage methods to evaluate the performances of the uncertainty indices. The empirical results based on simple autoregression models including only one index suggest that global economic policy uncertainty (GEPU) and US equity market volatility (EMV) indices have significant predictive power for crude oil market volatility. In addition, the model combination approaches adopted in this paper can improve slightly the performances of individual autoregressive models. Lastly, the two model shrinkage methods, namely Elastin net and Lasso, outperform other individual AR-type model and combination models in most forecasting cases. Other empirical results based on alternative forecasting methods, estimation window sizes, high/low volatility and economic expansion/recession time periods further make sure the robustness of our major conclusions. The findings in this paper also have several important economic implications for oil investors.
Journal: Applied Economics
Pages: 2945-2959
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696943
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696943
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2945-2959




Template-Type: ReDIF-Article 1.0
Author-Name: Mariusz Jarmuzek
Author-X-Name-First: Mariusz
Author-X-Name-Last: Jarmuzek
Author-Name: Tonny Lybek
Author-X-Name-First: Tonny
Author-X-Name-Last: Lybek
Title: Can good governance lower bank intermediation costs?
Abstract: 
 This paper argues that better governance practices can reduce the costs, risks and uncertainty of financial intermediation. Our sample covers 100 high-, middle- and low-income countries during 1996 to 2015. Using panel regressions accounting for endogeneity and cross-sectional dependance, we find that net interest margins of banks are lower if various governance indicators are better. Governance indicators range from comprehensive indices on the rule of law to more narrow indicators like ethics of private firms. The global financial crisis seems not to have had a strong impact except via credit risk. Finally, we estimate that potential annual savings from lower net interest margins could average almost 0,3 percent of GDP, had the governance indicators been at the top decile. These simulations lend credence to the intuition that better governance practices should reduce costs, risks and uncertainty.
Journal: Applied Economics
Pages: 2960-2976
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1697421
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1697421
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2960-2976




Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Kamrul Hassan
Author-X-Name-First: Kamrul
Author-X-Name-Last: Hassan
Author-Name: Sanzidur Rahman
Author-X-Name-First: Sanzidur
Author-X-Name-Last: Rahman
Title: Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh
Abstract: 
 This study aims to investigate dynamic relationships between research and development (R&D) expenditure, climate change (measured by annual rainfall and temperature variations), human capital (proxied by literacy) and total factor productivity (TFP) growth in Bangladesh agriculture. Pesaran’s Pooled Mean Group (PMG) estimator is used to a unique panel data of 17 regions of Bangladesh covering a 61-year period (1948–2008). In addition, the panel vector autoregression (PVAR) model is also applied to trace the responsiveness of TFP from a shock to R&D, extension services, and literacy rate. Results reveal that R&D has an insignificant impact on TFP in the short-run, while it has a significant positive impact in the long-run. The contributions of climate variables (i.e., rainfall and temperature variations) are highly significant and negative in the long run. The literacy rate is found to have a significant positive impact on TFP as expected. These results suggest that agricultural R&D investment and human capital could play an important role to ameliorate the adverse effects of climate change in the agricultural sector of Bangladesh.
Journal: Applied Economics
Pages: 2977-2990
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1697422
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1697422
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2977-2990




Template-Type: ReDIF-Article 1.0
Author-Name: Julia Paxton
Author-X-Name-First: Julia
Author-X-Name-Last: Paxton
Title: Economics training and hyperbolic discounting: training versus selection effects
Abstract: 
 This paper contributes to the literature on the effects of economics training on behavior by examining the link between hyperbolic discounting and the number of economics classes taken by a sample of 1310 college graduates at Ohio University. A strong negative correlation is found between economics training and hyperbolic discounting behavior. Regression analysis shows that dynamic consistency is a determinant of taking economics classes. Once the endogeneity of these variables is accounted for, economics training is no longer a statistically significant determinant of hyperbolic discounting. Thus, the selection effect of studying economics outweighs the training effect. Behavioral variables are found to be more important in explaining hyperbolic discounting than demographic variables. The study suggests the importance of controlling for both the selection effect and the training effect for all studies that examine the role of economic training on behavior.
Journal: Applied Economics
Pages: 5891-5899
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1631439
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631439
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5891-5899




Template-Type: ReDIF-Article 1.0
Author-Name: Chao Zhou
Author-X-Name-First: Chao
Author-X-Name-Last: Zhou
Title: Effects of corporate governance on the decision to voluntarily disclose corporate social responsibility reports: evidence from China
Abstract: 
 This article investigates effects of corporate governance on the decision to voluntarily disclose corporate social responsibility (CSR) reports. By using a unique longitude data set of Chinese publicly traded manufacturing firms from 2010 to 2016, this study finds that ownership structure and board characteristics are significantly associated with firms’ decisions to voluntarily disclose CSR reports. In particular, our study finds that state ownership, institutional ownership, managerial ownership and board size are positively and significantly associated with the decision to voluntarily disclose CSR reports. However, board independence is not related to the decision. We also find CEO duality is negatively and significantly related to the decision. Our findings highlight the role of corporate governance in firms’ transparency by influencing the voluntary disclosure of additional information on firms’ CSR activities.
Journal: Applied Economics
Pages: 5900-5910
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1631440
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631440
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5900-5910




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Powell
Author-X-Name-First: Robert
Author-X-Name-Last: Powell
Author-Name: Duc H. Vo
Author-X-Name-First: Duc H.
Author-X-Name-Last: Vo
Author-Name: Thach N. Pham
Author-X-Name-First: Thach N.
Author-X-Name-Last: Pham
Title: Cattle as a consistently resilient agricultural commodity
Abstract: 
 This study compares a range of agricultural commodities over periods of varying economic circumstances. These commodities are examined over three categories, including returns, risk, and contribution to portfolio optimisation. Consistency in these categories is determined over four equal three-year stages which comprise pre-GFC (Global Financial Crisis), GFC, post-GFC and post-post GFC. To demonstrate resilience in the most extreme circumstances, the study uses Conditional Value at Risk (CVaR), which measures extreme risk in the tail of a distribution, as the risk measure and risk-return optimiser. The study thus provides a unique and comprehensive extreme-risk based focus which identifies and ranks the consistency of performance of agricultural commodities over a range of criteria and conditions. Cattle commodities consistently demonstrate the strongest overall performance in the categories examined.
Journal: Applied Economics
Pages: 5911-5922
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1631441
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631441
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5911-5922




Template-Type: ReDIF-Article 1.0
Author-Name: Gabor Molnar
Author-X-Name-First: Gabor
Author-X-Name-Last: Molnar
Author-Name: Scott J. Savage
Author-X-Name-First: Scott J.
Author-X-Name-Last: Savage
Author-Name: Douglas C. Sicker
Author-X-Name-First: Douglas C.
Author-X-Name-Last: Sicker
Title: High-speed Internet access and housing values
Abstract: 
 A hedonic model is estimated that relates house values to high-speed Internet access while controlling for the potential endogeneity of Internet access. Results show that single-family homes with access to a 25 Mbps broadband connection have a price that is about $5,977, or 3%, more than similar homes in neighborhoods with 1 Mbps. The rural premium is lower at $5,099. A cost-benefit exercise on the viability of rural broadband shows that demand will generally not support private investment, but that the revenue gap from upgrading legacy networks could be readily covered by the Universal Service Fund and other public subsidies.
Journal: Applied Economics
Pages: 5923-5936
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1631443
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631443
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5923-5936




Template-Type: ReDIF-Article 1.0
Author-Name: Antonia Grohmann
Author-X-Name-First: Antonia
Author-X-Name-Last: Grohmann
Author-Name: Sahra Sakha
Author-X-Name-First: Sahra
Author-X-Name-Last: Sakha
Title: The effect of peer observation on consumption choices: evidence from a lab-in-field experiment
Abstract: 
 We investigate the impact of peer observation on consumption decisions using a lab-in-field experiment. Respondents make consumption decisions either alone or under peer observation. We find evidence for peer effects. We are able to study these further by looking into the mechanism and performing detailed heterogeneity analysis. Concerning the mechanisms, we find evidence for an information channel. Further, we show that the consumption choice is influenced by how many people made the same decision previously, but not by who those people are, hence finding evidence of a psychological channel. Respondents with higher cognitive ability are less susceptible to peer effects, while people living in small villages are more susceptible.
Journal: Applied Economics
Pages: 5937-5951
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1638499
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638499
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5937-5951




Template-Type: ReDIF-Article 1.0
Author-Name: Yingdan Mei
Author-X-Name-First: Yingdan
Author-X-Name-Last: Mei
Author-Name: Li Gao
Author-X-Name-First: Li
Author-X-Name-Last: Gao
Author-Name: Peiyuan Zhang
Author-X-Name-First: Peiyuan
Author-X-Name-Last: Zhang
Title: Residential property price differentials of waste plants: evidence from Beijing, China
Abstract: 
 As a primary source of urban pollution, waste plants release toxic gases and polluted waste water that can cause great harm to human health and contaminate water resources. The adverse impact of waste plants on environmental threaten the quality of life of surrounding residents which will be reflected in residential property values. In this study, we develop a hedonic price model to estimate the environmental externalities of waste plants based on a panel dataset for real-estate transactions in Beijing from 2011 to 2015. We apply fixed effects and a Heckman selection model to control for omitted variable bias and sample selection bias and then construct price counterfactuals for properties. The price differentials between expected and counterfactual prices are then calculated. Our empirical results suggest that waste plants negatively influence residential property prices. Additionally, the influences of other factors, such as school district, traffic convenience, and average housing area, on property prices are consistent with common sense, though they are weakened for properties within three kilometers of waste plants.
Journal: Applied Economics
Pages: 5952-5960
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1640858
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640858
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5952-5960




Template-Type: ReDIF-Article 1.0
Author-Name: Felipe González
Author-X-Name-First: Felipe
Author-X-Name-Last: González
Author-Name: Vicente Valdivieso
Author-X-Name-First: Vicente
Author-X-Name-Last: Valdivieso
Author-Name: Louis De Grange
Author-X-Name-First: Louis
Author-X-Name-Last: De Grange
Author-Name: Rodrigo Troncoso
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Troncoso
Title: Impact of the dedicated infrastructure on bus service quality: an empirical analysis
Abstract: 
 An econometric analysis is conducted to quantify the impact of different variables on the service quality of the Santiago, Chile bus system. The indicators tested as measures of service quality are the average bus speed, the bus trip time coefficient of variation and the bus headway coefficient of variation. The analysis uses peak hour data obtained for all the routes served by the system’s various concessionaire operators. A separate multiple linear regression model is estimated for each indicator, with the latter as the explained variable. The main explanatory variables are a series of design factors representing different types of dedicated route infrastructure and the incorporation in some routes of segments of urban motorway. The results of the models show that the existence of dedicated bus route infrastructure positively impacts all three service quality indicators. The use of motorway segments in particular has a major positive effect on average speed. The model estimates also reveal that the main explanatory factor in headway variability at the end of a route is the headway variability at the start of it, the latter factor determined by operator management decisions regarding bus despatches.
Journal: Applied Economics
Pages: 5961-5971
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1644441
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644441
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5961-5971




Template-Type: ReDIF-Article 1.0
Author-Name: Yuta Ogane
Author-X-Name-First: Yuta
Author-X-Name-Last: Ogane
Title: Effects of main bank switching on new business bankruptcy
Abstract: 
 This paper examines the effects of main bank switching on the probability of bankruptcy of new small businesses using a propensity score matching estimation approach. We use a unique firm-level dataset of approximately 1,000 small and medium-sized enterprises (SMEs) incorporated in Japan; these SMEs are young and unlisted just after incorporation. We find that switching main bank relationships increases the probability of firm bankruptcy. In addition, the result holds only when the relationship between the firm and its main bank is terminated. Specifically, the probability of bankruptcy increases when firms switch their main banks to financial institutions with which they have not previously transacted, and when the ex-post main banks are not affiliated financial institutions of their ex-ante main banks. These results may be because such switching worsens the financial condition of client firms, and thus, it leads to bankruptcy.
Journal: Applied Economics
Pages: 6286-6308
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1616067
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616067
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6286-6308




Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Filiz
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Filiz
Author-Name: Thomas Nahmer
Author-X-Name-First: Thomas
Author-X-Name-Last: Nahmer
Author-Name: Markus Spiwoks
Author-X-Name-First: Markus
Author-X-Name-Last: Spiwoks
Author-Name: Kilian Bizer
Author-X-Name-First: Kilian
Author-X-Name-Last: Bizer
Title: The accuracy of interest rate forecasts in the Asia-Pacific region: opportunities for portfolio management
Abstract: 
 We analysed interest rate forecasts from Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. We assessed 532 forecast time series with a total of 85,264 individual interest rate forecasts. To do so, we carried out a comparison to naïve forecasts and investigated the forecast time series for topically orientated trend adjustments. In addition, we deployed the sign accuracy test and the unbiasedness test. The results are very sobering in part: 95.9% of all forecast time series are characterized by the phenomenon of topically orientated trend adjustments, and 99.4% of all forecast time series proved to be biased. Only a small proportion of the forecast time series (3.6%) reflected the future interest rate trend significantly more precisely than a naïve forecast. However, at the same time some of the results of the study are surprisingly positive. The sign accuracy test revealed that 48.3% of all forecast time series predict the interest rate trend significantly better than a random walk forecast.
Journal: Applied Economics
Pages: 6309-6332
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1616073
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616073
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6309-6332




Template-Type: ReDIF-Article 1.0
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Author-Name: Elie Bouri
Author-X-Name-First: Elie
Author-X-Name-Last: Bouri
Author-Name: Jose Arreola-Hernandez
Author-X-Name-First: Jose
Author-X-Name-Last: Arreola-Hernandez
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Author-Name: Stelios Bekiros
Author-X-Name-First: Stelios
Author-X-Name-Last: Bekiros
Title: Spillover across Eurozone credit market sectors and determinants
Abstract: 
 We examine spillover and its determinants among Eurozone sector level credit markets using time and frequency domain spillover approaches. Based on network theory and connectedness analysis, we identify the sectors that are major transmitters and receivers of spillover during normal and crisis periods. The rolling window analysis shows that short-run spillover among credit market sectors intensifies during global and Eurozone crisis periods. Further, using Bayesian model averaging, we find that overall financial conditions and stock market volatility are the main drivers of total and sector-level spillover. Our findings have important implications for policymakers and investors interested in Euro-area credit risk at the sector level.
Journal: Applied Economics
Pages: 6333-6349
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619014
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619014
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6333-6349




Template-Type: ReDIF-Article 1.0
Author-Name: Armanda Cetrulo
Author-X-Name-First: Armanda
Author-X-Name-Last: Cetrulo
Author-Name: Valeria Cirillo
Author-X-Name-First: Valeria
Author-X-Name-Last: Cirillo
Author-Name: Dario Guarascio
Author-X-Name-First: Dario
Author-X-Name-Last: Guarascio
Title: Weaker jobs, weaker innovation. Exploring the effects of temporary employment on new products
Abstract: 
 This work explores the relationship between temporary employment and product innovation focusing on five major European economies (France, Germany, Italy, Spain and the Netherlands) observed between 1998 and 2012. The analysis distinguishes sectors according to their technological characteristics and regimes finding that industries using temporary employment tend to have a weaker product innovation propensity. The negative correlation between temporary employment and innovation turns out to be stronger in those sectors where tacit firm’s specific knowledge is crucial to the development of innovations. These sectors are identified using both the ‘Cumulativeness’ proxy stemming from Peneder’s classification as well as distinguishing between different Schumpeterian regimes – Schumpeter Mark I vs. II – of knowledge accumulation.
Journal: Applied Economics
Pages: 6350-6375
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619015
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619015
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6350-6375




Template-Type: ReDIF-Article 1.0
Author-Name: Maneka Jayasinghe
Author-X-Name-First: Maneka
Author-X-Name-Last: Jayasinghe
Author-Name: Eliyathamby A. Selvanathan
Author-X-Name-First: Eliyathamby A.
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: An intertemporal analysis of expenditure elasticities under three expenditure specifications for Sri Lanka
Abstract: 
 Household income has been identified as one of the major determinants of demand for household goods. In addition, other household characteristics, such as household size and composition are also found to be important factors that influence household consumption decisions. This study, using four waves (2006/07, 2009/10, 2012/13 and 2016) of Sri Lankan Household Income and Expenditure Survey data, estimates three different specifications (namely, household expenditure, per-capita expenditure and expenditure per equivalent adult) of a complete system of Box-Cox Engel curves to incorporate household size and compositional differences into the model specification. A comparison of elasticity estimates across the three specifications indicates that amongst the three, the best performing model is the one utilizing household expenditure. An intertemporal analysis of expenditure elasticities indicates that although the magnitude of expenditure elasticities has changed, the necessity or luxury classification of household commodities has mostly remained unchanged for the period 2006 − 2016 in Sri Lanka.
Journal: Applied Economics
Pages: 6376-6392
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619020
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619020
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6376-6392




Template-Type: ReDIF-Article 1.0
Author-Name: Łukasz Goczek
Author-X-Name-First: Łukasz
Author-X-Name-Last: Goczek
Author-Name: Ivan Skliarov
Author-X-Name-First: Ivan
Author-X-Name-Last: Skliarov
Title: What drives the Bitcoin price? A factor augmented error correction mechanism investigation
Abstract: 
 This article aims to determine what drives the price of Bitcoin. To achieve this aim, a large set of data is analysed using VEC models augmented by factors representing unobservable economic forces. They have been obtained by means of principal component analysis. This method enables us to contribute to the existing literature on Bitcoin in two ways. First, we employ the dimension reduction technique to combine variables from several papers. Second, we estimate several unobservable economic concepts instead of utilizing proxy variables as is usually done. We find that the main factor driving the Bitcoin price is its popularity. Hence, our result not only confirms some previous findings but reinforces them by providing a better definition of popularity. Finally, we conclude that the Bitcoin price is not affected by supply and demand factors in the way that is natural for conventional currencies.
Journal: Applied Economics
Pages: 6393-6410
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619021
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619021
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6393-6410




Template-Type: ReDIF-Article 1.0
Author-Name: Fenghua Wen
Author-X-Name-First: Fenghua
Author-X-Name-Last: Wen
Author-Name: Yupei Zhao
Author-X-Name-First: Yupei
Author-X-Name-Last: Zhao
Author-Name: Minzhi Zhang
Author-X-Name-First: Minzhi
Author-X-Name-Last: Zhang
Author-Name: Chunyan Hu
Author-X-Name-First: Chunyan
Author-X-Name-Last: Hu
Title: Forecasting realized volatility of crude oil futures with equity market uncertainty
Abstract: 
 This paper examines whether the equity market uncertainty (EMU) index contains incremental information for forecasting the realized volatility of crude oil futures. We use 5-min high-frequency transaction data for WTI crude oil futures and develop six heterogeneous autoregressive (HAR) models based on classical HAR-type models. The empirical results suggest that EMU contains more incremental information than the economic policy uncertainty (EPU) for forecasting the realized volatility of crude oil futures. More importantly, we argue that EMU is a non negligible additional predictive variable that can significantly improve the 1-day ahead predictive accuracy of all six HAR-type models, and improve the 1-week ahead forecasting performance of the HAR-RV, HAR-RV-J, HAR-RSV, HAR-RV-SJ models. These findings highlight a strong short-term and a weak mid-term predictive ability of EMU in the crude oil futures market.
Journal: Applied Economics
Pages: 6411-6427
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619023
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619023
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6411-6427




Template-Type: ReDIF-Article 1.0
Author-Name: Jingwen Yu
Author-X-Name-First: Jingwen
Author-X-Name-Last: Yu
Author-Name: Yongzhao Lin
Author-X-Name-First: Yongzhao
Author-X-Name-Last: Lin
Author-Name: Cheng Jiang
Author-X-Name-First: Cheng
Author-X-Name-Last: Jiang
Title: Are cadre offspring in the fast lane? Evidence from the labour market for college graduates in China
Abstract: 
 This paper studies the impact of having a cadre parent on the labour market performance and channels of the intergenerational transference. Using a recent data set, we find that college graduates with a cadre parent earn a wage premium of 4.46% more than those who do not. They also demonstrate advantages in obtaining a household registration (hukou), entering high-level occupations, and achieving job satisfaction. In the discussion on channels, we first show that aggressive self-investment serves as one potential channel but can only explain limited amount of the premiums. To test the other channel – interpersonal network (guanxi), we provide evidence that cadre offspring demonstrate more extensive family network resource and information advantage when searching for jobs. This channel is also supported by the finding that working closer to parents geographically or institutionally would enhance the effect of having a cadre parent.
Journal: Applied Economics
Pages: 3920-3946
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1584375
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584375
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3920-3946




Template-Type: ReDIF-Article 1.0
Author-Name: Justin Kurland
Author-X-Name-First: Justin
Author-X-Name-Last: Kurland
Title: Arena-based events and crime: an analysis of hourly robbery data
Abstract: 
 This article makes use of hourly crime counts to model the relationship between events that take place at the Prudential Center in Newark, NJ and robberies, an arena that has caused local controversy regarding the costs and benefits of hosting such an entertainment venue. Results from the econometric model suggest that the NHL’s New Jersey Devils ice hockey games, concerts, and Disney-themed events are all associated with increases in robbery, while various other event categories such as the NBA basketball games played by the Nets and boxing, and mixed martial arts (MMA) matches are not associated with an increase. These findings support two complementary ecological theories of crime that focus on how events provide additional opportunities for crime by increasing the associated benefits while simultaneously decreasing the cost for economically motivated offenders to take advantage of.
Journal: Applied Economics
Pages: 3947-3957
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1587590
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1587590
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3947-3957




Template-Type: ReDIF-Article 1.0
Author-Name: Hyunwoong Pyun
Author-X-Name-First: Hyunwoong
Author-X-Name-Last: Pyun
Author-Name: Joshua C. Hall
Author-X-Name-First: Joshua C.
Author-X-Name-Last: Hall
Title: Does the presence of professional football cause crime in a city? Evidence from Pontiac, Michigan
Abstract: 
 Using daily panel data from Detroit, we empirically explore the relationship between the National Football League (NFL) and crime in a city. We exploit the natural experiment of the Detroit Lions’ move from Pontiac, Michigan, to downtown Detroit in 2002. Pontiac is used as the treatment city and non-game day crime, other suburban cities, and other cities outside Detroit MSA are used as the comparison groups. Employing a difference-in-difference approach, we find decreases in assaults and vandalism on home game days in Pontiac relative to the control cities after the Lions’ move. We find weak evidence of a net decrease in larceny and vandalism in Pontiac on home game days following the loss of professional football. No changes in assaults and auto theft are reported. While not conclusive, our results suggest that professional football leads to additional larceny and vandalism incidents but no effects on assaults and auto theft.
Journal: Applied Economics
Pages: 3958-3970
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588942
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588942
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3958-3970




Template-Type: ReDIF-Article 1.0
Author-Name: Minh Son Le
Author-X-Name-First: Minh Son
Author-X-Name-Last: Le
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Author-Name: Jeremy Nguyen
Author-X-Name-First: Jeremy
Author-X-Name-Last: Nguyen
Title: Trade liberalisation, poverty, and inequality in Vietnam: a quantile regression approach
Abstract: 
 This study examines the effects of trade liberalisation on rural household welfare, poverty, and inequality in Vietnam, with the use of multiple estimation strategies, including the panel quantile regression approach based on Canay's two-step estimator. Taking account of the multi-faceted nature of trade liberalisation, we consider a set of household-level trade-related variables, including employment in export, import-competing, and manufacturing sectors. A unique panel data set is constructed from the Vietnam Household Living Standards Surveys conducted in 2002, 2004 and 2006. We find that employment in trade-related sectors contributes significantly to rural household welfare. Moreover, the effects of trade-related employment on welfare are heterogeneous across the welfare/income distribution, in that trade-related employment sectors have different influences on different groups/quantiles of households.
Journal: Applied Economics
Pages: 3971-3981
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588943
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588943
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3971-3981




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Martinez Cillero
Author-X-Name-First: Maria
Author-X-Name-Last: Martinez Cillero
Author-Name: Fiona Thorne
Author-X-Name-First: Fiona
Author-X-Name-Last: Thorne
Title: Sources of productivity growth using the Färe-Primont decomposition. An empirical application to the Irish beef sector
Abstract: 
 Several competing methodologies for TFP estimation have been developed in the past decades. A popular approach in the literature is index number computation. The most widely implemented TFP indices face however several important limitations. For example, Fisher, Tornqvist or Malmquist TFP indices do not satisfy the transitivity test, precluding reliable direct inter-temporal comparisons. The recently developed Färe-Primont TFP index satisfies this property, and therefore it is applied to analyse the evolution of TFP in the Irish beef sector between 2010 and 2016. Moreover, this index is multiplicatively complete, allowing a consistent decomposition of TFP growth in different sources. The sample of Irish beef farms used in the analysis is clustered to account for differences in production technology in the sector. The cluster-specific TFP changes computed were found to present important differences across the seven clusters identified. Significant TFP growth was identified in five of the classes, while TFP declined for the other two. Dispersion and mobility of the TFP levels indicate a lack of structural changes in the sector regardless of the cluster considered.
Journal: Applied Economics
Pages: 3982-3994
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588944
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588944
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3982-3994




Template-Type: ReDIF-Article 1.0
Author-Name: Bill Hu
Author-X-Name-First: Bill
Author-X-Name-Last: Hu
Author-Name: Christine Jiang
Author-X-Name-First: Christine
Author-X-Name-Last: Jiang
Author-Name: Thomas McInish
Author-X-Name-First: Thomas
Author-X-Name-Last: McInish
Author-Name: Yixi Ning
Author-X-Name-First: Yixi
Author-X-Name-Last: Ning
Title: Price Clustering of Chinese IPOs: The Impact of Regulation, Cultural Factors, and Negotiation
Abstract: 
 During June 2009–May 2012, the China Securities Regulatory Commission (CSRC) suspended window guidance that limits issue prices. Using this regime change as a natural experiment, we test the combined effects of regulation, culture, and negotiation on price clustering of Chinese IPOs. The proportion of IPOs priced on round number 0 increases from 42.58% during sample periods with window guidance to 79.81% during sample period without window guidance, a level similar to that reported in developed markets . Moreover, we document a connection between whole CNY pricing of Chinese IPOs and several uncertainty measures including a unique uncertainty proxy defined as the time gap between the IPO date and the listing date. Second to the round number 0, issuing firms favour number 8 that associates with fortune, particularly during sample periods with window guidance. Our findings that price restrictions limit the power of negotiations but not the influence of cultural factors contributing to the understanding of price formation process.
Journal: Applied Economics
Pages: 3995-4007
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588946
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588946
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3995-4007




Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Shuddhasattwa Rafiq
Author-X-Name-First: Shuddhasattwa
Author-X-Name-Last: Rafiq
Author-Name: Sahar Shafiei
Author-X-Name-First: Sahar
Author-X-Name-Last: Shafiei
Author-Name: Yao Yao
Author-X-Name-First: Yao
Author-X-Name-Last: Yao
Title: Does urbanization increase pollutant emission and energy intensity? evidence from some Asian developing economies
Abstract: 
 This paper aims to investigate the effects of urbanization on pollutant emissions and energy intensity in selected Asian developing countries after controlling for the effects of disaggregated (renewable and non-renewable) energy consumption, trade liberalization, and economic growth. We use both linear and nonlinear panel data econometric techniques and employ recently introduced mean group estimation methods, allowing for heterogeneity and cross-sectional dependence. However, to check the robustness of our panel results, we also apply the autoregressive distributed lag (ARDL)-bound testing approach to country-level data. In addition, the relationship between affluence and CO2 emissions is examined in the context of the Environmental Kuznets Curve (EKC) hypothesis. The estimation results identify the population, affluence, and non-renewable energy consumption as major factors in pollutant emissions in Asian countries. However, the results of the EKC hypothesis show that when countries achieve a certain level of economic growth, their emissions tend to decline. Whereas nonlinear results show that renewable energy, urbanization, and trade liberalization reduce emissions, linear estimations do not confirm these outcomes. Thus, substitution of non-renewable for renewable energy consumption, cautious and planned urbanization programs and more liberal trading regimes may be viable options for sustainable growth of these developing Asian economies.
Journal: Applied Economics
Pages: 4008-4024
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588947
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588947
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:4008-4024




Template-Type: ReDIF-Article 1.0
Author-Name: Ashim Kumar Kar
Author-X-Name-First: Ashim Kumar
Author-X-Name-Last: Kar
Author-Name: Ranjula Bali Swain
Author-X-Name-First: Ranjula
Author-X-Name-Last: Bali Swain
Title: Are microfinance markets monopolistic?
Abstract: 
 Do microfinance institutions (MFIs) operate in a monopoly, monopolistic competition environment or are their revenues derived under perfect competition markets? We employ the Panzar–Rosse revenue test on a global panel data to assess the competitive environment in which MFIs of five selected countries operate: Ecuador, India, Indonesia, Peru and Philippines, over the period 2005–2009. We estimate the static and the dynamic revenue tests, with analyses of the interest rate and the return on assets. We control for microfinance-specific variables such as capital-assets-ratio, loans-assets and the size of the MFI. The analyses also account for the endogeneity problem by employing the fixed-effects two-stage least squares and the fixed-effects system generalized method of moments. Our results suggest that MFIs in Peru and India operate in a monopolistic environment. We also find weak evidence that the microfinance industry in Ecuador, Indonesia and Philippines may operate under perfect competition.
Journal: Applied Economics
Pages: 1-14
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1310999
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1310999
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:1-14




Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Lucarelli
Author-X-Name-First: Stefano
Author-X-Name-Last: Lucarelli
Author-Name: Filippo Umberto Andrini
Author-X-Name-First: Filippo Umberto
Author-X-Name-Last: Andrini
Author-Name: Annamaria Bianchi
Author-X-Name-First: Annamaria
Author-X-Name-Last: Bianchi
Title: Euro depreciation and trade asymmetries between Germany and Italy versus the US: industry-level estimates
Abstract: 
 Since April 2014 to March 2015, the European Central Bank expansionary monetary policy instigates a huge depreciation of the euro in terms of dollar. According to the mainstream monetary theory, these dynamics should make the exports cheaper and at the same time make the imports more expensive. Has real depreciation of the euro helped in the improvement of European countries’ trade balances? Following the main methodologies in the recent literature, our study analyses the effects of this depreciation both for Italy and Germany towards the US. We use industry-level data at monthly frequency. The results are different from each bilateral relationship. We find that 11 industries register a long-run improvement (8 for Italy and 3 for Germany). The J-curve effect is proven just in six cases, always for Italy. The inverted J-curve effect is proven in eight cases, four for Germany, and four for Italy. These results seem to be an indirect demonstration of the structural asymmetries between German and Italian economies: German economic system is more able to be competitive with a strong currency, than Italy.
Journal: Applied Economics
Pages: 15-34
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1311000
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311000
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:15-34




Template-Type: ReDIF-Article 1.0
Author-Name: A. M. Khalid
Author-X-Name-First: A. M.
Author-X-Name-Last: Khalid
Author-Name: G. Rajaguru
Author-X-Name-First: G.
Author-X-Name-Last: Rajaguru
Title: Investigating the determinants of domestic bonds: the role of socio-economic and institutional factors
Abstract: 
 This article investigates the determinants of the size of domestic bond market using economic, social and institutional factors. We expand the body of existing literature by suggesting that economic and social environment as well as institutional settings vary between developed and emerging economies. The article uses recent data from a wide range of countries, incorporates a variety of macroeconomic variables, social indicators and institutional factors to reassess the determinant of domestic bond markets. Robustness of the empirical analysis is established through both two-stage least squares and generalized method of movements techniques. The results of this article show that the size of the economy, breadth and depth of the banking system, the monetary policy stance, the degree of openness, the level of corruption, the degree of civil liberty and status of market access to investors, all play a crucial role in the determination of the size of the domestic bond market. We also find differences across developed and emerging market samples. The results are robust to different specifications and the corresponding estimation techniques.
Journal: Applied Economics
Pages: 35-50
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313951
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313951
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:35-50




Template-Type: ReDIF-Article 1.0
Author-Name: Zihan Liu
Author-X-Name-First: Zihan
Author-X-Name-Last: Liu
Author-Name: Ju’e Guo
Author-X-Name-First: Ju’e
Author-X-Name-Last: Guo
Author-Name: Shubin Wang
Author-X-Name-First: Shubin
Author-X-Name-Last: Wang
Author-Name: Hongtao Liu
Author-X-Name-First: Hongtao
Author-X-Name-Last: Liu
Title: Government incentive strategies and private capital participation in China’s Shale gas development
Abstract: 
 Shale gas development investments are uncertain and irreversible in the initial stage in China. Flexible incentive strategy is needed for governments to guide private capital participation at different development stages. This study aims to provide analysis governments can use to encourage private investment in shale gas projects according to its plans in an extended real options framework. A social benefits variable is introduced to determine the threshold of social benefits that determine whether the government will choose a deferred or instant incentives strategy. By considering the efficiency factor, we show the optimal arrangements of two kinds of incentives: tax cuts and production subsidies, to implement incentive targets. The results indicate that current market demand and social benefits are the key factors that affect the government’s choice of incentive strategy. We also find that the optimal level of incentives, either tax cuts or production subsidies, are independent of current market demand and future market uncertainty under the delayed incentive strategy, but which affect the optimal level of incentives under the instant motivation strategy, and ignoring the negative influence of unpredictable random events on future market demand might lead to insufficient government incentives in this case.
Journal: Applied Economics
Pages: 51-64
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313953
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313953
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:51-64




Template-Type: ReDIF-Article 1.0
Author-Name: W. David Allen
Author-X-Name-First: W. David
Author-X-Name-Last: Allen
Title: Self-protection against crime: what do schools do?
Abstract: 
 Most economic research about self-protection against crime concentrates on self-protection by individuals, households, and stores – private economic agents. We know much less about self-protection in public economic settings, such as by schools; this article takes a step towards learning more. An economic agent who self-protects benefits by reducing vulnerability to crime but incurs self-protection costs whether a victimization occurs or not; should a crime occur, the agent further bears the cost of the victimization itself. The agent, a school administrator in this application, must determine the optimal level of self-protection within this environment. Empirical results obtained using data from the 2004 and 2006 School Survey on Crime and Safety (SSOCS) show that schools self-protect (use professional security personnel) much in line with theoretical predictions. Among other findings, schools located in larger cities and that have a larger and older student body self-protect more prevalently than other schools, while schools with more academically able students self-protect less than schools with less productive student inputs.
Journal: Applied Economics
Pages: 65-78
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313955
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313955
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:65-78




Template-Type: ReDIF-Article 1.0
Author-Name: Raquel Campos
Author-X-Name-First: Raquel
Author-X-Name-Last: Campos
Author-Name: María Arrazola
Author-X-Name-First: María
Author-X-Name-Last: Arrazola
Author-Name: José de Hevia
Author-X-Name-First: José
Author-X-Name-Last: de Hevia
Title: Finding the right employee online: determinants of internet recruitment in Spanish firms
Abstract: 
 This paper analyses the variation of recruitment strategies in Spanish firms, with special emphasis on the Internet. Using data from the Spanish Labour Trends Survey for the period 2001–2011, we study the factors influencing the decision to use online recruitment and explore the differences between Internet and eight traditional recruitment channels. Our results show that the adoption of the Internet monotonically increases over the sample period, when Internet becomes more universal and even in periods with excess of applicants. Large firms operating in information-intensive activities, and located in regions more developed and with better infrastructures are more likely to search for new employees online. We also find that Internet and traditional recruitment methods follow different patterns, especially when using personal referrals and public employment services. Our results suggest the presence of network externalities derived from the increase number of compatible online job seekers.
Journal: Applied Economics
Pages: 79-93
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319560
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319560
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:79-93




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy F. Harris
Author-X-Name-First: Timothy F.
Author-X-Name-Last: Harris
Author-Name: Aaron Yelowitz
Author-X-Name-First: Aaron
Author-X-Name-Last: Yelowitz
Title: Racial disparities in life insurance coverage
Abstract: 
 We evaluate the extent to which there are racial disparities in life insurance coverage using multiple years of the Survey of Income and Program Participation between 2001 and 2010. We find that African Americans hold significantly more life insurance – especially whole life insurance – after controlling for other factors. We demonstrate that our findings diverge from prior work because we examine all households instead of focusing exclusively on married and cohabitating households. Although earning shocks due to mortality likely contribute to racial disparities in wealth, the influence is mitigated by the racial composition of life insurance holdings.
Journal: Applied Economics
Pages: 94-107
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319562
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319562
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:94-107




Template-Type: ReDIF-Article 1.0
Author-Name: Yanzhen Wang
Author-X-Name-First: Yanzhen
Author-X-Name-Last: Wang
Author-Name: Xiumin Li
Author-X-Name-First: Xiumin
Author-X-Name-Last: Li
Author-Name: Dong Huang
Author-X-Name-First: Dong
Author-X-Name-Last: Huang
Author-Name: Aihua Wang
Author-X-Name-First: Aihua
Author-X-Name-Last: Wang
Title: Is there evidence of “fear of appreciation” in China’s foreign exchange market intervention?
Abstract: 
 Using the data after the exchange rate regime reform in July 2005, this paper systematically studied the issue whether China has conducted ‘fear of appreciation’ asymmetric intervention. The results show that China’s intervention is discontinuous and asymmetric, rather than oversimplified ‘fear of appreciation’. China has a target range with respect to exchange rate deviation, and most observations are concentrated in this range, in which the exchange rate deviation can be tolerated. Outside the target range, the width of the range suggests that the tolerance level for appreciation is much higher than that for depreciation, whereas the estimated coefficients show that the monetary authority responds more vigorously to substantial appreciation than to depreciation. In addition, it can be expected that with the marketization of RMB exchange rate, China’s intervention degree will further decline.
Journal: Applied Economics
Pages: 537-551
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646878
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646878
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:537-551




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Fitzgerald
Author-X-Name-First: Timothy
Author-X-Name-Last: Fitzgerald
Author-Name: Forrest F. Aven
Author-X-Name-First: Forrest F.
Author-X-Name-Last: Aven
Title: Paying for procurement: analysis of landman compensation surveys
Abstract: 
 Utilizing a unique time series of cross-sectional surveys, we analyse the labour market for professional landman services to establish the factors affecting compensation during a recent period that substantially increased demand. Land services are an important subsector of the energy industry, especially for oil and gas exploration and production, which has been stimulated by technological improvements that facilitate economic extraction of unconventional resources. That led to an increase in oil and gas leasing activity and a resultant increase in demand for land services. We assess factors affecting compensation across several relevant margins. An influx of entrants into the profession has disrupted historic compensation patterns; entry appears to have been greatest in regions of the United States most affected by unconventional resource development. Some landmen are independent contractors while others are company employees. We find mixed results for professional certifications across contract types and gender, using instrumental variables to account for contractual choice.Abbreviation: AAPL: American Association of Professional Landmen; RPL: registered professional landman; CPL: certified professional landman; PLM: professional land manager
Journal: Applied Economics
Pages: 552-567
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646879
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646879
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:552-567




Template-Type: ReDIF-Article 1.0
Author-Name: Larissa da Silva Marioni
Author-X-Name-First: Larissa da Silva
Author-X-Name-Last: Marioni
Author-Name: Ricardo Da Silva Freguglia
Author-X-Name-First: Ricardo Da Silva
Author-X-Name-Last: Freguglia
Author-Name: Naercio A Menezes-Filho
Author-X-Name-First: Naercio A
Author-X-Name-Last: Menezes-Filho
Title: The impacts of teacher working conditions and human capital on student achievement: evidence from brazilian longitudinal data
Abstract: 
 We use a new longitudinal matched student-teacher data from Brazil to examine the impacts of teacher human capital and working conditions on student learning controlling for student, teacher, and student-teacher match fixed effects. We find that teacher working conditions impact students outcomes. Teachers employed in more than one school negatively affect student test scores, while those working more hours in the same school positively impact students outcomes. Additionally, teacher education, experience, and family income affect student outcomes in Portuguese but not in Mathematics. Students who change from a low to a high value-added teacher experience a significant increase in proficiency.
Journal: Applied Economics
Pages: 568-582
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1650885
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1650885
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:568-582




Template-Type: ReDIF-Article 1.0
Author-Name: Farid Ullah
Author-X-Name-First: Farid
Author-X-Name-Last: Ullah
Author-Name: Ping Jiang
Author-X-Name-First: Ping
Author-X-Name-Last: Jiang
Author-Name: Yasir Shahab
Author-X-Name-First: Yasir
Author-X-Name-Last: Shahab
Author-Name: Hai-Xia Li
Author-X-Name-First: Hai-Xia
Author-X-Name-Last: Li
Author-Name: Lei Xu
Author-X-Name-First: Lei
Author-X-Name-Last: Xu
Title: Block ownership and CEO compensation: does board gender diversity matter?
Abstract: 
 This study investigates the effect of block ownership (institutions and state) on CEO compensation and the extent to which gender diversity in the corporate board moderates this nexus during the period from 2008 to 2016 in all Chinese A-share listed firms. The empirical findings of our study are twofold. First, our results indicate that institutional ownership has a positive and significant impact on CEO compensation, while state ownership has a negative and significant impact on CEO compensation. Second, by analysing the moderating role of gender diversity, our results show that gender diversity negatively (positively) moderates the relationship between institutional (state) ownership and CEO compensation. These findings are robust with the use of an alternative measure of CEO compensation and estimation techniques. Overall, our study supports the resource dependence perspective of the moderating role of board gender diversity.
Journal: Applied Economics
Pages: 583-597
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659490
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659490
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:583-597




Template-Type: ReDIF-Article 1.0
Author-Name: Alfonso Mendoza-Velázquez
Author-X-Name-First: Alfonso
Author-X-Name-Last: Mendoza-Velázquez
Author-Name: Vicente German-Soto
Author-X-Name-First: Vicente
Author-X-Name-Last: German-Soto
Author-Name: Mercedes Monfort
Author-X-Name-First: Mercedes
Author-X-Name-Last: Monfort
Author-Name: Javier Ordóñez
Author-X-Name-First: Javier
Author-X-Name-Last: Ordóñez
Title: Club convergence and inter-regional inequality in Mexico, 1940-2015
Abstract: 
 In this paper, we analyse the convergence patterns in inter-regional inequality and income per capita for the Mexican states over the period 1940–2015. To that end, we apply a time-series approach considering temporal and transitional heterogeneity. Results indicate that Mexican states do not converge to the same long-run equilibrium. Instead of overall convergence, we find club convergence for both regional inequality and income per capita. The existence of clubs means that measures aimed at reducing income inequality and promoting regional growth should consider the specific characteristics revealed in the convergence analyses. Furthermore, pro-growth regional policies in Mexico may not necessarily reduce inter-regional income inequality. Income disparities thus need to be specifically addressed through pro-poor regional policies.
Journal: Applied Economics
Pages: 598-608
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659491
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659491
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:598-608




Template-Type: ReDIF-Article 1.0
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Title: Payments data: do consumers want banks to keep them in a safe or turn them into gold?
Abstract: 
 For policymakers seeking to protect financial stability and financial institutions, it is key to know consumers’ attitudes towards payments data usage. This article provides detailed insight into these attitudes based on unique surveys held among Dutch consumers. Attitudes towards payments data usage by banks and the related factors depend on the purpose of the data use. For example, most people do not mind if their payments data are being used to enhance security but do not want these data to be shared with restaurants to get special offers. The selling of payments data by banks to other companies would result in a significant decline of trust in banks.
Journal: Applied Economics
Pages: 609-622
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659493
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659493
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:609-622




Template-Type: ReDIF-Article 1.0
Author-Name: Joana Passinhas
Author-X-Name-First: Joana
Author-X-Name-Last: Passinhas
Author-Name: Isabel Proença
Author-X-Name-First: Isabel
Author-X-Name-Last: Proença
Title: Measuring the gender disparities in unemployment dynamics during the recession: evidence from Portugal
Abstract: 
 This article researches gender differences in the incidence and persistence of unemployment during the debt crisis and recession in Portugal through estimating a dynamic random effects probit model to control for unobserved individual heterogeneity and for the ‘initial conditions’ problem. The estimation applies data from four waves of ICOR – the Survey on Income and Living Conditions between 2010 and 2013. We find strong evidence of persistence in unemployment alongside indications that men are more prone to enduring negative implications from previous periods of unemployment. Simultaneously, we find evidence of a greater likelihood of unemployment for women through a fixed effect designed to capture gender discrimination in unstable labour markets. Our results suggest that policies to boost employment should accommodate a gender dimension and also place a special emphasis on the long-term unemployed.
Journal: Applied Economics
Pages: 623-636
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659494
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659494
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:623-636




Template-Type: ReDIF-Article 1.0
Author-Name: Liyan Han
Author-X-Name-First: Liyan
Author-X-Name-Last: Han
Author-Name: Mengchao Qi
Author-X-Name-First: Mengchao
Author-X-Name-Last: Qi
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: Macroeconomic policy uncertainty shocks on the Chinese economy: a GVAR analysis
Abstract: 
 This article studies the spillovers of economic policy uncertainty (EPU) from developed economies to China in terms of the source, extent and persistence by estimating a global vector autoregressive (GVAR) model with both financial and trade variables acting as the transmission channels. Our findings confirm the existence of international transmissions of policy uncertainty, while the patterns differ markedly. The US EPU appears to be the most significant cause of the fall of export, industrial production, equity price and exchange rate, meanwhile, the EU EPU is also to be blamed for the depreciation of RMB. In contrast to industrial production, which shows the largest negative impact, Chinese inflation increases to a relatively smaller extent with the EPU shocks ranking as the US, Japanese and the EU. Regardless of the minor impact on a long-term interest rate, the short-term interest rate in China reacts positively to the European and US EPU shocks. Despite the independent national monetary policies, EPUs from the EU, Japan and the UK can decrease the Chinese monetary aggregate. In summary, the Chinese economy responds the most to the US EPU, especially to its inflation expectation disagreement component, whereas it responds the least to the UK EPU.
Journal: Applied Economics
Pages: 4907-4921
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1167828
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167828
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4907-4921




Template-Type: ReDIF-Article 1.0
Author-Name: William W. Chow
Author-X-Name-First: William W.
Author-X-Name-Last: Chow
Author-Name: Michael K. Fung
Author-X-Name-First: Michael K.
Author-X-Name-Last: Fung
Author-Name: Arnold C. S. Cheng
Author-X-Name-First: Arnold C. S.
Author-X-Name-Last: Cheng
Title: Convergence and spillover of house prices in Chinese cities
Abstract: 
 The issue of house price convergence in 34 Chinese cities is investigated. We augmented the convergence model with contemporaneous spatial dependence in house prices and found that price convergence and positive spatial spillover are both present. We explicitly addressed the endogeneity problem by introducing a Bayesian instrumental variable setup, which was estimated with particle filtering techniques. From a growth poles perspective, the empirical evidence indicates that the spread effect in regional house prices outweighs the backwash effect. The identified positive spatial spillover has two effects on the growth of house prices in Chinese cities. First, the spillover elevates the trajectories of the steady-state growth paths of house prices. Second, the spillover narrows the gaps between the growth paths of house prices in neighbouring cities. Shocks to the socio-economic variables of a city generate their own effects on domestic house prices that dominate the effects arising from cross-city price feedbacks, thus mitigating the prospect of level convergence. Our findings also suggest a collaborating role between time and spatial dependence parameters. The identification of inter-city spillover, which is a conditioning factor for regional house price convergence, offers implications to policies that are most likely to be effective in reducing regional disparity.
Journal: Applied Economics
Pages: 4922-4941
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1167829
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167829
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4922-4941




Template-Type: ReDIF-Article 1.0
Author-Name: Lee A. Smales
Author-X-Name-First: Lee A.
Author-X-Name-Last: Smales
Title: Time-varying relationship of news sentiment, implied volatility and stock returns
Abstract: 
 I examine the relationship between aggregate news sentiment, S&amp;P 500 index (SPX) returns, and changes in the implied volatility index (VIX). I find a significant negative contemporaneous relationship between changes in VIX and both news sentiment and stock returns. This relationship is asymmetric whereby changes in VIX are larger following negative news and/or stock market declines. Vector autoregression (VAR) analysis of the dynamics and cross-dependencies between variables reveals a strong positive relationship between previous and current period changes in implied volatility and stock returns, while current period and lagged news sentiment has a significant positive (negative) relationship with stock returns (changes in VIX). I develop a simple trading strategy whereby high (low) levels of implied volatility signal attractive opportunities to take short (long) positions in the underlying index, while extremely negative (positive) news sentiment signals opportunities to enter short (long) index positions. The investor fear gauge (VIX) appears to perform better than news sentiment measures in forecasting future returns.
Journal: Applied Economics
Pages: 4942-4960
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1167830
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167830
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4942-4960




Template-Type: ReDIF-Article 1.0
Author-Name: Hai Yue Liu
Author-X-Name-First: Hai Yue
Author-X-Name-Last: Liu
Author-Name: Ivan Deseatnicov
Author-X-Name-First: Ivan
Author-X-Name-Last: Deseatnicov
Title: Exchange rate and Chinese outward FDI
Abstract: 
 Did the exchange rate (ER) regime change that was announced by the Chinese government in 2005 lead to an increased sensitivity of Chinese multinational companies (MNCs) to ER fluctuations? To answer this question our article considers the effect of ER level, volatility and expectation on the Chinese outward foreign direct investment (OFDI) activities in 119 countries for a period of 2003–2013. We find striking evidence that Chinese Renminbi appreciation has a negative impact on Chinese outward FDI flows, and both higher ER volatility and expected depreciation encourage Chinese outward FDI flows. We introduce two complementary effects that explain these findings: repatriation effect and mercantilist effect. In view of the recent debate about the growing importance of Chinese Renminbi in the international transactions we believe that our research results shed light on the possible impact of ER policies on Chinese MNCs behaviour and global FDI distribution.
Journal: Applied Economics
Pages: 4961-4976
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1167831
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167831
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4961-4976




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Molnár
Author-X-Name-First: Peter
Author-X-Name-Last: Molnár
Title: High-low range in GARCH models of stock return volatility
Abstract: 
 We suggest a simple and general way to improve the GARCH volatility models using the intraday range between the highest and the lowest price to proxy volatility. We illustrate the method by modifying a GARCH(1,1) model to a range-GARCH(1,1) model. Our empirical analysis conducted on stocks, stock indices and simulated data shows that the range-GARCH(1,1) model performs significantly better than the standard GARCH(1,1) model both in terms of in-sample fit and out-of-sample forecasting ability.
Journal: Applied Economics
Pages: 4977-4991
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170929
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170929
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4977-4991




Template-Type: ReDIF-Article 1.0
Author-Name: Ying Fan
Author-X-Name-First: Ying
Author-X-Name-Last: Fan
Author-Name: Yin-Peng Liu
Author-X-Name-First: Yin-Peng
Author-X-Name-Last: Liu
Author-Name: Jian-Feng Guo
Author-X-Name-First: Jian-Feng
Author-X-Name-Last: Guo
Title: How to explain carbon price using market micro-behaviour?
Abstract: 
 In this article, we analyse the micro-behaviours of the emitting companies and financial intermediaries in the European Union emissions trading scheme (EU-ETS) and their influence on carbon prices. Based on the full-sample community independent transaction log (CITL), the micro-behaviours can be observed in a closed system. The micro-behaviours of the emitting companies are divided into ‘compliance trading’ and ‘non-compliance trading’ based on the emitting companies’ trading motivations. The micro-behaviours of the financial intermediaries are measured by their influence on the total supply and demand in the market. Then, an AR-GARCH model is established to examine the dynamic relationships between carbon prices and the micro-behaviours of the emitting companies and financial intermediaries. The estimation results suggest that the prices–behaviours relationship is significant. Other important findings are as follows: (1) the mean value of carbon prices positively depends on the compliance trading of the emitting companies and the micro-behaviours of the financial intermediaries; (2) non-compliance buying increases the volatility of carbon prices, while the non-compliance selling stabilizes it and (3) the micro-behaviours of the emitting companies in the lower 50% in terms of emission levels have no significant influence on the mean carbon price, but their non-compliance buying stabilizes the carbon price.
Journal: Applied Economics
Pages: 4992-5007
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170930
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170930
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4992-5007




Template-Type: ReDIF-Article 1.0
Author-Name: Pablo A. Garcia-Fuentes
Author-X-Name-First: Pablo A.
Author-X-Name-Last: Garcia-Fuentes
Author-Name: P. Lynn Kennedy
Author-X-Name-First: P. Lynn
Author-X-Name-Last: Kennedy
Author-Name: Gustavo F. C. Ferreira
Author-X-Name-First: Gustavo F. C.
Author-X-Name-Last: Ferreira
Title: U.S. foreign direct investment in Latin America and the Caribbean: a case of remittances and market size
Abstract: 
 This article investigates the effect of remittances on U.S. foreign direct investment (FDI) flows to Latin America and the Caribbean (LAC). It covers 26 countries for the period 1983–2010. The results show a positive and significant impact of remittances on U.S. FDI flows. However, this effect depends upon the level of gross domestic product (GDP) per capita of the host country. On average, the results show that increasing remittances by one standard deviation increases U.S. FDI flows by 0.44 percent a year. Also, host country demand positively affects U.S. FDI flows, which supports the market size hypothesis.
Journal: Applied Economics
Pages: 5008-5021
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170931
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170931
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:5008-5021




Template-Type: ReDIF-Article 1.0
Author-Name: Toni Mora
Author-X-Name-First: Toni
Author-X-Name-Last: Mora
Author-Name: Francesc Prior
Author-X-Name-First: Francesc
Author-X-Name-Last: Prior
Title: The impact of mobile financial services’ usage on microfinance delinquency
Abstract: 
 This paper studies the impact of Mobile Financial Systems’ usage on microcredit delinquency ratios in Tunisia by using either a two-part model or matching econometric procedures. Our large dataset contains all of the administrative registers that belong to the six branches of Enda, the incumbent Institution leader in Tunisia. We find a significant reduction of 4.92 days of late repayment for an average user of MFS in an environment where 15% of loans have been paid late at least once. We foresee a tremendous opportunity to improve the MFIs’ repayment ratios and, consequently, provide microcredit customers with more financing for income generating activities.
Journal: Applied Economics
Pages: 5354-5365
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486990
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486990
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5354-5365




Template-Type: ReDIF-Article 1.0
Author-Name: Kendrick Morales
Author-X-Name-First: Kendrick
Author-X-Name-Last: Morales
Author-Name: Prosper Raynold
Author-X-Name-First: Prosper
Author-X-Name-Last: Raynold
Author-Name: Jing Li
Author-X-Name-First: Jing
Author-X-Name-Last: Li
Title: The empirical relationship between commitment enhancement devices and terrorism
Abstract: 
 An extant theoretical literature attributes the high lethality of violent extremist religious sects (VERSs) to their comparative advantage in assembling coalitions of highly committed operatives and identifies sacrifice and stigma (S&amp;S) and social service provision (SSP) as the primary commitment enhancement devices VERSs employ. However, lack of direct measures of the VERSs’ deployment of these devices has impeded efforts to test the hypothesized effects of S&amp;S and SSP on terrorism. This article exploits the relationship between exogenous variation in the marginal productivities of S&amp;S and SSP as inputs in the production of commitment and variation in VERSs’ employment of these inputs to identify proxies for S&amp;S and SSP. Using data from 158 countries, our cross-sectional estimates of the effects of S&amp;S and SSP on the impact of terrorism are significant and larger than the effects of geographic and political variables that are consistently reported to be both significant and substantial.
Journal: Applied Economics
Pages: 5366-5380
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486991
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486991
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5366-5380




Template-Type: ReDIF-Article 1.0
Author-Name: Bright Gershion Godigbe
Author-X-Name-First: Bright Gershion
Author-X-Name-Last: Godigbe
Author-Name: Chin Man Chui
Author-X-Name-First: Chin Man
Author-X-Name-Last: Chui
Author-Name: Chih-Liang Liu
Author-X-Name-First: Chih-Liang
Author-X-Name-Last: Liu
Title: Directors network centrality and earnings quality
Abstract: 
 This study examines whether firms with network central boards of directors behave differently from other firms in terms of financial reporting quality. We find that earnings quality among firms is low when board networks are channels of incorrect information transmission (including earnings management information) and for firms whose directors are awarded equity-based compensation have connections through boardroom networks, but earnings quality is better for firms with good performance in spite of their networks. These results are robust to controlling for firm information environment, growth, size, age, leverage, performance, volatility in firm operations, and corporate governance.
Journal: Applied Economics
Pages: 5381-5400
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486992
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486992
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5381-5400




Template-Type: ReDIF-Article 1.0
Author-Name: Chaoqun Ma
Author-X-Name-First: Chaoqun
Author-X-Name-Last: Ma
Author-Name: Shisong Xiao
Author-X-Name-First: Shisong
Author-X-Name-Last: Xiao
Author-Name: Zonggang Ma
Author-X-Name-First: Zonggang
Author-X-Name-Last: Ma
Title: Investor sentiment and the prediction of stock returns: a quantile regression approach
Abstract: 
 We employ quantile regression to provide a detailed picture of the stock return forecasting ability of investor sentiment. We find that investor sentiment predicts aggregate stock returns at lower quantiles. However, the forecasting power is lost at upper quantiles. The results are robust after controlling for a comprehensive set of macroeconomic and financial predictors and for characteristic portfolios. We also show that investor sentiment consists mainly of cash flow news and contains little information about discount rate news. The ability to forecast cash flows increases gradually from the lower quantiles to upper quantiles. Our results do not support that the ability of investor sentiment to predict stock returns comes from a rational forecast of future cash flows.
Journal: Applied Economics
Pages: 5401-5415
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486993
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486993
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5401-5415




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Fackler
Author-X-Name-First: Daniel
Author-X-Name-Last: Fackler
Author-Name: Steffen Müller
Author-X-Name-First: Steffen
Author-X-Name-Last: Müller
Author-Name: Jens Stegmaier
Author-X-Name-First: Jens
Author-X-Name-Last: Stegmaier
Title: Plant-level employment development before collective displacements: comparing mass layoffs, plant closures and bankruptcies
Abstract: 
 This article analyzes the development of employment levels and worker flows before bankruptcies, plant closure without bankruptcies and mass layoffs. Utilizing administrative plant-level data for Germany, we find no systematic employment reductions prior to mass layoffs, a strong and long-lasting reduction prior to closures, and a much shorter shadow of death preceding bankruptcies. Employment reductions in closing plants, in contrast to bankruptcies and mass layoffs, do not come along with increased worker flows. These patterns point to an intended and controlled shrinking strategy for closures without bankruptcy and to an unintended collapse for bankruptcies and mass layoffs.
Journal: Applied Economics
Pages: 5416-5435
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486994
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486994
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5416-5435




Template-Type: ReDIF-Article 1.0
Author-Name: Chen Ma
Author-X-Name-First: Chen
Author-X-Name-Last: Ma
Author-Name: Hui Du
Author-X-Name-First: Hui
Author-X-Name-Last: Du
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Title: Chinese accounting restatement and the timeliness of annual report
Abstract: 
 Chinese accounting restatements are mainly disclosed in companies’ annual reports due to unique Chinese institutional background and regulatory setting. China provides the scheduled disclosure system for annual report, which is seldom found in any other countries. The difference between actual filing date and scheduled date as timeliness proxy can better depict how annual report is delayed by sudden events such as restatements. Using manually collected data of accounting restatements from 2004 to 2014, we study the association between Chinese accounting restatement and the timeliness of annual report. The results indicate that with an accounting restatement, a company takes longer to file annual reports than scheduled, suggesting a negative association between Chinese accounting restatements and timeliness of annual reports. We also find that this result is not altered whether CEO/chairman or auditor is the same between misstatement period and restatement period. The results are robust when other timeliness measures are used. When further examining the association between various restatement characteristics and timeliness of annual reports, we find an overall negative association between restatement severity and the timeliness of annual reports. We contribute to the existing accounting restatement literature from international perspective with evidence that restatements delay the timeliness of financial reporting.
Journal: Applied Economics
Pages: 5436-5453
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486995
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486995
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5436-5453




Template-Type: ReDIF-Article 1.0
Author-Name: Brenda Gannon
Author-X-Name-First: Brenda
Author-X-Name-Last: Gannon
Author-Name: James Banks
Author-X-Name-First: James
Author-X-Name-Last: Banks
Author-Name: James Nazroo
Author-X-Name-First: James
Author-X-Name-Last: Nazroo
Author-Name: Luke Munford
Author-X-Name-First: Luke
Author-X-Name-Last: Munford
Title: An econometric analysis of cognitive impairment and healthcare utilization in the ageing population
Abstract: 
 The ageing population is a major concern for policy makers, with the ever-increasing strains placed on health budgets. One overlooked area of research is the impact that cognitive impairment (an early marker of potential dementia onset) has on the healthcare utilization of an ageing population. Based on the theoretical micro-economic foundations of healthcare demand, we study the relationship between cognitive functioning and impairment, measured by word recall and changes thereof, and healthcare utilization among over 50s in nine European countries. The contribution of this article is to produce estimates for cognitive functioning and impairment, as opposed to full dementia, in the context of healthcare utilization.We apply regression models to healthcare utilization data from Waves 1, 2 and 4 of the Survey of Health, Ageing and Retirement in Europe and find that recalling one additional word is associated with a reduction in visits to a medical doctor of 0.32, per year (p&lt;0.01). Even after controlling for self-assessed health, this association is strong at just over 0.1 visits – this is the additional impact, over and above the average number of visits for similar individuals without cognitive impairment.
Journal: Applied Economics
Pages: 5454-5463
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486996
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486996
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5454-5463




Template-Type: ReDIF-Article 1.0
Author-Name: Stavros Degiannakis
Author-X-Name-First: Stavros
Author-X-Name-Last: Degiannakis
Author-Name: George Filis
Author-X-Name-First: George
Author-X-Name-Last: Filis
Author-Name: George Palaiodimos
Author-X-Name-First: George
Author-X-Name-Last: Palaiodimos
Title: Investments and uncertainty revisited: the case of the US economy
Abstract: 
 This article examines the relationship between investments and uncertainty for the US economy, as the latter is approximated by consumer sentiment, purchasing managers’ prospects and economic policy uncertainty. Contrary to the existing literature, we provide evidence that this relationship is time varying. The time variation is attributed to the observed temporal replacement effect between private and public investments. Furthermore, we show that there are two distinct correlation regimes in this relationship and unless we concentrate on them, we cannot fully unravel the real link between uncertainty and investments. Finally, we examine whether the use of the two correlation regimes provides better forecasts for investments compared to the use of the uncertainty indices alone. The forecasting exercise reveals that the use of correlation regimes provides statistically superior out-of-sample forecasts.
Journal: Applied Economics
Pages: 4521-4529
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284995
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284995
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4521-4529




Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Luis Antonio Monteros
Author-X-Name-First: Luis Antonio
Author-X-Name-Last: Monteros
Title: Event-study analysis by using dynamic conditional score models
Abstract: 
 This article considers the most important information technology (IT) products in order to perform an event-study analysis of the out-of-sample predictability of IT stock returns. We define two subperiods, the estimation and forecast windows, for each IT product that are separated by the product release date. We investigate whether post-release-date returns can be predicted by using data on pre-release-date returns. We use static one-step-ahead density forecasting. We compare the forecast performance of autoregressive moving average (ARMA) plus generalized autoregressive conditional heteroscedasticity (GARCH) and quasi-ARMA (QARMA) plus Beta-$$t$$t
-EGARCH (exponential-GARCH). QARMA plus Beta-$$t$$t
-EGARCH belongs to the family of dynamic conditional score (DCS) models. We find that the in-sample statistical performance of DCS is superior to that of ARMA plus GARCH for most of the IT stocks. We also find that the out-of-sample density predictive performance of ARMA plus GARCH is never significantly superior to that of DCS. However, the predictive performance of DCS significantly dominates that of ARMA plus GARCH for several IT products. We undertake a Monte Carlo value-at-risk (VaR) application of our results to Windows 95 of Microsoft.
Journal: Applied Economics
Pages: 4530-4541
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284996
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284996
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4530-4541




Template-Type: ReDIF-Article 1.0
Author-Name: David L. Anderson
Author-X-Name-First: David L.
Author-X-Name-Last: Anderson
Author-Name: John Tressler
Author-X-Name-First: John
Author-X-Name-Last: Tressler
Title: Researcher rank stability across alternative output measurement schemes in the context of a time limited research evaluation: the New Zealand case
Abstract: 
 This article focuses on the stability of rankings of academics by research productivity in the context of short-term decision-making. In particular, the growing use of national research assessment exercises (NRAE) has increased interest in identifying the contributions of individual researchers to an assessment unit’s output and ranking. The article concentrates on the assessment of individuals using plausible journal ranking schemes. We find that despite statistical evidence of a high degree of stability across journal ranking schemes as indicated by rank correlation coefficients, the particular ranking scheme used is of great importance to individual researchers. This applies with particular force to academics working within a NRAE environment based on individual assessment such as New Zealand’s PBRF.
Journal: Applied Economics
Pages: 4542-4553
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284997
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284997
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4542-4553




Template-Type: ReDIF-Article 1.0
Author-Name: Mardi Dungey
Author-X-Name-First: Mardi
Author-X-Name-Last: Dungey
Author-Name: Jan P.A.M. Jacobs
Author-X-Name-First: Jan P.A.M.
Author-X-Name-Last: Jacobs
Author-Name: Jing Tian
Author-X-Name-First: Jing
Author-X-Name-Last: Tian
Title: Forecasting output gaps in the G-7 countries: the role of correlated innovations and structural breaks
Abstract: 
 Trend GDP and output gaps play an important role in fiscal and monetary policy formulation, often including the need for forecasts. In this article, we focus on forecasting trend GDP and output gaps with Beveridge-Nelson trend-cycle decompositions trend-cycle decompositions and investigate how these are affected by assumptions concerning correlated innovations and structural breaks. We evaluate expanding window, one-step-ahead forecasts indirectly for the G-7 countries on the basis of real GDP growth rate forecasts. We find that correlated innovations affect real GDP growth rate forecasts positively, while allowing for structural breaks works for some countries but not for all. In the face of uncertainty, the evidence supports that in making forecasts of trends and output gap policy-makers should focus on allowing for the correlation of shocks as an order of priority higher than unknown structural breaks.
Journal: Applied Economics
Pages: 4554-4566
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284998
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284998
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4554-4566




Template-Type: ReDIF-Article 1.0
Author-Name: Trond Bjørndal
Author-X-Name-First: Trond
Author-X-Name-Last: Bjørndal
Author-Name: Jordi Guillen
Author-X-Name-First: Jordi
Author-X-Name-Last: Guillen
Title: Market integration between wild and farmed seabream and seabass in Spain
Abstract: 
 Gilthead seabream (Sparus aurata) and European seabass (Dicentrarchus labrax) production from aquaculture has been increasing since the 1990s. Nowadays, about 95% of their production comes from aquaculture. In this study, we analyse if the rapid growth in the aquaculture production of both species has affected the capture fisheries prices of both species. In other words, we investigate if there is market integration between wild and farmed gilthead seabream and European seabass. In order to do this analysis, we use data from the main gilthead seabream and European seabass markets in Spain. The results show that there is no market integration between wild and farmed gilthead seabream and European seabass. This implies that capture fisheries are not affected by increases in the aquaculture production of both species. But gilthead seabream and European seabass aquaculture producers face a smaller demand that explains the difficulties this aquaculture segment is facing.
Journal: Applied Economics
Pages: 4567-4578
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1287856
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287856
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4567-4578




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Carlos Barros
Author-X-Name-First: Carlos
Author-X-Name-Last: Barros
Author-Name: Dercio Mandlaze
Author-X-Name-First: Dercio
Author-X-Name-Last: Mandlaze
Title: A performance assessment of Mozambique banks: a Bayesian stochastic frontier
Abstract: 
 This article analyses the technical efficiency of Mozambican banks from 2005 to 2014 with a Bayesian stochastic frontier model. The intermediate approach is adopted and the results reveal that efficiency varies amongst the banks analysed. Foreign ownership of Mozambican banks is also analysed, as is public ownership, the role of mergers and acquisitions, big banks and active dividend policy within the context of bank costs. Policy implications are then derived.
Journal: Applied Economics
Pages: 4579-4587
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1287857
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287857
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4579-4587




Template-Type: ReDIF-Article 1.0
Author-Name: Abhay K. Singh
Author-X-Name-First: Abhay K.
Author-X-Name-Last: Singh
Author-Name: David E. Allen
Author-X-Name-First: David E.
Author-X-Name-Last: Allen
Author-Name: Robert J. Powell
Author-X-Name-First: Robert J.
Author-X-Name-Last: Powell
Title: Tail dependence analysis of stock markets using extreme value theory
Abstract: 
 Financial risk modelling frequently uses the assumption of a normal distribution when considering the return series which is inefficient if the data is not normally distributed or if it exhibits extreme tails. Estimation of tail dependence between financial assets plays a vital role in various aspects of financial risk modelling including portfolio theory and hedging amongst applications. Extreme Value Theory (EVT) provides well established methods for considering univariate and multivariate tail distributions which are useful for forecasting financial risk or modelling the tail dependence of risky assets. The empirical analysis in this article uses nonparametric measures based on bivariate EVT to investigate asymptotic dependence and estimate the degree of tail dependence of the ASX-All Ordinaries daily returns with four other international markets, viz., the S&amp;P-500, Nikkei-225, DAX-30 and Heng-Seng for both extreme right and left tails of the return distribution. It is investigated whether the asymptotic dependence between these markets is related to the heteroscedasticity present in the logarithmic return series using GARCH filters. The empirical evidence shows that the asymptotic extreme tail dependence between stock markets does not necessarily exist and rather can be associated with the heteroscedasticity present in the financial time series of the various stock markets.
Journal: Applied Economics
Pages: 4588-4599
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1287858
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287858
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4588-4599




Template-Type: ReDIF-Article 1.0
Author-Name: Edmond Berisha
Author-X-Name-First: Edmond
Author-X-Name-Last: Berisha
Author-Name: John Meszaros
Author-X-Name-First: John
Author-X-Name-Last: Meszaros
Author-Name: Zaman Zamanian
Author-X-Name-First: Zaman
Author-X-Name-Last: Zamanian
Title: Quantitative easing and median income: a state-level analysis
Abstract: 
 Due to the Great Recession, the Federal Reserve engaged in unconventional monetary policy (QE) to fight the effects of the economic downturn. Literature asserts that QE did have impacts on economic growth and helped alleviate the effects of the recession. Recently, critics have asserted that the benefits of QE may not have been equally distributed across households. In this paper, we build a state-level dataset to investigate the dynamics of QE measures and median income across the U.S states. The findings indicate that, for the period 2008 to 2014, there is statistical evidence that increases in the Federal Reserve’s balance sheet correspond with higher nominal median income. However, once we adjust for inflation, the results become statistically insignificant and the impact of QE on median income becomes almost zero.
Journal: Applied Economics
Pages: 4564-4575
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2018.1564118
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564118
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4564-4575




Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Author-Name: Jingyi Jia
Author-X-Name-First: Jingyi
Author-X-Name-Last: Jia
Author-Name: Hadi Movaghari
Author-X-Name-First: Hadi
Author-X-Name-Last: Movaghari
Title: Determinants of dividend payout and dividend propensity in an emerging market, Iran: an application of the LASSO
Abstract: 
 Accurate prediction of dividends is important for market participants such as investors, firm managers, and monitoring authorities, as they can, respectively, invest, manage dividend decisions, and monitor dividend policies more effectively. We identify the most relevant variables for predicting the dividend payout of the firms in an emerging market, Iran, using the least absolute shrinkage and selection operator (LASSO). The advantages of the LASSO include: enhancing the prediction accuracy of the dividend model, improving interpretation of the results, and applicability to high-dimensional data. We obtain several results. First, some fundamental determinants of dividends in the industrialized economies such as market-to-book ratio and current ratio, do not play a role in deciding dividends in Iran. Second, LASSO-selected variables outperform the variables commonly used in the literature in terms of model fit and prediction accuracy. Third, business risk, leverage, return on assets and effective tax rate are the most important predictors of dividend propensity of the Iranian firms. Fourth, if the support vector machine algorithm, an often-used classification method, is combined with LASSO-selected variables, it can better discriminate between dividend-paying and dividend non-paying firms than other methods such as logistic regression and linear discriminant analysis.Abbreviations: LASSO: Least Absolute Shrinkage and Selection Operator; TSE: Tehran Stock Exchange; RMSE: Root Mean Squared Errors; MAE: Mean Absolute Errors; ROC: Receiver Operating Characteristics; GMM: Generalized Method of Moments; MENA: Middle East and North Africa region; AIC: Akaike Information Criterion; BIC: Bayesian Information Criterion; LARS: Least Angel Regression; OLS: Ordinary Least Squares; AUC: Area Under Curve; BS: Brier Score ; OA: Overall Accuracy; LDA: Linear Discriminant Analysis; SVM: Support Vector Machine algorithm; LR: Logistic Regression.
Journal: Applied Economics
Pages: 4576-4596
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593315
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593315
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4576-4596




Template-Type: ReDIF-Article 1.0
Author-Name: Abidin Alhassan
Author-X-Name-First: Abidin
Author-X-Name-Last: Alhassan
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Author-Name: Krishna Reddy
Author-X-Name-First: Krishna
Author-X-Name-Last: Reddy
Author-Name: Geeta Duppati
Author-X-Name-First: Geeta
Author-X-Name-Last: Duppati
Title: The impact of formal financial inclusion on informal financial intermediation and cash preference: evidence from Africa
Abstract: 
 This paper examines the effect of formal financial intermediation (inclusion) on informal financial intermediation and the use of cash for economic activities. Using data from the Global Findex 2014, we examine whether the use of formal financial intermediaries reduces cash preference and the use of informal financial intermediaries. Our empirical results show that informal financial intermediation is positively associated with formal financial inclusion. This indicates that the relationship between informal and formal financial intermediation is complementary rather than a trade-off, which demonstrates the importance of informal finance plays in the financial system of Africa. Moreover, the use of formal financial intermediaries significantly reduces the preference for holding cash, implying that a robust financial system infrastructure has the potential of mobilizing excess liquidity in the informal economy of Africa for growth and development.
Journal: Applied Economics
Pages: 4597-4614
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593316
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593316
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4597-4614




Template-Type: ReDIF-Article 1.0
Author-Name: Ruoye Yang
Author-X-Name-First: Ruoye
Author-X-Name-Last: Yang
Author-Name: Kellie Curry Raper
Author-X-Name-First: Kellie Curry
Author-X-Name-Last: Raper
Author-Name: J. Ross Pruitt
Author-X-Name-First: J. Ross
Author-X-Name-Last: Pruitt
Title: The influence of recession and income strata on consumer demand for protein sources
Abstract: 
 Though meat products are considered the primary sources of protein in the U.S., people consume a variety of protein sources including meat, fish, eggs, dairy products and beans. This study expands the typical meat demand study by including alternate protein sources. We implement state-space modelling and Bai-Perron tests to examine structural change in U.S. expenditure patterns on protein sources across pre- and post-recessionary periods. Results are integrated into a Time-Varying Almost Ideal Demand System (AIDS) including beef, pork, poultry, fish and seafood, eggs, dairy products, dried beans, and an ‘other meat’ composite. Expenditure elasticities generally become relatively more elastic post-recession for protein sources across all income quintiles, with the largest changes in beef and pork. The lowest income group exhibits the least change in own-price and in expenditure elasticities, likely an indication of already limited flexibility.
Journal: Applied Economics
Pages: 4615-4628
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593940
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593940
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4615-4628




Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Author-Name: Inkoo Lee
Author-X-Name-First: Inkoo
Author-X-Name-Last: Lee
Author-Name: Soon-Cheul Lee
Author-X-Name-First: Soon-Cheul
Author-X-Name-Last: Lee
Title: Explaining time variation in geographic price dispersion
Abstract: 
 The pattern of price dispersion significantly varies over time and across locations. Using a detailed dataset with product-level retail prices, we examine the role of time-varying factors in shaping the time variation of price dispersion. We find that price dispersion variation in an integrated region is mainly driven by oil prices, while the variation in a segmented region is attributed to dispersion in real income. We also find that dispersion in value-added tax rates explains a significant portion of price dispersion fluctuations in both geographic dimensions. This paper offers new evindence on the trade-off that exists for the role of time-varying factors as contributors to price dispersion variation by highlighting their relative importance across different dimensions of economic geography.
Journal: Applied Economics
Pages: 4629-4641
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593941
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593941
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4629-4641




Template-Type: ReDIF-Article 1.0
Author-Name: Rébecca Stekelorum
Author-X-Name-First: Rébecca
Author-X-Name-Last: Stekelorum
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Jamal Elbaz
Author-X-Name-First: Jamal
Author-X-Name-Last: Elbaz
Title: Transmission of CSR requirements in supply chains: investigating the multiple mediating effects of CSR activities in SMEs
Abstract: 
 In recent years, scholars have increasingly turned their attention to the separate areas of corporate social responsibility (CSR) and supply chain management (SCM). However, little scholarly attention has been paid to the transmission of CSR requirements from a small to medium-sized enterprises (SME) perspective. Drawing on institutional and innovation diffusion theories, this paper investigates to what extent the CSR requirements of customers influence the CSR activities of SMEs and their CSR requirements toward their own suppliers. Multiple mediation analysis was performed on data from a sample of 146,060 French SMEs. The findings indicate that the CSR requirements of customers have a direct negative effect on SMEs’ CSR requirements toward suppliers. However, the relationship becomes positive when we take into account the mediating role of the SMEs’ own CSR activities (i.e. economic, social and environmental activities). Furthermore, the study reveals that the indirect effect through economic CSR activities is the greatest, followed by social and then environmental CSR activities. Our main contribution is that implementing CSR activities within SMEs is a necessary step so that SMEs can be brokers in the transmission of CSR requirements in the supply chain.
Journal: Applied Economics
Pages: 4642-4657
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593942
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593942
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4642-4657




Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Wen Zhang
Author-X-Name-First: Wen-Wen
Author-X-Name-Last: Zhang
Author-Name: Basil Sharp
Author-X-Name-First: Basil
Author-X-Name-Last: Sharp
Author-Name: Shi-Chun Xu
Author-X-Name-First: Shi-Chun
Author-X-Name-Last: Xu
Title: Does economic growth and energy consumption drive environmental degradation in China’s 31 provinces? New evidence from a spatial econometric perspective
Abstract: 
 The panel data analysis points to economic and social factors contributing to NOx, PM2.5, PM10, SO2, and VOCs in China’s 31 provinces. The spatial correlation analysis using Global and Local Moran’s I values indicates the existence of a significant and positive spatial autocorrelation with respect to environment, economy and energy, and the high spatial correlation is evident in the eastern region, covering the northern part of Yangtze River Delta, Huaihai Economic Zone, and the lower reaches of the Yellow River Economic Belt. The empirical estimation is performed through spatial lag and spatial Durbin models. All emitted air pollutants in 31 provinces have significant spatial dependence and strong spillover effects. There is an inverted U-shaped relationship between emitted air pollutants (NOx, PM10, VOCs, and PM2.5) and per capita GDP, which follows the EKC hypothesis. The relationship between SO2 and per capita GDP does not follow the EKC hypothesis. There is a positive relationship between pollutant emissions and coal consumption, which is consistent with current studies for various countries like Canada, Denmark, UK and US and regions like New York State. However, the effects of science and technology investment on air pollutants are mostly positive, which is not as policy expected.
Journal: Applied Economics
Pages: 4658-4671
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593943
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593943
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4658-4671




Template-Type: ReDIF-Article 1.0
Author-Name: Maxime Clémenceau
Author-X-Name-First: Maxime
Author-X-Name-Last: Clémenceau
Author-Name: Nils Soguel
Author-X-Name-First: Nils
Author-X-Name-Last: Soguel
Title: Does personal background influence a finance minister to cook the books? An investigation of creative accounting in Swiss cantons
Abstract: 
 This article aims to identify the factors influencing the use of creative accounting in the public sector. Its distinctive feature is that it sheds light on creative accounting when used, not to hide public deficits, but to conceal surpluses. It especially explores the impact of the finance minister’s (FM)’s background on the phenomenon. We take advantage of the quasi-experimental settings of the Swiss cantons in which the financial management act sets out the possibility of implementing certain accounting gimmicks, including mainly additional ‘depreciation’ charges. These charges, which are depreciations in name only, enable the FM to artificially inflate expenses, thus increasing the deficit or reducing the surplus. Our panel data set of the 26 cantons over the period 1980–2012 includes a new data set of creative accounting and of 116 cantonal FMs. Our results indicate that the FMs cook the books irrespective of their personal or ideological background with the exception that trained economists tend to apply creative accounting more. Additionally, stringent fiscal rules urge FMs towards more surplus-hiding accounting.
Journal: Applied Economics
Pages: 941-953
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208360
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208360
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:941-953




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro de Araujo
Author-X-Name-First: Pedro
Author-X-Name-Last: de Araujo
Author-Name: Kirby I. Leyshon
Author-X-Name-First: Kirby I.
Author-X-Name-Last: Leyshon
Title: The impact of international information disclosure requirements on market discipline
Abstract: 
 Financial regulators are challenged with finding the most efficient and effective ways to monitor banks given an expanding and complex international financial system. Market discipline has grown in importance as a way to discourage banks from taking on unnecessary risk. One of the main drivers of market discipline is information disclosure. While the literature on market discipline is expansive, there are no known studies on the impact of individual information disclosure requirements on market discipline. Our study investigates which specific disclosure requirements influence financial investors to discipline banks and which do not. We find that information disclosure requirements primarily reduce or have no impact on market discipline practices.
Journal: Applied Economics
Pages: 954-971
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208361
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208361
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:954-971




Template-Type: ReDIF-Article 1.0
Author-Name: David Matesanz Gomez
Author-X-Name-First: David
Author-X-Name-Last: Matesanz Gomez
Author-Name: Hernan J. Ferrari
Author-X-Name-First: Hernan J.
Author-X-Name-Last: Ferrari
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Author-Name: Guillermo J. Ortega
Author-X-Name-First: Guillermo J.
Author-X-Name-Last: Ortega
Title: Synchronization and diversity in business cycles: a network analysis of the European Union
Abstract: 
 In this article, we use a correlation matrix and its internal networks to analyse business cycle synchronization across Europe since 2000. This methodology allows us to summarize individual country interactions and co-movements while also capturing the existing heterogeneity of connectivity within the European economic system. Our results indicate that synchronization of the euro zone countries remained stable from 1999 until the current financial crisis, after which co-movements increased sharply and synchronization rose to the highest in the time sample. By endogenously identifying clusters of countries with close connections in their business cycle, we also refute the commonly accepted notion of identifiable core and peripheral euro zone countries.
Journal: Applied Economics
Pages: 972-986
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210765
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210765
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:972-986




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Bünnings
Author-X-Name-First: Christian
Author-X-Name-Last: Bünnings
Title: Does new health information affect health behaviour? The effect of health events on smoking cessation
Abstract: 
 This article empirically assesses the role of new health information in the decision to quit smoking. Using individual level data from the Swiss Household Panel, health information is proxied by three different types of health events: physical health problems, mental disorders, and accidents. Exploiting retrospectively reported information on smoking behaviour, smoking cessation is modelled using a discrete time hazard model that also accounts for estimation problems arising from almost quasi-complete separation in the data. The empirical results yield robust evidence that general health problems increase the probability of instantaneous smoking cessation. Differentiating between the type of health event reveals that the overall effect is mainly driven by physical health events.
Journal: Applied Economics
Pages: 987-1000
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210766
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210766
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:987-1000




Template-Type: ReDIF-Article 1.0
Author-Name: Chung Choe
Author-X-Name-First: Chung
Author-X-Name-Last: Choe
Author-Name: Marjorie L. Baldwin
Author-X-Name-First: Marjorie L.
Author-X-Name-Last: Baldwin
Title: Duration of disability, job mismatch and employment outcomes
Abstract: 
 Workers with disabilities have functional limitations that affect their productivity in some, but not necessarily all, jobs. Workers who find a job that is a good match for their functional limitations (i.e. a job where their limitations have little or no impact on important job functions) should expect better employment outcomes (e.g. higher wages, longer job tenure) than workers with similar disabilities who are mismatched in their jobs. Merging data from the Survey of Income and Program Participation with O*Net data on job demands, we construct two continuous measures of job mismatch for workers with physical disabilities. We then extend the literature on disability and employment by exploring relationships between duration of disability, job mismatch, wages and hours worked. The results indicate that workers with long durations of disability are employed in jobs that are a better match to their physical limitations than are similar workers with shorter durations of disability. And, workers who are mismatched earn lower wages and work fewer hours than their counterparts whose jobs are a better match. Overall, the findings suggest that disability employment policies should include systematic efforts to help workers with disabilities find good job matches.
Journal: Applied Economics
Pages: 1001-1015
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210767
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210767
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:1001-1015




Template-Type: ReDIF-Article 1.0
Author-Name: Seongjin Park
Author-X-Name-First: Seongjin
Author-X-Name-Last: Park
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Author-Name: Kellie Curry Raper
Author-X-Name-First: Kellie Curry
Author-X-Name-Last: Raper
Title: Modelling upstream and downstream market power in bilateral oligopoly
Abstract: 
 This article develops a general model that estimates market power exertion in a bilateral market relationship for processors and retailers where each may also have market power in their primary input market and output markets, respectively. Monte Carlo experiments are used to generate industry data for market structures such as perfect competition, monopoly, monopsony, bilateral imperfect competition with an integrated processor/retailer, bilateral imperfect competition with separate processor and retailer, and bilateral imperfect competition with four adjacent upstream and downstream markets. Then, new empirical industrial organization models are estimated using the data with models that match the market structure under which the data were generated (true) and with models that reflect alternative market structures (alternative). The general model is derived using the production function approach without imposing the fixed proportion assumption. Monte Carlo simulation results indicate that the general model is preferred to alternative models that presume competitive behaviour by processors in primary input procurement and by retailers in the output market. Results indicate that less flexible models lead to biased market power estimates in the presence of market power in the corresponding input and output markets.
Journal: Applied Economics
Pages: 1016-1031
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210768
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210768
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:1016-1031




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolin Lu
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Lu
Author-Name: Kun Guo
Author-X-Name-First: Kun
Author-X-Name-Last: Guo
Author-Name: Zhi Dong
Author-X-Name-First: Zhi
Author-X-Name-Last: Dong
Author-Name: Xuan Wang
Author-X-Name-First: Xuan
Author-X-Name-Last: Wang
Title: Financial development and relationship evolvement among money supply, economic growth and inflation: a comparative study from the U.S. and China
Abstract: 
 With the rapid development of financial markets, economic financialization degree can no longer be ignored for its influence on the relationship among money supply, economic growth and inflation. Combined with the horizontal comparison of China, this article concentrates on the financial development and evolution from the period of industrialization to economic financialization in the U.S., systematic and comprehensive analysis is first done on the variation of overall economic operation. Then impulse response function based on VAR model is applied to study the dynamic influence of economic financialization degree on the relationship evolvement. The empirical results show that economic financialization makes good explanation of the deviating phenomenon among money supply, economic growth and inflation, and the interactive relationship between fictitious economy and real economy is becoming closer and closer. Furthermore, compared to the U.S., China still belongs to the process of transforming from the period of industrialization to economic financialization.
Journal: Applied Economics
Pages: 1032-1045
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210776
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210776
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:1032-1045




Template-Type: ReDIF-Article 1.0
Author-Name: Jaqueline Terra Moura Marins
Author-X-Name-First: Jaqueline Terra Moura
Author-X-Name-Last: Marins
Author-Name: Gustavo Silva Araujo
Author-X-Name-First: Gustavo Silva
Author-X-Name-Last: Araujo
Author-Name: José Valentim Machado Vicente
Author-X-Name-First: José Valentim Machado
Author-X-Name-Last: Vicente
Title: Do central bank foreign exchange interventions affect market expectations?
Abstract: 
 The aim of this article is to study the impact of the Brazilian central bank swap interventions on the FX market from 2006 to 2013. In this period, these nontraditional interventions were the main FX instrument of the Brazilian Government. Since the central bank operates through a sequence of daily interventions in most of the period, we employ the event study method, which is appropriate to investigate cumulative impact of intervention episodes. We analyse the effects on the risk neutral distribution of BRL-USD exchange rate, which incorporates economic valuation besides the likelihoods. We investigate both changes in level and in the dynamics of the moments. Our tests indicate that interventions have little effects on the exchange rate distribution. We only find evidences of some impact on the dynamics of the mean, volatility and skewness over long horizons when the central bank takes short positions on the exchange rate.
Journal: Applied Economics
Pages: 3017-3031
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1248283
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248283
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3017-3031




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: James W. Saunoris
Author-X-Name-First: James W.
Author-X-Name-Last: Saunoris
Title: The nexus of white collar crimes: shadow economy, corruption and uninsured motorists
Abstract: 
 This article empirically examines the nexus of three white collar crimes: shadow economy, corruption and uninsured motorists. Whereas the shadow economy–corruption linkage has been studied, the linkages with uninsured motorists have not been formally studied. Results, based on US data and accounting for possible bidirectional causalities, show complementarity between shadow economy and corruption and between uninsured motorists and the shadow economy. The magnitude of the impact of uninsured motorists on the shadow economy is greater than that of corruption. In other findings, shadow economy was lower in most prosperous states and in states that did not impose a sales tax.
Journal: Applied Economics
Pages: 3032-3044
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1251570
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251570
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3032-3044




Template-Type: ReDIF-Article 1.0
Author-Name: Nolan Kopkin
Author-X-Name-First: Nolan
Author-X-Name-Last: Kopkin
Title: Does racial prejudice affect black entrepreneurship?: evidence exploiting spatial differences in prejudicial attitudes
Abstract: 
 This article explores the relationship between racial prejudice towards blacks and the black-white self-employment rate gap and provides the first direct empirical evidence that racial prejudice negatively impacts black self-employment, particularly in high start-up cost industries. To perform this analysis, I construct a measure of prejudicial attitudes using responses from the General Social Survey and estimate the relationship between self-employment and this index using the American Community Survey. I find that an amount of prejudice equal to the difference in least and most prejudiced census divisions increases the black-white self-employment rate gap in high start-up cost industries by 10.4–16.8%, depending upon whether parental self-employment is controlled for, and represents the entire impact of racial prejudice on the black-white self-employment rate gap. Additionally, racial prejudice widens the black-white self-employment income gap by between 6.4% and 8.2% in my full specification, dependent upon how income is measured. Evidence indicates that racial prejudice is causing blacks difficulty in financing their businesses. The results presented are robust to various modelling and data assumptions.
Journal: Applied Economics
Pages: 3045-3066
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254336
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254336
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3045-3066




Template-Type: ReDIF-Article 1.0
Author-Name: Kulabutr Komenkul
Author-X-Name-First: Kulabutr
Author-X-Name-Last: Komenkul
Author-Name: Mohamed Sherif
Author-X-Name-First: Mohamed
Author-X-Name-Last: Sherif
Author-Name: Bing Xu
Author-X-Name-First: Bing
Author-X-Name-Last: Xu
Title: IPOs’ signalling effects for speculative stock detection: evidence from the Stock Exchange of Thailand
Abstract: 
 Using a unique data set from the Thai stock market about the so-called, ‘Turnover List (TOL)’ of speculative stocks spanning the period 2004–2012, we investigate and provide new evidence on the relationship between IPOs’ pricing effects and subsequent classification as speculative investments. To be more specific, we examine the signalling effects for the detection of speculative stocks in relation to the degree of their prior IPOs underpricing. We also employ the market-feedback hypothesis to investigate this signalling process. Our results reveal a significant positive relationship between the magnitudes of the IPO underpricing and the probability of an IPO firm being classified officially as speculative on the TOL. Furthermore, we find that a 6-month abnormal return after going public increases the probability of speculative dealing in the IPOs. Next, we consider all listed firms in the Thai stock market and highlight the role of both abnormal return and trading volume in the transmission of probability for appearing on the TOL. In addition, we find that IPOs and non-dividend paying companies further increase the risk of being on the TOL.
Journal: Applied Economics
Pages: 3067-3085
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254338
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3067-3085




Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Maennig
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Maennig
Author-Name: Christopher Vierhaus
Author-X-Name-First: Christopher
Author-X-Name-Last: Vierhaus
Title: Winning the Olympic host city election: key success factors
Abstract: 
 This article examines 147 variables’ potential to discriminate successful from unsuccessful Olympic bids. Our stepwise, rank-ordered logistic regression model includes 10 determinants supporting the contention that economic, political and sports/Olympic factors are important for winning the host city election. IOC members favour cities if more than 2/3 of the population support the bid, but disfavour bidding cities of fewer than 2.5 million inhabitants and bids lacking a sufficient number of existing stadiums. Hosts are characterized by larger markets and higher medium-term growth economies. Olympic bids that follow a political liberalization are rewarded with additional votes.
Journal: Applied Economics
Pages: 3086-3099
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254339
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254339
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3086-3099




Template-Type: ReDIF-Article 1.0
Author-Name: Prabal K. De
Author-X-Name-First: Prabal K.
Author-X-Name-Last: De
Author-Name: Priya Nagaraj
Author-X-Name-First: Priya
Author-X-Name-Last: Nagaraj
Title: Effects of foreign equity participation on recipient firm exports
Abstract: 
 We offer new evidence on the role of foreign investment in domestic firms’ export decisions, both at intensive and extensive margins, using balance sheet data from a panel of manufacturing firms in India. In contrast to the existing literature, we analyse the effect of foreign investment at different levels, where the levels correspond to percentages of foreign equity. We use a selection procedure to control for the potential self-selection of firms into export participation. Though we do find that foreign investment increases a domestic firm’s likelihood to export, firms with majority foreign equity are found to serve domestic market more, once the self-selection is accounted for.
Journal: Applied Economics
Pages: 3100-3113
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254340
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254340
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3100-3113




Template-Type: ReDIF-Article 1.0
Author-Name: Anh Tuan Bui
Author-X-Name-First: Anh Tuan
Author-X-Name-Last: Bui
Author-Name: Cuong Viet Nguyen
Author-X-Name-First: Cuong Viet
Author-X-Name-Last: Nguyen
Author-Name: Thu Phuong Pham
Author-X-Name-First: Thu Phuong
Author-X-Name-Last: Pham
Title: Poverty among ethnic minorities: the transition process, inequality and economic growth
Abstract: 
 This article investigates the process of reducing poverty in ethnic minority households. Using two recent Vietnam household surveys, we find that ethnic minority households are more likely to be persistently poor and less likely to be persistently non-poor than ethnic majority households. The within-group component generated by the variation in income within each ethnicity group explains more than 90% of the change in total inequality. Income redistribution plays an important role in decreasing the poverty gap and decreasing poverty severity. Different ethnic groups have different poverty patterns, which should be noted when designing policies to alleviate poverty and inequality.
Journal: Applied Economics
Pages: 3114-3128
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254341
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254341
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3114-3128




Template-Type: ReDIF-Article 1.0
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Author-Name: Xiyuan Ma
Author-X-Name-First: Xiyuan
Author-X-Name-Last: Ma
Title: Oil shocks and stock volatility: new evidence via a Bayesian, graph-based VAR approach
Abstract: 
 This article examines the temporal dependence between three oil shocks and realized volatility in the stock markets of G20 countries between 1994 and 2019. By applying a novel, graphical, Bayesian VAR (BGVAR) model, we calculate unidirectional linkages of oil and stock volatility with a full and segmented sample. The results suggest an overall causality from stock volatility to oil shocks. For certain short, specific periods, the causal direction reverses. Depending on the country and the source of an oil shock, the magnitude and type of the effect can vary considerably. Specific oil-market shocks occur most often in our full sample. In a time-varying structure, oil supply shocks’ impact on stock volatility is more prominent, and net oil-importing countries’ responses to these shocks are greater than for oil-exporting countries. In addition, we find that relationship dynamics can capture market information, such as global economic growth during the 2008–2009 financial crisis.
Journal: Applied Economics
Pages: 1163-1180
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659497
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659497
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1163-1180




Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Adrian Licht
Author-X-Name-First: Adrian
Author-X-Name-Last: Licht
Title: Dynamic conditional score models: a review of their applications
Abstract: 
 In this paper, applications of dynamic conditional score (DCS) models are reviewed and those models are discussed in relation to classical time series models from the literature. DCS models are robust to outliers, which improves their statistical performance compared to classical models. Three applications are presented in order to compare the statistical performances of DCS and classical models in three very different contexts: (i) The QAR (quasi-autoregressive) plus Beta-t-EGARCH (exponential autoregressive conditional heteroscedasticity) model is presented, which is a score-driven expected return plus volatility model. This model is used for daily returns on the DAX (Deutscher Aktienindex) equity index for the period of January 1988 to December 2017. (ii) The score-driven local level and seasonality plus Beta-t-EGARCH model is presented, which is used for daily AFN/USD (Afghan Afghani/United States Dollar) currency exchange rates for the period of March 2007 to July 2017. (iii) The Seasonal-t-QVAR (quasi-vector autoregressive) model is presented, which is a score-driven multivariate dynamic model of location. For this model, monthly US inflation rate and US unemployment rate are used for the period of January 1948 to December 2017. For all applications, the statistical performance of each DCS model is superior to that of a corresponding classical alternative.
Journal: Applied Economics
Pages: 1181-1199
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659498
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659498
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1181-1199




Template-Type: ReDIF-Article 1.0
Author-Name: Bo Wang
Author-X-Name-First: Bo
Author-X-Name-Last: Wang
Author-Name: Haoran Li
Author-X-Name-First: Haoran
Author-X-Name-Last: Li
Title: The time-varying characteristics of the Chinese financial cycle and impact from the United States
Abstract: 
 Although there have been many empirical studies about the financial cycle since the financial crisis of 2008, few have analysed the structural changes in the Chinese financial cycle over time. The Chinese financial development process is short, and it is difficult to obtain accurate results on the measurement of the financial cycle. Based on wavelet analysis, this paper analyzes the time-varying characteristics of the Chinese financial cycle and the relationship between the financial and business cycles. In addition, we measure the impact from the United States. This paper draws three conclusions. Firstly, in terms of the characteristics of cycles, the existence of Chinese business cycle and financial cycle is proved, while the credit cycle, leverage cycle, stock market cycle and property cycle are quite different. Specifically, China has a 5.8-year credit cycle, an 8-year stock market cycle, 3.4-year and 12-year business cycles and a 15-year leverage cycle. Secondly, the financial cycles can serve as leading indicators of the business cycle, though the relationships between them are change overtime. Finally, the United States has a significant impact on the Chinese financial cycle with a ‘decoupling-recoupling’ effect, which is mainly reflected in the leverage cycle and the stock market cycle.
Journal: Applied Economics
Pages: 1200-1218
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659500
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659500
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1200-1218




Template-Type: ReDIF-Article 1.0
Author-Name: Liu Haiyue
Author-X-Name-First: Liu
Author-X-Name-Last: Haiyue
Author-Name: Aqsa Manzoor
Author-X-Name-First: Aqsa
Author-X-Name-Last: Manzoor
Title: The impact of OFDI on the performance of Chinese firms along the ‘Belt and Road’
Abstract: 
 Using feasible generalized least squares (FGLS) and ordinary least square (OLS) estimations on a dataset of 1208 outward Foreign Direct Investment (OFDI) events by Chinese-listed firms from 2004 to 2015, this paper investigated the impact of OFDI on the performance of Chinese firms, from which it was found that Chinese firms that had invested in Belt and Road Initiative (BRI) countries were more productive than those that had invested in non-BRI countries. However, OFDI by both state-owned enterprises (SOE) and non-SOE were on average found to be negatively related to productivity and profitability, with state-owned enterprises (SOEs) having worse performance in terms of total factor productivity (TFP) than non-SOEs. A further subsample analysis found that Chinese firms that were investing in developing economies were performing better than those that had invested in developed ones; firms investing in sub-regions like Middle East and South Africa, East Asia and the Pacific, Latin America and the Caribbean experienced a positive post-OFDI TFP but investment in other regions had either insignificant or negatively significant coefficients, indicating that firms in general had poor post-OFDI performances. The findings in this paper are informative for developing going-global strategies for both firms and government authorities.
Journal: Applied Economics
Pages: 1219-1239
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659501
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659501
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1219-1239




Template-Type: ReDIF-Article 1.0
Author-Name: Manthos D. Delis
Author-X-Name-First: Manthos D.
Author-X-Name-Last: Delis
Author-Name: Iftekhar Hasan
Author-X-Name-First: Iftekhar
Author-X-Name-Last: Hasan
Author-Name: Nikolaos Mylonidis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Mylonidis
Title: Foreign bank ownership and income inequality: empirical evidence
Abstract: 
 Using country-level panel data over 1995–2013 on within-country income inequality and foreign bank presence, this paper establishes a positive relation between the two, running from higher foreign bank presence to income inequality. Given that foreign bank participation increased by 62% over the period 1995 to 2013, our baseline results imply a 5.8% increase in the Gini coefficient on average over this period, ceteris paribus. These results are robust to the inclusion of country and year fixed effects and to the use of restrictions on foreign bank entry in the host countries as an instrumental variable. We show that this positive effect is channelled through the lack of greenfield entry and the associated lower levels of competition.
Journal: Applied Economics
Pages: 1240-1258
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659931
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659931
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1240-1258




Template-Type: ReDIF-Article 1.0
Author-Name: Goblan Al Gahtani
Author-X-Name-First: Goblan
Author-X-Name-Last: Al Gahtani
Author-Name: Carlo Andrea Bollino
Author-X-Name-First: Carlo Andrea
Author-X-Name-Last: Bollino
Author-Name: Simona Bigerna
Author-X-Name-First: Simona
Author-X-Name-Last: Bigerna
Author-Name: Axel Pierru
Author-X-Name-First: Axel
Author-X-Name-Last: Pierru
Title: Estimating the household consumption function in Saudi Arabia: an error correction approach
Abstract: 
 We estimate a micro-founded life-cycle consumption model for Saudi Arabia over the period 1970–2017 using error correction model procedures. Dynamic adjustments are significant, and both income and wealth are found to have significant effects, with a long-run marginal propensity to consume out of the income of 0.95 and out of the wealth of 0.06. The sensitivity of consumption to income and wealth, as well as the estimated short-term effects of price and real interest rate, are consistent with the rapidly growing Saudi economy. By capturing the key determinants of the life-cycle model, our approach is useful for the design of macroeconomic policy. We estimate the impact of the recent VAT reform.
Journal: Applied Economics
Pages: 1259-1271
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659933
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659933
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1259-1271




Template-Type: ReDIF-Article 1.0
Author-Name: M. Billio
Author-X-Name-First: M.
Author-X-Name-Last: Billio
Author-Name: M. Donadelli
Author-X-Name-First: M.
Author-X-Name-Last: Donadelli
Author-Name: G. Livieri
Author-X-Name-First: G.
Author-X-Name-Last: Livieri
Author-Name: A. Paradiso
Author-X-Name-First: A.
Author-X-Name-Last: Paradiso
Title: On the role of domestic and international financial cyclical factors in driving economic growth
Abstract: 
 We investigate the effects of (domestic and international) financial cyclical factors on the US business cycle over the period 1890–2013 using an augmented stochastic version of the neoclassical growth model. In our setting, financial factors enter as determinants of the total factor productivity cyclical pattern. By means of static and dynamic estimations we find that (i) the inclusion of financial cyclical factors improves the model’s performance; (ii) the sensitivity of economic growth to financial factors is time-varying; (iii) domestic financial factors have a key role in explaining short-run output fluctuations only in the first half of the 20th century; (iv) US business cycle fluctuations have been mainly driven by global financial factors (i.e., financial integration) over the last three decades.JEL CODES: O40, E32, C32
Journal: Applied Economics
Pages: 1272-1297
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659934
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659934
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1272-1297




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Gechert
Author-X-Name-First: Sebastian
Author-X-Name-Last: Gechert
Author-Name: Rafael Mentges
Author-X-Name-First: Rafael
Author-X-Name-Last: Mentges
Title: Financial cycles and fiscal multipliers
Abstract: 
 We show that fiscal multiplier estimations may be biased by movements in asset and credit markets, as they facilitate spurious correlations of changes in cyclically adjusted revenues and spending with output growth via an identification bias and an omitted variable bias, thus overstating episodes of expansionary consolidations and downplaying contractionary consolidations. When controlling for asset and credit market movements in otherwise standard approaches to identification, we find multipliers to increase on average by 0.3–1 units. Fiscal consolidations are thus more likely to be contractionary and more harmful to growth than expected by some strands of the existing literature.
Journal: Applied Economics
Pages: 2635-2651
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403563
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403563
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2635-2651




Template-Type: ReDIF-Article 1.0
Author-Name: Magnus Carlsson
Author-X-Name-First: Magnus
Author-X-Name-Last: Carlsson
Author-Name: Luca Fumarco
Author-X-Name-First: Luca
Author-X-Name-Last: Fumarco
Author-Name: Dan-Olof Rooth
Author-X-Name-First: Dan-Olof
Author-X-Name-Last: Rooth
Title: Ethnic discrimination in hiring, labour market tightness and the business cycle - evidence from field experiments
Abstract: 
 Several studies using observational data suggest that ethnic discrimination increases in downturns of the economy. We investigate whether ethnic discrimination depends on labour market tightness using data from correspondence studies. We utilize three correspondence studies of the Swedish labour market and two different measures of labour market tightness. These two measures produce qualitatively similar results, and, opposite to the observational studies, suggest that ethnic discrimination in hiring decreases in downturns of the economy.
Journal: Applied Economics
Pages: 2652-2663
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406653
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406653
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2652-2663




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Long
Author-X-Name-First: Wei
Author-X-Name-Last: Long
Title: Does longer incarceration deter or incapacitate crime? Evidence from Truth-in-Sentencing reform
Abstract: 
 This article evaluates how Truth-in-Sentencing (TIS) laws impact both violent and property crimes through mandating violent offenders to serve a substantial proportion of sentenced terms before being eligible to release to community supervision. Focusing on states with effective TIS laws, I utilize the difference-in-differences design to investigate the treatment effect of TIS on crime. I observe statistically significant decline in both violent and property crimes in TIS states. A series of placebo tests confirm the robustness of the estimates and inferences. The dynamic impact of TIS is heterogeneous among the seven categories of violent and property crimes in TIS states: murder and robbery rates decline almost immediately after TIS, while property crime takes longer time to exhibit significant decline.
Journal: Applied Economics
Pages: 2664-2676
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406654
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406654
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2664-2676




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Román Ferrer
Author-X-Name-First: Román
Author-X-Name-Last: Ferrer
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Ilham Haouas
Author-X-Name-First: Ilham
Author-X-Name-Last: Haouas
Title: Is the tourism–economic growth nexus time-varying? Bootstrap rolling-window causality analysis for the top 10 tourist destinations
Abstract: 
 This article explores the time-varying causal nexus between tourism development and economic growth for the top 10 tourist destinations in the world, namely China, France, Germany, Italy, Mexico, the Russian Federation, Spain, Turkey, the UK and the United States of America, over the period 1990–2015. To that end, a bootstrap rolling window Granger causality approach based on the modified Granger causality test is used. A new index for tourism activity which combines via principal component analysis the commonly used tourism indicators is also employed. The results of the bootstrap rolling window causality tests reveal that the causal relations between tourism and economic growth vary substantially over time and across countries in terms of both magnitude and direction. It is shown that the causal linkages tend to be more pronounced for a large group of countries following the global financial crisis of 2008. Additionally, Germany, France and China clearly stand out as the countries with the weakest causal nexus, while the UK, Italy and Mexico emerge as the countries that have the strongest causal links. These results have particularly important implications for policymakers.
Journal: Applied Economics
Pages: 2677-2697
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406655
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406655
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2677-2697




Template-Type: ReDIF-Article 1.0
Author-Name: Laura M. Crispin
Author-X-Name-First: Laura M.
Author-X-Name-Last: Crispin
Author-Name: Dimitrios Nikolaou
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Nikolaou
Title: Work and play take school time away? The impact of extracurricular and work time on educational time for live-at-home college students
Abstract: 
 We use data from the 2003–2014 American Time Use Survey to estimate the effects of time allocated to work and extracurriculars on time spent in educational activities (class and homework) for live-at-home college students, who make up a large share of the college population. Our instrumental variables strategy indicates that students are more likely to substitute time away from homework than from class, and that the effects are generally stronger for work than for extracurriculars. These findings, which remain even after correcting for selection on unobservables through non-parametric matching methods, show that work leads to decreases in the amount of time spent in class by 47 min and on homework by 56 min, whereas extracurriculars lead to a loss of 22 min of homework time. Thus, while after-school activities (extracurriculars and work) may be beneficial with respect to human capital development, they may also have a counteracting, unintended effect due to students’ substitution away from educational pursuits.
Journal: Applied Economics
Pages: 2698-2718
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406656
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406656
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2698-2718




Template-Type: ReDIF-Article 1.0
Author-Name: Markum Reed
Author-X-Name-First: Markum
Author-X-Name-Last: Reed
Author-Name: Alison Watts
Author-X-Name-First: Alison
Author-X-Name-Last: Watts
Title: Product quality and competition: evidence from the broadband industry
Abstract: 
 Access to high-quality broadband internet is important in many different respects such as in communication, education, commerce and information acquisition. We investigate the relationship between the number of broadband providers in an area and the quality of broadband service provided where download speed is used as a proxy for quality. We find that increased competition in an area positively affects the access to fast download speeds. This finding is robust to three different top download speeds tested. Additionally, a theoretical model is provided which shows that competition can decrease the profits associated with offering slow speeds; this gives an incentive for providers to offer higher speeds as a way to increase profits.
Journal: Applied Economics
Pages: 2719-2732
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406657
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406657
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2719-2732




Template-Type: ReDIF-Article 1.0
Author-Name: Lara Gardner
Author-X-Name-First: Lara
Author-X-Name-Last: Gardner
Author-Name: Sharmila Vishwasrao
Author-X-Name-First: Sharmila
Author-X-Name-Last: Vishwasrao
Title: Physicians’ use of medical technology: an analysis of the introduction and subsequent failure of drug-eluting stents
Abstract: 
 Using data on cardiac patients in Florida hospitals from 2003 to 2007, we analyse the adoption and deadoption of a major new medical technology, drug-eluting stents (DESs). The Food and Drug Administration approved DESs in April 2003 and physicians rapidly adopted the new technology. In March 2006, a presentation was made at the American Cardiology Conference which showed that patients receiving DES in real-world settings suffered higher rates of mortality and myocardial infarction than those receiving stents without drugs. We examine the utilization of DES from April 2003 to the end of 2007. Using a hospital fixed-effects model, we find that board-certified and top-trained physicians were initially quicker to adopt DES. Over time, this effect dissipated and top-trained physicians were less likely to use DES by the time new clinical trials indicated they could be problematic. After the news, board-certified and top-ranked physicians were less likely to change their behaviour. Physicians’ own experience also contributes to the use of technology and the effects are stronger for non-board-certified physicians. We conclude that even within hospitals, physician training and experience play an important role in explaining differences in rates of technology use.
Journal: Applied Economics
Pages: 2733-2745
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406658
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406658
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2733-2745




Template-Type: ReDIF-Article 1.0
Author-Name: Stelios Bekiros
Author-X-Name-First: Stelios
Author-X-Name-Last: Bekiros
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Rania Jammazi
Author-X-Name-First: Rania
Author-X-Name-Last: Jammazi
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Title: Sovereign bond market dependencies and crisis transmission around the eurozone debt crisis: a dynamic copula approach
Abstract: 
 We examine the dependency between the European government bond markets around the recent sovereign debt crisis. A dynamic copula approach is used to model the time-varying dependence structure of those government bond markets, evaluate the nature and strength of their dependencies over time, and gauge the transmission of the crisis shocks. Our results can be summarized as follows: i) the eurozone sovereign bond markets under consideration have a significant and positive dependence with the Greek and the EMU benchmark sovereign bond markets; ii) the dynamic-BB7 copula function best describes the dependence structure between these sovereign bond markets and provides evidence of asymmetric tail dependence; iii) the conditional probability of crisis transmission from Greece to other eurozone countries is higher than the other way around; and iv) Greece is the most vulnerable country when the eurozone entered into the sovereign debt crisis.
Journal: Applied Economics
Pages: 5031-5049
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1470313
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1470313
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5031-5049




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Santín
Author-X-Name-First: Daniel
Author-X-Name-Last: Santín
Author-Name: Gabriela Sicilia
Author-X-Name-First: Gabriela
Author-X-Name-Last: Sicilia
Title: Does preschool education attendance matter? Evidence from a natural experiment in Spain
Abstract: 
 The non-compulsory and non-free of charge character of preschool education level before 3 years old in Spain raises some doubts about the exogenous nature of this variable. This article provides new evidence about the impact of preschool years on educational outcomes by exploiting a peculiar Spanish database that supplies information on two classrooms at fourth grade in primary schools where students were randomly allocated into each group. Using an identification strategy that reproduces a natural experiment, we find that belonging to the group with more average years of preschool education significantly and positively impacts on fourth-grade students’ average outcomes. Particularly, an increase of one standard deviation in the difference in years of preschool attendance results in an increase of 0.16 (0.13) standard deviations in the group achievement for mathematics (reading). In view of the importance of preschool education and considering that preschool attendance before 3 years old is related with socio-economic variables, we conclude that extending free preschool education to the 2-year-old age group in Spain should be considered especially for students in families with less favourable backgrounds.
Journal: Applied Economics
Pages: 5050-5063
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1470314
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1470314
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5050-5063




Template-Type: ReDIF-Article 1.0
Author-Name: Petr Parshakov
Author-X-Name-First: Petr
Author-X-Name-Last: Parshakov
Author-Name: Dennis Coates
Author-X-Name-First: Dennis
Author-X-Name-Last: Coates
Author-Name: Marina Zavertiaeva
Author-X-Name-First: Marina
Author-X-Name-Last: Zavertiaeva
Title: Is diversity good or bad? Evidence from eSports teams analysis
Abstract: 
 We use eSports data to construct an empirical model to measure the effect of diversity on team performance. Different kinds of diversities are considered, diversity of culture, diversity of language and diversity of skill. Our main results are that cultural diversity is beneficial for team performance: the absence of diversity reduces performance by 30%. However, language and experience diversity negatively affect results. Taking the difference in the results into account, we conclude that firms should not thoughtlessly maximize team diversity: different kinds of diversity have different integration and communication costs.
Journal: Applied Economics
Pages: 5064-5075
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1470315
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1470315
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5064-5075




Template-Type: ReDIF-Article 1.0
Author-Name: Farid Khan
Author-X-Name-First: Farid
Author-X-Name-Last: Khan
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Kai Sun
Author-X-Name-First: Kai
Author-X-Name-Last: Sun
Title: Does R&amp;D spur productivity growth in Australia’s broadacre agriculture? A semi-parametric smooth coefficient approach
Abstract: 
 This article analyses the role of research and development (R&amp;D) in Australia’s broadacre farming by using the semi-parametric smooth coefficient model. While the conventional production function approach only captures the direct effects of R&amp;D, this methodology captures both the direct impact of a change in R&amp;D on output and the indirect impact through changes in efficiency of use of factor inputs in the production process. Moreover, technical inefficiency is introduced in the model allowing it as a function of R&amp;D. Using a unique state-level dataset covering the period 1995–2007, this empirical study finds that once both the direct and indirect effects are taken into consideration, R&amp;D investments significantly increase outputs. The results also show that there are substantial variations in the effects of R&amp;D on output across the state-level average farm through technology parameters as well as through technical inefficiency. Such variations need to be taken into account when designing policies for investing public R&amp;D in agriculture.
Journal: Applied Economics
Pages: 5076-5093
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1470316
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1470316
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5076-5093




Template-Type: ReDIF-Article 1.0
Author-Name: Osama Ahmed
Author-X-Name-First: Osama
Author-X-Name-Last: Ahmed
Title: Vertical price transmission in the Egyptian tomato sector after the Arab Spring
Abstract: 
 This study assesses price transmission along the Egyptian tomato food marketing chain in the period that followed the Arab Spring, which accentuated economic precariousness in Egypt. Static and time-varying copula methods are used for this purpose. Results suggest a positive link between producer, wholesaler and retailer tomato prices. Such positive dependence is characterized by asymmetries during extreme market events that lead price increases to be transferred more completely along the supply chain than price declines.
Journal: Applied Economics
Pages: 5094-5109
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1472739
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1472739
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5094-5109




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Bazen
Author-X-Name-First: Stephen
Author-X-Name-Last: Bazen
Author-Name: Jean-Marie Cardebat
Author-X-Name-First: Jean-Marie
Author-X-Name-Last: Cardebat
Title: Forecasting Bordeaux wine prices using state-space methods
Abstract: 
 Generic Bordeaux red wine (basic claret) can be regarded as being similar to an agricultural commodity. Production volumes are substantial, they are traded at high frequency and the quality of the product is relatively homogeneous. Unlike other commodities and the top-end wines (which represent only 3% of the traded volume), there is no futures market for generic Bordeaux wine. Reliable forecasts of prices can to large extent replace this information deficiency and improve the functioning of the market. We use state-space methods with monthly data to obtain a univariate forecasting model for the average price. The estimates highlight the stochastic trend and the seasonality present in the evolution of the price over the period 1999 to 2016. The model predicts the path of wine prices out of sample reasonably well, suggesting that this approach is useful for making reasonably accurate forecasts of future price movements.
Journal: Applied Economics
Pages: 5110-5121
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1472740
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1472740
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5110-5121




Template-Type: ReDIF-Article 1.0
Author-Name: Shuddhasattwa Rafiq
Author-X-Name-First: Shuddhasattwa
Author-X-Name-Last: Rafiq
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Pasquale M Sgro
Author-X-Name-First: Pasquale M
Author-X-Name-Last: Sgro
Title: Energy, unemployment and trade
Abstract: 
 This article investigates the dynamic relationships among sectoral economic activities, macro expenditure patterns, renewable and non-renewable energy consumption and unemployment in 41 countries from 1980 to 2014. The state of the art econometric techniques, both linear and non-linear panel and time series estimation techniques are used. The results show that industrialization, services sector, government expenditure and trade openness play a positive role in reducing unemployment, while agriculture and renewable energy consumption increase unemployment. This might be, in part, due to recent technological advancements and large capital intensive investments in agriculture and renewable energy sectors. Therefore, dedicated social and labour market policies need to be adopted to complement greening economic policies.
Journal: Applied Economics
Pages: 5122-5134
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1472741
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1472741
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5122-5134




Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Colombo
Author-X-Name-First: Emilio
Author-X-Name-Last: Colombo
Author-Name: Valentina Rotondi
Author-X-Name-First: Valentina
Author-X-Name-Last: Rotondi
Author-Name: Luca Stanca
Author-X-Name-First: Luca
Author-X-Name-Last: Stanca
Title: Macroeconomic conditions and well-being: do social interactions matter?
Abstract: 
 We investigate the role played by social interactions in the transmission of the effects of macroeconomic conditions on well-being. Using survey data for a representative sample of Italian individuals, we find that social interactions play a dual role. On the one hand, the well-being of people who spend more time with their friends or go out more often is less sensitive to macroeconomic fluctuations. On the other hand, social interactions are negatively affected by worsening macroeconomic conditions, thus playing a relevant role in the transmission of macroeconomic shocks to subjective well-being. More specifically, the negative impact of downturns on the frequency of going out and active participation in associations significantly contributes to the adverse effects of recessions on satisfaction with life and with individual life domains.
Journal: Applied Economics
Pages: 3029-3038
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414935
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414935
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3029-3038




Template-Type: ReDIF-Article 1.0
Author-Name: Bo Chen
Author-X-Name-First: Bo
Author-X-Name-Last: Chen
Author-Name: Sayed Saghaian
Author-X-Name-First: Sayed
Author-X-Name-Last: Saghaian
Author-Name: Yuqing Zheng
Author-X-Name-First: Yuqing
Author-X-Name-Last: Zheng
Title: Organic labelling, private label, and U.S. household demand for fluid milk
Abstract: 
 The U.S. fluid milk market has been experiencing two trends in the recent decade: the fast growth of private label milk and organic milk. Using the data from Nielsen Homescan Panel, we estimate a censored demand system to study the demand relations among types of milk differentiated by brand types and organic status. We find that sociodemographic factors still play important roles in household choice of milk types, and fluid milk, as a whole, is an inferior good. Moreover, as income increases, households are more likely to shift from buying conventional milk to organic milk and from private label conventional milk to branded conventional milk, as indicated by the asymmetric cross price elasticities. Corresponding implications for milk producers and marketers are discussed.
Journal: Applied Economics
Pages: 3039-3050
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414936
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414936
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3039-3050




Template-Type: ReDIF-Article 1.0
Author-Name: Giorgia Giovannetti
Author-X-Name-First: Giorgia
Author-X-Name-Last: Giovannetti
Author-Name: Marco Sanfilippo
Author-X-Name-First: Marco
Author-X-Name-Last: Sanfilippo
Author-Name: Margherita Velucchi
Author-X-Name-First: Margherita
Author-X-Name-Last: Velucchi
Title: Diverse twins: analysing China’s impact on Italian and German exports using a multilevel quantile regressions approach
Abstract: 
 Germany and Italy are the largest manufacturing producers in Europe and export over 70% of their products to OECD countries. While they share many characteristics, they are also diverse in term of specialization and destination markets. Italy has a productive structure largely based on labour intensive sectors, while Germany is mainly specialized in high-tech goods. We study whether these characteristics make the two countries vulnerable in different ways to the competitive pressure by emerging economies, especially China, which experienced the strongest increase in export market share during the last decades. We discuss the impact of China on the export performance of Italy and Germany on OECD markets. Using data for the period 1995–2009, we implement a novel model to account for two important data characteristics: their hierarchical hidden structure (captured by a multilevel model) and the heterogeneity of the export shares (captured by a quantile approach). Results show that Chinese competition on Italy’s and Germany’s market shares differ by sectors, but, on average, Italy is not more vulnerable than Germany. These results are relevant for policy implications and for an ex-post analysis of the ‘best response’ to the Chinese competition.
Journal: Applied Economics
Pages: 3051-3065
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414937
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414937
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3051-3065




Template-Type: ReDIF-Article 1.0
Author-Name: Christer Thrane
Author-X-Name-First: Christer
Author-X-Name-Last: Thrane
Title: Do expert reviews affect the decision to see motion pictures in movie theatres? An experimental approach
Abstract: 
 The positive correlation between favourable expert reviews and the economic success of motion pictures suggests that potential moviegoers are encouraged to see a particular movie by the good reviews it has received. Yet experimental evidence on actual consumers is mixed as to whether or not this is the case. Against this background, we examine the relationship between movie critics’ reviews and the decision to see motion pictures in movie theatres. Based on an experimental approach using four treatments – no review, a poor/OK minus review, an OK/OK plus review and a very good review – movie-seeing decisions for seven movie genres are examined. What we find is at odds with experimental studies, yielding as they do mixed results for the association between favourable reviews and movie preference. Seemingly unrelated regressions consistently show that the better the expert review of a movie, the more likely it is that people will see it. Yet the magnitude of the effects of expert reviews appears both somewhat genre specific and gender specific.
Journal: Applied Economics
Pages: 3066-3075
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414938
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414938
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3066-3075




Template-Type: ReDIF-Article 1.0
Author-Name: Dragan Miljkovic
Author-X-Name-First: Dragan
Author-X-Name-Last: Miljkovic
Author-Name: Silvia H. G. de Miranda
Author-X-Name-First: Silvia H. G.
Author-X-Name-Last: de Miranda
Author-Name: Ana L. Kassouf
Author-X-Name-First: Ana L.
Author-X-Name-Last: Kassouf
Author-Name: Fabíola C. R. Oliveira
Author-X-Name-First: Fabíola C. R.
Author-X-Name-Last: Oliveira
Title: Determinants of obesity in Brazil: the effects of trade liberalization and socio-economic variables
Abstract: 
 This article aims to evaluate a possible relation between increased Brazilian trade openness and increasing observed rates of overweight and obesity during the last 25 years. We develop an economic model where formal trade barriers are eliminated, and resulting sociocultural outcomes such as the adoption of westernized lifestyle in traditional non-western countries prevails, which could imply a health externality. In order to empirically analyse the influence of trade flows on overweight and obesity in Brazil, a balanced fixed-effects panel model has been estimated. Data for the 26 Brazilian states plus the Federal District are run for 1988/1989, 2002 and 2008. We found that an increase in trade openness leads to an increase in overweight and obesity ratios in Brazil. Hence results seem to point that there is a health externality in Brazil due to trade liberalization. However, more consistent evidence may be necessary to convince politicians and policymakers that any interference will be necessary to correct this externality.
Journal: Applied Economics
Pages: 3076-3088
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414939
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414939
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3076-3088




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Chadi
Author-X-Name-First: Adrian
Author-X-Name-Last: Chadi
Author-Name: Marco de Pinto
Author-X-Name-First: Marco
Author-X-Name-Last: de Pinto
Title: Selecting successful students? Undergraduate grades as an admission criterion
Abstract: 
 In Europe’s reformed education system, universities may be forced by law to consider undergraduate grade point average (UGPA) as the primary admission criterion in the selection of graduate students. In this article, we investigate whether UGPA predicts graduate student performance in order to discuss its usefulness as an admission criterion. In our theoretical framework, we show that undergraduate students may choose slower study progress in favour of receiving higher grades and conclude that UGPA is a relatively good (weak) predictor for graduate grade point average (study progress). Having data from a cohort of students whose selection was in clear conflict with the legal requirement, we empirically confirm our theoretical predictions by exploiting a unique opportunity for assessing educational policies. Discussion of our findings leads to some important conclusions concerning the Bologna reforms and the lawmakers’ idea of giving some independence to universities, but not too much of it.
Journal: Applied Economics
Pages: 3089-3105
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418072
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418072
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3089-3105




Template-Type: ReDIF-Article 1.0
Author-Name: W. A. Razzak
Author-X-Name-First: W. A.
Author-X-Name-Last: Razzak
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: Monetary policy, corporate profit and house prices
Abstract: 
 By using portfolio theory, we explain the highly observed correlation between the seemingly unrelated corporate profit and house prices in the United States. We test the predictions of the underlying model using a vector autoregression representation and find the data to be supportive of the theory. Monetary impulses explain high correlation as both corporate profit and house prices exhibit similar dynamics in response to a monetary impulse. Robustness checks are presented by using the federal funds rate instead of the monetary base as a measure of the stance of monetary policy and by using other model variations. In all cases, the results are robust.
Journal: Applied Economics
Pages: 3106-3114
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418073
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418073
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3106-3114




Template-Type: ReDIF-Article 1.0
Author-Name: Pamela Wicker
Author-X-Name-First: Pamela
Author-X-Name-Last: Wicker
Author-Name: John C. Whitehead
Author-X-Name-First: John C.
Author-X-Name-Last: Whitehead
Author-Name: Bruce K. Johnson
Author-X-Name-First: Bruce K.
Author-X-Name-Last: Johnson
Author-Name: Daniel S. Mason
Author-X-Name-First: Daniel S.
Author-X-Name-Last: Mason
Title: The effect of sporting success and management failure on attendance demand in the Bundesliga: a revealed and stated preference travel cost approach
Abstract: 
 This study examines the private consumption benefits of sports attendance using revealed and stated preference data from 28 Football Bundesliga teams across three divisions. Survey respondents were presented with positive (sporting success) and negative (management failure) scenarios and asked for the number of game trips if each scenario occurred. The results of a pooled random effects Poisson model show that travel costs and ticket price have a significant negative effect on the number of home game trips. The weighted consumer surplus per game trip including travel costs and ticket prices is €345. Consumer surplus per game trip was found to change by €41 (first division) and €98 (second and third division) if the positive scenario occurred and by €39 if the negative scenario occurred.
Journal: Applied Economics
Pages: 5287-5295
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305090
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305090
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5287-5295




Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Ze-Lei
Author-X-Name-First: Xiao
Author-X-Name-Last: Ze-Lei
Author-Name: Du Xin-ya
Author-X-Name-First: Du
Author-X-Name-Last: Xin-ya
Author-Name: Fan Fei
Author-X-Name-First: Fan
Author-X-Name-Last: Fei
Title: Convergence in China’s high-tech industry development performance: a spatial panel model
Abstract: 
 At present, there exist both regional-scale and regional performance differences in China’s high-tech industry development. Performance differences will inevitably affect resource allocation in regional high-tech industry and in the upgrading of industrial structure. Thus, this article conducts a systematic study of convergence issues in China’s high-tech industry development performance by adopting the spatial panel econometric method and related approaches.First, to measure the comprehensive performance of China’s high-tech industry development, the study applies the Malmquist index and efficacy coefficient method from the perspective of R&amp;D efficiency and economic efficiency; then, by adopting a spatial autoregressive (SAR) panel data model, it studies the absolute $$\beta $$β
 convergence and convergence mechanism of China’s provincial high-tech industry development performance from 2001 to 2013. The results indicate the existence of distinct absolute $$\beta $$β
 convergence in China’s high-tech industry development performance since the 21st century, which is mainly due to technology diffusion. The convergence rate of central China is notably faster than that of other regions.
Journal: Applied Economics
Pages: 5296-5308
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305091
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305091
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5296-5308




Template-Type: ReDIF-Article 1.0
Author-Name: Colin O’hare
Author-X-Name-First: Colin
Author-X-Name-Last: O’hare
Author-Name: Youwei Li
Author-X-Name-First: Youwei
Author-X-Name-Last: Li
Title: Models of mortality rates – analysing the residuals
Abstract: 
 The area of mortality modelling has received significant attention over the last 25 years owing to the need to quantify and forecast improving mortality rates. This need is driven primarily by the concern of governments, insurance and actuarial professionals and individuals to be able to fund their old age. In particular, to quantify the costs of increasing longevity we need suitable model of mortality rates that capture the dynamics of the data and forecast them with sufficient accuracy to make them useful. In this article, we test several of the leading time series models by considering the fitting quality and in particular, testing the residuals of those models for normality properties. In a wide ranging study considering 30 countries we find that almost exclusively the residuals do not demonstrate normality. Further, in Hurst tests of the residuals we find evidence that structure remains that is not captured by the models.
Journal: Applied Economics
Pages: 5309-5323
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305092
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305092
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5309-5323




Template-Type: ReDIF-Article 1.0
Author-Name: Aylin Ege
Author-X-Name-First: Aylin
Author-X-Name-Last: Ege
Author-Name: A. Yavuz Ege
Author-X-Name-First: A. Yavuz
Author-X-Name-Last: Ege
Title: Is there an innovation effect on current account? A case for European countries
Abstract: 
 The aim of this article is to find out whether there is an innovation effect on the current account, and if there is one then to determine its significance. The study is carried out for the current accounts of European countries. Innovation is tested together with some other factors as control variables in order to estimate and compare its role in the determination process of the current account. The results indicate that innovation has quite a significant influence on the current accounts of European countries, and the form of the relationship between innovation and current account is non-linear. Moreover, the impact of innovation is stronger for countries at higher levels of innovation, but the growth rate of its average marginal effect diminishes through its increasing levels.
Journal: Applied Economics
Pages: 5324-5336
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305093
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305093
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5324-5336




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Title: Finance and income inequality in Kazakhstan: evidence since transition with policy suggestions
Abstract: 
 Kazakhstan gained independence in 1990 and has undergone significant changes in economic, social and trade conditions since then. We analyse the effects of financial development on income inequality in Kazakhstan, incorporating economic growth, foreign investment, education and the role of democracy as the drivers. We establish that income inequality in Kazakhstan is impaired by financial development. In summary, we send three messages for policy purposes. First, strengthening financial sector is necessary to close the gap between ‘haves and have-nots’. Second, attracting FDI beyond the hydrocarbon sector is necessary to alleviate inequality. Finally, adaptation of education system to the new social and economic environment would help in improving income distribution.
Journal: Applied Economics
Pages: 5337-5351
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305095
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305095
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5337-5351




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Krauss
Author-X-Name-First: Christopher
Author-X-Name-Last: Krauss
Author-Name: Johannes Stübinger
Author-X-Name-First: Johannes
Author-X-Name-Last: Stübinger
Title: Non-linear dependence modelling with bivariate copulas: statistical arbitrage pairs trading on the S&amp;P 100
Abstract: 
 We develop a copula-based pairs trading framework and apply it to the S&amp;P 100 index constituents from 1990 to 2014. We propose an integrated approach, relying on copulas for pairs selection and trading. Essentially, we fit t-copulas to all possible combinations of pairs in a formation period. Next, we trade these pairs in-sample to assess the profitability of mispricing signals derived from t-copulas. The top pairs are transferred to an out-of-sample trading period, and traded with individualized exit thresholds. In particular, we differentiate between pairs exhibiting mean-reversion and momentum effects and apply idiosyncratic take-profit and stop-loss rules. For the top 5 mean-reversion pairs, we find out-of-sample returns of 7.98% per year; the top 5 momentum pairs yield 7.22% per year. Standard deviations are low, leading to annualized Sharpe ratios of 1.52 (top 5 mean-reversion) and 1.33 (top 5 momentum), respectively.
Journal: Applied Economics
Pages: 5352-5369
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305097
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305097
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5352-5369




Template-Type: ReDIF-Article 1.0
Author-Name: Huanan Xu
Author-X-Name-First: Huanan
Author-X-Name-Last: Xu
Author-Name: Kenneth A. Couch
Author-X-Name-First: Kenneth A.
Author-X-Name-Last: Couch
Title: The business cycle, labor market transitions by age, and the great recession
Abstract: 
 Using matched monthly CPS data, this article studies differences in labour force transitions across age groups focusing on periods prior to and after the start of the Great Recession. Monthly transitions between employment, unemployment, and nonparticipation of 25–55-year-old males are examined from 1996 through 2013. Prior to the Great Recession (1996–2007), younger groups of workers are more likely to move from employment to unemployment and face an increased risk beyond that of other workers of making this transition as the economy worsens; however, this differential responsiveness no longer appears after the start of the Great Recession. Before and after the start of the Great Recession, younger groups of workers are more likely to move from unemployment to employment; however, there is no extra responsiveness among younger workers to the business cycle. Transitions into and out of the labour force nuance these findings; however, there is no evidence of differential responsiveness among younger workers since the start of the Great Recession. These findings challenge interpretation of the movements of unemployment rates by age group over the business cycle as being driven by differential hiring and firing particularly since the start of the Great Recession.
Journal: Applied Economics
Pages: 5370-5396
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307932
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307932
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5370-5396




Template-Type: ReDIF-Article 1.0
Author-Name: Soosung Hwang
Author-X-Name-First: Soosung
Author-X-Name-Last: Hwang
Author-Name: Youngha Cho
Author-X-Name-First: Youngha
Author-X-Name-Last: Cho
Author-Name: Jinho Shin
Author-X-Name-First: Jinho
Author-X-Name-Last: Shin
Title: Does illiquidity matter in residential properties?
Abstract: 
 No, it does not, despite the general perception that illiquidity matters in real estate. As expected, our evidence shows that the illiquidity costs for the U.S. residential properties are large. The costs are equivalent to 12% of the total property returns on average, ranging from 9.5% to 29.5% of property prices depending on the illiquidity level and market conditions. However, when amortized by holding periods, monthly illiquidity costs are on average 0.08%, and illiquidity risk does not appear to be priced in residential properties; illiquid properties do not show higher returns than liquid properties. On the contrary, we find evidence of flight-to-quality in bull markets, that is, high-quality illiquid properties are preferred to low-quality liquid properties in buoyant markets. These results are in sharp contrast with those in equities and bonds where flight-to-liquidity has been reported when markets are in stress.
Journal: Applied Economics
Pages: 1-20
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1189506
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1189506
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:1-20




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Aniruddha Banerjee
Author-X-Name-First: Aniruddha
Author-X-Name-Last: Banerjee
Author-Name: Paul N. Rappoport
Author-X-Name-First: Paul N.
Author-X-Name-Last: Rappoport
Author-Name: Hiroaki Suenaga
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Suenaga
Title: E-commerce transactions, the installed base of credit cards, and the potential mobile E-commerce adoption
Abstract: 
 Mobile e-commerce (m-commerce) relaxes consumers’ temporal and geographic purchasing constraints and encourage the establishment of omnichannel markets. It is often argued that rapid increase in smartphone penetration is the primary driver of m-commerce adoption, whereas others contend that early adoption of m-commerce applications are mostly by “relatively heavy” Internet commerce users. Brynjolfsson et al. (2013) argue that rapid increase in smartphone penetration is the primary driver of m-commerce adoption, whereas Einav et al. (2014) contend that early adoption of m-commerce applications are mostly by ‘relatively heavy’ Internet commerce users. This article explores strength of the influences within a nested multiple-service framework, where the reduced-form econometric analysis allows for interdependency between m-commerce and e-commerce services, and the installed base of credit cards. The results reveal a complex situation in which credit cards facilitate e-commerce services, whereas m-commerce adoptions are driven by prior e-commerce and online transaction activity. Also, higher respondent incomes are negatively associated with proposed m-commerce adoption. Surprisingly, privacy concerns do not affect proposed adoption independently; however, an interaction term suggests privacy remains an adoption barrier for the older persons.
Journal: Applied Economics
Pages: 21-32
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1189507
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1189507
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:21-32




Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Author-Name: Barry O’Mahony
Author-X-Name-First: Barry
Author-X-Name-Last: O’Mahony
Title: Asymmetric causality between Australian inbound and outbound tourism flows
Abstract: 
 We employ the asymmetric version of the Granger causality test to assess how Australian inbound and outbound tourism flows across 49 markets (countries) are driven by the sign-dependent variations in departure series or vice versa. A multivariate generalized autoregressive conditional heteroscedasticity (MGARCH) model is also estimated to study the time-varying co-volatility between inbound and outbound tourism growth rates. We find that rising co-volatility spillovers between inbound and outbound tourism are statistically significant for a number of markets. The six markets that are most susceptible to global shocks are China, Hong Kong, Papua New Guinea, Singapore, South Africa and the United Kingdom. China is by far the largest of these markets and, except for the United Kingdom, both arrivals and departures for each of these countries represent growing markets for Australia. We present recommendations for policymakers and destination management organizations (DMOs) to assist in developing customized strategies targeting resilient inbound markets in order to optimize tourism performance and reduce potential losses in times of crisis.
Journal: Applied Economics
Pages: 33-50
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1189508
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1189508
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:33-50




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew C. Chang
Author-X-Name-First: Andrew C.
Author-X-Name-Last: Chang
Title: Banking consolidation and small firm financing for research and development
Abstract: 
 This article examines the effect of increased market concentration of the banking industry caused by the Riegle–Neal Interstate Banking and Branching Efficiency Act (IBBEA) on the availability of finance for small firms engaged in research and development (R&amp;D). I measure the financing decisions of these small firms using a balanced panel of Small Business Innovation Research (SBIR) applications. Using difference-in-differences, I find IBBEA decreased the supply of finance for small R&amp;D firms. This effect is larger for late adopters of IBBEA, which tended to be states with stronger small banking sectors pre-IBBEA.
Journal: Applied Economics
Pages: 51-65
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192271
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192271
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:51-65




Template-Type: ReDIF-Article 1.0
Author-Name: Serhat Asci
Author-X-Name-First: Serhat
Author-X-Name-Last: Asci
Author-Name: Tatiana Borisova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Borisova
Author-Name: Michael Dukes
Author-X-Name-First: Michael
Author-X-Name-Last: Dukes
Title: Are price strategies effective in managing demand of high residential water users?
Abstract: 
 Encouraging water use efficiency and water conservation is one of the primary goals of water utility companies nationwide. This study estimates price elasticity of residential water demand to measure the responsiveness of water use to price changes, particularly for high water users. Household-level water use data for high residential water users from Central Florida were analysed using 3-stage least square (3SLS). Estimated price elasticity ranges between −0.07 and −0.14. This price elasticity estimate is below most of the estimates reported in the literature (in absolute value). The results imply that for price strategies to be effective in managing water demand of high residential water users, a significant price increase would be needed. Overall, this study highlights the importance of designing water conservation policies tailored to specific groups of customers, and the importance of using these strategies effectively and fairly for different customer groups.
Journal: Applied Economics
Pages: 66-77
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192272
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192272
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:66-77




Template-Type: ReDIF-Article 1.0
Author-Name: Damien S. Eldridge
Author-X-Name-First: Damien S.
Author-X-Name-Last: Eldridge
Author-Name: Ilke Onur
Author-X-Name-First: Ilke
Author-X-Name-Last: Onur
Author-Name: Malathi Velamuri
Author-X-Name-First: Malathi
Author-X-Name-Last: Velamuri
Title: The impact of private hospital insurance on the utilization of hospital care in Australia
Abstract: 
 We use the Australian National Health Survey to estimate the impact of private hospital insurance on the propensity for hospitalization as a private patient. We account for the potential endogeneity of supplementary private hospital insurance purchases and calculate moral hazard based on a difference-of-means estimator. We decompose the moral hazard estimate into a diversion component that is due to an insurance-induced substitution away from public patient care towards private patient care, and an expansion component that measures a pure insurance-induced increase in the propensity to seek private patient care. Our results suggest that on average, private hospital insurance causes a sizable and significant increase in the likelihood of hospital admission as a private patient. However, there is little evidence of an expansion effect; the treatment effect of private hospital insurance on private patient care is driven almost entirely by the substitution away from public patient care towards private patient care. We discuss the implications for policies that aim to expand supplementary private insurance coverage for the purpose of reducing excess demand on the public healthcare system.
Journal: Applied Economics
Pages: 78-95
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192273
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192273
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:78-95




Template-Type: ReDIF-Article 1.0
Author-Name: Sophie Mitra
Author-X-Name-First: Sophie
Author-X-Name-Last: Mitra
Author-Name: Kristine Jones
Author-X-Name-First: Kristine
Author-X-Name-Last: Jones
Title: The impact of recent mental health changes on employment: new evidence from longitudinal data
Abstract: 
 This study uses longitudinal data and four different measures of mental health to tease out the impact of psychiatric disorder onsets and recoveries on employment outcomes. Results suggest that developing a mental health problem leads to a significant increase in the probability of transitioning to non-employment, while a recovery increases the probability of return to work among the not employed with a mental health problem. No consistent effect was found on hours worked and earnings. Research and policy attention is needed with respect to early interventions such as job retention programmes to help workers with mental health problems remain employed as well as interventions that may lead to recovery and return to work. More research is needed especially with data and models that can differentiate between the effects of mental health onsets and recoveries on employment exit and return to work transitions.
Journal: Applied Economics
Pages: 96-109
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192274
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192274
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:96-109




Template-Type: ReDIF-Article 1.0
Author-Name: Feng Qiu
Author-X-Name-First: Feng
Author-X-Name-Last: Qiu
Author-Name: James Rude
Author-X-Name-First: James
Author-X-Name-Last: Rude
Title: Extreme dependence in price transmission analysis
Abstract: 
 We propose a generalized procedure that combines conventional price transmission analysis with copula-based dynamic tail dependence, to examine price relationships under extreme conditions. This approach is used to examine Ukrainian wheat markets where export restrictions combined with price surges, 2006–2008 and 2010–2012, have contributed to a turbulent market. The results indicate that domestic prices were effectively insulated from world price shocks, but that a ‘rocket and feathers’ price relation held between domestic flour and wheat prices. These asymmetric price co-movements changed with the degree of restrictiveness of the export prohibitions.
Journal: Applied Economics
Pages: 4379-4392
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158916
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158916
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4379-4392




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Louis Combes
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Combes
Author-Name: Alexandru Minea
Author-X-Name-First: Alexandru
Author-X-Name-Last: Minea
Author-Name: Moussé Sow
Author-X-Name-First: Moussé
Author-X-Name-Last: Sow
Title: Crises and exchange rate regimes: time to break down the bipolar view?
Abstract: 
 We revisit the link between crises and exchange rate regimes (ERR). Using a wide panel of 90 developed and developing countries over the period 1980–2009, we find that corner ERR are not more prone to crises compared to intermediate ERR. This finding holds for different types of crises (banking, currency and debt), and is robust to a wide set of alternative specifications. Consequently, we clearly break down the traditional bipolar view: countries that aim at preventing crisis episodes should focus less on the choice of the ERR, and instead implement sound structural macroeconomic policies.
Journal: Applied Economics
Pages: 4393-4409
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158917
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158917
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4393-4409




Template-Type: ReDIF-Article 1.0
Author-Name: R. Bellando
Author-X-Name-First: R.
Author-X-Name-Last: Bellando
Author-Name: Z. Ben Braham
Author-X-Name-First: Z.
Author-X-Name-Last: Ben Braham
Author-Name: S. Galanti
Author-X-Name-First: S.
Author-X-Name-Last: Galanti
Title: The profitability of financial analysts’ recommendations: evidence from an emerging market
Abstract: 
 This article aims at measuring recommendation value on the Tunisian market and uses a hand-collected database of 6646 recommendations (2005–2009). We apply the methodology of calendar–time portfolio analysis. This consists of simulating a portfolio that would include stocks depending on the recommendations issued by financial analysts. In order to measure abnormal (or ‘excess’) returns, the raw return of the portfolio is then compared to the evolution of the stock index and to the prediction of the Capital Asset-Pricing Model. Some of the portfolios we build earn a positive significant excess risk-adjusted return of 1.19% per month. Beyond the results that are in line with the literature, we provide two original results. First, ‘sell’ signals are informative, whereas ‘buy’ signals are not. We suggest that it is related to large (small) firms having more ‘buy’ (‘sell’) recommendations and to the direction of the market trend over the period. Second, the fact that recommendation levels have more impact than recommendation changes is explained by the specific informational context on that market, which is that recommendations are systematically disclosed each month, whereas on other markets, recommendations are produced only when the analyst has some new information to disclose.
Journal: Applied Economics
Pages: 4410-4418
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158918
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158918
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4410-4418




Template-Type: ReDIF-Article 1.0
Author-Name: T. Miyazaki
Author-X-Name-First: T.
Author-X-Name-Last: Miyazaki
Author-Name: S. Hamori
Author-X-Name-First: S.
Author-X-Name-Last: Hamori
Title: Asymmetric correlations in gold and other financial markets
Abstract: 
 In this article, we implement a recently developed statistical method to test asymmetries in cross-asset correlations, focusing in particular on the gold market. Our empirical results provide evidence that gold exhibits asymmetric correlations with stocks and the U.S. dollar, but not with bonds. Furthermore, splitting the sample into three characteristic periods, we find that exceedance correlations exhibit substantial time variation even in similar market tensions for same pairs of assets. Our findings imply that investors and fund managers should take into account the asymmetric dependence structure, which depends on the upside or downside of the market.
Journal: Applied Economics
Pages: 4419-4425
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158919
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158919
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4419-4425




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Louis Combes
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Combes
Author-Name: Rasmane Ouedraogo
Author-X-Name-First: Rasmane
Author-X-Name-Last: Ouedraogo
Author-Name: Sampawende J.-A. Tapsoba
Author-X-Name-First: Sampawende J.-A.
Author-X-Name-Last: Tapsoba
Title: Structural shifts in aid dependency and fiscal policy in developing countries
Abstract: 
 Foreign aid is a sizable source of government financing for several developing countries and its allocation matters for the conduct of fiscal policy. This article revisits the fiscal effects of shifts in aid dependency in 59 developing countries from 1960 to 2010. It identifies structural shifts in aid dependency and uses treatment effect methods to assess the fiscal effects of aid. It finds that shifts in aid dependency are frequent and have significant fiscal effects in developing countries. In addition to the traditional evidences of tax and investment displacement and ‘aid illusion,’ we show that upward shifts and downward shifts in aid dependency have asymmetric effects on fiscal accounts in developing countries. Large aid inflows undermine tax capacity and public investment while large reductions in aid inflows tend to keep recipients’ fiscal behaviour intact. Moreover, the tax displacement effect tends to be temporary while the impacts on expenditure items tend to last. Finally, we find that the undesirable fiscal effects of aid are more pronounced in countries with low governance score and low absorptive capacity.
Journal: Applied Economics
Pages: 4426-4446
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158920
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158920
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4426-4446




Template-Type: ReDIF-Article 1.0
Author-Name: Kai Liu
Author-X-Name-First: Kai
Author-X-Name-Last: Liu
Title: Structural fiscal balances of the UK: a state-space DSGE approach
Abstract: 
 This article proposes a new framework to estimate and analyse structural fiscal balances of the UK, by combining the state-space modelling with the Bayesian DSGE modelling. In this way, trends and cycles of aggregate variables can be extracted from data consistently with the macroeconomic theory. A setting of an integrated random walk for the underlying stochastic trends fits the data best. An expansion in government spending can increase nominal fiscal revenue to a certain degree, but the effect is not persistent due to two kinds of crowd-out effects: it crowds out domestic investment; and it pushes up the price of domestic goods and simultaneously crowds out the foreign demand. The shocks to the nominal interest rate, foreign output and the government spending are the three major contributors to the variation of the fiscal revenue cycle.
Journal: Applied Economics
Pages: 4447-4461
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158921
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158921
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4447-4461




Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Álvarez-Díaz
Author-X-Name-First: Marcos
Author-X-Name-Last: Álvarez-Díaz
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Forecasting US consumer price index: does nonlinearity matter?
Abstract: 
 The objective of this article is to predict, both in sample and out of sample, the consumer price index (CPI) of the US economy based on monthly data covering the period of 1980:1–2013:12, using a variety of linear (random walk (RW), autoregressive (AR) and seasonal autoregressive integrated moving average (SARIMA)) and nonlinear (artificial neural network (ANN) and genetic programming (GP)) univariate models. Our results show that, while the SARIMA model is superior relative to other linear and nonlinear models, as it tends to produce smaller forecast errors; statistically, these forecasting gains are not significant relative to higher-order AR and nonlinear models, though simple benchmarks like the RW and AR(1) models are statistically outperformed. Overall, we show that in terms of forecasting the US CPI, accounting for nonlinearity does not necessarily provide us with any statistical gains.
Journal: Applied Economics
Pages: 4462-4475
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158922
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158922
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4462-4475




Template-Type: ReDIF-Article 1.0
Author-Name: Jinghua Xie
Author-X-Name-First: Jinghua
Author-X-Name-Last: Xie
Author-Name: Dengjun Zhang
Author-X-Name-First: Dengjun
Author-X-Name-Last: Zhang
Title: Shipping the good fish out? An empirical study on the EU seafood imports under the EU’s Generalized System of Preferences
Abstract: 
 The impact of the EU (European Union) Generalized System of Preference (GSP) on the relative EU’s demand for seafood quality was evaluated in the study. We first explored the theoretical Alchian–Allen result of change in ad valorem tariffs in an n–good world, and then tested this result in the empirical study. The theoretical analysis suggests that whether a reduced ad valorem tariff in an n–good case raises the relative demand for high-value goods depends not only on the substitutability between high-value and low-value goods but also on the substitutability between these similar goods with their weak substitutes. In the empirical sections, we first estimated the elasticities of the substitutions and then used these elasticities to evaluate the quality composition of the EU’s seafood imports from the beneficiary countries. The empirical results in general confirm the occurrence of ‘shipping the good fish out’ due to the reduced tariff rates under the EU’s GSP arrangements.
Journal: Applied Economics
Pages: 2606-2617
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243216
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243216
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2606-2617




Template-Type: ReDIF-Article 1.0
Author-Name: Shiying Zhang
Author-X-Name-First: Shiying
Author-X-Name-Last: Zhang
Title: Effects of attending preschool on adolescents’ outcomes: evidence from China
Abstract: 
 This study examines whether attending preschool enhances the cognitive abilities, health and socialization of junior high school students in China. Using propensity score matching to control for a rich data set of student, family and school characteristics, I find that attending preschool enhances cognition among seventh graders but those gains fade among ninth graders. The greatest benefits from preschool accrue to both seventh and ninth graders from economically disadvantaged families. Results for non-cognitive categories are mixed, and no evidence suggests superior health outcomes. Evidence also shows cognitive benefits among adolescents – especially those economically disadvantaged – who entered preschool earlier.
Journal: Applied Economics
Pages: 2618-2629
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243217
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243217
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2618-2629




Template-Type: ReDIF-Article 1.0
Author-Name: Li Zhou
Author-X-Name-First: Li
Author-X-Name-Last: Zhou
Author-Name: Xi Tian
Author-X-Name-First: Xi
Author-X-Name-Last: Tian
Author-Name: Zhengyi Zhou
Author-X-Name-First: Zhengyi
Author-X-Name-Last: Zhou
Title: The effects of environmental provisions in RTAs on PM2.5 air pollution
Abstract: 
 This article examines the effect of regional trade agreements (RTAs) with and without environmental provisions on the concentration of PM2.5 (fine particulate matter $$ \le 2.5\,{\rm{\mu m}}$$≤2.5μm
 in diameter), which is one of the most significant air pollutants. Using panel data for 136 countries from 2001 to 2010, we estimate the effect of trade liberalization under RTAs and the effect of environmental regulations under RTAs with environmental provisions. Moreover, paired countries are used to examine the effect of RTAs with environmental provisions on the convergence of PM2.5 concentrations. Human behaviours and natural characteristics are added as control variables, and the potential endogeneity and environmental provisions of RTAs as well as the gross domestic product and openness of specific regions are addressed using instrumental variables or difference-in-differences after propensity score matching. The main results indicate that RTAs without environmental provision terms lead to worse air quality in terms of PM2.5 concentrations, whereas RTAs with environmental provision terms are likely to be associated with a lower level of PM2.5 concentrations. In addition, RTAs with environmental provisions, especially environmental cooperation provisions, facilitate the convergence of PM2.5 concentrations between contracting countries, which can be explained by the late-mover advantage after distinguishing North–South, South–South and North–North trade forms.
Journal: Applied Economics
Pages: 2630-2641
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243218
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243218
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2630-2641




Template-Type: ReDIF-Article 1.0
Author-Name: Petrit Gashi
Author-X-Name-First: Petrit
Author-X-Name-Last: Gashi
Author-Name: Mehtap Hisarciklilar
Author-X-Name-First: Mehtap
Author-X-Name-Last: Hisarciklilar
Author-Name: Geoffrey Pugh
Author-X-Name-First: Geoffrey
Author-X-Name-Last: Pugh
Title: Kosovo – EU trade relations: a dynamic panel poisson approach
Abstract: 
 To inform policymaking following trade liberalization between Kosovo and the EU within the framework of the Stabilisation and Association Agreement (SAA), we specify a gravity model to investigate Kosovo’s trade in goods with 28 EU countries over the period 2005–2013. We reconcile competing methodological requirements by using a dynamic Poisson approach to estimation. Together, persistent trade patterns and an unfavourable combination of demand and supply elasticities suggest that trade liberalization in isolation is not sufficient to promote exports but may need to be incorporated within a wider policy and institutional framework. In addition, our findings suggest that trade costs should be a particular focus for policy: distance has a big negative influence on Kosovo’s exports to EU countries; while diaspora communities promote Kosovo’s exports to EU markets, most likely because they offset trade costs.
Journal: Applied Economics
Pages: 2642-2654
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245836
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245836
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2642-2654




Template-Type: ReDIF-Article 1.0
Author-Name: Gaowen Kong
Author-X-Name-First: Gaowen
Author-X-Name-Last: Kong
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Title: Corporate governance, human capital, and productivity: evidence from Chinese non-listed firms
Abstract: 
 This article analyses the effects of corporate governance (CG) and human capital on productivity by using the 1999–2006 data from the National Bureau of Statistics of China (NBSC). The findings of this study are twofold. First, CG and human capital generate significant positive effects on the productivity of both state-owned enterprises (SOEs) and non-SOEs. Second, CG has significantly different moderate and mediate effects on the relationship between human capital and productivity. Our results are robust to different specifications and alternative measures. This study provides clear policy implications by suggesting that the firms in emerging markets, especially SOEs, must improve their CG and their allocation of human capital for them to enhance their productivity.
Journal: Applied Economics
Pages: 2655-2668
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245837
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245837
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2655-2668




Template-Type: ReDIF-Article 1.0
Author-Name: Yao-Tung Chen
Author-X-Name-First: Yao-Tung
Author-X-Name-Last: Chen
Author-Name: Ker-Tah Hsu
Author-X-Name-First: Ker-Tah
Author-X-Name-Last: Hsu
Author-Name: Ming-Sung Kao
Author-X-Name-First: Ming-Sung
Author-X-Name-Last: Kao
Author-Name: Yuh-Yao Lin
Author-X-Name-First: Yuh-Yao
Author-X-Name-Last: Lin
Title: The choice between civil service and entrepreneurship in the presence of credit rationing
Abstract: 
 This article examines the role of opportunities to be civil servants in determining both an individual’s ability to borrow to be an entrepreneur and his career choices that are related to the endowment of wealth. It is assumed that the civil servants are hired to produce the public goods or services that benefit all the entrepreneurs hiring workers to produce private goods. In considering the case where the position of a civil servant is randomly up for grabs without rent-seeking, it is known that the effect of a rise in the number of civil servants to be hired on an individual’s ability to borrow is mainly based on the improved efficiency and a rise in the wage due to an increase in the demand for workers. When the position of a civil servant is secured through rent-seeking, it is found that an improvement in the financial environment will lower the cost of rent-seeking if the welfare of the civil servant is not too high.
Journal: Applied Economics
Pages: 2669-2678
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245839
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245839
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2669-2678




Template-Type: ReDIF-Article 1.0
Author-Name: Dorel N. Manitiu
Author-X-Name-First: Dorel N.
Author-X-Name-Last: Manitiu
Author-Name: Giulio Pedrini
Author-X-Name-First: Giulio
Author-X-Name-Last: Pedrini
Title: The countercyclical role of Italian local banks during the financial crisis
Abstract: 
 The article analyses the role of local banks in Italy during the 2008–2009 crisis from the perspective of the relationship lending model. During the crisis, the risk of cascading failures of financial organizations has dramatically increased, thus causing a return of attention to local banking as a possible source of countercyclical behaviours in the financial markets thanks to their ability to establish fiduciary long-term relationships with small businesses.The purpose of this article is to test this hypothesis and to disentangle the response of local banks during the financial turmoil according to their governance structure and location. Our results show that non-independent local banks and, to a limited extent, cooperative banks located in the rural area actually played a significant countercyclical role across the crisis. Policy implications suggest that prudential supervision should rethink the indicators of systemic risk in order to differentiate banks according to their capability of mitigating it.
Journal: Applied Economics
Pages: 2679-2696
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245840
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245840
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2679-2696




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2017.1282088
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282088
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:i-i




Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Kreutzer
Author-X-Name-First: Fabian
Author-X-Name-Last: Kreutzer
Author-Name: Wolfram Berger
Author-X-Name-First: Wolfram
Author-X-Name-Last: Berger
Title: The labour market effects of offshoring of small and medium-sized firms: micro-level evidence for Germany
Abstract: 
 Small and medium-sized enterprises (SMEs) are the economic powerhouse of many OECD countries (perhaps most prominently so in Germany). Yet, the labour market dynamics caused by the internationalization of their production activities are largely unexplored. We use survey-based micro-level data for Germany to explore the employment effects of offshoring of SMEs, relying on propensity score matching and difference-in-difference analysis. We find evidence for a downsizing effect in the immediate aftermath of offshoring whereas, initially, job creation is not spurred. In the medium run, we find evidence for a slowing down of employment dynamics of offshoring firms (that tend to belong to the better performing SMEs in Germany) relative to non-offshoring firms. Even though our results do not point to a net employment loss in the medium run, our evidence suggests that offshoring may lead to less jobs being created. This conclusion cannot be confirmed for large companies.
Journal: Applied Economics
Pages: 3416-3431
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420900
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420900
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3416-3431




Template-Type: ReDIF-Article 1.0
Author-Name: María Concepción Pérez-Cárceles
Author-X-Name-First: María Concepción
Author-X-Name-Last: Pérez-Cárceles
Author-Name: Juan Cándido Gómez-Gallego
Author-X-Name-First: Juan Cándido
Author-X-Name-Last: Gómez-Gallego
Author-Name: María Gómez-Gallego
Author-X-Name-First: María
Author-X-Name-Last: Gómez-Gallego
Title: Environmental factors affecting European and Central Asian health-systems’ bias-corrected efficiency
Abstract: 
 Health expenditures comprise a large part of national incomes, which explains the growing interest of government agencies in establishing efficient control and management policies in the current context of economic difficulties. One of the main problems in efficiency analysis is to determine the environmental variables that have an impact on the production process. In particular, employing data on the European and Central Asian health systems, the article demonstrates that bias corrected Data Envelopment Analysis is most appropriate measuring efficiency than traditional Data Envelopment Analysis. Bias correction, implies a higher potential resources reduction, affects the ranking of health systems and allows variables influencing efficiency which would be undiscovered with non-corrected estimation. The second stage determines that lifestyle factors, policy organization and location of countries affect the efficiency results and cause differences among the countries. The contribution of these results is particularly useful facing the decision making by governments. Their strategies should be oriented to implementing active policies to struggle against smoking and promoting health policies aimed at increasing the level of immunization in order to be more effective improving management efficiency.
Journal: Applied Economics
Pages: 3432-3440
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420901
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420901
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3432-3440




Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Mesly
Author-X-Name-First: Olivier
Author-X-Name-Last: Mesly
Author-Name: François-Éric Racicot
Author-X-Name-First: François-Éric
Author-X-Name-Last: Racicot
Title: Heteroscedasticity of deviations in market bubble moments – how the goods and bads lead to the ugly
Abstract: 
 We conjecture that market bubbles may be the results of the interplay of Goods and Bads (toxic products) which develop through three interlocking moments – herding, swarming and stampeding, with deviations marked by heteroscedasticity. We use our stylized model of financial predation, the Consolidated Model of Financial Predation, and data we have accumulated through in-the-field eight-year research and the study of 30 years of U.S. market history in order to explore the foundations of market crises. We find that blind trust (or the positivity bias) and of the fear to miss out on an opportunity to enter/exit a market impacts the investors’ decisions to invest or retract. We show how markets are driven towards a make-or-break predatory dynamic that creates winners and losers due in part to weak regulations and identify a constant k that permeates market behaviours.
Journal: Applied Economics
Pages: 3441-3463
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420902
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420902
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3441-3463




Template-Type: ReDIF-Article 1.0
Author-Name: Edward Oczkowski
Author-X-Name-First: Edward
Author-X-Name-Last: Oczkowski
Title: Modelling prices and the reputation of individual named wines
Abstract: 
 This article develops empirical models to assess the relation between the reputation of an individual named wine and its price. Unrestricted and polynomial distributed lag models are used to assess the impact of past expert quality ratings on the prices of Australian premium wines. Results point to the practical unimportance of current wine quality scores impacting prices and suggest that quality score lag effects up to six years may be important. The largest individual lagged impact of quality on price is estimated to occur at approximately two years, and prices are estimated to increase by more than 10% over six years for a one-point quality score increase. A procedure for identifying potential wine price bargains based on a comparison of price predictions from estimated wine reputation and current quality measures is illustrated. The implications of the findings for wine producers are also discussed.
Journal: Applied Economics
Pages: 3464-3476
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1422599
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1422599
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3464-3476




Template-Type: ReDIF-Article 1.0
Author-Name: Ryan S Sullivan
Author-X-Name-First: Ryan S
Author-X-Name-Last: Sullivan
Author-Name: Alissa Dubnicki
Author-X-Name-First: Alissa
Author-X-Name-Last: Dubnicki
Author-Name: Donald H Dutkowsky
Author-X-Name-First: Donald H
Author-X-Name-Last: Dutkowsky
Title: Research, teaching, and ‘other’: what determines job placement of economics Ph.D.s?
Abstract: 
 This article examines job placement for Economics Ph.D.s seeking junior-level positions using a data set constructed from job candidate vitas, public websites, and queries to programme directors. Based upon multinomial logit estimation, being from highly ranked graduate institutions and having high quality publications has a significantly positive effect on placement at a top 20 academic institution or Doctoral-level institution. Teaching experience – as a teaching assistant (TA) or independent instructor – has a significantly positive effect on placement, but only for institutions ranked below the top 60, Masters and Baccalaureate institutions, and non-tenure track academic positions. We find little evidence on the effect of teaching in tenure track hires for departments with Doctoral programmes or mid-tier prestige. Moreover, teaching experience has a significantly negative effect on placement in the top group of academic institutions in Economics.
Journal: Applied Economics
Pages: 3477-3492
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430331
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430331
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3477-3492




Template-Type: ReDIF-Article 1.0
Author-Name: Agata Wierzbowska
Author-X-Name-First: Agata
Author-X-Name-Last: Wierzbowska
Author-Name: Masahiko Shibamoto
Author-X-Name-First: Masahiko
Author-X-Name-Last: Shibamoto
Title: Cross-country evidence on determinants of fiscal policy effectiveness: the role of trade and capital flows
Abstract: 
 This article studies the determinants of size differentials between fiscal multipliers in countries around the world, both advanced and developing economies. We introduce variables not considered before for explaining multiplier size differentials, such as capital flows and the openness of capital markets, while controlling for domestic conditions and exchange rate regimes. We also disaggregate GDP into its main components in order to identify the channels through which external and internal factors can influence GDP after a change in fiscal policy. Our results point to the existence of a new channel through which fiscal policy effectiveness is affected. Capital flows, especially FDI flows, play an important role in determining the sizes of fiscal multipliers, and a country’s external conditions largely explain GDP changes after fiscal expenditure shocks. Our results also point towards a strong link between a country’s international position and its real economy.
Journal: Applied Economics
Pages: 3493-3514
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430332
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430332
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3493-3514




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaofei Li
Author-X-Name-First: Xiaofei
Author-X-Name-Last: Li
Author-Name: Brady Brewer
Author-X-Name-First: Brady
Author-X-Name-Last: Brewer
Author-Name: Cesar Escalante
Author-X-Name-First: Cesar
Author-X-Name-Last: Escalante
Title: Pre-recession efficiencies and input allocation decisions of agricultural and critically insolvent banks
Abstract: 
 The late 2000s’ economic recession is considered the longest economic downturn since the 1930s Great Depression. Declining real estate values ignited an increase in loan defaults and mortgage foreclosures that led to a surge of bank failures at a rate not experienced by the U.S. banking industry since the 1980s. A total of 509 bank failures were recorded by the FDIC from January 2007–December 2014, with nearly 60% of these failures occurring in 2009 and 2010. In contrast, there were only 24 bank failures in the U.S. during the 7-year period prior to 2007. This study analyzed certain components of operating decisions made by banks that either survived or became critically insolvent during the late 2000s financial crisis using an Input Distance Stochastic Frontier function to estimate the technical efficiency (TE) and allocative efficiency (AE) between agricultural banks and non-agricultural banks. This efficiency analysis was applied to a 7-year pre-recession period and is designed to final out any early warning signals that decrease the efficiency level of banks. Results suggest that survival banks were more technically efficient than critically insolvent banks, and banks’ tendency to utilize cheaper inputs were more likely to stand the economic crisis.
Journal: Applied Economics
Pages: 3515-3531
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430333
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430333
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3515-3531




Template-Type: ReDIF-Article 1.0
Author-Name: Nermeen Shehata
Author-X-Name-First: Nermeen
Author-X-Name-Last: Shehata
Author-Name: Ahmed Salhin
Author-X-Name-First: Ahmed
Author-X-Name-Last: Salhin
Author-Name: Moataz El-Helaly
Author-X-Name-First: Moataz
Author-X-Name-Last: El-Helaly
Title: Board diversity and firm performance: evidence from the U.K. SMEs
Abstract: 
 This study examines the relationship between board diversity and firm performance in small- and medium-sized enterprises (SMEs) in the U.K. In particular, we investigate the role of gender and age as two dimensions of diversity. Using a large sample of SMEs (34,798 firms) located in the U.K. and focusing on the period from 2005 to 2013, our results show a significant negative association between each of gender diversity and age diversity, and firm performance. Our evidence yields important insights on the association between board diversity and firm performance, and calls suggestions for increased board diversity into question. A possible explanation for our findings could be due to the fact that our sampled firms are SMEs, whereas those in previous studies have been large enterprises. This research provides insights to entrepreneurs on how to enhance their performance, and to governments and policymakers on the development of rules that would achieve better performance in the SME sector.
Journal: Applied Economics
Pages: 4817-4832
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293796
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293796
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4817-4832




Template-Type: ReDIF-Article 1.0
Author-Name: Ju Ryum Chung
Author-X-Name-First: Ju Ryum
Author-X-Name-Last: Chung
Author-Name: Eun Jung Cho
Author-X-Name-First: Eun Jung
Author-X-Name-Last: Cho
Author-Name: Ho-Young Lee
Author-X-Name-First: Ho-Young
Author-X-Name-Last: Lee
Author-Name: Myungsoo Son
Author-X-Name-First: Myungsoo
Author-X-Name-Last: Son
Title: The impact of labour unions on external auditor selection and audit scope: evidence from the Korean market
Abstract: 
 We examine whether labour unions influence external auditor selection and audit scope. As a major user group of financial information, labour unions likely demand financial information of high quality and thus high-quality audits. As a union’s request for wage increases is likely strong when a firm is performing well, management facing wage negotiations with the labour union has incentives to manipulate earnings downward and may therefore prefer auditors who allow more discretion. Using union data unique to Korea during 2005–2008, we find that firms with a stronger labour union tend to choose higher-quality auditors (i.e. Big N or industry specialist auditors). We also find that unionization is negatively (positively) associated with positive (negative) abnormal audit fees and audit hours, and the effects are more pronounced when the union is stronger and more active. Given that departures from normal audit fees and audit hours in either direction arguably impair audit quality, this finding is consistent with our prediction of unions’ demand for high-quality audits. Overall, our findings suggest that labour unions play an important role in determining audit quality.
Journal: Applied Economics
Pages: 4833-4850
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296546
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296546
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4833-4850




Template-Type: ReDIF-Article 1.0
Author-Name: Zhen Xu
Author-X-Name-First: Zhen
Author-X-Name-Last: Xu
Author-Name: Jianbai Huang
Author-X-Name-First: Jianbai
Author-X-Name-Last: Huang
Author-Name: Feitao Jiang
Author-X-Name-First: Feitao
Author-X-Name-Last: Jiang
Title: Subsidy competition, industrial land price distortions and overinvestment: empirical evidence from China’s manufacturing enterprises
Abstract: 
 In China, offering inexpensive industrial land is a major means for local governments to participate in interregional subsidy competition, which caused regional industrial land price distortions. This article examines the effect of regional industrial land price distortions on the overinvestment of Chinese manufacturing enterprises. Chinese industrial enterprises data and land price monitoring data of 49 major cities in China between 1998 and 2007 are employed. This article has found that industrial land price distortions will significantly stimulate the overinvestment of manufacturing enterprises. Such a promoting effect varies among manufacturing enterprises of different ownership and industry attributes. Industrial land price distortions have the most significant promoting effect on the overinvestment of foreign-invested firms, followed by private firms, while state-owned enterprises are the least affected. Compared with private heavy-industry firms, industrial land price distortions have a more significant effect on the overinvestment of private light-industry firms. Compared with foreign-invested heavy-industry firms, industrial land price distortions have a more significant effect on the overinvestment of foreign-invested light-industry firms. This study represents a positive exploration and supplement to the existing studies on the effects of subsidy competition on corporate investment behaviours and the studies on Chinese-style subsidy competition.
Journal: Applied Economics
Pages: 4851-4870
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296547
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296547
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4851-4870




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Brechot
Author-X-Name-First: Marc
Author-X-Name-Last: Brechot
Author-Name: Stephan Nüesch
Author-X-Name-First: Stephan
Author-X-Name-Last: Nüesch
Author-Name: Egon Franck
Author-X-Name-First: Egon
Author-X-Name-Last: Franck
Title: Does sports activity improve health? Representative evidence using local density of sports facilities as an instrument
Abstract: 
 Using representative and geocoded data from the Swiss Household Panel and the Swiss Business Census, we estimate the effect of sports activity on health. OLS models show that sports activity significantly decreases overweight, sleeping problems, headaches, back problems, and perceived health impediments in everyday activities and significantly increases health satisfaction. Because sports activity is likely to be misreported and correlated with unobserved determinants of health, we use the number of sports facilities within 6 miles of the individual’s residence as an instrument for sports activity. Although the instrument is powerful in explaining sports activity, the second-stage effects on health are mostly statistically insignificant due to the high SEs of the IV estimates.
Journal: Applied Economics
Pages: 4871-4884
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296548
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296548
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4871-4884




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Mangani
Author-X-Name-First: Andrea
Author-X-Name-Last: Mangani
Title: Social networking websites: who survives?
Abstract: 
 This article studies the relationship between the characteristics of social networking sites (SNSs) and their probability of survival. The data sample includes 224 SNSs launched throughout the world from 1995 to 2015 and that can be described by focus strategy, business financing methods and interactions with external companies, such as partnerships, mergers and acquisitions. Three factors are systematically associated with closure hazard rates. First, compared with SNSs that address a specialized audience, generalist SNSs have a three times higher probability of closing. Second, being the target of a merger or acquisition more than doubles the probability of closure. Third, new entrants have higher probability to survive if compared with SNSs with experience in the industry.
Journal: Applied Economics
Pages: 4885-4896
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296549
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296549
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4885-4896




Template-Type: ReDIF-Article 1.0
Author-Name: Kelly Burns
Author-X-Name-First: Kelly
Author-X-Name-Last: Burns
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: Demystifying the Meese–Rogoff puzzle: structural breaks or measures of forecasting accuracy?
Abstract: 
 Structural breaks have been suggested by several economists as a possible explanation for the Meese–Rogoff puzzle, in the sense that an exchange rate model can outperform the random walk in terms of the out-of-sample forecasting error if the period under investigation is free of structural breaks. The results indicate that structural breaks cannot explain the inability of the flexible price monetary model to outperform the random walk. The only plausible explanation for the Meese–Rogoff puzzle is that forecasting accuracy is traditionally assessed by magnitude-only measures. When forecasting accuracy is assessed by alternative measures that do not rely exclusively on the magnitude of error, the monetary model can outperform the random walk regardless of the presence or otherwise of structural breaks.
Journal: Applied Economics
Pages: 4897-4910
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296550
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296550
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4897-4910




Template-Type: ReDIF-Article 1.0
Author-Name: Brian Meehan
Author-X-Name-First: Brian
Author-X-Name-Last: Meehan
Author-Name: Bruce L. Benson
Author-X-Name-First: Bruce L.
Author-X-Name-Last: Benson
Title: Does private security affect crime?: a test using state regulations as instruments
Abstract: 
 Private security is employed to deter criminals from attacking specific targets, presumably not to produce general deterrence. Indeed, private security generates negative spillovers as criminals substitute non-protected targets for protected targets. Specific deterrence efforts may generate positive spillovers too, however, by raising the expected cost of committing crimes, thereby reducing crime in an area. The hypothesis that private security deters crime at the state level is tested. The demand for private security in an area is expected to be simultaneously dependent on the level of crime; so, an instrumental variables approach is employed in a panel-data fixed-effect model using state-level data from 1998 to 2010. Instruments for the amount of private security are state-wide licensing regulations for firms specializing in providing security, since these regulations should influence entry. Some state-level measures of violent and property crime are shown to be negatively and significantly related to increases in private security, suggesting that private security generates a general deterrence effect.
Journal: Applied Economics
Pages: 4911-4924
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296551
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296551
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4911-4924




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: 4925-4926
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1335975
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1335975
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4925-4926




Template-Type: ReDIF-Article 1.0
Author-Name: Johanna Garnitz
Author-X-Name-First: Johanna
Author-X-Name-Last: Garnitz
Author-Name: Robert Lehmann
Author-X-Name-First: Robert
Author-X-Name-Last: Lehmann
Author-Name: Klaus Wohlrabe
Author-X-Name-First: Klaus
Author-X-Name-Last: Wohlrabe
Title: Forecasting GDP all over the world using leading indicators based on comprehensive survey data
Abstract: 
 Comprehensive and international comparable leading indicators across countries and continents are rare. In this paper, we use a free and instantaneous available source of leading indicators, the ifo World Economic Survey (WES), to forecast growth of Gross Domestic Product (GDP) in 44 countries and three country aggregates separately. We come up with three major results. First, for more than three-fourths of the countries or country-aggregates in our sample, a model containing one of the major WES indicators produces on average lower forecast errors compared to a benchmark model. Second, the most important WES indicators are either the economic climate or the expectations on future economic development for the next six months. And third, adding the WES indicators of the main trading partners leads to a further increase in forecast accuracy in more than 50% of the countries. It seems therefore reasonable to incorporate economic signals from the domestic economy’s main trading partners.
Journal: Applied Economics
Pages: 5802-5816
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1624915
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624915
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5802-5816




Template-Type: ReDIF-Article 1.0
Author-Name: Jinook Jeong
Author-X-Name-First: Jinook
Author-X-Name-Last: Jeong
Author-Name: Jee Young Kim
Author-X-Name-First: Jee Young
Author-X-Name-Last: Kim
Author-Name: Yoon Jae Ro
Author-X-Name-First: Yoon Jae
Author-X-Name-Last: Ro
Title: On the efficiency of racetrack betting market: a new test for the favourite-longshot bias
Abstract: 
 A number of empirical studies on the efficiency of racetrack betting market have shown the ‘favourite-longshot bias,’ which means longshots are overbet while favourites are underbet. Asian markets such as Hong Kong and Japan, however, have produced some contradictory empirical evidence to the bias. One critical element in the efficiency test procedure is how to assess the unobservable objective winning probability of a horse in a race. This paper proposes a new test framework with a more general evaluation of the objective probability of winning than the traditional method. Unlike the traditional method, our model allows the heterogeneity of the horses and the races. We apply the new empirical method to test whether the favourite-longshot bias is present in racetrack betting market of Korea. We found that the favourite-longshot bias exists in the racetrack market of Korea and the result distinguishes Korean racetrack market from other Asian markets.
Journal: Applied Economics
Pages: 5817-5828
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1624918
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624918
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5817-5828




Template-Type: ReDIF-Article 1.0
Author-Name: Thao Pham
Author-X-Name-First: Thao
Author-X-Name-Last: Pham
Title: Do German renewable energy resources affect prices and mitigate market power in the French electricity market ?
Abstract: 
 Several empirical studies show that renewable energy sources such as wind and solar power, typically supplied at low marginal cost, can cause electricity market prices to fall. Recent theoretical research and simulations also highlight the link between the integration of renewable energy and market performance in an oligopolistic energy market. This article looks at these dynamics in the context of cross-border effects between two highly interconnected electricity markets, France and Germany. Using a rich panel dataset for hourly data from November 2009 to July 2015, I estimate the impact of German wind and solar power production on both prices and market power in the French wholesale market. The findings highlight the importance of coordinating energy policies via joint renewable energy support schemes among interconnected European electricity markets.
Journal: Applied Economics
Pages: 5829-5842
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1624919
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624919
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5829-5842




Template-Type: ReDIF-Article 1.0
Author-Name: Insook Lee
Author-X-Name-First: Insook
Author-X-Name-Last: Lee
Title: The effect of death tax on the labour supply of donors: evidence from TRA97
Abstract: 
 Exploiting estate tax cuts from the Taxpayer Relief Act of 1997 (TRA97), this paper estimates the effect of death tax on the labour supply of living potential donors. To this end, difference-in-difference with multiple imputation approach is applied to micro-level panel data. This paper finds that the estate tax cuts makes no difference in labour force participation or working hours of potential donors in a statistically meaningful way, although the TRA97 reduces marginal estate tax rates by 37.51% on average. This finding suggests that the death tax causes no meaningful distortion of living potential-donors’ labour supplies at either extensive or intensive margin.
Journal: Applied Economics
Pages: 5843-5855
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1626344
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1626344
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5843-5855




Template-Type: ReDIF-Article 1.0
Author-Name: Nikos Benos
Author-X-Name-First: Nikos
Author-X-Name-Last: Benos
Author-Name: Sotiris Karkalakos
Author-X-Name-First: Sotiris
Author-X-Name-Last: Karkalakos
Author-Name: Stefania Zotou
Author-X-Name-First: Stefania
Author-X-Name-Last: Zotou
Title: Spatial and economic patterns in life expectancy among US States
Abstract: 
 This study investigates the determinants of gender-specific life expectancy across US states over the period 1995–2007. We employ a production function specification where life expectancy depends on health expenditure, income, education and lifestyle variables, allowing for spatial effects. Empirical results suggest that education attainment and health expenditure are the main factors behind improving longevity, whereas smoking bears a strong negative influence. For robustness purposes, we also use health spending as well as education criteria, apart from geographical ones to model interstate spillovers. In the former case, states with similar health expenditure are ‘neighbors’ and affect positively the life expectancy process. If education is applied instead of health spending together with geographic proximity, the spatial correlation is insignificant, i.e. education ‘neighbors’ do not affect life expectancy. Our findings do not imply significant gender differences regarding health production. The results suggest that health care policy will have to focus on wider economic and social considerations, like education and lifestyle changes, except medical care provision in order to exploit the full potential for life expectancy improvements of the US population.
Journal: Applied Economics
Pages: 5856-5869
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1630706
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630706
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5856-5869




Template-Type: ReDIF-Article 1.0
Author-Name: Austin F. Eggers
Author-X-Name-First: Austin F.
Author-X-Name-Last: Eggers
Author-Name: Peter A Groothuis
Author-X-Name-First: Peter A
Author-X-Name-Last: Groothuis
Author-Name: Parker Redding
Author-X-Name-First: Parker
Author-X-Name-Last: Redding
Author-Name: Kurt W. Rotthoff
Author-X-Name-First: Kurt W.
Author-X-Name-Last: Rotthoff
Author-Name: Michael Solimini
Author-X-Name-First: Michael
Author-X-Name-Last: Solimini
Title: The negative effect of NCAA football bowl bans on university enrolment and applications
Abstract: 
 Universities provide consumption amenities to students in addition to their educational services. Collegiate sports programs have been characterized as one of these consumption amenities. Previous research has shown that athletic success has a positive impact on both the quantity and quality of students attending a university. Alternatively, we analyse if athletic malfeasance, as measured by NCAA postseason bans of football programs, negatively affects either the quantity or quality of student applications or enrolment. Our findings suggest that athletic malfeasance that results in a postseason football bowl ban lowers the quantity of applications, admittances and enrolment to a university. In addition, we find that universities respond to decreased application numbers by increasing their admission rates, while students who are admitted to the school enrol at the same rate as before the ban. Thus, the reduced enrolment is the result of a smaller applicant pool and not the result of a lower rate of enrolment. Lastly, we do not detect any reduction in student quality at the sanctioned university. Our results demonstrate that impropriety by an athletics program directly impacts a university’s non-athlete student enrolment by influencing the amenity mix provided by the university.
Journal: Applied Economics
Pages: 5870-5877
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1630708
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630708
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5870-5877




Template-Type: ReDIF-Article 1.0
Author-Name: Nour Kattih
Author-X-Name-First: Nour
Author-X-Name-Last: Kattih
Author-Name: Fady Mansour
Author-X-Name-First: Fady
Author-X-Name-Last: Mansour
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Small firms, bigger changes: health insurance coverage take-up rates in small firms after the ACA
Abstract: 
 Measuring the impact of the Affordable Care Act of 2010 (ACA) on employer-sponsored health insurance is essential in an era of constant changes to health policy. Using data from the Kaiser Family Foundation Employer Survey, we focus on firms with fewer than 50 employees in order to isolate the effect of the ACA on small firms. We utilize a differences‐in‐differences approach with a time fixed effect structure to provide analysis for a treatment group of small firms and a control group of large firms. After excluding firms with grandfathered plans, we find that the ACA provisions reduced health insurance coverage take-up rates in small firms by 1.96 to 2.67 percentage points (compared to large firms).
Journal: Applied Economics
Pages: 5878-5889
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1630710
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630710
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5878-5889




Template-Type: ReDIF-Article 1.0
Author-Name: Demetris Christodoulou
Author-X-Name-First: Demetris
Author-X-Name-Last: Christodoulou
Title: The accounting identity trap: identification under stock-and-flow rank deficiency
Abstract: 
 Empirical research relying on inputs from published company financial statements ignore the fact that the observed accounting data matrix has been purposefully designed to be rank deficient by means of articulation between stocks and flows. This inherent feature of the data-generating process suggests structural non-identification when both stocks and flows appear in the design matrix and a constraint is required to identify parameters. Much financial research has fallen into this ‘accounting identity trap’ and routinely employs implicit constraints to enable estimation, albeit without acknowledgement of the constraints hence the misleading inferences. This article elucidates the problem of parameter identification under stock-and-flow rank deficiency using existing applications on equity pricing. The focus is on the interpretation of slope coefficients that must be anchored on economically defensible parameter constraints.
Journal: Applied Economics
Pages: 1413-1427
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363860
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363860
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1413-1427




Template-Type: ReDIF-Article 1.0
Author-Name: Linlan Xiao
Author-X-Name-First: Linlan
Author-X-Name-Last: Xiao
Author-Name: Vigdis Boasson
Author-X-Name-First: Vigdis
Author-X-Name-Last: Boasson
Author-Name: Sergey Shishlenin
Author-X-Name-First: Sergey
Author-X-Name-Last: Shishlenin
Author-Name: Victoria Makushina
Author-X-Name-First: Victoria
Author-X-Name-Last: Makushina
Title: Volatility forecasting: combinations of realized volatility measures and forecasting models
Abstract: 
 This article examines financial time series volatility forecasting performance. Different from other studies which either focus on combining individual realized measures or combining forecasting models, we consider both. Specifically, we construct nine important individual realized measures and consider combinations including the mean, the median and the geometric means as well as an optimal combination. We also apply a simple AR(1) model, an SV model with contemporaneous dependence, an HAR model and three linear combinations of these models. Using the robust forecasting evaluation measures including RMSE and QLIKE, our empirical evidence from both equity market indices and exchange rates suggests that combinations of both volatility measures and forecasting models improve the forecast performance significantly.
Journal: Applied Economics
Pages: 1428-1441
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363863
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363863
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1428-1441




Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Rhaiem
Author-X-Name-First: Mehdi
Author-X-Name-Last: Rhaiem
Author-Name: Lutz Bornmann
Author-X-Name-First: Lutz
Author-X-Name-Last: Bornmann
Title: Reference Publication Year Spectroscopy (RPYS) with publications in the area of academic efficiency studies: what are the historical roots of this research topic?
Abstract: 
 In this study, we explore the historical roots of the relatively new topic in scientometrics of academic efficiency assessments. We are interested in the contributions of researchers from the past which have been revealed as important for the topic in the long run. The technique of Reference Publication Year Spectroscopy (RPYS) has been recently introduced which is based on the analysis of the frequency with which references are cited in the publications of a specific research field (here: academic efficiency assessments). The study is based on papers conducted for a systematic review of empirical articles on technical efficiency in academic research production: 60 papers (published between 1992 and 2012) and 1314 cited references. Results indicated that 5 peaks are clearly identifiable until 2000. They correspond, respectively, to the years 1957 (The founding article of Farrell), 1978 (Proposition of a new promising approach: the Data Envelopment Analysis (DEA) by Charnes et al.), 1988 (Research-teaching multi-output model and integration of quality indicators), 1990 (DEA in the service of Research Assessment Exercise) and 1997 (Introduction of weight restrictions in DEA). The peaks are described with the underlying publications and recent developments (since 2000) in the area of academic efficiency studies are outlined.
Journal: Applied Economics
Pages: 1442-1453
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363865
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363865
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1442-1453




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Bruns
Author-X-Name-First: Martin
Author-X-Name-Last: Bruns
Author-Name: Tigran Poghosyan
Author-X-Name-First: Tigran
Author-X-Name-Last: Poghosyan
Title: Leading indicators of fiscal distress: evidence from extreme bounds analysis
Abstract: 
 Early warning systems (EWSs) are widely used to assess a country’s vulnerability to fiscal distress. A fiscal distress episode is identified as a period when government experiences extreme funding difficulties. Most EWSs employ a specific set of only fiscal leading indicators predetermined by the researchers, which casts doubt on their robustness. We revisit this issue using extreme bounds analysis, which allows identifying robust leading indicators of fiscal distress from a large set. A robust leading indicator’s effect does not strongly depend on the model specification. Consistent with the theoretical predictions of latest generation crisis models, we find that both fiscal and non-fiscal leading indicators are robust. In addition, we find that a fiscal vulnerability indicator based on fiscal and non-fiscal leading indicators offers a 29% gain in predictive power compared to a traditional one based only on fiscal leading indicators. This suggests that both fiscal and non-fiscal leading indicators should be taken into account when assessing country’s vulnerability to fiscal distress.
Journal: Applied Economics
Pages: 1454-1478
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1366639
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366639
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1454-1478




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: Perry Sadorsky
Author-X-Name-First: Perry
Author-X-Name-Last: Sadorsky
Title: How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis
Abstract: 
 We examine the causal relationship between globalization, economic growth and energy consumption for 25 developed economies using both time series and panel data techniques for the period 1970–2014. Due to the presence of cross-sectional dependence in the panel (countries from Asia, North America, Western Europe and Oceania), we employ the cross-sectional augmented IPS test to ascertain unit root properties. The cointegration test results indicate the presence of a long-run association between globalization, economic growth and energy consumption. Long-run heterogeneous panel elasticities are estimated through the common correlated effects mean group estimator and the augmented mean group estimator. The empirical results reveal that, for most countries, globalization increases energy consumption. In the USA and UK, globalization is negatively correlated with energy consumption. The causality analysis indicates the presence of the globalization-driven energy consumption hypothesis. This empirical analysis suggests insightful policy guidelines for policy makers using globalization as an economic tool to utilize energy efficiently for sustainable economic development in the long run.
Journal: Applied Economics
Pages: 1479-1494
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1366640
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366640
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1479-1494




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael González-Val
Author-X-Name-First: Rafael
Author-X-Name-Last: González-Val
Author-Name: Miriam Marcén
Author-X-Name-First: Miriam
Author-X-Name-Last: Marcén
Title: Unemployment, marriage and divorce
Abstract: 
 In this article, we examine whether the business cycle plays a role in marriage and divorce. We use data on Spain, since the differences between recession and expansion periods across regions are quite pronounced in that country. We find that the unemployment rate is negatively associated with the marriage rate, pointing to a pro-cyclical evolution of marriage; however, the response of the divorce rate to the business cycle is mixed. Results show the existence of different patterns, depending on geography: divorce rates in coastal regions are pro-cyclical, while in inland regions divorces react to unemployment in a counter-cyclical way.
Journal: Applied Economics
Pages: 1495-1508
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1366642
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366642
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1495-1508




Template-Type: ReDIF-Article 1.0
Author-Name: Robert McNown
Author-X-Name-First: Robert
Author-X-Name-Last: McNown
Author-Name: Chung Yan Sam
Author-X-Name-First: Chung Yan
Author-X-Name-Last: Sam
Author-Name: Soo Khoon Goh
Author-X-Name-First: Soo Khoon
Author-X-Name-Last: Goh
Title: Bootstrapping the autoregressive distributed lag test for cointegration
Abstract: 
 We propose a bootstrap autoregressive-distributed lag (ARDL) test. By applying the appropriate bootstrap method, some weaknesses underlying the Pesaran, Shin and Smith ARDL bounds test are addressed including size and power properties and the elimination of inconclusive inferences. In addition, inferences based solely on the significance of the F-test and single t-test from the ARDL bounds test are not sufficient to avoid degenerate cases. The bootstrap ARDL test provides an additional test on the significance of coefficients on lagged levels of the regressors, which provides a better insight into the cointegration status of the model.
Journal: Applied Economics
Pages: 1509-1521
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1366643
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366643
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1509-1521




Template-Type: ReDIF-Article 1.0
Author-Name: William Martin
Author-X-Name-First: William
Author-X-Name-Last: Martin
Author-Name: Cong S. Pham
Author-X-Name-First: Cong S.
Author-X-Name-Last: Pham
Title: Estimating the gravity model when zero trade flows are frequent and economically determined
Abstract: 
 Since the 1950s, we have known that the presence of zero-valued dependent variables can seriously bias econometric estimates whether the zeros are included or excluded. Yet the widely-used gravity model is frequently estimated on samples that include large fractions of zeros. An influential paper by Santos Silva and Tenreyro – based on simulations that include no economically-determined zeros – concludes that the bias problems resulting from zeros and those resulting from heteroscedasticity and nonlinearity can be solved using the Poisson Pseudo-Maximum-Likelihood (PPML) model including the zero values. This paper begins by adapting the Santos Silva and Tenreyro experimental design to include economically-determined zeros to see whether this conclusion continues to hold. With this design, it finds that alternative estimators have lower bias than PPML. Changing to a Monte Carlo design that replicates the much-higher real-world frequency of predicted values near zero restores the finding of lower bias with the PPML estimator. The results highlight the need for very careful design of Monte Carlo experiments when evaluating alternative estimators of the gravity model.
Journal: Applied Economics
Pages: 2766-2779
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1687838
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1687838
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2766-2779




Template-Type: ReDIF-Article 1.0
Author-Name: Adalgiso Amendola
Author-X-Name-First: Adalgiso
Author-X-Name-Last: Amendola
Author-Name: Roberto Dell’Anno
Author-X-Name-First: Roberto
Author-X-Name-Last: Dell’Anno
Author-Name: Lavinia Parisi
Author-X-Name-First: Lavinia
Author-X-Name-Last: Parisi
Title: How did the Great Recession Affect Gender Disparity in Europe? An Analysis by a Multidimensional Deprivation Approach
Abstract: 
 This paper analyses how the Great Recession affected the gender disparity in material and social deprivation in Europe. We propose multidimensional non-monetary indexes of absolute and relative (i.e. using peer comparisons) deprivations estimated on data from the European Quality of Life Survey for the waves 2007 and 2011. We find that the Great Recession decreased gender disparity over all the dimensions of deprivations. By applying a Blinder-Oaxaca decomposition, we estimate that this decline of gender gap has depended on a reduction of the difference in characteristics between genders that has more than offset an increase of gender discrimination.
Journal: Applied Economics
Pages: 2780-2794
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696934
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696934
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2780-2794




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Holzschuh
Author-X-Name-First: Peter
Author-X-Name-Last: Holzschuh
Author-Name: Ankita Mishra
Author-X-Name-First: Ankita
Author-X-Name-Last: Mishra
Author-Name: Jayant Misra
Author-X-Name-First: Jayant
Author-X-Name-Last: Misra
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Author-Name: Shyam Nath
Author-X-Name-First: Shyam
Author-X-Name-Last: Nath
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: An augmented P-star model of Indian inflation
Abstract: 
 An augmented P-Star model is estimated and tested to identify the drivers of inflation in India. The model includes monetary and non-monetary factors, demand-pull and cost-push factors, and domestic as well as foreign factors. The results show that inflation in India is driven by a combination of monetary factors and non-monetary factors, some of which affect inflation on the supply side while others operate on the demand side. It turns out, however, that inflation in India is determined more by domestic rather than foreign factors.
Journal: Applied Economics
Pages: 2795-2806
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696935
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696935
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2795-2806




Template-Type: ReDIF-Article 1.0
Author-Name: Ahsen Maqsoom
Author-X-Name-First: Ahsen
Author-X-Name-Last: Maqsoom
Author-Name: Abdul Mughees
Author-X-Name-First: Abdul
Author-X-Name-Last: Mughees
Author-Name: Hafiz Zahoor
Author-X-Name-First: Hafiz
Author-X-Name-Last: Zahoor
Author-Name: Adnan Nawaz
Author-X-Name-First: Adnan
Author-X-Name-Last: Nawaz
Author-Name: Khwaja Mateen Mazher
Author-X-Name-First: Khwaja Mateen
Author-X-Name-Last: Mazher
Title: Extrinsic psychosocial stressors and workers’ productivity: impact of employee age and industry experience
Abstract: 
 This paper aims to explore the impact of employee age and industrial experience on extrinsic psychosocial stressors that may influence the productivity of workers. Using an integrated theoretical approach, this study examines four extrinsic psychosocial stressors, i.e. work environment, infrastructure, economy and country environment. The data were collected from Pakistani construction industry through a questionnaire survey approach. The study’s findings show that workers having diverse ages did not agree over several work environments and economy-related psychosocial stressors, whereas workers having diverse industrial experiences were in disagreement over numerous country environment and economy-related psychosocial stressors. The study concludes that firms need to mitigate the work environment related psychosocial stressors in young workers, such as, over congestion and inaccessibility to different tools, high temperature and workspace atmosphere. Moreover, organizational and governmental support are direly needed to overcome the country environment-related psychosocial stressors of less experienced workers who are more susceptible to these stressors due to the complex organizational culture, occurrence of natural disasters and unfavourable economic and political state of the country.
Journal: Applied Economics
Pages: 2807-2820
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696936
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696936
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2807-2820




Template-Type: ReDIF-Article 1.0
Author-Name: Charles-Olivier Amédée-Manesme
Author-X-Name-First: Charles-Olivier
Author-X-Name-Last: Amédée-Manesme
Author-Name: Benoit Faye
Author-X-Name-First: Benoit
Author-X-Name-Last: Faye
Author-Name: Eric Le Fur
Author-X-Name-First: Eric
Author-X-Name-Last: Le Fur
Title: Heterogeneity and fine wine prices: application of the quantile regression approach
Abstract: 
 This study addresses the price heterogeneity of the five first growths of Bordeaux. We apply the quantile regression (QR) approach with market segmentation based on wine bottle price quantiles. We compute the hedonic price of wine attributes for various price segments in the market. This approach is applied to a major dataset comprising approximately 50,000 transactions over the 2003–2017 period. The findings indicate that the relative hedonic prices of several wine attributes differ significantly among deciles. The implications of our results are manifold. Vintage and Parker grades have a strong impact on the variation in wine prices, and there is a hierarchy among the five first growths of Bordeaux. There is also a premium commanded by the reputation and experience of an auction house. Since the financial crisis of 2012–2013, investors have considered that the five first growths are overrated, save for the most expensive wines; for those most expensive ones, investors prefer scarcity to liquidity. These results are of import to several actors in the fine wine market: investors, for example, could use the findings herein to better diversify their wine portfolio, while auction houses could better anticipate their future sales based on consumers’ expectation.
Journal: Applied Economics
Pages: 2821-2840
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696937
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696937
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2821-2840




Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Barbi
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Barbi
Author-Name: Hélyette Geman
Author-X-Name-First: Hélyette
Author-X-Name-Last: Geman
Author-Name: Silvia Romagnoli
Author-X-Name-First: Silvia
Author-X-Name-Last: Romagnoli
Title: Diamonds and precious metals for reduction of portfolio tail risk
Abstract: 
 We study the performance of diamonds compared to gold and other precious metals in mitigating the tail risk of a diversified equity market portfolio over the period June 2007 to October 2018. Our results display a diversification benefit of some diamond indices, which also improve the portfolio reward-to-risk ratio. To corroborate this evidence, we study the dependence structure and tail dependence of diamonds and a broad equity market portfolio and compare it to the dependence obtained with gold and other precious metals. Results from fitting a bivariate copula show that the average left tail dependence reaches its minimum when diamonds are used. We also show that using shares of diamond-mining companies does not provide the same benefits.
Journal: Applied Economics
Pages: 2841-2861
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696938
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696938
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2841-2861




Template-Type: ReDIF-Article 1.0
Author-Name: Amar Bhidé
Author-X-Name-First: Amar
Author-X-Name-Last: Bhidé
Title: Making economics more useful: how technological eclecticism could help
Abstract: 
 Keynes thought it would be ‘splendid’ if economists became more like dentists. Disciplinary economics has instead become more like physics in focusing on concise, universal propositions verified through decisive tests. This focus, I argue, limits the practical utility of the discipline because universal propositions form only a part of new policy recipes. I further suggest that, as in engineering and medicine, developing economic recipes requires eclectic combinations of suggestive tests and judgement. Additionally, I offer a detailed example of how a simulation model can help evaluate new policy combinations that affect the screening of loan applications.
Journal: Applied Economics
Pages: 2862-2881
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696939
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696939
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2862-2881




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriele Angori
Author-X-Name-First: Gabriele
Author-X-Name-Last: Angori
Author-Name: David Aristei
Author-X-Name-First: David
Author-X-Name-Last: Aristei
Author-Name: Manuela Gallo
Author-X-Name-First: Manuela
Author-X-Name-Last: Gallo
Title: Lending technologies, banking relationships, and firms’ access to credit in Italy: the role of firm size
Abstract: 
 This paper analyses the role of lending technologies and banking relationships on firms’ credit access in Italy. Using EFIGE firm-level data, we show that the depth and strength of firm–bank relationships have heterogeneous effects on credit demand and rationing probabilities depending on the size of the borrower. Multiple banking relationships alleviate financial constraints for small firms, while borrowing from a large number of lenders hinders access to credit for large companies. Small and medium-sized enterprises with a higher share of debt with the main bank have a lower probability of being credit denied, as debt concentration contributes to overcome the opacity problems typical of the SMEs. Long-lasting relationships, by reducing information asymmetries, significantly improve access to credit for small and large firms. Conversely, we find that medium-sized enterprises are more exposed to financing constraints as relationship duration increases, due to possible lock-in effects. Finally, firms maintaining banking relationships based on transactional technologies are more likely to be credit denied, while the use of relationship lending technologies improves credit availability for both small and large enterprises.
Journal: Applied Economics
Pages: 6139-6170
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1613503
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613503
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6139-6170




Template-Type: ReDIF-Article 1.0
Author-Name: Maarten van Rooij
Author-X-Name-First: Maarten van
Author-X-Name-Last: Rooij
Author-Name: Jakob de Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: de Haan
Title: Would helicopter money be spent? New evidence for the Netherlands
Abstract: 
 According to some economists, central banks should use ‘helicopter money’ to boost inflation (expectations). Based on a survey among Dutch households, we examine whether respondents would spend the money received via such a transfer. Our results show that respondents expect to spend about 30% of the transfer and that helicopter money would hardly affect inflation expectations. Furthermore, whether transfers come from the central bank or the government makes no difference. Finally, our results suggest that the effect of helicopter money on public trust in the ECB is ambiguous.
Journal: Applied Economics
Pages: 6171-6189
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1613504
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613504
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6171-6189




Template-Type: ReDIF-Article 1.0
Author-Name: Nga Lê
Author-X-Name-First: Nga
Author-X-Name-Last: Lê
Author-Name: Wim Groot
Author-X-Name-First: Wim
Author-X-Name-Last: Groot
Author-Name: Sonila M. Tomini
Author-X-Name-First: Sonila M.
Author-X-Name-Last: Tomini
Author-Name: Florian Tomini
Author-X-Name-First: Florian
Author-X-Name-Last: Tomini
Title: Effects of health insurance on labour supply: evidence from the health care fund for the poor in Vietnam
Abstract: 
 The expansion of health insurance in emerging countries raises concerns about the unintended negative effects of health insurance on labour supply. This article examines the labour supply effects of the Health Care Fund for the Poor (HCFP) in Vietnam in terms of the number of work hours per month and labour force participation (the probability of employment). Employing various matching methods combined with a Difference-in-Differences approach on the Vietnam Household Living Standard Surveys 2002–2006, we show that the HCFP, which aims to provide poor people and disadvantaged minority groups with free health insurance, has a negative effect on labour supply. This is manifested in both the average number of hours worked per month and the probability of employment, suggesting the income effect of the HCFP. Interestingly, the effects are mainly driven by the non-poor recipients living in rural areas, raising the question of the targeting strategy of the programme.
Journal: Applied Economics
Pages: 6190-6212
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1613509
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613509
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6190-6212




Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Wei-Wei Zhang
Author-X-Name-First: Wei-Wei
Author-X-Name-Last: Zhang
Author-Name: Chen-Miao Lin
Author-X-Name-First: Chen-Miao
Author-X-Name-Last: Lin
Title: Firm location and corporate dividend policy: evidence from China
Abstract: 
 We investigate the relation between a firm’s geographic location and its dividend policy. We find that firms headquartered in the National Central Cities, cities with high-speed rail (HSR), and with shorter distance to the nearest National Central City pay higher dividends. We find evidence that attributes the higher dividends to an increase in the number of analysts’ site visits, greater information transparency, and a reduction in financial constraints. Finally, the observed increases in dividends tend to be stronger for firms that benefit the most from improvements in the information environment after the arrival of HSR, such as firms located in regions without regional airports, firms located in areas with a lower regional gross domestic product, firms located a greater distance to the closest National Central City, and firms that are smaller, state-owned, have a shorter listing history in the exchanges, and have a more concentrated ownership.
Journal: Applied Economics
Pages: 6213-6234
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1613511
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613511
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6213-6234




Template-Type: ReDIF-Article 1.0
Author-Name: Elliot Boateng
Author-X-Name-First: Elliot
Author-X-Name-Last: Boateng
Author-Name: Frank W. Agbola
Author-X-Name-First: Frank W.
Author-X-Name-Last: Agbola
Author-Name: Amir Mahmood
Author-X-Name-First: Amir
Author-X-Name-Last: Mahmood
Title: Does the quality of institutions enhance savings? The case of Sub-Saharan Africa
Abstract: 
 Over the last three decades, there has been increasing disparity in savings across regions and income groupings globally. In this paper, we investigate whether the quality of institutions explains the saving disparities in Sub-Saharan Africa (SSA). Utilizing comprehensive panel data and spanning the period 1980–2015, we estimate a savings model using the two-step instrumental variable generalized method of moment (2SIV-GMM) estimator. Our results show that the impact of institutions on savings behaviour differs across regions and income groupings, and in SSA, in aggregate. We find that the level and growth of per capita income and terms of trade enhance savings whereas government consumption expenditure, financial sector development and the elderly dependency rate are savings impeding. The findings are robust to alternative model specification and highlight the importance of institutions in influencing savings behaviour in SSA.
Journal: Applied Economics
Pages: 6235-6263
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1616066
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616066
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6235-6263




Template-Type: ReDIF-Article 1.0
Author-Name: Ji Wu
Author-X-Name-First: Ji
Author-X-Name-Last: Wu
Author-Name: Eze Peter Chimezie
Author-X-Name-First: Eze Peter
Author-X-Name-Last: Chimezie
Author-Name: Gilbert V. Nartea
Author-X-Name-First: Gilbert V.
Author-X-Name-Last: Nartea
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Title: Extreme returns and the idiosyncratic volatility puzzle: African evidence
Abstract: 
 We examine the cross-sectional relationship between the expected stock return and both the maximum daily return (MAX) and the idiosyncratic volatility (IVOL) in the five largest emerging African stock markets over the period from 2001 to 2015. First, we find that there is a robust and significantly negative MAX effect in the pooled African stock markets. Second, though we initially document a negative IVOL effect, it disappears after controlling for MAX. Finally, the negative MAX effect is only significant in the small-SIZE, high-illiquidity and high-skewness portfolios. Our results suggest risk-seeking behaviour among African investors similar to that in other parts of the world.
Journal: Applied Economics
Pages: 6264-6279
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1631442
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631442
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6264-6279




Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Feng
Author-X-Name-First: Qiang
Author-X-Name-Last: Feng
Author-Name: Jing Feng
Author-X-Name-First: Jing
Author-X-Name-Last: Feng
Author-Name: Ming Li
Author-X-Name-First: Ming
Author-X-Name-Last: Li
Author-Name: Yang Li
Author-X-Name-First: Yang
Author-X-Name-Last: Li
Title: Are contingent instructors better teachers: evidence from a Chinese university
Abstract: 
 This paper evaluates the effects of contingent instructors on education outcomes in the context of higher education in developing countries. Exploiting the features of Chinese higher education system, we are able to exclude the confounding effects of student selection and heterogeneous marking standards. Although students of contingent instructors appear to perform as well as their fellow students taught by full-time instructors, we find the evidence that contingent instructors utilize lower marking standards, resulting an inflation of the scores of their students, which masks the negative impacts of their teaching. Our results suggest that contingent instructors have a significantly negative impact on education outcomes. While exposure to contingent instructors may affect the probability of students taking more challenging courses in the following term, the longer-term impacts on education outcomes are negligible.
Journal: Applied Economics
Pages: 6280-6285
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1667476
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1667476
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6280-6285




Template-Type: ReDIF-Article 1.0
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Chaker Aloui
Author-X-Name-First: Chaker
Author-X-Name-Last: Aloui
Author-Name: Rania Jammazi
Author-X-Name-First: Rania
Author-X-Name-Last: Jammazi
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Title: Are Islamic bonds a good safe haven for stocks? Implications for portfolio management in a time-varying regime-switching copula framework
Abstract: 
 We examine the portfolio implications of adding the Islamic bond index (Sukuk) to a benchmark portfolio of Islamic stocks. The daily data of the Islamic bond index; the Islamic stock markets of the world, Canada, Japan, USA, UK and Islamic financial stocks are used for the period of 1 October 2005 through 30 April 2015. We examine the presence of structural breaks via the Iterated Cumulative Sum of Square (ICSS) algorithm, which clearly indicate that Islamic stock-bond returns have several structural breaks over the sample period; hence, the dependence among the markets may have a regime-switching pattern. We rely on the flexible properties of the ARMA-FIGARCH models with the skew-t distribution to model the marginal distributions of the series. Next, a set of static, time-varying and regime-switching time-varying copula models are applied to encircle the dependence dynamics. Finally, using different portfolio strategies, we access the portfolio implications of a multi-asset portfolio. Overall, the results provide evidence that the Islamic bond index can be included as a potential hedge/safe haven in benchmark stock portfolios.
Journal: Applied Economics
Pages: 219-238
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494376
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494376
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:219-238




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: James W. Saunoris
Author-X-Name-First: James W.
Author-X-Name-Last: Saunoris
Title: Does variability in crimes affect other crimes? The case of international corruption and shadow economy
Abstract: 
 Using data on more than 125 countries, this article attempts to add to the research linking corruption and the shadow economy by examining the effect of variability (uncertainty) in one white-collar crime on the prevalence of the other. Measuring variability alternately via a 3-year and a 5-year moving SD, the following main points emerge from the econometric analysis that accounts for bi-directional causality. First, with shadow economy as the dependent variable, shadow economy and corruption are substitutes, and greater variability in corruption increases the shadow economy. Second, the effect of corruption variability is stronger in the short run than the long run. Third, with corruption as the dependent variable, corruption and shadow economy again turn out to be substitutes. Fourth, the effect of shadow economy variability has no statistically significant influence on corruption. Fifth, the findings are somewhat sensitive to an alternate measure of the shadow economy that covers a longer period.
Journal: Applied Economics
Pages: 239-258
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494378
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494378
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:239-258




Template-Type: ReDIF-Article 1.0
Author-Name: Sujay Mukhoti
Author-X-Name-First: Sujay
Author-X-Name-Last: Mukhoti
Author-Name: Pritam Ranjan
Author-X-Name-First: Pritam
Author-X-Name-Last: Ranjan
Title: A new class of discrete-time stochastic volatility model with correlated errors
Abstract: 
 Returns of risky assets and their time-dependent volatility are often jointly modelled by stochastic volatility models (SVMs). Over the last few decades, several SVMs have been proposed to adequately capture the features of the relationship between the return and its volatility. The earliest SVM considers a hierarchical model, with current return as a function of the current latent volatility, which is further modelled as an auto-regressive process. In an attempt to make SVM more appropriate for complex realistic market behaviour, leverage parameter was introduced, which however led to violation of martingale difference property of the risky part of return (a necessary mean-zero condition that prevents arbitrage opportunities under mild regularity conditions). Subsequently, alternative SVMs had been developed and are currently in use. In this article, we propose mean-corrections for several generalizations of SVM with leverage that capture the complex market behaviour as well as satisfy martingale difference property of returns. We also establish a few theoretical results to characterize the key desirable features of these models, and present comparison with other popular competitors. Furthermore, three real-life examples (CITI bank stock price, euro&#x2013;USD rate and S&amp;P 500 index returns) have been used to demonstrate the performance of this new class of SVMs.
Journal: Applied Economics
Pages: 259-277
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494804
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494804
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:259-277




Template-Type: ReDIF-Article 1.0
Author-Name: Woon Wong
Author-X-Name-First: Woon
Author-X-Name-Last: Wong
Author-Name: Iris Biefang-Frisancho Mariscal
Author-X-Name-First: Iris Biefang-Frisancho
Author-X-Name-Last: Mariscal
Author-Name: Peter Howells
Author-X-Name-First: Peter
Author-X-Name-Last: Howells
Title: Liquidity and credit risks in the UK&#x2019;s financial crisis: how &#x2018;quantitative easing&#x2019; changed the relationship
Abstract: 
 This article investigates the relationship between credit and liquidity risk components in the UK interbank spread during the recent financial crisis and sheds light on the transmission mechanism of the quantitative easing (QE) carried out by the Bank of England (BoE) on short-term interest rates. Specifically, we find that prior to the bank&#x2019;s intervention counterparty risk was a major factor in the widening of the spread and also caused a rise in liquidity risk. However, this relationship was reversed during the period when QE was implemented. Using the accumulated value of asset purchases as a proxy for the central bank&#x2019;s liquidity provisions, we provide evidence that the QE operations were successful in reducing liquidity premia and ultimately, and indirectly, credit risk. We also find evidence that suggests liquidity schemes provided by other central banks and international market sentiment contributed to the reduction of interbank spread.
Journal: Applied Economics
Pages: 278-287
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494814
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494814
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:278-287




Template-Type: ReDIF-Article 1.0
Author-Name: Di Zeng
Author-X-Name-First: Di
Author-X-Name-Last: Zeng
Author-Name: Michael R. Thomsen
Author-X-Name-First: Michael R.
Author-X-Name-Last: Thomsen
Author-Name: Rodolfo M. Nayga
Author-X-Name-First: Rodolfo M.
Author-X-Name-Last: Nayga
Author-Name: Heather L. Rouse
Author-X-Name-First: Heather L.
Author-X-Name-Last: Rouse
Title: Neighbourhood convenience stores and childhood weight outcomes: an instrumental variable approach
Abstract: 
 The association between the commercial food environment and childhood obesity is increasingly assessed in the literature, but little is known about the role of convenience stores, an important food retail format worldwide. This study helps bridge the gap using individual-level data containing measured body mass index (BMI) for public schoolchildren and geo-coded residence and store locations in Arkansas, United States. The distance from residence to the nearest highway is employed to instrument neighbourhood convenience store exposure, while controlling for possible confounding effects of other food stores. We find that exposure to at least one convenience store exposure is associated with a BMI z-score increase of 0.162 SD, and exposure to each additional convenience store is associated with a BMI increase of 0.071 SD. There is no evidence for a larger association among children from low-income families or those with limited access to healthy foods.
Journal: Applied Economics
Pages: 288-302
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495819
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495819
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:288-302




Template-Type: ReDIF-Article 1.0
Author-Name: Fab&#xED;ola Zambom-Ferraresi
Author-X-Name-First: Fab&#xED;ola
Author-X-Name-Last: Zambom-Ferraresi
Author-Name: Bel&#xE9;n Ir&#xE1;izoz
Author-X-Name-First: Bel&#xE9;n
Author-X-Name-Last: Ir&#xE1;izoz
Author-Name: Fernando Lera-L&#xF3;pez
Author-X-Name-First: Fernando
Author-X-Name-Last: Lera-L&#xF3;pez
Title: Are football managers as efficient as coaches? Performance analysis with  and  inputs in the Premier league
Abstract: 
 There is a controversy on sport performance literature about what type of inputs might explain more deeply the performance of sports clubs (inputs specification controversy). By one side, several papers have analysed sports teams&#x2019; performance using the match-related statistics or wages as inputs, well-known as ex post inputs. By other side, some authors have criticized the use of these ex post inputs, and recommend the use of ex ante inputs, as the market value of the players. We have analysed the performance of football teams estimating technical efficiency with three different inputs specification. The methodologies employed were data envelopment analysis (DEA) and a bootstrapped DEA. Our sample is composed by English Premier League football clubs, during three seasons (2012/13&#x2013;2014/15). The DEA results indicate that the correlation between the three models is positive and significant. The DEA-bootstrapped results help to restate the robustness of the estimations and endorsed the inputs choices. The correlations of the estimations with market value and match-related statistics are the most striking (90% and 94%, DEA and bootstrapped DEA), which indicate that the existent discussion related to the use of match-related statistics as input is unjustified, because it does not affect significantly the efficiency estimations.
Journal: Applied Economics
Pages: 303-314
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495821
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495821
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:303-314




Template-Type: ReDIF-Article 1.0
Author-Name: J. Fitzgerald
Author-X-Name-First: J.
Author-X-Name-Last: Fitzgerald
Author-Name: J. Ryan
Author-X-Name-First: J.
Author-X-Name-Last: Ryan
Title: The impact of firm characteristics on speed of adjustment to target leverage: a UK study
Abstract: 
 Responding to the need to investigate heterogeneity in the speed of adjustment (SOA) to target leverage in a manner that reflects the fractional nature of leverage, we estimate SOA across sub-samples of UK firms using the Dynamic Panel Fractional (DPF) estimator. Using firm characteristics to identify firms subject to varying costs of deviation from and adjustment to target leverage, we find significant evidence of heterogeneity in the speeds at which UK firms adjust to target leverage. Our results show that small, high growth and low dividend paying firms adjust to target leverage faster than their large, low growth and high dividend paying counterparts. We also find some evidence to suggest openly held firms adjust faster than closely held firms, though our results are not robust to the categorizing criterion employed or target leverage specification.
Journal: Applied Economics
Pages: 315-327
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495822
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495822
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:315-327




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed M. Khalid
Author-X-Name-First: Ahmed M.
Author-X-Name-Last: Khalid
Author-Name: Antonio Marasco
Author-X-Name-First: Antonio
Author-X-Name-Last: Marasco
Title: Do channels of financial integration matter for FDI’s impact on growth? Empirical evidence using a panel
Abstract: 
 This paper adds to the debate on the relationship between foreign direct investment (FDI) and economic growth which suggest that the link between FDI and economic growth is rather the consequence of both FDI and growth responding endogenously to economic integration. We investigate if the impact of FDI on growth is dependent on the channel of integration used to attract FDI. We use four different indexes of economic integration including Trade Openness, Chinn-Ito, and KOF and our newly constructed index of financial integration. We employ these four indexes to investigate the role played by economic integration in linking FDI and growth. We use a panel consisting of 134 developing countries and data spanning the period 1989-2017 estimated using the generalized method of moments (GMM) technique. The results show that FDI is an important determinant of growth. The results also suggest that at least some of the integration variables do matter and work as channels to attract FDI leading to growth. However, after stratifying countries by income level, we also find that integration matters mainly for high income countries. Integration variables for other income groups do not show much significance. These are interesting results and may have important policy implications.
Journal: Applied Economics
Pages: 4025-4045
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588945
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588945
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4025-4045




Template-Type: ReDIF-Article 1.0
Author-Name: Parvaneh Shahnoori
Author-X-Name-First: Parvaneh
Author-X-Name-Last: Shahnoori
Author-Name: Glenn P. Jenkins
Author-X-Name-First: Glenn P.
Author-X-Name-Last: Jenkins
Title: The value of online banking to small and medium-sized enterprises: evidence from firms operating in the uae free trade zones
Abstract: 
 This study estimates the willingness to pay of small and medium-sized enterprises (SMEs) for a business online banking services. The estimation utilizes a contingent valuation method employing data from 400 SMEs in the United Arab Emirates free zones. An interval regression model is used to identify company characteristics affecting WTP. The results indicate an average WTP for online banking of $518.50 per month. Firms engaging in international trade value these services at least 10% more than those with only domestic operations. Other variables that significantly affect WTP include number of employees and the transportation cost of using traditional branch banking.
Journal: Applied Economics
Pages: 4046-4055
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588948
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588948
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4046-4055




Template-Type: ReDIF-Article 1.0
Author-Name: Shashika D. Rathnayaka
Author-X-Name-First: Shashika D.
Author-X-Name-Last: Rathnayaka
Author-Name: E. A. Selva Selvanathan
Author-X-Name-First: E. A. Selva
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: Consumption patterns in Sri Lanka: a decomposition analysis
Abstract: 
 Knowing consumer reaction to changes in prices and income is important in formulating microeconomic policies, such as public utility prices and commodity taxation. This paper analyses the consumption patterns of consumer goods grouped into eight broad commodities in Sri Lanka during the period 1975–2016, using a system-wide framework. The analysis indicates that Sri Lankan consumers allocate more than half of their income to food and nearly four fifths of their income to food, housing, and transport combined. The estimated income and own-price elasticities reveal that food, housing, medical care, and transport are necessities; clothing, durables and recreation are luxuries; and demand for all commodities is price inelastic except for recreation. To investigate the consumption growth pattern, we decomposed the growth in consumption and change in budget shares of the eight commodities into income, relative price, and change in taste. We also simulated per capita consumption expenditure of the eight commodities under various policy scenarios and found that income growth has played a significant role in Sri Lankan consumption patterns.
Journal: Applied Economics
Pages: 4056-4072
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588950
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588950
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4056-4072




Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Satish Kumar
Author-X-Name-First: Satish
Author-X-Name-Last: Kumar
Author-Name: Rajesh Pathak
Author-X-Name-First: Rajesh
Author-X-Name-Last: Pathak
Title: Modelling the dynamics of Bitcoin and Litecoin: GARCH versus stochastic volatility models
Abstract: 
 We examine and compare a large number of generalized autoregressive conditional heteroskedastic (GARCH) and stochastic volatility (SV) models using series of Bitcoin and Litecoin price returns to assess the model fit for dynamics of these cryptocurrency price returns series. The various models examined include the standard GARCH(1,1) and SV with an AR(1) log-volatility process, as well as more flexible models with jumps, volatility in mean, leverage effects, t-distributed and moving average innovations. We report that the best model for Bitcoin is SV-t while it is GARCH-t for Litecoin. Overall, the t-class of models performs better than other classes for both cryptocurrencies. For Bitcoin, the SV models consistently outperform the GARCH models and the same holds true for Litecoin in most cases. Finally, the comparison of GARCH models with GARCH-GJR models reveals that the leverage effect is not significant for cryptocurrencies, suggesting that these do not behave like stock prices.
Journal: Applied Economics
Pages: 4073-4082
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588951
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588951
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4073-4082




Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Ayala
Author-X-Name-First: Astrid
Author-X-Name-Last: Ayala
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Title: Score-driven models of stochastic seasonality in location and scale: an application case study of the Indian rupee to USD exchange rate
Abstract: 
 We estimate the stochastic seasonality of the Indian rupee (INR) to United States dollar (USD) exchange rate by using new dynamic conditional score (DCS) specifications. We use the DCS-Skew-Gen-$$t$$t
 (DCS-skewed generalized t distribution) and DCS-NIG (DCS-normal-inverse Gaussian distribution) models, which are alternatives to the DCS-$$t$$t
 (DCS-Student’s $$t$$t
-distribution) and DCS-EGB2 (DCS-exponential generalized beta distribution of the second kind) models from the literature. DCS models are robust to outliers, and such models effectively disentangle the local level, seasonality and irregular components. For the latter, we apply DCS-EGARCH (DCS-exponential generalized autoregressive conditional heteroscedasticity) scale dynamics, and we use new DCS models with seasonal volatility. We use INR/USD data for the period of 1 January 1982 to 7 July 2017. We find that the DCS-Skew-Gen-$$t$$t
 and DCS-NIG models are superior to the DCS-$$t$$t
 and DCS-EGB2 models, respectively. The amplitude of the INR/USD seasonality is relatively high during the last decade of the sample. We explain this by using the currency movements that are related to increased seasonal exports and imports of India. We show the robustness of our results for different exchange rate regimes: (i) pegged exchange rate regime period (until February 1993); (ii) liberalized exchange rate management system period (since March 1993).
Journal: Applied Economics
Pages: 4083-4103
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588952
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588952
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4083-4103




Template-Type: ReDIF-Article 1.0
Author-Name: Hussein Ali Abdoh
Author-X-Name-First: Hussein Ali
Author-X-Name-Last: Abdoh
Title: Product market competition and productivity shocks
Abstract: 
 I investigate the interaction effects of competition and productivity shocks on stocks’ earnings and returns. I find that the sensitivities of earnings and returns to productivity shocks are negatively associated with competition intensity. I also find that the excess returns of productivity shocks-sorted portfolios are lower when competition intensity is high, even after controlling for known return predictors. Overall, the empirical evidence shows firms are less exposed to productivity shocks when competition is high. As such, this study provides a possible mechanism through which the structure of product markets affects stock returns.
Journal: Applied Economics
Pages: 4104-4115
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588953
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588953
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4104-4115




Template-Type: ReDIF-Article 1.0
Author-Name: Jani Bekő
Author-X-Name-First: Jani
Author-X-Name-Last: Bekő
Author-Name: Timotej Jagrič
Author-X-Name-First: Timotej
Author-X-Name-Last: Jagrič
Author-Name: Dušan Fister
Author-X-Name-First: Dušan
Author-X-Name-Last: Fister
Author-Name: Christine Brown
Author-X-Name-First: Christine
Author-X-Name-Last: Brown
Author-Name: Peter Beznec
Author-X-Name-First: Peter
Author-X-Name-Last: Beznec
Author-Name: Hans Kluge
Author-X-Name-First: Hans
Author-X-Name-Last: Kluge
Author-Name: Tammy Boyce
Author-X-Name-First: Tammy
Author-X-Name-Last: Boyce
Title: The economic effects of health care systems on national economies: an input-output analysis of Slovenia
Abstract: 
 This paper estimates the size of the economic impact generated by the Slovenian health care sector on the national economy in the 2009–2014 period. The study separately calculates output, income, employment, value-added and import multipliers for the Slovenian health care sector based on input-output analysis covering 49 sectors. Initially, values of simple output multipliers for all years are estimated. When the re-circulation of final demand through households is added to the direct and indirect economic effects, the values of total output multipliers considerably exceeds 2. The results suggest that an additional million EUR of final demand in the health care sector will, based on different scenarios, increase the total employment by 20 to 30 units. Moreover, the type II employment multipliers imply that under the best-case scenario one employee in the health care sector creates an additional 0.7 unit of employment in remaining structures of the observed economy. Stability evaluation of the derived multipliers suggests that the domestic health care sector may reduce volatilities in production, income and employment and consequently act as an important shock absorber in the economy.
Journal: Applied Economics
Pages: 4116-4126
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588955
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588955
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4116-4126




Template-Type: ReDIF-Article 1.0
Author-Name: Hyo-Jin Kim
Author-X-Name-First: Hyo-Jin
Author-X-Name-Last: Kim
Author-Name: Hye-Jeong Lee
Author-X-Name-First: Hye-Jeong
Author-X-Name-Last: Lee
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Title: Public willingness to pay for endocrine disrupting chemicals-free labelling policy in Korea
Abstract: 
 As public interest in health and safety grows, endocrine disrupting chemicals (EDC) have become an inevitable problem in society. One way to reduce the social cost of exposure to EDC is to grant a label certification to eco-friendly products that do not release EDC. The Korean government is considering introducing an EDC-free labelling policy. Therefore, our article tries to examine the public willingness to pay (WTP) for implementing the EDC-free labelling policy in Korea. For this purpose, a contingent valuation survey of 1000 Korean consumers was conducted in 2016. We used a one-and-one-half-bounded dichotomous choice question to elicit the WTP responses from the respondents. The mean of household WTP for the EDC-free labelling policy implementation is estimated to be KRW 2266 (USD 2.05) per year. When we expand the value to the whole country, it amounts to KRW 42.9 billion (USD 38.8 million) per year. These values are statistically meaningful at the 1% level and imply that the EDC-free labelling policy contributes to households’ utility and should be implemented immediately.
Journal: Applied Economics
Pages: 131-140
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494803
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494803
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:131-140




Template-Type: ReDIF-Article 1.0
Author-Name: Berthold Burth
Author-X-Name-First: Berthold
Author-X-Name-Last: Burth
Author-Name: Solveig Reißig-Thust
Author-X-Name-First: Solveig
Author-X-Name-Last: Reißig-Thust
Title: Private equity deal success and pre-acquisition determinants – empirical evidence from Germany
Abstract: 
 Shortly after a fall-back linked to recent financial crises, private equity investing has been undergoing a strong revival, especially in Germany. In a country known for the large number of small- and medium-sized companies, private equity investors can profit from a large choice of potential targets. Researchers have been broadly studying the field of private equity for many years, especially exploring post-investment value creation. But most articles missed to address the importance of pre-acquisition determinants such as target characteristics. Under these circumstances, this study focuses on exploring the relationship between pre-acquisition target characteristics and deal performance by analysing a sample of 125 transactions in Germany using an ordinal logistic regression analysis.The findings suggest that asset lightness, management experience and the healthcare industry are positively linked to the deal success by increasing the likelihood of achieving a higher return category.This implies that private equity investors active in Germany could outperform if they set according to investment preferences. Similarly, investors are likely to get a higher return from general partners who invest in companies presenting such characteristics.
Journal: Applied Economics
Pages: 141-154
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494806
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494806
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:141-154




Template-Type: ReDIF-Article 1.0
Author-Name: Xili Ma
Author-X-Name-First: Xili
Author-X-Name-Last: Ma
Author-Name: Huiqing Wang
Author-X-Name-First: Huiqing
Author-X-Name-Last: Wang
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: The role of emissions trading mechanisms and technological progress in achieving China’s regional clean air target: a CGE analysis
Abstract: 
 In this article, a multi-regional dynamic computable general equilibrium model is built to study the impacts of $${\rm{S}}{O_2}$$SO2 emissions trading and technological progress on the economy under the premise of achieving the targeted air pollution control objectives. The results show that, if air quality in the South and the Pearl River Delta reaches the national standard of level I, and other regions reach Level II by 2030 via implementing an emissions trading mechanism, the industry structure will be improved and $${\rm{C}}{O_2}$$CO2 emissions will drop 30–40% nationwide compared to the baseline scenario.
Journal: Applied Economics
Pages: 155-169
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494807
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494807
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:155-169




Template-Type: ReDIF-Article 1.0
Author-Name: Isaac Ahimbisibwe
Author-X-Name-First: Isaac
Author-X-Name-Last: Ahimbisibwe
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: The contribution of millennium development goals towards improvement in major development indicators, 1990–2015
Abstract: 
 This study explores the contribution of Millennium Development Goals (MDGs) towards improvement in seven major development indicators during 1990-2015. The improvement in each indicator is decomposed into two parts. The first is the improvement that is likely to have occurred without the MDGs and is calculated by extrapolating to the entire period 1990-2015 the pre-MDG trend of 1990-2000. The second part is the improvement that may be attributed to the MDGs and is calculated as the actual improvement during 1990-2015 minus the part based on pre-MDG factors. The contributions are estimated for the world and six geographical regions. Apart from the huge diversity across the indicators and the regions, the exercise indicates two main points. First, MDGs did make a positive contribution to the improvement in almost all cases and it is not true that the MDGs contributed little. Second, however, the improvement attributable to the pre-MDG factors dominates contribution of the MDGs. Relative to the Sustainable Development Goals (SDGs), the study indicates that attainment of the SDG targets for access to safe water and under-5 mortality at the global level appears likely, but attainment of the targets for poverty rate, maternal mortality, and access to sanitation seems unlikely.Abbreviation EAP: East Asia & Pacific; ECA: Europe & Central Asia; LAC: Latin America & Caribbean; MENA: Middle East & North Africa; SA: South Asia; SSA: Sub-Saharan Africa; ICP: International Comparison Program; MDGs: Millennium Development Goals; SDGs: Sustainable Development Goals; UN: United Nations; UNICEF: United Nations Children’s Fund; WDI: World Development Indicators
Journal: Applied Economics
Pages: 170-180
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494808
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494808
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:170-180




Template-Type: ReDIF-Article 1.0
Author-Name: Joanie Buckley
Author-X-Name-First: Joanie
Author-X-Name-Last: Buckley
Author-Name: Russell Kashian
Author-X-Name-First: Russell
Author-X-Name-Last: Kashian
Title: Ownership effects among Native American banks, 2001-2016
Abstract: 
 Minority Depository Institutions (MDIs), including Native American Banks (NatBs), play an integral role in providing financial services to the under-served. NatBs are split between those that are Tribal owned and those owned by individual Native Americans as private banks. This research explores differences between the two, other MDIs and comparable mainstream banks, using data from 2001 to 2016. Tribal NatBs are hypothesized to emphasize community development for the under-served over profit maximization, and to take on high levels of risk. Testing uses comparisons of population means and regressions, and the overall pattern of results and limited regression findings support those possibilities.
Journal: Applied Economics
Pages: 181-195
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494810
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494810
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:181-195




Template-Type: ReDIF-Article 1.0
Author-Name: Cuixia Jiang
Author-X-Name-First: Cuixia
Author-X-Name-Last: Jiang
Author-Name: Xiaoyi Ding
Author-X-Name-First: Xiaoyi
Author-X-Name-Last: Ding
Author-Name: Qifa Xu
Author-X-Name-First: Qifa
Author-X-Name-Last: Xu
Author-Name: Xi Liu
Author-X-Name-First: Xi
Author-X-Name-Last: Liu
Author-Name: Yezheng Liu
Author-X-Name-First: Yezheng
Author-X-Name-Last: Liu
Title: Portfolio selection based on predictive joint return distribution
Abstract: 
 A predictive joint return distribution can provide more useful information than moment-based risk measures in portfolio selection. This article develops a D-vine copula-CAViaR method to estimate and predict the joint probability distribution of multiple financial returns. Furthermore, we construct a portfolio model via the generalized Omega ratio inferred from the predicted joint return distribution. The superiority of our method is illustrated through an empirical application on five international stock market indices.
Journal: Applied Economics
Pages: 196-206
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494812
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494812
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:196-206




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Raschke
Author-X-Name-First: Christian
Author-X-Name-Last: Raschke
Title: Unexpected windfalls, education, and mental health: evidence from lottery winners in Germany
Abstract: 
 This paper investigates the causal impact of large unexpected windfalls on individual mental health, physical health, as well as health behaviors. I use a large individual-level panel data set of lottery winners from Germany between the years 2000 and 2011 and observe lottery winners before and after winning a large lottery prize. Mental health declines immediately after winning a large lottery prize for individuals with low education and low levels of financial literacy. While these individuals report being happier after winning the lottery, evidence from commonly used SF-12 measures of mental health indicates that winners with low education experience increased role limitations due to emotional problems, are more anxious, and have less energy after their win. The impact on various measures of mental health is highly robust, statistically significant, economically significant, and persists for up to two years after the win. Unexpected windfalls have no impact on the mental health of individuals with high education or high financial literacy. Winning the lottery has no impact on individuals’ health behaviors such as smoking or alcohol consumption, and it has no impact on doctor visits, hospital stays, or illness-related work absences regardless of education level.
Journal: Applied Economics
Pages: 207-218
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494813
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494813
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:207-218




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Benlemlih
Author-X-Name-First: Mohammed
Author-X-Name-Last: Benlemlih
Author-Name: Jamil Jaballah
Author-X-Name-First: Jamil
Author-X-Name-Last: Jaballah
Author-Name: Jonathan Peillex
Author-X-Name-First: Jonathan
Author-X-Name-Last: Peillex
Title: Does it really pay to do better? Exploring the financial effects of changes in CSR ratings
Abstract: 
 Previous literature on the link between corporate social responsibility (CSR) and financial performance has focused mainly on the financial implications of a firm’s level of CSR without considering the potential effects on financial performance of variations in CSR rating. We try to fill this gap by studying whether variations in a firm’s CSR rating affect systematic risk, firm value, and portfolio performance. First, our results show that an increase in firms’ CSR efforts, as reflected by an increase in their CSR ratings, significantly reduces systematic risk. Second, a positive variation in CSR ratings significantly improves firm value. Finally, from a portfolio perspective, a strategy that consists of buying stocks that have experienced a CSR ratings increase and selling stocks that have experienced a CSR ratings decrease (or remain stable) leads to lower financial performance. Taken together, our findings provide new evidence and financial implications for firms and portfolio managers.
Journal: Applied Economics
Pages: 5464-5482
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1486997
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486997
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5464-5482




Template-Type: ReDIF-Article 1.0
Author-Name: María del Mar Miralles-Quiros
Author-X-Name-First: María del Mar
Author-X-Name-Last: Miralles-Quiros
Author-Name: José Luis Miralles-Quiros
Author-X-Name-First: José Luis
Author-X-Name-Last: Miralles-Quiros
Author-Name: Julio Daza-Izquierdo
Author-X-Name-First: Julio
Author-X-Name-Last: Daza-Izquierdo
Title: Growth, profits and foreign ownership in the Brazilian banking industry
Abstract: 
 The deregulation of the financial markets and their progressive globalization has favoured the internationalization of banking. Moreover, during the international financial crisis, the presence of foreign banks has increased in countries experiencing faster economic growth, such as Brazil. In this context, the aim of this study is to analyze the growth and profitability of the financial institutions in Brazil, taking into account the possible non-linearity of the relationship, the differences between Brazilian and foreign institutions and the effect of the crisis. Our results indicate that the entry of foreign institutions has a direct effect on the Brazilian banking industry.
Journal: Applied Economics
Pages: 5483-5494
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1486998
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486998
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5483-5494




Template-Type: ReDIF-Article 1.0
Author-Name: Natividad Blasco
Author-X-Name-First: Natividad
Author-X-Name-Last: Blasco
Author-Name: Pilar Corredor
Author-X-Name-First: Pilar
Author-X-Name-Last: Corredor
Author-Name: Elena Ferrer
Author-X-Name-First: Elena
Author-X-Name-Last: Ferrer
Title: Analysts herding: when does sentiment matter?
Abstract: 
 Herding among analysts emerges when analysts give priority to their peers’ opinions instead of their own beliefs or information. Some circumstances may enhance or restrain this type of behaviour. We postulate that market sentiment is one of them. This article analyses the effect that investor sentiment may have on analysts’ herding behaviour in the U.K. Our results suggest that ‘easy situations’ such as analysing easy-to-value securities and releasing optimistic information at times of high market sentiment clearly reduce herding practices, whereas herding clearly increases in difficult situations when analysts have to release negative information at moments of high investor sentiment.
Journal: Applied Economics
Pages: 5495-5509
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1486999
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486999
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5495-5509




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Reed Bergmann
Author-X-Name-First: Daniel Reed
Author-X-Name-Last: Bergmann
Author-Name: Jose Roberto Ferreira Savoia
Author-X-Name-First: Jose Roberto
Author-X-Name-Last: Ferreira Savoia
Author-Name: Claudio Felisoni de Angelo
Author-X-Name-First: Claudio
Author-X-Name-Last: Felisoni de Angelo
Author-Name: Eduardo Augusto do Rosário Contani
Author-X-Name-First: Eduardo Augusto do Rosário
Author-X-Name-Last: Contani
Author-Name: Fabiana Lopes da Silva
Author-X-Name-First: Fabiana Lopes da
Author-X-Name-Last: Silva
Title: Portfolio management with tail dependence
Abstract: 
 Many publications, that treated with Portfolio Management, were devastating for all asset allocation models in the context of portfolios. The elimination of extreme events (asymmetric or tail dependence) during the portfolio construction process can reduce the skills of asset managers to reduce risk through diversification. The copula theory allows us to calculate an alternative to measure the dependence of extreme events in assets through the index lower tail dependence. We check that the strategies with tail dependence overcame Talmud rule, the Markowitz model and the model of Tu and Zhou by simulating 1,000 portfolios with 3, 5, 10 and 20 randomly selected assets from DJIA for the period 03/1990 until 12/2016. We conclude that models of tail dependence and Markowitz had more performance ex-ante than Talmud and the Tu and Zhou model for portfolios with 3, 5, 10 and 20 assets. Tail dependence models overcome Markowitz, in terms of cumulative return, in over 60% of months considered in the analysis. The results indicate that the Talmud rule should be discarded in a context of constructing portfolios with individual stocks ahead strategies with tail dependence.
Journal: Applied Economics
Pages: 5510-5520
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1487000
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1487000
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5510-5520




Template-Type: ReDIF-Article 1.0
Author-Name: Simone Salotti
Author-X-Name-First: Simone
Author-X-Name-Last: Salotti
Author-Name: Carmine Trecroci
Author-X-Name-First: Carmine
Author-X-Name-Last: Trecroci
Title: Cross-country evidence on the distributional impact of fiscal policy
Abstract: 
 This article provides new evidence on the distributional effects of fiscal policy using data on a panel of OECD economies over the last four decades. We study how four measures of income inequality and poverty respond to several stock and flow variables accounting for fiscal actions. We find that increases in government debt and expenditure promote a less unequal distribution of income. We detect a significant distributional impact of education and social spending as well as of government consumption expenditure. We also investigate potential redistributive implications of large fiscal expansion and consolidation episodes finding no evidence of additional effects beyond those associated with conventional fiscal variables.Abbreviations: OECD: Organisation for Economic Co-operation and Development; GDP: Gross Domestic Product; G20: Group of 20 economies (forum of 19 dvanced and emerging countries plus the European Union); CGE: Computational General Equilibrium models; DSGE: Dynamic Stochastic General Equilibrium models; UN-WIDER: United Nations World Institute for Development Economics Research; SWIID: Standardized World Income Inequality Database; WDI: World Development Indicators; PPP: Purchasing-Power Parity; LIS: Luxembourg Income Database; GMM: Generalized Method of Moments; FE: Fixed Effects; RE: Random Effects; SE: Standard Errors; CPI: Consumer Price Index
Journal: Applied Economics
Pages: 5521-5542
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1487001
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1487001
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5521-5542




Template-Type: ReDIF-Article 1.0
Author-Name: J. F. M. De Jong
Author-X-Name-First: J. F. M.
Author-X-Name-Last: De Jong
Author-Name: M. Ferdinandusse
Author-X-Name-First: M.
Author-X-Name-Last: Ferdinandusse
Author-Name: J. Funda
Author-X-Name-First: J.
Author-X-Name-Last: Funda
Title: Public capital in the 21st century: as productive as ever?
Abstract: 
 The global financial crisis and the euro area sovereign debt crisis that followed induced a rapid deterioration in the fiscal positions of countries across the globe. In the ensuing fiscal adjustment process, public investments were severely reduced in many countries. How harmful is this for growth perspectives? Our main objective is to find out whether the importance of public capital for long run output growth has changed in recent years. To this end, we expand time series on public capital stocks for 20 OECD countries and estimate country-specific recursive vector autoregressive (VAR) models. Results show that the effect of public capital shocks on economic growth has not increased in general, although results differ widely between countries. This suggests that the current level of public investments generally does not pose an immediate threat to potential output. Of course, this could change if low investment levels are sustained for a long time.
Journal: Applied Economics
Pages: 5543-5560
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1487002
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1487002
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5543-5560




Template-Type: ReDIF-Article 1.0
Author-Name: Rüdiger Wapler
Author-X-Name-First: Rüdiger
Author-X-Name-Last: Wapler
Author-Name: Daniel Werner
Author-X-Name-First: Daniel
Author-X-Name-Last: Werner
Author-Name: Katja Wolf
Author-X-Name-First: Katja
Author-X-Name-Last: Wolf
Title: Active labour market policies in Germany: do regional labour markets benefit?
Abstract: 
 This article examines on a regional level whether active labour market policies (ALMP) improve the matching process. To take the fact of heterogeneous search effectiveness during programme participation into account, we distinguish between current and former programme participants. Our findings based on a regional augmented matching function show that higher search effectiveness due to ALMP is not outweighed by indirect effects on nonparticipants. The total number of matches in a region increases with a higher share of former programme participants among the jobseekers. However, these effects largely differ between programme types.Abbreviation OECD (Organisation for Economic Co-operation and Development)ALMP (active labour market policy)
Journal: Applied Economics
Pages: 5561-5578
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1487526
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1487526
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5561-5578




Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Ba Trung
Author-X-Name-First: Nguyen
Author-X-Name-Last: Ba Trung
Author-Name: Taise Kaizoji
Author-X-Name-First: Taise
Author-X-Name-Last: Kaizoji
Title: Investment climate and firm productivity: an application to Vietnamese manufacturing firms
Abstract: 
 The fundamental aspect of a national competitive advantage is a good investment climate. Understanding the role of the investment climate in generating firm productivity has received extensive attention by policymakers and economists in many countries. The article studies the effect of different dimensions of the investment climate on firm productivity. Using a large dataset of Vietnamese manufacturing firms, the article finds that deficiencies in the investment climate are prejudicial to firm productivity and competition. Furthermore, in examining the effect of corruption in association with the quality of the business environment, the study also investigates the possibility that corruption may compensate firms for a bad investment climate or at least may neutralize the negative impact of inefficient government regulations. In other words, corruption acts as ‘speed money’ to improve the efficacy of the provision of public services or provides leeway for entrepreneurs to bypass the inefficient regulations. This situation, however, is extremely harmful to the economy in the long run because it distorts the market and erodes the incentives for productive investments. Developing countries therefore need to put much more effort into institutional reforms, especially fighting corruption and efficiency in the provision of public goods and services.
Journal: Applied Economics
Pages: 4394-4409
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282148
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282148
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4394-4409




Template-Type: ReDIF-Article 1.0
Author-Name: Xinxin Jiang
Author-X-Name-First: Xinxin
Author-X-Name-Last: Jiang
Author-Name: Stanley Peterburgsky
Author-X-Name-First: Stanley
Author-X-Name-Last: Peterburgsky
Title: Investment performance of shorted leveraged ETF pairs
Abstract: 
 We analyze investment strategies involving triple-leveraged and inverse triple-leveraged ETF pairs by simulating daily returns over a 48-year period. Our results show that many such strategies significantly outperform the S&amp;P 500 on a risk-adjusted basis. For example, when shorting the bear triple-leveraged ETF and the bull triple-leveraged ETF in a 2:1 proportion (while going long Treasuries), we find that the average annual Sharpe ratio is more than four times higher than for the S&amp;P 500 and that the strategy outperforms the S&amp;P 500 in 43 of the 48 years. Our results are robust to variations in bear/bull proportions, rebalance thresholds, and underlying parameters.
Journal: Applied Economics
Pages: 4410-4427
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282149
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282149
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4410-4427




Template-Type: ReDIF-Article 1.0
Author-Name: Bernadetta Dwi Suatmi
Author-X-Name-First: Bernadetta Dwi
Author-X-Name-Last: Suatmi
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Trade liberalization and technical efficiency in the Indonesian chemicals industry
Abstract: 
 This article examines the impact of trade reform on technical efficiency on the Indonesian chemicals industry using firm-level panel data. The effects of trade reform on technical efficiency are analysed using a stochastic frontier approach. Two variables represent trade reform in this model: effective rate of protection (ERP) and import ratio (IMP). The findings of the present study suggest that both trade reform variables have significant effects on technical efficiency. The coefficient of ERP has a positive sign and is statistically significant, which means that an increase in ERP increases the inefficiency (or decreases the technical efficiency) of firms in the chemicals industry. The coefficient of IMP is negative and statistically significant, which represents the negative impact of IMP on technical inefficiency (or positive on technical efficiency). Thus, trade reform, a reduction in ERP or an increase in IMP, has an unambiguously positive effect on technical efficiency in the Indonesian chemicals industry.
Journal: Applied Economics
Pages: 4428-4439
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282150
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282150
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4428-4439




Template-Type: ReDIF-Article 1.0
Author-Name: Nada Ben Elhadj
Author-X-Name-First: Nada
Author-X-Name-Last: Ben Elhadj
Author-Name: Didier Laussel
Author-X-Name-First: Didier
Author-X-Name-Last: Laussel
Title: Low prices cum selective distribution versus high prices: how best to signal quality?
Abstract: 
 We investigate the best signalling strategy for a monopoly introducing a new product with unobservable quality when second-period sales are linked to first-period ones and the firm may tailor its distribution network to exclude some consumers. When producing a high quality product rather than a low quality one is relatively costly with respect to the increase in quality, optimal signalling is by price alone. But when the cost differential is lower, it will be optimal to set a low first-period price, not to serve all would-be consumers at this price (selective distribution) and raise the price afterwards. Paradoxically, this strategy allows a larger customer base to be reached than in the case of pure price signalling.
Journal: Applied Economics
Pages: 4440-4459
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284988
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284988
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4440-4459




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios P. Louzis
Author-X-Name-First: Dimitrios P.
Author-X-Name-Last: Louzis
Author-Name: Angelos T. Vouldis
Author-X-Name-First: Angelos T.
Author-X-Name-Last: Vouldis
Title: Profit strategy of Greek banks: cross-subsidization and diversification versus complementarity
Abstract: 
 This study analyses the profit strategy employed by banks in Greece using dynamic panel data techniques and a data set which includes proprietary supervisory data covering the whole Greek commercial banking system from 2004 to 2011. We provide evidence that banks use interest- and non-interest income (non-II) as substitutes rather than complements, with non-II representing an indirect competition instrument by the more efficient banks used in place of direct competition with their peers through prices on loans and deposits. This behaviour is explained by further decomposing the non-II into the relatively stable fees component and the volatile trading income. Moreover, we provide evidence that the net-interest income is primarily affected by the banks’ market power and their operating costs, while more efficient banks exploit their core deposit base to lever their non-II. Finally, macroeconomic developments affect both income components, which are found to be procyclical with respect to economic activity. In particular, the two income components are affected differently from inflation implying that non-II provides a natural hedge against adverse effects from deflation on interest income.
Journal: Applied Economics
Pages: 4460-4481
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284989
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284989
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4460-4481




Template-Type: ReDIF-Article 1.0
Author-Name: Tung Lam Dang
Author-X-Name-First: Tung Lam
Author-X-Name-Last: Dang
Author-Name: Thi Hong Hanh Huynh
Author-X-Name-First: Thi Hong Hanh
Author-X-Name-Last: Huynh
Author-Name: Manh Toan Nguyen
Author-X-Name-First: Manh Toan
Author-X-Name-Last: Nguyen
Author-Name: Thi Minh Hue Nguyen
Author-X-Name-First: Thi Minh Hue
Author-X-Name-Last: Nguyen
Title: The firm information environment and capital structure: international evidence
Abstract: 
 This article investigates the effect of the firm information environment, characterized by the analyst characteristics, on firms’ capital structure choices and whether this effect varies according to country-level institutional environments. Using a comprehensive international data set that covers 19 939 firms across 41 countries between 2000 and 2010, we document two key findings. First, firms with lower analyst coverage, higher forecast dispersion and higher forecast errors have higher leverage. Second, the effect of the firm information environment on corporate leverage is attenuated in countries with stronger governance mechanism and better information transparency. This result suggests that a firm’s information environment is an important factor influencing its capital structure decision and that country-level institutional environments matter to this effect.
Journal: Applied Economics
Pages: 4482-4500
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284991
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284991
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4482-4500




Template-Type: ReDIF-Article 1.0
Author-Name: Soon Suk Yoon
Author-X-Name-First: Soon Suk
Author-X-Name-Last: Yoon
Author-Name: Hyo Jin Kim
Author-X-Name-First: Hyo Jin
Author-X-Name-Last: Kim
Author-Name: Hongbok Lee
Author-X-Name-First: Hongbok
Author-X-Name-Last: Lee
Author-Name: Doug Waggle
Author-X-Name-First: Doug
Author-X-Name-Last: Waggle
Title: Financing preferences: evidence from the Korean market
Abstract: 
 We investigate the financing decisions of Korean firms during the period of 1996–2015. Korean firms follow a matching strategy for funding their cash needs. Cash inflows from investing activities are the primary source of funding for capital expenditures, and cash inflows from financing activities are the major means of covering cash outflows from financing activities. We also find that Korean firms’ financing practice of handling cash deficits can be described by the pecking order model modified and augmented by cash flow variables. Cash inflows from investing activities account for the major portion of financing to make up for cash deficits, followed by short- and long-term debt, and then equity financing.
Journal: Applied Economics
Pages: 4501-4520
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284993
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284993
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4501-4520




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Bastianin
Author-X-Name-First: Andrea
Author-X-Name-Last: Bastianin
Title: Robust measures of skewness and kurtosis for macroeconomic and financial time series
Abstract: 
 The sample skewness and kurtosis of macroeconomic and financial time series are routinely scrutinized in the early stages of model-building and are often the central topic of studies in economics and finance. Notwithstanding the availability of several robust estimators, most scholars in economics rely on method-of-moments estimation that is known to be very sensitive to outliers. We carry out an extensive Monte Carlo analysis to evaluate the bias and root mean squared error of 12 different estimators of skewness and kurtosis. We consider nine statistical distributions that approximate the range of data generating processes of many macroeconomic and financial time series. Both in independently and identically distributed samples and in data generating processes featuring serial correlation L-moments and trimmed L-moments estimators are particularly resistant to outliers and deliver improvements over standard as well as alternative robust estimators of skewness and kurtosis. The application to 128 macroeconomic and financial time series sourced from a large, monthly frequency, database (i.e. the FRED-MD of McCracken and Ng, 2016) confirms the findings of the simulation study.
Journal: Applied Economics
Pages: 637-670
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1640862
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640862
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:637-670




Template-Type: ReDIF-Article 1.0
Author-Name: Ernest Gyapong
Author-X-Name-First: Ernest
Author-X-Name-Last: Gyapong
Author-Name: Maithm M. R. Khaghaany
Author-X-Name-First: Maithm M. R.
Author-X-Name-Last: Khaghaany
Author-Name: Ammad Ahmed
Author-X-Name-First: Ammad
Author-X-Name-Last: Ahmed
Title: The asymmetric role of corporate governance in CEO pay determination: evidence from South Africa
Abstract: 
 Previous studies suggest that CEOs may be incentivised to pursue actions aimed at restoring equity when pay deviates from the predicted CEO labour market compensation rate. This study investigates the effect of corporate governance (CG) quality on CEO pay deviation in an emerging economy characterised by weaker external corporate regulatory environment. Using a unique hand-collected data of 185 South African listed firms over a six-year period, We document that whereas CG quality impacts negatively on total CEO pay deviation, this is only conspicuous when the CEO is overpaid. CG quality has no effect on CEO compensation when the CEO is underpaid. We find that CEO underpayment reduces firm value in poorly-governed firms. In contrast, CEO overpayment has no effect on firm value irrespective of the level of CG quality. The findings imply that recent CEO pay level agitations have resulted in the design of CG mechanisms that reduces the tendency of CEO pay to adjust upwards. The results are robust to alternative econometric techniques and endogeneity concerns.
Journal: Applied Economics
Pages: 671-693
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1645280
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645280
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:671-693




Template-Type: ReDIF-Article 1.0
Author-Name: Yosef Bonaparte
Author-X-Name-First: Yosef
Author-X-Name-Last: Bonaparte
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Author-Name: David Koslowsky
Author-X-Name-First: David
Author-X-Name-Last: Koslowsky
Title: Birth order and portfolio choice
Abstract: 
 This paper examines the impact of birth order on financial decision-making. In lieu of explanations such as dissimilar parental style across children with different birth orders (due to learning and experience) or the existence of sibling externalities commonly offered in the literature to explain the impact of birth order on financial decision-making, our key conjecture is that birth order influences a host of personality traits, including risk-taking behaviour, and thus financial decisions. Indeed, we find that only born males tolerate greater financial risks and exhibit higher propensity to participate in the stock market. Irrespective of their birth order, only born individuals are 4.7–13.7% more likely to participate in the stock market. Furthermore, we also find that only born males demonstrate more activity in the financial market (higher tendencies to trade assets). Collectively, our stylized results suggest that birth order can be used as a predictor of portfolio choice decisions.
Journal: Applied Economics
Pages: 694-709
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646886
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646886
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:694-709




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco M. Pedraja
Author-X-Name-First: Francisco M.
Author-X-Name-Last: Pedraja
Author-Name: Cristina Polo
Author-X-Name-First: Cristina
Author-X-Name-Last: Polo
Author-Name: Javier Suárez-Pandiello
Author-X-Name-First: Javier
Author-X-Name-Last: Suárez-Pandiello
Title: Evaluating fiscal effort in heterogeneous contexts using a conditional nonparametric frontier approach
Abstract: 
 The aim of this paper is the estimation of a measure of the fiscal effort made by certain countries taking into account the heterogeneous contexts in which they operate over a ten-year period (2002–2011). To do this, we adopt a conditional efficiency approach that allows for accounting for those different environments in the estimation efficiency measures that we interpret as relative measures of fiscal effort. The results show that many countries labelled as inefficient in an initial analysis without considering their context become efficient when contextual variables are taken into account. There is a rather pronounced upward trend in the evolution of the conditional efficiency scores over time, especially during the later years of the analysed period. Among contextual variables considered in our evaluation, the transparency index, the income equality index and the importance of taxable income derived from natural resources are the main factors affecting fiscal effort of countries.
Journal: Applied Economics
Pages: 710-725
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1647332
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1647332
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:710-725




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Author-Name: Yi Wang
Author-X-Name-First: Yi
Author-X-Name-Last: Wang
Author-Name: Peng Zhou
Author-X-Name-First: Peng
Author-X-Name-Last: Zhou
Title: Resolving the public-sector wage premium puzzle by indirect inference
Abstract: 
 This paper investigates the public-sector wage premium (PSWP) in the UK using a microfounded economic model and indirect inference (II). To answer the question whether there is public-sector wage premium, we ask an equivalent question – whether a model assuming perfect competition can explain the data. The neoclassical labour economic model is tested and estimated without introducing any ad hoc gap between the theoretical and empirical models. Popular econometric models are used as auxiliary models to summarise the data features, based on which we evaluate the distance between the observed data and the model-simulated data. We show that it is not the non-market factors, but the total costs and benefits of working in different sectors and so simple market forces, that create the public-sector wage premium. In other words, there is no inefficiency or unfairness in the labour market to justify government intervention. In addition, selection bias test can be incorporated into the indirect inference procedures in a straightforward way, and we find no evidence for it in the data.
Journal: Applied Economics
Pages: 726-741
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1648748
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1648748
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:726-741




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Rosas
Author-X-Name-First: Francisco
Author-X-Name-Last: Rosas
Author-Name: Santiago Acerenza
Author-X-Name-First: Santiago
Author-X-Name-Last: Acerenza
Author-Name: Peter F. Orazem
Author-X-Name-First: Peter F.
Author-X-Name-Last: Orazem
Title: Optimal pricing strategies for a cluster of goods: own- and cross-price effects with correlated tastes
Abstract: 
 Contingent valuation methods are used to identify observed and unobserved preferences of goods and services. We apply these methods, in the context of multivariate probit analysis, to compute willingness to pay for each product of a cluster of goods conditional on having purchased another offered good of the cluster. We also provide a derivation of compensated cross-price elasticities based on unobservable factors, proving to be convenient in situations where cross-prices are not part of the demand equations. As goods belonging to a cluster typically embed correlated taste, their pricing strategy should consider all offered goods simultaneously rather than individually. Therefore, we solve for the set of optimal prices of a social planner whose objective function weights both the producer’s revenues and the consumer’s joint latent utility. We show an application to collegiate sports events, but these methods can be extended in a straightforward fashion to other goods and services. Supplementary materials for this article are available online.Abbreviations: C30, Multiple or Simultaneous Equation Models, General; C35, Discrete Regression and Qualitative Choice Models; C40, Special Topics of Econometric and Statistical Methods; D12, Empirical Analysis of Consumer Economics; D40, Market Structure, Pricing, and Design; D60, Welfare Economics; Z20, Sport Economics
Journal: Applied Economics
Pages: 742-755
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659502
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659502
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:742-755




Template-Type: ReDIF-Article 1.0
Author-Name: Su-Yin Cheng
Author-X-Name-First: Su-Yin
Author-X-Name-Last: Cheng
Author-Name: Han Hou
Author-X-Name-First: Han
Author-X-Name-Last: Hou
Title: Do non-intermediation services tell us more in the finance–growth nexus?: causality evidence from eight OECD countries
Abstract: 
 This paper provides new evidence on a traditional finance–growth nexus through dividing financial services into financial intermediation and non-intermediation services and examining their relationships with economic growth. Applying time-series cointegration techniques and Granger causality tests for eight Organization for Economic Cooperation and Development (OECD) countries, reveals several results. First, there is a long-run equilibrium relationship among economic growth, intermediation activities, and non-intermediation activities in Austria, France, and Korea. Second, non-intermediation services impede long-run economic growth in Austria and France, whereas non-intermediation business and financial intermediation services accelerate Korea’s long-term growth. Third, weak exogeneity tests support long-run bi-directional causality and the supply-leading hypothesis in terms of the relationship between financial services and economic growth. Finally, the influences of intermediation and non-intermediation activities on economic growth vary across countries, financial services, and time periods, indicating that countries should adopt different financial services to enhance long- or short-term economic growth. This paper emphasizes the importance of non-intermediation activities in the growth process and in the development of intermediation services.
Journal: Applied Economics
Pages: 756-768
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659928
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659928
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:756-768




Template-Type: ReDIF-Article 1.0
Author-Name: Dror Parnes
Author-X-Name-First: Dror
Author-X-Name-Last: Parnes
Author-Name: Sagi Akron
Author-X-Name-First: Sagi
Author-X-Name-Last: Akron
Title: Rating the credit rating agencies
Abstract: 
 We offer herein several policy tools that can assist the new Office of Credit Ratings within the Securities and Exchange Commission in assessing the quality of past credit ratings and thus measuring the inclusive competency of credit rating agencies. We propose to weigh the degrees of accuracy, consistency and total synchronization between a tested sample of past ratings and a benchmark array of flawless ratings. We also discuss various techniques to handle major discrepancies between these two arrays of credit ratings. We further explain and demonstrate the importance of different sample sizes. In addition, we present a simple approach to estimate the probability of convergence between the two matched sets of ratings under specified governing thresholds. Lastly, we illustrate the bulk of the theory with a concise empirical investigation.
Journal: Applied Economics
Pages: 4799-4812
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164826
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164826
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4799-4812




Template-Type: ReDIF-Article 1.0
Author-Name: Son Nghiem
Author-X-Name-First: Son
Author-X-Name-Last: Nghiem
Author-Name: Rasheda Khanam
Author-X-Name-First: Rasheda
Author-X-Name-Last: Khanam
Title: Childhood obesity and the income gradient: evidence from Australia
Abstract: 
 This article examines the dynamic nature of human capital formation in the context of childhood obesity and the association of household income and childhood obesity in Australia using the first five waves of the Longitudinal Study of Australian Children. Our results show a strong evidence of dynamic nature of child obesity: the lag obesity is a significant and robust predictor of obesity in the current period. We also found that the main channel for childhood obesity is inter-generational trait: the probability of obesity in children born to an obese mother or father is 15% higher than that of other children. Other important determinants are lifestyle factors, including the consumption of drinks with a high sugar content and the amount of time watching TV. Income becomes an insignificant determinant of childhood obesity once we control for unobserved individual heterogeneity.
Journal: Applied Economics
Pages: 4813-4822
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164827
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164827
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4813-4822




Template-Type: ReDIF-Article 1.0
Author-Name: Misbah Tanveer Choudhry
Author-X-Name-First: Misbah Tanveer
Author-X-Name-Last: Choudhry
Author-Name: Enrico Marelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Marelli
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: Age dependency and labour productivity divergence
Abstract: 
 This study finds strong empirical evidence in favour of the hypothesis that the age composition of population matters for labour productivity growth. We applied the fixed effects panel model using data on a large number of countries over the period 1980–2010. Our results suggest that higher age dependency not only directly impacts negatively on labour productivity but also modifies the impact of other determinants of labour productivity. Child dependency has a more adverse effect on labour productivity than old age dependency. We specifically find that the marginal effects of gross capital formation, information and communication improvement, and labour market reforms are significant at lower levels of age dependency. However, the marginal effect of savings on labour productivity is high at a high level of age dependency. The impact of age dependency varies between developed and developing economies. Diversity in the size and nature of age dependency across regions and different income groups help to explain the labour productivity differential across them.
Journal: Applied Economics
Pages: 4823-4845
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167823
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167823
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4823-4845




Template-Type: ReDIF-Article 1.0
Author-Name: Thiago Carlomagno Carlo
Author-X-Name-First: Thiago Carlomagno
Author-X-Name-Last: Carlo
Author-Name: Emerson Fernandes Marçal
Author-X-Name-First: Emerson Fernandes
Author-X-Name-Last: Marçal
Title: Forecasting Brazilian inflation by its aggregate and disaggregated data: a test of predictive power by forecast horizon
Abstract: 
 This work aims to compare the forecast efficiency of different types of methodologies applied to Brazilian consumer inflation (Índice de Preços ao Consumidor Amplo; IPCA). We will compare forecasting models using disaggregated and aggregated data from IPCA over 12 months ahead. We used IPCA in a monthly basis, over the period between January 1996 and March 2012. Out-of-sample analysis will be made through the period of January 2008 to March 2012. The disaggregated models were estimated by Seasonal Autoregressive Integrated Moving Average (SARIMA) and will have different levels of disaggregation from IPCA as groups and items, as well as disaggregation with more economic sense used by Brazilian Central Bank as: (1) services, monitored prices, food and industrials and (2) durables, non-durables, semi-durables, services and monitored prices. Aggregated models will be estimated by time series techniques as SARIMA, state-space structural models and Markov-switching. The forecasting accuracy among models will be made by the selection model procedure known as Model Confidence Set developed by Peter Hansen, Asger Lunde and James Nason. We were able to find evidence of forecast accuracy gains in models using more disaggregated rather than aggregate data.
Journal: Applied Economics
Pages: 4846-4860
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167824
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167824
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4846-4860




Template-Type: ReDIF-Article 1.0
Author-Name: Md. Al Mamun
Author-X-Name-First: Md.
Author-X-Name-Last: Al Mamun
Author-Name: Kazi Sohag
Author-X-Name-First: Kazi
Author-X-Name-Last: Sohag
Author-Name: Nahla Samargandi
Author-X-Name-First: Nahla
Author-X-Name-Last: Samargandi
Author-Name: Farida Yasmeen
Author-X-Name-First: Farida
Author-X-Name-Last: Yasmeen
Title: Does remittance fuel labour productivity in Bangladesh? The application of an asymmetric non-linear ARDL approach
Abstract: 
 Bangladesh, a labour-abundant country, is finally learning to reap gains from her labour abundance. The historical under-optimized capital–labour ratio of Bangladesh is slowly moving towards its optimum as the migration of its labour force and consequent inflow of remittance strategically converts its abundant labour into capital. Though the fear that remittance as an alternative source of earning may result in Dutch disease for existing family members; annual data for 1982–2013 and through applying standard testing methodologies, our empirical findings suggest that such a fear is not valid since remittance flow significantly improves domestic labour productivity in Bangladesh in the long run.
Journal: Applied Economics
Pages: 4861-4877
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167825
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167825
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4861-4877




Template-Type: ReDIF-Article 1.0
Author-Name: Scott Deacle
Author-X-Name-First: Scott
Author-X-Name-Last: Deacle
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Title: Cost of debt and federal home loan bank funding at U.S. bank and thrift holding companies
Abstract: 
 We investigate the relationship between the cost of debt issued by bank holding companies (BHCs) and thrift holding companies (THCs) and their use of Federal Home Loan Bank (FHLB) advances. Cost of debt is used as a measure of bank riskiness for the first time in a FHLB study. A two-equation model of FHLB advances and cost of debt is estimated. Three main results are obtained. First, greater reliance on advances by BHCs and THCs is associated with lower cost of debt in the pre-crisis period, and more strongly so during the crisis, because granting of advances sends a positive signal to the market about FHLB’s support. Second, greater holding company (HC) cost of debt, as an explanatory variable, is associated with smaller advances as FHLBs restrict advances to riskier HCs. Third, we find no separate effect on the cost of debt from FHLB membership. Our results are robust to 3SLS estimation, used to address endogeneity, and to alternative model specifications. The negative association between cost of debt and advances suggests that BHCs and THCs do not use advances to make riskier loans and that FHLB policies and services have some risk-reducing effects which more than offset the effect of potential moral hazards.
Journal: Applied Economics
Pages: 4878-4893
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167826
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167826
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4878-4893




Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Rosário da Barrosa
Author-X-Name-First: Marcelo Rosário
Author-X-Name-Last: da Barrosa
Author-Name: Arthur Valle Salles
Author-X-Name-First: Arthur Valle
Author-X-Name-Last: Salles
Author-Name: Celma de Oliveira Ribeiro
Author-X-Name-First: Celma de Oliveira
Author-X-Name-Last: Ribeiro
Title: Portfolio optimization through Kriging methods
Abstract: 
 This article presents a new methodology for optimizing financial asset portfolios. The proposed methodology, based on the Kriging method, allows for approximating the risk surface – and thus the optimal solution to the problem – in a generalized fashion, relaxing every restrictive hypothesis inherent to the available methods and with the ability to estimate the error in the risk surface approximation. Illustratively, the proposed methodology is applied to the portfolio problem with the Variance, VaR and CVaR as objective functions. The results are compared to those obtained using the Khun–Tucker technique, for the former, and the Rockafellar method, for the latter.
Journal: Applied Economics
Pages: 4894-4905
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167827
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167827
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4894-4905




Template-Type: ReDIF-Article 1.0
Author-Name: Walter Briec
Author-X-Name-First: Walter
Author-X-Name-Last: Briec
Author-Name: Kristiaan Kerstens
Author-X-Name-First: Kristiaan
Author-X-Name-Last: Kerstens
Author-Name: Ignace Van de Woestyne
Author-X-Name-First: Ignace
Author-X-Name-Last: Van de Woestyne
Title: Hypercongestion in production correspondences: an empirical exploration
Abstract: 
 This empirical contribution reviews the rather limited existing literature measuring congestion in production. It first compares current ways to measure congestion using nonparametric specifications of technologies. In particular, it focuses on the magnitude and incidence of the congestion detected in empirical studies using traditional radial efficiency measures. Thereafter, it shows the limitations of this radial measurement and how alternative measurement schemes may reveal higher amounts of congestion. Then, the new, more general methodology of measuring S-congestion is presented. In particular, we first present a numerical example to illustrate the way the S-disposable technologies allow to capture more extreme forms of congestion by setting empirically determined upper bounds to the wasting of inputs. Then, an empirical illustration is presented based on an existing sample of data. A final section concludes.
Journal: Applied Economics
Pages: 2938-2956
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412080
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412080
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2938-2956




Template-Type: ReDIF-Article 1.0
Author-Name: J.D. Pitts
Author-X-Name-First: J.D.
Author-X-Name-Last: Pitts
Author-Name: B. Evans
Author-X-Name-First: B.
Author-X-Name-Last: Evans
Title: Evidence on the importance of cognitive ability tests for NFL quarterbacks: what are the relationships among Wonderlic scores, draft positions and NFL performance outcomes?
Abstract: 
 Employing data on National Football League (NFL) quarterbacks drafted between 2002 and 2012, the authors consider whether factors correlated with a quarterback being more productive in the NFL are the same factors that correlate with an improved draft position. In particular, the authors consider the relevance of scores on the Wonderlic test. Contrary to all prior literature on the subject, the authors find that performance on the Wonderlic test is positively correlated with NFL performance. However, the authors find no clear evidence that Wonderlic scores are correlated with draft position. Beyond this primary finding, the authors reveal many other interesting results that should help researchers better understand a quarterback’s progression from college to the NFL.
Journal: Applied Economics
Pages: 2957-2966
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412081
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412081
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2957-2966




Template-Type: ReDIF-Article 1.0
Author-Name: María L. Gallén
Author-X-Name-First: María L.
Author-X-Name-Last: Gallén
Author-Name: Carlos Peraita
Author-X-Name-First: Carlos
Author-X-Name-Last: Peraita
Title: The effects of national culture on corporate social responsibility disclosure: a cross-country comparison
Abstract: 
 This article presents a cross-country analysis of the influence of national culture on corporate social responsibility (CSR) disclosure. We analyse the relationship between the Hofstede’s cultural dimensions and the sustainability disclosure with the GDP per capita (GDPPC) of 44 countries, using panel data with information based on the Global Reporting Initiative guidelines. The governance effectiveness and the foreign direct investment are also included in the analysis. The results show that in countries with higher GDPPC, the CSR disclosure is negatively related to individualism and masculinity and positively related to uncertainty avoidance and indulgence. When focusing in countries with lower GDPPC, the results suggest that CSR disclosure is negatively related to power distance and positively related to uncertainty avoidance. Moreover, five of the six Hofstede’s cultural dimensions negatively affect sustainability disclosure in countries with middle GDPPC.
Journal: Applied Economics
Pages: 2967-2979
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412082
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412082
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2967-2979




Template-Type: ReDIF-Article 1.0
Author-Name: Sophie Clot
Author-X-Name-First: Sophie
Author-X-Name-Last: Clot
Author-Name: Gilles Grolleau
Author-X-Name-First: Gilles
Author-X-Name-Last: Grolleau
Author-Name: Lisette Ibanez
Author-X-Name-First: Lisette
Author-X-Name-Last: Ibanez
Title: Moral self-licencing and social dilemmas: an experimental analysis from a taking game in Madagascar
Abstract: 
 This article explores whether previous good deeds may license antisocial behaviour, such as appropriating a social surplus for private benefits, in a developing country context, namely Madagascar. We design a two-step framed experiment, with one control treatment (a neutral task) and three test treatments (tasks enabling subjects to earn moral credits in three different ways), followed by a taking game in which subjects are given the opportunity to take an amount from a fund allocated to their University. On average, we find that participants in the three licencing conditions appropriate more than those in the control group and that further differences emerge according to the way the moral credits have been earned.
Journal: Applied Economics
Pages: 2980-2991
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412083
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412083
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2980-2991




Template-Type: ReDIF-Article 1.0
Author-Name: Sara Helms McCarty
Author-X-Name-First: Sara Helms
Author-X-Name-Last: McCarty
Author-Name: Erik Angner
Author-X-Name-First: Erik
Author-X-Name-Last: Angner
Author-Name: Brian Scott
Author-X-Name-First: Brian
Author-X-Name-Last: Scott
Author-Name: Sarah Culver
Author-X-Name-First: Sarah
Author-X-Name-Last: Culver
Title: Mandated volunteering: an experimental approach
Abstract: 
 This study employs a novel experimental paradigm to examine crowdout effects in volunteering. Using a framework modelled upon money donation experiments, we examine the impact of ‘forced’ volunteering on the amount of time volunteered. We find that subjects exposed to forced volunteering on the mean voluntarily donate less time than subjects in the control condition. Among religious subjects, the crowdout is 52.8%, suggesting warm-glow giving. Among non-religious subjects, the crowdout is 138%, implying altruistic giving. Thus, policies mandating volunteer activity may be associated with sizeable crowdout effects and might have heterogeneous effects across subpopulations.
Journal: Applied Economics
Pages: 2992-3006
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414931
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414931
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2992-3006




Template-Type: ReDIF-Article 1.0
Author-Name: Mark J. Gibson
Author-X-Name-First: Mark J.
Author-X-Name-Last: Gibson
Author-Name: Qianqian Wang
Author-X-Name-First: Qianqian
Author-X-Name-Last: Wang
Title: Sanitary and phytosanitary measures in Chinese agricultural exports: the role of trade intermediaries
Abstract: 
 We study the effect of sanitary and phytosanitary (SPS) measures on Chinese agricultural exports and the role of trade intermediaries in this process following China’s accession to the World Trade Organization. While both agricultural exports and SPS regulations have grown, the use of trade intermediaries has declined sharply. We develop a model of heterogeneous producer-level decisions about choice of export mode that is consistent with this trend. In our econometric analysis, we analyse the effects of SPS measures and trade intermediaries on Chinese fruit and vegetable exports using transaction-level customs data. In contrast to much of the literature, we find some evidence of positive relationships among SPS measures, trade intermediaries and exports.
Journal: Applied Economics
Pages: 3007-3015
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414932
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414932
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:3007-3015




Template-Type: ReDIF-Article 1.0
Author-Name: Ryan M. McKenna
Author-X-Name-First: Ryan M.
Author-X-Name-Last: McKenna
Author-Name: Debra Dwyer
Author-X-Name-First: Debra
Author-X-Name-Last: Dwyer
Author-Name: John A. Rizzo
Author-X-Name-First: John A.
Author-X-Name-Last: Rizzo
Title: Is HIT a hit? The impact of health information technology on inpatient hospital outcomes
Abstract: 
 In an effort to eliminate inefficiencies in the US health care sector, policymakers have made a concerted effort to encourage hospitals and physicians to adopt health information technology (HIT) systems. Using a unique data set on HIT adoption and health outcomes in New York State, we conduct a hospital-level analysis identifying the impact of adopting HIT on inpatient outcomes (rates of adverse drug events and severity-adjusted mortality). Unlike previous studies, the patient population is not restricted to Medicare patients, but covers all ages and insurance types. After controlling for unobserved hospital quality and endogenous HIT adoption, our results suggest that a hospital’s severity-adjusted mortality decreases by 0.3 percentage points. When restricted to the Medicare patients, we find HIT adoption lowers a hospital’s severity-adjusted mortality rate by 0.5 percentage points. We find HIT to have no significant effect on the rate of ADEs.
Journal: Applied Economics
Pages: 3016-3028
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414934
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414934
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:3016-3028




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Hiroaki Suenaga
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Suenaga
Title: The determinants of price in 3G spectrum auctions
Abstract: 
 This article examined the empirical relationship between prices paid for national 3G wireless licenses when spectrums were sold by auction. The reduced-form modelling approach was based on the premise that auction design features can, and do, affect both final (revenue) and intermediate (viz., auction competitiveness and license assignment) auction outcomes. Importantly, the analysis recognizes, and explicitly allows for, the endogeneity of bidder entry and sample selection arising from an absence of bidding. Generally, these key features have only received attention in isolation. In particular, the study addressed the principal question of: which regulator chosen auction design variables determine prices paid in spectrum auctions? The analysis showed that flexible-package formats increased prices paid, and that higher reserve prices had a dampening effect. The article also showed that longer license terms and more competitive auctions (as measured by the bidders-to-licenses ratio) enhance prices paid.
Journal: Applied Economics
Pages: 3129-3140
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254342
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254342
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3129-3140




Template-Type: ReDIF-Article 1.0
Author-Name: Elias Oikarinen
Author-X-Name-First: Elias
Author-X-Name-Last: Oikarinen
Author-Name: Heidi Falkenbach
Author-X-Name-First: Heidi
Author-X-Name-Last: Falkenbach
Title: Foreign investors’ influence on the real estate market capitalization rate – evidence from a small open economy
Abstract: 
 This article adds to the scarce literature on the influence of international investment flows on local real estate values. We hypothesize that a greater foreign-investor presence in a real estate market results in a lower capitalization rate and examine whether this holds true in the Helsinki CBD office market in Finland. This market provides an interesting case study by being part of a small open economy, in which the presence of foreign investors has substantially varied over time. The Dynamic OLS estimations using data for the period 1990–2015 provide support for the hypothesis. The baseline results show a highly statistically significant negative impact of foreign-investor participation on the capitalization rate, the point estimates indicating that a 10% point growth in the share of foreign buyers of the total transaction volume decreases the cap rate by approximately 30 basis points.
Journal: Applied Economics
Pages: 3141-3155
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254343
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254343
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3141-3155




Template-Type: ReDIF-Article 1.0
Author-Name: Régis Chenavaz
Author-X-Name-First: Régis
Author-X-Name-Last: Chenavaz
Title: Dynamic quality policies with reference quality effects
Abstract: 
 Dynamic pricing policies with reference-price demand have been intensely analysed. Less studied are dynamic quality policies with reference-quality demand. This article studies the dynamic quality policy of a firm whose consumers use a reference point in their decision-making, in line with the principles of behavioural economics. More specifically, I consider reference quality formation in an optimal control setting. By solving on the basis of Pontryagin’s maximum principle, I obtain analytical solutions to the optimal quality policy. The managerial implications of quality reference for dynamic quality policy are discussed.
Journal: Applied Economics
Pages: 3156-3162
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254345
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254345
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3156-3162




Template-Type: ReDIF-Article 1.0
Author-Name: G. C. Montes
Author-X-Name-First: G. C.
Author-X-Name-Last: Montes
Author-Name: R. T. F. Nicolay
Author-X-Name-First: R. T. F.
Author-X-Name-Last: Nicolay
Title: Does clarity of central bank communication affect credibility? Evidences considering governor-specific effects
Abstract: 
 Central banks have made great efforts to increase transparency and accountability to the public. Since then, studies seek empirical evidences about the effects of monetary policy communication over agent’s expectations. The recent literature on central bank communication draws attention to the importance of clarity of central bank communication. However, researches on this theme are still scarce, and there are few empirical studies with conclusive findings. Our study seeks empirical evidences on the relation between clarity of central bank communication and credibility of monetary policy. Estimates through different methods aim to identify whether clarity of central bank communication improves credibility. The study is the first to provide empirical evidence that a clearer communication can improve credibility. We also consider the differences between the two governors who ruled the Central Bank of Brazil in the period under analysis. The results indicate that a clear communication can improve credibility, but it depends on the commitment of the central banker with the goal of inflation control. Furthermore, estimates based on quantile regression indicate that the benefit brought by the clarity to the credibility depends on the commitment of the monetary authority with the goal guiding inflation expectations.
Journal: Applied Economics
Pages: 3163-3180
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254346
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254346
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3163-3180




Template-Type: ReDIF-Article 1.0
Author-Name: Q. Marin
Author-X-Name-First: Q.
Author-X-Name-Last: Marin
Author-Name: A. B. Hernández-Lara
Author-X-Name-First: A. B.
Author-X-Name-Last: Hernández-Lara
Author-Name: F. Campa-Planas
Author-X-Name-First: F.
Author-X-Name-Last: Campa-Planas
Author-Name: M. V. Sánchez-Rebull
Author-X-Name-First: M. V.
Author-X-Name-Last: Sánchez-Rebull
Title: Which factors improve the performance of the internationalization process? Focus on family firms
Abstract: 
 This study aimed to analyse the impact that the financial features and characteristics of the ownership structures of international companies exert on the performance of their internationalization process, as perceived by managers, and attempted to detect differences between family firms (FF) and nonfamily firms (non-FF). In addition, the impact of these characteristics and others related to FF, such as family ownership and generation, on the perceived performance of their internationalization is analysed. Based on a sample of Spanish companies with direct investment in China, the results indicated that, from the managers’ perspective, being an FF and having lower financial leverage exerted a positive effect on the performance of the internationalization process. Moreover, the study proved that this performance was strongly and positively related to the financial results of the company, and this positive effect was even stronger in the case of FF. Finally, the findings also showed that FF with a higher involvement of the family in their ownership recognized a better performance of their internationalization process. These results will be useful for companies that are considering the value of internationalization as a strategy to improve or maintain their financial results, and they also highlight certain differences between FF and non-FF.
Journal: Applied Economics
Pages: 3181-3194
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257103
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257103
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3181-3194




Template-Type: ReDIF-Article 1.0
Author-Name: Charilaos Mertzanis
Author-X-Name-First: Charilaos
Author-X-Name-Last: Mertzanis
Title: Ownership structure and access to finance in developing countries
Abstract: 
 Microsurvey data are used to explore the impact of ownership structure and other firm-specific characteristics on firms’ access to finance in 136 developing countries. The analysis uses a consistent and large data set from the World Bank’s Enterprise Surveys (ESs). The results show that ownership structure is a significant predictor of firms’ access to finance but with qualifications. Specifically, private and foreign ownership are more robust predictors of firms financing constraints in developing countries, whilst government ownership and large owners appear significant in accordance with the controlling conditions and mostly in low-income countries. The predictive power and direction of firms’ ownership structure is mitigated by both the specific characteristics of firms and the manner in which country-level factors affect the level of economic and financial activity in a country as well as the individual and social behaviour towards financial contracting.
Journal: Applied Economics
Pages: 3195-3213
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257106
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257106
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3195-3213




Template-Type: ReDIF-Article 1.0
Author-Name: Sofiane Aboura
Author-X-Name-First: Sofiane
Author-X-Name-Last: Aboura
Author-Name: Y. Eser Arisoy
Author-X-Name-First: Y. Eser
Author-X-Name-Last: Arisoy
Title: Does aggregate uncertainty explain size and value anomalies?
Abstract: 
 This paper examines the impact of aggregate uncertainty on return dynamics of size and book-to-market ratio sorted portfolios. Using VVIX as a proxy for aggregate uncertainty, and controlling for market risk, volatility risk, correlation risk and the variance risk premium, we document significant portfolio return exposures to aggregate uncertainty. In particular, portfolios that contain small and value stocks have significant and negative uncertainty betas, whereas portfolios of large and growth stocks exhibit positive and significant uncertainty betas. Using a quasi-natural experimental setting around the financial crisis, we confirm the differential sensitivity of small versus big and value versus growth portfolios to aggregate uncertainty. We posit that due to their negative uncertainty betas, uncertainty-averse investors demand extra compensation to hold small and value stocks. Our results offer an uncertainty-based explanation to size and value anomalies.
Journal: Applied Economics
Pages: 3214-3230
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257107
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257107
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3214-3230




Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Author-Name: Georgia Kosmopoulou
Author-X-Name-First: Georgia
Author-X-Name-Last: Kosmopoulou
Title: The impact of regional competition on the health care industry
Abstract: 
 We investigate factors that determine firm markups by employing data on prices and quantities of various medical procedures at major hospitals in the United States. We focus on the impact of hospital quality, rival competition and the number of medical procedures upon the health care demand. Our analysis covers health-care markets across the United States with the market definition based upon the hospital referral regions. Our findings highlight potential implications of the relationship between hospital markups and market structure.
Journal: Applied Economics
Pages: 5135-5141
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1467551
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467551
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5135-5141




Template-Type: ReDIF-Article 1.0
Author-Name: Abu Reza Mohammad Islam
Author-X-Name-First: Abu Reza Mohammad
Author-X-Name-Last: Islam
Author-Name: Robin Hang Luo
Author-X-Name-First: Robin Hang
Author-X-Name-Last: Luo
Title: Financing constraints and investment efficiency: evidence from a panel of Canadian forest firms
Abstract: 
 This article examines the financial constraint of 18 listed Canadian forest firms between 2000 and 2014 following the stochastic frontier approach. Empirical results support the observation that Canadian forest firms have a strong dependence of using both equity financing and debt financing as the coefficients of both equity and debt financing mean functions are significant at 1% level. The distribution of investment efficiency index (IEI) of all 18 firms demonstrates a loss of around 40% of the rate of investment due to financing constraints. Regional analysis demonstrates that the time-varying patters of IEI of three provinces are significantly different.
Journal: Applied Economics
Pages: 5142-5154
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1478387
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1478387
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5142-5154




Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Tang
Author-X-Name-First: Xuan
Author-X-Name-Last: Tang
Author-Name: Xiaona Zheng
Author-X-Name-First: Xiaona
Author-X-Name-Last: Zheng
Title: Optimal pricing when rational consumers anticipate monitoring cost
Abstract: 
 This article considers a monopolistic firm’s optimal pricing decision over two periods among dynamic pricing, preannounced pricing and single pricing. In the models, consumers rationally determine whether to exhibit strategic waiting by weighing their costs against prospectively lower price. Our analysis yields three main results. First, single pricing that completely eliminates strategic waiting surely would be dominated by intertemporal pricing when facing rational consumers. Second, preannounced pricing may actually yield lower revenue than dynamic pricing when considering its effect on the reduction of consumer monitoring cost. Only when monitoring costs under dynamic pricing and under preannounced pricing are equal, is firm revenue weakly greater under preannounced pricing than under dynamic pricing. Third, in dynamic pricing equilibrium, increasing monitoring cost may increase firm revenue, consumer surplus and social welfare simultaneously.
Journal: Applied Economics
Pages: 5155-5163
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486010
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486010
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5155-5163




Template-Type: ReDIF-Article 1.0
Author-Name: Gosse A.G. Alserda
Author-X-Name-First: Gosse A.G.
Author-X-Name-Last: Alserda
Author-Name: Jacob A. Bikker
Author-X-Name-First: Jacob A.
Author-X-Name-Last: Bikker
Author-Name: Fieke S.G. Van Der Lecq
Author-X-Name-First: Fieke S.G.
Author-X-Name-Last: Van Der Lecq
Title: X-efficiency and economies of scale in pension fund administration and investment
Abstract: 
 Pension funds’ operating costs impair pension benefits, so it is crucial for pension funds to operate at the lowest cost possible. In practice, we observe substantial differences in costs per member for Dutch pension funds, both across and within pension fund size classes. This article presents new estimates of scale economies of pension funds and is the first that also measures pension fund X-inefficiency. We use a unique supervisory data set which distinguishes between administrative and investment costs and apply various approaches and models. Our estimates show large economies of scale for pension fund administrations, but modest diseconomies of scale for investment activities. We also found that many pension funds have substantial X-inefficiencies for both administrative and investment activities. The two kinds of inefficiency differ across types of pension funds. Therefore, most pension funds should be able to improve their cost performance, and hence increase pension benefits.
Journal: Applied Economics
Pages: 5164-5188
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486011
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486011
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5164-5188




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew J Cassey
Author-X-Name-First: Andrew J
Author-X-Name-Last: Cassey
Author-Name: Ben O Smith
Author-X-Name-First: Ben O
Author-X-Name-Last: Smith
Title: Estimating state-industry employment, with an application to industrial localization
Abstract: 
 We describe a method to construct an industry-by-state repeated cross-section of employment at the most disaggregated level publicly available, covering 1963–2012. Nondisclosed data are estimated with a procedure using the hierarchical information structure. To illustrate the usefulness of the procedure, the resulting estimated data are tested to determine if industrial localization of the processed food sector has changed over the last 50 years in the United States. Our findings suggest it has not changed systemically despite variation in levels of localization within industries.
Journal: Applied Economics
Pages: 5189-5203
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486012
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486012
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5189-5203




Template-Type: ReDIF-Article 1.0
Author-Name: Falko Fecht
Author-X-Name-First: Falko
Author-X-Name-Last: Fecht
Author-Name: Stefan Reitz
Author-X-Name-First: Stefan
Author-X-Name-Last: Reitz
Title: Dealer behaviour in the Euro money market during times of crisis
Abstract: 
 This article shows how the recent money market disruptions with elevated counterparty risks and uncertainty about the fundamental value of liquidity influenced the trading behaviour of a key dealer in the Euro money market. The complete trading record in the unsecured segment of the money market for 2007 and 2008 is used to estimate a stylized pricing model, which explicitly accounts for the over-the-counter structure. The empirical results suggest that the market maker learns from order flow, but this information aggregation was increasingly hampered as the crisis unfolded.
Journal: Applied Economics
Pages: 5204-5219
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486014
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486014
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5204-5219




Template-Type: ReDIF-Article 1.0
Author-Name: Blaise Gnimassoun
Author-X-Name-First: Blaise
Author-X-Name-Last: Gnimassoun
Author-Name: Désiré Avom
Author-X-Name-First: Désiré
Author-X-Name-Last: Avom
Author-Name: Joseph Keneck Massil
Author-X-Name-First: Joseph
Author-X-Name-Last: Keneck Massil
Title: Is regional integration in the CFA zone sustainable?
Abstract: 
 This article aims to study the long-term sustainability of regional integration in the (Communauté Financière Africaine) CFA zone, based on the theory of the endogeneity of monetary zones. To this end, we consider trade and intra-CFA migration as the two quantitative vectors of regional integration. Using robust estimation techniques to overcome the endogeneity bias, our results show that integration in the CFA zone is moderately sustainable. More precisely, while the monetary unions of the CFA zone, in particular that of the WAEMU, contribute to reinforcing the intra-regional mobility of goods and people, they fail to induce strong synchronization of the macroeconomic cycles.
Journal: Applied Economics
Pages: 5220-5237
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486015
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486015
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5220-5237




Template-Type: ReDIF-Article 1.0
Author-Name: Lydie Ancelot
Author-X-Name-First: Lydie
Author-X-Name-Last: Ancelot
Author-Name: Liliane Bonnal
Author-X-Name-First: Liliane
Author-X-Name-Last: Bonnal
Author-Name: Marc-Hubert Depret
Author-X-Name-First: Marc-Hubert
Author-X-Name-Last: Depret
Author-Name: Pascal Favard
Author-X-Name-First: Pascal
Author-X-Name-Last: Favard
Author-Name: Dănuţ-Vasile Jemna
Author-X-Name-First: Dănuţ-Vasile
Author-X-Name-Last: Jemna
Author-Name: Christiana Brigitte Sandu
Author-X-Name-First: Christiana Brigitte
Author-X-Name-Last: Sandu
Title: Unmet need for health care during pregnancy: A French – Romanian comparison
Abstract: 
 Health inequalities emerge from birth, the early neonatal mortality and infant mortality rates being different between countries. These differences may be related to inequalities in use of health care during pregnancy. The aim of this research is to identify and compare the profiles of women who do not follow pregnancy health care recommendations in two European countries with different health systems and indicators: namely France and Romania. However, health care recommendations for pregnant women are free in the two countries. Firstly, unmet need for health care during pregnancy is observed. Secondly, our results reveal that there is a relationship between perinatal health care abandonment and several forms of inequalities (social, informational and psychological). Thirdly, the much higher probability of forgoing perinatal health care for Romanian women could be associated with financial or informational problems which seems counterintuitive because perinatal health care recommendations are free. Free coverage is too insufficient to ensure the efficiency of the perinatal health care system.
Journal: Applied Economics
Pages: 1298-1310
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1660301
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1660301
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1298-1310




Template-Type: ReDIF-Article 1.0
Author-Name: Bing Yan
Author-X-Name-First: Bing
Author-X-Name-Last: Yan
Author-Name: Bo Wen
Author-X-Name-First: Bo
Author-X-Name-Last: Wen
Title: Income inequality, corruption and subjective well-being
Abstract: 
 Based on the data of CGSS2013, we analyse the relationship between income inequality, corruption and subjective well being using an Ordered Probit model. Our results indicate that income inequality and corruption significantly reduces the subjective well-being of our country’s residents. Furthermore, corruption is an important channel for the negative effect of income inequality on subjective well-being, the impact of income inequality on subjective well-being is mainly achieved by the role of corruption. Specifically, the impacts vary according to hukou. Higher degree of income inequality indeed reduces the subjective well-being of urban residents, while it has a positive effect on subjective well-being of rural residents. Corruption has a significant negative impact on the subjective well-being of urban and rural residents. There is heterogeneity in the influence of different income levels in rural areas. The study in this paper shows that anti-corruption and narrowing the income gap are the two major grippers to improve the well-being of the residents.
Journal: Applied Economics
Pages: 1311-1326
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1661953
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1661953
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1311-1326




Template-Type: ReDIF-Article 1.0
Author-Name: Peijingran Yu
Author-X-Name-First: Peijingran
Author-X-Name-Last: Yu
Author-Name: Kenneth A. Couch
Author-X-Name-First: Kenneth A.
Author-X-Name-Last: Couch
Title: Work-limiting health, earnings, and employment: an analysis with SIPP data
Abstract: 
 This study examines the role of work-limiting health conditions on employed people’s earnings, employment status, and working hours, and distinguishes between the different degree and severity of predictable shocks. Using data from the 2004 Survey of Income and Program Participation (SIPP), we evaluate the impact of any work-limiting health condition as well as a subset of health conditions that appear to arrive largely exogenously on post-onset earnings, employment, and working hours. We find that people who report being employed and later experience the onset of any work-limiting health condition tend to have lower subsequent earnings, a reduced probability of being employed, and fewer working hours per month compared to those who remain healthy. The adverse impact is even greater for people with health conditions that arrive less predictably. We use a difference-in-differences regression model with person and year fixed effects as the primary estimation method.
Journal: Applied Economics
Pages: 1327-1348
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1661954
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1661954
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1327-1348




Template-Type: ReDIF-Article 1.0
Author-Name: Amit Prakash Jha
Author-X-Name-First: Amit Prakash
Author-X-Name-Last: Jha
Author-Name: Sanjay Kumar Singh
Author-X-Name-First: Sanjay Kumar
Author-X-Name-Last: Singh
Title: Does diversity matter? A fresh inquiry into the energy, economy and environment nexus
Abstract: 
 The article extends the literature on the nexus among economy, environment and energy by incorporating an index of electricity generation diversity in production and emission functions. The index is mathematically equivalent to Herfindahl–Hirschman index. The index captures substantial information regarding the ongoing energy transition at the global level. The results obtained through pooled mean group estimation, on a dataset of fairly diversified group of countries, indicate that if diversity index increases by a percentage point, per capita income increases by 2.4% and per capita emissions are reduced by 0.71%. This is against the conventional wisdom in favour of specialization. The study has found some interesting long-run causal pathways. Firstly, the causality runs from diversification to income. Secondly, there is a causality running from electricity consumption to specialization. Thirdly, bi-directional causality runs between emissions and specialization. The results have interesting policy implications. The study supports the growth hypothesis that the electricity consumption drives the economy. As this inevitably increases emissions, a better pathway is through diversification. The fossil fuel intensive pathway may have been the preferred choice in the past for countries with low electricity consumption; the diversified portfolio appears to be prudent in the future.
Journal: Applied Economics
Pages: 1349-1362
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1666205
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1666205
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1349-1362




Template-Type: ReDIF-Article 1.0
Author-Name: Wael Hemrit
Author-X-Name-First: Wael
Author-X-Name-Last: Hemrit
Author-Name: Noureddine Benlagha
Author-X-Name-First: Noureddine
Author-X-Name-Last: Benlagha
Title: Asymmetric impacts of insurance premiums on the non-oil GDP: some new empirical evidence
Abstract: 
 In this paper, we study the influence of insurance premium on the non-oil gross domestic product in Saudi Arabia. We implement the nonlinear autoregressive distributed lags. The results show that the relationships between insurance premiums and non-oil gross domestic product manifest a nonlinear behaviour. In other words, insurance premiums via positive and negative shocks lead to an increase of growth in the non-oil sector in the long term, whereas the lagged level shocks negatively affect the non-oil GDP in the short run. In addition, the examination of the multiplier effect suggests that positive cumulative changes in insurance premiums and inflation can effect much larger changes in non-oil GDP, while shocks in government spending have a symmetric effect on non-oil GDP growth.
Journal: Applied Economics
Pages: 1363-1376
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1673300
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1673300
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1363-1376




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Jacobs
Author-X-Name-First: Jan
Author-X-Name-Last: Jacobs
Author-Name: Kazuo Ogawa
Author-X-Name-First: Kazuo
Author-X-Name-Last: Ogawa
Author-Name: Elmer Sterken
Author-X-Name-First: Elmer
Author-X-Name-Last: Sterken
Author-Name: Ichiro Tokutsu
Author-X-Name-First: Ichiro
Author-X-Name-Last: Tokutsu
Title: Public Debt, Economic Growth and the Real Interest Rate: A Panel VAR Approach to EU and OECD Countries
Abstract: 
 We investigate the causal relationship between public debt ratios and economic growth rates for 31 EU and OECD countries. We estimate a panel VAR model that incorporates the long-term real interest rate on government bonds as a vehicle to transmit shocks in both the public debt to GDP ratio and the economic growth rate. We find no causal link from public debt to growth, irrespective of the levels of the public debt ratio. Rather, we find a causal relationship from growth to public debt. In high-debt countries, the direct negative impact of growth on public debt is enhanced by an increase in the long-term real interest rate, which in its turn decreases interest-sensitive demand and leads to a further increase in the public debt ratio.
Journal: Applied Economics
Pages: 1377-1394
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1673301
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1673301
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1377-1394




Template-Type: ReDIF-Article 1.0
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: Does the Reserve Bank of Australia follow a forward-looking nonlinear monetary policy rule?
Abstract: 
 The conventional monetary policy rule describes a simple linear relationship between the domestic interest rate, inflation rate and output gap. An important extension to this rule is to incorporate the forward-looking behaviour of central banks, where it is assumed that they target an expected level of inflation instead of its current realised value. Using quarterly observations for the period 1993:1-2018:2, this paper investigates whether the conduct of monetary policy in Australia can be described by a forward-looking linear monetary policy rule, or by a nonlinear forward-looking monetary policy rule. In particular, the nonlinear forward-looking monetary policy rule is analysed in a regime-switching framework using a smooth logistic transition regression model. While the results show that the conventional forward-looking linear monetary policy rule describes the application of monetary policy in Australia reasonably well, the interest rate setting behaviour of the RBA is best described by a nonlinear forward-looking monetary policy rule.
Journal: Applied Economics
Pages: 1395-1408
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1673302
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1673302
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1395-1408




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Brunori
Author-X-Name-First: Paolo
Author-X-Name-Last: Brunori
Author-Name: Flaviana Palmisano
Author-X-Name-First: Flaviana
Author-X-Name-Last: Palmisano
Author-Name: Vitorocco Peragine
Author-X-Name-First: Vitorocco
Author-X-Name-Last: Peragine
Title: Inequality of opportunity in sub-Saharan Africa
Abstract: 
 Inequality of opportunity is defined as the difference in individuals’ outcome systematically correlated with morally irrelevant pre-determined circumstances, such as ethnicity, socio-economic background, area of birth. This definition has been extensively studied by economists on the assumption that, in addition to being normatively undesirable, it can be related to low potentials for growth. However, empirical estimations of inequality of opportunity require accessing rich data sources, rarely available in poorer countries. In this paper, we exploit 13 consumption household surveys to evaluate inequality of opportunity in 10 Sub-Saharan African countries. According to our results, the portion of total inequality that can be attributed to exogenous circumstances is between 40% and 56% for the generality of countries. Our estimates are significantly higher than what has been found by previous studies. We detect a positive association between total consumption inequality and inequality of opportunity, and we study the different sources of unequal opportunities. The place of birth and the education of the father appear to exert the most relevant role in shaping inequality of opportunity in the region.
Journal: Applied Economics
Pages: 6428-6458
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619018
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619018
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6428-6458




Template-Type: ReDIF-Article 1.0
Author-Name: Tariro Makwasha
Author-X-Name-First: Tariro
Author-X-Name-Last: Makwasha
Author-Name: Jill Wright
Author-X-Name-First: Jill
Author-X-Name-Last: Wright
Author-Name: Param Silvapulle
Author-X-Name-First: Param
Author-X-Name-Last: Silvapulle
Title: Panel data analysis of multi-factor capital asset pricing models
Abstract: 
 In this article, we propose MFCAPM panel models with fixed effects and test theories associated with risk exposures and anomalies postulated by Fama and French, and we assess their out-of-sample predictive performances. Based on the portfolios formed by French, we construct 10 panel models, each consisting of 10 portfolios grouped by size deciles, and another 10 panels by value deciles. In the presence of cross-section dependence, the MFCAPM panel model is estimated by the feasible generalized least squares (FGLS) method for the sample period 1963(1)-2018(9). The results show that the market, firm-size and value risk exposures are significant and robust across three-, five- and six-factor panel models. Significant time-fixed effects indicate that there are several portfolios resilient to dot.com bubble peak in 2000, while some others resilient to GFC in 2007. We estimate the models for the in-sample period 1963(1)–1999(12) and generate the out-of-sample portfolio returns for the period 2000(1)–2018(9). We find that portfolio returns forecasts generated by the six-factor panel model are superior to other MFCAPM panel models, mostly due to the momentum factor (investor behaviour) explaining large return variations and volatility exposures. The findings have implications for investors, security traders and portfolio risk managers.
Journal: Applied Economics
Pages: 6459-6475
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619019
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619019
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6459-6475




Template-Type: ReDIF-Article 1.0
Author-Name: Francois P. Kabore
Author-X-Name-First: Francois P.
Author-X-Name-Last: Kabore
Author-Name: Walter G. Park
Author-X-Name-First: Walter G.
Author-X-Name-Last: Park
Title: Can patent family size and composition signal patent value?
Abstract: 
 Recent research has proposed a method of patent valuation based on weighting patent family size by the market size of the countries in the family. The premise is that inventors tend to seek greater international coverage for their more valuable patents. The paper presents a novel way to test the ability of market size-weighted patent families to predict patent value and compares the method against extant measures of patent valuation based on patent citations and renewal behaviour. We use forecasting techniques to show that the weighted patent family size measure outperforms other methods in terms of predicting patent life and the number of citations. An advantage of the weighted patent family size measure is that it is based on ex-ante information and is easy to construct for purposes of evaluating patent value. We demonstrate this advantage using a large, comprehensive database of international patent families.
Journal: Applied Economics
Pages: 6476-6496
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1624914
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624914
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6476-6496




Template-Type: ReDIF-Article 1.0
Author-Name: Salma Ahmed
Author-X-Name-First: Salma
Author-X-Name-Last: Ahmed
Author-Name: Mark McGillivray
Author-X-Name-First: Mark
Author-X-Name-Last: McGillivray
Title: Higher education enrolment in Bangladesh: does the wage premium matter?
Abstract: 
 This paper empirically examines the decisions of individuals to enrol in a course of tertiary education in Bangladesh, focussing on the period 1999 to 2009. Of particular interest is whether the wage premium―the gap in wage earnings between tertiary and secondary school graduates―is associated with decisions to enrol in tertiary education. The analytical framework used here is the human capital theory, which is tested through a discrete choice model. Using data from Bangladesh Labour Force Surveys, empirical results suggest that the wage premium is positively associated with decisions of males to enrol in tertiary education, while for females there appears to be no such association. A battery of robustness tests supports our results.
Journal: Applied Economics
Pages: 6497-6516
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1624917
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624917
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6497-6516




Template-Type: ReDIF-Article 1.0
Author-Name: Luyuan Zheng
Author-X-Name-First: Luyuan
Author-X-Name-Last: Zheng
Author-Name: Yuexiang Jiang
Author-X-Name-First: Yuexiang
Author-X-Name-Last: Jiang
Author-Name: Huaigang Long
Author-X-Name-First: Huaigang
Author-X-Name-Last: Long
Title: Exchange rates change, asset-denominated currency difference and stock price fluctuation
Abstract: 
 This paper examines differences in the connectedness between exchange rates and stock prices for companies with different asset currencies on the Hong Kong stock market, and it seeks to explain those differences by proposing a hypothesis on asset-denominated currency difference. Under a framework of investor heterogeneity, we establish a dynamic, discrete theoretical model to analyse the connectedness between exchange rates, the stocks of local Hong Kong companies, the stocks of companies from the mainland and foreign exchange interventions. Using monthly data from January 2000 to August 2018, we adopt the time-varying parameter vector auto-regression (TVP-VAR) model to empirically study the dynamic relationships between exchange rates and the prices of both Hong Kong-based and mainland-based stocks. The results show significant differences in the ways that exchange rates and prices for the two types of stocks are linked. The exchange rates are positively correlated with mainland stocks and negatively correlated with Hong Kong stocks. Moreover, foreign exchange intervention is found to be an effective means for stabilising exchange rates, although such intervention tends to increase stock volatility.Abbreviations: TVP-VAR - time-varying parameter vector auto-regression model; MCMC - Monte Carlo-Markov Chain method.
Journal: Applied Economics
Pages: 6517-6534
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1624920
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624920
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6517-6534




Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Sofer
Author-X-Name-First: Catherine
Author-X-Name-Last: Sofer
Author-Name: Claire Thibout
Author-X-Name-First: Claire
Author-X-Name-Last: Thibout
Title: Women’s investment in career and the household division of labour
Abstract: 
 This paper examines how partners in a couple share domestic work according to the woman’s investment in career. Investment is measured relatively to other women or to the partner. While previous studies mainly focused on the influence of wages and earnings, we extend them by considering more dimensions describing the intensity of the woman’s attachment to the labour market. We use the 2010 French Time Use survey to estimate a model of household division of labour in dual earner couples. We find that the more women are invested in career, the less domestic work they perform during weekdays, which is partly substituted by their partners but only on weekend days. The sharing of tasks is thus less unequal in those couples. However, women still spend more time than their partners on average performing domestic work, even when the woman outperforms him in career, implying no role reversal in the division of labour.
Journal: Applied Economics
Pages: 6535-6557
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1644440
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644440
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6535-6557




Template-Type: ReDIF-Article 1.0
Author-Name: Thierry Kirat
Author-X-Name-First: Thierry
Author-X-Name-Last: Kirat
Author-Name: Amir Rezaee
Author-X-Name-First: Amir
Author-X-Name-Last: Rezaee
Title: How stock markets react to regulatory sanctions? Evidence from France
Abstract: 
 Our study of how the stock market reacts to sanction announcements by the French financial regulator from 2004 to 2017 finds that the market reacts negatively when a sanction is announced in the press. Cross-sectional regression models show that the penalties are too low to influence market reactions. Our results suggest that after the financial crisis of 2008, a plethora of news on financial wrongdoings has desensitized markets to announcements of sanctions against large companies.
Journal: Applied Economics
Pages: 6558-6566
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1644443
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644443
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6558-6566




Template-Type: ReDIF-Article 1.0
Author-Name: Bing Xu
Author-X-Name-First: Bing
Author-X-Name-Last: Xu
Author-Name: Adrian van Rixtel
Author-X-Name-First: Adrian
Author-X-Name-Last: van Rixtel
Author-Name: Michiel van Leuvensteijn
Author-X-Name-First: Michiel
Author-X-Name-Last: van Leuvensteijn
Title: Measuring bank competition under binding interest rate regulation: the case of China
Abstract: 
 Many empirical studies suggest that financial reform promoted bank competition in most mature and emerging economies. However, some earlier studies that adopted conventional approaches to measure competition have concluded that bank competition in China declined during the past decade, despite progressive reforms implemented since the 1980s. We show that this apparent contradiction is the result of flawed measurement. Conventional indicators such as the Lerner index and Panzar–Rosse H-statistic fail to measure competition in Chinese loan markets properly due to the system of interest rate regulation. By contrast, the profit elasticity (PE) approach does not suffer from these shortcomings. Using balance sheet information for a large sample of banks operating in China during 1996–2008, we show that competition actually increased in the past decade when the PE indicator is used.
Journal: Applied Economics
Pages: 4699-4718
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164818
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164818
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4699-4718




Template-Type: ReDIF-Article 1.0
Author-Name: Alejandro Arrieta
Author-X-Name-First: Alejandro
Author-X-Name-Last: Arrieta
Author-Name: Ariadna García Prado
Author-X-Name-First: Ariadna
Author-X-Name-Last: García Prado
Title: Non-elective C-sections in public hospitals: capacity constraints and doctor incentives
Abstract: 
 Using administrative records of births from the Perinatal Surveillance System of the Peruvian Social Security System (ESSALUD), we test whether high admissions of pregnant women affected non-elective caesarean section (C-section) rates in the ESSALUD public hospitals during 2005–2006. We present a basic theoretical model that considers physician preferences for leisure and hospital capacity constraints, and test the model predictions. We find that physician demand for leisure increases the probability of C-sections in small and medium-size hospitals, while hospital capacity constraints set a limit on them. We discuss the policy implications as well as the policies implemented to avoid unnecessary C-sections.
Journal: Applied Economics
Pages: 4719-4731
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164820
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164820
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4719-4731




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M. Blau
Author-X-Name-First: Benjamin M.
Author-X-Name-Last: Blau
Author-Name: Devon H. Gorry
Author-X-Name-First: Devon H.
Author-X-Name-Last: Gorry
Author-Name: Chip Wade
Author-X-Name-First: Chip
Author-X-Name-Last: Wade
Title: Guns, laws and public shootings in the United States
Abstract: 
 Since the late 1990s, there have been increasing numbers of public shootings carried out with firearms in the United States. These tragedies continually renew the regulatory debate concerning public safety while considering civil liberties. Using a unique data set, we investigate whether laws correspond to whether an event occurs and the effects of event-specific characteristics on public shooting outcomes. In particular, we analyse how state-specific gun laws, the types of firearms, the shooting venues and the mental health of the gunman impact the outcomes of public shootings. Results show that most gun laws are unrelated to whether an event occurs. In addition, common state and federal gun laws that outlaw assault weapons are unrelated to the likelihood of an assault weapon being used during a public shooting event. Moreover, results show that the use of assault weapons is not related to more victims or fatalities than other types of guns. However, the use of hand guns, shot guns and high-capacity magazines is directly related to the number of victims and fatalities in a public shooting event. Finally, the gunman’s reported mental illness is often associated with an increase in the number of victims and fatalities.
Journal: Applied Economics
Pages: 4732-4746
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164821
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164821
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4732-4746




Template-Type: ReDIF-Article 1.0
Author-Name: Wonho Wilson Choi
Author-X-Name-First: Wonho Wilson
Author-X-Name-Last: Choi
Author-Name: Jinyong Kim
Author-X-Name-First: Jinyong
Author-X-Name-Last: Kim
Author-Name: Mingook Kim
Author-X-Name-First: Mingook
Author-X-Name-Last: Kim
Title: Derivatives holdings and market values of U.S. bank holding companies
Abstract: 
 We examine the impact of derivatives held by US bank holding companies on their market valuations over the period 2000 to 2010. By using bank-level data with detailed information on the notional amounts of derivative positions according to holding purposes and underlying asset types, our regression analyses provide three main findings. First, derivative instruments held for hedging rather than trading purposes contribute to enhancing market values. Second, the positive effects exhibit nonmonotonic patterns indicating that excessive amounts of derivatives holdings deteriorate market values. Third, interest rate derivatives are the main source of high valuations.
Journal: Applied Economics
Pages: 4747-4757
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164822
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164822
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4747-4757




Template-Type: ReDIF-Article 1.0
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: Asymmetric monetary policy rules in Australia
Abstract: 
 In this study, the hypothesis that the Reserve Bank of Australia (RBA) implements an asymmetric monetary policy rule is tested. We estimate both linear and asymmetric monetary policy reaction functions for the period before inflation targeting was adopted, for the period when inflation targeting was explicitly adopted and for the full sample period. The results of the linear monetary policy rules are consistent with the estimates reported from other studies that estimate linear monetary policy rules for Australia. On the other hand, the results of estimating the asymmetric monetary policy rules for the pre-inflation targeting period shows that the RBA had reacted symmetrically, suggesting that it had acted with the same aggressiveness towards both inflation and output gaps of the same magnitude, over both phases of the business cycle. However, for the inflation targeting period, the results show that the RBA had reacted asymmetrically in its policy response to the inflation gap, output gap or both. A similar result is found for the full sample period. This asymmetric response supports the view that a non-linear monetary policy rule emanated from asymmetric preferences, rather than from the existence of a non-linear Phillips curve.
Journal: Applied Economics
Pages: 4758-4772
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164823
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164823
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4758-4772




Template-Type: ReDIF-Article 1.0
Author-Name: M. Ali Choudhary
Author-X-Name-First: M. Ali
Author-X-Name-Last: Choudhary
Author-Name: Sajawal Khan
Author-X-Name-First: Sajawal
Author-X-Name-Last: Khan
Author-Name: Farooq Pasha
Author-X-Name-First: Farooq
Author-X-Name-Last: Pasha
Author-Name: Muhammad Rehman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Rehman
Title: The dominant borrower syndrome
Abstract: 
 The financing channel of a fiscal stimulus matters for the size and the sign of the fiscal multiplier. We develop a general equilibrium model where a fiscal stimulus is partially bank-funded and the government becomes the dominant borrower from banks relative to entrepreneurs. This leads to a negative impact on credit spreads, investment and a contraction in output. We support our story with a structural vector autoregression for a sample of developing countries featuring the dominant borrower syndrome.
Journal: Applied Economics
Pages: 4773-4782
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164824
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164824
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4773-4782




Template-Type: ReDIF-Article 1.0
Author-Name: Tilak Abeysinghe
Author-X-Name-First: Tilak
Author-X-Name-Last: Abeysinghe
Author-Name: Jiaying Gu
Author-X-Name-First: Jiaying
Author-X-Name-Last: Gu
Title: Estimating fundamental and affordable housing price trends: a study based on Singapore
Abstract: 
 Policy-makers often impose some cooling measures on the housing market when housing prices rise fast. Such policies yield limited success if housing prices are driven up by fundamentals. Estimating a fundamental price trend from observed price data is a challenge. We present an empirical methodology to separate housing price trends into fundamental and affordable components. Deviating from the common practice, we replace current income by a long-run income measure constructed from household incomes at different quantiles. This income measure provides a more suitable basis for constructing affordable house price levels. It also serves as a better fundamental variable, especially for segmented housing markets like that of Singapore. These price trends provide policy-makers with useful information to intervene into property markets to achieve desirable outcomes. Analysing Singapore data using this methodology shows the magnitudes of the price gaps between actual and fundamental prices and how housing affordability fluctuates over price cycles.
Journal: Applied Economics
Pages: 4783-4798
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164825
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164825
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4783-4798




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1178976
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178976
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:i-i




Template-Type: ReDIF-Article 1.0
Author-Name: Omar Belkhodja
Author-X-Name-First: Omar
Author-X-Name-Last: Belkhodja
Author-Name: Muhammad Mohiuddin
Author-X-Name-First: Muhammad
Author-X-Name-Last: Mohiuddin
Author-Name: Egide Karuranga
Author-X-Name-First: Egide
Author-X-Name-Last: Karuranga
Title: The determinants of FDI location choice in China: a discrete-choice analysis
Abstract: 
 This study addresses two questions: What are the determinants of foreign direct investment (FDI) location choice in China? What are the factors that determine investors’ choice between ‘Economic zones’ in China on one hand, and ‘other cities’ of China on the other hand? This study shows that FDI location choice is sensitive both on the endowment conditions in different regions/cities/economic zones in China as well as on the country of origin of the FDI. Based on a data set of 1218 observations, the results of the binary logit regressions indicate that the protection of intellectual rights, agglomeration economies, investments in education and gross regional product affect the location choice of FDI in China. This choices, however, varies depending on the origin of the FDI. Policy makers can use these findings to channel FDI to targeted regions/ cities.
Journal: Applied Economics
Pages: 1241-1254
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1153786
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153786
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1241-1254




Template-Type: ReDIF-Article 1.0
Author-Name: Walid Mensi
Author-X-Name-First: Walid
Author-X-Name-Last: Mensi
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Title: Impact of macroeconomic factors and country risk ratings on GCC stock markets: evidence from a dynamic panel threshold model with regime switching
Abstract: 
 This study examines the non-linear relationship between stock markets in GCC countries and their country risk ratings as well as with major macroeconomic factors. Based on a dynamic panel threshold model with two and four regimes, the results provide evidence of short-term asymmetry between first-lagged GCC stock returns and the performance of GCC stock markets. In addition, only the financial risk (FR) rating has a significant positive effect on the performance of GCC stock markets according to the prevailing regimes for the GCC lagged returns and the Brent oil market. Among the macroeconomic factors, improvements in the global stock markets, the MSCI Global Islamic Index, and the oil price increased the performance of GCC stock markets, whereas increases in the gold price, the 3-month U.S. Treasury bill rate, and the U.S. Treasury bond rate reduced the performance of the GCC stock markets. These results have important implications for investors, policymakers, and portfolio managers.
Journal: Applied Economics
Pages: 1255-1272
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217305
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217305
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1255-1272




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Khalid Ahmed
Author-X-Name-First: Khalid
Author-X-Name-Last: Ahmed
Title: CO emissions in Australia: economic and non-economic drivers in the long-run
Abstract: 
 Australia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries. Per capita CO2 emissions tend to be highest amongst OECD countries, creating new challenges to cut back emissions towards international standards. This research explores the long-run dynamics of CO2 emissions, economic and population growth along with the effects of globalization tested as contributing factors. We find economic growth is not emission-intensive in Australia, while energy consumption is emissions intensive. Second, in an environment of increasing population, our findings suggest Australia needs to be energy efficient at the household level, creating appropriate infrastructure for sustainable population growth. High population growth and open migration policy can be detrimental in reducing CO2 emissions. Finally, we establish globalized environment has been conducive in combating emissions. In this respect, we establish the beneficial effect of economic globalization compared to social and political dimensions of globalization in curbing emissions.
Journal: Applied Economics
Pages: 1273-1286
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217306
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217306
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1273-1286




Template-Type: ReDIF-Article 1.0
Author-Name: E. De La Poza
Author-X-Name-First: E.
Author-X-Name-Last: De La Poza
Author-Name: L. Jódar
Author-X-Name-First: L.
Author-X-Name-Last: Jódar
Author-Name: A. Pricop
Author-X-Name-First: A.
Author-X-Name-Last: Pricop
Title: Modelling and analysing voting behaviour: the case of the Spanish general elections
Abstract: 
 The permanent high-level public and private debt, high unsustainable youth unemployment rates, combined with the constant disclosure of establishment parties’ corruption scandals, are features of the present Spanish scenario. Lack of confidence in the government’s labour is driving a large proportion of the electoral register to support new emergent political parties. This article models and analyses Spanish citizens’ electoral behaviour in what were the last Spanish General Elections (2015). The proposed compartmental model is based on a system of six different equations. Transition coefficients are quantified according to economic, demographic, psychological and sociological factors. After obtaining the initial data from previous general elections and by sampling new voters’ intentions, the expected electoral support was computed and analysed. Our results predict the end of the two-party system in Spain and a change to a main four-party system.
Journal: Applied Economics
Pages: 1287-1297
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217307
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217307
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1287-1297




Template-Type: ReDIF-Article 1.0
Author-Name: Charlene M. Kalenkoski
Author-X-Name-First: Charlene M.
Author-X-Name-Last: Kalenkoski
Author-Name: Eakamon Oumtrakool
Author-X-Name-First: Eakamon
Author-X-Name-Last: Oumtrakool
Title: The caregiving responsibilities of retirees: what are they and how do they affect retirees’ well-being?
Abstract: 
 Using data from the 2010 and 2012 American Time Use Surveys (ATUS) and the associated Well-being Modules (WBM), this article examines how caregiving affects the well-being of retirees who are caregivers. Different caregiving activities are examined, including caring for household adults, caring for non-household adults, and caring for children. Different aspects of well-being are examined, including how meaningful respondents find their activities and how happy, sad, tired, in pain, and stressed their activities make them. The results show that, controlling for selection into caregiving, most caregiving negatively affects the well-being of retirees. This suggests that policies that remove some of the caregiving burden from retirees would increase their well-being.
Journal: Applied Economics
Pages: 1298-1310
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217308
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217308
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1298-1310




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Knabe
Author-X-Name-First: Andreas
Author-X-Name-Last: Knabe
Author-Name: Ronnie Schöb
Author-X-Name-First: Ronnie
Author-X-Name-Last: Schöb
Author-Name: Joachim Weimann
Author-X-Name-First: Joachim
Author-X-Name-Last: Weimann
Title: The subjective well-being of workfare participants: insights from a day reconstruction survey
Abstract: 
 In this article, we shed more light on the subjective well-being of workfare participants and compare it to the well-being of unemployed and employed workers. We use data from a self-conducted survey among participants in workfare schemes in Germany. We examine two subdimensions of subjective well-being – life satisfaction and emotional well-being – separately to obtain a more comprehensive view of the subjective well-being of workfare participants. Our results show that the life satisfaction of people in this group is between that of employed and unemployed people. In contrast, their emotional well-being is the highest of these three groups.
Journal: Applied Economics
Pages: 1311-1325
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217309
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217309
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1311-1325




Template-Type: ReDIF-Article 1.0
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Title: Short-term forecasting with mixed-frequency data: a MIDASSO approach
Abstract: 
 In this article, we extend the targeted-regressor approach suggested in Bai and Ng (2008) for variables sampled at the same frequency to mixed-frequency data. Our MIDASSO approach is a combination of the unrestricted MIxed-frequency DAta-Sampling approach (U-MIDAS) (see Foroni et al. 2015; Castle et al. 2009; Bec and Mogliani 2013), and the LASSO-type penalized regression used in Bai and Ng (2008), called the elastic net (Zou and Hastie 2005). We illustrate our approach by forecasting the quarterly real GDP growth rate in Switzerland.
Journal: Applied Economics
Pages: 1326-1343
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217310
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217310
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1326-1343




Template-Type: ReDIF-Article 1.0
Author-Name: M.-A. Véganzonès-Varoudakis
Author-X-Name-First: M.-A.
Author-X-Name-Last: Véganzonès-Varoudakis
Author-Name: P. Plane
Author-X-Name-First: P.
Author-X-Name-Last: Plane
Title: Innovation, exports, productivity and investment climate; a study based on Indian manufacturing firm-level data
Abstract: 
 In this paper, we use univariate instrumental estimations to study the interactions between firm-level innovation, exports and productivity in the Indian manufacturing sector. To differentiate incentives to innovate from the ability to innovate, we distinguish the inputs of innovation (R&D and training) from the outputs. Our findings highlight a virtuous circle between the three components of innovation, as well as between firms’ R&D, innovation and exports. The productivity of Indian manufacturing firms is benefiting from this dynamics, as exports and innovation improve firms’ TFP. With respect to the investment climate, our results suggest that differences in the environment of Indian companies contribute to their performance gaps. These results are all the more important in the context of the Make in India campaign and the weaknesses of India’s business environment.
Journal: Applied Economics
Pages: 4455-4476
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1591606
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591606
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4455-4476




Template-Type: ReDIF-Article 1.0
Author-Name: Vasilios Plakandaras
Author-X-Name-First: Vasilios
Author-X-Name-Last: Plakandaras
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Persistence of economic uncertainty: a comprehensive analysis
Abstract: 
 One of the most heavily researched and cited issue in applied economics is the relationship of uncertainty indices with the financial and macroeconomic variables. While the statistical features of financial and macroeconomic variables have been thoroughly examined, virtually nothing has been done to examine uncertainty indices under the statistical perspective. In this paper, we focus on two primary characteristics of uncertainty indices: persistence and chaotic behaviour. In order to evaluate the persistence and the chaotic behaviour we analyse 72 popular uncertainty indices constructed by forecasting models, text mining from news articles and data mining from monetary variables to measure the Hurst and Lyapunov exponents in rolling windows. The examination in rolling windows provides a dynamic evaluation of the specific characteristics revealing significant variations of persistence and chaotic dynamics with time. More specifically, we find that almost all uncertainty indices are persistent, while the chaotic dynamics are detected only sporadically and for certain indices during recessions of economic turbulence. Thus, we suggest that the examination of persistence and chaos should be a prerequisite step before using uncertainty indices in economic policy models.
Journal: Applied Economics
Pages: 4477-4498
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1591607
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591607
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4477-4498




Template-Type: ReDIF-Article 1.0
Author-Name: Ken Miyajima
Author-X-Name-First: Ken
Author-X-Name-Last: Miyajima
Author-Name: James Yetman
Author-X-Name-First: James
Author-X-Name-Last: Yetman
Title: Assessing inflation expectations anchoring for heterogeneous agents: analysts, businesses and trade unions
Abstract: 
 Forecasts of agents who are actively involved in the setting of prices and wages are less readily available than those of professional analysts but may be more relevant for understanding inflation dynamics. Here we compare inflation expectations anchoring between analysts, businesses and trade unions for one country for which comparable forecasts are available for almost two decades: South Africa. Forecasts are modelled as monotonically diverging from an estimated long-run anchor point, or ‘implicit anchor’, towards actual inflation as the forecast horizon shortens. We find that the estimated inflation anchors of analysts lie within the 3–6 percent inflation target range of the central bank. However, those for businesses and trade unions, which our evidence suggests may be the most relevant for driving the inflation process, have remained above the top end of the official target range. Our results point to challenges for central banks seeking to gain credibility with agents whose decisions directly influence inflation.
Journal: Applied Economics
Pages: 4499-4515
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593317
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593317
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4499-4515




Template-Type: ReDIF-Article 1.0
Author-Name: Kris Ivanovski
Author-X-Name-First: Kris
Author-X-Name-Last: Ivanovski
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Title: Economic policy uncertainty and demand for money in Australia
Abstract: 
 The demand for money has received a great deal of attention in the empirical literature. This literature, however, has emphasized factors such as interest rate, income, inflation rate and exchange rate as the primary determinants of money demand. Although an emerging strand of literature examines uncertainty as a potential determinant of money demand, findings have been mixed. Using a news-based Economic Policy Uncertainty (EPU) index and Australian quarterly data from 1998 to 2017, we study the impact of policy uncertainty on demand for money. Autoregressive distributed lag (ARDL) results show that the economic policy uncertainty measure has a negative short-run effect on the demand for money, suggesting the wider public hedge against future expected inflation, and positive long-run effect, whereby the broader public hold more cash to stay liquid during times of economic uncertainty. Also, introducing nonlinearity into the money demand equation, we find an asymmetric effect, more in favour of currency appreciations, supporting the expectations effect of further appreciations in exchange rate movements.
Journal: Applied Economics
Pages: 4516-4526
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593936
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593936
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4516-4526




Template-Type: ReDIF-Article 1.0
Author-Name: Mário J. A. Fortuna
Author-X-Name-First: Mário J. A.
Author-X-Name-Last: Fortuna
Author-Name: Francisco J. F. Silva
Author-X-Name-First: Francisco J. F.
Author-X-Name-Last: Silva
Author-Name: João C. A. Teixeira
Author-X-Name-First: João C. A.
Author-X-Name-Last: Teixeira
Title: International transatlantic trade liberalization: zooming in on regional impacts
Abstract: 
 The current study analyses the impact on a Portuguese small island regional economy of the Transatlantic Trade and Investment Partnership (T-TIP) between the EU and the USA. A dynamic Computational General Equilibrium (CGE) model detailing six household categories, 45 sectors, and four trading partners is used. Previous studies used aggregate variables and, largely, were based on the structure of the national economy. For a small, integrated economy, foreign trade statistics comprise an underestimation, given that most of the trade occurs through national logistics centres. Taking into account the national integration effects, gross domestic value was estimated to be higher than in other studies. Using equivalent variation, the estimated welfare impact is positive for all six household categories. Value-added suffers mixed impacts depending on the sector. It is negative for fisheries, ambiguous for agriculture and positive for tourism and transportation. The contribution of the current study is to highlight the importance of looking beneath the trade block and national conclusions particularly when regional economic policy is relevant as is the case in Europe. Better knowledge of welfare, regional and sector impacts allows for improved development and mitigation policies.
Journal: Applied Economics
Pages: 4527-4538
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593937
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593937
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4527-4538




Template-Type: ReDIF-Article 1.0
Author-Name: M. Angerer
Author-X-Name-First: M.
Author-X-Name-Last: Angerer
Author-Name: M. Dünser
Author-X-Name-First: M.
Author-X-Name-Last: Dünser
Author-Name: L. Kaiser
Author-X-Name-First: L.
Author-X-Name-Last: Kaiser
Author-Name: G. Peter
Author-X-Name-First: G.
Author-X-Name-Last: Peter
Author-Name: S. Stöckl
Author-X-Name-First: S.
Author-X-Name-Last: Stöckl
Author-Name: A. Veress
Author-X-Name-First: A.
Author-X-Name-Last: Veress
Title: What drives our Beer Consumption?---In Search of Nutrition Habits and Demographic Patterns
Abstract: 
 Conventional wisdom in Germany claims pork hocks with sauerkraut and beer. But is it really that simple? In an unbalanced cross-country panel covering 169 nations and time-series records of up to 52 years, we analyse drivers behind beer consumption. Based on data gathered from Worldbank and Faostat, we run multivariate panel regressions and test for the explanatory power of three categories of food and six macroeconomic and demographic variables. Indeed, we confirm most clichés of a typical beer drinker being a middle-aged urbanite with a strong desire for pork and potatoes, however, disliking cheese and wine.
Journal: Applied Economics
Pages: 4539-4550
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593938
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593938
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4539-4550




Template-Type: ReDIF-Article 1.0
Author-Name: Daisuke Nishijima
Author-X-Name-First: Daisuke
Author-X-Name-Last: Nishijima
Author-Name: Shigemi Kagawa
Author-X-Name-First: Shigemi
Author-X-Name-Last: Kagawa
Author-Name: Keisuke Nansai
Author-X-Name-First: Keisuke
Author-X-Name-Last: Nansai
Author-Name: Masahiro Oguchi
Author-X-Name-First: Masahiro
Author-X-Name-Last: Oguchi
Title: Economic consequences of the Home Appliance Eco-Point Program in Japan: a dynamic discrete choice approach
Abstract: 
 This study combined a dynamic discrete choice model for air conditioner replacement decisions with an inter-industry model in order to evaluate the economic impact of Japan’s Home Appliance Eco-Point Program, an appliance replacement program that was in effect from May 2009 to March 2011. Focusing on air conditioners produced from 1995 to 1999 and replaced during the period from 2005 to 2013, we found that the eco-point program increased replacement probabilities by 1.5% to 1.9% in 2009. Moreover, the program produced an additional output of 31,337 million yen and a total value added of 21,259 million yen. However, the benefit–cost ratio – determined by dividing the increase in value added by the monetary value of the points awarded for appliance replacement – was only 0.68. From a cost-benefit perspective, the program can be judged not to have been an effective policy measure.
Journal: Applied Economics
Pages: 4551-4563
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593939
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593939
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4551-4563




Template-Type: ReDIF-Article 1.0
Author-Name: Artur Silva Lopes
Author-X-Name-First: Artur Silva
Author-X-Name-Last: Lopes
Author-Name: Gabriel Florin Zsurkis
Author-X-Name-First: Gabriel Florin
Author-X-Name-Last: Zsurkis
Title: Are linear models really unuseful to describe business cycle data?
Abstract: 
 We use first differenced logged quarterly series for the GDP of 29 countries and the euro area to assess the need to use non-linear models to describe business cycle dynamic behaviour. Our approach is model (estimation)-free, based on testing only. We aim to maximize power to detect non-linearities while, simultaneously, avoiding the pitfalls of data mining. The evidence we find does not support some descriptions because the presence of significant non-linearities is observed for two-thirds of the countries only. Linear models cannot be simply dismissed as they are frequently useful. Contrarily to common knowledge, non-linear business cycle variation does not seem to be a universal, undisputable and clearly dominant stylized fact. This finding is particularly surprising for the U.S. case. Some support for non-linear dynamics for some further countries is obtained indirectly, through unit root tests, but this can hardly be invoked to support non-linearity in classical business cycles.
Journal: Applied Economics
Pages: 2355-2376
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1495825
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495825
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2355-2376




Template-Type: ReDIF-Article 1.0
Author-Name: Yuepeng Zhou
Author-X-Name-First: Yuepeng
Author-X-Name-Last: Zhou
Author-Name: Xiaoping Shi
Author-X-Name-First: Xiaoping
Author-X-Name-Last: Shi
Author-Name: Nico Heerink
Author-X-Name-First: Nico
Author-X-Name-Last: Heerink
Author-Name: Xianlei Ma
Author-X-Name-First: Xianlei
Author-X-Name-Last: Ma
Title: The effect of land tenure governance on technical efficiency: evidence from three provinces in eastern China
Abstract: 
 This study aims to identify the mechanisms through which land tenure governance affects the technical efficiency of grain production in an integrated framework and to examine the impacts of the public governance, village self-governance, and relational governance of land tenure on the technical efficiency of contracted land and rented-in land. Farm-level survey data collected from Liaoning, Jiangxi, and Jiangsu provinces covering the years of 2014 and 2015 is used for the empirical analysis. The findings indicate that (i) public governance associated with land certification significantly increases the technical efficiency of grain production; (ii) village self-governance and administrative land reallocations can serve as substitutes for the land rental market in optimizing the distribution of land resources and improving technical efficiency; and (iii) compared to multi-year transfer contracts, both annual and open-ended transfer contracts have negative impacts on technical efficiency.
Journal: Applied Economics
Pages: 2337-2354
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1543941
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1543941
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2337-2354




Template-Type: ReDIF-Article 1.0
Author-Name: John W. Duffield
Author-X-Name-First: John W.
Author-X-Name-Last: Duffield
Author-Name: Christopher J. Neher
Author-X-Name-First: Christopher J.
Author-X-Name-Last: Neher
Author-Name: David A. Patterson
Author-X-Name-First: David A.
Author-X-Name-Last: Patterson
Title: Natural resource valuation with a tribal perspective: a case study of the Penobscot Nation
Abstract: 
 The unique settings of tribal lands and preferences of tribal members can complicate the effective application of standard natural resource use valuation tools within these tribal settings. We present a study which utilised referendum format contingent valuation methods to value foregone tribal use of the dioxin-contaminated Penobscot River in Maine. The Penobscot Nation’s prior experience in using referendums to evaluate cash settlement offers provides a unique setting for this application. The valuation responses pass a scope test and are consistent with a priori expectations of economic theory as well as individual attitudes and beliefs. Implicit discount rates based on the valuation of two clean-up periods are plausible. The response model indicates that cultural motives are a significant basis of foregone use values. While each tribal setting presents unique characteristics and challenges, the presented application demonstrates how carefully applied standard valuation tools, when appropriately designed to account for and incorporate tribal history, settings, and perspective, can yield defensible estimates of resource valuation.
Journal: Applied Economics
Pages: 2377-2389
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1543942
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1543942
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2377-2389




Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandr V. Gevorkyan
Author-X-Name-First: Aleksandr V.
Author-X-Name-Last: Gevorkyan
Title: Exchange market pressure and primary commodity – exporting emerging markets
Abstract: 
 This paper studies short-term sensitivity between exchange market pressure and various domestic and external factors in primary commodity-exporting emerging markets. The paper focuses on the top country-commodity groups in sugar, cereal, fuels, ores and coffee during the pre-peak and post-peak commodity price periods across floating and pegged exchange rate regimes, using the price of crude oil as a general benchmark. Employing a panel model and panel VAR analysis, the paper finds the heterogeneity of response patterns unique to country-commodity groups and exchange rate regimes. According to the results, in flexible regimes, volatility occurs via the foreign exchange market, interest rates, and domestic credit cycles, feeding into the social costs for structurally weaker economies. Hard exchange-rate pegs often result in a drain on international reserves as the terms of trade deteriorate following post-price peaks, leading to unpopular depreciation. These results accentuate concerns over uneven international trade patterns, an open economy’s short-term foreign exchange policy, and speculative capital flows. Such sensitivity has broad implications for macroeconomic balance and the sustainability of implied exchange rate targets in the presence of a foreign exchange constraint across emerging markets.
Journal: Applied Economics
Pages: 2390-2412
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545077
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545077
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2390-2412




Template-Type: ReDIF-Article 1.0
Author-Name: Z M Dai
Author-X-Name-First: Z M
Author-X-Name-Last: Dai
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Title: Research on equity adjustment, agency costs and commercial bank performance: experimental evidence from China
Abstract: 
 This article studies the impact of options to adjust the performance of commercial banks from agency costs. In the shareholding structure of the adjustment process, considering changes in agency costs, only in agency costs no more than the commercial banks when new results, the company will have to adjust agent the cost of power stealth measure more just by reflecting the size of the incremental results. In addition, equity restructuring costs are the basis of agency governance and ownership structure has an important impact on agency costs. Through a few selected China 14 listed commercial banks’ 2007–2012 data, we show that the impact of performance of commercial banks on the proportion of the company’s largest shareholders is generally more significant; however, the impact of equity restriction on commercial banks was not as significant, as seen from the application of balanced panel data model analysis and the test results. However, the agency costs of commercial bank performance were significant also in a general state, indicating that equity adjustment activities of commercial banks’ cost perspective agency under the commercial bank performance significant changes are not large.
Journal: Applied Economics
Pages: 2413-2421
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545078
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545078
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2413-2421




Template-Type: ReDIF-Article 1.0
Author-Name: Mathieu Bunel
Author-X-Name-First: Mathieu
Author-X-Name-Last: Bunel
Author-Name: Elisabeth Tovar
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Tovar
Title: Does accessibility to local public employment agencies matter? Answers from a French quasi-experiment
Abstract: 
 We question whether accessibility to local public employment agencies impacts exits from unemployment. We deal with the potential endogeneity of the residential location of jobseekers by using the unanticipated creation of a new agency in the French region of Lyon as a quasi-natural experiment. We use exhaustive and geo-located individual data on jobseekers and local public employment agencies. Contrary to past evidence based on aggregated data, we find no evidence that jobseekers with improved accessibility to the local public employment services experience an improvement of their probability of exiting unemployment. We however find evidence of transitory organizational effects. These findings strongly question the costly strategy of a fine distribution of local public employment agencies across the territory while suggesting that institutional issues are key.
Journal: Applied Economics
Pages: 2422-2435
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545079
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545079
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2422-2435




Template-Type: ReDIF-Article 1.0
Author-Name: Zhe Huang
Author-X-Name-First: Zhe
Author-X-Name-Last: Huang
Author-Name: Franck Martin
Author-X-Name-First: Franck
Author-X-Name-Last: Martin
Title: Pairs trading strategies in a cointegration framework: back-tested on CFD and optimized by profit factor
Abstract: 
 Statistical arbitrage is based on pairs trading of mean-reverting returns. We used cointegration approach and ECM-DCC-GARCH to construct 98 pairs of 152 stocks of 3 currencies. Stocks trading is done by Contract for Difference (CFD), a financial derivative product which facilitates short selling and provides a leverage up to 25 times. To measure the performance of a leveraged strategy, we introduced the profit factor which is the annualized return rate per unit risk. And the historical risk is measured by maximum drawdown. We compared three main strategies: percentage, standard deviation of cointegration long-term residuals and Bollinger Bands (dynamic standard deviation), with and without double confirmation of short-term standard deviation modelled by ECM-DCC-GARCH. Each of the three main strategies is optimized by two optimizers: absolute profit and profit factor. The optimization period goes from 2012–01-01 to 2014–12-31, and validation period is from 2015–01-01 to 2016–06-01. Our results showed that the USD Bollinger Bands strategy without double confirmation and optimized by profit factor, outperformed other strategies and provided the highest annualized return rate per unit risk; 32% of our sample pairs ended up in loss, and 94% of which are explained by a cointegration break during the testing period.
Journal: Applied Economics
Pages: 2436-2452
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545080
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545080
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2436-2452




Template-Type: ReDIF-Article 1.0
Author-Name: Qin Xiao
Author-X-Name-First: Qin
Author-X-Name-Last: Xiao
Author-Name: Steven Devaney
Author-X-Name-First: Steven
Author-X-Name-Last: Devaney
Title: Are mortgage lenders guilty of the housing bubble? A UK perspective
Abstract: 
 Existing theoretical models of house prices and credit rely on continuous rationality of consumers, an assumption that has been frequently questioned in recent years. Meanwhile, empirical investigations of the relationship between prices and credit are often based on national-level data, which is then tested for structural breaks and asymmetric responses, usually with subsamples. Earlier author argues that local markets are structurally different from one another and so the coefficients of any estimated housing market model should vary from region to region. We investigate differences in the price–credit relationship for 12 regions of the UK. Markov-switching is introduced to capture asymmetric market behaviours and turning points. Results show that credit abundance had a large impact on house prices in Greater London and nearby regions alongside a strong positive feedback effect from past house price movements. This impact is even larger in Greater London and the South East of England when house prices are falling, which are the only instances where the credit effect is more prominent than the positive feedback effect. A strong positive feedback effect from past lending activity is also present in the loan dynamics. Furthermore, bubble probabilities extracted using a discrete Kalman filter neatly capture market turning points.
Journal: Applied Economics
Pages: 4271-4290
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156231
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156231
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4271-4290




Template-Type: ReDIF-Article 1.0
Author-Name: H. Malloch
Author-X-Name-First: H.
Author-X-Name-Last: Malloch
Author-Name: R. Philip
Author-X-Name-First: R.
Author-X-Name-Last: Philip
Author-Name: S. Satchell
Author-X-Name-First: S.
Author-X-Name-Last: Satchell
Title: Decomposing the bias in time-series estimates of CAPM betas
Abstract: 
 We identify two sources of bias arising from time-series regression used to compute beta. This bias arises due to the classical error in variables problem and a ‘mechanical interaction’ which exists when the index comprises the asset of interest. Assuming that the market is proxied by a fixed-weight index, we demonstrate that the relative weighting of an asset within the index, and/or the magnitude of its idiosyncratic risk, directly biases the beta estimate for the individual stock and also for all stocks within the index. Via simulations, we show that the problem is most pronounced for markets with a small number of highly concentrated assets. Finally, we propose a procedure to reduce this bias and apply the methods to equity data.
Journal: Applied Economics
Pages: 4291-4298
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156233
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156233
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4291-4298




Template-Type: ReDIF-Article 1.0
Author-Name: Giuliano Bianchi
Author-X-Name-First: Giuliano
Author-X-Name-Last: Bianchi
Title: The effect of price targets on the composition of CEO pay
Abstract: 
 This article analyzes the impact of price targets from the IBES Detail Price History Target database on CEO compensation retained from Execucomp. The two databases are merged at fiscal year frequency and an OLS regression with fixed effect is used to analyze the impact of price target on CEO compensation. The analysis reveals that analysts’ price targets affect top executives’ compensation: when analysts predict a growth in the share price for a company, the compensation package tilts towards stock options, when analysts forecast a drop in the share price, the compensation package tilts towards cash-based compensation and restricted stocks. I argue that the result is more aligned with the managerial power model of compensation (which assumes the board of directors maximizes managers’ compensation) than with the arm’s length bargaining model (that states that managers’ compensation is set to maximize shareholders’ profit).
Journal: Applied Economics
Pages: 4299-4311
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156234
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156234
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4299-4311




Template-Type: ReDIF-Article 1.0
Author-Name: Ren Zhang
Author-X-Name-First: Ren
Author-X-Name-Last: Zhang
Author-Name: Arnold Polanski
Author-X-Name-First: Arnold
Author-X-Name-Last: Polanski
Title: Volatility–volume co-movements: evidence from China metal markets
Abstract: 
 This article investigates the interactional relationship between price volatility and futures trading activity for three heavily traded metal products on the Shanghai Metal Exchange and the Shanghai Futures Exchange. Using models based on vector autoregression and generalized method of moments, we show, in particular, that futures trading activity has a strong impact on both spot and futures price volatility in copper and aluminium markets. Futures trading activity leads spot market volatility in copper and aluminium markets which suggests that futures markets have a destabilizing effect. In order to disentangle the effect of different traders’ types on asset price movements, we decompose futures trading into speculators’ and hedgers’ trading and investigate their contributions to volatility. As a robustness check, we investigate the impact of endogenous structural breaks on the interactional relationship between price volatility and futures trading.
Journal: Applied Economics
Pages: 4312-4336
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156235
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156235
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4312-4336




Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Miyakoshi
Title: International aid from the recipient perspective: public or private good input assistance?
Abstract: 
 This article proposes a theoretical model from the recipient perspective that considers what type of assistance a donor country should provide: public good assistance or private good assistance. We investigate the effects of migration and free riders under both types of assistance. We empirically apply this model to the rapidly growing economies and a large official development assistance disbursement for East Asia.
Journal: Applied Economics
Pages: 4337-4349
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156236
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156236
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4337-4349




Template-Type: ReDIF-Article 1.0
Author-Name: Tarcisio da Graça
Author-X-Name-First: Tarcisio
Author-X-Name-Last: da Graça
Author-Name: Robert Masson
Author-X-Name-First: Robert
Author-X-Name-Last: Masson
Title: A structural event study for M&amp;As: an application in corporate governance
Abstract: 
 We apply structural event study methodology in the context of corporate governance to account for the interaction of two merger and acquisition (M&amp;A) effects: synergy (total value) and dominance (bargaining power). The interaction of these effects simultaneously determines the parties’ abnormal returns. We posit that M&amp;A synergy effects correspond to changes in agency costs between target’s management and target’s shareholders, while the dominance effects correspond to the balance of power between acquirer and target during negotiations. Our structural estimates suggest that more stable or entrenched directors generate higher value during normal operations but are softer negotiators when their firm becomes an acquisition target.
Journal: Applied Economics
Pages: 4350-4365
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156237
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156237
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4350-4365




Template-Type: ReDIF-Article 1.0
Author-Name: Adusei Jumah
Author-X-Name-First: Adusei
Author-X-Name-Last: Jumah
Author-Name: Robert M. Kunst
Author-X-Name-First: Robert M.
Author-X-Name-Last: Kunst
Title: Optimizing time-series forecasts for inflation and interest rates using simulation and model averaging
Abstract: 
 Motivated by economic-theory concepts – the Fisher hypothesis and the theory of the term structure – we consider a small set of simple bivariate closed-loop time-series models for the prediction of price inflation and of long- and short-term interest rates. The set includes vector autoregressions (VAR) in levels and in differences, a cointegrated VAR and a non-linear VAR with threshold cointegration based on data from Germany, Japan, UK and the US. Following a traditional comparative evaluation of predictive accuracy, we subject all structures to a mutual validation using parametric bootstrapping. Ultimately, we utilize the recently developed technique of Mallows model averaging to explore the potential of improving upon the predictions through combinations. While the simulations confirm the traded wisdom that VARs in differences optimize one-step prediction and that error correction helps at larger horizons, the model-averaging experiments point at problems in allotting an adequate penalty for the complexity of candidate models.
Journal: Applied Economics
Pages: 4366-4378
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1158915
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158915
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4366-4378




Template-Type: ReDIF-Article 1.0
Author-Name: Julien Chevallier
Author-X-Name-First: Julien
Author-X-Name-Last: Chevallier
Author-Name: Stéphane Goutte
Author-X-Name-First: Stéphane
Author-X-Name-Last: Goutte
Title: Cross-country performance of Lévy regime-switching models for stock markets
Abstract: 
 This article compares the performance of regime-switching Lévy models across sixteen (16) international stock markets. From a cross-country perspective, the empirical application is dedicated to the study of equity markets in the Americas, Asia and Europe. The results are of interest for a financial audience in order to document the sensitivity of stock indexes to the intensity of jumps, under changing economic regimes (expansion or recession). We pick up singularities in Japan and Malaysia compared to other countries and regions of the world.
Journal: Applied Economics
Pages: 111-137
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192275
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192275
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:111-137




Template-Type: ReDIF-Article 1.0
Author-Name: Jonghak Sun
Author-X-Name-First: Jonghak
Author-X-Name-Last: Sun
Title: The effect of information technology on IT-facilitated coordination, IT-facilitated autonomy, and decision-makings at the individual level
Abstract: 
 The effect of information technology (IT) has been a central concern to economics of IT ever since it has been viewed as an important resource to improve firm productivity. Although significant research progress has been made on the impacts of IT use at the individual level, the mechanism of how IT use increases individual performance at work has not been fully explored. In an attempt to examine the IT effects on performance, we focus on individual work productivity gained from IT use. Following the discussion of previous works, we develop a research model, describing that the ubiquitous IT transforms the way individual employers’ work in organizations, and facilitates working processes and practices that may affect the decision-making of individual performance.As a result of testing the research model, we found not only that IT use does have a direct effect on the quality of decision-making in organizations, but that this effect is partially mediated by the extent of IT-facilitated autonomy and of IT-facilitated coordination. These findings suggest that the effects of IT use on decision-makings in an organization may be attributed, in part, to its beneficial use in coordination and tendency to foster more discretion.
Journal: Applied Economics
Pages: 138-155
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192276
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192276
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:138-155




Template-Type: ReDIF-Article 1.0
Author-Name: Sophie Clot
Author-X-Name-First: Sophie
Author-X-Name-Last: Clot
Author-Name: Charlotte Y. Stanton
Author-X-Name-First: Charlotte Y.
Author-X-Name-Last: Stanton
Author-Name: Marc Willinger
Author-X-Name-First: Marc
Author-X-Name-Last: Willinger
Title: Are impatient farmers more risk-averse? Evidence from a lab-in-the-field experiment in rural Uganda
Abstract: 
 Based on data from a field-experiment in rural Uganda, we show that impatient farmers are more risk-averse than patient farmers. We relied on a simplified version of the Convex Time Budget (CTB) method to elicit farmers’ time preferences and on an independent method for eliciting their risk-preferences. We report two important findings. First, we show that our simplified CTB method applied to farmers from Uganda replicates the key findings of Andreoni and Sprenger’s lab experiments that involved student subjects. Second, we establish the existence of a negative correlation between risk tolerance and impatience, based on two independent measures.
Journal: Applied Economics
Pages: 156-169
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192277
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192277
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:156-169




Template-Type: ReDIF-Article 1.0
Author-Name: Colin O’hare
Author-X-Name-First: Colin
Author-X-Name-Last: O’hare
Author-Name: Youwei Li
Author-X-Name-First: Youwei
Author-X-Name-Last: Li
Title: Modelling mortality: are we heading in the right direction?
Abstract: 
 Predicting life expectancy has become of upmost importance in society. Pension providers, insurance companies, government bodies and individuals in the developed world have a vested interest in understanding how long people will live for. This desire to better understand life expectancy has resulted in an explosion of stochastic mortality models many of which identify linear trends in mortality rates by time. In making use of such models for forecasting purposes, we rely on the assumption that the direction of the linear trend (determined from the data used for fitting purposes) will not change in the future, recent literature has started to question this assumption. In this article, we carry out a comprehensive investigation of these types of models using male and female data from 30 countries and using the theory of structural breaks to identify changes in the extracted trends by time. We find that structural breaks are present in a substantial number of cases, that they are more prevalent in male data than in female data, that the introduction of additional period factors into the model reduces their presence, and that allowing for changes in the trend improves the fit and forecast substantially.
Journal: Applied Economics
Pages: 170-187
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192278
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192278
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:170-187




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Huang
Author-X-Name-First: Wei
Author-X-Name-Last: Huang
Title: China’s secondary privatization: new evidence on controlling shareholders tunnelling
Abstract: 
 This article utilizes the 2005 split-share structure reform (SSSR) in China as a natural experiment and conducts difference-in-differences (DID) tests to analyse corporate governance changes among Chinese SOEs compared to POEs. We show that tunnelling significantly reduced in both POEs and SOEs after the SSSR. More importantly, we find a significant and positive ‘privatization effect’ on SOEs’ tunnelling activities during the post-reform period suggesting the reductions of tunnelling were smaller among SOEs than POEs following the SSSR. In contrast, excess returns around the SSSR indicate that investors expected a negative ‘privatization effect’ on SOEs’ tunnelling. These findings suggest that the quality of corporate governance did not improve among SOEs as a result of the secondary privatization as the stock market expected without fundamental changes to firm ownership and control following the SSSR. The benefits of privatization accrue to the government controlling shareholders rather than minority investors.
Journal: Applied Economics
Pages: 188-201
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192279
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192279
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:188-201




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Emmanuel Lukban Angeles
Author-X-Name-First: Joseph Emmanuel Lukban
Author-X-Name-Last: Angeles
Title: Assessing impact of regulatory risk on shareholders’ wealth
Abstract: 
 Research indicates that regulatory risk increases required return on investment by investors and causes underinvestment in industries with high sunk costs. The effects of regulatory changes may be measured by estimating the abnormal returns associated with the event. The results may suggest to regulators what should be encouraged or avoided. This article utilizes a fixed effects regression to examine abnormal returns from changes in Philippine nationalization regulations. The results are consistent with extant literature. Supreme Court decisions, which increased uncertainty and regulatory risk, produced negative abnormal returns. The initial release of draft implementing rules did not produce statistically significant effects, but a succeeding draft favouring liberalization, produced positive abnormal returns.
Journal: Applied Economics
Pages: 202-212
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194962
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194962
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:202-212




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Joseph Minviel
Author-X-Name-First: Jean Joseph
Author-X-Name-Last: Minviel
Author-Name: Laure Latruffe
Author-X-Name-First: Laure
Author-X-Name-Last: Latruffe
Title: Effect of public subsidies on farm technical efficiency: a meta-analysis of empirical results
Abstract: 
 Investigating the impact of public subsidies on farm technical efficiency is becoming a critical issue in applied agricultural policy analysis. This article presents a meta-analysis of empirical results on this issue, based on data gathered from a systematic literature review. We find that, in the empirical literature, subsidies are commonly negatively associated with farm technical efficiency. Meta-regression estimation results show that the direction (significantly negative, significantly positive or non-significant) of the observed effects is sensitive to the way subsidies are modelled in the empirical studies.
Journal: Applied Economics
Pages: 213-226
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194963
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194963
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:213-226




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1203089
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203089
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:i-i




Template-Type: ReDIF-Article 1.0
Author-Name: Ann Marsden
Author-X-Name-First: Ann
Author-X-Name-Last: Marsden
Author-Name: Hugh Sibly
Author-X-Name-First: Hugh
Author-X-Name-Last: Sibly
Title: Third-degree price discrimination in a short-stay accommodation industry
Abstract: 
 This article analyses the pricing in the short-stay accommodation industry in Tasmania. It utilizes a novel 2008 survey of Tasmanian short-stay accommodation firms in which business managers were asked about their perception of the elasticity of their firm’s demand in each of the market segments that their firm supplied. This direct observation of elasticity allows us to demonstrate that firms’ price across market segments act in a manner consistent with the Lerner index and the theory of third-degree price discrimination. Further we show, in line with expectations based on the literature, that increased quality of the accommodation lowers the elasticity of demand, while the elasticity of demand is higher in winter. Surprisingly, Internet sales channels do not exhibit a different elasticity of demand to other sales channels.
Journal: Applied Economics
Pages: 5166-5182
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302063
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302063
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5166-5182




Template-Type: ReDIF-Article 1.0
Author-Name: Arturo Bujanda
Author-X-Name-First: Arturo
Author-X-Name-Last: Bujanda
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Title: Impacts of transportation infrastructure on single-family property values
Abstract: 
 New or long-standing public infrastructure such as highways, airports, and ports of entry (POE) can increase adjacent property values generating a value premium for private developers and adjacent property owners. States and local governments aim to determine the geographic footprint and anticipate the economic value created by transportation infrastructure proximity and accessibility since it represents an opportunity to capture some infrastructure costs. Hence, it is desirable to understand the degree of correlation between transportation infrastructure proximity and changes in real property values in a spatial context particularly when defining economic development zones where transportation investments are planned and where governments expect to recover some of the infrastructure cost from increases in real property values. This research applies geographically weighted regression (GWR) analysis to determine the geographic footprint and quantify the impacts of transportation infrastructure proximity and accessibility on real property values in El Paso, Texas using a 2013 cross-sectional data set. The presence of spatial nonstationarity and heterogeneity confirms that transportation infrastructure proximity and accessibility might generate premiums on real property values, but that such premiums are not always positive and are occasionally negative. GWR shows that benefits from a transportation facility can be capitalized by non-adjacent parcels. Finally, GWR maps can help better policy development by estimating how much value is added by infrastructure proximity and accessibility throughout particular locations.
Journal: Applied Economics
Pages: 5183-5199
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302064
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302064
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5183-5199




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre-Alexandre Mahieu
Author-X-Name-First: Pierre-Alexandre
Author-X-Name-Last: Mahieu
Author-Name: François-Charles Wolff
Author-X-Name-First: François-Charles
Author-X-Name-Last: Wolff
Author-Name: Jason Shogren
Author-X-Name-First: Jason
Author-X-Name-Last: Shogren
Author-Name: Pascal Gastineau
Author-X-Name-First: Pascal
Author-X-Name-Last: Gastineau
Title: Interval bidding in a distribution elicitation format
Abstract: 
 Interval bidding allows people to report a range of values for a non-market good. Herein, we allow people to choose their distribution over this range endogenously. We consider a multiplicative error model explaining the willingness to pay (WTP) which is estimated using a feasible generalized least squares estimator. We apply our framework to a representative sample of the French population who were asked about the valuation of a bear conservation programme. We find that most participants prefer stating their WTP as a range rather than a point, but the shape of the distribution greatly varies across people. Our results support the use of the interval bidding with endogenous distribution approach in valuation studies.
Journal: Applied Economics
Pages: 5200-5211
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302065
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302065
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5200-5211




Template-Type: ReDIF-Article 1.0
Author-Name: Komivi Afawubo
Author-X-Name-First: Komivi
Author-X-Name-Last: Afawubo
Author-Name: Samuel Mathey
Author-X-Name-First: Samuel
Author-X-Name-Last: Mathey
Title: The effectiveness of aid on savings and investment in Sub-Saharan Africa: do volatility and institutional quality matter?
Abstract: 
 The effectiveness of aid is somewhat subject to its volatility. This study investigates the impact of aid volatility, especially on savings and investment, with a particular focus on the role of institutional quality in 45 Sub-Saharan African (SSA) countries over the period from 1990 to 2013. We used the Generalized Method of Moments (GMM) technique combined with a measure of volatility, namely an averaged data method involving six 4-year sub-periods. Our results suggest that while aid is positively associated with savings and investment, its volatility is harmful to savings and investment. However, when higher quality institutions exist, the volatility of aid has a less negative impact on savings and investment.The policy implications are diverse; first, donors and SSA aid-dependent countries need to take into account the diversity of shocks to which aid can respond in mitigating its unpredictability. Secondly, SSA countries should be encouraged to establish the conditions for better quality institutions to mitigate the negative effects of the volatility of aid on macroeconomic aggregates such as savings and investment.
Journal: Applied Economics
Pages: 5212-5230
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302066
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302066
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5212-5230




Template-Type: ReDIF-Article 1.0
Author-Name: Anna P. I. Vong
Author-X-Name-First: Anna P. I.
Author-X-Name-Last: Vong
Author-Name: Duarte Trigueiros
Author-X-Name-First: Duarte
Author-X-Name-Last: Trigueiros
Title: Evidence on the effect of ‘Claw-Back’ provisions on IPO share allocation and underpricing in Hong Kong
Abstract: 
 The article examines share allocation practices of over 300 initial public offerings (IPOs) in Hong Kong during the years immediately following the enacting of a ‘Claw-Back’ provision for IPO share reallocation. The examination of exhaustive micro-level data reveals that small (uninformed, retail) investors earn higher initial returns than large investors. Before the enacting of the ‘Claw-Back’ provision, small investors were unfavourably treated in relation to large investors. The pattern now prevailing in the proportion of shares allocated to small and large investors also differs from that observed previously. When attempting to isolate the determinants of IPO underpricing in Hong Kong, the article also shows that both the ‘informed demand’ hypothesis and the signalling effect of underwriters’ reputation are significant determinants of underpricing. Such result, not visible when pooled OLS regressions are used, becomes apparent through the use of a system of simultaneous equations.
Journal: Applied Economics
Pages: 5231-5244
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302067
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302067
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5231-5244




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Collins
Author-X-Name-First: Matthew
Author-X-Name-Last: Collins
Author-Name: John Curtis
Author-X-Name-First: John
Author-X-Name-Last: Curtis
Title: Value for money in energy efficiency retrofits in Ireland: grant provider and grant recipients
Abstract: 
 The Sustainable Energy Authority of Ireland (SEAI) administers the Better Energy Homes scheme to provide a financial incentive for home owners to engage in energy efficiency retrofits. This study analyses data from the scheme and Building Energy Rating data for participants to the scheme to examine the value for money achieved by households. In addition, this research identifies which retrofit combinations provide greatest value for money, in terms of energy efficiency gains, for the grant provider. We utilize an error-in-variables approach to model the variation in benefits accruing to households of varying characteristics. We find that household and grant provider surplus can be maximized in the short term by retrofitting less energy efficient and larger homes, timber or steel frame homes and houses rather and apartments. The types of retrofits leading to the greatest surplus for both household and grant provider include cavity wall insulation paired with either a boiler with heating controls or heating controls only retrofit.
Journal: Applied Economics
Pages: 5245-5267
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302068
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302068
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5245-5267




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Bachmann
Author-X-Name-First: Ronald
Author-X-Name-Last: Bachmann
Author-Name: Hanna Frings
Author-X-Name-First: Hanna
Author-X-Name-Last: Frings
Title: Monopsonistic competition, low-wage labour markets, and minimum wages – An empirical analysis
Abstract: 
 This article investigates the degree of monopsony power of employers in different industries against the background of a statutory minimum wage introduction in Germany in January 2015. A semi-structural estimation approach is employed based on a dynamic model of monopsonistic competition. The empirical analysis relies on a linked employer–employee data set which allows to control for observed heterogeneity both on the worker and on the firm side. The results show important differences in monopsonistic competition among low-wage industries: While retailing, the hotel and restaurant industry as well as agriculture can be described as monopsonistic labour markets, this is not true for other services and manufacturing of food products. From a policy point of view, the introduction of a uniform minimum wage may therefore lead to different employment reactions in industries with a similar minimum wage bite.
Journal: Applied Economics
Pages: 5268-5286
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302069
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302069
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5268-5286




Template-Type: ReDIF-Article 1.0
Author-Name: Plamen Nikolov
Author-X-Name-First: Plamen
Author-X-Name-Last: Nikolov
Author-Name: Nusrat Jimi
Author-X-Name-First: Nusrat
Author-X-Name-Last: Jimi
Title: What factors drive individual misperceptions of the returns to schooling in Tanzania? Some lessons for education policy
Abstract: 
 Evidence on educational returns and the factors that determine the demand for schooling in developing countries is extremely scarce. Building on previous studies that show individuals underestimating the returns to schooling, we use two surveys from Tanzania to estimate both the actual and perceived schooling returns and subsequently examine what factors drive individual misperceptions regarding actual returns. Using OLS and instrumental variable methods, we find that each additional year of schooling in Tanzania increases earnings, on average, by 9 to 11%. We find that on average individuals underestimate returns to schooling by 74 to 79% and three factors are associated with these misperceptions: income, asset, poverty and educational attainment. Shedding light on what factors relate to individual beliefs about educational returns can inform policy on how to structure effective interventions in order to correct individual misperceptions.
Journal: Applied Economics
Pages: 4705-4723
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466991
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466991
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4705-4723




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoli L. Etienne
Author-X-Name-First: Xiaoli L.
Author-X-Name-Last: Etienne
Author-Name: Scott H. Irwin
Author-X-Name-First: Scott H.
Author-X-Name-Last: Irwin
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Title: Speculation and corn prices
Abstract: 
 It is commonly asserted that speculative trading activities are largely behind the high and volatile food commodity price behaviour since 2006. In this article, we revisit this hypothesis by investigating how different speculative measures affect our conclusion on the role of speculation. Four speculative measures are considered, including index trading activities, non-commercial net long positions, Working’s speculative index, and an excessive speculative volume index. These four measures imply different underlying hypotheses about the role of speculation on commodity price movements and encompass most of the measures used in the recent literature on the role of speculation in commodity markets. Using a structural vector autoregressive (SVAR) model, we show a mixed impact of speculative trading on corn prices depending on the measure used. While shocks to index trading activities and excess speculation as measured by Working’s T have either zero or negative impact on corn prices, a positive shock to non-commercial net positions or the Tadesse index significantly increases the price of corn. However, the magnitude of the impact is not large, at most about $0.30 per bushel in real terms. Our findings are robust to structural breaks, alternative ordering of variables, and an alternative specification of the model.
Journal: Applied Economics
Pages: 4724-4744
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466992
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466992
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4724-4744




Template-Type: ReDIF-Article 1.0
Author-Name: Wenjun Feng
Author-X-Name-First: Wenjun
Author-X-Name-Last: Feng
Author-Name: Yiming Wang
Author-X-Name-First: Yiming
Author-X-Name-Last: Wang
Author-Name: Zhengjun Zhang
Author-X-Name-First: Zhengjun
Author-X-Name-Last: Zhang
Title: Can cryptocurrencies be a safe haven: a tail risk perspective analysis
Abstract: 
 Cryptocurrencies are one of the most promising financial innovations of the last decade. Different from major stock indices and the commodities of gold and crude oil, the cryptocurrencies exhibit some characteristics of immature market assets, such as auto-correlated and non-stationary return series, higher volatility, and higher tail risks measured by conditional Value at Risk (VaR) and conditional expected shortfall (ES). Using an extreme-value-theory-based method, we evaluate the extreme characteristics of seven representative cryptocurrencies during 08 August 2015–01 August 2017. We find that during the sub-period of 01 August 2016–01 August 2017, there are finite loss boundaries for most of the selected cryptocurrencies, which are similar to the commodities, and different from the stock indices. Meanwhile, we find that left tail correlations are much stronger than right tail correlations among the cryptocurrencies, and tail correlations increased after August 2016, suggesting high and growing systematic extreme risks. We also find that cryptocurrencies to be both left tail independent, and cross tail independent with four selected stock indices, which implies part of the safe-haven function of the cryptocurrencies, indicating their ability to be a great diversifier for the stock market as gold, but not enough to be a tail hedging tool like gold.
Journal: Applied Economics
Pages: 4745-4762
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466993
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466993
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4745-4762




Template-Type: ReDIF-Article 1.0
Author-Name: Shui Ki Wan
Author-X-Name-First: Shui Ki
Author-X-Name-Last: Wan
Author-Name: Long Zhao
Author-X-Name-First: Long
Author-X-Name-Last: Zhao
Title: Assessing the role of components of life satisfaction
Abstract: 
 Factors affecting subjective well-being and their gross effect measurement have been widely studied. However, how people derive utility from these factors has not been fully explored. This article provides a way to decompose the gross effect of major determinants on life satisfaction into direct and indirect effects and make inference for the latter. Because the indirect effect is nonlinear in parameters associated with different models in an equation system, it creates a problem in estimating the standard error. Besides, the categorical nature in survey data further introduces bias to the covariance estimation even asymptotically. To address these issues without knowing the form of heteroskedasticity under the null hypothesis, we propose to extend the wild bootstrap procedure in this particular context. Its robustness against various data properties is validated via several simulation experiments. Using three recent waves of World Values Survey, we find that the relative importance of life control has significantly increased recently, and endowing citizens with the right to enjoy their freedoms and liberties is a more effective policy in raising life satisfaction than promoting national income.
Journal: Applied Economics
Pages: 4763-4773
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466994
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466994
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4763-4773




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Olorunfemi Akande
Author-X-Name-First: Joseph Olorunfemi
Author-X-Name-Last: Akande
Author-Name: Farai Kwenda
Author-X-Name-First: Farai
Author-X-Name-Last: Kwenda
Author-Name: Dimu Ehalaiye
Author-X-Name-First: Dimu
Author-X-Name-Last: Ehalaiye
Title: Competition and commercial banks risk-taking: evidence from Sub-Saharan Africa region
Abstract: 
 This study investigates the relationship between competition and the risk-taking attitude of banks. We test how this relationship manifests in the Sub-Saharan African(SSA) region’s commercial banks in light of the competition-fragility view, using the generalized methods of moments. We studied 440 commercial banks in 37 SSA countries over the period 2006–2015. The results provide evidence that supports a positive relationship between competition and banks’ overall risk as well as their credit risk but suggests that off-balance sheet risk reduces with competition. We, therefore, conclude that the propensity to undertake higher risk in a competitive banking environment largely accounts for fragility as argued in the competition-fragility view.
Journal: Applied Economics
Pages: 4774-4787
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466995
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466995
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4774-4787




Template-Type: ReDIF-Article 1.0
Author-Name: Cécile Casteuble
Author-X-Name-First: Cécile
Author-X-Name-Last: Casteuble
Author-Name: Emmanuelle Nys
Author-X-Name-First: Emmanuelle
Author-X-Name-Last: Nys
Author-Name: Philippe Rous
Author-X-Name-First: Philippe
Author-X-Name-Last: Rous
Title: Do bank bondholders price banks’ ability to manage risk/return?
Abstract: 
 In this paper, we empirically investigate whether bank bondholders value risk management, measured as risk-return efficiency (RRE), when pricing bond spreads. Based on a sample of 2,452 bonds issued by 78 European listed banks, for the period 2001–2015, we find evidence that the ability of banks to manage risk affects bond spreads: banks with more capable managers obtain a lower cost of debt. In particular our results show that bank bondholders are even more sensitive to RRE during the crisis period, for relatively poorly rated bonds, for unsecured/subordinated debt, and for long maturity debt. Our findings highlight that bondholders’ monitoring of banks is effective and takes into account the efficiency of risk management during financial and economic downturns, but during sound periods bank bondholders should strengthen their monitoring of risk management.
Journal: Applied Economics
Pages: 4788-4802
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1467552
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467552
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4788-4802




Template-Type: ReDIF-Article 1.0
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Author-Name: Carl Chen
Author-X-Name-First: Carl
Author-X-Name-Last: Chen
Title: The domino effect of credit defaults: test of asymmetric default correlations using realised default data
Abstract: 
 Using the research framework of a domino effect in firms, we first make theoretical contributions by addressing several testable hypotheses regarding asymmetrical default correlations. We then employ Lucas’s method to provide empirical evidence based on realised historical default data in the United States from 1992 to 2013. Our empirical results are consistent with the following notions. First, default correlations increase with the time horizon. Second, firms with low credit quality, small size, illiquidity, and a high beta exhibit higher default correlations. Credit risk management without considering asymmetrical default correlations could underestimate portfolio risk due to default clustering.
Journal: Applied Economics
Pages: 4803-4813
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1467553
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467553
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4803-4813




Template-Type: ReDIF-Article 1.0
Author-Name: Anne Musson
Author-X-Name-First: Anne
Author-X-Name-Last: Musson
Author-Name: Damien Rousselière
Author-X-Name-First: Damien
Author-X-Name-Last: Rousselière
Title: Exploring the effect of crisis on cooperatives: a Bayesian performance analysis of French craftsmen cooperatives
Abstract: 
 The aim of this paper is to understand the economic performance of craftsmen cooperatives during the crisis period. These cooperatives have the distinctive feature of being supply cooperatives. We use an exhaustive dataset for the French craftsmen cooperatives (2004–2014). We estimate Bayesian Translog econometric models in order to underline the impact of the 2008 crisis on these cooperatives. On the one hand, cooperatives’ turnover and economies of scales decrease during the crisis, the effect is lower for elder cooperatives and varies across sectors. On the other hand, there is a convergence towards the mean for the various generations of cooperatives. These findings are robust to alternative econometric specifications.
Journal: Applied Economics
Pages: 2657-2678
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693699
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693699
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2657-2678




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Muhammad Ali Nasir
Author-X-Name-First: Muhammad Ali
Author-X-Name-Last: Nasir
Title: Asymmetric J-curve: evidence from industry trade between U.S. and U.K.
Abstract: 
 Previous research that assessed the impact of exchange rate changes on the trade balance between the U.S. and U.K. assumed the effects are symmetric. In this paper, we add to the literature on the asymmetric J-curve phenomenon by considering the trade balance of 68 two-digit industries that trade between the two countries. We find short-run asymmetric effects of the real dollar-pound rate in almost all industries. However, short-run asymmetric effects were translated into significant long-run asymmetric effects in 25 industries. Indeed, the asymmetric J-curve hypothesis was supported in 18 industries.
Journal: Applied Economics
Pages: 2679-2693
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693700
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693700
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2679-2693




Template-Type: ReDIF-Article 1.0
Author-Name: Wenying Li
Author-X-Name-First: Wenying
Author-X-Name-Last: Li
Author-Name: Chen Zhen
Author-X-Name-First: Chen
Author-X-Name-Last: Zhen
Author-Name: Jeffrey H. Dorfman
Author-X-Name-First: Jeffrey H.
Author-X-Name-Last: Dorfman
Title: Modelling with flexibility through the business cycle: using a panel smooth transition model to test for the lipstick effect
Abstract: 
 Consumer spending typically declines during periods of economic distress, but observers have noted that lipstick purchases appear to increase during recessions, which is often referred to as the lipstick effect. However, the existence of such effect has remained empirically unconfirmed. Using weekly retail scanner data on lipstick sales from 2006 to 2016 in the United States, we applied a Panel Smooth Transition Regression (PSTR) demand model to test the relationship between economic distress and lipstick sales. This flexible demand specification allows regression coefficients to vary as a function of an exogenous macroeconomic variables and fluctuate asymmetrically, non-linearly, and time-varyingly across an unlimited number of regimes. Empirical results show the income elasticity of demand for lipstick decreased rapidly from 0.31 to 0.05 during the 2007–2009 recession, then slowly rebounded to 0.31 by the second quarter of 2014, thus first empirically confirming the existence of the lipstick effect.
Journal: Applied Economics
Pages: 2694-2704
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693701
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693701
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2694-2704




Template-Type: ReDIF-Article 1.0
Author-Name: Yusuf Ekrem Akbas
Author-X-Name-First: Yusuf Ekrem
Author-X-Name-Last: Akbas
Title: The effects of exchange rate pass-through and cost channel on price level: The case of fragile five countries
Abstract: 
 In this study, we investigated whether the exchange rate and the interest rate had an effect on the inflation rate in the fragile five countries between the years of 1996Q4 and 2015Q4. In this context, a model was created to estimate the effect of interest rate and exchange rate on the inflation rate. The methods used in the study take into account cross-section dependence and heterogeneity. As a result of the analysis, it was determined that there was an exchange-rate and interest-rate pass-through effect in the fragile five countries. Moreover, it was found out that the cost channel and price puzzle were effective in Indonesia and South Africa but were not effective in Turkey, Brasil and India.
Journal: Applied Economics
Pages: 2705-2722
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1694133
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1694133
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2705-2722




Template-Type: ReDIF-Article 1.0
Author-Name: James L. Swofford
Author-X-Name-First: James L.
Author-X-Name-Last: Swofford
Title: Uber’s early entry decisions in the US
Abstract: 
 Early entry decisions of the firm are crucial to its success. Ride-sharing businesses developed due to technology and government regulation. With the advent of the ride-sharing technology, firms like Uber, Lyft, etc. were faced with the decision of which markets to enter first. For this paper, a model is developed of a profit-maximizing firm constrained from entering all markets simultaneously. The entry decision of Uber into the 50 most populous US metropolitan statistical areas (MSA) is examined. The results suggest Uber’s entry decision was constrained and affected by both revenue potential and regulation in the local taxi industry.
Journal: Applied Economics
Pages: 2723-2729
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1694633
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1694633
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2723-2729




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyang Wang
Author-X-Name-First: Xiaoyang
Author-X-Name-Last: Wang
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Author-Name: Scott H. Irwin
Author-X-Name-First: Scott H.
Author-X-Name-Last: Irwin
Title: Is the corn futures market noisier? The impact of high frequency quoting
Abstract: 
 The paper pioneers research on high frequency (HF) quoting noise in electronically traded agricultural futures markets. HF quoting – quickly cancelling posted limit orders and replacing them with new ones – emerges as a strategy for liquidity-providing traders. HF quoting can generate noise in price quotes which adds uncertainty to order execution and impairs the informational value of bid and ask prices. It can also lead to the perception that markets cannot be trusted for commercial transactions. Using intraday Best Bid Offer data for 2008–2013 and wavelet-based measures of volatility, we investigate the excess variance and co-movement discrepancies in the bid and ask prices. We find excess HF quoting variance exists. It is the highest at 250-ms scale – 90% higher than the variance implied by a random walk – but declines quickly to 7% at the 32 s scale. But its economic magnitude is negligibly small. Bid and ask price co-movements show a low degree of discrepancy with average correlations at 0.67 at 250 ms and reaching 0.95 at 8 s. All measures indicate that HF quoting noise has declined through the period. Overall, HF quoting has not caused excess variance during the transition to electronic trading in the liquid corn futures market.
Journal: Applied Economics
Pages: 2730-2750
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696450
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696450
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2730-2750




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Jetté-Nantel
Author-X-Name-First: Simon
Author-X-Name-Last: Jetté-Nantel
Author-Name: Wuyang Hu
Author-X-Name-First: Wuyang
Author-X-Name-Last: Hu
Author-Name: Yumei Liu
Author-X-Name-First: Yumei
Author-X-Name-Last: Liu
Title: Economies of scale and mechanization in Chinese corn and wheat production
Abstract: 
 As the growth in Chinese farm productivity slowed down between 2000 and 2010, modernizing agriculture has become a priority of the Chinese government. Given the important role of mechanization and land reform policies in that context, this study investigates farm production in China with a specific emphasis on the potential role of mechanization as well as land and farm consolidation. A production function is estimated using farm household data on corn and wheat production in the Shandong and Hebei provinces. The results allowed us to explore the potential economies of scale across a range of farm size, the impact of land fragmentation, and assess the impact of machinery usage. Our findings suggest that, taken in isolation, the prospect for efficiency gains from mechanization and land reforms appears limited.
Journal: Applied Economics
Pages: 2751-2765
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696933
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696933
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2751-2765




Template-Type: ReDIF-Article 1.0
Author-Name: Yuhan Xue
Author-X-Name-First: Yuhan
Author-X-Name-Last: Xue
Title: Health returns to modern heating: evidence from China
Abstract: 
 This study analyses the health effects of modern heating, using China’s centralized home heating infrastructure as a natural experiment. The underlying health mechanism is that the recipients of modern heating do not need to rely on traditional fuels to heat their homes and thus suffer from less exposure to indoor air pollution. Furthermore, the improved quality of heating leads to health improvements. This article exploits spatial and time variation in the implementation of China’s centralized heating program, utilizing a difference-in-difference framework. Spatial variation takes the form of a discrete geographical cut-off between regions that receive centralized home heating and those that do not. Results show that areas with centralized heating have a 0.13% decrease in perinatal deaths and a decrease of 1.17% in the proportion of low-birth-weight infants. This translates into about 7000 fewer deaths and about 60,000 fewer low-birth-weight infants each year. Hence, there are enormous health benefits to the public provision of modern heat as a substitute for traditional heating methods, which are shown to be injurious to early-life health. These results strongly suggest that policymakers in developing countries should consider promoting cleaner heating methods.
Journal: Applied Economics
Pages: 1059-1073
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349292
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349292
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1059-1073




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Amid Motavallizadeh-Ardakani
Author-X-Name-First: Amid
Author-X-Name-Last: Motavallizadeh-Ardakani
Title: Inequality and growth in the United States: is there asymmetric response at the state level?
Abstract: 
 A previous study that tried to assess the impact of economic growth on income inequality in the U.S. used state-level data and an ARDL panel model to conclude that economic growth worsens income inequality in the U.S. In this article, we use the same data set but an ARDL time-series model applied to each state in the U.S. to show that the above conclusion is only valid in 20 states. Additionally, we use a nonlinear ARDL approach to show that the effects are asymmetric in the short run as well as in the long run. Significant long-run asymmetric effects reveal that in 28 states both an increase and a decrease in real output have worsened income distribution.
Journal: Applied Economics
Pages: 1074-1092
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349293
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349293
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1074-1092




Template-Type: ReDIF-Article 1.0
Author-Name: Amélie Charles
Author-X-Name-First: Amélie
Author-X-Name-Last: Charles
Author-Name: Olivier Darné
Author-X-Name-First: Olivier
Author-X-Name-Last: Darné
Author-Name: Fabien Tripier
Author-X-Name-First: Fabien
Author-X-Name-Last: Tripier
Title: Uncertainty and the macroeconomy: evidence from an uncertainty composite indicator
Abstract: 
 This article proposes a uncertainty composite indicator (UCI) based on three distinct sources of uncertainty (namely financial, political, and macroeconomic) for the US economy on the period 1985–2015. For that, we use a dynamic factor model, summarizing efficiently six individual uncertainty proxies, namely two macroeconomic and financial uncertainty factors based on the unpredictability, a measure of (micro)economic uncertainty, the implied volatility index, the corporate bond spreads, and an index of economic policy uncertainty. We then compare the effects of uncertainty on economic activity when the UCI is used instead of individual uncertainty proxies in structural VAR models. The interest of our UCI is to synthesize theses effects within one measure of uncertainty. Overall, the UCI was able to account for the most important dynamics of uncertainty which play an important role in business cycles.
Journal: Applied Economics
Pages: 1093-1107
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349294
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349294
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1093-1107




Template-Type: ReDIF-Article 1.0
Author-Name: Takeshi Miyazaki
Author-X-Name-First: Takeshi
Author-X-Name-Last: Miyazaki
Title: Examining the relationship between municipal consolidation and cost reduction: an instrumental variable approach
Abstract: 
 This study explores the cost-reduction effects of local government consolidation, using data from Japanese municipalities. We use municipal panel data from Japan for the years 2000, 2005 and 2010, a data set including numerous consolidation cases. Reverse causality between consolidation decisions and size of municipal expenditure is a concern in the voluntary consolidation of local governments. An instrumental variable (IV) methodology is employed to deal with possible endogeneity associated with consolidation decisions. The main finding is that municipal current expenditure per capita increases immediately after consolidation, but then gradually declines. Because consolidation seems to increase per capita expenditure in the absence of the effect of this long-term declining trend, incorporating this trend into estimation is crucial in cost-efficiency analysis of consolidation. It is also shown that conventional panel data regressions yield biased consolidation effects, suggesting the superiority of the IV approach.
Journal: Applied Economics
Pages: 1108-1121
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1352077
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352077
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1108-1121




Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Lassance
Author-X-Name-First: Nathan
Author-X-Name-Last: Lassance
Author-Name: Frédéric Vrins
Author-X-Name-First: Frédéric
Author-X-Name-Last: Vrins
Title: A comparison of pricing and hedging performances of equity derivatives models
Abstract: 
 This article investigates the pricing/hedging conundrum, i.e. the observation of a mismatch between derivatives models’ pricing and hedging performances, that has so far been under-emphasized as the literature tends to focus on increasingly complicated option pricing models, without adequately addressing hedging performance. Hence, we analyse the ability of the Black–Scholes, Practitioner Black–Scholes, Heston–Nandi and Heston models to Delta-hedge a set of call options on the S&amp;P500 index and Apple stock. We extend earlier studies in that we consider the impact of asset dynamics, apply a stringent payoff replication strategy, look at the impact of moneyness at maturity and test for the robustness to the parameters’ calibration frequency and Delta-Vega hedging. The study shows that adding risk factors to a model, as stochastic volatility, should only be considered in light of the data dynamics. Even then, however, more complicated models generally fare poorly for hedging purposes. Hence, a better fit of a model to option prices is not a good indicator of its hedging performance, and so of its ability to describe the underlying dynamics. This can be understood for reasons of over-fitting. Those findings hint to a potentially appealing hedging-based calibration of models’ parameters, rather than the standard pricing-based one.
Journal: Applied Economics
Pages: 1122-1137
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1352080
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352080
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1122-1137




Template-Type: ReDIF-Article 1.0
Author-Name: Tammuz H. Alraheb
Author-X-Name-First: Tammuz H.
Author-X-Name-Last: Alraheb
Author-Name: Amine Tarazi
Author-X-Name-First: Amine
Author-X-Name-Last: Tarazi
Title: Local versus International Crises and Bank Stability: does bank foreign expansion make a difference?
Abstract: 
 We investigate the impact of global and local crises on bank stability in the MENA region and examine the effect of owning bank subsidiaries in other countries. We consider banks that experienced both types of crises during our sample period. Our findings highlight a negative impact of the Global Financial Crisis of 2007–2008 on bank stability but, on the whole, no negative impact of the local crisis. A deeper investigation shows that owning bank subsidiaries outside the home country is a source of increased fragility during normal times, yet a source of higher stability during the local crisis but not during the international crisis. Moreover, owning foreign subsidiaries in one or two world regions is insufficient to neutralize both types of crises, while being present in three or more regions is more stabilizing during a local crisis but also more destabilizing during an international crisis. Our findings contribute to the literature examining bank stability and have several policy implications.
Journal: Applied Economics
Pages: 1138-1155
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1352081
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352081
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1138-1155




Template-Type: ReDIF-Article 1.0
Author-Name: Fidel Gonzalez
Author-X-Name-First: Fidel
Author-X-Name-Last: Gonzalez
Author-Name: Santosh Kumar
Author-X-Name-First: Santosh
Author-X-Name-Last: Kumar
Title: Prenatal care and birthweight in Mexico
Abstract: 
 We estimate the marginal impact of prenatal care (PNC) on birth outcomes in Mexico using nationally representative data on about 14 million births from 2009 to 2014. Given the possible self-selection into PNC, we attempt to identify the causal impact of PNC on birth outcomes by estimating an instrumental variable model. We find positive impacts of increased prenatal visits on birthweight (BW), length and apgar score of the newborn. Moreover, the impacts of PNC on birth outcomes differ by mother’s education, development level of the municipality where the mother resides and BW distribution. We also find suggestive evidence that PNC visits affect birth outcomes through the reduction in pre-term births.
Journal: Applied Economics
Pages: 1156-1170
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1355540
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355540
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1156-1170




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: ebi-ebi
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1365509
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1365509
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:ebi-ebi




Template-Type: ReDIF-Article 1.0
Author-Name: Gianko Michailidis
Author-X-Name-First: Gianko
Author-X-Name-Last: Michailidis
Author-Name: Concepció Patxot
Author-X-Name-First: Concepció
Author-X-Name-Last: Patxot
Author-Name: Meritxell Solé
Author-X-Name-First: Meritxell
Author-X-Name-Last: Solé
Title: Do pensions foster education? An empirical perspective
Abstract: 
 The paper examines the effect of population ageing on public education spending. On the one hand, ageing is expected to have a negative effect on education, as an increasing number of retirees results in ‘intergenerational conflict’ and, hence, the condemnation of education expenditure. On the other hand, ageing, in combination with pay-as-you-go pension systems, offers incentives for the working-age generation to invest in the public education of the young in order to ‘reap’ the benefits (that is, higher income tax/contributions) of their greater future productivity. Empirical evidence derived from the application of a fixed effects approach to panel data for OECD countries shows that the increasing share of elderly people has a non-linear effect on education spending. This indicates a certain degree of intergenerational conflict. Nevertheless, we find that future population ageing, which reinforces the mechanism linking public education and pensions, reflects positively on education expenditure. Furthermore, by disaggregating total education expenditure by educational levels, we observe that this effect is led by levels of non-compulsory education, probably as a reflection of the direct connection to labor productivity.
Journal: Applied Economics
Pages: 4127-4150
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588949
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588949
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4127-4150




Template-Type: ReDIF-Article 1.0
Author-Name: Yuxin Cai
Author-X-Name-First: Yuxin
Author-X-Name-Last: Cai
Author-Name: Jianqiao Hong
Author-X-Name-First: Jianqiao
Author-X-Name-Last: Hong
Title: Dynamic relationship between stock market trading volumes and investor fear gauges movements
Abstract: 
 This article applies multifractal detrended fluctuation analysis (MF-DFA) and multifractal detrended cross-correlation analysis (MF-DCCA) to investigate cross-correlation behaviours between two kinds of stock markets trading volumes and investor fear gauges covering the data of U.S. stock markets from 2 January 2004 to 31 July 2018. The empirical results show that the dynamic relationship between stock markets trading volume fluctuations and different kinds of investor fear gauges are multifractal and find that the dynamic relationship is strongly anti-persistent. Moreover, financial crisis in 2008 has a significant impact on the cross-correlated behaviour, suggesting that stock market trading volume fluctuations and investor fear gauges are more susceptible to each other during the financial crisis period. Through the rolling windows analysis, we also find that the stock markets trading volume fluctuations and different kinds of investor fear gauges are anti-persistent dynamic cross-correlated.
Journal: Applied Economics
Pages: 4218-4232
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588954
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588954
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4218-4232




Template-Type: ReDIF-Article 1.0
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: Xinjie Lu
Author-X-Name-First: Xinjie
Author-X-Name-Last: Lu
Author-Name: Ke Yang
Author-X-Name-First: Ke
Author-X-Name-Last: Yang
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Title: Volatility forecasting: long memory, regime switching and heteroscedasticity
Abstract: 
 In this article, we account for the first time for long memory, regime switching and the conditional time-varying volatility of volatility (heteroscedasticity) to model and forecast market volatility using the heterogeneous autoregressive model of realized volatility (HAR-RV) and its extensions. We present several interesting and notable findings. First, existing models exhibit significant nonlinearity and clustering, which provide empirical evidence on the benefit of introducing regime switching and heteroscedasticity. Second, out-of-sample results indicate that combining regime switching and heteroscedasticity can substantially improve predictive power from a statistical viewpoint. More specifically, our proposed models generally exhibit higher forecasting accuracy. Third, these results are widely consistent across a variety of robustness tests such as different forecasting windows, forecasting models, realized measures, and stock markets. Consequently, this study sheds new light on forecasting future volatility.
Journal: Applied Economics
Pages: 4151-4163
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1589645
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1589645
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4151-4163




Template-Type: ReDIF-Article 1.0
Author-Name: Akbar Marvasti
Author-X-Name-First: Akbar
Author-X-Name-Last: Marvasti
Title: Effect of government regulations on the severity of injuries in fisheries
Abstract: 
 This study analyses the severity of commercial fishing accidents in the Gulf of Mexico using data from the USCG. Estimates from ordered probit models find no statistically significant effect for either the IFQGT program or the Coast Guard Authorization Act of 2010. However, the presence of an NOAA observer on fishing vessels appears to have reduced the severity of injuries during the study period, which can be partially attributed to the success of the USCG vessel safety certification program. Poor weather conditions increase the likelihood of fatality, particularly when a person falls overboard. Information from the interaction effects between poor weather conditions and vessel attributes can be used in designing new commercial fishing vessels to enhance safety.
Journal: Applied Economics
Pages: 4164-4175
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1590525
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1590525
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4164-4175




Template-Type: ReDIF-Article 1.0
Author-Name: Sean M. Dougherty
Author-X-Name-First: Sean M.
Author-X-Name-Last: Dougherty
Author-Name: Octavio R. Escobar
Author-X-Name-First: Octavio R.
Author-X-Name-Last: Escobar
Title: What policies to combat labour informality? Evidence from Mexico
Abstract: 
 Informality often concerns policymakers due to its negative implications on productivity and poverty. In recent years, the extent of informal employment has diverged across Mexican states. Varying informal employment dynamics within a comparable institutional environment offers scope to identify policies that can reduce informality. This paper uses cross-state panel and individual data to examine the determinants of informal employment, exploiting the diverging outcomes across states, industries and time. The results suggest that there is no ‘silver bullet’ to combat informality, yet a package of policies promoting labour skills, encouraging foreign investment, enhancing tax enforcement and deterring corruption can reduce informal employment. Intriguingly, reducing the cost to start a business is found to have a non-linear effect on informal employment, conditional on the prevalence of microenterprises.
Journal: Applied Economics
Pages: 4176-4190
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591597
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591597
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4176-4190




Template-Type: ReDIF-Article 1.0
Author-Name: Heather M. O’Neill
Author-X-Name-First: Heather M.
Author-X-Name-Last: O’Neill
Author-Name: Scott Deacle
Author-X-Name-First: Scott
Author-X-Name-Last: Deacle
Title: All out, all the time? Evidence of dynamic effort in major league baseball
Abstract: 
 This paper presents evidence that effort varies according to players’ positions in the contract cycle using 2007 through 2011 data on Major League Baseball (MLB) non-pitchers eligible for free agency. While controlling for time-invariant player traits, fixed-effect regression modelling produces evidence that MLB players exhibit contract-year increases in adjusted on-base-plus-slugging percentage (OPS+) in the final years of contracts and declines in OPS+ in the initial years of long-term contracts. The estimated contract-year boost is driven disproportionately by the best offensive performances, while estimated shirking effects are concentrated among the weakest. The results are not driven by the hitting performance of defensive specialists, nor do the results change when the econometric model accounts for players who change teams. OPS+ offers advantages over some other offensive statistics (such as RBI) because it depends less on teammate performance and adjusts for differences among home ball parks and the American and National Leagues.
Journal: Applied Economics
Pages: 4191-4202
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591598
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591598
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4191-4202




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Khan
Author-X-Name-First: Muhammad
Author-X-Name-Last: Khan
Author-Name: Jude Eggoh
Author-X-Name-First: Jude
Author-X-Name-Last: Eggoh
Title: Sectoral variability and the foundations of optimal inflation rate
Abstract: 
 The recent monetary search models argue that the real effects of inflation on economic activity can be gauged through relative price variability (RPV). Our study uses a large panel data of 32 developed and emerging European economies to test the relationship between inflation and RPV. We use a panel threshold model to explore the regime-specific effects of inflation on RPV. Our results confirm a non-linear profile of the relationship between inflation and RPV. Consistent with the monetary search models, our results show that the effects of inflation on the RPV are more significant in its low (below 0.792% per annum) and high (beyond 2.064% per annum) regimes. Finally, we also report a strong moderating role of central bank independence (CBI) in the inflation–RPV relationship.
Journal: Applied Economics
Pages: 4203-4217
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591599
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591599
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4203-4217




Template-Type: ReDIF-Article 1.0
Author-Name: Suryanarayan Mohapatra
Author-X-Name-First: Suryanarayan
Author-X-Name-Last: Mohapatra
Author-Name: Sangram Keshari Jena
Author-X-Name-First: Sangram Keshari
Author-X-Name-Last: Jena
Author-Name: Amarnath Mitra
Author-X-Name-First: Amarnath
Author-X-Name-Last: Mitra
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Title: Intellectual capital and firm performance: evidence from Indian banking sector
Abstract: 
 In the aftermath of the 2008 financial crisis, the entire Indian banking industry was paralysed and their performance was shattered by the unfolding of enormous cases of Non-performing Assets (NPA). The study estimates the operating efficiency of 40 Indian banks for 5 years (2011–15) as a proxy of performance measure using the output-oriented DEA-BCC model. We find that nearly 62% of the state-owned banks and 47% of the private banks are inefficient indicating that the inefficient banks need to reduce their inputs or improve their output to become efficient. The study further investigates the relationship between intellectual capital (IC) and bank performance using a truncated regression model. The regression results show that out of the three components of intellectual capital, only human capital efficiency is positively and significantly associated with operational efficiency while structural capital and finance capital have a negative impact on the efficiency of banks. The study concludes that to achieve competitive edge banks should invest in their human capital. The results are robust in the case of financial variables taken as a proxy for performance.
Journal: Applied Economics
Pages: 6054-6067
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645283
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645283
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6054-6067




Template-Type: ReDIF-Article 1.0
Author-Name: Huy Pham
Author-X-Name-First: Huy
Author-X-Name-Last: Pham
Author-Name: Van Nguyen
Author-X-Name-First: Van
Author-X-Name-Last: Nguyen
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Kashif Saleem
Author-X-Name-First: Kashif
Author-X-Name-Last: Saleem
Author-Name: Nisreen Moosa
Author-X-Name-First: Nisreen
Author-X-Name-Last: Moosa
Title: The effects of the Paris climate agreement on stock markets: evidence from the German stock market
Abstract: 
 We investigate the effects of the 2016 Paris Climate Agreement on the German stock market by considering the impact of 20 announcements pertaining to the Agreement on 17 industries. The event study methodology is used for this purpose, together with several robustness tests, such as the nonparametric rank test and non-parametric conditional distribution approach. The change in systematic risk following the announcements is captured by using various risk models. In general, we find that the Paris Climate Agreement is achieving its objectives in the short run. Our results show that the announcements affected polluting industries in terms of risk and return. Furthermore, we observe two distinct diamond risk structures when (1) Conference of the Parties (COP) 21 took place, and (2) the Agreement came into force.
Journal: Applied Economics
Pages: 6068-6075
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645284
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645284
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6068-6075




Template-Type: ReDIF-Article 1.0
Author-Name: Jamal Bouoiyour
Author-X-Name-First: Jamal
Author-X-Name-Last: Bouoiyour
Author-Name: Refk Selmi
Author-X-Name-First: Refk
Author-X-Name-Last: Selmi
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Safe havens in the face of Presidential election uncertainty: A comparison between Bitcoin, oil and precious metals
Abstract: 
 Even though the empirical literature on safe haven properties of different assets with respect to financial risks is increasing, their abilities to safeguard against political risks has not been the subject of large empirical investigations. This paper uses an Empirical Mode Decomposition-based approach to look into the time-varying role of different assets (in particular, oil, precious metals and Bitcoin) as a safe haven against U.S. stocks in times of heightened uncertainty surrounding the outcome of the 2016 U.S. presidential election. Our results suggest that oil can act as an effective safe haven against political risk exposure; but such property varies over time. The abilities of gold and silver to provide positive returns during downturns have been also documented in the medium-and the long-term. Bitcoin also serves as a safe haven against U.S. stock losses but in the short-term. These findings provide useful and relevant information to investors to help ensure better asset allocation in an uncertain environment.
Journal: Applied Economics
Pages: 6076-6088
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645289
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645289
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6076-6088




Template-Type: ReDIF-Article 1.0
Author-Name: Bing Zhang
Author-X-Name-First: Bing
Author-X-Name-Last: Zhang
Title: Individual investor’s limited attention and IPO performance
Abstract: 
 The paper models and verifies the spread and decay of investor’s attention before listing on the stock market by using the Baidu Index as a proxy for investor attention of the frequency of searches. We find that individual investor’s attention has a significant influence on the first-day IPO return. We empirically study the allocation of investor attention among several stocks and discover that the more stocks going public on the same day, the milder and more similar their performance tends to be. This paper is the first to research IPO performance and individual attention.
Journal: Applied Economics
Pages: 6089-6099
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1646404
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646404
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6089-6099




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Whyte
Author-X-Name-First: Stephen
Author-X-Name-Last: Whyte
Author-Name: Robert C. Brooks
Author-X-Name-First: Robert C.
Author-X-Name-Last: Brooks
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: Sexual economic theory & the human mating market
Abstract: 
 In this study, we apply economic principles to the heterosexual human mating market using data on the socio-demographics, biology, attractiveness, sexual behaviour, and reproductive history of 3,261 Australian online dating participants. More specifically, by using survey participants attractiveness ratings as a proxy for market value, we are able to quantitatively explore theories of sexual economics (SET), which conceptualizes sexual access as an economic resource supplied by women in the human mating market. Our study tests this theory further by incorporating heterosexual market substitutes (namely, 953 bisexual and pansexual individuals) to more accurately integrate the relevant supply and demand forces impacting market value and the commodity of sexual access. We find not only that bisexual and pansexual women (but not men) enjoy a market premium (7.3% higher; p < 0.001) relative to their heterosexual counterparts, but that, contrary to SET, women’s market value in our sample does not diminish with age. We further find that in line with theory and evidence from evolutionary studies, men with (proxied) resources realize a higher market value (6.1% higher for every increased level of educational attainment; p < 0.001) than those without. In conclusion, SET is just one possible model that seeks to understand the complex multi-dimensionality of modern human sexuality and reproduction through an economics lens. As the internet and online dating now provide a low-cost conduit for human mating market participants, so to can it facilitate further large sample scientific studies of mating market dynamics such as this.
Journal: Applied Economics
Pages: 6100-6112
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1650886
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1650886
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6100-6112




Template-Type: ReDIF-Article 1.0
Author-Name: Ling Wang
Author-X-Name-First: Ling
Author-X-Name-Last: Wang
Author-Name: Jianqing Ruan
Author-X-Name-First: Jianqing
Author-X-Name-Last: Ruan
Title: Dialect, transaction cost and intra-national trade: evidence from China
Abstract: 
 Growing evidence emphasizes the important role of network effects on bilateral trade. This paper proposes a new factor – dialect difference, which decreases social network across regions, may increase transaction costs and thus shape interregional trade pattern. Taking China as an example, we use a gravity model considering network effects and provincial data from 1997 to 2009 to examine the effect of dialect difference on intra-national trade. We find that dialect difference has a significantly negative effect on interprovincial trade. Moreover, this paper explores the time dimension of the effect of dialect difference. We find that the negative effects of dialect difference on trade have been diminishing over time. Migration and the promotion of Mandarin have increased interregional cultural connections and thus mitigated the negative effects of dialect difference.
Journal: Applied Economics
Pages: 6113-6126
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1657557
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1657557
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6113-6126




Template-Type: ReDIF-Article 1.0
Author-Name: Fabiano Compagnucci
Author-X-Name-First: Fabiano
Author-X-Name-Last: Compagnucci
Author-Name: Andrea Gentili
Author-X-Name-First: Andrea
Author-X-Name-Last: Gentili
Author-Name: Enzo Valentini
Author-X-Name-First: Enzo
Author-X-Name-Last: Valentini
Author-Name: Mauro Gallegati
Author-X-Name-First: Mauro
Author-X-Name-Last: Gallegati
Title: Robotization and labour dislocation in the manufacturing sectors of OECD countries: a panel VAR approach
Abstract: 
 Robots are the most important innovation which has affected the production process in the last three decades. Thanks to the latest advances in technology, they have been able to perform an ever-increasing number of tasks, eventually replacing human work within the whole production process. However, because of the scarcity of suitable data, the extent of this potentially disrupting process is not fully assessed. This paper makes up for the lack of empirical evidence on the effect of robotization on labour dislocation using data collected by the International Federation of Robotics (IFR) on the number of robots installed in the different manufacturing industries of 16 OECD countries over the period 2011–2016. We show that at the industry level a 1% growth in the number of robots reduces the growth rate of worked hours by 0.16, as well as the selling prices and the real values of the compensations of employees. Moreover, we show that a given sector is more likely to be robotized when it is expanding both in terms of relative prices and employee compensations. We conclude that, at least in the selected countries, the introduction of robots plays a key role in slowing down human labour and compensation growth.
Journal: Applied Economics
Pages: 6127-6138
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1659499
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659499
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6127-6138




Template-Type: ReDIF-Article 1.0
Author-Name: Yimin Zhou
Author-X-Name-First: Yimin
Author-X-Name-Last: Zhou
Author-Name: Rui Chen
Author-X-Name-First: Rui
Author-X-Name-Last: Chen
Title: Rational expectations, difference of opinions and asset pricing
Abstract: 
 This article applies the concept of relative overconfidence (the measure of how heavily investors depend on others’ information) to combine the rational expectations equilibrium (REE) and difference of opinions (DO) models. And we discuss the effects of relative overconfidence on asset price efficiency and trading volume. We find that when investors hold assets to maturity, relative overconfidence has no effect on price efficiency and trading volume; however, when investors speculate, relative overconfidence reduces price informativeness and trading volume, because investors will reckon asset prices as more noisy and find it meaningless to speculate on capital gains based on their private information. Our results highlight the role of speculation in differentiating REE and DO models and influencing the effects of overconfidence.
Journal: Applied Economics
Pages: 3331-3337
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420892
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420892
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3331-3337




Template-Type: ReDIF-Article 1.0
Author-Name: Shawn W. Ulrick
Author-X-Name-First: Shawn W.
Author-X-Name-Last: Ulrick
Author-Name: Kevin P. Mongeon
Author-X-Name-First: Kevin P.
Author-X-Name-Last: Mongeon
Author-Name: Michael P. Giannetto
Author-X-Name-First: Michael P.
Author-X-Name-Last: Giannetto
Title: A continuous income-based grade gap decomposition on university course grades
Abstract: 
 The earnings premium for education, and higher education in particular, is well documented. This article examines the college achievement gap between students coming from positions of high and low socio-economic status. Other papers have also looked at this issue, often by employing, at least in part, an Oaxaca decomposition. Past papers artificially divided socio-economic status into binary groups of high and low, in order to employ the decomposition. Socio-economic status is innately a continuous variable. Therefore, we implement a continuous version of the Oaxaca decomposition. Higher socio-economic students are both slightly better prepared in terms of observable characteristics and have better returns to their characteristics than lower socio-economic students. Notable differences across results obtained from the binary and continuous decomposition methods are discussed.
Journal: Applied Economics
Pages: 3388-3404
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420893
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420893
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3388-3404




Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Bartolucci
Author-X-Name-First: Francesco
Author-X-Name-Last: Bartolucci
Author-Name: Misbah T. Choudhry
Author-X-Name-First: Misbah T.
Author-X-Name-Last: Choudhry
Author-Name: Enrico Marelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Marelli
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: GDP dynamics and unemployment changes in developed and developing countries
Abstract: 
 We design a new specification of Okun’s model that takes the following features into account: estimation of the relation in first differences, the possible lagged effect of GDP dynamics on unemployment changes, the persistence of unemployment rate dynamics, the possible different values of Okun coefficients under recession (with respect to periods of increases in GDP), the existence of cross-country institutional and structural differences (i.e. country-specific Okun coefficients), the additional effect on unemployment caused by large adverse shocks such as financial crises.A distinctive feature of this article is its consideration of a large set of countries for which we find differentiated Okun coefficients. Moreover, we focus in particular on the distinction between developed and developing countries, and on the additional impact of financial crises. From an econometric point of view, the model developed belongs in the family of linear mixed-effects models. The estimation method uses an expectation-maximization (EM) algorithm. Our results confirm the general validity of ‘Okun’s law’; they show the Okun coefficient differences between high- and low-income countries; and they evidence an additional impact of some types of financial crisis on the unemployment dynamics of developed economies.
Journal: Applied Economics
Pages: 3338-3356
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420894
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420894
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3338-3356




Template-Type: ReDIF-Article 1.0
Author-Name: Martina Hedvicakova
Author-X-Name-First: Martina
Author-X-Name-Last: Hedvicakova
Title: Unemployment and effects of the first work experience of university graduates on their idea of a job
Abstract: 
 The financial and subsequent economic crisis caused a sharp deterioration in labour market conditions which particularly affected the youth group. Southern nations were affected the most, while e.g. Germany, Austria and the Czech Republic were less affected. 42.3% of university graduates are registered in the Czech Republic Labour Office for longer than 5 months. This article aims to analyse youth unemployment in the European Union (EU) with an emphasis on the Czech Republic, which is below the EU-28 average. Based on the questionnaire survey, employment of university graduates in the labour market was analysed and the following hypothesis was tested: With a change in the status of a future graduate to an employed graduate, their willingness to retreat from their demands to find the required job, changes’. The result of the survey discovered that after finding the first job, there is reduction in graduates’ demands on a job.
Journal: Applied Economics
Pages: 3357-3363
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420895
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420895
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3357-3363




Template-Type: ReDIF-Article 1.0
Author-Name: Bethany Cooper
Author-X-Name-First: Bethany
Author-X-Name-Last: Cooper
Author-Name: Michael Burton
Author-X-Name-First: Michael
Author-X-Name-Last: Burton
Author-Name: Lin Crase
Author-X-Name-First: Lin
Author-X-Name-Last: Crase
Title: Valuing improvements in urban water security: evidence of heterogeneity derived from a latent class model for eastern Australia
Abstract: 
 In many Australian cities the response to drought has included the imposition of mandatory constraints over how water is used by households, often termed ‘water restrictions’. A similar rationing approach has been witnessed in California’s recent drought. The aim of water restrictions is to slow the depletion of water storage but restrictions have also been criticized for the costs they impose on specific water users. In order to gain insight into the potential magnitude of the cost of water restrictions, this study uses a choice experiment to investigate the non-market values for specific attributes associated with the outcomes of drought restrictions. This information was sought to understand the community’s willingness to pay for attributes related to the extent, frequency and duration of water restrictions. The article reports a latent class choice model for a major city in eastern Australia and investigates heterogeneity in preferences towards increasing water availability during drought. This study departs from the existing literature by conducting the choice experiment in a context where water supply is relatively abundant. This unique framing of the choice experiment allows for a useful comparison with existing studies and also raises challenges about the interpretation of the data for planning purposes.
Journal: Applied Economics
Pages: 3364-3375
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420896
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420896
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3364-3375




Template-Type: ReDIF-Article 1.0
Author-Name: Patty Duijm
Author-X-Name-First: Patty
Author-X-Name-Last: Duijm
Author-Name: Sophie Steins Bisschop
Author-X-Name-First: Sophie
Author-X-Name-Last: Steins Bisschop
Title: Short-termism of long-term investors? The investment behaviour of Dutch insurance companies and pension funds
Abstract: 
 Countercyclical investment strategies of large institutional investors such as insurance companies and pension funds can support financial stability, while procyclical investment behaviour is considered as destabilizing at a macro level. Yet, there is limited understanding of how insurance companies and pension funds invest during market shocks, such as the global financial crisis. Investigating the equity and fixed income portfolios of Dutch non-life insurers, life insurers and pension funds, we find evidence for procyclical behaviour by insurance companies (both life and non-life). For pension funds, we find evidence for countercyclical behaviour during market upturns.
Journal: Applied Economics
Pages: 3376-3387
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420898
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420898
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3376-3387




Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: Does financialization retard growth? Time series and cross-sectional evidence
Abstract: 
 Although financial development is essential for economic development, excessive financialization of the economy is believed to exert a negative effect on output growth. In this article, empirical evidence is presented on the relation between economic growth and financialization as measured by the ratio of credit to GDP and the ratio of publicly traded shares to GDP. The empirical results are based on annual time series data for six country groups as well as cross-sectional data covering a large number of countries. The model is initially specified with unobserved components and estimated in a time-varying parametric framework to account for missing variables. Thereafter, the issue of linear versus quadratic specifications is examined. The results are robust with respect to model specification, estimation method, data type and variable definition, showing in general that financialization has a negative impact on growth. Some evidence is also presented to support the notion of the financial Kuznets curve.
Journal: Applied Economics
Pages: 3405-3415
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420899
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420899
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3405-3415




Template-Type: ReDIF-Article 1.0
Author-Name: Kagiso Mangadi
Author-X-Name-First: Kagiso
Author-X-Name-Last: Mangadi
Author-Name: Jeffrey Sheen
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Sheen
Title: Identifying terms of trade shocks in a developing country using a sign restrictions approach
Abstract: 
 Using annual data for Botswana from 1960 to 2012, we examine the responses of macroeconomic variables to four generalized positive terms of trade shocks – global demand, globalizing, sector-specific and global supply. A sign-restricted structural vector autoregression model with a penalty function is estimated to identify the four possible shocks. While positive global demand and globalization shocks are both expansionary, they have opposite effects on inflation. A positive commodity market specific shock dampens real GDP growth and is inflationary, suggesting a possible Dutch disease response. A negative global supply shock suppresses both output growth and inflation. All but the last shock leads to a significant declining interest rate. Monetary policy contraction is recommended for the first shock and expansion for the others.
Journal: Applied Economics
Pages: 2298-2315
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237757
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237757
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2298-2315




Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Forecasting inflation in an inflation targeting economy: structural versus nonstructural models
Abstract: 
 We propose a comparison between atheoretical and theoretical models in forecasting the inflation rate for an inflation-targeting country such as South Africa. In a pseudo real-time environment, our results show that for shorter horizons, the atheoretical error correction models, with and without factors, perform better; while for longer horizons, theoretical (Dynamic Stochastic General Equilibrium-based) models outperform their competitors.
Journal: Applied Economics
Pages: 2316-2321
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237760
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237760
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2316-2321




Template-Type: ReDIF-Article 1.0
Author-Name: Jizhou Lu
Author-X-Name-First: Jizhou
Author-X-Name-Last: Lu
Author-Name: Gengzhong Feng
Author-X-Name-First: Gengzhong
Author-X-Name-Last: Feng
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Author-Name: Nengmin Wang
Author-X-Name-First: Nengmin
Author-X-Name-Last: Wang
Title: The bullwhip effect on inventory: a perspective on information quality
Abstract: 
 In recent years, there has been a vast increase in the quantity of information shared across supply chain. We investigate how the timeliness and accuracy of information quality affect the value of information sharing. We use the inventory bullwhip effect (BWE) to measure the value of information sharing in a two-level supply chain consisting of one retailer and one manufacturer. The retailer faces a price-sensitive demand and the price is an AR (1) process. Our study shows if customer demand and retailer’s immediate order are delayed, using retailer’s historical order quantity to forecast can decrease manufacturer’s BWE. If information errors happen, during delivery and utilization, information sharing is not always valuable for the manufacturer. Sometimes, no information sharing can decrease much more of BWE. If information errors occur when the retailer collects demand information, value of information sharing is more significant than when there are no information errors.
Journal: Applied Economics
Pages: 2322-2338
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237762
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237762
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2322-2338




Template-Type: ReDIF-Article 1.0
Author-Name: John Dove
Author-X-Name-First: John
Author-X-Name-Last: Dove
Title: Local government type and municipal bond ratings: what’s the relationship?
Abstract: 
 There is an extensive literature analysing the executive branch within local U.S. government jurisdictions. This has largely revolved around the differences between elected mayors and appointed city managers. Much of the academic work has considered the potential efficiency gains that may be associated with either form of government and comparative analyses between the two. However, the empirical literature has been divided regarding the relative efficiency of either form. This article attempts to add to that literature by considering how bond markets may perceive potential efficiencies that emerge from one executive type over the other by evaluating bond ratings for a sample of large municipal governments in the United States. Overall, the results suggest that municipalities headed by a city manager are associated with increased bond ratings (and thus lower borrowing costs), which may lend support that this form of administration is, on some margin, relatively more efficient than others. These results are robust to a number of specifications.
Journal: Applied Economics
Pages: 2339-2351
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237763
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237763
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2339-2351




Template-Type: ReDIF-Article 1.0
Author-Name: Roman Horvath
Author-X-Name-First: Roman
Author-X-Name-Last: Horvath
Author-Name: Klara Voslarova
Author-X-Name-First: Klara
Author-X-Name-Last: Voslarova
Title: International spillovers of ECB’s unconventional monetary policy: the effect on Central Europe
Abstract: 
 We examine how unconventional monetary policy of the European Central Bank (ECB) influences macroeconomic stability in three Central European economies. We estimate various panel vector autoregressions (PVARs) using monthly data from 2008 to 2014. Using the shadow policy rate and central bank assets as measures of unconventional policies, we find that output growth and inflation in Central Europe temporarily increase following an expansionary unconventional monetary policy shock by the ECB. Using both impulse responses and variance decompositions, we find that the effect of unconventional policies on output growth is much stronger than the effect on inflation.
Journal: Applied Economics
Pages: 2352-2364
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237764
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237764
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2352-2364




Template-Type: ReDIF-Article 1.0
Author-Name: Xinhua Gu
Author-X-Name-First: Xinhua
Author-X-Name-Last: Gu
Author-Name: Yang Zhang
Author-X-Name-First: Yang
Author-X-Name-Last: Zhang
Author-Name: Xiao Chang
Author-X-Name-First: Xiao
Author-X-Name-Last: Chang
Title: The role of financial systems for cross-country differences in the link between income and consumption inequality
Abstract: 
 This article discusses why consumption inequality stays low despite high income inequality in the U.S; but income inequality is closely followed by consumption inequality in China. We show that different financial systems can play a critical role in shaping the cross-country different links between income and consumption inequality. This phenomenon is consistent with the cross-country different relationships between income inequality and saving rates. Consumer credit expansion in the U.S. makes inequality much less serious for consumption than for income, and this result holds to an even larger extent if more domestic credit can be financed by foreign savings. But this is not the case in China, whose financial system focuses only on investment and trade while neglecting liquidity constraints on consumption. Our assertions accord well with evidence found from the U.S., China, and other related economies.
Journal: Applied Economics
Pages: 2365-2378
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240338
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2365-2378




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Boussemart
Author-X-Name-First: Jean-Philippe
Author-X-Name-Last: Boussemart
Author-Name: Hervé Leleu
Author-X-Name-First: Hervé
Author-X-Name-Last: Leleu
Author-Name: Edward Mensah
Author-X-Name-First: Edward
Author-X-Name-Last: Mensah
Title: Generation and distribution of the total factor productivity gains in US industries
Abstract: 
 This study estimates productivity gains and their distribution among inputs and outputs for 63 American industries over the period 1987–2012. Using the traditional surplus accounting method, the Total Factor Productivity (TFP) growth rates are divided into their price change components in order to determine the stakeholders who do or do not receive price advantages.An initial analysis showed that TFP of US industries increased at an average trend of 0.8% and established that remunerations to employees and firms’ profitability constituted 49% and 39%, respectively, of the accumulated economic surplus from the productivity gains. Suppliers of intermediate inputs retained 12.1% of the surplus. Finally, customers, equipment and structure providers were the losers in the distribution of economic surplus via, respectively, a significant growth of relative final demand prices and a substantial price decrease of these assets.A second step analysis underlined that industries with high TFP growth rates mainly benefited customers and firms via output price decreases and profitability improvements while industries with low or negative TFP changes hurt customers through significant output price increases. The sectoral level analysis also showed that employees’ remunerations depend only slightly on productivity gains produced within their industrial sectors.
Journal: Applied Economics
Pages: 2379-2393
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240344
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240344
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2379-2393




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian A. Gehricke
Author-X-Name-First: Sebastian A.
Author-X-Name-Last: Gehricke
Author-Name: Jin E. Zhang
Author-X-Name-First: Jin E.
Author-X-Name-Last: Zhang
Title: The implied volatility smirk in the VXX options market
Abstract: 
 The VXX option market has grown in popularity alongside the VXX ETN market in activity and size of oustanding positions, yet there is no complete VXX option pricing model. This paper is the first to document and analyze the implied volatility (IV) curves of the VXX options market, by applying the methodology of Zhang and Xiang, providing a necessary benchmark for developing a VXX option pricing model. The IV curves of the VXX options market do not exhibit the typical smirk shape, as for S&P 500 options, but rather an upward-sloping almost linear curve.
Journal: Applied Economics
Pages: 769-788
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646402
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646402
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:769-788




Template-Type: ReDIF-Article 1.0
Author-Name: Roger Bate
Author-X-Name-First: Roger
Author-X-Name-Last: Bate
Author-Name: Cody Kallen
Author-X-Name-First: Cody
Author-X-Name-Last: Kallen
Author-Name: Aparna Mathur
Author-X-Name-First: Aparna
Author-X-Name-Last: Mathur
Title: The perverse effect of sin taxes: the rise of illicit white cigarettes
Abstract: 
 In this paper, we define illicit white cigarettes as cigarettes that are legal in the country of production, but that are illegally smuggled into other markets without the payment of applicable taxes. This paper analyzes whether taxes create a price wedge between legal and illicit cigarettes and thereby affect the availability and trade of illicit whites across markets. Through original, self-conducted point-of-sale surveys and discarded pack collections across 18 cities, we find that cigarette taxes significantly affect the market for illicit whites. Moreover, based on a smoker survey, we find that the illicit white market is supported by consumers’ willing to purchase illicit products for their reduced prices. It is beyond the scope of this paper to ascertain the optimal tax rates on cigarettes or the stringency of enforcement measures to reduce smoking rates (the desired health outcome). However, gaining a better understanding of the effects of taxes on illicit white trade and consumption is vital because our research suggests that current ‘sin taxes’ drive illicit activity and therefore reduce the effectiveness of higher taxes in curbing the use of cigarettes.
Journal: Applied Economics
Pages: 789-805
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646403
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646403
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:789-805




Template-Type: ReDIF-Article 1.0
Author-Name: Houcem Smaoui
Author-X-Name-First: Houcem
Author-X-Name-Last: Smaoui
Author-Name: Karim Mimouni
Author-X-Name-First: Karim
Author-X-Name-Last: Mimouni
Author-Name: Akram Temimi
Author-X-Name-First: Akram
Author-X-Name-Last: Temimi
Title: The impact of Sukuk on the insolvency risk of conventional and Islamic banks
Abstract: 
 This paper investigates the impact of Sukuk market development on bank insolvency risk using a sample comprising 72 Islamic banks (IBs) and 145 conventional banks (CBs) spanning 15 countries over the 2003–2014 period. We measure bank insolvency risk using the z-score. Using the system-GMM estimator, we find that Sukuk market development adversely affects the insolvency risk of IBs, while that of the CBs remains unchanged. Moreover, our results point to a negative and significant effect of the size on the insolvency risk of both CBs and IBs, thus confirming the well-documented Too-Big-To-Fail hypothesis. This effect is more pronounced for IBs indicating that large IBs exhibit higher insolvency risk than their conventional counterparts. Finally, we show that the 2008 global financial crisis has exacerbated the negative effect of Sukuk market development on bank insolvency risk, as expected.
Journal: Applied Economics
Pages: 806-824
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646406
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646406
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:806-824




Template-Type: ReDIF-Article 1.0
Author-Name: Sheen Liu
Author-X-Name-First: Sheen
Author-X-Name-Last: Liu
Author-Name: Howard Qi
Author-X-Name-First: Howard
Author-X-Name-Last: Qi
Author-Name: Yan Alice Xie
Author-X-Name-First: Yan Alice
Author-X-Name-Last: Xie
Title: Executive compensation and capital structure
Abstract: 
 We examine the relation between capital structure decision and the incentive power of executive compensation that contains both cash and equity components. Our analytical model shows that executive compensation motivates CEOs to pursue more aggressive capital structure policy. However, as firm leverage reaches a certain level, further incentive from compensation cannot motivate CEOs to borrow more. Our findings thus provide an explanation to the mixed evidence of the relation documented in the literature by showing that the relation also depends on the level of firm leverage. Our empirical analysis confirms the predictions of our model that executive compensation provides strong incentive for CEOs to choose high firm leverage. However, firms with high leverage tend to offer CEO compensation with lower incentive power. Subperiod analysis shows that the magnitude of the relation changes with time, while the nature of the relation still holds over the subsample periods. Also, the relation changes with the level of leverage. It is positive when firm leverage is high, but it becomes negative when firm leverage is low.
Journal: Applied Economics
Pages: 825-838
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659927
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659927
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:825-838




Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Antonio Lucena Aiube
Author-X-Name-First: Fernando Antonio Lucena
Author-X-Name-Last: Aiube
Title: On the Brazilian fuel pricing policy: a Gaussian factor model approach
Abstract: 
 In this paper we investigate the oil spot price dynamics and volatility in Brazilian Reais (the local currency). The current policy on price adjustments of refined products caused enormous turmoil in May 2018 due to a trucking strike over high diesel prices. The current price adjustments follow variations of oil prices and exchange rate. This issue opens a discussion of the price transfers of imported oil products. The classic volatility analysis is difficult to carry out because price series in local currency are based on data with non-homogeneous frequency. We use a Gaussian factor model to estimate the oil spot price and then follow two different theoretical approaches to infer the dynamics and volatility in local currency. From these approaches, one can infer how high the volatility is compared to the first future contract taken as a benchmark. Furthermore, one can also monitor the short-term price forecasts once the conditional distribution is known from the dynamics established. This analysis can be applied to any type of refined product depending on the existence of a liquid term structure of future prices.
Journal: Applied Economics
Pages: 839-850
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659929
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659929
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:839-850




Template-Type: ReDIF-Article 1.0
Author-Name: Stelios Bekiros
Author-X-Name-First: Stelios
Author-X-Name-Last: Bekiros
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Author-Name: Rania Jammazi
Author-X-Name-First: Rania
Author-X-Name-Last: Jammazi
Author-Name: Chaker Aloui
Author-X-Name-First: Chaker
Author-X-Name-Last: Aloui
Title: Spillovers across European sovereign credit markets and role of surprise and uncertainty
Abstract: 
 We identify the network structure of spillovers and time-varying spillover intensities across European sovereign credit markets proposing a novel Copula-Granger causality based structural vector auto-regressive (SVAR) approach. Via the proposed framework, we examine the topological and time-varying spillover and contagion between 13 European credit markets, which is found to be consistent with crisis events. The heterogeneity in directional impacts could be useful in revealing contagion effects across the credit markets. We also find that newly proposed surprise and uncertainty indexes, among other macro-economic variables, significantly explain the spillover dynamics.
Journal: Applied Economics
Pages: 851-865
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659930
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659930
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:851-865




Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Kris Ivanovski
Author-X-Name-First: Kris
Author-X-Name-Last: Ivanovski
Title: Electricity consumption and economic growth across Australian states and territories
Abstract: 
 This study investigates the long-run and short-run dynamics between electricity consumption (along with traditional inputs such as labour and capital) on economic output for a panel of seven Australian states/territories over the period 1990 to 2015. Our panel results suggest that electricity consumption is positively related to gross state product in both the long-run and short-run, and the growth effect also extend to traditional inputs such as capital and labour. However, the state/territory-specific results identify both positive and negative relationships between electricity consumption and gross state product. Furthermore, we find evidence of bi-directional causality between state economic growth and capital, labour and electricity consumption, highlighting the importance of traditional inputs as well as electricity consumption in the growth process.
Journal: Applied Economics
Pages: 866-878
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659932
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659932
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:866-878




Template-Type: ReDIF-Article 1.0
Author-Name: Gyanendra Singh Sisodia
Author-X-Name-First: Gyanendra Singh
Author-X-Name-Last: Sisodia
Author-Name: Isabel Soares
Author-X-Name-First: Isabel
Author-X-Name-Last: Soares
Author-Name: Paula Ferreira
Author-X-Name-First: Paula
Author-X-Name-Last: Ferreira
Title: The effect of sample size on European Union’s renewable energy investment drivers
Abstract: 
 Macroeconomic modelling results based on relatively varying sample sizes may lead to incoherent results. Such effects have not been adequately understood in the renewable energy literature regarding the European Union (EU). This study focuses on the comparison of results obtained for renewable energy investment drivers (for solar and wind energy investments) on different samples of EU countries, including all EU-27, former EU-15 and 11 high renewable investment EU countries. The study used a random effect panel data modelling approach over the period 1995–2011 for studying the impact of the levelized cost, regulation perception, carbon emissions and climatic condition on wind and solar investments over the three samples. The results demonstrate the importance of trustable regulation schemes to ensure that regulation will not have a significant negative effect on investment, showing also the need to further extend the model to include support schemes as fundamental drivers for investment.
Journal: Applied Economics
Pages: 5129-5137
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173176
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173176
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5129-5137




Template-Type: ReDIF-Article 1.0
Author-Name: Faisal Mehmood Mirza
Author-X-Name-First: Faisal Mehmood
Author-X-Name-Last: Mirza
Author-Name: Olvar Bergland
Author-X-Name-First: Olvar
Author-X-Name-Last: Bergland
Author-Name: Isma Khatoon
Author-X-Name-First: Isma
Author-X-Name-Last: Khatoon
Title: Measuring the degree of competition in Pakistan’s banking industry: an empirical analysis
Abstract: 
 Pakistan’s banking industry has gone through significant transformation from being in a heavily state regulated and controlled environment to a more liberalized market structure in recent years. This liberalization of banking industry in Pakistan has raised concerns over the dominant banks’ exercise of market power on account of increase in market concentration due to mergers and acquisitions, high profitability in banking sector and increasing interest rate spread. Present study therefore explicitly tests the market conduct of banks using quarterly panel data of 30 banks from 2004 to 2012 and employing Panzar–Rosse, Bresnahan–Lau, Hall–Roeger and Boone’s approaches to study market power. Our findings suggest that Pakistan’s banking industry is working in a competitive environment and we find little evidence for the exercise of market power by the dominant banks. Our results remain robust across all these approaches to measure market power. These findings indicate that the liberalization and deregulation of Pakistan’s banking industry has been successful in improving the competitive conditions in the market.
Journal: Applied Economics
Pages: 5138-5151
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173177
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173177
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5138-5151




Template-Type: ReDIF-Article 1.0
Author-Name: Jürgen Bitzer
Author-X-Name-First: Jürgen
Author-X-Name-Last: Bitzer
Author-Name: Erkan Gören
Author-X-Name-First: Erkan
Author-X-Name-Last: Gören
Title: Measuring capital services by energy use: an empirical comparative study
Abstract: 
 From an engineering perspective, the service that a capital good provides is energy conversion – that is, the physical ‘work’ done by a machine. A capital good’s service can thus be measured directly by the energy consumed in production. We show important empirical advantages of this approximation over traditional measures. The empirical application reveals that this approach avoids a number of conceptual problems of the latter. Furthermore, this measure captures the utilization of the capital stock more accurately as it is more sensitive to fluctuations in economic activity. With a growth accounting exercise, it is shown that the differences between the new and the traditional measures are important for empirical work. Using the new measure yields significantly different results. Especially in times of global recession it provides higher and more feasible total factor productivity growth rates.
Journal: Applied Economics
Pages: 5152-5167
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173178
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173178
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5152-5167




Template-Type: ReDIF-Article 1.0
Author-Name: Shailesh Rana
Author-X-Name-First: Shailesh
Author-X-Name-Last: Rana
Author-Name: G. Michael Phillips
Author-X-Name-First: G. Michael
Author-X-Name-Last: Phillips
Title: Are U.S. growth and value stocks similarly integrated with the world markets? A test across business cycles
Abstract: 
 Utilizing the bivariate GARCH-in-mean methodology, this study examines the strength of global risk premia using 10 major foreign stock markets with two style-based, large-cap U.S. index funds and S&amp;P500, for the period 1993–2014. We incorporated seven U.S. business cycles. The foreign risk premium was found to be significantly strong for both growth and value stocks, and the S&amp;P500 index, indicating that U.S. integration within global market is strong and persistent over the past 20 years. We report distinct risk characteristics owing to global linkages, for the two style-based U.S. funds over different business cycles. The foreign risk premium for growth stocks is mostly positive and especially high during contractions; in contrast, the value stocks demand more premiums during expansions. The growth and value linkages with foreign countries also vary quite substantially over the business cycles. A possible sign of convergence is the decreasing difference between value and growth foreign risk premiums, post-2001, perhaps indicative of greater domestic and global market integration. Our results support a solid, continuing trend of U.S. integration within global markets, with an influential role of business cycles.
Journal: Applied Economics
Pages: 5168-5185
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173179
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173179
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5168-5185




Template-Type: ReDIF-Article 1.0
Author-Name: Qin Fan
Author-X-Name-First: Qin
Author-X-Name-Last: Fan
Author-Name: Stephan J. Goetz
Author-X-Name-First: Stephan J.
Author-X-Name-Last: Goetz
Author-Name: Jiaochen Liang
Author-X-Name-First: Jiaochen
Author-X-Name-Last: Liang
Title: The interactive effects of human capital and quality of life on economic growth
Abstract: 
 To bridge the gap in the quality of life (QOL) and economic growth literature and understand the reinforcing effects of QOL and human capital on economic development, we examine the interactive effects of these two factors on wage growth from 2000 to 2007 at the county level across the United States. First, a Rosen–Roback model is employed to estimate implicit values of amenities including climate, clean air and other natural attributes, which are used to generate QOL indices. Second, QOL, human capital represented by the share of college graduates, and their interaction serve as key variables in the wage growth model. An instrumental variable approach and location fixed effects are used to address endogeneity of human capital and control for location-specific unobservable characteristics. Results suggest that human capital and QOL significantly contribute to economic growth and the growth effects are even larger in nonmetropolitan counties. Importantly, we find that the effect of human capital on growth is larger in high-QOL counties and QOL enhances the effect of human capital on growth. Our results provide empirical support for community development strategies through providing utility-enhancing amenities that improve QOL and retain human capital.
Journal: Applied Economics
Pages: 5186-5200
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173180
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173180
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5186-5200




Template-Type: ReDIF-Article 1.0
Author-Name: Enlinson Mattos
Author-X-Name-First: Enlinson
Author-X-Name-Last: Mattos
Author-Name: Rafael Terra
Author-X-Name-First: Rafael
Author-X-Name-Last: Terra
Title: Nature of transfers, income tax function and empirical estimation of elasticity of taxable income for Brazil
Abstract: 
 This article aims to estimate the elasticity of taxable income (ETI), taking into account the nature of transfers and their use as a redistribution package (involving cash and in-kind transfers) to households in Brazil. Our contributions are twofold. First, we provide a simple model with balanced-budget government that reveals the role played by cash and in-kind transfers on the labour supply (and income tax revenues thereof). Next, in order to estimate ETI in the presence of cash and in-kind transfers, Brazilian population surveys (Pesquisa Nacional por Amostra de Domicílios [PNAD]) are used to explore a limited tax reform that was implemented between 1997 and 1998. This reform only affected the higher income tax bracket. Our findings suggest that in-kind (cash) transfers are positively (negatively) associated with reported taxable income and precise estimation of ETI requires estimates of both types of transfers. Last, we estimate the ETI for Brazil in the range from 0.4 to 1.3 not different from those that maximize income tax revenues.
Journal: Applied Economics
Pages: 5201-5220
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173181
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173181
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5201-5220




Template-Type: ReDIF-Article 1.0
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Author-Name: W. Robert J. Alexander
Author-X-Name-First: W. Robert J.
Author-X-Name-Last: Alexander
Title: Pollution, energy use, GDP and trade: estimating the long-run relationship for Vietnam
Abstract: 
 Since the beginning of economic reform in the 1980s and, in particular, with its openness to international trade accelerating since the 1990s, the Vietnamese economy has registered significant growth. At the same time, energy consumption and the level of pollution in Vietnam has also increased. This article aims to focus on the link between openness to trade and pollution in Vietnam. Due to lack of data, very few existing studies have focused on Vietnam. Using annual data from1980 to 2011 and employing the bounds testing approach to cointegration, based on an autoregressive distributed lagged (ARDL) model, we find that there is a statistically significant long-run relationship amongst pollution, openness to trade, energy consumption and real national income in Vietnam. This conclusion continues to hold when the possibility of a structural break in the relationship is allowed for using the Gregory-Hansen approach to cointegration. Analysis of the cointegration relationship suggests that, in response to any exogenous shock to the system, adjustment back to the long-run equilibrium is very fast.
Journal: Applied Economics
Pages: 5221-5232
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173182
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173182
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5221-5232




Template-Type: ReDIF-Article 1.0
Author-Name: El Mamoun Amrouk
Author-X-Name-First: El Mamoun
Author-X-Name-Last: Amrouk
Author-Name: Stephanie-Carolin Grosche
Author-X-Name-First: Stephanie-Carolin
Author-X-Name-Last: Grosche
Author-Name: Thomas Heckelei
Author-X-Name-First: Thomas
Author-X-Name-Last: Heckelei
Title: Interdependence between cash crop and staple food international prices across periods of varying financial market stress
Abstract: 
 This paper investigates the price dynamics between a selection of international staple food and cash crop futures prices. This price interaction is particularly relevant for developing countries that rely on cash crop export earnings to finance their staple food import requirements. We employ a multivariate Copula-DCC-GARCH model to characterize the cash crop and staple food price interaction over time and a rolling-sample volatility index to identify the direction of the volatility spillover for staple-cash commodity pairs. Results show that the intensity of interaction varies considerably over the sample time, but is, generally positive, and stronger during the period 2007–2012 associated with high commodity prices and financial market stress.
Journal: Applied Economics
Pages: 345-360
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645281
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645281
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:345-360




Template-Type: ReDIF-Article 1.0
Author-Name: Abdelaziz Chazi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Chazi
Author-Name: Ali Mirzaei
Author-X-Name-First: Ali
Author-X-Name-Last: Mirzaei
Author-Name: Zaher Zantout
Author-X-Name-First: Zaher
Author-X-Name-Last: Zantout
Author-Name: Asm Sohel Azad
Author-X-Name-First: Asm Sohel
Author-X-Name-Last: Azad
Title: Does the size of Islamic banking matter for industry growth: international evidence
Abstract: 
 Islamic banking, which has witnessed unprecedented growth in the last quarter of the century is hypothesized to be able to contribute to the development of the financial sector and thus to economic growth through tools inherent to this faith-based model of banking. We test the hypothesis that a higher relative presence of Islamic banking is beneficial to the growth of external finance dependent industries. Using data for 28 industries in 14 countries with dual banking systems, we find that the absolute and relative size of Islamic banking do have a positive impact on industry growth. The results are robust to controlling for the quality of finance as well as for the degree of competition in the banking industry.
Journal: Applied Economics
Pages: 361-374
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645288
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645288
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:361-374




Template-Type: ReDIF-Article 1.0
Author-Name: Isaac Koomson
Author-X-Name-First: Isaac
Author-X-Name-Last: Koomson
Author-Name: Renato A. Villano
Author-X-Name-First: Renato A.
Author-X-Name-Last: Villano
Author-Name: David Hadley
Author-X-Name-First: David
Author-X-Name-Last: Hadley
Title: Intensifying financial inclusion through the provision of financial literacy training: a gendered perspective
Abstract: 
 This study examines the impact of financial literacy training on financial inclusion and its intensity using data collected from a randomised control trial. An additive index of financial inclusion is generated from four financial inclusion indicators. After testing for baseline balance and estimating impact, our findings show that beneficiaries of financial literacy training are about 7.2 percentage points more likely to own an account while they are 8.2 percentage points more likely to save. Overall, beneficiaries of financial literacy training had a 9.5 percentage points advantage in receiving financial assistance than their non-beneficiary counterparts. While financial literacy training only showed a significant impact on account ownership for female-beneficiary households, male-beneficiary households also only experienced an impact in their savings behaviour and receipt of financial assistance. Moreover, beneficiaries of financial literacy training are more likely to intensify their financial inclusion and the intensity of inclusion is higher for male and young beneficiary households. The results highlight the need to strengthen financial literacy training in order to close the gender financial inclusion gap.
Journal: Applied Economics
Pages: 375-387
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645943
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645943
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:375-387




Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Hao Lee
Author-X-Name-First: Chia-Hao
Author-X-Name-Last: Lee
Author-Name: Pei-I Chou
Author-X-Name-First: Pei-I
Author-X-Name-Last: Chou
Title: Industry competition, earnings management and leader–follower effects
Abstract: 
 This article examines the impacts of industry competition on the leader-follower effects in different earnings management activities. The empirical results show that there are the leader-follower effects in the accrual-based earnings management in industries with different extents of competition, while there is the leader-follower effect in the real earnings management activities in industries with lower degrees of industry competition. The evidence implies that the industry competition affects the leader-follower effects in the different earnings management activities, and then the different extents of industry competition have different mediation effects on the leader-follower effect. We expect the empirical results not only fill the gap of literatures, but also provide a new insight for the investors and regulators in their investment decision and regulation revision.
Journal: Applied Economics
Pages: 388-399
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646393
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646393
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:388-399




Template-Type: ReDIF-Article 1.0
Author-Name: David J Hunt
Author-X-Name-First: David J
Author-X-Name-Last: Hunt
Author-Name: Charles R. Link
Author-X-Name-First: Charles R.
Author-X-Name-Last: Link
Title: Better outcomes at lower costs? The effect of public health expenditures on hospital efficiency
Abstract: 
 Local health departments play a critical role in the community they serve as they are the foundation of the U.S. public health system providing services such as immunizations to the less affluent and advocating for state smoking bans. Research indicates public health expenditures improve overall health of the population. Importantly, a healthier population may lead to efficiency gains for surrounding health care providers. We use a two-stage semi-parametric Data Envelopment Analysis to estimate the effects of public health spending on the technical efficiency of the surrounding hospitals. Our results indicate hospitals operating in an area with a high level of per capita public health expenditures experience gains in efficiency of approximately 1.67 percentage points relative to hospitals in low spending areas suggesting a $20 billion in annual savings due to increased hospital efficiency. We also found that the more traditional approaches using the biased estimate for technical efficiency yielded the same conclusions with less computational burdens.Abbreviation: WHO: World Health Organization; NACCHO: National Association of City and County Health Organization; DEA: Data Envelopment Analysis; CMS: Centers for Medicare and Medicaid Services; FTE: Full time equivalent; AHRF: Area Health Resource Files; MSA: Metropolitan Statistical Area; AHA: American Hospital Association
Journal: Applied Economics
Pages: 400-414
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646405
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646405
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:400-414




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Ayalew Ali
Author-X-Name-First: Daniel Ayalew
Author-X-Name-Last: Ali
Author-Name: Klaus Deininger
Author-X-Name-First: Klaus
Author-X-Name-Last: Deininger
Author-Name: Michael Wild
Author-X-Name-First: Michael
Author-X-Name-Last: Wild
Title: Using satellite imagery to create tax maps and enhance local revenue collection
Abstract: 
 Although taxes on land and property have many desirable attributes, the challenge of ensuring completeness of tax rolls and currency of valuations preclude their effective use to support urbanization and service provision in many developing countries. The example of Kigali shows how building footprints and heights generated from high-resolution satellite imagery, together with sales prices and routine statistical data, allow to assess and improve coverage and design of property tax systems. We show that only 40% of potential land lease fee revenue (of US$ 4.9 million) was collected and that moving to 1% value-based tax would increase revenue almost 10 times while being less regressive than the current system. While this could allow reducing the tax burden for low-income groups, exemptions should be applied with caution based on careful empirical analysis.
Journal: Applied Economics
Pages: 415-429
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646408
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646408
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:415-429




Template-Type: ReDIF-Article 1.0
Author-Name: John Moffat
Author-X-Name-First: John
Author-X-Name-Last: Moffat
Author-Name: Hong Il Yoo
Author-X-Name-First: Hong Il
Author-X-Name-Last: Yoo
Title: Religion, religiosity and educational attainment: evidence from the compulsory education system in England
Abstract: 
 This paper investigates the effect of religion on the educational attainment of pupils in their final year of compulsory education in England. The results show that pupils that identify with any religion have better academic performance than other pupils, after controlling for various family, parental and neighbourhood characteristics. The outperformance is reinforced by previous attendance at religious classes but there is no similar effect from considering religion to be very important to their life. Allowing for religion-specific effects shows that Muslim pupils outperform Christian pupils although the performance of the latter group is boosted by attendance at religious classes.
Journal: Applied Economics
Pages: 430-442
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646872
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646872
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:430-442




Template-Type: ReDIF-Article 1.0
Author-Name: Cormac O’ Keeffe
Author-X-Name-First: Cormac
Author-X-Name-Last: O’ Keeffe
Author-Name: Liam A. Gallagher
Author-X-Name-First: Liam A.
Author-X-Name-Last: Gallagher
Title: The winner-loser anomaly: recent evidence from Greece
Abstract: 
 This article finds evidence of significant reversals in returns over the medium term in Greek stocks. In contrast with previous research, return reversals are more pronounced for past winners, suggesting that the market overreacts to a greater extent to good news. These contrarian returns are particularly elevated when portfolios are formed using quartiles and during tranquil and bull markets. The optimum contrarian strategy involves skipping the first 6 months of the holding period and implementing the contrarian strategy for a period of 18 months, as returns exhibit continuation followed by reversal. The profitability of the contrarian investment strategy is robust to adjustments for risk and seasonalities. It is the tranquil times and not the crisis/volatile times that generates a significant and profitable contrarian strategy. The recent credit crisis and resulting stock market falls, resulted in extreme movements in some Greek stocks and testing of the contrarian strategy problematic, especially when portfolios are decile ordered. Our findings also highlight the importance of survivorship bias and also suggest that contrarian strategies that just use market beta may be ill-equipped to take into consider extreme market movements, illiquidity and short-sales constraints.
Journal: Applied Economics
Pages: 4718-4728
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293786
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293786
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4718-4728




Template-Type: ReDIF-Article 1.0
Author-Name: Shu Chun Chang
Author-X-Name-First: Shu Chun
Author-X-Name-Last: Chang
Title: Railway development from the Japanese occupation period to the present – using Kaohsiung city as an example​​​​​​​​
Abstract: 
 This study intended to discuss the interactive influence of the emergence, transformation and decline of the railway in Kaohsiung Port on urban development, the population, the activities and the economy in the region during the period of 1895–2010, from the perspectives of urban planning, railway development, population and industry. This study used the crossover analysis method, and used the factors of railway development and urban planning, within a fixed time period, to explore the chain dependence relationship among the industry, the population, the regional economy and the railway stations in Kaohsiung city. This study found that urban planning, economic development, railway development and industry have an interactive influence on the overall urban development. Urban planning promotes the rapid growth of the population, and economic development propels the growth and shaping of the regional economy, thus increasing employment opportunities. In addition, the railway development process moves forward with urban development.
Journal: Applied Economics
Pages: 4729-4741
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293787
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293787
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4729-4741




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Pauliina Sandqvist
Author-X-Name-First: Anna Pauliina
Author-X-Name-Last: Sandqvist
Title: Dynamics of sectoral business cycle comovement
Abstract: 
 Sectoral comovement accounts for a considerable share of the variance of aggregate variables. However, little is known about its time-varying aspects by now. In this article, a multivariate DCC- GARCH framework is employed to study dynamics of sectoral comovement across manufacturing sectors both in the United States and in Germany. To account for possible nonlinearities, asymmetric effects in conditional volatilities as well as in conditional correlations are being assessed. We find that comovement across sectors is not stable but shows irregular movements. Particularly, contractions tend to be more synchronized than expansions in manufacturing sector. Moreover, we examine the role of various aggregate factors for the fluctuations in conditional correlations. Our findings reveal that both the non-constant variability of common factors and the changes in the effects of these factors play role for the fluctuations in sectoral comovement.
Journal: Applied Economics
Pages: 4742-4759
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293790
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293790
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4742-4759




Template-Type: ReDIF-Article 1.0
Author-Name: Liang Guo
Author-X-Name-First: Liang
Author-X-Name-Last: Guo
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Author-Name: Maggie Hao
Author-X-Name-First: Maggie
Author-X-Name-Last: Hao
Author-Name: Hongxian Zhang
Author-X-Name-First: Hongxian
Author-X-Name-Last: Zhang
Title: Uncertainty and liquidity in corporate bond market
Abstract: 
 We examine the uncertainty–liquidity connection in the corporate bond market. Using monthly corporate bond data from 2005 to 2010, we construct proxies for parameter uncertainty by using firm-level parameters generated from a structural model of corporate debt. We find that uncertainty about firm parameters decreases trading volume but increases bid-ask spreads and price bouncing in the cross-section and across time. In addition, the panel VAR results show that parameter uncertainty has negative forecasting power for future bond liquidity, with greater uncertainty in the current month leading to lower trading volume, higher bid-ask spreads and higher price fluctuations on subsequent months. We conclude that parameter uncertainty is one of the underlying factors giving rise to the high level of illiquidity in the corporate bond market.
Journal: Applied Economics
Pages: 4760-4781
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293792
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293792
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4760-4781




Template-Type: ReDIF-Article 1.0
Author-Name: Patricia D. Fuentes-Saguar
Author-X-Name-First: Patricia
Author-X-Name-Last: D. Fuentes-Saguar
Author-Name: Juan A. Vega-Cervera
Author-X-Name-First: Juan
Author-X-Name-Last: A. Vega-Cervera
Author-Name: Manuel Alejandro Cardenete
Author-X-Name-First: Manuel Alejandro
Author-X-Name-Last: Cardenete
Title: Socio-economic impact of a nuclear power plant: Almaraz (Spain)
Abstract: 
 An analysis is made of the socio-economic impact in a region in which a nuclear plant is decommissioned. The average age of nuclear power plants around the world is high, so that many are close to the end of their useful life. The issue of this impact will be important in a few years for various reasons, especially because those plants tend to be drivers of the economic activity in the areas in which they are located. The focus of this communication is on these socio-economic effects. Methodologically, socio-economic analysis uses a linear Social Accounting Matrix model that improves traditional Input–Output approaches by covering the induced effects generated from the receptors of income out to other sectors of the economy. The procedure is applied to an empirical analysis of the Almaraz Nuclear Power Plant in Spain. This was purposely chosen as sharing many of the general characteristics of nuclear plants around the world. If the plant is closed down, our results suggest that there will be a clear negative impact in terms of employment and added value generation.
Journal: Applied Economics
Pages: 4782-4792
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293793
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293793
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4782-4792




Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Han-Chiang Ho
Author-X-Name-First: Han-Chiang
Author-X-Name-Last: Ho
Title: Markov regime-switching Beta--EGARCH
Abstract: 
 We suggest a Markov regime-switching (MS) Beta-t-EGARCH (exponential generalized autoregressive conditional heteroscedasticity) model for U.S. stock returns. We compare the in-sample statistical performance of the MS Beta-t-EGARCH model with that of the single-regime Beta-t-EGARCH model. For both models we consider leverage effects for conditional volatility. We use data from the Standard Poor’s 500 (S&amp;P 500) index and also a random sample that includes 50 components of the S&amp;P 500. We study the outlier-discounting property of the single-regime Beta-t-EGARCH and MS Beta-t-EGARCH models. For the S&amp;P 500, we show that for the MS Beta-t-EGARCH model extreme observations are discounted more for the low-volatility regime than for the high-volatility regime. The conditions of consistency and asymptotic normality of the maximum likelihood estimator are satisfied for both the single-regime and MS Beta-t-EGARCH models. All likelihood-based in-sample statistical performance metrics suggest that the MS Beta-t-EGARCH model is superior to the single-regime Beta-t-EGARCH model. We present an application to the out-of-sample density forecast performance of both models. The results show that the density forecast performance of the MS Beta-t-EGARCH model is superior to that of the single-regime Beta-t-EGARCH model.
Journal: Applied Economics
Pages: 4793-4805
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293794
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293794
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4793-4805




Template-Type: ReDIF-Article 1.0
Author-Name: Jinfang Li
Author-X-Name-First: Jinfang
Author-X-Name-Last: Li
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Title: The cross-section and time-series effects of individual stock sentiment on stock prices
Abstract: 
 In this article, we construct an individual stock sentiment index by using the principal component analysis method. We empirically study the cross-section and time-series effects of investor sentiment on the stock prices based on the panel data model with dummy variable. The results indicate that individual stock sentiment has greater impact on small-firm stock prices than big-firm stock prices, which presents obvious cross-section effect. Moreover, individual stock sentiment leads to much sharper ﬂuctuations of stock prices in the stock market downturn than in the stock market expansion, which shows obvious time-series effect. Specifically, the individual stock sentiment has the greatest impact on small-firm stock prices under the stock market downturn, exerting significant dual asymmetric effect. Our results are helpful to understanding the micro-mechanism of sentiment effect.
Journal: Applied Economics
Pages: 4806-4815
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293795
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293795
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4806-4815




Template-Type: ReDIF-Article 1.0
Author-Name: Anjum Siddiqui
Author-X-Name-First: Anjum
Author-X-Name-Last: Siddiqui
Author-Name: Atiq ur Rehman
Author-X-Name-First: Atiq ur
Author-X-Name-Last: Rehman
Title: The human capital and economic growth nexus: in East and South Asia
Abstract: 
 This study adopts a disaggregated regional focus to test for the human capital (HC)-growth nexus in selected nine Asian countries. It utilizes the Empirical Bayesian methodology which addresses not only the heterogeneity issue but it also utilizes the common structural priors of regional countries to yield ‘informationally’ efficient estimates of the impact of HC on the stock and levels of GDP. Various measures of HC are utilized to determine which of these produces a better explanation of economic growth in the two Asian regions. The study finds that primary and secondary education was more prominent in explaining the fluctuations of economic growth in East Asia, whereas tertiary and vocational education showed positive effects on economic growth in South Asia. Government expenditures on education were also found to positively affect economic growth in both regions. The results shed new evidence to establish that the differences in growth rates within East and South Asia are associated with differences in educational progression in the regions.
Journal: Applied Economics
Pages: 2697-2710
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245841
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245841
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2697-2710




Template-Type: ReDIF-Article 1.0
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Author-Name: Shin S. Ikeda
Author-X-Name-First: Shin S.
Author-X-Name-Last: Ikeda
Title: Effects of short sale ban on financial liquidity in crisis and non-crisis periods: a propensity score-matching approach
Abstract: 
 We investigate the impact of banning the short-selling (shorting ban) on liquidity of stocks traded in the Hong Kong Stock Exchange (HKEx) on the basis of the 20 revisions of the designated list of shortable stocks from January 2006 to December 2010. In order to avoid endogeneity due to the liquidity-adaptive implementation of the ban policy, we use the propensity score-matching of shortable and unshortable stocks and apply the double- and triple-difference methods embedded in the fixed effect panel regression for the matched data. Using two outcome variables for illiquidity, the Amihud price-impact measure, and the bid-ask spread, our results suggests that the shorting ban in this market may have a liquidity-supporting effect in terms of the price impact with no regard to market tranquility and in terms of the spread with regard to the 2008–2009 financial crisis.
Journal: Applied Economics
Pages: 2711-2718
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245843
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245843
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2711-2718




Template-Type: ReDIF-Article 1.0
Author-Name: Feriha Ibriyamova
Author-X-Name-First: Feriha
Author-X-Name-Last: Ibriyamova
Author-Name: Samuel Kogan
Author-X-Name-First: Samuel
Author-X-Name-Last: Kogan
Author-Name: Galla Salganik-Shoshan
Author-X-Name-First: Galla
Author-X-Name-Last: Salganik-Shoshan
Author-Name: David Stolin
Author-X-Name-First: David
Author-X-Name-Last: Stolin
Title: Using semantic fingerprinting in finance
Abstract: 
 Researchers in finance and adjacent fields have increasingly been working with textual data, a common challenge being analysing the content of a text. Traditionally, this task has been approached through labour- and computation-intensive work with lists of words. In this article we compare word list analysis with an easy-to-implement and computationally efficient alternative called semantic fingerprinting. Using the prediction of stock return correlations as an illustration, we show semantic fingerprinting to produce superior results. We argue that semantic fingerprinting significantly reduces the barrier to entry for research involving textual content analysis, and we provide guidance on implementing this technique.
Journal: Applied Economics
Pages: 2719-2735
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245844
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245844
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2719-2735




Template-Type: ReDIF-Article 1.0
Author-Name: Zhen Huang
Author-X-Name-First: Zhen
Author-X-Name-Last: Huang
Author-Name: Wanli Li
Author-X-Name-First: Wanli
Author-X-Name-Last: Li
Author-Name: Weiwei Gao
Author-X-Name-First: Weiwei
Author-X-Name-Last: Gao
Title: Why do firms choose zero-leverage policy? Evidence from China
Abstract: 
 In recent years, firms choosing zero-leverage policy have largely increased around the world. However, few studies have focused on why Chinese firms choose zero-leverage policy. In this article, we investigate the motivations for firms choosing zero-leverage policy from the perspective of financing needs. Using a sample of public firms listed in Shanghai and Shenzhen Stock market in China from 2007 to 2014, we find that firms without external financing needs are more likely to become zero-leverage firms, and that financial constraints and financial flexibility also may be the motivations for firms choosing zero-leverage policy.
Journal: Applied Economics
Pages: 2736-2748
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245845
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245845
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2736-2748




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon
Author-X-Name-First: Robert
Author-X-Name-Last: Dixon
Author-Name: G. C. Lim
Author-X-Name-First: G. C.
Author-X-Name-Last: Lim
Author-Name: Jan C. van Ours
Author-X-Name-First: Jan C.
Author-X-Name-Last: van Ours
Title: Revisiting the Okun relationship
Abstract: 
 Our article revisits the Okun relationship between observed unemployment rates and output gaps. We include in the relationship the effect of labour market institutions as well as age and gender effects. Our empirical analysis is based on 20 OECD countries over the period 1985–2013. We find that the share of temporary workers (which includes a high and rising share of young workers) played a crucial role in explaining changes in the Okun coefficient (the impact of the output gap on the unemployment rate) over time. The Okun coefficient is not only different for young, prime-age and older workers but also it decreases with age. From a policy perspective, it follows that an increase in economic growth will not only have the desired outcome of reducing the overall unemployment rate but it will also have the distributional effect of lowering youth unemployment.
Journal: Applied Economics
Pages: 2749-2765
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245846
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245846
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2749-2765




Template-Type: ReDIF-Article 1.0
Author-Name: Bill Hu
Author-X-Name-First: Bill
Author-X-Name-Last: Hu
Author-Name: Christine Jiang
Author-X-Name-First: Christine
Author-X-Name-Last: Jiang
Author-Name: Thomas McInish
Author-X-Name-First: Thomas
Author-X-Name-Last: McInish
Author-Name: Haigang Zhou
Author-X-Name-First: Haigang
Author-X-Name-Last: Zhou
Title: Price clustering on the Shanghai Stock Exchange
Abstract: 
 We investigate price clustering of intraday trades and negotiated block trades on the Shanghai Stock Exchange (SSE) from 2003 to 2009. Prices of traded assets tend to cluster on certain final digits, such as 0 and 5. In Chinese culture, 8 is associated with good luck and 4 with death so these numbers may be attractive or avoided. We find that price clustering on the final digit of 0 is significantly higher during the morning call auction and early in the trading day. We find no evidence of price clustering for the digit 8, but there is a significant dearth of prices ending in the inauspicious number 4. Price clustering is significantly higher for negotiated block trades, for which about 28% end with 0. Multivariate analysis shows that price clustering is lower for more liquid firms, but higher for firms with higher return volatility, a higher price level, or when the market is volatile. Our evidence supports the costly negotiation hypothesis. Our results also support the attraction hypothesis in that we document significant price clustering at round numbers and even numbers even after controlling for factors that are associated with price uncertainty.
Journal: Applied Economics
Pages: 2766-2778
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248284
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248284
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2766-2778




Template-Type: ReDIF-Article 1.0
Author-Name: Annette Alstadsæter
Author-X-Name-First: Annette
Author-X-Name-Last: Alstadsæter
Author-Name: Martin Jacob
Author-X-Name-First: Martin
Author-X-Name-Last: Jacob
Title: Who participates in tax avoidance? Evidence from Swedish microdata
Abstract: 
 This article empirically examines why not all individuals participate in tax avoidance. We use rich Swedish administrative panel data on all taxpayers, with a link between corporate and individual tax returns and document that few individuals utilize legal and observable tax avoidance opportunities. Our results show that there are several frictions in tax avoidance participation. In addition to monetary benefits from tax avoidance (incentives), the opportunity to participate in tax avoidance (access), as well as information and knowledge about these opportunities (awareness), are important factors for the individual’s tax avoidance decision. We further show that tax avoidance spreads within communities. The impact of the local network is stronger for non-commuters who live and work in the same municipality.
Journal: Applied Economics
Pages: 2779-2796
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248285
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248285
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2779-2796




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Baltas
Author-X-Name-First: Nicholas
Author-X-Name-Last: Baltas
Author-Name: Mike G. Tsionas
Author-X-Name-First: Mike G.
Author-X-Name-Last: Tsionas
Author-Name: Konstantinos Baltas
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Baltas
Title: Foreign direct investment in OECD countries: a special focus in the case of Greece
Abstract: 
 Foreign Direct Investment (FDI) is considered as an important instrument for economic development all over the world. The aim of this paper is to examine the FDI inflows determinants for 24 OECD countries.  To this end we employ annual data from 1980 to 2012 for a series of potential FDI determinants that have been identified as the most important by the relevant literature. Our empirical strategy employs both the standard fixed effects panel as well as a dynamic panel approach. The empirical findings highlight the importance of market size, trade openness, unit labor cost, schooling, taxation, gross capital formation, institutional variables, and ROA/ROE as significant FDI determinants. In the case of the dynamic panel model those FDI inflows determinants are not uniform for all country groups. Additionally, the results indicate that corporate tax rates clearly affect FDI attractiveness. This finding is robust when testing different countries subgroups. The present study has important policy implications indicating the factors that host economies should place emphasis on in order to attract FDI inflows. Policy makers should not only pay attention to the corporate tax rate level but they should also design a simple, stable and transparent taxation system that minimizes the relevant business risk.
Journal: Applied Economics
Pages: 5579-5591
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488054
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488054
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5579-5591




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Author-Name: Hai Lin
Author-X-Name-First: Hai
Author-X-Name-Last: Lin
Author-Name: Ping-Wen Sun
Author-X-Name-First: Ping-Wen
Author-X-Name-Last: Sun
Author-Name: Bin Yu
Author-X-Name-First: Bin
Author-X-Name-Last: Yu
Title: A reliable performance measure to differentiate China’s actively managed open-end equity mutual funds
Abstract: 
 We compare different fund performance measures to examine which performance measures can generate risk-adjusted returns between high ranked and low ranked China’s actively managed open-end equity mutual funds. Our results show that only the six-factor (five factors (market, size, b/m, profitability &amp; Investment facotrs) plus a momentum factor) alpha as the performance measure meets the criteria. Separated by the six-factor alpha, better performing funds have a larger asset under management, a better past 6-month cumulative return, a better stock picking ability, and a higher percentage of hybrid funds. Through our sample period from July 2004 to December 2015, the highest ranked quintile funds generate a monthly risk-adjusted return of 0.24% more than the lowest ranked quintile funds and the six-factor alpha reliably selects a better fund portfolio in both bear and bull markets on the basis of both fund return and holding data. Furthermore, our results from fund trading data show that funds with the highest six-factor alpha rank demonstrate a better trading skill in bear markets, suggesting that those better performing funds exhibit their market timing and stock picking abilities when investors need them most.
Journal: Applied Economics
Pages: 5592-5603
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488055
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488055
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5592-5603




Template-Type: ReDIF-Article 1.0
Author-Name: Hsien-Yi Chen
Author-X-Name-First: Hsien-Yi
Author-X-Name-Last: Chen
Author-Name: Shu-Ling Yang
Author-X-Name-First: Shu-Ling
Author-X-Name-Last: Yang
Title: Contagion effects of sovereign credit rating revisions on the real economy: is it trade or finance?
Abstract: 
 We analyse the contagion effects of sovereign credit rating revisions on the real economy, with particular emphasis on the intensity of trade and finance channels. Our findings show that event countries that experienced rating revisions cause substantial contagion effects on the real output growth rates of nonevent countries. Nonevent countries with a high export ratio, high external debt levels, or those that are more dependent on common bank credit relative to other nonevent countries are more likely to be infected by event countries’ adverse credit shocks. The results remain after accounting for alternative real economy indicators, financial liberalization, financial crises, and economic development status.
Journal: Applied Economics
Pages: 5604-5619
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488056
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488056
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5604-5619




Template-Type: ReDIF-Article 1.0
Author-Name: Gregmar I. Galinato
Author-X-Name-First: Gregmar I.
Author-X-Name-Last: Galinato
Author-Name: You Zhou
Author-X-Name-First: You
Author-X-Name-Last: Zhou
Title: How a race to the bottom can make you fat
Abstract: 
 This article measures the effect of fiscal competition on obesity rates in the United States through education and health spending. We hypothesize that fiscal competition to attract firms results in lower business tax revenues and higher public infrastructure spending which crowds out education and health spending leading to an increase in obesity rates. We empirically test this hypothesis. We find that there is significant fiscal competition to attract firms. Next, we show that when business tax revenues are lowered and public infrastructure spending favouring businesses increased, public health and education spending declines and obesity rates significantly increase. Thus, fiscal competition significantly contributes to obesity rates through the education and health spending channel.
Journal: Applied Economics
Pages: 5620-5640
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488058
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488058
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5620-5640




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Amatul Razzaq Chaudhary
Author-X-Name-First: Amatul Razzaq
Author-X-Name-Last: Chaudhary
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Title: Is energy consumption sensitive to foreign capital inflows and currency devaluation in Pakistan?
Abstract: 
 This study investigates the relationship between foreign capital inflows and energy consumption by incorporating economic growth, exports and currency devaluation in energy demand function for the case of Pakistan. The long-run and short-run effects are examined via ARDL bounds testing procedure. Foreign capital inflows and currency devaluation (economic growth and exports) decrease (increase) energy consumption in long-run. The results confirm a feedback effect between foreign capital inflows and energy consumption. These findings would be helpful to policy makers in designing comprehensive economic and energy policies for utilizing foreign capital inflows as a tool for optimal use of energy sources to enhance economic development in long run.
Journal: Applied Economics
Pages: 5641-5658
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488059
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488059
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5641-5658




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Wilson
Author-X-Name-First: Nicholas
Author-X-Name-Last: Wilson
Title: Targeted characteristics and use of socially marketed preventive health goods: evidence from condoms in sub-Saharan Africa
Abstract: 
 Social marketing is a popular method for allocating targeted publicly funded preventive health goods in poor countries. However, low demand among targeted groups may inhibit take-up relative to non-targeted groups, ownership may not result in use, and there exists little large-scale evidence on how use of socially marketed goods varies by targeted characteristics. I assemble national household survey data from 27 sub-Saharan African countries to examine how use of one of the most common socially marketed preventive health goods (i.e. male condoms) varies by the main targeted characteristics (i.e. low income, low educational attainment, and high HIV risk).The results suggest that the majority of condoms used are socially marketed condoms, engaging in transactional sex is associated with an increased likelihood of using a socially marketed condom brand, and low-income/low educational attainment are not associated with increased likelihoods of using socially marketed brands. The fact that distribution targets low socioeconomic status groups and relative use remains low suggests that weak demand for condoms among these groups inhibits use. Policymakers should consider mechanisms to increase demand and to further refine targeting efforts.
Journal: Applied Economics
Pages: 5659-5671
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488060
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488060
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5659-5671




Template-Type: ReDIF-Article 1.0
Author-Name: Kurt A. Hafner
Author-X-Name-First: Kurt A.
Author-X-Name-Last: Hafner
Author-Name: Lennart Kampe
Author-X-Name-First: Lennart
Author-X-Name-Last: Kampe
Title: Monetary union in Latin America: an assessment in the context of optimum currency area
Abstract: 
 The article applies the optimum currency area (OCA) theory to Latin America to assess the potential of a monetary union in Latin America and in its major existing regional trade agreements (RTAs). According to OCA criteria we find that Latin America is far from being an optimum currency area, as its countries’ exposure to asymmetric shocks is high and their capacities to adjust in response to macroeconomic disturbances are limited. Using a panel of 20 Latin American countries from 1990 to 2014, we apply the dynamic OLS estimation techniques to estimate the costs and benefits of a potential monetary union in Latin America and in its various RTAs. to estimate the costs and benefits of a potential monetary union in Latin America and in its various RTAs. We find that the costs are high, because Latin America’s economies are vulnerable to severe macroeconomic disturbances and its RTAs differ significantly in their response to negative demand shocks. Most of the monetary efficiency gains are shown to be the result of a common restrictive monetary policy which would result in higher FDI inflows and, to a more limited extent, increased GDP, both overall and per capita. Although Central American countries are shown to be most suitable for further monetary integration, we conclude that Latin American countries should head first towards greater economic and political integration.
Journal: Applied Economics
Pages: 5672-5697
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489116
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489116
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5672-5697




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: ‘Keeping up with the (Portuguese) Joneses’—a study on the spatial dependence of municipal expenditure
Abstract: 
 Municipalities tend to replicate the size and the composition of their neighbours’ expenditures, independently of being ruled by left-wing or right-wing parties. This is one important conclusion of the study, which includes spatial dependence to explain the value of Portuguese municipalities’ direct awards. We used observations for the 308 Portuguese municipalities from 2009 to 2015. We then tested this spatial dependence for the mean value (per contract of direct award) and we controlled the results considering the demographic characteristics of each municipality, the political wing of the ruling party at the municipality, and the composition of the municipal expenditures.
Journal: Applied Economics
Pages: 3689-3709
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581914
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581914
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3689-3709




Template-Type: ReDIF-Article 1.0
Author-Name: David Bartolini
Author-X-Name-First: David
Author-X-Name-Last: Bartolini
Author-Name: Eniel Ninka
Author-X-Name-First: Eniel
Author-X-Name-Last: Ninka
Author-Name: Raffaella Santolini
Author-X-Name-First: Raffaella
Author-X-Name-Last: Santolini
Title: Tax decentralization, labour productivity, and employment in OECD countries
Abstract: 
 Tax decentralization should improve the efficiency of local governments and ultimately boost output growth. However, the empirical evidence is mixed. Decomposing output growth into labour productivity and employment growth, we show that the ultimate effect of fiscal decentralization on growth depends on which factor prevails, thus rendering the direct estimation of tax decentralization on growth ambiguous. Using an instrumental variable approach, with instruments based on institutional similarities and geographic distance, the empirical analysis on a sample of 20 OECD countries shows that the positive and significant effect of tax decentralization on the employment growth rate is offset by the reduction of labour productivity growth, resulting in the absence of any statistically significant effect on output growth.
Journal: Applied Economics
Pages: 3710-3729
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584369
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584369
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3710-3729




Template-Type: ReDIF-Article 1.0
Author-Name: Yujiang Bi
Author-X-Name-First: Yujiang
Author-X-Name-Last: Bi
Author-Name: W. Robert J. Alexander
Author-X-Name-First: W. Robert J.
Author-X-Name-Last: Alexander
Author-Name: Zhen Pei
Author-X-Name-First: Zhen
Author-X-Name-Last: Pei
Title: Factors affecting trade in services: evidence from panel data
Abstract: 
 In the course of economic development, nations have typically progressed through stages in which agriculture, then manufacturing and, finally, services predominate. Concerns around the sustainability of manufacturing and goods export-led growth raise the importance of trade in services. In the context of a panel model, controlling for the factors that determine trade in general, we examine the determinants of trade in services in a sample of 46 countries over the decade 2004–2015. We find an ambiguous pattern of effects from institutional quality but strong evidence of the importance of trade in goods for trade in services.
Journal: Applied Economics
Pages: 3730-3739
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584379
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584379
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3730-3739




Template-Type: ReDIF-Article 1.0
Author-Name: Haizhen Mou
Author-X-Name-First: Haizhen
Author-X-Name-Last: Mou
Author-Name: Michael M. Atkinson
Author-X-Name-First: Michael M.
Author-X-Name-Last: Atkinson
Author-Name: Jim Marshall
Author-X-Name-First: Jim
Author-X-Name-Last: Marshall
Title: Budgeting for efficiency? A case study of the public K-12 education systems of Canada
Abstract: 
 In spite of the declining and uneven performance of Canadian students on the OECD’s Programme for International Student Assessment (PISA) tests, little attention has been paid to whether provinces are allocating their education budgets to improve academic performance. This study uses a two-stage data envelope analysis (DEA) technique to estimate the degree to which education expenditures are efficiently allocated relative to achievement scores. We find that in these terms the overall cost-efficiency of the public K-12 education systems in the 10 provinces has deteriorated and that, in general, the provinces have become less able to allocate resources efficiently and use them in the most technically productive way. However, some provinces are more efficient than others. To gauge the extent to which performance measures, such as PISA scores, factor into budgeting decisions we interviewed 28 budget managers in 10 Canadian provinces and two territories, probing the criteria used to allocate education resources. The preponderant pattern of budgeting is described as an ‘increments-based-on-formula’ approach, one that is not particularly responsive to efficiency concerns but that often takes account of equity imperatives.
Journal: Applied Economics
Pages: 3740-3757
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584380
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584380
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3740-3757




Template-Type: ReDIF-Article 1.0
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Author-Name: Qin Luo
Author-X-Name-First: Qin
Author-X-Name-Last: Luo
Title: Market concentration measurement, administrative monopoly effect and efficiency improvement: empirical data from China civil aviation industry 2001-2015
Abstract: 
 China’s civil aviation transportation industry is a natural monopoly industry field, and the effect of administrative monopoly is obviously. This paper uses absolute market concentration (CRn) and relative market concentration (HHI) to quantitatively analyze the competition and monopoly degree of Chinese civil aviation transportation in 2001–2015. It is found that although the monopoly degree of Chinese civil aviation industry has declined in the time period, it still belongs to the oligopoly monopoly market. Then, this paper calculates the production efficiency of the industry by DEA method, and makes an empirical test on the relationship between the two factors using the econometric models. With taking into account the calculated results and the HHI index. Relevant research results show that the equilibrium between the existing production efficiency and the degree of administrative monopoly in China’s civil aviation transportation industry long-term stably from the time period. In order to realize the rapid development and improve the efficiency of the industry, the Chinese civil aviation transportation industry must carry out the market-oriented reform. By realizing the separation of government and enterprises, it is necessary to promote the good competition rules in order to benefit the consumers.
Journal: Applied Economics
Pages: 3758-3769
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584381
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584381
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3758-3769




Template-Type: ReDIF-Article 1.0
Author-Name: Louinord Voltaire
Author-X-Name-First: Louinord
Author-X-Name-Last: Voltaire
Author-Name: P. Wilner Jeanty
Author-X-Name-First: P. Wilner
Author-X-Name-Last: Jeanty
Author-Name: Claudio Pirrone
Author-X-Name-First: Claudio
Author-X-Name-Last: Pirrone
Author-Name: Pierre-Alexandre Mahieu
Author-X-Name-First: Pierre-Alexandre
Author-X-Name-Last: Mahieu
Title: A convergent validity test within the payment card format using simulation techniques
Abstract: 
 A convergent validity test is performed between two groups of versions of the payment card format. The first group, the classic payment card (CPC), asks respondents to report their willingness to pay (WTP) as a point from a list of amounts, and then treats each WTP response as an interval. The second group generates WTP data that may contain both single point and interval values. It includes the two-way-payment ladder (TWPL) (respondents have to tick amounts they would definitely pay and cross amounts they would definitely not pay), and point-interval payment card (PIPC) (respondents have to tick their WTP as either a point or an interval). The test is conducted using data from one TWPL study and two PIPC studies. For each study, we use WTP values stated to simulate 200 CPC WTP datasets, which allows controlling for any behavioral biases likely to confound the outcome of the test. The results challenge the conventional way of eliciting WTP under the CPC and the typical way of treating WTP data from this PC version. Although convergent validity holds between the TWPL/PIPC and CPC, parameter and mean WTP estimates from the TWPL and PIPC are more stable as PC intervals widths increase.
Journal: Applied Economics
Pages: 3770-3786
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584382
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584382
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3770-3786




Template-Type: ReDIF-Article 1.0
Author-Name: Mariusz Jarmuzek
Author-X-Name-First: Mariusz
Author-X-Name-Last: Jarmuzek
Author-Name: Rossen Rozenov 
Author-X-Name-First: Rossen
Author-X-Name-Last: Rozenov 
Title: Excessive private sector leverage and its drivers: evidence from advanced economies
Abstract: 
 The paper provides novel quantitative assessments of the gaps between actual and sustainable levels of debt for households and corporates in selected advanced economies, revealing considerable heterogeneity across sectors and countries. The accumulation of gaps is found to precede financial distress. The paper also identifies key factors that drive excessive debt, separately for households and corporates. For households, excessive leverage is found to be higher in countries with lower interest rates and higher share of working population, but importantly also in countries with rising house prices and greater uncertainty as captured by unemployment. For corporates, debt overhang is estimated to be higher in countries with lower profitability, stronger insolvency frameworks and in absence of thin capitalization rules. There is therefore scope for the use of policy to limit the build-up of household and corporate debt overhang.
Journal: Applied Economics
Pages: 3787-3803
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584383
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584383
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3787-3803




Template-Type: ReDIF-Article 1.0
Author-Name: Meher Manzur
Author-X-Name-First: Meher
Author-X-Name-Last: Manzur
Title: Exchange rate economics is always and everywhere controversial
Abstract: 
 This article reviews the major developments in the recent literature on exchange rate economics. It is argued that the link between the exchange rate and economic fundamentals is breaking new ground. Evidence indicates that alternative analytical frameworks (such as the new open-economy macroeconomics) and exchange rate arrangements (such as the euro) have their theoretical and analytical elegance, but are proving empirically very difficult to implement. The role of methodological advances and alternative fundamental instruments (such as world commodity prices) is also highlighted.
Journal: Applied Economics
Pages: 216-232
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313960
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313960
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:216-232




Template-Type: ReDIF-Article 1.0
Author-Name: Chuang-Min Chao
Author-X-Name-First: Chuang-Min
Author-X-Name-Last: Chao
Author-Name: Ming-Miin Yu
Author-X-Name-First: Ming-Miin
Author-X-Name-Last: Yu
Author-Name: Nan-Hsing Hsiung
Author-X-Name-First: Nan-Hsing
Author-X-Name-Last: Hsiung
Author-Name: Li-Hsueh Chen
Author-X-Name-First: Li-Hsueh
Author-X-Name-Last: Chen
Title: Profitability efficiency, marketability efficiency and technology gaps in Taiwan’s banking industry: meta-frontier network data envelopment analysis
Abstract: 
 The aim of this article is to measure the profitability efficiency (PE) and marketability efficiency (ME) of non-homogenous Taiwanese banks after the adoption of International Financial Reporting Standards by using the convex meta-frontier data envelopment analysis model. The model is applied to simultaneously estimate PE and ME of the banks in financial holding companies (FHCs) and the banks not in FHCs. The meta-inefficiencies in individual processes are further decomposed into group inefficiencies and technology gap inefficiencies to explore the sources of inefficiency. The empirical results indicate that the banks in FHCs can reduce more costs than the banks not in FHCs, whereas the banks not in FHCs can create greater market value than the banks in FHCs. For the banks joining and not in FHCs, technology gap inefficiency is the main source of inefficiencies in both profitability and marketability processes.
Journal: Applied Economics
Pages: 233-250
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1316827
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316827
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:233-250




Template-Type: ReDIF-Article 1.0
Author-Name: Sean Langcake
Author-X-Name-First: Sean
Author-X-Name-Last: Langcake
Author-Name: Tim Robinson
Author-X-Name-First: Tim
Author-X-Name-Last: Robinson
Title: Forecasting the Australian economy with DSGE and BVAR models
Abstract: 
 Reflecting the importance of commodities for the Australian economy, we construct a dynamic stochastic general equilibrium (DSGE) model of the Australian economy with a commodity sector. We assess whether its forecasts can be improved by using it as a prior for an empirical Bayesian vector autoregression (BVAR). We find that the forecasts from the BVAR tend to be more accurate than those from the DSGE model. Nevertheless, for output growth these forecasts do not outperform benchmark models, such as a small open economy BVAR estimated using the standard priors for forecasting. A Bayesian factor augmented vector autoregression produces the most accurate near-term inflation forecasts.
Journal: Applied Economics
Pages: 251-267
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319558
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319558
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:251-267




Template-Type: ReDIF-Article 1.0
Author-Name: Ankita Mishra
Author-X-Name-First: Ankita
Author-X-Name-Last: Mishra
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Title: Re-examination of convergence hypothesis among Indian states in panel stationarity testing framework with structural breaks
Abstract: 
 This article examines the conditional income convergence hypothesis for 17 major states in India for the period of 1960–2012. Univariate stationarity tests without structural breaks provide evidence against the convergence hypothesis. However, when two or more structural breaks are applied in per capita income series, the incomes of around 11–13 states are found to stochastically converge to the national average. This finding supports the convergence hypothesis for the panel as a whole after accounting for two data features, cross-sectional dependence and structural breaks in incomes, using a unified panel stationarity testing framework.
Journal: Applied Economics
Pages: 268-286
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319559
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319559
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:268-286




Template-Type: ReDIF-Article 1.0
Author-Name: Ying (Jessica) Cao
Author-X-Name-First: Ying (Jessica)
Author-X-Name-Last: Cao
Author-Name: John Cranfield
Author-X-Name-First: John
Author-X-Name-Last: Cranfield
Author-Name: Tina Widowski
Author-X-Name-First: Tina
Author-X-Name-Last: Widowski
Title: Position-Dependent order effects on the prediction of consumer preferences in repeated choice experiments
Abstract: 
 Using stated choice data collected by experimental design with repeated choice tasks, this study developed an approach to quantify the position-dependent order effects on the prediction of preferences and marginal willingness to pay for product attributes. Results showed that repeated choice tasks allow learning to occur. Models with order effect adjustments showed significant improvements in goodness of fit. Attribute-specific polynomial trends showed the best fit among all models, which could possibly be explained by respondents’ familiarity and sensitivity to different product attributes. Repeated-choice experiments have a good potential to capture consumer preferences more accurately than the single-choice design. But order effects need to be taken into account for preferences and market prediction.
Journal: Applied Economics
Pages: 287-302
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321836
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321836
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:287-302




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Mikkelsen
Author-X-Name-First: Andreas
Author-X-Name-Last: Mikkelsen
Title: Pairs trading: the case of Norwegian seafood companies
Abstract: 
 In this article, I investigate the performance of a pairs trading strategy on 18 seafood company stocks traded in the Norwegian consumer goods sector on the Oslo Stock Exchange. I apply both high-frequency and daily data from January 2005 to December 2014. I use two approaches – a distance approach and a cointegration approach – and compare the results. For both the distance and the cointegration approaches, nonconvergence of the pairs is high, which may indicate that more fundamental information about the companies traded should be accounted for. None of the strategies evaluated had significant profits after accounting for transaction costs. It therefore remains unclear which approach is best suited for pairs selection. Using high-frequency data yielded empirical distributions that were symmetrical and had a lower degree of leptokurtosis compared to the daily data.
Journal: Applied Economics
Pages: 303-318
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321837
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321837
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:303-318




Template-Type: ReDIF-Article 1.0
Author-Name: Fenghua Wen
Author-X-Name-First: Fenghua
Author-X-Name-Last: Wen
Author-Name: Jihong Xiao
Author-X-Name-First: Jihong
Author-X-Name-Last: Xiao
Author-Name: Chuangxia Huang
Author-X-Name-First: Chuangxia
Author-X-Name-Last: Huang
Author-Name: Xiaohua Xia
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Xia
Title: Interaction between oil and US dollar exchange rate: nonlinear causality, time-varying influence and structural breaks in volatility
Abstract: 
 This article examines the nonlinear Granger causality and time-varying influence between crude oil prices and the US dollar (USD) exchange rate using the Hiemstra and Jones (HP) test, the Diks and Panchenko (DP) test and the time-varying parameter structural vector autoregression model. By applying the iterated cumulative sums of squares (ICSS) algorithm and the DCC-GARCH model, the effects of structural breaks in volatility of the two markets are also investigated. The empirical analysis indicates that, first, crude oil prices are the nonlinear Granger-cause of the USD exchange rate, but not vice versa. Second, the USD exchange rate exerts a stronger and more stable negative influence on crude oil prices in the short term, and the influence gradually weakens after 2012. Finally, ignoring structural breaks can increase the negative volatility correlation between the oil and USD exchange rate markets, which is particularly remarkable during the financial crisis.
Journal: Applied Economics
Pages: 319-334
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321838
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321838
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:319-334




Template-Type: ReDIF-Article 1.0
Author-Name: Zhongjun Zhang
Author-X-Name-First: Zhongjun
Author-X-Name-Last: Zhang
Author-Name: Shunming Zhang
Author-X-Name-First: Shunming
Author-X-Name-Last: Zhang
Author-Name: Fangfang Zhang
Author-X-Name-First: Fangfang
Author-X-Name-Last: Zhang
Author-Name: Jing Yu
Author-X-Name-First: Jing
Author-X-Name-Last: Yu
Author-Name: Yanyang Zhu
Author-X-Name-First: Yanyang
Author-X-Name-Last: Zhu
Title: Validity of sustainability framework for China’s mining cities – a structural equation modelling approach
Abstract: 
 Many studies developed their framework for sustainability through indicator systems, but the interactions and relationships within these indicators have not been studied yet. In this article, based on indicator systems, we use a sample of 78 mining cities in China and employ structural equation modelling (SEM) method to explore the validity of sustainability framework. Our empirical results show that resources abundance positively affects urbanization level significantly but negatively affects cleaner production level and environmental protection level significantly; economic strength positively affects urbanization level significantly; cleaner production level has a significant effect on economic strength and non-mineral resources conversion efficiency. We also find that when economic strength is low, resources abundance might weaken the positive effect of economy on urbanization.
Journal: Applied Economics
Pages: 4585-4605
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161720
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161720
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4585-4605




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Zhu
Author-X-Name-First: Anna
Author-X-Name-Last: Zhu
Title: Maternal employment trajectories and caring for an infant or toddler with a disability
Abstract: 
 Mothers caring for an infant or toddler continue to face barriers in returning to work after child birth. Mothers caring for an infant or toddler with a disability, however, may face even greater barriers. This article contributes to the literature by exploring the employment costs for this group of mothers using a novel Australian administrative data set. The employment patterns of mothers with and without a disabled infant or toddler are compared both before and after child birth. The data follow 7600 mothers on a bi-weekly basis for the entire period 12 months before and the 24 months after child birth and contain information on the disability status of the child, measures of employment and the intensity of employment. I find that mothers of disabled toddlers and infants suffer employment disadvantages relative to mothers of non-disabled children. The employment gaps grow from approximately 6 percentage points shortly after their children are born to 14–17 percentage points when their children are 12–24 months old. The employment gaps exist for full-time employment as well as for short part-time employment.
Journal: Applied Economics
Pages: 4606-4621
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161721
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161721
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4606-4621




Template-Type: ReDIF-Article 1.0
Author-Name: Noa Srebrnik
Author-X-Name-First: Noa
Author-X-Name-Last: Srebrnik
Author-Name: Michel Strawczynski
Author-X-Name-First: Michel
Author-X-Name-Last: Strawczynski
Title: Cyclicality of taxes and external debt
Abstract: 
 In their work, Vegh and Vuletin have shown that statutory tax rates are acyclical in developed economies and procyclical in developing ones. This article extends their analysis by checking the interaction of statutory tax rates with countries’ external public debt. In general, we found that the value added tax rates are changed procyclically in both developed and developing countries (i.e. taxes are raised in bad times and reduced in good times). However, when the external debt is high, in the developing countries the procyclicality increases, while the opposite result holds for developed economies. This pattern occurs mainly in times of recession, when the need for loans is the highest. Although we found that there was a reduction in procyclicality after the 2000s, these findings pose a challenge to policy-makers, who should think of ways of dealing with lack of foreign funds in difficult times.
Journal: Applied Economics
Pages: 4622-4634
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161722
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161722
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4622-4634




Template-Type: ReDIF-Article 1.0
Author-Name: Besma Hkiri
Author-X-Name-First: Besma
Author-X-Name-Last: Hkiri
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Chaker Aloui
Author-X-Name-First: Chaker
Author-X-Name-Last: Aloui
Title: Strength of co-movement between sector CDS indexes and relationship with major economic and financial variables over time and during investment horizons
Abstract: 
 The main purpose of this article is to analyse the co-movement in both time and frequency between financial sector CDS indexes and between these indexes and their main economic and financial control variables for the period 2004–2014. Empirically, we implement the wavelet-squared coherence methodology to analyse the co-movement through time, frequency and power. Our results unveil that the co-movement between the three financial sectors’ CDSs changes through time and investment horizons, stressing the importance of hedging portfolios in real time. Also, we uncover that the changes in co-movement to relatively higher frequencies coincide with the inception of the recent global financial crisis. This result is collaborated with the co-movement between each CDS index and other global risk factors, including crude oil prices, interest rates and equity market volatility. Finally, we compare the wavelet coherence results with those of the DCC-FIAPARCH model and find that the two different approaches provide quite similar conditional correlations over time. Our results are important for investors, debtors, creditors and other decision-makers which are interested in CDS spread co-movements at different frequencies or investment horizons. It would be useful for all market participants to resort to an appropriate frequency domain to have better understanding of the sector CDS interrelationship behaviour in this domain.
Journal: Applied Economics
Pages: 4635-4654
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161723
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161723
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4635-4654




Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Antonakakis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Antonakakis
Author-Name: Vassilios Babalos
Author-X-Name-First: Vassilios
Author-X-Name-Last: Babalos
Author-Name: Clement Kyei
Author-X-Name-First: Clement
Author-X-Name-Last: Kyei
Title: Predictability of sustainable investments and the role of uncertainty: evidence from a non-parametric causality-in-quantiles test
Abstract: 
 In this article, we examine sustainable investments returns predictability based on the U.S. Dow Jones Sustainability Index (DJSI) and a wide set of uncertainty and financial distress indicators for the period 2002:01–2014:12. To this end, we employ a novel non-parametric causality-in-quantile approach that captures non-linearities in returns distribution. Based on our findings we conclude that the aggregate economic policy uncertainty (EPU) indicator and some components have predictive ability for real returns of the U.S. sustainable investments index. Moreover, if we split our sample to before and after the global financial crisis our results suggest that predictors carry causal information for real returns only in the after-crisis period. Finally, some marginal evidence of predictability from sovereign debt is also observed at the lower and upper ends of the conditional distribution of the real returns of sustainable investments. Our results might entail policy implications for investors and market authorities.
Journal: Applied Economics
Pages: 4655-4665
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161724
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161724
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4655-4665




Template-Type: ReDIF-Article 1.0
Author-Name: Kae-Yih Tzeng
Author-X-Name-First: Kae-Yih
Author-X-Name-Last: Tzeng
Author-Name: Joseph Chang Pying Shieh
Author-X-Name-First: Joseph Chang Pying
Author-X-Name-Last: Shieh
Title: The transmission from equity markets to commodity markets in crises periods
Abstract: 
 This article investigates the transmission from equity markets to commodity markets during two major financial crises, namely the Subprime Mortgage and the Sovereign Debt Crises. We perform an analysis on sub-stages from 3 January 2003 to 31 October 2013 to capture the price behaviour of both equity and commodity markets. Two financial crises indicators, VIX and CDS, are used to represent fear of a crisis. We find that correlations between commodity and equity markets are time-varying and highly volatile during a financial crisis. While sharing some common features, commodities cannot be considered a homogeneous asset class. Segmentation characteristics of commodity markets disappear in times of financial crises, reducing their substitutability as an investment portfolio for asset diversification purposes. Through our test for Granger causality, we find the existence of transmission during a financial crisis. Volatility spillover effect also plays a major role as transmission mechanisms. After the collapse of Lehman Brothers, commodities decoupled from the VIX rather soon, and there is an increase in correlation with the CDS. In addition, we find the decoupling effect of most commodities show insignificant correlations with the Dow Jones, VIX and CDS after the Greek debt restructuring.
Journal: Applied Economics
Pages: 4666-4689
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164816
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164816
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4666-4689




Template-Type: ReDIF-Article 1.0
Author-Name: Marion Robert
Author-X-Name-First: Marion
Author-X-Name-Last: Robert
Author-Name: C. Jill Stowe
Author-X-Name-First: C. Jill
Author-X-Name-Last: Stowe
Title: Ready to run: price determinants of thoroughbreds from 2 year olds in training sales
Abstract: 
 This article utilizes data from the complete set of U.S. thoroughbred 2-year-old in-training sales held in 2013 and estimates the determinants of prices for 1806 two-year-old thoroughbreds. The results reveal that the time in which these prospective racehorses run a standardized distance is the most statistically significant determinant of market price. Other individual horse characteristics, pedigree quality variables and sale quality are also found to be price determinants. An additional result of interest is the significant premium buyers are willing to pay for horses by sires of unknown quality.
Journal: Applied Economics
Pages: 4690-4697
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164817
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164817
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4690-4697




Template-Type: ReDIF-Article 1.0
Author-Name: Dörte Heger
Author-X-Name-First: Dörte
Author-X-Name-Last: Heger
Title: Decomposing differences in health and inequality using quasi-objective health indices
Abstract: 
 People in Canada and the United States often make claims regarding whose country has a better health system. Several researchers have attempted to address this question by analysing subjective health measures in the two countries, thus assuming a common definition of ‘good’ health. Using data from the Joint Canada/US Survey of Health, which provides rich and comparable health information for the two countries, I generate two quasi-objective health indices and show that Canadians and Americans define ‘good’ health differently. After controlling for cross-country reporting heterogeneity, health differences between Americans and Canadians are eliminated for intermediate health statuses, while health differences at the tails of the health distribution lead to slightly better average population health in Canada. With respect to health inequality, my results show that income and education gradients increase steeply with poor health in both countries. Hence, considering differences along the health distribution is crucial when assessing population health or health inequality.
Journal: Applied Economics
Pages: 2844-2859
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412073
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412073
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2844-2859




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Ravinesh Kumar
Author-X-Name-First: Ronald Ravinesh
Author-X-Name-Last: Kumar
Author-Name: Peter Josef Stauvermann
Author-X-Name-First: Peter Josef
Author-X-Name-Last: Stauvermann
Author-Name: Nikeel N. Kumar
Author-X-Name-First: Nikeel N.
Author-X-Name-Last: Kumar
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Title: Revisiting the threshold effect of remittances on total factor productivity growth in South Asia: a study of Bangladesh and India
Abstract: 
 Both Bangladesh and India are among the top recipient of remittances in absolute terms. However, in relative terms – remittances as a per cent of GDP – the two countries stand at 6.1% and 2.8%, respectively, well below the levels of the top 10 recipients. In this article, we explore the effect of remittances on the total factor productivity (TFP) growth considering Bangladesh and India, as reference countries over the periods 1980–2012 and 1977–2012, respectively. We examine the presence of a long-run association between remittances and TFP using a number of tests. The results indicate that remittances have threshold effects on TFP growth in both countries. Despite the two countries receiving substantial amount of remittances, we note that Bangladesh has a U-shaped relationship whereas India has an inverted U-shaped relationship with TFP growth. For Bangladesh, a minimum threshold of remittances (% GDP) is 5.3% and for India, a tipping point of remittances (% GDP) is at 1.8%. The causality tests confirm a bidirectional effect, which implies that remittances and TFP growth are mutually reinforcing. Interestingly, while the two economies have similar remittances impact in regards to causality, the study highlights two different tipping points of remittances.
Journal: Applied Economics
Pages: 2860-2877
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412074
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412074
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2860-2877




Template-Type: ReDIF-Article 1.0
Author-Name: Narelle Gordon
Author-X-Name-First: Narelle
Author-X-Name-Last: Gordon
Author-Name: Qiongbing Wu
Author-X-Name-First: Qiongbing
Author-X-Name-Last: Wu
Title: Informed trade, uninformed trade and stock price delay
Abstract: 
 The probability of informed trading (PIN), a measure of information-based trading risk,  has been broadly applied to empirical studies on asset pricing. However, it is still controversial whether PIN measures exclusively the risk of firm-specific private information or it also captures the private interpretation of market wide public information. This article examines the relevance of PIN to the delayed response of stock prices to market-wide information. We find that PIN significantly explains individual stock price delay even controlling for size, liquidity and risk, and low-PIN stock prices adjust to market information more rapidly not only because of a notably high level of informed trading but also an even much higher level of uninformed trading. Our findings support the notion that PIN also captures the private skilled interpretation of public common factor information by sophisticated investors, and provide new empirical evidence on how information-based trading affects the speed at which stock prices adjust to information.
Journal: Applied Economics
Pages: 2878-2893
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412075
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412075
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2878-2893




Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Cerda
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Cerda
Author-Name: Álvaro Silva
Author-X-Name-First: Álvaro
Author-X-Name-Last: Silva
Author-Name: José Tomás Valente
Author-X-Name-First: José Tomás
Author-X-Name-Last: Valente
Title: Impact of economic uncertainty in a small open economy: the case of Chile
Abstract: 
 We construct the first news-based economic uncertainty index for Chile, which allowed us to rebuild 23 years of the history of economic uncertainty in the country and quantify its impact on the economy. We find that an increase in economic uncertainty conveys a fall in GDP, investment, and employment, even after accounting for the small open economy nature of Chile. In contrast to previous studies for big and developed economies, we do not find evidence of an overshooting effect when uncertainty dissipates; therefore, increases in economic uncertainty have negative effects on the economy, even in the long-run. Our estimates suggest that these impacts range from 10% to 20% for aggregate investment, 2.5% to 5% for GDP, and 1.3% to 4.2% for employment. Extensions suggest that economic uncertainty affects both mining and non-mining investment, with the former showing a more pronounced decline. We also find that the bulk of effect of economic uncertainty on aggregate investment is via private investment, with some short-run impacts on public investment. Moreover, compared to the GDP response, aggregate consumption responds in almost the same way to an economic uncertainty shock.
Journal: Applied Economics
Pages: 2894-2908
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412076
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412076
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2894-2908




Template-Type: ReDIF-Article 1.0
Author-Name: Dong Hee Suh
Author-X-Name-First: Dong Hee
Author-X-Name-Last: Suh
Author-Name: Charles B. Moss
Author-X-Name-First: Charles B.
Author-X-Name-Last: Moss
Title: Examining crop price effects on production decision and resource allocation: an ex-ante approach
Abstract: 
 This article examines the output price effects on the US crop production, employing an ex-ante approach to the differential systems of input demand and output supply. The estimation results of the differential input demand show that the expansion of crop production leads to an increase in acreage (i.e. extensive margin) and a proportional rise in input usage improving yield per acre (i.e. intensive margin). The substitutable relationship between fertilizer and land supports that crop producers have an option to choose either intensive or extensive margin in response to changes in their relative prices. In addition, the estimation results of the differential output supply highlight that the composition of crop supply can be altered by changes in ex-ante crop prices. The estimation results suggest that crop producers substitute corn supply for the supply of cotton, wheat and soybeans or vice versa. Based on the estimated elasticities, the decompositions of profit-maximizing input demand are conducted, which reveals that a change in ex-ante crop prices is associated closely with resource reallocation.
Journal: Applied Economics
Pages: 2909-2919
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412077
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412077
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2909-2919




Template-Type: ReDIF-Article 1.0
Author-Name: Martina Lawless
Author-X-Name-First: Martina
Author-X-Name-Last: Lawless
Author-Name: Daire McCoy
Author-X-Name-First: Daire
Author-X-Name-Last: McCoy
Author-Name: Edgar L. W. Morgenroth
Author-X-Name-First: Edgar L. W.
Author-X-Name-Last: Morgenroth
Author-Name: Conor M. O”Toole
Author-X-Name-First: Conor M.
Author-X-Name-Last: O”Toole
Title: Corporate tax and location choice for multinational firms
Abstract: 
 This article examines the effects of corporate tax on these location decisions of newly established multinational subsidiaries across 26 European countries over an 8-year period. We contribute to the existing literature by examining the effects of a non-linear response of firm location decisions to changes in the tax rate. We also show that there are large variations in the sensitivity to tax rates across sectors and firm size groups. In particular, financial sector firms are more than twice as sensitive to changes in corporation tax rates relative to other sectors. Our baseline result is a finding that a 1% increase in the statutory or policy rate of corporation tax would lead to a reduction in the conditional location probability of 0.68%. Using the effective average tax rate, the marginal effect implies a reduction in the location probability of 1.15% following a 1% increase in the tax rate. Although overall tax has the expected negative effect on location probability, the marginal effect of an increase is lower at higher rates of tax.
Journal: Applied Economics
Pages: 2920-2931
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412078
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412078
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2920-2931




Template-Type: ReDIF-Article 1.0
Author-Name: Honghai Yu
Author-X-Name-First: Honghai
Author-X-Name-Last: Yu
Author-Name: Libing Fang
Author-X-Name-First: Libing
Author-X-Name-Last: Fang
Author-Name: Sunqi Zhang
Author-X-Name-First: Sunqi
Author-X-Name-Last: Zhang
Author-Name: Donglei Du
Author-X-Name-First: Donglei
Author-X-Name-Last: Du
Title: The role of the political cycle in the relationship between economic policy uncertainty and the long-run volatility of industry-level stock returns in the United States
Abstract: 
 In this study, we investigate how US economic policy uncertainty (EPU) drives the long-run components of volatilities in industry-level stock markets. We use a modified specification of GARCH-MIDAS and find that EPU increases the long-run volatility of the industrials and materials industries and decreases it in 4 of the 10 industries considered here: consumer staples, healthcare, information technology and materials. In addition, we add a dummy variable for the political cycle (PLC) to study whether the relationship between EPU and the volatility of industry returns is significantly different under different political regimes. The results imply that a Republican presidency dampens the effects of EPU on the long-run volatility of the consumer staples, healthcare and information technology industries. We also decompose the aggregated EPU into 11 category-specific EPUs to explore the detailed relationship between category-specific EPU and long-run volatility driven by aggregate EPU. The results for the category-specific EPU are consistent with the findings for the aggregate EPU. In particular, the weakened effect of PLC on the relationship between EPU and the long-run volatility of industry-level returns is also confirmed by MIDAS regression with beta weight scheme.
Journal: Applied Economics
Pages: 2932-2937
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412079
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412079
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2932-2937




Template-Type: ReDIF-Article 1.0
Author-Name: Julio Mancuso
Author-X-Name-First: Julio
Author-X-Name-Last: Mancuso
Author-Name: Christis G. Tombazos
Author-X-Name-First: Christis G.
Author-X-Name-Last: Tombazos
Title: Export sensitivity to time delays and the pattern of international trade
Abstract: 
 A growing body of literature in the field of international trade highlights the increasing importance of the time delays associated with transporting goods over long distances and the differing effect that such delays have on traded goods that exhibit diverse degrees of time-sensitivity. This literature also canvasses the likely changes in the pattern of trade in time-sensitive goods that are likely to have accompanied recent advances in transportation and information and communication technologies. However, the empirical research on these patterns has so far been exploratory and incomplete. We use U.S. import data, on both the intensive and the extensive margin of 70, five-digit level End-Use categories of goods, from 121 countries, during 1991–2017, in an effort to investigate how the pattern of trade in time-sensitive goods has changed in recent years. We identify three distinct features of such changes: (i) trade in time-sensitive goods has expanded dramatically in recent decades, (ii) the production of such goods agglomerates in close proximity to the demand centre, and (iii) regardless of proximity to the demand centre, developed countries have comparative advantage in time-sensitive exportables. These results shed light on a topic of considerable academic interest and have important policy relevant implications.
Journal: Applied Economics
Pages: 1409-1426
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1675862
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1675862
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1409-1426




Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Ladenburg
Author-X-Name-First: Jacob
Author-X-Name-Last: Ladenburg
Author-Name: Ole Bonnichsen
Author-X-Name-First: Ole
Author-X-Name-Last: Bonnichsen
Author-Name: Jürgen Meyerhoff
Author-X-Name-First: Jürgen
Author-X-Name-Last: Meyerhoff
Title: Trading off positive and negative service changes in childcare: a choice experiment using a latent class modelling approach
Abstract: 
 Theoretically, the choice of childcare mode should be influenced by the quality of the childcare attributes. However, such preference relations have been difficult to identify in past studies. One reason lies in the properties of the data collected, such as insufficient variation or strong correlation in the childcare qualities. To make a formal test of parent preferences for childcare qualities, we apply a choice experiment framework, construct a hypothetical market for childcare and ask 1,324 parents to act on the market. The results indicate that parents react positively and negatively to better and poorer childcare qualities, respectively. The results also indicate that the preferences are subject to substantial heterogeneity and that costs of losses in qualities are perceived as being far greater than the corresponding benefits of improvements.
Journal: Applied Economics
Pages: 1427-1445
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1675863
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1675863
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1427-1445




Template-Type: ReDIF-Article 1.0
Author-Name: Murat Tiniç
Author-X-Name-First: Murat
Author-X-Name-Last: Tiniç
Author-Name: Aslıhan Salih
Author-X-Name-First: Aslıhan
Author-X-Name-Last: Salih
Title: Informed trading, order flow shocks and the cross section of expected returns in Borsa Istanbul
Abstract: 
 This paper examines the relationship between information asymmetry and stock returns in Borsa Istanbul. For all stocks that are traded in Borsa Istanbul between March 2005 and April 2017, we estimate the probability of informed trading (PIN) to proxy for information asymmetry.  Firm-level cross-sectional regressions indicate a statistically insignificant relationship between PIN estimates and future returns. Moreover, univariate and multivariate portfolio analyses assert that investors that hold stocks that have high information asymmetry do not obtain significant future returns. Consequently, our results suggest that information asymmetry proxied by PIN is a firm-specific risk and can be eliminated with portfolio diversification. Findings are robust to different factorizations in estimating PIN and free of any bias due to trade classification algorithms, boundary solutions, floating-point exceptions and symmetric order flow shocks.
Journal: Applied Economics
Pages: 1446-1459
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676386
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676386
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1446-1459




Template-Type: ReDIF-Article 1.0
Author-Name: Octavio Fernández-Amador
Author-X-Name-First: Octavio
Author-X-Name-Last: Fernández-Amador
Author-Name: Joseph F. Francois
Author-X-Name-First: Joseph F.
Author-X-Name-Last: Francois
Author-Name: Doris A. Oberdabernig
Author-X-Name-First: Doris A.
Author-X-Name-Last: Oberdabernig
Author-Name: Patrick Tomberger
Author-X-Name-First: Patrick
Author-X-Name-Last: Tomberger
Title: Economic growth, sectoral structures, and environmental methane footprints
Abstract: 
 We analyze the impacts of economic growth on methane emissions per capita at the sectoral level for the period 1997–2014. We cover three stages of the supply chain, distinguishing between emissions embodied in production, final production, and consumption. We investigate the effects of economic growth on two components of methane emissions per capita, namely methane emissions per unit of value added and value added per capita. We uncover substantial heterogeneity across sectors. Economic growth led to expansions of economic activity in all sectors but reduced the methane intensity of sectoral value added in some sectors. In sectors that experienced pronounced reductions in methane intensity, economic growth did not strongly affect emissions per capita. However, in the absence of large methane-intensity gains, economic growth raised emission per capita substantially.
Journal: Applied Economics
Pages: 1460-1475
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676387
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676387
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1460-1475




Template-Type: ReDIF-Article 1.0
Author-Name: Chiou-Fa Lin
Author-X-Name-First: Chiou-Fa
Author-X-Name-Last: Lin
Author-Name: Cheng-Huei Chiao
Author-X-Name-First: Cheng-Huei
Author-X-Name-Last: Chiao
Title: Widening price limit effects: evidence from an emerging stock market
Abstract: 
 This study investigates the impact of the widening of price limits on the Taiwan Stock Exchange, from 7% to 10%, by comparing the differences in performance with the different price limit levels. The empirical results show that after the event: (1) the quoted and effective spreads increased, including the components of realized spread and information asymmetry; (2) the trade-related and quote-related standard deviations and the price discovery became larger. Our outcomes indicate that the widening of price limits was disadvantageous to liquidity, but helpful for price discovery. These results imply that wider price limits are not necessarily always better than narrow price limits in every respect, but that the optimal level of price limits should be based upon the regulators’ intended goals.
Journal: Applied Economics
Pages: 1476-1486
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676388
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676388
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1476-1486




Template-Type: ReDIF-Article 1.0
Author-Name: Jamal Ali Al-Khasawneh
Author-X-Name-First: Jamal Ali
Author-X-Name-Last: Al-Khasawneh
Author-Name: Kameleddine Benameur
Author-X-Name-First: Kameleddine
Author-X-Name-Last: Benameur
Author-Name: Mohammed Z Shariff
Author-X-Name-First: Mohammed Z
Author-X-Name-Last: Shariff
Author-Name: Khiyar Abduallah Khiyar
Author-X-Name-First: Khiyar Abduallah
Author-X-Name-Last: Khiyar
Title: Methods of payment in US banks’ acquisition: efficiency perspectives
Abstract: 
 Does the efficiency classification of acquirers have any effect on the method of payment they select for their acquisition, and does the selected method of payment have any future efficiency consequences? These two questions have never been answered. The objective of this article is to examine the effect of the medium of exchange that US banks use on the consequent cost, revenue, and profit efficiencies of mergers and acquisitions for the period from 1992 to 2003. The results indicate that highly efficient acquirers lose less efficiency when using stocks in financing their acquisitions, while the least efficient acquirers only gain efficiency when mixing stocks with cash in financing their acquisitions. The distributional dynamics in the results of the acquirers’ post-merger profit efficiency show no changes in profit efficiency over time when banks use stock financing but trends towards efficiency loss when using pure cash financing and loses the most when mixing stocks with cash. The contribution of this article is a guideline on the characteristics of efficiency to decision-makers for selecting the medium of exchange in friendly acquisitions given the consequent changes in strategic efficiency after acquisitions.
Journal: Applied Economics
Pages: 1487-1501
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676389
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676389
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1487-1501




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas H.W. Ziesemer
Author-X-Name-First: Thomas H.W.
Author-X-Name-Last: Ziesemer
Title: Can we have growth when population is stagnant? Testing linear growth rate formulas of non-scale endogenous growth models
Abstract: 
 We sub-divide scale-invariant fully or semi-endogenous growth models into six sub-categories for formulas relating steady-state growth rates of income per capita and the growth rate of the population depending on the properties of slopes and intercepts. We capture their steady-state relation by a long-term relation in panel vector-error-correction models for 16 countries and estimate the 16 models simultaneously allowing successively for more heterogeneity. Under slope homogeneity, the slope and intercepts of the growth equations are positive in this setting. However, allowing for heterogeneity there are two main groups of countries: those with non-positive slopes and positive intercepts are a large majority supporting fully endogenous growth; those with positive slopes and zero intercepts are a smaller group supporting semi-endogenous growth. Results therefore favour fully over semi-endogenous growth with and without slope homogeneity and allow for growth rate policies. The more frequent case is that long-run growth can remain positive if population stops growing. Analysis of cross-unit cointegration suggests that long-run results are internationally connected.
Journal: Applied Economics
Pages: 1502-1516
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676391
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676391
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1502-1516




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Hirsch
Author-X-Name-First: Stefan
Author-X-Name-Last: Hirsch
Author-Name: Giulia Tiboldo
Author-X-Name-First: Giulia
Author-X-Name-Last: Tiboldo
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Title: A tale of two Italian cities: brand-level milk demand and price competition
Abstract: 
 We apply the BLP random coefficient logit model demand model to fluid milk sales data from two north-south Italian cities: Turin and Naples. By virtue of their location and socioeconomic differences, these cities provide a natural experiment for contrasting consumer choices and retail market power related to milk physical and marketing characteristics. Results reveal that, regardless of location, consumers negatively value price increases, fat content and ultra-high temperature (UHT) treatment. However, location matters with respect to brand and type of milk purchased. While in Turin (the higher-income region) demand for the leading manufacturers’ brands is the most price inelastic, in Naples consumers have the lowest price elasticities in case of cheaper milk, often small manufacturer or private label brands. Unlike previous studies, we do not find price elasticities for private labels to be consistently lower (or markups to be higher) compared to manufacturer brands, indicating that private labels have reached maturity in these markets. Further, while demand for fresh milk is more price inelastic in Turin, it is more inelastic for UHT milk in Naples. Likewise, markups and Lerner indexes are higher for fresh milk in Turin and for UHT in Naples corresponding to the more inelastic demands under Bertrand price competition.
Journal: Applied Economics
Pages: 5239-5252
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486016
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486016
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5239-5252




Template-Type: ReDIF-Article 1.0
Author-Name: Simona Ferraro
Author-X-Name-First: Simona
Author-X-Name-Last: Ferraro
Author-Name: Jaanika Meriküll
Author-X-Name-First: Jaanika
Author-X-Name-Last: Meriküll
Author-Name: Karsten Staehr
Author-X-Name-First: Karsten
Author-X-Name-Last: Staehr
Title: Minimum wages and the wage distribution in Estonia
Abstract: 
 Abstract: This article studies how changes in the statutory minimum wage have affected the wage distribution in Estonia, a post-transition country with little collective bargaining and relatively large wage inequality. The analyses show that the minimum wage has had substantial spillover effects on wages in the lower tail of the distribution; the effects are most pronounced up to the twentieth percentile and then decline markedly. The minimum wage has contributed to lower wage inequality and this has particularly benefitted low-wage segments of the labour market such as women and the elderly. Interestingly, the importance of the minimum wage for the wage distribution was smaller during the global financial crisis than before or after the crisis.
Journal: Applied Economics
Pages: 5253-5268
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486017
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486017
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5253-5268




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W. Clements
Author-X-Name-First: Kenneth W.
Author-X-Name-Last: Clements
Author-Name: Haiyan Liu
Author-X-Name-First: Haiyan
Author-X-Name-Last: Liu
Author-Name: Yashar Tarverdi
Author-X-Name-First: Yashar
Author-X-Name-Last: Tarverdi
Title: Alcohol consumption, censorship and misjudgement
Abstract: 
 In the study of the economic determinants of alcohol consumption, there is an under-appreciated issue of sample selectivity as consumption is often not fully observed. Sample selectivity involves ignoring consumption below a censorship cut-off level. This article estimates a demand system for beer, wine and spirits with and without allowance for selectivity. Then using a simulation approach, it examines the impact of misjudgement in the censorship level on the estimated demand parameters. A mean squared error (MSE) criterion is suggested for determining the appropriate censorship level.
Journal: Applied Economics
Pages: 5269-5276
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486025
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486025
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5269-5276




Template-Type: ReDIF-Article 1.0
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Román Ferrer
Author-X-Name-First: Román
Author-X-Name-Last: Ferrer
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Rania Jammazi
Author-X-Name-First: Rania
Author-X-Name-Last: Jammazi
Title: Industry-level determinants of the linkage between credit and stock markets
Abstract: 
 This paper examines the relationship between US credit default swaps (CDS) and stock returns on an industry-wide basis across a number of investment horizons, with particular focus on the major determinants of such a relationship. Wavelet analysis is first applied to extract the CDS–stock wavelet correlation for each US industry. Then, Bayesian Model Averaging is employed to identify the key driving factors of the industry CDS–stock wavelet correlations at short- and long-term horizons. The empirical results indicate that the wavelet correlations between the industry CDS and stock returns are primarily negative over time and across time scales. Moreover, the CDS–stock correlation at longer horizons exhibits a much more stable pattern than its counterpart at shorter time frames. The results also demonstrate that the volatility of US Treasury and stock markets, as measured by the MOVE and VIX indices, respectively, the volatility of volatility, as captured by the VVIX index, and US economic policy uncertainty, as measured by the EPU index, are the most robust determinants of the correlation between CDS and stock returns at shorter and longer horizons for most US industries. In contrast, the Fama–French systematic equity factors exhibit a practically negligible explanatory power on the CDS–stock link.
Journal: Applied Economics
Pages: 5277-5301
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486986
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486986
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5277-5301




Template-Type: ReDIF-Article 1.0
Author-Name: Asadul Islam
Author-X-Name-First: Asadul
Author-X-Name-Last: Islam
Author-Name: Steven Stillman
Author-X-Name-First: Steven
Author-X-Name-Last: Stillman
Author-Name: Christopher Worswick
Author-X-Name-First: Christopher
Author-X-Name-Last: Worswick
Title: Can immigrants insure against shocks as well as the native-born?
Abstract: 
 We examine the impact of job displacement and serious health problems on multiple measures of individual and household well-being using longitudinal data. We extend the previous literature by examining whether these shocks have differential effects for the native-born and immigrants and whether shock mitigation strategies and their effectiveness differ by immigration status. Our results suggest that both immigrants and native-born individuals have access to similar institutional and other formal and informal risk-sharing arrangements such that they are able to mitigate shocks against job loss or illness almost equally.
Journal: Applied Economics
Pages: 5302-5315
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486987
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486987
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5302-5315




Template-Type: ReDIF-Article 1.0
Author-Name: Hamidreza Ghorbani Dastgerdi
Author-X-Name-First: Hamidreza
Author-X-Name-Last: Ghorbani Dastgerdi
Author-Name: Zarinah Binti Yusof
Author-X-Name-First: Zarinah Binti
Author-X-Name-Last: Yusof
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Title: Nexus between economic sanctions and inflation: a case study in Iran
Abstract: 
 Conventional studies have applied dummy variables to analyse the relationship between economic sanctions and inflation while we construct an index which is called Trade-Financial Sanctions (TF index). TF Index is a liner combination of indices which includes trade openness and foreign investment by applying the principal component model. Through the TF index and market exchange rate the impact of economic sanctions on inflation is analysed in the three phases of sanctions; free sanctions, heavy sanctions, and light sanctions. The results illustrate that the TF index decreases inflation when the Iran’s economy experiences free sanctions or light sanctions relative to when the economy is in heavy sanctions. Heavy sanctions create instability in the market exchange rates and widening the gap between the market and the official exchange rates. Furthermore, economic sanctions increase expected inflation among the people and drive higher inflation. Therefore, these results suggest that the government should work more seriously to solve the main obstacles of trade and investment inflows imposed by the economic sanctions.
Journal: Applied Economics
Pages: 5316-5334
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486988
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486988
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5316-5334




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Imran Chaudhry
Author-X-Name-First: Muhammad Imran
Author-X-Name-Last: Chaudhry
Author-Name: Abdoul G. Sam
Author-X-Name-First: Abdoul G.
Author-X-Name-Last: Sam
Title: Herding behaviour and the declining value relevance of accounting information: evidence from an emerging stock market
Abstract: 
 This article sheds light on the underlying mechanisms behind the changes in the value relevance of accounting information in the Karachi Stock Exchange (KSE) during the 1999–2010 period. We find that neither changes in earnings quality nor the earnings lack of timeliness hypothesis can explain the decline in the value relevance of accounting information in the KSE. Based on the stylized facts associated with the growth of the KSE and the broader economics literature, we argue that the reduction in the explanatory power of accounting information vis-à-vis stock returns was caused by herding behaviour. Empirical estimates from state-space model of herding behaviour confirm the existence of herding, and we find that the value relevance of accounting information is significantly lower in periods characterized by herding behaviour. This article is also amongst the first attempts to empirically demonstrate that an expansionary monetary policy and increases in foreign portfolio investment lead to increased levels of herding.
Journal: Applied Economics
Pages: 5335-5353
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486989
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486989
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5335-5353




Template-Type: ReDIF-Article 1.0
Author-Name: Satish Kumar
Author-X-Name-First: Satish
Author-X-Name-Last: Kumar
Author-Name: Rajesh Pathak
Author-X-Name-First: Rajesh
Author-X-Name-Last: Pathak
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Are exchange rates interdependent? Evidence using wavelet analysis
Abstract: 
 We examine the co-movement in daily returns of USD–INR, EUR–INR, GBP–INR, and JPY–INR currency pair futures contracts traded on the National Stock Exchange of India (NSE) using the wavelet cohesion approach. This study contributes to the literature by examining the scantly studied area of co-movement in exchange rates and using the wavelet approach, which allows us to analyse time–frequency-wise co-movement of the time series. The empirical results indicate that the currency futures markets are nearly perfectly integrated in the long run (monthly, quarterly and biannual scales) offering little potential gains from international portfolio diversification. The discrepancies between currency futures markets are small and almost fade away within 3–6 months. Moreover, international currency diversification might offer relatively higher potential gains at intraweek, weekly, and fortnightly time horizons owing to lower correlations among the currencies under consideration. Finally, our multiple-wavelet correlation and cross-correlation analysis shows that GBP acts as a potential leader/follower across scales. The results of our analysis indicate the dynamic pattern of co-movement among the major currency futures contracts, which provides several implications for portfolio managers and international investors participating in the Indian market.
Journal: Applied Economics
Pages: 3231-3245
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257108
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257108
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3231-3245




Template-Type: ReDIF-Article 1.0
Author-Name: David E. Allen
Author-X-Name-First: David E.
Author-X-Name-Last: Allen
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Author-Name: Robert Powell
Author-X-Name-First: Robert
Author-X-Name-Last: Powell
Author-Name: Abhay K. Singh
Author-X-Name-First: Abhay K.
Author-X-Name-Last: Singh
Title: Volatility spillover and multivariate volatility impulse response analysis of GFC news events
Abstract: 
 This article applies two measures to assess spillovers across markets: the Diebold and Yilmaz’s (2012) spillover index and the Hafner and Herwartz’s (2006) analysis of multivariate GARCH models using volatility impulse response analysis. We use two sets of data, daily realized volatility (RV) estimates taken from the Oxford-Man RV library, for the S&amp;P500 and the FTSE, plus 10 years of daily returns series for the New York Stock Exchange Index and the FTSE 100 index. Both data sets capture both the global Financial Crisis (GFC) and the subsequent European Sovereign Debt Crisis (ESDC). The spillover index captures the transmission of volatility to and from markets, plus net spillovers. The Volatility Impulse Responses (VIRF) have to be calibrated to conditional volatility estimated at a particular point in time. We explore the impact of three different shocks, the onset of the GFC, the height of the GFC, and the impact of the ESDC. Our modelling includes leverage and asymmetric effects applying a multivariate GARCH model, and further analysis using both BEKK and diagonal BEKK (DBEKK) models. We find the impact of negative shocks is larger, but shorter in duration, in this case a difference between 3 and 6 months.
Journal: Applied Economics
Pages: 3246-3262
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257210
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257210
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3246-3262




Template-Type: ReDIF-Article 1.0
Author-Name: Amar I. Anwar
Author-X-Name-First: Amar I.
Author-X-Name-Last: Anwar
Author-Name: Mazhar Y. Mughal
Author-X-Name-First: Mazhar Y.
Author-X-Name-Last: Mughal
Title: Out of Africa? Locational determinants of South African cross-border mergers and acquisitions
Abstract: 
 South Africa is the Africa’s biggest source of outward foreign direct investment. This study examines the principal locational motives of cross-border mergers and acquisitions CBMA by South African firms for the 1990–2014 period. The role of inter-country cultural and economic linkages is also studied. Firm-level data of South African merger and acquisition activities in 74 host countries are used to estimate a number of model specifications that control for host-country economic, geographical, cultural and institutional characteristics. Estimations are carried out using random-effects negative binomial panel model. Capturing the host-economy market and enhancing efficiency are found to be the two major motives driving South African corporations’ CBMA activities. Natural resources acquisition seems a less important motive, while strategic assets such as patents and technology do not appear to be attractive. The role of cultural and economic linkages between the home and the host country is found to be substantial. South African firms prefer investing in Africa, particularly in countries bordering South Africa. In light of the study’s findings, South African CBMA activities can be compared with those from other emerging economies.
Journal: Applied Economics
Pages: 3263-3279
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257211
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257211
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3263-3279




Template-Type: ReDIF-Article 1.0
Author-Name: Axel Grossmann
Author-X-Name-First: Axel
Author-X-Name-Last: Grossmann
Author-Name: Chris Paul
Author-X-Name-First: Chris
Author-X-Name-Last: Paul
Author-Name: Marc W. Simpson
Author-X-Name-First: Marc W.
Author-X-Name-Last: Simpson
Title: An evaluation of the equilibrium value of the euro, its predecessors and their constituent currencies based on economic fundamentals
Abstract: 
 This study presents constructed equilibrium exchange rates (EERs) of the euro and its predecessors the European Unit of Account and the European Currency Unit, as well as the euro’s member states using a relative version of purchasing power parity (PPP) equilibrium. The revealed patterns of over- and undervaluation demonstrate how well suited the northern member states, in contrast to the southern states, were for the monetary union. Moreover, a relative persistent overvaluation for Greece and Portugal suggests that their ambition to join the euro reduced their competitiveness. The constructed EERs of the euro suggest the European Commission was able to set the initial value of the euro with a high degree of accuracy. Furthermore, the EERs indicate a successive strengthening of the fundamental value of the euro versus the U.S. dollar from 1999 to 2015. The analysis shows a close correlation between the deviations from equilibrium and the events of Greece’s sovereign debt crisis. In addition, the presented graphs show strong support for the PPP hypothesis. The results are robust to different constructed EERs and offer a guide to international market participants interested in the general equilibrium path of the euro and its predecessors.
Journal: Applied Economics
Pages: 3280-3312
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259747
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259747
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3280-3312




Template-Type: ReDIF-Article 1.0
Author-Name: Felisitas Defung
Author-X-Name-First: Felisitas
Author-X-Name-Last: Defung
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: Economic liberalization and sources of productivity growth in Indonesian Banks: is it efficiency improvement or technological progress?
Abstract: 
 This article investigates the sources of productivity growth in the Indonesian banking sector during 23 years period from 1993 to 2015. The industry has gone through several episodes of policy reforms, starting from the radical deregulation in the late 1980s, the restructuring period following the 1997 Asian financial crisis, the consolidation period in the mid-2000s to the economic expansion in the 2010s. Using panel data of 98 commercial banks, we explore productivity growth using Malmquist indices complemented with bootstrapping technique to provide measures of the statistical precision of the results. The Malmquist index measures total factor productivity, efficiency change and technological change. Results show that productivity improves moderately and appears to be less volatile towards the end of the period. Furthermore, efficiency change tends to be the main source of productivity improvement rather than technological change.
Journal: Applied Economics
Pages: 3313-3327
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259748
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259748
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3313-3327




Template-Type: ReDIF-Article 1.0
Author-Name: Aviad Tur-Sinai
Author-X-Name-First: Aviad
Author-X-Name-Last: Tur-Sinai
Author-Name: Dmitri Romanov
Author-X-Name-First: Dmitri
Author-X-Name-Last: Romanov
Author-Name: Noam Zussman
Author-X-Name-First: Noam
Author-X-Name-Last: Zussman
Title: The true effect of students’ employment on the duration of studies
Abstract: 
 We examine the effect of the first-degree students’ employment on the prolongation of their studies. When employing a popular instrumental variable, the regional unemployment rate, we find a negative impact of students’ employment on duration of studies. Then, adding a predetermined IV – the individual’s employment prior to the beginning of academic studies – turns the estimate positive. Furthermore, we find that the relationship between the extent of students’ employment and duration of their studies depends on their age: among the younger students (aged 22–26), the extent of employment has no effect on the duration of studies, while among the older students, the effect is positive and statistically significant.
Journal: Applied Economics
Pages: 3328-3340
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259749
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259749
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3328-3340




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy M. Diette
Author-X-Name-First: Timothy M.
Author-X-Name-Last: Diette
Author-Name: Manu Raghav
Author-X-Name-First: Manu
Author-X-Name-Last: Raghav
Title: Does early bird catch the worm or a lower GPA? Evidence from a liberal arts college
Abstract: 
 Research in psychology has shown that early morning classes are not conducive to learning because of the peculiar sleep cycles of adolescents and young adults that cause them to be especially groggy in the morning. Our study examines the relationship between the times that classes are offered and the grades that students in these classes earn at a highly selective liberal arts college. Our main findings are that morning classes are harmful for student achievement. Grades are especially lower for classes that were scheduled at 8 am and 9 am. Moreover, while students of both genders are adversely affected by early morning courses, the effects are particularly pronounced for male students. This institution assigns students randomly to different sections of the same course, thus creating a quasi-natural experiment and enabling us to control for unobserved characteristics of students. In addition, we include student and faculty fixed effects.
Journal: Applied Economics
Pages: 3341-3350
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259750
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259750
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3341-3350




Template-Type: ReDIF-Article 1.0
Author-Name: Bassem Kamar
Author-X-Name-First: Bassem
Author-X-Name-Last: Kamar
Author-Name: Damyana Bakardzhieva
Author-X-Name-First: Damyana
Author-X-Name-Last: Bakardzhieva
Author-Name: Mohamed Goaied
Author-X-Name-First: Mohamed
Author-X-Name-Last: Goaied
Title: Effects of pro-growth policies on employment: evidence of regional disparities
Abstract: 
 The main objective of our research is to study the direct impact of pro-growth economic policies on employment creation globally and regionally, as evidence has countered policy-makers’ expectation that output growth leads automatically to job creation. We innovate by using the ratio of employment to the population above 25 years as dependent variable instead of the customary employment elasticity. We apply generalized methods of moments’ econometrics on dynamic panel data models and find that growth stimulates employment creation on average across 76 countries. The policies promoting private sector credit, investments, openness, services, education spending, tertiary enrollment, and a fixed exchange rate are the ones that create employment. Larger government size undermines job creation, while policies promoting FDI and industrial development fail to stimulate employment. However, we establish that the effect of pro-growth policies on employment varies significantly across regions, with evidence of weaker links between economic policies and employment in Sub-Saharan Africa and the Middle East.
Journal: Applied Economics
Pages: 4337-4367
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591596
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591596
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4337-4367




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Magee
Author-X-Name-First: Stephen
Author-X-Name-Last: Magee
Author-Name: Hongshik Lee
Author-X-Name-First: Hongshik
Author-X-Name-Last: Lee
Author-Name: Junyun Kim
Author-X-Name-First: Junyun
Author-X-Name-Last: Kim
Title: Evidence and explanation for the Tariff-lobbying paradox: endogenous Tariffs fall as protectionist lobbying rises
Abstract: 
 Recent empirical evidence suggests that U.S. protectionist lobbying expenditures rose while U.S. trade barrier fell. We find that the same result holds in our panel data sample from 28 countries between 1995 and 2011. We find two economic drivers cause the paradox between increasing protectionist lobbying and decreasing trade barrier. First, trade barriers decline as country capital-labour ratio endowments rise because of the rising political and economic power of capital that lobbies for free-trade. Second, factor intensities in production become more similar as factor-intensity convergence. This flattens the production possibility curve between exportable and import-competing production so that changes increased magnification in both factor rewards. In our panel, the magnification parameters are twice as high for capital as for labour (8.6 vs. 5.1). And, the elasticity of the capital return with respect to country capital-labour factor endowment ratios (.59) is nearly twice those of labour (.22). Increased magnification causes thus labour’s increased lobbying for protection to be more than offset by increased capital lobbying against protection. In short, while an increasing labour lobbies for protection as countries advance, combined tariff and non-tariff protection (OTRI) decline significantly as advanced countries get richer. This explains the tariff-protectionist-lobbying paradox.
Journal: Applied Economics
Pages: 4368-4384
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591604
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591604
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4368-4384




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M. Blau
Author-X-Name-First: Benjamin M.
Author-X-Name-Last: Blau
Author-Name: Todd G. Griffith
Author-X-Name-First: Todd G.
Author-X-Name-Last: Griffith
Author-Name: Ryan J. Whitby
Author-X-Name-First: Ryan J.
Author-X-Name-Last: Whitby
Title: Information in stock prices: the case of the 2016 U.S. presidential election
Abstract: 
 On the day before the 2016 U.S. presidential election, the odds of Hillary Clinton winning the presidency, according to political prediction markets, were above 90%. Surprisingly, Donald Trump won the Electoral College handily. In this study, we examine how movements in specific stock prices foreshadowed the eventual outcome. Specifically, we conduct a series of standard event-study tests focused on pharmaceutical companies, which became a focal point during the presidential campaign. Results show that while stocks of pharmaceutical companies significantly underperformed the market prior to the election, prices substantially increased beginning three days before the election outcome. This increase is both statistically significant and economically meaningful and robust to various event-study methodologies. These results suggest that some sectors of the stock market seemed to anticipate the election outcome.
Journal: Applied Economics
Pages: 4385-4396
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591608
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591608
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4385-4396




Template-Type: ReDIF-Article 1.0
Author-Name: Xuebing Yang
Author-X-Name-First: Xuebing
Author-X-Name-Last: Yang
Author-Name: Lili Chen
Author-X-Name-First: Lili
Author-X-Name-Last: Chen
Title: Physical productivity of new firms: it is not as high as it appears
Abstract: 
 This paper argues that the physical productivity of new firms is not as high as it is measured with conventional approaches. The overestimation is due to two reasons, both of which are related to the underestimation of production inputs of new firms. On the extensive margin, while conventional approaches implicitly assume the share of production costs in the total costs is the same for all firms, new firms spend a larger share of their costs on production. On the intensive margin, conventional approaches usually use capital stock as the proxy for capital input and tacitly assume a constant ratio between capital service and capital stock, whereas new firms tend to use their capital more intensively. Failure to incorporate the two facts leads to economically significant inflation in the measured physical productivity of new firms.
Journal: Applied Economics
Pages: 4397-4410
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591609
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591609
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4397-4410




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Camilo Galvis Ciro
Author-X-Name-First: Juan Camilo
Author-X-Name-Last: Galvis Ciro
Author-Name: Juan Camilo Anzoátegui Zapata
Author-X-Name-First: Juan Camilo
Author-X-Name-Last: Anzoátegui Zapata
Title: Disagreement in inflation expectations: empirical evidence for Colombia
Abstract: 
 The literature on expectation disagreements in emerging economies is scarce. This paper examines the disagreements in inflation expectations for the Colombian economy during the 2010–2017 period. We combine empirical tests with an analysis of a monthly survey of expectations of financial analysts in Colombia to obtain valuable evidence to formulate guidelines on the expectations modelling in developing economies. The findings indicate that disagreements present inertia and that inflation volatility increases disagreements. However, the central bank’s stance, as established through a press release, can reduce disagreement. Moreover, if central bank communication is clear and there is a credible inflation target, there tend to be fewer disagreements.
Journal: Applied Economics
Pages: 4411-4424
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591610
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591610
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4411-4424




Template-Type: ReDIF-Article 1.0
Author-Name: Madurika Nanayakkara
Author-X-Name-First: Madurika
Author-X-Name-Last: Nanayakkara
Author-Name: Sisira Colombage
Author-X-Name-First: Sisira
Author-X-Name-Last: Colombage
Title: Do investors in Green Bond market pay a premium? Global evidence
Abstract: 
 We examine the pricing difference of Green Bonds (GB) and conventional bonds (CBs) in capital markets worldwide. Credit spread is used to observe whether investors would like to pay a premium for GBs over CBs. This study uses panel data regression with hybrid model to analyse daily observations over the period 2016 to 2017. We employ Option-Adjusted spread (OAS) to measure the credit spreads of bonds while controlling for bond specific, macroeconomic and global factors that influence the spread. With the hybrid model used in the panel data analysis, we were able to capture the fixed-effects of variables in a random effect model. We find that GBs are traded at a premium of 63 basis points (BPS), compared with a comparable corporate bond issue. We find that the green label provides issuers an incentive to raise funds through issuing GBs while providing investors an opportunity to diversify their investments returns. Our findings provide several implications to the major stakeholders driving the GB market to scale up the market to finance the required level of global green investment needs. We stress an urgent need to support the growth of the GB market to achieve sustainable development through mitigating climate change challenges.Abbreviation GB: Green Bond; CB: Conventional Bond; YS: Yield Spread; BPS: Basis Points; OAS: Option-Adjusted Spread; PCSE: Panels Corrected Standard Errors; CPI: Consumer Price Index; GBPs: Green Bond Principles; CBS: Climate Bond Standard
Journal: Applied Economics
Pages: 4425-4437
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591611
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591611
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4425-4437




Template-Type: ReDIF-Article 1.0
Author-Name: Ran Tao
Author-X-Name-First: Ran
Author-X-Name-Last: Tao
Title: Fundraising under two-dimensional asymmetric information: the case of mindless donations
Abstract: 
 The paper develops a model of charity’s choice of fundraising method under two dimensions of asymmetric information, quality and purpose. The main implication from this model is a separating equilibrium where the higher-quality charity uses a traditional fundraising method, while the lower-quality one exploits a low-stakes, take-it- or leave-it, ‘mindless’ method. Empirical results support the hypothesis that charities of lower quality are more likely to adopt the mindless fundraising method. Even so, consumers still choose to give in the equilibrium, due to the small requested amount of mindless donations, which disincentivizes serious thinking by consumers. The mindless method, along with purpose uncertainty, has the potential to alleviate the free-riding problem that is characteristic of public good provision and is, therefore, welfare improving.
Journal: Applied Economics
Pages: 4438-4454
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1593314
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593314
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4438-4454




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Hussey
Author-X-Name-First: Andrew
Author-X-Name-Last: Hussey
Author-Name: Michael Jetter
Author-X-Name-First: Michael
Author-X-Name-Last: Jetter
Title: Long term trends in fair and unfair inequality in the United States
Abstract: 
 This article analyses the microeconomic sources of wage inequality in the United States from 1967–2012. Decomposing inequality into factors categorized by degree of personal responsibility, education explains over twice as much of inequality today as 45 years ago. However, neither hours worked nor education, industry, marital status, or geographical location can explain the rise in income inequality. In fact, ‘unfair’ inequality (income disparity derived from non-responsibility factors) has risen faster than ‘fair’ inequality (income disparity derived from responsibility factors), regardless of the set of variables chosen as fair sources of inequality. We further examine income inequalities within gender and racial groups, finding substantial heterogeneity. Overall, using micro data to understand the sources of inequality and how these changes over time can provide better information for policymakers motivated to combat rising inequality.
Journal: Applied Economics
Pages: 1147-1163
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213362
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213362
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1147-1163




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel J. Henderson
Author-X-Name-First: Daniel J.
Author-X-Name-Last: Henderson
Author-Name: Léopold Simar
Author-X-Name-First: Léopold
Author-X-Name-Last: Simar
Author-Name: Le Wang
Author-X-Name-First: Le
Author-X-Name-Last: Wang
Title: The three s of public schools: irrelevant inputs, insufficient resources and inefficiency
Abstract: 
 We examine the educational production function and efficiency of public school districts in Illinois. Using non-parametric kernel methods, we find that most traditional schooling inputs are irrelevant in determining test scores (even in a very general setting). Property tax caps are the only relevant factor that is related to districts’ financial constraints and have predominantly negative associations with test scores. Therefore, insufficient resources may be partially responsible for the lack of growth in test scores. For most other relevant inputs, we find substantial heterogeneity in the returns, which helps reconcile some of the puzzling results in the literature. We further find that there exist inefficiencies in school districts. Moreover, the level of test scores, commonly used as a measure of school effectiveness, (while related) differs substantially from our efficiency scores, and standard parametric approaches drastically underestimate school efficiency. We discuss the policy implications of our results.
Journal: Applied Economics
Pages: 1164-1184
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213363
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213363
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1164-1184




Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Joshua C. Hall
Author-X-Name-First: Joshua C.
Author-X-Name-Last: Hall
Author-Name: Maria Y. Tackett
Author-X-Name-First: Maria Y.
Author-X-Name-Last: Tackett
Title: Non-public competition and public school performance: evidence from West Virginia
Abstract: 
 In this study, we investigate whether non-public school enrolment affects the performance of public school districts. If homeschooling and private schools act as competition, public school districts test scores should be positively associated with non-public enrolment. Using data on West Virginia county school districts, and controlling for endogeneity with an instrumental variables approach, we find that a one standard deviation increase in relative non-public enrolment in a county is associated with statistically significant improvements in public school district test scores. Our findings thus confirm that non-public enrolment and the competition it provides act to improve, rather than impede, public school performance.
Journal: Applied Economics
Pages: 1185-1193
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213364
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213364
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1185-1193




Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Yop Oh
Author-X-Name-First: Dong-Yop
Author-X-Name-Last: Oh
Author-Name: Hyejin Lee
Author-X-Name-First: Hyejin
Author-X-Name-Last: Lee
Title: LM cointegration tests allowing for an unknown number of breaks: implications for the forward rate unbiasedness hypothesis
Abstract: 
 This article extends the Lagrange multiplier (LM) cointegration test proposed by Westerlund and Edgerton (WE 2007) by allowing for an unknown number of breaks. Monte Carlo simulations provide two main results. First, a loss of power in the LM cointegration tests is detected when potential multiple breaks are ignored. Second, the modified testing procedures do not affect the asymptotic distribution and major properties of the tests of WE under the null, but noticeably increase their testing power in presence of multiple breaks. We also provide empirical applications of the proposed tests for the forward rate unbiasedness hypothesis (FRUH). The results reveal that the FRUH does hold when the effects of the multiple structural breaks are taken into account.
Journal: Applied Economics
Pages: 1194-1203
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213366
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213366
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1194-1203




Template-Type: ReDIF-Article 1.0
Author-Name: Justin L. Davis
Author-X-Name-First: Justin L.
Author-X-Name-Last: Davis
Author-Name: Kevin Krieger
Author-X-Name-First: Kevin
Author-X-Name-Last: Krieger
Title: Preseason bias in the NFL and NBA betting markets
Abstract: 
 This study extends research in the sports gaming literature by examining the efficiency of betting markets related to preseason professional sporting events. Using NFL (1995–2014) and NBA (2005–2014) data from preseason games, we examine the pricing efficiency of point spreads in these markets and consider evidence of systematic mispricing. Findings suggest point spreads are too large in these situations, providing a profitable betting opportunity for those willing to systematically wager on underdogs. Similar findings are not seen within the context of NFL or NBA regular seasons. These findings are more pronounced as preseason point spreads become larger. Further stratification by week of the NFL preseason demonstrates that underdogs discontinue their superior performance for the one week (Week 3) in which clubs tend to expel a higher level of effort.
Journal: Applied Economics
Pages: 1204-1212
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213367
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213367
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1204-1212




Template-Type: ReDIF-Article 1.0
Author-Name: Yoonsuk Lee
Author-X-Name-First: Yoonsuk
Author-X-Name-Last: Lee
Author-Name: B. Wade Brorsen
Author-X-Name-First: B. Wade
Author-X-Name-Last: Brorsen
Title: Permanent shocks and forecasting with moving averages
Abstract: 
 Moving averages are a common method of forecasting futures basis. We argue that the optimal lengths of moving averages depend on the frequency of structural breaks. A new stochastic time-series process including structural breaks is modelled by discrete probability distributions that capture the frequency and size of structural breaks. A permanent shock (means structural breaks in this article) is captured by a Poisson-jump or a Bernoulli-jump process, and a temporary shock is represented by a white noise process. Futures basis data are used to estimate the frequency of permanent shocks as well as the size of both shocks. Most shocks are permanent shocks. Since most shocks are permanent, the most recent year provides the best forecast and the optimal length of the moving average is one.
Journal: Applied Economics
Pages: 1213-1225
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213368
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213368
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1213-1225




Template-Type: ReDIF-Article 1.0
Author-Name: Philipp Grunau
Author-X-Name-First: Philipp
Author-X-Name-Last: Grunau
Author-Name: Marco Pecoraro
Author-X-Name-First: Marco
Author-X-Name-Last: Pecoraro
Title: Educational mismatch and promotions to managerial positions: a test of the career mobility theory
Abstract: 
 Career mobility theory suggests that given a certain occupation, schooling improves upward mobility in terms of promotion and wage growth. We are the first to test the implications of this theory for over- and undereducation by means of direct information about promotions to managerial positions. Using German administrative data entailing an employer-reported – and hence objective – measure of educational requirements, we show that overeducated workers are indeed more likely to be promoted and that this career mobility advantage is more pronounced in the early stages of their working lives. By contrast, undereducated workers are less likely to be promoted to managerial positions. Moreover, in terms of wage growth, while overeducated workers benefit more, undereducated workers benefit less from promotions than their well-matched educational peers. Altogether, these findings strongly support the career mobility theory. Furthermore, by differentiating between internal and external promotions, we provide evidence that promotions are more likely for overeducated workers within the establishment, whereas the opposite applies for undereducated workers. This finding indicates the relevance of both over- and undereducation as signals of true ability to other employers.
Journal: Applied Economics
Pages: 1226-1240
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213369
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213369
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1226-1240




Template-Type: ReDIF-Article 1.0
Author-Name: Edina I. Findrik
Author-X-Name-First: Edina I.
Author-X-Name-Last: Findrik
Author-Name: Ulrich B. Morawetz
Author-X-Name-First: Ulrich B.
Author-X-Name-Last: Morawetz
Title: Who would pay more for a fragrance-free laundry detergent? How health information affects valuation
Abstract: 
 Fragrance allergy is a lifelong condition, and the probability of being affected increases with frequent exposure to fragrance. Currently, fragrance-free laundry detergents are not common in supermarkets. We used a contingent valuation among Austrian consumers in a within-respondent treatment to estimate how willingness to pay is influenced by health information. We found that higher income groups have a higher willingness to pay for fragrance-free detergents. Informing consumers about health impacts substantially increases this difference. Our simulation shows that lower-income groups benefit from health information only if low-priced fragrance-free detergents are available on the market.
Journal: Applied Economics
Pages: 2453-2467
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545081
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545081
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2453-2467




Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Hundt
Author-X-Name-First: Steffen
Author-X-Name-Last: Hundt
Author-Name: Andreas Horsch
Author-X-Name-First: Andreas
Author-X-Name-Last: Horsch
Title: Sponsorship of the FIFA world cup, shareholder wealth, and the impact of corruption
Abstract: 
 The Fédération Internationale de Football Association's World Cup (FIFA WC) is one of the most popular sporting events in the world in general and Europe in particular, and famous for the extraordinary amount of sponsorship fees it attracts. To create value for the stockholders of FIFA’s respective commercial affiliates, these sponsorship expenses should be exceeded by (discounted) future cash flows in order to make this investment profitable. This study analyses return effects for stockholders of FIFA WC Commercial Affiliates, while distinguishing between several image scenarios pertaining to FIFA and applying several models for calculating abnormal returns. We find weak evidence for significant positive abnormal returns of announced FIFA sponsorships in case of a stable FIFA image across different return models. In contrast, we find negative abnormal returns when the latest corruption scandals around FIFA became public. We also detect negative price effects when Gianni Infantino was announced as new FIFA president. The image-related price effects become less pronounced for FIFA Partners and initially closed sponsorship contracts. Finally, we do not find any image-related spillover effects for main competitors of firms sponsoring FIFA.
Journal: Applied Economics
Pages: 2468-2491
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545082
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545082
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2468-2491




Template-Type: ReDIF-Article 1.0
Author-Name: Jaewoon Koo
Author-X-Name-First: Jaewoon
Author-X-Name-Last: Koo
Author-Name: Kyunghee Maeng
Author-X-Name-First: Kyunghee
Author-X-Name-Last: Maeng
Title: Investment opportunities and cash holdings of firms: an empirical study on Korean firms
Abstract: 
 We find that the cash flow sensitivity of cash holdings of firms whose investment opportunities are lower is significantly higher by examining a panel data of 898 Korean firms for 1999–2014. The cash flow sensitivity of investment is also found to be lower in case of low investment opportunity. Both findings suggest that firms decide to hold cash in response to an increase in cash flow when they do not have a good investment opportunity. Precautionary motive because of financial constraints and uncertainty, and agency problems, however, are not associated with the cash flow sensitivity of cash holdings. These findings imply that it is necessary to develop new investment opportunities to encourage firms to spend more cash in Korea.
Journal: Applied Economics
Pages: 2492-2500
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545083
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545083
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2492-2500




Template-Type: ReDIF-Article 1.0
Author-Name: David Byrne
Author-X-Name-First: David
Author-X-Name-Last: Byrne
Author-Name: Robert Kelly
Author-X-Name-First: Robert
Author-X-Name-Last: Kelly
Title: Bank asset quality & monetary policy pass-through
Abstract: 
 The funding mix of European firms is weighted heavily towards bank credit, which underscores the importance of efficient pass-through of monetary policy actions to lending rates faced by firms. Euro area pass-through has shifted from being relatively homogenous to being fragmented and incomplete since the financial crisis. Distressed loan books are a crisis hangover with direct implications for profitability, hampering banks ability to supply credit and lower loan pricing in response to reductions in the policy rate. This paper presents a parsimonious model to decompose the cost of lending and highlight the role of asset quality in diminishing pass-through. Using bank-level data over the period 2008–2014, we empirically test the implications of the model. We show that a one percentage point increase in the impairment ratio lowering short run pass-through by 3%. We find that banks with severely impaired balance sheets do not adjust their loan pricing in response to changes in the policy rate at all. We derive a measure of the hidden bad loan problem, the NPL gap, which we define as the excess of non-performing loans over impaired loans. We show that it played a significant role in the fragmentation of euro area pass-through post-crisis.
Journal: Applied Economics
Pages: 2501-2521
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1546953
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1546953
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2501-2521




Template-Type: ReDIF-Article 1.0
Author-Name: Aviad Tur-Sinai
Author-X-Name-First: Aviad
Author-X-Name-Last: Tur-Sinai
Author-Name: Efrat Averbach
Author-X-Name-First: Efrat
Author-X-Name-Last: Averbach
Title: The visible and the hidden behind migrants’ human capital
Abstract: 
 The paper explores differences in human capital between the Israel-born and immigrants within the Jorgenson and Fraumeni model. Using a unique ‘imputed education’ method, the study answers whether the immigrants’ level of education, in fact, reflects their human capital. The results show that immigrants during their first years do not work in an occupation that fits their education; this holds their estimated human capital below that of the Israel-born. Over the years, the gap between immigrants and non-immigrants in per-capita human capital contracted from 30 percent to 14 percent on average, or, using the imputation method, from 23 percent to 9 percent. In addition, the gaps between the immigrants and nonimmigrants and those between original education and imputed education contract at higher education levels. Some immigrants were able to find an occupation that matched their education and to integrate into the local job market, and the per-capita human capital of immigrants and nonimmigrants converged.
Journal: Applied Economics
Pages: 2522-2533
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1546954
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1546954
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2522-2533




Template-Type: ReDIF-Article 1.0
Author-Name: Dmitriy V. Chulkov
Author-X-Name-First: Dmitriy V.
Author-X-Name-Last: Chulkov
Author-Name: John M. Barron
Author-X-Name-First: John M.
Author-X-Name-Last: Barron
Title: Turnover in top management and de-escalation of commitment
Abstract: 
 We explore how de-escalation of commitment is linked to top management turnover and economic changes at the firm. Escalation of commitment occurs when managers continue investment in a project after receiving negative information. A major determinant of escalation is the personal responsibility effect in that managers are more likely to escalate commitment to a failing project if they were responsible for the original investments. Prior studies suggest that a change in top management facilitates de-escalation of commitment as incoming managers who do not have such commitment are able to stop investments that are discovered to be failing. Our empirical analysis based on a sample of over 3,300 firms for the period from 1992 to 2016 demonstrates the link between specific top management turnover types and economic changes at the firm consistent with the de-escalation of commitment.
Journal: Applied Economics
Pages: 2534-2551
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1546955
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1546955
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2534-2551




Template-Type: ReDIF-Article 1.0
Author-Name: Radosław Kurach
Author-X-Name-First: Radosław
Author-X-Name-Last: Kurach
Author-Name: Paweł Kuśmierczyk
Author-X-Name-First: Paweł
Author-X-Name-Last: Kuśmierczyk
Author-Name: Daniel Papla
Author-X-Name-First: Daniel
Author-X-Name-Last: Papla
Title: The optimal portfolio for the two-pillar mandatory pension system: the case of Poland
Abstract: 
 In the recent decade, there has been observed across the Central and Eastern European states the regulatory trend towards the increase of the non-financial (first) pension pillar size at the expense of the financial (second) pillar. It tends to question the consequences of this shift for the future retirement benefits. Applying the portfolio approach we address this issue by running a series of simulations to find out how to allocate pension contributions between both pillars in an optimal way. Our study contributes to the existing literature as follows. First, we do not perform the assessment of the predetermined regulatory solutions, but we look for an optimal one. Moreover, we allow our optimal rule to be time-varying, if necessary, which would be a true novelty in this research area. Second, we do not base our estimates on historical trends; rather, we apply the long-term economy’s projection to account for the society’s ageing impact, which is a crucially important factor for the solvency of the pension system. Adapting some of the simulation assumptions to fit the Polish case, our results confirm that current regulations underestimate the role of the capital pillar and the optimal allocation between both pillars should be time-varying.
Journal: Applied Economics
Pages: 2552-2565
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1556773
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1556773
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2552-2565




Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Díaz Dapena
Author-X-Name-First: Alberto
Author-X-Name-Last: Díaz Dapena
Author-Name: Fernando Rubiera Morollón
Author-X-Name-First: Fernando
Author-X-Name-Last: Rubiera Morollón
Author-Name: Mônica de Moura Pires
Author-X-Name-First: Mônica de Moura
Author-X-Name-Last: Pires
Author-Name: Andréa da Silva Gomes
Author-X-Name-First: Andréa da Silva
Author-X-Name-Last: Gomes
Title: Convergence in Brazil: new evidence using a multilevel approach
Abstract: 
 Empirical analysis of regional convergence does not focus its attention on the spatial level of the data. Most of the time, the analysis is made at the aggregated level, by large regions or states, where there are more data available. However, when there is a wide intra-regional heterogeneity, it is possible to have regional convergence coexisting with local processes of divergence. This is our hypothesis for the case of Brazil, where there are relevant different intra-state behaviours. To capture these behaviours in this article, an adaptation of multilevel techniques to the $${\rm{\beta }}$$β
-Convergence analysis is proposed using data of Brazilian states and municipalities taken from the Economic Census (1991 to 2010). With this data, we confirm the existence of convergence at the national level, but we can observe that this general trend coexists with different intra-state behaviours across Brazilian geography. The most industrialized or urbanized states of the Southeast usually present internal divergence, while the less developed inland states normally show convergence, which agrees with what we expect from the central/periphery models.
Journal: Applied Economics
Pages: 5050-5062
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299101
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299101
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5050-5062




Template-Type: ReDIF-Article 1.0
Author-Name: Elie Bouri
Author-X-Name-First: Elie
Author-X-Name-Last: Bouri
Author-Name: Naji Jalkh
Author-X-Name-First: Naji
Author-X-Name-Last: Jalkh
Author-Name: Peter Molnár
Author-X-Name-First: Peter
Author-X-Name-Last: Molnár
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Title: Bitcoin for energy commodities before and after the December 2013 crash: diversifier, hedge or safe haven?
Abstract: 
 We study the relationship between Bitcoin and commodities by assessing the ability of Bitcoin to act as a diversifier, hedge, or safe haven against daily movements in commodities in general, and energy commodities in particular. We focus on energy commodities because energy, in the form of electricity, is an essential input in the Bitcoin production. For the entire period, results show that Bitcoin is a strong hedge and a safe-haven against movements in both commodity indices. We further examine whether that ability is also present for non-energy commodities and our analysis show insignificant results when energy commodities are excluded from the general commodity index. We also account for the December 2013 Bitcoin price crash and our results reveal that Bitcoin hedge and safe-haven properties against commodities and energy commodities are only present in the pre-crash period, whereas in the post-crash period Bitcoin is no more than a diversifier. In addition to uncovering the time-varying role of Bitcoin, we highlight the dissimilarity in the dynamic correlations between the extreme downward and extreme upward movements.
Journal: Applied Economics
Pages: 5063-5073
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299102
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299102
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5063-5073




Template-Type: ReDIF-Article 1.0
Author-Name: César Alonso-Borrego
Author-X-Name-First: César
Author-X-Name-Last: Alonso-Borrego
Author-Name: Raquel Carrasco
Author-X-Name-First: Raquel
Author-X-Name-Last: Carrasco
Title: Employment and the risk of domestic violence: does the breadwinner’s gender matter?
Abstract: 
 This article studies the effect on the risk of female victimization of the employment status of the woman and her partner. We use individual-level data from the violence against women surveys for Spain, which also provide information on income and a rich set of sociodemographic characteristics. To address the potential endogeneity of the binary employment indicators, we exploit exogenous geographical information on the employment and unemployment rates by gender and age, within a multivariate probit framework. Our estimation results show that male partner employment plays a major role in the risk of physical violence, while female employment only lowers it when her partner is employed too. The lowest risk appears for more egalitarian couples in which both partners are employed.
Journal: Applied Economics
Pages: 5074-5091
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299103
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299103
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5074-5091




Template-Type: ReDIF-Article 1.0
Author-Name: I-Cheng Yeh
Author-X-Name-First: I-Cheng
Author-X-Name-Last: Yeh
Author-Name: Che-hui Lien
Author-X-Name-First: Che-hui
Author-X-Name-Last: Lien
Title: Growth and value hybrid valuation model based on mean reversion
Abstract: 
 This article proposes a novel valuation model, growth and value hybrid model, to estimate the stock price. This proposed model combines the essence of the asset-based approach, the income-based approach, and the principle of mean reversion to develop the theoretical closed-form formula consisting of three coefficients: value coefficient, value support coefficient and growth coefficient. Regression analysis is employed to fit market data to determine these coefficients. Moreover, this study proposes the double sorting method to build the quantile regression models of the formula to estimate the stock price at a specific quantile. The results show that the predictive capability of the hybrid valuation model is superior to the model without using value support coefficient, which supports the assumption that the PBR is not associated with the ROE when the ROE is less than a threshold. In different time periods of the stock market, no significant difference exists on the value support coefficient. However, the variations of the value coefficient and the growth coefficient are significant.
Journal: Applied Economics
Pages: 5092-5116
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299104
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299104
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5092-5116




Template-Type: ReDIF-Article 1.0
Author-Name: Deborah Gefang
Author-X-Name-First: Deborah
Author-X-Name-Last: Gefang
Author-Name: Geraint Johnes
Author-X-Name-First: Geraint
Author-X-Name-Last: Johnes
Title: Asymmetric volatility spillovers between the U.K. regional worker flows and vacancies
Abstract: 
 This article investigates volatility spillovers between the U.K. regional job finding, job separation and vacancy rates. Employing a large Bayesian logistic smooth transition vector autoregression model, we find high volatility spillovers between the U.K. regional labour markets. Analyses of net spillovers show that, in general, shocks to job separation rates tend to spread into job finding and vacancy rates, while vacancy rates are usually at the receiving end of shocks transmitted from the job separations and job findings. To shed further light on the shock propagation mechanism, we also look into more detailed matters such as the differences in spillovers between regions within the same regime, and that of the same region but in different regimes.
Journal: Applied Economics
Pages: 5117-5133
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299105
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299105
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5117-5133




Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Miyakoshi
Author-Name: Kenichi Suzuki
Author-X-Name-First: Kenichi
Author-X-Name-Last: Suzuki
Title: Why do only the G7+2 countries among United Nations members discuss about international public goods? A simulation study
Abstract: 
 This article investigates why only the Group of 7 plus China and Russia (G7 + 2 countries) among 194 United Nations members discuss about international public goods? By simulating the heterogeneity of income, prices and preference parameters on the total provisions and the number of free riders, we find that the number of contributors for international public goods is 15 under the 194 member countries, while the others are free riders. In addition, the contributors are the top 15 powerful countries with largest dropout value over the world. Then, the discussion with only 15 countries for public goods is meaningful. As large as the heterogeneity of parameters is, the number of contributors becomes closer to G7 + 2.
Journal: Applied Economics
Pages: 5134-5143
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299106
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299106
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5134-5143




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Eriksson
Author-X-Name-First: Stefan
Author-X-Name-Last: Eriksson
Author-Name: Karolina Stadin
Author-X-Name-First: Karolina
Author-X-Name-Last: Stadin
Title: What are the determinants of hiring? The importance of product market demand and search frictions
Abstract: 
 In this article, we study the importance of product market demand and search frictions for hiring. We use a search-matching model with imperfect competition in the product market to derive an equation for total hiring in a local labour market, and estimate it on Swedish panel data. If product markets are imperfectly competitive, product demand shocks should have a direct effect on employment for given levels of prices and wages. Our main finding is that product demand has such a direct effect on hiring. This highlights the importance of taking imperfect competition in the product market into account in studies of employment dynamics and hiring. We also find that, for given levels of prices, wages, and product demand, the number of unemployed workers in a local labour market has a positive effect on hiring, suggesting that search frictions matter. Quantitatively, product demand shocks seem to be more important for understanding the variation in hiring than shocks to the number of unemployed workers.
Journal: Applied Economics
Pages: 5144-5165
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1302058
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302058
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5144-5165




Template-Type: ReDIF-Article 1.0
Author-Name: Bhavesh Garg
Author-X-Name-First: Bhavesh
Author-X-Name-Last: Garg
Author-Name: K.P. Prabheesh
Author-X-Name-First: K.P.
Author-X-Name-Last: Prabheesh
Title: External shocks, consumption-smoothing and capital mobility in India: evidence from an intertemporal optimization approach
Abstract: 
 We examine the solvency of India’s current account (CA) in the post-liberalization period using intertemporal optimization approach to the CA. Using quarterly data ranging from 1996Q1 to 2014Q2, we estimate a benchmark consumption-smoothing model and an extended model that incorporates external shocks. Overall, we find that the predicted optimal CA in both the models can track the actual CA movements and the extended model performs better over the benchmark model. Further, we also find that the optimal CA is more volatile than the actual CA which implies that the capital flows have been less than optimal and thus makes an interesting case for further liberalization of the capital account. Our findings suggest that policies aimed at further liberalization of capital flows will allow larger CA deficits to achieve higher economic growth since it will help agents to further smoothen their consumption without worrying about risks associated with insolvency.
Journal: Applied Economics
Pages: 4814-4829
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1467554
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467554
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4814-4829




Template-Type: ReDIF-Article 1.0
Author-Name: Shiyu Bo
Author-X-Name-First: Shiyu
Author-X-Name-Last: Bo
Title: Son preference, children’s gender and parents’ time allocation: evidence from China
Abstract: 
 This article investigates the effect of children’s gender on parents’ time allocation in developing countries due to the long-existing tradition of son preference. A collective model generates predictions concerning the impact of the birth of sons on family behaviour when son preference is treated as a premium in the father’s utility function. Using data from China, I show that, with more sons instead of daughters, the time spent by both men and women on housework rises, while men have to increase their work time in the labour market and women can reduce theirs. The results are consistent with theoretical predictions and are robust for use in further tests. For the possible endogeneity of children’s gender, I use the law forbidding the use of ultrasound-B to reveal the gender of a foetus as instrumental variables as the identification strategy.
Journal: Applied Economics
Pages: 4830-4846
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1467555
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467555
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4830-4846




Template-Type: ReDIF-Article 1.0
Author-Name: C. Jeffrey Waddoups
Author-X-Name-First: C. Jeffrey
Author-X-Name-Last: Waddoups
Title: Has the large firm training advantage declined during the 2000s?
Abstract: 
 The study examines data from the Survey of Income and Program Participation (SIPP) and finds a falling incidence of job training in the United States during the period between 2001 and 2009. It also reveals that the firm size-training advantage in which larger firms are more likely to provide employer-paid training than their smaller counterparts has diminished. For the workforce overall, 34.5 percent (for males) to 25.4 percent (for females) of the difference in training between 2001 and 2009 is attributable to a decline in the large firm training advantage. For younger prime-age workers, the falling firm size-training effect is an even larger part of the overall decline in training, amounting to 51.8 percent of the difference in training between 2001 and 2009 for males and 33.9 percent for females.
Journal: Applied Economics
Pages: 4847-4865
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468552
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468552
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4847-4865




Template-Type: ReDIF-Article 1.0
Author-Name: Junchao Zhang
Author-X-Name-First: Junchao
Author-X-Name-Last: Zhang
Title: The impact of 9-year compulsory education: quasi-experimental evidence from Taiwan
Abstract: 
 Using a regression discontinuity design, this article investigates the causal impacts of 9 year compulsory education on students’ educational attainment and dropout rate by Taiwan Population and Housing Census. The results show that the policy reduces approximately 4 percentage points of the dropout likelihood by age 15 and 2 percentage points of the dropout likelihood by age 18, also increases years of schooling by 0.22. Furthermore, heterogeneous effects are observed across gender and ethnic groups. The policy has larger effects on males and local Taiwanese people than on females and Mainlanders.
Journal: Applied Economics
Pages: 4866-4878
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468553
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468553
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4866-4878




Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Chan
Author-X-Name-First: Jeff
Author-X-Name-Last: Chan
Title: Market access and occupational upgrading: evidence from the 19th century American transportation network
Abstract: 
 This article investigates the extent to which county-level market access affects workers’ occupational upgrading and industrial sorting by exploiting the substantial spatial variation and rapid expansion of the United States’ transportation network coverage from 1870 to 1880. First, I find that individuals who enjoyed greater market access in 1880 were more likely to work in higher-paying occupations. Importantly, this result holds across all sectors of employment, for younger and older workers, and for migrants and non-migrants, suggesting that any market size effects on occupational upgrading were not specific to any one group. I also provide results showing that workers were more likely to switch industries within agriculture, but are less likely to do so from manufacturing or services. Finally, I find some evidence of changes to sectoral reallocation, principally away from agriculture, being associated with higher market access. My findings suggest that the expansion of the transportation network in played an important role in determining the type of work Americans performed in the nineteenth century.
Journal: Applied Economics
Pages: 4879-4900
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468554
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468554
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4879-4900




Template-Type: ReDIF-Article 1.0
Author-Name: Yao Li
Author-X-Name-First: Yao
Author-X-Name-Last: Li
Author-Name: Jianqing Ruan
Author-X-Name-First: Jianqing
Author-X-Name-Last: Ruan
Author-Name: Chunhui Ye
Author-X-Name-First: Chunhui
Author-X-Name-Last: Ye
Title: How natural disasters affect the evolution of grain markets: evidence from 18th-century China
Abstract: 
 Market is the foundation of modern society. However, how did market evolve? Previous research has explored the impacts of spatial distance and transportation conditions on market integration. This article argues that natural disasters also played a crucial role in the evolution of market integration in China, particularly in the grain market. When natural disasters occur, governments’ relief measures and merchants’ arbitrage activities will gradually promote interconnectivity among local grain markets. In this article, China’s major grain monthly price data set from 1746 to 1795 and the Chinese historical disaster records dataset from 1696 to 1795 are used to analyse the impact of natural disasters on grain market integration. The empirical results show that natural disasters have a significantly positive effect on the integration of the grain market. The findings continue to hold after controlling the traffic conditions, grain varieties and lag effect. This study proposes a new perspective for understanding the evolution of the grain market.
Journal: Applied Economics
Pages: 4901-4911
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468555
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468555
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4901-4911




Template-Type: ReDIF-Article 1.0
Author-Name: R. Inglesi-Lotz
Author-X-Name-First: R.
Author-X-Name-Last: Inglesi-Lotz
Author-Name: A. Hakimi
Author-X-Name-First: A.
Author-X-Name-Last: Hakimi
Author-Name: A. Pouris
Author-X-Name-First: A.
Author-X-Name-Last: Pouris
Title: Patents vs publications and R&amp;D: three sides of the same coin? Panel Smooth Transition Regression (PSTR) for OECD and BRICS countries
Abstract: 
 The paper aims to define the optimal thresholds of publications and Research and Development (R&amp;D) expenditure and to investigate their impacts on patenting in OECD and BRICS countries. To do so, we use a dataset of 25 countries divided into two country sub-samples for the period 1996–2013, employing the Panel Smooth Transition Regression (PSTR) model. The results indicate that the threshold of publications after which patenting activity is promoted is 8417 publications for the OECD countries and 20,848 for the BRICS countries, while the share of R&amp;D in % of GDP should not exceed 1.683% for the OECD countries and 0.975% for the BRICS countries.
Journal: Applied Economics
Pages: 4912-4923
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468556
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468556
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4912-4923




Template-Type: ReDIF-Article 1.0
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Matthijs Den Besten
Author-X-Name-First: Matthijs
Author-X-Name-Last: Den Besten
Title: The influence of entrepreneur’s personal characteristics on MSEs growth through innovation
Abstract: 
 Research in the separate areas of innovation and growth has considerably intensified in recent years. However, little scholarly attention has been paid to the entrepreneurs’ personal characteristics that might explain the growth of micro and small enterprises (MSEs) through innovation. This study examines the key entrepreneurs’ personal characteristics affecting micro and small enterprises (MSEs) upgrading, defined here as substantial growth through innovation. Six major determining types of entrepreneurs’ characteristics were identified from the innovation and the growth literature: education, work experience, gender, motivations, nationality and age. The empirical results which are based on t-tests of the differences between upgraders and non-upgraders, the linear probability model and the logit model, all suggest that work experience and motivations are cornerstones in the likelihood that an MSE will upgrade. The policy implications of this study on promoting MSEs upgrading are also discussed.
Journal: Applied Economics
Pages: 4183-4200
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153792
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153792
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4183-4200




Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Author-Name: John J. Vaz
Author-X-Name-First: John J.
Author-X-Name-Last: Vaz
Title: Cointegration as an explanation for the Meese–Rogoff puzzle
Abstract: 
 Some economists suggest that the failure of exchange-rate models to outperform the random walk in exchange rate forecasting out of sample can be attributed to failure to take into account cointegration when it is present. We attempt to find out if cointegration matters for forecasting accuracy by examining the relation between the stationarity and size of the forecasting error. Results based on three macroeconomic models of exchange rates do not provide strong support for the proposition that cointegration matters for forecasting accuracy. The simulation results show that while stationary errors tend to be smaller than non-stationary errors, this is not a universal rule. Irrespective of the presence or absence of cointegration, none of the three models can outperform the random walk in out-of-sample forecasting, which means that cointegration cannot solve the Meese–Rogoff puzzle.
Journal: Applied Economics
Pages: 4201-4209
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153793
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153793
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4201-4209




Template-Type: ReDIF-Article 1.0
Author-Name: Sudharshan Reddy Paramati
Author-X-Name-First: Sudharshan Reddy
Author-X-Name-Last: Paramati
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Author-Name: Rakesh Gupta
Author-X-Name-First: Rakesh
Author-X-Name-Last: Gupta
Title: Economic integration and stock market dynamic linkages: evidence in the context of Australia and Asia
Abstract: 
 Countries are becoming economically integrated and it is contended that this will also lead to their financial markets becoming integrated. This contention is important since international financial market integration diminishes portfolio diversification benefits and creates contagion risk. We test this contention in this article in the context of the Australasian region. Australia and Asia have experienced very significant economic integration through a rapid growth in their bilateral trade. We utilize a battery of econometric techniques – cointegration, asymmetric generalized dynamic conditional correlations and panel regression models. As expected, we find that trade intensity significantly drives the interdependence between their stock markets in both the short run and the long run. Thus, given the ever increasing economic integration in this region, this finding implies that their stock markets face the risk of contagion, and that investors in these markets would also be confronted with the prospect of lower diversification benefits.
Journal: Applied Economics
Pages: 4210-4226
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153794
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153794
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4210-4226




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Lampach
Author-X-Name-First: Nicolas
Author-X-Name-Last: Lampach
Author-Name: Ulrich B. Morawetz
Author-X-Name-First: Ulrich B.
Author-X-Name-Last: Morawetz
Title: Credibility of propensity score matching estimates. An example from Fair Trade certification of coffee producers
Abstract: 
 Propensity score matching (PSM) is an increasingly popular method for evaluation studies in agricultural and development economics. However, statisticians and econometricians have stressed that results rely on untestable assumptions, and therefore, guidelines for researchers on how to improve credibility have been developed. We follow one of these guidelines with a data set analysed by other authors to evaluate the impact of Fair Trade certification on the income of coffee producers. We provide thereby a best practice example of how to evaluate the credibility of PSM estimates. We find that a thorough assessment of the assumptions made renders the data we use not suitable for a credible PSM estimation of the effects of treatment. We conclude that the debate about the impact of Fair Trade certification would greatly benefit from a detailed reporting of credibility checking.
Journal: Applied Economics
Pages: 4227-4237
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153795
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153795
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4227-4237




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Feuerriegel
Author-X-Name-First: Stefan
Author-X-Name-Last: Feuerriegel
Author-Name: Georg Wolff
Author-X-Name-First: Georg
Author-X-Name-Last: Wolff
Author-Name: Dirk Neumann
Author-X-Name-First: Dirk
Author-X-Name-Last: Neumann
Title: News sentiment and overshooting of exchange rates
Abstract: 
 In a globalized world, the volume of international trade is based on both import and export prices, thereby making a country’s economy highly dependent on exchange rates. In order to study exchange rate movements, one frequently exploits the so-called Dornbusch overshooting model. However, the model is controversial from a theoretical point of view: it explains exchange rate movements by a number of fundamental variables but ignores how novel information in the form of news can enter the market. As a remedy, this article adjusts for information dissemination by performing a multivariate analysis to compare the classical overshooting model with an extended variant that includes news sentiment. Our results show that news sentiment has a substantial explanatory power of 11% of the exchange rate forecasting error variance. In addition, we also find statistical evidence that a shock in news sentiment may lead to overshooting.
Journal: Applied Economics
Pages: 4238-4250
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153796
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153796
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4238-4250




Template-Type: ReDIF-Article 1.0
Author-Name: Tomoyuki Yagi
Author-X-Name-First: Tomoyuki
Author-X-Name-Last: Yagi
Author-Name: Masako Takahashi
Author-X-Name-First: Masako
Author-X-Name-Last: Takahashi
Title: Business cycle turning points based on DEA-discriminant analysis
Abstract: 
 Recently, the turning points of business cycle are decided with wide viewpoints after passing a couple of years from the points. This study tries to develop a model for judging the turning points in real-time by using a non-parametric approach, DEA-discriminant analysis, because we have sometimes faced sudden changes of economy and non-parametric approaches are useful for covering these movements. The constructed model succeeds to separate periods in Japanese economic expanding and recession terms, and the model would be helpful for the real-time judgments of the turning points of business cycle.
Journal: Applied Economics
Pages: 4251-4256
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156227
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156227
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4251-4256




Template-Type: ReDIF-Article 1.0
Author-Name: Makiko Omura
Author-X-Name-First: Makiko
Author-X-Name-Last: Omura
Title: An analysis of wine and food consumption dynamics in Japan using a vector error correction model
Abstract: 
 This article provides an analysis of long-term equilibrium relationships between wine and food-related consumptions in Japan through the vector error correction model. Utilizing longitudinal data from 1970 to 2009, the analysis suggests that wine consumptions and food-related consumptions are co-integrated. The investigation of orthogonal impulse response functions suggests that food-related items, such as bread, vegetables and eating out are positive factors for wine consumptions. With the expansion of wine consumption and diversification of food consumption patterns, wine is deemed to have gained its place in Japanese ordinary life, regardless of the general state of economy. The estimated results also provide a supporting evidence for previous cross-sectional study findings by others that wine consumers tend to have healthier diet. Despite the downward forecasts for economic performance and some food items, wine consumption is predicted to grow continuously.
Journal: Applied Economics
Pages: 4257-4269
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156230
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156230
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4257-4269




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Polly Palmer
Author-X-Name-First: Polly
Author-X-Name-Last: Palmer
Title: On the dynamics of U.S. consumer sentiment and economic policy assessment
Abstract: 
 We utilize the Michigan Surveys of Consumers data to first investigate the dynamic relationship between consumers’ assessment of current and future economic conditions (Index of Current Economic Conditions (ICC) and Index of Consumer Expectations (ICE)), and then examine how these assessments are influenced by deterioration/improvement in consumers’ appraisal of economic policies of the government (GP). We further assess how deterioration/improvement in ICC and ICE influences GP. For 1978–2015, our findings first indicate that ICC and ICE are cointegrated and both respond to disequilibrium to restore the long-run equilibrium relationship. Second, deterioration in GP results in deterioration in both ICC and ICE. Improvement in GP, however, results in improvement in ICE with no impact on ICC. Third, deterioration in both ICC and ICE results in deterioration in GP. Improvement in ICE results in improvement in GP, but improvement in ICC has no impact on GP. The observed asymmetries are in line with ‘negativity bias’, whereby people tend to give more weight to negative events than to positive ones.
Journal: Applied Economics
Pages: 227-237
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194964
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194964
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:227-237




Template-Type: ReDIF-Article 1.0
Author-Name: Marco A. Palma
Author-X-Name-First: Marco A.
Author-X-Name-Last: Palma
Author-Name: Meghan L. Ness
Author-X-Name-First: Meghan L.
Author-X-Name-Last: Ness
Author-Name: David P. Anderson
Author-X-Name-First: David P.
Author-X-Name-Last: Anderson
Title: Fashionable food: a latent class analysis of social status in food purchases
Abstract: 
 A framed field experiment combined with a latent class econometric approach was used to investigate how prestige-seeking behaviour influences food choices. We propose a theoretical framework to test conspicuous consumption of specialty food products. We test the hypothesis empirically by categorizing individuals into unobserved latent classes according to their general prestige-seeking behaviour. We find evidence of food consumption driven by prestige to the point of becoming a symbol of social status. The prestige-seeking behaviour seems to be motivated by invidious comparison or higher-class individuals seeking to differentiate themselves from lower-class individuals; and pecuniary emulation, or lower-class individuals buying prestigious goods in order to be perceived as members of a higher class. Findings from this study revealed that the effects of differentiating labelling attributes had a higher impact for individuals classified into classes with prestige-seeking behaviour to attain an elevated social status.
Journal: Applied Economics
Pages: 238-250
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194965
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194965
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:238-250




Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Haotian Liang
Author-X-Name-First: Haotian
Author-X-Name-Last: Liang
Title: Firm location, political geography and environmental information disclosure
Abstract: 
 As the subjective and objective factors that influence corporate behaviours, political region and firm location are of great importance to environmental information disclosure (EID). With spatial and political geography as a research perspective, this article makes a study by using the samples of manufacturing listed companies from 2009 to 2011. As a result, we determine that regulatory distance and political geography had negative effects on EID, while political geography weakens regulatory distance’s function. After considering an enterprise’s administrative rank, we determined that when the rank is higher, regulatory distance has negative effects on EID; when the rank is lower, the effects are the opposite. Regarding political geography, it always weakened the regulatory distance’s function. Moreover, the effects are significant only when the enterprises had low governmental regulation. The study shows the effects that firm location and political geography have made on EID. At the same time, this study also gives theoretical and empirical evidence to the necessity of raising governmental regulatory effectiveness.
Journal: Applied Economics
Pages: 251-262
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194966
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194966
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:251-262




Template-Type: ReDIF-Article 1.0
Author-Name: Scott Tainsky
Author-X-Name-First: Scott
Author-X-Name-Last: Tainsky
Author-Name: Jie Xu
Author-X-Name-First: Jie
Author-X-Name-Last: Xu
Author-Name: Qian Yang
Author-X-Name-First: Qian
Author-X-Name-Last: Yang
Title: Competitive balance and the participation–spectatorship gap in Chinese table tennis
Abstract: 
 Excessive competitive imbalance holds the potential to render teams and, by extension, leagues inviable. The China Table Tennis Super League has languished in its attempt to catch on as a popular spectator sport in spite of the sport’s popularity as recreational activity. One of the primary reasons for the participation–spectatorship gap cited by officials is competitive imbalance. This research estimates a number of within-season balance measures, including the standard deviation of winning, concentration ratio, and Herfindahl–Hirschman Index. The results show that both the men’s and women’s leagues have been relatively balanced over time. Implications regarding competitive balance and other league policy considerations are explored.
Journal: Applied Economics
Pages: 263-272
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197363
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197363
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:263-272




Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Carmignani
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Carmignani
Author-Name: Parvinder Kler
Author-X-Name-First: Parvinder
Author-X-Name-Last: Kler
Title: The spillover of war in time and space: exploring some open issues
Abstract: 
 In spite of a voluminous empirical literature, the diffusion of civil war in time and space is still not fully understood and several issues remain open for debate. This article sheds new light on some of these issues. First, we assess the robustness of results to changes in the definition of neighbourhood (spatial dimension) and in the lag structure (temporal dimension). Second, we investigate the factors that determine the strength of civil war diffusion, focusing in particular on (i) the type of war (e.g. its intensity and scope), (ii) the quality of domestic polity, and (iii) interaction opportunities (e.g. ethnic ties and refugee flows). Third, we look at how the occurrence of war in a neighbouring country affects the duration (and not just the onset) of domestic civil war.
Journal: Applied Economics
Pages: 273-288
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197364
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197364
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:273-288




Template-Type: ReDIF-Article 1.0
Author-Name: M. Iqbal Ahmed
Author-X-Name-First: M. Iqbal
Author-X-Name-Last: Ahmed
Author-Name: Steven P. Cassou
Author-X-Name-First: Steven P.
Author-X-Name-Last: Cassou
Title: Threshold cointegration between inflation and US capacity utilization
Abstract: 
 An analogue to the Phillips curve shows a positive relationship between inflation and capacity utilization. Some recent empirical work has shown that this relationship has broken down when using data after the mid-1980s. We empirically investigate this issue using several threshold error correction models. We find, in the long run, a 1% increase in the rate of inflation leads to approximately a 0.0046% increase in capacity utilization. The asymmetric error correction structure shows that changes in capacity utilization show significant corrective measures only during booms while changes in inflation correct during both phases of the business cycle with the corrections being stronger during recessions. We also find that, in the short run, changes in the inflation rate do Granger cause capacity utilization while changes in capacity utilization do not Granger cause inflation. The Granger causality from inflation to capacity utilization can be interpreted as supporting recent calls made in the popular press by some economists that it may be desirable for the Federal Reserve Bank to try to induce some inflation. However, it is also possible to interpret these Granger causality results as arising because both variables respond to some more fundamental set of variables with the inflation rate simply responding sooner. The lack of Granger causality from capacity utilization to inflation casts doubt on the older view that capacity utilization could be a leading indicator for future inflation.
Journal: Applied Economics
Pages: 289-302
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197365
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197365
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:289-302




Template-Type: ReDIF-Article 1.0
Author-Name: Dennis L. Weisman
Author-X-Name-First: Dennis L.
Author-X-Name-Last: Weisman
Author-Name: Dong Li
Author-X-Name-First: Dong
Author-X-Name-Last: Li
Title: Weeds in the Ivy: college admissions under preference constraints
Abstract: 
 In a series of cases spanning more than three decades, the courts have attempted to establish boundaries on the permissible use of racial preferences in college admissions. Proponents of these policies believe that race-based preferences are needed to create a diverse student body that facilitates effective learning and social inclusion. Opponents of such policies contend that racial preferences are inherently discriminatory and eliminating them would yield a more able student body. Whereas race-based preferences have garnered the most attention, elite colleges regularly employ other types of preferences, including those for alumni and talented athletes. To inform this important policy debate, we develop a simple model comprised of a rational college administrator that maximizes a linear combination of student body ability and the college endowment through the choice of race, legacy and merit admission shares. We find that relaxing the racial-preferences constraint can produce a ‘less-able’ student body even when the college administrator places greater weight on student body ability than she does on the college endowment. The change in admissions policy may serve only to increase the number of admissions that can be ‘sold’ to wealthy alumni through legacy preferences and thereby foster the growth of weeds in the Ivy.
Journal: Applied Economics
Pages: 303-312
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197366
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197366
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:303-312




Template-Type: ReDIF-Article 1.0
Author-Name: Bedassa Tadesse
Author-X-Name-First: Bedassa
Author-X-Name-Last: Tadesse
Author-Name: Elias Shukralla
Author-X-Name-First: Elias
Author-X-Name-Last: Shukralla
Author-Name: Bichaka Fayissa
Author-X-Name-First: Bichaka
Author-X-Name-Last: Fayissa
Title: Institutional quality and the effectiveness of aid for trade
Abstract: 
 Trade policy barriers and high transaction costs hinder developing countries from taking the full advantages of the global trading system. In order to help developing countries overcome the problem, the World Trade Organization (WTO) launched the Aid for Trade (AFT) initiatives in its Ministerial Conference held in Hong Kong in 2005. We examine the effects of AFT inflows on bilateral trade costs facing 133 developing countries while accounting for differences in their location on the contours of various measures of institutional quality. Our results from the estimation of a mixed effects (random-intercept and random-coefficient) model indicate that institutional quality significantly affects the extent to which AFT reduces bilateral trade costs. An important policy implication of our findings is that an economically robust and sustainable reduction in bilateral trade costs facing developing countries requires the presence of both promulgated and effectively functioning institutions such as regulatory power and the rule of law.
Journal: Applied Economics
Pages: 4233-4254
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1589644
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1589644
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4233-4254




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: John Inekwe
Author-X-Name-First: John
Author-X-Name-Last: Inekwe
Title: Prediction of financial distress for multinational corporations: Panel estimations across countries
Abstract: 
 This research predicts ex-ante financial distress and analyses the link between financial distress, performance, employment, `and research and development (R&D) investment in the case of multinational companies (MNCs). The conditional logit and hazard models are employed to predict financial distress, while a conditional mixed process model is employed to obtain consistent and efficient estimates. Financial distress generates contractions in performance, employment, and R&D investment. Hedging against risk mitigates the effect of financial distress on R&D. Our findings vary across countries, for example, we find MNCs in Canada, Israel and the U.S. benefit from hedging against risk. The findings also indicate that ex-ante financial distress is detrimental to employment for Canada, the U.K., the Netherlands and the U.S. The findings indicate the MNCs play different roles across countries in contributing jobs, investment in R&D during the distress period.
Journal: Applied Economics
Pages: 4255-4269
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1589646
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1589646
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4255-4269




Template-Type: ReDIF-Article 1.0
Author-Name: Bongseok Choi
Author-X-Name-First: Bongseok
Author-X-Name-Last: Choi
Author-Name: Donghun Kim
Author-X-Name-First: Donghun
Author-X-Name-Last: Kim
Author-Name: Hong Chong Cho
Author-X-Name-First: Hong Chong
Author-X-Name-Last: Cho
Title: Price response, information, and asymmetry of price dispersion
Abstract: 
 In this study, we examine how differently gasoline prices in 25 regions of Seoul, Korea respond to asymmetric information between retailers and consumers. We estimate the region-specific likelihood that retailers engage in price undercutting under asymmetric information and investigate inter-regional differences. We find that in response to increases in wholesale price, regions with a high likelihood of price undercutting experience intensified gas station price competition while dispersions of price and markups tend to decrease more in response to cost shocks. Understanding the geographical dispersion of retailers’ price responses to information frictions and search intensity is crucial to lowering information barriers across regions and redistributing profit among market participants.
Journal: Applied Economics
Pages: 4270-4281
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591600
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591600
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4270-4281




Template-Type: ReDIF-Article 1.0
Author-Name: Jiro Hodoshima
Author-X-Name-First: Jiro
Author-X-Name-Last: Hodoshima
Author-Name: Nana Otsuki
Author-X-Name-First: Nana
Author-X-Name-Last: Otsuki
Title: Evaluation by the Aumann and Serrano performance index and Sharpe ratio: Bitcoin performance
Abstract: 
 We compare Bitcoin performance based on the Aumann and Serrano performance index and Sharpe ratio assuming that asset returns follow the class of discrete normal mixture distributions. The Aumann and Serrano performance index can take into account higher moments of the underlying distribution of assets and is relevant for risk-averse investors. We evaluate Bitcoin performance based on the Aumann and Serrano index relative to the performance of other assets. Our evaluation shows that Bitcoin is rated highly by the Sharpe ratio but rated very poorly by the Aumann and Serrano index. We also find some stock assets can beat Bitcoin by the Sharpe ratio when an investment horizon is monthly.
Journal: Applied Economics
Pages: 4282-4298
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591601
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591601
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4282-4298




Template-Type: ReDIF-Article 1.0
Author-Name: Yongkil Ahn
Author-X-Name-First: Yongkil
Author-X-Name-Last: Ahn
Title: Distress cost and corporate financing policy: evidence from the equity options market
Abstract: 
 This study examines the link between distress cost and corporate financing policy through the lens of the equity options market. Four features stand out. First, the cost of distress is comparable to the tax shield from debt financing. Second, the results provide evidence that ordinary least-squares estimates understate the impact of market leverage on default risk. Third, consistent with the information models of debt maturity, firms with higher default probability use more long-term debt. Finally, more distressed firms rely on secured debt to a greater extent. Overall, the results support the trade-off theory of capital structure.
Journal: Applied Economics
Pages: 4299-4312
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591602
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591602
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4299-4312




Template-Type: ReDIF-Article 1.0
Author-Name: Rudra P. Pradhan
Author-X-Name-First: Rudra P.
Author-X-Name-Last: Pradhan
Author-Name: Mak B. Arvin
Author-X-Name-First: Mak B.
Author-X-Name-Last: Arvin
Author-Name: Mahendhiran Nair
Author-X-Name-First: Mahendhiran
Author-X-Name-Last: Nair
Author-Name: Sara E. Bennett
Author-X-Name-First: Sara E.
Author-X-Name-Last: Bennett
Title: Inter-linkages between competition and stabilisation policies in the banking sector and stock market development in Europe
Abstract: 
 The banking sector and the stock market in Europe have been adversely impacted by a series of global financial crises over the last two decades. Major financial reforms were implemented to enhance the stability and competition within the banking sector. Measures were also implemented to create a vibrant stock market in Europe to stimulate economic growth in Europe. This study examines the interactions between stock market development, banking competition, and banking stability in European countries from 1996 to 2016. The purpose of the study is to understand the inter-linkages between these variables to ascertain the spillover impact of policy reforms in the banking sector on the stock market and vice-versa. Using a vector error-correction model, the study finds long-run and short-run inter-linkages between banking competition, banking stability, and stock market development in European countries. The study’s most robust result is that banking competition and banking stability stimulate stock market development in the long run. There is also some evidence that healthy competition in the banking sector and stock market development instils greater stability in the banking sector. The results suggest that policy measures put in place to create a vibrant stock market must include elevating banking competition and banking stability, with policymakers being cognizant that causality may be bidirectional.
Journal: Applied Economics
Pages: 4313-4324
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591603
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591603
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4313-4324




Template-Type: ReDIF-Article 1.0
Author-Name: Madhu Sehrawat
Author-X-Name-First: Madhu
Author-X-Name-Last: Sehrawat
Author-Name: Sanjay Kumar Singh
Author-X-Name-First: Sanjay Kumar
Author-X-Name-Last: Singh
Title: Human capital and income inequality in India: is there a non-linear and asymmetric relationship?
Abstract: 
 The article attempts to provide empirical evidence on the relationship between human capital and income inequality in India in a non-linear and asymmetric framework. To capture both long-run and short-run asymmetries, we have employed the non-linear autoregressive distributed lag approach using the relevant data from 1970 to 2016. Findings of the article suggest that education expansion acts as a major factor in reducing prevailing high income inequality, that is an increase in average years of schooling results in more equal distribution of income. In contrast, high economic growth, inflation and trade openness create unequal distribution of income. The asymmetric causality test results indicate that there is unidirectional causality running from female human capital, economic growth and inflation to income inequality. From a policy perspective, we suggest that education expansion should be used as a powerful tool to mitigate income inequality by emphasizing the quality of education. At the same time, policies geared towards social benefits, inclusive education, training for unskilled workers and price stability should be encouraged to attain fair income distribution in India.
Journal: Applied Economics
Pages: 4325-4336
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591605
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591605
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4325-4336




Template-Type: ReDIF-Article 1.0
Author-Name: Anca M. Grecu
Author-X-Name-First: Anca M.
Author-X-Name-Last: Grecu
Author-Name: Ghanshyam Sharma
Author-X-Name-First: Ghanshyam
Author-X-Name-Last: Sharma
Title: The effect of telehealth insurance mandates on health-care utilization and outcomes
Abstract: 
 This paper uses panel data techniques to investigate the impact of state mandates to cover telehealth services on private insurance premiums and enrollment, health-care utilization, and health outcomes. There is evidence that telehealth insurance mandates are associated with an increase in primary care, but no significant changes in overall health outcomes. However, there is evidence of a reduction of secondary care and improvement in health outcomes in non-metropolitan areas. The results provide useful information regarding the potential of telehealth to reduce health-care costs as well as to reduce disparities in access to health care and in health outcomes.
Journal: Applied Economics
Pages: 5972-5985
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1644448
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644448
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:5972-5985




Template-Type: ReDIF-Article 1.0
Author-Name: Yunwei Gai
Author-X-Name-First: Yunwei
Author-X-Name-Last: Gai
Title: Does state-mandated reporting work? The case of surgical site infection in CABG patients
Abstract: 
 This paper is the first empirical study to explore the relationship between the state-mandated reporting of surgical site infections (SSIs) and changes in infection rates, length of stay and costs among coronary artery bypass grafting (CABG) patients. This paper uses generalized difference-in-difference (DID) methods to analyze patient discharge data from the Nationwide Inpatient Sample (NIS) from January 2004 to December 2011 merged with state-level data on mandatory reporting status. After controlling patient and hospital characteristics, and state and year fixed effects, we do not find empirical evidence that state-mandated reporting leads to lower odds of SSIs in CABG procedure. Although it is associated with shorter length of stay and lower costs, the effect is not significant. These results suggest that merely requiring hospitals to report outcomes may not lead to significant changes at least in the case of SSIs among CABG patients.
Journal: Applied Economics
Pages: 5986-5998
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645282
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645282
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:5986-5998




Template-Type: ReDIF-Article 1.0
Author-Name: Ivana Kravčáková Vozárová
Author-X-Name-First: Ivana
Author-X-Name-Last: Kravčáková Vozárová
Author-Name: Rastislav Kotulič
Author-X-Name-First: Rastislav
Author-X-Name-Last: Kotulič
Author-Name: Roman Vavrek
Author-X-Name-First: Roman
Author-X-Name-Last: Vavrek
Title: Disparities in the financial performance of agricultural entities according to the legal form: the case of Slovakia
Abstract: 
 Financial management in agricultural enterprises is affected by a range of factors that are not present in other sectors. One of the factors that affect the performance of enterprises is the legal or organizational form of the business. In Slovakia, the specific structure of farms is different from that of almost any other member state of the European Union. The aim of this paper is to evaluate the disparities in the financial performance of agricultural enterprises according to the legal form. We analysed and compared two groups of agricultural entities, agricultural cooperatives and business companies, for the period from 2005 to 2014. Based on an analysis of the differences using mathematical and statistical methods, we can conclude that the legal forms are distinguished in all monitored parameters and our hypothesis on the differences in economic performance of agricultural entities according to legal form was confirmed.
Journal: Applied Economics
Pages: 5999-6008
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645285
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645285
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:5999-6008




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Gesualdo
Author-X-Name-First: Maria
Author-X-Name-Last: Gesualdo
Author-Name: James A. Giesecke
Author-X-Name-First: James A.
Author-X-Name-Last: Giesecke
Author-Name: Nhi H. Tran
Author-X-Name-First: Nhi H.
Author-X-Name-Last: Tran
Author-Name: Francesco Felici
Author-X-Name-First: Francesco
Author-X-Name-Last: Felici
Title: Building a computable general equilibrium tax model for Italy
Abstract: 
 In this paper, we develop a multi-sectoral computable general equilibrium tax model for Italy allowing for a number of fiscal tools. We illustrate the methodology for modelling and accommodating the full range of direct and indirect taxes into the national general equilibrium model. In particular, we build a commodity tax matrix by commodity, source, user and tax type; and a production tax matrix by industry and tax type. We also put a special emphasis on the institutional sector accounts, incorporating a detailed system of equations. Our model provides a powerful tool for acquiring new insights in fiscal policy analysis, through the assessment of tailored tax reforms, which can consist of either changes in tax rates and tax bases for indirect and direct taxes. Finally, to validate the model we perform an equalizing Value-Added-Tax rates reform. We find that a budget-neutral uniform tax rate reform would be GDP and welfare improving. However, results across agents and sectors vary.
Journal: Applied Economics
Pages: 6009-6020
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1646875
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646875
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:6009-6020




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Zhang
Author-X-Name-First: Hong
Author-X-Name-Last: Zhang
Title: Gender difference in promotions: new evidence from the internal labor market in China
Abstract: 
 Gender differences in the labor market have attracted significant attention from economists, who focus on gender differences not only in wages but also in promotions. However, the research on gender differences in promotions within the internal labor market is scant, especially in China. By taking advantage of rare personnel administration data from a large firm in China, this paper explores different aspects of the gender promotion gap, and then further discusses the contribution of several individual and organizational variables in accounting for gender differences in each aspect of promotions.
Journal: Applied Economics
Pages: 6021-6033
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1646882
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646882
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:6021-6033




Template-Type: ReDIF-Article 1.0
Author-Name: William J. Crowder
Author-X-Name-First: William J.
Author-X-Name-Last: Crowder
Author-Name: Aaron Smallwood
Author-X-Name-First: Aaron
Author-X-Name-Last: Smallwood
Title: Volatility in productivity and the impact on unemployment
Abstract: 
 Volatility, and the uncertainty it creates, has long been recognized as a factor in economic decision making. Since hiring occurs before shocks to productivity are realized, firms’ investment in new labour is inherently risky. How large a role uncertainty in productivity has on aggregate unemployment is an empirical question that we attempt to answer. In this paper we measure the impact of higher volatility in labour productivity on the unemployment rate in the U.S. economy using a SVAR-GARCH-M model. Using the conditional standard deviation of productivity innovations from a multivariate GARCH model to measure uncertainty, we provide compelling evidence that unemployment increases with volatility. This estimated relative effect is actually larger for positive productivity shocks leading to unemployment declines only 60% as large as would have occurred using models that exclude uncertainty.
Journal: Applied Economics
Pages: 6034-6039
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1654079
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1654079
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:6034-6039




Template-Type: ReDIF-Article 1.0
Author-Name: María Arrazola
Author-X-Name-First: María
Author-X-Name-Last: Arrazola
Author-Name: José de Hevia
Author-X-Name-First: José de
Author-X-Name-Last: Hevia
Author-Name: José Félix Sanz-Sanz
Author-X-Name-First: José Félix
Author-X-Name-Last: Sanz-Sanz
Title: Assessing tax reforms through the elasticity of reported income: an empirical analysis for Spain
Abstract: 
 This paper demonstrates the usefulness of the elasticity of reported income to assess tax reforms from the perspectives of tax revenue and well-being. Employing different identification strategies, evidence is provided of the value of the elasticity of gross reported income in Spain and, based on this elasticity, a detailed assessment is made of the impact of the increase in marginal tax rates which the Spanish government approved in 2012. We use microdata from the Taxpayers Panel of the Institute for Fiscal Studies. The mean value of this elasticity for Spain is 0,363 with considerable heterogeneity depending on taxpayers’ characteristics.
Journal: Applied Economics
Pages: 6040-6053
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1654081
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1654081
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:6040-6053




Template-Type: ReDIF-Article 1.0
Author-Name: Lindon J. Robison
Author-X-Name-First: Lindon J.
Author-X-Name-Last: Robison
Author-Name: Trey Malone
Author-X-Name-First: Trey
Author-X-Name-Last: Malone
Author-Name: Jeffrey O. Oliver
Author-X-Name-First: Jeffrey O.
Author-X-Name-Last: Oliver
Author-Name: Richard E. Winder
Author-X-Name-First: Richard E.
Author-X-Name-Last: Winder
Author-Name: James W. Ogilvie
Author-X-Name-First: James W.
Author-X-Name-Last: Ogilvie
Title: How social capital influences medical choices: a study of colonoscopy decision-making
Abstract: 
 While many studies have focused on the aggregate effect of social relationships on economic outcomes, this study identifies how social relationships are likely to motivate individual decision-making as it relates to health care choices. Focusing on surveys collected about colonoscopies, we show that a key determining factor in the decision to undergo the procedure is the relational nature of the patient's health. That is, patients who consider how their health influences other people in their lives are more likely to get a colonoscopy. These results suggest that encouraging patients to consider their social relationships is likely to increase the likelihood that they undergo beneficial procedures.
Journal: Applied Economics
Pages: 2544-2555
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693020
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693020
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2544-2555




Template-Type: ReDIF-Article 1.0
Author-Name: Zigen Chen
Author-X-Name-First: Zigen
Author-X-Name-Last: Chen
Author-Name: Xu Xin
Author-X-Name-First: Xu
Author-X-Name-Last: Xin
Author-Name: Kang Chen
Author-X-Name-First: Kang
Author-X-Name-Last: Chen
Author-Name: Qingcheng Zeng
Author-X-Name-First: Qingcheng
Author-X-Name-Last: Zeng
Title: A location model for the departure port tax rebate policy
Abstract: 
 In this paper, a bi-level programming model is established to solve the decision problem of the departure port tax rebate policy (DPTRP). Based on the theory of user equilibrium, the model can optimize the selection of inland port (or domestic trade port) to implement the DPTRP with the goal of maximizing total generalized transportation cost under the constraint of the existing total construction investment. Based on genetic algorithm, a new algorithm is developed to solve the model, and numerical experiments are carried out using north-eastern China as the research object. The results show that the implementation of the DPTRP will reduce the tax refund time and cost of north-eastern China.
Journal: Applied Economics
Pages: 2556-2568
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693021
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693021
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2556-2568




Template-Type: ReDIF-Article 1.0
Author-Name: Jin-Hyuk Kim
Author-X-Name-First: Jin-Hyuk
Author-X-Name-Last: Kim
Author-Name: Benjamin Mitra-Kahn
Author-X-Name-First: Benjamin
Author-X-Name-Last: Mitra-Kahn
Title: The unintended consequences of crowdsourcing prior art search
Abstract: 
 A pilot programme run by the United States Patent and Trademark Office sought to crowdsource prior art search to help patent examiners examine patent applications in emerging technology areas. By comparing participating patent applications to a control group and using a differential awareness of the programme between domestic and foreign applicants as an instrument, we show that the programme did not have a significant effect on allowance rate, led to more requests for continued examination and boosted forward citations substantially. The programme also increased the patent examiner’s search effort both in terms of the number of search reports filed by the examiners and the number of references added by the examiners after the first office action.
Journal: Applied Economics
Pages: 2569-2579
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693022
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693022
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2569-2579




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Trucíos
Author-X-Name-First: Carlos
Author-X-Name-Last: Trucíos
Author-Name: Aviral K. Tiwari
Author-X-Name-First: Aviral K.
Author-X-Name-Last: Tiwari
Author-Name: Faisal Alqahtani
Author-X-Name-First: Faisal
Author-X-Name-Last: Alqahtani
Title: Value-at-risk and expected shortfall in cryptocurrencies’ portfolio: a vine copula–based approach
Abstract: 
 Risk management is an important and helpful process for investors, hedge funds, traders and market makers. One of its key points is the appropriate estimation of risk measures which can improve the investment decisions and trading strategies. The high volatility of cryptocurrencies turns them a really risky investment and consequently, appropriate risk measures estimation is extremely necessary. In this article, we deal with the estimation of two widely used risk measures such as Value-at-Risk and Expected Shortfall in a cryptocurrency context. To face the presence of outliers and the correlation between cryptocurrencies, we propose a methodology based on vine copulas and robust volatility models. Our procedure is illustrated in a seven-dimensional equal-weight cryptocurrency portfolio and displays good performance.
Journal: Applied Economics
Pages: 2580-2593
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693023
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693023
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2580-2593




Template-Type: ReDIF-Article 1.0
Author-Name: Tanweer Akram
Author-X-Name-First: Tanweer
Author-X-Name-Last: Akram
Author-Name: Huiqing Li
Author-X-Name-First: Huiqing
Author-X-Name-Last: Li
Title: An inquiry concerning long-term U.S. interest rates using monthly data
Abstract: 
 This paper undertakes an empirical inquiry concerning the determinants of the long-term interest rate on U.S. Treasury securities. It applies the bounds testing procedure to cointegration and error correction models within the autoregressive distributive lag (ARDL) framework, using monthly data and estimating a wide range of Keynesian models of long-term interest rates. While previous studies have mainly relied on quarterly data, the use of monthly data substantially expands the number of observations. This in turn enables the calibration of a wide range of models to test various hypotheses. The short-term interest rate is the key determinant of the long-term interest rate, while the rate of core inflation and the pace of economic activity also influence the long-term interest rate. A rise in the ratio of the federal fiscal balance (government net lending/borrowing as a share of nominal GDP) lowers the long-term interest rate on Treasury securities. The short- and long-run effects of short-term interest rates, the rate of inflation, the pace of economic activity, and the fiscal balance ratio on the long-term interest rate are estimated. The findings reinforce Keynes’s prescient insights on the determinants of government bond yields.
Journal: Applied Economics
Pages: 2594-2621
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693696
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693696
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2594-2621




Template-Type: ReDIF-Article 1.0
Author-Name: Aaron Gilbert
Author-X-Name-First: Aaron
Author-X-Name-Last: Gilbert
Author-Name: Alireza Tourani-Rad
Author-X-Name-First: Alireza
Author-X-Name-Last: Tourani-Rad
Title: Do penalties matter? The impact of the introduction of financial penalties in the United Kingdom for insider trading
Abstract: 
 Insider trading is widely thought to be rampant, resulting in considerable harm to financial markets despite efforts to deter insiders. The main tools to deter insider trading are the sanctions imposed by legislators, of which financial penalties are one type. Civil financial penalties come with a lower burden of proof, which may increase deterrence given the circumstantial nature of insider trading. However, financial penalties have been largely overlooked globally. We test the deterrence of civil financial penalties around the introduction of unlimited financial sanctions for insider trading in the UK in December 2001. We employ three measures of informed trading and two measures of price efficiency for 412 UK listed companies around 12 months either side of the enactment of the financial penalties. We observe evidence that financial penalties have generally increased the deterrence of insiders in the UK market.
Journal: Applied Economics
Pages: 2622-2635
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693697
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693697
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2622-2635




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W Clements
Author-X-Name-First: Kenneth W
Author-X-Name-Last: Clements
Author-Name: Jiawei Si
Author-X-Name-First: Jiawei
Author-X-Name-Last: Si
Author-Name: Eliyathamby A. Selvanathan
Author-X-Name-First: Eliyathamby A.
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: Demand elasticities for 9 goods in 37 countries
Abstract: 
 In most OECD countries, consumption absorbs more than three fourths of their country’s GDP. Therefore, the study of their consumption patterns is important. This paper gives up-to-date estimates of income and price elasticities for 9 commodities in each of 37 countries that are members (or affiliates) of the OECD. In addition, the paper presents a detailed analysis of OECD consumption patterns in the form of investigating empirical regularities and testing demand theory hypotheses. Using differential demand equations, we find that the hypothesis of homogeneity hypothesis is supported in all countries; there is some evidence that symmetry is problematic, although we cannot be sure about this; and preference independence (whereby the marginal utility of each good depends only on its consumption) is not rejected in 90% of the countries. The study also finds that income elasticities of rich countries are generally lower than those of poorer countries, and, in general, there is a negative linear relationship between own-price elasticities and income. These elasticities can be used as key inputs in economic policy modelling such as CGE modelling and GST estimation.
Journal: Applied Economics
Pages: 2636-2655
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693698
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693698
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2636-2655




Template-Type: ReDIF-Article 1.0
Author-Name: Shruti Sharma
Author-X-Name-First: Shruti
Author-X-Name-Last: Sharma
Title: Heterogeneity of imported intermediate inputs and labour: evidence from India’s input tariff liberalization
Abstract: 
 This article explores whether the nature of imports matters when examining the effects of trade on plant-level labour outcomes. Previous literature that examines this question mainly considers imported intermediate inputs as a homogenous group and is unable to reach a consensus on the effects of input tariff liberalization on employment and wages of skilled and unskilled workers. Exploiting detailed product-level information available on intermediate inputs from plant-level data for the Indian manufacturing sector, I distinguish between plants that import mainly for quality considerations as opposed to plants that seek imports as cheaper alternatives to domestic inputs. I find that strong complementarities exist between skilled workers and imported inputs for plants importing high-quality inputs. For plants importing intermediate inputs mainly as a cost-cutting strategy, input tariff liberalization leads to an increase in employment of both skilled and unskilled workers, but a decline in skill composition. This can best be explained as a strategy that achieves economies of scale. On average, as input tariffs liberalize, importing plants employ more workers and pay higher wages than non-importing plants.
Journal: Applied Economics
Pages: 1171-1187
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1355541
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355541
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1171-1187




Template-Type: ReDIF-Article 1.0
Author-Name: Kishore Joseph
Author-X-Name-First: Kishore
Author-X-Name-Last: Joseph
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Title: Intraday market effects in electronic soybean futures market during non-trading and trading hour announcements
Abstract: 
 This article investigates market reactions to major United States Department of Agriculture announcements during non-trading and trading hours in the soybean futures market using microstructure data. Following report release, volume increases and remains elevated for up to 15 to 20 minutes. The volume spikes for the non-trading releases relative to the trading releases, but are identical after the first reaction. Report releases during non-trading hours cause a large spike in volatility at the onset of trading which subsides quickly. In contrast, releases during trading hours result in a smaller volatility spike, which extends for 5–6 min at a higher magnitude. Adjusting volatility by normal trading volatility indicates that volatility in trading hour release is higher in both immediate response and persistence. Return correlations provide little evidence to support systematic under- or overreaction in prices regardless of when the report is released reflecting the efficiency of the market.
Journal: Applied Economics
Pages: 1188-1202
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1355542
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355542
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1188-1202




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Crowley
Author-X-Name-First: Frank
Author-X-Name-Last: Crowley
Author-Name: Philip McCann
Author-X-Name-First: Philip
Author-X-Name-Last: McCann
Title: Firm innovation and productivity in Europe: evidence from innovation-driven and transition-driven economies
Abstract: 
 This article examines the links between firm innovation and firm productivity performance across a range of European economies, and in particular, we explore the differences between countries which are in transition from efficiency-driven to innovation-driven with those which are primarily innovation-driven economies. We employ an endogenous-switching technique to explore micro-economic survey-based data from both innovating and noninnovating firms. The model allows us to construct counterfactual scenarios which overcome problems of self-selection in the data. Some of the findings provide support for the traditional patterns previously found in the innovation literature, in which innovation efforts and investments in physical and human capital are found to be important for product and process innovations in manufacturing and service firms and across economy types. Our counterfactual analysis also allows us to outline a rationale for policy intervention towards noninnovating firms as well as innovating firms depending on where the transitional heterogeneity effects are greatest.
Journal: Applied Economics
Pages: 1203-1221
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1355543
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355543
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1203-1221




Template-Type: ReDIF-Article 1.0
Author-Name: Weibo Xing
Author-X-Name-First: Weibo
Author-X-Name-Last: Xing
Author-Name: Qinghua Zhang
Author-X-Name-First: Qinghua
Author-X-Name-Last: Zhang
Title: The effects of vertical and horizontal incentives on local tax efforts: evidence from China
Abstract: 
 Tax effort is a measure of a government’s effort to collect taxes. This study explores what impacts both vertical and horizontal incentives have on local governments’ tax efforts in China. For consistency with the literature, we first include typical economic and institutional factors in our analysis. We find that the effects of economic factors on local tax efforts are significant, but the effects of institutional factors tend to be weak. Fiscal decentralization, as a vertical incentive, has a significantly positive effect on tax efforts at the provincial level. Meanwhile, fiscal interaction, as a horizontal incentive, is also taken into account in a spatial specification to explain tax competition among local governments. The results show that local tax effort in China also depends on the horizontal incentive. Hence, to improve local tax effort, the central government should let the locals have more autonomy in collecting taxes and evaluate local tax effort by referring to tax collection in adjacent provinces simultaneously.
Journal: Applied Economics
Pages: 1222-1237
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1355546
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355546
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1222-1237




Template-Type: ReDIF-Article 1.0
Author-Name: Ho Seoung Na
Author-X-Name-First: Ho Seoung
Author-X-Name-Last: Na
Author-Name: Daeho Lee
Author-X-Name-First: Daeho
Author-X-Name-Last: Lee
Author-Name: Junseok Hwang
Author-X-Name-First: Junseok
Author-X-Name-Last: Hwang
Author-Name: Changjun Lee
Author-X-Name-First: Changjun
Author-X-Name-Last: Lee
Title: Research on the mutual relations between ISP and ASP efficiency changes for the sustainable growth of the Internet industry
Abstract: 
 Innovations in Internet networks and applications are equally important. However, there is controversy in the literature regarding whether it is network or application innovation that leads to the development and innovation of Internet industries. In this study, the mutual relations of Internet service providers’ (ISP) and application service providers’ efficiency changes are analysed empirically using a Granger causality test. Over the entire period of 1998–2011, efficiency changes of web service companies positively Granger-cause those of ISPs and vice versa. In the case of VoIP and streaming services, however, efficiency changes of VoIP and streaming services Granger-cause those of ISPs during the former half period, whereas those of ISPs negatively Granger-cause efficiency changes of streaming services during the latter half. As services that require heavy data traffic and QoS guarantees are launched, a policy that promotes virtuous circulation between ISPs and application service providers (ASPs) is necessary for the development of all Internet-related industries.
Journal: Applied Economics
Pages: 1238-1253
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1358443
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1358443
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1238-1253




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Sébastien Pentecote
Author-X-Name-First: Jean-Sébastien
Author-X-Name-Last: Pentecote
Author-Name: Fabien Rondeau
Author-X-Name-First: Fabien
Author-X-Name-Last: Rondeau
Title: Withstanding financial crises: would trade partners help or hurt?
Abstract: 
 This article provides new empirical evidence on the losses of real activity caused by various financial shocks. Spillover effects due to foreign trade linkages deserve special attention. To this end, we estimate a modify auto-regressive process and a Seemingly Unrelated Regression Equations estimator is used to account for the dependency of one’s country growth on its trade-weighted partners growth. We run estimations on a set of currency collapses, banking crises and sovereign defaults in 49 advanced and developing countries from 1978 to 2011. The trade-weighted foreign demand effect mitigated the economic downturn following a banking or a sovereign debt crisis in all countries, while only the advanced ones benefited from it after a currency collapse. Trade-based spillover effects make banking crises more costly in the developing countries, in those that liberalize their financial account. It contrasts with what is observed during currency or sovereign debt crises.
Journal: Applied Economics
Pages: 1254-1267
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1358444
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1358444
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1254-1267




Template-Type: ReDIF-Article 1.0
Author-Name: Luuk Elkhuizen
Author-X-Name-First: Luuk
Author-X-Name-Last: Elkhuizen
Author-Name: Niels Hermes
Author-X-Name-First: Niels
Author-X-Name-Last: Hermes
Author-Name: Jan Jacobs
Author-X-Name-First: Jan
Author-X-Name-Last: Jacobs
Author-Name: Aljar Meesters
Author-X-Name-First: Aljar
Author-X-Name-Last: Meesters
Title: Financial development, financial liberalization and social capital
Abstract: 
 The relationship between financial liberalization policies and financial development is controversial. The impact of these policies differs greatly across countries. In the literature, the quality of formal institutions has been identified as an important source of this heterogeneity, as countries with a weak institutional environment generally fail to benefit from financial liberalization. Using panel data covering 82 countries for the period 1973–2008, we find evidence that social capital may substitute for formal institutions as a prerequisite for effective financial liberalization policies. In particular, we find that during the post Washington-consensus period countries with a high prevailing level of social capital can ensure that financial liberalization positively influences financial development, despite the poor quality of their formal institutions.
Journal: Applied Economics
Pages: 1268-1288
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1358446
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1358446
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1268-1288




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Pertold-Gebicka
Author-X-Name-First: Barbara
Author-X-Name-Last: Pertold-Gebicka
Title: Parental leave length and mothers’ careers: what can be inferred from occupational allocation?
Abstract: 
 This paper shows that the time spent on parental leave affects mothers’ careers several years after childbirth. It also shows that policy-relevant conclusions can be drawn from occupational allocation data even in the absence of individual wage or earnings information. I take advantage of a legislative reform that changed the duration of parental benefit payments effective in the Czech Republic in 2008. Introducing the possibility of the flexible timing of benefit collection over the period of 2–4 years, as opposed to the only option of 4 years before, the reform significantly increased the share of mothers returning to work before their youngest child turns four. This further translates to increased representation of employed mothers in high-skilled occupations and increases the average occupation wage of the affected mothers 6 to 8 years after childbirth. These findings indicate that shorter leaves are beneficial for mothers’ careers, at least in the medium run.
Journal: Applied Economics
Pages: 879-904
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646870
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646870
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:879-904




Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Cerda
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Cerda
Author-Name: Rodrigo Fuentes
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Fuentes
Author-Name: Gonzalo García
Author-X-Name-First: Gonzalo
Author-X-Name-Last: García
Author-Name: José I. Llodrá
Author-X-Name-First: José I.
Author-X-Name-Last: Llodrá
Title: Understanding domestic savings: an empirical approach
Abstract: 
 There are two unusual and important features in the evolution of the savings rate in Chile. First, the economy increased the average savings rate by 11 percentage points in the period 1985–2013 compared to 1960–1984, mainly due to a large change in private savings rate (10 percentage points), and an additional 1 percentage point from the public sector. The second feature is related to the change in the composition of private savings. After several years of nearly no corporate savings, this component became an important part of total savings reaching an average of almost 10% of Gross National Disposable Income (GNDI) during the period 1986–2012. Our results show that the 1984 tax reform, the boost in the marginal productivity of capital and the deepening of the financial market were the main drivers that explain the dramatic increase in corporate savings. We also found that the reduction in personal income tax after the tax reform and the higher income per capita growth helped to explain the increase in household savings, while the structural balance rule helped to explain the increase in public savings.
Journal: Applied Economics
Pages: 905-928
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646871
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646871
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:905-928




Template-Type: ReDIF-Article 1.0
Author-Name: Nirosha Hewa Wellalage
Author-X-Name-First: Nirosha Hewa
Author-X-Name-Last: Wellalage
Author-Name: Stuart Locke
Author-X-Name-First: Stuart
Author-X-Name-Last: Locke
Title: Remittance and financial inclusion in refugee migrants: inverse probability of treatment weighting using the propensity score
Abstract: 
 This paper investigates the impact on remittances on financial inclusion of refugee migrants. While financial inclusion is gaining traction in the humanitarian and development literature, the linkage with the potential to improve the wellbeing of refugees, who are part of an upward spiral in numbers, has not been tackled. We examine World Bank survey data of 1041 Syrian refugees, using the inverse probability of treatment weighting propensity score analysis (IPTW). The method minimises the influence of outliers and addresses unobservable and missing data biases, which can plague survey based data. We observe that common indicators of financial inclusion when applied to refugees, given their limited access to formal financial services, may introduce a bias as the informal financial sector and excluded formal financial sector services do contribute to inclusiveness. We adopt a broader protocol for our data, measuring financial inclusion through six metrics stemming from G20 proposals. Overall, there is an opportunity to deepen financial inclusion for refugees who receive or send remittances. The possibility of expanding the financial inclusion options, and for this to percolate through to greater social inclusion, proffers practical commercial steps and policy enabling actions.
Journal: Applied Economics
Pages: 929-950
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646876
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646876
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:929-950




Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: A nonparametric analysis of insufficient wage incentives in the Chinese health industry
Abstract: 
 This study provides empirical results on the insufficient wage incentives in the Chinese health industry, which may result in the poor productivity of high-ability medical personnel. We first propose a signaling game by capturing the progressive wage incentive in this industry. Then, we show that the model primitives are nonparametrically identified and estimable using recently developed methodologies related to measurement errors. Adopting a dataset from the China Household Income Project, we provide empirical evidence of the negative influence of insufficient wage incentives on the productivity of high-ability workers, especially those in higher job positions. As the number of high-ability workers in higher job positions is high, it is important to improve wage incentives in the Chinese health industry, especially for workers in higher job positions, to promote the productivity of high-ability medical workers.
Journal: Applied Economics
Pages: 951-969
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646877
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646877
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:951-969




Template-Type: ReDIF-Article 1.0
Author-Name: Eric W. Chan
Author-X-Name-First: Eric W.
Author-X-Name-Last: Chan
Title: Preschool for all? Enrollment and maternal labour supply implications of a bilingual preschool policy
Abstract: 
 Previous research supports the effectiveness of preschool in various contexts, yet there is limited evidence whether universal-type preschool policies induce changes in enrollment. While certain states have enacted universal preschool policies, some have also considered bilingual preschool mandates, either as a supplementary or stand-alone policy, requiring schools to open up bilingual classrooms for children from non-English speaking families. The question of whether bilingual preschool policies can induce enrollment and close achievement gaps between English learners and English speakers is particularly important today for urban cities and states with large immigrant populations. In this study, I exploit exogenous variation from the first bilingual prekindergarten mandate in Illinois to estimate the causal effects on preschool enrollment and maternal labour supply of recently immigrated and Hispanic families. Utilizing a difference-in-differences strategy, estimates suggest significant effects on preschool enrollment between 18% and 20% and no effects of increasing maternal labour supply in Illinois. Estimates are robust to various specifications, control groups, and timeframes. I use the analysis to further discuss whether universal preschool policies are designed sufficiently for access and inclusion of various student types, and contribute to our understanding on the effectiveness of using childcare subsidies to increase the welfare of low-income families.
Journal: Applied Economics
Pages: 970-986
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646881
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646881
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:970-986




Template-Type: ReDIF-Article 1.0
Author-Name: Cristian Barra
Author-X-Name-First: Cristian
Author-X-Name-Last: Barra
Author-Name: Nazzareno Ruggiero
Author-X-Name-First: Nazzareno
Author-X-Name-Last: Ruggiero
Author-Name: Roberto Zotti
Author-X-Name-First: Roberto
Author-X-Name-Last: Zotti
Title: Short- and long-term relation between economic development and government spending: the role of quality of institutions
Abstract: 
 This paper tests the Wagner’s assumption of the one-sided directional flow moving from economic growth to public spending considering an international database over the 1996–2012 period. By using indicators on the level of country control of corruption, government effectiveness, political stability, rule of law, regulatory quality and voice and accountability, the paper analyses the economic performance-public spending nexus controlling for the quality of the institutions. The empirical evidence supports the existence of the Wagner’s law, showing that, in the short-run, public spending positively reacts to a positive shock in national income, with a lower magnitude for democratic countries. In the long run, the error-correction model shows the convergence between public spending and national output occurring less quickly for non-democratic, low-income and to a smaller extent for non-OECD countries. Institutional quality, such as effort in controlling corruption and the presence of regulations that permit and promote private sector development, may help reducing the amount of per capita public spending and making it more productive. Higher expenses in compositional amenities such as public services for the elderly may explain why public spending per capita will increase the most in economies with a higher share of the population that need healthcare facilities.
Journal: Applied Economics
Pages: 987-1009
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646884
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646884
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:987-1009




Template-Type: ReDIF-Article 1.0
Author-Name: Kassoum Ayouba
Author-X-Name-First: Kassoum
Author-X-Name-Last: Ayouba
Author-Name: Julie Le Gallo
Author-X-Name-First: Julie
Author-X-Name-Last: Le Gallo
Author-Name: Andrés Vallone
Author-X-Name-First: Andrés
Author-X-Name-Last: Vallone
Title: Beyond GDP: an analysis of the socio-economic diversity of European regions
Abstract: 
 This paper aims to analyze the socioeconomic diversity of the European Union (EU-28) regions from a dynamic perspective. For that purpose, we combine a series of exploratory space-time analysis approaches to multiple Factor Analysis (MFA) applied to a large range of indicators collected at the NUTS-2 level for the period 2000–2015 for the EU-28. First, we find that the first factor of MFA, interpreted as economic development (ECO-DEV), is spatially clustered and that a moderate convergence process is at work between European regions from 2000 to 2015. Second, when comparing these results with those obtained for Gross Domestic Product (GDP) per capita, we show that the convergence pattern detected with GDP per capita is more pronounced: ECO-DEV adjusts slower over time compared to GDP per capita. Third, pictures provided by the remaining interesting factors, capturing educational attainment, population dynamics and employment, are very different.
Journal: Applied Economics
Pages: 1010-1029
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646885
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646885
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:1010-1029




Template-Type: ReDIF-Article 1.0
Author-Name: Ioanna Konstantakopoulou
Author-X-Name-First: Ioanna
Author-X-Name-Last: Konstantakopoulou
Title: The effects of government expenditure on imports in the Eurozone reconsidered: evidence from panel data
Abstract: 
 This study examines the impact of government expenditure on imports. The empirical analysis is based on annual data of the euro area countries for the period 1995–2015. We employ econometric methods that mitigate heterogeneity and cross-sectional dependence. We provide empirical indications that the components of expenditure have different impact on imports demand. The findings of this study indicate that the import context of government expenditure is lower than the import context of others expenditure components. Finally, we find that an increase in government expenditure leads to an increase in imports; this implies that, ceteris paribus that it can lead to a deterioration of the trade balance.
Journal: Applied Economics
Pages: 3231-3239
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418081
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418081
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3231-3239




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Deutscher
Author-X-Name-First: Christian
Author-X-Name-Last: Deutscher
Author-Name: Bernd Frick
Author-X-Name-First: Bernd
Author-X-Name-Last: Frick
Author-Name: Marius Ötting
Author-X-Name-First: Marius
Author-X-Name-Last: Ötting
Title: Betting market inefficiencies are short-lived in German professional football
Abstract: 
 In this article, we argue that potential inefficiencies on betting markets are more likely to exist at the very beginning of a season, when the available information on the teams’ playing strength is difficult to evaluate. This lack of reliable information should be particularly large in the case of recently promoted teams that have typically undergone major changes in the composition of their roster following their promotion. Without any information on the latter teams’ potential performance, they are particularly difficult to evaluate, which may eventually lead to inefficiencies and positive returns on investment in the betting market. We analyse odds from German first division Bundesliga soccer for the seasons from 2002/03 to 2015/16 to find betting market inefficiencies at the start of the season. As expected, betting on recently promoted team wins generates temporarily positive returns, especially for away games. These results suggest bookmakers to underestimate promoted teams’ ability to familiarize with the conditions in the new league, such as having to play in front of larger, often hostile crowds.
Journal: Applied Economics
Pages: 3240-3246
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418082
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418082
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3240-3246




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Rougieux
Author-X-Name-First: Paul
Author-X-Name-Last: Rougieux
Author-Name: Olivier Damette
Author-X-Name-First: Olivier
Author-X-Name-Last: Damette
Title: Reassessing forest products demand functions in Europe using a panel cointegration approach
Abstract: 
 In a panel of European countries, we analyse paper products, sawnwood and wood panels consumption data. With this object, we use a classical demand model where national consumption depends on real GDP and real prices. In contrast to previous panel estimations in the literature, we highlight non-stationarity time series which can lead to spurious regressions. We explicitly take into account the issue by using recent panel cointegration techniques. Cointegration is present for printing paper and fibreboard, though less clear cut for other products. Then we estimate demand elasticities and find that GDP elasticities are significantly lower than estimates from the literature. Finally, we simulate the implications of modified demand elasticities by using a partial equilibrium model of the forest sector. For most products, changes in elasticities would lead to lower projected demand and lower prices over a 20-year time horizon. Lower demand for solid wood and wood fibre would lead to less tensions with fuel wood- and wood-based chemical markets. In a context of rising interest for renewable bio-based products, updated long-term demand models contribute to the analysis of the forest sector’s sustainability.
Journal: Applied Economics
Pages: 3247-3270
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420887
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420887
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3247-3270




Template-Type: ReDIF-Article 1.0
Author-Name: Jin Young Lee
Author-X-Name-First: Jin Young
Author-X-Name-Last: Lee
Title: The upward trend in women’s college-going: the role of teenagers’ anticipated future labour force attachment
Abstract: 
 This article focuses on the role of teenagers’ anticipated labour force participation in explaining the upward trend in U.S. women’s college-going. A simple conceptual model implies that individuals with more anticipated lifetime hours of work are more likely to invest in college education. My analysis using data from three National Longitudinal Surveys supports the theoretical implication. This finding, combined with the trend towards higher work expectations of young women across birth cohorts, may account in part for the upward trends in women’s college attendance and completion.
Journal: Applied Economics
Pages: 3271-3284
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420888
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420888
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3271-3284




Template-Type: ReDIF-Article 1.0
Author-Name: Qian Long Kweh
Author-X-Name-First: Qian Long
Author-X-Name-Last: Kweh
Author-Name: Wen-Min Lu
Author-X-Name-First: Wen-Min
Author-X-Name-Last: Lu
Author-Name: Mohammad Nourani
Author-X-Name-First: Mohammad
Author-X-Name-Last: Nourani
Author-Name: Mohd Hisyam Ghazali @ Mohd Zain
Author-X-Name-First: Mohd Hisyam
Author-X-Name-Last: Ghazali @ Mohd Zain
Title: Risk management and dynamic network performance: an illustration using a dual banking system
Abstract: 
 This study applies dynamic network data envelopment analysis to compare a dual banking system, namely conventional and Islamic banks, with emphasis on risk measures. Non-oriented, variable return-to-scale dynamic network slacks-based measure is used to model the banking performance for the period 2008–2012. Under the consideration of risk measures, the findings highlight that Islamic banks excel in managerial efficiency while conventional banks surpass in profitability efficiency. Furthermore, the regression results find that the number of directors on the risk management committee has a positive impact on banking performance. Meanwhile, the high number of independent directors improves the profitability efficiency but worsens the managerial efficiency.
Journal: Applied Economics
Pages: 3285-3299
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420889
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420889
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3285-3299




Template-Type: ReDIF-Article 1.0
Author-Name: Jian-Xin Wu
Author-X-Name-First: Jian-Xin
Author-X-Name-Last: Wu
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Title: Urban–rural gap and poverty traps in China: A prefecture level analysis
Abstract: 
 Urban–rural gap and regional inequality are long-standing problems in China and result in considerable number of studies. This article examines the dynamic behaviours of incomes for both urban and rural areas with a prefectural data set. The analysis is conducted by using a distribution dynamics approach, which have advantages in examination on persistence, polarization and convergence clubs. The results show that persistence and immobility are the dominant characteristics in the income distribution dynamics. The prefectural urban and rural areas converge into their own steady states differentiated in income levels. This pattern of urban–rural gap also exists in three regional groups, namely the eastern, central and western regions. Examination on the dynamics of the poorest areas shows that geographical poverty traps exist in both urban and rural prefectural areas. Our results indicate that more policy interventions are required to narrow down the urban–rural gap and to eliminate the poverty traps in China.
Journal: Applied Economics
Pages: 3300-3314
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420890
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420890
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3300-3314




Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Shiyi Li
Author-X-Name-First: Shiyi
Author-X-Name-Last: Li
Title: Soft or hard information? A trade-off selection of environmental disclosures by way of peer imitation and geographical distance
Abstract: 
 With the public pressure  increasing, increasingly more number of studies explore how managers respond to outer pressures by using the environmental disclosure tool. However, previous studies ignore systematic research on the condition, duplicity and consequences of environmental disclosures. This article studies how geographical distance and peer imitation influence managers’ selection of soft and hard environmental disclosures and their economic consequences based on cost-benefit trade-off models and empirical data. The results indicate that when public pressure increases sharply, geographical distance has a negative influence on hard environmental disclosures, and peer imitation has a positive influence on soft environmental disclosures. Under the joint effect  of two factors, managers tend to disclose soft environmental information more than hard environmental information, which cannot only mitigate potential risks but also ensure good economic consequences. To restrict managers’ opportunistic disclosure behaviour and improve the disclosing level and quality of environmental information, detailed standard norms and heavy punishment measures should be established, and regulating departments should regulate the disclosure behaviour of distanced firms and check the redundancy of soft environmental information to ensure whether the same information is repeatedly disclosed in the annual reports.
Journal: Applied Economics
Pages: 3315-3330
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420891
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420891
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3315-3330




Template-Type: ReDIF-Article 1.0
Author-Name: H. Ben Hassine
Author-X-Name-First: H.
Author-X-Name-Last: Ben Hassine
Author-Name: F. Boudier
Author-X-Name-First: F.
Author-X-Name-Last: Boudier
Author-Name: C. Mathieu
Author-X-Name-First: C.
Author-X-Name-Last: Mathieu
Title: The two ways of FDI R&amp;D spillovers: evidence from the French manufacturing industry
Abstract: 
 Using French firm-level panel data, this study investigates R&amp;D spillovers from inward foreign direct investment (FDI) with respect to both horizontal and vertical linkages (backward and forward). Using a Crepon, Duguet and Mairesse (CDM) model, we estimate an R&amp;D-augmented Cobb–Douglas production function to assess the impact of R&amp;D spillovers on firm performance. The results emphasize that international spillovers (from foreign affiliates to local firms) have a greater effect on firm performance than reverse spillovers (from local firms to foreign affiliates) and are more likely to be backward than forward. Moreover, the effect of backward spillovers depends on a firm’s absorptive capacity and is amplified in the case of outsourcing relationships.
Journal: Applied Economics
Pages: 2395-2408
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240345
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240345
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2395-2408




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose
Author-X-Name-Last: Arreola Hernandez
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Author-Name: Mazin A. M. Al Janabi
Author-X-Name-First: Mazin A. M.
Author-X-Name-Last: Al Janabi
Author-Name: Juan Carlos Reboredo
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Reboredo
Title: Global financial crisis and dependence risk analysis of sector portfolios: a vine copula approach
Abstract: 
 We use regular vine (r-vine), canonical vine (c-vine) and drawable vine (d-vine) copulas to examine the dependence risk characteristics of three 20-stock portfolios from the retail, manufacturing and gold-mining equity sectors of the Australian market in periods before, during and after the 2008–2009 global financial crisis (GFC). Our results indicate that the retail portfolio is less risky than the manufacturing counterpart in the crisis period, while the gold-mining portfolio is less risky than both the retail and manufacturing sector portfolios. Both the retail and gold stocks display a higher propensity to yield positively skewed returns in the crisis periods, contrary to the manufacturing stocks. The r-vine is found to best capture the multivariate dependence structure of the stocks in the retail and gold-mining portfolios, while the d-vine does it for the manufacturing stock portfolio. These findings could be used to develop dependence risk- and investment risk-adjusted strategies for investment, rebalancing and hedging which more adequately account for the downside risk in various market conditions.
Journal: Applied Economics
Pages: 2409-2427
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240346
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240346
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2409-2427




Template-Type: ReDIF-Article 1.0
Author-Name: Bi-Huei Tsai
Author-X-Name-First: Bi-Huei
Author-X-Name-Last: Tsai
Title: Predicting the competitive relationships of industrial production between Taiwan and China using Lotka–Volterra model
Abstract: 
 This work is the first to apply Lotka–Volterra model combined with genetic algorithm (GA) to predict the production relationships of high-tech industry among different areas. Previous studies analysed the trade interdependency among various countries, but few studies have highlighted the quantitative evidence of production relationships. Thus, this study utilizes motherboard shipment volumes to predict the competitive relationships of industrial production on both sides of the Taiwan Strait. Specifically, this work uses simultaneous non-linear least square regression in combination with GAs for numerical parameter optimization of the proposed Lotka–Volterra model. The results of parameter estimation reveal that shipment growth in China substantially promotes that in Taiwan, whereas the shipment growth in Taiwan curtails that in China. The standard deviation of the estimated parameters from the 3000 iterated simulations is small, confirming the reliability and stability of our parameter estimations. According to equilibrium analysis, the results of Lyapunov function prove that the shipments of China and Taiwan will reach a stable long-term equilibrium. The potential production from China will ultimately be nearly 16 times as large as that from Taiwan. Finally, the analytical results of forecast accuracy confirm that Lotka–Volterra model performs better than conventional S-curve diffusion model in predicting motherboard shipments.
Journal: Applied Economics
Pages: 2428-2442
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240347
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240347
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2428-2442




Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Kang Wang
Author-X-Name-First: Wei-Kang
Author-X-Name-Last: Wang
Author-Name: Wen-Min Lu
Author-X-Name-First: Wen-Min
Author-X-Name-Last: Lu
Author-Name: Qian Long Kweh
Author-X-Name-First: Qian Long
Author-X-Name-Last: Kweh
Author-Name: Yu-Li Liu
Author-X-Name-First: Yu-Li
Author-X-Name-Last: Liu
Title: Decentralized and concentrated investments in China and the performance of Taiwanese listed electronic companies
Abstract: 
 Ever since China surpassed Taiwan to become the largest exporter of electronic products, dependence between the two sides has deepened, which prompts Taiwanese companies to go public in China. This study conducted the data envelopment analysis (DEA) and regression analysis to analyse the impacts of the depth and breadth of investments in China on the performance of Taiwanese listed electronic companies. The empirical results show that, the breath of the investments in China has a positive correlation with the performance of Taiwanese companies; while the depth of investments in China has a negative and significant effect on the performances due to the companies’ lack of know-how, which leads to a high-learning cost. In summary, companies should strategize their decentralized and concentrated investments in China.
Journal: Applied Economics
Pages: 2443-2455
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240348
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240348
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2443-2455




Template-Type: ReDIF-Article 1.0
Author-Name: Walid Mensi
Author-X-Name-First: Walid
Author-X-Name-Last: Mensi
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Ahmet Sensoy
Author-X-Name-First: Ahmet
Author-X-Name-Last: Sensoy
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Analysing dynamic linkages and hedging strategies between Islamic and conventional sector equity indexes
Abstract: 
 This study analyses the dynamic spillovers across 10 Dow Jones Islamic and conventional sector index pairs. Using various multivariate GARCH models, the results show significant time-varying conditional correlations for all the pairs. Moreover, there is evidence that the conditional correlations for all the sector pairs, except those of the Telecommunication and Utilities sectors, increase after the onset of the global financial crisis (GFC), suggesting non-subsiding risks, contagion effects and gradual greater financial linkages. The Islamic sectors’ risk exposure can be effectively hedged over time in diversified portfolios containing conventional sector stocks. These results provide several practical implications for portfolio managers and policymakers in regard to optimal asset allocations, portfolio risk management and the diversification benefits among these markets.
Journal: Applied Economics
Pages: 2456-2479
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240349
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240349
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2456-2479




Template-Type: ReDIF-Article 1.0
Author-Name: Shahriar Kibriya
Author-X-Name-First: Shahriar
Author-X-Name-Last: Kibriya
Author-Name: Zhicheng Phil Xu
Author-X-Name-First: Zhicheng Phil
Author-X-Name-Last: Xu
Author-Name: Yu Zhang
Author-X-Name-First: Yu
Author-X-Name-Last: Zhang
Title: The negative consequences of school bullying on academic performance and mitigation through female teacher participation: evidence from Ghana
Abstract: 
 Exploiting data from Ghanaian schools’ eighth grade students collected in 2011, we estimate the causal effects of school bullying on academic achievement and gender-based mitigating approaches by using propensity score matching (PSM) and doubly robust (DR) estimator approach. We find that students victimized by bullying score at least 0.22 standard deviation lower than their peers in a standardized mathematics examination. Meanwhile, we document that the effect of bullying is significantly attenuated in the presence of female teachers in the classroom. These results hold through a set of robustness checks including placebo regressions and matching quality test. We explain the results through gender difference in teaching paradigm and conclude that a feminine management approach in class is required to reduce the effect of bullying.
Journal: Applied Economics
Pages: 2480-2490
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240350
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240350
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2480-2490




Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Xianfang Su
Author-X-Name-First: Xianfang
Author-X-Name-Last: Su
Author-Name: Wanhai You
Author-X-Name-First: Wanhai
Author-X-Name-Last: You
Author-Name: Yinghua Ren
Author-X-Name-First: Yinghua
Author-X-Name-Last: Ren
Title: Asymmetric effects of oil price shocks on stock returns: evidence from a two-stage Markov regime-switching approach
Abstract: 
 The asymmetric effects of oil price shocks on stock returns have attracted the attention of many researchers in the past several decades. Most of these researchers’ studies, however, do not separate out the sources of oil price shocks when examining the asymmetric effects. In this article, we address this limitation using a two-stage Markov regime-switching approach. Our results indicate that oil supply and demand shocks have a null or minimal impact on stock returns in a low-volatility regime and a statistically significant impact in a high-volatility regime. We observe that oil demand shocks affect stock returns significantly more than oil supply shocks. A positive aggregate demand shock significantly increases stock returns, whereas a positive oil-specific demand shock markedly decreases stock returns. These results have important implications for policymakers and investors.
Journal: Applied Economics
Pages: 2491-2507
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240351
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240351
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2491-2507




Template-Type: ReDIF-Article 1.0
Author-Name: Iljoong Kim
Author-X-Name-First: Iljoong
Author-X-Name-Last: Kim
Author-Name: Jaewook Byeon
Author-X-Name-First: Jaewook
Author-X-Name-Last: Byeon
Author-Name: Dongwon Lee
Author-X-Name-First: Dongwon
Author-X-Name-Last: Lee
Title: Violent crime and female victimization: evidence from metropolitan regions in South Korea
Abstract: 
 In the economics of crime literature, victimization by crime has received less attention than the supply side of crime. This article investigates the relationship between violent crime and female victimization. We show that violent crime increases with both the overall female exposure and female proportion in the victim-target group. Potential interactions between these female characteristics and income inequality are also shown to influence the incidence of violent crime. Empirically, we introduce proxies for female characteristics that better reflect our hypotheses – for example, young unmarried female-headed households (for exposure to crime) and new job gains among females (for economic status). Using a panel of South Korean metropolitan regions, 2000–2011, we find that a certain limited change in these female characteristics could account for as much as 16% of violent crime.
Journal: Applied Economics
Pages: 4601-4616
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287860
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287860
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4601-4616




Template-Type: ReDIF-Article 1.0
Author-Name: Marie-Laure Breuillé
Author-X-Name-First: Marie-Laure
Author-X-Name-Last: Breuillé
Author-Name: Julie Le Gallo
Author-X-Name-First: Julie
Author-X-Name-Last: Le Gallo
Title: Spatial fiscal interactions among French municipalities within inter-municipal groups
Abstract: 
 Based on a unique data set of French municipalities and a large number of budgetary variables, we estimate the extent of spatial fiscal interaction among the 33,484 French municipalities in 2008 by accounting for inter-municipal cooperation. Using a spatial autoregressive model with inter-municipal group fixed effects, we show that spatial interactions among French municipalities are inflated by correlated effects that affect similarly municipalities that cooperate together. Removing these confounding effects leads to considerably smaller positive spatial interactions for tax decisions and even negative ones for capital expenditures. In addition, we observe a clear distinction between complementary choices on current budget items and substitutable choices on capital budget items.
Journal: Applied Economics
Pages: 4617-4637
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287861
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287861
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4617-4637




Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett
Author-X-Name-First: Lila J.
Author-X-Name-Last: Truett
Author-Name: Dale B. Truett
Author-X-Name-First: Dale B.
Author-X-Name-Last: Truett
Title: Cost relationships and globalization in the Australian clothing industry
Abstract: 
 Australia developed a substantial clothing industry with protectionist international trade policies, including prohibitively high tariffs, quotas, and subsidies. The industry became an important source of jobs, with over 6.5 per cent of total manufacturing employment at the close of the 1960s. As Australia has moved towards freer trade, employment in clothing production has fallen substantially. The question of whether the clothing industry can remain viable in its new environment became an important issue. Here, we examine two crucial economic considerations relating to that question: economies of scale and relations (substitute/complementary) between the various inputs, both domestic and outsourced foreign. The findings strongly indicate the presence of economies of scale and that the industry has reduced its unit costs over the period of study. The results also suggest that most of the inputs are substitutes for one another, although only the estimated cross price elasticities between capital and labour are highly statistically significant in both models utilized in the study. To be successful in the future, the Australian clothing industry will likely need to find market niches where it can offer superior products and/or service as well as further reduce its unit costs.
Journal: Applied Economics
Pages: 4638-4656
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287864
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287864
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4638-4656




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Borghesi
Author-X-Name-First: Richard
Author-X-Name-Last: Borghesi
Title: Pay for play: the financial value of NCAA football players
Abstract: 
 We explore the financial value of National Collegiate Athletic Association (NCAA) football recruits and establish a wage schedule based on the star ratings assigned to high school athletes by an independent talent evaluation agency. Evidence suggests that the contribution of higher-ranking recruits to team wins significantly increases revenues. While the NCAA currently prohibits universities from paying student-athletes, we estimate that if amateurism rules were rescinded and college football players were compensated according to their revenue-generating abilities then five-, four-, three-, and low-star players would be entitled to annual salaries of $799,000, $361,000, $29,000, and $21,000, respectively, in addition to athletic scholarships covering tuition, books, and room and board.
Journal: Applied Economics
Pages: 4657-4667
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287865
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287865
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4657-4667




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tatchawan Kanitpong
Author-X-Name-First: Tatchawan
Author-X-Name-Last: Kanitpong
Title: Do exchange rate changes have symmetric or asymmetric effects on the trade balances of Asian countries?
Abstract: 
 Recently the linear ARDL approach was modified and a non-linear version of the same approach that is used mostly to assess asymmetric effects of some exogenous variables on the dependent variable was introduced. The non-linear model was recently used by one study to show that indeed exchange rate changes have asymmetric effects on the trade balance of a few advanced countries. The same was demonstrated for transition economies by another study. In this article, we provide additional asymmetric effects from seven Asian economies by showing that in most cases we find evidence of short-run and long-run asymmetric effects of exchange rate changes on the trade balance. Like other studies, our findings are country specific.
Journal: Applied Economics
Pages: 4668-4678
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287867
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287867
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4668-4678




Template-Type: ReDIF-Article 1.0
Author-Name: Leo de Haan
Author-X-Name-First: Leo
Author-X-Name-Last: de Haan
Author-Name: Jan Willem van den End
Author-X-Name-First: Jan Willem
Author-X-Name-Last: van den End
Author-Name: Philip Vermeulen
Author-X-Name-First: Philip
Author-X-Name-Last: Vermeulen
Title: Lenders on the storm of wholesale funding shocks: saved by the central bank?
Abstract: 
 We provide empirical evidence on banks’ responses to shocks in the wholesale funding market, using data of 181 euro area banks over the period from August 2007 to June 2013. Responses to funding liquidity shocks for both banks’ lending volumes and loan rates, to households and corporates, are analysed in a panel VAR framework. We thereby distinguish banks by country, extent of Eurosystem borrowing, bank size and capitalization. The results show that shocks in the securities and interbank markets have significant effects on loan rates and credit supply, particularly of banks in stressed countries of the periphery. The results also suggest that central bank liquidity has mitigated this effect on lending volumes. Lending to nonfinancial corporations is more sensitive to wholesale funding shocks than lending to households. Lending volumes of large banks that are typically more dependent on wholesale funding and banks with large exposure to sovereign bonds show stronger responses to wholesale funding shocks.
Journal: Applied Economics
Pages: 4679-4703
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287868
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287868
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4679-4703




Template-Type: ReDIF-Article 1.0
Author-Name: Vasiliki Chatzikonstanti
Author-X-Name-First: Vasiliki
Author-X-Name-Last: Chatzikonstanti
Title: Breaks and outliers when modelling the volatility of the U.S. stock market
Abstract: 
 This study analyses volatility persistence of the U.S. stock market, after taking into account the role of breaks and outliers. By employing a wavelet-based algorithm, it identifies several outliers which are comfortably associated with major events such as the ‘Black Monday’ and the Asian crisis. There is also evidence of clustering of breaks and a substantial variation in the properties of the identified segments.
Journal: Applied Economics
Pages: 4704-4717
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293785
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293785
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4704-4717




Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Beaumais
Author-X-Name-First: Olivier
Author-X-Name-Last: Beaumais
Author-Name: Sauveur Giannoni
Author-X-Name-First: Sauveur
Author-X-Name-Last: Giannoni
Title: Insiders vs. outsiders in the hotel sector
Abstract: 
 We investigate whether entering an official hotel classification system is as lucrative as suggested in the tourism management literature. Indeed, in countries in which the official hotel classification system is voluntary, a substantial fraction of hotels choose not to enter the system, and are outsiders. Considering that being classified (being insider) as a predictor of the rate structure may raise an endogeneity issue, we apply the recursive semi-ordered probit model to control for endogeneity and appropriately assess the effect of being classified on price rates. Using a sample of 357 hotels of Corsica, we show that, in contrast to previous research, classification does not provide any rate premium. We also fully derive conditional probabilities and partial effects on differences in conditional probabilities within the recursive semi-ordered probit model.
Journal: Applied Economics
Pages: 5698-5711
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488061
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488061
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5698-5711




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Causal effects of the United States and Japan on Pacific-Rim stock markets: nonparametric quantile causality approach
Abstract: 
 This article adopts a nonparametric quantile causality approach to examine the causal effects of the U.S. and Japan stock markets on the stock markets of the Pacific-Rim region. This approach allows us to detect not only nonlinear causalities in conditional return (mean) and conditional volatility (variance) but also the asymmetries of causalities under extreme market conditions (bullish vs. bearish states). Our results provide significant evidence of causality in return and volatility at different points of the conditional distributions of returns, with the greater effects from the U.S. than from Japan. Asymmetric quantile causality patterns are particularly pronounced in the case of Japan.
Journal: Applied Economics
Pages: 5712-5727
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488062
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488062
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5712-5727




Template-Type: ReDIF-Article 1.0
Author-Name: Jens-Peter Loy
Author-X-Name-First: Jens-Peter
Author-X-Name-Last: Loy
Author-Name: Carsten Steinhagen
Author-X-Name-First: Carsten
Author-X-Name-Last: Steinhagen
Author-Name: Christoph Weiss
Author-X-Name-First: Christoph
Author-X-Name-Last: Weiss
Author-Name: Birgit Koch
Author-X-Name-First: Birgit
Author-X-Name-Last: Koch
Title: Price transmission and local market power: empirical evidence from the Austrian gasoline market
Abstract: 
 We analyse the impact of local market power on price margins and different dimensions of price adjustment dynamics (speed and asymmetry of price transmission) using data for a large number of individual gasoline stations in Austria. Specific attention is paid to threshold effects in price adjustment. Our results clearly suggest that the speed of price transmission between the Brent crude oil index and retail diesel prices is higher in a more competitive environment. While evidence on the relationship between local market power and asymmetries in the speed of price adjustment is mixed, our findings regarding asymmetries in price thresholds are clear: in regions where competition from neighbouring rivals is weak and/or consumers’ price elasticity of demand is low (stations located on the highway), positive thresholds significantly exceed negative ones, which corresponds to the ‘rockets and feathers phenomenon’. As expected, we observe that prices are lower in more competitive local markets.
Journal: Applied Economics
Pages: 5728-5746
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488063
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488063
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5728-5746




Template-Type: ReDIF-Article 1.0
Author-Name: David C. Vitt
Author-X-Name-First: David C.
Author-X-Name-Last: Vitt
Author-Name: Alexander F. McQuoid
Author-X-Name-First: Alexander F.
Author-X-Name-Last: McQuoid
Author-Name: Charles Moore
Author-X-Name-First: Charles
Author-X-Name-Last: Moore
Author-Name: Stephen Sawyer
Author-X-Name-First: Stephen
Author-X-Name-Last: Sawyer
Title: Trigger warning: the causal impact of gun ownership on suicide
Abstract: 
 With a growing debate over tighter firearm regulations, we consider an important social consequence of increased firearm access: increased firearm suicides. Using data from the federal criminal background check system, we consider the impact of firearm ownership on firearm suicide rates. To deal with concerns of identification, we instrument for firearm background checks with state-year-level Google search intensity for phrases that reflect fear of future gun shortages and learning about the constitutional rights of firearm owners. We find that an increase in firearm ownership has a sizable and statistically significant impact on firearm suicide rates. A 10% increase in firearm ownership increases firearm suicide rates by approximately 3%, which is five times larger than non-instrumented estimates. Furthermore, we find no effect of gun ownership on non-firearm suicide rates, suggesting our findings are not simply capturing a suicide method substitution effect. The results are consistent with a variety of validity and robustness tests. Our results make clear the link between firearm ownership and firearm suicide rates, which have increased dramatically over the last decade.
Journal: Applied Economics
Pages: 5747-5765
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488064
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488064
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5747-5765




Template-Type: ReDIF-Article 1.0
Author-Name: M.A. Véganzonès-Varoudakis
Author-X-Name-First: M.A.
Author-X-Name-Last: Véganzonès-Varoudakis
Author-Name: H. T. M. Nguyen
Author-X-Name-First: H. T. M.
Author-X-Name-Last: Nguyen
Title: Investment climate, outward orientation and manufacturing firm productivity: new empirical evidence
Abstract: 
 Drawing on the World Bank Enterprise Surveys, we revisit the link between firm-level investment climate and productive performance for a panel of enterprises surveyed twice in time in 70 developing countries and 11 manufacturing industries. We take advantage of the time dimension available for an increasing number of countries to tackle the endogeneity issue stressed in previous studies. We also use pertinent econometric techniques to address other biases inherent in the data (e.g.measurement errors, missing observations and multicollinearity). Our results reinforce previous findings by validating, with a larger than usual sample of countries and industries, the importance of a larger set of environment variables. We show that infrastructure quality, information &amp; communication technologies, skills and experience of the labour force, cost of and access to financing, security and political stability, competition and government relation contribute to firms’ and countries’ performances gap. The empirical analysis also illustrates that firms which choose an outward orientation have higher productivity level. Nevertheless, outward oriented enterprises are more sensitive to investment climate limitations. These findings have important policy implications by showing which dimensions of the business environment, in which industry, could help manufacturing firms to be more competitive in the present context of increasing globalization.
Journal: Applied Economics
Pages: 5766-5794
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488065
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488065
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5766-5794




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Cipollini
Author-X-Name-First: Andrea
Author-X-Name-Last: Cipollini
Author-Name: Fabio Parla
Author-X-Name-First: Fabio
Author-X-Name-Last: Parla
Title: Credit demand and supply shocks in Italy during the Great Recession
Abstract: 
 In this article, we use Structural VAR analysis to disentangle credit demand and supply shocks and their effect on real economic activity in Italy during the 2008 to 2014 crisis period. The three endogenous variables considered are the loan interest rate, the loans growth rate and the employment to population ratio. The data are observed at annual frequency for each of 103 Italian provinces. The empirical evidence suggests that the variance of the shocks varies across four Italian macro-regions: North, Centre, South and Islands, and hece heteroscedasticity is used to identify (ex ante) the structural shocks. Sign restrictions are used to interpret shocks ex post. The empirical findings suggest a prominent role of credit supply shock in shaping real activity dynamics and also that credit crunch hits the North of Italy less than the remaining macro-regions, especially the South of Italy.
Journal: Applied Economics
Pages: 5795-5813
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488066
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488066
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5795-5813




Template-Type: ReDIF-Article 1.0
Author-Name: Berangere Legendre
Author-X-Name-First: Berangere
Author-X-Name-Last: Legendre
Author-Name: Annaig-C. Pedrant
Author-X-Name-First: Annaig-C.
Author-X-Name-Last: Pedrant
Author-Name: Mareva Sabatier
Author-X-Name-First: Mareva
Author-X-Name-Last: Sabatier
Title: Should I stay or should I go? An econometric analysis of retirement decisions by couples
Abstract: 
 This article analyses retirement decisions from a household perspective, treating the retirement timing of spouses as potentially interdependent choices. To identify the determinants of retirement decisions by couples and the effects of spousal retirement, this research estimates bivariate probit models in a multi-country setting. The results show a significant joint retirement trend: both men and women are more likely to retire if their spouse already has retired. Strong asymmetric behaviours arise by gender though, with high crosscountry heterogeneity, reflecting institutional differences in both pension and public health systems.
Journal: Applied Economics
Pages: 5814-5829
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488067
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488067
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5814-5829




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaofen Chen
Author-X-Name-First: Xiaofen
Author-X-Name-Last: Chen
Title: Globalization and household saving: is there a link?
Abstract: 
 This article proposes that globalization can affect household saving in the long run in a number of ways. Social interactions between different cultures can induce value changes, which can result in shifts in consumption and saving behaviour. International trade allows consumers to have easier access to status goods, stimulating consumption and dampening saving. Extending from Veblen’s conspicuous consumption theory, saving may also decrease when globalization leads to greater population mobility and fosters urbanization, thus enhancing the importance of consumption as a way to display wealth. In addition, financial globalization reduces credit constraints and allows households to save less. Using cross-country data from the United Nations (UN), the OECD, and other sources, this article finds evidence that household saving declines as globalization deepens, especially in the social and cultural dimensions.
Journal: Applied Economics
Pages: 2797-2816
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248355
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248355
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2797-2816




Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Author-Name: Adrian (Wai-Kong) Cheung
Author-X-Name-First: Adrian (Wai-Kong)
Author-X-Name-Last: Cheung
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: Quantile serial dependence in crude oil markets: evidence from improved quantilogram analysis with quantile wild bootstrapping
Abstract: 
 We examine the quantile serial dependence in crude oil prices based on the Linton and Whang’s quantile-based portmanteau test which we improved by means of quantile wild bootstrapping (QWB). Through Monte Carlo simulation, we find that the quantile wild bootstrap-based portmanteau test performs better than the bound testing procedure suggested by Linton and Whang. We apply the improved test to examine the efficiency of two crude oil markets – WTI and Brent. We also examine if the dependence is stable via rolling sample tests. Our results show that both WTI and Brent are serially dependent in all, except the median quantiles. These findings suggest that it may be misleading to examine the efficiency of crude oil markets in terms of mean (or median) returns only. These crude oil markets are relatively more serially dependent in non-median ranges.
Journal: Applied Economics
Pages: 2817-2828
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248356
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248356
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2817-2828




Template-Type: ReDIF-Article 1.0
Author-Name: Sascha L. Schmidt
Author-X-Name-First: Sascha L.
Author-X-Name-Last: Schmidt
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Author-Name: Verena Jung
Author-X-Name-First: Verena
Author-X-Name-Last: Jung
Title: Perceived trade-off between education and sports career: evidence from professional football
Abstract: 
 To explore the attitudes towards risky career choices of young people in highly competitive environments, we surveyed almost 1000 football players in the youth academies of German professional clubs (Bundesliga), who must generally decide early in their careers whether or not to risk quitting school to focus solely on a professional football career. Based on the survey responses, we empirically analysed which factors influence these youths’ tendencies to choose a high-risk career option over a lower risk one. Our results seem to indicate that such risk taking in competitive environments can be explained by potential benefits expected from this decision, as well as judgments about the likelihood of achieving the desired career. Risk attitudes towards career choices vary by differences in individuals’ estimates of the potential benefits and in particular, in their own assessments of the likelihood of success, which is an important driver of risk acceptance. We also found that opportunity cost considerations influence risk acceptance: the better the low-risk option, the less willing the individual to give it up for a high-risk alternative. In addition, both national origin and level of cultural integration play a role in attitudes towards risky career choices, with reductions in the latter increasing the risk premium of quitting school.
Journal: Applied Economics
Pages: 2829-2850
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248357
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248357
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2829-2850




Template-Type: ReDIF-Article 1.0
Author-Name: David Grigorian
Author-X-Name-First: David
Author-X-Name-Last: Grigorian
Author-Name: Vlad Manole
Author-X-Name-First: Vlad
Author-X-Name-Last: Manole
Title: Sovereign risk and deposit dynamics: evidence from Europe
Abstract: 
 The unprecedented expansion of sovereign balance sheets since the beginning of the global crisis has given a new meaning to the term sovereign risk. Developments in Europe since early 2010 revealed new challenges for the functioning of private banks in an environment of heightened sovereign risk and may have contributed to deleveraging. The article uses an innovative way of measuring the perception of sovereign risk and its impact. Using an extension of a common market discipline framework, it shows that exposure to sovereign risk may have limited the ability of banks in Europe to collect deposits. Potential identification issues between deposits and bank efficiency are controlled by using data envelopment analysis (DEA). The results are robust to inclusion of conventional measures of bank performance and the sector-wide holdings of foreign sovereign debt.
Journal: Applied Economics
Pages: 2851-2860
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248358
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248358
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2851-2860




Template-Type: ReDIF-Article 1.0
Author-Name: Genevieve Knight
Author-X-Name-First: Genevieve
Author-X-Name-Last: Knight
Author-Name: Michael White
Author-X-Name-First: Michael
Author-X-Name-Last: White
Title: Training and employee mobility in the British private and public sectors
Abstract: 
 The realization of the value of training for employees can take time as the training contributes dynamically to an extended development process. This research examines the empirical returns to training in three post-training situations: when the employee remains in the same job and with the same employer; when the employee transfers to a different job but remains with the same employer (internal mobility); and when the employee moves to a different employer (external mobility). Panel data and fixed effects (FE) methodology are used to quantify the joint effects of in-job training and mobility, while minimizing the potentially biasing effect of unobserved ability. In a period when public sector employment in Britain was contracting sharply, the short-term returns to training are nonetheless greater in the public sector, while the medium-term returns for both public sector and private sector employees depend on remaining within sector. The general/specific training mix, institutional influences, adverse selection, and the concept of ‘transferable’ training, all contribute to interpretation.
Journal: Applied Economics
Pages: 2861-2874
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248359
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248359
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2861-2874




Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou
Author-X-Name-First: Chris
Author-X-Name-Last: Sakellariou
Title: Private or public school advantage? Evidence from 40 countries using PISA 2012-Mathematics
Abstract: 
 It is known that in most countries, private school students outperform students in public schools in international assessments. However, the empirical literature recognizes that assessing the true effect of private school attendance requires addressing selection and sorting issues on both observabland unobservables. The existing empirical evidence on the private school effect mostly covers OECD and Latin American countries, with little evidence on other parts of the world. There is recent emerging country-specific evidence doubting the existence of a private school advantage. I use PISA 2012 data for Mathematics and two different methodologies to derive baseline and bias-corrected estimates of the private-dependent and independent school effect for 40 countries. A robust private school advantage is found only in a handful of countries. Public schools generally perform as well as private subsidized schools and outperform independent schools. Accounting for both peer effects and selection is necessary when evaluating school effectiveness, especially in the case of independent schools.
Journal: Applied Economics
Pages: 2875-2892
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248361
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248361
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2875-2892




Template-Type: ReDIF-Article 1.0
Author-Name: Fang Zhang
Author-X-Name-First: Fang
Author-X-Name-Last: Zhang
Title: Confidence and the transmission of macroeconomic uncertainty in U.S. recessions
Abstract: 
 This article studies the role of confidence in the transmission of uncertainty shocks during U.S. recessions. I use smooth-transition vector-autoregression (ST-VAR) to examine the regime-dependent effect of uncertainty shocks, and a counterfactual decomposition to isolate the role of confidence when the economy is in different regimes, recessions and non-recessions. I find that shutting down the confidence channel leads to greatly dampened and less persistent effects of uncertainty shocks, especially during recessions. I also find that the cross-regime difference in the role of confidence can largely explain the cross-regime short-run difference in the effects of uncertainty shocks.
Journal: Applied Economics
Pages: 2893-2909
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251554
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251554
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2893-2909




Template-Type: ReDIF-Article 1.0
Author-Name: Erika Raquel Badillo
Author-X-Name-First: Erika Raquel
Author-X-Name-Last: Badillo
Author-Name: Rosina Moreno
Author-X-Name-First: Rosina
Author-X-Name-Last: Moreno
Title: What drives the choice of the type of partner in R&amp;D cooperation? Evidence for Spanish manufactures and services
Abstract: 
 We analyse the heterogeneity in firms’ decisions to engage in R&amp;D cooperation, taking into account the type of partner (competitors, suppliers or customers, and research institutions) and the sector to which the firm belongs (manufactures or services). We use information from the Technological Innovation Panel (PITEC) for Spanish firms and estimate multivariate probit models corrected for endogeneity which explicitly consider the interrelations between the different R&amp;D cooperation strategies. We find that placing a higher importance to publicly available information (incoming spillovers), receiving public funding and firm size increase the probability of cooperation with all kind of partners but the role is much stronger in the case of cooperative agreements with research institutions and universities. Our results also suggest that R&amp;D intensity and the importance attributed to the lack of qualified personnel as a factor hampering innovation are key factors influencing positively R&amp;D cooperation activities in the service sector but not in manufactures.
Journal: Applied Economics
Pages: 5023-5044
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170932
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170932
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5023-5044




Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Brunner
Author-X-Name-First: Lawrence
Author-X-Name-Last: Brunner
Author-Name: Joseph Pate
Author-X-Name-First: Joseph
Author-X-Name-Last: Pate
Title: Promoting entry of high-quality workers through US immigration policy
Abstract: 
 We examine how US immigrants would be affected by applying a simple point system for admission, as Canada does. Since US immigration policy emphasizes family reunification, immigrants have lower education and earnings than natives, with unauthorized immigrants’ education below legal ones. Using American Community Survey data, and Center for Migration Studies data, which allows us to distinguish legal from unauthorized immigrants, we examine the effects of requiring immigrants to meet 2 of 3 conditions: (1) a high school or college degree, (2) being less than 40 years old and (3) working in a professional occupation, while admitting the same numbers of immigrants. This policy changes the source countries of immigrants and there are large positive effects on immigrant earnings. Immigrants’ use of government transfer programs is reduced to below natives and income inequality falls. Finally, with existing policy, immigrant earnings growth is not enough to overtake natives given immigrants’ entering earnings disadvantage. With this point system, immigrants start at a higher level and surpass natives relatively quickly.
Journal: Applied Economics
Pages: 5045-5059
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170933
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170933
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5045-5059




Template-Type: ReDIF-Article 1.0
Author-Name: Felisitas Defung
Author-X-Name-First: Felisitas
Author-X-Name-Last: Defung
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis
Abstract: 
 More than a decade following the severe economic crisis 1997, Indonesia has undergone major regulatory changes in its banking industry. This article examines the impact of these regulatory changes on the relative technical efficiency (TE) of the Indonesian banking industry employing data envelopment analysis (DEA) and censored Tobit regression model. Additionally, the bootstrap approach of Simar and Wilson is employed to provide statistical properties to the DEA efficiency score. The findings show that the industry on average is inefficient over the period of analysis. Also, state-owned and foreign-owned banks are found to be more efficient than any other group of banks. Finally, the impact of regulatory reforms is generally positive and statistically significant.
Journal: Applied Economics
Pages: 5060-5074
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170934
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170934
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5060-5074




Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Author-Name: A. Doruk Gunaydin
Author-X-Name-First: A. Doruk
Author-X-Name-Last: Gunaydin
Title: Liquidity and equity returns in Borsa Istanbul
Abstract: 
 We investigate the relationship between expected returns and liquidity measures in Borsa Istanbul. To do so, we gather a wide range of illiquidity measures that can be applied to the market. Firm-level cross-sectional regressions indicate that there is a positive relationship between various illiquidity measures and one- to six-month ahead stock returns. Findings of the article are robust after using different sample periods and controlling for well-known priced factors, such as market beta, size, book-to-market ratio and momentum. The portfolio analysis reveals that stocks that are in the highest illiquidity quintile earn 7.2%–19.2% higher risk-adjusted annual returns than those in the lowest illiquidity quintile. The illiquidity premium is stronger for small stocks and stocks with higher return volatility and it increases (decreases) during periods of extremely low (high) market returns.
Journal: Applied Economics
Pages: 5075-5092
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170935
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170935
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5075-5092




Template-Type: ReDIF-Article 1.0
Author-Name: Sandra Cavaco
Author-X-Name-First: Sandra
Author-X-Name-Last: Cavaco
Author-Name: Edouard Challe
Author-X-Name-First: Edouard
Author-X-Name-Last: Challe
Author-Name: Patricia Crifo
Author-X-Name-First: Patricia
Author-X-Name-Last: Crifo
Author-Name: Antoine Rebérioux
Author-X-Name-First: Antoine
Author-X-Name-Last: Rebérioux
Author-Name: Gwenaël Roudaut
Author-X-Name-First: Gwenaël
Author-X-Name-Last: Roudaut
Title: Board independence and operating performance: analysis on (French) company and individual data
Abstract: 
 This article studies the relationship between board independence and firm operating performance in French listed companies. We take advantage of an original database, with a time-series dimension that can be used to mitigate heterogeneity and dynamic endogeneity issues. In addition, this database can be disaggregated at the individual (director) level. This design enables us to introduce firm fixed effects and individual fixed effects in firm performance equations, thereby controlling for heterogeneity at the firm and individual levels. Our main result is to document a significant negative relationship between independence and accounting performance. This result suggests that, in the French context, the costs of independence (i.e. the informational gap supported by independent directors compared to insiders and affiliated directors) outweigh the benefits of independence (i.e. the reduction in agency costs).
Journal: Applied Economics
Pages: 5093-5105
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170936
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170936
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5093-5105




Template-Type: ReDIF-Article 1.0
Author-Name: Chyan Yang
Author-X-Name-First: Chyan
Author-X-Name-Last: Yang
Author-Name: Tung-Pao Wang
Author-X-Name-First: Tung-Pao
Author-X-Name-Last: Wang
Title: Productivity comparison of European airlines: bootstrapping Malmquist indices
Abstract: 
 The study explored the operating efficiency and variability of productivity estimates of European airlines. We applied Malmquist productivity indices (MPI) with a bootstrap method to assess the productivities of European airlines in four regions in Europe. The productivity of small-sized airlines lagged further behind that of large-sized airlines because of their inferior technological change (TC) effects derived from inefficient resource allocation to sustain a competitive advantage. This study also indicated that the Western European airlines were more efficient on average than those in other areas of Europe. The applications of Malmquist productivity techniques in assessing the performance of European airlines are highlighted in their effective resource allocation, sustained competitive advantage and optimized operating performance.
Journal: Applied Economics
Pages: 5106-5116
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170937
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170937
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5106-5116




Template-Type: ReDIF-Article 1.0
Author-Name: Srinidhi Kanuri
Author-X-Name-First: Srinidhi
Author-X-Name-Last: Kanuri
Author-Name: Robert W. McLeod
Author-X-Name-First: Robert W.
Author-X-Name-Last: McLeod
Title: Sustainable competitive advantage and stock performance: the case for wide moat stocks
Abstract: 
 ‘In business, I look for economic castles protected by unbreachable “Moats”’. Warren Buffett Companies that have sustainable competitive advantages should be able to create a barrier (Moat) to prevent or lessen competition from other firms. The wider the Moat the greater the barrier and the more secure the company’s profitability. Using the Morningstar classification of ‘Wide Moat’ stocks, we construct annually rebalanced equal- and value-weighted portfolios to analyse their performance in order to determine if they deliver superior performance relative to standard benchmark portfolios. The period for our analysis extends from June 2002 through May 2014. We find that the ‘Wide Moat’ portfolios outperform both the S&amp;P 500 and Russell 3000 indices generating higher average monthly and annualized returns, Sharpe Ratio, Sortino Ratio, Treynor Ratio, Omega Ratio, Upside Potential Ratio, M2, M2 Alpha, and cumulative returns. When we compute alpha using Carhart four-factor and Fama–French five-factor models, we find that ‘Wide Moat’ portfolios had significantly positive risk-adjusted alphas with both the models. ‘Wide Moat’ portfolios also lost less value during the 2007–2009 financial crisis compared to both S&amp;P 500 and Russell 3000. In conclusion, we find that ‘Wide Moat’ stocks have created significant value for their investors over the course of our study.
Journal: Applied Economics
Pages: 5117-5127
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170938
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170938
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5117-5127




Template-Type: ReDIF-Article 1.0
Author-Name: Tullio Gregori
Author-X-Name-First: Tullio
Author-X-Name-Last: Gregori
Author-Name: Marco Giansoldati
Author-X-Name-First: Marco
Author-X-Name-Last: Giansoldati
Title: Import demand in heterogeneous panel data with cross-sectional dependence
Abstract: 
 We investigate the long-run income and price elasticity of import demand functions with a heterogeneous unbalanced panel of 34 countries over the period 1985:q1-2018:q3. To estimate world elasticities the model is tested with the activity variables derived from the theoretical and empirical literature: GDP, GDP minus exports, Private Demand, Aggregate Domestic Demand, National Cash Flow, and Import intensity-Adjusted Demand (IAD). First, we evaluate time series properties using second generation panel unit root and cointegration tests. Second, we rely on the dynamic common correlated effects mean groups (CCEMG) estimator to deal with cross-sectional dependence (CSD). We find that the IAD, whose world elasticity is close to one, is the best performing specification. Our results confirm that the most appropriate activity variable to assess import demand should encompass intermediate goods as suggested by the recent literature on global supply chains. Moreover, we partially solve the puzzle of the recent trade slowdown since, taking stock of the role of intermediates, the time needed to resort to the long run equilibrium in the aftermath of a global turmoil is greater than that predicted by previous studies.
Journal: Applied Economics
Pages: 443-458
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645944
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645944
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:443-458




Template-Type: ReDIF-Article 1.0
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Marinko Skare
Author-X-Name-First: Marinko
Author-X-Name-Last: Skare
Author-Name: Sanja Blazevic Buric
Author-X-Name-First: Sanja Blazevic
Author-X-Name-Last: Buric
Title: Testing Okun’s law. Theoretical and empirical considerations using fractional integration
Abstract: 
 Full employment remains at the center of any economic policy. Following Okun’s conclusion regarding the trade-off relation between unemployment and real gross national product growth, new studies on different aspects of variable and methodological issues have brought new light to the theory. The purpose of this paper is to investigate the unemployment/GDP relationship, i.e. Okun’s Law, in order to test the basic Okun’s assumption taking into account modern economic circumstances and new methodological specifications. This study analyzes the series for 24 selected countries using fractionally integrated methods. Using these techniques, the results substantially change across countries and also depending on the specification of the error term. Unemployment and output growth rates series show some degree of long memory behavior for most countries while the stability of Okun’s coefficient is also challenged since it changes drastically. Estimated gaps are quite high, not only for −0.30 standard coefficient values but also when compared with other studies’ results. Policy makers can be assisted with these techniques in their efforts to design optimal economic policy to achieve full employment.
Journal: Applied Economics
Pages: 459-474
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646407
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646407
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:459-474




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Fink
Author-X-Name-First: Alexander
Author-X-Name-Last: Fink
Title: German income taxation and the timing of marriage
Abstract: 
 I investigate how the German income tax code affects the timing of marriages. The German income tax code allows married couples to benefit from full income splitting relative to unmarried couples. If their individual incomes differ, legally married couples may benefit from jointly filing their income taxes and thus fully splitting their incomes because of increasing marginal tax rates. The gain from joint taxation for married couples arises every year including the year in which they marry, independent of the month of the marriage. I use data from the German Socio-Economic Panel to test whether couples with larger gains from joint taxation are more likely to marry late in one year instead of early in the subsequent year. The results provide support for the hypothesis that pecuniary gains from joint taxation incentivize couples to prepone their marriages to the last quarter of a year, especially to December.
Journal: Applied Economics
Pages: 475-489
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646873
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646873
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:475-489




Template-Type: ReDIF-Article 1.0
Author-Name: Rui Guo
Author-X-Name-First: Rui
Author-X-Name-Last: Guo
Author-Name: Wei Sun
Author-X-Name-First: Wei
Author-X-Name-Last: Sun
Author-Name: Jianqiu Wang
Author-X-Name-First: Jianqiu
Author-X-Name-Last: Wang
Author-Name: Gang Xiao
Author-X-Name-First: Gang
Author-X-Name-Last: Xiao
Title: Why do retired workers claim their social security benefits so early? A potential explanation based on the cumulative prospect theory
Abstract: 
 Social Security provides longevity insurance for older Americans. According to expected utility theory models, rational households who are not liquidity constrained should delay claiming their Social Security benefits to insure consumption in late life. However, data shows that most retired workers claim soon after becoming eligible. This paper explains the early claiming behaviors using the cumulative prospect theory. We show that when making claiming decisions, individuals consider benefit gains and losses from delaying claiming relative to claiming immediately. Fear of receiving less lifetime benefits in the event of early death induces them to claim immediately.
Journal: Applied Economics
Pages: 490-505
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646874
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646874
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:490-505




Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa
Author-X-Name-Last: Awaworyi Churchill
Author-Name: Yeti Nisha Madhoo
Author-X-Name-First: Yeti Nisha
Author-X-Name-Last: Madhoo
Author-Name: Shyam Nath
Author-X-Name-First: Shyam
Author-X-Name-Last: Nath
Title: Ethnic diversity and human capital development in India: A disaggregated analysis at the state and district levels
Abstract: 
 This study contributes to the development literature by providing a new perspective on understanding factors that influence human capital development in India. We examine the effects of ethnic, linguistic and religious diversity on various measures of human capital at the state and district levels. Based on indices of ethnic diversity calculated for 30 Indian States and 557 districts, we examine the direct effects of ethnic diversity on indicators such as infant mortality, education and health. Our findings suggest that, on average, ethnic diversity contributes to some elements of development. Specifically, we find evidence to support development-enhancing effects of diversity on education and health.
Journal: Applied Economics
Pages: 506-518
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646880
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646880
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:506-518




Template-Type: ReDIF-Article 1.0
Author-Name: Demetris Christodoulou
Author-X-Name-First: Demetris
Author-X-Name-Last: Christodoulou
Author-Name: Doron Samuell
Author-X-Name-First: Doron
Author-X-Name-Last: Samuell
Title: The adviser effect on insurance disclosures
Abstract: 
 An examination of personal and medical disclosures made by retail customers to a commercial life insurer reveals that customers screened for insurance with the assistance of a financial adviser considerably under-disclose by comparison to when screened by the insurer. The pattern of under-disclosure is consistent across all areas. We also find that adviser-screened customers are far more likely to be offered standard terms especially for smokers, whereas insurer-screened customers are more likely to be offered modified terms or be declined insurance. We argue that the adviser, who receives a commission when a contract is accepted, may be motivated to influence disclosures in order to increase the chance of an accepted contract in affordable terms and therefore maximize own returns. By doing so, the adviser exposes the customer to legal remedies whereby the insurance company may cancel the contract or refuse a claim. Our results support the findings of various enquiries that call for an end to commission-based sales.
Journal: Applied Economics
Pages: 519-527
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646883
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646883
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:519-527




Template-Type: ReDIF-Article 1.0
Author-Name: Oğuzhan Çepni
Author-X-Name-First: Oğuzhan
Author-X-Name-Last: Çepni
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: The role of real estate uncertainty in predicting US home sales growth: evidence from a quantiles-based Bayesian model averaging approach
Abstract: 
 This paper investigates the role of real estate-specific uncertainty in predicting the conditional distribution of US home sales growth over the monthly period of 1970:07 to 2017:12, based on Bayesian Model Averaging (BMA) to account for model uncertainty. After controlling for standard predictors of home sales (housing price, mortgage rate, personal disposable income, unemployment rate, building permits, and housing starts), and macroeconomic and financial uncertainties, our results from the quantile BMA (QBMA) model show that real estate uncertainty has predictive content for the lower and upper quantiles of the conditional distribution of home sales growth.
Journal: Applied Economics
Pages: 528-536
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1654082
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1654082
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:528-536




Template-Type: ReDIF-Article 1.0
Author-Name: Uwe Jirjahn
Author-X-Name-First: Uwe
Author-X-Name-Last: Jirjahn
Title: The adoption and termination of profit sharing for employees: does management’s attitude play a role?
Abstract: 
 Examinations on the determinants of profit sharing usually focus on objective firm characteristics. Using data from manufacturing firms in Germany, this study shows that managers’ subjective attitudes towards profit sharing also play an important role in the adoption and termination of this payment scheme. Positive management attitudes are associated with an increased likelihood of adopting profit sharing. While to some extent this entails failed experimentation, positive managerial attitudes also substantially contribute to a sustained use of profit sharing. The pattern of results holds even when controlling for a variety of objective firm characteristics.
Journal: Applied Economics
Pages: 108-127
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1311001
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311001
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:108-127




Template-Type: ReDIF-Article 1.0
Author-Name: Yau Man Ze-To Samuel
Author-X-Name-First: Yau Man Ze-To
Author-X-Name-Last: Samuel
Title: Option implied beta and option return
Abstract: 
 We study the information content of option-implied betas for future equity option returns, using data on the S&amp;P 500 index options and all of the component stock options. We find a significantly strong relation between option-implied betas and option returns cross-sectional. The paper presents evidence that call (put) option returns increase (decrease) with the option-implied betas of the underlying stock. A trading strategy of buying high (low) implied beta call (put) option portfolio and selling low (high) implied beta call (put) option portfolio generates a statistically and economically significant return. Our results are robustly persistent even after controlling for various cross-sectional effects and are not explained by the risk factors in asset pricing.
Journal: Applied Economics
Pages: 128-142
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313958
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313958
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:128-142




Template-Type: ReDIF-Article 1.0
Author-Name: Thibault Brodaty
Author-X-Name-First: Thibault
Author-X-Name-Last: Brodaty
Title: Is the ladder sticky? Measuring semi-parametrically state dependence in earnings mobility
Abstract: 
 Employing the U.S. data for the 1990’s, we disentangle state dependence from unobserved heterogeneity in earnings mobility. The fixed effects dynamic multinomial logit utilized to model earnings quintiles dynamics fits the data very well, much more so than the autocorrelated dynamic ordered probit. Unordered models should thus be preferred to study earnings mobility. State dependence is found to be significant. It has a protective (anti-fall) effect at the top of the distribution and a detrimental (anti-rise) effect at the bottom. Consequently, the difficulty of climbing the ladder is not exclusively a question of individual characteristics. Public policies could thus be implemented to improve information about individuals’ ability and job offers, and to design more efficient wage-setting institutions.
Journal: Applied Economics
Pages: 143-156
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1316478
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316478
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:143-156




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed M. Elnahas
Author-X-Name-First: Ahmed M.
Author-X-Name-Last: Elnahas
Author-Name: Pankaj K. Jain
Author-X-Name-First: Pankaj K.
Author-X-Name-Last: Jain
Author-Name: Thomas H. McInish
Author-X-Name-First: Thomas H.
Author-X-Name-Last: McInish
Title: Exploring the manipulation toolkit: the failure of Doral Financial Corporation
Abstract: 
 The 2015 bankruptcy of Doral Financial Corporation, once ‘the best’ U.S. bank according to U.S. Banker, is the largest since April 2010. The bankruptcy concludes years of management manipulation and efforts to recover. SEC investigation revealed fraud related to Doral’s valuation of interest only strips (IOs). We show that Doral management’s misconduct also includes reckless hiring, over investing, insiders trading, and opportunistic stock splits. Investigating the full range of Doral management’s misconduct reveals new tactics that managers use to pool with good firms and aids our understanding of the economic impact of managerial misconduct.
Journal: Applied Economics
Pages: 157-171
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319563
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319563
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:157-171




Template-Type: ReDIF-Article 1.0
Author-Name: Steven P. Clark
Author-X-Name-First: Steven P.
Author-X-Name-Last: Clark
Author-Name: T. Daniel Coggin
Author-X-Name-First: T. Daniel
Author-X-Name-Last: Coggin
Title: A study of fractionally integrated time series using descriptive methods
Abstract: 
 We demonstrate the use of some descriptive methods for nonstationary time series to better understand the sample path behaviours of fractionally integrated processes for a range of different fractional orders of integration. We are particularly interested in better understanding the behaviours of $$I(d)$$I(d)
 series when $$d \in [1/2,1)$$d∈[1/2,1)
. In fact, we will point out that there is considerable disagreement in the literature when it comes to describing such processes, and we show that descriptive methods can be useful tools for better understanding their sample path properties. We also present an empirical example to compare conclusions from some of the descriptive methods and inference from two state-of-the-art estimators for fractional orders of integration.
Journal: Applied Economics
Pages: 172-186
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321839
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321839
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:172-186




Template-Type: ReDIF-Article 1.0
Author-Name: Oliviero A. Carboni
Author-X-Name-First: Oliviero A.
Author-X-Name-Last: Carboni
Author-Name: Giuseppe Medda
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Medda
Title: R&amp;D, export and investment decision: evidence from European firms
Abstract: 
 This article provides an empirical investigation of the mechanism through which R&amp;D influences export and tangible investment decisions. The analysis is based on a large representative and cross-country comparative sample of manufacturing firms across seven European countries. The novelty of this work lies in the three aspects. First, we expand the results on the R&amp;D–export and R&amp;D–investment relationships to a wide sample of cross-European firms. This differentiates from previous works based on single-country samples. Second, to the best of our knowledge, this study is the first in years which assess empirically the relationship between R&amp;D and tangible investment at the micro level. Third, we control for endogeneity of R&amp;D and simultaneity in firms’ decision whether to export and carry out tangible investment. The results of the analysis suggest that R&amp;D positively affects export propensity and tangible investment. The results also reveal that neglecting endogeneity and simultaneity issues leads to underestimate the effect of R&amp;D to both export and investment propensities.
Journal: Applied Economics
Pages: 187-201
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1332747
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332747
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:187-201




Template-Type: ReDIF-Article 1.0
Author-Name: Julien Jacqmin
Author-X-Name-First: Julien
Author-X-Name-Last: Jacqmin
Title: The role of market-oriented institutions in the deployment of renewable energies: evidences from Europe
Abstract: 
 Focusing on European countries, this article investigates the link between market-oriented institutions, as measured by the Economic Freedom Index, and the production of energy from renewable sources. A dynamic panel approach shows that this correlation is positive and significant while the subcomponents of the Economic Freedom Index reveal that not all market-oriented institutions have a similar impact. Indeed, long-term price stability and freedom to trade boost the reliance on renewable energies whereas the importance given to markets rather than governments has no significant impact.
Journal: Applied Economics
Pages: 202-215
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1332749
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332749
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:202-215




Template-Type: ReDIF-Article 1.0
Author-Name: Dina Tasneem
Author-X-Name-First: Dina
Author-X-Name-Last: Tasneem
Author-Name: Jim Engle-Warnick
Author-X-Name-First: Jim
Author-X-Name-Last: Engle-Warnick
Author-Name: Hassan Benchekroun
Author-X-Name-First: Hassan
Author-X-Name-Last: Benchekroun
Title: Sustainable management of renewable resources: an experimental investigation in continuous time
Abstract: 
 This study addresses one of the most basic questions in renewable resource management: the ability of economic agents to exploit a renewable resource in an efficient and sustainable manner. In a laboratory experiment, subjects are presented with renewable resource extraction problems, where optimal management will lead to a stable steady state. A test of sustainability of the extraction practices shows that extraction behaviour results in steady states only 56% of the time. The mode of the steady state distribution coincides with the optimal steady state extraction. The trade-off between accruing a higher payoff in the present and sustaining the resource for future exploitation leads to suboptimal behaviours such as initial overextraction of the resource compared to the optimal extraction policy, costly downward adjustment of the extraction later in time, and settling down for lower long-run resource and extraction. The suboptimal behaviours lead to 17% loss in efficiency on average in terms of the accumulated payoff. We further look at extraction behaviour in terms of the degree of impatience it projects and find, based on their extraction decisions, that most of our subjects seem more impatient in managing their resource than is justified by the decision-making problem presented to them.
Journal: Applied Economics
Pages: 3804-3833
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584370
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3804-3833




Template-Type: ReDIF-Article 1.0
Author-Name: Noor Ulain Rizvi
Author-X-Name-First: Noor Ulain
Author-X-Name-Last: Rizvi
Author-Name: Smita Kashiramka
Author-X-Name-First: Smita
Author-X-Name-Last: Kashiramka
Author-Name: Shveta Singh
Author-X-Name-First: Shveta
Author-X-Name-Last: Singh
Author-Name:  Sushil
Author-X-Name-First: 
Author-X-Name-Last: Sushil
Title: A hierarchical model of the determinants of non-performing assets in banks: an ISM and MICMAC approach
Abstract: 
 The banking systems of emerging economies in general and India in particular are facing sustained impairment due to mounting non-performing assets (NPAs). In the absence of stringent policies and their implementation, the results will be detrimental and may eventually lead to an economic crisis. Thus, it is imperative to unearth the causal factors and mitigate the risks involved with rising NPAs. The study attempts to identify the determinants of NPAs from the existing literature and subsequently, explore the interlinkages between the identified factors. A model of these factors is developed using Interpretive Structural Modeling (ISM) and MICMAC approach. Key managerial insights were obtained by the suggested model, specific to the Indian context. The hierarchical model provides a clearer perspective about the relationship between the factors and suggests that economic conditions and political factors are the key drivers which impact the ownership pattern and adherence to the regulatory framework; these further impact the internal factors related to the banks and borrowers’ capacity to repay. The study will act as a scaffolding for policymakers and bankers. Based on these findings, better instruments and mechanisms for recovery/management of NPAs can be put in place.
Journal: Applied Economics
Pages: 3834-3854
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584377
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584377
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3834-3854




Template-Type: ReDIF-Article 1.0
Author-Name: Yimiao Gu
Author-X-Name-First: Yimiao
Author-X-Name-Last: Gu
Author-Name: Zhenxi Chen
Author-X-Name-First: Zhenxi
Author-X-Name-Last: Chen
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Title: Baltic Dry Index and iron ore spot market: dynamics and interactions
Abstract: 
 Baltic Dry Index (BDI) is often included in the iron ore spot price. Iron ore market experienced a transition in pricing mechanism from the annual negotiated price to the one based on spot market price in 2008/2009. This paper investigates the dynamics of and the interactions between BDI and iron ore spot price in the regime of the new pricing mechanism. In addition to controlled variables, we find significant spillover interactions between BDI and the iron ore market. We also detect mean-reversion movement in the iron ore market, signalling certain inefficiency in the market pricing.
Journal: Applied Economics
Pages: 3855-3863
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584384
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584384
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3855-3863




Template-Type: ReDIF-Article 1.0
Author-Name: Lifang Hu
Author-X-Name-First: Lifang
Author-X-Name-Last: Hu
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Author-Name: Yinchu Zeng
Author-X-Name-First: Yinchu
Author-X-Name-Last: Zeng
Title: The impact of credit constraints on the performance of Chinese agricultural wholesalers
Abstract: 
 This article evaluates the impact of credit constraints on the performance of Chinese agricultural wholesalers. We estimate a stochastic frontier function using transaction and credit data of agricultural wholesalers from across China to estimate the efficiency and productivity impacts of credit constraints on sales of affected agricultural wholesalers. Empirical results show that micro- and smaller wholesalers are disproportionally impacted by credit constraints and that eliminating these constraints would increase the sales of affected agricultural wholesalers by approximately 15%. Thus, policies aimed at providing credit access for these wholesalers would significantly boost the performance of smaller agricultural wholesalers while improving the overall performance of the Chinese food supply chain without requiring additional non-credit inputs.
Journal: Applied Economics
Pages: 3864-3875
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584385
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584385
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3864-3875




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Bunduchi
Author-X-Name-First: Elena
Author-X-Name-Last: Bunduchi
Author-Name: Valentina Vasile
Author-X-Name-First: Valentina
Author-X-Name-Last: Vasile
Author-Name: Calin-Adrian Comes
Author-X-Name-First: Calin-Adrian
Author-X-Name-Last: Comes
Author-Name: Daniel Stefan
Author-X-Name-First: Daniel
Author-X-Name-Last: Stefan
Title: Macroeconomic determinants of remittances: evidence from Romania
Abstract: 
 Given the globalization of the labour market and the promotion of free movement for work, young people are looking for employment opportunities from at least two perspectives – professional careers and socio-economic benefits from employment. In developing countries, such as Romania, the labour market is less attractive, which has led to profound, numerical and structural imbalances, due to external mobility for work. Both new generations of graduates and young people aged up to 40 years, decide to work abroad as a more beneficial individual solution, i.e. remittances. The purpose of this paper is to examine the macroeconomic determinants of remittances to Romania, in order to substantiate public policies on diaspora, to adjust employment policy on the national labour market by promoting incentives to create decent, youth-friendly jobs. Using panel data model we selected several variables with potential influence on remittances level. The results demonstrate that traditional influence’s factors as distance, migration routes diaspora concentration or unemployment rate are, at present, less important than wage gap or tax rate at least for developing origin countries.
Journal: Applied Economics
Pages: 3876-3889
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584386
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584386
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3876-3889




Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Yu Li
Author-X-Name-First: Chen-Yu
Author-X-Name-Last: Li
Author-Name: An-Chi Lai
Author-X-Name-First: An-Chi
Author-X-Name-Last: Lai
Author-Name: Zhan-Ao Wang
Author-X-Name-First: Zhan-Ao
Author-X-Name-Last: Wang
Author-Name: Yi-Chung Hsu
Author-X-Name-First: Yi-Chung
Author-X-Name-Last: Hsu
Title: The preliminary effectiveness of bilateral trade in China’s belt and road initiatives: a structural break approach
Abstract: 
 This study aims to investigate the initial effectiveness of the international trade in the Belt and Road Initiatives (BRI), which encompasses 64 countries along the Belt and Road as part of China’s political and economic network for the years beginning with 2013. To determine the initial effectiveness in the international trade associated with the BRI, we adopt the traditional augmented Dickey-Fuller (ADF) test and the one-time structural breakpoint in the bilateral trade data between China and these 64 countries along the Belt and Road from 2010 to 2017. The results show that, for 46 (72%) countries, the trade flows with unit roots and the shocks of trade flows appear to occur more frequently following the announcements of the initiatives among these countries. As for the remaining countries, the trade flows exhibit stationary time series over the 2010–2017 period. Both the 21st century maritime silk road and the silk road economic belt initiatives have affected the bilateral trade volumes of these countries along with the belt and road initiatives, and bilateral commerce mechanisms are able to serve as a stabilizing force in accelerating the economic integration of countries along the route.
Journal: Applied Economics
Pages: 3890-3905
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584387
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584387
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3890-3905




Template-Type: ReDIF-Article 1.0
Author-Name: Haitao Zheng
Author-X-Name-First: Haitao
Author-X-Name-Last: Zheng
Author-Name: Jie Hu
Author-X-Name-First: Jie
Author-X-Name-Last: Hu
Author-Name: Shanshan Wang
Author-X-Name-First: Shanshan
Author-X-Name-Last: Wang
Author-Name: Huiwen Wang
Author-X-Name-First: Huiwen
Author-X-Name-Last: Wang
Title: Examining the influencing factors of CO2 emissions at city level via panel quantile regression: evidence from 102 Chinese cities
Abstract: 
 Ascertaining the influencing factors of carbon dioxide emissions in Chinese cities is an important issue for policy-makers. This paper investigates the effect of several determinants on carbon emissions per capita in Chinese cities. Non-normally distributed and heterogeneous features of carbon emissions per capita in Chinese cities are considerably important. The empirical results demonstrate that GDP per capita has an increasingly positive impact on carbon emissions per capita due to the growth in household consumption. Urbanization has a slightly decreasing positive effect on carbon emissions per capita with a quantile increase resulting from continuous highway construction. Industrialization has a decreasing positive effect with carbon emission per capita quantile increases because of increasing energy efficiency and lower costs related to carbon reductions. The population has a decreasing negative effect on carbon emissions because of people’s increasing demand for environmental safety. The distributions of emissions per capita conditional on the 10th and 90th quantiles of independent variables also vary considerably. Specific policy implications are provided based on these results.
Journal: Applied Economics
Pages: 3906-3919
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584659
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584659
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3906-3919




Template-Type: ReDIF-Article 1.0
Author-Name: Katharina Dengler
Author-X-Name-First: Katharina
Author-X-Name-Last: Dengler
Title: Effectiveness of sequences of classroom training for welfare recipients: what works best in West Germany?
Abstract: 
 Sequences of active labour market programmes (ALMPs) may be part of an intensified activation strategy targeting hard-to-place unemployed individuals. Such sequences are very common among welfare recipients in Germany, but most studies only evaluate either single ALMPs or unemployed individuals&#x2019; first ALMP. I analyse the effects of different sequences of classroom training for West German men and women on different labour market outcomes. Using rich administrative data and a dynamic causal model, I can control for dynamic selection problems that occur during a sequence. The results show that two classroom trainings are more effective than two periods of welfare receipt in helping welfare recipients find regular employment, especially among West German women. Moreover, immediately assigning individuals to classroom training is more effective than waiting and assigning them to classroom training in the second period. However, in some cases, avoiding participation in multiple programmes is preferable.Abbreviations: ALMP, active labour market programme; CIA, Conditional Independence Assumption; CSR, Common Support Requirement; DATET, dynamic average treatment effect on the treated; IEB, Integrated Employment Biographies; IPW, inverse probability weighting; LHG, UBII-Receipt History (Leistungshistorik Grundsicherung); MSB, mean standardized absolute bias; SUTVA, Stable Unit Treatment Value Assumption; UBII, unemployment benefit II; UBI, unemployment benefit I; WDCIA, Weak Dynamic Conditional Independence Assumption
Journal: Applied Economics
Pages: 1-46
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1489110
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489110
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:1-46




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Alessandra Antonelli
Author-X-Name-First: Maria Alessandra
Author-X-Name-Last: Antonelli
Author-Name: Valeria De Bonis
Author-X-Name-First: Valeria
Author-X-Name-Last: De Bonis
Title: The efficiency of social public expenditure in European countries: a two-stage analysis
Abstract: 
 Do European countries differ in the efficiency of their welfare policies? And which factors can account for such variability? To address these questions, we perform a two-stage efficiency analysis. First, based on a composite output indicator for social protection expenditure, we measure efficiency by means of the Free Disposable Hull and Data Envelopment Analysis techniques. Second, we perform an econometric analysis to identify the factors that can be associated to cross-country differences. We find that countries scoring higher efficiency have higher education and GDP levels, a smaller population size, a lower degree of selectivity of their welfare systems and a lower corruption level.
Journal: Applied Economics
Pages: 47-60
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1489522
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489522
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:47-60




Template-Type: ReDIF-Article 1.0
Author-Name: Asresu Yitayew
Author-X-Name-First: Asresu
Author-X-Name-Last: Yitayew
Author-Name: Yigezu A. Yigezu
Author-X-Name-First: Yigezu A.
Author-X-Name-Last: Yigezu
Author-Name: Girma T. Kassie
Author-X-Name-First: Girma T.
Author-X-Name-Last: Kassie
Author-Name: Tilaye T. Deneke
Author-X-Name-First: Tilaye T.
Author-X-Name-Last: Deneke
Author-Name: Aynalem Haile
Author-X-Name-First: Aynalem
Author-X-Name-Last: Haile
Author-Name: Halima Hassen
Author-X-Name-First: Halima
Author-X-Name-Last: Hassen
Author-Name: Barbara Rischkowsky
Author-X-Name-First: Barbara
Author-X-Name-Last: Rischkowsky
Title: Identification of strategies to improve goat marketing in the lowlands of Ethiopia: a hedonic price analysis
Abstract: 
 This article aims at identifying factors that determine market prices of goats and analyse potential mechanisms by which smallholder goat producers could maximize their benefits. Data on 357 farm households and 2103 goat transactions were collected in three major goat markets in the lowlands of Ethiopia. Hedonic price models adjusted for heteroscedasticity were employed to analyse the observed price data. Model results showed the relative importance of different factors in determining goat prices. Animal attributes including age, sex, live weight, body condition and presence of horn as well as types of buyer and market outlet targeted and time of selling were found to be important. Particularly, goats marketed during festive periods where demand for meat increases (e.g. Ethiopian New Year) command higher prices. These results imply that interventions such as systematic selection schemes targeting traits demanded by the market, improved linkages to markets, easy access to market information systems and creating conducive environment including incentive mechanisms can enhance smallholder farmers&#x2019; and pastoralists&#x2019; ability to take advantage of seasonal and spatial price changes and become market responsive with effective marketing strategies. Such changes can be potent in improving the livelihoods of smallholder farmers and pastoralists.
Journal: Applied Economics
Pages: 61-75
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1490693
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490693
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:61-75




Template-Type: ReDIF-Article 1.0
Author-Name: Ant&#xF3;nio S. Ribeiro
Author-X-Name-First: Ant&#xF3;nio S.
Author-X-Name-Last: Ribeiro
Author-Name: Francisco Lima
Author-X-Name-First: Francisco
Author-X-Name-Last: Lima
Title: Football players&#x2019; career and wage profiles
Abstract: 
 The objective of this article is to look over football players&#x2019; career path, from lower leagues to the first league, and the associated wage profile. The information comes from a Portuguese longitudinal matched employer&#x2013;employee data set defining several career events according to players&#x2019; movement across football clubs and across professional and semi-professional leagues. Our identifying strategy relies on coach changes to reduce the potential bias resulting from players&#x2019; moves between clubs. The estimated first-difference wage equations indicate that players can expect a wage premium when they get transferred to new clubs in higher leagues or a wage penalty when moving to lower leagues. Players who stay in the same club after the club being relegated can also expect a wage penalty.
Journal: Applied Economics
Pages: 76-87
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494375
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494375
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:76-87




Template-Type: ReDIF-Article 1.0
Author-Name: Feriha Ibriyamova
Author-X-Name-First: Feriha
Author-X-Name-Last: Ibriyamova
Author-Name: Samuel Kogan
Author-X-Name-First: Samuel
Author-X-Name-Last: Kogan
Author-Name: Galla Salganik-Shoshan
Author-X-Name-First: Galla
Author-X-Name-Last: Salganik-Shoshan
Author-Name: David Stolin
Author-X-Name-First: David
Author-X-Name-Last: Stolin
Title: Predicting stock return correlations with brief company descriptions
Abstract: 
 A series of influential papers by Hoberg and Phillips measure the similarity of pairs of companies based on a textual analysis of their business descriptions and show these measures to be useful in a variety of research contexts in finance. Hoberg and Phillips derive the similarity measures from a comparison of word lists extracted from extensive business descriptions contained in US companies&#x2019; electronic 10-K filings. Unfortunately, this method is of little use in non-US settings, where lengthy English-language company self-descriptions are not available on a consistent basis. Instead, we use semantic fingerprinting to extract such similarity measures from much shorter but globally available third-party company descriptions. We show that our approach significantly predicts stock return correlations even after controlling for past correlations and for membership in the same industry. Remarkably, company similarity measures based on brief third-party company descriptions predict stock return correlations significantly better than those based on much longer company self-descriptions.
Journal: Applied Economics
Pages: 88-102
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494377
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494377
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:88-102




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Schleich
Author-X-Name-First: Joachim
Author-X-Name-Last: Schleich
Author-Name: Corinne Faure
Author-X-Name-First: Corinne
Author-X-Name-Last: Faure
Author-Name: Xavier Gassmann
Author-X-Name-First: Xavier
Author-X-Name-Last: Gassmann
Title: Household internal and external electricity contract switching in EU countries
Abstract: 
 Using a representative sample of more than 13,000 households from eight countries in the European Union (EU), this article empirically studies the factors related to household electricity contract switching by distinguishing between internal switchers (households that switched contracts but stayed with the same supplier) from external switchers (households that switched to a new supplier). The econometric analysis includes individual preferences, household structural factors and socio-demographic characteristics, as well as electricity market characteristics. The study explicitly explores the role of risk and time preferences on switching behaviours, with risk and time preferences elicited through incentivized experiments as well as self-assessment scales. The main results suggest that internal and external switching are not related to the same factors, that risk and time preferences affect switching behaviours, and that renters are less likely to switch than homeowners; further, electricity market characteristics are found to affect household electricity contract switching.
Journal: Applied Economics
Pages: 103-116
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494379
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494379
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:103-116




Template-Type: ReDIF-Article 1.0
Author-Name: Vera Gurtovaya
Author-X-Name-First: Vera
Author-X-Name-Last: Gurtovaya
Author-Name: Sergio Nistic&#xF2;
Author-X-Name-First: Sergio
Author-X-Name-Last: Nistic&#xF2;
Title: Does the NDC scheme mimic the French point system?
Abstract: 
 After the implementation of the notional defined contribution (NDC) pension scheme in Italy and Sweden in the &#x2018;90s, some authors argued that its design merely replicates the functioning of the points-based pension schemes already in place in France and Germany. The aim of this article is to assess the soundness of this proposition by comparing the properties of the French points-based pension system (FPS) with those of the NDC scheme, which refrains from intra-cohort redistributions by ensuring substantial uniformity of individual rates of return. In order to assess to what extent the FPS also avoids intra-cohort redistributions, we run several simulations for different career patterns. The results of the simulations show that the discretionary adjustments embedded in the FPS are responsible for random, regressive redistributions. Finally, the article identifies the theoretical &#x2018;equivalence condition&#x2019; showing that full correspondence between the two schemes would require replacing the discretionary mechanisms of the FPS with an automatic adjustment of point values.
Journal: Applied Economics
Pages: 117-130
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494805
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494805
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:117-130




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday
Author-X-Name-First: Hakan
Author-X-Name-Last: Yilmazkuday
Title: Geographical dispersion of consumer search behaviour
Abstract: 
 This article investigates whether consumer search behaviour differs across zip codes within the U.S. As an application, daily gasoline price data covering virtually all gas stations within the U.S. are employed to estimate the distribution of search costs in each zip code. The results show that there are significant differences across zip codes regarding the expected number of searches achieved before consumers purchase gasoline. In order to have a systematic explanation, such differences are further connected to geographic, demographic, and economic conditions of the zip codes in a secondary analysis. The corresponding results imply several strategies for gas stations in order to maximize profits/markups; suggestions follow for policy makers and regulators to reduce redistributive effects of information barriers across locations.
Journal: Applied Economics
Pages: 5740-5752
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340575
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340575
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5740-5752




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner
Author-X-Name-First: Joachim
Author-X-Name-Last: Wagner
Title: Intra-good trade in Germany: a first look at the evidence
Abstract: 
 This article contributes to the literature by using newly released comprehensive transaction-level data on all exports and imports to document facts about the amount of intra-good trade – the simultaneous export and import of identical goods by one firm – in Germany. Combined data for trade transactions and for characteristics of a representative large sample of trading firms are then used to report differences between firms that export and import different goods only (inter-good traders) and firms that engage in the simultaneous export and import of identical goods (intra-good traders). We find that the share of intra-good trade in total trade was some 17% in Germany in 2012. Intra-good trade matters. This share differs widely between broadly defined groups of goods and between industries. Controlling for detailed industry affiliation, intra-good traders differ significantly from inter-good traders – they are larger, more human capital intensive, more productive, have a higher R&amp;D intensity and are more profitable. The data, however, are not rich enough to reveal the direction of causality between intra-good trade and firm performance and to investigate empirically the reasons why some firms engage in intra-good trade.
Journal: Applied Economics
Pages: 5753-5761
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340576
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340576
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5753-5761




Template-Type: ReDIF-Article 1.0
Author-Name: Machiel van Dijk
Author-X-Name-First: Machiel
Author-X-Name-Last: van Dijk
Title: Estimating the weight of opportunity costs in housing consumption
Abstract: 
 Behavioural economics suggests that people tend to neglect or underweight opportunity costs. However, strong empirical evidence for the size of the underweighting appears to be largely absent from the literature. What are the weights people attach to opportunity costs relative to out-of-pocket costs? In this article, I estimate the weight of opportunity costs in probably the largest economic decision that households make: buying a house. I show that homeowners attach approximately twice as much weight to out-of-pocket costs of their housing consumption than to the opportunity costs associated with this.
Journal: Applied Economics
Pages: 5762-5770
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340579
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340579
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5762-5770




Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Miyakoshi
Author-Name: Laixun Zhao
Author-X-Name-First: Laixun
Author-X-Name-Last: Zhao
Title: Multinational public goods provision under multilateral income transfers and productivity differences
Abstract: 
 This article examines multinational public goods provision under multilateral income transfers and productivity differences across countries. Under a planner who uses linear approximation for utility maximization, we show that (1) a country is an income receiver if it has a higher productivity than the average in producing public goods, enabling it to provide more public goods; (2) the amount of transfers can be pinned down for all countries with an adjustment cost; (3) each country obtains an identical utility increment; and (4) the country with the lowest adjustment cost is the best candidate for the planner country. All results are derived based on well-known information regarding the cost of producing the public goods and income levels.
Journal: Applied Economics
Pages: 5771-5779
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340580
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340580
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5771-5779




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Acosta-Ballesteros
Author-X-Name-First: Juan
Author-X-Name-Last: Acosta-Ballesteros
Author-Name: M. Pilar Osorno-Del Rosal
Author-X-Name-First: M. Pilar
Author-X-Name-Last: Osorno-Del Rosal
Author-Name: Olga María Rodríguez-Rodríguez
Author-X-Name-First: Olga María
Author-X-Name-Last: Rodríguez-Rodríguez
Title: Gender differences in the quality of the school-to-work transition in Spain
Abstract: 
 This article analyses to what extent gender affects the quality of the school-to-work transition in Spain, paying special attention to workers’ educational attainment. We estimate a four-equation system that explains the main obstacles young people face in their insertion process: part-time work, overeducation, fixed-term contracts and long unemployment spells; the model also considers the impact of the latter variable on the other three. Moreover, a synthetic indicator of transition quality based on the estimation of this model is developed. We conclude that men experience a better insertion process than women at every level of education (except for higher vocational training), although the gender gap is greater for long-cycle university programmes. Furthermore, when field of study is considered, men from most specializations enjoy a smoother transition than their female counterparts; nevertheless, women have the advantage in some female-dominated fields. A further analysis of gender differences reveals that they are due to the fact of being male or female to a great extent. The results also highlight that school-leavers from work-oriented programmes and those specialized in fields that provide them with more specific skills are more likely to succeed in the transition.
Journal: Applied Economics
Pages: 5780-5791
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343445
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343445
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5780-5791




Template-Type: ReDIF-Article 1.0
Author-Name: Helga Kristjánsdóttir
Author-X-Name-First: Helga
Author-X-Name-Last: Kristjánsdóttir
Author-Name: Þórhallur Örn Guðlaugsson
Author-X-Name-First: Þórhallur Örn
Author-X-Name-Last: Guðlaugsson
Author-Name: Svala Guðmundsdóttir
Author-X-Name-First: Svala
Author-X-Name-Last: Guðmundsdóttir
Author-Name: Gylfi Dalmann Aðalsteinsson
Author-X-Name-First: Gylfi Dalmann
Author-X-Name-Last: Aðalsteinsson
Title: Hofstede national culture and international trade
Abstract: 
 The objective is to analyse if international trade is affected by different national cultures. International trade of 21 World Bank listed countries is estimated as function of the Hofstede cultural dimensions, gross domestic product and population. First, we estimate the combined Hofstede culture dimensions and find significant positive effects on countries’ international trade. Secondly, we decompose the Hofstede culture dimensions and estimate the effects of each separate dimension on international trade, finding only the MAS dimension to significantly affect international trade. We estimate additional equation versions to account for occasional trade restrictions with no international trade, as well as estimating how international trade varies between years. These additional estimations further support our original findings, and therefore act as robustness check.
Journal: Applied Economics
Pages: 5792-5801
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343446
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343446
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5792-5801




Template-Type: ReDIF-Article 1.0
Author-Name: Grazia Cecere
Author-X-Name-First: Grazia
Author-X-Name-Last: Cecere
Author-Name: Fabrice Le Guel
Author-X-Name-First: Fabrice
Author-X-Name-Last: Le Guel
Author-Name: Fabrice Rochelandet
Author-X-Name-First: Fabrice
Author-X-Name-Last: Rochelandet
Title: Crowdfunding and social influence: an empirical investigation
Abstract: 
 The literature so far provides no in-depth investigation of the determinants of decisions to contribute to crowdfunding platforms. The present article draws on work measuring the decisions and prosocial behaviours of individuals in relation to public goods, and uses survey data on crowdfunding behaviour. We surveyed an original sample of individuals in France to explore individual decisions and amounts of funding chosen to support a creative project. We show that in non-equity crowdfunding contributing money is associated with altruism. Our findings suggest that the ‘warm glow’ effect influences the level of the contribution; we show also those monetary incentives could ‘crowd out’ the decisions to contribute of crowdfunders. Our study has some implications for business strategy since understanding why people contribute adds to our knowledge about the incentives that might encourage them to increase their contributions, and allows predictions about how changes to how crowdfunding platforms are managed might affect individual incentives to give.
Journal: Applied Economics
Pages: 5802-5813
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343450
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343450
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5802-5813




Template-Type: ReDIF-Article 1.0
Author-Name: Ergun Dogan
Author-X-Name-First: Ergun
Author-X-Name-Last: Dogan
Author-Name: M. Qamarul Islam
Author-X-Name-First: M. Qamarul
Author-X-Name-Last: Islam
Author-Name: Mehmet Yazici
Author-X-Name-First: Mehmet
Author-X-Name-Last: Yazici
Title: Real exchange rates and job flows: evidence from Turkey
Abstract: 
 This study investigates the effects of the real exchange rate on job flows in Turkish manufacturing industries between 2006 and 2015 using data at the four-digit NACE Revision 2 level. Using dynamic panel data models, we find that a real appreciation increases gross and net job creation rates, and that the effect of appreciation is magnified as the exposure to international competitiveness of industries increases. We think that this is because Turkish manufacturing firms import a greater share of their inputs compared to the firms in developed countries. Hence, an appreciation creates more jobs because lower imported input costs enable firms to outcompete foreign producers.
Journal: Applied Economics
Pages: 4489-4499
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458190
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458190
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4489-4499




Template-Type: ReDIF-Article 1.0
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Román Ferrer
Author-X-Name-First: Román
Author-X-Name-Last: Ferrer
Author-Name: Francisco Jareño
Author-X-Name-First: Francisco
Author-X-Name-Last: Jareño
Title: Does Shariah compliance make interest rate sensitivity of Islamic equities lower? An industry level analysis under different market states
Abstract: 
 This paper examines the sensitivity of the Dow Jones Islamic market index and its corresponding industry equity indices to changes in the level, slope and curvature of the U.S. term structure of interest rates over the period 1996–2015 using the quantile regression approach. The empirical results reveal that the Islamic stock market has a considerable negative exposure to interest rate risk, although a declining time pattern of interest rate sensitivity is observed. The unexpected changes in the level factor of the U.S. yield curve, closely linked to long-term interest rates, are identified as the most important interest rate factor in explaining the variability of Islamic equity returns. Furthermore, the interest rate exposure tends to be stronger during extreme bearish conditions in the stock market, possibly due to the greater pessimism and risk aversion under these market circumstances. It is also shown that Islamic equities are not different from their mainstream counterparts in terms of interest rate sensitivity, indicating that the Islamic stock market does not provide a cushion against interest rate risk.
Journal: Applied Economics
Pages: 4500-4521
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458191
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458191
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4500-4521




Template-Type: ReDIF-Article 1.0
Author-Name: Hiroyuki Aman
Author-X-Name-First: Hiroyuki
Author-X-Name-Last: Aman
Author-Name: Norihiro Kasuga
Author-X-Name-First: Norihiro
Author-X-Name-Last: Kasuga
Author-Name: Hiroshi Moriyasu
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Moriyasu
Title: Mass media effects on trading activities: television broadcasting evidence from Japan
Abstract: 
 This study examines how information broadcasting through television (TV) media influences stock market activities. Consistent with the effect of TV information to attract investor attention, we find that increased information flow through TV is significantly associated with greater trading volume and larger price change. For information type, hard news from business-oriented programmes and earnings-related news strongly contributes to the attention effect, while the effect of soft news is weaker. Bid–ask spread widens for more TV information flows, suggesting that new information arrival in the market expands information asymmetry. Finally, the impact of TV is more influential for stocks with more individual shareholders than those with institutional shareholders.
Journal: Applied Economics
Pages: 4522-4539
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458192
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458192
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4522-4539




Template-Type: ReDIF-Article 1.0
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Author-Name: María del Carmen Ramos-Herrera
Author-X-Name-First: María del Carmen
Author-X-Name-Last: Ramos-Herrera
Title: Inflation, real economic growth and unemployment expectations: an empirical analysis based on the ECB survey of professional forecasters
Abstract: 
 Expectations are at the centre of modern macroeconomic theory and policymakers. In this article, we examine the predictive ability and the consistency properties of macroeconomic expectations using data of the European Central Bank (ECB) Survey of Professional Forecasters (SPF). In particular, we provide evidence on the properties of forecasts for three key macroeconomic variables: the inflation rate, the growth rate of real gross domestic product and the unemployment rate.
Journal: Applied Economics
Pages: 4540-4555
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458193
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458193
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4540-4555




Template-Type: ReDIF-Article 1.0
Author-Name: Sangkon Park
Author-X-Name-First: Sangkon
Author-X-Name-Last: Park
Author-Name: Cheolsung Park
Author-X-Name-First: Cheolsung
Author-X-Name-Last: Park
Author-Name: Changhui Kang
Author-X-Name-First: Changhui
Author-X-Name-Last: Kang
Title: Effects of a holiday trip on health and quality of life: evidence from a natural experiment in South Korea
Abstract: 
 We examine whether having a holiday trip affects an individual’s well-being, namely quality of life, health status, stress level and health behaviours. We use the two-stage estimation method to control for endogeneity of a travel experience, exploiting a natural experiment of distributing Travel Vouchers at random among qualified applicants in South Korea in 2012. We find that, for applicants whose decision to travel is influenced by receiving a voucher, a travel experience has no significant effects on the traveller’s well-being measured 3–12 months later. We also find that the OLS estimates overstate benefits of a travel.
Journal: Applied Economics
Pages: 4556-4569
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458194
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458194
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4556-4569




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyong Dai
Author-X-Name-First: Xiaoyong
Author-X-Name-Last: Dai
Author-Name: Liwei Cheng
Author-X-Name-First: Liwei
Author-X-Name-Last: Cheng
Title: The impact of product innovation on firm-level markup and productivity: evidence from China
Abstract: 
 This article empirically evaluates the impact of product innovation on firms’ markup and productivity. Based on a large sample of Chinese manufacturing firms, we estimate firm-level markup using the wedge between output elasticities of intermediate input and its cost share in total revenue. Firm productivity is measured as revenue productivity and adjusted with the estimated markup. The results suggest that product innovation increases firm-level markup and revenue productivity. However, the effect of product innovation on the adjusted productivity is mostly negative or insignificant. The observed relationships also vary in response to market structures. Our results indicate that the positive impact of product innovation on revenue productivity is mainly driven by price-cost markup changes rather than physical productivity improvements. Our study suggests the widely observed positive relationship between product innovation and revenue productivity should be interpreted with caution.
Journal: Applied Economics
Pages: 4570-4581
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458195
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458195
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4570-4581




Template-Type: ReDIF-Article 1.0
Author-Name: Jana Hilsenroth
Author-X-Name-First: Jana
Author-X-Name-Last: Hilsenroth
Author-Name: Sherry L. Larkin
Author-X-Name-First: Sherry L.
Author-X-Name-Last: Larkin
Author-Name: Thomas K. Frazer
Author-X-Name-First: Thomas K.
Author-X-Name-Last: Frazer
Title: The price of pretty: characteristics of black Tahitian pearls and their implicit values
Abstract: 
 French Polynesia’s economy is largely dependent on the black pearl industry and associated export revenues. Accordingly, there is a need to understand fully the factors that influence quality and price of pearls – and threats to future sustainability. Focus, thus far, has been on production practices that affect pearl characteristics and quality. Although there is a generally accepted hierarchy in the characteristics of black pearls that determine quality and price, the contributory value of specific characteristics and their interdependence has not been assessed. We used information from two retailers that supply distinct markets to estimate the implicit value of black pearl characteristics, i.e. grade, shape and size. Calculated premiums and discounts revealed key similarities between retailers including that a more preferred shape demanded larger premiums than an improved grade. Results of this analysis will help direct research aimed at modifying production methods to increase the yield of higher value pearls. This is especially important given that climate change will, in fact, affect many environmental parameters that influence pearl quality. If ignored, such changes have the potential to negatively impact the quality of produced pearls with profound socio-economic consequences.
Journal: Applied Economics
Pages: 4582-4591
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458196
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458196
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4582-4591




Template-Type: ReDIF-Article 1.0
Author-Name: Theodoros V. Stamatopoulos
Author-X-Name-First: Theodoros V.
Author-X-Name-Last: Stamatopoulos
Author-Name: Stavros E. Arvanitis
Author-X-Name-First: Stavros E.
Author-X-Name-Last: Arvanitis
Author-Name: Dimitris M. Terzakis
Author-X-Name-First: Dimitris M.
Author-X-Name-Last: Terzakis
Title: The risk of the sovereign debt default: the Eurozone crisis 2008–2013
Abstract: 
 We investigate the relationship of the market pricing of sovereign risk to default, through credit default swap (CDS) spreads for 16 Eurozone countries during 2008q1–2013q3. We take into account, through appropriate non-linear generalized method of moments (GMM) estimations the endogeneity problem. We focus on ‘fiscal space’ (DEBT or FISCAL), and the downgrade announcements (DOWN). We find DEBT (FISCAL) to have significant (insignificant) effects on the CDS concave function, as well as, DOWN in a linear one. It has also been confirmed significant pricing discrimination between South and West Euro Area Periphery (SWEAP) and the core Eurozone, highlighting asymmetries discovered either by the respective size of estimated DEBT coefficients or by the significant effects of DOWN that have only on CDS of SWEAP countries. The current account balance or the inflation rate, as well as, relevant interaction terms seem not to affect the spreads of the EMU. These findings, together with the estimated structural change on CDS pattern in early 2011, coinciding with significant either the DOWN in the pre-crisis period (2008–2010) or the DEBT in the post-crisis one (2011–2013) on the CDS, seem to be consistent with self-fulfilling crises literature and the inherent vulnerability of EMU, on other words, the ‘fragility hypothesis of the Eurozone’.
Journal: Applied Economics
Pages: 3782-3796
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267851
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267851
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3782-3796




Template-Type: ReDIF-Article 1.0
Author-Name: H. Youn Kim
Author-X-Name-First: H. Youn
Author-X-Name-Last: Kim
Author-Name: Junsoo Lee
Author-X-Name-First: Junsoo
Author-X-Name-Last: Lee
Title: Intertemporal production and intertemporal substitution in output supply and input demand
Abstract: 
 This article presents an intertemporal model of production with multiple inputs to investigate substitution opportunities facing firms over time. The firm’s intertemporal profit maximization problem is characterized with the familiar cost function, and various intertemporal substitution elasticities are delineated for output supply and input demand. The absence of intertemporal substitution in production can imply production smoothing, and allowance for intertemporal substitution in labour demand reinforces the prediction of the real business cycle model. For aggregate US manufacturing, we find substantial substitution in output supply and labour demand over time due to intertemporal changes in output price and wage rates.
Journal: Applied Economics
Pages: 3797-3814
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267852
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267852
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3797-3814




Template-Type: ReDIF-Article 1.0
Author-Name: Shujin Zhu
Author-X-Name-First: Shujin
Author-X-Name-Last: Zhu
Author-Name: Renyu Li
Author-X-Name-First: Renyu
Author-X-Name-Last: Li
Title: Economic complexity, human capital and economic growth: empirical research based on cross-country panel data
Abstract: 
 Economic complexity reflects a country’s production capabilities and plays an important role in economic growth. This article measures the economic complexity of 210 countries using the method of reflections, and investigates the impact of economic complexity and human capital on economic growth. The measurement results show that there are significant differences regarding the level of complexity among countries. High-income economies have higher complexity than low- and middle-income economies. The empirical findings demonstrate that economic complexity and different levels of human capital have positive effects on long- and short-term growth. A positive interaction effect on economic growth exists between economic complexity and human capital. In addition, secondary education as a proxy for human capital has a relatively greater positive direct effect and a much stronger interactive effect with complexity on economic growth. In addition, the magnitude of the interaction effect between economic complexity and human capital on long- and short-term growth increases as the revealed comparative advantage threshold grows.
Journal: Applied Economics
Pages: 3815-3828
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270413
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270413
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3815-3828




Template-Type: ReDIF-Article 1.0
Author-Name: Takehiro Usui
Author-X-Name-First: Takehiro
Author-X-Name-Last: Usui
Author-Name: Mitsuko Chikasada
Author-X-Name-First: Mitsuko
Author-X-Name-Last: Chikasada
Author-Name: Kazuhiko Kakamu
Author-X-Name-First: Kazuhiko
Author-X-Name-Last: Kakamu
Title: Does garbage pricing increase the immoral disposal of household waste?
Abstract: 
 Some empirical studies have attempted to clarify the mechanism of illegal dumping by examining the degree to which per-bag pricing plays a role. However, previous research on the behaviour of avoiding paying a charge for waste collection has tended to neglect so-called ‘immoral disposal,’ which is less risky than illegal dumping because there is no legal penalty. In this study, we define immoral disposal as the dumping of waste in a manner that is immoral but not illegal. To detect the existence of immoral disposal, we apply a spatial econometric approach, namely an extended panel spatial Durbin model, to identify the actual spillover effect of garbage pricing in neighbouring municipalities on immoral disposal from the total waste. A major finding of this study is that immoral disposal exists in unit-based pricing, two-tiered pricing, and fixed pricing.
Journal: Applied Economics
Pages: 3829-3840
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270414
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270414
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3829-3840




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Vosseler
Author-X-Name-First: Alexander
Author-X-Name-Last: Vosseler
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Bayesian analysis of periodic unit roots in the presence of a break
Abstract: 
 A Bayesian testing approach for a periodic unit root in quarterly and monthly data is presented. Further a Bayesian test is introduced to test for unit roots at (non)seasonal spectral frequencies. All procedures admit one structural break in the periodic trend function, where the occurrence of a break and the associated timing are treated as additional model parameters. A Bayesian model averaging (BMA) approach is proposed and power functions of the tests are computed. Overall the results indicate that the BMA periodic unit root test exhibits favourable test properties even in small samples. In an empirical application the presented testing procedures are used to test for (non)seasonal forms of unemployment persistence among OECD countries.
Journal: Applied Economics
Pages: 3841-3862
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270415
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270415
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3841-3862




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Fernandez-Perez
Author-X-Name-First: Adrian
Author-X-Name-Last: Fernandez-Perez
Author-Name: Bart Frijns
Author-X-Name-First: Bart
Author-X-Name-Last: Frijns
Author-Name: Alireza Tourani-Rad
Author-X-Name-First: Alireza
Author-X-Name-Last: Tourani-Rad
Title: Precious metals, oil and the exchange rate: contemporaneous spillovers
Abstract: 
 We investigate the contemporaneous spillovers among precious metals, crude oil and the US$ exchange rate. We contend that conventional reduced-form vector autoregressive (VAR) models based on lead/lag relations do not fully capture the interactions among these series as these models ignore the contemporaneous effects. Using a Structural VAR model, we identify these contemporaneous spillovers, which are shown to be strong and asymmetric. We further show that not taking into consideration the contemporaneous interactions among these assets leads to inaccurate findings and inevitably to inaccurate interpretations of the causal relations among them.
Journal: Applied Economics
Pages: 3863-3879
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270416
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270416
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3863-3879




Template-Type: ReDIF-Article 1.0
Author-Name: Ashwin Madhou
Author-X-Name-First: Ashwin
Author-X-Name-Last: Madhou
Author-Name: Tayushma Sewak
Author-X-Name-First: Tayushma
Author-X-Name-Last: Sewak
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Title: GDP nowcasting: application and constraints in a small open developing economy
Abstract: 
 Despite data limitations, an attempt is made to find out if a GDP nowcasting model can provide reliable forecasts for a small open economy. Two competing Bayesian vector autoregressive models are tested rigorously to obtain the optimal model by minimizing in-sample forecasting errors. The main finding of this study is that GDP nowcasting can produce reliable results for a small open economy despite the unavailability of sufficient data sets and the lack of high frequency indicators.
Journal: Applied Economics
Pages: 3880-3890
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270417
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270417
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3880-3890




Template-Type: ReDIF-Article 1.0
Author-Name: Ning Meng
Author-X-Name-First: Ning
Author-X-Name-Last: Meng
Author-Name: Chris Milner
Author-X-Name-First: Chris
Author-X-Name-Last: Milner
Author-Name: Huasheng Song
Author-X-Name-First: Huasheng
Author-X-Name-Last: Song
Title: Differences in the determinants and targeting of antidumping: China and India compared
Abstract: 
 Despite both being developing countries, China and India have markedly contrasting patterns in their use and targeting of antidumping (AD) measures. We explore the factors driving AD use by these two countries, considering in turn macroeconomic, strategic and other determinants. We find more regular or systematic features of AD use by China, while India displays a less systematic pattern of AD use. Economic growth, AD club effect and free trade agreement participation are shown to constrain AD use by China. Compared to India, AD use by China is also more sensitive across industries. Furthermore, China targets developed countries more than developing countries, while India is less discriminating with respect to the country type it targets.
Journal: Applied Economics
Pages: 4083-4097
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150954
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150954
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4083-4097




Template-Type: ReDIF-Article 1.0
Author-Name: Malathy Duraisamy
Author-X-Name-First: Malathy
Author-X-Name-Last: Duraisamy
Author-Name: P. Duraisamy
Author-X-Name-First: P.
Author-X-Name-Last: Duraisamy
Title: Gender wage gap across the wage distribution in different segments of the Indian labour market, 1983–2012: exploring the glass ceiling or sticky floor phenomenon
Abstract: 
 Women’s participation in the Indian labour market is not only low but they are also engaged in low-productivity and low-paying jobs. Further, the labour market is segmented by gender, type of employment, sector and location of residence. This study makes an important contribution by examining gender wage gap in India across different segments of the labour market over the wage distribution using national-level representative data spanning the period 1983 to 2012. The empirical results suggest that (i) the male–female raw wage gap has declined over time across the wage distribution, (ii) the gender wage gap attributable to differing returns to characteristics has increased over time and there is evidence of convergence of productive characteristics of men and women, (iii) sticky floor rather than glass ceiling phenomenon is observed in all segments of the labour market and (iv) the adjusted wage gap suggests that women at the bottom of the distribution face higher discrimination than those at the top and this has increased over the years.
Journal: Applied Economics
Pages: 4098-4111
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150955
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150955
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4098-4111




Template-Type: ReDIF-Article 1.0
Author-Name: Sucharita Ghosh
Author-X-Name-First: Sucharita
Author-X-Name-Last: Ghosh
Author-Name: C. Lockwood Reynolds
Author-X-Name-First: C. Lockwood
Author-X-Name-Last: Reynolds
Author-Name: Shawn M. Rohlin
Author-X-Name-First: Shawn M.
Author-X-Name-Last: Rohlin
Title: The spillover effects of United States foreign trade zones
Abstract: 
 This article empirically tests the geographic and economic spillover effects of foreign trade zones (FTZs) in the United States by utilizing propensity score matching and the geographic rules of the programme. While these FTZ sites are designed to support manufacturing, we find that ZIP codes that receive FTZ sites experience growth in new and existing non-manufacturing establishments. Our results also show that FTZs spillover into nearby ZIP codes. We find that ZIP codes that border FTZ ZIP codes also experience positive effects on non-manufacturing establishments and these spillovers are strongest within a 5-mile radius of an FTZ.
Journal: Applied Economics
Pages: 4112-4130
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153787
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153787
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4112-4130




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Kelly Burns
Author-X-Name-First: Kelly
Author-X-Name-Last: Burns
Title: The random walk as a forecasting benchmark: drift or no drift?
Abstract: 
 We examine the proposition that the random walk without drift is more powerful in predicting exchange rates than the random walk with drift. It is demonstrated that there is no theoretical reason why the random walk without drift always outperforms the random walk with drift and that this is an empirical issue. The results show that while the random walk without drift can outperform the random walk with drift in terms of the RMSE, it fails to do so in terms of the ability to predict the direction of change, measures that take into account magnitude and direction, and in terms of profitability. If the drift factor is allowed to change over time by estimating the model in time-varying parameter terms, the random walk with drift performs even better.
Journal: Applied Economics
Pages: 4131-4142
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153788
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153788
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4131-4142




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Antonio Campos-Soria
Author-X-Name-First: Juan Antonio
Author-X-Name-Last: Campos-Soria
Author-Name: Miguel Angel Ropero-García
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Ropero-García
Title: Gender segregation and earnings differences in the Spanish labour market
Abstract: 
 This article analyses the effects of different types of gender segregation on the gender wage differential for the Spanish labour market. Matched employer–employee data from a sample of 226,535 workers are used. These workers are employed in 61 occupations within 26,492 establishments in 51 different industries. Workers belonging to the same industry, establishment or job share common factors which cannot be observed and these factors affect wages. If these unobservable variables are correlated with the explanatory variables, their estimated effects will be biased. For this reason, we estimate the effects of each type of gender segregation on the wage gap using a robust specification to these possible correlations. We obtain that industrial segregation by gender explains a lower part of the wage gap between men and women than previous researches found using standard regressions, while the contributions of establishment segregation and occupational segregation within each establishment are greater.
Journal: Applied Economics
Pages: 4143-4155
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153789
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153789
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4143-4155




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Yin
Author-X-Name-First: Wei
Author-X-Name-Last: Yin
Author-Name: Kent Matthews
Author-X-Name-First: Kent
Author-X-Name-Last: Matthews
Title: The determinants and profitability of switching costs in Chinese banking
Abstract: 
 This article models the determinants of bank switching costs in China in terms of bank characteristics and non-bank variables. It also determines the contribution of switching costs to banks’ profits. Using a sample of 151 banks over the period 2003–2013 it reports a positive relationship between bank profitability and switching costs. The main result is that bank size measured by total assets has a complex relationship with switching costs. Competition between small banks creates the incentive for lock-in and increased switching costs whereas very large banks are less exercised by lock-in and switching costs.
Journal: Applied Economics
Pages: 4156-4166
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153790
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153790
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4156-4166




Template-Type: ReDIF-Article 1.0
Author-Name: Marina-Selini Katsaiti
Author-X-Name-First: Marina-Selini
Author-X-Name-Last: Katsaiti
Author-Name: Mrittika Shamsuddin
Author-X-Name-First: Mrittika
Author-X-Name-Last: Shamsuddin
Title: Weight discrimination in the German labour market
Abstract: 
 We explore the effects of higher body mass index (BMI) or obesity on different labour market outcomes. We extend the present literature by investigating the effect of obesity on (i) promotion likelihood and (ii) unemployment duration, in addition to the effect on (iii) wages and (iv) probability of being employed. We find an obesity penalty on wages, employment likelihood, promotion likelihood and unemployment duration among females in Germany taking into account of endogeneity of BMI and sample selection. We are also able to identify an unexplained effect of obesity on wages, employment and promotion likelihood for females using decomposition techniques that can be attributed to weight discrimination.
Journal: Applied Economics
Pages: 4167-4182
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153791
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153791
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4167-4182




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Mei-Ping Chen
Author-X-Name-First: Mei-Ping
Author-X-Name-Last: Chen
Author-Name: Erh-Yin Sun
Author-X-Name-First: Erh-Yin
Author-X-Name-Last: Sun
Title: Member states’ pact and industry co-movements in the BRICS markets
Abstract: 
 Through the existence of supply chain relationships among BRICS (Brazil, Russia, India, China and South Africa), we explore the industry return co-movements of the BRICS markets and the impacts of BRICS-related events on the time-varying conditional correlation and volatility. We find that BRICS-related events have increased industry co-movements and substantially reduced volatility. An asymmetry in industry return co-movements shows a strong response to good news. The first formal BRICS summit in 2009 is the most dominant event influencing BRICS industry co-movements, while there is a significant decline in correlations during the 2013 BRICS event. The financial industries of BRICS have the highest co-movements among sampled industries.
Journal: Applied Economics
Pages: 313-334
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197367
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197367
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:313-334




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Lechner
Author-X-Name-First: Michael
Author-X-Name-Last: Lechner
Author-Name: Paul Downward
Author-X-Name-First: Paul
Author-X-Name-Last: Downward
Title: Heterogeneous sports participation and labour market outcomes in England
Abstract: 
 Based on a unique composite dataset measuring heterogeneous sports participation, labour market outcomes and local facilities provision, this article examines for the first time the association between different types of sports participation and employment and earnings in England. Clear associations between labour market outcomes and sports participation are established through matching estimation while controlling for some important confounding factors. The results, which are supplemented and supported by a formal sensitivity analysis, suggest a link between different types of sports participation to initial access to employment and then higher income opportunities with ageing. However, these vary between the genders and across sports. Specifically, the results suggest that team sports contribute most to employability, but that this varies by age across genders and that outdoor activities contribute most towards higher incomes.
Journal: Applied Economics
Pages: 335-348
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197369
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197369
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:335-348




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Larry Li
Author-X-Name-First: Larry
Author-X-Name-Last: Li
Title: The mystery of the Chinese exchange rate regime: basket or no basket?
Abstract: 
 Economists have taken for granted the claim made by the Chinese government that the policy shift introduced in July 2005 constituted a change in the exchange rate regime from a fixed peg to a basket peg. We demonstrate that neither the stylized facts nor the empirical evidence support the proposition of a basket peg and suggest several reasons as to why China has not adopted this regime. The results could prove useful for identifying the Chinese exchange rate regime in the aftermath of the perceived policy shift following the August 2015 devaluation.
Journal: Applied Economics
Pages: 349-360
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197370
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:349-360




Template-Type: ReDIF-Article 1.0
Author-Name: Megan Gu
Author-X-Name-First: Megan
Author-X-Name-Last: Gu
Author-Name: Meliyanni Johar
Author-X-Name-First: Meliyanni
Author-X-Name-Last: Johar
Title: Profiling hospital utilization in a mixed public–private system
Abstract: 
 While there is an extensive body of literature on the demand for hospital services, little is known about the interaction between public and private hospitals in a mixed system. In this article, we (1) apply latent class analysis to identify distinct subgroups of patients who use the hospital market differently, (2) characterize each patient type by their personal characteristics and (3) link the patient type to future hospital admissions. We apply our analysis to individual-level longitudinal patient data from Australia, focusing on three popular procedures that are performed in both public and private hospitals. We find 4–5 patient types. The most common types use either a public or a private hospital almost exclusively and absorb a moderate level of hospital resources. The severe types represent 13–17% of patients. The type which uses both sectors makes up 10–20% and tends to have private health insurance coverage. The patient types are predictive of prospective utilizations as we find that patients tend to be admitted to the sector they have used in the past. By revealing how patients use coexisting public and private hospitals, our results have direct implications on health resource financing and allocations.
Journal: Applied Economics
Pages: 361-375
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197371
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197371
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:361-375




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Y. Mathä
Author-X-Name-First: Thomas Y.
Author-X-Name-Last: Mathä
Author-Name: Allison Shwachman Kaminaga
Author-X-Name-First: Allison
Author-X-Name-Last: Shwachman Kaminaga
Title: Regional wages and market potential in the enlarged EU: an empirical investigation
Abstract: 
 This article empirically analyses the link between market potential and regional wages in the enlarged EU. We contribute to the existing literature in several ways: (1) we analyse the link between market potential and wages for the EU27 and (2) deconstruct total market potential into several geographical components and analyse their respective contributions to explaining the geographical wage structure. We correct for existing spatial autocorrelation and endogeneity by using an instrumental variable generalized spatial two-stage least squares (IV GS2SLS).
Journal: Applied Economics
Pages: 376-385
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197372
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197372
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:376-385




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Author-Name: Rianne Legerstee
Author-X-Name-First: Rianne
Author-X-Name-Last: Legerstee
Author-Name: Richard Paap
Author-X-Name-First: Richard
Author-X-Name-Last: Paap
Title: Estimating loss functions of experts
Abstract: 
 We propose a new and simple methodology to estimate the loss function associated with experts’ forecasts. Under the assumption of conditional normality of the data and the forecast distribution, the asymmetry parameter of the lin–lin and linex loss function can easily be estimated using a linear regression. This regression also provides an estimate for potential systematic bias in the forecasts of the experts. The residuals of the regression are the input for a test for the validity of the normality assumption. We apply our approach to a large data set of SKU-level sales forecasts made by experts, and we compare the outcomes with those for statistical model-based forecasts of the same sales data. We find substantial evidence for asymmetry in the loss functions of the experts, with underprediction penalized more than overprediction.
Journal: Applied Economics
Pages: 386-396
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197373
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197373
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:386-396




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Author-Name: Justine Wood
Author-X-Name-First: Justine
Author-X-Name-Last: Wood
Title: Nonlinear exchange rate pass-through in industrial economies
Abstract: 
 This article presents theoretical arguments for a nonlinear pass-through relationship for import and export prices and investigates the relationship empirically. The theoretical argument is based on the menu-cost approach in which small absolute changes in exchange rates may not prompt price changes because the costs of doing so exceed the extra profits generated for firms involved in international trade. This relationship is investigated empirically using quarterly data for the period 1979q1-2015q1 for a sample of 17 countries. In the case of import prices, evidence is found of nonlinear adjustment consistent with the theoretical model in 4 out of 17 cases. In the case of export prices, such a relationship is only evident for two economies in the sample. However, for both the import and export price cases, a significant positive nonlinear relationship is found for the two largest economies in the sample, i.e. the United States and Japan.
Journal: Applied Economics
Pages: 397-402
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197374
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197374
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:397-402




Template-Type: ReDIF-Article 1.0
Author-Name: Leslie J. Verteramo Chiu
Author-X-Name-First: Leslie J.
Author-X-Name-Last: Verteramo Chiu
Author-Name: Jura Liaukonyte
Author-X-Name-First: Jura
Author-X-Name-Last: Liaukonyte
Author-Name: Miguel I. Gómez
Author-X-Name-First: Miguel I.
Author-X-Name-Last: Gómez
Author-Name: Harry M. Kaiser
Author-X-Name-First: Harry M.
Author-X-Name-Last: Kaiser
Title: Socially responsible products: what motivates consumers to pay a premium?
Abstract: 
 The motivation to pay a premium for socially responsible products is partly an expression of consumer concern for the well-being of those involved in the production process. Buying a product with a socially responsible label, and donating to a charity are similarly motivated actions. While there is an extensive literature on the economics of charitable giving that examines motivations to donate as well as on the impacts of labelling on consumer demand, there is little overlap between the two literatures. We bridge these two literatures by investigating whether consumers have heterogeneous motivations for paying a premium. Through a laboratory experiment that auctions coffee with hypothetical socially responsible labels that put different weights on in-kind versus cash transfers, we find that those consumers who prefer an in-kind transfer (paternalistic altruists) are willing to pay a 52.5% price premium over standard coffee. Those who prefer that most of the premium is paid as cash (strong altruists) are willing to pay a 42.5% premium. Finally, those who are indifferent to how the premium is spent by the recipient (warm-glow givers) are willing to pay only a 19.2% premium. We discuss the implications of our results and future research directions.
Journal: Applied Economics
Pages: 1833-1846
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226494
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226494
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1833-1846




Template-Type: ReDIF-Article 1.0
Author-Name: Tom Kennedy
Author-X-Name-First: Tom
Author-X-Name-Last: Kennedy
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: George Chen
Author-X-Name-First: George
Author-X-Name-Last: Chen
Title: Refitting the Kuznets curve using a gender-specific threshold model
Abstract: 
 Previous studies have reached mixed conclusions regarding the relationship between inequality and per capita income. These studies, however, fail to consider gender differences in income inequality and how these may impact on the relationship between income inequality and per capita income. Using Australian taxation statistics, we derive three sets of Gini coefficients (i.e. female, male and total) for the period 1950–2013. We then examine the relationship between inequality and real per capita income and find that a gender-specific threshold panel regression outperforms three other conventional models. Our findings suggest that ‘one set of coefficients does not fit all’ in that the use of aggregate and constant coefficients may mask variations within, and between, gender inequality over time.
Journal: Applied Economics
Pages: 1847-1854
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226495
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226495
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1847-1854




Template-Type: ReDIF-Article 1.0
Author-Name: Md. Akhtaruzzaman
Author-X-Name-First: Md.
Author-X-Name-Last: Akhtaruzzaman
Author-Name: Abul Shamsuddin
Author-X-Name-First: Abul
Author-X-Name-Last: Shamsuddin
Title: Australian financial firms’ exposures to the level, slope, and curvature of the interest rate term structure
Abstract: 
 This study examines the risk exposure of Australian financial firms to changes in the term structure of interest rates. Non-linearity in the interest rate term structure is captured by the three-factor model of interest rate level, slope, and curvature. We observe that financial firms have negative exposures to the interest rate level, while non-financial firms have positive exposures. This finding suggests that financial firms need to hedge against rising interest rates, while non-financial firms need to hedge against falling interest rates. Small banks and insurance companies have a positive risk exposure to the slope factor, while real estate firms have a negative risk exposure to the curvature factor. Though the interest rate level is the most important factor, ignoring the slope and curvature factors could lead to underestimating a financial firm’s overall interest rate risk exposure. These findings are robust to controlling for the orthogonalized market return, time-varying equity risk premium, and the global financial crisis. This study offers practical tools to regulators, such as the Reserve Bank of Australia and Australian Prudential Regulatory Authority for assessing interest rate risk exposures of the financial and non-financial sectors.
Journal: Applied Economics
Pages: 1855-1874
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229411
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229411
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1855-1874




Template-Type: ReDIF-Article 1.0
Author-Name: Jian Zhou
Author-X-Name-First: Jian
Author-X-Name-Last: Zhou
Title: Index arbitrage and dynamics between REIT index futures and spot prices
Abstract: 
 This article contributes to the real estate literature by investigating the pricing relationship between REIT index futures and spot. Based on the cost-of-carry model, we first show that there exist three arbitrage regimes in Australia’s REIT spot-futures price dynamics. Further analysis indicates that the two thresholds, which separate the regimes, are largely consistent with the level dictated by transaction costs. We then estimate a threshold vector error correction model (TVECM). The results show that mean reversion of the mispricing error only takes place in the two outer regimes. Furthermore, we find evidence that REIT spot market is more informationally efficient than the futures market. Given its short history, it will take time for REIT index futures market to mature. Finally, we find that we can enhance hedging performance by accommodating the feature of threshold cointegration displayed by the data. As the futures-spot relationship differs across regimes, we can develop a hedging strategy by adjusting the hedge ratio based on arbitrage regimes. It leads to a greater variance reduction for the hedged portfolio than some conventional methods examined in the existing real estate literature.
Journal: Applied Economics
Pages: 1875-1885
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229413
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229413
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1875-1885




Template-Type: ReDIF-Article 1.0
Author-Name: Begoña Giner
Author-X-Name-First: Begoña
Author-X-Name-Last: Giner
Author-Name: Francisca Pardo
Author-X-Name-First: Francisca
Author-X-Name-Last: Pardo
Title: Operating lease decision and the impact of capitalization in a bank-oriented country
Abstract: 
 This article explores the reasons why firms engage in operating leases and examines the potential impact of a change in the related accounting rules. We focus on the accounting advantage of off-balance financing, which does not affect the typical accounting-based covenants especially important in bank-oriented countries. However, we also consider other economically based arguments. Using manually collected operating lease data for Spanish listed firms, we use the constructive capitalization method to measure as-if liabilities. The results confirm that not only size and industry affect the decision but that firms closer to breaching their covenants are also more inclined to choose operating leases. Consequently, it is argued that such firms will be more affected by the accounting change; indeed, the inclusion of liabilities in the balance sheet might tighten financial covenants in loan agreements as evidenced in the paper. Not surprisingly, firms are strongly opposed to the accounting change.
Journal: Applied Economics
Pages: 1886-1900
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229416
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229416
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1886-1900




Template-Type: ReDIF-Article 1.0
Author-Name: Burcak Polat
Author-X-Name-First: Burcak
Author-X-Name-Last: Polat
Title: Financial components of FDI and choice of capital structure: an analysis for 30 OECD countries
Abstract: 
 Even though the choice of capital structure depends on the three different financial components of foreign direct investment (FDI), previous research has regarded FDI as unidimensional rather than multidimensional. This study addresses new findings in the FDI area and investigates the relevant determinants of capital structure in 30 OECD countries from 2006 to 2014 within the framework of a simultaneous equation model. Our primary findings reveal that each component has its own deterministic features driven by relevant policy variables and risks in the market. While an increase or decrease in equity capital shows the ability of the host country to attract new investments, the subsequent components are mostly used to adjust the equity capital investment exposure.
Journal: Applied Economics
Pages: 1901-1912
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229418
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229418
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1901-1912




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Tsung-Hsien Chen
Author-X-Name-First: Tsung-Hsien
Author-X-Name-Last: Chen
Author-Name: Han-Wen Tzeng
Author-X-Name-First: Han-Wen
Author-X-Name-Last: Tzeng
Title: Quantile unit root test and the PPP in Africa
Abstract: 
 In this study, we apply the Quantile unit root test and revisit the Purchasing Power Parity (PPP) in 20 African countries using real effective exchange rates over the period 1971Q1 to 2012Q4. While traditional unit root tests fail to reject unit root hypothesis in most of the countries, results from Quantile unit root test reject unit root null hypothesis in Ghana, Mauritius, Niger, South Africa, and Togo, providing support for the PPP at least in these five countries. We further estimate the half-life based on Quantile autoregressive (QAR) model to be about 4.57–7.96 quarters (1–2 year).
Journal: Applied Economics
Pages: 1913-1921
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229423
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229423
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1913-1921




Template-Type: ReDIF-Article 1.0
Author-Name: Lei Pan
Author-X-Name-First: Lei
Author-X-Name-Last: Pan
Author-Name: Svetlana Maslyuk-Escobedo
Author-X-Name-First: Svetlana
Author-X-Name-Last: Maslyuk-Escobedo
Title: Stochastic convergence in per capita energy consumption and its catch-up rate: evidence from 26 African countries
Abstract: 
 Using annual data from 1971 to 2014, we examine stochastic conditional convergence in per capita energy consumption for 26 low income, lower middle-income and upper-middle-income African countries. To do so, we use panel unit root tests that allow for cross-sectional dependence and structural breaks as well as the recently developed univariate Residual Augmented Least Squares-Lagrange multiplier (RALS-LM) unit root test with structural breaks. Although for most countries our evidence suggests stochastic conditional convergence, we find divergence for four countries including DR Congo, Senegal, Egypt and Botswana. Consistent with the neoclassical growth models we also examine the catch-up rate between energy consumption levels of African economies and that one of China and investigate its convergence properties. As African economies continue to grow, regional energy consumption disparity narrows, African energy consumption levels will catch up to the ones in China.
Journal: Applied Economics
Pages: 2566-2590
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1549793
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1549793
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2566-2590




Template-Type: ReDIF-Article 1.0
Author-Name: Justin Choe
Author-X-Name-First: Justin
Author-X-Name-Last: Choe
Author-Name: Jun Sung Kim
Author-X-Name-First: Jun Sung
Author-X-Name-Last: Kim
Title: Minimax after money-max: why major league baseball players do not follow optimal strategies
Abstract: 
 Using real-life sports data of Major League Baseball, this paper investigates whether professional players follow the minimax theorem in their strategies. Our empirical results using the 2010 regular-season data show that baseball players do not optimize their strategies: there is a significant difference in their payoffs across strategies, and the sequence of their strategy choices is predictable from their previous actions. Further analysis using individual salaries and key contract variables indicates that a higher salary has a positive impact on following minimax strategies in the regular season. By contrast, a longer contract decreases a player’s incentive to pursue optimal strategies in the postseason. These results have important implications for compensation practices in various fields.
Journal: Applied Economics
Pages: 2591-2605
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558346
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558346
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2591-2605




Template-Type: ReDIF-Article 1.0
Author-Name: Emma Persson
Author-X-Name-First: Emma
Author-X-Name-Last: Persson
Author-Name: Sofie Persson
Author-X-Name-First: Sofie
Author-X-Name-Last: Persson
Author-Name: Ulf-G. Gerdtham
Author-X-Name-First: Ulf-G.
Author-X-Name-Last: Gerdtham
Author-Name: Katarina Steen Carlsson
Author-X-Name-First: Katarina
Author-X-Name-Last: Steen Carlsson
Author-Name:  
Author-X-Name-First: 
Author-X-Name-Last: 
Title: Effect of type 1 diabetes on school performance in a dynamic world: new analysis exploring Swedish register data
Abstract: 
 This paper investigates if the effect of type 1 diabetes mellitus (T1DM) on school performance, documented in prior research, has changed in more recent birth cohorts of children using national Swedish population register data. The issue is of interest because management and treatment of the disease have improved over the last decades and, furthermore, because of changes in the educational grading system. Despite these changes, data indicate a persistent negative effect of T1DM on compulsory and upper secondary school grades with a standardized effect size of −0.109 and −0.070, respectively, and the results appear only marginally smaller compared to earlier findings in cohorts completing school under the previous grading system. Moreover, the results are consistent for alternative model specifications and econometric estimation strategies. Whereas access to new treatment technologies and improved diabetes management strategies has reduced the burden of diabetes in daily life, the results from this study indicate that continued efforts are needed to improve the situation in school for children with T1DM to prevent potential long-term socio-economic consequences.
Journal: Applied Economics
Pages: 2606-2622
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558347
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558347
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2606-2622




Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Ghio
Author-X-Name-First: Alessandro
Author-X-Name-Last: Ghio
Author-Name: Massimo Ruberti
Author-X-Name-First: Massimo
Author-X-Name-Last: Ruberti
Author-Name: Roberto Verona
Author-X-Name-First: Roberto
Author-X-Name-Last: Verona
Title: Financial constraints on sport organizations’ cost efficiency: the impact of financial fair play on Italian soccer clubs
Abstract: 
 We analyze the effect of the introduction of stricter financial constraints on the trade-off between sporting and economic results. We apply a stochastic Cobb-Douglas production frontier model to a sample of Italian Serie A teams, i.e. first division, over the period 2005–2015 to evaluate the variation in soccer clubs’ cost efficiency following the application of the UEFA Financial Fair Play (FFP) principles in 2010. FFP imposes stricter financial regulation as a requirement for a club to be admitted to Union of European Football Associations (UEFA) tournaments. Firstly, we find that FFP does not improve the average efficiency of the Italian first division teams. Secondly, we show that FFP has contributed to leveling the playing field, reducing the gap in terms of efficiency between top teams and lower-tier teams.Abbreviations: FFP: Financial Fair Play; UEFA: Union of European Football Associations; DEA: Data Envelopment Analysis; SFA: Stochastic Frontier Analysis
Journal: Applied Economics
Pages: 2623-2638
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558348
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558348
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2623-2638




Template-Type: ReDIF-Article 1.0
Author-Name: Amélie Charles
Author-X-Name-First: Amélie
Author-X-Name-Last: Charles
Author-Name: Olivier Darné
Author-X-Name-First: Olivier
Author-X-Name-Last: Darné
Author-Name: Jean-François Hoarau
Author-X-Name-First: Jean-François
Author-X-Name-Last: Hoarau
Title: How resilient is La Réunion in terms of international tourism attractiveness: an assessment from unit root tests with structural breaks from 1981-2015
Abstract: 
 Even if local policymakers increasingly claim that tourism is one of the key factors of future economic development for the French small island La Réunion, international tourist arrivals are observed to be locked in a stagnation phase since the beginning of the 2000s. Starting from this stylized fact, this article aims to study if this phenomenon results from major external events hurting this economy regularly. Next, by using univariate unit root procedures with structural breaks, we test for evidence of permanent or transitory effects of external shocks on international tourist inflows (total, by source markets, and by category) over the period 1981–2015. Finally, the empirical analysis allows us to reject the null of a unit root. Then, stagnation of tourism arrivals to La Réunion is not due to exogenous shocks but probably results from endogenous impediments within the domestic tourism industry and unsuitable public policies.
Journal: Applied Economics
Pages: 2639-2653
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558349
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558349
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2639-2653




Template-Type: ReDIF-Article 1.0
Author-Name: Seyed Ali Madanizadeh
Author-X-Name-First: Seyed Ali
Author-X-Name-Last: Madanizadeh
Author-Name: Hanifa Pilvar
Author-X-Name-First: Hanifa
Author-X-Name-Last: Pilvar
Title: The impact of trade openness on labour force participation rate
Abstract: 
 In this article, we investigate the impact of trade openness on labour force participation rate. We use tariff rate as the main indicator of trade openness and we employ the number of regional trade agreements and the average tariff rate in the neighbours’ countries as instrumental variables to diminish the endogeneity problem of the tariff rate. We find that trade openness increases the participation rate which is economically and statistically significant. The results show that this correlation is robust under controlling for different variables and using various specifications. We find that 10 percentage point increase in tariff rate lowers the participation rate by 4–6 percentage point and this relationship is more severe in the long run. Finally, we show that changes in labour force population accounts for about 27% of changes in the unemployment rate following a trade liberalization.
Journal: Applied Economics
Pages: 2654-2668
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558350
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558350
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2654-2668




Template-Type: ReDIF-Article 1.0
Author-Name: Jayasuriya Mahapatabendige Ruwani Fernando
Author-X-Name-First: Jayasuriya Mahapatabendige Ruwani
Author-X-Name-Last: Fernando
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Author-Name: Yang (Greg) Hou
Author-X-Name-First: Yang (Greg)
Author-X-Name-Last: Hou
Title: Corporate governance and default prediction: a reality test
Abstract: 
 Default prediction has commanded the attention of researchers for at least 50 years. This paper addresses several testable hypotheses regarding the relations between corporate governance and default prediction. We employ the conventional logistic regression to provide empirical evidence from U.S. default data over the period of 2000 to 2015. Empirical results are consistent with the following notions: First, default firms are associated with high ownership concentration, low shareholder rights, low financial transparency and disclosures, and less board effectiveness. Second, in-sample and out-of-sample tests support the incremental contribution of corporate governance information on default prediction, when compared with the models involving just financial information.
Journal: Applied Economics
Pages: 2669-2686
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558351
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558351
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2669-2686




Template-Type: ReDIF-Article 1.0
Author-Name: Diego Winkelried
Author-X-Name-First: Diego
Author-X-Name-Last: Winkelried
Author-Name: Javier Torres
Author-X-Name-First: Javier
Author-X-Name-Last: Torres
Title: Economic mobility along the business cycle. The case of Peru
Abstract: 
 The performance of Latin American countries in reducing poverty and expanding the middle class has been remarkable. By taking a close look at the Peruvian experience, we examine how this aggregate behavior relates to business cycle conditions and whether different population groups share this behavior. We find that social mobility is cyclical; it decreases in recessions but increases with strong economic growth. The reduction in poverty in Peru appears to be the result of a sustained increase in the poverty exit rate together with a prolonged decrease in the poverty entry rate. These results hold among heterogeneous groups and are particularly marked for households regarded as initially disadvantaged.
Journal: Applied Economics
Pages: 1894-1906
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529401
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529401
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1894-1906




Template-Type: ReDIF-Article 1.0
Author-Name: Yann Braouezec
Author-X-Name-First: Yann
Author-X-Name-Last: Braouezec
Title: Public versus private insurance system with (and without) transaction costs: optimal segmentation policy of an informed monopolist
Abstract: 
 Computer-mediated transactions allow insurance companies to customize their contracts, while transaction costs limit this tendency toward customization. To capture this phenomenon, we develop a complete-information framework in which it is costly to design a new market segment when the segmentation policy (number and design of segments) is endogenously chosen. Both the case of a private and a public insurer are considered. Without transaction costs, these two insurance systems are equivalent in terms of social welfare and participation. With transaction costs, this equivalence is no longer present, and the analysis of this difference is the subject of this article.
Journal: Applied Economics
Pages: 1907-1928
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529402
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529402
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1907-1928




Template-Type: ReDIF-Article 1.0
Author-Name: Abdelwahed Omri
Author-X-Name-First: Abdelwahed
Author-X-Name-Last: Omri
Author-Name: Karim Soussou
Author-X-Name-First: Karim
Author-X-Name-Last: Soussou
Author-Name: Nadia Ben Sedrine Goucha
Author-X-Name-First: Nadia
Author-X-Name-Last: Ben Sedrine Goucha
Title: On the post-financial crisis performance of Islamic mutual funds: the case of Riyad funds
Abstract: 
 Using Riyad Capital mutual funds as a proxy for Saudi Arabian mutual funds, this paper empirically compares the risk-adjusted performance and investment style of Islamic mutual funds with that of conventional funds in the wake of the recent global financial crisis of 2009&#x2013;2014. Absolute and relative risk-adjusted measures with single factor (Jensen) and multifactor (Carhart) models are applied. Our findings suggest that Islamic funds outperformed conventional funds domestically, given similar risk exposure, and produced comparable results under lower market risk globally. The results show that Islamic funds are a relatively big cap from the strong statistical significance registered on the global side as evidenced by the difference portfolio outcomes. In addition, the difference portfolios provide statistical evidence that Islamic funds are more value-oriented compared to conventional funds on both fronts. Furthermore, Islamic funds tend to slightly favour a contrarian trading investment strategy as suggested by statistically significant local portfolio value and global difference portfolios results. The results of home bias test show stronger ties by local Islamic funds to local market relative to the global proxy suggesting that domestic investors and managers favour Islamic funds over conventional funds, thus confirming a local preference for Shari&#x2019;ah-compliant investments.
Journal: Applied Economics
Pages: 1929-1946
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529403
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529403
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1929-1946




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Mazza
Author-X-Name-First: Paolo
Author-X-Name-Last: Mazza
Author-Name: Mikael Petitjean
Author-X-Name-First: Mikael
Author-X-Name-Last: Petitjean
Title: Testing the effect of technical analysis on market quality and order book dynamics
Abstract: 
 We find empirical support for the theoretical finding in agent-based models of limit order book markets that the effect of technical trading on market quality is not positive. When signals occur, technical traders lower liquidity as proxied by the relative spread, the effective spread, the realized spread, the dispersion and the slope in the order book. Technical trading is also found to be accompanied by rising volatility. There is overall strong empirical support against the hypothesis that technical trading has no effect on order book dynamics.
Journal: Applied Economics
Pages: 1947-1976
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529404
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529404
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1947-1976




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Author-Name: Adam G. Walke
Author-X-Name-First: Adam G.
Author-X-Name-Last: Walke
Title: Empirical evidence regarding electricity consumption and urban economic growth
Abstract: 
 Links between electricity consumption and economic growth are fairly well documented for national economies, but less so for urban economies. The analysis of such relationships at the sub-national level of aggregation can potentially offer a useful complement to national-level research. This study examines the electricity-growth nexus in El Paso, Texas, while also considering the roles of capital stocks and employment. Testing suggests the presence of cointegrating relationships and a vector error correction model is estimated. Granger causality tests reveal the absence of causality between electricity consumption and personal income, implying that energy conservation efforts will have a neutral effect on economic growth. Furthermore, the results indicate that causality runs from the capital stock and employment to both personal income and electricity consumption. This echoes previous research regarding the importance of accounting for capital and labour factors of production in studies of aggregate electricity utilization and economic performance. The methodology used in this analysis to develop a broad synthetic measure of the urban capital stock, including various categories of public infrastructure, can also be applied to other regions and urban economies.
Journal: Applied Economics
Pages: 1977-1988
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529405
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529405
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1977-1988




Template-Type: ReDIF-Article 1.0
Author-Name: Jinsub Choi
Author-X-Name-First: Jinsub
Author-X-Name-Last: Choi
Title: The effect of school capital investments on local housing markets and household sorting in California
Abstract: 
 In this paper, I investigate what effect school capital investments have on housing values and household location choice in the context of the Tiebout model. This research identifies an exogenous variation in school capital investments by exploiting the lottery allocation of entitlement to an interest-free construction bond among districts in California. Although the lottery is exogenous, additional non-lottery allocation complicates identification. This paper develops an empirical model based on sample selection methods in order to create a counterfactual state in which additional non-lottery allocation would not have existed. I find that receiving the interest-free construction bond increases school capital expenditure and housing values at the district level. I view the increase in housing values as the capitalization of school capital investments. I find little evidence for the effect of the interest-free construction bond on household sorting and student&#x2019;s academic outcomes.
Journal: Applied Economics
Pages: 1989-2000
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1537475
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1537475
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1989-2000




Template-Type: ReDIF-Article 1.0
Author-Name: Viet-Ngu Hoang
Author-X-Name-First: Viet-Ngu
Author-X-Name-Last: Hoang
Author-Name: Son Nghiem
Author-X-Name-First: Son
Author-X-Name-Last: Nghiem
Author-Name: Xuan-Binh Vu
Author-X-Name-First: Xuan-Binh
Author-X-Name-Last: Vu
Title: Stunting and academic achievement among Vietnamese children: new evidence from the young lives survey
Abstract: 
 Most of the empirical literature on the relationship between the health condition and skill development of school children are based on a static relationship between health and skill development. This article contributes to the literature by examining the dynamic relationship between stunting and school achievement using data from the first three waves of the Young Lives Survey in Vietnam. Using both structural equation and hybrid estimators, empirical results show that past school performance is the most significant predictor of the academic performance. Stunting has a significant negative effect on school performance, and its effect in the long&#xA0;run is as twice as much its effect in the short&#xA0;run. The empirical evidence also shows that the age of the child, mothers&#x2019; literacy, access to electricity and household consumption significantly affect school performance.
Journal: Applied Economics
Pages: 2001-2009
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1537476
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1537476
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:2001-2009




Template-Type: ReDIF-Article 1.0
Author-Name: Iftekhar Robin
Author-X-Name-First: Iftekhar
Author-X-Name-Last: Robin
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: Financial deregulation and productivity growth in banking sector: empirical evidence from Bangladesh
Abstract: 
 This article examines the effects of regulatory reform on productivity growth in the Bangladesh banking industry. We use a unique balanced panel dataset comprising bank-level annual data from the early deregulation year (1984) to the most recent available period (2012) from major commercial banks in Bangladesh. Applying the Färe-Primont index, the paper provides estimates of productivity growth and identifies sources of total factor productivity (TFP) change. Empirical results show the sample banks have experienced positive TFP change after the financial deregulation. On average, TFP growth is higher in private banks than their public sector counterparts in the post-reform period. In addition, the decomposition analysis shows technological progress is the main driver of productivity change. Similar results are obtained by using the stochastic frontier analysis (SFA). Thus, empirical results remain robust irrespective of the methodology used. The regression analysis finds a positive technical change in the first stage of the reform program, i.e. during the transition period, as leading banks employ advanced technology to compete with potential new entrants. The result also shows that the banking industry still remains concentrated within the state-owned banks.
Journal: Applied Economics
Pages: 5104-5121
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1607244
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1607244
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5104-5121




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre-Jean Messe
Author-X-Name-First: Pierre-Jean
Author-X-Name-Last: Messe
Author-Name: François-Charles Wolff
Author-X-Name-First: François-Charles
Author-X-Name-Last: Wolff
Title: Healthier when retiring earlier? Evidence from France
Abstract: 
 This paper contributes to the literature on the health-retirement relationship by looking at the effect of retiring before legal age on health in later life in France. To account for the endogeneity of the early retirement decision, our identification strategy relies on eligibility rules to a long-career early retirement scheme introduced in France in 2004 that substantially increased the proportion of older workers leaving their last job before the legal age of 60 years. We find a positive correlation between early retirement and health problems among male retirees. However, we fail to find any significant causal effect of early retirement on poor health once we account for the endogeneity of the decision to retire before the legal age. Controlling for working conditions does not influence the effect of retirement and occupying a demanding job is harmful to health after retirement regardless of the retirement date. Similar results are found for female retirees.
Journal: Applied Economics
Pages: 5122-5143
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610710
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610710
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5122-5143




Template-Type: ReDIF-Article 1.0
Author-Name: Dominique Meurs
Author-X-Name-First: Dominique
Author-X-Name-Last: Meurs
Author-Name: Emmanuel Valat
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Valat
Title: A better job thanks to personal networks? An evaluation for migrants who arrived in France before age 18
Abstract: 
 It is more difficult for migrants than natives to find a job in their host country, so many of them have to accept, at least temporarily, a job that is below their level of qualification. This represents a waste of human capital for society and can undermine social cohesion. Relying on social relationships might help them to bypass some of the obstacles that prevent them from finding a job that matches their skillset. We focus on migrants who arrived in France before the age of 18 years, who were educated entirely or partially in France. We use the rich French Trajectories and Origins dataset for 2009 to study the impact of personal contacts on the quality of the current employment. We measure the job quality using an indicator based on the educational requirement for a given occupation. To address the endogeneity between our dependent variable (holding a suitable job or not) and the variable of interest (employment found through a personal contact or not), we use the variable ‘sibling(s) in France’ as an instrument: this variable influences an individual’s probability of finding a job through contacts but does not influence directly the quality of the employment. Our results indicate that for these migrants, finding a job through personal contacts strongly and positively impacts the occupational status attained: it raises both women’s and men’s probability of holding a suitable job by more than 0.40 points.
Journal: Applied Economics
Pages: 5144-5159
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610711
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610711
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5144-5159




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Magnus Bjuggren
Author-X-Name-First: Carl Magnus
Author-X-Name-Last: Bjuggren
Author-Name: Niklas Elert
Author-X-Name-First: Niklas
Author-X-Name-Last: Elert
Title: Gender differences in optimism
Abstract: 
 This article examines gender differences in optimism about the economy. We measure optimism using Swedish survey data in which respondents stated their beliefs about the country’s future economic situation. We argue that this measure of optimism is preferable to common measurements in the literature since it avoids confounding individuals’ economic situation with their perception of the future and it can be compared to economic indicators. In line with previous research, we find that men are more optimistic than women; however, men are also more prone to be wrong in their beliefs about the future economic situation. Furthermore, in sharp economic downturns, the gender differences in optimism disappear. This convergence in beliefs can be explained by the amount of available information on the economy.
Journal: Applied Economics
Pages: 5160-5173
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610714
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610714
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5160-5173




Template-Type: ReDIF-Article 1.0
Author-Name: Anne Sophie Oxholm
Author-X-Name-First: Anne Sophie
Author-X-Name-Last: Oxholm
Author-Name: Sibilla Di Guida
Author-X-Name-First: Sibilla
Author-X-Name-Last: Di Guida
Author-Name: Dorte Gyrd-Hansen
Author-X-Name-First: Dorte
Author-X-Name-Last: Gyrd-Hansen
Author-Name: Kim Rose Olsen
Author-X-Name-First: Kim Rose
Author-X-Name-Last: Olsen
Title: Taking care of high-need patients in capitation-based payment schemes – an experimental investigation into the importance of market conditions
Abstract: 
 Many health-care systems use provider payment as an instrument to ensure an efficient and equitable delivery of care. Capitation-based payment schemes are popular because they contain costs. However, they are known to lead to underprovision of care, especially to high-need patients. Using a laboratory experiment, we test whether the availability of resources affects providers’ response to a capitation-based scheme. We find that the relative underprovision of care to high-need patients exists both when providers are resource abundant and constrained. Next, we introduce two different versions of the scheme and test whether they incentivize providers to take better care of high-need patients. One scheme ring-fences part of the capitation payment to a fixed physician salary, whilst the other scheme differentiates payments based on patients’ expected need of care. We find that high-need patients gain the most from a fixed provider salary under resource abundance, but find no difference in gains between patient types under resource constraint. Our results also show that differentiation of capitation makes providers take relatively better care of patients linked to an above average payment compared to a below average payment, regardless of resource constraints. Our findings suggest that both the design of the scheme and the market condition affect providers’ patient prioritization under capitation.
Journal: Applied Economics
Pages: 5174-5184
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610715
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610715
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5174-5184




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald A. Ratti
Author-X-Name-First: Ronald A.
Author-X-Name-Last: Ratti
Author-Name: Joaquin L. Vespignani
Author-X-Name-First: Joaquin L.
Author-X-Name-Last: Vespignani
Title: What drives the global official/policy interest rate?
Abstract: 
 We construct a GFAVAR model with newly released global data from the Federal Reserve Bank of Dallas to investigate the drivers of global official/policy interest rate. We find that 66% of movement in global official/policy interest rates is attributed to changes in global monetary aggregates (23%), oil prices (19%), global output (16%) and global prices (8%). Global official/policy interest rates respond significantly to increases in global output, inflation and oil prices. Increases in global policy interest rates are associated with reductions in global prices and global output. The response in official/policy interest rate for the emerging countries is more to global inflation, for the advanced countries (excluding the U.S.) is more to global output, and for the U.S. is to both global output and inflation.
Journal: Applied Economics
Pages: 5185-5190
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610716
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610716
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5185-5190




Template-Type: ReDIF-Article 1.0
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Rébecca Stekelorum
Author-X-Name-First: Rébecca
Author-X-Name-Last: Stekelorum
Author-Name: Jamal Elbaz
Author-X-Name-First: Jamal
Author-X-Name-Last: Elbaz
Author-Name: David Duchamp
Author-X-Name-First: David
Author-X-Name-Last: Duchamp
Title: Getting into the energy efficiency scene: does corporate social responsibility matter for energy efficiency in SMEs?
Abstract: 
 A growing body of literature argues that improving energy efficiency is an essential step that firms must take to mitigate climate change issues. It is assumed that corporate social responsibility (CSR) in general plays a prominent role in firms’ policies, and this paper specifically investigates the effects of the individual CSR dimensions on SMEs’ energy efficiency improvement. Based on data from a sample of 146 thousand SMEs, and using logit model, and fuzzy set qualitative comparative analysis, the study reveals that high activities in social, environmental and economic CSR dimensions are associated with high energy efficiency. Specifically, the environmental CSR dimension has the highest contribution to improving energy efficiency. Furthermore, this study indicates that energy efficiency improvement can be achieved by large SMEs provided they have developed simultaneously the environmental, social, and economic CSR dimensions. In doing so, this study answers to recent calls for more research on CSR-energy efficiency relationship and addresses with greater precision why it matters to relate the role of the CSR dimensions and energy efficiency. Furthermore, this study can be of value to policymakers who are called to promote CSR practices of SMEs in order to foster their energy efficiency.
Journal: Applied Economics
Pages: 5191-5204
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610719
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610719
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5191-5204




Template-Type: ReDIF-Article 1.0
Author-Name: Heesun Jang
Author-X-Name-First: Heesun
Author-X-Name-Last: Jang
Author-Name: Xiaodong Du
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Du
Title: Evolving techniques in production function identification illustrated in the case of the US dairy
Abstract: 
 We estimate production technologies of major dairy producing regions in the U.S. The simultaneity and sample selection biases are carefully corrected following the recent development in the literature. The commonly applied control function approaches are found to be misleading in correcting for biases of coefficient estimates on flexible and quasi-fixed input variables. We show that the emerging dairy regions have relatively higher aggregate productivity than traditional regions. Dynamic decomposition results indicate that surviving farms play a more important role in regional productivity growth than entering and exiting farms. Farm- and regional-level driving forces of farm productivity are also examined.
Journal: Applied Economics
Pages: 1463-1477
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527457
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527457
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1463-1477




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Balaguer-Coll
Author-X-Name-First: Maria Teresa
Author-X-Name-Last: Balaguer-Coll
Author-Name: Maria Isabel Brun-Martos
Author-X-Name-First: Maria Isabel
Author-X-Name-Last: Brun-Martos
Author-Name: Laura M&#xE1;rquez-Ramos
Author-X-Name-First: Laura
Author-X-Name-Last: M&#xE1;rquez-Ramos
Author-Name: Diego Prior
Author-X-Name-First: Diego
Author-X-Name-Last: Prior
Title: Local government efficiency: determinants and spatial interdependence
Abstract: 
 We analyse the determinants of local government efficiency taking into account the presence of spatial interactions among neighbouring municipalities. To do so, first we estimate an efficiency index using the robust order-m methodology in Valencian municipalities (Spain). Second, we examine the socio-economic, political and budgetary factors that might influence efficiency levels. Finally, we analyse the spatial interactions present in our data. The results of estimating a spatial autoregressive model show that government efficiency in neighbouring municipalities positively affects the local government&#x2019;s own efficiency. This highlights the importance of considering spatial dependence structures in studies on efficiency in the public sector.
Journal: Applied Economics
Pages: 1478-1494
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527458
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527458
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1478-1494




Template-Type: ReDIF-Article 1.0
Author-Name: Ikerne del Valle
Author-X-Name-First: Ikerne
Author-X-Name-Last: del Valle
Author-Name: Kepa Astorkiza
Author-X-Name-First: Kepa
Author-X-Name-Last: Astorkiza
Title: Bioeconomic diversity dynamics of a marine ecosystem
Abstract: 
 This paper models the bio-economic diversity dynamics of a marine ecosystem made up by its entire commercial fish species and, from the fitted model, obtains a quantitative measure of its resilience to disturbance in terms of recovery time after a shock. Such shocks might be produced by both, downturns in catches and/or prices related to changing regulatory and environmental conditions. To that end, monthly time series of bio-economic diversity indices will be used and the framework of a mixed cyclical ARFIMA joint with a GARCH type heteroscedaticity model will be explored to analyse the dynamic properties of such indices and, based on the estimated impulse response functions (IRF) to measure the effects and duration of a unitary random shock or disturbance. One of our findings is that bio-economic diversity is a mean-reverting process with an estimated recovery time between 7 and 10&#xA0;years.
Journal: Applied Economics
Pages: 1495-1513
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527459
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527459
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1495-1513




Template-Type: ReDIF-Article 1.0
Author-Name: Samir Huseynov
Author-X-Name-First: Samir
Author-X-Name-Last: Huseynov
Author-Name: Bachir Kassas
Author-X-Name-First: Bachir
Author-X-Name-Last: Kassas
Author-Name: Michelle S. Segovia
Author-X-Name-First: Michelle S.
Author-X-Name-Last: Segovia
Author-Name: Marco A. Palma
Author-X-Name-First: Marco A.
Author-X-Name-Last: Palma
Title: Incorporating biometric data in models of consumer choice
Abstract: 
 The use of neuro-physiological data in models of consumer choice is gaining popularity. This article presents some of the benefits of using psycho-physiological data in analyzing consumer valuation and choice. Eye-tracking, facial expressions, and electroencephalography (EEG) data were used to construct three non-conventional choice models, namely, eye-tracking, emotion and brain model. The predictive performance of the non-conventional models was compared to a baseline model, which was based entirely on conventional data. While the emotion and brain models proved to be as good as conventional data in explaining and predicting consumer choice, the eye-tracking model generated superior predictions. Moreover, we document a significant increase in predictive power when biometric data from different sources were combined into a mixed model. Finally, we utilize a machine learning technique to sparse the data and enhance out-of-sample prediction, thus showcasing the compatibility of biometric data with well-established statistical and econometric methods.
Journal: Applied Economics
Pages: 1514-1531
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527460
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527460
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1514-1531




Template-Type: ReDIF-Article 1.0
Author-Name: Clinton L. Neill
Author-X-Name-First: Clinton L.
Author-X-Name-Last: Neill
Author-Name: Rodney B. Holcomb
Author-X-Name-First: Rodney B.
Author-X-Name-Last: Holcomb
Author-Name: Kellie Curry Raper
Author-X-Name-First: Kellie Curry
Author-X-Name-Last: Raper
Author-Name: Brian E. Whitacre
Author-X-Name-First: Brian E.
Author-X-Name-Last: Whitacre
Title: Effects of spatial density on veterinarian income: where are all of the veterinarians?
Abstract: 
 With increased numbers of veterinarians in the market, it is critical to understand how this increased competition affects income potential at multiple levels. This study presents an empirical approach that incorporates local and nonlocalised spatial competition of firms into one model. By analysing the market for veterinarians using a spatial weight matrix approach, we are able to quantify localized and nonlocalised competition which assists in defining relevant market areas for veterinarians. Specifically, increased density within their county and surrounding counties decreases veterinarian income. Thus, the potential market area for veterinarians is larger than the local/county market in which they practice. This is important for veterinarians when choosing a location to practice, as they must consider the competition and demand in local and non-local areas.
Journal: Applied Economics
Pages: 1532-1540
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527461
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527461
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1532-1540




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Satchell
Author-X-Name-First: Stephen
Author-X-Name-Last: Satchell
Author-Name: Susan Thorp
Author-X-Name-First: Susan
Author-X-Name-Last: Thorp
Author-Name: Oliver Williams
Author-X-Name-First: Oliver
Author-X-Name-Last: Williams
Title: Reversing disbursement rates to estimate stationary wealth processes for endowments with recursive preferences
Abstract: 
 Endowments have been accused of hoarding their wealth. However, the theoretically ideal spending plan remains unclear and, in practice, endowments follow a range of rules. Here we derive and estimate the optimal spending plans of an infinitely lived charity or endowment with an Epstein-Zin-Weil utility function, given general Markovian returns to wealth. We analyse two special cases: first, where spending is a power function of last period&#x2019;s wealth; and second where the endowment uses &#x2018;payout smoothing&#x2019;. Via non-linear least squares, we estimate the optimal spending rate and the elasticity of inter-temporal substitution for an endowment with a typical diversified portfolio and for a portfolio of hedge funds. In a new approach, we use maximum entropy methods to characterize the returns distribution of an endowment whose spending plan conforms with the optimality condition. We confirm that the estimated returns distribution is largely consistent with the optimal spending plan.
Journal: Applied Economics
Pages: 1541-1557
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527462
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527462
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1541-1557




Template-Type: ReDIF-Article 1.0
Author-Name: Kejo Starosta
Author-X-Name-First: Kejo
Author-X-Name-Last: Starosta
Author-Name: Sonia Budz
Author-X-Name-First: Sonia
Author-X-Name-Last: Budz
Author-Name: Michael Krutwig
Author-X-Name-First: Michael
Author-X-Name-Last: Krutwig
Title: The impact of German-speaking online media on tourist arrivals in popular tourist destinations for Europeans
Abstract: 
 This empirical study analyzes the relationship between the sentiments in online media with regard to travel destinations and corresponding tourist arrivals. We expect the media reports on political and economic instability and turmoil to enhance tourist arrival nowcasts and forecasts, as they can probably complement them with information on disruptions and shocks. Therefore, we believe this research will help to build better models for tourism demand nowcasting and forecasting. We use the sentiment in the German-speaking online media because the German-speaking region is the most populated in Europe and has the largest group of travelers visiting destinations in and around Europe.An artificial neural network is used to analyze the mood of the media. The software classifies news items regarding potential tourist destinations with either positive or negative labels. The number of positive and negative news items is used to build sentiment indices for popular tourist destinations for Europeans.Our results show strong correlations between the mood concerning tourist destinations and tourist arrivals in these countries. Indeed, disruptions and shocks prevalent in the news are reflected in similar ratios in both tourist arrivals and sentiment indices. These results can be used as a new explanatory variable for tourism demand modelling.
Journal: Applied Economics
Pages: 1558-1573
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527463
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527463
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1558-1573




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Huang
Author-X-Name-First: Wei
Author-X-Name-Last: Huang
Author-Name: Agyenim Boateng
Author-X-Name-First: Agyenim
Author-X-Name-Last: Boateng
Title: Executive shareholding, compensation, and analyst forecast of Chinese firms
Abstract: 
 We examine the impact of executive and leadership shareholding and cash compensation on analyst forecast error and dispersion as proxies for information asymmetry. We find that firms pay higher compensation (or excess compensation) to executives and directors are associated with higher information asymmetry. The positive association is stronger where executives’ and directors’ shareholdings are higher. Shareholding appears to facilitate managerial entrenchment and gives highly paid executives/leadership stronger structural power which adversely affects information disclosure leading to larger forecast error and dispersion. These results are robust to different measures of compensation and alternative models controlling for the predictability of firm-level earnings. Our findings indicate that executive/director shareholding and compensation do not provide sufficient incentives for information disclosure by Chinese firms.
Journal: Applied Economics
Pages: 1459-1472
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218432
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218432
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1459-1472




Template-Type: ReDIF-Article 1.0
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Rongrong Li
Author-X-Name-First: Rongrong
Author-X-Name-Last: Li
Author-Name: Qiankun Sun
Author-X-Name-First: Qiankun
Author-X-Name-Last: Sun
Title: How the heterogeneity in investment horizons affects market trends
Abstract: 
 To investigate the relationship between the liquidity and the divergent degree of heterogeneous investors with different investment horizons, we propose an agent-based model based on the assumptions of the fractal market hypothesis. A laboratory market is used to investigate the impact of the divergent degree on the stability of the financial market. Simulation results indicate that the market becomes more stable as investors become increasingly divergent and are more likely to absorb the orders of the other side and maintain a narrow trade gap. Moreover, with highly heterogeneous investors, the market is more efficient, less liable to crash and less volatile. The simulation, based on the agent-based model, demonstrates that the interactions and herding behaviours of investors lead to a market crash when the divergent structure shrinks and only limited investment horizons are available. The result also suggests an alternate explanation of the anomaly of efficient market hypothesis, which shows why the momentum and contrarian strategies can earn excess returns in the short term and the long term, respectively. It also verifies the hypothesis that heterogeneous investors with different investment horizons provide market liquidity.
Journal: Applied Economics
Pages: 1473-1482
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218433
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218433
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1473-1482




Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: Blaming suicide on NASA and divorce on margarine: the hazard of using cointegration to derive inference on spurious correlation
Abstract: 
 Contrary to common belief, cointegration testing may not distinguish between spurious relations and genuine ones. It is demonstrated that highly correlated series appear as cointegrated, even though common sense tells us that the underlying relation does not make sense. Empirical testing using simulated data, data from daily life and historical data on interest rates shows that cointegration may fail not only to detect spurious correlation but also to capture cointegration in a genuine relation. Cointegration testing to reveal spurious correlation can only be used in conjunction with theory, common sense and intuition.
Journal: Applied Economics
Pages: 1483-1490
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218434
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218434
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1483-1490




Template-Type: ReDIF-Article 1.0
Author-Name: Katja Ignatieva
Author-X-Name-First: Katja
Author-X-Name-Last: Ignatieva
Author-Name: Natalia Ponomareva
Author-X-Name-First: Natalia
Author-X-Name-Last: Ponomareva
Title: Commodity currencies and commodity prices: modelling static and time-varying dependence
Abstract: 
 This article employs the copula approach to study the relationship between exchange rates and commodity prices for large commodity exporters. Using data for the nominal exchange rates of four commodity currencies (Australian, Canadian and New Zealand dollars, and Norwegian krone) against the US dollar and the relevant country-specific commodity price indices, constructed on a daily basis, we find (1) a positive dependence between the values of commodity currencies and commodity indices, i.e. a commodity index increases when a respective currency appreciates and provides several explanations for this finding; (2) no major asymmetries in the tail dependence for most pairs of exchange rates and commodity indices and (3) a pronounced increase in the time-varying tail dependence following the global financial crisis.
Journal: Applied Economics
Pages: 1491-1512
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1221038
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221038
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1491-1512




Template-Type: ReDIF-Article 1.0
Author-Name: Bing Zhang
Author-X-Name-First: Bing
Author-X-Name-Last: Zhang
Title: How do great shocks influence the correlation between oil and international stock markets?
Abstract: 
 We investigate the impacts of great shocks (2003 Iraq War and 2008 Financial Crisis) on the correlations between oil and US/China stock markets, utilizing a novel MADCC (mixed asymmetry dynamic conditional correlation) model. This model successfully captures the coexistence of opposite signed asymmetries. We find that great shocks indeed increased the correlations. Further, results from the news impact surfaces indicate that correlations between oil and stock markets are higher to joint negative shocks; however, correlation between stock markets has stronger response to joint positive shocks.
Journal: Applied Economics
Pages: 1513-1526
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1221040
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221040
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1513-1526




Template-Type: ReDIF-Article 1.0
Author-Name: Claudiu Tiberiu Albulescu
Author-X-Name-First: Claudiu Tiberiu
Author-X-Name-Last: Albulescu
Author-Name: Cornel Oros
Author-X-Name-First: Cornel
Author-X-Name-Last: Oros
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Title: Oil price–inflation pass-through in Romania during the inflation targeting regime
Abstract: 
 In the wake of the inflation-targeting strategy in Romania, we estimate the impact of international oil prices upon the consumer price index (CPI) and core inflation. The inflation target was systematically missed by the monetary authorities who explain this failure by exogenous factors. Using a frequency domain framework, we show that the oil price–inflation pass-through can be observed only for those components of inflation which include volatile prices and only in the medium run. Our results put forward that the constant missing of the target cannot be explained by the oil price–inflation pass-through and the credibility of the strategy is put into question.
Journal: Applied Economics
Pages: 1527-1542
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1221041
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221041
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1527-1542




Template-Type: ReDIF-Article 1.0
Author-Name: Darold Barnum
Author-X-Name-First: Darold
Author-X-Name-Last: Barnum
Author-Name: Jason Coupet
Author-X-Name-First: Jason
Author-X-Name-Last: Coupet
Author-Name: John Gleason
Author-X-Name-First: John
Author-X-Name-Last: Gleason
Author-Name: Abagail McWilliams
Author-X-Name-First: Abagail
Author-X-Name-Last: McWilliams
Author-Name: Annaleena Parhankangas
Author-X-Name-First: Annaleena
Author-X-Name-Last: Parhankangas
Title: Impact of input substitution and output transformation on data envelopment analysis decisions
Abstract: 
 Data envelopment analysis (DEA) can aid managerial decision-making because it offers an opportunity to measure organizational performance in a holistic manner, aggregating data from partial indicators into a single comprehensive measure. However, there are some methodological hazards associated with the use of DEA that are especially relevant to managerial decisions, but which have been largely ignored in the literature. Herein, we identify and show the impact of a ubiquitous methodological hazard in DEA modelling – the economic assumptions regarding input substitutions and output transformations.
Journal: Applied Economics
Pages: 1543-1556
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1221042
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221042
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1543-1556




Template-Type: ReDIF-Article 1.0
Author-Name: Daeyong Lee
Author-X-Name-First: Daeyong
Author-X-Name-Last: Lee
Title: Dividend taxation and household dividend portfolio decisions: evidence from the U.S. Jobs and Growth Tax Relief Reconciliation Act of 2003
Abstract: 
 This study examines the dividend clientele hypothesis by focusing on the preferential tax treatment of qualified dividends provided by the 2003 Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) in the United States. Using the Public Use Tax File data, the author finds that the ratios of dividends to long-term capital gains before the 2003 tax act significantly declined with household tax rate differentials between dividends and long-term capital gains, but such a negative tax effect on the ratios disappears afterwards. This seemingly tax-inefficient composition of dividends and long-term capital gains after the tax act arises from households’ ability to reduce their tax burdens on stocks by exploiting the new preferential tax treatments on qualified dividends under JGTRRA. That is, households in the upper tax bracket hold significantly greater shares of qualified dividends relative to ordinary dividends after the tax act.
Journal: Applied Economics
Pages: 723-737
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205722
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205722
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:723-737




Template-Type: ReDIF-Article 1.0
Author-Name: H. Kent Baker
Author-X-Name-First: H. Kent
Author-X-Name-Last: Baker
Author-Name: Imed Chkir
Author-X-Name-First: Imed
Author-X-Name-Last: Chkir
Author-Name: Samir Saadi
Author-X-Name-First: Samir
Author-X-Name-Last: Saadi
Author-Name: Ligang Zhong
Author-X-Name-First: Ligang
Author-X-Name-Last: Zhong
Title: What drives the high moments of hedge fund returns?
Abstract: 
 We study the high-moment distribution of hedge fund returns and identify factors that drive high-moment risk. Using hedge fund monthly returns, we find a strong correlation between the first four moments of returns (i.e. mean, standard deviation (SD), skewness, and kurtosis) and different characteristics of the funds such as leverage, liquidity, incentives, and strategy-related factors. We find that after controlling for other factors, incentives-related factors and a hedge fund’s specific strategy have the greatest impact on the distribution of fund returns. Our evidence also suggests investors allocate across hedge fund characteristics while placing greater emphasis on fund strategies and incentive factors.
Journal: Applied Economics
Pages: 738-755
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205723
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205723
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:738-755




Template-Type: ReDIF-Article 1.0
Author-Name: Ewelina Sokołowska
Author-X-Name-First: Ewelina
Author-X-Name-Last: Sokołowska
Title: Does growing wealth influence hedge funds’ development? An empirical analysis
Abstract: 
 Alternative investments, such as hedge funds, have, in last years, become an integral part of the investment portfolios of the wealthy. The article’s goal is also to answer the following research question: Does the global wealth of the world have impact on the global value of the hedge funds’ assets? We also try to forecast the value of the hedge funds’ assets for the next years 2015–2017. The results from this study would also be valuable to investors and other stakeholders, such as the regulators and the creditors of the hedge funds.
Journal: Applied Economics
Pages: 756-768
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205724
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205724
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:756-768




Template-Type: ReDIF-Article 1.0
Author-Name: Rajibur Reza
Author-X-Name-First: Rajibur
Author-X-Name-Last: Reza
Author-Name: Gurudeo Anand Tularam
Author-X-Name-First: Gurudeo Anand
Author-X-Name-Last: Tularam
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: An investigation into the interdependence of global water indices: a VAR analysis
Abstract: 
 We investigate the extent and manner of equity price interdependence among four water indices – World Water Index, S-Network Global Water index (S-Net), S&amp;P Global Water Index (S&amp;P) and MSCI ACWI Water Utilities Index (MSCI ACWI) using the vector autoregression (VAR) framework for the period 2004–2014. We also employ methods of Granger causalities, variance decomposition and impulse responses. We find Granger causality significance between S-Net and MSCI ACWI and S-Net and S&amp;P indices at the 1% level of significance, suggesting that the indices are significantly linked. Further, S-Net is the most influential index amongst them in the forecast variance that can be accounted by S-Net at level of 55.75%. Our study indicates that the four water indices are interdependent and related, so the water indices are influenced by movements in the other water indices.
Journal: Applied Economics
Pages: 769-796
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205725
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205725
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:769-796




Template-Type: ReDIF-Article 1.0
Author-Name: Meliyanni Johar
Author-X-Name-First: Meliyanni
Author-X-Name-Last: Johar
Author-Name: Shiko Maruyama
Author-X-Name-First: Shiko
Author-X-Name-Last: Maruyama
Author-Name: Jeffrey Truong
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Truong
Title: The contribution of Western fast food to fast-growing body mass in China
Abstract: 
 The westernization of Asian countries has led to the rapid expansion of Western-style fast-food restaurants, which are believed to be fueling an unprecedented rise in body mass in these countries. This study tests this belief using longitudinal data from China. Exploiting the opening of a Western-style fast-food restaurant in a particular community, we conduct a transition analysis to make a more convincing causal interpretation than the standard cross-sectional or fixed-effects approach. Considering several measures of fatness, we find no robust evidence of Western fast food having a substantial effect overall, but there is some indication of effect heterogeneity.
Journal: Applied Economics
Pages: 797-811
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205726
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205726
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:797-811




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M. Blau
Author-X-Name-First: Benjamin M.
Author-X-Name-Last: Blau
Title: Skewness preferences, asset prices and investor sentiment
Abstract: 
 Prior research has found that investors have strong preferences for stocks with positive skewness. These preferences have been shown to lead to price premiums and subsequent underperformance. This study extends this growing body of literature by testing whether the underperformance of stocks with positive skewness is driven by periods of high investor sentiment. The motivation for these tests is based on a broad literature in Psychology that an individual’s mood can directly affect the individual’s subjective probability assessments. In the framework of our tests, more optimism among investors may strengthen investors’ skewness preferences. The empirical results in this study support this idea as the underperformance of positively skewed stocks is shown to be primarily driven by periods of high investor sentiment.
Journal: Applied Economics
Pages: 812-822
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205727
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205727
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:812-822




Template-Type: ReDIF-Article 1.0
Author-Name: Grégory Levieuge
Author-X-Name-First: Grégory
Author-X-Name-Last: Levieuge
Title: Explaining and forecasting bank loans. Good times and crisis
Abstract: 
 This article aims to develop a parsimonious model to explain and forecast bank loans to nonfinancial companies during calm periods as well as in situations of financial turmoil. It focuses on the French context, over a period including financial, banking and sovereign debt crises. Theoretical views and intuitions led us to gauge the marginal informational content of a large set of leading indicators in VAR and VECM models, and to investigate potential nonlinearity in credit dynamics. In accordance with firms and banks’ balance sheet effects, the growth rate of equity prices appears to be one of the most interesting leading indicator as well as a significant threshold variable for explaining regime switching. However, it appears difficult to accurately predict the right credit dynamics regimes. A simple VAR model finally performs better.
Journal: Applied Economics
Pages: 823-843
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208350
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208350
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:823-843




Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Posso
Author-X-Name-First: Alberto
Author-X-Name-Last: Posso
Author-Name: Prema-chandra Athukorala
Author-X-Name-First: Prema-chandra
Author-X-Name-Last: Athukorala
Title: Microfinance and child mortality
Abstract: 
 Microfinance institutions (MFIs) offer targeted opportunities for the poor to generate additional income with a range of financial services including credit, insurance, savings accounts and money transfers. Aside from reducing poverty, microfinance can potentially improve health because it is the poor who are usually more constrained from health investments due to limited budgets. Furthermore, microfinancing specifically targets women, who are more likely to spend additional income on children’s well-being. Finally, several MFIs have also begun to offer health-related services, such as health education, health-care financing, clinical care, training community health workers, health micro-insurance and linkages to public and private health providers. Using a new data set, this article conducts the first multi-country study of the effect of microfinance on child mortality, the health outcome, which is most sensitive to the effects of absolute deprivation. Our findings confirm that an increase in the proportion of MFI clients in a country is significantly associated with lower under-five and infant mortality rates. We conclude that if MFIs’ educational and health services have indeed caused improvements in health outcomes at the community level, then it may be important for governments to complement these activities with similar campaigns, particularly in remote areas where MFI penetration is low.
Journal: Applied Economics
Pages: 2313-2324
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1394976
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394976
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2313-2324




Template-Type: ReDIF-Article 1.0
Author-Name: Minhua Yang
Author-X-Name-First: Minhua
Author-X-Name-Last: Yang
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Title: Narcissism, political tenure, financial indicators and the effectiveness of environmental regulation
Abstract: 
 This article explores the factors that determine the effectiveness of environmental regulation in the United States and Australia. Unlike prior literature, in which lagging performance measures (such as carbon emissions) are used, we use financial data to develop effectiveness scores and identify the determinants of effectiveness, including narcissistic behaviour, tenure of political leaders and financial indicators. Consistent with the emerging literature on environmental finance, we find that abnormal returns are associated with environmental regulation and that effectiveness is adversely affected when narcissistic leaders are in power. Our results remain robust when we control for various event windows and models.
Journal: Applied Economics
Pages: 2325-2338
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1394977
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394977
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2325-2338




Template-Type: ReDIF-Article 1.0
Author-Name: Ting Hu
Author-X-Name-First: Ting
Author-X-Name-Last: Hu
Author-Name: Cynthia M. Gong
Author-X-Name-First: Cynthia M.
Author-X-Name-Last: Gong
Title: Does reference point matter in the leverage–return relationship? Evidence from the US stock market
Abstract: 
 The leverage–return relationship is supported by inconclusive empirical evidence in terms of its sign and significance. In this study, we argue that such a puzzling relationship can be understood by extending the traditional theoretical framework in a way that captures the reference dependence characteristics of prospect theory. We postulate that a firm’s leverage position relative to its reference point (i.e. target leverage) combined with market conditions places firms in either a gain or a loss domain, thereby resulting in different leverage–return relationships. Leverage and expected equity returns generally exhibit positive and negative relationships in gain and loss domains, respectively. Three hypotheses are derived and tested using 1998–2013 empirical data from the US stock market. This article contributes to the existing literature by confirming the applicability of prospect theory in explaining expected returns in the stock market.
Journal: Applied Economics
Pages: 2339-2355
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1394978
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394978
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2339-2355




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Moizer
Author-X-Name-First: Jonathan
Author-X-Name-Last: Moizer
Author-Name: Sue Farrar
Author-X-Name-First: Sue
Author-X-Name-Last: Farrar
Author-Name: Mark Hyde
Author-X-Name-First: Mark
Author-X-Name-Last: Hyde
Title: UK state pension deferral incentives and sustainability
Abstract: 
 Pay-as-you-go state pension schemes such as that operated in the United Kingdom face growing pressures from the rising old-age dependency ratio and improvements to life expectancies. Alongside compulsory increases in the statutory retirement age, governments have used incentives to encourage workers to postpone voluntarily their exit from employment, deferring their Basic State Pension in exchange for the additional financial reward of an enhanced pension at a later point in time. The impact of pension deferral upon the sustainability of the state pension system is dependent on the interplay of short-term savings from payment delay and increased subsequent longer-term payments to pension recipients. This article presents a model that simulates the financial effect of deferral uptake on the National Insurance Fund over a 40-year projection under alternative scenarios, including current and revised post-2016 deferral incentives. The findings indicate that the recent change in enhancement rate from 10.4 per cent to 5.8 per cent will significantly impact on state pension sustainability while still providing an incentive to defer. We estimate that any reduction below 4 per cent would result in zero uptake of the deferral option, based on a rational financial choice.
Journal: Applied Economics
Pages: 2356-2368
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397850
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397850
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2356-2368




Template-Type: ReDIF-Article 1.0
Author-Name: Flávia Chein
Author-X-Name-First: Flávia
Author-X-Name-Last: Chein
Author-Name: Cristine Pinto
Author-X-Name-First: Cristine
Author-X-Name-Last: Pinto
Title: Credit constraint and human capital investment: an empirical analysis using Brazilian household budget survey
Abstract: 
 This article is a first step towards understanding the relationship between credit market imperfections and inequality of opportunity in skill formation. The main goal is to investigate the effects of the credit constraint on the optimal human capital decision, in terms of degree of schooling, taking into account the household preferences for education. Our starting point is a theoretical model of human capital investment decision with credit constraint. Following a previous model in the literature, we propose a reduced-form approach that estimates the relation between education decision and initial wealth in Brazil. Our empirical analysis is conducted using data from a Brazilian Household Budget Survey (Pesquisa de Orçamentos Familiares), for years 2002–2003 and 2008–2009. Our results point out that education decision is in fact credit constrained. The empirical results show a strong and highly significant effect of wealth on educational level of children, teenagers and adults, even controlling by education expenditures. But we find no evidence of credit constraint on high level education decision, like undergraduate and graduate levels.
Journal: Applied Economics
Pages: 2369-2385
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397851
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397851
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2369-2385




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Lensink
Author-X-Name-First: Robert
Author-X-Name-Last: Lensink
Author-Name: Roy Mersland
Author-X-Name-First: Roy
Author-X-Name-Last: Mersland
Author-Name: Nhung Thi Hong Vu
Author-X-Name-First: Nhung Thi Hong
Author-X-Name-Last: Vu
Author-Name: Stephen Zamore
Author-X-Name-First: Stephen
Author-X-Name-Last: Zamore
Title: Do microfinance institutions benefit from integrating financial and nonfinancial services?
Abstract: 
 This article examines the impact of microfinance ‘plus’ (i.e. coordinated combination of financial and nonfinancial services) on the performance of microfinance institutions (MFIs). Using a global data set of MFIs in 77 countries, we find that the provision of nonfinancial services does not harm nor improve MFIs’ financial sustainability and efficiency. The results however suggest that the provision of social services is associated with improved loan quality and greater depth of outreach.
Journal: Applied Economics
Pages: 2386-2401
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397852
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397852
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2386-2401




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad M. Habibpour
Author-X-Name-First: Mohammad M.
Author-X-Name-Last: Habibpour
Author-Name: Mathieu Peiffer
Author-X-Name-First: Mathieu
Author-X-Name-Last: Peiffer
Author-Name: Roland Pepermans
Author-X-Name-First: Roland
Author-X-Name-Last: Pepermans
Author-Name: Marc Jegers
Author-X-Name-First: Marc
Author-X-Name-Last: Jegers
Title: How giving affects giving: a long-term analysis of donations
Abstract: 
 Social preferences theories suggest that at least some people show altruistic behaviour. However, this philanthropic behaviour ranges from pure altruistic preferences to reluctant altruists. The fact that a subset of contributors has impure preferences raises questions regarding the stability of prosocial contributions. Assuming differences in other regarding preferences, we examine whether at an aggregated level monetary contributions are stable or fragile over time. We study the aggregated donations in the US from 1973 to 2013 using ARIMA and ARMAX models. The significant autoregressive and moving average coefficients in our estimations suggest that aggregated donations are highly autocorrelated. Our estimated impulse response functions indicate that aggregated donations converge to their historic mean quickly after an exogenous shock, which shows the stickiness of the inclination to donate.
Journal: Applied Economics
Pages: 2402-2413
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397853
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397853
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2402-2413




Template-Type: ReDIF-Article 1.0
Author-Name: Chong-Uk Kim
Author-X-Name-First: Chong-Uk
Author-X-Name-Last: Kim
Author-Name: Gieyoung Lim
Author-X-Name-First: Gieyoung
Author-X-Name-Last: Lim
Title: Immigration and domestic wage: an empirical study on competition among immigrants
Abstract: 
 While studies on the wage effects of immigration focus on native workers, there is significantly less information on the wage effects of immigration on domestic foreign-born workers. In addition to analysing the impact of immigration on wages of native workers, in this article, we estimate the internal competition among foreign-born workers in the United States. Firstly, using data from the Current Population Survey, we find no empirical evidence supporting the substitutability of native workers for immigrants. Secondly, there is no statistical difference between skilled and unskilled immigrants on the influence of the domestic labour market outcomes. Finally, there is no internal competition among immigrants. The income of non-citizen workers mainly depends on state and national levels of economic situations, not the number of non-citizen workers available in the labour market.
Journal: Applied Economics
Pages: 3351-3358
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259751
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259751
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3351-3358




Template-Type: ReDIF-Article 1.0
Author-Name: Laura M. Crispin
Author-X-Name-First: Laura M.
Author-X-Name-Last: Crispin
Author-Name: Dimitrios Nikolaou
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Nikolaou
Author-Name: Zheng (Muriel) Fang
Author-X-Name-First: Zheng (Muriel)
Author-X-Name-Last: Fang
Title: Extracurricular participation and risky behaviours during high school
Abstract: 
 Extracurriculars may reduce risky behaviours (smoking, alcohol, marijuana use) through human and health capital accumulation, crowding out and positive peer influences but may also increase them through peer pressure. Using data from the National Education Longitudinal Study, we estimate the contemporaneous and longer term effects of extracurricular participation on 10th and 12th grade risky behaviours. Joint estimation of the participation and risky behaviour decisions, which corrects for selection into extracurriculars, shows that extracurricular activities lead to substantial reductions in the likelihood of engagement in risky behaviours, particularly for smoking and marijuana, but these effects are not persistent in the longer run.
Journal: Applied Economics
Pages: 3359-3371
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259752
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259752
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3359-3371




Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni S. F. Bruno
Author-X-Name-First: Giovanni S. F.
Author-X-Name-Last: Bruno
Author-Name: Misbah Choudhry Tanveer
Author-X-Name-First: Misbah
Author-X-Name-Last: Choudhry Tanveer
Author-Name: Enrico Marelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Marelli
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: The short- and long-run impacts of financial crises on youth unemployment in OECD countries
Abstract: 
 The impact of financial crises on the youth unemployment rate (YUR), compared to the total unemployment rate (UR), is estimated for a panel of OECD countries over the period 1981–2009, using bias-corrected dynamic panel data estimators of short- and long-run coefficients. Both YUR and UR are found highly persistent. Also, short- and long-run effects of financial crises on YUR are significantly large, respectively, some 1.9 and 1.5–1.7 times higher than the short- and long-run effects on UR. Similar results are found for the unemployment impacts of GDP growth lagged 1 year and institutional variables. These results are robust to various dynamic specifications.
Journal: Applied Economics
Pages: 3372-3394
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259753
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259753
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3372-3394




Template-Type: ReDIF-Article 1.0
Author-Name: L.A. Smales
Author-X-Name-First: L.A.
Author-X-Name-Last: Smales
Title: The importance of fear: investor sentiment and stock market returns
Abstract: 
 The presence of investor sentiment pushes asset prices away from the equilibrium level justified by underlying fundamentals. While sentiment is not directly observable, identifying appropriate proxies and, quantifying the impact of sentiment on asset prices is an important topic. Asset prices that do not appropriately reflect fundamental values may result in inefficient allocation of capital – impacting portfolio allocation decisions and the cost of capital. Utilizing a number of sentiment proxies, over the period 1990–2015, we demonstrate a strong relationship between investor sentiment and stock returns that is consistent with theoretical explanations of sentiment. We determine that implied volatility index (VIX) is the preferred measure of sentiment in terms of improving model fit and adding explanatory power. Causality tests suggest that investor fear (VIX) drives returns across firm-size and value, and also across industry. We also illustrate that firms that are more subjective to value, or face limits to arbitrage, such as small-cap stocks, or those in the business equipment (technology) or telecoms industry, are most responsive to changes investor sentiment. Finally, we demonstrate that sentiment has a greater influence on market returns during recession, when sentiment is at its lowest ebb, and this is particularly true for those stocks most susceptible to speculative demand.
Journal: Applied Economics
Pages: 3395-3421
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259754
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259754
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3395-3421




Template-Type: ReDIF-Article 1.0
Author-Name: Roger C. Y. Chen
Author-X-Name-First: Roger C. Y.
Author-X-Name-Last: Chen
Author-Name: Chen-Hsun Lee
Author-X-Name-First: Chen-Hsun
Author-X-Name-Last: Lee
Title: The influence of CSR on firm value: an application of panel smooth transition regression on Taiwan
Abstract: 
 Previous studies on the relationship between corporate social responsibility (CSR) and firm value generally belong to one of the two opposing schools of thought: the social impact hypothesis and the shift of focus hypothesis. This study, however, proposes that the relationship between CSR and company value is non-linear and neither wholly positive nor negative. We employed the corporate social responsibility index (CRSI) to test this hypothesis. The panel smooth transition regression (PSTR) model was used to analyse listed Taiwanese firms from 2010 to 2012 and calculate the value transition threshold of CSR, using CSRI as the transition variable. We then applied PSTR to determine whether CSRI shows a two-regime, non-linear relationship, as inferred by our model. Empirical findings show that the threshold value of CSRI is 13.082, thus, we concluded that investment in CSR does not contribute to enhancing company value until it exceeds the value transition threshold.
Journal: Applied Economics
Pages: 3422-3434
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262516
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262516
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3422-3434




Template-Type: ReDIF-Article 1.0
Author-Name: Huayun Jiang
Author-X-Name-First: Huayun
Author-X-Name-Last: Jiang
Author-Name: Neda Todorova
Author-X-Name-First: Neda
Author-X-Name-Last: Todorova
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Title: Dynamics of volatility transmission between the U.S. and the Chinese agricultural futures markets
Abstract: 
 The U.S. and China are two of the biggest players in the world agricultural market. The literature documents that volatility in the U.S. agricultural futures market spills over significantly to that of China. This article provides further insights into the spillovers from China to the U.S. as well as the time horizon and dynamics of the bidirectional spillovers through the application of a multivariate extension of the heterogeneous autoregressive model, in relation to four commodities – soybean, wheat, corn and sugar. The results confirm the existence of significant spillovers from the U.S. to China for four commodities, which are primarily generated by the shorter-term volatility components in the U.S., and provide evidence for the increasing pricing power of the Chinese market. The findings are robust against various specifications and have important investment and policy implications.
Journal: Applied Economics
Pages: 3435-3452
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262517
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262517
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3435-3452




Template-Type: ReDIF-Article 1.0
Author-Name: Marat Ibragimov
Author-X-Name-First: Marat
Author-X-Name-Last: Ibragimov
Author-Name: Rustam Ibragimov
Author-X-Name-First: Rustam
Author-X-Name-Last: Ibragimov
Title: Unemployment and output dynamics in CIS countries: Okun’s law revisited
Abstract: 
 Okun’s law is a well-known relationship between the change in the unemployment rate and output growth. The main objective of this article is to provide a rigorous econometric analysis of Okun’s law for several CIS countries using different models and theoretically justified econometric methods. The traditional approach to Okun’s law estimation using OLS regressions does not account for possible endogeneity of regressors and the implied inconsistency of the estimates obtained. These problems point out to incorrectness of applications of the standard OLS estimation techniques. Our study addresses these issues by using econometrically justified instrumental variable regression methods. The article provides the results and discussions on practical use of Okun’s relationships for evaluation of average effects of economic growth on the unemployment rate, and vice versa; importance of accounting for confidence intervals in applications of Okun’s models to economic development analysis and cross-country comparisons and evaluation of effects of crises and other structural shocks on the economies considered. We also discuss in detail the results of formal econometric tests and economic motivation for validity of instrumental variables used in the study. The formal econometric tests, together with economic arguments, allow us to determine the most appropriate Okun-type models for each of the CIS countries under consideration.
Journal: Applied Economics
Pages: 3453-3479
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262519
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262519
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3453-3479




Template-Type: ReDIF-Article 1.0
Author-Name: Moulaye Bamba
Author-X-Name-First: Moulaye
Author-X-Name-Last: Bamba
Author-Name: Jean-Louis Combes
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Combes
Author-Name: Alexandru Minea
Author-X-Name-First: Alexandru
Author-X-Name-Last: Minea
Title: The effects of fiscal consolidations on the composition of government spending
Abstract: 
 In response to increasing debt paths, governments often implement fiscal consolidation programs. This paper studies the impact of these programs on the composition of government spending. System-GMM estimations performed on a sample of 53 developed and emerging countries over 1980–2011 reveal that fiscal consolidations significantly reduce the government investment-to-consumption ratio, i.e. a composition effect. Robust to a wide set of tests, including when using the narrative approach to identify fiscal consolidations, this significantly stronger contraction of government investment with respect to government consumption is at work particularly when debt is high and in the low phase of the economic cycle. Therefore, in such contexts, fiscal consolidations aimed at short-run stabilization may hurt the economy in the long-run through their detrimental effect on public investment, calling for a reflection upon how they could be re-designed to allow avoiding such undesirable consequences.
Journal: Applied Economics
Pages: 1517-1532
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676392
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676392
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1517-1532




Template-Type: ReDIF-Article 1.0
Author-Name: Tomasz Brodzicki
Author-X-Name-First: Tomasz
Author-X-Name-Last: Brodzicki
Author-Name: Tomasz Jurkiewicz
Author-X-Name-First: Tomasz
Author-X-Name-Last: Jurkiewicz
Author-Name: Laura Márquez-Ramos
Author-X-Name-First: Laura
Author-X-Name-Last: Márquez-Ramos
Author-Name: Stanisław Umiński
Author-X-Name-First: Stanisław
Author-X-Name-Last: Umiński
Title: Patterns and determinants of the horizontal and vertical intra-industry trade of regions: panel analysis for Spain & Poland
Abstract: 
 Most of the empirical studies in the literature on intra-industry trade are conducted at the country level. Countries, however, differ in terms of granularity and internal heterogeneity. In the present study we empirically identify the determinants of the overall IIT as well as its horizontal and vertical components in the trade of Spanish and Polish NUTS-2 regions with all existing trade partners over the period 2005–2014. In order to obtain unbiased results, we utilize a semi-mixed effect model, estimated with the PPML method. We estimate the models jointly for all Spanish and Polish regions and then disjointly in a comparative manner – in order to identify incongruities of reaction to the various factors investigated. These include both traditional factors and a number of unorthodox factors such as regional path dependence, quality of regional institutions, the core or peripheral status of the reporting region.
Journal: Applied Economics
Pages: 1533-1552
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676871
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676871
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1533-1552




Template-Type: ReDIF-Article 1.0
Author-Name: Geeta Duppati
Author-X-Name-First: Geeta
Author-X-Name-Last: Duppati
Author-Name: Narendar V. Rao
Author-X-Name-First: Narendar V.
Author-X-Name-Last: Rao
Author-Name: Neha Matlani
Author-X-Name-First: Neha
Author-X-Name-Last: Matlani
Author-Name: Frank Scrimgeour
Author-X-Name-First: Frank
Author-X-Name-Last: Scrimgeour
Author-Name: Debasis Patnaik
Author-X-Name-First: Debasis
Author-X-Name-Last: Patnaik
Title: Gender diversity and firm performance: evidence from India and Singapore
Abstract: 
 This study investigates if gender diversity on boards is an effective driver of financial performance. For this purpose, this study choses two countries, one of which has the soft law approach (Singapore) while the other has mandatory requirements (India) on corporate boards gender diversity. By doing so, it examines if there is a comparability between the listed firms of the two countries. Our results suggest that the gender diversity has a positive and significant effect on the financial performance of the firms of both the countries. Although, the gender diversity of the two countries does not seem to affect the growth opportunities of both the countries. Further, our results indicate that the board characteristics affect the performance positively and significantly when the sample is divided into five quantiles for the firms in these two countries. These findings have implications to the managerial decision making and relevance to stewardship theory and resource dependency theory.
Journal: Applied Economics
Pages: 1553-1565
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676872
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676872
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1553-1565




Template-Type: ReDIF-Article 1.0
Author-Name: Belayet Hossain
Author-X-Name-First: Belayet
Author-X-Name-Last: Hossain
Title: Maternal empowerment and child malnutrition in Bangladesh
Abstract: 
 The study examines the importance of maternal empowerment in reducing the prevalence of child malnutrition in Bangladesh. Maternal empowerment is measured by a composite index based on four proxy variables that promote maternal empowerment. Factor analysis technique is used in constructing empowerment index. Ordered probit models are specified and estimated using national-level household survey data. Maternal empowerment is found to be the third-most important predictor of child malnutrition in Bangladesh, preceded by maternal endowment and child characteristics. Household characteristics such as partner’s level of education and household income are also associated with child malnutrition. The study has a number of policy implications to address maternal empowerment and child malnutrition. Public policy should focus on factors of maternal empowerment and investment in maternal health in order to improve the health of the next generation.
Journal: Applied Economics
Pages: 1566-1581
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676873
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676873
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1566-1581




Template-Type: ReDIF-Article 1.0
Author-Name: Sean Balliew
Author-X-Name-First: Sean
Author-X-Name-Last: Balliew
Author-Name: Timothy Mathews
Author-X-Name-First: Timothy
Author-X-Name-Last: Mathews
Author-Name: Joshua C. Hall
Author-X-Name-First: Joshua C.
Author-X-Name-Last: Hall
Title: Measuring economic freedom: an alternative functional specification and subsequent ranking
Abstract: 
 The widely cited Economic Freedom of the World index is an aggregate measure of economic freedom calculated by using a simple arithmetic mean of scores over five sub-dimensions: (1) size of government, (2) legal structure and security of property rights, (3) access to sound money, (4) freedom to trade internationally and (5) regulation of credit, labour and business. The use of a simple arithmetic mean implicitly assumes that the different sub-dimensions are ‘perfect substitutes’. To explore the implications of this assumption, we compute an aggregate economic freedom score and ordinal ranking of countries, by taking a geometric mean of the five sub-dimensions. For this alternative specification, the marginal impact of each sub-dimension on the aggregate score is no longer independent of the other sub-dimension scores. Consequently, countries with inconsistent levels of economic freedom across sub-dimensions are ‘punished’ to a greater degree than are countries with less variability across sub-dimensions. Our alternative specification results in considerable movement in terms of country rankings. The geometric mean measure does not appear to explain economic growth as well as the arithmetic mean measure.
Journal: Applied Economics
Pages: 1582-1591
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676874
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676874
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1582-1591




Template-Type: ReDIF-Article 1.0
Author-Name: Jacqueline Craig
Author-X-Name-First: Jacqueline
Author-X-Name-Last: Craig
Author-Name: Charles C. Moul
Author-X-Name-First: Charles C.
Author-X-Name-Last: Moul
Author-Name: Gregory T. Niemesh
Author-X-Name-First: Gregory T.
Author-X-Name-Last: Niemesh
Title: Do menu-labelling laws translate into results? The disparate impacts on population obesity and diabetes
Abstract: 
 Despite their joint importance to health care costs, the nature of the relationship between obesity and diabetes is contested within the medical literature. We leverage California’s 2008 law mandating menu-labelling at restaurants to confirm that the law reduced obesity compared to the experience of counties not subject to such regulation. Despite this reduction in obesity, we find no California-specific reduction in the prevalence of diabetes and we find a significantly positive impact on the likelihood of new diabetes diagnoses. We evaluate a range of potential hypotheses that rationalize the divergent findings on obesity and diabetes.
Journal: Applied Economics
Pages: 1592-1605
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676875
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676875
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1592-1605




Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: J.R. Clark
Author-X-Name-First: J.R.
Author-X-Name-Last: Clark
Title: The tax-rate induced bond substitution hypothesis and the traditional textbook treatment of the relationship between tax-free and taxable bond yields
Abstract: 
 This empirical study posits and tests the ‘tax-rate induced bond substitution hypothesis,’ wherein the propensity for bond buyers to substitute tax-exempt municipal bonds for taxable bonds in their portfolios is hypothesized to be an increasing function of the maximum federal personal income tax rate. This substitution acts to elevate the real interest rate yield on taxable bonds while diminishing it on tax-exempt bonds, ceteris paribus. Two measures of real interest rates are included in the present analysis, ex post real interest rate and ex ante real interest rate. Empirical estimations for the 1981–2018 period provide strong support for the hypothesis. They reveal that the real interest rate yield on high-grade tax-exempt municipal bonds is a decreasing function of the maximum marginal federal personal income tax, whereas the real interest rate yield on taxable ten-year Treasury notes is an increasing function of that same tax rate. We examine the implications of this study and the information underlying it for the traditional formulaic textbook treatment of the relationship between yields on bonds whose interest rate payments are taxable versus those whose interest rate payments are tax exempt and find it is not as dependable as the textbooks would have us believe.
Journal: Applied Economics
Pages: 1606-1616
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676876
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676876
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1606-1616




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Akhtaruzzaman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Akhtaruzzaman
Author-Name: Christopher Hajzler
Author-X-Name-First: Christopher
Author-X-Name-Last: Hajzler
Author-Name: P. Dorian Owen
Author-X-Name-First: P. Dorian
Author-X-Name-Last: Owen
Title: Does institutional quality resolve the Lucas Paradox?
Abstract: 
 The Lucas Paradox observes that capital flows predominantly to relatively rich countries, contradicting the neoclassical prediction that it should flow to poorer capital-scarce countries. In an influential study, Alfaro, Kalemli-Ozcan, and Volosovych (AKV) argue that cross-country variation in institutional quality can fully explain the Paradox, contending that if institutional quality is included in regression models explaining international capital inflows, a country’s level of economic development is no longer statistically significant. We replicate AKV’s results using their cross-sectional IFS capital flow data. Motivated by the importance of conducting inference in statistically adequate models, we focus on misspecification testing of alternative functional forms of their empirical model of capital flows. We show that their resolution of the Paradox relies on inference in a misspecified model. In models that do not fail basic misspecification tests, even though institutional quality is a significant determinant of capital inflows, a country’s level of economic development also remains a significant predictor. The same conclusions are reached using an extended dataset covering more recent IFS international capital flow data, first-differenced capital stock data and additional controls.
Journal: Applied Economics
Pages: 455-474
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321840
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321840
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:455-474




Template-Type: ReDIF-Article 1.0
Author-Name: Chunzhou Mu
Author-X-Name-First: Chunzhou
Author-X-Name-Last: Mu
Author-Name: Richard De Abreu Lourenco
Author-X-Name-First: Richard
Author-X-Name-Last: De Abreu Lourenco
Author-Name: Kees van Gool
Author-X-Name-First: Kees
Author-X-Name-Last: van Gool
Author-Name: Jane Hall
Author-X-Name-First: Jane
Author-X-Name-Last: Hall
Title: Is low-priced primary care bad for quality? Evidence from Australian general practice
Abstract: 
 We examine whether patients’ perceptions of general practitioner (GP) care varies by the price paid for consultations. Australian consumer survey data from 2275 individuals were used to analyse the relationship between price and patient experience of GP care. Using both standard models for count data and a latent class model that distinguishes between patients with high- and low-quality experiences, we find no evidence that lower prices have a negative impact on patients’ perceptions of GP quality. Nevertheless, some patient characteristics such as age, gender and health status play a significant role in quality-of-care perceptions. The results show that Australian patients have not had to compromise GP quality, as expressed in terms of patient experience, when seeking low-priced care. This supports the view that there are sufficient checks and balances on the GP sector in Australia to ensure positive patient experiences even for low-cost GP consultations.
Journal: Applied Economics
Pages: 475-491
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324610
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324610
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:475-491




Template-Type: ReDIF-Article 1.0
Author-Name: Yan-Leung Cheung
Author-X-Name-First: Yan-Leung
Author-X-Name-Last: Cheung
Author-Name: Yin Dang
Author-X-Name-First: Yin
Author-X-Name-Last: Dang
Author-Name: Ping Jiang
Author-X-Name-First: Ping
Author-X-Name-Last: Jiang
Author-Name: Tong Lu
Author-X-Name-First: Tong
Author-X-Name-Last: Lu
Author-Name: Weiqiang Tan
Author-X-Name-First: Weiqiang
Author-X-Name-Last: Tan
Title: Does the market care about investor protection practices in China?
Abstract: 
 This study develops a scorecard with which to measure the investor protection practices of major listed firms in China during 2007–2010. We use time-series data to examine the relationship between the change in firm investor protection practices and market performance. Our results show that firms exhibiting improvements in investor protection practices manifest a subsequent increase in buy-and-hold abnormal returns. The results further indicate that the changes in the sub-index have different effects on a firm’s future performance. Shareholder rights to be rewarded seem to have the most significant and positive effect on a firm’s future performance for both local and international investors. Moreover, international investors pay attention to their rights to information. Our results provide evidence in support of the notion that the market does care about firm’s investor protection practices. The findings are robust to other measures of firm performance.
Journal: Applied Economics
Pages: 492-509
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324612
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324612
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:492-509




Template-Type: ReDIF-Article 1.0
Author-Name: Anirban Sanyal
Author-X-Name-First: Anirban
Author-X-Name-Last: Sanyal
Author-Name: Abhiman Das
Author-X-Name-First: Abhiman
Author-X-Name-Last: Das
Title: Nowcasting sales growth of manufacturing companies in India
Abstract: 
 The performance of private corporate sector is used as an important demand indicator for monetary policy making. As these data are received with a lag, assessing and monitoring of corporate sales on a real-time basis poses a significant challenge to policy makers in India. In this context, this article attempts to nowcast quarterly sales growth of Indian manufacturing companies and GDP growth of India using dynamic factor modelling framework. A multiple-level framework through turning point analysis and elastic net structure is used to overcome the overfitting problem during variable selection. Empirical results show improvement in forecast accuracy for one quarter ahead nowcast using 3-factor and 4-factor models over the benchmark model. However, absolute dominance of 3-factor models over 4-factor models was not established. As such, the article has proposed a forecast combination technique to nowcast sales growth of manufacturing companies in India.
Journal: Applied Economics
Pages: 510-526
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324613
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324613
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:510-526




Template-Type: ReDIF-Article 1.0
Author-Name: Sasiwimon Warunsiri Paweenawat
Author-X-Name-First: Sasiwimon Warunsiri
Author-X-Name-Last: Paweenawat
Author-Name: Robert McNown
Author-X-Name-First: Robert
Author-X-Name-Last: McNown
Title: A synthetic cohort analysis of female labour supply: the case of Thailand
Abstract: 
 This study analyzes trends and patterns in employment, hours worked, and women’s wages for Thai women, and relations among these variables in models of female labour supply. Labour supply behaviour of Thai women is investigated with synthetic cohort data defined by age, year of birth, and level of educational attainment, constructed from annual labour force surveys from 1985 to 2004. According to pseudo-panel estimates, wage increases lead to a reduction in hours worked, but also an increase in the employment/population ratio, with elasticity estimates that are robust across a variety of specifications. Estimates based on disaggregation by marital status show that marriage provides protection against wage decreases, allowing married women greater choice between hours of work and other household activities. Alternative disaggregations find that younger cohorts of women and those with the highest education show the greatest (positive) response of the employment rate to wage changes, leading to a future Thai labour force with more women and higher educational attainment.
Journal: Applied Economics
Pages: 527-544
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324614
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324614
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:527-544




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Baldin
Author-X-Name-First: Andrea
Author-X-Name-Last: Baldin
Author-Name: Trine Bille
Author-X-Name-First: Trine
Author-X-Name-Last: Bille
Title: Modelling preference heterogeneity for theatre tickets: a discrete choice modelling approach on Royal Danish Theatre booking data
Abstract: 
 This article analyses the behavioural choice for theatre tickets using a rich data set for 2010–2013 from the sale system of the Royal Danish National Theatre. A consumer who decides to attend a theatre production faces multiple sources of price variation that involves a choice by the consumer among different ticket alternatives. Three modelling approaches are proposed in order to model ticket purchases: conditional logit with socio-demographic characteristics, nested logit and latent class. These models allow us explicitly to take into account consumers’ preference heterogeneity with respect to the attributes associated with each ticket alternative (quality of the seat and day of the performance). In addition, the willingness to pay of choice attributes is estimated. Final results suggest that customers’ characteristics in terms of age and frequency of theatre attendance characterize different patterns of behaviour in the choice of theatre ticket.
Journal: Applied Economics
Pages: 545-558
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1335386
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1335386
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:545-558




Template-Type: ReDIF-Article 1.0
Author-Name: Hela Namouri
Author-X-Name-First: Hela
Author-X-Name-Last: Namouri
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Zied Ftiti
Author-X-Name-First: Zied
Author-X-Name-Last: Ftiti
Author-Name: Néjib Hachicha
Author-X-Name-First: Néjib
Author-X-Name-Last: Hachicha
Title: Threshold effect in the relationship between investor sentiment and stock market returns: a PSTR specification
Abstract: 
 This article verifies whether the hypothesis of heterogeneous agent modelling and the behavioural heterogeneity framework can reproduce recent stylized facts regarding stock markets (e.g. the 1987 crash, internet bubble, and subprime crisis). To this end, we investigate the relationship between investor sentiment and stock market returns for the G7 countries from June 1987 to February 2014. We propose an empirical non-linear panel data specification based on the panel switching transition model to capture the investor sentiment-stock return relationship, while enabling investor sentiment to act asymmetrically, non-linearly, and time varyingly according to the market state and investor attitude towards risk. Our findings are twofold. First, we show that the hypotheses of efficiency, rationality, and representative agent do not hold in reproducing stock market dynamics. Second, investor sentiment affects stock returns significantly and non-linearly, but its effects vary with the market conditions. Indeed, the market appears predominated by fundamental investors in the first regime. In the second regime, investor sentiment effect is positively activated, increasing stock returns; however, when their overconfidence sentiment exceeds some threshold, this effect becomes inverse in the third regime for a high threshold level of market confidence and investor over-optimism.
Journal: Applied Economics
Pages: 559-573
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1335387
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1335387
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:559-573




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Pierre Fraichot
Author-X-Name-First: Jean Pierre
Author-X-Name-Last: Fraichot
Title: Study of the effect of a Financial Transaction Tax on the corporate cost of capital
Abstract: 
 We study the impact of a Financial Transaction Tax (FTT or Tobin Tax) on the corporate cost of capital. We consider the results on the impact of transaction costs on implied volatility and then use the utility maximization of a market-maker and its asymptotic solution. The FTT impact on volatility, in highly liquid equity option markets, is within two decimals (‘the tick value’) and is insignificant. The volatility impact is considerable for illiquid option markets especially long-dated equity options, used for the hedging of credit default swaps (CDS). The credit spread increase is computed using a structural model, and amounts between 30 and 60 basis points (b.p). per annum, for 5–20 year maturities, and a volatility level of 30%. The impact decreases with the corporation leverage ratio. We calibrate from the CDS market the implied volatility for six European corporations and find an increase in spreads by up to 60%. For a corporation with a 343 b.p. 5-year CDS spread, the increase amounts to 174 b.p. On the basis of this sample, the impact we find is between 5 and 20 times higher than the one computed in the study of Lendvai et al. which has been used by European Union authorities to assess the impact on the cost of capital.
Journal: Applied Economics
Pages: 5951-5961
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1363864
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363864
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5951-5961




Template-Type: ReDIF-Article 1.0
Author-Name: Diego Víctor de Mingo-López
Author-X-Name-First: Diego Víctor
Author-X-Name-Last: de Mingo-López
Author-Name: Juan Carlos Matallín-Sáez
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Matallín-Sáez
Title: Investing in mutual funds: the determinants of implied and actual net cash flows
Abstract: 
 Estimating the fund investors’ demand plays an important role in the mutual fund management. In this line, mutual fund demand can be measured as the total net cash flows experienced by the fund during a period. Due to a lack of the data for inflows and outflows in some countries and databases, many authors estimate the net cash flows using fund size and return information. This rough measure, although being a good approximation, implicitly assumes an error in its calculation. For a sample of 2985 US open-end funds, we find evidence that estimating this implied fund flows, the error generated is higher for smaller funds, funds with higher returns, and for those experiencing higher levels of inflows or outflows. This lack of precision leads to a distortion in the estimation of the effect of some determinants on the mutual fund demand, especially when longer periods are considered when constructing the net cash flows.
Journal: Applied Economics
Pages: 5962-5970
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1366641
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366641
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5962-5970




Template-Type: ReDIF-Article 1.0
Author-Name: Johann Fuchs
Author-X-Name-First: Johann
Author-X-Name-Last: Fuchs
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Long-term unemployment and labour force participation: a decomposition of unemployment to test for the discouragement and added worker hypotheses
Abstract: 
 We sharpen tests for ‘discouragement’ and ‘added worker’ effects by splitting the explanatory variable – the unemployment rate – into a short-term component and a long-term component. While short-term unemployment (STU) might not result in additional workers on a large scale, long-term unemployment (LTU) reduces household income more, increasing the need for additional income. On the other hand, it may discourage older workers for psychological and sociological reasons. Applying our model to the German labour market, these hypotheses could be confirmed. Even for men, about whom only a few empirical studies on this issue are available, distinguishing between STU and LTU reveals added worker as well as discouragement effects.
Journal: Applied Economics
Pages: 5971-5982
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1368991
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368991
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5971-5982




Template-Type: ReDIF-Article 1.0
Author-Name: Gaetano Lisi
Author-X-Name-First: Gaetano
Author-X-Name-Last: Lisi
Title: Homeownership and new entrepreneurs: first empirical evidence of a bidirectional interaction
Abstract: 
 Literature linking housing and professional choices focuses on the supply side of the labour market (the search for a job as employee), thus considering the unemployment rate as the only measure of labour market outcomes. Indeed, the usually neglected link between homeownership and entrepreneurship is equally important for assessing labour market performance. This empirical article represents one of the first attempts to test the interplay between homeownership and (new) entrepreneurs. Effectively, using a panel data analysis in Italy, we find a first empirical evidence of a positive and bidirectional interaction between homeownership and new entrepreneurs (precisely, small businesses and the self-employed).
Journal: Applied Economics
Pages: 5983-5991
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1368996
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368996
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5983-5991




Template-Type: ReDIF-Article 1.0
Author-Name: Ramzi Ben-Abdallah
Author-X-Name-First: Ramzi
Author-X-Name-Last: Ben-Abdallah
Author-Name: Michèle Breton
Author-X-Name-First: Michèle
Author-X-Name-Last: Breton
Title: An ex-post analysis of the CME Group’s solution to the 5-year gap issue
Abstract: 
 In early 2001, the US Department of the Treasury suspended the issuance of 30-year bonds, and then resumed issuing its long paper in early 2006. As a result, there was a 5-year gap in the baskets deliverable into US T-Bond futures contracts expiring before 2016. In 2013, the CME Group raised the issue that grades contending for cheapest-to-deliver status were becoming significantly isolated from the rest of the basket because of this maturity gap. The aim of this article is to provide an ex-post assessment of the approach chosen by the CME Group to address this so-called ‘5-year gap issue’ and to compare its efficiency with that of an alternative solution that was not considered at the time.
Journal: Applied Economics
Pages: 5992-6002
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1368997
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368997
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5992-6002




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Ventosa-Santaulària
Author-X-Name-First: Daniel
Author-X-Name-Last: Ventosa-Santaulària
Author-Name: Manuel Gómez-Zaldívar
Author-X-Name-First: Manuel
Author-X-Name-Last: Gómez-Zaldívar
Author-Name: Pedro Chávez
Author-X-Name-First: Pedro
Author-X-Name-Last: Chávez
Title: On the persistence of prices in Mexico: a fractional integration approach
Abstract: 
 A relevant yet often overlooked characteristic of the inflation rate is its mean-reverting property. If a series has this feature, shocks eventually dissipate, whereas if it does not, they have a permanent effect on the series. The usual I(1) versus I(0) dichotomy in time-series econometrics goes only so far towards disentangling this issue. By employing a methodology that estimates the persistence of inflation by allowing (i) fractional integration and (ii) persistence and level shifts in the series, we aim to define whether it is stationary and/or mean reverting and, if so, during which periods. The results of our analysis for the period 1987–2015 are threefold: firstly, inflation in the eighties and nineties should be seen as a highly persistent yet mean-reverting process (not a random walk); secondly, inflation remained mean reverting, though became a short-memory (less persistent) process around the date of the implementation of the inflation-targeting framework of 2001; thirdly, during the later phase, the level of inflation also decreased and is now within the inflation target range set by Banco de México, namely 3 per cent with an interval of ±1 percentage point.
Journal: Applied Economics
Pages: 6014-6023
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1371841
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1371841
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:6014-6023




Template-Type: ReDIF-Article 1.0
Author-Name: Deniz Dilan Karaman Örsal
Author-X-Name-First: Deniz Dilan
Author-X-Name-Last: Karaman Örsal
Title: Analysing money demand relation for OECD countries using common factors
Abstract: 
 This article investigates the existence of a long-run money demand relation for a panel data consisting of 13 OECD countries. The analysis is based on the most recent data. The existence of a long-run money demand relation is tested with two new meta-analytic panel cointegrating rank tests which are robust to cross-sectional dependence. Cross-sectional dependency in the data generating process is modelled by unobserved common factors. The observed data are decomposed into idiosyncratic and common components, and these two components are analysed separately to find out the driving forces of the long-run stationary relationship. The evidence shows that the long-run money demand relation is driven by the cross-unit cointegration. Finally, the long-run relation is estimated by taking the common factors into account.
Journal: Applied Economics
Pages: 6003-6013
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1371842
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1371842
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:6003-6013




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: Applied Economics
Pages: ebi-ebi
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1385986
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1385986
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:ebi-ebi




Template-Type: ReDIF-Article 1.0
Author-Name: Woo-Sik Sohn
Author-X-Name-First: Woo-Sik
Author-X-Name-Last: Sohn
Title: Discount rate and the social cost of carbon dioxide: a Korean forecast
Abstract: 
 This paper is to forecast the Korean long-term social discount rate of carbon dioxide (SDRC) and the social cost of carbon dioxide (SCC). It is estimated using the Ramsey function, savings behavior, socio-economic standard, exponential function, expected value and so on. Our findings are as follows. First, the economics of future climate change can be determined using the SDRC. Second, the SDRC declines over time. Finally, forecast shows that the Korean SDRC declines over time and the Korean SCC increases over time.
Journal: Applied Economics
Pages: 3436-3450
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581907
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581907
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3436-3450




Template-Type: ReDIF-Article 1.0
Author-Name: Kayuna Nakajima
Author-X-Name-First: Kayuna
Author-X-Name-Last: Nakajima
Title: Homesickness and repeated migration
Abstract: 
 This paper presents a dynamic structural model of migration that is designed to help explain the migration behaviour of undocumented Mexican immigrants in the US. Its key feature – which I call ‘homesickness’ – is a duration-dependent disutility from living abroad that keeps increasing while a migrant stays abroad and can be reset to zero only by returning to their home country. I estimate the model using data primarily from the Mexican Migration Project Survey and find that the model is capable of explaining, among other things, the fact that: (i) a non-negligible number of Mexican immigrants in the US return home after earning very little; (ii) these ‘unsuccessful’ immigrants are more likely to re-enter the US at a later date; and (iii) such ‘unsuccessful’ returns are more prevalent among immigrants who left their wives behind in Mexico. These facts are not easily reconciled with existing models of migration that do not feature homesickness.
Journal: Applied Economics
Pages: 3451-3464
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581908
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581908
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3451-3464




Template-Type: ReDIF-Article 1.0
Author-Name: Shujie Yao
Author-X-Name-First: Shujie
Author-X-Name-Last: Yao
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Author-Name: Feng Wang
Author-X-Name-First: Feng
Author-X-Name-Last: Wang
Author-Name: Jinghua Ou
Author-X-Name-First: Jinghua
Author-X-Name-Last: Ou
Title: Regional economic growth and the role of high-speed rail in China
Abstract: 
 Rapid development of High-speed railways (HSR) in China has attracted serious research interest. This paper proposes an endogenous economic growth model to explain how and why HSR may lead to faster economic growth and regional convergence in China using data from 285 cities in 2010–2014. TSLS estimation suggests that HSR has a powerful impact on urban economic growth and regional convergence. It suggests that HSR was a potent driver responsible for the sustainable and steady economic expansion of the Chinese regions in the aftermath of the world financial crisis.
Journal: Applied Economics
Pages: 3465-3479
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581910
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581910
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3465-3479




Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Croce
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Croce
Author-Name: Andrea Ricci
Author-X-Name-First: Andrea
Author-X-Name-Last: Ricci
Author-Name: Giuliana Tesauro
Author-X-Name-First: Giuliana
Author-X-Name-Last: Tesauro
Title: Pensions reforms, workforce ageing and firm-provided welfare
Abstract: 
 This paper investigates the impact of an exogenous increase in the legal retirement age on the firms’ propensity to provide welfare services voluntarily to their employees. To this purpose we exploit a unique information derived from the Rilevazione su Imprese e Lavoro (RIL), a survey conducted in 2015 on a large and representative sample of Italian firms. Applying different regression models we show that firms which were forced to give up previously planned hirings because of the Law 201/2011 (the so-called ‘Fornero pension reform’), increased the probability of providing welfare services at workplace. By referring to the sociological, human resource management and economic literature we then argue that a sudden increase in the legal retirement age may motivate the employers to establish welfare schemes as a way to cope with an ageing workforce. Our findings also hold when propensity score matching methods are used in order to control for sample selection issues.
Journal: Applied Economics
Pages: 3480-3497
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581911
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581911
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3480-3497




Template-Type: ReDIF-Article 1.0
Author-Name: Mary Doidge
Author-X-Name-First: Mary
Author-X-Name-Last: Doidge
Author-Name: Hongli Feng
Author-X-Name-First: Hongli
Author-X-Name-Last: Feng
Author-Name: David A. Hennessy
Author-X-Name-First: David A.
Author-X-Name-Last: Hennessy
Title: Rationality of weather predictions and insurance purchases: testing the gambler’s and hot hand fallacies
Abstract: 
 Deviations from the rational behaviour assumed in many economic models have been found in a variety of settings. Two such deviations, the gambler’s and hot hand fallacies have been found in lab settings, as well as in consequential real-world decisions. Previous economic experiments have shown that the behaviour of professionals can differ from that of the general population. In this paper, we use data from two experiments conducted with a particular group of professionals who make yearly high-stakes decisions in the face of uncertain weather and market conditions: agricultural producers. In the experiments, participants were asked to make predictions about the coming year’s weather and market conditions and make decisions in a familiar decision context. Results indicate evidence of the gambler’s fallacy, such that participants were less likely to predict a good outcome if the previous outcome(s) were good. We also observe that participants were more likely to gamble if a previous gamble was successful, but find no impact on two successful gambles. These combined results indicate that even professionals with many years of experience can exhibit behaviours that deviate from those assumed by classical models.
Journal: Applied Economics
Pages: 3498-3515
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581913
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581913
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3498-3515




Template-Type: ReDIF-Article 1.0
Author-Name: Chunyang Wang
Author-X-Name-First: Chunyang
Author-X-Name-Last: Wang
Author-Name: Haiyang Zhang
Author-X-Name-First: Haiyang
Author-X-Name-Last: Zhang
Author-Name: Liping Lu
Author-X-Name-First: Liping
Author-X-Name-Last: Lu
Author-Name: Xirui Wang
Author-X-Name-First: Xirui
Author-X-Name-Last: Wang
Author-Name: Ziyu Song
Author-X-Name-First: Ziyu
Author-X-Name-Last: Song
Title: Pollution and corporate valuation: evidence from China
Abstract: 
 Environmental pollution brings severe challenges in the context of a high growing economy of China. Pollution events bring serious ecological cost to the environment, direct costs from sanction, and reputational damage to the listed firms. We study the market reaction to 145 pollution events in China during Jan 2008 and Feb 2015. We find that the 2-day cumulative abnormal returns (CARs) of pollution events are significantly negative, which shows the disciplining effect of the stock market on the listed firms. In addition, pollution events with sanctions have lower CARs than otherwise, which are heterogeneous among different sanction types such as shutting down, fines and rectification. Finally, water pollution has lower CARs than other pollution types. We find that direct economic loss is an important reason for the negative market reactions to pollution events.
Journal: Applied Economics
Pages: 3516-3530
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581915
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581915
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3516-3530




Template-Type: ReDIF-Article 1.0
Author-Name: Pirmin Fessler
Author-X-Name-First: Pirmin
Author-X-Name-Last: Fessler
Author-Name: Alyssa Schneebaum
Author-X-Name-First: Alyssa
Author-X-Name-Last: Schneebaum
Title: The educational and labor market returns to preschool attendance in Austria
Abstract: 
 Preschool attendance is widely recognized as a key ingredient for later socioeconomic success, mothers’ labor market participation, and leveling the playing field for children from disadvantaged backgrounds. However, the empirical evidence for these claims is still relatively scarce, particularly in Europe. Using data from the 2011 Austrian European Union Statistics of Income and Living Conditions (EU-SILC), we contribute to this literature by studying the effects of having attended preschool for the adult Austrian population. We find strong and positive effects of preschool attendance on later educational attainment, the probability of working full time, hourly wages, and the probability that the mother is in the labor market. Full time workers at the bottom and the top of the distribution benefit less than those in the middle. Women in particular benefit more in terms of years of schooling and the probability of working full time. Other disadvantaged groups (second generation migrants; people with less educated parents) also often benefit more in terms of education and work.
Journal: Applied Economics
Pages: 3531-3550
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584368
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584368
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3531-3550




Template-Type: ReDIF-Article 1.0
Author-Name: Pu-yan Nie
Author-X-Name-First: Pu-yan
Author-X-Name-Last: Nie
Author-Name: Chan Wang
Author-X-Name-First: Chan
Author-X-Name-Last: Wang
Title: An analysis of cost-reduction innovation under capacity constrained inputs
Abstract: 
 This article focuses on duopoly cost-reduction innovation with the upstream input subjected to capacity constraints. By two-stage duopoly model, some interesting conclusions are achieved. Firstly, the higher efficiency firms invest the less in cost-reduction innovation and require the fewer resources under capacity constraints. Therefore, lower efficiency firms launch the lower price strategies. To our surprise, lower efficiency firms seem to be more aggressive both in innovation and in outputs. Secondly, symmetric firms&#x2019; innovation decreases with the total resources while asymmetric firms&#x2019; innovation increases with the total capacity. Finally, innovation gap decreases with both the total capacity and the degree of substitutability.
Journal: Applied Economics
Pages: 564-576
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1497850
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497850
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:564-576




Template-Type: ReDIF-Article 1.0
Author-Name: Yared Seid
Author-X-Name-First: Yared
Author-X-Name-Last: Seid
Title: The impact of learning first in mother tongue: evidence from a natural experiment in Ethiopia
Abstract: 
 This study explores the impact of mother-tongue instruction in early grades on the performance of students later after they switch to English instruction. Students in Ethiopia switch to English-instruction classrooms either in grade 5, 7, or 9 depending on the state in which they attend school. Typically, this switch is from mother-tongue to English instruction for language-majority students and from second-language to English instruction for language-minority students. As a result, the intensity of the impact of the switch to English instruction varies by language group. Exploiting these two plausibly exogenous sources of variations across states and language groups and using data from a school survey, we estimate triple-differences model. The estimate from our preferred specification suggests that learning first in mother tongue (in grades $$1 - 4$$1&#x2212;4) improves mathematics tests scores later (in grade 5) by 0.159 standard deviations, suggesting students taught first in their mother tongue learn in English better after they switch to English-instruction classrooms.
Journal: Applied Economics
Pages: 577-593
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1497852
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497852
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:577-593




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Larcher
Author-X-Name-First: Kevin
Author-X-Name-Last: Larcher
Author-Name: Jaebeom Kim
Author-X-Name-First: Jaebeom
Author-X-Name-Last: Kim
Author-Name: Youngju Kim
Author-X-Name-First: Youngju
Author-X-Name-Last: Kim
Title: Uncertainty shocks and asymmetric dynamics in Korea: a non-linear approach
Abstract: 
 This study investigates the impact of uncertainty shocks on macroeconomic activity in Korea. For this purpose, a Smooth Transition VAR model is employed to document the state-dependent dynamics of two distinct types of uncertainty shocks, namely, financial market based and news-based. When non-linearity is allowed to play a role in our model, quantitatively very different asymmetric dynamics are observed. Following inflation targeting, the responses tend to be smoother and less pronounced. Our empirical results support the view that the link between uncertainty and macroeconomic activity is clear over both recessions and expansions. Furthermore, the impact of uncertainty shocks is more pronounced when economic activity is depressed especially after shocks originate from the financial market, and not from news-based policy uncertainty in Korea.
Journal: Applied Economics
Pages: 594-610
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1502869
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502869
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:594-610




Template-Type: ReDIF-Article 1.0
Author-Name: Denis Yongmin Joe
Author-X-Name-First: Denis Yongmin
Author-X-Name-Last: Joe
Author-Name: Dukhee Jung
Author-X-Name-First: Dukhee
Author-X-Name-Last: Jung
Author-Name: Frederick Dongchuhl Oh
Author-X-Name-First: Frederick Dongchuhl
Author-X-Name-Last: Oh
Title: Owner-managers and firm performance during the asian and global financial crises: evidence from Korea
Abstract: 
 We examine the performance of the Korean owner-managers during the 1997&#x2212;1998 Asian financial crisis and the 2008&#x2212;2009 global financial crisis to establish whether they overcome the unexpected exterior shocks better than employed managers. We find that the owner-managers record a significantly greater performance during the crises, and especially during the latter period. Moreover, our results suggest that such a tendency comes from the owner-managers&#x2019; superior investment decisions. Our paper thus highlights the role of owner-managers by studying their performance during the Korean economic crisis periods. (JEL G01, G32, G34)
Journal: Applied Economics
Pages: 611-623
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1502870
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502870
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:611-623




Template-Type: ReDIF-Article 1.0
Author-Name: Uche Eseosa Ekhator-Mobayode
Author-X-Name-First: Uche Eseosa
Author-X-Name-Last: Ekhator-Mobayode
Author-Name: Abraham Abebe Asfaw
Author-X-Name-First: Abraham
Author-X-Name-Last: Abebe Asfaw
Title: The child health effects of terrorism: evidence from the Boko Haram Insurgency in Nigeria
Abstract: 
 This study examines the effect of terrorism on height-for-age z-scores, weight-for-age z-scores, weight-for-height z-scores, stunting, and wasting. Using the Boko Haram Insurgency, it compares outcomes in Boko Haram high-active and low-active areas. A difference-in-difference and regression model identifies the extensive and intensive margin effects respectively. The study uses data from the Nigeria Demographic and Health Survey and the Global Terrorism Database. The results suggest that the Boko Haram Insurgency reduces weight-for-age and weight-for-height z-scores and increases the probability of wasting. The evidence suggests that policies targeting healthcare services may mitigate the long-term impacts of the Boko Haram Insurgency on human capital production.
Journal: Applied Economics
Pages: 624-638
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1502871
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502871
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:624-638




Template-Type: ReDIF-Article 1.0
Author-Name: Paul McNamee
Author-X-Name-First: Paul
Author-X-Name-Last: McNamee
Author-Name: Silvia Mendolia
Author-X-Name-First: Silvia
Author-X-Name-Last: Mendolia
Title: Changes in health-related quality of life: a compensating income variation approach
Abstract: 
 This paper investigates the relationship between negative changes in health and life satisfaction, using a sample from the Household, Income and Labour Dynamics of Australia Survey. We use panel data models and estimate the life satisfaction impact of several different changes in health status to calculate the Compensating Income Variation (CIV) of them. Our work innovates with respect to the existing literature by using a more robust CIV method that takes account of the potential measurement error in income. Further, we produce the first set of monetary values for health losses using SF-6D utility values, one of the main measures used to estimate and value health change for economic evaluation. We show that negative changes in SF-6D are significantly associated with a reduction in life satisfaction, and the starting point matters: a drop of 0.1 in SF-6D score is associated with a decrease of 0.12 points in life satisfaction if the starting utility value is 0.8, but the effect is 100% higher if the SF-6D starting point is 0.7. More generally, we find that a 0.1 deterioration in SF-6D has a strong association with life satisfaction and that the CIV value is substantial (over US$ 120,000).
Journal: Applied Economics
Pages: 639-650
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1504160
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1504160
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:639-650




Template-Type: ReDIF-Article 1.0
Author-Name: Marcello Miccoli
Author-X-Name-First: Marcello
Author-X-Name-Last: Miccoli
Author-Name: Stefano Neri
Author-X-Name-First: Stefano
Author-X-Name-Last: Neri
Title: Inflation surprises and inflation expectations in the Euro area
Abstract: 
 In the second half of 2012, euro area inflation started declining and reached historical lows at the end of 2014. Market-based measures of inflation expectations also declined to unprecedented levels. During this disinflationary period, inflation releases have often surprised analysts on the downside. We provide evidence that inflation &#x2018;surprises&#x2019; have significant effects on inflation expectations. The sensitivity of inflation expectations to the surprises, which has varied over time, disappeared after the introduction of the Asset Purchase Programme by the European Central Bank.
Journal: Applied Economics
Pages: 651-662
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1506085
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1506085
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:651-662




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Khang
Author-X-Name-First: Kenneth
Author-X-Name-Last: Khang
Author-Name: Steven Byers
Author-X-Name-First: Steven
Author-X-Name-Last: Byers
Title: The effect of lender and loan type on a borrowing firm’s equity return
Abstract: 
 Past empirical studies appear to support the idea that banks and finance companies do not differ in their ability to resolve adverse selection problems associated with issuing new debt. In this article, we find there is a difference. More specifically, using an event study we find larger abnormal returns for secured loan disclosures to lower quality borrowers when the lender is a finance company versus a bank. This suggests the market views finance companies as more effective than banks in evaluating/monitoring lower quality borrowers obtaining secured loans. We posit this is due to finance companies’ greater expertise in this type of lending, resulting from specialization. Our findings extend the literature on how lender identity can influence signals about firm value from loan disclosures. Our results also support recent findings that positive abnormal returns to borrowing firms may not be a general feature across the loan population, but may be restricted to smaller, lower quality borrowers. Finally, we are the first to provide evidence that the market takes loan type into account, not just lender and borrower type, when considering the information embedded in loan disclosures.
Journal: Applied Economics
Pages: 4099-4115
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276272
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276272
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4099-4115




Template-Type: ReDIF-Article 1.0
Author-Name: Islam Hassouneh
Author-X-Name-First: Islam
Author-X-Name-Last: Hassouneh
Author-Name: Teresa Serra
Author-X-Name-First: Teresa
Author-X-Name-Last: Serra
Author-Name: Štefan Bojnec
Author-X-Name-First: Štefan
Author-X-Name-Last: Bojnec
Author-Name: José M. Gil
Author-X-Name-First: José M.
Author-X-Name-Last: Gil
Title: Modelling price transmission and volatility spillover in the Slovenian wheat market
Abstract: 
 Interdependence between first and second moments of producer and consumer wheat prices in Slovenia is assessed, in light of the recent major historical events that the country has undergone, as well as the recent rumours of cartel agreements between millers causing a decline in farm-gate prices, while leaving consumer prices untouched. A threshold vector error correction and multivariate generalized autoregressive conditional heteroscedasticity model with exogenous variables is applied. Results indicate that price-level adjustments mainly favour retailers by increasing their marketing margins. Important second-moment interactions are also identified. Increases in international wheat stocks reduce producer prices, while higher interest rates increase their instability.
Journal: Applied Economics
Pages: 4116-4126
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276273
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276273
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4116-4126




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Cook
Author-X-Name-First: Jonathan
Author-X-Name-Last: Cook
Title: Estimating the portion of technical analysts in a market
Abstract: 
 This article presents structural estimates of the portion of technical analysts in six markets. I find that the portion of technical analysts in the U.S. equity market has been decreasing since the 1970s. A simple asset pricing model predicts that both risk and return are increasing in the portion of technical analysts. This prediction is confirmed across stock market indexes for six countries.
Journal: Applied Economics
Pages: 4127-4137
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276274
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276274
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4127-4137




Template-Type: ReDIF-Article 1.0
Author-Name: Devon Gorry
Author-X-Name-First: Devon
Author-X-Name-Last: Gorry
Author-Name: Diana W. Thomas
Author-X-Name-First: Diana W.
Author-X-Name-Last: Thomas
Title: Regulation and the cost of childcare
Abstract: 
 Female labour market choices depend on the availability, affordability and quality of childcare. In this article, we evaluate different regulatory measures and their effect on both the quality and the cost of childcare. First, we analyse data on regulations and costs to estimate the effect of regulatory measures on the cost of childcare. Next, we summarize the existing literature on the effect of regulation on childcare quality. We find that regulation intended to improve quality often focuses on easily observable measures of the care environment that do not necessarily affect the quality of care but that do increase the cost. Thus, we find that the regulatory environment could be improved by eliminating costly measures that do not affect quality of care.
Journal: Applied Economics
Pages: 4138-4147
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276275
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276275
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4138-4147




Template-Type: ReDIF-Article 1.0
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Author-Name: Muhammad Azeem Qureshi
Author-X-Name-First: Muhammad Azeem
Author-X-Name-Last: Qureshi
Title: The impact of financial liberalization on capital structure adjustment in Pakistan: a doubly censored modelling
Abstract: 
 The purpose of the study is to explain adjustment rate towards target capital structure of Pakistani nonfinancial listed firms and to investigate the impact of financial liberalization (FL) on capital structure adjustment rate. We control for the unobserved heterogeneity and the fractional nature of adjustment rate by applying an unbiased dynamic panel fractional estimator on an unbalanced panel data of Pakistani nonfinancial firms listed during 1972–2010. We find that these firms adjust at an annual rate of 24–51% to reach their capital structure targets. We argue that in order to optimize the benefits of FL the government should strengthen financial as well as judicial institutions to enforce the creditors’ rights that will enable access to more options to Pakistani firms to raise cheaper external financing.
Journal: Applied Economics
Pages: 4148-4160
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276276
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276276
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4148-4160




Template-Type: ReDIF-Article 1.0
Author-Name: Bernardino Benito
Author-X-Name-First: Bernardino
Author-X-Name-Last: Benito
Author-Name: María-Dolores Guillamón
Author-X-Name-First: María-Dolores
Author-X-Name-Last: Guillamón
Author-Name: Ana-María Ríos
Author-X-Name-First: Ana-María
Author-X-Name-Last: Ríos
Title: The electoral budget cycle on municipal waste collection expenditure
Abstract: 
 This article analyses the determinants of municipal waste collection expenditure, specifically the effects of electoral cycles on municipal waste collection expenditure. We use a database with information on Spanish municipalities with more than 1000 inhabitants for the period 2002–2011. Our results reveal that incumbents adopt an opportunistic behaviour, increasing spending on waste in the preelection year and reducing it in the election and post-election years. Therefore, we confirm an electoral budget cycle on waste collection expenditures in Spain. Additionally, we find that the levels of income, unemployment and upper-level governments’ transfers have a positive impact on waste collection spending. Finally, population density, level of urbanization, average age of the population of the municipality and less fragmented governments negatively influence waste collection spending.
Journal: Applied Economics
Pages: 4161-4179
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276278
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276278
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4161-4179




Template-Type: ReDIF-Article 1.0
Author-Name: Dooyeon Cho
Author-X-Name-First: Dooyeon
Author-X-Name-Last: Cho
Author-Name: Dong-Eun Rhee
Author-X-Name-First: Dong-Eun
Author-X-Name-Last: Rhee
Title: Non-linear adjustments on the excess sensitivity of consumption with liquidity constraints
Abstract: 
 This article investigates the role of domestic credit markets in explaining the excess sensitivity of private consumption to disposable income using heterogeneous panel data of 19 OECD countries over the last two decades. We find that the degree of the excess sensitivity has decreased as the liquidity constraints of households have been alleviated: the estimated time-varying coefficients for the marginal propensity to consume vary between 0.16 for the countries with low liquidity constraints and 0.38 for those with high liquidity constraints. We also provide evidence that the excess sensitivity has been more prominent after the global financial crisis in some advanced countries, such as Japan, Spain, and the United States, where sharp deleveraging of households has been ongoing.
Journal: Applied Economics
Pages: 4180-4187
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276279
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276279
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4180-4187




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad A. Cheema
Author-X-Name-First: Muhammad A.
Author-X-Name-Last: Cheema
Author-Name: Gilbert V. Nartea
Author-X-Name-First: Gilbert V.
Author-X-Name-Last: Nartea
Title: Cross-sectional and time-series momentum returns: are Islamic stocks different?
Abstract: 
 We search for differences in both unconditional and conditional momentum returns of Islamic and Non-Islamic stocks and test implications of competing behavioural theories that aim to explain momentum returns. Our results show that there is no significant difference in momentum returns between Islamic versus Non-Islamic stocks with respect to both cross-sectional (CS) and time-series (TS) momentum strategies even when we condition momentum returns on market dynamics, information uncertainty and idiosyncratic volatility. We also find that the TS strategy outperforms (underperforms) the CS strategy in market continuations (transitions) consistent with the recent evidence in the U.S. market.Furthermore, we find that CS and TS strategies of both Islamic and Non-Islamic stocks are profitable only when the market continues in the same state consistent with overconfidence driving momentum returns of both Islamic and Non-Islamic stocks.
Journal: Applied Economics
Pages: 5830-5845
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488068
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488068
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5830-5845




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Maxwell
Author-X-Name-First: Michael
Author-X-Name-Last: Maxwell
Author-Name: Michael Daly
Author-X-Name-First: Michael
Author-X-Name-Last: Daly
Author-Name: Daniel Thomson
Author-X-Name-First: Daniel
Author-X-Name-Last: Thomson
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: Optimizing tracking error-constrained portfolios
Abstract: 
 Active portfolios subject to tracking error (TE) constraints are the typical setup for active managers tasked with outperforming a benchmark. The risk and return relationship of such constrained portfolios is described by an ellipse in traditional mean-variance space and the ellipse’s flat shape suggests an additional constraint which improves the performance of the active portfolio. Although subsequent work isolated and explored different portfolios subject to these constraints, absolute portfolio risk has been consistently ignored. A different restriction – maximization of the traditional Sharpe ratio on the constant TE frontier in absolute risk/return space – is added here to the existing constraint set, and a method to generate this portfolio is explained. The resultant portfolio has a lower volatility and higher return than the benchmark, it satisfies the TE constraint and the ratio of excess absolute return to risk is maximized (i.e. maximum Sharpe ratio in absolute space).
Journal: Applied Economics
Pages: 5846-5858
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488069
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488069
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5846-5858




Template-Type: ReDIF-Article 1.0
Author-Name: Dusanee Kesavayuth
Author-X-Name-First: Dusanee
Author-X-Name-Last: Kesavayuth
Author-Name: Robert E. Rosenman
Author-X-Name-First: Robert E.
Author-X-Name-Last: Rosenman
Author-Name: Vasileios Zikos
Author-X-Name-First: Vasileios
Author-X-Name-Last: Zikos
Title: Retirement and health behaviour
Abstract: 
 This article investigates whether and to what extent retirement changes health behaviour. For identification we use an instrumental variable approach that exploits exogenous variations in the early and normal retirement ages within and across 10 European countries. Our results reveal that among those who abstained from alcohol and vigorous or moderate exercise at baseline, retirement increased those activities. Non-smokers did not increase smoking upon retirement. Retirement led to less smoking for those who smoked before retiring. It also brought about an increase in vigorous exercise for those who had the behaviour at baseline. These results further vary by a person’s job type, but less so with respect to gender or geographic region. Overall, our findings provide new empirical evidence on the causal link between retirement and health behaviours and how such link relates to four sources of individual heterogeneity: gender, European geographic region, job type and baseline health behaviour.
Journal: Applied Economics
Pages: 5859-5876
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488070
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488070
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5859-5876




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Liang Liu
Author-X-Name-First: Chih-Liang
Author-X-Name-Last: Liu
Author-Name: Yi-Mien Lin
Author-X-Name-First: Yi-Mien
Author-X-Name-Last: Lin
Title: Do mispricing and financial constraints matter for investment decisions?
Abstract: 
 This study investigates how mispricing and financing constraints affect ﬁrms’ future capital investments. We find that when the financing constraints are high, overpriced (underpriced) firms invest more (less) subsequently under previous non-optimal investments. The overpriced (underpriced) firms with precautionary motives invest significantly less subsequently when they are financially constrained. The overall evidence suggests that share mispricing, financial constraints and precautionary motives play a critical role that enables investors to less effectively monitor managers’ real decisions, thus limiting firms’ capital investments.
Journal: Applied Economics
Pages: 5877-5892
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488071
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488071
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5877-5892




Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Shiyi Li
Author-X-Name-First: Shiyi
Author-X-Name-Last: Li
Title: Distance and government resource allocation: from the perspective of environmental information disclosure policy change
Abstract: 
 This article investigates the relationship between environmental information and government resources and focuses on the moderate effect of distance. The results show that (1) the promulgation and implementation of the Measures for the Disclosure of Environmental Information (MDEI) can improve the level and quality of environmental information and then increase resource allocation and (2), after the MDEI are issued, distance has a significant negative moderate effect on the positive impact of MDEI, and the negative moderate effect of distance is more significant in low GDP and marketization regions, high-polluting industries and firms audited by the non-Big 4 accounting firms.
Journal: Applied Economics
Pages: 5893-5902
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488072
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488072
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5893-5902




Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Title: Returns to education in China: a meta-analysis
Abstract: 
 Within labour economics, returns to education is an area of focused research. Moreover, amongst studies looking at emerging economies, China is the most widely studied economy. While there is a general consensus that returns to education are positive, studies use various datasets and methodologies and consequently present varying estimates of returns to education. We perform a meta-analysis of these estimates of the returns to education in China, addressing issues of heterogeneity in the existing literature and examining whether variations in reported estimates can be explained by study characteristics such as dataset and estimation methods, among others. The meta-regression results show that variations in reported estimates can be accounted for by study characteristics such as data source, estimation method and sample period, among others. The results support the college premium hypothesis and reveal that the returns to education for college graduates are higher than those for other (lower) levels of education.
Journal: Applied Economics
Pages: 5903-5919
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488074
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488074
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5903-5919




Template-Type: ReDIF-Article 1.0
Author-Name: Yihong Tang
Author-X-Name-First: Yihong
Author-X-Name-Last: Tang
Author-Name: Jing Yan
Author-X-Name-First: Jing
Author-X-Name-Last: Yan
Author-Name: Feng Yu
Author-X-Name-First: Feng
Author-X-Name-Last: Yu
Title: Multi-product firms, heterogeneous quality and exporting behaviour: product-level evidence from the movie industry
Abstract: 
 This article examines how quality affects heterogeneous multiple-product firms’ exporting behaviours. We develop a structural model of the global movie market, including both consumers’ movie demand choices and firms’ exporting decisions. A movie studio is a multi-product firm that releases many movies within a year. We model movie quality as a combination of firm-level appeal and product-level attractiveness. We find that both studio-level and movie-level heterogeneity affect demand for movie, and movie-level heterogeneity is relatively more important. We also explore the counterfactual effects of quality improvement and trade liberalization on trade. Our results show that improvement of quality increases both intensive margin and extensive margin of trade. By elimination of quota, we find that trade liberalization increases movie exports to a foreign market by 19%. The results of our study can also help improve understanding of trade in the service industry. For instance, we do not find a positive correlation between the foreign entry costs and the geographic distance, as in the case of manufacture goods.
Journal: Applied Economics
Pages: 5920-5934
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489506
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489506
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5920-5934




Template-Type: ReDIF-Article 1.0
Author-Name: Ramaprasad Bhar
Author-X-Name-First: Ramaprasad
Author-X-Name-Last: Bhar
Author-Name: A. G. Malliaris
Author-X-Name-First: A. G.
Author-X-Name-Last: Malliaris
Title: Asset price momentum and monetary policy: time-varying parameter estimation of Taylor Rules
Abstract: 
 In this article, we consider two new independent variables as inputs to the Taylor Rule. These are the equity and housing momentum variables and are introduced to investigate the potential usefulness of these two variables in guiding the Fed to lean against potential bubbles. Such effectiveness cannot adequately be evaluated if the Taylor Rule estimation follows the standard regression methodology that has been criticized in the literature to be econometrically incorrect. Using a time-varying parameter estimation methodology, we find that equity momentum as an input in the Taylor Rule does not contribute to changes in Fed Funds. However, the housing momentum plays an important role econometrically and can be a useful tool in setting Fed Funds rates.
Journal: Applied Economics
Pages: 5329-5339
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176117
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176117
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5329-5339




Template-Type: ReDIF-Article 1.0
Author-Name: J. F. Li
Author-X-Name-First: J. F.
Author-X-Name-Last: Li
Author-Name: Z. X. Lin
Author-X-Name-First: Z. X.
Author-X-Name-Last: Lin
Title: Social benefit expenditures and stagflation: evidence from the United States
Abstract: 
 Stagflation refers to the terrible economic malaise associated with declining growth, hyperinflation and high unemployment. Unlike previous cost-push explanations such as an overheated labour market and oil prices, this article suggests that social benefit expenditures are a potential cause of stagflation. We investigate the impact of social benefit expenditures on stagflation in the U.S. over the 1950–2014 period by employing an autoregressive distributed lag (ARDL) bounds testing approach to cointegration, which was developed by Pesaran, Shin, and Smith. The influence of social benefit expenditures on economic growth and inflation and unemployment rates is estimated. The empirical results from the U.S. suggest that economic growth responds negatively to social benefit expenditures, while inflation and unemployment rates are both positively associated with social benefit expenditures. Thus, government-led rigid welfare could contribute to stagflation in the U.S. Instead of increasing people’s happiness, the over-burdened welfare system could push people into economic malaise. This stagflation risk shouldn’t be ignored. These results are important for U.S. policymakers and can inform other governments characterized by high levels of well-being.
Journal: Applied Economics
Pages: 5340-5347
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176118
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176118
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5340-5347




Template-Type: ReDIF-Article 1.0
Author-Name: J. Bradley Karl
Author-X-Name-First: J. Bradley
Author-X-Name-Last: Karl
Author-Name: Patricia H. Born
Author-X-Name-First: Patricia H.
Author-X-Name-Last: Born
Author-Name: W. Kip Viscusi
Author-X-Name-First: W. Kip
Author-X-Name-Last: Viscusi
Title: The relationship between the markets for health insurance and medical malpractice insurance
Abstract: 
 This article evaluates the interdependence of medical malpractice insurance markets and health insurance markets. Prior research has addressed the performance of these markets, individually, without specifically quantifying the extent to which they are linked. Increasing levels of health insurance losses could increase the scale of potential malpractice claims, boosting medical malpractice losses, or could embody an improvement in medical care quality, which will reduce malpractice losses. Our results for a state panel data set from 2002 to 2009 demonstrate that health insurance losses are negatively related to medical malpractice insurance losses. An additional dollar of health insurance losses is associated with a $0.01–$0.05 reduction in medical malpractice losses. These findings have potentially important implications for assessments of the net cost of health insurance policies.
Journal: Applied Economics
Pages: 5348-5363
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176119
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176119
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5348-5363




Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Nafeo Abdulai
Author-X-Name-First: Abdul Nafeo
Author-X-Name-Last: Abdulai
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Allocative and scale efficiency among maize farmers in Zambia: a zero efficiency stochastic frontier approach
Abstract: 
 The commonly used stochastic frontier model assumes that all firms are inefficient. In this specification, inefficiency is non-negative, and the probability of inefficiency being exactly zero is also zero. To the extent that efficiency varies widely across farms in under-developed economies, it is important to employ techniques that account for both inefficiency and full efficiency to ensure unbiased efficiency estimates. In this study, we employ a zero-inefficiency stochastic frontier model to examine allocative efficiency and scale economies, as well as key determinants of efficiency among Zambian maize farmers. The results show that, unlike the stochastic frontier model, the zero-inefficiency stochastic frontier model successfully allows for both fully efficient and inefficient firms to be accounted for in the estimation procedure. The estimates also reveal the presence of scale economies, with the zero-inefficiency stochastic frontier model better predicting scale efficiency compared to the stochastic frontier model. The findings also show that inefficiency is explained by the level of education, access to extension services, distance to markets and access to credit.
Journal: Applied Economics
Pages: 5364-5378
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176120
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176120
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5364-5378




Template-Type: ReDIF-Article 1.0
Author-Name: Shangqin Hong
Author-X-Name-First: Shangqin
Author-X-Name-Last: Hong
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Author-Name: Philip McCann
Author-X-Name-First: Philip
Author-X-Name-Last: McCann
Author-Name: Trinh Le
Author-X-Name-First: Trinh
Author-X-Name-Last: Le
Title: Why firm size matters: investigating the drivers of innovation and economic performance in New Zealand using the 
Abstract: 
 The performance of the New Zealand (NZ) economy is something of an enigma. Although ranked one (of 144 countries) for four important ‘growth fundamentals’ NZ is ‘middle of the pack’ when it comes to economic growth, productivity and process innovation. Using four iterations (2005, 2007, 2009 and 2011) of the Business Operations Survey, this research seeks to shed some new light on this conundrum by using a multivariate probit regression (mvprobit) approach applied to pooled samples in excess of 22,000 unit record observations of NZ firms. The results suggest that factors including firm size, high perceived quality, investment/research and development (R&amp;D) capability, major technology change, application of formal IP protection and new export markets are systematically and positively related to innovation; while many external issues, such as those related to geography, market structure, business environment, have little influence. At the firm level, innovations in NZ are highly dependent on the firms’ internal ability to develop new technologies and market demand. The (very small) size of firms does matter in NZ, which lacks a major ‘home market’ or a major trade block on its doorstep, such that ultimately, government may need to be involved to maintain a viable scale for domestic R&amp;D.
Journal: Applied Economics
Pages: 5379-5395
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1178843
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178843
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5379-5395




Template-Type: ReDIF-Article 1.0
Author-Name: Nicoleta Iliescu
Author-X-Name-First: Nicoleta
Author-X-Name-Last: Iliescu
Author-Name: Satyaki Dutta
Author-X-Name-First: Satyaki
Author-X-Name-Last: Dutta
Title: The information content of implied volatility in developed versus developing FX markets
Abstract: 
 This article predicts the daily movement of monthly foreign exchange (FX) rate volatility using a linear combination of a time-series model and implied volatilities from options. The focus is on analysing the FX volatilities in three developing economies (the Brazilian real (BRL), the Indian rupee (INR) and the Russian ruble (RUB)) against the US dollar (USD). The empirical exercise utilizes two time-series models, mixed data sampling (MIDAS) and GARCH. The analysis indicates that for both developed and developing economies the predictive power of MIDAS and that of GARCH is comparable. Further on in this article, we will ascertain whether the relationship between realized and implied volatility is fundamentally different in the case of developing economies from that among developed economies. Thus, we compare the pairs USD/BRL, USD/INR and USD/RUB against EURO/USD and USD/Japanese yen to determine the information content and predictive power of implied volatilities. Plots of the MIDAS coefficients show that the volatility is more persistent in developing economies than in developed economies.
Journal: Applied Economics
Pages: 5396-5404
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1178844
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178844
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5396-5404




Template-Type: ReDIF-Article 1.0
Author-Name: Chiara Guerello
Author-X-Name-First: Chiara
Author-X-Name-Last: Guerello
Author-Name: Marco Tronzano
Author-X-Name-First: Marco
Author-X-Name-Last: Tronzano
Title: The expectations hypothesis of the term structure of interest rates and monetary policy: some evidence from Asian countries
Abstract: 
 This article outlines a panel data approach to modelling the term structure of interest rates in the short and in the long run. We find robust evidence supporting the expectations hypothesis of the term structure (EHTS) for a small sample of Asian emerging markets. Furthermore, we detect some relevant differences in the transmission mechanism of monetary policy, and the existence of a McCallum (2005) rule (no exogeneity of monetary policy to the yield curve) in some countries. Finally, we document the influence of an international global factor (i.e. a time-varying global risk premium) on the yield curve, while local country-specific factors are not statistically significant.
Journal: Applied Economics
Pages: 5405-5420
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1178845
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178845
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5405-5420




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: 1-1
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1216679
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1216679
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:1-1




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Botta
Author-X-Name-First: Marco
Author-X-Name-Last: Botta
Author-Name: Luca Colombo
Author-X-Name-First: Luca
Author-X-Name-Last: Colombo
Title: Seasoned equity offering announcements and the returns on European bank stocks and bonds
Abstract: 
 We analyse, by means of appropriate event studies, the returns following seasoned equity offering announcements made by western European banks between 2008 and 2014. Consistently with the pertinent literature on non-financial companies, we find that shareholders experience negative returns. We highlight that the same occurs for bondholders, although not surprisingly to a smaller extent. Overall, our results show that seasoned equity offering announcements play an important signalling role also in the banking industry, despite the tight regulation and supervision by banking authorities, which should in principle reduce the impact on pricing of the information asymmetries about banks’ financial conditions.
Journal: Applied Economics
Pages: 1339-1359
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527450
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527450
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1339-1359




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Rohloff
Author-X-Name-First: Sebastian
Author-X-Name-Last: Rohloff
Title: Commodity prices and the AUD-Yen exchange rate: a real-time forecasting analysis
Abstract: 
 I study the impact of the GSCI commodity price indices on the Australian dollar-Japanese yen nominal exchange rate using a modified version of the classic monetary approach of exchange rate determination. I use a broad range of model-selection and model-averaging criteria. I find some evidence for a short-lived relationship as far as inclusions in the optimal forecasting models are concerned. In general, though, results of the Diebold-Mariano and Clark-West test show that results are not stable over the whole sample.
Journal: Applied Economics
Pages: 1360-1382
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527451
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527451
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1360-1382




Template-Type: ReDIF-Article 1.0
Author-Name: Kay H. Hofmann
Author-X-Name-First: Kay H.
Author-X-Name-Last: Hofmann
Author-Name: Christian Opitz
Author-X-Name-First: Christian
Author-X-Name-Last: Opitz
Title: Talent and publicity as determinants of superstar incomes: empirical evidence from the motion picture industry
Abstract: 
 By drawing on the two prevailing economic stardom theories, the paper investigates the sources of superstardom in the US movie industry. For the econometric analysis, we use income and popularity data of screen actresses and actors from the annual Celebrity 100 lists as published by Forbes Magazine. The empirical findings indicate that Hollywood, in contrast to other professional settings, supports two different types of stars. While ‘talent stars’ exploit acting merit, it is media exposure that drives the income of ‘publicity stars’. Apparently, in the motion picture industry both underlying resources are equally important and equally valued. Based on these insights we develop concrete recommendations for the career management of artists and the management of film projects.
Journal: Applied Economics
Pages: 1383-1395
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527452
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527452
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1383-1395




Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Baldini
Author-X-Name-First: Massimo
Author-X-Name-Last: Baldini
Author-Name: Carlo Mazzaferro
Author-X-Name-First: Carlo
Author-X-Name-Last: Mazzaferro
Author-Name: Paolo Onofri
Author-X-Name-First: Paolo
Author-X-Name-Last: Onofri
Title: Pension expectations, reforms and macroeconomic downturn in Italy. What can microdata tell us?
Abstract: 
 We use different years of the Bank of Italy’s Survey on Household Income and Wealth (SHIW) to explore how Italian workers’ expectations regarding their future level of pension benefits and retirement age changed from 2000 to 2014. Comparing expected and statutory values for future pension benefits and retirement ages, we find that knowledge of the pension system and its rules are not evenly distributed among workers. Some sections of the population, in particular, younger workers, women and the self-employed, are less precise in estimating their future pension benefits. As for retirement age, a large share of the working population still has not completely assimilated the implications of the linkage with the evolution of lifetime expectations at 65. Expectations in the final part of the period observed are dominated by increasing pessimism, which may be related to the macroeconomic crisis of the Italian economy and to the approval of a severe pension reform in 2011. Checking whether a household’s total wealth is consistent with lifetime consumption, we find that households where the head overestimates the future value of the pension benefit accumulate fewer resources than the remaining part of the population.
Journal: Applied Economics
Pages: 1396-1410
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527453
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527453
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1396-1410




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Plum
Author-X-Name-First: Alexander
Author-X-Name-Last: Plum
Title: The British low-wage sector and the employment prospects of the unemployed
Abstract: 
 Are low wages a way for the unemployed to switch to higher-paying jobs? Using data from the British Household Panel Survey, the labour market dynamics of unemployed, low-paid and higher-paid employed men are analysed. Moreover, the respective (un)employment duration and occupational skill level are accounted for. Results show that in general low wages significantly reduce the risk of future unemployment and increase the chances of ascending the salary ladder, especially in the case of long-term unemployment (>360 days). Furthermore, the occupational skill level has a substantial influence on the upward mobility of low-paid jobs: individuals working in the initial period in a low-paid and higher-skilled occupation have on average an 11 percentage points higher probability of entering higher pay compared to when working in a low-paid and low-skilled occupation.
Journal: Applied Economics
Pages: 1411-1432
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527454
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527454
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1411-1432




Template-Type: ReDIF-Article 1.0
Author-Name: Miaochen Lv
Author-X-Name-First: Miaochen
Author-X-Name-Last: Lv
Author-Name: Manying Bai
Author-X-Name-First: Manying
Author-X-Name-Last: Bai
Title: Political uncertainty and corporate debt financing: empirical evidence from China
Abstract: 
 We examine the influence of political uncertainty on corporate debt financing under the Chinese highly specialized political system. A new reasonable and effective alternative indicator, official turnover reason, is constructed to measure different political uncertainty level. Robust results suggest that listed companies will keep low debt financing level and smooth debt financing volatility under political uncertainty, which will be weakened during the global financial crisis. We also find that the listed company will raise equity financing level while overall financing is significantly reduced. In addition, SOEs are more sensitive to political uncertainty than non-SOEs, as they have stronger political connections with government officials.
Journal: Applied Economics
Pages: 1433-1449
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527455
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527455
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1433-1449




Template-Type: ReDIF-Article 1.0
Author-Name: Gilberto Oliveira Boaretto
Author-X-Name-First: Gilberto Oliveira
Author-X-Name-Last: Boaretto
Author-Name: Cleomar Gomes Da Silva
Author-X-Name-First: Cleomar Gomes
Author-X-Name-Last: Da Silva
Title: Services inflation dynamics and persistence puzzle in Brazil: a time-varying parameter approach
Abstract: 
 This article analyses services inflation dynamics in Brazil, focusing on the Services Inflation Persistence Puzzle, for monthly data from January 2004 to February 2016. We apply a time-varying parameter (TVP) approach, via a Kalman filter, to estimate hybrid Phillips curves and compare inflation inertia for tradable goods and services inflation. Aggregate Brazilian Extended Consumer Price Index inflation serves as a benchmark. To justify the TVP analysis, parameter instability and structural change tests are implemented, based on OLS and Generalized Method of Moments (GMM) frameworks. The main results are as follows: (i) the TVP approach is relevant due to observed instability in some parameters estimated; (ii) inflation expectation coefficients are higher than lagged inflation in all calculations, but inflation inertia is not negligible at all; (iii) services inflation persistence ranges from 27 to 36%, whereas tradable goods inflation persistence ranges from 36 to 47%, providing evidence of the Services Inflation Persistence Puzzle in Brazil; (iv) from 2009 onwards an increase in one percentage point in real wages raises monthly services inflation rate by 0.02 to 0.03 percentage point; (v) there is evidence that cost-push pressures, due to wage increases in the service sector, are more important to explain services inflation than demand pressures from early 2009 to mid-2014.
Journal: Applied Economics
Pages: 1450-1462
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527456
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527456
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1450-1462




Template-Type: ReDIF-Article 1.0
Author-Name: M. Christl
Author-X-Name-First: M.
Author-X-Name-Last: Christl
Author-Name: Monika Köppl–Turyna
Author-X-Name-First: Monika
Author-X-Name-Last: Köppl–Turyna
Title: Gender wage gap and the role of skills and tasks: evidence from the Austrian PIAAC data set
Abstract: 
 We analyze the gender differences in skills, tasks and skill matching of workers, and the impact of these factors on the gender wage gap, using the Survey of Adult Skills, a product of the OECD Programme for the International Assessment of Adult Competencies (PIAAC). We show that data on these characteristics, not available in traditional data sets, explain a substantial part of the gender wage gap. Based on up-to-date econometric methodology, the unexplained part of the gender wage gap is reduced by six to nine percentage points across the whole wage distribution when we add skill and occupational task variables and control for sample selection. We show that this result stems from gender differences in returns on tasks and skills, and gender differences in skill endowments and occupational tasks.
Journal: Applied Economics
Pages: 113-134
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1630707
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630707
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:113-134




Template-Type: ReDIF-Article 1.0
Author-Name: Thaddée Badibanga
Author-X-Name-First: Thaddée
Author-X-Name-Last: Badibanga
Author-Name: John Ulimwengu
Author-X-Name-First: John
Author-X-Name-Last: Ulimwengu
Title: Optimal investment for agricultural growth and poverty reduction in the democratic republic of congo a two-sector economic growth model
Abstract: 
 We propose a two-sector economic growth model and solve it numerically using the relaxation algorithm to determine the optimal levels of investment for sustainable agricultural growth and poverty reduction. Overall, our findings suggest that past dismal growth performance and poverty trends in the Democratic Republic of Congo (DRC) are due to sub-optimal investment in agricultural sector. Our results suggest that optimal level of agricultural investment paves the way to achieving both growth and poverty goals faster than it would have been possible otherwise. Over the period 2002-2012, agricultural investment represents only 45% of its optimal levels. Under the optimal investment scenario, agricultural GDP grows faster. However, agricultural GDP growth rate falls significantly behind that of non-agricultural GDP, and thus delay the achievement of growth and poverty goals. Simulation results suggest that additional agricultural investment coupled with improved agricultural inputs productivity will speed up the country’s pace toward achieving growth and poverty reduction targets: a 10% increase in labour productivity combined with a 10% increase in land productivity reduces by 18 years the amount of time within which the CAADP growth goal will be reached and increases the pace of poverty reduction.
Journal: Applied Economics
Pages: 135-155
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1630709
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630709
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:135-155




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas W. Zuehlke
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Zuehlke
Title: Estimation of a Two-Limit Tobit model with generalized Box–Cox transformation and unknown censoring thresholds
Abstract: 
 This article considers estimation of a Two-Limit Tobit model with generalized Box–Cox transformation and unknown censoring thresholds. The maximum likelihood estimates of the censoring thresholds are the smallest and largest elements of the order statistic of the transformed dependent variable for the uncensored subsample. Conditional on the estimated censoring thresholds and the parameter of the generalized Box–Cox transformation, the model is a standard Tobit model. If the dependent variable is scaled by the geometric mean of its absolute values for the uncensored subsample, then currently available software for estimation of Tobit models may be used in conjunction with a grid search over the Box–Cox parameter to determine the globalmaximum likelihood estimates. The advantage of the models proposed in this article is that: 1) use of estimated censoring thresholds serve to directly eliminate the understatement of tail probabilities that can result from use of fixed thresholds, and 2) use of the generalized Box–Cox transformation allows greater flexibility in the shape of the distribution used to model quantitative variation in the uncensored subsample, as well as greater flexibility in the tail probabilities of the censored subsample.
Journal: Applied Economics
Pages: 156-174
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1638498
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638498
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:156-174




Template-Type: ReDIF-Article 1.0
Author-Name: D. Estévez Schwarz
Author-X-Name-First: D.
Author-X-Name-Last: Estévez Schwarz
Author-Name: E. Sommer
Author-X-Name-First: E.
Author-X-Name-Last: Sommer
Title: Feasible smooth income tax schedules: benefits and distributional implications
Abstract: 
 Existing tax schedules are often overly complex and characterized by discontinuities in the marginal tax burden. In this paper, we propose a class of progressive smooth functions to replace personal income tax schedules. These functions depend only on three meaningful parameters, and avoid the drawbacks associated with defining tax schedules through various tax brackets. Based on representative micro data, we derive revenue-neutral parameters for four different types of tax regimes (Austria, Germany, Hungary and Spain). We then analyze the possible implications of a hypothetical switch to smoother income tax tariffs. It turns that smooth tax functions are convenient to eliminate bracket creep, while aggregate income inequality is uniformly reduced to a small extent.
Journal: Applied Economics
Pages: 175-194
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1638500
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638500
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:175-194




Template-Type: ReDIF-Article 1.0
Author-Name: Kyoung Y. Na
Author-X-Name-First: Kyoung Y.
Author-X-Name-Last: Na
Author-Name: Dong H. Kim
Author-X-Name-First: Dong H.
Author-X-Name-Last: Kim
Author-Name: Byoung G. Park
Author-X-Name-First: Byoung G.
Author-X-Name-Last: Park
Author-Name: Sang W. Yoon
Author-X-Name-First: Sang W.
Author-X-Name-Last: Yoon
Author-Name: Chang-Ho Yoon
Author-X-Name-First: Chang-Ho
Author-X-Name-Last: Yoon
Title: ICT and transport infrastructure development: an empirical analysis of complementarity
Abstract: 
 This paper provides an empirical framework to assess the nonlinear complementary linkage effects that arise from the interaction between motorway capital and information and communications technology (ICT) capital in developed economies. Using panel data from the Organisation for Economic Co-operation and Development (OECD) member countries and controlling for endogeneity, the paper finds that there exists a critical mass for ICT capital such that if the capital grows beyond the critical mass, the marginal contribution of motorway capital to productivity growth increases as the motorway is extended. This empirical result explains variations in the productivity contributions of transport infrastructure across countries that differ in their ICT infrastructure and has implications for setting the investment priorities of key components of infrastructure.
Journal: Applied Economics
Pages: 195-211
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1640860
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640860
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:195-211




Template-Type: ReDIF-Article 1.0
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: Yasfir Ibraimo
Author-X-Name-First: Yasfir
Author-X-Name-Last: Ibraimo
Title: The macroeconomic effects of public debt: an empirical analysis of Mozambique
Abstract: 
 We assess empirically the macroeconomic effects of public debt for the case of Mozambique over the period of 2000Q1-2016Q4. We use a Vector Autoregression model to assess these effects through impulse response functions and variance decomposition. We conclude that debt service variables have more negative economic effects than debt variables. Debt variables over the period of this study had no significant impact on the real output and the debt service component depressed the real output, increased the general price level and accounted for the depreciation on the domestic currency.
Journal: Applied Economics
Pages: 212-226
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644445
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644445
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:212-226




Template-Type: ReDIF-Article 1.0
Author-Name: Longyao Zhang
Author-X-Name-First: Longyao
Author-X-Name-Last: Zhang
Author-Name: Wenli Cheng
Author-X-Name-First: Wenli
Author-X-Name-Last: Cheng
Author-Name: Enjiang Cheng
Author-X-Name-First: Enjiang
Author-X-Name-Last: Cheng
Author-Name: Bi Wu
Author-X-Name-First: Bi
Author-X-Name-Last: Wu
Title: Does land titling improve credit access? Quasi-experimental evidence from rural China
Abstract: 
 Based on official surveys conducted in 2010 and 2015, we study how the Chinese land titling reform beginning in 2009 affected rural households’ access to credit. We find that the reform had differential credit effects across households. For households with above-average economic status (measured by the area of cultivated land, level of income, and convenience of bank visits), access to formal credit improved as a result of the reform. For households with below-average economics status, reliance on informal credit lessened. We show that the availability of land as collateral might have enhanced access to formal credit. Another channel of the credit effects was income and wealth. We find that land titling had a positive impact on average household income, which would reduce their need for informal credit. For those households with above-average area of cultivated land, land titling increased their wealth and might have expanded their operations, which would increase both their credit demand and their ability to access formal credit.
Journal: Applied Economics
Pages: 227-241
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644446
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644446
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:227-241




Template-Type: ReDIF-Article 1.0
Author-Name: Juan A. Mañez
Author-X-Name-First: Juan A.
Author-X-Name-Last: Mañez
Author-Name: Rafael Moner Colonques
Author-X-Name-First: Rafael
Author-X-Name-Last: Moner Colonques
Author-Name: Jose J. Sempere-Monerris
Author-X-Name-First: Jose J.
Author-X-Name-Last: Sempere-Monerris
Author-Name: Amparo Urbano
Author-X-Name-First: Amparo
Author-X-Name-Last: Urbano
Title: Brand price differentials in retail distribution: product quality and service quality
Abstract: 
 A theoretical model is proposed to disentangle the contribution of brand quality and retailer service quality in explaining brand price differentials across retailers. Two testable hypotheses emerge: (i) for each brand type, price differences across retailers are independent of brand quality differentials and (ii) at a given retailer, price differences between different brand qualities are independent of service quality differentials. Our empirical analysis, for a sample of the U.K. grocery retailer prices, discloses that retailers that offer higher service quality sell same quality brands at higher prices. In particular, service quality premia amount to 6% for national brands and are in the range of 9–15% for low-quality store brands. Besides, at a given retailer, the price premia paid for the national brand are very large: around 150% between national brands and low-quality store brands, and around 40% between national brands and high-quality store brands. Also, the price differential between the national brand and the low-quality store brand does not increase with service quality.
Journal: Applied Economics
Pages: 5749-5760
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184377
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184377
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5749-5760




Template-Type: ReDIF-Article 1.0
Author-Name: Pablo Emilio Escamilla García
Author-X-Name-First: Pablo Emilio
Author-X-Name-Last: Escamilla García
Author-Name: María Elena Tavera Cortés
Author-X-Name-First: María Elena
Author-X-Name-Last: Tavera Cortés
Author-Name: Raúl Junior Sandoval Gómez
Author-X-Name-First: Raúl Junior
Author-X-Name-Last: Sandoval Gómez
Author-Name: Edmar Salinas Callejas
Author-X-Name-First: Edmar
Author-X-Name-Last: Salinas Callejas
Author-Name: Horacio Eliseo Alvarado Raya
Author-X-Name-First: Horacio Eliseo
Author-X-Name-Last: Alvarado Raya
Title: Economic feasibility analysis for electrical generation from biogas in waste disposal sites in Mexico City
Abstract: 
 This article highlights the main aspects related to energy generation from biogas in a controlled landfill of Mexico City in order to determine profits and environmental benefits. The designed structures and public policies to provide waste management services in Mexico City have been exceeded. A significant increase in demand has led the government of Mexico City to base public services on rudimentary techniques using obsolete equipment. The modernization of waste disposal facilities and the diversification of services linked to waste treatment can offer several business opportunities to optimize energy generation from solid wastes. The use of landfills to dispose large amounts of waste enables the energy generation from biogas. The energy generated can diversify the electricity market and provide economic benefits to landfills managers to cover operational costs.
Journal: Applied Economics
Pages: 5761-5771
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184378
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184378
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5761-5771




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: BRIC and GIPS – who drives who? Evidence from newly developed asymmetric causality tests
Abstract: 
 We investigate the asymmetric causal interaction between the stock markets of the GIPS (Greece, Ireland, Portugal and Spain) and those of the BRIC (Brazil, Russia, India and China) based on a newly developed asymmetric causality test by Hatemi-J (2012) [Hatemi-J, A. 2012. “Asymmetric Causality Tests with an Application.” Empirical Economics 43: 447–456. doi:10.1007/s00181-011-0484-x]. We confirm a significant stock market interaction between the two blocs in which the BRIC drives the GIPS but not vice versa. Thus, the BRIC seems to be more influential on the GIPS than the GIPS on the BRIC. However, this interaction occurs only during downmarket conditions but not during upmarket times. The BRIC pulls down the GIPS during bad times but does not pull them up during good times. These results have significant implications for international policymakers and provide further evidence on the existence of asymmetric causal interactions between financial markets.
Journal: Applied Economics
Pages: 5772-5778
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184379
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184379
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5772-5778




Template-Type: ReDIF-Article 1.0
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Author-Name: Zhengyi Jiang
Author-X-Name-First: Zhengyi
Author-X-Name-Last: Jiang
Title: Study on the industrial Eco-Efficiency in East China based on the Super Efficiency DEA Model: an example of the 2003–2013 panel data
Abstract: 
 The article uses the panel data of six provinces and one chartered city in East China from 2003 to 2013 as an example, constructs the input–output indicators system of Eco-Efficiency, calculates each region’s industrial Eco-Efficiencies throughout the 11 years by the Super Efficiency DEA Model, carries out dynamic studies on the efficiencies by using the Malmquist Index and analyses the factors influencing the efficiencies by the Tobit model. The empirical studies suggest the following: the regions in East China have relatively high industrial Eco-Efficiencies, and the efficiencies turn out a downward then upward trend; there are disparities among the regions as Shanghai, Zhejiang and Jiangsu are regions of relatively high industrial Eco-Efficiencies; the region all have Tfpch (productivity changes) greater than 1, of which the average is 7.2%, and the industrial Eco-Efficiencies are mainly driven by technology advancement; research and development, foreign capital and industrial structure each has a positive relationship with the industrial Eco-Efficiencies, and research and development has a significant influence, while industrial structure has an insignificant influence, and environment governance has a negative and significant influence.
Journal: Applied Economics
Pages: 5779-5785
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184380
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184380
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5779-5785




Template-Type: ReDIF-Article 1.0
Author-Name: Michel Dumont
Author-X-Name-First: Michel
Author-X-Name-Last: Dumont
Author-Name: Glenn Rayp
Author-X-Name-First: Glenn
Author-X-Name-Last: Rayp
Author-Name: Marijn Verschelde
Author-X-Name-First: Marijn
Author-X-Name-Last: Verschelde
Author-Name: Bruno Merlevede
Author-X-Name-First: Bruno
Author-X-Name-Last: Merlevede
Title: The contribution of start-ups and young firms to industry-level efficiency growth
Abstract: 
 This article examines the impact of start-ups (active for 1 up to 5 years) and young firms (active for 6 up to 10 years) on industry-level efficiency growth in six EU countries, covering the period 2002–2009. Using semi-parametric estimates of meta-frontier efficiency, it is found that surviving entrants gradually raise their efficiency level in all countries considered. Firm-level efficiency growth decreases with firm age, whereas reallocation towards efficient firms contributes more to industry-level growth as firms mature. The relative contribution of start-ups appears to have been important as they actually contributed positively to overall efficiency growth which, over the period under consideration, was negative in most countries, even before the ‘Great Recession’. There are indications of ‘cleansing’, due to the exit of less efficient firms, during the ‘Great Recession’.
Journal: Applied Economics
Pages: 5786-5801
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184381
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184381
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5786-5801




Template-Type: ReDIF-Article 1.0
Author-Name: Renée Fry-Mckibbin
Author-X-Name-First: Renée
Author-X-Name-Last: Fry-Mckibbin
Author-Name: Jasmine Zheng
Author-X-Name-First: Jasmine
Author-X-Name-Last: Zheng
Title: Effects of the US monetary policy shocks during financial crises – a threshold vector autoregression approach
Abstract: 
 This article analyzes the impact of monetary policy during periods of low and high financial stress in the US economy using a threshold vector autoregression model. There is evidence that expansionary monetary policy is effective during periods of high financial stress with larger responses having a higher proportionate effect on output. The existence of a cost channel effect during periods of high financial stress implies the existence of a short run output-inflation trade off during financial crises. Large expansionary monetary shocks also increase the likelihood of moving the economy out of a high financial stress regime.
Journal: Applied Economics
Pages: 5802-5823
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186792
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186792
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5802-5823




Template-Type: ReDIF-Article 1.0
Author-Name: Liping Lu
Author-X-Name-First: Liping
Author-X-Name-Last: Lu
Author-Name: Chunyang Wang
Author-X-Name-First: Chunyang
Author-X-Name-Last: Wang
Title: Investing against the wind: contagion during the recent financial crisis
Abstract: 
 This article examines the effect of Warren Buffett’s investment in Goldman Sachs on 24 September 2008, during the subprime mortgage crisis. Although this event is arguably perceived to be the biggest expression of confidence in the financial market during the crisis, by conducting event studies, we do not find the major counterparties of Goldman Sachs displayed positive abnormal returns. Moreover, the abnormal return is not significantly related to the counterparty connection. We have similar findings on these financial institutions’ default probabilities using credit default swap.
Journal: Applied Economics
Pages: 5824-5833
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186793
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186793
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5824-5833




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: i-i
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1196045
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1196045
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:i-i




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: ii-ii
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1208919
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208919
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:ii-ii




Template-Type: ReDIF-Article 1.0
Author-Name: Matt E. Ryan
Author-X-Name-First: Matt E.
Author-X-Name-Last: Ryan
Author-Name: Jackson Celestin
Author-X-Name-First: Jackson
Author-X-Name-Last: Celestin
Title: Game over? Assessing the impact of the emergence of a profitable wagering strategy in major league baseball wagering markets
Abstract: 
 Testing the impact of profitable investment strategies is often hampered by the practical difficulties of determining who knew what, and when. This study examines the impact of the publication of a profitable wagering strategy on the Major League Baseball wagering market. While standard measures of market efficiency characterized the Major League Baseball win–loss moneyline market to be efficient, previous works shows that wagering on underdogs early in the season can generate persistent profits. Though the overall efficiency of the baseball wagering market remained after publication, these profitable opportunities dissipated. Bettor behaviour is found to play varying roles across different wagering strategies; up to half of the drop in returns can be attributed to wagering market participant behaviour.
Journal: Applied Economics
Pages: 3979-3991
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430349
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430349
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:3979-3991




Template-Type: ReDIF-Article 1.0
Author-Name: Tian-Tian Zhu
Author-X-Name-First: Tian-Tian
Author-X-Name-Last: Zhu
Author-Name: Yue-Jun Zhang
Author-X-Name-First: Yue-Jun
Author-X-Name-Last: Zhang
Author-Name: Ke Wang
Author-X-Name-First: Ke
Author-X-Name-Last: Wang
Title: The allocation of PhD enrolment quotas in China’s research-oriented universities based on equity and efficiency principles
Abstract: 
 PhD enrolment quota allocation proves the key concern for China’s universities to promote institutional reform and improve research level, and it is often characterized by the zero sum game among schools within a university. Therefore, this article develops a new indicator system for PhD enrolment quota allocation and efficiency evaluation in China, and then it reallocates the quotas considering the preferences of decision-makers and the efficiency based on the historical data during 2011–2015 in a research-oriented university in China. The results indicate that, first, the preferences of decision-makers in the university for article publications and research funds may significantly affect the allocation of PhD enrolment quotas among schools. Second, when the linear combination weighting method is used, the overall efficiency for PhD enrolment allocation proves the highest, among various weighting methods concerned. Finally, to improve the overall efficiency of the 19 schools, five social science schools and four engineering schools have to cut their PhD enrolment quotas; among them, three engineering schools should reduce the largest redundant quotas sharply. The methods and results in this article are conducive to the allocation of education resources which have the zero sum feature and are often accompanied with undesirable outputs.
Journal: Applied Economics
Pages: 3992-4004
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1438585
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1438585
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:3992-4004




Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Ayala
Author-X-Name-First: Astrid
Author-X-Name-Last: Ayala
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Title: Equity market neutral hedge funds and the stock market: an application of score-driven copula models
Abstract: 
 In this article, we study the time-varying market neutrality of equity market neutral hedge funds. We use data from the Hedge Fund Research™ Equity Market Neutral Index (HFRX EH), which represents the performance of a portfolio of individual equity market neutral hedge funds. For each day, we measure different levels of association of the Standard and Poor’s 500 (S&amp;P 500) index and the HFRX EH. We use non-linear dynamic conditional score models of location, scale and copula that, to the best of our knowledge, have not yet been applied in the body of literature on hedge funds. We study whether the neutrality of the HFRX EH that is evidenced in the body of literature for the period of April 1993–April 2003 also holds for the following decade, for the period of May 2003–December 2016. We estimate different average levels of association for the pre-, during- and post-periods of the US financial crisis of 2008. We find that the association of the S&amp;P 500 and the HFRX EH, on average, is significantly positive for the pre- and post-periods of the financial crisis, and it is significantly negative for the period during the financial crisis.
Journal: Applied Economics
Pages: 4005-4023
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1440062
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1440062
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4005-4023




Template-Type: ReDIF-Article 1.0
Author-Name: Gregmar I. Galinato
Author-X-Name-First: Gregmar I.
Author-X-Name-Last: Galinato
Author-Name: Pitchayaporn Tantihkarnchana
Author-X-Name-First: Pitchayaporn
Author-X-Name-Last: Tantihkarnchana
Title: The amenity value of climate change across different regions in the United States
Abstract: 
 This article estimates the effect of climatic variables on house prices near ski resorts in different regions in the United States. We find that among the climate variables we test, average winter temperature has the most significant and robust effect where an increase in this climate variable increases house prices near ski resorts at a decreasing rate. At the mean average winter temperature levels, an increase in average winter temperature reduces housing prices for all regions except the Northeast. The consumer surplus from projected average winter temperature changes is negative across all regions and the largest negative effects are in the Midwest and Mountain regions.
Journal: Applied Economics
Pages: 4024-4039
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441507
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441507
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4024-4039




Template-Type: ReDIF-Article 1.0
Author-Name: Bei Yang
Author-X-Name-First: Bei
Author-X-Name-Last: Yang
Author-Name: Charles P. Cullinan
Author-X-Name-First: Charles P.
Author-X-Name-Last: Cullinan
Author-Name: Hui Liu
Author-X-Name-First: Hui
Author-X-Name-Last: Liu
Title: Analyst following and pay-performance sensitivity: evidence from China
Abstract: 
 We examine whether analyst following is associated with pay-performance sensitivity in China. Based on our analyses of 17,020 Chinese firm-years from 2007 to 2015, we find that pay-performance sensitivity is higher when companies are followed by financial analysts. We also find that the analyst following/pay-performance sensitivity relationship is stronger for non-state-owned enterprises (SOEs) than for SOEs. Overall, our results indicate that companies followed by financial analysts exhibit more pay-performance-sensitivity, which is consistent the notion that financial analysts can serve an external monitoring role.
Journal: Applied Economics
Pages: 4040-4053
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441508
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441508
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4040-4053




Template-Type: ReDIF-Article 1.0
Author-Name: Samique March-Dallas
Author-X-Name-First: Samique
Author-X-Name-Last: March-Dallas
Author-Name: Robert Daigler
Author-X-Name-First: Robert
Author-X-Name-Last: Daigler
Author-Name: Suchi Mishra
Author-X-Name-First: Suchi
Author-X-Name-Last: Mishra
Author-Name: Arun Prakash
Author-X-Name-First: Arun
Author-X-Name-Last: Prakash
Title: Exchange traded funds: leverage and liquidity
Abstract: 
 This paper examines the differences between leveraged and unleveraged Exchange Traded Funds (ETFs), particularly for liquidity and volatility characteristics. The impact of leverage on intraday liquidity (spread and depth) is analysed in two periods – one of normal volatility and the other of abnormal/high volatility. There is a significant difference in spread and depth of leveraged and unleveraged ETFs in periods of both normal volatility and high volatility; however, this difference is more pronounced in higher volatility periods. In high volatility periods, liquidity typically diminishes in all ETFs, and this is even more so for the leveraged ETFs. When leveraged ETFs are segregated into multiples based on their power to replicate the underlying benchmark (i.e. multiples of −3, −2, −1, 2, 3), the difference in spreads between normal and high volatility periods is typically larger. The double-leveraged ETF has the most significant difference between the positive and negative counter parts. However, the relationship in the progression of the multiples does not change linearly to correspond with the level of volatility. This may be due to the nonlinear relation between volume and volatility. We shed light on the magnification effect of financial leverage on microstructure of the ETFs.
Journal: Applied Economics
Pages: 4054-4073
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441510
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441510
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4054-4073




Template-Type: ReDIF-Article 1.0
Author-Name: Panagiotis Mantalos
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Mantalos
Author-Name: Lars Hultkrantz
Author-X-Name-First: Lars
Author-X-Name-Last: Hultkrantz
Title: Estimating ‘gamma’ for tail-hedge discount rates when project returns are cointegrated with GDP
Abstract: 
 Martin Weitzman has suggested a method for calculating social discount rates for long-term investments when project returns are covariant with consumption or other macroeconomic variables, so-called ‘tail-hedge discounting’. This method relies on a parameter called ‘real project gamma’ that measures the proportion of project returns that is covariant with the macroeconomic variable. We compare two approaches for estimation of this gamma when the project returns and the macroeconomic variable are cointegrated. First, we use Weitzman’s own approach, and second a simple data transformation that keeps gamma within the zero to one interval. In a Monte-Carlo study, we show that the method of using a standardized series is better and robust under different data-generating processes. Both approaches are examined in a Monte-Carlo experiment and applied to Swedish time-series data from 1950–2011 for annual time-series data for rail freight (a measure of returns from rail investments) and GDP.
Journal: Applied Economics
Pages: 4074-4085
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441511
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441511
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4074-4085




Template-Type: ReDIF-Article 1.0
Author-Name: Hidefumi Kasuga
Author-X-Name-First: Hidefumi
Author-X-Name-Last: Kasuga
Author-Name: Yuichi Morita
Author-X-Name-First: Yuichi
Author-X-Name-Last: Morita
Title: Does aid affect inequality?
Abstract: 
 We show that there was a negative correlation between pro-poor aid and inequality in the period before the mid-2000s. This article provides an explanation for this observed relationship. Using panel data on 34 countries for the period 1996–2014, we test the hypothesis that pro-poor aid has an inequality-reducing effect. To demonstrate that the negative correlation is not spurious, we use dynamic panel techniques with alternative specifications. We show that the share of pro-poor aid has a negative effect on inequality. In addition, we show that the interaction term between the poverty rate and the change in pro-poor aid has a significant effect. These empirical results are consistent with our theoretical predictions. The results imply that aid can reduce inequality by altering the allocation of aid, rather than by increasing the amount of aid.
Journal: Applied Economics
Pages: 6249-6262
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489512
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489512
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6249-6262




Template-Type: ReDIF-Article 1.0
Author-Name: Bakr Al-Gamrh
Author-X-Name-First: Bakr
Author-X-Name-Last: Al-Gamrh
Author-Name: Ku Nor Izah Ku Ismail
Author-X-Name-First: Ku Nor Izah
Author-X-Name-Last: Ku Ismail
Author-Name: Redhwan Al-Dhamari
Author-X-Name-First: Redhwan
Author-X-Name-Last: Al-Dhamari
Title: The role of corporate governance strength in crisis and non-crisis times
Abstract: 
 This study evaluates corporate governance practices of listed firms in the United Arab Emirates and investigates whether corporate governance mitigates/exacerbates the impact of leverage and risk on firm performance during crisis and non-crisis times. The study constructs a corporate governance index not only to examine the dispute of the role of corporate governance during the crisis but also its influence on other factors that fuelled the crisis. A firm-level panel data is used that spans the period 2008–2012 of all listed firms on Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM). The study finds a positive influence of corporate governance strength on the accounting performance, but a negative influence on the firms’ economic performance. In normal times, corporate governance mitigates the negative influence of leverage and risk on the accounting and economic firm performance. However, this synergy effect varies across performance indicators during crisis.
Journal: Applied Economics
Pages: 6263-6284
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489513
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489513
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6263-6284




Template-Type: ReDIF-Article 1.0
Author-Name: Frédéric Vrins
Author-X-Name-First: Frédéric
Author-X-Name-Last: Vrins
Author-Name: Mikael Petitjean
Author-X-Name-First: Mikael
Author-X-Name-Last: Petitjean
Title: Extreme events and the cumulative distribution of net gains in gambling and structured products
Abstract: 
 We argue that ethical principles in advertising and market communication cannot be properly discovered and applied to gambling without a deep understanding of its probabilistic implications, in particular when extreme events are influential. We carry out a probabilistic analysis of lottery games with lifetime prizes in order to derive sound recommendations about the pertinent information that should be communicated to nudge gamblers. We propose to focus on the cumulative distribution of net gains, for which there is currently no information available to gamblers. This holds true for structured products in which extreme events matter as well.
Journal: Applied Economics
Pages: 6285-6300
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489514
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489514
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6285-6300




Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim
Author-X-Name-First: Sangho
Author-X-Name-Last: Kim
Title: Firm heterogeneity in sources of total factor productivity growth for Japanese manufacturing firms
Abstract: 
 We investigate firm heterogeneity in productivity sources across technology sectors for Japanese manufacturers. Firm heterogeneity in productivity sources conveys more information about firm-specific differences in productivity. In this regard, large firms are more productive, largely because they are more innovative, despite being slow to catch up during booms or operating at a less-than-efficient scale. We find that the beneficial impact of exports on productivity is most evident when firms become exporters, and intrafirm trade causes enough inefficiency to offset the salutary effects of trade after a certain threshold. Notably, firm heterogeneity in productivity varies considerably across the technology sectors.
Journal: Applied Economics
Pages: 6301-6315
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489515
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489515
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6301-6315




Template-Type: ReDIF-Article 1.0
Author-Name: Tsuyoshi Nihonsugi
Author-X-Name-First: Tsuyoshi
Author-X-Name-Last: Nihonsugi
Author-Name: Hiroshi Nakano
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Nakano
Author-Name: Katsuhiko Nishizaki
Author-X-Name-First: Katsuhiko
Author-X-Name-Last: Nishizaki
Author-Name: Takafumi Yamakawa
Author-X-Name-First: Takafumi
Author-X-Name-Last: Yamakawa
Title: Contributions in linear public goods experiments with stranger matching: two motivations
Abstract: 
 We investigated why subjects contribute to the public good in a linear public goods game with stranger matching. In this experiment, subjects were asked to determine their contributions to the public good and also their beliefs about their partners’ contributions. Additionally, the subjects were asked to note the reason for their decisions in real time. We used the subjects’ descriptions for a coding analysis, which is a classification method of the motivations. Integrating this coding methodology and behavioural data revealed that full contributions are the result of two motives. One is the conditional cooperation motive to achieve the socially optimal outcome. The other is the motive to lead the other group member to contribute all of their endowment in the following periods by signalling one’s own act (i.e. a teaching motive). The study further reveals that the two identified motives play a key role in driving cooperative behaviour, and that other motives (such as confusion and altruism) play a minor role.
Journal: Applied Economics
Pages: 6316-6326
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489517
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489517
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6316-6326




Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: Estimating the monetary benefits of medicare eligibility for reducing the symptoms of dementia
Abstract: 
 We adopt a three-component method based on the idea of cost-saving for estimating the monetary benefits of Medicare eligibility for reducing dementia symptoms. The method involves Medicare eligibility lowering dementia symptoms, which reduces the need for dependent living, which in turn lowers caregiving costs. We use the Regression Discontinuity approach to establish a causal link between Medicare eligibility and dementia. The novel aspect of the study comes from using a quality-of-life proxy measure for the utility function to derive the marginal rate of substitution between dementia symptoms reduction and dependent living arrangements.
Journal: Applied Economics
Pages: 6327-6340
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489519
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489519
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6327-6340




Template-Type: ReDIF-Article 1.0
Author-Name: Fritz Schiltz
Author-X-Name-First: Fritz
Author-X-Name-Last: Schiltz
Author-Name: Chiara Masci
Author-X-Name-First: Chiara
Author-X-Name-Last: Masci
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Daniel Horn
Author-X-Name-First: Daniel
Author-X-Name-Last: Horn
Title: Using regression tree ensembles to model interaction effects: a graphical approach
Abstract: 
 Multiplicative interaction terms are widely used in economics to identify heterogeneous effects and to tailor policy recommendations. The execution of these models is often flawed due to specification and interpretation errors. This article introduces regression trees and regression tree ensembles to model and visualize interaction effects. Tree-based methods include interactions by construction and in a nonlinear manner. Visualizing nonlinear interaction effects in a way that can be easily read overcomes common interpretation errors. We apply the proposed approach to two different datasets to illustrate its usefulness.
Journal: Applied Economics
Pages: 6341-6354
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489520
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489520
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6341-6354




Template-Type: ReDIF-Article 1.0
Author-Name: E. M. de Oliveira
Author-X-Name-First: E. M.
Author-X-Name-Last: de Oliveira
Author-Name: F. A. F. S. Cunha
Author-X-Name-First: F. A. F. S.
Author-X-Name-Last: Cunha
Author-Name: F. L. Cyrino Oliveira
Author-X-Name-First: F. L.
Author-X-Name-Last: Cyrino Oliveira
Author-Name: C. P. Samanez
Author-X-Name-First: C. P.
Author-X-Name-Last: Samanez
Title: Dynamic relationships between crude oil prices and socially responsible investing in Brazil: evidence for linear and non-linear causality
Abstract: 
 Recent years have witnessed an increasing interest in socially responsible investing (SRI), reflecting investors’ growing awareness of social, environmental, ethical and corporate governance issues. At the same time, the effect of oil price shocks on stock price returns has become a prominent issue due to surges in energy prices. Using the Brazilian corporate sustainability index (ISE) as a benchmark for socially responsible investments in the Brazilian stock market, the present study extends the understandings on the impact of oil prices on stock price behaviour, focusing on a new class of assets: those from socially responsible firms. To this end, apart from conventional linear causality approaches, we apply a nonparametric test by Diks and Panchenko (DP) on daily data spanning from January 2008 to December 2015 to test for non-linear causality, before and after controlling for conditional heteroscedasticity. Our findings show that, in spite of their efforts to become more socially responsible, firms that have adhered to the ISE in recent years are influenced by crude oil spot prices, especially the WTI crude. In line with previous studies, we also provide consistent evidence that the Brazilian stock market, as a whole, is associated with the international crude oil market.
Journal: Applied Economics
Pages: 2125-2140
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234695
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234695
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2125-2140




Template-Type: ReDIF-Article 1.0
Author-Name: Gustavo Canavire-Bacarreza
Author-X-Name-First: Gustavo
Author-X-Name-Last: Canavire-Bacarreza
Author-Name: Marcos Robles
Author-X-Name-First: Marcos
Author-X-Name-Last: Robles
Title: Non-parametric analysis of poverty duration using repeated cross section: an application for Peru
Abstract: 
 Using repeated cross-section annual data for Peru spanning 2002–2011 and non-parametric duration analysis, our estimates support the hypothesis that both stay in and exit from poverty (non-poverty) depends on the duration and sequence of poverty (non-poverty) spells. We find that longer periods in poverty reduce the probability of leaving poverty and, conversely, longer periods spent out of poverty reduce the chance of falling back into poverty. Also, we show that, at least in the last decade (of high economic growth), the probability of staying in poverty was lower than staying in non-poverty and the probability of re-entering in poverty was higher than re-entering in non-poverty, being both differences growing with the number of accumulated spells. Past experiences of poverty and non-poverty seem to be essential to predict the future status of poverty.
Journal: Applied Economics
Pages: 2141-2152
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234696
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234696
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2141-2152




Template-Type: ReDIF-Article 1.0
Author-Name: Mizuki Komura
Author-X-Name-First: Mizuki
Author-X-Name-Last: Komura
Author-Name: Hikaru Ogawa
Author-X-Name-First: Hikaru
Author-X-Name-Last: Ogawa
Title: The prodigal son: does the younger brother always care for his parentsin old age?
Abstract: 
 Studies have shown that the older sibling often chooses to live away from his elderly parents intending to free ride on the care provided by the younger child. In the presented model, we incorporate income effects and depict a different pattern frequently observed in Eastern countries; that is, the older sibling lives near his or her parents and takes care of them in old age. By generalizing the existing model, we show three cases of elderly parents being looked after by (i) the older sibling, (ii) the younger sibling, and (iii) both siblings, depending on the relative magnitude of the income effect and the strategic incentive for one sibling to free ride on the other. Our study also investigates the effect of changes in relative income on the level of total care received by parents.
Journal: Applied Economics
Pages: 2153-2165
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234697
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234697
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2153-2165




Template-Type: ReDIF-Article 1.0
Author-Name: Kazuhiko Kobori
Author-X-Name-First: Kazuhiko
Author-X-Name-Last: Kobori
Author-Name: Robert Hutchinson
Author-X-Name-First: Robert
Author-X-Name-Last: Hutchinson
Author-Name: Ping-Chang Lee
Author-X-Name-First: Ping-Chang
Author-X-Name-Last: Lee
Author-Name: Yao-Chuan Tsai
Author-X-Name-First: Yao-Chuan
Author-X-Name-Last: Tsai
Author-Name: Tsing-Zai C. Wu
Author-X-Name-First: Tsing-Zai C.
Author-X-Name-Last: Wu
Title: Main banks’ influence on financial reporting quality in Japan
Abstract: 
 This study investigated main banks’ influence on the quality of accounting firms’ audits and corporate firms’ earnings, focusing on companies on Japan’s Nikkei 500 index. We posed three questions in this research study about main banks’ influence on corporate clients’ earnings management. First, does a weakened main bank relationship influence corporate clients’ financial reporting quality? Second, does Japan’s firewall deregulation influence firms’ earnings quality? Finally, does the relationship between accounting firms and main banks affect client firms’ earnings quality? Our main findings were that main banks are not related to client firms’ earnings management; however, main banks mitigate client firms’ earnings management after firewall deregulation. On the other hand, firewall deregulation does motivate firms to manipulate their earnings management. Finally, using Pong and Kita’s (2006) study as a framework, we found that main banks and client firms using the same accounting firms had no influence on earnings management. Based on these evidences presented, our findings suggest that the quality of corporate clients’ financial reporting changes before and after firewall deregulation.
Journal: Applied Economics
Pages: 2166-2178
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234698
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234698
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2166-2178




Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: María Rosalía Vicente
Author-X-Name-First: María Rosalía
Author-X-Name-Last: Vicente
Author-Name: Paul Rappoport
Author-X-Name-First: Paul
Author-X-Name-Last: Rappoport
Author-Name: Andy Banerjee
Author-X-Name-First: Andy
Author-X-Name-Last: Banerjee
Title: A contribution on the nature and treatment of missing data in large market surveys
Abstract: 
 Nonresponse (or missing data) is often encountered in large-scale surveys. To enable the behavioural analysis of these data sets, statistical treatments are commonly applied to complete or remove these data. However, the correctness of such procedures critically depends on the nature of the underlying missingness generation process. Clearly, the efficacy of applying either case deletion or imputation procedures rests on the unknown missingness generation mechanism. The contribution of this article is twofold. The study is the first to propose a simple sequential method to attempt to identify the form of missingness. Second, the effectiveness of the tests is assessed by generating (experimentally) nine missing data sets by imposed missing completely at random, missing at random and not missing at random processes, with data removed.
Journal: Applied Economics
Pages: 2179-2187
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234699
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234699
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2179-2187




Template-Type: ReDIF-Article 1.0
Author-Name: Mamit Deme
Author-X-Name-First: Mamit
Author-X-Name-Last: Deme
Author-Name: Estrella R. Ndrianasy
Author-X-Name-First: Estrella R.
Author-X-Name-Last: Ndrianasy
Title: Trade-creation and trade-diversion effects of regional trade arrangements: low-income countries
Abstract: 
 Although the number of regional trade arrangements (RTAs) among the lowest-income developing countries is surging, the literature on their welfare effects is still scarce, and the few that exist fail to provide conclusive results. Furthermore, these RTAs are dominated by countries with a small share of total exports destined for intraregional trade flows. Our study focuses on the welfare effects of RTAs (pertaining to trade creation and trade diversion) among this group of countries. We use a theoretically justified gravity model to estimate welfare effects, focusing on trade creation and trade diversion and deviating from the norm in related studies, accounting for heterogeneity in third countries. Using ECOWAS as a sample, we estimate welfare effects on 1992–2012 annual bilateral imports for 14 countries from 169 countries. Contrary to conventional expectations in the literature, we find that economic integration among small and relatively low-income countries that have a small share of total trade with each other is welfare-improving for the members as a group, for the majority of the individual member countries, and for some third countries. Accounting for heterogeneity in third countries reveals that an RTA among low-income countries has a particularly robust trade-creation effect.
Journal: Applied Economics
Pages: 2188-2202
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234700
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234700
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2188-2202




Template-Type: ReDIF-Article 1.0
Author-Name: Eunhee Lee
Author-X-Name-First: Eunhee
Author-X-Name-Last: Lee
Author-Name: Doo Bong Han
Author-X-Name-First: Doo Bong
Author-X-Name-Last: Han
Author-Name: Rodolfo M. Nayga
Author-X-Name-First: Rodolfo M.
Author-X-Name-Last: Nayga
Title: A common factor of stochastic volatilities between oil and commodity prices
Abstract: 
 This article analyses the multivariate stochastic volatilities (SVs) with a common factor influencing volatilities in the prices of crude oil and agricultural commodities, used for both biofuel and nonbiofuel purposes. Modelling the volatility is crucial because the volatility is an important variable for asset allocation, risk management and derivative pricing. We develop a SV model comprising a latent common volatility factor with two asymptotic regimes with a smooth transition between them. In contrast to conventional volatility models, SVs are generated by the logistic transformation of latent factors, which comprise two components: the common volatility factor and an idiosyncratic component. We present a SV model with a common factor for oil, corn and wheat from 8 August 2005 to 10 October 2014, using a Markov chain Monte Carlo method to estimate the SVs and extract the common volatility factor. We find that the volatilities of oil and grain markets are persistent. According to the estimated common volatility factor, high volatility periods match the 2007–2009 recession and the 2007–2008 financial crisis quite well. Finally, the extracted common volatility factor exhibits a distinct pattern.
Journal: Applied Economics
Pages: 2203-2215
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234701
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234701
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2203-2215




Template-Type: ReDIF-Article 1.0
Author-Name: Karim Badr
Author-X-Name-First: Karim
Author-X-Name-Last: Badr
Author-Name: Reham Rizk
Author-X-Name-First: Reham
Author-X-Name-Last: Rizk
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: Firm productivity and agglomeration economies: evidence from Egyptian data
Abstract: 
 This paper attempts to shed the light on the nexus between firms’ productivity and economies of agglomeration in Egypt. Using a large dataset of firms in 342 firms’ four-digit activities in 27 regions (62,108 firms), we introduce three measures of agglomeration which are urbanization or firm diversification measured by the number of firms by governorate, localization and specialization measured by the average productivity by governorate and sector (generating externalities and knowledge spillovers) and finally competition measured by the number of firm operating in the same governorate and the same sector. We find strong evidence for the existence of agglomeration in Egypt after controlling for firm age, location, economic activity and legal status. In the Egyptian context, productivity spillovers gained from agglomeration measures outweighed the negative effects of competition implied by congestion. The latter is chiefly due to the lack of good infrastructure. When regressions are run by firm size, location and activity, our main findings show first that micro and small firms are more likely to benefit from localization and diversification compared to medium and large firms. Service firms benefit more from high level of diversification while manufacturing firms gain more benefits from knowledge spillovers and specialization in Egypt.
Journal: Applied Economics
Pages: 5528-5544
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1613506
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613506
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5528-5544




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Schalembier
Author-X-Name-First: Benjamin
Author-X-Name-Last: Schalembier
Author-Name: Brent Bleys
Author-X-Name-First: Brent
Author-X-Name-Last: Bleys
Author-Name: Luc Van Ootegem
Author-X-Name-First: Luc
Author-X-Name-Last: Van Ootegem
Author-Name: Elsy Verhofstadt
Author-X-Name-First: Elsy
Author-X-Name-Last: Verhofstadt
Title: How relative income affects work hours preferences
Abstract: 
 In this article, we look at explanations for why people want to change their working hours. We focus on the role of income and differentiate between the effect of household income, personal income and self-perceived relative income. Using Flemish data on 1435 workers, we perform binary logistic regressions in which we compare those who are over- or underemployed with those who are currently working their preferred number of hours. Our results show that the desire to work fewer hours is mostly related to a bad work–life balance, while the wish to increase working hours is associated with relative income rather than absolute income. Based on our findings we recommend governments to not only focus on increasing flexibility at the individual level but to also consider these positional effects by taking measures (e.g. decreasing the duration of the standard working week) at the population level.
Journal: Applied Economics
Pages: 5545-5558
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1613512
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613512
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5545-5558




Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Richard O. Olayeni
Author-X-Name-First: Richard O.
Author-X-Name-Last: Olayeni
Author-Name: Sodik Adejonwo Olofin
Author-X-Name-First: Sodik Adejonwo
Author-X-Name-Last: Olofin
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: The Indian inflation–growth relationship revisited: robust evidence from time–frequency analysis
Abstract: 
 This article re-visits the inflation–growth nexus in India using the tools of wavelet, i.e. wavelet correlation, wavelet cross-correlation and scale by scale Granger causality test. Wavelet cross-correlation analysis shows that at the shortest scales inflation and economic growth were independent; at medium scales, there exists feedback effect; and at higher scales, only economic growth is leading to inflation. Furthermore, we find: (a) high and increasing dependence between inflation and economic growth, particularly after mid-2002; (b) high-frequency components of economic growth Granger-cause low-frequency component of CPI-based inflation and vice-versa, and at all scales economic growth Granger-cause inflation at scales of 4–6 and no evidence of causality was detected from WPI-based inflation to economic growth; (c) results indicate that there is no long-run causal link between inflation and economic growth. This study presents new insights for policymakers to sustain economic development by using inflation as an economic tool in India.
Journal: Applied Economics
Pages: 5559-5576
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616065
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616065
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5559-5576




Template-Type: ReDIF-Article 1.0
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: Frederico Silva Leal
Author-X-Name-First: Frederico Silva
Author-X-Name-Last: Leal
Title: Fiscal multipliers in the Eurozone: an SVAR analysis
Abstract: 
 We compute the value of fiscal multipliers (for government primary expenditure, Income and wealth taxes and for Production and import taxes) in the Eurozone countries since the creation of the currency union (2000Q1-2016Q4), in order to understand how the values can vary according to the public debt level, the pace of economic growth, and the output gap. Imposing quarterly fiscal shocks, the results showed that government expenditure had a positive effect on output, with an annual accumulated multiplier of 0.44, whereas tax multipliers presented negative signs: the Income and wealth and the Production and import taxes stood at −0.11 and −0.55, respectively. Furthermore, the spending multiplier showed a higher value for countries with lower levels of public debt, during recessions, and in countries with negative output gaps. On the other hand, tax shocks seemed to be recessive in highly indebted countries and those facing positive output gaps.
Journal: Applied Economics
Pages: 5577-5593
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616068
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616068
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5577-5593




Template-Type: ReDIF-Article 1.0
Author-Name: Dae-Yong Ahn
Author-X-Name-First: Dae-Yong
Author-X-Name-Last: Ahn
Title: How store format choices and market structure affect agglomeration economies and competition among chain stores in the US supermarket industry
Abstract: 
 This article studies how store format choices and market concentration affect agglomeration economies and competition among chain stores. Using data on supermarket chains in Arizona, Georgia and Illinois, we decompose a store’s sales into parts stemming from local market conditions, such as demographics, and parts stemming from competition measures, which can be of its own chain’s stores or of other chains’ stores. Our results show that local market conditions are still a key factor in generating store sales. In more concentrated markets of Georgia and Illinois, a supermarket chain suffers from business-stealing among its own stores – agglomeration economies not sufficient to offset competition among its stores – but ironically tolerates the presence of other chains’ stores. Can a retail chain favourably tip the balance of agglomeration economies and competition? We find the answer by looking at the two big corporations in Arizona – Bashas Markets Inc. and Kroger Co. – which own two and three store formats, respectively, catering to distinct consumer segments, and thus promoting agglomeration economies while minimizing competition among their own stores.
Journal: Applied Economics
Pages: 5594-5608
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616069
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616069
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5594-5608




Template-Type: ReDIF-Article 1.0
Author-Name: Yasemin Ozturk
Author-X-Name-First: Yasemin
Author-X-Name-Last: Ozturk
Author-Name: Tekin Kose
Author-X-Name-First: Tekin
Author-X-Name-Last: Kose
Title: Health, time allocation and work: empirical evidence from Turkey
Abstract: 
 This article investigates the relationship between health status and time allocation decisions of individuals. Although many studies address impacts of health on labour supply, few studies explore associations of health status with non-market work activities. Using a nationally representative sample from a recent Turkish Time Use Survey, this article employs Seemingly Unrelated Regression (SUR) framework to estimate multiple equations of various time use categories. Consistent with literature, empirical results indicate that higher levels of self-reported health status (SRHS) are associated with more time spent in market work. However, better health level is negatively correlated with time spent in leisure and sleep. There is mixed evidence between self-reported health status (SRHS) and time spent on non-market work. There is a negative weak association between health and time devoted to personal care. Finally, demographics such as gender, age, education and marital status display correlations with time allocation of Turkish individuals.
Journal: Applied Economics
Pages: 5609-5622
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616070
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616070
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5609-5622




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Hanoma
Author-X-Name-First: Ahmed
Author-X-Name-Last: Hanoma
Author-Name: Dieter Nautz
Author-X-Name-First: Dieter
Author-X-Name-Last: Nautz
Title: The information content of market-based measures for the long-term inflation expectations of professionals: evidence from a midas analysis
Abstract: 
 Long-term inflation expectations taken from the Survey of Professional Forecasters are a major source of information for monetary policy. Unfortunately, they are published only on a quarterly basis. This article investigates the daily information content of market-based measures, such as inflation-linked swaps and breakeven inflation rates, for the next survey outcome. Using a mixed data sampling approach, we find that professionals account for the daily dynamics of market-based measures when they submit their long-term inflation expectations. We propose a daily indicator of professionals’ inflation expectations that outperforms alternative indicators that ignore the high-frequency dynamics of market-based measures. To illustrate the usefulness of the new indicator, we provide new evidence on the (re-)anchoring of U.S. inflation expectations.
Journal: Applied Economics
Pages: 5623-5636
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616071
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616071
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5623-5636




Template-Type: ReDIF-Article 1.0
Author-Name: Sanket Mohapatra
Author-X-Name-First: Sanket
Author-X-Name-Last: Mohapatra
Author-Name: Manabu Nose
Author-X-Name-First: Manabu
Author-X-Name-Last: Nose
Author-Name: Dilip Ratha
Author-X-Name-First: Dilip
Author-X-Name-Last: Ratha
Title: Determinants of the distance between sovereign credit ratings and sub-sovereign bond ratings: Evidence from emerging markets and developing economies
Abstract: 
 This article explores factors that affect the distance between sovereign credit ratings and the ratings assigned to new foreign-currency bonds issued by sub-sovereign entities (such as private non-financial corporations, financial firms, and public sector enterprises) in 47 emerging markets and developing economies. Censored and double-hurdle regression models are used to estimate the relative contributions of bond-level, issuer-level, and macroeconomic factors that determine this distance, separately for those rated at or below the sovereign rating and those rated above. For the three quarters or more of sub-sovereign bond ratings that are constrained by the sovereign rating ceiling, a Tobit regression model shows a smaller distance – suggesting stronger sovereign–corporate linkages – for public sector enterprises and financial firms relative to other firms. Riskier global financial conditions are also associated with sub-sovereign bonds being rated closer to the sovereign rating. For the small number of sub-sovereign bonds rated higher than the sovereign rating, a double-hurdle model shows that certain debt features – such as bonds backed by future-flow receivables or other collateral or structured as Special Purpose Vehicles (SPV) – significantly raise the likelihood of piercing the sovereign rating ceiling and also increase the distance above the sovereign ceiling.
Journal: Applied Economics
Pages: 934-956
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346364
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346364
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:934-956




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel J. Tulloch
Author-X-Name-First: Daniel J.
Author-X-Name-Last: Tulloch
Author-Name: Ivan Diaz-Rainey
Author-X-Name-First: Ivan
Author-X-Name-Last: Diaz-Rainey
Author-Name: I.M Premachandra
Author-X-Name-First: I.M
Author-X-Name-Last: Premachandra
Title: The impact of regulatory change on EU energy utility returns: the three liberalization packages
Abstract: 
 The European Union’s (EU) energy sector is changing due to major policy reforms. In this article, we examine the impact of major legislative changes which were designed to induce competition in the energy sector: the three liberalization packages. Competition was expected to benefit the industry by phasing out inefficient firms. EU citizens were also expected to benefit as competition was likely to promote a more efficient energy sector and more consumer choice of energy products and services. However, this legislative change occurred during a period of extreme market turmoil. We examine the impact of all these changes on the risk profile of the sector. Our results show that the liberalization legislation significantly increased systematic risk exposure of the sector, reducing its role as a defensive investment asset. We also show that commodities had relatively little impact on sector returns, but this was expected as utilities can offset commodity risk in hedging markets. We compare our results to those obtained in neighbouring EU sectors and find the impacts are isolated to the energy sector. This article makes a major contribution to energy policy by empirically showing the change in risk as a result of sector liberalization.
Journal: Applied Economics
Pages: 957-972
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346366
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346366
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:957-972




Template-Type: ReDIF-Article 1.0
Author-Name: Kerry B Hudson
Author-X-Name-First: Kerry B
Author-X-Name-Last: Hudson
Author-Name: Joaquin Vespignani
Author-X-Name-First: Joaquin
Author-X-Name-Last: Vespignani
Title: Understanding the deviation of Australian policy rate from the Taylor rule
Abstract: 
 This investigation aims to explain and quantify the deviations of the Australian policy rate (set by Reserve Bank of Australia) from the Taylor Rule. A three-step econometric procedure designed to reflect the data-rich environment in which central banks operate is proposed using information for 229 macroeconomic series. This procedure can be applied to data for any economy with inflation targeting monetary rule. Our application with Australian data shows that approximately 65% of Australia’s policy rate deviation from the Taylor Rule can be explained systematically, with international factors and a domestic factor accounting for 41.9% and 22.5%, respectively, of the total variation in deviation from the rule.
Journal: Applied Economics
Pages: 973-989
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346367
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346367
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:973-989




Template-Type: ReDIF-Article 1.0
Author-Name: Sena Durguner
Author-X-Name-First: Sena
Author-X-Name-Last: Durguner
Title: Variations in farm consumption and their relationship to income: an empirical investigation of Illinois farm households
Abstract: 
 Empirical tests of household consumption have yielded mixed results regarding the validity of the life cycle/permanent income (LCPI) hypothesis. A significant problem with such studies is the difficulty in finding sufficient micro-level data on household expenditures. By using the recent rich quantity of such data in the Farm Business Farm Management (FBFM) data for Illinois farms from 1995 to 2009, the study reported here for farm households should provide more consistent results regarding the LCPI hypothesis. Applying an empirical model based on the LCPI hypothesis, this article identifies the determinants of farm consumption and the relationship to income. This study provides evidence that current income changes are not significant in explaining the consumption changes of farm households, thus supporting the LCPI hypothesis for farm households.
Journal: Applied Economics
Pages: 990-1005
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349286
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349286
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:990-1005




Template-Type: ReDIF-Article 1.0
Author-Name: Gary D. Ferrier
Author-X-Name-First: Gary D.
Author-X-Name-Last: Ferrier
Author-Name: Hervé Leleu
Author-X-Name-First: Hervé
Author-X-Name-Last: Leleu
Author-Name: Vivian G. Valdmanis
Author-X-Name-First: Vivian G.
Author-X-Name-Last: Valdmanis
Author-Name: Michael Vardanyan
Author-X-Name-First: Michael
Author-X-Name-Last: Vardanyan
Title: A directional distance function approach for identifying the input/output status of medical residents
Abstract: 
 Previous empirical studies examining the impact medical residents have on hospital productivity have made a priori assumptions about whether medical residents are inputs (labour providing patient care) or outputs (students receiving mandatory training under the supervision of an attending physician) when specifying their estimating equations. We shed light on the role medical residents play in hospital production by using a data-driven parametric approach based on the directional technology distance function. Our primary goal is to assess the extent to which one of the two roles of medical residents empirically dominates the other and to see whether the role varies across different types of hospital. Using the American Hospital Association data from 1994 to 2010, we find that residents are inputs in all rural and public non-teaching hospitals, but they are outputs in urban-area not-for-profit teaching hospitals. We also demonstrate that the status of residents is related to the case-mix index and can vary with hospital size.
Journal: Applied Economics
Pages: 1006-1021
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349287
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349287
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:1006-1021




Template-Type: ReDIF-Article 1.0
Author-Name: Zijun Luo
Author-X-Name-First: Zijun
Author-X-Name-Last: Luo
Author-Name: Xu Tian
Author-X-Name-First: Xu
Author-X-Name-Last: Tian
Title: Can China’s meat imports be sustainable? A case study of mad cow disease
Abstract: 
 Rising demand and constrained domestic production have challenged the meat consumption in China. To fill the gap between domestic demand and supply, China imports an increasing volume of meat products from the international market. However, outbreaks of animal diseases can jeopardize China’s ability to meet its need for consumable meat. This article investigates the impact of animal disease outbreaks on the sustainability of China’s meat imports by using the episode of bovine spongiform encephalopathy in the United States in 2003 as a case study. Our results show that China’s meat imports are becoming more diversified and sustainable. The outbreak did have significant negative impacts on beef imports from the United States. During the epidemic, not only was China able to increase beef imports from other major exporters, but it also increased imports of other animal products such as edible offal and pork. Our findings indicate that international trade can serve as a reliable source to meet China’s soaring meat consumption.
Journal: Applied Economics
Pages: 1022-1042
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349288
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349288
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:1022-1042




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Thomson
Author-X-Name-First: Daniel
Author-X-Name-Last: Thomson
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: Attribution of hedge fund returns using a Kalman filter
Abstract: 
 Hedge funds offer attractive investment possibilities because they engage in investment styles and opportunity sets which – because they are different from traditional asset class funds – generate different risk exposures. Conventional wisdom holds that hedge funds add value and provide unique investment opportunities because of their ability to invest in disparate risk exposures, and via the manager’s skill in selecting stocks and timing the market. In this article, a Kalman filter is used to decompose the time series of hedge fund returns into market timing and stock selection factors to establish whether fund managers really do generate statistically significant abnormal profits. Compelling evidence supports an alternative interpretation for the market timing return constituent. This work represents the first time the Kalman filter has been used to extract a time series of the capital asset pricing model’s dynamic variables for determining return component magnitudes.
Journal: Applied Economics
Pages: 1043-1058
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349290
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349290
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:1043-1058




Template-Type: ReDIF-Article 1.0
Author-Name: Maneka Jayasinghe
Author-X-Name-First: Maneka
Author-X-Name-Last: Jayasinghe
Author-Name: Shyama Ratnasiri
Author-X-Name-First: Shyama
Author-X-Name-Last: Ratnasiri
Author-Name: Christine Smith
Author-X-Name-First: Christine
Author-X-Name-Last: Smith
Author-Name: Andreas Chai
Author-X-Name-First: Andreas
Author-X-Name-Last: Chai
Title: Domestic technology, consumption economies of scale and poverty: evidence from Sri Lanka
Abstract: 
 While it is well known that new technologies enhance consumer welfare, the manner in which these technologies impact the ability to realize economies of scale in consumption is not well understood. We use Sri Lankan household data to examine how the adoption of new technologies by households positively impacts their ability to achieve household economies of scale. This suggests that new technologies not only deliver a greater variety of consumption goods to consumers, but they may also play an important role in enabling large households to escape poverty by lowering the per-capita costs of maintaining a given standard of living. Given the importance of consumption economies of scale in the measurement of poverty, this study provides some insights on the extent to which the number of poor households changes when food consumption scale economies due to technology adoption in the domestic sphere are incorporated.
Journal: Applied Economics
Pages: 1777-1789
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374540
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374540
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1777-1789




Template-Type: ReDIF-Article 1.0
Author-Name: Jason Hecht
Author-X-Name-First: Jason
Author-X-Name-Last: Hecht
Title: Research and development and labour productivity: do high-tech firms exhibit labour- or capital-saving technical change?
Abstract: 
 Employment and output in the advanced technology sectors have generally exhibited above-average growth for more than two decades. While this industry accounts for a relatively small share of total employment, the majority of private sector research and development (R&amp;D) expenditures in the US is concentrated within seven sub-sectors. However, little attention has been paid as to whether high-tech productivity exhibits Hicksian capital or labour ‘savings’ bias or tendency to displace either factor input over time. Biased technical change can occur as economies transition between growth regimes. An augmented production function is employed to analyse the additional impact of R&amp;D activity on firm-level labour productivity. A panel data set comprised of high-tech firms located across the advanced economies, China and India from 1990 to 2013 is used in the analysis. Labour-saving technical change was present across the advanced technology sectors and most countries. The expanded models of labour productivity that used fixed effects with lagged regressors confirmed the prior results as well as finding that R&amp;D per employee, relative R&amp;D intensity and firm market share contribute to firm-level labour productivity growth across countries and sectors. Additional support was found for diminishing returns to scale but not for R&amp;D spillover effects.
Journal: Applied Economics
Pages: 1790-1811
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374541
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374541
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1790-1811




Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Lüdering
Author-X-Name-First: Jochen
Author-X-Name-Last: Lüdering
Title: Standing and ‘survival’ in the adult film industry
Abstract: 
 It is conventional wisdom that knowing the right people is essential for one’s career. This claim is supported in the literature on social capital. However, the empirical evidence in this field remains ambiguous. While the literature recognizes that ‘connections’ help finding any job at all, it remains unclear if long-term benefits exist. In contrast to other industries, collaborations between performers in adult films are easily observed. Consequently, a collaborative network can be constructed which serves as an input in order to estimate the effect of a person’s centrality on individual success. Unfortunately, success is not easily observed either. Hence, in this manuscript, the survival in the industry is used as a proxy for professional success. This assumption is justified by the economic argument that, in the absence of lock-in effects, performers will remain in the industry as long as it remains profitable. The profitability does not only depend on monetary aspects but also includes costs from social stigma and adverse effects on health and mental well-being. Using a combination of network analysis and duration models, the results indicate that there is a strong correlation between network centrality and survival in the adult film industry.
Journal: Applied Economics
Pages: 1812-1823
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374542
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374542
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1812-1823




Template-Type: ReDIF-Article 1.0
Author-Name: Jerrod Penn
Author-X-Name-First: Jerrod
Author-X-Name-Last: Penn
Author-Name: Wuyang Hu
Author-X-Name-First: Wuyang
Author-X-Name-Last: Hu
Title: Euthanizing value of a statistical life: monetizing differences in public perception and alternatives
Abstract: 
 There is some controversy associated with the language describing monetary values for changes in health or mortality risks, especially the term ‘value of a statistical life’ (VSL). We investigate if the general public distinguishes differences in language describing the concept of VSL using four different descriptive treatments. Based on a survey of willingness to accept (WTA) in which individuals receive payment to participate in a future study, results show that the general public does not perceive a difference in the language used to describe changes in risks. This suggests that public objections to the VSL may not be caused by the specific description used nor can be ameliorated by refinement. Further, the results alleviate concern that language chosen may affect respondent participation and welfare estimates. Because of its apparent absence in the literature, we also adapt and demonstrate a non-parametric conservative estimate of WTA.
Journal: Applied Economics
Pages: 1824-1836
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374543
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374543
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1824-1836




Template-Type: ReDIF-Article 1.0
Author-Name: Samantha Bielen
Author-X-Name-First: Samantha
Author-X-Name-Last: Bielen
Author-Name: Wim Marneffe
Author-X-Name-First: Wim
Author-X-Name-Last: Marneffe
Title: Testing the lawyer-induced litigation hypothesis in Europe
Abstract: 
 Utilizing a European panel dataset, we contribute to the scant empirical literature on the lawyer-induced litigation hypothesis. To address endogeneity problems that arise when estimating the effect of the number of lawyers on civil litigation rates, we use two strategies. We first estimate our model by means of the 2SLS procedure. Second, we exploit the instrumental variable approach based on the linear GMM estimator of Arellano and Bond. The estimations result in a positive and significant effect of lawyers that is robust across the different model specifications and estimation methods in which we address endogeneity. In criminal litigation, where lawyers cannot induce demand, we find no such positive relation between lawyers and litigation.
Journal: Applied Economics
Pages: 1837-1851
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374544
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374544
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1837-1851




Template-Type: ReDIF-Article 1.0
Author-Name: Huy Nguyen Anh Pham
Author-X-Name-First: Huy Nguyen Anh
Author-X-Name-Last: Pham
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Leslie Moyan
Author-X-Name-First: Leslie
Author-X-Name-Last: Moyan
Title: The wealth effect and diamond risk structure of financial regulation
Abstract: 
 The objective of this article was to evaluate the effect of announcements of financial regulation on risk and return in the Vietnamese equity market. The techniques used for the purpose of analysing risk and return include event study and non-parametric tests, as well as asset pricing models supplemented with interaction variables and a variety of ARCH-like specifications such as GARCH, TARCH, EGARCH and PARCH. We find evidence for the wealth effect, the presence of delayed response and a risk shifting behaviour in the form of diamond risk structure. Our results show that abnormal returns are present around the announcements of operating rules and other stock market regulations. Abnormal returns can also be obtained after considering legal documents such as circulars and decisions.
Journal: Applied Economics
Pages: 1852-1865
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380287
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380287
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1852-1865




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Siranova
Author-X-Name-First: Maria
Author-X-Name-Last: Siranova
Author-Name: M. Workie Tiruneh
Author-X-Name-First: M. Workie
Author-X-Name-Last: Tiruneh
Title: Exploding net errors and omissions as a capital flight phenomenon: the case of Slovakia
Abstract: 
 This article empirically explores determinants of net errors and omissions (NEO) of Slovakia during the 1997–2014 period, with emphasis on the 2008–2014 sub-period when a distinct downturn in the NEO time series is observed. Given the statistically significant link between the evolution of foreign direct investments and NEO, we cannot rule out possible prevalence of tax optimization as a part of capital flight phenomenon in developed countries. Our findings also suggest that services sector plays a pivotal role in determining the adverse NEO development in the post-2008 period. However, given the absence of detailed bidirectional data for trade with services, role of misinvoicing practices in the Slovak balance of payments statistics might not be further investigated. Our results further strengthen the call for a deeper understanding of forces driving the NEO evolution in other developed and developing countries suffering from capital flight phenomenon.
Journal: Applied Economics
Pages: 1866-1884
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380288
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380288
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1866-1884




Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Mauck
Author-X-Name-First: Nathan
Author-X-Name-Last: Mauck
Author-Name: Stephen W. Pruitt
Author-X-Name-First: Stephen W.
Author-X-Name-Last: Pruitt
Title: The valuation of patents using third-party data: the Ocean Tomo 300 Patent Index
Abstract: 
 This study is the first investigation of the ability of the financial marketplace to value patent assets via exploiting the informational content of a widely quoted stock market patent index known as the Ocean Tomo 300 Patent Index (OT 300). The results suggest that the OT 300 ‘works,’ in the sense that the index generates buy-and-hold returns economically and statistically in excess of those of the market as a whole as well as a specially created 300-firm benchmark portfolio composed of other very liquid patent-holding firms.
Journal: Applied Economics
Pages: 3995-3998
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150947
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150947
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:3995-3998




Template-Type: ReDIF-Article 1.0
Author-Name: Lumengo Bonga-Bonga
Author-X-Name-First: Lumengo
Author-X-Name-Last: Bonga-Bonga
Author-Name: Ekerete Umoetok
Author-X-Name-First: Ekerete
Author-X-Name-Last: Umoetok
Title: The effectiveness of index futures hedging in emerging markets during the crisis period of 2008-2010: Evidence from South Africa
Abstract: 
 This article provides an assessment of the comparative effectiveness of four econometric methods in estimating the optimal hedge ratio in an emerging equity market, particularly the South African equity and futures markets. The article bases the effectiveness of hedging on volatility reduction and minimization of the coefficient of variation of hedged returns as well as risk-aversion-based utility maximization. The empirical analysis shows that the vector error-correction method and multivariate generalized autoregressive conditional heteroscedasticity methods are most effective over relatively long horizon, weekly and monthly hedging periods.
Journal: Applied Economics
Pages: 3999-4018
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150948
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150948
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:3999-4018




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Jim M. Mariano
Author-X-Name-First: Marc Jim M.
Author-X-Name-Last: Mariano
Author-Name: James A. Giesecke
Author-X-Name-First: James A.
Author-X-Name-Last: Giesecke
Title: Forecasting development outcomes under alternative surplus labour assumptions
Abstract: 
 Economic forecasts are useful to policymakers both as aids to planning, and as baselines against which counterfactual scenarios can be compared. However, policy makers should be aware that assumptions relating to model structure can influence forecast results. We explore the sensitivity of forecasts to one aspect of model structure important in modelling developing economies: surplus agricultural labour. We outline a framework for modelling surplus agricultural labour that relies on average product remuneration. We embed this within a model of a developing economy (the Philippines) characterized by surplus agricultural labour. We compare the results of two forecasts that differ in their treatment of the agricultural labour market. In the first, the surplus labour theory is activated, establishing average product remuneration in agriculture. In the second, the surplus labour theory is not activated, creating a failure to recognize average product remuneration in agriculture. By comparing the two simulations, we show that failure to model the presence of average product remuneration, when it would be appropriate to do so, has an impact that would be material to economic planners, leading them to: under-estimate agricultural employment; over-estimate GDP growth; and, over-estimate important policy variables (like tax revenue) that are related to GDP growth.
Journal: Applied Economics
Pages: 4019-4032
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150949
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150949
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4019-4032




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Youssef El-Khatib
Author-X-Name-First: Youssef
Author-X-Name-Last: El-Khatib
Title: An extension of the asymmetric causality tests for dealing with deterministic trend components
Abstract: 
 This article extends the asymmetric causality tests, as developed by Hatemi-J (2012), for dealing with deterministic trend parts. It is shown how integrated variables up to three degrees with deterministic trend parts can be transformed into positive and negative cumulative partial components. These cumulative components can be used for implementing the asymmetric causality tests based on a Wald test statistic that is shown to follow a chi-square distribution asymptotically. Each solution is expressed as a proposition and a mathematic proof is provided for each underlying proposition. This issue is important because most economic or financial variables seem to be characterized by both stochastic as well as deterministic trend parts. An empirical application is provided in order to show how the oil prices and the exchange rates as integrated variables with drift and trend can be transformed into cumulative partial sums of positive and negative components. The conducted causality tests reveal that allowing for asymmetry has important repercussions for the underlying causal inference between these two variables.
Journal: Applied Economics
Pages: 4033-4041
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150950
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150950
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4033-4041




Template-Type: ReDIF-Article 1.0
Author-Name: José Félix Sanz-Sanz
Author-X-Name-First: José Félix
Author-X-Name-Last: Sanz-Sanz
Author-Name: Juan Manuel Castañer-Carrasco
Author-X-Name-First: Juan Manuel
Author-X-Name-Last: Castañer-Carrasco
Author-Name: Desiderio Romero-Jordán
Author-X-Name-First: Desiderio
Author-X-Name-Last: Romero-Jordán
Title: Consumption tax revenue and personal income tax: analytical elasticities under non-standard tax structures
Abstract: 
 This article models the elasticity of consumption taxation faced with changes in disposable income. Its calculation makes clear the importance of the design of the personal income tax and of the changes caused to the consumption of taxpayers. The modelling is performed for both individual taxpayers and the population as a whole.
Journal: Applied Economics
Pages: 4042-4050
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150951
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150951
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4042-4050




Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Feito-Ruiz
Author-X-Name-First: Isabel
Author-X-Name-Last: Feito-Ruiz
Author-Name: Clara Cardone-Riportella
Author-X-Name-First: Clara
Author-X-Name-Last: Cardone-Riportella
Author-Name: Susana Menéndez-Requejo
Author-X-Name-First: Susana
Author-X-Name-Last: Menéndez-Requejo
Title: Reverse takeover: the moderating role of family ownership
Abstract: 
 The aim of this study was to analyse the determinants of reverse takeovers, examining the influence of target firm shareholders’ type in the agreement. We examine reverse takeovers implemented in the Alternative Investment Market between 1999 and 2012, paying special attention to the differences between family and non-family target firms, as well as the impact of the financial crisis.We propose that family firms have a lower probability of accepting a reverse takeover (‘shell’ firm), to avoid both diluting the ownership structure (loss of control) and new shareholders entering their firm. Our main findings show that the higher the percentage of ownership held by family holders, the lower the probability of their being the target firm in a reverse takeover. This effect is maintained during the crisis period, in accordance with the expectation that family firms will have fewer financial constraints.
Journal: Applied Economics
Pages: 4051-4065
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150952
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150952
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4051-4065




Template-Type: ReDIF-Article 1.0
Author-Name: W. Heynderickx
Author-X-Name-First: W.
Author-X-Name-Last: Heynderickx
Author-Name: J. Cariboni
Author-X-Name-First: J.
Author-X-Name-Last: Cariboni
Author-Name: W. Schoutens
Author-X-Name-First: W.
Author-X-Name-Last: Schoutens
Author-Name: B. Smits
Author-X-Name-First: B.
Author-X-Name-Last: Smits
Title: The relationship between risk-neutral and actual default probabilities: the credit risk premium
Abstract: 
 The study investigates empirically the relationship between the risk-neutral measure Q and the real-world measure P. We study the ratio between the risk-neutral and actual default intensities, which we call the coverage ratio or the relative credit risk premium. Actual default intensities are derived from rating agencies annual transition matrices, while risk-neutral default intensities are bootstrapped from CDS quotes of European corporates. We quantify the average risk premium and its changes over time. Compared to related literature, special attention is given to the effects of the recent financial and European sovereign crises. We find that average credit risk premia rose substantially and that post-crisis levels are still higher than those observed before the financial crisis. This observation is especially true for high-quality debt and if it persists, it will have an impact on corporates funding costs. The quantification and revision of risk premia contributes to the discussion of the credit spread puzzle and could give extra insights in valuation models that start from real-world estimates. Our work is furthermore important in the context of state aid assessment. The real economic value (REV) methodology, applied by the European Commission to evaluate impaired portfolios, is based on a long-term average risk premium.
Journal: Applied Economics
Pages: 4066-4081
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150953
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150953
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4066-4081




Template-Type: ReDIF-Article 1.0
Author-Name: Regan Deonanan
Author-X-Name-First: Regan
Author-X-Name-Last: Deonanan
Author-Name: Kevin Williams
Author-X-Name-First: Kevin
Author-X-Name-Last: Williams
Title: The effect of remittances on democratic institutions
Abstract: 
 Do remittances promote stronger democratic institutions in developing countries? We study the effect of workers’ remittances on the quality of democracy in developing countries, and examine how government spending mediates the effect of workers’ remittances on the quality of democratic institutions. Using a dynamic panel estimator on data from 133 developing countries over 1972–2012, we find that workers’ remittances improve the quality of democratic institutions. We also find that workers’ remittances are more effective in promoting democratic institutions in developing countries with low government spending.
Journal: Applied Economics
Pages: 403-416
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200180
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200180
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:403-416




Template-Type: ReDIF-Article 1.0
Author-Name: César Alonso-Borrego
Author-X-Name-First: César
Author-X-Name-Last: Alonso-Borrego
Author-Name: Antonio Romero-Medina
Author-X-Name-First: Antonio
Author-X-Name-Last: Romero-Medina
Author-Name: Rocío Sánchez-Mangas
Author-X-Name-First: Rocío
Author-X-Name-Last: Sánchez-Mangas
Title: The impact of public research contracts on scientific productivity
Abstract: 
 We analyse a competitive research-oriented public programme established in Spain, the Ramon y Cajal Programme, intended to offer contracts in public research centres to high-quality researchers. We study the effects of the programme on the ex post scientific productivity of its recipients, relative to non-granted applicants with comparable curricula at the time of application. The full sample results demonstrate that the programme has a positive and significant effect on the scientific productivity of the recipients, as measured both by the amount of published contribution and by the impact of their publications. Consequently, receiving a contract affects the quantity, but also increases the quality, of the contract recipients’ publications.
Journal: Applied Economics
Pages: 417-432
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200181
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200181
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:417-432




Template-Type: ReDIF-Article 1.0
Author-Name: Andrei Shynkevich
Author-X-Name-First: Andrei
Author-X-Name-Last: Shynkevich
Title: Return predictability in emerging equity market sectors
Abstract: 
 This article investigates the predictive power of technical trading rules in the emerging equity market sector portfolios and finds that trading strategies based on technical indicators significantly outperform the buy-and-hold benchmark. Combination of data snooping bias, data measurement errors in the form of non-synchronicity bias and fluctuations in currency exchange rates is unable to explain the observed outperformance. The introduction of transaction costs tempers the results but technical analysis still possesses significant predictive power for a number of sectors. The performance of technical analysis in the emerging equity market sectors does not conform to historical trends observed in the developed equity markets as well as in the emerging equity markets when broadly diversified portfolios are considered, where predictive power of technical trading rules has been shown to decline over time.
Journal: Applied Economics
Pages: 433-445
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200182
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200182
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:433-445




Template-Type: ReDIF-Article 1.0
Author-Name: Chune Young Chung
Author-X-Name-First: Chune Young
Author-X-Name-Last: Chung
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Title: Institutional investors and opportunistic seasoned equity offerings in the Korean stock market
Abstract: 
 This study examines the impact of institutional monitoring on opportunistic seasoned equity offerings (SEOs) in the Korean stock market. With a firm’s accrual quality as a measurement for the degree of information asymmetry between managers and investors, we hypothesize that the managers of firms with poor accrual quality are likely to engage in opportunistic SEOs, but such opportunistic activity is weak in firms strongly monitored by institutional investors. The empirical findings indicate that opportunistic SEOs tend to be deterred by institutional monitoring.
Journal: Applied Economics
Pages: 446-455
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200183
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200183
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:446-455




Template-Type: ReDIF-Article 1.0
Author-Name: Golam Sarwar
Author-X-Name-First: Golam
Author-X-Name-Last: Sarwar
Author-Name: Cesario Mateus
Author-X-Name-First: Cesario
Author-X-Name-Last: Mateus
Author-Name: Natasa Todorovic
Author-X-Name-First: Natasa
Author-X-Name-Last: Todorovic
Title: A tale of two states: asymmetries in the UK small, value and momentum premiums
Abstract: 
 This article performs comparative analysis of the asymmetries in size, value and momentum premium and their macroeconomic determinants over the UK economic cycles, using Markov switching approach. We associate Markov switching regime 1 with economic upturn and regime 2 with economic downturn. We find clear evidence of cyclical variations in the three premiums, most notable being that in the size premium, which changes from positive in expansions to negative in recessions. Macroeconomic indicators prompting such cyclicality the most are variables that proxy credit market conditions, namely the interest rates, term structure and credit spread. Overall, macro factors tend to have more significant impact on the three premiums during economic downturns. The results are robust to the choice of information variable used in modelling transition probabilities of the two-stage Markov switching model. We show that exploiting cyclicality in premiums proves particularly profitable for portfolios featuring small cap stocks in recessions at a feasible level of transaction costs.
Journal: Applied Economics
Pages: 456-476
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200184
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200184
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:456-476




Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: Using the travel cost method to value visits and stigma in connection with ARV adherence in Uganda
Abstract: 
 This article uses the travel cost method to value both client visits to collect antiretroviral therapy (ARV) and stigma, which prevents ARV adherence. Using a representative sample for Uganda initiated specifically for this study, we found a willingness to pay (WTP) valuation for visits made in the range of US$14–US$17 and a willingness to accept (WTA) valuation of US$25 for visits missed. The valuations for stigma based on a novel measure of stigma using a new estimation method were close to the valuations for visits. These valuations can be used to estimate the benefits to carry out cost–benefit analyses (CBAs) of interventions aimed at increasing ARV coverage and adherence.
Journal: Applied Economics
Pages: 477-497
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200185
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200185
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:477-497




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name: Yu Hao
Author-X-Name-First: Yu
Author-X-Name-Last: Hao
Title: Environmental performance, corruption and economic growth: global evidence using a new data set
Abstract: 
 This study investigates the relationship between environmental performance, corruption and economic growth using panel data of 87 countries covering the period from 2002 to 2012. The Environmental Performance Index is used for the first time to evaluate the environmental quality on economic growth. By employing both ‘static’ and ‘dynamic’ panel models, we find that environmental performance is positively related to economic growth and is more significant in non-Organization for Economic Cooperation Development (OECD) countries. Moreover, when corruption is incorporated, the empirical estimation results indicate that although lower corruption helps economic growth in non-OECD countries, the negative coefficients of the three interactive terms show that the positive effect of environment performance on economic growth will drop, while greater environmental performance combined with natural resource abundance inevitably leads to inefficient bureaucracies and hence disadvantageous economic growth. As a result, policymakers in non-OECD countries should carefully ensure better government quality when they exhibit strong environmental performance so as to avoid any disadvantageous impact upon economic growth.
Journal: Applied Economics
Pages: 498-514
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200186
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200186
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:498-514




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1226062
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226062
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:i-i




Template-Type: ReDIF-Article 1.0
Author-Name: Luca Vincenzo Ballestra
Author-X-Name-First: Luca Vincenzo
Author-X-Name-Last: Ballestra
Author-Name: Graziella Pacelli
Author-X-Name-First: Graziella
Author-X-Name-Last: Pacelli
Author-Name: Davide Radi
Author-X-Name-First: Davide
Author-X-Name-Last: Radi
Title: Valuing investment projects under interest rate risk: empirical evidence from European firms
Abstract: 
 In this article, we perform an empirical investigation of the effect of the interest rate uncertainty on the valuation of investment projects. The analysis is carried out by employing a real option approach and by considering a set of firms that operate in various production sectors in the euro area. In particular, the revenues generated by the investment projects are modelled using a geometric Brownian motion, whereas the interest rate is specified as a stochastic process of Vasicek type. Moreover, using the volatility of the equity return as a proxy, the volatility of the revenues is calibrated to real firm data, while the parameters of the interest rate model are estimated by fitting the Euribor time series. To this aim, an ad hoc calibration procedure is developed which is based on the maximum likelihood principle and thus has the merit of being simple, fast and suitable for practical purposes. Our study reveals that the interest rate uncertainty reduces the valuation of investment projects. However, stochastic interest rates do not provide a substantial improvement with respect to constant interest rates, or at least the differences are not statistically significant.
Journal: Applied Economics
Pages: 5662-5672
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1327120
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1327120
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5662-5672




Template-Type: ReDIF-Article 1.0
Author-Name: B. C. Dealy
Author-X-Name-First: B. C.
Author-X-Name-Last: Dealy
Author-Name: B. P. Horn
Author-X-Name-First: B. P.
Author-X-Name-Last: Horn
Author-Name: A. K. Bohara
Author-X-Name-First: A. K.
Author-X-Name-Last: Bohara
Author-Name: R. P. Berrens
Author-X-Name-First: R. P.
Author-X-Name-Last: Berrens
Author-Name: A. D. Bryan
Author-X-Name-First: A. D.
Author-X-Name-Last: Bryan
Title: The impact of behavioural risk-reduction interventions on willingness to pay to avoid sexually transmitted infections: a stated preference study of justice-involved youth
Abstract: 
 Risky health behaviours, such as smoking, drinking and risky sex, are substantial contributors to the U.S. morbidity rates and healthcare costs. While economic models typically regard preferences as stable, a growing literature suggests that information, including how it interacts with intentions and attitudes, plays an important role in unhealthy behaviours. Relatedly, a large health literature demonstrates that theory-based behavioural interventions can successfully change risky behaviour. This study uses the contingent valuation (CV) survey method to investigate the impact of behavioural interventions on a novel outcome measure: the willingness to pay (WTP) to avoid the consequences associated with risky behaviour. Using novel pre- and post-intervention data from Project MARS (Motivating Adolescents to Reduce Sexual Risk), this study estimates the impact of the intervention on elicited WTP to avoid sexually transmitted infections (STIs). It is found that after the intervention, participants’ elicited WTP to avoid STIs were significantly higher, and more sensitive to differences in infection severity. These results suggest that the intervention may affect risky sexual behaviour by changing the perceived value of avoiding the consequences of risky sexual behaviour. Additionally, these findings contribute to an ongoing debate regarding the construct validity of CV studies in health economics.
Journal: Applied Economics
Pages: 5673-5685
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1332744
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332744
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5673-5685




Template-Type: ReDIF-Article 1.0
Author-Name: Steven C. Deller
Author-X-Name-First: Steven C.
Author-X-Name-Last: Deller
Author-Name: Tessa Conroy
Author-X-Name-First: Tessa
Author-X-Name-Last: Conroy
Author-Name: Philip Watson
Author-X-Name-First: Philip
Author-X-Name-Last: Watson
Title: Women business owners: a source of stability during the great recession?
Abstract: 
 During the period of the Great Recession, previous research has found that women-owned firms were less likely to lay-off workers than were firms owned by men. Given that the individual firm behaviour has a cumulative effect on regional economic performance, we expect greater stability across those regions with a larger share of women-owned and managed businesses. We test this hypothesis using US county data during the period from 2007 to 2013 at the US county level. Consistent with the findings of Matsa and Miller, our results suggest that regional economic stability increases with the share of women-owned and managed establishments.
Journal: Applied Economics
Pages: 5686-5697
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1332745
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332745
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5686-5697




Template-Type: ReDIF-Article 1.0
Author-Name: Carl Sherwood
Author-X-Name-First: Carl
Author-X-Name-Last: Sherwood
Author-Name: Do Won Kwak
Author-X-Name-First: Do Won
Author-X-Name-Last: Kwak
Title: New insights into an old problem – enhancing student learning outcomes in an introductory statistics course
Abstract: 
 Many students enrolled in first year introductory statistics courses believe learning statistics is a waste of time and fear they will fail. In this study, we explored the impacts on learning outcomes for students in an introductory statistics course by allowing students to arbitrarily choose their own sequence of learning from three key learning activities, namely tutorials, Peer-Assisted Study Sessions and Computer-Managed Learning quizzes. Unlike the old regime where the learning activities followed a strict, rigid sequence, a new regime allowed students to freely choose when, where and how they engaged with the course learning activities. This allowed increased opportunities for students to receive relevant and timely feedback. Using a total of 1187 students enrolled in semester 2 of 2011, 2012 and 2013, data were collected on students’ scores from 7 assessment tasks. Our experimental design ensured as many course features as possible remained constant between the control cohorts (of 2011 and 2012) and the experimental cohort (2013), thereby avoiding potential sample selection problems. The findings showed student learning outcomes in the new regime improved significantly. Interestingly, the effects were found to be greatest in the lower percentile of the score distribution.
Journal: Applied Economics
Pages: 5698-5708
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1332750
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332750
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5698-5708




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Ching Yang
Author-X-Name-First: Chih-Ching
Author-X-Name-Last: Yang
Title: Local resource reallocation considering practical feasibility: a centralized data envelopment analysis approach
Abstract: 
 Many studies have addressed resource allocation issues by using centralized data envelopment analysis models. However, few of them provided a local resource reallocation plan which may be carried out more easily. This article proposes two models to get such plans. The first one considers an acceptable percentage of changes in resources to ensure practical feasibility. The second one further considers a situation where resources can only be allowed to shift within specific units. The proposed models are applied to an empirical study based on a hospital system in Taiwan. To demonstrate the practical feasibility of the suggested plans, we compare our reallocation suggestions to a plan that can make the whole system be perfectly efficient. The main conclusion is that the plans derived from our models are more practically feasible than that with perfect efficiency.
Journal: Applied Economics
Pages: 5709-5721
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1332754
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332754
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5709-5721




Template-Type: ReDIF-Article 1.0
Author-Name: Paul A. Raschky
Author-X-Name-First: Paul A.
Author-X-Name-Last: Raschky
Author-Name: Liang Choon Wang
Author-X-Name-First: Liang Choon
Author-X-Name-Last: Wang
Title: Reproductive behaviour at the end of the world: the effect of the Cuban Missile Crisis on U.S. fertility
Abstract: 
 We exploit the timing of the Cuban Missile Crisis and the geographical variation in mortality risks individuals faced across states to analyse reproduction decisions during the crisis. The results of a difference-in-differences approach show evidence that fertility decreased in states that are farther from Cuba and increased in states with more military installations. Our findings suggest that individuals are more likely to engage in reproductive activities when facing high mortality risks, but reduce fertility when facing a high probability of enduring the aftermath of a catastrophe.
Journal: Applied Economics
Pages: 5722-5727
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340571
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340571
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5722-5727




Template-Type: ReDIF-Article 1.0
Author-Name: Bo Liu
Author-X-Name-First: Bo
Author-X-Name-Last: Liu
Author-Name: Qing Xu
Author-X-Name-First: Qing
Author-X-Name-Last: Xu
Author-Name: Jinqiang Yang
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Yang
Author-Name: Shunchen Zhang
Author-X-Name-First: Shunchen
Author-X-Name-Last: Zhang
Title: Liquidity default, liquidity management and smooth dividends policy
Abstract: 
 Our article models liquidity financing constraints with the real options framework. By conducting a comprehensive investigation of the effects of shocks to liquidity constraints on the firm’s optimal investment, financing and dividend policies, our model highlights the importance of liquidity management and extends the liquidity management approach to hedge liquidity default risk. We find that being concerned about liquidity default risk will significantly change a firm’s behaviours, including those related to investment and the optimal capital structure. A firm that is concerned about its liquidity default risk will become more cautious: it will choose to delay investment and have higher leverage when internal liquidity is very low, but choose earlier investment and lower leverage when liquidity is high enough. The dividends policy can alleviate risks from both the external market and internal project volatility and provides an alternative explanation for the ‘smooth dividends policy puzzle’ commonly reported in empirical research.
Journal: Applied Economics
Pages: 5728-5739
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1361006
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361006
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5728-5739




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Haupenthal
Author-X-Name-First: Andreas
Author-X-Name-Last: Haupenthal
Author-Name: Matthias Neuenkirch
Author-X-Name-First: Matthias
Author-X-Name-Last: Neuenkirch
Title: Grexit news and stock returns
Abstract: 
 During the first 8 months of 2015, there was an ongoing debate about whether or not Greece should remain in the euro area. Using an event study approach, we quantify the effects of Grexit-related statements made by six important euro area politicians (Merkel, Schaeuble, Tsipras, Varoufakis, Juncker, and Schulz) on intraday stock returns in Germany, Greece, and the euro area during the period of 1 January 2015–19 August 2015. We show that positive statements indicating that a Grexit is less likely lead to higher returns, and negative statements to lower returns. The overall impact of negative statements is more pronounced. The cumulative absolute effects on stock returns are sizeable as the statements contribute to a variation of up to 58 percentage points in the ATHEX. These large effects are of particular relevance as our study only captures an 8-month snapshot of the Greek Government debt crisis.
Journal: Applied Economics
Pages: 3891-3898
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270418
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270418
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3891-3898




Template-Type: ReDIF-Article 1.0
Author-Name: Ozan Eksi
Author-X-Name-First: Ozan
Author-X-Name-Last: Eksi
Author-Name: Neslihan Kaya Eksi
Author-X-Name-First: Neslihan
Author-X-Name-Last: Kaya Eksi
Author-Name: Umit Ozlale
Author-X-Name-First: Umit
Author-X-Name-Last: Ozlale
Title: A comparison of optimal policy rules prior to and during inflation targeting: empirical evidence from Bank of Canada
Abstract: 
 We examine policy rules that are consistent with inflation targeting (IT) framework in a small macroeconomic model of the Canadian economy. We set up an optimal linear regulator problem and derive policy rules to compare the dynamics of pre-IT and IT eras. We find that while the optimal monetary policy rule in the pre-IT period is best described with a loss function that attaches equal weight to price stability, financial stability and output stability; the IT era is dominated by the price stability objective followed by the financial stability and output stability, consecutively. Moreover, we do not find an explicit role for exchange rate stability in the objective function of the Bank of Canada for both monetary policy eras. We, then, compare the properties of the derived optimal rules with those of an ad hoc Taylor rule for the IT period. In response to inflationary shocks, Taylor rule brings down inflation rates more quickly compared to the derived policy rules, but at the cost of a higher sacrifice ratio and more volatile interest rates.
Journal: Applied Economics
Pages: 3899-3911
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273488
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273488
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3899-3911




Template-Type: ReDIF-Article 1.0
Author-Name: Javier García-Enríquez
Author-X-Name-First: Javier
Author-X-Name-Last: García-Enríquez
Author-Name: Josu Arteche
Author-X-Name-First: Josu
Author-X-Name-Last: Arteche
Author-Name: Arantza Murillas-Maza
Author-X-Name-First: Arantza
Author-X-Name-Last: Murillas-Maza
Title: Testing for substitutability in the mackerel market: a new method using fractional cointegration
Abstract: 
 This article seeks to extend knowledge of the mackerel (Scomber scombrus) market in the Basque Country (a region in Spain) by analysing possible relationships between this and other species with similar characteristics such as the sardine (Sardina pilchardus), the horse mackerel (Trachurus trachurus) and the Atlantic chub mackerel (Scomber colias), all of them landed at the ports of the Basque Country. Specifically, the goal is to learn whether these other species can be considered as mackerel substitutes. To that end, a fractional cointegration analysis of different series of historical prices is performed using a novel method never before used in studies of this type. The results indicate that mackerel have no substitutes, and thus form a mono-species regional market. This implies, among other things, that their price is not influenced by the prices of other species, and this should be taken into account by managers when designing management measures and policies to improve the sustainability of the fishing of this species.
Journal: Applied Economics
Pages: 3912-3926
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273490
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273490
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3912-3926




Template-Type: ReDIF-Article 1.0
Author-Name: Daehoon Nahm
Author-X-Name-First: Daehoon
Author-X-Name-Last: Nahm
Author-Name: Michael Dobbie
Author-X-Name-First: Michael
Author-X-Name-Last: Dobbie
Author-Name: Craig MacMillan
Author-X-Name-First: Craig
Author-X-Name-Last: MacMillan
Title: Union wage effects in Australia: an endogenous switching approach
Abstract: 
 Using data from the Household and Labour Income Dynamics Australia (HILDA), an endogenous switching model is employed to analyse union wage effects in Australia between 2001 and 2013. An advantage of this approach is that the decision to join a union is treated as potentially endogenous, a function of the wage differential between union and non-union workers, rather than exogenous as is the case in virtually all previous Australian studies. The article finds that the decision to join a union is highly sensitive to the wage differential between union and non-union workers. The article also finds that male (female) union workers with average union characteristics earn 12% (18%) more than male (female) non-union workers with average non-union characteristics. However, a decomposition analysis finds that this difference is due to union workers having better human capital endowments than their non-union counterparts. In addition, they also receive a lower return for those endowments. These decomposition results suggest that union wage effects in Australia may be negative, rather than the small positive effects typically found in the Australian literature.
Journal: Applied Economics
Pages: 3927-3942
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273492
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273492
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3927-3942




Template-Type: ReDIF-Article 1.0
Author-Name: Youyu Chen
Author-X-Name-First: Youyu
Author-X-Name-Last: Chen
Author-Name: Tong Shu
Author-X-Name-First: Tong
Author-X-Name-Last: Shu
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Author-Name: Lu Gan
Author-X-Name-First: Lu
Author-X-Name-Last: Gan
Title: Strong–weak collaborative management in coping supply chain disruption risk transmission based on scale-free networks
Abstract: 
 Supply chain disruption causes tremendous loss to supply chains and global businesses. Organizational structure and operational features of supply chain networks, therefore, constitute a major portion of research for coping with supply chain disruption risk. This article first discusses the theoretical foundation, analyses the strength theory of strong and weak ties and the collaborative theory of strong and weak ties. Also, research methods are explicated; the scale-free networks and the theory of strong ties are integrated; the features of supply chain networks are considered from single statistical parameters and comprehensive analyses. Next, we provide numeric simulation of the properties of supply chain networks, verifying the accuracy of parameter analyses of single statistics and comprehensive analyses. Ultimately, when coping with supply chain disruption risk, each node enterprise of supply chain network is supposed to deploy the characteristics of scale-free networks to systematically manage existing weak ties, weak ties newly introduced, existing strong ties and strong ties newly introduced. This study is conducive to node enterprises of supply chains to recognize and apply the scale-free networks and the strength theory of ties to analyze the properties of supply chain networks, and to improve the capacity to cope with disruption risk.
Journal: Applied Economics
Pages: 3943-3958
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273494
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273494
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3943-3958




Template-Type: ReDIF-Article 1.0
Author-Name: Slah Bahloul
Author-X-Name-First: Slah
Author-X-Name-Last: Bahloul
Author-Name: Mourad Mroua
Author-X-Name-First: Mourad
Author-X-Name-Last: Mroua
Author-Name: Nader Naifar
Author-X-Name-First: Nader
Author-X-Name-Last: Naifar
Title: Further evidence on international Islamic and conventional portfolios diversification under regime switching
Abstract: 
 This article investigates the comparative performance of International Islamic and conventional portfolio diversification across different financial market regimes and provides an optimal choice from an American investor’s viewpoint during the period 2002–2014. Using a bootstrap-based stochastic dominance (SD) test and monthly MSCI prices of Islamic stock market indices and their conventional counterparts in 38 countries from North and Latin America, Europe and Asia-Pacific regions, we find that SD relationships between Islamic and conventional optimal-diversified portfolios change systematically according to investment region and market regime. Essentially, for all regimes, US investors are indifferent between Islamic diversification and its conventional counterpart, which implies that arbitrage diversification opportunities are rare and short lived in all regions. However, across all regions, especially in a crisis regime, Islamic portfolio diversification can be a good substitute for conventional diversification. Islamic portfolio diversification in North and Latin America, Europe and Global regions is an optimal choice for the risk-averse American investors. Finally, results imply that portfolio diversification among Islamic market indices can be a good hedge, offering investors superior investment alternatives during any financial meltdown or economic slowdown due to the conservative nature of Sharia-compliant investments.
Journal: Applied Economics
Pages: 3959-3978
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273496
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273496
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3959-3978




Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore Ercolano
Author-X-Name-First: Salvatore
Author-X-Name-Last: Ercolano
Author-Name: Giuseppe Lucio Gaeta
Author-X-Name-First: Giuseppe Lucio
Author-X-Name-Last: Gaeta
Author-Name: Massimo Guarino
Author-X-Name-First: Massimo
Author-X-Name-Last: Guarino
Title: Anti-poverty competences in a multilevel government: an empirical analysis of citizens’ preferences in Europe
Abstract: 
 This article aims to investigate individuals’ perceptions about institutions that should be primarily responsible for reducing or preventing poverty, which is a dramatic phenomenon that became a crucial issue in European countries over recent years. We propose an empirical analysis based on European survey data and investigate some citizens’-level and country-level variables that potentially affect individuals’ attitudes. Our results suggest that country-level economic and institutional characteristics do significantly affect individual preferences for the governance of anti-poverty policies.
Journal: Applied Economics
Pages: 3979-3994
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273499
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273499
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3979-3994




Template-Type: ReDIF-Article 1.0
Author-Name: Robert M. McNab
Author-X-Name-First: Robert M.
Author-X-Name-Last: McNab
Author-Name: Son D. Wilson
Author-X-Name-First: Son D.
Author-X-Name-Last: Wilson
Title: Culture matters: what cultural values influence budget transparency?
Abstract: 
 This article empirically examines whether cultural values significantly influence budget transparency. We employ data for budget transparency from the Open Budget Index, and data for national culture from Hofstede’s cultural dimensions, the Global Leadership and Behavioral Effectiveness Research Project and the World Values Survey to explore this question. We find evidence that individualism positively influences budget transparency. We also find that stronger preferences for institutional collectivism, masculinity and authoritarian rule lower budget transparency. These results suggest that national culture shapes preferences for budget transparency and influences the possibility of success for attempts to improve budget transparency across countries.
Journal: Applied Economics
Pages: 4593-4605
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458197
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458197
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4593-4605




Template-Type: ReDIF-Article 1.0
Author-Name: Kadir Atalay
Author-X-Name-First: Kadir
Author-X-Name-Last: Atalay
Author-Name: Rong Zhu
Author-X-Name-First: Rong
Author-X-Name-Last: Zhu
Title: The effect of a wife’s retirement on her husband’s mental health
Abstract: 
 This article examines the effect of wives’ retirement on their husband’s mental health in Australia. By exploiting the exogenous variations in women’s retirement induced by the age pension qualifying ages, we find that spousal retirement status has a positive impact on the mental health of older men. This beneficial impact is found to strengthen with wives’ time spent in retirement. We show that wife’s retirement affects the constituents of her husband’s mental well-being in different ways. We also have identified four channels for the positive linkage between older women’s retirement and the mental health of their spouse.
Journal: Applied Economics
Pages: 4606-4616
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458198
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458198
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4606-4616




Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner
Author-X-Name-First: Richhild
Author-X-Name-Last: Moessner
Title: Effects of asset purchases and financial stability measures on term premia in the euro area
Abstract: 
 We study the effects of the announcements of ECB asset purchases and of financial stability measures in the euro area in the wake of the global financial crisis and the euro area sovereign debt crisis on 10-year government bond term premia in 11 euro area countries. We find that the term premia of euro area countries with higher sovereign risk, as measured by sovereign CDS spreads, decreased more in response to the announcements of asset purchases and financial stability measures. Term premia of countries with lowest sovereign risk either increased as in Germany, or were not significantly affected or fell slightly, as in the Netherlands and Finland.
Journal: Applied Economics
Pages: 4617-4631
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458199
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458199
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4617-4631




Template-Type: ReDIF-Article 1.0
Author-Name: Miia Parnaudeau
Author-X-Name-First: Miia
Author-X-Name-Last: Parnaudeau
Author-Name: Jean-Louis Bertrand
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Bertrand
Title: The contribution of weather variability to economic sectors
Abstract: 
 Every day, people make economic decisions based on the weather, affecting sales of companies in a wide range of economic sectors. In many cases, the impact of weather on sales is not constant from one season to the next. Yet, the existing research to estimate the influence of temperature on annual sales has not analysed the relationship per season, resulting in potential washout effects and underestimated weather impacts. Drawing upon French economic sectors for empirical evidence, we break down the analysis of the relationship between weather and monthly sales by season. Our methodology provides the cumulative annual contribution of weather to sales and allows deriving the maximum potential annual impact of adverse weather. With our results, analysts and risk managers can better understand the exposure to abnormal weather and consider the potential benefits of mitigating weather risk using the weather parameters we identify to structure bespoke index-based financial instruments.
Journal: Applied Economics
Pages: 4632-4649
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458200
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458200
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4632-4649




Template-Type: ReDIF-Article 1.0
Author-Name: Jihui Chen
Author-X-Name-First: Jihui
Author-X-Name-Last: Chen
Author-Name: Dimitrios Nikolaou
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Nikolaou
Title: The role of pregnancy health problems on maternal smoking behaviours
Abstract: 
 To explore the effects of pregnancy health problems (PHPs) on smoking behaviours during and after pregnancy (‘smoking-inducing’ effect), we estimate a two-period model that jointly determines prenatal and postnatal smoking decisions, taking into consideration the presence of PHPs. While PHPs are likely to reduce prenatal (except for heavy smokers) and postnatal smoking propensity, we still observe considerable postnatal relapse in the sample, which can be attributed to smoking addiction, as well as information asymmetries and maternal stress associated with PHPs. Thus, we advocate for smoking cessation policies and programmes throughout and beyond pregnancy to avoid potential intertemporal substitution between prenatal and postnatal cigarette consumption.
Journal: Applied Economics
Pages: 4650-4670
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458201
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458201
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4650-4670




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Ortobelli Lozza
Author-X-Name-First: Sergio
Author-X-Name-Last: Ortobelli Lozza
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Author-Name: Martin Egozcue
Author-X-Name-First: Martin
Author-X-Name-Last: Egozcue
Title: Diversification versus optimality: is there really a diversification puzzle?
Abstract: 
 In this paper, we provide a general valuation of the diversification attitude of investors. First, we empirically examine the diversification of mean-variance optimal choices in the US stock market during the 11-year period 2003–2013. We then analyze the diversification problem from the perspective of risk-averse investors and risk-seeking investors. Second, we prove that investors’ optimal choices will be similar if their utility functions are not too distant, independent of their tolerance (or aversion) to risk. Finally, we discuss investors’ attitude towards diversification when the choices available to investors depend on several parameters.
Journal: Applied Economics
Pages: 4671-4693
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1459037
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1459037
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4671-4693




Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Nguyen
Author-X-Name-First: Jeremy
Author-X-Name-Last: Nguyen
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Mortgage product diversity: responding to consumer demand or protecting lender profit? An asymmetric panel analysis
Abstract: 
 This article explores determinants of mortgage product diversity for owner-occupied and investment loans in the Australian housing mortgage market. From 2001 to 2012, 65 lenders introduced 1220 mortgage products in Australia. We examine whether the product proliferation was a result of consumer demand or a response to pressure to lower lending rates. We find that consumer demand for mortgages does not have a significant relationship with the number of mortgage products, but that decreases in the policy interest rate are highly significant as an explanatory variable for product proliferation. Such behaviour is consistent with information obfuscation, reducing the ease with which consumers can compare lending rates. Further, the relationship between mortgage products offered and the policy interest rate is asymmetric: decreases in the cash rate are associated with increased mortgage products offered, but increases in the cash rate have a more muted effect on decreasing the number of products.
Journal: Applied Economics
Pages: 4694-4704
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1459038
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1459038
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4694-4704




Template-Type: ReDIF-Article 1.0
Author-Name: Md Samsul Alam
Author-X-Name-First: Md Samsul
Author-X-Name-Last: Alam
Author-Name: E A Selva Selvanathan
Author-X-Name-First: E A Selva
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: Moazzem Hossain
Author-X-Name-First: Moazzem
Author-X-Name-Last: Hossain
Title: Causal relationship between apparel exports and macroeconomic factors
Abstract: 
 Apparel exports make a significant contribution to economic growth in major apparel exporting economies such as Bangladesh, Sri Lanka and Vietnam. This study aims to investigate the causal relationship between apparel export growth and its determinants such as GDP growth, infrastructure, financial development, foreign direct investment (FDI) and labour productivity using panel data from 11 major apparel exporting countries for the period 1996 to 2013. The results confirm a long-run equilibrium association among the variables and reveal that GDP growth, infrastructure, financial development, FDI, and labour productivity have a significant positive influence on apparel export growth. Furthermore, the heterogeneous panel non-causality test results suggest that GDP growth, infrastructure and labour productivity contribute to apparel export growth in the short-run. These findings have several policy implications for the governments of the countries under study.
Journal: Applied Economics
Pages: 2687-2702
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1527447
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527447
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2687-2702




Template-Type: ReDIF-Article 1.0
Author-Name: Victor Pontines
Author-X-Name-First: Victor
Author-X-Name-Last: Pontines
Author-Name: Reza Y. Siregar
Author-X-Name-First: Reza Y.
Author-X-Name-Last: Siregar
Title: Non-core liabilities and interest rate pass-through: bank-level evidence from Indonesia
Abstract: 
 The policy importance of non-core liabilities (bank liabilities other than equity and retail deposits) has risen to prominence in recent years with a number of studies highlighting it as a useful indicator of financial procyclicality and vulnerability. In this paper, we look at non-core liabilities in relation to its role in the transmission of monetary policy, particularly by examining how the interest rate channel of monetary policy is affected by non-deposit liabilities. We analyse this issue in the context of an emerging economy experience of Indonesia, which in recent years, has seen an increased reliance of its banking sector on non-core funding. Our investigation employs available bank-level data on non-core liabilities and lending rates in Indonesia over the period October 2011 to July 2016. We find that including non-core liabilities in the estimation has an effect, relative to the baseline, of stronger overall and immediate pass-through, albeit with a more sluggish adjustment towards the correction of disequilibrium in the next period. The overall effect is that non-core liabilities make the duration longer for the monetary policy rate to transmit to bank lending rates in Indonesia.
Journal: Applied Economics
Pages: 2703-2714
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558352
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558352
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2703-2714




Template-Type: ReDIF-Article 1.0
Author-Name: Chuantao Cui
Author-X-Name-First: Chuantao
Author-X-Name-Last: Cui
Author-Name: Leona Shao-Zhi Li
Author-X-Name-First: Leona Shao-Zhi
Author-X-Name-Last: Li
Title: High-speed rail and inventory reduction: firm-level evidence from China
Abstract: 
 Using a balanced panel of manufacturing firms from China between 2007 and 2013, we estimate that being connected to a high-speed rail (HSR) system leads to 9.5% reduction in local firms’ input inventory spending. The effect is stronger for downstream industries and private enterprises. A back-of-envelope calculation suggests that each dollar of HSR investment reduces input inventory stock by 12 cents, which is significantly larger than the effects found in previous studies based on highway or road investment. Declines in transportation and communication cost, as well as agglomeration effect, are identified as plausible mechanisms. Our findings reveal a micro channel through which improved transport infrastructure brings about economic gains, and contribute to the cost-benefit assessment of HSR investment.
Journal: Applied Economics
Pages: 2715-2730
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558353
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558353
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2715-2730




Template-Type: ReDIF-Article 1.0
Author-Name: Yamin Ahmad
Author-X-Name-First: Yamin
Author-X-Name-Last: Ahmad
Author-Name: Ming Chien Lo
Author-X-Name-First: Ming Chien
Author-X-Name-Last: Lo
Author-Name: Olena Staveley-O’Carroll
Author-X-Name-First: Olena
Author-X-Name-Last: Staveley-O’Carroll
Title: Nonlinearities in the real exchange rates: new evidence from developed and developing countries
Abstract: 
 This paper investigates nonlinearities in the dynamics of real exchange rates. We use Monte Carlo simulations to establish the size properties of the Teräsvirta-Anderson test, when the dynamics of the real exchange rate is influenced by an exogenous process. In addition, we show that a modified nonlinearity test, which includes additional right-hand-side variables, performs much better than the original in both Monte Carlo exercises and in the actual data on 1431 bilateral real exchange rate series. Finally, we investigate the dynamics of the real exchange rate for both developed and developing countries using the modified test for the recent floating period. In general, the results find a greater incidence of nonlinear dynamics for developing country real exchange rates.
Journal: Applied Economics
Pages: 2731-2743
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558354
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558354
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2731-2743




Template-Type: ReDIF-Article 1.0
Author-Name: Alejandra Elizondo
Author-X-Name-First: Alejandra
Author-X-Name-Last: Elizondo
Author-Name: Roy Boyd
Author-X-Name-First: Roy
Author-X-Name-Last: Boyd
Title: CGE assumptions under scrutiny: uncertainty in the ethanol promotion policy in Mexico
Abstract: 
 Based on a CGE exercise of a subsidy to initiate ethanol production in Mexico, we use Monte Carlo simulations for consumer demand elasticities and ethanol cost estimates. The analysis provides three conclusions: when markets vary smoothly and predictably, Monte Carlo methods can then help to gauge the actual probability that a given program will achieve a desired outcome. Second, secondary markets may display little or no sensitivity to these parameter variations. Finally, a ‘razor’s edge’ outcome with no positive benefits if a critical parameter falls below some critical value, reveals that an economic policy may not be conducive to ‘fine tuning’ by marginal adjustments.
Journal: Applied Economics
Pages: 2744-2753
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558355
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558355
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2744-2753




Template-Type: ReDIF-Article 1.0
Author-Name: Weijian Du
Author-X-Name-First: Weijian
Author-X-Name-Last: Du
Author-Name: Mengjie Li
Author-X-Name-First: Mengjie
Author-X-Name-Last: Li
Title: Government support and innovation for new energy firms in China
Abstract: 
 Government support plays an important role in the Chinese economy. New energy industries, which involve innovation-driven sources and environmental protection, are also supported by the government. This paper aims to study the effects of supply-side traditional government support on firms’ innovation and development. We propose a theoretical mechanism and study the innovation reaction of firms to government support in different situations. We further use propensity score matching to verify the results in the theoretical model and conduct a robustness analysis. Our main conclusions include the following. (1) In normal years, government support can promote only the innovation output of firms that have innovated; however, support cannot promote the innovation probability of firms that have not innovated. Government support can only enhance the intensive margin of innovation and cannot enhance the extensive margin of innovation with less competition. (2) In the situation of a bad economic environment and intense competition, firms’ innovation probability rises as government support increases. Therefore, the government should provide more R&D special subsidies and implement strict financial supervision to make support policies effective, especially in normal years.
Journal: Applied Economics
Pages: 2754-2763
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558356
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558356
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2754-2763




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Kunsteller
Author-X-Name-First: Sebastian
Author-X-Name-Last: Kunsteller
Author-Name: Janis Müller
Author-X-Name-First: Janis
Author-X-Name-Last: Müller
Author-Name: Peter N. Posch
Author-X-Name-First: Peter N.
Author-X-Name-Last: Posch
Title: Do illiquid stocks jump more frequently?
Abstract: 
 We study the influence of stock liquidity on the stock price jump frequency using intraday data of 175 US stocks during 2007–11. Grouping these stocks according to their average liquidity we find less liquid stocks to jump more often than liquid stocks. Depending on the liquidity measure the least liquid stocks exhibit on average between 10% and 34% more jumps than the most liquid stocks. Our results are robust to different definitions of liquidity and jump measures as well prevail under different time frequencies.
Journal: Applied Economics
Pages: 2764-2769
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558357
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558357
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2764-2769




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Title: Predicting bid prices by using machine learning methods
Abstract: 
 It is well-known that empirical analysis suffers from multicollinearity and high dimensionality. In particular, this is much more severe in an empirical study of itemized bids in highway procurement auctions. To overcome this obstacle, this article employs the regularized linear regression for the estimation of a more precise interval for project winning bids. The approach is put to the test using empirical data of highway procurement auctions in Vermont. In our empirical analysis, we first choose a set of crucial tasks that determine a bidder&#x2019;s bid amounts by using the random forest variable selection method. Given the selected tasks, project bid forecasting is conducted. We compare our proposed methodology with the least square linear model based on the bias and the standard root mean square error of the bid estimates. There is evidence supporting that the suggested approach provides superior forecasts for an interval of winning bids over the competing model. As far as we know, this article is the first attempt to provide reference bids of highway construction contracts.
Journal: Applied Economics
Pages: 2011-2018
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1537477
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1537477
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2011-2018




Template-Type: ReDIF-Article 1.0
Author-Name: Yicheol Han
Author-X-Name-First: Yicheol
Author-X-Name-Last: Han
Author-Name: Stephan J. Goetz
Author-X-Name-First: Stephan J.
Author-X-Name-Last: Goetz
Title: Predicting US county economic resilience from industry input-output accounts
Abstract: 
 Resilience is defined as a system&#x2019;s ability to initially resist and then recover from a shock. Here we apply this concept to examine the performance of U.S. counties during the Great Recession. The response of local economies to manmade and natural shocks is hypothesized to depend on the centrality of local industries within the economy, or how well connected they are to the other industries. We first calculate a centrality value for each industry using the national Input-Output accounts. We then &#x2018;step down&#x2019; these values to the county level using industry employment data. We then test empirically whether local economies containing more centralized industries were more resilient, using a resilience measure that compares the local employment rebound and decline during the Great Recession. Our results suggest that measures of economic centrality adopted from the study of complex networks provide new insights when applied to the fields of regional science and spatial analysis, and economic growth more generally.
Journal: Applied Economics
Pages: 2019-2028
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1539806
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1539806
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2019-2028




Template-Type: ReDIF-Article 1.0
Author-Name: Sumiko Takaoka
Author-X-Name-First: Sumiko
Author-X-Name-Last: Takaoka
Title: Is there a safety premium in the design of corporate bond contracts?
Abstract: 
 This study examines empirically whether there is a safety premium in the design of bond contracts by highlighting a safety attribute of general mortgage bonds in Japan, which can give especially strong protection to bondholders, who would have priority in the event of legal liquidation. The effects of a safety attribute were not prominent at first in the difference-in-differences analysis. However, the methods for analysing selectivity bias allow us to provide a safety premium in the design of bond contracts, such as lower spread, lower commission, and larger issue size. The resulting bias would depend on the reputation of the bookrunner. This study uncovers the underlying link for the connection between a safety attribute and the observed and unobserved issuer and bookrunner characteristics, to indicate that a safety premium is related to various terms of bond contracts, including the bookrunner-issuer match.
Journal: Applied Economics
Pages: 2029-2042
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1539807
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1539807
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2029-2042




Template-Type: ReDIF-Article 1.0
Author-Name: T. Danswasvong
Author-X-Name-First: T.
Author-X-Name-Last: Danswasvong
Author-Name: S. Suchintabandid
Author-X-Name-First: S.
Author-X-Name-Last: Suchintabandid
Title: Heterogeneity effects on the management of retirement fund
Abstract: 
 This article studies the importance of plan members&#x2019; heterogeneity to the management of defined benefit (DB) pension fund. We propose a new multi-member model of DB pension fund that allows for heterogeneity in plan members&#x2019; retirement ages, salary growths and other characteristics. We first solve analytically for optimal management strategy and show that the sponsor&#x2019;s supplementary contribution and the fund&#x2019;s allocation in risky assets are determined by the cross-product between the fund&#x2019;s expected retirement liabilities and some heterogeneity-adjusted discount factors. We then demonstrate that the presence of heterogeneity can have a significant influence on the optimal management strategy and that a management decision made while ignoring heterogeneity will be suboptimal. The knowledge of desirable and undesirable effects of heterogeneity that we uncover in this article also provides implications to the grouping of fund members. Introducing a presence of young member whose salary is positively correlated with the risky asset and avoid stacking members with negative correlations will all help the management.
Journal: Applied Economics
Pages: 2043-2060
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540844
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540844
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2043-2060




Template-Type: ReDIF-Article 1.0
Author-Name: Esteban Petruzzello
Author-X-Name-First: Esteban
Author-X-Name-Last: Petruzzello
Title: Testing for forward-looking behaviour: evidence from the enactment of smoking restrictions
Abstract: 
 This paper develops a new test for forward-looking behaviour based on the establishment of public smoking restrictions. Given that the announcement of these restrictions effectively increases the future cost of smoking, we should expect forward-looking smokers to curb their consumption before the restriction is effective due to complementarity between present and future consumption. I perform the estimation using detailed, high-frequency household-level purchase data. The results provide evidence against the forward-looking behaviour of smokers. Households do not reduce their cigarette purchases before announced public smoking restrictions are established; they only do so once the restriction is in effect.
Journal: Applied Economics
Pages: 2061-2069
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540845
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540845
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2061-2069




Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Chu Shu
Author-X-Name-First: Hui-Chu
Author-X-Name-Last: Shu
Author-Name: Jung-Hsien Chang
Author-X-Name-First: Jung-Hsien
Author-X-Name-Last: Chang
Title: Spillovers of volatility index: evidence from U.S., European, and Asian stock markets
Abstract: 
 We investigated the cross-market relations of volatility indexes with U.S. and non-U.S. stock market returns. We found that the pervasive VIX influence at both U.S. and non-U.S. stock markets. The VSTOXX and VKOSPI capture the major shocks to the global economy and show movements similar to the VIX. The empirical findings indicate that volatility index changes are important in explaining stock returns. We also examined spillover effects across volatility indexes. The VIX is a main transmitter, and the VKOSPI the main receiver, of these spillovers. The results point to a leading role for the VIX in the international market.
Journal: Applied Economics
Pages: 2070-2083
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540846
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540846
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2070-2083




Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: A model selection approach for multiple indicators multiple causes model
Abstract: 
 This study proposes a model selection approach for determining the inclusion or exclusion of a latent variable when two exogenous and two endogenous variables are provided. The models compared are the multivariate regression model without latent variables (MR model) and the multiple indicators multiple causes model (MIMIC model). The inclusion of a latent variable in the MR model yields the MIMIC model. In the proposed approach, an information criterion is used to select the best model of the two. The efficacy of the proposed approach is examined through two types of simulation studies and empirical analyses of the shadow economy and the fiscal illusion.
Journal: Applied Economics
Pages: 2084-2090
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540847
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540847
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2084-2090




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Ismihan
Author-X-Name-First: Mustafa
Author-X-Name-Last: Ismihan
Author-Name: Burcu Dinçergök
Author-X-Name-First: Burcu
Author-X-Name-Last: Dinçergök
Author-Name: Seyit Mümin Cilasun
Author-X-Name-First: Seyit Mümin
Author-X-Name-Last: Cilasun
Title: Revisiting the finance–growth nexus: the Turkish case, 1980–2010
Abstract: 
 In Turkey, the empirical results on the link between financial development and economic growth are mixed. The existing studies do not take into account the fact that Turkey has experienced endemic political and economic instabilities over extended periods. This study aims to analyse the role of macroeconomic instability and public borrowing on the finance–growth nexus in Turkey by using time series econometric techniques over the 1980–2010 period. In doing so, we attempt to extend the existing literature by taking into account the role of macroeconomic instability as well as public borrowing. Our results reveal that there are additional – albeit indirect – channels between finance and growth via the effects of macro instability and public borrowing on financial development and economic growth. After taking into account the effects of overall instability and public borrowing, we found that growth–financial development relationship is bidirectional and permanent. In other words, in Turkish case, economic growth and financial development are jointly determined. Thus, our results shed some light on the ambiguity of the evidence on the link between financial development and economic growth for Turkey.
Journal: Applied Economics
Pages: 1737-1750
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226487
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226487
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1737-1750




Template-Type: ReDIF-Article 1.0
Author-Name: Xiuhua Wang
Author-X-Name-First: Xiuhua
Author-X-Name-Last: Wang
Author-Name: Jian Guan
Author-X-Name-First: Jian
Author-X-Name-Last: Guan
Title: Financial inclusion: measurement, spatial effects and influencing factors
Abstract: 
 Using the index of financial inclusion and the World Bank Global Findex database, this study measures the level of financial inclusion across countries. The results reveal a geographical spatial aggregation distribution in which developed European and North American countries enjoy higher levels of financial inclusion than the less developed countries of Africa and most of Asia. Accordingly, our spatial analysis proves our hypothesis and reveals dependence and aggregation effects among countries. Then, we employ spatial econometric research to identify those factors significantly associated with financial inclusion. The results show that an individual’s income, education and use of communications equipment are important factors that explain the level of financial inclusion, while financial depth and banking health status are the main determinants. Building an inclusive financial system is an important means for most countries to achieve the Millennium Development Goals.
Journal: Applied Economics
Pages: 1751-1762
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226488
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226488
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1751-1762




Template-Type: ReDIF-Article 1.0
Author-Name: Louis de Grange
Author-X-Name-First: Louis
Author-X-Name-Last: de Grange
Author-Name: Rodrigo Troncoso
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Troncoso
Author-Name: Nicolás Odeh
Author-X-Name-First: Nicolás
Author-X-Name-Last: Odeh
Author-Name: Felipe González
Author-X-Name-First: Felipe
Author-X-Name-Last: González
Title: Estimating the impact of incidents on urban controlled-access highways: an empirical analysis
Abstract: 
 An empirical analysis is developed that quantifies the impact of different types of traffic incidents on the speed and maximum flow averages of vehicles on a controlled-access highway. The incident types considered include damage to highway infrastructure, vehicle rollover, crashes (into stationary objects), collisions (with moving vehicles), rain, fog, vehicle breakdowns, pedestrians on roadway, etc. Using real-world data from Chile’s most heavily used urban motorway/freeway, estimates of incident impacts on speed are generated using a multiple linear regression model incorporating instrumental variables to correct for endogeneity. Flow results are then generated using the fundamental traffic equation relating speed, flow and density. A ranking of the impacts on highway traffic of the different incident types based on incident frequency as well as impact size demonstrates that for the real case studied, the incidents with the greatest cumulative effect are (in order of magnitude) vehicle breakdown, collisions and rain.
Journal: Applied Economics
Pages: 1763-1773
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226489
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226489
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1763-1773




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Pierre Allegret
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Allegret
Author-Name: Cécile Couharde
Author-X-Name-First: Cécile
Author-X-Name-Last: Couharde
Author-Name: Valérie Mignon
Author-X-Name-First: Valérie
Author-X-Name-Last: Mignon
Author-Name: Tovonony Razafindrabe
Author-X-Name-First: Tovonony
Author-X-Name-Last: Razafindrabe
Title: Oil currencies in the face of oil shocks: what can be learned from time-varying specifications?
Abstract: 
 While the oil currency property is clearly established from a theoretical viewpoint, its existence is less clear-cut in the empirical literature. We investigate the reasons for this apparent puzzle by studying the time-varying nature of the relationship between real effective exchange rates of five oil exporters and the real price of oil in the aftermath of the oil price shocks of the last two decades. Accordingly, we rely on a time-varying parameter VAR specification, which allows the responses of real exchange rates to different oil price shocks to evolve over time. We find that the reason of the mixed results obtained in the empirical literature is that oil currencies follow different hybrid models in the sense that oil countries’ real exchange rates may be driven by one or several sources of oil price shocks that furthermore can vary over time. In addition to structural changes affecting oil countries, structural changes arising from the oil market itself through the various, time-varying sources of oil price shocks are found to be crucial.
Journal: Applied Economics
Pages: 1774-1793
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226490
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226490
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1774-1793




Template-Type: ReDIF-Article 1.0
Author-Name: Claudiu Tiberiu Albulescu
Author-X-Name-First: Claudiu Tiberiu
Author-X-Name-Last: Albulescu
Author-Name: Christian Aubin
Author-X-Name-First: Christian
Author-X-Name-Last: Aubin
Author-Name: Daniel Goyeau
Author-X-Name-First: Daniel
Author-X-Name-Last: Goyeau
Title: Stock prices, inflation and inflation uncertainty in the U.S.: testing the long-run relationship considering Dow Jones sector indexes
Abstract: 
 We test for the long-run relationship between stock prices, inflation and its uncertainty for different U.S. sector stock indexes, over the period 2002M7–2015M10. For this purpose we use a cointegration analysis with one structural break to capture the crisis effect, and we assess the inflation uncertainty based on a time-varying unobserved component model. In line with recent empirical studies we discover that in the long run, the inflation and its uncertainty negatively impact the stock prices, opposed to the well-known Fisher effect. In addition we show that for several sector stock indexes the negative effect of inflation and its uncertainty vanishes after the crisis outburst. However, in the short run the results provide evidence in favour of a negative impact of uncertainty, while the inflation has no significant influence on stock prices, except for the consumption indexes. The consideration of business cycle effects confirms our findings, which proves that the results are robust, both for long- and short-run relationships.
Journal: Applied Economics
Pages: 1794-1807
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226491
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226491
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1794-1807




Template-Type: ReDIF-Article 1.0
Author-Name: M. P. Cameron
Author-X-Name-First: M. P.
Author-X-Name-Last: Cameron
Author-Name: S. Siameja
Author-X-Name-First: S.
Author-X-Name-Last: Siameja
Title: An experimental evaluation of a proactive pastoral care initiative within an introductory university course
Abstract: 
 Improving student retention and academic performance is a key objective for higher education institutions, and finding effective interventions for assisting with at-risk students is therefore important. In this article, we evaluate a proactive pastoral care intervention that was trialled in an introductory economics course in New Zealand. We first identified students at high risk of failure, and then randomized these students into two treatment groups and a control group. The first treatment group received an email with information about academic support, while the second treatment group received the email as well as a personal telephone call to follow-up. In evaluating the impact of the intervention trial, we found that the first intervention did not significantly improve student outcomes, but the second intervention improved outcomes in one of the two semesters evaluated. Overall, the initiative was a qualified success. It is both simple and cost-effective and should be considered for wider implementation and further evaluation.
Journal: Applied Economics
Pages: 1808-1820
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226492
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226492
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1808-1820




Template-Type: ReDIF-Article 1.0
Author-Name: Dooyeon Cho
Author-X-Name-First: Dooyeon
Author-X-Name-Last: Cho
Author-Name: Sungju Chun
Author-X-Name-First: Sungju
Author-X-Name-Last: Chun
Title: Trend shifts in the forward premium and the predictability of excess returns in currency markets
Abstract: 
 This article provides evidence that the forward premium involves structural changes in the trend function, which might affect the predictability of currency excess returns to be dependent on the choice of the sample period. Accounting for the shifts in trend for the forward premium reveals that currency excess returns for the Canadian dollar, Swiss franc, euro and pound against the US dollar are significantly predictable irrespective of the sample period selected. Another advantage of detrending the forward premium is that we can obtain more consistent slope coefficient estimates in the predictive regression, which enables us to make more consistent, dependable inferences about the excess return predictability.
Journal: Applied Economics
Pages: 1821-1832
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226493
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226493
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1821-1832




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund
Author-X-Name-First: Christian
Author-X-Name-Last: Grund
Author-Name: Maike Rubin
Author-X-Name-First: Maike
Author-X-Name-Last: Rubin
Title: Social comparisons of wage increases and job satisfaction
Abstract: 
 We combine status quo and social comparison considerations and investigate whether relative wage increases in the sense of differences between individual wage increases and wage increases of comparable employees are related to managers’ job satisfaction. Using a panel data set of managers in the German chemical industry, we indeed find first evidence. The relation between relative wage increases and job satisfaction is relevant for managers with lower absolute wage levels in particular.
Journal: Applied Economics
Pages: 1345-1350
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217311
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217311
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1345-1350




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad F. Bhuiyan
Author-X-Name-First: Muhammad F.
Author-X-Name-Last: Bhuiyan
Author-Name: Radek S. Szulga
Author-X-Name-First: Radek S.
Author-X-Name-Last: Szulga
Title: Extreme bounds of subjective well-being: economic development and micro determinants of life satisfaction
Abstract: 
 This article presents a global sensitivity analysis of micro determinants of life satisfaction (LS), a subjective well-being (SWB) measure of quality of life, as it relates to economic development. We test 53 micro variables using extreme bound analysis on a pooled cross-section data from the World Value Survey representing 98 countries between 1989 and 2014. Several standard variables frequently included in SWB regressions are controlled for. The test variables are broadly categorized as demographic, personal–economic, individual traits and values, social attitudes and collectivism, social relationships and perceptions of control. We find subjective health status, household income rank, family savings, religiosity, most perceptions of control and several social attitudes and collectivism measures to be universal LS determinants. Generally, the determinants of LS vary by a country’s level of economic development. In particular, we provide suggestive evidence that as countries develop, certain needs are satisfied and stop being important contributors to LS while others take their place.
Journal: Applied Economics
Pages: 1351-1378
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218426
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218426
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1351-1378




Template-Type: ReDIF-Article 1.0
Author-Name: Jürgen Bitzer
Author-X-Name-First: Jürgen
Author-X-Name-Last: Bitzer
Author-Name: Ingo Geishecker
Author-X-Name-First: Ingo
Author-X-Name-Last: Geishecker
Author-Name: Philipp J. H. Schröder
Author-X-Name-First: Philipp J. H.
Author-X-Name-Last: Schröder
Title: Is there a wage premium for volunteer OSS engagement? – signalling, learning and noise
Abstract: 
 Volunteer-based open-source production has become a significant new model for the organization of software development. Economics often pictures this phenomenon as a case of signalling: individuals engage in the volunteer programming of open-source software (OSS) as a labour-market signal resulting in a wage premium. Yet, this explanation could so far not be empirically tested. This article fills this gap by estimating an upper-bound composite wage premium of voluntary OSS contributions and by separating the potential signalling effect of OSS engagement from other effects. Although some 70% of OSS contributors believe that OSS involvement benefits their careers, we find no actual labour-market premium for OSS engagement. The presence of other motives, such as fun of play or altruism, renders OSS contributions too noisy to function as a signal.
Journal: Applied Economics
Pages: 1379-1394
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218427
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218427
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1379-1394




Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Berg
Author-X-Name-First: Nathan
Author-X-Name-Last: Berg
Author-Name: Todd Gabel
Author-X-Name-First: Todd
Author-X-Name-Last: Gabel
Title: Who was affected by new welfare reform strategies? Microdata estimates from Canada
Abstract: 
 A heterogeneous mix of aggressive welfare reforms took effect in different provinces and years starting in the 1990s. Welfare participation rates subsequently declined. Previous investigations of these declines focused on cuts in benefits and stricter eligibility requirements. This article focuses instead on work requirements, diversion, earning exemptions and time limits – referred to jointly as new welfare reform strategies – while controlling for benefit levels, eligibility requirements, province-specific labour market conditions and GDP growth, as well as individual-level socio-economic information. Province-year-specific variation in new reform strategies produce estimates implying that their presence is associated with a large decline in welfare participation of 1.3 percentage points (14% relative to the unconditional mean participation rate of 9.2%). Our coding scheme generates new measures of policy variation that distinguish reductions in benefit levels and tighter eligibility restrictions from new welfare reform strategies, helping identify how different subpopulations responded to different kinds of welfare reforms. Estimates from 46 subpopulations demonstrate that immigrants, native Canadians, single parents and disabled people were substantially more likely to be affected by aggressive new attempts to limit welfare participation than other Canadians receiving social assistance.
Journal: Applied Economics
Pages: 1395-1413
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218428
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218428
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1395-1413




Template-Type: ReDIF-Article 1.0
Author-Name: Michael S. Pagano
Author-X-Name-First: Michael S.
Author-X-Name-Last: Pagano
Title: How have global financial institutions responded to the challenges of the post-crisis era?
Abstract: 
 The study examines the largely unexplored effect of changes in the competitive landscape for large, global financial institutions on their ability to take risks, as well as deploy capital and labour in an efficient manner based on a novel measure of inefficiency. The analysis shows during 2001–2013 that inefficiency peaked during the 2008 crisis period and has fallen back to levels close to pre-crisis periods. The model also performs well in out-of-sample forecasts of the financial firms’ future market values. These results suggest that large financial firms have been adjusting to the ‘new normal’ of the post-crisis period and thus are able to use capital and labour more efficiently within the constraints of current market conditions. In addition, a non-linear pattern between inefficiency and a firm’s asset size suggests that there might be an optimal scale for such firms in the $450–650 billion range.
Journal: Applied Economics
Pages: 1414-1425
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218429
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218429
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1414-1425




Template-Type: ReDIF-Article 1.0
Author-Name: Bethany Cooper
Author-X-Name-First: Bethany
Author-X-Name-Last: Cooper
Title: What drives compliance? An application of the theory of planned behaviour to urban water restrictions using structural equation modelling
Abstract: 
 This article presents analysis of households’ intentions to comply with government constraints on the use of urban water, or so-called water restrictions. The data are drawn from Australian cities and was collected during a severe drought. Structural equation modelling is employed to operationalize constructs taken from the theory of planned behaviour and to answer important policy questions related to compliance. The modelled data support the view that attitudes, social norms and perceived behavioural control (PBC) have a positive and significant influence on intentions to comply. PBC has the strongest influence on intentions, suggesting policy directed at assisting households to meet regulatory criteria might be at least as effective as advertising expenditures aimed at shaping attitudes and norms. Importantly, intentions to comply are also shown to have a positive and significant influence on reported compliance behaviour.
Journal: Applied Economics
Pages: 1426-1439
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218430
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218430
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1426-1439




Template-Type: ReDIF-Article 1.0
Author-Name: Augusto Cerqua
Author-X-Name-First: Augusto
Author-X-Name-Last: Cerqua
Author-Name: Giorgio Di Pietro
Author-X-Name-First: Giorgio
Author-X-Name-Last: Di Pietro
Title: Natural disasters and university enrolment: evidence from L’Aquila earthquake
Abstract: 
 Although there are several studies looking at the effect of natural disasters on economic growth, less attention has been dedicated to their impact on educational outcomes, especially in more developed countries. We use the synthetic control method to examine how the L’Aquila earthquake affected subsequent enrolment at the local university. This issue has wide economic implications as the University of L’Aquila made a large contribution to the local economy before the earthquake. Our results indicate that the earthquake had no statistically significant effect on first-year enrolment at the University of L’Aquila in the three academic years after the disaster. This natural disaster, however, caused a compositional change in the first-year student population, with a substantial increase in the number of students aged 21 or above. This is likely to have been driven by post-disaster measures adopted in order to mitigate the expected negative effects on enrolment triggered by the earthquake.
Journal: Applied Economics
Pages: 1440-1457
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218431
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218431
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1440-1457




Template-Type: ReDIF-Article 1.0
Author-Name: Ákos Dombi
Author-X-Name-First: Ákos
Author-X-Name-Last: Dombi
Author-Name: István Dedák
Author-X-Name-First: István
Author-X-Name-Last: Dedák
Title: Public debt and economic growth: what do neoclassical growth models teach us?
Abstract: 
 This paper aims to quantify the crowding-out effect of public debt and the related loss in long-run output in neoclassical growth models. To accomplish this task, we incorporate the government sector into the Ramsey–Cass–Koopmans (RCK) model, the Blanchard model and the Solow model, which differ only in their assumptions concerning the consumption behaviour of households. We also introduce a general framework that is capable of gauging the burden of public debt in a neoclassical world in the case of any type of consumption behaviour. Our results are threefold. First, contrary to the RCK model, public debt reduces long-run output in the Blanchard model and the Solow model, although to a different extent: the crowding-out effect is marginal in the former, whereas it can be very large in the latter. Second, the burden of public debt is country-specific depending crucially on the saving rate and the population growth rate. Finally, in developed countries the upper limit of the output loss related to public debt is moderate at best even if distortionary taxes are taken into account.
Journal: Applied Economics
Pages: 3104-3121
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1508869
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1508869
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3104-3121




Template-Type: ReDIF-Article 1.0
Author-Name: Zied Ftiti
Author-X-Name-First: Zied
Author-X-Name-Last: Ftiti
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Wael Louhichi
Author-X-Name-First: Wael
Author-X-Name-Last: Louhichi
Author-Name: Mohamed Arbi Madani
Author-X-Name-First: Mohamed Arbi
Author-X-Name-Last: Madani
Title: On the relationship between energy returns and trading volume: a multifractal analysis
Abstract: 
 Forecasting and modelling commodities price movements and the activity of energy markets are of real interest to investors and policymakers, especially during turbulent times. This study investigates the volume–returns relationship for two major energy markets (oil and gas) during the recent global financial crisis. Unlike previous studies, we examine this relationship by applying an original fractal approach to intraday data, which has the advantage of accounting for further non-normality, nonstationarity, and fat-tailedness properties. Our study provides two interesting findings. First, we find a significant multifractal relationship between returns and volume in both markets and across all timescales, suggesting nonlinearity in the cross-correlation between returns and volume and rejecting the efficiency assumption. Second, the measure of multifractality in this relationship shows that the magnitude of the fluctuations during bearish and bullish trends affects the volume–return relationship differently, and that the oil market exhibits higher volatility than does the gas market.
Journal: Applied Economics
Pages: 3122-3136
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564122
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564122
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3122-3136




Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio La Rocca
Author-X-Name-First: Maurizio
Author-X-Name-Last: La Rocca
Author-Name: Tiziana La Rocca
Author-X-Name-First: Tiziana
Author-X-Name-Last: La Rocca
Author-Name: Raffaele Staglianò
Author-X-Name-First: Raffaele
Author-X-Name-Last: Staglianò
Author-Name: Pino Vecellio
Author-X-Name-First: Pino
Author-X-Name-Last: Vecellio
Author-Name: Fabiola Montalto
Author-X-Name-First: Fabiola
Author-X-Name-Last: Montalto
Title: Gender diversity, cash holdings and the role of the institutional environment: empirical evidence in Europe
Abstract: 
 While substantial evidence is emerging internationally on higher risk aversion among women than among men, there is less evidence on women’s business choices. We explore some of the reasons for the relationship between gender diversity and cash holdings. Specifically, this paper focuses on the choices involving the stock of cash held by firms in which women have executive roles and can consequently exert a crucial influence on the firms themselves. We estimate our proposed empirical models using a dataset of 12,466 observations from 18 European countries. We find a positive relationship between the presence of women with executive roles in the firm and cash holdings. Women tend to make more conservative choices probably because they are more risk averse than men are. This propensity has a relevant impact on the financial choices of firms when women play a leading role. Notably, the study demonstrates that the institutional environment and industry differences moderate our baseline relationship.
Journal: Applied Economics
Pages: 3137-3152
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566687
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566687
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3137-3152




Template-Type: ReDIF-Article 1.0
Author-Name: S. Endres
Author-X-Name-First: S.
Author-X-Name-Last: Endres
Author-Name: J. Stübinger
Author-X-Name-First: J.
Author-X-Name-Last: Stübinger
Title: Optimal trading strategies for Lévy-driven Ornstein–Uhlenbeck processes
Abstract: 
 This study derives an optimal pairs trading strategy based on a Lévy-driven Ornstein–Uhlenbeck process and applies it to high-frequency data of the S&P 500 constituents from 1998 to 2015. Our model provides optimal entry and exit signals by maximizing the expected return expressed in terms of the first-passage time of the spread process. An explicit representation of the strategy’s objective function allows for direct optimization without Monte Carlo methods. Categorizing the data sample into 10 economic sectors, we depict both the performance of each sector and the efficiency of the strategy in general. Results from empirical back-testing show strong support for the profitability of the model with returns after transaction costs ranging from 31.90% p.a. for the sector ‘Consumer Staples’ to 278.61% p.a. for the sector ‘Financials’. We find that the remarkable returns across all economic sectors are strongly driven by model parameters and sector size. Jump intensity decreases over time with strong outliers in times of high market turmoil. The value-add of our Lévy-based model is demonstrated by benchmarking it with quantitative strategies based on Brownian motion-driven processes.
Journal: Applied Economics
Pages: 3153-3169
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566688
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566688
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3153-3169




Template-Type: ReDIF-Article 1.0
Author-Name: Lan Thanh Nguyen
Author-X-Name-First: Lan Thanh
Author-X-Name-Last: Nguyen
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Author-Name: Parmendra Sharma
Author-X-Name-First: Parmendra
Author-X-Name-Last: Sharma
Title: SME credit constraints in Asia’s rising economic star: fresh empirical evidence from Vietnam
Abstract: 
 This study provides a fresh look at the SME sector’s economic backbone vis-à-vis credit constraint dichotomy in Vietnam—Asia’s rising economic star. The study uses data from the Survey of Manufacturing SMEs in Vietnam from 2005 to 2013 and adopts a two-step Heckman modelling strategy to single out firms with formal financing needs that are credit constrained. Results show that several characteristics—including firm size, investment, financial assets, leverage, equity, registration, gender of owner, age, and education—significantly affect the likelihood of either credit constraints or demand. The main results do not change even when the issue of endogeneity is dealt with. Particularly, we provide evidence that unobserved factors that increase the probability of debt demand also increase the probability of being constrained. Policy implications are discussed.
Journal: Applied Economics
Pages: 3170-3183
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1569196
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1569196
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3170-3183




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Pierre Gueyié
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Gueyié
Author-Name: Alaa Guidara
Author-X-Name-First: Alaa
Author-X-Name-Last: Guidara
Author-Name: Van Son Lai
Author-X-Name-First: Van Son
Author-X-Name-Last: Lai
Title: Banks’ non-traditional activities under regulatory changes: impact on risk, performance and capital adequacy
Abstract: 
 Using the big six Canadian chartered banks quarterly financial statements and daily stock market data from 1982 to 2018, we examine the impact of non-interest income on Canadian banks’ risk, performance and capital under the different major regulatory changes made to the Bank Act of Canada. Our results show that Canadian banks’ expansion into non-traditional activities had slightly decreased their risks and significantly improved their performance benefitting from income diversification. Moreover, while adhering to capital adequacy regulation, reshuffling banks’ portfolio towards non-traditional activities did not reduce Canadian banks’ capital ratio. In spite of the re-regulation towards universal banking against ring-fencing, this feature buttresses the effectiveness of capital adequacy regulation in Canada in linking banks capital allocation with their risk taking.
Journal: Applied Economics
Pages: 3184-3197
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1569197
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1569197
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3184-3197




Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Calcagnini
Author-X-Name-First: Giorgio
Author-X-Name-Last: Calcagnini
Author-Name: Francesco Perugini
Author-X-Name-First: Francesco
Author-X-Name-Last: Perugini
Title: Income distribution dynamics among Italian provinces. The role of Bank Foundations
Abstract: 
 This paper investigates the convergence process and the distribution dynamics of income among Italian NUTS-3 provinces between 2003 and 2011. Findings show the existence of multiple steady-state equilibria which is consistent with the well-documented persistence in income disparities among Italian provinces. The role of grant-making activities by Bank Foundations is assessed on a conditioning scheme. Results suggest that Bank Foundations can affect the shape of the distribution of income and, in the long run, reduce polarization with a tendency for income to collapse towards a unimodal distribution.
Journal: Applied Economics
Pages: 3198-3211
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1572866
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1572866
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3198-3211




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Sznajderska
Author-X-Name-First: Anna
Author-X-Name-Last: Sznajderska
Title: The role of China in the world economy: evidence from a global VAR model
Abstract: 
 Since the 1980s, China has experienced very high economic growth, and its share in global trade has increased rapidly. Currently, however, the Chinese economy is rebalancing, and its growth is slowing. This paper investigates the spillover effects on other countries of a negative demand shock and negative stock price shock in the Chinese economy. We apply a global vector autoregressive model, which enables us to model international linkages between countries. Our results show that a one per cent negative China GDP shock reduces global growth by 0.22% in the short run. We find that GDP shock affects emerging economies more strongly than advanced economies. We also show that a stock price shock affects only emerging economies and does not affect advanced economies.
Journal: Applied Economics
Pages: 1574-1587
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527464
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527464
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1574-1587




Template-Type: ReDIF-Article 1.0
Author-Name: Yasir Riaz
Author-X-Name-First: Yasir
Author-X-Name-Last: Riaz
Author-Name: Choudhry Tanveer Shehzad
Author-X-Name-First: Choudhry Tanveer
Author-X-Name-Last: Shehzad
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Title: Pro-cyclical effect of sovereign rating changes on stock returns: a fact or factoid?
Abstract: 
 This article examines the effect of changes in sovereign credit ratings and their outlook on the stock market returns of European countries at different phases of business cycle. Using standard four-factor model, it records a significant average marginal effect of credit rating announcements on stock market returns. Both magnitude and significance of the effect vary with business cycle and across announcement types. However, we do not find evidence of pro-cyclical effect of sovereign rating&#xA0;and outlook changes on stock returns. Our results show that stock markets react more negatively to rating downgrades in recovery phases and more positively to rating upgrades in contractionary period. Both results are statistically significant and robust to various sensitivity tests.
Journal: Applied Economics
Pages: 1588-1601
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527465
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527465
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1588-1601




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Guo
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Guo
Author-Name: Chad D. Meyerhoefer
Author-X-Name-First: Chad D.
Author-X-Name-Last: Meyerhoefer
Author-Name: Lizhong Peng
Author-X-Name-First: Lizhong
Author-X-Name-Last: Peng
Title: Participation in school-sponsored sports and academic spillovers: new evidence from the early childhood longitudinal survey
Abstract: 
 The link between participation in school-sponsored sports and academic performance has been studied extensively in the literature. Whilst previous studies tend to show positive academic spillovers, it remains unclear whether these positive associations are primarily driven by selection into sports. We investigate this issue using data on middle school children drawn from the Early Childhood Longitudinal Study, Kindergarten Class of 1998&#x2013;1999. Due to the lack of credible instrumental variables for sports participation, we establish bounds for the relationship between school sports and academics using a combination of the propensity score matching method and an approach that uses selection on observed factors as a guide to selection on unobserved factors. We find that the association between participation in school-sponsored sports and academic performance as measured by standardised test scores in reading, math and science ranges from null to negative. Overall, our results suggest that failure to account for selection may result in a misleading positive correlation between sports participation and academic performance.
Journal: Applied Economics
Pages: 1602-1620
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527466
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527466
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1602-1620




Template-Type: ReDIF-Article 1.0
Author-Name: Moh&#x2019;d Al-Azzam
Author-X-Name-First: Moh&#x2019;d
Author-X-Name-Last: Al-Azzam
Title: Financing microfinance institutions: subsidies or deposit mobilisation
Abstract: 
 According to conventional wisdom, dependence on subsidies cannot achieve the double bottom lines of microfinance institutions (MFIs): outreach and financial sustainability. The application of market-based principles to microfinancing, such as deposit mobilisation, has been long suggested as an answer to this problem. This paper documents the following findings regarding this issue. First, deposit mobilisation crowds out subsidies. Second, subsidies and deposit mobilisation reduce microcredit interest rates and allow MFIs to reach poorer borrowers. Third, subsidies and deposit mobilisation worsen financial sustainability. Fourth, subsidies reduce repayment rates, while deposit mobilisation has no impact on repayment. Overall, the results suggest that neither subsidies nor deposit mobilisation solve the traditional problem of trade-off between outreach and financial sustainability.
Journal: Applied Economics
Pages: 1621-1633
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527467
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527467
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1621-1633




Template-Type: ReDIF-Article 1.0
Author-Name: Hyeon-seung Huh
Author-X-Name-First: Hyeon-seung
Author-X-Name-Last: Huh
Author-Name: David Kim
Author-X-Name-First: David
Author-X-Name-Last: Kim
Title: Sources of fluctuations in hours worked for Canada, Germany, Japan and the U.S.: a sign restriction VAR approach
Abstract: 
 This study empirically examines the sources of fluctuations in hours worked in Canada, Germany, Japan and the U.S. It is particularly motivated by Gal&#xED;&#x2019;s (1999) VAR study, which demonstrates that a positive technology shock reduces hours worked, at least in the short run. However, in the present study, a technology shock is identified without recourse to Gal&#xED;&#x2019;s long-run restriction, which has been subject to active controversy. Furthermore, this study uncovers other important sources of fluctuations in hours worked to reflect the concern, raised by numerous studies, that technology shocks leave most variations in hours worked unexplained. Specifically, there are six shocks underlying our model, and they are identified using a set of sign restrictions. The empirical results confirm that in all four countries, a positive technology shock significantly reduces hours worked. This technology shock, along with labor supply and demand shocks, accounts for most of the short-term variations in hours worked. As the forecasting horizon increases, technology and demand shocks become less important, whereas labor supply shocks contribute to explaining the bulk of long-run variations in hours worked. Finally, the empirical relevance of Gal&#xED;&#x2019;s long-run identification restriction is tested and the results are related to those obtained using the sign restriction model.
Journal: Applied Economics
Pages: 1634-1646
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1528333
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528333
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1634-1646




Template-Type: ReDIF-Article 1.0
Author-Name: Eberhard Feess
Author-X-Name-First: Eberhard
Author-X-Name-Last: Feess
Author-Name: Helge M&#xFC;ller
Author-X-Name-First: Helge
Author-X-Name-Last: M&#xFC;ller
Author-Name: Ansgar Wohlschlegel
Author-X-Name-First: Ansgar
Author-X-Name-Last: Wohlschlegel
Title: Reimbursement schemes for hospitals: the impact of case and firm characteristics
Abstract: 
 We contribute to the debate on high-powered versus low-powered incentives in regulation by studying their heterogeneous impacts on different subpopulations, using data from the introduction of a high-powered prospective payment system (PPS) for hospital reimbursement in Germany. While no overall effect on quality or cost saving is found, our results support hypotheses drawn from an incentive and selection perspective: PPS reduces the length of stay of older relative to younger patients, of more severe relative to less severe cases, and in smaller relative to larger hospitals. Hospitals which adopted PPS earlier provide higher quality under PPS as proxied by the case-specific readmission rate. Our study also contributes to the health economic literature on hospital reimbursement as our data permits us to identify the treatment effect via different timings of adoption of PPS and to use a more accurate quality measure by following patients even when readmitted to other hospitals.
Journal: Applied Economics
Pages: 1647-1665
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1528334
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528334
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1647-1665




Template-Type: ReDIF-Article 1.0
Author-Name: Celil Aydin
Author-X-Name-First: Celil
Author-X-Name-Last: Aydin
Author-Name: &#xD6;mer Esen
Author-X-Name-First: &#xD6;mer
Author-X-Name-Last: Esen
Title: Does too much government spending depress the economic development of transition economies? Evidences from dynamic panel threshold analysis
Abstract: 
 This paper investigates the relationship between government size and economic growth and determines the optimal level of government spending to maximize economic growth. The paper applies a dynamic panel data analysis based upon a threshold model to test the threshold effect of government spending in 26 transition economies over the period spanning 1993&#x2013;2016. According to the analysis results, government expenditures have a threshold effect on economic growth, and there is a non-linear relationship depicted as an Armey curve in these transition economies. The findings indicate that a government size above the threshold government spending level adversely affects economic growth, while a government size below the threshold level has a positive effect. Furthermore, there is a statistically significant relationship between the two variables above and below that optimal level, even if we divide the sample into developed and developing countries. Our findings suggest that governments in transition economies should consider optimal government size at around the estimated threshold level to support sustainable economic growth.
Journal: Applied Economics
Pages: 1666-1678
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1528335
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528335
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1666-1678




Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: On the flow of funds accounts and inter-sectoral mobility of capital in India
Abstract: 
 This study uses the flow of funds accounts framework and undertakes an in-depth analysis of the inter-sectoral mobility of capital in India. Unlike previous studies, the FH model is estimated at the sectoral level using annual data for the period 1950–51 to 2012–13. The model estimated in one-regime setting with no structural break provides a weak and mixed support and that estimated in a sample-split setting with a single structural break provides no support for the presence of a long-run relationship between saving and investment for all the sectors. In contrast, the model estimated with multiple structural breaks provides dominant support for the presence of cointegration between saving and investment for all the sectors. The end-of-sample cointegration breakdown tests suggest the breakdowns of cointegration between saving and investment in all the sub-sample periods for the household and PCB sectors, but not for the public sector. The FOF accounts could be used to monitor the borrowing and lending operations of both financial and non-financial sectors and to identify any deformities in the system. The regulatory and supervisory policies need to be put in place promptly to resolve the identified deformities at their early stages, before they magnify and make the entire system dysfunctional.
Journal: Applied Economics
Pages: 4993-5011
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1584371
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584371
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:4993-5011




Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Sabine Gralka
Author-X-Name-First: Sabine
Author-X-Name-Last: Gralka
Title: The transient and persistent efficiency of Italian and German universities: a stochastic frontier analysis
Abstract: 
 Despite measures on the European level to increase the compatibility between the higher education sectors, the recent literature exposes variations in their efficiencies. To gain insights into these differences, we split the efficiency term according to the two management levels each university is confronted with. We separate short-term and long-term efficiency while controlling for unobserved institution-specific heterogeneity. We argue that the first term reflects the efficiency of the individual universities working within the country, while the second term echoes the influence of the overall country-specific higher education structure. The cross-country comparison displays whether efficiency differences between countries are related to the individual performance of their universities or their higher education structure. This allows more purposeful policy recommendations and expands the literature regarding the efficiency of universities in a fundamental way. Choosing Italy and Germany as two important illustrative examples, we show that the Italian higher education sector exhibits a higher overall efficiency value. With the individual universities working at the upper bound of efficiency in both countries, the remaining inefficiency and the gap between the countries are caused by persistent, structural inefficiency. Future measures should hence aim at the country-specific structure and not solely at the activities of single universities.
Journal: Applied Economics
Pages: 5012-5030
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1606409
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606409
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5012-5030




Template-Type: ReDIF-Article 1.0
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Cong Dong
Author-X-Name-First: Cong
Author-X-Name-Last: Dong
Title: Determinants of the global and regional CO2 emissions: What causes what and where?
Abstract: 
 Using the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model and an unbalanced panel dataset of 128 countries covering 1990–2014, this study aims to examine the key impact factors (KIFs) of the global and regional carbon dioxide (CO2) emissions and analyse the effectiveness of non-renewable and renewable energies. Given the potential cross-sectional dependence and slope heterogeneity, a series of econometric techniques allowing for cross-sectional dependence and slope heterogeneity is applied. The overall estimations imply that the KIFs at the global level are economic growth, followed by population size, non-renewable energy, and energy intensity in order of their impacts on CO2 emissions; conversely, the KIFs at the regional level vary across different regions and estimators. The results also suggest that renewable energy can lead to a decline in CO2 emissions at the global level. At the regional level, only for two regions (i.e., S. & Cent. America and Europe & Eurasia) renewable energy has a significant and negative effect on CO2 emissions, which may be affected by the share of renewable energy consumption in the primary energy mix. Finally, the results indicate varied causality relationships among the variables across regions.Abbreviations: AMG: Augmented mean group; BP: British Petroleum; BRICS: Brazil, Russia, India, China, and South Africa; CCEMG: Common correlated effects mean group; CD: Cross-section dependence; CIPS: Cross-sectionally augmented Im, Pesaran, and Shin; CO2: Carbon dioxide; PS: Population size; D-H: Dumitrescu-Hurlin; EI: Energy intensity; EU: European Union; EU-5: Germany, France, Italy, Spain, and the United Kingdom; Europe & Eurasia, Europe and Eurasia; GDP: Gross domestic product; IEA: International Energy Agency; KIF: Key impact factor; LM: Lagrange multiplier; Mtoe, Million tonnes oil equivalent; NRE: Non-renewable energy; RE: Renewable energy; S. & Cent. America, South and Central America; STIRPAT: Stochastic Impacts by Regression on Population, Affluence, and Technology; VECM: Vector error correction model; WDI: World Development Indicators
Journal: Applied Economics
Pages: 5031-5044
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1606410
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606410
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5031-5044




Template-Type: ReDIF-Article 1.0
Author-Name: Charlotte Fontan Sers
Author-X-Name-First: Charlotte
Author-X-Name-Last: Fontan Sers
Author-Name: Mazhar Mughal
Author-X-Name-First: Mazhar
Author-X-Name-Last: Mughal
Title: From Maputo to Malabo: public agricultural spending and food security in Africa
Abstract: 
 Africa is the world’s biggest battleground in the fight against hunger. African governments and the international development community have increasingly focused on finding ways and means to end hunger and ensure the right and access to food for the continent’s burgeoning population. Public spending on agriculture is one such measure. This study examines the role government spending on agriculture has played in enhancing the state of Africa’s food security over the past 25 years. We examine the existing relationship between the two, whether this relationship varies over time and space, and whether it depends on the amount spent. We explore various aspects of food security and check whether spending on research and development follows the same patterns as the overall public agricultural spending. We find some evidence of significant beneficial effects of public agricultural spending on food security but only for the countries which allocate greater proportions of their budgets to agriculture. Spending on agricultural research and development also shows a positive impact on Africa’s food security. There also exists some evidence supporting the temporal effects of public spending. We consider that the Maputo Declaration commitment to allocate at least 10% of public spending to agriculture pertinent.
Journal: Applied Economics
Pages: 5045-5062
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1606411
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606411
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5045-5062




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Mei Chiang
Author-X-Name-First: Shu-Mei
Author-X-Name-Last: Chiang
Author-Name: Hung-Chun Liu
Author-X-Name-First: Hung-Chun
Author-X-Name-Last: Liu
Author-Name: Chien-Ming Huang
Author-X-Name-First: Chien-Ming
Author-X-Name-Last: Huang
Author-Name: Hsin-Fu Chen
Author-X-Name-First: Hsin-Fu
Author-X-Name-Last: Chen
Title: Transmission effects of the U.S. and China monetary policy shocks on the world
Abstract: 
 This paper applies the Markov-switching model to analyse the transition probabilities and generalized method of moments (GMM) with Newey–West heteroscedasticity and autocorrelation consistent covariance estimators (HAC) to examine the continuity of monetary policies in different countries when the U.S. and China change their monetary policies. Our results indicate that the euro area’s monetary authority continues to increase/decrease their money supply to stimulate/depress the economy. In Japan, long-term economic recession motivated the Japanese government to maintain a loose money supply. The continuity of Korea’s monetary policy in expansionary states lasts up to 5.1 years. Besides, the outcomes show the implementation of U.S. quantitative easing (QE), overnight reverse repurchase agreement (RRP), and Chinese RRP policies have significant spillover effects on other nations. Particularly, the effects on the euro area are the largest. Furthermore, although the monetary policies of China and the euro area seem to move in opposite directions, they are interdependent.
Journal: Applied Economics
Pages: 5063-5075
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610707
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610707
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5063-5075




Template-Type: ReDIF-Article 1.0
Author-Name: Prasanna Surathkal
Author-X-Name-First: Prasanna
Author-X-Name-Last: Surathkal
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Title: Effects of packers’ inventory and market power on price adjustments in the U.S. beef industry
Abstract: 
 This study examines effects of packers’ inventory and market power on their price adjustment behaviour in the U.S. beef industry. Econometric model used in the study allows inventory and market power variables to influence the speed-of-adjustment parameters in a three-regime threshold error-correction model. Results show that the two variables have a statistically significant impact on packers’ price adjustment behaviour when price decreases but not when price increases. When price decreases, inventory tends to accelerate the adjustment process whereas packers’ market power slows down the adjustment process. The hypothesis of symmetric adjustment towards long-run equilibrium during increasing and decreasing phases of price is not rejected when the effects of inventory and market power are considered in explaining packers’ price adjustment behaviour. However, when these two effects are ignored in the model specification, the hypothesis of symmetry is rejected such that the speed of adjustment in the increasing phase of price is faster than the adjustment speed in the decreasing phase of price, i.e. ‘rockets and feathers’ effect.
Journal: Applied Economics
Pages: 5076-5089
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610708
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610708
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5076-5089




Template-Type: ReDIF-Article 1.0
Author-Name: Stefanie R. Ramirez
Author-X-Name-First: Stefanie R.
Author-X-Name-Last: Ramirez
Title: An examination of firm licensing behaviour after a payday-loan ban
Abstract: 
 In 2008, Ohio enacted the Short-Term Loan Law capping interest rates to 28% APR, effectively banning the industry. Previous analysis has shown that while the policy was effective in eliminating the payday lending industry, expansion occurred within the pawnbroker, small-loan and second-mortgage lending industries in effective policy periods. Extending this previous analysis, using branch-level licensing records from the Ohio Division of Financial Institutions, this study examines the firm’s decision to license at the branch-level both with a zip code and within a county. I predict the effects of the ban on the likelihood of entry in the small-loan and second-mortgage industries while also controlling for incumbent status as a payday lender. Results at the zip-code level show that the likelihood of entering the lending market as a small-loan lender increases by 35.4% and initiating a second-mortgage license increases by 6.3% after the signing the Short-Term Loan Law. At the county level, the probability of initiating a small-loan licenses increases by 15.3%, while the likelihood initiating a second-mortgage license increases by 6.3%. At the county level, branches previously operating as payday lenders are 1.1% more likely to re-license as small-loan lenders, though has no effect on licensing as a second-mortgage lender.
Journal: Applied Economics
Pages: 5090-5103
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610709
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610709
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5090-5103




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Cowling
Author-X-Name-First: Marc
Author-X-Name-Last: Cowling
Author-Name: Paul Robson
Author-X-Name-First: Paul
Author-X-Name-Last: Robson
Author-Name: Ian Stone
Author-X-Name-First: Ian
Author-X-Name-Last: Stone
Author-Name: Gordon Allinson
Author-X-Name-First: Gordon
Author-X-Name-Last: Allinson
Title: Loan guarantee schemes in the UK: the natural experiment of the enterprise finance guarantee and the 5 year rule
Abstract: 
 Loan guarantee schemes have existed since 1953 (in the US) and are widely used throughout the world to provide financial support to smaller firms by guaranteeing loans from commercial banks. The UK government has been an active supporter of loan guarantees since 1981, and has a long track record of modifying its scheme to reflect changing market conditions and the financing needs of its SME sector. Arguably the two most significant changes occurred in 2008 when the 5-Year Rule on eligibility was removed and in 2009 when the long-standing Small Firms Loan Guarantee Scheme was replaced by the Enterprise Finance Guarantee Scheme. We treat the removal of the 5-Year Rule as a natural policy experiment and empirically question whether, on economic grounds, this was a sensible policy. Our findings suggest that the 5-Year Rule was a better policy choice with regard to employment but had no impact on sales growth.
Journal: Applied Economics
Pages: 2210-2218
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392004
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392004
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2210-2218




Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Author-Name: Soon-Cheul Lee
Author-X-Name-First: Soon-Cheul
Author-X-Name-Last: Lee
Title: Does the role of observer countries in the regional trade agreement matter for intra-regional trade ?
Abstract: 
 This article investigates the effects of trade by observed economies on the intra-regional trade by South Asian Association for Regional Cooperation (SAARC) members using Poison pseudo maximum likelihood estimator (PPML) gravity models with panel data over the period 2008–2014. Eight SAARC members and eight observed countries, including the EU, are analysed in capturing the trade effect of observed economies on intra-regional trade in SAARC. This article provides an empirical measure of observers’ trade, FDI and Official development assistance (ODA) with SAARC if the exports and imports of observers to/from SAARC have positive or negative signs for intra-regional exports and imports. The results show that the exports and imports of observers to SAARC members have positive effects on bilateral exports among the members. The FDI of observers reduces the bilateral intra-imports in SAARC and ODA also has a negative effect on bilateral exports among the members. These results imply that the imports by SAARC members from observer countries increase intra-regional trade in the region. The FDI and ODA increase and decrease intra-regional trade in SAARC, respectively, implying that the policies for both FDI inflow from observers and efficient aid management are needed to increase regional welfare. The study also recommends that trade between SAARC members and its observers help to increase intra-regional trade in SAARC.
Journal: Applied Economics
Pages: 2219-2228
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392005
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392005
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2219-2228




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M Blau
Author-X-Name-First: Benjamin M
Author-X-Name-Last: Blau
Author-Name: Ryan J Whitby
Author-X-Name-First: Ryan J
Author-X-Name-Last: Whitby
Title: Skewness, short interest and the efficiency of stock prices
Abstract: 
 We examine the association between return skewness, short interest and the efficiency of stock prices. Since preferences for skewness have been shown to impact asset prices, we examine how skewness relates to market efficiency. We find that stocks with positive skewness are less efficient, which might be explained by investor preferences for positive skewness. Next, we document that short interest reduces both total skewness and idiosyncratic skewness. Finally, while research has shown that short selling can improve the efficiency of markets generally, we show that short interest’s ability to improve market efficiency is strongest in stocks with the highest skewness.
Journal: Applied Economics
Pages: 2229-2242
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394971
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394971
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2229-2242




Template-Type: ReDIF-Article 1.0
Author-Name: A. Senol Oztekin
Author-X-Name-First: A. Senol
Author-X-Name-Last: Oztekin
Author-Name: Krishnan Dandapani
Author-X-Name-First: Krishnan
Author-X-Name-Last: Dandapani
Author-Name: Suchismita Mishra
Author-X-Name-First: Suchismita
Author-X-Name-Last: Mishra
Author-Name: Sascha Strobl
Author-X-Name-First: Sascha
Author-X-Name-Last: Strobl
Title: Understanding spread in the electronic futures markets: financial crisis perspective
Abstract: 
 This article analyses bid–ask spreads in U.S. electronic futures markets around the recent financial crisis. We decompose the bid–ask spread into three components – order processing, inventory holding and adverse selection costs – and show that adverse selection costs increased the most during the crisis while order processing costs are the largest cost component. Volume significantly affects inventory holding and order processing costs, whereas volatility only influences inventory holding costs. The crisis period had a significant effect on these relations. This study extends the existing literature on liquidity in equity to futures markets.
Journal: Applied Economics
Pages: 2243-2250
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394972
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394972
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2243-2250




Template-Type: ReDIF-Article 1.0
Author-Name: Štefan Lyócsa
Author-X-Name-First: Štefan
Author-X-Name-Last: Lyócsa
Author-Name: Tomáš Výrost
Author-X-Name-First: Tomáš
Author-X-Name-Last: Výrost
Title: To bet or not to bet: a reality check for tennis betting market efficiency
Abstract: 
 We present evidence that the tennis betting market appears to be much more efficient than suggested by previous studies. More specifically, we study the market efficiency by studying the forecasting performance of a diversified set of 40 betting rules in two ways: by searching for the existence of a return differential between betting rules and by analysing the profitability of betting rules. Even though individual tests provide evidence that, within our universe of betting rules, positive returns can be achieved, when data-snooping bias is taken into account, the evidence diminishes. Subsequently, we also find very little evidence of return differentials between betting rules. These results cast doubts on previous research as they suggest that when the potential detrimental effects of data-dreading are taken into account, betting markets in general might not, ultimately, be so inefficient.
Journal: Applied Economics
Pages: 2251-2272
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394973
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394973
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2251-2272




Template-Type: ReDIF-Article 1.0
Author-Name: Marek A. Dąbrowski
Author-X-Name-First: Marek A.
Author-X-Name-Last: Dąbrowski
Author-Name: Monika Papież
Author-X-Name-First: Monika
Author-X-Name-Last: Papież
Author-Name: Sławomir Śmiech
Author-X-Name-First: Sławomir
Author-X-Name-Last: Śmiech
Title: Uncovering the link between a flexible exchange rate and fundamentals: the case of Central and Eastern European economies
Abstract: 
 This article examines the link between a nominal exchange rate and macrofundamentals in Central and Eastern European (CEE) countries. We use the model based on the monetary policy rule as a theoretical framework that explains the relations between the exchange rate and price level, risk premium, output gap, and expected inflation. It allows for endogeneity of the monetary policy – the issue ignored in the widely used monetary model. The sample covers the period January 2000 – December 2014, so the data are not plagued by high-inflation differentials characteristic for the early transition period and include countries with relatively flexible exchange rates. Our empirical strategy employs the panel error correction model that allows for cross-sectional dependence and a series of panel causality tests. The main finding is that the nominal exchange rates in CEE countries are not disconnected from macrofundamentals implied by the Taylor rule-based model. More specifically, we find that there is a strong cross-sectional dependence among CEE countries, exchange rates Granger-cause macrofundamentals and tend to revert to the long-run relation, and that the results are robust to the ‘extraordinary circumstances’ argument, i.e. do not rest on the dynamics during the global financial crisis.
Journal: Applied Economics
Pages: 2273-2296
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394974
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394974
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2273-2296




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements
Author-X-Name-First: Kenneth
Author-X-Name-Last: Clements
Author-Name: Yihui Lan
Author-X-Name-First: Yihui
Author-X-Name-Last: Lan
Author-Name: Jiawei Si
Author-X-Name-First: Jiawei
Author-X-Name-Last: Si
Title: Uncertainty in currency mispricing
Abstract: 
 Declaring a currency to be mispriced is fraught with uncertainties. In this article, these uncertainties are explicitly recognized in a model of pricing a homogeneous commodity around the world. This allows for a common driver of prices, due to a base-currency effect, and country-specific factors that lead to departures from absolute PPP on account of income differences, local taxes and charges, etc. This approach leads to estimates of currency mispricing whose significance can be tested in the usual way. Using Big Mac prices, we show that the approach has advantages over the popular Big Mac Index to currency valuation.
Journal: Applied Economics
Pages: 2297-2312
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394975
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394975
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2297-2312




Template-Type: ReDIF-Article 1.0
Author-Name: Xin Geng
Author-X-Name-First: Xin
Author-X-Name-Last: Geng
Author-Name: Manuel A. Hernandez
Author-X-Name-First: Manuel A.
Author-X-Name-Last: Hernandez
Title: Aid, policies and growth: a nonlinear reassessment
Abstract: 
 The association between foreign aid and growth has been controversial for decades and the evidence is quite mixed with results sensitive to data samples and modelling approaches. We reassess the relationship between aid, policy and growth implementing a novel semiparametric estimation method that allows for nonlinearities and controls for endogeneity. The results show that the aid-policy-growth relationship is complex. Aid inflows do not seem growth-enhancing, except at very high levels (above 7% of Aid/GDP), whereas the effect may arrive with a lag at lower levels. Policy improvements are positively correlated with growth at high policy levels (above the median value) but better policies do not increase aid effectiveness.
Journal: Applied Economics
Pages: 1617-1633
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677847
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677847
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1617-1633




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph A. Mauro
Author-X-Name-First: Joseph A.
Author-X-Name-Last: Mauro
Author-Name: Sophie Mitra
Author-X-Name-First: Sophie
Author-X-Name-Last: Mitra
Title: Youth idleness in Eastern Europe and Central Asia before and after the 2009 crisis
Abstract: 
 Youth idleness is a significant problem in many countries, including in Eastern Europe and Central Asia (ECA) where it has rarely been studied. Labour market and education policies need to be based on a strong knowledge base on the Not in Employment, Education or Training (NEET) population. This paper uses micro-level data from the early 2000s through 2011 to fill knowledge gaps. NEET rates for different age intervals, gender and educational attainment are investigated for the ECA region and countries within. We find that the NEET rate in ECA was declining prior to the 2009 crisis and increased afterwards, with a more pronounced impact on males. Our findings reveal considerable heterogeneity across countries likely due to varying demographics, labour market conditions and education policies. Policies on idle youths in this region need to be tailored to varying national situations. This paper also suggests pathways for future research.Abbreviations: NEET: Not in Employment, Education or Training; ECA: Eastern Europe and Central Asia
Journal: Applied Economics
Pages: 1634-1655
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677848
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677848
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1634-1655




Template-Type: ReDIF-Article 1.0
Author-Name: Tinna Laufey Ásgeirsdóttir
Author-X-Name-First: Tinna Laufey
Author-X-Name-Last: Ásgeirsdóttir
Author-Name: Kristín Helga Birgisdóttir
Author-X-Name-First: Kristín Helga
Author-X-Name-Last: Birgisdóttir
Author-Name: Hanna Björg Henrysdóttir
Author-X-Name-First: Hanna Björg
Author-X-Name-Last: Henrysdóttir
Author-Name: Thorhildur Ólafsdóttir
Author-X-Name-First: Thorhildur
Author-X-Name-Last: Ólafsdóttir
Title: Health-related quality of life and compensating income variation for 18 health conditions in Iceland
Abstract: 
 Using data from an Icelandic health and well-being survey, carried out in 2007, 2009, and 2012, we estimate the value of health-related suffering in two different ways. Our primary aim is to obtain the monetary compensation needed to maintain the same level of well-being with and without 18 health conditions using the compensating-income-variation approach. This method employs individual well-being measures with no hypothetical situations involved, thus offering a solution to biases of frequently used methods to value non-marketed goods. We also use zero-one normalization of regression coefficients to estimate health-related quality-of-life weights. Results from monetary valuations indicate that 1,685,594 USD are needed per year to compensate for the presence of melancholy, 206,273 USD for frequent headaches, 153,396 USD for severely low vision, and 80,824 USD for severe monthly menstrual cramps. This research adds to the literature by employing two rarely used methods to a range of health conditions. By valuing several different conditions with the same sample and methodology this research provides a ranking between the conditions, aiding policy makers in prioritizing scarce resources. We do however advise against using the normalization method for policy purposes at this point, due to the deviation of results from the general literature.
Journal: Applied Economics
Pages: 1656-1670
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677849
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677849
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1656-1670




Template-Type: ReDIF-Article 1.0
Author-Name: Darja Peljhan
Author-X-Name-First: Darja
Author-X-Name-Last: Peljhan
Author-Name: Katja Zajc Kejžar
Author-X-Name-First: Katja
Author-X-Name-Last: Zajc Kejžar
Author-Name: Nina Ponikvar
Author-X-Name-First: Nina
Author-X-Name-Last: Ponikvar
Title: OWNERSHIP STRUCTURE AND FIRM EXIT ROUTES
Abstract: 
 Our study presents empirical evidence about the role of ownership structure for firm exit probability by explicitly differentiating between distinct exit routes (bankruptcy and forced liquidation, voluntary liquidation, mergers and acquisitions – M&A, and removal from the court register). Based on the population of Slovenian firms in the 2006–2012 period and using multinomial probit, our findings support the predictions of agency theory. Ownership concentration, share of the largest owner, and the difference in shares between two largest owners all decrease the likelihood of exit for all studied exit routes but M&A. The magnitude of their impact is largest for exits, in which owners play a decisive role, i.e. voluntary liquidation and removal. The link between the number of primary owners and exit likelihood is U-shaped with the lowest exit probability for firms with around two owners.
Journal: Applied Economics
Pages: 1671-1686
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677850
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677850
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1671-1686




Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Merkle
Author-X-Name-First: Jessica
Author-X-Name-Last: Merkle
Author-Name: Michelle Phillips
Author-X-Name-First: Michelle
Author-X-Name-Last: Phillips
Title: A tale of two unions: divergent platforms and their constituencies
Abstract: 
 The median voter theorem has regularly been used in economics to represent the behaviour of teachers unions. Little empirical work, however, tests whether this framework is a good fit for teachers unions. We examine voting behaviour in union representative elections between the National Education Association and the American Federation of Teachers and find evidence of divergent constituencies. We investigate whether the median voter explains the outcomes of elections in 1977–1979. If both teachers unions select the platform desired by the median voter, there should be no systematic differences in voter preferences for unions. We find that these unions were fundamentally different and attracted distinct voting coalitions. The main implication of this study is that researchers should consider these two unions, and their effect on districts, as distinct.
Journal: Applied Economics
Pages: 1687-1703
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677851
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677851
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1687-1703




Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Avenali
Author-X-Name-First: Alessandro
Author-X-Name-Last: Avenali
Author-Name: Andrea Boitani
Author-X-Name-First: Andrea
Author-X-Name-Last: Boitani
Author-Name: Giuseppe Catalano
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Catalano
Author-Name: Giorgio Matteucci
Author-X-Name-First: Giorgio
Author-X-Name-Last: Matteucci
Author-Name: Andrea Monticini
Author-X-Name-First: Andrea
Author-X-Name-Last: Monticini
Title: Standard costs of regional public rail passenger transport: evidence from Italy
Abstract: 
 The paper estimates the standard cost in Italian regional public rail passenger transport services (LPTR), depending on service characteristics. The results highlight the crucial role of: number of seats per ride, commercial speed, service size and length of rail tracks. The model also shows the positive link between investment in rolling stock and the unit cost of the service. Finally, based on the empirical evidence, we propose regulatory adjustments to accomplish policy targets regarding the fair allocation of public LPTR funds to Regions and Local Authorities and a more efficient use of (scarce) local and national public resources.
Journal: Applied Economics
Pages: 1704-1717
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677852
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677852
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1704-1717




Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Identifying uncertainty shocks using world diffusion index
Abstract: 
 In this study, a world diffusion index is developed to measure how uncertainty shocks have diffused among 179 economies and caused contractions in the world growth cycles. This index is simply defined as the percentage share of the number of expanding countries. It identifies four uncertainty shocks: the oil crisis of 1973; the bursting of the information technology bubble in 2000; the credit crunch of 2007; and the European debt crisis of 2010. To overcome the problem of data unavailability in emerging market economies, the annual GDP values of 179 economies are transformed through temporal disaggregation, and the dating of quarterly growth cycles is implemented as per the OECD method. The empirical findings indicate that each of the uncertainty shocks caused severe contractions in the advanced economies but that the emerging market economies experienced such contractions only during the credit crunch of 2007. Policy implications are also discussed.
Journal: Applied Economics
Pages: 1718-1732
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677853
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677853
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1718-1732




Template-Type: ReDIF-Article 1.0
Author-Name: Frederick Dongchuhl Oh
Author-X-Name-First: Frederick Dongchuhl
Author-X-Name-Last: Oh
Author-Name: Junghum Park
Author-X-Name-First: Junghum
Author-X-Name-Last: Park
Title: Credit ratings and corporate disclosure behaviour: evidence from regulation fair disclosure in Korea
Abstract: 
 This article provides evidence that firms with high market expectations disclose more information to investors, utilizing the fair disclosure regulation in Korea to proxy for their disclosure choices. This finding is consistent with the argument that in order to retain their dominant positions, highly evaluated firms are more concerned about the market’s perception of them as providers of timely and detailed disclosure. We also find that the impact of market expectations on disclosure is more pronounced for chaebol firms. Combined with prior research on the relationship between firm performance and voluntary disclosure, we provide important implications for the determinants of corporate disclosure
Journal: Applied Economics
Pages: 3481-3494
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262521
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262521
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3481-3494




Template-Type: ReDIF-Article 1.0
Author-Name: María del Carmen Ramos-Herrera
Author-X-Name-First: María del Carmen
Author-X-Name-Last: Ramos-Herrera
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Title: An empirical characterization of the effects of public debt on economic growth
Abstract: 
 Based on a data set of 115 economies, this article empirically investigates the relation between public debt and economic growth. Using the World Bank’s classification for income groups, we initially find that those countries that present the lowest public debt are characterized by the highest economic growth, while the smallest growth rates are associated with the highest public debt. Nevertheless, this conclusion is tempered when we analyse the countries by income level: low-income countries have a different behaviour with respect to lower-middle, upper-middle and high-income countries. When using the IMF’s country classification, the results do not suggest a clear pattern in the public debt–economic growth nexus across different countries, but indicate a heterogeneous relationship between such key macroeconomic variables.
Journal: Applied Economics
Pages: 3495-3508
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262522
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262522
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3495-3508




Template-Type: ReDIF-Article 1.0
Author-Name: Julie L. Hotchkiss
Author-X-Name-First: Julie L.
Author-X-Name-Last: Hotchkiss
Author-Name: M. Melinda Pitts
Author-X-Name-First: M. Melinda
Author-X-Name-Last: Pitts
Author-Name: Mary Beth Walker
Author-X-Name-First: Mary Beth
Author-X-Name-Last: Walker
Title: Impact of first birth career interruption on earnings: evidence from administrative data
Abstract: 
 This article makes use of unique administrative data to expand the understanding of the role women’s intermittency decisions play in the determination of her wages. We demonstrate that treating intermittency as exogenous significantly overstates its impact. The intermittency penalty also increases in the education level of the woman. The penalty for women with a high school degree with an average amount of intermittency during 6 years after giving birth to her first child is roughly half the penalty for college graduates. We also demonstrate the value of making use of an index to capture multiple dimension of the intermittency experience, and illustrate the importance of firm dynamics in the determination of a woman’s wage.
Journal: Applied Economics
Pages: 3509-3522
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262523
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262523
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3509-3522




Template-Type: ReDIF-Article 1.0
Author-Name: Idries M. Al-Jarrah
Author-X-Name-First: Idries M.
Author-X-Name-Last: Al-Jarrah
Author-Name: Khalid S. Al-Abdulqader
Author-X-Name-First: Khalid S.
Author-X-Name-Last: Al-Abdulqader
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: Cost-efficiency and financial and geographical characteristics of banking sectors in the MENA countries
Abstract: 
 We utilize the translog stochastic frontier model to estimate the cost-efficiency levels for conventional and Islamic, Cooperation Council (GCC) and non-GCC banks in the Middle East and North African (MENA) countries. The estimated cost-efficiency averages around 77% for those MENA banks, but with slight changes in this score for the individual countries. The results also show that the banks in the GCC countries are the most efficient in the region and the efficiency scores for the conventional and Islamic banks are similar. Finally, the recent financial crisis seems to have a slight impact on the observed efficiency scores of those banks.
Journal: Applied Economics
Pages: 3523-3537
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262524
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262524
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3523-3537




Template-Type: ReDIF-Article 1.0
Author-Name: Xuchen Lin
Author-X-Name-First: Xuchen
Author-X-Name-Last: Lin
Author-Name: Xiaolong Li
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Li
Author-Name: Zhong Zheng
Author-X-Name-First: Zhong
Author-X-Name-Last: Zheng
Title: Evaluating borrower’s default risk in peer-to-peer lending: evidence from a lending platform in China
Abstract: 
 Recent years have witnessed the popularity of online peer-to-peer lending, which allows individuals to borrow from and lend to each other on an Internet-based platform. Using data from a large P2P platform in China, this article explores the factors that determine the default risk based on the demographic characteristics of borrowers. Moreover, we propose a credit risk evaluation model, which can quantify the default risk of each P2P loan. Empirical results reveal that gender, age, marital status, educational level, working years, company size, monthly payment, loan amount, debt to income ratio and delinquency history play a significant role in loan defaults. Finally, we analyse the relationship between default risk and these contributory variables, and the possible causes are also discussed in this study.
Journal: Applied Economics
Pages: 3538-3545
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262526
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262526
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3538-3545




Template-Type: ReDIF-Article 1.0
Author-Name: Nejat Anbarci
Author-X-Name-First: Nejat
Author-X-Name-Last: Anbarci
Author-Name: K. Peren Arin
Author-X-Name-First: K. Peren
Author-X-Name-Last: Arin
Author-Name: Cagla Okten
Author-X-Name-First: Cagla
Author-X-Name-Last: Okten
Author-Name: Christina Zenker
Author-X-Name-First: Christina
Author-X-Name-Last: Zenker
Title: Is Roger Federer more loss averse than Serena Williams?
Abstract: 
 Using data from the high-stakes 2013 Dubai professional tennis tournament, we find that, compared with a tied score, (i) male players have a higher serve speed and thus exhibit more effort when behind in score, and their serve speeds get less sensitive to losses or gains when score difference gets too large, and (ii) female players do not change their serve speed when behind, while serving slower when ahead. Thus, male players comply more with Prospect Theory exhibiting more loss aversion and reflection effect. Our results are robust to controlling for player fixed effects and characteristics with player random effects.
Journal: Applied Economics
Pages: 3546-3559
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262527
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262527
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3546-3559




Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Gogolin
Author-X-Name-First: Fabian
Author-X-Name-Last: Gogolin
Author-Name: Michael Dowling
Author-X-Name-First: Michael
Author-X-Name-Last: Dowling
Author-Name: Mark Cummins
Author-X-Name-First: Mark
Author-X-Name-Last: Cummins
Title: Individual values and household finances
Abstract: 
 We create individual cultural values measures for households and show that this is an important determinant of their financial behaviour. To date, personal cultural values have only been indirectly measured through religion and trust. But these are, at best, an approximation of true cultural values. Applying a holistic framework from the World Values Survey (WVS), we create individual measures of cultural values, and show that the self-expression values of this framework are positively associated with households’ financial decisions. Examining the individual cultural values that make up the WVS model, we further show that happiness, trust, and playing an active role in society, are individually important determinants of household financial decision-making. Our study shows that cultural values can be brought from a generalized national level to the individual level in order to improve our understanding of household financial decision-making.
Journal: Applied Economics
Pages: 3560-3578
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262528
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262528
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3560-3578




Template-Type: ReDIF-Article 1.0
Author-Name: Yashar Tarverdi
Author-X-Name-First: Yashar
Author-X-Name-Last: Tarverdi
Author-Name: Anu Rammohan
Author-X-Name-First: Anu
Author-X-Name-Last: Rammohan
Title: On the role of governance and health aid on child mortality: a cross-country analysis
Abstract: 
 Globally, child mortality rates continue to be unacceptably high despite improvement in child health outcomes. The role of macro level indicators, such as governance and health aid on child mortality, remains under-researched. The aim of this article is to analyse the influence of governance and health aid on child mortality using cross-country data. A negative association between governance and the mortality rate of children less than 5 years of age was found using System Generalised Method of Moments Dynamic Panel, the linkage also exists in the results of quantile and semi-parametric regression. However, as in other literature, the role of health aid on child mortality remains ambiguous.
Journal: Applied Economics
Pages: 845-859
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208351
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208351
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:845-859




Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Antonio Lucena Aiube
Author-X-Name-First: Fernando Antonio Lucena
Author-X-Name-Last: Aiube
Author-Name: Carlos Patricio Samanez
Author-X-Name-First: Carlos Patricio
Author-X-Name-Last: Samanez
Author-Name: Tara Keshar Nanda Baidya
Author-X-Name-First: Tara Keshar Nanda
Author-X-Name-Last: Baidya
Author-Name: Larissa de Oliveira Resende
Author-X-Name-First: Larissa de Oliveira
Author-X-Name-Last: Resende
Title: Evaluating the risk premium in the U.S.A. natural gas market: evidence from low-price regime
Abstract: 
 In recent years, the U.S.A. natural gas market has seen enormous changes. The expectations of abundant supply of shale gas and the slow U.S.A. economic recovery have pushed gas prices below US$ 4 MMBtu. Although shale gas is a new promising source of unconventional energy, investors face uncertain investment plans. In this study, we investigate the risk premium by comparing behaviour before and after the change point in agents risk perception. Unlike traditional empirical research on risk premium, we use the parametric, two-factor model of Schwartz and Smith (2000) to evaluate the implied risk premium term structure from futures prices traded on the New York Mercantile Exchange (NYMEX). We compare our findings with other empirical results and find that the change point lies at the beginning of the low-price regime. When we compare periods before and after the change point, we observe that the risk premium changed, not only in sign, but also in magnitude.
Journal: Applied Economics
Pages: 860-871
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208353
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208353
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:860-871




Template-Type: ReDIF-Article 1.0
Author-Name: Wai-Mun Chia
Author-X-Name-First: Wai-Mun
Author-X-Name-Last: Chia
Author-Name: Mengling Li
Author-X-Name-First: Mengling
Author-X-Name-Last: Li
Author-Name: Huanhuan Zheng
Author-X-Name-First: Huanhuan
Author-X-Name-Last: Zheng
Title: Behavioral heterogeneity in the Australian housing market
Abstract: 
 We propose a heterogeneous agent model (HAM) of four groups of investors with Markov chain regime-dependent beliefs for the housing market. Within the Markov switching framework, we take into account how heterogeneous investors shift their trading behaviour in response to changes in housing market conditions. The model is estimated and compared with the benchmark rational expectation models using the Australian housing market data from 1982Q1 to 2013Q2. We find evidence of within- and between-group heterogeneity in the Australian housing market. We show that HAM with Markov switching beliefs provides a better in-sample estimation efficiency and outperforms the conventional rational expectation models in terms of out-of-sample prediction.
Journal: Applied Economics
Pages: 872-885
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208355
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208355
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:872-885




Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Yueli Tang
Author-X-Name-First: Yueli
Author-X-Name-Last: Tang
Author-Name: Peng Guo
Author-X-Name-First: Peng
Author-X-Name-Last: Guo
Title: Asymmetric spillover effects between the Shanghai and Hong Kong stock markets: evidence from quantile lagged regression
Abstract: 
 This article surveys the asymmetric spillover effects between the mainland China-based Shanghai Composite Index (SCI) and the Hong Kong based Hang Seng Index (HSI) using a quantile lagged regression model. Compared to previous studies, this article, based on data before and after the 2008 global financial crisis, presents a more detailed analysis, as we investigate the spillovers in terms of returns, volatilities and exchange rates between the renminbi (RMB) and the Hong Kong dollar (HKD) throughout the entire conditional return distribution, including the central quantiles, which are closely related to the normal circumstances, and the extreme quantiles, which correspond to the bear and bull markets. First, we find that the return spillovers from its lagged returns or from the other index not only vary across time but also depend on stock state. Second, while return volatility may boost the stock market in a bull market, it accelerates the decline in a bear market. Third, the depreciation of the RMB relative to the HKD does not significantly affect current returns for the HSI, while it negatively affects current returns for the SCI in a bad state after the crisis. The findings presented in this article will facilitate investors’ understanding of the two stock markets.
Journal: Applied Economics
Pages: 886-902
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208356
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208356
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:886-902




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Falk
Author-X-Name-First: Martin
Author-X-Name-Last: Falk
Author-Name: Federico Biagi
Author-X-Name-First: Federico
Author-X-Name-Last: Biagi
Title: Relative demand for highly skilled workers and use of different ICT technologies
Abstract: 
 This study investigates the relationship between several indicators of ICT usage and digitalization and the relative demand for highly skilled workers. The data are based on two-digit industry-level information on seven European countries for the period 2001–2010. For manufacturing industries, static fixed-effects models show that the share of employees with internet broadband access, the diffusion of mobile internet access and the use of enterprise resource planning (ERP) systems and automatic data exchange combined with electronic invoicing are all significantly and positively related to skill intensity in the industries observed. For service industries, only mobile internet usage intensity is significant. Specifically for manufacturing, a 10-point increase in the percentage of firms using ERP systems is associated with an increase in the share of highly skilled workers by 0.4 percentage points. These estimates indicate that the increase in ERP system usage during the period studied accounted for 30% of the increase in the share of workers with a tertiary degree across manufacturing industries and countries. The results are robust with respect to the estimation method and the potential endogeneity of ICT.
Journal: Applied Economics
Pages: 903-914
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208357
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208357
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:903-914




Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Mesly
Author-X-Name-First: Olivier
Author-X-Name-Last: Mesly
Author-Name: François-Éric Racicot
Author-X-Name-First: François-Éric
Author-X-Name-Last: Racicot
Title: A stylized model of home buyers’ and bankers’ behaviours during the 2007-2009 US subprime mortgage crisis: a predatory perspective
Abstract: 
 We examine the behaviour of market agents during the years leading to the 2008 US subprime mortgage crisis using a stylized capital asset pricing model model. In our study, an average investor eager to make money by flipping houses meets a banker who offers him subprime mortgage deals. We refer to recent research that shows the mechanics of the psychological and behavioural components of these two market agents. In particular, much in line with the famous Stanford experiment, it is assumed that investors adopt a predator or a prey position. Our analysis shows that, given a historical tendency towards financial predatory acts on the part of market agents (including buyers), government regulations should be adapted and strengthened to face this dooming reality.
Journal: Applied Economics
Pages: 915-928
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208358
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208358
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:915-928




Template-Type: ReDIF-Article 1.0
Author-Name: Zhi-Fu Mi
Author-X-Name-First: Zhi-Fu
Author-X-Name-Last: Mi
Author-Name: Yi-Ming Wei
Author-X-Name-First: Yi-Ming
Author-X-Name-Last: Wei
Author-Name: Bao-Jun Tang
Author-X-Name-First: Bao-Jun
Author-X-Name-Last: Tang
Author-Name: Rong-Gang Cong
Author-X-Name-First: Rong-Gang
Author-X-Name-Last: Cong
Author-Name: Hao Yu
Author-X-Name-First: Hao
Author-X-Name-Last: Yu
Author-Name: Hong Cao
Author-X-Name-First: Hong
Author-X-Name-Last: Cao
Author-Name: Dabo Guan
Author-X-Name-First: Dabo
Author-X-Name-Last: Guan
Title: Risk assessment of oil price from static and dynamic modelling approaches
Abstract: 
 The price gap between West Texas Intermediate (WTI) and Brent crude oil markets has been completely changed in the past several years. The price of WTI was always a little larger than that of Brent for a long time. However, the price of WTI has been surpassed by that of Brent since 2011. The new market circumstances and volatility of oil price require a comprehensive re-estimation of risk. Therefore, this study aims to explore an integrated approach to assess the price risk in the two crude oil markets through the value at risk (VaR) model. The VaR is estimated by the extreme value theory (EVT) and GARCH model on the basis of generalized error distribution (GED). The results show that EVT is a powerful approach to capture the risk in the oil markets. On the contrary, the traditional variance–covariance (VC) and Monte Carlo (MC) approaches tend to overestimate risk when the confidence level is 95%, but underestimate risk at the confidence level of 99%. The VaR of WTI returns is larger than that of Brent returns at identical confidence levels. Moreover, the GED-GARCH model can estimate the downside dynamic VaR accurately for WTI and Brent oil returns.
Journal: Applied Economics
Pages: 929-939
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208359
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208359
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:929-939




Template-Type: ReDIF-Article 1.0
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: Global and regional linkages across market cycles: evidence from partial correlations in a network framework
Abstract: 
 Using a novel approach, partial correlations within a complex network framework, we examine the degree of globalization and regionalization of stock market linkages and how these linkages vary across different economic or market cycles. Our results show that geography influences network linkages differently across economic cycles. During normal times, regional factors shape market linkages; however, during periods of turbulence, global rather than regional factors drive the linkages. The network traffic also increases during times of turmoil, but contrary to previous results, we do not find a consistent or overwhelming increase in positive linkages between markets. Also, contrary to expectations, financial centres such as the US, China, Japan, and the UK command a greater regional rather than global influence. Our findings have implications for asset pricing and policy decision making.
Journal: Applied Economics
Pages: 3551-3582
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578851
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578851
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3551-3582




Template-Type: ReDIF-Article 1.0
Author-Name: Oladipo Olalekan David
Author-X-Name-First: Oladipo Olalekan
Author-X-Name-Last: David
Title: Powering economic growth and development in Africa: telecommunication operations
Abstract: 
 This study investigates the effect of telecommunication operations on economic growth and development in selected African countries. The analysis considers a panel of 46 African countries from 2000 to 2015. To measure economic growth, real gross domestic product serves as the proxy, while economic development is measured by the Human Development Index, and telecommunication operations by a composite index of telecommunication computed from mobile line, fixed/CDM line and Internet access penetration via principal component analysis. The physical capital stock is measured by gross fixed capital formation, level of employment by the employment to population ratio, human capital development by enrolment in secondary education for both sexes and technology transfer by net inflows of foreign direct investment in Africa. The empirical results suggest that telecommunication operations promote economic growth and development in Africa. These results imply that for every positive expansion in telecommunication operations and physical capital stock, aggregate output and standard of living will adjust positively in Africa. Thus, an appropriate policy to improve overall investment in Africa and most especially in the telecommunication sector since the spillover effect cut across other sectors and the general economic performance.
Journal: Applied Economics
Pages: 3583-3607
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578852
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578852
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3583-3607




Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Bellino
Author-X-Name-First: Antonella
Author-X-Name-Last: Bellino
Author-Name: Giuseppe Celi
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Celi
Title: Disentangling the migration-trade nexus: the pro-trade effects of immigrants and emigrants in the presence of vertical and horizontal product differentiation
Abstract: 
 This paper presents an exploration of the migration-trade nexus taking the case of Italy by crossing the two dimensions of migration (immigration and emigration) and the two dimensions of intra-industry trade (vertical and horizontal). This empirical strategy proves useful in refining interpretation of econometric results. In general, we find that both immigration and emigration are positively and significantly related to intra-industry trade. However, the magnitude and the statistical significance of the impact of migration on trade vary, depending on the type of trade flows considered (vertical or horizontal), the direction of migration (immigration or emigration) and the partner countries considered (OECD or non-OECD). In particular, we find that immigrants from non-OECD countries have a positive and significant impact on both ‘variety trade’ and ‘quality trade’, while immigrants from OECD countries significantly affect ‘variety trade’ only. Emigrants to non-OECD countries have positive effect only on ‘variety trade’. These findings are largely consistent with predictions deriving from theoretical models of intra-industry trade and from the literature on migration-trade nexus.
Journal: Applied Economics
Pages: 3665-3688
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581912
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581912
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3665-3688




Template-Type: ReDIF-Article 1.0
Author-Name: Ping Wang
Author-X-Name-First: Ping
Author-X-Name-Last: Wang
Author-Name: Henry W. Kinnucan
Author-X-Name-First: Henry W.
Author-X-Name-Last: Kinnucan
Author-Name: Patricia A. Duffy
Author-X-Name-First: Patricia A.
Author-X-Name-Last: Duffy
Title: The effects of rising labour costs on global supply chains: the case of China’s cotton yarn industry
Abstract: 
 Rapid economic growth in China and India has resulted in rapidly rising labour costs in those countries. In this study a Muth-type model is used to assess the potential effects of this development on global supply chains using China’s cotton yarn industry as a case study. The model considers i) product differentiation at the yarn level; ii) imperfect competition in the markets for cotton yarn and raw cotton fibre, iii) input substitution between raw cotton fibre, labour, and capital; and iv) offsetting increases in the demand for cotton yarn caused by rising consumer income. Results suggest the effects of rising labour costs on the supply chain are modest, and easily swamped or obscured by the effects of rising income. Increases in industry market power (both oligopoly and oligopsony) have the same effect on the supply chain as increases in labour costs, raising prices to consumers of cotton yarn, and lowering prices to input suppliers, including foreign suppliers of raw cotton fibre. The combined effects of increases in labour costs and income have increased the factor shares for labour and to a lesser extent capital at the expense of raw cotton fibre.
Journal: Applied Economics
Pages: 3608-3623
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584372
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584372
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3608-3623




Template-Type: ReDIF-Article 1.0
Author-Name: Goodness C. Aye
Author-X-Name-First: Goodness C.
Author-X-Name-Last: Aye
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Chi Keung Marco Lau
Author-X-Name-First: Chi Keung Marco
Author-X-Name-Last: Lau
Author-Name: Xin Sheng
Author-X-Name-First: Xin
Author-X-Name-Last: Sheng
Title: Is there a role for uncertainty in forecasting output growth in OECD countries? Evidence from a time-varying parameter-panel vector autoregressive model
Abstract: 
 This paper uses a time-varying parameter-panel vector autoregressive (TVP-PVAR) model to analyze the role played by domestic and US news-based measures of uncertainty in forecasting the growth of industrial production of 12 Organisation for Economic Co-operation and Development (OECD) countries. Based on a monthly out-of-sample period of 2009:06 to 2017:05, given an in-sample of 2003:03 to 2009:05, there are only 46% of cases where domestic uncertainty can improve the forecast of output growth relative to a baseline monetary TVP-PVAR model, which includes inflation, interest rate and nominal exchange rate growth, besides output growth. Moreover, including US uncertainty does not necessarily improve the forecasting performance of output growth from the TVP-PVAR model which includes only the domestic uncertainty along with the baseline variables. So, in general, while uncertainty is important in predicting the future path of output growth in the 12 advanced economies considered, a forecaster can do better in majority of the instances by just considering the information from standard macroeconomic variables.
Journal: Applied Economics
Pages: 3624-3631
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584373
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584373
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3624-3631




Template-Type: ReDIF-Article 1.0
Author-Name: Juliana Gonçalves Taveira
Author-X-Name-First: Juliana Gonçalves
Author-X-Name-Last: Taveira
Author-Name: Eduardo Gonçalves
Author-X-Name-First: Eduardo
Author-X-Name-Last: Gonçalves
Author-Name: Ricardo Da Silva Freguglia
Author-X-Name-First: Ricardo Da Silva
Author-X-Name-Last: Freguglia
Title: The missing link between innovation and performance in Brazilian firms: a panel data approach
Abstract: 
 This study aims to verify if there is a positive relationship between innovation and productivity and/or profit in Brazil using a recursive model in line with the Crépon, Duguet and Mairesse (CDM) model. Using a rich combination of three databases, this paper considers a sample of more than 10,000 Brazilian industrial firms and the period 2001–2008. Besides using R&D expenditure as a measure of innovation input, this study also tests the technical-scientific personnel stock as a more appropriate measure of innovative effort in emerging countries. This variable considers the tacit knowledge intrinsic to the worker and corrects a possible measurement error bias in the R&D expenditure variable. The empirical strategy uses a reduced form of the CDM model in a panel data structure to provide consistent estimates as it controls for selectivity, simultaneity and endogeneity due to unobserved firm effects. There are still few studies that apply the CDM model for panel data, especially regarding developing countries. The main results suggest that technical-scientific workers positively affect the firms’ probability to innovate while R&D expenditure has no effect. The results also highlight the absence of the effect of innovation on productivity and profit, suggesting a missing link between innovative efforts and Brazilian firms’ performance.
Journal: Applied Economics
Pages: 3632-3649
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584374
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584374
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3632-3649




Template-Type: ReDIF-Article 1.0
Author-Name: Sara Ayllón
Author-X-Name-First: Sara
Author-X-Name-Last: Ayllón
Author-Name: Dragana Radicic
Author-X-Name-First: Dragana
Author-X-Name-Last: Radicic
Title: Product innovation, process innovation and export propensity: persistence, complementarities and feedback effects in Spanish firms
Abstract: 
 Drawing on a longitudinal data of Spanish manufacturing firms, this study explores the persistence of technological innovation and exports, their potential complementary relations and feedback effects. Empirical results suggest the presence of both true and spurious state dependence in all three activities. True state dependence in technical innovation and exports implies intertemporal spillovers relevant to the evaluation of innovation and export policy measures. However, given that results also suggest spurious state dependence, firm-specific characteristics should be taken into account in promoting technological innovations and exports. In addition, we find a strong complementarity between product and process innovation both through a contemporaneous effect and via unobserved firm characteristics. However, concerning complementarity between innovation and exports, results suggests complementarity only through contemporaneous effects. Finally, we find no support for the causal link from past product and process innovations to current export activities.
Journal: Applied Economics
Pages: 3650-3664
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584376
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584376
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3650-3664




Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Fiorino
Author-X-Name-First: Nadia
Author-X-Name-Last: Fiorino
Author-Name: Emma Galli
Author-X-Name-First: Emma
Author-X-Name-Last: Galli
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Title: Dimensions of civic activism and their effectiveness in exposing corruption: evidence from Italy
Abstract: 
 This article studies the influence of civic activism in exposing corruption across Italian regions. Using different dimensions of civic activism (including local and national newspapers, the internet, blood donors, and voter turnout), we make the distinction between active (media, internet, voters) and passive (blood donors) activism. Results show interesting different impacts of civic activism on corruption. In particular, voter turnout, blood donors, and national newspaper diffusion consistently increased exposure of corruption, while the internet and local newspapers showed opposite effects. Thus, local newspapers and the internet point to the possibility of media capture (influence) with regard to corruption exposure. The main findings hold following the substantial reforms in the nineties (called Mani Pulite).
Journal: Applied Economics
Pages: 663-675
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1506086
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1506086
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:663-675




Template-Type: ReDIF-Article 1.0
Author-Name: Junyi Wan
Author-X-Name-First: Junyi
Author-X-Name-Last: Wan
Author-Name: Lijun Zeng
Author-X-Name-First: Lijun
Author-X-Name-Last: Zeng
Author-Name: Jiazhuo Ao
Author-X-Name-First: Jiazhuo
Author-X-Name-Last: Ao
Title: Specific investment, relational governance and cooperation risk: from the perspective of farmers in China&#x2019;s &#x201C;Company+Farmers&#x201D; alliance
Abstract: 
 The &#x2018;Company+&#xA0;Farmers&#x2019; alliance is the main organization for China&#x2019;s agricultural industrialization management. Based on the survey data of farmers cooperating with companies in Guangdong and Jiangxi Provinces, this article explores the relationship among farmers&#x2019; specific investment, the relational governance of the alliance and farmers&#x2019; cooperation risk. The results show that the relational governance of the alliance can be divided into cognitive relational governance and coordinated relational governance. Among these types, cognitive relational governance can significantly promote farmers&#x2019; specific investment. However, with the increase in farmers&#x2019; specific investment, farmers&#x2019; cooperation risk is significantly improved, and the coordinated relational governance can significantly enhance the role of farmers&#x2019; material-specific investment in promoting cooperation risk. Therefore, agricultural enterprises can use cognitive relational governance to encourage farmers&#x2019; specific investment, and the specific investment of farmers must rely on a contract governance mechanism.
Journal: Applied Economics
Pages: 676-686
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1508868
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1508868
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:676-686




Template-Type: ReDIF-Article 1.0
Author-Name: Honghua Chen
Author-X-Name-First: Honghua
Author-X-Name-Last: Chen
Author-Name: Zhihong Tian
Author-X-Name-First: Zhihong
Author-X-Name-Last: Tian
Author-Name: Fen Xu
Author-X-Name-First: Fen
Author-X-Name-Last: Xu
Title: What are cost changes for produce implementing traceability systems in China? Evidence from enterprise A
Abstract: 
 Based on the survey data and information, this paper conducts analysis on the extra cost of traceability systems for agro-product enterprises in China. Calculation on concrete pricing of traceable products is conducted with Enterprise A as an example by using break-even pricing. The price that consumers are willing to pay for 10 traceable products in Enterprise A was measured by collecting 576 valid questionnaires in three cities in China. The benefit&#x2013;cost ratio, contribution margin ration and profit growth rate are figured before and after implementing the traceability system to illustrate if Enterprise A is profitable after implementing the traceability system. The results show that extra cost incurred by the traceability system of Enterprise A is not high in China; it is not the main reason for the high price of traceable products. Enterprise A increases its operating efficiency and profit growth rate after implementing the traceability system. The pricing of traceable product should consider target consumers&#x2019; willingness to pay rather than setting prices blindingly. Government support and education to consumers are important to promote the construction of traceability system at the early stage of establishment of traceability system in China.
Journal: Applied Economics
Pages: 687-697
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1510470
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1510470
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:687-697




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Triguero Ruiz
Author-X-Name-First: Francisco
Author-X-Name-Last: Triguero Ruiz
Author-Name: Antonio Avila-Cano
Author-X-Name-First: Antonio
Author-X-Name-Last: Avila-Cano
Title: The distance to competitive balance: a cardinal measure
Abstract: 
 Competitive balance is a key variable in the analysis of sports competitions. There are several indexes that measure competitive balance but, either they are not a mathematical metric or they do not have the unit interval as a range. Therefore, these indexes do not indicate the magnitude of the differences, and the measurements cannot be interpreted as percentages. We characterize the space of all admissible configurations of the results of a competition. Then, we construct a new index, based on the concept of distance, whose range is the unit interval, and define it as a function in a metric space. So, it solves issues linked to the limited cardinality of most existing indexes, and we can answer this question: What is the meaning of the differences between the levels of competitive balance? We applied this index to the major European soccer leagues over the last twenty seasons.
Journal: Applied Economics
Pages: 698-710
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1512743
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1512743
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:698-710




Template-Type: ReDIF-Article 1.0
Author-Name: Wenchao Xu
Author-X-Name-First: Wenchao
Author-X-Name-Last: Xu
Author-Name: Man Li
Author-X-Name-First: Man
Author-X-Name-Last: Li
Author-Name: Andrew Reid Bell
Author-X-Name-First: Andrew Reid
Author-X-Name-Last: Bell
Title: Water Security and Irrigation Investment: Evidence from a Field Experiment in Rural Pakistan
Abstract: 
 This study examines the relationship between water security features and irrigation investment using data from a field survey with a choice experiment conducted in rural Pakistan. Our results generally support Besley&#x2019;s framework on the link between property right and investment incentive with an application to irrigation, although not all aspects of water security features can significantly affect farmers&#x2019; investment in irrigation. Investment increases significantly with groundwater share, but there is insufficient evidence to support that farmers&#x2019; investment is significantly and positively affected by surface water reliability. Farmers who own land or who are located further down the watercourse tend to invest more than their peers do. Existing conditions on surface water reliability significantly affect this relationship. Overall, groundwater use dominates the decision-making of investment and the role of surface water source in securing irrigation water is relatively weak from a farmer&#x2019;s perspective.
Journal: Applied Economics
Pages: 711-721
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1513634
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1513634
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:711-721




Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Asplund
Author-X-Name-First: Marcus
Author-X-Name-Last: Asplund
Author-Name: David Jinkins
Author-X-Name-First: David
Author-X-Name-Last: Jinkins
Author-Name: Chandler Lutz
Author-X-Name-First: Chandler
Author-X-Name-Last: Lutz
Author-Name: Gyorgy Paizs
Author-X-Name-First: Gyorgy
Author-X-Name-Last: Paizs
Title: Winners and losers from an announced durable tax hike: Tesla in Denmark
Abstract: 
 We study the consumer response and tax revenue implications of the early announcement of a durable good tax. In 2015, the Danish government announced a tax hike on electric vehicles several months before its implementation. There was a dramatic surge in sales of Tesla Model S vehicles just before the tax came into effect, and a dramatic ebb in the months following. We find that the government lost 169 million DKK (23 million Euro) in tax revenue on luxury vehicles by announcing the tax change before its implementation. We further find that speculation played at most a limited role in the Tesla sales surge. In total, final consumers of Teslas gained from the roll-out of the law change by avoiding the new tax.
Journal: Applied Economics
Pages: 722-730
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1520963
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1520963
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:722-730




Template-Type: ReDIF-Article 1.0
Author-Name: Yilmaz Yildiz
Author-X-Name-First: Yilmaz
Author-X-Name-Last: Yildiz
Author-Name: Mehmet Baha Karan
Author-X-Name-First: Mehmet Baha
Author-X-Name-Last: Karan
Title: Momentum or market? Determinants of large stock price changes in an emerging market
Abstract: 
 The aim of this study is to investigate the determinants of large price changes in Turkey. We also provide additional evidence on determinants of large price changes in different macroeconomic environments, specifically on the pre-crisis and post-crisis periods. Using recurrent event analysis with stratified observations and frailty effects, our findings suggest that momentum has a significant impact on large price changes during both pre-crisis&#xA0;and post-crisis periods. However, the impact of market is more significant on the estimation of large price declines in the pre-crisis period and of large price increases in the post-crisis period. Additional findings suggest that liquidity and market-to-book ratio have positive, firm size has a negative impact on likelihood of large price changes regardless of the direction of the stock price change and macroeconomic environment. Findings of this study provide new insights into the understanding of large price changes in an emerging market.
Journal: Applied Economics
Pages: 731-742
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524128
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524128
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:731-742




Template-Type: ReDIF-Article 1.0
Author-Name: Oliviero A. Carboni
Author-X-Name-First: Oliviero A.
Author-X-Name-Last: Carboni
Author-Name: Paolo Russu
Author-X-Name-First: Paolo
Author-X-Name-Last: Russu
Title: Measuring and forecasting regional environmental and economic efficiency in Italy
Abstract: 
 Environmental and economic efficiency has being receiving growing attention among researchers. In general terms, this concept is related to the capability of the economic systems to employ natural resources efficiently, so as to increase economic and human wealth. This clearly implies that both the economic and ecological aspects of decisions ought to be considered. Bearing this in mind, this article considers economic and ecological performance together, by applying data envelopment analysis and the Malmquist productivity index to investigate the efficiency of the 20 Italian regions from 2004 to 2011. The results reveal that the northern regions have been more efficient than the southern ones, highlighting the strong geographical differences between the two. Furthermore, this article uses the grey system theory to forecast regional, economic and environmental efficiency. The results of the forecasting analysis show that the north–south duality remains strong and will possibly increase since the regions in the south get worse in term of environmental and economic efficiency.
Journal: Applied Economics
Pages: 335-353
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313954
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313954
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:335-353




Template-Type: ReDIF-Article 1.0
Author-Name: Yimin Zhou
Author-X-Name-First: Yimin
Author-X-Name-Last: Zhou
Author-Name: Liyan Han
Author-X-Name-First: Liyan
Author-X-Name-Last: Han
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: Is the relationship between gold and the U.S. dollar always negative? The role of macroeconomic uncertainty
Abstract: 
 The main work of this article is to access the role of macroeconomic uncertainty in effecting the correlation between gold and the dollar. The empirical analysis is divided into two parts. Firstly, we examine the impact of macroeconomic uncertainty on short and long correlation between gold and the dollar. Secondly, we analyse the explanatory power of economic uncertainty for the abnormal market relation between gold and the dollar with a threshold model. In particular, we investigate impacts of economic uncertainty sourced from different economies. The empirical results indicate that economic uncertainty generates direct impacts on the correlation between gold and the dollar. Moreover, our results emphasize that uncertainty sourced from different economies have different impacts on the dynamics between gold and the dollar. This article also presents the relative contribution of gold and the dollar shocks to the likelihood of being in the high-uncertainty regime. These results have implications for risk management, international asset allocation and hedging strategies.
Journal: Applied Economics
Pages: 354-370
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313956
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313956
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:354-370




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Cavalcanti Ferreira
Author-X-Name-First: Pedro Cavalcanti
Author-X-Name-Last: Ferreira
Author-Name: Guido Penido Guimarães
Author-X-Name-First: Guido Penido
Author-X-Name-Last: Guimarães
Title: The impact of heterogeneity of discount factors and asset returns on inequality
Abstract: 
 We investigate the effect of differential access to financial markets, discount factor and wealth endowment on poverty and inequality. We construct a model of educational and savings choice with heterogeneous agents. Motivated by empirical evidence, in this economy the return on savings is a non-decreasing function of the amount saved. As expected, more patient households tend to become wealthier and more educated. The heterogeneity on portfolio returns is shown to be key to our main result: the model closely fits the data on income and wealth inequalities, being able to explain the existing Brazil’s inequality patterns. The model was also calibrated to the US, with similar fit. We then evaluate two types of public policies based on cash transfer schemes (CTSs), that aim to reduce poverty and inequality. We find that the CTS version in which receiving the benefit is conditional on educating the household’s youngster outperforms its unconditional version in almost all dimensions analysed.
Journal: Applied Economics
Pages: 371-388
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1316825
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316825
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:371-388




Template-Type: ReDIF-Article 1.0
Author-Name: Baomin Dong
Author-X-Name-First: Baomin
Author-X-Name-Last: Dong
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Author-Name: Xili Ma
Author-X-Name-First: Xili
Author-X-Name-Last: Ma
Author-Name: Peng Li
Author-X-Name-First: Peng
Author-X-Name-Last: Li
Title: On the impacts of carbon tax and technological progress on China
Abstract: 
 Using a dynamic national computable general equilibrium model, we investigate the impact of carbon tax and energy efficiency improvement on the economy and environment of China. The Chinese social account matrix is presented based upon the latest input–output table (2012 IO table) and other data. The business as usual (BAU) scenario is designed according to several forecasts about China by 2030, followed by six policy scenarios, including different levels of carbon tax and technological progress as well as their combinations. The results show that carbon tax will frustrate the overall economic growth slightly. The CO2 emission will be 13.81% lower in 2030 compared to BAU case if the carbon tax scheme is carried out at a rate of 200 RMB/ton of CO2. Technological progress will stimulate the economic growth, enrich the household and government income, increase total investment and make most sectors prosperous with the exception of energy industries.
Journal: Applied Economics
Pages: 389-406
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1316826
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316826
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:389-406




Template-Type: ReDIF-Article 1.0
Author-Name: Xu Zhang
Author-X-Name-First: Xu
Author-X-Name-Last: Zhang
Author-Name: Xiaoxing Liu
Author-X-Name-First: Xiaoxing
Author-X-Name-Last: Liu
Author-Name: Jianqin Hang
Author-X-Name-First: Jianqin
Author-X-Name-Last: Hang
Author-Name: Dengbao Yao
Author-X-Name-First: Dengbao
Author-X-Name-Last: Yao
Title: The dynamic causality between commodity prices, inflation and output in China: a bootstrap rolling window approach
Abstract: 
 In this article, we empirically study the time-varying bilateral causality between commodity prices, inflation and output in China. We first perform a series of parameter stability tests and find strong evidence of instability in the parameters estimated for Granger causality tests. We then use the bootstrap rolling window approach to test the causality and find that the causality from commodity prices to both inflation and output is time-varying in the entire sample period and asymmetric in different phases of the business cycle. We also find evidence of the causality from both inflation and output to commodity prices in certain sub-periods. Further discussion on the cost-price mechanism through which the economy fluctuates cyclically suggests that the dynamic causality between commodity prices and inflation contributes to understanding the nature of economic fluctuations and to forecasting economic crises. Overall, our results provide a new perspective to disentangle economic fluctuations.
Journal: Applied Economics
Pages: 407-425
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321835
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321835
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:407-425




Template-Type: ReDIF-Article 1.0
Author-Name: Shan Li
Author-X-Name-First: Shan
Author-X-Name-Last: Li
Title: Investment and interruption: effects of the US experience on the earnings of return migrants in Mexico
Abstract: 
 Migration is widely viewed as an investment in human capital. However, due to the imperfect transferability of skills and knowledge across countries, migration trips are also career interruptions, especially for return migrants who may meanwhile experience depreciation of home country-specific skills. This article demonstrates that migration experience increases return migrants’ earnings in the home country on the condition that the migration stay is sufficiently long and mostly uninterrupted. Employing the revised human capital earnings function, the empirical study shows that only a barely interrupted US experience longer than five years, regardless of the legal status of the migration trips, predicts higher earnings of male return migrants in Mexico than comparable non-migrants. Robust findings emerge controlling for unobserved individual \]acteristics or using instrumental variables to deal with the self-selection and endogeneity. Short migration stays in the US and frequent traveling provide return migrants no wage premium in Mexico.
Journal: Applied Economics
Pages: 426-440
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324616
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324616
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:426-440




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Zahra (Mila) Elmi
Author-X-Name-First: Zahra (Mila)
Author-X-Name-Last: Elmi
Author-Name: Omid Ranjbar
Author-X-Name-First: Omid
Author-X-Name-Last: Ranjbar
Title: Re-testing Prebisch–Singer hypothesis: new evidence using Fourier quantile unit root test
Abstract: 
 The Prebisch–Singer hypothesis in economics asserts that over time the relative price of primary goods relative to manufactured goods should experience a downward trend. To test the hypothesis, we must first establish the unit root properties of the relative price term and then regress the stationary series on a trend term. We use the quantile unit root test which allows for both smooth unknown numbers and the form of breaks in the trend function through a Fourier function to show that the relative price of 23 out of 24 primary goods is stationary. However, the Prebisch–Singer hypothesis is supported only in half of the primary commodities.
Journal: Applied Economics
Pages: 441-454
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1332751
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332751
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:441-454




Template-Type: ReDIF-Article 1.0
Author-Name: Panos Fousekis
Author-X-Name-First: Panos
Author-X-Name-Last: Fousekis
Author-Name: Emmanouil Trachanas
Author-X-Name-First: Emmanouil
Author-X-Name-Last: Trachanas
Title: Price transmission in the international skim milk powder markets
Abstract: 
 This article investigates the strength and the pattern of spatial price linkages in skimmed milk powder markets using monthly wholesale price data from three major producers and exporters (the U.S.A., the E.U., and Oceania) and the nonlinear autoregressive distributed lag model. The results suggest that prices in the three regions considered are linked with stable long-run relationships. The law of one price, however, does not hold. The dominant pattern of transmission in the long run is asymmetric involving positive price stocks to be transmitted with higher intensity compared to negative prices shocks; asymmetries in price transmission exist in the short run as well.
Journal: Applied Economics
Pages: 5233-5245
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173183
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173183
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5233-5245




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Jun Li
Author-X-Name-First: Jun
Author-X-Name-Last: Li
Title: Population and lifestyle trend changes in China: implications for environmental quality
Abstract: 
 Demographic changes have considerable impacts on a country’s long-term growth trajectory through the savings, consumption and labour market channels. Population changes, including ageing, migration and urbanization, as well as lifestyle shifts may affect growth for fast-growing countries like China. Rural population migrating to cities consumes more energy services and produces larger emissions since urban lifestyles are generally more energy- and carbon-intensive. Household structures also keep changing across the majority of Chinese cities. Migration and urbanization together drive China’s energy consumption, CO2 emissions upwards and environmental quality downwards if the current trend continues over time. It is, thus, necessary for China to draw useful lessons from experiences in other countries by reconciling population development and environmental changes. This study provides insights into the challenge of environmental sustainability, resulting jointly from population and lifestyle changes in China over the period 1978–2012. The empirical analysis generates empirical findings documenting that population changes and consumption behavioural changes contributed significantly to increased carbon emissions over the last three decades. The modelling results are highly relevant for policymakers who seek to adopt new policies to mitigate lifestyle change-driven environmental challenges that China has to cope with in the foreseeable future.
Journal: Applied Economics
Pages: 5246-5256
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173184
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173184
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5246-5256




Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Vargas
Author-X-Name-First: Miguel
Author-X-Name-Last: Vargas
Title: Tacit collusion in housing markets: the case of Santiago, Chile
Abstract: 
 In this article, using a detailed micro-database from Santiago, Chile, the potential existence of tacit collusion in housing markets is investigated. In order to perform the test, Santiago’s housing market is split into four different submarkets using hedonic price analysis and household’s socioeconomics characteristics. Then, using a GMM panel data model, regressions are run for each submarket, correlating industry’s markups with the aggregate level of activity. The main finding is that low and middle income submarkets present higher average markups and a pro-cyclical behaviour. This finding is consistent with a market where participants do not face capacity constraints and behave strategically to sustain tacit collusion during increasing demand periods.
Journal: Applied Economics
Pages: 5257-5275
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176111
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176111
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5257-5275




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Michael L. Polemis
Author-X-Name-First: Michael L.
Author-X-Name-Last: Polemis
Title: Competition and efficiency in the MENA banking region: a non-structural DEA approach
Abstract: 
 The goal of this article is to empirically assess the relationship between competition and efficiency in the banking sector of Middle East and North African (MENA) countries spanning the period 1997–2011. To measure the level of competition, the article estimates the non-structural indicator known as the H-statistic, while the level of bank efficiency is estimated through the nonparametric methodology of the Data Envelopment Analysis (DEA) and the Bootstrap Data Envelopment Analysis (BDEA), respectively. The empirical results are robust under six econometric methodologies, providing sufficient evidence for the presence of a one-way (negative) Granger causality, running from efficiency to competition. The empirical findings lead to the rejection of the ‘Efficient Structure Hypothesis’, implying that increases in competition do not precede increases in cost efficiency.
Journal: Applied Economics
Pages: 5276-5291
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176112
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176112
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5276-5291




Template-Type: ReDIF-Article 1.0
Author-Name: Masatomo Akita
Author-X-Name-First: Masatomo
Author-X-Name-Last: Akita
Author-Name: Yusuke Osaki
Author-X-Name-First: Yusuke
Author-X-Name-Last: Osaki
Title: Optimal penalty and accounting policy
Abstract: 
 This study considers risky investment projects under adverse selection and examines optimal penalties for erroneous auditing reports to maximize social welfare. These penalties give firms an incentive to choose accounting policies that maximize social welfare. We characterize the optimal penalties such that efficient firms choose an aggressive accounting policy and inefficient firms choose a conservative accounting policy.
Journal: Applied Economics
Pages: 5292-5299
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176113
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176113
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5292-5299




Template-Type: ReDIF-Article 1.0
Author-Name: Luciano Rodrigues
Author-X-Name-First: Luciano
Author-X-Name-Last: Rodrigues
Author-Name: Mirian Rumenos Piedade Bacchi
Author-X-Name-First: Mirian Rumenos Piedade
Author-X-Name-Last: Bacchi
Title: Light fuel demand and public policies in Brazil, 2003–2013
Abstract: 
 The main objective of this article is to evaluate determinants of demand for light fuels in Brazil between 2003 and 2013. Through a vector autoregression analysis, an effort was made to identify and quantify the impact of different economic variables and public policy measures adopted during this period on the surprising increase in energy consumption by Brazil’s light-vehicle fleet. The results suggest that demand for energy by the light-vehicle fleet was influenced by an increase in income, by a decrease in fuel prices associated with a policy designed to prevent increases in the price of gasoline from pushing the inflation rate up, by a higher availability of credit for buying vehicles, and by a drop in the real price of those goods, with emphasis on countercyclical measures to waive the tax on industrialized products levied on new vehicles during economic downturns in the automotive industry.
Journal: Applied Economics
Pages: 5300-5313
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176115
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176115
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5300-5313




Template-Type: ReDIF-Article 1.0
Author-Name: Katja Görlitz
Author-X-Name-First: Katja
Author-X-Name-Last: Görlitz
Author-Name: Christina Gravert
Author-X-Name-First: Christina
Author-X-Name-Last: Gravert
Title: The effects of the high school curriculum on school dropout
Abstract: 
 High school dropouts and their lower employment prospects are a major concern for developed countries. This article answers the question whether the high school curriculum has the potential to affect students’ dropout decision. Focusing on the curriculum is also motivated by the manifold curriculum reforms or reform initiatives worldwide. Using a quasi-experimental evaluation design, we identify the effects of a curriculum reform on students’ probability to drop out of high school in the short run, i.e. for the first three cohorts graduating under the new curriculum requirements. The reform increased the curriculum requirements in high school, for instance, by reducing the freedom of choice in course selection. The results show that high school dropout rates increased for males and females alike.
Journal: Applied Economics
Pages: 5314-5328
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176116
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176116
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5314-5328




Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Cheng Hung
Author-X-Name-First: Jui-Cheng
Author-X-Name-Last: Hung
Author-Name: Jung-Bin Su
Author-X-Name-First: Jung-Bin
Author-X-Name-Last: Su
Author-Name: Matthew C. Chang
Author-X-Name-First: Matthew C.
Author-X-Name-Last: Chang
Author-Name: Yi-Hsien Wang
Author-X-Name-First: Yi-Hsien
Author-X-Name-Last: Wang
Title: The impact of liquidity on portfolio value-at-risk forecasts
Abstract: 
 Historical crisis events have highlighted the insufficiency of Value-at-Risk (VaR) as a measure of market risk because such metric does not take liquidity into account. Unlike previous studies analyzing with only a single asset, we examine the impact of liquidity on computing VaR forecasts from a portfolio level. To this end, we use multivariate GARCH-t and GJR-GARCH-t models, as compared with univariate models, to seize the liquidity property embedded in individual stock returns and evaluate their accuracy and efficiency in computing VaR forecasts for portfolios with different liquidity levels.The empirical results indicate that computing portfolio VaR forecasts with multivariate models outperform the univariate models for full and subsample periods in terms of accuracy and efficiency evaluations, in particular for less-liquid portfolios. These results suggest the importance of liquidity in computing portfolio VaR forecasts. Ignorance of the impact of liquidity in computing portfolio VaR forecasts might result in inadequate coverage and insufficient market risk capital requirements.
Journal: Applied Economics
Pages: 242-259
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644442
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644442
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:242-259




Template-Type: ReDIF-Article 1.0
Author-Name: Tiago Neves Sequeira
Author-X-Name-First: Tiago Neves
Author-X-Name-Last: Sequeira
Author-Name: Pedro Cunha Neves
Author-X-Name-First: Pedro Cunha
Author-X-Name-Last: Neves
Title: Stepping on toes in the production of knowledge: a meta-regression analysis
Abstract: 
 Decreasing returns to scale in physical resources in the knowledge production function have been widely considered in the economic growth literature. However, given the heterogeneity of empirical results, it is difficult to assess its magnitude. We provide a meta-analysis of the value of the decreasing returns to physical resources in the knowledge production function (stepping-on-toes effect). This has important policy implications regarding the subsidization of R&D activities and policy measures to enable the diffusion of knowledge. We conclude that there is some evidence of publication bias. Moreover, the average effect size is quite small, around 0.2, which implies a high stepping-on-toes effect. This value tends to be higher when variables related to international linkages are present, resources allocated to R&D are measured by labour, the knowledge pool is proxied by population, and instrumental variable estimation techniques are employed. On the contrary, the average returns to scale estimate decreases when resources allocated to R&D are measured by population and when only rich countries are included in the sample.
Journal: Applied Economics
Pages: 260-274
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644447
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644447
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:260-274




Template-Type: ReDIF-Article 1.0
Author-Name: Ameet Kumar Banerjee
Author-X-Name-First: Ameet Kumar
Author-X-Name-Last: Banerjee
Author-Name: H. K. Pradhan
Author-X-Name-First: H. K.
Author-X-Name-Last: Pradhan
Author-Name: Trilochan Tripathy
Author-X-Name-First: Trilochan
Author-X-Name-Last: Tripathy
Author-Name: A. Kanagaraj
Author-X-Name-First: A.
Author-X-Name-Last: Kanagaraj
Title: Macroeconomic news surprises, volume and volatility relationship in index futures market
Abstract: 
 This paper examines the role of macroeconomic news surprises on returns volatility of Indian Index futures market. Empirical literature posits that news arrivals have an influential impact on asset returns and returns volatility. Consistent with this proposition, we have undertaken a comprehensive examination to understand the relationship between macroeconomic news releases, trading volume, and returns volatility in an emerging financial market like India. Using high-frequency data sampled at 1-minute interval along with a broader class of macroeconomic news, we found that macroeconomic news surprises significantly affect both returns volatility and trading volume and that the response of Index futures contract to macroeconomic news surprise is rather swift and significant. Further, there is evidence that several macroeconomic news surprises seemingly exhibit asymmetric impact on the Index futures contract.
Journal: Applied Economics
Pages: 275-287
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645277
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645277
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:275-287




Template-Type: ReDIF-Article 1.0
Author-Name: Ngoc Nguyen
Author-X-Name-First: Ngoc
Author-X-Name-Last: Nguyen
Author-Name: Charles Harvie
Author-X-Name-First: Charles
Author-X-Name-Last: Harvie
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Title: ASEAN income gap and the optimal exchange Rate Regime
Abstract: 
 This article investigates the optimal exchange rate regime in a group of ASEAN countries, which minimizes the adverse effects of foreign demand shocks on real output, the real exchange rate, price level and between-country income gap. Using a panel structural vector autoregressive model for small open economies, we show that the extent by which foreign demand shocks influences the between-country income gap depends on the exchange rate regime and the transmission channels through output, the price level and the real exchange rate. Our results show that a fixed exchange rate is better in insulating output and real exchange rates against adverse foreign demand shocks. Nevertheless, a flexible exchange rate regime achieves lower inflation and narrows the income gap across countries. Further, foreign demand shocks explain a larger portion of the forecast error variance of macroeconomic variables under a fixed than under a flexible exchange rate regime.
Journal: Applied Economics
Pages: 288-304
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645278
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645278
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:288-304




Template-Type: ReDIF-Article 1.0
Author-Name: Junwei Wang
Author-X-Name-First: Junwei
Author-X-Name-Last: Wang
Author-Name: Zhicheng Liang
Author-X-Name-First: Zhicheng
Author-X-Name-Last: Liang
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Title: Deviations between China’s and international gold price: role of fundamentals, contagion and financial shocks
Abstract: 
 China has been the world’s largest gold producer since 2007 and the world’s largest gold consumer since 2013. However, despite it being the second largest exchange-traded market in the world, gold price shows persistent volatility and deviations from the international gold price. This study explores the impact of fundamentals, global contagion and financial shocks on the gap between international and domestic gold price using an extended GARCH model. The empirical study shows that the exchange rate of renminbi plays an important role in moving the price gap. The global contagion factors associate more with the level of the price gap, not with the volatility; policy shocks do not present expected significant influence on the price gap. For black swan events, their impact on both level and volatility of the price gap is discernible.
Journal: Applied Economics
Pages: 305-316
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645279
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645279
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:305-316




Template-Type: ReDIF-Article 1.0
Author-Name: Ziming Liu
Author-X-Name-First: Ziming
Author-X-Name-Last: Liu
Author-Name: Lan Zhang
Author-X-Name-First: Lan
Author-X-Name-Last: Zhang
Author-Name: Jens Rommel
Author-X-Name-First: Jens
Author-X-Name-Last: Rommel
Author-Name: Shuyi Feng
Author-X-Name-First: Shuyi
Author-X-Name-Last: Feng
Title: Do land markets improve land-use efficiency? evidence from Jiangsu, China
Abstract: 
 Inefficient use of scarce and fragmented land challenges the sustainability of agriculture. Land markets may improve land-use efficiency. In recent years, China has employed various instruments to promote land markets. This paper investigates whether land markets affect households’ land-use efficiency, based on data from 1,202 farm households in Jiangsu Province. The measure of land-use efficiency was derived from a stochastic frontier production function, and a control function approach was employed to correct for selection bias. The results indicated that many households are using land inefficiently. While renting in land increases land-use efficiency, it is not affected by renting out land, implying that households are not giving up land for efficiency gains. We also provide suggestive evidence that the positive effect of renting in land results from abundant agricultural labour due to labour market failure.
Journal: Applied Economics
Pages: 317-330
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645286
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645286
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:317-330




Template-Type: ReDIF-Article 1.0
Author-Name: Saeid Karimi
Author-X-Name-First: Saeid
Author-X-Name-Last: Karimi
Title: The role of entrepreneurial passion in the formation of students’ entrepreneurial intentions
Abstract: 
 Entrepreneurial passion has been suggested as an entrepreneur’s central characteristic, theorized to affect a host of entrepreneurial behaviours. Considering the theory of planned behaviour (TPB), a conceptual model was developed and tested which integrated both cognitive (namely, subjective norms, attitudes toward perceived behavioural control and entrepreneurship) and emotional (namely, entrepreneurial passion) factors to determine their contributions to entrepreneurial intentions. This is a quantitative study using a self-report survey for data collection. The hypotheses were examined with 250 university students sample applying the partial least squares method. The results indicate a significant indirect relationship between entrepreneurial passion and entrepreneurial intentions via their cognitive antecedents (attitudes toward entrepreneurship and perceived behavioural control). The study contributes to the emerging research of entrepreneurial passion in the entrepreneurship field and heightens its role as a factor that should be taken into account to improve entrepreneurship education programs.
Journal: Applied Economics
Pages: 331-344
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645287
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645287
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:331-344




Template-Type: ReDIF-Article 1.0
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Author-Name: Nicole Jonker
Author-X-Name-First: Nicole
Author-X-Name-Last: Jonker
Title: Pension profile preferences: the influence of trust and expected expenses
Abstract: 
 This paper studies the influence of people’s expectations about expenses during retirement and trust in pension funds on preferences for different pension arrangements. Although most workers prefer a flat-rate annuity, many workers want to deviate from it. The most popular option is a high/low, annuity-based profile, followed by a partial lump sum payment. Workers who expect declining expenses during retirement are more likely to opt for a high/low annuity-based pension and/or a lump sum payment at retirement. Furthermore, workers and pensioners who do not trust their pension fund are more likely to prefer a lump sum over annuity-based arrangements.
Journal: Applied Economics
Pages: 1212-1231
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527010
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527010
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1212-1231




Template-Type: ReDIF-Article 1.0
Author-Name: Alan Duncan
Author-X-Name-First: Alan
Author-X-Name-Last: Duncan
Author-Name: Astghik Mavisakalyan
Author-X-Name-First: Astghik
Author-X-Name-Last: Mavisakalyan
Author-Name: Yashar Tarverdi
Author-X-Name-First: Yashar
Author-X-Name-Last: Tarverdi
Title: Self-assessed vs. statistical evidence of racial discrimination: the case of indigenous Australians
Abstract: 
 This paper provides new insights on the labour market discrimination faced by indigenous Australians one of the most disadvantaged indigenous populations in developed countries. Combining two large, nationally representative datasets, we decompose the employment gap between indigenous and non-indigenous populations as of 2014–2015, and show that differences in characteristics between the two groups account for only 43% of the employment gap for females, and 23% of the gap for males. We then demonstrate that statistical measures are positively related to discrimination reports of females and negatively related to discrimination reports of males. Our findings underscore the importance of improving transparency in employment processes for addressing the issue of disadvantage of racial minorities.
Journal: Applied Economics
Pages: 1232-1247
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527442
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527442
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1232-1247




Template-Type: ReDIF-Article 1.0
Author-Name: Klenio Barbosa
Author-X-Name-First: Klenio
Author-X-Name-Last: Barbosa
Author-Name: Seiji Fetter
Author-X-Name-First: Seiji
Author-X-Name-Last: Fetter
Author-Name: Bruno de Paula Rocha
Author-X-Name-First: Bruno de Paula
Author-X-Name-Last: Rocha
Title: An empirical procedure to evaluate monetary management under exogenous changes in the money supply
Abstract: 
 This article proposes an empirical procedure to evaluate central banks’ monetary management in a presence of exogenous changes in the money supply. Monetary shocks deviate the market interest rate from the target, and the monetary authority decides its optimal intervention in the money market, bearing in mind the benefits and costs of re-establishing its target interest rate. According to monetary management theory, typically a central bank will allow for variation in the interest rate within a range around the target interest rate, thereby intervening in the money market when the interest rate trends toward a point outside that range. In this context, we develop an empirical strategy to analyse central bank’s reactions to exogenous money changes by making a statistical comparison of the actual and the estimated intraday shift in the money supply. We also employ our method to test the reactions of the Brazilian Central Bank to liquidity shifts caused by changes in the Treasury Single Account (TSA) balance. Using different metrics of analysis, the applications of our procedure confirms the predictions of the optimal monetary management theory.
Journal: Applied Economics
Pages: 1248-1267
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527443
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527443
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1248-1267




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Bergholz
Author-X-Name-First: Christian
Author-X-Name-Last: Bergholz
Author-Name: Ivo Bischoff
Author-X-Name-First: Ivo
Author-X-Name-Last: Bischoff
Title: Citizens’ support for inter-municipal cooperation: evidence from a survey in the German state of Hesse
Abstract: 
 Inter-municipal cooperation (IMC) is often proposed as a politically feasible way by which rural municipalities can cope with intensified interregional competition and demographic change. We provide first evidence on citizens’ support for IMC using survey data from rural Germany. We find little evidence that citizens are more willing to support IMC in munici-palities that can – by the logic of economic theory – expect higher net benefits from IMC. Citizens’ support for IMC is primarily shaped by individual-level factors like the level of education, trust in local politicians and the degree of emotional attachment to the home mu-nicipality. Citizens’ beliefs regarding the economic and political consequences of IMC are found to have the largest marginal effect by far. Regressions predicting interpersonal differ-ences in these beliefs show that these beliefs have to be considered independent drivers of policy preferences. This result suggests that more research is needed to better understand the factors shaping citizens’ understanding of how economic policy works. This lack of under-standing applies to virtually all fields of economic policy.
Journal: Applied Economics
Pages: 1268-1283
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527444
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527444
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1268-1283




Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Renna
Author-X-Name-First: Francesco
Author-X-Name-Last: Renna
Author-Name: Amanda Weinstein
Author-X-Name-First: Amanda
Author-X-Name-Last: Weinstein
Title: The veteran wage differential
Abstract: 
 There is debate in the literature as to whether military service is rewarded in the economy and the extent to which veterans receive either a wage premium or penalty. In this paper, we take a new approach to this question by conducting a wage decomposition of the veteran wage differential and decomposing the wage distribution of veterans and civilians instead of focusing only on the standard wage gap analysis at the averages. We find the veteran wage differential is driven by observable factors such as education, occupation, and industry, but also by location choice, a factor that has been previously overlooked in the literature. At the average, we find white men experience a veteran penalty whereas black men and women experience a veteran premium consistent with the bridging hypothesis. Additionally, we find that as we move along the wage distribution for all demographic groups, the veteran premium tends to become a veteran penalty, even after accounting for selection into military service. However, once we account for selection, we find that the premium for veteran black men disappears.
Journal: Applied Economics
Pages: 1284-1302
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527445
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527445
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1284-1302




Template-Type: ReDIF-Article 1.0
Author-Name: Yajuan Li
Author-X-Name-First: Yajuan
Author-X-Name-Last: Li
Author-Name: Marco A. Palma
Author-X-Name-First: Marco A.
Author-X-Name-Last: Palma
Author-Name: Charles R. Hall
Author-X-Name-First: Charles R.
Author-X-Name-Last: Hall
Author-Name: Hayk Khachatryan
Author-X-Name-First: Hayk
Author-X-Name-Last: Khachatryan
Author-Name: Oral Capps
Author-X-Name-First: Oral
Author-X-Name-Last: Capps
Title: Measuring the effects of advertising on green industry sales: a generalized propensity score approach
Abstract: 
 This article estimates the effects of advertising expenditures on annual gross sales of green industry firms using a quasi-experimental framework. In order to account for potential selection bias, a generalized propensity score and a dose-response function are used to estimate advertising treatment effects. The method used allows us to investigate the relationship between the dose (advertising expenditures) and the response (firm sales). We use data from the National Green Industry Surveys of 2009 and 2014 to conduct the analysis. To further investigate potential heterogeneous advertising effects of the size of the firms, we separate the sample into small firms and large firms, according to their annual gross sales. The results indicate that the magnitude and shape of the response function depend on the size of the firm. For small firms, increasing advertising spending yields to higher sales within a range of advertising spending. Beyond this range, advertising spending increases do not impact sales any more. Thus, small firms’ management should carefully monitor advertising input. For large firms, on the other hand, the current evidence does not support a positive relationship between advertising spending and sales since the marginal treatment effect is insignificant almost over the entire range of adverting spending.
Journal: Applied Economics
Pages: 1303-1318
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527448
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527448
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1303-1318




Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Title: The long-run effect of aid on health: evidence from panel cointegration analysis
Abstract: 
 Although a major objective of aid donors is to improve health outcomes in recipient countries, there is relatively little research on whether aid to the health sector leads to improved health outcomes, and even less on the impact of total aid. This paper examines the relationship between total aid and population health using panel cointegration and causality techniques designed to deal with problems afflicting previous aid-health studies: spurious regressions, omitted variables, endogeneity, cross-sectional dependence, and parameter heterogeneity. The main results are: (i) aid has, on average, a small but negative long-run effect on health, (ii) while the long-run (or trend) effect of aid on health is negative, the short-run (temporary) effect of aid on health is positive, (iii) causality runs in only one direction, from aid to health, and (iv) aid worsens health mainly in sub-Saharan countries, but has a positive, albeit statistically insignificant, long-run impact on health in Latin American and Caribbean countries and in countries with negative values of net ODA.
Journal: Applied Economics
Pages: 1319-1338
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527449
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527449
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1319-1338




Template-Type: ReDIF-Article 1.0
Author-Name: Liangliang He
Author-X-Name-First: Liangliang
Author-X-Name-Last: He
Author-Name: Lei Chen
Author-X-Name-First: Lei
Author-X-Name-Last: Chen
Author-Name: Frank Hong Liu
Author-X-Name-First: Frank Hong
Author-X-Name-Last: Liu
Title: Banking reforms, performance and risk in China
Abstract: 
 We investigate the impact of the banking reform started from 2005 on ownership structures in China on commercial banks’ profitability, efficiency and risk over the period 2000–2012, providing comprehensive evidence on the impact of banking reform in China. We find that banks on average tend to have higher profitability, lower risk and lower efficiency after the reforms, and the results are robust with our difference-in-difference approach. Our results also show that the Big 5 state-owned banks (SOCB) underperform banks with other types of ownership when risk is measured by non-performing loans (NPLs) over the entire study period but tend to have fewer NPLs than other banks during the post-reform period. Our results provide some supporting evidence on the ongoing banking reforms in China, suggesting that attracting strategic foreign investors and listing SOCBs on stock exchanges appear to be effective ways to help SOCBs deal with the problem of NPLs and manage their risk.
Journal: Applied Economics
Pages: 3995-4012
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273501
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273501
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:3995-4012




Template-Type: ReDIF-Article 1.0
Author-Name: V. Vandenberghe
Author-X-Name-First: V.
Author-X-Name-Last: Vandenberghe
Title: The productivity challenge. What to expect from better-quality labour and capital inputs?
Abstract: 
 The aim of this article is to develop and implement an analytical framework assessing whether better-quality inputs, via a rise of TFP, could compensate an ageing-induced slowing of economic growth. Here ‘better-quality’ means more educated and older/more experienced workforces; and also better-quality capital proxied by its ICT content. Economic theory predicts that these trends should raise TFP. To assess these predictions, we use EU-KLEMS data, with information on the age/education mix of the workforce, as well as the importance on ICT in total capital, for 34 industries within 16 OECD countries, between 1970 and 2005. We generalize the Hellerstein–Neumark labour-quality index method to simultaneously capture workers’ age/experience or education contribution to TFP growth, alongside that of ICT. The conclusion of the article is that the quality of inputs matters for TFP. We find robust microeconometric evidence that better-educated and older/more experienced workers are more productive than their less-educated and younger/less-experienced peers. Also, ICT capital turns out to be more productive than other forms of capital. And when used in a growth accounting exercise covering the 1995–2005 period, these estimates suggest that up to 40% of the recorded TFP growth could be ascribed to the rising quality of inputs.
Journal: Applied Economics
Pages: 4013-4025
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273504
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273504
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4013-4025




Template-Type: ReDIF-Article 1.0
Author-Name: José Fajardo
Author-X-Name-First: José
Author-X-Name-Last: Fajardo
Title: A new factor to explain implied volatility smirk
Abstract: 
 In this article, we find empirical evidence of a new smirk factor, obtained from the jump structure of the risk neutral distribution of the underlying Lévy process. As an application we show how to price a barrier style contract.
Journal: Applied Economics
Pages: 4026-4034
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273505
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273505
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4026-4034




Template-Type: ReDIF-Article 1.0
Author-Name: Raphaël Homayoun Boroumand
Author-X-Name-First: Raphaël Homayoun
Author-X-Name-Last: Boroumand
Author-Name: Stéphane Goutte
Author-X-Name-First: Stéphane
Author-X-Name-Last: Goutte
Author-Name: Simon Porcher
Author-X-Name-First: Simon
Author-X-Name-Last: Porcher
Author-Name: Thomas Porcher
Author-X-Name-First: Thomas
Author-X-Name-Last: Porcher
Title: Jumps and volatility dynamics in agricultural commodity spot prices
Abstract: 
 The spot commodities market exhibits both extreme volatility and price spikes, which lead to heavy-tailed distributions of price change and autocorrelation. This article uses various Lévy jump models to capture these features in a panel of agricultural commodities observed between January 1990 and February 2014. The results show that Levy jump models outperform the continuous Gaussian model. Our results prove that assuming a constant volatility or even a deterministic volatility and drift structure of agricultural commodity spot prices is not realistic and is less efficient than the stochastic assumption. The findings demonstrate an interesting correlation between volatility and jumps for a given commodity i, but no relationship between the volatility of commodity i and the probability of jumps of commodity j.
Journal: Applied Economics
Pages: 4035-4054
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273507
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273507
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4035-4054




Template-Type: ReDIF-Article 1.0
Author-Name: José M. Belbute
Author-X-Name-First: José M.
Author-X-Name-Last: Belbute
Author-Name: Alfredo M. Pereira
Author-X-Name-First: Alfredo M.
Author-X-Name-Last: Pereira
Title: Do global CO emissions from fossil-fuel consumption exhibit long memory? a fractional-integration analysis
Abstract: 
 In this article we use an autoregressive fractionally integrated moving average approach to measure the degree of fractional integration of aggregate world CO2 emissions and its five components – coal, oil, gas, cement, and gas flaring. We find that all variables are stationary and mean reverting, but exhibit long-term memory. Our results suggest that both coal and oil combustion emissions have the weakest degree of long-range dependence, while emissions from gas and gas flaring have the strongest. With evidence of long memory, we conclude that transitory policy shocks are likely to have long-lasting effects, but not permanent effects. Accordingly, permanent effects on CO2 emissions require a more permanent policy stance. In this context, if one were to rely only on testing for stationarity and non-stationarity, one would likely conclude in favour of non-stationarity, and therefore that even transitory policy shocks have permanent effects. Our fractional-integration analysis highlights that this is not the case.
Journal: Applied Economics
Pages: 4055-4070
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273508
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273508
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4055-4070




Template-Type: ReDIF-Article 1.0
Author-Name: Shang Wu
Author-X-Name-First: Shang
Author-X-Name-Last: Wu
Author-Name: Jenna Toussaint
Author-X-Name-First: Jenna
Author-X-Name-Last: Toussaint
Author-Name: Kent D. Messer
Author-X-Name-First: Kent D.
Author-X-Name-Last: Messer
Title: Maximizing benefits in project selection: a hybrid approach
Abstract: 
 Charitable foundations and government programmes should endeavour to allocate their limited resources to best serve their constituents. Yet, mathematical programming techniques are rarely used despite overwhelming evidence of their superiority in selecting projects that yield higher levels of total benefits. We present a novel ‘hybrid selection model’ that combines binary linear programming and heuristic rank-based models applied to two case studies. The first case focuses on providing services to women and shows a hybrid model would have selected the top three ‘signature’ projects and maintained an above-average overall project benefit while securing a 180% improvement in the number of projects funded, a 66% improvement in the number of women served and a 132% improvement in the total benefit achieved. In the second case, we apply the hybrid approach to data from the US government’s largest forest preservation programme and demonstrate that the hybrid approach could allow the programme to select up to 11 top-scoring projects while still achieving a 97% gain in the total overall benefit compared to their traditional method. These case studies show that the hybrid approach has the potential to be applied in a variety of settings and improve how foundations and programmes achieve their goals.
Journal: Applied Economics
Pages: 4071-4082
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1276267
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276267
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4071-4082




Template-Type: ReDIF-Article 1.0
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Author-Name: Benoît Sévi
Author-X-Name-First: Benoît
Author-X-Name-Last: Sévi
Author-Name: Bo Sjö
Author-X-Name-First: Bo
Author-X-Name-Last: Sjö
Author-Name: Gazi Salah Uddin
Author-X-Name-First: Gazi Salah
Author-X-Name-Last: Uddin
Title: The role of trade openness and investment in examining the energy-growth-pollution nexus: empirical evidence for China and India
Abstract: 
 Most of the existing literature dealing with the relationship between carbon emissions, energy consumption and economic growth either suffers from ignoring relevant variables such as trade openness or investment, or suffers from using econometric methods that are unable to distinguish between short- and long-term causality and are not robust to the degree of integration of time series used for the analysis. This article suggests using the autoregressive distributed lag approach along with additional explanatory variables such as measures of trade and investment to shed a new light on the link between emissions, energy consumption and income in the two largest and energy-intensive developing economies: China and India. Our results, over the 1971–2009 period, provide evidence that investment plays a major role in shaping the relationship between carbon emissions, energy consumption and income in China while this is not the case in India. Furthermore, trade openness is found to play a key function in the short term in China but does not contribute to the emissions-energy-growth scenario in India.
Journal: Applied Economics
Pages: 4083-4098
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1276268
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276268
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4083-4098




Template-Type: ReDIF-Article 1.0
Author-Name: Elie Bouri
Author-X-Name-First: Elie
Author-X-Name-Last: Bouri
Author-Name: Mahamitra Das
Author-X-Name-First: Mahamitra
Author-X-Name-Last: Das
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Title: Spillovers between Bitcoin and other assets during bear and bull markets
Abstract: 
 This article contributes to the embryonic literature on the relations between Bitcoin and conventional investments by studying return and volatility spillovers between this largest cryptocurrency and four asset classes (equities, stocks, commodities, currencies and bonds) in bear and bull market conditions. We conducted empirical analyses based on a smooth transition VAR GARCH-in-mean model covering daily data from 19 July 2010 to 31 October 2017. We found significant evidence that Bitcoin returns are related quite closely to those of most of the other assets studies, particularly commodities, and therefore, the Bitcoin market is not isolated completely. The significance and sign of the spillovers exhibited some differences in the two market conditions and in the direction of the spillovers, with greater evidence that Bitcoin receives more volatility than it transmits. Our findings have implications for investors and fund managers who are considering Bitcoin as part of their investment strategies and for policymakers concerned about the vulnerability that Bitcoin represents to the stability of the global financial system.
Journal: Applied Economics
Pages: 5935-5949
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488075
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488075
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5935-5949




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Author-Name: Pengfei Wang
Author-X-Name-First: Pengfei
Author-X-Name-Last: Wang
Author-Name: Xiao Li
Author-X-Name-First: Xiao
Author-X-Name-Last: Li
Author-Name: Dehua Shen
Author-X-Name-First: Dehua
Author-X-Name-Last: Shen
Title: Some stylized facts of the cryptocurrency market
Abstract: 
 We examine the stylized facts of eight forms of cryptocurrencies representing almost 70% of cryptocurrency market capitalization. In particular, the empirical results show that (1) there exists heavy tails for all the returns of cryptocurrencies; (2) the autocorrelations for returns decay quickly, while the autocorrelations for absolute returns decay slowly; (3) returns of cryptocurrencies display strong volatility clustering and leverage effects; (4) Hurst exponent for volatility is more volatile than that of the returns, while they all suggest the long-range dependence phenomena; and (5) there exists power-law correlation between price and volume.
Journal: Applied Economics
Pages: 5950-5965
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488076
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488076
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5950-5965




Template-Type: ReDIF-Article 1.0
Author-Name: Renato A. Villano
Author-X-Name-First: Renato A.
Author-X-Name-Last: Villano
Author-Name: Carolyn-Dung T. T. Tran
Author-X-Name-First: Carolyn-Dung T. T.
Author-X-Name-Last: Tran
Title: Performance of private higher education institutions in Vietnam: evidence using DEA-based bootstrap directional distance approach with quasi-fixed inputs
Abstract: 
 Vietnam’s higher education has witnessed substantial improvements since the implementation of the Doi Moi (renovation) policy. One of the significant developments is the promotion of establishment and enhancement of the role of private institutions in national education systems. However, the quest to improve the overall performance of the private higher education institutions remains a big challenge for many stakeholders. We assess the performance of Vietnamese private universities using a data envelopment analysis–based bootstrap directional distance approach with quasi-fixed inputs. The results show that there was a large variation in the efficiency levels of private universities within and between academic years and between metropolitan and other private universities. Our empirical findings provide more insights for educational leaders and policy makers on the performance of private higher education institutions and the implications of privatization of the national higher education system.
Journal: Applied Economics
Pages: 5966-5978
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488077
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488077
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5966-5978




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Paula Macedo de Avellar
Author-X-Name-First: Ana Paula Macedo de
Author-X-Name-Last: Avellar
Author-Name: Marisa dos Reis Azevedo Botelho
Author-X-Name-First: Marisa dos Reis Azevedo
Author-X-Name-Last: Botelho
Title: Impact of innovation policies on small, medium and large Brazilian firms
Abstract: 
 This study comprises a comparative examination of the effects of innovation support programmes’ spend on innovative activities in small, medium and large Brazilian firms. The econometric methodology propensity score matching is used to assess the impacts of tax and financial incentives based on. Results show that innovation support programmes stimulate expenditure on innovative activities, especially financial incentives for the acquisition of machinery and equipment.
Journal: Applied Economics
Pages: 5979-5995
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489109
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489109
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5979-5995




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Gugler
Author-X-Name-First: Klaus
Author-X-Name-Last: Gugler
Author-Name: Evgeni Peev
Author-X-Name-First: Evgeni
Author-X-Name-Last: Peev
Title: The persistence of profits in banking: an international comparison
Abstract: 
 This article examines the dynamics of bank profitability in the USA, Germany, Great Britain, France, Italy and Switzerland over the period 1993–2014. We find long-run bank profit persistence in all six countries in the period before the financial crisis in 2008. Banks with large capital ratios are persistently more profitable, and there is little evidence of a link between bank size and the persistence of bank profits. Commercial (saving) banks are persistently more (less) profitable in four of the six countries. The effects of the financial crisis in 2008 differed dramatically across countries as well as across ownership types. While US banks experienced dramatic declines in the immediate aftermath of the crisis, they recovered much faster than their European counterparts and essentially retain their long run profit potential by the year 2014.
Journal: Applied Economics
Pages: 5996-6009
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489111
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489111
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5996-6009




Template-Type: ReDIF-Article 1.0
Author-Name: Suraj Kumar
Author-X-Name-First: Suraj
Author-X-Name-Last: Kumar
Author-Name: Krishna Prasanna
Author-X-Name-First: Krishna
Author-X-Name-Last: Prasanna
Title: Liquidity in Asian markets: Intensity of Regional and global linkages
Abstract: 
 This study investigates cross-market linkages and the intensity of liquidity spillovers across nine Asian markets and five developed markets during 2006 to 2016. Further, the study examines the contagion caused by recent global financial crisis and its impact on the market liquidity. The direction and intensity of spillovers has been measured using forecast error variance decomposition method as suggested by Diebold and Yilmaz (2012). Among the developed markets, the United States, Germany and the United Kingdom significantly affect liquidity changes in Asian countries like India, China, Singapore and Japan. The results revels that on average, each Asian market receives 7% spillover from the global markets and 16% from regional markets. During the financial crisis, the average regional spillover increased to 20% and the global spillover increased to 11%. Thus, in Asia, the regional spillover is higher than the global spillover. Our results support the demand side hypothesis and suggest that it is the trade and portfolio investments that drive the liquidity spillovers. Our findings have potential implications for international investors, policy makers and market regulators.
Journal: Applied Economics
Pages: 6010-6023
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489112
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489112
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:6010-6023




Template-Type: ReDIF-Article 1.0
Author-Name: Lixin Cai
Author-X-Name-First: Lixin
Author-X-Name-Last: Cai
Author-Name: Yong Jin
Author-X-Name-First: Yong
Author-X-Name-Last: Jin
Author-Name: Qiulin Qi
Author-X-Name-First: Qiulin
Author-X-Name-Last: Qi
Author-Name: Xin Xu
Author-X-Name-First: Xin
Author-X-Name-Last: Xu
Title: A comprehensive study on smart beta strategies in the A-share market
Abstract: 
 In this article, we explore how smart beta strategies are applied in the Chinese A-share market. Specifically, we empirically examine several popular smart beta strategies, including mean-variance optimization, minimum-variance portfolio, equal weighting, risk parity strategy, and fundamental indexation, and we do so using the Shanghai Stock Exchange (SSE) 50 index and SSE sector indices as our comparison benchmarks. We find that all smart beta strategies outperform these benchmarks from year 2006 to year 2015, and that all smart beta strategies outperform the SSE 50 index by an average of 2.57% per year. In turn, these strategies improve the Sharpe Ratio by 46.2% on average.
Journal: Applied Economics
Pages: 6024-6033
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489113
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489113
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:6024-6033




Template-Type: ReDIF-Article 1.0
Author-Name: Laura Vallejo-Torres
Author-X-Name-First: Laura
Author-X-Name-Last: Vallejo-Torres
Author-Name: Stephen Morris
Author-X-Name-First: Stephen
Author-X-Name-Last: Morris
Author-Name: Beatriz G. Lopez-Valcarcel
Author-X-Name-First: Beatriz G.
Author-X-Name-Last: Lopez-Valcarcel
Title: Obesity and perceived work discrimination in Spain
Abstract: 
 Obesity is increasingly becoming a source of discrimination in many domains of living, including at the workplace. In this study, we estimate obesity-related discrimination in work settings in Spain and explore its potential sources. We use data from the European Health Interview Survey conducted in 2009–2010. Our models control for a comprehensive set of demographic, socioeconomic, health, and work-related sickness characteristics. We run separate models for women and men, and stratify by type of occupation and by area obesity prevalence. Our results indicate that weight-related discrimination in work settings in Spain is concentrated among women with morbid obesity, particularly among those working in customer-facing jobs and living in areas with low-obesity prevalence. These findings emphasize the persistence of the gendered nature of obesity-related discrimination, and provide evidence of a form of induced statistical discrimination. Employers’ expectations of lower returns from obese workers in customer facing jobs might be driven by customers’ preferences caused by social stigma. Furthermore, the role of area-obesity prevalence highlights the impact of cultural social norms even within the same country.
Journal: Applied Economics
Pages: 3870-3884
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2017.1400654
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400654
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3870-3884




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Le Pape
Author-X-Name-First: Nicolas
Author-X-Name-Last: Le Pape
Author-Name: Yongying Wang
Author-X-Name-First: Yongying
Author-X-Name-Last: Wang
Title: Stakeholders’ relationships and product market competition
Abstract: 
 In this article, we study the relationships between main stakeholders (shareholders, consumers and employees) when firms are consumer oriented (CO) in the sense of caring about consumers’ interests in the objective function. We let these firms first bargain with labour union over their employees’ wages and then compete either in the quantity space (Cournot competition) or in the price space (Bertrand competition). Our model shows that taking care of the consumers’ interests when determining product market strategies may reverse the traditional ranking between Cournot and Bertrand equilibria. This implies that if shareholders in a CO firm can choose either a quantity or a price strategy, they will surprisingly choose the latter. Moreover, we show that the conflicting interests between main stakeholders are attenuated under Bertrand competition compared to Cournot competition.
Journal: Applied Economics
Pages: 3885-3898
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430342
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430342
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3885-3898




Template-Type: ReDIF-Article 1.0
Author-Name: Nafeesa Yunus
Author-X-Name-First: Nafeesa
Author-X-Name-Last: Yunus
Title: Transmission of shocks across global real estate and equity markets: An examination of the 2007–2008 housing crisis
Abstract: 
 This study analyses the impact of the 2007–2008 U.S. financial crisis on the structure of interdependence among several major global real estate and equity markets. Moreover, it performs a step-by-step comparative analysis to evaluate similarities and differences in the convergence patterns of global real estate markets vis-à-vis global equity markets. Long-run results indicate that global real estate markets were less integrated than global equity markets prior to the crisis. Since the crisis, however, both global real estate and global equity markets have become highly integrated with the U.S. real estate and equity markets, respectively, and have fully converged. Short-run analyses indicate that during the pre-crisis period, global real estate markets were highly exogenous and independent. In contrast, global equity markets were comparatively more interdependent with one another and more endogenous. After the crisis, however, both global real estate and equity markets reacted strongly to shocks emanating from the U.S. markets, although the impact of the U.S. real estate market on the global real estate market is more pronounced than the effect of the U.S. equity market on the global equity markets. Finally, the study shows that U.S. real estate and equity markets are the channels of transmission or the sources of trends that drive global markets over the long-run and the short-run.
Journal: Applied Economics
Pages: 3899-3922
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430343
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430343
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3899-3922




Template-Type: ReDIF-Article 1.0
Author-Name: José Da Fonseca
Author-X-Name-First: José
Author-X-Name-Last: Da Fonseca
Author-Name: Katja Ignatieva
Author-X-Name-First: Katja
Author-X-Name-Last: Ignatieva
Title: Volatility spillovers and connectedness among credit default swap sector indexes
Abstract: 
 This article studies volatility spill-over effects and market connectedness using daily data of credit default swap spreads for U.S. companies over a period from 2007 to 2012. We quantify volatility spillovers by means of an unconditional analysis performed using the entire sample, and a conditional analysis which estimates the model using a rolling window. As our database contains the global financial crisis (GFC), we are able to determine how volatility spillovers spread in the economy during the recent market turmoil. Our unconditional results confirm that the Financials sector was a main contributor to the overall market volatility along with the Consumer Goods, Consumer Services and Basic Materials sectors. The conditional analysis clearly identifies that the Financials was the major feeding sector of volatility spill-over effects, and that the market volatility was successively driven by Technology and Basic Materials over a rather short period of time, followed by Consumer Goods and Consumer Services over a prolonged period of time. Our results illustrate indirect linkages between the sectors that conveyed shocks during the GFC.
Journal: Applied Economics
Pages: 3923-3936
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430344
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430344
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3923-3936




Template-Type: ReDIF-Article 1.0
Author-Name: Lester Lusher
Author-X-Name-First: Lester
Author-X-Name-Last: Lusher
Author-Name: Chuan He
Author-X-Name-First: Chuan
Author-X-Name-Last: He
Author-Name: Stephen Fick
Author-X-Name-First: Stephen
Author-X-Name-Last: Fick
Title: Are professional basketball players reference-dependent?
Abstract: 
 Models with reference-dependent preferences suggest that agents exert considerable effort to avoid falling below a reference point and ‘losing’. We provide visual and statistical evidence that player performances in the National Basketball Association (NBA) bunch at salient, normatively extraneous round numbers. Using data on nearly three million shot attempts with precise ($$x$$x
, $$y$$y
) coordinates, we find that players improve free throw accuracy and attempt shots closer to the hoop when shooting for a round number. The results are strongest for players on home teams, suggesting that the reference-dependent enters preferences through an external, social evaluation channel.
Journal: Applied Economics
Pages: 3937-3948
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430345
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430345
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3937-3948




Template-Type: ReDIF-Article 1.0
Author-Name: Christos Alexakis
Author-X-Name-First: Christos
Author-X-Name-Last: Alexakis
Author-Name: Mark Cummins
Author-X-Name-First: Mark
Author-X-Name-Last: Cummins
Author-Name: Michael Dowling
Author-X-Name-First: Michael
Author-X-Name-Last: Dowling
Author-Name: Vasileios Pappas
Author-X-Name-First: Vasileios
Author-X-Name-Last: Pappas
Title: A high-frequency analysis of price resolution and pricing barriers in equities on the adoption of a new currency
Abstract: 
 We use ultra high frequency (trade by trade) data to demonstrate that equity price clustering and pricing predictability around psychologically important prices in Greece switches away from drachma-focused with the introduction of the euro, but does not immediately switch to euro-clustering. The change in trader price focus around the euro introduction addresses an open debate in the clustering literature on whether the presence of clustering is a bias related to the current prices or anchoring to past prices. Our findings of a decline in drachma clustering, but lack of switch to euro effects supports the case for clustering being a trading feature that is slow to transfer to new pricing regimes. A key advantage of the ultra high frequency dataset is we are also able to demonstrate the presence of psychological pricing barriers related to each currency that are not detectable in daily data.
Journal: Applied Economics
Pages: 3949-3965
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430347
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430347
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3949-3965




Template-Type: ReDIF-Article 1.0
Author-Name: Álvaro Escribano
Author-X-Name-First: Álvaro
Author-X-Name-Last: Escribano
Author-Name: M. Teresa Santos-Martín
Author-X-Name-First: M. Teresa
Author-X-Name-Last: Santos-Martín
Author-Name: Ana E. Sipols
Author-X-Name-First: Ana E.
Author-X-Name-Last: Sipols
Title: A new Cramer-Von Misses cointegration test with application to environmental Kuznets curve
Abstract: 
 This article introduces a new Cramer-Von Misses (CVM) cointegration test robust to nonlinearities. We characterize nonlinear cointegration in terms of a nonlinear moving-average filter (high pass filter) of a matrix based on permutation matrices on the discrepancy of empirical distributions. A Cramer-Von Misses (CVM) test statistic is proposed for testing the null hypothesis of two independent random walks against a broad range of cointegrating alternatives with monotonic nonlinearities and level shifts in the cointegration relationship. We derive the asymptotic distribution of this induced-order Cramer-Von Misses (CVM) cointegration test. This new non-parametric test statistic has two important properties: the invariance to monotonic transformations of the series and the robustness for the presence of several parameter shifts or structural changes. We analyse the small sample properties of this test by Monte Carlo simulations and evaluate the power of the test. Finally, this CVM test is applied to the analysis of long run environmental Kuznets curve which relates economic growth and pollution. In particular, we consider a nonlinear cointegration between gross domestic product (GDP) and CO2 emissions. Our new CVM test is able to find evidence of cointegration while classical single equation cointegration tests are not.
Journal: Applied Economics
Pages: 3966-3978
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430348
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430348
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3966-3978




Template-Type: ReDIF-Article 1.0
Author-Name: Iryna Topolyan
Author-X-Name-First: Iryna
Author-X-Name-Last: Topolyan
Author-Name: Xu Xu
Author-X-Name-First: Xu
Author-X-Name-Last: Xu
Title: Differential effects of mother’s and child’s postnatal WIC participation on breastfeeding
Abstract: 
 We evaluate the effect of postnatal participation in the Women, Infants, and Children (WIC) programme on breastfeeding decisions using the data from the IFPS II. We find that the infant’s WIC participation positively affects the hazard of discontinuing breastfeeding, both partial and exclusive (and is thus associated with abbreviated breastfeeding duration). No significant association is found between the mother’s participation and the hazards of stopping exclusive or partial breastfeeding. Such differential effects might be a result of the programme’s policy, according to which the infant, but not the mother needs to be enrolled to receive free formula.
Journal: Applied Economics
Pages: 2216-2225
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234702
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234702
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2216-2225




Template-Type: ReDIF-Article 1.0
Author-Name: Yihao Zhang
Author-X-Name-First: Yihao
Author-X-Name-Last: Zhang
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Author-Name: Yongji Guo
Author-X-Name-First: Yongji
Author-X-Name-Last: Guo
Title: The effects of haze pollution on stock performances: evidence from China
Abstract: 
 Haze pollution has become the most important environmental issue in China in recent years. Using the data of PM2.5 concentration and stocks of listed companies located in Beijing between 2010 and 2014, this article investigates the effects of haze pollution on stock performances. Empirical results indicate that haze pollution has significant negative effects on stock returns and significant positive effects on stock volatilities, through the channel of investors’ mood. Furthermore, the effects of haze pollution on stock returns emerge gradually and the effects of haze pollution on stock volatilities weaken gradually over time during a trading day.
Journal: Applied Economics
Pages: 2226-2237
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234703
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234703
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2226-2237




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaodong Chen
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Chen
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Author-Name: Kun Tian
Author-X-Name-First: Kun
Author-X-Name-Last: Tian
Author-Name: Peng Zhou
Author-X-Name-First: Peng
Author-X-Name-Last: Zhou
Title: Who provides the capital for Chinese growth: the public or the private sector?
Abstract: 
 We focus on the role of the government in the provision of investment in China, through the medium of a Dynamic Stochastic General Equilibrium model of the economy in which the form of the production function reflects this governmental role. Using indirect inference, we estimate and test for the elasticity of substitution between government and nongovernment capital in both Constant Elasticity of Substitution (CES) and Cobb–Douglas technologies. The results underscore the strong substitution relationship between government and nongovernment capital from 1949, supporting CES rather than the Cobb–Douglas technology. They also show that the orientation of public investment changed after the start of the ‘Socialist Market Economy’ in 1992: government capital became more complementary to nongovernment capital as it focused more on infrastructure and withdrew from industrial production, intervening only in times of crisis, for stabilization purposes, indirectly via the state banks.
Journal: Applied Economics
Pages: 2238-2252
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234704
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234704
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2238-2252




Template-Type: ReDIF-Article 1.0
Author-Name: Majed Barjas G. Alotaibi
Author-X-Name-First: Majed Barjas G.
Author-X-Name-Last: Alotaibi
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Title: The relationship between export market orientation and export performance: an empirical study
Abstract: 
 This article investigates the relationship between export market orientation and export performance in Saudi export firms. Questionnaire method was used to collect the data from managers of export firms with the mediating role of export strategy. The data were analysed using structural equation modelling (SEM) implemented using AMOS software. Results of SEM analysis showed that export market orientation has impact on export performance. The mediator variable export strategy was found to have partial mediation role in the relationship. This article joins the literature of international trade by adding the perspective of Saudi export firms. Managers of export firms can employ the study to support their firm towards the effect of market orientation on their performance.
Journal: Applied Economics
Pages: 2253-2258
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237743
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237743
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2253-2258




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Author-Name: Li Qin
Author-X-Name-First: Li
Author-X-Name-Last: Qin
Title: A new generalized volatility proxy via the stochastic volatility model
Abstract: 
 This article proposes power transformation of absolute returns as a new proxy of latent volatility in the stochastic model. We generalize absolute returns as a proxy for volatility in that we place no restriction on the power of absolute returns. An empirical investigation on the bias, mean square error and relative bias is carried out for the proposed proxy. Simulation results show that the new estimator exhibiting negligible bias appears to be more efficient than the unbiased estimator with high variance.
Journal: Applied Economics
Pages: 2259-2268
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237751
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237751
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2259-2268




Template-Type: ReDIF-Article 1.0
Author-Name: Xinpeng Xu
Author-X-Name-First: Xinpeng
Author-X-Name-Last: Xu
Author-Name: Jan P. Voon
Author-X-Name-First: Jan P.
Author-X-Name-Last: Voon
Author-Name: Yan Shang
Author-X-Name-First: Yan
Author-X-Name-Last: Shang
Title: Unbundling institutional determinants of multinational investments
Abstract: 
 Previous studies often examined how a broad-based institution affects foreign direct investment (FDI) flows across countries. However, analysis of differential impacts of two or more constituent institutions within a broad-based institution appears to be more useful for policy decision-making. There is a paucity of studies on how constituent institutions within a broad measure of institution affect FDI across countries. Our article constitutes the first attempt in bridging this gap. In this article, we examine the relative effects of property rights institution (PI) and contracting institution (CI) on investment flows. Our results show that PI is much more important than CI in determining the cross-border flows of FDI and affiliate sales. Moreover, PI is found to be more important for FDI than for affiliate sales, indicating that final goods are less of a concern for being expropriated by governments and powerful elites than capital goods. Through unbundling a broad-based institution and examining how the constituent institutions affect investments flows, our article provides practical location decisions for investments in FDI, mergers and acquisitions (M&amp;A) and affiliate sales.
Journal: Applied Economics
Pages: 2269-2285
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237754
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237754
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2269-2285




Template-Type: ReDIF-Article 1.0
Author-Name: Ramzi Benkraiem
Author-X-Name-First: Ramzi
Author-X-Name-Last: Benkraiem
Author-Name: Mondher Bouattour
Author-X-Name-First: Mondher
Author-X-Name-Last: Bouattour
Author-Name: Anthony Miloudi
Author-X-Name-First: Anthony
Author-X-Name-Last: Miloudi
Author-Name: Ludovic Vigneron
Author-X-Name-First: Ludovic
Author-X-Name-Last: Vigneron
Title: Corporate leverage and the terms of employment: evidence from French small businesses before and during the global crisis
Abstract: 
 Despite the particular importance of corporate leverage and human capital for small businesses, little is surprisingly known about the relationship between these two factors for this category of firms. Accordingly, this article tries to fill this gap by investigating the relationship between leverage and human capital examined through the investment in employee-related expenditure. The analysis focuses on a sample of French listed small businesses before and during the recent global crisis. The empirical findings show that leverage serves as a monitoring mechanism of corporate managers prone to over or underinvest in employee-related expenditure to obtain private benefits. Due notably to the availability of debt, this monitoring is more effective before the crisis period, especially for low growth firms. Overall, these results provide support to the theory that leverage has a disciplining role. Simultaneously, they lead to moderate the strength of this role according to the global crisis. Thus, they should provide useful insights for academics, regulators, managers and credit institutions.
Journal: Applied Economics
Pages: 2286-2297
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237755
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237755
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2286-2297




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim Idi
Author-X-Name-Last: Cheffou
Title: Toward a new deal for Saudi Arabia: oil or Islamic stock market investment?
Abstract: 
 Amid the ongoing national development programme of Saudi Arabia, Saudi Vision 2030, a large trade openness plan to reduce Saudi Arabia’s dependence on oil and to diversify its economy is announced. This study investigates whether or not the related diversification option through openness towards the Islamic stock market would benefit Saudi Arabia’s economy. To this end, we consider data on oil price and Islamic stock investment, evaluate their interactions through vector autoregressive modelling and estimate the impulse response functions. Further, we perform portfolio simulations and measure further diversification benefits. First, we find that the risk of the economy’s dependency on the crude oil industry is not rejected, given the recent strong deterioration of oil returns. Second, the portfolio simulations highlight that the consideration of investment in Islamic stock shares not only generates diversification benefits but also provides a portfolio with the highest returns and lowest financial risk, for which we compute the optimal composition. Third, the analysis of the impulse response functions shows that the investment in the Islamic stock market in Saudi Arabia implies positive effects on the oil industry, which is a priori favourable to the recent challenge of undertaking the national development programme, Saudi Vision 2030.
Journal: Applied Economics
Pages: 6355-6363
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486018
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486018
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6355-6363




Template-Type: ReDIF-Article 1.0
Author-Name: Jamel Saadaoui
Author-X-Name-First: Jamel
Author-X-Name-Last: Saadaoui
Title: Internal Devaluations and Equilibrium Exchange Rates: new evidences and perspectives for the EMU
Abstract: 
 From the onset of the euro crisis to the Brexit vote, we have witnessed impressive reductions of current account imbalances in peripheral countries of the euro area. These reductions can be the result of either a compression of internal demand or an improvement in external competitiveness. In this paper, we compute exchange rate misalignments within the euro area to assess whether peripheral countries have managed to improve their external competitiveness. After controlling for the reduction of business cycle synchronization within the EMU, we find that peripheral countries have managed to reduce their exchange rate misalignments thanks to internal devaluations. To some extent, these favourable evolutions reflect improvements in external competitiveness. Nevertheless, these gains could only be temporary if peripheral countries do not improve their non-price competitiveness, their trade structures and their international specializations in the long run.Abbreviations: EMU, European Monetary Union; FEER, Fundamental Equilibrium Exchange Rate; SMIM, Symmetric Matrix Inversion Method; BEER, Behavioural Equilibrium Exchange Rate; PPP, Purchasing Parity Power; OCI, Own Country Included; IMF, International Monetary Fund; OECD, Organisation for Economic Co-operation and Development; NIESR, National Institute of Economic and Social Research.
Journal: Applied Economics
Pages: 6364-6381
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486019
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486019
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6364-6381




Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Zeuli
Author-X-Name-First: Marcelo
Author-X-Name-Last: Zeuli
Author-Name: André Carvalhal
Author-X-Name-First: André
Author-X-Name-Last: Carvalhal
Title: Backtesting Basel III: evaluating the market risk of past crises through the current regulation
Abstract: 
 Are the recommendations from the Bank for International Settlements (BIS) effective to a broad set of financial crises? We submitted two of the main Basel III recommendations for market risk to a back test: the capital requirements and the Value at Risk (VaR) methodology that includes the BIS’s Stressed VaR. We tested the main Brazilian currency exchange (U.S. Dollar to Brazilian Reais) and currency exchange swaps contracts through volatility-based VaR methodologies in the period that comprises the so-called Brazilian confidence crisis, which occurred in the second half of 2002.While the Stressed VaR revealed inapplicable, due to historical data shortage, the capital requirements level appeared innocuous, due to the high levels of daily volatility – daily oscillation limits may have a significant role on crisis mitigation. To circumvent the lack of either historical information or optimal window for stress patterns, we suggest to calibrate the Stressed VaR or the recently announced Expected Shortfall with a historical VIX (Volatility Index, Chicago Board Options Exchange), working as a volatility scale. We suggest modelling with other densities, apart from the BIS recommended standard normal.
Journal: Applied Economics
Pages: 6382-6396
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486020
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486020
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6382-6396




Template-Type: ReDIF-Article 1.0
Author-Name: Attila Ceffer
Author-X-Name-First: Attila
Author-X-Name-Last: Ceffer
Author-Name: Norbert Fogarasi
Author-X-Name-First: Norbert
Author-X-Name-Last: Fogarasi
Author-Name: Janos Levendovszky
Author-X-Name-First: Janos
Author-X-Name-Last: Levendovszky
Title: Trading by estimating the quantized forward distribution
Abstract: 
 In this article, a novel algorithm is developed for electronic trading on financial time series. The new method uses quantization and volatility information together with feedforward neural networks for achieving high-frequency trading (HFT). The proposed procedures are based on estimating the Forward Conditional Probability Distribution (FCPD) of the quantized return values. From past samples, the conditional expected value can be learned, from which FCPD can be obtained by using a special encoding scheme. Based on this estimation, a trading signal is triggered if the probability of price change becomes significant as measured by a quadratic criterion. Due to the encoding scheme and quantization, the complexity of learning and estimation has been reduced for HFT. Extensive numerical analysis has been performed on financial time series and the new method has proven to be profitable on mid-prices. In order to beat the secondary effects, we focus on the most liquid assets, on which we managed to achieve positive profits.
Journal: Applied Economics
Pages: 6397-6405
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486021
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486021
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6397-6405




Template-Type: ReDIF-Article 1.0
Author-Name: Gilles Dufrénot
Author-X-Name-First: Gilles
Author-X-Name-Last: Dufrénot
Author-Name: Anne-Charlotte Paret
Author-X-Name-First: Anne-Charlotte
Author-X-Name-Last: Paret
Title: Sovereign debt in emerging market countries: not all of them are serial defaulters
Abstract: 
 Avoiding to assign emerging market countries a ‘typical’ behaviour, this article considers the heterogeneity across them and through time to predict their sovereign default episodes. Moreover, it focuses on the imbalance between defaulted debt and GDP. For the first time, we use a panel nonlinear regime-switching model whose explanatory factors have a different impact on sovereign default, depending on the regime the country belongs to. We mitigate some common views of the literature (in particular the ‘serial default’ theory) and identify countries deserving to be monitored carefully, because of a higher exposure to sovereign default risk.Abbreviation: CRAG : Credit Rating Assessment Group; EMBI: Emerging Market Bond Index; FSI: Financial Stress Index; GDP: Gross Domestic Product; GFC: Global Financial Cycle; GTD: Gonzalez, Teräsvirta, and V. Dijk; IMF: International Monetary Fund; LM: Lagrange Multiplier; PSTR: Panel Smooth Transition Regression; PTR: Panel Threshold Regression; STAR: Smooth Transition Auto Regressive model; US: United States; VIX: Volatility Index
Journal: Applied Economics
Pages: 6406-6443
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486022
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486022
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6406-6443




Template-Type: ReDIF-Article 1.0
Author-Name: Asem Alhomaidi
Author-X-Name-First: Asem
Author-X-Name-Last: Alhomaidi
Author-Name: M. Kabir Hassan
Author-X-Name-First: M. Kabir
Author-X-Name-Last: Hassan
Author-Name: Duygu Zirek
Author-X-Name-First: Duygu
Author-X-Name-Last: Zirek
Author-Name: Abdulrahman Alhassan
Author-X-Name-First: Abdulrahman
Author-X-Name-Last: Alhassan
Title: Does an Islamic label cause stock price comovements and commonality in liquidity?
Abstract: 
 In this article, we examine the effects of shared beliefs and the personal preferences of individual investors on their trading and investment decisions. We expect that the process of classifying stocks into Sharia-compliant (Islamic) and non-Sharia-compliant (conventional) has an effect on the investibility and acceptance of the stocks especially by unsophisticated or individual investors. The wider acceptance of Islamic stocks among individual investors promotes and facilitates the circulation of firm-specific information among certain groups of investors. Our results indicate that stock classification has an effect on stock price comovements through increased stock trading correlation among the groups of Islamic investors. The commonality in preferences among holders of Islamic stocks generates commonality in trading activity and in stock liquidity. We find that classifying a stock as an Islamic stock increases its price comovement with other Islamic stocks and also increases its commonality in liquidity.
Journal: Applied Economics
Pages: 6444-6457
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486023
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486023
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6444-6457




Template-Type: ReDIF-Article 1.0
Author-Name: Georges Prat
Author-X-Name-First: Georges
Author-X-Name-Last: Prat
Author-Name: Remzi Uctum
Author-X-Name-First: Remzi
Author-X-Name-Last: Uctum
Title: Do markets learn to rationally expect US interest rates? An anchoring approach
Abstract: 
 We propose an augmented and dynamic forecast anchoring model to examine whether a group of rational forecasters coexists with or emerges besides a group of forecasters employing heuristic rules. This model is consistent with the economically rational expectations theory. Using experts’ 3-month and 10-year Treasury bill rate survey expectations at short and long horizons, we find that aggregate expectations fail to exhibit a learning process towards rationality. While forecasters essentially anchor their judgements to heuristics, a small proportion of agents rationally forecast the short-term interest rate, possibly due to Federal Reserve’s transparency practice in the conduct of monetary policy and forward guidance at the zero lower bound.
Journal: Applied Economics
Pages: 6458-6480
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486024
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486024
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6458-6480




Template-Type: ReDIF-Article 1.0
Author-Name: Evangelos Salachas
Author-X-Name-First: Evangelos
Author-X-Name-Last: Salachas
Author-Name: Nikiforos T. Laopodis
Author-X-Name-First: Nikiforos T.
Author-X-Name-Last: Laopodis
Author-Name: Georgios P. Kouretas
Author-X-Name-First: Georgios P.
Author-X-Name-Last: Kouretas
Title: Assessing monetary policies in the Eurozone, U.S., U.K. and Japan: new evidence from the post-crisis period
Abstract: 
 The global financial crisis of 2007 changed the way central banks implement monetary policies. This article examines the transmission of both conventional and unconventional monetary policies for the Eurozone, the U.S., the U.K. and Japan. We additionally study the impact of quantitative easing on financial stability and real economic activity. Our results suggest that conventional monetary policy pass-through channels were distorted significantly in the post-crisis period. We further argue that quantitative easing reduced the long-term rates and averted a further downturn in economic activity. Specifically, the series of central banks quantitative easing contributed to the stimulation of economic activity and restored the traditional financial markets’ function.
Journal: Applied Economics
Pages: 6481-6500
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486026
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486026
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6481-6500




Template-Type: ReDIF-Article 1.0
Author-Name: Tam Trinh
Author-X-Name-First: Tam
Author-X-Name-Last: Trinh
Author-Name: Xuan Nguyen
Author-X-Name-First: Xuan
Author-X-Name-Last: Nguyen
Author-Name: Pasquale Sgro
Author-X-Name-First: Pasquale
Author-X-Name-Last: Sgro
Title: Determinants of non-life insurance expenditure in developed and developing countries: an empirical investigation
Abstract: 
 The determinants of non-life insurance expenditure in a panel data set covering 36 developed countries and 31 developing countries for the period 2000–2011 are analysed. Results of our instrumental variable analysis indicate that economic freedom, income, bank development, urbanization, culture and law systems are the key drivers of the non-life insurance expenditure across countries. However, their impacts differ significantly between the groups of developed and developing countries, suggesting that the heterogeneity among countries in terms of the level of development plays an important role. The global financial crisis is also found to influence the direction of those effects, especially in developed countries. The article yields useful policy and economic implications for governments and multinational non-life insurance companies with regard to the development of the non-life insurance sector, an important engine for economic growth and prosperity.
Journal: Applied Economics
Pages: 5639-5653
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181834
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181834
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5639-5653




Template-Type: ReDIF-Article 1.0
Author-Name: Vadim Kaushanskiy
Author-X-Name-First: Vadim
Author-X-Name-Last: Kaushanskiy
Author-Name: Victor Lapshin
Author-X-Name-First: Victor
Author-X-Name-Last: Lapshin
Title: A nonparametric method for term structure fitting with automatic smoothing
Abstract: 
 We present a nonparametric method for fitting the term structure of interest rates from bond prices. Our method is a variant of the smoothing spline approach, but within our framework we are able to determine the smoothing coefficient automatically from data using the generalized cross-validation or maximum likelihood estimates. We present an effective numerical algorithm to simultaneously find the term structure and the optimal smoothing coefficient. Finally, we compare the proposed nonparametric fitting method with other parametric and nonparametric methods to find its superior performance. We find that existing term structure fitting methods perform well in liquid markets while illiquid markets present new challenges, which we address in this article.
Journal: Applied Economics
Pages: 5654-5666
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181835
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181835
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5654-5666




Template-Type: ReDIF-Article 1.0
Author-Name: Byung S. Min
Author-X-Name-First: Byung S.
Author-X-Name-Last: Min
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: How does leverage affect R&amp;D intensity and how does R&amp;D intensity impact on firm value in South Korea?
Abstract: 
 We examine how leverage affects corporate research and development (R&amp;D) intensity, as well as examine the impact of R&amp;D on firm value in South Korea, a country in which corporate-funded R&amp;D intensity is one of the highest in the world. Among our main results, we find that growth opportunities have a positive effect on R&amp;D intensity, while leverage has a negative effect on R&amp;D intensity. When leverage is at an extremely high level, the relationship between growth opportunities and R&amp;D intensity turns from positive to negative. Using instrumental variables, we find that R&amp;D generates an increase in firm value.
Journal: Applied Economics
Pages: 5667-5675
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181836
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181836
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5667-5675




Template-Type: ReDIF-Article 1.0
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Hong Zhao
Author-X-Name-First: Hong
Author-X-Name-Last: Zhao
Author-Name: Mingming Zhou
Author-X-Name-First: Mingming
Author-X-Name-Last: Zhou
Title: The effects of foreign strategic investors on business models in China’s commercial banks: does ownership structure matter?
Abstract: 
 Introducing foreign strategic investors (FSIs) is a vital step in the ownership reforms of China’s banking industry. Using China’s data from 1995 to 2014, we employ propensity score matching and difference-in-differences approaches to investigate the effects of FSIs on the business models of Chinese banks, including income structure and funding structure. We find that FSIs significantly influence income structure. The bank’s non-interest income (NII) share significantly rises after introducing FSIs. The higher ownership shares of FSIs are associated with the higher NII share. And the NII share has been increased when FSIs assign directors or senior managers to Chinese banks. We also report that the effects of FSIs on income structure are weaker in state-owned banks than those in other banks, and ownership concentration weakens the links between FSIs and income structure. Finally, this article shows that FSIs have no significant influence on funding structure. These findings will be informative and relevant to both policymakers and practitioners.
Journal: Applied Economics
Pages: 5676-5698
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184373
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184373
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5676-5698




Template-Type: ReDIF-Article 1.0
Author-Name: Ricky Kanabar
Author-X-Name-First: Ricky
Author-X-Name-Last: Kanabar
Author-Name: Peter Simmons
Author-X-Name-First: Peter
Author-X-Name-Last: Simmons
Title: To defer or not defer? UK state pension and work decisions in a lifecycle model
Abstract: 
 The UK state pension (which depends only on age) includes an option to defer take up which yields either a subsequent lump sum or higher weekly pension. We analyse the joint decisions on pension deferral and intertemporal labour supply/participation in a lifecycle setting. We show that deferral is purely a financial decision, but the impact of deferral on work decisions depends on preferences, wage rates, non-labour income and initial wealth. To exactly characterize this, we use a quasilinear utility function and provide calibrated simulations. We also discuss the choice between a lump sum or increased weekly pension.
Journal: Applied Economics
Pages: 5699-5716
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184374
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184374
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5699-5716




Template-Type: ReDIF-Article 1.0
Author-Name: Karen Maguire
Author-X-Name-First: Karen
Author-X-Name-Last: Maguire
Title: What’s powering wind? The effect of the U.S. state renewable energy policies on wind capacity (1994–2012)
Abstract: 
 As of 2012, 29 states had enacted a Renewable Portfolio Standard (RPS), while 37 states had at least one utility offering Green Power Purchasing (GPP) to their customers. The goal of both policies is to promote the adoption of clean, renewable energy. This article examines the influence of these polices on wind capacity across the United States from 1994–2012, a period of significant expansion of the wind generation market. The analysis focuses on wind because as compared with other modern renewable energy sources, wind is the only renewable energy source to make significant inroads into the U.S. electricity generation market. My findings indicate that while there have been significant increases in commercial scale wind generation capacity, neither RPS nor GPP programmes had a significant influence on within state wind capacity additions.
Journal: Applied Economics
Pages: 5717-5730
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184375
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184375
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5717-5730




Template-Type: ReDIF-Article 1.0
Author-Name: Aram Balagyozyan
Author-X-Name-First: Aram
Author-X-Name-Last: Balagyozyan
Author-Name: Esin Cakan
Author-X-Name-First: Esin
Author-X-Name-Last: Cakan
Title: Did large institutional investors flock into the technology herd? An empirical investigation using a vector Markov-switching model
Abstract: 
 This article investigates whether large non-bank institutional investors herded during the dot-com bubble of the 1990s. We use the vector Markov-switching model of Hamilton and Lin (1996) to analyse the technology stockholdings of 115 large institutional investors from 1980 to 2012. By imposing different restrictions on the elements of the transition probability matrix, we are able to test for various lead/lag scenarios that might have existed between the technology stockholding of each investor and that of the residual market. We find that only 17.4% of the investors in our sample herded during the dot-com bubble. Thus, during the dot-com bubble, herding among large institutional investors was not an especially widespread phenomenon. Among those investors that herded, 80% herded during the run-up, 10% during the collapse and 10% during both phases of the dot-com bubble. About 23% of all investors in our sample exited from the technology sector before the bubble collapsed. These results seem to support Abreu and Brunnermeier’s (2003) theory of bubbles and crashes.
Journal: Applied Economics
Pages: 5731-5747
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184376
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184376
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5731-5747




Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Dong Lee
Author-X-Name-First: Ki-Dong
Author-X-Name-Last: Lee
Author-Name: Seo-Hyeong Lee
Author-X-Name-First: Seo-Hyeong
Author-X-Name-Last: Lee
Author-Name: Jong-Il Choe
Author-X-Name-First: Jong-Il
Author-X-Name-Last: Choe
Title: State dependence, individual heterogeneity, and the choice of employment status: evidence from Korea
Abstract: 
 Focusing on the individual heterogeneity, this article examines the causes of an individual’s employment status choice and the extent of state dependence in the Korean labour market. We estimate a dynamic multinomial logit model using the panel data drawn from the first to fifteenth wave of the Korean Labour and Income Panel Study. The results suggest the presence of state dependence. Individual characteristics and growth background have a significant effect on the choice of employment status. Gender is still an important employment factor; males are more likely to be employed and this gender effect is highest for regular employment (RE). One’s educational attainment and age operate in opposite directions. That is, educational attainment (age) has a positive (negative) impact on the choice of a regular job and a negative (positive) impact on the choice of a non-regular job. Contrary to our expectations, a wealthy family background reduces the probability of individuals being wage workers, and raises the probability of them being unemployed. The barriers to RE are greater than for non-regular employment. These findings are of great importance for designing policies to effectively address unemployment and labour informality problems in Korea.
Journal: Applied Economics
Pages: 824-837
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1343447
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343447
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:824-837




Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Castaldo
Author-X-Name-First: Angelo
Author-X-Name-Last: Castaldo
Author-Name: Alessandro Fiorini
Author-X-Name-First: Alessandro
Author-X-Name-Last: Fiorini
Author-Name: Bernardo Maggi
Author-X-Name-First: Bernardo
Author-X-Name-Last: Maggi
Title: Measuring (in a time of crisis) the impact of broadband connections on economic growth: an OECD panel analysis
Abstract: 
 Technological innovation has always been considered a major stimulus for economic growth. High-speed internet access via broadband infrastructure has undergone rapid development since the end of the 1990s, thanks to the deployment of both fixed and mobile technologies. The present study investigates the impact of fixed broadband diffusion as a technological determinant of economic growth on the basis of a panel of 23 OECD countries over 15 years (1996–2010). The time horizon chosen is suitable for verification of the causal effect on growth of the transition from traditional copper to partially fibre networks. Through implementation of a dynamic panel by using the generalized method of moments (GMM) combined with an instrumental variable (IV) two-stage approach, we found a positive correlation between broadband diffusion and economic growth, even after controlling for countries initial endowment of information and communication technologies (ICT) and for the years of economic crisis. Our main finding provides evidence, through a continuous time interpretation of our estimations, of a quantitatively relevant relationship between broadband diffusion and economic dynamics in the short, medium and long runs. Our findings may be useful to policy makers in that they permit forecasting of the benefits of further transition from broadband to ultra-wide broadband networks.
Journal: Applied Economics
Pages: 838-854
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1343448
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343448
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:838-854




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Bilson Darku
Author-X-Name-First: Alexander Bilson
Author-X-Name-Last: Darku
Author-Name: Richard Yeboah
Author-X-Name-First: Richard
Author-X-Name-Last: Yeboah
Title: Economic openness and income growth in developing countries: a regional comparative analysis
Abstract: 
 This article examines and compares the openness–growth relationship between the high-performing Asian economies (HPAEs) and the rest of the developing world (Sub-Saharan Africa-SSA, South East Asia-SEA and Latin America and Caribbean-LAC). We applied the SYS-GMM estimator to a dynamic standard endogenous growth model which relates economic openness to real per capita income growth. A few key findings emerged from this study. First, economic openness led to increase in real per capita GDP growth in HPAEs and SSA, but not in LAC and SEA. Second, openness to trade accelerated income convergence among countries in SSA, SEA, and HPAEs, however, whereas foreign direct investment inflows accelerated income convergence only in SSA, it rather de-accelerated income convergence in HPAEs. Thirdly, the HPAEs recorded higher positive effect of openness on real per capita GDP growth than any of the other developing regions because they created sufficient stock of human capital that enhanced their absorptive capacity of imported advanced technology. They also created a more stable macroeconomic environment which consolidated the income growth gains from openness. The results of this study highlight the importance of the implementation of policies that are complementary to economic openness in promoting economic growth in the developing world.
Journal: Applied Economics
Pages: 855-869
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1343449
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343449
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:855-869




Template-Type: ReDIF-Article 1.0
Author-Name: Timo Mitze
Author-X-Name-First: Timo
Author-X-Name-Last: Mitze
Author-Name: Torben Dall Schmidt
Author-X-Name-First: Torben Dall
Author-X-Name-Last: Schmidt
Author-Name: Daniel Rauhut
Author-X-Name-First: Daniel
Author-X-Name-Last: Rauhut
Author-Name: Aki Kangasharju
Author-X-Name-First: Aki
Author-X-Name-Last: Kangasharju
Title: Ageing shocks and short-run regional labour market dynamics in a spatial panel VAR approach
Abstract: 
 Using a flexible spatial panel VAR model for a small-scale labour market system, we investigate the dynamic interdependences between changes in the demographic structure and the labour market performance of a regional economy. With a particular focus on ageing shocks, we describe an increase in the share of elderly in regional population due to exogenous changes in the institutional context, such as pension reforms. The regional labour market implications of an ageing shock are then tested with regard to the effects on employment growth, unemployment and labour participation rate. Our results based on a sample of 71 Scandinavian regions point to negative regional labour market effects of an ageing shock implying a reduction in employment growth and a temporarily declining labour participation rate, while the unemployment rate increases. Importantly, spatial spillovers amplify these negative impacts through a marginalization of macro-regional labour markets. As a robustness check, we reverse the causal ordering and analyze the responses to a positive macroeconomic shock which initially increases employment growth. We find direct and spatially indirect adjustment patterns characterized by a reduction of the unemployment rate, an increase in the labour participation rate and a decrease in the share of elderly in the population.
Journal: Applied Economics
Pages: 870-890
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346360
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346360
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:870-890




Template-Type: ReDIF-Article 1.0
Author-Name: Iftekhar Robin
Author-X-Name-First: Iftekhar
Author-X-Name-Last: Robin
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: Cost efficiency in Bangladesh banking: does financial reform matter?
Abstract: 
 This article estimates the cost efficiency of the commercial banks of Bangladesh in the context of financial reform. Employing the single-stage stochastic frontier analysis (SFA) model, the study uses a unique balanced panel data set comprising bank-level annual data from the dominant commercial banks in Bangladesh for the period 1983–2012. The results show that bank cost has fallen due to financial deregulation. Our results from the data envelopment analysis do not vary significantly that we obtained from the SFA. In addition, the presence of politically linked directors on the bank board has an adverse effect on efficiency. These findings suggest that further reforms aiming at removing all sorts of political influence should continue to ensure competitive environment in order to achieve cost efficiency in the financial sector of the country.
Journal: Applied Economics
Pages: 891-904
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346361
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346361
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:891-904




Template-Type: ReDIF-Article 1.0
Author-Name: Jianhua Yin
Author-X-Name-First: Jianhua
Author-X-Name-Last: Yin
Author-Name: Sen Wang
Author-X-Name-First: Sen
Author-X-Name-Last: Wang
Title: The effects of corporate environmental disclosure on environmental innovation from stakeholder perspectives
Abstract: 
 Based on legitimacy theory and resource dependence theory, using 111 listed companies among China’s typically high pollution-emitting listed corporations, research into the effects of environmental disclosure on environmental innovation is undertaken. From the perspective of stakeholders, we analyse the moderating effects of different proportions of institutional investor holdings and types of enterprises on the relationship between environmental disclosure and environmental innovation. The results indicate that corporate environmental disclosure has a positive role in promoting environmental innovation; the proportion of institutional investor holdings has a positive moderating effect between environmental disclosure and environmental innovation. However, there is no significant difference between state-owned enterprises and private enterprises in terms of the effect of the environmental disclosure on environmental innovation, which possibly arises because both types of enterprises make full use of their own advantages to instigate environmental innovation through environmental disclosure. The conclusions may help enterprise decision-makers implementing environmental innovation and government policy makers formulating scientific policies to promote the clean production in enterprises.
Journal: Applied Economics
Pages: 905-919
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346362
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346362
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:905-919




Template-Type: ReDIF-Article 1.0
Author-Name: Xingnan Jiang
Author-X-Name-First: Xingnan
Author-X-Name-Last: Jiang
Title: Operational risk and its impact on North American and British banks
Abstract: 
 This study examines the financial impact of operational risk and its loss announcements on the value of publicly traded banks in United States, UK and Canada. There are three main findings: (1) on average, the market reacts more negatively to a loss’s initial announcement than its settlement news; (2) operational loss events cause strong reputational damage to the announcing banks and (3) the market is particularly sensitive to the announcement of losses caused by internal fraud, of a large magnitude, resulted in the order of restitution, and that are the rulings of a regulatory investigation.
Journal: Applied Economics
Pages: 920-933
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346363
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346363
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:920-933




Template-Type: ReDIF-Article 1.0
Author-Name: Steven B. Caudill
Author-X-Name-First: Steven B.
Author-X-Name-Last: Caudill
Author-Name: Shannon Hourican
Author-X-Name-First: Shannon
Author-X-Name-Last: Hourican
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Does college football impact the size of university applicant pools and the quality of entering students?
Abstract: 
 The role played by collegiate athletics in furthering the mission of institutions of higher education has been one of the more active research streams in the economics literature. Two areas of emphasis in this particular genre concern the relationship between athletics success and the size of a university’s applicant pool, and the relationship between athletics success and the quality of a university’s incoming class. This study extends both lines of research above by employing a unique panel data set consisting of 10 institutions that either added or eliminated college football between 1997 and 2015 in order to examine the impact of the presence of college football programme on both the size of university applicant pools and the quality of the students chosen for admission. Results from a panel data estimator presented here suggest that the size of their applicant pool shrinks the year following discontinuation of a college football programme. In the case of ACT scores, the results are similar, indicating that the ACT scores of incoming freshmen decrease after discontinuation of football.
Journal: Applied Economics
Pages: 1885-1890
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380289
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380289
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1885-1890




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Zeynel Abidin Ozdemir
Author-X-Name-First: Zeynel Abidin
Author-X-Name-Last: Ozdemir
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Serkan Gunes
Author-X-Name-First: Serkan
Author-X-Name-Last: Gunes
Title: Does inflation cause gold market price changes? evidence on the G7 countries from the tests of nonparametric quantile causality in mean and variance
Abstract: 
 This article utilizes the newly proposed nonparametric causality-in-quantiles test to examine the predictability of mean and variance of changes in gold prices based on inflation for G7 countries. The causality-in-quantiles approach permits us to test for not only causality in mean but also causality in variance. We start our investigation by utilizing tests for nonlinearity. These tests identify nonlinearity, showing that the linear Granger causality tests are subject to misspecification error. Unlike tests of misspecified linear models, our nonparametric causality-in-quantiles tests find causality in mean and variance from inflation to gold market price changes between the 0.20 quantile and the 0.70 quantile, implying that very low- and high-price changes in gold markets are not related to inflation. These changes should be related to other sources, such as financial shocks and exchange market shocks. We find support that gold serves as a hedge against inflation, but only in the mid-quantile ranges, i.e. quantiles from 0.20 to 0.70. Our results show that gold does not serve as a hedge against inflation during periods when gold market price changes are very low or very high, which are respectively quiet and highly volatile periods.
Journal: Applied Economics
Pages: 1891-1909
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380290
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380290
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1891-1909




Template-Type: ReDIF-Article 1.0
Author-Name: Vahagn Galstyan
Author-X-Name-First: Vahagn
Author-X-Name-Last: Galstyan
Title: LIML estimation of import demand and export supply elasticities
Abstract: 
 I apply limited-information maximum likelihood (LIML) to estimate import demand and export supply elasticities for a range of eurozone countries. The results highlight inconsistencies in the parameters estimated by LIML relative to an estimator that is robust to heteroskedasticity. The nature of the structural equations reveals complications generated by the limiting behavior of the parameters that can be replicated in finite samples. The results of simulations underscore improvements in parameter estimates in a three-dimensional panel, suggesting that the problem of limiting behaviour can be overcome in larger dataset/panels.
Journal: Applied Economics
Pages: 1910-1918
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380291
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380291
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1910-1918




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew G Interis
Author-X-Name-First: Matthew G
Author-X-Name-Last: Interis
Author-Name: Jon Rezek
Author-X-Name-First: Jon
Author-X-Name-Last: Rezek
Author-Name: Kristen Bloom
Author-X-Name-First: Kristen
Author-X-Name-Last: Bloom
Author-Name: Annika Campbell
Author-X-Name-First: Annika
Author-X-Name-Last: Campbell
Title: Assessing the value of short-term study abroad programmes to students
Abstract: 
 For many universities, students participating in short-term faculty-led programmes make up a large portion of the total study abroad population. In this article, we report the results of a unique choice experiment in which 1255 students were asked about their personal characteristics and their preferences for study abroad programme attributes. Using a random parameters logistic regression model, we find that students attitudes towards risk, their experience with international travel and their beliefs about whether study abroad would help them professionally were major determinants of whether a student expressed interest in studying abroad. We also estimate students’ willingness to pay for various programme attributes, including destination, programme duration, course type and the number of experiential learning activities. We find that the highest value programmes give students credit towards their major rather than towards the university core or as an elective and that they are 3–4 weeks in length rather than 2 or 6 weeks. Also, while students value more experiential learning activities per week, each additional trip adds less value with no additional value beyond four activities. Results are useful for practitioners interested in maximizing student participation while effectively managing study abroad budgets.
Journal: Applied Economics
Pages: 1919-1933
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380292
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380292
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1919-1933




Template-Type: ReDIF-Article 1.0
Author-Name: Xiangnan Meng
Author-X-Name-First: Xiangnan
Author-X-Name-Last: Meng
Author-Name: Tony Cavoli
Author-X-Name-First: Tony
Author-X-Name-Last: Cavoli
Author-Name: Xin Deng
Author-X-Name-First: Xin
Author-X-Name-Last: Deng
Title: Determinants of income diversification: evidence from Chinese banks
Abstract: 
 This article presents an analysis of the determinants of Chinese commercial banks’ income diversification decisions. Using a panel dataset comprising 88 Chinese domestic banks from 2003 to 2010, we find that bank diversification reflects a variety of managerial abilities: insolvency risks, cost, capital position, asset scale and ownership structure. A larger ratio of banking assets to gross domestic product and lower interest spread lead to a higher level of diversification. Moreover, national banks and regional banks have different strategic responses to the macroeconomic, and indeed, regulatory environment. Resisting shocks from the banking sector and the macro economy, and supplementing liquidity shortages from intermediation business seem to be the driving forces of national banks to operate in non-banking sectors.
Journal: Applied Economics
Pages: 1934-1951
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1383594
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1383594
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1934-1951




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Title: Financial development, industrialization, the role of institutions and government: a comparative analysis between India and China
Abstract: 
 This research is the first comparative attempt incorporating the role of economic, demographic, sectoral contribution, government and trade in explaining financial development for India and China. Using time-series estimations, we establish that institutional quality and government size impede financial development, whereas urbanization, industrialization and service sector growth help in financial development for both countries. Trade openness also enhances Indian financial development but hinders Chinese financial development. We suggest that the policy advisers should not underestimate the role of urbanization, industrialization and service sector growth in implementing financial development. Finally, we find that the institutions and governments will play a key role for both economies in enhancing finance and growth.
Journal: Applied Economics
Pages: 1952-1977
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1383595
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1383595
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1952-1977




Template-Type: ReDIF-Article 1.0
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Zhizhong Li
Author-X-Name-First: Zhizhong
Author-X-Name-Last: Li
Author-Name: Rongrong Li
Author-X-Name-First: Rongrong
Author-X-Name-Last: Li
Title: Automate the identification of technical patterns: a K-nearest-neighbour model approach
Abstract: 
 To explore profitable patterns in historical stock prices, ordinarily a promising pattern is selected by rule of thumb, and then its performance is verified by comparing the conditional return of the pattern with the unconditional benchmark return. We adopt an alternative philosophy: without any pre-selected pattern, the proposed method explores the entire graphic space to automate the identification of technical patterns. Derived from the K-nearest-neighbour (KNN) forecast, our method calculates the graphic similarity of patterns by the distance of the price vectors, and then classifies patterns according to the graphic similarity, and finally identifies patterns which contain predictive powers of the future market movement. KNN provides an excellent tool for probing the entire graphic space formed by price patterns to obtain an overall perspective of the effectiveness of technical patterns. Not only the well-known patterns but also the unnoticed and potentially informative patterns can be probed. To evaluate the performance, our method is compared with classic KNN forecast and technical trading rules. Results indicate that the stock market is relatively efficient and technical analysis is still effective to explore excess returns.
Journal: Applied Economics
Pages: 1978-1991
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1383596
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1383596
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1978-1991




Template-Type: ReDIF-Article 1.0
Author-Name: Hyunseok Kim
Author-X-Name-First: Hyunseok
Author-X-Name-Last: Kim
Author-Name: Ju Hyun Kim
Author-X-Name-First: Ju Hyun
Author-X-Name-Last: Kim
Title: Voluntary zero-dividend paying firms: characteristics and performance
Abstract: 
 We investigate the characteristics of ‘voluntary zero dividend paying’ firms and their subsequent performance. We define NDR_HP (no dividends or repurchases, with high profitability) firms as those with profits above the industry median and yet pay out zero dividends (including share repurchases). Signalling, agency, residual dividend, and life cycle theories explain firm characteristics and dividend payouts, to which we add the novel variables CEO overconfidence and market competition. We discover that growth opportunity, capital expenditure, and CEO overconfidence are positively related to NDR_HP. In addition, we find that the NDR_HP group outperforms all other groups in terms of future performance.
Journal: Applied Economics
Pages: 5420-5446
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610713
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610713
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5420-5446




Template-Type: ReDIF-Article 1.0
Author-Name: Apurba Shee
Author-X-Name-First: Apurba
Author-X-Name-Last: Shee
Author-Name: Calum G. Turvey
Author-X-Name-First: Calum G.
Author-X-Name-Last: Turvey
Author-Name: Liangzhi You
Author-X-Name-First: Liangzhi
Author-X-Name-Last: You
Title: Design and rating of risk-contingent credit for balancing business and financial risks for Kenyan farmers
Abstract: 
 Weather-related agricultural risks and limited access to credit are serious impediments to agricultural productivity and growth in developing countries. This paper describes a novel insurance linked credit model piloted in Kenya, where insurance markets are effectively absent, and farmers do not borrow because of the risk of losing their collateral. One of the challenges in deigning bundled credit products, in the absence of traded securities, is the actuarial pricing and risk rating of the insurance and the loan product. We develop a rainfall linked risk-contingent credit that transfers drought risk related perils from borrower to lender via insurance mechanism that provide a balance between business and credit risks for smallholder farmers. We describe the methodology used to design and rating of a risk-contingent structured operating agricultural credit instrument using CHIRPS rainfall data from 1981–2016 in Kenya. We illustrate the use of Monte Carlo methods to risk modelling that can be integrated within the general insurance and credit rating framework. The innovative design and methodology presented in this paper are as important as the product delivery mechanism and will be of interest to specialists in development economics and agricultural finance.
Journal: Applied Economics
Pages: 5447-5465
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613502
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613502
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5447-5465




Template-Type: ReDIF-Article 1.0
Author-Name: Guojin Chen
Author-X-Name-First: Guojin
Author-X-Name-Last: Chen
Author-Name: Jie Ding
Author-X-Name-First: Jie
Author-X-Name-Last: Ding
Author-Name: Xiangqin Zhao
Author-X-Name-First: Xiangqin
Author-X-Name-Last: Zhao
Title: A lottery-preference-based explanation of realized kurtosis puzzle in Chinese stock market
Abstract: 
 High kurtosis corresponds to fat tails on both sides and under risk-aversion assumption investors’ dislike of left-tail loss outweighs their preference for right-tail gain. Therefore, high kurtosis characteristic of stock should predict high expected returns. However, the high-frequency-data-based empirical results on Chinese stock market are just the opposite, which we refer to as the ‘realized kurtosis puzzle’. Using the double sorts and firm-level cross-sectional regression methods, we further demonstrate investors’ preference for lottery-like stocks or lottery preference is key to solve the puzzle. Our further empirical research verifies stocks with higher retail investors’ shareholding proportion and unavailable for short show stronger ‘realized kurtosis puzzle’. In addition, the puzzle is particularly significant in high lottery preference periods while less apparent in low lottery preference times.
Journal: Applied Economics
Pages: 5466-5481
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613510
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613510
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5466-5481




Template-Type: ReDIF-Article 1.0
Author-Name: Olushina Olawale Awe
Author-X-Name-First: Olushina Olawale
Author-X-Name-Last: Awe
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: Time series analysis of economic growth rate series in Nigeria: structural breaks, non-linearities and reasons behind the recent recession
Abstract: 
 This article deals with the modelling of growth rate time series in Nigeria with a view of detecting its statistical properties, structural breaks and non-linearities. We employ both fractional integration and structural break time series techniques in modelling the annual growth rate series of the Nigerian GDP growth rate for about 55 years. The data span between 1960 and 2017. The results show that Nigerian growth rate is unstable with non-linearities and long-range dependence structures. We also investigate what might explain these features and conclude that erratic political institutions, associated with poor economic management and insecurity in Nigeria, among others, in the decades after independence are the root causes of non-linearities observed, which have also led to the subsequent recent economic recession in Nigeria.
Journal: Applied Economics
Pages: 5482-5489
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613513
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613513
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5482-5489




Template-Type: ReDIF-Article 1.0
Author-Name: Chung Baek
Author-X-Name-First: Chung
Author-X-Name-Last: Baek
Title: How are gold returns related to stock or bond returns in the U.S. market? Evidence from the past 10-year gold market
Abstract: 
 Although the gold market over the past decade has been soaring relative to its prior history, there have been few studies on the relationship between the gold market and other major financial markets based on the past decade of data. To re-investigate how the gold market interacts with the stock market and the bond market, we re-visit economic and financial characteristics of gold using the past 10-year data in terms of co-integration, causality, predictive power, and extreme returns. We find that while gold returns are not co-integrated with stock returns and bond returns, gold returns have a unidirectional causality with both of them. Also, we discover that gold returns have some predictive power on subsequent short-term stock returns. Under extreme market scenarios, it turns out that gold returns tend to deteriorate more simultaneously with bond returns than stock returns. This means that gold can better serve as a safe haven for stock in a relative sense during temporary market downturns.
Journal: Applied Economics
Pages: 5490-5497
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1616062
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616062
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5490-5497




Template-Type: ReDIF-Article 1.0
Author-Name: Ben Van Vliet
Author-X-Name-First: Ben
Author-X-Name-Last: Van Vliet
Author-Name: Apostolos Xanthopoulos
Author-X-Name-First: Apostolos
Author-X-Name-Last: Xanthopoulos
Title: Iso-risk: an analysis of risk-taking in fixed income markets
Abstract: 
 We test the hypothesis that portfolio managers trade-off variance and kurtosis in asset returns. We find empirical evidence that supports the iso-risk hypothesis using fixed income mutual fund data. Managers appear to systematically ‘swing for the fences’ when the probability of outperformance is low. This resolves previous enigmas of preference reversals and adheres to both Prospect Theory and tournament effects. The methodology developed enables reconciliation of active return metrics and managers’ total return behaviour. As the data set includes the great recession, we provide an economic interpretation of the results in light of the trade-off hypothesis.
Journal: Applied Economics
Pages: 5498-5514
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1616063
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616063
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5498-5514




Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Díaz-Dapena
Author-X-Name-First: Alberto
Author-X-Name-Last: Díaz-Dapena
Author-Name: Esteban Fernández-Vázquez
Author-X-Name-First: Esteban
Author-X-Name-Last: Fernández-Vázquez
Author-Name: Rafael Garduño-Rivera
Author-X-Name-First: Rafael
Author-X-Name-Last: Garduño-Rivera
Author-Name: Fernando Rubiera-Morollon
Author-X-Name-First: Fernando
Author-X-Name-Last: Rubiera-Morollon
Title: Economic integration and regional convergence: effects of NAFTA on local convergence in Mexico, 1980–2008
Abstract: 
 Continental integration processes can alter traditional development axes. Paelinck and Polèse´s work in 1999 explains that in the case of Mexico there is a tension between the U.S. border and the rest of the country: Mexico´s integration in the NAFTA should have reduced the U.S. border attraction, extending the growth to territories located between this border and Mexico City. To test this hypothesis, we propose a spatial conditional β-convergence model that uses as regressors both the distances to the U.S. border and to Mexico City, together with other control variables. This model is applied to the period from 1980 to 2008 using GVA at the municipality level. Working with municipal-level data allows to observe convergence patterns across space and identify the effects of location. The time-span studied distinguishes between before and after NAFTA. Estimates based on Mundlak´s approach were obtained for time-invariant regressors. Results show that during the pre-NAFTA period there was a general process of convergence, but it is mainly explained by the faster growth of municipalities located near to the U.S. border. However, post-NAFTA, convergence in municipalities disappeared and the effect of distance to the U.S. border reversed its sign, as predicted in Paelinck and Polèse´s model.
Journal: Applied Economics
Pages: 5515-5527
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1616064
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616064
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5515-5527




Template-Type: ReDIF-Article 1.0
Author-Name: Dao Thi Hong Nguyen
Author-X-Name-First: Dao Thi Hong
Author-X-Name-Last: Nguyen
Author-Name: Sizhong Sun
Author-X-Name-First: Sizhong
Author-X-Name-Last: Sun
Author-Name: A. B. M. Rabiul Alam Beg
Author-X-Name-First: A. B. M. Rabiul Alam
Author-X-Name-Last: Beg
Title: How does FDI affect domestic firms’ wages? theory and evidence from Vietnam
Abstract: 
 This paper explores the role of inward foreign direct investment (FDI) as a determinant of domestic firms’ wages, namely wage spillovers. We first construct a theoretical model to demonstrate that the presence of FDI firms affects domestic firms’ expected average wages via productivity spillovers and a cut-off capability. We then estimate FDI-induced wage spillovers by employing IV-GMM estimator with a five-year panel dataset of a growing service industry in Vietnam. Despite FDI firms on average pay 2.25 times that of domestic firms, they put a downward pressure on domestic firms’ wages. A one percent increase in FDI presence causes domestic firms to cut average wages by 2.03 percent. The estimations also find that firm-specific features are attributable to significant differences in their wages as well as FDI-linked wage spillovers.
Journal: Applied Economics
Pages: 5311-5327
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610717
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610717
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5311-5327




Template-Type: ReDIF-Article 1.0
Author-Name: K. K. G. Wong
Author-X-Name-First: K. K. G.
Author-X-Name-Last: Wong
Author-Name: Lin Zhu
Author-X-Name-First: Lin
Author-X-Name-Last: Zhu
Author-Name: Vinh Q. T. Dang
Author-X-Name-First: Vinh Q. T.
Author-X-Name-Last: Dang
Title: Effects of income distribution in an inverse demand system: evidence from Chinese household survey data
Abstract: 
 This study provides an empirical analysis of the impact of changes in income distribution on food demand in China using data from China Health and Nutrition Survey. A new parametric form of an inverse demand system is introduced and estimated taking into account reported zero consumption. This new form is a natural extension of recent works that accommodate the incorporation of income distribution into the system and imposition of global regularity conditions in estimation. Our results generally indicate that the distribution of households across income groups is important in determining food demand in China and that a movement towards a more equal income distribution in China will stimulate the demand for vegetable, fruit, fish and eggs.
Journal: Applied Economics
Pages: 5328-5344
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610720
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610720
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5328-5344




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Behr
Author-X-Name-First: Andreas
Author-X-Name-Last: Behr
Author-Name: Christoph Schiwy
Author-X-Name-First: Christoph
Author-X-Name-Last: Schiwy
Author-Name: Jurij Weinblat
Author-X-Name-First: Jurij
Author-X-Name-Last: Weinblat
Title: Investment, default propensity score and cash flow sensitivity in six EU member states: evidence based on firm-level panel data
Abstract: 
 Using a panel data set covering six European countries and $$119700$$119700 firms ($$582153$$582153 observations) over the period $$2008$$2008–$$2013$$2013, we analyse the cash flow sensitivity of investment spending. As most of the firms are not listed at stock exchanges, a balance sheet-based approximation on Tobin’s Q is used to indicate investment opportunities. We analyse internal and external liquidity constraints and their effect on investment decisions. In the literature, external constraints are most often indicated by simple accounting-based items/ratios. As the adequacy of the a priori indicator, reflecting the external constraints, is crucial, we contribute in proposing a more sophisticated approach. We estimate propensities to default using adapted random forests. In our descriptive analysis, we find strong evidence for the u-shape of the investment curve. However, after controlling for investment opportunities we find no increased cash flow sensitivity of investment, neither for a priori externally nor for internally constrained firms. Hence, our results hint for the absence of liquidity constraints. We attribute these towards the rather expansionary monetary policy since the financial crisis.
Journal: Applied Economics
Pages: 5345-5368
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613499
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613499
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5345-5368




Template-Type: ReDIF-Article 1.0
Author-Name: Dorothée Charlier
Author-X-Name-First: Dorothée
Author-X-Name-Last: Charlier
Author-Name: Berangère Legendre
Author-X-Name-First: Berangère
Author-X-Name-Last: Legendre
Author-Name: Anna Risch
Author-X-Name-First: Anna
Author-X-Name-Last: Risch
Title: Fuel poverty in residential housing: providing financial support versus combatting substandard housing
Abstract: 
 Between 50 and 125 million Europeans are unable to afford the energy needed for adequate heating, cooking, light and use of appliances in the home. Tackling fuel poverty has thus become a public policy challenge. In this article, we assess the effectiveness of social energy subsidies and social housing to reduce fuel poverty. The literature reports that rising fuel prices, low incomes and energy-inefficient housing are the main causes of fuel poverty. Existing public policies focus mainly on price- and income-based measures to reduce fuel poverty, such as social energy subsidies. This type of policy is palliative as it does not permit to sustainably eradicate fuel poverty. Other policies aim to encourage renovation in order to improve energy efficiency. Those policies are curative as they sustainably reduce one cause of fuel poverty: energy inefficiency. In this article, we focus on another public policy to tackle fuel poverty: social housing. We believe that this policy could be preventive, as the literature reports the better energy efficiency of social housing. We use matching methods and find that living in social housing decreases fuel poverty by 5.4% to 9.1%. On the contrary, social energy subsidies have no effect on fuel poverty.
Journal: Applied Economics
Pages: 5369-5387
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613501
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613501
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5369-5387




Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Alina Maydybura
Author-X-Name-First: Alina
Author-X-Name-Last: Maydybura
Title: Idiosyncratic volatility and the cross-section of anomaly returns: is risk your Ally?
Abstract: 
 Due to arbitrage risk asymmetries, the relationship between idiosyncratic risk and expected returns is positive (negative) among overpriced (underpriced) stocks. We offer a new active anomaly-selection strategy that capitalizes on this effect. To this end, we consider 11 equity anomalies in the U.S. market for years 1963–2016. Buying (selling) long (short) legs of the anomaly portfolios with the highest idiosyncratic volatility produces monthly abnormal returns ranging from 0.97% to 1.14% per month, outperforming a naive benchmark that equally weights all the anomalies by 45–70%. The effect cannot be subsumed by any other established anomaly-return predictor, such as momentum or seasonality. The results are robust to many considerations, including different numbers of anomalies in the portfolios, subperiod analysis, as well as estimation of idiosyncratic risk from the alternative models and throughout different periods.
Journal: Applied Economics
Pages: 5388-5397
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613505
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613505
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5388-5397




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Li
Author-X-Name-First: Yu
Author-X-Name-Last: Li
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Author-Name: Zuoping Xiao
Author-X-Name-First: Zuoping
Author-X-Name-Last: Xiao
Title: Economic policy uncertainty and the Chinese stock market volatility: new evidence
Abstract: 
 This study investigates the impacts of the economic policy uncertainty (EPU) indexes of China and the G7 countries on Chinese stock market volatility and further constructs a new diffusion index based on these indexes using principal component analysis (PCA) to achieve enhanced predictive ability. The in-sample results indicate that the EPU indexes of China and some of the G7 countries show a significantly negative impact on future volatility. Moreover, our constructed diffusion index also has a significantly negative impact. Furthermore, the out-of-sample results show that this diffusion index exhibits a significantly higher forecast accuracy than the EPU itself and combination forecasts. Finally, various robustness checks are consistent with our main conclusions. Overall, we construct a new and useful indicator that can substantially increase forecast accuracy with respect to the Chinese stock market.
Journal: Applied Economics
Pages: 5398-5410
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613507
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613507
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5398-5410




Template-Type: ReDIF-Article 1.0
Author-Name: Yan Zheng
Author-X-Name-First: Yan
Author-X-Name-Last: Zheng
Author-Name: Xiaoming Liao
Author-X-Name-First: Xiaoming
Author-X-Name-Last: Liao
Title: Corruption governance and its dynamic stability based on a three-party evolutionary game with the government, the public, and public officials
Abstract: 
 The current state of corruption in China is still worrisome. Corruption among public officials depends not only on their subjective will, but also on the success rate of government investigations and public whistleblowing. Based on the evolutionary game theory, this study constructs an evolutionary game model with the government, the people, and public officials and solves the dynamic model. The authors also provide a numerical simulation of the proposed model to confirm theoretical predictions. The results reveal that when the government’s success rate reaches a certain threshold, public officials will trend to a strategy of no bribery, and at this threshold, raising the cost of bribing public officials can quickly prevent them from corruption. At the equilibrium, the public will trend toward a strategy of no whistleblowing. The findings of this study are of great significance to the current anti-corruption debate in China.
Journal: Applied Economics
Pages: 5411-5419
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613508
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613508
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5411-5419




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed S. Alanazi
Author-X-Name-First: Ahmed S.
Author-X-Name-Last: Alanazi
Author-Name: Benjamin Liu
Author-X-Name-First: Benjamin
Author-X-Name-Last: Liu
Author-Name: Haitham A. Al-Zoubi
Author-X-Name-First: Haitham A.
Author-X-Name-Last: Al-Zoubi
Title: IPO underpricing in supply and demand framework: evidence from a market of retailers
Abstract: 
 How do supply, demand and allocation of shares on the underpricing of initial public offerings (IPOs) affect the shape and steepness of supply and demand curves? Theoretical studies posit that subscribers ‘flip’ in IPOs immediately on the listing day to capture instantaneous profits. Consistent with this hypothesis, we find that both curves of the market listing day of IPOs are significantly negatively sloped with the supply curve being much steeper and above the demand curve. The excess demand that occurs during the subscription period becomes excess supply once the shares start to float on the listing day. Overall, we establish a strong empirical link between the underpricing puzzle and the aftermarket interaction of IPOs.
Journal: Applied Economics
Pages: 5835-5849
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186794
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186794
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5835-5849




Template-Type: ReDIF-Article 1.0
Author-Name: Witsanu Attavanich
Author-X-Name-First: Witsanu
Author-X-Name-Last: Attavanich
Author-Name: Brian J. Schilling
Author-X-Name-First: Brian J.
Author-X-Name-Last: Schilling
Author-Name: Kevin P. Sullivan
Author-X-Name-First: Kevin P.
Author-X-Name-Last: Sullivan
Title: Measuring the effects of preservation on farm profits in a continuous treatment setting
Abstract: 
 Despite billions of dollars of public appropriations to state purchase of development rights (PDR) programmes, there has been limited evaluation of the effects of these investments on the economic performance of preserved farms. This article estimates dose-response functions to evaluate the effects of enrolment in New Jersey’s PDR programme on farm profitability. The generalized propensity score method in a continuous treatment setting is used to address selection bias arising from voluntary programme participation. Treatment effects are measured across treatment levels to determine whether farm profitability is affected differently across levels of programme participation. Our findings reveal that, relative to unpreserved farms, profit per acre tends to increase along lower treatment levels. The profit per acre of preserved farms in the 1–40% treatment range is, on average, $407 higher than that of unpreserved farms in the full sample. Positive profit differentials averaging between $317 and $472 per acre are also observed in the 1–20%, 1–40% and 1–60% treatment quintiles in the farming occupation sample. We do not observe statistically significant profitability differentials when treatment effects are averaged across all positive treatment values.
Journal: Applied Economics
Pages: 5850-5865
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186795
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186795
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5850-5865




Template-Type: ReDIF-Article 1.0
Author-Name: Tomas Havranek
Author-X-Name-First: Tomas
Author-X-Name-Last: Havranek
Author-Name: Zuzana Irsova
Author-X-Name-First: Zuzana
Author-X-Name-Last: Irsova
Author-Name: Jiri Schwarz
Author-X-Name-First: Jiri
Author-X-Name-Last: Schwarz
Title: Dynamic elasticities of tax revenue: evidence from the Czech Republic
Abstract: 
 Tax revenue elasticities with respect to tax bases are key parameters for the modeling of public finances. Yet the existing studies estimating these elasticities for emerging countries disregard the effects of tax reforms on tax revenue, which renders their estimates inconsistent. We introduce a framework for estimating both short- and long-run tax revenue elasticities using quarterly data adjusted for the effects of reforms. Our results suggest that the long-run elasticities in the Czech Republic are 1.4 for wage tax, 0.9 for value added tax, 1.7 for profit tax and 1 for social security contributions. The adjustment process for value added tax and social security contributions is fast, but for the remaining two categories, it is important to distinguish between the short- and long-run elasticities: the initial response of revenue to changes in the bases is weak. In the case of wage tax it takes half a year for the elasticity to surpass unity.
Journal: Applied Economics
Pages: 5866-5881
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186796
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186796
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5866-5881




Template-Type: ReDIF-Article 1.0
Author-Name: Xinhua Gu
Author-X-Name-First: Xinhua
Author-X-Name-Last: Gu
Author-Name: Yang Zhang
Author-X-Name-First: Yang
Author-X-Name-Last: Zhang
Author-Name: Xiaolin Qian
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Qian
Author-Name: Haizhen Guo
Author-X-Name-First: Haizhen
Author-X-Name-Last: Guo
Title: The suspension of borrowing: an implicit penalty for loan default under imperfect information
Abstract: 
 A credit seeker may be suspended from borrowing for a period of time due to a previous default. Such suspension is widely used in bank lending through credit check. Our work analyses the effects of suspension on the investment choice of borrowers under uncertainty and on the lending policy of banks facing asymmetric information. We show that suspension should be tightened at low loan rates, but loosened otherwise, to improve the repayment performance of borrowers. We also show that although credit rationing may not be completely removed due to imperfect information, the excess demand for credit or transitive waiting in the market can actually be attenuated by such efficient use of suspension. Our theoretical predictions are consistent with observed cyclical patterns of changes in lendingrates and suspension severity.
Journal: Applied Economics
Pages: 5882-5896
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186797
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186797
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5882-5896




Template-Type: ReDIF-Article 1.0
Author-Name: Akash Issar
Author-X-Name-First: Akash
Author-X-Name-Last: Issar
Author-Name: Poornima Varma
Author-X-Name-First: Poornima
Author-X-Name-Last: Varma
Title: Are Indian rice exporters able to price discriminate? Empirical evidence for basmati and non-basmati rice
Abstract: 
 The role of exchange rate fluctuations on the pricing behaviour of Indian rice exporters in their major destination markets is examined using the pricing-to-market (PTM) model. The analysis was undertaken in a context where India has emerged as a leading exporter of rice in the world market. The study distinguishes between basmati and non-basmati rice in the analysis as the destination markets differ across these two varieties. One of the key contributions of this study is that it undertakes an analysis under 3 exchange rate models, they are: nominal, real and commodity-specific exchange rates. The results from our analysis indicated the presence of non-competitive pricing behaviour of India’s rice exporters in majority of destination markets due to both the market-specific characteristics as well as exchange rate-induced effects. The amplification of exchange rate effects was more prominent in commodity-specific exchange rate model whereas local currency stabilization was more prominent under nominal and real exchange rate models. Furthermore, the analysis showed that the commodity-specific exchange rate better predicts the PTM behaviour of rice exporters.
Journal: Applied Economics
Pages: 5897-5908
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186798
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186798
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5897-5908




Template-Type: ReDIF-Article 1.0
Author-Name: Fida Karam
Author-X-Name-First: Fida
Author-X-Name-Last: Karam
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: How did wars dampen trade in the MENA region?
Abstract: 
 The article investigates the impact of wars on trade in the Middle East and North African region. Using an augmented gravity model that controls for the endogeneity problem in our estimation, we introduce a war variable and distinguish between different types of conflicts. The results show that wars have a significantly negative impact on exports, imports and trade. Civil conflicts hinder exports, imports and trade significantly. The disaggregated version of the gravity model shows that non-state conflicts have a detrimental effect on bilateral trade flows in manufacturing, and that none of the conflicts do affect trade in services. We also find that, on average, a conflict is equivalent to a tariff of 5% of the value of trade.
Journal: Applied Economics
Pages: 5909-5930
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186799
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186799
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5909-5930




Template-Type: ReDIF-Article 1.0
Author-Name: Reed Olsen
Author-X-Name-First: Reed
Author-X-Name-Last: Olsen
Author-Name: Hui-Kuan Tseng
Author-X-Name-First: Hui-Kuan
Author-X-Name-Last: Tseng
Title: The U.S. health care expenditure: evidence from 2001 to 2009
Abstract: 
 This study utilizes state-level data from 2001 to 2009 to estimate the impact of the 2007 financial crisis upon health care expenditures. Higher death rates are consistently found to have a positive and statistically significant impact on health expenditures. While mental health and COPD are not generally found to impact expenditures, increases in the percentage of the population diagnosed with cholesterol and obesity tend to increase health expenditures. Increases in health expenditures slowed considerably after the financial crisis. Even though recessions (high unemployment rates) are generally found to have a positive impact on health expenditures, the post-financial crisis time period is estimated to have much lower health expenditures than in other time periods. Our results can be used to give insight into the conditions under which the slower rate of increase in health expenditures can be expected to increase. More research will be needed to be able to more completely explore not only the reasons for these changes in health expenditures but also whether they are likely to continue into the future.
Journal: Applied Economics
Pages: 5931-5940
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1189505
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1189505
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5931-5940




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1196037
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1196037
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:i-i




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: Applied Economics
Pages: ebi-ebi
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1245814
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245814
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:ebi-ebi




Template-Type: ReDIF-Article 1.0
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Lei Xu
Author-X-Name-First: Lei
Author-X-Name-Last: Xu
Author-Name: Ron P. McIver
Author-X-Name-First: Ron P.
Author-X-Name-Last: McIver
Title: How does political connection affect firm financial distress and resolution in China?
Abstract: 
 We examine the impact of political connections on firm performance, financial distress, and its resolution in China, a country where government influence over stock markets has been demonstrated to be considerable. Our findings suggest that over 1999 to 2015, although political connections had limited impact on the emergence of financial distress, such connections assisted distressed firms in gaining increments to debt financing and contributed to a higher likelihood of recovery. This indicates that Chinese authorities follow market economy principles, and only intervene in firms’ operations after they fall into financial distress. In addition, central and local government political connections have different impacts on distress recovery. We conduct additional analyses on differences in distress outcomes for various ownership (State-owned enterprises, SOEs, and non–SOEs) and sample sub-periods (1999–2007 and 2008–2015). Our results are robust to potential endogeneity issues and to alternative measures of financial distress.
Journal: Applied Economics
Pages: 2770-2792
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558358
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558358
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2770-2792




Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Damette
Author-X-Name-First: Olivier
Author-X-Name-Last: Damette
Author-Name: Antonio C. Marques
Author-X-Name-First: Antonio C.
Author-X-Name-Last: Marques
Title: Renewable energy drivers: a panel cointegration approach
Abstract: 
 The expected gains from RES deployment to the reduction of carbon dioxide emissions (CO2) and the cut-off of external dependence of electricity sources could be important. However, it is crucial to understand the determinants of RES growth to help policymakers drawing effective energy polices, involving a commitment of both citizens and governments. In this paper, we use novel panel econometric tools (taking into account structural breaks and cross-section dependence) and find evidence of nonstationary issues and cointegration issues between renewable energy production and its drivers (CO2 emissions, GDP per capita, energy use and dependency). The results thus reveal that non-stationary issues should be attended, otherwise they could be biased. Using suitable estimators (DOLS, FMOLS) with two different data sets and different proxies and taking common factors into account by MG estimates, we find that there is no environmental concerns effect explaining the growth of renewables in European countries. However, national revenues, energy consumption (demand effect) and energy dependency have a positive impact on renewables deployment. Considering these results, economic assistance (subsidies) might be a mean to increase further the renewables deployment in EU countries and education about renewables deployment is needed.
Journal: Applied Economics
Pages: 2793-2806
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558359
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558359
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2793-2806




Template-Type: ReDIF-Article 1.0
Author-Name: Yılmaz Toktaş
Author-X-Name-First: Yılmaz
Author-X-Name-Last: Toktaş
Author-Name: Ali Altiner
Author-X-Name-First: Ali
Author-X-Name-Last: Altiner
Author-Name: Eda Bozkurt
Author-X-Name-First: Eda
Author-X-Name-Last: Bozkurt
Title: The relationship between Turkey’s foreign debt and economic growth: an asymmetric causality analysis
Abstract: 
 Tackling foreign debt that arises as a result of limited and ineffective use of resources is an item that remains on the agenda particularly for developing countries. In this study, we examine the foreign debt debates to date in terms of economic growth and using the time series for the period 2003Q1 to 2017Q1. We used unit root tests to determine the maximum integration degree of series, and we conducted causality analysis. We found a causality relationship between net foreign debt stock and economic growth in causality analyses performed for Turkey. The empirical results of this study indicate that there is a causality relationship, including both positive and negative aspects, between net foreign debt stock and economic growth. The results of our testing showed a significant causal relationship between the variables.
Journal: Applied Economics
Pages: 2807-2817
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558360
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558360
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2807-2817




Template-Type: ReDIF-Article 1.0
Author-Name: Brad R. Humphreys
Author-X-Name-First: Brad R.
Author-X-Name-Last: Humphreys
Author-Name: Adam Nowak
Author-X-Name-First: Adam
Author-X-Name-Last: Nowak
Author-Name: Yang Zhou
Author-X-Name-First: Yang
Author-X-Name-Last: Zhou
Title: Superstition and real estate prices: transaction-level evidence from the US housing market
Abstract: 
 We investigate the impact of superstition on prices paid by Chinese-American home buyers. Chinese consider 8 lucky and 4 unlucky. Lacking explicit buyer ethnicity identifiers, we develop a binomial name classifier, a machine learning approach applicable to any data set containing names, that allows for falsification tests using other ethnic groups, and mitigates ambiguity from the transliteration of Chinese characters into the Latin alphabet. Chinese buyers pay 1–2% premiums for addresses including an 8 and 1% discounts for addresses including a 4. These results are unrelated to unobserved property quality; no premium exists when Chinese sell to non-Chinese. The persistence of superstitions reflects the extent of cultural assimilation.
Journal: Applied Economics
Pages: 2818-2841
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558361
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558361
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2818-2841




Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett
Author-X-Name-First: Lila J.
Author-X-Name-Last: Truett
Author-Name: Dale B. Truett
Author-X-Name-First: Dale B.
Author-X-Name-Last: Truett
Title: Challenges in the Portuguese textile and clothing industry: a fight for survival
Abstract: 
 The Portuguese textile and clothing industry thrived after 1960, when Portugal joined the European Free Trade Association, and it has been an important industry in Portugal in terms of value added, employment, and exports. Nevertheless, the industry has experienced significant challenges with the final integration of the apparel and textile industry into GATT on 1 January 2005, as well as the admission of relatively low-wage Bulgaria and Romania into the European Union in 2007. This paper describes recent trends in the industry between 1995 and 2016, including a substantial decrease in output after 2005 and recovery in recent years. In addition, a translog cost function is used to examine the existence of economies of scale, the relationships among inputs, and the effects of the 2005 GATT entry on the industry’s costs. The findings include strong evidence of economies of scale, consistent with the many small and mid-sized enterprises in the Portuguese textile and clothing industry. The results are also consistent with capital and labour being complementary inputs, while other input pairs are substitutes. The entry into GATT may have had a negative impact on cost, though the evidence for that effect is weak.
Journal: Applied Economics
Pages: 2842-2854
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558362
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558362
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2842-2854




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoli L. Etienne
Author-X-Name-First: Xiaoli L.
Author-X-Name-Last: Etienne
Author-Name: Giancarlo Ferrara
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Ferrara
Author-Name: Douglas Mugabe
Author-X-Name-First: Douglas
Author-X-Name-Last: Mugabe
Title: How efficient is maize production among smallholder farmers in Zimbabwe? A comparison of semiparametric and parametric frontier efficiency analyses
Abstract: 
 The controversial Fast Track Land Reform Programme in Zimbabwe that redistributes commercially-owned farmland to smallholder households has caused concerns about the efficiency of agricultural production in the country. In this paper, we estimate the efficiency of resource use among smallholder farmers in Zimbabwe when producing maize, the staple crop in the country. Using both a semiparametric model and a fully parametric stochastic frontier model, we find significant production shortfalls for smallholder maize production. While labor, capital, and land all significantly affect the total output, the estimated mean efficiency score for farms with less than 10 hectares of land (A1) appears to be under 0.75, and for the entire sample (A1 and A2) it ranges between 0.595 and 0.772. There clearly exists a great potential for maize farmers to improve the technical efficiency and increase the total output. Gender and age of the household head, access to extension services, and activities of other crops significantly affect the technical efficiency of smallholder maize production in Zimbabwe. We also find that all farms operate under increasing returns to scale and that the technical efficiency score tends to increase with the level of output.
Journal: Applied Economics
Pages: 2855-2871
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558363
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558363
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2855-2871




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: Topi Huhta-Halkola
Author-X-Name-First: Topi
Author-X-Name-Last: Huhta-Halkola
Title: Combining value and momentum: evidence from the Nordic equity market
Abstract: 
 This is the first article that explores the recently proposed average ranking approach for the value and momentum strategy in the Nordic equity market offering an exceptional experimental environment. Our results indicate that in the Nordic stock markets, the value anomaly offered excess returns in the 1993–2017 sample period only when small stocks were a part of the portfolio, whereas the momentum effect is strong and significant, irrespective of size. Interestingly, our findings also indicate that the negative correlation between value and momentum seems to be driven by growth stocks: Winner stocks that are value stocks generated 1.66% per month on average, whereas winner stocks that are growth stocks exhibit virtually the same average payoff. On the other hand, the spread between value and growth stocks that are loser stocks is on average 0.97% per month.
Journal: Applied Economics
Pages: 2872-2884
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558364
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558364
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2872-2884




Template-Type: ReDIF-Article 1.0
Author-Name: Pavitra Paul
Author-X-Name-First: Pavitra
Author-X-Name-Last: Paul
Author-Name: Claudia Berlin
Author-X-Name-First: Claudia
Author-X-Name-Last: Berlin
Author-Name: Maud Maessen
Author-X-Name-First: Maud
Author-X-Name-Last: Maessen
Author-Name: Hannu Valtonen
Author-X-Name-First: Hannu
Author-X-Name-Last: Valtonen
Title: A comparison of regret-based and utility-based discrete choice modelling – an empirical illustration with hospital bed choice
Abstract: 
 There is some concern that the unobserved preference heterogeneity in random utility maximization theory-based discrete choice experiment modelling is an important source of error variability. The randomness in utility is often interpreted as interpersonal preference heterogeneity but it can also be intrapersonal random variation in preferences. We compare utility maximization and regret minimization-based choice models’ sensitivity to individual heterogeneity, examine differences between two consecrated models and validate with empirical illustrations. We use frequency of category (public, semi-private, and private) of bed chosen from Swiss cross-sectional datasets (2007–2012) to compare two approaches – utility maximization and regret minimization by applying multinomial logit (MNL) models in regard to the variances in utility (regret) function, goodness-of-fit and predicted marginal effects (pseudo-elasticity) of additional payment. We find parameters with the same sign and estimates with almost same order of magnitude in both the approaches. The statistical significance of attribute effects is consistent in all variants of utility -based MNL models while effects of different attributes are significant only in heteroskedastic extreme value (HEV) variant of regret-based MNL models. This empirical illustration suggests that HEV variant of regret-based models perform better in capturing attribute effects in choice behaviour.
Journal: Applied Economics
Pages: 4295-4305
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444260
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444260
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4295-4305




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Catela Nunes
Author-X-Name-First: Luis Catela
Author-X-Name-Last: Nunes
Author-Name: Ana Balcão Reis
Author-X-Name-First: Ana
Author-X-Name-Last: Balcão Reis
Author-Name: Carmo Seabra
Author-X-Name-First: Carmo
Author-X-Name-Last: Seabra
Title: Is retention beneficial to low-achieving students? Evidence from Portugal
Abstract: 
 The role of retention as an educational tool to overcome under-achievement is a hotly debated issue, especially given that the results in the literature are not consensual. The Portuguese case is particularly well suited to study this issue: all students must take standardized national exams at specific grades. Moreover, the available dataset tracks the performance of students over time. Therefore, we are able to measure the impact of students’ retention on their subsequent academic performance since we can control for each student’s initial level of ability at the moment of retention. We use a propensity score matching approach, in which retained and promoted 4th grade students are matched according to their socioeconomic characteristics and the scores obtained in national exams. To address potentially remaining endogeneity biases, we also use the culture of retention at school level as an instrumental variable. The results suggest that in some situations retentions may have on average a positive impact on future achievement. However, in the cases where statistically significant impacts are found, the estimated magnitudes are relatively small. Our results are relevant for countries with high retention rates that are considering alternative educational policies to promote students’ achievement.
Journal: Applied Economics
Pages: 4306-4317
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444261
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444261
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4306-4317




Template-Type: ReDIF-Article 1.0
Author-Name: Yongjae Lee
Author-X-Name-First: Yongjae
Author-X-Name-Last: Lee
Author-Name: Do-Gyun Kwon
Author-X-Name-First: Do-Gyun
Author-X-Name-Last: Kwon
Author-Name: Woo Chang Kim
Author-X-Name-First: Woo Chang
Author-X-Name-Last: Kim
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Title: An alternative approach for portfolio performance evaluation: enabling fund evaluation relative to peer group via Malkiel’s monkey
Abstract: 
 We propose an implementable portfolio performance evaluation procedure that compares a portfolio with respect to the portfolios constructed by an infinite number of Malkiel’s blindfolded monkeys, or equivalently the whole enumeration of all possible portfolios. We argue that this approach exhibits two main advantages. First, it does not require any benchmark portfolios because a portfolio is being compared to an infinite number of portfolios. Second, it is market condition invariant. Since the market conditions are already reflected in the portfolio performances of an infinite blindfolded monkeys, our measure of portfolio performances is invariant to volatile market conditions.
Journal: Applied Economics
Pages: 4318-4327
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444263
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444263
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4318-4327




Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Title: The impact of ethnic diversity on microenterprise start-ups
Abstract: 
 Until recently, factors determining the decisions made by microfinance institutions (MFIs) to extend loans to business start-ups had not been explored. Recent evidence shows that MFI performance with regard to funds issued for small business start-ups depends on MFI-level characteristics such as profit orientation. We argue that these decisions do not only depend on MFI-specific practices or characteristics, but also on the role ethnic diversity plays. Using data on microfinance lending activities for business start-ups, we examine the impact of ethnic diversity on microenterprise start-ups. Results show that ethnic diversity negatively affects the provision of financial capital for business start-up. Furthermore, results also suggest a negative association between ethnic diversity and the share of female borrowers recorded by MFIs. We examine social networks and outreach as potential channels through which ethnic diversity affects business start-ups.
Journal: Applied Economics
Pages: 4328-4342
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444264
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444264
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4328-4342




Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett
Author-X-Name-First: Lila J.
Author-X-Name-Last: Truett
Author-Name: Dale B. Truett
Author-X-Name-First: Dale B.
Author-X-Name-Last: Truett
Title: A requiem for the Australian motor vehicle industry
Abstract: 
 The last automobiles manufactured in Australia rolled off the assembly line in the fall of 2017. This article looks at some of the factors that have impacted the industry since 1968 and led to its demise, including a high value of the Australian dollar in recent years, strategic decisions on the part of parent companies and reductions in governmental support and tariff protection. We estimate a cost function for the industry with inputs of domestic capital and labour and insourced intermediate goods as well as imported intermediate goods. The findings include that the remaining firms are operating in an output range of strongly statistically significant economies of scale, and that all of the input pairs are substitutes except for statistically significant complementary relationships between capital and domestic intermediate goods and labour and foreign intermediate goods. Unexpected results are that an increase in output per assembly plant appears to have a positive effect on total cost, while an increase in the effective tariff and an increase in the number of models appears to have a negative effect. One explanation for these robust but unexpected findings may be that total profit contribution is a part of total cost, and, therefore, factors that increase total profit contribution will also increase total cost.
Journal: Applied Economics
Pages: 4343-4359
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444265
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444265
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4343-4359




Template-Type: ReDIF-Article 1.0
Author-Name: Ørjan Mydland
Author-X-Name-First: Ørjan
Author-X-Name-Last: Mydland
Author-Name: Erik Haugom
Author-X-Name-First: Erik
Author-X-Name-Last: Haugom
Author-Name: Gudbrand Lien
Author-X-Name-First: Gudbrand
Author-X-Name-Last: Lien
Title: Economies of scale in Norwegian electricity distribution: a quantile regression approach
Abstract: 
 In this article, we investigate scale economies in Norwegian electricity distribution companies using a quantile regression approach. To the best of our knowledge, this is the first attempt to apply this estimation technique when analysing scale economies. We estimate the cost elasticities of the two output components: network length and number of customers, to calculate returns to scale. Our results show large potential of scale economies, particularly for the smallest companies. We also find that returns to scale is increasing over time. These findings have important implications for policymakers when they are deciding the structure of the industry in the future.
Journal: Applied Economics
Pages: 4360-4372
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1450481
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450481
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4360-4372




Template-Type: ReDIF-Article 1.0
Author-Name: Lorna Katusiime
Author-X-Name-First: Lorna
Author-X-Name-Last: Katusiime
Author-Name: Frank W. Agbola
Author-X-Name-First: Frank W.
Author-X-Name-Last: Agbola
Title: Modelling the impact of central bank intervention on exchange rate volatility under inflation targeting
Abstract: 
 This article empirically investigates the effect of central bank’s foreign exchange interventions on the level and volatility of the Uganda shilling/US dollar exchange rate (UGX/USD) under an inflation-targeting regime. Utilizing daily data spanning the period 1 September 2005, to 31 December 2015, we estimate a foreign exchange intervention model within a GARCH theoretic framework. Empirical results indicate that foreign exchange interventions have had mixed impact on the volatility of the exchange rate. We find that inflation targeting is capable of curbing temporary exchange rate shocks. Empirical results indicate that while order flow is capable of reducing exchange rate volatility, an increase in the operating target rate, the 7-day interbank rate tends to exacerbate exchange rate volatility. Our empirical results are robust to alternative model specifications. We argue that inflation targeting is an effective monetary policy tool for curbing exchange rate volatility.
Journal: Applied Economics
Pages: 4373-4386
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1450482
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450482
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4373-4386




Template-Type: ReDIF-Article 1.0
Author-Name: Phuc Van Phan
Author-X-Name-First: Phuc Van
Author-X-Name-Last: Phan
Author-Name: Martin O’brien
Author-X-Name-First: Martin
Author-X-Name-Last: O’brien
Author-Name: Silvia Mendolia
Author-X-Name-First: Silvia
Author-X-Name-Last: Mendolia
Author-Name: Alfredo Paloyo
Author-X-Name-First: Alfredo
Author-X-Name-Last: Paloyo
Title: National pro-poor spending programmes and their effect on income inequality and poverty: Evidence from Vietnam
Abstract: 
 This article examines the causal effects of the national (pro-poor) targeted programmes (NTPs) on both poverty incidence and inequality in Vietnam over the period 2002–2010. While the links between NTPs and poverty alleviation and income inequality have previously been analysed independently, this study is the first to offer a comprehensive analysis of NTPs expenditure on poverty and inequality simultaneously. Applying the system generalized method of moments estimator to a panel of Vietnamese regional data, we are unable to establish that NTPs have significantly mitigated poverty incidence. However, we estimate that NTPs have significantly increased inequality. We offer possible explanations why the NTPs have resulted in these unintended outcomes and discuss potential policies which can reduce both poverty and inequality.
Journal: Applied Economics
Pages: 5579-5590
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313957
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313957
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5579-5590




Template-Type: ReDIF-Article 1.0
Author-Name: Kai-yin Woo
Author-X-Name-First: Kai-yin
Author-X-Name-Last: Woo
Author-Name: Shu-kam Lee
Author-X-Name-First: Shu-kam
Author-X-Name-Last: Lee
Author-Name: Paul Shum
Author-X-Name-First: Paul
Author-X-Name-Last: Shum
Title: Analysis of threshold cointegration with asymmetric adjustments in the Hong Kong grocery industry
Abstract: 
 High market concentration in the Hong Kong grocery industry has been prevalent over many years with the domination of a few large supermarket chains. However, no research has been conducted on the price dynamics between the supermarket and non-supermarket sectors to investigate whether the non-supermarket sector can impose competitive discipline on the dominating supermarket chains. We argue that standard cointegration tests cannot allow for transaction costs and distinguish whether the price co-movement is attributable to price competition or collusion. Our study therefore fills this research gap by adopting the threshold cointegration tests in a three-regime threshold vector error-correction model to account for the asymmetric price adjustment dynamics between supermarket and non-supermarket sectors of Hong Kong and evaluate the market power of the supermarket sectors in the presence of transaction costs. Our results favour the presence of cointegration between the supermarket and non-supermarket price indices with asymmetric adjustment dynamics. We interpret the results of statistically significant downward price adjustments in the outer-band regimes as the evidence of mutual price competition. Nevertheless, the supermarket sector has stronger market power than the non-supermarket sector, and therefore can sustain higher price level without inducing substantial competition pressures inside the neutral band.
Journal: Applied Economics
Pages: 5591-5600
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313959
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313959
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5591-5600




Template-Type: ReDIF-Article 1.0
Author-Name: Jian Xu
Author-X-Name-First: Jian
Author-X-Name-Last: Xu
Author-Name: Jae Woo Sim
Author-X-Name-First: Jae Woo
Author-X-Name-Last: Sim
Title: Are costs really sticky and biased? Evidence from manufacturing listed companies in China
Abstract: 
 Recent studies on cost behaviour have proved that cost increase caused by business expansion is larger than cost decrease caused by business downsizing. This cost stickiness behaviour contradicts the traditional theoretic assumption that cost level and business size change in a linear way. This article investigates the existence or non-existence of cost stickiness using a sample of China’s manufacturing listed companies during the period 2010–2014. First, our findings show that cost stickiness is a pervasive phenomenon and overestimated in the manufacturing industry. Second, we find that cost stickiness varies greatly across industries and in different regions. Finally, we find that cost stickiness is affected by the economic growth. Specifically, cost stickiness increases with the macroeconomic growth. Our results from China’s manufacturing listed companies provide evidence on asymmetric cost behaviour and contain important implications for both cost accounting research and financial accounting research.
Journal: Applied Economics
Pages: 5601-5613
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1316823
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316823
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5601-5613




Template-Type: ReDIF-Article 1.0
Author-Name: Kurt A. Hafner
Author-X-Name-First: Kurt A.
Author-X-Name-Last: Hafner
Author-Name: Bernardí Cabrer Borrás
Author-X-Name-First: Bernardí
Author-X-Name-Last: Cabrer Borrás
Title: Technology spillover effects within Spanish communities
Abstract: 
 The article uses panel data for the period 1990–2010 to estimate technology spillover effects on 17 Spanish communities. Accounting for nonstationarity and cointegration, we use the dynamic OLS estimator to estimate the impact of domestic and non-domestic R&amp;D capital stock on labour productivity of Spanish communities, taking into account trade-, migration- and foreign direct investment (FDI)-related technology diffusion channels. We find significant trade-related spillover effects within Spanish communities and from EU countries. On average, an increase in the non-domestic R&amp;D stock of 1% increases their labour productivity between 0.02% and 0.12% if related to bilateral trade pattern. Moreover, migration within Spanish communities has a negative impact ranging between −0.07% and −0.16% on labour productivity as the impact of inward migration is dominated by outward migration. There is no robust impact from FDI inflows of OECD countries in general or EU countries in particular. Finally, the domestic R&amp;D stock, physical capital and human capital are shown to be significant drivers for labour productivity in Spain no matter if non-domestic (local or foreign) spillover effects are trade-, migration- or FDI-related.
Journal: Applied Economics
Pages: 5614-5626
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1316824
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316824
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5614-5626




Template-Type: ReDIF-Article 1.0
Author-Name: Taoufik Bouraoui
Author-X-Name-First: Taoufik
Author-X-Name-Last: Bouraoui
Author-Name: Helmi Hammami
Author-X-Name-First: Helmi
Author-X-Name-Last: Hammami
Title: Does political instability affect exchange rates in Arab Spring countries?
Abstract: 
 This article investigates the dynamic relationship between political instability and exchange rates in five Arab Spring countries over the period 1992Q1–2016Q4. We include macroeconomic fundamentals to identify the transmission channels through which political instability may affect exchange rates. Based on VAR and ARDL models, our results report that political instability is associated with a significant drop in the value of domestic currencies of these countries. Economic growth is found to be the key mechanism channel. We find also that the dependence between variables is more emphasized in the short run than in the long run.
Journal: Applied Economics
Pages: 5627-5637
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1319561
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319561
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5627-5637




Template-Type: ReDIF-Article 1.0
Author-Name: Hyuk Chung
Author-X-Name-First: Hyuk
Author-X-Name-Last: Chung
Title: R&amp;D investment, cash holdings and the financial crisis: evidence from Korean corporate data
Abstract: 
 This article examines the real effects of the financial crisis in 2008 on corporate R&amp;D investment by analyzing firm-level panel data from 2005 to 2011 obtained from KIS-VALUE, a Korean corporate finance database. I estimate a dynamic panel model of R&amp;D investment that includes an after-crisis dummy to reflect the effects of the external finance supply shock after the financial crisis, an interaction term of the dummy and cash holdings to measure the marginal effect of cash holdings after the crisis, investment opportunities (sales and the q ratio) and financial positions as the debt-equity ratio. The estimation implies a negative yet relatively small impact of the credit supply shock from the financial crisis on R&amp;D investment and the mitigation of the negative impacts by cash holdings after the onset of the financial crisis, whereas the data show decreasing R&amp;D investment and sales for the whole period. Based on the data and the estimation, I find that firms were able to lessen the pressure from diminishing market demand before the crisis using external finance, but they had to use internal financial sources after the crisis smooth R&amp;D investment.
Journal: Applied Economics
Pages: 5638-5650
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1319564
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319564
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5638-5650




Template-Type: ReDIF-Article 1.0
Author-Name: Mark Andor
Author-X-Name-First: Mark
Author-X-Name-Last: Andor
Author-Name: Christopher Parmeter
Author-X-Name-First: Christopher
Author-X-Name-Last: Parmeter
Title: Pseudolikelihood estimation of the stochastic frontier model
Abstract: 
 Stochastic frontier analysis is a popular tool to assess firm performance. Almost universally it has been applied using maximum likelihood (ML) estimation. An alternative approach, pseudolikelihood (PL) estimation, which decouples estimation of the error component structure and the production frontier, has been adopted in both the non-parametric and panel data settings. To date, no formal comparison has yet to be conducted comparing these methods in a standard, parametric cross-sectional framework. We produce a comparison of these two competing methods using Monte Carlo simulations. Our results indicate that PL estimation enjoys almost identical performance to ML estimation across a range of scenarios and performance metrics, and for certain metrics, outperforms ML estimation when the distribution of inefficiency is incorrectly specified.
Journal: Applied Economics
Pages: 5651-5661
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1324611
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324611
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5651-5661




Template-Type: ReDIF-Article 1.0
Author-Name: Xu Wei
Author-X-Name-First: Xu
Author-X-Name-Last: Wei
Title: How does the diversity of investors’ beliefs affect stock price informativeness?
Abstract: 
 A growing number of studies have investigated the role of stock prices in aggregating private information and guiding resource reallocation. However, this article may be the first attempt to study how the diversity of beliefs affects stock price informativeness. The framework of the noisy rational expectations model shows that stock informativeness is determined by both the precision and use of private information in trading. If private beliefs about the value are highly diverse, the aggregate average opinion revealed in a stock’s price will be more accurate and, thus, more informative. As the price becomes more informative, however, individual investors will rely less on their private information. When this occurs, less private information will be absorbed in price, which, in turn, reduces price informativeness. Our model shows that the relationship between belief diversity and price informativeness is U-shaped in equilibrium.
Journal: Applied Economics
Pages: 515-520
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1200187
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200187
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:515-520




Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova
Author-X-Name-First: Petra
Author-X-Name-Last: Maresova
Author-Name: Vladimir Sobeslav
Author-X-Name-First: Vladimir
Author-X-Name-Last: Sobeslav
Author-Name: Ondrej Krejcar
Author-X-Name-First: Ondrej
Author-X-Name-Last: Krejcar
Title: Cost–benefit analysis – evaluation model of cloud computing deployment for use in companies
Abstract: 
 The use of cloud computing services appears to offer significant cost advantages. The most frequently mentioned advantages include investment and operating costs saving, high elasticity of services as well as increased flexibility of certain business processes. On the other hand, the adoption of cloud computing in enterprise environments is non-trivial. Understanding the organizational benefits and drawbacks is far from straightforward. The adoption of cloud computing results in a considerable amount of organizational change that will affect employees. The aim of this contribution is to conduct and describe the evaluation model of cloud computing that would be applicable in business practice for evaluating the effectiveness of such investments. The target users of this model are primarily people in companies with decision-making power in the investment field. The appropriate starting point based on the multi-criteria evaluation was the cost–benefit analysis (CBA) approach for cloud computing (CC). A multi-method approach (systematic literature review, analysis of real cloud computing services, expert interview, case study) was applied in order to develop and evaluate the formal model. We found that our model fits the practical requirements and supports decision-making in cloud computing.
Journal: Applied Economics
Pages: 521-533
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1200188
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200188
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:521-533




Template-Type: ReDIF-Article 1.0
Author-Name: Hasan A. Faruq
Author-X-Name-First: Hasan A.
Author-X-Name-Last: Faruq
Title: Corruption, product complexity and African exporters
Abstract: 
 Several studies have shown that African manufacturers perform poorly, especially in comparison to their counterparts from other developing countries. We build on these studies by (a) examining the decision to stop exporting among African manufacturers and (b) investigating whether these decisions can be linked to institutional dimensions (such as corruption). Consistent with previous studies, we observe that a significant fraction of African firms stop exporting every year. Using product complexity as a measure of an industry’s ‘sensitivity’ to corruption, we find that firms in more ‘corruption-sensitive’ industries are more likely to stop exporting if there is an increase in overall corruption in the exporting country. Firm characteristics (such as size and productivity) also seem to influence the decision to stop exporting. Our finding about the relationship between corruption and the decision to stop exporting supports the conventional wisdom that corruption is detrimental to economic performance.
Journal: Applied Economics
Pages: 534-546
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203058
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203058
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:534-546




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Law
Author-X-Name-First: Philip
Author-X-Name-Last: Law
Title: A cross-cultural study of  and auditor independence in two economies: evidence from China and the United States
Abstract: 
 This study examines the impact of guanxi on auditor independence in China and the U.S. Using panel data from 2012–2015 surveys, fixed-effects regression models are used to analyse survey data with observations drawn from a total of 1076 Big 4 and 1044 non-Big 4 auditor-years for Chinese auditors, and 1168 Big 4 and 1140 non-Big 4 auditor-years for the U.S. auditors. The results indicate that ‘guanxi with clients’ has a negative influence on perceptions of auditor independence for Chinese auditors, but not for the U.S. auditors. According to our findings, both groups agree that imposing regulations/code has a positive influence on perceptions of auditor independence. Gender has no influence on the perceived independence of either group. After controlling for social desirability bias, our results remain robust. Sensitivity analysis further increases the robustness of the findings. Our results provide empirical support for public interest theory and pose implications for Western multinational companies contemplating doing business in the Chinese economy. This investigation is particularly relevant in the wake of the rise of China as a global power. Regulators should consider the implications of this study when setting auditing guidelines and codes of ethics.
Journal: Applied Economics
Pages: 547-572
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203059
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203059
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:547-572




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Melser
Author-X-Name-First: Daniel
Author-X-Name-Last: Melser
Author-Name: Iqbal A. Syed
Author-X-Name-First: Iqbal A.
Author-X-Name-Last: Syed
Title: The product life cycle and sample representativity bias in price indexes
Abstract: 
 Official price indexes are usually calculated using matched samples of products. If products exhibit systematic price trends at different points in their life cycle then matched sample methods may introduce bias if the life cycle movement in the sample does not adequately reflect that in the population. This article explores the extent of these life cycle pricing effects and then examines the bias it can introduce in measured inflation. A large US supermarket scanner data set for six cities and six products over 12 years is used. Using hedonic methods we find that the life cycle component of price change is important across a range of products and cities. To explore the bias introduced by these movements, we use simulations that construct indexes with different sample update frequency. For indexes that are never completely resampled, we find an annual absolute bias of 0.88 and 0.59 percentage points depending upon whether we use the actual prices or prices imputed from our hedonic model. This compares with absolute biases of 0.34 and 0.10 percentage points for the corresponding cases for samples, which are re-selected annually. Thus our results provide strong support for more frequently updating index samples.
Journal: Applied Economics
Pages: 573-586
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203060
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203060
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:573-586




Template-Type: ReDIF-Article 1.0
Author-Name: R. Giuliano
Author-X-Name-First: R.
Author-X-Name-Last: Giuliano
Author-Name: B. Mahy
Author-X-Name-First: B.
Author-X-Name-Last: Mahy
Author-Name: F. Rycx
Author-X-Name-First: F.
Author-X-Name-Last: Rycx
Author-Name: G. Vermeylen
Author-X-Name-First: G.
Author-X-Name-Last: Vermeylen
Title: Does corporate social responsibility make over-educated workers more productive?
Abstract: 
 This article provides first evidence on whether corporate social responsibility (CSR) influences the productivity effects of over-education. By relying on detailed Belgian-linked employer–employee panel data covering the period 1999–2010, our empirical results exhibit a positive and significant impact of over-education on firm productivity. Moreover, they suggest that the effect of over-education is positively enhanced when the firm implements a CSR process, especially when it aims to have: (i) a good match between job requirements and workers’ educational level, (ii) a diverse workforce in terms of gender and age, and (iii) a long-term relationship with its workers. When focussing on required education and over-education, the results suggest that CSR, besides representing an innovative and proactive approach for the firms’ stakeholders, may also be beneficial for the firm itself through a bigger increase in productivity for each additional year of required education or over-education.
Journal: Applied Economics
Pages: 587-605
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203061
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203061
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:587-605




Template-Type: ReDIF-Article 1.0
Author-Name: Zhaohua Wang
Author-X-Name-First: Zhaohua
Author-X-Name-Last: Wang
Author-Name: Junwei Sun
Author-X-Name-First: Junwei
Author-X-Name-Last: Sun
Title: Analysis of interregional industry linkage and economic distance in China: evidence from the mining industry
Abstract: 
 The mining industry is an important sector of the national economy, which provides essential support for energy and other resources for economic development. Industrial linkage and economic distance are two different concepts in measuring the correlationship of different industries, in this article, we apply the model that combines both of them to analyse the industries significantly influence the mining industry. We find that electricity and heating industry, and the mining industry itself from forward linkages have greatly influenced the mining industry, and the industries from backward linkages affect mining industry are changing with industrial economic transformation. We also find resources can flow across several regions only after 2007, which means the role of geographical factors limiting long-range transportation of resources is weakening after 2007. And we explain how resources flow among various regions during 1997 ~ 2007. Based on the findings above, policy implications from the empirical results obtained are discussed.
Journal: Applied Economics
Pages: 606-617
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203062
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203062
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:606-617




Template-Type: ReDIF-Article 1.0
Author-Name: Qi-an Chen
Author-X-Name-First: Qi-an
Author-X-Name-Last: Chen
Author-Name: Fangzhou Du
Author-X-Name-First: Fangzhou
Author-X-Name-Last: Du
Title: Financial innovation, systematic risk and commercial banks’ stability in China: theory and evidence
Abstract: 
 We are dedicated to revealing the impacts of financial innovation and systematic risk on commercial banks’ stability in China, both theoretically and empirically. We established a theoretical model and derived a theoretical mechanism from this model revealing two distinctive patterns of the impacts determined by the profitability of financial derivatives: the impacts of financial innovation and systematic risk on banks’ stability in China are linear under the circumstances of a positive expected risk premium of financial derivatives; conversely, the impacts can be linear, U-shaped or cubic when the expected risk premium is negative. We make three propositions to analyse the patterns and conditions of these impacts in detail. In the empirical analysis, we do not focus only on the banking industry but also on individual commercial banks. The empirical results demonstrate that the impact of financial innovation on both the banking industry’s and most individual commercial banks’ stability are U-shaped, and the impact of systematic risk on the banking industry’s and on only one commercial bank’s stability are significantly linear, which confirms certain conditions mentioned in the theoretical propositions. Finally, the study’s conclusions are presented, and the contributions of the article to future study are also mentioned.
Journal: Applied Economics
Pages: 3887-3898
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148255
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148255
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3887-3898




Template-Type: ReDIF-Article 1.0
Author-Name: Qigang Yuan
Author-X-Name-First: Qigang
Author-X-Name-Last: Yuan
Author-Name: Yanping Zhao
Author-X-Name-First: Yanping
Author-X-Name-Last: Zhao
Author-Name: Hui Shang
Author-X-Name-First: Hui
Author-X-Name-Last: Shang
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Title: Financing constraints on the size distribution of industrial firms: the Chinese experience
Abstract: 
 We investigate whether financing constraints affect the size distribution of Chinese industrial firms from 1998 to 2007. Although the firm size distribution does not follow Zipf distribution in China, it is approaching Zipf distribution over time. In general, financing constraints have a robustly negative effect on the size distribution of firms. Furthermore, firms in Western China grow significantly more equally after controlling for financing constraints. However, the effect of financing constraints in Central China is significantly negative, and the effect of financing constraints on firm size distribution in Eastern China is insignificant. We thus expect a non-linear relationship between financing constraints and firm size distribution.
Journal: Applied Economics
Pages: 3899-3911
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148256
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148256
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3899-3911




Template-Type: ReDIF-Article 1.0
Author-Name: Cristian Barra
Author-X-Name-First: Cristian
Author-X-Name-Last: Barra
Author-Name: Giovanna Bimonte
Author-X-Name-First: Giovanna
Author-X-Name-Last: Bimonte
Author-Name: Roberto Zotti
Author-X-Name-First: Roberto
Author-X-Name-Last: Zotti
Title: On the relationship among efficiency, capitalization and risk: does management matter in local banking market?
Abstract: 
 By employing a Granger causality methodology in a panel data framework, this article explores the relationship among efficiency, capitalization and credit risk within the local Italian banking system. Focusing the attention on cooperative banks, we specifically test whether managers take more risks in highly concentrated markets (i.e. monopoly) than in partially competitive markets (i.e. duopoly). The evidence shows that in more concentrated markets, management efficiency generates a decrease in risk-taking (rejecting the bad management hypothesis) with respect to the partially competitive markets. Results are consistent with the idea that banks with less local competition are able to increase their profits by indulging more freely in rent-seeking behaviour, minimizing their risk-taking and, consequently, improving the quality of their assets through additional screening processes. The financial crisis does not seem to affect the conduct of management in terms of bank investment decisions and risk-taking. A series of robustness tests generally confirms our findings.
Journal: Applied Economics
Pages: 3912-3934
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148257
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148257
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3912-3934




Template-Type: ReDIF-Article 1.0
Author-Name: Dou Jiang
Author-X-Name-First: Dou
Author-X-Name-Last: Jiang
Title: Inflation and inflation uncertainty in China
Abstract: 
 The study examines the relationship between inflation and inflation uncertainty in China using Generalized Autoregressive Conditional Heteroscedasticity model. Particularly, this link is investigated in China’s urban and rural sectors, motivated by the substantial urban–rural divide. The results provide strong statistical supportive evidence that higher inflation raises inflation uncertainty. On the other hand, evidence on the effect of inflation uncertainty on inflation is mixed depending on the sample periods and areas examined. The understanding of inflation-uncertainty nexus in China could provide implications to policymakers in the adoption of monetary policies.
Journal: Applied Economics
Pages: 3935-3943
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148258
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148258
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3935-3943




Template-Type: ReDIF-Article 1.0
Author-Name: Dengjun Zhang
Author-X-Name-First: Dengjun
Author-X-Name-Last: Zhang
Author-Name: Yuqing Zheng
Author-X-Name-First: Yuqing
Author-X-Name-Last: Zheng
Title: The role of price risk in China’s agricultural and fisheries exports to the US
Abstract: 
 This article explores the effect of price risk on the US importers’ optimal allocation of agriculture imports between the major supplier, China, and other competing countries. We first modify a demand system to account for the impacts of own-price risk and cross-price risk, and then apply the model to 16 agricultural and fisheries commodities exported to the US. The estimation results show that importers are sensitive to price risks of 14 Chinese commodities. Comparisons between price risk–trade relations of agricultural and fisheries products and between trade effects of cross-price risk on Chinese goods and substitutes provide strong evidence for explaining the observed trade patterns. Our study highlights the importance of price stability in promoting international trade, especially from developing countries to developed countries.
Journal: Applied Economics
Pages: 3944-3960
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148259
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148259
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3944-3960




Template-Type: ReDIF-Article 1.0
Author-Name: Andrés Navarro-Galera
Author-X-Name-First: Andrés
Author-X-Name-Last: Navarro-Galera
Author-Name: Manuel Pedro Rodríguez-Bolívar
Author-X-Name-First: Manuel Pedro
Author-X-Name-Last: Rodríguez-Bolívar
Author-Name: Laura Alcaide-Muñoz
Author-X-Name-First: Laura
Author-X-Name-Last: Alcaide-Muñoz
Author-Name: María Deseada López-Subires
Author-X-Name-First: María Deseada
Author-X-Name-Last: López-Subires
Title: Measuring the financial sustainability and its influential factors in local governments
Abstract: 
 The economic crisis has led international organizations and previous research to point out the need for measuring and controlling financial sustainability in governments. Based on the main international pronouncements, this article seeks to contribute to the measurement and management of the financial sustainability, analysing the income statement evolution and identifying its influential factors. An empirical study of Spanish municipalities is then undertaken to test the relationship between the measure of the financial sustainability and three dimensions proposed by International Federation of Accountants (IFAC) (revenues, debt and services). Our findings indicate that the income statement is a good approach for the financial sustainability assessment, because it reveals relevant information about its three dimensions, allowing to identify the specific factors which could provoke sustainability problems on public services.
Journal: Applied Economics
Pages: 3961-3975
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148260
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148260
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3961-3975




Template-Type: ReDIF-Article 1.0
Author-Name: Nicoletta Berardi
Author-X-Name-First: Nicoletta
Author-X-Name-Last: Berardi
Author-Name: Patrick Sevestre
Author-X-Name-First: Patrick
Author-X-Name-Last: Sevestre
Author-Name: Marine Tépaut
Author-X-Name-First: Marine
Author-X-Name-Last: Tépaut
Author-Name: Alexandre Vigneron
Author-X-Name-First: Alexandre
Author-X-Name-Last: Vigneron
Title: The impact of a ‘soda tax’ on prices: evidence from French micro data
Abstract: 
 Based on an original data set of more than 500,000 non-alcoholic beverage price records, we evaluate the impact on consumer prices of the ‘soda tax’, an excise on drinks with added sugar or sweetener, introduced in France in January 2012. We adopt a difference in differences approach and find that the tax was gradually passed through to the prices of the taxed beverages. After 6 months of its introduction, it was fully shifted to soda prices and almost fully shifted to the prices of fruit drinks, while the pass-through for flavoured waters was incomplete. We also find that the pass-through was heterogeneous across brands and retail groups.
Journal: Applied Economics
Pages: 3976-3994
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150946
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150946
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3976-3994




Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Ricardian equivalence and the public and private saving nexus in India
Abstract: 
 This study tests the Ricardian equivalence theorem (RET) and examines the responsiveness of private saving to public saving in India. Most estimators do not provide support for the empirical validity of RET and long-run cointegration between public and private saving. The increases in household saving (HHS) seem to have been engendered by the provision of saving incentives, institution of saving schemes, self-driven motivation to save, and the precautionary accumulations induced by uncovered uncertainties in incomes, rather than by Ricardian behaviour of households. The self-imposed aversion to debt and debt bequest, borrowing and liquidity constraints, and the intertemporal smoothing of consumption have been the added catalysts that contributed to the increases in HHS. The households with binding borrowing constraints, inadequate or no insurance and uncovered uncertainties in incomes seem to have been saving more to pay for higher inflation-tax. The fiscal consolidation and generation of public saving are essential to reduce the tax burden (both explicit through fiscal taxes and implicit through inflation-tax), minimize the likelihoods of economic and financial crises, and maintain the internal and external value of domestic currency.
Journal: Applied Economics
Pages: 3579-3598
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265072
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265072
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3579-3598




Template-Type: ReDIF-Article 1.0
Author-Name: Martina Hedvicakova
Author-X-Name-First: Martina
Author-X-Name-Last: Hedvicakova
Title: Key study of bank accounts for young people with using multi-criteria optimization and fuzzy analysis
Abstract: 
 Using multi-criteria optimization and fuzzy analysis this article aims to select the most suitable bank account for young people. Two scientific questions are asked: Is the same type of student account suitable for an active as well as an inactive client? Are there any free of charge student accounts?The first part focuses on the introduction to the topic, a summary of the advantages and disadvantages of student accounts and modelling of two target groups. The second part describes the methodology of decision-making by using a fuzzy set theory. Selection of the optimum student account will be made by the transformation matrix. Subsequently, the retransformation matrix is set. The most suitable student accounts are again selected for each profile and the results are compared with the analysis in the first part. To complete the solution, the last part of the article focuses on decision-making with the uncertainty of input information. Due to ignorance of their own monthly needs and the number of payments, fuzzy sets are used. In addition to the active and passive client, a third profile will be newly created and can be identified with some of the profiles to a certain extent.
Journal: Applied Economics
Pages: 3599-3610
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265073
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265073
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3599-3610




Template-Type: ReDIF-Article 1.0
Author-Name: Alessandra Cepparulo
Author-X-Name-First: Alessandra
Author-X-Name-Last: Cepparulo
Author-Name: Juan Carlos Cuestas
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Cuestas
Author-Name: Maurizio Intartaglia
Author-X-Name-First: Maurizio
Author-X-Name-Last: Intartaglia
Title: Financial development, institutions, and poverty alleviation: an empirical analysis
Abstract: 
 The aim of this article is to analyse empirically whether the level of institutional quality influences how financial development affects poverty for a sample of developing countries covering the period from 1984 to 2012. Using an interaction term constructed as a product between financial development and institutional quality we find that the pro-poor impact of financial development decreases as the quality of institutions rises. Such a differential effect can be ascribed to the capacity of banks to provide functions that mimic those performed by an institutional framework that works well. The results of this article can be used for policy management.
Journal: Applied Economics
Pages: 3611-3622
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265074
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265074
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3611-3622




Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Kodama
Author-X-Name-First: Masahiro
Author-X-Name-Last: Kodama
Title: How strongly can industrial structural transformation affect GDP?
Abstract: 
 It is well known that when a country develops, its leading industry shifts from agriculture to non-agriculture. This industrial structural transformation has recently attracted considerable attention from scholars. Then, how strongly can this industrial structural transformation affect a country’s income? In this study, we shed light on this research question. More specifically, we measure magnitudes of the industrial structural transformation’s influence on GDP, by examining the following counterfactual GDP. We calculate a country’s counterfactual GDP when the country specializes in agriculture. If the counterfactual GDP is considerably small without the non-agricultural sector, this suggests that the industrial structural transformation from agriculture to non-agriculture is considerably important, in terms of GDP. We use Japan as our sample economy. Consequently, we find that the counterfactual GDP is surprisingly small, which suggests that the industrial structural transformation’s influence on GDP is surprisingly large. We also find that one of the main factors responsible for the surprisingly small counterfactual GDP is land, which has not been deeply examined.
Journal: Applied Economics
Pages: 3623-3633
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265075
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265075
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3623-3633




Template-Type: ReDIF-Article 1.0
Author-Name: Charles B. Moss
Author-X-Name-First: Charles B.
Author-X-Name-Last: Moss
Author-Name: Alexandre Lyambabaje
Author-X-Name-First: Alexandre
Author-X-Name-Last: Lyambabaje
Author-Name: James F. Oehmke
Author-X-Name-First: James F.
Author-X-Name-Last: Oehmke
Title: An economic evaluation of SPREAD on Rwanda’s rural population
Abstract: 
 Sustainable Partnerships to Enhance Rural Enterprises and Agricultural Development (SPREAD) was a programme to enhance the value chain for commodities in Rwanda including coffee. The implicit concept was that improving the value chain would increase the incomes for smallholders and, hence, reduce the poverty rate. The results indicate that Rwanda coffee prices increased relative to an index price for traded coffee with the implementation of SPREAD. In addition, the results indicate that participation in the coffee market at this time was associated with higher household income and lower rates of poverty.
Journal: Applied Economics
Pages: 3634-3644
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265076
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265076
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3634-3644




Template-Type: ReDIF-Article 1.0
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: Revisiting the exchange rate disconnect puzzle
Abstract: 
 One of the major anomalies in International Macroeconomics is the persistent finding that the exchange rate has no empirical relationship with a variety of macroeconomic fundamentals. Dubbed the ‘exchange rate disconnect puzzle’, this article examines this issue for five Australian dollar bilateral exchange rates, using quarterly data for the period 1984:1–2015:4. A novel feature of this article is that it departs from the extant literature by using a different approach to testing for cointegration. The results show that the exchange rates and fundamentals move together in the long run. Furthermore, the results show that fundamentals Granger cause exchange rates, both in the short run and the long run.
Journal: Applied Economics
Pages: 3645-3668
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265077
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265077
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3645-3668




Template-Type: ReDIF-Article 1.0
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Author-Name: Feng Yao
Author-X-Name-First: Feng
Author-X-Name-Last: Yao
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Title: Confucius Institute’s effects on international travel to China: do cultural difference or institutional quality matter?
Abstract: 
 This article uses a panel data of China’s inbound tourist flows from 2005 to 2015 to investigate Confucius Institute (CI)’s influence on China’s tourism. We find that CI, as a comprehensive platform for China’s foreign cultural exchange, has a significant positive effect on China’s tourist flows. The effects of CI on China’s inbound tourism are transmitted through bridging cultural gaps and promoting Chinese language, which reduces psychic distance and transaction costs. CI also stimulates China’s inbound tourist flows via reducing information asymmetry caused by different levels of institutional quality. Interestingly, we find that the heterogeneous effects of CI on China’s inbound tourism depend on institutional quality, and the effects of CI to boost China’s tourists are more prominent in departure countries with larger cultural difference.
Journal: Applied Economics
Pages: 3669-3683
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265078
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265078
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3669-3683




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Karaivanov
Author-X-Name-First: Alexander
Author-X-Name-Last: Karaivanov
Title: Non-grant microfinance, incentives and efficiency
Abstract: 
 I show that charging interest on funds provided by donors or investors to microfinance institutions (MFIs) can increase efficiency, the total number of loans and borrower welfare, compared to grant or concessionary funding. In a setting in which MFIs supply costly non-contractible effort, putting a price or raising the price of loanable funds strengthens the MFIs’ incentives to put effort in credit administration or monitoring, to extend more loans, and/or reduce overhead costs. This theoretical result is robust to several variations of the benchmark model allowing for an endogenous lending rate, motivated MFIs and endogenous overhead costs.
Journal: Applied Economics
Pages: 2509-2524
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400655
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400655
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2509-2524




Template-Type: ReDIF-Article 1.0
Author-Name: Liyan Han
Author-X-Name-First: Liyan
Author-X-Name-Last: Han
Author-Name: You Wu
Author-X-Name-First: You
Author-X-Name-Last: Wu
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: Investor attention and currency performance: international evidence
Abstract: 
 This article investigates the relationship between investor attention measured by Google search volume index and the performance of several currencies. We find that currency performance is remarkably responsive to changes in investor attention. These impacts, generated rapidly, are present over the relatively long term, especially for emerging currencies, and are intensified during periods of high uncertainty. We also demonstrate that there is a prominent asymmetric effect for the impact of attention, as past currency performance also influences attention. Typically, past currency performance can determine the magnitude of the impact on current currency performance. Moreover, we confirm that investor attention has a predictive power for forecasting emerging currency performance in the out-of-sample analysis. Further, these forecasts generate substantial economic value in the framework of asset allocation. By contrast, statistical predictability and economic value do not exist in the currencies from developed markets. These results indicate that investor attention can alter currency performance and its predictability. More broadly, our study emphasizes the potential of employing investor attention for emerging currency performance forecasting applications.
Journal: Applied Economics
Pages: 2525-2551
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403556
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403556
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2525-2551




Template-Type: ReDIF-Article 1.0
Author-Name: Pratap Chandra Pati
Author-X-Name-First: Pratap Chandra
Author-X-Name-Last: Pati
Author-Name: Parama Barai
Author-X-Name-First: Parama
Author-X-Name-Last: Barai
Author-Name: Prabina Rajib
Author-X-Name-First: Prabina
Author-X-Name-Last: Rajib
Title: Forecasting stock market volatility and information content of implied volatility index
Abstract: 
 This study investigates the incremental information content of implied volatility index relative to the GARCH family models in forecasting volatility of the three Asia-Pacific stock markets, namely India, Australia and Hong Kong. To examine the in-sample information content, the conditional variance equations of GARCH family models are augmented by incorporating implied volatility index as an explanatory variable. The return-based realized variance and the range-based realized variance constructed from 5-min data are used as proxy for latent volatility. To assess the out-of-sample forecast performance, we generate one-day-ahead rolling forecasts and employ the Mincer–Zarnowitz regression and encompassing regression. We find that the inclusion of implied volatility index in the conditional variance equation of GARCH family model reduces volatility persistence and improves model fitness. The significant and positive coefficient of implied volatility index in the augmented GARCH family models suggests that it contains relevant information in describing the volatility process. The study finds that volatility index is a biased forecast but possesses relevant information in explaining future realized volatility. The results of encompassing regression suggest that implied volatility index contains additional information relevant for forecasting stock market volatility beyond the information contained in the GARCH family model forecasts.
Journal: Applied Economics
Pages: 2552-2568
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403557
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403557
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2552-2568




Template-Type: ReDIF-Article 1.0
Author-Name: Bana Abuzayed
Author-X-Name-First: Bana
Author-X-Name-Last: Abuzayed
Author-Name: Nedal Al-Fayoumi
Author-X-Name-First: Nedal
Author-X-Name-Last: Al-Fayoumi
Author-Name: Lanouar Charfeddine
Author-X-Name-First: Lanouar
Author-X-Name-Last: Charfeddine
Title: Long range dependence in an emerging stock market’s sectors: volatility modelling and VaR forecasting
Abstract: 
 This study evaluates the sector risk of the Qatar Stock Exchange (QSE), a recently upgraded emerging stock market, using value-at-risk models for the 7 January 2007–18 October 2015 period. After providing evidence for true long memory in volatility using the log-likelihood profile test of Qu and splitting the sample and dth differentiation tests of Shimotsu, we compare the FIGARCH, HYGARCH and FIAPARCH models under normal, Student-t and skewed-t innovation distributions based on in and out-of-sample VaR forecasts. The empirical results show that the skewed Student-t FIGARCH model generates the most accurate prediction of one-day-VaR forecasts. The policy implications for portfolio managers are also discussed.
Journal: Applied Economics
Pages: 2569-2599
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403559
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403559
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2569-2599




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad A. Cheema
Author-X-Name-First: Muhammad A.
Author-X-Name-Last: Cheema
Author-Name: Gilbert V. Nartea
Author-X-Name-First: Gilbert V.
Author-X-Name-Last: Nartea
Author-Name: Kenneth R. Szulczyk
Author-X-Name-First: Kenneth R.
Author-X-Name-Last: Szulczyk
Title: Cross-sectional and time-series momentum returns and market dynamics: evidence from Japan
Abstract: 
 We test the behavioural theories of overconfidence and underreaction on cross-sectional (CS) and time-series (TS) momentum returns in the Japanese stock markets. Both CS and TS momentum returns are large and significant when the market continues in the same state and turns into losses when the market transitions to another state, consistent with the overconfidence but not the underreaction model. We find that TS conditional momentum returns exceed conditional CS momentum returns because of its active position since TS takes a net long (short) position following UP (DN) markets while CS is a zero-cost strategy irrespective of the market state. Finally, we find no relation between idiosyncratic volatility (IV) and momentum returns which is not supportive of either the overconfidence or underreaction model but implies that IV is not a significant limit to arbitrage in Japan.
Journal: Applied Economics
Pages: 2600-2612
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403560
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403560
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2600-2612




Template-Type: ReDIF-Article 1.0
Author-Name: Duane W. Rockerbie
Author-X-Name-First: Duane W.
Author-X-Name-Last: Rockerbie
Title: The invariance principle in baseball: new evidence
Abstract: 
 This article considers the change in revenue sharing in Major League Baseball that occurred prior to the 2007 season and its effects on parity via its effects on marginal revenues. Based on the results from an empirical specification for team revenue, we find evidence that the reduction in revenue sharing increased marginal revenue by more for large market clubs than for small market clubs, despite holding constant other differences in how small and large market club revenues are determined. The upshot of this result is that the modest reduction in revenue sharing could have worsened league parity by 11 to 17 points in winning percentage between small and large market clubs, although other factors affect parity as well. The well-known invariance principle in the economics of sport literature does not appear to hold; however, the current consensus of theoretical models is not confirmed.
Journal: Applied Economics
Pages: 2613-2621
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403561
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403561
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2613-2621




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tsung-Pao Wu
Author-X-Name-First: Tsung-Pao
Author-X-Name-Last: Wu
Title: PPP in the 34 OECD countries: evidence from quantile-based unit root tests with both smooth and sharp breaks
Abstract: 
 Conventional unit root tests have mostly failed to validate the PPP. Quantile-based unit root tests by previous research have provided some support for the PPP. In this article, we take an additional step and incorporate sharp shifts and smooth breaks into the quantile-based unit root test and re-examine the PPP in each of the 34 OECD countries over the period 1994:01–2016:03. We find support for the PPP in 18 countries of Austria, Chile, Estonia, Finland, France, Germany, Italy, Korea, Mexico, Netherlands, New Zealand, Poland, Portugal, Slovenia, Sweden, Switzerland, Turkey and the United Kingdom.
Journal: Applied Economics
Pages: 2622-2634
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403562
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403562
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2622-2634




Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Apergis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Apergis
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: The role of rare earth prices for consumer prices: an ignored factor?
Abstract: 
 The article explores the role of a new determinant that accounts for driving consumer prices, i.e. rare earth prices. Rare earths are used for many advanced manufacturing and military technologies. Performing a number of panel methodological approaches, panel cointegration findings support the initial insight of the authors and illustrate a positive effect on consumer prices across all rare earths.
Journal: Applied Economics
Pages: 5890-5894
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1355544
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355544
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5890-5894




Template-Type: ReDIF-Article 1.0
Author-Name: Graham Bird
Author-X-Name-First: Graham
Author-X-Name-Last: Bird
Author-Name: Wenti Du
Author-X-Name-First: Wenti
Author-X-Name-Last: Du
Author-Name: Eric Pentecost
Author-X-Name-First: Eric
Author-X-Name-Last: Pentecost
Author-Name: Thomas Willett
Author-X-Name-First: Thomas
Author-X-Name-Last: Willett
Title: Safe haven or contagion? The disparate effects of Euro-zone crises on non-Euro-zone neighbours
Abstract: 
 While there have been many studies that examine contagion within the Euro-zone, this article investigates the potential contagion from changes in the Greek sovereign risk premium over 2009–2016, as measured by the yield on 10-year government bonds, to six European countries outside of the Euro-zone all of which operated a managed float against the Euro. We find evidence of contagion to potential Euro-zone ascendants (Czech Republic, Hungary and Poland), but ‘flight to safety’ (or safe haven) effects for the United Kingdom, Sweden and Switzerland.
Journal: Applied Economics
Pages: 5895-5904
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1358445
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1358445
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5895-5904




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio M. Friedman-Soza
Author-X-Name-First: Antonio M.
Author-X-Name-Last: Friedman-Soza
Author-Name: Jorge R. Friedman
Author-X-Name-First: Jorge R.
Author-X-Name-Last: Friedman
Author-Name: Tomas A. Galvez-Silva
Author-X-Name-First: Tomas A.
Author-X-Name-Last: Galvez-Silva
Author-Name: Carlos F. Yevenes
Author-X-Name-First: Carlos F.
Author-X-Name-Last: Yevenes
Title: Sport event attendance as a function of education: evidence from the UK
Abstract: 
 This article studies the role of education in the decision to attend sporting events. The overall objective is to verify whether more educated individuals are more likely to go to sports events than their less educated counterparts. If education socializes persons to focus on sports, it would then partially offset negative alternatives such as alcohol, drug abuse and unlawful behaviours, creating a positive externality. Sport events consumption is extensive, highlighting the potential economic importance of the sports-education externality. To establish the role of education in sport attendance, this article applies a probabilistic linear regression model to data from the UK. The econometric formulation associates sport event attendance in the left hand side with education in the right hand side, while controlling for the socioeconomic variables that are known to affect a consumer’s decision to go to a sport event: gender, age, income, employment status, children, marital status, and geographical location, among others. These findings add to a somewhat limited literature on both the effect of education on sports attendance and secondarily, on the impact of other socioeconomic variables on attendance.
Journal: Applied Economics
Pages: 5905-5915
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1361007
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361007
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5905-5915




Template-Type: ReDIF-Article 1.0
Author-Name: Kamal P. Upadhyaya
Author-X-Name-First: Kamal P.
Author-X-Name-Last: Upadhyaya
Author-Name: Dharmendra Dhakal
Author-X-Name-First: Dharmendra
Author-X-Name-Last: Dhakal
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Housing prices, stock prices and the US economy
Abstract: 
 This paper studies the relationship between housing prices, stock prices, interest rates and aggregate output in the US using monthly data from 1993 to 2014. Evidence from causality tests and a variance decomposition procedure suggest that stock prices have a much larger effect on aggregate output in the US economy than do either housing prices or interest rates. Instead, the wealth effect created by changes in stock prices has a relatively large impact on US aggregate output. Separate estimations and variance decompositions for the sample periods 1993–2001, 2002–2008 and 2009–2014 show that the impact of housing prices relative to stock prices has been waning over time.
Journal: Applied Economics
Pages: 5916-5922
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1361009
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361009
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5916-5922




Template-Type: ReDIF-Article 1.0
Author-Name: Craig A. Depken
Author-X-Name-First: Craig A.
Author-X-Name-Last: Depken
Author-Name: Johnny Ducking
Author-X-Name-First: Johnny
Author-X-Name-Last: Ducking
Author-Name: Peter A. Groothuis
Author-X-Name-First: Peter A.
Author-X-Name-Last: Groothuis
Title: Career duration in the NHL: pushing and pulling on Europeans?
Abstract: 
 Using a panel of National Hockey League players from 2000 through 2013, we analyse the determinants of career length in the league. In our analysis, we include both performance variables and nationality of origin to determine their importance in determining career length. We find that European-born players have shorter careers than North American-born players holding performance constant and Russian-born players have even shorter careers than other Europeans. We further find that Russian-born players have even shorter careers than other players after the 2005 lockout. These shorter careers are consistent with both exit discrimination against European and Russian players who are pushed out of the league as well as voluntary exit by European and Russian players who are pulled out of the league due to opportunities in their home countries.
Journal: Applied Economics
Pages: 5923-5934
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1361011
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361011
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5923-5934




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa U. Karakaplan
Author-X-Name-First: Mustafa U.
Author-X-Name-Last: Karakaplan
Author-Name: Levent Kutlu
Author-X-Name-First: Levent
Author-X-Name-Last: Kutlu
Title: Endogeneity in panel stochastic frontier models: an application to the Japanese cotton spinning industry
Abstract: 
 We present a panel stochastic frontier model that handles the endogeneity problem. This model can treat the endogeneity of both frontier and inefficiency variables. We apply our method to examine the technical efficiency of Japanese cotton spinning industry. Our results indicate that market concentration is endogenous, and when its endogeneity is properly handled, it has a larger negative impact on the technical efficiency of cotton spinning plants. We find that the exogenous model substantially overestimates efficiency in concentrated markets.
Journal: Applied Economics
Pages: 5935-5939
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1363861
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363861
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5935-5939




Template-Type: ReDIF-Article 1.0
Author-Name: Yosef Bonaparte
Author-X-Name-First: Yosef
Author-X-Name-Last: Bonaparte
Author-Name: Frank J Fabozzi
Author-X-Name-First: Frank J
Author-X-Name-Last: Fabozzi
Title: A flexible approach to estimate the equity premium
Abstract: 
 In this article, we estimate the risk aversion for households accounting for their lifetime consumption risk. Households take into account the overall lifetime uninsured consumption risk when optimizing their resources, which based on micro data varies across households. Thus, representing households’ consumption by merging cross-sectional micro data into the single Euler equation (the common approach for estimating risk aversion based on consumption-based asset pricing theory) may be too rough an approximation, leading to biased results with respect to risk aversion. Our results suggest that consumption-based asset pricing models that were rejected in several studies do in fact fit the data when we account for households’ lifetime consumption risk. This finding also has implications for long-run aggregate consumption-based asset pricing models.
Journal: Applied Economics
Pages: 5940-5950
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1363862
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363862
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5940-5950




Template-Type: ReDIF-Article 1.0
Author-Name: Dominik Schreyer
Author-X-Name-First: Dominik
Author-X-Name-Last: Schreyer
Title: Football spectator no-show behaviour in the German Bundesliga
Abstract: 
 Despite an extensive literature on stadium attendance demand, our understanding of those factors shaping spectator no-show behaviour is rudimentary at best. Here, we explore such behaviour by using a comprehensive two-step approach: First, we examine the determinants of no-show behaviour in the German Bundesliga between the four seasons 2014–15 and 2017–18; Second, because our initial results imply that spectator no-show behaviour is more prominent among season ticket holders (STHs), we exploit additional survey data to understand individual STH no-show appearances better. Our results suggest that club managers interested in reducing the no-show rate should rethink existing season ticket strategies.
Journal: Applied Economics
Pages: 4882-4901
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602709
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602709
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4882-4901




Template-Type: ReDIF-Article 1.0
Author-Name: Gaoxiu Qiao
Author-X-Name-First: Gaoxiu
Author-X-Name-Last: Qiao
Author-Name: Pengfei Zhao
Author-X-Name-First: Pengfei
Author-X-Name-Last: Zhao
Author-Name: Weiping Li
Author-X-Name-First: Weiping
Author-X-Name-Last: Li
Title: Time varying price discovery of the New Third Board market in China: does the market-making system help?
Abstract: 
 This paper examines whether the market-making system helps to improve the price discovery ability of New Third Board (NTB) market in China. We first estimate the time-varying coefficients error correction models, then apply common factor weight method to quantify the time-varying price discovery contributions, and finally explore the impacts of trading volume and volatility to price discovery contributions. Empirical results show that both markets have time-varying characteristic in terms of the magnitudes and directions of the equilibrium price adjustment due to error correction term. The Shanghai Composite Index, SZSE Component Index, and SME Index are found to lead in price discovery, while NTB exhibits the leadership on the GEM Index. Volume and volatility have significant influence on the price discovery contribution. The NTB contribution is positively related to its own trading activity, negatively related to the trading activity of Shanghai and Shenzhen stock markets, while negatively correlated with the volatility of both markets. In comparison, trading activity of SZSE Component Index and volatility of GEM Index have the greatest negative impacts on the contribution of NTB market. As an important part of China’s multi-level capital market, the pricing mechanism of the NTB market needs further to be improved.
Journal: Applied Economics
Pages: 4902-4919
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602711
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602711
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4902-4919




Template-Type: ReDIF-Article 1.0
Author-Name: Lior Cohen
Author-X-Name-First: Lior
Author-X-Name-Last: Cohen
Author-Name: Marta Gómez-Puig
Author-X-Name-First: Marta
Author-X-Name-Last: Gómez-Puig
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Title: Has the ECB’s monetary policy prompted companies to invest, or pay dividends?
Abstract: 
 This paper focuses on the influence of the European Central Bank’s (ECB) monetary policies on non-financial firms. It sheds light on non-financial firms’ decisions regarding leverage, and on how the ECB’s conventional and unconventional policies may have affected them. The paper also examines how these policies influenced non-financial firms’ decisions on capital allocation – primarily capital spending and shareholder distribution (for example, dividends and share repurchases). We use an exhaustive and unique dataset comprised of income statements and balance sheets of leading non-financial firms operating in the European Economic and Monetary Union (EMU). The main results suggest that ECB’s monetary policies have encouraged firms to raise their debt burden, especially after the global recession of 2008. Finally, the ECB’s policies, especially after 2011, also seem to have led non-financial firms to allocate more resources not just to capital spending but to shareholder distribution as well.
Journal: Applied Economics
Pages: 4920-4938
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602715
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602715
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4920-4938




Template-Type: ReDIF-Article 1.0
Author-Name: Yang-Chao Wang
Author-X-Name-First: Yang-Chao
Author-X-Name-Last: Wang
Author-Name: Jui-Jung Tsai
Author-X-Name-First: Jui-Jung
Author-X-Name-Last: Tsai
Author-Name: Lanxin Lu
Author-X-Name-First: Lanxin
Author-X-Name-Last: Lu
Title: The impact of Chinese monetary policy on co-movements between money and capital markets
Abstract: 
 From 2010 to 2017, with interest rate liberalization and capital market development in China, the impact of monetary policies on China’s financial markets underwent continuous evolution. Using the DCC-GARCH model, this study investigates the transmission process of monetary policies from the money market to capital markets (stock and bond markets). The results show that in the early stage the instability of the money and stock markets and the downturn in the bond market are primarily caused by the block of monetary policy transmission and the paucity of fund sources in the capital markets. Subsequently, the outbreak of the 2013 money shortage and the 2015 stock market crash are also closely related to monetary policies. In the later periods, the money and stock markets maintain a low degree of correlation for a long time, reducing the impact of destabilizing factors on the stock market. By contrast, with the advancement of interest rate reform and the optimization of bond market structure, the bond market is highly relevant to the money market. The central bank regulates the bond market more effectively using both traditional and innovative monetary policy tools.
Journal: Applied Economics
Pages: 4939-4955
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1606407
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606407
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4939-4955




Template-Type: ReDIF-Article 1.0
Author-Name: Poornima Varma
Author-X-Name-First: Poornima
Author-X-Name-Last: Varma
Title: Adoption and the impact of system of rice intensification on rice yields and household income: an analysis for India
Abstract: 
 This paper examines the determinants and impacts of the adoption of five mutually exclusive practices System of Rice Intensification (SRI) on yields and household incomes using a multinomial endogenous treatment effects model. Farm household survey data is collected from selected districts of three States of India. Results suggest that the decision to adopt SRI is a function of experience in terms of age, farm assets, irrigation facility and information about SRI. The analysis showed that small and marginal farmers are more likely to adopt SRI as compared to large farmers. The National Food Security Mission (NFSM) came out to be significant and positive only in the case of few practices in some States. The welfare outcome results showed that the adoption increased the yield and income of three out of four practices-plant plus water, plant plus soil and plant plus water plus soil management. Briefly, the results show that the adoption of SRI especially full adoption of SRI has greater impact on the yield and income.
Journal: Applied Economics
Pages: 4956-4972
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1606408
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606408
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4956-4972




Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Schleich
Author-X-Name-First: Joachim
Author-X-Name-Last: Schleich
Author-Name: Thomas Hillenbrand
Author-X-Name-First: Thomas
Author-X-Name-Last: Hillenbrand
Title: Residential water demand responds asymmetrically to rising and falling prices
Abstract: 
 This paper econometrically estimates residential water consumption in Germany between 2007 and 2013 based on a panel of almost 3000 supply areas. In particular, the analysis distinguishes periods of rising and falling water and sewage water prices. The short-run (long-run) price elasticity is estimated at around 4.2% (13%), but water demand appears to respond asymmetrically to rising and falling prices. When prices are rising, the short-run (long-run) price elasticity is around 6.5% (17%). When prices are falling, the short-run price elasticity is not statistically different from zero, and the long-run price elasticity is estimated at around 12%. Additional results illustrate that employing average prices instead of marginal prices results in substantially overestimating the price elasticity. These findings are particularly relevant for utilities and regulators planning to alter the tariff structure towards a higher fixed fee and a lower volumetric fee.
Journal: Applied Economics
Pages: 4973-4981
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1606412
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606412
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4973-4981




Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Jeremy Nguyen
Author-X-Name-First: Jeremy
Author-X-Name-Last: Nguyen
Author-Name: Reza Hajargasht
Author-X-Name-First: Reza
Author-X-Name-Last: Hajargasht
Title: Incorporating daily market uncertainty data into a conventional short-run dynamic model: the case of the black-market exchange rate in Iran
Abstract: 
 The effect of market uncertainty on a country’s currency, while widely recognized, is either omitted from mainstream models or addressed using low-frequency series, which are typically subject to aggregation bias and substantial lags. In this article, we propose a new mixed-data sampling (MIDAS) modelling framework that enables us to incorporate the asymmetric daily effects of market uncertainty in a conventional monthly error correction model. We achieve this by proxying market uncertainty via the value of a ‘safe haven’ asset (gold) that investors reallocate towards in the face of heightened market risk. We apply the model to the Iranian black-market exchange rate, using a mix of the daily price of gold (28 June 2010–19 August 2018) and monthly data (July 2010-July 2018) on relative prices. Our results indicate that purchasing power parity (PPP) holds despite the recent unprecedented depreciations in the Iranian currency arising from several rounds of international sanctions. We also find that increased uncertainty can lead to instantaneous and substantial depreciations, whereas stabilization back towards the PPP path is much more sluggish.
Journal: Applied Economics
Pages: 4982-4991
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1607245
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1607245
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4982-4991




Template-Type: ReDIF-Article 1.0
Author-Name: Jos&#xE9; Manuel Cordero
Author-X-Name-First: Jos&#xE9; Manuel
Author-X-Name-Last: Cordero
Author-Name: Francisco Pedraja
Author-X-Name-First: Francisco
Author-X-Name-Last: Pedraja
Title: The effect of financial education training on the financial literacy of Spanish students in PISA
Abstract: 
 The aim of this paper is to analyze the effect of financial education training on Spanish secondary students. To do this, we rely on data from PISA 2012. This included an assessment of students&#x2019; financial literacy for the first time. In order to identify the causal effect of financial education courses, we employ a difference-in-differences (DiD) approach to compare the outcomes of students receiving and not receiving education on financial concepts for two different subjects (financial literacy and reading comprehension). Our results suggest that financial education programs only have an impact if they are taught as part of other subjects, i.e. by means of a cross-curricular approach.
Journal: Applied Economics
Pages: 1679-1693
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528336
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528336
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1679-1693




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriela Best
Author-X-Name-First: Gabriela
Author-X-Name-Last: Best
Author-Name: Pavel Kapinos
Author-X-Name-First: Pavel
Author-X-Name-Last: Kapinos
Title: Is the Fed&#x2019;s news perception different from the private sector&#x2019;s?
Abstract: 
 The recent literature on monetary policy has dedicated considerable attention to modelling agents&#x2019; processing of information about the future in real time. This paper contributes to this growing strand by investigating the implied differences in the so-called news shocks estimated from the standard New Keynesian dynamic stochastic general equilibrium (DSGE) model using the real-time data sets from the Survey of Professional Forecasters (SPF) and the Federal Reserve&#x2019;s Greenbook (GB) forecasts. Alternative specifications with either the SPF or GB forecasts aim to delineate the differences in the private sector&#x2019;s and the Fed&#x2019;s expectations of future macroeconomic outcomes and identify the differences in their perception of news shocks. Our results indicate that while the demand news shocks have very similar distributions in the two datasets, the monetary and cost-push news shocks from the models estimated on the GB data tend to be larger than those from the SPF. These findings suggest that the Federal Reserve&#x2019;s forecasting methods allow for more variation in future outcomes than the SPF&#x2019;s. These findings mesh well with the extant literature on the superiority of the Fed&#x2019;s forecasts relative to the private sector&#x2019;s and provide a structural explanation for the source of this superiority.
Journal: Applied Economics
Pages: 1694-1710
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528337
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528337
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1694-1710




Template-Type: ReDIF-Article 1.0
Author-Name: Debkumar Chakrabarti
Author-X-Name-First: Debkumar
Author-X-Name-Last: Chakrabarti
Author-Name: Pradeepta Sethi
Author-X-Name-First: Pradeepta
Author-X-Name-Last: Sethi
Author-Name: Sankalpa Bhattacharjee
Author-X-Name-First: Sankalpa
Author-X-Name-Last: Bhattacharjee
Title: Directed credit, financial development and financial structure: theory and evidence
Abstract: 
 The recent initiative of the RBI in reviving the policy of directed credit allocation in a period dominated by the neoliberal philosophy necessitates reconsideration of the role of policy-directed credit allocation process on financial development and financial structure of firms. Introducing certain policy parameters, the paper attempts to model how financial development-financial structure interlinkage is influenced by the liberalization policies of the government. The theoretical construct is empirically verified using both aggregated and disaggregated (firm-level) data comprising a panel of 932 Indian manufacturing firms. Findings reveal that following the liberalization measures in the early 1990s, there has been a structural shift in the debt&#x2013;equity ratio of firms, with equity market activities assuming prominence over time. As regards financial development, it has been observed that the withdrawal of DFIs specialized in term-lending activities in the early 2000s led to a significant increase in the degree of financing constraints faced by the manufacturing firms. This contradicts the basic premise of financial liberalization. The paper argues that under certain conditions, government intervention in the form of directed credit programmes would not only act as an effective instrument in ushering financial development, but also provide important guidelines in ensuring sustainability of institutions.
Journal: Applied Economics
Pages: 1711-1729
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528338
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1711-1729




Template-Type: ReDIF-Article 1.0
Author-Name: Mario Bossler
Author-X-Name-First: Mario
Author-X-Name-Last: Bossler
Author-Name: Jakob Wegmann
Author-X-Name-First: Jakob
Author-X-Name-Last: Wegmann
Title: The German generation internship and the minimum wage introduction: evidence from big data
Abstract: 
 The new German minimum wage applies a specific exemption clause for internships, where internships that last up to three months are exempted while internships that exceed three months are due to the minimum wage. Negative minimum wage effects on internships are heavily debated as internships are mostly non-productive. Difference-in-difference analyses that exploit establishment and regional variation in the bite of the minimum wage do not show a reduction in the number of internships. In addition, we pursue an innovative approach by using Google search data to analyse how the search intensity for internships changed in course of the minimum wage introduction. Difference-in-difference comparisons with other countries in Europe do not reveal an effect on the search for internship positions in general, but we observe a significant reduction in Google search for &#x2018;generation internship&#x2019;. This suggests that the underlying societal phenomenon of a generation entering internships without a perspective for regular jobs has lost in relevance.
Journal: Applied Economics
Pages: 1730-1747
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528339
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528339
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1730-1747




Template-Type: ReDIF-Article 1.0
Author-Name: Samuelson Appau
Author-X-Name-First: Samuelson
Author-X-Name-Last: Appau
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Lisa Farrell
Author-X-Name-First: Lisa
Author-X-Name-Last: Farrell
Title: Social integration and subjective wellbeing
Abstract: 
 Using data from the UK Community Life Survey, we examine the relationship between social integration and subjective wellbeing. We measure social integration along various dimensions, including frequency of interaction with one&#x2019;s neighbors, perceived strength of belonging to one&#x2019;s immediate neighborhood and country, length of residence in a neighborhood, and trust in neighbors. Overall, we find that social integration is associated with higher levels of subjective wellbeing. Specifically, our results suggest that an increase in the frequency of interaction with one&#x2019;s neighbors is associated with an increase in subjective wellbeing. Similarly, an increase in respondent&#x2019;s perceived strength of belonging to their immediate neighborhood (and country) is associated with an increase in subjective wellbeing. We further discover that an increase in the length of residence in a neighborhood is associated with an increase in subjective wellbeing, and this is also the case for an increase in the level of trust in one&#x2019;s neighbour.
Journal: Applied Economics
Pages: 1748-1761
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528340
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528340
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1748-1761




Template-Type: ReDIF-Article 1.0
Author-Name: Djeneba Doumbia
Author-X-Name-First: Djeneba
Author-X-Name-Last: Doumbia
Title: The quest for pro-poor and inclusive growth: the role of governance
Abstract: 
 This paper analyses the role of good governance in fostering pro-poor and inclusive growth. Using a sample of 112 countries over 1975&#x2013;2012, it shows that growth is generally pro-poor. However, growth has not been inclusive, as illustrated by a decline in the bottom 20 percent of the income distribution. While all features of good governance support income growth and reduce poverty, only government effectiveness and the rule of law are found to enhance inclusive growth. The investigation of the determinants of pro-poor and inclusive growth highlights that education, infrastructure improvement, and financial development are the key factors in poverty reduction and inclusive growth. Relying on the panel smooth transition regression (PSTR) model, the paper identifies a nonlinear relationship between governance and pro-poor growth, while the impact of governance on inclusive growth appears to be linear.
Journal: Applied Economics
Pages: 1762-1783
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529392
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529392
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1762-1783




Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Hori
Author-X-Name-First: Masahiro
Author-X-Name-Last: Hori
Author-Name: Keiko Murata
Author-X-Name-First: Keiko
Author-X-Name-Last: Murata
Title: Is there a retirement consumption puzzle in Japan? Evidence from a household panel dataset spanning several years
Abstract: 
 Using a unique long-run panel of Japanese households, this paper examines the changes in consumption at retirement (&#x2018;the retirement-consumption puzzle&#x2019;). Our analysis shows that households&#x2019; expenditure does decline after the retirement of the household head and that changes in household composition at retirement cannot fully account for this decline. Changes in life-style/preferences after retirement also do not appear to explain a salient feature of the expenditure decline, namely, the strong correlation between the magnitudes of the expenditure decline and the income decline upon retirement. On the other hand, our finding that the expenditure decline is larger for households with smaller savings and/or that experienced a large unexpected income decline is broadly consistent with the standard LC/PIH augmented with unexpected shocks, while it does not rule out the possibility that there is a relatively small subset of households that are myopic and lack sufficient saving discipline.
Journal: Applied Economics
Pages: 1784-1798
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529393
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529393
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1784-1798




Template-Type: ReDIF-Article 1.0
Author-Name: Jiao Zhang
Author-X-Name-First: Jiao
Author-X-Name-Last: Zhang
Author-Name: Qingcheng Zeng
Author-X-Name-First: Qingcheng
Author-X-Name-Last: Zeng
Title: Modelling the volatility of the tanker freight market based on improved empirical mode decomposition
Abstract: 
 In this article, a method based on empirical mode decomposition (EMD) and BEKK–Multivariate GARCH (MVGARCH) is developed to analyse the volatility of the tanker freight market. First, the initial time series of tanker freight rates is decomposed into several independent intrinsic mode functions (IMFs). Next, the IMFs are composed as three components by an improved EMD: the long-term trend time series that represents the benchmark freight rates of the tanker freight market, the high-frequency time series that reflects the short-term supply–demand relation and the low-frequency time series caused by extreme events. Based on the results of EMD, the volatility spillover effects between the freight rates of Aframax, Suezmax and Very Large Crude Carrier (VLCC) markets are tested by the BEKK–MVGARCH model. The results indicate that there are volatility spillover effects between the reconstructed components, although the volatility spillover effects between the original freight series are not significant. The improved EMD method contributes to the retention of the economic characteristics of the original time series, thereby providing a vital approach for tanker freight market analysis. Furthermore, the potential volatility spillover among different sub-markets can be investigated through the integration of EMD and the BEKK–MVGARCH.
Journal: Applied Economics
Pages: 1655-1667
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223823
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223823
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1655-1667




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Rohde
Author-X-Name-First: Nicholas
Author-X-Name-Last: Rohde
Author-Name: KK Tang
Author-X-Name-First: KK
Author-X-Name-Last: Tang
Author-Name: Lars Osberg
Author-X-Name-First: Lars
Author-X-Name-Last: Osberg
Title: The self-reinforcing dynamics of economic insecurity and obesity
Abstract: 
 This article models the dynamic effects of economic insecurity on body weight. Using Australian panel data, we infer an individual’s level of economic insecurity as a function of exposure to various financial risks and employ regression equations to explore its effect upon current period body mass index (BMI) scores. Estimates reveal that a sustained standard deviation increase in economic insecurity raises an individual’s BMI at a rate of approximately 0.35 units per year. Quantile regressions are then used to estimate the sensitivity of body weight to insecurity at different percentiles of the distribution and we find that persons who are overweight and obese are much more seriously affected. This implies that shocks that make individuals more financially vulnerable can generate harmful self-sustaining cycles of risk and weight gain. We also model the dynamics of insecurity and show that it is a persistent phenomenon for persons with high levels of exposure and lower incomes. This finding indicates that persons of lower socio-economic status are more likely to encounter vicious cycles of increasing insecurity and obesity, which partially explains why weight-related health problems are unusually highly concentrated amongst these individuals.
Journal: Applied Economics
Pages: 1668-1678
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223826
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223826
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1668-1678




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Garcia-del-Barrio
Author-X-Name-First: Pedro
Author-X-Name-Last: Garcia-del-Barrio
Author-Name: Hugo Zarco
Author-X-Name-First: Hugo
Author-X-Name-Last: Zarco
Title: Do movie contents influence box-office revenues?
Abstract: 
 This article studies the determinants of box-office revenues in the motion picture industry. We first adopt an approach that takes into account quality signals (e.g. talent concentration, movie budget and Oscar awards, among others) to analyse the empirical relationship between category-specific parenthood ratings (R-ratings) and box-office revenues. Then, by matching movie contents with economic performance records, our original approach reveals that offensive contents like profanity or nudity may be a hindrance to achieve economic returns, while violent contents seems to enhance box-office revenues. Further research is needed to clarify the interaction in this regard between production budget and movie contents.
Journal: Applied Economics
Pages: 1679-1688
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223828
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223828
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1679-1688




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Enrique Pedauga
Author-X-Name-First: Luis Enrique
Author-X-Name-Last: Pedauga
Author-Name: Lucien David Pedauga
Author-X-Name-First: Lucien David
Author-X-Name-Last: Pedauga
Author-Name: Blanca L. Delgado-Márquez
Author-X-Name-First: Blanca L.
Author-X-Name-Last: Delgado-Márquez
Title: Relationships between corruption, political orientation, and income inequality: evidence from Latin America
Abstract: 
 This research sheds light on the analysis of the impact of corruption and political orientation on income distribution in Latin America. Although it has been theoretically demonstrated that corruption worsens the income distribution, the empirical evidence has yielded ambiguous results based on biased estimates not considering a measurement error in the estimation of inequality. This article fills this gap by correcting the previous measurement error bias in the fixed-effects estimation. Additionally, political orientation and its relationship with income inequality are also investigated. The sample covers 18 Latin American countries between 1996 and 2012. Results reveal that corruption increases income inequality.
Journal: Applied Economics
Pages: 1689-1705
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223830
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223830
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1689-1705




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas W. Zuehlke
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Zuehlke
Title: Use of quadratic terms in Type 2 Tobit models
Abstract: 
 A Type 2 Tobit model with a common set of regressors in the selection and regression equations is identified by the nonlinearity of the distribution function. The estimates are relatively less precise than in cases where there are at least some distinct regressors in the two equations. In an attempt to overcome this problem, some authors introduce quadratic terms into one or both equations. As this does not add any new statistical information, just a deterministic function of an existing regressor, the sceptic would question how this could improve the reliability of the estimates. This article shows that arbitrary use of quadratics is not without consequence. It increases the chances of getting either multiple roots, no root or a local root where a global does not exist. The nature of this problem is illustrated with Monte Carlo methods as well as several examples from the literature.
Journal: Applied Economics
Pages: 1706-1714
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223831
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223831
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1706-1714




Template-Type: ReDIF-Article 1.0
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Author-Name: Riaan de Jongh
Author-X-Name-First: Riaan
Author-X-Name-Last: de Jongh
Title: A comparison of risk aggregation estimates using copulas and Fleishman distributions
Abstract: 
 Determining banks’ expected losses (EL) is straightforward because they are calculated using a linear combination of credit risk-related measures. Non-linear metrics, like economic capital (EC), pose considerable implementation challenges including computation complexity and a lack of adequate risk aggregation and attribution techniques when multiple portfolios and/or product segmentations are involved. Copulas have been used to overcome these problems, but the Fleishman procedure, which uses a polynomial transformation to generate non-normal data, may provide a more tractable alternative. In this article, EC simulation estimates using the extended (multivariate) Fleishman method and the Gumbel copula are compared. The Fleishman approach is found to be easier to implement than the Gumbel approach and provides comparable results when the correlation and concordance between losses are low. The Fleishman method preserves the first four moments and two measures of dependence (Pearson’s $$\rho $$ρ
 and Kendal’s $$\tau $$τ
); the copula approach preserves only the first two moments of the empirical loss distributions.
Journal: Applied Economics
Pages: 1715-1731
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223832
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223832
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1715-1731




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Chletsos
Author-X-Name-First: Michael
Author-X-Name-Last: Chletsos
Author-Name: Stelios Roupakias
Author-X-Name-First: Stelios
Author-X-Name-Last: Roupakias
Title: Native-immigrant wage differentials in Greece: discrimination and assimilation
Abstract: 
 This article applies the Blinder–Oaxaca methodology in order to dissect the average earnings differentials between Greek workers and three different groups of immigrants into a part attributed to differences in characteristics and a part due to discrimination. It also seeks to identify the effect of assimilation (i.e. postmigration human capital) on immigrants’ earnings. We use information about 8429 individuals, of which 1185 are immigrants. The data are drawn from the Greek Labour Force Survey (2009). Our results suggest that discrimination is significantly higher for immigrants originating from non-EU countries than it is for EU foreigners, while it is negative for those who terminated education in Greece. Also, there is evidence that (i) post-migration human capital is a significant determinant of immigrants earnings, (ii) there is limited transferability of skills between sending countries and Greece and (iii) education is the main determinant of the wage gap between natives and immigrants.
Journal: Applied Economics
Pages: 1732-1736
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223833
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223833
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1732-1736




Template-Type: ReDIF-Article 1.0
Author-Name: Sharif Mozumder
Author-X-Name-First: Sharif
Author-X-Name-Last: Mozumder
Author-Name: M. Humayun Kabir
Author-X-Name-First: M. Humayun
Author-X-Name-Last: Kabir
Author-Name: Michael Dempsey
Author-X-Name-First: Michael
Author-X-Name-Last: Dempsey
Title: Pricing and hedging options with GARCH-stable proxy volatilities
Abstract: 
 This article considers modelling nonnormality in return with stable Paretian (SP) innovations in generalized autoregressive conditional heteroskedasticity (GARCH), exponential generalized autoregressive conditional heteroskedasticity (EGARCH)  and Glosten-Jagannathan-Runkle generalized autoregressive conditional heteroskedasticity (GJR-GARCH) volatility dynamics. The forecasted volatilities from these dynamics have been used as a proxy to the volatility parameter of the Black–Scholes (BS) model. The performance of these proxy-BS models has been compared with the performance of the BS model of constant volatility. Using a cross section of S&amp;P500 options data, we find that EGARCH volatility forecast with SP innovations is an excellent proxy to BS constant volatility in terms of pricing. We find improved performance of hedging for an illustrative option portfolio. We also find better performance of spectral risk measure (SRM) than value-at-risk (VaR) and expected shortfall (ES) in estimating option portfolio risk in case of the proxy-BS models under SP innovations.Abbreviation: generalized autoregressive conditional heteroskedasticity (GARCH), exponential generalized autoregressive conditional heteroskedasticity (EGARCH) and Glosten-Jagannathan-Runkle generalized autoregressive conditional heteroskedasticity (GJR-GARCH)
Journal: Applied Economics
Pages: 6034-6046
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1488057
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488057
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6034-6046




Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Han-Chiang Ho
Author-X-Name-First: Han-Chiang
Author-X-Name-Last: Ho
Author-Name: Su-Ping Liu
Author-X-Name-First: Su-Ping
Author-X-Name-Last: Liu
Title: Score-driven Markov-switching EGARCH models: an application to systematic risk analysis
Abstract: 
 We introduce new Markov-switching (MS) dynamic conditional score (DCS) exponential generalized autoregressive conditional heteroscedasticity (EGARCH) models, to be used by practitioners for forecasting value-at-risk (VaR) and expected shortfall (ES) in systematic risk analysis. We use daily log-return data from the Standard &amp; Poor’s 500 (S&amp;P 500) index for the period 1950–2016. The analysis of the S&amp;P 500 is useful, for example, for investors of (i) well-diversified US equity portfolios; (ii) S&amp;P 500 futures and options traded at Chicago Mercantile Exchange Globex; (iii) exchange traded funds (ETFs) related to the S&amp;P 500. The new MS DCS-EGARCH models are alternatives to of the recent MS Beta-t-EGARCH model that uses the symmetric Student’s t distribution for the error term. For the new models, we use more flexible asymmetric probability distributions for the error term: Skew-Gen-t (skewed generalized t), EGB2 (exponential generalized beta of the second kind) and NIG (normal-inverse Gaussian) distributions. For all MS DCS-EGARCH models, we identify high- and low-volatility periods for the S&amp;P 500. We find that the statistical performance of the new MS DCS-EGARCH models is superior to that of the MS Beta-t-EGARCH model. As a practical application, we perform systematic risk analysis by forecasting VaR and ES.Abbreviation Single regime (SR); Markov-switching (MS); dynamic conditional score (DCS); exponential generalized autoregressive conditional heteroscedasticity (EGARCH); value-at-risk (VaR); expected shortfall (ES); Standard &amp; Poor's 500 (S&amp;P 500); exchange traded funds (ETFs); Skew-Gen-t (skewed generalized t); EGB2 (exponential generalized beta of the second kind); NIG (normal-inverse Gaussian); log-likelihood (LL); standard deviation (SD); partial autocorrelation function (PACF); likelihood-ratio (LR); ordinary least squares (OLS); heteroscedasticity and autocorrelation consistent (HAC); Akaike information criterion (AIC); Bayesian information criterion (BIC); Hannan-Quinn criterion (HQC).
Journal: Applied Economics
Pages: 6047-6060
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1488073
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488073
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6047-6060




Template-Type: ReDIF-Article 1.0
Author-Name: Kazumine Kondo
Author-X-Name-First: Kazumine
Author-X-Name-Last: Kondo
Title: Does branch network size influence positively the management performance of Japanese regional banks?
Abstract: 
 This article investigates whether branch network expansions by Japanese regional banks influence their management performances positively at a time when management environments surrounding regional financial institutions have become increasingly severe due to the population decreases and shrinkage of regional economies. Specifically, the effects of numbers of regional bank branches on their credit businesses and profits are empirically examined. The results indicated that regional banks with more branches can increase their loans and bills discounted as well as their small and mid-sized enterprises loans and bills discounted. Thus, establishing more branches is effective in increasing the total sum of loans and bills discounted by each bank because regional banks with many branches can make contact with more customers. On the other hand, return on assets and return on equity of regional banks with more branches were found to be lower. Therefore, regarding the cost performance of regional banks, establishing too many branches and maintaining branch networks that are too large can have negative effects on regional banks.
Journal: Applied Economics
Pages: 6061-6072
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489114
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489114
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6061-6072




Template-Type: ReDIF-Article 1.0
Author-Name: George S. Ford
Author-X-Name-First: George S.
Author-X-Name-Last: Ford
Title: Regulation and investment in the U.S. telecommunications industry
Abstract: 
 Reversing a two-decade deregulatory trend of telecommunications services, in 2010 U.S. regulators embarked on an aggressive regulatory agenda including, but not limited to, the regulation of high-speed Internet services under the auspices of net neutrality using utility-style regulations codified in the 1930s. Firms, regulators, and analysts feared a reduction in capital spending, contradicting established policy goals of expanding Internet availability and adoption. In this article, a difference-in-differences regression model augmented with randomization inference is applied to government data on capital spending in telecommunications. Large negative effects on investment are found. The estimated effects are robust across changes in estimation periods and model specifications, and multiple tests of the model’s assumptions lend credibility to the findings.
Journal: Applied Economics
Pages: 6073-6084
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489115
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489115
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6073-6084




Template-Type: ReDIF-Article 1.0
Author-Name: Huei-Wen Lin
Author-X-Name-First: Huei-Wen
Author-X-Name-Last: Lin
Author-Name: Huei-Fu Lu
Author-X-Name-First: Huei-Fu
Author-X-Name-Last: Lu
Title: A longitudinal assessment on the economic effects of hosting major sporting events
Abstract: 
 Hosting major sporting events (MSEs) has become a globalized strategy for many countries. This paper is to incorporate event study and dynamic panel data analysis with annual secondary data to examine and clarify the long-term economic effects of host countries that had hosted the Asian Games and the Olympic Games from 1950 to 2014. The results indicate that hosting MSEs to create positive economic effects like the real economic growth rate, investment, employment and international trade may be a myth even for developing countries. The evidences can provide the sport management or authority with longitudinal and comprehensive elaboration for biding or hosting MSEs in the future.
Journal: Applied Economics
Pages: 6085-6099
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489117
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489117
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6085-6099




Template-Type: ReDIF-Article 1.0
Author-Name: Zheng Qiao
Author-X-Name-First: Zheng
Author-X-Name-Last: Qiao
Author-Name: Ken Y. Chen
Author-X-Name-First: Ken Y.
Author-X-Name-Last: Chen
Author-Name: Shengmin Hung
Author-X-Name-First: Shengmin
Author-X-Name-Last: Hung
Title: Professionals inside the board room: accounting expertise of directors and dividend policy
Abstract: 
 Directors’ personal attributes have significant impacts on governance effectiveness. We study whether directors’ accounting expertise affects corporate financial policy and investigate dividend in specific. We construct a dataset of audit committee directors’ accounting expertise for Standard &amp; Poor 500 firms from 2005 to 2012. We first verify directors’ monitoring roles by showing that firms with accounting expert sitting on their audit committees demonstrate stronger accounting conservatism. In our main tests, we find that these firms maintain lower dividend payment level, which are less sensitive to earnings volatility. This suggests directors’ advisory roles in financial policy. We further show that our accounting expertise cannot be subsumed by management ability. In additional test, we further examine the baseline results conditional on analyst forecast error. Our findings highlight the importance of directors’ professional expertise in fulfilling their governance roles.
Journal: Applied Economics
Pages: 6100-6111
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489501
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489501
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6100-6111




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Asche
Author-X-Name-First: Frank
Author-X-Name-Last: Asche
Author-Name: Kristin H. Roll
Author-X-Name-First: Kristin H.
Author-X-Name-Last: Roll
Title: Economic inefficiency in a revenue setting: the Norwegian whitefish fishery
Abstract: 
 The main focus in the inefficiency literature is on suboptimal input use and how this causes increased costs, due to technical and allocative inefficiency. Production or cost functions are then typically used to describe the underlying technology of the firm. The possible revenue loss, due to lower than maximum production levels and suboptimal output mix, has received substantially less attention. By using a revenue function to measure inefficiency, the focus, model and estimation technique presented in this article differ from those of previous studies. A shadow revenue model is used to decompose revenue inefficiency into its technical and allocative components, in which the allocative inefficiency is due to a suboptimal output mix. The approach is illustrated using panel data of Norwegian whitefish trawlers. The results reveal large inefficiencies, with respect to output levels as well as output mix, indicating that this can be an important part of the picture when investigating economic inefficiency. To identify the determinants of revenue inefficiency, we conduct a second-step regression, in which technical and allocative inefficiency is regressed upon a set of explanatory variables. The inefficiencies are partly explained by the management system and fleet structure.
Journal: Applied Economics
Pages: 6112-6127
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489502
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489502
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6112-6127




Template-Type: ReDIF-Article 1.0
Author-Name: Myriam Ramzy
Author-X-Name-First: Myriam
Author-X-Name-Last: Ramzy
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: Do environment regulations matter for EU-MENA trade?
Abstract: 
 This study examines the impact of environmental regulations stringency on agricultural trade between European Union (EU) and Middle East and North Africa (MENA countries). Using a gravity model and applying the zero-inflated Poisson (ZIP) model, we estimate the impact of environmental regulations stringency on bilateral agricultural exports between 28 EU and 20 MENA countries during the period 2001–2014. The results have showed that environmental regulations do matter for agricultural trade between both regions because in the presence of excessive zero trade observations, they act as significant fixed export costs that affect the probability of trade. More stringent environmental regulations stimulate innovative efforts in cost-saving green technologies, which increase productivity and positively affect agricultural exports. The results have favoured the revisionist Porter hypothesis (PH), according to which environmental regulations may stimulate innovative efforts, which mitigate the negative effects of higher fixed abatement costs and enhance trade competitiveness.
Journal: Applied Economics
Pages: 4197-4221
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441519
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441519
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4197-4221




Template-Type: ReDIF-Article 1.0
Author-Name: Khandokar Istiak
Author-X-Name-First: Khandokar
Author-X-Name-Last: Istiak
Author-Name: Apostolos Serletis
Author-X-Name-First: Apostolos
Author-X-Name-Last: Serletis
Title: Economic policy uncertainty and real output: evidence from the G7 countries
Abstract: 
 We use economic policy uncertainty index, and impulse response based test to assess the impact of economic policy-related uncertainty on real economic activity. We use monthly data, over the period from 1985:1 to 2015:3, and impulse response functions to investigate how the economies of the G7 countries respond to positive and negative economic policy uncertainty shocks of different magnitudes. We find that economic policy uncertainty is countercyclical, that the effects of uncertainty shocks increase with size and that the responses of real output to positive and negative economic policy uncertainty shocks are country specific. Our research is important for policymaking and in favour of policies that remove economic uncertainty and its negative effects on the economy. We argue that some control over yellow journalism, a transparent tax system and a set of predictable fiscal and monetary policies can minimize the social costs of economic policy uncertainty.
Journal: Applied Economics
Pages: 4222-4233
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441520
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441520
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4222-4233




Template-Type: ReDIF-Article 1.0
Author-Name: Julián Andrada-Félix
Author-X-Name-First: Julián
Author-X-Name-Last: Andrada-Félix
Author-Name: Adrian Fernandez-Perez
Author-X-Name-First: Adrian
Author-X-Name-Last: Fernandez-Perez
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Title: Fear connectedness among asset classes
Abstract: 
 This study investigates the interconnection between five implied volatility indices representative of different financial markets during the period 1 August 2008–29 December 2017. To this end, we first perform a static and dynamic analysis to measure the total volatility connectedness in the entire period (the system-wide approach) using a framework recently proposed by Diebold and Yilmaz. Second, we make use of a dynamic analysis to evaluate both the net directional connectedness for each market and all net pairwise directional connectedness. Our results suggest that a 38.99%, of the total variance of the forecast errors is explained by shocks across markets, indicating that the remainder 61.01% of the variation is due to idiosyncratic shocks. Furthermore, we find that volatility connectedness varies over time, with a surge during periods of increasing economic and financial instability. Finally, we also document frequently switch between a net volatility transmitter and a net volatility receiver role in the five markets under study.
Journal: Applied Economics
Pages: 4234-4249
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441521
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441521
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4234-4249




Template-Type: ReDIF-Article 1.0
Author-Name: Tongzhe Li
Author-X-Name-First: Tongzhe
Author-X-Name-Last: Li
Author-Name: Maik Kecinski
Author-X-Name-First: Maik
Author-X-Name-Last: Kecinski
Author-Name: Kent D. Messer
Author-X-Name-First: Kent D.
Author-X-Name-Last: Messer
Title: Behavioural responses to science-based eco-labelling: gold, silver, or bronze
Abstract: 
 This study uses unique data collected from field experiments to investigate consumer willingness to pay (WTP) for otherwise homogeneous commodities that provide different levels of environmental services. On average, individuals are willing to pay more for products that provide a higher level of ecosystem services. This effect is larger when the label contains symbols that explicitly differentiate the levels. The effect magnitude is further amplified when it contains brief information on the scientific basis for the levels. However, our results also suggest that the WTP premium for the superior product is smaller than the discount in WTP for the inferior product.
Journal: Applied Economics
Pages: 4250-4263
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441522
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441522
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4250-4263




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Mazza
Author-X-Name-First: Paolo
Author-X-Name-Last: Mazza
Author-Name: Mikael Petitjean
Author-X-Name-First: Mikael
Author-X-Name-Last: Petitjean
Title: Implicit transaction cost management using intraday price dynamics
Abstract: 
 Using the Exchange Liquidity Measure, we show that implicit transaction costs exhibit intraday regularities around specific price change signals for a sample of European blue chips publicly quoted on Euronext. Not only transaction costs follow a reverse J-shape throughout the day but they also decrease significantly around specific patterns of price dynamics. By focusing on these signals during the trading day, liquidity traders may detect intraday windows of opportunities during which implicit transaction costs are lower.
Journal: Applied Economics
Pages: 4264-4274
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441523
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441523
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4264-4274




Template-Type: ReDIF-Article 1.0
Author-Name: Veysel Avsar
Author-X-Name-First: Veysel
Author-X-Name-Last: Avsar
Title: R&amp;D intensity, financing cost and antidumping
Abstract: 
 Existing studies have established a stylized fact that worldwide antidumping (AD) activity is concentrated in R&amp;D intensive industries. We build on this issue and analyse the effect of the interaction between financing costs and R&amp;D intensity on AD practices using cross-country cross-industry data. Our findings suggest that R&amp;D intensive industries file disproportionately more AD investigations when financing cost is high.
Journal: Applied Economics
Pages: 4275-4285
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441524
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441524
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4275-4285




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Abdoukarim Idi Cheffou
Author-X-Name-First: Abdoukarim Idi
Author-X-Name-Last: Cheffou
Title: Uncertainty assessment in socially responsible and Islamic stock markets in the short and long terms: an ARDL approach
Abstract: 
 This study measures financial uncertainty for two classes of alternative financial assets (Dow Jones Islamic and Dow Jones Sustainability Indexes) and the conventional US stock market (Dow Jones Industrial Index) for the period of 1999–2017, using an asymmetric exponential GARCH model. Using an ARDL model, we propose an intertemporal dynamic analysis of uncertainty for Islamic and socially responsible stock markets. Our findings show that, first, conventional and ethical investments present high comparable levels of uncertainty for which the dynamics is time-varying. Second, uncertainty in the conventional US stock market has a significant and positive effect on the uncertainty in alternative stock markets. Thus, uncertainty characterizes conventional and ethical stock markets both in the short and long terms. In particular, while the short-term uncertainty of ethical markets might be associated with their characteristics, the long-term aspect of uncertainty for ethical funds is rather associated with the effect of the conventional stock market environment. Although these findings show mean-reversion and uncertainty spillovers from the alternative stock markets to the conventional US one, they suggest lack of safety and certainty for investments in ethic markets, which remain fragile and closely dependent on the conventional market.
Journal: Applied Economics
Pages: 4286-4294
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441525
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441525
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4286-4294




Template-Type: ReDIF-Article 1.0
Author-Name: Michael R. Strain
Author-X-Name-First: Michael R.
Author-X-Name-Last: Strain
Title: Do volatile firms pay volatile earnings? Evidence from linked worker-firm data
Abstract: 
 Despite the importance of earnings instability, little is known about its correlates or causes. This article seeks to better understand earnings instability by studying whether volatile firms pay volatile earnings and is the first to directly test the relationship using US linked employer–employee data. The article finds a positive and statistically significant relationship using within-firm variation. In addition, this article finds that lower earning workers are passed significantly more volatility from their employing firms than are higher earning workers.
Journal: Applied Economics
Pages: 4299-4309
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279273
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279273
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4299-4309




Template-Type: ReDIF-Article 1.0
Author-Name: Satis C. Devkota
Author-X-Name-First: Satis C.
Author-X-Name-Last: Devkota
Author-Name: Bishwa Koirala
Author-X-Name-First: Bishwa
Author-X-Name-Last: Koirala
Author-Name: Kamal P. Upadhyaya
Author-X-Name-First: Kamal P.
Author-X-Name-Last: Upadhyaya
Title: Calculation and decomposition of income inequality in low- and middle-income countries: a survey data analysis
Abstract: 
 This article estimates income inequality in a sample of four low- and middle-income (LMI) countries namely; Albania, Nepal, Tajikistan and Tanzania using the household survey data – Nepal Living Standard Measurement Survey Second. First, we estimate the income generation function for each country and calculate the income inequality using Gini index (GI). Second, we decompose the income Gini into the determinants of income generation functions. Based on the decomposition result, socio-economic factors are the most important determinants of income inequality followed by geographic factors. Demographic factors have the least effect on income inequality in all four countries. Third, we propose a new method to quantify the effect of change in each covariate of income generation function on income Gini. That allows us to quantify the effects of change in specific policy such as increase in investment in schooling or public health to specific group of the population in society on income inequality. A carefully chosen, integrated policy can significantly reduce inequality in all four countries under study.
Journal: Applied Economics
Pages: 4310-4320
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282141
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282141
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4310-4320




Template-Type: ReDIF-Article 1.0
Author-Name: Nawel Ayadi
Author-X-Name-First: Nawel
Author-X-Name-Last: Ayadi
Author-Name: Corina Paraschiv
Author-X-Name-First: Corina
Author-X-Name-Last: Paraschiv
Author-Name: Eric Vernette
Author-X-Name-First: Eric
Author-X-Name-Last: Vernette
Title: Increasing consumer well-being: risk as potential driver of happiness
Abstract: 
 This article investigates the relation between risk and individual well-being. We propose a theoretical model of happiness that makes a distinction between ex ante evaluations of happiness and ex post assessments. The main assumptions of the model are tested through three studies based on anchoring vignettes. We show that, even if, ex ante, consumers fear high risk and do not associate it to a high level of happiness, their ex post evaluation of well-being is generally higher when identical consequences result from a high-risk situation than from a low-risk situation. Control over risk-taking reinforces the gap between ex ante and ex post measures of happiness. Thus, our article provides empirical evidence about a positive relation between risk and individual well-being, suggesting that risky experiences have the potential to increase consumer well-being.
Journal: Applied Economics
Pages: 4321-4335
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282142
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282142
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4321-4335




Template-Type: ReDIF-Article 1.0
Author-Name: Lakshman Alles
Author-X-Name-First: Lakshman
Author-X-Name-Last: Alles
Author-Name: Louis Murray
Author-X-Name-First: Louis
Author-X-Name-Last: Murray
Title: Asset pricing and downside risk in the Australian share market
Abstract: 
 As downside risk has been identified as a separate risk exposure to investors, we investigate whether downside beta and co-skewness exposure impact on the return to investors in Australian equities. Although considered as a developed market, the Australian Securities Exchange merits separate investigation, as it is small and concentrated on some sectors, when compared with the major developed markets. As realized returns are a proxy for expected returns, we separately examine conditional returns in upturn and downturn periods. We find that both downside risks are separately priced by investors, and that our results are unaffected by the inclusion of a range of company characteristics. We subsequently confirm that returns to each downside risk are not related. In robustness tests, we conclude that the return to downside risk cannot be explained by a size, a value, or a momentum premium. Although it also has explanatory power, the inclusion of a leverage factor also does not reduce the explanatory power of downside risk.
Journal: Applied Economics
Pages: 4336-4350
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282143
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282143
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4336-4350




Template-Type: ReDIF-Article 1.0
Author-Name: Vo Phuong Mai Le
Author-X-Name-First: Vo Phuong Mai
Author-X-Name-Last: Le
Author-Name: David Meenagh
Author-X-Name-First: David
Author-X-Name-Last: Meenagh
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Title: Tracing the causes of the banking crisis
Abstract: 
 We add the Bernanke–Gertler–Gilchrist model to a modified version of the Smets–Wouters model of the U.S. in order to explore the causes of the banking crisis. The innovation of this article is estimating the model using unfiltered data allowing for non-stationary shocks in order to replicate how the model predicts the crisis. We find that ‘traditional shocks’ account for most of the fluctuations in macroeconomic variables; the non-stationarity of the productivity shock plays a key role. Crises occur when there is a ‘run’ of bad shocks; based on this sample they occur on average once every 64 years and when they occur around 10% are accompanied by financial crisis. Financial shocks on their own, even when extreme, do not cause crises – provided the government acts swiftly to counteract such a shock as happened in this sample.
Journal: Applied Economics
Pages: 4351-4362
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282145
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282145
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4351-4362




Template-Type: ReDIF-Article 1.0
Author-Name: Liqiu Zhao
Author-X-Name-First: Liqiu
Author-X-Name-Last: Zhao
Author-Name: Xianguo Yao
Author-X-Name-First: Xianguo
Author-X-Name-Last: Yao
Title: Does local social capital deter labour migration? Evidence from rural China
Abstract: 
 This article empirically investigates the effect of local social capital on job-related migration in rural China. A household’s social ties in the region of origin, which we refer to as local social capital, may deter migration, because local social capital is location specific and an individual cannot benefit from it if s/he migrates. In view of Chinese gift-giving culture, we use household expenses on wedding gifts for family members outside household, relatives and friends as a proxy for local social networks. Based on the data from the China Health and Nutrition Survey, we find that in rural China local social networks have a significantly negative effect on migration. The IV results suggest that a 10% increase in wedding gifts expenses results in roughly a 1.1 percentage points decrease in migration probability.
Journal: Applied Economics
Pages: 4363-4377
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282146
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282146
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4363-4377




Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Peruzzi
Author-X-Name-First: Valentina
Author-X-Name-Last: Peruzzi
Title: Does family ownership structure affect investment-cash flow sensitivity? Evidence from Italian SMEs
Abstract: 
 The aim of this article is to investigate whether family control, family management and family ownership concentration affect the investment-cash flow sensitivity of small- and medium-sized enterprises (SMEs). By analysing a sample of Italian SMEs for the period 2004–2013, I find that family-owned businesses are significantly associated with higher investment-cash flow dependence. This relation, however, is found to be driven by two distinct factors: (i) the presence of a highly concentrated family ownership (ownership concentration channel) and (ii) the active involvement of the family in the business (family management channel).
Journal: Applied Economics
Pages: 4378-4393
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282147
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282147
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4378-4393




Template-Type: ReDIF-Article 1.0
Author-Name: Florian Fizaine
Author-X-Name-First: Florian
Author-X-Name-Last: Fizaine
Author-Name: Sondès Kahouli
Author-X-Name-First: Sondès
Author-X-Name-Last: Kahouli
Title: On the power of indicators: how the choice of fuel poverty indicator affects the identification of the target population
Abstract: 
 In light of the creation of the EU Energy Poverty Observatory (EPOV) in January 2018 and the increase in debates on how fuel poverty is measured, we propose a critical analysis of fuel poverty indicators and demonstrate that choosing a given indicator is central to the identification of the fuel-poorpopulation.First, we conducted an inter-indicator analysis to show how profiles of fuel-poor households vary depending on the indicator selected. We designed a multidimensional approach based on a multiple correspondence analysis and a hierarchical and partitioning clustering analysis to study characteristics of fuel-poor households. We highlight the difficulty of identifying a fuel-poor ‘typical profile’ and show that the composition of the population depends on the choice of the indicator.Second, we applied an intra-indicator analysis using two objective expenditure-based indicators with thresholds. In particular, we conducted a sensitivity analysis based on a logit model including variables describing household and dwelling characteristics. We show that the profiles of fuel-poor households as well as the drivers of fuel poverty vary considerably with the chosen threshold level.Given these findings, we stress the need to review how we currently rely on conventional fuel poverty indicators to identify target groups and give some recommendations.
Journal: Applied Economics
Pages: 1081-1110
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524975
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524975
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1081-1110




Template-Type: ReDIF-Article 1.0
Author-Name: Pascal L. Ghazalian
Author-X-Name-First: Pascal L.
Author-X-Name-Last: Ghazalian
Author-Name: Frederick Amponsem
Author-X-Name-First: Frederick
Author-X-Name-Last: Amponsem
Title: The effects of economic freedom on FDI inflows: an empirical analysis
Abstract: 
 There is a regular emphasis on the significant role of inward Foreign Direct Investment (FDI) in promoting economic growth. This favourable relationship has induced many governments to adopt policies intended to increase FDI inflows and, thereby, to create conducive business and economic conditions for Multinational Enterprises (MNEs). This paper examines the effects of Economic Freedom (EF) and its sub-components reflecting the Quality of Institutions (QIs) on FDI inflows, using indices derived from the Fraser Institute and from the Heritage Foundation. The empirical analysis is carried out for a panel dataset using different econometric methodologies and empirical specifications. The results underline positive effects of EF on FDI inflows. They reveal that EF sub-components have varying impacts on FDI inflows, where rule of law, market openness, and less-restrictive regulatory environment stand out as the major FDI-promoting institutional factors. Also, there is an empirical evidence that the effects of EF sub-components on FDI inflows exhibit variations through the economic characteristics of the host countries and across geo-economic regions. The results suggest that governments should pursue EF-improving policies, which should be tailored according to the economic and geo-economic characteristics of the host countries, to increase FDI inflows.
Journal: Applied Economics
Pages: 1111-1132
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524979
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524979
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1111-1132




Template-Type: ReDIF-Article 1.0
Author-Name: Jingze Jiang
Author-X-Name-First: Jingze
Author-X-Name-Last: Jiang
Author-Name: T. Randall Fortenbery
Author-X-Name-First: T. Randall
Author-X-Name-Last: Fortenbery
Title: El Niño and La Niña induced volatility spillover effects in the U.S. soybean and water equity markets
Abstract: 
 This paper examined links between U.S. soybean prices and the Dow Jones U.S. Water Index (DJUSWU). We particularly studied the impact of El Niño and La Niña events on price risk spillovers. Results showed that La Niña significantly increases the linkages between soybean and water equity markets. Based on this, we identified a new soybean hedge strategy that would be possible if a futures contract for the DJUSWU existed. This new strategy improves on the effectiveness of both a conventional naïve soybean market hedge, and a traditional time-varying hedge. The findings can be used to assist soybean agents in managing increased market risks associated with extreme weather events.
Journal: Applied Economics
Pages: 1133-1150
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524980
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524980
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1133-1150




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Poirine
Author-X-Name-First: Bernard
Author-X-Name-Last: Poirine
Author-Name: Vincent Dropsy
Author-X-Name-First: Vincent
Author-X-Name-Last: Dropsy
Title: Diaspora growth and aggregate remittances: an inverted-U relationship?
Abstract: 
 This paper presents a model in which remittances stem from a decision made jointly by a family coalition of multiple migrants and non-migrants, allowing two alternative interpretations: migrants’ altruism or bargaining power. The model predicts that aggregate remittances first increase, reach a maximum, and then decrease as the emigration ratio (migrants/non-migrants) increases. An alternative model of loan repayment arrangement between each migrant and her parents, predicts that aggregate remittances grow monotonously with the emigration ratio. Testing both predictions on a macroeconomic bilateral dataset we find evidence in favour of the first model and an inverted-U relationship between aggregate remittances and the emigration ratio, with a maximum reached at a value of 0.5. Since many small ‘MIRAB’ island nations are close to or even above this threshold value, this finding is highly relevant for them since they may experience declining aggregate remittances as the diaspora grows further.
Journal: Applied Economics
Pages: 1151-1165
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524981
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524981
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1151-1165




Template-Type: ReDIF-Article 1.0
Author-Name: K. Hervé Dakpo
Author-X-Name-First: K. Hervé
Author-X-Name-Last: Dakpo
Author-Name: Yann Desjeux
Author-X-Name-First: Yann
Author-X-Name-Last: Desjeux
Author-Name: Philippe Jeanneaux
Author-X-Name-First: Philippe
Author-X-Name-Last: Jeanneaux
Author-Name: Laure Latruffe
Author-X-Name-First: Laure
Author-X-Name-Last: Latruffe
Title: Productivity, technical efficiency and technological change in French agriculture during 2002-2015: a Färe-Primont index decomposition using group frontiers and meta-frontier
Abstract: 
 The objective of the article is to assess productivity change in French agriculture during 2002–2015; namely, total factor productivity (TFP) change and its components – technological change and efficiency change. For this, we use the Färe-Primont index which verifies the multiplicatively completeness property and is also transitive, allowing for multi-temporal and -lateral comparisons. We investigate the extent of heterogeneity within each type of farming sub-sample in terms of TFP change, with the help of the Herfindahl-Hirschman index (HHI). In addition, to compare the technologies among the five types of farming considered, we extend our analysis to the meta-frontier framework. Results indicate that during 2002–2015, all farms experienced TFP progress. The smallest average increase was experienced by the dairy farms and the largest by the field crop farms and the beef farms. The latter had the strongest technological progress but a deterioration in efficiency, while the opposite was found for field crop farms. The analysis of HHI reveals that sheep or goat farms are the most homogenous in terms of the direction of TFP change experienced over the period 2002–2015. The meta-frontier analysis shows that field crop farms’ technology is the most productive of all the types of farming.
Journal: Applied Economics
Pages: 1166-1182
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524982
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524982
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1166-1182




Template-Type: ReDIF-Article 1.0
Author-Name: Eva Barteková
Author-X-Name-First: Eva
Author-X-Name-Last: Barteková
Author-Name: Thomas H. W Ziesemer
Author-X-Name-First: Thomas H. W
Author-X-Name-Last: Ziesemer
Title: The impact of electricity prices on foreign direct investment: evidence from the European Union
Abstract: 
 We examine the impact of electricity price variation on net FDI (%GDP) inflows in countries of the European Union. We use panel data of 27 EU countries for a period of 2003 – 2013. We show that electricity prices of south-western and north-eastern EU countries did not converge to one price until now. Dynamic panel data analysis using system GMM shows that besides unit labour costs, tax rates and competitive disadvantage in secondary education, also higher electricity prices reduce countries’ ability to attract FDI. The immediate effects are statistically significant across both sub-regions analysed: in the short run, a 10% increase in electricity prices leads to a decrease in net FDI inflows as a share of GDP by 0.4 percentage points for the south-western and 0.33 for the north-eastern region. In the long run, the response is 0.60 percentage points for south-western and 0.48 for north-eastern regions. Policies should aim at reducing electricity market price differences on the European level through investment in transborder transmission capacity; reductions in FDI, when environmental policy increases after-tax electricity prices, should be countered by other tax reductions as well as harmonization of property rights, absence of corruption and labour market regulations at best-practice level.
Journal: Applied Economics
Pages: 1183-1198
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524983
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524983
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1183-1198




Template-Type: ReDIF-Article 1.0
Author-Name: Joyce Hsieh
Author-X-Name-First: Joyce
Author-X-Name-Last: Hsieh
Author-Name: Ting-Cih Chen
Author-X-Name-First: Ting-Cih
Author-X-Name-Last: Chen
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Title: Credit constraints and growth gains from governance
Abstract: 
 This paper contributes to the governance literature by analyzing the specific mechanisms through which governance affects economic growth: The credit channel. Specifically, it investigates the growth impact of governance on industries with different levels of dependence on external finance. Better governance mitigates credit market imperfections by increasing transparency and accountability and reducing government-policy distortions, promoting productive investment and entrepreneurship development, with a disproportionate impact on sectors that depend on external finance. This paper indeed finds that countries with well-functioning governments are better at providing growth and investment environments for the expansion of industries that rely heavily on external finance and the formation of new establishments in these industries, when controlling for financial development. These results are robust to possible reverse causality, different specifications, subsamples and outliers.
Journal: Applied Economics
Pages: 1199-1211
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527009
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527009
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1199-1211




Template-Type: ReDIF-Article 1.0
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Author-Name: Mark J. Holmes
Author-X-Name-First: Mark J.
Author-X-Name-Last: Holmes
Author-Name: Bong Soo Lee
Author-X-Name-First: Bong Soo
Author-X-Name-Last: Lee
Title: The asymmetric relationship between executive earnings management and compensation: a panel threshold regression approach
Abstract: 
 Prior research shows that chief executive officers (CEOs) are rewarded for their earnings management. We re-examine this issue using a panel threshold regression approach, which allows the effect of earnings management on the CEO compensation to change across the level of earnings management and CEO compensation. Our results show that the effect of CEOs’ discretionary accounting choices on their compensation is not homogeneous across various degrees of earnings management and compensation. In particular, for firms with moderate (inordinate) levels of earnings management and CEO compensation, earnings management is rewarded (penalized).
Journal: Applied Economics
Pages: 5525-5545
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181707
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181707
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5525-5545




Template-Type: ReDIF-Article 1.0
Author-Name: Sandra Hanslin Grossmann
Author-X-Name-First: Sandra
Author-X-Name-Last: Hanslin Grossmann
Author-Name: Sarah M. Lein
Author-X-Name-First: Sarah M.
Author-X-Name-Last: Lein
Author-Name: Caroline Schmidt
Author-X-Name-First: Caroline
Author-X-Name-Last: Schmidt
Title: Exchange rate and foreign GDP elasticities of Swiss exports across sectors and destination countries
Abstract: 
 This article uses a detailed breakdown of Swiss trade flows to identify how the impact of the two main determinants of Switzerland’s exports – foreign demand and the real exchange rate – varies across sectors and export destinations. Our main findings are that (i) both foreign demand and exchange rate elasticities vary substantially across both export sectors and export destinations. (ii) Foreign demand trends are more important for structural considerations than the exchange rate. This is due to the fact that exports of the two largest export sectors are relatively sensitive to long-run foreign demand developments while they are relatively insensitive to changes in the exchange rate. (iii) The sectoral structure of Switzerland’s exports has shifted towards goods that have a lower short-run demand elasticity and a higher long-run demand elasticity. Goods exports are thus less influenced by business cycle fluctuations while they benefit more from long-term growth trends. (iv) The export share of sectors with a relatively low exchange rate elasticity has increased. However, this result is mainly driven by the strong rise in exports of chemicals and pharmaceuticals as well as precision instruments and watches, which are also the two important sectors responsible for the Swiss trade surplus.
Journal: Applied Economics
Pages: 5546-5562
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181828
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181828
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5546-5562




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Bonnet
Author-X-Name-First: Jean
Author-X-Name-Last: Bonnet
Author-Name: Sylvie Cieply
Author-X-Name-First: Sylvie
Author-X-Name-Last: Cieply
Author-Name: Marcus Dejardin
Author-X-Name-First: Marcus
Author-X-Name-Last: Dejardin
Title: Credit rationing or overlending? An exploration into financing imperfection
Abstract: 
 Small and new firms are deemed to be unable to obtain sufficient bank loans. This idea finds a strong theoretical support in credit rationing theory. However, this is vigorously challenged by De Meza and Webb (1987, 2000) suggesting that firms can benefit from an excess of credit, i.e. overlending. Credit rationing or overlending? The contribution of this empirical article is twofold: to our knowledge, it is the first to make an attempt in measuring the relative importance of these two types of financing imperfection and to explore factors leading to one or the other. We exploit a rich panel data set on the access to bank credit for new French businesses during the mid-1990s. Our results show that credit rationing was not highly spread among French new firms. The story told by De Meza and Webb (1987) appears to be a much more realistic model. In addition, we identify factors, linked to the starter, the project or the industry, that are closely associated with credit rationing and/or overlending. Most factors enter into a consistent relation: when they are positively (negatively) associated with credit rationing, they are negatively (positively) associated with overlending.
Journal: Applied Economics
Pages: 5563-5580
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181829
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181829
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5563-5580




Template-Type: ReDIF-Article 1.0
Author-Name: H. Lasram
Author-X-Name-First: H.
Author-X-Name-Last: Lasram
Author-Name: Didier G. Laussel
Author-X-Name-First: Didier G.
Author-X-Name-Last: Laussel
Title: Is firm-sponsored training a palliative? A common agency approach
Abstract: 
 We analyse the issue of firm-sponsored training under product market imperfections. In this setting, qualification becomes a public good for firms when their profits are increasing in the stock of skilled workers but remains a private good to students/workers. Students have to pay a tuition fee but at the same time firms sponsor education: universities sell training to both. We prove that the proportion of skilled workers is larger in more competitive economies/industries while the share of firms in the financing of training is a monotonically decreasing function of the degree of competition. An increase of the latter indeed increases the equilibrium skilled wage while reducing its sensitivity to an increase of the supply of skilled workers. The firms’ aggregate expenditures on training per worker are nevertheless a nonmonotonic function of the competitiveness of the economy.
Journal: Applied Economics
Pages: 5581-5592
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181830
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181830
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5581-5592




Template-Type: ReDIF-Article 1.0
Author-Name: Shahnaz Abdullah
Author-X-Name-First: Shahnaz
Author-X-Name-Last: Abdullah
Author-Name: Shakil Quayes
Author-X-Name-First: Shakil
Author-X-Name-Last: Quayes
Title: Do women borrowers augment financial performance of MFIs?
Abstract: 
 There is some consensus that depth of outreach and financial performance of Microfinance Institutions (MFI) are positively correlated. A majority of microcredit borrowers are women and since the prevalence of female borrowers is even greater among the very poor, there should be a positive correlation between female borrowers and financial performance. Most of the MFIs target women as preferred borrowers. However, no study to date has investigated the relationship between targeting women and MFI’s sustainability with respect to profitability and yield. Utilizing a panel of 892 MFIs over a period of 10 years, this study shows that increased proportion of women borrowers has a statistically significant positive impact on yield and financial performance of MFIs. Consequently, this article also analyses the implication as to whether female borrowers have better repayment rate than male borrowers.
Journal: Applied Economics
Pages: 5593-5604
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181831
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181831
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5593-5604




Template-Type: ReDIF-Article 1.0
Author-Name: Akihiro Omura
Author-X-Name-First: Akihiro
Author-X-Name-Last: Omura
Author-Name: Richard Chung
Author-X-Name-First: Richard
Author-X-Name-Last: Chung
Author-Name: Neda Todorova
Author-X-Name-First: Neda
Author-X-Name-Last: Todorova
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: Relative scarcity and convenience yield: evidence from non-ferrous metals
Abstract: 
 We study the relationship between convenience yield and relative scarcity in the non-ferrous metal market for the period January 2000–March 2015. We identify various sets of economic relationships for six major base metals, namely, aluminium, copper, lead, nickel, tin and zinc. Our bivariate and multivariate VARs and associated Granger-causality test results generally support the existence of a positive relationship between convenience yields of base metals and our relative scarcity measure. Furthermore, the time-varying characteristics observed in the results, especially during contango and backwardation periods, provide useful information to market players in developing inventory strategies.
Journal: Applied Economics
Pages: 5605-5624
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181832
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181832
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5605-5624




Template-Type: ReDIF-Article 1.0
Author-Name: Roman Horvath
Author-X-Name-First: Roman
Author-X-Name-Last: Horvath
Author-Name: Dominika Katuscakova
Author-X-Name-First: Dominika
Author-X-Name-Last: Katuscakova
Title: Transparency and trust: the case of the European Central Bank
Abstract: 
 We examine how the transparency of the European Central Bank’s monetary policy affects the amount of trust that the citizens of the European Union have in this institution. We use nearly half a million individual responses from the European Commission’s Eurobarometer survey from 2000 to 2011 and estimate probit regressions with sample selection. We find that transparency exerts a non-linear effect on trust. Transparency increases trust, but only up to a certain point; too much transparency harms trust. This result is robust to controlling for a number of macroeconomic conditions, financial stability transparency measures, and economic and socio-demographic characteristics of respondents, including examining respondents in European Union countries that do not use the euro and addressing clustering issues.
Journal: Applied Economics
Pages: 5625-5638
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181833
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181833
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5625-5638




Template-Type: ReDIF-Article 1.0
Author-Name: Sandrine Kablan
Author-X-Name-First: Sandrine
Author-X-Name-Last: Kablan
Author-Name: Olfa Kaabia
Author-X-Name-First: Olfa
Author-X-Name-Last: Kaabia
Title: Transmission channels of international financial crises to African stock markets: the case of the euro sovereign debt crisis
Abstract: 
 This article investigates the effects of the European sovereign debt crisis on African stock markets within a Bayesian shrinkage VAR framework. This method allows us to consider both North African and Sub-Saharan African stock markets, and provides a flexible parsimonious specification. The results reveal varying reactions of the impulse response functions. The most exposed African stock markets are those of Egypt, South Africa and Mauritius, while the least affected stock market is, surprisingly, that of Ivory Coast. Our analysis shows that, in addition to direct transmission, several macroeconomic and market channels, such as commodities, exports, and exchange rates, are relevant. Specifically, countries with strong commercial links to European countries will be most impacted by the crisis. The severity of transmission also depends on the country’s dependence on commodities.
Journal: Applied Economics
Pages: 1992-2011
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1383597
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1383597
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:1992-2011




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Fayyaz Sheikh
Author-X-Name-First: Muhammad Fayyaz
Author-X-Name-Last: Sheikh
Author-Name: Syed Zulfiqar Ali Shah
Author-X-Name-First: Syed Zulfiqar Ali
Author-X-Name-Last: Shah
Author-Name: Saeed Akbar
Author-X-Name-First: Saeed
Author-X-Name-Last: Akbar
Title: Firm performance, corporate governance and executive compensation in Pakistan
Abstract: 
 This study examines the effects of firm performance and corporate governance on chief executive officer (CEO) compensation in an emerging market, Pakistan. Using a more robust Generalized Method of Moments (GMM) estimation approach for a sample of non-financial firms listed at Karachi Stock Exchange over the period 2005–2012, we find that both current- and previous-year accounting performances has positive influence on CEO compensation. However, stock market performance does not appear to have a positive impact on executive compensation. We further find that ownership concentration is positively related with CEO compensation, indicating some kind of collusion between management and largest shareholder to get personal benefits. Inconsistent with agency theory, CEO duality appears to have a negative influence, while board size and board independence have no convincing relationship with CEO compensation, indicating board ineffectiveness in reducing CEO entrenchment. The results of dynamic GMM model suggest that CEO pay is highly persistent and takes time to adjust to long-run equilibrium.
Journal: Applied Economics
Pages: 2012-2027
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1386277
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1386277
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2012-2027




Template-Type: ReDIF-Article 1.0
Author-Name: Bradley J. Rickard
Author-X-Name-First: Bradley J.
Author-X-Name-Last: Rickard
Author-Name: Olivier Gergaud
Author-X-Name-First: Olivier
Author-X-Name-Last: Gergaud
Author-Name: Shuay-Tsyr Ho
Author-X-Name-First: Shuay-Tsyr
Author-X-Name-Last: Ho
Author-Name: Florine Livat
Author-X-Name-First: Florine
Author-X-Name-Last: Livat
Title: Trade liberalization in the presence of domestic regulations: public policies applied to EU and U.S. wine markets
Abstract: 
 Wine is the highest valued product in the agricultural, food, and beverage sector traded between the United States and the European Union (EU) and wine faces a range of tariffs that are differentiated by country and product category. In addition, the production of wine grapes is heavily regulated within the EU and there are complicated state-level policies in the United States designed to limit the retail availability of wine. There continues to be economic and political pressure for reform to the tariffs between the United States and the EU, and to the domestic regulations in each region. We carefully develop parameters to characterize the effects of tariffs and domestic regulations that affect production and consumption of wine in the two regions. Simulation results show that reductions in tariffs would have relatively small effects in EU and U.S. wine markets, whereas reductions in EU domestic policies that affect wine grape production would have much larger trade and welfare implications.
Journal: Applied Economics
Pages: 2028-2047
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1386278
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1386278
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2028-2047




Template-Type: ReDIF-Article 1.0
Author-Name: John Considine
Author-X-Name-First: John
Author-X-Name-Last: Considine
Author-Name: Liam Gallagher
Author-X-Name-First: Liam
Author-X-Name-Last: Gallagher
Title: Competitive balance in a quasi-double knockout tournament
Abstract: 
 In 2001, the All-Ireland Gaelic Football competition changed from being a singleknockout tournament to a quasi-double knockout competition. Similar natural experiments in economics and operational research theory suggest such a change should reduce the competitive balance in the competition. Using a Hirschmann–Herfindahl Index measure of concentration and a bootstrapping approach, we confirm that the new structure leads to a less competitive outcome and, importantly, this outcome is less uncertain. Our bootstrapped results show that in the long run, with larger samples, there is less competitive balance in the new competition structure than in the older structure competition structure. Finally, we also consider a stochastic dominance approach to evaluating the change in tournament structure, but the low power due to the presence of ties in our small sample leads to an inconclusive outcome.
Journal: Applied Economics
Pages: 2048-2055
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1386279
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1386279
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2048-2055




Template-Type: ReDIF-Article 1.0
Author-Name: J. Carles Maixé-Altés
Author-X-Name-First: J. Carles
Author-X-Name-Last: Maixé-Altés
Author-Name: Emma M. Iglesias
Author-X-Name-First: Emma M.
Author-X-Name-Last: Iglesias
Title: Banking, currency, stock market and debt crises in Spain, 1850–1995
Abstract: 
 What type of crisis is generated when debt increases? We extend the literature by framework by introducing currency and stock market crises in the analysis. We apply our proposal to the case of Spain, since this is a country that has experienced a very important amount of financial crises from the nineteenth century onwards. We find the same results as the previous literature for the determinants of banking and debt crises but substituting external and public debt with perpetual debt and where perpetual debt has a less important role than crises in the private sector. Moreover, we find evidence in favour of the hypothesis that currency crises depend strongly and positively on financial centre crises and negatively and mildly on perpetual debt. We justify the negative relalionship due to an inflation tax. We also find evidence in favour of the hypothesis that stock market crises depend only positively and strongly on financial centre crises.
Journal: Applied Economics
Pages: 2056-2069
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1386280
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1386280
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2056-2069




Template-Type: ReDIF-Article 1.0
Author-Name: Gulcan Onel
Author-X-Name-First: Gulcan
Author-X-Name-Last: Onel
Title: Adjustment costs and threshold effects in factor demand relationships
Abstract: 
 It has been recently argued that producers may not respond to every input price change in the way that a linear factor demand model would predict. This lumpy response is due to adjustment costs that are inherent in the act of adjusting the mix of inputs applied in the underlying production technologies. This study aims to provide a solid conceptual framework for these nonlinearities in factor demand relationships. Industry-specific implications of convex and non-convex adjustment costs for the linearity of the factor demand relationships as well as price and substitution elasticities are explored. A two-regime threshold system of factor demand equations is estimated for several manufacturing industries in the United States. Empirical results suggest significant threshold effects in the factor demand relationships in most nondurable goods sectors. The size and the nature of thresholds depend upon industry characteristics, including input composition and (non)convexity of underlying adjustment costs. Complete matrices of price and substitution elasticities for each industry are derived using estimates of threshold factor demand systems. Discussion of two contrasting cases in greater detail sheds light on how the effect of price shocks on factor demand relationships varies across industries with different adjustment cost structures.
Journal: Applied Economics
Pages: 2070-2086
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1388908
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1388908
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2070-2086




Template-Type: ReDIF-Article 1.0
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: M. I. M. Wahab
Author-X-Name-First: M. I. M.
Author-X-Name-Last: Wahab
Author-Name: Jing Liu
Author-X-Name-First: Jing
Author-X-Name-Last: Liu
Author-Name: Li Liu
Author-X-Name-First: Li
Author-X-Name-Last: Liu
Title: Is economic policy uncertainty important to forecast the realized volatility of crude oil futures?
Abstract: 
 In this research, we first investigate whether economic policy uncertainty (EPU) index can increase the HAR-RV-type models’ forecast accuracy. In addition, we explore how EPU index can be effectively used to gain larger economic values in the oil futures market. To this end, this research provides a new perspective on setting thresholds for EPU and examines whether these thresholds can help improve both the forecast accuracy and economic values. Empirical results suggest that the HAR-RV-type models including EPU can generate more accurate forecasts and economic values. The HAR-RV-type models including above-threshold EPU can further improve the forecast accuracy and yield higher economic values by setting specific thresholds for a range of horizons. The findings highlight the importance of EPU and effective way of using EPU in risk management and portfolio strategies that is crucial for investors and policymakers.
Journal: Applied Economics
Pages: 2087-2101
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1388909
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1388909
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2087-2101




Template-Type: ReDIF-Article 1.0
Author-Name: Paul André
Author-X-Name-First: Paul
Author-X-Name-Last: André
Author-Name: Dionysia Dionysiou
Author-X-Name-First: Dionysia
Author-X-Name-Last: Dionysiou
Author-Name: Ioannis Tsalavoutas
Author-X-Name-First: Ioannis
Author-X-Name-Last: Tsalavoutas
Title: Mandated disclosures under IAS 36 Impairment of Assets and IAS 38 Intangible Assets: value relevance and impact on analysts’ forecasts
Abstract: 
 Drawing on a large sample of European firms, we examine whether variant compliance levels with mandated disclosures under IAS 36 Impairment of Assets and IAS 38 Intangible Assets are value relevant and affect analysts’ forecasts. Our results indicate a mean (median) compliance level of about 84% (86%) but high variation among firms and disclosure levels regarding IAS 36 being much lower than those regarding IAS 38. In depth, analysis reveals that non-compliance relates mostly to proprietary information and information that reveals managers’ judgment and expectations. Furthermore, we find a positive (negative) relationship between average disclosure levels and market values (analysts’ forecast dispersion). Results, however, hold more specifically for disclosures related to IAS 36, and these also improve analysts’ forecast accuracy. Our findings add knowledge regarding the economic consequences of mandatory disclosures, have an appeal to regulators and financial statement preparers and reflect on the IASB’s concerns to increase the guidance and principles on presentation and disclosure.
Journal: Applied Economics
Pages: 707-725
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340570
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340570
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:707-725




Template-Type: ReDIF-Article 1.0
Author-Name: Yolanda Ubago Martínez
Author-X-Name-First: Yolanda
Author-X-Name-Last: Ubago Martínez
Author-Name: Pedro Pascual Arzoz
Author-X-Name-First: Pedro Pascual
Author-X-Name-Last: Arzoz
Author-Name: Belén Iráizoz Apezteguía
Author-X-Name-First: Belén Iráizoz
Author-X-Name-Last: Apezteguía
Title: Does decentralization contribute to efficiency? Evidence from OECD countries
Abstract: 
 This article provides evidence on the relationship between fiscal decentralization and technical efficiency. We begin the first stage of this study with a data envelopment analysis to obtain technical efficiency estimates for a sample of 23 OECD countries over the period 1992–2009. In a second stage, we explore the effects of fiscal decentralization and other control variables on technical efficiency. The results including all the control variables reveal a statistically significant negative relationship between fiscal decentralization of public expenditure and technical efficiency.
Journal: Applied Economics
Pages: 726-742
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340572
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340572
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:726-742




Template-Type: ReDIF-Article 1.0
Author-Name: Evangelia Kasimati
Author-X-Name-First: Evangelia
Author-X-Name-Last: Kasimati
Author-Name: Nikolaos Veraros
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Veraros
Title: Accuracy of forward freight agreements in forecasting future freight rates
Abstract: 
 Participants in the maritime industry place much interest in the Forward Freight Agreements (FFA/FFAs), being an indispensable tool for hedging shipping freight risk. Our article innovates by directly comparing the FFA predictions with their actual future settlement prices as well as by examining contracts going forward as far as next calendar year. We combine straightforward comparison measurements with cointegration analysis to test for the accuracy and efficiency of the FFA projections. We find that FFAs display limited usefulness in predicting future freights, only slightly superior than simple naïve models. The shorter the contract period and the smaller the vessel the better the forecast. We also find FFAs being relatively good predictors of future market direction but missing the turning points of the market cycles.
Journal: Applied Economics
Pages: 743-756
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340573
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340573
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:743-756




Template-Type: ReDIF-Article 1.0
Author-Name: Eunsun Yang
Author-X-Name-First: Eunsun
Author-X-Name-Last: Yang
Author-Name: Sunghyun Henry Kim
Author-X-Name-First: Sunghyun Henry
Author-X-Name-Last: Kim
Author-Name: Maria H Kim
Author-X-Name-First: Maria H
Author-X-Name-Last: Kim
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: Macroeconomic shocks and stock market returns: the case of Korea
Abstract: 
 This study examines the effects of macroeconomic shocks on key macro variables, including stock market returns in Korea, using the structural vector autoregression (SVAR) model. We suggest a three-variable SVAR model incorporating inflation, output growth and stock returns. We adopt a nonzero z-ratio restriction for the long-run identifying assumption to allow for economically meaningful relationships among variables. While our results support the negative (positive) relation of demand (supply) shocks to stock returns, we also find that demand shocks influence stock market variance more significantly than supply shocks do. The sub-period analysis finds that global market fluctuations during the global financial crisis have relatively little effect on Korean stock market performance. We also examine a generalized five-variable model that includes the foreign exchange rate and interest rate, confirming the results from the three-variable case.
Journal: Applied Economics
Pages: 757-773
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340574
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340574
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:757-773




Template-Type: ReDIF-Article 1.0
Author-Name: Yan-leung Cheung
Author-X-Name-First: Yan-leung
Author-X-Name-Last: Cheung
Author-Name: Yunhao Dai
Author-X-Name-First: Yunhao
Author-X-Name-Last: Dai
Author-Name: Zhiwei Ouyang
Author-X-Name-First: Zhiwei
Author-X-Name-Last: Ouyang
Author-Name: Weiqiang Tan
Author-X-Name-First: Weiqiang
Author-X-Name-Last: Tan
Title: Who leaves money on the table? The role of founder identity in Hong Kong
Abstract: 
 This study investigates the effect of corporate governance factors on the underpricing of initial public offerings (IPOs) in Hong Kong, and the results show that this effect is significant. IPOs are categorized into four subgroups based on the role of the founder: (1) no-founder firms (companies with no specific founder), (2) pure-founder firms (companies whose founder is neither the company’s chairman of the board nor its CEO), (3) founder-chairman/CEO firms (companies whose founder is either the company’s chairman of the board or its CEO) and (4) founder-chairman-CEO firms (companies whose founder is the chairman and CEO). The results demonstrate a significant descending pattern for the underpricing level of the four subgroups, which can be explained by the varying incentive and behaviour mechanisms that result from the various founder identities.
Journal: Applied Economics
Pages: 774-788
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340577
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340577
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:774-788




Template-Type: ReDIF-Article 1.0
Author-Name: Liang Ding
Author-X-Name-First: Liang
Author-X-Name-Last: Ding
Author-Name: Qianyi Yang
Author-X-Name-First: Qianyi
Author-X-Name-Last: Yang
Title: Asymmetric impact of monetary surprises on exchange rate
Abstract: 
 This paper examines the asymmetric response of exchange rate to monetary surprises. After controlling the type, direction and origin of the news as well as business cycle phase, a new asymmetry is found in the response of the exchange rate to news surprises. In specific, the US Dollar depreciates against major currencies as the response to the negative monetary surprises in the 2001 recession, while the Dollar appreciates responding to similar negative monetary surprises during the 2008 recession. The paper further explores possible causes and finds that time-varying status of the currency with higher financial returns may contribute to the new asymmetry.
Journal: Applied Economics
Pages: 789-803
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340578
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340578
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:789-803




Template-Type: ReDIF-Article 1.0
Author-Name: David E. Allen
Author-X-Name-First: David E.
Author-X-Name-Last: Allen
Author-Name: Chialin Chang
Author-X-Name-First: Chialin
Author-X-Name-Last: Chang
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Author-Name: Abhay K Singh
Author-X-Name-First: Abhay K
Author-X-Name-Last: Singh
Title: A cointegration analysis of agricultural, energy and bio-fuel spot, and futures prices
Abstract: 
 This article features an analysis of the cointegration relationships among agricultural commodity, ethanol and Cushing crude oil spot, and future prices. The use of grains for the creation of bio-fuels has sparked fears that these demands are inflating food prices. We analyse approximately 10 years of daily spot and futures prices for corn, wheat, sugar ethanol, and oil prices from Datastream for the period 19 July 2006 to 2 July 2015. The analysis features Engle-Granger pairwise cointegration and partial cointegration. Pairs of series, that are cointegrated, are analysed using Markov-switching VECM and Impulse Response Analysis, which confirms that these markets have significant linkages that vary according to whether they are in low or high volatility regimes.
Journal: Applied Economics
Pages: 804-823
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340581
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340581
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:804-823




Template-Type: ReDIF-Article 1.0
Author-Name: Marinela Adriana Finta
Author-X-Name-First: Marinela Adriana
Author-X-Name-Last: Finta
Author-Name: Bart Frijns
Author-X-Name-First: Bart
Author-X-Name-Last: Frijns
Author-Name: Alireza Tourani-Rad
Author-X-Name-First: Alireza
Author-X-Name-Last: Tourani-Rad
Title: Volatility spillovers among oil and stock markets in the US and Saudi Arabia
Abstract: 
 In this article, we use high frequency data and an identification via changes in volatility approach to assess the volatility spillovers among oil and the US and Saudi Arabian stock markets. We document the existence of asymmetry in contemporaneous spillover effects. Particularly, during the times when oil&#x2019;s trading hours overlap with the US and Saudi Arabian stock markets, the volatility spillover from oil to the stock markets is higher than the other way around. We highlight the importance of taking into consideration the information present during continuous trading hours of oil, especially during simultaneous trading hours with the stock markets. We compare our findings based on our structural VAR with those of a traditional reduced-form VAR, and observe that contemporaneous and intraday effects are necessary to be taken into account since the indirect transmission of volatility occurs through them.
Journal: Applied Economics
Pages: 329-345
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494811
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494811
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:329-345




Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Bai
Author-X-Name-First: Xuelian
Author-X-Name-Last: Bai
Author-Name: Yi Dong
Author-X-Name-First: Yi
Author-X-Name-Last: Dong
Author-Name: Nan Hu
Author-X-Name-First: Nan
Author-X-Name-Last: Hu
Title: Financial report readability and stock return synchronicity
Abstract: 
 In this study, we investigate the impact of firm-specific information-processing cost, proxied by annual report readability, on investors&#x2019; firm-specific information usage, proxied by firm stock return synchronicity. We expect that more readable financial reports would reduce firm-specific information-processing costs and, therefore, reduce stock return synchronicity. We propose a new readability measure and demonstrate that, as the readability of annual reports increases, the firm&#x2019;s future stock return synchronicity decreases. Furthermore, the effect of report readability on stock return synchronicity is more concentrated on firms with low analyst coverage or institutional ownership. Finally, the impact of readability on stock synchronicity is more concentrated on firms with high information asymmetry, such as firms small in size, with high R&amp;D spending, or with high growth. The benefit of incorporating more firm-specific information (e.g. from a more readable financial report) into stock price is consistent with the SECs continuous attempt to make public company reports easier to comprehend. Managers of publicly listed firms should be aware of such a benefit and make their financial reports more readable by incorporating more tables, especially when their firms face high information asymmetry.
Journal: Applied Economics
Pages: 346-363
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495824
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495824
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:346-363




Template-Type: ReDIF-Article 1.0
Author-Name: Zongxin Li
Author-X-Name-First: Zongxin
Author-X-Name-Last: Li
Author-Name: Zhiping Chen
Author-X-Name-First: Zhiping
Author-X-Name-Last: Chen
Author-Name: Yongchang Hui
Author-X-Name-First: Yongchang
Author-X-Name-Last: Hui
Title: Portfolio selection through Maslow&#x2019;s need hierarchy theory
Abstract: 
 Inspired by Maslow&#x2019;s need hierarchy theory, we construct a new portfolio selection framework using the bi-level optimization technique in which the lower-level need relates to safety (low risk) while the upper-level need is concerned with self-actualization (high payoff). Specially, we consider a bi-level portfolio selection model using variance and conditional value-at-risk associated with the lower-level need and upper-level need, respectively. Accordingly, we propose a procedure to solve this bi-level optimization problem without the normal distribution assumption. Empirical study on the American stock market and U.K. stock market shows that our new model can determine optimal portfolios with moderate diversification. Out of sample performance also confirms that in our framework investors can obtain higher returns in a safe way compared to models in the traditional framework.
Journal: Applied Economics
Pages: 364-372
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1496223
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1496223
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:364-372




Template-Type: ReDIF-Article 1.0
Author-Name: Yue Yu
Author-X-Name-First: Yue
Author-X-Name-Last: Yu
Title: A preliminary exploration on stochastic dynamic asset allocation models under a continuous-time sticky-price general equilibrium
Abstract: 
 This article studies asset allocation problems under endogenous macroeconomic dynamics and monetary policy rules, by merging a continuous-time sticky-price general equilibrium model based on the New Keynesian framework with a stochastic dynamic portfolio selection model. Under optimal allocation strategies, the inverse of the Arrow&#x2013;Pratt relative risk aversion function of investors decreases monotonically with a rising risk-free nominal interest rate, and exhibits a U shape with respect to inflation. This shows that, under the premise of an inflation-targeting monetary policy rule, the investors&#x2019; relative inclination for risky assets grows when inflation deviates from its steady state, in expectation for a countervailing nominal policy rate. The article also uses the model to discuss the macro-prudential problem of the feedback effects of the investors&#x2019; intertemporal utility-maximizing behaviour on the economy. Preliminary results show that the existence of risky assets in the economy can have an effect similar to that of the financial accelerator. This gives another possible explanation for the wedge effect beyond the traditional incentive theory.
Journal: Applied Economics
Pages: 373-386
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1497851
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497851
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:373-386




Template-Type: ReDIF-Article 1.0
Author-Name: Mahdi Majbouri
Author-X-Name-First: Mahdi
Author-X-Name-Last: Majbouri
Title: Twins, family size and female labour force participation in Iran
Abstract: 
 Despite the remarkable increase in women&#x2019;s education levels and the rapid fall of their fertility rate in Iran, female labour force participation (FLFP) has remained low. Using the instrumental variable method, this article estimates the causal impact of number of children on mothers&#x2019; participation in the labour market. It finds that having an extra (unplanned) child would only reduce female participation rate for low-educated mothers and mothers with young children, thus having no causal impact on most mothers&#x2019; participation. This result explains why the rapid decline in fertility rates did not increase female participation; rather, other factors should be at play. It hence moves us a step forward in explaining the puzzle of FLFP in Iran. Policy implications are discussed.Abbreviation: FLFP: Female Labour Force Participation; LFP: Labour Force Participation
Journal: Applied Economics
Pages: 387-397
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1497853
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497853
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:387-397




Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Kris Ivanovski
Author-X-Name-First: Kris
Author-X-Name-Last: Ivanovski
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Title: The role of ethnic diversity in sustainable environmental growth: new evidence across different income regions
Abstract: 
 We examine the relationship between ethnic diversity and environmental quality, proxied by carbon dioxide ($${\rm C{O_2}}$$CO2) emissions. Ethnic diversity is captured using indices of ethnic fractionalization. Adopting a supply-demand framework which introduces a model for economic growth, we find that ethnic fractionalization reduces $${\rm C{O_2}}$$CO2 emissions. The negative effect of ethnic diversity on $${\rm C{O_2}}$$CO2 emissions is also consistent across middle and low-income countries as well as high-income countries. However, results suggest that ethnic diversity has a negative effect on growth in middle and low-income countries, but a positive effect on growth in high-income countries. Our findings prove robust to alternative estimation methods.
Journal: Applied Economics
Pages: 398-408
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1497854
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497854
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:398-408




Template-Type: ReDIF-Article 1.0
Author-Name: Habtamu Alem
Author-X-Name-First: Habtamu
Author-X-Name-Last: Alem
Author-Name: Gudbrand Lien
Author-X-Name-First: Gudbrand
Author-X-Name-Last: Lien
Author-Name: J. Brian Hardaker
Author-X-Name-First: J. Brian
Author-X-Name-Last: Hardaker
Author-Name: Atle Guttormsen
Author-X-Name-First: Atle
Author-X-Name-Last: Guttormsen
Title: Regional differences in technical efficiency and technological gap of Norwegian dairy farms: a stochastic meta-frontier model
Abstract: 
 This paper compares technical efficiencies (TEs) and technological gap ratios (TGRs) for dairy farms in regions of Norway, accounting for differences in working environments. We used the state-of-the-art stochastic meta-frontier approach to estimate TEs and TGRs to account for regional heterogeneity, and the &#x2018;true&#x2019; random-effect model to account for farm effects. The dataset used was farm-level balanced panel data for 24&#xA0;years (1992&#x2013;2014), with 5442 observations from 731 dairy farms. The results of the analysis provide empirical evidence of small regional differences in TEs, TGRs, and input use. Furthermore, the results may provide support for the more regionally specific agricultural policy, in terms of support schemes and structural regulations.
Journal: Applied Economics
Pages: 409-421
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1502867
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502867
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:409-421




Template-Type: ReDIF-Article 1.0
Author-Name: David E. Allen
Author-X-Name-First: David E.
Author-X-Name-Last: Allen
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Author-Name: Abhay K. Singh
Author-X-Name-First: Abhay K.
Author-X-Name-Last: Singh
Title: Daily market news sentiment and stock prices
Abstract: 
 	In recent years there has been a tremendous growth in readily available news related to traded assets in international financial markets. This financial news is now available through real-time online sources such as Internet news and social media sources. The increase in the availability of financial news and investor’s ease of access to it has a potentially significant impact on market stock price movement as these news items are swiftly transformed into investors sentiment which in turn drives prices. In this study, we use the Thomson Reuters News Analytics (TRNA) data set to construct a series of daily sentiment scores for Dow Jones Industrial Average (DJIA) stock index constituents. We use these daily DJIA market sentiment scores to study the influence of financial news sentiment scores on the stock returns of these constituents using a multi-factor model. We augment the Fama–French three-factor model with the day’s sentiment score along with lagged scores to evaluate the additional effects of financial news sentiment on stock prices in the context of this model using Ordinary Least Square (OLS) and Quantile Regression (QR) to analyse the effect around the tail of the return distribution. We also conduct the analysis using the seven-day simple moving average (SMA) of the scores to account for news released on non-trading days. Our results suggest that even when market factors are taken into account, sentiment scores have a significant effect on Dow Jones constituent returns and that lagged daily sentiment scores are often significant, suggesting that information compounded in these scores is not immediately reflected in security prices and related return series. The results also indicate that the SMA measure does not have a significant effect on the returns. The analysis using Quantile Regression provides evidence that the news has more impact on left tail compared to the right tail of the returns.
Journal: Applied Economics
Pages: 3212-3235
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564115
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564115
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3212-3235




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Fernandez-Perez
Author-X-Name-First: Adrian
Author-X-Name-Last: Fernandez-Perez
Author-Name: Bart Frijns
Author-X-Name-First: Bart
Author-X-Name-Last: Frijns
Author-Name: Alireza Tourani-Rad
Author-X-Name-First: Alireza
Author-X-Name-Last: Tourani-Rad
Author-Name: Jean-Philippe Weisskopf
Author-X-Name-First: Jean-Philippe
Author-X-Name-Last: Weisskopf
Title: Behavioural heterogeneity in wine investments
Abstract: 
 We introduce a heterogeneous agent model to explain the dynamics of fine wine investments. Our results show evidence of the existence of both fundamentalists – those who trade on mean-reversion towards a fair value – and chartists – those who extrapolate recently observed price trends – in the wine market. Moreover, we document that market participants switch between the two trading strategies, allocating more weight to the strategy that has been the most accurate in forecasting wine index values in the recent past. This switching behaviour can explain the large variations in index values (bubbles and crashes) that are observed in the fine wine market.
Journal: Applied Economics
Pages: 3236-3255
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566686
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566686
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3236-3255




Template-Type: ReDIF-Article 1.0
Author-Name: Howard Qi
Author-X-Name-First: Howard
Author-X-Name-Last: Qi
Author-Name: Jian Shi
Author-X-Name-First: Jian
Author-X-Name-Last: Shi
Author-Name: Yan Alice Xie
Author-X-Name-First: Yan Alice
Author-X-Name-Last: Xie
Title: Default correlation: rating, industry ripple effect, and business cycle
Abstract: 
 For a well-diversified bond portfolio, default risk over the investment horizon is known as the major risk and the risk is largely from correlated defaults. While plenty of theoretical work about default correlation has been developed, empirical studies on default correlation have not made much progress in the past two decades. In this paper, we fill this void in the literature by thoroughly investigating how default correlation changes across different bond ratings, over different time horizons, and across different industries over the sample period of 1970 to 2014. In particular, we examine how rating-based default correlations change before, during, and after recessions. More importantly, we reveal the ‘industry ripple effect’ that default correlations are low within upstream industries but become higher within downstream industries along the structure of the supply chain. Also, default correlations are relatively high between upstream industries and downstream industries.
Journal: Applied Economics
Pages: 3256-3273
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566689
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566689
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3256-3273




Template-Type: ReDIF-Article 1.0
Author-Name: Catalina Hurwitz
Author-X-Name-First: Catalina
Author-X-Name-Last: Hurwitz
Author-Name: Wen-Hsiu Chou
Author-X-Name-First: Wen-Hsiu
Author-X-Name-Last: Chou
Author-Name: Chun-Hao Chang
Author-X-Name-First: Chun-Hao
Author-X-Name-Last: Chang
Author-Name: Arun Prakash
Author-X-Name-First: Arun
Author-X-Name-Last: Prakash
Title: The determinants of firms’ global diversification decisions
Abstract: 
 Why do some firms choose to be ‘born global’ and become early internationalizing firms (EIFs) while others choose to be ‘born-again global’ and develop into late internationalizing firms (LIFs)? What are the main factors impacting a firm’s decision on the timing of global diversification? Based on the theories of diversification, this study examines the role of peer influence and desire for growth on the timing of a firm’s globalization decision. We further study the idiosyncratic risk and the adoption of technological innovation hypotheses on global diversification. Our results document that innovation efficiency strongly enhances EIFs’ propensity to global diversification. On the other hand, peer pressure and idiosyncratic risk level significantly influence EIFs not to globalize. In contrast, LIFs are positively influenced by their industry peers, showing how young and mature companies respond to the market competition in a different manner.
Journal: Applied Economics
Pages: 3274-3292
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566690
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566690
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3274-3292




Template-Type: ReDIF-Article 1.0
Author-Name: Fabien Candau
Author-X-Name-First: Fabien
Author-X-Name-Last: Candau
Author-Name: Geoffroy Guepie
Author-X-Name-First: Geoffroy
Author-X-Name-Last: Guepie
Author-Name: Julie Schlick
Author-X-Name-First: Julie
Author-X-Name-Last: Schlick
Title: Moving to autarky, trade creation and home market effect: an exhaustive analysis of regional trade agreements in Africa
Abstract: 
 This article analyses the effects of Regional Trade Agreements (RTAs) on bilateral trade in Africa. A structural gravity equation is estimated over the period 1955–2014. The overall effect of RTAs on African trade is strong, but depending on the nature of the RTAs, there is a decreasing impact over time. While Economic Integration Agreements (EIAs) still favour trade in Africa, there was no trade creation coming from Free Trade Agreements between 1990 and 2014. However, the provisions of RTAs do not have a negative impact on trade: agreements that include behind-the-border policies do not significantly deter bilateral trade. To explain the declining impact of RTAs, we look at their redistributive impact between members states. There is no evidence that large countries disproportionally export diversified goods due to RTAs (no ‘home effect’). Countries with a good international network (‘hub effect’) benefited more than other countries of RTAs between 1955 and 1990 but this is however less true on the most recent period (1990–2014).
Journal: Applied Economics
Pages: 3293-3309
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566691
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566691
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3293-3309




Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Han Liu
Author-X-Name-First: Wei-Han
Author-X-Name-Last: Liu
Title: An empirical re-examination of extreme tail behavior: testing the assumptions of the power laws and the generalized Pareto distribution on the financial series
Abstract: 
 This study investigates whether the power laws and the associated generalized Pareto distribution (GPD) exist in the extreme tail behavior of financial return series. We include 10 series of five major financial categories over the period 1971–2018 for empirical analysis. For the former assumption, we test three representative power-law distributions. For the latter, we employ an innovative bootstrap goodness-of-fit test of GPD modeling. We also discuss the relationship between both assumptions. The empirical outcomes indicate that both assumptions do not necessarily hold for all tail series due to the outlying observations. The rejection of the power laws assumption leads to the rejection of the GPD assumption. This rejection does not promise the non-rejection of power laws either. However, the non-rejection of either assumption does not imply non-rejection of the other assumption. Power-law distribution and exponential distribution outperform log-normal distribution in tail fitting. GPD fits better at the 1% quantile level than at the 5% level. Overall, we need to acknowledge the considerable gap between the goodness-of-fit testing outcomes of both the power laws and GPD assumptions.
Journal: Applied Economics
Pages: 3310-3324
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1574968
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1574968
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3310-3324




Template-Type: ReDIF-Article 1.0
Author-Name: Luigino Bruni
Author-X-Name-First: Luigino
Author-X-Name-Last: Bruni
Author-Name: Dalila De Rosa
Author-X-Name-First: Dalila
Author-X-Name-Last: De Rosa
Author-Name: Giovanni Ferri
Author-X-Name-First: Giovanni
Author-X-Name-Last: Ferri
Title: Cooperatives and happiness. Cross-country evidence on the role of relational capital
Abstract: 
 Why is the share of happy people higher in some countries than in their equally developed neighbours? We conjecture that the apparent contradiction might depend on a country’s endowment of relational capital, which we proxy empirically with the extent of cooperativeness. In particular, within the black box of social capital, we consider relational capital as the outcome of the civil economy paradigm and use cooperativeness as the macro and objective proxy of long term face-to-face interaction. Compiling an index of the importance of the cooperative sector, we test whether more cooperativeness associates with more happiness controlling for countries’ HDI and other control variables. Checking for endogeneity, using various country samples, and through different regression methods we find support for our hypothesis. This suggests that, indeed, an institutionalized cooperative culture can promote happiness.
Journal: Applied Economics
Pages: 3325-3343
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1575944
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1575944
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3325-3343




Template-Type: ReDIF-Article 1.0
Author-Name: Ningjing Wang
Author-X-Name-First: Ningjing
Author-X-Name-Last: Wang
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: China’s regional rebound effect based on modelling multi-regional CGE
Abstract: 
 Improving energy efficiency has been regarded as an important measure to reduce energy consumption, yet the rebound effect has greatly shrunken the energy saving consequences of this measure. To investigate regional rebound effect in China, a multi-region computed general equilibrium (CGE) model is established in this paper. The results show that there are obvious regional differences in the rebound effect in China. The primary energy rebound effects are positive, whereas the production-side power rebounds are below zero in most regions. We also simulated the energy subsidy reform scenarios, which indicates that reducing or even eliminating coal and oil subsidies will increase the production-side rebounds. Finally, feasible policy recommendations are put forward based on the results.
Journal: Applied Economics
Pages: 5712-5726
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616076
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616076
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5712-5726




Template-Type: ReDIF-Article 1.0
Author-Name: Cinthia Cabral Da Costa
Author-X-Name-First: Cinthia Cabral Da
Author-X-Name-Last: Costa
Author-Name: Heloisa Lee Burnquist
Author-X-Name-First: Heloisa Lee
Author-X-Name-Last: Burnquist
Author-Name: Joaquim José Martins Guilhoto
Author-X-Name-First: Joaquim José Martins
Author-X-Name-Last: Guilhoto
Author-Name: Kennya B. Siqueira
Author-X-Name-First: Kennya B.
Author-X-Name-Last: Siqueira
Title: Should special agricultural safeguard be ignored? An evaluation for dairy trade
Abstract: 
 This study measured the impact of special agricultural safeguards (SSG) on dairy products imports by the US and Japan. It was observed that dairy products have been the most affected by this protectionist measures, and that these countries are relevant importers that impose SSG. The tariff lines subject to SSG were selected, and the period of analysis was from 1995 to 2015. The results showed that the impact of SSG applied by the US was much higher than for Japan. The overall estimated value of imports that did not happen due to the application of SSGs was approximately USD 2 billion. Specifically for the Brazilian economy, the condensed milk not exported to the US due to SSG applied cost the country BRL 345 million in GDP value and almost 4.5 thousand jobs. These results might be underestimating these effects, since the SSG tariff was not subject to calculation in several years.
Journal: Applied Economics
Pages: 5727-5740
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619016
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619016
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5727-5740




Template-Type: ReDIF-Article 1.0
Author-Name: Tingting Tong
Author-X-Name-First: Tingting
Author-X-Name-Last: Tong
Author-Name: Haizheng Li
Author-X-Name-First: Haizheng
Author-X-Name-Last: Li
Author-Name: Samuel Greiff
Author-X-Name-First: Samuel
Author-X-Name-Last: Greiff
Title: Human capital and leadership: the impact of cognitive and noncognitive abilities
Abstract: 
 We conduct an economic analysis about the impact of human capital on an individual’s potential of becoming a leader based on data from the Programme for the International Assessment of Adult Competencies Survey (PIAAC). Our human capital indicators include not only traditional measures such as education and experience, but also various measures of cognitive and noncognitive ability. Our cognitive ability measures include numeracy, literacy, and problem solving abilities, and noncognitive ability measures include perseverance, motivation to learn, and social trust. We specifically investigate the effect of measurement error and reverse causality on the estimation results. We find that problem-solving ability is the most important in affecting leadership among cognitive ability measures, and perseverance shows the strongest impact among noncognitive ability measures. As a leader supervises more employees, the role of cognitive and noncognitive ability becomes more critical.
Journal: Applied Economics
Pages: 5741-5752
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619022
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619022
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5741-5752




Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Eleonora Pierucci
Author-X-Name-First: Eleonora
Author-X-Name-Last: Pierucci
Author-Name: Frank Fu
Author-X-Name-First: Frank
Author-X-Name-Last: Fu
Title: Risk sharing role of foreign aid in developing countries
Abstract: 
 The effects of foreign aid on economic growth have been extensively investigated over the past 40 years. However, even though foreign aid can be a significant source of insurance against domestic output shocks for developing countries, its risk-sharing role has not been well explored. Using a sample of 22 developing countries over the period 2003–2013, we estimate the degree of income smoothing generated by foreign aid serving as an effective channel of international income smoothing. In particular, for the period 2003–2008, we estimate that foreign aid offset about 4% of the domestic output shocks. Furthermore, we investigate the determinants of the extent of risk sharing via foreign aid, recognizing the diversification of the originating countries as a key factor. Surprisingly, humanitarian aid seems to have a negative effect, which might be explained by its predominant role in the short run.
Journal: Applied Economics
Pages: 5753-5766
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619024
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619024
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5753-5766




Template-Type: ReDIF-Article 1.0
Author-Name: Fengyun Liu
Author-X-Name-First: Fengyun
Author-X-Name-Last: Liu
Author-Name: Honghao Ren
Author-X-Name-First: Honghao
Author-X-Name-Last: Ren
Author-Name: Chuanzhe Liu
Author-X-Name-First: Chuanzhe
Author-X-Name-Last: Liu
Title: Housing price fluctuations and financial risk transmission: a spatial economic model
Abstract: 
 Financial risk derived from housing price fluctuations in China garnered much public concern recently. Based on the theoretical analyses of the transmission of financial risk from housing price fluctuations, this paper establishes panel spatial Durbin models to empirically analyse housing price fluctuations and financial risks transmission from a spatial economic perspective. Employing the panel provincial data from 1999–2015, we conduct an analysis on the 30 provinces in China as well as a comparison among the Eastern, Middle and Western regions of China. The results indicate that: (1) The soaring housing prices driven by bank credit, real estate developers’ heavy investment, local governments’ land revenue and individuals and households demands leads to financial risk in various sectors; (2) due to the ‘substitution effect’, the capital agglomeration in metropolis from bank credits, real estate developers, and individuals and households furthers the amassment of financial risks; (3) housing prices have a significant spatial contagion effect throughout the country, and financial risk could directly transmit across provinces through housing price fluctuations; (4) financial risks could indirectly transmit across provinces via the ‘imitative behaviour’ or ‘driving effect’ of different sectors for different regions of China.
Journal: Applied Economics
Pages: 5767-5780
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619025
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619025
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5767-5780




Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Jeremy Nguyen
Author-X-Name-First: Jeremy
Author-X-Name-Last: Nguyen
Author-Name: Martin O’Brien
Author-X-Name-First: Martin
Author-X-Name-Last: O’Brien
Title: Asymmetric responses of house prices to changes in the mortgage interest rate: evidence from the Australian capital cities
Abstract: 
 We examine the dynamic and asymmetric responses of house prices to changes in mortgage interest rates in Australia from January 1995 to November 2017. We propose a threshold intervention model to distinguish between the effects of positive versus negative changes in the standard variable interest rate. The results indicate that rising interest rates decrease house prices more than falling interest rates increase them. For example, a 1% decrease in interest rates increases Sydney’s house prices by 0.7%, whereas a 1% increase leads to a 1.5% fall. The findings also support the view that when interest rates are on the rise, house prices in larger capital cities such as Sydney and Melbourne fall faster than in their smaller counterparts. Our findings imply that a rise in interest rates may thus lead to sharp, fast and significant falls in house prices, a phenomenon which will not simply be a symmetric unwinding of earlier price increases.
Journal: Applied Economics
Pages: 5781-5792
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619026
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619026
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5781-5792




Template-Type: ReDIF-Article 1.0
Author-Name: William E. Maples
Author-X-Name-First: William E.
Author-X-Name-Last: Maples
Author-Name: B. Wade Brorsen
Author-X-Name-First: B. Wade
Author-X-Name-Last: Brorsen
Author-Name: Xiaoli L. Etienne
Author-X-Name-First: Xiaoli L.
Author-X-Name-Last: Etienne
Title: Hedging effectiveness of fertilizer swaps
Abstract: 
 The fertilizer swaps market is a potential tool to protect against fertilizer price risk. The swaps evaluated here are cash settled using The Fertilizer Index. Hedge ratios and hedging effectiveness are calculated for urea and DAP diammonium phosphate (DAP)) swaps. Urea and DAP swaps perform poorly as a hedging tool over a one-week horizon. As the hedging horizon increases, the hedging effectiveness of swaps improves. The swaps are more effective in mitigating risk across ocean freight routes than across inland routes. The limited hedging effectiveness is due to high spatial basis risk in fertilizer markets.
Journal: Applied Economics
Pages: 5793-5801
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1624916
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624916
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5793-5801




Template-Type: ReDIF-Article 1.0
Author-Name: Syed Abul Hasan
Author-X-Name-First: Syed Abul
Author-X-Name-Last: Hasan
Title: Price hike of staple food, nutritional impact and consumption adjustment: evidence from the 2005&#x2013;2010 rice price increase in rural Bangladesh
Abstract: 
 This paper studies the nutritional impact of the rice price increase between 2005 and 2010 on households in rural Bangladesh and their resulting adjustment in consumption of rice, non-rice food and non-food items. We compare net rice buyers, who suffer from a negative income effect, with self-sufficient households that do not suffer from any such effect. Our findings indicate that rural households in Bangladesh cope well with the surge in the domestic rice price as indicated by the absence of any effect on their calorie intake and dietary diversity. In fact, both types of households similarly change their consumption of rice, non-rice grain, pulses, protein, fruits and other items. Furthermore, we do not find any evidence of buyers&#x2019; switching towards low-quality items in a food group. In a separate analysis, we compare net rice sellers with self-sufficient households and arrive at a similar conclusion. In both cases, income plays a crucial role in the consumption of non-rice food and non-food items, indicating the importance of effective income support programs at the time of price shocks in staple food items.
Journal: Applied Economics
Pages: 743-761
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1508870
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1508870
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:743-761




Template-Type: ReDIF-Article 1.0
Author-Name: Amarakoon Bandara
Author-X-Name-First: Amarakoon
Author-X-Name-Last: Bandara
Title: Youth labor market expectations and job matching in sub-Saharan Africa: evidence from school-to-work transition surveys
Abstract: 
 In this paper, we investigate the factors that influence youth labour market expectations and outcomes. We also perform a job matching exercise to understand youth labour market dynamics in Sub-Saharan Africa. Our results show that youth education is an influential factor of youth employment expectations and employment, ceteris paribus. Higher educational attainments have a great impact on expecting and securing better jobs, particularly in the technical and professional fields. Youth with low educational attainments, particularly primary education and lower, have a higher tendency to expect to be employed in occupations with low job complexity. Our results indicate a severe job-skill mismatch in all occupational categories, both before and after the youth&#x2019;s transition into the labour market. Using education as the only selection criterion, we found that less than 10 per cent of employment expectations match with skills required while 55 per cent and 34 per cent are under or over-educated for the jobs expected, respectively. Over and under education is a notable feature in youth labour markets in Sub-Saharan Africa. About 47 per cent of employed youth in the sample are overqualified for their respective jobs while 28 per cent are under qualified.
Journal: Applied Economics
Pages: 762-780
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1512742
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1512742
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:762-780




Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa
Author-X-Name-Last: Awaworyi Churchill
Author-Name: Ahmed Salim Nuhu
Author-X-Name-First: Ahmed Salim
Author-X-Name-Last: Nuhu
Author-Name: Karely Lopez
Author-X-Name-First: Karely
Author-X-Name-Last: Lopez
Title: Persistence of gender inequality: the role of ethnic divisions
Abstract: 
 Gender inequality remains a fundamental challenge for global policymakers given that it has detrimental implications for growth and human capital formation. However, studies examining the roots of gender inequality, and what determines the level of inequality are relatively scant. In this study, we seek to contribute to the literature that examines the roots of gender inequality and thus, our objective is to examine the impact of ethnic diversity on gender inequality. We argue that the level of ethnic diversity within a country plays a role in either deepening or bridging gender gaps. Using indices of ethnic fractionalization, we examine the effects of ethnic diversity on measures of gender inequality such as the gender inequality index, and its associated dimensions of empowerment, educational attainment and labour market outcomes. Our evidence suggests that ethnic diversity widens existing gender gaps. We discuss several mechanisms through which ethnic diversity may lead to the increase of existing gender gaps, and lay out various policy approaches to address gender inequality.
Journal: Applied Economics
Pages: 781-796
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1513635
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1513635
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:781-796




Template-Type: ReDIF-Article 1.0
Author-Name: Linyue Li
Author-X-Name-First: Linyue
Author-X-Name-Last: Li
Author-Name: Zhixian Sun
Author-X-Name-First: Zhixian
Author-X-Name-Last: Sun
Author-Name: Xiang Long
Author-X-Name-First: Xiang
Author-X-Name-Last: Long
Title: An empirical analysis of night-time light data based on the gravity model
Abstract: 
 This article&#xA0;aims to explore the feasibility of applying night-time light data to the study of trade. Based on 61 countries&#x2019; panel data from 1995 to 2012, this research used night-time light data, as the substitute for GDP, to study trade development based on the traditional gravity model. The method of ordinary least squares, Poisson pseudo-maximum-likelihood and two-stage least squares were used. The results show that geographical distance, country borders and regional agreements have a significant effect on China&#x2019;s trade with other Belt and Road countries, which verifies the validity of trade research based on night-time light data analysis. Additionally, comparisons reveal the trade trends predicted by night-time light data from 1996 to 2012, were highly consistent with the actual data. This article stands as the first study to apply night-time light data to the gravity model in the research on trade between China and other Belt and Road countries. Breaking new ground, this research uses night-time light data as an economic indicator to study trade, in combination with micro foundations and the latest findings of the gravity model. Thus, this article deepens the understanding of trade analysis and contributing to the field of related researches.
Journal: Applied Economics
Pages: 797-814
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1523612
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1523612
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:797-814




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Sung Kim
Author-X-Name-First: Jun Sung
Author-X-Name-Last: Kim
Author-Name: Bin Jiang
Author-X-Name-First: Bin
Author-X-Name-Last: Jiang
Author-Name: Chuhui Li
Author-X-Name-First: Chuhui
Author-X-Name-Last: Li
Author-Name: Hee-Seung Yang
Author-X-Name-First: Hee-Seung
Author-X-Name-Last: Yang
Title: Returns to women&#x2019;s education using optimal IV selection
Abstract: 
 This paper investigates returns to women&#x2019;s education by applying an optimal IV selection approach, post-Lasso IV estimation, which improves the first-stage predictive relationship between an endogenous regressor and instruments. Using the 2010 American Community Survey, we find that an extra year of education increases married women&#x2019;s own income by $4,480 and spouse income by $8,822. Our findings indicate that 53% of the increase in women&#x2019;s consumption by education is attributed to the marriage market, and thus, we conclude that the marriage market is the primary channel through which education improves women&#x2019;s well-being. The results demonstrate the advantages of the post-Lasso approach: The resulting two-stage least squares estimator maintains efficiency without increasing finite sample bias and is less subject to the inconsistency problem when some instruments are invalid; This differs from the results using the instrument of birth quarters only, which is mostly applied in studies on returns to education.
Journal: Applied Economics
Pages: 815-830
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524126
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524126
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:815-830




Template-Type: ReDIF-Article 1.0
Author-Name: Thierno Amadou Barry
Author-X-Name-First: Thierno Amadou
Author-X-Name-Last: Barry
Author-Name: Amine Tarazi
Author-X-Name-First: Amine
Author-X-Name-Last: Tarazi
Author-Name: Paul Wachtel
Author-X-Name-First: Paul
Author-X-Name-Last: Wachtel
Title: Falling under the control of a different type of owner:risk-taking implications for banks
Abstract: 
 European banks have experienced significant changes in the type of entity that owns them (another bank, an individual or a family, a non-financial company, an institutional investor, a government, a foreign entity, a domestic entity&#x2026;). In this paper, we look at the influence of ownership type changes on risk and profitability. Working with a panel of commercial banks from 17 European countries, we find that although banks that experience a change in ownership type do not exhibit lower or higher risk or profitability than other banks, their risk and profitability is significantly affected after the change takes place. The type of the acquirer plays a significant role in explaining the observed changes. When the acquirer is a non-financial company, the state or an institutional investor, the level of risk increases after the change while the level of profitability remains unchanged. Conversely, when the acquirer is a bank, we find that the level of risk-adjusted profitability decreases. Banks acquired by a different type of owner during the global financial crisis do not perform better or worse than they did before.
Journal: Applied Economics
Pages: 831-847
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524127
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524127
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:831-847




Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: George Kambouris
Author-X-Name-First: George
Author-X-Name-Last: Kambouris
Title: The sources of momentum in international government bond returns
Abstract: 
 This study aims to offer a new explanation for the momentum effect in international government bonds. Using cross-sectional and time-series tests, we examine a sample of bonds from 22 countries for the years 1980 through 2018. We document significant momentum profits that are not attributable to bond-specific risk factors, such as volatility or credit risk. The global bond momentum is driven by the returns on underlying foreign exchange rates. Controlling for currency movements fully explains the abnormal returns on momentum strategies in international government bonds. The results are robust to many considerations including alternative sorting periods, portfolio construction methods, as well as subperiod and subsample analysis.
Journal: Applied Economics
Pages: 848-857
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524132
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524132
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:848-857




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Sheng Kao
Author-X-Name-First: Yu-Sheng
Author-X-Name-Last: Kao
Author-Name: Hao-Yang Sun
Author-X-Name-First: Hao-Yang
Author-X-Name-Last: Sun
Author-Name: Chien-Chung Nieh
Author-X-Name-First: Chien-Chung
Author-X-Name-Last: Nieh
Author-Name: Kai Zhao
Author-X-Name-First: Kai
Author-X-Name-Last: Zhao
Title: Does microtherm boost pharmaceutical companies’ market capitalization returns?
Abstract: 
 The purpose of this study was to survey the relationship between the temperature factors and market capitalization returns of pharmaceutical companies by analysing both the daily and weekly frequency data in Taiwan. The threshold regression model with the GJR-GARCH process was applied for examination in this study; we found that pharmaceutical companies’ market capitalization returns could be boosted after exposure to extremely low temperatures for a period of time. Besides, the delayed effect of cold weather is demonstrated to exist. This phenomenon can be illustrated by epidemiological evidence-related mental factors, not by traditional behavioural finance. Moreover, lower weekly average temperatures are beneficial for investors to gain weekly pharmaceutical companies’ market capitalization returns. We are of the opinion that our findings offer an insightful suggestion for investors to buy pharmaceutical stocks at an opportune moment.
Journal: Applied Economics
Pages: 1522-1535
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368988
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368988
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1522-1535




Template-Type: ReDIF-Article 1.0
Author-Name: N. Arfaoui
Author-X-Name-First: N.
Author-X-Name-Last: Arfaoui
Title: Eco-innovation and regulatory push/pull effect in the case of REACH regulation: empirical evidence based on survey data
Abstract: 
 Numerous theoretical and empirical studies provide evidence of a positive correlation between eco-innovation and environmental regulation. However, few analyses explain how environmental policies drive eco-innovation. This article studies eco-innovation-friendly mechanisms in the design of European REACH (Registration, Evaluation, Authorization of Chemicals) regulation. The aim of REACH, which became effective in 2007, is ‘to ensure a high level of protection of human health and the environment while improving competitiveness and innovation’ which makes it appropriate and original for analysing the relationship between environmental regulation and eco-innovation. The primary contribution of this article is to provide a new theoretical and empirical perspective on eco-innovation by showing how design regulation is able to push and pull the environment innovation, based on an original survey related to REACH regulation. The econometric model shows that (1) regulatory-push mechanisms seem to be more important drivers than regulatory-pull mechanisms; (2) the process of authorization and the obligation to transmit information throughout the supply chain play an important role in ‘pushing’ eco-innovation, suggesting that policymakers should promote new ‘green knowledge’ to encourage eco-innovation; (3) extending obligations has a significantly positive effect on ‘pulling’ eco-innovation and (4) only well-designed instruments, appropriate for the techno-industrial and institutional contexts in which they are to be applied, lead to innovation.
Journal: Applied Economics
Pages: 1536-1554
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368989
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368989
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1536-1554




Template-Type: ReDIF-Article 1.0
Author-Name: Tania Lopez
Author-X-Name-First: Tania
Author-X-Name-Last: Lopez
Author-Name: Adalbert Winkler
Author-X-Name-First: Adalbert
Author-X-Name-Last: Winkler
Title: The challenge of rural financial inclusion – evidence from microfinance
Abstract: 
 Financial inclusion is said to foster development and growth. However, progress in financial inclusion has been slow in rural areas where poverty is most pronounced. This is often attributed to higher transaction costs, higher risks and a more unfavourable contracting environment which makes it more difficult for financial institutions to achieve and maintain sustainability in rural compared to urban areas. Based on data covering 772 microfinance institutions (MFIs) over the period 2008–2013, we test whether rural financial inclusion, notably lending to rural borrowers, is hampered by stronger sustainability challenges than inclusion in urban markets. Our results suggest that a higher share of rural borrowers has no direct effect on MFI sustainability. However, we find that MFIs with a higher share of rural borrowers are less able to exploit economies of scale and productivity effects. Thus, our results provide support for the view that sustainability challenges make it more difficult to achieve progress in financial inclusion in rural than in urban areas.
Journal: Applied Economics
Pages: 1555-1577
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368990
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368990
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1555-1577




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Kruppe
Author-X-Name-First: Thomas
Author-X-Name-Last: Kruppe
Author-Name: Julia Lang
Author-X-Name-First: Julia
Author-X-Name-Last: Lang
Title: Labour market effects of retraining for the unemployed: the role of occupations
Abstract: 
 We analyse the impact of retraining for unemployed low-skilled job-seekers in Germany. This extensive training programme leads to a formal vocational degree, which is often required to access certain professions. Applying statistical matching methods, we find that on average, after a period with large lock-in effects, retraining strongly increases the employment probability of participants, especially women. We add to the literature by estimating the employment effects for different occupations for which participants are trained. Our results show that there are substantial differences depending on the occupation. As the composition of trained occupations differs for men and women, segregation could be a driver of higher employment effects for women. However, comparisons of men and women trained for the same occupations reveal that even after controlling for segregation, women profit more from retraining. While caseworkers are instructed to choose professions with high labour demand, other aspects, such as working conditions, preferences and aptitudes of participants, should be crucial in the choice of a suitable occupation. An individual assessment of the suitability of an occupation could therefore improve the overall effectiveness of the programme.
Journal: Applied Economics
Pages: 1578-1600
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368992
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368992
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1578-1600




Template-Type: ReDIF-Article 1.0
Author-Name: Haileslasie Tadele
Author-X-Name-First: Haileslasie
Author-X-Name-Last: Tadele
Author-Name: Helen Roberts
Author-X-Name-First: Helen
Author-X-Name-Last: Roberts
Author-Name: Rosalind H. Whiting
Author-X-Name-First: Rosalind H.
Author-X-Name-Last: Whiting
Title: Microfinance institutions’ transparency in Sub-Saharan Africa
Abstract: 
 This study analyses the impact of the ownership structure and macro-level factors on Microfinance institutions’ (MFIs) transparency in Sub-Saharan Africa (SSA). Using cross-sectional data from 223 MFIs in 11 countries, we find that MFI transparency in SSA is low and highly variable. Our results indicate that larger MFIs and non-governmental organizations (NGOs) are associated with greater transparency. Greater transparency of NGOs is consistent with the need to sustain and attract donor funding. Country-level resources, such as the level of financial sector development, also impact MFI transparency.
Journal: Applied Economics
Pages: 1601-1616
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368993
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368993
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1601-1616




Template-Type: ReDIF-Article 1.0
Author-Name: Tom Lähner
Author-X-Name-First: Tom
Author-X-Name-Last: Lähner
Title: Inconsistent voting behaviour in the FOMC
Abstract: 
 This article uses transcript data to examine determinants of inconsistent voting behaviour in the Federal Open Market Committee (FOMC) in the period 1989–2008. Inconsistent voting behaviour occurs if a member shows disagreement on the interest rate proposed by the chairman in the policy go-around, but this member agrees in the formal vote. Results show that after the 1993’s increase in central bank transparency, the probability of casting inconsistent votes decreases significantly, on average by 3.3 percentage points. FOMC members with longer tenure on the committee have a lower probability of casting inconsistent votes. Further results suggest that board members and bank presidents differ significantly, with bank presidents casting inconsistent votes more often than board members do. This relation holds true for gender as well, with female members casting more inconsistent votes than males. In addition, political aspects and career backgrounds also contribute to explaining inconsistent voting behaviour in the FOMC. Conditional effects reveal that after the change in transparency, differences between board members and bank presidents remain, whereas differences between male and female members have diminished. What is more, FOMC members with a career in the government sector have been strongly affected by the regime shift in transparency.
Journal: Applied Economics
Pages: 1617-1643
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368994
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368994
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1617-1643




Template-Type: ReDIF-Article 1.0
Author-Name: Sun-Young Park
Author-X-Name-First: Sun-Young
Author-X-Name-Last: Park
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Title: The public value of improving a weather forecasting system in Korea: a choice experiment study
Abstract: 
 The Korean government plans to improve the quality of its weather forecasting system in order to increase its public utility. The benefits arising from the implementation of this plan should be measured. To this end, this study applies a choice experiment to four attributes: the update frequency of both short- and medium-range forecasts, and the accuracy of both. A survey of 1000 randomly selected households was undertaken in Korea. In the study results, the marginal willingness-to-pays, respectively, for one more update of the short-range forecast per day, for a 1% increase in the accuracy of the short-range forecast, for changing the update frequency of the medium-range forecast from once a day (reference level) to twice a day, and for a 1% increase in the accuracy of the medium-range forecast as a result of improving the weather forecast service were estimated to be KRW 499.3 (USD 0.45), 108.3 (0.10), 346.5 (0.31), and 80.9 (0.07) per household per month. The findings can provide policy-makers with useful information for both evaluating and planning improvements in the weather forecasting system.
Journal: Applied Economics
Pages: 1644-1658
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368995
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368995
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1644-1658




Template-Type: ReDIF-Article 1.0
Author-Name: Frank Jensen
Author-X-Name-First: Frank
Author-X-Name-Last: Jensen
Author-Name: Christian Elleby
Author-X-Name-First: Christian
Author-X-Name-Last: Elleby
Author-Name: Katell G. Hamon
Author-X-Name-First: Katell G.
Author-X-Name-Last: Hamon
Author-Name: Jos op de Weegh
Author-X-Name-First: Jos op de
Author-X-Name-Last: Weegh
Title: Testing theoretical explanations for investment behaviour in the Dutch beam trawler fishery in the North Sea
Abstract: 
 In this study, we investigate whether the neoclassical economic theory, capital market frictions or preference-based theory can explain investment behaviour in the Dutch beam trawler fishery in the North Sea. By presenting a number of estimations, we show that vessels conducting pulse fishing invest substantially more than similar vessels undertaking conventional fishing, even after controlling for differences in such variables as capital stock, prices, profits and quotas. One possible explanation for this result is that vessel owners may obtain a separate benefit from investing in pulse fishing.
Journal: Applied Economics
Pages: 2233-2248
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1540855
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540855
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2233-2248




Template-Type: ReDIF-Article 1.0
Author-Name: Madhu S. Mohanty
Author-X-Name-First: Madhu S.
Author-X-Name-Last: Mohanty
Title: Step-by-step computation of corrected asymptotic variance-covariance matrices of two-stage estimators in a simultaneous equations model with a mixture of four continuous and binary dependent variables
Abstract: 
 The current study presents easily computable formulas for asymptotic variance-covariance matrices of the two-stage estimators in a simultaneous equation model with a mixture of four continuous and binary dependent variables. For the sake of econometrics practitioners, the study uses an illustrative example from the current literature and demonstrates step-by-step computation of these variance-covariance matrices by using the matrix routine of a popular econometric software.
Journal: Applied Economics
Pages: 2249-2265
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1540856
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540856
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2249-2265




Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa
Author-X-Name-Last: Awaworyi Churchill
Title: The macroeconomy and microfinance outreach: a panel data analysis
Abstract: 
 This study examines the effects of macroeconomic and institutional factors on microfinance institution (MFI) outreach. To capture the performance of the macroeconomy, we include proxies for institutional quality, economic growth, FDI inflow, unemployment rate, inflation and the prevalence of wage-earning jobs. Further, we examine effects on outreach along the dimensions of outreach depth and outreach breadth. Using data on 1526 MFIs from 99 countries over the period 2000 to 2015, our results suggest that environments characterised by high levels of economic performance and good institutions tend to hinder outreach performance. These results suggest that MFIs depend on a poor economy to thrive given the informal nature of microfinance.
Journal: Applied Economics
Pages: 2266-2274
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1540857
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540857
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2266-2274




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Lloyd-Smith
Author-X-Name-First: Patrick
Author-X-Name-Last: Lloyd-Smith
Author-Name: Henry An
Author-X-Name-First: Henry
Author-X-Name-Last: An
Title: Are corporate social responsibility and advertising complements or substitutes in producing firm reputation?
Abstract: 
 A firm&#x2019;s reputation is one of the critical drivers of success, and two of the key levers firms use to influence their perceived reputation are corporate social responsibility (CSR) and advertising. The relationship between CSR and advertising is important because whether they are complements or substitutes has different implications for how firms use these activities. Using a unique panel dataset of US-listed companies between 2005 and 2014, we estimate flexible production functions to identify whether CSR and advertising act as complements or substitutes in the production of firm reputation. A secondary motivation of this paper is to examine whether the use of different stakeholder ratings of firm reputation matters. We find evidence consistent with advertising and CSR being substitutes toward the production of firm reputation. Our results also show that advertising, own-firm CSR activities, and industry-level CSR spillovers contribute positively to firm reputation. Lastly, we find that the effects of CSR and advertising vary across the stakeholder groups (general public, business executives, or CSR experts) used in the analysis.
Journal: Applied Economics
Pages: 2275-2288
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1540858
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540858
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2275-2288




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Moran
Author-X-Name-First: Kevin
Author-X-Name-Last: Moran
Author-Name: Simplice Aim&#xE9; Nono
Author-X-Name-First: Simplice Aim&#xE9;
Author-X-Name-Last: Nono
Author-Name: Imad Rherrad
Author-X-Name-First: Imad
Author-X-Name-Last: Rherrad
Title: Does confidence data help forecast business cycles? New evidence from Canada
Abstract: 
 This paper assesses the contribution of confidence &#x2013; or sentiment &#x2013; data for predicting Canadian economic slowdowns. A probit framework is applied to an indicator of the status of the Canadian business cycle produced by the OECD. Explanatory variables include all available Canadian data on sentiment (from four distinct surveys) as well as macroeconomic and financial data. Sentiment data are introduced either as individual variables, as simple averages (such as confidence indices) and as confidence factors extracted from larger datasets containing all available sentiment data. Results indicate that the full potential of confidence data for forecasting Canadian business cycles obtains when factor models are used and all confidence data are utilized.
Journal: Applied Economics
Pages: 2289-2312
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1542119
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1542119
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2289-2312




Template-Type: ReDIF-Article 1.0
Author-Name: Deni Mazrekaj
Author-X-Name-First: Deni
Author-X-Name-Last: Mazrekaj
Author-Name: Kristof De Witte
Author-X-Name-First: Kristof
Author-X-Name-Last: De Witte
Author-Name: Sarah Vansteenkiste
Author-X-Name-First: Sarah
Author-X-Name-Last: Vansteenkiste
Title: Labour market consequences of a high school diploma
Abstract: 
 This article compares the labour market outcomes of high school dropouts to high school graduates who did not enrol into higher education, but immediately entered the labour market. Using parental educational background as an instrument on a rich administrative dataset in the Flemish Region of Belgium, we find no returns to a high school diploma on average. However, these results hide considerable heterogeneity by gender and educational track. While females and individuals in vocational education may benefit from a diploma, male graduates and students holding a general education diploma may even be worse off on the labour market than dropouts. We show that sectoral heterogeneity acts as an underlying mechanism in the returns to a high school diploma.
Journal: Applied Economics
Pages: 2313-2325
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1543939
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1543939
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2313-2325




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Yaghoubi Farani
Author-X-Name-First: Ahmad
Author-X-Name-Last: Yaghoubi Farani
Author-Name: Saeid Karimi
Author-X-Name-First: Saeid
Author-X-Name-Last: Karimi
Author-Name: Nasim Izadi
Author-X-Name-First: Nasim
Author-X-Name-Last: Izadi
Author-Name: Pouria Ataei
Author-X-Name-First: Pouria
Author-X-Name-Last: Ataei
Title: Effect of virtual social networks on entrepreneurial behaviour of agriculture students in Iran
Abstract: 
 The main purpose of this research was to investigate those factors influencing the entrepreneurial behaviour of agriculture students who were members of entrepreneurship learning and training groups in virtual &#x200E;communication networks. In doing this, a conceptual model was developed to examine the effects of characteristics of entrepreneurship virtual social networks and the degree of participation in these networks through entrepreneurial thinking and decision on entrepreneurial behaviour. The study population of &#x200E;this descriptive-correlational research was made up of 180 members of virtual social groups exchanging knowledge of entrepreneurship in &#x200E;WhatsApp and Viber networks. A total of 126 usable questionnaires were collected. Results indicated that participation in virtual social networks &#x200E;had both direct and indirect effects &#x2013; through &#x200E;entrepreneurial thinking and decisions &#x2013; on entrepreneurial behaviour. &#x200E;However, characteristics of &#x200E;&#x200E;entrepreneurship &#x200E;virtual networks had only indirect effect on entrepreneurial &#x200E;behaviour &#x200E;via entrepreneurial thinking. The study highlights certain implications for policymakers, (potential) entrepreneurs, entrepreneurship support organizations, researchers and underlines the potential of virtual social networking for promoting entrepreneurship.
Journal: Applied Economics
Pages: 2326-2335
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1543940
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1543940
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2326-2335




Template-Type: ReDIF-Article 1.0
Author-Name: Ping Gao
Author-X-Name-First: Ping
Author-X-Name-Last: Gao
Author-Name: Junyi Shen
Author-X-Name-First: Junyi
Author-X-Name-Last: Shen
Title: An empirical analysis on the determinants of overweight and obesity in China
Abstract: 
 Overweight and obesity in adult populations is considered to be a growing epidemic worldwide, and appears to be rapidly increasing in China. From 1992 to 2002, the incidence of overweight in adults increased by 39.0%, while that of obesity doubled. To identify the determinants of adult overweight and obesity in China, micro-level data from a questionnaire survey entitled the ‘Preference Parameters Study,’ which was conducted by the Global Centers of Excellence programme at Osaka University, were analysed. In addition to the entire sample, data from urban and rural subsamples were also analysed in order to investigate whether the determinants of overweight and obesity differed. The results suggested that body mass index (BMI) is correlated with subjective well-being, gender, age, labour intensity and drinking and eating habits among urban respondents, and with age, monthly income, number of siblings and eating habits among rural respondents.
Journal: Applied Economics
Pages: 1923-1936
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229426
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229426
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1923-1936




Template-Type: ReDIF-Article 1.0
Author-Name: Yueming (Lucy) Qiu
Author-X-Name-First: Yueming (Lucy)
Author-X-Name-Last: Qiu
Author-Name: Xin Su
Author-X-Name-First: Xin
Author-X-Name-Last: Su
Author-Name: Yi David Wang
Author-X-Name-First: Yi David
Author-X-Name-Last: Wang
Title: Factors influencing commercial buildings to obtain green certificates
Abstract: 
 Identifying the key factors that influence commercial buildings’ decision to obtain voluntary green certificates is essential to building sustainability enhancement. Using commercial buildings in the state of New York, multinomial logit and nested logit models demonstrate that there is a significant correlation between the characteristics of commercial buildings (such as square footage, lot size, and years built) and green certification. More interestingly, if a commercial building is occupied by its owner, likelihood of green certification is actually smaller. This finding not only confirms that ongoing energy savings are heavily discounted when deciding whether to incur the upfront cost of green certification, but also suggests that the rental premium enjoyed by green buildings is likely greater in terms of present value than the expected operating cost savings. Another explanation could be that investor owners must operate in a competitive market for tenants while owner-occupiers do not operate in that competitive market, so they do not need to obtain green certificates to attract tenants. Consequently for policymakers, building owners that plan to rent out their commercial property space should be the early targets to promote green certification.
Journal: Applied Economics
Pages: 1937-1949
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229434
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229434
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1937-1949




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements
Author-X-Name-First: Kenneth
Author-X-Name-Last: Clements
Author-Name: Liang Li
Author-X-Name-First: Liang
Author-X-Name-Last: Li
Title: Understanding resource investments
Abstract: 
 The Millennium Boom of 2003–2011 made the resources industry highly profitable and led to a surge in new projects around the world. This had major implications for the Australian economy: Resource investment accounted for almost half of all business investment at the peak and the buoyancy of the sector helped Australia to avoid the worst of the global financial crisis. Using the event-study approach, this article examines the wealth-creating effects of new resource projects at the individual company level. The results indicate substantial increases in shareholder returns occur around the time of announcements of government approval for projects, the finalization of feasibility studies and changes in the status of projects such as when a company decides to finally commit to invest in a project. Government approval is the most important milestone in the life cycle of a project, where abnormal returns around 4% are realized on announcement day.
Journal: Applied Economics
Pages: 1950-1962
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229437
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229437
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1950-1962




Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Nan Wang
Author-X-Name-First: Chia-Nan
Author-X-Name-Last: Wang
Author-Name: Hsien-Pin Hsu
Author-X-Name-First: Hsien-Pin
Author-X-Name-Last: Hsu
Author-Name: Yen-Hui Wang
Author-X-Name-First: Yen-Hui
Author-X-Name-Last: Wang
Author-Name: Thi-Thu-Huyen Pham
Author-X-Name-First: Thi-Thu-Huyen
Author-X-Name-Last: Pham
Title: Performance assessment for electronic manufacturing service providers using two-stage super-efficiency SBM model
Abstract: 
 Manufacturing Service providers (EMSs) offer services to Original Equipment Manufacturers (OEMs). However, increasing challenges require an EMS to be more capable, adaptable and responsive. For survival, an EMS manager has to understand its relative efficiency in the industry. In addition, an investor also requires such information for investments. In this research, we propose a novel approach, which combines GM(1,1) with a two-stage super-efficiency slacks-based measure (SBM) model, to forecast and assess the efficiencies of 18 EMSs. The GM(1,1) was first used to forecast future data of EMSs, and then the two-stage super-efficiency SBM model was used to measure the marketability and profitability efficiencies for an EMU in two stages. The results build a ‘past-current-future’ view on the two efficiencies for each EMS. In addition, the profitability efficiency can help justify the reasonability of marketability efficiency. Our results showed that Hon Hai tops the rankings in both profitability and marketability efficiencies. These results also provided information about relative efficiencies of these EMSs, which helps EMS managers and investors to make better decisions.
Journal: Applied Economics
Pages: 1963-1980
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229446
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229446
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1963-1980




Template-Type: ReDIF-Article 1.0
Author-Name: Zied Ftiti
Author-X-Name-First: Zied
Author-X-Name-Last: Ftiti
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Waël Louhichi
Author-X-Name-First: Waël
Author-X-Name-Last: Louhichi
Title: Modelling the relationship between future energy intraday volatility and trading volume with wavelet
Abstract: 
 Although the energy and stock markets are both characterized by volatility and liquidity, and there has been substantial research to explore the relationship between volatility and trading volume (TV) in stock markets, few researchers have investigated this relationship in energy markets. Moreover, studies that have explored this association within energy markets did not describe its nature or impetus. To redress this oversight, we investigate this relationship using intraday data from the oil and gas markets – the most liquid energy markets in the world. In this way, the current article extends the previous studies through the use of a frequency approach to propose an original analysis of the relationship between volume and volatility. More specifically, we employ a continuous wavelet transform to identify the lead–lag phase between volatility and volume. This framework supplants usual time series modelling, as it uses a measure of coherence for different frequencies and time-scales to capture further changes and time variation in the volume–volatility relationship. Our results provide supportive evidence for the well-known positive relationship between realized volatility and TV, thereby supporting the mixture distribution hypothesis. In particular, our results show that volume causes volatility only during ‘turbulent times’, while volatility causes volume during ‘good times’. Furthermore, there is no relationship between volume and volatility in the long term, due to the absence of noise traders and liquidity traders in the long run. These findings are helpful for investors and policymakers as they contribute to better forecast the TV and price volatility during turbulent and calm periods and over several investment horizons.
Journal: Applied Economics
Pages: 1981-1993
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229453
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229453
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1981-1993




Template-Type: ReDIF-Article 1.0
Author-Name: Youxing Huang
Author-X-Name-First: Youxing
Author-X-Name-Last: Huang
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Title: Wage, foreign-owned firms, and productivity spillovers via labour turnover: a non-linear analysis based on Chinese firm-level data
Abstract: 
 Using firm-level panel data from Chinese manufacturing firms over the period 2004–2007, this article investigates the impact of the wage gap between local and foreign-owned firms on foreign direct investment (FDI) spillovers in terms of total factor productivity (TFP). We find a non-linear threshold effect that: a low-level wage gap threshold exists, below which FDI spillovers are significantly negative. This is because FDI spillovers via labour turnover are blocked due to the low wages of local firms, which jeopardizes the flow of skilled workers from foreign firms to local firms. In contrast, when the wage gap reaches a high-level threshold, local firms can get benefits from FDI spillovers. The reason is that high wages of local firms attract skilled employees to leave foreign firms, which yields a large magnitude of worker mobility from foreign firms to local firms. Our article provides evidence that labour turnover as the channel of FDI spillovers only works when the wage gap is beyond some threshold. Also, these thresholds vary across regions and firm ownerships.
Journal: Applied Economics
Pages: 1994-2010
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1231899
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231899
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1994-2010




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Y. Mathä
Author-X-Name-First: Thomas Y.
Author-X-Name-Last: Mathä
Author-Name: Alessandro Porpiglia
Author-X-Name-First: Alessandro
Author-X-Name-Last: Porpiglia
Author-Name: Michael Ziegelmeyer
Author-X-Name-First: Michael
Author-X-Name-Last: Ziegelmeyer
Title: Cross-border commuting and consuming: an empirical investigation
Abstract: 
 This article contributes to our understanding of cross-border activity in general and the determinants of cross-border trade in particular by focusing on the part of cross-border sales that arise due to work-related cross-border crossings of households. We analyse empirically how cross-border consumption expenditures vary across product and services categories as well as household characteristics using representative household survey data of cross-border commuters to Luxembourg. In total, these households spend an estimated 17% of their gross annual income across the border, contributing about 10% to the total household final consumption expenditure (HFCE) in Luxembourg. Cross-border expenditure is linked to individual- and household-related characteristics and to distance between home and work. Cross-border commuters systematically exploit arbitrage opportunities that arise because of existing price level (index) differences between the country of work and the country of residence.
Journal: Applied Economics
Pages: 2011-2026
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1231902
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231902
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:2011-2026




Template-Type: ReDIF-Article 1.0
Author-Name: Laura López-Torres
Author-X-Name-First: Laura
Author-X-Name-Last: López-Torres
Author-Name: Diego Prior
Author-X-Name-First: Diego
Author-X-Name-Last: Prior
Author-Name: Daniel Santín
Author-X-Name-First: Daniel
Author-X-Name-Last: Santín
Title: Assessing the effect of educational programs on public schools’ performance
Abstract: 
 This paper provides evidence on the effectiveness in the implementation of an educational program which offered public schools in Catalonia (Spain) the opportunity to improve the quality of educational provision. We employ a difference-in-differences approach on rich balanced panel data of public schools. The results confirm that the program did effectively improve students’ achievement and reduce absenteeism, albeit not for all modules and school types or across all years. Our results highlight that it is important to condition the delivery of resources upon specific academic goals depending on the characteristics of the treated population. Additionally, program results suggest the need to enhance educational program design in order to get better evaluation feedback.Abbreviations: DoE: Department of Education; EU: European Union; PMQCE: Projecte per a la Millora de la Qualitat dels Centres Educatius; DiD: Differences-in-Differences; SFDC: Schools Facing Disadvantaged Conditions; OECD: Organization for Economic Co-operation and Development; REA: Regional Educational Authority
Journal: Applied Economics
Pages: 5205-5226
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610712
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610712
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5205-5226




Template-Type: ReDIF-Article 1.0
Author-Name: Steve Briand
Author-X-Name-First: Steve
Author-X-Name-Last: Briand
Title: Time inconsistency and delayed retirement decision: the French pension bonus
Abstract: 
 With the increase in life expectancy and demographic shocks, several public policies in the last decades aim to encourage individuals to postpone retirement. One of them, the pension bonus, gives an increased pension if individuals retire beyond their Full Retirement Age. Previous ex post analyses found that the responsiveness to this type of financial incentives, which encourage to postpone retirement, is heterogeneous among agents and that the global effect is rather limited. Deriving from previous research in Behavioural Economics, this article analyses the impact of time inconsistency in the decision to delay retirement to get the bonus. Using public national survey data, short-term and long-term impatience are measured with questions on retiring motivations. After controlling for the endogeneity of the bonus knowledge, econometric results show that time-inconsistent agents are less likely to retire with the bonus.
Journal: Applied Economics
Pages: 5227-5242
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610718
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610718
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5227-5242




Template-Type: ReDIF-Article 1.0
Author-Name: Benjiang Ma
Author-X-Name-First: Benjiang
Author-X-Name-Last: Ma
Author-Name: Zhongmin Zhou
Author-X-Name-First: Zhongmin
Author-X-Name-Last: Zhou
Author-Name: Xiaohong Chen
Author-X-Name-First: Xiaohong
Author-X-Name-Last: Chen
Title: Financing difficulties for SMEs and credit rationing – an expanded model of mortgage loans with asymmetric information
Abstract: 
 This article presents a new model of mortgage loans under reasonable assumptions. A several key variables that affects the success of a project, such as project risk, total investment, lending rate,mortgage, and self-financing are jointly considered in the model. The model takes the participation constraints and the incentive compatibility constraints into account for enterprises and banks on project investment actions respectively. Our model can explain the coexistence scenario of small medium enterprises’ (SMEs) financing difficulties and credit rationing in credit markets with asymmetric information. It reveals that higher enterprise self-financing for the project is a “credible factor” to the bank. Banks put forward strict requirements on mortgage for the SMEs with low proportion of project self-financing, which will lead to two scenarios:one is that some SMEs would not get loans due to insufficient mortgage assets; other is that some SMEs will voluntarily give up loans because of loan requirements, even if they have enough mortgage assets. Rationing is implemented both to large enterprises and SMEs, but the degree of rationing is gradually strengthened with the reduction of self-financing scale for the project.
Journal: Applied Economics
Pages: 5243-5257
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610721
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610721
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5243-5257




Template-Type: ReDIF-Article 1.0
Author-Name: Vinh Huy Nguyen
Author-X-Name-First: Vinh Huy
Author-X-Name-Last: Nguyen
Author-Name: Richard Holowczak
Author-X-Name-First: Richard
Author-X-Name-Last: Holowczak
Author-Name: Suchismita Mishra
Author-X-Name-First: Suchismita
Author-X-Name-Last: Mishra
Title: Intermarket sweep order trade size clustering around corporate announcements
Abstract: 
 Investors have different trade size preferences depending on their information advantage. Using intermarket sweep orders (ISOs), we find that investors appear to prefer using small, round lot trades around corporate events with higher announcement frequency and more predictable timing, such as earnings announcements. Around these corporate events, information is revealed, and analyst estimates are confirmed or rejected. Conversely, share repurchase announcements happen less frequently and the timing of these announcements are unpredictable. Relative to earnings announcements, share repurchase announcements create more uncertainty than they resolve. We find that when investors have less information, they tend to use costlier, larger trade size multiples. We further support the extant finding that trade sizes are smaller with the advent of high-frequency trading.
Journal: Applied Economics
Pages: 5258-5267
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1612029
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1612029
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5258-5267




Template-Type: ReDIF-Article 1.0
Author-Name: Kurmaş Akdoğan
Author-X-Name-First: Kurmaş
Author-X-Name-Last: Akdoğan
Title: Size and sign asymmetries in house price adjustments
Abstract: 
 Long-run mean-reversion in real house prices is determined by the relative strength of fundamental factors against the short-run influences. This article suggests that the adjustment towards the long-run trend in house prices could display non-linear behaviour due to some intrinsic characteristics of the housing market. Accordingly, sign and size asymmetries as well as possible structural breaks are taken into account in a unit root testing exercise for twenty-nine countries. Our results suggest that mean-reversion exists for seventy percent of the countries in our sample. Moreover, the out-of-sample forecasting performance of our non-linear models in predicting house prices is better than a simple auto-regressive benchmark for some countries.
Journal: Applied Economics
Pages: 5268-5281
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1612030
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1612030
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5268-5281




Template-Type: ReDIF-Article 1.0
Author-Name: Alfred A. Haug
Author-X-Name-First: Alfred A.
Author-X-Name-Last: Haug
Author-Name: Syed Abul Basher
Author-X-Name-First: Syed Abul
Author-X-Name-Last: Basher
Title: Exchange rates of oil exporting countries and global oil price shocks: a nonlinear smooth-transition approach
Abstract: 
 This paper models logistic and exponential smooth transition adjustments of real exchange rates for six major oil-exporting countries in response to different shocks affecting oil prices. The logistic form captures asymmetric and the exponential form symmetric adjustments in regards to positive and negative oil price shocks. We chose oil-exporting countries that do not peg their exchange rates. For most countries, we detect no statistically significant non-linearities for the adjustment process of real exchange rate returns, be they asymmetric or symmetric, in response to oil supply shocks, idiosyncratic oil-market-specific shocks, and speculative oil-market shocks. Exceptions are oil supply shocks in the UK and possibly Brazil, where exchange rates respond nonlinearly, though the effects are symmetric for both countries. On the other hand, global aggregate demand shocks, which are shocks not originating directly in the oil market, have nonlinear asymmetric effects on real exchange rate returns for Canada, Mexico, Norway and Russia, and nonlinear symmetric effects for Brazil and the UK.
Journal: Applied Economics
Pages: 5282-5296
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1612031
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1612031
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5282-5296




Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Alamá-Sabater
Author-X-Name-First: Luisa
Author-X-Name-Last: Alamá-Sabater
Author-Name: Manuel Cantavella
Author-X-Name-First: Manuel
Author-X-Name-Last: Cantavella
Title: Spatial income and public capital: a case of a Spanish region
Abstract: 
 The objective of this paper is to analyse major determinants of disposable per capita income at a local municipality level for a territory of Spain: the Valencian region. A cross-sectional spatial study for an averaged period (2010–2013) will allow us to control for intraregional correlation, paying special attention to the role of real public investment and its possible effects on disposable personal income. A reference framework for economic and social policymakers will be provided by the specification of the model.
Journal: Applied Economics
Pages: 5297-5309
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613500
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613500
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5297-5309




Template-Type: ReDIF-Article 1.0
Author-Name: Jiong Gong
Author-X-Name-First: Jiong
Author-X-Name-Last: Gong
Author-Name: Ping Jiang
Author-X-Name-First: Ping
Author-X-Name-Last: Jiang
Author-Name: Shu Tian
Author-X-Name-First: Shu
Author-X-Name-Last: Tian
Title: Fund flows and performance: understanding distribution channel
Abstract: 
 This paper investigates the relevance and working mechanisms of fund distribution channels to subsequent fund inflows. Using a comprehensive dataset in China from 2004 to 2010, we find that more brokerage distribution but less commercial bank distribution significantly increases subsequent fund inflows. Further evidence indicates that the flow effect of fund distribution channels is more consistent with the limited attention hypothesis rather than the signal hypothesis. In particular, more brokerage distribution increases fund holdings by less sophisticated individual investors. Moreover, distribution channels affect the flow-performance relationship. Finally, the flow effect of fund distributional channels is sensitive to changes in regulations of fund distribution practices.
Journal: Applied Economics
Pages: 2885-2900
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1563669
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1563669
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2885-2900




Template-Type: ReDIF-Article 1.0
Author-Name: Jiayi Balasuriya
Author-X-Name-First: Jiayi
Author-X-Name-Last: Balasuriya
Author-Name: Yu Yang
Author-X-Name-First: Yu
Author-X-Name-Last: Yang
Title: The role of personality traits in pension decisions: findings and policy recommendations
Abstract: 
 Many countries need to stimulate pension participation and contribution to ensure their citizens are prepared adequately for retirement. Identifying at-risk groups with tendencies of not joining pension plans will help governments target strategies to improve pension awareness and participation. This study investigates the role of personality traits in pension decision making using data from the UK Household Longitudinal Study. Our results demonstrate that Extraversion significantly correlates with non-participation in private pensions, including both employer run and personal pensions. Individuals who are high in Conscientiousness are more likely to participate and pay more into personal pensions. Openness to experience is negatively correlated with saving via personal pensions. Agreeableness and Extraversion correlate inversely with the amount contributed to personal plans. This paper discusses our findings in detail and offers policy implications which may help promote pension participation and ease the problem of old age poverty.
Journal: Applied Economics
Pages: 2901-2920
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1563670
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1563670
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2901-2920




Template-Type: ReDIF-Article 1.0
Author-Name: Florin Medeleanu
Author-X-Name-First: Florin
Author-X-Name-Last: Medeleanu
Author-Name: Ciprian Răcuciu
Author-X-Name-First: Ciprian
Author-X-Name-Last: Răcuciu
Author-Name: Madlena Nen
Author-X-Name-First: Madlena
Author-X-Name-Last: Nen
Author-Name: Zieduna Liepe
Author-X-Name-First: Zieduna
Author-X-Name-Last: Liepe
Author-Name: Narcis Florentin Antonie
Author-X-Name-First: Narcis Florentin
Author-X-Name-Last: Antonie
Title: Fair e-lottery system proposal based on anonymous signatures
Abstract: 
 The games in which large amount of money is involved are always called into question about the existence of the possibility to manipulate the game for an immediate benefit. Lottery system is not an exception in this regard; moreover, it is a subject of rumours that the game is not as fair as it is pretended to be. After studying the advantages and drawbacks of conventional lottery systems, the authors are proposing an e-lottery system based on anonymous signatures. Even though the proposal is using electronic signatures, which imply complex calculus and the possession of digital certificates for each player, the proposed system compensates these drawbacks by increasing trust and confidence of both the players and the lottery organizer. This will lead to more players participating in the lottery, which translates to more revenue for the lottery and larger prizes for the players.
Journal: Applied Economics
Pages: 2921-2933
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1563671
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1563671
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2921-2933




Template-Type: ReDIF-Article 1.0
Author-Name: Gregory M. Foggitt
Author-X-Name-First: Gregory M.
Author-X-Name-Last: Foggitt
Author-Name: André Heymans
Author-X-Name-First: André
Author-X-Name-Last: Heymans
Author-Name: Gary Van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: Van Vuuren
Title: Measuring the systemic risk transfer from the United States to the South African financial sector
Abstract: 
 The sub-prime crisis in 2008 illustrated how systemic risk in the financial sector of one country could spread to the financial sectors in other countries, and subsequently result in a global financial crisis. This direct transfer of systemic risk was made possible by phenomena such as contagion and common shocks. The way in which these elements of interconnectedness can magnify seemingly small levels of systemic risk, and subsequently transfer between financial sectors illustrate the necessity for a more in-depth analysis. This measurement is done using three approaches. A dynamic conditional correlation (DCC) model is used to investigate contagion. To analyse the volatility spillover effect from the US to SA, an exponential generalized autoregressive conditional heteroskedastic (EGARCH) model is employed. Finally, a new contribution is made where a marginal expected shortfall (MES) model is used to set the FTSE/JSE All-Share Index (ALSI) as a hypothetical bank in the financial sector of the S&P 500. All approaches show weak evidence for a direct systemic risk transfer and therefore indicate that any systemic risk transfer is more likely to take an indirect form through changes in capital flows or interest rates.
Journal: Applied Economics
Pages: 2934-2944
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564014
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564014
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2934-2944




Template-Type: ReDIF-Article 1.0
Author-Name: Julia Meyer
Author-X-Name-First: Julia
Author-X-Name-Last: Meyer
Title: Outreach and performance of microfinance institutions: the importance of portfolio yield
Abstract: 
 In this paper, we examine the interaction between social outreach and financial return in microfinance. Running multivariate regression models and using 1,805 observations of microfinance institutions between 2004 and 2013, we find strong evidence suggesting that institutions with more social engagement – in terms of outreach to the poor – earn higher portfolio yields. We also find that measures of outreach are associated with increased operating expenses. As return figures are influenced by both costs and yield, and because both increase to a similar degree with the depth of outreach, these two effects lead to a zero sum result on return measures. This finding could explain why existing studies assessing the interaction between social outreach and different measures of financial performance in microfinance (such as return on assets/equity, operating expenses, operational self-sufficiency) have not produced consistent results.
Journal: Applied Economics
Pages: 2945-2962
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564016
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564016
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2945-2962




Template-Type: ReDIF-Article 1.0
Author-Name: Ning Jia
Author-X-Name-First: Ning
Author-X-Name-Last: Jia
Title: Heterogeneous effects of merit scholarships: do program features matter?
Abstract: 
 This paper examines the role of program features in determining the effectiveness of merit scholarships on educational outcomes using data from the 2009 to 2014 American Community Survey. Exploiting the variation in the timing of program adoption as well as program features across states, I find that leniency of academic requirements for initial eligibility largely contributes to program effects on associate’s degree completion, whereas generosity of scholarship amount significantly increases college attendance and bachelor’s degree completion. The estimates also indicate that lower requirements for scholarship renewal appear to positively affect the likelihood of completing a degree in science, technology, engineering, and mathematics fields (STEM). The findings suggest that leniency and generosity are important determinants of program effectiveness on educational outcomes. It is thus relevant to take program features into account when designing merit scholarships.
Journal: Applied Economics
Pages: 2963-2979
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564017
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564017
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2963-2979




Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Krause
Author-X-Name-First: Melanie
Author-X-Name-Last: Krause
Author-Name: Stefan Szymanski
Author-X-Name-First: Stefan
Author-X-Name-Last: Szymanski
Title: Convergence versus the middle-income trap: the case of global soccer
Abstract: 
 Unconditional convergence across countries worldwide is typically rejected in terms of GDP per capita. But when focusing on a specific internationally competitive industry, such as manufacturing, rather than the overall economy, unconditional convergence has been found to hold. As the epitome of competition and globalization, this paper uses the performance of national soccer teams as a further test case. We rely on data of more than 25,000 games between 1950 and 2014 and find clear evidence of unconditional $$\beta $$β
- and $$\sigma $$σ
-convergence in national team performance, as measured either by win percentages or goal difference. We argue that transfer of technologies, skills and best practices fosters this catch-up process. But there are limits: we show that good teams from Africa and Asia are failing to close the gap with top European or South American teams for reasons that are analogous to the 'middle income trap'. Lessons for other sectors include the virtues of internationally transferable human capital as well as the mixed blessings of regional integration for worldwide convergence.
Journal: Applied Economics
Pages: 2980-2999
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564018
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564018
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2980-2999




Template-Type: ReDIF-Article 1.0
Author-Name: Clinton L. Neill
Author-X-Name-First: Clinton L.
Author-X-Name-Last: Neill
Author-Name: Rodney B. Holcomb
Author-X-Name-First: Rodney B.
Author-X-Name-Last: Holcomb
Author-Name: B. Wade Brorsen
Author-X-Name-First: B. Wade
Author-X-Name-Last: Brorsen
Title: Current market conditions for veterinary services in the U.S
Abstract: 
 The veterinary industry has been plagued by low growth in income, yet flourished in growth of new veterinarians. By using a labour-/work-hour approach that allows for proper matching of the data, we develop a supply and demand model of companion animal services in the veterinary medicine profession. We use data from two unique sources that allow demand estimation by companion animal type and lets supply vary by practice type. The results here suggest that low income growth, relative to doctors and dentists, may be from allowing supply to outpace demand for veterinary services.
Journal: Applied Economics
Pages: 6501-6511
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489518
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489518
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6501-6511




Template-Type: ReDIF-Article 1.0
Author-Name: Tolina Fufa
Author-X-Name-First: Tolina
Author-X-Name-Last: Fufa
Author-Name: Jaebeom Kim
Author-X-Name-First: Jaebeom
Author-X-Name-Last: Kim
Title: Financial development, economic growth and convergence clubs
Abstract: 
 To study the role of financial development in economic growth, we apply an array of convergence tests designed to capture nonlinear transitional dynamics to real outputs per capita. Strong evidence of multiple convergence clubs is observed, implying that the clubs are formed based on the initial level of real output per capita and average growth rate. Our empirical results show that the stage of economic growth of each country plays an important role for the composition of the convergence clubs. Furthermore, financial development emerges to be a significant determinant, albeit plays differently in the economic growth of each convergence club.
Journal: Applied Economics
Pages: 6512-6528
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489521
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489521
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6512-6528




Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Mehmet Umutlu
Author-X-Name-First: Mehmet
Author-X-Name-Last: Umutlu
Title: Strategies can be expensive too! The value spread and asset allocation in global equity markets
Abstract: 
 Is the value spread useful for forecasting returns on quantitative equity strategies for country selection? To test this, we examine a sample of 120 country-level equity strategies replicated within 72 stock markets for the years 1996–2017. The value spread is a powerful and robust predictor of strategy returns in the cross-section, subsuming other methods based on momentum, reversal, or seasonality. Going long (short) the strategies with the broadest (narrowest) value spread produces significant four-factor model alphas, markedly outperforming an equal-weighted benchmark of all of the strategies. The results are robust to many considerations.
Journal: Applied Economics
Pages: 6529-6546
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489523
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489523
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6529-6546




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Baptiste Combes
Author-X-Name-First: Jean-Baptiste
Author-X-Name-Last: Combes
Author-Name: Robert Francis Elliott
Author-X-Name-First: Robert Francis
Author-X-Name-Last: Elliott
Author-Name: Diane Skåtun
Author-X-Name-First: Diane
Author-X-Name-Last: Skåtun
Title: Hospital staff shortage: the role of the competitiveness of pay of different groups of nursing staff on staff shortage
Abstract: 
 Shortages of nursing staff in OECD countries have been a preoccupation for policy makers. Shortages of staff may be the consequence of uncompetitive pay. In the private sector, employers in different regions can offer different pay rates to reflect local amenities and cost of living. Hospitals in the UK however cannot set the pay for their employees, and as a result they might therefore incur staff shortages. Moreover, occupational groups do not operate in isolation. Shortages of staff may also be the consequence of the competitiveness of pay of an alternative group of staff. This is investigated using two distinct groups of nursing staff: assistant nurses (ANs) and registered nurses (RNs) working in English hospitals in 2003–2005 using national-level data sets. We find that an increase by 10% of the pay competitiveness of RNs decreases the shortage of both the RNs and of ANs by 0.6% and 0.4%, respectively.
Journal: Applied Economics
Pages: 6547-6552
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1490000
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490000
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6547-6552




Template-Type: ReDIF-Article 1.0
Author-Name: Hiroaki Suenaga
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Suenaga
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Title: Understanding the equilibrium dynamics of European broadband diffusion
Abstract: 
 This study examines the equilibrium dynamics of European broadband markets within a simultaneous demand and supply model. Unlike alternative reduced-form approaches, our model explicitly incorporates key features of the demand for network services: a bell-shaped distribution of heterogeneous consumers and presence of network effects. Our empirical analysis of European countries reveals that although the demand for broadband services exhibits strong network effects they are not ‘strong enough’ to archive critical mass in these markets. Furthermore, the systems equilibrium dynamics show that even though the technology is introduced at very high prices initially, the expansion of suppliers’ infrastructure investment reduces the equilibrium prices rapidly in the first few years. This price reduction, combined with strong network effects, stimulates expansion of the subscription base until consumers at the peak of the distribution enter the market. Convergence to the steady state happens at around 8 years for service price and 15 years for subscription. Comparative static analysis illustrates that steady state equilibrium subscription relates positively to national population density, inter-platform concentration, and the share of unbundled local loop, while the equilibrium price relates inversely to these factors. Other supply and demand factors (viz. intra-platform concentration, income and education) have minimal impact on the steady state equilibrium.
Journal: Applied Economics
Pages: 6553-6568
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1490002
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490002
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6553-6568




Template-Type: ReDIF-Article 1.0
Author-Name: John Dagpunar
Author-X-Name-First: John
Author-X-Name-Last: Dagpunar
Title: A critique of the paper by Kanabar, R. and Simmons, P. (2016), ‘To defer or not to defer? UK state pension and work decisions in a lifecycle model’, Applied Economics, 48, 58, 5699-5716
Abstract: 
 We suggest corrections to the paper by Kanabar and Simmons and provide analyses for deriving the internal rate of return arising from a UK state pension deferral decision and for an actuarially fair deferral scheme.
Journal: Applied Economics
Pages: 6569-6575
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1490003
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490003
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6569-6575




Template-Type: ReDIF-Article 1.0
Author-Name: Edmond Baranes
Author-X-Name-First: Edmond
Author-X-Name-Last: Baranes
Author-Name: Scott J. Savage
Author-X-Name-First: Scott J.
Author-X-Name-Last: Savage
Title: Access prices, unbundling and product variety in European Internet markets
Abstract: 
 A fundamental policy in European broadband regulation is unbundled access to the local loop of the incumbent telephone company. We present comparative static results that show as the access price decreases, the retail price decreases, the variety of plans offered by Internet service providers increases and the quantity of each variety increases when a threshold condition is met. Using data from 18 European countries from 2006 to 2012, we find empirical support for these results when Internet product variety is measured by variation in download speeds.
Journal: Applied Economics
Pages: 6576-6587
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1493187
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1493187
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6576-6587




Template-Type: ReDIF-Article 1.0
Author-Name: Yoshito Funashima
Author-X-Name-First: Yoshito
Author-X-Name-Last: Funashima
Title: Wagner’s law versus displacement effect
Abstract: 
 The public sector has grown dramatically over the past few centuries in many developed countries. In this article, we use wavelet methods to distinguish between two leading explanations for this growth – Wagner’s law and the displacement effect. In doing so, we use the long-term data of 10 OECD countries for a maximum time span of 1800–2009. We find that the validity of Wagner’s law is likely to vary strongly over time for each country. A roughly similar feature in most of the countries is that the law is less valid in the earliest stage of economic development as well as in the advanced stages, with the validity tending to follow an inverted U-shaped pattern with economic development. Further, our results indicate that the long-run growth of government size cannot be adequately explained by Wagner’s law. On the other hand, the displacement effect appears to account for the bulk of the growth in most of the countries.
Journal: Applied Economics
Pages: 619-634
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203063
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203063
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:619-634




Template-Type: ReDIF-Article 1.0
Author-Name: Md. Samsul Alam
Author-X-Name-First: Md. Samsul
Author-X-Name-Last: Alam
Author-Name: Sudharshan Reddy Paramati
Author-X-Name-First: Sudharshan Reddy
Author-X-Name-Last: Paramati
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Title: Natural gas, trade and sustainable growth: empirical evidence from the top gas consumers of the developing world
Abstract: 
 Natural gas is the key non-renewable source of energy for a low-carbon economy. The research applies heterogeneous panel techniques to investigate the impact of natural gas consumption on economic growth across a panel of top 15 natural gas consumers of the developing world. We establish long-run dynamics with cross-sectional dependence and heterogeneity across the sample countries. The long-run output elasticities suggest that the natural gas consumption and trade variables have significant positive effect on the output in a panel of developing economies. Further, we establish feedback relationship among gas consumption, output and trade in the short-run. Given the significance of natural gas as the low-emission source of energy, we suggest governments and policy advisers of these major natural gas consumers to focus on developing pipeline infrastructure for adequate supply, reforming natural gas sector with a competitive price structure to combat excess demand in individual natural gas market. With trade integration, majority of these countries need to incorporate these initiatives to improve the technologies such as combined cycle power plant technology and value-added chemical production technology to achieve sustainable economic growth.
Journal: Applied Economics
Pages: 635-649
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203064
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203064
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:635-649




Template-Type: ReDIF-Article 1.0
Author-Name: Kannika Duangnate
Author-X-Name-First: Kannika
Author-X-Name-Last: Duangnate
Author-Name: James W. Mjelde
Author-X-Name-First: James W.
Author-X-Name-Last: Mjelde
Title: Effects of the structural change on transaction costs between North America natural gas spot markets
Abstract: 
 Threshold cointegration between market pairs before and after the potential structural break associated with the shale gas revolution is examined. Pairwise transaction costs differ between the pre- and post-break periods. During the post-break period, five of seven pairwise transaction costs decrease, while the remaining two pair-wise transaction costs increase relative to the pre-break period. Alterations in natural gas flows as the result of the shale gas revolution partially explain the changes in transaction costs.
Journal: Applied Economics
Pages: 650-663
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203065
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203065
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:650-663




Template-Type: ReDIF-Article 1.0
Author-Name: Rama Malladi
Author-X-Name-First: Rama
Author-X-Name-Last: Malladi
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Title: Skillful hiding: evaluating hedge fund managers’ performance based on what they hide
Abstract: 
 Mandatory disclosure of hedge fund portfolios has been a hotly debated topic. This article studies asset returns of ‘confidential holdings’ (confidentiality treatment [CT]) or those assets that were not voluntarily disclosed by US-based hedge funds in their original 13F filings to the Securities and Exchange Commission. After analysing returns from 1999 to 2013, we find that in aggregate, the CT position size, ownership share and returns are statistically different to non-CT positions. We provide a mechanism for regulators and investors to rank fund managers based on what they hide in positions.
Journal: Applied Economics
Pages: 664-676
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203066
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203066
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:664-676




Template-Type: ReDIF-Article 1.0
Author-Name: David E Allen
Author-X-Name-First: David E
Author-X-Name-Last: Allen
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Author-Name: Abhay K Singh
Author-X-Name-First: Abhay K
Author-X-Name-Last: Singh
Title: An entropy-based analysis of the relationship between the DOW JONES Index and the TRNA Sentiment series
Abstract: 
 This article features an analysis of the relationship between the DOW JONES Industrial Average (DJIA) Index and a sentiment news series using daily data obtained from the Thomson Reuters News Analytics (TRNA) provided by SIRCA (The Securities Industry Research Centre of the Asia Pacific). The recent growth in the availability of on-line financial news sources, such as internet news and social media sources provides instantaneous access to financial news. Various commercial agencies have started developing their own filtered financial news feeds which are used by investors and traders to support their algorithmic trading strategies. TRNA is one such data set. In this study, we use the TRNA data set to construct a series of daily sentiment scores for DJIA stock index component companies. We use these daily DJIA market sentiment scores to study the relationship between financial news sentiment scores and the stock prices of these companies using entropy measures. The entropy and mutual information (MI) statistics permit an analysis of the amount of information within the sentiment series, its relationship to the DJIA and an indication of how the relationship changes over time.
Journal: Applied Economics
Pages: 677-692
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203067
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203067
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:677-692




Template-Type: ReDIF-Article 1.0
Author-Name: Ye Xue
Author-X-Name-First: Ye
Author-X-Name-Last: Xue
Author-Name: Yiting Huang
Author-X-Name-First: Yiting
Author-X-Name-Last: Huang
Title: Study on the price co-movement among the Asia Pacific, European and Chinese coal markets – based on the empirical analysis of MS-VEC model
Abstract: 
 In this article, based on weekly data of the three major coal markets (the Asia Pacific, Europe and China) from March 2008 to November 2014, an empirical research on their mutual influence and price co-movement effect among the three major coal markets is conducted by using the Co-integration Theory, Granger Causality Test and markov switching-Vector Error Correction (MS-VEC) model. The conclusions are as follows. (1) There exists a long-term cointegration relationship and bidirectional causality relationship between coal prices at home and abroad, and the influences of foreign coal markets on the domestic coal markets are stronger than the influences of domestic coal markets on foreign coal markets, and thus the interaction between the two markets leads to asymmetric linkage effects. (2) Compared with the VEC model, the MS-VEC model can reflect the nonlinear feature of price co-movement effects. (3) There exists an inherent adjustment mechanism between domestic and foreign coal markets, i.e. the coal prices will be self-revised continuously until a long-term equilibrium state is achieved when a deviation from the equilibrium state occurs. (4) There exists a co-movement effect which varies with the change of regime among the three coal prices, and the self-maintenance is strong and the status transfer phenomenon is clear in different regimes.
Journal: Applied Economics
Pages: 693-701
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205720
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205720
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:693-701




Template-Type: ReDIF-Article 1.0
Author-Name: Anping Chen
Author-X-Name-First: Anping
Author-X-Name-Last: Chen
Author-Name: Nicolaas Groenewold
Author-X-Name-First: Nicolaas
Author-X-Name-Last: Groenewold
Title: An increase in the retirement age in China: the regional economic effects
Abstract: 
 China’s pension system is in need of comprehensive reform. One measure on which we focus is to increase the retirement age. It is likely that a change in retirement age will have significantly different effects across China’s regions. Interregional disparities are already very substantial in China and it will be important to know how changes in pension arrangements will affect disparities. We consider four policies to increase the retirement age from 60 to 61. They differ according the use made of the extra revenue generated by the policy. All four policies increase welfare and reduce the interregional welfare gap.
Journal: Applied Economics
Pages: 702-721
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205721
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205721
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:702-721




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: ebi-ebi
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1213580
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213580
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:ebi-ebi




Template-Type: ReDIF-Article 1.0
Author-Name: Yimin Xu
Author-X-Name-First: Yimin
Author-X-Name-Last: Xu
Author-Name: Jakob de Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: de Haan
Title: The time-varying relationship between credit spreads and employment growth
Abstract: 
 After the global financial crisis, several central banks introduced unconventional monetary policies, such as quantitative easing (QE). If QE increases asset prices, but does not boost the real economy to the same extent, the relationship between credit spreads and employment growth will weaken. This study investigates this issue for the U.S. in a moving-windows framework. Our results suggest that the link between credit spreads and employment growth is lower during bubbles and recessions. We also find that the relationship weakened after the Fed introduced QE.
Journal: Applied Economics
Pages: 4387-4401
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1450483
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450483
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4387-4401




Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Shen
Author-X-Name-First: Xuan
Author-X-Name-Last: Shen
Author-Name: Valentina Hartarska
Author-X-Name-First: Valentina
Author-X-Name-Last: Hartarska
Title: Winners and losers from financial derivatives use: evidence from community banks
Abstract: 
 This article provides empirical evidence on how profitability of small community banks was affected by derivatives use before and after the 2008 crisis. We use an endogenous switching regressions model to estimate the sensitivity of bank profitability to risks and control for the endogenous choice to use or not to use derivatives. We then compute counterfactual effects and show how profitability would have looked without derivatives use for banks that used derivatives and how it would have looked with derivatives for banks that did not use derivatives. The results show that derivatives helped reduce the sensitivity of profitability to credit risks and improved profitability for most specialists. However, for the largest number of banks which are non-user non-specialists, devivates use would have resulted in lower return on assets had they used derivatives post 2008. Therefore, our evidence suggests that implementation of the Volcker Rule, imposing high compliance costs on community banks and, thus, discouraging hedging, may have a negative impact on profits of specialists banks but, overall, a neutral effect on profits in the community banks industry as a whole.
Journal: Applied Economics
Pages: 4402-4417
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1450484
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450484
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4402-4417




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Title: Directional time-varying partial correlation with the Gaussian copula–DCC–GARCH model
Abstract: 
 This article suggests a directional time-varying partial correlation based on the dynamic conditional correlation (DCC) method. A recent study proposed the copula DCC based on the vine structure. Due to the arbitrary variable selection, their method can produce unnecessary dependence in the multivariate structure, with extra economic and computational burdens. To overcome this limitation, we incorporate directional dependence by copula to track the causal relationship among multiple variables and then extend the copula bivariate DCC method to a directional time varying partial correlation in the multivariate structure. Our proposed method provides a reasonable and efficient conditional dependence structure, without the trial and error process. We offer an application of our method to the U.S. stock market as an illustrated example.
Journal: Applied Economics
Pages: 4418-4426
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1450485
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450485
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4418-4426




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoqing (Maggie) Fu
Author-X-Name-First: Xiaoqing (Maggie)
Author-X-Name-Last: Fu
Author-Name: Yongjia (Rebecca) Lin
Author-X-Name-First: Yongjia (Rebecca)
Author-X-Name-Last: Lin
Author-Name: Philip Molyneux
Author-X-Name-First: Philip
Author-X-Name-Last: Molyneux
Title: The quality and quantity of bank intermediation and economic growth: evidence from Asia Pacific
Abstract: 
 We investigate the impact of the quantity and quality of bank intermediation on economic growth across 14 Asia-Pacific economies over 2003–2015. Measures of bank shareholder value efficiency as well as profit and cost efficiency are used as indicators of intermediation quality. We also employ measures of liquidity creation (fat and nonfat) as a proxy for the quantity of bank intermediation. Our main finding is that the quality of bank intermediation (enhanced credit allocation) is a driver of economic growth in developed Asia-Pacific economies, whereas it is the quantity of bank intermediation (capital accumulation) that positively influences growth in developing nations. From a policy perspective, our findings suggest that policymakers in developed nations should concentrate their efforts on reforms that enhance bank efficiency. Second, reforms that stimulate capital accumulation should be encouraged in developing economies because this is the main channel that spurs economic growth.
Journal: Applied Economics
Pages: 4427-4446
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1450486
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450486
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4427-4446




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: 4488-4488
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1452419
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1452419
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4488-4488




Template-Type: ReDIF-Article 1.0
Author-Name: Nola Agha
Author-X-Name-First: Nola
Author-X-Name-Last: Agha
Author-Name: Thomas Rhoads
Author-X-Name-First: Thomas
Author-X-Name-Last: Rhoads
Title: Reputation and the league standing effect: the case of a split season in minor league baseball
Abstract: 
 Split season league design resets standings at the midpoint of the season, thus allowing for two periods in which a team can potentially achieve success in a single season. This context allows us to test both the reputation of the first half winner and the league standing effect on demand. Examination of game-level data from the 2010 Southern League reveals fans are unaffected by measures of both team quality and league standing in the second half of the season. On the other hand, the first half winners saw an 11% increase in attendance as a percent of stadium capacity, suggesting that in the second half of the season winners matter more than winning.
Journal: Applied Economics
Pages: 4447-4455
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1456646
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1456646
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4447-4455




Template-Type: ReDIF-Article 1.0
Author-Name: Jan R. Kim
Author-X-Name-First: Jan R.
Author-X-Name-Last: Kim
Author-Name: Keunsuk Chung
Author-X-Name-First: Keunsuk
Author-X-Name-Last: Chung
Title: Putting the present value model into practice: a comparison of two alternative approaches
Abstract: 
 A key issue around putting the present-value model into practice is how to construct the unobserved future expectations of the fundamental variables related to an asset. One approach is to fit a vector autoregression (VAR) for the fundamental variables and deduce their future expectations from the estimated VAR. An alternative is to directly specify the future expectations as unobserved components (UC) and use the Kalman filter to extract their estimates from the realized data. This article examines whether the predictions of the present-value model are consistent across the two approaches. Constructing the VAR and UC versions of the standard present-value model, we examine how the two versions compare in identifying the main driver of the US and UK housing markets. For the UK, the two approaches consistently attribute most variations in the price–rent ratio to the expected future risk premium for housing investment. For the US, however, the two approaches deliver considerably different results: the VAR version marks the expected risk-free rate of return, whereas the UC version singles out the expected risk premium as the main driver of the ratio. We conclude that the choice between the VAR and UC approaches is not a trivial issue related to utilizing the present-value model.
Journal: Applied Economics
Pages: 4456-4469
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1456647
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1456647
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4456-4469




Template-Type: ReDIF-Article 1.0
Author-Name: Jane Du
Author-X-Name-First: Jane
Author-X-Name-Last: Du
Author-Name: Cheng King
Author-X-Name-First: Cheng
Author-X-Name-Last: King
Title: China’s government finance and food security nexus: a regime switching analysis
Abstract: 
 This paper is an empirical assessment of the government finance and food security nexus in China from 1978 to 2016. Using autoregressive distributed lag for linear and threshold cointegration, the results suggest that China’s government finance and food security have reinforced each other throughout the reform era when a structural break was allowed in the model. However, the strength of cointegration and Granger causality in the government-led food security link is stronger, hence supporting the state interventionist view that a strong state has played a dominant role in fulfilling national food security in China. China’s government finance and food security changes indicate food sector reform probabilities under fiscal constraint, as regime-switching indicators have delineated the Chinese government’s difficult fiscal periods and the main reforms in the food sector. In practice, this result implies that further policy reforms can be effective for China’s future food security.
Journal: Applied Economics
Pages: 4470-4487
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1456648
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1456648
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4470-4487




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Paul Williams
Author-X-Name-First: Paul
Author-X-Name-Last: Williams
Title: Does customer satisfaction have directional predictability for U.S. discretionary spending?
Abstract: 
 Research indicates that past growth in customer satisfaction is an important factor in explaining the in-sample behaviour of growth in discretionary spending. Motivated by such evidence, we take an out-of-sample forecasting approach to examine whether customer satisfaction has directional predictability for two types of discretionary spending. These include spending on motor vehicles and spending on recreation services, which display frequent negative growth for the period 1995–2015. Our results indicate that customer satisfaction accurately predicts the direction of change in both types of spending under symmetric loss. To augment, we further show that the widely reported consumer sentiment has no directional predictability for either types of discretionary spending.
Journal: Applied Economics
Pages: 5504-5511
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1311002
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311002
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5504-5511




Template-Type: ReDIF-Article 1.0
Author-Name: Prasanna Surathkal
Author-X-Name-First: Prasanna
Author-X-Name-Last: Surathkal
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Title: Retail price responses to changes in wholesale prices in the US beef industry: differences among quality grades and primal cuts
Abstract: 
 This study examines the transmission of wholesale prices to retail prices for differentiated beef products. Specifically, we study vertical price movement for products differentiated by quality grades and primal cuts in the US beef industry. Our study considers two quality grades– United States Department of Agriculture (USDA) Choice and USDA Select, and three primal cuts– chuck, round and sirloin. Using threshold-based autoregressive and error correction models, and non-linear impulse response functions, we explore if characteristics of price adjustment differ by quality attributes of the products. Results show that there exists the ‘rocket and feather’ effect in the adjustment of retail prices of most beef grades and cuts in response to changes in wholesale prices, and such asymmetric adjustment effect is more pronounced for higher quality grade (Choice) than lower quality grade (Select). Evidence of similar price adjustment is found from the high-quality cut (sirloin). Our results underscore the differences in price adjustment by product quality in the US beef industry.
Journal: Applied Economics
Pages: 5512-5522
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1311003
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311003
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5512-5522




Template-Type: ReDIF-Article 1.0
Author-Name: Lauren Calimeris
Author-X-Name-First: Lauren
Author-X-Name-Last: Calimeris
Author-Name: Christina Peters
Author-X-Name-First: Christina
Author-X-Name-Last: Peters
Title: Food for thought: the birth-order effect and resource allocation in Indonesia
Abstract: 
 Despite the large literature linking birth order to socio-economic outcomes, research uncovering the mechanisms that drive these effects has been rare. We construct a unique measure of nutritional variety to examine whether differential resource allocation among siblings explains the birth-order effect on cognitive ability. We document birth-order differences among children and young adults, showing that second and third borns perform worse on cognitive assessments compared to their firstborn siblings. We find further evidence suggesting that second- and third-born children frequently eat a smaller variety of food than their first-born counterparts. However, this differentiation in food allocation does not appear to drive the differences in cognitive ability in our sample. To our knowledge, this article is the first both to confirm the presence of a birth-order effect on cognition in a developing country and to test empirically whether a difference in food allocation contributes to this effect.
Journal: Applied Economics
Pages: 5523-5534
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1311005
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311005
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5523-5534




Template-Type: ReDIF-Article 1.0
Author-Name: Karoline Krätschell
Author-X-Name-First: Karoline
Author-X-Name-Last: Krätschell
Author-Name: Torsten Schmidt
Author-X-Name-First: Torsten
Author-X-Name-Last: Schmidt
Title: Long-run waves or short-run fluctuations – what establishes the correlation between oil and food prices?
Abstract: 
 The strong correlation between food prices and energy prices has gained much attention in the public debate. In this article, we focus on the so-called excess co-movement, which is the correlation between crude oil price and the prices of food commodities after controlling for economic activity. We use a frequency domain Granger causality test to analyse short-run and long-run relationships between crude oil prices and prices of food commodities. For important biofuel inputs like maize, soybeans, rapeseed and EU sugar, we find evidence for long-run Granger causality in particular for the period after 2007. This supports the hypothesis that the increasing biofuel production creates the link between the prices of crude oil and food commodities. However, we also find short-run Granger causality for various food commodities. This result is more in line with herd behaviour or speculation in commodity markets.
Journal: Applied Economics
Pages: 5535-5546
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313948
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313948
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5535-5546




Template-Type: ReDIF-Article 1.0
Author-Name: Roger C. Y. Chen
Author-X-Name-First: Roger C. Y.
Author-X-Name-Last: Chen
Author-Name: Chen-Hsun Lee
Author-X-Name-First: Chen-Hsun
Author-X-Name-Last: Lee
Title: Assessing whether corporate social responsibility influence corporate value
Abstract: 
 This study used the corporate social responsibility (CSR) index to gauge the corporate value and social responsibility performance of corporations in Taiwan. We investigated whether CSR influences corporate value and whether the extent of that influence varies with corporate value or time. The results indicate that the influence of CSR on corporate value does not change with time. CSR exerts a positive influence on company value, and this influence does not change over time. However, the extent of the influence significantly varies with corporate value. When the corporate value of a company is not high, investing in CSR would only increase costs and fail to effectively increase corporate value. In contrast, if the corporate value of the company is high, investments in CSR in this circumstance would instead promote the effective increase of corporate value.
Journal: Applied Economics
Pages: 5547-5557
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313949
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313949
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5547-5557




Template-Type: ReDIF-Article 1.0
Author-Name: Lixiong Yang
Author-X-Name-First: Lixiong
Author-X-Name-Last: Yang
Title: An assessment on the quality of China’s preliminary data of quarterly GDP announcements
Abstract: 
 This article examines the quality of China’s preliminary announcements of the quarterly GDP. We modify the tests for unbiasedness and efficiency by incorporating the Fourier approximation to capture the effect of the state of the economy, and employing the Kiefer, Vogelsang and Bunzel (KVB) approach, developed by KVB in 2000 to reconstruct the tests to improve the finite sample properties. The results show that: (1) there is no enough evidence to support that the preliminary and first revised data are unbiased and efficient; (2) there exist systematic errors related to the state of the economy, and hence information about the state of the economy was not incorporated into the GDP data. Furthermore, we find that there is a possibility that these systematic errors associated with the stages of the business cycle may offset each other, and there is also a possibility that there exist offsetting errors in the underlying components of GDP.
Journal: Applied Economics
Pages: 5558-5569
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313950
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313950
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5558-5569




Template-Type: ReDIF-Article 1.0
Author-Name: J. Harold
Author-X-Name-First: J.
Author-X-Name-Last: Harold
Author-Name: J. Cullinan
Author-X-Name-First: J.
Author-X-Name-Last: Cullinan
Author-Name: S. Lyons
Author-X-Name-First: S.
Author-X-Name-Last: Lyons
Title: The income elasticity of household energy demand: a quantile regression analysis
Abstract: 
 This article examines variation in the income elasticity of household energy demand across the energy expenditure distribution using expenditure data from the five most recent Household Budget Surveys (HBSs) in Ireland: the 1987, 1994/1995, 1999/2000, 2004/2005 and 2009/2010 HBS. The analysis uses a two-stage instrumental variable quantile regression approach and is based on each HBS cross section, as well as the overall pooled observations. The estimated elasticities are compared across low- and high-energy-consumption scenarios and to a benchmark elasticity estimated using two-stage least squares. The results provide evidence that there is significant variation in the income elasticities across the energy expenditure distribution and that care must be taken when using the constant mean elasticity for policy purposes. More specifically, any examination of the future impact of a change in income support policy measures on energy consumption should recognize the substantial context-dependent variation in the income elasticity.
Journal: Applied Economics
Pages: 5570-5578
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313952
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313952
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5570-5578




Template-Type: ReDIF-Article 1.0
Author-Name: Aleida Cobas-Valdés
Author-X-Name-First: Aleida
Author-X-Name-Last: Cobas-Valdés
Author-Name: Javier Fernández-Macho
Author-X-Name-First: Javier
Author-X-Name-Last: Fernández-Macho
Author-Name: Ana Fernández-Sainz
Author-X-Name-First: Ana
Author-X-Name-Last: Fernández-Sainz
Title: Earnings distribution of Cuban immigrants in the USA: evidence from quantile regression with sample selection
Abstract: 
 This article analyses the conditional earnings distribution for Cuban immigrants in the USA considering Buchinsky sample selection in a quantile regression model. The test proposed by Huber and Melly to test the independence between error terms and regressors (conditional on the selection probability) is also considered. This is the first attempt in the migration literature to use quantile regression with sample selection. The data used come from the US American Community Survey. The results show that the hypothesis of conditional independence is not rejected, and increments in earnings associated with the usual socioeconomic characteristics in labour studies vary between the cohorts considered. The main conclusions are that a decline in returns from education may be a sign that a high level of education no longer provides a competitive advantage and that being a black person is associated with substantially lower earnings regardless of the individuals’ position in the earnings distribution. This may explain why, historically, comparatively fewer black Cubans have made the decision to emigrate to the USA because of a lack of economic incentives.
Journal: Applied Economics
Pages: 3685-3700
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265079
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265079
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3685-3700




Template-Type: ReDIF-Article 1.0
Author-Name: Doris Oberdabernig
Author-X-Name-First: Doris
Author-X-Name-Last: Oberdabernig
Author-Name: Alyssa Schneebaum
Author-X-Name-First: Alyssa
Author-X-Name-Last: Schneebaum
Title: Catching up? The educational mobility of migrants’ and natives’ children in Europe
Abstract: 
 Migrants into European countries are often less educated than European natives. We analyse whether migrants’ children are more or less likely than natives’ children to achieve upward educational mobility across generations, and study differences in the factors, which contribute to differences in mobility for the two groups. We find that migrants’ descendants are more often upwardly mobile (and less often downwardly mobile) than their native peers in the majority of countries studied, and show that the main factor contributing to these patterns is the education level of parents. Although a lower parental education means that their children are less likely to access the same amount of human, social and financial capital as children of more highly educated parents, migrants’ descendants over the last two generations were able to make significant progress in reducing education gaps with natives.
Journal: Applied Economics
Pages: 3701-3728
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267843
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267843
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3701-3728




Template-Type: ReDIF-Article 1.0
Author-Name: I. Mauleón
Author-X-Name-First: I.
Author-X-Name-Last: Mauleón
Author-Name: J. Sardà
Author-X-Name-First: J.
Author-X-Name-Last: Sardà
Title: Unemployment and the shadow economy
Abstract: 
 Current research links the shadow economy (SE) and the unemployment rate either indirectly or by means of a preliminary estimate. This article establishes and empirically implements a methodology for estimating the size of the SE as a direct function of the tax and unemployment rates. This link is found to be extremely relevant in countries with high unemployment rates (such as Greece and Spain) and less relevant in countries with moderate unemployment rates (such as Germany and Italy). Unemployment’s contribution to the SE is shown to be significant, especially in the years following the economic downturn of 2008. The calculation of the variance and distribution of these estimates is another significant contribution. The common criticism that SE estimates are unreliable is addressed by calculating the variance and the distribution of the estimates, and the large size of the SE in Greece and Spain is once again confirmed.
Journal: Applied Economics
Pages: 3729-3740
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267844
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267844
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3729-3740




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Malikane
Author-X-Name-First: Christopher
Author-X-Name-Last: Malikane
Title: The labour share and the dynamics of output
Abstract: 
 We derive a new Keynesian IS curve that is augmented to capture the direct effects of the labour share on output. Our derivation shows that the direct effect of the labour share on output is ambiguous. Furthermore, theory suggests that the expected labour share negatively affects output. Empirically, we find that the labour share plays a significant role in driving output dynamics. However contrary to theoretical expectation, the expected labour share positively affects output in some cases, a finding we call the ‘labour share puzzle’. We also find that over time, there seems to be a general shift in aggregate demand dynamics towards being profit-led, i.e. rising labour share decreases output. We conclude that policymakers should not ignore the labour share in their decisions.
Journal: Applied Economics
Pages: 3741-3750
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267845
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267845
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3741-3750




Template-Type: ReDIF-Article 1.0
Author-Name: Liam J. A. Lenten
Author-X-Name-First: Liam J. A.
Author-X-Name-Last: Lenten
Title: Racial discrimination in umpire voting: an (arguably) unexpected result
Abstract: 
 Using data from an official most valuable player award in professional sport, we test for the presence of discrimination by match officials (umpires), who are responsible for ranking the top three players within each match. These umpires are found to award significantly more votes to (and have a higher probability of voting for) players identified as (Australian) Indigenous, after controlling for within-match production. The result offers further evidence on racial discrimination, and runs counter to numerous analogous studies both in sport, as well as in labour and other socio-economic outcomes in general.
Journal: Applied Economics
Pages: 3751-3757
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267848
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267848
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3751-3757




Template-Type: ReDIF-Article 1.0
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Michel Dombrecht
Author-X-Name-First: Michel
Author-X-Name-Last: Dombrecht
Author-Name: Karim Barkat
Author-X-Name-First: Karim
Author-X-Name-Last: Barkat
Title: Asymmetric responses of money demand to oil price shocks in Saudi Arabia: a non-linear ARDL approach
Abstract: 
 Saudi Arabia is an open oil-based economy with fixed exchange rates; therefore, it has limited monetary policy autonomy. Using non-linear autoregressive distributed lag approach, this article investigates the asymmetric effects of oil price shocks on the demand of money in Saudi Arabia over the period 1990:Q1–2014:Q4. The empirical results show evidence of positive long run but asymmetric effects of oil price shocks on the money demand. In particular, we find that the positive oil price shocks are more important than negative shocks. Therefore, two policy responses can be considered: either sustaining the fixed exchange rate regime and following an economic diversification policy or switching towards a flexible exchange rate regime to achieve price stability. In that case, the existence of a stable money demand function in Saudi Arabia is a necessary precondition for adopting a monetary policy strategy targeted to price stability using instruments like money targeting.
Journal: Applied Economics
Pages: 3758-3769
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267849
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267849
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3758-3769




Template-Type: ReDIF-Article 1.0
Author-Name: Iñigo Fernández
Author-X-Name-First: Iñigo
Author-X-Name-Last: Fernández
Author-Name: Víctor M. González
Author-X-Name-First: Víctor M.
Author-X-Name-Last: González
Title: Corporate valuation and social capital: a cross-country analysis
Abstract: 
 This article analyses the influence of social capital on corporate valuation for a sample of 55 countries over the period 1995–2012. The results suggest that social capital is an important determinant of corporate valuation. Interpersonal trust and civic cooperation enhance corporate valuation, even though other institutional and legal characteristics are considered. Furthermore, our results reveal that corporate valuation increases with the GDP annual growth rate, legal enforcement and the protection of shareholders’ rights, but that it is negatively affected by corruption and protection of creditors’ rights. We also obtain some evidence suggesting that civic cooperation has a greater influence over corporate valuation in poorer countries.
Journal: Applied Economics
Pages: 3770-3781
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267850
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267850
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3770-3781




Template-Type: ReDIF-Article 1.0
Author-Name: Rogiene Batista dos Santos
Author-X-Name-First: Rogiene Batista
Author-X-Name-Last: dos Santos
Author-Name: Fabiano Guasti Lima
Author-X-Name-First: Fabiano Guasti
Author-X-Name-Last: Lima
Author-Name: Rafael Confetti Gatsios
Author-X-Name-First: Rafael Confetti
Author-X-Name-Last: Gatsios
Author-Name: Rodrigo Borges de Almeida
Author-X-Name-First: Rodrigo Borges
Author-X-Name-Last: de Almeida
Title: Risk management and value creation: new evidence for Brazilian non-financial companies
Abstract: 
 The practice of financial risk management with derivatives has received attention both from the academia and the market. In Brazil, there is a growing use of these instruments by companies, in line with the growth of such market in the global economy. This article aims to investigate the relationship between the financial risk management and the value creation to the shareholder for non-financial Brazilian companies. The sample was made up of 1794 firm-year observations from 2006 to 2014. Results obtained via panel data, including the GMM, point out that companies which used derivatives did not add value during the period analysed. An explanation for this result is that most of the companies use derivatives in order to manage the cash flow and not to add value.
Journal: Applied Economics
Pages: 5815-5827
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343451
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343451
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5815-5827




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: James W. Saunoris
Author-X-Name-First: James W.
Author-X-Name-Last: Saunoris
Title: Unemployment and international shadow economy: gender differences
Abstract: 
 Adding to the body of research on cross-country determinants of the informal economy, this article studies how unemployment differences across gender drive the propensities to work in the informal sector. Results, accounting for possible simultaneity between unemployment and the shadow economy, show that unemployed males, rather than unemployed females, were more likely to operate underground. These findings about greater male propensities are generally robust to alternative considerations.
Journal: Applied Economics
Pages: 5828-5840
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343452
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343452
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5828-5840




Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Su-Ling Tsai
Author-X-Name-First: Su-Ling
Author-X-Name-Last: Tsai
Author-Name: Kai-yin Allison Haga
Author-X-Name-First: Kai-yin Allison
Author-X-Name-Last: Haga
Title: Uncovering the interrelationship between the U.S. stock and housing markets: a bootstrap rolling window Granger causality approach
Abstract: 
 The purpose of this study is to investigate the time-varying interrelationship between the housing market and the stock market in the U.S. during the period of 1890–2013, by employing a rolling window subsample with a bootstrap Granger causality test. The rolling window allows for structural changes in the economy over time. Whereas previous studies have not identified a causal relationship between the U.S. housing price index and the SP500 stock price index, this new analysis is the first to identify certain periods wherein either the wealth effect or the investment effect can be observed.
Journal: Applied Economics
Pages: 5841-5848
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1346365
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346365
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5841-5848




Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyuk Kim
Author-X-Name-First: Dong-Hyuk
Author-X-Name-Last: Kim
Author-Name: Yong Song
Author-X-Name-First: Yong
Author-X-Name-Last: Song
Author-Name: Huaxin Xu
Author-X-Name-First: Huaxin
Author-X-Name-Last: Xu
Title: A fast estimation procedure for discrete choice random coefficients demand model
Abstract: 
 We document speed-up gains of graphical processing unit (GPU) computing over central processing unit (CPU) for the estimation of discrete choice random coefficient demand model. When we use a moderate-sized GPU, the computation is six to twenty times faster, where the smallest speed-up factor, six, is obtained from a comparison with the parallel computing over sixteen CPU cores.
Journal: Applied Economics
Pages: 5849-5855
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1349289
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349289
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5849-5855




Template-Type: ReDIF-Article 1.0
Author-Name: Hanae Tamechika
Author-X-Name-First: Hanae
Author-X-Name-Last: Tamechika
Author-Name: Shin’ya Okuda
Author-X-Name-First: Shin’ya
Author-X-Name-Last: Okuda
Title: Stock price responses to the eco-points programme for electrical household appliances: evidence from Japan
Abstract: 
 This article examines the Japanese government’s ‘Project for Green Consumer Electronics to Promote Business through the Use of Eco-points’ and its economic impact on consumer electronics firms’ stock prices. There has been little research on the economic effect of this project. In order to achieve our aim, we employ event study methodology. Our results show that stock prices responded positively to programme adoption, thereby indicating that the programme had positive effects on the related firms’ performance. The results also show that the programme’s economic effects gradually decreased over each subsequent programme extension. This probably occurred because the programme targeted durable goods, which consumers do not replace frequently.
Journal: Applied Economics
Pages: 5856-5864
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1352076
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352076
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5856-5864




Template-Type: ReDIF-Article 1.0
Author-Name: Emanuel Bagna
Author-X-Name-First: Emanuel
Author-X-Name-Last: Bagna
Author-Name: Grazia Dicuonzo
Author-X-Name-First: Grazia
Author-X-Name-Last: Dicuonzo
Author-Name: Andrea Perrone
Author-X-Name-First: Andrea
Author-X-Name-Last: Perrone
Author-Name: Vittorio Dell’Atti
Author-X-Name-First: Vittorio
Author-X-Name-Last: Dell’Atti
Title: The value relevance of brand valuation
Abstract: 
 The reports published by independent parties are often used to provide an estimation of brands due to the lack of literature and best practices regarding which brand valuation method is more value relevant and reliable than another. Over the last several years, brand valuation debate is growing in importance because of the need to provide a value of intangibles for different purposes. The purpose of this study is two-fold. First, we aim to understand whether brand valuation related to listed companies provided by three independent agencies is value relevant and therefore whether these brand valuations are taken into consideration by investors in their decision-making process. Second, we assess which of the three methods reflects the stock markets in a better way. We analyse a sample of 71 brands valuated by Interbrand, Brand Finance and BrandZ from 2013 to 2015. The results show that brand valuation provided by the independent agencies is value relevant; in addition, they reveal that the Brand Finance method, based on the royalty relief approach, is more value relevant than the others. This study contributes to the extant literature on value relevance by providing evidence on the impact of stock prices of brand agencies’ valuation.
Journal: Applied Economics
Pages: 5865-5876
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1352078
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352078
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5865-5876




Template-Type: ReDIF-Article 1.0
Author-Name: Kristina Brščić
Author-X-Name-First: Kristina
Author-X-Name-Last: Brščić
Author-Name: Tina Šugar
Author-X-Name-First: Tina
Author-X-Name-Last: Šugar
Author-Name: Danijela Poljuha
Author-X-Name-First: Danijela
Author-X-Name-Last: Poljuha
Title: An empirical examination of consumer preferences for honey in Croatia
Abstract: 
 In past years, beekeeping as an agricultural sector has become more organized, but there is still a gap in knowledge in considering consumer preferences for honey. The aim of the research was to determine consumer preferences for honey and their attitudes towards the Protected Designation of Origin (PDO) label. Also, in the article is presented the current situation regarding the honey market and legislation of the PDO label at the EU and national levels. The result of the empirical research carried out on a sample of 1008 respondents showed that they mostly prefer a mild flavour and brighter colour of honey. According to the type, most of the respondents prefer acacia rather than floral and meadow honeys or other types of honey. The most common method of honey purchase is directly from the producers (75%). The results of the Principle Component Analysis (PCA) showed that the most important attributes are the intrinsic attributes of the honey and that the most common reasons for purchasing and consuming honey are for its health and medical benefits. The obtained results fill the gap in knowledge regarding consumer preferences for honey in the Croatian market and can be useful for the creation of new honey-marketing strategies for local beekeepers.
Journal: Applied Economics
Pages: 5877-5889
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1352079
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352079
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5877-5889




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Philip Makofske
Author-X-Name-First: Matthew Philip
Author-X-Name-Last: Makofske
Title: Are you hiring Johnny Football or Johnny Doe? Uncertain labour quality and the measurement of monopsony in college football
Abstract: 
 I assess monopsony in the college football labour market as it relates to both typical and elite performers, while also accounting for the uncertain performance quality of prospective players who are in this labour market. Existing studies suggest that the marginal revenue product (MRP) of elite collegiate players later drafted into the National Football League (NFL), significantly exceeds their compensation. These comparisons overstate monopsony rents because schools don’t know ex ante which prospects will become these elite performers. Using financial data spanning 2004–2011 from 114 major schools, I estimate the MRP of players sorted into three ex post quality tiers, and find that while eventual NFL draftees generate revenue that significantly exceeds their compensation, a majority of scholarship players do not. Then, using Rivals.com talent ratings of 6,604 prospective players recruited from 2002–2008, I estimate the probability that prospects will reach each ex post quality tier given their ex ante ratings. MRP estimates are adjusted by these conditional probability estimates to reflect the expected MRP of prospects, which allows more appropriate assessment of monopsony rents. I find that schools possess substantially less monopsony power than unadjusted MRP estimates suggest.
Journal: Applied Economics
Pages: 2415-2430
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397854
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397854
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2415-2430




Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel
Author-X-Name-First: D. A.
Author-X-Name-Last: Peel
Title: An explanation of each-way wagers in three models of risky choice
Abstract: 
 Punters may engage in betting on both a selection in an event to finish first or in one of the number of places, e.g. second, third or fourth. When the amounts staked with bookmakers at fixed odds on the win and place are equal, it is called an each-way bet. Each-way bets are apparently popular with punters but inconsistent with prominent models of wagering which assume gamblers are everywhere risk-seeking. In this note, we derive the conditions for win and place bets to be optimal in these three models of risky choice. The mathematical conditions for the each-way wager to be optimal, as opposed to a win and place wager with different stakes, are complicated and appear likely to occur rarely in practice. However, bettors obviously see the attraction in giving themselves two ways to bet on the one horse or two ways to win and betting each way. We suggest part of the ‘each-way’ betting attraction is that they are quick and easy to compute – a heuristic – to solve an otherwise complex betting strategy.
Journal: Applied Economics
Pages: 2431-2438
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397855
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397855
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2431-2438




Template-Type: ReDIF-Article 1.0
Author-Name: Don U.A. Galagedera
Author-X-Name-First: Don U.A.
Author-X-Name-Last: Galagedera
Title: Modelling superannuation fund management function as a two-stage process for overall and stage-level performance appraisal
Abstract: 
 We assess superannuation fund performance in a multi-dimensional framework by conceptualizing its management function as a serially linked two sub-process; operational management (OM) and portfolio management (PM). The procedure that we adopt is data envelopment analysis (DEA). We express overall efficiency as a weighted average of the two sub-process efficiencies and assess overall efficiency conditional on their relative importance. We demonstrate application of our model using a sample of Australian superannuation funds. By appraising performance in two sample periods; crisis (2008) and relatively non-crisis (2014), we show that some findings of previous studies may be explained further through the proposed multi-stage framework. The best overall performer in 2008 is public sector funds and in 2014 it is corporate funds. Decomposition of overall efficiency reveals that public sector funds, on average, outperform all other fund categories in OM. However, no specific fund category dominates PM performance in both assessment periods. The driving force behind the observed inverse association between superannuation fund size and performance appears to be PM performance. Number of investment options offered is not associated with overall, OM and PM performance. Here, we demonstrate that performance appraisal from different aspects of management provide insightful information to superannuation fund managers.
Journal: Applied Economics
Pages: 2439-2458
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400649
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400649
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2439-2458




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Meneu Gaya
Author-X-Name-First: Robert
Author-X-Name-Last: Meneu Gaya
Author-Name: José-Enrique Devesa Carpio
Author-X-Name-First: José-Enrique
Author-X-Name-Last: Devesa Carpio
Author-Name: Inmaculada Domínguez Fabián
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Domínguez Fabián
Author-Name: Borja Encinas Goenechea
Author-X-Name-First: Borja
Author-X-Name-Last: Encinas Goenechea
Author-Name: Juan-José Alonso Fernández
Author-X-Name-First: Juan-José
Author-X-Name-Last: Alonso Fernández
Title: The effects of recent Spanish pension reforms on sustainability and pension adequacy
Abstract: 
 The Spanish pension system has been recently reformed as a response to the demographic challenge and with the objective of ensuring the sustainability of the pension system in the long-term. The overall reforms include changes in the majority of the system parameters, a new indexation rule and a sustainability factor that links life expectancy and the first pension amount. The aim of this work is to analyse how these reforms affect two important features of a pension system: fiscal sustainability and adequacy. For this purpose, the real internal rate of return (IRR) of the lifetime contributions and benefits and the prospective gross theoretical replacement rate (TRR), both before and after the reforms, have been computed. The calculations are case-study based, for a few hypothetical workers who are sufficiently representative of the earnings and retirement patterns in Spain. The results show that the real IRR is 0.7 p.p. lower and the prospective gross TRR is 18 p.p. lower after the reform process for the base case of a man with an uninterrupted career of 40 years with average earnings and a retirement age of 65. In addition, pension reform process in Spain has different effects among the individuals depending on the gender, level of earnings, retirement age and career length.
Journal: Applied Economics
Pages: 2459-2468
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400650
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400650
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2459-2468




Template-Type: ReDIF-Article 1.0
Author-Name: Kuniyoshi Saito
Author-X-Name-First: Kuniyoshi
Author-X-Name-Last: Saito
Author-Name: Daisuke Tsuruta
Author-X-Name-First: Daisuke
Author-X-Name-Last: Tsuruta
Title: Information asymmetry in small and medium enterprise credit guarantee schemes: evidence from Japan
Abstract: 
 In this article, we investigate whether there is adverse selection and/or moral hazard in credit guarantee schemes for small and medium enterprises (SMEs) in Japan. As credit guarantee corporations cannot distinguish low risk from risky borrowers, credit guarantee schemes typically attract a larger proportion of risky borrowers, which results in inefficient resource allocation. Using bank-level data, we analyse whether the default rate is positively associated with the ratio of guaranteed loans to total loans, and find that the data are consistent with an adverse selection and/or moral hazard hypothesis. Further analysis shows that the relationship is stronger for 100% coverage than for 80% coverage, indicating that the ‘20% self-payment’ requirement somewhat mitigates the problem, but not enough to eliminate it altogether.
Journal: Applied Economics
Pages: 2469-2485
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400651
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400651
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2469-2485




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Title: Relationship between oil price and exchange rate by FDA and copula
Abstract: 
 This article investigates the relationship between daily crude oil prices and exchange rates. Functional data analysis is used to show the clustering pattern of exchange rates and oil prices over the time period through high dimensional visualizations. We select exchange rates for important currencies related to crude oil prices by using the objective Bayesian variable selection method. The selected sample data exhibits non-normal distribution with fat tails and skewness. Under the non-normality of the return series, we use copula functions that do not require to assume the bivariate normality to consider marginal distribution. In particular, our study applies the popular and powerful statistical methods such as Gaussian copula partial correlations and Gaussian copula marginal regression. We find evidence of significant dependence for all considered pairs, except for the Mexican peso-Brent. Our empirical results also show that the rise in the West Texas Intermediate (WTI) oil price returns is associated with a depreciation of the US dollar.
Journal: Applied Economics
Pages: 2486-2499
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400652
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400652
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2486-2499




Template-Type: ReDIF-Article 1.0
Author-Name: Sediq Sameem
Author-X-Name-First: Sediq
Author-X-Name-Last: Sameem
Author-Name: Kevin Sylwester
Author-X-Name-First: Kevin
Author-X-Name-Last: Sylwester
Title: Crime during the business cycle: urban–rural differences
Abstract: 
 Despite the abundant literature on how crime evolves over the business cycle, no consensus has arisen whether crime increases or decreases during recessions. The literature provides both positive and negative associations between the crime rate and the unemployment rate, a commonly used proxy for the business cycle. This study revisits this issue and uses county-level data from 1990 to 2013. It allows for differences as to how unemployment relates to both property crime and violent crime depending on the size of the counties. We find evidence of a positive association between unemployment and property crime that strengthens with county size. The results show the same pattern for violent crime but are statistically weaker. Our findings suggest that the positive association between property crime and unemployment that others have found is largely driven by more populous areas.
Journal: Applied Economics
Pages: 2500-2508
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400653
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400653
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2500-2508




Template-Type: ReDIF-Article 1.0
Author-Name: Omar Farooq
Author-X-Name-First: Omar
Author-X-Name-Last: Farooq
Title: What determines the value of recommendation change? A preliminary analysis
Abstract: 
 This article determines the condition under which recommendation changes relative to consensus recommendation and recommendation changes relative to analyst’s previous recommendation are valuable. We show that recommendation upgrades (downgrades) relative to consensus recommendation are followed by significantly positive (negative) short-term returns whenever consensus recommendation represents convergence of analysts’ opinions. We also show that as the standard deviation associated with consensus recommendation increase, the value of recommendation changes reduce significantly. This article also shows that recommendation upgrades (downgrades) relative to analyst’s previous recommendation are followed by significantly positive (negative) short-term returns whenever interval between two consecutive recommendations is relatively short. We also show that, as the interval between two consecutive recommendations increase, the value of recommendation changes reduce significantly. Our results are robust across various subsamples based on size and region.
Journal: Applied Economics
Pages: 1557-1570
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221043
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221043
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1557-1570




Template-Type: ReDIF-Article 1.0
Author-Name: Anne Briand
Author-X-Name-First: Anne
Author-X-Name-Last: Briand
Author-Name: Amandine Loyal Laré-Dondarini
Author-X-Name-First: Amandine Loyal
Author-X-Name-Last: Laré-Dondarini
Title: Impact of improved water services in informal neighbourhoods in Ouagadougou
Abstract: 
 This article examines the impact of a project to improve water services in underserved neighbourhoods in Ouagadougou on household water access conditions. We used the propensity-score matching method to analyse data from a survey carried out in 2011, and found that the improvement project cut the cost of water neighbourhood-wide by 94 CFA francs per cubic meter, reduced the portion of this expense by 1% of the average household budget, and cut the daily time to collect water by 10–13 min. The results that we obtained through the propensity-score matching method differ from those obtained by simply comparing the averages of the neighbourhoods participating in the project to those that did not participate. This indicates that the propensity-score matching method of impact evaluation is valuable in supplying decision makers with nonbiased estimates of the link between ease of access to water and poverty reduction.
Journal: Applied Economics
Pages: 1571-1583
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221044
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221044
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1571-1583




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Abdulrahman Al Shayeb
Author-X-Name-First: Abdulrahman
Author-X-Name-Last: Al Shayeb
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: The effect of oil prices on stock prices: fresh evidence from asymmetric causality tests
Abstract: 
 This article investigates the causal impact of oil prices on stock prices in each G7 market as well as in the world market. An asymmetric causality test developed by Hatemi-J is used for this purpose. Since the underlying data appears to be non-normal with time-varying volatility, we use bootstrap simulations with leverage adjustments in order to produce more reliable critical values than the asymptotic ones. Based on symmetric causality tests, we find no causal effect of oil prices on the stock prices of the world market or any of the G7 countries. However, when we apply an asymmetric causality test, we find that increasing oil prices cause stock prices to rise in the world, the U.S. and Japan while decreasing oil prices cause stock prices to fall in Germany. This may imply that the world, the U.S. and Japanese stock markets consider increases in oil prices as an indicator of good news as this may mean that there is an increase in oil demand due to an expected growth in the economy while the German stock market treats decreasing oil prices as a signal of an expected contraction in the economy.
Journal: Applied Economics
Pages: 1584-1592
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221045
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221045
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1584-1592




Template-Type: ReDIF-Article 1.0
Author-Name: Louinord Voltaire
Author-X-Name-First: Louinord
Author-X-Name-Last: Voltaire
Author-Name: Loic Lévi
Author-X-Name-First: Loic
Author-X-Name-Last: Lévi
Author-Name: Frédérique Alban
Author-X-Name-First: Frédérique
Author-X-Name-Last: Alban
Author-Name: Jean Boncoeur
Author-X-Name-First: Jean
Author-X-Name-Last: Boncoeur
Title: Valuing cultural world heritage sites: an application of the travel cost method to Mont-Saint-Michel
Abstract: 
 This article, using the zonal version of the travel cost method (ZTCM), provides the first economic valuation of recreational trips to Mont-Saint-Michel (MSM). The MSM was designated as United Nations Educational, Scientific and Cultural Organization World Heritage Site in 1979, and is the most visited coastal site in France. The potential effects on consumer surplus (CS) estimates of some aspects of the ZTCM are considered, namely the treatment of the multiple purpose/destination (MP/D) trips, the inclusion of the opportunity cost of time (OCT) in the recreation demand model and the heterogeneity in the preferences. The heterogeneity in the preferences is examined through a random parameters Poisson model (RPPM). The RPPM generalizes the standard Poisson model (SPM) by allowing coefficients of explanatory variables to vary randomly across geographical units rather than being fixed. Our results show that (1) substantial CS values are associated with the MSM; (2) excluding/ignoring MP/D trips result in biased CS estimates; (3) omitting OCT does not substantially bias CS estimates; (4) the RPPM provides richer information about the impact of explanatory variables on the demand for trips than the SPM, but (5) leads to statistically similar CS estimates than the SPM.
Journal: Applied Economics
Pages: 1593-1605
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221046
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221046
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1593-1605




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Cerqueira
Author-X-Name-First: Antonio
Author-X-Name-Last: Cerqueira
Author-Name: Claudia Pereira
Author-X-Name-First: Claudia
Author-X-Name-Last: Pereira
Title: Accruals quality, managers’ incentives and stock market reaction: evidence from Europe
Abstract: 
 We investigate if accruals quality is a valuable indicator of earnings quality for stock market investors. Our particular focus is on the incremental informative value of taking into account managers’ incentives for using accruals. We propose a market-based approach for assessing the usefulness of this indicator to improve investors’ decisions. Specifically, we examine the association between accruals quality and information asymmetry among stock market participants. Our empirical study uses data on European firms and our results are consistent with a positive association between poor earnings quality and high information asymmetry. However, given some previous studies suggesting that accruals-based measures may be noisy indicators of earnings quality, we develop a method to increase the informational content of the accruals quality measure. Based on our results, we find that combining accruals quality with the dispersion in analysts’ forecasts provides a better indicator of earnings quality rather than only accruals quality.
Journal: Applied Economics
Pages: 1606-1626
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221047
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221047
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1606-1626




Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth A. Yeager
Author-X-Name-First: Elizabeth A.
Author-X-Name-Last: Yeager
Author-Name: Michael R. Langemeier
Author-X-Name-First: Michael R.
Author-X-Name-Last: Langemeier
Title: Economic efficiency adjusted for risk preferences
Abstract: 
 This study investigates the impact of risk preferences on cost and revenue efficiency for a sample of farms. Risk preference scores were used to measure risk aversion. Cost and revenue efficiency were estimated using traditional input and output measures, and then re-estimated including each farm’s risk preference score. Comparisons were made between farms with and without a change in efficiency when each farm’s risk preference was included in the analysis. As expected, risk preference plays an important role in explaining farm inefficiency. Failure to account for risk preferences overstates inefficiency, particularly for slightly risk averse and risk neutral farms.
Journal: Applied Economics
Pages: 1627-1636
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223819
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223819
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1627-1636




Template-Type: ReDIF-Article 1.0
Author-Name: Isidro Frías-Pinedo
Author-X-Name-First: Isidro
Author-X-Name-Last: Frías-Pinedo
Author-Name: Rosario Díaz-Vázquez
Author-X-Name-First: Rosario
Author-X-Name-Last: Díaz-Vázquez
Author-Name: Ana Iglesias-Casal
Author-X-Name-First: Ana
Author-X-Name-Last: Iglesias-Casal
Title: Oil prices and economic downturns: the case of Spain
Abstract: 
 We address the macroeconomic effects of an oil price shock in Spain. We apply a vector autoregression model (VAR) analysis to quarterly data for the Spanish economy since 1986, to elucidate the effects of variations in the oil price on the economy, considering the three main causes of disruptions in the oil markets: oil supply shocks, oil demand shocks and oil-specific (precautionary) demand shocks. We conclude that the effects in Spain strongly depend on the type of shock: the consumer price index (CPI) has mainly been influenced by oil demand shocks; output has only reacted to oil supply shocks; and monetary policy has mainly reacted after precautionary shocks. Second-round effects caused by the behaviour of nominal wages have not been found. Additionally, we discuss two facts: the ability of firms to increase markups in a context of rising demand and the procyclical role of monetary policy when faced with oil demand shocks.
Journal: Applied Economics
Pages: 1637-1654
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223822
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223822
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1637-1654




Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Author-Name: Pengfei Jia
Author-X-Name-First: Pengfei
Author-X-Name-Last: Jia
Title: Financial crisis and persistence: evidence from sticky expectations consumption growth model
Abstract: 
 We estimate the degree of stickiness in aggregate consumption growth for the U.S. considering the effects of the Great Recession. The behavior of stickiness estimate in the crisis is somewhat as the U-shaped pattern. Our findings imply that during the crisis consumers&#x2019; attentiveness to aggregate information has slightly increased, thereby reducing the persistence of aggregate consumption growth. However, the reduction in persistence is transitory. Since 1980, the U.S. faced five recessions and in most of them the degree of stickiness declined, albeit temporarily.
Journal: Applied Economics
Pages: 1799-1807
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529394
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529394
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1799-1807




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Fern&#xE1;ndez-Herraiz
Author-X-Name-First: Carlos
Author-X-Name-Last: Fern&#xE1;ndez-Herraiz
Author-Name: Antonio Javier Prado-Dom&#xED;nguez
Author-X-Name-First: Antonio Javier
Author-X-Name-Last: Prado-Dom&#xED;nguez
Author-Name: Carlos Pateiro-Rodr&#xED;guez
Author-X-Name-First: Carlos
Author-X-Name-Last: Pateiro-Rodr&#xED;guez
Author-Name: Jes&#xFA;s M. Garc&#xED;a-Iglesias
Author-X-Name-First: Jes&#xFA;s M.
Author-X-Name-Last: Garc&#xED;a-Iglesias
Title: The role of the enhanced carry to risk on currency policy: the Mexican Peso
Abstract: 
 One of the most common measures of carry trade attractiveness is the carry-to-risk ratio. On analysing the speculative activity, this ratio presents two issues: First, emerging market currencies could merit a legitimate risk premium in a carry trade strategy due to the sovereign risks involved. In order to correct the measure, we include the credit risk in the measure using credit default swaps. Second, we gather more information about potential volatility asymmetries including a directional speculation indicator known as the risk reversal. We prove that the enhanced measure for the Mexican peso&#xA0;(MXN) is well represented by an ARIMA model with appropriate features since 2009. Due to the output of the analysis, we deduce that the Bank of Mexico might use this measure or a similar indicator, not only to understand the attractiveness of the carry trade strategy but to curb destabilizing carry trade activities. The case is compelling for the Mexican peso due to its dual role as emerging market currency and full convertible currency. We conclude that this institution may effectively manage the enhanced carry-to-risk measures in order to achieve financial stability and proper exchange credibility, and recognize its potential utility for other central banks.
Journal: Applied Economics
Pages: 1808-1816
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529395
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529395
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1808-1816




Template-Type: ReDIF-Article 1.0
Author-Name: Sulaiman A. Al-Jassar
Author-X-Name-First: Sulaiman A.
Author-X-Name-Last: Al-Jassar
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: The effect of quantitative easing on stock prices: a structural time series approach
Abstract: 
 A structural time series model is estimated and tested to examine the effect of quantitative easing (QE) on US stock prices. The model is estimated by maximum likelihood in a Time-varying parametric (TVP) framework, using the S&amp;P 500 index as the dependent variable and the Fed&#x2019;s balance as an explanatory variable in addition to the unobserved components accounting for the behaviour of variables that do not appear explicitly in the equation. The results show that QE had a sizeable, but not exclusive, effect on stock prices and that stock prices were also affected by other missing variables and cyclical movements. Several explanations are presented for the rise of the US stock market in the post-QE period, particularly since the election of Donald Trump.
Journal: Applied Economics
Pages: 1817-1827
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529396
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529396
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1817-1827




Template-Type: ReDIF-Article 1.0
Author-Name: Mingming Jiang
Author-X-Name-First: Mingming
Author-X-Name-Last: Jiang
Author-Name: John Shideler
Author-X-Name-First: John
Author-X-Name-Last: Shideler
Author-Name: Yun Wang
Author-X-Name-First: Yun
Author-X-Name-Last: Wang
Title: Factor substitution and labor market friction in the United States: 1948&#x2013;2010
Abstract: 
 We re-estimate the capital-labor elasticity of substitution and the biased factor-augmenting technological progress using a system approach for the aggregate U.S. economy from 1948 to 2010. Due to (i) the significant impacts of labor market dynamics on economic growth and (ii) the fundamental tension between the short-run data that are available and the long-run parameter that is required in the estimation process, we incorporate labor market friction into a supply-side system to re-estimate these important growth parameters and to explore their sensitivity to the incorporation of labor market friction. Our estimation obtains a significantly smaller-than-unity elasticity of substitution. This result is consistent with labor input measured along the extensive and intensive margin, and in both competitive and imperfect labor markets. Technological progress tends to be purely labor-augmenting, with the average growth rate around 2% per year. These findings are robust to alternatively constructed data sets and different estimation strategies.
Journal: Applied Economics
Pages: 1828-1840
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529397
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529397
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1828-1840




Template-Type: ReDIF-Article 1.0
Author-Name: Temesgen Kifle
Author-X-Name-First: Temesgen
Author-X-Name-Last: Kifle
Author-Name: Parvinder Kler
Author-X-Name-First: Parvinder
Author-X-Name-Last: Kler
Author-Name: Christopher M. Fleming
Author-X-Name-First: Christopher M.
Author-X-Name-Last: Fleming
Title: The assimilation of Australian immigrants: does occupation matter?
Abstract: 
 This paper utilises the occupational attainment approach to investigate immigrant labour market assimilation, complementing other assimilation approaches such as employability, earnings, skills-match and job satisfaction. Our results show that all immigrant groups suffer from initial occupational attainment disadvantage. Worryingly, no &#x2018;catch-up&#x2019; over time is evident &#x2013; even when disaggregated to reflect different cultures and backgrounds. Nor is there much evidence that the occupational status of younger arrivals matches those of Australian born residents, despite being immersed in local mores and institutions while undertaking schooling in Australia. Newer cohorts of immigrants (those who arrived between 2000 and 2014) are also more prone to suffering an occupational penalty. We recommend policymakers subsidise bridging courses to aid recognition of overseas-obtained qualifications and encourage immigrants to obtain local qualifications that can complement their overseas-obtained work experience. This will increase their &#x2018;Australian-ready&#x2019; skill-set and occupational attainment in their new host country.
Journal: Applied Economics
Pages: 1841-1854
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529398
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529398
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1841-1854




Template-Type: ReDIF-Article 1.0
Author-Name: Khalid M. Kisswani
Author-X-Name-First: Khalid M.
Author-X-Name-Last: Kisswani
Author-Name: Arezou Harraf
Author-X-Name-First: Arezou
Author-X-Name-Last: Harraf
Author-Name: Amjad M. Kisswani
Author-X-Name-First: Amjad M.
Author-X-Name-Last: Kisswani
Title: Revisiting the environmental kuznets curve hypothesis: evidence from the ASEAN-5 countries with structural breaks
Abstract: 
 This paper tests if the Environmental Kuznets Curve (EKC) hypothesis exists for ASEAN-5 countries in an annual sample data that covers 1971&#x2013;2013, by utilizing Auto Regressive Distributed Lag (ARDL) methodology. The empirical findings give support for the EKC hypothesis for Thailand only, after considering the structural breaks. Furthermore, the paper tests the EKC hypothesis for a panel data of the ASEAN-5 by adopting the Pooled Mean Group (PMG) methodology. The results show that the long-run estimates provide no evidence for the EKC hypothesis. Finally, the paper examines the causality between the CO2 emissions and GDP. For individual countries, bidirectional causality was found in the case of Thailand and Malaysia, plus unidirectional causality running from GDP and squared GDP to CO2 emissions was found for Indonesia, but a unidirectional causality running from CO2 emissions to GDP and squared GDP was found for the Philippines, however, no causality effect was found for Singapore. Furthermore, the pairwise Dumitrescu and Hurlin Panel Causality test show a bidirectional effect between CO2 emissions and both GDP in addition to squared GDP.
Journal: Applied Economics
Pages: 1855-1868
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529399
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529399
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1855-1868




Template-Type: ReDIF-Article 1.0
Author-Name: Mahir Binici
Author-X-Name-First: Mahir
Author-X-Name-Last: Binici
Author-Name: Hakan Kara
Author-X-Name-First: Hakan
Author-X-Name-Last: Kara
Author-Name: P&#x131;nar &#xD6;zl&#xFC;
Author-X-Name-First: P&#x131;nar
Author-X-Name-Last: &#xD6;zl&#xFC;
Title: Monetary transmission with multiple policy rates: evidence from Turkey
Abstract: 
 Quantitative easing policies have led to persistent divergence between officially announced policy rates and short-term money market rates in many economies, making it challenging to assess the stance of monetary policy in the aftermath of the global financial crisis. Lack of data variation in short-term interest rates across time dimension has made it difficult to identify the monetary transmission mechanisms. In order to shed some light on this topic, we make advantage of a specific period from Turkey during which the central bank deliberately allowed the policy rates to diverge frequently from the interbank rates due to capital flow management purposes. Using bank-level flow data from this episode, we investigate the relationship between various short-term interest rate measures and bank loan/deposit rates through panel estimation methods. Our findings suggest that interbank rates are more relevant than central bank&#x2019;s officially announced rates for the transmission of monetary policy when the two diverge from each other persistently. Interbank rates particularly play a key role in the pricing of loans and deposits. These findings provide helpful guidance for evaluating the monetary stance under unconventional policies.
Journal: Applied Economics
Pages: 1869-1893
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529400
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529400
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1869-1893




Template-Type: ReDIF-Article 1.0
Author-Name: Moiz Bhai
Author-X-Name-First: Moiz
Author-X-Name-Last: Bhai
Author-Name: Irina Horoi
Author-X-Name-First: Irina
Author-X-Name-Last: Horoi
Title: Teacher characteristics and academic achievement
Abstract: 
 Identifying the impact of teacher characteristics on academic achievement has been a salient and reoccurring topic in education. We employ a twin-by-year identification strategy using matched teacher-student data from North Carolina to credibly estimate the impact of teacher characteristics such as experience, certification, and advanced degrees on academic achievement in math and reading. By using within-family variation the estimates from our model improve upon on earlier work by for time varying unobservable family shocks to non-schooling inputs. Our findings reveal that teacher experience and National Board certification have positive and significant effects on achievement in reading and math; however, we find inconclusive effects for advanced degrees. Notably, we show that teacher experience has the largest effects on student achievement, but our effects are smaller than the standard estimates in the literature. Overall, our estimates provide lower upper bounds for these key teacher characteristics.
Journal: Applied Economics
Pages: 4781-4799
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597963
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597963
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4781-4799




Template-Type: ReDIF-Article 1.0
Author-Name: Thi Mai Lan Nguyen
Author-X-Name-First: Thi Mai Lan
Author-X-Name-Last: Nguyen
Author-Name: Elissaios Papyrakis
Author-X-Name-First: Elissaios
Author-X-Name-Last: Papyrakis
Author-Name: Peter A.G Van Bergeijk
Author-X-Name-First: Peter A.G
Author-X-Name-Last: Van Bergeijk
Title: Assessing the price and output effects of monetary policy in Vietnam: evidence from a VAR analysis
Abstract: 
 Using monthly data, we perform a vector-autoregressive analysis to measure the effects of monetary policy on the Vietnamese economy. We concentrate our attention on the period following the introduction of the Law on Central Bank in January 1998 (which brought the national monetary policy and its objectives in line with international practices). Contrary to previous studies on Vietnam, we find evidence suggesting that monetary policy (through the manipulation of interest rates) is an effective policy tool in stabilizing prices. However, credit growth tends to induce inflationary pressures. In addition, we find that an expansion of broad money supply leads to an increase in industrial production.
Journal: Applied Economics
Pages: 4800-4819
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602708
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602708
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4800-4819




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Nahvi
Author-X-Name-First: Ali
Author-X-Name-Last: Nahvi
Author-Name: Yang Zhang
Author-X-Name-First: Yang
Author-X-Name-Last: Zhang
Author-Name: Ali Arabzadeh
Author-X-Name-First: Ali
Author-X-Name-Last: Arabzadeh
Author-Name: Sharif Y. Gushgari
Author-X-Name-First: Sharif Y.
Author-X-Name-Last: Gushgari
Author-Name: Halil Ceylan
Author-X-Name-First: Halil
Author-X-Name-Last: Ceylan
Author-Name: Charles T. Jahren
Author-X-Name-First: Charles T.
Author-X-Name-Last: Jahren
Author-Name: Douglas D. Gransberg
Author-X-Name-First: Douglas D.
Author-X-Name-Last: Gransberg
Author-Name: Sunghwan Kim
Author-X-Name-First: Sunghwan
Author-X-Name-Last: Kim
Title: Economics of upgrading gravel roads to Otta seal surface
Abstract: 
 Maintenance of low volume roads especially gravel roads is costly, and millions of funding annually are spent for aggregate replacement alone. Otta seal, compared to other bituminous surface treatments (BSTs) for low volume roads that require high-quality materials and specialized expertise, can be constructed using cheaper local aggregates and accessible equipment. However, only three states have reported Otta seal constructions and performance in the US. In this study, an economic analysis was conducted to compare the cost of maintaining a gravel road to the cost of upgrading an existing gravel road to a double Otta seal surface. This analysis was conducted at three levels: deterministic life-cycle cost analysis (LCCA), a stochastic Monte Carlo simulation-based LCCA, and a traffic based economic analysis. A generic one-mile rural road in Midwest was considered as a case study location. Although, according to the analysis conducted in this paper, an upgrade to Otta seal investment might be justified by maintenance savings, resorting to only such justification cannot warrant investment in most cases. The upgrade from gravel road to Otta seal, or any other BSTs, might be justified in terms of enhancing safety for road users and also encouraging economic development beneficial to local areas.
Journal: Applied Economics
Pages: 4820-4832
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602712
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602712
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4820-4832




Template-Type: ReDIF-Article 1.0
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Xinmin Zhang
Author-X-Name-First: Xinmin
Author-X-Name-Last: Zhang
Title: How time horizons and arbitrage cost influence the turnover premium?
Abstract: 
 There are multiple theories for the causal relation between stock turnover and expected return. The risk theory argues that stocks with high turnover generally have high information uncertainty, and thus high subsequent returns are required to compensate for the increased risk. By contrast, the theory of heterogeneous beliefs considers that high-turnover stocks have high speculative values and tend to be overpriced. We find that the information contained in stock turnover is multidimensional and controlling time horizons and arbitrage cost contributes to the reconciliation of the theories of risk compensation and heterogeneous beliefs. Our result shows that expected return is positively correlated with short-term turnover, and negatively correlated with long-term one. The premium on short-term turnover is consistent with the explanations based on transaction cost and liquidity risk. The premium on long-term turnover is much more pronounced among stocks with high arbitrage cost and can be largely explained by the mispricing theory and heterogeneous beliefs.
Journal: Applied Economics
Pages: 4833-4848
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602713
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602713
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4833-4848




Template-Type: ReDIF-Article 1.0
Author-Name: Jying-Nan Wang
Author-X-Name-First: Jying-Nan
Author-X-Name-Last: Wang
Author-Name: Hung-Chun Liu
Author-X-Name-First: Hung-Chun
Author-X-Name-Last: Liu
Author-Name: Shu-Mei Chiang
Author-X-Name-First: Shu-Mei
Author-X-Name-Last: Chiang
Author-Name: Yuan-Teng Hsu
Author-X-Name-First: Yuan-Teng
Author-X-Name-Last: Hsu
Title: On the predictive power of ARJI volatility forecasts for Bitcoin
Abstract: 
 Motivated by the recent literature on cryptocurrency volatility dynamics, this paper adopts the ARJI, GARCH, EGARCH, and CGARCH models to explore their capabilities to make out-of-sample volatility forecasts for Bitcoin returns over a daily horizon from 2013 to 2018. The empirical results indicate that the ARJI jump model can cope with the extreme price movements of Bitcoin, showing comparatively superior in-sample goodness-of-fit, as well as out-of-sample predictive performance. However, due to the excessive volatility swings on the cryptocurrency market, the realized volatility of Bitcoin prices is only marginally explained by the GARCH genre of employed models.
Journal: Applied Economics
Pages: 4849-4855
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602714
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602714
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4849-4855




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Khamis Hamed Al-Yahyaee
Author-X-Name-First: Khamis Hamed
Author-X-Name-Last: Al-Yahyaee
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Walid Mensi
Author-X-Name-First: Walid
Author-X-Name-Last: Mensi
Title: Tail dependence risk exposure and diversification potential of Islamic and conventional banks
Abstract: 
 This paper undertakes a rolling window comparative analysis of risks for portfolios consisting of GCC Islamic and conventional bank indices. We draw our empirical results by employing canonical, drawable and regular vine copula models, as well as by implementing a portfolio optimization method with a conditional Value-at-Risk constraint. We find evidence of higher riskiness in the group of Islamic banks relative to the group of conventional banks across each of the financial rolling window scenarios under consideration. Specifically, a greater negative (nonlinear) tail asymmetric dependence is observed in the pairs of Islamic banks’ relationships. The results also show that the optimal portfolio model supports a clear preference towards the group of conventional banks in regard to risk minimization and diversification benefits.
Journal: Applied Economics
Pages: 4856-4869
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602716
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602716
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4856-4869




Template-Type: ReDIF-Article 1.0
Author-Name: Huaigang Long
Author-X-Name-First: Huaigang
Author-X-Name-Last: Long
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Yuexiang Jiang
Author-X-Name-First: Yuexiang
Author-X-Name-Last: Jiang
Title: Beware of the crash risk: Tail beta and the cross-section of stock returns in China
Abstract: 
 We investigate the pricing of systematic tail risk measured by tail beta in the Chinese equity market. Using an array of tests, we examine the performance of more than 3,300 stocks for the years 1999 through 2018. Contrary to evidence from developed markets, we demonstrate a strong negative relationship between the tail beta and future returns. The effect is robust to many considerations and cannot be explained by established pricing factors or alternative risk or illiquidity measures. We link our findings to specific characteristics of the Chinese stock market.
Journal: Applied Economics
Pages: 4870-4881
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602717
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602717
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4870-4881




Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Lin
Author-X-Name-First: Qiang
Author-X-Name-Last: Lin
Author-Name: Tao Zhang
Author-X-Name-First: Tao
Author-X-Name-Last: Zhang
Title: Trade credit in economic fluctuations and its impact on corporate performance: a panel data analysis from China
Abstract: 
 Trade credit is an important auxiliary measure to complete transactions in supply chains, and it is also an important source of short-term financing for companies. This paper uses panel data for Chinese listed companies from 2002 to 2016 to study the impact of Tobin’s Q and bargaining power on trade credit under different economic conditions, and we ultimately study how trade credit affects companies’ performance during economic fluctuations. We find that companies with higher Tobin’s Q values tend to reduce the use of trade credit demand, which increases during the economic expansion period and weakens during the economic downturn. Second, companies with lower bargaining power tend to increase their use of trade credit expansion as a competitive tool; however, this effect will weaken during the economic expansion period and will increase during the economic downturn. We also find that the amounts of trade credit demand and expansion are negatively correlated with corporate performance and that this effect weakens during the economic expansion period and increases during the economic downturn. The cycle of trade credit expansion is positively related to corporate performance. This relationship weakens during the economic expansion and strengthens during the economic downturn.
Journal: Applied Economics
Pages: 1-18
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1621982
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1621982
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:1-18




Template-Type: ReDIF-Article 1.0
Author-Name: Fida Karam
Author-X-Name-First: Fida
Author-X-Name-Last: Karam
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: A new dawn for MENA firms: service trade liberalization for more competitive exports
Abstract: 
 While micro-level empirical evidence has emerged to highlight the positive effect of services deregulation on the productivity and exports of manufacturing firms in developing countries, the MENA region has been neglected in the literature. The current paper fills the gap by exploring the effect of service protection on the extensive and intensive trade margins of manufacturing and services firms in selected MENA countries for 2013. The service protection variable is constructed using two different measures: the service trade restrictiveness index and the tariff equivalent of services, weighted by the input-output technical coefficient of service sectors. Our results show that service protection is a fixed export cost, exerting a negative and significant effect on the extensive margin, without having a significant effect on the intensive margin of the firm. We also find that the burden of service barriers falls on small firms that struggle to enter international markets, and on firms operating in high value-added sectors such as ‘motor vehicles’.
Journal: Applied Economics
Pages: 19-35
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1624921
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624921
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:19-35




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Beatriz Hernández-Lara
Author-X-Name-First: Ana Beatriz
Author-X-Name-Last: Hernández-Lara
Author-Name: Juan Pablo Gonzales-Bustos
Author-X-Name-First: Juan Pablo
Author-X-Name-Last: Gonzales-Bustos
Title: The influence of family businesses and women directors on innovation
Abstract: 
 This work seeks to contribute to the debate about whether or not family businesses are more innovative than other kind of companies, and explore the specific effects women on boards have on innovation, comparing family and non-family businesses. Data collected from Spanish listed companies belonging to innovative sectors between 2003 and 2017 confirm that being a family business impacts positively on the number of registered patents and the proportion of women on boards exert a positive influence on R&D and patents. Moreover, the proportion of women on boards influences innovation in a different way when family and non-family businesses are compared, and depending on whether female directors belong or not to the family of control. Therefore, the results obtained suggest some relevant recommendations for research and practitioners, providing new insights into the debate on the benefits of family companies for innovation and of gender diversity of their boards.
Journal: Applied Economics
Pages: 36-51
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1638496
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638496
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:36-51




Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Brenner
Author-X-Name-First: Steffen
Author-X-Name-Last: Brenner
Author-Name: Sezen Aksin Sivrikaya
Author-X-Name-First: Sezen
Author-X-Name-Last: Aksin Sivrikaya
Author-Name: Joachim Schwalbach
Author-X-Name-First: Joachim
Author-X-Name-Last: Schwalbach
Title: Who is on LinkedIn? Self-selection into professional online networks
Abstract: 
 We analyze a large data set of fully employed individuals gathered through incentive-compatible surveys to study who joins professional social network sites (SNS) such as LinkedIn. We test the conflicting predictions that a) individuals who are unsatisfied with their career status adversely select into professional SNS in order to reap marginal online network benefits vs. b) high status individuals positively select into these networks because they are more likely to receive invitations to join. Our tests support b) and reject a). Similar estimations for private SNS (e.g., Facebook) reveal that the observed effects are specific to professional SNS and hence not driven by unobserved differences in social capital or the affinity to use social media. We also detect that environments conducive of professional social interactions increase the likelihood to use professional SNS. Controlling for sample selection bias does not qualitatively change the results.
Journal: Applied Economics
Pages: 52-67
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1638497
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638497
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:52-67




Template-Type: ReDIF-Article 1.0
Author-Name: Vaibhav Lalwani
Author-X-Name-First: Vaibhav
Author-X-Name-Last: Lalwani
Author-Name: Madhumita Chakraborty
Author-X-Name-First: Madhumita
Author-X-Name-Last: Chakraborty
Title: Aggregate earnings and gross domestic product: International evidence
Abstract: 
 Recent studies in macro accounting suggest that changes in aggregate accounting earnings can predict quarterly GDP growth in the USA. Our objective in this study is to test the robustness of the association between aggregate earnings and real GDP growth across multiple countries and for different definitions of aggregate earnings. We test whether aggregate earnings changes predict future economic growth in eight countries – Australia, Canada, China, India, Japan, South Korea, the UK, and the USA. We find positive evidence regarding the generalisability of the aggregate earnings – real GDP relation in an international context. In additional tests, we find that economic forecasters appear to underreact to aggregate earnings information. Our results show that aggregate earnings lead economic growth and forecasts of real GDP growth can be improved by incorporating aggregate earnings information. Further, we also test if negative earnings changes contain more information than positive earnings changes and find only modest evidence in favour of this hypothesis. The results are robust to alternative statistical methodology and the removal of the USA data from the sample.
Journal: Applied Economics
Pages: 68-84
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1640859
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640859
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:68-84




Template-Type: ReDIF-Article 1.0
Author-Name: Gaoxiu Qiao
Author-X-Name-First: Gaoxiu
Author-X-Name-Last: Qiao
Author-Name: Yuxin Teng
Author-X-Name-First: Yuxin
Author-X-Name-Last: Teng
Author-Name: Yanyan Xu
Author-X-Name-First: Yanyan
Author-X-Name-Last: Xu
Author-Name: Lu Wang
Author-X-Name-First: Lu
Author-X-Name-Last: Wang
Title: The cross-market dynamic effects of liquidity on volatility: evidence from Chinese stock index and futures markets
Abstract: 
 This article investigates the cross-market asymmetric dynamic effects of liquidity on realized volatility and its intersection with jump volatility between Chinese stock index and futures market. The influence of index liquidity on futures market volatility is negative significantly after controlling for the long memory feature of realized volatility, and becomes much stronger for the after-crisis period. Liquidity of the futures market has a relative weak positive impact on stock volatility, and becomes insignificant after crisis. Our study reveals different influence mechanisms from the commonly known information transmission that new information is reflected in futures prices and volatility more quickly. The cross-market dynamic effects are time-varying and not influenced after controlling for jump volatility. Especially, index liquidity impacts positive jumps of both markets, while there is no impact of futures liquidity to index jump volatility.
Journal: Applied Economics
Pages: 85-99
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1640861
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640861
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:85-99




Template-Type: ReDIF-Article 1.0
Author-Name: Gideon Danso-Abbeam
Author-X-Name-First: Gideon
Author-X-Name-Last: Danso-Abbeam
Author-Name: Lloyd J. S. Baiyegunhi
Author-X-Name-First: Lloyd J. S.
Author-X-Name-Last: Baiyegunhi
Title: Technical efficiency and technology gap in Ghana’s cocoa industry: accounting for farm heterogeneity
Abstract: 
 This study employs a stochastic metafrontier framework to examine the performance of smallholder cocoa farmers using cross-country survey from Ghana. The results indicate that the output of farmers from all the regions lags behind their potential with the mean technical efficiency of 0.65, 0.76, 0.60 and 0.74 for Western, Brong-Ahafo, Ashanti and Eastern regions, respectively. Each region faces a technology gap when their performances are compared with the technology available in the industry as a whole. The study identified sources of farmers’ technical inefficiency emanating from a combined effects of socioeconomic and farm-specific factors although effects of some variables were not significant. However, farmers in all the regions have the potential to overcome technological constraints and achieve the highest attainable productivity levels. It is, therefore, important that Ghana cocoa board strengthened its strategies to the latter to improve farmers’ technical and managerial skills on the efficient use of resources.
Journal: Applied Economics
Pages: 100-112
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644439
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644439
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:100-112




Template-Type: ReDIF-Article 1.0
Author-Name: Youssouf Kiendrebeogo
Author-X-Name-First: Youssouf
Author-X-Name-Last: Kiendrebeogo
Author-Name: Alexandru Minea
Author-X-Name-First: Alexandru
Author-X-Name-Last: Minea
Title: Financial development and poverty: evidence from the CFA Franc Zone
Abstract: 
 The financial liberalization in the 1980s and early 1990s led the CFA Franc Zone countries to deepen reforms in their financial systems. These reforms fostered financial development, which in turn may have reduced income poverty, as emphasized by several theoretical arguments in the literature. This study aims at estimating the contribution of financial development to poverty alleviation in the CFA Franc Zone. Results based on a panel of CFA Franc Zone countries show that financial development is associated with a drop in the proportion of poor population. Next, financial development reduces the extent to which the income of individuals falls below the poverty line. Moreover, in some cases, the effect of financial development on poverty may be subject to nonlinearities. Finally, financial instability or unstable financial development leading to crises may mitigate the favourable effect of financial development on poverty reduction. These findings are robust to the use of alternative measures of financial development and hold after controlling for a potential simultaneity and a small sample biases.
Journal: Applied Economics
Pages: 5421-5436
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1176114
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176114
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5421-5436




Template-Type: ReDIF-Article 1.0
Author-Name: Sekyung Oh
Author-X-Name-First: Sekyung
Author-X-Name-Last: Oh
Author-Name: Woo Sung Kim
Author-X-Name-First: Woo Sung
Author-X-Name-Last: Kim
Title: Growth opportunities and trade credit: evidence from Chinese listed firms
Abstract: 
 Private firms in China have led the explosive growth of the country’s economy, but with restricted or no access to formal financing. It is puzzling that these firms use relatively less trade credit than their counterparts in developed countries. We argue that firms with more growth opportunities should rely mainly on internal financing owing to high asymmetric information, especially in a financial market environment biased towards state-owned enterprises (SOEs) such as China. To explore growth opportunities, these firms may reduce their level of trade credit in the trade-off they face in deciding where to invest. Using panel data of Chinese non-financial listed firms for the period 2003–2013, we find that the relationship between growth opportunities and trade credit (both accounts receivable and payable) is significantly negative and is more pronounced in private firms than in SOEs. Furthermore, we also find that subsequent to the new receivable pledge policy being introduced, Chinese firms with more growth opportunities have higher accounts receivable, but similar levels of accounts payable.
Journal: Applied Economics
Pages: 5437-5447
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178846
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178846
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5437-5447




Template-Type: ReDIF-Article 1.0
Author-Name: Yangyan Shi
Author-X-Name-First: Yangyan
Author-X-Name-Last: Shi
Author-Name: Tiru Arthanari
Author-X-Name-First: Tiru
Author-X-Name-Last: Arthanari
Author-Name: Lincoln C. Wood
Author-X-Name-First: Lincoln C.
Author-X-Name-Last: Wood
Title: An empirical study of third-party purchase: New Zealand users’ perspective
Abstract: 
 This article investigates the potential for third-party purchase (3PP) services offered by third-party logistics (3PL) providers, from the perspective of 3PL users, based on transaction cost analysis. We conducted a survey of New Zealand 3PL users and received 163 usable responses. Structural equation modelling was used to test the conceptual model. We found that 3PL users are more likely to adopt 3PP service when there is greater uncertainty. Asset specificity, frequency and transaction size do not have a significant relationship with 3PP service adoption. However, 3PP service is significantly related to the value-to-client and benefit-to-3PL provider. This study is pioneering research on 3PP service as a value-added service offered by 3PL providers from the perspective of 3PL users. The findings suggest that offering 3PP service will provide mutual benefits and value for both 3PL users and their 3PL providers.
Journal: Applied Economics
Pages: 5448-5461
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178847
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178847
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5448-5461




Template-Type: ReDIF-Article 1.0
Author-Name: Min Bai
Author-X-Name-First: Min
Author-X-Name-Last: Bai
Author-Name: Xiao-Ming Li
Author-X-Name-First: Xiao-Ming
Author-X-Name-Last: Li
Author-Name: Yafeng Qin
Author-X-Name-First: Yafeng
Author-X-Name-Last: Qin
Title: Short-selling constraints and stock-valuation pattern: a regime–event analysis
Abstract: 
 Employing a novel approach of integrating regime analysis with event analysis, we examine the overall valuation pattern of stocks that traverse the short-sale-ban and the no-ban regime, employing data from the Hong Kong market. Switching from the ban to the no-ban regime, stocks initially undergo net cumulative undervaluation and then revert to fundamental valuation. Switching from the no-ban to the ban regime, stocks initially experience net cumulative excessive overvaluation and then revert to permanent overvaluation. The amount of net cumulative undervaluation is greater than the amount of net cumulative excessive overvaluation. This documented overall pattern offers a broad perspective on short-sale constraints and stock valuation.
Journal: Applied Economics
Pages: 5462-5484
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178848
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178848
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5462-5484




Template-Type: ReDIF-Article 1.0
Author-Name: Florian Szücs
Author-X-Name-First: Florian
Author-X-Name-Last: Szücs
Title: The triggers and clustering properties of merger waves
Abstract: 
 This article studies the triggers and the agglomeration of mergers and acquisitions (M&amp;A) activity within clusters constituted by time, market and industry. Based on almost 500,000 individual transactions, we find that industry factors play a significant role in triggering activity and that M&amp;A agglomerates strongly across related industries. While clustering in time turns out to be insignificant, stock market effects can be either an attracting or a repelling force, depending on the type of deal examined. This supports the view that merger waves are largely driven by industry shocks.
Journal: Applied Economics
Pages: 5485-5496
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178849
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178849
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5485-5496




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Giaccaria
Author-X-Name-First: Sergio
Author-X-Name-Last: Giaccaria
Author-Name: Vito Frontuto
Author-X-Name-First: Vito
Author-X-Name-Last: Frontuto
Author-Name: Silvana Dalmazzone
Author-X-Name-First: Silvana
Author-X-Name-Last: Dalmazzone
Title: Valuing externalities from energy infrastructures through stated preferences: a geographically stratified sampling approach
Abstract: 
 The externalities produced by high-voltage transmission lines are multidimensional, may strongly depend on the local context, and are thus difficult to capture through standard environmental valuation exercises. We experiment a GIS approach to design a geographically stratified contingent valuation sample of the population resident in infrastructure corridors in a whole region. We estimate, by means of a binary choice logit model, the perceived marginal damage from impacts of power lines on human health, the landscape and the environment. Specific treatment is given to qualitatively different forms of impact, namely real estate depreciation versus diffused perception of damage, arising at different distances from the lines. The set of GIS-based variables (proximity to power lines, presence of other infrastructure, endowment of natural and built heritage and other local context variables) prove to be significant predictors in the utility function of resident households. Finally, we compute simulated values that combine information on individual’s willingness to pay, population density and the dimension of the considered corridor around the infrastructure, so as to generalize the outcomes of case-specific studies for use in policy choices such as infrastructure localization, undergrounding and negotiation of compensations.
Journal: Applied Economics
Pages: 5497-5512
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178850
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178850
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5497-5512




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: Soccer transfers, team efficiency and the sports cycle in the most valued European soccer leagues – have European soccer teams been efficient in trading players?
Abstract: 
 The sale of soccer players is a serious issue for the sustainability of professional teams. This article discusses the efficiency of the values that 183 European soccer teams have received for the sales of their players since 2007. We estimated stochastic frontiers for these soccer teams using stochastic frontier analysis. We found that teams with higher numbers of titles, with huge past acquisitions of players, and achieving good rankings in the previous season tend to receive more transfer inflows. The efficiency of these inflows can be significantly influenced if the team exhibits a long sports history or if the team participates in the Champions League or in the Europa League.
Journal: Applied Economics
Pages: 5513-5524
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178851
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178851
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5513-5524




Template-Type: ReDIF-Article 1.0
Author-Name: Michiel Bijlsma
Author-X-Name-First: Michiel
Author-X-Name-Last: Bijlsma
Author-Name: Clemens Kool
Author-X-Name-First: Clemens
Author-X-Name-Last: Kool
Author-Name: Marielle Non
Author-X-Name-First: Marielle
Author-X-Name-Last: Non
Title: The effect of financial development on economic growth: a meta-analysis
Abstract: 
 In this article, we contribute to the current debate on the sign and size of the finance–growth relation. To this purpose, we use a meta-analysis with 551 estimates from 68 empirical studies that take private credit to GDP as a measure for financial development. We distinguish between linear and logarithmic specifications. First, we find evidence of significantly positive publication bias in both the linear and log-linear specifications. It suggests the literature has exaggerated the size of the finance–growth effect in the past. Second, we find suggestive evidence that the logarithmic specification is superior to the linear specification. In the logarithmic specification when accounting for publication bias, a 10% increase in credit to the private sector increases economic growth with 0.09 percentage points. For the linear estimates, no significant effect of credit to the private sector on economic growth is found on average. Overall, the evidence points to a positive but decreasing effect of financial development on growth and supports the ‘too much’ finance hypothesis.
Journal: Applied Economics
Pages: 6128-6148
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489503
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489503
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6128-6148




Template-Type: ReDIF-Article 1.0
Author-Name: Darlington Sabasi
Author-X-Name-First: Darlington
Author-X-Name-Last: Sabasi
Author-Name: C. Richard Shumway
Author-X-Name-First: C. Richard
Author-X-Name-Last: Shumway
Title: Climate change, health care access and regional influence on components of U.S. agricultural productivity
Abstract: 
 This article examines factors driving three components of total factor productivity change (TFPC) in U.S. agriculture – technical change (TC), technical efficiency change (TEC), and scale and mix efficiency change (SMEC). We also examine TFPC and contrast implications derived from the component models with those from a directly estimated TFPC model. Our results show that TC and SMEC are both significantly impacted by innovation through public research and improved human capital through education and health care access. TEC and SMEC are significantly affected by farm size, and the latter is significantly affected by public policy. The ratio of family-to-total labour, terms of trade and precipitation have significant impacts on all three components, but extension has no significant impact on any component. Climate change variables are the most impactful factors on each component as well as on TFPC. While the impact of climate change is heterogeneous across regions and components, its estimated historical impact is most often positive. Nearly all TFPC elasticities estimated directly are qualitatively the same as those calculated from the component models and quantitatively similar.
Journal: Applied Economics
Pages: 6149-6164
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489504
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489504
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6149-6164




Template-Type: ReDIF-Article 1.0
Author-Name: Alan T. Wang
Author-X-Name-First: Alan T.
Author-X-Name-Last: Wang
Title: A reexamination on the effect of bank competition on bank non-performing loans
Abstract: 
 This article examines whether competition in the deposit and loan markets results in a more stable or fragile banking industry. Following the assumption that deposit and loan competitions are not separable, a simple equilibrium model is developed. Then, using the aggregate time-series data of Federal Deposit Insurance Corporation (FDIC)-insured financial institutions, we estimate the generalized VAR model of deposit rate (DR), interest margin between the loan and DRs, and non-performing loan ratio. Our results support the competition–fragility hypothesis.
Journal: Applied Economics
Pages: 6165-6173
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489505
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489505
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6165-6173




Template-Type: ReDIF-Article 1.0
Author-Name: Grzegorz Wesoƚowski
Author-X-Name-First: Grzegorz
Author-X-Name-Last: Wesoƚowski
Title: Do long-term interest rates drive GDP and inflation in small open economies? Evidence from Poland
Abstract: 
 This article investigates the impact of long-term interest rates on macroeconomic variables in a small open economy. It shows that the time-varying term premium stabilizes GDP without affecting significantly inflation volatility in Poland – a typical open economy with flexible exchange rate. This conclusion is drawn from an estimated dynamic stochastic general equilibrium model in which segmented asset markets and imperfect asset substitutability give rise to the time-varying term premium in the long-term interest rate. Furthermore, the impulse response analysis of the model reveals that the term premium stabilizes GDP when the small economy is hit by shocks that are absent in closed economy models (country risk premium and export preference) which points to the different impact of the term premium on relatively close (large) and open (small) economies.
Journal: Applied Economics
Pages: 6174-6192
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489507
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489507
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6174-6192




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Royal
Author-X-Name-First: Andrew
Author-X-Name-Last: Royal
Author-Name: Galib Rustamov
Author-X-Name-First: Galib
Author-X-Name-Last: Rustamov
Title: Do small pecuniary incentives motivate residential peak energy reductions? Experimental evidence
Abstract: 
 This article evaluates demand-side interventions aimed at reducing residential consumption during the peak energy periods. The interventions were applied to a sample of high-income households and included a set of text message reminders advising participants to reduce electricity use during peak hours. One group of participants received accompanying intra-day increases in peak-hour kWh rates, while another group of participants did not receive any price incentives. We find that intra-day price increases, though small in absolute magnitude, produced significant reductions in peak energy use. Reductions in use, as compared to a control group, were significantly higher among the pricing group compared to the group only receiving text messages, suggesting that pricing played a central role in influencing behaviour. Our results contribute to ongoing policy discussion about the effect of dynamic pricing on consumer energy demand.
Journal: Applied Economics
Pages: 6193-6202
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489508
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489508
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6193-6202




Template-Type: ReDIF-Article 1.0
Author-Name: Steven P. Cassou
Author-X-Name-First: Steven P.
Author-X-Name-Last: Cassou
Author-Name: C. Patrick Scott
Author-X-Name-First: C. Patrick
Author-X-Name-Last: Scott
Author-Name: Jesús Vázquez
Author-X-Name-First: Jesús
Author-X-Name-Last: Vázquez
Title: Optimal monetary policy revisited: does considering US real-time data change things?
Abstract: 
 The primary goal of this article is to investigate whether properly modelling real-time data and optimal real-time decision-making of a monetary planner provides new insights into monetary policy behaviour and outcomes. This article extends a variant of the asymmetric preference model suggested by Ruge-Murcia to investigate the use of real-time data available to policymakers when making their decisions and revised data which more accurately measure economic performance, but is only available much later. In our extended model, the central banker targets a weighted average of revised and real-time inflation together with a weighted average of revised and real-time output. Moreover, we allow for an asymmetric central bank response to real-time data depending on whether the unemployment rate is high or low. Our model identifies several new potential sources of inflation bias due to data revisions. Our empirical results suggest that the Federal Reserve Bank focuses on targeting revised inflation during low unemployment periods, but it weighs heavily real-time inflation during high unemployment periods. The inflation bias due to data revisions is comparable in magnitude to the bias from asymmetric central banker preferences with the bias being somewhat larger during high unemployment.
Journal: Applied Economics
Pages: 6203-6219
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489511
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489511
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6203-6219




Template-Type: ReDIF-Article 1.0
Author-Name: Robert G. Snigaroff
Author-X-Name-First: Robert G.
Author-X-Name-Last: Snigaroff
Author-Name: David Wroblewski
Author-X-Name-First: David
Author-X-Name-Last: Wroblewski
Title: An earnings, liquidity, and market model
Abstract: 
 We combine the market with earnings, liquidity and their respective growth, with motivation via a simple pricing equation, to model the cross-section with three, four and five factors. As first-order variables in widespread investor use for over a hundred years, earnings and liquidity have ready connection to investor preferences. They obtain as good a cross-sectional description of security prices as other factor models without redundancy. We weight portfolios on volume, relying on a direct SDF representation of investor’s preference for liquidity, demonstrating its additional dimension. Recent research arguing for the demise of liquidity is premature; indeed, its importance has grown.
Journal: Applied Economics
Pages: 6220-6248
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1495826
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495826
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6220-6248




Template-Type: ReDIF-Article 1.0
Author-Name: Chuanhua Wei
Author-X-Name-First: Chuanhua
Author-X-Name-Last: Wei
Author-Name: Chao Liu
Author-X-Name-First: Chao
Author-X-Name-Last: Liu
Author-Name: Fengyun Gui
Author-X-Name-First: Fengyun
Author-X-Name-Last: Gui
Title: Geographically weight seemingly unrelated regression (GWSUR): a method for exploring spatio-temporal heterogeneity
Abstract: 
 Geographically weight seemingly unrelated regression is a useful technique to explore the temporal and spatial heterogeneity simultaneously in space-time data analysis. In this article, a local linear-based estimating approach is developed to estimate the unknown coefficient functions. Some simulations are conducted to examine the performance of our proposed method and the results are satisfactory. Finally, a real data example is considered.
Journal: Applied Economics
Pages: 4189-4195
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279266
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279266
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4189-4195




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Jose Perez Villadoniga
Author-X-Name-First: Maria Jose
Author-X-Name-Last: Perez Villadoniga
Author-Name: Ana Rodríguez-Alvarez
Author-X-Name-First: Ana
Author-X-Name-Last: Rodríguez-Alvarez
Title: Analysing wage differentials when workers maximize the return to human capital investment
Abstract: 
 The analysis of the determinants of differences in wages across workers has traditionally relied on the estimation of average earnings functions. In this article, we propose a new theoretical model where it is the workers who decide the amount they wish to invest in human capital, taking into account the costs of acquiring those skills, for the purpose of maximizing earnings. In this model, both human capital and marginal productivity are likely to be influenced by the individual’s (unobserved) characteristics such as ability or motivation, potentially giving rise to endogeneity problems. In this context, the empirical implementation of our theoretical model allows us, under certain assumptions, to obtain consistent estimates even under the assumption of endogeneity. We present an empirical application to the education sector using data from the Spanish Structure of Earnings Survey 2010. Our results show that females and workers in the private education sector face more difficulties in achieving their maximum potential wage.
Journal: Applied Economics
Pages: 4196-4208
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279267
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279267
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4196-4208




Template-Type: ReDIF-Article 1.0
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: How pervasive is the effect of culture on stock market linkages? Evidence across regions and economic cycles
Abstract: 
 We conduct a comprehensive study on the effect of culture on stock market linkages. With data on 25 national stock markets, a quantile regression model is used to estimate the determinants of market linkages using culture variable/s such as language, religion and Hofstede’s cultural dimensions while controlling for distance, economic and legal variables. Further, we test whether these effects hold across regions and if changes are detected during periods of market crisis. We also test if market liquidity, an indicator of market efficiency, diminishes the impact of culture on market linkages. The main conclusion is that culture preferences shape investor choices, which affects integration between stock markets. The equity markets with similar cultural traits tend to increase market linkages; however, we observe differences across regions. Furthermore, liquidity and economic uncertainty fail to have an impact on the significance of culture variable/s as determinants of market linkages.
Journal: Applied Economics
Pages: 4209-4230
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279268
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279268
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4209-4230




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Dreger
Author-X-Name-First: Christian
Author-X-Name-Last: Dreger
Author-Name: Yun Schüler-Zhou
Author-X-Name-First: Yun
Author-X-Name-Last: Schüler-Zhou
Author-Name: Margot Schüller
Author-X-Name-First: Margot
Author-X-Name-Last: Schüller
Title: Determinants of Chinese direct investments in the European Union
Abstract: 
 This article analyses the determinants of Chinese foreign direct investment (FDI) activities in the European Union (EU). Evidence is based on panel Poisson models drawing on two investment monitors at the individual project level. Greenfield investments (GI) and mergers and acquisitions (M&amp;A) are distinguished. The findings indicate that market size and bilateral trade are the main factors for Chinese investment in the EU. In contrast, business-friendly institutions do not foster FDI. Probably, Chinese investors are risk averse, and prefer regions with less competitive markets. The striking difference between GIs and M&amp;As is related to unit labour costs. Higher costs make the host country less attractive for the establishment of new firms, but do not affect the involvement in existing firms. The sectoral dispersion of Chinese FDI in the EU did not change much since the global financial crisis. Most relevant shifts have occurred in research and development (R&amp;D), where low-income EU countries have become increasingly attractive.
Journal: Applied Economics
Pages: 4231-4240
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279269
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279269
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4231-4240




Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Chever
Author-X-Name-First: Lisa
Author-X-Name-Last: Chever
Author-Name: Stéphane Saussier
Author-X-Name-First: Stéphane
Author-X-Name-Last: Saussier
Author-Name: Anne Yvrande-Billon
Author-X-Name-First: Anne
Author-X-Name-Last: Yvrande-Billon
Title: The law of small numbers: investigating the benefits of restricted auctions for public procurement
Abstract: 
 A commonly accepted view in the academic literature is that dispensing with competition may only be beneficial when tendering complex contracts. However, restricted auctions are frequently used among EU member states to procure small contracts. In this article, we investigate this paradox. Using an original data set of 180 contracts used by a local public buyer of social housing between 2006 and 2009, we show that limiting competition may enable economies to be made on transaction costs while the most efficient bidders still come forward, and that abuses such as corruption or favouritism do not result. To our knowledge, this article is the first to shed light on the advantages of using restricted auctions when tendering small simple contracts.
Journal: Applied Economics
Pages: 4241-4260
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279270
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279270
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4241-4260




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Ferda Halicioglu
Author-X-Name-First: Ferda
Author-X-Name-Last: Halicioglu
Author-Name: Sahar Bahmani
Author-X-Name-First: Sahar
Author-X-Name-Last: Bahmani
Title: Do exchange rate changes have symmetric or asymmetric effects on the demand for money in Turkey?
Abstract: 
 As a result of the research conducted by Nobel Laureate Robert Mundell (1963), most studies estimating the demand for money today do include the exchange rate in their specification to account for currency substitution. Previous studies that did this for the Turkish demand for money assumed that exchange rate changes do have symmetric effects on the demand for money in Turkey. In this article, we question this assumption. By using the nonlinear ARDL approach, we show that indeed exchange rate changes do have short-run and long-run asymmetric effects on the M1 demand for money. Introducing nonlinearity also yields a stable money demand.
Journal: Applied Economics
Pages: 4261-4270
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279271
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279271
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4261-4270




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantin A. Kholodilin
Author-X-Name-First: Konstantin A.
Author-X-Name-Last: Kholodilin
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Title: Think national, forecast local: a case study of 71 German urban housing markets
Abstract: 
 In this article, we examine whether the local indicators are able to predict the city-level housing prices and rents better than national indicators. For this purpose, we assess the forecasting ability of 126 indicators and 21 types of forecast combinations using a sample of 71 large German cities. There are several predictors that are especially useful, namely price-to-rent ratios, national-level business confidence, and consumer surveys. We also find that combinations of individual forecasts are among the top forecasting models. On average, the forecast improvements attain about 20%, measured by a reduction in root mean square error, compared to the naive models.
Journal: Applied Economics
Pages: 4271-4297
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279272
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279272
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4271-4297




Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Zheng Li
Author-X-Name-First: Zheng
Author-X-Name-Last: Li
Author-Name: Peng Guo
Author-X-Name-First: Peng
Author-X-Name-Last: Guo
Title: The impact of income, economic openness and interest rates on housing prices in China: evidence from dynamic panel quantile regression
Abstract: 
 The rapid growth of housing prices has attracted the attention of the whole of society in China. This article adopts the dynamic panel quantile regression to investigate the impact of income, economic openness and interest rates on housing prices in China, based on the panel data of 35 major cities from 2002 to 2012. Compared with previous studies, we can more precisely and reasonably discuss the impact of these variables on different levels of housing prices. The empirical results indicate that the impact of independent variables on housing prices is heterogeneous across quantiles. Specifically, the impact of income is positive and significant across quantiles, and the impact becomes greater at the 90th and 95th quantiles. Economic openness has a positive and significant effect at the 5th–80th quantiles, which support the Balassa–Samuelson effect, but it is insignificant at the 90th and 95th quantiles. The impact of interest rates is positive and significant at low quantiles, but the impact is negative and insignificant at high quantiles. Furthermore, we also find that the coefficients of interest rates at various quantiles are smaller. In addition, the population has a significant positive effect across quantiles. Finally, we provide important policy implications.
Journal: Applied Economics
Pages: 4086-4098
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441512
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441512
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4086-4098




Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: John Inekwe
Author-X-Name-First: John
Author-X-Name-Last: Inekwe
Author-Name: Sudharshan Reddy Paramati
Author-X-Name-First: Sudharshan Reddy
Author-X-Name-Last: Paramati
Title: Remittances and financial development: empirical evidence from heterogeneous panel of countries
Abstract: 
 Remittances are the second largest source of external finance after foreign direct investment in the developing economies. In this study, we analyse the role of incoming remittances on financial development for 57 highest remittance recipient economies. A long run equilibrium relationship is established between remittances and three alternative indicators of financial development. Estimates from the dynamic system-generalized method of moments reflect lower elasticity values for developing countries compared to the developed ones. Our findings are robust across countries, and highlight the necessity for strengthening institutional set-ups to increase the inflow of remittances, which will enhance financial development across countries. The role of foreign direct investment is found to be significant in most cases.
Journal: Applied Economics
Pages: 4099-4112
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441513
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441513
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4099-4112




Template-Type: ReDIF-Article 1.0
Author-Name: David A. Walker
Author-X-Name-First: David A.
Author-X-Name-Last: Walker
Title: How they lost the presidency
Abstract: 
 For the second time in this century and the fifth time in US history, the 2016 presidential popular vote winner was not elected president. One day before the election, the author predicted (https://finpolicy.georgetown.edu) Secretary Hillary Clinton would receive between 50.49 and 51.78 percent of the two-party popular vote. She received 51.11 percent. The difference between the popular vote winner and Electoral College outcome inspired the author, ex ante, to develop a state-by-state, cross-section probit model to understand Donald Trump’s Electoral College victory, based on economic, racial and educational characteristics. Trump won the US presidency by winning some of the largest states (Pennsylvania, Michigan and Wisconsin with 17 percent of the necessary electoral votes) by small margins, particularly states with modest per capita incomes and economic growth, and losing the minority vote by less than expected.
Journal: Applied Economics
Pages: 4113-4121
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441514
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441514
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4113-4121




Template-Type: ReDIF-Article 1.0
Author-Name: Sakiru Adebola Solarin
Author-X-Name-First: Sakiru Adebola
Author-X-Name-Last: Solarin
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Chris Stewart
Author-X-Name-First: Chris
Author-X-Name-Last: Stewart
Title: Is the consumption-income ratio stationary in African countries? Evidence from new time series tests that allow for structural breaks
Abstract: 
 This article examines whether the consumption-income ratio is stationary in 50 African countries. We use the residual augmented least squares (RALS-LM) unit root test that allows for structural breaks. The empirical evidence shows that the consumption income ratio is stationary around structural breaks in most (44 out of 50) African countries. This is consistent with the predictions of most economic theories. The general finding of mean reversion implies that (policy) shocks are likely to have only temporary effects on the consumption-income ratio in most African countries .
Journal: Applied Economics
Pages: 4122-4136
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441515
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441515
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4122-4136




Template-Type: ReDIF-Article 1.0
Author-Name: Barry Watson
Author-X-Name-First: Barry
Author-X-Name-Last: Watson
Author-Name: Lars Osberg
Author-X-Name-First: Lars
Author-X-Name-Last: Osberg
Title: Job insecurity and mental health in Canada
Abstract: 
 Using six cycles of Canada’s longitudinal National Population Health Survey data (2000–2001 to 2010–2011), this article examines the relationship between job insecurity and mental health. Job insecurity is evaluated in both subjective (perception of job insecurity) and objective (probability of joblessness) terms while mental health is measured using a standardized psychological distress index. Applying a person-specific fixed-effects estimator, results indicate that for males and females age 25–64, job insecurity, regardless of how it is measured, is associated with an increase in psychological distress. Results regarding unemployment are not as conclusive, suggesting that it is not so much the actual occurrence of job loss but the threat of unemployment that is associated with higher psychological distress. Estimates of the relationship between job insecurity and psychological distress using pooled ordinary least squares are much larger, implying that much of the psychological distress/job insecurity correlation may be due to unobservable fixed characteristics. All results are robust to the inclusion and exclusion of a host of other potential determinants including income-related variables, education, and various health measures.
Journal: Applied Economics
Pages: 4137-4152
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441516
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441516
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4137-4152




Template-Type: ReDIF-Article 1.0
Author-Name: Etienne Farvaque
Author-X-Name-First: Etienne
Author-X-Name-Last: Farvaque
Author-Name: Florence Huart
Author-X-Name-First: Florence
Author-X-Name-Last: Huart
Title: Drowned by numbers? Stabilization properties of an EU-wide unemployment insurance system
Abstract: 
 The recent crisis has given rise to proposals for the creation of a European unemployment insurance system. We simulate an EU-wide mechanism under various scenarios, varying methods of financing (common or country-specific contribution rates) and triggers for pay-outs (all time or contingent clauses). We analyse the impact of the system using different measures of stabilization under different fiscal multipliers. A system operating during bad times (periods where the increase in unemployment is large) would reduce GDP growth variability but also growth correlation among member countries. Hence, there is a trade-off between stabilization and synchronization of national business cycles.
Journal: Applied Economics
Pages: 4153-4181
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441517
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441517
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4153-4181




Template-Type: ReDIF-Article 1.0
Author-Name: Youba Ndiaye
Author-X-Name-First: Youba
Author-X-Name-Last: Ndiaye
Title: Road tax interactions among local governments: a spatial panel data analysis of the French case over the period 1984–2000
Abstract: 
 This article contributes to the literature on local tax interactions. Its novelty lies in its focus on the interactions of local governments via an indirect local tax on vehicles such as the road tax sticker and its analysis of interactions between direct and indirect local taxation. The main purpose of this article is to provide an empirical analysis of the reaction of road tax policy in a given French ‘department’ to changes in road tax policy in other ‘departments’. The analysis uses a novel panel data set covering the 96 French metropolitan ‘departments’ for the period from 1984 to 2000. First, the results confirm the presence of significant spatial interactions between French ‘departments’ due to the road tax sticker. Second, the estimation results also show that the business tax rate and/or the property tax rate on developed land are complements to the road tax sticker, whereas the residence tax rate and/or the property tax rate on undeveloped land are substitutes to the road tax instrument. Finally, I find that ‘departments’ with a larger, younger and older population set higher rates for the road tax sticker. The results are robust regarding alternative weight matrices.
Journal: Applied Economics
Pages: 4182-4196
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441518
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441518
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4182-4196




Template-Type: ReDIF-Article 1.0
Author-Name: Jiawen Luo
Author-X-Name-First: Jiawen
Author-X-Name-Last: Luo
Author-Name: Langnan Chen
Author-X-Name-First: Langnan
Author-X-Name-Last: Chen
Author-Name: Weiguo Zhang
Author-X-Name-First: Weiguo
Author-X-Name-Last: Zhang
Title: Covariance breakdowns and connectedness of crude oil futures markets with non-synchronous data
Abstract: 
 This article identifies the breakdowns in the covariance of three benchmark crude oil futures markets (WTI, Brent and Dubai) and investigates the changes of market connectedness across the breakdown periods. As the crude oil futures are traded in different regions, this article eliminates the non-synchronous trading data by employing the Vector Moving Average structure and the Bayesian data augmentation approach, which keeps the integrity of original data without changing its properties. The results show that there are significant breaks in the covariance structure of crude oil futures markets. The breakdown periods are consistent with the periods when the market volatilities are at high level and the returns are volatile. The changes of market connectedness are independent of the covariance states, which supports the globalization hypothesis for the crude oil market. The results also suggest that there is more information flow out of the WTI than to the WTI during the sample period, particularly during the breakdown periods in 2008&#x2013;2009.
Journal: Applied Economics
Pages: 422-443
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1489510
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489510
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:422-443




Template-Type: ReDIF-Article 1.0
Author-Name: Piyadasa Edirisuriya
Author-X-Name-First: Piyadasa
Author-X-Name-Last: Edirisuriya
Author-Name: Abeyratna Gunasekarage
Author-X-Name-First: Abeyratna
Author-X-Name-Last: Gunasekarage
Author-Name: Shrimal Perera
Author-X-Name-First: Shrimal
Author-X-Name-Last: Perera
Title: Product diversification and bank risk: evidence from South Asian banking institutions
Abstract: 
 We investigate whether the product diversification activities of South Asian banking institutions have led to an increase or decrease in their solvency and profit risks. Using the data of five countries &#x2013; India, Bangladesh, Nepal, Pakistan and Sri Lanka &#x2013; for the period 2000&#x2013;2016, we analyse the effect of both income and assets diversification activities on the Z-score and SDs of ROA (Return on Assets) and ROE Return on Equity). Among income diversification activities, securities trading income has a significant positive influence on bank risk while other categories have no influence. With respect to assets diversification, non-interest-bearing assets and loans given to government were found to have a significant positive influence on bank risk, while mortgage loans and non-classified loans have opposite influences. However, the impacts of securities trading income and loans given to the government are mainly confined to private sector banks and state-owned banks, respectively. We also uncover some country-specific diversification influences on the above relationships.
Journal: Applied Economics
Pages: 444-464
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1489516
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489516
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:444-464




Template-Type: ReDIF-Article 1.0
Author-Name: Tobias Haepp
Author-X-Name-First: Tobias
Author-X-Name-Last: Haepp
Author-Name: Mei Hsu
Author-X-Name-First: Mei
Author-X-Name-Last: Hsu
Title: Educational inequalities between children of marriage migrants and those of local-born parents &#x2013; quantile regression results from Taiwan
Abstract: 
 This article studies educational inequalities between children of marriage migrants and those of local-born parents using student test scores from Taiwan. We first find an average raw score gap of 9.5% for children of foreign parents. We then employ quantile regression methodology and find that, after introducing our extensive list of covariates, score gaps vanish for children with a mother from mainland China in all quantiles and for children with a Southeast Asian mother in the highest quantiles. In contrast, we identify large residual score gaps for children with a parent from a culturally more distant country in all quantiles. Different from previous studies which found the largest impact for language usage and parent education, we find that the physical home environment has the highest explanatory power in our analysis.
Journal: Applied Economics
Pages: 465-487
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1490001
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490001
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:465-487




Template-Type: ReDIF-Article 1.0
Author-Name: Chao Li
Author-X-Name-First: Chao
Author-X-Name-Last: Li
Author-Name: Zongyi Hu
Author-X-Name-First: Zongyi
Author-X-Name-Last: Hu
Author-Name: Liwei Tang
Author-X-Name-First: Liwei
Author-X-Name-Last: Tang
Title: Re-examining the Chinese A-share herding behaviour with a Fama-French augmented seven-factor model
Abstract: 
 In view of the contradicting results in existing research, this article proposes a new weighted cross-sectional variance (WCSV) model to re-examine the level of herding behaviour in the Chinese A-share market. Motivated by the original WCSV model, we utilize a Fama-French augmented seven-factor model as the underlying Arbitrage Pricing Theory model, which introduces the trading volume and turnover rate factors to the Fama-French five-factor model. The regression results show the superiority of our new model compared to the WCSV model based on Fama-French three- and five-factor models, which implies that the empirical findings of herding with our WCSV model are more reliable in relative terms. In the empirical aspect, in addition to testing the herding level yearly and integrally, to provide further insight on the relationship between market stress and herding, we apply our model to the Chinese A-share herding behaviour within each of three well-known crisis periods. In addition, we also split the sub-samples into pre-crisis and post-crisis periods to detect the existence of asymmetric herding behaviour for different market directions. Our findings suggest that Chinese A-share herding behaviour is more prevalent during large market turmoil, especially under condition of down market.
Journal: Applied Economics
Pages: 488-508
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494809
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494809
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:488-508




Template-Type: ReDIF-Article 1.0
Author-Name: Abhilash S. Nair
Author-X-Name-First: Abhilash S.
Author-X-Name-Last: Nair
Author-Name: R Vinod
Author-X-Name-First: R
Author-X-Name-Last: Vinod
Title: Determinants of the allocative, cost and scope efficiencies of Indian banks
Abstract: 
 This study aims to investigate the impact of competition on determinants of allocative, scope and cost efficiencies of Indian scheduled commercial banks (SCBs). Specifically, the study, analyzes the impact of the second round of licensing on the efficiency of Indian SCBs. This is the first paper to measure scope efficiency of Indian banks and analyze its determinants. A two-stage analysis is performed on a balanced panel dataset of Indian SCBs for the period 1999&#x2013;2016. In the first stage, the allocative, cost and scope efficiencies for each bank are estimated following the data envelopment analysis approach. In the second stage, internal determinants of the stated efficiency measures are estimated following the system of the generalized method of moments approach. The findings suggest that competition has not resulted in enhancing the efficiency of Indian SCBs. Among factors that can influence efficiency, it is seen that size does matter. Larger banks can enhance the efficiency of SCBs. It is also seen that having more foreign banks improves the overall efficiency of SCBs. However, before embarking on further rounds of licensing, the study posits that market-driven correction to succeed, it is imperative to address sunspots in the form of investor or borrower repression.
Journal: Applied Economics
Pages: 509-527
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494815
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494815
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:509-527




Template-Type: ReDIF-Article 1.0
Author-Name: Tong Qu
Author-X-Name-First: Tong
Author-X-Name-Last: Qu
Author-Name: Richard Harris
Author-X-Name-First: Richard
Author-X-Name-Last: Harris
Title: Does support from government help firms survive? Evidence on financial and political assistance in China, 1998&#x2013;2007
Abstract: 
 Using the National Bureau of Statistics data set over the period 1998&#x2013;2007, this article examines the dual roles of financial assistance and strong political links on firm survival in China by applying a semi-parametric duration model. We find that generally either financial assistance or strong political links had a positive effect on the likelihood of firm survival. Furthermore, if firms received both types of support from government, their survival rate was around two times as high compared to only receiving a single support. The likelihood of survival depended on the amount of assistance a firm received. We also find firm ownership impacts on its survival pattern. Lastly, China joining the World Trade Organisation (WTO) coincided with (cet. par.) higher firm failure, especially with regard to state-owned firms; however, this period also saw the authorities targeting political and financial help on the &#x2018;better&#x2019; firms (especially SOEs) with characteristics likely to increase their chance of survival.
Journal: Applied Economics
Pages: 528-541
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494816
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494816
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:528-541




Template-Type: ReDIF-Article 1.0
Author-Name: Claude Diebolt
Author-X-Name-First: Claude
Author-X-Name-Last: Diebolt
Author-Name: Ralph Hippe
Author-X-Name-First: Ralph
Author-X-Name-Last: Hippe
Title: The long-run impact of human capital on innovation and economic development in the regions of Europe
Abstract: 
 Human capital is supposed to be an important factor for innovation and economic development. However, the long-run impact of human capital on current innovation and economic development is still a black box, in particular at the regional level. Therefore, this paper makes the link between the past and the present. Using a large new dataset on regional human capital and other factors in the 19th and 20th century, we find that past regional human capital is a key factor explaining current regional disparities in innovation and economic development.
Journal: Applied Economics
Pages: 542-563
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495820
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495820
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:542-563




Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Caporin
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Caporin
Author-Name: Michele Costola
Author-X-Name-First: Michele
Author-X-Name-Last: Costola
Title: Asymmetry and leverage in GARCH models: a News Impact Curve perspective
Abstract: 
 Models for conditional heteroskedasticity belonging to the GARCH class are now common tools in many economics and finance applications. Among the many possible competing univariate GARCH models, one of the most interesting groups allows for the presence of the so-called asymmetry or leverage effect. In our view, asymmetry and leverage are two distinct phenomena, both inspired by the seminal work of Black in 1976. We propose definitions of leverage and asymmetry that build on the News Impact Curve, allowing to easily and coherently verify if they are both present. We show that several GARCH models are asymmetric but none is allowing for a proper leverage effect. Finally, we extend the leverage definition to a local leverage effect and show that the AGARCH model is coherent with the presence of local leverage. An empirical analysis completes the paper.
Journal: Applied Economics
Pages: 3345-3364
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578853
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578853
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3345-3364




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Abera Gelan
Author-X-Name-First: Abera
Author-X-Name-Last: Gelan
Title: Asymmetric effects of exchange rate changes on the demand for money in Africa
Abstract: 
 In order to account for currency substitution, the exchange rate is included in the demand for money. More recent studies have demonstrated that exchange rate changes could have asymmetric effects on the demand for money or domestic currency. In this paper, we consider the experiences of 18 African countries and show that in most countries, indeed exchange rate changes have short-run asymmetric effects on the demand for money. However, short-run effects translate to long-run asymmetric effects only in a limited number of African countries.
Journal: Applied Economics
Pages: 3365-3375
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578854
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578854
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3365-3375




Template-Type: ReDIF-Article 1.0
Author-Name: Suduan Chen
Author-X-Name-First: Suduan
Author-X-Name-Last: Chen
Title: An effective going concern prediction model for the sustainability of enterprises and capital market development
Abstract: 
 The purpose of this study is to construct a two-stage effective and innovative going concern prediction model to predict going concern doubt for the sustainability of enterprises and capital market development. Samples of this study are the companies listed on the Taiwan Stock Exchange or the Taipei Exchange, totalling 196 companies and including 49 companies with going concern doubt and 147 normal companies (with no going concern doubt). The data are taken from the Taiwan Economic Journal (TEJ) and the Market Observation Post System during the period from 2001 to 2016 (totalling 16 years). This study adopts a two-stage way to construct the going concern prediction models. In Stage I, the traditional statistical method of stepwise regression (SR) and the data mining technique artificial neural network (ANN) are applied to select the important variables. In Stage II, two decision tree algorithms (data mining techniques): classification and regression tree (CART) and C5.0 are used to establish the prediction models. The results show that the SR + CART model has the highest going concern prediction accuracy, with an overall accuracy of 87.42%.
Journal: Applied Economics
Pages: 3376-3388
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578855
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578855
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3376-3388




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Acedański
Author-X-Name-First: Jan
Author-X-Name-Last: Acedański
Author-Name: Jacek Pietrucha
Author-X-Name-First: Jacek
Author-X-Name-Last: Pietrucha
Title: Level and dynamics of financial depth: consequences for volatility of GDP
Abstract: 
 The existing literature documents positive but potentially non-linear relationship between financial depth measured as private credit to GDP ratio and volatility of GDP. In this paper, we extend the analysis by considering also the role of financial depth dynamics. We use dynamic spatial panel models to address the issue of cross-sectional dependence of errors obtained from the standard dynamic panel models. We confirm the non-linear impact of the financial depth level but also find that higher growth rates of financial depth are significantly associated with higher volatility of output. The role of the latter factor is considerably more important in terms of explained variance compared to the impact of the private credit level. These results are robust to changes in the sample range, specification of the model, and measurement of the key variables. We also document considerable differences between the estimates obtained from the standard GMM and the spatial models.
Journal: Applied Economics
Pages: 3389-3400
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578857
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578857
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3389-3400




Template-Type: ReDIF-Article 1.0
Author-Name: Luciana D. Costa
Author-X-Name-First: Luciana D.
Author-X-Name-Last: Costa
Author-Name: Teresa D. Harrison
Author-X-Name-First: Teresa D.
Author-X-Name-Last: Harrison
Title: Hospital competition, spillovers and provision of uncompensated care
Abstract: 
 Using data for California from 2005 until 2010, we investigate to what extent market competition and the presence of non-profits in the area may play a role in equilibrium uncompensated care (UC) levels, allowing those effects to differ according to the hospital’s ownership type. Previous studies have not explored the potential spillover effects from non-profit hospitals into the hospital decision of UC provision. We find evidence that regions with more non-profits experienced larger increases in UC levels, and even more in less concentrated markets. Our results also indicate that UC provision by for-profit hospitals decreases the larger the presence of non-profits in the region, and this effect is magnified when competition is more intense. We, therefore, find no positive spillover effects of non-profits into the hospital decision of UC provision, which may help us to understand the recent trends in UC levels.
Journal: Applied Economics
Pages: 3401-3412
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581905
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581905
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3401-3412




Template-Type: ReDIF-Article 1.0
Author-Name: Dong Hee Suh
Author-X-Name-First: Dong Hee
Author-X-Name-Last: Suh
Title: Interfuel substitution effects of biofuel use on carbon dioxide emissions: evidence from the transportation sector
Abstract: 
 This study examines the interfuel substitution effects of biofuel use on carbon dioxide emissions in the U.S. transportation sector. First, the dynamic linear logit model is used to examine substitution possibilities between biofuels and non-biofuels. The results reveal that petroleum demand is the most inelastic with respect to changes in petroleum prices since the transportation sector depends heavily on the use of petroleum. In addition, ethanol serves as a substitute for petroleum, showing that the use of ethanol can reduce the dependence on petroleum when petroleum prices increase. The results also indicate that ethanol is a complement for natural gas, while natural gas is a substitute for petroleum. Second, the coefficients for carbon dioxide emissions are used to compute the potential amount of carbon dioxide associated with interfuel substitution. The results represent that price-induced interfuel substitution is a critical factor to predict biofuel-related carbon dioxide emissions.
Journal: Applied Economics
Pages: 3413-3422
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581906
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581906
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3413-3422




Template-Type: ReDIF-Article 1.0
Author-Name: Pei-Fen Chen
Author-X-Name-First: Pei-Fen
Author-X-Name-Last: Chen
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Jhih-Hong Zeng
Author-X-Name-First: Jhih-Hong
Author-X-Name-Last: Zeng
Title: Economic policy uncertainty and firm investment: evidence from the U.S. market
Abstract: 
 This paper examines the impact of economic policy uncertainty on firm-level capital investment, by not only delving into the long-term investment-uncertainty relation like previous studies, but also analyzing the short-term investment-uncertainty relation for the U.S. market. The empirical investigations show that firms decrease short-term, long-term, and total firm investments when encountering higher economic policy uncertainties. The research also explores the non-linear investment-uncertainty relation based on various theories. Our findings present a U-shaped relationship between short-term, long-term, and total investments and uncertainties. Policy implications are provided from our empirical results.
Journal: Applied Economics
Pages: 3423-3435
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581909
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581909
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3423-3435




Template-Type: ReDIF-Article 1.0
Author-Name: Aleš Kocourek
Author-X-Name-First: Aleš
Author-X-Name-Last: Kocourek
Author-Name: Iva Nedomlelová
Author-X-Name-First: Iva
Author-X-Name-Last: Nedomlelová
Title: Three levels of education and the economic growth
Abstract: 
 The aim of this article is to solve the question how the three main stages of education contribute to the labour productivity growth in selected 125 countries in the period 1999–2014. The model is based on the neoclassical production function enhanced with human capital. The authors draw on the Penn World Tables 9.0 and UNESCO databases. The key benefit of this article is that human capital is characterized according to the returns to education from average number of years of formal schooling at the primary, secondary and tertiary level. Based on the panel data analysis, the contributions of capital and of the three levels of education to the growth of labour productivity are estimated. At the same time, the model allows to estimate the contribution of total factor productivity. The results of the analysis show that tertiary education has the strongest impact on labour productivity across the considered economies. At the same time, the breakdown of aggregate human capital by level of education leads to better clarification of the effects of human capital and physical capital on labour productivity. The conclusions also indicate a tendency towards rising returns to scale induced by the secondary and tertiary education.
Journal: Applied Economics
Pages: 2103-2116
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1388910
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1388910
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2103-2116




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Borghesi
Author-X-Name-First: Richard
Author-X-Name-Last: Borghesi
Title: Employee political affiliation as a driver of corporate social responsibility intensity
Abstract: 
 This article explores the connection between corporate social responsibility (CSR) intensity and the political affiliation of elite management and lower-level personnel and offers evidence that CSR initiatives are frequently driven from the bottom-up by employees actively expressing their sociopolitical views. While directors and CEOs play an important role within certain CSR dimensions, results suggest that employees are significantly more influential overall. A one-standard-deviation shift to the political left for directors, CEOs and elite executives yields gains in CSR of 5%, 9% and 3%, respectively, while a one-standard-deviation left-shift for employees produces a 33% increase. Findings may help to explain why similar firms engaging in comparable social initiatives can experience heterogeneous returns to CSR outlays and suggest that a corporate culture approach may be warranted in future studies.
Journal: Applied Economics
Pages: 2117-2132
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1388911
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1388911
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2117-2132




Template-Type: ReDIF-Article 1.0
Author-Name: Md Zakir Hossain
Author-X-Name-First: Md Zakir
Author-X-Name-Last: Hossain
Author-Name: Md Atiqur Rahman Khan
Author-X-Name-First: Md Atiqur Rahman
Author-X-Name-Last: Khan
Author-Name: M. Shibley Sadique
Author-X-Name-First: M. Shibley
Author-X-Name-Last: Sadique
Title: Basel III and perceived resilience of banks in the BRICS economies
Abstract: 
 This study investigates how the additional capital and liquidity requirements of Basel III would increase the resilience of banks. In particular, using panel data from 2007 to 2014, we examine the resilience of banks in the BRICS economies. Our results suggest that a 10% increase in capital adequacy ratio (CAR), Tier 1 capital ratio (TRA), and leverage ratio (LEV), the resilience (as measured by Z-Score of banks) increases by about 2.18, 0.89 and 1.31%, respectively. Similarly, for a 100% increase in liquidity coverage ratio (LCR), the resilience of banks increases by 0.51%, 1.10% and 1.19%, respectively, in the models associated with CAR, TRA, and LEV. Hence, our findings suggest that the CAR is robust to increase the resilience of banks. Our study also reveals that the LCR and LEV are the most effective to increase the resilience of banks if implemented simultaneously. We also find that the stage of economic development does not matter in formulating policies for the BRICS economies, and finally, we provide empirical evidence that economy-wide risk, such as a financial crisis, does not affect the resilience of banks and it influences the resilience of banks in the BRICS economies in the same way before and after the crisis.
Journal: Applied Economics
Pages: 2133-2146
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1391999
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1391999
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2133-2146




Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Moreno
Author-X-Name-First: Patricia
Author-X-Name-Last: Moreno
Author-Name: Juan Rodriguez-Poo
Author-X-Name-First: Juan
Author-X-Name-Last: Rodriguez-Poo
Author-Name: David Cantarero
Author-X-Name-First: David
Author-X-Name-Last: Cantarero
Title: A new approach to understanding labour supply of disabled people
Abstract: 
 The main interest of this article is to propose an individual utility maximization model to explain the low participation of disabled people. We account for heterogeneity of preferences and furthermore time of self-caring for disabled individuals is considered as an argument in the utility function. The hours of work decided by disabled individuals are neither homogeneous (they depend on unknown characteristics) nor continuous (discrete choice sets). We use data of 4790 households from the Spanish Survey of Disability, Personal Autonomy and Dependency and find association between time of informal care and labour participation and, consequently, the choice between jobs.
Journal: Applied Economics
Pages: 2147-2155
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392000
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392000
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2147-2155




Template-Type: ReDIF-Article 1.0
Author-Name: Santo Milasi
Author-X-Name-First: Santo
Author-X-Name-Last: Milasi
Author-Name: Robert J. Waldmann
Author-X-Name-First: Robert J.
Author-X-Name-Last: Waldmann
Title: Top marginal taxation and economic growth
Abstract: 
 The article explores the relationship between top marginal tax rates on personal income and economic growth. Using a data set of consistently measured top marginal tax rates for a panel of 18 OECD countries over the period 1965–2009, this article finds evidence in favour of a quadratic top tax–growth relationship. This represents the first reported evidence of a nonmonotonic significant relationship between top marginal income tax rates and economic growth. The point estimates of the regressions suggest that the marginal effect of higher top tax rates becomes negative above a growth-maximizing tax rate in the order of 60%. As top marginal tax rates observed after 1980 are below the estimated growth-maximizing level in most of the countries considered, a positive linear relationship between top marginal tax rates and GDP growth is found over the sub-period 1980–2009. Overall, results show that raising top marginal tax rates which are below their growth maximizing has the largest positive impact on growth when the related additional revenues are used to finance productive public expenditure, reduce budget deficits or reduce some other form of distortionary taxation.
Journal: Applied Economics
Pages: 2156-2170
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392001
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392001
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2156-2170




Template-Type: ReDIF-Article 1.0
Author-Name: Jerome Geyer-Klingeberg
Author-X-Name-First: Jerome
Author-X-Name-Last: Geyer-Klingeberg
Author-Name: Markus Hang
Author-X-Name-First: Markus
Author-X-Name-Last: Hang
Author-Name: Matthias Walter
Author-X-Name-First: Matthias
Author-X-Name-Last: Walter
Author-Name: Andreas Rathgeber
Author-X-Name-First: Andreas
Author-X-Name-Last: Rathgeber
Title: Do stock markets react to soccer games? A meta-regression analysis
Abstract: 
 This study applies meta-regression analysis to aggregate a sample of 1126 empirical estimates of the stock market reaction to soccer matches collected from 37 primary studies. Our results indicate that winning a match is not associated with significant return effects for both national teams and individual clubs. In the case of lost matches, we find strong evidence for publication bias, i.e. negative returns are systematically overrepresented causing a biased picture of the true soccer match effect. After correcting for this bias, the mean return after losses by national teams becomes statistically insignificant and accounts for only $$ - 5$$−5
 basis points. In the case of individual clubs, the corrected impact of a loss is a significant $$ - 39$$−39
 basis points effect. In a further analysis, we identify various aspects of study design like regional differences, time period under examination and the design of empirical analysis to be responsible for the wide variation in previous study outcomes. Overall, our findings provide evidence against the hypothesis that stock markets are driven by sports sentiment in the case of national teams. Due to the existence of strong asymmetry in the returns after wins and losses of individual clubs, behavioural explanations cannot be fully ruled out.
Journal: Applied Economics
Pages: 2171-2189
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392002
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392002
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2171-2189




Template-Type: ReDIF-Article 1.0
Author-Name: Tony Beatton
Author-X-Name-First: Tony
Author-X-Name-Last: Beatton
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: Volunteering and life or financial shocks: does income and wealth matter?
Abstract: 
 Volunteering is a dominant social force that signals a healthy state. However, although the literature on volunteering is extensive, knowledge on how life’s discontinuities (life and financial shocks) affect volunteering is limited because most studies work with static (cross-sectional) data. To reduce this shortcoming, we use longitudinal data from Australia (HILDA) that track the same individuals over time to assess how individuals from different income and wealth groups respond to life and financial shocks with respect to volunteering. Although both income and wealth can act as buffers against life shocks by providing stability and reducing vulnerability – which decreases the need to actually change behaviour patterns – we observe more heterogeneity than expected and also stickiness at the lowest income levels. Response delays in post-shock volunteering also suggest that volunteering habits may be driven and influenced by strong commitment and motivation that are not shattered by life or financial shocks. In fact, the amount of time spent volunteering tends to increase after negative income shocks and decrease after positive income shocks.
Journal: Applied Economics
Pages: 2190-2209
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392003
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392003
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2190-2209




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Hrushikesh Mallick
Author-X-Name-First: Hrushikesh
Author-X-Name-Last: Mallick
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: Is globalization detrimental to financial development? Further evidence from a very large emerging economy with significant orientation towards policies
Abstract: 
 This study attempts to explore the relationship between globalization and financial development by endogenizing economic growth, population density, inflation and institutional quality for India during the period from 1971–2013. Using the more conclusivecombined cointegration method, the study provides evidence of cointegration among these variables. The long-run and short-run estimates from the ARDL model and causality tests, respectively, suggest that globalization in its all forms (political, social and economic) and its overall measure as well as inflation are detrimental to financial development, while economic growth and population density both promote financial development. Furthermore, the results also point out that institutional quality is not conducive to financial development in India, and there exists a feedback effect between financial development and inflation. Moreover, financial development is influenced by economic growth, institutional quality and population density.
Journal: Applied Economics
Pages: 574-595
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1324615
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324615
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:574-595




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios Stafylas
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Stafylas
Author-Name: Keith Anderson
Author-X-Name-First: Keith
Author-X-Name-Last: Anderson
Author-Name: Moshfique Uddin
Author-X-Name-First: Moshfique
Author-X-Name-Last: Uddin
Title: Hedge fund index-engineering methodologies: a comparison and demonstration
Abstract: 
 We examine hedge fund (HF) index construction methodologies, by describing and analysing case studies from two well-known database vendors and evaluating them using numerical examples on the same dataset. Despite the fact that they follow a similar due diligence process, there are great differences in the index engineering practices arising from different quantitative techniques, even for indices in the same HF category. However, those quantitative techniques provide similar results. The differences are rather due to the use of different HF universes and different inclusion criteria. This article is the first to use actual numerical case studies to illustrate and compare how HF index engineering works. Having read it, the reader will have a good understanding of how HF indices are formed.
Journal: Applied Economics
Pages: 596-612
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1332746
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332746
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:596-612




Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Author-Name: Ana Maria Bandeira
Author-X-Name-First: Ana Maria
Author-X-Name-Last: Bandeira
Author-Name: Manuela Magalhães
Author-X-Name-First: Manuela
Author-X-Name-Last: Magalhães
Title: Labour-market institutions, (un)employment, wages, and growth: theory and data
Abstract: 
 We analyse the implications of labour-market institutions on wage inequality in favour of skilled labour, on relative unemployment of unskilled labour, and on the economic growth rate in two clusters resulting from 27 OECD countries: Cluster 1, closely related with the Anglo-Saxon model, and Cluster 2, dominated by the Continental-European model. By linking the unskilled wage to the skilled one in Cluster 2, due to the indexation of social benefits to per-capita income, we accommodate the observed paths of the three variables in both clusters between 1991 and 2008: Cluster 1 presents a higher wage inequality in favour of skilled labour, a lower unemployment of the unskilled labour, and a better economic growth rate.
Journal: Applied Economics
Pages: 613-633
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1332748
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332748
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:613-633




Template-Type: ReDIF-Article 1.0
Author-Name: Eléazar Zerbo
Author-X-Name-First: Eléazar
Author-X-Name-Last: Zerbo
Author-Name: Olivier Darné
Author-X-Name-First: Olivier
Author-X-Name-Last: Darné
Title: Unit root and trend breaks in per capita output: evidence from sub-Saharan African countries
Abstract: 
 This article examines the nonstationary properties of per capita real output in 28 sub-Saharan African (SSA) countries, covering the period 1960–2014. The sequential testing approach proposed by Kejriwal and Lopez (2013, Econometric Reviews 32(8), 892–927) is used to categorize SSA countries into growth shift, level shift and linear trend hypotheses based on the presence or not of breaks in slope and/or level of the trend function. The break dates are associated to major historical or economic events such as sociopolitical crisis, commodity price fluctuations on international market, the discovery and the exploitation of mineral deposits or unfavourable environmental and climatic conditions. The empirical evidences of appropriate unit root tests fail to reject the unit root hypothesis in all the countries, suggesting that a shock would have a permanent effect on growth process, and stabilization policies may be implemented in dealing with income fluctuations.
Journal: Applied Economics
Pages: 634-658
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1332752
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332752
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:634-658




Template-Type: ReDIF-Article 1.0
Author-Name: Lutz Bornmann
Author-X-Name-First: Lutz
Author-X-Name-Last: Bornmann
Author-Name: Alexander Butz
Author-X-Name-First: Alexander
Author-X-Name-Last: Butz
Author-Name: Klaus Wohlrabe
Author-X-Name-First: Klaus
Author-X-Name-Last: Wohlrabe
Title: What are the top five journals in economics? A new meta-ranking
Abstract: 
 We construct a meta-ranking of 277 economics journals based on 22 different rankings. The ranking incorporates bibliometric indicators from four different databases (Web of Science, Scopus, Google Scholar, and RePEc). We account for the different scaling of the bibliometric indicators by standardizing each ranking score. We run a principal component analysis to assign weights to each ranking. In our meta-ranking, the top five journals are given by: Quarterly Journal of Economics, Journal of Financial Economics, Journal of Economic Literature (JEL), Journal of Finance, and Econometrica. Additionally, leaving out the JEL as a survey journal and the finance journals in our top 10 list we confirm the perceived top five journals in the economics profession.
Journal: Applied Economics
Pages: 659-675
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1332753
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332753
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:659-675




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Steffen Rapp
Author-X-Name-First: Marc Steffen
Author-X-Name-Last: Rapp
Author-Name: Iuliia A. Udoieva
Author-X-Name-First: Iuliia A.
Author-X-Name-Last: Udoieva
Title: What matters in the finance–growth nexus of advanced economies? Evidence from OECD countries
Abstract: 
 Over the last decades, a large strand of finance and growth literature has provided ample evidence on the importance of financial deepening for economic development. Yet, recently, the focus of public debate has shifted towards the role of the financial system structure, an area in which empirical research remains relatively sparse and exploratory in nature. With this article, we aim to contribute to that debate by analysing the role the financial system structure plays in economic growth and risk. Focusing on stock markets and studying OECD economies over 1994–2013, we find that, ceteris paribus, financial systems with relatively larger stock markets facilitate economic growth and dampen economic risk. Our findings remain robust under application of instrumental variable and system generalized method of moments estimators, as well as when we use an alternative definition of stock market development, estimate median regressions, examine relatively high-frequency annual data, control for systemic banking crises or apply quadratic specifications. We find no such effect for private bond markets or private credit volume. Overall, our results suggest that financial system structure matters for the economic development of advanced economies and highlight the importance of a debate about the optimal structure of an economy’s financial system.
Journal: Applied Economics
Pages: 676-690
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1337867
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1337867
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:676-690




Template-Type: ReDIF-Article 1.0
Author-Name: Yi Wu
Author-X-Name-First: Yi
Author-X-Name-Last: Wu
Author-Name: Yunong Li
Author-X-Name-First: Yunong
Author-X-Name-Last: Li
Title: Impact of government intervention in the housing market: evidence from the housing purchase restriction policy in China
Abstract: 
 In 2010, a housing purchase restriction policy was announced by China’s central government and implemented gradually by several prefecture governments. In this article, we empirically investigate this policy’s effect on the housing market. Using a difference-in-difference framework, we show that the housing purchase restriction policy reduces housing prices and transaction amounts but does not influence the housing investment or construction markets. Moreover, upstream industry suffers more than downstream industry. The results are robust to a battery of robustness checks. Heterogeneity exists across cities. We find that first- and second-tier cities as well as highly urbanized cities experience great declines in housing prices after the policy’s implementation, especially cites that had high housing prices in 2010 and cities with high real estate investment as a proportion of fixed asset investment. However, the housing policy is less effective in curbing speculative demand.
Journal: Applied Economics
Pages: 691-705
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340569
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340569
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:691-705




Template-Type: ReDIF-Article 1.0
Author-Name: Tara McIndoe-Calder
Author-X-Name-First: Tara
Author-X-Name-Last: McIndoe-Calder
Title: Hyperinflation in Zimbabwe: money demand, seigniorage and aid shocks
Abstract: 
 Zimbabwe experienced record hyperinflation of 80 billion per cent per month in 2008. This article uses new data from Zimbabwe to investigate money demand under hyperinflation using an autoregressive distributed-lag model for the period 1980–2008. The results produce plausible convergence rates and long-run elasticities, indicating that real-money balances are cointegrated with the inflation rate and signifying an equilibrium relationship between the two series. Evidence is also presented suggesting prices were driven by increases in the money supply rather than by changes in price setting behaviour. The article uses the estimated elasticity on the inflation variable to calculate the maximum level of seigniorage revenue that could be raised in the economy. Actual seigniorage levels increased dramatically after 2000, with inflation eventually exceeding the rate required to maximize this revenue stream. This is discussed in relation to international financing constraints and the collapse of the domestic tax base.
Journal: Applied Economics
Pages: 1659-1675
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1371840
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1371840
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1659-1675




Template-Type: ReDIF-Article 1.0
Author-Name: Nobuya Fukugawa
Author-X-Name-First: Nobuya
Author-X-Name-Last: Fukugawa
Title: The contingent effect of social capital on performance of professional athletes: life cycle stages and changes in regulation as moderators
Abstract: 
 Motorboat racing is a sport organized as public gambling in Japan. As well as physical strength and driving technique, skills to adjust equipment are critical for racers to win a race. Based on the contingency theory of social capital, this study analysed comprehensive panel data of motorboat racers and revealed that bonding and bridging social capital had different impacts on performance according to life cycle stages of racers and changes in regulation. First, bonding social capital has a positive impact on performance when racers are less experienced and most need psychological aid stemming from strong ties. Second, bridging social capital has a positive impact on performance when racers are more experienced and have accumulated absorptive capacity to learn efficiently from diverse sources of knowledge. Third, both bonding and bridging social capital lose their explanatory power after the changes in regulation that shifted ownership of propellers from racers to the authority, which could mitigate the significance of the formation of small groups among racers to share cost and knowledge regarding the improvement in propellers. Research and managerial implications of the findings are discussed.
Journal: Applied Economics
Pages: 1676-1693
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1371843
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1371843
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1676-1693




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Lábaj
Author-X-Name-First: Martin
Author-X-Name-Last: Lábaj
Author-Name: Karol Morvay
Author-X-Name-First: Karol
Author-X-Name-Last: Morvay
Author-Name: Peter Silanič
Author-X-Name-First: Peter
Author-X-Name-Last: Silanič
Author-Name: Christoph Weiss
Author-X-Name-First: Christoph
Author-X-Name-Last: Weiss
Author-Name: Biliana Yontcheva
Author-X-Name-First: Biliana
Author-X-Name-Last: Yontcheva
Title: Market structure and competition in transition: results from a spatial analysis
Abstract: 
 The present article provides first microlevel (indirect) empirical evidence on changes in entry barriers, the determinants of firm profitability as well as the nature of competition for a transition economy. We estimate size thresholds required to support different numbers of firms for several retail and professional service industries in a large number of geographic markets in Slovakia. The 3 time periods in the analysis (1995, 2001 and 2010) characterize different stages of the transition process. Specific emphasis is given to spatial spill-over effects between local markets. Estimation results obtained from a spatial ordered probit model suggest that entry barriers have declined considerably (except for restaurants) and that the intensity of competition has increased on average. We further find that demand spill-overs and/or the effects associated with a positive correlation in unobservable explanatory variables seem to outweigh negative spill-over effects caused by competitive forces between neighbouring cities and villages. The importance of these spatial spill-over effects differs across industries.
Journal: Applied Economics
Pages: 1694-1715
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374535
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374535
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1694-1715




Template-Type: ReDIF-Article 1.0
Author-Name: Gustavo Cabrera
Author-X-Name-First: Gustavo
Author-X-Name-Last: Cabrera
Author-Name: Semei Coronado
Author-X-Name-First: Semei
Author-X-Name-Last: Coronado
Author-Name: Omar Rojas
Author-X-Name-First: Omar
Author-X-Name-Last: Rojas
Author-Name: Rafael Romero-Meza
Author-X-Name-First: Rafael
Author-X-Name-Last: Romero-Meza
Title: A Bayesian approach to model changes in volatility in the Mexican stock exchange index
Abstract: 
 We model the changes in volatility in the Mexican Stock Exchange Index using a Bayesian approach. We study the time series with a wide set of models characterized by a Markov switching heterogeneity. The advantage of this approach is that it allows for a broader spectrum of possible models since the estimation of the moments of the parameters is done using the finite mixture distribution MCMC method, without relying on assumptions about large sampling and mathematical optimization. This is particularly relevant for emerging markets’ financial data because of its special characteristics, like being more susceptible to jumps and changes in volatility caused by exchange rate swings, financial crises and oil and commodity prices. For model comparison, we use the marginal likelihood approach and the bridge sampling technique. The best representation of the data is given by a switching model with three states rather than any other autoregressive linear or non-linear model. The periods of volatility found by the model coincide with different financial crisis. Whereas other studies of volatility for the same market impose the Markovian model that captures changes in volatility, we let our model to be defined in an endogenous way.
Journal: Applied Economics
Pages: 1716-1724
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374536
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374536
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1716-1724




Template-Type: ReDIF-Article 1.0
Author-Name: Neel Rao
Author-X-Name-First: Neel
Author-X-Name-Last: Rao
Author-Name: Twisha Chatterjee
Author-X-Name-First: Twisha
Author-X-Name-Last: Chatterjee
Title: Sibling gender and wage differences
Abstract: 
 Family influences on economic performance are investigated. In particular, sibship sex composition is related to hourly wages using data from the National Longitudinal Survey of Youth 1979. The wages of men are increasing in the proportion of siblings who are brothers, but the wages of women are insensitive to sibling gender. Nonwage outcomes are generally unaffected. Contrasts by age structure and demographic group are also presented. The analysis addresses econometric challenges like the endogeneity of fertility and selection into the workforce. In addition, mechanisms such as labour market interactions, human capital investment and role model effects are documented. A questionnaire on job search indicates a same-gender bias in the use of brothers and sisters in obtaining employment. Developmental and psychological assessments suggest that brothers may be associated with worse childhood home environments and more traditional family attitudes among women. The findings are policy relevant and contribute to an understanding of gender differences and earnings inequality.
Journal: Applied Economics
Pages: 1725-1745
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374537
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374537
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1725-1745




Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Colombier
Author-X-Name-First: Carsten
Author-X-Name-Last: Colombier
Title: Population ageing in healthcare – a minor issue? Evidence from Switzerland
Abstract: 
 Our study shows that population ageing is a relevant determinant of healthcare expenditure (HCE). This conclusion supports the popular, but recently strongly contested, view that the coming population ageing will threaten the fiscal sustainability of health systems. We contribute to this debate, first by estimating the determinants of Swiss HCE with outlier-robust dynamic regressions, and second, by projecting Swiss HCE based on the estimates produced and new population scenarios. Medical advances and GDP per capita also play a decisive role. Governments can mitigate HCE growth by improving the health status of the population and by stimulating cost-effective and productive medical advances.
Journal: Applied Economics
Pages: 1746-1760
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374538
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374538
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1746-1760




Template-Type: ReDIF-Article 1.0
Author-Name: Wenchao Xu
Author-X-Name-First: Wenchao
Author-X-Name-Last: Xu
Author-Name: Scott E. Lowe
Author-X-Name-First: Scott E.
Author-X-Name-Last: Lowe
Title: An integrated analysis of the effects of local water institutions on irrigated agriculture outcomes in the arid western United States
Abstract: 
 Irrigation water rights and their governance structures constitute the foundation of local water institutions and profoundly influence water resource allocations, irrigated agricultural productivity and other consumptive water uses in the arid climate zones. This article explores the regional structures of irrigation water rights and water governance and empirically analyses the priority effects of water rights on irrigated agriculture at the micro level in Idaho, an arid and semiarid state in the western United States. We integrate a unique data set of water rights and water supplies with agricultural features and environmental characteristics into our empirical analysis. Results indicate that seniority in water resources allocation has significant, positive effects on both the average crop revenue and crop water use efficiency. Local water rights structures differ significantly in seniority and water sources from region to region. In response to the heterogeneity in local water rights structures, the aforementioned effect of allocative priority of water rights on average crop revenue per hectare and crop water productivity varies significantly, reaching up to an 87% difference, when measured across regions. In addition, the priority effects of water rights are nonlinear, which reflects the influence of historical patterns of water rights establishment on water institutions to date.
Journal: Applied Economics
Pages: 1761-1776
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374539
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374539
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1761-1776




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Thiem
Author-X-Name-First: Christopher
Author-X-Name-Last: Thiem
Title: Oil price uncertainty and the business cycle: Accounting for the influences of global supply and demand within a VAR GARCH-in-mean framework
Abstract: 
 This article reinvestigates the influence of oil price uncertainty on real economic activity in the United States using a four-variable VAR GARCH-in-mean asymmetric BEKK model. In contrast to previous studies in this area, the analysis focuses on business cycle fluctuations and we control for global supply and demand factors that might affect the real price of oil, its volatility as well as the US economy. We find that – even after accounting for these factors – oil price uncertainty still has a highly significant negative influence on the US business cycle. Our computations show that the effect is economically important during several periods, mostly after a significant variance shift in the mid-1980s. We simultaneously estimate the effect on the global business cycle but find that it is comparatively weak. Finally, significant spillover effects in the GARCH model suggest that oil price volatility is a gauge and channel of transmission of more general macroeconomic shocks and uncertainty. These linkages are particularly strong in case of unexpected bad news.
Journal: Applied Economics
Pages: 3735-3751
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436142
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436142
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3735-3751




Template-Type: ReDIF-Article 1.0
Author-Name: Joscha Beckmann
Author-X-Name-First: Joscha
Author-X-Name-Last: Beckmann
Author-Name: Keith Cuthbertson
Author-X-Name-First: Keith
Author-X-Name-Last: Cuthbertson
Title: Special issue of applied economics on ‘Finance and the real economy’
Journal: Applied Economics
Pages: 3645-3646
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436143
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436143
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3645-3646




Template-Type: ReDIF-Article 1.0
Author-Name: Alin Marius Andrieș
Author-X-Name-First: Alin Marius
Author-X-Name-Last: Andrieș
Author-Name: Bogdan Căpraru
Author-X-Name-First: Bogdan
Author-X-Name-Last: Căpraru
Author-Name: Simona Nistor
Author-X-Name-First: Simona
Author-X-Name-Last: Nistor
Title: Corporate governance and efficiency in banking: evidence from emerging economies
Abstract: 
 This article investigates the impact of corporate governance on bank efficiency across a sample of 139 commercial banks from 17 countries of Central and Eastern Europe during the period 2005–2012. Data on governance characteristics are hand-collected from banks’ reports. The empirical findings indicate that implementing rigorous corporate governance structures is associated with higher costs for banks and a lower level of efficiency. However, during the crisis, a tight governance mechanism significantly increases banks’ cost and technical efficiencies. We also show that prudent risk management is associated with both higher cost and technical efficiency for more capitalized banks, while rigid supervisory boards are linked with greater technical efficiency for more capitalized banks.
Journal: Applied Economics
Pages: 3812-3832
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436144
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436144
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3812-3832




Template-Type: ReDIF-Article 1.0
Author-Name: Fotini Economou
Author-X-Name-First: Fotini
Author-X-Name-Last: Economou
Author-Name: Christis Hassapis
Author-X-Name-First: Christis
Author-X-Name-Last: Hassapis
Author-Name: Nikolaos Philippas
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Philippas
Title: Investors’ fear and herding in the stock market
Abstract: 
 In this article, we examine herding in three developed stock markets testing for the impact of investors’ ‘fear’ on herding estimations. To this end, we employ daily data of all listed stocks from USA, UK and Germany from January 2004 to July 2014. We examine herd behaviour applying the cross-sectional dispersion approach. Moreover, we investigate the asymmetric herding behaviour under different market states and sub-periods. The stock markets under examination provide comparable implied volatility indices which are used as a proxy for fear. As a result, apart from the standard herding estimations within and across markets, we also augment the benchmark model with the fear indicator. Our empirical results document the statistically significant impact of fear on herding estimations. Moreover, there is evidence of cross market herding as well as evidence of herding in the UK during specific sub-periods.
Journal: Applied Economics
Pages: 3654-3663
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436145
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436145
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3654-3663




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Kühl
Author-X-Name-First: Michael
Author-X-Name-Last: Kühl
Title: Excess comovements between the euro/US dollar and pound sterling/US dollar exchange rates
Abstract: 
 The aim of this article is to discuss excess comovements of the euro/US dollar and pound sterling/US dollar exchange rates, i.e. we look for comovements of exchange rates which are stronger than implied by the fundamentals. The results of the empirical analysis provide evidence that excess comovements exist for the two exchange rates. A long-run analysis of correlations can verify that a link exists between the correlation dynamics of exchange rates, relative inflation rates, long-term interest rates, economic sentiments and money supply. We find that common movements of money supply, prices and economic sentiments each play a major role in comovements of the exchange rates. From the investigation of the two exchange rates, we conclude that macroeconomic fundamentals can account for the comovement but that common non-fundamental factors also have major significance for the exchange rates.
Journal: Applied Economics
Pages: 3664-3685
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436146
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436146
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3664-3685




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Ademmer
Author-X-Name-First: Martin
Author-X-Name-Last: Ademmer
Author-Name: Nils Jannsen
Author-X-Name-First: Nils
Author-X-Name-Last: Jannsen
Title: Post-crisis business investment in the euro area and the role of monetary policy
Abstract: 
 Business investment in the euro area strongly declined during the Global Financial Crisis and the Sovereign Debt Crisis. It has not yet rebounded to its pre-crisis trend despite the very expansionary monetary policy measures of the ECB. We analyse the sluggish recovery in business investment in the euro area and the role of monetary policy in three steps. We investigate the main factors that have impeded business investment since the Global Financial Crisis. We empirically analyse how business investment has developed compared to typical patterns during other financial crises. Based on these results, we then discuss how effective monetary policy has been in stimulating business investment since the Global Financial Crisis. We conclude that business investment in the euro area has developed broadly in line with typical post-crisis patterns. Monetary policy significantly contributed to stabilize business investment at the beginning of the crises. In the aftermath of the crises, however, there seems to be little scope for monetary policy to further stimulate investment.
Journal: Applied Economics
Pages: 3787-3797
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436147
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436147
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3787-3797




Template-Type: ReDIF-Article 1.0
Author-Name: Sunčica Vujić
Author-X-Name-First: Sunčica
Author-X-Name-Last: Vujić
Author-Name: Xiaoyu Zhang
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Zhang
Title: Does Twitter chatter matter? Online reviews and box office revenues
Abstract: 
 With a rapid rise of text-based social media and online Word-of-Mouth (WOM) activity, millions of people express their thoughts and opinions on a variety of topics. Considering that nowadays WOM is a most influential source of information when guiding consumers’ choice and purchase decisions, in this paper we look at the relationship between Twitter messages (tweets) and cinema box office revenues. Using static and dynamic panel data regression approaches, we show that the frequency, sentiment and timing of tweets posted about a film are correlated to different extent with the movie’s box office revenues, with negative tweets being particularly damaging to the box office revenues. From a managerial perspective, this is important to know, such that film production companies and distributors can adjust their strategy accordingly.
Journal: Applied Economics
Pages: 3702-3717
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436148
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436148
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3702-3717




Template-Type: ReDIF-Article 1.0
Author-Name: Simona Nistor
Author-X-Name-First: Simona
Author-X-Name-Last: Nistor
Author-Name: Valentina-Ioana Mera
Author-X-Name-First: Valentina-Ioana
Author-X-Name-Last: Mera
Author-Name: Monica Ioana Pop Silaghi
Author-X-Name-First: Monica Ioana
Author-X-Name-Last: Pop Silaghi
Title: Is education important in assessing the impact of institutions on economic growth in emerging economies?
Abstract: 
 In this article, we empirically revise the hypothesis that institutions cause economic growth for emerging countries starting from a theoretical model. Our sample consists of 21 countries covering different zones: European Emerging, Asia Pacific Emerging, Latin America, Middle-East and Africa while the status advanced versus secondary emerging countries based on FTSE (Financial Times Stock Exchange) classification is accounted for. The period analysed is 1995–2014. The methodology is based on System GMM estimator of Arellano-Bover and Blundell-Bond for dynamic panel data. Empirical findings suggest that only variables such as voice and accountability and government effectiveness have a significant positive impact on economic growth rates of the analysed countries. In the presence of control variables, i.e. trade and government final consumption, results are robust. Results remain robust for countries that have a high level of government expenditure on tertiary education which proves the role of education in assessing the impact of institutions on economic growth.
Journal: Applied Economics
Pages: 3840-3854
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436149
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436149
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3840-3854




Template-Type: ReDIF-Article 1.0
Author-Name: Anastassios A. Drakos
Author-X-Name-First: Anastassios A.
Author-X-Name-Last: Drakos
Author-Name: Georgios P. Kouretas
Author-X-Name-First: Georgios P.
Author-X-Name-Last: Kouretas
Author-Name: Prodromos Vlamis
Author-X-Name-First: Prodromos
Author-X-Name-Last: Vlamis
Title: Saving, investment and capital mobility in EU member countries: a panel data analysis of the Feldstein–Horioka puzzle
Abstract: 
 In this paper, we reexamine the long-standing and puzzling correlation between national saving and investment in 14 European Union (EU) countries. We employ a panel data set for the period 1970–2015 and we apply recently developed maximum likelihood panel cointegration methodologies. We find that there exists a long-run relationship between savings and investment for this panel of EU member countries, with the savings retention coefficient being low in magnitude but statistically different than zero. Therefore, we argue that there is weak evidence in favour of the Feldstein–Horioka puzzle and that the long-run international solvency condition is maintained in most of these countries. This evidence implies a moderate degree of capital mobility which is consistent with the macroeconomic experience of these countries during the period under investigation.
Journal: Applied Economics
Pages: 3798-3811
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436150
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436150
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3798-3811




Template-Type: ReDIF-Article 1.0
Author-Name: Pui Sun Tam
Author-X-Name-First: Pui Sun
Author-X-Name-Last: Tam
Title: Global trade flows and economic policy uncertainty
Abstract: 
 This article investigates the impacts of economic policy uncertainty (EPU) on global trade flows in gauging international trade developments. We employ a global vector autoregressive (GVAR) trade model, augmented with value-added bilateral trade linkages, that allows for quantifying the effects of economy-specific uncertainty shocks on exports and imports of individual economies. We find substantial spatial propagation in the temporal dynamics of international transmission of shocks amidst the manifestations of cross-border global value chains (GVCs) with China’s accession into the WTO. We provide evidence for the significance of EPU of China and the United States, particularly the latter, in influencing global trade flows. Our results show that while the US impacts can largely be attributed to its indirect trade linkages with other economies, the impacts of China can be relegated more to its direct GVC linkages. The findings have implications on trade protectionist inclinations of the current-term US government and the ongoing efforts of China’s policymakers in steering macroeconomic rebalancing for sustainable growth.
Journal: Applied Economics
Pages: 3718-3734
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436151
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436151
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3718-3734




Template-Type: ReDIF-Article 1.0
Author-Name: Ansgar Belke
Author-X-Name-First: Ansgar
Author-X-Name-Last: Belke
Author-Name: Irina Dubova
Author-X-Name-First: Irina
Author-X-Name-Last: Dubova
Author-Name: Thomas Osowski
Author-X-Name-First: Thomas
Author-X-Name-Last: Osowski
Title: Policy uncertainty and international financial markets: the case of Brexit
Abstract: 
 This study assesses the impact of the Brexit probability on both the UK and on international financial markets, for the first and the second statistical moments. As financial markets are by nature highly interlinked, one might expect that the uncertainty engendered by Brexit also has an impact on financial markets in several other countries. We first estimate the time-varying interactions between UK policy uncertainty, which to a large extent is attributed to uncertainty about Brexit and UK financial market volatilities. Second, we use two other measures of the perceived probability of Brexit before the referendum, namely daily data released by Betfair and results of polls published by Bloomberg. Based on these data sets, and using both panel and single-country SUR estimation methods, we analyse the Brexit effect on levels of stock returns, sovereign CDS, 10-year interest rates in 19 predominantly European countries, and those of the British pound and the euro. We show that Brexit-induced policy uncertainty will continue to cause instability in key financial markets and has the potential to damage the real economy in both the UK and other European countries. The main losers outside the UK are the ‘GIIPS’ economies: Greece, Ireland, Italy, Portugal and Spain.
Journal: Applied Economics
Pages: 3752-3770
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436152
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436152
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3752-3770




Template-Type: ReDIF-Article 1.0
Author-Name: Antonia Reinecke
Author-X-Name-First: Antonia
Author-X-Name-Last: Reinecke
Author-Name: Hans-Jörg Schmerer
Author-X-Name-First: Hans-Jörg
Author-X-Name-Last: Schmerer
Title: Redistribution, trade and corruption: an empirical assessment
Abstract: 
 This article explores the role of institutional quality in the trade and inequality nexus. Does corruption shape the relationship between trade and inequality through its impact on redistribution? Our answer to this question builds on the hypothesis that trade raises inequality and that governments may want to intervene through appropriate redistribution schemes that aim at taxing the gains from trade in a way that offsets the negative effects of trade on inequality. Moreover, we argue that this mechanism may be distorted by corruption and bad institutions in general. Quite to the contrary to common wisdom, we find that trade reduces inequality in countries with high institutional standards by means of a low level of corruption but increases inequality in countries with low levels of institutional quality.
Journal: Applied Economics
Pages: 3855-3869
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436153
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436153
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3855-3869




Template-Type: ReDIF-Article 1.0
Author-Name: Marco G. Ercolani
Author-X-Name-First: Marco G.
Author-X-Name-Last: Ercolani
Author-Name: William Pouliot
Author-X-Name-First: William
Author-X-Name-Last: Pouliot
Author-Name: Joanne S. Ercolani
Author-X-Name-First: Joanne S.
Author-X-Name-Last: Ercolani
Title: Luck versus skill over time: time-varying performance in the cross-section of mutual fund returns
Abstract: 
 Using returns histories spanning January 1984 to October 2014 of 5785 actively managed US closed-end equity mutual funds, we address the ‘thorny problems’ highlighted by Fama and French (The Journal of Finance, 2010, vol. 65, p. 1925) that arise due to their resampling procedure. This prevents them from capturing time variation in the parameters of equilibrium asset pricing models. These problems are addressed by combining innovative procedures which allow for testing of multiple break dates on fund-specific parameters along with cross-section bootstraps that remain valid in the presence of time-varying parameters. We find that substantial proportion – 8% – of the estimated versions of the asset pricing model have significant changes in their parameters. The effects of this time variation on the cross-section distribution of the risk-adjusted performance measure are significant and substantially increase centiles of the right tail of this distribution when compared to those produced without time-varying parameters. Our evidence regarding the lack of actively managed US equity mutual funds that generate excess returns is significantly weaker than those of Fama and French but our results do not overturn their pessimistic conclusion regarding the lack of skilled managers. We do find, unlike Fama and French, that managers generating negative returns are just unlucky but have no skill.
Journal: Applied Economics
Pages: 3686-3701
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436154
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436154
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3686-3701




Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Bampinas
Author-X-Name-First: Georgios
Author-X-Name-Last: Bampinas
Author-Name: Konstantinos Ladopoulos
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Ladopoulos
Author-Name: Theodore Panagiotidis
Author-X-Name-First: Theodore
Author-X-Name-Last: Panagiotidis
Title: A note on the estimated GARCH coefficients from the S&amp;P1500 universe
Abstract: 
 We employ 1440 stocks listed in the S&amp;P Composite 1500 Index of the NYSE. Three benchmark GARCH models are estimated for the returns of each individual stock under three alternative distributions (Normal, t and GED). We provide summary statistics for all the GARCH coefficients derived from 11,520 regressions. The EGARCH model with GED errors emerges as the preferred choice for the individual stocks in the S&amp;P 1500 universe when non-negativity and stationarity constraints in the conditional variance are imposed. 57% of the constraint’s violations are taking place in the S&amp;P small cap stocks.
Journal: Applied Economics
Pages: 3647-3653
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436155
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436155
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3647-3653




Template-Type: ReDIF-Article 1.0
Author-Name: Hanno Dihle
Author-X-Name-First: Hanno
Author-X-Name-Last: Dihle
Author-Name: Rafael Mentges
Author-X-Name-First: Rafael
Author-X-Name-Last: Mentges
Title: Real options or disaster risk? Distinguishing uncertainty effects on investment
Abstract: 
 Motivated by the fact that uncertainty shocks are a countercyclical phenomenon, this article takes a deeper look at the nature of uncertainty shocks in times of crisis and its effect on the real economy. We distinguish between volatility and disaster risk shocks and specify the consequences of these shock specifications on investment decisions. We first analyse the different impact of both shocks within a real options framework. Our theoretical results show that the effects of the two shocks are different, especially concerning disinvestment and the mid-term investment response. Second, we perform structural vector autoregression (SVAR) estimations on different country data sets. The SVAR estimations confirm our theoretical hypothesis: countries more prone to states of disaster do not show the usual real option pattern of investment to an uncertainty shock.
Journal: Applied Economics
Pages: 3771-3786
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436156
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436156
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3771-3786




Template-Type: ReDIF-Article 1.0
Author-Name: Dariya Mykhayliv
Author-X-Name-First: Dariya
Author-X-Name-Last: Mykhayliv
Author-Name: Klaus G Zauner
Author-X-Name-First: Klaus G
Author-X-Name-Last: Zauner
Title: The financial and economic performance of social banks
Abstract: 
 The financial crisis of 2008 provides evidence for the instability of the conventional banking system. Social banks may present a viable alternative for conventional banks. This article analyses the performance of social banks related to the bank business model, economic efficiency, asset quality, and stability by comparing social banks with banks where the difference is likely to be large, namely with the 30 global systemically important banks (G-SIBs) of the Financial Stability Board over the period 2000–2014. We also analyse the relative impact of the global financial crisis on the bank performance. The performance of social banks and G-SIBs is surprisingly similar.
Journal: Applied Economics
Pages: 3833-3839
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436157
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436157
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3833-3839




Template-Type: ReDIF-Article 1.0
Author-Name: Caitlin Cremin
Author-X-Name-First: Caitlin
Author-X-Name-Last: Cremin
Author-Name: Benjamin C. Anderson
Author-X-Name-First: Benjamin C.
Author-X-Name-Last: Anderson
Title: Commitment and satisfaction in the classroom and on the field: evidence from a Division I liberal arts college
Abstract: 
 Within higher education, there has been a persistent concern that student-athlete commitments to their athletic activities are detrimental to their academic studies. We collect data on student-athletes from a selective liberal arts university with Division I athletics where the expectations and levels of commitment to academics and athletics can be substantial. We fail to find any relationship between athletic experiences and time allocations to athletics or academics, but we do observe that individuals who exhibit greater levels of commitment in general, and to academics in particular, devote more time per week to academics and perform better as measured by grade point average. The only evidence of a trade-off between athletics and academics arises for individuals who report difficulty in managing and fulfilling their obligations who devote fewer hours to academics and perform worse academically. We also find that satisfaction with athletic experiences is correlated with interpersonal relationships and the athlete&#x2019;s role on his/her team whereas satisfaction with academics depends upon the influence that he/she has over training. However, this flexibility does not translate into improved academic performance. The results suggest that universities concerned with adverse impacts of athletics upon academic performance should focus on policies that promote time and task management skills.
Journal: Applied Economics
Pages: 858-880
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1497848
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497848
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:858-880




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Jung
Author-X-Name-First: Christopher
Author-X-Name-Last: Jung
Author-Name: Stephan N&#xFC;esch
Author-X-Name-First: Stephan
Author-X-Name-Last: N&#xFC;esch
Title: The more others care, the more you share? &#x2013; Social contagion as a stardom trigger of social media superstars &#x2013;
Abstract: 
 Emerging superstars on social media platforms reshape the media landscape. This research analyses social contagion as a stardom trigger of social media superstars (SMS). We argue that in addition to serving as a quality indicator, the number of observed consumers of SMS performances also indicates the suitability of discussing the SMS performances with others. We experimentally manipulated the number of previous views of a YouTube video and find that a high number of previous views significantly increases the perceived quality and the video&#x2019;s discussion suitability even when holding all objective video characteristics constant. We discuss implications for aspiring SMS and (online) marketers.
Journal: Applied Economics
Pages: 881-888
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1497849
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497849
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:881-888




Template-Type: ReDIF-Article 1.0
Author-Name: Yuan Cao
Author-X-Name-First: Yuan
Author-X-Name-Last: Cao
Title: Fertility and labor supply: evidence from the One-Child Policy in China
Abstract: 
 This study provides new evidence on&#xA0;on the causal effect of fertility on maternal labor supply in rural China, using the fact that in some parts of rural China couples are allowed to have a second child if their firstborn is female. Estimates show that a second child reduces maternal labor force participation by 4.6 percentage points, labor supply intensity (hours worked conditional on employment) by 1.4&#xA0;h per week and monthly income by 54.5 Chinese Yuan (18.7 percent). Further, the labor supply of mothers whose husbands are rural-to-urban migrants is the most sensitive to having an additional child, likely because they have more difficulty balancing farming and childcare. Conversely, labor supply is not reduced by fertility for mothers living in three-generation families, most likely because grandparents can provide both time and money to help with childcare.
Journal: Applied Economics
Pages: 889-910
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1502868
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502868
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:889-910




Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Scheld
Author-X-Name-First: Jessica
Author-X-Name-Last: Scheld
Title: Education decisions and labour market outcomes
Abstract: 
 The financial return to a college degree is an increasing concern amid rising tuition costs and stagnant wages. Using the Education Longitudinal Study of 2002 (ELS:2002), I analyse the effect of post-secondary choices on wages for individuals entering the labour force between 2004 and 2012. Matching methods provide evidence of strong returns to earning a bachelor&#x2019;s degree for both genders, similar to previous literature. Relative to high school graduates, women see wage benefits of 8&#x2013;21% for some college attendance. However, men see negative effects of between 6%&#x2013;13% from some college relative to high school graduates. The returns to a sub-baccalaureate degree as compared to earning some two-year credits is between 8%&#x2013;25% for women and 8&#x2013;14% for men. Further, the wage returns to a sub-baccalaureate degree as compared to earning some four-year credits is between 9%&#x2013;17% for women and 9&#x2013;20% for men. This translates into an additional $2,500-$4,700 per year for women and an additional $2,900-$6,400 per year for men. Since the average respondent with some four-year college experience has 2.3&#xA0;years of earned post-secondary credits, shifting some into sub-baccalaureate programs may substantially decrease both the financial and time commitments of post-secondary education while increasing the returns after degree attainment.
Journal: Applied Economics
Pages: 911-940
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1512741
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1512741
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:911-940




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Strydom
Author-X-Name-First: Maria
Author-X-Name-Last: Strydom
Author-Name: Amale Scally
Author-X-Name-First: Amale
Author-X-Name-Last: Scally
Author-Name: John Watson
Author-X-Name-First: John
Author-X-Name-Last: Watson
Title: Impact of mood and gender on individual investors&#x2019; reactions to retractions and corrections of earnings forecasts
Abstract: 
 Whilst individual investors&#x2019; reactions to earnings forecasts have been widely documented, the impact that retractions and/or corrections have on investors&#x2019; decisions has received little attention. Further, the role that either/both mood and gender of investors play has not been investigated within this context. This is especially important as failure by individual investors to adjust correctly to retractions/corrections of earnings may have adverse investment outcomes. Our study thus investigates whether mood and gender differences influence the way in which individual investors react to retractions and corrections of management earnings forecasts. In this paper, we show that individual investors do not adjust correctly to retractions and corrections of previously disclosed information. We also find that both mood and gender play a significant role in individual investors&#x2019; reactions to such announcements. Awareness of the differences in investors&#x2019; reactions to retractions and corrections of earnings according to their mood and/or gender can provide further insights on whether their investment decisions are rational and are hence consistent with traditional models of assumed rational investment behaviour.
Journal: Applied Economics
Pages: 941-955
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524125
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524125
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:941-955




Template-Type: ReDIF-Article 1.0
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Sugar daddy u: human capital investment and the university-based supply of &#x2018;romantic arrangements&#x2019;
Abstract: 
 To deal with the financial hardships associated with rising college tuition, many female college students in the U.S. are turning to risqu&#xE9; forms of financing human capital investments, such as agreeing to potentially lucrative &#x2018;romantic arrangements&#x2019; with older males, referred to as &#x2018;sugar daddies,&#x2019; through the largest Internet-based club in the industry. Yet despite this recent trend, there is a relative paucity of published academic research on the economics of such behaviour. Using data from the more than 220 nationally ranked (by U.S. News &amp; World Report&#x2019;s America&#x2019;s Best Colleges) colleges and universities in the U.S., presents results from both Poisson and scaled Poisson estimation suggesting that large, high-cost universities that are located in larger cities or where unemployment rates are higher lead the nation in the number of female students choosing such romantic arrangements in order to fund higher education. Moreover, those institutions that are chosen by more physically attractive female students, and those that enrol a higher percentage of female students, are also generating greater numbers of female student entrants into the sugar daddy industry. Each of these findings has implications for the human capital literature and the growing body of academic literature on the economics of beauty.
Journal: Applied Economics
Pages: 956-971
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524129
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524129
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:956-971




Template-Type: ReDIF-Article 1.0
Author-Name: Jinglu Jiang
Author-X-Name-First: Jinglu
Author-X-Name-Last: Jiang
Author-Name: Xin Xia
Author-X-Name-First: Xin
Author-X-Name-Last: Xia
Author-Name: Jinqiang Yang
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Yang
Title: Investment-based optimal capital structure
Abstract: 
 This paper extends the classical capital structure model by introducing the output of firm with &#x2018;AK&#x2019; production technology dynamically depends on the endogenous investment decision and capital accumulation. Based on our calibration, it shows that the flexibility of dynamic investment and capital accumulation induces the firm to take the lower leverage at financing time and makes the leverage estimate closer to empirically observed leverage ratios, which provides an effective explanation for the &#x2018;under-leverage puzzle&#x2019;. In addition, this model predicts that the market leverage behaves in a U-shaped manner with capital liquidity, which provides a novel empirical test.
Journal: Applied Economics
Pages: 972-981
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524130
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524130
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:972-981




Template-Type: ReDIF-Article 1.0
Author-Name: Brian Gendreau
Author-X-Name-First: Brian
Author-X-Name-Last: Gendreau
Author-Name: Yong Jin
Author-X-Name-First: Yong
Author-X-Name-Last: Jin
Author-Name: Mahendrarajah Nimalendran
Author-X-Name-First: Mahendrarajah
Author-X-Name-Last: Nimalendran
Author-Name: Xiaolong Zhong
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Zhong
Title: CVaR-LASSO Enhanced Index Replication (CLEIR): outperforming by minimizing downside risk
Abstract: 
 Index-funds are one of the most popular investment vehicles among investors, with total assets indexed to the S&P500 exceeding $8.7 trillion at-the-end of 2016. Recently, enhanced-index-funds, which seek to outperform an index while maintaining a similar risk-profile, have grown in popularity. We propose an enhanced-index-tracking method that uses the linear absolute shrinkage selection operator (LASSO) method to minimize the Conditional Value-at-Risk (CVaR) of the tracking error. This minimizes the large downside tracking-error while keeping the upside. Using historical and simulated data, our CLEIR method outperformed the benchmark with a tracking error of $$ \sim 1\% $$∼1%. The effect is more pronounced when the number of the constituents is large. Using 50–80 large stocks in the S&P 500 index, our method closely tracked the benchmark with an alpha $$2.55\% $$2.55%.
Journal: Applied Economics
Pages: 5637-5651
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616072
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616072
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5637-5651




Template-Type: ReDIF-Article 1.0
Author-Name: Kashif Munir
Author-X-Name-First: Kashif
Author-X-Name-Last: Munir
Author-Name: Nimra Riaz
Author-X-Name-First: Nimra
Author-X-Name-Last: Riaz
Title: Macroeconomic effects of fiscal policy in Pakistan: a disaggregate analysis
Abstract: 
 This study analyzes the macroeconomic effects of fiscal policy on macroeconomic variables in Pakistan. The study utilizes VAR framework and uses quarterly data of Pakistan from 1976Q1 to 2017Q4. The results showed that after an increase in government expenditures, private consumption and prices take three quarters to increase, while private investment follows the declining trend. Private consumption and interest rate are negatively related with taxes, while private investment and prices are positively related with taxes. Real GDP, private consumption and interest rate respond positively with an increase in developmental expenditure, public consumption and public investment. Private investment is negatively related with development expenditure, public consumption and public investment. An increase in direct tax as well as indirect tax leads to an increase in real GDP, private investment and interest rate, while private consumption takes three to five quarters to responds. Private investment and prices are positively related with non-tax revenue, while real GDP, private consumption and interest rate are negatively related. These results support the Keynesian view that government expenditure and taxes are useful tools to stimulate the economic activity, while crowding-out hypothesis holds in Pakistan as well. An active and efficient role of government is required for macroeconomic stability.
Journal: Applied Economics
Pages: 5652-5662
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616074
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616074
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5652-5662




Template-Type: ReDIF-Article 1.0
Author-Name: Glenn P. Jenkins
Author-X-Name-First: Glenn P.
Author-X-Name-Last: Jenkins
Author-Name: Hope Amala Anyabolu
Author-X-Name-First: Hope
Author-X-Name-Last: Amala Anyabolu
Author-Name: Pejman Bahramian
Author-X-Name-First: Pejman
Author-X-Name-Last: Bahramian
Title: Family decision-making for educational expenditure: new evidence from survey data for Nigeria
Abstract: 
 This study examines the determinants of educational expenditures by households in Nigeria. Data from the Nigerian General Household Survey, Panel 2012/2013, Wave 2 was used and a double-hurdle model was employed for the analysis. The results suggest household income, the age, education, gender of the household heads and urban versus rural residence have a significant impact on the decision to spend on education. Such expenditures are income elastic overall, but are very different in magnitude for low income compared to higher income families. It is found that the income elasticity of education expenditures are approximately four times greater for households in the bottom two-thirds of the income distribution than for those on the top one-third of the income distribution.
Journal: Applied Economics
Pages: 5663-5673
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616075
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616075
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5663-5673




Template-Type: ReDIF-Article 1.0
Author-Name: Veysel Avsar
Author-X-Name-First: Veysel
Author-X-Name-Last: Avsar
Author-Name: Nurgul Sevinc
Author-X-Name-First: Nurgul
Author-X-Name-Last: Sevinc
Title: Does antidumping cause investment and R&D?: Evidence from Turkey
Abstract: 
 This article employs Turkish firm-level data and analyses the effect of antidumping protection on capital spending and Research and Development (R&D). Using matching techniques and alternative control groups and applying difference-in-difference methodology, we find that antidumping duties imposed by the Turkish government significantly increase fixed investment and R&D expenditures. We also show that antidumping duties are effective in terms of increasing the domestic sales. To our knowledge, our article represents the first attempt to analyse the effect of antidumping policy in Turkey, a very active user of temporary trade barriers, using firm-level data.
Journal: Applied Economics
Pages: 5674-5682
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1617397
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1617397
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5674-5682




Template-Type: ReDIF-Article 1.0
Author-Name: Régis Chenavaz
Author-X-Name-First: Régis
Author-X-Name-Last: Chenavaz
Author-Name: Octavio Escobar
Author-X-Name-First: Octavio
Author-X-Name-Last: Escobar
Author-Name: Xavier Rousset
Author-X-Name-First: Xavier
Author-X-Name-Last: Rousset
Title: An analytical framework for retailer price and advertising decisions for products with temperature-sensitive demand
Abstract: 
 The demand for weather-sensitive products, such as beverages, ice creams, or chocolate varies with changes in temperature. Yet, retailers lack a framework to adapt the marketing mix elements, such as price and advertising, in line with such changes. We provide a theoretical framework to fill this gap by developing an analytical model to derive the optimal marketing mix when product demand depends on temperature. The model prescribes how price and advertising for different demand characteristics should be set following a temperature change. Integrating the temperature element in the marketing mix offers an original profit-enhancing strategy.
Journal: Applied Economics
Pages: 5683-5693
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1617398
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1617398
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5683-5693




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher M. Duquette
Author-X-Name-First: Christopher M.
Author-X-Name-Last: Duquette
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Major league baseball’s Moneyball at age 15: a re-appraisal
Abstract: 
 In the 15 years since publication of the book Moneyball: The Art of Winning an Unfair Game in 2003, major-league baseball (MLB) has seen the embrace of analytics by both fans and teams. Using 45 seasons of MLB data, since the introduction of the designated-hitter in the American League in 1973, the present study validates the central premise in Moneyball regarding the importance of certain performance metrics, such as on-base percentage (OBP). The terms in our empirical model are constructed such that our results permit a straightforward comparison of the relative contribution of each factor towards MLB teams’ success in winning games. We also provide evidence indicating that MLB teams have moved to align their payrolls with Moneyball analytics in the years following the book’s publication.
Journal: Applied Economics
Pages: 5694-5700
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1617399
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1617399
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5694-5700




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco José Callado-Muñoz
Author-X-Name-First: Francisco José
Author-X-Name-Last: Callado-Muñoz
Author-Name: Elena Del Rey
Author-X-Name-First: Elena
Author-X-Name-Last: Del Rey
Author-Name: Natalia Utrero-González
Author-X-Name-First: Natalia
Author-X-Name-Last: Utrero-González
Title: Income-contingent loan with personal insurance policy: an empirical assessment using Spanish data
Abstract: 
 We propose an Income Contingent Loan that defers the payment of university fees and charges a fixed proportion of gross income for 30 years or until the debt is written off. Under these conditions, some participants in the scheme will have insufficient income to fully repay their loan balances. The deficit will be covered by the taxpayer, who ultimately bears the risk of investing in higher education. We then propose to transfer this risk to the student by adding a mandatory personal insurance policy to the individual loan. We calculate the premium required for the system to break even in Spain when everybody pays the insurance cost. Alternatively, the payment of the premium can be deferred, adding it to total debt. Then, some participants in the scheme will have insufficient income to even pay the insurance cost, and the premium needs to be increased to maintain the sustainability of the program. Although these mechanisms imply redistribution towards borrowers who end up being low earners, we show that middle-income individuals contribute a higher proportion of their incomes to covering for those unable to repay. To provide the system with more internal progressivity, we propose to impose a minimum period of repayment.
Journal: Applied Economics
Pages: 5701-5711
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619017
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619017
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5701-5711




Template-Type: ReDIF-Article 1.0
Author-Name: Meghan Millea
Author-X-Name-First: Meghan
Author-X-Name-Last: Millea
Author-Name: Sandra Orozco-Aleman
Author-X-Name-First: Sandra
Author-X-Name-Last: Orozco-Aleman
Title: Estimating tuition elasticities of resident and non-resident enrolments at south-eastern public universities
Abstract: 
 Due to increased reliance on tuition revenue, universities must be cognizant of the impacts tuition changes have on enrolment. In economics, the law of demand indicates that price increases (tuition) cause quantity demanded (enrolments) to decrease. The impacts of tuition increases on revenue depend on the magnitude of these two changes. The contribution of this article is the methodology used to control for competitor pricing in enrolment elasticity models. For resident enrolment, we included other in-state, 4-year public universities. For non-resident enrolment, we used weighting schemes based on enrolment patterns by school and by state to incorporate competitors’ tuition rates and relevant economic and demographic information. We applied these methodologies to universities in the south-eastern U.S. from 2003 to 2010. We found that tuition elasticities of both resident and non-resident enrolments at 4-year public universities varied from inelastic resident enrolments to elastic non-resident enrolments at the state level. In some cases, competitor pricing significantly impacted enrolments; in other cases, it did not. Across the full sample, 1% increase in resident tuition rates decreased enrolments by 0.3%. The techniques developed in this article can be used by individual universities or university systems to inform their strategies in setting tuition rates.
Journal: Applied Economics
Pages: 2027-2040
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231904
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231904
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2027-2040




Template-Type: ReDIF-Article 1.0
Author-Name: Kui-Wai Li
Author-X-Name-First: Kui-Wai
Author-X-Name-Last: Li
Title: Is there an ‘interest rate – speculation’ relationship? Evidence from G7 in the pre- and post-2008 crisis
Abstract: 
 The article revisits the IS-LM macroeconomic model by incorporating speculation into the investment function. The discussion is supported empirically by using data from the G7 countries to examine the different interest rate regimes in the pre- and post-2008 financial crisis. The estimation of an ‘anchor’ interest rate provides a reference rate for the G7 countries. The empirical study is extended to examine if the three quantitative easing (QE) episodes in the U.S. are growth promoting. The article concludes that the maintenance of a high and stable interest rate policy is needed for sustainable growth in the G7 countries.
Journal: Applied Economics
Pages: 2041-2059
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231905
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231905
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2041-2059




Template-Type: ReDIF-Article 1.0
Author-Name: Veysel Eraslan
Author-X-Name-First: Veysel
Author-X-Name-Last: Eraslan
Title: Do sovereign rating announcements affect emerging market exchange rate correlations? A multivariate DCC-GARCH approach
Abstract: 
 This article investigates the effects of sovereign credit rating announcements on time-varying exchange rate return correlations for a sample of 11 emerging market countries over the period 2002–2015. The data set covers daily exchange rates and long-term foreign currency sovereign ratings, outlooks and watch list. The pairwise time-varying correlations are derived by corrected Dynamic Conditional Correlation (cDCC) modelling which is a member of multivariate Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models family. Furthermore, to capture the global factor effect, a dynamic-weighted index is created by using dynamic principal component (DPC) analysis. Findings suggest that some of the emerging market exchange rate co-movements are affected by rating announcements. Upgrades of Moody’s and downgrades of Fitch lead to spillovers. Main source of these spillovers are sovereign credit rating changes of European countries, especially Czech Republic and Turkey. Countries with high amount of external debt, large current account deficit and speculative grade are more prone to be influenced by announcements on a foreign country’s long-term sovereign rating.
Journal: Applied Economics
Pages: 2060-2082
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231906
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231906
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2060-2082




Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Merkel
Author-X-Name-First: Steffen
Author-X-Name-Last: Merkel
Author-Name: Sascha L. Schmidt
Author-X-Name-First: Sascha L.
Author-X-Name-Last: Schmidt
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: The effect of individual uncertainty on the specificity of human capital: empirical evidence from career developments in professional soccer
Abstract: 
 This study looks at careers in professional soccer to investigate the determinants of human capital (HC) specificity. Inspired by labour market research, we formulate three hypotheses on how uncertainty about the usefulness of individuals’ (more productive) specific skills affects their investment in (more flexible) general skills. The empirical analysis is based on unique panel data on school grades, soccer evaluations, and sociodemographic characteristics of 90 elite players from the youth academy of a German Bundesliga club. We find that senior and long-serving players, who are comparably certain that their (soccer) specific capital will be sufficient to pursue a lucrative professional career, invest less in general HC at school. Expected soccer performance, in contrast, has a counterintuitive positive effect. Our results expand knowledge on the factors influencing HC specificity from the macro to the subject level and highlight practical implications for institutions that train gifted individuals.
Journal: Applied Economics
Pages: 2083-2095
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231907
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231907
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2083-2095




Template-Type: ReDIF-Article 1.0
Author-Name: A. Almasri
Author-X-Name-First: A.
Author-X-Name-Last: Almasri
Author-Name: K. Månsson
Author-X-Name-First: K.
Author-X-Name-Last: Månsson
Author-Name: P. Sjölander
Author-X-Name-First: P.
Author-X-Name-Last: Sjölander
Author-Name: G. Shukur
Author-X-Name-First: G.
Author-X-Name-Last: Shukur
Title: A wavelet-based panel unit-root test in the presence of an unknown structural break and cross-sectional dependency, with an application of purchasing power parity theory in developing countries
Abstract: 
 This article introduces two different non-parametric wavelet-based panel unit-root tests in the presence of unknown structural breaks and cross-sectional dependencies in the data. These tests are compared with a previously suggested non-parametric wavelet test, the parameteric Im-Pesaran and Shin (IPS) test and a Wald type of test. The results from the Monte Carlo simulations clearly show that the new wavelet-ratio tests are superior to the traditional tests both in terms of size and power in panel unit-root tests because of its robustness to cross-section dependency and structural breaks. Based on an empirical Central American panel application, we can, in contrast to previous research (where bias due to structural breaks is simply disregarded), find strong, clear-cut support for purchasing power parity (PPP) in this developing region.
Journal: Applied Economics
Pages: 2096-2105
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231908
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231908
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2096-2105




Template-Type: ReDIF-Article 1.0
Author-Name: Chatura Ariyadasa
Author-X-Name-First: Chatura
Author-X-Name-Last: Ariyadasa
Author-Name: E. A. Selvanathan
Author-X-Name-First: E. A.
Author-X-Name-Last: Selvanathan
Author-Name: M. A. B. Siddique
Author-X-Name-First: M. A. B.
Author-X-Name-Last: Siddique
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: On the profitability of commercial banks: the Sri Lankan case
Abstract: 
 This study determines the factors affecting the profitability of licensed commercial banks (LCBs) in Sri Lanka, including the effect of the prolonged conflict which ended in 2009. Using an error correction model together with data for the period 2006–2014 of 10 major LCBs, the results reveal that, in the short run, capital and liquidity have a positive effect on bank profitability and default loans, interest margin (IM), operating cost, and interest rates (IRs) have a negative effect. In the long run, bank profitability is significantly impacted by default loans, IM, real GDP, inflation, IRs, capital, operating cost, and conflict. The ending of the prolonged conflict has significantly contributed to improved bank performance.
Journal: Applied Economics
Pages: 2106-2116
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231909
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231909
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2106-2116




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas E. Conine
Author-X-Name-First: Thomas E.
Author-X-Name-Last: Conine
Author-Name: Michael B. McDonald
Author-X-Name-First: Michael B.
Author-X-Name-Last: McDonald
Author-Name: Maurry Tamarkin
Author-X-Name-First: Maurry
Author-X-Name-Last: Tamarkin
Title: Estimation of relative risk aversion across time
Abstract: 
 This article examines relative risk aversion in the framework of a three-moment asset pricing model that accounts for skewness. Accounting for skewness in calculating risk aversion gives a more accurate series of estimates of risk aversion and helps to reconcile the wide disparity in risk coefficients found in past literature. Risk aversion coefficients are calculated from 1926 to 2014 using stock market returns. This procedure results in a time series of data that can be related to other variables such as real interest rates and changes in demand for various asset classes.
Journal: Applied Economics
Pages: 2117-2124
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231910
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231910
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2117-2124




Template-Type: ReDIF-Article 1.0
Author-Name: Nilanjana Chakraborty
Author-X-Name-First: Nilanjana
Author-X-Name-Last: Chakraborty
Author-Name: Mohammed M Elgammal
Author-X-Name-First: Mohammed M
Author-X-Name-Last: Elgammal
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Rational functions: an alternative approach to asset pricing
Abstract: 
 This paper shows that asset prices are linear polynomials of various underlying explanatory factors and asset returns being ratios of these polynomials, are rational functions that do not add linearly when averaging. Hence, average returns should be modeled based on stock prices. However, continuous returns may be treated as approximately linear across time and modeled directly. Our new Rational Function (RF) models, empirically outperform the traditional asset pricing models like the Capital Asset Pricing Model (CAPM) and the Fama&#x2013;French three and five-factor models for both average and continuous returns. Moreover, the RF theory also provides a model to estimate the asset volumes. The average change in asset volumes together with average returns provide the estimates for average change in market values of assets. Thus, the RF model approach can be used to select assets that provide either highest returns for profit maximization or highest change in market values for wealth maximization for given levels of risk.
Journal: Applied Economics
Pages: 2091-2119
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540848
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540848
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2091-2119




Template-Type: ReDIF-Article 1.0
Author-Name: Heather L.R. Tierney
Author-X-Name-First: Heather L.R.
Author-X-Name-Last: Tierney
Title: Tracking real-time data revisions in inflation persistence
Abstract: 
 Regarding the forecasting of real-time data, it is assumed that the third quarter release produces the best forecasts since it includes data from new and revised sources, which this paper finds is not necessarily the case. There seems to be a benchmark effect when estimating the local nonparametric regressions and the forecasts of real-time PCE and core PCE when examining the four benchmark periods beginning in 1996:Q1, 1999:Q4, 2003:Q4, and 2009:Q3. There is a benchmark effect with respect to the estimated local nonparametric slopes with the demarcation being at the 2003:Q4 benchmark, which is also the demarcation for the forecasting results. For the benchmark revisions periods of 1996:Q1 and 1999:Q4, the second quarter real-time data releases produce the smaller RMSE and for the benchmark revisions of 2003:Q4 and 2009:Q3, the third quarter real-time data releases produce forecasts with smaller RMSE approximately 58% and 60% of the time, respectively.Abbreviations: PCE, Personal Consumption Expenditures; KWLS, Kernel Weighted Least Squares; "V_" as a prefix stand for vintage, i.e. V_2003:Q4 is vintage 2003:Q4, which means that the data sample ends in 2003: Q3; IRSC, integrated residual squares criterion; NPISH, Non-Profit Institutions Serving Households; SNA, System of Accounts; RMSE, Root Mean Square Error; MAE, Mean Absolute Error; NAICS, North American Industry Classification System; SIC, Standard Industrial Classification; ARSC, Average Residual Squares Criterion; I-O, Input &#x2013; Output; EIA, Energy Information Administration; ATM, Automated Teller Machines; BEA, Bureau of Economic Analysis; SNA, System of Accounts
Journal: Applied Economics
Pages: 2120-2142
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540849
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540849
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2120-2142




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Tiryaki
Author-X-Name-First: Ahmet
Author-X-Name-Last: Tiryaki
Author-Name: Re&#x15F;at Ceylan
Author-X-Name-First: Re&#x15F;at
Author-X-Name-Last: Ceylan
Author-Name: Levent Erdo&#x11F;an
Author-X-Name-First: Levent
Author-X-Name-Last: Erdo&#x11F;an
Title: Asymmetric effects of industrial production, money supply and exchange rate changes on stock returns in Turkey
Abstract: 
 The aim of this article is twofold: First, it examines the asymmetric effects of industrial production, money supply and RER on stock returns in Turkey by using the non-linear&#xA0;autoregressive distributed lag (NARDL) model over the periods of 1994:01&#x2013;2017:05 and 2002:01&#x2013;2017:05. Second, it tries to determine whether there is a change of these macroeconomic variables&#x2019; effects on stock returns after the 2001 financial crisis since after 2002&#xA0;period represents a structural break from the past in terms of economic, political and macroeconomic policy approaches. The study finds that the effects of the changes in industrial production, money supply and RER on stock returns are asymmetric, and the asymmetries are larger after the 2002 subsample compared to the full&#xA0;sample period. The empirical results further suggest that tight monetary policies appear to retard the stock returns more than easy monetary policies that stimulate them.
Journal: Applied Economics
Pages: 2143-2154
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540850
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540850
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2143-2154




Template-Type: ReDIF-Article 1.0
Author-Name: Zhongyuan Geng
Author-X-Name-First: Zhongyuan
Author-X-Name-Last: Geng
Author-Name: Xuan Liu
Author-X-Name-First: Xuan
Author-X-Name-Last: Liu
Title: Optimal input trade policy under economic uncertainties in a small open economy
Abstract: 
 This article theoretically analyses optimal input trade policy under economic uncertainties in a small open economy. The benchmark model explains both key business cycle moments and asset prices of a representative emerging economy, and the corresponding deterministic version of the model finds no gain by deviating from the free input trade policy. The main findings are&#xA0;as follows: (1) it is optimal for the government to subsidize imported intermediate inputs in the benchmark model and (2) the result is robust to various shocks, various key structural parameters and various preference specifications.
Journal: Applied Economics
Pages: 2155-2171
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540851
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540851
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2155-2171




Template-Type: ReDIF-Article 1.0
Author-Name: Hui Wang
Author-X-Name-First: Hui
Author-X-Name-Last: Wang
Author-Name: Yanyi Wang
Author-X-Name-First: Yanyi
Author-X-Name-Last: Wang
Author-Name: Shunming Zhang
Author-X-Name-First: Shunming
Author-X-Name-Last: Zhang
Title: Numerical simulation on property tax reform: evidence from China
Abstract: 
 This article analyses the property tax reform in China in a computable general equilibrium model that recognizes the interaction between and among housing markets in different provinces and macroeconomic development. Using real data in 2010, we present the benchmark equilibrium for reference property and income tax rates. Then, we examine different property and income tax policies and make a comparison of their production, consumption, welfare and national income. We find that the implementation of property tax would decrease the house production at the expense of welfare in taxed area. The expansion of the taxed regions may increase the total social welfare and national income. Even though property tax policy may not be able to change&#xA0;the income distribution in China, increasing income tax rate could narrow the income disparity. Finally, this article shows the reliability of the conclusions when sensitivity analysis on optimal condition of equilibrium computation is performed under varied property tax policy.
Journal: Applied Economics
Pages: 2172-2194
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540852
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540852
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2172-2194




Template-Type: ReDIF-Article 1.0
Author-Name: Tong Shu
Author-X-Name-First: Tong
Author-X-Name-Last: Shu
Author-Name: Yongjian Wang
Author-X-Name-First: Yongjian
Author-X-Name-Last: Wang
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Author-Name: Yan Yang
Author-X-Name-First: Yan
Author-X-Name-Last: Yang
Title: Analysis of evolutionary game in structural formation of market power in remanufacturing supply chains
Abstract: 
 It is normal for enterprises to engage in remanufacturing nowadays. Nevertheless, the concern of enterprises and researchers is whether remanufacturers should compete for leadership in supply chains. Considering the WTP for new and remanufactured products differs, this article the evolutionary game theory model in three structures of leadership in supply chains. It investigates the processes of market evolution and choices of strategies when manufacturers and retailers compete or do not compete for leadership in the market. It has been shown in the case of market evolution, according to the 12 conditions formed from different prices that manufacturer and retailer have to pay for competing for leadership, there are five types of ultimate evolutionary stability about the choices of strategies. Further analyses show that these five different evolutionary stability results include nine different evolutionary paths. Analyses of examples further show the evolutionary processes and results in distinct circumstances. This article extends the application of the evolutionary game in remanufacturing supply chains in theory and provides some guidance for enterprises to make decisions when they consider whether they compete for leaders in remanufacturing supply chains in reality.
Journal: Applied Economics
Pages: 2195-2220
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540853
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540853
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2195-2220




Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Moral-Benito
Author-X-Name-First: Enrique
Author-X-Name-Last: Moral-Benito
Author-Name: Paul Allison
Author-X-Name-First: Paul
Author-X-Name-Last: Allison
Author-Name: Richard Williams
Author-X-Name-First: Richard
Author-X-Name-Last: Williams
Title: Dynamic panel data modelling using maximum likelihood: an alternative to Arellano-Bond
Abstract: 
 The Arellano-Bond estimator is widely used among applied researchers when estimating dynamic panels with fixed effects and predetermined regressors. This estimator might behave poorly in finite samples when the cross-section dimension of the data is small (i.e. small $$N$$N), especially if the variables under analysis are persistent over time. This paper discusses a maximum likelihood estimator that is asymptotically equivalent to Arellano and Bond (1991) but presents better finite sample behaviour. The estimator is based on an alternative parametrization of the likelihood function introduced in Moral-Benito (2013). Moreover, it is easy to implement in Stata using the xtdpdml command as described in a&#xA0;companion paper published in the Stata Journal, which also discusses further advantages of the proposed estimator for practitioners.
Journal: Applied Economics
Pages: 2221-2232
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540854
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540854
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2221-2232




Template-Type: ReDIF-Article 1.0
Author-Name: Hélène Bouscasse
Author-X-Name-First: Hélène
Author-X-Name-Last: Bouscasse
Author-Name: Matthieu de Lapparent
Author-X-Name-First: Matthieu
Author-X-Name-Last: de Lapparent
Title: A rank-dependent utility approach to model intra- and inter-individual heterogeneity in risky choice behaviours
Abstract: 
 Using a stated preferences survey, the objective of this paper is to investigate the intra- and inter-individual heterogeneity of mode choice, when travel time is subject to variability. By‘inter-individual heterogeneity’ is meant that people are different in terms of attitude to risk and have different utility functions. By ‘intra-individual heterogeneity’ is meant that the behaviour may be different even when performed by the same individual when faced with a different mode of transport. Based on Rank-Dependent Utility Theory, the paper shows that the occurrence of delays associated with train trips is overestimated whereas they are underestimated for car trips. A latent-class logit model offers a somewhat different perspective: if, overall, car users are more likely to perceive possible delays for train trips than for car trips, train users tend to consider the objective occurrence of delays as they are presented in the survey and adopt a risk neutral choice behaviour.
Journal: Applied Economics
Pages: 3337-3353
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710453
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710453
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3337-3353




Template-Type: ReDIF-Article 1.0
Author-Name: Ji Wu
Author-X-Name-First: Ji
Author-X-Name-Last: Wu
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Author-Name: Shiyu Zhang
Author-X-Name-First: Shiyu
Author-X-Name-Last: Zhang
Author-Name: Liping Zou
Author-X-Name-First: Liping
Author-X-Name-Last: Zou
Title: The economic policy uncertainty and firm investment in Australia
Abstract: 
 This paper examines the impact of economic policy uncertainty (EPU) on the Australian firm investment activity. We find a significant positive relationship between the EPU and the firm investment over 2002 to 2017 period. Our main results remain unchanged after several endogeneity tests. Further analysis reveals that this relationship becomes pronounced for firms if their headquarters located in small states, firms with more tangible assets, higher operating cash flows and cash holdings, higher profits and leverage, but firms with fewer dividend payouts. Our paper sheds lights on the unique attribute of the impact of the EPU on the Australian firm investment activity and offers important policy and managerial implications.
Journal: Applied Economics
Pages: 3354-3378
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710454
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710454
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3354-3378




Template-Type: ReDIF-Article 1.0
Author-Name: Simona Rasciute
Author-X-Name-First: Simona
Author-X-Name-Last: Rasciute
Author-Name: Paul Downward
Author-X-Name-First: Paul
Author-X-Name-Last: Downward
Author-Name: Nick Simmons
Author-X-Name-First: Nick
Author-X-Name-Last: Simmons
Title: Intrinsic versus instrumental benefits of higher education: the challenge from self-funded higher education
Abstract: 
 UK policy concern about the value and funding of Higher Education has focussed on the intrinsic and instrumental impacts of education. Typically, returns to education are identified by narrow economic metrics, like earnings. However, policy makers recognize the need for wider measures of welfare. Consequently, contemporaneous relationships with subjective well-being (SWB) have been explored. In this paper the effects of higher education on SWB are mapped through time. The results show positive effects in the first year at university that dissipate afterwards. Intrinsic benefits from education remain but get eroded implying increased stress from loan financed education with transition to a more instrumental perspective on education.
Journal: Applied Economics
Pages: 3379-3390
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710455
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710455
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3379-3390




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: On the different survival rates of Portuguese microbusinesses – the case of projects supported by microcredit
Abstract: 
 In spite of their importance to the micro-entrepreneur’s life, Portuguese microbusinesses exhibit a short duration in activity. However, until now there has been scarce attention about the determinants characterizing the microbusiness and/or the micro-entrepreneur. This paper is based on a very comprehensive survey distributed to the microcredit borrowers in Portugal. The main empirical findings suggest that more mature entrepreneurs, with family support, a permanent set of customers, and an awareness of the quality of their goods and services exhibit lower hazard rates of finishing the business. Conversely, high-fixed costs, bad business locations, and periods of economic crisis significantly reduce the duration of the business.
Journal: Applied Economics
Pages: 3391-3405
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710456
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710456
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3391-3405




Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Huei Chiao
Author-X-Name-First: Cheng-Huei
Author-X-Name-Last: Chiao
Author-Name: Bill Hu
Author-X-Name-First: Bill
Author-X-Name-Last: Hu
Author-Name: Ying Huang
Author-X-Name-First: Ying
Author-X-Name-Last: Huang
Author-Name: Jim Washam
Author-X-Name-First: Jim
Author-X-Name-Last: Washam
Title: Priced on the note: the case of Japanese IPOs
Abstract: 
 This article examines the pricing of Japanese IPOs: 54.26% are priced in 1,000 Japanese yen increments (The Japanese yen (JPY) has denominations of banknotes and coins. Banknotes are in 1,000, 2,000, 5,000, and 10,000-yen. Coins are in 1, 5, 10, 50, 100, and 500-yen. One thousand banknotes are similar to US $10 dollars. Coins are considered as changes in Japan.) (note-ending IPOs), an economically large increment on a per-share basis that is equivalent to 10 US dollar increments assuming an exchange rate of 1 US dollar to 100 Japanese yen. The number of note-ending IPOs increases with price levels and pricing uncertainty, supporting the negotiation hypothesis. Note-ending IPOs are associated with higher volatility, higher underwriters’ fees, wider filing price range, smaller deal size, shorter firm age, and lower underwriter reputation. Price clustering contributes to IPO underpricing. The initial returns are 60.44% higher for note-ending relative to coin-ending IPOs. These results shed light on the pricing of Japanese IPOs due to negotiations and on investment opportunities with note-ending IPOs.
Journal: Applied Economics
Pages: 3406-3417
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1711507
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1711507
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3406-3417




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Geiger
Author-X-Name-First: Martin
Author-X-Name-Last: Geiger
Author-Name: Eric Mayer
Author-X-Name-First: Eric
Author-X-Name-Last: Mayer
Author-Name: Johann Scharler
Author-X-Name-First: Johann
Author-X-Name-Last: Scharler
Title: Inequality and the business cycle: evidence from U.S. survey data
Abstract: 
 We study the effects of macroeconomic shocks on measures of economic inequality obtained from U.S. survey data. To identify aggregate supply, aggregate demand, and monetary policy shocks, we estimate vector autoregressions and impose sign and zero restrictions on impulse response functions. We find that the effects of the macroeconomic shocks on inequality depend on the type of shock as well as on the measure of inequality considered. Contractionary monetary policy shocks increase expenditure and consumption inequality, whereas income and earnings inequality are less affected. Adverse aggregate supply and demand shocks increase income and earnings inequality, but reduce expenditure and consumption inequality. Our results suggest that different channels dominate in the transmission of the shocks. The earnings heterogeneity channel is consistent with the inequality dynamics after monetary policy shocks, but it appears to be less crucial when the economy is hit by either aggregate supply or aggregate demand shocks. Using variance decompositions, we find that although the macroeconomic shocks account for large shares of the variation in the macroeconomic variables, their contributions to the dynamics of the inequality measures are limited.
Journal: Applied Economics
Pages: 3418-3435
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1711508
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1711508
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3418-3435




Template-Type: ReDIF-Article 1.0
Author-Name: Magnus Blomkvist
Author-X-Name-First: Magnus
Author-X-Name-Last: Blomkvist
Author-Name: Karl Felixson
Author-X-Name-First: Karl
Author-X-Name-Last: Felixson
Author-Name: Anders Löflund
Author-X-Name-First: Anders
Author-X-Name-Last: Löflund
Title: Third-party certification and post-IPO acquisitions
Abstract: 
 We explore the link between third-party certification (venture capital backing, analyst following and having a top underwriter), and post-IPO acquisition activity through the reduction in valuation uncertainty channel. In a sample of 2,424 U.S. IPOs, we find that third-party certification facilitates post-IPO acquisitions. The certified firms are both more likely and conduct acquisitions sooner after the IPO. Our results support the notion that third-party certification reduces post-IPO valuation uncertainty and thereby facilitates a more efficient acquisition strategy.
Journal: Applied Economics
Pages: 3436-3447
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1711509
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1711509
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3436-3447




Template-Type: ReDIF-Article 1.0
Author-Name: Davide Contu
Author-X-Name-First: Davide
Author-X-Name-Last: Contu
Author-Name: Susana Mourato
Author-X-Name-First: Susana
Author-X-Name-Last: Mourato
Author-Name: Ozgur Kaya
Author-X-Name-First: Ozgur
Author-X-Name-Last: Kaya
Title: Individual preferences towards nuclear energy: the transient residency effect
Abstract: 
 Nuclear energy is an energy source that is usually unfavourable among the public due to its inherent risks. However, it presents a number of benefits, including the possibility to reduce emissions and the contribution to tackle climate change. Among the countries adopting nuclear energy, the United Arab Emirates (UAE) is unusual in that a large share of its residents consists of expatriates who live only part of their lives in the country with no (or highly unlikely) access to citizenship. This distinctive population structure offers the opportunity to investigate the effect of transient residency on acceptance and preferences towards nuclear energy. We conducted this investigation by designing a stated preferences-based survey, targeting an online nationwide sample. The survey collected information on socio-economic characteristics and attitudes, including views on perceived risks and benefits of nuclear energy, views towards different energy sources and life satisfaction. Results indicate that transient individuals, especially those who are more satisfied with their lives in the UAE, are significantly less likely to oppose the construction of new nuclear plants. These individuals are characterized by a more positive perception of benefits over risks arising from nuclear energy. Policy implications are discussed.
Journal: Applied Economics
Pages: 3219-3237
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707766
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707766
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3219-3237




Template-Type: ReDIF-Article 1.0
Author-Name: Sabine Klinger
Author-X-Name-First: Sabine
Author-X-Name-Last: Klinger
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Secondary job holding in Germany
Abstract: 
 Since 2003, the number and ratio of multiple jobholders has more than doubled, although the German labour market has been experiencing a strong and sustained upswing. This study analyses multiple jobholding from a time series as well as a cross section perspective. We use rich register data and multinomial logit estimations. The microeconometric findings are linked to macroeconomic trends. Workers hold multiple jobs primarily because of earnings´ or hours´ constraints in the main job. Towards the upper end of the earnings distribution, the probability to have another job does not rise again. Thus, we do not find evidence that another job shall enrich the job portfolio as such. Moreover, female workers, migrants, workers in West Germany as well as in service sectors have a higher than average probability of multiple jobholding. However, the individual factors explain the rise of multiple jobholding over time to a very small extent. Hence, we argue that the far-reaching exemption of second marginal jobs from social security contributions and taxes sets wrong incentives.
Journal: Applied Economics
Pages: 3238-3256
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707767
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707767
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3238-3256




Template-Type: ReDIF-Article 1.0
Author-Name: Abdallah Othman
Author-X-Name-First: Abdallah
Author-X-Name-Last: Othman
Author-Name: Glenn P. Jenkins
Author-X-Name-First: Glenn P.
Author-X-Name-Last: Jenkins
Title: Estimation of the rate of return to capital in the East African Community (EAC) Countries
Abstract: 
 The real rate of return to capital plays a vital part in the economy in evaluating the contribution of capital investment to the economic growth. As it is also a key variable in estimating the economic opportunity cost of capital for use as the economic discount rate in investment decision-making. The objective of this study is to estimate the economic real rates of return to reproducible and remunerative capital of the EAC economies. The results indicate that the real rates of return to reproducible capital over the period 1999–2016 have averaged 10.70% in Kenya and Rwanda, while it averaged 12.05% and 9.86% in Tanzania and Uganda, respectively. With regard to the marginal rates of return to remunerative capital, the results suggest that EAC countries have averaged 16.28%, 16.21%, 15.07% and 14.49% in Tanzania, Rwanda, Kenya and Uganda, respectively, over the same period.
Journal: Applied Economics
Pages: 3257-3273
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1708255
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1708255
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3257-3273




Template-Type: ReDIF-Article 1.0
Author-Name: Nafeesa Yunus
Author-X-Name-First: Nafeesa
Author-X-Name-Last: Yunus
Title: Commonalities across commercial real estate indexes
Abstract: 
 This study analyzes the long-run relationships and short-run dynamics of four commercial real estate indexes (NAREIT, NCREIF, CoStar and Green Street Advisors) to evaluate whether evidence of commonalities can be found across these indexes or whether they exhibit divergent behaviour over time. Evaluating a period beginning January 1998 and ending in December 2016, the findings indicate that each CRE index can be characterized as stochastic data generating processes. Further, evidence of statistically significant structural break is observed within each series, approximately towards the latter part of 2008. Multivariate analyses indicate that each index is integrated with one another and with economic indicators over the long-run. Next, macroeconomic shocks are imposed on each CRE index before and after the 2007–2009 housing crisis to analyse their behaviour over the short-run. Results indicate the reaction of each index from shocks to key economic indicators is similar although the NAREIT index reacts most vigorously while the NCREIF index responds least intensely. Finally, CRE shocks are imposed on each of the macro-economic indicators to evaluate whether the CRE indexes have a reciprocal impact. The findings suggest that each of the CRE indexes has a more pronounced effect on the economic indicators with the NAREIT index inducing the strongest response.
Journal: Applied Economics
Pages: 3274-3290
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1708256
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1708256
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3274-3290




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus S. Beckmann
Author-X-Name-First: Klaus S.
Author-X-Name-Last: Beckmann
Author-Name: Daniel Huerta-Sanchez
Author-X-Name-First: Daniel
Author-X-Name-Last: Huerta-Sanchez
Author-Name: Thanh N. Ngo
Author-X-Name-First: Thanh N.
Author-X-Name-Last: Ngo
Title: REIT industry liquidity, valuation, and ownership reactions to ETF inceptions
Abstract: 
 We examine the impact of Real Estate Investment Trust (REIT) Exchange Traded Fund (ETF) inceptions on the valuation, ownership structure, and liquidity of the U.S. REIT market. We posit that the relative homogeneity and concentration of the REIT industry creates a strong interconnection among REITs, especially for events that involve a significant number of firms in the industry. Initial perusal of the data suggests that the scarce supply of REITs forces new funds to include, on average, 60% of all existing REITs in their portfolios thus shocking the industry as a result of fund creations. We find that REITs experience a significant increase in institutional ownership and in stock turnover upon ETF inceptions. Small REITs experience a positive valuation effect, a significant increase in number of shareholders, and a significant reduction in shadow cost, while large capitalization REITs experience a significant negative valuation effect. We attribute this result to portfolio rebalancing effects driven by the increased visibility and coverage of small REIT stocks as a consequence of fund inceptions. We additionally find that buy-and-hold abnormal returns are positive and significant for all REITs, suggesting a permanent impact of ETF inceptions on REIT valuations. Finally, we find that REIT ETF inceptions create permanent increases in volatility in the REIT industry.
Journal: Applied Economics
Pages: 3291-3307
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1708859
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1708859
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3291-3307




Template-Type: ReDIF-Article 1.0
Author-Name: Kevin S. Nell
Author-X-Name-First: Kevin S.
Author-X-Name-Last: Nell
Title: Evaluating the conditional convergence hypothesis in the post-1989 globalization period
Abstract: 
 This paper finds that conditional convergence in per capita incomes, as a robust empirical regularity across countries, is absent in the post-1989 globalization era. The results show that conditional convergence is subject to some initial, returns-adjusted level of education, implying that it has become more challenging for developing countries to industrialize via technology catch-up from abroad. The lack of conditional convergence, together with the increasing importance of education, complements another strand of literature that provides evidence of growth-reducing structural change, a growing technology gap due to the skill-intensive nature of manufacturing, and their link to the premature deindustrialization phenomenon observed in many developing countries since 1990. To draw an explicit link between the lack of conditional convergence in the post-1989 period and the literature on premature deindustrialization, the analysis augments a Barro-type regression with the employment shares of manufacturing, agriculture and services. The results show that raising the employment share of manufacturing relative to agriculture and, especially, services, is the most effective way to induce conditional convergence and generate faster growth in per capita income. One implication of the lack of conditional convergence is that the growth accelerations observed in many developing economies since the late-1990s may not be sustainable.
Journal: Applied Economics
Pages: 3308-3326
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710451
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710451
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3308-3326




Template-Type: ReDIF-Article 1.0
Author-Name: Artatrana Ratha
Author-X-Name-First: Artatrana
Author-X-Name-Last: Ratha
Author-Name: Masoud Moghaddam
Author-X-Name-First: Masoud
Author-X-Name-Last: Moghaddam
Title: Remittances and the Dutch disease phenomenon: evidence from the bounds error correction modelling and a panel space
Abstract: 
 Remittances have grown in size and importance. They are also among the most stable inflows of scarce foreign exchange for the developing world. While such inflows can boost economic growth, they can also appreciate domestic currency and thus, hurt exports – an unintended side effect commonly referred to as ‘the Dutch-disease phenomenon (DDP).’ This paper adds to this growing literature by applying the bounds-testing approach to co-integration/error correction, as well as the panel modelling. The DDP has been explored using a reduced form model linking remittance inflows to the real exchange rate of major remittance destinations in the world during the past three decades. While the bounds-testing approach using country-specific data, point at the paucity of the DDP generally, in the utilized panel co-integrated space, its short-run presence is mixed, though its long-run evidence is quite apparent. Indeed, using the preferred random effect model, the findings tend to suggest that a 10% increase in the remittance/GDP ratio, significantly appreciates the real exchange rate by about 0.009 units. Such a finding is also in line with the long-run results of the bounds-testing algorithm.
Journal: Applied Economics
Pages: 3327-3336
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710452
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710452
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3327-3336




Template-Type: ReDIF-Article 1.0
Author-Name: Dain Jung
Author-X-Name-First: Dain
Author-X-Name-Last: Jung
Author-Name: Do Won Kwak
Author-X-Name-First: Do Won
Author-X-Name-Last: Kwak
Author-Name: Hye-Jin Kim
Author-X-Name-First: Hye-Jin
Author-X-Name-Last: Kim
Author-Name: Minki Kim
Author-X-Name-First: Minki
Author-X-Name-Last: Kim
Title: An empirical investigation on the economic impact of shared patient information among doctors
Abstract: 
 This study investigates how an increase in patient information sharing among doctors impacts healthcare costs. To this end, we explore this impact through two mechanisms – the informative role of patient health conditions and the cross-monitoring role against doctor-driven induced healthcare demands. We utilize a unique policy intervention (a drug utilization review) introduced in 2009 in Korea that enables doctors to share outpatients’ prescription histories. Using difference-in-differences, we found that, when patient information is improved, there is a reduction in pharmaceutical spending. This result is especially true for those patients who have relatively weak information-sharing capabilities. Using data on the amount of antibiotics prescribed for the common cold, we find that a cross-monitoring of prescriptions among doctors reduces the amount of unnecessary prescriptions and thus healthcare spending.
Journal: Applied Economics
Pages: 3555-3573
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713984
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713984
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3555-3573




Template-Type: ReDIF-Article 1.0
Author-Name: Leo H. Kahane
Author-X-Name-First: Leo H.
Author-X-Name-Last: Kahane
Title: Determinants of County-Level Voting Patterns In the 2012 and 2016 Presidential Elections
Abstract: 
 County-level data are used to estimate the incumbent-party share of the two-party vote in the 2012 and the 2016 U.S. Presidential elections. Using a ‘seemingly unrelated estimation’ procedure the regression results for the two elections show that there were some clear differences in the size of marginal effects for several key covariates. For example, income inequality, the size of the black male and black female populations, the size of the Hispanic male population and percent of the population with a college degree all had significantly larger coefficients in 2016 than in 2012, producing a larger marginal effect in favour of the Democratic candidate’s vote share. On the other hand, counties with increased poverty rates and counties located on the periphery of urban centres had a significantly larger marginal effect favouring the Republican’s vote share in 2016 compared to 2012. Finally, the regression results show that the effects of third-party vote shares, though not statistically different across the two elections, had a positive impact on the Democratic vote share in both elections.
Journal: Applied Economics
Pages: 3574-3587
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713985
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713985
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3574-3587




Template-Type: ReDIF-Article 1.0
Author-Name: Jaebeom Kim
Author-X-Name-First: Jaebeom
Author-X-Name-Last: Kim
Author-Name: Jung-Min Kim
Author-X-Name-First: Jung-Min
Author-X-Name-Last: Kim
Title: Stock returns and mutual fund flows in the korean financial markets: a system approach
Abstract: 
 This paper investigates dynamic and causal relations between stock returns and mutual fund flows in Korea using a system method that utilizes information from the stock, bond, and money markets. For this purpose, we employ the Dynamic Seemingly Unrelated Regression, the Seemingly Unrelated Regression Error Correction Model, and two causality tests in a system method to account for cross-equation correlations among markets that have a close relationship with one another. Furthermore, we use the information in the variance-covariance matrix of residual to improve the efficiency of the statistical estimates. The empirical evidence from the system method indicates that fund flows do not respond to eliminate deviations from long-run equilibrium, and stock prices cause net fund flows in the Korean market, implying that investors move their money to the securities that yield higher returns to rebalance their investment portfolios in the short-run. Thus, our findings do not support the popular notion of mutual fund flows as the driving force behind rallies in the Korean financial markets.
Journal: Applied Economics
Pages: 3588-3599
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713986
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713986
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3588-3599




Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Pei-Chi Lii
Author-X-Name-First: Pei-Chi
Author-X-Name-Last: Lii
Author-Name: Fu-Wei Huang
Author-X-Name-First: Fu-Wei
Author-X-Name-Last: Huang
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Title: The linkage between life insurer spread behaviour and credit swap transaction: policyholder protection analysis
Abstract: 
 The paper develops a contingent claim model to evaluate the equity of a life insurer when the insurer could act as a protection buyer or a protection seller in a credit swap transaction market. The investment market and the life insurance market faced by the insurer are assumed to be imperfectly competitive in order to capture the insurer’s asset-leading or liability-reducing spread behaviour. This paper complements the insurance literature by analysing how the effects of credit swap transactions on insurer spread behaviour and policyholder protection, and how they might differ across various degrees of capital regulation, premature default risk, and profit-sharing participation. Our findings offer some useful insights for achieving the stability of the insurance system.
Journal: Applied Economics
Pages: 3600-3613
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1715337
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1715337
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3600-3613




Template-Type: ReDIF-Article 1.0
Author-Name: Chenxin Leng
Author-X-Name-First: Chenxin
Author-X-Name-Last: Leng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Jianjun Tang
Author-X-Name-First: Jianjun
Author-X-Name-Last: Tang
Author-Name: Zhongkun Zhu
Author-X-Name-First: Zhongkun
Author-X-Name-Last: Zhu
Title: ICT adoption and income diversification among rural households in China
Abstract: 
 Although the determinants of income diversification have been widely examined in the literature, little is known about whether and how information and communication technology (ICT) adoption affects household income diversification. To fill in this gap, this paper examines the impact of ICT adoption on income diversification among rural households in China, utilizing open-access data collected through the China Labour-force Dynamics Survey project. We employ a two-stage treatment effects model to address the potential selection bias issue associated with ICT adoption. The empirical results show that ICT adoption exerts a positive and statistically significant impact on income diversification. Further analyses reveal that ICT adoption is more beneficial to low-income rural households and those residing in eastern and central parts of China when it plays a role in diversifying rural income. Our findings suggest that improving rural education and infrastructure such as roads and broadband facilities can help enhance ICT adoption among rural households, which subsequently increases income diversification.
Journal: Applied Economics
Pages: 3614-3628
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1715338
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1715338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3614-3628




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Fehim Cebeci
Author-X-Name-First: Ali Fehim
Author-X-Name-Last: Cebeci
Author-Name: Huseyin Ince
Author-X-Name-First: Huseyin
Author-X-Name-Last: Ince
Author-Name: Murat Anil Mercan
Author-X-Name-First: Murat Anil
Author-X-Name-Last: Mercan
Title: The intrinsic fallacy of market mechanism and private property rights in alleviating the tragedy of the commons
Abstract: 
 Economists’ solution to the tragedy of the commons relies on well-defined property rights and competitive market mechanism for limiting individuals’ self-serving, short-sighted actions that result in a dramatic depletion of the common resources. However, this solution implicates a serious threat in terms of sustainability. Recently, deterioration of genetic diversity reached alarming levels, mainly attributed to escalating economic pressure that obliges farmers to shift from local breeds towards more profitable and more productive industrial breeds. This study empirically examines the efficiency of the free market mechanism as a solution to the tragedy of the commons through a unique natural experiment in which a huge demand shock arises regarding sheep. Results robustly show that the free market mechanism can cope with even a very challenging demand shock through the adjustment of prices without any shortage of the commodity. However, this finding does not guarantee that such an outcome is sustainable over the very long term. Analysis of the growth rate of the local sheep breeds population and cross-breed sheep population shows that the trend is overwhelmingly in favour of cross-breeds, thus supporting concerns for a free market mechanism, intrinsically driving the extinction of local sheep breeds, an invaluable genetic resource.
Journal: Applied Economics
Pages: 3629-3636
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1716938
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1716938
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3629-3636




Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Abinzano
Author-X-Name-First: Isabel
Author-X-Name-Last: Abinzano
Author-Name: Luis Muga
Author-X-Name-First: Luis
Author-X-Name-Last: Muga
Author-Name: Rafael Santamaria
Author-X-Name-First: Rafael
Author-X-Name-Last: Santamaria
Title: The role of small bettors in price formation in betting exchanges
Abstract: 
 The presence of small bettors in betting exchanges generates mispricing, which can lead to exploitation by informed traders or result in permanent price deviations. This paper shows that mispricing from this source is also dependent upon variables of established relevance such as tournament round, the level of attention to the event, the volume of the betting, and bet type, further confirming these findings by means of cumulative accuracy profile (CAP) curves. It also offers evidence of the relevant role played by the type of device used to place the bet, whereby higher mispricing is observed in live bets placed via a mobile device, which appears to be associated with impulsive betting. This last finding could have practical implications for the regulation of the use of mobile devices to access gambling platforms.
Journal: Applied Economics
Pages: 3637-3650
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1717427
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1717427
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3637-3650




Template-Type: ReDIF-Article 1.0
Author-Name: Yacine Hammami
Author-X-Name-First: Yacine
Author-X-Name-Last: Hammami
Title: Asset pricing in an Islamic economy
Abstract: 
 We define an Islamic economy as one with borrowing restrictions, no leverage, and no risk-free asset. We derive a consumption-based asset pricing model for this economy under standard preferences. We demonstrate that news to consumption growth is the main driver of Islamic financial markets, but the degree of borrowing constraints also affects the pricing of Islamic assets. Using Saudi Arabian data, simulations show that our model does a good job in matching the observed equity premium as well as the volatility of the market return. Our model implies that the price-dividend ratio predicts dividend growth, and as a result that prices are driven mainly by cash-flow news rather than by discount rate news. Empirical tests show that our model is consistent with the data.
Journal: Applied Economics
Pages: 3106-3122
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1706715
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1706715
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3106-3122




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Min Chun
Author-X-Name-First: Hong Min
Author-X-Name-Last: Chun
Author-Name: Grace Il-Joo Kang
Author-X-Name-First: Grace Il-Joo
Author-X-Name-Last: Kang
Author-Name: Sang Ho Lee
Author-X-Name-First: Sang Ho
Author-X-Name-Last: Lee
Author-Name: Yong Keun Yoo
Author-X-Name-First: Yong
Author-X-Name-Last: Keun Yoo
Title: Corporate tax avoidance and cost of equity capital: international evidence
Abstract: 
 This study examines the association between firm’s tax avoidance activities and cost of equity capital across 17 countries. Consistent with the prior study based on the U.S. evidence, within strong investor protection countries, the extent of firm’s tax avoidance is negatively associated with its cost of equity capital. This result indicates that strong investor protection induces investors to perceive firm’s tax avoidance activities as the results of efficient tax planning to reduce tax liabilities. To the contrary, we find that the extent of firm’s tax avoidance is positively associated with its cost of equity capital within weak investor protection countries. This result suggests that investors impose equity risk premium on firm’s tax avoidance activities in weak investor protection countries, where agency conflicts prevail more on firm’s tax avoidance activities. As the first international study on the association between firm’s tax avoidance activities and its cost of equity capital, this study contributes to the literature by suggesting that such an association may vary across countries depending on the strength of investor protection within each country of domicile.
Journal: Applied Economics
Pages: 3123-3137
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1706716
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1706716
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3123-3137




Template-Type: ReDIF-Article 1.0
Author-Name: Metin Özdemir
Author-X-Name-First: Metin
Author-X-Name-Last: Özdemir
Title: The role of exchange rate in inflation targeting: the case of Turkey
Abstract: 
 The role of the exchange rates in emerging market economies that have adopted inflation targeting (IT) is a critical and contentious issue in the relevant literature. This article investigates whether an exchange rate-augmented Taylor rule describes the Central Bank of Republic of Turkey’s (CBRT) monetary policy. Covering the period from 2002:1 to 2017:8 it also explores possible nonlinearities in the reaction function of the CBRT by employing a Threshold Vector Autoregressive (TVAR) model. The linear estimation of the model highlighted the importance of the exchange rate in monetary policy under IT. The results of the nonlinear model indicate that the stance of monetary policy was asymmetric with respect to exchange rate movements during the conventional IT period. However, the asymmetric monetary policy stance disappeared in the aftermath of the Global Financial Crisis. Increasing considerations of financial stability undermined the asymmetric policy stance of the CBRT in the post-crisis period.
Journal: Applied Economics
Pages: 3138-3152
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1706717
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1706717
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3138-3152




Template-Type: ReDIF-Article 1.0
Author-Name: Kai Zhao
Author-X-Name-First: Kai
Author-X-Name-Last: Zhao
Author-Name: Mary O’Mahony
Author-X-Name-First: Mary
Author-X-Name-Last: O’Mahony
Author-Name: Amir Qamar
Author-X-Name-First: Amir
Author-X-Name-Last: Qamar
Title: Bridging the gap in creative economy and ICT research: a regional analysis in Europe
Abstract: 
 Following Florida’s seminal work on the ‘creative class’ there is a great deal of interest concerning whether creativity, as an input, is important for regional growth. Answering this question requires developing a production framework that can distinguish creativity from other inputs. With data from Europe, this paper integrates the concept of information and communications technology (ICT) and the creative class into a theoretical production function. Findings reveal that not only is there a positive and interactive relationship between creative workers and ICT, but the combination of creative workers and ICT leads to higher levels of GVA growth. Moreover, creative workers were found to have a larger impact on growth in comparison with traditional human capital measures (i.e. graduates). Thus, findings from this research suggest that the creative class should not only pay attention to socio-economic preferences of individuals, but it must include wider social resources, such as ICT.
Journal: Applied Economics
Pages: 3153-3166
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1706718
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1706718
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3153-3166




Template-Type: ReDIF-Article 1.0
Author-Name: Yinghua Ren
Author-X-Name-First: Yinghua
Author-X-Name-Last: Ren
Author-Name: Qing Guo
Author-X-Name-First: Qing
Author-X-Name-Last: Guo
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Wanming Ying
Author-X-Name-First: Wanming
Author-X-Name-Last: Ying
Title: The effects of economic policy uncertainty on China’s economy: evidence from time-varying parameter FAVAR
Abstract: 
 This article explores the effects of China’s economic policy uncertainty (EPU) on its fiscal policy, monetary policy and a wide range of macro-economic variables using a time-varying parameter FAVAR model. Based on monthly data from 07/2003 to 08/2017, the time-varying structure of the model allows us to capture the time-varying characteristics of the macro-economic variables and which channel is relevant. Empirical results reveal that the reaction of monetary and fiscal policies to EPU is highly asymmetric across macro-economic circumstances. Loose monetary and fiscal policies are adopted in response to EPU shocks during the financial crisis, while policies are moderately tightened after the crisis. The China Interbank Offered Rate (Chibor) responds more sensitively and severely than M2 to EPU shocks. Additionally, EPU shocks have a significant and negative impact on economic growth, consumption, exchange rates, bonds and the stock market, but showing a positive impact on credit, real estate and fixed asset investment (which might be due to China’s special economic market environment and the high investment return). The results indicate that EPU shocks significantly affect macroeconomic fundamentals through precautionary savings and financial market channels but lose their effectiveness through a ‘real options’ effect.
Journal: Applied Economics
Pages: 3167-3185
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707475
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707475
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3167-3185




Template-Type: ReDIF-Article 1.0
Author-Name: Neil Lawton
Author-X-Name-First: Neil
Author-X-Name-Last: Lawton
Author-Name: Liam A. Gallagher
Author-X-Name-First: Liam A.
Author-X-Name-Last: Gallagher
Title: The negative side of inflation targeting: revisiting inflation uncertainty in the EMU
Abstract: 
 This article tests the Friedman–Ball hypothesis for the European Monetary Union (EMU) countries, using a GARCH methodology. The empirical results show a positive relationship between inflation and inflation uncertainty, largely supportive of the Friedman–Ball hypothesis. Furthermore, the ECB’s price stability mandate is found to have asymmetric, if not limited, effects on inflation uncertainty since 1999, with the findings different for the so-called peripheral countries when compared to the core. For the majority of the EMU countries, shifts away from the 2% target served to increase inflation uncertainty. The credibility of the ECB since the financial crisis, in attempting to meet its 2% inflation target has seen inflation uncertainty increase for some, likely driven by inflation failing to re-anchor. Furthermore, recent periods of deflation are found to generate inflation uncertainty, with short-term price variability increasing in line with observed negative price growth for the majority of the EMU countries. The results are supportive of a U-shaped relationship between inflation and inflation uncertainty. Using spline techniques, we formally provide support for such a U-shaped relation where inflation uncertainty broadly increases below a certain threshold for each country’s inflation rate. Asymmetric effects across countries are found in the level of this threshold.
Journal: Applied Economics
Pages: 3186-3203
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707764
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707764
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3186-3203




Template-Type: ReDIF-Article 1.0
Author-Name: Petr Janský
Author-X-Name-First: Petr
Author-X-Name-Last: Janský
Title: The costs of tax havens: evidence from industry-level data
Abstract: 
 Multinational enterprises make use of tax havens to avoid paying corporate income taxes and this costs 100 billion USD and more in lost government revenue worldwide according to an increasing number of recent studies. None of those studies assigns these costs to industries. I aim to shed more light on this gap by using some of the best available industry-level US data to determine to what extent the location of the MNEs’ profit is aligned with the location of their economic activities. My first finding is that the most important tax havens for US multinational enterprises are the Netherlands, Ireland and Luxembourg (all EU member states). Second, I systematically identify the specific industries in specific tax havens responsible for the costs, which should be useful information for tax authorities aiming to reduce tax avoidance. Finally, I argue that the current data are not detailed enough to provide a reliable industry breakdown of the costs, but the prospect of combining input-output tables with forthcoming country-by-country data seems more promising.
Journal: Applied Economics
Pages: 3204-3218
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707765
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707765
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3204-3218




Template-Type: ReDIF-Article 1.0
Author-Name: Li Liu
Author-X-Name-First: Li
Author-X-Name-Last: Liu
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: Qing Zeng
Author-X-Name-First: Qing
Author-X-Name-Last: Zeng
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Title: Forecasting the aggregate stock market volatility in a data-rich world
Abstract: 
 In this article, we utilize the basic lasso and elastic net models to revisit the predictive performance of aggregate stock market volatility in a data-rich world. Motivated by the existing literature, we determine several candidate predictors that have 22 technical indicators and 14 macroeconomic and financial variables. Our out-of-sample results reveal several noteworthy findings. First, few macroeconomic and financial variables and most of technical indicators have superior performance relative to the benchmark model. Second, combination forecasts are able to significantly beat the benchmark and some signal predictors Third, the lasso and elastic models with all predictors can generate more accurate forecasts than the benchmark and some other predictors in both the statistical and economic sense. Fourth, the lasso and elastic models exhibit higher forecast accuracy during periods of expansions and recessions. Finally, our findings are robust to several tests, such as different forecasting windows, forecasting models, and forecasting evaluations.
Journal: Applied Economics
Pages: 3448-3463
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713291
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713291
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3448-3463




Template-Type: ReDIF-Article 1.0
Author-Name: Juerg Schweri
Author-X-Name-First: Juerg
Author-X-Name-Last: Schweri
Author-Name: Annina Eymann
Author-X-Name-First: Annina
Author-X-Name-Last: Eymann
Author-Name: Manuel Aepli
Author-X-Name-First: Manuel
Author-X-Name-Last: Aepli
Title: Horizontal mismatch and vocational education
Abstract: 
 Recent literature suggests that vocational education and training (VET) provides individuals with smoother transitions into the labour market but lower wages over the lifecycle, compared to general education. A possible mechanism explaining lower wages is horizontal mismatch, defined as a mismatch between the type of qualifications acquired by individuals and those required for their current job. Some studies have found higher mismatch wage penalties when individuals’ education is more specific, suggesting higher penalties for workers with VET. Therefore, we analyse horizontal mismatch in Switzerland, the country with the highest proportion of firm-based VET in the OECD. We use two measures from the Swiss Household Panel that cover different aspects of horizontal mismatch. While we find sizable mismatch wage penalties in OLS estimations, effects are small or insignificant in fixed-effects regressions. This holds for workers with vocational and general education background alike. We conclude that VET is more transferable than often assumed. We finish with recommendations on concept and methods for future analyses of horizontal mismatch.
Journal: Applied Economics
Pages: 3464-3478
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713292
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713292
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3464-3478




Template-Type: ReDIF-Article 1.0
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Author-Name: Muhammed Shahbaz
Author-X-Name-First: Muhammed
Author-X-Name-Last: Shahbaz
Author-Name: Mubariz Hasanov
Author-X-Name-First: Mubariz
Author-X-Name-Last: Hasanov
Title: Testing PPP hypothesis under temporary structural breaks and asymmetric dynamic adjustments
Abstract: 
 We test the empirical validity of the PPP proposition under temporary structural breaks and dynamic nonlinear adjustments. Although several testing procedures have recently been proposed in the existing literature to investigate stochastic properties of the series under gradual breaks and nonlinear adjustments, none of these tests are compatible with the PPP proposition. Therefore, we propose new testing procedures that restrict the break to be temporary while simultaneously allowing for asymmetric dynamic nonlinear adjustment towards equilibrium. Using these newly proposed tests, we test stationarity of real exchange rate of 24 OECD countries vis-à-vis USA, and find support in favour of PPP proposition in majority of the countries.
Journal: Applied Economics
Pages: 3479-3497
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713293
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713293
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3479-3497




Template-Type: ReDIF-Article 1.0
Author-Name: Gnel Gabrielyan
Author-X-Name-First: Gnel
Author-X-Name-Last: Gabrielyan
Author-Name: David R. Just
Author-X-Name-First: David R.
Author-X-Name-Last: Just
Title: Economic shocks and lottery sales: an examination of Maine State lottery sales
Abstract: 
 Most U.S. states earn significant amount of revenues from lottery sales. However, they are also criticized for promoting the lotteries because they have been seen as taking advantage of poor populations. The purpose of this study is to identify the impact of various economic factors on lottery sales by using zip-code level sales within the state of Maine. The results show that an increase of 1% in unemployment rate results in a 0.38% increase in draw lottery sales, but it has no significant impact on instant lottery sales. This highlights the importance of differentiating between two major types of lotteries.
Journal: Applied Economics
Pages: 3498-3511
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713294
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713294
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3498-3511




Template-Type: ReDIF-Article 1.0
Author-Name: Roula Inglesi-Lotz
Author-X-Name-First: Roula
Author-X-Name-Last: Inglesi-Lotz
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Author-Name: Majdi Karmani
Author-X-Name-First: Majdi
Author-X-Name-Last: Karmani
Author-Name: Rim Boussaada
Author-X-Name-First: Rim
Author-X-Name-Last: Boussaada
Title: Threshold effects in the patent-growth relationship: a PSTR approach for 60 developed and developing countries
Abstract: 
 This study analyzes whether there is a threshold effect in the innovation-growth relationship. Using data from the period 2008–2017, we perform an analysis using 60 countries in the whole sample and a split-sample analysis in which we separate developed countries (36) from developing countries (24). The results for the panel smooth transition regression (PSTR) model indicate that there is a threshold effect in the innovation-growth relationship. We find that below the threshold, the effect of innovation measured by the number of patents is not significant for developed and developing countries. However, surpassing the optimal threshold, the effect becomes positive only for the whole sample and developed countries. Furthermore, findings also indicate that research and development expenditure, domestic and foreign investments stimulate economic growth.
Journal: Applied Economics
Pages: 3512-3524
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713295
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713295
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3512-3524




Template-Type: ReDIF-Article 1.0
Author-Name: Tong Fu
Author-X-Name-First: Tong
Author-X-Name-Last: Fu
Author-Name: Zhongmei Wei
Author-X-Name-First: Zhongmei
Author-X-Name-Last: Wei
Author-Name: Ze Jian
Author-X-Name-First: Ze
Author-X-Name-Last: Jian
Title: The persistent institutional effect of liberal colonialism: evidence from China’s financial policies
Abstract: 
 The effect of liberal colonialism on the allocation of capital persists to this day. We exploit the colonial history of China during 1896-1911 with qualitative evidence to measure liberal colonialism. We document that liberal colonialism promotes the subsequent efficiency of financial policies on the capital allocation in 2004 through the quality of economic institutions.
Journal: Applied Economics
Pages: 3525-3537
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713296
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713296
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3525-3537




Template-Type: ReDIF-Article 1.0
Author-Name: Biyan Tang
Author-X-Name-First: Biyan
Author-X-Name-Last: Tang
Author-Name: Boniface Yemba
Author-X-Name-First: Boniface
Author-X-Name-Last: Yemba
Author-Name: Dongfeng Chang
Author-X-Name-First: Dongfeng
Author-X-Name-Last: Chang
Title: Divisia monetary aggregates and US GDP nowcasting
Abstract: 
 This article nowcasts US quarterly real GDP growth rate with dynamic factor model (DFM) using Divisia Monetary Aggregate Index, Divisia M1, M2, M3, and exploits information from a large, unbalanced panel data. GDP nowcasting is evaluating the current quarter GDP given the available economic data up to the point when the nowcasting is conducted. GDP data is published quarterly with a substantial lag, while many monetary and financial decisions are made at a higher frequency. Therefore, nowcasting GDP has become an increasingly important task for central banks. This article uses DFM to nowcast GDP, compares the nowcasting results from DFM with the simple sum monetary aggregate M1, M2, M3, to the Model with weighted corresponding Divisia Index, then calculates the contributions of the Divisia Monetary index to US GDP nowcasting.
Journal: Applied Economics
Pages: 3538-3554
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713983
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713983
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3538-3554




Template-Type: ReDIF-Article 1.0
Author-Name: André Gal Mountian
Author-X-Name-First: André Gal
Author-X-Name-Last: Mountian
Author-Name: Maria Dolores Montoya Diaz
Author-X-Name-First: Maria Dolores
Author-X-Name-Last: Montoya Diaz
Title: Effects of retirement on the health of elderly people in São Paulo, Brazil
Abstract: 
 This article assessed the effects of retirement on the health of elderly people living in São Paulo, the most populous Brazilian city, from 2000 to 2010. In the context of population ageing, the effects of retirement on the health of elderly people must be understood. Data on elderly people from the municipality of São Paulo were retrieved from the longitudinal database Health, Wellbeing and Ageing Study (SABE). Fixed-effect and instrumental-variable fixed-effect models were estimated to consider the possible simultaneity between the decision to retire and the health status of individuals. The results showed that retirement improves overall health and mobility of men, especially of less-educated workers. This finding suggests that setting a minimum retirement age in Brazil, which will postpone retirement, may worsen the health status of older workers, thereby increasing National Health Service costs. Therefore, this subject must be incorporated into the debates on pension reform in Brazil. In addition, and more generally, this article aims to contribute to the literature by investigating this issue in a developing country.
Journal: Applied Economics
Pages: 2991-3003
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1697797
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1697797
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:2991-3003




Template-Type: ReDIF-Article 1.0
Author-Name: Franz Ruch
Author-X-Name-First: Franz
Author-X-Name-Last: Ruch
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mampho P. Modise
Author-X-Name-First: Mampho P.
Author-X-Name-Last: Modise
Title: Forecasting core inflation: the case of South Africa
Abstract: 
 Underlying, or core, inflation is likely the most important variable for monetary policy. It is considered to be the optimal nominal anchor as it is stable, excludes relative price shocks, and reflects underlying trends in the behaviour of price-setters and demand conditions in the economy. Despite its importance, there is sparse literature on estimating and forecasting core inflation in South Africa, with the focus still on measuring it. This paper emphasizes predicting core inflation from time-varying parameter vector autoregressive models (TVP-VARs), factor-augmented VARs (FAVAR), and structural break models using quarterly data from 1981Q1 to 2013Q4. We use mean squared forecast errors (MSFE) and predictive likelihoods to evaluate the forecasts. In general, we find that (i) time-varying parameter models consistently outperform constant coefficient models (ii) small TVP-VARs outperform all other models; (iii) models with heteroscedastic errors do better than models with homoscedastic errors; and (iv) allowing for structural breaks does not improve the predictability of core inflation. Overall, our results imply that additional information on the growth rate of the economy and the interest rate is sufficient to forecast core inflation accurately, but the relationship between these three variables needs to be modelled in a time-varying fashion.
Journal: Applied Economics
Pages: 3004-3022
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1701181
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1701181
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3004-3022




Template-Type: ReDIF-Article 1.0
Author-Name: Manuel Jaén-García
Author-X-Name-First: Manuel
Author-X-Name-Last: Jaén-García
Title: Tax-spend, spend-tax, or fiscal synchronization. A wavelet analysis
Abstract: 
 In this article, we use wavelet methodology to analyse the long-term relationship between spending and taxes. Unlike the standard methodology that utilizes unit roots and cointegration with or without structural breaks, the present method makes it possible to know the long-term evolution of variables (time series) and the possible delay or advance between these variables. Although we limited ourselves to studying the most recent period of 1980–2015, the results obtained reveal various alternatives and nearly perfect synchronization, with revenues perhaps slightly leading spending, which may be the result of recent budget restrictions instated in response to the economic recession.
Journal: Applied Economics
Pages: 3023-3034
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705238
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705238
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3023-3034




Template-Type: ReDIF-Article 1.0
Author-Name: Emily McDool
Author-X-Name-First: Emily
Author-X-Name-Last: McDool
Title: Ability grouping and children’s non-cognitive outcomes
Abstract: 
 The value of ability grouping is often debated despite being adopted in primary and secondary schools across the UK for the past 80 years. Setting is one form of ability grouping which is widely implemented in English schools; it involves dividing pupils from the same cohort into classes according to ability in a specific subject. While the existing evidence identifies a negative effect on cognitive outcomes, especially for low-ability pupils, little research has been undertaken to understand the impact of setting on non-cognitive outcomes. This paper provides the first evidence of the effect of setting on non-cognitive outcomes when utilizing a nationally representative sample of primary-aged pupils and adopting fixed effects and instrumental variable methodologies. For boys, setting in maths negatively impacts non-cognitive outcomes, driven by a worsening of internalizing behaviours. No evidence of a significant impact of lowest set placement on non-cognitive outcomes is identified.
Journal: Applied Economics
Pages: 3035-3054
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705239
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705239
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3035-3054




Template-Type: ReDIF-Article 1.0
Author-Name: Satish Kumar
Author-X-Name-First: Satish
Author-X-Name-Last: Kumar
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: I. D. Raheem
Author-X-Name-First: I. D.
Author-X-Name-Last: Raheem
Author-Name: Qiang Ji
Author-X-Name-First: Qiang
Author-X-Name-Last: Ji
Title: Dependence risk analysis in energy, agricultural and precious metals commodities: a pair vine copula approach
Abstract: 
 We apply pair vine copulas, specifically the C-vine and R-vine copulas, to examine the conditional multivariate dependence pattern/structure and R-vine copula-based value-at-risk (VaR) to assess financial portfolio risk. We examine the co-dependencies of 13 major commodity markets (which include three energy commodities, six agricultural commodities and four precious metals prices) from 2 January 2003 to 19 December 2016. Dividing our sample into three sub-periods, namely pre-GFC, GFC and post-GFC, we find that the dependencies among commodities undergo changes in a complex manner, changing in different financial conditions, and that the Student-t copula appears on the maximum number of occasions, especially during the GFC period, signifying the existence of fatter tails in the distributions of returns. We further show that the co-dependencies computed using R-vine copulas are best suited to compute the portfolio VaR during the considered time period.
Journal: Applied Economics
Pages: 3055-3072
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705240
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705240
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3055-3072




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Hanck
Author-X-Name-First: Christoph
Author-X-Name-Last: Hanck
Author-Name: Jan Prüser
Author-X-Name-First: Jan
Author-X-Name-Last: Prüser
Title: House prices and interest rates: Bayesian evidence from Germany
Abstract: 
 This study uses a Bayesian VAR (BVAR) to demonstrate that the recent boom in German house prices can be explained by falling interest rates and that higher interest rates are likely sufficient to stop the price increase. The latter suggests a potential drawback of the current monetary policy of the ECB. The BVAR’s prior information shrinks the model parameters towards a parsimonious benchmark in order to avoid overfitting the data. We use an empirical Bayes approach to select the informativeness of the prior. To choose relevant control variables, we use a Bayesian variable selection approach. In addition to impulse responses and variance decompositions, we use a Bayesian conditional forecast to test the hypothetical effect of an interest rate increase on house prices.
Journal: Applied Economics
Pages: 3073-3089
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705242
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705242
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3073-3089




Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Cantabene
Author-X-Name-First: Claudia
Author-X-Name-Last: Cantabene
Author-Name: Iacopo Grassi
Author-X-Name-First: Iacopo
Author-X-Name-Last: Grassi
Title: R&D cooperation in SMEs: the direct effect and the moderating role of human capital
Abstract: 
 We analyse the determinants of R&D cooperation for SMEs in Italy. We introduce in the literature human capital as one of the main determinants of R&D cooperation, concentrating on its moderating role, and specifically focusing on the high-tech sector. Using an extremely rich dataset, we improve the literature, building robust explanatory variables, and disaggregating the cooperation by partner. We find that human capital facilitates cooperation, but its moderating role depends on the type of disaggregation and/or the partner.
Journal: Applied Economics
Pages: 3090-3105
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705243
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705243
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3090-3105




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Baltas
Author-X-Name-First: Nicholas
Author-X-Name-Last: Baltas
Author-Name: Mike G. Tsionas
Author-X-Name-First: Mike G.
Author-X-Name-Last: Tsionas
Author-Name: Konstantinos Baltas
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Baltas
Title: Foreign direct investment in OECD countries: a special focus in the case of Greece
Abstract: 
 Foreign Direct Investment (FDI) is considered as an important instrument for economic development all over the world. The aim of this paper is to examine the FDI inflows determinants for 24 OECD countries.  To this end we employ annual data from 1980 to 2012 for a series of potential FDI determinants that have been identified as the most important by the relevant literature. Our empirical strategy employs both the standard fixed effects panel as well as a dynamic panel approach. The empirical findings highlight the importance of market size, trade openness, unit labor cost, schooling, taxation, gross capital formation, institutional variables, and ROA/ROE as significant FDI determinants. In the case of the dynamic panel model those FDI inflows determinants are not uniform for all country groups. Additionally, the results indicate that corporate tax rates clearly affect FDI attractiveness. This finding is robust when testing different countries subgroups. The present study has important policy implications indicating the factors that host economies should place emphasis on in order to attract FDI inflows. Policy makers should not only pay attention to the corporate tax rate level but they should also design a simple, stable and transparent taxation system that minimizes the relevant business risk.
Journal: Applied Economics
Pages: 5579-5591
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488054
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488054
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5579-5591




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Author-Name: Hai Lin
Author-X-Name-First: Hai
Author-X-Name-Last: Lin
Author-Name: Ping-Wen Sun
Author-X-Name-First: Ping-Wen
Author-X-Name-Last: Sun
Author-Name: Bin Yu
Author-X-Name-First: Bin
Author-X-Name-Last: Yu
Title: A reliable performance measure to differentiate China’s actively managed open-end equity mutual funds
Abstract: 
 We compare different fund performance measures to examine which performance measures can generate risk-adjusted returns between high ranked and low ranked China’s actively managed open-end equity mutual funds. Our results show that only the six-factor (five factors (market, size, b/m, profitability & Investment facotrs) plus a momentum factor) alpha as the performance measure meets the criteria. Separated by the six-factor alpha, better performing funds have a larger asset under management, a better past 6-month cumulative return, a better stock picking ability, and a higher percentage of hybrid funds. Through our sample period from July 2004 to December 2015, the highest ranked quintile funds generate a monthly risk-adjusted return of 0.24% more than the lowest ranked quintile funds and the six-factor alpha reliably selects a better fund portfolio in both bear and bull markets on the basis of both fund return and holding data. Furthermore, our results from fund trading data show that funds with the highest six-factor alpha rank demonstrate a better trading skill in bear markets, suggesting that those better performing funds exhibit their market timing and stock picking abilities when investors need them most.
Journal: Applied Economics
Pages: 5592-5603
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488055
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488055
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5592-5603




Template-Type: ReDIF-Article 1.0
Author-Name: Hsien-Yi Chen
Author-X-Name-First: Hsien-Yi
Author-X-Name-Last: Chen
Author-Name: Shu-Ling Yang
Author-X-Name-First: Shu-Ling
Author-X-Name-Last: Yang
Title: Contagion effects of sovereign credit rating revisions on the real economy: is it trade or finance?
Abstract: 
 We analyse the contagion effects of sovereign credit rating revisions on the real economy, with particular emphasis on the intensity of trade and finance channels. Our findings show that event countries that experienced rating revisions cause substantial contagion effects on the real output growth rates of nonevent countries. Nonevent countries with a high export ratio, high external debt levels, or those that are more dependent on common bank credit relative to other nonevent countries are more likely to be infected by event countries’ adverse credit shocks. The results remain after accounting for alternative real economy indicators, financial liberalization, financial crises, and economic development status.
Journal: Applied Economics
Pages: 5604-5619
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488056
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488056
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5604-5619




Template-Type: ReDIF-Article 1.0
Author-Name: Gregmar I. Galinato
Author-X-Name-First: Gregmar I.
Author-X-Name-Last: Galinato
Author-Name: You Zhou
Author-X-Name-First: You
Author-X-Name-Last: Zhou
Title: How a race to the bottom can make you fat
Abstract: 
 This article measures the effect of fiscal competition on obesity rates in the United States through education and health spending. We hypothesize that fiscal competition to attract firms results in lower business tax revenues and higher public infrastructure spending which crowds out education and health spending leading to an increase in obesity rates. We empirically test this hypothesis. We find that there is significant fiscal competition to attract firms. Next, we show that when business tax revenues are lowered and public infrastructure spending favouring businesses increased, public health and education spending declines and obesity rates significantly increase. Thus, fiscal competition significantly contributes to obesity rates through the education and health spending channel.
Journal: Applied Economics
Pages: 5620-5640
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488058
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488058
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5620-5640




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Amatul Razzaq Chaudhary
Author-X-Name-First: Amatul Razzaq
Author-X-Name-Last: Chaudhary
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Title: Is energy consumption sensitive to foreign capital inflows and currency devaluation in Pakistan?
Abstract: 
 This study investigates the relationship between foreign capital inflows and energy consumption by incorporating economic growth, exports and currency devaluation in energy demand function for the case of Pakistan. The long-run and short-run effects are examined via ARDL bounds testing procedure. Foreign capital inflows and currency devaluation (economic growth and exports) decrease (increase) energy consumption in long-run. The results confirm a feedback effect between foreign capital inflows and energy consumption. These findings would be helpful to policy makers in designing comprehensive economic and energy policies for utilizing foreign capital inflows as a tool for optimal use of energy sources to enhance economic development in long run.
Journal: Applied Economics
Pages: 5641-5658
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488059
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488059
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5641-5658




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Wilson
Author-X-Name-First: Nicholas
Author-X-Name-Last: Wilson
Title: Targeted characteristics and use of socially marketed preventive health goods: evidence from condoms in sub-Saharan Africa
Abstract: 
 Social marketing is a popular method for allocating targeted publicly funded preventive health goods in poor countries. However, low demand among targeted groups may inhibit take-up relative to non-targeted groups, ownership may not result in use, and there exists little large-scale evidence on how use of socially marketed goods varies by targeted characteristics. I assemble national household survey data from 27 sub-Saharan African countries to examine how use of one of the most common socially marketed preventive health goods (i.e. male condoms) varies by the main targeted characteristics (i.e. low income, low educational attainment, and high HIV risk).The results suggest that the majority of condoms used are socially marketed condoms, engaging in transactional sex is associated with an increased likelihood of using a socially marketed condom brand, and low-income/low educational attainment are not associated with increased likelihoods of using socially marketed brands. The fact that distribution targets low socioeconomic status groups and relative use remains low suggests that weak demand for condoms among these groups inhibits use. Policymakers should consider mechanisms to increase demand and to further refine targeting efforts.
Journal: Applied Economics
Pages: 5659-5671
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488060
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488060
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5659-5671




Template-Type: ReDIF-Article 1.0
Author-Name: Kurt A. Hafner
Author-X-Name-First: Kurt A.
Author-X-Name-Last: Hafner
Author-Name: Lennart Kampe
Author-X-Name-First: Lennart
Author-X-Name-Last: Kampe
Title: Monetary union in Latin America: an assessment in the context of optimum currency area
Abstract: 
 The article applies the optimum currency area (OCA) theory to Latin America to assess the potential of a monetary union in Latin America and in its major existing regional trade agreements (RTAs). According to OCA criteria we find that Latin America is far from being an optimum currency area, as its countries’ exposure to asymmetric shocks is high and their capacities to adjust in response to macroeconomic disturbances are limited. Using a panel of 20 Latin American countries from 1990 to 2014, we apply the dynamic OLS estimation techniques to estimate the costs and benefits of a potential monetary union in Latin America and in its various RTAs. to estimate the costs and benefits of a potential monetary union in Latin America and in its various RTAs. We find that the costs are high, because Latin America’s economies are vulnerable to severe macroeconomic disturbances and its RTAs differ significantly in their response to negative demand shocks. Most of the monetary efficiency gains are shown to be the result of a common restrictive monetary policy which would result in higher FDI inflows and, to a more limited extent, increased GDP, both overall and per capita. Although Central American countries are shown to be most suitable for further monetary integration, we conclude that Latin American countries should head first towards greater economic and political integration.
Journal: Applied Economics
Pages: 5672-5697
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1489116
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489116
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5672-5697




Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Mabruk Billah
Author-X-Name-First: Mabruk
Author-X-Name-Last: Billah
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Russell Gregory-Allen
Author-X-Name-First: Russell
Author-X-Name-Last: Gregory-Allen
Title: Economic uncertainties, macroeconomic announcements and sukuk spreads
Abstract: 
 With the large expansion of Islamic finance in the recent years, sukuks (Islamic bonds), which are the Shariah-compliant substitute to conventional bonds, are now becoming more prominent. Although there are numerous studies that have looked at the impact of global shocks on conventional bond spreads, little attention has been paid to explore the effect of the global shocks to the sukuk spreads. This study’s objective was thus to examine the impact of factors affecting the conventional bond and sukuk markets, including financial factors, economic policy uncertainty, U.S. and EU macroeconomic news, using an ordinary least squares approach. The results indicated that for regions and countries such as the GCC (Gulf Cooperation Council), Malaysia, Indonesia, Turkey, and Singapore, global shocks play a vital role in explaining sukuk spreads. Furthermore, employing a matched sample featuring firms from these regions and countries revealed that European and U.S. macroeconomic announcements and economic policy uncertainty have a significantly greater impact on sukuk spreads than on conventional bond spreads.
Journal: Applied Economics
Pages: 3748-3769
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1721424
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1721424
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3748-3769




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Yu Paula Hao
Author-X-Name-First: Jong-Yu Paula
Author-X-Name-Last: Hao
Author-Name: Jasmine Yur-Austin
Author-X-Name-First: Jasmine
Author-X-Name-Last: Yur-Austin
Author-Name: Lu Zhu
Author-X-Name-First: Lu
Author-X-Name-Last: Zhu
Title: Credit default swaps and CEO compensation: a long-term perspective
Abstract: 
 In this paper, we examine whether the onset of credit default swaps (CDSs) affects a firm’s executive compensation. The availability of CDSs allows lenders to transfer credit risk, but not control or monitoring rights, to CDS sellers. Hence, CDS-protected lenders’ incentives to monitor borrowing firms are curtailed, which could exacerbate the managerial agency problem. To mitigate the concern about the increased agency problem, we postulate that shareholders are more likely to demand greater long-term compensation for CEOs to compensate for their reduced ability to delegate monitoring to CDS-protected lenders. Consistent with our hypothesis, we find a positive CDS-incentive horizon relationship. Moreover, the positive relationship is more pronounced for institutional investors who have stronger incentives for monitoring. This study contributes to the literature by examining the impact of CDSs on executive compensation design, which has been largely overlooked in prior research.
Journal: Applied Economics
Pages: 3770-3787
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722793
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722793
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3770-3787




Template-Type: ReDIF-Article 1.0
Author-Name: En-Ze Wang
Author-X-Name-First: En-Ze
Author-X-Name-Last: Wang
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: Dynamic spillovers and connectedness between oil returns and policy uncertainty
Abstract: 
 This article investigates the dynamic connectedness and spillover effects between category policy uncertainty and WTI crude oil returns for oil-importing countries. To overcome the shortcomings of the traditional rolling-window method and obtain rigorous results, we adopt the TVP-VAR-based connectedness approach, apply it to full samples, and then estimate the dynamic spillovers between the series. Regarding the whole sample, the results reveal that economic policy uncertainty is as a net transmitter, and by employing four categorical policy uncertainty indices we reach the same conclusions. In particular, spillovers of fiscal policy uncertainty on crude oil returns are the most dominant ones, followed by exchange rate policy uncertainty, then monetary policy uncertainty, and finally trade policy uncertainty. And it is noteworthy that the network plots are employed by our article, which provides clearer evidence for the connectedness between variables. On a final note, Brent crude oil returns are utilized to increase the robustness of our conclusion.
Journal: Applied Economics
Pages: 3788-3808
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722794
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722794
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3788-3808




Template-Type: ReDIF-Article 1.0
Author-Name: Srikant Devaraj
Author-X-Name-First: Srikant
Author-X-Name-Last: Devaraj
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Title: Student debt, income-based repayment, and self-employment: evidence from NLSY 1997 and NFCS 2015
Abstract: 
 Based on the income-risk hypothesis, we test whether those with higher student debt are less likely to be self-employed. We also test if the income-based repayment programme increases the odds of self-employment. Using a longitudinal sample of 6,762 participants (1998–2011) in National Longitudinal Survey of Youth 1997 (NLSY97) and propensity score matching, we find that having student debt decreases the odds of self-employment by 1.3 percentage points. Further, using eligibility for income-based repayment programme as an instrument driving effect of loans in NLSY97 sample or use of income-based repayment plans in National Financial Capability Study 2015 increases the odds of self-employment of about 2 percent. The effect sizes are smaller than previous studies on student loans on labour market outcomes.
Journal: Applied Economics
Pages: 3809-3829
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722795
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722795
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3809-3829




Template-Type: ReDIF-Article 1.0
Author-Name: Theodoros Makridakis
Author-X-Name-First: Theodoros
Author-X-Name-Last: Makridakis
Author-Name: Sotiris Karkalakos
Author-X-Name-First: Sotiris
Author-X-Name-Last: Karkalakos
Title: Spatial hedonic models for environmental hazards and health outcomes
Abstract: 
 This article examines the relationship between the total cost of services for radioprotection and the health outcomes in Greece with a spatial hedonic model using data from the period 2010 to 2016. We employ spatial analysis in a hedonic price framework to examine the impact of total service cost Nuts 1 level in Greece. We incorporate geographical as well as economic and health personnel effects in order to test for the existence and magnitude of interregional externalities including health-care expenditure, medical capital investment and examinations magnetic resonance imaging. Our findings robustly demonstrate that interregional externalities do matter for the regions of economic linkages implying strong cross-regional spillovers than geographical ones. Furthermore, we isolate the imprint of each service for radioprotection, provided by Greek Atomic Energy Commission, in order to detect the impact of each one in the total cost services. The results support that services for non-ionizing radiation have the strongest impact.
Journal: Applied Economics
Pages: 3830-3841
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722796
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722796
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3830-3841




Template-Type: ReDIF-Article 1.0
Author-Name: Nisreen Moosa
Author-X-Name-First: Nisreen
Author-X-Name-Last: Moosa
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Huy Pham
Author-X-Name-First: Huy
Author-X-Name-Last: Pham
Author-Name: Alastair Watson
Author-X-Name-First: Alastair
Author-X-Name-Last: Watson
Title: The origin of the US-China trade war
Abstract: 
 The ongoing trade war (or at least dispute) between the US and China has its roots in the early 2000s when American politicians and economists started complaining about the US trade deficit with China. Accusing China of wrong-doing, as far as the US trade deficit is concerned, is based on the three propositions that the yuan is undervalued against the dollar, that the trade deficit is caused by currency undervaluation, and that Chinese trade and exchange rate policies are illegal or at least immoral, designed to promote Chinese exports and obstruct imports. These propositions are examined critically, and empirical results are produced to show that the revaluation of the yuan and the imposition of tariffs will not produce the desired results.
Journal: Applied Economics
Pages: 3842-3857
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722797
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722797
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3842-3857




Template-Type: ReDIF-Article 1.0
Author-Name: Refk Selmi
Author-X-Name-First: Refk
Author-X-Name-Last: Selmi
Author-Name: Jamal Bouoiyour
Author-X-Name-First: Jamal
Author-X-Name-Last: Bouoiyour
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Author-Name: Youssef Errami
Author-X-Name-First: Youssef
Author-X-Name-Last: Errami
Title: Is there an effect of policy-related uncertainty on inflation? evidence from the United States under Trump
Abstract: 
 This study bridges the existing literature on the macroeconomic effects of policy-related uncertainty and the literature on inflation dynamics and provide fresh insights on the impacts of policy-related uncertainty under President Donald Trump -coming from unforeseen events and actions of decision makers- on unanticipated inflation changes. With the increasingly volatile environment, developing effective resilience plan and hedging practices against rising policy uncertainty become fundamental in designing sensible risk management strategies. This paper compares the inflation-hedging abilities of oil, renewable energy and major precious metals (gold, palladium, platinum and silver). Under Trump, both economic and monetary policy uncertainties seem important for the observed changes in inflation. In times of rising uncertainty, doubts rise about the ability and the commitment of policy makers to deliver on their promises. In other words, policy-related uncertainties distort the Federal Reserve’s monetary policy and harm its credibility. To reduce the costs of inflation surprises, an inflation-protecting asset allocation analysis is conducted. Gold and oil have proved to offer the most effective hedge against inflation under Trump and during periods of inflationary pressures.
Journal: Applied Economics
Pages: 3858-3873
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1723786
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1723786
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3858-3873




Template-Type: ReDIF-Article 1.0
Author-Name: Chengzheng Li
Author-X-Name-First: Chengzheng
Author-X-Name-Last: Li
Author-Name: Yunyun Wang
Author-X-Name-First: Yunyun
Author-X-Name-Last: Wang
Title: Capital advantages: could colleges and universities located in Beijing City win more national social science fund projects?
Abstract: 
 This paper examines the relationship between the distance a college/university from Beijing city and the number of the National Social Science Fund projects it undertakes. We find that geographical location of a college/university is closely related to the number of National Social Science Fund projects it undertakes, and per hundred kilometres far away from Beijing city will result in a decrease of the number of projects by 0.24–0.50. In addition, colleges and universities located in Beijing city have significant advantages over those located in other places with more projects of 1.74–5.68. It is also shown that, for colleges and universities, especially for those top 100, the availability of high-speed railway to Beijing city significantly increases the probability of winning the National Social Science Fund projects.
Journal: Applied Economics
Pages: 4135-4145
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730754
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730754
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4135-4145




Template-Type: ReDIF-Article 1.0
Author-Name: Rami Galal
Author-X-Name-First: Rami
Author-X-Name-Last: Galal
Author-Name: Hoda El Enbaby
Author-X-Name-First: Hoda
Author-X-Name-Last: El Enbaby
Title: Inequality of opportunity in earnings and assets in Egypt
Abstract: 
 By most available measures, the level of inequality in the MENA region, including Egypt, is considered relatively low. This regularity applies to both inequality of outcomes as well as inequality of opportunity. This paper challenges this view. It argues specifically that circumstances beyond the control of individuals account for a larger share of inequality of opportunity when asset distribution is considered rather than the distribution of earnings, essentially because earnings are subject to measurement errors and idiosyncratic shocks. The paper tests this proposition by estimating the extent to which factors related to the circumstances a person is born into contribute to inequality of opportunity in earnings as well as asset ownership. The results show that circumstances account 26–32% of inequality of asset distribution, compared with only 8–10% of inequality of opportunity in earnings. The analysis further shows that the area of birth and fathers education level are the two most important circumstance factors contributing to inequality of opportunity, for both assets and earnings.
Journal: Applied Economics
Pages: 4146-4161
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1731409
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1731409
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4146-4161




Template-Type: ReDIF-Article 1.0
Author-Name: Margherita Carlucci
Author-X-Name-First: Margherita
Author-X-Name-Last: Carlucci
Author-Name: Carlotta Ferrara
Author-X-Name-First: Carlotta
Author-X-Name-Last: Ferrara
Author-Name: Kostas Rontos
Author-X-Name-First: Kostas
Author-X-Name-Last: Rontos
Author-Name: Ilaria Zambon
Author-X-Name-First: Ilaria
Author-X-Name-Last: Zambon
Author-Name: Luca Salvati
Author-X-Name-First: Luca
Author-X-Name-Last: Salvati
Title: The long breadth of cities: revisiting worldwide urbanization patterns, 1950–2030
Abstract: 
 A comparative analysis of population dynamics worldwide contributes to profile distinctive demographic and economic trajectories of urban growth, discriminating processes of settlement concentration or dispersion under sequential cycles of urbanization. However, a wide-ranging characterization of urban cycles based on demographic dynamics worldwide is still missing. The present work is aimed at filling such a gap analysing long-term changes (1950–2030) in annual population growth rate of 1691 urban agglomerations with more than 300,000 inhabitants in 74 world countries. Results of this study indicate that metropolitan growth worldwide was associated with largely variable rates of population growth, highly positive before 2000 and progressively reducing over recent decades. Despite important differences at continental (and country) scale, demographic expansion of urban agglomerations showed two contrasting phases with a break point in the 1980s denoting a progressive reduction in spatial heterogeneity of population growth rates and a moderate slowdown in demographic dynamics. Intensity of urban expansion and spatial heterogeneity in population growth rates across metropolitan agglomerations evidences a trade-off between fast and slow demographic dynamics. These findings can be better understood to support theories of sequential city growth, making a suitable contribution to policy making, especially in countries where urban population is expanding more rapidly.
Journal: Applied Economics
Pages: 4162-4174
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1731410
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1731410
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4162-4174




Template-Type: ReDIF-Article 1.0
Author-Name: Eric Strobl
Author-X-Name-First: Eric
Author-X-Name-Last: Strobl
Author-Name: Bazoumana Ouattara
Author-X-Name-First: Bazoumana
Author-X-Name-Last: Ouattara
Author-Name: Sandrine Akassi Kablan
Author-X-Name-First: Sandrine Akassi
Author-X-Name-Last: Kablan
Title: Impact of hurricanes strikes on international reserves in the Caribbean
Abstract: 
 In this study, we investigate the impacts of hurricane shocks on the international reserves of Caribbean countries. To this end, we use a panel VARX (Vector Auto-Regressive, with exogenous variables) with monthly data that allow us to account for external shocks (hurricane strikes). Our results show that for the whole sample, an increase in foreign reserves a month after the strike was followed by a decrease 2 months later. The increase can be explained by remittances and emergency foreign aid granted by the International Monetary Fund. Dividing the sample into middle-income and high-income countries shows that the increase is mainly due to the latter. This outcome may not be surprising given that production in Caribbean high-income countries is mainly due to manufacturing, off-shore banking and natural resources exploitation, which are all non-weather dependent sectors, while the middle-income countries are mostly dependent on weather-prone agriculture and tourism.
Journal: Applied Economics
Pages: 4175-4185
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1731411
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1731411
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4175-4185




Template-Type: ReDIF-Article 1.0
Author-Name: Zhenxi Chen
Author-X-Name-First: Zhenxi
Author-X-Name-Last: Chen
Author-Name: Cuntong Wang
Author-X-Name-First: Cuntong
Author-X-Name-Last: Wang
Title: Speculative trading in Chinese housing market: a panel regression method
Abstract: 
 The major Chinese cities experienced dramatic increases in their house prices in the recent years. This paper derives the fundamental value of the housing markets based on the personal disposable income of individual cities. By controlling macroeconomic variables and government intervention, we detect speculative trading based on fundamental value and historical price movements. Fundamentalists expect house prices to converge to the fundamental values while chartists hold a momentum trading expectation. Further differentiating the cities into tier-1 and non-tier-1, the non-tier-1 cities are found to be subject to a risk of plummeting arising from the interaction terms between the fundamentalists and chartists.
Journal: Applied Economics
Pages: 4186-4195
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1733473
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733473
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4186-4195




Template-Type: ReDIF-Article 1.0
Author-Name: Tien-Muoi Le
Author-X-Name-First: Tien-Muoi
Author-X-Name-Last: Le
Author-Name: Chia-Nan Wang
Author-X-Name-First: Chia-Nan
Author-X-Name-Last: Wang
Author-Name: Han-Khanh Nguyen
Author-X-Name-First: Han-Khanh
Author-X-Name-Last: Nguyen
Title: Using the optimization algorithm to evaluate and predict the business performance of logistics companies–a case study in Vietnam
Abstract: 
 In the current market economy, it is important to evaluate and forecast the situation and business performance of enterprises to provide the necessary information for managers to plan for future use of resources. This study aims to evaluate and predict the business performance of logistics companies in Vietnam. The authors use the optimal algorithm in the data envelopment analysis (DEA) to evaluate the business efficiency of the companies in the years 2014–2017. In addition, the authors use Grey system theory to forecast business results and their future use during the period of 2018–2021. The research shows that Gemadept Corporation and Sea & Air Freight International use the their business resources effectively and as expected, and that these companies will continue to thrive in the future. This study provides a method to measure, evaluate, and forecast the business performance of the logistics companies. Managers and the government can rely on this approach for implementation and overall planning of logistics enterprises in the future.
Journal: Applied Economics
Pages: 4196-4212
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1733474
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733474
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4196-4212




Template-Type: ReDIF-Article 1.0
Author-Name: Angela Stefania Bergantino
Author-X-Name-First: Angela Stefania
Author-X-Name-Last: Bergantino
Author-Name: Giuseppe Di Liddo
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Di Liddo
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Title: Regression-based measure of urban sprawl for Italian municipalities using DMSP-OLS night-time light images and economic data
Abstract: 
 Night-time light can be used in order to evaluate the degree of urbanization and urban sprawl in a specific territory. In fact, at the local level, the lower the urban density, the higher the per-capita length of collector roads and the area covered by buildings and infrastructures. It follows that the lower the urban density, the higher the municipal luminosity. Urban sprawl is determinant in defining the mobility condition in a specific territory and the service and infrastructure needs. This paper uses regression analyses in order to estimate a ‘relative’ measure of urban sprawl that takes into account also demographic and economic characteristics. We apply this technique to a panel of Italian municipalities over the period 2004–2012 and compare the resulting measure to the ‘absolute’ measures provided by the Italian Institute for Environmental Protection and Research in order to evaluate the contribution of our measure to the knowledge of the sprawl phenomenon.
Journal: Applied Economics
Pages: 4213-4222
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1733475
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733475
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4213-4222




Template-Type: ReDIF-Article 1.0
Author-Name: Yang Song
Author-X-Name-First: Yang
Author-X-Name-Last: Song
Author-Name: Wolfram Elsner
Author-X-Name-First: Wolfram
Author-X-Name-Last: Elsner
Author-Name: Zhiyuan Zhang
Author-X-Name-First: Zhiyuan
Author-X-Name-Last: Zhang
Author-Name: Ron Berger
Author-X-Name-First: Ron
Author-X-Name-Last: Berger
Title: Collaborative innovation and policy support: the emergence of trilateral networks
Abstract: 
 The present article models the critical factors for a successful and evolutionarily stable National System of Innovation. We simulate a model, against the background of increasingly complex technologies, in a national process of agents’ interactions with social-dilemma characteristics. In particular, the articleinvestigates the emergence of a trilateral collaborative innovation alliance among ‘enterprise’, ‘university’ and ‘government’. We apply a tripartite evolutionary game with a replication process and explore the role and options of the public policy agent to support collaboration on innovation. We find that some policy mix, in particular, a combination of (1) public rewards for cooperation, (2) public punishment for non-cooperation and (3) settings of public cost controls and tax income from innovation, can promote broad and sustainable innovation alliances. For instance, threats of strong punishment, even with low public rewards for cooperation, may promote the formation of a collaborative innovation alliance. We run some sensitivity analyses of the results through parametric variation of two critical factors of the model, knowledge spillover and output elasticity of knowledge input. We find some qualifications for the velocity of the process.
Journal: Applied Economics
Pages: 3651-3668
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2019.1708254
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1708254
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3651-3668




Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Alejandro Romo-Muñoz
Author-X-Name-First: Rodrigo Alejandro
Author-X-Name-Last: Romo-Muñoz
Author-Name: Rodrigo Monje-Sanhueza
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Monje-Sanhueza
Author-Name: Héctor Garrido-Henríquez
Author-X-Name-First: Héctor
Author-X-Name-Last: Garrido-Henríquez
Author-Name: José M Gil
Author-X-Name-First: José M
Author-X-Name-Last: Gil
Title: Key market values for bottled wine in an emerging market: product attributes or business strategy?
Abstract: 
 This article focuses on the emerging bottled Chilean red wine market and studies the main determinants of the consumer price of wine sold on the domestic market. A hedonic price function was estimated for a sample of 810 wines using a quantile regression (QR) model. The database contains three variable groups to explain price: objective variables (national, international and vine quality designations), subjective variables (wine score) and business strategies used by wine producers. Results show that some objective variables have a greater impact on price than the wine score (a subjective variable) and business strategies, which vary for each quartile of prices analysed. Finally, this information will allow companies to design and implement marketing strategies to inform the consumer about the importance of some variables in the price of their product.
Journal: Applied Economics
Pages: 3669-3679
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1717428
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1717428
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3669-3679




Template-Type: ReDIF-Article 1.0
Author-Name: Yuqin Huang
Author-X-Name-First: Yuqin
Author-X-Name-Last: Huang
Author-Name: Haoran Zhang
Author-X-Name-First: Haoran
Author-X-Name-Last: Zhang
Title: Does individual investors’ attention influence underwriters’ IPO pricing?
Abstract: 
 Using a unique Chinese IPO bidding dataset and a particular social media dataset, we examine the impact of individual investors’ attention on underwriters’ offer price adjustment, offer price revision, IPO initial returns, and long-term performance. We find that when a company receives more attention from individual investors before the underwriter finalizes the offer price, the underwriter will adjust the offer price higher. Moreover, we find that the IPO initial returns are significantly positively related to individual investors’ attention. These findings suggest that individual investors will influence underwriters’ pricing behaviour from a new perspective, – –investors’ attention. Finally, we do not find a significant relationship between individual investors’ attention and IPO long-run performance.
Journal: Applied Economics
Pages: 3680-3687
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1720904
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1720904
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3680-3687




Template-Type: ReDIF-Article 1.0
Author-Name: Sungmun Choi
Author-X-Name-First: Sungmun
Author-X-Name-Last: Choi
Title: Do interest groups reward politicians for their votes in the legislature? Evidence from the great recession
Abstract: 
 Interest groups lobby politicians in various ways to influence their policy decisions, especially, their voting decisions in the legislature. Most, if not all, of the studies on this issue examine ”pre-vote” lobbying activities of interest groups that occur before politicians vote in the legislature. In this paper, however, I examine ”post-vote” lobbying activities of interest groups that occur after politicians vote in the legislature. By using data on the amount of monetary contributions given by interest groups to the members of the U.S. House of Representatives who have served in the 109th (2005–06) through 111th (2009–10) Congress, I find evidence that voting in favour of the Emergency Economic Stabilization Act (EESA) of 2008, one of the most significant pieces of legislation and possibly the biggest government bailout in U.S. economic history, has increased the amount of monetary contributions that politicians receive from the interest groups in the financial sector after the passage of the EESA. I also discuss two reasons for such post-vote lobbying and find empirical evidence for one of them.
Journal: Applied Economics
Pages: 3688-3699
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1720905
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1720905
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3688-3699




Template-Type: ReDIF-Article 1.0
Author-Name: Duncan Grimson
Author-X-Name-First: Duncan
Author-X-Name-Last: Grimson
Author-Name: Stephen Knowles
Author-X-Name-First: Stephen
Author-X-Name-Last: Knowles
Author-Name: Philip Stahlmann-Brown
Author-X-Name-First: Philip
Author-X-Name-Last: Stahlmann-Brown
Title: How close to home does charity begin?
Abstract: 
 This paper uses a field experiment to analyse the extent to which people are more inclined to support a charity focused on people or causes in their own region, compared to regions in other parts of the country. New Zealand landowners were incentivized to take part in an online survey by being told they could choose a charity from a list of four that would receive a $10 donation if they completed the survey. Importantly, the charities are based in different regions of the country. We find evidence of a significant declining radius of altruism: not only do people prefer to support charities in their own area, the further away a charity is located, the less likely people are to support it. These findings highlight the importance of geographic distance (independent of social distance) in charitable giving.
Journal: Applied Economics
Pages: 3700-3708
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1720906
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1720906
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3700-3708




Template-Type: ReDIF-Article 1.0
Author-Name: Hui Jiang
Author-X-Name-First: Hui
Author-X-Name-Last: Jiang
Author-Name: Caiyun Liu
Author-X-Name-First: Caiyun
Author-X-Name-Last: Liu
Title: Economic policy uncertainty, CEO characteristics and firm R&D expenditure: a Bayesian analysis
Abstract: 
 This paper applies a linear Bayesian regression model to study the effects of economic policy uncertainty (EPU) and Chief Executive Officer (CEO) characteristics on firm Research and Development (R&D) expenditure. We specifically analysed data from 1,163 Chinese companies listed as A-shares from 2008–2016. EPU is believed to curtail firm investments as it causes unexpected market conditions. Yet, our findings obtained with Bayesian analysis show a positive relationship between EPU and firm R&D expenditure. Specifically, we found that some CEO attributes (e.g., age, tenure and marketing/sales experience) led to a negative relationship between EPU and firm R&D expenditure, whereas other attributes (e.g., education, overseas study/work experience, product R&D experience, and process engineering experience) lead to a positive relationship. Our findings provide nuanced insights into how different CEO characteristics influence firms’ R&D expenditure in a context of uncertainty.
Journal: Applied Economics
Pages: 3709-3731
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1721422
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1721422
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3709-3731




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Behrens
Author-X-Name-First: Christoph
Author-X-Name-Last: Behrens
Title: Evaluating the joint efficiency of German trade forecasts - a nonparametric multivariate approach
Abstract: 
 I analyse the joint efficiency of export and import forecasts by leading economic research institutes for the years 1970 to 2017 for Germany in a multivariate setting. To this end, I compute, in a first step, multivariate random forests in order to model links between forecast errors and a forecaster’s information set, consisting of several trade and other macroeconomic predictor variables. I use the Mahalanobis distance as performance criterion and, in a second step, permutation tests to check whether the Mahalanobis distance between the predicted forecast errors for the trade forecasts and actual forecast errors is significantly smaller than under the null hypothesis of forecast efficiency. I find evidence for joint forecast inefficiency for two forecasters, however, for one forecaster I cannot reject joint forecast efficiency. For the other forecasters, joint forecast efficiency depends on the examined forecast horizon. I find evidence that real macroeconomic variables as opposed to trade variables are inefficiently included in the analysed trade forecasts. Finally, I compile a joint efficiency ranking of the forecasters.
Journal: Applied Economics
Pages: 3732-3747
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1721423
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1721423
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3732-3747




Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Richard O. Olayeni
Author-X-Name-First: Richard O.
Author-X-Name-Last: Olayeni
Author-Name: Yu-Cheng Chang
Author-X-Name-First: Yu-Cheng
Author-X-Name-Last: Chang
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: The hydroelectricity consumption and economic growth in Asian countries - evidence using an asymmetric cointegration approach
Abstract: 
 This study examines the four commonly tested hypotheses in hydroelectricity consumption – economic growth literature for 12 Asian countries. Our results from a recently developed hidden cointegration technique uncover rich and significant relationships between negative and positive components of the variables under consideration. In particular, we find evidence to support the neutrality hypothesis in five countries (Bangladesh, Indonesia, Pakistan, Philippines, and Thailand), the growth hypothesis in four countries (India, Japan, South Korea and Taiwan), and both growth and conservation hypotheses in three countries (China, Malaysia, and New Zealand). These findings suggest that appropriate economic policies should be elaborated on the basis of the country’s specific hydroelectricity consumption–growth nexus. Finally, our new evidence suggests that the lack of stable relationship between hydroelectricity consumption and economic growth documented in previous studies for some of these countries could be due to the failure to properly account for the nonlinearity property in the data.
Journal: Applied Economics
Pages: 3999-4017
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730755
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730755
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:3999-4017




Template-Type: ReDIF-Article 1.0
Author-Name: Rafik Abdesselam
Author-X-Name-First: Rafik
Author-X-Name-Last: Abdesselam
Author-Name: Jean Bonnet
Author-X-Name-First: Jean
Author-X-Name-Last: Bonnet
Author-Name: Patricia Renou-Maissant
Author-X-Name-First: Patricia
Author-X-Name-Last: Renou-Maissant
Title: What are the drivers of business demography and employment in the countries of the European Union?
Abstract: 
 The aim of this contribution is to establish a typology of European entrepreneurship countries with respect to variables related to entrepreneurial activity and economic development. Using a combination of multidimensional data analyses allows us to extend the concept of ‘entrepreneurial regimes’ and leads to the distinction of five such entrepreneurial regimes. Moreover, in order to better characterize these classes, a wide set of illustrative variables representative of national economic development, labour market functioning, and formal and informal institutional environments, as well as variables specific to the entrepreneurial population, are considered. Finally, discriminant analyses show that the five explanatory themes considered (Innovation, Employment, Formal Institutions, Entrepreneurship and Governance) differentiate the classes, and significantly explain the diversity of entrepreneurial regimes. These findings have important implications for the implementation of public policy, in order to promote entrepreneurial activity and reduce unemployment.
Journal: Applied Economics
Pages: 4018-4043
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730756
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730756
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4018-4043




Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Chang
Author-X-Name-First: Xiao
Author-X-Name-Last: Chang
Author-Name: Guoqiang Li
Author-X-Name-First: Guoqiang
Author-X-Name-Last: Li
Author-Name: Xinhua Gu
Author-X-Name-First: Xinhua
Author-X-Name-Last: Gu
Author-Name: Chunyu Lei
Author-X-Name-First: Chunyu
Author-X-Name-Last: Lei
Title: Does the inequality-credit-crisis nexus exist? An empirical re-examination
Abstract: 
 Rajan claims that rising inequality led to financial crises through credit booms in the U.S. Kumhof and Ranciere provide a theoretical formulation for this hypothesis. However, their assertions are not supported by cross-country evidence found in the work of Bordo and Meissner. A few subsequent empirical studies, albeit inspired by this pioneering work, find new evidence not in line with its conclusion but with the Rajan hypothesis. To clarify this controversial issue, we base our study on the B-M framework, resort to different estimators, and employ more model specifications by incorporating the role of deindustrialization. We find strong evidence for the inequality-credit-crisis nexus as modelled by Kumhof et al.
Journal: Applied Economics
Pages: 4044-4057
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730757
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730757
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4044-4057




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Claudia Sant’Anna
Author-X-Name-First: Ana Claudia
Author-X-Name-Last: Sant’Anna
Author-Name: Ani L. Katchova
Author-X-Name-First: Ani L.
Author-X-Name-Last: Katchova
Title: Determinants of land value volatility in the U.S. Corn Belt
Abstract: 
 Understanding land value volatility and its reaction to exogenous shocks helps land owners, investors, and lenders assess risk. Land value volatility, the variance of the unpredictable component of land value growth rates, is modelled for each of the Corn Belt states in the U.S. using EGARCH. A pooled VAR system is then estimated to capture the interactions between land value determinants and land value volatility. The variables of the pooled VAR are split into negative and positive vectors to allow for asymmetric impacts. Impulse response functions are mapped. All states exhibit land value volatility clustering. Inflation, cash rent and population growth rates granger cause land value volatility. Land value volatility responses to negative shocks are greater than those to positive shocks. Lenders and investors should expect greater swings in land values after negative shocks to land value growth rates, but not an overreaction of land values from shocks to cash rent growth rates. Positive shocks to changes in interest rates increases land value volatility, but unexpected shocks to population growth rates do not have statistically significant impact on land value volatility.
Journal: Applied Economics
Pages: 4058-4072
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730760
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730760
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4058-4072




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Valentin Lenz
Author-X-Name-First: Marc Valentin
Author-X-Name-Last: Lenz
Author-Name: Sascha L. Schmidt
Author-X-Name-First: Sascha L.
Author-X-Name-Last: Schmidt
Author-Name: Dominik Schreyer
Author-X-Name-First: Dominik
Author-X-Name-Last: Schreyer
Title: The impact of personality traits on talents’ performance throughout development phases: empirical evidence from professional football
Abstract: 
 This paper addresses a critical gap in talent management research, i.e. the question of what determines high performance, by highlighting the importance of personality traits for the performance of talents who are trained within the strong situation of a pivotal talent pool – – the talent pool, of a German Bundesliga club. The findings illustrate the ubiquitous high level of certain personality traits among pivotal talents, their limited variance inter talent development phases as well as their significant impact on talent performance. As a complement to talents’ job-specific skill level, the personality facet of self-confidence is a consistent driver of overall performance, with resilience and job-specific creativity being essential in order to perform above peer-group level.
Journal: Applied Economics
Pages: 4073-4091
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730761
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730761
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4073-4091




Template-Type: ReDIF-Article 1.0
Author-Name: Edward I. Altman
Author-X-Name-First: Edward I.
Author-X-Name-Last: Altman
Author-Name: Małgorzata Iwanicz-Drozdowska
Author-X-Name-First: Małgorzata
Author-X-Name-Last: Iwanicz-Drozdowska
Author-Name: Erkki K. Laitinen
Author-X-Name-First: Erkki K.
Author-X-Name-Last: Laitinen
Author-Name: Arto Suvas
Author-X-Name-First: Arto
Author-X-Name-Last: Suvas
Title: A Race for Long Horizon Bankruptcy Prediction
Abstract: 
 This study compares the accuracy and efficiency of five different estimation methods for predicting financial distress of small and medium-sized enterprises. We apply different methods for a large set of financial and non-financial variables, using filter and wrapper selection, to predict bankruptcy up to 10 years before the event in an open, European economy. Our findings show that logistic regression and neural networks are superior to other approaches. We document how the cost-return ratio considerably affects the location of optimal cut-off points and attainable profit in credit decisions. Once a loan provider selects a particular prediction model, an effort should be made to find the optimal cut-off score to maximize the efficiency of the technique. Indeed, this often involves determining several cut-off levels where the portfolio of products and services exhibits different cost-return characteristics.
Journal: Applied Economics
Pages: 4092-4111
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730762
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730762
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4092-4111




Template-Type: ReDIF-Article 1.0
Author-Name: Hung Quang Do
Author-X-Name-First: Hung Quang
Author-X-Name-Last: Do
Author-Name: M. Ishaq Bhatti
Author-X-Name-First: M. Ishaq
Author-X-Name-Last: Bhatti
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Title: Is ‘oil and gas’ industry of ASEAN5 countries integrated with the US counterpart?
Abstract: 
 This paper employs the VARMA-MGARCH-ABEKK model and Granger causality on 15 years’ daily time series data to examine investment opportunities in the oil and gas industries for ASEAN5 countries relative to the US counterpart. It shows that the latter leads the former in decomposing integration into cross-country effects on returns and conditional return volatilities. The empirical results show that investors can gain an international intra-industry diversification benefit in Malaysia, the Philippines, Singapore and Vietnam by holding US oil and gas assets in their portfolios whereas Asian oil and gas assets may result in negative shocks due to the increase in return volatilities for Malaysia, Singapore and Vietnam. However, Thailand are insensitive to the cross-country intra-industry diversification. While making trading decisions, investors should be aware of the impulse responses of ASEAN oil and gas markets from the shocks in the US and the Asian markets and their asymmetric spill over effects.
Journal: Applied Economics
Pages: 4112-4134
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1731408
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1731408
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4112-4134




Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Author-Name: Tiago Sequeira
Author-X-Name-First: Tiago
Author-X-Name-Last: Sequeira
Title: Tradable and nontradable directed technical change
Abstract: 
 We wish to reconcile the major trends in wages and the terms of trade using a directed technical change approach in which: (i) tradable and nontradable goods can be substitutes or complements; and (ii) scale effects can be present or can be partially or totally removed. With a lower skilled labour ratio and a higher relative wage in the tradable sector, the price (real exchange rate or terms of trade) mechanism is crucial in determining sectoral productivity differences and thus wage inequality. Along the balanced growth path, the real exchange rate can be negatively related with the relative productivities in horizontal innovation (the Balassa-Samuelson effect) and with the relative labour level, depending on scale effects. The wage premium increases due to an increase in the relative labour level in the nontradable sector under substitutability with scale effects or under complementarity without scale effects. A calibrated version of the model indicates that the model closely replicates the data for Germany. Moreover, while the Balassa-Samuelson effect is quantified, an increase in the relative supply of labour in the tradable sector decreases both terms of trade and inequality.
Journal: Applied Economics
Pages: 3874-3897
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1725233
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1725233
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3874-3897




Template-Type: ReDIF-Article 1.0
Author-Name: Yassine Bakkar
Author-X-Name-First: Yassine
Author-X-Name-Last: Bakkar
Author-Name: Clovis Rugemintwari
Author-X-Name-First: Clovis
Author-X-Name-Last: Rugemintwari
Author-Name: Amine Tarazi
Author-X-Name-First: Amine
Author-X-Name-Last: Tarazi
Title: Charter value, risk-taking and systemic risk in banking before and after the global financial crisis of 2007-2008
Abstract: 
 We investigate how bank charter value affects risk for a sample of OECD banks by using standalone and systemic risk measures before, during, and after the global financial crisis of 2007–2008. Prior to the crisis, bank charter value is positively associated with risk-taking and systemic risk for very large ‘too-big-too-fail’ banks and large U.S. and European banks but such a relationship is inverted during and after the crisis. A deeper investigation shows that such a behaviour before the crisis is mostly relevant for very large banks and large banks with high growth strategies. Banks’ business models also influence this relationship. We find that for banks following a focus strategy, higher charter value amplifies both standalone and systemic risk for large U.S. and European banks. Our findings have important policy implications and cast doubts on the relevance of the uniform more stringent capital requirements introduced by Basel III.
Journal: Applied Economics
Pages: 3898-3918
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1725234
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1725234
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3898-3918




Template-Type: ReDIF-Article 1.0
Author-Name: Robert A. Buckle
Author-X-Name-First: Robert A.
Author-X-Name-Last: Buckle
Author-Name: John Creedy
Author-X-Name-First: John
Author-X-Name-Last: Creedy
Author-Name: Norman Gemmell
Author-X-Name-First: Norman
Author-X-Name-Last: Gemmell
Title: Is external research assessment associated with convergence or divergence of research quality across universities and disciplines? Evidence from the PBRF process in New Zealand
Abstract: 
 Performance-based research evaluations have been adopted in several countries both to measure research quality in higher education institutions and as a basis for the allocation of funding across institutions. Much attention has been given to evaluating whether such schemes have increased the quality and quantity of research. This paper examines whether the introduction of the New Zealand Performance-Based Research Fund process produced convergence or divergence in measured research quality across universities and disciplines between the 2003 and 2012 assessments. Two convergence measures are obtained. One, referred to as β-convergence, relates to the relationship between changes in average quality and the initial quality level. The second concept, referred to as σ-convergence, relates to the changes in the dispersion in average research quality over time. Average quality scores by discipline and university were obtained from individual researcher data, revealing substantial β- and σ-convergence in research quality over the period. The hypothesis of uniform rates of convergence across almost all universities and disciplines is supported. The results provide insights into the incentives created by performance-based funding schemes.
Journal: Applied Economics
Pages: 3919-3932
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1725235
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1725235
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3919-3932




Template-Type: ReDIF-Article 1.0
Author-Name: Shoude Li
Author-X-Name-First: Shoude
Author-X-Name-Last: Li
Author-Name: Susu Cheng
Author-X-Name-First: Susu
Author-X-Name-Last: Cheng
Author-Name: Dongdong Li
Author-X-Name-First: Dongdong
Author-X-Name-Last: Li
Title: Dynamic control of a monopolist’s product and process innovation with reference quality
Abstract: 
 Our main purpose is to investigate the dynamic control problem of a monopolist’s product and process innovation under reference quality. The main features of this article are: (i) a monopolist dealing with customer behaviour in the spirit of the principle of behaviour economics determines the product price, and carries out the activities of product and process innovation; (ii) the consumers’ demand depends on price, product quality and reference quality, and adopts an additive separable demand function form. Our main results show that under the cases of the monopolist optimum and the social planner optimum, (i) there exists an unique stable, which is a saddle-point steady-state equilibrium; (ii) the change rates of the monopolist’s investments in product and process innovation are increasing with the reference quality, while the monopolist’s steady-state investments in product and process innovation are decreasing with the reference quality; (iii) as the memory parameter increases with other parameters kept constant, it is very likely that the monopolist’s investment in process innovation be greater than the investment in product innovation; and (iv) the social incentive towards both investments in product and process innovation is always larger than the private incentive characterizing the profit-seeking monopolist.
Journal: Applied Economics
Pages: 3933-3950
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1725418
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1725418
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3933-3950




Template-Type: ReDIF-Article 1.0
Author-Name: Subhasree Basu Roy
Author-X-Name-First: Subhasree
Author-X-Name-Last: Basu Roy
Author-Name: Reed Neil Olsen
Author-X-Name-First: Reed Neil
Author-X-Name-Last: Olsen
Author-Name: Huikuan Tseng
Author-X-Name-First: Huikuan
Author-X-Name-Last: Tseng
Title: Do Hispanic immigrants spend less on medical care? Implications of the Hispanic health paradox
Abstract: 
 The literature of the Hispanic heath paradox has found that in the U.S. Hispanic immigrants have better health than U.S. natives, even though they tend to have lower socioeconomic status. The main objective of the current study is to investigate whether Hispanic immigrants also use less medical care goods and services. Main contributions of the article include using a data set of older Americans from the Health and Retirement Study covering the period from 1992 to 2012 as well as using three new measures of health, rather than the more common use of morbidity or mortality. We estimate the impact of relevant factors including health, race, and immigrant status upon five different measures of healthcare usage. Even though Hispanic immigrants do have lower mean levels of most measures of healthcare usage, when controlling for other factors in our regressions we find some evidence of increased healthcare usage for Hispanic immigrants. Increased health care utilization may be one explanation for the Hispanic health paradox.
Journal: Applied Economics
Pages: 3951-3964
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1726863
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726863
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3951-3964




Template-Type: ReDIF-Article 1.0
Author-Name: Ayhab F. Saad
Author-X-Name-First: Ayhab F.
Author-X-Name-Last: Saad
Title: The exceptional performance of exporters and labour market outcomes: evidence from Egyptian firms
Abstract: 
 This paper examines the manufacturing export market in Egypt after the Arab Spring using a novel firm-level census dataset from 2013. Export is very rare in Egypt. The conventional export premia are very high, except for total factor productivity. Exporters have stark effects on labour market outcomes, including wages, employment, demand for skilled and female workers, wage inequality, and job security. These findings have two important implications: (1) Manufacturing exports might be monopolized by large firms, and (2) promoting exports could improve labour market outcomes, especially for skilled and female workers.
Journal: Applied Economics
Pages: 3965-3975
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1726865
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726865
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3965-3975




Template-Type: ReDIF-Article 1.0
Author-Name: Shabbir Ahmad
Author-X-Name-First: Shabbir
Author-X-Name-Last: Ahmad
Title: Estimating input-mix efficiency in a parametric framework: application to state-level agricultural data for the United States
Abstract: 
 This paper contributes to the productivity literature by demonstrating novel econometric methods to estimate input-mix efficiency (IME) in a parametric framework. Input-mix efficiency is defined as the potential improvement in productivity with change in input mix. Any change in input-mix (e.g., land to labou r ratio) will result in change in productivity. The advantage of this approach is that it does not require data on input prices to estimate the mix efficiency levels. A nonlinear input-aggregator function (e.g., Constant Elasticity of Substitution) is used to derive an expression for input-mix efficiency. Bayesian stochastic frontier is estimated for obtaining mix efficiency using US state-level agricultural data for the period 1960–2004. Significant variation in input-mix efficiency is noted across the states and regions, attributable to diverse topographic and geographic conditions. Furthermore, comparisons of allocative and mix efficiencies provide insightful policy implications. The production incentives such as taxes and subsidies could help farmers in adjusting their input mix in response to changes in input prices, which can affect the US agricultural productivity significantly. The proposed methodology can be extended by i) using flexible functional forms; ii) introducing various time- and region-varying input aggregators; and iii) defining more sophisticated weights for input aggregators.
Journal: Applied Economics
Pages: 3976-3997
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1726866
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726866
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3976-3997




Template-Type: ReDIF-Article 1.0
Author-Name: Qian Zhang
Author-X-Name-First: Qian
Author-X-Name-Last: Zhang
Author-Name: Shuwen Yang
Author-X-Name-First: Shuwen
Author-X-Name-Last: Yang
Author-Name: Qingcheng Zeng
Author-X-Name-First: Qingcheng
Author-X-Name-Last: Zeng
Author-Name: Ting Yu
Author-X-Name-First: Ting
Author-X-Name-Last: Yu
Title: Storage pricing model of container yards under fluctuating demand
Abstract: 
 This paper discusses three types of relationship modes between a container terminal yard and a remote container yard. Considering the variability of demand, a corresponding storage pricing model based on game theory for inbound containers is developed to describe customer behaviour and pricing strategies of yards. The results of theoretical derivation and numerical study indicate that both sides will profit more in the cooperative mode, and the operational efficiency of terminals will be improved. The revenue-sharing contract designed in this paper leads to supply chain coordination. Perfect win-win coordination can be realized when the contract parameters meet specific conditions.
Journal: Applied Economics
Pages: 4223-4235
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733476
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733476
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4223-4235




Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Ying Chan
Author-X-Name-First: Jessica Ying
Author-X-Name-Last: Chan
Author-Name: Jonathan A. Cook
Author-X-Name-First: Jonathan A.
Author-X-Name-Last: Cook
Title: Inferring Zambia’s HIV prevalence from a selected sample
Abstract: 
 This paper estimates HIV prevalence in Zambia from survey data that are subject to sample selection: some surveyed individuals do not consent to take an HIV test. We introduce semiparametric estimators that incorporate recent developments in machine learning. The semiparametric estimators perform well in Monte Carlo experiments and obtain narrower confidence intervals than a fully parametric estimator when the model is misspecified. Our semiparametric estimates of the HIV rate are roughly equal to the rate in the selected sample. In contrast, recent parametric estimates find a higher rate – implying that some form of sample-selection correction is warranted. Further, parametric estimates find a 14% decline in Zambia’s HIV prevalence from 2007 to 2014, whereas semiparametric estimates find that the HIV rate was relatively stable over this time period.
Journal: Applied Economics
Pages: 4236-4249
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733477
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733477
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4236-4249




Template-Type: ReDIF-Article 1.0
Author-Name: Gazi Salah Uddin
Author-X-Name-First: Gazi Salah
Author-X-Name-Last: Uddin
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Anupam Dutta
Author-X-Name-First: Anupam
Author-X-Name-Last: Dutta
Author-Name: Sang Hoon Kang
Author-X-Name-First: Sang Hoon
Author-X-Name-Last: Kang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Impact of food price volatility on the US restaurant sector
Abstract: 
 Although fluctuations in agricultural commodity prices appear to be a source of risk to the US restaurant sector, the effect that volatility of food price has on the performance (returns) of that sector receives little or no attention in the relevant literature. We fill this gap by modelling the price and returns of corn and wheat and the volatilities of the US restaurant equity sector through a GARCH-jump intensity model. We find evidence indicating that the US restaurant sector is sensitive to food volatility shocks. Food price volatility negatively impacts US restaurant sector equity returns, implying that increases in food price volatility undermine restaurant sector performance. Also, food price volatility is observed to influence the restaurant sector symmetrically, indicating that changes in food volatility (increases and decreases) have homogeneous effects on the US restaurant sector performance. Implications of the results are discussed.
Journal: Applied Economics
Pages: 4250-4262
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733478
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733478
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4250-4262




Template-Type: ReDIF-Article 1.0
Author-Name: Livio Di Matteo
Author-X-Name-First: Livio
Author-X-Name-Last: Di Matteo
Author-Name: Fraser Summerfield
Author-X-Name-First: Fraser
Author-X-Name-Last: Summerfield
Title: The shifting Scully curve: international evidence from 1871 to 2016
Abstract: 
 Scully curves estimating growth-maximizing public-sector size are constructed using panel data covering 17 industrialized nations from 1870–2016. Results suggest that government expenditure-to-GDP ratios between 24% and 32% were historically growth maximizing. Instrumental variable estimates support the quadratic Scully curve relationship as causal over this period. We allow for a shifting Scully curve and find that the economic growth-maximizing size changed throughout history, from 11% pre-WWI to 21% post-WWII and 41% following the OPEC crisis. The Scully curve disappears after the mid-1990s suggesting a structural change in the relationship between central government expenditure and economic growth.
Journal: Applied Economics
Pages: 4263-4283
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733479
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733479
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4263-4283




Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Marzioni
Author-X-Name-First: Stefano
Author-X-Name-Last: Marzioni
Author-Name: Alessandro Pandimiglio
Author-X-Name-First: Alessandro
Author-X-Name-Last: Pandimiglio
Author-Name: Marco Spallone
Author-X-Name-First: Marco
Author-X-Name-Last: Spallone
Title: Excise gap and price in the Italian cigarette industry
Abstract: 
 We provide evidence that tax shifts in the Italian cigarette industry are not homogeneous across price categories and are associated with differences in the excise structure. We take the gap between excise on lower and higher price categories as a proxy for unbalanced tax changes and, abstracting from strategic behaviour of manufacturers, we estimate the effect and the significance of a change in the excise gap, as long as in the tax level, on the market average price. We find that unbalanced tax increases are likely to negatively affect the average price towards the low end of the price category. As a result, the potential impact of taxation increase on price is reduced.
Journal: Applied Economics
Pages: 4284-4299
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733480
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733480
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4284-4299




Template-Type: ReDIF-Article 1.0
Author-Name: Rong Li
Author-X-Name-First: Rong
Author-X-Name-Last: Li
Author-Name: Sufang Li
Author-X-Name-First: Sufang
Author-X-Name-Last: Li
Author-Name: Di Yuan
Author-X-Name-First: Di
Author-X-Name-Last: Yuan
Author-Name: Keming Yu
Author-X-Name-First: Keming
Author-X-Name-Last: Yu
Title: Does economic policy uncertainty in the U.S. influence stock markets in China and India? Time-frequency evidence
Abstract: 
 This paper uses continuous and discrete wavelet tools to evaluate the dynamic correlation and causality between the U.S. economic policy uncertainty (EPU) and stock markets in China and India from 1997 to 2018. The dynamic correlation in the time-frequency domain is obtained by continuous wavelet coherence, and the causality over time and frequencies is tested by the linear and non-linear Granger causality based on discrete wavelet transform. The results show that the interaction between EPU in the U.S. and stock returns in China and India is weak in the short term but gradually becomes stronger in the long term, especially when significant financial events occur. There is no Granger causality in the short term; however, there is unidirectional or bidirectional causality in the medium and long term. These conclusions may provide useful reference for policymakers and investors in Chinese and Indian stock markets to prevent cross-country risk contagion from the U.S.
Journal: Applied Economics
Pages: 4300-4316
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1734182
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1734182
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4300-4316




Template-Type: ReDIF-Article 1.0
Author-Name: Afonso Câmara Leme
Author-X-Name-First: Afonso
Author-X-Name-Last: Câmara Leme
Author-Name: Josep-Oriol Escardíbul
Author-X-Name-First: Josep-Oriol
Author-X-Name-Last: Escardíbul
Author-Name: Luis Catela Nunes
Author-X-Name-First: Luis Catela
Author-X-Name-Last: Nunes
Author-Name: Ana Balcão Reis
Author-X-Name-First: Ana
Author-X-Name-Last: Balcão Reis
Author-Name: Carmo Seabra
Author-X-Name-First: Carmo
Author-X-Name-Last: Seabra
Title: The effect of a specialized versus a general upper-secondary school curriculum on students’ performance and inequality. A difference-in-differences cross-country analysis
Abstract: 
 Countries differ in their academic upper-secondary school systems whereby some require their students to choose a specialization track from a set of areas – typically natural sciences, economic sciences, or humanities – and follow that specialization for the course of their upper secondary education years whereas, by contrast, others follow a general curriculum in which students are not required to follow a single specialization and thus, may receive a more general education. Because countries follow only one system or the other, a cross-country analysis is required to estimate the possible effects on students’ achievement of these institutional differences. We measure achievement with the scores in reading and mathematics in international assessment programmes. An international difference-in-differences approach is chosen to account for country heterogeneity and unobserved factors influencing student outcomes, by using data from three different large-scale international student assessments. Results suggest that there is a negative effect from specialization tracking and that this may be greater for specific sub-groups of the student population – in particular, for students with a low socioeconomic status.
Journal: Applied Economics
Pages: 4317-4331
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1734183
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1734183
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4317-4331




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Botta
Author-X-Name-First: Marco
Author-X-Name-Last: Botta
Title: Financial crises, debt overhang, and firm growth in transition economies
Abstract: 
 We examine the effects of the global financial crisis of 2008 and the European debt crisis of 2011 on the relationship between capital structure, investments, and performance for Eastern European companies. While the existing literature documents how firms’ investments are sensitive to the availability of internal funds and to debt holdings, we further investigate whether this investment sensitivity also translates in different levels of performance, and document that capital structure indeed has both a direct and an indirect effect, mediated by the capital expenditure channel. We show that firms with higher financial flexibility experience higher investments and returns on capital. Over-levered firms instead suffer from a debt overhang condition, forcing them to curb investments, and consequently experiencing lower performance. Overall, we provide evidence on the importance of capital structure and financial flexibility on investments and performance, showing the real consequences of the debt overhang condition on firm value creation. Firms should therefore aim at maintaining adequate financial flexibility in order to be able to pursue future profitable investment opportunities, and avoid the under-investment problem arising from a debt overhang situation.
Journal: Applied Economics
Pages: 4333-4350
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1734184
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1734184
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4333-4350




Template-Type: ReDIF-Article 1.0
Author-Name: Zuohui Zuo
Author-X-Name-First: Zuohui
Author-X-Name-Last: Zuo
Author-Name: Yan Zhou
Author-X-Name-First: Yan
Author-X-Name-Last: Zhou
Title: Rotating group representatives and group members’ requests in repeated public goods game
Abstract: 
 This study investigated the effect of group representatives on contribution behaviour in response to group members’ requests in repeated public goods games. Data came from 135 students in 15 groups enrolled in the experiment, grouped in the following treatments: no group representatives (NR, NRG) and group representatives (R1, R2). We also tested initial requests wherein the group members’ initial requests (i.e. NRG, R2) mediated the positive relationship between individual-level contribution preferences and group contributions. We used a fixed-effects GLS regression and IV regression to analyse the effect of group representatives and group members’ requests. The results indicated the following: (a) rotating group representative/group members’ requests was related to group contributions at the session (within-members) and group (between-group) levels; (b) the reactions to members’ requests positively predicted group contributions; (c) subjects in the no group representatives treatment formed their requests by relying more on previous group contributions than subjects in the group representatives treatment, who relied more on the previous group members’ requests; and (d) the initial requests explained long-term contribution levels, which resulted in variations in group contributions observed between the NRG and R2 treatments. Our findings highlight the role of rotating group representatives in stimulating cooperation among members, while group members’ requests impel individuals to make contribution decisions at the group level.
Journal: Applied Economics
Pages: 4351-4365
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735616
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735616
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4351-4365




Template-Type: ReDIF-Article 1.0
Author-Name: Ying Zhang
Author-X-Name-First: Ying
Author-X-Name-Last: Zhang
Author-Name: Dongqi Yao
Author-X-Name-First: Dongqi
Author-X-Name-Last: Yao
Author-Name: Chunguang Zhang
Author-X-Name-First: Chunguang
Author-X-Name-Last: Zhang
Title: Bank loan versus financial lease: how do traditional and innovative approaches within the banking sector influence economic growth? A comparative analysis between the US and China
Abstract: 
 The argument over the effects of financial structures on economic growth remains unsettled. This study, therefore, compares the dynamic correlation and lead–lag relationship between the different financial approaches within the banking sector (that is, traditional bank loans versus innovative financial leasing) and economic growth. We employ a continuous wavelet analysis using time-series data from 1982–2017 from the US (the world’s largest developed country) and China (the world’s largest developing country). The empirical results show that (1) episodes of significant correlation usually emerge during periods of reform, crisis or policy implementation; and (2) in China, traditional banking promotes economic growth in the long term, while the real economy only imputes the evolution of banks during critical economic reforms in the short term. Meanwhile, financial leasing could only promote the development of the real economy under suitable regulation; and (3) in the US, before the crises, the irrational growth of the real economy could increase bank assets, while during the crises, the traditional banking approach harms economic growth, and after the crises, financial leases play an important role in recovery. Therefore, we suggest that policymakers should establish adequate policies and regulations to solve the situation.
Journal: Applied Economics
Pages: 4366-4383
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735617
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735617
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4366-4383




Template-Type: ReDIF-Article 1.0
Author-Name: Ivan Indriawan
Author-X-Name-First: Ivan
Author-X-Name-Last: Indriawan
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Author-Name: Tai-Yong Roh
Author-X-Name-First: Tai-Yong
Author-X-Name-Last: Roh
Author-Name: Yahua Xu
Author-X-Name-First: Yahua
Author-X-Name-Last: Xu
Title: Bad volatility is not always bad: evidence from the commodity markets
Abstract: 
 Using exchange-traded fund (ETF) options data, we examine the predictive power of variance risk premium on returns of four commodities: crude oil, natural gas, gold and silver. We also analyze the predictive power of upside and downside variance risk premiums using a decomposition model conditional on the direction of the underlying market movement. We find that both the undecomposed and decomposed variance risk premiums are able to predict commodity prices. The decomposed variance risk premiums, however, outperform the undecomposed premium. The importance of upside and downside variance risk premiums differs across markets, related to hedging demand. In energy markets, both upside and downside premiums have strong predictive power, while in precious metal markets, only the upside premium is predictive.
Journal: Applied Economics
Pages: 4384-4402
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735619
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735619
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4384-4402




Template-Type: ReDIF-Article 1.0
Author-Name: Karl-Friedrich Israel
Author-X-Name-First: Karl-Friedrich
Author-X-Name-Last: Israel
Author-Name: Sophia Latsos
Author-X-Name-First: Sophia
Author-X-Name-Last: Latsos
Title: The impact of (un)conventional expansionary monetary policy on income inequality – lessons from Japan
Abstract: 
 This paper analyzes the impact of conventional and unconventional monetary policy on income inequality in Japan, using hitherto unexplored data from the Japan Household Panel Survey. Empirical evidence shows that expansionary monetary policy in Japan has contributed to diminishing the gender pay gap through an increase in working time of women relative to men, but also to increasing the education pay gap. These effects may have materialized via the aggregate demand channel and the labour productivity channel. In contrast, expansionary monetary policy has had no significant impact on the development of the age pay gap.
Journal: Applied Economics
Pages: 4403-4420
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735620
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735620
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4403-4420




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W. Clements
Author-X-Name-First: Kenneth W.
Author-X-Name-Last: Clements
Author-Name: Yihui Lan
Author-X-Name-First: Yihui
Author-X-Name-Last: Lan
Author-Name: Haiyan Liu
Author-X-Name-First: Haiyan
Author-X-Name-Last: Liu
Title: Understanding alcohol consumption across countries
Abstract: 
 With unpublished data from the International Comparison Program that cover the consumption of three alcoholic beverages in over 150 countries, we analyse drinking patterns around the world with an index-number approach, by estimating a demand system, and by studying the interaction among beverages in generating utility. We consider a separate demand system for each income quartile and find that tastes are not too different across quartiles. Broadly speaking, the results are robust to rolling sub-samples of countries, an alternative demand model and sample selectivity issues. The differences in the cost of alcohol across countries are also investigated, as is its role in affecting the degree of price-sensitivity of consumption.
Journal: Applied Economics
Pages: 4421-4439
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735621
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735621
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4421-4439




Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Firgo
Author-X-Name-First: Matthias
Author-X-Name-Last: Firgo
Author-Name: Klaus Nowotny
Author-X-Name-First: Klaus
Author-X-Name-Last: Nowotny
Author-Name: Alexander Braun
Author-X-Name-First: Alexander
Author-X-Name-Last: Braun
Title: Informal, formal, or both? Assessing the drivers of home care utilization in Austria using a simultaneous decision framework
Abstract: 
 Understanding the relationship between different modes of home care for the elderly and the determinants of mode choice is fundamental for an efficient care policy in ageing societies. However, empirical research on this issue has revealed that policy conclusions will depend on both national and methodological factors. Using data for Austria from the Survey of Health, Ageing and Retirement in Europe, the purpose of the present paper is twofold: First, at least to our knowledge, it is the first comprehensive assessment of this kind for Austria. Second, it adds to the literature explicitly focusing on the combined use of informal and formal care in addition to the exclusive use of these services based on an econometric framework accounting for the simultaneity and interdependence between these modes. Our results provide strong evidence for a task-specific and complementary relation of formal and informal home care in Austria, with the health status and functional limitations as the main determinants of home care choice.
Journal: Applied Economics
Pages: 4440-4456
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1736500
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1736500
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4440-4456




Template-Type: ReDIF-Article 1.0
Author-Name: Sonia Antil
Author-X-Name-First: Sonia
Author-X-Name-Last: Antil
Author-Name: Mukesh Kumar
Author-X-Name-First: Mukesh
Author-X-Name-Last: Kumar
Author-Name: Niranjan Swain
Author-X-Name-First: Niranjan
Author-X-Name-Last: Swain
Title: Evaluating the efficiency of regional rural banks across the Indian states during different phases of structural development
Abstract: 
 The study aims to evaluate the efficiency of regional rural banks (RRBs) across 26 major states in India during different phases of structural development (merger & acquisitions) in the post-reform period of last 15 years spanning from 2001 to 2015. The technique of data envelopment analysis (DEA) is used to evaluate the efficiency of RRBs in each state during three sub-periods to observe the effect of mergers. In-depth analysis is conducted to test the robustness of efficiency scores and evaluate the potential improvement of defined inputs and outputs of inefficient states. The finding reveals wide variations in efficiency across the states in each sub-period. On an average, there is a remarkable improvement in technical efficiency (TE) over three sub-periods resulting through the gain in both pure efficiency (PE) as well as scale efficiency (SE) and thus providing evidence of the positive impact of mergers & acquisitions in different phases of structural development.
Journal: Applied Economics
Pages: 4457-4473
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1735622
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735622
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4457-4473




Template-Type: ReDIF-Article 1.0
Author-Name: Aoran Wang
Author-X-Name-First: Aoran
Author-X-Name-Last: Wang
Title: Professors on boards and corporate innovation in China
Abstract: 
 Using a dataset of listed companies in China, this article finds strong evidence suggesting that academic independent directors on boards have statistically significant and economically substantial promotion effects on corporate innovation. On average, professor directors increase invention-type patent applications and grants by 11% and 7%, respectively. We use Heckman two-stage estimation to address selection bias, and we design two quasi-natural experiments taking advantage of China’s regulatory requirement of six-year tenure expiration for all independent directors and exploiting sudden departures of professor directors due to their personal reasons, respectively, to abate endogeneity. Our results endure these econometric treatments and a series of robustness checks. Furthermore, we document evidence that the advice, conduit, and connectivity channels all work in forming the professor director’s promotion effects on corporate innovation. Moreover, we find that other two types of independent directors, politicians and business people, have hardly any effect on the promotion of corporate innovation.
Journal: Applied Economics
Pages: 4474-4498
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1735623
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735623
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4474-4498




Template-Type: ReDIF-Article 1.0
Author-Name: Saleh Mamun
Author-X-Name-First: Saleh
Author-X-Name-Last: Mamun
Author-Name: Xiaoxue Li
Author-X-Name-First: Xiaoxue
Author-X-Name-Last: Li
Author-Name: Brady P. Horn
Author-X-Name-First: Brady P.
Author-X-Name-Last: Horn
Author-Name: Janie M. Chermak
Author-X-Name-First: Janie M.
Author-X-Name-Last: Chermak
Title: Private vs. public prisons? A dynamic analysis of the long-term tradeoffs between cost-efficiency and recidivism in the US prison system
Abstract: 
 Compared with the rest of the world, the US prison system is characterized by high incarceration rates, high recidivism, and substantial incarceration costs. The US has increasingly turned to private prisons, resulting in a debate concerning the efficacy of these private prisons. While the private system may produce cost savings it may have also have negative consequences including increased recidivism. Although numerous studies have investigated the cost savings associated with private prisons and their effect on recidivism, to our knowledge no work has evaluated the joint impact. In this paper we evaluate these impacts jointly within a dynamic system model, utilizing cost, incarceration and recidivism estimates from the literature. Overall, considering the tradeoff between cost efficiency and recidivism rates, we find that public prisons are less costly in the long term than private prisons. Considering a 25-year time horizon, we find that total inflation-adjusted costs are approximately 1.5% higher for private prisons than public prisons. Considering a 40-year time horizon, we find that private prisons are 3% more costly than public prisons. Thus, results suggest that estimated short-term cost efficiency provided by private prisons may not be worth the long-term consequences of potential increases in recidivism.
Journal: Applied Economics
Pages: 4499-4511
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1736501
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1736501
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4499-4511




Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Q. Mueller
Author-X-Name-First: Steffen Q.
Author-X-Name-Last: Mueller
Title: Pre- and within-season attendance forecasting in Major League Baseball: a random forest approach
Abstract: 
 This study explores the forecasting of Major League Baseball game ticket sales and identifies important attendance predictors by means of random forests that are grown from classification and regression trees (CART) and conditional inference trees. Unlike previous studies that predict sports demand, I consider different forecasting horizons and only use information that is publicly accessible in advance of a game or season. The models are trained using data from 2013 to 2014 to make predictions for the 2015 regular season. The static within-season approach is complemented by a dynamic month-ahead forecasting strategy. Out-of-sample performance is evaluated for individual teams and tested against different least-squares dummy variable regression models and a naïve lagged attendance forecast. My empirical results show high variation in team-specific prediction accuracy with respect to both models and forecasting horizons. Linear and tree-ensemble models, on average, do not vary substantially in predictive accuracy; however, least-squares regression fails to account for various team-specific peculiarities, despite accounting for team fixed effects and censoring attendance predictions to fit to stadium capacities.
Journal: Applied Economics
Pages: 4512-4528
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1736502
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1736502
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4512-4528




Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Mamais
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Mamais
Author-Name: Kleanthis Karvelas
Author-X-Name-First: Kleanthis
Author-X-Name-Last: Karvelas
Title: Feeling good, as a guide to performance: the impact of economic sentiment in financial market performance for Germany
Abstract: 
 During the financial crisis of 2007, the Economic Sentiment Indicator for Germany had already started the deepest drop in its history, reaching a new historical low in the second quarter of 2009. The drop was only temporary, as Germany became the de facto ‘safe heaven’ country and thus within 2 years the low became a sharp increase reaching a historical all-time high. The effect of ‘safe heaven’ country that Germany exhibited during the crisis and the resulting numbers for economic sentiment pose the question as to whether economic sentiment can be used to improve the positioning on the German financial market. We examine the link between sentiment and the performance of the German market, and how investors’ herd behaviour should have used such a sentiment signal to take advantage of, during the depression and beyond. We perform a careful sample-split analysis of both the characteristics of sentiment and financial market performance in various sub-periods from the 1990s until today and also use economic sentiment as a guide for timing the German stock market. In our analysis, economic sentiment acquires a leading guide role for investors in the German market.
Journal: Applied Economics
Pages: 4529-4541
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1736503
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1736503
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4529-4541




Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Malissa L. Davis
Author-X-Name-First: Malissa L.
Author-X-Name-Last: Davis
Author-Name: James V. Koch
Author-X-Name-First: James V.
Author-X-Name-Last: Koch
Author-Name: James William Saunoris
Author-X-Name-First: James William
Author-X-Name-Last: Saunoris
Title: The relationship between entrepreneurial activity and domestic gross state in-migration patterns in the U.S
Abstract: 
 Using the Kauffman indices of entrepreneurial activity, which effectively have been entirely overlooked in the domestic migration literature to date, this study seeks to investigate the relationship between entrepreneurial activity and domestic gross in-migration in the U.S. and whether that relationship is bi-directional. The two-part hypothesis being investigated here is that: (a) greater entrepreneurial activity in a state leads to a greater domestic gross in-migration rate, ceteris paribus, and (b) a greater domestic gross in-migration rate induces an increase in entrepreneurial activity, ceteris paribus. After including a number of control variables, luding geographic cost-of-living differentials and an index of aggregate labour market freedom, the most germane of the empirical findings obtained here, based on panel VAR estimation and Granger causality tests, is that the gross state-level in-migration rate in the U.S. has positively impacted the level of entrepreneurial activity. However, there is no compelling evidence that entrepreneurial activity influenced state-level gross in-migration. These results for domestic migration appear to be compatible with previous studies of international immigration to the U.S. and entrepreneurship.
Journal: Applied Economics
Pages: 4542-4556
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1737314
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1737314
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4542-4556




Template-Type: ReDIF-Article 1.0
Author-Name: Genyuan Zhong
Author-X-Name-First: Genyuan
Author-X-Name-Last: Zhong
Author-Name: Changling Zhou
Author-X-Name-First: Changling
Author-X-Name-Last: Zhou
Title: Product and process innovation: the implication of making comparisons between uniform pricing monopolist and second-degree price discriminating monopolist
Abstract: 
 The question of simultaneous product and process innovation, price discrimination is crucial for technologically-evolving industries. In this paper, we assume that there are two different kinds of consumers, and each consumer has his own demand function. We find that both process innovation and product innovation impact the pricing policy. Depending on the number of consumers, there may exist substitutability between process innovation and product innovation. Moving from single-price regime to second-degree price discrimination, we show that allowing price discrimination will increase investment levels in product and process innovation.
Journal: Applied Economics
Pages: 4557-4572
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1737642
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1737642
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4557-4572




Template-Type: ReDIF-Article 1.0
Author-Name: M. Kathleen Thomas
Author-X-Name-First: M. Kathleen
Author-X-Name-Last: Thomas
Author-Name: Kristin Klopfenstein
Author-X-Name-First: Kristin
Author-X-Name-Last: Klopfenstein
Title: Practice what you preach and be a control freak
Abstract: 
 Social science researchers focus on treatment conditions and participant behaviour when designing causal impact studies and ignore in-depth examination of control conditions, assuming dichotomy even when interventions and their comparisons are better conceived as latent variables distributed along a range of program elements. When there is overlap in the distributions of treatment and control program elements, a weak treatment-control contrast can arise even when participant behaviour is ideal and researchers understand treatment conditions. Failure to recognize and describe potential overlap between program elements in treatment and control conditions increases the probability of a null finding and thwarts research consumers attempting to make evidence-based policy decisions. Treatment differentiation requires a strong understanding of the control experience along the same dimensions used to establish treatment fidelity.
Journal: Applied Economics
Pages: 4573-4576
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1738325
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1738325
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4573-4576




Template-Type: ReDIF-Article 1.0
Author-Name: Jungtaek Lee
Author-X-Name-First: Jungtaek
Author-X-Name-Last: Lee
Author-Name: Juyeon Kim
Author-X-Name-First: Juyeon
Author-X-Name-Last: Kim
Title: The role of health insurance in mental health care for young adults
Abstract: 
 This study investigates the effect of health insurance on young adults’ utilization of mental health care, by exploiting the dependent coverage expansion that was an early provision of the Affordable Care Act. Using the National Health Interview Survey (NHIS) from 2011 to 2013, we utilize the regression discontinuity design to overcome the problem of endogeneity. There are two key findings. First, health insurance has increased young adults’ mental health care. Second, young adults’ physical health care has not been affected by health insurance. The results suggest that the use of mental health care might be more responsive to changes in health insurance coverage than the use of physical health care is. Furthermore, the effect of health insurance on mental health care utilization is heterogeneous across metal health statuses.
Journal: Applied Economics
Pages: 4577-4593
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1738326
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1738326
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4577-4593




Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Skevas
Author-X-Name-First: Ioannis
Author-X-Name-Last: Skevas
Title: Measurement of production inefficiency in a technology and inefficiency heterogeneity setting
Abstract: 
 This study shows how the estimates of production inefficiency and of the marginal effects of its determinants can be distorted if not accounting for technology and inefficiency heterogeneity. This is achieved by employing a hierarchical stochastic frontier model with random parameters both in the production frontier and in the inefficiency distribution and comparing its results with a conventional frontier model. German dairy farming is used as a case study and estimation is performed in a Bayesian framework. The results reveal significant differences in the inefficiencies and the calculated marginal effects of its determinants across the two models. Specifically, it is shown that inefficiency is overestimated when heterogeneity is not accounted for. An inflation of the means and the variances of the marginal effects is also observed, with the latter result suggesting that technology heterogeneity dominates inefficiency heterogeneity. According to Bayes factors, the employed hierarchical frontier model is favoured by the data when compared to the conventional frontier model.
Journal: Applied Economics
Pages: 4594-4604
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1738327
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1738327
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4594-4604




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Author-Name: Joanna Maria Stawska
Author-X-Name-First: Joanna Maria
Author-X-Name-Last: Stawska
Title: Governments as bankers - how European bonds have substituted bank deposits
Abstract: 
 The purpose of this article is to empirically analyse the relationship between marketable securities (government bonds and treasury bills) and bank deposits in European markets. Using a proper database and proper methodological framework, we will analyse this relationship for the last two decades observed in 32 European countries between 1990Q1 and 2018Q2. We specifically focus on the levels of issued treasury bills and government bonds, as well as on their shares in each country’s GDP. Our empirical results suggest the validation of the substitution hypothesis between bank deposits and marketable securities. This means that deposit holders tend to issue bills when they do not find the investment options from banks’ solutions or from bonds’ yields interesting.
Journal: Applied Economics
Pages: 4605-4620
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1738328
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1738328
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4605-4620




Template-Type: ReDIF-Article 1.0
Author-Name: María Torrado
Author-X-Name-First: María
Author-X-Name-Last: Torrado
Author-Name: Álvaro Escribano
Author-X-Name-First: Álvaro
Author-X-Name-Last: Escribano
Title: European gasoline markets: price transmission asymmetries in mean and variance
Abstract: 
 The main objective of this article is to analyse the different sources of asymmetric price transmissions in the fuel market for France, Germany and Spain. During the last decades, the EU has carried out several common energy policies to achieve more efficient and competitive markets. However, given the specific characteristics of each country, the question we want to address is if fuel prices across EU members behave differently in response to different market structures. Oil operators have been targeted by competition authorities for conducting non-competitive practices. To figure out whether the common complaint that gasoline prices adjust differently to positive or negative input price changes, dynamic asymmetric models for the mean and variance are developed for each country. Several asymmetric specifications for the mean and variance are considered. The best specification combines double threshold error correction models (DT-ECM) for the mean with asymmetric EGARCH plus an asymmetric dummy variable for the conditional variance. We show that French gasoline prices behave more competitively, adjusting quicker to the long-run equilibrium and with more price volatility. This outcome is consistent with the strong presence of hypermarkets following low-cost pricing strategies in France.
Journal: Applied Economics
Pages: 4621-4638
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1739224
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1739224
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4621-4638




Template-Type: ReDIF-Article 1.0
Author-Name: Simone Angioloni
Author-X-Name-First: Simone
Author-X-Name-Last: Angioloni
Author-Name: Ziping Wu
Author-X-Name-First: Ziping
Author-X-Name-Last: Wu
Title: Native-migrant labour substitution by industry and wage effects: evidence from the UK
Abstract: 
 Unlike previous studies, we estimate the native-migrant substitution elasticity (NME) differentiated by sector. To do so, we employ a straightforward estimation strategy that consists of adding slope-shifters to the reduced form of the labour demand equation to allow for sectoral differentiation and adjusting the restrictions on the efficiency parameters consequently. Our study contributes to the literature in three ways. First, this is the first example that estimates NME differentiated by industry. Second, previous studies assessed the effect of the past migration on wages. In contrast, we assess the impact of potential restrictions to unskilled EU labour in the UK and this can useful to design future immigration policies in the country. Third, our results contribute to understand the dynamics between migration and the domestic labour market in the UK and provide a lesson for other developed economies.
Journal: Applied Economics
Pages: 4639-4658
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1739613
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1739613
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4639-4658




Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Author-Name: A. Doruk Gunaydin
Author-X-Name-First: A. Doruk
Author-X-Name-Last: Gunaydin
Author-Name: Imra Kirli
Author-X-Name-First: Imra
Author-X-Name-Last: Kirli
Title: Decomposing value globally
Abstract: 
 This paper utilizes an international context and revisits the findings which argue that the positive relation between book-to-market ratio and future equity returns is driven by historical changes in firm size in the US. After confirming these results in the US setting both in the original and a more recent sample period, we find that they do not hold in regions outside the US. In the international sample, book-to-market ratio has a significantly positive relation with future equity returns even after changes in firm size are controlled for in regression analyses. This positive relation is again visible when the orthogonal component of book-to-market ratio (which is independent of changes in firm size) is used as a sorting variable in portfolio analyses. Country-level analyses confirm the findings from regional analyses.
Journal: Applied Economics
Pages: 4659-4676
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1739614
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1739614
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4659-4676




Template-Type: ReDIF-Article 1.0
Author-Name: Jingbo Luo
Author-X-Name-First: Jingbo
Author-X-Name-Last: Luo
Author-Name: Xiaorong Li
Author-X-Name-First: Xiaorong
Author-X-Name-Last: Li
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Title: Political uncertainty and labour investment efficiency
Abstract: 
 We examine the impact of political uncertainty on the labour investment efficiency (LIE) of a firm. Using a sample of Chinese firms, we test the market discipline and managerial entrenchment hypotheses. Our findings suggest that political uncertainty adversely affects LIE. The results are consistent with the managerial entrenchment hypothesis. That is, firms hire more labour in a period of increased information asymmetry due to the political uncertainty, which deteriorates LIE. Our findings are robust to a battery of alternative measures of LIE and estimation methods. We conduct several additional analyses and document that the adverse impact of political uncertainty is stronger when the newly appointed government official is older, the firm is state-owned, the firm belongs to a politically sensitive industry or the firm operates in locations with stringent labour protection. By contrast, when the firm locates in a region with weak Chinese government intervention or after President Xi Jinping’s anti-corruption campaign, the adverse impact of political uncertainty on LIE is less pronounced. Last, we document that after hiring more labour, firms receive tangible and intangible benefits in terms of receiving more loans, collect more government subsidies, and able to re-establish some political connection but at the cost of lower performance.
Journal: Applied Economics
Pages: 4677-4697
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1739615
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1739615
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4677-4697




Template-Type: ReDIF-Article 1.0
Author-Name: Phuong Thanh Le
Author-X-Name-First: Phuong Thanh
Author-X-Name-Last: Le
Author-Name: Hong-Oanh Nguyen
Author-X-Name-First: Hong-Oanh
Author-X-Name-Last: Nguyen
Title: Influence of policy, operational and market conditions on seaport efficiency in newly emerging economies: the case of Vietnam
Abstract: 
 Located in Southeast Asia as one of the most dynamic economic regions in the world and close to north-south shipping routes, Vietnam’s seaports play a vital role in promoting its international trade and economic growth. And yet, most ports are small and owned by the public sector. Their performance is subject to various factors relating to government policy, operational and market conditions. Although the Government has been trying to improve the sector’s performance through corporatization, its corporatization model is unique in many ways compared with reform models in other countries. This study seeks to analyse the effects of government policy, operational and market conditions among other factors, on Vietnamese seaports’ efficiency. Double-bootstrap data envelopment analysis (DEA) and univariate and multivariate analyses were conducted using the data sample of 41 ports for years 2015 and 2016. The analysis results show that the factors of production, regional location and reform policy had a significant impact on port performance.
Journal: Applied Economics
Pages: 4698-4710
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1740159
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1740159
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4698-4710




Template-Type: ReDIF-Article 1.0
Author-Name: Yafeng Qin
Author-X-Name-First: Yafeng
Author-X-Name-Last: Qin
Author-Name: Guoyao Pan
Author-X-Name-First: Guoyao
Author-X-Name-Last: Pan
Author-Name: Min Bai
Author-X-Name-First: Min
Author-X-Name-Last: Bai
Title: Improving market timing of time series momentum in the Chinese stock market
Abstract: 
 This paper is the first study to present firm-level evidence that the time-series momentum (TSMOM) strategies with look-back-period k of 10 to 200 days outperform the buy-and-hold strategy (BH) on individual stocks in the Chinese stock market. We document that the optimal k* generating the best performance is different across assets and varies over time. We hence propose a model to predict the asset-specific and time-dependent k*, and examine the performance of the TSMOM strategies with the predicted k*. Our analysis shows that using the time-varying predicted k* substantially improves the predictability of the TSMOM strategies. Our new model and findings shed the light on trading strategy for both academia and applied investment practitioners.
Journal: Applied Economics
Pages: 4711-4725
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1740160
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1740160
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4711-4725




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Maria Jua Bachelet
Author-X-Name-First: Maria Jua
Author-X-Name-Last: Bachelet
Author-Name: Fabio Pisani
Author-X-Name-First: Fabio
Author-X-Name-Last: Pisani
Title: Eudaimonic happiness as a leading health indicator: cross-country European evidence
Abstract: 
 Eudaimonic happiness (measured in terms of sense of life) is a relatively unexplored subjective wellbeing indicator. The empirical findings presented in this paper show that it has a significant and quantitatively remarkable correlation with the future insurgence of some chronic diseases and the reduction of most functionalities in the ageing population. These results document that eudaimonic happiness is a relevant leading indicator of future health outcomes and expenditure and that its correlation is independent from that of the traditional life satisfaction measure.
Journal: Applied Economics
Pages: 4726-4744
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1740161
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1740161
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4726-4744




Template-Type: ReDIF-Article 1.0
Author-Name: Xiyong Dong
Author-X-Name-First: Xiyong
Author-X-Name-Last: Dong
Author-Name: Changhong Li
Author-X-Name-First: Changhong
Author-X-Name-Last: Li
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Exogenous shocks, dynamic correlations, and portfolio risk management for the Asian emerging and other global developed and emerging stock markets
Abstract: 
 This study examines the potential influence of exogenous shocks on time-varying correlations and portfolio strategies between the Asian emerging and other global stock markets including developed and other emerging markets. Using the ARMA-cDCC-FIEGARCH model with and without exogenous shocks, our results highlight the usefulness of including other global stock assets in the traditional portfolio for Asian emerging market investors. However, investors have limited opportunities to diversify their assets during the global financial crisis. Moreover, the shocks from the U.S. stock market have a greater influence on global stock markets compared to that from U.S. economic policy. Fortunately, the model with exogenous shocks improves its accuracy, which plays the same role of controlling structural breaks in the model. More importantly, incorporating exogenous shocks in our model also provides better value-at-risk performance results and hedging effectiveness. These results have several important implications for investors, researchers, and policymakers.
Journal: Applied Economics
Pages: 4745-4764
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1743814
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1743814
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4745-4764




Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth Schroeder
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Schroeder
Title: The impact of microcredit borrowing on household consumption in Bangladesh
Abstract: 
 The rapid expansion of microcredit in recent years renders knowledge of its impact on poverty critical. Unfortunately, empirical investigations have been limited by endogeneity issues, and randomized controlled trials suffer from a lack of power. This article suggests a strategy for handling the endogeneity of microcredit borrowing without specifying instrumental variables, allowing for estimation using observational data. The model is identified by an assumption on the conditional second moments of the errors and estimated semiparametrically. I find that an increase in the amount borrowed from the Grameen Bank and similar institutions in Bangladesh has a positive and significant effect on per-capita household consumption. The estimated elasticity is in the range of 0.18 to 0.21. These estimates indicate that microcredit may be more effective than previously thought.
Journal: Applied Economics
Pages: 4765-4779
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1743815
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1743815
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4765-4779




Template-Type: ReDIF-Article 1.0
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: Biliang Luo
Author-X-Name-First: Biliang
Author-X-Name-Last: Luo
Author-Name: S. T. Boris Choy
Author-X-Name-First: S. T. Boris
Author-X-Name-Last: Choy
Author-Name: Xianlei Ma
Author-X-Name-First: Xianlei
Author-X-Name-Last: Ma
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Title: The demonstration effect of transactions between strangers on those between acquaintances: evidence from land rentals in rural China
Abstract: 
 Over the last decade, introducing outer village lessees has been an important approach to increasing the marketization of land rentals in rural China. However, with large numbers of informal features among acquaintances, the effect of introducing outer village lessees is ambiguous. In this paper, data from the 2015 China Household Finance Survey are used to analyse the demonstration effect of land rentals between strangers on those between acquaintances, and land rent is used to represent the marketization of land rentals. The estimated results indicate that with the emergence of outer village lessees, lessors transacting with acquaintances are more likely to obtain high land rents and to rent out farmland for profit. Evidence shows that profit motives are the key pathway by which the presence of outer village lessees affects land rents. The analysis using the sample of lessees supports our findings. Our analysis implies that the demonstration effect exists in land rental markets, and also provides a feasible instrument for promoting market-oriented land rentals between acquaintances.
Journal: Applied Economics
Pages: 4780-4793
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751051
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751051
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4780-4793




Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Michael Grimm
Author-X-Name-First: Michael
Author-X-Name-Last: Grimm
Title: Does foreign aid increase private investment? Evidence from panel cointegration
Abstract: 
 This article uses panel cointegration and causality techniques to examine the long run relationship between foreign aid and private investment. Our main result is that aid has a statistically significant negative effect on private investment. This result is robust to outliers, different measures and forms of aid, sample selection and the sample period. In addition, we find that long run causality runs in both directions, suggesting that an increase in aid reduces private investment and that, in turn, higher private investment leads to lower aid inflows.
Journal: Applied Economics
Pages: 2537-2550
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566183
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566183
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2537-2550




Template-Type: ReDIF-Article 1.0
Author-Name: Aekapol Chongvilaivan
Author-X-Name-First: Aekapol
Author-X-Name-Last: Chongvilaivan
Title: Learning by exporting and high-tech capital deepening in Singapore manufacturing industries, 1974–2006
Abstract: 
 A number of fundamental factors enhance the growth of industries’ productivity. Among others, the export-led and high-tech capital deepening strategies are widely adopted by developing economies. This article attempts to empirically investigate the extent to which both industrial development policies affect the Total Factor Productivity Growth (TFPG) in Singapore manufacturing industries during the period from 1974 to 2006. Using the panel data estimations, I find that both development strategies bring about TFPG via nonneutral technological growth, and the former more largely explains TFPG than does the latter. This study captures the measure of learning by exporting by the lagged export intensity and therefore contributes to the literature, in which only the case of whether or not firms are active in export markets is conventionally employed. Methodologically, my main contributions are a more detailed treatment of (nonneutral) technological changes, and an alternative measure of export intensity.
Journal: Applied Economics
Pages: 2551-2568
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566184
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566184
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2551-2568




Template-Type: ReDIF-Article 1.0
Author-Name: Yui Suzuki
Author-X-Name-First: Yui
Author-X-Name-Last: Suzuki
Title: Binding constraint on economic growth under export-oriented industrialization and globalization
Abstract: 
 The two-gap model of economic growth implies that different constraints on economic growth, namely the savings and the foreign exchange availability, are binding at different times. This article estimates these varying binding constraints in 16 countries in East and Southeast Asia and Latin America, and explores their differences across countries, regions and periods. I show that the East and Southeast Asian countries, which are recognized to be successful in export-oriented industrialization, are less constrained by the foreign exchange availability with reinforced export capacity than the Latin American countries, which had carried some inertia of import substituting industrialization policy until the 1980s. In addition, the economic growth turns out to be more constrained by the domestic savings in recent years, which can be a reflection of capital account liberalization policies typically implemented in the late 1980s and 1990s, and/or a diminishing return to export-led growth. In either case, this might be a factor underlining the recent reconsideration of export-oriented development strategy to balance past excessive dependence on the external demand in several countries in East and Southeast Asia.
Journal: Applied Economics
Pages: 2569-2576
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566185
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566185
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2569-2576




Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Tregenna
Author-X-Name-First: Fiona
Author-X-Name-Last: Tregenna
Title: What are the distributional implications of halving poverty in South Africa when growth alone is not enough?
Abstract: 
 The United Nations Millennium Declaration commits to halving extreme poverty between 2000 and 2015. The South African government has set a goal of halving poverty by 2014, although the meaning of this goal has not yet been defined. This article frames government's stated target of halving poverty by 2014 in terms of specific measures of the poverty gap and poverty headcount ratio, using income and expenditure survey microdata. With the poverty line as defined here, approximately half the South African population falls below the poverty line. Despite this, the aggregate poverty gap is surprisingly small at about 3% of gross domestic product. Projections of poverty in 2014 under various growth scenarios indicate that growth alone will be insufficient to halve poverty by then, and that any worsening of distribution will put the target of halving poverty by 2014 far beyond reach. However, projections of the effects of a range of growth and distributional scenarios on poverty, using a new method for simulating pro-poor distributional change, indicate that halving poverty appears feasible with moderate growth rates and fairly mild pro-poor distributional change. The results are indicative as to the scale of distributional changes necessary to halve poverty under various growth scenarios.
Journal: Applied Economics
Pages: 2577-2596
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566186
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566186
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2577-2596




Template-Type: ReDIF-Article 1.0
Author-Name: Myeong Hwan Kim
Author-X-Name-First: Myeong Hwan
Author-X-Name-Last: Kim
Author-Name: Nodir Adilov
Author-X-Name-First: Nodir
Author-X-Name-Last: Adilov
Title: The lesser of two evils: an empirical investigation of foreign direct investment-pollution tradeoff
Abstract: 
 This article investigates the relationship between Foreign Direct Investment (FDI) and pollution measured by carbon dioxide (CO2) emissions. The results suggest that while lax environmental regulations might attract FDI, the foreign companies utilize less polluting technology as compared to local firms in low-income countries. Thus, FDI does not necessarily increase pollution levels in the host countries. The findings, therefore, simultaneously support the pollution haven and the pollution halo hypotheses.
Journal: Applied Economics
Pages: 2597-2606
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566187
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566187
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2597-2606




Template-Type: ReDIF-Article 1.0
Author-Name: Jorge E. Araña
Author-X-Name-First: Jorge E.
Author-X-Name-Last: Araña
Author-Name: Carmelo J. León
Author-X-Name-First: Carmelo J.
Author-X-Name-Last: León
Title: Scale-perception bias in the valuation of environmental risks
Abstract: 
 The valuation of environmental risks is commonly approached with the utilization of stated preference methods such as contingent valuation. In these methods, money is utilized as the scale that reflects the individual's underlying utility function. However, this scale can vary across individuals due to different perceptions on what are the right or appropriate bounds for Willingness To Pay (WTP). In this article, we test for scale-perception bias and propose a correction method based on the utilization of anchoring vignettes that define different degrees of preference for the nonmarket good. The proposed method is applied to study the commonly found anomaly ‘probability neglect’, which is defined by the insensitivity to the probability levels in the valuation of environmental risks. The results show that probability neglect disappears when WTP responses are corrected for self-perception bias through the utilization of the anchoring vignettes approach.
Journal: Applied Economics
Pages: 2607-2617
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566188
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566188
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2607-2617




Template-Type: ReDIF-Article 1.0
Author-Name: Yeşim Kuştepeli
Author-X-Name-First: Yeşim
Author-X-Name-Last: Kuştepeli
Author-Name: Yaprak Gülcan
Author-X-Name-First: Yaprak
Author-X-Name-Last: Gülcan
Author-Name: Sedef Akgüngör
Author-X-Name-First: Sedef
Author-X-Name-Last: Akgüngör
Title: Transportation infrastructure investment, growth and international trade in Turkey
Abstract: 
 Investment in transportation infrastructure facilitate the movement of the goods; leading to higher standards of living for the people of the whole globe. Although infrastructure is indispensable to achieve the main development targets in developing countries, such as urbanization, industrialization and sustainable economic development (Kim, 2006), the relationship between infrastructure expenditures, economic growth and international trade is inconclusive. The aim of this study is to investigate the effect of investment on highway infrastructure on international trade and economic growth in Turkey for the period of 1970 to 2005. The empirical results from causality and cointegration analysis suggest only a very weak short run effect of share of exports in Gross National Product (GNP) on highway transportation expenditures but no long run relationships between highway infrastructure expenditures, economic growth and international trade in Turkey.
Journal: Applied Economics
Pages: 2619-2629
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566189
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566189
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2619-2629




Template-Type: ReDIF-Article 1.0
Author-Name: M. Ali Choudhary
Author-X-Name-First: M. Ali
Author-X-Name-Last: Choudhary
Author-Name: Adnan Haider
Author-X-Name-First: Adnan
Author-X-Name-Last: Haider
Title: Neural network models for inflation forecasting: an appraisal
Abstract: 
 We assess the power of diverse Artificial Neural-Network (ANN) models as forecasting tools for monthly inflation rates for 28 Organization for Economic Co-operation and Development (OECD) countries. In the context of short out-of-sample forecasting horizon we find that, on average, the ANN models were a superior predictor for inflation for 45% while the Autoregressive model of order one (AR1) model performed better for 23% of the countries. Furthermore, we develop arithmetic combinations of several ANN models and find that these may also serve as credible tools for forecasting inflation.
Journal: Applied Economics
Pages: 2631-2635
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566190
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566190
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2631-2635




Template-Type: ReDIF-Article 1.0
Author-Name: Jürgen Antony
Author-X-Name-First: Jürgen
Author-X-Name-Last: Antony
Author-Name: Thomas Grebel
Author-X-Name-First: Thomas
Author-X-Name-Last: Grebel
Title: Technology flows between sectors and their impact on large-scale firms
Abstract: 
 In this article we highlight the importance of technology flows between sectors and their impact on the labour productivity of large-scale corporations. Based on theoretical considerations, we explore technological spillovers between the sectors of an economy. Large-scale corporations usually focus on certain sectors but make use of a wide range of technological knowledge from other sectors. Thereby, technological knowledge built up in sectors by continuous R&D activities does not spill over without bounds but is directed by firms’ absorptive capacities. We use firms’ patent portfolio to empirically calculate the sector affiliation and therewith the firms’ absorptive capacities in order to estimate the impact of technology diffusion on labour productivity. Fortune 500 firms serve as data base.
Journal: Applied Economics
Pages: 2637-2651
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566191
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566191
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2637-2651




Template-Type: ReDIF-Article 1.0
Author-Name: Nick Drydakis
Author-X-Name-First: Nick
Author-X-Name-Last: Drydakis
Title: Sexual orientation and labour relations: new evidence from Athens, Greece
Abstract: 
 We use data from the 2008–2009 Athens Area Study (AAS) to provide the first evidence on the relationship between men's sexual orientation and wages in the Greek capital, Athens. Gay and bisexual men are found to receive significantly lower monthly wages than heterosexual male workers after accounting for demographic and occupational characteristics. The estimations reveal that educated gay and bisexual workers face lower wage differentials than less-educated gay and bisexual workers, which is consistent with the statistical theory of discrimination. However, wage gaps are significant at all educational attainment levels, suggesting that these workers face strong prejudices in the Athenian labour market. The same pattern holds also across all occupations and sectors. Furthermore, to better understand the determinants of the wage gaps, we compare gay/bisexual men with both married and unmarried heterosexual men. By making these comparisons, we are able to disentangle the penalty associated with being unmarried from other human-capital explanations for the wage gap.
Journal: Applied Economics
Pages: 2653-2665
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566194
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566194
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2653-2665




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Hashemi Joo
Author-X-Name-First: Mohammad
Author-X-Name-Last: Hashemi Joo
Author-Name: Yuka Nishikawa
Author-X-Name-First: Yuka
Author-X-Name-Last: Nishikawa
Author-Name: Krishnan Dandapani
Author-X-Name-First: Krishnan
Author-X-Name-Last: Dandapani
Title: Announcement effects in the cryptocurrency market
Abstract: 
 Cryptocurrencies have gained popularity as new economic investment assets globally in recent years. This study examines market reactions to major news events associated with cryptocurrencies. Abnormal returns as well as cumulative abnormal returns (CARs) around major news announcements, both positive and negative, are investigated for three primary cryptocurrencies: Bitcoin, Ethereum, and Ripple. High abnormal returns are observed on the event day (Day 0), and CARs typically diverge during event windows of (−3, 6) and (0, 6), indicating that the information is not fully reflected in prices immediately after the news events. The CARs that linger for six days after an event suggest that the information flow in the cryptocurrency market is visibly slow. The magnitudes of CARs are larger for negative events than for positive events, implying that the market reaction to negative events is stronger than to positive announcements. The findings of this study may have crucial implications for investors, arbitragers and practitioners as we document evidence of potential trading opportunities for investors who initiate a trading position even after announcements.
Journal: Applied Economics
Pages: 4794-4808
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1745747
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745747
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4794-4808




Template-Type: ReDIF-Article 1.0
Author-Name: Ayako Saiki
Author-X-Name-First: Ayako
Author-X-Name-Last: Saiki
Author-Name: Jon Frost
Author-X-Name-First: Jon
Author-X-Name-Last: Frost
Title: Unconventional monetary policy and inequality: is Japan unique?
Abstract: 
 Unconventional monetary policy (UMP) influences inequality through two channels that work in opposite directions – a labour market channel (more employment, higher wages) and a financial market channel (higher asset prices). In an earlier paper, covering UMP through 2014, we found that UMP in Japan had contributed to greater income inequality through its effects on asset prices. With a longer time period, a richer dataset including labour market data, and a structural vector autoregression (SVAR) we confirm that these results continue to hold, and investigate why UMP’s impact on inequality in Japan differs from some other countries. We argue that Japanese structural issues may mute the labour market channel, especially: (i) labour market rigidity; and (ii) the large share of the population that is older than 65 years old or retired. The older cohort’s capital gains and dividends are re-saved in other financial assets, instead of being consumed or used for starting businesses. At the same time, wages have not increased despite the severe labour shortage, due to the frictions in Japan’s labour market. We conclude that these factors may make the inequality created by UMP in Japan unique by international comparison.
Journal: Applied Economics
Pages: 4809-4821
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1745748
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745748
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4809-4821




Template-Type: ReDIF-Article 1.0
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Title: Market competition and corporate performance: empirical evidence from China listed banks with financial monopoly aspect
Abstract: 
 Theorists and policy experts generally believe that the higher degrees of financial monopoly and lower degrees of market competition can result in the higher performance level of companies especially in an imperfect competitive market. The banking industry is an excellent field for which to test market monopoly power and performance. In this study, we analysed data from up to 16 selected listed commercial banks in China from 2006 to 2015. The study utilized the improved Lerner index to elucidate their degree of monopoly power, respectively. Alongside this analysis, a balanced panel data model was utilized to calculate a least squares estimation, maximum likelihood estimation and generalized moment estimation processes. The results show that the state-owned commercial banks in China have poor competitiveness due to the limitations of their system of operation and the limitations in the banks’ ability to make decisions, as they are highly influenced by state macro-policies. Actually, China’s distorted financial monopoly has resulted in the poor performance of banks in the long-term, and indirectly resulted in the waste of national resources and limitation of financial policies. The relationship between the choice of operational model and the performance of listed commercial banks is mainly dictated by their natural monopoly position although such degree will deeply distort by unreasonable financial policy.
Journal: Applied Economics
Pages: 4822-4833
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1745749
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745749
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4822-4833




Template-Type: ReDIF-Article 1.0
Author-Name: Nasri Harb
Author-X-Name-First: Nasri
Author-X-Name-Last: Harb
Author-Name: Tony Rouhana
Author-X-Name-First: Tony
Author-X-Name-Last: Rouhana
Title: Earnings and gender wage gap in Lebanon: the role of the human and social capital
Abstract: 
 This paper investigates the earning function and the gender wage gap in Lebanon using human and social capital covariates. The study uses a randomly collected sample from the Lebanese working population in the greater Beirut area applying the counterfactual decomposition and the generalized quantile regressions. Most of the results support previous research which concludes that the human and social capital indicators have a significant impact on earnings and that the wage gap is mainly due to structural effect. Moreover, the results show evidence of quicksand and glass ceiling effects that limit female income.
Journal: Applied Economics
Pages: 4834-4849
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1745750
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745750
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4834-4849




Template-Type: ReDIF-Article 1.0
Author-Name: Kwangil Bae
Author-X-Name-First: Kwangil
Author-X-Name-Last: Bae
Author-Name: Hankil Kang
Author-X-Name-First: Hankil
Author-X-Name-Last: Kang
Author-Name: Jangkoo Kang
Author-X-Name-First: Jangkoo
Author-X-Name-Last: Kang
Title: Can fat-tail create the momentum and reversal?
Abstract: 
 We suggest that fat-tail variations can cause both short-term momentum and long-term reversal simultaneously, in both the time series and cross-sectional returns of securities. The fat-tail of the distribution is known to explain many anomalies in the financial market, but not momentum. To support our argument, we adopt widely accepted models in the literature, which generate reversal only, and revise a single assumption: Each random variable follows a non-normal stable distribution rather than a normal distribution. This single difference generates additional short-term return momentum. This finding shows that 1) investor irrationality is not essential to generate both phenomena, and 2) we must be cautious not to overuse normal distributions in the models.
Journal: Applied Economics
Pages: 4850-4863
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1746481
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1746481
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4850-4863




Template-Type: ReDIF-Article 1.0
Author-Name: Lan Thanh Archer
Author-X-Name-First: Lan Thanh
Author-X-Name-Last: Archer
Author-Name: Parmendra Sharma
Author-X-Name-First: Parmendra
Author-X-Name-Last: Sharma
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Title: Do credit constraints always impede innovation? Empirical evidence from Vietnamese SMEs
Abstract: 
 Intrigued by literature findings that credit constrained firms are less likely to be innovative and bearing in mind that the evidence has so far largely been from developed economies, this study ventures to explore the relationship in the case of a developing economy. Focussing on Vietnam, using a biennial survey-based dataset spanning the 2005–2013 period, with around 2,500 SMEs per round, and a mix of econometric strategies, the findings of the study shed a new light in the literature on credit constraints vis-à-vis innovation relationships: credit constraints may not always impede innovation. Implications are discussed.
Journal: Applied Economics
Pages: 4864-4880
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751049
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751049
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4864-4880




Template-Type: ReDIF-Article 1.0
Author-Name: Aakrit Joshi
Author-X-Name-First: Aakrit
Author-X-Name-Last: Joshi
Author-Name: Brady P. Horn
Author-X-Name-First: Brady P.
Author-X-Name-Last: Horn
Author-Name: Robert P. Berrens
Author-X-Name-First: Robert P.
Author-X-Name-Last: Berrens
Title: Major league soccer expansion and property values: do sports franchises generate amenities or disamenities?
Abstract: 
 While amenity effects generated by sports stadiums or facilities have been studied extensively for housing markets, there has been significantly less attention focused on team effects generated by sports franchises alone. The objective of this analysis is to estimate the impact of Major League Soccer (MLS) expansion on property values, using nearby condominium sales from 2003–2016 in Seattle, Washington. Econometric results from hedonic pricing method and repeat sales regression indicate that property values depreciated after the Seattle Sounders Football Club was promoted to the MLS in 2009. The distance-decaying depreciation in condominium values occurs within a mile of the facility.
Journal: Applied Economics
Pages: 4881-4899
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751050
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751050
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4881-4899




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Rosa Borges
Author-X-Name-First: Maria Rosa
Author-X-Name-Last: Borges
Author-Name: Lauriano Ulica
Author-X-Name-First: Lauriano
Author-X-Name-Last: Ulica
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Title: Systemic risk in the Angolan interbank payment system – a network approach
Abstract: 
 In this work, we analyse the topology of the network of interbank payment flows settled via the real-time gross settlement system (RTGS) of the Angolan payment system (APS) during the fourth quarter of 2016, with the aim of discussing the APS resilience to systemic risk, focusing on its vulnerability in case of failures in the settlement of any bank payments. We conclude that (i) the Angolan RTGS payment network is sparse, characterized by low connectivity, (ii) it is a scale-free network with five banks with high connectivity, representing the main origin and destination of the settled transactions and concentrating about 47% of the total volume and amount of payments settled, which adds to contagion risk. However (iii) the systemic risk arising from the removal of a single participant from the network is low, since the largest bank in the system, with the greatest transacted volume and amount, accounts only for about 11% of the total transacted amounts. In addition, (iv) the adequate risk-mitigating operational processes of each of the RTGS subsystems safeguard the APS from systemic risk.
Journal: Applied Economics
Pages: 4900-4912
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751052
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751052
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4900-4912




Template-Type: ReDIF-Article 1.0
Author-Name: F. Javier Sánchez-Vidal
Author-X-Name-First: F. Javier
Author-X-Name-Last: Sánchez-Vidal
Author-Name: Myriam Hernández-Robles
Author-X-Name-First: Myriam
Author-X-Name-Last: Hernández-Robles
Author-Name: Antonio Mínguez-Vera
Author-X-Name-First: Antonio
Author-X-Name-Last: Mínguez-Vera
Title: Financial conservatism fosters job creation during economic crises
Abstract: 
 This article aims to analyse the phenomenon of financial conservatism in firms’ capital structures and relate it to their employment variation for a sample of Spanish companies during the 2008–2013 period, characterized by a sharp crisis and very high unemployment rates. Financial conservatism is described as following a low-leverage/high cash no-short-term capital structure policy. We use the noisy selection model that relates growth, age, and size, to which we add a dummy indicating financial conservatism. As the growth of a company is measured as its number of employees’ variation, we are ultimately analysing how financial conservatism affects job creation. The objective of this work is to stress the advantages of a financially conservative policy as the evidence shows that such a policy at a given enterprise is a positive factor for job creation, which in Macroeconomics terms means an improvement in economy’s employment. The average conservative company more likely to foster job creation is a small company belonging to the industry or services sector.
Journal: Applied Economics
Pages: 4913-4926
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751053
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751053
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4913-4926




Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Amine Boutabba
Author-X-Name-First: Mohamed Amine
Author-X-Name-Last: Boutabba
Author-Name: Diadié Diaw
Author-X-Name-First: Diadié
Author-X-Name-Last: Diaw
Author-Name: Amandine Laré
Author-X-Name-First: Amandine
Author-X-Name-Last: Laré
Author-Name: Albert Lessoua
Author-X-Name-First: Albert
Author-X-Name-Last: Lessoua
Title: The impact of microfinance on energy access: a case study from peripheral districts of Lomé, Togo
Abstract: 
 This study seeks to understand the impact of microfinance on energy access in the peripheral districts of Lomé in Togo. We use descriptive statistics, multiple regression, propensity score matching and treatment effect models, involving 639 microfinance client and non-client households for the analysis. Our results show that microfinance reduces energy vulnerability, with microfinance clients having higher energy poverty indices and energy expenditures than non-client households. Based on the impact of microfinance on energy poverty reduction, we argue that it is important for policymakers to implement strategies that promote and create greater access to microfinance, as this has the potential to alleviate energy poverty and improve access to good quality, modern energy services in Togo.
Journal: Applied Economics
Pages: 4927-4951
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751800
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751800
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4927-4951




Template-Type: ReDIF-Article 1.0
Author-Name: Wongi Kim
Author-X-Name-First: Wongi
Author-X-Name-Last: Kim
Title: Impacts of RMB devaluation on China’s trade balances: a time-varying SVAR approach
Abstract: 
 In this article, I empirically examine time-varying effects of real renminbi (RMB) devaluation on China’s trade balances. To this end, I estimate a time-varying structural vector autoregression model with monthly data. Results demonstrated that effects of real RMB devaluation on China’s trade balances are time varying. In a few months after devaluation of RMB, trade balances worsen as predicted in J-curve theory in most sample periods. However, subsequent improvements of trade balances predicted in J-curve theory appear only in certain periods, particularly in 2000s. Finally, devaluation of RMB positively affects China’s GDP and OECD industrial production, although the size of effects varies across sample periods. Joining WTO, the global financial crisis and endogenous feedbacks induced by price effects seem to be important to understand these time-varying patterns.
Journal: Applied Economics
Pages: 4952-4966
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751801
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751801
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4952-4966




Template-Type: ReDIF-Article 1.0
Author-Name: Lori Tzu Yi Yang
Author-X-Name-First: Lori Tzu Yi
Author-X-Name-Last: Yang
Title: The influence of Taiwan’s stock market on Bitcoin’s price under Taiwan’s monetary policy threshold
Abstract: 
 This study uses a smooth transition autoregressive model with exogenous variables (STARX) to investigate whether there is a nonlinear relationship between Bitcoin and Taiwan’s stock market taking into account Taiwan’s monetary policy threshold during 2 February 2012 to 31 August 2019. The statistical results show there is a threshold effect and confirm a nonlinear relationship between Taiwan’s stock market and Bitcoin, with variations over time and across Bitcoin and Taiwan’s stock market. Specifically, we find that Bitcoin responds asymmetrically to Taiwan’s stock market according to the threshold value. Furthermore, the return on the closing price of TAIEX with a lag of two periods under Taiwan’s monetary policy threshold has a nonlinear impact on the return on the closing price of Bitcoin.
Journal: Applied Economics
Pages: 4967-4975
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751802
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751802
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4967-4975




Template-Type: ReDIF-Article 1.0
Author-Name: William Miles
Author-X-Name-First: William
Author-X-Name-Last: Miles
Title: Regional UK house price co-movement
Abstract: 
 Cyclical synchronization of home prices has important implications for monetary (and other) policies. Regional house price divergence, even over a business cycle, can inhibit labour mobility and prevent workers from moving to where they could add most to their own wages and overall growth. We study house price co-movement across the different UK regions with a method, that, unlike previously employed techniques, allows for time-varying estimates. We find first, that the UK exhibits more home price divergence compared to previously reported results for the US. Second, regions near London exhibit the most co-movement, and those further from London the most divergence. Third, London itself is in the ‘middle of the pack’ in terms of synchronization compared to other regions. This may reflect London’s status as a ‘global city’ and being the destination for housing demand from sources abroad. Lastly, segmentation has clearly been increasing, rather than decreasing in recent years.
Journal: Applied Economics
Pages: 4976-4991
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1752361
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752361
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4976-4991




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Cheng Wu
Author-X-Name-First: Ming-Cheng
Author-X-Name-Last: Wu
Author-Name: Andrew Yi-Hung Liang
Author-X-Name-First: Andrew Yi-Hung
Author-X-Name-Last: Liang
Author-Name: Lori Tzu-Yi Yang
Author-X-Name-First: Lori Tzu-Yi
Author-X-Name-Last: Yang
Author-Name: Chin-Mei Chou
Author-X-Name-First: Chin-Mei
Author-X-Name-Last: Chou
Title: The non-linear impact of oil price on the oil demand
Abstract: 
 A panel smooth transition regression model was adopted to analyse the non-linear impact of oil prices on oil demand. Data for 42 countries was obtained from the International Energy Agency for the time period spanning from January 1990 to June 2017. The results indicate that a threshold value does exist. Furthermore, when the oil price was lower than this threshold value, a positive relationship between oil price and oil demand was observed. When the price of oil was higher than the threshold value, however, a negative relationship between price and demand was found.
Journal: Applied Economics
Pages: 4992-5004
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1752898
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752898
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4992-5004




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Chieh Wen
Author-X-Name-First: Yi-Chieh
Author-X-Name-Last: Wen
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: Lagged country returns and international stock return predictability during business cycle recession periods
Abstract: 
 This study examines stock return predictability in business cycle ﬂuctuations across 17 developed countries and 26 developing countries over the period from January 1970 to December 2019. We uncover that lagged U.S. returns can be regarded as a reliable predictor only during recessions. The results remain robust after controlling for commonly used return predictors. Our empirical findings carry some implications for the role of leading markets, fundamental uncertainty, change in investors’ beliefs and dynamics of stock return volatility in economic downturns.
Journal: Applied Economics
Pages: 5005-5019
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752899
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752899
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5005-5019




Template-Type: ReDIF-Article 1.0
Author-Name: Pawel Dobrzanski
Author-X-Name-First: Pawel
Author-X-Name-Last: Dobrzanski
Title: The efficiency of spending on R&D in Latin America region
Abstract: 
 Innovativeness is one of the key factors stimulating economic growth. Improving innovative capacities is especially important for developing countries. The Latin American region is characterized by a variety of innovation policies. In this article, the author attempts to answer the question of which Latin American countries most efficiently spend funds on R&D. The study presented in this article also verifies the hypothesis that increased spending on R&D does not result in a proportional increase in the intended innovative results. The main research methodology employed is data envelopment analysis (DEA), which allows for assessing input-output efficiency and indicates the efficiency frontier for the period between 2000 and 2017.
Journal: Applied Economics
Pages: 5020-5034
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752900
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752900
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5020-5034




Template-Type: ReDIF-Article 1.0
Author-Name: Haomin Zhang
Author-X-Name-First: Haomin
Author-X-Name-Last: Zhang
Author-Name: Zhijun Lin
Author-X-Name-First: Zhijun
Author-X-Name-Last: Lin
Author-Name: Ming Liu
Author-X-Name-First: Ming
Author-X-Name-Last: Liu
Author-Name: Kai Wang
Author-X-Name-First: Kai
Author-X-Name-Last: Wang
Title: Customer concentration and over-investment
Abstract: 
 This paper investigates the impact of customer concentration on a supplier firm’s over-investment behaviour. Based on a large sample analysis on the US market, we find that a supplier firm with higher degree of customer concentration is likely to over-invest beyond the optimal investment level determined by investment opportunities. We also reveal that the positive association between customer concentration and over-investment weakens when the largest customer is a government entity, when the duration of supplier–customer relationship extends, and when the supplier firm captures larger market shares in its industry.
Journal: Applied Economics
Pages: 5035-5045
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752901
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752901
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5035-5045




Template-Type: ReDIF-Article 1.0
Author-Name: Taewoo You
Author-X-Name-First: Taewoo
Author-X-Name-Last: You
Title: Behavioural biases and nonlinear adjustment: evidence from the housing market
Abstract: 
 Using the threshold vector error correction model, this study finds substantial evidence for asymmetric mean-aversion in the Korean housing market, arising from behavioural biases. In order to effectively capture behavioural biases from the prospect theory, special attention is paid to the extreme tails of price deviations from long-run rationality. The major findings are highly consistent with the prospect theory predicting the risk-aversion effect after prior losses and the house money effect after prior gains. The overall speed of adjustment at losses is assessed about 7 times as high as at gains. The evidence that price changes are serially dependent, even after controlling the behavioural biases, suggests that house prices are also driven by investors’ extrapolative expectation.
Journal: Applied Economics
Pages: 5046-5059
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752902
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752902
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5046-5059




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: Niranjan Sapkota
Author-X-Name-First: Niranjan
Author-X-Name-Last: Sapkota
Title: Predicting cryptocurrency defaults
Abstract: 
 We examine all available 146 Proof-of-Work-based cryptocurrencies that started trading prior to the end of 2014 and track their performance until December 2018. We find that about 60% of those cryptocurrencies were eventually in default. The substantial sums of money involved mean those bankruptcies will have an enormous societal impact. Employing cryptocurrency-specific data, we estimate a model based on linear discriminant analysis to predict such defaults. Our model is capable of explaining 87% of cryptocurrency bankruptcies after only one month of trading and could serve as a screening tool for investors keen to boost overall portfolio performance and avoid investing in unreliable cryptocurrencies.
Journal: Applied Economics
Pages: 5060-5076
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752903
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752903
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5060-5076




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: José L. Ruiz-Alba
Author-X-Name-First: José L.
Author-X-Name-Last: Ruiz-Alba
Author-Name: Raquel Ayestarán
Author-X-Name-First: Raquel
Author-X-Name-Last: Ayestarán
Title: UK tourism arrivals and departures: seasonality, persistence and time trends
Abstract: 
 Issues such as seasonality, persistence and trends are examined in the series referring to the number of UK arrivals and departures using techniques based on fractional integration. This methodology is much more flexible than others based on integer degrees of differentiation and permits us to describe in a more general way the effects of shocks in the series. Our results indicate that the series display significant time trends; they show high persistence with orders of integration in the fractional range, thus showing long-lasting effects of shocks; seasonality is an important issue, and in removing the seasonality through seasonal differentiation, the time trends disappear though persistence remains as a relevant feature of the data. Policy implications of the results obtained are displayed at the end of the article.
Journal: Applied Economics
Pages: 5077-5087
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752904
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752904
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5077-5087




Template-Type: ReDIF-Article 1.0
Author-Name: Fu-Wei Huang
Author-X-Name-First: Fu-Wei
Author-X-Name-Last: Huang
Title: A simple model of financial grey rhino under insurer capital regulation
Abstract: 
 This paper develops a contingent claim model to examine how capital regulation affects an insurer’s optimal guaranteed rate and survival probability when the investment-oriented/life insurance policy-oriented financial grey rhino is complemented. The investment-oriented grey rhino effect increases the policies at an increased guaranteed rate (and thus a decreased interest margin) and further decreases the insurer’s survival probability. The policy-oriented grey rhino effect decreases the guaranteed rate and further decreases the survival probability. Stringent capital regulation enhances both the guaranteed rate and the insurer’s survival, thereby contributing to insurance stability. Both the enhanced effects become more significant when either the increased investment-oriented or policy-oriented financial grey rhino effect is considered, in particular, in a down-and-out call option framework model.
Journal: Applied Economics
Pages: 5088-5097
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752905
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752905
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5088-5097




Template-Type: ReDIF-Article 1.0
Author-Name: Philipp Grunau
Author-X-Name-First: Philipp
Author-X-Name-Last: Grunau
Author-Name: Julia Lang
Author-X-Name-First: Julia
Author-X-Name-Last: Lang
Title: Retraining for the unemployed and the quality of the job match
Abstract: 
 In Germany, retraining is an important measure in active labour market policy, providing unemployed individuals with extensive vocational training. Using administrative data, we show that retraining participants are more likely to take up jobs that require their educational degree and are more often employed in those occupations for which they have received vocational training. Moreover, retraining leads to higher earnings. As these effects may be driven by the positive impact of retraining on employment, we additionally try to isolate the direct effect by restricting our analyses to those formerly unemployed who find employment irrespective of participation in retraining.
Journal: Applied Economics
Pages: 5098-5114
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1753879
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1753879
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5098-5114




Template-Type: ReDIF-Article 1.0
Author-Name: J. Dávalos
Author-X-Name-First: J.
Author-X-Name-Last: Dávalos
Author-Name: M. Claure
Author-X-Name-First: M.
Author-X-Name-Last: Claure
Author-Name: A. Leytón
Author-X-Name-First: A.
Author-X-Name-Last: Leytón
Title: The gender effects of the minimum wage under weak compliance with labour regulations: the case of Bolivia
Abstract: 
 This paper contributes to the minimum wage (MW) literature by providing new evidence on the gender effects of the MW in the context of weak compliance with labour regulations. We study Bolivia’s case, the country with the highest informal employment share in Latin America according to the International Labour Organization, during a favourable macroeconomic context characterized by a commodities boom that should have eased compliance with an active MW legislation. From a pooled cross-section of household surveys from 2005 to 2013 and a generalized difference-in-difference specification, we find evidence that the MW widened the hourly wage gender gap, and had negative effects on the formalization likelihood. Our findings stress the importance of enforcing compliance with the minimum wage legislation to reduce the gender wage gap.
Journal: Applied Economics
Pages: 5115-5128
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1754328
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1754328
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5115-5128




Template-Type: ReDIF-Article 1.0
Author-Name: Viktors Ajevskis
Author-X-Name-First: Viktors
Author-X-Name-Last: Ajevskis
Title: The natural rate of interest: information derived from a shadow rate model
Abstract: 
 The study proposes an estimation method of the natural rate of interest based on the shadow rate term structure of interest rates model and using information from nominal yields data. For the purpose of comparison and robustness check, different samples for the estimation of the natural rate of interest – three for the euro area and two for the US – are considered. The estimates based on all considered samples show a downturn trend in the estimated natural rates of interest for the euro area. However, since the beginning of 2013, this downward trend has levelled off. Compared to the results obtained by affine models, the shadow rate model produces lower estimates of the natural rates of interest. In order to demonstrate the use of the natural rate of interest, we employ the estimated series of the natural rate of interest in the balance-approach version of the Taylor rule. The results imply that, at the end of the sample in July 2017, Taylor rule-suggested policy rates were in line with the actual ECB policy rates.
Journal: Applied Economics
Pages: 5129-5138
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1757029
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1757029
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5129-5138




Template-Type: ReDIF-Article 1.0
Author-Name: Dae-Yong Ahn
Author-X-Name-First: Dae-Yong
Author-X-Name-Last: Ahn
Title: Competition and mergers in the retail market for toys
Abstract: 
 I study competition between big box retailers, K-Mart and Wal-Mart, and toy retailers, KB Toys and Toys R Us with the aim of estimating Wal-Mart’s effect on the profits of toy retailers. Using recent techniques for the moment inequality models, I estimate chains’ exit decisions in each market as arising from a Nash equilibrium of a static game of entry and exit. My results show that Wal-Mart has a significantly negative effect on the profits of KB Toys and Toys R Us, while the effects of KB Toys and Toys R Us are mostly positive on each other’s profits. I run a series of counterfactual simulations to study the effect of a merger between KB Toys and Toys R Us on post-merger market shares and concentration. Upon merging, the rate of exit drops from 52.3% to 48.6% for KB Toys and from 32.1% to 11.7% for Toys R Us. If the merging parties share distribution centres, the rate of exit drops even further to 31.1% for KB Toys or remains about the same at 12.2% for Toys R Us. Surprisingly, the merger lowers market concentration, as measured by the Herfindal–Hirschman Index.
Journal: Applied Economics
Pages: 5139-5157
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1757030
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1757030
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5139-5157




Template-Type: ReDIF-Article 1.0
Author-Name: Bekzod Sarikov
Author-X-Name-First: Bekzod
Author-X-Name-Last: Sarikov
Author-Name: Alexey Kuprianov
Author-X-Name-First: Alexey
Author-X-Name-Last: Kuprianov
Title: The effect of monetary policy on corporate bankruptcies: evidence from the United States
Abstract: 
 In this article, we study the relationship between monetary policy and corporate bankruptcies in the USA. The main hypothesis is that an increase in the monetary base or a decrease in the federal funds rate reduces the probability of corporate bankruptcies. The main intuition lies in the economic mechanism through which both of these actions accelerate inflation and lower the real value of corporate debt. The results strongly support the main hypothesis of the paper. In addition, we also study the impact of other macroeconomic variables on bankruptcy rates. Our findings show that the total reserves of depositary institutions and the overall performance of the US corporate sector are negatively related to the frequency of corporate failures.
Journal: Applied Economics
Pages: 5158-5168
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1757612
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1757612
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5158-5168




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Miin Yu
Author-X-Name-First: Ming-Miin
Author-X-Name-Last: Yu
Author-Name: Nan-Hsing Hsiung
Author-X-Name-First: Nan-Hsing
Author-X-Name-Last: Hsiung
Author-Name: Li-Hsueh Chen
Author-X-Name-First: Li-Hsueh
Author-X-Name-Last: Chen
Title: Determinants of banks’ Nerlovian economic efficiency: a DEA-bootstrap approach
Abstract: 
 This study aims to evaluate the Nerlovian economic efficiency of Taiwanese commercial banks and its determinants by assuming the presence of an imperfectly competitive market using a two-stage estimation procedure: Nerlovian economic inefficiency and its components’ price, technical and allocative efficiencies computed and decomposed in the first stage, which are regressed on the explanatory variables with a bootstrapped truncated approach in the second stage. The estimation results show that in the first-stage analysis, the Nerlovian economic inefficiency of banks is primarily due to allocative inefficiency, and indicate the existence of price inefficiency in Taiwan. In the second-stage analysis, the results confirm that both the years in operation of the bank and the ratio of credit loans are the main determinants of banking profit efficiency. In addition, this study not only shows that publicly owned banks contribute to better price efficiency but also proves that loan loss reserve to total assets is negatively associated with technical efficiency. The equity ratio exerts an insignificant favourable impact on allocative efficiency. The findings of this research are essential for bank managers in Taiwan.
Journal: Applied Economics
Pages: 5169-5187
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1758619
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1758619
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5169-5187




Template-Type: ReDIF-Article 1.0
Author-Name: John Nkwoma Inekwe
Author-X-Name-First: John Nkwoma
Author-X-Name-Last: Inekwe
Title: Bank credit risk, grain production and the Indian economy
Abstract: 
 We generate measures of banking risk across Indian states and examine the relationship between banking risk and economic production in India. We find that banking risk co-moves with total grain production (TPG) and real gross domestic product (RGDP). The long-term impact of banking risk differs across Indian states. Ten states are negatively affected while one state maintains growth in RGDP. Likewise, the results show that six states are negatively affected while two states maintain growth in TPG. Banking risk is found to induce a larger decline in TPG than in RGDP at the national and state levels. Overall, banking risk shocks induce negative effects on both TPG and RGDP.
Journal: Applied Economics
Pages: 5188-5202
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1758620
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1758620
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5188-5202




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Fernandez-Perez
Author-X-Name-First: Adrian
Author-X-Name-Last: Fernandez-Perez
Author-Name: Bart Frijns
Author-X-Name-First: Bart
Author-X-Name-Last: Frijns
Author-Name: Ivan Indriawan
Author-X-Name-First: Ivan
Author-X-Name-Last: Indriawan
Author-Name: Yiuman Tse
Author-X-Name-First: Yiuman
Author-X-Name-Last: Tse
Title: Pairs trading of Chinese and international commodities
Abstract: 
 We investigate the profitability of a pairs trading strategy using Chinese and international commodity futures contracts covering the period January 2004 to February 2018. We use a time-series approach where the commodity pairs share a similar underlying. An out-of-sample test is employed to infer the performance of these pairs, allowing us to determine the optimal open and close positions for the pairs trading strategy. Applying this strategy to a portfolio of commodities yields an excess return of 2.08% per annum and a Sharpe ratio of 0.79. For a portfolio of metal futures, this strategy yields 5.32% excess returns and a Sharpe ratio of 1.47, whereas for gold-only futures, this strategy yields 7.39% excess returns and 1.95 Sharpe ratio. This performance is superior to traditional strategies based on term structure, momentum, and value portfolios. Arbitrage opportunities in these commodity pairs remain even after accounting for transaction costs and are robust to data-snooping bias.
Journal: Applied Economics
Pages: 5203-5217
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761009
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761009
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5203-5217




Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: A CBA of corrective lenses, including the benefits for reducing the symptoms of dementia
Abstract: 
 We carried out a CBA of corrective lenses (CLs) that had direct benefits, and included indirect benefits working through a reduction in dementia symptoms. The benefits took the form of a reduction in mortality that was expressed in monetary terms by using the value of a statistical life (VSL) methodology. The indirect benefits consisted of CLs first lowering dementia symptoms and in this way reducing mortality. Estimation of the impact on mortality of CLs and dementia symptoms was carried out using a random effects Logit regression on a large national panel data set provided by the National Alzheimer’s Coordinating Centre. The effect of CLs on dementia symptoms was estimated by a fixed effects regression. The VSL figure came from the literature. The net-benefits overall were positive and large, and even positive just from the indirect dementia benefits alone.
Journal: Applied Economics
Pages: 5218-5229
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761533
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761533
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5218-5229




Template-Type: ReDIF-Article 1.0
Author-Name: Bakhtear Talukdar
Author-X-Name-First: Bakhtear
Author-X-Name-Last: Talukdar
Author-Name: A. M. Parhizgari
Author-X-Name-First: A. M.
Author-X-Name-Last: Parhizgari
Title: Market returns and risk factors for the emerging economies
Abstract: 
 This paper creates daily factors (much like Fama and French) and monthly aggregate idiosyncratic volatility measures for 15 emerging economies. Data deficiencies, including firm balance sheet data, are bypassed by constructing daily country factors through principal components. We focus on each country’s aggregate idiosyncratic volatility. We derive empirical measures for these volatilities and test them against prior known results. In addition, we examine the attributes of these measures by employing regime-switching, trend tests, and multiple structural breaks. An expository effort is also made to interpret the derived factors and examine their performance. Our findings indicate that the derived volatility series are robust and empirically valid in correctly detecting most of the exact timing of known volatility periods. The derived factors and volatility series will be posted online for free public access and are expected to be updated on a regular basis.
Journal: Applied Economics
Pages: 5230-5243
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761534
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761534
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5230-5243




Template-Type: ReDIF-Article 1.0
Author-Name: Madhusudan Karmakar
Author-X-Name-First: Madhusudan
Author-X-Name-Last: Karmakar
Author-Name: Udayan Sharma
Author-X-Name-First: Udayan
Author-X-Name-Last: Sharma
Title: Measuring quantile risk hedging effectiveness: a GO-GARCH-EVT-copula approach
Abstract: 
 In this study, we propose a new GO-GARCH-EVT-copula combined approach to estimate minimum quantile risk hedge ratios. We examine the hedging effectiveness of the proposed model in comparison with three other competing models. In doing so, we consider thirty-five pairs of daily spot and futures price series data from various stock, currency, and commodity markets across the world. The evidence suggests that the proposed combined approach performs best in estimating minimum quantile risk hedge ratios. The superior performance is likely due to the combined approach’s ability to appropriately capture the statistical features of the data.
Journal: Applied Economics
Pages: 5244-5262
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761535
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761535
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5244-5262




Template-Type: ReDIF-Article 1.0
Author-Name: Isabelle Cadoret
Author-X-Name-First: Isabelle
Author-X-Name-Last: Cadoret
Author-Name: Emma Galli
Author-X-Name-First: Emma
Author-X-Name-Last: Galli
Author-Name: Fabio Padovano
Author-X-Name-First: Fabio
Author-X-Name-Last: Padovano
Title: How do governments actually use environmental taxes?
Abstract: 
 This paper empirically examines how governments actually use environmental taxes, by looking to what extent their resort to this type of taxation is consistent with three alternative interpretations of environmental taxes proposed by the welfare economics theoretical literature: the strict and the broad Pigouvian and the double dividend hypotheses. We also extend our analysis to an alternative vision of politics, the Leviathan model, to verify how governments that are imperfectly accountable use environmental taxes. Each theory leads to alternative testable hypotheses, which we verify on a sample that minimizes the analysts’ discretionary evaluations, the EU-28 countries that committed themselves to reducing the greenhouse gas emissions by 2020. The estimates lend support to the strict Pigouvian hypothesis and, to a lesser extent, to a version of the double dividend hypothesis, where personal income taxes are ‘recycled’ by environmental ones. The other interpretations do not appear consistent with the data.
Journal: Applied Economics
Pages: 5263-5281
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761536
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761536
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5263-5281




Template-Type: ReDIF-Article 1.0
Author-Name: Michael T. French
Author-X-Name-First: Michael T.
Author-X-Name-Last: French
Author-Name: Ioana Popovici
Author-X-Name-First: Ioana
Author-X-Name-Last: Popovici
Author-Name: Andrew R. Timming
Author-X-Name-First: Andrew R.
Author-X-Name-Last: Timming
Title: Analysing the effect of commuting time on earnings among young adults
Abstract: 
 A few recent studies find a positive relationship between workplace income and commuting distance among the general population. However, young adults, with less advanced labour market skills, might be more likely to accept longer commutes even if they are not compensated with higher earnings in the short-run. We examine the relationship between commuting time and earnings in a sample of young adults from the National Longitudinal Study of Adolescent to Adult Health. We employ various statistical approaches to disentangle the effects of commuting time on earnings while controlling for numerous socio-demographic factors, occupation, irregular work schedules or part-time work, transportation mode, and other explanatory variables. Our results indicate that 10 additional minutes of one-way commuting time is associated with a 2.9% (2.8%) increase in annual income for young adult men (women). These findings have implications for employers, young employees, workplace advocates, and policymakers as commuting is a prominent component of work–life balance for most individuals.
Journal: Applied Economics
Pages: 5282-5297
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761537
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761537
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5282-5297




Template-Type: ReDIF-Article 1.0
Author-Name: Liang Wu
Author-X-Name-First: Liang
Author-X-Name-Last: Wu
Author-Name: Shujuan Chen
Author-X-Name-First: Shujuan
Author-X-Name-Last: Chen
Title: Long memory and efficiency of Bitcoin under heavy tails
Abstract: 
 The long memory is usually defined via auto-covariances which further connect with Hurst exponent. The heavy tails in Bitcoin returns can cause infinite auto-covariances which make the analysis of long memory and market efficiency in Bitcoin based on estimation of Hurst exponent inappropriate. Few literatures focus on this problem. We provide two approaches based on shuffling method and rank-ordered technique to this problem, and further combine them to analyse the time-varying efficiency and long memory in Bitcoin using sliding window. Results show that the inefficiency and long memory exist in Bitcoin before 2014 and after mid-2017. Especially, the latest data reveal a recent new change that the Bitcoin market has become inefficient and exhibited long memory behaviour since mid-2017, but is turning back to efficiency recently. This change may be due to the frequent key events of Bitcoin in 2017 and 2018, which can break the weak efficiency of Bitcoin. The heavy negative tails with $$\alpha \lt 2$$α<2 before September 2016 validate the necessity of our analysis under heavy tails. Besides, the change trend and exact sub-periods of efficiency and long memory are first obtained via empirical mode decomposition of Hurst exponent estimates.
Journal: Applied Economics
Pages: 5298-5309
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761942
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761942
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5298-5309




Template-Type: ReDIF-Article 1.0
Author-Name: Waqas Hanif
Author-X-Name-First: Waqas
Author-X-Name-Last: Hanif
Author-Name: Jose Arreola-Hernandez
Author-X-Name-First: Jose
Author-X-Name-Last: Arreola-Hernandez
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Author-Name: Thi Hong Van Hoang
Author-X-Name-First: Thi Hong Van
Author-X-Name-Last: Hoang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Regional and copula estimation effects on EU and US energy equity portfolios
Abstract: 
 The aim of this paper is to investigate the regional interdependence structure of energy equities in the US and in the EU. Based on weekly stock prices of 28 big energy firms in the two regions from 2008 to 2019, we compare the efficiency of using bivariate or multivariate copulas to describe the dependence structure of energy equities. Furthermore, we investigate the impact of the choice between these two methods on the performance of energy equity portfolios. Our empirical results show that multivariate copulas, such as C-Vine, allow to better describe the dependence structure of energy equities. We also find that there is a stronger and more complex dependence structure among EU energy equities than among US energy equities. Our scenario analysis also shows that the dependence structure is stronger during the GFC while being weaker during the ESDC. More importantly, the correlation matrix obtained from the multivariate copula method allows to obtain optimal mean-CVaR portfolios with a higher performance than that from the bivariate copula method. More importantly, optimal portfolios constituted with multivariate copulas allow to reduce the portfolio’s sensitivity to oil prices.
Journal: Applied Economics
Pages: 5311-5342
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1763244
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1763244
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5311-5342




Template-Type: ReDIF-Article 1.0
Author-Name: Simon Alfano
Author-X-Name-First: Simon
Author-X-Name-Last: Alfano
Author-Name: Stefan Feuerriegel
Author-X-Name-First: Stefan
Author-X-Name-Last: Feuerriegel
Author-Name: Dirk Neumann
Author-X-Name-First: Dirk
Author-X-Name-Last: Neumann
Title: Language sentiment in fundamental and noise trading: evidence from crude oil
Abstract: 
 Recent research has found the language sentiment in financial news to be a substantial driver of prices in financial markets, though there are two diametrically opposed interpretations for this: either markets perceive news sentiment as fundamental information (thus leading to changes in the valuation of assets) or news sentiment conveys a noise signal (thus contributing to the stochastic component of prices). The opposite roles are resolved in the context of crude oil prices by decomposing price movements into two components referring to fundamental and noise trading. Contrary to theoretical arguments in prior literature, we find empirical results supporting both interpretations.
Journal: Applied Economics
Pages: 5343-5363
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1763245
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1763245
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5343-5363




Template-Type: ReDIF-Article 1.0
Author-Name: Jos L.T. Blank
Author-X-Name-First: Jos L.T.
Author-X-Name-Last: Blank
Title: The use of the scaling property in a frontier analysis of a system of equations
Abstract: 
 This article presents a one-stage efficiency frontier analysis based on the scaling property. This type of analysis is a not very often applied in empirical work in spite of its nice features. Due to the scaling property the influence of exogenous (managerial) variables on efficiency can be modelled and estimated in one stage. It also opens the possibility of estimating a system of equations, consisting of a cost function and the corresponding cost share equations. The model is applied to a unique data set of Dutch secondary education school boards in the period 2007–10, not only consisting of regular data on cost, inputs and outputs, but also of specific data on operational management. The model provides reliable and plausible estimates for the cost efficiency, scale elasticity, and technical change. Average cost efficiency is about 96%. Economies of scale prevail for school boards with size less than 0.8 times average size, whereas annual productivity growth is 2.2% on average.
Journal: Applied Economics
Pages: 5364-5374
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1763246
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1763246
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5364-5374




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoqi Huang
Author-X-Name-First: Xiaoqi
Author-X-Name-Last: Huang
Author-Name: Wei Liu
Author-X-Name-First: Wei
Author-X-Name-Last: Liu
Author-Name: Yuzhao Wu
Author-X-Name-First: Yuzhao
Author-X-Name-Last: Wu
Title: Currency internationalization and valuation effects: based on the threshold model
Abstract: 
 Based on the three functions of currency internationalization, including exchange medium, pricing currency and foreign reserve, this paper explores how the degree of currency internationalization affects the impact of the exchange rate and the asset price on valuation effects. Using samples of 161 countries or regions from 2001 to 2016 and the threshold regression method, we find that, firstly, there is a threshold effect of the exchange rate on valuation effects due to currency internationalization. The higher the comprehensive level of currency internationalization is, the greater the positive impact of the exchange rate on valuation effects will be. Secondly, the threshold effect of the asset price on valuation effects due to currency internationalization is not significant because of the high stickiness of asset price. Besides, compared with developed countries, currency internationalization is more important to increase valuation effects through exchange rate channel and asset price channel in developing countries or regions. Finally, there are some differences in the three types of currency internationalization functions. The promotion of exchange medium function will lead to a greater positive impact of the exchange rate on valuation effects, as well as pricing currency function. However, the foreign reserve function has no such effect.
Journal: Applied Economics
Pages: 5375-5398
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1763907
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1763907
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5375-5398




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Jebaraj Benjamin
Author-X-Name-First: Samuel Jebaraj
Author-X-Name-Last: Benjamin
Author-Name: Dereje Getachew Regasa
Author-X-Name-First: Dereje Getachew
Author-X-Name-Last: Regasa
Author-Name: Nirosha Hewa Wellalage
Author-X-Name-First: Nirosha Hewa
Author-X-Name-Last: Wellalage
Author-Name: M Srikamalaladevi M Marathamuthu
Author-X-Name-First: M Srikamalaladevi
Author-X-Name-Last: M Marathamuthu
Title: Waste disclosure and corporate cash holdings
Abstract: 
 In this paper, we address an important and emerging question: Can firms’ voluntary waste disclosure affect corporate cash holdings? Using a sample of S&P 500 firms, we find strong evidence for a positive relationship between waste disclosure and the cash holding policy of firms. Furthermore, we find that waste disclosure significantly increases cash holdings only for firms with strong corporate governance quality. We also find that the significant relationship between waste disclosure and cash holdings remains unchanged only for firms that operate in environmentally sensitive industries. Our paper provides novel evidence on the role of voluntary waste disclosure as an environmental dimension that influences the cash policy of firms and highlights the little-known issue of waste disclosure as a significant research topic.
Journal: Applied Economics
Pages: 5399-5412
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764480
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764480
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5399-5412




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Author-Name: Esmeralda P. Muñiz
Author-X-Name-First: Esmeralda P.
Author-X-Name-Last: Muñiz
Title: Credit union loan rate determinants in the United States
Abstract: 
 Credit union participation in the consumer lending market continues to grow as an increasing number of consumers and small businesses become members and open accounts. This study investigates the determinants of credit union loan rates during a period of economic expansion in the United States using fourth quarter 2015 data for 5,942 credit unions. Five different interest rate categories are analysed using nine potential loan rate determinants. Results indicate that loan rates tend to be lower as credit union size increases, while high ratios for net charge-offs and operating costs cause interest rates to increase. Opposite to what is expected, loan rates are positively correlated with regional unemployment rates. A possible explanation for this outcome is that weak labour markets are associated with elevated loan delinquency rates and, therefore, greater default risks resulting in higher interest rates.
Journal: Applied Economics
Pages: 5413-5425
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764481
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764481
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5413-5425




Template-Type: ReDIF-Article 1.0
Author-Name: Debdatta Pal
Author-X-Name-First: Debdatta
Author-X-Name-Last: Pal
Author-Name: Subrata Kumar Mitra
Author-X-Name-First: Subrata Kumar
Author-X-Name-Last: Mitra
Title: Time-frequency dynamics of return spillover from crude oil to agricultural commodities
Abstract: 
 We explore return spillover from crude oil to ethanol, corn, soybean and wheat on daily data during 17 May 2005–27 June 2018. This study is unique in capturing the time-frequency dynamics of return spillover. We use the frequency-dependent spillover measure that jointly captures information from time and frequency domain. We also identify two endogenous break dates that segregate the study period in three sub-periods. Our results indicate that return spillover from crude oil to ethanol, major feed stocks (i.e. corn and soybean) and food crop (i.e. wheat) is pronounced only in lower frequency band or long-term (more than 1 month). We find that return spillover is stronger only during 2005–2010, i.e. the period of energy and food crisis.
Journal: Applied Economics
Pages: 5426-5445
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764482
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764482
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5426-5445




Template-Type: ReDIF-Article 1.0
Author-Name: María Candelaria Barrios González
Author-X-Name-First: María Candelaria Barrios
Author-X-Name-Last: González
Author-Name: Heather L. R. Tierney
Author-X-Name-First: Heather L. R.
Author-X-Name-Last: Tierney
Author-Name: Zafar Nazarov
Author-X-Name-First: Zafar
Author-X-Name-Last: Nazarov
Author-Name: Myeong Hwan Kim
Author-X-Name-First: Myeong Hwan
Author-X-Name-Last: Kim
Title: Divided: the two Americas-examining club convergence in the U.S.
Abstract: 
 This paper finds club convergence within the 50 U.S. states using the Phillips and Sul regression-based convergence test with per capita real state domestic product from 1997 to 2017. Two clubs with diverging transition paths are found. Clubs 1 and 2 mimics the divide that is seen in the flow of funds from the federal government to the states. Hence, the Phillips and Sul logt test is telling the tale of there being two Americas if all factors remain the same, but this need not be the case with the proper policy prescription.
Journal: Applied Economics
Pages: 5783-5796
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776832
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776832
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5783-5796




Template-Type: ReDIF-Article 1.0
Author-Name: Arne Feddersen
Author-X-Name-First: Arne
Author-X-Name-Last: Feddersen
Author-Name: Brad R. Humphreys
Author-X-Name-First: Brad R.
Author-X-Name-Last: Humphreys
Author-Name: Brian P. Soebbing
Author-X-Name-First: Brian P.
Author-X-Name-Last: Soebbing
Title: Casual bettors and sentiment bias in NBA and NFL betting
Abstract: 
 Sentiment bias, defined as investment decisions made for reasons unrelated to fundamentals and related to popularity, represents a common research topic in finance and economics. Empirical research on sentiment bias frequently uses data from sports betting markets. While research generally finds evidence of sentiment bias, in particular, due to team popularity, the prevalence of this bias among fans and bettors in many sports remains unclear and identification of markets with relatively larger numbers of bettors with sentiment bias poses empirical challenges. We analyse outcomes in betting markets for games played in two North American team sports leagues, the National Basketball Association (NBA) and National Football League (NFL) from the 2012–13 to 2016–17 seasons and investigate how game timing, in terms of games played on weekdays and weekends, may affect the presence of bettors with popularity-based sentiment bias. Probit model estimates explaining the probability that a bet on a team wins indicate patterns consistent with the presence of bettors with sentiment bias in the markets for betting on games in the NFL but not in the NBA, and the presence of more such bettors for NFL games played on weekends.
Journal: Applied Economics
Pages: 5797-5806
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776833
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776833
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5797-5806




Template-Type: ReDIF-Article 1.0
Author-Name: Ficawoyi Donou-Adonsou
Author-X-Name-First: Ficawoyi
Author-X-Name-Last: Donou-Adonsou
Author-Name: Gyan Pradhan
Author-X-Name-First: Gyan
Author-X-Name-Last: Pradhan
Author-Name: Hem C. Basnet
Author-X-Name-First: Hem C.
Author-X-Name-Last: Basnet
Title: Remittance inflows and financial development: evidence from the top recipient countries in Sub-Saharan Africa
Abstract: 
 This paper utilizes a panel cointegration approach to investigate the relationship between remittances and financial development in the top remittance recipient countries in Sub-Saharan Africa. Our results point to a significant and positive long-run relationship. More specifically, the pooled-mean group estimates indicate that a one-percentage point increase in remittance inflows promotes financial development by more than one percentage point. In addition, the results support the existence of bidirectional causality between remittances and financial development in the long-run. We also find some evidence that remittance pricing has a negative impact on the long-run relationship between remittances and financial development. While the results suggest that remittance inflows promote financial development, migrant workers may be timing the foreign exchange market to remit.
Journal: Applied Economics
Pages: 5807-5820
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776834
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776834
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5807-5820




Template-Type: ReDIF-Article 1.0
Author-Name: Matteo M. Marini
Author-X-Name-First: Matteo M.
Author-X-Name-Last: Marini
Author-Name: Aurora García-Gallego
Author-X-Name-First: Aurora
Author-X-Name-Last: García-Gallego
Author-Name: Luca Corazzini
Author-X-Name-First: Luca
Author-X-Name-Last: Corazzini
Title: Communication in a threshold public goods game under ambiguity
Abstract: 
 This paper offers evidence on the impact of communication on the provision of public goods whose quality is uncertain, such as investment in prevention or fundraising in favour of non-governmental organizations (NGO). We run a laboratory experiment with two treatments, where the control variable is pre-play communication via unrestricted text chat. A binary threshold public goods game with four-person groups, threshold of three contributors and provision mechanism with elements of ambiguity is at the core of the design. A private signal linked to the real value of the public good supports the contribution decision. We find that unexpected low-valued public goods can undermine future willingness to contribute, although the benefits of communication still prevail in the form of higher public good provision. We also detect unprecedented inefficiency coming from overcontribution, given that subjects tend to neglect the free-rider problem. Chat analysis reveals that players favour the minimization of ambiguity over the maximization of the group earnings, so that we finally speculate that under uncertainty satisficing is more salient than optimizing.
Journal: Applied Economics
Pages: 5821-5842
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776835
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776835
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5821-5842




Template-Type: ReDIF-Article 1.0
Author-Name: Arnar Buason
Author-X-Name-First: Arnar
Author-X-Name-Last: Buason
Author-Name: Dadi Kristofersson
Author-X-Name-First: Dadi
Author-X-Name-Last: Kristofersson
Author-Name: Kyrre Rickertsen
Author-X-Name-First: Kyrre
Author-X-Name-Last: Rickertsen
Title: Demand systems and frequency of purchase models
Abstract: 
 Understanding the frequencies of purchase and the average purchased quantities is important for marketing strategies such as the loss-leader pricing strategy. We develop a framework for analysing a demand system incorporating both these dimensions and show how the results can be used to formulate profitable marketing strategies for large food retailers. In our microeconomic model, total purchases are determined by two demand systems; one for frequencies and one for average quantities purchased conditional on positive purchase frequencies. An econometric model was developed to estimate the two systems by a Bayesian estimation method, which allows for an unrestricted covariance structure within each system. We estimated the systems using French scanner data for purchases of fresh salmon, fresh white fish and other fresh fish. The own-price elasticities for total quantities purchased were very similar in magnitude, whereas the own-price elasticities for purchase frequencies and average quantities purchased varied more. This variation can be used to determine good loss-leader products for a large retailer. In our case, it involves lowering the price of salmon and increasing the price of white fish.
Journal: Applied Economics
Pages: 5843-5858
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776836
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776836
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5843-5858




Template-Type: ReDIF-Article 1.0
Author-Name: HaiYue Liu
Author-X-Name-First: HaiYue
Author-X-Name-Last: Liu
Author-Name: Yile Wang
Author-X-Name-First: Yile
Author-X-Name-Last: Wang
Author-Name: Dongmei He
Author-X-Name-First: Dongmei
Author-X-Name-Last: He
Author-Name: Cangyu Wang
Author-X-Name-First: Cangyu
Author-X-Name-Last: Wang
Title: Short term response of Chinese stock markets to the outbreak of COVID-19
Abstract: 
 China’s economy and the Asian stock markets have been severely impacted by the COVID-19 outbreak. This article used an event study method to calculate the abnormal returns (AR) in the 10 trading days following the outbreak, from which it was found that both the Chinese and Asian stock markets had significantly declined, with the cumulative abnormal returns (CAR) remaining negative in all the examined event window periods. This article also analysed the different industry index responses to the epidemic, from which it was found that the pharmaceutical manufacturing, software and IT services both had positive CAR, while transportation, lodging and catering had negative CAR during the event window. These results reflected the investors’ expectations for the different industries and the economy as a whole under the outbreak of the contagious coronavirus.
Journal: Applied Economics
Pages: 5859-5872
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776837
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776837
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5859-5872




Template-Type: ReDIF-Article 1.0
Author-Name: Tanweer Akram
Author-X-Name-First: Tanweer
Author-X-Name-Last: Akram
Author-Name: Huiqing Li
Author-X-Name-First: Huiqing
Author-X-Name-Last: Li
Title: JGBs’ chronically low nominal yields: a VEC approach
Abstract: 
 Low short-term interest rates, induced by the Bank of Japan’s (BoJ) accommodative monetary policy, is mainly responsible for keeping long-term Japanese government bonds’ (JGBs) nominal yields exceptionally low for a protracted period. Elevated government debt and deficit ratios do not exert upward pressure on JGBs’ nominal yields. This paper provides an empirical investigation of chronically low nominal yields of JGBs from a Keynesian perspective. It deploys a Vector Error Correction (VEC) approach to model long-term government bond yields.
Journal: Applied Economics
Pages: 5873-5893
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776838
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776838
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5873-5893




Template-Type: ReDIF-Article 1.0
Author-Name: Aaron Grau
Author-X-Name-First: Aaron
Author-X-Name-Last: Grau
Author-Name: Martin Odening
Author-X-Name-First: Martin
Author-X-Name-Last: Odening
Author-Name: Matthias Ritter
Author-X-Name-First: Matthias
Author-X-Name-Last: Ritter
Title: Land price diffusion across borders – the case of Germany
Abstract: 
 Land market regulations are often justified by the assumption that activities of foreign and non-agricultural investors drive up prices in domestic land markets. However, empirical knowledge about the dynamics of agricultural land prices across borders is sparse. Using the German reunification as a natural experiment, we study the effect of the former inner German border on the dynamics of agricultural land prices in East and West Germany. We apply a land price diffusion model with an error correction specification to analyse spatial agricultural land markets. A novel feature of our model is its ability to distinguish price diffusion within states and across state borders. We provide evidence for a persistent border effect given that the fraction of spatially integrated counties is larger within states than across the former border. Moreover, we observe non-significant error correction terms for many counties along the former border. From a policy perspective, it is striking to realize that even 25 years after German reunification, pronounced land price differences persist. It is quite likely that price diffusion through existing borders within the EU would take even more time given language barriers, different institutional frameworks, and information asymmetries between domestic and foreign market participants.
Journal: Applied Economics
Pages: 5446-5463
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2019.1673299
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1673299
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5446-5463




Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Aldieri
Author-X-Name-First: Luigi
Author-X-Name-Last: Aldieri
Author-Name: Cristian Barra
Author-X-Name-First: Cristian
Author-X-Name-Last: Barra
Author-Name: Nazzareno Ruggiero
Author-X-Name-First: Nazzareno
Author-X-Name-Last: Ruggiero
Author-Name: Concetto Paolo Vinci
Author-X-Name-First: Concetto Paolo
Author-X-Name-Last: Vinci
Title: Innovative performance effects of institutional quality: an empirical investigation from the Triad
Abstract: 
 Using data for a set of 823 R&D-intense manufacturing firms within the Triad and the Quality of Government (QoG) dataset over the 2002–2010 period, this article investigates the effects of institutional quality upon firms’ inefficiency, through the application of a Stochastic Frontier Approach (SFA). Empirical evidence, which is robust to alternative specifications of the technology employed and different lag structures in R&D activities, reveals that improvements in the quality of institutions significantly reduce firms’ inefficiency and suggests that, among the set of relevant institutional factors considered, a pre-eminent role is found for the rule of law.
Journal: Applied Economics
Pages: 5464-5476
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764483
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764483
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5464-5476




Template-Type: ReDIF-Article 1.0
Author-Name: Kaili Peng
Author-X-Name-First: Kaili
Author-X-Name-Last: Peng
Author-Name: Chen Yang
Author-X-Name-First: Chen
Author-X-Name-Last: Yang
Author-Name: Yao Chen
Author-X-Name-First: Yao
Author-X-Name-Last: Chen
Title: Land transfer in rural China: incentives, influencing factors and income effects
Abstract: 
 Land transfer incentives and their effect on farmers’ income in developing countries have been widely examined in the literate, but little is known about the driving mechanism of rural household income effect during land transfer. To fill in this gap, this paper explains the incentives of land transfer, analyses the influencing factors of farmers’ decision on land transfer, then measures the income effects of land transfer and identifies the main sources of income effects, utilizing open-access data collected through the China Family Panel Studies. The empirical results show that land flow out or in is beneficial to raise farmers’ income, indicating that the income effects have a positive feedback to farmers’ decision on land transfer. Further analyses reveal that land flow-out farmers and land flow-in farmers have different main sources of income growth. Our finding suggest that optimizing the incentive role of China’s existing rural land property system can help orderly flow of rural land resources, which subsequently increases rural household income.
Journal: Applied Economics
Pages: 5477-5490
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764484
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764484
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5477-5490




Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Kai Tim Wong
Author-X-Name-First: Douglas Kai Tim
Author-X-Name-Last: Wong
Title: A re-examination of the impacts of macroeconomic and financial shocks on real exchange rate fluctuation: evidence from G7 and Asian countries
Abstract: 
 This paper aims to investigate the sources of real exchange rate fluctuation by utilizing sign restrictions in structural vector autoregressive (SVAR) method. Under an agnostic identification scheme, the empirical results show that the delayed overshooting puzzle still exists in response to monetary shock even if price puzzle is ruled out by construction. In contrast, all countries experience a significant initial real depreciation, and then gradually appreciate in response to currency risk premium (CRP) shock. This finding is consistent with Dornbusch’s overshooting model. In addition, I examine the importance of investors’ expectations in determining the short-term variations in the real exchange rate. The results indicate that the CRP and expectation shocks obviously outperformed the demand, supply and monetary shocks in terms of explaining the real exchange rate fluctuation.
Journal: Applied Economics
Pages: 5491-5515
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1765962
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765962
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5491-5515




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Cameron
Author-X-Name-First: Samuel
Author-X-Name-Last: Cameron
Author-Name: Hendrik Sonnabend
Author-X-Name-First: Hendrik
Author-X-Name-Last: Sonnabend
Title: Pricing the Groove: hedonic equation estimates for rare vinyl records
Abstract: 
 This contribution adds to the economic literature on the market value of rarity in markets for cultural collectible goods by studying the price of rare audio recordings (chiefly vinyl) sold on the online marketplace Discogs. Community-based variables serve as proxies for (inverse) rarity and (potential) demand. Results show that the elasticity of price with respect to our measure of inverse rarity (demand) ranges between −0.120 and −0.140 (0.150 and 0.160). In addition, effects of hedonic characteristics such as the popularity or collectibility of an artist can be identified. Finally, the study provides evidence for premia for rarity at the top end of the distribution of prices.
Journal: Applied Economics
Pages: 5516-5530
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1765963
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765963
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5516-5530




Template-Type: ReDIF-Article 1.0
Author-Name: Corinna Hentschker
Author-X-Name-First: Corinna
Author-X-Name-Last: Hentschker
Author-Name: Ansgar Wübker
Author-X-Name-First: Ansgar
Author-X-Name-Last: Wübker
Title: Quasi-experimental evidence on the effectiveness of heart attack treatment in Germany
Abstract: 
 Medical technological progress has been shown to be the main driver of health care costs. A key policy question is whether new treatment options are worth the additional costs. In this analysis we assess the causal effect of percutaneous transluminal coronary angioplasty (PTCA), a major new heart attack treatment, on mortality. We use a full sample of administrative hospital data from Germany for the years 2005 to 2007. To account for non-random treatment assignment of PTCA, instrumental variable approaches are implemented that aim to randomize patients into getting PTCA independent of heart attack severity. Instruments include differential distances to PTCA hospitals and regional PTCA rates. Our results suggest a 4.5 absolute percentage point mortality reduction for patients who have access to PTCA compared to patients receiving only conservative treatment. We relate mortality reduction to the additional costs for this treatment and conclude that PTCA treatment is cost-effective in lowering mortality for AMI patients at reasonable cost-effectiveness thresholds.
Journal: Applied Economics
Pages: 5531-5545
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1765964
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765964
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5531-5545




Template-Type: ReDIF-Article 1.0
Author-Name: María José Quinteros
Author-X-Name-First: María José
Author-X-Name-Last: Quinteros
Author-Name: Rafael Sánchez
Author-X-Name-First: Rafael
Author-X-Name-Last: Sánchez
Author-Name: Mauricio G. Villena
Author-X-Name-First: Mauricio G.
Author-X-Name-Last: Villena
Title: How do business schools compete in Latin America? Stability and best predictors of success for the AmericaEconomia MBA Ranking
Abstract: 
 The main aim of this paper is to present a longitudinal analysis of the AmericaEconomia MBA Ranking for the period 2005–2014. AmericaEconomia was the first international ranking specifically devoted to Latin American business schools, and with data gathered from this publication, we build a panel to study its stability and the main determinants of a school‘s position in such ranking. We examine the reliability of the ranking, that is whether changes in the relative positions are not just due to white noise, and compare its stability with those of the US and other global rankings. We also empirically determine which are the key quality variables this ranking is promoting for Latin America Business Schools and the evolution of these business schools during the period under study. Unlike previous literature that usually considers dynamic Tobit models for ranking analysis, we put forwards an alternative methodology based on a system GMM estimator with first-differenced instruments. We argue that dynamic Tobit models are appropriate only if you have truncated data about the ranking variable but full data on Business Schools variables.
Journal: Applied Economics
Pages: 5546-5563
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1765965
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765965
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5546-5563




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Nordström
Author-X-Name-First: Martin
Author-X-Name-Last: Nordström
Title: Consumption and the interest rate – A changing dynamic?
Abstract: 
 This article addresses the question of whether the relation between the short interest rate and consumption growth has been stable over the financial crisis and the ensuing period of unconventional monetary policy. The question is addressed by assessing models using constant or drifting parameters as well as models with or without stochastic volatility in a Bayesian VAR framework, based on data from the USA and Sweden. According to the results, the response of interest rates to shocks in consumption growth has decreased for both countries, which could be because the central banks were constrained by the zero lower bound. When shadow rates are used to study the impact of unconventional monetary policy the results suggest that the Federal Reserve successfully maintained an active monetary policy in spite of the zero lower bound. The responsiveness of the Riksbank, on the other hand, decreases in face of the zero lower bound even when unconventional monetary policy is considered. The response of consumption growth to short interest rates is best modelled as constant over the period. Finally, results support the inclusion of stochastic volatility throughout estimations.
Journal: Applied Economics
Pages: 5564-5578
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1765966
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765966
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5564-5578




Template-Type: ReDIF-Article 1.0
Author-Name: Fumin Deng
Author-X-Name-First: Fumin
Author-X-Name-Last: Deng
Author-Name: Yaqi Wang
Author-X-Name-First: Yaqi
Author-X-Name-Last: Wang
Author-Name: Zhi Li
Author-X-Name-First: Zhi
Author-X-Name-Last: Li
Author-Name: Xuedong Liang
Author-X-Name-First: Xuedong
Author-X-Name-Last: Liang
Title: China’s Technology Spillover Effects in the Countries along the Belt and Road — Evidence from 49 BRI Countries
Abstract: 
 China ’s aims for the Belt and Road Initiative (BRI) are to improve the trade and investment conditions along the BRI routes and develop a value-sharing platform with countries along the route to promote mutual benefits. Studies have found it’s possible that international trade and investment could lead to technological progress in the host countries. However, over the past 7 years, the effects of the BRI have not been fully evaluated and therefore, there is no clear evidence as to whether China, as an emerging economy, has had the ability to promote technology development in the BRI countries, or as to whether the BRI countries have the ability to effectively absorb imported technology. Therefore, to clarify the gains of the BRI and provide future guarantees for political mutual trust and deepening economic integration, this paper examined the technological progress in 49 BRI countries from 2003 to 2017. It was found that China had dual-channel technology spillover effects from trade and investment with the evaluated BRI countries; with the introduction of the BRI, the trade channel technology spillover effects had an increasing trend and the investment impacts were more persistent.
Journal: Applied Economics
Pages: 5579-5594
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1767282
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1767282
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5579-5594




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Gill
Author-X-Name-First: Andrew
Author-X-Name-Last: Gill
Author-Name: Kristin J. Kleinjans
Author-X-Name-First: Kristin J.
Author-X-Name-Last: Kleinjans
Title: The effect of the fall of the Berlin Wall on children’s noncognitive skills
Abstract: 
 The noncognitive skill of conscientiousness has been linked to favourable labour market and health outcomes. But how is conscientiousness affected by events that happen in childhood? We investigate the effects of negative parental selection and economic and social upheaval on conscientiousness in adulthood using data from the German Socioeconomic Panel (SOEP). Our identification strategy exploits the steep drop in fertility that occurred in the former East Germany following the fall of the Berlin Wall and the collapse of the socialist regime. Using an event study analysis and a difference-in-differences estimator with the former West Germany as a control group, we find that women conceived in East Germany in the three-year period following the fall the Berlin Wall are less conscientious as adults than women born after this period and before the fall of the Berlin Wall. We interpret our findings as evidence of a detrimental effect of negative parental selection on women’s conscientiousness. In contrast, we find no effects of negative parental selection on the conscientiousness of men.
Journal: Applied Economics
Pages: 5595-5612
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770189
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770189
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5595-5612




Template-Type: ReDIF-Article 1.0
Author-Name: Xian Liu
Author-X-Name-First: Xian
Author-X-Name-Last: Liu
Author-Name: Barrett E. Kirwan
Author-X-Name-First: Barrett E.
Author-X-Name-Last: Kirwan
Title: Political influence in the distribution of agricultural disaster payments
Abstract: 
 This paper examines the impact of committee membership and electoral votes on the distribution of ad hoc agricultural disaster payments across U.S. counties. Our results show that both House oversight committees and political parties determine the allocation of payments. We find a positive and significant committee membership effect for both the Agriculture committee and the Appropriations committee, although the effect of the latter is due mainly to its majority members and the Agriculture subcommittee. Our results also show that parties target benefits to their core constituents, supporting the core voter models. Areas where the majority party have higher levels of electoral support tend to receive larger shares of payments.
Journal: Applied Economics
Pages: 5613-5628
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770190
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770190
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5613-5628




Template-Type: ReDIF-Article 1.0
Author-Name: Rodney Fort
Author-X-Name-First: Rodney
Author-X-Name-Last: Fort
Author-Name: Young H. Lee
Author-X-Name-First: Young H.
Author-X-Name-Last: Lee
Title: Transition to an unbalanced Sports League schedule: adding the analysis of outcome uncertainty
Abstract: 
 We extend the literature on unbiased estimators of sports league outcomes to include outcome uncertainty. While competitive balance and outcome uncertainty are related, generally, they are not the same thing. We show that an extant unbiased estimator of competitive balance, and our new unbiased estimator of outcome uncertainty, bear this out. The impacts on both competitive balance and outcome uncertainty, moving from a balanced to an unbalanced schedule, are demonstrated via numerical analysis. Finally, the unbiased estimators are employed to test the implications of our numerical analysis on the move by the Scottish Professional Football League to an unbalanced schedule. Results conform to our simulations.
Journal: Applied Economics
Pages: 5629-5638
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770191
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770191
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5629-5638




Template-Type: ReDIF-Article 1.0
Author-Name: Zhaobin Fan
Author-X-Name-First: Zhaobin
Author-X-Name-Last: Fan
Author-Name: Yongli Cheng
Author-X-Name-First: Yongli
Author-X-Name-Last: Cheng
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Title: Macroeconomic uncertainty, cultural traits and entrepreneurship
Abstract: 
 The relationship between macroeconomic uncertainty and entrepreneurial activities has been the subject of intense debate among researchers. However, existing empirical studies report mixed findings. By examining the mediating role of cultural traits, we attempt to reconcile the conflicting results concerning the direction of the relationship between macroeconomic uncertainty and entrepreneurial activities. Specifically, we argue that the effect of macroeconomic uncertainty on entrepreneurial activities varies across the cultural trait of uncertainty avoidance. In countries where the prevailing culture is overwhelmingly characterized by low uncertainty avoidance, macroeconomic uncertainty is positively associated with entrepreneurial activities. By contrast, in countries where the prevailing culture is overwhelmingly characterized by high uncertainty avoidance, macroeconomic uncertainty is negatively related to entrepreneurial activities. Using data on 36 countries over the 2006–2016 period and employing the negative binomial regression technique, we find empirical support for our hypotheses. A series of robustness tests confirm the reliability of our empirical results.
Journal: Applied Economics
Pages: 5639-5652
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770192
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770192
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5639-5652




Template-Type: ReDIF-Article 1.0
Author-Name: Suyun Chen
Author-X-Name-First: Suyun
Author-X-Name-Last: Chen
Author-Name: Yiping Wu
Author-X-Name-First: Yiping
Author-X-Name-Last: Wu
Author-Name: Xinyi Shi
Author-X-Name-First: Xinyi
Author-X-Name-Last: Shi
Author-Name: Hengyun Ma
Author-X-Name-First: Hengyun
Author-X-Name-Last: Ma
Author-Name: Ruifeng Liu
Author-X-Name-First: Ruifeng
Author-X-Name-Last: Liu
Title: Why do many a-share listed companies eagerly disclose food safety information in China?—from the perspective of financing constraints
Abstract: 
 Recently, many listed food companies have started to eagerly disclose their food safety information; the question is, why? This study empirically tests the impacts of food safety information disclosure (FSID) on corporate financing constraints using a panel dataset. The results show that FSID is negatively correlated with equity financing constraint, while its degree is negatively correlated with debt financing constraint. FSID has a larger influence on the financing constraints of state-owned enterprises. Therefore, the standardized FSID is conducive to establishing a mechanism connecting an enterprise with government supervision, and to forming a bottom-up information transmission path in food safety production.
Journal: Applied Economics
Pages: 5653-5666
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770193
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770193
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5653-5666




Template-Type: ReDIF-Article 1.0
Author-Name: Geng Peng
Author-X-Name-First: Geng
Author-X-Name-Last: Peng
Author-Name: Xiaodan Zhang
Author-X-Name-First: Xiaodan
Author-X-Name-Last: Zhang
Author-Name: Fang Liu
Author-X-Name-First: Fang
Author-X-Name-Last: Liu
Author-Name: Wenyi Lu
Author-X-Name-First: Wenyi
Author-X-Name-Last: Lu
Author-Name: Yongxing Wang
Author-X-Name-First: Yongxing
Author-X-Name-Last: Wang
Author-Name: Qiang Yin
Author-X-Name-First: Qiang
Author-X-Name-Last: Yin
Title: On the relationship between financial literacy and choice behaviours under different risk elicitation methods in surveys
Abstract: 
 A few pieces of literature based primarily on experiments have proved that the risk elicitation instrument can affect the measurement of subject’s risk preferences. Using the China Household Finance Survey data, we focus on the risk choice behaviours of respondents when they choose between two different elicitation methods that have different complexities and a different number of options, respectively. Specifically, one is simpler but with more options, and another is more complex but with fewer options. Moreover, we further discuss the impact of two methods on the relationship between financial literacy and risk attitude. The theoretical and empirical studies indicate that the respondents will be more risk-loving in the elicitation method with simpler and more options because of computation avoiding and noisy behaviours. Also, this paper finds that financial literacy has a positive relation with risk preferences, and low-literacy respondents have more irrational drift behaviours of risk choice. Our results suggest that it is vital to tradeoff the complexity and number of options for risk elicitation methods in surveys.
Journal: Applied Economics
Pages: 6090-6099
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784385
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784385
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6090-6099




Template-Type: ReDIF-Article 1.0
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Author-Name: Xiaoyi Hu
Author-X-Name-First: Xiaoyi
Author-X-Name-Last: Hu
Title: Order imbalance beta and stock returns
Abstract: 
 This paper studies the impact of order imbalance beta on cross-sectional stock returns in the Chinese stock market. We measure the daily order imbalance beta, which is defined as the sensitivity of stock returns to changes in stock order imbalance, and show at the individual stock level that stocks with higher order imbalance betas contemporaneously have higher average returns. Furthermore, we find that higher order imbalance beta stocks tend to be smaller, and have lower trading volumes, lower prices and lower turnover rates. Moreover, we find that the long-horizon (1-, 3-, 6- and 12-month) effect of order imbalance beta on stock returns is consistent with the previous daily effect. Finally, we prove that the positive relationship between order imbalance beta and stock returns is robust in different stock markets in China and when using different minimum day limits (30, 45 and 60 days) to estimate order imbalance beta.
Journal: Applied Economics
Pages: 6100-6113
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784386
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784386
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6100-6113




Template-Type: ReDIF-Article 1.0
Author-Name: Yanan Chen
Author-X-Name-First: Yanan
Author-X-Name-Last: Chen
Author-Name: Kyle A. Kelly
Author-X-Name-First: Kyle A.
Author-X-Name-Last: Kelly
Title: Rate of return to schooling and business cycles
Abstract: 
 This paper examines the effects of the economic conditions – unemployment rate and unemployment change – on the rate of returns to schooling, as well as the effects on the gender difference in the returns to schooling during business cycles. Data from American Community Survey 2000–2017 shows that economic conditions have significant effects on the rate of return to schooling for both men and women, and the gender difference exists. Unemployment has positive effects on the rate of return to schooling for both men and women. The returns to schooling are expected to increase in recessions and decrease in expansions for both men and women. In addition, the effects are greater for men than for women. The female-male difference in the rate of return to schooling is expected to be smaller as unemployment rate goes up and greater as unemployment rate goes down. We also find men’s returns to schooling are more sensitively responded to the economic conditions change than women’s.
Journal: Applied Economics
Pages: 6114-6122
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784387
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784387
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6114-6122




Template-Type: ReDIF-Article 1.0
Author-Name: Florian Kiesel
Author-X-Name-First: Florian
Author-X-Name-Last: Kiesel
Author-Name: Florian Manz
Author-X-Name-First: Florian
Author-X-Name-Last: Manz
Author-Name: Dirk Schiereck
Author-X-Name-First: Dirk
Author-X-Name-Last: Schiereck
Title: The conditional stock market response to banks’ distressed asset sales on CDS availability
Abstract: 
 This paper analyzes the stock market feedback on bank announcements of non-performing loan (NPL) sales, conditional on whether credit default swaps (CDS) are traded on the vendor bank’s debt or not. Using a sample of 259 NPL sale announcements from 2012–2018, we find that NPL sales are related to positive abnormal stock returns if there is no CDS trading on the vendor bank’s debt. In contrast, if a CDS on the bank’s debt is outstanding, we find a negative stock market reaction. Similarly, we provide evidence that the positive market reaction is muted for banks that are considered too-big-to-fail. While the regulator currently strengthens NPL sales, our results provide evidence that CDS trading reassigns banks’ risk exposure.
Journal: Applied Economics
Pages: 6123-6135
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784388
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784388
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6123-6135




Template-Type: ReDIF-Article 1.0
Author-Name: Tânia Gonçalves
Author-X-Name-First: Tânia
Author-X-Name-Last: Gonçalves
Author-Name: Lina Lourenço-Gomes
Author-X-Name-First: Lina
Author-X-Name-Last: Lourenço-Gomes
Author-Name: Lígia Pinto
Author-X-Name-First: Lígia
Author-X-Name-Last: Pinto
Title: Modelling consumer preferences heterogeneity in emerging wine markets: a latent class analysis
Abstract: 
 The purpose of this study is to explore the Russian and Chinese emerging markets for imported wines, by assessing Beijing and Moscow consumer demand for different attributes. This study employs the Discrete Choice Experiments technique to evaluate consumer preferences and willingness-to-pay for the selected wine attributes (medals, alcohol level, landscape certification, country of origin, grape variety and price). Results from Latent Class models provide evidence of preference heterogeneity and suggest the existence of two distinct consumer segments in China, and three segments in Russia. In both samples, the wine medals and country of origin are the top selected characteristics. Conspicuous consumption tendencies were found in some segments, with price having a positive impact on utility, probably signalling quality.
Journal: Applied Economics
Pages: 6136-6144
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784389
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784389
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6136-6144




Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Thi Thu Ha Nguyen
Author-X-Name-First: Thi Thu Ha
Author-X-Name-Last: Nguyen
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Iqbal Syed
Author-X-Name-First: Iqbal
Author-X-Name-Last: Syed
Title: Consumption smoothing and housing capital gains: evidence from Australia, Canada, and New Zealand
Abstract: 
 Using regional level panel data of three developed countries, comprising Australia, Canada, and New Zealand, the study investigates the response of consumption smoothing to housing capital gains. The consumption smoothing model first revisits the theory of perfect risk sharing. After rejecting a full consumption smoothing hypothesis, the results strongly indicate that the appreciation of house values smooths consumption further. For the sake of comparison, analysing three developed economies reveals the diversification in the response of consumption to long-run output shocks. Canadian residents appear to be more sensitive to permanent domestic output shocks while Australian’s consumption pattern remains unchanged.
Journal: Applied Economics
Pages: 6145-6161
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784390
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784390
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6145-6161




Template-Type: ReDIF-Article 1.0
Author-Name: Heng-Yu Chang
Author-X-Name-First: Heng-Yu
Author-X-Name-Last: Chang
Author-Name: Wu-Yueh Hu
Author-X-Name-First: Wu-Yueh
Author-X-Name-Last: Hu
Author-Name: Hui-Hsuan Liu
Author-X-Name-First: Hui-Hsuan
Author-X-Name-Last: Liu
Author-Name: Huei-Cheng Sue
Author-X-Name-First: Huei-Cheng
Author-X-Name-Last: Sue
Title: Does women on board affect the socially responsible firms’ effectiveness of internal control?
Abstract: 
 This study examines the relationship between corporate social responsibility (CSR) and the auditor’s commitment to internal control which strengthens the internal control system and reduces fraud. We further investigate the moderating role of gender diversity to validate the effectiveness of internal control in socially responsible firms. The logit model is employed based on 15,511 firm-year observations during 2004–2013. The findings suggest that the internal control effectiveness is positively associated with corporate conducts in social responsibility, and gender diversity strengthens the relationship between CSR and internal control effectiveness, validating that women on board indeed increases corporate transparency and board accountability.
Journal: Applied Economics
Pages: 6162-6170
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784836
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784836
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6162-6170




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Robert Mudida
Author-X-Name-First: Robert
Author-X-Name-Last: Mudida
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Title: Are central bank policy rates in Africa cointegrated? Evidence from a fractional cointegration approach
Abstract: 
 We analyse bilateral linkages between Central Bank Policy Rates in Africa and the US, the UK, Japan, Canada, China and the Eurozone using fractional integration and cointegration. Univariate analysis documents evidence of higher than 1 integration for the African countries. For the developed countries, the orders of integration are also above 1 in all markets except for Japan. On bivariate relationships among the countries, we find evidence of cointegration in a number of cases. The article reinforces the view that it will be difficult for many African countries to pursue independent monetary policies that do not consider global policy rate developments.
Journal: Applied Economics
Pages: 6171-6182
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1785619
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1785619
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6171-6182




Template-Type: ReDIF-Article 1.0
Author-Name: Mingming Pan
Author-X-Name-First: Mingming
Author-X-Name-Last: Pan
Author-Name: Brian Chi-ang Lin
Author-X-Name-First: Brian Chi-ang
Author-X-Name-Last: Lin
Title: An econometric analysis of Hispanic migration in the United States
Abstract: 
 This paper investigates the spatial redistribution pattern of Hispanics driven by internal migration tendencies in the United States, using American Community Survey (ACS) Public Use Microdata Sample (PUMS) data. We formulate three econometric models to study the internal migratory behaviour of Hispanics. More importantly, to uncover potential congestion and spillover effects, we introduce a novel variable into migration research, namely, the Neighbouring Hispanic Community. Our findings indicate that domestic migration of Hispanics leads to agglomeration of Hispanics, with the strongest agglomeration occurring in the states bordering the most concentrated states. While the congestion effect tends to weaken the agglomeration in the most concentrated states, the Hispanic-sparse states do not tend to receive Hispanics. The underlying force of potential dispersion is congestion and spillover from the highly concentrated states to their nearby states. Incorporating personal attributes into the analysis has provided some support for the spatial assimilation theory.
Journal: Applied Economics
Pages: 6183-6198
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1786493
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1786493
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6183-6198




Template-Type: ReDIF-Article 1.0
Author-Name: Lafang Wang
Author-X-Name-First: Lafang
Author-X-Name-Last: Wang
Author-Name: Bin Zhang
Author-X-Name-First: Bin
Author-X-Name-Last: Zhang
Author-Name: Rui Xie
Author-X-Name-First: Rui
Author-X-Name-Last: Xie
Author-Name: Bin Su
Author-X-Name-First: Bin
Author-X-Name-Last: Su
Title: The drivers of export value-added in China’s provinces: a multi-regional input–output model
Abstract: 
 It is vital to calculate Chinese provinces’ exports in domestic and global value chains from the perspective of value-added to address the problem of double counting. In this study, we calculated the direct and indirect domestic value-added in exports of 30 Chinese provinces using cross-border and cross-regional input–output tables in 2007 and 2012. We analysed the drivers of export value-added based on structural decomposition analysis. The results show that there is a value-added spatial imbalance in trade development. The export value-added of eastern provinces is significantly higher than that of central and western provinces, but this imbalance is gradually improving. The domestic value chain is the main channel for each province to realize export value-added, and the province production channels account for the highest proportion in this chain. The export value-added through international production channels is relatively small but growing in importance. The structural analysis shows that the increase of Chinese provinces’ export value-added is mainly caused by an increase of export scale and the provincial multiplier effect, while the value-added ratio of Chinese provinces has the main restraining effect. The spillover effect from industrial cooperation between provinces and other economies also increases the domestic value-added of exports.
Journal: Applied Economics
Pages: 6199-6214
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1787322
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1787322
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6199-6214




Template-Type: ReDIF-Article 1.0
Author-Name: Iacopo Odoardi
Author-X-Name-First: Iacopo
Author-X-Name-Last: Odoardi
Author-Name: Dario D’Ingiullo
Author-X-Name-First: Dario
Author-X-Name-Last: D’Ingiullo
Author-Name: Donatella Furia
Author-X-Name-First: Donatella
Author-X-Name-Last: Furia
Title: Human capital and the reduction of inequalities: an intra-national analysis in Italy
Abstract: 
 Human capital is a fundamental economic resource in the knowledge economy era, and improvements in education are usually associated with both economic development and the reduction of inequality. In Italy, these relationships are empirically controversial due to structural weaknesses (e.g., low improvements in labour productivity) and a poor capacity to leverage the returns from education. At the same time, the strong North-South dualism in the country suggests that there are inequalities in human capital endowment that may be exacerbated by the different responses of the regions to common problems. We test the effect of labour force human capital in Italy (observed through worker education level) on income inequality in the 2004–2016 period using regional data. The results suggest that the hypothesized mechanism works as expected in the more developed Centre-North, while structural difficulties hamper the reduction of inequality in the South, where, however, social capital plays a positive role in reducing the income inequalities.
Journal: Applied Economics
Pages: 6215-6228
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1788708
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1788708
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6215-6228




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoshi Zhou
Author-X-Name-First: Xiaoshi
Author-X-Name-Last: Zhou
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Alan Renwick
Author-X-Name-First: Alan
Author-X-Name-Last: Renwick
Author-Name: Gucheng Li
Author-X-Name-First: Gucheng
Author-X-Name-Last: Li
Title: Off-farm work decisions of farm couples and land transfer choices in rural China
Abstract: 
 Although previous studies have widely examined the association between off-farm work participation and land use behaviours of rural households, little attention has been paid to the effects of the joint off-farm work decisions of farm couples on land transfer choices. This study investigates the determinants of farm couples’ off-farm work participation, using a seemingly unrelated bivariate probit regression model and survey data collected from rural China. We also estimate the impact of the joint off-farm work decisions of farm couples on land transfer choices by employing a multinomial logit model and controlling for the endogeneity issues of off-farm work variables. The empirical results show that farm couples are jointly making decisions to work off the farm, but their decisions affect household land transfer choices differently. In particular, we show that the husbands participating in the off-farm work are more likely to rent in land, while their wives are less likely to do so. Both the husbands and wives are more likely to rent out land if they work off the farm. Our findings highlight the importance of farm couples’ off-farm work decisions in stimulating the development of rural land rental markets.
Journal: Applied Economics
Pages: 6229-6247
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1788709
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1788709
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6229-6247




Template-Type: ReDIF-Article 1.0
Author-Name: Mamit Deme
Author-X-Name-First: Mamit
Author-X-Name-Last: Deme
Author-Name: Ali M. A. Mahmoud
Author-X-Name-First: Ali M. A.
Author-X-Name-Last: Mahmoud
Title: Effect of quantity and quality of education on per capita real-GDP growth: evidence from low- and middle-income African countries
Abstract: 
 Although several empirical studies have investigated the growth impact of the quantity of schooling in African countries, research on the impact of schooling quality (the degree to which schooling nurtures professional and cognitive skills) is rare. To fill this research gap, this study examines the effects of the quantity and quality of education on per capita real-GDP growth in low-income and a combination of low- and middle-income African countries using dynamic generalized method of moment estimation on panel data from 2003 to 2016. The results suggest the quantities of primary and secondary education have a positive and statistically significant impact on per capita real-GDP growth; however, the correlation between the quality of education and economic growth is weak and not robust. Furthermore, standardized coefficients indicate the quantity of primary education has a stronger impact on growth than the quantity of secondary education and quality of education, and the quantity of secondary education has a stronger impact on growth than the quality of education. Overall, these results suggest policy authorities should target both the quantity and quality of education to achieve per capita real-GDP growth, with a particular focus on ensuring universal primary education.
Journal: Applied Economics
Pages: 6248-6264
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789058
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789058
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6248-6264




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Pinar Sener
Author-X-Name-First: Pinar
Author-X-Name-Last: Sener
Title: The convergence of ethical investment business models and their reliance on the conventional US investment market
Abstract: 
 This study investigates the extent of convergence of the two key types of ethical investment business models: Islamic Finance (IF) investment and Socially Responsible Investment (SRI) and the level to which these ethical business models are disconnected from the conventional investment market. We undertake an empirical assessment using three key US stock indexes: the Dow Jones Industrial Average, the Dow Jones Islamic Market, and the Dow Jones Sustainable Index. We find that IF and SRI indexes show significant similarities, suggesting that the ethical investment models share common moral and societal values and react similarly to market forces indicating convergence. We also find that the ethical investment models appear to be closely dependent on the conventional US stock market, suggesting inefficiency in the ethical investment model and, therefore, a dominant effect of conventional finance market on ethical investments. These findings are relevant as they allow us to better clarify the perceived convergence/divergence of values in IF and SRIs and to measure the degree of efficiency and credibility of ethical investment models to determine whether they are capable of successfully managing investments, in consideration of social, environmental, and economic factors, with fair, sustainable, and responsible outcomes.
Journal: Applied Economics
Pages: 6265-6276
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789059
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789059
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6265-6276




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Applied Economics
Pages: i-i
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1809179
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1809179
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:i-i




Template-Type: ReDIF-Article 1.0
Author-Name: Liangcheng Wang
Author-X-Name-First: Liangcheng
Author-X-Name-Last: Wang
Author-Name: Yining Dai
Author-X-Name-First: Yining
Author-X-Name-Last: Dai
Author-Name: Yifan Zhang
Author-X-Name-First: Yifan
Author-X-Name-Last: Zhang
Author-Name: Yuye Ding
Author-X-Name-First: Yuye
Author-X-Name-Last: Ding
Title: Auditor gender and stock price crash risk: evidence from China
Abstract: 
 Stock price crash risk is attributed to agency problems and information asymmetry. Auditors generally play a more important governance function in countries with weak legal institutions. Previous studies document that audit judgements and information processing differ by auditor gender, which ultimately impacts the quality of audited financial reporting and the governance role. This study examines the relationship between auditor gender and stock price crash risk, particularly whether female auditors may reduce stock price crash risk because of their risk aversion and ethics. Using a large sample in China with weak legal institutions, this study finds that female auditors play a governance role in curbing stock price crash risk, and the effect is dominant in the firms with high agency costs. Also, these findings are robust to a battery of tests. Finally, this study conducts two sets of cross-sectional analyses, indicating that the effect of auditor gender mostly concentrates on non-state-owned enterprises with high agency costs, and on firms with non-busy auditors that are deemed to have sufficient time to properly engage their audits. This study extends the literature on determinants of crash risk and has implications for firms, stakeholders and monitors over reducing crash risk to keep sustainable growth.
Journal: Applied Economics
Pages: 5995-6008
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1808576
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808576
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:5995-6008




Template-Type: ReDIF-Article 1.0
Author-Name: Rae Yule Kim
Author-X-Name-First: Rae Yule
Author-X-Name-Last: Kim
Title: An unforeseen story of alpha-woman: breadwinner women are more likely to quit the job in work-family conflicts
Abstract: 
 Extensive research studied the effect of work-family conflicts on employee turnover, however, limited studies explored how work-family conflicts might influence the turnover decision. This paper utilizes role congruity theory and predicts that the employee vulnerability to work-family conflicts might be enhanced when their perceived and actual parental roles are incongruent. This study examines the life history of 8,616 working parents in the U.S. National Longitudinal Surveys and finds that there is a gender difference in how employees respond to increasing family demands. Ironically, the results of this study indicate that growing family demands influence women to quit the job when they are the dominant financial provider to the family. Family demands did not have a significant effect on employee turnover for non-breadwinner women. Men are more likely to stay in the job as the family demand increases. The findings suggest that role-incongruity might be a substantial influence on how employees handle work-family conflicts. We also discus sthe policy implications from this study.
Journal: Applied Economics
Pages: 6009-6021
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781775
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781775
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6009-6021




Template-Type: ReDIF-Article 1.0
Author-Name: Burcu Kapar
Author-X-Name-First: Burcu
Author-X-Name-Last: Kapar
Author-Name: Steven Buigut
Author-X-Name-First: Steven
Author-X-Name-Last: Buigut
Title: Effect of Qatar diplomatic and economic isolation on Qatar stock market volatility: an event study approach
Abstract: 
 In this study we assess the impact of the political and economic blockade of Qatar, as well as four other events related to the blockade on Qatar’s stock market volatility. One of these events occurred before the June 5 2017 blockade while the others occurred after. We use volatility event-study  approach to test the abnormal unsystematic volatility in stock returns. We reveal that stock market volatility has reacted significantly to the blockade as well as to other related events that happened before and after the blockade. Our findings highlight the importance of continuing, and even bolstering, the ongoing mediation efforts to reduce the risk of a resurgence of hostilities. As there is no resolution yet, there is still a risk of future market volatility and thus changes in portfolio allocation and investment decisions not only in Qatar but also in the GCC.
Journal: Applied Economics
Pages: 6022-6030
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781776
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781776
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6022-6030




Template-Type: ReDIF-Article 1.0
Author-Name: Asad Dossani
Author-X-Name-First: Asad
Author-X-Name-Last: Dossani
Author-Name: John Elder
Author-X-Name-First: John
Author-X-Name-Last: Elder
Title: Uncertainty and energy extraction
Abstract: 
 We examine the effects of uncertainty by investigating the effects of oil price uncertainty on employment in domestic oil and gas extraction. This industry is interesting to examine for two reasons. First, employment in this industry should be closely linked to oil prices, facilitating identification of more subtle economic relations related to uncertainty. For example, recent research finds that uncertainty about oil prices tends to diminish drilling activity in a small sample of drilling rigs in Texas. Second, the response of this industry to negative shocks to the supply of oil, for example, should be opposite that of aggregate employment. We characterize the univariate properties of the time series with a two-state Markov switching model, and we then estimate a vector autoregression with conditionally heteroskedastic errors, in which the conditional variance is permitted to interact with the conditional mean. We find that employment in oil and gas extraction cycles through episodes of boom and bust that are tightly linked to oil prices, in contrast to aggregate employment. We also find that uncertainty about oil prices has a negative and quantitatively large effect on employment in this sector. Our analysis is robust to different measures of uncertainty, including stochastic volatility and implied volatility.
Journal: Applied Economics
Pages: 6031-6044
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1782337
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1782337
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6031-6044




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Bassam M. AbuAl-Foul
Author-X-Name-First: Bassam M.
Author-X-Name-Last: AbuAl-Foul
Title: Oil prices and experts’ forecasts of seven exchange rates
Abstract: 
 Research indicates that survey-based forecasts of exchange rates fail to be rational. In addition, the literature points to oil prices as a key factor in determining/predicting exchange rates. We investigate these two research topics by focusing on Blue Chip multi-month forecasts of seven exchange rates for 1999–2015. Our investigation utilizes the recent forecast evaluation method that allows for the possibility of asymmetric loss. We show that Blue Chip forecasts, while free of systematic bias, cannot beat the random walk benchmark, and, at some forecast horizons, the errors fail to be orthogonal to changes in oil prices. We further show that, for four out of seven exchange rates, the change in oil prices explains the information content difference between the Blue Chip and random walk forecasts. Put together, our findings suggest that the inaccuracy of Blue Chip forecasts may be in part due to an inefficient use of oil price information available at the time of the forecast and, thus, forecasters should pay special attention to oil price movements when forecasting exchange rates.
Journal: Applied Economics
Pages: 6045-6056
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1782338
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1782338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6045-6056




Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Author-Name: Luca Gambarelli
Author-X-Name-First: Luca
Author-X-Name-Last: Gambarelli
Author-Name: Silvia Muzzioli
Author-X-Name-First: Silvia
Author-X-Name-Last: Muzzioli
Title: The use of option prices to assess the skewness risk premium
Abstract: 
 The aims of this study are twofold. First, to determine the sign and magnitude of the skewness risk premium (SRP) in the Italian index option market using two procedures: (i) skewness swap contracts, (ii) option trading strategies consisting of positions in options and their underlying assets. Second, to investigate the term structure of the SRP for 30, 60 and 90-day maturities to provide investors with a proper time horizon for profitable skewness trading strategies. Several results are obtained. First, the SRP, defined as the difference between the physical and the risk-neutral skewness, is positive and statistically and economically significant. These findings indicate that the SRP does exist, it is positive in sign, and it can be quantified. Second, the SRP is higher in magnitude for short-term maturity (€35 for the 30-day maturity) and lower for 60-day and 90-day maturities (both about €27). Third, skewness trading strategies confirm our finding of a positive and economically significant SRP. Fourth, a strategy that sells out-of-the-money puts is more profitable for medium-term maturities compared to short-term maturities. A strategy that takes a long position on out-of-the-money calls, and a short position on out-of-the-money puts, yields a higher return, if near-term options are used.
Journal: Applied Economics
Pages: 6057-6074
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1783430
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1783430
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6057-6074




Template-Type: ReDIF-Article 1.0
Author-Name: Bülent Güloğlu
Author-X-Name-First: Bülent
Author-X-Name-Last: Güloğlu
Author-Name: Güzin Bayar
Author-X-Name-First: Güzin
Author-X-Name-Last: Bayar
Author-Name: Selman Tokpunar
Author-X-Name-First: Selman
Author-X-Name-Last: Tokpunar
Title: Effect of foreign trade on industrial employment: the case of Turkey
Abstract: 
 This study aims to define the main determinants of employment in Turkish manufacturing industry and to analyse foreign trade-employment relationship. Turkey’s employment equation is estimated using panel data covering quarterly data for the period 2005–2015 and NACE Rev. 2. three digit manufacturing industry sectors. For this purpose Augmented Mean Group method is modified using instrumental variable techniques. Augmented Mean Group (AMG) method is a newly developed panel estimation method that takes into consideration cross-sectional dependency and parameter heterogeneity. However, the method does not take into consideration endogeneities. We offer a new estimation method ‘Instrumental Variables Augmented Mean Group (IV-AMG)’ to extent AMG to account for endogeneities and compare the results obtained by the two estimators. Regression analyses show that, when there are endogeneities, AMG method gives implausible results.
Journal: Applied Economics
Pages: 6075-6089
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1784384
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784384
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6075-6089




Template-Type: ReDIF-Article 1.0
Author-Name: Hao Wang
Author-X-Name-First: Hao
Author-X-Name-Last: Wang
Author-Name: Jan Fidrmuc
Author-X-Name-First: Jan
Author-X-Name-Last: Fidrmuc
Author-Name: Qi Luo
Author-X-Name-First: Qi
Author-X-Name-Last: Luo
Author-Name: Mingzhong Luo
Author-X-Name-First: Mingzhong
Author-X-Name-Last: Luo
Title: Exploring the determinants of on-farm transitions: Evidence from rural China
Abstract: 
 To shed light on the sustainable development of rural areas, we study the determinants of transitions from subsistence farming into either formal agricultural employment or agricultural entrepreneurship based on a recent nationally representative survey dataset. We pay particular attention to the roles of different capital endowments broadly including human, financial, natural, social and political capital. Our results show that human, natural, social and political capital are all important determinants of rural households’ transitions to on-farm employment and entrepreneurship while financial capital plays a limited role. These findings are robust to fully controlling for off-farm transitions as part of the household occupational strategy.
Journal: Applied Economics
Pages: 5667-5686
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770194
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770194
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5667-5686




Template-Type: ReDIF-Article 1.0
Author-Name: Xinjian Cui
Author-X-Name-First: Xinjian
Author-X-Name-Last: Cui
Author-Name: Xuhui Peng
Author-X-Name-First: Xuhui
Author-X-Name-Last: Peng
Author-Name: Jia Jia
Author-X-Name-First: Jia
Author-X-Name-Last: Jia
Author-Name: Dongxiao Wu
Author-X-Name-First: Dongxiao
Author-X-Name-Last: Wu
Title: Does board independence affect environmental disclosures by multinational corporations? Moderating effects of national culture
Abstract: 
 Over the past two decades, corporate social responsibility has become an important topic in business practice research. In this study, we investigate the relationship between board independence and environmental disclosures made by multinational corporations (MNCs) and the moderating effects of national culture on that relationship. We empirically test these objectives with a data set of 151 MNCs based in China, Japan, the UK, and the USA, using content analysis and a new method for measuring environmental disclosures of MNCs. Results indicate (1) a significantly positive relationship between board independence and environmental disclosures for MNCs and (2) that masculinity and uncertainty avoidance negatively moderate this relationship, demonstrating the important role of culture in corporate disclosures.
Journal: Applied Economics
Pages: 5687-5705
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770681
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770681
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5687-5705




Template-Type: ReDIF-Article 1.0
Author-Name: Dinghai Xu
Author-X-Name-First: Dinghai
Author-X-Name-Last: Xu
Title: Modelling asset returns under price limits with mixture of truncated Gaussian distribution
Abstract: 
 In this paper, we propose to use the mixture of truncated Gaussian distribution in modelling the financial asset return distribution under price limits. Theoretically, while retaining many convenient statistical properties of the Gaussian distribution, the proposed model assumes a flexible structure accommodating some important special features of the return data under price restrictions, such as the clusters near the bounds (due to the ‘bound effect’) and peaked shape around zero (due to the minimum-tick size effect). It can also allow for a wide range of variances and kurtosis even with a bounded domain. These are the salient features that the conventional models (such as the Normal, Truncated Normal and Censored Normal) do not have. For empirical illustration, we apply our proposed model to stocks under different price restrictions. Some common interesting features have been found. Furthermore, in our Value-at-Risk analysis, we find that ignoring the bound cluster in the tail of the distribution could lead to a significant overestimation of the number of violations and produce unreliable Value-at-Risk measures. In addition, we also find that the proposed model has a better empirical performance when the data are highly asymmetric and heavy-tailed.
Journal: Applied Economics
Pages: 5706-5725
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770682
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770682
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5706-5725




Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Moreno-Gené
Author-X-Name-First: Jordi
Author-X-Name-Last: Moreno-Gené
Author-Name: Natalia Daries
Author-X-Name-First: Natalia
Author-X-Name-Last: Daries
Author-Name: Eduard Cristóbal-Fransi
Author-X-Name-First: Eduard
Author-X-Name-Last: Cristóbal-Fransi
Author-Name: Laura Sánchez-Pulido
Author-X-Name-First: Laura
Author-X-Name-Last: Sánchez-Pulido
Title: Snow tourism and economic sustainability: the financial situation of ski resorts in Spain
Abstract: 
 The aim of this article is to analyse the profitability of ski resorts in Spain and identify its associated determining factors in order to verify whether these are economically sustainable taking into account the internal and external aspects affecting them. To this end, the article first addresses the importance of snow tourism in Spain, before going on to analyse the influence that climate change is having on this type of tourism. A series of economic and structural ratios are then applied to the financial statements of ski resorts in Spain with the aim of establishing a base diagnosis for their situation. Finally, a regression model is estimated, the results of which reveal the more profitable ski resorts at the economic level to be those with the largest stations, a direct relationship being observed between profitability and size. The results also confirm the negative consequences of high indebtedness and the non-significant effects of using snowmaking systems.
Journal: Applied Economics
Pages: 5726-5744
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770683
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770683
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5726-5744




Template-Type: ReDIF-Article 1.0
Author-Name: Dongwoo Kim
Author-X-Name-First: Dongwoo
Author-X-Name-Last: Kim
Title: Investor churn analysis in a P2P lending market
Abstract: 
 This study aims to determine why investors leave a peer-to-peer (P2P) lending market, and the pathways through which several factors affect investor churn. To this end, this study performed Cox proportional hazard and Kaplan-Meier survival analyses, as well as a linear regression analysis of data from Moneyauction, Korea’s first, but recently failed, P2P platform. The results show that investors’ investment patterns (i.e., investment frequency, amount, and method) affect churn directly or indirectly via investment profitability. This result supplements the findings in the stock market that the higher the trading frequency and volume are, the lower the returns are in the P2P lending market. Furthermore, this study is the first to cover the issue of investor churn in P2P lending markets and to reveal the detailed pathways of investors’ investment patterns in both the P2P and traditional financial markets in terms of profitability and churn.
Journal: Applied Economics
Pages: 5745-5755
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770684
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770684
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5745-5755




Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Yan
Author-X-Name-First: Qiang
Author-X-Name-Last: Yan
Author-Name: Fangyu Ye
Author-X-Name-First: Fangyu
Author-X-Name-Last: Ye
Title: Financing equilibrium in a three-echelon supply chain: the impact of a limited bank loan
Abstract: 
 This paper studies a three-echelon supply chain consisting of a commercial bank, a supplier and a capital constrained retailer. The newsvendor-like retailer may not borrow up to what she needs from the bank due to low credit rating, and the remaining part may resort to the upstream supplier. Under the hybrid financing scheme under combination of bank credit and trade credit (BT), we characterize the optimal loan ratio for the commercial bank, the optimal wholesale price for the supplier and the optimal order quantity for the retailer, respectively. We investigate the impact of the bank loan ratio on the participants’ optimal decisions and profits. Comparing with the cases of no financing (NF) and bank credit financing only (BF), we determine financing preferences of the supplier and the retailer. Furthermore, we find that there exists a Pareto improvement region, where both the supplier and the retailer tend to accept BF or BT so that both participants can be better off in contrast to NF.
Journal: Applied Economics
Pages: 5756-5769
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1772457
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1772457
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5756-5769




Template-Type: ReDIF-Article 1.0
Author-Name: Claudiu Tiberiu Albulescu
Author-X-Name-First: Claudiu Tiberiu
Author-X-Name-Last: Albulescu
Author-Name: Cornel Oros
Author-X-Name-First: Cornel
Author-X-Name-Last: Oros
Title: Inflation, uncertainty, and labour market conditions in the US
Abstract: 
 Recent inflation dynamics in the United States (US) questioned the role of driving forces of inflation in the long run. Although the US recorded one of the longest economic recovery periods and the labour market conditions improved after the Global crisis from 2008 to 2009, the inflation level remained relatively low. Starting from this evidence, the purpose of our paper is to shed light to the influence of inflation uncertainty and labour market conditions on the US inflation level. To this end, we use two bounded measures of inflation uncertainty, and we compare a linear with an asymmetric Autoregressive Distributed Lag (ARDL) framework. We show that both inflation uncertainty and labour market conditions explain the long-run US inflation. However, these results are sensitive to the way the inflation uncertainty is computed. Moreover, contrary to the recent affirmations regarding the vanishing role of labour market in explaining the US inflation in the long run, we show that the labour market influence is stronger in the post-crisis, compared with the pre-crisis period. Therefore, the monetary policymakers cannot make abstraction of labour market developments in anticipating the US inflation level.
Journal: Applied Economics
Pages: 5770-5782
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1772458
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1772458
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5770-5782




Template-Type: ReDIF-Article 1.0
Author-Name: Jingyi Wang
Author-X-Name-First: Jingyi
Author-X-Name-Last: Wang
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Hui Qiao
Author-X-Name-First: Hui
Author-X-Name-Last: Qiao
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: Impact assessment of agriculture, energy and water on CO2 emissions in China: untangling the differences between major and non-major grain-producing areas
Abstract: 
 Due to the use of abundant fossil and non-fossil fuels, the agricultural sector has contributed to large amounts of carbon dioxide (CO2) emissions in China. Meanwhile, the agricultural sector is the largest consumer of water in China. To investigate the effects of agricultural output, energy consumption and water use on CO2 emissions in China, a panel of 30 provinces for 2004–2017 is utilized. Also, to control the potential endogeneity, the orthogonal-difference Generalized Method of Moments (GMM) is used as the benchmark estimation method. Moreover, the Dumitrescu and Hurlin (D-H) panel causality test is employed to discover the causal relations among all the variables. Considering the differences in various agricultural areas in China, the 30 provinces are further divided into major and non-major grain-producing areas. The empirical results indicate that CO2 emission is responsive to economic growth, energy consumption, agricultural output and water use with positive elasticities in China. However, at the regional level, agricultural output only has significant impact on CO2 emissions in major grain-producing areas. Also, major and non-major grain-producing areas provide mixed directionality of causality among the variables. Finally, several policy implications are highlighted for the Chinese government with respect to mitigating CO2 emissions and promoting growth in the agricultural sector.
Journal: Applied Economics
Pages: 6482-6497
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1796920
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796920
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6482-6497




Template-Type: ReDIF-Article 1.0
Author-Name: Graziella Bonanno
Author-X-Name-First: Graziella
Author-X-Name-Last: Bonanno
Author-Name: Nadia Fiorino
Author-X-Name-First: Nadia
Author-X-Name-Last: Fiorino
Author-Name: Giampaolo Garzarelli
Author-X-Name-First: Giampaolo
Author-X-Name-Last: Garzarelli
Author-Name: Stefania Patrizia Sonia Rossi
Author-X-Name-First: Stefania Patrizia Sonia
Author-X-Name-Last: Rossi
Title: Public guarantee schemes, corruption and gender: a European SME-level analysis
Abstract: 
 Does a corrupt politico-institutional environment affect the demand of public subsidies for credit access – so-called public guarantee schemes – by small and medium-sized enterprises (SMEs) helmed by female entrepreneurs? The paper tackles this question by using a large sample of European SMEs over 2010–2014 while also carefully addressing possible endogeneity issues. It provides robust evidence that, compared to their male counterparts, female entrepreneurs: (a) tend to demand more public subsidies, and (b) are more sensitive to the quality of the politico-institutional environment. The upshot is that a corrupt environment is not gender neutral: in light of ‘essential gender features,’ corruption negatively influences SMEs helmed by female entrepreneurs more than male ones.
Journal: Applied Economics
Pages: 6498-6513
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1798342
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1798342
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6498-6513




Template-Type: ReDIF-Article 1.0
Author-Name: Marc A. Poitras
Author-X-Name-First: Marc A.
Author-X-Name-Last: Poitras
Author-Name: Daniel Sutter
Author-X-Name-First: Daniel
Author-X-Name-Last: Sutter
Title: Property rights and resource use: evidence from MLB starting pitchers
Abstract: 
 We conduct a unique test of the efficiency of property rights in major league baseball. The rights to the services of players are resources that can be possessed by the clubs or by the players themselves. This right was effectively reassigned from the club to the individual player when free agency was introduced in 1976. Players, however, only qualify for free agency after 6 years of service, and until that time a temporary property right is possessed by the club. In the absence of efficient bargaining, clubs that possess only a temporary right do not bear the full risk of injury or disability associated with using pitchers. Clubs in this situation can therefore have an incentive to overuse star pitchers. This theoretical prediction is supported by the statistical inferences of our econometric models.
Journal: Applied Economics
Pages: 6514-6524
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1803486
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1803486
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6514-6524




Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Khazaei
Author-X-Name-First: Mehdi
Author-X-Name-Last: Khazaei
Author-Name: Mohammad Azizi
Author-X-Name-First: Mohammad
Author-X-Name-Last: Azizi
Title: How financial performance of world’s top companies are related to business environment?
Abstract: 
 Businesses need an environment in which business conditions in features such as starting a business, registering property, getting credit, paying taxes, trading across borders and enforcing contract be simple. Every year, the world bank publishes a report on the business environment of different countries around the world with the aim of improving doing business environmental conditions. The purpose of the present study is to investigate the relationship between the financial performance of world’s top companies and the business environment indicators. For this purpose, 176 top companies in the world from 2013 to 2018 that were profitable were selected as the statistical population. Doing business annual reports, and Fortune site were used to collect the data. Also the data analysis was done according to the panel data method using Eviews10 software. The results shows that there is a positive relationship between business environment Indicator and financial performance of world’s top companies. On the other hand, the per capita income of the countries in which the top companies belonged was considered as a control variable and the results show that the per capita income has a positive and significant relationship with the financial performance of the top companies in the world.
Journal: Applied Economics
Pages: 6525-6539
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1803487
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1803487
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6525-6539




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian R. Fleissig
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Fleissig
Author-Name: James L. Swofford
Author-X-Name-First: James L.
Author-X-Name-Last: Swofford
Title: The demand for assets through a low-interest rate environment
Abstract: 
 Asset demand is important in many areas of economics. To investigate this, we estimate a globally flexible dynamic Fourier asset demand specification and calculate Morishima elasticities of substitution for six asset categories for the U.S. This specification produces negative own price (user cost) elasticities. The Morishima elasticities show that each of the six asset groups is substitutes. These results suggest that monetary policy efficacy increases in recessions and support the Barnett Critique that central banks should not ignore substitution effects and portfolio adjustments among financial assets and Friedman and Schwartz’s view that saving deposit assets should be included in money.
Journal: Applied Economics
Pages: 6540-6551
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1803489
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1803489
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6540-6551




Template-Type: ReDIF-Article 1.0
Author-Name: Emre Kuvvet
Author-X-Name-First: Emre
Author-X-Name-Last: Kuvvet
Title: When a journalist is assassinated, do financial markets care? The market’s reaction to journalist murders
Abstract: 
 Using comprehensive data on journalist assassinations around the world, we study the effect of journalist killings on stock returns. Our event study results show an average price drop of −0.46% following the murder of a journalist for companies headquartered in the country where the killing occurs. We find that killing a journalist who is an editor, lives locally, or works in television causes the most negative market reaction. In addition, when journalists are killed by military officials or tortured first, the stock prices of firms headquartered in that country declines by 4.63% and 3.01%, respectively.
Journal: Applied Economics
Pages: 6552-6561
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1803490
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1803490
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6552-6561




Template-Type: ReDIF-Article 1.0
Author-Name: Kirti Saxena
Author-X-Name-First: Kirti
Author-X-Name-Last: Saxena
Author-Name: Madhumita Chakraborty
Author-X-Name-First: Madhumita
Author-X-Name-Last: Chakraborty
Title: Should we pay attention to investor attention in forex futures market?
Abstract: 
 We investigate whether forex futures dynamics is responsive to change in investor attention. The currencies used in the study are the AUD (Australian Dollar), CAD (Canadian Dollar), EUR (Euro), GBP (Great Britain Pound) and JPY (Japanese Yen), all in terms of USD. The Google Search Volume Index (SVI) serves as the investor attention proxy. Our results determine the multiplicate relationships of forex futures return and trading volume with SVI (investor attention). Lagged SVI impacts current forex futures return and trading volume. However, there is no nonlinear relationship between forex futures and SVI. Financial contagion among forex futures has also been analysed through the channel of investor attention (SVI). There seems to be hardly any evidence that attention to other currency markets gives rise to the contagion effect. The findings of the study are barely affected by the inclusion of control variables such as currency spot rate and fundamental variables of uncertainty, suggesting that investor attention has an influencing role in the forex futures market.
Journal: Applied Economics
Pages: 6562-6572
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1804050
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1804050
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6562-6572




Template-Type: ReDIF-Article 1.0
Author-Name: Zhepeng Hu
Author-X-Name-First: Zhepeng
Author-X-Name-Last: Hu
Author-Name: Teresa Serra
Author-X-Name-First: Teresa
Author-X-Name-Last: Serra
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Title: Algorithmic quoting, trading, and market quality in agricultural commodity futures markets
Abstract: 
 This paper investigates the effect of algorithmic trading activity, as measured by quoting, on the corn, soybean, and live cattle commodity futures market quality. Using the CME’s limit-order-book data and a heteroscedasticity-based identification approach, we find more intensive algorithmic quoting (AQ) is beneficial to multiple dimensions of market quality. AQ improves pricing efficiency and mitigates short-term volatility, but its effects on liquidity costs are somewhat mixed. Increased AQ significantly narrows effective spreads in the corn and soybean markets, but not in the less traded live cattle futures market. The narrowing in effective spreads emerges from a reduction in adverse selection costs as more informed traders lose their market advantage. There also is evidence that liquidity provider revenues increase with heightened AQ activity in the corn futures market, albeit the effect is not statistically significant in the soybean and live cattle futures markets. The increased revenue points to a tradeoff between the dimensions of market quality, and the need for continued assessment and monitoring of algorithmic trading activity.
Journal: Applied Economics
Pages: 6277-6291
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789060
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789060
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6277-6291




Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: The effectiveness of social distancing in containing Covid-19
Abstract: 
 A statistical measure of the containment of Covid-19 is proposed to describe seven possible outcomes ranging from the worst outcome of ‘beyond control’ and the best outcome of ‘under control with rapid progress towards zero infections’. This measure is used to examine the performance of 10 countries with emphasis on the role of government-imposed measures of social distancing (lockdown, etc.). The results show that social distancing is effective, even though it is difficult to separate the effect of government measures from that of social distancing triggered by personal initiatives. The experience of Sweden shows that social distancing as a personal initiative is inadequate for the purpose of containing the virus. The experience of Brazil shows that taking the virus lightly brings about serious consequences.
Journal: Applied Economics
Pages: 6292-6305
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789061
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789061
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6292-6305




Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Apergis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Apergis
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Weiwei Young
Author-X-Name-First: Weiwei
Author-X-Name-Last: Young
Title: Investigating the impact of auto loans on unemployment: the US experience
Abstract: 
 This paper explores the impact of automobile loan debt on US unemployment. Individuals with heterogeneous economic positions deem automobiles as important durable goods for unemployment exit and expected wage increases. The methodological approach makes use of an Autoregressive Distributed Lag (ARDL) Bound Testing modelling approach to document a negative and significant relationship between auto loans and unemployment. The results survive certain robustness tests, while they seem to confirm certain theoretical arguments posed in the literature, such as that the credit mechanism that dominates the transmission mechanism of monetary policy (credit shocks have a profound significant link with unemployment), while they seem to mitigate the role of alternative theories (where levered households suffer from a ‘debt overhang’ problem that distorts their preferences, making them demand high wages, and the ‘vacancy-posting’ effect) which imply that loans lead to high unemployment. The findings seem to provide significant recommendations to monetary policy makers on strengthening the banking services industry, providing an alternative to monetary policy for labour market intervention.
Journal: Applied Economics
Pages: 6306-6319
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789548
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789548
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6306-6319




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Deng
Author-X-Name-First: Jun
Author-X-Name-Last: Deng
Author-Name: Huifeng Pan
Author-X-Name-First: Huifeng
Author-X-Name-Last: Pan
Author-Name: Shuyu Zhang
Author-X-Name-First: Shuyu
Author-X-Name-Last: Zhang
Author-Name: Bin Zou
Author-X-Name-First: Bin
Author-X-Name-Last: Zou
Title: Minimum-variance hedging of Bitcoin inverse futures
Abstract: 
 We formulate an optimal hedging problem of Bitcoin inverse futures under the minimum-variance framework. We obtain the optimal hedging strategy in closed forms for both short and long hedges and compute hedging effectiveness under the optimal strategy. Our empirical analyses show that the optimal hedging strategy achieves superior effectiveness in reducing risk and outperforms the naïve hedge in all scenarios.
Journal: Applied Economics
Pages: 6320-6337
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789549
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789549
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6320-6337




Template-Type: ReDIF-Article 1.0
Author-Name: Sanjeev Gupta
Author-X-Name-First: Sanjeev
Author-X-Name-Last: Gupta
Author-Name: Michela Schena
Author-X-Name-First: Michela
Author-X-Name-Last: Schena
Author-Name: Seyed Reza Yousefi
Author-X-Name-First: Seyed Reza
Author-X-Name-Last: Yousefi
Title: Revisiting IMF expenditure conditionality
Abstract: 
 We study the long-run relationship between expenditure conditionality in IMF programmes and the composition of public spending. We compile a granular dataset on government expenditure conditions in 115 countries during 1992–2016 and find that it is structural conditionality which delivers lasting benefits. Structural public financial management conditionality has proven effective in boosting long-term levels of education, health, and investment expenditures. We further find that non-structural conditionality (such as spending floors) for raising specific spending categories may come at the expense of other expenditures, such as health. Finally, successful implementation and not mere existence of the conditionality is crucial for improved outcomes.
Journal: Applied Economics
Pages: 6338-6359
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1790494
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1790494
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6338-6359




Template-Type: ReDIF-Article 1.0
Author-Name: Yiyang Luo
Author-X-Name-First: Yiyang
Author-X-Name-Last: Luo
Author-Name: Zheng Pan
Author-X-Name-First: Zheng
Author-X-Name-Last: Pan
Title: Peer effects on student weight: randomization evidence from China
Abstract: 
 This paper investigates peer effects on student weight. Taking advantage of a national survey of middle schools in China, we exploit the BMI variation in randomly assigned classrooms. We find that having heavier peer classmates significantly increases a student’s body weight. The results are consistent across various robustness checks based on a standardized measurement of BMI, alternative peer measures, a spurious correlation with height, and the validity of the instruments. Peer effects are more pronounced among female students, nonlocal students, rural students, and students with longer exposure to classmates. The quantile analysis suggests that the peer effect is stronger at the lower end of the BMI distribution. These findings confirm the presence of social multiplier effects in middle schools, which is helpful in establishing health policies for reducing student overweight.
Journal: Applied Economics
Pages: 6360-6371
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1791312
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1791312
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6360-6371




Template-Type: ReDIF-Article 1.0
Author-Name: Emma Galli
Author-X-Name-First: Emma
Author-X-Name-Last: Galli
Author-Name: Ilde Rizzo
Author-X-Name-First: Ilde
Author-X-Name-Last: Rizzo
Author-Name: Carla Scaglioni
Author-X-Name-First: Carla
Author-X-Name-Last: Scaglioni
Title: Is transparency spatially determined? An empirical test for Italian municipalities
Abstract: 
 In this article, we aim to assess whether transparency is characterized by a spatial dimension. To this end, we use a new composite indicator (CTI) for a large sample of Italian municipalities and control for several factors (socio-economic, fiscal, and politico-institutional), which, according to the literature, affect transparency. Our results suggest that there is a statistically significant transparency clustering across the Italian municipalities which follows a dichotomic pattern, i.e. either very low or very high. Moreover, the empirical analysis shows that spatial dependence matters and ‘transparency mimicking’ takes place among neighbouring municipalities. This behaviour mainly occurs among small municipalities where citizens’ political participation is likely to be greater and the single-ballot electoral system strengthens the incentives for government accountability.
Journal: Applied Economics
Pages: 6372-6385
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795068
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795068
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6372-6385




Template-Type: ReDIF-Article 1.0
Author-Name: Chenlu Dang
Author-X-Name-First: Chenlu
Author-X-Name-Last: Dang
Author-Name: Bingquan Wang
Author-X-Name-First: Bingquan
Author-X-Name-Last: Wang
Author-Name: Weiya Hao
Author-X-Name-First: Weiya
Author-X-Name-Last: Hao
Title: An optimal banking structure from the perspective of enterprise technological innovation ------- empirical evidence from Chinese industrial enterprises
Abstract: 
 This paper applies the incomplete contracts model to study an optimal banking structure corresponding to different levels of technological development from the perspective of technological innovation. The findings indicate that, with the development of technology, there exists an optimal banking structure that matches the real economy and has a dynamic evolution in different stages of economic development. At the same time, an optimal banking structure depends on the level of technological development, which seems to render invalid the argument that one structure is absolutely better than the other. Finally, the paper empirically analyzes the impact of banking structure on technological innovation using the data of China’s industrial enterprises from 2005 to 2009 . The empirical results show firstly that, with economic development and technological progress, an optimal banking structure that promotes technological innovation is biased towards a monopoly structure. Secondly, from the perspective of the sub-regional level of technological progress, a competitive banking structure is more conductive to technological innovation in low-tech areas but, in medium- and high-tech areas, a monopolistic banking structure will further promote technological innovation.
Journal: Applied Economics
Pages: 6386-6399
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795069
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795069
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6386-6399




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon
Author-X-Name-First: Robert
Author-X-Name-Last: Dixon
Author-Name: G. C. Lim
Author-X-Name-First: G. C.
Author-X-Name-Last: Lim
Title: Is the decline in labour’s share in the US driven by changes in technology and/or market power? An empirical analysis
Abstract: 
 In this paper, we provide a perspective on the explanations suggested for the decline in labour’s share in the Nonfinancial Corporations sector of US economy since 1947. The literature identifies two broad groups of explanations for marked variations in the labour share – drivers associated with production technology (e.g. increasing automation or factor augmentation) and drivers that reflect non-technology factors (e.g. increasing market power). We provide a theoretical and empirical framework to understand and estimate the contribution of technology and/or non-technology factors. The key findings are that there was a ‘decoupling’ of wage growth and productivity growth in the US Nonfinancial Corporations sector in the early 2000s, and that there is not a single explanation for the decline in labour’s share in that sector over the period 2001–2013. Changes in production technology and in market power have both contributed to the decline.
Journal: Applied Economics
Pages: 6400-6415
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795072
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795072
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6400-6415




Template-Type: ReDIF-Article 1.0
Author-Name: Óscar Afonso
Author-X-Name-First: Óscar
Author-X-Name-Last: Afonso
Author-Name: Pedro G. Lima
Author-X-Name-First: Pedro G.
Author-X-Name-Last: Lima
Title: A non-scale-directed technical change model with endogenous labor share
Abstract: 
 We extend a directed technical change (DTC) model without scale effects that allows labour share to vary over time. By decomposing the labour share by sectors, skilled and unskilled, and, in line with the empirical evidence, by considering a lower value in the skilled sector, we show that: (i) both the technological-knowledge bias per worker, the skill premium and the relative importance of the skilled sector continue to increase over time until the steady state, as in the baseline model; (ii) the labour share falls over time due to a combination of an increased importance and a lower labour share in the skilled sector; (iii) by considering endogenous labour supply, a relative increase in skilled labour also decreases the labour share during the transitional dynamics.
Journal: Applied Economics
Pages: 6416-6431
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795073
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795073
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6416-6431




Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Koenings
Author-X-Name-First: Fabian
Author-X-Name-Last: Koenings
Author-Name: Giovanni Di Meo
Author-X-Name-First: Giovanni
Author-X-Name-Last: Di Meo
Author-Name: Silke Uebelmesser
Author-X-Name-First: Silke
Author-X-Name-Last: Uebelmesser
Title: University rankings as information source: do they play a different role for domestic and international students?
Abstract: 
 So far, the effect of rankings on university choice has mostly been explored for Anglo-Saxon countries with a focus on domestic students. Using data from a medium-sized German university, we study the importance of rankings for domestic and international students. Results from an exploratory factor analysis suggest that the university position in rankings is highly relevant for both groups. Differences show up when comparing rankings and other sources of information: domestic students complement advice from classmates and alumni with rankings, while international students do this – if at all – for advice from family and friends. Interestingly, advice from authorities like teachers is substituted for rankings by international students.
Journal: Applied Economics
Pages: 6432-6447
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795075
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795075
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6432-6447




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim
Author-X-Name-Last: Idi Cheffou
Title: Does investor attention to Islamic finance create spillover?
Abstract: 
 This paper examines whether investor attention to Islamic finance creates spillover or not. The answer to this question is relevant to understanding whether the recent growth in Islamic Finance is due to an increase in fundamentals or is more to do with a market attention shock. We examine this question for three developed countries (France, the United Kingdom (the UK) and the United States of America (the USA)), four emerging countries (Saudi Arabia (SA)), the United Arab Emirates (the UAE), Pakistan and India), and the whole world. Our findings show that while the US and the UK lead investor attention to Islamic finance and spillover across the globe, India and Pakistan have experienced the greatest spillover from investor attention for both emerging and developed countries. Saudi Arabia and the UAE, on the other hand, play a somewhat minor role.
Journal: Applied Economics
Pages: 6448-6452
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1796912
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796912
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6448-6452




Template-Type: ReDIF-Article 1.0
Author-Name: Linyue Li
Author-X-Name-First: Linyue
Author-X-Name-Last: Li
Author-Name: Dongzhou Mei
Author-X-Name-First: Dongzhou
Author-X-Name-Last: Mei
Author-Name: Rou Li
Author-X-Name-First: Rou
Author-X-Name-Last: Li
Title: The impact of RMB swap agreements on foreign exchange reserve demand
Abstract: 
 This paper constructs panel data of 150 economies from 2001 to 2017 to study the impact of RMB (Renminbi) swap agreements on foreign exchange reserve demand. The empirical results show that the swap agreements can significantly reduce the foreign reserve demand of non-OECD economies that have relatively insufficient liquidity. From the perspective of specific country classification, economies neighbouring China have higher RMB demand, Latin American and African economies hold less reserve, and commodity exporters are stuck in liquidity-nervous situations, in which RMB swap agreements are able to improve liquidity so that their reserve demand decreases. Regarding the channels of influence, swap agreements impose different impacts on the reserve demand mainly through bilateral trade and more impacts on economies that import more from China. On the contrary, the RMB swap agreements will not affect the OECD economies’ foreign exchange reserve demand.
Journal: Applied Economics
Pages: 6453-6467
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1796916
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796916
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6453-6467




Template-Type: ReDIF-Article 1.0
Author-Name: Harsha Paranavithana
Author-X-Name-First: Harsha
Author-X-Name-Last: Paranavithana
Author-Name: Leandro Magnusson
Author-X-Name-First: Leandro
Author-X-Name-Last: Magnusson
Author-Name: Rod Tyers
Author-X-Name-First: Rod
Author-X-Name-Last: Tyers
Title: Transitions to inflation targeting: panel evidence
Abstract: 
 From panel estimates of an extended version of the Taylor-rule reaction function that adds lagged inflation, output gaps and exchange rates, we confirm that inflation is more central to the setting of policy interest rate when emerging market economies’ (EMEs) central banks follow inflation targeting (IT), while the exchange rate carries more weight for non-IT EMEs. Moreover, lagged output gaps are also play important roles in setting policy interest rates in IT EMEs. Employing a volatility measurement approach, our analysis also confirms that IT does moderate the volatility of inflation and exacerbate that of nominal exchange rates. Yet IT appears less effective in controlling the volatility of real variables, including output volumes.
Journal: Applied Economics
Pages: 6468-6481
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1796919
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796919
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6468-6481




Template-Type: ReDIF-Article 1.0
Author-Name: Yupeng Li
Author-X-Name-First: Yupeng
Author-X-Name-Last: Li
Author-Name: John A. Rizzo
Author-X-Name-First: John A.
Author-X-Name-Last: Rizzo
Title: Timing and payoff of patent purchases: the role of firm size and composition
Abstract: 
 While large pharmaceutical companies continue to dominate drug development and patent acquisition, their timing of drug patent acquisition and subsequent payoffs remain poorly understood. We analysed the effects of firm characteristics on the timing of patent purchases, with a unique data set constructed using publicly available data provided by the United States Patent and Trademark Office (USPTO). We focused on the role of firm size and composition in affecting the timing of patent purchases and the subsequent payoff; particularly, how firms’ R&D intensity and overall scale affect purchasing decisions and commercial success of the drugs. The quantitative results show that, on average, firms with larger scale and stronger R&D departments are more likely to purchase drug patents later; furthermore, a strong R&D department contributes positively to drug sales and market shares through a better selection process of patents. The economics intuition is that firms with a larger scale and greater emphasis on R&D investment have advantages in producing in-house innovation, so they tend to be more selective when buying from outsources. This results in buying patents later and better subsequent commercial performance on the drugs that firms purchased.
Journal: Applied Economics
Pages: 5894-5908
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1778159
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1778159
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5894-5908




Template-Type: ReDIF-Article 1.0
Author-Name: Hyun-Bock Lee
Author-X-Name-First: Hyun-Bock
Author-X-Name-Last: Lee
Author-Name: Cheol-Ho Park
Author-X-Name-First: Cheol-Ho
Author-X-Name-Last: Park
Title: Spillover effects in the global copper futures markets: asymmetric multivariate GARCH approaches
Abstract: 
 This study investigates changes in return and volatility spillovers between the LME/COMEX and the SHFE copper futures markets before and after the global financial crisis and after the introduction of the night trading session (NTS) to the SHFE using asymmetric multivariate GARCH models. The results show that the SHFE has not been stronger to the LME/COMEX in information spillover effects, even though it has grown substantially in terms of trading volume after the crisis. Furthermore, the SHFE does not seem to have a significant influence on international copper futures prices although the Chinese government allowed the NTS to the SHFE.
Journal: Applied Economics
Pages: 5909-5920
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781769
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781769
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5909-5920




Template-Type: ReDIF-Article 1.0
Author-Name: Dusanee Kesavayuth
Author-X-Name-First: Dusanee
Author-X-Name-Last: Kesavayuth
Author-Name: Robert E. Rosenman
Author-X-Name-First: Robert E.
Author-X-Name-Last: Rosenman
Author-Name: Vasileios Zikos
Author-X-Name-First: Vasileios
Author-X-Name-Last: Zikos
Title: The dynamic effects of retirement on well-being
Abstract: 
 In this paper we examine whether and to what extent people anticipate their retirement and adapt to it over time. For identification we use an instrumental variable approach that exploits the eligibility ages for state pension as a source of exogenous variation in retirement status. We show that retirement increases satisfaction with the amount of leisure time up to two years prior to retiring. Upon retirement, individuals reported higher satisfaction with their income and leisure. For leisure the well-being boost did not dissipate over time, but for income satisfaction adaptation was complete. These findings provide new empirical evidence on the causal link between retirement and well-being and suggest that such link may be better understood as a three-stage process occurring before, during and after retirement.
Journal: Applied Economics
Pages: 5921-5935
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781770
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781770
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5921-5935




Template-Type: ReDIF-Article 1.0
Author-Name: Wunhong Su
Author-X-Name-First: Wunhong
Author-X-Name-Last: Su
Author-Name: Xiaobao Song
Author-X-Name-First: Xiaobao
Author-X-Name-Last: Song
Author-Name: Chun Guo
Author-X-Name-First: Chun
Author-X-Name-Last: Guo
Title: Research and development investment and operational performance of listed small and medium-sized enterprises in China
Abstract: 
 This study aims to investigate the impact of research and development (R&D) investment on the operational performance of small and medium-sized enterprises (SMEs) from 2013 to 2017. The findings show that there is a significant negative relation between R&D investment and the operational performance of SMEs in China. This negative effect lasts for three years subsequent to R&D investment. In addition, there is no positive relation between R&D investment and the operational performance of SMEs. The relation between R&D investment and operational performance appears significantly negative for non-state-owned enterprises (non-SOEs) and SMEs with an R&D investment intensity of more than 5%. However, it is non-significant for state-owned SMEs (SOEs) and SMEs with an R&D investment intensity of less than 5%. The two-stage method of the Heckman test and propensity score matching (PSM) are employed in this study to exclude problems of endogeneity, and the results remain robust.
Journal: Applied Economics
Pages: 5936-5948
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781771
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781771
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5936-5948




Template-Type: ReDIF-Article 1.0
Author-Name: Maria E. de Boyrie
Author-X-Name-First: Maria E.
Author-X-Name-Last: de Boyrie
Author-Name: Ivelina Pavlova
Author-X-Name-First: Ivelina
Author-X-Name-Last: Pavlova
Title: Analysing the link between environmental performance and sovereign credit risk
Abstract: 
 This study investigates the effects of a country’s environmental performance on sovereign credit risk. We use sovereign credit default swap (CDS) spreads for a large panel of countries to analyse whether the relationship between environmental performance and credit risk varies by the maturity of the credit instrument and by the level of fiscal performance. Using a dynamic panel generalized method of moments model, we document a negative association between environmental performance and credit risk. This relationship does not exhibit substantial variation by CDS maturity.
Journal: Applied Economics
Pages: 5949-5966
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781772
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781772
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5949-5966




Template-Type: ReDIF-Article 1.0
Author-Name: Petr Janský
Author-X-Name-First: Petr
Author-X-Name-Last: Janský
Title: European banks and tax havens: evidence from country-by-country reporting
Abstract: 
 Banks in the European Union have recently started publicly reporting data on profit, employee numbers, turnover and tax on a country-by-country basis; this new data source is capable of indicating to what extent banks’ profits are geographically aligned with their activities. I introduce one of the largest, hand-collected, publicly available data sets of its kind, which covers almost 50 banks for up to 5 years between 2013 and 2017. Using the data set, I identify the main locations of European bank’s profits, which include major European economies as well as countries often considered tax havens. I find that some of the tax havens have maintained high shares of profits in contrast with their much lower shares of employees or, to a lesser extent, turnover. These results indicate that while banks are likely shifting their profits to tax havens, even more detailed data would need to be published by banks to facilitate a direct observation of profit shifting.
Journal: Applied Economics
Pages: 5967-5985
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781773
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781773
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5967-5985




Template-Type: ReDIF-Article 1.0
Author-Name: Young Han Bae
Author-X-Name-First: Young Han
Author-X-Name-Last: Bae
Author-Name: Thomas S. Gruca
Author-X-Name-First: Thomas S.
Author-X-Name-Last: Gruca
Author-Name: Hyunwoo Lim
Author-X-Name-First: Hyunwoo
Author-X-Name-Last: Lim
Author-Name: Gary J. Russell
Author-X-Name-First: Gary J.
Author-X-Name-Last: Russell
Title: The size-rank relationship for market shares of consumer packaged goods
Abstract: 
 This study examines the relationship between market share and its rank for a comprehensive set of product categories and subcategories in the U.S consumer packaged goods industry. Based on prior research, we expect that the slope of the market share-rank relationship will be more consistent with the Zipf distribution at the higher levels of aggregation (category-level versus subcategory-level shares). Two alternative model formulations were examined: the size-rank power law and an exponential alternative used in prior research. Model parameters were estimated across categories (and subcategories) using random coefficients for both the slopes and intercepts. The overall slopes for both samples were significantly higher than −1, the slope consistent with the Zipf distribution. However, as expected, we also found that the slope associated with data from the higher level of aggregation (category level) is flatter than that from the lower level of aggregation (subcategory level). We discuss implications of these results for future research on the size-rank relationship.
Journal: Applied Economics
Pages: 5986-5994
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781774
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781774
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5986-5994




Template-Type: ReDIF-Article 1.0
Author-Name: Yuta Ogane
Author-X-Name-First: Yuta
Author-X-Name-Last: Ogane
Title: Who is a good advisor for entrepreneurs?
Abstract: 
 This paper examines the effects of external advice on entrepreneurs’ fundraising and business performance while distinguishing the sources of advice, by using a survey in Japan that includes 3,011 new firms. We find that advice from managers in the same industries contributes to solving entrepreneurs’ fundraising problems not only before startup but also immediately after startup. Their advice also helps increase the amount of external funding which entrepreneurs obtain at the time of startup. We also find that advice from accountants contributes to enhancing new firms’ performance immediately after startup. Their advice also contributes to enhancing their performance after the screening of projects, suggesting that such advice also serves as value-added in terms of the enhancement of new firms’ business performance.
Journal: Applied Economics
Pages: 1-34
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1745746
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745746
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:1-34




Template-Type: ReDIF-Article 1.0
Author-Name: Yuna Heo
Author-X-Name-First: Yuna
Author-X-Name-Last: Heo
Author-Name: Fangfang Hou
Author-X-Name-First: Fangfang
Author-X-Name-Last: Hou
Author-Name: Seongkyu Gilbert Park
Author-X-Name-First: Seongkyu Gilbert
Author-X-Name-Last: Park
Title: Does corruption grease or sand the wheels of investment or innovation? Different effects in advanced and emerging economies
Abstract: 
 We assess different effects of corruption on corporate activities depending on whether a firm operates in an advanced or emerging economy. In emerging economies, greater corruption is related to greater capital expenditures. In advanced economies, greater corruption is positively related to innovation. Further, we find the relationship between corruption and capital exp20enditure (innovation) is moderated by diversification. Our findings suggest that corruption leads firms to take more action in the areas that the economy has a competitive edge in.
Journal: Applied Economics
Pages: 35-60
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1791313
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1791313
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:35-60




Template-Type: ReDIF-Article 1.0
Author-Name: Valentine Jacobs
Author-X-Name-First: Valentine
Author-X-Name-Last: Jacobs
Author-Name: Benoît Mahy
Author-X-Name-First: Benoît
Author-X-Name-Last: Mahy
Author-Name: François Rycx
Author-X-Name-First: François
Author-X-Name-Last: Rycx
Author-Name: Mélanie Volral
Author-X-Name-First: Mélanie
Author-X-Name-Last: Volral
Title: Over-education among immigrants: the role of demographics, time, and firm characteristics
Abstract: 
 This paper puts the nexus between immigration and over-education to an updated test, capitalizing on the authors’ access to rich Belgian matched employer-employee data for the period 1999–2010. These data enable the authors to i) measure over-education with higher precision, ii) examine the heterogeneous effects of workers’ birth countries, and iii) test the role of key moderators. Using ordered probit estimates, the authors highlight that workers born in developing countries (especially in Asia and North Africa) are much more likely to be over-educated than their opposite numbers born in developed countries. However, the results also show that this gap in over-education is entirely driven by tertiary-educated workers. Gender-based differences in immigrants’ penalties, in contrast, are found to be quite modest overall. In line with statistical discrimination, results further show that tenure has a moderating effect on the likelihood for immigrants born in developing countries to be over-educated and that citizenship acquisition is also associated with improved job matches for those immigrants. Finally, regarding the role of firm characteristics, the authors find that the likelihood for immigrants from developing countries to be over-educated is significantly smaller in bigger firms and when working conditions are collectively renegotiated at the firm level.
Journal: Applied Economics
Pages: 61-78
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1795070
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795070
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:61-78




Template-Type: ReDIF-Article 1.0
Author-Name: Stéphane Blancard
Author-X-Name-First: Stéphane
Author-X-Name-Last: Blancard
Author-Name: Maximin Bonnet
Author-X-Name-First: Maximin
Author-X-Name-Last: Bonnet
Author-Name: Jean-François Hoarau
Author-X-Name-First: Jean-François
Author-X-Name-Last: Hoarau
Title: The influence of agriculture on the structural economic vulnerability of small island spaces: Assessment using DEA based composite indicators
Abstract: 
 Small island spaces are confronted with significant disadvantages that ultimately result in strong economic vulnerability. The conventional literature emphasizes the main role of agriculture in generating structural vulnerability. Specifically, the higher the weight of agriculture compared to other sectors is, the more structurally vulnerable an economy is. However, the recent food crises revealed that the economic dependence on agriculture is not a problem on its own, but the issue is rather the efficiency of this sector along with the orientation of domestic production towards diversification and food self-sufficiency. In this paper, we thus propose a new structural economic vulnerability indicator based on the assumption that promoting the local agriculture could boost development. We insert the share of the agriculture sector in the GDP proxied by imported food dependency into the ‘official’ economic vulnerability index. Moreover, for robustness, the proposed indicator is obtained based on an endogenous weighting system derived from data envelopment analysis. Finally, our simulations for a sample of 131 developing economies point out that considering food dependency reduces dramatically the exposure of small island economies to structural vulnerability.
Journal: Applied Economics
Pages: 79-97
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1795071
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795071
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:79-97




Template-Type: ReDIF-Article 1.0
Author-Name: Josephine Dufitinema
Author-X-Name-First: Josephine
Author-X-Name-Last: Dufitinema
Title: Stochastic volatility forecasting of the Finnish housing market
Abstract: 
 The purpose of the article is to assess the in-sample fit and the out-of-sample forecasting performances of four stochastic volatility (SV) models in the Finnish housing market. The competing models are the vanilla SV, the SV model where the latent volatility follows a stationary AR(2) process, the heavy-tailed SV and the SV with leverage effects. The models are estimated using Bayesian technique, and the results reveal that the SV with leverage effects is the best model for modelling the Finnish house price volatility. The heavy-tailed SV model provides accurate out-of-sample volatility forecasts in most of the studied regions. Additionally, the models’ performances are noted to vary across almost all cities and sub-areas, and by apartment types. Moreover, the AR(2) component substantially improves the in-sample fit of the standard SV, but it is unimportant for the out-of-sample forecasting performance. The study outcomes have crucial implications, such as portfolio management and investment decision-making. To establish suitable time-series volatility forecasting models of this housing market, these study outcomes will be compared to the performances of their GARCH models counterparts.
Journal: Applied Economics
Pages: 98-114
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1795074
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795074
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:98-114




Template-Type: ReDIF-Article 1.0
Author-Name: Amirah El-Haddad
Author-X-Name-First: Amirah
Author-X-Name-Last: El-Haddad
Author-Name: May Mokhtar Gadallah
Author-X-Name-First: May Mokhtar
Author-X-Name-Last: Gadallah
Title: The informalization of the Egyptian economy (1998–2012): a driver of growing wage inequality
Abstract: 
 We run recentered influence function (RIF) regressions, using Firpo et al. (2007) distributional approach to identify each control variable’s contribution on the decomposition of wage changes. Using the Egyptian Labour Market Surveys 1998–2012 for waged men we find that wage changes between 1998 and 2012 mainly resulted in increased inequality. The richer percentiles have persistently enjoyed disproportionately larger positive changes in real hourly wages. Whilst increasing in all three wage gaps, inequality increased the most between the top and bottom deciles (90–10 gap), i.e. between the lowest and highest wage earners. This increase in inequality is primarily driven by the unexplained wage structure effect. The distinct labour market segments are foremost responsible for the increased inequality trend. Private sector informality is the largest contributor to increased inequality. The sector does not adhere to a minimum wage, and being unregulated it has responded dramatically to the severe competitive pressures caused by the departing middle classes of the public sector. It suppressed mid and low-end wages resulting in sharp wage gaps at the tails. Public sector wage setting dynamics and the direction of labour movements since liberalization cause the sector to contribute more to wage inequality than does its formal private counterpart.
Journal: Applied Economics
Pages: 115-144
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1796917
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796917
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:115-144




Template-Type: ReDIF-Article 1.0
Author-Name: Jinyong Zhan
Author-X-Name-First: Jinyong
Author-X-Name-Last: Zhan
Author-Name: Jingci Zhu
Author-X-Name-First: Jingci
Author-X-Name-Last: Zhu
Title: The effects of state ownership on innovation: evidence from the state-owned enterprises reform in China
Abstract: 
 With the quasi-natural experiment of state-owned enterprises reform in China, this paper analyzes the relationship between state ownership and innovation. Utilizing difference-in-differences method, this paper estimates the effects of privatization on innovation in terms of R&D expenditure (innovation input), the number of patents, patents for invention (innovation output) and expenditure per patent (innovation efficiency) with Annual Survey of Industrial Enterprises in China over the period of 1998 and 2007. This paper finds that the privatization of state ownership does not significantly raise the R&D expenditure but does increase the innovation output by 2.5% as well as innovation efficiency by 50%. The results are robust to controlling for other types of ownership change and the industry-time disturbances. We also find that state ownership mainly influences firm innovation performance through the channels of increasing wages and financial constraints.
Journal: Applied Economics
Pages: 145-163
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1796918
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796918
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:145-163




Template-Type: ReDIF-Article 1.0
Author-Name: Zied Ftiti
Author-X-Name-First: Zied
Author-X-Name-Last: Ftiti
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Wael Louhichi
Author-X-Name-First: Wael
Author-X-Name-Last: Louhichi
Author-Name: Mohamed El Arbi Madani
Author-X-Name-First: Mohamed El Arbi
Author-X-Name-Last: Madani
Title: Are oil and gas futures markets efficient? A multifractal analysis
Abstract: 
 Energy futures markets have shown high volatility, giving rise to challenges regarding their pricing and efficiency. This study investigates the weak-form efficiency hypothesis for two major energy futures markets (gas and oil) over both calm and crisis periods, using a multifractal approach and intraday data to deal with the flexible econometric framework and rich information. Our results are threefold. First, we show that multifractality in lower frequency might be more biased than in intraday data, which motivates the use of the fractal approach when testing the intraday efficiency. Second, we highlight that high frequency data are characterized by a true long memory with a higher degree of persistence during the post-crisis period for the oil market. However, for lower frequencies, the long memory becomes spurious for both markets. Finally, our forecasting results show that, for the oil market, the proposed multifractal approach outperforms conventional methodologies, especially during turmoil periods.
Journal: Applied Economics
Pages: 164-184
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1801984
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1801984
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:164-184




Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Aleksei Egorov
Author-X-Name-First: Aleksei
Author-X-Name-Last: Egorov
Author-Name: Margarita Maximova
Author-X-Name-First: Margarita
Author-X-Name-Last: Maximova
Title: Do merger policies increase universities’ efficiency? Evidence from a fuzzy regression discontinuity design
Abstract: 
 This paper focuses on the effect of merger policies in Russia on universities’ efficiency. We consider one particular policy of non-voluntary mergers conducted by the Ministry of education based on universities’ performance indicators. In a first stage, efficiency scores of universities are estimated using a bootstrapped DEA non-parametric technique. The efficiency scores were evaluated for universities that were merged and for an appropriate control group formed through a propensity score matching approach before and after implemented policy. Then, a fuzzy regression discontinuity design is implemented in order to reveal the causal impact of mergers on efficiency level. We find positive, statistically significant effect of merger policy on universities’ efficiency. The results of the analysis suggest that merged universities experienced greater efficiency gains (smaller efficiency declines) after the merger was implemented.
Journal: Applied Economics
Pages: 185-204
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1803488
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1803488
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:185-204




Template-Type: ReDIF-Article 1.0
Author-Name: Francisco A. Gallego
Author-X-Name-First: Francisco A.
Author-X-Name-Last: Gallego
Author-Name: Cesar Huaroto
Author-X-Name-First: Cesar
Author-X-Name-Last: Huaroto
Author-Name: Cristóbal Otero
Author-X-Name-First: Cristóbal
Author-X-Name-Last: Otero
Author-Name: Alejandro Sáenz
Author-X-Name-First: Alejandro
Author-X-Name-Last: Sáenz
Title: National institutions and regional development at borders: evidence from the Americas
Abstract: 
 This paper explores how discontinuities created by national borders can influence development across the Americas. We exploit the discontinuous nature of borders jointly with exogenous variation at the national level to identify discontinuous effects on proxies for economic development at the regional and pixel levels. We separate the effects of national institutions from local historical conditions. Our analysis yields three main findings. First, we find important discontinuities in development across national borders for the Americas. Second, we also show that they are, for the most part, caused by institutional differences at the national level and not for differences at the regional level in geography, climate, endowments, and pre-colonization conditions. Third, we also present evidence that differences in national institutions affect human capital at the regional level.
Journal: Applied Economics
Pages: 205-220
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1804048
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1804048
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:205-220




Template-Type: ReDIF-Article 1.0
Author-Name: Ping Zou
Author-X-Name-First: Ping
Author-X-Name-Last: Zou
Title: Too little or too much? The dynamic adjustment of corporate philanthropy
Abstract: 
 Previous studies in corporate philanthropy have not found conclusive evidence of specific decision-making processes applied by firms to establish a target level of charitable giving. Using panel data of Chinese firms listed on the Shenzhen and Shanghai stock exchanges between 2009 and 2016,we find that the level of corporate charitable giving and financial performance has an inverted U-type relationship, which implies that maintaining an appropriate level of charitable giving can contribute to maximizing financial performance. This result is robust to the inclusion of various control variables, and control for endogeneity and reverse causality using two-stage least squares. Based on this premise, using partial adjustment model, we find that firms dynamically adjust their charitable giving to a set optimal level. Furthermore, we find that the actual and optimal levels of charitable giving change due to the dynamic nature of the business environment and the costs associated with the adjustment to change. Further analysis shows that privately owned firms can adjust their level of charitable giving faster than state-owned firms. Our study contributes to research by applying a unique method that provides a new perspective on the process of corporate philanthropy decision-making and guides firms in philanthropy engagement.
Journal: Applied Economics
Pages: 221-234
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1804049
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1804049
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:221-234




Template-Type: ReDIF-Article 1.0
Author-Name: Thai-Ha Le
Author-X-Name-First: Thai-Ha
Author-X-Name-Last: Le
Author-Name: Canh Phuc Nguyen
Author-X-Name-First: Canh Phuc
Author-X-Name-Last: Nguyen
Title: The impact of tourism on carbon dioxide emissions: insights from 95 countries
Abstract: 
 Tourism development seems to have mixed effects on the level of CO2 emissions across the globe. This study thus provides international evidence on the impacts of tourism on carbon dioxide emissions in countries of arrival. We employ alarge panel of 95 countries, consisting of three subsamples of countries classified by income level over the period 1998–2014. The theoretical framework of this study is built based on an extended version of STIRPAT model combined with the EKC. The empirical results are following: (i) tourism (receipts and number of arrivals) reduces total CO2 emissions and CO2 emission from electricity and heat production in the countries of arrival; (ii) tourism increases CO2 emissions from transport, while the number of tourist arrivals increases CO2 emissions per capita; and (iii) The effects of tourism on emissions vary across different income levels. At the global level, tourism appears to increase CO2 emissions from transportation, suggesting that special attention should be paid to supporting green transportation infrastructure technologies and practices in the tourism industry. Overall, there is room for improvement in tourism management in countries of all income levels to promote the development of low-carbon tourism products and services.
Journal: Applied Economics
Pages: 235-261
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1804051
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1804051
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:235-261




Template-Type: ReDIF-Article 1.0
Author-Name: Gilles Dufrénot
Author-X-Name-First: Gilles
Author-X-Name-Last: Dufrénot
Author-Name: Jean-Baptiste Gossé
Author-X-Name-First: Jean-Baptiste
Author-X-Name-Last: Gossé
Author-Name: Caroline Clerc
Author-X-Name-First: Caroline
Author-X-Name-Last: Clerc
Title: Risk sharing in Europe: new empirical evidence on the capital markets channel
Abstract: 
 This paper assesses the effectiveness of risk sharing mechanisms in Europe by breaking down the factor income components into their sub-components, and aims to further examine whether financial integration and international portfolio diversification boosts or dampens risk sharing. Using a panel of European countries, we compare the years before and after the 2008 financial crisis. We extend the literature by properly taking into account the heterogeneity (in both country and time dimensions) in the panel through new econometric models. Our results show that financial income has become a major channel of risk sharing in recent years and that a higher integration in the bond and equity markets significantly improves risk sharing in the long term.
Journal: Applied Economics
Pages: 262-276
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1804052
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1804052
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:262-276




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Sochirca
Author-X-Name-First: Elena
Author-X-Name-Last: Sochirca
Author-Name: Francisco José Veiga
Author-X-Name-First: Francisco José
Author-X-Name-Last: Veiga
Title: Key determinants of elite rivalry: theoretical insights and empirical evidence
Abstract: 
 The purpose of this study is to empirically examine the key determinants of elite rivalry and identify their main channels of transmission, contributing to the sparse literature on the topic. Our results show that income level, human capital and the system of checks and balances are strong positive determinants of elite rivalry, while natural resources rents and colonization experience are strong negative determinants. This implies that higher education and income per capita levels and a more efficient separation of powers contribute to reduce elite rivalry, while past colonization experience and higher natural resources rents contribute to aggravate it. As regards transmission channels, about 60% of the determining factors’ overall effect on elite rivalry is transmitted through the legal system and property rights and the political risk channels. Our empirical findings indicate that more efficient institutional models and specific historical and economic factors, can in fact determine the level of elite rivalry in the long run.
Journal: Applied Economics
Pages: 277-291
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1805099
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1805099
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:277-291




Template-Type: ReDIF-Article 1.0
Author-Name: Francisca Pacheco
Author-X-Name-First: Francisca
Author-X-Name-Last: Pacheco
Author-Name: Rafael Sánchez
Author-X-Name-First: Rafael
Author-X-Name-Last: Sánchez
Author-Name: Mauricio G. Villena
Author-X-Name-First: Mauricio G.
Author-X-Name-Last: Villena
Title: Estimating local government efficiency using a panel data parametric approach: the case of Chilean municipalities
Abstract: 
 Previous empirical evidence on municipal efficiency mostly uses cross-sectional data which makes it impossible to separate unobserved heterogeneity from inefficiency. Furthermore, they also typically use a two-stage approach which has been widely criticized as the assumptions in the first stage are violated in the second stage, generating biased results. We contribute to the literature by putting forward a one stage approach with parametric models and panel data to estimate municipal efficiency of 324 Chilean municipalities for the period 2008–2018. We take into account observed and unobserved heterogeneity, incorporating them both into the frontier and jointly estimating efficiency of all the municipalities in the sample. Our results suggest that Chilean municipalities have a relevant degree of inefficiency as they could achieve the same provision of services with 53% −61% less resources, depending on the specification, and that there is large heterogeneity in their level of efficiency. Finally, we also find that municipalities with a high dependency on the Municipal Common Fund are less efficient supporting the notion of local governments fiscal laziness present in the literature …
Journal: Applied Economics
Pages: 292-314
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808171
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808171
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:292-314




Template-Type: ReDIF-Article 1.0
Author-Name: Jerrod Penn
Author-X-Name-First: Jerrod
Author-X-Name-Last: Penn
Author-Name: Wuyang Hu
Author-X-Name-First: Wuyang
Author-X-Name-Last: Hu
Title: Mitigating hypothetical bias by defaulting to opt-out in an online choice
Abstract: 
 Hypothetical Bias (HB) is an ongoing concern for welfare estimates generated from stated preference approaches. Employing a default option has been shown to affect decision-making and outcomes in a variety of settings. We implement a split-sample design to study the effect of setting the opt-out alternative as a default choice in a Choice Experiment. Our results show that making the opt-out a default significantly decreases the willingness to pay for attributes, indicative of the presence and mitigation of potential HB. Defaulting to the opt-out alternative also causes considerable shifts in the rank of value among the attributes. This study is conducted in the context of proactive protection against bed bugs, an understudied but vexing issue to resource and recreation management as well as to the broader hospitality industry.
Journal: Applied Economics
Pages: 315-328
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808172
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808172
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:315-328




Template-Type: ReDIF-Article 1.0
Author-Name: Yurong Zhao
Author-X-Name-First: Yurong
Author-X-Name-Last: Zhao
Author-Name: Yingying Zhang
Author-X-Name-First: Yingying
Author-X-Name-Last: Zhang
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: Quantifying international oil price shocks on renewable energy development in China
Abstract: 
 It is a common belief that renewable energy is an effective alternative to traditional fossil energy, namely, oil; thus, an international oil price shock is a significant factor affecting renewable energy development. This paper builds a recursive dynamic computable general equilibrium model to explore the effects of rise and fall in international oil price on the investment and outputs of renewable energy industry, as well as the macroeconomy and environment in China. In addition, the role of renewable energy policy is verified through simulating the combination scenario of oil price fluctuation and renewable energy policy. The results reveal that an increasing international oil price can advance the outputs and investment of renewable energy, decrease China’s real GDP and exports, and improve the atmosphere environment, and the influence of a decreasing international oil price is the opposite. Furthermore, renewable energy policy can attenuate the negative effect of a decreasing oil price on renewable energy development and the environment, and strengthen its contribution to GDP.
Journal: Applied Economics
Pages: 329-344
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808173
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808173
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:329-344




Template-Type: ReDIF-Article 1.0
Author-Name: Noha Emara
Author-X-Name-First: Noha
Author-X-Name-Last: Emara
Author-Name: Hicran Kasa
Author-X-Name-First: Hicran
Author-X-Name-Last: Kasa
Title: The non-linear relationship between financial access and domestic savings: the case of emerging markets
Abstract: 
 This paper examines the impact of financial access on the accumulation of domestic savings in emerging markets (EMs) covering countries from Latin America, Europe, Middle East, and Africa (EMEA), and Asia as classified by the Morgan Stanley Capital International (MSCI) index. We use the System Generalized Method of Moments panel estimation methodology on annual data spanning the period 1980-2018. Principal component analysis allows us to create a financial access index as a linear combination of two variables measured per 100,000 adults: number of bank branches per and number of ATMs.The results of the paper reveal a statistically significant nonlinear relationship between the improvement in financial access measures and the accumulation of domestic savings with a definite threshold level. More specifically, our results for the full sample indicate that improvement in financial access may initially increase the savings rateleading to an increase in savings. Nevertheless, once the financial access index reaches its threshold level further improvement in financial access tends decrease households’ precautionary savings and to give rise to a decline in savings. Thus, the duality of the pattern highlights the non-linearity of financial access and domestic savings.
Journal: Applied Economics
Pages: 345-363
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808174
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808174
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:345-363




Template-Type: ReDIF-Article 1.0
Author-Name: Kaustav Misra
Author-X-Name-First: Kaustav
Author-X-Name-Last: Misra
Author-Name: Paul W. Grimes
Author-X-Name-First: Paul W.
Author-X-Name-Last: Grimes
Author-Name: Kevin E. Rogers
Author-X-Name-First: Kevin E.
Author-X-Name-Last: Rogers
Title: Private competition and market characteristics: evidence from public school efficiency
Abstract: 
 The traditional market structure paradigm does not fully identify all components that determine the true degree and complexity of a market’s existing competition. Recently, researchers have redefined market structures and market competition using geographic spatial tools We follow this approach in developing a school competition index (SCI) for the state of Mississippi to define the K-12 market and to measure the competition public schools face from private schools. We separate religious private schools from non-religious private schools as an important market characteristic and create two variables to capture the degree of competition each public school faces from peer religious and non-religious private schools spatially located within their local market area. Results from two-stage stochastic frontier analysis indicate that private schools with a religious affiliation significantly increase public schools’ performance. The results also suggest that students’ race and their socio-economic standard significantly reduce public school efficiency. We conclude that policymakers should consider competition-based school reform policies to increase public school outcomes.
Journal: Applied Economics
Pages: 364-379
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808175
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808175
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:364-379




Template-Type: ReDIF-Article 1.0
Author-Name: Fadia Al Hajj
Author-X-Name-First: Fadia
Author-X-Name-Last: Al Hajj
Author-Name: Gilles Dufrénot
Author-X-Name-First: Gilles
Author-X-Name-Last: Dufrénot
Author-Name: Benjamin Keddad
Author-X-Name-First: Benjamin
Author-X-Name-Last: Keddad
Title: Exchange rate policy and external vulnerabilities in Sub-Saharan Africa: nominal, real or mixed targeting?
Abstract: 
 This paper discusses the theoretical choice of exchange rate regimes in Sub-Saharan African countries that are facing external vulnerabilities. To reduce instability, policymakers choose among promoting external competitiveness using a real anchor, lowering the burden of foreign debt using a nominal anchor or using a policy mix of both anchors. We observe that these countries tend to adopt mixed anchor policies. We solve a state space model to explain the determinants of and the strategy behind this policy. We find that the mixed targeting policy is a two-step strategy: First, monetary authorities choose the degree of nominal exchange rate flexibility according to the velocity of money, trade openness, foreign debt, degree of exchange rate pass-through and exchange rate target zone. Second, authorities seek to stabilize the real exchange rate depending on the degree of competition in the domestic goods market and the degree of foreign exchange intervention. We conclude with regime-switching estimations to provide empirical evidence of how these economic fundamentals influence exchange rate policy in Sub-Saharan Africa.
Journal: Applied Economics
Pages: 380-399
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808176
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808176
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:380-399




Template-Type: ReDIF-Article 1.0
Author-Name: Carla Fernandes
Author-X-Name-First: Carla
Author-X-Name-Last: Fernandes
Author-Name: Maria Rosa Borges
Author-X-Name-First: Maria Rosa
Author-X-Name-Last: Borges
Author-Name: Jorge Caiado
Author-X-Name-First: Jorge
Author-X-Name-Last: Caiado
Title: The contribution of digital financial services to financial inclusion in Mozambique: an ARDL model approach
Abstract: 
 This paper analyses the contribution of digital financial services to financial inclusion in Mozambique, based on the Autoregressive Distributed Lag (ARDL) model, for the period from January 2011 to September 2019. We study two models to analyse the contribution of digital financial services to financial inclusion (measured by the number of bank accounts) in Mozambique. The first model uses traditional digital means of payments as independent variables, such as the volume of financial transactions through automated teller machines (ATMs), point-of-sales (POSs), electronic transfers of inter and intrabank funds, direct debit, and domestic and cross-border remittances. The second model considers innovative digital means of payments, such as internet banking, mobile banking and electronic money. We conclude that, excluding domestic remittances and direct debit, which present low levels of penetration in the country, and internet banking transactions, the remaining variables contribute to financial inclusion. Our results confirm the crucial role that digital financial services play in financial inclusion, particularly in improving access to and the use of services by the under-served population.
Journal: Applied Economics
Pages: 400-409
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808177
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808177
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:400-409




Template-Type: ReDIF-Article 1.0
Author-Name: Seyyed Ali Zeytoon Nejad Moosavian
Author-X-Name-First: Seyyed Ali
Author-X-Name-Last: Zeytoon Nejad Moosavian
Author-Name: Barry K. Goodwin
Author-X-Name-First: Barry K.
Author-X-Name-Last: Goodwin
Title: Flexible modelling of multivariate risks in pricing margin protection insurance: modelling portfolio risks with mixtures of mixtures
Abstract: 
 Margin Protection Programs (MPPs) are relatively new insurance plans, introduced by USDA’s Risk Management Agency (RMA). The attractiveness of these risk management instruments lies in the fact that the financial stability of agricultural production and farming operations is more dependent on margins than solely revenues, which neglect production costs, as is the case for Revenue Protection Programs (RPPs). This article examines the structure and rating of margin protection insurance policies by considering a broad class of high-dimensional copula models that parameterize the dependence among multivariate sources of risks. A variety of copula methods, including Archimedean Copulas (ACs), Mixture Copulas (MCs), and Vine Copulas (VCs) are used to analyse the dependence structure between revenues and input costs. In terms of methodology, flexible mixtures of parametric distributions are applied to characterize marginal densities, and likewise flexible mixtures of alternative copulas are used to model dependence. This article also argues that the rating methodology that accounts for irregular and anomalous features of dependence such as asymmetry, non-linearity, non-ellipticity, and tail dependence between input prices and output prices can result in more accurate premiums, and therefore, can increase the hedging effectiveness of the MPPs and the market efficiency in the US crop insurance market.
Journal: Applied Economics
Pages: 411-440
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808170
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808170
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:411-440




Template-Type: ReDIF-Article 1.0
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Author-Name: Muhammad Azeem Qureshi
Author-X-Name-First: Muhammad Azeem
Author-X-Name-Last: Qureshi
Title: The nexus between policy uncertainty, sustainability disclosure and firm performance
Abstract: 
 Policy uncertainty (PU), and sustainability disclosure, influence the performance of the firms. We use European data to extend the nascent literature on sustainability disclosure, and economic policy uncertainty by investigating the moderating impact of sustainability disclosure on the relationship between economic policy uncertainty and firm performance. We find overwhelming evidence that policy uncertainty reduces firm performance; however, sustainability disclosure moderates this destructing impact of policy uncertainty on firm performance. Our results show that environmental and social disclosure by the European firms enhances their reputation and help these firms in reducing the policy-induced uncertainty. A higher governance disclosure representing efficient corporate governance also help European firms to moderate the negative effect of policy uncertainty on their performance. Our results are robust to alternate proxies of firm performance as well as endogeneity issues.
Journal: Applied Economics
Pages: 441-453
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808178
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808178
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:441-453




Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Hsien Chuang
Author-X-Name-First: Shih-Hsien
Author-X-Name-Last: Chuang
Title: Aviation taxation and tax incidence
Abstract: 
 This paper investigates tax incidence resulting from the ‘combined unit tax’ levied on domestic air travel. Using a panel dataset and estimating with first-differences, I find that domestic aviation taxes are over-shifted to passengers by 30–70 cents per dollar tax. A potential nonlinear relationship between tax and fare changes is detected. The results are essential to future studies on tax salience. Seasonal effects are the most pronounced in periods with high demand. I extend the literature by providing fresh evidence of tax incidence in the airline industry and complementing the over-shifting results found in other industries.
Journal: Applied Economics
Pages: 454-468
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808179
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808179
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:454-468




Template-Type: ReDIF-Article 1.0
Author-Name: Sok Chul Hong
Author-X-Name-First: Sok Chul
Author-X-Name-Last: Hong
Author-Name: Dongyoung Kim
Author-X-Name-First: Dongyoung
Author-X-Name-Last: Kim
Author-Name: Eutteum Lee
Author-X-Name-First: Eutteum
Author-X-Name-Last: Lee
Title: The long-term human toll of natural disasters: a study of fetal exposure to the 1974 Tornado super outbreak
Abstract: 
 This study investigates the long-term effect of fetal exposure to the 1974 Tornado Super Outbreak. Using the 2008–2017 American Community Survey and a difference-in-differences framework, we estimate the adverse effects of this stressful in-utero shock on health and socioeconomic outcomes in adulthood. The effects explain 7% of the average probability of having at least one physical/cognitive difficulty and are robust to selection and migration issues. We find weaker effects on adulthood socioeconomic status and birth outcomes. The weaker effects on adulthood socioeconomic outcomes are because of complementing parental behaviours. We suggest maternal stress and fear as a key mechanism. Our estimate implies that the annual earned income loss from disaster-driven health problems was $72 million in 2017. Our findings suggest that the adverse impacts on late outcomes might be largely caused by maternal stress due to the unpredictability of the Tornado Super Outbreak. (JEL I15, O10, Q54)
Journal: Applied Economics
Pages: 469-481
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808181
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808181
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:469-481




Template-Type: ReDIF-Article 1.0
Author-Name: Yen-Chen Chiu
Author-X-Name-First: Yen-Chen
Author-X-Name-Last: Chiu
Author-Name: I-Yuan Chuang
Author-X-Name-First: I-Yuan
Author-X-Name-Last: Chuang
Title: Unconditional density vs conditional density functions in estimating value-at-risk
Abstract: 
 This research compares the performance of 10 Value-at-Risk (VaR) models, including pure density models (student’s t, mixture of normal, double gamma, kernel, and GPD) and conditional density models (GARCH-student’s t, GARCH-mixture of normal, GARCH-double gamma, GARCH-kernel, and GARCH-GPD). We employ these models and test their performance in Asian markets, including over the 2008 financial crisis period. Findings show that the density functions used in conjunction with the GARCH models are capable of capturing the high peak, fat-tails, and volatility clustering of returns and can improve the accuracy of VaR forecasts. Furthermore, the proposed GARCH-double gamma provides the best fit for all tested Asian markets, both developed and emerging markets, and for foreign exchange rates markets.
Journal: Applied Economics
Pages: 482-494
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808182
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808182
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:482-494




Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Li
Author-X-Name-First: Xuelian
Author-X-Name-Last: Li
Author-Name: Yuxin Xie
Author-X-Name-First: Yuxin
Author-X-Name-Last: Xie
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: COVID-19 outbreak, government capital injections, and shadow banking efficiency
Abstract: 
 This paper investigates the effects of the novel coronavirus (COVID-19) outbreak and government capital injections on the bank’s optimal interest margin and the efficiency gain/loss from the shadow banking operations. The down-and-out call option approach is adapted to model the structural break in volatility to capture the COVID-19 outbreak. Results show that the COVID-19 outbreak reduces the optimal bank interest margin, government capital injections enhance the margin, and both the outbreak and capital injections harm the efficiency gain from shadow banking. COVID-19, as such, makes the bank more prone to risk-taking, thereby adversely affecting banking stability.
Journal: Applied Economics
Pages: 495-505
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808183
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808183
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:495-505




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Sun Young Hwang
Author-X-Name-First: Sun Young
Author-X-Name-Last: Hwang
Title: Functional ARCH directional dependence via copula for intraday volatility from high-frequency financial time series
Abstract: 
 This paper proposes a copula directional dependence by using a bivariate Gaussian copula beta regression with the functional ARCH(1) (fARCH) model to suit high-frequency time series that account for intraday volatilities. With simulated high-frequency data, we show how the copula fARCH directional dependence of intraday volatility can be useful in terms of graphical displays for tick-by-tick price changes in a day. We can perform a test of significance of the copula fARCH directional dependence of intraday volatility by the permutation test, p-value, and bootstrapping confidence interval. To validate our proposed method with real data, we use the Korea Composite Stock Price Index (KOSPI) and the Hyundai-Motor (HD-Motor) company stock data with one minute high-frequency. We show that copula fARCH directional dependence of intraday volatility by B-spline basis function is superior to that by Fourier basis function in terms of the per cent relative efficiency of bias and mean squared error. This research shows that the copula functional ARCH directional dependence of intraday volatility can be an important statistical method to illustrate the directional dependence of intraday volatility in the financial market.
Journal: Applied Economics
Pages: 506-520
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808184
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808184
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:506-520




Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Biscione
Author-X-Name-First: Antonella
Author-X-Name-Last: Biscione
Author-Name: Raul Caruso
Author-X-Name-First: Raul
Author-X-Name-Last: Caruso
Author-Name: Annunziata de Felice
Author-X-Name-First: Annunziata
Author-X-Name-Last: de Felice
Title: Environmental innovation in European transition countries
Abstract: 
 The aim of this paper is to highlight the determinants of environmental innovation of manufacturing firms in European Transition countries. Following an established literature, the analysis relies upon data drawn from the Community Innovation Survey - CIS14 . The data are cross-section covering the period between 2012 and 2014. We employ a multivariate probit model to observe the effect of several drivers on eco-innovation, captured by: (i) eco-product; (ii) eco-process; (iii) eco-organization. Findings highlight that regulation influences all measures of eco-innovation. The results are confirmed also when we perform alternative estimations. It is worth noting that – after interacting expected regulation and turnover – expected regulation has an impact on the current decision on eco-innovation if and only if the firms have a large turnover. Another interaction term between turnover and tax rates is positively associated with eco-innovation, so suggesting that when tax rate appears to be too high, firms prefer to invest in environmental innovation rather than being taxed.
Journal: Applied Economics
Pages: 521-535
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808185
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808185
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:521-535




Template-Type: ReDIF-Article 1.0
Author-Name: Sun-Ki Choi
Author-X-Name-First: Sun-Ki
Author-X-Name-Last: Choi
Author-Name: John Garen
Author-X-Name-First: John
Author-X-Name-Last: Garen
Title: The federal-private wage differential: how has it evolved?
Abstract: 
 This paper is the first to document and analyse the variation of the federal-private pay differential over time. We estimate the evolution of the federal-private pay differential from 1995 to 2017 using Current Population Survey data, enabling us to examine the current pay gap and how it has changed. To do so, wage regressions are estimated by year and used to calculate the yearly federal-private wage differential. To deal with unobserved heterogeneity, we adopt control function methods. We also estimate the probability of receiving employer-provided health insurance and a pension plan each year for each sector. The findings imply that the federal pay differential is invariably positive, but has varied substantially. We examine the reasons for this variation and find that the most robust result is the positive effect of federal spending as a share of GDP, ipromplying that a 1 percentage point increase in federal spending as a share of GDP raises the federal pay differential by 1.3 to 1.75 percentage points.
Journal: Applied Economics
Pages: 536-554
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808572
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808572
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:536-554




Template-Type: ReDIF-Article 1.0
Author-Name: Simona Bigerna
Author-X-Name-First: Simona
Author-X-Name-Last: Bigerna
Author-Name: Carlo Andrea Bollino
Author-X-Name-First: Carlo Andrea
Author-X-Name-Last: Bollino
Author-Name: Philipp Galkin
Author-X-Name-First: Philipp
Author-X-Name-Last: Galkin
Title: Balancing energy security priorities: portfolio optimization approach to oil imports
Abstract: 
 The notion of energy security in most interpretations includes the physical supply and price affordability components, making financial risks a crucial part of energy security strategies. Mainstream analysis has focussed on the notion of the physical supply. This paper introduces a novel approach, considering simultaneously the quantity of oil imports and the risk associated with this quantity. This approach applies the financial portfolio theory to explore these issues from the perspective of four major Asian energy importers: China, Japan, Korea and Taiwan, by estimating efficient frontiers for corresponding oil import portfolios. Results show that the composition of oil import portfolios determines varying risk levels for given oil import growth rates and average import prices. Scenario analysis suggests that increasing the Saudi Arabia share of oil imports improves the portfolio performance of China and that the impact of the Iranian oil export embargo would increase portfolio risk of the economies in focus within a 3–15% range.
Journal: Applied Economics
Pages: 555-574
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808573
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808573
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:555-574




Template-Type: ReDIF-Article 1.0
Author-Name: Keehwan Park
Author-X-Name-First: Keehwan
Author-X-Name-Last: Park
Author-Name: Zhongzheng Fang
Author-X-Name-First: Zhongzheng
Author-X-Name-Last: Fang
Title: Fractional non-diversifiable risk and stock market returns
Abstract: 
 This article introduces a new risk metric of stock returns. It measures the fraction of the non-diversifiable risk relative to the individual risk of a typical stock in the stock market and is shown to be closely related to average correlation between individual stocks. Using the Korean stock market data, we show that the fractional non-diversifiable risk varies over time, and in particular, sharply rises during the financial crisis periods. We find that the relation between risk and return at the aggregate level is negative contemporaneously, but positive with a time lag. As a robustness check, we extend our analysis to the U.S. and the U.K. markets. Our results shed light on resolving the conflicting risk and return relations reported in the literature.
Journal: Applied Economics
Pages: 575-594
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808574
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808574
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:575-594




Template-Type: ReDIF-Article 1.0
Author-Name: Yang Jiao
Author-X-Name-First: Yang
Author-X-Name-Last: Jiao
Author-Name: Yixuan Li
Author-X-Name-First: Yixuan
Author-X-Name-Last: Li
Author-Name: Mengdi Liu
Author-X-Name-First: Mengdi
Author-X-Name-Last: Liu
Title: Widening the Gap? Temperature and Time Allocation between Men and Women
Abstract: 
 Gender differences in time use have been documented in the literature, but knowledge about the nature of such gender gaps remains limited. This study aims to examine whether changes in temperature, affect gender differentials in time allocation and the potential mechanisms through which the responses might operate. Based on the time use survey data, we find that, relative to men, women decrease their labour supply by approximately one hour during days with extremely high temperatures, despite having fewer working hours than men over the entire distribution of temperature. However, gender differentials in the time allocated to housework and leisure change little with temperature. Our further investigation indicates a substantial part of the gender gap can be explained by gender disparity in family responsibilities due to marriage and parenthood. The gender gap in supply to the market work is more pronounced for those with young children.
Journal: Applied Economics
Pages: 595-627
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808575
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808575
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:595-627




Template-Type: ReDIF-Article 1.0
Author-Name: Jiawen Luo
Author-X-Name-First: Jiawen
Author-X-Name-Last: Luo
Author-Name: Qun Zhang
Author-X-Name-First: Qun
Author-X-Name-Last: Zhang
Title: Risk contagions between global oil markets and China’s agricultural commodity markets under structural breaks
Abstract: 
 This article investigates the linear and non-linear dependence structures of risk contagions between global crude oil futures markets and China’s agricultural futures markets based on a regime switching skew-normal (RSSN) model. We examine the oil-agriculture relationships and identify the contagion channels under the calm and turbulent oil market conditions. The directions of contagions are further identified with the directed acyclic graph (DAG) from the linear non-Gaussian acyclic models algorithm. The empirical results of contagions tests show the significance of correlation and covariance contagions across the oil and agriculture futures returns, especially under the turbulent oil market condition. The breaks in the variances through the moment-based break tests are found to be most significant, followed by the mean and skewness breaks. In addition, the DAG results support the volatility contagions from world oil future markets to China’s agricultural commodity futures markets. Our empirical results have important policy implications for the government to take effective measures to stabilize China’s commodity market and promote the development of alternative energy in China, as well as for market participants to best manage the market risks.
Journal: Applied Economics
Pages: 628-649
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808577
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808577
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:628-649




Template-Type: ReDIF-Article 1.0
Author-Name: Shahina Amin
Author-X-Name-First: Shahina
Author-X-Name-Last: Amin
Author-Name: Bulent Uyar
Author-X-Name-First: Bulent
Author-X-Name-Last: Uyar
Title: Pay gap between foreign-born and native-born doctors in the United States
Abstract: 
 Foreign-born doctors are an integral part of the U.S. labour market for doctors. About 29% of physicians, 24% of dentists, 16% of optometrists and 11% of podiatrists are not born in the United States. This study investigates whether, on average, there is a difference between the earnings of foreign-born doctors and their native-born counterparts, all else equal. The American Community Survey Data from 2006 to 2017 and two measures of doctors’ earnings: wage (and salary) income and total income (includes wages/salaries, business, investment income, etc.) are used. The results indicate that all else constant, all foreign-born doctors earn significantly (p < 0.01) less wage than native-born doctors for the first 5 years of their stay in the U.S. The wage gap decreases with their length of stay in the U.S. After 10 years of stay, foreign-born male doctors start to earn significantly more than their native-born counterparts (p < 0.05). However, when total income is considered, all foreign-born doctors earn significantly (p < 0.01) less than their native-born counterparts for up to 20 years of stay in the U.S. The magnitude of the total income gap is larger than that of the wage gap. All results remain robust even after ability is controlled for.
Journal: Applied Economics
Pages: 650-662
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808578
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808578
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:650-662




Template-Type: ReDIF-Article 1.0
Author-Name: Jung K. Kim
Author-X-Name-First: Jung K.
Author-X-Name-Last: Kim
Author-Name: Yumi Koh
Author-X-Name-First: Yumi
Author-X-Name-Last: Koh
Title: Pretrial justice reform and property crime: evidence from New Jersey
Abstract: 
 Several states and localities have begun to implement various forms of pretrial justice reforms aimed at reducing the size of pretrial detainee population. However, empirical investigation of the effect of such reforms on crimes more broadly (other than recidivism) is limited. We analyse the effect of the 2017 New Jersey Criminal Justice Reform on property crimes. We find that property crime per 100,000 population increased by 22.5% within the first two years. Our findings suggest that reducing the likelihood of pretrial detention for less violent crimes can have substantial impact on behavioural incentives for offenders of such crimes.
Journal: Applied Economics
Pages: 663-675
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1808579
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808579
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:663-675




Template-Type: ReDIF-Article 1.0
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Author-Name: WeiYa Long
Author-X-Name-First: WeiYa
Author-X-Name-Last: Long
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Title: Manufacturing R&D investment efficiency and financing constraints: evidence from China
Abstract: 
 Enhancing the level of Research and Development (R&D) investment by China’s manufacturing enterprises and thus improving their independent innovation capabilities are the core to enhance the country’s industrial competitiveness. This research thus explores the threshold effect of financing constraints on manufacturing R&D investment from the perspective of financing constraints which impact such investment. We first define the related concepts of financing constraints and R&D investment and then discuss the theoretical basis for forming those constraints. The research data sample covers 68 A-share listed manufacturing companies from 2007 to 2016, and we apply the panel threshold model to conduct empirical research. The results show that financing constraints have a negative impact on the R&D investment of listed manufacturing companies, and that there is a non-linear relationship between threshold effects. When the asset-liability ratio is less than or equal to 0.4142, the financing constraint has a small negative impact on the R&D investment of these firms; when the asset-liability ratio is greater than 0.4142, the financing constraint has a greater negative impact on their R&D investment. Based on the findings, we propose relevant policy recommendations.
Journal: Applied Economics
Pages: 676-687
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1808580
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808580
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:676-687




Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Lin
Author-X-Name-First: Qiang
Author-X-Name-Last: Lin
Author-Name: Beibei Qiao
Author-X-Name-First: Beibei
Author-X-Name-Last: Qiao
Title: The relationship between trade credit and bank loans under economic fluctuations - based on the perspective of the supply chain
Abstract: 
 Bank loans and trade credit (B&T) are the most important short-term loan sources for enterprises. Therefore, it is important to study the relationship between them and whether this relationship is affected by some factors. This paper uses the panel data of all A-share listed companies in China from 2000 to 2018 to study the relationship between B&T, as well as the impact of economic fluctuations, profits, status and ownership on this relationship. Several findings are noted. First, there is a complementary relationship and this relationship is affected by economic fluctuations, profits, status and ownership. Second, economic fluctuations, profit, status and ownership have a negative impact on the relationship between B&T. The complementary effects will weaken under the image of economic fluctuations, profit, status, and ownership. Finally, economic fluctuations, profit, status and ownership have a greater impact on the relationship between bank loans and accounts payable than on bank loans and accounts receivable.
Journal: Applied Economics
Pages: 688-702
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1809632
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1809632
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:688-702




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Marmora
Author-X-Name-First: Paul
Author-X-Name-Last: Marmora
Author-Name: Brenden J. Mason
Author-X-Name-First: Brenden J.
Author-X-Name-Last: Mason
Title: Does the shadow economy mitigate the effect of cashless payment technology on currency demand? dynamic panel evidence
Abstract: 
 Recent government attempts at reducing currency demand by promoting cashless payment technology, e.g., subsidies for point-of-sale terminals, have met with mixed success. In this paper, we argue that one reason is the shadow economy: as the size of the unrecorded economy grows, cashless payment technology has a weaker effect on the demand for cash. To test this hypothesis, we analyse a panel of 37 countries over the years 2004–2014 including data on point-of-sale terminals, financial cards in circulation, and the value of total card payments. Using the first principal component of these variables as a proxy for cashless payment technology, we find that a 1% increase in underground activity lowers the impact of cashless technology on the velocity of currency in circulation by 0.3%. This decrease is large enough that the average marginal effect of cashless technology on currency velocity is statistically insignificant for several high-shadow countries over the sample period. Overall, our results suggest that government subsidization of digital payment infrastructure will be ineffective when shadow markets are prevalent.
Journal: Applied Economics
Pages: 703-718
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1813246
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1813246
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:703-718




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Enrique Escalante
Author-X-Name-First: Luis Enrique
Author-X-Name-Last: Escalante
Author-Name: Hélène Maisonnave
Author-X-Name-First: Hélène
Author-X-Name-Last: Maisonnave
Author-Name: Margaret Raviro Chitiga
Author-X-Name-First: Margaret Raviro
Author-X-Name-Last: Chitiga
Title: Do South African fiscal reforms benefit women?
Abstract: 
 Economic reforms affect men and women differently. In South Africa, gender and racial disparities still exist in the labour market, with women being highly vulnerable. The South African economy is in a depressed situation, with high levels of debt and public deficit. To improve the financial situation of the country, the government has implemented two new fiscal reforms: increase Value-added tax (VAT) for all commodities by 1%, excluding food, and reduce public spending by 5%. This paper evaluates the impacts of both reforms on women from all population groups in terms of employment and poverty levels, by using a Computable General Equilibrium model with micro-simulations. The simulations reveal that both policies have negative impacts on agents, particularly households and firms and poverty levels among women of all population groups. The hike in VAT increases the number of poor households, with women more affected than men. The drop in public spending shows negative impacts for all agents, however, it has lower impacts on poverty levels than those occurring from increasing VAT. The results reveal that South African women, of all population groups, are more vulnerable to the negative impacts of both reforms than men.
Journal: Applied Economics
Pages: 719-729
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1813247
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1813247
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:719-729




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Blake-Gonzalez
Author-X-Name-First: Barbara
Author-X-Name-Last: Blake-Gonzalez
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: James V. Koch
Author-X-Name-First: James V.
Author-X-Name-Last: Koch
Title: Drug-overdose death rates: the economic misery explanation and its alternatives
Abstract: 
 ‘Deaths of despair’ is the most commonly cited explanation for the 151% increase in drug-overdose deaths that occurred in the USA between 2010 and 2018. We use panel data describing 84 Virginia cities and counties to assess the validity of the deaths of despair hypothesis and alternate explanations that focus on disability rates, travel time to work, urban vs. rural location, educational attainment, racial and ethnic characteristics, the influence of other health conditions such as obesity, and supply-side factors that include pill availability and pharmacy market shares. We find deaths of despair to be only a partial explanation for the upsurge in drug-overdose deaths and conclude that a much broader view of the causes of drug-overdose deaths is merited.
Journal: Applied Economics
Pages: 730-741
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1813248
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1813248
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:730-741




Template-Type: ReDIF-Article 1.0
Author-Name: Hany Fahmy
Author-X-Name-First: Hany
Author-X-Name-Last: Fahmy
Title: How technological emergence, saturation, and rejuvenation are re-shaping the e-commerce landscape and disrupting consumption? A time series analysis
Abstract: 
 Technological advancements in the ICT sector have enabled the development of online platforms that have drastically transformed the e-commerce landscape. The rise of the sharing economy is a key in point. Academics claim that this change is causing a noticeable shift in consumers’ habits from traditional towards collaborative and sharing activities due to environmental, social, and economic motives. In this article, we test the empirical validity of this hypothesis; namely, we test whether or not the recent change in e-commerce landscape is causing a permanent transition in US consumption over the last two decades by fitting a nonlinear smooth transition regression model to the cycle of US consumption with a constructed exogenous regime-driving variable that captures the various aspects of digital technology. The econometric analysis confirms the existence of a non-permanent regime switch in consumption. In particular, we show that the emergence, saturation, and rejuvenation of digital technology are causing consumption to switch between two stationary regimes. Consumption oscillates smoothly, but frequently, between both regimes in the early period (2000-2006) due to the emergence of new technologies and in the recent period (2017-2019) due to technological rejuvenation. It persists, however, in the mid period (2007-2016) due technological saturation.
Journal: Applied Economics
Pages: 742-759
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1813249
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1813249
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:742-759




Template-Type: ReDIF-Article 1.0
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Author-Name: Furkan Emirmahmutoglu
Author-X-Name-First: Furkan
Author-X-Name-Last: Emirmahmutoglu
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Title: Comparison of optimization algorithms for selecting the fractional frequency in Fourier form unit root tests
Abstract: 
 We compare the performance of unit root tests which include flexible Fourier trends in their testing processes. The algorithms considered are those of Broyden, Fletcher, Goldfarb and Shanno (BFGS), Berndt, Hall, Hall and Hausman (BHHH), Simplex, Genetic and grid search (GS). The simulation results indicate that derivative-free methods, such as Genetic and Simplex, have advantages over hill-climbing methods, such as BFGS and BHHH in providing accurate fractional frequencies for fractional frequency flexible Fourier form (FFFFF) unit root test. When the parameters are estimated under the alternative hypothesis of the FFFFF type of unit root test, the grid search and derivative-free methods provide unbiased and efficient estimations. We also provide the asymptotic distribution of the FFFFF unit root test. We extend the FFFFF unit root test to a panel version in order to increase the power of the test. Finally, the empirical analyses of Covid19 unit root test show that derivative-free methods, are better than other methods. However, for big data and accurate estimation of the frequency parameters, the Simplex methodology using the bootstrap process is preferred.
Journal: Applied Economics
Pages: 761-780
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1814945
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814945
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:761-780




Template-Type: ReDIF-Article 1.0
Author-Name: Donghua Wang
Author-X-Name-First: Donghua
Author-X-Name-Last: Wang
Author-Name: Jin Ding
Author-X-Name-First: Jin
Author-X-Name-Last: Ding
Author-Name: Guoqing Chu
Author-X-Name-First: Guoqing
Author-X-Name-Last: Chu
Author-Name: Dinghai Xu
Author-X-Name-First: Dinghai
Author-X-Name-Last: Xu
Author-Name: Tony S. Wirjanto
Author-X-Name-First: Tony S.
Author-X-Name-Last: Wirjanto
Title: Modelling asset returns in the presence of price limits with Markov-switching mixture of truncated normal GARCH distribution: evidence from China
Abstract: 
 This article proposes a general framework of a Markov Switching GARCH model with a mixture of truncated Gaussian to model asset returns with price limits in China. Theoretically, while retaining many convenient statistical properties of the Gaussian distribution, the proposed model also assumes a flexible time-varying volatility structure to accommodate the feature of the return data under price restrictions in China, such as the clusters near the bounds (due to the ‘bound effect’). Empirically, we apply the model to eight representative stocks from Shanghai and Shenzhen stock markets in China. Lastly, we find that our proposed model dominates the conventional volatility models in terms of Value-at-Risk measures.
Journal: Applied Economics
Pages: 781-804
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1814946
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814946
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:781-804




Template-Type: ReDIF-Article 1.0
Author-Name: Murat Genç
Author-X-Name-First: Murat
Author-X-Name-Last: Genç
Author-Name: Stephen Knowles
Author-X-Name-First: Stephen
Author-X-Name-Last: Knowles
Author-Name: Trudy Sullivan
Author-X-Name-First: Trudy
Author-X-Name-Last: Sullivan
Title: In search of effective altruists
Abstract: 
 The effective altruism movement argues that people wanting to do the most good they can should donate to charities fighting poverty in poor countries overseas, rather than to charities helping people in need in wealthy countries. This is because there is greater need in the developing world meaning it is possible to save lives or improve living conditions at reasonably low cost. However, most people living in developed countries prefer to donate to charities helping people in need in their own country, rather than charities helping people in need in the developing world. This paper analyses why this might be. We conduct a discrete choice experiment to determine the relative importance people place on the effectiveness of a donation, the need of recipients, and whether the donation will be spent at home or overseas. We find that many people place more weight on where the donation will be spent than on how effective it will be. We also find that a significant number of people are not aware, or do not believe, a donation will be more effective in the developing world. In addition, many people’s donation decisions are guided by emotion or intuition, rather than rational calculation.
Journal: Applied Economics
Pages: 805-819
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1814947
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814947
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:805-819




Template-Type: ReDIF-Article 1.0
Author-Name: Minjung Kim
Author-X-Name-First: Minjung
Author-X-Name-Last: Kim
Title: Firm’s globalization and wage elasticity of labour demand in South Korea
Abstract: 
 This study investigates the effects of exports and overseas investments on the wage elasticity of labour demand for both foreign multinational corporations (MNCs) and Korean MNCs using a 2006–2015 firm-level unbalanced panel dataset from South Korea. I employ the system generalized method of moments to estimate a dynamic labour demand function to solve the problem of reverse causality due to potential endogeneity. The results suggest that exports play a critical role in increasing wage elasticity among foreign MNCs, whereas overseas investments render labour demand more elastic among both foreign MNCs and Korean MNCs. Particularly, these effects of globalization on increasing wage elasticity became strengthened among foreign MNCs during the post-financial crisis period. Moreover, the intra-firm and inter-firm exports of foreign MNCs from OECD nations, which reflect the vertical integration of foreign MNCs with their affiliated firms, increase the wage elasticity of labour demand. Since overseas investments induce higher wage elasticity of labour demand, overseas investment substitutes for local production activity. These empirical results imply that the rapid pace of globalization exacerbates the instability of the local labour market, and the aggravation of employment vulnerability during the post-crisis period is driven by foreign MNC activity.
Journal: Applied Economics
Pages: 820-829
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1814948
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814948
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:820-829




Template-Type: ReDIF-Article 1.0
Author-Name: Hongshan Ai
Author-X-Name-First: Hongshan
Author-X-Name-Last: Ai
Author-Name: Yang Hu
Author-X-Name-First: Yang
Author-X-Name-Last: Hu
Author-Name: Ke Li
Author-X-Name-First: Ke
Author-X-Name-Last: Li
Title: Impacts of environmental regulation on firm productivity: evidence from China’s Top 1000 Energy-Consuming Enterprises Program
Abstract: 
 Regulatory environmental policy is crucial for energy conservation and emission reduction. However, no consensus is available on its impact on enterprises’ total factor productivity (TFP). This study took 6631 chemical enterprises as examples to investigate the impacts of the Top 1000 Energy-Consuming Enterprises Program (T1000P) on enterprises’ productivity. The empirical results from the difference-in-differences method indicate that the T1000P hinders TFP improvement. Specifically, the TFP change rate of enterprises affected by the T1000P decreased by 0.9230% annually. Mechanism analysis shows that the impact of T1000P includes increasing business costs, and reducing the profits of regulated companies. By checking the ‘compensation effect’ and ‘crowding out effect’ of the T1000P on enterprises’ technological progress, we prove that the T1000P had negative impacts on technological innovation and reduced the enterprises’ productivity. Therefore, the environmental regulations should be implemented based on industry characteristics and develop differentiated strategies to avoid excessive interference with the enterprises’ production decisions.
Journal: Applied Economics
Pages: 830-844
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1815642
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1815642
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:830-844




Template-Type: ReDIF-Article 1.0
Author-Name: Rose Cunningham
Author-X-Name-First: Rose
Author-X-Name-Last: Cunningham
Author-Name: Eden Hatzvi
Author-X-Name-First: Eden
Author-X-Name-Last: Hatzvi
Author-Name: Kun Mo
Author-X-Name-First: Kun
Author-X-Name-Last: Mo
Title: The size and destination of China’s portfolio outflows
Abstract: 
 China’s large financial system is relatively closed, raising concerns that liberalization of China’s capital account could have disruptive effects on the global financial system. We estimate a portfolio allocation model to estimate an economy’s foreign portfolio investment, using panel data for 39 economies. We estimate the model separately for equity and debt securities holdings. We find that portfolio allocation to a foreign economy depends on the destination economy’s market size, gravity variables, governance indicators and capital controls in source and destination economies. We then construct a counterfactual scenario of China’s overseas portfolio investment allocations in 2015 if China had liberalized capital outflows. The analysis indicates that China’s holdings of overseas portfolio assets would have been large at 13% to 29% of Chinese GDP, or 5 to 12 times its actual levels. These asset holdings would have been predominantly from the world’s deepest financial markets: the United States, euro area and Japan. Emerging-market economies would have received relatively little additional portfolio inflows from China, suggesting that liberalization of China’s portfolio outflows may not prove disruptive to the global financial system.
Journal: Applied Economics
Pages: 845-867
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1817307
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1817307
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:845-867




Template-Type: ReDIF-Article 1.0
Author-Name: Lifang Xu
Author-X-Name-First: Lifang
Author-X-Name-Last: Xu
Title: A Model of Nominal Wage Stickiness
Abstract: 
 This paper builds a parsimonious model of nominal wage stickiness based on wage dispersion induced by search frictions. The paper shows that this model can explain those salient features of wage adjustment in the data, including the average frequency of wage adjustment, the average duration of a wage, and the size distribution of wage changes.
Journal: Applied Economics
Pages: 868-879
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820441
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820441
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:868-879




Template-Type: ReDIF-Article 1.0
Author-Name: Yunyun Jiang
Author-X-Name-First: Yunyun
Author-X-Name-Last: Jiang
Author-Name: Haitao Zheng
Author-X-Name-First: Haitao
Author-X-Name-Last: Zheng
Author-Name: Ran Wang
Author-X-Name-First: Ran
Author-X-Name-Last: Wang
Title: The effect of institutional ownership on listed companies’ tax avoidance strategies
Abstract: 
 The percentage of institutional ownership in China has increased gradually. Does this characteristic of Chinese institutional investors affect their participation in corporate governance, which in turn, affects corporate tax avoidance activities? We take 1108 listed Chinese companies from 2009 to 2017 to study this issue. The paper uses average daily total market capitalization as an instrumental variable to test the endogeneity problems. We run a quantile regression (QR) at the median level as robustness testing to overcome the fat tail of financial data. Then, the shareholding ratio of majority shareholders is introduced to verify that ownership concentration is one of the mechanisms through which institutional shareholders influence corporate tax avoidance decisions. The findings are as follows: The proportion of institutional investors’ shareholdings is positively related to the degree of enterprise tax avoidance. The increase in institutional investors’ shareholdings is likely to promote corporate tax avoidance. When the level of ownership concentration is low, the increase in institutional ownership can play a greater role in promoting tax avoidance.
Journal: Applied Economics
Pages: 880-896
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1817308
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1817308
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:880-896




Template-Type: ReDIF-Article 1.0
Author-Name: Chandan Sharma
Author-X-Name-First: Chandan
Author-X-Name-Last: Sharma
Author-Name: Debdatta Pal
Author-X-Name-First: Debdatta
Author-X-Name-Last: Pal
Title: Revisiting resource curse puzzle: new evidence from heterogeneous panel analysis
Abstract: 
 This study examines the natural resource curse hypothesize on a panel of 111 countries over the period 1996–2015. Using a range of heterogeneous panel cointegration techniques, it tests the resource curse hypothesis while allowing for cross-section heterogeneity. Specifically, it employs common correlated effects mean group, cross-sectionally augmented autoregressive distributed lag (CS-ARDL), and cross-sectionally augmented distributed lag (CS-DL) techniques. It begins the analysis with a conventional method in which the average value of variables is considered. The conventional approach fails to provide any clear evidence. The CCEMG estimator yields limited evidence supporting the resource curse in the long-run. However, CS-DL and CS-ARDL results show strong evidence for resources as a curse in the short-run, however, the evidence is weak in suggesting any long-run influence of resource-dependence on economic growth. Furthermore, CS-ARDL-based results also show that the effects work with a lag. Overall, we find support for the resource curse hypothesis, suggesting that resource-rich economies tend to grow at a slower rate in comparison to the resource-deprived ones.
Journal: Applied Economics
Pages: 897-912
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1817309
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1817309
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:897-912




Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Osman
Author-X-Name-First: Mohamed
Author-X-Name-Last: Osman
Title: Persistence, mean reversion, and non-linearities in inflation rates in the GCC countries: an eclectic approach
Abstract: 
 The inflation rate is a key variable in many macroeconomic models that are used to guide policy analysts and lead to effective decisions. However, achieving this outcome depends, to a large extent, upon the validity of these macroeconomic models whose successes, in turn, critically depend on whether inflation is stationary or not. In this paper, we investigate the dynamics of inflation in the Gulf Cooperation Council countries using both linear and non-linear tests. To add an extra layer of robustness to our results, we avoid the pitfalls of the econometrics of stationarity by applying the MS-ADF and Fourier ADF tests. After using a battery of tests, the analysis provides more reliable inferences on the question of whether the inflation rates of these countries are I(0) or I(1). The findings convincingly support the view that not only are the inflation rates of these countries non-linear, but they are also characterized by mean-reversion behaviour. The policy implication of our findings is that random shocks will not have permanent effects and that active monetary policies are not needed, as these effects will eventually disappear in the long run.
Journal: Applied Economics
Pages: 913-923
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1819950
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1819950
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:913-923




Template-Type: ReDIF-Article 1.0
Author-Name: Diana Becerra-Peña
Author-X-Name-First: Diana
Author-X-Name-Last: Becerra-Peña
Author-Name: Daniel Santin
Author-X-Name-First: Daniel
Author-X-Name-Last: Santin
Title: Measuring public primary education productivity across Mexican states using a Hicks-Moorsteen index
Abstract: 
 Despite the importance of analysing how an educational system works across regions, there is a lack of research benchmarking regions’ performance over time. The aim of this research is to measure total factor productivity changes (TFPC) in the primary education sector across 30 Mexican states over eight academic years from 2006–07 to 2013–14. To do this, we calculate the Hicks-Moorsteen total factor productivity index (HMTFP) using information on third-grade primary education students attending publicly funded schools. We also explore the main environmental factors behind these differences in productivity. Estimates for the analysed period show an average positive TFPC of 1.91%, driven by technological progress. We also find a significant positive effect on productivity when the policy party governing at the federal and the state levels coincide. The paper concludes by pointing out the need to use school-level data to monitor and evaluate the education systems as an indispensable element for delivering efficient and effective public administration services to citizens.
Journal: Applied Economics
Pages: 924-939
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1819951
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1819951
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:924-939




Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Igor Pereira
Author-X-Name-First: Igor
Author-X-Name-Last: Pereira
Title: The relationship between terrorist attacks and cryptocurrency returns
Abstract: 
 Complementing increasing concerns that cryptocurrency could be used to finance terror networks, in this paper we investigate the effect of monthly terrorist attacks outcomes – success, injuries, and fatalities – on monthly returns of 1,178 cryptocurrencies representing 18,016 cryptocurrency-year-months between 2014 and 2018. The monthly percentage of successful terror attacks Granger causes the monthly cryptocurrency returns and lowers the monthly cryptocurrency returns. Increasing success in terror attacks is negatively associated with cryptocurrency returns, the count of wounded is negatively associated with cryptocurrency returns, however, the count of dead is positively associated with cryptocurrency returns. The success in terror attacks has the largest effect on returns, relative to the count of wounded and dead. The estimates are consistent when controlling for cross-sectional correlation among major cryptocurrencies, and cryptocurrencies could be a weak hedge against successful terrorist attacks. The findings are robust to cryptocurrencies in the top three quartiles of the market capitalization and the mediation analysis shows that terror attacks lower returns through the decline in the short-term macroeconomic cycle.
Journal: Applied Economics
Pages: 940-961
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1819952
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1819952
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:940-961




Template-Type: ReDIF-Article 1.0
Author-Name: Xi Zhang
Author-X-Name-First: Xi
Author-X-Name-Last: Zhang
Author-Name: Renatas Kizys
Author-X-Name-First: Renatas
Author-X-Name-Last: Kizys
Author-Name: Christos Floros
Author-X-Name-First: Christos
Author-X-Name-Last: Floros
Author-Name: Konstantinos Gkillas
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Gkillas
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Testing for rational bubbles in the UK housing market
Abstract: 
 Over the past decade, the UK has witnessed significant booms in the real estate market, and housing prices have experienced increases. Since 1997, the housing price has almost tripled, which is far beyond the long-term trend. To identify the existence of housing bubbles is a crucial issue for any country to prevent possible damage to economies and outbreaks of financial crises. The objective of this paper is to examine the existence of a housing price bubble in the UK through employing a co-explosive vector autoregression (VAR) model, originally applied to stock markets. The results demonstrate that both housing price and rental price show explosive behaviour during their growth, which provides little evidence to support the presence of real estate bubbles in the UK.
Journal: Applied Economics
Pages: 962-975
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820440
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820440
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:962-975




Template-Type: ReDIF-Article 1.0
Author-Name: Jianxin Wu
Author-X-Name-First: Jianxin
Author-X-Name-Last: Wu
Author-Name: Yanrui Wu
Author-X-Name-First: Yanrui
Author-X-Name-Last: Wu
Author-Name: Tsun Se Cheong
Author-X-Name-First: Tsun Se
Author-X-Name-Last: Cheong
Title: New evidence on the convergence and regional clusters in China: a weighted continuous distribution dynamics approach
Abstract: 
 This paper examines income convergence by using a continuous distribution dynamics approach which takes both population and economic size into consideration. The study is based on a panel dataset of 31 Chinese provinces from 1952 to 2013. The impacts of geographical location, capital accumulation, trade openness and industrial structure are also evaluated by conditional analysis. This paper provides a new angle for examining the spatial distribution dynamics of China’s provincial income. The results show that the ergodic distribution of the pre-reform period is multimodal, while the ergodic distribution of the post-reform period is bimodal. However, the ergodic distribution of the more recent period 2000–2013 is found to be unimodal. All three ergodic distributions are right-skewed. The weighted analysis shows that by neglecting population and economic size, the economic performance in the pre-reform period may be overestimated, while the poverty reduction effect in the post-reform period may be underestimated. The results suggest that relocating people and economic activities to high-income provinces is an important approach to reduce relative poverty. Conditional analysis results indicate that geographical location, capital accumulation, trade openness and industrial structure have a significant influence on the distribution dynamics of per capita GDP. However, the observed bimodality cannot be explained by one of the four factors.
Journal: Applied Economics
Pages: 976-995
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820443
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820443
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:976-995




Template-Type: ReDIF-Article 1.0
Author-Name: Hideaki Sakawa
Author-X-Name-First: Hideaki
Author-X-Name-Last: Sakawa
Author-Name: Naoki Watanabel
Author-X-Name-First: Naoki
Author-X-Name-Last: Watanabel
Title: Main bank relationships and risk taking in Japanese listed firms
Abstract: 
 Bank–firm relationships play a role in the degree of corporate risk taking that guides financing decisions. As such, we study whether the magnitude of corporate risk taking is associated with close bank–firm ties in Japan. To this end, we use data on publicly listed firms from 2007 to 2016 following the bank mergers that occurred in the wake of Japanese financial deregulation, and select risk variables such as idiosyncratic and total risk as proxies for corporate risk taking. The empirical evidence suggests that close bank ties can drive firms to take fewer risks. The results remain unchanged even after controlling for endogeneity. Finally, we observe that smaller firms with higher growth opportunities tend to reduce the degree of corporate risk taking when they form close bank ties.
Journal: Applied Economics
Pages: 996-1012
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820444
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820444
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:996-1012




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Faisal Shahzad
Author-X-Name-First: Muhammad Faisal
Author-X-Name-Last: Shahzad
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: The heterogeneous effects of adoption of climate-smart agriculture on household welfare in Pakistan
Abstract: 
 In this study, we analyse the heterogeneity in the impacts of adoption of climate-smart agricultural (CSA) practices on welfare indicators such as food and nutrition security and poverty reduction in Pakistan. We employ the marginal treatment effects (MTE) approach to estimate the treatment effects heterogeneity and policy-relevant treatment effects (PRTE). The findings show substantial heterogeneity in benefits from adoption of CSA with respect to both observed and unobserved household characteristics. In particular, the estimates show that households with higher unobserved benefits are more likely to adopt CSA practices. The empirical results show that adoption of CSA practices significantly reduces household food insecurity and increases household dietary diversity but reduces the poverty headcount and severity of poverty of the households at the lower level of unobserved resistance to adoption. The PRTE indicate that sources of climate change information and climate-resilient trainings could help to reduce rural poverty and improve food and nutrition security in Pakistan.
Journal: Applied Economics
Pages: 1013-1038
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820445
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820445
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1013-1038




Template-Type: ReDIF-Article 1.0
Author-Name: Max Resende
Author-X-Name-First: Max
Author-X-Name-Last: Resende
Author-Name: Francis Petterini
Author-X-Name-First: Francis
Author-X-Name-Last: Petterini
Title: Simulating the effects of automatic promotion on early dropouts for both poor and rich students: an application to Brazilian data
Abstract: 
 The debate regarding the relative effects of automatic grade promotion versus grade retention has long concerned education policymakers and researchers. This work applies a random-effects probit model to assess the probability of early dropout in Brazilian public schools based on a unique administrative database which permits to infer household income at the student level for more than 60 thousand pupils enrolled in 273 schools. The results suggest evidence that decisions to drop out early are significantly influenced by whether approval has taken place and age-grade distortion. Moreover, simulation exercises have suggested that automatic grade promotion policy could reduce up to 35% the probability of a low-income student dropout from secondary school, while 24% for their rich peers.
Journal: Applied Economics
Pages: 1039-1051
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1822510
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1822510
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1039-1051




Template-Type: ReDIF-Article 1.0
Author-Name: Blaise Gnimassoun
Author-X-Name-First: Blaise
Author-X-Name-Last: Gnimassoun
Author-Name: Isabelle Do Santos
Author-X-Name-First: Isabelle
Author-X-Name-Last: Do Santos
Title: Robust structural determinants of public deficits in developing countries
Abstract: 
 Many macroeconomic, institutional, demographic, social and political variables have been proposed by previous studies as significant determinants of public deficits in developing countries. This paper asks whether their estimated impact on public deficits is robust under thousands of possible alternative specifications. We deal with model uncertainty using Sala-i-Martin’s Extreme Bound Analysis. Our results clearly show that external shocks, the debt ratio, financial development, the level of democracy and government control over expenditures are robustly associated with fiscal deficits. Public deficits are lower in countries which provide better stability of public expenditure in the face of revenue instability and which are less exposed to negative external shocks. In contrast, fiscal deficits increase with the debt ratio, financial development and the level of democracy. The relative importance of external shocks in all the regressions argues in favour of greater economic diversification in order to mitigate the impact of negative shocks on public finances.
Journal: Applied Economics
Pages: 1052-1076
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1824063
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1824063
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1052-1076




Template-Type: ReDIF-Article 1.0
Author-Name: Ateeb Akhter Shah Syed
Author-X-Name-First: Ateeb Akhter Shah
Author-X-Name-Last: Syed
Author-Name: Kevin Haeseung Lee
Author-X-Name-First: Kevin Haeseung
Author-X-Name-Last: Lee
Title: Macroeconomic forecasting for Pakistan in a data-rich environment
Abstract: 
 This article forecasts the CPI inflation, GDP growth and the weighted average overnight repurchase rate in Pakistan using 161 predictors covering a period from July 2007 to July 2017. We use the naïve mean model and the autoregressive model as benchmark models and compare their forecasting performance against the dynamic factor model (DFM) and sophisticated machine learning methods such as the Ridge regression, the LASSO, the Elastic net and a few variants of Bagging. The main purpose of the article is to determine, how well the commonly used DFM which has been used for time series forecasting for a long time, performs against the recently developed penalized regression methods in forecasting key macroeconomic variables in Pakistan. We forecast the variables of interest over 12 months forecast horizon. The forecast evaluation criteria used to compare the forecast performance of these models is the RMSE and MASE. For each variable of interest, we find that, for majority of the cases considered, one of the competing approaches outperform the benchmark models and other competing approaches at majority of forecast horizons. Our results show that, on the balance, the machine learning approaches perform better than the benchmark, the autoregressive and the DFM.
Journal: Applied Economics
Pages: 1077-1091
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1826399
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1826399
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1077-1091




Template-Type: ReDIF-Article 1.0
Author-Name: Mauricio Varas
Author-X-Name-First: Mauricio
Author-X-Name-Last: Varas
Author-Name: Franco Basso
Author-X-Name-First: Franco
Author-X-Name-Last: Basso
Author-Name: Sergio Maturana
Author-X-Name-First: Sergio
Author-X-Name-Last: Maturana
Author-Name: Raúl Pezoa
Author-X-Name-First: Raúl
Author-X-Name-Last: Pezoa
Author-Name: Marcelo Weyler
Author-X-Name-First: Marcelo
Author-X-Name-Last: Weyler
Title: Measuring efficiency in the Chilean wine industry: a robust DEA approach
Abstract: 
 The Chilean wine industry has been quite innovative in terms of winemaking and trading. Yet, to survive in this competitive industry, wine managers should be aware of the relevance of monitoring their performance. In this paper, we assess how the five wineries listed on the Santiago Stock Exchange of Chile are efficient while using their critical resources for making profits. Particularly, we apply data envelopment analysis (DEA) to benchmark and rank these wineries’ technical efficiency based on four inputs and one output. We use data gathered from consolidated financial statements that are prepared using estimates, judgements, and assumptions. To account for some level of ex-post adjustments in data, we evaluate these wineries’ relative efficiency using a robust DEA model, which deals with ambiguous, imprecise, and uncertain input-output parameters. We analyse several levels of variability suitable for this data source, and we evaluate how changing the conservatism level affects technical efficiency and the rankings of the wineries. We also conduct a comparison between the five Chilean wineries and nine others from the New World. As the main conclusion, we found that Chilean wineries keep their efficiency level when including international firms in the analysis.
Journal: Applied Economics
Pages: 1092-1111
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1826400
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1826400
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1092-1111




Template-Type: ReDIF-Article 1.0
Author-Name: Bern Caudill Dealy
Author-X-Name-First: Bern Caudill
Author-X-Name-Last: Dealy
Author-Name: Aaron Kearsley
Author-X-Name-First: Aaron
Author-X-Name-Last: Kearsley
Author-Name: Carolyn Wolff
Author-X-Name-First: Carolyn
Author-X-Name-Last: Wolff
Author-Name: Elizabeth Botkins
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Botkins
Author-Name: Nellie Lew
Author-X-Name-First: Nellie
Author-X-Name-Last: Lew
Author-Name: Clark Nardinelli
Author-X-Name-First: Clark
Author-X-Name-Last: Nardinelli
Title: Willingness to pay to standardize patient medication information
Abstract: 
 Pharmacists dispense prescription drugs with leaflets containing information about the specific medication a patient receives. These leaflets vary in format, length, content, and readability for the same prescription drug at different pharmacies; they also vary for different prescription drugs at the same pharmacy. Previous research has found that most patients prefer standardization of these leaflets; however, standardization is costly, and there are no published studies that estimate the value of such standardization to consumers. We use a contingent valuation survey to investigate consumer willingness to pay for standardized informational leaflets in the retail pharmacy setting. We present results of analyses based on contingent valuation responses of 510 federal government employees. The survey design was a double-bounded advisory referendum elicitation format where respondents were presented with examples of standardized and non-standardized prescription drug information formats. The study found the willingness to pay for standardized informational leaflets was approximately $1.37 per household per month. The estimated willingness to pay is sensitive to alternative econometric specifications, evidence of possible survey response bias; however, across all models, the estimates are statistically and economically significant.
Journal: Applied Economics
Pages: 1112-1126
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1826401
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1826401
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1112-1126




Template-Type: ReDIF-Article 1.0
Author-Name: Yuhuang Shang
Author-X-Name-First: Yuhuang
Author-X-Name-Last: Shang
Author-Name: Qingma Dong
Author-X-Name-First: Qingma
Author-X-Name-Last: Dong
Title: Oil volatility forecasting and risk allocation: evidence from an extended mixed-frequency volatility model
Abstract: 
 This paper proposes a novel GARCH-MIDAS-SK (G-M-SK) model that improves the basic GARCH-MIDAS (G-M) model by incorporating time-varying skewness and kurtosis. We employ our model with data concerning macroeconomic fundamentals to investigate in-sample fit and out-of-sample prediction of volatility in crude oil prices. Empirical results suggest that G-M-SK models produce the better in-sample fit than basic G-M models do. This result is also robust for the subsample of the oil market. It is equally noteworthy that modelling low-frequency macroeconomic variables better reveals the long-term volatility from time-varying skewness and kurtosis. More importantly, G-M-SK model significantly and robustly improves accuracy in predicting oil volatility. In particular, we find that data regarding macroeconomic fundamentals contribute more to forecasting volatility in oil prices than their variance does. Finally, our G-M-SK model more precisely calculates the utility incident to minimizing risk and allocating portfolios. Its results are consistent with out-of-sample forecasting results. These results are beneficial to the decision-making of the crude oil investors and policymakers alike.
Journal: Applied Economics
Pages: 1127-1142
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1826402
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1826402
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1127-1142




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chi Yin
Author-X-Name-First: Chi
Author-X-Name-Last: Yin
Author-Name: Min-Rui Choo
Author-X-Name-First: Min-Rui
Author-X-Name-Last: Choo
Title: Bank competition and firms’ dependence: evidence from firms’ role
Abstract: 
 This research provides empirical evidence on bank-firm relationships from firms’ role in discussing their dependence on banks from the perspectives of bank competition. Using a rich dataset of loans, we find that firms reduce their dependence on banks when banks operate in a more competitive environment. These effects are more pronounced when firms are financially distressed and constrained. Moreover, firms with active family control exhibit less dependence on lenders in a competitive environment. Our evidence provides specific strategies and self-consideration of borrowers and lenders.
Journal: Applied Economics
Pages: 1143-1162
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1827134
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827134
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1143-1162




Template-Type: ReDIF-Article 1.0
Author-Name: Alexandre Frondizi
Author-X-Name-First: Alexandre
Author-X-Name-Last: Frondizi
Author-Name: Simon Porcher
Author-X-Name-First: Simon
Author-X-Name-Last: Porcher
Title: The economics of street-level prostitution in Paris during the ‘Belle Epoque’ (1870-1914)
Abstract: 
 How can districts become completely embedded in informal economies despite harsh state regulation? In this paper, we use qualitative and quantitative data to explain the increasing number of ‘clandestine’ street-level prostitutes in a district of Paris during the Belle Epoque (1870–1914). Using an original dataset on street-level prostitutes, we describe the economics of street-level prostitution at the time: street prostitutes were young, unskilled and relatively well paid; they tended to work with pimps who were from the same area and clustered in neighbourhoods where they could compete with regulated brothels. Street prostitutes generated profits not only for themselves but also for a whole range of actors, thereby switching the whole local economy to this industry at the expense of the formal economy.
Journal: Applied Economics
Pages: 1163-1177
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1827135
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827135
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1163-1177




Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner
Author-X-Name-First: Richhild
Author-X-Name-Last: Moessner
Author-Name: William A. Allen
Author-X-Name-First: William A.
Author-X-Name-Last: Allen
Title: Effects of the Fed’s enhanced swap line with the ECB on CIP deviations
Abstract: 
 In this paper we study the effects of the enhancement of the Fed’s swap line with the ECB during the coronavirus epidemic on dollar cross-currency basis swap spreads against the euro, which had widened during the coronavirus crisis, reflecting greater deviations from covered interest parity (CIP). We find that the enhanced swap line contributed to making the three-month dollar cross-currency basis swap spreads against the euro less negative, i.e. narrowing the CIP deviations.
Journal: Applied Economics
Pages: 1178-1183
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1827137
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827137
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1178-1183




Template-Type: ReDIF-Article 1.0
Author-Name: Ripon Kumar Mondal
Author-X-Name-First: Ripon Kumar
Author-X-Name-Last: Mondal
Author-Name: Eliyathamby A Selvanathan
Author-X-Name-First: Eliyathamby A
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: Nexus between rural nonfarm income and agricultural production in Bangladesh
Abstract: 
 Evidence from the rural livelihood literature shows that farm households in developing countries engage in nonfarm employment to supplement their household income. This raises the question of whether nonfarm income complements or competes with agricultural production due to a possible shift in farm household labour to nonfarm employment. Using survey data, this study examines the impact of rural nonfarm income on farm households’ agricultural production in Bangladesh. Applying the instrumental variable Tobit model, we find a nonlinear relationship between nonfarm income and total production expenditure as well as expenditures on major purchased inputs (equipment, seed, fertilizer, purchased labour). This indicates that when nonfarm income rises, production expenditure increases but at a decreasing rate. Furthermore, the endogenous stochastic frontier production model indicates that technical inefficiency in agricultural production decreases at an increasing rate when nonfarm income rises. Overall, the findings of this study suggest that nonfarm income exerts an income effect on agricultural production by reducing the liquidity constraint and intensifying major purchased inputs. Thus, introducing policies that would increase rural nonfarm income opportunities to rural households complements agricultural production. This would also lead to raised food production, ultimately leading to an increase in food availability as well as food security.
Journal: Applied Economics
Pages: 1184-1199
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1827138
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827138
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1184-1199




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Breuer
Author-X-Name-First: Christoph
Author-X-Name-Last: Breuer
Author-Name: Sören Dallmeyer
Author-X-Name-First: Sören
Author-X-Name-Last: Dallmeyer
Author-Name: Christopher Rumpf
Author-X-Name-First: Christopher
Author-X-Name-Last: Rumpf
Author-Name: Johannes Orlowski
Author-X-Name-First: Johannes
Author-X-Name-Last: Orlowski
Title: The effect of sponsorship portfolio size on brand choice: an experimental approach
Abstract: 
 Profound knowledge of the behavioural response to sponsorship messages is sparse. In an effort to provide a better understanding of the relationship between sponsorship investments and the consumer’s brand choice, an online experiment was conducted focusing on the role of the sponsorship portfolio size. In the context of sponsorship activities in the English Premier League, the study investigates how brand decision making can be influenced by the number of sponsored players wearing a particular footwear brand. Based on a microeconomic perspective, additional factors influencing the brand decision-making process, such as the overall brand status and prior brand experience, are considered. Logit regression models reveal that brand-choice behaviour is sensitive to the extent of sponsorship portfolio size, however, in a non-linear way. The results can be regarded as a next step in predicting the behavioural outcomes from sponsorship activities as the basis to estimate the economic efficiency of sponsorship investment.
Journal: Applied Economics
Pages: 1200-1211
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1834500
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1834500
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1200-1211




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Author-Name: Yu Wang
Author-X-Name-First: Yu
Author-X-Name-Last: Wang
Title: Price dynamics of China’s housing market and government intervention
Abstract: 
 China’s housing sector offers an interesting case study of relationship between government interventions and price dynamics. Frequent and intensive government interventions create a highly fluctuant housing market in China. This paper applies a structural break model to investigate the dynamics in the evolution of China’s housing price between 1998 and 2016. Results show that the development of China’s real estate market exhibits much richer characteristics of structural changes rather than simple switching between boom and burst. Further studies indicate that government interventions is the most important source of structural changes in the dynamics of China’s housing market because of the inherent conflict between policy aims of market stability and rapid economic development mainly backed up by the housing sector.
Journal: Applied Economics
Pages: 1212-1224
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1838432
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1838432
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1212-1224




Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Author-Name: Ibrahim N. Khatatbeh
Author-X-Name-First: Ibrahim N.
Author-X-Name-Last: Khatatbeh
Title: Robust and fragile determinants of the infection and case fatality rates of Covid-19: international cross-sectional evidence
Abstract: 
 An attempt is made to identify the factors that can explain inter-country differences in the severity of Covid-19, measured by the infection and case fatality rates. To circumvent the problem of the sensitivity of the results with respect to the selected set of explanatory variables, extreme bounds analysis (EBA) is applied to a cross-sectional sample of 154 countries. The results show that the infection and fatality rates depend on different factors, except for the number of tests, which is a robust determinant of both. An interesting result is that the infection rate depends on urban population rather than the overall population density. Another interesting result is that the fatality rate depends on the age structure of the population and population density but not on the percentage of urban population.
Journal: Applied Economics
Pages: 1225-1234
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1827139
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827139
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1225-1234




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Yuan Wu
Author-X-Name-First: Chih-Yuan
Author-X-Name-Last: Wu
Author-Name: Heng-Chih Chou
Author-X-Name-First: Heng-Chih
Author-X-Name-Last: Chou
Author-Name: Chiung-Lin Liu
Author-X-Name-First: Chiung-Lin
Author-X-Name-Last: Liu
Title: Fear index and freight rates in dry-bulk shipping markets
Abstract: 
 This study constructs a fear index for the dry-bulk shipping market. Principal component analysis and min-max scaling are employed to extract the fear sentiment of the four dry-bulk vessel sectors. The main findings are as follows: (1) the fear index could play as a contrarian predictor of the freight rate; (2) the fear index spiked sharply responding to the major financial risk events; (3) ship operators are less risk-averse than investors in financial markets, so the asymmetric effect of the fear index on the freight-rate return is unique; and (4) the fright-rate volatility is positively affected by the fear index, and the asymmetry varies by the vessel sizes. These findings demonstrate that the fear index increases the predictability of freight rate, and helps investors to measure the level of risk or stress in the market.
Journal: Applied Economics
Pages: 1235-1248
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1827140
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827140
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1235-1248




Template-Type: ReDIF-Article 1.0
Author-Name: Chaohua He
Author-X-Name-First: Chaohua
Author-X-Name-Last: He
Author-Name: Guangchen Li
Author-X-Name-First: Guangchen
Author-X-Name-Last: Li
Author-Name: Hai Fan
Author-X-Name-First: Hai
Author-X-Name-Last: Fan
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: Correlation between Shanghai crude oil futures, stock, foreign exchange, and gold markets: a GARCH-vine-copula method
Abstract: 
 The relationship between markets has always been a topic of heated debate among scholars from various countries. One of the most important concerns is the need to model the relationships between the crude oil market and other markets. Based on daily return observations from 2018 to 2019, we apply a GARCH-vine-copula approach to probe the linkage between Shanghai crude oil futures, stock, foreign exchange, and gold markets. We find that obvious tail dependencies do exist between these markets. And the crude oil futures market occupies a dominant position. Moreover, when the Shanghai crude oil futures market is taken as the known condition, the links between different markets reduce to some extent. Finally, value at risk results denote that the risk of the Shanghai crude oil futures market is relatively high, but portfolio investment can effectively reduce the risk. Moreover, the model fitting results at different confidence levels have passed the Kupiec backtest, indicating that the model in this paper fits the relationship between these markets well.
Journal: Applied Economics
Pages: 1249-1263
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828566
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828566
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1249-1263




Template-Type: ReDIF-Article 1.0
Author-Name: Hyoyoung Kim
Author-X-Name-First: Hyoyoung
Author-X-Name-Last: Kim
Author-Name: Jinkwon Lee
Author-X-Name-First: Jinkwon
Author-X-Name-Last: Lee
Title: Distributive fairness and the social responsibility of the representative of a group
Abstract: 
 Using an ultimatum game experiment where a representative makes a decision on behalf of the group members and equally shares the outcomes with them, we investigate whether the representative’s social responsibility exists and has a systematic relationship with his or her individual distributive fairness. The experimental results show that the representative of a respondent group tends to change his or her individual willingness to accept due to social responsibility. More importantly, we find that the minimum fairness of other members in the group tends to be the representative’s group standard for aggregating fairness, and that representatives whose individual fairness is higher [lower] than the minimum fairness of other members has a strong [negligible] tendency to incorporate their group members’ fairness preferences. According to our conceptual framework, this tendency can be only consistent with a positive correlation between the representative’s social responsibility and his or her individual distributive fairness. The results suggest that an incentive mechanism for a representative making a public decision would need to consider such a positive correlation between his or her social responsibility and distributive fairness.
Journal: Applied Economics
Pages: 1264-1279
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828805
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828805
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1264-1279




Template-Type: ReDIF-Article 1.0
Author-Name: El Mostafa Bentour
Author-X-Name-First: El Mostafa
Author-X-Name-Last: Bentour
Title: On the public debt and growth threshold: one size does not necessarily fit all
Abstract: 
 In a time of high debt and sluggish economic growth, the Reinhart and Rogoff (2010) conjecture of a common 90% debt threshold for advanced economies triggered a controversial debate among economists and policy-makers. We analyse the relationship between public debt and economic growth for a sample of 20 advanced economies over the period of 1880–2010, using a regression kink model with an unknown threshold proposed by Hansen (2017). We show that the relationship between public debt and economic growth is time-varying and state-dependent. Particularly, the public debt and economic growth relationship is instable for each country in the sample across the whole period of 1880–2010, and the postwar period of 1950–2010, and subject to data and country heterogeneities. These findings reject the existence of any common threshold fitting all countries and call for more theory-based models that take into account fundamentals that vary between countries and impact debt–growth interactions.
Journal: Applied Economics
Pages: 1280-1299
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828806
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828806
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1280-1299




Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Aldieri
Author-X-Name-First: Luigi
Author-X-Name-Last: Aldieri
Author-Name: Bruna Bruno
Author-X-Name-First: Bruna
Author-X-Name-Last: Bruno
Author-Name: Concetto Paolo Vinci
Author-X-Name-First: Concetto Paolo
Author-X-Name-Last: Vinci
Title: A multi-dimensional approach to happiness and innovation
Abstract: 
 In this paper, we start to address the lack of research into the relationship between innovation and subjective wellbeing (SWB). We focus on four channels by which innovation may influence SWB, namely income, use of ICT technologies, inequality and unemployment, synthesizing them into a conceptual framework. This framework constitutes the foundation for our theoretical model and empirical investigation of the relationship between innovation and SWB. As previous literature shows, the impact of innovation on SWB through these four channels is mostly negative. Analysis of panel data from eight European countries over the period 1980–201$ on the effects of technological innovation, measured in terms of patents, on population wellbeing confirms the negative impact of innovation on SWB. The analysis has policy implications, because it provides improved estimates of the contribution of innovation to collective wellbeing.
Journal: Applied Economics
Pages: 1300-1310
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828807
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828807
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1300-1310




Template-Type: ReDIF-Article 1.0
Author-Name: Dayong Dong
Author-X-Name-First: Dayong
Author-X-Name-Last: Dong
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Author-Name: Zhou Lu
Author-X-Name-First: Zhou
Author-X-Name-Last: Lu
Author-Name: Cheng Yan
Author-X-Name-First: Cheng
Author-X-Name-Last: Yan
Title: Personal consumption in the United States during the COVID-19 crisis
Abstract: 
 Using daily credit/debit card spending data for personal consumption expenditures for the period from 24 January 2020 to 10 June 2020, this paper shows that personal consumption expenditures in the United States have been significantly affected by the economic shocks in the COVID-19 era. The evidence is valid when we consider the data both at the national and state levels. The evidence is also valid when we use the data for consumers at different income levels and consumption within different sectors. The only exception is consumption in grocery and food stores since the effect is dampened at the national level and in 31 of 51 states.
Journal: Applied Economics
Pages: 1311-1316
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828808
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828808
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1311-1316




Template-Type: ReDIF-Article 1.0
Author-Name: David Havrlant
Author-X-Name-First: David
Author-X-Name-Last: Havrlant
Author-Name: Abdulelah Darandary
Author-X-Name-First: Abdulelah
Author-X-Name-Last: Darandary
Author-Name: Abdelrahman Muhsen
Author-X-Name-First: Abdelrahman
Author-X-Name-Last: Muhsen
Title: Early estimates of the impact of the COVID-19 pandemic on GDP: a case study of Saudi Arabia
Abstract: 
 The COVID-19 pandemic has affected economic sectors in a very heterogeneous way. In the early stages of the economic lockdown, only limited economic data, if any, related to the event were available. With the government’s discretionary measures to contain the infection, it became obvious that some sectors will suffer more than others. We have used this information within the input-output framework to calibrate demand shocks to individual sectors and to obtain early estimates of the impact on sectoral and overall GDP. Given the high level of uncertainty, we designed three scenarios, reflecting the severity of the shock, its sectoral distribution, and the time needed for recovery, and applied to the Saudi economy. The negative impact on headline GDP in 2020 is estimated to range from −4.8% to −9.8% compared to the baseline level, while the government’s fiscal countermeasures result in a positive effect of some 2.5% in real GDP. The study also shows how to accommodate a qualitative shift in economic conditions given the still-evolving pandemic. We consider the potential situation of a second wave of the infection that would enforce a protracted lockdown and imply second-round effects.
Journal: Applied Economics
Pages: 1317-1325
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828809
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828809
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1317-1325




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Sang Hoon Kang
Author-X-Name-First: Sang Hoon
Author-X-Name-Last: Kang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Spillovers and portfolio optimization of agricultural commodity and global equity markets
Abstract: 
 We investigate the portfolio allocation and risk contribution characteristics of agricultural commodities, and the volatility spillovers between agricultural commodities and global and regional equity markets. We draw our results by applying a directional spillover index and a nonlinear portfolio optimization method. We find that the largest transmission and reception of spillovers occur among wheat, corn and soybeans, and between sugar cane and sugar beets. All global and regional stock market indices considered most largely spillover on cotton and cocoa. The global and Americas stock market indices are most largely spillovered by corn and soybeans. Also, while the European stock market index is most largely spillovered by cotton, the Asia Pacific stock market index is most largely spillovered by wheat and coffee. The portfolio optimization shows that sugar cane, followed by wheat and corn, are the largest risk contributors to total portfolio risk, whereas, cocoa, followed by lumber and cotton, are the lowest risk contributors to total portfolio risk. Cocoa and lumber are the most desirable for investment. Implications of the results are discussed.
Journal: Applied Economics
Pages: 1326-1341
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1830937
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1830937
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1326-1341




Template-Type: ReDIF-Article 1.0
Author-Name: Marina Ehab
Author-X-Name-First: Marina
Author-X-Name-Last: Ehab
Author-Name: Chahir R. Zaki
Author-X-Name-First: Chahir R.
Author-X-Name-Last: Zaki
Title: Global value chains and service liberalization: do they matter for skill-upgrading?
Abstract: 
 This study attempts to assess the effect of Global Value Chains (GVCs) and service liberalization on skill-upgrading. It provides a bridge between two active literatures on GVCs and service liberalization. Using comprehensive firm-level data from the World Bank Enterprise Survey, the contribution of this paper is twofold. First, it focuses on the effect of GVC integration on skill-upgrading in the presence of service restrictions. Second, it uses firm-level data on 141 developing economies. Our main findings suggest that integration in GVC results in skill-upgrading whilst service trade restrictions are associated with skill-downgrading. We argue that more restricted services weaken the channels by which GVC stimulates the process of skill-upgrading. Therefore, skill-upgrading resulting from GVC participation is more pronounced when services are liberalized. Our results remain robust to any change in the measure of service protection, the measure of skill-upgrading and when we control for the endogeneity of GVCs.
Journal: Applied Economics
Pages: 1342-1360
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1830938
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1830938
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1342-1360




Template-Type: ReDIF-Article 1.0
Author-Name: Suqin Ge
Author-X-Name-First: Suqin
Author-X-Name-Last: Ge
Author-Name: Andrea Moro
Author-X-Name-First: Andrea
Author-X-Name-Last: Moro
Author-Name: Beibei Zhu
Author-X-Name-First: Beibei
Author-X-Name-Last: Zhu
Title: Testing for asymmetric employer learning and statistical discrimination
Abstract: 
 We test if firms statistically discriminate workers based on race when employer learning is asymmetric. Using data from the NLSY79, we find evidence of asymmetric employer learning. In addition, employers statistically discriminate against non-college-educated black workers at time of hiring. We also find that employers directly observe most of the productivity of college graduates at hiring and learn very little over time about these workers.
Journal: Applied Economics
Pages: 1361-1377
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1830939
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1830939
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1361-1377




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Thiem
Author-X-Name-First: Stefan
Author-X-Name-Last: Thiem
Title: Spillover Effects in Contests with Heterogeneous Players - Evidence from European Football
Abstract: 
 This paper analyzes spillover effects from previous matches against the future champion of a league. Using data from 78,264 European football games, the empirical results from a matching method show that favourites in the current match gain significantly fewer points after a match against the future league champion. By contrast, underdogs benefit from such a match, as they gain significantly more points. By considering shadow effects in the analysis, these results suggest that favourites put more effort into the match against the future champion and lower their effort level in the next match, which explains the negative spillover effects. As there are no significant shadow effects for underdogs, the positive spillover effects might be caused by positive ‘learning-by-doing’ effects. A subsequent logit regression using betting odds as control variables confirms the existence of the observed spillover effects.
Journal: Applied Economics
Pages: 1378-1394
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1830940
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1830940
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1378-1394




Template-Type: ReDIF-Article 1.0
Author-Name: Salah A. Nusair
Author-X-Name-First: Salah A.
Author-X-Name-Last: Nusair
Author-Name: Dennis O. Olson
Author-X-Name-First: Dennis O.
Author-X-Name-Last: Olson
Title: Testing Wagner’s law versus the Keynesian hypothesis for GCC countries
Abstract: 
 This paper examines the relationship between real GDP and government spending for the six Gulf Cooperation Council (GCC) countries. Linear Granger causality tests in the time and frequency domains provide moderate support for Wagner’s law in four countries and weak support for the Keynesian model in two countries. In contrast, asymmetric nonlinear causality tests in the frequency domain support Wagner’s law in five countries, while some form of the Keynesian hypothesis is valid in all six GCC countries. Our results illustrate the importance of using nonlinear, asymmetric models to examine causal relationships.
Journal: Applied Economics
Pages: 1395-1417
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1832196
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1832196
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1395-1417




Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Cerulli
Author-X-Name-First: Giovanni
Author-X-Name-Last: Cerulli
Author-Name: Marco Ventura
Author-X-Name-First: Marco
Author-X-Name-Last: Ventura
Title: A dose–response approach to evaluate the effects of different levels of partial credit guarantees
Abstract: 
 Credit Guarantee Schemes (CGSs) issue partial guarantees to cope with financial instability and moral hazard problems on the part of the borrowing firms. Our paper focuses on the magnitude of partial coverage ratios, proposing and applying a dose–response model to identify both the minimum (below which guarantees are not effective) and optimal (the one maximizing the guarantees effectiveness) magnitude. Consistently with theoretical prescriptions, an inverted U-shaped relationship is found for a sample of Italian firms, with the maximum of the effectiveness around 70% and no effects below 55% and above 80%. Our approach and findings seem useful to support policy makers in fine-tuning CGS policy.
Journal: Applied Economics
Pages: 1418-1434
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1834499
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1834499
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1418-1434




Template-Type: ReDIF-Article 1.0
Author-Name: Yann Braouezec
Author-X-Name-First: Yann
Author-X-Name-Last: Braouezec
Author-Name: Keyvan Kiani
Author-X-Name-First: Keyvan
Author-X-Name-Last: Kiani
Title: Target capital ratio and optimal channel(s) of adjustment: a simple model with empirical applications to European banks
Abstract: 
 Why do banks decide to reach their target capital ratio by selling assets and/or issuing new shares? To answer this question, we offer a simple framework in which each channel of adjustment is costly; underwriting and dilution costs for equity issuance, profit reduction and price impact for asset sale. We make the assumption that the aim of the bank is to minimize the total adjustment cost subject to the target’s constraint and we derive its optimal strategy. The solution is formulated in terms of two critical thresholds for which we give an explicit formula. We then compare our model’s predictions to the decisions taken by two European systemic banks (Deutsche Bank and UniCredit) to issue new shares in 2017 and for which the target ratio was publicly disclosed. We show that the predictions of the model are consistent with the observed decisions.
Journal: Applied Economics
Pages: 1435-1462
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1820442
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820442
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1435-1462




Template-Type: ReDIF-Article 1.0
Author-Name: Alin Marius Andrieș
Author-X-Name-First: Alin Marius
Author-X-Name-Last: Andrieș
Author-Name: Nicu Sprincean
Author-X-Name-First: Nicu
Author-X-Name-Last: Sprincean
Title: Cyclical behaviour of systemic risk in the banking sector
Abstract: 
 This paper examines cyclical behaviour of banks’ systemic risk contribution and exposure. Using a panel of 787 banks from country members of the Organization for Economic Co-operation and Development and the European Union covering the period 2000–2017, we document that both systemic risk contribution and exposure are positively related to business cycle. Systemic risk starts to accumulate in the financial sector during periods of boom when the output gap is positive. Furthermore, during periods of robust economic growth, the level of credit tends to increase dramatically, going hand in hand with asset and property prices developments. We also find that contribution and exposure to system-wide distress move procyclically during credit and house cycles, meaning that during upturns in credit and house cycles bank interconnectedness increases, but tend to fall during the downturns. However, individual risk of the banks evolves countercyclically during business and financial cycles.
Journal: Applied Economics
Pages: 1463-1497
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1822511
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1822511
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1463-1497




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Pilipiec
Author-X-Name-First: Patrick
Author-X-Name-Last: Pilipiec
Author-Name: Wim Groot
Author-X-Name-First: Wim
Author-X-Name-Last: Groot
Author-Name: Milena Pavlova
Author-X-Name-First: Milena
Author-X-Name-Last: Pavlova
Title: The causal influence of increasing the statutory retirement age on job satisfaction among older workers in the Netherlands
Abstract: 
 Since 2013, the Netherlands has gradually increased the statutory retirement age. We use a regression discontinuity design to analyse the effect of the increase in retirement age on overall job satisfaction and satisfaction with the organisation’s personnel policy. Date of birth was used as a sharp cut-off to assign workers to the intervention or comparison group. The increase had no effect on overall job satisfaction. An effect was only observed for satisfaction with the personnel policy in one of the groups analysed. Further, there was only a significant effect if the statutory retirement age was increased by seven months, but this relation was no longer significant when controlling for the difference in days between the date of birth and the cut-off.
Journal: Applied Economics
Pages: 1498-1527
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1827136
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827136
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1498-1527




Template-Type: ReDIF-Article 1.0
Author-Name: Refk Selmi
Author-X-Name-First: Refk
Author-X-Name-Last: Selmi
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Youssef Errami
Author-X-Name-First: Youssef
Author-X-Name-Last: Errami
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Is COVID-19 Related Anxiety an Accelerator for Responsible and Sustainable Investing ? A Sentiment Analysis
Abstract: 
 The excessive volatility generated by the COVID-19 pandemic highlights that environmental and social issues are potential elements that businesses and governments must manage effectively and swiftly. This study seeks to test whether the rising anxiety over this pandemic has affected the attitudes and choices towards environmentally and socially responsible investing. To this end, we first use machine learning tools to examine tweets related to this unprecedented and wild shock. Second, we compare the impact of these sentiments on the stock performance of companies from the S&P500 that meet environmental and social sustainability criteria for three COVID-19 phases with varying levels of anxiety, which we label incubation, fever and the increasing risk of second wave pandemic (in the absence of vaccine). Our findings reveal that the increasing uncertainty and worries over COVID-19 and its consequences has not distracted investors’ attention away from environmental and social issues, but companies with responsible strategies on environmental issues that specifically address climate responsibility are likely to be more responsive to sentiments at the current situation of emergency.
Journal: Applied Economics
Pages: 1528-1539
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1834501
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1834501
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1528-1539




Template-Type: ReDIF-Article 1.0
Author-Name: Sanna Huikari
Author-X-Name-First: Sanna
Author-X-Name-Last: Huikari
Author-Name: Marko Korhonen
Author-X-Name-First: Marko
Author-X-Name-Last: Korhonen
Title: Unemployment, global economic crises and suicides: evidence from 21 OECD countries
Abstract: 
 This study explores age- and gender-specific suicide mortality due to unemployment and economic crises, for 21 OECD countries over the period 1960 to 2011. The findings indicate that a higher unemployment rate leads to an increase in suicides in almost all age groups. Further, using dataset on economic/financial crisis events, results show that, in general, these crises increase suicide rates. However, the evidence also shows that economic crises have no effect on those in the 45 to 64 years age group in terms of suicides. Further, we assessed whether suicide mortality can be attributed to a ‘crisis effect’ beyond that of unemployment. For males, we found a significant joint effect between crises and unemployment. Finally, we investigated the possible nonlinear threshold response of suicides to unemployment. We found that suicides among young males (<45 years) are due to marked increases in unemployment in association with global economic crises.
Journal: Applied Economics
Pages: 1540-1550
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1838430
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1838430
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1540-1550




Template-Type: ReDIF-Article 1.0
Author-Name: Valentine Fays
Author-X-Name-First: Valentine
Author-X-Name-Last: Fays
Author-Name: Benoît Mahy
Author-X-Name-First: Benoît
Author-X-Name-Last: Mahy
Author-Name: François Rycx
Author-X-Name-First: François
Author-X-Name-Last: Rycx
Author-Name: Mélanie Volral
Author-X-Name-First: Mélanie
Author-X-Name-Last: Volral
Title: Wage discrimination based on the country of birth: do tenure and product market competition matter?
Abstract: 
 Using a merged employer-employee panel dataset of more than 13,000 firms relative to the Belgian private sector for the 1999–2010 period, this paper aims to quantify wage discrimination against migrant workers based on their countries of birth, with workers’ tenure and firm product market competition as moderating variables. To do so, we specify a wage-setting equation that includes a direct measure of worker productivity. We control for a wide range of worker and firm characteristics, as well as time-invariant unobserved heterogeneity in firms and potential endogeneity in the composition of the workforce. Our results show large disparities in wage discrimination against foreign-born migrants depending on their countries of birth. They also suggest that wage discrimination against migrants vanishes as their firm-specific labour market experience (i.e. tenure) increases and tends to disappear in highly competitive product market situations.
Journal: Applied Economics
Pages: 1551-1571
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1838431
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1838431
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1551-1571




Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Angel Martin-Valmayor
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Martin-Valmayor
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Manuel Monge Moreno
Author-X-Name-First: Manuel
Author-X-Name-Last: Monge Moreno
Author-Name: Luis Madariaga Becerra
Author-X-Name-First: Luis
Author-X-Name-Last: Madariaga Becerra
Title: Mean reversion in monetary aggregates in Chile
Abstract: 
 In this paper we examine the statistical properties of the monetary aggregates in Chile in order to know if the time series display mean reverting behaviour. For this purpose, we use techniques based on fractional integration. Monthly data of various Chilean monetary aggregates from January 1986 until August 2019 are used, and the results indicate very weak evidence of mean reversion. In fact, this property is only found in the case of the currency on circulation and M1 for some of the series examined; however, for M2 and M3 the results clearly show high persistence with orders of integration substantially higher than 1. Thus, shocks are expected to have a permanent nature in these cases. Another remarkable feature observed in the results is that the level of persistence in the series seems to grow with the amount of the monetary aggregate. In a multivariate context, performing a FCVAR model, evidence of cointegration is found among the monetary aggregates, finding a long run equilibrium relationship between them.
Journal: Applied Economics
Pages: 1572-1584
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1838433
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1838433
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1572-1584




Template-Type: ReDIF-Article 1.0
Author-Name: C Waddoups
Author-X-Name-First: C
Author-X-Name-Last: Waddoups
Title: The gap in employer-paid job training between non-Hispanic and Hispanic white workers
Abstract: 
 The study assesses the size and nature of the gap in incidence of employer-paid job training between Hispanic and non-Hispanic white workers. Using data on employer-paid training from the Survey of Income and Program Participation, Oaxaca/Blinder decompositions are estimated and analysed. The study finds that non-Hispanic white workers are more likely to engage in training than their Hispanic white counterparts, and that about half the difference in training incidence can be explained by average differences in educational attainment between the two groups. Besides educational attainment, being foreign born is another strong predictor of low training probabilities. The inability to explain a substantial part of the training gap suggests an economy-wide problem with human capital discrimination that leads to less job training among Hispanic whites compared to their non-Hispanic white counterparts. Policy efforts to increase formal education and reduce discriminatory behaviour both are consistent with the empirical findings.
Journal: Applied Economics
Pages: 1585-1597
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1840506
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1840506
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1585-1597




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Foote
Author-X-Name-First: Andrew
Author-X-Name-Last: Foote
Author-Name: Mark J. Kutzbach
Author-X-Name-First: Mark J.
Author-X-Name-Last: Kutzbach
Author-Name: Lars Vilhuber
Author-X-Name-First: Lars
Author-X-Name-Last: Vilhuber
Title: Recalculating ... : How Uncertainty in Local Labour Market Definitions Affects Empirical Findings
Abstract: 
 This paper evaluates the use of commuting zones as a local labour market definition. We revisit the seminal paper by Tolbert and Sizer and demonstrate the sensitivity of definitions to two features of the methodology: a cluster dissimilarity cut-off, or the count of clusters, and uncertainty in the input data. We show how these features impact empirical estimates using a standard application of commuting zones and an example from related literature. We conclude with advice to researchers on how to demonstrate the robustness of empirical findings to uncertainty in the definition of commuting zones.
Journal: Applied Economics
Pages: 1598-1612
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841083
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841083
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1598-1612




Template-Type: ReDIF-Article 1.0
Author-Name: Jiyoung Kim
Author-X-Name-First: Jiyoung
Author-X-Name-Last: Kim
Author-Name: Satoshi Nakano
Author-X-Name-First: Satoshi
Author-X-Name-Last: Nakano
Author-Name: Kazuhiko Nishimura
Author-X-Name-First: Kazuhiko
Author-X-Name-Last: Nishimura
Title: The role of ICT productivity in Korea-Japan multifactor CES productions and trades
Abstract: 
 In this paper, we examine the economic impact of information and communication technology (ICT) innovation, within a general equilibrium framework of empirically estimated constant-elasticity-of-substitution (CES) production frontiers. Such innovation generates not only productivity growth and price changes, but it also triggers changes in the economic structure of production and trade patterns. This process ostensibly increases the social welfare. To study the impact of ICT innovation, we construct a bilateral general-equilibrium model that spans 350 commodities and sectors of trade between Japan and the Republic of Korea. We estimate all CES parameters from published statistics, including linked input–output tables and Comtrade databases. A small exogenous productivity shock in the ICT is examined in terms of potential price reductions of all commodities in both countries.
Journal: Applied Economics
Pages: 1613-1627
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841084
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841084
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1613-1627




Template-Type: ReDIF-Article 1.0
Author-Name: Julien Cadot
Author-X-Name-First: Julien
Author-X-Name-Last: Cadot
Author-Name: Amir Rezaee
Author-X-Name-First: Amir
Author-X-Name-Last: Rezaee
Author-Name: Rebecca Benaïs Chemama
Author-X-Name-First: Rebecca
Author-X-Name-Last: Benaïs Chemama
Title: Earnings management and derivatives reporting: evidence from the adoption of IFRS standards in Europe
Abstract: 
 Although the new IFRS standards are considered an improvement for financial transparency, derivatives reporting remains subject to criticism by professional observers due to its complexity. Indeed, derivatives reporting could easily be used for earnings management. In this article, we analyse half a dozen earnings management proxies before and after the mandatory adoption of a battery of IFRS standards in 2013 and 2014 by European firms. Among others, IFRS 13 and IFRS 11 featured impactful requirements for the financial reporting of listed companies. Our results show that following the adoption of these standards, earnings management has faded except for firms using derivatives. These results suggest that the 2013–2014 IFRS standards package has improved the accounting quality of European-listed firms but that the flexibility and lack of guidance in the new standards regarding derivatives reporting are used by managers to manage earnings.
Journal: Applied Economics
Pages: 1628-1637
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841085
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841085
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1628-1637




Template-Type: ReDIF-Article 1.0
Author-Name: Harry Anthony Patrinos
Author-X-Name-First: Harry Anthony
Author-X-Name-Last: Patrinos
Author-Name: George Psacharopoulos
Author-X-Name-First: George
Author-X-Name-Last: Psacharopoulos
Author-Name: Aysit Tansel
Author-X-Name-First: Aysit
Author-X-Name-Last: Tansel
Title: Private and Social Returns to Investment in Education: the Case of Turkey with Alternative Methods
Abstract: 
 This paper estimates private and social returns to investment in education in Turkey, using the 2017 Household Labour Force Survey (latest available at the time of writing) and alternative methodologies. The analysis uses the 1997 education reform of increasing compulsory education by three years as an instrument. This results in a private rate of return on the order of 16% for higher education and a social return of 10%. Using the number of children younger than age 15 in the household as an exclusion restriction, sample selection correction is applied, and it shows that the returns to education for females are higher than those for males. Contrary to many findings in other countries, private returns to those working in the public sector are higher than those in the private sector, and private returns to those who followed the vocational track in secondary education are higher than those in the general academic track. The paper discusses the policy implications of the findings.
Journal: Applied Economics
Pages: 1638-1658
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841086
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841086
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1638-1658




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Cellini
Author-X-Name-First: Roberto
Author-X-Name-Last: Cellini
Author-Name: Tiziana Cuccia
Author-X-Name-First: Tiziana
Author-X-Name-Last: Cuccia
Title: Female workforce participation and household expenditure for culture and recreation: macroeconomic evidence from the Italian regions
Abstract: 
 This study evaluates the effects of labour force participation on the share of private expenditure for cultural and recreational goods and services. We consider a panel of macroeconomic data, coming from the 20 Italian regions observed over the period 1995–2015. We document that female participation rate positively and significantly affects the share of household consumption devoted to culture and entertainment. The effect of male labour participation rate appears to be less clear-cut. We propose some theoretical and empirical considerations, to investigate the bases and the policy implications of such gender asymmetry.
Journal: Applied Economics
Pages: 1659-1671
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841087
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841087
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1659-1671




Template-Type: ReDIF-Article 1.0
Author-Name: Xiao-Li Gong
Author-X-Name-First: Xiao-Li
Author-X-Name-Last: Gong
Author-Name: Xiong Xiong
Author-X-Name-First: Xiong
Author-X-Name-Last: Xiong
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Title: Shadow banking, monetary policy and systemic risk
Abstract: 
 This article aims to analyse the dissimilation effect of shadow banking on monetary policy and to judge the cyclical characteristics of shadow banking. Further, we analyse the dynamic response of shadow banking to financial risk shocks and regulatory shocks, and examine the influence of shadow banking on the transmission path of systemic risks, so as to provide theoretical bases for financial supply-side structural reforms in the context of high-quality development. To this end, this article constructs the multi-sector DSGE model that includes the shadow banking sector and the commercial banking sector that subjects to multiple credit regulatory constraints. And then the five-variable VAR model is used to conduct empirical tests. Empirical research has found that Chinese-style shadow banking exhibits countercyclical characteristics, and the existence of shadow banking reduces the transmission effectiveness of credit channel. Numerical simulation analysis finds that positive interest rate shocks would trigger the expansion of shadow banks and increase leverage, while reducing the credit leverage of commercial banks. Technological impacts such as financial technology have reduced loan premiums and have played a role in multi-channel evacuation of risk accumulation from the perspective of inclusive finance.
Journal: Applied Economics
Pages: 1672-1693
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841088
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841088
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1672-1693




Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: The non-parametric analysis of wage distortion based on ability in the Chinese labour market
Abstract: 
 This study analyzes wage distortion based on ability in the Chinese labour market using a non-parametric approach. We first propose a signalling model by adding regressive wage incentives to describe the non-competitive Chinese labour market. Then, we show that the model primitives are non-parametrically identified and estimable using recently proposed measurement-error methodologies. Using a dataset from the China Health and Nutrition Survey, we provide empirical evidence that wages are mainly lower for a large number of workers compared with their ability levels, especially for female workers with medium ability levels.
Journal: Applied Economics
Pages: 1694-1715
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841883
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841883
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1694-1715




Template-Type: ReDIF-Article 1.0
Author-Name: Sean Eric Mulholland
Author-X-Name-First: Sean Eric
Author-X-Name-Last: Mulholland
Title: Covid-19 prevalence and empty college seats
Abstract: 
 Using the National Association for College Admission Counselling’s annual list of colleges with open seats and Covid-19 cases and deaths at the county level, this paper provides a first look at how Covid-19 has altered enrolment at four-year colleges. I find that a one standard deviation increase in deaths per 100,000 is associated with a 61% increase in the probability that a school reports available seats, housing, and aid for first-year students. For a one standard deviation increase in cases per 100,000, schools are 53% more likely to report openings. For a one standard deviation increase in the growth rate of deaths and cases, schools are 45 and 56%, respectively, more likely to report openings. These openings are not driven by the fact that many Covid-19 hot spots in March and April of 2020 are also home to schools with higher tuition and fees, a high share of out-of-state or international students, and more progressive political leanings.
Journal: Applied Economics
Pages: 1716-1728
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841884
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841884
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1716-1728




Template-Type: ReDIF-Article 1.0
Author-Name: Peng Li
Author-X-Name-First: Peng
Author-X-Name-Last: Li
Author-Name: Xiangrong Li
Author-X-Name-First: Xiangrong
Author-X-Name-Last: Li
Author-Name: Gonglin Yuan
Author-X-Name-First: Gonglin
Author-X-Name-Last: Yuan
Author-Name: Maojun Zhang
Author-X-Name-First: Maojun
Author-X-Name-Last: Zhang
Title: A numerical optimization pesudo-algorithm for two-player zero-sum stochastic games
Abstract: 
 A two-player, zero-sum stochastic game with two variables $$(z,v)$$(z,v) can be transformed into the coupled control PDEs by a transition probability matrix of the Markov chain. There exist two control variables $${\varsigma _i}$$ςi and two tensity rates $${\mu _i}$$μi ($$i = 1,2$$i=1,2) after the transformation that should be solved for. Yuan and Li (Computational Economics, 2018) give a numerical algorithm by the first-order necessary condition, which overcomes several drawbacks of the normal algorithm and describe several numerical experiments demonstrating the performance of their method. However, their method exhibits at least one shortcoming, which is that the final value of the control variables $${\varsigma _i}$$ςi ($$i = 1,2$$i=1,2) may exceed the definition domain. This situation means that the $${\varsigma _i}$$ςi ($$i = 1,2$$i=1,2) is infeasible and unacceptable. This paper presents a new technique to avoid that situation, and an optimization pseudo-algorithm is designed using the following steps: (i) starting from the given initial points $$(\varsigma _i^0,\mu _i^0),$$(ςi0,μi0), an active-set algorithm is proposed; (ii) the limited memory update technique is used in the algorithm to obtain fast convergence and low storage; (iii) global convergence is established under suitable conditions; and (iv) numerical results are reported to demonstrate that the new algorithm is competitive with the normal algorithm.
Journal: Applied Economics
Pages: 1729-1742
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1845294
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1845294
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1729-1742




Template-Type: ReDIF-Article 1.0
Author-Name: Jiaochen Liang
Author-X-Name-First: Jiaochen
Author-X-Name-Last: Liang
Author-Name: Qin Fan
Author-X-Name-First: Qin
Author-X-Name-Last: Fan
Author-Name: Yong Hu
Author-X-Name-First: Yong
Author-X-Name-Last: Hu
Title: Dynamic relationships between commodity prices and local housing market: evidence for linear and nonlinear causality
Abstract: 
 This research examines the relationship between agricultural commodity prices and the local housing market. Previous literature focuses on the unidirectional impacts from commodity prices to the local economy, but we propose that in some cases local asset markets can also influence commodity prices due to the agglomeration of commodity productions and the linkages of financial markets, and thus the causalities between them can be bilateral. In addition, according to a new regional economic model that we develop about local asset market and commodity price shocks, we further predict the causalities between the commodity prices and the local house price are nonlinear. We test these hypotheses using data of the major agricultural commodities of an agriculturally focused region – California Central Valley area. The results are consistent with our expectations: there is no evidence for linear causalities between the price returns of these agricultural commodities and the local housing market, but the nonlinear Granger causalities between them are significant.
Journal: Applied Economics
Pages: 1743-1755
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1845295
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1845295
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1743-1755




Template-Type: ReDIF-Article 1.0
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Eduardo Dacillo Roca
Author-X-Name-First: Eduardo Dacillo
Author-X-Name-Last: Roca
Title: Weathering financial crisis in China: the role of global market integration
Abstract: 
 We test the hypothesis that the integration of China into the global financial system, as a consequence of domestic market reforms, reduced the effectiveness of intervention efforts during the stock market crises. Using an event study methodology in tandem with the DCC GARCH and Markov Regime Switching models, we investigate whether the interventions were able to address the decline in market returns and volatility during the 2008 and 2015 stock market collapses. Results show that the 2015 measures were ineffective compared to the 2008 ones and that the increasing global integration of the Chinese market played a significant role in their failure. This study is the first of its kind and the results have important implications for policymakers, given the vital position of China in the international economy.
Journal: Applied Economics
Pages: 1756-1776
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1849535
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1849535
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1756-1776




Template-Type: ReDIF-Article 1.0
Author-Name: Malissa Davis
Author-X-Name-First: Malissa
Author-X-Name-Last: Davis
Author-Name: Richard Cebula
Author-X-Name-First: Richard
Author-X-Name-Last: Cebula
Author-Name: Robert Boylan
Author-X-Name-First: Robert
Author-X-Name-Last: Boylan
Title: A Further Inquiry into Factors that Influence Federal Personal Income Tax Evasion in the U.S.
Abstract: 
 This study identifies factors that may have influenced the degree of aggregate federal personal income tax evasion in the U.S. An established tax evasion model is updated to include the most recent data available and augmented with the addition of heretofore neglected or overlooked explanatory variables. To measure the degree of aggregate tax evasion behaviour, we adopt the percentage of personal taxable income that was unreported to the IRS by using official time series data for the years 1980 through 2016. We incorporate previously resilient variables such as the federal tax rate, the unemployment rate, the audit rate of filed returns by IRS personnel, the penalty interest rate on detected tax evasion, and a measure of real income growth into our study. Each has a statistically significant impact on the degree of aggregate federal personal income tax evasion, consistent with prior literature. As an extension of the literature, we find compelling evidence that age, gender, the average effective state income tax rate, and the percentages of federal personal income tax returns that include Schedule C and/or Schedule A are additional variables that have been largely ignored in previous related studies but appear to have impacted tax evasion behaviour.
Journal: Applied Economics
Pages: 1777-1787
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1851648
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1851648
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1777-1787




Template-Type: ReDIF-Article 1.0
Author-Name: Leo de Haan
Author-X-Name-First: Leo
Author-X-Name-Last: de Haan
Author-Name: Sarah Holton
Author-X-Name-First: Sarah
Author-X-Name-Last: Holton
Author-Name: Jan Willem van den End
Author-X-Name-First: Jan Willem
Author-X-Name-Last: van den End
Title: The impact of central bank liquidity support on banks’ sovereign exposures
Abstract: 
 We empirically analyse the relationship between longer term central bank liquidity support and banks’ exposures to governments, using difference-in-differences panel regressions and propensity score matching on a large sample of banks in the euro area. The research question is whether the liquidity operations, which were introduced to prevent disorderly deleveraging, can also be linked to unintended changes in banks’ asset allocations, in particular to carry trades in government bonds. The results show that unconditional and conditional refinancing operations have a different effect on banks’ government exposures. Unconditional longer-term refinancing operations went together with more carry trades in stressed countries, i.e. banks borrowing more while increasing their holdings of government bonds. In contrast, refinancing operations that were conditional on banks’ lending were not associated with such carry trades, highlighting the benefits of conditionality attached to long-term refinancing operations.
Journal: Applied Economics
Pages: 1788-1806
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1853667
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1853667
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1788-1806




Template-Type: ReDIF-Article 1.0
Author-Name: Jaana Rahko
Author-X-Name-First: Jaana
Author-X-Name-Last: Rahko
Title: R&D internationalization and firm productivity. Does the host country matter?
Abstract: 
 The prior literature has established that the internationalization of corporate R&D is motivated by access to new markets and technological knowledge. However, the empirical literature has overlooked whether the market and technological characteristics of R&D host countries influence the firm-level productivity gains from international R&D. This study empirically examines whether international R&D activities affect the productivity of European multinational firms. Estimating an R&D augmented production function shows that the output elasticity of R&D depends positively on the share of international R&D activities. The analysis further shows that the improvements are associated only with offshore R&D in host countries that have experienced fast economic growth or that are technologically stronger than firms’ home country.
Journal: Applied Economics
Pages: 1807-1825
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1853668
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1853668
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1807-1825




Template-Type: ReDIF-Article 1.0
Author-Name: Veikkopekka Silvasti
Author-X-Name-First: Veikkopekka
Author-X-Name-Last: Silvasti
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: Janne Äijö
Author-X-Name-First: Janne
Author-X-Name-Last: Äijö
Title: Is smart beta investing profitable? evidence from the Nordic stock market
Abstract: 
 This study examines the profitability of the mixing and integrating approach for constructing multi-factor smart beta portfolios. While most studies explore this issue in a U.S. market setting, this is the first study that exclusively focus on the Nordic equity market, which exhibits some unique and stylized features as recently highlighted in the literature. Our findings indicate first strong evidence for return variations for sorting stocks on value-, momentum-, and ex-ante beta-signals. Surprisingly, variations in payoffs are not only small stock phenomena in the Nordic equity markets. While the current literature does not yet agree on a consensus, our study supports the literature documenting the superiority of the integrating approach. Our results challenge the efficient market hypothesis in a market environment offering a high-level of information-flow-efficiency.
Journal: Applied Economics
Pages: 1826-1839
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1853669
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1853669
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1826-1839




Template-Type: ReDIF-Article 1.0
Author-Name: J. Stephen Ferris
Author-X-Name-First: J. Stephen
Author-X-Name-Last: Ferris
Author-Name: Marcel-Cristian Voia
Author-X-Name-First: Marcel-Cristian
Author-X-Name-Last: Voia
Title: Elections, economic outcomes and policy choices in Canada: 1870 – 2015
Abstract: 
 In this paper we examine the relationship between economic and electoral outcomes in Canada since Confederation (1867) and the role that economic policy has played in influencing this relationship. The results are consistent with voter concern for the overall performance of the economy in the incumbent’s governing term – the average growth rate of per capita GDP and average unemployment rate – while rejecting the presence of a political business cycle. Evidence of an effect of performance on the stability of the political party system (as measured by party vote volatility) is even stronger. The results also suggest that economic policy has only indirect effects on election outcomes, the most direct being the destabilizing influence of tax increases on party structure. The data also are consistent with the use of policy for countercyclical stability (primarily through spending and deficits), fiscal response to voter turnout, the growth of both spending and deficits under larger governing majorities and compliant monetary response to fiscal deficits.
Journal: Applied Economics
Pages: 1840-1855
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1853670
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1853670
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1840-1855




Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Title: Unkind roll of the dice: drivers of lottery crimes in the United States
Abstract: 
 Using data on U.S. states, this paper studies the factors driving lottery-related crimes, focusing on spillovers from other gambling and corruption. Although state-sponsored lotteries have become quite popular in the United States in recent years, formal research on their causes is rather limited. Results show corruption to increase lottery-related crimes, while higher lottery prize money and greater economic prosperity have the opposite effect. We find crowding out from electronic gaming machines. However, competition from Native American casinos or casino gambling crimes does not significantly impact lottery crimes.
Journal: Applied Economics
Pages: 1856-1866
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854446
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854446
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1856-1866




Template-Type: ReDIF-Article 1.0
Author-Name: Felipe Garcia Ribeiro
Author-X-Name-First: Felipe Garcia
Author-X-Name-Last: Ribeiro
Author-Name: André Portela Souza
Author-X-Name-First: André Portela
Author-X-Name-Last: Souza
Author-Name: André Carraro
Author-X-Name-First: André
Author-X-Name-Last: Carraro
Title: Rural electrification and agricultural family time allocation decisions
Abstract: 
 This article investigates the effects of electricity on time allocation in labour market and subsistence activities among adults, adolescents and children living in households in Brazilian rural areas. It explores the eligibility rule of a large-scale public policy programme on access to electricity in rural areas as an instrumental variable. Using the microdata from 2000 to 2010 Demographic Census, it finds that the access to electricity increases the time devoted to subsistence and decreases the time spent in the labour market among all members of agricultural families. These effects are stronger among female individuals. Also, it shows an increase in school attendance among children and male adolescents. There is no schooling effect among female adolescents. Finally, placebo exercises for urban areas suggest that instrumental variable is indeed capturing the effect of the program.
Journal: Applied Economics
Pages: 1867-1885
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854447
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854447
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1867-1885




Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Farrell
Author-X-Name-First: Lisa
Author-X-Name-Last: Farrell
Author-Name: Jane M. Fry
Author-X-Name-First: Jane M.
Author-X-Name-Last: Fry
Author-Name: Tim R.L. Fry
Author-X-Name-First: Tim R.L.
Author-X-Name-Last: Fry
Title: Who trusts the bank of England and high street banks in Britain?
Abstract: 
 Following the global financial crisis (GFC) of 2008 there was recognition that client trust in financial institutions had been damaged. While institutional trust has become an accepted barometer, less is known about who trusts the banking and finance sector. This paper investigates the individual characteristics associated with trust for the Bank of England (BoE) and high street banks in Britain. Importantly, we consider this question in the context of a point in time, namely 2014. This is an important case study as it is some years after the initial impact of the GFC yet prior to the referendum vote for Britain to exit the European Union (Brexit) and coincides with the Scottish referendum. Our results suggest that the characteristics associated with trust in the BoE differ from those associated with trust in high street banks and other financial institutions. Specifically, older people, more educated people and people residing in London show higher levels of trust in the BoE. In terms of trust in the sector overall, we also find that positive perceptions on the availability of credit are correlated with higher levels of trust.
Journal: Applied Economics
Pages: 1886-1898
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854448
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854448
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1886-1898




Template-Type: ReDIF-Article 1.0
Author-Name: Hideaki Sakawa
Author-X-Name-First: Hideaki
Author-X-Name-Last: Sakawa
Author-Name: Naoki Watanabel
Author-X-Name-First: Naoki
Author-X-Name-Last: Watanabel
Author-Name: Geeta Duppati
Author-X-Name-First: Geeta
Author-X-Name-Last: Duppati
Author-Name: Robert Faff
Author-X-Name-First: Robert
Author-X-Name-Last: Faff
Title: Institutional ownership and corporate risk-taking in Japanese listed firms
Abstract: 
 Agency theory predicts that institutional ownership plays an important role in monitoring corporate risk-taking. This study examines this ownership-risk taking linkage in Japan over the period 2007 and 2019. We proxy risk through measures of idiosyncratic risk, total risk, and market beta. We show that (relational) foreign institutional shareholdings (do not) induce corporate risk-taking, thereby mitigating (preserving) the managerial ‘quiet life’ in Japanese corporations. Using 2SLS analysis, the roles of institutional shareholders are robust to endogeneity concerns. Finally, we also confirm robustness using alternative accounting-based risk proxies such as the standard deviation of Tobin’s Q and ROA. Our study implies that the monitoring of institutional shareholders is important in Japanese corporations whose top executives might be prone to seek a ‘quiet life’.
Journal: Applied Economics
Pages: 1899-1914
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854450
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854450
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1899-1914




Template-Type: ReDIF-Article 1.0
Author-Name: Saejoon Kim
Author-X-Name-First: Saejoon
Author-X-Name-Last: Kim
Title: Deep time series forecasting for enhanced index tracking
Abstract: 
 We consider the problem of enhanced index tracking whose objective is to construct a portfolio that maximizes the excess return and minimizes the tracking error between the returns of the tracking portfolio and a benchmark index. This problem is of considerable importance in the field of asset management as beating the market is known to be a notoriously difficult problem. We first identify the shortcomings inherent in the existing approaches to the problem, and then propose a general methodology to enhanced index tracking portfolio construction that moderates the degree of the shortcomings. Then, we present explicit construction schemes that utilize the latest advancements of the deep learning technology, and in particular, of long short-term memory networks that are designed to be efficacious for time series forecasting. Our proposed enhanced index tracking portfolios are empirically compared and contrasted with those of previously known proficient enhanced index tracking schemes over the benchmark of S&P 500. It is presented that our proposed portfolios outperform all other portfolios considered in this paper, and in particular, can beat the benchmark index substantially for a variety of cardinality constraint values tested.
Journal: Applied Economics
Pages: 1916-1934
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854451
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854451
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1916-1934




Template-Type: ReDIF-Article 1.0
Author-Name: Shailendra Kumar Rai
Author-X-Name-First: Shailendra
Author-X-Name-Last: Kumar Rai
Author-Name: Imlak Shaikh
Author-X-Name-First: Imlak
Author-X-Name-Last: Shaikh
Title: Does the performance of private investment in public equity firms behave differently in different life cycles?
Abstract: 
 Private investment in public equity firms (PIPE) is growing exponentially across the globe, and most of the theoretical and empirical works are accessible for the U.S. and European settings. There is a lack of studies in emerging markets like India. Our empirical research consists of 810 public equity (PE) transactions, out of which 761 are PIPE deals for the period 1998–2016. The study aims to investigate whether PIPE deals show different performance in different life cycles as distinct stages and operating targets. Under the hypothesis of information asymmetry and financial distress, we find that PIPE issuance significantly impacts sales growth, returns on equity, and operating performance. It is evident that the growth stage shows an adverse impact on future sales growth and profitability while it's encouraging for return on equity. Our findings based on the firm's life cycle show that maturity and stagnant stage reveal pronounced effects. Moreover, investor type and investment flow either from Indian-dedicated, foreign, and co-investment show a favourable impact on future profitability. One of the study's essential findings is that a firm in the growth stage needs more investment in the form of PIPE issuance, and it shows a significant impact on profitability and liquidity.
Journal: Applied Economics
Pages: 1935-1951
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854666
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854666
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1935-1951




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas W. Zuehlke
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Zuehlke
Title: Estimation of a type 2 Tobit model with generalized Box-Cox transformation
Abstract: 
 This article considers estimation of a Type 2 Tobit model with Bickel-Doksum transformation of the dependent variable of the regression equation. The basic idea is that while the transformed dependent variable is assumed to be normally distributed prior to any censoring, the inverse Bickel-Doksum transformation allows the underlying dependent variable to follow a wide variety of distributions having differing degrees of skewness and kurtosis. This adds flexibility to the shape of the distribution used to model quantitative variation in the dependent variable for the observed subsample. The log-likelihood function of this Generalized Type 2 Tobit model is globally concave conditional on the parameter of the Bickel-Doksum transformation and the correlation coefficient of the errors. A bivariate grid search over the space of these parameters may be used to find the neighbourhood of the global maximum to the log-likelihood function, provided one exists. The grid search process is important because: 1) the log-likelihood function of the Type 2 Tobit model, even with fixed functional form, often exhibits distinct local and global maxima and 2) use of consistent estimates as starting values is not sufficient to insure convergence to the global Maximum Likelihood Estimator.
Journal: Applied Economics
Pages: 1952-1975
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854667
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854667
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1952-1975




Template-Type: ReDIF-Article 1.0
Author-Name: Seungho Baek
Author-X-Name-First: Seungho
Author-X-Name-Last: Baek
Author-Name: Kwan Yong Lee
Author-X-Name-First: Kwan Yong
Author-X-Name-Last: Lee
Title: The risk transmission of COVID-19 in the US stock market
Abstract: 
 This paper studies volatility transmission effects between the US stock market and the COVID-19. Using BEKK-multivariate GARCH model, we find the US stock market volatility depends both its own past shocks and past COVID-19 shocks. Further, we find the US stock market volatility is positively affected by the death rate (bad news) while the recovered rate (good news) has a negative impact on the US stock market volatility. In addition, we find there is an asymmetric volatility impact of COVID-19 on the US stock market: the bad news affects the current US stock market much more than the good news. Our fixed effect panel regression results support the volatility spillover effects.
Journal: Applied Economics
Pages: 1976-1990
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854668
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854668
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1976-1990




Template-Type: ReDIF-Article 1.0
Author-Name: Tak Kuen Siu
Author-X-Name-First: Tak Kuen
Author-X-Name-Last: Siu
Title: The risks of cryptocurrencies with long memory in volatility, non-normality and behavioural insights
Abstract: 
 This paper aims to study the impacts of long memory in conditional volatility and conditional non-normality on market risks in Bitcoin and some other cryptocurrencies using an Autoregressive Fractionally Integrated GARCH model with non-normal innovations. Two tail-based risk metrics, namely Value at Risk (VaR) and Expected Shortfall (ES), are adopted to study the tail behaviour of market risks in Bitcoin and some other cryptocurrencies. Empirical investigations for the tail behaviour based on real exchange rate data of cryptocurrencies are conducted. An extreme-value-theory-based approach is used to study potential improvements in the estimation for the risk metrics under GARCH-type models. The possibility of explosive regimes in cryptocurrencies’ volatilities is examined using Markov-switching GARCH models.
Journal: Applied Economics
Pages: 1991-2014
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854669
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854669
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1991-2014




Template-Type: ReDIF-Article 1.0
Author-Name: Liangcheng Wang
Author-X-Name-First: Liangcheng
Author-X-Name-Last: Wang
Author-Name: Yifan Liao
Author-X-Name-First: Yifan
Author-X-Name-Last: Liao
Author-Name: Yuye Ding
Author-X-Name-First: Yuye
Author-X-Name-Last: Ding
Author-Name: Tao Peng
Author-X-Name-First: Tao
Author-X-Name-Last: Peng
Title: The effect of customer concentration on supplier sustainable growth: evidence from China
Abstract: 
 Due to the worldwide pandemic and ‘Stay at Home’ order, many firms have experienced challenges for supply chain management. As the key parts of supply chain management, customer concentration may have a detrimental or beneficial effect on supplier sustainable growth. Using a large sample of listed firms in China, we explore the effect of customer concentration on supplier sustainable growth. This study documents that customer concentration is negatively related to supplier sustainable growth and the adverse effect is salient when a supplier is not under government protection. Further analyses demonstrate that the results are robust to alternative measures and controlling for endogeneity problems. Finally, the path analysis shows that the adverse effect is partially driven by lowering innovation and increasing administration costs in supplier firms, suggesting that innovation and administration costs play a mediating role in the relationship between customer concentration and supplier sustainable growth.
Journal: Applied Economics
Pages: 2015-2025
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854670
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854670
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:2015-2025




Template-Type: ReDIF-Article 1.0
Author-Name: Akanksha Jalan
Author-X-Name-First: Akanksha
Author-X-Name-Last: Jalan
Author-Name: Roman Matkovskyy
Author-X-Name-First: Roman
Author-X-Name-Last: Matkovskyy
Author-Name: Saqib Aziz
Author-X-Name-First: Saqib
Author-X-Name-Last: Aziz
Title: The Bitcoin options market: A first look at pricing and risk
Abstract: 
 This paper offers the first-ever look at Bitcoin options by investigating the wedge between optimum Bitcoin option prices based on classical option valuation models (Black-Scholes-Merton and the Heston-Nandi GARCH (1,1)) and actual premiums at which these options are trading. For this purpose, we use near-the-money call and put options traded on Deribit platform as on 27.01.2020, with the maturities ranging from January 31 to 25 September 2020. In addition, we analyse the risk inherent in Bitcoin options by calculating their Greeks and comparing them to those of traditional commodity options. Pricing results suggest slight overpricing and underpricing for Bitcoin call options with the strike $8,000 maturing on 30.01.2020 and 28.02.2020, respectively. We also find that the Bitcoin options provide much stable deltas over time compared to the other commodity options. This result implies higher insulation from undue price rises with the passage of time for investors in Bitcoin options. Our results are useful to regulators, investors and market managers in better understanding the nuances of the Bitcoin options market in addition to making more informed investment choices.
Journal: Applied Economics
Pages: 2026-2041
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854671
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854671
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:2026-2041




Template-Type: ReDIF-Article 1.0
Author-Name: Elisabeth Paulet
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Paulet
Author-Name: Hareesh Mavoori
Author-X-Name-First: Hareesh
Author-X-Name-Last: Mavoori
Title: Cross-regional analysis of banking efficiency drivers
Abstract: 
 The banking industry plays a crucial role in any economy by providing diverse services aimed at enhancing economic growth. In recent decades, this sector has been transformed due to financial liberalization and new regulatory rules. Therefore, measuring the efficiency of banking institutions is critically important to identify the evolution of efficiency drivers for banks. Based on a sample of 90 individual banks from four different world regions (Europe, US, China, and India), this paper conducts data envelopment, stochastic frontier and anova analyses to measure cost efficiency over a 15-year period (2002–2016). While the overall liberalization of financial markets seems to induce a convergence among efficiency strategies privileging cost minimization to improve efficiency, the existence of state intervention in China and India nuances our results. State owned banks base their efficiency more on maximization of their potential revenue than on controlling costs. On the contrary, their private peers are more similar to Western peers.
Journal: Applied Economics
Pages: 2042-2065
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855312
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855312
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2042-2065




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Author-Name: Sharmistha Self
Author-X-Name-First: Sharmistha
Author-X-Name-Last: Self
Title: Determinants of governance institutional quality in sub-saharan africa
Abstract: 
 The paper hypothesizes that the quality of institutions tends to evolve slowly and in a piecemeal nature over time. In this process policy is seen to be a mechanism through which this evolutionary process takes place. Policy influences intermediary variables, which in turn create opportunities for institutional innovation. There are two hypotheses derived from this analysis and tested empirically in the paper. It is hypothesized that improvements in institutional quality lead to increases in economic development (using two different measures). It is also hypothesized that changes in intermediary variables resulting from policy changes lead to improvements in institutional quality. These two hypotheses are tested using a panel data set made up of twenty-five countries in Africa. The results indicate that improvements in the quality of governance institutions do lead to improvements in economic development and that policies aimed at influencing intermediary variables lead to improvements in governance institutional quality.
Journal: Applied Economics
Pages: 2066-2079
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855314
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855314
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2066-2079




Template-Type: ReDIF-Article 1.0
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Author-Name: Biliang Luo
Author-X-Name-First: Biliang
Author-X-Name-Last: Luo
Title: Does land renting-out increase farmers’ subjective well-being? Evidence from rural China
Abstract: 
 Although the literature finds that renting out farmland can increase farmer’s income, whether lessors’ subjective well-being (SWB) increases or not has been under-analysed. We use data from the 2015 China Household Finance Survey to investigate the relationship between land rental transaction and farmers’ SWB. The results indicate that renting-out farmland does not increase farmers’ SWB if ignoring the types of transaction partners. Further analysis shows that lessors transacting with acquaintances have higher SWB than those transacting with non-acquaintances, and there is no difference in SWB between lessors transacting with non-acquaintances and farmers without land renting-out. This is because although lessors transacting with non-acquaintances obtain higher land rents, they lose the farmland that is the channel of investing in social capitals, which leads to less helps from kin, friends or neighbours when they encounter difficulties. Our analysis implies that lessors’ subjective welfare does not increase even if rural economy and rural residents are commonly regarded to be beneficial from land transfers.
Journal: Applied Economics
Pages: 2080-2092
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855315
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855315
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2080-2092




Template-Type: ReDIF-Article 1.0
Author-Name: Duan Liu
Author-X-Name-First: Duan
Author-X-Name-Last: Liu
Author-Name: Zixin Li
Author-X-Name-First: Zixin
Author-X-Name-Last: Li
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Title: The dynamic evolution of Chinese firms’ cash holdings and R&D: external financing facilitation channels
Abstract: 
 We study the dynamic evolution of Chinese firms’ cash holdings and their relationship with R&D investment using a sample of companies listed in the Chinese A-share market. After introducing the exogenous events of the 2008 financial crisis and China’s ‘four trillion yuan’ monetary stimulus plan (2008–2010), we analyse the dynamic evolution of the relationship between firms’ cash holdings and R&D investment in the development of external financing facilitation channel effects from the perspective of two typical financing facilitation channels, namely bank relationship and equity state-ownership. The main findings are as follows: (1) Firms with higher R&D investments tend to hold more cash reserves. This positive correlation is affected by the economic and monetary conditions, which are changing constantly. The sensitivity of cash holdings to R&D investment plays a crucial role in explaining the dynamic evolution of Chinese firms’ cash holdings. (2) During the 2008 financial crisis, bank relationship and equity state-ownership significantly mitigated the positive relationship between firms’ cash holdings and R&D investments, which means that external financing facilitation channels had greater and more significant effects. Moreover, those effects decreased after the completion of the ‘four trillion yuan’ monetary stimulus plan.
Journal: Applied Economics
Pages: 2093-2107
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855316
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855316
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2093-2107




Template-Type: ReDIF-Article 1.0
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Tenkir Seifu Legesse
Author-X-Name-First: Tenkir Seifu
Author-X-Name-Last: Legesse
Author-Name: Jiqiang Tang
Author-X-Name-First: Jiqiang
Author-X-Name-Last: Tang
Author-Name: Zhen Wu
Author-X-Name-First: Zhen
Author-X-Name-Last: Wu
Title: Financial leverage and firm efficiency: the mediating role of cash holding
Abstract: 
 Agency cost theory suggests that a firm’s financial leverage is important to improve organizational efficiency. Using data of industrial companies of three biggest economies, this study analyzes how debt-financing decision affects firm efficiency and the mediating role of cash holding. We find inverted U-shape relationship between the level of financial leverage and firm efficiency. This implies that firms with optimum capital structure achieve high efficiency. The cash-holding level of the companies negatively relates to the efficiency. We also document that the firms’ that apply more financial leverage are less likely to hold excess cash balances and that the cash holding partially mediates the relationship between the financial leverage and the firms’ efficiency. This suggests that the use of debt financing has the potential to enhance firm efficiency by effectively tapping the free cash flow that would have been misused by the management. The results have important implications for corporate finance since it highlights how financial decisions determine corporate productivity.
Journal: Applied Economics
Pages: 2108-2124
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855317
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855317
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2108-2124




Template-Type: ReDIF-Article 1.0
Author-Name: Jianhua Tan
Author-X-Name-First: Jianhua
Author-X-Name-Last: Tan
Author-Name: Zhidong Tan
Author-X-Name-First: Zhidong
Author-X-Name-Last: Tan
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Title: The impact of a tournament approach on environmental performance: the case of air quality disclosure in China
Abstract: 
 We examine the effect of air quality tournament over the 2012–2016 period on city – and firm-level environmental performance in China. We document that government officials and firm managers of tournament cities change their behavior and make more environmental investments (EIs) than those of non-tournament cities. Additional analysis suggests that the increase in EIs is primarily driven by cities that have previously been ranked last in the tournament. Hence, government official and manager behavior become more pro-environment after the implementation of the air quality tournament. Furthermore, when there is a large grassroots participation, local media reporting, or when the official is motivated to promotion, the impact of tournament participation on EIs is magnified, implying pro-environment behavior changes become more salient when there are outside pressure or strong official incentives. Most importantly, we find the tournament cities experience better air quality than non-tournament cities. Policy implications are discussed.
Journal: Applied Economics
Pages: 2125-2140
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855318
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855318
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2125-2140




Template-Type: ReDIF-Article 1.0
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Yasir Riaz
Author-X-Name-First: Yasir
Author-X-Name-Last: Riaz
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Title: Spillover and risk transmission in the components of the term structure of eurozone yield curve
Abstract: 
 The components of term structure of interest rate are an important element of the asset pricing models. This article studies the connectedness of the component of the sovereign yield curve across eleven earliest members of the Eurozone comprising six core countries (Germany, Netherlands, Finland, Austria, Belgium, France) and five peripheral countries (Greece, Ireland, Italy, Portugal and Spain) thus enabling us to analyse the short-, medium- and long-term yield curve dynamics of these eurozone economies. We document three distinct phases of connectedness described by the early eurozone period, global financial crisis and the European sovereign debt crises, and the period afterwards. We find a higher level of connectedness between the countries before the global financial crisis, which decreased to its lowest levels during the European debt crisis and is now rising back to higher levels following the European debt crisis. We find that, in general, the core countries are net transmitter of spillover, whereas, the peripheral countries are net receivers of spillover for the three components of the yield curve.
Journal: Applied Economics
Pages: 2141-2157
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856322
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856322
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2141-2157




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Dai
Author-X-Name-First: Wei
Author-X-Name-Last: Dai
Author-Name: Bo Zhang
Author-X-Name-First: Bo
Author-X-Name-Last: Zhang
Title: Endogenous business cycles with financial frictions
Abstract: 
 This paper uncovers a series of belief shocks that drive the U.S. economy from both financial markets data and a financial accelerator model with self-fulfiling prophecies. Indeterminacy in the economy does not require externalities or increasing returns in production but it arises from an endogenous and countercyclical markup channel. The computed belief shocks are well identified and resemble the observable proxy in the real world. The model-driven solely by belief shocks performs well on replicating major U.S. business cycle facts. The belief-driven model contains a strong internal propagation mechanism and has more forecasting ability than a standard real business cycle model disturbed by technology shocks.
Journal: Applied Economics
Pages: 2159-2169
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856323
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856323
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2159-2169




Template-Type: ReDIF-Article 1.0
Author-Name: Lan Thanh Nguyen
Author-X-Name-First: Lan Thanh
Author-X-Name-Last: Nguyen
Author-Name: Hung T. Nguyen
Author-X-Name-First: Hung T.
Author-X-Name-Last: Nguyen
Author-Name: Mia Hang Pham
Author-X-Name-First: Mia Hang
Author-X-Name-Last: Pham
Title: Bribe or die: gender differences in entrepreneurship in emerging markets
Abstract: 
 This paper examines the relation between gender differences in entrepreneurship and firm-level bribery, one of the most impactful business obstacles to private sector growth. Using data from a comprehensive survey covering 16,560 enterprises in 32 emerging economies, we find that female-led firms account for 19.2% of all enterprises, which is approximately 4 times lower than the share of male-led firms, and that female entrepreneurs experience a higher level of bribery than their peers. The impact of gender on bribery is more pronounced among firms located in countries that are more corruption-prone and becomes weaker among countries with a higher female graduation ratio at the tertiary level. In addition, female-run firms have a lower likelihood of obtaining a construction permit, securing a government contract, or holding an operating licence. Overall, the results suggest that a bribe-to-survive motive is a possible explanation for the higher level of bribery among female-led firms in emerging markets.
Journal: Applied Economics
Pages: 2170-2191
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856325
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856325
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2170-2191




Template-Type: ReDIF-Article 1.0
Author-Name: Gaoxun Zhang
Author-X-Name-First: Gaoxun
Author-X-Name-Last: Zhang
Author-Name: Gaoxiu Qiao
Author-X-Name-First: Gaoxiu
Author-X-Name-Last: Qiao
Title: Out-of-sample realized volatility forecasting: does the support vector regression compete combination methods
Abstract: 
 This article investigates whether the nonlinear support vector regression method under the Heterogeneous Auto-Regressive model (SVR-HAR) can compete for combination methods in terms of out-of-sample realized volatility forecasting. Empirical analyses are conducted based on the CSI 300 index high-frequency data, two new combination methods are employed and compared with the forecasting ability of the SVR method. The empirical results show that SVR-HAR models outperform individual models and all the combination methods, although the new combination methods are superior to other combination strategies. Specifically, HAR models with realized semi-variances as regressors obtains the lowest forecasting errors, confirming the strong forecasting ability of nonlinear SVR method and the realized semi-variances. The portfolio performance further confirms the highest economic value for models employing realized semi-variances and nonlinear SVR method in terms of volatility forecasting.
Journal: Applied Economics
Pages: 2192-2205
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856326
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856326
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2192-2205




Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Beaumais
Author-X-Name-First: Olivier
Author-X-Name-Last: Beaumais
Author-Name: Sauveur Giannoni
Author-X-Name-First: Sauveur
Author-X-Name-Last: Giannoni
Author-Name: Caroline Tafani
Author-X-Name-First: Caroline
Author-X-Name-Last: Tafani
Title: Local buyers’ exclusion through price on the farmland market: a potential outcome approach
Abstract: 
 The influx of non-local buyers into the land market is commonly held responsible for the exclusion of local buyers through price. We study the seaside farmland market in Corsica. A massive price gap between non-local and local buyers is observed. To explore this gap, we rely on a treatment effect approach. We first estimate hedonic price models, while controlling for omitted variable bias using an innovative method. We go further and estimate a general potential outcome model which allows capturing observable and unobservable preference heterogeneity between buyers. We find that the price gap indeed reflects preference heterogeneity, suggesting market segmentation at work.
Journal: Applied Economics
Pages: 2206-2217
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856767
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856767
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2206-2217




Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Drobetz
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Drobetz
Author-Name: Konstantinos Gavriilidis
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Gavriilidis
Author-Name: Styliani-Iris Krokida
Author-X-Name-First: Styliani-Iris
Author-X-Name-Last: Krokida
Author-Name: Dimitris Tsouknidis
Author-X-Name-First: Dimitris
Author-X-Name-Last: Tsouknidis
Title: The effects of geopolitical risk and economic policy uncertainty on dry bulk shipping freight rates
Abstract: 
 We examine the effects of geopolitical risk (GPR) and economic policy uncertainty (EPU) on shipping freight rates using a Bayesian VAR model. A positive shock to global GPR has an immediate positive, but gradually diminishing, effect on dry bulk shipping freight rates. This effect is driven by global rather than country-specific GPR shocks. Positive shocks to EPU indices for the U.S., Brazil, and China trigger a negative response of dry bulk shipping freight rates that builds gradually over several months. Historical cumulative effects of both GPR and EPU shocks on freight rates can be large and of different signs during different subperiods. Our results are important for both shipowners and charterers when fixing chartering strategies and prioritizing investments in newbuilding or second-hand vessels.
Journal: Applied Economics
Pages: 2218-2229
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1857329
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1857329
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2218-2229




Template-Type: ReDIF-Article 1.0
Author-Name: Furkan Emirmahmutoglu
Author-X-Name-First: Furkan
Author-X-Name-Last: Emirmahmutoglu
Author-Name: Zulal Denaux
Author-X-Name-First: Zulal
Author-X-Name-Last: Denaux
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Title: Regime dependent causality relationship between energy consumption and GDP growth: evidence from OECD countries
Abstract: 
 This study empirically investigates the energy consumption-GDP growth nexus for the period from 1971 to 2016 for 26 OECD countries. The prevailing studies in the literature use limited econometric methodologies, which may wrongly model the underlying relationship and lead to misleading policy conclusions. Our study utilizes the newest econometric methods to reveal the nonlinear relationships in the long-run. Furthermore, to capture the asymmetric behaviour of regime changes, four residual-based nonlinear cointegration tests are implemented. Finally, a two-regime TAR type of panel threshold VECM model (PTVAR) is estimated for testing the presence of nonlinear short- and long-run causality. Our findings indicate a state-dependent causality between energy consumption and GDP growth.
Journal: Applied Economics
Pages: 2230-2241
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1857330
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1857330
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2230-2241




Template-Type: ReDIF-Article 1.0
Author-Name: José M. Pastor
Author-X-Name-First: José M.
Author-X-Name-Last: Pastor
Author-Name: Carlos Peraita
Author-X-Name-First: Carlos
Author-X-Name-Last: Peraita
Author-Name: Ángel Soler
Author-X-Name-First: Ángel
Author-X-Name-Last: Soler
Title: Gender differences in the intergenerational transmission of education in Spain: the role of parents’ employment status and education
Abstract: 
 This article examines the influence of parents’ education and employment status on the attained educational level of their children with special reference to gender differences. Our study analysed what determined the probability of Spanish young people completing university education. The study used a sample of 132,421 observations of people under the age of 28 not in any type of training or education selected using anonymized microdata from the most recent national population and housing census. An ordered probit model was used to capture the effect of various socioeconomic, environmental and cultural variables on the advancement and attainment of educational level according to gender. The results show that the most important variable in academic progress is the parents’ educational level and that the mother’s education level has a greater influence. Additionally, parental employment instability was found to be what most inhibits a child’s academic progress.
Journal: Applied Economics
Pages: 2242-2255
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859449
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859449
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2242-2255




Template-Type: ReDIF-Article 1.0
Author-Name: Raymond Duch
Author-X-Name-First: Raymond
Author-X-Name-Last: Duch
Author-Name: Paulina Granados
Author-X-Name-First: Paulina
Author-X-Name-Last: Granados
Author-Name: Denise Laroze
Author-X-Name-First: Denise
Author-X-Name-Last: Laroze
Author-Name: Mauricio López
Author-X-Name-First: Mauricio
Author-X-Name-Last: López
Author-Name: Marian Ormeño
Author-X-Name-First: Marian
Author-X-Name-Last: Ormeño
Author-Name: Ximena Quintanilla
Author-X-Name-First: Ximena
Author-X-Name-Last: Quintanilla
Title: Choice architecture improves pension selection
Abstract: 
 Consumers in Chile of private and semi-private pension systems are not selecting the pension providers that give them the largest Net Present Value. Regulators present retirees with a comparison report of pension plan offerings ranked by the amount offered and the risk classification of the provider. A field experiment implemented in Chile explores alternative presentations of provider performance. We treat respondents by modifying the status quo information ‘package’ (that exactly replicate what is currently provided by the regulator). Two design choices clearly enhanced consumer welfare in this experiment: Reducing the amount of information improved choice – specifically eliminating the risk profiles of providers leads to better decisions by our respondents. Second, adopting a loss frame also resulted in respondents selecting providers that generated higher returns. These gains from modifying information presentation were considerably higher for those with lower levels of financial literacy. This study is conducted in association with the Superintendencia de Pensiones (SP) and the Comisión para el Mercado Financiero (CMF), two of the public offices that oversee the pensions market in Chile.
Journal: Applied Economics
Pages: 2256-2274
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1817845
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1817845
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2256-2274




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Joseph Minviel
Author-X-Name-First: Jean Joseph
Author-X-Name-Last: Minviel
Author-Name: Patrick Veysset
Author-X-Name-First: Patrick
Author-X-Name-Last: Veysset
Title: Are there economies of inputs in mixed crop-livestock farming systems? A cross-frontier approach applied to French dairy-grain farms
Abstract: 
 In this study, we test the hypothesis that mixed crop-livestock farms realize economies of inputs. To do so, we use the standard cross-frontier model to evaluate overall input efficiencies and develop a slacks-based (SB) cross-frontier model to evaluate input-specific efficiencies of mixed farms related to the best practice production frontier of specialized farms. These models are applied to an unbalanced panel with 825 observations on 247 French farms from 1991 to 2011. Regarding the standard cross-frontier framework, we find that 72% of the mixed farms exhibit diseconomies of inputs. This suggests that the mixed production technology is largely dominated by the specialized one in terms of input savings. Under the SB cross-frontier model, we find that the mixed farms exhibit, on average, diseconomies of inputs for each of their production factors. We also find that almost a quarter of the mixed farms realizes economies of inputs on the use of labour, fertilizers, and pesticides. Finally, regression results indicate that public subsidies and farm size are negatively associated with the probability of observing input economies. This suggests that, for our sample, the concept of mixed crop-livestock farming faces structural and socio-economic realities, mainly regarding farm size and public subsidies.
Journal: Applied Economics
Pages: 2275-2291
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856324
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856324
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2275-2291




Template-Type: ReDIF-Article 1.0
Author-Name: Tinna Laufey Ásgeirsdóttir
Author-X-Name-First: Tinna Laufey
Author-X-Name-Last: Ásgeirsdóttir
Author-Name: Arnar Buason
Author-X-Name-First: Arnar
Author-X-Name-Last: Buason
Author-Name: Brynja Jonbjarnardottir
Author-X-Name-First: Brynja
Author-X-Name-Last: Jonbjarnardottir
Author-Name: Thorhildur Ólafsdóttir
Author-X-Name-First: Thorhildur
Author-X-Name-Last: Ólafsdóttir
Title: The value of normal body weight: evidence from Iceland
Abstract: 
 Calculations of societal costs of underweight, overweight and obesity have generally failed to include the value of the utility reductions, associated with deviations from normal weight. To remedy this, the monetary compensation needed to offset the welfare loss associated with being underweight, overweight, or obese, according to World Health Organizations standards, is estimated. For this purpose, the compensating income variation (CIV) method is applied to individual-level data from an Icelandic health and lifestyle survey carried out in 2007, 2009, 2012, and 2017. The results show that both males and females would on average be willing to pay a positive amount to move from obesity to normal weight, albeit a varying amount by income group. The CIV for moving from obesity to normal weight among males for the low-, medium-, and high-income groups are $18,022, $25,768, and $632,002 per year. In comparison the same results for females are $9,191, $16,239, and $95,494. However, only females show a positive willingness to pay for not being overweight. The CIV for overweight females for the three income groups is $3,608, $6,375, and $37,488 per year.
Journal: Applied Economics
Pages: 2292-2304
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859450
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859450
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2292-2304




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Lawson
Author-X-Name-First: Joshua
Author-X-Name-Last: Lawson
Author-Name: Rafayet Alam
Author-X-Name-First: Rafayet
Author-X-Name-Last: Alam
Author-Name: Xiaoli Etienne
Author-X-Name-First: Xiaoli
Author-X-Name-Last: Etienne
Title: Speculation and food-grain prices
Abstract: 
 The impact of speculative activities in financial markets on food-grain prices is a topical but debated issue. We consider four major food-grain commodities and several speculation measures–which represent different underlying definitions of speculation–in structural vector autoregression models to examine this issue empirically. Results show that the impact of speculation depends on the commodity in question (rice and wheat are generally less sensitive than corn and soybean) and the measure of speculation used. Further analysis shows that traders’ behaviour in the futures market is different for wheat and rice, around 80% of which are directly used for human consumption, compared to corn and soybean, only around 15% of which are directly used as human food. We also show that the heterogeneous effect of different speculative measures is mostly due to their construction. Results are robust to various modifications of the models. From a policy perspective, we think a blanket regulation for all the commodities may not be optimal.
Journal: Applied Economics
Pages: 2305-2321
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859451
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859451
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2305-2321




Template-Type: ReDIF-Article 1.0
Author-Name: Insook Lee
Author-X-Name-First: Insook
Author-X-Name-Last: Lee
Title: Does outlawing mandatory retirement reduce public-pension benefit claim?
Abstract: 
 Exploiting the 2011 abolishment of the mandatory-retirement provision that had allowed employers to force retirement of their 65-or-older employees in the UK, this paper estimates the effect of outlawing mandatory retirement on public-pension benefit claim behaviour of the elderly through changing their employment and retirement rates. Abolishing mandatory retirement raises public-pension claim rate of non-household-head benefit-eligible individuals by making them retire more, while it lowers public-pension claim rate of household-head benefit-eligible individuals by lowering their retirement rate. On the other hand, the abolishment raises full-time employment rate of the elderly, regardless of household-head status or gender.
Journal: Applied Economics
Pages: 2322-2336
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859452
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859452
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2322-2336




Template-Type: ReDIF-Article 1.0
Author-Name: Amélie Barbier-Gauchard
Author-X-Name-First: Amélie
Author-X-Name-Last: Barbier-Gauchard
Author-Name: Kea Baret
Author-X-Name-First: Kea
Author-X-Name-Last: Baret
Author-Name: Alexandru Minea
Author-X-Name-First: Alexandru
Author-X-Name-Last: Minea
Title: National fiscal rules and fiscal discipline in the European Union
Abstract: 
 Motivated by the fiscal imbalances in the EU countries in the recent period, this paper analyzes the effect of national fiscal rules on fiscal discipline. Using a careful definition of national fiscal rules combined with a novel measure of fiscal discipline (the Global Financial Performance Index – GFPI), propensity score matching estimations that account for potential endogeneity reveal that fiscal rules significantly improve the GFPI. However, this favourable effect dramatically depends upon the type of fiscal rule and different structural factors. These two features, together with alternative measures of fiscal discipline, are found to be key ingredients that should be taken into account when assessing the effects of fiscal rules on fiscal discipline.
Journal: Applied Economics
Pages: 2337-2359
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859453
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859453
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2337-2359




Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Title: Does greater bank competition increase third-party guarantee loan default rates? evidence from U.S. interstate branching deregulation
Abstract: 
 Exploiting the interstate branching restrictiveness law that allowed states to erect barriers to branch expansion, we test whether increased interbank competition increases risk-bearing, proxied by higher loan default, for third-party loan guarantors. We find that Small Business Administration (SBA) loans from states with higher restrictiveness (lower competition) are less likely to default, by at least four percent. The findings are robust to a variety of falsification tests. Confirming increased risk transfer to SBA, banks in less restrictive states facing increased competition: increased both SBA loan amount and duration of the loan and the learning-by-loaning (cumulative loan volume before the current loan) did not affect the likelihood of default of the current loan. Counterfactually, loans of higher approval amount and longer duration were less likely to default in more restrictive states.
Journal: Applied Economics
Pages: 2360-2383
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859454
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859454
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2360-2383




Template-Type: ReDIF-Article 1.0
Author-Name: Chew Lian Chua
Author-X-Name-First: Chew Lian
Author-X-Name-Last: Chua
Author-Name: Nelson Perera
Author-X-Name-First: Nelson
Author-X-Name-Last: Perera
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Title: Fiscal regimes and fiscal sustainability in Sri Lanka
Abstract: 
 This paper employs the regime-switching model-based fiscal sustainability test which relaxes the linear fiscal reaction function approach. There is evidence of a regime-switching fiscal rule in Sri Lanka for the period 1961–2017. Non-sustainable fiscal regime is identified only in two periods – 1978-1983 and 1986-1990 – while the other periods are defined by sustainable regimes. By considering the regime-specific feedback coefficients of the fiscal policy rule and the average durations of fiscal regimes, we find that Sri Lanka’s fiscal policy satisfies the No-Ponzi game condition. Nevertheless, the country’s long-term fiscal sustainability is in question given that the stricter debt-stabilizing condition is violated. Our results pose concerns for the credibility of adopting an inflation targeting framework in the absence of long-term fiscal sustainability.
Journal: Applied Economics
Pages: 2384-2397
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1859456
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859456
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2384-2397




Template-Type: ReDIF-Article 1.0
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Author-Name: Zhao Zhao
Author-X-Name-First: Zhao
Author-X-Name-Last: Zhao
Title: Large cryptocurrency-portfolios: efficient sorting with leverage constraints
Abstract: 
 Using daily data of the 100 largest cryptocurrencies, we construct the efficient sorting portfolios and the quantile-based sorting portfolios based on ten factors. We find two price factors that can well predict cryptocurrency returns. The efficient sorting portfolios outperform the traditional quantile-based portfolios and the naive $$1/N$$1/N portfolios. The outperformance is largely due to the use of DCC-NL estimator, which captures the dynamic of covariance matrix and meanwhile addresses the curse of dimensionality. In addition, leverage constraints are important for cryptocurrency portfolios to control their risks.
Journal: Applied Economics
Pages: 2398-2411
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1859457
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859457
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2398-2411




Template-Type: ReDIF-Article 1.0
Author-Name: Yun Pu
Author-X-Name-First: Yun
Author-X-Name-Last: Pu
Title: A recursive algorithm for student selection of schools in a constrained serial dictatorship mechanism
Abstract: 
 The constrained serial dictatorship mechanism is a popular method used in school admissions. However, due to the number of combinations possible, simulating the behaviour of students in their selection of schools and computing the best strategy for them to select a limited number of schools is currently a highly complex and time-consuming endeavour. The purpose of this study is to propose a recursive algorithm to significantly reduce this computational time and to provide an empirical application by employing this algorithm. To do this, I studied how the behaviours and utilities of students will change if provided with more choices for college admissions in Guangxi in China. The results indicate that neither the behaviours nor the utilities change significantly with the provision of more choices, which implies that increasing the available choices of schools for students in Guangxi would be a waste of resources.
Journal: Applied Economics
Pages: 2412-2415
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861204
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861204
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2412-2415




Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Kjær Eskildsen
Author-X-Name-First: Jacob Kjær
Author-X-Name-Last: Eskildsen
Author-Name: Anders Frederiksen
Author-X-Name-First: Anders
Author-X-Name-Last: Frederiksen
Author-Name: Ann-Kristina Løkke Møller
Author-X-Name-First: Ann-Kristina
Author-X-Name-Last: Løkke Møller
Title: Employee absence in public and private organizations
Abstract: 
 We study employee absence in Danish public and private organizations. Using data from four private and four public organizations we establish sector differences and that absence is predominantly an individualized phenomenon. Because the within-group variation in absence clearly dominates the between-group variation, we conclude that organizations need to invoke individualized policies to reduce employee absence, and we establish that incentives related to promotions and dismissals can be useful tools, as absence behaviour interacts with such incentives.
Journal: Applied Economics
Pages: 2416-2432
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861206
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861206
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2416-2432




Template-Type: ReDIF-Article 1.0
Author-Name: Phu Nguyen-Van
Author-X-Name-First: Phu
Author-X-Name-Last: Nguyen-Van
Author-Name: Isabelle Terraz
Author-X-Name-First: Isabelle
Author-X-Name-Last: Terraz
Title: When union’s activity matters: the impact of union centralization on economic growth in OECD countries
Abstract: 
 It is nowadays accepted that labour market institutions matter in economic development. However, empirical studies on unions’ effect are not univocal. We provide new insight into the impact of unions on the long-run performance of industrialized economies using an indicator of union centralization. Relying on a recent panel dataset of OECD countries, we estimate a growth equation and show that a high degree of union centralization can be harmful to growth. This effect is not driven by economic channels (such as private investment, human capital and research and development) but appears to be related to a direct effect of unions on the growth process.
Journal: Applied Economics
Pages: 2433-2446
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861207
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861207
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2433-2446




Template-Type: ReDIF-Article 1.0
Author-Name: Alexandre Mayol
Author-X-Name-First: Alexandre
Author-X-Name-Last: Mayol
Author-Name: Stéphane Saussier
Author-X-Name-First: Stéphane
Author-X-Name-Last: Saussier
Title: Contract renewals, prices and deprivatizations: The case of water in France
Abstract: 
 In this paper, we studied the influence of contract renewals on water prices in France. When studying French water contracts in force between 2008 and 2018, we found that contract renewals have little influence on the prices paid by consumers. However, at contract renewal times, the share of the price that goes to the firms decreases. This price decrease is compensated by an increase in the share of the price that is retained by the municipalities. We interpret this result as a willingness by municipalities to retake control of water services. In addition, we show that the higher the municipalities’ shares are, the higher the probability of switching to direct public management at contract renewal times. This suggests that local authorities increasing their responsibilities in providing water services (i.e., increasing their price shares) may switch later to direct public management more easily.
Journal: Applied Economics
Pages: 2447-2456
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861208
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861208
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2447-2456




Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Li
Author-X-Name-First: Xuelian
Author-X-Name-Last: Li
Author-Name: Zehe Song
Author-X-Name-First: Zehe
Author-X-Name-Last: Song
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: Soft information in insurer lending and reinsurance under capital regulation
Abstract: 
 The paper develops a capped call option framework, explicitly integrating the borrowing-firm credit risk. Moreover, modelling the structural breaks in assets and volatility captures soft information about the insurer’s borrowing firm. We show that favourable soft information increases the optimal guaranteed rate and thus enhances policyholder protection. The negative effect of the reinsurance on the optimal guaranteed rate is more significant when obtaining negative soft information than when getting favourable soft information. The positive impact of stringent capital regulation on the optimal guaranteed rate in the negative soft information is less significant than that in the favourable soft information. Stringent capital regulation increases policyholder protection and the market-to-book equity value when the strict capital regulation is high, thereby contributing to insurance stability.
Journal: Applied Economics
Pages: 2457-2466
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861210
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861210
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2457-2466




Template-Type: ReDIF-Article 1.0
Author-Name: Elke Hahn
Author-X-Name-First: Elke
Author-X-Name-Last: Hahn
Title: How are wage developments passed through to prices in the euro area? Evidence from a BVAR model
Abstract: 
 This paper explores the transmission mechanism between wages and prices in the euro area. While labour costs account for notable parts of companies’ costs and should, hence, be of relevance for the developments in inflation, the empirical literature suggests only a loose link between the variables. From a theoretical perspective there are at least two broad categories of channels of how labour costs and prices can be linked, namely the supply-side channel of cost push inflation and the demand-side channel of demand pull inflation. This paper develops a BVAR model for the wage-price pass-through in the euro area and analyses how supply and demand shocks that trigger these two types of inflation are transmitted between wages and prices along the cost side of the economy. The main results can be summarized as follows: First, the wage-price pass-through in the euro area is shock-dependent. Second, the pass-through of wages to prices appears to have undergone some changes over time. Third, the pass-through appears to differ across HICP components. Finally, historical decompositions show that the identified shocks are of relevance for the movements of wages and prices in the euro area.
Journal: Applied Economics
Pages: 2467-2485
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2019.1676390
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676390
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2467-2485




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Ismail Alhussam
Author-X-Name-First: Mohammed Ismail
Author-X-Name-Last: Alhussam
Author-Name: Hongxing Yao
Author-X-Name-First: Hongxing
Author-X-Name-Last: Yao
Author-Name: Omar Abu Risha
Author-X-Name-First: Omar
Author-X-Name-Last: Abu Risha
Title: The impact of scholarship inflows on achieving food security: what can Bayesian networks tell us?
Abstract: 
 This study uses Bayesian networks besides the regression model to analyse the relationship between scholarship inflows and food security in 46 of Belt and Road Initiative countries. Our main contributions are: 1 – Analysing the relationship between scholarship inflows and food security. 2 – Using Bayesian networks to analyse this relationship. 3 – Comparing Bayesian networks results with regression model results. The regression model resulted that scholarship inflows have a significant positive effect on food security with small coefficient value. On the other hand, Bayesian networks showed that food security conditionally depends on scholarship inflows given the percentage of agricultural value add of GDP. In addition, Bayesian networks had higher prediction accuracy than the regression model. Whereas the constraint-based approach of network structure learning showed the highest prediction power, the information theory measures of network quality, including Entropy and Mutual Information, revealed better performance than Bayesian measures. Finally, we concluded that using Bayesian networks beside linear models could enhance our results.
Journal: Applied Economics
Pages: 2486-2499
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1778160
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1778160
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2486-2499




Template-Type: ReDIF-Article 1.0
Author-Name: Min Liu
Author-X-Name-First: Min
Author-X-Name-Last: Liu
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Wei-Chong Choo
Author-X-Name-First: Wei-Chong
Author-X-Name-Last: Choo
Title: The role of high-frequency data in volatility forecasting: evidence from the China stock market
Abstract: 
 This research investigates the role of high-frequency data in volatility forecasting of the China stock market by particularly feeding different frequency return series directly into a large number of GARCH versions. The contributions of this research are as follows. 1) We provide clear evidence to support that the superiority of traditional time series models in volatility forecasting remains by taking advantage of high-frequency data. 2) We incorporate different distribution assumptions in GARCH models to capture the stylized facts of high-frequency data. The result shows that: 1) data frequency in GARCH application substantially influence the accuracy of volatility forecasting, as the higher the frequency is of the return series, the better are the forecasts provided; 2) non-normal distributions such as skewed student-t and generalized error distribution are more capable at reproducing the stylized facts of both intraday and daily return series than normal distribution; and 3) GARCH estimated by 5-min returns not only outperforms other GARCH alternatives, but also considerably beats RV-based models such as HAR and ARFIMA at volatility forecasting.
Journal: Applied Economics
Pages: 2500-2526
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1862747
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1862747
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2500-2526




Template-Type: ReDIF-Article 1.0
Author-Name: Jungho Baek
Author-X-Name-First: Jungho
Author-X-Name-Last: Baek
Title: Crude oil prices and macroeconomic activities: a structural VAR approach to Indonesia
Abstract: 
 The effects of oil price fluctuations on growth, inflation, and exchange rates for Indonesia are investigated in the framework of the structural vector autoregressive (SVAR). To identify linking oil prices to the macroeconomic activities accurately, the entire sample period is separated into two sub-samples such as the era of net oil exporter (1998:M1-2003:M12) and the era of net oil importer (2004:M1-2019:M4). In the era of net oil exporter, we discover that a surge in oil prices promotes growth and contributes to appreciating the Indonesian currency. In the era of net oil importer, by contrast, an upsurge in oil prices reduces growth and causes a depreciation of the exchange rate. However, there is little evidence that an upswing in oil prices in both eras has a significantly detrimental effect on inflation.
Journal: Applied Economics
Pages: 2527-2538
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1862750
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1862750
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2527-2538




Template-Type: ReDIF-Article 1.0
Author-Name: Ahsen Maqsoom
Author-X-Name-First: Ahsen
Author-X-Name-Last: Maqsoom
Author-Name: Imran Arif
Author-X-Name-First: Imran
Author-X-Name-Last: Arif
Author-Name: Khuram Shafi
Author-X-Name-First: Khuram
Author-X-Name-Last: Shafi
Author-Name: Muhammad Umer
Author-X-Name-First: Muhammad
Author-X-Name-Last: Umer
Author-Name: Tahira Nazir
Author-X-Name-First: Tahira
Author-X-Name-Last: Nazir
Author-Name: Samina Nawab
Author-X-Name-First: Samina
Author-X-Name-Last: Nawab
Title: Motives and competitive assets for internationalization: a comparison between emerging and developed economy international construction contracting firms
Abstract: 
 This study aims to evaluate the differences in the internationalization of emerging and developed economies firms. Using an integrated theoretical approach, this paper examines the motives and competitive assets (firm and home country-specific) that enabled the international expansion of Pakistani and British international construction contracting firms (ICCFs) into Middle East markets. The data for the current study were collected through questionnaire-based survey. Further, the statistical analysis of the collected data was accomplished by applying the Man Whitney-U test, using Statistical Package for the Social Sciences (SPSS). Findings show that Pakistani ICCFs have a reactive approach for their internationalization as compared to British ICCFs. In order to get the recognition of global players, Pakistani ICCFs need to enhance their firm-specific competitive assets, specifically international reputation, quality of services, internationally experienced management and financing capital. Further, the results also revealed that the home country support in the form of good image, economic development, government encouragement, and availability of funding from local banks has contributed significantly towards British ICCFs expansion. Pakistani ICCFs have an advantage in terms of supportive industries and multicultural workforce availability. However, local governmental encouragement and friendly business policies are needed to enhance their competitiveness in international markets.
Journal: Applied Economics
Pages: 2539-2553
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863321
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863321
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2539-2553




Template-Type: ReDIF-Article 1.0
Author-Name: T. Randolph Beard
Author-X-Name-First: T. Randolph
Author-X-Name-Last: Beard
Author-Name: George Ford
Author-X-Name-First: George
Author-X-Name-Last: Ford
Author-Name: Lawrence J. Spiwak
Author-X-Name-First: Lawrence J.
Author-X-Name-Last: Spiwak
Title: Spatial competition in automobile retailing
Abstract: 
 Despite a rich literature on the determinants of automobile pricing, there is relatively little formal evidence regarding the effects of spatial intrabrand competition in auto retailing. Using an extremely large sample of tax registrations in Texas (USA) for 19 of the most popular sedans, we examine how the closeness of a dealer selling the same make and model of vehicle affected the final price. We find very strong evidence that the proximity of a same-brand dealer reduces prices significantly, though we find smaller effects for the lowest priced vehicles, a result consistent with the view that such vehicles are sold essentially at cost in order to satisfy Corporate Average Fuel Economy (CAFE) standards and related fleet characteristic regulations.
Journal: Applied Economics
Pages: 2554-2566
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863322
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863322
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2554-2566




Template-Type: ReDIF-Article 1.0
Author-Name: Ping Zhang
Author-X-Name-First: Ping
Author-X-Name-Last: Zhang
Author-Name: Yan Liu
Author-X-Name-First: Yan
Author-X-Name-Last: Liu
Author-Name: Lu Miao
Author-X-Name-First: Lu
Author-X-Name-Last: Miao
Title: Impacts of social networks on floating population wages under different marketization levels: empirical analysis of China’s 2016 national floating population dynamic monitoring data
Abstract: 
 This paper establishes a measurement model to examine the impacts of social network heterogeneity on the wages of the floating population, and the different impacts under different levels of marketization. The main findings are: (1) Social network heterogeneity can increase the wages of the floating population, which is particularly significant for urban-urban migrants with non-agricultural registration; (2) The effect of social network heterogeneity on the wages of the floating population is due to the different levels of marketization of the destination market of inflows. The levels of marketization vary from place to place: in cities with low marketization levels, the homogeneous social networks can increase the wages more than the heterogeneous social networks. With marketization levels increase, social networks can increase the employment wages of migrants through three stages: the stage of the homogeneous social network is stronger than heterogeneous social network; the stage of no significant difference between homogeneous social network and heterogeneous social network; the stage of heterogeneous social network is stronger than homogeneous social network. In general, for the wages of rural-urban migrants with agricultural hukou, homogeneous social networks and marketization levels have a substitutional relationship, while heterogeneous social networks and marketization levels have a complementary relationship.
Journal: Applied Economics
Pages: 2567-2583
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863323
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863323
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2567-2583




Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Khazaei
Author-X-Name-First: Mehdi
Author-X-Name-Last: Khazaei
Title: Relationship of profitability of world’s top companies with entrepreneurship, competitiveness, and business environment indicators
Abstract: 
 Identifying the factors affecting profitability is important from the perspective of market players. One of the most important benchmarks of firm performance is accounting profit and effective factors analysis so that users of accounting information analyse the factors affecting profit, firm performance and various aspects of its performance and according to estimates Done, make your own decision on how to allocate resources.The main purpose of this study is to investigate the impact of some factors of competitiveness, entrepreneurship and business environment indicators on the profitability of the world’s top companies. For this purpose, 176 top companies in the world from 2013 to 2018 that were profitable among the top 200 companies each year were selected as the statistical population. World Bank annual reports, Global Competitiveness Index, Global Entrepreneurship Monitor, and Fortune site were used to collect the data. Also the data analysis was done according to the data panel method using Eviews10 software. The results show that in general, there is a positive relationship between competitiveness, entrepreneurship and business environment indicators with financial performance of top companies in the world. On the other hand, the per capita income of the countries in which the top companies belonged was considered as a control variable and the results show that the per capita income has a positive and significant relationship with the financial performance of the top companies in the world.
Journal: Applied Economics
Pages: 2584-2597
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1859455
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859455
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2584-2597




Template-Type: ReDIF-Article 1.0
Author-Name: Koffi Sodokin
Author-X-Name-First: Koffi
Author-X-Name-Last: Sodokin
Title: Comparative analysis, cash transfers, household investment and inequality reduction in Togo
Abstract: 
 This paper explores the impact of domestic and international cash transfers on poverty and household resilience in Togo from a comparative perspective. The paper uses data from two household surveys (The Unified Questionnaire of Basic Well-being Indicators) conducted by the National Institute of Statistics Economic and Demographic Studies of Togo in 2011 and 2015. The analysis uses the propensity score matching method and the quantile instrumental regression. The first category of results shows that migrants’ external and internal remittances positively affect poverty and inequality and improve households’ investments in Togo. The second category of results allows concluding on the implications for public policy in a time of pandemic shock, such as the Sars-Cov-2 one.JEL: O12; O38; O55
Journal: Applied Economics
Pages: 2598-2614
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863324
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863324
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2598-2614




Template-Type: ReDIF-Article 1.0
Author-Name: Jin Zhou
Author-X-Name-First: Jin
Author-X-Name-Last: Zhou
Author-Name: Ali Raza
Author-X-Name-First: Ali
Author-X-Name-Last: Raza
Author-Name: Hongguang Sui
Author-X-Name-First: Hongguang
Author-X-Name-Last: Sui
Title: Infrastructure investment and economic growth quality: empirical analysis of China’s regional development
Abstract: 
 The study aims to systematically examine the role of infrastructure investment on the quality of economic growth by using the regional panel data of 29 Chinese provinces. A comprehensive index is developed using the principal component analysis (PCA) to observe the economic growth quality. Regression results show that China’s infrastructure investment has not exceeded the threshold, and the quality of economic growth has improved significantly. The results were robust using the regional average investment level and infrastructure stock as instrumental variables for 2SLS and system GMM testing. Further, the mediation analysis confirms that infrastructure investment improves economic growth through the physical and material circulation of resources, market integration, and knowledge capital evolution. Overall the results provide more profound policy enlightenment with regards to infrastructure investment.
Journal: Applied Economics
Pages: 2615-2630
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863325
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863325
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2615-2630




Template-Type: ReDIF-Article 1.0
Author-Name: Tiago Neves Sequeira
Author-X-Name-First: Tiago Neves
Author-X-Name-Last: Sequeira
Author-Name: Pedro Mazeda Gil
Author-X-Name-First: Pedro Mazeda
Author-X-Name-Last: Gil
Author-Name: Óscar Afonso
Author-X-Name-First: Óscar
Author-X-Name-Last: Afonso
Title: Inflation, complexity and endogenous growth
Abstract: 
 In this article, we argue that inflation increases complexity pertaining to knowledge production (or R&D). Then, we expand a recently developed complexity index based on entropy to include the effect of inflation. As a result of this new mechanism in an endogenous growth model, inflation is no longer superneutral. In the model, inflation can decrease economic growth in a non-linear way, a sudden upward shock on inflation can severely hurt economic growth and an inflation cut can be responsible for a take-off. These effects are illustrated quantitatively.
Journal: Applied Economics
Pages: 2631-2646
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1864274
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1864274
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2631-2646




Template-Type: ReDIF-Article 1.0
Author-Name: Ting Yao
Author-X-Name-First: Ting
Author-X-Name-Last: Yao
Author-Name: Liangrong Song
Author-X-Name-First: Liangrong
Author-X-Name-Last: Song
Title: Examining the differences in the impact of Fintech on the economic capital of commercial banks’ market risk: evidence from a panel system GMM analysis
Abstract: 
 This article aims to explore the dynamic relationship between Fintech (financial technology) and EC(the economic capital of commercial banks market risk) changes for a sample of 16 listed commercial banks in China. We estimate a balance panel dynamic system Generalized Method of Moment (GMM) approach for the period of January 2011 to September 2019.The article finds that during the sample period, Fintech has reduced the cost of information on both sides of the transaction, increased the transparency of market information, and reduced the EC. It also finds Fintech can provide a large amount of data for commercial banks to conduct market analysis, which makes the procyclicality of commercial banks less than before. Further tests reveal commercial banks have profit-driven preferences, while banks with strong profitability and high asset scale have higher risk tolerance. The impact of Fintech on the EC of different asset sizes commercial banks market risk is different.
Journal: Applied Economics
Pages: 2647-2660
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1864275
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1864275
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2647-2660




Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Heng Lee
Author-X-Name-First: Yung-Heng
Author-X-Name-Last: Lee
Author-Name: Lori Tzu-Yi Yang
Author-X-Name-First: Lori Tzu-Yi
Author-X-Name-Last: Yang
Title: Corporate social responsibility and financial performance: a case study based in Taiwan
Abstract: 
 This study investigates whether the impact of a firm’s CFP differs depending on the level of CSR performance and the amount of annual operating expenditure. The ‘Excellence in Corporate Social Responsibility TOP 50’ award results serve as the CSR performance indicator, and corporate annual financial performance data from 2013 to 2017 serve as empirical data. This study uses the panel smooth transition regression model. The findings reveal that the relationship between a firm’s operating expenditures and its profitability is non-linear, and with certain threshold values of CSR scores, operating spend has a more significant and negative effect on profitability. Firms that implemented more CSR measures experienced greater negative effects on profitability.
Journal: Applied Economics
Pages: 2661-2670
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866158
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866158
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2661-2670




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Guo
Author-X-Name-First: Wei
Author-X-Name-Last: Guo
Author-Name: Sebastian A. Gehricke
Author-X-Name-First: Sebastian A.
Author-X-Name-Last: Gehricke
Author-Name: Xinfeng Ruan
Author-X-Name-First: Xinfeng
Author-X-Name-Last: Ruan
Author-Name: Jin E. Zhang
Author-X-Name-First: Jin E.
Author-X-Name-Last: Zhang
Title: The implied volatility smirk in SPY options
Abstract: 
 We provide a comprehensive study of the implied volatility (IV) smirk in the SPDR S&P 500 Exchange-Traded Fund (SPY ETF) option market. In general, the IV curves are downward sloping with little curvature, exhibiting an almost straight line. However, the shape of the IV curves becomes more curved during the global financial crisis (GFC) period, indicating that the commonly accepted IV smirk shape is driven by the GFC. In addition, based on in-sample, out-of-sample tests and asset allocation analysis, we show that the first difference of the slope factor can predict the next month’s SPY excess returns.
Journal: Applied Economics
Pages: 2671-2692
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866159
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866159
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2671-2692




Template-Type: ReDIF-Article 1.0
Author-Name: Mario Eboli
Author-X-Name-First: Mario
Author-X-Name-Last: Eboli
Author-Name: Andrea Toto
Author-X-Name-First: Andrea
Author-X-Name-Last: Toto
Author-Name: Andrea Ziruolo
Author-X-Name-First: Andrea
Author-X-Name-Last: Ziruolo
Title: Mafia infiltrations in Italian municipalities: two statistical indicators
Abstract: 
 We study the administrative behaviour of a sample of Italian municipalities dismissed by the Government because of mafia infiltrations, looking at their balance-sheet data. Using linear discriminant analysis and logistic regressions, we put forward two statistical indicators of the probability that a mafia infiltrated a city council. Our results characterize the administrative profile of infiltrated municipalities. We obtain non-obvious results concerning their i) high levels of arrears, both of tax collections and payments; ii) low levels of indebtness; and iii) low levels of capital expenditures, especially for public works.
Journal: Applied Economics
Pages: 2693-2712
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866157
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866157
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2693-2712




Template-Type: ReDIF-Article 1.0
Author-Name: Giulia Tiboldo
Author-X-Name-First: Giulia
Author-X-Name-Last: Tiboldo
Author-Name: Alessandro Bonanno
Author-X-Name-First: Alessandro
Author-X-Name-Last: Bonanno
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Author-Name: Elena Castellari
Author-X-Name-First: Elena
Author-X-Name-Last: Castellari
Title: Competitive and welfare effects of private label presence in differentiated food markets
Abstract: 
 Private labels (PLs), originally introduced by food retailers as low-priced alternatives to national brands, have expanded in recent years in premium market segments. This article examines how the presence of different types of PLs affect prices, competition, and overall welfare. Using estimates from a random coefficients logit demand model and retail scanner data of yogurt sales from 17 regions in Italy, we simulate counterfactual scenarios where different types of PLs – namely 1) horizontally differentiated; 2) vertically differentiated; and 3) both types – are no longer in the market. The empirical results show that PLs are social-welfare enhancing, playing a pro-competitive role that benefits consumers. Also, in both a relative and an absolute sense, the welfare-increasing effect of PLs presence is more significant for horizontally differentiated PLs than for vertically differentiated ones.
Journal: Applied Economics
Pages: 2713-2726
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866160
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866160
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2713-2726




Template-Type: ReDIF-Article 1.0
Author-Name: Yuan Zhong
Author-X-Name-First: Yuan
Author-X-Name-Last: Zhong
Author-Name: Zhenguo Wang
Author-X-Name-First: Zhenguo
Author-X-Name-Last: Wang
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Title: China’s functional upgrading in global value chains and its drivers: a multi-country chaining structural decomposition analysis
Abstract: 
 The functional activities, such as management, marketing, R&D and fabrication, carried out by a country or industry is of great importance for its governance and upgrading on the global value chains (GVCs). This paper provides a long-term macro-economic analysis on China’s functional upgrading in GVCs and its drivers between 1999 and 2011. We combine the world input-output database with the newly compiled labour occupations database to measure China’s functional income growth in internationally fragmented production networks, and then incorporate the concept into the chaining structural decomposition analysis (SDA) to explore its drivers. We find that China has achieved functional upgrading to some degree, reflected in the growth of China’s domestic value added in headquarter activities, such as R&D, at the aggregate and industrial levels. However, fabrication activity still stands out, indicating that China still has a long way to go on upgrading in GVCs. Finally, through the chaining SDA, we find that among the GVC production, technology and consumption effects, the consumption level (consumer demand) is the main factor driving the growth of China’s functional upgrading.
Journal: Applied Economics
Pages: 2727-2742
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866161
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866161
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2727-2742




Template-Type: ReDIF-Article 1.0
Author-Name: Bent Egberg Mikkelsen
Author-X-Name-First: Bent Egberg
Author-X-Name-Last: Mikkelsen
Author-Name: Dana Strachotová
Author-X-Name-First: Dana
Author-X-Name-Last: Strachotová
Author-Name: Annette Quinto Romani
Author-X-Name-First: Annette
Author-X-Name-Last: Quinto Romani
Title: Does removal of value added tax on fruit and vegetables increase sale – case of a Danish retailer
Abstract: 
 Pricing strategies are considered to be one of the important options in changing consumer food behaviour. As a result, there is a growing interest in studying the effects of interventions that promotes the healthy choice through price interventions. This paper aims to examine the effect of a pricing intervention on fruit & vegetables (F&V) in supermarkets. The intervention consisted of a removal of the 20% VAT Data on F&V sale and retailer – revenue was collected pre- and post-intervention in all chain-supermarkets. Users of ecological and conventional fruit and vegetables constituting our intervention group and the control group is users of ecological and conventional dairy products. We found a beneficial impact of the intervention on the sale and revenue related to fruit and vegetable products. The revenue and sale of fruit and vegetables increased by 354 952.60 DKK (24.92%) and 65 065.16 units (32.92%) respectively. Results suggest a beneficial impact on the sale and revenue related to fruit and vegetable products. Results show that the subsidy also had unintended impacts on the sale and revenue related to non-intervention products. That included adverse impact of the subsidy on unsubsidized healthy complementary products.
Journal: Applied Economics
Pages: 2743-2751
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866743
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866743
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2743-2751




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Omid Ranjbar
Author-X-Name-First: Omid
Author-X-Name-Last: Ranjbar
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Title: Analyzing the hysteresis properties and growth stability of renewable energy production of the U.S
Abstract: 
 By applying the non-linear quantile unit-root test and Fourier quantile unit-root test, this research investigates the hysteresis properties and growth stability of total and disaggregated renewable energy productions in the U.S. from 1973:01 to 2019:08. Unlike traditional unit-root tests that fail to reject the unit-root hypothesis, our results indicate that all renewable energy production series are stationary, but the degrees of persistence for positive and negative shocks are energy source-specific. In most cases, the negative shocks have more long-lasting effects than positive shocks. Evidence also shows that the growth rates in total biomass, hydroelectric power, wind, and biofuel energies have experienced a slowdown/meltdown, while other types of renewable energies have exhibited increasing growth rates in the current decade. Knowledge of these hysteresis/stability properties can help prevent governments from initiating a ‘one-size-ﬁts-all’ policy.
Journal: Applied Economics
Pages: 2752-2770
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869168
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869168
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2752-2770




Template-Type: ReDIF-Article 1.0
Author-Name: Sholeh A. Maani
Author-X-Name-First: Sholeh A.
Author-X-Name-Last: Maani
Author-Name: Le Wen
Author-X-Name-First: Le
Author-X-Name-Last: Wen
Title: Over-education and immigrant earnings: a penalized quantile panel regression analysis
Abstract: 
 Despite evidence that immigrants experience a higher incidence of over-education, relatively few studies have considered the labour market outcomes of over-education for immigrants. Using longitudinal data and penalized quantile panel regression, we inspect the earnings effects of job mismatches for immigrants in Australia. This first application of the method to this question addresses both individual and distributional heterogeneity. Results confirm divergent effects across the earnings distribution. Immigrants from non-English speaking countries experience lower earnings returns and a substantial earnings penalty of up to 25% from educational mismatched employment. However, in contrast to conventional findings of a penalty based on regression at the mean, at the highest earnings quantile, both Australian-born and immigrants from non-English speaking countries with a host country qualification receive earnings premiums of 2.7 and 11%, respectively, from years of over-education. We discuss the policy implications of this new result.
Journal: Applied Economics
Pages: 2771-2790
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869169
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869169
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2771-2790




Template-Type: ReDIF-Article 1.0
Author-Name: Leah Meissner
Author-X-Name-First: Leah
Author-X-Name-Last: Meissner
Author-Name: Aishwarya Rai
Author-X-Name-First: Aishwarya
Author-X-Name-Last: Rai
Author-Name: Kurt William Rotthoff
Author-X-Name-First: Kurt William
Author-X-Name-Last: Rotthoff
Title: The superstar effect in gymnastics
Abstract: 
 Tournament structures provide a unique opportunity to assess the factors that affect an agent’s decision-making. In this paper, we seek to determine the peer-effects of Simone Biles’ ‘superstar’ presence on her fellow competitors, both before and after her rise to dominance in 2013. Specifically, with our unique data, we can utilize both meet-level and athlete-level fixed effects on the athletes’ performances. We find that the gymnasts attempted more difficult routines in Biles’ weakest events. There is also evidence of support for the idea that risk taking changes when a superstar is present, showing how athletes change their approach to big events changes with and without a superstar. Lastly, we find that the standard for perfection in the sport has changed over time, which could be related to forms of judging bias.
Journal: Applied Economics
Pages: 2791-2798
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869170
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869170
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2791-2798




Template-Type: ReDIF-Article 1.0
Author-Name: Sang Cheol Lee
Author-X-Name-First: Sang Cheol
Author-X-Name-Last: Lee
Author-Name: Jaemin Lim
Author-X-Name-First: Jaemin
Author-X-Name-Last: Lim
Title: Effects of CEO characteristics on the relationship between excess cash holdings and audit effort
Abstract: 
 This study examines not only the relationship between a firm’s excess cash holdings and audit effort but also the moderating effects of CEO characteristics on the relationship. Using a sample of non-financial listed Korean companies for 2000–2014, we find that excess cash holdings have a significant positive effect on the external audit effort in terms of audit fees and audit hours. In addition, we find that the effect of excess cash holdings on audit effort is stronger when: (1) the CEO is a non-owner manager, (2) the company belongs to a conglomerate business group and (3) the CEO is in the earlier years of her or his tenure.
Journal: Applied Economics
Pages: 2905-2929
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870653
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870653
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2905-2929




Template-Type: ReDIF-Article 1.0
Author-Name: Prasenjit Chakrabarti
Author-X-Name-First: Prasenjit
Author-X-Name-Last: Chakrabarti
Author-Name: Mohammad Shameem Jawed
Author-X-Name-First: Mohammad Shameem
Author-X-Name-Last: Jawed
Author-Name: Manish Sarkhel
Author-X-Name-First: Manish
Author-X-Name-Last: Sarkhel
Title: COVID-19 pandemic and global financial market interlinkages: a dynamic temporal network analysis
Abstract: 
 The present study investigates the changes in G20 stock market dynamics and their interlinkages in the aftermath of COVID-19. It utilizes the Detrended Cross-Correlation Analysis (DCCA) along with the network and complexity theories for detecting the contagion effect of the pandemic on the stock markets. We find that both advanced and emerging stock markets, departing from their pre-crisis structures, form a tightly coupled close community after the disease outbreak – except for China that distanced itself from the rest of the cohort. This indicates that COVID-19 has caused contagion in the global equity market, which has increased the risk to international portfolio diversification benefits. The adoption of the Network theory for contagion detection technique augments the detailed understanding of the structural changes and their interlinkages among the stock markets in a more comprehensive way.
Journal: Applied Economics
Pages: 2930-2945
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870654
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870654
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2930-2945




Template-Type: ReDIF-Article 1.0
Author-Name: Peijingran Yu
Author-X-Name-First: Peijingran
Author-X-Name-Last: Yu
Author-Name: Kenneth A. Couch
Author-X-Name-First: Kenneth A.
Author-X-Name-Last: Couch
Title: Work limiting health and divorce behaviour: a retrospective analysis with SIPP data
Abstract: 
 This study examines the influence of six work-limiting health conditions that appear to arrive largely unexpectedly for married men and women – cancer, carpal tunnel syndrome, deafness or serious trouble hearing, paralysis, thyroid trouble and tumour cyst or growth – on subsequent divorce. Using information contained in the 2004 Survey of Income and Program Participation, we select men and women who are once married and had no health conditions prior to the first marriage into the sample. We find that divorce behaviour is not explained by the onset of unexpected health conditions while it is closely related to the onset of the more predictable set of all health conditions. The patterns of response vary by race and ethnicity. The article contributes to the literature by providing a more detailed comparison between the effects of less predictable health conditions on subsequent divorce behaviour versus the average effect of any work-limiting health problem.
Journal: Applied Economics
Pages: 2799-2831
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869166
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869166
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2799-2831




Template-Type: ReDIF-Article 1.0
Author-Name: Zhao Liu
Author-X-Name-First: Zhao
Author-X-Name-Last: Liu
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Yue-Jun Zhang
Author-X-Name-First: Yue-Jun
Author-X-Name-Last: Zhang
Author-Name: Chang-Xiong Qin
Author-X-Name-First: Chang-Xiong
Author-X-Name-Last: Qin
Title: The life cycle environmental rebound effect of battery electric vehicles in China: a provincial level analysis
Abstract: 
 In China, the promotion of electric vehicles is now in full swing, which is useful for carbon emission reduction. However, the rebound effect has a negative impact on the emissions reduction. In this regarding, through employing the three-stage linear approximation of the almost ideal demand system (LA-AIDS) model, well-to-wheel (WTW) method and input-output analysis (IOA) method, this article investigates the life cycle environment rebound effect (REC) of battery electric vehicles (BEVs) for 30 China’s provinces in three years, namely 2010, 2012 and 2015. The change of the REC to the variation of the cost of BEVs and the consumption expenditure is discussed as well. The estimation results indicate that the direct REC of BEVs in China ranges from 3% to 107%, while the indirect REC mainly fluctuates between −227% and 155%. Also, there are tremendous interprovincial differences in the REC of BEVs. The significant backfire effect can be found in these provinces, including Xinjiang, Qinghai, Jilin, Heilongjiang, Gansu, and Ningxia, while some provinces show super conservation effects. As for sensitivity analysis, this article indicates that the direct REC is negatively correlated with the total cost and positively related with the consumption expenditure, while the indirect REC shows the converse result.
Journal: Applied Economics
Pages: 2888-2904
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870652
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870652
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2888-2904




Template-Type: ReDIF-Article 1.0
Author-Name: Yuanyuan Gu
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Gu
Author-Name: Jhorland Ayala Garcia
Author-X-Name-First: Jhorland
Author-X-Name-Last: Ayala Garcia
Title: Educational expenditure efficiency in China: the role of the governor’s characteristics
Abstract: 
 This article studies educational efficiency in Chinese provinces following a two-step approach. Specifically, we take advantage of the selecting pattern of local officials in China to investigate the relationship between governors’ characteristics and local government educational efficiency, which has been previously ignored in the literature. First, we use a robust order-m partial frontier approach to evaluate the efficiency of the Chinese provinces in the provision of education, which represents the main sector of expenditure for local governments. Second, we estimate the relationship between efficiency and the provinces’ observable characteristics, with a special focus on the governor’s characteristics. We consider economic, institutional, and demographic variables as non-discretionary inputs. Finally, we use the Spatial Lag of X (SLX) and Spatial Durbin Model (SDM) to evaluate the possible spatial interdependence in the educational efficiency between Chinese provinces. The results show that East region provinces are the most efficient in the provision of education, while the provinces in the West region are the least efficient. Moreover, the governor’s observable characteristics, such as age, education, and experience abroad, have a significant effect on educational efficiency.
Journal: Applied Economics
Pages: 2832-2847
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869171
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869171
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2832-2847




Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Meier
Author-X-Name-First: Christoph
Author-X-Name-Last: Meier
Author-Name: Lurion De Mello
Author-X-Name-First: Lurion
Author-X-Name-Last: De Mello
Author-Name: Fabian Kukla
Author-X-Name-First: Fabian
Author-X-Name-Last: Kukla
Title: Aggregate investor confidence, price momentum and asset pricing
Abstract: 
 This article applies a new measure of aggregate investor confidence to explain the well-established factors driving stock returns in the asset pricing literature and on momentum returns. The aggregate measure extracts feedback impulses from stock market data that affect aggregate investor confidence. We find that aggregate investor confidence is positively associated with the profitability of momentum strategies and Fama–French’s small minus big (SMB) factor, providing empirical evidence in line with prominent behavioural models. Using a sample of data for the United States from 1927 to 2019, aggregate investor confidence requires around 3 months to notably affect momentum returns and remains statisticallct 3y significant for up to 16 months. Additionally, investors trade more and tilt their preference towards small market capitalization and growth stocks when confidence is high.
Journal: Applied Economics
Pages: 2848-2864
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870650
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870650
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2848-2864




Template-Type: ReDIF-Article 1.0
Author-Name: Bertrand Candelon
Author-X-Name-First: Bertrand
Author-X-Name-Last: Candelon
Author-Name: Laurent Ferrara
Author-X-Name-First: Laurent
Author-X-Name-Last: Ferrara
Author-Name: Marc Joëts
Author-X-Name-First: Marc
Author-X-Name-Last: Joëts
Title: Global financial interconnectedness: a non-linear assessment of the uncertainty channel
Abstract: 
 The role of uncertainty in the global economy is now widely recognized by policy-makers but its specific effects on the international financial system are less understood. In this paper, we assess the impact of uncertainty fluctuations on the interconnectedness within the international system of equity prices. In this respect, we extend the measure of connectedness put forward by Diebold and Yilmaz by allowing for non-linear effects through the estimation of a non-linear Threshold VAR model whose regimes depend on the level on uncertainty. Results show that high uncertainty tends to generate more connectedness among equity indexes of a set of advanced and emerging countries. From an economic policy point of view, this result suggests that in the presence of high uncertainty, an adverse financial shock in a specific country is likely to propagate more widely and more strongly to the whole financial system. This result advocates for a close real-time monitoring of uncertainty measures.
Journal: Applied Economics
Pages: 2865-2887
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870651
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870651
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2865-2887




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Flores de Frutos
Author-X-Name-First: Rafael
Author-X-Name-Last: Flores de Frutos
Author-Name: Manuel León Navarro
Author-X-Name-First: Manuel
Author-X-Name-Last: León Navarro
Author-Name: Sofía Tirado Sarti
Author-X-Name-First: Sofía
Author-X-Name-Last: Tirado Sarti
Title: ‘Will the Spanish regions converge in a near future?’
Abstract: 
 GDP and Employment of small Spanish regions seem to be I(1) variables, while their corresponding Capital Stocks seem to be I(2) variables. This contrasts with the statistical properties of the same variables for the Spanish big regions, all being I(2). The paper relates these properties with the problems of convergence shown by many Spanish regions. Also, it highlights important implications for economic policy.
Journal: Applied Economics
Pages: 3043-3053
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1871585
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1871585
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:3043-3053




Template-Type: ReDIF-Article 1.0
Author-Name: Tongyu Wang
Author-X-Name-First: Tongyu
Author-X-Name-Last: Wang
Author-Name: Shangmei Zhao
Author-X-Name-First: Shangmei
Author-X-Name-Last: Zhao
Author-Name: Guangxiang Zhu
Author-X-Name-First: Guangxiang
Author-X-Name-Last: Zhu
Author-Name: Haitao Zheng
Author-X-Name-First: Haitao
Author-X-Name-Last: Zheng
Title: A machine learning-based early warning system for systemic banking crises
Abstract: 
 Econometricians construct panel logit-based early warning systems (EWSs) as the primary predictive tool to prevent incoming systemic banking crises. Considering the actual scenario of systemic banking crises, we argue that changes in economic indicators under the crisis may impact the information extraction of EWSs based on logistic regression. According to the potential limitations of the conventional EWS and properties of the machine learning algorithm, we assume that an ‘experts voting EWS’ framework can better fit characteristics of data of systemic banking crisis. Indeed, among other machine learning classifiers tested in this paper, random forest classifier simulating experts voting process is the most efficient classifier showing relatively high generalization above 80% area under the receiver operating characteristic curve on constructing the EWS. In contrast to the conventional system, an image of evidence shows that the experts voting EWS synthesizing multivariate information may be suitable for providing systemic banking systemic crises alerts in varied contexts.
Journal: Applied Economics
Pages: 2974-2992
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870657
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870657
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:2974-2992




Template-Type: ReDIF-Article 1.0
Author-Name: Idriss Fontaine
Author-X-Name-First: Idriss
Author-X-Name-Last: Fontaine
Title: Does wife’s labour supply influence labour force participation of her elderly husband? Lessons from France
Abstract: 
 Since the mid-1990s, the labour force participation of older men and women increased substantially in France. In this paper, we investigate the effect of having a participating wife on the labour market behaviour of her elderly husband. Working with data from the French Labour Force Survey and using the cohort-specific participation rate of women at age 40 as an instrument for their current participation, we find that the magnitude of the causal relationship is strong. The likelihood of husbands’ participation increases of about 19 points when their wives are currently active in the labour market. Such findings support the view that some complementarities in leisure exist so that French married men attribute a higher value to leisure when it is shared with their wife. It also suggests that policy makers should take into account both direct and indirect effects when they implement a change in the economic environment of elderly.
Journal: Applied Economics
Pages: 2946-2961
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870655
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870655
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:2946-2961




Template-Type: ReDIF-Article 1.0
Author-Name: David Winkelmann
Author-X-Name-First: David
Author-X-Name-Last: Winkelmann
Author-Name: Christian Deutscher
Author-X-Name-First: Christian
Author-X-Name-Last: Deutscher
Author-Name: Marius Ötting
Author-X-Name-First: Marius
Author-X-Name-Last: Ötting
Title: Bookmakers’ mispricing of the disappeared home advantage in the German Bundesliga after the COVID-19 break
Abstract: 
 The outbreak of COVID-19 in March 2020 led to a shutdown of economic activities in Europe. This included the sports sector since public gatherings were prohibited. The German Bundesliga was among the first sport leagues realizing a restart without spectators. Several recent studies suggest that the home advantage of teams eroded for the remaining matches. Our paper analyses the reaction by bookmakers to the disappearance of such home advantage. We show that bookmakers had problems to adjust the betting odds in accordance with the disappeared home advantage, opening opportunities for profitable betting strategies.
Journal: Applied Economics
Pages: 3054-3064
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1873234
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1873234
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:3054-3064




Template-Type: ReDIF-Article 1.0
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: Biliang Luo
Author-X-Name-First: Biliang
Author-X-Name-Last: Luo
Title: Do small farms prefer agricultural mechanization services? Evidence from wheat production in China
Abstract: 
 Developing agricultural mechanization services has been an important approach to pushing smallholder farmers engaging modern agricultural production in China. However, whether smallholder farmers prefer adopting agricultural mechanization services is still under-analysed. In this paper, we use data covering 3,440 wheat farmers collected from Henan province in China to investigate the links between farm size and the adoption of agricultural mechanization services. The results indicate that an inverted U-shaped relationship between farm size and the adoption of agricultural mechanization services exists. We also find that small farms can input more family labour, and large farms tend to invest in self-owned machinery assets. Our analysis implies that the development of agricultural mechanization services is not inevitable to attract farmers with alternative elements, and smallholder farmers may not be the major groups involved in the market of social services in agriculture in the future.
Journal: Applied Economics
Pages: 2962-2973
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870656
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870656
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:2962-2973




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Hoesli
Author-X-Name-First: Martin
Author-X-Name-Last: Hoesli
Author-Name: Elias Oikarinen
Author-X-Name-First: Elias
Author-X-Name-Last: Oikarinen
Title: Does listed real estate behave like direct real estate? Updated and broader evidence
Abstract: 
 This study investigates a question relevant to many investors: do the broad Real Estate Investment Trust (REIT) return characteristics reflect those of the broad direct real estate markets. The paper makes several contributions to the literature in addition to using more recent data: (1) we use data for six countries (Australia, France, Germany, Netherlands, the U.K., and the U.S.); (2) we estimate both country-specific and panel models to increase the reliability and generalizability of the analysis; (3) we estimate a structural vector autoregressive model to be able to better and more reliably interpret the various shocks in the system; and (4) we investigate the effects of global liquidity shocks, among other shocks. Our results indicate that over the mid to long horizon, broad REIT and direct returns have similar characteristics and are highly correlated at the panel level. Also, the two types of exposure to real estate exhibit similar reactions to economic shocks. Thus, the paper makes a case that investors do not necessarily need to worry much about compositional effects when aiming to track broad international direct market performance by investing in listed real estate.
Journal: Applied Economics
Pages: 3023-3042
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870921
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870921
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:3023-3042




Template-Type: ReDIF-Article 1.0
Author-Name: Bing Tong
Author-X-Name-First: Bing
Author-X-Name-Last: Tong
Author-Name: Guang Yang
Author-X-Name-First: Guang
Author-X-Name-Last: Yang
Title: Interest rate fixation, excessive fluctuations and exchange rate management in China
Abstract: 
 This article proves in a New Keynesian model that interest rate fixation can explain ChinaŠs excessive business cycle fluctuations. The fixed nominal interest rate changes the propagation of external shocks, magnifies volatility of endogenous variables, and leads to economic instability. We then extend the model to a small open economy featuring capital controls, sterilized interventions and a managed exchange rate to capture the main characteristics of the Chinese economy. We prove that the magnifying effect of interest rate fixation holds in such an environment, but this effect diminishes with a more strictly managed exchange rate.
Journal: Applied Economics
Pages: 2993-3022
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870920
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870920
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:2993-3022




Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Mabruk Billah
Author-X-Name-First: Mabruk
Author-X-Name-Last: Billah
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Anne De Bruin
Author-X-Name-First: Anne
Author-X-Name-Last: De Bruin
Title: Spillovers to sectoral equity returns: do liquidity and financial positions matter?
Abstract: 
 In this paper, we investigate spillovers from regional and global equity markets to sectoral equity indices for several different regions/countries. First, we investigate the connectedness of sectoral equity return spillovers and explore the different patterns and magnitudes of spillovers. Next, we look for the determinants of sectoral equity return spillovers. We find the regional and global markets spillovers on sector equity indices are highly dispersed across different markets. Novel to the literature, we examine the liquidity and financial positions of the sectors and find that sector positions are highly influential in explaining the extent of the spillovers. Particularly, our exploration evidence that regional and global spillovers to specific sector equity markets jump significantly when a sector has higher debt and lower interest expense coverage. Similarly, higher profit margins of the sector make it less vulnerable to global and regional shocks. We also find market capitalization of the sectors inversely affects the extent of the spillovers originating from global and regional markets.
Journal: Applied Economics
Pages: 3097-3130
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1875120
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1875120
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3097-3130




Template-Type: ReDIF-Article 1.0
Author-Name: Iwanthika Rajakaruna
Author-X-Name-First: Iwanthika
Author-X-Name-Last: Rajakaruna
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Author-Name: Nelson Perera
Author-X-Name-First: Nelson
Author-X-Name-Last: Perera
Title: On public debt and twin imbalances in the South Asian region
Abstract: 
 This paper studies the impact of a country’s public debt on its twin deficits. Using panel data of five South Asian countries characterized by acute twin deficits and a high debt-to-GDP ratio for 1980–2018, we find no evidence that the budget balance wields a statistically significant impact on the current account. When the relationship between fiscal and current account deficits is conditioned on public debt levels, we find a statistically significant non-linear twin deficits relationship. For low-to-moderate debt countries with debt ratios between 46.21% and 65.80% of GDP a fiscal deficit, increase leads to a lower current account deficit. For high debt countries (i.e. debt-to-GDP ratio is above 65.80%), a rising fiscal deficit results in a larger current account deficit. Maintaining a sustainable debt-to-GDP ratio of 65.80% or lower is crucial for reducing both fiscal deficits and current account imbalances.
Journal: Applied Economics
Pages: 3080-3096
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1875119
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1875119
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3080-3096




Template-Type: ReDIF-Article 1.0
Author-Name: Vincent Fromentin
Author-X-Name-First: Vincent
Author-X-Name-Last: Fromentin
Title: Cross-border workers in the Greater Region of Luxembourg and financial instability: a non-linear approach
Abstract: 
 This article aims to study the interactions between cross-border workers from the Greater Region of Luxembourg (compared to resident workers) and financial instability. Luxembourg, located in the heart of the Greater Region, is a major international financial centre, one of the most significant aspects of which is the phenomenon of cross-border or commuting work. Interrelationships between financial fluctuations, the real economy and employment seem to operate especially in times of crisis or post-crisis, and to affect more particularly cross-border workers, whose recruitment is facilitated by service and financial intermediation companies. We propose to evaluate these interrelationships with an asymmetric non-linear ARDL (Auto Regressive Distributive Lags) staggered delay autoregressive model, which validates the predictive power of financial indicators to explain fluctuations in cross-border and resident workers.
Journal: Applied Economics
Pages: 3171-3192
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877251
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877251
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3171-3192




Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: Is the moral hazard in the Chinese labour market serious? Empirical evidence from a semi-parametric analysis
Abstract: 
 In this study, we extend the principal-agent model of moral hazard by incorporating different percentage effort choices made by the manager. Applying the semi-parametric estimation method, we estimate an extended principal-agent model of moral hazard using longitudinal data on firms and managerial compensation collected from the China Center for Economic Research database. The estimated compensation contracts confirm the non-neglected conflicts between management and shareholders, especially for managers in non-CEO or lower positions and in medium or large firms. Moral hazard is serious in large firms in the natural resources and manufacturing, as well as commercial product industries. Most managers’ compensation in these firms can not induce more than $$60\% $$60% effort.
Journal: Applied Economics
Pages: 3131-3170
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1875121
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1875121
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3131-3170




Template-Type: ReDIF-Article 1.0
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Title: The relationship between the Covid-19 media coverage and the Environmental, Social and Governance leaders equity volatility: a time-frequency wavelet analysis
Abstract: 
 We apply wavelet analyses to study how the social media coverage of the Covid-19 pandemic influenced the volatility of ESG (Environmental, Social and Governance) leaders indices encompassing World, USA, Europe, China, and Emerging Markets. We document intervals of low, medium, and high coherence between the Media Coverage Index and the price moves of the ESG Leaders indices. The low coherence intervals indicate the diversification potential of ESG investments during a systemic pandemic such as Covid-19. We document differences in the pattern exhibited by various geographical indices evidencing their potential role for designing cross-geography hedge strategies.
Journal: Applied Economics
Pages: 3193-3206
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877252
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877252
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3193-3206




Template-Type: ReDIF-Article 1.0
Author-Name: Tianheng Wang
Author-X-Name-First: Tianheng
Author-X-Name-Last: Wang
Title: The effect of female education on child mortality: evidence from Indonesia
Abstract: 
 This paper examines the effect of female education on child mortality in Indonesia by exploiting a one-time change in the length of the 1978 school year as a source of exogenous variation in education. The results show that the education reform increases women’s educational attainment by 0.76 years and that one additional year of female education leads to a decrease in neonatal mortality by 0.5 percentage points. Mechanism analysis suggests that higher female education postpones the timing of marriage and of first birth, leads to higher quality of spouse and higher household wealth and increases the use of prenatal health care and mass media. However, I do not find significant impacts of female education on women’s empowerment in the household.
Journal: Applied Economics
Pages: 3207-3222
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877253
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877253
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3207-3222




Template-Type: ReDIF-Article 1.0
Author-Name: Lu Huang
Author-X-Name-First: Lu
Author-X-Name-Last: Huang
Author-Name: Lihua Wang
Author-X-Name-First: Lihua
Author-X-Name-Last: Wang
Author-Name: Zhusheng Liu
Author-X-Name-First: Zhusheng
Author-X-Name-Last: Liu
Author-Name: Yujie Li
Author-X-Name-First: Yujie
Author-X-Name-Last: Li
Title: Evolutionary game analysis of green industry development in the age of sharing economy
Abstract: 
 Sharing economy is also a kind of green economy in essence, which brings opportunities for the development of resource-sharing green industry. By constructing a general evolutionary game model of green industry, the evolutionary stability strategy of green industry system is obtained, and the internal mechanism of the spontaneous evolution of green industry is explained. Furthermore, by comparing the evolutionary game model and numerical simulation results of two green industry development models of factor input and resource sharing in the era of sharing economy, it is found that compared with the factor input development model, the resource-sharing development model is easier to realize the evolutionary game equilibrium between enterprises and consumers. Enriching government subsidies and strengthening consumer guide will help promote the development of resource-sharing green industry.
Journal: Applied Economics
Pages: 3065-3079
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1874609
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1874609
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3065-3079




Template-Type: ReDIF-Article 1.0
Author-Name: Ludivine Martin
Author-X-Name-First: Ludivine
Author-X-Name-Last: Martin
Author-Name: Uyen T. Nguyen-Thi
Author-X-Name-First: Uyen T.
Author-X-Name-Last: Nguyen-Thi
Author-Name: Caroline Mothe
Author-X-Name-First: Caroline
Author-X-Name-Last: Mothe
Title: Human resource practices, perceived employability and turnover intention: does age matter?
Abstract: 
 This paper investigates the age specificities in the link between employee’s perceived external employability and turnover intention and how the use of human resource practices moderates this relationship. Results show that the use of motivation-enhancing HR practices induces a larger retention effect for younger and middle-aged employees than for older ones, whereas the turnover intention effects of flexibility-enhancing HR practices are stronger for the middle-age and older groups than for the younger groups. Moreover, the use of HR practices that stimulate employees’ motivation, such as training, participation, voice and teamwork, plays a stronger role in retaining highly employable younger employees, while the use of HR practices that offer flexibility, such as flexible working time, teleworking and work-life balance, enables retaining highly employable older employees.
Journal: Applied Economics
Pages: 3306-3320
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1886238
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1886238
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3306-3320




Template-Type: ReDIF-Article 1.0
Author-Name: Dietrich Earnhart
Author-X-Name-First: Dietrich
Author-X-Name-Last: Earnhart
Author-Name: Donna Ramirez Harrington
Author-X-Name-First: Donna Ramirez
Author-X-Name-Last: Harrington
Title: Effects of audit frequency, audit quality, and facility age on environmental compliance
Abstract: 
 This study explores the effect of environmental self-audits (‘audits’), which represent an important type of environmental management system practice, on the extent of facilities’ compliance with wastewater discharge limits. Previous studies of environmental audits explore either the presence or frequency of audits only, while ignoring the quality of audits and heterogeneous effects across facility types. Our study contributes to the economic literature by examining the role of audit quality, as measured by the comprehensiveness of the audit protocol, and the influence of facility age on the effectiveness of more frequent auditing. These two features prove important especially in combination. Our study empirically examines the U.S. chemical manufacturing sector using survey and publicly available EPA data. Empirical results reveal that more frequent audits improve the extent of compliance but only for older facilities and only when these facilities conduct high quality audits. In contrast, for newer facilities, more frequent high quality audits fail to improve compliance; worse yet, more frequent low quality audits sadly undermine compliance. Both sets of results are consistent with our hypotheses.
Journal: Applied Economics
Pages: 3234-3252
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1854449
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854449
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3234-3252




Template-Type: ReDIF-Article 1.0
Author-Name: Kazuaki Okamura
Author-X-Name-First: Kazuaki
Author-X-Name-Last: Okamura
Author-Name: Nizamul Islam
Author-X-Name-First: Nizamul
Author-X-Name-Last: Islam
Title: Effects of the timing of childbirth on female labor supply: an analysis using the sequential matching approach
Abstract: 
 This study estimates the effects of childbirth on female labour supply using Japanese data. The original contributions of our study are twofold. First, we include the preference for having children as a time-varying confounding variable in the effects of childbirth on female labour supply. Second, we apply a dynamic version of the sequential matching approach to analyse the causal effects of childbirth on female labour market outcomes. The results show that childbirth decreases current employment outcomes (participation as regular and non-regular workers) and that this decrease is more pronounced among regular workers than non-regular workers. At the time of childbirth, while the negative effects of childbirth on choosing regular work increase when childbirth age is delayed, the negative effects on choosing non-regular work are slightly decreased by delaying the age of childbirth. Regarding future employment outcomes, childbirth does not affect the probability of choosing non-regular work in the next period, regardless of childbirth age. In contrast, delayed childbirth decreases the probability of choosing regular work in the next period significantly.
Journal: Applied Economics
Pages: 3253-3266
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1855320
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855320
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3253-3266




Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Nan Wang
Author-X-Name-First: Chia-Nan
Author-X-Name-Last: Wang
Author-Name: Min-Chun Yu
Author-X-Name-First: Min-Chun
Author-X-Name-Last: Yu
Author-Name: Nguyen-Nhu-Y Ho
Author-X-Name-First: Nguyen-Nhu-Y
Author-X-Name-Last: Ho
Author-Name: Thi-Nham Le
Author-X-Name-First: Thi-Nham
Author-X-Name-Last: Le
Title: An integrated forecasting model for the coffee bean supply chain
Abstract: 
 Coffee is the most traded commodity after petroleum. The Vietnamese coffee bean industry has raised concerns lately over an inefficient coffee value chain; bets on coffee price uncertainty are increasing worldwide in the current. Accurate optimization of coffee bean prices helps manufacturers to control an unpredictable market and upgrade cooperativeness in sustainable agriculture. The authors proposed a forecasting method to deal with demand volatility and uncertainty in volumes and coffee bean prices. In this paper, we applied the forecasting nonlinear grey Bernoulli model (NGBM) (1,1). NGBM (1,1), which is based on the parameter optimization algorithm, can increase the precision of predictions. NGBM (1,1) was integrated with Fourier residual modification model to forecast coffee bean price, which was a crucial factor in the Vietnamese coffee bean supply chain. The price of coffee beans was calculated using a differential equation in an uncertain system, along with actual data collected over the past six years. The results of this study demonstrate that an integrated forecasting model is an effective forecasting method. This research can help companies to control risks that come with uncertain coffee prices and reduce risks in the sustainable agriculture supply chain.
Journal: Applied Economics
Pages: 3321-3333
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1887447
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1887447
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3321-3333




Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Zhongqingyang Zhang
Author-X-Name-First: Zhongqingyang
Author-X-Name-Last: Zhang
Author-Name: Yuan Huang
Author-X-Name-First: Yuan
Author-X-Name-Last: Huang
Author-Name: Weifang Mao
Author-X-Name-First: Weifang
Author-X-Name-Last: Mao
Title: Quantile heterogeneous impact of R&D on firm growth in Chinese manufacture: how ownership, firm size and sectors matter?
Abstract: 
 This paper explores the heterogeneous impact of R&D on firm growth in Chinese manufacturing industry during the periods 2012–2017. We divide the full sample into sub-samples according to different ownership, firm size and sectors, respectively, which help comprehensive observe the impact of R&D on firm growth. The results indicate that R&D has a significant positive impact on firm growth, and that R&D of private enterprises has a greater impact on firm growth than that of state-owned enterprises across all quantiles. Moreover, we find the R&D effectiveness of non-small and medium-sized enterprises is significantly greater than that of SMEs. Additionally, persuasive evidence proves the existence of an inverted-U relationship between R&D and firm growth, except for higher-growth state-owned SMEs. The results also indicate that R&D plays a more significantly positive role in high-tech industries. Our finding suggests that policymakers should encourage R&D investment in manufacturing industry to promote firm growth. But policymaker must classify firms, observe R&D intensity turning points of firms with different types, formulate meticulous R&D strategies, and maximize R&D utility.
Journal: Applied Economics
Pages: 3267-3287
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1873235
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1873235
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3267-3287




Template-Type: ReDIF-Article 1.0
Author-Name: Zhengxun Tan
Author-X-Name-First: Zhengxun
Author-X-Name-Last: Tan
Author-Name: Juan Liu
Author-X-Name-First: Juan
Author-X-Name-Last: Liu
Author-Name: Peng Chen
Author-X-Name-First: Peng
Author-X-Name-Last: Chen
Title: The trend and cycle components of China’s housing prices: a new decomposition method
Abstract: 
 The paper proposes a novel hybrid method that extends previous work incorporating the fractionally cointegrated vector autoregressive and the permanent-transitory decomposition model. Using the hybrid method, we investigate whether the rapid rise in China’s housing prices is a trend or cyclical fluctuation as well as whether there exists a housing price bubble. The findings indicate there exists a fractional cointegration relationship between housing prices and macroeconomic fundamentals in China, and that the fundamental value of housing prices is determined by macroeconomic factors. In particular, the upward trend in China’s housing prices has shifted and decelerated since 2012, in line with GDP and money supply. Moreover, we provide evidence of the existence of a housing price bubble in China since 2012, particularly during the 2015–2018 period. We demonstrate that the hybrid model has a superior forecasting performance and decomposes the trend and cycle components more accurately than the conventional methods when estimating a system of possibly fractional cointegration relationship.
Journal: Applied Economics
Pages: 3288-3305
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877254
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877254
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3288-3305




Template-Type: ReDIF-Article 1.0
Author-Name: Jying-Nan Wang
Author-X-Name-First: Jying-Nan
Author-X-Name-Last: Wang
Author-Name: Hung-Chun Liu
Author-X-Name-First: Hung-Chun
Author-X-Name-Last: Liu
Author-Name: Shuang Zhang
Author-X-Name-First: Shuang
Author-X-Name-Last: Zhang
Author-Name: Yuan-Teng Hsu
Author-X-Name-First: Yuan-Teng
Author-X-Name-Last: Hsu
Title: How does the informed trading impact Bitcoin returns and volatility?
Abstract: 
 This study employed an augmented AR-GJRGARCH model that incorporates an intraday-based buy-sell order size imbalance measure to explore how informed trading behaviour/activity impacted Bitcoin returns and volatility from January 2014 to February 2019. Our results show that the informed trading behaviour dominated by sell-order significantly led to decreased concurrent Bitcoin returns for alternative sample periods. However, the informed trading behaviour dominated by buy-order related positively to Bitcoin returns only for the full sample period. Moreover, the informed trading activity helped to reduce Bitcoin’s volatility, which is consistent with expectations based on dispersion of beliefs models. Finally, we uncovered a positive (inverted) asymmetric volatility effect for both the full and the rising sample periods, indicating the presence of the ‘fear of missing out’ psychological effect.
Journal: Applied Economics
Pages: 3223-3233
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1814944
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814944
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3223-3233




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Kalb
Author-X-Name-First: Alexander
Author-X-Name-Last: Kalb
Author-Name: Benny Geys
Author-X-Name-First: Benny
Author-X-Name-Last: Geys
Author-Name: Friedrich Heinemann
Author-X-Name-First: Friedrich
Author-X-Name-Last: Heinemann
Title: Value for money? German local government efficiency in a comparative perspective
Abstract: 
 In this article, we investigate the cost efficiency of German local governments in the state of Baden-Württemberg in 2004 using a stochastic frontier approach. Besides being the first study on German data, we add two elements to the literature. First, we provide a comparative perspective, allowing us to embed our results in the broader literature. Second, unlike most previous studies, we explicitly account for exogenous or nondiscretionary influences when estimating municipal efficiency scores. The results suggest that disregarding such exogenous factors can lead to significant and systematic bias in the estimated inefficiency levels. Particularly, underestimation of efficiency occurs for municipalities with high tourist activity, while the reverse is true for municipalities with high unemployment.
Journal: Applied Economics
Pages: 201-218
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502110
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502110
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:201-218




Template-Type: ReDIF-Article 1.0
Author-Name: José Cuesta
Author-X-Name-First: José
Author-X-Name-Last: Cuesta
Author-Name: Camilo Bohórquez
Author-X-Name-First: Camilo
Author-X-Name-Last: Bohórquez
Title: Soccer and national culture: estimating the impact of violence on 22 lads after a ball
Abstract: 
 Sports have been recently conceptualized as an effective tool for development. Questioning that argument, recent evidence suggests that the practice of soccer reveals national cultures of violence prevailing in players’ countries of origin. We model violent behaviour in the soccer pitch as a function of game specific controls as well as socioeconomic, political, cultural and conflict variables characterizing players’ home countries. We construct a database for the Latin American 2008 Libertadores Cup Competition and find that across multiple specifications and estimating techniques, only game specific variables determine sanctions to violent actions. There are three compatible explanations for this result: highly skilled soccer players may not be representative average citizens; violent conflicts may not necessarily cause a violent culture affecting all corners of society; and even when violent cultures are transmitted to individual players, those values do not condition significantly their behaviour during games. After all, sports may not be a pernicious activity that intrinsically transmits violent values to youths.
Journal: Applied Economics
Pages: 147-161
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500275
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500275
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:147-161




Template-Type: ReDIF-Article 1.0
Author-Name: Luis E. Arango
Author-X-Name-First: Luis E.
Author-X-Name-Last: Arango
Author-Name: Fernando Arias
Author-X-Name-First: Fernando
Author-X-Name-Last: Arias
Author-Name: Adriana Flórez
Author-X-Name-First: Adriana
Author-X-Name-Last: Flórez
Title: Determinants of commodity prices
Abstract: 
 A panel of annual information between 1960 and 2006 for approximately 50 different commodity prices and some other variables and sources is used to tests the determinants of commodity prices. According to the evidence, interest rates seem to maintain a negative relationship with commodity prices.
Journal: Applied Economics
Pages: 135-145
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500273
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500273
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:135-145




Template-Type: ReDIF-Article 1.0
Author-Name: Antonios Georgopoulos
Author-X-Name-First: Antonios
Author-X-Name-Last: Georgopoulos
Author-Name: Kostas Karamanis
Author-X-Name-First: Kostas
Author-X-Name-Last: Karamanis
Title: The implications of the liberalization in telecommunication markets for market structure and price policy: evidence from a small open economy
Abstract: 
 This study analyses the impact of liberalization on market structure and pricing in the Greek telecommunication market from 1992 to 2005. The data refers to 44 of the most prominent companies of fixed telephony, mobile telephony and internet services and was compiled by means of interviews with the help of a questionnaire. Our descriptive analysis concluded that liberalization of the telecommunication market reduced its concentration degree, increased competition and induced price cuts. This conclusion is supported by other research studies concerning other countries of the EU, since Greece as an EU member country has also implemented the respective European policy in the specific industry. As far as the econometric level is concerned, we used panel Feasible Generalized Least Squares (FGLS). FGLS is an appropriate tool for samples such as our own, composed by intersectoral data that extend to more than one time periods, and without correlation between the unobserved effects and the interpretative variables. Our econometric research showed that both private ownership and specialized personnel in the commercial and technical sector seem to positively influence the companies' market share. In turn, a large market share offers companies more freedom to cut down prices in their services. However, there is still considerable need for econometric research in this field.
Journal: Applied Economics
Pages: 253-263
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.505556
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505556
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:253-263




Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Dong Lee
Author-X-Name-First: Ki-Dong
Author-X-Name-Last: Lee
Author-Name: Seok-Joon Hwang
Author-X-Name-First: Seok-Joon
Author-X-Name-Last: Hwang
Author-Name: Min-hwan Lee
Author-X-Name-First: Min-hwan
Author-X-Name-Last: Lee
Title: Agglomeration economies and location choice of Korean manufacturers within the United States
Abstract: 
 Employing the micro data for 1997–2004, we investigate the location decision of Korean-affiliated manufacturing investments in the United States. The conditional logit estimates confirm that although industry-specific Korean agglomeration and domestic agglomeration play an important role, the Foreign Direct Investment (FDI) location is more sensitively affected by the interstate difference in endowment conditions than by the same nationality agglomeration. Both business service and intermediate good agglomeration are main determinants of FDI location. Furthermore, estimation results show substantial change in the location pattern after recovery from the Asian financial crisis. We find quite different patterns of location decision across industry groups; dispersion forces work greater than the agglomeration force in the consumer goods industry, forward linkages with US upstream firms can be seen in the assembly and processing industry, and typical follow-the-leader pattern mixed with market potential effect by Korean immigrants is seen in the basic material manufacturing industry.
Journal: Applied Economics
Pages: 189-200
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502109
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502109
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:189-200




Template-Type: ReDIF-Article 1.0
Author-Name: Bernhard Michel
Author-X-Name-First: Bernhard
Author-X-Name-Last: Michel
Author-Name: François Rycx
Author-X-Name-First: François
Author-X-Name-Last: Rycx
Title: Does offshoring of materials and business services affect employment? Evidence from a small open economy
Abstract: 
 The fear of massive job losses has prompted a fast-growing literature on offshoring and its impact on employment in advanced economies. This article examines the situation for Belgium. It improves the offshoring intensity measure by computing a volume measure of the share of imported intermediates in output, and it is among the first to address both materials and business services offshoring to high wage and low wage countries. Estimations of static and dynamic industry-level labour demand equations augmented by offshoring intensities do not reveal a significant impact of either materials or business services offshoring on total employment for Belgium between 1995 and 2003. This result holds for both the manufacturing sector and the service sector and it proves robust to splitting the manufacturing sector into high technology and low technology industries.
Journal: Applied Economics
Pages: 229-251
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.503932
File-URL: http://hdl.handle.net/10.1080/00036846.2010.503932
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:229-251




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Stephan Popp
Author-X-Name-First: Stephan
Author-X-Name-Last: Popp
Title: A nonlinear approach to testing the unit root null hypothesis: an application to international health expenditures
Abstract: 
 In this article, we examine the unit root null hypothesis for per capita total Health Expenditures (HEs), per capita private HEs and per capita public HEs for 29 Organization for Economic Co-operation and Development (OECD) countries. The novelty of our work is that we use a new nonlinear unit root test that allows for one structural break in the data series. We find that for around 45% of the countries, we are able to reject the unit root hypothesis for each of the three HE series. Moreover, using Monte Carlo simulations, we show that our proposed unit root model has better size and power properties than the widely used Augmented Dickey–Fuller (ADF) and Lagrange Multiplier (LM) type tests.
Journal: Applied Economics
Pages: 163-175
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500276
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500276
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:163-175




Template-Type: ReDIF-Article 1.0
Author-Name: Roger Bowles
Author-X-Name-First: Roger
Author-X-Name-Last: Bowles
Author-Name: Chrisostomos Florackis
Author-X-Name-First: Chrisostomos
Author-X-Name-Last: Florackis
Title: Impatience, reputation and offending
Abstract: 
 Reconviction rates for offenders are high despite sentence severity increasing with the number of convictions. The standard one-shot model of crime provides little scope for exploring ‘persistence effects’, although recent papers by Emons and others have sought to put offending decisions into a more dynamic setting. This article develops a simple two-period model of offending in which criminal convictions act as an adverse signal in labour markets. Ordinary and multinomial logistic regression modelling is used to test the predictions of the theoritical model and explore the link between unemployment and convictions. The empirical results, which are based on longitudinal data from the National Child Development Study (NCDS) in the UK, strongly support the view that, ceteris paribus, individuals with previous convictions are at higher risk of being unemployed.
Journal: Applied Economics
Pages: 177-187
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500277
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500277
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:177-187




Template-Type: ReDIF-Article 1.0
Author-Name: Robert Rosenman
Author-X-Name-First: Robert
Author-X-Name-Last: Rosenman
Author-Name: Scott Goates
Author-X-Name-First: Scott
Author-X-Name-Last: Goates
Author-Name: Laura Hill
Author-X-Name-First: Laura
Author-X-Name-Last: Hill
Title: Participation in universal prevention programmes
Abstract: 
 We analyse family decisions to participate in community-based universal substance-abuse prevention programmes through the framework of expected utility theory. Family functioning, which has been shown to be a good indicator of child risk for substance abuse, provides a useful reference point for family decision making. Our results show that well-functioning families (with children at low risk for substance use) should have the lowest incentive to participate, but that high-risk families may also opt out of prevention programmes. For programmes that are most effective for high-risk youth, this could be a problem. Using data from the Strengthening Families Programme (SFP) and the Washington Healthy Youth Survey (HYS), we empirically test the implications of our model and find that at least for one measure of family functioning those families with children most likely to be at risk for substance use are opting out of the programme.
Journal: Applied Economics
Pages: 219-228
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502111
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502111
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:219-228




Template-Type: ReDIF-Article 1.0
Author-Name: María Belén Lozano
Author-X-Name-First: María Belén
Author-X-Name-Last: Lozano
Title: Analysing the effect of excess cash accumulation on financial decisions
Abstract: 
 In this current moment of crisis it is very important for firms to hold a suitable amount of cash. But it is also very important to analyse how this amount of cash affects firm value. Here an in-depth study is made of the determination of firm value centring our attention on the problem of excess cash accumulation. This article adds important value to the existing literature since, employing the panel data methodology in the sample of Spanish nonfinancial firms, it identifies whether excess cash holding affects firm value in general, and investment, financing and dividend decisions in particular. The results show how asymmetric information among the economic agents of the firm affects the cash reserves. In particular, shareholders could penalize the investment made by these firms and consider the positive effect that the debt in particular and the dividend policies exert on the firm. Moreover, the results reveal the importance of financial flexibility as opposed to the arguments provided by agency theory.
Journal: Applied Economics
Pages: 2687-2698
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566195
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566195
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2687-2698




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobo Wu
Author-X-Name-First: Xiaobo
Author-X-Name-Last: Wu
Author-Name: Yanbin Jiang
Author-X-Name-First: Yanbin
Author-X-Name-Last: Jiang
Title: Sectoral role change in transition China: a network analysis from 1990 to 2005
Abstract: 
 In this article, by using the data collected from input–output table, we conduct a detailed investigation on the evolution pattern during economy development of China from 1990 to 2005. By using network analysis at national, cluster and individual level, we find some interesting insights, also in order to identify the difference between cluster levels, we proposed a cluster centralization method to analyse the role of the cluster in the network. This study shows that during the transition process of China, there exist some similarity and differences in each selected time. Each period studied have some similar distributions of key sectors, including the cores, i.e. chemical industry, nonmetallic mineral products, construction, business. However, significant differences also exists, for example, the 2005 system is characterized as higher degrees of systemic connection and hierarchy, while the 1990s system has looser density and less centralization. Additionally, the high tech clusters (i.e. electronics and instruments) including high tech industry (i.e. electronics and telecommunications equipment manufacturers) has played a much more important role in 2005 than that in early 1990s. Also the high tech cluster and service cluster have contributed a lot to the transition and development of the whole country, the results also confirm that some theory concluded from developed country can also applied to developing economies such as China.
Journal: Applied Economics
Pages: 2699-2715
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566196
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566196
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2699-2715




Template-Type: ReDIF-Article 1.0
Author-Name: Oluyemisi Kuku
Author-X-Name-First: Oluyemisi
Author-X-Name-Last: Kuku
Author-Name: Steven Garasky
Author-X-Name-First: Steven
Author-X-Name-Last: Garasky
Author-Name: Craig Gundersen
Author-X-Name-First: Craig
Author-X-Name-Last: Gundersen
Title: The relationship between childhood obesity and food insecurity: a nonparametric analysis
Abstract: 
 Childhood obesity and food insecurity are major public health concerns in the United States and other developed countries. Research on the relationship between the two has provided mixed results across a variety of data sets and empirical methods. Common throughout this research, however, is the use of parametric frameworks for empirical analyses. This study moves beyond parametric methods by examining the relationship between childhood obesity and food insecurity among low-income children with nonparametric regression techniques. We examine data from the Child Development Supplement (CDS) of the Panel Study of Income Dynamics (PSID), a nationally representative data set from the US. Consistent with recent work, our parametric analyses indicate that there is no statistically significant relationship between childhood obesity and food insecurity. In contrast, our nonparametric results indicate that the probability of being obese varies markedly with the level of food insecurity being experienced by the child. Moreover, this relationship differs across relevant subgroups including those defined by gender, race/ethnicity and income. Fully understanding the relationship between childhood obesity and food insecurity has significant policy implications.
Journal: Applied Economics
Pages: 2667-2677
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566192
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566192
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2667-2677




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Christoph Ruelke
Author-X-Name-First: Jan Christoph
Author-X-Name-Last: Ruelke
Author-Name: Christian Pierdzioch
Author-X-Name-First: Christian
Author-X-Name-Last: Pierdzioch
Author-Name: Georg Stadtmann
Author-X-Name-First: Georg
Author-X-Name-Last: Stadtmann
Title: On the internal consistency of short-term, medium-term and long-term oil price forecasts
Abstract: 
 We derive internal consistency restrictions on short-, medium- and long-term oil price forecasts. We then analyse whether oil price forecasts extracted from the Survey of Professional Forecasters (SPF) conducted by the European Central Bank (ECB) satisfy these internal consistency restrictions. We find that neither short-term forecasts are consistent with medium-term forecasts nor that medium-term forecasts are consistent with long-term forecasts. Using a more complex expectation formation structure featuring a distributed lag structure, however, we find stronger evidence of internal consistency of medium-term forecasts with long-term forecasts.
Journal: Applied Economics
Pages: 2757-2765
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566201
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566201
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2757-2765




Template-Type: ReDIF-Article 1.0
Author-Name: Kishor Sharma
Author-X-Name-First: Kishor
Author-X-Name-Last: Sharma
Author-Name: Pemasiri J. Gunawardana
Author-X-Name-First: Pemasiri J.
Author-X-Name-Last: Gunawardana
Title: The role of price and nonprice factors in predicting Australia's trade performance
Abstract: 
 This article investigates the role of price and nonprice factors in predicting Australia's trade performance. Results broadly suggest that Australia's trade performance is largely explained by the nonprice factors namely, R&D, reliability of domestic supply, aggregate world demand and Foreign Direct Investment (FDI) flows in long run. Price factors such as, relative price of Australian exports and domestic prices are also important predictors of trade competitiveness. The policy implications of these findings are that there are dividends in terms of improved trade performance by encouraging R&D expenditure, attracting FDI, improving domestic supply and implementing appropriate policies to improve price competitiveness.
Journal: Applied Economics
Pages: 2679-2686
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566193
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566193
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2679-2686




Template-Type: ReDIF-Article 1.0
Author-Name: M. Piracha
Author-X-Name-First: M.
Author-X-Name-Last: Piracha
Author-Name: Y. Zhu
Author-X-Name-First: Y.
Author-X-Name-Last: Zhu
Title: Precautionary savings by natives and immigrants in Germany
Abstract: 
 This article analyses the savings behaviour of natives and immigrants in Germany. It is argued that uncertainty about future income and legal status (in case of immigrants) is a key component in the determination of the level of precautionary savings. Using the German dataset, we exploit a natural experiment arising from a change in the nationality law in Germany to estimate the importance of precautionary savings. Using a Difference-in-Differences (DiD) approach, we find a significant reduction in savings and remittances for immigrants after the easing of citizenship requirements, compared to the pre-reform period. Our parametric specification shows that introduction of the new nationality law reduces the gap in marginal propensity to save between natives and immigrants by up to 80%. These findings suggest that many of the differences in terms of the savings behaviour between natives and immigrants are driven by the savings arising from the uncertainties about future income and legal status rather than cultural differences.
Journal: Applied Economics
Pages: 2767-2776
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566202
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566202
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2767-2776




Template-Type: ReDIF-Article 1.0
Author-Name: Hong-wei Zhang
Author-X-Name-First: Hong-wei
Author-X-Name-Last: Zhang
Author-Name: Wei-guo Chen
Author-X-Name-First: Wei-guo
Author-X-Name-Last: Chen
Author-Name: Jie Zhang
Author-X-Name-First: Jie
Author-X-Name-Last: Zhang
Title: Urban–rural income disparities and development in a panel data set of China for the period from 1978 to 2006
Abstract: 
 We examine the relationship between urban–rural income disparities and development in a panel data set of 30 provinces and regional subsets of China during the period of 1978 to 2006. There is an inverted-U relationship between the urban–rural income gap and per capita Gross Domestic Product (GDP). Financial development by scale widens the urban–rural income gap in all regional samples, while financial sector efficiency and rural bank loans may reduce it in some regions. Government spending raises the urban–rural income gap as well. We also examine the effects of urbanization, openness and education.
Journal: Applied Economics
Pages: 2717-2728
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566197
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566197
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2717-2728




Template-Type: ReDIF-Article 1.0
Author-Name: David E. Bloom
Author-X-Name-First: David E.
Author-X-Name-Last: Bloom
Author-Name: David Canning
Author-X-Name-First: David
Author-X-Name-Last: Canning
Author-Name: Erica S. Shenoy
Author-X-Name-First: Erica S.
Author-X-Name-Last: Shenoy
Title: The effect of vaccination on children's physical and cognitive development in the Philippines
Abstract: 
 We use data from the Cebu Longitudinal Health and Nutrition Survey (CLHNS) in the Philippines to link vaccination in the first 2 years of life with later physical and cognitive development in children. We use propensity score matching to estimate the causal effect of vaccination on child development. We find no effect of vaccination on later height or weight, but full childhood vaccination for measles, polio, Tuberculosis (TB), Diphtheria, Pertussis and Tetanus (DPT) significantly increases cognitive test scores relative to matched children who received no vaccinations. The size of the effect is large, raising test scores, on average, by about half an SD.
Journal: Applied Economics
Pages: 2777-2783
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566203
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566203
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2777-2783




Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Simon Sturn
Author-X-Name-First: Simon
Author-X-Name-Last: Sturn
Title: The impact of monetary policy on unemployment hysteresis
Abstract: 
 This article investigates the hypothesis that the extent to which hysteresis occurs in the aftermath of recessions depends on monetary policy reactions. The degree of hysteresis is explained econometrically by the extent of monetary easing during a recession and by standard variables for labour market institutions in a pooled cross country analysis using quarterly data. The sample includes 40 recessions in 19 Organization for Economic Co-operation and Development (OECD) countries for which the required data is available. The time period lasts for the period from 1980 to 2007. This article builds on Ball (1999) and extends the sample of countries, the time period under investigation and the set of control variables.
Journal: Applied Economics
Pages: 2743-2756
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566199
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566199
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2743-2756




Template-Type: ReDIF-Article 1.0
Author-Name: Themis Kokolakakis
Author-X-Name-First: Themis
Author-X-Name-Last: Kokolakakis
Author-Name: Fernando Lera-López
Author-X-Name-First: Fernando
Author-X-Name-Last: Lera-López
Author-Name: Thanos Panagouleas
Author-X-Name-First: Thanos
Author-X-Name-Last: Panagouleas
Title: Analysis of the determinants of sports participation in Spain and England
Abstract: 
 This article investigates the role of sociodemographic characteristics, educational and economic variables on sports participation in a comparative way in two European countries: Spain and England. Adopting a broad concept of sport, as in the common European approach, we analyse the determinants of sports participation in 40 different professional and nonprofessional sports and recreational activities in both countries. The research involves a comparative analysis between the data of England and Spain based on two logistic regressions. The regression equation of every country tests the effect of 17 binary explanatory variables on a dependent binary variable for participation. Higher education level, professional occupation, younger age and being male are all factors associated with more sports participation. Although there is no difference in the direction of the factor effects on participation between England and Spain, there is considerable variation in their relative strength, which has sport policy implications in the two nations.
Journal: Applied Economics
Pages: 2785-2798
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566204
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566204
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2785-2798




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Yau Man Ze-To
Author-X-Name-First: Samuel Yau Man
Author-X-Name-Last: Ze-To
Title: Estimating value-at-risk under a Heath–Jarrow–Morton framework with jump
Abstract: 
 This article proposes a new methodology for measuring Value-at-Risk (hereafter VaR) using a model that incorporates both volatility and jumps. Heath–Jarrow–Morton (HJM) model has been used for the valuation of interest rate derivatives. This study extends the use of HJM model to the estimation VaR. This article specifically uses a two-factor HJM jump-diffusion model for the computation. The study models the Eurodollar futures prices using its derivatives. In addition, this article uses a new volatility specification of Ze-To (2002) to construct the HJM dynamics. The result indicates that the VaR model using HJM jump-diffusion framework performs well in capturing the nonnormality and in providing accurate VaR forecasts in the in-sample and out-sample tests.
Journal: Applied Economics
Pages: 2729-2741
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566198
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566198
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2729-2741




Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Ayari
Author-X-Name-First: Nadia
Author-X-Name-Last: Ayari
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Pedro Mendi
Author-X-Name-First: Pedro
Author-X-Name-Last: Mendi
Title: Renewable energy innovations in Europe: a dynamic panel data approach
Abstract: 
 We investigate the determinants of renewable energy R&D intensity and the impact of renewable energy innovations on firm performance, using several dynamic panel data models. We estimate these models using a large data set of European firms from 19 different countries, with some patenting activity in areas related to renewable energies during the 1987 to 2007 period. Our results confirm our priors on the determinants of the rapid development of renewable energy R&D intensity during the past decades. Additionally, we find evidence that renewable patent intensity has a significant dynamic impact on the stock market value of firms.
Journal: Applied Economics
Pages: 3135-3147
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570720
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570720
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3135-3147




Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed A. Marouani
Author-X-Name-First: Mohamed A.
Author-X-Name-Last: Marouani
Author-Name: David A. Robalino
Author-X-Name-First: David A.
Author-X-Name-Last: Robalino
Title: Assessing interactions among education, social insurance and labour market policies in Morocco
Abstract: 
 This article develops a general equilibrium model to assess the impact that integrated reforms of macroeconomic, education and social protection policies can have on employment. The model presents three innovations. First, it formalizes the production of skills in the economy by following sex–age cohorts through the various levels of the education and training systems, given dropout and repetition rates. Second, it incorporates a module that projects social insurance expenditures as a function of the demographic structure of the country and the rules of the pension system. Finally, it develops a very detailed description of the labour market, where informality reflects strategic decisions by workers and not necessarily exclusion. The model is applied to Morocco. The results of various simulations illustrate the importance of coordinating macro, education and social protection policies in order to achieve meaningful effects on employment levels. In particular, we show that isolated interventions to improve the internal efficiency of the education system can aggravate the unemployment problem; that subsidies to investments are more efficient in sectors intensive in skilled labour; and that not controlling the growth of pension expenditures and the tax-wedge can depress employment in the formal sector.
Journal: Applied Economics
Pages: 3149-3167
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570721
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570721
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3149-3167




Template-Type: ReDIF-Article 1.0
Author-Name: Jaba Ghonghadze
Author-X-Name-First: Jaba
Author-X-Name-Last: Ghonghadze
Author-Name: Thomas Lux
Author-X-Name-First: Thomas
Author-X-Name-Last: Lux
Title: Modelling the dynamics of EU economic sentiment indicators: an interaction-based approach
Abstract: 
 This article estimates a simple univariate model of expectation or opinion formation in continuous time adapting a ‘canonical’ stochastic model of collective opinion dynamics (Weidlich and Haag, 1983; Lux, 1995, 2009a). This framework is applied to a selected data set on survey-based expectations from the rich EU business and consumer survey database for 12 European countries. The model parameters are estimated through Maximum Likelihood (ML) and numerical solution of the transient probability density functions for the resulting stochastic process. The model's success is assessed with respect to its out-of-sample forecasting performance relative to univariate Time Series (TS) models of the Autoregressive Moving Average model, ARMA(p, q) and Autoregressive Fractionally Integrated Moving Average, ARFIMA(p, d, q) varieties. These tests speak for a slight superiority of the canonical opinion dynamics model over the alternatives in the majority of cases.
Journal: Applied Economics
Pages: 3065-3088
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570716
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570716
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3065-3088




Template-Type: ReDIF-Article 1.0
Author-Name: Avi Herbon
Author-X-Name-First: Avi
Author-X-Name-Last: Herbon
Author-Name: Uriel Spiegel
Author-X-Name-First: Uriel
Author-X-Name-Last: Spiegel
Author-Name: Joseph Templeman
Author-X-Name-First: Joseph
Author-X-Name-Last: Templeman
Title: Simulation study of the price differentiation effect in a stochastic deteriorating inventory with heterogeneous consumers – freshness sensitivity
Abstract: 
 A fixed price policy regardless of expiration date may result in unsold inventory and sales loss. Price reduction over time as the expiration date approaches motivates customers to purchase all items, including the ones that are left with only a short interval until their expiration. We conduct a discrete event simulation that captures the main characteristics of this phenomenon. Results show that a moderate differentiation of price increases profits by 6%, a larger differentiation reduces profits. Profits are the highest for freshness-oriented customers. A fixed price policy is preferred in an environment of large variance and expected near term expirations.
Journal: Applied Economics
Pages: 3101-3119
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570718
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570718
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3101-3119




Template-Type: ReDIF-Article 1.0
Author-Name: Jenifer Piesse
Author-X-Name-First: Jenifer
Author-X-Name-Last: Piesse
Author-Name: Bruce Allen Hearn
Author-X-Name-First: Bruce Allen
Author-X-Name-Last: Hearn
Title: The law of one price: an examination of price integration between Europe and regional markets in Africa
Abstract: 
 This study examines the degree of price-integration of equity indices between the major markets of Africa, namely Morocco, Tunisia, Egypt, Kenya, Nigeria, Namibia and South Africa with the European markets of London and Paris. Vector Autoregressive and Autoregressive Distributed Lag methods reveal that African markets are largely price-segmented. The only markets that are price-integrated have shared economic and financial institutions, such as Namibia and South Africa, and Egypt, Tunisia and France. The evidence suggests that development policy should be focussed on enhancing existing institutions rather than embarking prematurely on regional integration.
Journal: Applied Economics
Pages: 3169-3193
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570722
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570722
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3169-3193




Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Feng Lee
Author-X-Name-First: Cheng-Feng
Author-X-Name-Last: Lee
Author-Name: Ching-Chuan Tsong
Author-X-Name-First: Ching-Chuan
Author-X-Name-Last: Tsong
Title: A revisit on real interest rate parity hypothesis – simulation evidence from efficient unit root tests
Abstract: 
 A set of unit root tests are applied to test the existence of long-run real interest rate parity among the G-10 countries over the period 1971M1 to 2007M2. Rather than trusting the asymptotic distributions, this article uses simulation techniques to establish the small sample distributions of these tests, conditional on the stationary and nonstationary processes. The empirical results indicate that the tests have stable finite-sample sizes and higher size-adjusted powers such that the two estimated processes can be distinguished from each other. Thus, for six of the nine countries, their series are more likely to come from the estimated Autoregressive (AR) stationary process than from the nonstationary process. Noticeably, the testing results are rather different from those using the asymptotic distributions, in which only three countries support the real interest rate parity.
Journal: Applied Economics
Pages: 3089-3099
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570717
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570717
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3089-3099




Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore Capasso
Author-X-Name-First: Salvatore
Author-X-Name-Last: Capasso
Author-Name: Oreste Napolitano
Author-X-Name-First: Oreste
Author-X-Name-Last: Napolitano
Title: Testing for the stability of money demand in Italy: has the Euro influenced the monetary transmission mechanism?
Abstract: 
 Stability of money demand is a crucial issue for the efficacy of monetary policy. This is particularly true in the presence of significant exogenous shocks to the monetary system. By implementing the most recent econometric testing procedures, this article intends to investigate the consistency of the stability of money demand in Italy, one of the larger European Monetary Union (EMU) countries, before and after the EMU. Among others, the objective is, indeed, to ascertain the effect of a change in the currency regime on the monetary aggregates and to provide a valid empirical model which is a viable tool for policy performance.
Journal: Applied Economics
Pages: 3121-3133
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570719
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570719
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3121-3133




Template-Type: ReDIF-Article 1.0
Author-Name: Bahar Bayraktar Saglam
Author-X-Name-First: Bahar Bayraktar
Author-X-Name-Last: Saglam
Author-Name: Burak Gunalp
Author-X-Name-First: Burak
Author-X-Name-Last: Gunalp
Title: The Beveridge curve and labour market dynamics in Turkey
Abstract: 
 This article investigates the dynamics of unemployment and vacancy rates in Turkey during the period 1951 to 2008 by means of a Beveridge Curve (BC). The time-series analysis of unemployment and vacancies as well as two other relevant labour market variables, real wages and real labour productivity, strongly suggests inefficiency in the Turkish labour market. A stable long-run relationship between unemployment rate and vacancy rate is found for Turkey, that is, the existence of a negatively sloped BC is verified. The estimated Turkish BC reflects the structural problems and lack of flexibility in the labour market. The modified BC with real wages and labour productivity reveals that labour productivity has no significant effect on unemployment rate whereas wages have positive and significant effects on the same variable.
Journal: Applied Economics
Pages: 3195-3202
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570725
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570725
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3195-3202




Template-Type: ReDIF-Article 1.0
Author-Name: Víctor M. González
Author-X-Name-First: Víctor M.
Author-X-Name-Last: González
Author-Name: Francisco González
Author-X-Name-First: Francisco
Author-X-Name-Last: González
Title: Firm size and capital structure: evidence using dynamic panel data
Abstract: 
 This article suggests that the validity of the Trade-Off Theory (TOT) and Pecking-Order Theory (POT) to explain financing decisions varies among small, medium-sized and large firms. Using dynamic panel data tests on a sample of 3439 Spanish firms over the period 1995–2003, results are partially consistent with both explanations but suggest a greater validity of pecking-order predictions for small firms. In small firms, the negative influence of profitability and the positive influence of investment opportunities and of intangible assets on firm debt predicted by the POT are heightened. However, no differences are observed between small and large firms in their speed of adjustment to the target leverage as suggested by the TOT.
Journal: Applied Economics
Pages: 4745-4754
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.595690
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595690
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4745-4754




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Cowie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Cowie
Title: Contestability in bus markets – evidence from the British de-regulated market
Abstract: 
 Following the 1985 Transport Act in Great Britain, reforms in the provision of bus services continue across Europe and other parts of the world to this day. The British experience, however, remains a key point of study in informing these continuing developments. This article looks at the issue of contestability in bus markets, and tests for the existence of the contestable market in Britain through an examination of fare levels, profit margins and technical efficiencies in 90 identifiable bus markets. The main conclusion is that there is evidence of the contestable market in Britain, however it can hardly be described as widespread, only found to be present in 15 of the 90 markets identified in the sample. The real issue however, particularly with regard to continuing reforms elsewhere in Europe, is the ability of regulatory authorities to maintain competitive and contestable (free) markets and the research suggests that in the face of market forces this is simply not possible. The only conclusion therefore is that contestability in the free market is not sustainable, and thus can only be introduced directly through franchising.
Journal: Applied Economics
Pages: 4777-4785
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.564146
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564146
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4777-4785




Template-Type: ReDIF-Article 1.0
Author-Name: Feng-Yuan Moh
Author-X-Name-First: Feng-Yuan
Author-X-Name-Last: Moh
Author-Name: Hsi-Peng Lu
Author-X-Name-First: Hsi-Peng
Author-X-Name-Last: Lu
Author-Name: Bing-Huei Lin
Author-X-Name-First: Bing-Huei
Author-X-Name-Last: Lin
Title: Contributions to financial crisis research: an assessment of the literature in Social Science Citation Index journals from 1990 to 2008
Abstract: 
 Research in the field of financial crisis has generated a considerable amount of literature in the past, yet there has neither been any study to assess the contributions to the literature made by individuals or institutions, nor any to measure the impact of the articles and researchers. This study represents an attempt to: (1) investigate the major journals in publishing financial crisis research, (2) assess the contributions of individual researchers and institutions using the credited contribution approach and (3) measure the impact of individual publications and individual researchers on the financial crisis literature through citation analysis, based on the publications in Social Science Citation Index (SSCI) journals from 1990 to 2008. The findings provide a useful benchmark for assessing individual and institutional research productivity, and trends for future research and venues for publications are identified.
Journal: Applied Economics
Pages: 4689-4700
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2010.528370
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4689-4700




Template-Type: ReDIF-Article 1.0
Author-Name: D. Maltritz
Author-X-Name-First: D.
Author-X-Name-Last: Maltritz
Author-Name: A. Bühn
Author-X-Name-First: A.
Author-X-Name-Last: Bühn
Author-Name: S. Eichler
Author-X-Name-First: S.
Author-X-Name-Last: Eichler
Title: Modelling country default risk as a latent variable: a multiple indicators multiple causes approach
Abstract: 
 We study the determinants of country default risk by applying a Multiple Indicators Multiple Causes (MIMIC) model. This accounts for the fact that country default risk is an unobservable variable. Whereas existing (regression-based) approaches typically use only one of several possible country default risk indicators as the dependent variable, the MIMIC model enables us to consider several indicators at once. The simultaneous consideration of sovereign yield spreads and Standard and Poor (S&P) ratings may help to improve the identification of the latent country default risk. Our results confirm most of the literature's main findings regarding important determinants of country default risk, refute others and provide new evidence to controversial questions.
Journal: Applied Economics
Pages: 4679-4688
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2010.528369
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528369
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4679-4688




Template-Type: ReDIF-Article 1.0
Author-Name: Gaurav Nayyar
Author-X-Name-First: Gaurav
Author-X-Name-Last: Nayyar
Title: The quality of employment in India's services sector: exploring the heterogeneity
Abstract: 
 For some observers, the dramatic growth of the services sector in India reflects rapid strides made by educated professionals. Some others see it as the expansion of an employer of last resort. Given this heterogeneity, the object of this article is to analyse the quality of employment being created in different sub-sectors of services, relative to the industrial sector, where quality is defined to include wages, job security and social protection. Analysing household survey data from India in 1993–94 and 2004–05, we find the following. First, sub-sectors of services are generally either 'good' or 'bad' employers – higher wages do not compensate for less job security or less job protection. Second, the classification of most service sub-sectors as 'good' or 'bad' employers in 2004–05 is the same as that in 1993–94. Third, employment expansion during the 10-year period under consideration is more in service sub-sectors where quality of employment is low.
Journal: Applied Economics
Pages: 4701-4719
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.589816
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589816
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4701-4719




Template-Type: ReDIF-Article 1.0
Author-Name: R. Kumazawa
Author-X-Name-First: R.
Author-X-Name-Last: Kumazawa
Author-Name: P. Gomis-Porqueras
Author-X-Name-First: P.
Author-X-Name-Last: Gomis-Porqueras
Title: An empirical analysis of patents flows and R&D flows around the world
Abstract: 
 In this article, we empirically investigate the effect of Research and Development (R&D) flows on patent flows around the world. We do this using an unbalanced panel consisting primarily of Organization for Economic Co-operation and Development (OECD) countries that have both patent and R&D expenditure information broken down by domestic and foreign sources. Our analysis shows that even among a fairly homogeneous group of countries, the sources of patents and R&D differ substantially. Using a dynamic panel framework, we find that domestic R&D per capita increases domestic patents per capita only for the European Patent Convention (EPC) countries that already have a decentralized approach to innovation. Foreign R&D per capita increases foreign patents per capita in all countries even though foreign R&D constitutes a very small fraction of total R&D. We find that some of these differences can be attributed to the locations of the patent applications, including those to the European Patent Office (EPO), United States Patent and Trademark Office (USPTO) and triadic patent applications to the EPO, USPTO and Japan Patent Office (JPO) simultaneously.
Journal: Applied Economics
Pages: 4755-4763
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2010.528375
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528375
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4755-4763




Template-Type: ReDIF-Article 1.0
Author-Name: Christos Agiakloglou
Author-X-Name-First: Christos
Author-X-Name-Last: Agiakloglou
Author-Name: Apostolos Tsimpanos
Author-X-Name-First: Apostolos
Author-X-Name-Last: Tsimpanos
Title: An alternative approach for testing for linear association for two independent stationary AR(1) processes
Abstract: 
 Spurious correlations occur when two independent time series are found to be correlated according to the typical statistical procedure for testing the null hypothesis of zero correlation in the population. Using a Monte Carlo analysis, this study examines the spurious correlation phenomenon for two independent stationary AR(1) processes and it finds that if an alternative testing procedure is applied, spurious behaviour is eliminated using the variance of the sample correlation coefficient of these two series, suggested by Bartlett (1935).
Journal: Applied Economics
Pages: 4799-4803
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.595695
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595695
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4799-4803




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Pedace
Author-X-Name-First: Roberto
Author-X-Name-Last: Pedace
Author-Name: Christine DuBois
Author-X-Name-First: Christine
Author-X-Name-Last: DuBois
Title: Immigration policy and employment assimilation in the United States
Abstract: 
 We examine the impact of immigration policy on the employment propensity and assimilation of immigrants using a pooled cross-section of the 1994–2004 Current Population Surveys (CPS). The results are generally consistent with positive immigrant employment assimilation. A Blinder–Oaxaca style decomposition shows that the foreign-born obtain more employment primarily through human capital acquisition and changes in labour market conditions rather than higher returns to observable skills, as sometimes seen in wage studies. In addition, our analysis suggests that immigration policies may influence both labour demand and supply incentives and are associated with structural shifts in the labour market.
Journal: Applied Economics
Pages: 4721-4730
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.589817
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589817
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4721-4730




Template-Type: ReDIF-Article 1.0
Author-Name: Loreto Lira
Author-X-Name-First: Loreto
Author-X-Name-Last: Lira
Author-Name: Magdalena Ugarte
Author-X-Name-First: Magdalena
Author-X-Name-Last: Ugarte
Author-Name: Rodrigo Vergara
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Vergara
Title: Prices and market structure: an empirical analysis of the supermarket industry in Chile
Abstract: 
 This article investigates empirically the relationship between market structure and consumer prices in the supermarket industry in Chile. A panel of monthly data from 16 cities in the period January 1998–September 2006 is used. We find that, the more concentrated the industry in a city, the higher the prices, while the participation of major national chains in cities tends to lower prices. In terms of magnitude, this latter effect prevails over the former. Moreover, the dominant local chain is found to behave differently depending on whether or not one of the national chains is present in the city. Finally, we find that prices rise when a national chain acquires another chain and both were previously in a city (inmerge) while if only one of the two was present (outmerge), prices fall.
Journal: Applied Economics
Pages: 4731-4744
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.595689
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595689
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4731-4744




Template-Type: ReDIF-Article 1.0
Author-Name: M. Hakan Berument
Author-X-Name-First: M. Hakan
Author-X-Name-Last: Berument
Author-Name: Zulal Denaux
Author-X-Name-First: Zulal
Author-X-Name-Last: Denaux
Author-Name: Yeliz Yalcin
Author-X-Name-First: Yeliz
Author-X-Name-Last: Yalcin
Title: Turkish monetary policy and components of aggregate demand: a VAR analysis with sign restrictions model
Abstract: 
 This article estimates the effects of monetary policy on components of aggregate demand using quarterly data on Turkish economy from 1987–2008 by means of structural Vector Autoregression (VAR) methodology. This study adopts Uhlig's (2005) sign restrictions on the impulse responses of main macroeconomic variables to identify monetary shock. This study finds that expansionary monetary policy stimulates output through consumption and investment in the short-run. However, expansionary monetary policy is ineffective in the long-run.
Journal: Applied Economics
Pages: 4787-4798
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.564151
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564151
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4787-4798




Template-Type: ReDIF-Article 1.0
Author-Name: Pedro de Faria
Author-X-Name-First: Pedro
Author-X-Name-Last: de Faria
Author-Name: Francisco Lima
Author-X-Name-First: Francisco
Author-X-Name-Last: Lima
Title: Interdependence and spillovers: is firm performance affected by others’ innovation activities?
Abstract: 
 The creation of new knowledge is a case in which agents' behaviour can affect the performance of other actors positively, given that new knowledge creates positive externalities in the market. In this context, we investigate the existence of performance spillovers associated with innovation activities by quantifying the innovation produced in surrounding firms and controlling for the fact that a firm is itself an innovation producer. We use data from the Third Community Innovation Survey (CIS III) that measures innovation in a broad way, not reducing it to R&D and patents, which departs from previous literature on spillovers. Furthermore, to tackle the endogeneity of the innovation variables on the firm production decision, we resort to the firm intellectual property protection methods as an instrument. We found a positive spillover of innovation on firm value added. The results also show that process innovation spillovers are more prevalent than product innovation spillovers.
Journal: Applied Economics
Pages: 4765-4775
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.560108
File-URL: http://hdl.handle.net/10.1080/00036846.2011.560108
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4765-4775




Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Martínez-Zarzoso
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Martínez-Zarzoso
Title: The log of gravity revisited
Abstract: 
 This article evaluates the performance of alternative estimation methods for gravity models with heteroscedasticity and zero trade values. Both problematic issues, recently addressed by Santos Silva and Tenreyro in an influential paper, are re-examined here. We use Monte Carlo simulations to compare the Pseudo Poisson Maximum Likelihood (PPML) estimator recommended by Santos Silva and Tenreyro, a Gamma Pseudo-Maximum-Likelihood (GPML), a Nonlinear Least Squares (NLS) estimator and a Feasible Generalized Least Squares (FGLS) estimator with more traditional techniques. Additionally, estimates of the gravity equation are obtained for three different data sets with the abovementioned methods. The results of the simulation study indicate that, although the PPML estimator is less affected by heteroscedasticity than others are, its performance is similar, in terms of bias and SEs, to the FGLS estimator performance, in particular for small samples. GPML presents however the lowest bias and SEs in the simulations without zero values. The results of the empirical estimations, using three different samples containing real data, indicate that the choice of estimator has to be made for each specific dataset. It is highly recommended to follow a model selection approach using a number of tests to select the more appropriate estimator for any application.
Journal: Applied Economics
Pages: 311-327
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.599786
File-URL: http://hdl.handle.net/10.1080/00036846.2011.599786
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:311-327




Template-Type: ReDIF-Article 1.0
Author-Name: Alexis Direr
Author-X-Name-First: Alexis
Author-X-Name-Last: Direr
Title: Are betting markets efficient? Evidence from European Football Championships
Abstract: 
 This article investigates the degree of efficiency of the European Football online betting market by using odds quoted by 12 bookmakers on 21 European championships over 11 years. We show that systematically picking out odds inferior to a threshold delivers a rate of return of 4.45% if best odds are selected across bookmakers and 2.78% if mean odds are used. This amounts to backing overwhelmingly favourites whose probability of winning exceeds 90%. Our results only exploit information contained in odds, are robust to the use of real-time data and different sample periods and hold under risk neutrality and expected utility preferences for realistic degrees of risk aversion. Transaction costs reduce profitability but only for small stake bets.
Journal: Applied Economics
Pages: 343-356
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.602010
File-URL: http://hdl.handle.net/10.1080/00036846.2011.602010
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:343-356




Template-Type: ReDIF-Article 1.0
Author-Name:  Suyanto
Author-X-Name-First: 
Author-X-Name-Last: Suyanto
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence
Abstract: 
 The spillovers of Foreign Direct Investment (FDI) on domestic firms’ performances have been highly debated for many years. This article contributes to this debate by analysing spillovers effects on technical efficiency of Indonesian pharmaceutical sector using a unique unbalanced panel of highly disaggregated (at five-digit International Standard Industrial Classification (ISIC)) 210 firms over the period 1990–1995 (1001 observations). The Stochastic Production Frontier (SPF) and the Data Envelopment Analysis (DEA) based on Malmquist Productivity Indices (MPI) have been used to test the spillovers effects of FDI on technical efficiency. The empirical results from the SPF show that foreign firms are more efficient than domestic competitors, and the presence of the former increases the inefficiency of the latter. Similarly the results from the MPI demonstrate that FDI has a negative and significant impact on technical efficiency changes in domestic competitors, but generate positive spillovers to domestic suppliers.
Journal: Applied Economics
Pages: 383-395
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605554
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605554
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:383-395




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund
Author-X-Name-First: Christian
Author-X-Name-Last: Grund
Author-Name: Andreas Schmitt
Author-X-Name-First: Andreas
Author-X-Name-Last: Schmitt
Title: Works councils, wages and job satisfaction
Abstract: 
 We investigate the effects of works councils on employees' wages and job satisfaction in general and for subgroups with respect to sex and occupational status. Making use of a German representative sample of employees, we find that employees, who move to a firm with a works council, report increases in job satisfaction, but do not receive particular wage increases. Especially the job satisfaction of female employees is affected by a change in works council status. However, we do not find support for the hypothesis that the introduction of a works council itself increases wages or job satisfaction for the employees staying at the firm.
Journal: Applied Economics
Pages: 299-310
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597735
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597735
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:299-310




Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Klomp
Author-X-Name-First: Jeroen
Author-X-Name-Last: Klomp
Author-Name: Jakob De Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: De Haan
Title: Do political budget cycles really exist?
Abstract: 
 Most recent cross-country studies on election-motivated fiscal policy assume that the data can be pooled. As various tests suggest that our data for some 70 democratic countries for the period 1970–2007 cannot be pooled, we use the Pooled Mean Group (PMG) estimator to test whether Political Budget Cycles (PBCs) exist in our sample. We find that fiscal policy is only affected by upcoming elections in the short run. Our results suggest that the occurrence of a PBC is conditional on the level of development and democracy, government transparency, the country's political system, its membership of a monetary union and its degree of political polarization.
Journal: Applied Economics
Pages: 329-341
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.599787
File-URL: http://hdl.handle.net/10.1080/00036846.2011.599787
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:329-341




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph M. Santos
Author-X-Name-First: Joseph M.
Author-X-Name-Last: Santos
Title: Trading grain now and then: the relative performance of early grain-futures markets
Abstract: 
 Popular hostilities toward futures trading in the United States date to the nineteenth century, when many Americans perceived then-nascent grain exchanges as little more than gaming parlours that existed to serve the illegitimate aspirations of gamblers–a depiction that, if anything, compromises the legitimacy of modern futures exchanges. Yet, agricultural historians have largely praised the performance of these early markets, which they contend were shaped by commercial interests who sought successfully to mitigate price risk. In any case, our understanding of how early futures markets performed is fragmented, and so such claims remain largely unsubstantiated in a quantifiable sense. Even so, futures-price data are available for the late-nineteenth century, thanks to the Chicago Board of Trade (CBT), which pioneered grain-futures trading in the 1860s. In this article, I test and compare the performance of wheat, corn, and oats futures prices on the CBT from 1880 to 1890 and from 1997 to 2007. My results indicate that grain-futures markets in both periods are efficient in the long run. Short-run performance is mixed, and inefficiency is more evident in the nineteenth century. On balance, my results support the notion that early grain-futures exchanges benefited commercial interests and the grain trade more generally.
Journal: Applied Economics
Pages: 287-298
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597732
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597732
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:287-298




Template-Type: ReDIF-Article 1.0
Author-Name: Peter H. van der Meer
Author-X-Name-First: Peter H.
Author-X-Name-Last: van der Meer
Author-Name: Rudi Wielers
Author-X-Name-First: Rudi
Author-X-Name-Last: Wielers
Title: What makes workers happy?
Abstract: 
 This article answers the question what makes workers happy? It does so by combining insights from micro-economics, sociology and psychology. Basis is the standard utility function of a worker that includes income and hours of work and is elaborated with job characteristics. In this way it is possible to answer whether part-time workers are happier than full-time workers. The utility function is estimated on basis of the European Social Survey 2004 which contains all necessary information. The results show that workers optimize income and hours of work as predicted by micro-economics, but also that part-time workers are happier than full-time workers. Challenging work with a high level of autonomy makes the workers happy, work pressure makes workers unhappy. Higher educated workers are unhappier than lower educated workers, we find a negative effect of education, but this is compensated by the type of jobs these higher educated hold.
Journal: Applied Economics
Pages: 357-368
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.602011
File-URL: http://hdl.handle.net/10.1080/00036846.2011.602011
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:357-368




Template-Type: ReDIF-Article 1.0
Author-Name: Travis Ng
Author-X-Name-First: Travis
Author-X-Name-Last: Ng
Author-Name: Terence Tai-Leung Chong
Author-X-Name-First: Terence Tai-Leung
Author-X-Name-Last: Chong
Author-Name: Man-Tat Siu
Author-X-Name-First: Man-Tat
Author-X-Name-Last: Siu
Author-Name: Benjamin Everard
Author-X-Name-First: Benjamin
Author-X-Name-Last: Everard
Title: What determines the price of a racing horse?
Abstract: 
 This article uses the data of 10 auctions from the two largest Australian auction houses to study how a racing horse is priced. We ask whether bloodline is indeed a determining factor. We find that the track record of its parents and siblings are important factors in determining the price of a yearling. Moreover, more mature horses and those purchased by foreign buyers are generally more expensive. We also show that racing horses sold in the flagship auctions are associated with a significant premium.
Journal: Applied Economics
Pages: 369-382
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605553
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605553
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:369-382




Template-Type: ReDIF-Article 1.0
Author-Name: Daehwan Kim
Author-X-Name-First: Daehwan
Author-X-Name-Last: Kim
Author-Name: Jung Inn Kim
Author-X-Name-First: Jung Inn
Author-X-Name-Last: Kim
Author-Name: Taeyoon Sung
Author-X-Name-First: Taeyoon
Author-X-Name-Last: Sung
Title: Stock market liberalization and price response: gradualism versus cold turkey
Abstract: 
 We present a simple analytical framework that illustrates the impact of two types of market liberalization on stock prices: cold turkey versus gradual liberalization. Using this theoretical framework, we show that gradual stock market liberalization can have a negative impact on stock prices when such gradual liberalization increases uncertainty about future stock prices. We examine the liberalization experience of the Korean stock market, and find that our analysis could be relevant in that case.
Journal: Applied Economics
Pages: 273-285
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597731
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597731
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:273-285




Template-Type: ReDIF-Article 1.0
Author-Name: Jan Erik Askildsen
Author-X-Name-First: Jan Erik
Author-X-Name-Last: Askildsen
Author-Name: Tor Helge Holmås
Author-X-Name-First: Tor Helge
Author-X-Name-Last: Holmås
Title: Wages and work conditions as determinants for physicians' work decisions
Abstract: 
 It is not uncommon that publicly employed physicians also have income from work outside the hospital, sometimes termed moonlighting. There is little empirical evidence of such activity. In this article, we investigate which factors that may influence physicians' choice of work between the public hospital sector and elsewhere. An exceptionally high wage increase in 1996 for one group of hospital physicians (physician assistants) serves as a natural experiment, and we analyse whether wages in general and this reform in particular have affected physicians' external earnings. For physician assistants we find that higher wages at public hospitals affect negatively both the decisions to earn income externally, and level of income once active. For chief physicians, on the other hand, there was no such response to the wage increase. Several hospital specific factors representing job specific work characteristics also matter for physicians' decisions to earn income externally.
Journal: Applied Economics
Pages: 397-406
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605756
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605756
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:397-406




Template-Type: ReDIF-Article 1.0
Author-Name: Yize Xie
Author-X-Name-First: Yize
Author-X-Name-Last: Xie
Author-Name: Junyi Zhang
Author-X-Name-First: Junyi
Author-X-Name-Last: Zhang
Author-Name: Zhusong Yang
Author-X-Name-First: Zhusong
Author-X-Name-Last: Yang
Title: Globalization, state capacity and the third wave of democratization: an empirical study
Abstract: 
 Instead of looking at the relationship between globalization and democratization from a social and institutional perspective, this article focuses on the moderating role of state capacities, which are divided into two sub-categories: state coercive capacity and state administrative capacity. Using panel data from 129 countries for 1974–2018, we arrive at two conclusions. First, globalization is positively correlated with democratization, but this relationship weakens with stronger state administrative capacity. Second, while state coercive capacity has an inverse relationship with democratization, state administrative capacity is positively associated with democratization, and this positive effect wanes with greater degrees of globalization.
Journal: Applied Economics
Pages: 3377-3390
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1878094
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1878094
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3377-3390




Template-Type: ReDIF-Article 1.0
Author-Name: Kyungsub Lee
Author-X-Name-First: Kyungsub
Author-X-Name-Last: Lee
Author-Name: Byoung Ki Seo
Author-X-Name-First: Byoung Ki
Author-X-Name-Last: Seo
Title: Analytic formula for option margin with liquidity costs under dynamic delta hedging
Abstract: 
 This study derives the expected liquidity cost when performing the delta hedging process of a European option. This cost is represented by an integration formula that includes European option prices and a certain function depending on the delta process. We first define a unit liquidity cost and then show that the liquidity cost is a multiplication of the unit liquidity cost, stock price, supply curve parameter, and the square of the number of options. Using this formula, the expected liquidity cost before hedging can be calculated much faster than when using a Monte Carlo simulation. Numerically computed distributions of liquidity costs in special cases are also provided.
Journal: Applied Economics
Pages: 3391-3407
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1881430
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1881430
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3391-3407




Template-Type: ReDIF-Article 1.0
Author-Name: Isaac Koomson
Author-X-Name-First: Isaac
Author-X-Name-Last: Koomson
Author-Name: Renato Andrin Villano
Author-X-Name-First: Renato Andrin
Author-X-Name-Last: Villano
Author-Name: David Hadley
Author-X-Name-First: David
Author-X-Name-Last: Hadley
Title: Accelerating the impact of financial literacy training programmes on household consumption by empowering women
Abstract: 
 This study examines the impact of a joint financial literacy and women’s empowerment training programme on household consumption as a welfare indicator. Using data collected from a randomized controlled trial implemented in Ghana, we tested for baseline balance and applied ordinary least squares to estimate endline impact. Our findings revealed that the impact of financial literacy on household consumption is influenced by the design and delivery of the programme. A weaker impact is achieved when financial literacy training is offered alone. The ensuing stronger short-term impact of financial literacy training on household consumption is achieved through the inclusion of a women’s empowerment module. The joint delivery of the programme significantly improved household consumption for female-beneficiary and younger households. We advocate the inclusion of women’s empowerment training in financial literacy training programmes to accelerate its impact on household welfare through increased household consumption
Journal: Applied Economics
Pages: 3359-3376
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1878093
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1878093
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3359-3376




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Rosenbaum
Author-X-Name-First: Philip
Author-X-Name-Last: Rosenbaum
Title: Pregnancy or motherhood cost? A comparison of the child penalty for adopting and biological parents
Abstract: 
 This study investigates whether the high labour market costs of having children for women can be explained by the associated biological costs. Estimating the significance of biological factors requires separating the effects of having a child from the effects of giving birth to a child. This separation is estimated by comparing child penalties between biological and adopting families. Adopting mothers neither go through pregnancy nor nursing, thus lessening the burden of the sex-specific costs of having children. I apply an event study by following parents over 16 years and find large and significant child penalties for all mothers although the penalties are slightly smaller for adopting mothers than those for biological mothers. Neither adopting nor biological fathers experience any child penalties. The results suggest that child penalties have some biological components, but the burden is on women regardless of whether they carry the biological costs related to pregnancy.
Journal: Applied Economics
Pages: 3408-3422
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1881431
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1881431
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3408-3422




Template-Type: ReDIF-Article 1.0
Author-Name: Yong Xu
Author-X-Name-First: Yong
Author-X-Name-Last: Xu
Author-Name: Xin Zhao
Author-X-Name-First: Xin
Author-X-Name-Last: Zhao
Author-Name: Xiaoxiao Zhou
Author-X-Name-First: Xiaoxiao
Author-X-Name-Last: Zhou
Author-Name: Ling Yuan
Author-X-Name-First: Ling
Author-X-Name-Last: Yuan
Title: Financial Structure and Capital Allocation Efficiency: An Empirical Analysis of China from 2005–2018
Abstract: 
 In this study, we explore the relationship between financial structure and the efficiency of capital allocation to determine a scientific and effective approach to transform and upgrade China’s financial sector. Using China’s provincial data from 2005 to 2018, we detected the threshold effect of financial structure on capital allocation efficiency. We found that financial structure, when using its three agency indicators (credit scale, insurance scale, and stock market size) as threshold variables, and capital allocation efficiency show an inverted ‘U’ relationship. Moreover, the relationship between financial efficiency, insurance scale, and capital allocation efficiency changes from negative to positive, and the relationship between foreign trade scale and capital allocation efficiency shows a significant negative correlation. This research improves the understanding of the relationship between China’s financial structure and the efficiency of capital allocation. Our results show that by optimizing the financial structure through expanding the stock market and the scale of bank credit and appropriately expanding the scale of insurance, more loanable funds will flow into the production sector, and providing certain guarantees can greatly promote improved capital allocation efficiency.
Journal: Applied Economics
Pages: 3347-3358
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877256
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877256
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3347-3358




Template-Type: ReDIF-Article 1.0
Author-Name: Yan Song
Author-X-Name-First: Yan
Author-X-Name-Last: Song
Title: Noncognitive skills and gender gap in test scores
Abstract: 
 This article studies gender gap patterns in language and math during primary school periods in China, and investigates candidate theories to explain the observed patterns. Using an administrative test dataset, we find that girls on average outperform boys in language and have advantage in math in primary school. The gaps for language in all quantiles widen consistently over time. Female’s advantages in math in most quantiles, except the lowest, shrink over time. Using a survey on students in primary schools, we find that noncognitive skills can effectively reduce the gender gap in both Chinese and math. This effect is most pronounced for students in the bottom quantile group.
Journal: Applied Economics
Pages: 3423-3437
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883189
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883189
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3423-3437




Template-Type: ReDIF-Article 1.0
Author-Name: Eun Kang
Author-X-Name-First: Eun
Author-X-Name-Last: Kang
Author-Name: Ryumi Kim
Author-X-Name-First: Ryumi
Author-X-Name-Last: Kim
Title: Product market competition, reputation, and dividend policy
Abstract: 
 This paper examines the effect of product market competition on the dividend policy of firms. Previous studies report different relationships between product market competition and dividend payout policies. This paper aims to clarify the relationship between product market competition and dividend payout policies by dividing dividend-paying firms into two groups, high dividend firms and low dividend firms, based on the level of dividends. We hypothesize that when the product market is more competitive, high dividend firms pay more dividends, but low dividend firms pay less dividends. According to our test using all firms listed on the NYSE, AMEX, and NASDAQ stock exchanges from the CRSP, the results support our hypothesis. This paper also emphasizes the importance of the dividend reputation in the analysis of dividend-related matters. Firms with dividend reputation pay higher dividends than firms with no reputation.
Journal: Applied Economics
Pages: 3334-3346
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877255
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877255
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3334-3346




Template-Type: ReDIF-Article 1.0
Author-Name: Chengyuan Wang
Author-X-Name-First: Chengyuan
Author-X-Name-Last: Wang
Author-Name: Qiong Wang
Author-X-Name-First: Qiong
Author-X-Name-Last: Wang
Author-Name: Shanshan Zheng
Author-X-Name-First: Shanshan
Author-X-Name-Last: Zheng
Author-Name: Liang Wan
Author-X-Name-First: Liang
Author-X-Name-Last: Wan
Author-Name: Jun Li
Author-X-Name-First: Jun
Author-X-Name-Last: Li
Author-Name: Jia’Ning Zang
Author-X-Name-First: Jia’Ning
Author-X-Name-Last: Zang
Title: Peer effects of bank loan portfolio on systemic insolvency risk: evidence from China
Abstract: 
 By empirically analysing the panel data of Chinese commercial banks, we find that regional city commercial banks significantly mimic their peers in multiple lending parts of loan portfolio, while large nationwide commercial banks behave oppositely to their peers. In addition, by using a Euclidean distance way to measure bank interconnectedness, we reveal that the overlap of loan portfolios between banks is significantly correlated to the similarity of insolvency risk between them. It implies that peer effects of bank loan portfolio are likely to be sources of systemic insolvency risk in the bank system. These results help deepen the understanding of peer effects of bank activities, and provide insights into the correlation between peer effects and systemic risk in banks.
Journal: Applied Economics
Pages: 3457-3473
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883527
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883527
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3457-3473




Template-Type: ReDIF-Article 1.0
Author-Name: Jing Li
Author-X-Name-First: Jing
Author-X-Name-Last: Li
Author-Name: Sarina Sangal
Author-X-Name-First: Sarina
Author-X-Name-Last: Sangal
Author-Name: Ling Shao
Author-X-Name-First: Ling
Author-X-Name-Last: Shao
Title: Assessing economic impact of sovereignty transfer over Hong Kong: a synthetic control approach
Abstract: 
 This article compares the trajectory of Hong Kong’s purchasing power parity–adjusted GDP per capita before and after the 1997 handover with the trajectory of a weighted combination of similar economies, using weights determined endogenously by data. The synthetic Hong Kong is constructed to provide the counterfactual of what would have happened to Hong Kong economy in the absence of transfer of sovereignty. We find that Hong Kong economy is negatively affected, and the gap between actual and synthetic Hong Kong from 1997 to 2001 on average is 7% of the 1996 level if Japan receives the greatest weight. The average negative effect becomes 9% if Singapore receives the greatest weight.
Journal: Applied Economics
Pages: 3499-3514
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883529
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883529
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3499-3514




Template-Type: ReDIF-Article 1.0
Author-Name: Adrian R. Fleissig
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Fleissig
Title: Estimating elasticities of substitution for sin goods
Abstract: 
 Own-price and cross-price elasticities of substitution are estimated for the six ‘sin’ goods of spirits, beer, wine, casino gambling and lotteries using aggregate U.S. quarterly national data. The own-price and cross-price elasticities of substitution are not constrained to be constant over the sample and are estimated using the Fourier flexible form. There is evidence of much variation in substitution over the sample, including during the recessions. All ‘sin’ goods, except lotteries, have inelastic demands. Beer and tobacco have the most inelastic demands which are consistent with the evidence that beer is the most popular type of spirit while tobacco products are often considered addictive commodities. The three types of alcohol of spirits, beer, and wine are Morishima cross-price substitutes. Casino gambling and lotteries are Morishima cross-price substitutes having an elastic response to price changes in casino gambling but have and inelastic response for price changes of lotteries. Estimates show that the remaining ‘sin’ goods are complements in use. Policy makers must consider how a tax on a ‘sin’ good will impact demand for the good partially based on its own-price elasticity of demand as well as the cross-price elasticity of substitution or complementarity relationships with other ‘sin’ goods.
Journal: Applied Economics
Pages: 3549-3561
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883539
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883539
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3549-3561




Template-Type: ReDIF-Article 1.0
Author-Name: Jianlei Yang
Author-X-Name-First: Jianlei
Author-X-Name-Last: Yang
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Title: Does economic policy uncertainty impact the mean–variance relation? Evidence from China
Abstract: 
 This study shows the impact of economic policy uncertainty (EPU) on the mean–variance relation. Using the news-based EPU index of China, we discover the significant effect of EPU on the mean–variance relation of the Chinese stock market. Besides, our empirical findings reveal that the influence of EPU on the market’s mean–variance relation is time-varying. During the low-EPU periods, the stock market’s excess return is positively related to conditional variance; during the high-EPU periods, the stock market’s excess return is negatively related to conditional variance. Furthermore, our results are robust across different conditional variance models as well as controlling for Fama–French three factors of the Chinese stock market.
Journal: Applied Economics
Pages: 3438-3456
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883526
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883526
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3438-3456




Template-Type: ReDIF-Article 1.0
Author-Name: Imtithal A. Althumairi
Author-X-Name-First: Imtithal A.
Author-X-Name-Last: Althumairi
Title: Constructing a social accounting matrix for Saudi Arabia: sources and methods
Abstract: 
 Even though Saudi Arabia is the largest country in the Middle East, and despite the magnitude of its economy, there have been no attempts to build a social accounting matrix (SAM) for Saudi Arabia based on the country’s real, official data. Thus, this study documents the construction procedures of the 2017 SAM for Saudi Arabia using high-quality official statistics. The procedures can be divided into two main steps. First, a highly aggregated macro-SAM is constructed. Second, the macro-SAM is disaggregated into a micro-SAM with the macro-SAM entries serving as control totals for sub-matrices of the micro-SAM. The results exhibit consistency and balance, which comprises a decent level of disaggregation for sectors via 54 accounts that are relevant for policy evaluation: 18 production activities, 18 commodities accounts, 4 factors of production, 10 institutions, and 4 other accounts. The resulting SAM is useful because it provides a consistent framework for socio-economic accounting of the Saudi economy.
Journal: Applied Economics
Pages: 3474-3498
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883528
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883528
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3474-3498




Template-Type: ReDIF-Article 1.0
Author-Name: Shi Li
Author-X-Name-First: Shi
Author-X-Name-Last: Li
Author-Name: Long Zhao
Author-X-Name-First: Long
Author-X-Name-Last: Zhao
Author-Name: Hao Shen
Author-X-Name-First: Hao
Author-X-Name-Last: Shen
Title: Foreign direct investment and institutional environment: the impact of bilateral investment treaties
Abstract: 
 Institutional factors are a critical driving force for the rapid growth of outward foreign direct investment (FDI) in developing countries. This article attempts to explain how developing countries can take advantage of bilateral investment treaties (BITs) to reduce investment uncertainties caused by informal institutional distance and help domestic companies invest abroad. The results confirm that the cultural difference between China and a host country is negatively associated with the likelihood of FDI entry into the host country. BITs function as a substitute for the host country’s institutional environment by reducing investment uncertainties caused by cultural distance. Moreover, state-owned enterprises are less responsive to BITs in host countries than private enterprises, suggesting that private firms rely more on BITs to reduce their investment risks abroad.
Journal: Applied Economics
Pages: 3535-3548
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883535
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883535
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3535-3548




Template-Type: ReDIF-Article 1.0
Author-Name: David Meenagh
Author-X-Name-First: David
Author-X-Name-Last: Meenagh
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Title: A structural model of coronavirus behaviour for testing on data behaviour
Abstract: 
 We fit the logistic function, the reduced form of epidemic behaviour, to the data for deaths from Covid-19, for a wide variety of countries, with a view to estimating a causal model of the Covid virus’ progression. We then set up a structural model of the Covid virus behaviour based on evolutionary biology and social household behaviour; we estimated and tested this by indirect inference, matching its simulated logistic behaviour to that found in the data. In our model, the virus’ progression depends on the interaction of strategies by household agents, the government and the virus itself as programmed by evolution. Within these interactions, it turns out that there is substitution between government topdown direction (such as lockdown) and social reaction to available information on the virus’ behaviour. We also looked at the experience of second waves, where we found that countries successfully limited second waves when they had had longer first waves and followed policies of localized reaction in the second.
Journal: Applied Economics
Pages: 3515-3534
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883531
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883531
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3515-3534




Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Author-Name: Luca Gambarelli
Author-X-Name-First: Luca
Author-X-Name-Last: Gambarelli
Author-Name: Silvia Muzzioli
Author-X-Name-First: Silvia
Author-X-Name-Last: Muzzioli
Title: The skewness index: uncovering the relationship with volatility and market returns
Abstract: 
 The SKEW index of the Chicago Board Options Exchange (CBOE), launched in February 2011, measures the tail risk not fully captured by the VIX index. In this paper we introduce, for the first time, a skewness index for the Italian stock market (ITSKEW) and investigate the pairwise and trilateral relations of this index with volatility and market returns. The results are compared with those of the US market. Data for the period 3 January 2011 to 29 December 2017 are used and three main results are found. First, in both the US and the Italian markets, the skewness index acts as a measure of market greed, as opposed to market fear, in the sense that it captures investor excitement to a larger extent than investor fear. Second, increases in the skewness index are related to returns with high significance in the Granger causality test, while the reverse is not the case. Last, volatility and skewness may give conflicting signals. When skewness and volatility indices move in the same direction, investors should rely on volatility because it has a stronger influence on market returns. The implications for investors and policy-makers are outlined.
Journal: Applied Economics
Pages: 3619-3635
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1884837
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1884837
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3619-3635




Template-Type: ReDIF-Article 1.0
Author-Name: Mara-José Gutiérrez
Author-X-Name-First: Mara-José
Author-X-Name-Last: Gutiérrez
Author-Name: Belén Inguanzo
Author-X-Name-First: Belén
Author-X-Name-Last: Inguanzo
Author-Name: Susan Orbe
Author-X-Name-First: Susan
Author-X-Name-Last: Orbe
Title: Distributional impact of COVID-19: regional inequalities in cases and deaths in Spain during the first wave
Abstract: 
 Spain is being hit hard by the COVID-19 pandemic. During the first wave, from mid-March to early June 2020, the disease caused nearly 30,000 deaths in a population of 47 million. This article quantifies the unevenness in the distribution of epidemiological variables across the Spanish territory. The study is relevant because Spain is divided into regions that hold devolved authority for providing health care services to their citizens. Using inequality metrics, the study shows: i) By mid-April inequality in the epidemiological variables reached a stationary value that changed little with the incorporation of new cases and deaths. At the end of the outbreak, cumulative cases and deaths were fairly unevenly distributed across Spanish provinces; ii) Inequality shows a monotonic downward trend throughout the outbreak showing a decrease from the onset to the end ranging from 22% to 49% in cases and between 17% and 42% in deaths; iii) Over 90% of the inequality observed can be attributed to differences between regions, while less than 10% is due to the differences across provinces within regions. Awareness of the existence and nature of the inequality observed in the epidemiological variables is needed to develop successful policies to improve health services in Spain.
Journal: Applied Economics
Pages: 3636-3657
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1884838
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1884838
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3636-3657




Template-Type: ReDIF-Article 1.0
Author-Name: Jan C. van Ours
Author-X-Name-First: Jan C.
Author-X-Name-Last: van Ours
Title: What a drag it is getting old? Mental health and loneliness beyond age 50
Abstract: 
 This paper studies mental health and loneliness in the Netherlands for individuals beyond age 50. The analysis is based on panel data over the period 2008 to 2018 and focuses on the effects of life events and ageing. It appears that mental health gets worse and loneliness increases if individuals lose their partner (through divorce or death) or become unemployed. On average, the mental health of males and high educated females improves at retirement. With respect to ageing, the main conclusions are that mental health improves while loneliness goes down at least up to the high 70s. From the perspective of mental health and loneliness, it does not seem to be a drag getting old.
Journal: Applied Economics
Pages: 3563-3576
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1883540
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883540
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3563-3576




Template-Type: ReDIF-Article 1.0
Author-Name: Arnar Buason
Author-X-Name-First: Arnar
Author-X-Name-Last: Buason
Author-Name: Dadi Kristofersson
Author-X-Name-First: Dadi
Author-X-Name-Last: Kristofersson
Author-Name: Kyrre Rickertsen
Author-X-Name-First: Kyrre
Author-X-Name-Last: Rickertsen
Title: Habits in frequency of purchase models: the case of fish in France
Abstract: 
 The quantity purchased in a period is the result of two decisions: the frequency of purchase and the average purchase on each occasion. We introduce habit formation into demand systems modelling each of these decisions. An econometric model is estimated by Bayesian methods. The data generating processes of the frequency and quantity decisions are assumed to follow, respectively, a multivariate Poisson log-normal distribution and a multivariate gamma log-normal distribution. We estimate the systems using French scanner data for purchases of fish. The results suggest that habits in purchase frequencies are important, while habits in average purchased quantities are less important. Furthermore, we find that price changes are important for explaining average quantities purchased but have only minor effects on purchase frequencies.
Journal: Applied Economics
Pages: 3577-3589
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1883541
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883541
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3577-3589




Template-Type: ReDIF-Article 1.0
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Qingzhe Jiang
Author-X-Name-First: Qingzhe
Author-X-Name-Last: Jiang
Author-Name: Jun Zhao
Author-X-Name-First: Jun
Author-X-Name-Last: Zhao
Title: Valuing the greenhouse effect of political risks: the global case
Abstract: 
 To empirically verify whether political risks affect global carbon dioxide (CO2) emissions, this study investigates the effect of political risks on countries’ CO2 emissions by employing a panel dataset of 66 countries over the period 2003–2018. Furthermore, this study also separately tests three major effects (i.e., scale effect, technique effect, and structure effect) of political risks on countries’ CO2 emissions. Considering regional heterogeneity, this study conducts an asymmetric analysis of the impact of political risks on CO2 emissions. The results show that the total effect of political risks on CO2 emissions is negative for the global panel. Although political risks increase countries’ CO2 emissions by promoting secondary industry (structure effect) for the global panel, the scale and technique effects of political risks can alleviate the greenhouse effect. Furthermore, the impacts of the influencing factors on countries’ CO2 emissions are significantly heterogeneous and asymmetric across different quantiles. Based on the above findings, this study provides several targeted policy suggestions for mitigating countries’ CO2 emissions.
Journal: Applied Economics
Pages: 3604-3618
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1883543
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883543
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3604-3618




Template-Type: ReDIF-Article 1.0
Author-Name: Umar Farooq
Author-X-Name-First: Umar
Author-X-Name-Last: Farooq
Author-Name: Adeel Nasir
Author-X-Name-First: Adeel
Author-X-Name-Last: Nasir
Author-Name:  Bilal
Author-X-Name-First: 
Author-X-Name-Last: Bilal
Author-Name: Muhammad Umer Quddoos
Author-X-Name-First: Muhammad Umer
Author-X-Name-Last: Quddoos
Title: The impact of COVID-19 pandemic on abnormal returns of insurance firms: a cross-country evidence
Abstract: 
 This research investigates the abnormal returns of 958 insurance companies from Australia, Canada, Germany, USA, UK, Brazil, India, and Indonesia under the COVID-19 scenario. This study deploys the event study methodology to analyse the effects of COVID-19 on stock returns both in the short and long terms. Results reveal that, overall, COVID-19 negatively affected the stock returns, particularly in the case of insurance firms operating in developing countries. This research also explores firm-specific determinants distinguishing the most affected insurance firms. It is found that firm size, systematic risk, price-earnings ratio, profitability, and dividend yield affect the intensity of abnormal returns in response to COVID-19 but in different event windows. The investors and policymakers should consider these factors in connection with the risk mitigating strategies.
Journal: Applied Economics
Pages: 3658-3678
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1884839
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1884839
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3658-3678




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyong Dai
Author-X-Name-First: Xiaoyong
Author-X-Name-Last: Dai
Author-Name: Zhiqi Zhao
Author-X-Name-First: Zhiqi
Author-X-Name-Last: Zhao
Title: Behavioural additionality of China’s business-tax-to-VAT reform on firms’ internal and external R&D investment
Abstract: 
 This paper investigates the unintended effect of the business-tax-to-VAT (B2V) reform in China on manufacturing firms’ internal and external R&D behaviour. The B2V reform was implemented in the service sectors to replace business tax with value-added tax. It creates tax incentives for downstream manufacturing firms to increase external R&D outsourcing, as purchasing R&D and technology services becomes tax-deductible after the reform. Using a large administrative firm-level dataset, we found that downstream manufacturing firms that were previously more closely linked to upstream R&D and technology services are more affected by the B2V reform, and tend to increase external R&D outsourcing and reduce internal R&D expenditures. The unintended behavioural additionality is mainly driven by small and medium-sized firms and firms with low R&D capabilities which usually bear high costs of conducting internal R&D and rely more on external R&D services. Our study implies the possibility of leveraging tax incentive measures to encourage firms to seek external knowledge and technologies.
Journal: Applied Economics
Pages: 3590-3603
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1883542
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883542
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3590-3603




Template-Type: ReDIF-Article 1.0
Author-Name: Oveis Madadian
Author-X-Name-First: Oveis
Author-X-Name-Last: Madadian
Author-Name: Walter Aerts
Author-X-Name-First: Walter
Author-X-Name-Last: Aerts
Author-Name: Tom Van Caneghem
Author-X-Name-First: Tom
Author-X-Name-Last: Van Caneghem
Title: Value relevance of peer-based benchmarking of discretionary expenses and business strategy
Abstract: 
 Research on value relevance of reported selling, general and administrative expenses (SG&A) generally employs historical SG&A as reference point for assessment. This practice tends to ignore the interpretational ambiguity that surrounds the economics of SG&A expenditure and what it means for future profitability and firm value. Organizational theories stress the importance of peer-based benchmarking as an aid for assessment, especially when assessment uncertainty is high, and argue that similarity to peers holds information by lending sensibility, appropriateness and technical value to observed behaviour, thereby reducing assessment uncertainty. Using a sample of listed US firms, we investigate whether SG&A similarity to an industry-specific peer-based benchmark conveys value-relevant information, reducing information asymmetry between firms and investors. We find that only for firms with SG&A exceeding the peer-based benchmark in the previous period, SG&A similarity is associated with higher future financial performance and reduces information asymmetry between firms and investors. We also find that both contemporaneous stock returns and future firm value impound this uncertainty-reducing information conveyed by SG&A similarity. Results further show that the value-relevance of SG&A similarity mainly holds for firms with a Defender-type business strategy and firms from peer groups where business strategies are more similar.
Journal: Applied Economics
Pages: 3694-3714
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885610
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885610
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3694-3714




Template-Type: ReDIF-Article 1.0
Author-Name: Rui Xie
Author-X-Name-First: Rui
Author-X-Name-Last: Xie
Author-Name: Meng Niu
Author-X-Name-First: Meng
Author-X-Name-Last: Niu
Author-Name: Bin Su
Author-X-Name-First: Bin
Author-X-Name-Last: Su
Author-Name: Jiali Ge
Author-X-Name-First: Jiali
Author-X-Name-Last: Ge
Title: Are global value chains merely global? The case of Chinese Provinces in global value chains
Abstract: 
 We extend the measure of the global value chain (GVC) decomposition framework to the sub-national regional level based on a new Trans-national Inter-regional Input-Output (TIIO) table , which covers 30 Chinese provinces for 2007 and 2012. We answer the question whether fragmentation of GVCs is mainly national, regional or merely global by deriving the geographical distribution by province and the trends related to the production chain of a particular final good. Depending on whether the intermediate inputs cross borders for production or not, we further divide these production activities into GVC or non-GVC activities and identify the changing mechanism from the perspective of simple and complex GVC activities. We find that coastal provinces show a higher decline in nationalization compared to inland provinces. The degree of regionalization weakening of each province is generally the same, which is more evident in coastal provinces. Additionally, coastal provinces show a more significant decline of globalization compared to inland provinces. Regarding border crossing production-sharing activities, complex GVC embeddedness is the main mode of Chinese provinces. They, however, show signs of gradual weakening over time. This is more pronounced in the dynamic evolution of regionalization and globalization in coastal provinces.
Journal: Applied Economics
Pages: 3778-3794
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1886236
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1886236
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3778-3794




Template-Type: ReDIF-Article 1.0
Author-Name: Liangyong Wan
Author-X-Name-First: Liangyong
Author-X-Name-Last: Wan
Author-Name: Jianyou Ou
Author-X-Name-First: Jianyou
Author-X-Name-Last: Ou
Author-Name: Bingxuan Lin
Author-X-Name-First: Bingxuan
Author-X-Name-Last: Lin
Title: Does religion affect cost stickiness? Evidence from China
Abstract: 
 Using Chinese A-share listed industrial firms between 2009 and 2016, we find that greater religious influence is negatively associated with firm cost stickiness. This negative association is more significant for firms displaying higher agency costs, lower risk aversion, and a higher probability of corruption. Our findings highlight the importance of informal institutions such as religion on corporate behaviours such as cost stickiness.
Journal: Applied Economics
Pages: 3730-3743
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885612
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885612
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3730-3743




Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Title: Forecasts of growth in US residential investment: accuracy gains from consumer home-buying attitudes and expectations
Abstract: 
 This study focuses on the Federal Reserve and private forecasts of growth in real residential investment. The aim is to improve predictive accuracy by first evaluating these forecasts. The results for 1984–2015 reveal that the Federal Reserve and private forecasts are generally free of systematic bias, superior to the naïve benchmark, and predict directional change with high accuracy rates. However, these forecasts do not contain detailed information in consumer home-buying attitudes and expectations. Using a subset of such information and real-time data on residential investment, a knowledge model (KM) is constructed to produce comparable forecasts. The test results indicate that the KM forecasts of growth in residential investment contain distinct and useful predictive information, and the combined Federal Reserve, private, and KM forecasts show reductions in forecast errors that are more significant at longer horizons. As such, we conclude that consumer survey responses help improve forecast accuracy. Given that accurate forecasts contribute to the success of policy, more transparency in Federal Reserve Open Market Committee (FOMC) decisions is encouraged. With more transparency and clear communication, consumers are able to provide more informative responses, which can then be employed to produce more accurate forecasts of growth in residential investment.
Journal: Applied Economics
Pages: 3744-3758
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885613
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885613
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3744-3758




Template-Type: ReDIF-Article 1.0
Author-Name: Carla Ferreira
Author-X-Name-First: Carla
Author-X-Name-Last: Ferreira
Author-Name: Lígia M. Costa Pinto
Author-X-Name-First: Lígia M.
Author-X-Name-Last: Costa Pinto
Author-Name: Lina Lourenço-Gomes
Author-X-Name-First: Lina
Author-X-Name-Last: Lourenço-Gomes
Title: Effect of region of origin on willingness to pay for wine: an experimental auction
Abstract: 
 The purpose of this paper is to examine the effect of the region of origin on wine consumers’ preferences and willingness to pay for wine together with other determinants, using an incentive compatible tool. Data were collected through an experimental auction mechanism in different Portuguese wine regions. Consumers’ willingness to pay for wines from three regions of origin was elicited under two information scenarios: i) blind tasting followed by extrinsic information regarding the region of origin and ii) full information provided at once. Wine consumers characteristics were also collected from a sample of 168 wine consumers. Results reveal that, the region of origin influences the hedonic evaluation of consumers.Consumers are willing to pay higher prices in full information condition, on average. Purchase frequency and less self-reported wine knowledge have a negative effect on the willingness to pay, while taste has a positive effect. Controlling for organoleptic attributes, and the importance of extrinsic cues, the region of origin has a significant influence on willingness to pay, as well as on the hedonic rating, and purchase frequency. This study offers important insights for policy makers regarding the existence of significant preference heterogeneity and the role of the region of origin.
Journal: Applied Economics
Pages: 3715-3729
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885611
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885611
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3715-3729




Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios Kourouklis
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Kourouklis
Title: Public subsidies for R&D and public sector pharmaceutical innovation
Abstract: 
 This paper investigates the relationship between public subsidies for research and development (R&D) and public sector drug development. For the analyses, a novel dataset based on the European clinical trial registry was created, and panel data between 2007 and 2015 originating from twenty-four countries in the European Union were incorporated. For the econometric analysis, I exploit an exogenous shock coming from the Lisbon strategy on innovation policy in Europe to deal with potential endogeneity issues. Two-stage least squares (2SLS) estimates suggest that an increase in public subsidies causes an increase in Phase I clinical trials for non-orphan drugs and also stimulates basic research and Phases I and II of orphan medicinal product clinical trials. These effects are robust, when different time lags and measures of innovation apply, and they are also robust to heteroscedasticity-based instrument estimations. Overall, the results imply that government funding is an important determinant of the pharmaceutical innovation process across different stages and products. Moreover, foreign sources of government funding have a negative impact on the European clinical trials across the examined phases and innovations, while at the same time, the importance of the potential market-size is low.
Journal: Applied Economics
Pages: 3759-3777
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885614
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885614
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3759-3777




Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Author-Name: Fu-Wei Huang
Author-X-Name-First: Fu-Wei
Author-X-Name-Last: Huang
Title: Insurer acquisition in a narrow-synergy structure and policyholder protection under capital regulation
Abstract: 
 The article examines the effect of capital regulation on life insurance policyholder protection. The acquisition consists of a standard-call narrow insurance proposal for the acquirer and a barrier-cap synergy insurance proposal for the acquiree. Developing a contingent claim model integrating these features, we conclude that the acquisition creates value for consolidation. We show that the policyholder protection is enhanced under a stringent capital regulation when the consolidated insurer’s leverage is high. The favourable regulatory effect is significant when the premature default risk of the acquiree is high. Our results also suggest that a stringent capital regulation by decreasing the acquirer’s leverage decreases the acquisition incentive while decreasing the acquiree’s leverage increases the motivation. This article discusses the capital regulation effect on insurer acquisition strategies, which depends on both the acquirer’s and acquiree’s management structures.
Journal: Applied Economics
Pages: 3679-3693
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885609
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885609
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3679-3693




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Neugart
Author-X-Name-First: Michael
Author-X-Name-Last: Neugart
Title: The legacy effect of socialism on risky savings
Abstract: 
 The riskiness of individuals’ saving behaviour affects their old-age wealth and has wider-ranging implications for macroeconomic development and stability. To which extent individuals take financial risks depends on their preferences, which may be moulded by the economic system they live in. I analyse households’ financial risk taking after the collapse of the German Democratic Republic. Conditional on their income and financial wealth positions, East German households were more prone to financial risk taking than West German households after reunification. The differences in risk taking were quantitatively relevant shortly after reunification and gradually vanished until 2008. Risk taking of households who were exposed to the socialist system longer was higher.
Journal: Applied Economics
Pages: 3810-3831
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1887448
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1887448
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3810-3831




Template-Type: ReDIF-Article 1.0
Author-Name: Wasseem Mina
Author-X-Name-First: Wasseem
Author-X-Name-Last: Mina
Title: Do Labor Market Flexibility and Efficiency Increase Government Social Protection Expenditures?
Abstract: 
 This article examines the relationship between labour market flexibility and efficiency and social protection expenditures. Building on the theories of government expenditures and the empirical literature on the determinants of social protection, the article examines empirically the relationship between flexible labour market and social protection expenditures. The empirical model explains social protection mainly in terms of the demand and supply of social protection, modernization theory and political institutions, namely democracy. Labour market flexibility and efficiency indicators include hiring and firing policies, labour-employer cooperation, wage determination flexibility, redundancy costs, linking pay to productivity, reliance on professional management, and the ratio of women in the labour force. We use a sample of 44 developed and emerging economies for the period 2007–2014 and adopt instrumental variables and two-step generalized method of moments estimation methodologies to account for endogeneity. Estimates show that linking pay to productivity, wage flexibility, and redundancy costs reduce social protection expenditures, while the ease of hiring and firing increases them. The article draws attention to the positive impact that flexible and efficient labour markets and organization-level human-resource policies have on reducing social protection expenditures and increasing fiscal space.
Journal: Applied Economics
Pages: 3871-3887
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1888861
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1888861
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3871-3887




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel L Thornton
Author-X-Name-First: Daniel L
Author-X-Name-Last: Thornton
Title: The financial crisis: what caused it and when and why it ended
Abstract: 
 The financial crisis was the second worst in U.S. history. There are a variety of explanations for what caused it, but no consensus. Moreover, there is little agreement about when or why it ended. This paper investigates when and why the financial crisis began and when and why it ended. The analysis shows that the financial crisis was caused by a large reduction in mortgage lending standards which was primarily due to Congresses’ mandate to increase homeownership. The paper provides evidence that the financial crisis was abating by January 2009 and ended when the recession ended in June 2009. The paper argues that neither deliberate monetary nor fiscal policy actions ended it. Rather, it was brought to an end by the unprecedented increase in the monetary base caused by the Fed’s lending to banks and other financial institutions immediately following Lehman Bros. bankruptcy announcement on 15 September 2008. The increase was not a deliberate policy action but an unintended consequence of the fact that the Fed was no longer able to sterilize its lending after Lehman’s bankruptcy announcement. The financial crisis ended because the Fed inadvertently followed Walter Bagehot’s recommendation that during a crisis the central bank should lend freely. The Fed followed Bagehot’s advice in spite of Bernanke’s effort to sterilize the Fed’s lending.
Journal: Applied Economics
Pages: 3854-3870
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1887806
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1887806
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3854-3870




Template-Type: ReDIF-Article 1.0
Author-Name: Ju-Hee Kim
Author-X-Name-First: Ju-Hee
Author-X-Name-Last: Kim
Author-Name: Kyung-Ran Choi
Author-X-Name-First: Kyung-Ran
Author-X-Name-Last: Choi
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Title: Evaluating the South Korean public perceptions and acceptance of offshore wind farming: evidence from a choice experiment study
Abstract: 
 The South Korean government is attempting to expand the capacity of offshore wind farming (OWF) from 1.2GW in 2017 to 16.5GW in 2030. Accordingly, the environmental impacts of OWF have become a social issue, and the government needs information about the public acceptance of OWF. This paper seeks to evaluate the public acceptance of OWF in South Korea through a choice experiment (CE). The five attributes chosen are the distance from land to the offshore wind farm (Distance), the number of generators in the offshore wind farm (Number), the height of the generators to be seen above sea level (Height), a decrease in marine life (Life), and the location of the offshore wind farm (Location). The price attribute is an increase in yearly household income tax. A mixed logit model is applied to estimating a utility function from the gathered CE data. All the coefficients for the attributes in the utility are estimated with statistical significance. The sign of the coefficient for Distance is positive, but the signs of all other coefficients are negative. The results of estimating the utility function can be useful in evaluating the environmental impacts of an OWF project from a monetary standpoint.
Journal: Applied Economics
Pages: 3889-3899
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1888862
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1888862
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3889-3899




Template-Type: ReDIF-Article 1.0
Author-Name: Qian Li
Author-X-Name-First: Qian
Author-X-Name-Last: Li
Author-Name: Toshiyuki Fujita
Author-X-Name-First: Toshiyuki
Author-X-Name-Last: Fujita
Title: Transfers in international environmental agreements under heterogeneity
Abstract: 
 This paper analytically compares the effectiveness of internal and external transfers in encouraging participants in international environmental agreements (IEAs). We divide countries into two homogeneous groups: developed and developing countries. Further, we assume that strong asymmetries exist in their abatement benefits and costs. Using the non-cooperative game model of coalition formation, our result shows that both types of transfers can enlarge the size of self-enforcing coalitions, and the external transfers are always preferred.
Journal: Applied Economics
Pages: 3899-3910
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2020.1861209
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861209
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3899-3910




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument
Author-X-Name-First: Hakan
Author-X-Name-Last: Berument
Author-Name: Richard T. Froyen
Author-X-Name-First: Richard T.
Author-X-Name-Last: Froyen
Title: The Fisher effect on long-term U.K. interest rates in alternative monetary regimes: 1844-2018
Abstract: 
 The Fisher Effect is one of the most widely studied relationships in monetary economics. Previous studies have found little evidence of a Fisher effect in pre-World War I data for the United Kingdom. An explanation for this is the near white noise property of the inflation rate under the Classical Gold Standard. There is more evidence of a Fisher effect in the post-World War II years when the inflation rate showed more persistence. This paper studies the evidence on the Fisher effect over the time period 1844-2018. This period covers several distinct monetary regimes. The monetary regime is an important factor determining the time series behavior of the inflation rate which, in turn, has been shown to be crucial to the strength of the Fisher effect. Distinctive features of the study are the focus on the long-term interest rate and coverage of the current inflation targeting regime in the United Kingdom.
Journal: Applied Economics
Pages: 3795-3809
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1886239
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1886239
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3795-3809




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaochen Jiang
Author-X-Name-First: Xiaochen
Author-X-Name-Last: Jiang
Author-Name: Jim Huangnan Shen
Author-X-Name-First: Jim Huangnan
Author-X-Name-Last: Shen
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: Toward an empirical investigation of the long-term debt and financing deficit nexus: evidence from Chinese-listed firms
Abstract: 
 As the literature has studied the financing method of Chinese-listed firms for a long time, but with inconclusive indications, this research thus adopts non-financial Chinese-listed firms’ data from 2003 to 2015 to investigate the relationship between long-term debt financing and financing deficit. We pay particular attention to three channels (ownership concentration, market timing, and state ownership) that potentially affect the adoption of long-term debt financing when there is a financing deficit. The empirical analysis documents a positive relationship between financing deficit and changes in the long-term debt ratio in our sampled firms for both static and dynamic panel models. Moreover, among the three channels we show that state ownership has the strongest positive impact on the adoption of long-term debt financing, followed by ownership concentration, while the weakest channel is the market timing’s negative effect. In general, our empirical analysis finds that the important external financing method of long-term debt is most likely to be impacted by the state ownership aspect.
Journal: Applied Economics
Pages: 3832-3853
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1887805
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1887805
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3832-3853




Template-Type: ReDIF-Article 1.0
Author-Name: Chengyun Sun
Author-X-Name-First: Chengyun
Author-X-Name-Last: Sun
Author-Name: Don U.A. Galagedera
Author-X-Name-First: Don U.A.
Author-X-Name-Last: Galagedera
Title: Do superannuation funds manage disbursements and risk efficiently in generating returns? New evidence
Abstract: 
 Superannuation funds (SFs) offer pension programmes in Australia. Generally, employers must pay money in to an SF account in the name of their employees and employees have the freedom to select an SF of their choice. In this paper, we determine how efficiently SFs manage disbursements (costs, fees and expenses) and risk in generating returns to investors from 2017 to 2019. We introduce two measures (disbursement utilization and risk utilization) under the data envelopment analysis (DEA) methodological framework to compare disbursements and risk management performance in relation to overall management performance. The average disbursements utilization is 0.26 and risk utilization is 0.94. On average, more than 80% reduction in disbursements is required to gain disbursement efficiency whereas the average risk reduction required to gain risk-efficiency is less than 20%. No individual SF is disbursement efficient in all five sampled years. Generally, SFs manage disbursements poorly compared to risk in return generation. Variation in fees charged by managed funds is an industry-wide concern. Therefore, how funds manage disbursements is an important consideration for investors. The evidence highlights SF managers the need to pay attention to disbursements management in their pursuit of excellence in overall fund management performance.
Journal: Applied Economics
Pages: 3931-3947
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1888863
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1888863
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3931-3947




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Donovan Rasamoelison
Author-X-Name-First: Jean Donovan
Author-X-Name-Last: Rasamoelison
Author-Name: Susan Averett
Author-X-Name-First: Susan
Author-X-Name-Last: Averett
Author-Name: David Stifel
Author-X-Name-First: David
Author-X-Name-Last: Stifel
Title: International student-migrant flows and growth in low- and middle-income countries: brain gain or brain drain?
Abstract: 
 The number of students flowing from low-income countries to high-income countries has grown over the past several decades but is likely to fall substantially in the coming years due to the coronavirus pandemic. To gauge the potential impact of the coronavirus-induced reduction in the international flow of student migrants, we estimate the pre-pandemic effects of student migration from 122 low- and middle-income countries to French- and English-speaking high-income countries on the economic growth of the sending countries. Using region fixed-effects and instrumental-variables estimators to address the potential endogeneity of student-migrant flows, we find positive and statistically significant effects of student migration on per capita GDP in sending countries. These findings are robust to different time lags, and are increasing over time. Our results indicate that student migrants have a modest but meaningful impact on the short-run economic growth of their home countries. In terms of the mechanisms through which student-migrant flows can affect growth of the home countries, we find evidence of ‘incentive effects’ for students going to English-speaking countries, and evidence of student-migrant flows affecting interest in politics and democratic political systems in the sending countries.
Journal: Applied Economics
Pages: 3913-3930
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1886237
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1886237
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3913-3930




Template-Type: ReDIF-Article 1.0
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: International convergence in population happiness: evidence from recent data
Abstract: 
 In the immense literature on convergence of income and many other variables, this is the first study to consider cross-country convergence in population happiness from large international samples based on data from World Happiness Report (WHR). Three main points stand out. First, WHR data yield significant evidence that is supportive of unconditional beta-convergence in happiness across countries. Second, the evidence is also consistent with sigma-convergence in terms of coefficient of variation. Third, the implied speed of beta-convergence is close to the ‘iron law’ of about 2% per year. Information from World Database of Happiness, which is for earlier years and covers a shorter period, also indicates sigma-convergence in terms of both standard deviation of logarithms and coefficient of variation. It indicates beta-convergence too, but at a slower pace. These findings seem important and reassuring in the context of the frequent worries about lack of income convergence in broad groups of developed and developing countries and the implied possible increase in inequality across countries.
Journal: Applied Economics
Pages: 3984-3991
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1891195
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1891195
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3984-3991




Template-Type: ReDIF-Article 1.0
Author-Name: Julian Inchauspe
Author-X-Name-First: Julian
Author-X-Name-Last: Inchauspe
Title: Fiscal policy dynamics under a consolidation constraint: evidence from a sign-restricted SVAR with orthogonalized business cycle and monetary policy for Australia
Abstract: 
 In this study, I employ a SVAR method that filters out the business cycle and monetary policy to produce conservative but realistic estimates of fiscal responses and multipliers for Australia that are unavailable in the literature. The expenditure and tax multipliers reach a maximum of 0.73 and 0.54, respectively, but their comparison alternates depending on the time horizon. Using a linear combination of fiscal shocks, I construct conjectural variations to analyse the data dynamics and inform policymaking on ways of restoring economic activity post-Covid-19. Importantly, it is demonstrated that a policy that simultaneously increases expenditure and taxes can serve as both a fiscal stimulus and a debt reduction instrument in the medium run, with dynamics subject to a transitory reverse overshooting. This finding is particularly relevant for policymakers that are adverse to increasing public debt with discretionary fiscal measures.
Journal: Applied Economics
Pages: 3992-4016
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1893894
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1893894
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3992-4016




Template-Type: ReDIF-Article 1.0
Author-Name: Sy-Hoa Ho
Author-X-Name-First: Sy-Hoa
Author-X-Name-Last: Ho
Author-Name: Jamel Saadaoui
Author-X-Name-First: Jamel
Author-X-Name-Last: Saadaoui
Title: Symmetric and asymmetric effects of exchange rates on money demand: empirical evidence from Vietnam
Abstract: 
 This empirical investigation aims at exploring the determinants of money demand in Vietnam by using both linear and nonlinear autoregressive distributed lag models over the period spanning from the third quarter of 2000 to the first quarter of 2018. Our findings can be summarized as follows: firstly, when the shock is symmetric (i.e. a permanent nominal appreciation of 1%), the money demand increases by 3.7% in the long term. Secondly, when the shock is asymmetric, for a permanent nominal appreciation of 1%, we observe an increase of 15.6% in the money demand. Whereas for a permanent nominal depreciation of 1%, we observe a decrease of 7.4% in the money demand. These results are consistent with symmetry tests and lead us to think that asymmetries occur mainly in the short run and are transmitted to the long run.
Journal: Applied Economics
Pages: 3948-3961
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1888864
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1888864
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3948-3961




Template-Type: ReDIF-Article 1.0
Author-Name: Bianca Biagi
Author-X-Name-First: Bianca
Author-X-Name-Last: Biagi
Author-Name: Steven B. Caudill
Author-X-Name-First: Steven B.
Author-X-Name-Last: Caudill
Author-Name: Laura Ciucci
Author-X-Name-First: Laura
Author-X-Name-Last: Ciucci
Author-Name: Claudio Detotto
Author-X-Name-First: Claudio
Author-X-Name-Last: Detotto
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Title: Relative bargaining power of residential home traders and real estate investors
Abstract: 
 This study uses a bargaining power model to examine the relative bargaining power of those who self-identify as being either residential home traders or investors, both in the Corsican housing market. In doing so, ours is the first study to measure investment advantages (disadvantages) related to property location and size. Results indicate that investors pay, on average, 6.5–10.5% more and sell, on average, for 6.5–10.5% less than those in the market for primary residences. Findings also show a significant and negative demand effect for investors. Investors are shown to gain more bargaining power as the property size increases and the distance from the sea is longer.
Journal: Applied Economics
Pages: 3962-3971
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1890685
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1890685
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3962-3971




Template-Type: ReDIF-Article 1.0
Author-Name: Fabienne Femenia
Author-X-Name-First: Fabienne
Author-X-Name-Last: Femenia
Author-Name: Laure Latruffe
Author-X-Name-First: Laure
Author-X-Name-Last: Latruffe
Author-Name: Jean-Paul Chavas
Author-X-Name-First: Jean-Paul
Author-X-Name-Last: Chavas
Title: Responsiveness of farm investment to price changes: evidence from the French crop sector
Abstract: 
 In this article, we investigate the investment behaviour of French crop farmers between 2002 and 2014, with a focus on their adjustments to investment prices and farm output prices, which became more volatile after 2007. We estimate an econometric model of farm investment accounting for farm heterogeneity and allowing for change in behavioural parameters after 2007. Our results show evidence of a significant behavioural change in large investments over time, related to a change in farmers’ preferences towards risk, which can explain the relative stability of farm investment over the period, despite the strong increase in crop price levels and in crop price volatility after 2007.
Journal: Applied Economics
Pages: 3972-3983
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1890686
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1890686
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3972-3983




Template-Type: ReDIF-Article 1.0
Author-Name: Adrián Cabrera
Author-X-Name-First: Adrián
Author-X-Name-Last: Cabrera
Author-Name: Carmelo García-Pérez
Author-X-Name-First: Carmelo
Author-X-Name-Last: García-Pérez
Title: Deprivation levels among people living homeless: a comparative study of Spain and France
Abstract: 
 This work analyses the deprivation levels of people living homeless in Spain and France before and during the Great Recession. The study uses a multidimensional perspective considering economic, social, and health aspects. To accomplish this, we obtain several indicators using the counting approach methodology and stochastic dominance techniques with statistical inference. Finally, the main factors that influence the probability of being multidimensionally deprived are analysed. The results of the study show that, although health and social dimensions have a particular relevance, indicators related to social assistance and housing instability have a greater influence on their situation. These results are intended to contribute better knowledge of an understudied group and to guide the design of future public policies.
Journal: Applied Economics
Pages: 4118-4133
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897074
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897074
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4118-4133




Template-Type: ReDIF-Article 1.0
Author-Name: Jorge M. Uribe
Author-X-Name-First: Jorge M.
Author-X-Name-Last: Uribe
Author-Name: Helena Chuliá
Author-X-Name-First: Helena
Author-X-Name-Last: Chuliá
Title: Asymmetric volatility spillovers and consumption risk-sharing
Abstract: 
 Recent studies show that international financial integration facilitates cross-country consumption risk-sharing. We extend this line of research and demonstrate that breaking financial integration down into good and bad integration is important. We also propose new measures of capital market integration, based on good and bad volatility shocks, as well as country-specific indices of consumption risk-sharing. We document a decoupling of individual consumption growth from global risk-sharing after episodes of bad volatility cross-spillovers, and a recoupling after good spillovers. Our results support current views in the literature that advocate an asymmetric treatment of good and bad volatility shocks, in order to assess the macroeconomic dynamics that follow risk episodes. They also challenge previous views that present capital market integration (without differentiating between good and bad shocks) as a prerequisite for higher international consumption risk-sharing. Overall, our outcomes cast some doubt on the actual scope for consumption risk-sharing across global financial markets.
Journal: Applied Economics
Pages: 4100-4117
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897073
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897073
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4100-4117




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaokang Zhao
Author-X-Name-First: Xiaokang
Author-X-Name-Last: Zhao
Author-Name: Guanghe Ran
Author-X-Name-First: Guanghe
Author-X-Name-Last: Ran
Author-Name: Bing Shen
Author-X-Name-First: Bing
Author-X-Name-Last: Shen
Author-Name: Xiaolong Li
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Li
Title: Do ETFs Improve the pricing efficiency of the A-share market—examining ETF holdings of individual stocks
Abstract: 
 Given the efficiency loss regarding the Chinese capital market, it is necessary to examine ways to improve pricing efficiency. Thus, this study considers A-share market listed companies (2005–2019) and adopts the proxy variable of pricing efficiency from the price adjustment speed to examine the effect of exchange traded funds (ETFs) holding shares on stock pricing efficiency. It also examines the effect of ETFs’ entry and exit regarding the underlying stocks on the stock pricing efficiency relative to traditional mutual funds. Accordingly, the pricing efficiency of ETF-holding stocks is significantly higher than that of stocks not held by ETFs. Pricing efficiency is significantly improved after ETFs enter the underlying stocks. Contrarily, there is a significant decline in pricing efficiency when ETFs exit the underlying stocks. Moreover, whereas ETFs can help improve the pricing efficiency of the Chinese stock market, traditional mutual funds have somewhat harmed market pricing efficiency. Further, mediating effect model tests showed that ETF improves the stock pricing efficiency mainly via a trading rather than a governance channel. Thus, this study provides a new theoretical basis for improving the pricing efficiency of China’s capital market.
Journal: Applied Economics
Pages: 4134-4147
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897075
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897075
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4134-4147




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W. Clements
Author-X-Name-First: Kenneth W.
Author-X-Name-Last: Clements
Author-Name: Marc Jim M. Mariano
Author-X-Name-First: Marc Jim M.
Author-X-Name-Last: Mariano
Author-Name: George Verikios
Author-X-Name-First: George
Author-X-Name-Last: Verikios
Title: Foreign-domestic substitution, import penetration and CGE modelling
Abstract: 
 Foreign-domestic substitution elasticities (the so-called ‘Armington elasticities’) determine the degree of competitiveness in demand between similar products produced in different countries and are key parameters in a variety of numerical models of international trade. Armington elasticities are part of the explanation of the large increases in market shares of foreign products relative to locally produced ones in Australia, for example. The existing literature provides only limited evidence on these elasticities for Australia with the most disaggregated produced some time ago in 1977 by Alaouze and colleagues.This paper provides up-to-date parametric estimates of Armington elasticities for Australia with a reasonable degree of sectoral disaggregation. We use 22-years of data for 20 types of merchandise commodities, using OLS, panel and restricted-panel approaches. Our estimates range from 0.30 to 2.26, with higher elasticities for Transport and Equipment products and lower ones for Energy and Minerals. We illustrate the use of our elasticities with a trade-policy simulation using a computable generable equilibrium model of the Australian economy. We analyse the sensitivity of the results to the Armington elasticities by also using the previous estimates of Alaouze and colleagues. We find an overestimation of economic effects when using the old Armington values.
Journal: Applied Economics
Pages: 4080-4099
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897072
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897072
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4080-4099




Template-Type: ReDIF-Article 1.0
Author-Name: Simona Ferraro
Author-X-Name-First: Simona
Author-X-Name-Last: Ferraro
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Author-Name: Mara Soncin
Author-X-Name-First: Mara
Author-X-Name-Last: Soncin
Title: Local governments’ efficiency and educational results: empirical evidence from Italian primary schools
Abstract: 
 In Italy, the provision of educational ancillary services (like meals and school transportation) is in charge of the municipalities. We investigate whether municipalities differ in their efficiency when providing these services and whether such heterogeneity explains some portion of the variability observed in pupils’ test scores. This paper is the first application of a non-parametric order-$${\rm{m}}$$m model and a two-stage multilevel regression model to a unique administrative dataset, made up of the entire population of Italian pupils tested in reading and mathematics at grade 5 (academic years 2012/2013 and 2014/2015). Results demonstrate that local governments have different efficiency levels in providing services to schools. The test scores’ variability among pupils is not explained by different efficiency levels of local government in producing ancillary services.
Journal: Applied Economics
Pages: 4017-4039
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1896672
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1896672
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4017-4039




Template-Type: ReDIF-Article 1.0
Author-Name: Michael T. French
Author-X-Name-First: Michael T.
Author-X-Name-Last: French
Author-Name: Karoline Mortensen
Author-X-Name-First: Karoline
Author-X-Name-Last: Mortensen
Author-Name: Andrew R. Timming
Author-X-Name-First: Andrew R.
Author-X-Name-Last: Timming
Title: A multivariate analysis of workplace mentoring and socializing in the wake of #MeToo
Abstract: 
 This paper examines workplace mentoring and socializing behaviours in the wake of #MeToo and whether these practices might be associated with women’s career trajectories. To address this important and timely topic, we fielded two surveys, one to managers (n = 203) and the other to female employees (n = 1,847), asking several questions about mentoring and male/female work interactions. Descriptive statistics show that 32% of the female employee sample report that their views on male/female work interactions are different today than they were 1–2 years ago. Multivariate analyses of the manager sample indicate that male managers are significantly less likely than female managers to mentor or interact one-on-one with female employees. The implication of these findings is that female employees may face a mentoring disadvantage in the wake of #MeToo. The adverse effects for career growth and advancement for female employees could be profound.
Journal: Applied Economics
Pages: 4040-4058
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1896673
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1896673
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4040-4058




Template-Type: ReDIF-Article 1.0
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Author-Name: Karim Mimouni
Author-X-Name-First: Karim
Author-X-Name-Last: Mimouni
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Akram Temimi
Author-X-Name-First: Akram
Author-X-Name-Last: Temimi
Title: Do economic downturns affect air pollution? Evidence from the global financial crisis
Abstract: 
 This paper investigates the impact of the 2008 global financial crisis on CO2 emissions within the Environmental Kuznets Curve hypothesis framework. Using a sample of 68 countries for the period 1960 to 2014, we unveil novel findings according to which the crisis had permanent effects on CO2 emissions. These effects vary by countries’ income level. Our findings reveal that the 2008 crisis decreased the turning point for high-income countries and increased the turning points for middle- and low-income countries. Furthermore, we find that the magnitudes in the shifts of the turning points depend on the severity of the crisis. Our results are robust to the inclusion of trade and financial development as additional explanatory variables and to the choice of the crisis inflection year.
Journal: Applied Economics
Pages: 4059-4079
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897071
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897071
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4059-4079




Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Yu
Author-X-Name-First: Xiao
Author-X-Name-Last: Yu
Author-Name: Xiangbin Cheng
Author-X-Name-First: Xiangbin
Author-X-Name-Last: Cheng
Author-Name: Kuo Zhang
Author-X-Name-First: Kuo
Author-X-Name-Last: Zhang
Author-Name: Jipeng Pei
Author-X-Name-First: Jipeng
Author-X-Name-Last: Pei
Author-Name: Karlis Rokpelnis
Author-X-Name-First: Karlis
Author-X-Name-Last: Rokpelnis
Title: Finding trustworthy common ground: analysis of Chinese trust in Americans (2012–2018)
Abstract: 
 Using four waves of CFPS data from 2012 to 2018, we focused on the degree of Chinese individuals’ trust in Americans, and found that the Chinese interviewees were ‘very distrustful’ Americans. We employed the random-effects ordered probit method to estimate the model, and made the following key conclusions: in terms of individual characteristics, (1) gender factors affect Chinese trust in Americans, the degree of trust among males is higher than that among females; (2) the Chinese individuals’ trust in Americans gradually decreases with the advance of age; (3) the level of education has a positive correlation with international trust. Meanwhile, socioeconomic factors play an important role in explaining the degree of Chinese individuals’ trust in Americans. Chinese individuals with higher social status and relative income are more likely to trust Americans. Moreover, the attitude and evaluation of individuals towards the government are also worthy of attention. Importantly, in contrast to earlier published findings, we found that Chinese Communist Party members were more likely to trust Americans, while military veterans, however, have a low degree of trust in American people, which might be highly correlated with the China–US political relations.
Journal: Applied Economics
Pages: 4229-4244
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897735
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897735
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4229-4244




Template-Type: ReDIF-Article 1.0
Author-Name: Bhushan Praveen Jangam
Author-X-Name-First: Bhushan Praveen
Author-X-Name-Last: Jangam
Author-Name: Badri Narayan Rath
Author-X-Name-First: Badri Narayan
Author-X-Name-Last: Rath
Title: Do global value chains enhance or slog economic growth?
Abstract: 
 This paper examines the link between trade and economic growth by emphasizing on recent progress of global value chains (GVCs) for a sample of 58 countries over the period 2005–2015. The findings show that trade and in particular trade linked to GVCs spurs economic growth. However, the impact of GVC engagement on economic growth is diverse as we broaden our analysis to sectoral level. The study also notes that the benefits associated with regional value chains are higher. Furthermore, functional specialization in trade also plays a key role in improving growth. Therefore, policies to promote the GVC engagement and strengthening the domestic fundamentals should be the aim for countries to further benefit from trade.
Journal: Applied Economics
Pages: 4148-4165
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897076
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897076
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4148-4165




Template-Type: ReDIF-Article 1.0
Author-Name: Zucheng Zhao
Author-X-Name-First: Zucheng
Author-X-Name-Last: Zhao
Author-Name: Charles Sutcliffe
Author-X-Name-First: Charles
Author-X-Name-Last: Sutcliffe
Title: What determines the asset allocation of defined benefit pension funds?
Abstract: 
 The asset allocation decision is one of the most important decisions made by defined benefit pension schemes, with a major effect on the scheme contribution rate, funding ratio and financial position of the sponsoring company. We investigate the determinants of the equity allocation of UK pension funds using a panel of 1,304 observations on 125 companies that were members of the FTSE 100 over the 2003–2019 period. We find that seven variables have a significant effect on the allocation between equities and bonds – maturity (as measured by the effective duration of scheme liabilities), default risk, leverage of the sponsor, size of the sponsor (or the scheme), whether the scheme is closed to future contributions, whether the scheme has significant overseas liabilities, and a time trend. Our sensitivity analysis finds that the biggest effects on the asset allocation come from scheme maturity, the scheme’s funding ratio and a time trend.
Journal: Applied Economics
Pages: 4178-4191
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897512
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897512
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4178-4191




Template-Type: ReDIF-Article 1.0
Author-Name: Ronny Freier
Author-X-Name-First: Ronny
Author-X-Name-Last: Freier
Author-Name: Michal Myck
Author-X-Name-First: Michal
Author-X-Name-Last: Myck
Author-Name: Mateusz Najsztub
Author-X-Name-First: Mateusz
Author-X-Name-Last: Najsztub
Title: Lights along the frontier: convergence of economic activity in the proximity of the Polish-German border, 1992–2012
Abstract: 
 This paper studies regional economic development on the municipality-level in Poland and Germany along the Oder–Neisse border. We use high-quality satellite night-time light intensity data as an innovative and comparable measure to proxy for overall economic activity on both sides of the border consistently over a long period of time (1992–2012). We use descriptive heat maps as well as regression analysis to investigate two aspects: first, how far is the economic convergence along the Polish-German border? Second, what effect does the distance to the border have on economic activity as measured with light emissions? Our findings suggest that convergence in overall activity across the border has been complete. Polish municipalities that used to be economically much weaker have caught up with those on the German side of the Oder and the Neisse rivers. As regards the importance of distance, we highlight different results for Germany and Poland. While distance to the border never mattered significantly for German regions, Polish municipalities closer to the border used to be substantially worse off in the early 1990s but caught up with regions further to the east by the end of the period of our analysis.
Journal: Applied Economics
Pages: 4245-4262
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1898534
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1898534
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4245-4262




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Huerta-Sanchez
Author-X-Name-First: Daniel
Author-X-Name-Last: Huerta-Sanchez
Author-Name: Thanh N. Ngo
Author-X-Name-First: Thanh N.
Author-X-Name-Last: Ngo
Author-Name: Mark K. Pyles
Author-X-Name-First: Mark K.
Author-X-Name-Last: Pyles
Title: Institutional ownership and REIT acquisitions
Abstract: 
 We examine the relationship between institutional ownership and Real Estate Investment Trust (REIT) acquisitions. We find that REITs with relatively higher levels of pre-event institutional ownership are more likely to partake in acquisitions. We additionally find that levels of institutional ownership significantly increase post-acquisitions even after controlling for other relevant factors. This increase is driven by longer-term and passive institutional investors. Further, we find positive influences from the increase in institutional ownership on both market and accounting performance, however, this is driven by increases in short-term and active institutional investor levels. Collectively, our results suggest a significant influence by institutional investment on REIT acquisition decisions that has a significant effect on shareholder wealth.
Journal: Applied Economics
Pages: 4207-4228
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897514
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897514
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4207-4228




Template-Type: ReDIF-Article 1.0
Author-Name: Hongyun Zheng
Author-X-Name-First: Hongyun
Author-X-Name-Last: Zheng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Title: Click it and buy happiness: does online shopping improve subjective well-being of rural residents in China?
Abstract: 
 There is a growing trend for rural residents to shop online, but little is known about how online shopping is associated with their subjective well-being. To fill this gap, in this study, we estimate the impact of online shopping on the subjective well-being of rural residents, using survey data collected from China. An endogenous ordered probit (EOP) model is employed to address the selection bias associated with online shopping. The empirical results reveal that online shopping significantly increases rural residents’ happiness and life satisfaction. The more rural residents spend on online shopping, the happier they are. Disaggregated analysis indicates that online shopping has greater positive impacts on the subjective well-being of lower-income residents (at household income tertile 1), relative to their higher-income counterparts (at household income tertiles 2–3). Our findings suggest that developing rural-targeted online shopping markets can improve the subjective well-being of rural residents and boost rural consumption upgrading.
Journal: Applied Economics
Pages: 4192-4206
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897513
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897513
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4192-4206




Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Author-Name: Fu-Wei Huang
Author-X-Name-First: Fu-Wei
Author-X-Name-Last: Huang
Title: A contingent claim model of life insurer-bank swap default pricing: strategic substitutes and complements
Abstract: 
 This paper develops a contingent claim framework to examine swap transactions between a life insurer and a bank that bilaterally price default risks. We show that the insurer (the protection buyer in the swap transaction market) regards the optimal bank loan rate as a strategic complement. In contrast, the bank (the protection seller) considers the optimal insurer guaranteed rate as a strategic substitute. Hedging conducted by the insurer enhances profits but hurts policyholder protection. Bank capital regulation harms policyholder protection. Insurer capital regulation leads to bank risk-taking. Capital regulations, as such, would jeopardize insurer-bank performance from a financial stability standpoint.
Journal: Applied Economics
Pages: 4166-4177
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897077
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897077
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4166-4177




Template-Type: ReDIF-Article 1.0
Author-Name: Na Liu
Author-X-Name-First: Na
Author-X-Name-Last: Liu
Author-Name: Zuoliang Ye
Author-X-Name-First: Zuoliang
Author-X-Name-Last: Ye
Title: Empirical research on the blockchain adoption – based on TAM
Abstract: 
 Among the modern digital technologies that are reshaping many aspects of our society, blockchain is one of the most innovative, and this cutting-edge technology has drawn a great deal of public attention. However, little research is available on the actual effect of trust, which is a key core attraction for the blockchain technology. Furthermore, few studies have investigated the relationship between trust and user acceptance. In this paper, we develop a research model based on the technology acceptance model (TAM) and the core features of blockchain technology, and we conduct an empirical study. We collect 254 questionnaires about blockchain applications and analyse the responses with SmartPLS3.0. The results show that constructs such as trust and information quality have positive effects on the users’ behavioural intentions, except in terms of output quality. The findings have both theoretical significance and empirical insights, which will be helpful for the further development of blockchain theory while guiding the operation of relevant enterprises.
Journal: Applied Economics
Pages: 4263-4275
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1898535
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1898535
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4263-4275




Template-Type: ReDIF-Article 1.0
Author-Name: Zhenlong Miao
Author-X-Name-First: Zhenlong
Author-X-Name-Last: Miao
Title: Digital economy value chain: concept, model structure, and mechanism
Abstract: 
 The paper breaks through the existing research on digital economy and value chain, puts forward to digital economy value chain (DEVC) for the first time, discusses the connotation, value activity composition, and value chain characteristics of the digital economy value chain. Digital Economy Value Chain is the innovation of the value chain driven by digital elements (data, digital technology, digital mode, etc.) and the integration of the digital economy and value chain. Its foothold in the digital elements and its essence is the chain organization of value creation activities of the digital economy. Every value-added link of the digital economy value chain can realize value creations. The flow direction of the value chain is the process of value creation and value transfer. At the same time, this study attempts to analyse the operation mechanism of the digital economy value chain. This paper analyzes the formation mechanism, transmission mechanism, and the working mechanism of the digital economy value chain, reveals the operation mechanism of the digital economy value chain, and constructs a complete theoretical framework of the digital economic value chain.
Journal: Applied Economics
Pages: 4342-4357
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899121
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899121
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4342-4357




Template-Type: ReDIF-Article 1.0
Author-Name: Tianyang Li
Author-X-Name-First: Tianyang
Author-X-Name-Last: Li
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Ming Men
Author-X-Name-First: Ming
Author-X-Name-Last: Men
Title: Size effect in China
Abstract: 
 This study seeks to explain the size effect in China. Our empirical results indicate that, after eliminating the smallest 30% of firms, the size premium is largely explained by the risk exposures of small firms to market and value factors, that cannot produce a unique alpha. Moreover, we find that the size premium is largest among high-quality and low-turnover stocks but becomes negligible after controlling for liquidity; the size effect is affected by how firm size is measured, and the price-based measure yields a more significant size premium than those yielded by fundamental-based measures; and strict IPO constraints result in shell values making up a large proportion of stock capitalization among small listed firms, and the shell value falsifies the measure of the size effect. Given that the registration system has been steadily promoted in the new STAR market, our results suggest that the shell values among stocks will decrease significantly, which has a long-term influence on the size effect in China.
Journal: Applied Economics
Pages: 4358-4370
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899122
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899122
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4358-4370




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolei Sun
Author-X-Name-First: Xiaolei
Author-X-Name-Last: Sun
Author-Name: Qianqian Feng
Author-X-Name-First: Qianqian
Author-X-Name-Last: Feng
Author-Name: Jianping Li
Author-X-Name-First: Jianping
Author-X-Name-Last: Li
Title: Understanding country risk assessment: a historical review
Abstract: 
 Country risk reflects a country’s overall risk status, and it has an extremely important impact on global investment and trade between countries. This study is conducted to examine country risk analysis and assessment models. The historical stages of country risk assessment are characterized, and the development and application of country risk analysis and assessment techniques are reviewed. Country risk assessment modelling techniques developed in two major frameworks: Multi-criteria decision-making framework based on macroeconomic fundamentals and asset pricing framework based on market information. Based on our analysis, we identify current trends and research gaps, as well as relevant future research directions.
Journal: Applied Economics
Pages: 4329-4341
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899120
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899120
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4329-4341




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaojun Shi
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Shi
Author-Name: Changyun Wang
Author-X-Name-First: Changyun
Author-X-Name-Last: Wang
Author-Name: Teng Zhong
Author-X-Name-First: Teng
Author-X-Name-Last: Zhong
Title: Can public medical insurance promote rural entrepreneurship? Evidence from China
Abstract: 
 Using China’s National Cooperative Medical Scheme (NCMS), a heavily subsided public medical insurance (PMI) scheme, aiming at covering all rural populations in China, as a quasi-natural experiment, we find that PMI unleashes entrepreneurship in the rural economy. This finding provides supporting evidence for Arrow’s risk-shifting theory and enriches the literature on the effect of PMI that has focused mainly on health impact and consumption smoothing. We also demonstrate that PMI increases entrepreneurial investments primarily through the channel of wealth effect resulting from reduced out-of-pocket medical expenses. Besides, the entrepreneurship cultivation effect of PMI is more pronounced among rural households that are wealthier, have fuller insurance coverage, or have younger heads.
Journal: Applied Economics
Pages: 4292-4309
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899118
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899118
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4292-4309




Template-Type: ReDIF-Article 1.0
Author-Name: W. David Allen
Author-X-Name-First: W. David
Author-X-Name-Last: Allen
Title: Crime, Universities and Campus Police
Abstract: 
 Crime motivates self-protection, such as undertaken quite visibly by individuals, households, and businesses. But we know much less about self-protection by public institutions, including schools, especially from an economic perspective. This paper examines how universities use campus police for that purpose. Conceptually, self-protection reduces vulnerability to crime but incurs costs whether a victimization happens or not; an actual crime further imposes a victimization cost. The agent (university administration) determines the equilibrium level of self-protection within this analytical environment. Empirical analysis of a two-year panel of U.S. universities reveals increased campus police use given larger external and internal crime threats and in the presence of better students and faculty. Larceny appears particularly influential, but the violent crimes of rape and aggravated assault do not. Extended analysis reveals that schools plagued by burglary and vehicle theft on campus utilize significantly more ancillary, procedural protections such as night-time police escorts. Larger-acreage, larger-enrolment, and religious-affiliated universities exhibit the most ongoing vulnerability to crime, showing significantly lesser campus police use even when facing higher internal crime threats.
Journal: Applied Economics
Pages: 4276-4291
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899117
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899117
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4276-4291




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Sensoy
Author-X-Name-First: Ahmet
Author-X-Name-Last: Sensoy
Author-Name: Thiago Christiano Silva
Author-X-Name-First: Thiago Christiano
Author-X-Name-Last: Silva
Author-Name: Shaen Corbet
Author-X-Name-First: Shaen
Author-X-Name-Last: Corbet
Author-Name: Benjamin Miranda Tabak
Author-X-Name-First: Benjamin Miranda
Author-X-Name-Last: Tabak
Title: High-frequency return and volatility spillovers among cryptocurrencies
Abstract: 
 We examine the high-frequency return and volatility of major cryptocurrencies and reveal that spillovers among them exist. Our analysis shows that return and volatility clustering structures are distinct among different cryptocurrencies, suggesting that return and volatility might have different spillover patterns. Further investigation via minimal spanning trees points out that BTC, LTC and ETH are the most relevant cryptocurrencies in general, serving as connection hubs for linking many other cryptocurrencies. However, their role is challenged lately, potentially due to the increased usage of other cryptocurrencies in time.
Journal: Applied Economics
Pages: 4310-4328
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899119
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899119
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4310-4328




Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M. Blau
Author-X-Name-First: Benjamin M.
Author-X-Name-Last: Blau
Author-Name: Todd G. Griffith
Author-X-Name-First: Todd G.
Author-X-Name-Last: Griffith
Author-Name: Ryan J. Whitby
Author-X-Name-First: Ryan J.
Author-X-Name-Last: Whitby
Title: Income inequality and the volatility of stock prices
Abstract: 
 We examine the link between income inequality and the price volatility of American Depository Receipts (ADRs). Using a large sample of ADRs across 37 countries, we find that income inequality is negatively associated with ADR volatility. To draw stronger causal inferences, we use the implementation of the French ‘Millionaire Tax’ as a negative shock to the perceived level of income inequality in France. In difference-in-difference tests, we find that volatility for French ADRs vis-à-vis non-French ADRs increased by at least 4.85 percentage points after the tax change. Therefore, instead of creating political and social uncertainty, income inequality has a stabilizing influence on the volatility of stock prices, which we argue is a result of higher-skilled human capital.
Journal: Applied Economics
Pages: 4404-4416
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904110
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904110
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4404-4416




Template-Type: ReDIF-Article 1.0
Author-Name: Yaniv Reingewertz
Author-X-Name-First: Yaniv
Author-X-Name-Last: Reingewertz
Author-Name: Adi Shany
Author-X-Name-First: Adi
Author-X-Name-Last: Shany
Title: Education resources and student performance: evidence from Arab municipalities in Israel
Abstract: 
 This paper is offering a new identification strategy in order to estimate the effect of education resources on students’ achievements at the municipal level. We use the appointment of an external accountant to financially distressed municipalities in Israel as an instrumental variable for independent education expenditures, and control for selection bias. We find that the decline in independent education expenditures per capita in Arab municipalities did not affect the share of matriculation certification recipients. This result suggests that changes in municipal education resources might not affect students’ achievements, at least in less-developed municipalities.
Journal: Applied Economics
Pages: 4386-4403
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904109
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904109
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4386-4403




Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Oddo
Author-X-Name-First: Luigi
Author-X-Name-Last: Oddo
Author-Name: Mile Bosnjak
Author-X-Name-First: Mile
Author-X-Name-Last: Bosnjak
Title: A comparative analysis of the monetary policy transmission channels in the U.S: a wavelet-based approach
Abstract: 
 This paper evaluates competing approaches to assess the effectiveness of transmission channels for the U.S. monetary policy from 1°Q 1995 to 3°Q 2019. While evaluating the competing approaches, the paper follows wavelet coherence approach providing results in time and frequency domain. The results show how money and credit channels work quite well during low volatile periods generally, whereas they suggest that these channels are less effective during periods of financial turmoil and very low interest rate. However, investment-based channels and the bank-lending channel revisited version show some effects also during periods of instability. In more detail, investment-based channels and the bank-lending channel revisited appear to be the most effective monetary policy transmission mechanisms, while the traditional banking-lending channel seems effective only in low volatile periods. Finally, the results for consumption-based channels and international trade-based channels show the least effectiveness.
Journal: Applied Economics
Pages: 4448-4463
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904113
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904113
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4448-4463




Template-Type: ReDIF-Article 1.0
Author-Name: Javier Scavia
Author-X-Name-First: Javier
Author-X-Name-Last: Scavia
Author-Name: Pedro Fernández De La Reguera
Author-X-Name-First: Pedro
Author-X-Name-Last: Fernández De La Reguera
Author-Name: Josephine E. Olson
Author-X-Name-First: Josephine E.
Author-X-Name-Last: Olson
Author-Name: Nahuel Pezoa
Author-X-Name-First: Nahuel
Author-X-Name-Last: Pezoa
Author-Name: Werner Kristjanpoller
Author-X-Name-First: Werner
Author-X-Name-Last: Kristjanpoller
Title: The impact of cultural trade on economic growth
Abstract: 
 The relationship between international trade and economic growth has been an area of interest to many researchers in recent years. Although the literature is broad with respect to this topic, few studies have focused on the particular effect of cultural exports and imports on economic growth. This study addresses the relationship between trade in cultural goods and economic growth for 31 countries in Europe for the period 2004–2017, through a vector error correction model (VECM). A panel Granger causality test and a system generalized method of moments (GMM) are also utilized in this study. Cultural trade is characterized by exports and imports of cultural goods. The results indicate there is a long-run equilibrium relationship between gross domestic product, total exports, capital formation and labour force. Cultural exports and imports have a positive effect on GDP in the long run. In the short run, there is Granger causality of cultural imports on economic growth, total exports, total imports and capital formation.
Journal: Applied Economics
Pages: 4436-4447
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904112
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904112
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4436-4447




Template-Type: ReDIF-Article 1.0
Author-Name: Ranpati Dewage Thilini Sumudu Kumari
Author-X-Name-First: Ranpati Dewage Thilini Sumudu
Author-X-Name-Last: Kumari
Author-Name: Sam Hak Kan Tang
Author-X-Name-First: Sam Hak Kan
Author-X-Name-Last: Tang
Author-Name: Shawn Xiaoguang Chen
Author-X-Name-First: Shawn Xiaoguang
Author-X-Name-Last: Chen
Author-Name: Bei Li
Author-X-Name-First: Bei
Author-X-Name-Last: Li
Title: Misallocation and productivity slowdown over two decades: evidence from Sri Lanka
Abstract: 
 We investigate the effect of misallocation induced by firm-specific distortions on aggregate productivity and long-run TFP growth. Using a new firm-level dataset from Sri Lanka’s manufacturing surveys spanning over two decades and a standard model of misallocation, we show that when misallocation is eliminated, the aggregate manufacturing productivity could be boosted by 102% during 1994–2015. In addition, we find that the allocative efficiency exhibits a declining trend over time, and this rising misallocation could explain 55% of the manufacturing TFP growth slowdown in Sri Lanka. We further explore the underlying causes of the rising misallocation by quantitatively analysing the contributions of different types of firms and distortions in different markets. In the end, we qualitatively discuss potential fundamental sources in institutions and policies. Our results reveal that misallocation can be a mechanism underlying the growth slowdown of many emerging economies a decade after the liberalization reform since the late 1970s.
Journal: Applied Economics
Pages: 4417-4435
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904111
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904111
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4417-4435




Template-Type: ReDIF-Article 1.0
Author-Name: Xin Chen
Author-X-Name-First: Xin
Author-X-Name-Last: Chen
Author-Name: He Xiao
Author-X-Name-First: He
Author-X-Name-Last: Xiao
Author-Name: Yifei Zhang
Author-X-Name-First: Yifei
Author-X-Name-Last: Zhang
Title: To what extent did independent directors help firms’ recovery during the COVID-19 pandemic? Evidence from China
Abstract: 
 To what extent did independent directors help firms’ recovery during the COVID-19 pandemic? In this paper, we answer this question by investigating whether independent directors contribute to Chinese listed firms’ operation income growth during the first and second quarters of the year 2020. By employing a triple difference-in-differences (DDD) estimation strategy, we show that firms located in more pandemic-affected regions experienced a more pronounced operating recovery if they receive more independent directors’ opinions and have fewer female and busy directors. The possible reason is that those female and busy directors were likely to be distracted during the pandemic outbreak. We also provide evidence that firms paying higher remunerations to independent directors tend to recover quicker. Moreover, independent directors’ age and education level positively contribute to firms’ recovery. Our work is among the first to study independent directors’ role in shaping firms’ operation performance under the COVID-19.
Journal: Applied Economics
Pages: 4464-4480
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904114
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904114
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4464-4480




Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Han Liu
Author-X-Name-First: Wei-Han
Author-X-Name-Last: Liu
Author-Name: Jow-Ran Chang
Author-X-Name-First: Jow-Ran
Author-X-Name-Last: Chang
Title: Revisiting and refining the comparison of conventional and islamic markets’ performance
Abstract: 
 With a refined version of almost stochastic dominance (ASD), we explore the performance-comparison issues between traditional markets and Islamic markets in terms of industry and business condition. The empirical outcomes indicate that Shariah compliance makes both the consumer services and finance industries in Islamic markets outshine other industries and outperform the corresponding industries in traditional markets. Except for the period before the Global Financial Crisis (GFC) in 2008, Islamic markets prevail over traditional markets in bearish (2007–2012) and persistently bullish (2013–2017) periods. These contrasts indicate that Islamic markets have emerged as a superior investment alternative since the GFC.
Journal: Applied Economics
Pages: 4371-4385
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1900533
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1900533
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4371-4385




Template-Type: ReDIF-Article 1.0
Author-Name: Louinord Voltaire
Author-X-Name-First: Louinord
Author-X-Name-Last: Voltaire
Title: Respondent direct experience and contingent willingness to pay for new commodities: a switching endogenous interval regression analysis
Abstract: 
 Most environmental economists argue that direct experience with the good being valuated, or with similar goods, is a precondition for providing valid willingness to pay (WTP) responses to contingent valuation questions. Two questions are posed in this article. The first is whether previous use experience of a resource (Séné nature reserve) similar to that being valuated (future nature reserves) and located in the same geographical area (Gulf of Morbihan) impacts on WTP. The second is whether accounting for the endogeneity of direct experience matters in the estimation of WTP. We find that respondents who have not experienced the Séné nature reserve provide value estimates that are statistically comparable to that of respondents who have experienced it. Our assumption is that respondents have acquired sufficient and adequate experience of future nature reserves from the questionnaire that experience obtained by experiencing the Séné nature reserve was not necessary for making a valid value formulation. Hence, aggregation of WTP estimates to obtain a total valuation of the future nature reserves is reasonable over the full target population. In addition, our results show that direct experience is endogenously determined; but controlling for the endogeneity has a marginal effect on WTP estimates.
Journal: Applied Economics
Pages: 2235-2249
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2014.1002890
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002890
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2235-2249




Template-Type: ReDIF-Article 1.0
Author-Name: Lik Fong
Author-X-Name-First: Lik
Author-X-Name-Last: Fong
Author-Name: Chulwoo Han
Author-X-Name-First: Chulwoo
Author-X-Name-Last: Han
Title: Impacts of derivative markets on spot market volatility and their persistence
Abstract: 
 In this article, we investigate the impacts of futures and options markets on the volatility of the underlying market. Unlike earlier studies, the focus is on their persistence over time. Tests on the Hang Seng index yield several interesting results that often contrast with previous findings. Empirical results suggest that the quality of new information generated by derivative trading determines the impacts on the spot market volatility. The futures market provides new, material information reducing spot market volatility. The Options market, on the other hand, generates noisy information and distorts price, which is followed by an increase in volatility and a decrease in its sensitivity to price change. While the impact of futures persists, that of options mostly disappears as the market matures. Our conjecture is that the futures market is mainly driven by informed, experienced participants, while the options market attracts new, inexperienced investors.
Journal: Applied Economics
Pages: 2250-2258
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005813
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005813
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2250-2258




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Stephen M. Miller
Author-X-Name-First: Stephen M.
Author-X-Name-Last: Miller
Title: The out-of-sample forecasting performance of nonlinear models of regional housing prices in the US
Abstract: 
 This article provides out-of-sample forecasts of linear and nonlinear models of US and four Census subregions’ housing prices. The forecasts include the traditional point forecasts, but also include interval and density forecasts, of the housing price distributions. The nonlinear smooth-transition autoregressive model outperforms the linear autoregressive model in point forecasts at longer horizons, but the linear autoregressive and nonlinear smooth-transition autoregressive models perform equally at short horizons. In addition, we generally do not find major differences in performance for the interval and density forecasts between the linear and nonlinear models. Finally, in a dynamic 25-step ex-ante and interval forecasting design, we, once again, do not find major differences between the linear and nonlinear models. In sum, we conclude that when forecasting regional housing prices in the United States, generally the additional costs associated with nonlinear forecasts outweigh the benefits for forecasts only a few months into the future.
Journal: Applied Economics
Pages: 2259-2277
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005814
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005814
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2259-2277




Template-Type: ReDIF-Article 1.0
Author-Name: Aniruddha Mitra
Author-X-Name-First: Aniruddha
Author-X-Name-Last: Mitra
Author-Name: James T. Bang
Author-X-Name-First: James T.
Author-X-Name-Last: Bang
Author-Name: Arnab Biswas
Author-X-Name-First: Arnab
Author-X-Name-Last: Biswas
Title: Media freedom and gender equality: a cross-national instrumental variable quantile analysis
Abstract: 
 We investigate the impact of media freedom on gender equality in education for a sample of 63 countries taken over the period 1995–2004. Our analysis is motivated by the idea that the impact of media freedom on gender equality may differ over the conditional distribution of the response variable. Using instrumental variable quantile regression to control for endogeneity in per capita income, we find that greater freedom of the media improves gender equality only in the 0.25 and 0.50 quantiles of the conditional distribution. Countries with the greatest disparities in gender outcomes experience no significant impact of media freedom.
Journal: Applied Economics
Pages: 2278-2292
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005822
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005822
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2278-2292




Template-Type: ReDIF-Article 1.0
Author-Name: Gow-Cheng Huang
Author-X-Name-First: Gow-Cheng
Author-X-Name-Last: Huang
Author-Name: Kartono Liano
Author-X-Name-First: Kartono
Author-X-Name-Last: Liano
Author-Name: Ming-Shiun Pan
Author-X-Name-First: Ming-Shiun
Author-X-Name-Last: Pan
Title: Investor opinion divergence and post-repurchase announcement stock price drift
Abstract: 
 This study examines whether investor opinion divergence is a significant determinant of post-repurchase abnormal returns. We examine the effect using abnormal trading turnover (ATO) ratio as a proxy for investor opinion divergence. While the OLS regression results show that investor opinion divergence is not related to post-repurchase performance, the quantile regression results show that the effect of investor opinion divergence on post-repurchase performance is not homogeneous across various quantile levels of post-repurchase performance. We find a positive relation between ATO ratio and post-repurchase performance for firms with lower-to-middle performance groups. For firms with middle-to-higher post-repurchase performance, pre-repurchase stock undervaluation is a key determinant of the post-repurchase performance.
Journal: Applied Economics
Pages: 2293-2306
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005823
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005823
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2293-2306




Template-Type: ReDIF-Article 1.0
Author-Name: Satoshi Shimizutani
Author-X-Name-First: Satoshi
Author-X-Name-Last: Shimizutani
Author-Name: Hiroyuki Yamada
Author-X-Name-First: Hiroyuki
Author-X-Name-Last: Yamada
Author-Name: Haruko Noguchi
Author-X-Name-First: Haruko
Author-X-Name-Last: Noguchi
Author-Name: Yuichiro Masuda
Author-X-Name-First: Yuichiro
Author-X-Name-Last: Masuda
Author-Name: Masafumi Kuzuya
Author-X-Name-First: Masafumi
Author-X-Name-Last: Kuzuya
Title: Exploring the causal relationship between hospital length of stay and re-hospitalization among Japanese AMI patients
Abstract: 
 We explore the causal relationship between hospital length of stay (LOS) and re-hospitalization for Acute Myocardial Infarction (AMI) patients in Japan, where the average LOS is the longest among OECD countries. Using chart-based data, we address the endogeneity between LOS and re-hospitalization probability by using an exogenous variation based on Rokuyo (the six basic labels allocated to each day), which is found to be irrelevant to admission day but relevant to discharge day. While we do find a significant and positive association between LOS and re-hospitalization probability in the OLS estimation, we do not find a significant relationship once LOS is instrumented by Rokuyo in various instrumental variable estimations. This implies that additional stay that was induced owing to patient’s choice of preferred Rokuyo at discharge has no effect on re-hospitalization probability.
Journal: Applied Economics
Pages: 2307-2325
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005824
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005824
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2307-2325




Template-Type: ReDIF-Article 1.0
Author-Name: Louis de Grange
Author-X-Name-First: Louis
Author-X-Name-Last: de Grange
Author-Name: Felipe González
Author-X-Name-First: Felipe
Author-X-Name-Last: González
Author-Name: Rodrigo Troncoso
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Troncoso
Title: Estimates of price elasticity of demand for urban freeway use with high-frequency control variables: the case of Santiago, Chile
Abstract: 
 Estimates are presented of toll and fuel price elasticities of demand for urban freeway use in Santiago, Chile. High-frequency toll and vehicle data were collected from four urban freeways for different route segments and times of day. Estimation was performed using log-linear regression models whose explanatory variables were tolls, fuel prices, city traffic levels and sets of dichotomous variables to control for daily, weekly and monthly seasonality. City traffic is a high frequency control of the activity level of the city. The elasticities to changes in tolls and fuel were all low in absolute value. The toll elasticities were below 0.05 for two freeways and 0.16 for the third, while for the fourth, which had more alternative routes, it was 0.47. The fuel price elasticities were also heterogeneous, with values of approximately 0.45 for two freeways and 0.21 for the third whereas for the fourth, which had the fewest alternatives, it was 0.07.
Journal: Applied Economics
Pages: 2326-2337
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005825
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005825
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2326-2337




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: 318-318
Issue: 3
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.982953
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982953
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:318-318




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: i-i
Issue: 38
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1040259
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1040259
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:i-i




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: 408-413
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.987479
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987479
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:408-413




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: ii-ii
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.984483
File-URL: http://hdl.handle.net/10.1080/00036846.2014.984483
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:ii-ii




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: iii-iii
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.987525
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987525
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:iii-iii




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: 1-1
Issue: 50
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1061233
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061233
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:1-1




Template-Type: ReDIF-Article 1.0
Author-Name: M. M. Fonseka
Author-X-Name-First: M. M.
Author-X-Name-Last: Fonseka
Author-Name: Xing Yang
Author-X-Name-First: Xing
Author-X-Name-Last: Yang
Author-Name: Gao-Liang Tian
Author-X-Name-First: Gao-Liang
Author-X-Name-Last: Tian
Author-Name: Sisira R. N. Colombage
Author-X-Name-First: Sisira R. N.
Author-X-Name-Last: Colombage
Title: Political connections, ownership structure and private-equity placement decision: evidence from Chinese listed firms
Abstract: 
 In contrast with many other countries, Chinese listed firms must obtain approval to make private-equity placements (PEPs) from the Chinese Security Regulatory Commission (CSRC), a state bureau that regulates capital market financing. We analyse the role of political connection (PC) and ownership structures when accessing private equity (PE) market, while investigating the mechanisms through which political ties operate within the regulatory process of PEPs. The findings suggest that PCs do not contribute to the firm’s decision to apply for PEPs, but firms with state-ownership demonstrate a higher propensity to apply for PEPs. PC and state-ownership appear to help firms to obtain approval from the CSRC, and these firms are treated more favourably than their rivals without such connections. Politically connected firms spend less time in managing bureaucracy, but PC and state-ownership negatively affect proceeds from the PE market in China. Firms with politically connected directors with professional business backgrounds tend to spend less time managing the CSRC, and these professionals positively affect proceeds from the PE market in China. This study provides important insights for policy-makers, investors, PE issuing firms and security market regulators.
Journal: Applied Economics
Pages: 5648-5666
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054073
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054073
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5648-5666




Template-Type: ReDIF-Article 1.0
Author-Name: Satis Devkota
Author-X-Name-First: Satis
Author-X-Name-Last: Devkota
Author-Name: Mukti Upadhyay
Author-X-Name-First: Mukti
Author-X-Name-Last: Upadhyay
Title: How do income and education affect health inequality: evidence from four developing countries
Abstract: 
 Using household survey data from four countries ‒ Albania, Nepal, Tajikistan and Tanzania ‒ this article calculates income-related inequality in health care utilization. We measure health disparity separately for generally and chronically ill individuals by constructing two models: one for the probability of a visit to a physician and another for the number of visits. Following model-based measurements, we decompose inequality into two major parts: one accounted for by identity-related factors and another by socioeconomic and other factors such as education, geography and distance to a clinic. We propose a new method to quantify the effect of changes in income and education on health disparity. One of our important findings suggests that health disparity is pro-rich in all our sample countries. The pro-rich disparity is prevalent among generally ill as well as chronically ill patients, in both visit probability and visit frequency models. Health inequality seems primarily driven by income differences followed by nonidentity factors. Further, the principle of equal treatment for equal need is not fulfilled in any of our countries. Among policy implications, increasing average income and education in a way that also reduces disparity in income and education, respectively, will substantially shrink inequality in health care utilization.
Journal: Applied Economics
Pages: 5583-5599
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054069
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054069
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5583-5599




Template-Type: ReDIF-Article 1.0
Author-Name: Yanjie Zhu
Author-X-Name-First: Yanjie
Author-X-Name-Last: Zhu
Author-Name: Xiaojing Ren
Author-X-Name-First: Xiaojing
Author-X-Name-Last: Ren
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Author-Name: Hengyun Ma
Author-X-Name-First: Hengyun
Author-X-Name-Last: Ma
Title: Why is there controversy regarding China’s staple grain food market integration? Evidence and implication from price convergent club analysis
Abstract: 
 There remains ongoing controversy regarding the degree to which Chinese food markets are integrated. Some economists conclude that China’s grain economy is well integrated, while others argue that China’s gradual reforms have led to fragmented domestic markets while others conclude that previous studies have produced mixed results. To reconcile the debate, this article models and analyses the behaviour of China’s food grain retail markets by testing for the existence of the convergent price clustering clubs using appropriate econometric methods and price data over 1997–2010. The article finds evidence as to why the controversy remains by identifying a number of small divergent price clustering clubs where it is hard to conclude that China’s food grain markets are fully integrated. However, given that large convergent clustering clubs were also identified, it can be concluded that the degree to which Chinese grain food retail markets are integrated is ‘high’. This finding is important for those who plan to investigate the economic behaviour of grain production under the assumption of a pure, fully integrated, food market economy in China.
Journal: Applied Economics
Pages: 5634-5647
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054072
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054072
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5634-5647




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Renewable energy consumption and unemployment: evidence from a sample of 80 countries and nonlinear estimates
Abstract: 
 This article contributes to the discussion on the dynamic nexus of renewable energy consumption and unemployment by incorporating nonlinear cointegration and causality analysis. Using a sample of 80 countries spanning the period 1990–2013 and the advanced generation of unit root, cointegration and nonlinear Granger causality methodological approaches in panel data, we obtain mixed results about the impact of renewable energy consumption on unemployment. Although the total findings document a positive impact of renewable energy consumption on unemployment, disaggregated data across specific regions, such as Asia and Latin America, highlight the favourable effect on unemployment, implying that the effect of renewable energy consumption on jobs creation depends on the cost of adopting renewable energy technologies and energy efficiencies that seem to vary across the regions under investigation.
Journal: Applied Economics
Pages: 5614-5633
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054071
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054071
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5614-5633




Template-Type: ReDIF-Article 1.0
Author-Name: Akhand Akhtar Hossain
Author-X-Name-First: Akhand Akhtar
Author-X-Name-Last: Hossain
Title: Inflation volatility, economic growth and monetary policy in Bangladesh
Abstract: 
 This article provides an overview of the trends and movements of CPI-inflation in Bangladesh since the early 1950s and examines the key issues in rule-based monetary policy for price stability, implying low and stable inflation, in this country. Under a fixed exchange rate system, inflation in Bangladesh was moderately high and volatile during the 1950s and 1960s. Since the country’s independence from Pakistan in 1971, inflation in Bangladesh has remained moderately high on average and highly volatile and persistent under a fixed-pegged exchange rate system or under a managed floating system since 2003. Using data from the early 1970s or earlier depending on data availability, the article undertakes both Granger-causality and the structural vector autoregression (SVAR) analysis with two models. The first model is comprised of such variables as inflation, the real interest rate, the real exchange rate and output growth, and the second model is comprised of the volatilities of money growth, real output growth and inflation. Then, based on the empirical findings, the article concludes that a rule-based monetary policy, namely monetary targeting or inflation targeting, remains appropriate for Bangladesh provided that it adopts a more flexible, if not freely floating, exchange rate system. The article suggests that the use of monetary policy to achieve multiple objectives under a fixed-pegged exchange rate system creates a time-inconsistency problem, reduces monetary policy credibility and makes it (monetary policy) ineffective in lowering inflation and its volatility. Low credibility of monetary policy in particular raises inflation persistence. Within the present monetary-policy framework in Bangladesh, the article illustrates how the fixed-pegged exchange rate system has generated money growth volatility in the presence of large-scale inflows of overseas workers’ remittances and readymade garments export earnings. This does not seem to be a concern of the central bank of Bangladesh (Bangladesh Bank); rather, it (Bangladesh Bank) pursues monetary-base targeting to keep inflation low and stable after considering economic growth. The consequent diminishing credibility of monetary policy has kept inflation volatile and persistent, which has adversely affected economic growth.
Journal: Applied Economics
Pages: 5667-5688
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054074
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054074
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5667-5688




Template-Type: ReDIF-Article 1.0
Author-Name: James E. Payne
Author-X-Name-First: James E.
Author-X-Name-Last: Payne
Author-Name: Stephanie Anderson
Author-X-Name-First: Stephanie
Author-X-Name-Last: Anderson
Author-Name: Junsoo Lee
Author-X-Name-First: Junsoo
Author-X-Name-Last: Lee
Author-Name: Myeong Hyeon Cho
Author-X-Name-First: Myeong Hyeon
Author-X-Name-Last: Cho
Title: Do per capita health care expenditures converge among OECD countries? Evidence from unit root tests with level and trend-shifts
Abstract: 
 This study examines the stochastic conditional convergence of per capita health care expenditures (PCHCE) among 19 OECD countries over the period 1972–2008. Specifically, newly developed LM and RALS-LM unit root tests with allowance for two endogenously determined structural breaks are employed. The results indicate support for PCHCE convergence among most OECD countries. The results are stronger in more general tests that control for two breaks and nonnormal errors. Panel unit root tests provide additional support for the stochastic convergence of PCHCE.
Journal: Applied Economics
Pages: 5600-5613
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054070
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054070
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5600-5613




Template-Type: ReDIF-Article 1.0
Author-Name: Jinghua Lei
Author-X-Name-First: Jinghua
Author-X-Name-Last: Lei
Author-Name: Kai Liu
Author-X-Name-First: Kai
Author-X-Name-Last: Liu
Title: US money supply and global business cycles: 1979–2009
Abstract: 
 This article investigates the effects of the US money supply shock on global business cycles by employing a global vector autoregressive model containing 26 economies over the period from 1979Q2 to 2009Q4. The US money supply is incorporated as an endogenous variable for the US and a global factor for other economies. When a positive US money supply shock hits the global economy, developed economies (such as the US, Euro area and the UK) will have neither real output decline nor inflation pressure, while China and some other developing countries are going to have a significant decline of real GDP. The international spillover of the liquidity effect exists. The global effects of quantitative easing are discussed as well.
Journal: Applied Economics
Pages: 5689-5705
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054075
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054075
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5689-5705




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: Applied Economics
Pages: ebi-ebi
Issue: 60
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1109950
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109950
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:ebi-ebi




Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Olaolu Richard Olayeni
Author-X-Name-First: Olaolu Richard
Author-X-Name-Last: Olayeni
Title: Renewable and nonrenewable energy production and economic growth in sub-Saharan Africa: a hidden cointegration analysis
Abstract: 
 The objective of this article is to investigate the hypothesis of asymmetric effects between economic growth and renewable and nonrenewable energy production. To this end, both the linear cointegration and the hidden cointegration methodology are employed, with the latter allowing a straightforward delimitation of the data in an economically sensible way. We test for the presence of hidden cointegration across 12 sub-Saharan African countries spanning the period 1971–2011. The empirical results confirm the growth hypothesis for a subset of countries, suggesting that their growth could be adversely affected by conservation policies, while for a second subgroup of countries they confirm the conservation hypothesis, indicating that conservation policies could enhance the growth process in these countries. The differentiation of the results could be captured entirely by the linear approach, indicating that the lack of cointegration between renewable energy production and economic growth found in previous studies may be due to failures to properly delimit the nonlinearity property in the data.
Journal: Applied Economics
Pages: 861-882
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982855
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982855
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:861-882




Template-Type: ReDIF-Article 1.0
Author-Name: Johanna Catherine Maclean
Author-X-Name-First: Johanna Catherine
Author-X-Name-Last: Maclean
Author-Name: Douglas Webber
Author-X-Name-First: Douglas
Author-X-Name-Last: Webber
Author-Name: Michael T. French
Author-X-Name-First: Michael T.
Author-X-Name-Last: French
Title: Workplace problems, mental health and substance use
Abstract: 
 Little is known about how workplace problems may influence diagnosable mental health and substance use (MHSU) disorders. We examine the associations between three common workplace problems (experiencing problems with co-workers, job changes and perceived financial strain) and three MHSU disorders (mood, anxiety and substance abuse/dependence). The analysis utilizes longitudinal data on a sample of working-age adults from the National Epidemiological Survey on Alcohol and Related Conditions. These data are well suited for our research objective as the survey was specifically designed to study MHSU disorders. Results show that experiencing these workplace problems is associated with an increased risk for mental health disorders, but not substance use disorders. Importantly, various robustness checks and sensitivity analyses demonstrate that our findings cannot be not fully explained by omitted variables, reverse causality or sample attrition.
Journal: Applied Economics
Pages: 883-905
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982856
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982856
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:883-905




Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Peter Wanke
Author-X-Name-First: Peter
Author-X-Name-Last: Wanke
Author-Name: Otávio Figueiredo
Author-X-Name-First: Otávio
Author-X-Name-Last: Figueiredo
Title: The Brazilian Soccer Championship: an efficiency analysis
Abstract: 
 This article analyses the top Brazilian football league from 2003 to 2011 by estimating a cost function and using a stochastic frontier model. Among the covariates, the number of fans per club and club remoteness is taken into account. The Brazilian clubs are then ranked according to their technical efficiency during the 2000–2011 period. Based on the results, the policy implication is presented, and the economic implications arising from the study are also considered.
Journal: Applied Economics
Pages: 906-915
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982857
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982857
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:906-915




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Sérgio Vasconcelos
Author-X-Name-First: Paulo Sérgio
Author-X-Name-Last: Vasconcelos
Author-Name: Lucio Guido Tapia Carpio
Author-X-Name-First: Lucio Guido Tapia
Author-X-Name-Last: Carpio
Title: Estimating the economic costs of electricity deficit using input–output analysis: the case of Brazil
Abstract: 
 The objective of this article is to present a methodology to estimate the marginal cost of electric energy deficit in the long-term using input–output (I–O) analysis. We obtain a deficit marginal cost (DMC) curve that is not limited to a small number of levels, such as the curve used currently in Brazil, which is limited to four levels. The marginal cost of deficit is an important exogenous parameter used in the model’s chain to calculate the operation’s marginal cost and short-term market pricing. The electric energy deficit is a temporary lack of continuity in meeting demand, which is usually predictable and involves prior notice to the consumer. The cause of this deficit may be a lack of investment and/or low water inflows that impact the production of hydroelectric power plants. In this study, the marginal cost of the deficit is obtained from restrictions on the provision of electricity for productive sectors and by calculating the corresponding impact on the gross domestic product. The proposed methodology can be used with data from the I–O matrix of any country to estimate its marginal cost of electric energy deficit.
Journal: Applied Economics
Pages: 916-927
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982858
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982858
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:916-927




Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Norman
Author-X-Name-First: Stephen
Author-X-Name-Last: Norman
Author-Name: Douglas Wills
Author-X-Name-First: Douglas
Author-X-Name-Last: Wills
Title: Nonlinear integration of London and Amsterdam stock markets in the 1700s
Abstract: 
 The financial markets in London and Amsterdam were some of the first to develop. Using threshold autoregressive models, we use data on two commonly traded stocks in these cities to show that the joint behaviour of the prices is consistent with the theory of arbitrage in the presence of transportation costs. The results suggest that prices converged more quickly as the price difference between the two markets increased. We also show that the threshold estimates are consistent between assets and across time. These results provide some of the earliest evidence of nonlinear mean reversion in asset prices in geographically separate financial markets.
Journal: Applied Economics
Pages: 928-939
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.985369
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985369
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:928-939




Template-Type: ReDIF-Article 1.0
Author-Name: Jin Suk Park
Author-X-Name-First: Jin Suk
Author-X-Name-Last: Park
Title: The duration analysis of structural breaks: is stability destabilizing?
Abstract: 
 This article investigates how the duration of a regime (i.e., the length of stability) affects the likelihood of a permanent structural break by devising the duration dependence in structural break method, which combines a structural break test and a duration dependence test. First, the locations of structural breaks are identified by Bai and Perron’s (1998) method. Then, it is estimated how a hazard rate changes in duration between structural breaks by parametric duration analysis using the Weibull and the log-logistic hazard functions.This study reveals the evidence of positive duration dependence, that is, stability is destabilizing, in 13 out of 27 international stock indices and the pooled data. In other words, as one regime continues over time with unchanged parameter values, a new structural break is more likely to occur. This method discloses a lower degree of duration dependence than the duration-dependence Markov-switching model (Durland and McCurdy, 1994) that considers temporary switches between a limited number of regimes. Also, some new patterns are emerged, e.g., more predominant positive duration dependence in bear markets, the secondary stock exchanges of a country and developing countries.
Journal: Applied Economics
Pages: 940-954
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.985370
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:940-954




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Zhang
Author-X-Name-First: Hong
Author-X-Name-Last: Zhang
Author-Name: Qingcheng Zeng
Author-X-Name-First: Qingcheng
Author-X-Name-Last: Zeng
Title: A study of the relationships between the time charter and spot freight rates
Abstract: 
 A time charter contract is a shipping contract that allows for freight rate risk avoidance and hedging. Defining the relationship between time charter and spot freight rates will illuminate the fluctuation mechanism of the spot freight market. In this article, three types of dry bulk ships – Capsize, Panamax and Supramax – are chosen to investigate the relationship between time charter and spot freight rates and to analyse the price discovery function of time charter contracts. A vector error correction model is developed, and an impulse response function is used to analyse the influence of time charter rates on spot freight rates. Empirical studies indicate that there are two-way lead–lag relationships between the time charter and spot freight rates and that a time charter contract has a price discovery function. Smaller ship sizes and longer durations lead to a stronger price discovery function.
Journal: Applied Economics
Pages: 955-965
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.985371
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985371
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:955-965




Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Lin
Author-X-Name-First: Qiang
Author-X-Name-Last: Lin
Author-Name: Yue Wang
Author-X-Name-First: Yue
Author-X-Name-Last: Wang
Title: Working capital management, the market environment and corporate performance: evidence from China
Abstract: 
 The purpose of this paper is to study the impact of working capital management (WCM) and the market environment (ME) on corporate performance in the context of China’s economy with firms classified by size. All A-share listed nonfinancial enterprises from 2008 to 2019 are included in the sample, and a two-way fixed effects regression model is applied. WCM is measured by the cash conversion cycle (CCC), and profitability is measured by ROA. ME is measured by the government-market relationship (GF) and the development of the non-state-owned economy (Non-SE). First, the research finds that CCC is negatively correlated with corporate performance and that firm size has a regulatory impact on this relationship. Second, the positive relationship between Non-SE and profitability is significant for large firms but not for SMEs. Third, GF is negatively correlated with profitability for enterprises of all sizes, which is contrary to the expected results.This paper is the first to combine the three factors of firm size, WCM and ME to discuss their impact on corporate performance. The results offer important implications for enterprise managers to improve WCM and to seize opportunities in the development of non-state-owned economy.
Journal: Applied Economics
Pages: 4505-4516
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904120
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904120
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4505-4516




Template-Type: ReDIF-Article 1.0
Author-Name: Matěj Bělín
Author-X-Name-First: Matěj
Author-X-Name-Last: Bělín
Author-Name: Jan Hanousek
Author-X-Name-First: Jan
Author-X-Name-Last: Hanousek
Title: SFA robustness to violated distributional assumptions: theory, simulations and empirical evidence
Abstract: 
 The well-known biases caused by taking the logarithm of a heteroskedastic dependent variable are a potential threat in stochastic frontier analyses (SFA), which are often estimated in log-linear form. This paper shows that while these biases can indeed be substantial, they do not affect the identification of best and worst performing firms, which is often more important than parameters of the frontier function. The efficiency ranks remain correctly identified except for special cases which are easily detectable. Furthermore, we document that the popular normal-truncated-normal SFA model with time-invariant efficiency shows a notable robustness to the mis-specification of the distribution of efficiency terms. The reason for this property is the model’s similarity to Gaussian pseudo-maximum likelihood estimator. Simulations are used to illustrate these properties and to show that the recovery of the correct productivity ranks is feasible even with very short panels. Empirical exercises show that using short panels is practicable in real datasets.
Journal: Applied Economics
Pages: 4544-4559
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904124
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904124
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4544-4559




Template-Type: ReDIF-Article 1.0
Author-Name: Gamze Ozturk Danisman
Author-X-Name-First: Gamze Ozturk
Author-X-Name-Last: Danisman
Author-Name: Ender Demir
Author-X-Name-First: Ender
Author-X-Name-Last: Demir
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Title: FINANCIAL RESILIENCE TO THE COVID-19 PANDEMIC: THE ROLE OF BANKING MARKET STRUCTURE
Abstract: 
 This article examines whether differences in banking market structures across countries influence the local stock market resilience to the COVID-19 pandemic. Using a sample of 66 countries for the period January 2020 to July 2020, our findings demonstrate that countries with more concentrated banking systems, with a higher presence of foreign banks, and a higher share of Islamic banks are more resilient to the pandemic. Considering the banking regulatory differences between countries, we observe that equity markets of countries with stricter regulatory requirements on capital and liquidity are more resilient to the COVID-19. Finally, regarding banking sector performance indicators, our findings show that while stock reactions of countries with more stable banking systems are more resilient to the pandemic; countries with more credit to deposit ratio, overhead costs, high provisions and nonperforming loans are more vulnerable. Our findings provide important implications for policymakers, regulatory bodies and investors.
Journal: Applied Economics
Pages: 4481-4504
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904118
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904118
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4481-4504




Template-Type: ReDIF-Article 1.0
Author-Name: Xuehui Zhang
Author-X-Name-First: Xuehui
Author-X-Name-Last: Zhang
Author-Name: Jianhua Tan
Author-X-Name-First: Jianhua
Author-X-Name-Last: Tan
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Title: Air pollution and initial public offering underpricing
Abstract: 
 We examine the impact of air pollution in a city in which an initial public offering (IPO) firm is located to its IPO underpricing. Our findings suggest that when air pollution is severe, the IPO underpricing is high. The results are robust to alternative metrics of air pollution and IPO underpricing, an instrumental variable approach, and a difference-in-differences research design. Additional analyses suggest that (1) seasoned firms located in severe air pollution cities have high crash risk, (2) seasoned firms located in severe air pollution cities have tightened financial constraints and makes more environmental investment, (3) IPO firms in severe air pollution cities have less analyst and institutional investor site visits. These findings support the underlying logic that air pollution worsens a firm’s information environment and financial constraint. We also find that the effect is more salient for IPOs with low analyst following, low institutional investor site visits, and high earnings management, corroborating the information asymmetry explanation of underpricing. Therefore, addressing environmental issues is important to public health as well as to capital formation.
Journal: Applied Economics
Pages: 4582-4595
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904123
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904123
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4582-4595




Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Fujiki
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Fujiki
Title: Crypto asset ownership, financial literacy, and investment experience
Abstract: 
 This study compares the key characteristics of Japanese crypto asset owners with those of nonowners. After confirming that average crypto asset owners are likely to be young and male as compared to average crypto asset nonowners, we find that average crypto asset owners tend to have a higher level of financial literacy and are more likely to use cashless payment methods and hoard cash, as compared to average crypto asset nonowners. This study also determined novel heterogeneities among crypto asset owners according to their investment experience with conventional risky financial assets in terms of cash hoarding and financial literacy. Crypto asset owners without investment experience with conventional risky financial assets do not hoard cash and their level of financial literacy is lower than that of both crypto asset owners and nonowners with investment experience with conventional risky financial assets. The results suggest that financial regulators should not treat crypto asset owners as a homogenous group of financially literate investors who are inherently good at internet transactions.
Journal: Applied Economics
Pages: 4560-4581
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904125
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904125
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4560-4581




Template-Type: ReDIF-Article 1.0
Author-Name: Rosaria Rita Canale
Author-X-Name-First: Rosaria Rita
Author-X-Name-Last: Canale
Author-Name: Giorgio Liotti
Author-X-Name-First: Giorgio
Author-X-Name-Last: Liotti
Title: Controversial effects of public debt on wage share: the case of the eurozone
Abstract: 
 The aim of the paper is to estimate the effects of increasing debt burden on the wage share of national income in the eurozone from 1999 to 2019 in an attempt to verify, through a dynamic panel data cointegrating technique, whether an increase in debt implies a redistribution of resources from workers to non-wage incomes. To deepen this analysis, the empirical investigation also distinguishes between change in primary public balance and interest payments to evaluate separately the effects of the two components of public debt on wages. The outcomes are consistent with a negative relationship between public debt as a whole and the wage share. However, when accounting for the two debt components, opposite results are registered as the debt service is negatively connected, while change in primary public deficit is positively connected with the wage share of national GDP. These results allow reflecting on the interaction between the monetary policy strategy and the national fiscal policies in the eurozone.
Journal: Applied Economics
Pages: 4533-4543
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904122
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904122
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4533-4543




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Hürtgen
Author-X-Name-First: Patrick
Author-X-Name-Last: Hürtgen
Title: Fiscal space in the COVID-19 pandemic
Abstract: 
 The ‘Great Lockdown’ in response to the COVID-19 pandemic has led to a severe world-wide economic crisis. In the euro area countries sovereign debt-to-GDP ratios are on the rise and reductions in expected fiscal surpluses raise sustainability concerns amongst investors. This paper provides novel estimates of non-linear state-dependent fiscal limits for the five largest euro area countries. Within the DSGE model I build a COVID-19 scenario calibrated to match the decline in real GDP growth forecasts between February and April 2020 and the fiscal stimulus packages announced until the end of March 2020. On average, fiscal space contracts by 58.4% of national GDP.
Journal: Applied Economics
Pages: 4517-4532
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904121
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904121
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4517-4532




Template-Type: ReDIF-Article 1.0
Author-Name: Z M Dai
Author-X-Name-First: Z M
Author-X-Name-Last: Dai
Author-Name: Xiuheng Shen
Author-X-Name-First: Xiuheng
Author-X-Name-Last: Shen
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Title: Technological innovation on economic growth from the perspective of investment-oriented environmental regulations: considering the threshold effect of China human capital
Abstract: 
 An investment-oriented environment and its regulations are the inevitable background when major economies face investment-driven economic development. While technological innovation helps form a compensatory or cost-based development path for economic growth, human capital plays a regulatory role in this development path as the largest dynamic and unstable variable. This research thus conducts a regulatory framework with an empirical study of the threshold effect from different levels of human capital investment on technological innovation and economic growth in four industries. The main conclusions are as follows: 1)We divide technological innovation caused by investment-based environmental regulation into active technological innovation.Passive technological innovation and subsequently identify the quantitative change effect of technological innovation on economic growth under investment-based environmental regulation. 2)Taking the human capital of different industries as threshold variables, we examine the threshold effect of investment-based environmental regulations and confirm the threshold value of different industries. 3)Through lagging second-order stability analysis, we basically solve the endogenous problem of investment-based environmental regulations, in which the relevant estimation conclusions appear more robust. Lastly, this research offers corresponding policy recommendations.
Journal: Applied Economics
Pages: 4632-4645
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904128
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904128
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4632-4645




Template-Type: ReDIF-Article 1.0
Author-Name: Taylan Mavruk
Author-X-Name-First: Taylan
Author-X-Name-Last: Mavruk
Author-Name: Stefan Sjögren
Author-X-Name-First: Stefan
Author-X-Name-Last: Sjögren
Title: Capital structure and monitoring by local owners
Abstract: 
 We examine how owners’ portfolio diversification influences their firms’ financial decision-making and performance. We find that firms with high local ownership use less leverage, but firms with local ownership by locally biased owners use higher debt levels relative to firms with diversified local owners. Firms with high local ownership in urban regions use higher debt levels. In rural regions, firms with high locally biased ownership use higher debt levels relative to firms with diversified local ownership. Finally, although we find weak evidence that firms with high local ownership underperform the market, the underperformance is smaller in firms with high locally biased ownership. Thus, locally biased owners, not local owners with diversified portfolios, have an informed monitoring role in firms, and this effect seems to mitigate negative liquidity consequences. The separation of local owners into those with locally biased and those with diversified portfolios determines when and how local ownership can be used as a good proxy for informed investors.
Journal: Applied Economics
Pages: 4614-4631
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904127
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904127
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4614-4631




Template-Type: ReDIF-Article 1.0
Author-Name: Hao Shen
Author-X-Name-First: Hao
Author-X-Name-Last: Shen
Author-Name: Jiang Xin
Author-X-Name-First: Jiang
Author-X-Name-Last: Xin
Author-Name: Xiaoyong Dai
Author-X-Name-First: Xiaoyong
Author-X-Name-Last: Dai
Author-Name: Chuan Liu
Author-X-Name-First: Chuan
Author-X-Name-Last: Liu
Title: The contingent value of managerial ties for new ventures during China’s anti-corruption campaign
Abstract: 
 The tie-based non-market strategy has been widely adopted by new ventures to gain a competitive advantage in China. However, the recent anti-corruption campaign may have profound influences on business practices, particularly on the utilization or leveraging of managerial ties for improving firm performance. This study explored the critically important but fairly underexplored research question of whether managerial ties continue to create value for new ventures under China’s anti-corruption campaign. Based on a sample of Chinese listed firms consisting of new ventures, this study found that business ties and political ties have produced divergent effects on the performance of new ventures since China’s anti-corruption campaign took effect. Moreover, a wider coverage or scope of anti-corruption increased the benefits of business ties and political ties, while a higher intensity of anti-corruption facilitated the role of anti-corruption scope on increasing the benefits of managerial ties for better performance of new ventures.
Journal: Applied Economics
Pages: 4664-4679
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1907283
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907283
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4664-4679




Template-Type: ReDIF-Article 1.0
Author-Name: Mathieu Bunel
Author-X-Name-First: Mathieu
Author-X-Name-Last: Bunel
Author-Name: Elisabeth Tovar
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Tovar
Title: Profit, morality and discrimination
Abstract: 
 Using an original vignette survey, we study the normative acceptability of the trade-off between immoral profit (discrimination) and costly morality (non-discrimination). We test the causal influence of three factors: i) the origin of discrimination, ii) the steepness of the morality/profit trade-off and iii) anti-discriminatory moral injunctions. Contrasting with past experimental and attitudinal studies, we find that a significant minority of respondents believe that labour market discrimination is acceptable when morality results in profit loss. We also find that the three tested factors have significant effects on normative opinions. Respondents are more likely to choose profit over morality when discrimination is taste-based than when it is caused by imperfect information. Discrimination’s acceptability rises with the cost of non discrimination. Anti-discriminatory moral injunctions sharply reduce the acceptability of profitable discrimination.
Journal: Applied Economics
Pages: 4692-4712
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1907285
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907285
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4692-4712




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Zhou
Author-X-Name-First: Wei
Author-X-Name-Last: Zhou
Author-Name: Jin Chen
Author-X-Name-First: Jin
Author-X-Name-Last: Chen
Author-Name: Shuai Lu
Author-X-Name-First: Shuai
Author-X-Name-Last: Lu
Author-Name: Ning Chen
Author-X-Name-First: Ning
Author-X-Name-Last: Chen
Title: Variable investment strategies for Chinese listed military enterprises: an empirical study based on double-market network analysis
Abstract: 
 As one of the industries that have been developing fast in the last few decades, it is found that the Chinese military industry presents a rapid growth in production market, while an opposite one in stock market. It is worth investing in the Chinese listed military enterprises which are stepping at a prosperous stage. However, how to reasonably select and invest them based on the ‘poor’ stock performance? To address this issue, this paper first proposes the multiple double-market networks and further derives the sealed and the open double-market network models. The disturbance analysis is carried out taking the military expenditure as the exogenous disturbance. Furthermore, the whole military industry and the individual listed military enterprises in China are empirically investigated. After that, the efficient, the inefficient, the relatively stable and the disturbed military enterprises can be recognized based on their network efficiency values. Moreover, a time-lag effect is found. A sharp increment of military expenditure may lead to the improvement of overall performance in the next year. Based on this, we give the variable investment strategies for investors to select the network efficient listed military enterprises and help them cope with the sharp changes of military expenditure.
Journal: Applied Economics
Pages: 4646-4663
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1907282
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907282
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4646-4663




Template-Type: ReDIF-Article 1.0
Author-Name: Semih Emre Çekin
Author-X-Name-First: Semih Emre
Author-X-Name-Last: Çekin
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Eric Olson
Author-X-Name-First: Eric
Author-X-Name-Last: Olson
Title: The Taylor curve: international evidence
Abstract: 
 We use the Taylor curve to gauge deviations of monetary policy from an efficiency locus for the United Kingdom (UK) and the four largest economies of the Eurozone (Germany, France, Italy, Spain) for the period 2000–2018. For this purpose, we use shadow interest rates, which is a common metric for both conventional and unconventional monetary policies, and the newly proposed Hamilton-filter to measure output gap, which improves upon the drawbacks of the traditionally used Hodrick–Prescott filter. Our findings suggest that deviations in the UK mostly occurred amid the global financial crisis and the post-Brexit period, whereas Eurozone members experienced more volatile deviations around 2001, during the global financial crisis and the Eurozone sovereign debt crisis.
Journal: Applied Economics
Pages: 4680-4691
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1907284
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907284
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4680-4691




Template-Type: ReDIF-Article 1.0
Author-Name: Jianda Wang
Author-X-Name-First: Jianda
Author-X-Name-Last: Wang
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: How renewable energy reduces CO2 emissions? Decoupling and decomposition analysis for 25 countries along the Belt and Road
Abstract: 
 To explore how renewable energy reduces carbon dioxide (CO2) emissions, this study decomposes the impacts of renewable energy on CO2 emissions by employing the Generalized Divisia Index Method (GDIM), based on panel data of 25 countries along the Belt and Road Initiative (BRI) for the period 2005–2019. Also, we explore their decoupling relationships. The results indicate that: (1) The numbers of countries with an ideal strong decoupling state reach the highest point during 2010 and 2015. (2) The growth in renewable energy scale is the key driving force responsible for promoting CO2 emissions in most countries along the BRI, while the main factor inhibiting CO2 emissions is the carbon intensity of renewable energy. (3) The carbon mitigation effect of the increase in the proportion of renewable energy is considerably higher than that of technological improvements from renewables, and it will promote the transformation of the relationship between renewable energy and carbon emissions into a more ideal strong decoupling relationship. (4) The effect of carbon efficiency on emission is not significant at this stage, but it will be much more important in the future.
Journal: Applied Economics
Pages: 4597-4613
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904126
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904126
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4597-4613




Template-Type: ReDIF-Article 1.0
Author-Name: Zeeshan Khan
Author-X-Name-First: Zeeshan
Author-X-Name-Last: Khan
Author-Name: Muntasir Murshed
Author-X-Name-First: Muntasir
Author-X-Name-Last: Murshed
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Siqun Yang
Author-X-Name-First: Siqun
Author-X-Name-Last: Yang
Title: The roles of export diversification and composite country risks in carbon emissions abatement: evidence from the signatories of the regional comprehensive economic partnership agreement
Abstract: 
 The ratification of the Regional Comprehensive Economic Partnership (RCEP) agreement has laid the platform for the signatory nations to boost their respective economic growth rates, and also raised environmental concerns. So far, little is known regarding the roles of export diversification and the composite risk index in the abatement of carbon dioxide (CO2) emissions for the RCEP countries. Accordingly, this study investigates the impacts of export diversification and composite risk index on CO2 emissions for the RCEP countries between 1987 and 2017. The empirical findings indicate that lowering the composite risk index, undertaking a transition to renewable energy, and enhancing environmentally-related technological innovations help reduce CO2 emissions in the long run. In contrast, export diversification is found to monotonically boost CO2 emission levels. The findings also authenticate the environmental Kuznets curve (EKC) hypothesis to certify that the economic growth of the RCEP nations will be both an initial contributor and ultimate inhibitor of CO2 emissions. In line with these findings, it is important to lower the country risk profiles of the RCEP nations, restructure the export diversification schemes, ensure technological advancement and expedite economic growth in an environmentally-friendly manner.
Journal: Applied Economics
Pages: 4769-4787
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907289
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907289
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4769-4787




Template-Type: ReDIF-Article 1.0
Author-Name: Devika Arumugam
Author-X-Name-First: Devika
Author-X-Name-Last: Arumugam
Author-Name: P Krishna Prasanna
Author-X-Name-First: P Krishna
Author-X-Name-Last: Prasanna
Title: A Game of Hide-and-Seek between Proprietary and Buy-Side Algorithmic Traders: Causal links with Market Quality
Abstract: 
 This paper classifies Algorithmic Traders (ATs) as Proprietary Algorithmic Traders (PATs) and Buy-side Algorithmic Traders (BATs) and examines their dynamic relationship with market quality, using data from the National Stock Exchange (NSE), India. We find that the two categories of traders cause a differential impact on market quality measures and vice versa. BATs’ order placement improves liquidity by narrowing the quoted spread, while PATs’ and BATs’ cancellation worsens liquidity by widening the quoted spread. PATs’ order placement increases the price impact but reduces the realized spread, whereas their cancellation increases the realized spread. Furthermore, when the quoted spread increases, ATs increase their order placement and cancellation. When the realized spread increases, PATs cancel less of their orders. Contrarily, when the price impact increases, PATs’ participation (both order placement and cancellation) and BATs’ cancellation increase. Besides, we provide new evidence that among the ATs, order placement of BATs crowds out that of PATs, but not vice versa.
Journal: Applied Economics
Pages: 4788-4798
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907290
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907290
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4788-4798




Template-Type: ReDIF-Article 1.0
Author-Name: Lilia Rodríguez-Tapia
Author-X-Name-First: Lilia
Author-X-Name-Last: Rodríguez-Tapia
Author-Name: Daniel A. Revollo-Fernández
Author-X-Name-First: Daniel A.
Author-X-Name-Last: Revollo-Fernández
Author-Name: Jorge A. Morales-Novelo
Author-X-Name-First: Jorge A.
Author-X-Name-Last: Morales-Novelo
Author-Name: Carolina Massiel Medina-Rivas
Author-X-Name-First: Carolina Massiel
Author-X-Name-Last: Medina-Rivas
Title: Water in Mexican industry: an economic value study
Abstract: 
 The manufacturing industry in Mexico is concentrated in the central and northern region of the country, which is characterized by high water stress. This condition foreshadows a complicated future scenario for the industry, such as decreasing water availability in the face of dynamic economic development. The objective of this research is to estimate the economic value of water in the industry. The applied method consists of estimating the marginal productivity of water from the technical function of the production of the manufacturing industry, modelled with a translogarithmic function. The goodness of this function is that it is flexible in the values assumed by its parameters, overcoming the rigidity of the Cobb Douglas function. The information was obtained from the 2014 Industrial Economic Census, which reports data from 476,753 economic units throughout the country. The main research findings are that: i) it is estimated that a cubic metre of water used in the manufacturing industry nationwide creates an added value of 7.8 dollars, and ii) – according to the cross-elasticities estimated in the model – the industry technology is not sufficiently flexible to the possibility of substituting water for work and raw materials, and complementary with capital.
Journal: Applied Economics
Pages: 4799-4809
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1908948
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1908948
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4799-4809




Template-Type: ReDIF-Article 1.0
Author-Name: Anna Maria Ferragina
Author-X-Name-First: Anna Maria
Author-X-Name-Last: Ferragina
Author-Name: Stefano Iandolo
Author-X-Name-First: Stefano
Author-X-Name-Last: Iandolo
Author-Name: Erol Taymaz
Author-X-Name-First: Erol
Author-X-Name-Last: Taymaz
Title: Decomposing the immigration-trade link using price and quantity margins: the role of education
Abstract: 
 This paper examines the immigration-trade links for OECD countries for the 2000–2015 period. By decomposing the overall effect of the presence of immigrants on the export of the hosting countries according to the methodology proposed by Hummels and Klenow (2005), we investigate if there is a migration-driven increase in the number of export relationships (extensive margin) and/or simply a growth of pre-existing export relationships (intensive margin) decomposed by an increase in quantity and price. We consider the country of origin of immigrants and their level(s) of education. Our results confirm the existence of a pro-export effect of immigrants attributable to the contribution of international networks regarding the reduction in information costs, which is especially strong for developed countries as sources of migration. However, when we look at the heterogeneous impact of different levels of immigrants’ education, we find that the pro-trade effect is due to the contribution of less- and more educated immigrants to the reduction of trade costs, while the medium educated do not spur bilateral trade significantly. We address the potential endogeneity problems by adopting an instrumental variable (IV) approach based on shift-share IV and pull-and-push factors that could induce international migration.
Journal: Applied Economics
Pages: 4734-4749
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907287
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907287
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4734-4749




Template-Type: ReDIF-Article 1.0
Author-Name: Golaka C. Nath
Author-X-Name-First: Golaka C.
Author-X-Name-Last: Nath
Author-Name: Vardhana Pawaskar
Author-X-Name-First: Vardhana
Author-X-Name-Last: Pawaskar
Author-Name: Manoj Dalvi
Author-X-Name-First: Manoj
Author-X-Name-Last: Dalvi
Author-Name: Manoel Pacheco
Author-X-Name-First: Manoel
Author-X-Name-Last: Pacheco
Title: Testing the expectations hypothesis and explaining the determinants of term premia: evidence from the Indian money market
Abstract: 
 The pure expectations hypothesis states that the current yields on bonds with different maturities reflect investor expectations of future interest rates. Analysing the short-term inter-bank rates in a Vector Error Correction Model (VECM), the study could reject the pure as well as the general expectations theory in case of the 1 month and 3 months rates but not in case of 14 day rates. The term premia is found to be time-varying. The study attempts to quantify and decompose the term premia, inherent in the money market rates. The study uses the market spreads derived from the swap market, T-Bills, and CD markets to understand the level of decomposition of the term premia. A latent factor model was used to break down the term premia and decompose the same into credit and liquidity risk factors by using information from related money market instruments.
Journal: Applied Economics
Pages: 4750-4768
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907288
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907288
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4750-4768




Template-Type: ReDIF-Article 1.0
Author-Name: Ruixue Zhu
Author-X-Name-First: Ruixue
Author-X-Name-Last: Zhu
Author-Name: Xiancun Hu
Author-X-Name-First: Xiancun
Author-X-Name-Last: Hu
Author-Name: Vera Li
Author-X-Name-First: Vera
Author-X-Name-Last: Li
Author-Name: Chunlu Liu
Author-X-Name-First: Chunlu
Author-X-Name-Last: Liu
Title: Investigating economic roles of multinational construction industries: A super-efficiency DEA approach
Abstract: 
 The economic role of the construction industries has changed across countries in the past decades with rapid economic growth. This research investigates the economic role of multinational construction industries covering 41 countries and regions over 2000–2014 through measuring their overall economic performance and their linkage performance. The efficiency indicators are innovatively measured and ranked by combining the super-efficiency data envelopment analysis (DEA) model with the World Input-Output database. The results demonstrate that the construction industries play an important role in promoting national economic development and enhancing pull effect efficiencies, particularly in less advanced economies. The impact of the construction industries in advanced economies relates mainly to push effect production efficiencies. The research results can assist policymakers and businesses to formulate policies and strategies to ensure the construction industries continue to contribute to the growth and development of the economy. The research provides a feasible pathway towards applying DEA in a multi-regional input-output analysis.
Journal: Applied Economics
Pages: 4810-4822
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910133
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910133
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4810-4822




Template-Type: ReDIF-Article 1.0
Author-Name: Honglin Yang
Author-X-Name-First: Honglin
Author-X-Name-Last: Yang
Author-Name: Zhiyuan Zhen
Author-X-Name-First: Zhiyuan
Author-X-Name-Last: Zhen
Author-Name: Hong Wan
Author-X-Name-First: Hong
Author-X-Name-Last: Wan
Title: Optimal portfolio financing selection in a capital-constrained supply chain with risk-averse members
Abstract: 
 We first consider a supplier-retailer supply chain in which only the capital-constrained retailer is risk-averse while the supplier and the bank both are risk-neutral. The newsvendor-like retailer may fund its business by two portfolio financing schemes to satisfy uncertain market demand: (1) bank loans and the supplier’s equity investment (BCF-SI) and (2) bank loans and the supplier’s credit guarantee (BCF-SG). Using CVaR criterion, we model the behaviour of the risk-averse retailer to analytically derive the portfolio financing equilibrium in a Stackelberg supplier-led game separately for two portfolio financing schemes. We characterize the conditions under which the supplier and the retailer reach Pareto improvement under two portfolio financing schemes compared with the non-financing benchmark. Moreover, we extend the model to the case in that the supplier and retailer both are risk-averse while only the bank is risk-neutral to further investigate the impact of risk aversion on the optimal financing scheme selection. The numerical examples verify our theoretical results.
Journal: Applied Economics
Pages: 4713-4733
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907286
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907286
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4713-4733




Template-Type: ReDIF-Article 1.0
Author-Name: Franziska Zimmert
Author-X-Name-First: Franziska
Author-X-Name-Last: Zimmert
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: The creation and resolution of discrepancies between preferred and actual working hours over the life course
Abstract: 
 This article contributes to the analysis of working hour discrepancies, i.e., under- and overemployment, by exploring how they emerge and resolve with special consideration of the household context. It uses a rich longitudinal data set, the German Socio-economic Panel, for a discrete duration analysis controlling for unobserved heterogeneity. We focus on the most relevant household and job characteristics. Findings suggest that job autonomy plays a crucial role in the creation and resolution of discrepancies. We especially contribute to previous studies by also examining path dependence and find that both the creation and resolution of discrepancies are characterized by positive duration dependence but by negative occurrence dependence.
Journal: Applied Economics
Pages: 4899-4916
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912279
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912279
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4899-4916




Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Peter Dahlin
Author-X-Name-First: Peter
Author-X-Name-Last: Dahlin
Title: Does voluntary auditing help ventures? Evidence from Sweden
Abstract: 
 Auditing in ventures may provide the necessary financial reporting bulwark, however, auditing also has direct and indirect costs that may be less efficacious in a venture with limited routines and capabilities, and could take an entrepreneur’s attention away from venture goals. We draw on a quasi-natural experiment in Sweden, where from 2011 small private firms meeting threshold criteria were exempt from audit. The law resulted in three groups of ventures – (i) those who were above the threshold criteria and continued with an audit, and among those who were exempt some chose to (ii) voluntarily audit or (iii) opted-out of the audit. Starting with ventures established in 2007 (about three years before the passage of the law), and drawing records of the Swedish Companies Registration Office, our results show that while opting out of audit slightly improves the odds of survival, it has detrimental effects when sales volatility or return on assets are high. Those voluntary auditing can realize a higher debt ratio, but also face a decline in sales and net profit. The findings have implications for entrepreneurs in particular and policymakers considering initiation or repealing of audit requirements for ventures.
Journal: Applied Economics
Pages: 4835-4856
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910135
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910135
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4835-4856




Template-Type: ReDIF-Article 1.0
Author-Name: Xuhui Peng
Author-X-Name-First: Xuhui
Author-X-Name-Last: Peng
Author-Name: Zhihan Yang
Author-X-Name-First: Zhihan
Author-X-Name-Last: Yang
Author-Name: Jingjing Shao
Author-X-Name-First: Jingjing
Author-X-Name-Last: Shao
Author-Name: Xue Li
Author-X-Name-First: Xue
Author-X-Name-Last: Li
Title: Board diversity and corporate social responsibility disclosure of multinational corporations
Abstract: 
 This study discovers the relationship between board diversity and corporate social responsibility (CSR) disclosure of multinational corporations (MNCs). The existing studies have shown the positive roles of board gender diversity (BGD), education background diversity (EBD), and tenure diversity (TD) in decision-making. Thus, we believe that the positive effect also exists in the strategic CSR decision-making process of the board of directors; it enhances corporate environmental disclosure (ED) and social disclosure (SD). After investigating 140 MNCs from China, Japan, the UK, and the US, the result shows that (1) BGD positively affects ED and SD of MNCs and (2) TD positively affects SD of MNCs. This study further explains the relationship between board diversity and CSR disclosure from the perspective of stakeholder and resource-based view, emphasizing the role of board diversity in stakeholder management and the effectiveness of CSR decision-making. The study helps provide policy makers with inspirations to improve CSR of MNCs by formulating policies related to board diversity. Our evidence also helps MNCs to develop the criteria for improving CSR strategy through board diversity.
Journal: Applied Economics
Pages: 4884-4898
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910620
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910620
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4884-4898




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Dennis Alba
Author-X-Name-First: Joseph Dennis
Author-X-Name-Last: Alba
Author-Name: Peiming Wang
Author-X-Name-First: Peiming
Author-X-Name-Last: Wang
Title: Trilemma, dilemma or 2.5-lemma in the transmission of monetary policy: evidence from a Markov-switching panel data model
Abstract: 
 We examine the spill-over effects of interest rate transmission of United States monetary policy to peripheral countries with various exchange rate regimes and capital control management policies. To do so, we propose a two-state continuous-time hidden Markov-switching panel data model using an empirical framework based on the Taylor rule. We find peripheral countries with flexible exchange rates and free capital mobility respond differently to changes in short-term US interest rates under the two regimes based on interest rate volatility. Under the high volatility regime, peripheral countries respond to decreases but not to increases in short-term US interest rate. Under the low volatility regime, peripheral countries respond more strongly to an increase than a decrease in short-term US interest rate. In addition, peripheral countries under high volatility regimes respond more strongly than countries under low volatility regimes to a decrease in short-term US interest rate. In both volatility regimes, capital controls insulate the peripheral countries from changes in the short-term US interest rate regardless their exchange rate regimes.
Journal: Applied Economics
Pages: 4917-4929
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912281
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912281
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4917-4929




Template-Type: ReDIF-Article 1.0
Author-Name: Ryadh Alkhareif
Author-X-Name-First: Ryadh
Author-X-Name-Last: Alkhareif
Author-Name: Moayad Al-Rasasi
Author-X-Name-First: Moayad
Author-X-Name-Last: Al-Rasasi
Title: Estimating the money demand function for Saudi Arabia using divisia monetary aggregate
Abstract: 
 This paper constructs the broader Divisia monetary aggregate (D2) for the Kingdom of Saudi Arabia over the period from 1999 to 2018. Unlike the traditional money supply aggregate (M2), movements of the Divisia monetary aggregate seems to reflect the domestic economic developments and hence can be very useful when setting macroeconomic policies in the Kingdom. In addition, the paper applies the Keynesian Money Demand Theory to estimate the demand for money using the Divisia monetary aggregate. The findings confirm the stability of the money demand function for Saudi Arabia.
Journal: Applied Economics
Pages: 4823-4834
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910134
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910134
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4823-4834




Template-Type: ReDIF-Article 1.0
Author-Name: Yaxian Gong
Author-X-Name-First: Yaxian
Author-X-Name-Last: Gong
Title: Quality disclosure with substitute and complementary goods
Abstract: 
 This paper analyzes the quality disclosure when firms simultaneously choose the quantities of products to be produced. By assuming that each firm is privately informed about the quality of its own products and makes quality disclosure decisions after observing private information, we identify the effects of the degree of substitution/complementarity on the amount of disclosed information. We find that when commodities are substitute goods, fixing the disclosure cost, the relationship between competitiveness and the amount of disclosed information is non-monotonic. Furthermore, when commodities are complementary goods, increasing the degree of complementarity will lead to more information being disclosed.
Journal: Applied Economics
Pages: 4857-4867
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910618
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910618
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4857-4867




Template-Type: ReDIF-Article 1.0
Author-Name: José C. Fariñas
Author-X-Name-First: José C.
Author-X-Name-Last: Fariñas
Author-Name: Ana Martín-Marcos
Author-X-Name-First: Ana
Author-X-Name-Last: Martín-Marcos
Author-Name: Francisco J. Velázquez
Author-X-Name-First: Francisco J.
Author-X-Name-Last: Velázquez
Title: Scale of operations of MNCs and heterogeneity: a multi-country analysis
Abstract: 
 This paper examines the relationship between the productivity of parent firms and the scale of their subsidiaries in foreign markets. The empirical exam is based on a large sample of firms from 32 different countries. The average elasticity estimated for the baseline sample is 0.34; i.e. a 1% increase in labour productivity increases the scale of subsidiaries by 0.34%. For TFP, the elasticity is slightly lower, 0.23. The relationship is much stronger for manufacturing firms than for firms in the service sector. The paper also analyzes the degree of heterogeneity of elasticities estimated across countries. We find differences in the magnitude of elasticities but confirm the positive relationship between scale and parent firm productivities for a large fraction of countries. It also addresses the issue of potential endogeneity of productivity. The positive relationship between scale and productivity is confirmed when controlling for this.
Journal: Applied Economics
Pages: 4868-4883
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910619
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910619
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4868-4883




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Zare
Author-X-Name-First: Mohammad
Author-X-Name-Last: Zare
Author-Name: Omid Naghshineh A.
Author-X-Name-First: Omid
Author-X-Name-Last: Naghshineh A.
Author-Name: Erfan Salavati
Author-X-Name-First: Erfan
Author-X-Name-Last: Salavati
Author-Name: Adel Mohammadpour
Author-X-Name-First: Adel
Author-X-Name-Last: Mohammadpour
Title: An agent-based model and detect price manipulation based on intraday transaction data with simulation
Abstract: 
 In this article, we propose an agent-based model for LOB markets, and by simulation, we estimate the model’s parameters. This model has two interesting points. First, we divide the data transaction of 1 day into six parts. Second, we detect price manipulation by using intraday transaction data. To detect price manipulation, we simulate the model once without the price manipulator and once with the price manipulator, and then by using some statistical properties such as skewness we find relations to detect price manipulation.
Journal: Applied Economics
Pages: 4931-4949
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912282
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912282
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:4931-4949




Template-Type: ReDIF-Article 1.0
Author-Name: Yosra Ghabri
Author-X-Name-First: Yosra
Author-X-Name-Last: Ghabri
Author-Name: Ahmed Ayadi
Author-X-Name-First: Ahmed
Author-X-Name-Last: Ayadi
Author-Name: Khaled Guesmi
Author-X-Name-First: Khaled
Author-X-Name-Last: Guesmi
Title: Fossil energy and clean energy stock markets under COVID-19 pandemic
Abstract: 
 This paper analyses the dynamic impact of fossil energy shocks (crude oil and Natural gas) on renewable clean energy stock markets during the COVID-19 pandemic. Using a time-varying VAR model with stochastic volatilities, we conduct distinct analyses over the period from 10th March to 15th June 2020, while distinguishing between three sub-periods. Our key findings show a significant increase in the returns of clean energy stocks after the sharp collapse of crude oil prices. However, we find the opposite effect on renewable energy stock returns after the OPEC+ agreement. The results also indicate that the announcement of COVID-19 as a global pandemic caused the prices of both Natural gas and renewables to rise after a decrease. By contrast, after the crude oil shocks, there was no response of renewables to Natural gas shocks. Furthermore, the stochastic volatility reveals that after the OPEC-Russia agreements, the volatility of crude oil returns gets back to normal and steady fluctuation. Our results provide useful implications for policy-makers to mitigate the negative effects on renewable energy investments due the uncertainty related to the ongoing pandemic.
Journal: Applied Economics
Pages: 4962-4974
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912284
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912284
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:4962-4974




Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Maria Malmierca
Author-X-Name-First: Maria
Author-X-Name-Last: Malmierca
Title: Persistence in the private debt-t -GDP ratio: evidence from 43 OECD countries
Abstract: 
 This paper investigates the degree of persistence of the private debt-to-GDP ratio in 43 OECD countries by estimating the fractional integration parameter of each series. Almost all of them are found to be highly persistent, with orders of integration around or above 1. The only exception is Argentina, where the series appears to be mean-reverting. These results highlight the key importance of macroprudential policy as one of the pillars of macro policy.
Journal: Applied Economics
Pages: 5018-5027
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912700
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912700
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:5018-5027




Template-Type: ReDIF-Article 1.0
Author-Name: Maolin Wang
Author-X-Name-First: Maolin
Author-X-Name-Last: Wang
Author-Name: Huiting Lin
Author-X-Name-First: Huiting
Author-X-Name-Last: Lin
Author-Name: Yehua Huang
Author-X-Name-First: Yehua
Author-X-Name-Last: Huang
Title: Structural holes and R&D investment: evidence from top management teams of China’s A-share listed firms
Abstract: 
 The extant literature recognize that social relations and networks strengthen corporate innovation, but the contribution of the top management teams and the channel of social status and network location in corporate innovation is not well addressed. By constructing firm-to-firm matrices by top management team members’ experience with the data set of China’s A-share listed companies, we find that higher status and better network location with more structural holes foster corporate R&D investment and the number of invention patents, although the effect on total innovation outputs is not significant. What’s more, the external and internal tunnels are further explored by testing the effect of information booming and absorptive willingness. It is confirmed that the positive impact of structural holes on corporate innovation is magnified with the penetration of high-speed rail and internet as well as high compensation incentive. This research supports the structural holes advantage theory, expands the research of the social networks, and provides reference for corporate innovation practice by taking advantages of structural holes from the top management teams.
Journal: Applied Economics
Pages: 4985-4999
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912698
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912698
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:4985-4999




Template-Type: ReDIF-Article 1.0
Author-Name: Chung Choe
Author-X-Name-First: Chung
Author-X-Name-Last: Choe
Author-Name: Sung Hoon Kang
Author-X-Name-First: Sung Hoon
Author-X-Name-Last: Kang
Author-Name: Koangsung Choi
Author-X-Name-First: Koangsung
Author-X-Name-Last: Choi
Title: Effects of wage-peak system on youth employment: Evidence from South Korea
Abstract: 
 After the increase in the minimum retirement age, South Korea introduced a wage-peak system to mitigate increases in firm costs due to the wage of elderly workers. In this study, we examined how the later retirement age has affected employment opportunities for younger workers. We also investigated the difference in impact of later retirement on employment between firms within and outside of the system. Using the difference-in-differences empirical method, we found that this system has increased employment opportunities for younger workers. Moreover, as the proportion of elderly workers increases, the effect of the wage-peak system on the proportion of young workers is enhanced.
Journal: Applied Economics
Pages: 4975-4984
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912697
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912697
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:4975-4984




Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Frick
Author-X-Name-First: Fabian
Author-X-Name-Last: Frick
Author-Name: Corina Jantke
Author-X-Name-First: Corina
Author-X-Name-Last: Jantke
Author-Name: Johannes Sauer
Author-X-Name-First: Johannes
Author-X-Name-Last: Sauer
Title: Firm-level innovation and efficiency in the food sector: Insights from a literature-based innovation output indicator
Abstract: 
 Innovation activity is commonly regarded as one prerequisite for the competitiveness of food manufacturers. However, new product introductions typically face a high failure rate, which frequently deprives food manufacturers of returns on new product developments. Accordingly, existing empirical evidence on the effect of innovation activity on firm performance is not unanimous in the food sector. In this study, we explore contemporaneous and lagged effects of product and process innovation on production efficiency of dairy processors in the German market. Endogeneity of innovation variables and production inputs is accounted for by instrumentation using a System GMM approach. While we find no positive effect of patents or the number of new product launches on efficiency, we find a consistent positive effect of successful new products on the dairy processors’ technical efficiency. On the methodological side, our results confirm the relevance of the literature-based innovation output indicator as a differentiated measure of product innovation suitable for measuring the innovation effect on firm performance. Regarding innovation management in the food sector, the results highlight the challenge related to high failure rates of new products in the food sector and emphasize the importance of new product quality for business performance.
Journal: Applied Economics
Pages: 5000-5017
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912699
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912699
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:5000-5017




Template-Type: ReDIF-Article 1.0
Author-Name: Yacine Hammami
Author-X-Name-First: Yacine
Author-X-Name-Last: Hammami
Author-Name: Youssef Riahi
Author-X-Name-First: Youssef
Author-X-Name-Last: Riahi
Title: Leverage and balance-sheet size: a comparative study between Islamic and conventional banks
Abstract: 
 We carry out a comparative analysis of procyclical leverage between Islamic banks and conventional banks in the GCC countries and Malaysia. We collect an unbalanced panel data set including 57 conventional banks and 73 Islamic banks covering the period 2000–2019. First, we document strong evidence of procyclical leverage for our sample banks. Second, our results highlight that conventional banks have statistically stronger leverage procyclicality than Islamic banks, even after controlling for accounting profitability, economic conditions, bank regulations, and wholesale funding. Moreover, we document that the differential in the leverage procyclicality across Islamic banks and conventional banks has been stronger after the global financial crisis, and seems to be more pronounced in small banks compared with large banks. Our findings suggest that the differential in the leverage procyclicality across the two types of banks is related to their different business models. An implication of our results is that the low leverage procyclicality of Islamic banks is a key factor contributing to the stability of a dual banking system.
Journal: Applied Economics
Pages: 4950-4961
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912283
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912283
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:4950-4961




Template-Type: ReDIF-Article 1.0
Author-Name: Panagiota Papadimitri
Author-X-Name-First: Panagiota
Author-X-Name-Last: Papadimitri
Author-Name: Fotios Pasiouras
Author-X-Name-First: Fotios
Author-X-Name-Last: Pasiouras
Author-Name: Menelaos Tasiou
Author-X-Name-First: Menelaos
Author-X-Name-Last: Tasiou
Title: Financial leverage and performance: the case of financial technology firms
Abstract: 
 Over the past years, the financial technology industry has gained considerable attention from policy makers and regulators, market participants, as well as the general public. Despite the interest of these stakeholders, academic research on the topic is scarce and we aim to extend the literature by examining the impact of financial leverage on the performance of FinTech firms. Using a sample of 146 U.S. FinTech firms operating in ten market segments over the period 2000–2016, we find that financial leverage has a negative impact on profitability and risk-adjusted performance. We also reveal that the magnitude of the influence of leverage depends on firm age. The results are robust to the use of a cross-country sample, alternative model specifications and estimation approaches.
Journal: Applied Economics
Pages: 5103-5121
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1915949
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1915949
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5103-5121




Template-Type: ReDIF-Article 1.0
Author-Name: Fabricio Linhares
Author-X-Name-First: Fabricio
Author-X-Name-Last: Linhares
Author-Name: Glauber Nojosa
Author-X-Name-First: Glauber
Author-X-Name-Last: Nojosa
Author-Name: Rogerio Bezerra
Author-X-Name-First: Rogerio
Author-X-Name-Last: Bezerra
Title: Changes in the revenue–expenditure nexus: confronting evidence with fiscal policy in Brazil
Abstract: 
 This study examines causality shifts in the revenue–expenditure nexus in Brazil during the years 1996–2019. The literature usually assumed a time-invariant causality link between government revenues and expenditures. Such assumption becomes often implausible when the sample period covers significant economic, political and policy changes, like the case of Brazil in the last two decades. Based on time-varying Granger causality tests, we found three distinct causality episodes: fiscal synchronization in 2005–2008, spend-and-tax in 2010–2013, and a tax-and-spend in 2015–2018. These episodes are intercalated with periods of no causality that coincides with economic crisis, political turmoil and major shifts in fiscal policy. The findings suggest that the interplay between fiscal policy orientation and primary surplus targeting is an important factor in the revenue–expenditure nexus. The most recent causality episode suggests stronger effects running from revenues to expenditures in the Brazilian primary budget dynamics. In this context, according to the tax-and-spend hypothesis, cutting spending seems to be the right course of action to restore fiscal balance in Brazil. A tax increase should be considered with caution because it may only incentive the government to grow its expenditures.
Journal: Applied Economics
Pages: 5051-5067
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1915463
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1915463
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5051-5067




Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Marcus T. Wolfe
Author-X-Name-First: Marcus T.
Author-X-Name-Last: Wolfe
Author-Name: Andrew S Manikas
Author-X-Name-First: Andrew S
Author-X-Name-Last: Manikas
Title: Talk is cheap?! The value of a ban on product simulations and renderings on a crowdfunding platform
Abstract: 
 We exploit the 20 September 2012 intervention on Kickstarter where projects in the Hardware and Project Design categories, but not in other categories, were prohibited from presenting simulations and renderings in their crowdfunding campaigns. Using a partition-type analysis estimate for 110,258 projects, we find that the intervention lowered the odds of meeting the funding goal (extensive margin); however, it did not significantly increase the amount of funding received above the goal amount (intensive margin). The findings are robust to pre-trends tests. Post-intervention, based on the exploration-exploitation framework, projects in the treated categories used more exploitative (vs. explorative) language. Furthermore, projects in the treated category benefited from using narcissistic and entrepreneurial orientation rhetoric before the intervention; however, this did not hold after the intervention. Finally, projects from the control categories did not increase deceptive language after the intervention and experienced lower odds of meeting funding goals after the intervention when using ambiguous language. The findings highlight the role of centralized intervention in improving signals on noisy crowdfunding platforms and the declining role of rhetoric for both treated and control categories.
Journal: Applied Economics
Pages: 5068-5089
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1915464
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1915464
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5068-5089




Template-Type: ReDIF-Article 1.0
Author-Name: Sumei Luo
Author-X-Name-First: Sumei
Author-X-Name-Last: Luo
Author-Name: Yixiang Shi
Author-X-Name-First: Yixiang
Author-X-Name-Last: Shi
Author-Name: Yongkun Sun
Author-X-Name-First: Yongkun
Author-X-Name-Last: Sun
Author-Name: Zhiqi Zhao
Author-X-Name-First: Zhiqi
Author-X-Name-Last: Zhao
Author-Name: Guangyou Zhou
Author-X-Name-First: Guangyou
Author-X-Name-Last: Zhou
Title: Can FDI and ODI two-way flows improve the quality of economic growth? Empirical Evidence from China
Abstract: 
 Different from the existing literature which only studied the unilateral impact of the FDI or the ODI on economic growth, this paper took both the FDI and the ODI into the analysis framework of international capital flow on economic growth, and tried to introduce the mediating effect model to test the transmission mechanism and influence effect of international capital two-way flow on the economic growth. The results showed that both the FDI and the ODI can significantly improve the quality of economic growth, and the role of the FDI was stronger than that of the ODI. At the same time, the FDI and the ODI had obvious regional heterogeneity in promoting the quality of economic growth. International capital flow mainly requires three mediating effects to improve the quality of economic growth, which are the employment, the technology spillover as well as the output efficiency. The three effects of the FDI have a played significant role in promoting the quality of economic growth, while the ODI mainly plays a role through the improvement of output efficiency and technology reverse spillover. There are also significant regional differences in mediating effects.
Journal: Applied Economics
Pages: 5028-5050
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1914318
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1914318
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5028-5050




Template-Type: ReDIF-Article 1.0
Author-Name: Runqi Zhang
Author-X-Name-First: Runqi
Author-X-Name-Last: Zhang
Author-Name: Jinlong Zhao
Author-X-Name-First: Jinlong
Author-X-Name-Last: Zhao
Author-Name: Jingyuan Zhao
Author-X-Name-First: Jingyuan
Author-X-Name-Last: Zhao
Title: Effects of free trade agreements on global value chain trade----a research perspective of GVC backward linkage
Abstract: 
 Using the World Input-Output Database from 2000 to 2014 combined with the Database from the World Bank, this paper examines the export promotion effects of FTAs on member countries’ GVC trade. Empirical analysis shows that, first, the depth of free trade agreements has significant positive effects on both the total trade and exports of foreign value added (FVA) among member countries. Each additional core clause in free trade agreement will increase the FVA exports by 0.27%. Second, free trade agreements not only enhance the export levels of simple value chains and complex value chains but promote the value-added exports of all sub-items of GVC trade at different levels. Further study shows that gaps in economic development levels among FTA members and FTA structures can both lead to asymmetric and heterogeneous effects on their FVA exports. Moreover, as to FTA contents, WTO-X clauses which focus more on trade policy coordination behind the border have more important impacts on FTA members’ FVA exports.
Journal: Applied Economics
Pages: 5122-5134
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1917763
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1917763
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5122-5134




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Author-Name: Liwei Guo
Author-X-Name-First: Liwei
Author-X-Name-Last: Guo
Title: Sources of production growth in Chinese agriculture:empirical evidence from penal data results 2001–2018
Abstract: 
 First of all, this article uses the regional panel data of Chinese agriculture ranging from 2001–2018 as samples, taking the relationship among the three, namely, factor allocation efficiency, biased technical progress and agricultural total factor productivity, as the entry point to systematically analyse the fluctuation of total factor productivity growth and its decomposition terms. Then, the bias index of technical progress and factor allocation are measured by relaxing the strict assumption of alternative elastic fixation and broadening the traditional hypothesis of neutral technical progress by using C-D functions, respectively. Finally, this article puts highlight on the following questions: What is the source of sustained growth of agricultural TFP at this stage? Which factor does the agricultural factor allocation efficiency depend on? Whether there are existing distortion and bias in agricultural factor allocation and if the bias of which is in step with agricultural-biased technical progress?
Journal: Applied Economics
Pages: 5135-5157
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1918626
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1918626
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5135-5157




Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Ventura
Author-X-Name-First: Luigi
Author-X-Name-Last: Ventura
Author-Name: Maria Ventura
Author-X-Name-First: Maria
Author-X-Name-Last: Ventura
Title: Migration, diversity and regional risk sharing
Abstract: 
 The economic consequences of migration have become the topic of many recent contributions in theoretical and applied economics. However, only a handful of papers have dealt with the implications of migration for risk sharing. We intend to fill in this gap in the literature by exploring the effects of migration and the ensuing cultural diversity on risk sharing in receiving economies, by using data on US states in the period 2000–2015. Our empirical results strongly suggest that migration enhances risk sharing in host economies, but non monotonically so. Moreover, cultural diversity is key in this risk sharing-enhancing effect of migration.
Journal: Applied Economics
Pages: 5090-5102
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1915465
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1915465
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5090-5102




Template-Type: ReDIF-Article 1.0
Author-Name: Fakhri J. Hasanov
Author-X-Name-First: Fakhri J.
Author-X-Name-Last: Hasanov
Author-Name: Jeyhun I. Mikayilov
Author-X-Name-First: Jeyhun I.
Author-X-Name-Last: Mikayilov
Author-Name: Muhammad Javid
Author-X-Name-First: Muhammad
Author-X-Name-Last: Javid
Author-Name: Moayad Al-Rasasi
Author-X-Name-First: Moayad
Author-X-Name-Last: Al-Rasasi
Author-Name: Frederick Joutz
Author-X-Name-First: Frederick
Author-X-Name-Last: Joutz
Author-Name: Mohammed B Alabdullah
Author-X-Name-First: Mohammed B
Author-X-Name-Last: Alabdullah
Title: Sectoral employment analysis for Saudi Arabia
Abstract: 
 This study aims to explore the impact of output and wage on labour demand in Saudi Arabia at sectoral level. We applied cointegration and equilibrium correction methods to the time-series data of 10 sectors over 1995–2016 using the demand side framework and considering the structural breaks in the data. We found that in the long run, the employment is positively affected by the output while the impact of the wage was negative in all sectors. In the short-run, employment growth in all sectors reacted to the wage growth except for the government sector. While only some sectors responded to the output growth, we also found that employment can adjust to the desired equilibrium level in all sectors but time horizon for the adjustment processes varies across the sectors. Differences in estimated coefficients imply that policies should be sector-specific as a ‘one-fits-all’ policy would fail to consider the sectoral specificities.
Journal: Applied Economics
Pages: 5267-5280
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922590
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922590
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5267-5280




Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey (Jun) Chen
Author-X-Name-First: Jeffrey (Jun)
Author-X-Name-Last: Chen
Author-Name: Fariz Huseynov
Author-X-Name-First: Fariz
Author-X-Name-Last: Huseynov
Author-Name: Bochen Li
Author-X-Name-First: Bochen
Author-X-Name-Last: Li
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Title: Local risk preference and corporate policies: evidence from M&A
Abstract: 
 This article examines whether and how the firms’ mergers and acquisitions (M&A) policies are influenced by the risk preference of local community where the firms’ headquarters are located. By utilizing the different preferences towards risk-taking from the county-level religiosity-based measure, we document a significantly positive relation between the local risk preference and the likelihood of firms’ M&A. Firms whose headquarters are located in the counties with a higher degree of risk tolerance are more likely to engage in takeovers or acquire riskier targets. Local risk preference also results in wealth transfer during M&A that reduces acquirers’ equity value. When interacting with firm CEOs’ career concern and financial compensation, we find that managerial risk-taking incentive can be significantly affected by the local risk preference, suggesting an important economic interplay between the social norms and financial decision-making.
Journal: Applied Economics
Pages: 5158-5176
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1921688
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1921688
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5158-5176




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Gravel
Author-X-Name-First: Nicolas
Author-X-Name-Last: Gravel
Author-Name: Edward Levavasseur
Author-X-Name-First: Edward
Author-X-Name-Last: Levavasseur
Author-Name: Patrick Moyes
Author-X-Name-First: Patrick
Author-X-Name-Last: Moyes
Title: Evaluating education systems
Abstract: 
 This paper proposes two dominance criteria for evaluating education systems described as joint distributions of the pupils’ cognitive skill achievements and family backgrounds. The first criterion is the smallest transitive ranking of education systems compatible with three elementary principles. The first principle requires the favorable recording of any improvement in the cognitive skill of a child with a given family background . The second principle demands that any child’s cognitive skill be all the more favourably appraised as the child is coming from an unfavourable background. The third principle states that when two different skills and family backgrounds are allocated between two children, it is preferable that the high skill be given to the low background child than the other way around. Our second criterion adds to the three principles the elitist requirement that a mean-preserving spread in the skills of two children with the same background be recorded favorably. We apply our criteria to the ranking of education systems of 43 countries, where we measure cognitive skills by PISA score in mathematics and famly background by the largest of the two parents’International Socio Economic Index. Our criteria conclusively compare about 19% of all the possible pairs of countries..
Journal: Applied Economics
Pages: 5177-5207
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922586
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922586
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5177-5207




Template-Type: ReDIF-Article 1.0
Author-Name: Yinxiao Chu
Author-X-Name-First: Yinxiao
Author-X-Name-Last: Chu
Author-Name: Xiaoyu Huang
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Huang
Author-Name: Tao Jin
Author-X-Name-First: Tao
Author-X-Name-Last: Jin
Title: Political relations and tourism: evidence from China
Abstract: 
 This paper provides empirical evidence on how political relations affect the tourism market. We use monthly data to identify the pattern of short-lived effects of political shocks in the tourism market. A political relation shock has an immediate effect on Chinese outbound tourism, and then the effect is amplified in the next month before it vanishes in the following months. Particularly, the negative political shocks, namely political disputes, are responsible for most of the effects on outbound tourism. Moreover, we investigate the specific mechanism in China through which political relation shocks affect outbound tourism. We find that government interference by issuing travel warnings plays a crucial role in the mechanism. Further analysis on tourists’ demand shows that deterioration in political relations itself has no direct effects on tourists’ demand. However, when accompanied by the issuance of travel warnings, the negative political shocks significantly reduce tourists’ willingness to travel to the opposing countries.
Journal: Applied Economics
Pages: 5281-5302
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922591
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922591
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5281-5302




Template-Type: ReDIF-Article 1.0
Author-Name: Qi Cui
Author-X-Name-First: Qi
Author-X-Name-Last: Cui
Author-Name: Bo Yuan
Author-X-Name-First: Bo
Author-X-Name-Last: Yuan
Author-Name: Yexin Zhou
Author-X-Name-First: Yexin
Author-X-Name-Last: Zhou
Author-Name: Hao Chen
Author-X-Name-First: Hao
Author-X-Name-Last: Chen
Author-Name: Yuanning Hu
Author-X-Name-First: Yuanning
Author-X-Name-Last: Hu
Title: Will bad air quality affect the siting of foreign-invested manufacturing enterprises? The evidence from China
Abstract: 
 Albeit notably increasing studies dedicated to investigating the impact of air pollution on enterprises’ productivity and profit, few have oriented onto explicitly probing how the enterprises, particularly those foreign-invested firms, made their location choices concerning air quality. Accordingly, this study contributes to explain the impact of air pollution on the site selection of foreign-invested manufacturing enterprises with a unique firm-level dataset of China. The study also discloses the heterogeneity of air pollution effects attributable to enterprises’ various features regarding ownership property, host country, industrial classification, and investment scale. Our result justifies a statistically significant and negative impact of air pollution on the siting of foreign-invested manufacturing enterprises. The heterogeneous effects of air pollution manifest that the location choice would be remarkably more sensitive for the sole-venture enterprises, and for those headquartered in developed countries, engaged in high-technology industries, and at small and medium investment scales. The study finds that the siting of small-scale firms in high-technology sectors appears to be the most sensitive to air pollution, signifying that air pollution severity would be a pivotal factor pushing aside high-quality foreign-invested enterprises to invest in polluted areas in general.
Journal: Applied Economics
Pages: 5221-5241
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922588
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922588
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5221-5241




Template-Type: ReDIF-Article 1.0
Author-Name: Alejandro Esteller-Moré
Author-X-Name-First: Alejandro
Author-X-Name-Last: Esteller-Moré
Author-Name: Leonzio Rizzo
Author-X-Name-First: Leonzio
Author-X-Name-Last: Rizzo
Author-Name: Riccardo Secomandi
Author-X-Name-First: Riccardo
Author-X-Name-Last: Secomandi
Title: The role of tax system complexity on foreign direct investment
Abstract: 
 We present new cross-country empirical evidence that tax system complexity affects the location of international investment. The evidence comes from a database of foreign direct investment (FDI) bilateral flows for all OECD countries over the 2013–2016 period, and from the Doing Business survey, which collects several measures of tax system complexity and effective tax rates. By means of a gravity model, we consider the impact of destination and parent country characteristics on firm investment decisions. An increase in the difference between tax complexity in the home country and the destination country is related with an increase in FDI outflows from home to destination. We do not find any significant impact of tax rate differentials on FDI outflows.
Journal: Applied Economics
Pages: 5208-5220
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922587
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922587
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5208-5220




Template-Type: ReDIF-Article 1.0
Author-Name: Sanket Mohapatra
Author-X-Name-First: Sanket
Author-X-Name-Last: Mohapatra
Author-Name: Siddharth M. Purohit
Author-X-Name-First: Siddharth M.
Author-X-Name-Last: Purohit
Title: The implications of economic uncertainty for bank loan portfolios
Abstract: 
 This paper analyzes the impact of economic uncertainty on the composition of bank credit across household and firm loans. Using bank-level data spanning 40 developed and developing countries, we find that higher economic uncertainty is associated with an increase in the relative share of household credit in the loan portfolio of banks. This change in composition of credit may result from banks’ efforts to reduce the overall riskiness of their loan portfolios, since corporate loans are generally viewed as riskier than household loans. This shift is more pronounced for weakly-capitalized banks, which may face greater risks during economic shocks, and for larger banks, which may be riskier due to complex business models and more market-based activities. The variation in our main findings by banks’ capitalization and size suggests that they partly arise from bank-specific factors in response to greater uncertainty. The baseline results hold for a range of robustness tests. Our study highlights the role of aggregate uncertainty in micro-level outcomes and is relevant for bank capital regulation and the conduct of macroprudential policy.
Journal: Applied Economics
Pages: 5242-5266
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922589
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922589
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5242-5266




Template-Type: ReDIF-Article 1.0
Author-Name: Shuzhong Ma
Author-X-Name-First: Shuzhong
Author-X-Name-Last: Ma
Author-Name: Chao Fang
Author-X-Name-First: Chao
Author-X-Name-Last: Fang
Title: The Effect of Online Search on International Trade
Abstract: 
 In the literature, search engines are considered as effective tools for obtaining information. However, little attention has been paid to the effect of search engines on international trade even though information (barrier) is very important in international trade. To address this issue, we analyse how online search, proxied by Google Trends Interest by Region (GTIR), affects international trade in a classic gravity model. Our results show that online search intensity between the two countries can significantly promote international trade. This finding is robust to a wide range of tests, including instrumental variable estimation, different specifications and different estimators. Mechanism analysis shows that online search is likely to increase trade by overcoming unfamiliarity and reducing trade risks. Since the role of online search is similar to that of traditional networks, we further conduct extended analysis and find that online search is likely to substitute, rather than complement, migration networks in international trade. Since many traditional networks are broken due to the pandemic, online search is promising to become increasingly important in the future.
Journal: Applied Economics
Pages: 5369-5384
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922593
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922593
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5369-5384




Template-Type: ReDIF-Article 1.0
Author-Name: Jin Xu
Author-X-Name-First: Jin
Author-X-Name-Last: Xu
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: The effects of tax and fee reduction policy on mitigating shock of the COVID-19 epidemic in China
Abstract: 
 The lockdown measures taken by the Chinese government have proven to be an effective approach to prevent COVID-19, but have a major negative impact on the economy. The Chinese government quickly implemented a large-scale tax and fee reduction policy to hedge against negative shocks. In light of these facts, this article constructs a multi-regional dynamic-recursive computable general equilibrium (CGE) model to evaluate the short-term and medium-term effects of COVID-19 on the macroeconomy, energy and environment. The results show that: (1) Without adopting tax incentives, GDP, residents’ consumption, exports, and secondary and tertiary industry output will grow weakly in 2020. Leapfrogging development will occur in 2021, whereas import volume and consumer price index will drop sharply. (2) If the tax reduction policy is introduced, GDP will increase by 2.83% and 7.4% in 2020 and 2021. Imports, exports, and output of the secondary and tertiary industries will grow substantially, along with a significant rise in fossil fuels consumption and carbon emission. (3) Hubei, the worst hit by COVID-19, will quickly resume normal development.
Journal: Applied Economics
Pages: 5303-5318
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1904119
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904119
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5303-5318




Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Wehner
Author-X-Name-First: Caroline
Author-X-Name-Last: Wehner
Author-Name: Trudie Schils
Author-X-Name-First: Trudie
Author-X-Name-Last: Schils
Title: Who are the low educational achievers? An analysis in relation to gender, emotional stability and conscientiousness
Abstract: 
 Low educational qualification, i.e. reaching no or only a very basic educational degree, substantially decreases an individual’s prospects on todays labour market. Emotional stability and conscientiousness are known to be predictive of educational achievement. Nevertheless, the moderating role of these two personality traits on the outcome of low educational qualification, and the interaction with gender are far less explored. In this paper, we use rich data from the British Cohort Study 1970 to analyse the relationship between personality measured in adolescence and educational achievement in adulthood. Our results show that less emotionally stable and less conscientious females have the highest risk of reaching only a low educational qualification. In contrast, more emotionally stable and less conscientious males face an above average risk of reaching a low educational qualification. Our results suggest that neglecting gender differences in the moderating relation of these two personality traits on low educational achievement is likely misleading.
Journal: Applied Economics
Pages: 5354-5368
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922592
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922592
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5354-5368




Template-Type: ReDIF-Article 1.0
Author-Name: Jing Guan
Author-X-Name-First: Jing
Author-X-Name-Last: Guan
Author-Name: J.D. Tena
Author-X-Name-First: J.D.
Author-X-Name-Last: Tena
Title: Estimating the effect of physical exercise on juveniles’ health status and subjective well-being in China
Abstract: 
 Despite the increasing interest in analysing determinants of health status and subjective well-being, existing research has been mainly confined to developed countries’ adult population. This paper estimates the effect of physical exercise on the health and happiness of Chinese adolescent. Using a comprehensive database from the China Education Panel Survey (number of observations: 5975), different methodologies, including instrumental variable and propensity score matching approaches, are applied. We find that physical exercise has a significantly positive effect on health. Our results also suggest some evidence of a positive impact of exercise on well-being. This effect is robust to different econometric approaches, exercise participation measurements, and characteristics of students and schools and families. However, exercise benefits become evident even when it is practised with low frequency, i.e. one day per week. Moreover, physical exercise exerts a higher impact on students with poorer health and higher levels of unhappiness. Our results highlight the beneficial impact of political decisions aiming to incentivize physical exercise to improve adolescents’ health status in developing countries.
Journal: Applied Economics
Pages: 5385-5396
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922594
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922594
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5385-5396




Template-Type: ReDIF-Article 1.0
Author-Name: Yongwoong Lee
Author-X-Name-First: Yongwoong
Author-X-Name-Last: Lee
Author-Name: Yongbok Cho
Author-X-Name-First: Yongbok
Author-X-Name-Last: Cho
Author-Name: Kisung Yang
Author-X-Name-First: Kisung
Author-X-Name-Last: Yang
Title: Optimal look-back period for adequate and less procyclical credit capital forecasts
Abstract: 
 This study presents an approach to determining the optimal look-back period for adequate and less procyclical credit capital requirement forecast of U.S. commercial banking system under the regulatory framework. The approach conducts rolling window estimations together with back-tests and procyclicality checks for various sizes of sample windows and portfolio aggregation methods. The empirical results first show that capital requirement forecasts from shorter-term samples are more adequate but more procyclical compared to those from longer-term samples. Second, the forecasts based on stand-alone method are more adequate than those taking diversification into account. Third, tail dependence is inevitable for diversification methods to satisfy the adequacy. Finally, based on these findings, the sample of two business cycles, twice that of the Basel Committee’s minimum requirement of the historical observation period for internal rating grade, provides micro-prudentially the most adequate and macro-prudentially less procyclical credit capital forecasts in the U.S. commercial banking system.
Journal: Applied Economics
Pages: 5337-5353
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1914317
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1914317
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5337-5353




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Michela Dickson
Author-X-Name-First: Maria Michela
Author-X-Name-Last: Dickson
Author-Name: Giuseppe Espa
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Espa
Author-Name: Roberto Gabriele
Author-X-Name-First: Roberto
Author-X-Name-Last: Gabriele
Author-Name: Andrea Mazzitelli
Author-X-Name-First: Andrea
Author-X-Name-Last: Mazzitelli
Title: Small businesses and the effects on the growth of formal collaboration agreements: additional insights and policy implications
Abstract: 
 The paper studies the impact of formal collaboration agreements (FCA) on firms’ growth in Italy. To conduct a proper evaluation exercise, we started building a novel database of Italian firms where networked firms in 2012 (treated units) are matched with firms that did not subscribe to a formal network agreement (controls units) but possess similar observable characteristics. Then we use difference-in-differences regression models in which we employ time lags in the relationships between objective variables and control ones. We show that FCAs have a positive effect and can be interpreted as a valid means to reduce the cognitive distance from the market of firms. Moreover, the effect is mainly due to a defensive strategy. The effect is stronger for those firms that do not exploit other proximity types, namely geographical and organizational. Finally, structural characteristics play a role: younger and smaller firms avoid a ‘size contraction’ signing an FCA.
Journal: Applied Economics
Pages: 5397-5414
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922595
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922595
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5397-5414




Template-Type: ReDIF-Article 1.0
Author-Name: David Enck
Author-X-Name-First: David
Author-X-Name-Last: Enck
Author-Name: Mario Beruvides
Author-X-Name-First: Mario
Author-X-Name-Last: Beruvides
Author-Name: Víctor G. Tercero-Gómez
Author-X-Name-First: Víctor G.
Author-X-Name-Last: Tercero-Gómez
Author-Name: Alvaro E. Cordero-Franco
Author-X-Name-First: Alvaro E.
Author-X-Name-Last: Cordero-Franco
Title: Using statistical process monitoring to identify us business cycle change points and turning points
Abstract: 
 The Business Cycle paradigm of Mitchell and Burns has evolved from their original goal of understanding the entire economic process to the binary identification of growth and recessionary Turning Points. We propose a new paradigm for modelling the Business Cycle based on the Statistical Process Monitoring technique of Self-Starting Cumulative Sum (SSCUSUM) control charts. The SSCUSUM charts provide continuous characterization of aggregate economic activity through the identification of changes in the mean or standard deviation of economic indicators. A case study is conducted using real GDP % growth between 1965 and 2020 which shows that SSCUSUM charts: identify periods of steady state performance with statistically differentiable means and/or standard deviations, reliably reproduce the National Bureau of Economic Research Business Cycle Turning Points, identify patterns of economic activity leading up to and away from recessions, and identify twice the information on economic performance as the current bivariate approach. Over the study period, the SSCUSUM method identifies 42 changes in the mean or standard deviation of real GDP % growth, while the NBER TPs identify 8 peaks and 7 troughs.
Journal: Applied Economics
Pages: 5319-5336
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1908514
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1908514
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5319-5336




Template-Type: ReDIF-Article 1.0
Author-Name: Zhiyong Cheng
Author-X-Name-First: Zhiyong
Author-X-Name-Last: Cheng
Author-Name: Jun Deng
Author-X-Name-First: Jun
Author-X-Name-Last: Deng
Author-Name: Tianyi Wang
Author-X-Name-First: Tianyi
Author-X-Name-Last: Wang
Author-Name: Mei Yu
Author-X-Name-First: Mei
Author-X-Name-Last: Yu
Title: Liquidation, leverage and optimal margin in bitcoin futures markets
Abstract: 
 Using the generalized extreme value theory to characterize tail distributions, we address liquidation, leverage and optimal margins for bitcoin long and short futures positions. The empirical analysis of perpetual bitcoin futures on BitMEX shows that (1) daily forced liquidations to outstanding futures are substantial at 3.51% and 1.89% for long and short; (2) investors got forced liquidation do trade aggressively with average leverage of 60X; and (3) exchanges should elevate current 1% margin requirement to 33% (3X leverage) for long and 20% (5X leverage) for short to reduce the daily margin call probability to 1%. Our results further suggest that normality assumption on return significantly underestimates optimal margins. Policy implications are also discussed.
Journal: Applied Economics
Pages: 5415-5428
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922597
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922597
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5415-5428




Template-Type: ReDIF-Article 1.0
Author-Name: Hongyun Zheng
Author-X-Name-First: Hongyun
Author-X-Name-Last: Zheng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Xiaoshi Zhou
Author-X-Name-First: Xiaoshi
Author-X-Name-Last: Zhou
Title: Renting-in cropland, machinery use intensity, and land productivity in rural China
Abstract: 
 This study examines the impacts of renting-in cropland on machinery use intensity, utilizing an innovative endogenous-treatment Poisson regression (ETPR) model and survey data from wheat farmers in China. We also analyse how machinery use intensity affects land productivity, reflected by wheat yields and net returns, using a two-stage residual inclusion (2SRI) model. Unlike previous studies that consider general machinery use, this study considers self-owned machinery use intensity and purchased machinery service use intensity. The ETPR model results reveal that renting-in cropland significantly increases self-owned machinery use intensity. However, it has a negative and insignificant impact on purchased machinery service use intensity. The 2SRI model estimates show that increasing self-owned machinery use intensity and purchased machinery service use intensity significantly increases wheat yields and net returns. Our findings suggest that it is essential to take stakeholders’ land transfer status into account when designing policies to promote agricultural mechanization and enhance land productivity.
Journal: Applied Economics
Pages: 5503-5517
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923642
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923642
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5503-5517




Template-Type: ReDIF-Article 1.0
Author-Name: Fanzheng Yang
Author-X-Name-First: Fanzheng
Author-X-Name-Last: Yang
Author-Name: Weiwei Weng
Author-X-Name-First: Weiwei
Author-X-Name-Last: Weng
Title: Are only-children difficult team members?
Abstract: 
 The ever-increasingly complex economic activities across all industries have rendered teamwork a ubiquitous feature of the modern economy. Selecting the right employees, however, is conceived to be an ever more challenging task in the presence of an increasing number of adult only- children, who are widely perceived to be spoilt, self-centred and thus with weak team spirit. Our experimental study reassesses such negative stereotype by investigating only children’s participation willingness and their commitment to a group effort. Only children are found to contribute as much as their counterparts with siblings to the group effort although with slightly weaker willingness to join. Furthermore, the provision of peer information about relative performance is found to be significantly more effective in incentivizing only children than non-only children on both their willingness to participate in teamwork and their contribution to a group effort. Together, our findings suggest that only children can outperform their counterparts with siblings in teamwork as the uncertainty of team productivity is reduced by the introduction of feedback information.
Journal: Applied Economics
Pages: 5462-5476
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923637
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923637
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5462-5476




Template-Type: ReDIF-Article 1.0
Author-Name: Sanghyun Hwang
Author-X-Name-First: Sanghyun
Author-X-Name-Last: Hwang
Author-Name: Kadir Nagac
Author-X-Name-First: Kadir
Author-X-Name-Last: Nagac
Title: Religiosity and Tax Compliance: Evidence from U.S. Counties
Abstract: 
 The intention of this paper is to analyse religiosity as a factor that potentially affects tax compliance. Studies in the 1990s have shown that the puzzle of tax compliance is ‘why so many individuals pay their taxes’ and not ‘why people evade taxes.’ It has been noted that compliance cannot be entirely explained by the level of enforcement. Countries set the levels of audit and penalty so low that most individuals would evade taxes if they were rational, because it is unlikely that cheaters will be caught and penalized. Nevertheless, a high degree of compliance is observed. Therefore, studies that analyse a variety of factors other than detection and punishment are need. Religiosity can play an important role in determining one’s tax compliance decision. We use religious adherence data from the American Religious Data Archive and measure tax compliance as a discrepancy in reported income between Internal Revenue Service and Census data to analyse independent effects of church adherence rates on tax compliance in the United States at the county level. To our knowledge, this paper is the first study that analyzes the effect of religiosity on actual tax compliance behaviour.
Journal: Applied Economics
Pages: 5477-5489
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923638
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923638
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5477-5489




Template-Type: ReDIF-Article 1.0
Author-Name: Noam Tanner
Author-X-Name-First: Noam
Author-X-Name-Last: Tanner
Author-Name: Danielle Zanzalari
Author-X-Name-First: Danielle
Author-X-Name-Last: Zanzalari
Author-Name: Mark Manion
Author-X-Name-First: Mark
Author-X-Name-Last: Manion
Author-Name: Eric Haavind-Berman
Author-X-Name-First: Eric
Author-X-Name-Last: Haavind-Berman
Title: Demand elasticity for deposit services at U.S. retail banks in high and low rate environments
Abstract: 
 Using techniques from industrial organization, we capture the sensitivity of deposit balances to own and competitor pricing by estimating demand functions in U.S. retail deposit markets. The demand functions are used to compute elasticities of demand for bank deposits in order to study the relative importance of deposit rates over different interest rate environments. We find that the magnitudes of own- and cross-price elasticities are higher in high rate periods (when the federal funds rate is above 2%) than in low rate periods. We also compare different sized firms and find that smaller firms’ elasticities are more sensitive to the interest rate cycle.
Journal: Applied Economics
Pages: 5448-5461
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923636
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923636
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5448-5461




Template-Type: ReDIF-Article 1.0
Author-Name: Liping Zou
Author-X-Name-First: Liping
Author-X-Name-Last: Zou
Author-Name: Anne De Bruin
Author-X-Name-First: Anne
Author-X-Name-Last: De Bruin
Author-Name: Ji Wu
Author-X-Name-First: Ji
Author-X-Name-Last: Wu
Author-Name: Yue Yuan
Author-X-Name-First: Yue
Author-X-Name-Last: Yuan
Title: Art for art’s sake? An exploration of the Chinese art market
Abstract: 
 We investigate the price impact and returns for 165,847 lots sold from 533 artists executed on Chinese painting and calligraphy over the period of 2000–2017. We document an annual return of 10.67% for our sample artworks, with certain attributes carrying greater price impacts, including authenticity, mounting, time of creation, the month of sales, and the auction houses. Our results also reveal two art market booms, with the first peak in 2005, subsequently reaching the record peak in 2011. In addition, compared with other investment assets, Chinese painting and calligraphy yield a relatively higher return compared to other investment assets. The artwork has a relatively lower correlation with other assets, suggesting potential diversification benefits. The average holding period of Chinese painting and calligraphy is about three years, in stark contrast to an average 10-year turnover of art in Western countries. This provides strong evidence that excessive speculative activities exist in the Chinese art market. Thus, art market participants in China need to be aware of the risk associated with art investments, as art is not necessarily for art’s sake.
Journal: Applied Economics
Pages: 5429-5447
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923635
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923635
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5429-5447




Template-Type: ReDIF-Article 1.0
Author-Name: Tian-Tian Zhu
Author-X-Name-First: Tian-Tian
Author-X-Name-Last: Zhu
Author-Name: Hua-Rong Peng
Author-X-Name-First: Hua-Rong
Author-X-Name-Last: Peng
Author-Name: Yue-Jun Zhang
Author-X-Name-First: Yue-Jun
Author-X-Name-Last: Zhang
Author-Name: Jing-Yue Liu
Author-X-Name-First: Jing-Yue
Author-X-Name-Last: Liu
Title: Does higher education development facilitate carbon emissions reduction in China
Abstract: 
 Based on the data of 31 provinces in China during 2004–2015 and the models of panel threshold regression and panel quantile regression, this paper investigates the impact of China’s higher education on regional carbon emissions. The results indicate that there exists threshold effect of both China’s higher education scale and quality on regional carbon emissions per capita. Specifically, in terms of higher education scale, its further progress may facilitate the positive effect on carbon emissions per capita when technology is above threshold. As for higher education quality, its further growth may moderate the positive effect on carbon emissions per capita when income exceeds threshold; it also can promote its constrained effect on carbon emissions per capita when exceeding the technology threshold; and the continuous improvement of higher education quality may help to reduce carbon emissions per capita. Besides, the positive impact of higher education scale on carbon emissions per capita appears smaller in regions with more carbon emissions per capita; meanwhile, only in the regions with larger carbon emissions per capita, may higher education quality promote carbon emissions per capita, while the curbing impact of technology level is relatively constant among different regions with various carbon emissions.
Journal: Applied Economics
Pages: 5490-5502
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923641
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923641
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5490-5502




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Chi Yin
Author-X-Name-First: Chi
Author-X-Name-Last: Yin
Author-Name: Min-Rui Choo
Author-X-Name-First: Min-Rui
Author-X-Name-Last: Choo
Title: Do firm characteristics affect debt capacity? Evidence in CEO succession
Abstract: 
 Should firms decrease or increase their debt capacity after professional CEO succession? Examining a sample of all publicly traded firms from 1991 to 2016 in Taiwan, this research finds that firms with professional CEO successors tend to raise less debt and consider the succession of professional managers to be more conservative because they are afraid of being monitored more severely. From the perspectives of firms’ characteristics, those with professional CEO successors and high cash holdings and investment levels are more likely to increase their debt capacity, while those of a larger size and higher post-succession profitability volatility decrease their ability at raising debt. Finally, we hand-collect data and develop a novel method to identify the real founders and reconfirm our empirical evidence. Our findings present financial implications for boards of directors which they can evaluate firms’ cash holdings, investment level, firm size, and profit volatility before deciding on whether to name a CEO successor to take over their firms.
Journal: Applied Economics
Pages: 5567-5583
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1925626
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925626
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5567-5583




Template-Type: ReDIF-Article 1.0
Author-Name: Peng Nie
Author-X-Name-First: Peng
Author-X-Name-Last: Nie
Author-Name: Qing Li
Author-X-Name-First: Qing
Author-X-Name-Last: Li
Author-Name: Alan A. Cohen
Author-X-Name-First: Alan A.
Author-X-Name-Last: Cohen
Author-Name: Alfonso Sousa-Poza
Author-X-Name-First: Alfonso
Author-X-Name-Last: Sousa-Poza
Title: In search of China’s income-health gradient: a biomarker-based analysis
Abstract: 
 Using data from the 1991–2009 China Health and Nutrition Survey, this study investigates China’s income-health gradient by analysing the effect of both current and long-term household income on 22 blood-based biomarkers, 4 used as individual variables and all 22 assessed as a composite. We employ estimation approaches that allow for analysis ‘beyond the mean’ and accounting for individual-specific unobserved heterogeneity. After applying a two-step residual inclusion estimator, we find limited evidence of an income-health gradient irrespective of whether the income measure is current or long term. Because risky behaviour may attenuate income’s positive effects on health, we also analyse the associations between income and such health-influencing factors as alcohol consumption, smoking, diet, physical activity, and dietary knowledge. Although we find that higher incomes go hand-in-hand with some of these factors (in particular, a higher number of cigarettes smoked per day), they also promote poorer diets. However, the fact that these effects are small, dependent on income measure, and susceptible to reporting biases makes it unlikely that they are attenuating income’s potentially positive effects on health. Our findings highlight the importance of considering more accurate measures of health in assessing income-health gradients in future research.
Journal: Applied Economics
Pages: 5599-5618
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927962
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927962
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5599-5618




Template-Type: ReDIF-Article 1.0
Author-Name: Khalid Ahmed
Author-X-Name-First: Khalid
Author-X-Name-Last: Ahmed
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Sudharshan Reddy Paramati
Author-X-Name-First: Sudharshan Reddy
Author-X-Name-Last: Paramati
Title: Electricity consumption in Australia: the role of clean energy in reducing CO2 emissions
Abstract: 
 Electricity consumption is the primary source of carbon dioxide (CO2) emissions in Australia. Hence, this research study aims to analyse the role of clean energy consumption on CO2 emissions and electricity consumption in Australia by making use of yearly data, 1980–2014 and a battery of time series econometric techniques. The autoregressive distributed lag (ARDL) method is employed to investigate the short- and long-run estimates, while the Bayer and Hanck (2013) test is used to examine the cointegration relationship among the variables. The results from the ARDL technique show that a 1% increase in clean energy consumption reduces per capita CO2 emissions and per capita electricity consumption by 5.50% and 1.19%, respectively in the long-run. The findings also confirm a significant long-run association among the variables. As such, it is emphasized that the government should take further initiatives towards a wider deployment of clean energy use, along with sustainable urbanization to reduce per capita electricity consumption and CO2 emissions in Australia.
Journal: Applied Economics
Pages: 5535-5548
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1925080
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925080
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5535-5548




Template-Type: ReDIF-Article 1.0
Author-Name: Dominik Schreyer
Author-X-Name-First: Dominik
Author-X-Name-Last: Schreyer
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: Predicting season ticket holder no-show behaviour: more nuanced evidence from Switzerland
Abstract: 
 In this article, we contribute to the emerging literature on the potential determinants of football spectator no-show behaviour by analysing disaggregated data capturing season ticket holder (STH) behaviour outside the German market for the first time. Intriguingly, our empirical analysis of a unique panel dataset – containing distinct admission decisions made by 8,734 STHs of an established Swiss Super League club on 72 consecutive matchdays between 2013 and 2016 – suggests that the antecedents of such no-show behaviour might be contextual, despite some notable similarities across markets. For instance, although we observe a robust role of both a STH’s emerging no-show habits and his/her geographical distance to the stadium in predicting spectator no-show behaviour that is in line with previous research, we also note a more nuanced, i.e. non-linear, relationship between a STH’s age and the tendency to omit attendance on matchday. Here, using three-dimensional contour plots to represent potential interactions with age graphically, we also observe that STHs in the age cohort around 35 to 65 are more affected by barriers in the form of distance to the place of residence or temperature compared to people of retirement age, for whom there is a very robust pattern of habit.
Journal: Applied Economics
Pages: 5549-5566
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1925081
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925081
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5549-5566




Template-Type: ReDIF-Article 1.0
Author-Name: Wanling Zhong
Author-X-Name-First: Wanling
Author-X-Name-Last: Zhong
Author-Name: Yunjie Fu
Author-X-Name-First: Yunjie
Author-X-Name-Last: Fu
Author-Name: Wei Ma
Author-X-Name-First: Wei
Author-X-Name-Last: Ma
Title: A Revisit on the Validity of the Uncovered Interest Rate Parity-Evidence from Time-Varying Parameter Models
Abstract: 
 This paper develops two time-varying parameter uncovered interest parity (TVP-UIP) models and studies their validity in both developed and emerging countries. Compared to the traditional models, TVP-UIP models can successfully capture dynamic relationships and help to explain the UIP puzzle. Empirical results show that the coefficients vary substantially over time and the UIP relationship can be regarded as a dynamic equilibrium process especially in emerging economies. The UIP hypothesis holds in several periods and can be significantly affected by specific major events, such as the financial crises and the recovery policies in response to it, or the US monetary policy changes. The time-varying risk premium attracts great concern in the literature but only plays a limited role in this case. Moreover, the failure of UIP in some periods can be attributable to the persistence inherent in the data, which leads to a long-lasting re-establishment of the UIP relationship after a shock.
Journal: Applied Economics
Pages: 5518-5534
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1924353
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1924353
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5518-5534




Template-Type: ReDIF-Article 1.0
Author-Name: Zhen Huang
Author-X-Name-First: Zhen
Author-X-Name-Last: Huang
Author-Name: Weiwei Gao
Author-X-Name-First: Weiwei
Author-X-Name-Last: Gao
Title: Stock market liberalization and firm litigation risk——A quasi-natural experiment based on the Shanghai-Hong Kong Stock Connect policy
Abstract: 
 Taking the openness of the Shanghai-Hong Kong Stock Connect policy as an exogenous shock, this paper examines how the stock market liberalization affects litigation risks of underlying stock firms and its influencing mechanisms. We use a difference-in-differences (DID) approach to analyse the sample of A-share firms listed on the Shanghai Stock Exchange, and find that the stock market liberalization can better curb litigation risk of the underlying stock firms (i.e. the firms listed on the Shanghai Stock Exchange that can also be traded in the Hong Kong Stock Exchange) than that of the non-underlying stock firms. Further, we provide evidence that the corporate governance mechanism rather than information transmission is the main channel through which stock market liberalization reduces litigation risk of the underlying stock firms. This paper emphasizes the unique role and spillover effects of the stock market liberalization, contributing to the literature on law and finance and the literature on the stock market liberalization.
Journal: Applied Economics
Pages: 5619-5642
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927963
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927963
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5619-5642




Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Huck
Author-X-Name-First: Nicolas
Author-X-Name-Last: Huck
Author-Name: Régis Y. Chenavaz
Author-X-Name-First: Régis Y.
Author-X-Name-Last: Chenavaz
Author-Name: Stanko Dimitrov
Author-X-Name-First: Stanko
Author-X-Name-Last: Dimitrov
Title: Psychological prices at retail gasoline stations: the policies of 0-, 5-, and 9-ending prices
Abstract: 
 Psychological prices are known to impact consumer behaviour and to depend on retailers’ characteristics. Less understood is last digit pricing, especially in the context of retail gasoline stations. We study price endings in the French gasoline market with 11,471 gas stations and 4,775,300 prices for oil companies, supermarkets, and independent retailers during five years. Raw data suggest that 0-ending prices are more expensive. Yet, these last digit effects do not survive careful scrutiny focusing on the individual behaviour/distribution of each gas station. Plus, 9-, 0-, and 5-ending prices are over-represented. Our evidence better informs administrative authorities investigating market irregularities and consumers interested in better deals.
Journal: Applied Economics
Pages: 5584-5598
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1925627
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925627
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5584-5598




Template-Type: ReDIF-Article 1.0
Author-Name: Marta Escalonilla
Author-X-Name-First: Marta
Author-X-Name-Last: Escalonilla
Author-Name: Begoña Cueto
Author-X-Name-First: Begoña
Author-X-Name-Last: Cueto
Author-Name: Maria Jose Perez Villadóniga
Author-X-Name-First: Maria Jose
Author-X-Name-Last: Perez Villadóniga
Title: Long-term effects on youth career of entering the labour market during the Great Recession
Abstract: 
 In this article, we analyse the long-term effects on youth professional careers of entering the Spanish labour market under adverse economic conditions, using administrative data from the Continuous Sample of Working Histories (CSWH) for the period 2007–2017. We follow a cohort approach and estimate a Weighted OLS specification. Results show that cohorts entering the labour market in a recession face long-term consequences both in terms of wages and employment. For less-educated individuals, we find that the main effect is via employment, even blocking their entry into the labour market. For high-educated individuals, instead, we obtain a long-term penalty in terms of wages as well as a reduction in the days worked. The main contribution of this paper is to provide evidence of the long run impact on youth careers of the Great Recession in a segmented labour market.
Journal: Applied Economics
Pages: 5643-5657
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927966
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927966
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5643-5657




Template-Type: ReDIF-Article 1.0
Author-Name: Dwi Budi Santoso
Author-X-Name-First: Dwi Budi
Author-X-Name-Last: Santoso
Title: The impact of industrial development zones designation on the convergence of economic growth in East Java
Abstract: 
 Since 2008, the strategy to concentrate industrial areas in eight regions in East Java has rapidly accelerated economic growth. However, this strategy also increases regional income disparity. Therefore in the last 2019, Indonesian government design a policy through Presidential Decree No.80/2019 to develop additional industrial centres of East Java into sixteen regions. The main objectives of the policy are to improve regional disparities and to maintain high economic growth. Based on this condition, this study aims to evaluate whether this policy can reduce regional income disparities in East Java. This study modifies the Barro-Martin convergence model to assess the new policy. The model is estimated using panel data of 38 regions in East Java from 2010–2019. There are two results in this study; first, the industrial sector can accelerate economic growth; and second, the additional industrial centres policy tends to improve regional income disparity in East Java.
Journal: Applied Economics
Pages: 5731-5737
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931002
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931002
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5731-5737




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Paula Matias Gama
Author-X-Name-First: Ana Paula Matias
Author-X-Name-Last: Gama
Author-Name: Ricardo Emanuel-Correia
Author-X-Name-First: Ricardo
Author-X-Name-Last: Emanuel-Correia
Author-Name: Mário Augusto
Author-X-Name-First: Mário
Author-X-Name-Last: Augusto
Author-Name: Fábio Duarte
Author-X-Name-First: Fábio
Author-X-Name-Last: Duarte
Title: Bringing modernity to prosocial crowdfunding’s campaigns: an empirical examination of the transition to modern sectors
Abstract: 
 This study addresses the successive calls to better understand the contexts of crowdfunding as well as the interplay between social and financial factors in driving lender decisions by deploying economic development theory inspired on the two-sector model. Making recourse to the leading prosocial crowdfunding platform KIVA, this study examines the impact of the business-loan purpose (traditional vs modern) on the success of fundraising campaigns. The results indicate how modern-sector business loan campaigns lead to faster funding from crowdfunding campaigns. Furthermore, when directed towards modern sectors, large loans emerge as more appealing to lenders, indicating how large loans go to financing high-return projects. Female microentrepreneurs gain an advantage over men in both the traditional and modern sectors. However, the comparative advantage of female microentrepreneurs becomes less pronounced among modern-related loan campaigns. Overall, the findings support how the global crowdfunded microfinance ecosystem boosts the transition of poor microentrepreneurs to a modern economy and thereby avoiding development traps, and thus also providing theoretical insights into predicting prosocial lending decisions regarding sectoral choices.
Journal: Applied Economics
Pages: 5677-5694
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927968
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927968
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5677-5694




Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: James William Saunoris
Author-X-Name-First: James William
Author-X-Name-Last: Saunoris
Title: Determinants of homelessness in the U.S.: new hypotheses and evidence
Abstract: 
 This study seeks to provide new insights into factors that influence homelessness in the U.S. by empirically investigating two heretofore effectively unexplored hypotheses as they relate to homelessness. The first hypothesis is that the greater the overall degree of entrepreneurial activity in a given environment, the lower the degree of homelessness. The second hypothesis is that homelessness is a decreasing function of the overall degree of labour market freedom.Panel VAR, Granger causality, and Cholesky forecast-error variance decomposition analyses are undertaken. Overall, strong, empirical support for both hypotheses is obtained. Accordingly, the homelessness rate is found to be a decreasing function of both the overall degree of entrepreneurial activity in a given state and the overall degree of labour market freedom in that state. Hence, it is argued that policies promoting entrepreneurial activity and labour freedom potentially can be useful tools in helping to diminish the degree of homelessness in the U.S.
Journal: Applied Economics
Pages: 5695-5709
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927970
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927970
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5695-5709




Template-Type: ReDIF-Article 1.0
Author-Name: Pavel Ciaian
Author-X-Name-First: Pavel
Author-X-Name-Last: Ciaian
Author-Name: d’Artis Kancs
Author-X-Name-First: d’Artis
Author-X-Name-Last: Kancs
Author-Name: Miroslava Rajcaniova
Author-X-Name-First: Miroslava
Author-X-Name-Last: Rajcaniova
Title: The economic dependency of bitcoin security
Abstract: 
 We studied the extent to which bitcoin blockchain security permanently depends on the underlying distribution of cryptocurrency market outcomes using daily blockchain and bitcoin data for 2014–2019 and employing the autoregressive-distributed lag (ARDL) approach. We tested three equilibrium hypotheses: (i) sensitivity of the bitcoin blockchain to mining reward, (ii) security outcomes of the bitcoin blockchain and the proof-of-work cost, and (iii) the speed of adjustment of the bitcoin blockchain security to deviations from the equilibrium path. Our results suggest that bitcoin price and mining rewards were intrinsically linked to bitcoin security outcomes.The bitcoin blockchain security’s dependency on mining costs was geographically differenced – it was more significant for the global mining leader China than for other world regions. Bitcoin blockchain security tended to revert relatively fast to its equilibrium security level after the input or output of price shocks.
Journal: Applied Economics
Pages: 5738-5755
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931003
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931003
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5738-5755




Template-Type: ReDIF-Article 1.0
Author-Name: Elie Bouri
Author-X-Name-First: Elie
Author-X-Name-Last: Bouri
Author-Name: Kakali Kanjilal
Author-X-Name-First: Kakali
Author-X-Name-Last: Kanjilal
Author-Name: Sajal Ghosh
Author-X-Name-First: Sajal
Author-X-Name-Last: Ghosh
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Author-Name: Tareq Saeed
Author-X-Name-First: Tareq
Author-X-Name-Last: Saeed
Title: Rare earth and allied sectors in stock markets: extreme dependence of return and volatility
Abstract: 
 This study examines the dynamics of return and volatility connectedness between the rare earth stock index and the indexes of clean energy, consumer electronics, telecommunications, healthcare equipment, and aerospace & defence. Using daily data from 25 March 2010 to 25 August 2020, a quantile-based connectedness approach is applied to uncover both average and tail-based connectedness while considering the full sample period and the COVID-19 pandemic days. The results suggest that the interdependence among these indexes changes dramatically at the lower and upper quantiles, suggesting a strong influence of extreme market scenarios on both returns and volatility connectedness dynamics. Higher integration of sectoral indexes is observed during 2010–2012 and the COVID-19 pandemic period. Health care and telecommunication indexes have been consistent transmitters of return and volatility spillovers to other indexes during the full sample period. Consumer electronics and clean technology indexes switch their roles from a net receiver to a net transmitter during pandemic days. The rare earth remains on the recipient’s side consistently. The findings indicate that the ongoing U.S.–China trade embargo has not impacted the return and volatility dynamics of the five sectoral indexes superseding the demand-driven dynamics for rare earth.
Journal: Applied Economics
Pages: 5710-5730
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927971
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927971
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5710-5730




Template-Type: ReDIF-Article 1.0
Author-Name: Qing Li
Author-X-Name-First: Qing
Author-X-Name-Last: Li
Author-Name: Yanrui Wu
Author-X-Name-First: Yanrui
Author-X-Name-Last: Wu
Title: Organization capital, knowledge spillover and firm performance: evidence from chinese manufacturing sector
Abstract: 
 This study explores organization capital and its spillover effects among Chinese manufacturing firms. By linking patent data with China’s annual survey of industrial enterprises database, we examine technological proximity as one potential channel for organizational spillover but find weak evidence. This result is consistent with previous findings from developed countries. In contrast, organization capital is found to generate positive spillover in China when geographical proximity is considered. In other words, it is found that spillover from organization capital is likely among Chinese firms due to geographical proximity rather than technological proximity.
Journal: Applied Economics
Pages: 5658-5676
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927967
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927967
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5658-5676




Template-Type: ReDIF-Article 1.0
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: Ytallo Brito
Author-X-Name-First: Ytallo
Author-X-Name-Last: Brito
Title: The link between public debt and investment: an empirical assessment from emerging markets
Abstract: 
 This paper provides empirical evidence of the relationship between public debt/GDP ratio and investment. Based on panel data analysis considering 24 emerging markets from 1996 to 2018, we investigate the effect of an increase in public debt on investment at three levels: aggregate, private sector, and public sector. Moreover, we consider the possibility of the global financial crisis of 2007–2008 (GFC) has changed the relationship between public debt and investment. We also assess the effect of a public debt/GDP ratio higher than the prudential level of 60% on investment. The findings indicate that an increase in the public debt/GDP ratio has a significant harmful effect on investment. In particular, we observe that after the GFC, the adverse effect of a higher public debt/GDP ratio on investment increased considerably. Moreover, our results show that the highest adverse effect of a rise in the public debt/GDP ratio is on the public sector investment.
Journal: Applied Economics
Pages: 5864-5876
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931008
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931008
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5864-5876




Template-Type: ReDIF-Article 1.0
Author-Name: Hyun Jin Jang
Author-X-Name-First: Hyun Jin
Author-X-Name-Last: Jang
Author-Name: Xiao Pan
Author-X-Name-First: Xiao
Author-X-Name-Last: Pan
Author-Name: Sumin Park
Author-X-Name-First: Sumin
Author-X-Name-Last: Park
Title: Measuring systemic risk with a dynamic copula-based approach
Abstract: 
 This study examines the extent of systemic risk embedded in the credit and equity markets using a conditional value-at-risk (CoVaR) measure. We implement a copula-based CoVaR approach with different perspectives of a dependence structure based on a generalized autoregressive score model. In parallel, we select the credit default swap spread and stock price data of five companies in the financial sector – American Express, BBVA, Goldman Sachs, Morgan Stanley, and Wells Fargo – from 2001 to 2013, and include data on the global financial crisis of 2007–2008. We then divide the data into three time periods: pre-crisis, during the crisis, and post-crisis. We conduct time-varying marginal modelling, and copula parameter estimation, and then compute CoVaR values with the best-fit copula model. Comparative empirical tests provide financial implications for systemic risk management.
Journal: Applied Economics
Pages: 5843-5863
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931007
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931007
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5843-5863




Template-Type: ReDIF-Article 1.0
Author-Name: Ufuk Gunes Bebek
Author-X-Name-First: Ufuk Gunes
Author-X-Name-Last: Bebek
Author-Name: Wentao Li
Author-X-Name-First: Wentao
Author-X-Name-Last: Li
Title: Structural breaks, reserve currency and balance of payments constrained growth: a test of Thirlwall’s Law in the UK (1950-2017)
Abstract: 
 We apply Thirlwall’s law (Thirlwall 1979) to estimate long run growth in the UK. In particular, we develop a new test allowing for potential structural breaks based on 2SLS to remedy potential weaknesses that existed in previous methods. Our results show the UK had different balance of payments positions over different time periods, and its growth has been constrained over the past two decades. We further elaborate on the pound’s changing role as a reserve currency and how this has affected the UK’s external constraint and growth.
Journal: Applied Economics
Pages: 5756-5771
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927965
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927965
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5756-5771




Template-Type: ReDIF-Article 1.0
Author-Name: Yanan Zhang
Author-X-Name-First: Yanan
Author-X-Name-Last: Zhang
Author-Name: Bing Zhu
Author-X-Name-First: Bing
Author-X-Name-Last: Zhu
Title: Stock price contagion effects through investment banks
Abstract: 
 This paper investigates how stock market investors react to non-fraudulent firms that share the same investment bank with fraudulent companies. Using a Chinese sample from the period of 2003 to 2018, we find that firms penalized for IPO or M&A fraud induce stock price declines among non-fraudulent firms which share the same investment banks (non-fraudulent contagion firms). The results also show that stock price declines are more pronounced for low-quality investment banks, and investors impose larger penalties on stock prices when non-fraudulent client firms are of lower earnings quality, weaker corporate governance, and higher information asymmetry. Furthermore, we demonstrate that the non-fraudulent contagion firms are more likely to commit accounting fraud and exhibit inferior long-term post-IPO/post-M&A performance. Overall, the findings indicate an important stock price contagion effect occurring at the investment bank level.
Journal: Applied Economics
Pages: 5793-5811
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931004
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931004
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5793-5811




Template-Type: ReDIF-Article 1.0
Author-Name: Malick Fall
Author-X-Name-First: Malick
Author-X-Name-Last: Fall
Author-Name: Waël Louhichi
Author-X-Name-First: Waël
Author-X-Name-Last: Louhichi
Author-Name: Jean Laurent Viviani
Author-X-Name-First: Jean Laurent
Author-X-Name-Last: Viviani
Title: Forecasting the intra-day eﬀective bid ask spread by combining density forecasts
Abstract: 
 The bid-ask spread refers to the tightness dimension of liquidity and can be used as a proxy for transaction costs. Despite the importance of the bid-ask spread in the financial literature, few studies have investigated its forecastability. We propose a new methodology to predict the bid ask spread by combining density forecasts of two types of models: Multiplicative Errors Models and ARMA-GARCH models. Our method is employed to predict the effective intra-day bid-ask spread series of all shares pertaining to the CAC40 index. Using a one-step-ahead out-of-sample framework, we resort on the Model Confidence Set procedure to classify models and we found that the proposed model appears to beat all the benchmark specifications.
Journal: Applied Economics
Pages: 5772-5792
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1929821
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1929821
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5772-5792




Template-Type: ReDIF-Article 1.0
Author-Name: Viswa Prasad Gada
Author-X-Name-First: Viswa Prasad
Author-X-Name-Last: Gada
Author-Name: Manish Popli
Author-X-Name-First: Manish
Author-X-Name-Last: Popli
Author-Name: Shavin Malhotra
Author-X-Name-First: Shavin
Author-X-Name-Last: Malhotra
Title: Time to complete the due diligence phase in mergers and acquisitions: impact of CEO psychological characteristics
Abstract: 
 The CEO is the chief decision-maker with regard to corporate strategy, and extant literature highlights how CEOs’ psychological characteristics inform firms’ risky strategic choices. In this article, we focus instead on how CEOs’ psychological characteristics might lead to risk-mitigation actions. Building on the regulatory focus theory, we investigate the impact of CEO’s prevention focus on the due diligence process in merger and acquisition (M&A) deals. Using a sample of 339 majority-stake completed M&A deals by public firms from the United Kingdom, we find that CEOs having a stronger prevention focus increases the time these firms take to complete their M&A deals. We also find that this effect is mitigated when firms acquire target firms in related industries.
Journal: Applied Economics
Pages: 5812-5825
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931005
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931005
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5812-5825




Template-Type: ReDIF-Article 1.0
Author-Name: Evrim Akdogu
Author-X-Name-First: Evrim
Author-X-Name-Last: Akdogu
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Title: The impact of debt covenants on earnings announcement returns
Abstract: 
 We study the impact of debt covenants on earnings announcement returns, using event-study methodology, by creating 10 covenant groups and a covenant index. We find that during bad news, whether it stems from a bad earnings surprise based on analyst forecasts or a negative average market reaction, both the index and most covenant groups display a significantly negative impact on announcement returns. For good news, particularly when the market reaction is positive on average, we also observe a significantly positive effect from some covenant groups, but not the index. The strongest impact on returns comes mostly from debt-related covenants such as leverage tests, cross-default clause and debt issue restrictions. Finally, we also show that regardless of firm characteristics, risk measures or exposure to information asymmetry, most covenants have a negative impact on announcement returns for all firms when the news is bad. For the full sample and the good news subsample, however, we find that small, risky firms with high information asymmetry issues are rewarded by the market and vice versa.
Journal: Applied Economics
Pages: 5826-5842
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931006
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931006
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5826-5842




Template-Type: ReDIF-Article 1.0
Author-Name: Christophe Schalck
Author-X-Name-First: Christophe
Author-X-Name-Last: Schalck
Author-Name: Meryem Yankol-Schalck
Author-X-Name-First: Meryem
Author-X-Name-Last: Yankol-Schalck
Title: Predicting French SME failures: new evidence from machine learning techniques
Abstract: 
 The aim of this study is to provide new insights into French small and medium-sized enterprises (SME) failure prediction using a unique database of French SMEs over the 2012–2018 period including both financial and nonfinancial variables. We also include text variables related to the type of activity. We compare the predictive performance of three estimation methods: a dynamic Probit model, logistic Lasso regression, and XGBoost algorithm. The results show that the XGBoost algorithm has the highest performance in predicting business failure from a broad dataset. We use SHAP values to interpret the results and identify the main factors of failure. Our analysis shows that both financial and nonfinancial variables are failure factors. Our results confirm the role of financial variables in predicting business failure, while self-employment is the factor that most strongly increases the probability of failure. The size of the SME is also a business failure factor. Our results show that a number of nonfinancial variables, such as localization and economic conditions, are drivers of SME failure. The results also show that certain activities are associated with a prediction of lower failure probability while some activities are associated with a prediction of higher failure.
Journal: Applied Economics
Pages: 5948-5963
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934389
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934389
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5948-5963




Template-Type: ReDIF-Article 1.0
Author-Name: James A. Giesecke
Author-X-Name-First: James A.
Author-X-Name-Last: Giesecke
Author-Name: Christopher King
Author-X-Name-First: Christopher
Author-X-Name-Last: King
Author-Name: Jason Nassios
Author-X-Name-First: Jason
Author-X-Name-Last: Nassios
Author-Name: Nhi Hoang Tran
Author-X-Name-First: Nhi Hoang
Author-X-Name-Last: Tran
Title: The impact of GST reform on Australia’s state and territory economies
Abstract: 
 We use a multi-regional general equilibrium model and a multi-regional microsimulation model to explore the economic consequences of a Goods and Services Tax (GST) rate rise and broadening of the GST base for Australia’s eight states and territories. We identify the states and territories adversely affected by GST change, and explain the regional structural factors responsible for differences in regional impacts. These findings have policy relevance in the context of Australia’s GST framework, which requires unanimous state and territory support for GST change.
Journal: Applied Economics
Pages: 5929-5947
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934388
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934388
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5929-5947




Template-Type: ReDIF-Article 1.0
Author-Name: Paul Crosby
Author-X-Name-First: Paul
Author-X-Name-Last: Crosby
Title: When does managerial experience matter? Evidence from Major League Baseball
Abstract: 
 In the world of professional sports, a manager’s ability to influence team success is often questioned. This study exploits a unique feature of Major League Baseball (MLB), which has different rules of play depending on what league a team is in, to examine whether managerial impact is driven by the level of responsibility they are given over in-game decision making. Using 47 seasons of MLB data, we find evidence that the development of human capital in the form of on-the-job experience and exposure to prior success is only beneficial when managers are employed in more complex decision-making environments. The results of this study have ramifications on the hiring decisions, both in terms of personnel choice and remuneration, of professional sports organizations.
Journal: Applied Economics
Pages: 5877-5882
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1931009
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931009
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5877-5882




Template-Type: ReDIF-Article 1.0
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Title: Study of total factor productivity on China’s science and technology service industry: provincial efficiency comparatively using 2010-2019 data
Abstract: 
 This research describes the industries’ development and efficiency distribution, investigates the process of industry efficiency influence of these industries’ agglomeration effect on total factor productivity (TFP) change based China’s science and technology service industries from 2010 to 2019 data. We analyse the main factors influencing TFP change and the stage effect difference of significant factors through using linear and non-linear regression equations by construct the panel regression equations. The empirical results show:1) the overall trend of science and technology service industry agglomeration in China is declining; 2) Provinces and regions exhibits a trend of respective agglomeration within the economic belt; 3) the different location entropies of the five regions lead to obvious differences in the development stages; 4) the influences of technology progress and foreign trade on TFP efficiency changes are generally significant; 5)Science and technology service industry have improved industrial efficiency in the central and western regions and made it easier for these regions to break through bottlenecks. We conclude that industrial efficiency improvements should be based on technology upgrading and expansion in infrastructure allocation, also offering more realistic solutions to promote system construction and interregional policy coordination.
Journal: Applied Economics
Pages: 5917-5928
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1931658
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931658
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5917-5928




Template-Type: ReDIF-Article 1.0
Author-Name: Jennifer Brodmann
Author-X-Name-First: Jennifer
Author-X-Name-Last: Brodmann
Author-Name: Charles Danso
Author-X-Name-First: Charles
Author-X-Name-Last: Danso
Author-Name: Surendranath Rakesh Jory
Author-X-Name-First: Surendranath Rakesh
Author-X-Name-Last: Jory
Author-Name: Thanh Ngo
Author-X-Name-First: Thanh
Author-X-Name-Last: Ngo
Title: The value added by private equity in mergers and acquisitions by financial institutions
Abstract: 
 We compare and contrast (i) mergers and acquisitions (M&As) by financial institutions (FIs) that had the involvement of one or more private equity firms (PE) with (ii) acquisitions with no private equity involvement. We find that the M&A announcement abnormal stock returns are higher for acquisitions with- than without private equity involvement. Likewise, the post-announcement long-term annual stock returns are higher for deals with PE involvement. These deals also produce higher operating performance, and their stocks exhibit less volatility in the months following the announcement after controlling for a host of confounding variables. Our results are robust to year fixed effects, industry (i.e. business line) effects, and self-selection bias.
Journal: Applied Economics
Pages: 5898-5916
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1931657
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931657
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5898-5916




Template-Type: ReDIF-Article 1.0
Author-Name: Babatunde Buraimo
Author-X-Name-First: Babatunde
Author-X-Name-Last: Buraimo
Author-Name: Neil Coster
Author-X-Name-First: Neil
Author-X-Name-Last: Coster
Author-Name: David Forrest
Author-X-Name-First: David
Author-X-Name-Last: Forrest
Title: Spectator demand for the sport of kings
Abstract: 
 We estimate a model capturing influences on attendance in British horseracing. A fixed effects regression is employed in analysing data containing information on attendances at 23,999 race-days (2001–2018). The patterns of demand are similar to those found for other sports, for example, attendance is higher at weekends and in warmer months and is sensitive to the quality of the racing. Further, attendance falls when races have to compete with some televised sport of national significance. Controlling for a large number of characteristics, the pattern of results on year dummies implies considerable decline in public interest in attending race-days over the period. The pronounced negative trend in attendance suggests a need for modernizing the sport including attention to animal welfare issues, which might partly account for apparently growing public disillusion.
Journal: Applied Economics
Pages: 5883-5897
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1931010
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931010
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5883-5897




Template-Type: ReDIF-Article 1.0
Author-Name: Shiyu Jiang
Author-X-Name-First: Shiyu
Author-X-Name-Last: Jiang
Title: A study on the discrepancies between immigrants working in the regular and the ethnic enclave sectors in the Canadian Labor market
Abstract: 
 This paper studies performance differences between immigrants working in the regular Canadian labour market and those in the ethnic enclave sector of the economy. First, by studying the effects of education and race on the weekly wage earnings, I find that the returns to education are greater and being a visible minority carries less of a wage penalty for immigrants working in the regular sector compared with those in the enclave sector. Moreover, taking the AMEs (Average Marginal Effects) studies, I document different effects of education and race on both earnings and job segment for these two types of immigrants and propose an explanation. After this, I compute task supply and wage gaps between different types of immigrants in three census years to show differences in assimilation by immigration cohort. Finally, I use regression models to study immigrants’ task supply and weekly wages so that we can have a fuller view of the differences in performance between immigrants working in the regular and enclave sectors. I also use these models to analyse differences between immigrants and natives in Canada.
Journal: Applied Economics
Pages: 5964-5987
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934390
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934390
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5964-5987




Template-Type: ReDIF-Article 1.0
Author-Name: Sawssen Araichi
Author-X-Name-First: Sawssen
Author-X-Name-Last: Araichi
Author-Name: Tarifa Almulhim
Author-X-Name-First: Tarifa
Author-X-Name-Last: Almulhim
Title: Vine copulas and fuzzy inference to evaluate the solvency capital requirement of multivariate dependent risks
Abstract: 
 A capital requirement should be established for insurance companies at a level that allows them to fulfil their engagements towards policyholders. As such, evaluating an accurate amount of reserve and capital within different lines of business is a fundamental procedure for any company. However, studying the dependence between lines of business and the uncertainty regarding this dependence has been neglected in prior actuarial research. In practice, the evaluation of a Solvency Capital Requirement may be inaccurate when the risks of different business lines are independent. Thus, the present article aims to provide an appropriate modelling approach for claim amounts by taking into account the multivariate dependence between risks. To alleviate this issue, it uses vine copula functions to capture dependence between multivariate distributions of risks for five lines of business. Moreover, the dependence structure may be uncertain which leads to determining different levels of capital. Therefore, we propose a fuzzy inference system to handle the uncertainty of dependence structure. The obtained results reveal that considering the multivariate dependence structure produces a higher amount of Solvency Capital Requirement than the independence case. Moreover, the Solvency Capital Requirement level is decided according to the degree of dependence between risks.
Journal: Applied Economics
Pages: 6058-6074
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1935696
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1935696
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6058-6074




Template-Type: ReDIF-Article 1.0
Author-Name: Ranjeet Singh
Author-X-Name-First: Ranjeet
Author-X-Name-Last: Singh
Author-Name: Nemiraja Jadiyappa
Author-X-Name-First: Nemiraja
Author-X-Name-Last: Jadiyappa
Author-Name: Garima Sisodia
Author-X-Name-First: Garima
Author-X-Name-Last: Sisodia
Title: Bankruptcy law, creditors’ rights and financing choices: Evidence from a quasi-natural experiment in India
Abstract: 
 In this study, we examined the impact of changes in creditors’ rights on the financial policy of Indian firms in a quasi-natural experimental set up. Using the implementation of Insolvency and Bankruptcy Code (IBC) in 2016 as an exogenous policy shock, we investigated the changes in quantitative (leverage) and qualitative (debt maturity and debt heterogeneity) aspects of the financial policy. Overall, our findings indicated that the strengthening of creditors’ rights had a negative impact on debt ratio and debt heterogeneity and a positive impact on long-term debt maturity structure. These results were observed mainly in those firms that had a high probability of bankruptcy in the pre-implementation period.
Journal: Applied Economics
Pages: 6036-6042
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934395
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934395
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6036-6042




Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: Is it really hard to motivate those who are not highly educated? Empirical evidence from a semi-parametric analysis
Abstract: 
 In this study, we estimate the principal-agent model of moral hazard using a semi-parametric estimation method. We estimate the principal-agent model of moral hazard using longitudinal data on firms and managerial compensation collected from the database of Beijing Juyuan Ruisi Data Technology Corporation Limited, called RESSET. The estimated primitives in the contracting model show that most managers with high school and master educations have significantly higher costs of moral hazard than managers with university and doctor educations. Managers with high school and master educations are harder to motivate because they lack the knowledge to fulfill the delegated tasks.
Journal: Applied Economics
Pages: 6002-6035
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934394
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934394
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6002-6035




Template-Type: ReDIF-Article 1.0
Author-Name: Belton M. Fleisher
Author-X-Name-First: Belton M.
Author-X-Name-Last: Fleisher
Author-Name: William H. McGuire
Author-X-Name-First: William H.
Author-X-Name-Last: McGuire
Author-Name: Xiaojun Wang
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Wang
Author-Name: Min Qiang Zhao
Author-X-Name-First: Min Qiang
Author-X-Name-Last: Zhao
Title: Induced innovation: evidence from China’s secondary industry
Abstract: 
 We investigate the effect of rising labour costs on induced technological change in China’s secondary industry. Building on insights developed in a rich literature, we propose a model linking changes in labour productivity to changes in labour costs and the predetermined availability of physical capital. Importantly, we derive testable hypotheses to distinguish induced innovation from standard substitution of capital for labour under fixed technology. Our empirical results support the hypothesis that rising wages have induced labour-saving innovation in China, at least in the decade of the 1990s, but less so or not at all after the middle of the next decade.
Journal: Applied Economics
Pages: 6075-6093
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937037
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937037
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6075-6093




Template-Type: ReDIF-Article 1.0
Author-Name: Hyejin Lee
Author-X-Name-First: Hyejin
Author-X-Name-Last: Lee
Author-Name: Mansik Hur
Author-X-Name-First: Mansik
Author-X-Name-Last: Hur
Title: Non-normal errors or nonlinearity? performance of unit root tests
Abstract: 
 This paper investigates how unit root tests that are designed for non-normal errors perform in the presence of unknown forms of nonlinearity. This allows us to examine whether any neglected nonlinearity in an estimation procedure could be reflected, at least partly, in the form of non-normality. Our simulation study shows that in general, univariate tests that exploit the information in non-normal errors remain relatively powerful compared to well-known nonlinear unit root tests under various forms of nonlinear alternatives. We also investigate the unit root properties of the real effective exchange rates and real interest rates for 60 countries. The results support the findings in the simulation that the neglected non-normality or nonlinearity in the existing tests is captured and used in the linearized testing procedures as a source of power improvement.
Journal: Applied Economics
Pages: 6094-6103
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937038
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937038
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6094-6103




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyuan Zou
Author-X-Name-First: Xiaoyuan
Author-X-Name-Last: Zou
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: Qundi Feng
Author-X-Name-First: Qundi
Author-X-Name-Last: Feng
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Title: Does family involvement increase the subjective well-being of the self-employed? Evidence from China
Abstract: 
 Using data from the China Household Finance Survey, we investigate the relationship between family involvement and the subjective well-being (SWB) of the self-employed. Instrumental variables are used to address the potential endogeneity of family involvement. We show that family involvement has a significant effect on SWB and that the effect varies depending on whether the self-employed hire employees. When there are no employees, the effect is significantly positive; when employees are present, the effect is significantly negative. Specifically, self-employed individuals who have family involvement but no employees significantly have the higher levels of SWB than all the other self-employed individuals. Mechanism analysis shows that family involvement affects the SWB of the self-employed through an increase in business income. Robustness checks, including an extended ordered probit regression model and an estimation using an alternative measure of family involvement, validate our findings. Our analysis implies that family labour is an effective source of human resources for self-employed individuals in China, especially those without employees.
Journal: Applied Economics
Pages: 6043-6057
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934396
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934396
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6043-6057




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Rodríguez Andrés
Author-X-Name-First: Antonio
Author-X-Name-Last: Rodríguez Andrés
Author-Name: Voxi Heinrich S. Amavilah
Author-X-Name-First: Voxi Heinrich S.
Author-X-Name-Last: Amavilah
Author-Name: Abraham Otero
Author-X-Name-First: Abraham
Author-X-Name-Last: Otero
Title: Evaluation of technology clubs by clustering: a cautionary note
Abstract: 
 Applications of machine learning techniques to economic problems are increasing. These are powerful techniques with great potential to extract insights from economic data. However, care must be taken to apply them correctly, or the wrong conclusions may be drawn. In the technology clubs literature, after applying a clustering algorithm, some authors train a supervised machine learning technique, such as a decision tree or a neural network, to predict the label of the clusters. Then, they use some performance metric (typically, accuracy) of that prediction as a measure of the quality of the clustering configuration they have found. This is an error with potential negative implications for policy, because obtaining a high accuracy in such a prediction does not mean that the clustering configuration found is correct. This paper explains in detail why this modus operandi is not sound from theoretical point of view and uses computer simulations to demonstrate it. We caution policy and indicate the direction for future investigations.
Journal: Applied Economics
Pages: 5989-6001
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934393
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934393
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:5989-6001




Template-Type: ReDIF-Article 1.0
Author-Name: Yanchun Yi
Author-X-Name-First: Yanchun
Author-X-Name-Last: Yi
Author-Name: Yajun Wang
Author-X-Name-First: Yajun
Author-X-Name-Last: Wang
Author-Name: Yaqin Li
Author-X-Name-First: Yaqin
Author-X-Name-Last: Li
Author-Name: Ji Qi
Author-X-Name-First: Ji
Author-X-Name-Last: Qi
Title: Impact of urban density on carbon emissions in China
Abstract: 
 Based on the panel data of 108 prefecture-level cities in China from 2003 to 2018, the carbon emission effect of urban density was studied by establishing a dynamic panel model. We found that there was a significant negative correlation between urban density and carbon emissions, and the increase in urban density reduced carbon dioxide emissions. The nonlinear estimation results of urban density and carbon emission show that urban density has different impacts on carbon emission at different urban population levels. With the increase in population size, the carbon emission reduction effect brought by urban density growth decreases. In medium-sized cities, increased urban density leads to the greatest reduction in carbon emissions, followed by large cities with populations of less than 5 million. In megacities with a population size of more than 5 million, the carbon emission reduction effect of urban density is not significant. Our conclusion supports the proposition of building compact cities and provides decision support for the ideal of ‘beautiful China’ in the process of urbanization in China.
Journal: Applied Economics
Pages: 6153-6165
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937491
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937491
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6153-6165




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Kofi Adom
Author-X-Name-First: Philip Kofi
Author-X-Name-Last: Adom
Author-Name: Joonho Yeo
Author-X-Name-First: Joonho
Author-X-Name-Last: Yeo
Author-Name: Lin Zhang
Author-X-Name-First: Lin
Author-X-Name-Last: Zhang
Title: Is water use sustainable and efficient in China? Evidence from a macro level analysis
Abstract: 
 This paper measures the performance and efficiency dynamics of provincial water use by differentiating the long-run persistent efficiency from the short-run transient efficiency. We combine the econometric frontier approach with panel Markov-switching and Tobit estimations to investigate the macro level data over the period 2002–2016. The results reveal evidence of significant provincial and regional disparities, with a mean efficiency of 0.42 in terms of water use. We find that a large share of inefficiency is attributed to the long-term structural component, with persistency inefficiency estimated as 55%. We also find that the probability of maintaining efficient is less sustainable (about 48.5% by the sixth year) compared with 54.3% for staying inefficient. Thus, it is relatively difficult to transition out of the less efficient state. We thus suggest policy directions for sustainable and efficient management of water resource use.
Journal: Applied Economics
Pages: 6166-6183
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937496
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937496
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6166-6183




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Aparicio
Author-X-Name-First: Juan
Author-X-Name-Last: Aparicio
Author-Name: Harold Fried
Author-X-Name-First: Harold
Author-X-Name-Last: Fried
Author-Name: Jesus Pastor
Author-X-Name-First: Jesus
Author-X-Name-Last: Pastor
Author-Name: Loren W. Tauer
Author-X-Name-First: Loren W.
Author-X-Name-Last: Tauer
Title: Learning to win on the PGA tour
Abstract: 
 There is variation in how long it takes a golfer to win for the first time on the PGA tour. There are also golfers who never win. We investigate the time to first win using a survival function methodology, including shots gained measures of golfing ability, number of events played, experience prior to joining the tour, the competition, as explanatory variables. We also construct and include a variable that measures the ability to perform under pressure. Our pressure construct is potentially applicable to empirical studies of performance under pressure in other sports and the workplace. The data are all golfers whose rookie year was between 2004 and 2015. We find that performance under pressure, prior experience, events played, off the tee (distance and accuracy), and putting are the top five explanations of time to first win.
Journal: Applied Economics
Pages: 6104-6119
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2020.1784391
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784391
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6104-6119




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Bitar
Author-X-Name-First: Mohammad
Author-X-Name-Last: Bitar
Author-Name: Mohammed Benlemlih
Author-X-Name-First: Mohammed
Author-X-Name-Last: Benlemlih
Author-Name: Elias Erragragui
Author-X-Name-First: Elias
Author-X-Name-Last: Erragragui
Author-Name: Jonathan Peillex
Author-X-Name-First: Jonathan
Author-X-Name-Last: Peillex
Title: Legal rules, information transparency and Islamic bank capital decisions
Abstract: 
 To what extent does the formal institutional environment influence Islamic bank capital decisions? We answer this question by assessing the effect of the legal rule index on a sample of 100 Islamic banks in 28 countries from 1999 to 2013. Our econometric analyses show that legal rule index positively and significantly influences capital ratios. The results can be explained by the idea that effective legal rules incentivize Islamic banks to hold higher capital ratios to signal better monitoring to depositors and regulators. In addition, we find that this positive association can be enhanced through strong information transparency channels, democratic and stable political institutions. These results provide insight into how a formal institutional environment can shape Islamic bank capital ratios. It further suggests that the formal institutional environment serves as a constraint on policymakers, as any given capital guideline may function very differently depending on the complexity of the formal institutional environment.
Journal: Applied Economics
Pages: 6184-6203
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937497
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937497
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6184-6203




Template-Type: ReDIF-Article 1.0
Author-Name: Christos Agiakloglou
Author-X-Name-First: Christos
Author-X-Name-Last: Agiakloglou
Author-Name: Emmanouil Deligiannakis
Author-X-Name-First: Emmanouil
Author-X-Name-Last: Deligiannakis
Author-Name: Maria Psillaki
Author-X-Name-First: Maria
Author-X-Name-Last: Psillaki
Title: Investigating the behaviour of sovereign risk for Eurozone countries
Abstract: 
 The article examines the determinants of sovereign risk for European Monetary Union countries taking into consideration the global financial crisis, which emerged as a sovereign debt crisis in Europe. Using CDS prices, as a proxy of sovereign risk, this study finds that bond yields, equity prices and exchange rate are the key drivers of CDS prices. Moreover, our findings support models with dynamic components and regional effects between core and peripheral Eurozone countries, providing evidence of major differences in risk evaluation.
Journal: Applied Economics
Pages: 6204-6212
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937498
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937498
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6204-6212




Template-Type: ReDIF-Article 1.0
Author-Name: Minghua Dong
Author-X-Name-First: Minghua
Author-X-Name-Last: Dong
Author-Name: Xiong Xiong
Author-X-Name-First: Xiong
Author-X-Name-Last: Xiong
Author-Name: Xiao Li
Author-X-Name-First: Xiao
Author-X-Name-Last: Li
Title: The role of media coverage in measuring the systemic risk of Chinese financial institutions
Abstract: 
 This paper examines the impact of media coverage on systemic risk spillover in the Chinese market based on a tail event-driven network. By calculating the nonlinear conditional value at risk (CoVaR) through a tail-event driven network of Chinese financial institutions, we find that the CoVaR that considers media coverage has more accurate validity. When media coverage is high, the overall risk of the financial sector shifts. Compared with four different sectors, other financial institutions have the highest average risk inputs and outputs while the banking sector is the most robust. To provide further evidence, we analyse the spillover channels in times of crisis. We find that increased coverage can reduce the risk exposure within the system. We also find positive media have a lower level of systemic risk than negative media coverage in the sample period. We calculated the systemic risk exposure to illustrate the Systemically Important Financial Institutions (SIFIs) based on systemic risk emitters and receivers. The results are consistent with the Global Systemically Important Financial Institutions (G-SIFIs) and are broadly consistent with the media coverage results.
Journal: Applied Economics
Pages: 6138-6152
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934391
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934391
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6138-6152




Template-Type: ReDIF-Article 1.0
Author-Name: Xu Xin
Author-X-Name-First: Xu
Author-X-Name-Last: Xin
Author-Name: Xiaoli Wang
Author-X-Name-First: Xiaoli
Author-X-Name-Last: Wang
Author-Name: Zigen Chen
Author-X-Name-First: Zigen
Author-X-Name-Last: Chen
Author-Name: Kang Chen
Author-X-Name-First: Kang
Author-X-Name-Last: Chen
Title: Coastal shuttle tanker inventory routing model with a discrete loaded quantity
Abstract: 
 This paper investigates a coastal shuttle tanker inventory routing problem. We convert the problem into a vehicle routing problem with time windows by using the discrete tanker loaded quantity and formulate this problem as an integer programming model. The model aims to minimize the total operating costs of the tanker fleet during the observation period. The composition and scheduling scheme of the fleet and loaded quantity of each tanker are collaboratively optimized. Based on the branch-and-price algorithm framework, an exact algorithm that can solve the actual-scale problem is designed. The efficiency and effectiveness of the algorithm are tested, and a sensitivity analysis is conducted for the fuel cost of the tankers. The results provide managerial insights that are expected to be beneficial for oil companies.
Journal: Applied Economics
Pages: 6120-6137
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1918625
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1918625
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6120-6137




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Umutlu
Author-X-Name-First: Mehmet
Author-X-Name-Last: Umutlu
Author-Name: Pelin Bengitöz
Author-X-Name-First: Pelin
Author-X-Name-Last: Bengitöz
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Title: Decomposing the earnings-to-price ratio and the cross-section of international equity-index returns
Abstract: 
 We examine whether components of the earnings-to-price (EP) ratio can be used to extract incremental information to better estimate future returns in the cross-section of country-industry indexes. We demonstrate that the EP components, such as lagged EP, changes in earnings, short-term momentum and long-term reversal in prices increase the accuracy of return forecasts. The EP decomposition matters in developed markets but is pointless in emerging countries. The results are robust to modifications in the methodology, sub-period analyses, the use of an alternative sample and remain unchanged after controlling for net share issuance, size, and fixed country and time effects.
Journal: Applied Economics
Pages: 6213-6230
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937499
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937499
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6213-6230




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Khan
Author-X-Name-First: Muhammad
Author-X-Name-Last: Khan
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Financial instability and environmental degradation: a panel data investigation
Abstract: 
 Economic theory suggests several channels through which financial instability might influence environmental quality. However, the empirical testing of this nexus comprises only few studies with conflicting outcomes on both the presence as well as the direction of this relationship. This study aims to fill this gap by analysing the relationship between pollution emissions, financial instability, output growth, trade openness, gross fixed capital formation and foreign direct investment (FDI) using a large sample of 88 developing economies for the 1980–2014 period. For our short- and long-run estimates, we use the panel vector error correction model (P-VECM) and the panel cointegration method. Our outcomes support the presence of long-run relationships between the selected variables. Moreover, the income, trade openness, investment and financial instability variables augment carbon dioxide (CO2) emissions, whereas FDI reduces the latter. The vector error correction model (VECM) models show a bidirectional, short-run connection between income and environmental degradation. Our empirical findings have some important policy implications for developing countries.
Journal: Applied Economics
Pages: 6319-6331
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937508
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937508
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6319-6331




Template-Type: ReDIF-Article 1.0
Author-Name: Hyeongwoo Kim
Author-X-Name-First: Hyeongwoo
Author-X-Name-Last: Kim
Author-Name: Madeline H. Kim
Author-X-Name-First: Madeline H.
Author-X-Name-Last: Kim
Title: U.S. presidential election polls and the economic prospects of China and Mexico
Abstract: 
 Motivated by Mr. Trump’s agendas against China and Mexico, we investigate how a candidate’s probability of winning the U.S. presidential election affects the international financial markets that are related to these countries. Unexpected increases in Trump’s probability of winning the 2020 election generate significantly negative long-term effects on their home currency and the stock prices, while the default probability responds significantly positively in the long run. Similar responses, though in the short run, were observed when Mr. Biden’s probability of winning increases, which tends to dissipate quickly over time. The responses to the Biden shock resemble those to the Trump shock during the 2016 election, implying that the probability shock of the new entrant candidate creates short-run disturbances in the financial market, whereas the probability shock of the incumbent candidate such as Trump in 2020 or Clinton in 2016 helps stabilize financial markets in the short run.
Journal: Applied Economics
Pages: 6231-6248
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937501
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937501
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6231-6248




Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Biscione
Author-X-Name-First: Antonella
Author-X-Name-Last: Biscione
Author-Name: Dorothée Boccanfuso
Author-X-Name-First: Dorothée
Author-X-Name-Last: Boccanfuso
Author-Name: Annunziata De Felice
Author-X-Name-First: Annunziata
Author-X-Name-Last: De Felice
Title: Regulations and Corporate Environmental Responsibility: evidence from a panel of firms in Transition economies
Abstract: 
 This study investigates how a set of regulations influences the pro-environmental actions of firms in a panel of 25 Transition Countries. For this purpose, we use the enterprise survey data developed by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the World Bank Group (WBG). Based on a logit modelling and on the construction of different indicators characterizing the environmental actions of the firms, we find that regulation positively affects the decision of firms to implement an eco-action. Results are confirmed when we examine the different eco-action categories. Findings obtained from the interactions are also worthy of note. In particular, we find that board of directors are more prone to consider shareholder interests, and a strong network effect emerges between EU candidate countries and EU economies.
Journal: Applied Economics
Pages: 6286-6299
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937506
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937506
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6286-6299




Template-Type: ReDIF-Article 1.0
Author-Name: Fei Fan
Author-X-Name-First: Fei
Author-X-Name-Last: Fan
Author-Name: Shangze Dai
Author-X-Name-First: Shangze
Author-X-Name-Last: Dai
Author-Name: Keke Zhang
Author-X-Name-First: Keke
Author-X-Name-Last: Zhang
Author-Name: Haiqian Ke
Author-X-Name-First: Haiqian
Author-X-Name-Last: Ke
Title: Innovation agglomeration and urban hierarchy: evidence from Chinese cities
Abstract: 
 Innovation agglomeration leads to changes in the hierarchical structure of innovation, driving regional economic development. We establish a general equilibrium framework for urban innovation, that is to say, the process of production in a city can be divided into the knowledge production sector and final goods production sector. By this we explain the positive matching relationship between innovation agglomeration and a city’s position in the urban hierarchy (herein called urban tier). Then we empirically analyse 286 prefecture level Chinese cities to evaluate the impact of urban tier on innovation agglomeration using a two-way fixed effect model. To reveal the nonlinear relationship between urban hierarchy and innovation agglomeration, panel quantile and threshold regression models were also used. The main results show that: (1) The spatial structure of innovation in Chinese cities is consistent with the urban tier, and the urban tier plays a significant role in promoting innovation agglomeration. (2) Heterogeneous spatial structures of innovation among urban tiers are reflected in the higher agglomeration of innovation resources in high-tier cities, and the impact of city scale on innovation agglomeration is nonlinear. When the city scale reaches a certain threshold value, its impact on innovation agglomeration is significantly strengthened.
Journal: Applied Economics
Pages: 6300-6318
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937507
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937507
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6300-6318




Template-Type: ReDIF-Article 1.0
Author-Name: Kanix Bukkavesa
Author-X-Name-First: Kanix
Author-X-Name-Last: Bukkavesa
Author-Name: Dinorah Frutos-Bencze
Author-X-Name-First: Dinorah
Author-X-Name-Last: Frutos-Bencze
Author-Name: Nat Kulvanich
Author-X-Name-First: Nat
Author-X-Name-Last: Kulvanich
Title: Is growth in entrepreneurial activity truly beneficial for a prosperous and equitable economy?
Abstract: 
 This study attempts to refine and extend the understanding of how entrepreneurial activity in combination with various institutional and economic factors may increase or decrease the levels of economic inequality of a country. We use fuzzy-set qualitative comparative analysis (fsQCA) methodology to obtain various configurations that arise when dimensions based on the national business systems framework are combined with entrepreneurial activity measures. We analysed configurations for two years, 2010 and 2018. Our findings suggest that there are several configurations of different types of entrepreneurial activities and institutional factors that lead to income inequality. However, there are also several configurations that promote income equality.
Journal: Applied Economics
Pages: 6249-6265
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937502
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937502
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6249-6265




Template-Type: ReDIF-Article 1.0
Author-Name: Azzurra Annunziata
Author-X-Name-First: Azzurra
Author-X-Name-Last: Annunziata
Author-Name: Massimiliano Agovino
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Agovino
Author-Name: Aniello Ferraro
Author-X-Name-First: Aniello
Author-X-Name-Last: Ferraro
Author-Name: Angela Mariani
Author-X-Name-First: Angela
Author-X-Name-Last: Mariani
Title: Food waste as a consequence of an inefficient consumer’s choices: a microeconomic approach
Abstract: 
 This study frames the household food waste challenge in the microeconomic theory context by proposing a model that considers food waste a consequence of inefficient consumer choices. A data envelopment analysis (DEA) methodology was applied to factor consumer’s efficiency level dimension, starting from data collected through a web survey conducted in Italy with a sample of 530 individuals responsible for their households’ food-shopping. The findings confirm that food waste is a complex issue, affected by both behavioural and psychological factors, synthesized in three indices constructed with fuzzy analysis. The results show that the shopping behaviour index generates a higher average efficiency score for food waste minimization than the food waste concerns and moral attitudes indices. Furthermore, those drivers have different efficiency levels in reducing food waste with reference to gender, age, family composition, and educational level. The results have several implications for policymakers: they highlight the need to implement tailored educational and information campaigns that consider the most important targets identified, such as large families with children, young people, and men.
Journal: Applied Economics
Pages: 6266-6285
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937503
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937503
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6266-6285




Template-Type: ReDIF-Article 1.0
Author-Name: Dinesh Gajurel
Author-X-Name-First: Dinesh
Author-X-Name-Last: Gajurel
Author-Name: Biplob Chowdhury
Author-X-Name-First: Biplob
Author-X-Name-Last: Chowdhury
Title: Realized Volatility, Jump and Beta: evidence from Canadian Stock Market
Abstract: 
 Inclusion of jump component in the price process has been a long debate in finance literature. In this paper, we identify and characterize jump risks in the Canadian stock market using high-frequency data from the Toronto Stock Exchange. Our results provide a strong evidence of jump clustering – about 30% of jumps occur within first 30 minutes of trading hours, and about 25% of jumps are due to the overnight returns. While average intraday jump is negative, jumps induced by overnight returns bring a cancellation effect yielding average size of the jumps to zero. We show that the economic significance of jump component in volatility forecasting is significant but nominal. Our results further demonstrate that market jumps and overnight returns bring significant changes in systematic risk of stocks. From a cross-sectional perspective, while the average effect of market jumps on the beta is not significantly different from zero, the average effect of overnight returns is statistically significant. Overall, our results suggest that systematic risk induced by the market jumps could be hedged by combining value stocks and growth stocks in a portfolio whereas the systematic risk induced by overnight returns can not be hedged even with a well diversified portfolio.
Journal: Applied Economics
Pages: 6376-6397
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940082
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940082
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6376-6397




Template-Type: ReDIF-Article 1.0
Author-Name: Xianfang Su
Author-X-Name-First: Xianfang
Author-X-Name-Last: Su
Author-Name: Wenqiang Zhan
Author-X-Name-First: Wenqiang
Author-X-Name-Last: Zhan
Author-Name: Yong Li
Author-X-Name-First: Yong
Author-X-Name-Last: Li
Title: Quantile dependence between investor attention and cryptocurrency returns: evidence from time and frequency domain analyses
Abstract: 
 This paper examines, in the time and frequency domains, the quantile dependence and directional predictability of investor attention to cryptocurrency returns. We find that there is significant tail dependence between investor attention and cryptocurrency returns. When market pays very high or very low attention to cryptocurrencies, there is an increased likelihood to have very large positive gains and suffer from very large negative results. Our results indicate that the quantile dependence between investor attention and cryptocurrency returns has a higher statistical significance in the long-term than medium-term and short-term. This implies that quantile dependence between investor attention and cryptocurrency returns is mainly dominated by low-frequency components. These findings have important implications for cryptocurrency investors.
Journal: Applied Economics
Pages: 6439-6471
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940826
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940826
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6439-6471




Template-Type: ReDIF-Article 1.0
Author-Name: Rajiv Nathoo
Author-X-Name-First: Rajiv
Author-X-Name-Last: Nathoo
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Vinaye Ancharaz
Author-X-Name-First: Vinaye
Author-X-Name-Last: Ancharaz
Author-Name: Mahfuz Kabir
Author-X-Name-First: Mahfuz
Author-X-Name-Last: Kabir
Title: Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins?
Abstract: 
 This article applies the flexible estimation approach to estimate an augmented gravity trade model to investigate the link between aid for trade (AfT) and export diversification along the intensive and extensive margins in 42 sub-Saharan African (SSA) countries for the period 1995 to 2019. The findings suggest that total AfT is conducive to export diversification along both margins. When analysed by the AfT category, the results reveal that AfT for trade facilitation is more effective in the short run in boosting exports at the extensive margin while AfT for productive capacity building has a bigger impact along both export margins in the longer term. AfT for economic infrastructure seems to promote exports only at the intensive margin. A key policy implication for the donor community is that providing new and additional resources to trade facilitation in African countries could deliver the highest immediate returns in terms of aid effectiveness.
Journal: Applied Economics
Pages: 6412-6425
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940084
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940084
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6412-6425




Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Bucci
Author-X-Name-First: Alberto
Author-X-Name-Last: Bucci
Author-Name: Lorenzo Carbonari
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Carbonari
Author-Name: Monia Ranalli
Author-X-Name-First: Monia
Author-X-Name-Last: Ranalli
Author-Name: Giovanni Trovato
Author-X-Name-First: Giovanni
Author-X-Name-Last: Trovato
Title: Health and economic development: evidence from non-OECD countries
Abstract: 
 This paper studies the empirical relationship between population’s health and real GDP dynamics in low- and middle-income countries. We employ a semi-parametric technique, which combines mixed panel data models and cluster analysis to account for unobserved heterogeneity, an important source of estimation bias in growth regressions. We estimate a version of the Solow growth model augmented with human capital, in the form of both education and health. Our estimates show that population s health, here proxied by the life expectancy at birth, has a positive, sizable, and statistically significant effect on both the level and the growth rate of the real per capita GDP.
Journal: Applied Economics
Pages: 6348-6375
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1939856
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1939856
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6348-6375




Template-Type: ReDIF-Article 1.0
Author-Name: Huwei Wen
Author-X-Name-First: Huwei
Author-X-Name-Last: Wen
Author-Name: Zhao Zhao
Author-X-Name-First: Zhao
Author-X-Name-Last: Zhao
Title: How does China’s industrial policy affect firms’ R&D investment? Evidence from ‘Made in China 2025’
Abstract: 
 Aimed at improving innovation capacity and upgrading technology of manufacturing industry, ‘Made in China 2025’ (CM2025), which relies on selective industrial policies, has attracted great attention. This paper investigates the effects of CM2025 on firms’ R&D investment using CEM-DID, a combination method based on the coarsened exact matching and the difference-in-difference. The method can effectively identify causal relationships without suffering from selection bias. Employing a panel data of 1,440 Chinese A-share listed firms from 2012 to 2018, we find firms with core business covered by the areas of CM2025 increase their R&D investment significantly after the policy intervention. Moreover, CM2025 significantly increases government subsidies and financial loans for treated firms, and both effects are larger for SOEs. This finding supports the critique that CM2025 goes against the competitive neutrality principle. No increase in innovation output and total factor productivity is found in the short-term. Our findings are enlightening for enacting better industrial policies.
Journal: Applied Economics
Pages: 6333-6347
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2020.1717429
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1717429
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6333-6347




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Hu
Author-X-Name-First: Wei
Author-X-Name-Last: Hu
Author-Name: Zhenxing Xiong
Author-X-Name-First: Zhenxing
Author-X-Name-Last: Xiong
Title: Do stringent environmental regulations help improve the total factor carbon productivity? Empirical evidence from China’s industrial sectors
Abstract: 
 How can China fully use the limited carbon emission space to achieve the dual goal of stable economic growth and a gradual decline in carbon emissions under increasingly severe global climate change? To address this issue, this paper incorporates the carbon emission space as a production factor into the total factor analysis framework and discusses how environmental regulations affect the total factor carbon productivity. The conclusions reveal that the current environmental regulations have a direct effect on improvement in the total factor carbon productivity of industrial sectors. Environmental regulations also have an indirect effect on the total factor carbon productivity that is mainly achieved through the energy structure and technological advancement. The results of the additional analyses show that these direct and indirect effects have threshold characteristics. Increasing the total factor carbon productivity is beneficial only when the environmental regulation intensity, energy structure and technological level are within a reasonable threshold range. Therefore, the environmental regulation intensity, energy structure conditions and technological level need to be considered when environmental regulations are relied upon to improve the total factor carbon productivity.
Journal: Applied Economics
Pages: 6398-6411
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940083
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940083
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6398-6411




Template-Type: ReDIF-Article 1.0
Author-Name: Victoria Ateca-Amestoy
Author-X-Name-First: Victoria
Author-X-Name-Last: Ateca-Amestoy
Author-Name: Arantza Ugidos
Author-X-Name-First: Arantza
Author-X-Name-Last: Ugidos
Title: Gender differences in cultural and sports activities attendance: an intra-couple analysis
Abstract: 
 We study how education affects cultural and sports attendance of spouses using the Survey on Living Conditions 2015. With a sample of 7920 heterosexual couples, we estimate bivariate models for attendance to cinema, visits to monuments, life performances and sports events. We conduct research at the intra-household level and estimate the marginal effect of female and male characteristics over the probability of having a household where both members participate in the same type of social activity. Own and spouse’s education, income and having young children (0–3 years old) are the main drivers of both partners’ attending the same activities. Both male and female education have a positive, but not statistically different effect, on these probabilities. The probability of both spouses participating in culture and sports activities increases with income and decreases with the presence of young children.
Journal: Applied Economics
Pages: 6426-6438
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940085
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940085
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6426-6438




Template-Type: ReDIF-Article 1.0
Author-Name: In Kyung Kim
Author-X-Name-First: In Kyung
Author-X-Name-Last: Kim
Title: Organizational form and performance: The cinema chain case
Abstract: 
 In this article, we explore the relationship between the organizational form of a chain-affiliated establishment and its performance. Unlike previous studies focusing on retail or small service sectors, we consider an industry that requires large investments in equipment and facilities. Using cross-sectional data on Korean movie theatres, we find evidence that performance is higher in company-owned theatres than in franchised ones. We also find that company-owned theatres maintain higher-quality equipment compared to franchised theatres while setting prices higher. These findings and the observation that the share of franchised theatres falls over time in this industry are consistent with the implications of the capital-constraint argument for franchising rather than the agency-incentives argument.*
Journal: Applied Economics
Pages: 6472-6487
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946003
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946003
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6472-6487




Template-Type: ReDIF-Article 1.0
Author-Name: Wensheng Kang
Author-X-Name-First: Wensheng
Author-X-Name-Last: Kang
Author-Name: Fernando Perez de Gracia
Author-X-Name-First: Fernando
Author-X-Name-Last: Perez de Gracia
Author-Name: Ronald A. Ratti
Author-X-Name-First: Ronald A.
Author-X-Name-Last: Ratti
Title: Do gasoline prices respond to non-US and US oil supply shocks?
Abstract: 
 This paper extends previous literature that investigates the impact of crude oil prices on US gasoline prices using a structural vector autoregressive model of the global crude oil market. In particular, we disentangle the global oil production into non-US and US oil production and we examine whether real gasoline prices respond to non-US and US oil supply shocks using monthly data from October 1973 to February 2018. It shows that non-US (US) oil supply disruptions generate nonsignificant (significantly positive) effects on the real price of oil and real price of gasoline. The effect of non-US (US) oil supply shocks on the real price of gasoline has been declining (rising) over time.
Journal: Applied Economics
Pages: 6488-6496
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946473
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946473
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6488-6496




Template-Type: ReDIF-Article 1.0
Author-Name: Sunil Sangwan
Author-X-Name-First: Sunil
Author-X-Name-Last: Sangwan
Author-Name: Narayan Chandra Nayak
Author-X-Name-First: Narayan Chandra
Author-X-Name-Last: Nayak
Author-Name:  Harshita
Author-X-Name-First: 
Author-X-Name-Last: Harshita
Author-Name: Vikas Sangwan
Author-X-Name-First: Vikas
Author-X-Name-Last: Sangwan
Title: Borrowers’ credit risk factors, perception towards repayment interventions and moral hazard in loan delinquency: an investigation of Indian microfinance institutions
Abstract: 
 The study explores the borrowers’ credit risk factors, perception towards repayment interventions, and the problems of moral hazard affecting delinquency in uncollateralized loans issued by the Microfinance Institutions (MFI). It employs the partial least square structural equation modelling to develop a buyer-side perception-behavioural model for borrowers’ loan delinquency behaviour. The findings indicate that the borrowers’ perception towards MFI loan repayment interventions and group homogeneity significantly reduces the moral hazard problem leading to a lower delinquency rate. The household socio-economics characteristics also seem to have a significant association with the borrowers’ loan delinquency. Identification of borrowers’ credit risk factors and the interlinkage between borrower’s perception towards repayment interventions, group homogeneity, and moral hazard in loan delinquency can provide critical insights that MFIs can consider while disbursing uncollateralized loans to control the default risk.
Journal: Applied Economics
Pages: 6554-6569
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946478
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946478
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6554-6569




Template-Type: ReDIF-Article 1.0
Author-Name: Munawar Ismail
Author-X-Name-First: Munawar
Author-X-Name-Last: Ismail
Title: The direct effect of commercial banks on poverty reduction: evidence from provinces in Indonesia
Abstract: 
 Many studies at the macro-level have proved the direct influence of savings and credit on poverty reduction. This study aimed to correct this finding and employed commercial banks as the research case because most poor people had major barriers to directly access services provided by commercial banks. This study revealed that savings did not affect poverty reduction by employing panel data composed from provinces in Indonesia from 2004 to 2018. This finding indicated that the poor people did not prefer commercial banks for saving their money which functions as an instrument for their fund accumulation or emergency savings. On the contrary, this study proved that the credit of commercial banks affected regional poverty. Besides, this study revealed that poverty among regions in Indonesia was heterogeneous. The regions with more developed banking infrastructures do not automatically have a low poverty rate. Therefore, anti-regional poverty policy should focus on commercial bank reinforcement as intermediary institutions and regional aspects.
Journal: Applied Economics
Pages: 6497-6509
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946474
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946474
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6497-6509




Template-Type: ReDIF-Article 1.0
Author-Name: Zhengrong Yi
Author-X-Name-First: Zhengrong
Author-X-Name-Last: Yi
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Title: Import trade liberalization and individual happiness: evidence from chinese general social survey 2010-2015
Abstract: 
 The happiness of citizens has long been the focus of all national governments. From a perspective of import trade liberalization, this paper uses 2010–2015 Chinese General Social Survey (CGSS) data to analyse whether import trade liberalization can improve national happiness and through which channels. The results show that import trade liberalization can significantly improve individual happiness and promote the happiness of citizens in the central region. When individuals are high-educated or high-income ones, trade liberalization can make them come out of the feelings of unhappiness more quickly. The trade liberalization can consolidate the happiness foundation of rural residents and improve the feelings of very happy of the urban ones. Further mechanism analysis demonstrates that import trade liberalization can improve individual happiness by enhancing individual fitness and marketization of the provinces where the individual is settled.
Journal: Applied Economics
Pages: 6535-6553
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946477
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946477
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6535-6553




Template-Type: ReDIF-Article 1.0
Author-Name: He Xiao
Author-X-Name-First: He
Author-X-Name-Last: Xiao
Author-Name: Xin Chen
Author-X-Name-First: Xin
Author-X-Name-Last: Chen
Author-Name: Heyang Fang
Author-X-Name-First: Heyang
Author-X-Name-Last: Fang
Author-Name: Yifei Zhang
Author-X-Name-First: Yifei
Author-X-Name-Last: Zhang
Title: Insider share pledging and firm value consequences under the COVID-19: evidence from China
Abstract: 
 Share pledging, the practice in which shareholders secure a loan using their shares, has become a global phenomenon in recent years. In this paper, we investigate the effect of such corporate insider actions on outsider wealth during the pandemic. Concretely, we examine how firms’ market value change when corporate insiders pledge their shareholdings during China’s COVID-19 outbreak. It is found that market investors responded adversely to share pledging announcements by firms in the high pandemic-affected regions. Besides, the state ownership and better corporate governance structures of the pledged firms could mitigate such adverse impacts. Our study highlights a specific externality generated by corporate insiders to outside shareholders during a crisis period.
Journal: Applied Economics
Pages: 6522-6534
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946476
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946476
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6522-6534




Template-Type: ReDIF-Article 1.0
Author-Name: Jungho Baek
Author-X-Name-First: Jungho
Author-X-Name-Last: Baek
Title: A new look at the oil prices and exchange rates nexus: a quantile cointegrating regression approach to south korea
Abstract: 
 The present article contributes to the existing research by applying a quantile autoregressive distributed lag (QARLD) method to investigate whether the locational asymmetries across quantiles exist between oil prices and the real exchange rate for an oil-importer, specifically South Korea (KRW). We discover that the oil price impacts are heterogeneous across quantiles and evidence of locational asymmetry in the short run. In the long run, however, there is little evidence of significant oil price impacts across quantiles and of locational asymmetry.
Journal: Applied Economics
Pages: 6510-6521
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946475
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946475
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6510-6521




Template-Type: ReDIF-Article 1.0
Author-Name: Seongkyu Gilbert Park
Author-X-Name-First: Seongkyu Gilbert
Author-X-Name-Last: Park
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: Contract size changes in the options market: effects on market efficiency and investor behaviour
Abstract: 
 We study options market participants’ trading behaviour before and after the options multiplier increases. After the options multiplier increases, the options market becomes more efficient. By analysing the high-frequency microstructure dataset, we show that local retail and local institutional investors who trade in both options and futures markets trade more after the change in the multiplier. Our results imply that the increase in the market efficiency may be caused by fewer speculators. In addition, lottery stocks are traded more actively after the options multiplier increase.
Journal: Applied Economics
Pages: 6670-6682
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1948962
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1948962
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6670-6682




Template-Type: ReDIF-Article 1.0
Author-Name: Hebatalla Atef Emam
Author-X-Name-First: Hebatalla Atef
Author-X-Name-Last: Emam
Title: Interest rate setting in Egypt: a NARDL approach for estimating backward-looking monetary policy reaction function
Abstract: 
 The role of inflation versus output and exchange rate in designing monetary policy in Egypt has been subject to considerable debate in literature, even after the proclamation of price stability as the monetary policy objective in 2004 and the adoption of flexible exchange rate system in 2016. This study aims to investigate the main drivers of interest rate setting in Egypt throughout the period from 2005 to 2019. In this context, both an ARDL and NARDL econometric techniques are employed to estimate the backward-looking augmented Taylor monetary policy reaction function. The estimated equation estimates policy rate as a function in lagged inflation, lagged output gap, lagged policy rate, change in real effective exchange rate, in addition to other variables. The importance of this study arises from the lack of recent studies assessing interest rate setting in Egypt. The study concludes that monetary policy in Egypt has been accommodative to inflation and that Central Bank of Egypt responds asymmetrically to shocks in inflation, output and exchange rate.
Journal: Applied Economics
Pages: 6655-6669
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1948961
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1948961
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6655-6669




Template-Type: ReDIF-Article 1.0
Author-Name: Nighat Seema
Author-X-Name-First: Nighat
Author-X-Name-Last: Seema
Author-Name: Fazal Jawad Seyyed
Author-X-Name-First: Fazal Jawad
Author-X-Name-Last: Seyyed
Author-Name: Choudhry Tanveer Shehzad
Author-X-Name-First: Choudhry Tanveer
Author-X-Name-Last: Shehzad
Title: Impact of gender on access to finance in developing countries
Abstract: 
 This paper studies the effect of female ownership on access to finance on a broad panel of developing countries. We find that female owners generally face more credit constraints compared to their male counterparts, however, such constraints are lower for women-owned firms that have an experienced senior management. We further show that with better institutional and policy environment in a country, women-owned firms face fewer credit constraints. Our findings remain robust when tested across a sample of small and medium enterprises (hereinafter SMEs) and other sensitivity tests.
Journal: Applied Economics
Pages: 6582-6610
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1947958
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1947958
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6582-6610




Template-Type: ReDIF-Article 1.0
Author-Name: Mariarosaria Comunale
Author-X-Name-First: Mariarosaria
Author-X-Name-Last: Comunale
Author-Name: Francesco Paolo Mongelli
Author-X-Name-First: Francesco Paolo
Author-X-Name-Last: Mongelli
Title: Tracking growth in the euro area subject to a dimensionality problem
Abstract: 
 Which variables have supported growth in the euro area over the last 30 years? Answering is challenging due to dimensionality problems caused by a large set of potential determinants, limited data availability, and the prospect of non-stationarity of some variables. We propose an atheoretical framework starting with a set of 35 real, financial, monetary, and institutional variables for nine of the initial euro area countries covering the period between 1990Q1 and 2019Q4. Using the Weighted-Average Least Squares method, we gather clues about which variables to select. We quantify the impact of various determinants of growth in the short and long runs. Our main findings are that institutional reforms, competitiveness, monetary policy and a decrease in systemic risk play a relevant role for long-run growth in the euro area. Surprisingly, the fiscal deficit is not an important factor, and neither is credit to households. Lower debt to GDP ratios are beneficial in the short run. Credit to firms has been an important factor for growth in core countries and an increase in global GDP spillovers positively to the euro area growth in a longer horizon.
Journal: Applied Economics
Pages: 6611-6625
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1947959
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1947959
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6611-6625




Template-Type: ReDIF-Article 1.0
Author-Name: Yan Li
Author-X-Name-First: Yan
Author-X-Name-Last: Li
Author-Name: Yanjiang Wu
Author-X-Name-First: Yanjiang
Author-X-Name-Last: Wu
Author-Name: Yaqing Chen
Author-X-Name-First: Yaqing
Author-X-Name-Last: Chen
Author-Name: Qingbo Huang
Author-X-Name-First: Qingbo
Author-X-Name-Last: Huang
Title: The influence of foreign direct investment and trade opening on green total factor productivity in the equipment manufacturing industry
Abstract: 
 Foreign direct investment (FDI) and import and export trade helped strengthen China’s equipment manufacturing industry, which is among the world’s top high performing industries. However, extensive economic growth in the manufacturing sector has caused massive resource consumption and serious environmental pollution. Therefore, this paper analyzes the impact of FDI and trade openness on the green total factor productivity (GTFP) of China’s equipment manufacturing industry by using panel data of the equipment manufacturing industry and 7 sub-industries in China operating from 2003 to 2015. The results indicate that FDI, export trade, human capital, and environmental regulation have asignificant positive impact on the GTFP of China’s equipment manufacturing industry, while import trade and technological innovation have asignificant negative impact. And the levels of human capital, technological innovation and environmental regulation restrict the impact of FDI and export trade on the GTFP of the equipment manufacturing industry through threshold effects.
Journal: Applied Economics
Pages: 6641-6654
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1947961
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1947961
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6641-6654




Template-Type: ReDIF-Article 1.0
Author-Name: Minjung Kim
Author-X-Name-First: Minjung
Author-X-Name-Last: Kim
Title: Financial constraints, productivity, and the global financial crisis
Abstract: 
 This study investigates the effects of firms’ financial constraints on their productivity by considering firms’ ownership structure and characteristics using a manufacturing firm-level dataset from South Korea for the period 2006–2017. The System Generalized Method of Moments results indicate that foreign multinational corporations rarely experienced financial constraints on their productivity, whereas the effects of financial constraints on productivity were aggravated for domestic firms during the global financial crisis. Particularly, small, young, and unaffiliated domestic firms experienced more severe financial constraints, especially during the global financial crisis, than did large, old, and affiliated domestic firms. The results show that small, young, and unaffiliated domestic firms which invested in R&D activity were less financially constrained than those without R&D activity. Based on the Heckman two-step estimation results, financial factors significantly affected R&D investment; thus, severe financial constraints hindered optimal R&D investment, which is necessary for productivity enhancement. Therefore, financial market failure during the global financial crisis resulted in productivity polarization. Hence, policies that relax financial constraints for innovation activity, such as R&D subsidies and tax exemption incentives should be targeted to financially vulnerable firms, such as small, young, and unaffiliated domestic firms. These policies should be strengthened during a financial crisis.
Journal: Applied Economics
Pages: 6570-6581
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1922596
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922596
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6570-6581




Template-Type: ReDIF-Article 1.0
Author-Name: Monoj Kumar Majumder
Author-X-Name-First: Monoj Kumar
Author-X-Name-Last: Majumder
Author-Name: Mala Valliammai Raghavan
Author-X-Name-First: Mala Valliammai
Author-X-Name-Last: Raghavan
Author-Name: Joaquin L. Vespignani
Author-X-Name-First: Joaquin L.
Author-X-Name-Last: Vespignani
Title: Impact of commodity price volatility on external debt: the role of exchange rate regimes
Abstract: 
 This study explores the impact of commodity price volatility on external debt accumulation under fixed, managed, and floating exchange rate regimes. We estimate dynamic panel data models for 97 countries from 1993 to 2016. Our empirical findings show that commodity price volatility increases external debt accumulation for commodity-exporting countries. This impact is three-times higher for countries with fixed exchange rate regimes compared to managed floating exchange rate regimes. Under floating exchange regimes, the effect of commodity price volatility on external debt is statistically insignificant. Our results suggest that the adoption of a floating exchange rate regime by commodity-exporting countries is critical to mitigate the effects of commodity price volatility on external debt accumulation.
Journal: Applied Economics
Pages: 6626-6640
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1947960
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1947960
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6626-6640




Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Apergis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Apergis
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: The impact of COVID-19 on economic growth: evidence from a Bayesian Panel Vector Autoregressive (BPVAR) model
Abstract: 
 This paper explores the impact on the macroeconomy for certain OECD economies exposed to the COVID-19 pandemic shock. The analysis employs a panel of OECD countries, spanning the period March 2020 to January 2021. It also uses two proxies for the COVID-19 shocks: i) total confirmed incidences/cases and ii) total deaths while using the Bayesian Panel Vector Autoregressive (BPVAR) method. The findings document that the COVID-19 shock exerts a strong negative effect on industrial production. Considering how such epidemic shocks affect the expectations of economic participants, the paper questions their absence in accounting for forthcoming growth-related incidences.
Journal: Applied Economics
Pages: 6739-6751
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946479
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946479
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6739-6751




Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Rajesh Pathak
Author-X-Name-First: Rajesh
Author-X-Name-Last: Pathak
Author-Name: Ranjan DasGupta
Author-X-Name-First: Ranjan
Author-X-Name-Last: DasGupta
Author-Name: Perry Sadorsky
Author-X-Name-First: Perry
Author-X-Name-Last: Sadorsky
Title: Modelling dependence and systemic risk between oil prices and BSE sectoral indices using stochastic copula and CoVar, ΔCoVar and MES approaches
Abstract: 
 We investigate the dependency, risk spillovers, and systemic risk between the sectoral indices returns of the Bombay stock exchange (BSE) and oil prices using recently developed empirical techniques. The dependence is modelled using the time varying Stochastic Autoregressive Copulas (SCAR). Conditional value-at-risk (CoVaR), ΔCoVaR and marginal expected shortfall (MES) measures are used to examine the systemic risk. We find rotated Gumbel and normal copulas to be the best fitting in our analysis. Sectors such as energy, power, and industrial exhibit higher persistence in dependence structure compared to other sectors. Our results reveal that the underlying forces of the dependence between oil prices with other industries vary across time, albeit not so much during stable periods, but increase remarkably during turbulent times. All sectors are affected significantly by extreme oil price movements. The average short-run MES is highest for the metals, materials, and industrials sectors. The lowest average short-run MES values are observed for the fast-moving consumer goods, auto, and carbon sectors. Our risk analysis results reveal that Indian stock sectors are not resistant to oil shocks and there exists significant systemic risk between these markets and the crude oil market.
Journal: Applied Economics
Pages: 6770-6788
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949430
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949430
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6770-6788




Template-Type: ReDIF-Article 1.0
Author-Name: Dong Zhou
Author-X-Name-First: Dong
Author-X-Name-Last: Zhou
Author-Name: Xue Li
Author-X-Name-First: Xue
Author-X-Name-Last: Li
Author-Name: Yaqin Su
Author-X-Name-First: Yaqin
Author-X-Name-Last: Su
Title: The Impacts of Education on Domestic Violence: Evidence from China
Abstract: 
 Exploiting the Compulsory Schooling Law reform in China, this paper investigates the causal impact of education on the likelihood of women experiencing domestic violence from their spouse. The local average treatment effects (LATE) obtained through the instrument variables approach indicate that one additional year of schooling lowers women’s likelihood of experiencing physical and sexual abuse from their spouse by 7.1 and 3.4 percentage points, respectively. Further, we find that the causal impacts of education are more pronounced in the subsample of women who are less educated, women in rural areas, and women in regions with relatively lower human capital endowment prior to the reform. Additionally, we explore various channels and find that change in attitudes towards gender roles may be an important channel explaining the impact of increased female education on lowering domestic violence. We also address the possible bias caused by migration of individuals, and our results remain robust.
Journal: Applied Economics
Pages: 6702-6720
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1937504
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937504
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6702-6720




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Addendum
Journal: Applied Economics
Pages: 6789-6789
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2020.1775028
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1775028
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6789-6789




Template-Type: ReDIF-Article 1.0
Author-Name: Jihun Bae
Author-X-Name-First: Jihun
Author-X-Name-Last: Bae
Author-Name: Jeong Hwan Joo
Author-X-Name-First: Jeong Hwan
Author-X-Name-Last: Joo
Title: CEO turnover, leadership vacuum, and stock market reactions
Abstract: 
 CEO departures with a delay in successor appointment create a leadership vacuum inducing operational disruption and strategic uncertainty. Such departures also produce turnaround benefits from cutting ties with a poorly performing CEO and by allowing additional time to search for a qualified successor. Prior studies fail to disentangle these perceived costs and benefits associated with CEO dismissal. After filtering out the turnaround benefits, we find that the market reacts incrementally negatively to CEO departure announcements with a delay in successor appointment than those without such delay, capturing incremental switching costs caused by a leadership vacuum. We also find that the leadership vacuum cost is larger in a more volatile environment or with abandonment of a relay succession plan. Our findings contribute to CEO turnover literature by suggesting that a temporary leadership vacuum is an indicator of abandonment of a succession plan that has been influenced by a poorly performing CEO and that such abandonment creates an opportunity to achieve performance turnaround through a better successor.
Journal: Applied Economics
Pages: 6752-6769
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1927969
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927969
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6752-6769




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Iania
Author-X-Name-First: Leonardo
Author-X-Name-Last: Iania
Author-Name: Marco Lyrio
Author-X-Name-First: Marco
Author-X-Name-Last: Lyrio
Author-Name: Rubens Moura
Author-X-Name-First: Rubens
Author-X-Name-Last: Moura
Title: Bond risk premia in emerging markets: evidence from Brazil, China, Mexico, and Russia
Abstract: 
 We employ an affine term structure model with no-arbitrage restrictions and unspanned risk factors to analyse the global and domestic determinants of bond risk premia in four major emerging markets (Brazil, China, Mexico, and Russia). Among the risk factors, we select national inflation and economic growth, and the country-specific nominal exchange rate against the US dollar as the variables related to the domestic economy. We include a measure of worldwide economic activity, the Market Volatility Index (VIX), and an aggregate price index of commodities in the group of global factors. Our model captures (long-term) movements of realized risk premia and indicates that global economic and financial factors play a relevant role in explaining country-specific bond risk premia dynamics. In contrast, domestic variables carry little explanatory power to rationalize risk premia developments in these four economies. We also provide evidence of heterogeneous responses of country-specific risk premia to global and domestic shocks.
Journal: Applied Economics
Pages: 6721-6738
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1937505
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937505
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6721-6738




Template-Type: ReDIF-Article 1.0
Author-Name: Benan Zeki Orbay
Author-X-Name-First: Benan Zeki
Author-X-Name-Last: Orbay
Author-Name: Yigit Aydede
Author-X-Name-First: Yigit
Author-X-Name-Last: Aydede
Author-Name: Narod Erkol
Author-X-Name-First: Narod
Author-X-Name-Last: Erkol
Title: Why does field of study–occupation mismatch have no effect on wages in Turkish labour markets?
Abstract: 
 The Turkish labour market has undergone remarkable changes in the last two decades. An important development is the rising number of university graduates: The aim of this study is to explore whether the Turkish economy has undergone sufficient technological progress to favour more skilled workers, by analysing the effects of skill mismatch on wages in the Turkish labour market. Using three recent Labour Force Surveys from 2014 to 2016, we show that a significant proportion of university graduates are overeducated for their jobs. This descriptive finding in itself would not necessarily indicate a fundamental education-specific mismatch problem, but a transition in labour markets following rapid structural shifts in a developing economy. However, our findings also show that the most suitable jobs for university graduates may not require specialization in any field of study in Turkey. Both findings imply that supply and demand for skilled workers may be in short-term disequilibrium leading to surpluses in different skills in Turkish labour markets consistent with the recent evidence for constant relative real wages for skilled workers.
Journal: Applied Economics
Pages: 6683-6701
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1937500
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937500
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6683-6701




Template-Type: ReDIF-Article 1.0
Author-Name: Michèle Breton
Author-X-Name-First: Michèle
Author-X-Name-Last: Breton
Author-Name: Bertrand Crettez
Author-X-Name-First: Bertrand
Author-X-Name-Last: Crettez
Author-Name: Naila Hayek
Author-X-Name-First: Naila
Author-X-Name-Last: Hayek
Title: Corporate social responsibility, profits, and welfare in a duopolistic market
Abstract: 
 We consider a two-stage game in a differentiated duopoly, where firms can pursue both a profit and a socially responsible objective. We assume that the maximum willingness-to-pay of consumers increases with the weights given by firms to their social objective, and that the social objective has a negative impact on the firms’ output. In the first stage of the game, the firms decide on the weight of their social objective and, in the second stage, firms compete à la Cournot. We show that accounting for social concerns in the firms’ objective is generally profitable, and that lower output and higher profits can be attained in equilibrium when the impact of firms’ social awareness on consumers’ willingness to pay is above a given threshold that depends on the products substitutability parameter. However, we find that the impact of firms’ social awareness on consumers’ and total welfare is ambiguous.
Journal: Applied Economics
Pages: 6897-6909
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1950907
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1950907
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6897-6909




Template-Type: ReDIF-Article 1.0
Author-Name: Lucrezia Fanti
Author-X-Name-First: Lucrezia
Author-X-Name-Last: Fanti
Author-Name: Dario Guarascio
Author-X-Name-First: Dario
Author-X-Name-Last: Guarascio
Author-Name: Matteo Tubiana
Author-X-Name-First: Matteo
Author-X-Name-Last: Tubiana
Title: Skill mismatch and the dynamics of Italian companies’ productivity
Abstract: 
 This work explores the relationship between labour productivity and skill (mis) match relying on a unique database integrating information at both the firm and the worker level. The analysis is based on a novel skill match indicator providing actual and qualitatively detailed information on the demand/supply of skills. Focusing on a sample of Italian limited liability companies observed during 2012, 2014 and 2017, we show that the ability to match their skills need via new hires is always positively correlated to companies’ labour productivity. This result is robust to the inclusion of variables accounting for sectoral-level training intensity, firm-level recruitment behaviour, a capillary set of firm-level controls and across size classes.
Journal: Applied Economics
Pages: 6790-6803
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1948963
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1948963
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6790-6803




Template-Type: ReDIF-Article 1.0
Author-Name: Liming Chen
Author-X-Name-First: Liming
Author-X-Name-Last: Chen
Author-Name: Zhi Zhang
Author-X-Name-First: Zhi
Author-X-Name-Last: Zhang
Author-Name: Ziqing Du
Author-X-Name-First: Ziqing
Author-X-Name-Last: Du
Author-Name: Lingling Deng
Author-X-Name-First: Lingling
Author-X-Name-Last: Deng
Title: Heterogeneous determinants of the exchange rate market in China with structural breaks
Abstract: 
 This paper identifies a structural break in exchange rate returns from July 2005 to May 2020 using the iterated cumulative sums of squares (ICSS) algorithm. Then we explore the changing effect of determinants on exchange rates based on the time-varying parameter structural Vector AutoRegression (TVP-SVAR) model. Empirically, we find a single break based on exchange rate returns and caused by regime reform. Further analysis suggests a significant change in the shocks to inflation, foreign exchange reserves, oil prices, and short-term interest rates. In addition, the domestic and international determinants of exchange rates are heterogeneous over different periods in the short and long run. In the short run, the relation between exchange rates and inflation, the interest rate, foreign exchange reserves, and oil price, is significantly negative before August 2015. However, since August 2015, the relationship between inflation and exchange rates in China has been positive. Only short-term interest rates are affected by structural changes. This study can guide policy makers in formulating the appropriate exchange rate regime to attain sustainable market efficiency over the long run.
Journal: Applied Economics
Pages: 6839-6854
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949432
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949432
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6839-6854




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyu Huang
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Huang
Author-Name: Tao Jin
Author-X-Name-First: Tao
Author-X-Name-Last: Jin
Author-Name: Ji Zhang
Author-X-Name-First: Ji
Author-X-Name-Last: Zhang
Title: Monetary policy, hot money and housing price growth across Chinese cities
Abstract: 
 We use a dynamic hierarchical factor model to identify the national, regional and local factors of the city-level housing price growth in China. During the zero-lower-bound (ZLB) episode in the U.S., local factors account for 78% of variations in the month-on-month city-level housing price growth. However, as the time horizon extends, the national factor gets a larger variance share, reaching 51% in a half-year horizon. This indicates that the city-level housing price growth in China is more of a national phenomenon in the long run. We then use a VAR model to investigate the driving forces of the national factor and find that monetary policy and hot money shocks affect the national housing price growth significantly. A tightening monetary policy shock has a significant negative impact on the national factor, which lasts for more than 2 years. An increase in hot money inflows causes a significant but transitory rise in the national factor. Moreover, we find that the quantitative easing measure adopted by the U.S. Fed is behind the surge of capital inflows into China.
Journal: Applied Economics
Pages: 6855-6877
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949433
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949433
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6855-6877




Template-Type: ReDIF-Article 1.0
Author-Name: Min-Su Chung
Author-X-Name-First: Min-Su
Author-X-Name-Last: Chung
Author-Name: Keunjae Lee
Author-X-Name-First: Keunjae
Author-X-Name-Last: Lee
Title: Women’s pre-marriage income and the division of household labour
Abstract: 
 This study investigates the effects of women’s economic resources on the division of household labour by employing pre-marriage income as a proxy for resources, rather than post-marriage income. Post-marriage income has been substantially used in the literature; however, it would be the consequence rather than the cause of spousal labour division. Since many married women reduce their working hours to focus on household tasks and their income decreases after marriage, the reverse causality could overestimate the economic power effect on housework allocation. Based on pre-marriage income data of South Korean households, the present study shows that women’s high relative income does not significantly decrease their time and share of housework. Furthermore, wives’ economic superiority after marriage over the husbands seems to increase their household labour because the wives intend to restore gender identity. In conclusion, traditional gender norms have a greater influence on the division of housework than economic efficiency. Therefore, policy efforts must encourage couples to share their housework equally, such as gender-neutral education and paternity protection system.
Journal: Applied Economics
Pages: 6804-6819
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1948964
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1948964
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6804-6819




Template-Type: ReDIF-Article 1.0
Author-Name: Yeonjeong Ha
Author-X-Name-First: Yeonjeong
Author-X-Name-Last: Ha
Author-Name: Haejune Oh
Author-X-Name-First: Haejune
Author-X-Name-Last: Oh
Title: Prior beliefs in market efficiency and fund cash flows
Abstract: 
 This study investigates the effect of fund investors’ prior beliefs on flow-performance relationships. Nonmonotonic inflow- and outflow-performance relationships, with a monotonic relationship in net flows, suggest that more investors exhibit return-chasing behaviour but that some investors behave in a strongly biased manner; these phenomena exist in high-risk funds with extreme performance. With regard to investors’ prior beliefs in market efficiency to the fund performance, inflows and outflows have a monotonic relationship with performance. From these findings, the nonmonotonic relationship can be explained by the biased behaviour resulting from the lack of beliefs in market efficiency.
Journal: Applied Economics
Pages: 6878-6896
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949434
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949434
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6878-6896




Template-Type: ReDIF-Article 1.0
Author-Name: Zhao Zhang
Author-X-Name-First: Zhao
Author-X-Name-Last: Zhang
Author-Name: Caoyuan Ma
Author-X-Name-First: Caoyuan
Author-X-Name-Last: Ma
Author-Name: Han Hu
Author-X-Name-First: Han
Author-X-Name-Last: Hu
Author-Name: Hao Li
Author-X-Name-First: Hao
Author-X-Name-Last: Li
Title: Will infectious disease outbreaks cause a decline in investment of real sector firms? Evidence form 2003 SARS outbreak in China
Abstract: 
 The Novel Coronavirus (COVID-19) outbreak prompts researchers and policy makers to re-evaluate the impact of infectious disease on economy. Taking SARS outbreak in 2003 as a quasi-natural experiment, we examined the impact of infectious diseases on Chinese real sector’s investment through a difference in difference (DID) approach. The empirical results show that after the outbreak of SARS, the investment of China’s real sector firms had increased significantly. This conclusion is verified by several robustness tests. The mechanism tests indicate that the SARS epidemic could increase the investment of real sector firms through two paths. First of all, the outbreak of the epidemic led to dramatic fluctuations in the capital market, then companies shifted their assets from the financial market to the relatively low-risk real sector; additionally, in response to the outbreak of SARS, companies and the government reduced operating costs and fees, resulting in a synergistic effect which also increased investment of the real sector.
Journal: Applied Economics
Pages: 6820-6838
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949431
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949431
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6820-6838




Template-Type: ReDIF-Article 1.0
Author-Name: Weilin Liu
Author-X-Name-First: Weilin
Author-X-Name-Last: Liu
Author-Name: Qian Cheng
Author-X-Name-First: Qian
Author-X-Name-Last: Cheng
Title: Global production network, technology spillover, and shock transmission
Abstract: 
 This study presents a new method to analyse the impact of exogenous shock and its transmission mechanism within the global production network, based on scenarios of the COVID-19 pandemic. We decompose domestic and international technology spillovers and introduce them into an economic growth model to investigate the elasticities of factor inputs and knowledge spillovers through industrial linkages, and eventually estimate a model with spatial specifications. The results from the scenario simulations suggest that the global total output is projected to fall by 3.60% and 8.41% under the V-shaped and L-shaped recovery scenarios, respectively, and that the propagation through input-output linkages is an important channel that causes global economic fluctuations. Economies at the hub of the production network, that is, the United States, China, and Germany, are the most seriously affected. Structural decomposition analysis results indicate that the shortage of intermediate inputs supply is the main driver of output decline, followed by the blockage of technology diffusion, and lastly, the reduction of labour supply.
Journal: Applied Economics
Pages: 7020-7036
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1958140
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1958140
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:7020-7036




Template-Type: ReDIF-Article 1.0
Author-Name: Zhao Li
Author-X-Name-First: Zhao
Author-X-Name-Last: Li
Author-Name: Bingyang Lv
Author-X-Name-First: Bingyang
Author-X-Name-Last: Lv
Title: Total factor productivity of Chinese industrial firms: evidence from 2007 to 2017
Abstract: 
 Accurately measuring industrial total factor productivity (TFP) is considered vital to a country’s economic system. However, in China, the measurement of industrial TFP has been difficult owing to a lack of firm-level data. This study is the first to measure TFP of Chinese industrial enterprises from 2007 to 2017 and makes a rich heterogeneity analysis based on the National Taxation Survey Database (NTSD). Results show that the weighted TFP rises from 3.65 in 2007 to 4.69 in 2017, with an average growth rate of 2.58%. There are obvious differences in industrial TFP among different enterprise sizes, industries, ownership types, export types, and regions, and the growth of TFP tends to have a converge trend. By assessing the ‘Productivity Paradox’ in China, we also find that Chinese exporting manufacturing enterprises are more productive than non-exporting ones.
Journal: Applied Economics
Pages: 6910-6926
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1954592
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1954592
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6910-6926




Template-Type: ReDIF-Article 1.0
Author-Name: Sam Williams
Author-X-Name-First: Sam
Author-X-Name-Last: Williams
Author-Name: Alasdair Crookes
Author-X-Name-First: Alasdair
Author-X-Name-Last: Crookes
Author-Name: Karli Glass
Author-X-Name-First: Karli
Author-X-Name-Last: Glass
Author-Name: Anthony J. Glass
Author-X-Name-First: Anthony J.
Author-X-Name-Last: Glass
Title: COVID-19 mortalities in England and Wales and the Peltzman offsetting effect
Abstract: 
 There are two approaches to measuring COVID-19 deaths – ‘COVID associated deaths’ and ‘excess deaths’. An excess deaths framework is preferable, as there is measurement error in COVID associated deaths, due to issues relating to imperfect information about deaths that are directly attributable to COVID-19. The standard measure of excess deaths (comparison of deaths to a 5-year average) is subject to an omitted variables problem, as it attributes the entirety of the variation in mortality to COVID-19. We propose a method to estimate a refined measure of COVID-19 excess deaths in England and Wales that addresses the omitted impact of the first blanket lockdown. Using the counterfactual, we obtain a first stage estimate of excess deaths. In the second stage, this is decomposed into estimates of a refined measure of COVID-19 excess deaths and the excess mortality impact of lockdown. Our results suggest: (i) a refined estimate of mean weekly COVID-19 excess deaths that is 63% of standard excess deaths; and (ii) a positive net excess mortality impact of the lockdown. We make a case that (ii) is due to the Peltzman offsetting effect, i.e. the intended mortality impact of the lockdown was more than offset by the unintended impact.
Journal: Applied Economics
Pages: 6982-6998
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1955089
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1955089
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6982-6998




Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim
Author-X-Name-Last: Idi Cheffou
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Hachmi Ben Ameur
Author-X-Name-First: Hachmi
Author-X-Name-Last: Ben Ameur
Title: Conventional and Islamic stock market liquidity and volatility during COVID 19
Abstract: 
 The coronavirus pandemic has impacted several stock markets worldwide. Among other countries, the US has endured a significant impact of the pandemic, with over 605,000 deaths. This study investigates the effect of COVID-19 on the liquidity and volatility of the US conventional and Islamic stock indexes to assess their efficiency in a linear and nonlinear frammeworks. We use different stock market data (stock prices and trading volumes) and COVID-19 statistics. In particular, we specify liquidity and volatility differently, compute the speed of COVID-19 transmission, rely on robust linear and nonlinear regressions before and during the pandemic to determine different forms of coronavirus effects. The study finds that both liquidity and volatility (regardless of the proxy under consideration) exhibit an important time variation. Second, we find that the variation of contamination and death speeds related to the pandemic has been nonlinearly driving market trading, liquidity, and volatility, suggesting a significant reaction of stock market to exogenous news related to the coronavirus outbreak and inefficiency of these markets. Considering this dependency is crucial to improving the forecasting of stock market dynamics. Further, we find that Islamic funds are not more resilient than conventional funds towards the pandemic.
Journal: Applied Economics
Pages: 6944-6963
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1954595
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1954595
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6944-6963




Template-Type: ReDIF-Article 1.0
Author-Name: Ting Liu
Author-X-Name-First: Ting
Author-X-Name-Last: Liu
Author-Name: Lihong Wang
Author-X-Name-First: Lihong
Author-X-Name-Last: Wang
Title: Do competitors benefit from the resignation of politically connected independent directors? Evidence from China
Abstract: 
 Using a sample of Chinese listed firms in the Shanghai and Shenzhen Stock Exchange during the period of 2012–2017, this paper studies the impact of losing political resources on the competitors’ value by exploiting exogenous shock from the 18th decree which forces politically connected independent directors to resign in China. Our empirical results show that competitors of Chinese listed firms with politically connected independent directors react positively to the resignations of politically connected independent directors. Moreover, when politically affiliated independent directors resign in a Chinese listed firm, its competitors exhibit an increase in accounting performance and an ease of access to government subsidies and external finance. In addition, the above relation holds for a subsample analysis of the resignation of politically connected independent directors in Chinese listed non-state-owned enterprises (non-SOEs) and their non-SOE competitors.
Journal: Applied Economics
Pages: 6999-7019
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1956678
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1956678
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6999-7019




Template-Type: ReDIF-Article 1.0
Author-Name: Huayan Zhang
Author-X-Name-First: Huayan
Author-X-Name-Last: Zhang
Author-Name: Yao Li
Author-X-Name-First: Yao
Author-X-Name-Last: Li
Author-Name: Jianqing Ruan
Author-X-Name-First: Jianqing
Author-X-Name-Last: Ruan
Title: Winner or loser: urban work experience and rural labour occupational change after return migration
Abstract: 
 Recent decades have witnessed return migration of rural labour. Whether urban work experience could help return migrant rural labour engaged in non-agricultural employment and archive career development? In this article, we employ 2014 China Labor Dynamic Survey (CLDS) data set to investigate the effect of outgoing working experience on return migrated labour’s non-agricultural occupational change. This article indicates that, compared with agricultural employment, return migrated labour is more inclined to engage in waged employment than remaining village labour. What’s more, there is an inverted U-shaped relationship between outside working time and non-agricultural employment preference. Based on the above research, this article puts forward relevant policy recommendations.
Journal: Applied Economics
Pages: 6964-6981
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1954596
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1954596
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6964-6981




Template-Type: ReDIF-Article 1.0
Author-Name: Joyce Chigome
Author-X-Name-First: Joyce
Author-X-Name-Last: Chigome
Author-Name: Zurika Robinson
Author-X-Name-First: Zurika
Author-X-Name-Last: Robinson
Title: DETERMINANTS OF TAX CAPACITY AND TAX EFFORT IN SOUTHERN AFRICA: AN EMPIRICAL ANALYSIS
Abstract: 
 Literature posits that numerous economic and institutional factors limit the amount of taxes that a country can raise. Against this background, the substantive aim of this study was to assess the determinants of tax capacity and tax effort in the SADC. A multi-step procedure was followed to estimate determinants of tax capacity and tax effort using stochastic tax function and unbalanced panel data for 13 SADC countries.11The SADC countries included Angola, Botswana, Eswatini, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia and Zimbabwe. The study disentangled the error term to estimate the random effects separately from tax effort to capture the time-invariant country-specific effects. Further, tax effort was classified as persistent (long-run) and transient (short-run). The study was able to estimate the determinants of tax effort and to rank each member state or country according to its tax effort. The quantitative analysis indicate that financial deepening, economic development and trade openness influence tax capacity, while corruption and inflation influence tax effort. The SADC region has low persistent tax effort, implying that improving tax administration has superseded tax policy reforms. This result is augmented by the fact that tax legislation efforts were largely successful in tax administration but rather limited given tax policy.
Journal: Applied Economics
Pages: 6927-6943
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1954593
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1954593
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6927-6943




Template-Type: ReDIF-Article 1.0
Author-Name: Gert Bijnens
Author-X-Name-First: Gert
Author-X-Name-Last: Bijnens
Author-Name: Jozef Konings
Author-X-Name-First: Jozef
Author-X-Name-Last: Konings
Author-Name: Stijn Vanormelingen
Author-X-Name-First: Stijn
Author-X-Name-Last: Vanormelingen
Title: The impact of electricity prices on European manufacturing jobs
Abstract: 
 Increased investment in clean electricity in combination with a rising cost of carbon will most likely lead to higher electricity prices. We examine the impact from changing electricity prices on European manufacturing employment and find a negative elasticity for the most electricity-intensive sectors. Since these sectors are unevenly spread across countries and regions, the negative employment impact from increasing electricity prices will also be unevenly spread. Policymakers should be well aware of this and take mitigating actions to ensure a positive public sentiment towards environment-related price increases. (JEL J23, H23, Q28, Q43)
Journal: Applied Economics
Pages: 38-56
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1951647
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1951647
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:38-56




Template-Type: ReDIF-Article 1.0
Author-Name: Michael T. Belongia
Author-X-Name-First: Michael T.
Author-X-Name-Last: Belongia
Author-Name: Peter N. Ireland
Author-X-Name-First: Peter N.
Author-X-Name-Last: Ireland
Title: Strengthening the second pillar: a greater role for money in the ECB’s strategy
Abstract: 
 Like most central banks, the European Central Bank makes and implements its monetary policy decisions by adjusting its targets for short-term interest rates in response to information gleaned from a wide range of macroeconomic indicators and projections. Unlike other central banks, however, the ECB also monitors money growth as a ‘cross check’ against the macroeconomic analysis that guides its policies of interest rate management. This paper argues that making further use of this ‘second pillar’ would help the ECB to better achieve its nominal objectives in the present environment of exceptionally low interest rates. By modifying the ‘P-star’ framework – a small-scale model with Quantity Theory foundations – the paper shows how the ECB could set a quantitative ‘reference value’ for Divisia money growth to stabilize nominal spending around a target path, even while its traditional interest rate policies are constrained by the zero lower bound.
Journal: Applied Economics
Pages: 99-114
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1959895
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1959895
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:99-114




Template-Type: ReDIF-Article 1.0
Author-Name: Jin Xu
Author-X-Name-First: Jin
Author-X-Name-Last: Xu
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: Would carbon tax be an effective policy tool to reduce carbon emission in China? Policies simulation analysis based on a CGE model
Abstract: 
 In China’s 2019 VAT reform, the VAT rate for manufacturing was adjusted from 16% to 13%. This inevitably promotes manufacturing production and triggers a substantial increase in carbon emissions. Would carbon tax be an effective policy tool to offset the negative externalities of the VAT reform on carbon emissions? We construct a multi-regional dynamic-recursive computable general equilibrium (CGE) model to evaluate this possibility and to investigate the potential impacts on the economy, energy, and environment arising from this reform. The scenarios set includes the VAT reform policy, a carbon tax, and three combined policies. The results show that while China’s VAT reform is a positive fiscal policy that can boost long-lasting macroeconomic development, it has a negative impact on environmental protection. A carbon tax can significantly curb traditional energy consumption and emissions, but it would hinder economic development. Combined policies yield ‘double dividends’, that is, a long-run increase in macroeconomy and emissions reductions will be achieved, helping China to attain its Intended Nationally Determined Contributions goal. The combination of VAT reform and a stepped carbon tax maintains a more stable economic growth while sustaining carbon emission abatement.
Journal: Applied Economics
Pages: 115-134
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1961119
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1961119
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:115-134




Template-Type: ReDIF-Article 1.0
Author-Name: Tianheng Wang
Author-X-Name-First: Tianheng
Author-X-Name-Last: Wang
Title: The peer effects of preschool: evidence from China’s middle school
Abstract: 
 The paper investigates the impact of peer enrolment in preschool on students’ cognitive and noncognitive outcomes in China’s middle schools and explores the potential mechanisms through which the peer effects may operate. Using the exogenous variation in peer preschool enrolment across classes within schools, the study finds that a higher proportion of classmates who have preschool experience consistently has positive impacts on students’ academic achievement. I also find that peer preschool enrolment has spillover effects on students’ noncognitive outcomes. The mechanism analysis reveals that the peer effects may work through inter-student relationships, class and school atmosphere, and behaviours of students’ friends.
Journal: Applied Economics
Pages: 1-18
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1951442
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1951442
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:1-18




Template-Type: ReDIF-Article 1.0
Author-Name: Noureddine Benlagha
Author-X-Name-First: Noureddine
Author-X-Name-Last: Benlagha
Author-Name: Salaheddine El Omari
Author-X-Name-First: Salaheddine
Author-X-Name-Last: El Omari
Title: What determines the dependence between stock markets - crisis or financial and economic fundamentals?
Abstract: 
 This paper investigates the economic and financial fundamentals that determine the dynamic linkage between Qatar and a set of selected international stock markets. To this end, we used different dynamic copula constructions to extract the series of time-varying degrees of dependence. Then, by estimating a quantile regression, we identified several economic and financial variables that significantly contribute to explaining the dynamic patterns of dependence among the studied stock markets. These include the returns of the Qatar stock market, crude oil prices, gold prices, the volatility of the S&P 500 index, and the world economic policy uncertainty index. The results obtained show that the fluctuations in these variables significantly influence the structure of dependence between the studied stock markets.
Journal: Applied Economics
Pages: 19-37
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1951443
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1951443
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:19-37




Template-Type: ReDIF-Article 1.0
Author-Name: Navarat Temsumrit
Author-X-Name-First: Navarat
Author-X-Name-Last: Temsumrit
Title: Democracy, institutional quality and fiscal policy cycle: evidence from developing countries
Abstract: 
 Economists usually prescribe countercyclical fiscal policies to stabilize economies: government spending should increase during economic downturns and decrease during booms. Yet, empirical research has documented procyclical fiscal policy in several democratic developing countries. Using an updated dataset of 63 developing countries from 1980 to 2013, this article robustly shows procyclical fiscal policy in democratic and non-democratic developing countries. The essence of this paper is controlling endogeneity issues by using the generalized method of moment (GMM) for the dynamic panel data model and investigating the interaction between democracy and the quality of democratic institutions in affecting the fiscal policy cycle. This article finds that an improvement in the quality of institutions plays a vital role in restraining procyclical fiscal policy and these effects are more prominent in democratic countries than non-democratic ones.
Journal: Applied Economics
Pages: 75-98
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1959894
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1959894
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:75-98




Template-Type: ReDIF-Article 1.0
Author-Name: Dweepobotee Brahma
Author-X-Name-First: Dweepobotee
Author-X-Name-Last: Brahma
Author-Name: Debasri Mukherjee
Author-X-Name-First: Debasri
Author-X-Name-Last: Mukherjee
Title: Early warning signs: targeting neonatal and infant mortality using machine learning
Abstract: 
 This article uses a nation-wide household survey data from India and identifies important predictors of neonatal and infant mortality using multiple machine learning (ML) techniques. The consensus on the leading predictors from the interpretable ML algorithms (that we use) serve as early warning signs of neonatal and infant mortality. This enables us to identify a ‘high-mortality risk’ group of mothers and infants – an important goal of India’s ‘India Newborn Action Plan’. This high-risk group comprises firstborns, mothers with prior deaths or several previous births, newborns suffering from complicated deliveries, small size at birth and unvaccinated infants. We identify early newborn care, folic acid supplements and conditional cash transfer (Janani Suraksha Yojana) as the most effective policy interventions. Given the imbalanced nature of the dependent variable (‘events’ being rarer than ‘non-events’) we use additional ML methods (along with the commonly used ones) that are tailor-made for ‘rare-event’ prediction for robustness checks. We also use an evaluation measure called Area under Precision Recall Curve that is tailored for measuring prediction accuracy with imbalanced data. Our analysis sheds light on policy relevance and suggests some new policy prescriptions such as close monitoring of at-risks babies including females and those with small birth-size.
Journal: Applied Economics
Pages: 57-74
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1958141
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1958141
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:57-74




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Author-Name: Sharmistha Self
Author-X-Name-First: Sharmistha
Author-X-Name-Last: Self
Title: Technology in agriculture and structural change: an Asian perspective
Abstract: 
 Structural change is important in the overall development process. This paper seeks to examine how productivity growth in agriculture influences this process. In particular, technology in agriculture is divided into two types: labour using, land saving (biochemical) and labour saving, land using (mechanical). Some have argued that only labour saving (mechanical) technology promotes the shift of labour into manufacturing, not labour using (biochemical) technology. However, estimations utilizing data from 10 Asian nations indicate that both types of technologies promote structural change. Thus, investments in such technologies will promote structural change. Additional results indicate that labour productivity growth in services is complementary to structural change. In addition, openness to trade and foreign direct investment and diversification away from natural resource abundance as well as avoiding exchange rate overvaluation also promote structural change.
Journal: Applied Economics
Pages: 145-154
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963660
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963660
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:145-154




Template-Type: ReDIF-Article 1.0
Author-Name: Zhige Wu
Author-X-Name-First: Zhige
Author-X-Name-Last: Wu
Author-Name: Alfons Weersink
Author-X-Name-First: Alfons
Author-X-Name-Last: Weersink
Author-Name: Alex Maynard
Author-X-Name-First: Alex
Author-X-Name-Last: Maynard
Title: Fuel-feed-livestock price linkages under structural changes
Abstract: 
 The large-scale diversion of crops into mandates-driven biofuels since early 2000s, has raised concerns about impacts of biofuel policies on food prices. This study examines crude oil-corn-livestock dynamic linkages from January 1987 until December 2019 in Ontario, Canada. A significant structural break is identified in March 2011 as biofuel policy impacts become fully implemented and splits the three-decade period into pre- and post-break sub-periods. A nonlinear autoregressive distributed lag (NARDL) approach is employed since it allows prices to be tied by asymmetric relationships both in the short- and long-run. The NARDL model bounds test results indicate that crude oil and corn prices have a long-run connection with livestock prices in both sub-periods. In the post-break period, corn price has an asymmetric effect on cattle price in the long-run, with negative shocks in the corn price leading to a greater intensity on the cattle price than positive shocks. The presence of short-run asymmetry is evident in the impacts of crude oil price on both cattle and hog prices. However, the above asymmetric effect is insignificant in the pre-break period.
Journal: Applied Economics
Pages: 206-223
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1965082
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1965082
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:206-223




Template-Type: ReDIF-Article 1.0
Author-Name: Bo Cheng
Author-X-Name-First: Bo
Author-X-Name-Last: Cheng
Author-Name: Baoyin Qiu
Author-X-Name-First: Baoyin
Author-X-Name-Last: Qiu
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Author-Name: Hongxia Zhang
Author-X-Name-First: Hongxia
Author-X-Name-Last: Zhang
Title: Does a green tax impact a heavy-polluting firm’s green investments?
Abstract: 
 By leveraging the quasi-natural experiment of the passage of the Environmental Protection Tax Law in late 2016 in China that imposed a pollution tax (green tax) on firms, we examine the impact of this tax on the green investments of heavy-polluting firms. Our difference-in-differences results show that the green tax enhances green investments of heavy-polluting firms. Specifically, firm-level green investments of heavy-polluting firms increased by approximately 38% after the green tax than before the green tax relative to an average firm. The findings are robust to a propensity score matching method, fixed-effects models, placebo tests, dynamic effect analysis, and after excluding alternative explanations. Additional analysis suggests that the positive effect of the green tax on green investments is more pronounced for large firms, state-owned firms, and firms with high analyst following. Collectively, we find a green tax policy contributes to green investments.
Journal: Applied Economics
Pages: 189-205
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963663
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963663
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:189-205




Template-Type: ReDIF-Article 1.0
Author-Name: Dinkar Kuchibhotla
Author-X-Name-First: Dinkar
Author-X-Name-Last: Kuchibhotla
Title: Multi-dimensional inequality in health: evidence from India
Abstract: 
 Estimation of multi-dimensional welfare measures are gaining popularity. Health is multi-dimensional and efforts to estimate multi-dimensional health inequality are fairly nascent. I estimate inequality in health using a normative index and decompose it into component parts. Inequality increases as health attributes become complementary. Inequalities at the state level as well as by caste and gender, are negatively associated with the level of social and economic development.
Journal: Applied Economics
Pages: 224-233
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1965532
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1965532
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:224-233




Template-Type: ReDIF-Article 1.0
Author-Name: Johanna Scholz
Author-X-Name-First: Johanna
Author-X-Name-Last: Scholz
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Using a matching decomposition to examine the gender technology gap in Tanzanian agriculture
Abstract: 
 The promotion of gender equality in access to productive resources relies on multiple valid arguments. However, whether equal resource endowment would result in equal agricultural productivity is controversial. Using panel data from Tanzania, we examine the agricultural technology levels of male and female managed plots, and find that female farmers operate on a significantly lower technology level than their male counterparts. Thus, even if female farmers used the same amount of agricultural inputs and were equally efficient as male farmers, they would probably still attain lower yields. We employ a matching and decomposition approach to analyse whether the difference in technology between male and female managed plots originates from observations outside the common support or different distributions of productive resources, household characteristics, or crop choice within the common support. We find that most plots under female and male management are well comparable and fall into the common support, but different distributions of considered characteristics cannot sufficiently explain the observed differences in levels of technology among female and male farmers. Only among the few farmers that apply inorganic fertilizer, female and male farmers work on a similar technology level.
Journal: Applied Economics
Pages: 155-169
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963661
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963661
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:155-169




Template-Type: ReDIF-Article 1.0
Author-Name: Victor Lapshin
Author-X-Name-First: Victor
Author-X-Name-Last: Lapshin
Title: Model-free nonparametric bounds for zero-coupon interest rates in bond markets without the no arbitrage principle
Abstract: 
 Real-world market quotes of bonds can sometimes contradict the no arbitrage principle within the discounted cash flow model. This makes some kinds of no-arbitrage-based analyses impossible, e.g., inferring the bounds for the term structure of interest rates. Instead of using a more sophisticated model to account for pricing peculiarities, we propose a replacement for the no arbitrage principle. While being theoretically plausible, it does not get contradicted by the data – thus, we can infer the same kind of term structure bounds from it, even given the contradictions with the no arbitrage principle. Using a dataset of Russian sovereign bond quotes, we show that the no arbitrage inconsistency problem arises in 10–20% of cases and that the proposed approach successfully overcomes it.
Journal: Applied Economics
Pages: 135-144
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963659
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963659
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:135-144




Template-Type: ReDIF-Article 1.0
Author-Name: Jiaman Li
Author-X-Name-First: Jiaman
Author-X-Name-Last: Li
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: Do pollutant discharge fees affect labor demand? evidence from china’s industrial enterprises
Abstract: 
 The tradeoff between employment and the environment has become an increasingly important topic. By employing two enterprise-level datasets and a city-level dataset in China for the period 1999–2012, this study investigates the influence of pollutant discharge fees on the labour demand in manufacturing enterprises. Besides, considering the significant differences among cities, industries, and individuals in China, we perform a series of heterogeneity analysis. The study also explores the mediation impact mechanism from the manufacturing cost perspective, i.e. labour cost effect, energy cost effect, and equipment cost effect. The estimated results show that: (1) The more stringent pollutant discharge fees can significantly reduce the labour demand of Chinese manufacturing enterprises; for each 1% increase in the price of pollutant discharge fees, labour demand decreases by approximately 0.264%; (2) labour demand for cities with a low proportion of secondary industries, industries with low pollution intensity, and domestic private-owned enterprises tend to be influenced more by pollutant discharge fees; and (3) the labour cost effect and energy cost effect are both significant mediators, while the equipment cost effect is not significant. The above findings can provide feasible policy implications for improving environmental protection taxes.
Journal: Applied Economics
Pages: 170-188
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963662
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963662
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:170-188




Template-Type: ReDIF-Article 1.0
Author-Name: Hande Küçük
Author-X-Name-First: Hande
Author-X-Name-Last: Küçük
Author-Name: Pınar Özlü
Author-X-Name-First: Pınar
Author-X-Name-Last: Özlü
Author-Name: Çağlar Yüncüler
Author-X-Name-First: Çağlar
Author-X-Name-Last: Yüncüler
Title: Decomposition of bank loans and economic activity in TURKEY
Abstract: 
 We examine the empirical link between loans and economic activity in Turkey with a focus on the components of loans by borrower (household/business) and by purpose of use (housing/personal) as well as currency of denomination (domestic/foreign). We estimate a separate VAR model for each type of loan and each GDP expenditure item to analyse whether different types of loans have different effects on economic activity and through what channels. According to our empirical results, credit shocks have statistically significant impact on economic activity, especially within the first two quarters. We find that shocks that expand household and TL-denominated business loans by the same rate have quite similar effects on private consumption, final domestic demand and GDP, while household loans has a much smaller impact on investment compared to business loans. While shocks to FX-denominated business loans have significant effect on total investment, they have much weaker effect on private consumption and GDP. The effect of housing loans on investment is found to be comparable to that of business loans, suggesting strong feedback between demand for housing and construction investment. We investigate the robustness of findings to alternative data samples, as well as some alternative identifying restrictions.
Journal: Applied Economics
Pages: 249-279
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1950906
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1950906
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:249-279




Template-Type: ReDIF-Article 1.0
Author-Name: Donata Favaro
Author-X-Name-First: Donata
Author-X-Name-Last: Favaro
Author-Name: Dario Sciulli
Author-X-Name-First: Dario
Author-X-Name-Last: Sciulli
Title: Female long-term labour market outcomes: the role of early-life abilities and education
Abstract: 
 We study how early-life cognitive skills, non-cognitive abilities, and family characteristics influence educational choices and affect later employment outcomes and wages. The analysis was carried out on a cohort of UK females observed at different life stages by adopting the British National Child Development Study database. Our findings provide evidence of how early-life abilities and family characteristics affect both the educational attainment and later labour market outcomes of female workers. However, we found that educational levels interact with early-life abilities, productive characteristics in general, and other characteristics, giving rise to different employment outcomes and income prospects conditioned on educational attainment. Occupational outcomes and wages of low-educated women are more sensitive to factors that are not strictly linked to productivity.
Journal: Applied Economics
Pages: 340-353
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962510
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962510
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:340-353




Template-Type: ReDIF-Article 1.0
Author-Name: Simeon Nanovsky
Author-X-Name-First: Simeon
Author-X-Name-Last: Nanovsky
Title: A new test for optimum currency area with an application to the Central and Eastern European countries
Abstract: 
 This research introduces a new test for optimum currency area that is based on synchronization of monetary policy recommendations. The main advantage over the more traditional synchronization of business cycles is that it takes into account two known determinants of monetary policy: inflation and the output gap. As an application, the test is applied to the EU economies with a particular focus on the Central and Eastern European Countries. Some of these countries have recently joined the euro area, some are the members of ERM II, and the rest are debating whether to fulfill the convergence criteria of adopting the euro. The main findings are that within the last few years the current non-euro area members (with the exception of Bulgaria and Romania) fit the euro area as well as the core euro area countries.
Journal: Applied Economics
Pages: 354-373
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962512
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962512
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:354-373




Template-Type: ReDIF-Article 1.0
Author-Name: Dheeraj Sharma
Author-X-Name-First: Dheeraj
Author-X-Name-Last: Sharma
Author-Name: Shweta Ahalawat
Author-X-Name-First: Shweta
Author-X-Name-Last: Ahalawat
Author-Name: Archana Patro
Author-X-Name-First: Archana
Author-X-Name-Last: Patro
Author-Name: Patanjal Kumar
Author-X-Name-First: Patanjal
Author-X-Name-Last: Kumar
Title: Spot market and derivative segment of equity in India
Abstract: 
 The foremost objective of the manuscript is to predict the volatility and causality between spot and derivative segment of equity in India and also to determine long run relationship between the two. Monthly time-series data of 15 years have been taken, from 2003 to 2019 (pre- and post-financial crisis 2008). The unit root test, GARCH model, Granger Causality test under VECM framework have been smeared to infer the volatility and causality between the spot Nifty and Nifty futures. Johansen co-integration test and VECM have been used to determine the long and short run relationship between the two time series. Regression has been applied to determine the impact of spot market on Stock Futures. The outcomes depict that the two variables have positive impact and statistically significant in the short and long run. There exist fluctuations, volatility and lead lag relationship between the two which will help investors and policymakers to take well-formed decisions.
Journal: Applied Economics
Pages: 326-339
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962509
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962509
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:326-339




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Abubakr Naeem
Author-X-Name-First: Muhammad Abubakr
Author-X-Name-Last: Naeem
Author-Name: Saba Qureshi
Author-X-Name-First: Saba
Author-X-Name-Last: Qureshi
Author-Name: Mobeen Ur Rehman
Author-X-Name-First: Mobeen Ur
Author-X-Name-Last: Rehman
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Title: COVID-19 and cryptocurrency market: Evidence from quantile connectedness
Abstract: 
 This study quantifies the spillover effects among seven cryptocurrencies to explore the spillover characteristics of seven cryptocurrencies, namely, Bitcoin, Ethereum, Ripple, Litecoin, Monero, Stellar, and NEM. The connectedness networks of returns are based on standard VAR and quantile VAR spillovers. In addition, the framework focuses on intact, pre-, and post-COVID-19 crisis sub-sample periods. Our results highlight that Bitcoin, Litecoin, and Ripple are the dominant transmitters to return spillover. The strongest interconnection is found for Bitcoin/Litecoin and Ripple/Sellar pair. Interestingly, Ethereum is the unvarying recipient in the system and is influenced by most of the cryptocurrencies. Further, NEM exhibits no connection with any of the cryptocurrency in the network acting as a potential diversifier. The quantile spillovers suggest increased intensity of connectedness at right and left tails. The sub-sample analysis confirms the low network integration across the cryptocurrencies during pre-COVID period. Finally, the post-COVID period indicates tangled clusters across the cryptocurrencies. The analysis provides contrasting results as obtained in the pre-analysis phase. Implications for investors and policymakers are highlighted in the study.
Journal: Applied Economics
Pages: 280-306
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1950908
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1950908
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:280-306




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Chen-Min Pan
Author-X-Name-First: Chen-Min
Author-X-Name-Last: Pan
Title: Do financial inclusion and R&D matter? Exploring the effect of uncertainty on economic performance
Abstract: 
 Using a dataset that includes 24 developing and developed countries for the period 1984–2017, this research adopts outstanding deposits with commercial banks to GDP ratio and research and development (R&D) expenditure to GDP ratio as main proxies of financial inclusion and R&D, respectively. The empirical results suggest that promoting financial inclusion or R&D can offset the harmful effects of uncertainty on economic performance and that the impact of R&D with uncertainty is statistically significantly greater than the impact of financial inclusion with uncertainty. Moreover, our subsample analyses indicate that the mitigating effects of financial inclusion and R&D exist in nonfinancial crisis periods, developed countries, and the European region. To address endogeneity concerns, we employ six instrumental variables in a two-stage least squares regression (IV-2SLS). Our findings have useful policy implications to government for dealing with economic policy uncertainty for the economy’s benefit.
Journal: Applied Economics
Pages: 307-325
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1950909
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1950909
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:307-325




Template-Type: ReDIF-Article 1.0
Author-Name: Yusuf Ömür Yılmaz
Author-X-Name-First: Yusuf Ömür
Author-X-Name-Last: Yılmaz
Author-Name: Gul Ipek Tunc
Author-X-Name-First: Gul Ipek
Author-X-Name-Last: Tunc
Title: The Macroeconomic Effects of Positive Trend Inflation in a Small Open Economy
Abstract: 
 The existing New Keynesian open economy literature tends to make the simplifying assumption that there is no trend inflation. In this paper, we reformulate the standard open economy model to account for positive trend inflation. We then employ the model to understand the effects of macroeconomic shocks in a small open economy when trend inflation is positive. Our main finding is that allowing for trend inflation significantly affects the dynamics of the model through real exchange rate dynamics rather than the slope of the New Keynesian Philips Curve. Specifically, higher trend inflation induces modestly more persistent real exchange rates’ responses to the shocks. Further incorporation of trend inflation in an open economy enables us to discuss the Purchasing Power Parity and Delayed Overshooting Puzzles.
Journal: Applied Economics
Pages: 234-248
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1876208
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1876208
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:234-248




Template-Type: ReDIF-Article 1.0
Author-Name: Davide Furceri
Author-X-Name-First: Davide
Author-X-Name-Last: Furceri
Author-Name: Fabio Mazzola
Author-X-Name-First: Fabio
Author-X-Name-Last: Mazzola
Author-Name: Pietro Pizzuto
Author-X-Name-First: Pietro
Author-X-Name-Last: Pizzuto
Title: Regional inequalities, economic crises and policies: an international panel analysis
Abstract: 
 This paper examines the effects of economic downturns on regional inequalities. In a sample of 25 OECD countries for 1990–2014 period, we show that economic downturns are associated with a significant and long-lasting reduction in regional inequalities. Expansionary fiscal policy as well as higher share of the European development (cohesion) funds facilitate the response of lagging regions to negative nation-wide shocks, contributing to further stimulate the reduction in regional disparities. Additional evidence suggests that the effect of downturns tends to be larger in economies with a higher initial level of regional disparities in unemployment and human capital endowment.
Journal: Applied Economics
Pages: 484-505
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963414
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963414
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:484-505




Template-Type: ReDIF-Article 1.0
Author-Name: Nader AlKathiri
Author-X-Name-First: Nader
Author-X-Name-Last: AlKathiri
Title: Labour productivity growth and convergence in manufacturing: A nonparametric production frontier approach
Abstract: 
 Labour productivity growth in manufacturing is decomposed into technical efficiency change (movement towards or away from the frontier), technological progress (shifts in the production frontier), and capital accumulation (movement along the frontier) using a nonparametric production frontier method. The results suggest that labour productivity growth is primarily driven by capital accumulation and to a lesser extent technological progress, while technical efficiency is deteriorating over the period 1995–2014. We find that technological progress appears to be non-neutral, as the world manufacturing production frontier expands only at higher capital intensities, benefiting highly industrialized nations. We also find evidence of unconditional convergence in labour productivity for the manufacturing sector. Capital accumulation is the main driver of the observed unconditional convergence, whereas technological change is contributing to divergence rather than convergence. The findings suggest that expanding manufacturing activities through capital accumulation is essential for developing countries to catch-up with developed countries.
Journal: Applied Economics
Pages: 406-429
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963410
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963410
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:406-429




Template-Type: ReDIF-Article 1.0
Author-Name: Xiang Wu
Author-X-Name-First: Xiang
Author-X-Name-Last: Wu
Author-Name: Liang Wu
Author-X-Name-First: Liang
Author-X-Name-Last: Wu
Author-Name: Shujuan Chen
Author-X-Name-First: Shujuan
Author-X-Name-Last: Chen
Title: Long memory and efficiency of Bitcoin during COVID-19
Abstract: 
 The COVID-19 pandemic has raised great attention to the study of its impacts on Bitcoin. We focus on the impacts of the COVID-19 pandemic on the long memory and efficiency of Bitcoin. There exist a few studies on this topic. These studies all ignore the issues of heavy tails and extreme events during COVID-19, which are obstacles to obtaining the reliable continuous time-varying results of long memory and efficiency. After considering the two issues, we first obtain the reliable continuous time-varying results during COVID-19 via sliding window and estimation of Hurst exponent. The other four markets (Ethereum, Binance Coin, S&P 500, and gold spot) are also analysed for comparison. Bitcoin results show that the Bitcoin market keeps efficient during the pandemic and the heavy tails become weaker after the onset of the pandemic. Results of the comparison study show that Bitcoin has similar efficiency with spot gold and is more efficient than Ethereum, Binance Coin, and S&P 500 during the pandemic. This study contributes to current rare literature on the long memory and efficiency of cryptocurrency during COVID-19.
Journal: Applied Economics
Pages: 375-389
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962513
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962513
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:375-389




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Dore
Author-X-Name-First: Timothy
Author-X-Name-Last: Dore
Author-Name: Traci Mach
Author-X-Name-First: Traci
Author-X-Name-Last: Mach
Title: Marketplace lending and consumer credit outcomes: evidence from prosper
Abstract: 
 In 2005, Prosper launched the first peer-to-peer lending website in the US, allowing for consumers to apply for and receive loans entirely online. To understand the effect of this new credit source, we match application-level data from Prosper to credit bureau data. Post application, borrowers’ credit scores increase and their credit card utilization rates fall relative to non-borrowers in the short run. In the longer run, total debt levels for borrowers are higher than those of non-borrowers. Despite increased debt levels relative to non-borrowers, delinquency rates for borrowers are significantly lower.
Journal: Applied Economics
Pages: 390-405
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962514
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962514
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:390-405




Template-Type: ReDIF-Article 1.0
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: S.T. Boris Choy
Author-X-Name-First: S.T. Boris
Author-X-Name-Last: Choy
Author-Name: Biliang Luo
Author-X-Name-First: Biliang
Author-X-Name-Last: Luo
Title: Is small beautiful? Links between agricultural mechanization services and the productivity of different-sized farms
Abstract: 
 Developing agricultural mechanization services is commonly regarded as an important approach to pushing smallholder farmers engaging in modern agricultural production in China. However, whether smallholder farmers can benefit more from agricultural mechanization services is ambiguous. Using household-level data collected from Henan province in China, this study investigates the effect of agricultural mechanization services on the productivity of different-sized farms. The results indicate that the productivity of medium farms benefits more from agricultural mechanization services rather than small and large farms. Further analysis shows that medium farms are more likely to adopt agricultural mechanization services and reveals a positive relationship between the adoption of agricultural mechanization services and farm productivity. The higher rate of adoption of agricultural mechanization services and the related higher productivity of medium farms can be explained by the tendency of large farms to invest in self-owned agricultural machinery and the likelihood that small farms will input more labourers in wheat production. Although Chinese governments aim to develop the social service in agriculture for smallholder farmers, it seems that they do not get positive responses.
Journal: Applied Economics
Pages: 430-442
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963411
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963411
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:430-442




Template-Type: ReDIF-Article 1.0
Author-Name: Jia Liu
Author-X-Name-First: Jia
Author-X-Name-Last: Liu
Author-Name: Xuefeng Pan
Author-X-Name-First: Xuefeng
Author-X-Name-Last: Pan
Author-Name: Yuanyu Qu
Author-X-Name-First: Yuanyu
Author-X-Name-Last: Qu
Author-Name: Chenyu Wang
Author-X-Name-First: Chenyu
Author-X-Name-Last: Wang
Author-Name: Weixing Wu
Author-X-Name-First: Weixing
Author-X-Name-Last: Wu
Title: Air pollution, human capital and corporate social responsibility performance: evidence from China
Abstract: 
 This study examines the impact of air pollution on a firm’s adherence to the principles of corporate social responsibility (CSR), and the role of human capital in this relationship. Basing our analysis on a sample of listed companies in China between 2014 and 2017, we employ regression discontinuity design (RDD) and the two-stage instrumental variable method (IV-2SLS) in determining that air pollution has a significant, negative impact on CSR performance. This negative relationship is more pronounced in companies that are subject to mandatory CSR disclosure requirements, compared to those required to make only voluntary disclosures. In addition, further analysis demonstrates that executives with an overseas background, or with a working experience of finance, choose to work in cities with superior air quality, enhancing their companies’ CSR credentials. Moreover, the increase in the total labour force in these cities, as a result of better air quality, motivates local companies to improve their CSR performance to retain and attract higher calibre employees. Our study provides original evidence that air pollution generates negative economic externalities, and can alter firm behaviour, through the medium of human capital.
Journal: Applied Economics
Pages: 467-483
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963413
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963413
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:467-483




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Francois Gajewski
Author-X-Name-First: Jean-Francois
Author-X-Name-Last: Gajewski
Author-Name: Luc Meunier
Author-X-Name-First: Luc
Author-X-Name-Last: Meunier
Author-Name: Sima Ohadi
Author-X-Name-First: Sima
Author-X-Name-Last: Ohadi
Title: Do sources of money matter in risk-taking behaviour?
Abstract: 
 Assuming that money is fungible, income and wealth affect risk aversion. In the present study, we investigate whether the source of money affects risk-related decision-making. We use the percentage of temporary income and sources of income to capture the heterogeneity of risk-taking behaviour. The results indicate the significant and robust role of the temporary portion of income in explaining risk-taking behaviour: a 1% increase in temporary income corresponds to up to a 12.7% increase in risk-taking. Furthermore, having multiple sources of money is associated with greater risk-taking, and the origin of money matters with regards to risk-taking.
Journal: Applied Economics
Pages: 443-466
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963412
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963412
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:443-466




Template-Type: ReDIF-Article 1.0
Author-Name: Abebayehu Girma Geffersa
Author-X-Name-First: Abebayehu Girma
Author-X-Name-Last: Geffersa
Author-Name: Frank Wogbe Agbola
Author-X-Name-First: Frank Wogbe
Author-X-Name-Last: Agbola
Author-Name: Amir Mahmood
Author-X-Name-First: Amir
Author-X-Name-Last: Mahmood
Title: Modelling technical efficiency and technology gap in smallholder maize sector in Ethiopia: accounting for farm heterogeneity
Abstract: 
 This paper examines the effect of farm heterogeneity on the technical efficiency and technology gap of maize production in Ethiopia. We utilize comprehensive household-level data in 2010, 2013 and 2015 for three major maize producing regions in Ethiopia. We estimate technical efficiency using a bias-corrected stochastic meta-frontier model that accounts for technological differences and the consistent ‘true’ fixed-effects stochastic frontier model, which disentangles unobservable farm heterogeneity from inefficiency. We find that maize farmers produce below their potential output with the technology available and the prevailing environmental conditions in their regions. The results show that Oromia has the highest technical efficiency, followed by SNNP, and Benishangul-Gumuz is the least efficient in maize production. These findings generate important policy implications for achieving increased technical efficiency and reduce the technology gap in maize production. Moreover, the level of education, age of household head, family size, household wealth, and off-farm employment and extension services significantly affect technical efficiency in maize production in Ethiopia.
Journal: Applied Economics
Pages: 506-521
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963415
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963415
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:506-521




Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Bernardo
Author-X-Name-First: Giovanni
Author-X-Name-Last: Bernardo
Author-Name: Massimo Ruberti
Author-X-Name-First: Massimo
Author-X-Name-Last: Ruberti
Author-Name: Roberto Verona
Author-X-Name-First: Roberto
Author-X-Name-Last: Verona
Title: Image is everything! Professional football players' visibility and wages: evidence from the Italian Serie A
Abstract: 
 Sport is one of the most popular forms of entertainment and its worldwide spread has turned athletes into icons who have economic impact and international visibility as global brands. In our paper we would like to show how marketing strategies in the sports industry, amplified by social networks, have put the athlete at the centre of media attention In the world of football, football players have come to play a key role, since their image is the face of their clubs, and this can affect the number of digital fans, that is, fans who are not bound to a club by constant passion but who can change team depending on the athletes that have been lined up. This could explain why the teams playing in the main football championships are offering higher and higher wages in the attempt to get hold of the best talents around. Based on a dataset with information about over 1,200 athletes who have taken part over five seasons of the Italian Serie A, we try to measure the impact of football players’ popularity on salary-setting mechanisms, in the attempt to understand the impact of such variables on football players’ athletic qualities and performance.
Journal: Applied Economics
Pages: 595-614
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967863
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967863
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:595-614




Template-Type: ReDIF-Article 1.0
Author-Name: Saejoon Kim
Author-X-Name-First: Saejoon
Author-X-Name-Last: Kim
Title: Time-series residual momentum strategies
Abstract: 
 We find that the conventional time-series momentum strategy can be revised in two ways to deliver enhanced excess return performance that are reminiscent of the advancements for the cross-sectional momentum strategy. First, we explore the applicability of the residual return for time-series momentum and find that it opens a door for constructing new improved time-series momentum strategies. Second, we examine the pertinence of the auto-covariance property of returns, which is the defining characteristic of time-series momentum, for asset allocation which has almost universally been identified with the equal-weighted one in the literature. We discover that consistent and persistent performance enhancements are earned by both approaches for the industry portfolios.
Journal: Applied Economics
Pages: 580-594
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967862
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967862
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:580-594




Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Martínez-Santos
Author-X-Name-First: Fernando
Author-X-Name-Last: Martínez-Santos
Author-Name: Zoraida Frias
Author-X-Name-First: Zoraida
Author-X-Name-Last: Frias
Author-Name: Álvaro Escribano
Author-X-Name-First: Álvaro
Author-X-Name-Last: Escribano
Title: What drives spectrum prices in multi-band spectrum markets? An empirical analysis of 4G and 5G auctions in Europe
Abstract: 
 Spectrum auctions have recently experienced increased sophistication in the allocation of multi-band frequencies, with efficiency issues becoming much more complex in such scenarios. This empirical analysis seeks to identify the drivers of auction prices associated with 4G and 5G technologies in seven European countries during the period 2008–2019. This study draws on a purpose-built dataset including auction design, spectrum frequency bands at auction, bandwidth supplied to mobile operators, and characteristics of the market structure. We use panel data techniques to identify the main determinants of European spectrum auction prices in the presence of substitutability and complementarities exhibited by the preferences in multi-band spectrum markets. In this regard, we find that mobile operators pay lower auction prices if there are alternative frequency bands used for previous mobile standards and that operators perceive as substitutes. Furthermore, auction prices are higher in more concentrated markets, when more licenses are auctioned and when the CCA format is used (possibly due to the existence of complementarities).
Journal: Applied Economics
Pages: 536-553
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967277
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967277
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:536-553




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Keser
Author-X-Name-First: Ahmet
Author-X-Name-Last: Keser
Author-Name: İbrahim Çütcü
Author-X-Name-First: İbrahim
Author-X-Name-Last: Çütcü
Author-Name: Mehmet Vahit Eren
Author-X-Name-First: Mehmet Vahit
Author-X-Name-Last: Eren
Title: Does country-level governance matter for national development? An analysis on the founding states of Turkic council
Abstract: 
 This study aims to examine if there is a long-term relationship between the participation of ‘country-level governance’ and ‘national development’ through the data of founding countries of the Cooperation Council of Turkish Speaking States (Turkic Council)? The hypothesis of there is a significant long-term relationship between country-level governance and national development was tested via the panel data analysis of four Turkic countries: Azerbaijan, Kirgizstan, Kazakhstan, and Turkey. The compounds of the ‘Worldwide Governance Indicators’ were used as the independent variable, and ‘Human Development Index’ as the dependent variable. A Panel Causation Test was conducted to investigate if there are long-term co-integration and causation between country-level governance and national development. Our results found that there is significant causation between the country-level governance indicators of ‘Voice and Accountability’ and ‘Government Effectiveness’ with the ‘national development’ process. Thus, our findings will contribute to both academics who study the effects of governance on development and to policymakers who utilize these sources for improved political and social development with the aim to prevent poverty and improve access to basic human needs.
Journal: Applied Economics
Pages: 522-535
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1966373
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966373
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:522-535




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Alfaro
Author-X-Name-First: Martin
Author-X-Name-Last: Alfaro
Title: Beer leaders against craft brewers: will Goliath end up defeating David in the US?
Abstract: 
 The last decade has witnessed an unprecedented rise of craft brewers in the American beer industry, with market leaders actively seeking to hamper their growth. In this paper, we set a model with craft brewers and macrobrewers, where leading firms engage in strategic moves to shape market outcomes. The framework results in leaders strategically targeting craft brewers to disadvantage them, and hence crowd them out. On the contrary, non-leading macrobrewers are neither targeted nor hurt. A calibration for the American beer industry in 2019 shows that, even though the emergence of craft brewers in the last years has hurt leaders, strategic moves have allowed them to mitigate its consequences. Specifically, these moves have respectively enabled AB InBev and Molson Coors to prevent further losses of market share of 5.1 and 2.8 points, implying that the craft brewers’ market share would have been even 7.9 points higher in absence of strategic moves.
Journal: Applied Economics
Pages: 554-567
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967278
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967278
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:554-567




Template-Type: ReDIF-Article 1.0
Author-Name: Gaurav Gupta
Author-X-Name-First: Gaurav
Author-X-Name-Last: Gupta
Title: CEO’s educational background, economic policy uncertainty and investment-cash flow sensitivity: evidence from India
Abstract: 
 This study investigates the impact of Economic Policy Uncertainty (EPU) on Investment-Cash Flow Sensitivity (ICFS). Further, this study investigates whether CEO’s educational backgrounds moderate the effect of EPU on ICFS for Indian manufacturing firms from 2005 to 2019. Using the system-GMM, this study finds that EPU increases the role of cash flow for corporate investment and reduces corporate investment. Additionally, CEOs with an educational background in the finance domain (technical area) do (not) moderate the negative impact of EPU on ICFS. The finding of this study suggests that EPU considerably affects ICFS, and CEO’s educational backgrounds moderate the effect of EPU on ICFS. Overall, this study adds new insights into the research fields and the implications of this study are beneficial for economies, firms, managers, and investors.
Journal: Applied Economics
Pages: 568-579
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967279
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967279
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:568-579




Template-Type: ReDIF-Article 1.0
Author-Name: Sudarshan Kumar
Author-X-Name-First: Sudarshan
Author-X-Name-Last: Kumar
Author-Name: Vineet Virmani
Author-X-Name-First: Vineet
Author-X-Name-Last: Virmani
Title: Term structure estimation with liquidity-adjusted Affine Nelson Siegel model: A nonlinear state space approach applied to the Indian bond market
Abstract: 
 Efficient term structure estimation in emerging markets is difficult not only because of overall lack of liquidity, but also because of the concentration of liquidity in a few securities. Using the arbitrage-free Affine Nelson-Siegel model, we explicitly incorporate this phenomenon using a proxy for liquidity based on observable data in the bond pricing function and estimate the term structure for Indian Government bond markets in a nonlinear state space setting using the Unscented Kalman Filter. We find strong empirical evidence in support of the extended model with both i) a better in-sample fit to bond prices, and ii) the likelihood ratio test rejecting the restrictions assumed in the standard AFNS specification. In an alternative specification, we also model liquidity as a latent risk factor within the AFNS framework. The estimated latent liquidity factor is found to be strongly correlated with the standard market benchmarks of overall liquidity and the India VIX index.
Journal: Applied Economics
Pages: 648-669
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967866
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967866
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:648-669




Template-Type: ReDIF-Article 1.0
Author-Name: Hirokazu Mizobata
Author-X-Name-First: Hirokazu
Author-X-Name-Last: Mizobata
Title: Financial heterogeneity and the dynamics of credit rationing in Japan
Abstract: 
 A perceptual gap between banks and firms exists in Japan, preventing the credit channel of monetary policy. Banks believe that bankable customers are scarce, while firms believe that banks do not issue loans without collateral or guarantees. To explain this gap, I focus on the dispersion in the degree of financial constraints across listed Japanese firms from FY1991 to FY2019. I construct a firm-specific and time-varying measure of financial constraints through the structural estimation, and investigate its distribution over time. The results reveal a right-skewed distribution for the index of financial constraints, indicating that many firms face minor financial constraints, while a few face severe financial constraints. The spread between the 75th and 25th percentiles of the index of financial constraints increased after the bubble burst, indicating that Japan’s financial heterogeneity has recently become outstanding. Finally, decomposing financial heterogeneity into within – and between-industry effects shows that the observed financial inequality is due to the increase in inequality among firms within narrowly defined industries.
Journal: Applied Economics
Pages: 685-701
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967869
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967869
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:685-701




Template-Type: ReDIF-Article 1.0
Author-Name: Serpil Kahraman
Author-X-Name-First: Serpil
Author-X-Name-Last: Kahraman
Author-Name: Merve Keser
Author-X-Name-First: Merve
Author-X-Name-Last: Keser
Title: Volatility Transmission Between the Japanese Stock Market and the Western Stock Market Indices: Time & Frequency Domain Connectedness Analysis with High-Frequency Data
Abstract: 
 Stock markets are the main source of financial fragility and the spillover effect due to the high level of connectedness. This study focuses on the connectedness between the Japanese stock market and the major Western stock market indices by performing time and frequency-domain connectedness analysis for the period between 4 January 2002, and 29 September 2020. The time-domain analysis shows that there is a high connectedness among stock market indices, and the net transmitter indices are SPX and AEX while net receiver indices are AORD and N225. The frequency-based analysis highlights that the connectedness between markets in the long term contains more information in contrast to short and medium terms. Similar to time-domain results, SPX is the net transmitter and N225 is the net receiver market indices in long term. Moreover, the dynamic analysis results illustrate the turbulent times of the volatility spillover in the long term with high and short-medium run with low spillover index. Dynamically, time-domain and long-term frequency-domain frameworks’ findings give similar time variation illustrations.
Journal: Applied Economics
Pages: 670-684
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967868
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967868
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:670-684




Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: James W. Kolari
Author-X-Name-First: James W.
Author-X-Name-Last: Kolari
Title: Choosing factors: the international evidence
Abstract: 
 Extending Fama and French’s U.S. study on choosing factors to international equity markets, we test nested and non-nested asset pricing models for North America, Europe, Asia excluding Japan, and Japan. For non-nested models, we propose a new simulation methodology using a blocks bootstrap approach that takes into account factor dependencies. The resultant out-of-sample Sharpe ratios across all models and countries are lower than Fama and French’s pairs bootstrap approach. While we confirm that the six-factor model with market, size, and small size spread factors for value, profitability, investment, and momentum produces the highest maximum squared Sharpe ratio in most economies, an exception is Asia excluding Japan. Additionally, spanning regressions reveal that size does not matter in any of the international equity markets, whereas value matters in Europe, Asia excluding Japan, and Japan.
Journal: Applied Economics
Pages: 633-647
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967865
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967865
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:633-647




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Author-Name: Xianming Fang
Author-X-Name-First: Xianming
Author-X-Name-Last: Fang
Title: Responses of China’s shadow banking system to exogenous shocks
Abstract: 
 The rapid expansion of China’s shadow banking system in recent years has led to continuous accumulation of risks and posed threats to the security of China’s real economy. According to the specific mechanism of China’s economic operation, this paper constructs a dynamic stochastic general equilibrium model to analyse the responses of China’s shadow banking system to the exogenous shocks of benchmark interest rate adjustment, high-risk enterprise return rate fluctuation and shadow bank return rate fluctuation. Results indicate that (1) the shadow bank loan interest rate reacts intensively to the benchmark interest rate adjustment; (2) the shadow bank loan interest rate has immediate and short-term response to the fluctuation of high-risk enterprise return rate; (3) the fluctuation of shadow bank return rate indirectly affects the shadow bank loan interest rate. An empirical study using the time-varying VAR model provides further empirical evidence. The shadow banking risks caused by the impacts on the shadow bank loan interest would increase the fragility of China’s financial system and endanger the security of China’s real economy.
Journal: Applied Economics
Pages: 615-632
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967864
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967864
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:615-632




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolong Feng
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Feng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Mingyue Liu
Author-X-Name-First: Mingyue
Author-X-Name-Last: Liu
Author-Name: Huanguang Qiu
Author-X-Name-First: Huanguang
Author-X-Name-Last: Qiu
Title: Impact of grassland transfer on technical efficiency of livestock production in Northern China
Abstract: 
 This paper estimates the impact of grassland transfer on the technical efficiency of livestock production, using the cross-sectional data collected from herders in Northern China. The propensity score matching approach and selectivity-corrected stochastic production frontier model are employed to address the selection bias issues. The empirical results show that, on average, the average technical efficiency score of herders with grassland transfer is significantly higher than that of herders without grassland transfer, which are 0.56 and 0.41, respectively, after addressing both observed and unobserved selection biases. The livestock revenue is positively and significantly affected by forage grass use, machinery use, stocking rate, family and hired labours use, and veterinary investment. Our findings highlight the importance of facilitating grassland transfer to increase livestock production efficiency and boost farm performance.
Journal: Applied Economics
Pages: 702-718
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967870
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967870
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:702-718




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed BenSaïda
Author-X-Name-First: Ahmed
Author-X-Name-Last: BenSaïda
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Houda Litimi
Author-X-Name-First: Houda
Author-X-Name-Last: Litimi
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: The influence of oil, gold and stock market index on US equity sectors
Abstract: 
 Within a Markov regime switching perspective, we examine the spillovers between the returns of the ten most representative US equity sectors and the returns of gold, oil, and S&P 500 (GOI), on the one hand, and their implied volatilities, GVZ, OVX, and VIX, on the other hand. Our objective is to check if the implied volatilities of GOI influence the US equity sectors more than GOI returns. Single regime results show that GOI volatilities affect the equity sector returns more than GOI returns, suggesting that forward-looking volatility expectations play a more significant role in determining sector returns than current and historical GOI returns. During tranquillity periods, all three implied volatilities influence equity sector returns more than GOI returns. Moreover, VIX has the strongest effect on sectoral returns. During turmoil periods, VIX influences the sectoral returns more than S&P 500 returns. However, the returns of gold and oil influence equity sector returns more than their implied volatilities. The result may be useful to portfolio and equity risk managers for improved forecasting and hedging in the US equity markets.
Journal: Applied Economics
Pages: 719-732
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1969001
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1969001
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:719-732




Template-Type: ReDIF-Article 1.0
Author-Name: Hongzhou Pei
Author-X-Name-First: Hongzhou
Author-X-Name-Last: Pei
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Puneet Vatsa
Author-X-Name-First: Puneet
Author-X-Name-Last: Vatsa
Author-Name: Zhiyong Niu
Author-X-Name-First: Zhiyong
Author-X-Name-Last: Niu
Author-Name: Ruochen Jiang
Author-X-Name-First: Ruochen
Author-X-Name-Last: Jiang
Title: Economic Downturns and Leisure in China
Abstract: 
 This study examines the impact of economic downturns on leisure life, using the Chinese General Social Survey data from 2010 to 2015. The results show that economic downturns significantly decrease individuals’ time allocated to leisure activities. Specifically, participation in educational activities increases during economic downturns, while participation in social interaction and entertainment does not change. We also find that economic downturns significantly reduce the average frequency of individuals’ participation in active entertainment activities (e.g. reading, participating in cultural activities, listening to music at home, participating in physical exercise, watching live sports games, and doing handwork), but do not significantly affect the average frequency of individuals’ participation in passive entertainment activities (e.g. watching TV or DVD at home, watching movies in a cinema, shopping, gathering with relatives, gathering with friends, and surfing the Internet).
Journal: Applied Economics
Pages: 807-820
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1966371
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966371
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:807-820




Template-Type: ReDIF-Article 1.0
Author-Name: Ji Seon Yoo
Author-X-Name-First: Ji Seon
Author-X-Name-Last: Yoo
Author-Name: Tae Sup Shim
Author-X-Name-First: Tae Sup
Author-X-Name-Last: Shim
Title: Effects of changes in financial statement aggregation under IFRS on the behaviour of non-professional and professional information users
Abstract: 
 This study investigates the effects of the degree of financial statement aggregation and footnote disclosures under IFRS on the judgements of information users with different knowledge levels. A quasi-experiment is conducted with Korean MBA students and CPAs as surrogates for non-professional and professional users, respectively. The results suggest that changes in the level of aggregation of financial statements influence the judgements of non-professional but not professional information users. Neither the judgements of non-professional users nor those of professional users are affected by footnote disclosures. The findings of this study highlight the need for companies to improve the presentation format of their financial statements to better convey relevant information to users.
Journal: Applied Economics
Pages: 733-748
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2020.1855319
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855319
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:733-748




Template-Type: ReDIF-Article 1.0
Author-Name: Nasri Harb
Author-X-Name-First: Nasri
Author-X-Name-Last: Harb
Title: Earnings function in Lebanon: does religion matter?
Abstract: 
 This paper aims to study the wage gap among religions in Lebanon using a random sample. The advantage of using Lebanon as a case is due to its historical diversification. This case excludes any impact of culture, language and immigration. The article uses multiple regression analysis, the Oaxaca-Blinder decomposition, and the quantile distribution regressions to study the wage gap. The signs of our estimated coefficients are as expected. The results show a significant wage gap for Sunnis, and Shias compared to Maronites. Furthermore, we find that the place of work has a significant impact on earnings. The religion wage gap vanishes if a Shia worker is working in Beirut or in the Eastern suburb; or if a Sunni is working in the Eastern Suburb. Finally, the paper shows that the gap is larger in the case of males for Sunnis, but not for Shias.
Journal: Applied Economics
Pages: 821-840
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1966372
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966372
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:821-840




Template-Type: ReDIF-Article 1.0
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Linshan Qu
Author-X-Name-First: Linshan
Author-X-Name-Last: Qu
Author-Name: Ran Wei
Author-X-Name-First: Ran
Author-X-Name-Last: Wei
Author-Name: Xuankai Zhao
Author-X-Name-First: Xuankai
Author-X-Name-Last: Zhao
Title: Media-based investor sentiment and stock returns: a textual analysis based on newspapers
Abstract: 
 This study constructs a media-based investor sentiment index based on a textual analysis of China’s leading financial newspapers. We employ both the Word2Vec technique and the dictionary method to measure the aggregate textual tone in the media news. Based on a sample of publicly listed A-share firms in China, we document that media-based sentiment is positively (negatively) related to the cross-section of stock returns over a short (long) horizon. Further analysis shows that higher information quality, measured by more analyst coverage, better audit opinions and non-governmental ownership could mitigate the effects of sentiment. Overall, our findings imply that media news contains important information for measuring the overall investor sentiment that drives the future stock price up in the short term and then down in the long term.
Journal: Applied Economics
Pages: 774-792
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1966369
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966369
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:774-792




Template-Type: ReDIF-Article 1.0
Author-Name: Akem Nina Fabinin
Author-X-Name-First: Akem Nina
Author-X-Name-Last: Fabinin
Title: Pulse, export and staple convenience food: market analysis in West Africa
Abstract: 
 The recent expansion of trade measures across countries in sub-Saharan Africa provides market opportunities for the agri-food sector. However, price signals and changes across domestic and regional continental markets are a factor in boosting the success and performance of these markets. Examining commodity market adjustments to price shocks is essential for insights to boost trade performance. Using prominent food categories of the agricultural sector in this region, the study examines market dynamics between pulses, exports, and other staple convenience food. Spatial analysis evaluates market inter-dependencies between regional and domestic markets using a vector error correction model. The findings suggest heterogeneous market effects across commodities horizontally and vertically for value-added product forms in the food chain. In domestic intra-regional markets, price transmission is about as high for regional continental markets, while the extent for inter-regional domestic markets varies by the commodity niche on the value chain. Tailored market development policies can better the overall functioning of agri-food markets and boost the convergence of markets as well as trade integration and expansion.
Journal: Applied Economics
Pages: 764-773
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1965534
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1965534
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:764-773




Template-Type: ReDIF-Article 1.0
Author-Name: Guangli Zhang
Author-X-Name-First: Guangli
Author-X-Name-Last: Zhang
Author-Name: Xianhang Qian
Author-X-Name-First: Xianhang
Author-X-Name-Last: Qian
Title: The impact of officials’ turnover on interregional capital flows: evidence from China
Abstract: 
 Using data on the turnover of provincial Party secretary and interregional capital flows in China, this paper investigates the impact of officials’ turnover on capital flows. We find that there are fewer capitals inflowing into the province during the year with officials’ turnover, and it persists after considering selection bias and multiple robustness checks. When the outgoing officials have longer tenures or are not promoted and the new officials are non-native-born, the effect is larger. The impact of officials’ turnover is more pronounced in provinces with lower investor protection, lower corruption level or more non-state economy. Finally, officials’ turnover can decrease capital formation through reducing capital flows.
Journal: Applied Economics
Pages: 749-763
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1965533
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1965533
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:749-763




Template-Type: ReDIF-Article 1.0
Author-Name: Fakhri J. Hasanov
Author-X-Name-First: Fakhri J.
Author-X-Name-Last: Hasanov
Author-Name: Nader Alkathiri
Author-X-Name-First: Nader
Author-X-Name-Last: Alkathiri
Author-Name: Saad A. Alshahrani
Author-X-Name-First: Saad A.
Author-X-Name-Last: Alshahrani
Author-Name: Ryan Alyamani
Author-X-Name-First: Ryan
Author-X-Name-Last: Alyamani
Title: The impact of fiscal policy on non-oil GDP in Saudi Arabia
Abstract: 
 This paper examined the impact of fiscal policy on non-oil GDP in Saudi Arabia, the world’s largest oil exporter, over the annual period 1989–2018. We employed various cointegration methods within the framework of the augmented production function and estimated that government current and capital expenditure, in addition to non-oil labour and capital, have statistically significant positive effects on non-oil GDP. We tested whether the recent oil price decline and the implemented economic reforms caused a break in the relationship that non-oil GDP establishes with the mentioned variables and found that there was no break in either the long-run or the short-run relationship. The study concluded with some policy insights that could be useful for fiscal authorities to promote non-oil economic development.
Journal: Applied Economics
Pages: 793-806
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1966370
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:793-806




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Applied Economics
Pages: 1-2
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2020.1861537
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861537
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:1-2




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Boulanger
Author-X-Name-First: Pierre
Author-X-Name-Last: Boulanger
Author-Name: Hasan Dudu
Author-X-Name-First: Hasan
Author-X-Name-Last: Dudu
Author-Name: Emanuele Ferrari
Author-X-Name-First: Emanuele
Author-X-Name-Last: Ferrari
Author-Name: Alfredo J. Mainar-Causapé
Author-X-Name-First: Alfredo J.
Author-X-Name-Last: Mainar-Causapé
Author-Name: Maria Priscila Ramos
Author-X-Name-First: Maria Priscila
Author-X-Name-Last: Ramos
Title: Effectiveness of fertilizer policy reforms to enhance food security in Kenya: a macro–micro simulation analysis
Abstract: 
 Food security represents a key challenge in most Sub-Saharan African countries and in Kenya in particular where still a relevant share of the population lives below a minimum dietary energy consumption. Kenya addresses this concern with a noteworthy policy mix, aiming at giving to the agricultural sector a leading task in improving food security. This paper evaluates the impacts on food security of expanding fertilizer capacities in Kenya, combined with a set of additional policy changes targeting fertilizer use. In a top-down analysis, a specific Computable General Equilibrium (CGE) model is linked with a microsimulation approach. Scenarios present overall positive effects on key food security aggregates. The same is true for welfare. Nevertheless, the heterogeneity of households across and within regions suggests that improving input productivity through better market access and service extension are critical to reducing possible discrepancies across farmers, households and regions. The paper concludes on the need for a sound policy mix since increasing fertilizer production alone is not enough to enhance food security evenly. Among accompanying measures, intensifying extension services are essential especially for smallholders in their acquisition of better knowledge on the use of agricultural inputs.
Journal: Applied Economics
Pages: 841-861
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2020.1808180
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808180
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:841-861




Template-Type: ReDIF-Article 1.0
Author-Name: Kadija Charni
Author-X-Name-First: Kadija
Author-X-Name-Last: Charni
Title: Do employment opportunities decrease for older workers?
Abstract: 
 Increasing the labour market participation rates of older workers is a means to secure the sustainability of public finances. However, questions about the effects of job loss of unemployed older workers and their employment prospects remain. This paper investigates why workers, aged 50 and over, have less employment opportunities. Using a competing risks model on British panel data, we examine the chances of re-employment after unemployment spells for older individuals. We find that human capital characteristics and economic incentives play an important role in their chances of getting back to work. We show that the probability of returning to employment after an unemployment spell decreases as workers get older. A decomposition analysis supports the role of age in the unemployment duration gap between ‘older’ and ‘younger’ individuals. The duration of leaving unemployment to employment of older workers would be lower if they will be treated in the same way as the younger ones, which is consistent with elderly employment barriers.
Journal: Applied Economics
Pages: 937-958
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1970711
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1970711
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:937-958




Template-Type: ReDIF-Article 1.0
Author-Name: Adél Bosch
Author-X-Name-First: Adél
Author-X-Name-Last: Bosch
Author-Name: Matthew Clance
Author-X-Name-First: Matthew
Author-X-Name-Last: Clance
Author-Name: Steven F. Koch
Author-X-Name-First: Steven F.
Author-X-Name-Last: Koch
Title: Household debt and consumption dynamics A non-developed world view following the financial crisis
Abstract: 
 According to recent macroeconomic evidence, the global financial crisis is still impacting the South African financial landscape more than 10 years later. In an effort to better understand the effect of the financial crisis, we examine household debt dynamics, with particular attention to deleveraging, following the financial cycle peak. Our analysis is predicated on the National Income Dynamics Study, the first wave of which was conducted adjacent to the beginning of the crisis. We apply standard regression analysis finding heterogeneity in debt and deleveraging at the household level, with both an uptick in short-term debt in the early stages of the crisis and a reduction in long-term debt, primarily mortgage debt, since. Overall, deleveraging was greatest amongst higher income households with relatively larger mortgage debt-to-income ratios, although that was partially offset in households with higher mortgage repayment costs relative to income. Long-term deleveraging was also more likely amongst households with higher vehicle debt-to-income ratios, but lower consumer debt-to-income ratios.
Journal: Applied Economics
Pages: 897-917
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1969004
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1969004
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:897-917




Template-Type: ReDIF-Article 1.0
Author-Name: Yunshen Long
Author-X-Name-First: Yunshen
Author-X-Name-Last: Long
Author-Name: LinQing Zeng
Author-X-Name-First: LinQing
Author-X-Name-Last: Zeng
Author-Name: Jing Wang
Author-X-Name-First: Jing
Author-X-Name-Last: Wang
Author-Name: Xingchen Long
Author-X-Name-First: Xingchen
Author-X-Name-Last: Long
Author-Name: Liang Wu
Author-X-Name-First: Liang
Author-X-Name-Last: Wu
Title: A gradient boosting approach to estimating tail risk interconnectedness
Abstract: 
 Interconnectedness, an important risk indicator, should be gauged when assessing the tail risk of financial institutes. Considering potential nonlinearity and interaction in the networked tail risk contagion, we propose an interpretably non-parametric measure based on Gradient Boosting Machine (GBM) to estimate interconnectedness across financial institutes. The proposed measure can be utilized to monitor tail risk spillover channels. We apply our proposed measure to investigate the tail risk interconnectedness of the listed banks in China. We find that the tail risks tend to be spilled over within the same type of banks. The empirical result also implies that the bank heavily involved with the interbank business, such as Industrial Bank, is worthy of regulators’ attention. Further analysis shows that the total connectedness of the banking system increases when the financial system is under distress. Finally, we document that state-owned banks are the main tail risk emitters during financial turbulence. Our study not only presents a flexibly data-driven way to quantify tail risk contagion but also provides useful information to policymakers for prudential supervision.
Journal: Applied Economics
Pages: 862-879
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1969002
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1969002
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:862-879




Template-Type: ReDIF-Article 1.0
Author-Name: Viera Mendelová
Author-X-Name-First: Viera
Author-X-Name-Last: Mendelová
Title: Technical efficiency decomposition in DEA: a review and improvement with an application in Slovak urban transport
Abstract: 
 The article deals with the issue of a technical efficiency (TE) decomposition of decision-making units (DMUs) using data envelopment analysis (DEA). The article summarizes two established DEA decomposition approaches and shows that although these approaches are straightforward and relatively easy to apply in empirical analyses, they are associated with certain shortcomings. As discussed in the article, these shortcomings are mainly related to the way in which the mix efficiency is measured and to the fact that they focus only on one side of efficiency (input or output). The article attempts to overcome these limitations and proposes an alternative simple decomposition method in which problems with measuring mix efficiency are eliminated and both efficiency of inputs, as well as efficiency of outputs are incorporated. The proposed method so provides a comprehensive view on the activities of the evaluated DMUs and points to specific sources of technical inefficiency in the overall input-output view. The case of urban transport companies (UTCs) in the Slovak Republic is revisited using this newly developed approach.
Journal: Applied Economics
Pages: 880-896
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1969003
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1969003
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:880-896




Template-Type: ReDIF-Article 1.0
Author-Name: Yongsuk Yun
Author-X-Name-First: Yongsuk
Author-X-Name-Last: Yun
Author-Name: Hyun Ah Kim
Author-X-Name-First: Hyun Ah
Author-X-Name-Last: Kim
Title: High investor sentiment and initial engagement discounts: evidence from Korea
Abstract: 
 This study examines whether high sentiment affects auditors’ risk assessment in a less litigious environment. Specifically, we use a Korean setting with relatively low litigation risks and investigate whether audit fees are lower when firms change auditors during high sentiment times. Lower audit fees responding to high sentiment in a weak legal environment may indicate that auditors perceive the overall audit risk including reputation risk and regulation risk as low within the given period, increasing the possibility of their failure to detect managerial opportunistic behaviour. Using 17,469 Korean public firm-year observations from 2003 to 2017, we find that initial audit fees are significantly lower when investor sentiment is high, while changing auditors has no influence on audit fees when investor sentiment is low. Furthermore, this result is maintained even when auditors are changed to Big4 or industry specialist auditors (SPEC), which are known to have high ability and risk sensitivity. We also find that Big4 and SPEC initial auditors input significantly less audit hours during high investor sentiment periods, suggesting that optimistic bias caused by high sentiment makes auditors expect that relaxed audits are tolerable regardless of the legal environment.
Journal: Applied Economics
Pages: 959-973
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1971619
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1971619
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:959-973




Template-Type: ReDIF-Article 1.0
Author-Name: Oudah Yobom
Author-X-Name-First: Oudah
Author-X-Name-Last: Yobom
Author-Name: Julie Le Gallo
Author-X-Name-First: Julie
Author-X-Name-Last: Le Gallo
Title: Climate and agriculture: empirical evidence for countries and agroecological zones of the Sahel
Abstract: 
 How heterogenous is the impact of climate change across space and the type of agricultural production? In this paper, we investigate the relationship between climate change and variability, measured by temperature and rainfall, and agricultural production at the country and agroecological zone levels of the Sahel. We consider a crop production index and five cereals (maize, millet, sorghum, wheat and rice). Based on an original climate database and an agricultural production function estimated for the period 1961–2016, we show that average rainfall and temperature during the growing season indeed have highly heterogeneous effects on agricultural production, depending on the specific needs and stress of each cereal and the agronomic and climatic conditions of each zone.
Journal: Applied Economics
Pages: 918-936
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1970710
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1970710
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:918-936




Template-Type: ReDIF-Article 1.0
Author-Name: Fei Peng
Author-X-Name-First: Fei
Author-X-Name-Last: Peng
Author-Name: Ling Wang
Author-X-Name-First: Ling
Author-X-Name-Last: Wang
Author-Name: Xing Shi
Author-X-Name-First: Xing
Author-X-Name-Last: Shi
Author-Name: Huaqing Wu
Author-X-Name-First: Huaqing
Author-X-Name-Last: Wu
Title: Does value-added tax reform in services accelerate enterprise upgrading? Micro evidence from China
Abstract: 
 This study investigates the impact of the value-added tax reform in services on enterprise upgrading during China’s transition. We found that the reform significantly accelerates the process of enterprise upgrading by using data on China’s listed companies from 2009 to 2017 and a difference-in-differences approach. Heterogeneous analyses show that the impact of the reform is mainly manifested in non-state-owned enterprises. We also find that quality upgrading (value-added) plays a dominant role, while the potential of total factor productivity is not fully exploited yet. Tax reduction, investment in innovation, specialization, and factor allocation are major pathways to achieving enterprise upgrading. These findings provide implications for transitional economies in promoting enterprise upgrading through tax incentives.
Journal: Applied Economics
Pages: 1093-1109
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1975029
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975029
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1093-1109




Template-Type: ReDIF-Article 1.0
Author-Name: Chao Liang
Author-X-Name-First: Chao
Author-X-Name-Last: Liang
Author-Name: Yi Zhang
Author-X-Name-First: Yi
Author-X-Name-Last: Zhang
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Title: Forecasting the volatility of the German stock market: New evidence
Abstract: 
 This study mainly explores whether the implied volatility indices of international stock markets and crude oil contain useful information in predicting the realized volatility (RV) of the German stock market. We use the standard predictive regression model, principal component analysis, five combination methods, and two shrinkage models to generate forecasts of DAX index volatility. First, the in-sample results indicate that almost all of the implied volatility indices considered have significant predictive power for the RV of the German DAX index. Second, the out-of-sample predictions suggest that the two shrinkage models exhibit the best out-of-sample predictions. Furthermore, a mean-variance investor can allocate portfolios through volatility predictions based on shrinkage models to achieve considerable economic gains. Finally, our conclusions are supported by numerous robustness checks.
Journal: Applied Economics
Pages: 1055-1070
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1975027
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975027
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1055-1070




Template-Type: ReDIF-Article 1.0
Author-Name: Firmin Doko Tchatoka
Author-X-Name-First: Firmin
Author-X-Name-Last: Doko Tchatoka
Author-Name: Julia Puellbeck
Author-X-Name-First: Julia
Author-X-Name-Last: Puellbeck
Author-Name: Virginie Masson
Author-X-Name-First: Virginie
Author-X-Name-Last: Masson
Title: Stock returns in the time of COVID-19 pandemic
Abstract: 
 This paper investigates the dependence between COVID-19 shocks and stock market returns for seven countries: Canada, China, France, Germany, South Korea, the UK and the US. Using a quantile-on-quantile (QQ) regression analysis, we find that all stock markets responded to COVID-19 shocks mostly negatively. However, we also observe instances where an increase in the number of COVID-19 confirmed cases resulted in higher stock returns. This unexpected positive dependence captures the much debated stock market-real economy disconnect at the time of the onset of the COVID-19 pandemic. Furthermore, although stock markets’ responses to both the global and the country-specific COVID-19 shocks are similar across countries, substantial differences also exist. In particular, stock markets in the US and China differed in their responses to the global COVID-19 shocks, with a higher degree of heterogeneity observed for the Chinese market. Finally, Asian markets reacted differently to country-specific COVID-19 shocks when compared to the US market. This finding could be explained by the fact that investors in the US stock markets may form their expectations mostly from the US COVID-19 shock, while investors in Asian countries, including China, may value more the information transmitted through the global COVID-19 shock.
Journal: Applied Economics
Pages: 1071-1092
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1975028
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975028
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1071-1092




Template-Type: ReDIF-Article 1.0
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Francisco Jareño
Author-X-Name-First: Francisco
Author-X-Name-Last: Jareño
Author-Name: Ana Escribano
Author-X-Name-First: Ana
Author-X-Name-Last: Escribano
Title: Dynamic return and volatility connectedness for dominant agricultural commodity markets during the COVID-19 pandemic era
Abstract: 
 This paper explores the dynamic return and volatility connectedness for the three most relevant agricultural and livestock commodity indexes (Softs, Grains and Livestock) and a media sentiment index as the Coronavirus Media Coverage Index (MCI). To that purpose, we apply the fresh time-varying parameter vector autoregression methodology during the sample period between 1 January 2020 and 30 April 2021, that is, covering the three waves of the COVID-19 pandemic crisis. Interesting results are found in this research. First, dynamic total return and volatility connectedness fluctuate over time, reaching a peak during both the first and the third waves of the global pandemic crisis. Second, in the dynamic connectedness TO the system, we observe significant differences between markets at the level of the return connectedness measure. However, in the dynamic volatility connectedness TO, there are very few differences between some elements of the system. The Coronavirus MCI appears as the less relevant receiver FROM the system, not only in terms of dynamic return connectedness but also in volatility. Finally, regarding the net dynamic total connectedness, the Coronavirus MCI shows the highest values in return and volatility, during most of the sample period analysed.
Journal: Applied Economics
Pages: 1030-1054
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1973949
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1973949
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1030-1054




Template-Type: ReDIF-Article 1.0
Author-Name: Luke Ignaczak
Author-X-Name-First: Luke
Author-X-Name-Last: Ignaczak
Author-Name: Louis Raffestin
Author-X-Name-First: Louis
Author-X-Name-Last: Raffestin
Author-Name: Marcel Voia
Author-X-Name-First: Marcel
Author-X-Name-Last: Voia
Title: Do the determinants of employment duration vary across employment spells?
Abstract: 
 This paper looks at employment spells beyond the first, to check if multiple employment separations improve the matching of skills between workers and firms. We investigate whether the factors that are relevant for the first spell remain relevant for later spells. The results point to a range of outcomes. Certain variables such as the unemployment rate gap or part-time employment remain strong consistent predictors of the separation hazard across spells. In contrast, the coefficients of some variables such as the education or family status of the worker change sign and significance as the number of spells increases. This pattern is explained using a theoretical model that connects the cross-spell impact of a variable to its impact on the underlying distribution of the tendency to separate across workers. Variables associated with either a very low or a very high tendency to separate have an inconsistent effect across spells, because workers with a low tendency to separate do not appear in subsequent spells. Additionally, we find that the results vary across genders and generations.Classification codes: J00, C14, C12, C41.
Journal: Applied Economics
Pages: 1011-1029
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1972084
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1972084
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1011-1029




Template-Type: ReDIF-Article 1.0
Author-Name: Yang Liu
Author-X-Name-First: Yang
Author-X-Name-Last: Liu
Author-Name: Keisuke Kawata
Author-X-Name-First: Keisuke
Author-X-Name-Last: Kawata
Title: Labour market and wage inequalities between permanent rural migrants and urban-born residents in China
Abstract: 
 This study provides some of the first empirical evidence on the role of the labour market in determining individual-level wages and the consequent wage inequalities. Unlike traditional earnings equations that focus on human capital factors, this study follows recent wage theory, the Nash bargaining model, and finds that not only human capital but also the labour market are important factors in determining individual-level wages. Further, this study examines wage inequalities between urban-born workers and permanent rural migrant workers, who constitute a sizable part of all rural migrants in urban China but have been ignored in previous academic studies. Different from temporary rural migrants examined in previous studies, permanent rural migrants share the same citizenship rights and social welfare as urban-born workers. However, we still find that these permanent migrants (classified as talent, land, and ‘supported’ migrants) face disadvantages in acquiring high wages. Using a developed version of the two-fold Blinder–Oaxaca decomposition based on our theoretical model, we find that the wage inequalities between permanent rural migrants and urban residents are caused by both the workers’ education and labour market tightness, as well as the father’s employment status, housing prices, and other factors.
Journal: Applied Economics
Pages: 996-1010
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1925079
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925079
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:996-1010




Template-Type: ReDIF-Article 1.0
Author-Name: Fan Chen
Author-X-Name-First: Fan
Author-X-Name-Last: Chen
Title: Merton model’s prediction and empirical evidence on bond and equity prices reaction to new bond issues
Abstract: 
 I use the Merton model as a theoretical framework to assess 1) the expected impact of a new bond offering on existing bond and stock prices, and 2) how the bond and stock price reactions are conditioned on characteristics of the new and existing bonds and the planned use of the new funds. Consistent with the Merton model prediction, I find negative and significant average abnormal returns of issuers’ existing bonds over a three-day event window surrounding the announcement of new bond issues. In contrast, average abnormal stock returns of the issuing firms are positive but insignificant. Bond market announcement returns estimated using daily corporate bond data from TRACE are more negative for longer-term outstanding bonds and less negative when the new bonds are junior to existing bonds. I also find that the bond price reaction (stock price reaction) is more negative (less positive) when funds are to be used for expansion than when they are to be used to repurchase stock.
Journal: Applied Economics
Pages: 974-995
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2020.1861205
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861205
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:974-995




Template-Type: ReDIF-Article 1.0
Author-Name: Md. Abdur Rahman Forhad
Author-X-Name-First: Md. Abdur Rahman
Author-X-Name-Last: Forhad
Author-Name: Md Rafayet Alam
Author-X-Name-First: Md Rafayet
Author-X-Name-Last: Alam
Title: Impact of oil demand and supply shocks on food-grain prices: a Markov-switching approach
Abstract: 
 This study examines the impact of structural oil demand and supply shocks on the prices of four food-grains: corn, rice, soybean and wheat. We first derive two oil demand shocks-one is due to the change in the global economic condition and the other is oil-market-specific-and an oil supply shock that reflects the change in global oil production. The structural shocks are then used in the linear, and nonlinear Markov-switching models to examine their effects on the four food-grain prices. The results show that an unanticipated oil supply shock does not affect price of any of the four food-grains significantly. An increase in the demand for oil, which is not induced by the change in global economic condition, increases only the corn price in the less volatile corn market. An improvement of global economic condition impacts wheat and corn prices in high volatility regimes. However, oil shocks that are older than one month usually do not affect the food-grain prices.
Journal: Applied Economics
Pages: 1199-1211
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.2009113
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009113
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1199-1211




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher S. Brunt
Author-X-Name-First: Christopher S.
Author-X-Name-Last: Brunt
Title: Did the Medicaid expansion reduce service utilization among the Medicare population?
Abstract: 
 While a large and growing literature has examined the effects of the Affordable Care Act’s Medicaid expansion on newly eligible Medicaid recipients, relatively few studies have explored whether increased Medicaid service utilization has had any negative spillover effects on the Medicare population. This study uses county-level data on Medicare fee-for-service (FFS) utilization from 2007 to 2018 in conjunction with inverse probability of treatment adjusted difference-in-differences and event study models with a variety of inter-temporal controls and county-level fixed effects. It finds highly significant effects of modest magnitude providing evidence of negative spillovers on the traditional Medicare Fee-for-service (FFS) population. FFS Medicare Beneficiaries in Medicaid expansion states experienced a 1% reduction in Evaluation and Management (E&M) visits, a 2.1% reduction in testing services, collectively reducing their volume of visits across Berenson-Eggers Type of Service (BETOS) categories by 0.7%.
Journal: Applied Economics
Pages: 1172-1198
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.2002803
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2002803
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1172-1198




Template-Type: ReDIF-Article 1.0
Author-Name: Mayumi Fukumoto
Author-X-Name-First: Mayumi
Author-X-Name-Last: Fukumoto
Title: Global value chain and its impacts on Malaysia’s trade balance
Abstract: 
 This study attempts to improve Malaysia’s aggregate import demand functions by considering disaggregated imports using import data classified by broad economic categories (BEC). The results suggest that the deeper the country’s involvement in international production sharing, the less essential relative prices will become. Economic growth driven by the electric industry might not harm the trade balance. However, an increase in domestically produced transport equipment might negatively affect the trade balance. Thus, developing and facilitating domestic production in the automobile industry is essential, and the government is advised to design policies to promote relevant industries.
Journal: Applied Economics
Pages: 1162-1171
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1998336
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998336
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1162-1171




Template-Type: ReDIF-Article 1.0
Author-Name: Lorna Syme
Author-X-Name-First: Lorna
Author-X-Name-Last: Syme
Author-Name: Elisabeth Mueller
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Mueller
Title: Does skill balancing prepare for entrepreneurship? Testing the underlying assumption of the jack-of-all-trades view
Abstract: 
 Lazear’s jack-of-all-trades view of entrepreneurship predicts that individuals with a more balanced skill set are more likely to enter entrepreneurship. This relationship is often explained by either the investment or the endowment hypothesis. Both hypotheses describe skill balancing by those more interested in entrepreneurship per se. Previous studies which have attempted to determine the relative importance of both hypotheses have neglected the important question of whether balanced skills are actually productive in preparing an individual for entrepreneurship. We test this key underlying assumption by introducing a new measure of skill balancing that measures the breadth of skills directly and introduces exogenous skill balancing due to involuntary job changes. Results suggest that skill balancing through an external shock to an individual’s skill set also increases the probability of entering entrepreneurship. Thus, the underlying assumption of the jack-of-all-trades view that balanced skills support entrepreneurship can also be confirmed for exogenous skill balancing. We contribute to the discussion of whether entrepreneurs are born or made by suggesting that even individuals not predisposed to entrepreneurship can be productively prepared for it.
Journal: Applied Economics
Pages: 1145-1161
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1998322
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998322
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1145-1161




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dempsey
Author-X-Name-First: Michael
Author-X-Name-Last: Dempsey
Author-Name: Huy Pham
Author-X-Name-First: Huy
Author-X-Name-Last: Pham
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Title: Investment in Cryptocurrencies: lessons for asset pricing and portfolio theory
Abstract: 
 We consider the performance of cryptocurrencies in the light of fundamental asset pricing and portfolio theory. We observe how a traditional focus on reducing asset return volatility with Markowitz diversification misses the significance of such volatility for growth. The recognition that asset growth is more likely subject to exponential or continuously compounding growth characteristics reveals that asset volatility can be exploited both across assets and across investment periods to deliver superior returns.
Journal: Applied Economics
Pages: 1137-1144
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1998321
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998321
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1137-1144




Template-Type: ReDIF-Article 1.0
Author-Name: Mar Delgado-Téllez
Author-X-Name-First: Mar
Author-X-Name-Last: Delgado-Téllez
Author-Name: Esther Gordo
Author-X-Name-First: Esther
Author-X-Name-Last: Gordo
Author-Name: Iván Kataryniuk
Author-X-Name-First: Iván
Author-X-Name-Last: Kataryniuk
Author-Name: Javier J. Pérez
Author-X-Name-First: Javier J.
Author-X-Name-Last: Pérez
Title: The decline in public investment: ``social dominance’’ or too-rigid fiscal rules?
Abstract: 
 Public investment in advanced economies is at historical lows, following a declining trend since the 1980s. Two main hypotheses have been posed to explain this evolution: (i) the ‘social dominance hypothesis’, whereby increased public social spending has been displacing investment from government’s budgets, despite the upward trend witnessed in tax burdens and debt; (ii) fiscal rules’ frameworks, that would have forced governments to reduce investment in their quest for compliance. In this paper, we jointly test the validity of these two duelling explanations using two empirical approaches (panel data models; local projections) for a sample of advanced economies comprising data for the past six decades. We find that both factors are relevant to explain the observed downward trend in investment, with social spending acting as a structural driver, whereas fiscal rules contributed mainly when applied in fiscal consolidation episodes.
Journal: Applied Economics
Pages: 1123-1136
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1990841
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990841
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1123-1136




Template-Type: ReDIF-Article 1.0
Author-Name: Sunghoon Chung
Author-X-Name-First: Sunghoon
Author-X-Name-Last: Chung
Author-Name: Joonhyung Lee
Author-X-Name-First: Joonhyung
Author-X-Name-Last: Lee
Title: The price effect of China tire safeguard
Abstract: 
 This paper evaluates the impact on the tire price of China Tire Safeguard implemented by the US government for three years from 2009 to 2012. We find that the safeguard tariffs have been fully reflected onto the unit value of imported tires from China, which implies that tire exporters from China have not absorbed the tariff in their original export price. Interestingly, we also find that the unit value of imported tires from the Rest of the World rose during the safeguard period even though their products were not subject to tariffs. At the same time, domestic US tire producers increased the price significantly. However, such price increases were temporary: both unit values (from China and the Rest of the World) and US producers’ price gradually declined when the safeguard tariff expired.
Journal: Applied Economics
Pages: 1111-1122
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1990206
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990206
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1111-1122




Template-Type: ReDIF-Article 1.0
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: Eduardo Schirmer Finn
Author-X-Name-First: Eduardo Schirmer
Author-X-Name-Last: Finn
Title: Can credibility offset electricity price effect on business confidence? An empirical investigation from a large emerging economy
Abstract: 
 We analyse the ‘offsetting effect’ that the central bank credibility can have in mitigating the harmful effects of the increase in electricity price on business confidence. Based on data from the Brazilian economy from 2010 to 2019, we perform several regressions with different specifications and methods, taking into account aggregate level and the eleven industrial sectors with higher electricity consumption. In general, our findings support the view that an increase in electricity price harms business confidence, but there is an ‘offsetting effect’ when central bank credibility increases.
Journal: Applied Economics
Pages: 1229-1242
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975031
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975031
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1229-1242




Template-Type: ReDIF-Article 1.0
Author-Name: Aolin Leng
Author-X-Name-First: Aolin
Author-X-Name-Last: Leng
Author-Name: Mengdi Wang
Author-X-Name-First: Mengdi
Author-X-Name-Last: Wang
Author-Name: Hanmei Chen
Author-X-Name-First: Hanmei
Author-X-Name-Last: Chen
Author-Name: Zhe Duan
Author-X-Name-First: Zhe
Author-X-Name-Last: Duan
Title: Can loan guarantee promote innovation behaviour in firms? Evidence from Chinese listed firms
Abstract: 
 Using a loan guarantee contract for credit financing is the primary method for firms to obtain external financial resources. We examine whether obtaining loan guarantees from third parties can promote innovation behaviour, and investigate the underlying mechanism. Using the 2007–2016 data of Chinese listed firms, we find that (i) firms with loan guarantees have lower innovation input but much higher patents output in that very year, (ii) higher the guarantee coverage cannot promote R&D expenditure in that very year and the following year. The results indicate that loan guarantees can promote innovation behaviour because it can ease the financial constraints the debtor facing, rather than the risk sharing mechanism.
Journal: Applied Economics
Pages: 1318-1334
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976381
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976381
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1318-1334




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Hua
Author-X-Name-First: Yu
Author-X-Name-Last: Hua
Author-Name: Hai-yan Zhang
Author-X-Name-First: Hai-yan
Author-X-Name-Last: Zhang
Author-Name: Hou-jun Liu
Author-X-Name-First: Hou-jun
Author-X-Name-Last: Liu
Title: Does pension affect labour supply? New evidence from large-scale rural pension policy reform in China
Abstract: 
 Using national longitudinal survey data, we study how the Chinese New Rural Pension Scheme (NRPS) reform affects the rural labour supply structure of individuals aged 20–70. Applying multiple regression approaches, we find NRPS does not significantly affect Chinese rural residents’ weekly working hours, labour force participation, or migration choices; only those aged 50–59 change their labour supply pattern after joining the pension system. Parental pensions motivate adult children to migrate out only when both parents receive pensions. Various factors are explored to understand our findings; the low subsidy that Chinese rural pensioners currently receive is the major factor. These results indicate that from the perspective of improving the welfare of the rural elderly and encouraging the more free flow of young rural labour force, it is necessary to increase the compensation level of NRPS.
Journal: Applied Economics
Pages: 1212-1228
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975030
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975030
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1212-1228




Template-Type: ReDIF-Article 1.0
Author-Name: Mingming Pan
Author-X-Name-First: Mingming
Author-X-Name-Last: Pan
Title: EU enlargements and U.S. FDI flows in the six core states
Abstract: 
 This paper addresses an under-researched question of whether regional integration with lower-income countries results in displacement of foreign direct investment (FDI) from high-income countries. Difference-in-differences (DID) estimations are used to, respectively, analyse the effects of the 1986 enlargement and the 2004/2007 enlargement of European Union (EU) on U.S. FDI flows into the EU core states. The results reveal a negative impact of the 1986 enlargement on EP FDI and positive effects of the 2004/2007 enlargement on EP and vertical FDI. The comparative analysis demonstrates that the impact of regional integration depends on the relative strength of a few factors determined by the circumstance. High-income countries do not necessarily lose FDI following an integration with lower-income countries. While the integration tends to divert labour-cost sensitive EP FDI away from the high-income members, as long as the high-income members adaptively go through industrial restructuring and take full advantage of the expanded production networks in response to the newly integrated regional environment, they are likely to become more resilient and competitive in the regional and global markets and reap the benefits of integration.
Journal: Applied Economics
Pages: 1301-1317
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976380
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976380
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1301-1317




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaodong Song
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Song
Author-Name: Saralees Nadarajah
Author-X-Name-First: Saralees
Author-X-Name-Last: Nadarajah
Title: New models for the extramarital affairs data
Abstract: 
 The extramarital affairs data set due to Fair is a popular data in the econometric literature. We propose two new models for the data. They are shown to provide better fits than many of the known models for the data. The fits were assessed in terms of AIC, residual plots, comparison of observed and predicted counts and some formal tests.
Journal: Applied Economics
Pages: 1243-1256
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975632
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975632
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1243-1256




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Ping Ang
Author-X-Name-First: Joshua Ping
Author-X-Name-Last: Ang
Author-Name: Fang Dong
Author-X-Name-First: Fang
Author-X-Name-Last: Dong
Title: The Effects and Counter-Effects of Unemployment and Stringency Responses to COVID-19: An International Analysis Using Simultaneous Equations Models
Abstract: 
 By applying the data from 59 countries to simultaneous equations models with 3SLS and GMM estimations, we analyse the effects and counter-effects of stringency of movement restrictions on unemployment rate and COVID-19 infection cases. On the one hand, our results show that the unemployment rate rises when the governments impose more stringent movement restrictions. On the other hand, a higher unemployment rate leads the government to lower stringency of movement restrictions. Our findings provide evidence on the tradeoff between unemployment rates and infection cases under the government’s virus containment intervention policies. This allows the policymakers to find a balance between public health emergencies and the economy. We also find that the stringency is affected positively by infection cases, negatively by the number of hospital beds per capita and healthcare spending per capita; the number of infection cases is affected positively by urban population density and negatively by an individualism index; and the unemployment rate is affected negatively by GDP.
Journal: Applied Economics
Pages: 1278-1300
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975634
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975634
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1278-1300




Template-Type: ReDIF-Article 1.0
Author-Name: Qingqing Fei
Author-X-Name-First: Qingqing
Author-X-Name-Last: Fei
Title: Opposite effects of returnee and non-local independent directors on firm’s environmental disclosure and performance
Abstract: 
 Government programmes and policies in China have brought energy conservation and emission reduction issues into focus. Given the positive role of independent directors and media in corporate governance, the study explores the impact of independent director’s characteristics and media exposure on firm’s environmental disclosure and performance. We find that independent director’s overseas background is positively associated with environmental behaviour, whereas non-local independent director is negatively related to environmental behaviour. The split-sample analyses further support that media coverage plays a positive role both through itself directly and via its impact on independent directors. In supplementary analyses, media exposure has a more significant effect on state-owned than on non-state-owned enterprises. Additionally, non-independent director’s overseas experience also improves firm’s environmental behaviour. The findings enable us to identify a specific channel to improve environmental disclosure and corporate governance, which is through the impact of media on certain independent directors such as returnee-independent directors in state-owned enterprises.
Journal: Applied Economics
Pages: 1257-1277
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975633
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975633
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1257-1277




Template-Type: ReDIF-Article 1.0
Author-Name: Jung K. Kim
Author-X-Name-First: Jung K.
Author-X-Name-Last: Kim
Author-Name: Yumi Koh
Author-X-Name-First: Yumi
Author-X-Name-Last: Koh
Title: Pretrial justice reform and black–white difference in employment
Abstract: 
 While criminal justice reforms aimed at reducing the size of pretrial detainee population are being implemented across the U.S., little is known about their impact on the labour market. Using difference-in-differences approach, we find that the 2017 New Jersey Criminal Justice Reform increased the employment probability among blacks in their prime working age (i.e. 25–54) by 4.2 to 6.8 percentage points; its effect among whites is negligible. Labour force participation, full-time job status, and working hours among blacks also increased. Our findings suggest that individuals not detained pretrial are absorbed by the formal labour market and that this contributes to an overall increase in employment.
Journal: Applied Economics
Pages: 1396-1414
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976387
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976387
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1396-1414




Template-Type: ReDIF-Article 1.0
Author-Name: Zhenguo Wang
Author-X-Name-First: Zhenguo
Author-X-Name-Last: Wang
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Author-Name: Chun Liao
Author-X-Name-First: Chun
Author-X-Name-Last: Liao
Author-Name: Hongshan Ai
Author-X-Name-First: Hongshan
Author-X-Name-Last: Ai
Author-Name: Xiangyu Yang
Author-X-Name-First: Xiangyu
Author-X-Name-Last: Yang
Title: What contributes to the growth of China’s embodied CO2 emissions? Incorporating the global value chains concept
Abstract: 
 Global value chains (GVCs) not only reshape trade patterns but also influence trade-related emissions worldwide. This paper estimates China’s aggregate and industrial embodied CO2 emissions in international fragmentation production networks in 2000–2014, and further adopts the chaining structural decomposition analysis (SDA) incorporating the GVCs concept to identify the effect of production fragmentation on embodied CO2 emissions. In addition, heterogeneities in different trade patterns (i.e. pure domestic, traditional, simple, and complex trades) are also examined. The chaining SDA results show that the increase in GVCs leads to China’s embodied CO2 emissions growth, in which the relocation effect of final products is greater than that of intermediate products. Moreover, China’s embodied CO2 emissions are mainly induced by pure domestic demand, with trade-related activities accounting for less than 30%. Furthermore, the effect of traditional final demand trade activity is outstripping that of those rising from the simple and complex GVCs activities.
Journal: Applied Economics
Pages: 1335-1351
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976382
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976382
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1335-1351




Template-Type: ReDIF-Article 1.0
Author-Name: Fateh Belaid
Author-X-Name-First: Fateh
Author-X-Name-Last: Belaid
Author-Name: Véronique Flambard
Author-X-Name-First: Véronique
Author-X-Name-Last: Flambard
Author-Name: Michelle Mongo
Author-X-Name-First: Michelle
Author-X-Name-Last: Mongo
Title: How large is the extent of COVID-19 on territorial inequality? France’s current situation and prospects
Abstract: 
 This study develops a straightforward statistical approach to explore the COVID-19 pandemic impact on inequalities. The setting of the study is the economic and social inequalities in France, as an illustration of a particular European country that has been severely affected by the current health crisis. Using rich regional data, we provide a clear picture of the COVID-19 impact on inequalities in France at the regional level. The findings show that the pandemic shocks were very asymmetrical with little correlation with the socio-demographic characteristics of a territory. The consequences of the economic losses suffered and the health distress plunged the territories into an unprecedented and multifaceted crisis. The results of this study provide some relevant policy recommendations that can be expanded beyond the French context. It provides some guidance on how to identify the impact of the health crisis on inequalities and the aggravating factors.
Journal: Applied Economics
Pages: 1432-1448
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976389
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976389
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1432-1448




Template-Type: ReDIF-Article 1.0
Author-Name: Paulin Gohoungodji
Author-X-Name-First: Paulin
Author-X-Name-Last: Gohoungodji
Author-Name: Nabil Amara
Author-X-Name-First: Nabil
Author-X-Name-Last: Amara
Title: Historical roots and influential publications in the area of innovation in the creative industries: A cited-references analysis using the Reference Publication Year Spectroscopy
Abstract: 
 This study explores the historical roots of the relatively new topic of innovation in the creative industries. We are interested in the contributions of researchers that have proven to be important to the topic over the long term. To do so, we used the Reference Publication Year Spectroscopy method. This method is based on the analysis of the frequency with which references are cited in publications in a specific research area, in our case, innovation in the creative industries. The study is based on a corpus of articles rigorously selected through a systematic review method of empirical articles published between 1998 and 2019. The results reveal 4585 cited references (CR) with 9 clearly identifiable peaks, the first of which is caused by the work of Schumpeter (1934) and the last by the book of Miles & Green (2008). Each of the peaks marks a major contribution to the evolution of the understanding of innovation in these industries with one or more publications, the majority of which have an economic basis. In addition, the study reveals that the three most influential publications in this field are the economically oriented books by Florida (2002), Caves (2000), and Miles & Green (2008).
Journal: Applied Economics
Pages: 1415-1431
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976388
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976388
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1415-1431




Template-Type: ReDIF-Article 1.0
Author-Name: Youshu Li
Author-X-Name-First: Youshu
Author-X-Name-Last: Li
Author-Name: Junjie Guo
Author-X-Name-First: Junjie
Author-X-Name-Last: Guo
Title: The asymmetric impacts of oil price and shocks on inflation in BRICS: a multiple threshold nonlinear ARDL model
Abstract: 
 This study investigates the asymmetric impacts of oil price and component shocks on inflation in the context of BRICS countries. We firstly decompose the oil price change into supply, demand and risk shocks and subsequently establish an empirical framework to explore asymmetric pass-through using a novel multiple threshold nonlinear autoregressive distributed lag model (MTNARDL). The extended model yields precise asymmetric estimates by splitting oil price change and disaggregated shocks into different partial sums. Our results reveal that significant asymmetries between oil price and inflation are only exhibited in China in the short run, suggests that inflationary effect is more dramatic when oil price decreases. For the supply shocks, strong asymmetries are found in Russia and China in the short term and in South Africa in the long term. Meanwhile demand shocks and risk shocks hold either nil asymmetry or weak, in most cases risk shocks have the weakest effect on inflation and the influence fading fast, demand shocks only exert impact temporarily during extreme fluctuation. Nonetheless, asymmetries are most important and significant at the highest and lowest quintiles. Considering the empirical results, this study provides some policy implications for policymakers and investors.
Journal: Applied Economics
Pages: 1377-1395
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976386
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976386
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1377-1395




Template-Type: ReDIF-Article 1.0
Author-Name: Vito Amendolagine
Author-X-Name-First: Vito
Author-X-Name-Last: Amendolagine
Author-Name: Lucia Piscitello
Author-X-Name-First: Lucia
Author-X-Name-Last: Piscitello
Author-Name: Roberta Rabellotti
Author-X-Name-First: Roberta
Author-X-Name-Last: Rabellotti
Title: The impact of OFDI in global cities on innovation by Indian multinationals
Abstract: 
 We investigate the impact of Outward Foreign Direct Investment (OFDI) on the innovation performance of Indian multinationals by analysing their choice of entry mode (cross-border acquisitions versus greenfield investments) and their international location decisions (i.e. choice to locate in a global city). We rely on an augmented fractional logit estimator for 170 foreign investments in high- and medium-high tech manufacturing sectors in the period 2003 to 2011 and find that: (i) compared to greenfield investments, acquisitions generate more technological opportunities; (ii) location in a global city has a negative impact on the Indian companies’ innovation performance; (iii) the positive effect of acquisition decreases if the investment is focused on a global city. These findings should be informative for both firms and government authorities involved in developing going-global strategies.
Journal: Applied Economics
Pages: 1352-1365
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976383
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976383
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1352-1365




Template-Type: ReDIF-Article 1.0
Author-Name: Theodoros Skevas
Author-X-Name-First: Theodoros
Author-X-Name-Last: Skevas
Author-Name: Ioannis Skevas
Author-X-Name-First: Ioannis
Author-X-Name-Last: Skevas
Author-Name: Nicholas Kalaitzandonakes
Author-X-Name-First: Nicholas
Author-X-Name-Last: Kalaitzandonakes
Title: The role of peer effects on farmers’ decision to adopt unmanned aerial vehicles: evidence from Missouri
Abstract: 
 This paper examines the role of peer effects on farmers’ decision to adopt Unmanned Aerial Vehicles (UAVs). This relationship is analysed by means of a Bayesian spatial autoregressive probit model applied to spatially explicit data describing the awareness, attitudes, and adoption of UAVs by 809 Missouri farmers. Results show that it is not only the farmers’ characteristics, awareness, and attitudes towards UAVs that affect adoption, but also the adoption behaviour and traits of neighbouring peers. Peer effects arise both from UAV adoption of nearby farmers and from spatial spillovers of farmers’ characteristics, awareness of UAV agricultural applications, expectations of economic and environmental benefits from UAV use and perceived neighbour privacy concerns in the use of UAVs.
Journal: Applied Economics
Pages: 1366-1376
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976384
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976384
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1366-1376




Template-Type: ReDIF-Article 1.0
Author-Name: Kuang-Cheng Chai
Author-X-Name-First: Kuang-Cheng
Author-X-Name-Last: Chai
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Author-Name: Chin-Piao Yeh
Author-X-Name-First: Chin-Piao
Author-X-Name-Last: Yeh
Author-Name: Li-Mei Liang
Author-X-Name-First: Li-Mei
Author-X-Name-Last: Liang
Title: External profit pressure and operating efficiency: evidence from Chinese listed companies
Abstract: 
 Compared with western developed countries, the maturity and effectiveness of China’s securities market are relatively low, and investors are more likely to be swayed by analysts’ opinions. Efficiency is an important indicator to measure the competitiveness of listed companies, analysts’ earnings pressure can not only make management inclined to short-term investment behaviour, but also affect stakeholders’ views on the company, which is not conducive to the company’s efficiency and long-term development. Therefore, this study examines the impact of external profit pressure on the operating efficiency of Chinese listed companies and its internal mechanism. The technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) of the samples of listed companies are calculated by data envelopment method (DEA), it is found that external profit pressure has a negative impact on TE and PTE but a positive impact on SE. The institutional investor plays an intermediary role between external profit pressure and operating efficiency, and corporate social responsibility regulates the relationship between external profit pressure and institutional investors’ shareholding. The conclusion of the research has important theoretical value and practical significance in clarifying the relationship between external profit pressure and the operating efficiency.
Journal: Applied Economics
Pages: 1449-1459
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1977772
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1977772
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1449-1459




Template-Type: ReDIF-Article 1.0
Author-Name: Jorge N. Valero-Gil
Author-X-Name-First: Jorge N.
Author-X-Name-Last: Valero-Gil
Author-Name: Magali Valero
Author-X-Name-First: Magali
Author-X-Name-Last: Valero
Title: Human capital and state income differences in Mexico
Abstract: 
 We study the relationship between differences in human capital and differences in output per worker of the federal entities of Mexico. We consider both quantity and quality of education in human capital formation. Our measure of quality of education is constructed using the OECD’s programme for International Student Assessment (PISA) maths achievement test scores. Our results are consistent with different methodologies and data sources. We find that variations in human capital explain upwards of 40% of the variations in state GDP per hour worked. Our results indicate that Mexican states should place more emphasis both in the quantity as well as quality of schooling to support economic development of the states.
Journal: Applied Economics
Pages: 1544-1561
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980197
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980197
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1544-1561




Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: Explaining the gender wage gap in China’s healthcare sector: a non-parametric analysis
Abstract: 
 This study provides empirical evidence for explaining the gender wage differential in China’s healthcare sector. We first propose a signalling game by capturing the progressive wage incentive in this sector. Next, we show that the model primitives are non-parametrically identified and estimable using recently developed methodologies related to measurement errors. Adopting a dataset from the China Household Income Project (CHIP2013), we provide empirical evidence for gender inequality in job placement for labour in the private sector. Moreover, there is no unequal treatment in China’s healthcare sector. Female labour in the private sector are more likely to subjectively choose job positions with less risk and more stable returns in response to the high-powered incentives that are provided, and this leads to gender wage differential in China’s healthcare sector.
Journal: Applied Economics
Pages: 1507-1526
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1979190
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1979190
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1507-1526




Template-Type: ReDIF-Article 1.0
Author-Name: Aktham Issa Maghyereh
Author-X-Name-First: Aktham Issa
Author-X-Name-Last: Maghyereh
Author-Name: Hussein A. Abdoh
Author-X-Name-First: Hussein A.
Author-X-Name-Last: Abdoh
Title: COVID-19 pandemic and volatility interdependence between gold and financial assets
Abstract: 
 By using high-frequency data, we examine the volatility linkages patterns between gold and several important asset classes including foreign currency, US equity, oil, bitcoin and agriculture commodity in the period surrounding the COVID-19 pandemic. To this end, we use the cross-wavelet power transform, the cross-wavelet coherency and the dynamic frequency-domain connectedness. We find that the pandemic caused a greater positive association in volatility series between gold and each of the financial assets considered. We document clear findings of phase difference of lead-lag volatility interdependence between gold and the financial assets that varies according to timescales and periods. In general, the long-term connections are strengthened during the pandemic except the case of bitcoin and soya bean suggesting a long-term diversification ability when including them in a portfolio containing gold.
Journal: Applied Economics
Pages: 1473-1486
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1977774
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1977774
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1473-1486




Template-Type: ReDIF-Article 1.0
Author-Name: Greg Filbeck
Author-X-Name-First: Greg
Author-X-Name-Last: Filbeck
Author-Name: Eric Robbins
Author-X-Name-First: Eric
Author-X-Name-Last: Robbins
Author-Name: Xin Zhao
Author-X-Name-First: Xin
Author-X-Name-Last: Zhao
Title: Social capital during the coronavirus pandemic: the value of corporate benevolence
Abstract: 
 In this paper, we explore market reaction to announcements of corporate donations associated with the COVID-19 crisis. Companies with larger firm size, higher leverage, higher institutional ownership, and higher ESG rankings are more likely to donate COVID relief. We observe statistically significant positive abnormal returns over the event window, driven by a subsample of community relief funds. Our results support the notion of a strategic, reputational premium for participating firms. Consistent with signalling theory, we find firms without ESG scores show positive share price responses to corporate benevolence announcements. This finding suggests the market is less likely to anticipate corporate acts of benevolence from firms with missing ESG scores. Our findings suggest that the market positively reacts to corporate philanthropy news during a crisis. The strongest stock market reaction is related to those firms with missing or less favourable ESG scores.
Journal: Applied Economics
Pages: 1460-1472
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1977773
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1977773
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1460-1472




Template-Type: ReDIF-Article 1.0
Author-Name: Dinesh Gajurel
Author-X-Name-First: Dinesh
Author-X-Name-Last: Gajurel
Author-Name: Akhila Chawla
Author-X-Name-First: Akhila
Author-X-Name-Last: Chawla
Title: The oil price crisis and contagion effects on the Canadian economy
Abstract: 
 Using a multifactor model, this paper investigates industry-level sensitivities to oil price changes and their spillover effects on 11 economic sectors in Canada during the 2014–2016 oil price crisis through a multisector analysis of sectoral equity indices. The three-factor model proposes a benchmark for interdependence between different sectors and examines the contagion effects transmitted via a common factor, a global oil factor, and a factor specific to the domestic oil and gas (O&G) sector during the crisis period. We provide empirical evidence of a strong and positive relationship between the global oil factor and the Canadian equity market. Results show that all sectoral equity portfolios are exposed to the global oil price. Also, though most economic sectoral portfolios experience contagion effects from the global oil market during the crisis period, some sectors show resilience. Finally, we find limited evidence on the effect of shocks originating in the O&G sector on other sectors of the Canadian economy. Our findings have implications for policy makers, managers and investors.
Journal: Applied Economics
Pages: 1527-1543
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980196
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980196
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1527-1543




Template-Type: ReDIF-Article 1.0
Author-Name: Yosef Bonaparte
Author-X-Name-First: Yosef
Author-X-Name-Last: Bonaparte
Author-Name: Rohan Christie-David
Author-X-Name-First: Rohan
Author-X-Name-Last: Christie-David
Author-Name: David Koslowsky
Author-X-Name-First: David
Author-X-Name-Last: Koslowsky
Title: Political heterogeneity, subjective optimism, and stock market outcomes
Abstract: 
 We demonstrate that political heterogeneity, proxied by the spread in subjective optimism between Democratic and Republican investors, affects stock market returns and volatility. Our intuition, drawn from the psychology literature on intergroup conflict, leads us to infer that increased political heterogeneity causes investors to become entrenched, not just in their political beliefs, but also in their economic outlook. Consequently, they become resistant to contrary news, and this behaviour is linked to lower market volatility and higher market returns. These findings are further underpinned by evidence that shows idiosyncratic volatility, which reflects the level of stock responses to firm-specific information, to decrease as political heterogeneity increases.
Journal: Applied Economics
Pages: 1487-1506
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1977775
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1977775
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1487-1506




Template-Type: ReDIF-Article 1.0
Author-Name: Sie Won Kim
Author-X-Name-First: Sie Won
Author-X-Name-Last: Kim
Title: The effects of the OPT visa extension rule on STEM business programs in the U.S.
Abstract: 
 I investigate the effects of STEM Optional Practical Training (OPT) visa extension rule on Science, Technology, Engineering, and Mathematics (STEM) programme offerings and student degree attainment. The extension rule enables international students with STEM degrees to apply for a 17-month extension of the OPT period to work in the United States. Compared to studies on student choices, little is known about supply side responses to immigration policies. I use U.S. universities’ major code-level data from 2007 to 2018 and exploit a business major code designated as a STEM major in May 2012. Using a difference-in-differences model, I find that the OPT extension rule increases the probability of offering STEM-designated business programmes by 4 percentage points (16.2%) at the bachelor’s level and 12.2 percentage points (90.3%) at the master’s level. Event-study estimates show that the probability of offering STEM business programmes increases by 5.5 to 25.5 percentage points one to five years after the visa policy change at the master’s level. In addition, the extension of the OPT period increases the number of degrees awarded to international students by 62.2% at the master’s level in STEM business majors.
Journal: Applied Economics
Pages: 1654-1671
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1982131
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982131
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1654-1671




Template-Type: ReDIF-Article 1.0
Author-Name: Vito Pipitone
Author-X-Name-First: Vito
Author-X-Name-Last: Pipitone
Author-Name: Francesca Licari
Author-X-Name-First: Francesca
Author-X-Name-Last: Licari
Author-Name: Roberto Foderà
Author-X-Name-First: Roberto
Author-X-Name-Last: Foderà
Author-Name: Alessandra Faggian
Author-X-Name-First: Alessandra
Author-X-Name-Last: Faggian
Title: Internal migration and technical efficiency: the case of Italy
Abstract: 
 The aim of the paper is to contribute to the study of the determinants of the internal mobility of people. To study the determinants of internal migration, we introduce a new explanatory variable, i.e. technical efficiency of Local Labour Market Areas. This variable is particularly relevant, as it allows us to summarize the entrepreneurial capacity connected to the cultural and social context of an area. Our results, for the case of Italy, suggest that technical efficiency contributes greatly to explaining internal migratory flows and the various patterns of migration among different groups of individuals. By looking more specifically at different groups of individuals, we also uncover important differences between natives and foreigners and among different age-groups.
Journal: Applied Economics
Pages: 1639-1653
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980491
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980491
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1639-1653




Template-Type: ReDIF-Article 1.0
Author-Name: Yian Chen
Author-X-Name-First: Yian
Author-X-Name-Last: Chen
Title: Misallocation of Talent and Innovation: evidence from China
Abstract: 
 This study examined the effects of the misallocation of talent between the government and private enterprise sectors on innovation. By using the 2005 inter-census population survey and patent database, we find a negative correlation between misallocation of talent and innovation intensity. Exploring possible mechanisms, we conclude that this negative correlation between misallocation of talent and innovation was best explained by the negative impact of such misallocation upon entrepreneurship and R&D spending. That is, misallocations of talent reduce the willingness of people to be productive Schumpeterian entrepreneurs, and the majority of companies affected by such misallocation are reluctant to increase R&D spending. Most importantly, we find that excessive talent enters government departments in prefectures worse the suppression of innovation. This result sheds new light on the important role of allocation of talent on innovation for scholars and policymakers. Our findings have important implications for how to effectively allocate talent between the government vs.enterprise sectors in order to encourage more productive, value-creating activities.
Journal: Applied Economics
Pages: 1598-1624
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980202
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980202
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1598-1624




Template-Type: ReDIF-Article 1.0
Author-Name: Stoyan V. Stoyanov
Author-X-Name-First: Stoyan V.
Author-X-Name-Last: Stoyanov
Author-Name: Svetlozar T. Rachev
Author-X-Name-First: Svetlozar T.
Author-X-Name-Last: Rachev
Author-Name: Abootaleb Shirvani
Author-X-Name-First: Abootaleb
Author-X-Name-Last: Shirvani
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Title: Option pricing in an investment risk-return setting
Abstract: 
 In this paper, we combine modern portfolio theory and option pricing theory so that a trader taking a position in a European option contract, the underlying assets, and a risk-free bond can construct an optimal portfolio while ensuring that the option is perfectly hedged at maturity. We derive both the optimal holdings in the underlying assets for the trader’s optimal mean-variance portfolio and the amount of unhedged risk prior to maturity. Solutions assuming the price dynamics in the underlying assets follow a discrete binomial model, and continuous diffusions, stochastic volatility, volatility-of-volatility, and Merton’s jump-diffusion model are derived.
Journal: Applied Economics
Pages: 1625-1638
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980490
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980490
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1625-1638




Template-Type: ReDIF-Article 1.0
Author-Name: Raquel Carrasco
Author-X-Name-First: Raquel
Author-X-Name-Last: Carrasco
Author-Name: Virginia Hernanz
Author-X-Name-First: Virginia
Author-X-Name-Last: Hernanz
Title: Dependent self-employment across Europe: involuntariness, country’s wealth and labour market institutions
Abstract: 
 This article investigates the degree of involuntariness in the entrepreneurial activity of the dependent solo self-employed, as well as its association with the country’s wealth and labour market institutions. Using the unique information available in the 2017 European Labour Force Survey (EU-LFS) for 29 countries, we can properly identify the dependent solo self-employed and analyse to what extent they behave in accordance with an occupational choice model when making their self-employment decision. For that, we account for the reasons why they enter into self-employment (voluntarily or involuntarily either out of necessity or requested by the former employer). The results indicate that involuntary self-employment, mostly due to being required by previous employer, significantly increases the probability of being dependent solo versus non-dependent self-employed. The wealthiest countries have a lower incidence of this group of workers, mainly if they are involuntary self-employed. Moreover, labour market institutions that decrease the flexibility of paid employment tend to increase the incidence of dependent solo self-employment. These results point to this group of workers being particularly vulnerable with the degree of vulnerability significantly increasing for those self-employed with a lesser degree of occupational choice.
Journal: Applied Economics
Pages: 1568-1583
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980200
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980200
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1568-1583




Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Title: Interpolation and correlation
Abstract: 
 Historical time series sometimes have missing observations. It is common practice either to ignore these missing values or otherwise to interpolate between the adjacent observations and continue with the interpolated data as true data. This paper shows that interpolation changes the autocorrelation structure of the time series. Ignoring such autocorrelation in subsequent correlation or regression analysis can lead to spurious results. A simple method is presented to prevent spurious results. A detailed illustration highlights the main issues.
Journal: Applied Economics
Pages: 1562-1567
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980199
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980199
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1562-1567




Template-Type: ReDIF-Article 1.0
Author-Name: Bochuan Dai
Author-X-Name-First: Bochuan
Author-X-Name-Last: Dai
Author-Name: Ben R. Marshall
Author-X-Name-First: Ben R.
Author-X-Name-Last: Marshall
Author-Name: Nhut Hoang Nguyen
Author-X-Name-First: Nhut Hoang
Author-X-Name-Last: Nguyen
Author-Name: Nuttawat Visaltanachoti
Author-X-Name-First: Nuttawat
Author-X-Name-Last: Visaltanachoti
Title: Do stop-loss rules add value in international equity market allocation?
Abstract: 
 We consider the performance of stop-loss rules in international equity market allocation. Diversifying internationally gives the potential of larger returns but often involved higher risks, so it is a natural setting to consider these rules. Our results indicate that stop-loss rules, which involve closing positions that decline by a pre-specified percentage, are an important determinant of asset allocation in a parametric portfolio policy setting. They generate portfolios that have superior mean and risk-adjusted returns for investors. This result holds in general but is economically stronger in declining markets. The outperformance is robust to the inclusion of transaction costs.
Journal: Applied Economics
Pages: 1584-1597
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980201
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980201
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1584-1597




Template-Type: ReDIF-Article 1.0
Author-Name: Abhinava Tripathi
Author-X-Name-First: Abhinava
Author-X-Name-Last: Tripathi
Author-Name: Alok Dixit
Author-X-Name-First: Alok
Author-X-Name-Last: Dixit
Author-Name:  Vipul
Author-X-Name-First: 
Author-X-Name-Last: Vipul
Title: Liquidity commonality in the cryptocurrency market
Abstract: 
 Motivated by the unique transaction cost structure of the cryptocurrency (CC) market11The authors thank the anonymous reviewer for the review of the manuscript and the insightful comments., this study investigates the phenomenon of liquidity commonality across a sample of 53 CCs. The study employs the google search volume index (GSVI) measure to capture the retail investor’s attention towards the CC market. Using the quantile regression method, we document the liquidity dynamics of CCs that is contrasting to other asset classes, and is ascribed to its unique transaction cost structure. In view of the relatively high liquidity commonality levels found in the CC market, this paper sounds a note of caution to retail investors on episodic non-availability of liquidity in CCs.
Journal: Applied Economics
Pages: 1727-1741
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1982128
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982128
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1727-1741




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Serkan Tosun
Author-X-Name-First: Mehmet Serkan
Author-X-Name-Last: Tosun
Author-Name: Serhat Yildiz
Author-X-Name-First: Serhat
Author-X-Name-Last: Yildiz
Title: The relationship between tax uncertainty and trade credit: firm-level evidence from the United States
Abstract: 
 We examine whether firms’ tax uncertainty affect their trade credit and inventory investment policies. Using a measure of tax uncertainty based on an accounting reserve for contingent tax liability, we find that tax uncertainty is negatively associated with trade credit use and inventory investment. In terms of economic significance, the effect of tax uncertainty on trade credit use is comparable to those of the firm’s cash flow and leverage. Overall, our findings highlight a new channel through which tax planning policies affect corporate decisions and show that the firm’s tax planning policies are important determinants of its trade credit use and inventory investment. Our results are robust to different empirical specifications and tests.
Journal: Applied Economics
Pages: 1742-1758
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1982129
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982129
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1742-1758




Template-Type: ReDIF-Article 1.0
Author-Name: Markus Zimmermann
Author-X-Name-First: Markus
Author-X-Name-Last: Zimmermann
Title: Explaining gaps in educational transitions between migrant and native school leavers
Abstract: 
 This paper analyzes the reasons for the gaps in post-schooling transitions between migrant and native pupils in Germany. While differences in parental background or skills partly explain the gaps, they are not sufficient. Conditional on these factors, there is a ‘polarization’ of educational choices: migrants are more likely to attend tertiary education, less likely to attend vocational education, and more likely to end without qualified training than their background and skills would predict. This is driven by the migrants’ more academic career aspirations and expectations before leaving school. On the one hand, these higher ambitions allow high-skilled migrants to achieve tertiary education despite their less favourable background. On the other hand, low-skilled migrants who in Germany’s tracked school system do not have the option to enter tertiary education, may be diverted from vocational training as a more viable alternative. Finally, possible explanations for the different career plans are discussed.
Journal: Applied Economics
Pages: 1759-1786
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1982130
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982130
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1759-1786




Template-Type: ReDIF-Article 1.0
Author-Name: Erick Kitenge
Author-X-Name-First: Erick
Author-X-Name-Last: Kitenge
Author-Name: Saima Bashir
Author-X-Name-First: Saima
Author-X-Name-Last: Bashir
Title: The effect of financial access on convergence: evidence from the US agricultural sector
Abstract: 
 We investigate the effect of financial access on convergence in the US agricultural sector. We find that financial access allows states with lower real per-capita agricultural production to catch up faster with those with higher real per-capita agricultural production. Our results are robust to various specifications and in the presence of other factors determinant of dynamics in the agricultural sector, such as the level of unemployment and competition. Therefore, this paper unveils higher opportunity costs of lower financial access in terms of welfare improvement, policy dissemination, and technological spillovers across the states. We recommend the implementations and dissemination of strategiesthat will ensure the availability, to all farmers, of innovations developed in agriculture.
Journal: Applied Economics
Pages: 1715-1726
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980495
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980495
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1715-1726




Template-Type: ReDIF-Article 1.0
Author-Name: Tianyuan Luo
Author-X-Name-First: Tianyuan
Author-X-Name-Last: Luo
Author-Name: Zhengfei Guan
Author-X-Name-First: Zhengfei
Author-X-Name-Last: Guan
Title: Public health insurance and migration of farm workers in the U.S
Abstract: 
 Labour shortages have been a major challenge for U.S. agriculture. Migrant farm workers who constitute a crucial agricultural labour force across the country have experienced a notable decline in recent years. Using the Propensity Score Matching method, this study examines how public health insurance of the Medicaid programme affects the migration of farm workers of different legal statuses. Unlike citizen farm workers, permanent-resident and undocumented farm workers decreased migration across states due to the impact of Medicaid. The findings suggest that a more suitable health insurance design that does not disrupt farm workers’ migration patterns during production seasons is needed to increase agricultural labour supply.
Journal: Applied Economics
Pages: 1672-1687
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980492
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980492
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1672-1687




Template-Type: ReDIF-Article 1.0
Author-Name: Ren Wang
Author-X-Name-First: Ren
Author-X-Name-Last: Wang
Author-Name: Jie Hou
Author-X-Name-First: Jie
Author-X-Name-Last: Hou
Title: Collateral versus crowding out: policy implications on China’s housing and manufacture sectors
Abstract: 
 We study the mechanisms through which macroeconomic level shocks, namely macro easing and industry curbing policies from the government and housing preference shock from the households, exert their impact on the real estate and manufacturer sectors in China. Our analysis shows that whilst the macro easing monetary policy stimulates overall investment in the two sectors, it also causes the crowding out effect, inducing the capital flow disproportionally to the real estate industry. In this sense, it resembles the positive housing preference shock by contributing to the imbalance between housing and real industry. Meanwhile, policies aimed at curbing real estate boom have a leakage effect, which can offset the crowding out effect from the housing preference and easing monetary policy shocks. Both crowding out and leakage effects stem from the heterogeneous characteristics of durable and non-durable goods produced by real estate and manufacture sectors, respectively, instead of from heterogeneous borrowing constraints. Our results add to the understanding of transmission mechanisms of different policies on production sectors and provide insights for policy makers on how to effectively apply policies to affect the economy in a macro-prudential way.
Journal: Applied Economics
Pages: 1700-1714
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980494
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980494
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1700-1714




Template-Type: ReDIF-Article 1.0
Author-Name: Jean-François Outreville
Author-X-Name-First: Jean-François
Author-X-Name-Last: Outreville
Author-Name: Lara Agnoli
Author-X-Name-First: Lara
Author-X-Name-Last: Agnoli
Author-Name: Eric Le Fur
Author-X-Name-First: Eric
Author-X-Name-Last: Le Fur
Title: Ranking journals: the Best-Worst scaling approach applied to the field of wine economics
Abstract: 
 What are the major journals for wine economists? Which ones are the most influential? Journal rankings are intended to reflect the place of a journal within its field, the relative difficulty of being published in that journal, and the prestige associated with it. Since no consensus has been reached as to the superiority of a given methodology, the objective of this paper is to present a new peer evaluation methodology based on a Best-Worst scaling approach applied to the field of research in wine economics and business. The list of relevant journals was drawn from a citation-based analysis and a two-steps survey was launched in 2020 involving academic researchers in this field. The results support the idea that the Best-Worst approach is a useful tool to rank journals through peer evaluation in new fields of research. Further, this exercise is of potential interest for the field of wine economics and those active within it.
Journal: Applied Economics
Pages: 1688-1699
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980493
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980493
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1688-1699




Template-Type: ReDIF-Article 1.0
Author-Name: Liangyong Wan
Author-X-Name-First: Liangyong
Author-X-Name-Last: Wan
Author-Name: Rui Li
Author-X-Name-First: Rui
Author-X-Name-Last: Li
Author-Name: Yujiao Chen
Author-X-Name-First: Yujiao
Author-X-Name-Last: Chen
Title: Negative performance feedback and corporate venture capital: The moderating effect of CEO overconfidence
Abstract: 
 Corporate venture capital (CVC) has consistently proven its importance for firm innovation, growth, and other strategic goals. However, research on the antecedents of CVC is still scarce. Drawing on the behavioural theory of the firm, we examine how performance feedback affects the decision to pursue CVC. Empirical results using panel data on Chinese A-share listed firms from 2011 to 2019 indicate that there is an inverted U-shaped relationship between negative performance feedback and the probability of initiating CVC. Moreover, such an effect is moderated by CEO overconfidence in that it weakens the inverted U-shaped relationship. Further study shows that CVC aids in firm innovation and creates firm value. Our findings highlight the importance of performance feedback on corporate venture capital.
Journal: Applied Economics
Pages: 1829-1843
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1982133
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982133
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1829-1843




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Biewen
Author-X-Name-First: Martin
Author-X-Name-Last: Biewen
Author-Name: Jakob Schwerter
Author-X-Name-First: Jakob
Author-X-Name-Last: Schwerter
Title: Does more maths and natural sciences in high school increase the share of female STEM workers? Evidence from a curriculum reform
Abstract: 
 This paper studies the consequences of a curriculum reform of the last two years of high school in one of the German federal states on the share of male and female students who complete degrees in STEM subjects and later work in STEM occupations. The reform had two important aspects: (i) it equalized all students’ exposure to maths by making advanced maths compulsory in the last two years of high school; and (ii) increased the instruction time from three to four hours per week and increased the level of instruction in maths and the natural sciences for some 80% of students, more so for females than for males. Our results suggest that, despite its substantial nature, the reform did not change the share of men completing STEM degrees but reduced the share of women graduating from STEM programmes. Moreover, we do not find general reform effects on the share of individuals working in STEM occupations after graduation for both men and women.
Journal: Applied Economics
Pages: 1889-1911
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983139
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983139
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1889-1911




Template-Type: ReDIF-Article 1.0
Author-Name: Edward Lawrence
Author-X-Name-First: Edward
Author-X-Name-Last: Lawrence
Author-Name: Mehul Raithatha
Author-X-Name-First: Mehul
Author-X-Name-Last: Raithatha
Author-Name: Robinson Reyes-Peña
Author-X-Name-First: Robinson
Author-X-Name-Last: Reyes-Peña
Title: The differing impact of COVID-19 across Republican and Democratic states
Abstract: 
 Decision-making by governments during the COVID-19 health crisis pertains a delicate balance between physical and financial health of individuals. We compare the health and economic outcomes resulting from the respective responses adopted by Republican and Democratic states in the US. Our results show that the more restrictive measures adopted by Democratic states resulted in more severe economic shocks as proxied by lower levels of employment, lower levels of individuals’ earnings and an inferior performance in regional banking activity compared to Republican states. Although the number of infections is higher in Republican states, we find that the level of hospitalizations and mortality are not significantly different across Republican and Democratic states.
Journal: Applied Economics
Pages: 1864-1876
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983137
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983137
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1864-1876




Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: Life expectancy in nursing homes
Abstract: 
 It is well known that life expectancy in nursing homes (NHs) is lower for older adults than those residing elsewhere. In this paper, we attempt to discover the exact extent of this loss of life expectancy, and whether it can be explained by pre-existing health state conditions, especially the seriousness of dementia. We use a parametric survival model, on a large data set spanning up to 13 years, which covers health states and types of residence for all time periods until a person dies. In the absence of health state controls, the loss of life expectancy is 47 months. Accounting for health states still leads to a 41-month loss of life. Even those with serious dementia would live longer lives if not residing in a NH. We then value the estimated loss of life years. The losses are large, equal to $1.7 million per NH resident, and $1.87 trillion for the US NH population.
Journal: Applied Economics
Pages: 1877-1888
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983138
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983138
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1877-1888




Template-Type: ReDIF-Article 1.0
Author-Name: Vaibhav Lalwani
Author-X-Name-First: Vaibhav
Author-X-Name-Last: Lalwani
Author-Name: Vedprakash Vasantrao Meshram
Author-X-Name-First: Vedprakash Vasantrao
Author-X-Name-Last: Meshram
Title: The cross-section of Indian stock returns: evidence using machine learning
Abstract: 
 We test whether 35 stock characteristics can explain the cross-section of stock returns in India. We address the limitations of previous studies by using a comprehensive, survivorship bias free sample of all firms listed on the major Indian stock exchanges from 1994 to 2019. Results from Fama-Macbeth regressions show as many as 14 predictors breaching the significance threshold of t-stats greater than three. We also use machine learning methods to generate rolling one-month ahead out-of-sample forecasts of stock returns for all firms in our sample. We find substantial improvement in forecast accuracy when using machine learning compared to OLS. Further, we run additional tests for understanding the economic significance of our findings. Investment strategies based on model forecasts provide significant returns to investors.
Journal: Applied Economics
Pages: 1814-1828
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1982132
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982132
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1814-1828




Template-Type: ReDIF-Article 1.0
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Author-Name: Bakr Al-Gamrh
Author-X-Name-First: Bakr
Author-X-Name-Last: Al-Gamrh
Author-Name: Sultan Sikandar Mirza
Author-X-Name-First: Sultan Sikandar
Author-X-Name-Last: Mirza
Title: Corporate social responsibility and firm-value: the role of sensitive industries and CEOs power in China
Abstract: 
 Using a large panel dataset of 861 listed Chinese firms, the present study investigates whether corporate social responsibility (CSR) affects firm-value. It examines the influence of five CSR dimensions on firm-value. Then, it pinpoints the moderating impact of industry-sensitivity and power concentration of the CEO. In contrast to developed economy’s evidence, the results show an overall negative impact of CSR on firm-value. Looking closer at the dimensions separately, we find a negative impact of most of the CSR dimensions and a positive impact of some other CSR dimensions on firm-value. However, we observe that CSR enhances the value of firms operating in sensitive industries. Similarly, we find that a powerful CEO can also create firm-value through CSR by aligning CSR practices with the firms’ objectives. Our results are sufficiently rigorous to alternate proxies of CSR.
Journal: Applied Economics
Pages: 1844-1863
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983136
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983136
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1844-1863




Template-Type: ReDIF-Article 1.0
Author-Name: Wenyan Zhuo
Author-X-Name-First: Wenyan
Author-X-Name-Last: Zhuo
Author-Name: Jingru Wang
Author-X-Name-First: Jingru
Author-X-Name-Last: Wang
Author-Name: Jiawu Peng
Author-X-Name-First: Jiawu
Author-X-Name-Last: Peng
Title: The interaction of retailer’s investment strategy and supplier’s entry modes into the retail market
Abstract: 
 This paper considers the interaction between the retailer’s investment strategy and the mode by which the supplier enters the market in a two-echelon supply chain. The retailer who invests in upgrading the supplier’s production technology, may face a supplier entering the market through encroachment or holding shares. Our findings indicate that supplier encroachment curbs the retailer’s incentive to invest in technology upgrades. In contrast, the supplier holding the retailer’s shares enhances the retailer’s incentive to invest in technology upgrades. In particular, if the supplier chooses to hold shares in the retailer and the percentage of the retailer’s shares held by the supplier is small, a ‘win-win’ result can be achieved. Moreover, our study also reveals that the retailer’s investment strategy can impact the supplier’s entry mode. Without the retailer’s investment, the supplier prefers to enter the market through encroachment. However, when the retailer invests in upgrading the supplier’s production technology, we confirm that the supplier would choose to hold shares in the retailer under certain conditions. Finally, we further extend two single-entry modes to a mixed-entry mode in which the supplier enters the retail market by encroachment and holding the retailer’s shares simultaneously.
Journal: Applied Economics
Pages: 1787-1813
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1998329
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998329
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1787-1813




Template-Type: ReDIF-Article 1.0
Author-Name: Chai Bin Feng
Author-X-Name-First: Chai Bin
Author-X-Name-Last: Feng
Author-Name: Sultan Sikandar Mirza
Author-X-Name-First: Sultan Sikandar
Author-X-Name-Last: Mirza
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Author-Name: Ammar Ali Gull
Author-X-Name-First: Ammar Ali
Author-X-Name-Last: Gull
Title: The impact of financial flexibility and directors’ academic experience on corporate R&D investments: a quantile regression approach
Abstract: 
 This study investigates the impact of financial flexibility and academic experience of a firm’s board on corporate R&D investments in China. It also explores the moderating role of directors’ academic experience on the relationship between financial flexibility and R&D investments. We apply ordinary least square, fixed effects and quantile regression analysis using panel data of 2,195 A-share firms listed on Shanghai and Shenzhen stock exchanges during the period from 2011 to 2018. We find that both financial flexibility and directors’ academic experience promote R&D investments of Chinese non-financial firms. We also observe that directors’ academic experience weakens the positive impact of financial flexibility on R&D investments for firms operating in underdeveloped financial regions, whereas it strengthens the positive impact of financial flexibility on R&D investments for firms operating in developed financial regions. Our quantile regression results suggest that academic experience has a highly significant positive moderating impact on the financial flexibility of lower R&D investment firms relative to high R&D investment firms. These results are robust to alternate proxy of financial flexibility and endogeneity issues due to reverse causality.
Journal: Applied Economics
Pages: 1974-1988
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983145
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983145
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1974-1988




Template-Type: ReDIF-Article 1.0
Author-Name: Aaron M. Gamino
Author-X-Name-First: Aaron M.
Author-X-Name-Last: Gamino
Title: The impact of the consolidated omnibus reconciliation act of 1985 on young adult health insurance coverage
Abstract: 
 The Consolidated Omnibus Reconciliation Act of 1985 (COBRA) contained provisions granting individuals the opportunity to continue employment-based insurance coverage following qualifying events which would otherwise cause the loss of coverage. In this paper, I examine the impact of COBRA coverage on young adult health insurance coverage following the loss of dependent status, a qualifying event. I use the 1984 to 1989 panels of the Survey of Income Program Participation in a difference-in-differences framework to provide the first estimates of COBRA’s impact on young adult insurance status. I find that individuals in the affected age group were 4.5 percentage points more likely to be insured following COBRA going into effect. This increase is largely due to gains in employer sponsored insurance – particularly as a dependent – and is robust to a variety of sensitivity checks. I find considerable heterogeneity by sex; insurance gains are concentrated among young men. These findings suggest that COBRA’s access to continued employer sponsored coverage after ageing out as a dependent reduced uninsurance among young adults.
Journal: Applied Economics
Pages: 1945-1956
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983142
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983142
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1945-1956




Template-Type: ReDIF-Article 1.0
Author-Name: Sedjro Aaron Alovokpinhou
Author-X-Name-First: Sedjro Aaron
Author-X-Name-Last: Alovokpinhou
Author-Name: Christopher Malikane
Author-X-Name-First: Christopher
Author-X-Name-Last: Malikane
Author-Name: Tshepo Mokoka
Author-X-Name-First: Tshepo
Author-X-Name-Last: Mokoka
Title: Inventory dynamics and endogenous persistence in a new Keynesian model
Abstract: 
 We show that a New Keynesian model incorporating inventory dynamics can generate a hump-shaped response of macro-variables to shocks even without habit formation. The impulse responses from the calibrated model show that, in the absence of habit formation, the macro-variables, including output and consumption gaps and the real wage, display a gradual hump-shaped response to monetary policy shocks. We calibrate seven other variants of the model without habit formation. We find that the results still hold in a flexible price model, while the presence of inventories drives the persistence of the macro-variables. Besides, the model replicates most of the empirical business cycle regularities of inventories and the inventory–sales ratio in the data.
Journal: Applied Economics
Pages: 1957-1973
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983144
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983144
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1957-1973




Template-Type: ReDIF-Article 1.0
Author-Name: Selina Bruns
Author-X-Name-First: Selina
Author-X-Name-Last: Bruns
Author-Name: Oliver Mußhoff
Author-X-Name-First: Oliver
Author-X-Name-Last: Mußhoff
Title: An empirical identification of temptation goods: Perceptions of Cambodian smallholder farmers
Abstract: 
 Spending money on goods that satisfy oneself at the moment but not necessarily in the future – temptation goods – is a bothersome habit that applies to most people. However, with very low income, spending on temptation goods can potentially trap a household in chronic poverty, as such spending further minimizes the little financial resources crucially needed. Yet, although studies have included temptation goods into their household analysis, there is no empirical in-depth investigation of what exactly is perceived as a temptation good by one of the most marginalized groups: smallholder farmers residing in the Global South. Therefore, employing descriptive statistics and hierarchical cluster analysis, this paper presents an empirical definition of temptation goods provided by 277 smallholder farmers from rural Cambodia. Our findings partly differ from those found in the literature. For example, while farmers most frequently perceive alcohol, tobacco, and sweets as tempting, they also define unexpected items such as communication, recreation and entertainment, fruit, clothes, and going to the hairdresser as temptation goods. The results hold strong importance for accurate calculations and to understand the often puzzling spending behaviour of the poor, as well as coming up with custom-fit policy interventions that promote long-term welfare-increasing consumption behaviour.
Journal: Applied Economics
Pages: 1999-2012
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983147
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983147
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1999-2012




Template-Type: ReDIF-Article 1.0
Author-Name: Mahmoud Hassan
Author-X-Name-First: Mahmoud
Author-X-Name-Last: Hassan
Author-Name: Damien Rousselière
Author-X-Name-First: Damien
Author-X-Name-Last: Rousselière
Title: Does increasing environmental policy stringency lead to accelerated environmental innovation? A research note
Abstract: 
 This research note empirically investigates the effect of stringent environmental regulations on environmentally friendly technological innovation for 27 OECD countries from 1990 to 2015, using the two-step system-GMM estimation method for a linear dynamic panel data model. We further test the robustness of the empirical results by the method of correlated random effects for dynamic panel data estimated by Maximum Likelihood, the fixed effect with Driscoll–Kraay standard errors and the mixed-effect maximum-likelihood estimator. Overall, we find that increasing environmental policy stringency leads to accelerated environmental innovation. In addition, the non-market-based environmental policy instruments are found to stimulate more environmental innovation than market -based instruments. Thus, the instruments based on command and control policies are more effective than price mechanisms in inducing eco-innovation.
Journal: Applied Economics
Pages: 1989-1998
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983146
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983146
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1989-1998




Template-Type: ReDIF-Article 1.0
Author-Name: Gilberto Hanssen Androvandi
Author-X-Name-First: Gilberto Hanssen
Author-X-Name-Last: Androvandi
Author-Name: Carlos Enrique Carrasco-Gutierrez
Author-X-Name-First: Carlos Enrique
Author-X-Name-Last: Carrasco-Gutierrez
Author-Name: Benjamin Miranda Tabak
Author-X-Name-First: Benjamin Miranda
Author-X-Name-Last: Tabak
Title: Financial innovation and moral hazard: the case of time deposits with special guarantee
Abstract: 
 The macroprudential policy mechanism of Time Deposits with Special Guarantee (TDSG) was introduced in Brazil after the 2008 global financial crisis to prevent a liquidity shock in the banking sector. The TDSG is a form of deposit insurance established to avoid bank runs and protect depositors in the event of bankruptcy of financial institutions. In this paper, we study the impact of the TDSG policy on the moral hazard of small and medium-sized Brazilian banks based on data from 101 banks in the period 2007 to 2015. The empirical evaluation relies on difference-in-differences estimators with fixed effects. The results provide evidence validating the hypothesis of moral hazard associated with the TDSG policy.
Journal: Applied Economics
Pages: 1934-1944
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.2020712
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020712
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1934-1944




Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Clark
Author-X-Name-First: Jeremy
Author-X-Name-Last: Clark
Author-Name: John Spraggon
Author-X-Name-First: John
Author-X-Name-Last: Spraggon
Title: Increasing microfinance risk tolerance through revenue sharing: an experiment
Abstract: 
 Microfinance has been found to be less effective for high risk/return borrowing groups. We report a group liability microfinance lab experiment that tests a mechanism to raise repayment rates among such borrowers. The mechanism offers partial revenue sharing among groups of borrowers, agreed to before individual business outcomes are realized and loan repayment is due. Such revenue sharing makes loan repayment optimal under more outcome states, increasing the expected benefit to each borrower of repayment to qualify for future loans. We further test the effect of allowing borrowers to renege on revenue sharing agreements after learning their business outcomes, prior to loan repayment decisions. Our results illustrate the problem that exogenously higher risk/return borrowing groups achieve lower loan repayment rates than lower risk/return borrowing groups. We find evidence that optional revenue sharing significantly increases high risk borrowers’ repayment rates, but that most of this gain is lost if they can renege on revenue sharing agreements.
Journal: Applied Economics
Pages: 1912-1933
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983140
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983140
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1912-1933




Template-Type: ReDIF-Article 1.0
Author-Name: Jiali Fang
Author-X-Name-First: Jiali
Author-X-Name-Last: Fang
Author-Name: Wei Hao
Author-X-Name-First: Wei
Author-X-Name-Last: Hao
Author-Name: Udomsak Wongchoti
Author-X-Name-First: Udomsak
Author-X-Name-Last: Wongchoti
Title: Time-series momentum in individual stocks: is it there and where to look?
Abstract: 
 Time series momentum (TSMOM), which is found in various asset classes, offers investors several practical advantages over traditional cross-sectional momentum. However, recent studies raise questions about its general existence and urge researchers to extensively search for optimal combinations in time horizon, asset characteristics, and market conditions in which TSMOM may be profitable. With a comprehensive study covering 2.25 million monthly returns on over 20,000 US individual stocks from 1986 to 2017, we find that TSMOM profits are more prominent among stocks and during market states characterized by inferior information dissemination.
Journal: Applied Economics
Pages: 2048-2066
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983151
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983151
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2048-2066




Template-Type: ReDIF-Article 1.0
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Tatiana Sokolova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Sokolova
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Astonishing insights: emerging market debt spreads throughout the pandemic
Abstract: 
 We investigate how Covid-19 affects the emerging market (EM) bonds by analysing, on a standalone basis, investment grade (IG) and high yield (HY) debt per type of issuer. We document evidence that the option-adjusted spreads (OAS) of the IG and HY financials have recovered to the pre-Covid levels by the end of year 2020, while for the HY sovereigns and corporates the OAS remain twice as wide as before the pandemic. The weight of the liquidity component in the OAS for the IG sovereigns has climbed to astonishing 45%. Our results are potentially useful for investors, traders, risk managers and regulators.
Journal: Applied Economics
Pages: 2067-2076
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1984383
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1984383
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2067-2076




Template-Type: ReDIF-Article 1.0
Author-Name: Lifei Gao
Author-X-Name-First: Lifei
Author-X-Name-Last: Gao
Author-Name: Jing Guan
Author-X-Name-First: Jing
Author-X-Name-Last: Guan
Author-Name: Guojun Wang
Author-X-Name-First: Guojun
Author-X-Name-Last: Wang
Title: Does media-based health risk communication affect commercial health insurance demand? Evidence from China
Abstract: 
 In recent years, the mass media (such as TV shows and movies) plays an important role in communication with the general public. In this paper, we investigate the impact of a recent movie from China, ‘Dying to Survive’, on the demand for commercial health insurance. To explore this impact, a fixed-effect model and instrumental variable estimation are utilized, and the causal effect of movie-based health risk communication on commercial health insurance demand is studied. The result shows that the cumulative box office value of a movie has a significantly positive impact on the income from commercial health insurance premium, with a one- or two-day lag. This movie has encouraged viewers to purchase short-term commercial health insurance rather than long-term insurance. In addition, the heterogeneity of the impact exists for movie arrangement rate, average family size, urbanization rate, medical resource level, and per capita disposable income. The results show that sufficient health risk communication can improve the social ‘visibility’ of health risk.
Journal: Applied Economics
Pages: 2122-2134
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985071
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985071
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2122-2134




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Sánchez
Author-X-Name-First: Rafael
Author-X-Name-Last: Sánchez
Author-Name: Javier Finot
Author-X-Name-First: Javier
Author-X-Name-Last: Finot
Author-Name: Mauricio G. Villena
Author-X-Name-First: Mauricio G.
Author-X-Name-Last: Villena
Title: Gender wage gap and firm market power: evidence from Chile
Abstract: 
 The main aim of this work is to explain the Chilean gender wage gap using a dynamic monopsony model to estimate the labour supply elasticities at the firm level. Our results suggest that the elasticities of labour supply to firms are small, which implies that firms have labour market power. We also found that Chilean men would earn approximately 22% more than women as a result of the difference in labour supply elasticities by gender, ceteris paribus. Furthermore, we find that in the long run, the magnitude of between-firm differences in elasticities are higher than within-firm differences, which suggests that the gender wage gap is driven by structural factors that generate gender sorting to firms. Finally, since we use the same methodology and restrictions used in previous literatur for the US, we are able to empirically compare the elasticities for a high-income country (the US) are higher than those obtained for a middle-income country (Chile) for both men and women, which suggests higher labour market frictions in middle-income countries. The main difference between the US and Chile comes from the low labour supply elasticity of Chilean women, which appears to be explained from their low recruitment elasticity from non-employment.
Journal: Applied Economics
Pages: 2109-2121
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985070
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985070
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2109-2121




Template-Type: ReDIF-Article 1.0
Author-Name: William Jergins
Author-X-Name-First: William
Author-X-Name-Last: Jergins
Title: The effect of marijuana on labour market outcomes:evidence from medical marijuana laws
Abstract: 
 We use the staggered roll out of medical marijuana laws (MMLs) as a plausibly exogenous shock to individuals’ marijuana used to identify the effect of marijuana on labour-market outcomes. While our analysis largely confirms that MMLs do not affect labour market outcomes, we find two results that are not seen in the prior literature. We find that MMLs increase the probability that a 30–39 year-old woman is in the labour force, and decrease the time that unemployed 20–29 year-old men spend looking for a job. While both results are imprecisely estimated, they are generally robust to a large number of robustness checks we employ.
Journal: Applied Economics
Pages: 2077-2108
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985069
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985069
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2077-2108




Template-Type: ReDIF-Article 1.0
Author-Name: Faheem Aslam
Author-X-Name-First: Faheem
Author-X-Name-Last: Aslam
Author-Name: Khurrum S. Mughal
Author-X-Name-First: Khurrum S.
Author-X-Name-Last: Mughal
Author-Name: Saqib Aziz
Author-X-Name-First: Saqib
Author-X-Name-Last: Aziz
Author-Name: Muhammad Farooq Ahmad
Author-X-Name-First: Muhammad Farooq
Author-X-Name-Last: Ahmad
Author-Name: Dhoha Trabelsi
Author-X-Name-First: Dhoha
Author-X-Name-Last: Trabelsi
Title: COVID-19 pandemic and the dependence structure of global stock markets
Abstract: 
 In this paper, we examine the changes in the dependence structure of global stock markets amid the outbreak of COVID-19. We divide 56 stock markets into developed, emerging, and frontier markets and study their daily price data from 15 October 2019 to 17 August 2020 using the canonical vine (C-vine) copula approach. We observed significant changes in the dependence structure, the selection of the pair copula families, and the associated parameter estimates in the tree. In developed markets, during the COVID-19, the dependence of markets shifted from the Netherlands to France while the root node position of Hungary replaced the market of Poland. The frontier markets showed strong dependence signs with Mauritius before COVID-19 and Slovenia during the outbreak. Our findings are of interest to regulators and practitioners, particularly in monitoring the value at risk of portfolios and adopting appropriate strategies in light of the varying dynamics of stock markets during extreme events, such as COVID-19.
Journal: Applied Economics
Pages: 2013-2031
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983148
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983148
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2013-2031




Template-Type: ReDIF-Article 1.0
Author-Name: María Patricia Durango
Author-X-Name-First: María Patricia
Author-X-Name-Last: Durango
Author-Name: Juan Lara-Rubio
Author-X-Name-First: Juan
Author-X-Name-Last: Lara-Rubio
Author-Name: Andrés Navarro Galera
Author-X-Name-First: Andrés Navarro
Author-X-Name-Last: Galera
Author-Name: Antonio Blanco-Oliver
Author-X-Name-First: Antonio
Author-X-Name-Last: Blanco-Oliver
Title: The effects of pricing strategy on the efficiency and self-sustainability of microfinance institutions: a case study
Abstract: 
 To become financially self-sustainable, Microfinance Institutions (MFIs) trigger a schism in their management modes, thereby promoting efficiency and competitiveness. The increase of competition in the microfinance sector motivated by the entry of banks into this industry is another incentive for MFIs to implement advanced management systems. Pricing systems and credit-scoring models should contribute towards the efficiency of MFIs, thereby improving their competitiveness and self-sustainability in an increasingly constrained environment. However, to the best of our knowledge, no empirical evidence exists on the application of pricing strategies by MFIs. Therefore, this paper builds a microcredit-pricing system and determines the capital requirements inspired by the Basel III Internal-Rating Based (IRB) approach, which is underpinned by multilayer perceptron (MLP) credit-scoring. We find that the implementation of an IRB approach allows the analysed MFI to reduce its capital requirement and current interest rates by $200,000 and 30.12%, respectively. Moreover, this approach constitutes a relevant tool for the control of credit risk and the minimization of default losses. Consequently, the adoption of pricing and credit-scoring systems provides MFIs with a power management tool to compete against banks by reducing the interest rate, capital requirements, and credit losses, and therefore increases their financial self-sustainability.
Journal: Applied Economics
Pages: 2032-2047
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983149
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983149
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2032-2047




Template-Type: ReDIF-Article 1.0
Author-Name: El Mostafa Bentour
Author-X-Name-First: El Mostafa
Author-X-Name-Last: Bentour
Title: The effects of public debt accumulation and business cycle on government spending multipliers
Abstract: 
 We examine the impact of public debt changes as well as the effects of the business cycle on the expenditure multipliers. We adopt the structural vector autoregressive (SVAR) methodology on quarterly data for a sample of 18 OECD countries. The results show that expenditure multipliers are sensitive to the fiscal position, particularly the public debt changes as well as the business cycle. In particular, fiscal multipliers recorded high size in recessions than in expansions, in line with the recent findings about fiscal multipliers. Considering the public debt, leads to larger multipliers in debt accumulation under recessions than in debt accumulation under expansions.Many studies confirmed weak fiscal multipliers in expansions than in recessions, while others confirmed lower multipliers for countries with weak fiscal position. Our paper adds to this literature by joining the two effects of the business cycle and fiscal position, showing that fiscal position acts to lower multipliers when debt is rather accumulated in times of expansion than in recessions. We conclude that in times of expansion, the accumulated public debt effects are likely transmitting through Ricardian equivalence effect and concerns from expected high long-term interest rate leading to crowding-out effect, thus, lowering fiscal multipliers.
Journal: Applied Economics
Pages: 2231-2256
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985721
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985721
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2231-2256




Template-Type: ReDIF-Article 1.0
Author-Name: Suikai Gao
Author-X-Name-First: Suikai
Author-X-Name-Last: Gao
Author-Name: Guillaume Bagnarosa
Author-X-Name-First: Guillaume
Author-X-Name-Last: Bagnarosa
Author-Name: Michael Dowling
Author-X-Name-First: Michael
Author-X-Name-Last: Dowling
Author-Name: Roman Matkovskyy
Author-X-Name-First: Roman
Author-X-Name-Last: Matkovskyy
Author-Name: Dima Tawil
Author-X-Name-First: Dima
Author-X-Name-Last: Tawil
Title: Price transmission in European fish markets
Abstract: 
 We investigate price transmission in European fisheries markets. To start, we identify clusters of fish species both cross-regionally and within countries. A major issue in the clustering exercise is missing data due to reporting issues and seasonality in landed fish catches. To handle this we implement k-POD clustering which unlike traditional k-means clustering is able to account for missing data in clustering. Next, we move on to our primary goal of investigating price transmission through modelling price volatility spillovers. A missing value VAR framework is applied to identify directional spillovers among fish prices within clusters. We show that the directional volatility spillover effect is more prominent within each country for different species clusters than that for species cross-regionally. This suggests price transmission within localized markets for fish, rather than cross-regional markets for individual species. Although there are some neighbour country effects and some species that appear to be priced cross-regionally. Our study is the first to explore these multiple fish pricing dynamics, particularly taking account of the important issue of missing data which is a notable feature of fish pricing data.
Journal: Applied Economics
Pages: 2194-2213
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985075
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985075
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2194-2213




Template-Type: ReDIF-Article 1.0
Author-Name: Manisha Chakrabarty
Author-X-Name-First: Manisha
Author-X-Name-Last: Chakrabarty
Author-Name: Subhankar Mukherjee
Author-X-Name-First: Subhankar
Author-X-Name-Last: Mukherjee
Title: A pandemic and economic slowdown: the case of India
Abstract: 
 In this article, we use a novel dataset on new investment projects undertaken, available for states in India in quarterly frequency, to forecast economic activities in the wake of the ongoing Covid-19 pandemic. Panel data estimates for the country, employing fixed effect and Generalized Method of Moments, show a drop of approximately 50% in investment count during the financial years 2019–20 to 2021–22, compared to the counterfactual projection of an increase of 38% over the same period. State-level analysis reveals similar patterns, even though with considerable heterogeneity – relatively economically well-developed states may witness higher reduction in investment compared to the less developed ones. Given that incidence of Covid cases is also relatively higher in the more developed states, our findings can help in formulating policies appropriate for each state. This study can be generalized in the following three ways: it can be extended over a longer period of time, it can be applied in future crisis periods, and it can be made more precise given more granular data is available.
Journal: Applied Economics
Pages: 2214-2230
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985077
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985077
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2214-2230




Template-Type: ReDIF-Article 1.0
Author-Name: Julio López-Laborda
Author-X-Name-First: Julio
Author-X-Name-Last: López-Laborda
Author-Name: Guillermo Peña
Author-X-Name-First: Guillermo
Author-X-Name-Last: Peña
Title: Financial VAT may improve trade openness
Abstract: 
 This paper theoretically and empirically analyzes how the taxation of financial services under VAT (‘financial VAT’) influences trade openness. The empirical analysis uses data from the OECD and 36 European Union countries for the period 1960–2019. Dynamic panel data techniques are used, concretely the GMM System, and an unbalanced panel is handled. The results corroborate that financial VAT, and in particular the ‘option-to-tax’ method applied by some countries in the European Union, are positively associated with a country’s trade openness.
Journal: Applied Economics
Pages: 2148-2160
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985072
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985072
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2148-2160




Template-Type: ReDIF-Article 1.0
Author-Name: Eyup Dogan
Author-X-Name-First: Eyup
Author-X-Name-Last: Dogan
Author-Name: Mara Madaleno
Author-X-Name-First: Mara
Author-X-Name-Last: Madaleno
Author-Name: Dilvin Taskin
Author-X-Name-First: Dilvin
Author-X-Name-Last: Taskin
Title: Financial inclusion and poverty: evidence from Turkish household survey data
Abstract: 
 Even though poverty is highly felt in developing economies, the lack of relevant and complete micro-level data limits understanding which households are more exposed to poverty and the role of financial inclusion in poverty in these countries. This research analyzes the effects of financial inclusion proxied by a multidimensional index on three poverty measures (the lowest-income poverty line, a lower-middle-income line, and an upper-middle-income line) by employing the recent Turkish Household Budget and Consumption Expenditure Survey data with 11,595 complete answers. In addition to the application of logistic regressions, this study addresses possible endogeneity issues by using access to the nearest bank as an instrument in a two-stage least-squares regression and employing the novel method as a robustness check. Empirical results point out that an increase in financial inclusion decreases poverty in Turkey. The adverse effect of financial inclusion on poverty is validated through a few robustness and sensitivity analyses. The outcome also indicates that health expenditure and income are essential through which poverty is influenced by financial inclusion. Thus, policies are required to enhance the financial inclusion of households to alleviate poverty. Further discussions are presented in this study.
Journal: Applied Economics
Pages: 2135-2147
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985076
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985076
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2135-2147




Template-Type: ReDIF-Article 1.0
Author-Name: Yiling Chen
Author-X-Name-First: Yiling
Author-X-Name-Last: Chen
Author-Name: Guanju Chen
Author-X-Name-First: Guanju
Author-X-Name-Last: Chen
Title: Effectiveness of industrial policy in supporting innovation: the role of internal and external corporate governance mechanism
Abstract: 
 Focusing on supporting the new and high-tech industries, China’s high- and new-technology enterprise (HNTE) programme aims to stimulate the innovation and creativity of enterprises. Centering on China’s HNTE programme, this paper investigates the impact of industrial support policy on firm innovation, and further examines the boundary conditions of policy effectiveness from the perspective of corporate governance. The results show that industrial support policy can significantly promote firm innovation. Moreover, we find that internal governance (executive equity incentive) and external governance (product market competition) have a significant moderating effect on innovation support of industrial policy, and the role of executive equity incentive depends on the level of product market competition. And product market competition and executive equity incentive are complementary in influencing policy effectiveness only at low competition level. The tests of the boundary conditions of policy incentive effectiveness and the complementary relationship between internal and external governance hold interesting implication for research on innovation policy and corporate governance.
Journal: Applied Economics
Pages: 2181-2193
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985074
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985074
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2181-2193




Template-Type: ReDIF-Article 1.0
Author-Name: Liang Chen
Author-X-Name-First: Liang
Author-X-Name-Last: Chen
Author-Name: Wanli Li
Author-X-Name-First: Wanli
Author-X-Name-Last: Li
Author-Name: Kaibin Yuan
Author-X-Name-First: Kaibin
Author-X-Name-Last: Yuan
Author-Name: Xiaoqian Zhang
Author-X-Name-First: Xiaoqian
Author-X-Name-Last: Zhang
Title: Can informal environmental regulation promote industrial structure upgrading? Evidence from China
Abstract: 
 Using Chinese provincial data from 2000 to 2016, this paper investigates the effect of informal environmental regulation (IER) on industrial structure upgrading. We find that IER in the form of environmental media coverage acts as an external binding force and spurs the upgrading of industrial structure through increasing the dual pressure of local government supervision and public opinion. A mechanism test shows that IER can boost regional innovation, thereby promoting the upgrading of industrial structure. Moreover, the positive association between IER and industrial structure upgrading is more prominent in regions with stronger environmental law enforcement and higher public environmental awareness. We also document that IER has a significant informational spatial-diffusion effect and has characteristics of a double-threshold effect. Overall, our results highlight that it is necessary to establish a system for disclosing environmental information and to improve the mechanism whereby independent third parties such as the media participate in environmental governance.
Journal: Applied Economics
Pages: 2161-2180
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985073
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985073
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2161-2180




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyong Dai
Author-X-Name-First: Xiaoyong
Author-X-Name-Last: Dai
Author-Name: Gary Chapman
Author-X-Name-First: Gary
Author-X-Name-Last: Chapman
Author-Name: Hao Shen
Author-X-Name-First: Hao
Author-X-Name-Last: Shen
Title: Late-stage venture capital and firm performance: evidence from small and medium-sized enterprises in China
Abstract: 
 Where venture capitalists have traditionally focused on early-stage innovative firms, increasingly venture capitalists are investing in late-stage firms, especially in Asia. The performance consequences of this novel phenomenon of late-stage venture capital remain unexplored. This paper provides novel insight into this phenomenon by examining the impact of late-stage venture capital on two key dimensions of firm performance in the venture capital literature: innovation and financial performance. We link VC investment events to financial indicators of Chinese listed firms to account for the timing of VC entry and identify the firm performance impacts. Utilizing a matching and difference-in-differences procedure to account for selection biases, our results show that late-stage venture capital improves investee firms’ financial performance but reduces their innovation performance. Our findings advance understanding about the emergence of late-stage venture capital and its performance consequences, especially in emerging economies. Our work has implications for entrepreneurs and policymakers.
Journal: Applied Economics
Pages: 2356-2372
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1989370
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1989370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2356-2372




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Sang Hoon Kang
Author-X-Name-First: Sang Hoon
Author-X-Name-Last: Kang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Spillovers and portfolio optimization of precious metals and global/regional equity markets
Abstract: 
 We examine the spillovers and resource allocation characteristics of a portfolio of precious metal commodities and global/regional equity markets using a directional spillover index and portfolio optimization methods. Spillover index results show that the largest spillovers among precious metals occur between gold and silver and between zinc and lead. The largest spillovers of the world, Americas, Europe and Asia Pacific equity indices are on palladium and copper. Copper and zinc most largely spillover on the world and Americas equity indices. Copper and lead most largely spillover on the Europe equity index, while copper and silver most largely spillover on the Asia Pacific equity index. Portfolio optimization results indicate that nickel and lead add the most risk to total portfolio risk, whereas gold, platinum and aluminium add the least risk to the portfolio of commodities. Gold and aluminium are the precious metals most desirable for investment.
Journal: Applied Economics
Pages: 2320-2342
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1988889
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1988889
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2320-2342




Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Saving-investment correlations and the financial globalization of the BRICS countries
Abstract: 
 This study examines the long-run relationship between domestic saving and investment, and assesses the financial globalization of the BRICS economies. The model estimated in one-regime setting with no structural break and in sample-split setting with single as well as multiple structural breaks provides dominant support for the presence of long-run relationship between domestic saving and investment. The slope parameter of saving and implied home-bias in the asset portfolios of investors is generally small to medium for Brazil and large for Russia, India, China, and South Africa (RICS). The small to medium slope coefficient of saving for Brazil suggests the presence of moderate to high international mobility of capital. Financial markets are characterized by financial frictions and there is imperfect integration of RICS with the global financial markets. While the slope coefficient of saving is numerically large for RICS and small to medium for Brazil, it is not strictly identical across estimators. This finding can be generalized to mimic the findings of the extant literature. The academic debates and economic controversies – which surface in almost every area of empirical research – could be ascribed, inter alia, to the use of different methodologies and test statistics across studies.
Journal: Applied Economics
Pages: 2257-2274
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1912280
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912280
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2257-2274




Template-Type: ReDIF-Article 1.0
Author-Name: Sanjeev Gupta
Author-X-Name-First: Sanjeev
Author-X-Name-Last: Gupta
Author-Name: João Tovar Jalles
Author-X-Name-First: João Tovar
Author-X-Name-Last: Jalles
Title: Can COVID-19 induce governments to implement tax reforms in developing countries?
Abstract: 
 We estimate that the short- to medium-term fiscal impact of previous pandemics has been significant in 170 countries (including low-income countries) during the 2000–2018 period. The impact has varied, with pandemics affecting government expenditures more than revenues in advanced economies, while the converse applies to developing countries. Using a subset of 45 developing countries for which tax reform data are available, we find that past pandemics have propelled countries to implement tax reforms, particularly in corporate income taxes, excises and trade taxes. Pandemics do not drive revenue administration reforms.
Journal: Applied Economics
Pages: 2288-2301
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1987380
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1987380
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2288-2301




Template-Type: ReDIF-Article 1.0
Author-Name: Lei Pan
Author-X-Name-First: Lei
Author-X-Name-Last: Pan
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Title: International portfolio diversification possibilities: can BRICS become a destination for US investors?
Abstract: 
 This paper investigates the portfolio diversification possibilities between BRICS and the US stock market. Using bootstrap full-sample Granger causality and bootstrap rolling-window sub-sample Granger causality tests, we did not find evidence supporting the causal linkage between BRICS and the US stock markets; time-varying causality was observed for particular sub-samples. Our findings imply that BRICS stock markets can provide diversification possibilities for US investors most of the time; however, such opportunities become extremely limited during crisis periods. We also find that stock markets are more likely to be causally linked if they have similar business conditions, excess returns and size premiums.
Journal: Applied Economics
Pages: 2302-2319
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1988045
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1988045
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2302-2319




Template-Type: ReDIF-Article 1.0
Author-Name: Gang Dong
Author-X-Name-First: Gang
Author-X-Name-Last: Dong
Author-Name: Jin Li
Author-X-Name-First: Jin
Author-X-Name-Last: Li
Author-Name: Paul Tae-Woo Lee
Author-X-Name-First: Paul Tae-Woo
Author-X-Name-Last: Lee
Title: Vertical collusion in the shipping container transport chain over the deregulation tariff of port authority
Abstract: 
 This article investigates the impact of cost difference on vertical collusion between a container port and a liner from the perspective of a shipping container transport chain, taking the deregulation tariff of port authority into consideration. It develops a two-stage game model and then performs simultaneous and sequential games. A finding in this article is that the higher the cost difference between the two shipping container transport chains, the greater the possibility of vertical collusion between the container port and liner. Furthermore, the article found that in the case of an infinite repeated game, the stability of vertical collusion is not only subject to the cost difference but also affected by the terminal handling charge (THC) and collusive choice of counterpart.
Journal: Applied Economics
Pages: 2275-2287
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1987379
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1987379
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2275-2287




Template-Type: ReDIF-Article 1.0
Author-Name: Fousseini Traoré
Author-X-Name-First: Fousseini
Author-X-Name-Last: Traoré
Author-Name: Suwadu Sakho Jimbira
Author-X-Name-First: Suwadu Sakho
Author-X-Name-Last: Jimbira
Author-Name: Leysa Maty Sall
Author-X-Name-First: Leysa Maty
Author-X-Name-Last: Sall
Title: Nonlinear price transmission in the rice market in Senegal: a model-based recursive partitioning approach
Abstract: 
 This paper analyzes the nonlinear effects in price transmission from international markets to the local rice market of Dakar (Senegal) focusing on asymmetries through threshold effects. We use recent machine learning methods (model-based recursive partitioning trees) to detect asymmetries in the price transmission mechanism. Using a model based recursive partitioning algorithm, we identify a threshold and confirm the asymmetry in the price transmission. Local retail prices are more sensitive to world price increases than to declines. Only 11.80% of positive deviations (international prices go down) are eliminated at the end of the subsequent month, while 39.50% of negative deviations (world prices go up) are eliminated after one month. These results highlight the role of transaction costs and the market power of commercial intermediaries in price transmission in the sense that margins are corrected more rapidly when they are squeezed relative to their long run level than when they are stretched. Our results are confirmed by the traditional Threshold Autoregressive (TAR) model.
Journal: Applied Economics
Pages: 2343-2355
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1989369
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1989369
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2343-2355




Template-Type: ReDIF-Article 1.0
Author-Name: Chen Qihui
Author-X-Name-First: Chen
Author-X-Name-Last: Qihui
Title: Impacts of delayed school entry on child learning in rural northwestern China — forced delay versus voluntary delay
Abstract: 
 Most previous studies exploit the discontinuity in children’s school entry age around the enrolment cut-off to identify the effect of delayed school entry on child learning. However, the effect so identified is only relevant to children who were ‘forced’ to enter school late because of being born slightly after the enrolment cut-off. In developing countries, many children voluntarily start school late regardless of their birthdates, for whom the commonly-used discontinuity-based strategy fails to identify the effect relevant to their delayed enrolment. This study exploits community peer effects to estimate the impact of voluntary delay in school entry, using older peers’ school entry age to instrument one’s own school entry age. Analysing data on nearly 4,000 children from rural northwestern China, we found that while both types of delay in school entry raise the incidence of first-grade repetition, the effect of voluntary delay is much larger than that of forced delay. More specifically, one year of voluntary delay increases a child’s likelihood of first-grade retention by 12.4 percentage points, which is more than twice the effect of forced delay.
Journal: Applied Economics
Pages: 2453-2472
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990845
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990845
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2453-2472




Template-Type: ReDIF-Article 1.0
Author-Name: Shaen Corbet
Author-X-Name-First: Shaen
Author-X-Name-Last: Corbet
Author-Name: Yang (Greg) Hou
Author-X-Name-First: Yang (Greg)
Author-X-Name-Last: Hou
Author-Name: Yang Hu
Author-X-Name-First: Yang
Author-X-Name-Last: Hu
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Title: Financial contagion among COVID-19 concept-related stocks in China
Abstract: 
 This paper investigates, for the first time, the presence of financial contagion among several important Chinese coronavirus concept-based stock indices during the recent COVID-19 global pandemic. We utilize a regime-switching skew-normal (RSSN) methodology to test for contagion through the correlation and coskewness channels while considering structural breaks in the different moments. Our results present evidence of contagion effects, which are robust across identified crisis and non-crisis periods, including that of the Wuhan lockdown. Our empirical results offer investors and policy-makers an additional layer of information when evaluating response mechanisms to major crises through the use of concept-based indices.
Journal: Applied Economics
Pages: 2439-2452
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990844
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990844
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2439-2452




Template-Type: ReDIF-Article 1.0
Author-Name: Aslı Togan Eğrican
Author-X-Name-First: Aslı
Author-X-Name-Last: Togan Eğrican
Title: Shareholder coordination, investment horizon and hedge fund activism
Abstract: 
 I examine the role of institutional investors in hedge fund activists’ target selection. I argue that the coordination power and the investment horizon of institutional investors are important factors in explaining target selection. I find that hedge fund activism is higher in firms that institutional investors with long-term horizons invest as well as firms where coordination ability among existing shareholders is less pre-intervention. However, coordination ability increases after the intervention. Furthermore, hedge fund demands and success rates differ with the coordination ability and investment horizon of investors. Firms with investors that have long-term investment horizons and increased coordination ability are more likely to receive demands on board representation, value maximization and corporate governance improvements. Firm performance improvements are the most visible where institutional investors have a long horizon and where coordination among existing institutional investors increases. Overall, the results suggest that coordination ability and investment horizon of existing institutional shareholders are important factors in explaining target selection and strategies explored by hedge fund activists as well as their effects on firm value. The findings support the notion of coordination and collaborative monitoring role of long-term institutional investors with and hedge fund activists.
Journal: Applied Economics
Pages: 2390-2415
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990205
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990205
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2390-2415




Template-Type: ReDIF-Article 1.0
Author-Name: David Coady
Author-X-Name-First: David
Author-X-Name-Last: Coady
Author-Name: Devin D’Angelo
Author-X-Name-First: Devin
Author-X-Name-Last: D’Angelo
Author-Name: Brooks Evans
Author-X-Name-First: Brooks
Author-X-Name-Last: Evans
Title: Fiscal redistribution, social welfare and income inequality: ‘doing more’ or ‘more to do’?
Abstract: 
 This paper embeds the analysis of fiscal redistribution (FR) within the standard social welfare framework (SWF), which lends itself to a transparent and practical evaluation of the determinants of FR. Differences in FR are decomposed into differences in fiscal effort (the magnitude of redistributive transfers) and in fiscal progressivity (the distribution of net transfers across different income groups). Progressivity is further decomposed into targeting performance (the share of net transfers accruing to lower-income groups) and targeting returns (the social returns to targeting due to differences in the initial income inequality). This highlights the possibility that countries with the exact same redistributive effort (fiscal effort and targeting performance) can have very different levels of FR simply because they have very different levels of initial income inequality. High levels of FR in a country may therefore reflect that it has ‘more to do’ (high initial inequality) as opposed to it ‘doing more’. To illustrate, the paper decomposes differences in FR across 28 EU countries to isolate the importance of initial income inequality in explaining these differences. It also shows how the SWF can be straightforwardly used to test for the existence of the Paradox of Redistribution.
Journal: Applied Economics
Pages: 2416-2429
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990840
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990840
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2416-2429




Template-Type: ReDIF-Article 1.0
Author-Name: Xin Han
Author-X-Name-First: Xin
Author-X-Name-Last: Han
Author-Name: Yutao Han
Author-X-Name-First: Yutao
Author-X-Name-Last: Han
Author-Name: Xi Wan
Author-X-Name-First: Xi
Author-X-Name-Last: Wan
Title: Does revenue sharing reduce regional disparity?
Abstract: 
 This article investigates the role of tax revenue sharing on regional development disparity. We show that competition in taxes and infrastructure widens the development gap among jurisdictions under both simultaneous and sequential games. Particularly, the results suggest that the development disparity increases with the degree of tax sharing under sequential game. The reason is that the fiscal transfers received by the lagging jurisdiction overcompensate for the loss of capital outflow and thus discourage the lagging from investing in public infrastructure. However, revenue sharing has no effect on the development disparity when simultaneous game is considered.
Journal: Applied Economics
Pages: 2430-2438
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990843
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990843
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2430-2438




Template-Type: ReDIF-Article 1.0
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Author-Name: Rim Boussaada
Author-X-Name-First: Rim
Author-X-Name-Last: Boussaada
Author-Name: Majdi Karmani
Author-X-Name-First: Majdi
Author-X-Name-Last: Karmani
Title: Are financial inclusion and bank stability friends or enemies? Evidence from MENA banks
Abstract: 
 This study investigated the effect of financial inclusion on bank stability in the Middle East and North Africa (MENA) region. To achieve this goal, we used a sample of MENA banks for the 2004–2017 period, and we performed system-generalized method of moments (SGMM) as an empirical approach. Overall, the empirical findings indicate that greater financial inclusion significantly increases bank stability. As bank specifics, we found that bank stability is more sensitive to an increase in the non-performing loans (NPLs) ratio and bank size. However, a sufficient level of liquidity significantly increases bank stability. Finally, the results show that bank stability could benefit from a stable macroeconomic environment.
Journal: Applied Economics
Pages: 2473-2489
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1992342
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1992342
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2473-2489




Template-Type: ReDIF-Article 1.0
Author-Name: Karl-Friedrich Israel
Author-X-Name-First: Karl-Friedrich
Author-X-Name-Last: Israel
Author-Name: Tim Florian Sepp
Author-X-Name-First: Tim Florian
Author-X-Name-Last: Sepp
Author-Name: Nils Sonnenberg
Author-X-Name-First: Nils
Author-X-Name-Last: Sonnenberg
Title: Japanese monetary policy and household saving
Abstract: 
 This article analyzes the impact of monetary policy on household saving in Japan between 1993 and 2017. Using annual data from the Japan Panel Survey of Consumers it is shown that monetary expansion has contributed to a widening gap in households’ net saving through an adverse effect on the volume of saving of non-academic households. In contrast, households with at least one academic tend to be able to compensate these adverse effects of monetary expansion or can even benefit from it. The article documents how inequality in terms of the ability to build up wealth has increased in Japan over the past decades. The statistical analysis controls for household size as well as potential spatial effects in the transmission mechanism of monetary policy on household saving.
Journal: Applied Economics
Pages: 2373-2389
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1988890
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1988890
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2373-2389




Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: Richard Adjei Dwumfour
Author-X-Name-First: Richard Adjei
Author-X-Name-Last: Dwumfour
Author-Name: Salma Mefteh-Wali
Author-X-Name-First: Salma
Author-X-Name-Last: Mefteh-Wali
Title: Connectedness and directional spillovers in energy sectors: international evidence
Abstract: 
 This paper provides a comparative analysis of how the energy-sector stocks of 20 regional blocs (Americas, Australasia, BRIC, Southeast Asia, Scandinavia, Southern Europe, Far East, Europe, European Union, Emerging Europe, Asia, G7, G12, Economic and Monetary Union (EMU), CCARBNS, Latin America, North America, PIIGS, Asia-Pacific and NORCS) are connected from 5 July 1994 to 21 April 2020. It uses various techniques: Diebold and Yilmaz (2014)(DY 2014, hereafter) spillover indices and TVP-VAR, LASSO-VAR. Our main results are as follows: First, the DY approach results show that the biggest net contributor of volatility is the CCARBNS region, followed by the G12 and G7 regions, while the biggest receiver of volatility is the Southeast Asia region. Second, the TVP-VAR and LASSO-VAR results reveal that Scandinavia, Far East, and America’s regions are net receivers of energy shocks, with net transmitters being CCARBNS, G7, G12 and Emerging European regions. Third, during the 2007–2008 financial crisis and recent COVID-19 outbreak, energy stock market spillovers have reached unprecedented high levels. Fourth, the world policy uncertainty greatly influenced the magnitude of volatility spillovers across regional energy stock markets.
Journal: Applied Economics
Pages: 2554-2569
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998326
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998326
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2554-2569




Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Author-Name: Silvia Muzzioli
Author-X-Name-First: Silvia
Author-X-Name-Last: Muzzioli
Title: The power of deterministic option-implied trees in pricing European options
Abstract: 
 The aims of the current article are threefold. First, to investigate the power of deterministic option-implied trees, constructed either by forward or by backward induction, in pricing European options, in order to assess the proper representation of the smile. Second, to investigate and contrast the power of deterministic option-implied trees during tranquil and volatile market conditions. Last, to assess the correctness of the representation of the smile in different parts of the risk-neutral distribution. Three main results are obtained. First, the pricing performance of the Enhanced Derman and Kani model (EDK), based on forward induction, is superior to that of the Rubinstein model, based on backward induction. Second, the EDK model produces better results (smaller errors) on the left tail of the distribution, i.e. it is better in pricing out-of-the-money put options. Third, it performs better in turmoil periods where correct pricing a challenge, and accuracy is of greater importance than in tranquil periods. Diebold and Mariano test of equal predictive accuracy confirms the superiority of the EDK model in both sub-periods.
Journal: Applied Economics
Pages: 2596-2609
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998330
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998330
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2596-2609




Template-Type: ReDIF-Article 1.0
Author-Name: Jianchun Fang
Author-X-Name-First: Jianchun
Author-X-Name-Last: Fang
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Author-Name: Chi Keung Marco Lau
Author-X-Name-First: Chi Keung Marco
Author-X-Name-Last: Lau
Author-Name: Neelu Seetaram
Author-X-Name-First: Neelu
Author-X-Name-Last: Seetaram
Title: Does policy uncertainty affect economic globalization? An empirical investigation
Abstract: 
 This paper investigates the role of policy uncertainty on indices of economic globalization from 1996 to 2016 in the panel dataset of 142 countries. For this purpose, we use the nine measures of the Revisited KOF Economic Globalization Indices and two new measures of uncertainty: The World Uncertainty Index (WUI) and the Trade Policy Uncertainty Index (TPUI). The findings indicate that both the WUI and the TPUI are negatively associated with the overall index of economic globalization. The benchmark results remain consistent under various model specifications, econometric estimation techniques, and countries at different income levels.
Journal: Applied Economics
Pages: 2510-2528
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998324
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998324
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2510-2528




Template-Type: ReDIF-Article 1.0
Author-Name: Qin Zhou
Author-X-Name-First: Qin
Author-X-Name-Last: Zhou
Author-Name: Qing He
Author-X-Name-First: Qing
Author-X-Name-Last: He
Author-Name: Karen Eggleston
Author-X-Name-First: Karen
Author-X-Name-Last: Eggleston
Author-Name: Gordon G Liu
Author-X-Name-First: Gordon G
Author-X-Name-Last: Liu
Title: Urban-rural health insurance integration in china: impact on health care utilization, financial risk protection, and health status
Abstract: 
 China has been making efforts to establish a universal health care coverage system through multiple social health insurance schemes. As these insurance schemes cover different populations with different financing and reimbursement levels, large disparities remain in health care access and health outcomes among people covered. The government has launched an urban-rural integration policy for social health insurance to reduce disparities in access and health outcomes. We adopt a difference-in-differences propensity score matching approach to estimate the effects of this integration policy on health care utilization, financial risk protection, and health status, using nationally representative Chinese household survey data. The results show that the integration policy has significantly improved financial risk protection and self-assessed health of rural residents in China, which could be attributed to a decline in out-of-pocket payment. The low-income rural residents benefit most from this policy. There is no evidence that it has pronounced effects among urban residents. Greater efforts to increase reimbursement rates and to expand beneficiary populations could help to mitigate remaining urban-rural disparities. The findings in this study would contribute to a better understanding of the impacts of health insurance expansion in low- and middle-income countries. JEL code: I18, I10
Journal: Applied Economics
Pages: 2491-2509
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998323
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998323
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2491-2509




Template-Type: ReDIF-Article 1.0
Author-Name: Haileslasie Tadele
Author-X-Name-First: Haileslasie
Author-X-Name-Last: Tadele
Author-Name: Xinfeng Ruan
Author-X-Name-First: Xinfeng
Author-X-Name-Last: Ruan
Author-Name: Weihan Li
Author-X-Name-First: Weihan
Author-X-Name-Last: Li
Title: Corporate governance and firm-level jump and volatility risks
Abstract: 
 Corporate governance plays a significant role in monitoring managerial behaviour, and thus in reducing firm-level risks and increasing firm value. Using a global unbalanced panel of 6,241 firm-year observations over the period of 1996–2016, we investigate the impact of internal and external governance attributes on firm risk. We address the endogeneity problem inherent in governance studies using option-based risk measures for jump and volatility risks. We use a multiple theoretical perspective to explain the relationship between governance mechanisms and firm risk. Our results indicate that board structure and entrenchment factors have a differential impact on firms’ jump and volatility risks. Our evidence reveals that firms with higher entrenchment provisions tend to increase volatility risk and that a higher proportion of outside directors increases firms’ volatility risk. Board size and CEO salary reduce volatility risk yet increase jump risk. We also find that the proportion of outside directors is negatively associated with firms’ jump risk. Overall, our results reveal interesting evidence and provide implications for future governance studies.
Journal: Applied Economics
Pages: 2529-2553
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998325
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998325
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2529-2553




Template-Type: ReDIF-Article 1.0
Author-Name: Michel Verlaine
Author-X-Name-First: Michel
Author-X-Name-Last: Verlaine
Title: On the extraction of cyber risks from structured products
Abstract: 
 The aim of this paper is to develop an approach to extract information about cyber risks from structured financial products. We consider decision makers that are interested in extracting information about the uncertainty of Cyber risks. The value of information can be evaluated using recently developed entropy approaches in Finance. The underlying idea is that what we call Arrow-Debreu Cyber Risk state prices can be extracted, provided the right structured products be ‘created’. It is shown that different market-based approaches can be used to get a better idea of the shape of the loss distribution facing firms. This information is potentially of interest to evaluate the risk premiums of insurance products. Comparisons between extracted market expectations can also be informative for risk evaluation, notably the distribution of unexpected losses and the eventual shortfall calculations. Finally, recent information-theoretic approaches enable us to make the link between pricing and the value of information to investors.
Journal: Applied Economics
Pages: 2570-2581
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998327
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998327
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2570-2581




Template-Type: ReDIF-Article 1.0
Author-Name: Mariana Hatmanu
Author-X-Name-First: Mariana
Author-X-Name-Last: Hatmanu
Author-Name: Cristina Cautisanu
Author-X-Name-First: Cristina
Author-X-Name-Last: Cautisanu
Author-Name: Andreea Oana Iacobuta
Author-X-Name-First: Andreea Oana
Author-X-Name-Last: Iacobuta
Title: On the relationships between CO2 emissions and their determinants in Romania and Bulgaria. An ARDL approach
Abstract: 
 Given the current context, with phenomena such as dramatic climate change, water, air, soil pollution, etc., the complex relation between environmental degradation and economic growth is intensely debated in the academia as well as in worldwide politics. This study examines the relationship between carbon dioxide emissions, gross domestic product, energy consumption, and urbanization rate in Romania and Bulgaria over 1980–2019 period. For this purpose, we have applied the ARDL bounds testing approach and, to validate the robustness of the results, we have used the VEC Granger model. The results showed that there are long term relationships between CO2 emissions per capita and the determinant factors taken into account in both countries; however, while the inverted N-shape of EKC is significant in the case of Bulgaria, this does not happen in the case of Romania although the model which includes the inverted U-shape of EKC is significant for both countries. Considering the fact that both Romania and Bulgaria are emerging economies which, despite having made significant progress, are still in search of a path towards sustainable development, such a study may constitute a good starting point and may suggest some action directions in terms of sustainable development policies.
Journal: Applied Economics
Pages: 2582-2595
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998328
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998328
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2582-2595




Template-Type: ReDIF-Article 1.0
Author-Name: Miramir Bagirov
Author-X-Name-First: Miramir
Author-X-Name-Last: Bagirov
Author-Name: Cesario Mateus
Author-X-Name-First: Cesario
Author-X-Name-Last: Mateus
Title: Petroleum prices and equity sector returns in petroleum exporting and importing countries: an analysis of volatility transmissions and hedging
Abstract: 
 This paper examines the direction and magnitude of volatility transmissions between prices of petroleum and stock sector indices of the net petroleum exporter, Mexico, and the net petroleum importer, the United Kingdom. The sector indices are self-constructed utilizing daily data of 258 unique stocks listed in eight sectors from January 2005 to September 2018 that permits implementing the same methodological framework across two markets. The study applies the VAR-GARCH model that enables to study bidirectional spillover effects. The results provide evidence of volatility spillovers between petroleum prices and sector indices. The effects are more apparent in the case of the net exporter, where the bidirectional volatility transmissions were observed. The computed optimal portfolio weights and hedge ratios considerably vary among sectors of both countries. The findings emphasize the crucial role of comprehending the heterogeneity of sectors for the management of investment portfolios.
Journal: Applied Economics
Pages: 2610-2626
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990846
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990846
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2610-2626




Template-Type: ReDIF-Article 1.0
Author-Name: Guangshun Qiao
Author-X-Name-First: Guangshun
Author-X-Name-Last: Qiao
Author-Name: Shirong Zhao
Author-X-Name-First: Shirong
Author-X-Name-Last: Zhao
Title: Tradeoffs between economies of scale and specialization in efficiency for the global semiconductor industry
Abstract: 
 This paper combines the semiparametric modified ordinary least-squares approach by Simar et al. (2017) with the nonparametric shape constraint regression approach by Du et al. (2013) to evaluate the performance in the semiconductor industry. Using panel data on 470 companies in the global semiconductor industry over 1999–2018, we compare technical eficiencies between the integrated device manufacturer business model and the fabless-foundry business model. The performance differences between the vertically integrated device manufacturers and the vertically specialized fabless and foundry firms are disentangled by the intensity of labour and capital in a very flexible form. The estimation results indicate that the capital-intensive integrated device manufacturers taking advantage of the economies of scale are operating more efficiently than the niche fabless companies in the global semiconductor industry.
Journal: Applied Economics
Pages: 2678-2693
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1994126
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994126
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2678-2693




Template-Type: ReDIF-Article 1.0
Author-Name: Zhixin Zeng
Author-X-Name-First: Zhixin
Author-X-Name-Last: Zeng
Author-Name: Long Zhao
Author-X-Name-First: Long
Author-X-Name-Last: Zhao
Author-Name: Xiaojun Wang
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Wang
Title: Does improved transportation promote innovation? evidence from China’s cities
Abstract: 
 This paper empirically investigates the effect of improved transportation system on innovation activities in a panel of Chinese cities. We find robust evidence that there is a significant increase in a city’s capacity in invention patents due to the opening of the high-speed railway (HSR). Furthermore, increased expenditure in research and development (R&D), expanded business opportunities through trade and foreign direct investment, and intensified import competition are three plausible channels that allow the opening of HSR to spur city innovation.
Journal: Applied Economics
Pages: 2643-2657
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1992344
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1992344
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2643-2657




Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Ching Tseng
Author-X-Name-First: Yung-Ching
Author-X-Name-Last: Tseng
Author-Name: I-Fan Hsiao
Author-X-Name-First: I-Fan
Author-X-Name-Last: Hsiao
Title: Decomposing the factors influencing household debt: the case of China
Abstract: 
 This study discusses the issue of household debt in China based on the data of China household finance survey completed in 2015. The quantile regression model is adopted as the key research method, and the conclusions are derived are as follows. The increase in household debt in China is significantly correlated with several financial factors, including household assets and income, as well as the socioeconomic factors of education, age and working unit, in addition to senses of security and happiness. The assets of highly indebted households influence their debt in a positive way; the influence of income on household debt decreases as the quantile increases; the householder age has a negative effect across all household quantiles, and the debt holdings are less at older ages. The influence of household educational background dramatically increases from negative to positive following the indebtedness level, suggesting that enormous debt burdens may be generated from the cross effect of disadvantages in income and educational background. By decomposing the results of the quantile regression estimations, the evidence suggests that sufficient financial knowledge is essential in avoiding the financial distress from household debt.
Journal: Applied Economics
Pages: 2627-2642
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1992343
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1992343
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2627-2642




Template-Type: ReDIF-Article 1.0
Author-Name: Maroula Khraiche
Author-X-Name-First: Maroula
Author-X-Name-Last: Khraiche
Author-Name: Levent Kutlu
Author-X-Name-First: Levent
Author-X-Name-Last: Kutlu
Author-Name: Xi Mao
Author-X-Name-First: Xi
Author-X-Name-Last: Mao
Title: Energy efficiencies of European countries
Abstract: 
 Improving energy efficiency is essential for sustainable development; therefore, an accurate assessment of energy efficiency is needed to inform policymakers on how to set energy efficiency goals. Using a stochastic frontier model, we estimate energy efficiencies of 44 countries in Europe from 1990 to 2015. Comparing average energy efficiencies across countries among three time periods, 1990 to 1998, 1999 to 2007, and 2008 to 2015, we find the following trends: (1) countries with highest energy efficiency cluster geographically suggesting spillover effects; (2) from the first period to the second period, 67.44% of European countries’ average energy efficiency increased, while only 59.09% of European countries’ average energy efficiencies increased between the first and the third period; (3) gains in energy efficiency may be levelling off or decreasing over time; and (4) when countries face economic downturn, they experience a decrease in energy efficiency signalling possible future decreases in energy efficiency in light of the recent recessions caused by the Covid-19 pandemic. Finally, we compute potential energy savings from a counterfactual experiment in which countries realize full efficiency. The results show substantial energy savings can be obtained by Russia in particular, and less savings can be obtained by countries with smaller populations.
Journal: Applied Economics
Pages: 2694-2706
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1994520
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994520
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2694-2706




Template-Type: ReDIF-Article 1.0
Author-Name: Sadick Mohammed
Author-X-Name-First: Sadick
Author-X-Name-Last: Mohammed
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Do ICT based extension services improve technology adoption and welfare? Empirical evidence from Ghana
Abstract: 
 This paper examines the impact of ICT-based extension services on farmers’ adoption of a new agricultural technology (Bradyrhizobium inoculant), knowledge gain on the new technology, yields and net returns, using recent survey data of 600 soybean farmers from Ghana. We employ a copula functions approach to account for potential selection bias and endogeneity. Standard selectivity correction models often employed in the literature rely on multivariate normality (MVN) assumption, which is easily violated, especially when there is tail dependence in the distribution of the observed data, thus making the distribution non-normal. The copula functions approach allows the modelling of selectivity based on multivariate non-normality to account for this deficit in the data, but retains the MVN as a special case. Our empirical findings reveal that farmers who participated in ICT-based extension obtained 205% knowledge scores, 151% yields and 88% farm net returns, compared to 174% knowledge scores, 148% yields and 86% farm net returns for conventional extension participants. The current study provides evidence that employing ICT-based extension delivery to farmers can help in accelerating progress towards the achievement of the Sustainable Development Goals, particularly goals two and five, which seek to achieve zero hunger and equalaccess to extension services.
Journal: Applied Economics
Pages: 2707-2726
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998334
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998334
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2707-2726




Template-Type: ReDIF-Article 1.0
Author-Name: Thi Thu Ha Nguyen
Author-X-Name-First: Thi Thu Ha
Author-X-Name-Last: Nguyen
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Iqbal Syed
Author-X-Name-First: Iqbal
Author-X-Name-Last: Syed
Title: Direct real estate, securitized real estate, and equity market dynamic connectedness
Abstract: 
 The paper’s objective is to scrutinize the dynamics of connectedness across returns of three markets, including direct real estate, securitized real estate, and stock markets. Through the connectedness index approach, the results indicate a significant degree of connectedness, which increases sharply during the recent global financial crisis. The net directional connectedness is volatile and time-dependent, yet the dominant shock transmitting role of the securitized real estate is pronounced during the GFC. While the direct real estate market plays as a dominant shock information receiver from the markets of securitized real estate and stocks in Australia, Canada, France, and the UK, it appears to shape other markets in the context of the US. Given the fact that the securitized real state is considered as the hybrid of the conventional real estate market and the stock market, we further note that the securitized real estate is more linked with its underlying market. Several implications for investors and policymakers are discussed.
Journal: Applied Economics
Pages: 2658-2677
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1994125
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994125
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2658-2677




Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Hong Choi
Author-X-Name-First: Ki-Hong
Author-X-Name-Last: Choi
Author-Name: Sang Hoon Kang
Author-X-Name-First: Sang Hoon
Author-X-Name-Last: Kang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Herding behaviour in Korea’s cryptocurrency market
Abstract: 
 Herding behaviour is an interesting phenomenon that has a serious impact on the market, leading to inefficient asset prices and high volatility in periods of market turmoil. We analysed the existence of herding behaviour in the cryptocurrency market using hourly price data of eight major cryptocurrencies and the cross-sectional standard absolute deviation (CSAD) approach. Our findings showed anti-herding behaviour at shorter time intervals and herding behaviour during longer periods. The trading decisions of cryptocurrency investors mimic the behaviour of other traders over time. We further found that herding behaviour is stronger over longer time intervals in a down market. When a market is declining, it suggests that fear increases and investors are forced to act quickly in response to market movements rather than using their information. Thus, investors need to fix the situation as quickly as possible to avoid making losses, hence they need to make rational choices based on knowledge rather than emotion or fear.
Journal: Applied Economics
Pages: 2795-2809
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998335
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998335
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2795-2809




Template-Type: ReDIF-Article 1.0
Author-Name: Yıldız Özkök
Author-X-Name-First: Yıldız
Author-X-Name-Last: Özkök
Author-Name: İbrahim Çütcü
Author-X-Name-First: İbrahim
Author-X-Name-Last: Çütcü
Title: Does fiscal federalism matter for economic growth? Evidence from the United States
Abstract: 
 Fiscal federalism can improve macroeconomic performance by increasing the efficiency and performance of the public sector. The aim of this study is to analyse the long-term relationship between fiscal federalism and economic growth during the period of 1961–2018 in the United States. In this analysis, first of all, the Hatemi-J Co-integration test was used to determine the long-term relationship between the variables, and accordingly it was determined that there is a long-term relationship between the variables at the 1% significance level. Then, the causality relationship between variables was tested using Hacker–Hatemi-J bootstrap causality analysis and no causality relationship was found among the variables. Finally, a time-varying causality test was applied, since the causality relationship between variables may lose its validity at some time points, especially in global economies. It was found that there is a causality relationship between variables when sub-periods are considered.
Journal: Applied Economics
Pages: 2810-2824
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998337
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998337
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2810-2824




Template-Type: ReDIF-Article 1.0
Author-Name: Insook Lee
Author-X-Name-First: Insook
Author-X-Name-Last: Lee
Title: Conditional effect of government debt on household debt
Abstract: 
 How does government debt affect household debt? Capitalizing on a model of life-cycle economy populated by households with no bequest motive, this article shows that effect of government debt on aggregate household debt is conditional. If residence-service benefit of house is greater than equity-accrual benefit of house investment, government debt negatively affects household debt. If not, government debt positively affects household debt. This theoretical finding is tested with panel data of 53 countries over 1991–2019. Using system Generalized Method of Moments finds supportive evidence for the conditional effect, which remains robust after adopting external instrumental variable and alternative approach to expectation formation.
Journal: Applied Economics
Pages: 2759-2777
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998332
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998332
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2759-2777




Template-Type: ReDIF-Article 1.0
Author-Name: Saqib Aziz
Author-X-Name-First: Saqib
Author-X-Name-Last: Aziz
Author-Name: Akanksha Jalan
Author-X-Name-First: Akanksha
Author-X-Name-Last: Jalan
Author-Name: Roman Matkovskyy
Author-X-Name-First: Roman
Author-X-Name-Last: Matkovskyy
Author-Name: Taoufik Bouraoui
Author-X-Name-First: Taoufik
Author-X-Name-Last: Bouraoui
Title: Does Shariah compliance affect investor behaviour in the COVID-19 times: evidence from herding in the global energy market
Abstract: 
 This paper investigates whether the Shariah compliance matters in determining investor behaviour in herding across firms in the global energy market. Our sample comprises 2501 globally listed energy equities from 10 April 2019 to 8 April 2020 from the Refinitv Eikon database, which also flags firms as compliant or otherwise with Shariah or Islamic law. Using closing price data for the selected firms, we analyse herding behaviour across the two groups, in addition to various firm and market characteristics such as size, profitability, analyst recommendations about future performance and up and down market days. Our results suggest herding in both Shariah and non-Shariah-compliant energy firms, and on down market days in particular. Cross-sectional tests indicate higher herding in larger and more-profitable Shariah firms, and those with positive analyst forecasts for the future, which is consistent with pressure-driven behaviour to maintain performance. In particular, we find that the COVID-19 pandemic does not significantly alter herding behaviour for the sample firms.
Journal: Applied Economics
Pages: 2825-2836
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999384
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999384
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2825-2836




Template-Type: ReDIF-Article 1.0
Author-Name: Laiqun Jin
Author-X-Name-First: Laiqun
Author-X-Name-Last: Jin
Author-Name: Xiuyan Liu
Author-X-Name-First: Xiuyan
Author-X-Name-Last: Liu
Author-Name: Sam Hak Kan Tang
Author-X-Name-First: Sam Hak Kan
Author-X-Name-Last: Tang
Title: High-technology zones, misallocation of resources among cities and aggregate productivity: evidence from China
Abstract: 
 Recent literature has been debating the performance of high-technology zones (HTZs) in developing countries. This paper contributes to this debate by examining how national HTZs in China affect allocative efficiency of resources among Chinese cities as well as China’s total factor productivity (TFP) growth. This paper finds that resource misallocation among cities reduces China’s TFP growth by 4.5% of which capital misallocation accounts for 2.4% and labour misallocation accounts for 2.1%. Moreover, we find that the establishment of national HTZs in China increases aggregate TFP by improving the allocative efficiency of capital among cities: that is, redistributing more capital from lower to higher productivity cities. In contrast, we find little evidence of TFP gain driven by technical efficiency following the establishment of HTZs. This paper thus reveals a potential positive effect of establishing HTZs in developing countries: although establishing HTZs may not improve the technical efficiency of these countries, it may nevertheless mitigate these countries’ resource misallocation and enhance their aggregate TFP.
Journal: Applied Economics
Pages: 2778-2794
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998333
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998333
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2778-2794




Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yi Li
Author-X-Name-First: Yong-Yi
Author-X-Name-Last: Li
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Title: Does CFO serving as board secretary matter for information disclosure? Evidence from China’s listed companies
Abstract: 
 This paper explores whether duality in the chief financial officer’s (CFO’s) job role (i.e. also serving as board secretary) reduces information asymmetry through higher levels of information transparency, focusing on Chinese publicly listed companies from 2001 to 2018. Our findings reveal that CFOs serving as board secretaries contribute to greater information transparency. The positive effect of CFO duality on information transparency appears to be more pronounced in state-owned enterprises (SOEs) and in firms whose CFO is female and have had a longer tenure. Knowledge of these impacts is critical to building appropriate investment strategies.
Journal: Applied Economics
Pages: 2737-2758
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1996531
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1996531
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2737-2758




Template-Type: ReDIF-Article 1.0
Author-Name: Jinyang Cai
Author-X-Name-First: Jinyang
Author-X-Name-Last: Cai
Author-Name: Ruifa Hu
Author-X-Name-First: Ruifa
Author-X-Name-Last: Hu
Author-Name: Yu Hong
Author-X-Name-First: Yu
Author-X-Name-Last: Hong
Title: Impact of farmer field schools on agricultural technology extension—evidence from greenhouse vegetable farms in China
Abstract: 
 Agricultural extension is a key instrument to bridge the gap between new technologies and farmers. As a popular extension approach, farmer field schools (FFS) usually improve farmers’ knowledge and crop productivity. This study aims to quantify the heterogeneous impact of FFS on the cognition and adoption of multiple new agricultural technologies. In this study, we apply Tobit models to estimate the impact of FFS on technology extension regarding farmers’ cognition and adoption rates of different technologies, using data collected for 274 tomato and cucumber farm households in Beijing, China. We find that the FFS programmesignificantly increased farmers’ cognition and adoption of new agricultural technologies. We also find that the effects of FFS on extension vary in different categories of new technology. Particularly, we find that the extension of facility technologies is difficult, and new varieties are easy to disseminate but difficult to adopt by farmers. We conclude that FFS is an important channel for the extension of new agricultural technologies. At the same time, attention should be paid to the design of the FFS programme, adjusting to the attribute of different technologies.
Journal: Applied Economics
Pages: 2727-2736
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1996530
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1996530
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2727-2736




Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Filippini
Author-X-Name-First: Massimo
Author-X-Name-Last: Filippini
Author-Name: Giuliano Masiero
Author-X-Name-First: Giuliano
Author-X-Name-Last: Masiero
Author-Name: Michael Santarossa
Author-X-Name-First: Michael
Author-X-Name-Last: Santarossa
Title: Productivity change and efficiency in the Swiss nursing home industry
Abstract: 
 Enhancing nursing home efficiency and productivity is a challenging task for health policy makers due to population ageing trends and increasing healthcare costs. In this study, we analyse nursing home efficiency and productivity using data from the universe of Swiss nursing homes for the period 2007–2015. We estimate a translog cost frontier via generalized true random effects models, which allow to disentangle the transient and the persistent components of inefficiency. In particular, we apply the simulated maximum likelihood approach proposed recently by scholars and then improve our estimates with a Mundlak correction. We find that total factor productivity change has dropped in recent years, and both efficiency components show scope for improvement. However, the marginal gains from transient efficiency measures are potentially larger, and could provide a more valid contribution to reverse the decreasing trend in total factor productivity change.
Journal: Applied Economics
Pages: 2837-2850
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1962511
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962511
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2837-2850




Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Khang
Author-X-Name-First: Kenneth
Author-X-Name-Last: Khang
Author-Name: Thomas W. Miller
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Miller
Title: Mutual fund performance components: an application to asset allocation mutual funds
Abstract: 
 While most of the mutual fund performance literature focuses on returns only, a recent strand examines the activity level of portfolio managers and how this activity affects portfolio performance. We add to this literature in two ways. First, we examine asset allocation mutual funds, noting there are few studies examining this type of fund. We note our method of examination can be modified for any type of fund. Second, we use a weight-based method that separates fund performance into components, one of which provides a new measure of manager activity. Because this new measure is a component of fund performance, the effect of manager activity on performance is explicit. While we find the average fund does not beat a lagged-weight benchmark, we do find the components explain performance differences among funds. We also find evidence that manager activity persists, meaning funds exhibiting greater activity in the past tend to do so in the future. This is important because it predicts which funds are likely to have more extreme performance in the future. Finally, we find evidence of persistence in predictive skill, but find that skill is not strong enough to produce persistence in fund performance.
Journal: Applied Economics
Pages: 2933-2948
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.2000583
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2000583
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2933-2948




Template-Type: ReDIF-Article 1.0
Author-Name: Linlin Sun
Author-X-Name-First: Linlin
Author-X-Name-Last: Sun
Author-Name: Yuefei Yang
Author-X-Name-First: Yuefei
Author-X-Name-Last: Yang
Author-Name: Jue Wang
Author-X-Name-First: Jue
Author-X-Name-Last: Wang
Author-Name: Yunyun Jiang
Author-X-Name-First: Yunyun
Author-X-Name-Last: Jiang
Title: Macroeconomic impacts and transmission channels of an epidemic shock: evidence from the economic performance of China during the 2003 SARS epidemic
Abstract: 
 This paper uses the 2003 severe acute respiratory syndrome (SARS) epidemic as a quasi-experiment to study the economic impact of epidemic shocks. It aims to answer the following two questions. 1) How does an epidemic affect various macroeconomic variable? 2) What are the transmission channels through which the epidemic shock affected firms? We build an epidemic shock macroeconomic model and use synthetic control method (SCM) and difference-in-differences (DID) estimator to estimate the impact of the 2003 SARS epidemic on the economic performance of China. We find that the SARS epidemic negatively affected China’s GDP growth rates and its levels of consumption, investment, and productivity. The lag time effect of SARS was very short because of the short duration of the outbreak and adequate market liquidity. We isolate and compare the effects of the SARS epidemic from the perspectives of changes in business cycles, labour supply shocks and external financing conditions on firms’ economic performance using firm-specific sensitivity estimates prior to the SARS epidemic. We find that the SARS epidemic had a larger negative impact on firms with higher sensitivity to business cycles and labour supply shocks.
Journal: Applied Economics
Pages: 2851-2873
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999385
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999385
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2851-2873




Template-Type: ReDIF-Article 1.0
Author-Name: Felicity Addo
Author-X-Name-First: Felicity
Author-X-Name-Last: Addo
Author-Name: Klaus Salhofer
Author-X-Name-First: Klaus
Author-X-Name-Last: Salhofer
Title: Transient and persistent technical efficiency and its determinants: the case of crop farms in Austria
Abstract: 
 We analyse persistent and transient technical efficiency of crop farms in Austria from 2003 to 2017 by estimating the four-component stochastic frontier model using a multi-step procedure and extend it to account for heterogeneity bias by introducing the Mundlak adjustments. Moreover, we examine the determinants of both transient and persistent technical inefficiency. Results show that farms with favourable natural conditions, a higher share of family labour, and a lower share of owned land are more persistently efficient. Farm specialization, size, and farmers’ age are positively associated with transient efficiency, while subsidies have adverse impacts. Significant technological progress coupled with, on average decreasing technical efficiency indicates a diverging sector.
Journal: Applied Economics
Pages: 2916-2932
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.2000580
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2000580
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2916-2932




Template-Type: ReDIF-Article 1.0
Author-Name: Nélida Díaz Sobrino
Author-X-Name-First: Nélida
Author-X-Name-Last: Díaz Sobrino
Author-Name: Corinna Ghirelli
Author-X-Name-First: Corinna
Author-X-Name-Last: Ghirelli
Author-Name: Samuel Hurtado
Author-X-Name-First: Samuel
Author-X-Name-Last: Hurtado
Author-Name: Javier J. Pérez
Author-X-Name-First: Javier J.
Author-X-Name-Last: Pérez
Author-Name: Alberto Urtasun
Author-X-Name-First: Alberto
Author-X-Name-Last: Urtasun
Title: The narrative about the economy as a shadow forecast: an analysis using Bank of Spain quarterly reports
Abstract: 
 This paper constructs a text-based indicator that reflects the sentiment of the Bank of Spain economic outlook reports. Our sentiment indicator mimics very closely the first release of the GDP growth rate, which is published after the publication of the reports, and the Bank of Spain’s quarterly forecasts of the GDP growth rate. In addition, not only the narrative is consistent with the quantitative projections, but it also complements them by discussing information which is not directly reflected in the point forecasts, and may put on the table potential risks that will be included in the numerical projections of the next quarter. Thus, while the quantitative projections tend to underestimate the GDP growth rate especially during upturns, the narrative allows to outweigh this conservative bias. Overall, from a Central Bank’s communication perspective, it is the combination of quantitative forecast and narrative that provides a more precise picture of expected economic activity.
Journal: Applied Economics
Pages: 2874-2887
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999386
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999386
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2874-2887




Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Biolsi
Author-X-Name-First: Christopher
Author-X-Name-Last: Biolsi
Author-Name: Brian Goff
Author-X-Name-First: Brian
Author-X-Name-Last: Goff
Author-Name: Dennis Wilson
Author-X-Name-First: Dennis
Author-X-Name-Last: Wilson
Title: Task-level match effects and worker productivity: evidence from pitchers and catchers
Abstract: 
 The match between Major League Baseball catchers and pitchers combines characteristics of a for-profit production setting with those of a more intimate, family-type environment. We estimate the importance of these matches at the task level of getting outs and for getting strikeouts using a two-way fixed-effects strategy. We find that match effects matter almost as much as pitcher fixed effects and more than catcher effects for getting an out of any kind. For strikeouts, match effects matter more than catcher effects, if not as much as pitcher effects. We also examine influences on productive matches, showing that match effects are improved when both the pitcher and the catcher are born in the same country, are both born in predominantly Spanish-speaking countries, or as the number of shared experiences increases. All of these fit within a ‘positive assortative’ category of matches. We do not find evidence that relative experience matters for match effects.
Journal: Applied Economics
Pages: 2888-2899
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999898
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999898
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2888-2899




Template-Type: ReDIF-Article 1.0
Author-Name: Borja Gambau
Author-X-Name-First: Borja
Author-X-Name-Last: Gambau
Author-Name: Juan C. Palomino
Author-X-Name-First: Juan C.
Author-X-Name-Last: Palomino
Author-Name: Juan G. Rodríguez
Author-X-Name-First: Juan G.
Author-X-Name-Last: Rodríguez
Author-Name: Raquel Sebastian
Author-X-Name-First: Raquel
Author-X-Name-Last: Sebastian
Title: COVID-19 restrictions in the US: wage vulnerability by education, race and gender
Abstract: 
 We study economic vulnerability to the stay-at-home orders and social distancing measures imposed to prevent COVID-19 contagion in the US by education, race, gender, and state. Under 2 months of lockdown plus 10 months of partial functioning we find that, without compensating policies, wage inequality and poverty would increase in the US for all social groups and states. We estimate a national potential increase in inequality of 4.1 Gini points and of 9.7 percentage points for poverty, with uneven increases by race, gender, and education. The restrictions imposed to curb the pandemic produce a double process of divergence: both inequality within and between social groups increase, with education accounting for the largest part of the rise in inequality between groups. Education level differences also impact wage poverty risk more than differences by race or gender, making the low-educated the most vulnerable group, while workers with higher education of any race and gender are less exposed. When measuring the potential percentile rank change, most women with secondary education or higher move up, while most men without higher education suffer downward mobility. Our findings can inform public policy aiming to address the disparities in vulnerability to pandemic-related shocks across different socioeconomic groups.
Journal: Applied Economics
Pages: 2900-2915
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999899
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999899
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2900-2915




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Withey
Author-X-Name-First: Patrick
Author-X-Name-Last: Withey
Author-Name: Chinmay Sharma
Author-X-Name-First: Chinmay
Author-X-Name-Last: Sharma
Author-Name: Van Lantz
Author-X-Name-First: Van
Author-X-Name-Last: Lantz
Author-Name: Galen McMonagle
Author-X-Name-First: Galen
Author-X-Name-Last: McMonagle
Author-Name: Thomas O. Ochuodho
Author-X-Name-First: Thomas O.
Author-X-Name-Last: Ochuodho
Title: Economy-wide and CO2 impacts of carbon taxes and output-based pricing in New Brunswick, Canada
Abstract: 
 Economic models suggest that greenhouse gas emission reductions are warranted on a global scale. However, more analysis is needed at a regional level to inform local governments about the economics of alternative carbon policies. To this end, we develop a dynamic computable general equilibrium model for the case-study province of New Brunswick, Canada, and consider economic impacts and costs of two carbon policy scenarios. The first, called the Federal ‘backstop’, consists of a carbon tax on small emitters and an output-based pricing system (OBPS) on large emitters. The second consists of a common carbon tax across all emitters. We also consider different carbon tax revenue recycling options under each scenario. Results show that when a carbon tax is applied to all emitters starting at $20/tonne in 2019 and increasing to $170/tonne in 2030, cumulative present value GDP would decline in the range of 0.60%–0.63% (depending on revenue recycling options), and emissions will decline by more than 32%. Under the Federal backstop scenario, GDP reduction is only 0.24–0.26%, and emissions reduction is only 13%. In all scenarios, the costs range between $21 and 50/tonne on average, and are generally lower than the global social cost of carbon estimated in other research.
Journal: Applied Economics
Pages: 2998-3015
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001422
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001422
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:2998-3015




Template-Type: ReDIF-Article 1.0
Author-Name: Sanjiv Jaggia
Author-X-Name-First: Sanjiv
Author-X-Name-Last: Jaggia
Author-Name: Satish Thosar
Author-X-Name-First: Satish
Author-X-Name-Last: Thosar
Title: Education and risk-taking incentives: an analysis of CEO compensation contracts
Abstract: 
 We explore whether CEO educational background attributes and other demographic variables such as gender and age play a role in influencing the incentive features―pay-for-performance (delta) and pay-for-risk (vega)―embedded in their compensation contracts. We interpret these incentive features as robust proxies for idiosyncratic risk tolerance, which is an important element in diverse streams of research including but not limited to the upper echelons theory and the concomitant investigations into the drivers of strategic management choices and organizational outcomes. Using a unique and hand collected dataset, we uncover a number of interesting relationships. For instance, we find that CEOs graduating from elite schools and those with undergraduate majors in subjects like business/economics or the humanities display higher exposure to incentive pay compared to more specialized fields like engineering/science. Our study links observable demographic characteristics to the risk-taking propensities of CEOs which in our view would be of interest to hiring and compensation committees on corporate boards as they select (or renew the contracts of) senior executives.
Journal: Applied Economics
Pages: 3016-3030
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001424
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001424
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:3016-3030




Template-Type: ReDIF-Article 1.0
Author-Name: Stavroula P. Fameliti
Author-X-Name-First: Stavroula P.
Author-X-Name-Last: Fameliti
Author-Name: Vasiliki D. Skintzi
Author-X-Name-First: Vasiliki D.
Author-X-Name-Last: Skintzi
Title: Statistical and economic performance of combination methods for forecasting crude oil price volatility
Abstract: 
 This article aims to investigate whether a wide variety of combination methods, ranging from simple averaging approaches to time-varying techniques based on the past performance of the single models and regression tools, improve forecasting accuracy, risk management and economic gains across different forecasting horizons in a crude oil future framework. For this purpose, we implement various combination methods in fourteen HAR-RV models including different characteristics and uncertainty factors and evaluate their performance through statistical, risk management and economic loss functions. The empirical analysis yields some important conclusions: (i) sophisticated combinations improve the forecasting accuracy in all forecasting horizons, (ii) from a risk management perspective, regression-based combinations predict better potential loss of an investment on crude oil futures compared to individual models, (iii) machine learning and non-parametric combinations lead to higher economic gains across all forecasting horizons in a portfolio exercise and (iv) combinations are considered as a better alternative to single models using various robustness checks although the best performer among the combination methods is not stable across applications.
Journal: Applied Economics
Pages: 3031-3054
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001425
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001425
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:3031-3054




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Jebaraj Benjamin
Author-X-Name-First: Samuel Jebaraj
Author-X-Name-Last: Benjamin
Author-Name: Pallab Kumar Biswas
Author-X-Name-First: Pallab Kumar
Author-X-Name-Last: Biswas
Author-Name: M Srikamalaladevi M Marathamuthu
Author-X-Name-First: M Srikamalaladevi
Author-X-Name-Last: M Marathamuthu
Author-Name: Murugesh Arunachalam
Author-X-Name-First: Murugesh
Author-X-Name-Last: Arunachalam
Title: Social Media Sentiments and Firm Value
Abstract: 
 This paper examines the link between social media sentiments and firm value. Using a sample of Fortune 500 firms from 2010 to 2017, we find that positive social media sentiments increase firm value, whereas negative social media sentiments do not decrease firm value. Next, we consider the link between social media sentiments and firm value in the context of the firms’ environmental, social, and governance performance. Our main findings remain unchanged for firms with low environmental, social, and governance performance. We also find that these results are more pronounced for firms in industries with high advertising spending. Our results are supported by a series of robustness tests.
Journal: Applied Economics
Pages: 2983-2997
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001421
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001421
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:2983-2997




Template-Type: ReDIF-Article 1.0
Author-Name: Qian Cao
Author-X-Name-First: Qian
Author-X-Name-Last: Cao
Author-Name: Bing Ma
Author-X-Name-First: Bing
Author-X-Name-Last: Ma
Author-Name: Yanqi Zhu
Author-X-Name-First: Yanqi
Author-X-Name-Last: Zhu
Title: Shadow banking participation and stock market crash risk: evidence from China
Abstract: 
 In this paper, we use public entrusted loan announcements and financial data on China listed A-shares to identify shadow banking participation as a new factor affecting firms’ stock market crash risks. We also provide new sets of empirical evidence to the inconclusive literature about how borrowing and lending behaviours affect investors’ perceptions and the firms. We find that both borrowing and lending of small firms reduce firms’ stock market crash risks, and lending of big firms increases firms’ crash risks. Moreover, our results on affiliated transactions suggest the existence of both risk-sharing and negative spillover effects in Chinese business groups. The results are robust to different fixed effects, different standard error clustering specifications, alternative crash risk measures and additional control variables.
Journal: Applied Economics
Pages: 2969-2982
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001420
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001420
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:2969-2982




Template-Type: ReDIF-Article 1.0
Author-Name: Qichuan Jiang
Author-X-Name-First: Qichuan
Author-X-Name-Last: Jiang
Author-Name: Xuejiao Ma
Author-X-Name-First: Xuejiao
Author-X-Name-Last: Ma
Title: Risk transmission between old and new energy markets from a multi-scale perspective: the role of the EU emissions trading system
Abstract: 
 The trading market of carbon emission permits is not only an effective tool for tackling climate change, but it also reinforces the connection between carbon and energy markets by risk transmission. This paper investigates the volatility spillover effects and dynamic correlation between fossil energy, clean energy and the European Union carbon markets by applying the asymmetric BEKK- and DCC-GARCH models in a time-frequency framework and designs the portfolio strategies. Empirical results display that fossil energy market has a significantly positive impact on the clean energy market at most scales, but the feedback transmission is relatively weak. Two indirect volatility spillover effects exist between the three markets, which are ‘fossil energy→carbon→clean energy’ and ‘clean energy→carbon→fossil energy’, suggesting that the carbon market plays a vital role in bridging the clean and fossil energy markets. Significant time-varying asymmetric effects are identified between the three markets, and the carbon market is confirmed to offer the least expensive hedge to an investment in oil. Our findings can provide meaningful implications for policymakers to design market mechanism and investors to adjust hedging strategies and diversify their portfolios.
Journal: Applied Economics
Pages: 2949-2968
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2000931
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2000931
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:2949-2968




Template-Type: ReDIF-Article 1.0
Author-Name: Celiwe Muvaraidzi Nithammer
Author-X-Name-First: Celiwe Muvaraidzi
Author-X-Name-Last: Nithammer
Author-Name: Jugal Mahabir
Author-X-Name-First: Jugal
Author-X-Name-Last: Mahabir
Author-Name: Johane Dikgang
Author-X-Name-First: Johane
Author-X-Name-Last: Dikgang
Title: Efficiency of South African water utilities: a double bootstrap DEA analysis
Abstract: 
 Although the efficiency of the water sector has been studied extensively utilizing data envelopment analysis (DEA), most of the literature tends to use the conventional DEA model to compute efficiency scores. In addition, there are many studies that undertake a second stage regression of the efficiency scores against a set of covariates. However, such second-stage analyses are problematic due to potential serial correlation inherent in the estimated efficiency scores. To determine the bias-corrected efficiency scores of rural and urban water utilities in South Africa, this study uses a robust, non-parametric DEA bootstrapping model to generate them. Moreover, little is known about relative performance of the conventional DEA versus bias-corrected DEA. In addition, the truncated double-bootstrap regression results provide insights into the drivers of efficiency, including how water policies and the political and institutional contexts of water utilities can impact relative efficiencies. We found that there are significant differences between the rankings and efficiency scores generated by the conventional DEA model compared to the double-bootstrap DEA model, for both urban and rural samples. The regression model found the location and the ratio of metered to unmetered connections to be significant determinants of efficiency for both urban and rural water utilities.
Journal: Applied Economics
Pages: 3055-3073
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2002802
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2002802
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:3055-3073




Template-Type: ReDIF-Article 1.0
Author-Name: Xuechen Meng
Author-X-Name-First: Xuechen
Author-X-Name-Last: Meng
Author-Name: Shanlang Lin
Author-X-Name-First: Shanlang
Author-X-Name-Last: Lin
Author-Name: Gui Ren
Author-X-Name-First: Gui
Author-X-Name-Last: Ren
Title: The effect of HSR connection on urban cluster centrality: evidence from China
Abstract: 
 In a time varying difference-in-differences setting, we empirically test the impact of high-speed rail (HSR) connections on urban clusters in China. We construct an urban cluster centrality index to reflect changes in the economic positions of counties in clusters. The results show the following: (1) The HSR connection has a positive effect on urban cluster centrality, especially for counties with higher centrality. (2) The heterogeneity effect indicates that western counties centrality has greatly increased their urban cluster centrality compared to eastern areas. (3) Mechanism estimation indicates that the different result to western and eastern counties is due to the high skill labour transfer from eastern to western counties.
Journal: Applied Economics
Pages: 3088-3102
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003288
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2003288
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3088-3102




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Gokhan Yucel
Author-X-Name-First: Ali Gokhan
Author-X-Name-Last: Yucel
Author-Name: Cihat Koksal
Author-X-Name-First: Cihat
Author-X-Name-Last: Koksal
Author-Name: Sevil Acar
Author-X-Name-First: Sevil
Author-X-Name-Last: Acar
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: The impact of COVID-19 on Turkey’s tourism sector: fresh evidence from the fractional integration approach
Abstract: 
 The aim of this paper is to analyze whether the profound effects of COVID-19 on Turkey’s tourism sector will be permanent or transitory. Such an investigation deserves attention during the ongoing pandemic due to the importance of Turkey in the international tourism industry. To better understand and analyze the dynamics of tourism, we examine a long period of time spanning from January 1977 to March 2021 using a fractional integration approach. The findings provide clear-cut evidence that the shocks to the tourism sector display very low degrees of persistence in the pre-pandemic period whereas degrees of persistence in the post-pandemic period are very high. We also identify the changes in the persistence of tourism month by month. Overall, the impacts of COVID-19 on Turkey’s tourism will not be transitory. Therefore, the government should be actively involved in the recovery process of the tourism sector if Turkey wants to reach the number of tourist arrivals it once used to host. Also, the methodology employed in this study could be used as a benchmark to explore the impacts of the ongoing pandemic on other sectors (JEL: C22: I15: L83: Z32).
Journal: Applied Economics
Pages: 3074-3087
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2022.2047602
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047602
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3074-3087




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Rogna
Author-X-Name-First: Marco
Author-X-Name-Last: Rogna
Author-Name: Bich Diep Nguyen
Author-X-Name-First: Bich Diep
Author-X-Name-Last: Nguyen
Title: Firearms law and fatal police shootings: a panel data analysis
Abstract: 
 Among industrialized countries, the U.S. holds two somewhat inglorious records: the highest rate of fatal police shootings and the highest rate of deaths related to firearms. The latter has been associated with firearms prevalence mostly due to permissive legislation in several member states. The present paper investigates the relation between firearms legislation and the number of fatal police shooting episodes using a seven–year U.S state–level panel dataset. Our results confirm the negative impact of stricter firearms regulations on deadly use of force by police officers found in previous cross–sectional studies. However, in contrast with previous findings, we show that such impact is not mediated by gun availability. We also show that regulations pertaining to gun owner accountability are most effective in reducing fatal police shooting incidence. These results suggest that, from a public health perspective, what matters most is who owns guns rather than how many guns are owned.
Journal: Applied Economics
Pages: 3121-3137
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003290
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2003290
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3121-3137




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Kuang
Author-X-Name-First: Wei
Author-X-Name-Last: Kuang
Title: Is hedge fund a hedge for equity markets?
Abstract: 
 The COVID-19 pandemic has severely impacted financial markets, triggering a flight from risky to safe-haven assets. This paper analyzes the safe-haven properties of hedge funds. Specifically, we examine the relative change in equity portfolio risk with a proportional allocation to hedge fund. Our analysis indicates that adding a composite hedge fund index to an equity portfolio results in a risk reduction relative to holding equities alone. The result is shown to hold across a range of allocation weightings and periods. The hedging effectiveness, however, varies across hedge funds strategies, downside risk measures, and allocation weightings. The arbitrage and event-type strategies are prone to tail risks and the undesired third and fourth moment of returns attributes reduce the effectiveness of tail risk reduction. This suggests that hedge funds can be used to provide shelter from turbulence in traditional markets, but appropriate strategies need to be selected to achieve effective hedging.
Journal: Applied Economics
Pages: 3154-3179
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003748
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2003748
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3154-3179




Template-Type: ReDIF-Article 1.0
Author-Name: François-Charles Wolff
Author-X-Name-First: François-Charles
Author-X-Name-Last: Wolff
Author-Name: Frédéric Salladarré
Author-X-Name-First: Frédéric
Author-X-Name-Last: Salladarré
Title: A first-sale price index of seafood products: evidence from France 1994-2020
Abstract: 
 Studies on price trends of seafood products in the medium run remain scarce. In this paper, we investigate changes in first-sale prices of fish sold in France over the last 25 years. Drawing on the index number literature, we construct monthly chained fish price indices which are free from seasonal fluctuations. Our empirical analysis relies on a dataset including 126 million transactions completed in all French fish markets from 1994 to 2020. We show that first-sale prices of seafood products have substantially increased in the medium run, more than the inflation rate, except during the economic crisis from 2007 to 2009 and recently in 2020 due to the Covid pandemic. However, those higher prices have not always led to an increase in sales revenue of fishermen because of the continuous decrease in fish catches. In particular, the economic situation of fisheries has substantially worsen since 2017.
Journal: Applied Economics
Pages: 3103-3120
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003289
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2003289
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3103-3120




Template-Type: ReDIF-Article 1.0
Author-Name: Lingli Xu
Author-X-Name-First: Lingli
Author-X-Name-Last: Xu
Author-Name: Liang Wang
Author-X-Name-First: Liang
Author-X-Name-Last: Wang
Author-Name: Christian Nygaard
Author-X-Name-First: Christian
Author-X-Name-Last: Nygaard
Title: Locational decisions and subjective well-being: an empirical study of Chinese urban migrants
Abstract: 
 Motivated by the popularity of ‘Run away from Beijing, Shanghai, and Guangzhou’ saying in China this paper tests the determinants of subjective well-being (SWB) of long-term migrants and the extent to which migrants make optimal locational decisions in terms of SWB. China’s cities are divided into 4 core first-tier cities, 15 new first-tier cities, and non-first-tier cities (94 in the sample) reflecting different levels of economic opportunity and amenities. Migrants can only be observed in their present location. Hence, we use a semi-parametric marginal treatment effect method to compare actual and counterfactual SWB outcomes. Results shows that migrants’ SWB is greater in non-first-tier cities than first-tier cities; the determinants of SWB differ for male and female migrants; and, female migrants with urban hukou are typically better off in the four core first-tier cities as well as other first-tier cities. Overall, there is thus a marked gender differences in migrants’ optimal locational choice. From a productivity and social cohesion perspective, these results make it imperative that public policy in China addresses the gender and spatial sorting imbalances that arises from differences in SWB determinants and optimal location as ever more educated young people join the labour force.
Journal: Applied Economics
Pages: 3180-3195
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005237
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2005237
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3180-3195




Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy K. Nguyen
Author-X-Name-First: Jeremy K.
Author-X-Name-Last: Nguyen
Author-Name: Adam Karg
Author-X-Name-First: Adam
Author-X-Name-Last: Karg
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Heath McDonald
Author-X-Name-First: Heath
Author-X-Name-Last: McDonald
Title: Predicting individual event attendance with machine learning: a ‘step-forward’ approach
Abstract: 
 Accurately predicting attendance at live events has important operational and financial implications for the arts, entertainment and sport industries. Advances in machine learning offer the potential to improve these processes. Using 10 rounds of attendance data from 5,946 season ticket holders of one professional football team (i.e. 59,460 decisions), we assess the ability of four machine learning approaches to predict attendance. Our results indicate that two machine learning algorithms, XGBoost and Support Vector Machine (SVM), outperform the most commonly employed methodology for modelling individual sport attendance (i.e. logistic regression), in terms of accuracy, recall, F-score and area under the curve (AUC). Random forest and boosted aggregation (bagging) approaches are also compared. Our results suggest that adopting machine learning methodologies, and in particular, XGBoost and SVM, offers providers of live events an improved ability to understand and predict individual attendance, and insight into which consumers are most receptive to changing attendance decisions.
Journal: Applied Economics
Pages: 3138-3153
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003747
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2003747
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3138-3153





Template-Type: ReDIF-Article 1.0
Author-Name: Dong Lu
Author-X-Name-First: Dong
Author-X-Name-Last: Lu
Author-Name: Tian Xia
Author-X-Name-First: Tian
Author-X-Name-Last: Xia
Author-Name: Hang Zhou
Author-X-Name-First: Hang
Author-X-Name-Last: Zhou
Title: Foreign exchange intervention and monetary policy rules under a managed floating regime: evidence from China
Abstract: 
 This paper investigates the consequences of foreign exchange (FX) intervention in monetary policy under a managed floating regime. Focusing on China’s FX intervention, we identify periods of strong and weak FX intervention using a Markov regime switching approach. We then evaluate quantity-based monetary policy rules using both regime switching reduced-form and structural estimations. In particular, monetary policy regimes obtained from the structural estimation match well with the previously identified intervention regimes. We find that the People’s Bank of China has significant exchange rate stabilization incentives during periods of strong FX intervention, and that the monetary policy rule depends on the state of FX intervention. Furthermore, our estimations point to a trade-off between the central bank’s internal and external policy targets in that strong FX intervention leads to weak responses to domestic GDP and inflation fluctuations.
Journal: Applied Economics
Pages: 3226-3245
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005767
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2005767
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3226-3245



Template-Type: ReDIF-Article 1.0
Author-Name: Régis Y. Chenavaz
Author-X-Name-First: Régis Y.
Author-X-Name-Last: Chenavaz
Author-Name: Isabelle Pignatel
Author-X-Name-First: Isabelle
Author-X-Name-Last: Pignatel
Title: Utility foundation of a Cobb-Douglas demand function with two attributes
Abstract: 
 It is known how to derive, from a utility maximization programme, a Cobb-Douglas demand function depending on the sole product price. This article shows how to derive a Cobb-Douglas demand function, which depends on both the product price and quality. More broadly, it offers a normative foundation, with a quasi-linear utility function, to the use of a Cobb-Douglas demand function of two attributes. It also provides simple measures of consumer surplus and social welfare.
Journal: Applied Economics
Pages: 3206-3211
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005238
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2005238
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3206-3211



Template-Type: ReDIF-Article 1.0
Author-Name: Leqi Zhao
Author-X-Name-First: Leqi
Author-X-Name-Last: Zhao
Author-Name: Charles Harvie
Author-X-Name-First: Charles
Author-X-Name-Last: Harvie
Author-Name: Amir Arjomandi
Author-X-Name-First: Amir
Author-X-Name-Last: Arjomandi
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Title: Entrepreneurs and China’s private sector SMEs’ performance
Abstract: 
 The Chinese government adopted the ‘Mass Entrepreneurship and Innovation’ (MEI) strategy in 2015 to increase the number of entrepreneurs, the number of private small-medium enterprises (SMEs) and firm innovation. Using China’s firm-level data, we find that different entrepreneurial factors such as startup motivation, personal characteristics (age, gender), human capital (education, experience) and guanxi (political and business connections) impact the technical efficiency scores of SMEs in Eastern and non-Eastern regions differently. Our results also show that regional economic development and entrepreneurial quality disparities in China’s economy warrant entrepreneurial policies tailored to address these differences if they are to be effective in improving the technical efficiency performance of firms. Based on our findings, one may argue that the MEI strategy will not be adequate by simply focusing upon increasing the number of entrepreneurs without considering regional differences in development and entrepreneur characteristics.
Journal: Applied Economics
Pages: 3279-3295
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2006135
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2006135
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3279-3295



Template-Type: ReDIF-Article 1.0
Author-Name: Touhami Abdelkhalek
Author-X-Name-First: Touhami
Author-X-Name-Last: Abdelkhalek
Author-Name: Dorothée Boccanfuso
Author-X-Name-First: Dorothée
Author-X-Name-Last: Boccanfuso
Title: Human Capital Index (HCI) – from uncertainty to robustness of comparisons
Abstract: 
 In order to monitor progress in human development within and between countries and over time, several simple and composite indices have been developed and are regularly used, particularly in public policy decision-making. In 2019, the World Bank adopted an index developed by Kraay (2018), the Human Capital Index (HCI).It combines demographic, education, and health dimensions on a complementary statistical and econometric basis. It is used by the World Bank in the area of human development for monitoring and comparison purposes, in time and space. Beyond the debate about the construction of the index itself in terms of weighting and aggregation, the $$HCI$$HCI is subject to statistical and econometric uncertainties that are not adequately captured by comparisons and are therefore, not robust.In this article, we propose a systematic approach taking into account these simultaneous uncertainties using a projection method. We present its practical implementation to construct confidence intervals to the $$HCI$$HCI that reflect these uncertainties. It appears that if confidence intervals overlap for two countries or for the same country over time, then comparisons would be inconclusive regardless of the point estimates.
Journal: Applied Economics
Pages: 3246-3260
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005768
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2005768
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3246-3260



Template-Type: ReDIF-Article 1.0
Author-Name: Désiré Avom
Author-X-Name-First: Désiré
Author-X-Name-Last: Avom
Author-Name: Chrysost Bangake
Author-X-Name-First: Chrysost
Author-X-Name-Last: Bangake
Author-Name: Hermann Ndoya
Author-X-Name-First: Hermann
Author-X-Name-Last: Ndoya
Title: Does bank concentration stem from financial inclusion in Africa?
Abstract: 
 This paper provides original econometric evidence on whether banking concentration stems from financial inclusion in African countries. In applying a system generalized methods of moments (SGMM) and the panel threshold regression method to a sample of 30 African countries for 2004–2017, we find two main results. First, bank concentration negatively and significantly affects financial inclusion in Africa. Second, as far as the nonlinear relationship is concerned, we find two extreme regimes with a smooth shift characterizing the bank concentration–financial inclusion nexus, with respect to conditional variables; bank concentration effects are negative and significant under the first regime and positive and significant under the second. Furthermore, our findings show that the nonlinear relationship between bank concentration and financial inclusion depends on the levels of financial freedom, mobile phones penetration, protection of property rights, control of corruption and regulatory quality. The results are robust to alternative measures of banking market structure, such as Lerner index and Boone indicator and to the panel smooth transition regression (PSTR).
Journal: Applied Economics
Pages: 3261-3278
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2006134
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2006134
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3261-3278



Template-Type: ReDIF-Article 1.0
Author-Name: Xinxiang Shi
Author-X-Name-First: Xinxiang
Author-X-Name-Last: Shi
Author-Name: Mingming Zhuang
Author-X-Name-First: Mingming
Author-X-Name-Last: Zhuang
Author-Name: Cheng King
Author-X-Name-First: Cheng
Author-X-Name-Last: King
Title: Getting implicit incentives right in SOEs: research on executive perks in China’s anticorruption movement
Abstract: 
 The anticorruption movement since 2012 has a deep impact on Chinese social governance and economic development. This paper examines the effect of anticorruption rules on the performance of state-owned enterprises (SOEs) and suggests that perquisite consumption of SOEs has an implicit incentive for the executives. Although anticorruption rules restrict the excess perks of SOEs and reduce financial performance, it unexpectedly boosts SOEs’ capital market value. A few mechanisms may be at work: (i) the diminishing marginal utility of executive perquisite consumption of SOEs; (ii) a refined macroeconomic environment leads to better performance in company value; and (iii) the decreased financing costs has a positive effect on the company value of SOEs.
Journal: Applied Economics
Pages: 3212-3225
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005239
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2005239
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3212-3225



Template-Type: ReDIF-Article 1.0
Author-Name: Hyoungjong Kim
Author-X-Name-First: Hyoungjong
Author-X-Name-Last: Kim
Title: A finite sample correction for the panel Durbin–Watson test
Abstract: 
 This study shows that the panel Durbin–Watson $$d$$d test is incapable of distinguishing temporal heteroskedasticity and serial correlation with short time series. The study proposes a new finite sample correction for solving this weakness of the panel Durbin–Watson test. Monte Carlo simulations demonstrate that the corrected statistic performs better in terms of size and power than the extant panel $$d$$d tests. It leads to more accurate inferences in empirical studies.
Journal: Applied Economics
Pages: 3197-3205
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2020.1869172
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869172
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3197-3205

Template-Type: ReDIF-Article 1.0
Author-Name: Chris Belmert Milindi
Author-X-Name-First: Chris Belmert
Author-X-Name-Last: Milindi
Author-Name: Roula Inglesi-Lotz
Author-X-Name-First: Roula
Author-X-Name-Last: Inglesi-Lotz
Title: The role of green technology on carbon emissions: does it differ across countries’ income levels?
Abstract: 
 This study examines the impact of green technology on CO2 emissions in a sample of 45 countries for 1989–2018. Renewable energy consumption and environmental-related patents are used as indicators of green technology. We consider the production of renewable energy and the development of climate-related innovation as ‘two sides of the same coin’. One needs to be complemented by the other for countries to be successful in the fight against climate change. After applying the fixed-effect method with Driscoll and Kraay standard errors, results reveal that renewable energy consumption significantly reduces CO2 emissions in the full sample and all three subsamples (High-income, Upper-middle-income, and Lower-middle income countries). However, environmental-related patents significantly lower CO2 emissions only in very high-income countries. This paper also analyses how CO2 emissions influence the development of green technology and carbon-intensive technology. A negative association is found between renewable energy and CO2 emissions in the high-income and upper-middle-income groups. Environmental-related patents respond positively to carbon emissions only in high-income countries. The results allow us to draw important conclusions for energy policies. Among the necessary measures to be adopted, developing countries should not neglect the promotion of green innovation, which is a critical condition for carbon neutrality achievement.
Journal: Applied Economics
Pages: 3309-3339
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.1998331
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998331
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3309-3339



Template-Type: ReDIF-Article 1.0
Author-Name: Roland Cheo
Author-X-Name-First: Roland
Author-X-Name-Last: Cheo
Author-Name: Tingting Han
Author-X-Name-First: Tingting
Author-X-Name-Last: Han
Author-Name: Kainan Huang
Author-X-Name-First: Kainan
Author-X-Name-Last: Huang
Author-Name: Jingping Li
Author-X-Name-First: Jingping
Author-X-Name-Last: Li
Title: Prosocial village leaders and the resettlement outcomes of land-lost farmers: evidence from Qingdao, China
Abstract: 
 This paper examines whether the prosociality of village leaders who were involved in the original implementation of a resettlement decision impact the well-being of households from seven villages four years after the displacement. In particular, we report the significant statistical correlation between the level of group cooperation of village officials as elicited from a public good game in seven rural villages and the reported levels of life satisfaction four years after the resettlement. The data comes from two sources: (i) a laboratory experiment with village officials at the time of resettlement, and (ii) follow-up telephone interviews with resettled villagers. We find that these prosocial attitudes of leaders complement other sustainable livelihood measures in promoting the well-being of resettled villagers.
Journal: Applied Economics
Pages: 3353-3372
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2008298
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2008298
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3353-3372



Template-Type: ReDIF-Article 1.0
Author-Name: Juan Aparicio
Author-X-Name-First: Juan
Author-X-Name-Last: Aparicio
Author-Name: Jose M. Cordero
Author-X-Name-First: Jose M.
Author-X-Name-Last: Cordero
Author-Name: Lidia Ortiz
Author-X-Name-First: Lidia
Author-X-Name-Last: Ortiz
Title: Plausible values and their use in efficiency analyses with educational data
Abstract: 
 There is extensive literature focused on the evaluation of efficiency in the education sector, both at the micro level, analyzing the performance of students or schools, and at the macro level, exploring the behavior of regions or countries. This type of studieshas been driven by exploiting data available in international large-scale assessments, where output measures are usually represented by the so-called plausible values, understood as a representation of the range of the abilities of each student. In this study, we analyze the different options available to incorporate these plausible values in applied studies focused on measuring efficiency and how the results obtained can be affected according to the selected criterion. To do this, we assess the efficiency of Spanish schools participating in PISA using the two most common methodologies in this field: data envelopment analysis and stochastic frontier analysis and considering three different proxies for the educational output: (i) a single plausible value; (ii) an aggregate measure calculated from the ten plausible values available; (iii) an average of the estimates made with the ten plausible values separately. The main conclusion derived from our results is that there are hardly any differences between in the estimates made with different strategies.
Journal: Applied Economics
Pages: 3340-3352
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2006136
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2006136
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3340-3352



Template-Type: ReDIF-Article 1.0
Author-Name: Dănuţ-Vasile Jemna
Author-X-Name-First: Dănuţ-Vasile
Author-X-Name-Last: Jemna
Author-Name: Mihaela David
Author-X-Name-First: Mihaela
Author-X-Name-Last: David
Title: FERTILITY DECLINE AND SOCIO-ECONOMIC UNCERTAINTY IN CENTRAL AND EASTERN EUROPEAN COUNTRIES AFTER 1990
Abstract: 
 How do changes in socio-economic uncertainty affect fertility? For the Central and Eastern European11In this group of countries, there are usually included: Albania, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, FYR Macedonia, the Republic of Moldova, Montenegro, Poland, Romania, the Russian Federation, Serbia, Slovakia, Slovenia, and Ukraine. In our study, we limit the group to the EU members, namely to 11 countries. (CEE) countries, the literature considers economic uncertainty as a determinant factor, among others, for explaining the fertility decline after the fall of the communist regime. In this paper we evaluate the theoretical framework proposed in literature and empirically analyse the relationship between socio-economic uncertainty and fertility in the CEE countries, by using several measures of uncertainty and controlling for social and demographic variables. Employing the panel methodology for national data between 1990 and 2018, we analyse the cross-country and time variation impact of female employment, unemployment, and output growth volatility upon fertility.
Journal: Applied Economics
Pages: 3296-3308
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.1991564
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1991564
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3296-3308



Template-Type: ReDIF-Article 1.0
Author-Name: Anh-Tu Nguyen
Author-X-Name-First: Anh-Tu
Author-X-Name-Last: Nguyen
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Author-Name: W. Robert J. Alexander
Author-X-Name-First: W. Robert J.
Author-X-Name-Last: Alexander
Author-Name: Shih-Hao Lu
Author-X-Name-First: Shih-Hao
Author-X-Name-Last: Lu
Title: Openness to trade, foreign direct investment, and economic growth in Vietnam
Abstract: 
 Using data over the period 1986 to 2020 and employing the Auto Regressive Distributed Lag bounds testing technique, we examine the linkages amongst economic growth, foreign direct investment (FDI), exports, and imports in Vietnam. The ARDL technique is particularly well-suited in the presence of a mixture of stationary and non-stationary variables. We find a long-run relationship indicating that FDI strongly promotes economic growth, but exports and imports do not have a statistically significant impact on growth. The robustness of these results is confirmed by a range of diagnostic tests and alternative methods of estimation. Additionally, the vector error correction model reveals that, in the short-run, both imports and exports have bidirectional Granger causality with FDI, while FDI has bidirectional Granger causality with economic growth in the long-run. Our findings suggest some policies to develop FDI to bolster economic growth.
Journal: Applied Economics
Pages: 3373-3391
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009112
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009112
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3373-3391



Template-Type: ReDIF-Article 1.0
Author-Name: Shuai Chu
Author-X-Name-First: Shuai
Author-X-Name-Last: Chu
Author-Name: Masanori Kuroki
Author-X-Name-First: Masanori
Author-X-Name-Last: Kuroki
Author-Name: Xiangbo Liu
Author-X-Name-First: Xiangbo
Author-X-Name-Last: Liu
Title: Do research universities boost regional economic development? -A case study of University of Science and Technology of China
Abstract: 
 This study examines the interactions between the presence of research universities and regional economic development, drawing on the event of the forced relocation of the University of Science and Technology of China. We analyze the development in the treated regions compared with a set of control regions that are created using the synthetic control method and find that research universities may slow regional economic development. We then perform a series of robustness checks, and the main results carry through. By using more exogenous shocks and a more rational identification strategy, our study provides new evidence that research universities do not necessarily boost regional economic development.
Journal: Applied Economics
Pages: 3392-3411
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009114
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009114
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3392-3411



Template-Type: ReDIF-Article 1.0
Author-Name: Qing Xu
Author-X-Name-First: Qing
Author-X-Name-Last: Xu
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Fang Wang
Author-X-Name-First: Fang
Author-X-Name-Last: Wang
Author-Name: Qing Yang
Author-X-Name-First: Qing
Author-X-Name-Last: Yang
Author-Name: Jin Liu
Author-X-Name-First: Jin
Author-X-Name-Last: Liu
Title: Social pensions and risky financial asset holding in China
Abstract: 
 This study explores the impact of social pensions on risky household financial asset holding, taking the Urban and Rural Residents Pension Scheme (URRPS) in China as an example. We combine regression discontinuity with the difference-in-difference approach to analyze the 2015 and 2017 China Household Finance Survey (CHFS) data. The results show that the URRPS has significantly increased the likelihood of holding risky financial assets among Chinese households. Furthermore, the effect is larger for urban households than for rural households. Apart from social pensions, marital and health status, education, risk attitude, household size, asset value, and urban residence also affect the households’ risky financial asset holdings.
Journal: Applied Economics
Pages: 3412-3425
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009758
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009758
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3412-3425

Template-Type: ReDIF-Article 1.0
Author-Name: Yue Ming Zheng
Author-X-Name-First: Yue Ming
Author-X-Name-Last: Zheng
Author-Name: Qin Lv
Author-X-Name-First: Qin
Author-X-Name-Last: Lv
Author-Name: Ying Dong Wang
Author-X-Name-First: Ying Dong
Author-X-Name-Last: Wang
Title: Economic development, technological progress, and provincial carbon emissions intensity: empirical research based on the threshold panel model
Abstract: 
 To analyze the non-linear impact of technological progress on carbon emission intensity under different economic development levels, based on the adjusted STIRPAT model and threshold panel model, this study uses the IPCC inventory method and the DEA-Malmquist method to measure the carbon emissions intensity and technological progress index of 30 provinces in China from 2001 to 2016 to empirically examine the impact of technological progress on carbon emissions intensity. The results reveal that technological progress will increase carbon emissions intensity; technological progress with economic development level as the threshold variable has a single threshold effect on carbon emissions intensity, and the threshold value is 10.5656. Correspondingly, when the per capita GD is lower than 38,777.68 yuan, technological progress will increase the intensity of carbon emissions; when it is higher than 38,777.68 yuan, there will be a reduction effect.
Journal: Applied Economics
Pages: 3495-3504
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009760
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009760
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3495-3504



Template-Type: ReDIF-Article 1.0
Author-Name: Yingying Yi
Author-X-Name-First: Yingying
Author-X-Name-Last: Yi
Author-Name: Xiaoxiao Yu
Author-X-Name-First: Xiaoxiao
Author-X-Name-Last: Yu
Author-Name: Xiaotong Sun
Author-X-Name-First: Xiaotong
Author-X-Name-Last: Sun
Title: Will the liberalization of intermediate trade restrain corporate pollution emissions?—Empirical evidence from Chinese micro-enterprises
Abstract: 
 Based on the integrated data of the industrial pollution database, the customs database and the Chinese industrial enterprise database from 2000 to 2012, the system GMM Model is used to estimate the relationship between the liberalization of intermediate goods trade and corporate pollution emissions. Also, it is used to explore whether environmental regulations can achieve the reduction of intermediate goods trade effect. The results show that by dividing intermediate trade liberalization into importation and exportation, it aggravates the pollution emission of enterprises, while environmental regulations alleviate it. Heterogeneity analysis shows that the importation of intermediate products aggravates enterprise pollution in processing trade mode and reduces pollution in general trade mode. While exportation of intermediate products aggravates pollution in both of these two trade modes and only processing one is statistically significant. Geographically, both importing and exporting of intermediate goods aggravate enterprise emissions in the East and Midwest. More specifically, importation plays a bigger role in the Midwestern areas as exportation does in the eastern place. Furthermore, we discover that different industries differ greatly by dividing them into 11 categories. Therefore, it is necessary to optimize the trade structure of intermediate goods while considering the different development stages of different regions at the same time.
Journal: Applied Economics
Pages: 3521-3536
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2010644
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2010644
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3521-3536



Template-Type: ReDIF-Article 1.0
Author-Name: Marcella Cartledge
Author-X-Name-First: Marcella
Author-X-Name-Last: Cartledge
Author-Name: Luke Taylor
Author-X-Name-First: Luke
Author-X-Name-Last: Taylor
Title: Incentive pay and decision quality: evidence from NCAA football coaches
Abstract: 
 Using play-by-play American football data and panel data on head coach remuneration, we test whether a head coach’s incentive pay affects the quality of their decisions. We proceed by first estimating an ‘optimal strategy’ for first-down offensive plays, then investigate whether the gap between actual and optimal choices is affected by incentive pay. In contrast to merely looking at the outcome of an agent’s choice, our approach considers the decision environment and the resources available. We find a small, but significant, negative effect of incentive pay on decision quality. Critically, this effect is not found when looking at raw outcome measures.
Journal: Applied Economics
Pages: 3505-3520
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2010643
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2010643
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3505-3520



Template-Type: ReDIF-Article 1.0
Author-Name: Shoude Li
Author-X-Name-First: Shoude
Author-X-Name-Last: Li
Author-Name: Dong D. Li
Author-X-Name-First: Dong D.
Author-X-Name-Last: Li
Title: Quality improvement and process innovation of a firm facing reference price effects in a dynamic monopoly
Abstract: 
 In this article, we investigate a monopolist’s efforts for product innovation (or quality improvement) and process innovation (or reducing marginal production cost) with reference price effects in a dynamic setting. The significant features of our work are: (i) a monopolist deals with customer behavior according to economic principles and determines the price of the product, besides, the monopolist carries out the activities of product and process innovation; (ii) the consumers’ demand structure depends on product price, product quality and reference price, and takes a separable multiplicative way between the state variables (product quality and reference price) and the control variables (product price). Our main results suggest that (i) there exists unique saddle-point steady-state equilibrium under monopoly and social planning; (ii) as the memory parameter increases, it is very likely that the monopolist’s steady-state effort for process innovation is greater than that for product innovation; (iii) the efforts for product and process innovation under social planning are greater than that under monopoly; (iv) although the price is still determined by the monopolist under the social planning, the price under the social planning is higher than that under monopoly and (v) there is a negative price-quality relationship.
Journal: Applied Economics
Pages: 3537-3556
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2011105
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2011105
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3537-3556



Template-Type: ReDIF-Article 1.0
Author-Name: Ziruo Li
Author-X-Name-First: Ziruo
Author-X-Name-Last: Li
Author-Name: Jionghao Huang
Author-X-Name-First: Jionghao
Author-X-Name-Last: Huang
Author-Name: Xiaohua Xia
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Xia
Title: ‘Border’ effects of unobserved ‘borders’ in China’s internal trade
Abstract: 
 Based on the input-output model, this article constructs a database of inter-provincial trade flows covering 26 industries and 28 provinces of China from 1992 to 2017. By heuristic search algorithm and iterative regression method, this article identifies the location of unobserved ‘borders’ in China’s internal trade. Existing in the Northeast, Northwest, and Southwest of China, the ‘borders’ reduce inter-regional trade by 36.11–39.10%, 47.85–52.43%, and 40.07–47.06% from 1992 to 2017, respectively. The results are robust against employing alternative methodology, industry-level trade flows as well as alternative measurement of transportation costs. Social networks, difference in industrial structure and their geographic structures might adjust slowly with the development of the economic and even affect the ‘border’ effects. The ‘border’ effects are neither administrative barriers nor statistical artefacts, but arise more from spatial heterogeneity related to fundamentals.
Journal: Applied Economics
Pages: 3439-3481
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.1994519
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994519
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3439-3481



Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Barroso del Toro
Author-X-Name-First: Alberto
Author-X-Name-Last: Barroso del Toro
Author-Name: Xavier Tort-Martorell
Author-X-Name-First: Xavier
Author-X-Name-Last: Tort-Martorell
Author-Name: Miguel Angel Canela
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Canela
Title: How shareholders react to sustainable narratives about leading European energy companies? An event study using sentiment data from the global database for events, language and tone (GDELT)
Abstract: 
 This study aims to investigate how the shareholders of leading European energy companies value sustainability narratives. It uses news from the Global Database of Events, Location, Language, and Tone (GDELT) and analyses the cumulative average abnormal returns (CAAR) and abnormal volatilities (AV), incorporating the event study methodology. A total of 279,546 big news items were used, and 4,026 event studies were conducted. The extensive analysis of data and the segmentation of the news by tone, type of energy generation and environmental consequences helps to understand shareholders’ investment decisions. This study found that the sustainability narrative significantly impacts shareholder value; however, this narrative’s interpretation has no consensus. The sustainability news about these companies moves the stock market upwards for some shareholders, while others do the contrary. These results are observed by comparing CAAR and AV. The results found by this article are crucial for regulators to push forward an effective ecological transition. It should be legislated so that there is a common shareholders’ narrative, discouraging highly polluting investments.
Journal: Applied Economics
Pages: 3482-3494
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009759
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009759
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3482-3494



Template-Type: ReDIF-Article 1.0
Author-Name: Youngho Kang
Author-X-Name-First: Youngho
Author-X-Name-Last: Kang
Author-Name: Unjung Whang
Author-X-Name-First: Unjung
Author-X-Name-Last: Whang
Title: Exports and firm employment: the roles of R&D and exports to affiliates
Abstract: 
 Firm-level data from the Korean manufacturing sector is used to quantify the impact of both the extensive and intensive margins of exporting on employment, emphasizing the role of both firm-level R&D intensity and exports to foreign affiliates. The employment effects of exporting by employment contract status, i.e. regular or non-regular employees, are also separately examined. Here, findings show that a firm’s entry into export markets has a positive effect on its employment of regular workers; further, this positive effect is apparent in firms that belong to the group with the highest level of R&D intensity. With regard to the intensive margin, findings show that the negative impact on regular employment of firms’ export share in total sales stands out in the case of exports to non-affiliates. This negative impact, related to the intensive margin, is apparent in firms belonging to the group with the lowest R&D intensity, which is in line with the results for the extensive margin. The heterogeneous effects of exports depending on both firm-level R&D intensity and exports to foreign affiliates seem to be associated with the uncertainty that is due to the volatility of overseas sales.
Journal: Applied Economics
Pages: 3426-3438
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.1990204
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990204
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3426-3438

Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Sangram Keshari Jena
Author-X-Name-First: Sangram Keshari
Author-X-Name-Last: Jena
Author-Name: Nader Trabelsi
Author-X-Name-First: Nader
Author-X-Name-Last: Trabelsi
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: Conditional transmission of global shocks to emerging stock markets: evidence from the quantile connectedness network analysis
Abstract: 
 The novel quantile connectedness network method is used to investigate the vulnerability of emerging stock markets to global shocks in the normal, bear and bull markets. The size of the system-wide shock for an emerging market is doubled, while its own shock is halved in the bear and bull markets relative to the normal market and vice versa. As the size of the systemic shock increases in the bear and bull markets, which leads to an increase in the bilateral shock for emerging markets. Although the dollar index emerged as a risk factor only in the normal market, oil is not a risk factor for the emerging market bloc, irrespective of the state of the market. However, the US stock market is a major risk factor for emerging markets in all kinds of market conditions, although the degree of the shock spillover is more pronounced in the normal market than in the bear and bull markets. The robustness of the vulnerability is verified in a time-varying framework. Policy implications are also discussed.
Journal: Applied Economics
Pages: 3621-3634
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2014396
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2014396
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3621-3634



Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Apergis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Apergis
Author-Name: Iraklis Apergis
Author-X-Name-First: Iraklis
Author-X-Name-Last: Apergis
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: A technical efficiency analysis of intra-central bank settlement mechanism in Eurozone
Abstract: 
 This work employs the stochastic frontier method to explore the efficiency of the TARGET2 (T2) balances mechanism across the Eurozone countries. An index is introduced to support the estimation strategy and derives meaningful results from better capturing the mechanism’s efficiency. The analysis spans the period 2005–2017 and documents the significant role or inefficiencies influencing the role of T2 from unemployment and labor costs. The absence of T2 would have endangered the viability of the Eurozone to promote trade. There is enormous country heterogeneity on efficiency and inefficiency of the error terms in our model, which indicate persistent structural issues and temporary issues; to ensure its uninterrupted operation, the enhancement of the export orientation of the manufacturing base of countries with the least efficiency (high unemployment and labor costs) is essential.
Journal: Applied Economics
Pages: 3635-3653
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2015061
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2015061
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3635-3653



Template-Type: ReDIF-Article 1.0
Author-Name: Yunsheng Mi
Author-X-Name-First: Yunsheng
Author-X-Name-Last: Mi
Author-Name: Xiaozhi Chen
Author-X-Name-First: Xiaozhi
Author-X-Name-Last: Chen
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Title: Evaluating the effect of China’s targeted poverty alleviation policy on credit default: a regression discontinuity approach
Abstract: 
 Although the literature has found that targeted poverty alleviation (TPA) policy has many positive effects, whether it has a negative impact on farmers’ credit has been under-analyzed. A regression discontinuity approach has been employed to estimate the TPA policy’s causal effects on credit default because the registered poor farmer was primarily determined by whether a farmer’s pre-policy income fell below a given poverty line. Using data from China Household Finance Survey in 2015 and 2017, we have found that China’s registered poor farmers have a higher probability of credit default. This is because registered poor farmers protected by TPA policy pursue higher risk economic activities, leading to a higher credit default. Further analysis has shown that credit default broadly occurs in married registered poor farmers. In contrast, it rarely occurs among those with high social capital. Our empirical results have suggested the Chinese government should improve the identification rules of registered poor farmers, such as subjective psychology, and strengthen the monitoring system of their participation in economic activities.
Journal: Applied Economics
Pages: 3654-3667
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016585
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016585
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3654-3667



Template-Type: ReDIF-Article 1.0
Author-Name: Julia E. Blasch
Author-X-Name-First: Julia E.
Author-X-Name-Last: Blasch
Author-Name: Massimo Filippini
Author-X-Name-First: Massimo
Author-X-Name-Last: Filippini
Author-Name: Nilkanth Kumar
Author-X-Name-First: Nilkanth
Author-X-Name-Last: Kumar
Author-Name: Adan L. Martinez-Cruz
Author-X-Name-First: Adan L.
Author-X-Name-Last: Martinez-Cruz
Title: Boosting the choice of energy-efficient home appliances: the effectiveness of two types of decision support
Abstract: 
 Consumers’ limitations in assessing the lifetime cost of household appliances may sustain the much-cited energy efficiency gap. We analyse the impact of an individual’s energy and investment literacy and two different types of decision support on the ability to identify the appliance with the lower lifetime cost in an online randomized controlled trial among two independently chosen samples of the Swiss population. In a decision task, participants choose between appliances with different lifetime cost. One treatment offers a short education programme on how to calculate the lifetime cost of an appliance – via a set of information slides. The second treatment provides access to an online lifetime-cost calculator tool. We find that pre-treatment energy and investment literacy are positively associated with the probability of identifying the appliance with the lowest lifetime cost. Evidence in this paper suggest that both decision aids boost identification of energy-efficient appliances. We discuss strategies to scale up these boosters.
Journal: Applied Economics
Pages: 3598-3620
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2014395
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2014395
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3598-3620



Template-Type: ReDIF-Article 1.0
Author-Name: Chenggang Wang
Author-X-Name-First: Chenggang
Author-X-Name-Last: Wang
Author-Name: Huixia Wang
Author-X-Name-First: Huixia
Author-X-Name-Last: Wang
Title: The effects of education on health and mechanisms: evidence from China
Abstract: 
 Existing studies that explore the effects of education on health primarily focused on developed countries, and the extent to which education impacts health is still highly debated. This paper studies the causal effects of education on health in the largest developing country-China. We use 1977 Resuming College Entrance Exam Policy as an IV and find that education has little impact on health in general, while our findings suggest that people with higher education are more likely to be diagnosed with hypertension. We also test some possible mechanisms through which education might affect health, including smoking, drinking, exercise, and cognition. Majorities of these estimations provide no evidence that education would impact health behaviors or cognitive abilities. However, we find that higher-educated men are more likely to drink more and exercise less.
Journal: Applied Economics
Pages: 3582-3597
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2014394
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2014394
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3582-3597



Template-Type: ReDIF-Article 1.0
Author-Name: Matias Braun
Author-X-Name-First: Matias
Author-X-Name-Last: Braun
Author-Name: Rodrigo A. Wagner
Author-X-Name-First: Rodrigo A.
Author-X-Name-Last: Wagner
Title: Are there pricing spillovers within ETFs? Evidence from emerging market corporate bonds
Abstract: 
 Financial theories suggest that the entry of a new security into an exchange-traded fund (ETF) could impact the price of the other constituents of that ETF. We test these various theories using data from Emerging Market corporate bonds between 2012 and 2017. We find that the inclusion of a new bond into the ETF lowers the relative price of constituent bonds that were ex-ante similar to the entrant. Additionally, we find that part of this effect tends to be transitory. These facts also hold with most alternative measures of bond similarity and proxies for returns. Moreover, the effect is stronger for less liquid bonds and when the short-run ability to absorb this entry shock is more limited. Overall, our findings suggest that part of the effect is consistent with price-pressure models.
Journal: Applied Economics
Pages: 3567-3581
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2020.1855313
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855313
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3567-3581



Template-Type: ReDIF-Article 1.0
Author-Name: Cassandra Copeland
Author-X-Name-First: Cassandra
Author-X-Name-Last: Copeland
Author-Name: Henry Thompson
Author-X-Name-First: Henry
Author-X-Name-Last: Thompson
Title: Factor market competition including energy input in the US economy
Abstract: 
 This paper examines factor market competition in the US economy with quarterly 1973–2013 data for fixed capital assets, labour force, and energy Btu input. The translog production function is estimated directly to avoid the assumption of competitive pricing in factor share equations. Error correction estimates on yearly percentage changes for the difference stationary series are consistent with Hicks neutral technology. Capital is underpaid relative to marginal product. Energy is also underpaid and has an upward trending marginal product. In stark contrast, labour is overpaid relative to downward trending marginal product. Non-Competitive pricing due to binding quantity constraints characterize these factor markets.
Journal: Applied Economics
Pages: 3557-3566
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2020.1855311
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855311
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3557-3566

Template-Type: ReDIF-Article 1.0
Author-Name: Rospita Odorlina P. Situmorang
Author-X-Name-First: Rospita Odorlina P.
Author-X-Name-Last: Situmorang
Author-Name: Ming Chin Tang
Author-X-Name-First: Ming Chin
Author-X-Name-Last: Tang
Author-Name: Shu Chun Chang
Author-X-Name-First: Shu Chun
Author-X-Name-Last: Chang
Title: Purchase Intention on Sustainable products: A Case study on Free-Range Eggs in Taiwan
Abstract: 
 Increasing of awareness on healthy and friendly environmentally products such as free-range eggs has become a concern of consumers in over the world including for Taiwanese consumers. There are many motives of free-range egg purchase, but this study only discussed four aspects, i.e. health consciousness, food safety concern, animal welfare concern, and price. This study examined the importance of those aspects and examined the relationship with purchase intention. The study was conducted on 228 Taiwanese respondents through an online survey held on November 2020 and February 2021. This study found that health consciousness was the main factor for Taiwanese consumers to choose free-range eggs followed by food safety concern, price and animal welfare concern. Health consciousness, food safety concern and the concern to animal welfare positively influenced the purchase intention, while price did not significantly influence the purchase intention. Females, the higher income level, and the respondents that cook more frequently have higher intention to buy free-range eggs, while the differences in age, educational levels, and number of family members do not influence the purchase intention.
Journal: Applied Economics
Pages: 3751-3761
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2001423
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001423
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3751-3761



Template-Type: ReDIF-Article 1.0
Author-Name: Carina Goldbach
Author-X-Name-First: Carina
Author-X-Name-Last: Goldbach
Author-Name: Jörn Sickmann
Author-X-Name-First: Jörn
Author-X-Name-Last: Sickmann
Author-Name: Thomas Pitz
Author-X-Name-First: Thomas
Author-X-Name-Last: Pitz
Title: Sequential decision bias – evidence from grading exams
Abstract: 
 Human perception is very comparative. A misperception of random sequential processes, however, can influence the outcome of important decisions in many areas of daily life, including the evaluation of exams in higher education. We investigate this effect by using an extensive dataset of more than 20,000 examination results that is analysed on whether a student’s performance in an exam has an impact on the evaluation of the one following, e.g. whether a poor performance lets the following shine in a better light, resulting in a better-than-expected grade. We conclude that there is evidence for sequential decision biases that do not necessarily occur generally, but rather after streaks of extreme events. An even greater effect size is detected when limiting the sample to exams with a low variance in grades and to exams that were evaluated later in the exam correction sequence. Therefore, there is evidence that under certain conditions, past evaluations may impact on current evaluations of student performances. This study should raise awareness of biases in grading against the background of their importance in the assessment of students’ educational performances, the admission to consecutive study programmes and as a key metric in the evaluation of job candidates.
Journal: Applied Economics
Pages: 3727-3739
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1976390
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976390
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3727-3739



Template-Type: ReDIF-Article 1.0
Author-Name: Aichun Jiang
Author-X-Name-First: Aichun
Author-X-Name-Last: Jiang
Author-Name: Chuan Chen
Author-X-Name-First: Chuan
Author-X-Name-Last: Chen
Author-Name: Yibin Ao
Author-X-Name-First: Yibin
Author-X-Name-Last: Ao
Author-Name: Wenmei Zhou
Author-X-Name-First: Wenmei
Author-X-Name-Last: Zhou
Title: Measuring the Inclusive growth of rural areas in China
Abstract: 
 The stagnation of the development, poverty, and environmental deterioration are the three major problems of the world. China’s poverty problem is centred on rural areas. Inclusive growth was first proposed by the Asian Development Bank in 2007. Many scholars investigated the connotation and measurement of such growth. However, the attention devoted to the inclusive growth of rural areas in China is still lacking. The objective of this study is to construct an indicator system that measures the inclusive growth of these areas from 2004 to 2017 in four aspects, namely, economic growth, social equity, environmental sustainability, and infrastructure. The entropy weight and TOPSIS methods are used to evaluate the inclusive growth of rural areas in China. Results show that the inclusive growth index in rural China is steadily rising, and infrastructure has a significant effect on inclusive growth.
Journal: Applied Economics
Pages: 3695-3708
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1923640
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923640
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3695-3708



Template-Type: ReDIF-Article 1.0
Author-Name: Aidong Zhao
Author-X-Name-First: Aidong
Author-X-Name-Last: Zhao
Author-Name: Jinsheng Huang
Author-X-Name-First: Jinsheng
Author-X-Name-Last: Huang
Author-Name: Huub Ploegmakers
Author-X-Name-First: Huub
Author-X-Name-Last: Ploegmakers
Author-Name: Erwin van der Krabben
Author-X-Name-First: Erwin
Author-X-Name-Last: van der Krabben
Author-Name: Xianlei Ma
Author-X-Name-First: Xianlei
Author-X-Name-Last: Ma
Title: The impact of land price regulation on land-use intensity: evidence from Chinese minimum land price regulation policy
Abstract: 
 The minimum land price (MLP) regulation that China introduced in 2007 provides a quasi-experiment to investigate how government intervention in the land market influences the intensity with which industrial land is used, which has received limited attention in existing literature. Using a difference-in-difference strategy, our estimates show that an exogenous increase in the price of industrial land induced by the MLP regulation’s introduction significantly increased industrial land-use intensity by putting more capital on same amount of land. The findings from this paper therefore suggest that MLP regulation as an incentive-based policy instrument is effective for promoting land-use intensity.
Journal: Applied Economics
Pages: 3668-3677
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1971620
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1971620
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3668-3677



Template-Type: ReDIF-Article 1.0
Author-Name: Marialisa Mazzocchitti
Author-X-Name-First: Marialisa
Author-X-Name-Last: Mazzocchitti
Author-Name: Chrisovalantis Malesios
Author-X-Name-First: Chrisovalantis
Author-X-Name-Last: Malesios
Author-Name: Alessandro Sarra
Author-X-Name-First: Alessandro
Author-X-Name-Last: Sarra
Title: Spatio-temporal modelling of municipal waste management systems’ meta-efficiency scores
Abstract: 
 This paper describes an approach to measure the intensity and the territorial dispersion of spatial proximity effects, which affect efficiency scores obtained through data envelopment analysis in the field of municipal waste management systems (MWMSs). In particular, we show that these analyses cannot be conducted by relying on efficiency scores that are not comparable over time and treated as cross-sectional data, as is done in most previous studies. Instead, the use of panel data is a key element to obtain reliable results. We used a meta-frontier approach to obtain meta-efficiency scores comparable over time and a modified conditional autoregressive (CAR) model to provide an estimation of the intensity of spatial proximity effects. This approach was applied to data on 277 MWMSs located in the Italian region of Abruzzo. Our method provides useful information for policymakers. In particular, the areas in which stagnating and suboptimal performance can be expected over time can be identified by plotting over the regional territory the posterior medians of the random effects obtained by the spatial component of the CAR model together with the highly efficient municipalities. To improve efficiency, these areas require an active intervention by levels of government higher than the municipal level.
Journal: Applied Economics
Pages: 3709-3726
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1939855
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1939855
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3709-3726



Template-Type: ReDIF-Article 1.0
Author-Name: Tianyi Wang
Author-X-Name-First: Tianyi
Author-X-Name-Last: Wang
Author-Name: Sicong Cheng
Author-X-Name-First: Sicong
Author-X-Name-Last: Cheng
Author-Name: Fangsheng Yin
Author-X-Name-First: Fangsheng
Author-X-Name-Last: Yin
Author-Name: Mei Yu
Author-X-Name-First: Mei
Author-X-Name-Last: Yu
Title: Directly pricing VIX futures: the role of dynamic volatility and jump intensity
Abstract: 
 We extend the direct pricing framework and propose a new generalized model for VIX futures by adding the time-varying component volatility as well as jump intensity to the logarithm of underlying VIX series. We also switch to the normal jump component on which the simpler and faster analytical filter can be applied. Compared with the nested benchmark models, these extensions are supported by significant pricing performance improvements both in- and out-of-sample. In particular, our generalized model can reduce the pricing errors substantially in the high VIX level period and for long maturity contracts. Our research highlights the importance of those newly added features of the VIX series when pricing VIX derivatives.
Journal: Applied Economics
Pages: 3678-3694
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016592
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016592
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3678-3694



Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: The benefits of not living in a nursing home
Abstract: 
 We identify and value four categories of benefits of not living in a nursing home (NH). The four categories relate to the two components of a Quality Adjusted Life Year (QALY), which is the outcome effect for this evaluation. For each QALY component, the quality of a life year foregone and the loss of a life, NHs have a direct effect and an indirect effect as NHs increase dementia symptoms. Estimates of the QALY components are obtained from two fixed effects regression equations applied to a large national data set with quality of life and dementia symptoms as dependent variables. Valuation of the QALY effects is based on the value of a statistical life year literature. Because every category of QALY effect produces negative benefits, a fifth category of foregone benefits is the savings from not incurring expenses for a NH. The total losses are large, equal to $1.93 trillion.
Journal: Applied Economics
Pages: 3740-3750
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1983141
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983141
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3740-3750

Template-Type: ReDIF-Article 1.0
Author-Name: Feipeng Zhang
Author-X-Name-First: Feipeng
Author-X-Name-Last: Zhang
Author-Name: Yun Hong
Author-X-Name-First: Yun
Author-X-Name-Last: Hong
Author-Name: Yanhui Jiang
Author-X-Name-First: Yanhui
Author-X-Name-Last: Jiang
Author-Name: Jiayi Yu
Author-X-Name-First: Jiayi
Author-X-Name-Last: Yu
Title: Impact of national media reporting concerning COVID-19 on stock market in China: empirical evidence from a quantile regression
Abstract: 
 Using daily data from 20 January 2020 to 31 July 2020, we investigate the impact of national media crisis communication on stock market returns in China by employing the quantile regression method. By using Xinwen Lianbo (新闻联播) as a proxy for national media, we introduce two variables that can capture Xinwen Lianbo’s COVID-19 attention and tone. The results show a significant positive/negative impact of the media’s COVID-19 focus on contemporaneous stock market returns at high/low quantiles of daily returns. The impact of media’s tone toward COVID-19’s impact on contemporaneous daily stock market returns is also negative at low quantiles of daily returns. Xinwen Lianbo’s impact is mainly concentrated in the more contemporaneous overnight return rather than the intraday return. More serious cases of COVID-19 will aggravate (weaken) the impact of the national media’s tone at the lower (higher) quantile of overnight return. Finally, we explain our results by referring to psychology and cognition theory, including mood priming theory, mood as information theory and mood effects on the processing style model.
Journal: Applied Economics
Pages: 3861-3881
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016591
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016591
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3861-3881



Template-Type: ReDIF-Article 1.0
Author-Name: Aakanksha Shrawan
Author-X-Name-First: Aakanksha
Author-X-Name-Last: Shrawan
Author-Name: Amlendu Dubey
Author-X-Name-First: Amlendu
Author-X-Name-Last: Dubey
Title: A reassessment of the relationship between services and economic growth in low-income and lower-middle income countries: a non-linear approach
Abstract: 
 We test whether the service sector can contribute to economic growth in low-income and lower-middle income countries despite the likely presence of Baumol’s ‘cost disease’. We employ the non-linear auto-regressive distributed lag method, which investigates whether growth responds differently to a positive and negative change in the service sector’s share. By employing a sample of 62 countries from 1970–2019, we find that an increase in the sector’s share reduces short-run growth implying cost disease. In the long run, however, the results show that an increase in the sector’s share positively contributes to economic growth. Thus, the results support policy reforms that may strengthen service sector in these countries.
Journal: Applied Economics
Pages: 3795-3810
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1990847
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990847
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3795-3810



Template-Type: ReDIF-Article 1.0
Author-Name: Kei Sakata
Author-X-Name-First: Kei
Author-X-Name-Last: Sakata
Author-Name: Colin McKenzie
Author-X-Name-First: Colin
Author-X-Name-Last: McKenzie
Author-Name: Shinya Kajitani
Author-X-Name-First: Shinya
Author-X-Name-Last: Kajitani
Title: Informal care and savings
Abstract: 
 Using panel data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, this paper examines to what extent informal care provided by couples and single individuals affects their household savings. This paper is one of the first attempts to examine the relationship between informal care and savings. There are both negative and positive effects of informal care on wealth accumulation, but we do not know which of these effects dominate. We estimate quantile regression models and find that informal care provision has limited negative impacts on changes in household wealth formation. There was no effect of caring on wealth formation for the lower quantile and the negative effects are limited to the mid to high quantile groups.
Journal: Applied Economics
Pages: 3762-3776
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1980489
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980489
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3762-3776



Template-Type: ReDIF-Article 1.0
Author-Name: Yang-Ming Chang
Author-X-Name-First: Yang-Ming
Author-X-Name-Last: Chang
Author-Name: Manaf Sellak
Author-X-Name-First: Manaf
Author-X-Name-Last: Sellak
Title: A theory of competing interventions by external powers in intrastate conflicts: implications for war and armed peace
Abstract: 
 This paper presents a game-theoretic model of competing interventions in civil conflict. We analyze the conflict between an incumbent government (as defender) and its rebel group (as attacker) when the two parties receive military support from different external powers. In contrast to the traditional analysis of non-competing or biased intervention by a single third party, we first show how competition in external powers can strategically alter the outcome of the two-party conflict and then identify the conditions under which the defender launches an effective strategy to deter the attacker. We find that (i) when the stakes that the competing external powers have in their respective supported parties are equivalent, the amounts of military support endogenously offered by the external interveners are comparable. The government’s deterrence strategy is ineffective, and the fighting persists despite the warring parties’ valuations for political dominance being asymmetric. (ii) when the external power that supports the government has a higher stake than the competing external power that supports the rebel group, the government’s arming allocation can deter the rebellion. (iii) These results have implications for multi-power interventions so that the equilibrium outcome can be ‘armed peace’ or a prolonged war as observed in civil conflicts.
Journal: Applied Economics
Pages: 3811-3822
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016588
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016588
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3811-3822



Template-Type: ReDIF-Article 1.0
Author-Name: Abdoul‐Akim Wandaogo
Author-X-Name-First: Abdoul‐Akim
Author-X-Name-Last: Wandaogo
Title: Does digitalization improve government effectiveness? Evidence from developing and developed countries
Abstract: 
 This study aims to analyze the effect of digitalization on government effectiveness in developing and developed countries. It uses a panel methodology with data from 138 countries between 2006 and 2016. The results suggest that a government’s use of information and communication technologies (ICT) improves its effectiveness in both developing and developed countries. However, this effect is stronger in developed than in developing countries. Moreover, we find that the effect of aggregate ICT use by individuals, businesses, and government on overall government effectiveness is greater than that of individual use by each individually. The results are robust after several tests (reverse causality, dynamic effect, sensitivity analysis, heterogeneities, and alternative measurements). These results highlight the fact that governments could fully benefit from digitalization by adopting policies that promote access to and use of ICT at all levels of the economy, that is, the government itself, businesses, and individuals.
Journal: Applied Economics
Pages: 3840-3860
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016590
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016590
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3840-3860



Template-Type: ReDIF-Article 1.0
Author-Name: Maimouna Gaye
Author-X-Name-First: Maimouna
Author-X-Name-Last: Gaye
Title: Job satisfaction: towards internalizing the feeling of inequality between men and women
Abstract: 
 The more pronounced job satisfaction among women is generally observed despite their less favorable work situation compared to men. However, regression analysis alone in a sample of non-comparable men and women may be subject to model misspecification. Our work uses an innovative matching procedure, Coarsened Exact Matching (CEM), to address this issue and analyze the reasons for the differential in job satisfaction between men and women with the same characteristics. Data from the Sixth European Working Conditions Survey are considered including five measures of satisfaction with career development prospects taken as a new measure. The results show that women are more satisfied with job security, while they seem less satisfied with their career development prospects. A similar level of satisfaction is observed between men and women with regard to social relations, overall satisfaction and salary. Exceptionally, the youngest women, or those with higher education, or employed at a higher hierarchical level, or working in male-dominated sectors, expressed levels of satisfaction that were the opposite of the other women. This is likely due to the fact that these women align their job expectations with those of their male counterparts.
Journal: Applied Economics
Pages: 3823-3839
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016589
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016589
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3823-3839



Template-Type: ReDIF-Article 1.0
Author-Name: Cesare A.F. Riillo
Author-X-Name-First: Cesare A.F.
Author-X-Name-Last: Riillo
Author-Name: Ivana Mijatovic
Author-X-Name-First: Ivana
Author-X-Name-Last: Mijatovic
Author-Name: Henk J. de Vries
Author-X-Name-First: Henk J.
Author-X-Name-Last: de Vries
Title: Certification to compensate gender prejudice – Analysis on impact of management system certification on export
Abstract: 
 Management system certification signals that the organization meets international standards, which provides a certain confidence in the company. This confidence is in particular needed for exporting companies in developing countries. Because the business world is dominated by men, female leadership might be another reason to have less confidence in a company. Women-led companies may therefore benefit more from certification. Therefore, this study empirically tests the impact of certification on export, and the moderating effect of female leadership. We use data from enterprise surveys conducted by the World Bank in 2013 that include 4111 firms from 25 Central and Eastern European countries in transition. We implement a recursive bivariate probit model and an extensive sensitivity analysis to account for endogeneity issues. Results confirm that certification and export are positively correlated. Firms managed by females benefit more from certification based on international standards than firms managed by men, especially in the service sector. This suggests that certification compensates for the possibly negative connotations of female leadership. Female managers may consider implementing a management system and get it certified, resulting in a competitive advantage in export markets. Our findings provide food for thought for purchase managers – are they free from prejudice?
Journal: Applied Economics
Pages: 3777-3794
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1990842
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990842
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3777-3794

Template-Type: ReDIF-Article 1.0
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Eduardo Dacillo Roca
Author-X-Name-First: Eduardo Dacillo
Author-X-Name-Last: Roca
Title: China’s geopolitical risk and international financial markets: evidence from Canada
Abstract: 
 Given the high level of economic and financial globalization, geopolitical tensions can disrupt international trade and negatively influence financial markets. China, a global economic power, has been at the center stage of recent geopolitical tensions with widespread economic implications. We empirically investigate the effect of China’s geopolitical risk on Canada’s equity markets. The results show a persistent impact on market returns and volatility, most prominently on the resources and energy sectors. Even though China plays a smaller role than the US as a trading partner, China’s geopolitical risk significantly affects the Canadian stock market and its component sectors. Our results, therefore, support the need for a constructive approach toward alleviating global geopolitical tensions and for the development of geopolitical risk hedging strategies such as insurance and investment in commodities at the country and investor levels.
Journal: Applied Economics
Pages: 3953-3971
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2019185
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2019185
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3953-3971



Template-Type: ReDIF-Article 1.0
Author-Name: Juhee Hwang
Author-X-Name-First: Juhee
Author-X-Name-Last: Hwang
Title: Corporate social responsibility and non-GAAP reporting
Abstract: 
 This study examines the relationship between a firm’s corporate social responsibility (CSR) performance and non-GAAP earnings disclosure. I find that firms with good CSR performance (i.e. CSR firms) are more likely to disclose non-GAAP earnings than firms with poor CSR performance (i.e. non-CSR firms). More importantly, I find that CSR firms provide more informative non-GAAP earnings than non-CSR firms. Furthermore, CSR firms’ decisions to disclose non-GAAP earnings are less affected by the incentives to meet earnings benchmarks or constraints on other earnings management tools. These findings are consistent with the notion that CSR firms communicate with stakeholders about their sustainable earnings through non-GAAP reporting.
Journal: Applied Economics
Pages: 3883-3902
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2017400
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2017400
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3883-3902



Template-Type: ReDIF-Article 1.0
Author-Name: Felipe Vasquez-Lavin
Author-X-Name-First: Felipe
Author-X-Name-Last: Vasquez-Lavin
Author-Name: Luna Bratti
Author-X-Name-First: Luna
Author-X-Name-Last: Bratti
Author-Name: Sergio Orrego
Author-X-Name-First: Sergio
Author-X-Name-Last: Orrego
Author-Name: Manuel Barrientos
Author-X-Name-First: Manuel
Author-X-Name-Last: Barrientos
Title: Assessing the use of pseudo-panels to estimate the value of statistical life
Abstract: 
 In this paper, we estimate the Value of Statistical Life (VSL) for Chile, Colombia, and the United States using a hedonic wage model and a pseudo-panel approach. The VSL is a major component of the cost-benefit analysis of many policies, including public health, transportation safety, and environmental regulation. Using pseudo-panels, also known as synthetic cohort data, to estimate the VSL is relevant for low- and middle-income countries because many do not have panel data but do have repeated cross-sectional information. We conclude that the pseudo-panel approach is a suitable alternative for estimating the VSL when panel data is unavailable.
Journal: Applied Economics
Pages: 3972-3988
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2019186
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2019186
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3972-3988



Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Ayadi
Author-X-Name-First: Ahmed
Author-X-Name-Last: Ayadi
Title: BREXIT: equity market contagion and transmission channels
Abstract: 
 This paper investigates the transmission of shocks during the period of the withdrawal of the United Kingdom from the European Union (BREXIT) across twenty-two equity markets. We use an augmented multifactor model to detect the transmission of contagion effects from the United States and Western Europe to Brazil, Russia, India, China and South Africa, commonly known as ‘the BRICS’ countries, during BREXIT, i.e. the exit of Great Britain from the European Union. Our model captures the unexpected returns and disentangles the simple correlations due to fundamentals and contagion. Our results show that crisis did not have the same effects on the BRICS countries in terms of contamination. More precisely, evidence of fundamental contagion is documented between stock markets. Moreover, Russia was the most contaminated market, and China was the least affected market. Furthermore, the findings prove that the stock market contagion between these countries was transmitted by some channels that have been omitted from the theory.
Journal: Applied Economics
Pages: 3933-3952
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2018128
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2018128
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3933-3952



Template-Type: ReDIF-Article 1.0
Author-Name: Takeshi Miyazaki
Author-X-Name-First: Takeshi
Author-X-Name-Last: Miyazaki
Title: Does ethnic diversity affect public goods provision? Evidence from boundary reform of local governments
Abstract: 
 This study explores how ethnic fractionalization affects the provision of public goods using Japanese city data, and attempts to address potential endogeneity by using boundary reforms of local governments. The results show that an increase in ethnic fractionalization has a significantly negative effect on spending on productive public goods (roads and bridges) and positive effects on spending on nonproductive public goods (sanitation and trash collection). However, ethnic fractionalization is unrelated to the provision of other local public goods such as education and welfare.
Journal: Applied Economics
Pages: 3903-3923
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2017401
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2017401
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3903-3923



Template-Type: ReDIF-Article 1.0
Author-Name: Semei Coronado
Author-X-Name-First: Semei
Author-X-Name-Last: Coronado
Author-Name: Jose N. Martinez
Author-X-Name-First: Jose N.
Author-X-Name-Last: Martinez
Author-Name: Rafael Romero-Meza
Author-X-Name-First: Rafael
Author-X-Name-Last: Romero-Meza
Title: Time-varying multivariate causality among infectious disease pandemic and emerging financial markets: the case of the Latin American stock and exchange markets
Abstract: 
 The purpose of this article is to study the unidirectional causality from the Infectious Disease Equity Market Volatility Tracker (EMV-ID), towards the volatility of five of the most important Latin American stock and Exchange markets. For this, volatility is captured through the DCC-GARCH t-Copula method. In addition, the time-varying Granger multivariate causality test (TV-GC) and the classical Granger causality test (GC) are applied. It is found that, with both methodologies, EMV-ID causes both series, which highlights the importance of having this new indicator for the analysis of the different agents involved in financial markets, among them, regulators, companies and traders in particular. Our results are consistent with the evidence of other research findings about the predictive power of the EMV-ID index on oil price volatility and some European equity markets, and the positive link between EMV-ID and the time-varying of return connectedness across gold, crude oil, world equities, currencies and bonds.
Journal: Applied Economics
Pages: 3924-3932
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2018127
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2018127
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3924-3932



Template-Type: ReDIF-Article 1.0
Author-Name: Hao Gao
Author-X-Name-First: Hao
Author-X-Name-Last: Gao
Author-Name: Jing He
Author-X-Name-First: Jing
Author-X-Name-Last: He
Author-Name: Yong Li
Author-X-Name-First: Yong
Author-X-Name-Last: Li
Title: Media spotlight, corporate sustainability and the cost of debt
Abstract: 
 In this study, we examine the effect of media spotlight of corporate environmental, social, and governance (ESG) performance on corporate debt financing. We use the most influential media firm’s rankings of corporate ESG performance from 2009 to 2017 as a proxy of media spotlight. Positive media ESG spotlight significantly reduces firms’ cost of debt through enhancing reputation in supply chains, reducing financial risk and increasing corporate transparency. Media ESG spotlight plays a more important role for firms with poor corporate governance and firms located in provinces with more serious pollution.
Journal: Applied Economics
Pages: 3989-4005
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2020710
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020710
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3989-4005

Template-Type: ReDIF-Article 1.0
Author-Name: Marta Arespa
Author-X-Name-First: Marta
Author-X-Name-Last: Arespa
Author-Name: Juan González-Alegre
Author-X-Name-First: Juan
Author-X-Name-Last: González-Alegre
Title: The determinants of inﬂation volatility: a panel data analysis for US-product categories
Abstract: 
 Some macroeconomic dimensions like the economic business cycle, the exchange rate movements when the degree of country openness is signiﬁcant, or the level of inﬂation are often considered to explain measured-inﬂation dynamics. However, inﬂation volatility may also be aﬀected by statistical agencies methodological changes. This paper explores both potential explanations in a panel data for 100 United States CPI-U subcategories. Using both unconditional and conditional variances, we ﬁnd that crucial changes in how agencies consider quality adjustment in products, together with the macroeconomic variables help to understand CPI volatility over time, both in the short-run and in the long-run.
Journal: Applied Economics
Pages: 4060-4083
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2020714
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020714
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4060-4083



Template-Type: ReDIF-Article 1.0
Author-Name: Ivo J. M. Arnold
Author-X-Name-First: Ivo J. M.
Author-X-Name-Last: Arnold
Title: Monetary overhang in times of covid: evidence from the euro area
Abstract: 
 This paper investigates the determinants of the monetary overhang in the euro area since the outbreak of covid-19. To this end, we estimate a long-run panel money demand function for 18 euro area countries over the period from 2003 to 2019. We calculate the monetary overhang since 2020 as the difference between the actual money stock and the value implied by the money demand function. Making use of cross-sectional heterogeneity and time variation in government responses to covid-19, we relate the monetary overhang to covid-19 response indicators, as well as to confidence indicators. We find that the monetary overhang is significantly related to the level of economic support, the stringency of the containment policy and the economic sentiment indicator.
Journal: Applied Economics
Pages: 4030-4042
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2020711
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020711
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4030-4042



Template-Type: ReDIF-Article 1.0
Author-Name: Difei Ouyang
Author-X-Name-First: Difei
Author-X-Name-Last: Ouyang
Title: State-owned banks in credit stimulus: evidence from China
Abstract: 
 This paper studies the role of the four largest, traditional, state-owned banks (Big Four SOBs) during China’s nationwide credit stimulus years (2009—10). We find that cities with a larger share of branches owned by the Big Four SOBs experienced larger local lending growth in credit stimulus. While the industrial/tradable sector was hit hardest by the global financial crisis, Big Four SOBs only fostered the expansion of the tertiary sector, which further led to temporary GDP growth. Consistently, we find that listed companies in cities with greater Big Four branch density also received more loan funding and invested more, yet their profitability showed no improvement in both the short and long run.
Journal: Applied Economics
Pages: 4084-4100
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2021135
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2021135
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4084-4100



Template-Type: ReDIF-Article 1.0
Author-Name: Lijia Mo
Author-X-Name-First: Lijia
Author-X-Name-Last: Mo
Author-Name: James Yae
Author-X-Name-First: James
Author-X-Name-Last: Yae
Title: Lending Club meets Zillow: local housing prices and default risk of peer-to-peer loans
Abstract: 
 We investigate the role of local housing prices in the default of peer-to-peer (P2P) loans. From the data of Lending Club and Zillow, we find that borrowers, who reside at a ZIP code where median home price is one standard deviation higher than the cross-sectional average, show a 0.75% lower default probability, given the loan interest rate into consideration. However, this effect of ZIP-code-level home price on the default probability is three times stronger for homeowner borrowers with mortgages: the marginal probability jumps from 0.75% to 2.13%. Higher home price improves a homeowner borrower’s credit and wealth, and such an effect is highly leveraged by a mortgage, ceteris paribus. This channel is an interaction between borrower-specific and local information, which is distinct from the well-known socio-economic channel. Our empirical results provide an important implication on the reputation or feedback mechanisms in P2P loan markets.
Journal: Applied Economics
Pages: 4101-4112
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2022089
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2022089
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4101-4112



Template-Type: ReDIF-Article 1.0
Author-Name: Ernest Boffy-Ramirez
Author-X-Name-First: Ernest
Author-X-Name-Last: Boffy-Ramirez
Title: Push or Pull? Measuring the labor supply response to the minimum wage using an individual-level panel
Abstract: 
 For individuals in low-wage labour markets, an increase in the minimum wage can theoretically pull them into or push them out of the labour force. If increases raise expected wages beyond reservation wages, marginal individuals could enter the labour force and begin searching for employment. If increases lower expected wages, marginal individuals already in the labour force could exit. Leveraging revised individual identifiers in the U.S. Current Population Survey, this research estimates the contemporaneous effects of minimum wage increases on labour force participation. The use of within-person variation, short individual panels, and flexible controls for time create an empirical strategy that mitigates potential biases from unobserved constant individual-level heterogeneity and time-varying factors. This research finds that minimum wage changes tend to impact the youngest individuals, but there is substantial heterogeneity in responses by age, race/ethnicity, and sex. There is stronger evidence of pull effects amongst young white men and Latinos, and weaker evidence amongst young Black women and older Latinas. Weak evidence of push effects is observed amongst younger white women, younger Latinos, and older Latinas. This research highlights heterogeneous labour force participation responses to further inform our understanding of search behaviour and labour market churn.
Journal: Applied Economics
Pages: 4043-4059
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2020713
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020713
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4043-4059



Template-Type: ReDIF-Article 1.0
Author-Name: T. Agasisti
Author-X-Name-First: T.
Author-X-Name-Last: Agasisti
Author-Name: M. Cannistrà
Author-X-Name-First: M.
Author-X-Name-Last: Cannistrà
Author-Name: M. Soncin
Author-X-Name-First: M.
Author-X-Name-Last: Soncin
Author-Name: D. Marazzina
Author-X-Name-First: D.
Author-X-Name-Last: Marazzina
Title: Financial Education during COVID-19 - Assessing the effectiveness of an online programme in a high school
Abstract: 
 Acknowledging the importance of financial literacy in modern societies, schools are implementing different activities to teach basic concepts to young pupils. This work aims at investigating the effectiveness of an intervention of financial education in an Italian high school, conducted during the period of school closure due to COVID-19. Through a rigorous experimental design based on a Randomized Controlled Trial, this study analyses the effects of attending a one-month financial education course, provided through an online classroom mode. The empirical analysis combines econometric techniques for policy evaluation and machine learning algorithms. The intervention succeeded in substantially improving students’ financial knowledge, suggesting a potential role of digital learning for scaling up financial education initiatives.
Journal: Applied Economics
Pages: 4006-4029
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016586
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016586
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4006-4029



Template-Type: ReDIF-Article 1.0
Author-Name: Afef Kesraoui
Author-X-Name-First: Afef
Author-X-Name-Last: Kesraoui
Author-Name: Mohamed Lachaab
Author-X-Name-First: Mohamed
Author-X-Name-Last: Lachaab
Author-Name: Abdelwahed Omri
Author-X-Name-First: Abdelwahed
Author-X-Name-Last: Omri
Title: The impact of credit risk and liquidity risk on bank margins during economic fluctuations: evidence from MENA countries with a dual banking system
Abstract: 
 This study investigates the simultaneous impact of the major sources of bank default, namely credit risk and liquidity risk on price-cost margins during economic fluctuations in the MENA countries with a dual banking system. We use an annually balanced data set including 30 conventional banks and 14 Islamic banks from 9 countries covering the period 2004–2020. Our findings highlight the importance of the two risk factors on determining banks’ cost of intermediation. The most interesting result is that their effects on bank margins are sensitive to economic fluctuations. More specifically, both risk factors have more significant effect on price-cost margins during good economic times. One important implication of our findings is that the authorities and policymakers should pay more attention to liquidity and risks during booms.
Journal: Applied Economics
Pages: 4113-4130
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2022090
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2022090
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4113-4130

Template-Type: ReDIF-Article 1.0
Author-Name: Amar Iqbal Anwar
Author-X-Name-First: Amar Iqbal
Author-X-Name-Last: Anwar
Author-Name: Colin F. Mang
Author-X-Name-First: Colin F.
Author-X-Name-Last: Mang
Title: Do remittances cause Dutch Disease? A meta-analytic review
Abstract: 
 This is the first meta-study to analyze the effect size of remittances on the real exchange rate (RER). Using 426 estimates from 67 studies, we found that remittances appreciate RER; however, the effect size differs across countries. Compared to global estimates, the mean effect of remittances on RER is significantly larger for East Asia and the Pacific, whereas the same nexus is found to be significantly smaller for Latin America and the Caribbean. Furthermore, the synthesized effect of remittances on RER is found to be significantly positive for lower-middle-income countries. Our empirical examination shows that publication selection bias is less likely in the literature. We found a genuine eﬀect of remittances on RER appreciation. This study also provides policy recommendations and presents suggestions for future research in the field.
Journal: Applied Economics
Pages: 4131-4153
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.2022091
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2022091
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4131-4153



Template-Type: ReDIF-Article 1.0
Author-Name: Bochao Zhang
Author-X-Name-First: Bochao
Author-X-Name-Last: Zhang
Author-Name: Baizhen Zhang
Author-X-Name-First: Baizhen
Author-X-Name-Last: Zhang
Author-Name: Junpeng Di
Author-X-Name-First: Junpeng
Author-X-Name-Last: Di
Author-Name: Qing Han
Author-X-Name-First: Qing
Author-X-Name-Last: Han
Title: The strategic behavior of Chinese enterprises using R&D subsidies: game model and empirical research
Abstract: 
 This paper constructs a game model of the strategic behavior of enterprises using R&D subsidies and government supervision and decision-making under the condition of information asymmetry. The derivation of the model shows that when a company and the government engage in a short-term single game, the more abundant the company’s own funds and the higher the rate of return of non-subsidized projects, the greater the possibility that the company will embezzle R&D subsidies with higher the embezzlement ratio. The simultaneous implementation of R&D subsidy policies and tax incentives will weaken the government’s enthusiasm for the supervision of enterprises and increase the possibility of enterprises embezzling R&D subsidies. For the empirical analysis, based on the data of industrial enterprises, the propensity score matching method is used to construct the proxy variables of corporate appropriation and non-innovative project profitability, When the research hypothesis from the theoretical part of this paper is tested, it is found that the profit rate of self-owned funds and non-innovative projects is the main factor affecting whether a company will embezzle subsidies. The results show an inverted U-shaped relationship, indicating that the greater the possibility of enterprises embezzling R&D subsidies, the more restrained the R&D investment of enterprises will be.
Journal: Applied Economics
Pages: 4187-4202
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.2023089
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2023089
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4187-4202



Template-Type: ReDIF-Article 1.0
Author-Name: Laura Beaudin
Author-X-Name-First: Laura
Author-X-Name-Last: Beaudin
Author-Name: Aziz N. Berdiev
Author-X-Name-First: Aziz N.
Author-X-Name-Last: Berdiev
Title: The cost of winning: Does athletic expenditure impact the probability that teams advance to the NCAA Division I Basketball Tournament? A comparison of men’s and women’s outcomes
Abstract: 
 We estimate the relationship between Division I NCAA basketball program expenditure and team success. Results indicate that increases in expenditure are significantly associated with increases in the probability that teams advance to the end-of-season tournament. However, an increase in expenditure impacts teams differently across the division. Specifically, those teams which spend the least on their basketball programs have the most to gain. Results also suggest that increases in team expenditure impact women’s teams more than men’s teams. Given that the women’s league is less competitive, these results might imply that a more balanced expenditure could lead to a more competitive league.
Journal: Applied Economics
Pages: 4154-4169
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.2022092
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2022092
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4154-4169



Template-Type: ReDIF-Article 1.0
Author-Name: Haejung Na
Author-X-Name-First: Haejung
Author-X-Name-Last: Na
Author-Name: Soonho Kim
Author-X-Name-First: Soonho
Author-X-Name-Last: Kim
Title: The impact of globalization and the legal system on stock market quality
Abstract: 
 This study examines how globalization affects stock market quality, whether investor protection serves as a channel in this relationship, and how the channel effect varies depending on the legal system. Our empirical analysis confirms that there is a positive causal relationship between globalization and market quality. Also, since we find that globalization induces stronger investor protection, we disentangle the component of investor protection predicted by globalization. Our analysis shows that the globalization-induced component of investor protection has a significantly positive effect on market quality, which demonstrates the role of investor protection as a channel. Finally, we show that these relationships among globalization, investor protection, and market quality are present in civil law countries but not in common law countries. This illustrates that globalization enhances financial market quality via a stronger ability to effect institutional change and investor protection in civil law countries.
Journal: Applied Economics
Pages: 4203-4212
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2026869
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2026869
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4203-4212



Template-Type: ReDIF-Article 1.0
Author-Name: Xiuzhen Shi
Author-X-Name-First: Xiuzhen
Author-X-Name-Last: Shi
Author-Name: Zekai He
Author-X-Name-First: Zekai
Author-X-Name-Last: He
Title: Housing demolition and financial market investment: evidence from Chinese household data
Abstract: 
 This paper estimates the impact of housing demolitions on households’ investment behaviour in financial markets in China using a large microeconomic data set. This study provides new evidence on the effect of demolitions on families’ investment behaviour from a natural experiment created by housing demolition and compensation events. We find that housing demolitions significantly increase households’ participation in risky financial markets. Households’ portfolio choices in responses to demolitions vary substantially across household characteristics. The affected households in urban areas and those with cash compensation are more likely to participate in risky asset markets, while the affected low-income families decrease investment in financial markets. To understand the underlying mechanisms, we propose a framework of how housing demolitions increase households’ financial asset allocation. Our results indicate that changes in precautionary motive for savings and risk preference hold substantial importance.
Journal: Applied Economics
Pages: 4213-4226
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2027332
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2027332
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4213-4226



Template-Type: ReDIF-Article 1.0
Author-Name: Zidong An
Author-X-Name-First: Zidong
Author-X-Name-Last: An
Author-Name: John Bluedorn
Author-X-Name-First: John
Author-X-Name-Last: Bluedorn
Author-Name: Gabriele Ciminelli
Author-X-Name-First: Gabriele
Author-X-Name-Last: Ciminelli
Title: Okun’s Law, development, and demographics: differences in the cyclical sensitivities of unemployment across economy and worker groups
Abstract: 
 The negative and stable relationship between an economy’s aggregate demand conditions and overall unemployment is well-documented. We show that there is a large degree of heterogeneity in the cyclical sensitivities of unemployment across worker and economy groups. First, unemployment is more than twice as sensitive to aggregate demand in advanced as in emerging market and developing economies. Second, youth’s unemployment is twice as sensitive as that of adults’. Third, women’s unemployment is significantly less sensitive to demand than men’s in advanced economies. We also present evidence that the cyclical sensitivity of unemployment during the 2020 COVID-19 recession decreased in advanced economies, but not emerging market and developing economies. Together, these findings point to the highly unequal impacts of the business cycle across worker and economy groups.
Journal: Applied Economics
Pages: 4227-4239
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2027333
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2027333
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4227-4239



Template-Type: ReDIF-Article 1.0
Author-Name: Ling Guo
Author-X-Name-First: Ling
Author-X-Name-Last: Guo
Author-Name: Xiaoni Jiang
Author-X-Name-First: Xiaoni
Author-X-Name-Last: Jiang
Title: Decentralization of environmental management and enterprises’ environmental technology innovation: evidence from China
Abstract: 
 We construct an environmental decentralization index and use spatial econometric modeling to test the government’s role in promoting environmental technology innovation at the enterprise level. The results show that a moderate increase in the degree of environmental decentralization is conducive to promoting local enterprises’ environmental innovation and avoiding excessive distortions caused by externalities. Further investigation reveals that the effect is more pronounced when local tax competition is taken into account. However, administrative decentralization and supervision decentralization have different effects on enterprises’ environmental innovation. An increase in administrative decentralization has a negative impact on enterprise innovation, and environmental supervision should be more focused on the central government, which can help avoid excessive distortion caused by externalities. Our analysis is of certain reference value for understanding the influence of rational allocation of environmental protection functions among different levels of government on enterprises’ environmental innovation activities.
Journal: Applied Economics
Pages: 4170-4186
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.2022093
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2022093
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4170-4186

Template-Type: ReDIF-Article 1.0
Author-Name: Gene Hyungjin Kim
Author-X-Name-First: Gene Hyungjin
Author-X-Name-Last: Kim
Author-Name: Hyunchul Kim
Author-X-Name-First: Hyunchul
Author-X-Name-Last: Kim
Title: Estimating switching costs for telecommunications services and bundles
Abstract: 
 We develop a consumer level demand model of telecommunications and broadcasting services taking into account the exhaustive set of alternatives available to consumers, including bundled services. We then estimate the switching costs associated with bundling. Previous studies are confined to choices of only one or two services, rather than addressing interrelationships among different services made possible through bundling. We find that our approach improves the accuracy of switching cost estimates compared with when the choice sets are restricted in demand models. Our results also indicate that switching costs incurred with bundling are substantial, making up approximately 65% of monthly service costs.
Journal: Applied Economics
Pages: 4356-4373
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030046
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030046
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4356-4373



Template-Type: ReDIF-Article 1.0
Author-Name: Thomas H. W. Ziesemer
Author-X-Name-First: Thomas H. W.
Author-X-Name-Last: Ziesemer
Title: Foreign R&D spillovers to the USA and strategic reactions
Abstract: 
 This paper serves three purposes, using a vector-error-correction model (VECM) to analyse the effects of permanent changes in R&D variables. First, we re-consider the traditional result of zero or negative foreign R&D spillovers to US productivity from private and public foreign R&D stocks. Both have a positive and statistically significant effect on labour-augmenting technical change (LATC) and public R&D in the USA. Moreover, US private R&D reacts positively to foreign private R&D and negatively to foreign public R&D shocks. Second, we also find new results for the effects of changes of US R&D. Foreign public and private R&D react positively to US public R&D. All the mentioned variables react positively to changes in US private R&D. Third, based on the time profile of the simulated VECM estimate, we calculate the sum of discounted net gains for (i) additional private and public US R&D, and (ii) for policies reacting to foreign private and public R&D shocks with additional domestic private and public R&D. Additional private and public US R&D expenditures have very high internal rates of return and are profitable also in reaction to shocks from foreign R&D. All LATC reactions are transitional, suggesting semi-endogenous growth for the USA.
Journal: Applied Economics
Pages: 4274-4291
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030042
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030042
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4274-4291



Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Schleich
Author-X-Name-First: Joachim
Author-X-Name-Last: Schleich
Author-Name: Marie-Charlotte Guetlein
Author-X-Name-First: Marie-Charlotte
Author-X-Name-Last: Guetlein
Author-Name: Gengyang Tu
Author-X-Name-First: Gengyang
Author-X-Name-Last: Tu
Author-Name: Corinne Faure
Author-X-Name-First: Corinne
Author-X-Name-Last: Faure
Title: Household preferences for private versus public subsidies for new heating systems: insights from a multi-country discrete choice experiment
Abstract: 
 This paper employs demographically representative discrete choice experiments (DCEs) with owner occupiers in Poland, Sweden, and the United Kingdom (UK) to estimate the effects of subsidies, heating cost savings, installation time (reflecting ‘hassle costs’) and warranty length on owner occupiersʻ propensity to invest in a new heating system. In particular, the paper explores whether owner occupiers value subsidies received from public funding sources differently than subsidies received from private funding sources. The results from estimating mixed logit models suggest that respondents not only value subsidies for new heating systems because they decrease the net price, but they also value receiving a subsidy per se. For participants from Sweden (but not from Poland and the UK), this non-monetary value was found to be higher for subsidies offered by a public than by a private funding source. The results for heating cost savings in the three countries imply implicit discount rates between about 11 and 13%. We further find that respondents in Poland dislike longer installation times, and that respondents in all three countries value longer warranty times.
Journal: Applied Economics
Pages: 4292-4309
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030043
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030043
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4292-4309



Template-Type: ReDIF-Article 1.0
Author-Name: Fabiano Compagnucci
Author-X-Name-First: Fabiano
Author-X-Name-Last: Compagnucci
Author-Name: Andrea Gentili
Author-X-Name-First: Andrea
Author-X-Name-Last: Gentili
Author-Name: Enzo Valentini
Author-X-Name-First: Enzo
Author-X-Name-Last: Valentini
Author-Name: Mauro Gallegati
Author-X-Name-First: Mauro
Author-X-Name-Last: Gallegati
Title: Asymmetric responses to shocks: the role of structural change on resilience of the Euro area regions
Abstract: 
 Building on the notion of adaptive resilience, and sourcing from the Eurostat regional database on 150 NUTS 2 EURO regions over the period 1998–2019, we show that both industrial mix and regional specialization played a key role in the asymmetric reaction of European regional labor markets to the 2008 crisis and the following 2011–12 sovereign debt crisis. Standard and spatial econometric analyses confirm that the pre-crisis structural composition of regional labor markets resulted in the speed of the post-crisis recovery. Recovery was further affected by the kind of structural change each region experienced after the crisis, depending on their different capacity to host knowledge intensive and hi-tech activities. Based on this evidence, national austerity policies may have exacerbated regional divergence within and between EU countries.
Journal: Applied Economics
Pages: 4324-4355
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030045
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030045
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4324-4355



Template-Type: ReDIF-Article 1.0
Author-Name: Xiaotuo Qiao
Author-X-Name-First: Xiaotuo
Author-X-Name-Last: Qiao
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Jun Li
Author-X-Name-First: Jun
Author-X-Name-Last: Li
Title: The asset growth effect in a mean-variance analysis
Abstract: 
 We study the asset growth effect in a mean-variance analysis. In the asset growth deciles, we uncover a U-shaped relation between asset growth and return volatility and hump-shaped relation between asset growth and Sharpe ratio, with the bottom of the volatility and peak of the Sharpe ratio both around stocks with zero asset growths. The pattern is robust to finer portfolio grids and portfolios sorted by the growth rates of asset components, including current and long-term asset, book equity, and debt; it also exists among stocks with different sizes, idiosyncratic volatilities, and market betas. The two-factor structure of the asset growth portfolios are shown to be crucial in understanding these patterns.
Journal: Applied Economics
Pages: 4259-4273
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030041
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030041
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4259-4273



Template-Type: ReDIF-Article 1.0
Author-Name: Abraham Agyemang
Author-X-Name-First: Abraham
Author-X-Name-Last: Agyemang
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Russell Gregory-Allen
Author-X-Name-First: Russell
Author-X-Name-Last: Gregory-Allen
Title: Specialization in national output and international cross-listing
Abstract: 
 This study utilizes a sample of 1779 firms cross-listed across 28 OECD countries to explore how specialization in national output impacts international cross-listing decisions. We find that output specialization is an essential consideration in both the decision to cross-list and the choice of host market. Our results show that specialization in national output augments cross-listing and that firms from specialized home countries cross-list in less specialized host markets. The findings, especially at the firm level, suggest that firms seek opportunities to diversify funding sources when cross-listing, further highlighted by the choice of host market.
Journal: Applied Economics
Pages: 4241-4258
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030040
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030040
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4241-4258



Template-Type: ReDIF-Article 1.0
Author-Name: Changlin Zeng
Author-X-Name-First: Changlin
Author-X-Name-Last: Zeng
Author-Name: Leng Yu
Author-X-Name-First: Leng
Author-X-Name-Last: Yu
Title: Do China’s Modern Agricultural Demonstration Zones work? Evidence from agricultural products processing companies
Abstract: 
 This paper examines the effect of place-based agricultural industry policy on firm-level development, focusing on the establishment of Modern Agricultural Demonstration Zones (MADZ) in China. Using a panel data of agricultural products processing companies from 2007 to 2013, we apply difference in difference (DID) method and find that the policy has significantly increased the employment, output and assets. The government’s selection of MADZ may not be random, leading to endogenous problems. We deal with this selection bias on site and strengthen our estimation results with a series of robustness tests. Based on the mechanism analysis, the effect of MADZ comes from tax deductions and agglomeration effects. In addition, we use the data of listed companies to verify the role of MADZ in promoting the total factor productivity (TFP) of agricultural companies.
Journal: Applied Economics
Pages: 4310-4323
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030044
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030044
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4310-4323

Template-Type: ReDIF-Article 1.0
Author-Name: Mabruk Billah
Author-X-Name-First: Mabruk
Author-X-Name-Last: Billah
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Title: Spillovers on sectoral sukuk returns: evidence from country level analysis
Abstract: 
 Even though numerous studies have looked at the spillover effects in Shari’ah compliant equity returns, little attention has been paid to exploring global shocks’ transmission to the sukuk (Islamic Bond) returns. Our paper attempts to fill this void by quantifying spillovers from developed countries on the sukuk returns of Islamic countries. In this paper, we create sukuk indices for financial and non-financial companies on country basis and, examine the global linkages with those sukuk indices. We have found that global sukuk markets affect the sukuk indices at different levels. A clear distinction would be that global sukuk markets have a substantial impact on the spillovers of the sukuk issued by financial corporations, while sukuk issued by non-financial corporations are more affected by the overall spillover effect the sukuk markets than spillovers from the global Islamic bond markets. Sub-sample analysis during the COVID-19 pandemic yield interesting findings, show that spillover of returns on the sukuk issued by financial corporations during the COVID-19 pandemic was higher than the sukuk issued by non-financial corporations. These findings are mostly consistent for all markets included in our sample and evidently, urge portfolio holders to make clear distinctions between sukuk issued by financial and non-financial corporations.
Journal: Applied Economics
Pages: 4402-4432
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030049
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030049
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4402-4432



Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohang Ren
Author-X-Name-First: Xiaohang
Author-X-Name-Last: Ren
Author-Name: Yue Dou
Author-X-Name-First: Yue
Author-X-Name-Last: Dou
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Yiying Li
Author-X-Name-First: Yiying
Author-X-Name-Last: Li
Title: Information spillover and market connectedness: multi-scale quantile-on-quantile analysis of the crude oil and carbon markets
Abstract: 
 The asymmetric interdependence of carbon futures and crude oil futures prices in different market conditions remains unsettled in the literature. This study aims to quantify the crude oil price impacts on carbon price across the carbon-oil distribution in Phase III. For this purpose, we employ two novel methods, namely the quantile Granger causality test and the quantile-on-quantile regression methods. To detect the short-, medium-, and long-term impacts of the crude oil price on carbon price, we further decompose the sample series into six components using the wavelet method. Accordingly, we are able to estimate the nexus between carbon futures and crude oil futures prices in different time and frequency domains. Through a series of robustness checks, we find our results stable and robust, indicating that the crude oil impact on carbon price is asymmetric, conditional on the whole carbon and crude oil price distributions. Furthermore, the crude oil impact varies across different time scales, and shows negative signs throughout the whole carbon price distribution in the short term and basically positive signs in the medium and long term. Based on the above findings, we highlight several important policy implications to promote better market regulation and portfolio optimization.
Journal: Applied Economics
Pages: 4465-4485
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030855
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030855
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4465-4485



Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Javid
Author-X-Name-First: Muhammad
Author-X-Name-Last: Javid
Author-Name: Fakhri J. Hasanov
Author-X-Name-First: Fakhri J.
Author-X-Name-Last: Hasanov
Author-Name: Carlo Andrea Bollino
Author-X-Name-First: Carlo Andrea
Author-X-Name-Last: Bollino
Author-Name: Marzio Galeotti
Author-X-Name-First: Marzio
Author-X-Name-Last: Galeotti
Title: Sectoral investment analysis for Saudi Arabia
Abstract: 
 This study aims to investigate the determinants of short- and long-run private investment behavior in Saudi Arabia for eight non-oil sectors. Saudi Arabia is currently proceeding with its Vision 2030 reform plan, which aims to significantly increase the private sector’s contribution to the country’s gross domestic product. Thus, analyzing private investments at the sectoral level is important for Saudi Arabia. Such an analysis can provide policymakers with a deeper understanding of potential opportunities for boosting private sector growth. This study therefore uses a cointegration and equilibrium correction approach to empirically analyze investments by sector over the period from 1989–2017. We identify a long-run relationship among investments, output and the real interest rate for all sectors except agriculture. Additionally, the real exchange rate has long-run relationships with investments in the agriculture, non-oil manufacturing and other services sectors. This finding implies that sector-specific tailored investment policies are preferable to a one-size-fits-all investment policy.
Journal: Applied Economics
Pages: 4486-4500
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030856
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030856
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4486-4500



Template-Type: ReDIF-Article 1.0
Author-Name: Srikant Devaraj
Author-X-Name-First: Srikant
Author-X-Name-Last: Devaraj
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Igor Pereira
Author-X-Name-First: Igor
Author-X-Name-Last: Pereira
Title: In-utero exposure to local COVID-19 incidence and infant birthweight in Brazil
Abstract: 
 In this article, we investigate whether in-utero exposure to municipal-level COVID-19 incidence rates in Brazil was associated with lower infant birth weight. To lower endogeneity related to conception during COVID-19, we include infants who were conceived before and born after, the first official case of COVID-19 in Brazil, 26 February 2020. Using the administrative natality data of infants, in-utero exposure to local COVID-19 incidence rate did not affect infant birth weight, and the estimates are robust to heterogeneities by mother’s demographic and socioeconomic characteristics. Findings have implications for the effect of in-utero exposure to local COVID-19 incidence rates and birth weight.
Journal: Applied Economics
Pages: 4449-4464
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030461
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030461
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4449-4464



Template-Type: ReDIF-Article 1.0
Author-Name: Havvanur Feyza Kaya
Author-X-Name-First: Havvanur Feyza
Author-X-Name-Last: Kaya
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: Estimating an optimal macroeconomic uncertainty index for Australia
Abstract: 
 In this article, an optimal macroeconomic uncertainty index is constructed for the Australian economy. This index is derived from a small structural macroeconomic model. The structural model is first estimated using GMM to extract the parameter estimates, which are then used to initialize maximum likelihood techniques in order to obtain the optimal coefficient values for the relevant variables. The relevant variables are then weighted by the obtained optimal coefficients and, finally, are aggregated to produce the optimal macroeconomic uncertainty index for Australian economy. The empirical results show that the uncertainty index constructed is a good indicator of the optimal economic conditions in Australia, providing a useful tool to assist the Reserve Bank of Australia in its decision-making process.
Journal: Applied Economics
Pages: 4374-4383
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2020.1862749
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1862749
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4374-4383



Template-Type: ReDIF-Article 1.0
Author-Name: Mona Said
Author-X-Name-First: Mona
Author-X-Name-Last: Said
Author-Name: Rami Galal
Author-X-Name-First: Rami
Author-X-Name-Last: Galal
Author-Name: Mina Sami
Author-X-Name-First: Mina
Author-X-Name-Last: Sami
Title: Gender diversity, productivity, and wages in private Egyptian firms
Abstract: 
 Womenʻs employment is not evenly distributed across sectors and firms and this variance in gender diversity can impact firmsʻ productivity and wages in both positive and negative ways according to theory. Using new economic census data from Egypt, this paper explores the relationship between gender diversity, productivity, and wages. Our first finding is that gender diversity is positively associated with productivity and wages in the knowledge-intensive service sector. Our second finding is that there is a negative or no association between gender diversity and productivity and wages among less knowledge-intensive service and both high- and low-tech manufacturing firms. These relationships are robust across different industry classifications and measures of diversity.
Journal: Applied Economics
Pages: 4433-4448
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030460
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030460
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4433-4448



Template-Type: ReDIF-Article 1.0
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Huan Zheng
Author-X-Name-First: Huan
Author-X-Name-Last: Zheng
Title: Do environmental regulations affect firm financial distress in China? Evidence from stock markets
Abstract: 
 This study explores how environmental regulations affected firm financial distress in China from 1999 to 2018, when the national strategy experienced a major adjustment from economic development only to sustainable growth. Instead of targeting specific environmental policy, we divide environmental regulations for firms into two major types, including energy conservation and pollution reduction, and discuss the influences of the overall levels of Chinese environmental regulations in the last two decades. We find that these regulations were negatively associated with firm performance, positively related to the possibility of financial distress, and negatively associated with the length of distress time. Our additional tests also show that the two types of environmental regulations had different influences on firm financial distress for various firm characteristics, including state ownership and industries. The empirical results remain robust when alternative measures of financial distress and potential endogenous issues are controlled.
Journal: Applied Economics
Pages: 4384-4401
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030048
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030048
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4384-4401

Template-Type: ReDIF-Article 1.0
Author-Name: Jacob A. Bikker
Author-X-Name-First: Jacob A.
Author-X-Name-Last: Bikker
Author-Name: Jeroen J. Meringa
Author-X-Name-First: Jeroen J.
Author-X-Name-Last: Meringa
Title: Have scale effects on cost margins of pension fund investment portfolios disappeared?
Abstract: 
 Investment costs of pension funds are crucial for their returns. Consolidation in the pension fund market proceeds continuously, often with cost savings as the main argument. Unused economies of scale in pension fund investment costs, however, have declined over the years to values close to zero, except for very small pension funds. This paper investigates investment economies of scale in the Netherlands and pays special attention to the non-linear relationship between investment costs and sizes of pension funds. Furthermore, investment cost margins are disaggregated into three cost types and into six asset categories. Performance fees are in particular paid for complex asset categories held by large pension funds. They reduce the traditional-scale economy results for the entire portfolio. Cost savings by consolidation is still possible but is very limited.
Journal: Applied Economics
Pages: 4501-4518
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030857
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030857
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4501-4518



Template-Type: ReDIF-Article 1.0
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: João Pedro Neves Maia
Author-X-Name-First: João Pedro Neves
Author-X-Name-Last: Maia
Title: Interest rate expectations based on Taylor rule versus central bank’s survey: which performs better in a large emerging economy?
Abstract: 
 We analyzed rationality, content, and anchoring of the monetary policy interest rate expectations (for 3, 6, 9, and 12 months ahead), taking into account the Brazilian data from January 2003 to July 2020. We consider expectations based on two perspectives: expectations gathered from a Taylor rule and market expectations obtained from the survey carried out by the central bank. The findings point out that, concerning rationality and anchoring, the interest rate expectations based on a Taylor rule performed better than expectations from the Central Bank of Brazil’s (CBB) survey, even when we consider the Top 5 forecasters. Moreover, our analysis shows that the content of monetary policy interest rate expectations based on a Taylor rule and CBB’s survey (including Top 5 forecasters) is different. Thus, they may be seen as complementary sources of information on the future interest rate. Concerning anchoring of the monetary policy interest rate expectations, the CBB’s survey expectations are not anchored, while the result for the expectations based on a Taylor rule shows the opposite for horizons up to 9 months ahead.
Journal: Applied Economics
Pages: 4532-4544
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2031859
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2031859
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4532-4544



Template-Type: ReDIF-Article 1.0
Author-Name: Fotini Economou
Author-X-Name-First: Fotini
Author-X-Name-Last: Economou
Author-Name: Ioanna Kountouri
Author-X-Name-First: Ioanna
Author-X-Name-Last: Kountouri
Author-Name: Yannis Panagopoulos
Author-X-Name-First: Yannis
Author-X-Name-Last: Panagopoulos
Author-Name: Georgia Skintzi
Author-X-Name-First: Georgia
Author-X-Name-Last: Skintzi
Author-Name: Ekaterini Tsouma
Author-X-Name-First: Ekaterini
Author-X-Name-Last: Tsouma
Title: Estimating excise tax revenue elasticity and buoyancy for tobacco products and alcoholic beverages: evidence from Greece
Abstract: 
 The aim of this paper is to estimate excise tax revenue elasticity and buoyancy for tobacco products and alcoholic beverages in Greece, for the period 2000–2020. To this end, we employ core and more extended error correction models. Overall, our empirical results do not confirm the appropriateness of the unity assumption. Policy measures seem to affect excise tax revenues in the long run mostly through the tax-to-base relation. In most cases, excise tax revenues seem to have a larger reaction to changes in the tax base in the short run, which could be associated with different asymmetric effects, in particular the crisis/adjustment and the COVID-19 lockdown effects. Our findings indicate several differences in excise tax revenue elasticity and buoyancy between the two product categories, suggesting that individual product categories should be examined separately for a more precise estimate of tax revenue sensitivity. This implication may assist policy makers to effectively design the related tax policies, especially during abnormal periods like the COVID-19 pandemic, and derive more accurate tax revenue forecasts.
Journal: Applied Economics
Pages: 4557-4576
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2032581
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2032581
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4557-4576



Template-Type: ReDIF-Article 1.0
Author-Name: Ionela-Cătălina Zamfir
Author-X-Name-First: Ionela-Cătălina
Author-X-Name-Last: Zamfir
Author-Name: Ana-Maria Mihaela Iordache
Author-X-Name-First: Ana-Maria Mihaela
Author-X-Name-Last: Iordache
Title: The influences of covid-19 pandemic on macroeconomic indexes for European countries
Abstract: 
 The Covid-19 pandemic had a major impact in the entire world, both sanitary and economic. The purpose of this study is to analyse the European countries from this point of view. The main economic indicators related to import, wages, labour productivity, consumption, taxes, gross domestic product (GDP), as well as variables related to Covid-19 pandemic measures were considered in order to estimate the impact that pandemic measures have in economy. Principal component analysis was performed in order to reduce the dataset dimensionality and to create new indicators. Selected European countries are characterized and compared using principal components analysis outputs while regression is used to identify an influence of independent variables on GDP. The main results show that, comparing European countries economic situation in 2020 with the previous 2 years and considering variables that show the adopted closure measures, the Covid-19 pandemic have influenced the GDP from European countries.
Journal: Applied Economics
Pages: 4519-4531
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2031858
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2031858
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4519-4531



Template-Type: ReDIF-Article 1.0
Author-Name: Kuang-Cheng Chai
Author-X-Name-First: Kuang-Cheng
Author-X-Name-Last: Chai
Author-Name: Hao-Ran Lan
Author-X-Name-First: Hao-Ran
Author-X-Name-Last: Lan
Author-Name: Jia-Wei Zhu
Author-X-Name-First: Jia-Wei
Author-X-Name-Last: Zhu
Author-Name: Zhen-Xin Cui
Author-X-Name-First: Zhen-Xin
Author-X-Name-Last: Cui
Author-Name: Zhi-Yong Sui
Author-X-Name-First: Zhi-Yong
Author-X-Name-Last: Sui
Title: Impacts of founder management on the operational efficiency of enterprises in different regions in China
Abstract: 
 Under the influence of the severe downturn in the global economic situation, China’s economy is currently in a difficult and long transition period. How an enterprise maintains high operational efficiency is especially important. As a key management position, the founder has a strong sense of corporate responsibility. Therefore, this study conducted an empirical analysis of the impact of founder management on the enterprises operational efficiency using data on private listed companies in China’s from 2010 to 2019. The results showed that founder management could improve the operational efficiency of enterprises compared with non-founder management. The economic gap between China’s western region and the central and eastern regions has not significantly improved, which will directly affect the development of private enterprises in the western region. We compared the enterprises in western region with non-western regions, and showed that enterprises managed by founders in the western region, compared with those in non-western regions, have reduced positive effects of founder management on their operating efficiency. In China, these conclusions have important theoretical value and practical significance for clarifying the relationship between founder management and operating efficiency because the system is different from that of western countries.
Journal: Applied Economics
Pages: 4577-4585
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2032582
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2032582
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4577-4585



Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Ting Peng
Author-X-Name-First: Yi-Ting
Author-X-Name-Last: Peng
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Omid Ranjbar
Author-X-Name-First: Omid
Author-X-Name-Last: Ranjbar
Title: Re-Investigating the degree of persistence of U.S. economic policy uncertainty using the Fourier non-linear quantile unit root test
Abstract: 
 This research tests the mean reversion properties of the U.S. EPU (economic policy uncertainty) index and its 11 sub-categories using the Fourier non-linear quantile unit root test over the period 1985M1-2020M12. The results indicate the following. (1) The U.S. EPU index responds asymmetrically to shocks, in which positive shocks are more long-lasting than negative shocks. (2) Monetary, fiscal, and trade policies and also national security and regulation series behave like unit root processes in all quartiles, whereas by contrast financial regulation and sovereign debt exhibit stationary behaviour over all quantiles. (3) Government spending, health care, national security, and entitlement programmes present stationary processes in low/high quantiles.
Journal: Applied Economics
Pages: 4586-4595
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2032584
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2032584
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4586-4595



Template-Type: ReDIF-Article 1.0
Author-Name: Helmi Hamdi
Author-X-Name-First: Helmi
Author-X-Name-Last: Hamdi
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Title: Improving the environmental quality: Should African countries locally innovate or import innovation?
Abstract: 
 Does environmental quality get benefits from local innovation or the imported one? To answer this question, we investigate a sample of African countries throughout 2009–2018, using the panel dynamic System Generalized Method of Moment (SGMM) as an econometric approach. The empirical findings indicate that local innovation significantly improves the environmental quality while the imported one has harmful effects. The robustness check confirms this conclusion and proves the positive effects of local innovation in preserving the environment quality.
Journal: Applied Economics
Pages: 4545-4556
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2031860
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2031860
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4545-4556

Template-Type: ReDIF-Article 1.0
Author-Name: Pei-Ling Sheu
Author-X-Name-First: Pei-Ling
Author-X-Name-Last: Sheu
Author-Name: Shu-Chun Chang
Author-X-Name-First: Shu-Chun
Author-X-Name-Last: Chang
Title: Relationship of service quality dimensions, customer satisfaction and loyalty in e-commerce: a case study of the Shopee App
Abstract: 
 The development of information technology and mobile device functions have increased the number of online shopping applications, which has increased the competition to attract customers. Service quality has been traced as an important factor that influences consumers’ buying behaviour. This present study aimed to assess the difference of four dimensions of service quality (efficiency, fulfilment, system availability, and privacy services) and to examine the relationship of service quality dimensions towards customers’ satisfaction and loyalty on Shopee App. The data collection conducted from 03rd January to 31 January 2019 were carried out by an online survey. The data were collected from 373 samples. The data were analysed using ANOVA to evaluate the difference in service quality dimensions and regression analysis to examine the relationship among service quality, satisfaction, and loyalty. This study found that the significant difference in service quality dimensions with the highest importance to customers was efficiency, followed by fulfilment, system availability, and privacy. All service quality dimensions positively influenced the customer’s satisfaction. Furthermore, the efficiency, fulfilment, and privacy services were the significant factors of customers’ loyalty to use the Shopee App. Lastly, consumers’ satisfaction positively influenced the consumers’ loyalty.
Journal: Applied Economics
Pages: 4597-4607
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.1980198
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980198
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4597-4607



Template-Type: ReDIF-Article 1.0
Author-Name: Rami Zeitun
Author-X-Name-First: Rami
Author-X-Name-Last: Zeitun
Author-Name: Mohamed Goaied
Author-X-Name-First: Mohamed
Author-X-Name-Last: Goaied
Title: The nexus between debt structure, firm performance, and the financial crisis: non-linear panel data evidence from Japan
Abstract: 
 This study seeks to analyze the non-linear relationship between a firm’s debt structure and performance based on evidence from Japan through the use of a panel data fixed effects model for a sample of 1,670 listed firms. This is the first study that looks at the effect of the short-term debt threshold on corporate performance, as well as the influence of the 2008 global financial crisis (GFC) on the nonlinear effect of debt structure on corporate performance. Moreover, it represents an initial endeavor that uses cross-industry comparisons to scrutinize the nonlinear effect of debt structure on the performance of Japanese companies. This study’s findings reveal the presence of a nonlinear impact of debt with short-term maturity on corporate performance. In addition, there is a U-shaped relationship between firm performance and short-term debt, suggesting that a firm’s profit decreases at lower levels of short-term debt (below 45.2%) and increases at higher levels of debt with short-term maturity. Moreover, this short-term debt threshold was affected significantly by the financial crisis.
Journal: Applied Economics
Pages: 4681-4699
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2033680
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2033680
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4681-4699



Template-Type: ReDIF-Article 1.0
Author-Name: Zhe Song
Author-X-Name-First: Zhe
Author-X-Name-Last: Song
Author-Name: Chen Hao
Author-X-Name-First: Chen
Author-X-Name-Last: Hao
Title: Housing price and criminal crime in China: direct and indirect influence
Abstract: 
 The aim of the present work is to focus on the increased number of criminal crimes from the perspective of the rising housing price in China. Based on the theory of crime economics, the article analyzed the direct and indirect influence channel through which the housing prices may have impacts on criminal crimes. The paper collected the panel data of 27 province-level regions in China from 2004 to 2017 and verified the hypotheses by using fixed effect model, mediating effect model and spatial Dubin model. Our study offered the following conclusions: 1. The rise in housing price is a generative impetus for the frequent occurrence of the criminal offenses. 2. Consumption gap serves as the mediating variable between housing price and criminal crime. 3. There is a spatial correlation between housing price and criminal crime in China. Finally, the paper proposed relevant suggestions based on the above conclusions.
Journal: Applied Economics
Pages: 4647-4663
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2033678
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2033678
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4647-4663



Template-Type: ReDIF-Article 1.0
Author-Name: Markus Brueckner
Author-X-Name-First: Markus
Author-X-Name-Last: Brueckner
Author-Name: Ngo Van Long
Author-X-Name-First: Ngo
Author-X-Name-Last: Van Long
Author-Name: Joaquin Vespignani
Author-X-Name-First: Joaquin
Author-X-Name-Last: Vespignani
Title: Trade, education, and income inequality
Abstract: 
 This paper examines the relationship between countries’ bilateral trade with the United States that is not due to gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the population are educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non-gravity trade has no significant effect on income inequality in countries that are world leaders in education.
Journal: Applied Economics
Pages: 4608-4631
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2027862
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2027862
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4608-4631



Template-Type: ReDIF-Article 1.0
Author-Name: Sónia R. Bentes
Author-X-Name-First: Sónia R.
Author-X-Name-Last: Bentes
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Title: The impact of COVID-19 on gold seasonality
Abstract: 
 This study investigates the impact of COVID-19 on the seasonality of gold returns by means of an asymmetric EGARCH model (Exponential GARCH). We find that the so-called ‘autumn effect’, or the traditional seasonal increase in gold returns in fall, vanishes and even shows a reverse pattern during the COVID-19 pandemic. We ascribe this phenomenon to the decaying demand for gold, which substantially decreased in the third quarter of 2020. In contrast, we find no evidence of seasonal effects in gold volatility, which is in line with earlier researches on this topic. Our results also confirm the positive asymmetric effect of gold volatility.
Journal: Applied Economics
Pages: 4700-4710
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2033681
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2033681
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4700-4710



Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: James W. Kolari
Author-X-Name-First: James W.
Author-X-Name-Last: Kolari
Author-Name: Joachim Niang
Author-X-Name-First: Joachim
Author-X-Name-Last: Niang
Title: Man versus machine: on artificial intelligence and hedge funds performance
Abstract: 
 Employing partially hand-collected data, sample hedge funds are formed into four categories depending on their level of automation. We find that hedge funds with the highest level of automation outperform other hedge funds with more reliance on human involvement. Also, we find that a man versus machine zero-cost strategy that is long hedge funds portfolio with highest level of automation and short those with highest level of human involvement yields a highly significant spread of at least 50 basis points per month. We conclude that automation plays an important role in the profitability of the hedge fund industry.
Journal: Applied Economics
Pages: 4632-4646
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2032585
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2032585
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4632-4646



Template-Type: ReDIF-Article 1.0
Author-Name: Won-Sik Hwang
Author-X-Name-First: Won-Sik
Author-X-Name-Last: Hwang
Author-Name: Chanyoung Hong
Author-X-Name-First: Chanyoung
Author-X-Name-Last: Hong
Author-Name: Inha Oh
Author-X-Name-First: Inha
Author-X-Name-Last: Oh
Author-Name: Yeongjun Yeo
Author-X-Name-First: Yeongjun
Author-X-Name-Last: Yeo
Title: Assessing the economy-wide impacts of public R&D support options based on a computable general equilibrium model: focusing on types of fiscal incentives and beneficiaries
Abstract: 
 This study conducted quantitative comparisons of various public R&D support options using a CGE model. The analysis considered four different options by varying the types of fiscal incentives and the scope of beneficiaries concerning the firm size. The findings indicate that direct subsidy is more effective in spurring private R&D investments than indirect tax incentives. In addition, selective R&D support toward small and medium enterprises is found to induce balanced growth among industries. In summary, the simulation results suggest that R&D support under the direct subsidy scheme aimed at SMEs has the potential to achieve a higher equilibrium state within the Korean economy. This study confirms that the government should carefully design the R&D promotion policy by ensuring that direct R&D inducement effects are transmitted to industrial output growth with a diversified industrial structure and higher knowledge spillover effects.
Journal: Applied Economics
Pages: 4664-4680
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2033679
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2033679
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4664-4680

Template-Type: ReDIF-Article 1.0
Author-Name: Seungyeon Cho
Author-X-Name-First: Seungyeon
Author-X-Name-Last: Cho
Title: Financial literacy and its relation to lottery gambling consumption
Abstract: 
 This study uses restricted-version data from the 2018 state-by-state survey of the National Financial Capability Study to investigate the relationship between financial literacy and lottery consumption frequency. To control for the potential endogeneity of financial literacy, I employ the ordered probit model with an endogenous regressor by instrumenting the average education level of a zip-code area for financial literacy. The results indicate that an increase in financial literacy significantly reduces the lottery consumption of those who play with moderate frequency, while no marked curbing effects are found for heavy lottery players. This suggests that different policies are needed to reduce lottery consumption for those who engage with moderate frequency and those who engage with high frequency.
Journal: Applied Economics
Pages: 4725-4731
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2035669
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2035669
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4725-4731



Template-Type: ReDIF-Article 1.0
Author-Name: Di Gong
Author-X-Name-First: Di
Author-X-Name-Last: Gong
Author-Name: Zongxin Qian
Author-X-Name-First: Zongxin
Author-X-Name-Last: Qian
Title: Inflation targeting and financial crisis
Abstract: 
 We study the average treatment effect of inflation targeting on the likelihood of financial crisis with a large panel of countries over 1980–2017. To address the self-selection problem of inflation targeting, we adopt propensity score matching. Various matching estimators show consistent evidence that inflation targeting has significantly reduced the probability of a financial crisis. When decomposing financial crisis into various types, the effects are pronounced for the banking crisis, inflation crisis, external debt crisis, and stock crash. Our results are largely unaltered to a battery of robustness checks when controlling for legal origins, governance quality, financial development, capital account openness, fiscal balance, debt-to-GDP ratio, financial regulations, and central bank independence. This paper suggests that price-stability-oriented monetary policy frameworks, such as inflation targeting, also have non-negligible ‘side effects’ on financial stability.
Journal: Applied Economics
Pages: 4782-4795
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036685
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036685
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4782-4795



Template-Type: ReDIF-Article 1.0
Author-Name: Martin Alfaro
Author-X-Name-First: Martin
Author-X-Name-Last: Alfaro
Title: Assessing gains of trade in monopolistic competition under the presence of industry leaders
Abstract: 
 A recent literature has documented a widespread rise of superstar firms. This is at odds with the simplifying assumption of a continuum of firms, predominant in International Trade. In this paper, we assess its consequences by identifying the magnitude and direction in which gains of trade depart from monopolistic competition once we account for leading firms. With this goal, we extend the Melitz model by incorporating a revenue threshold such that truly negligible firms are modelled as in Melitz, while the largest ones are treated as non-negligible firms that earn positive profits. Firm-level data for several countries show that accounting for leaders entails greater gains of trade in all cases, with differences of up to 20%. The outcome is explained by an additional benefit of reallocating resources towards more productive firms, not captured by the Melitz model: increases in aggregate income through positive effects on profits.
Journal: Applied Economics
Pages: 4711-4724
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2021.1994915
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994915
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4711-4724



Template-Type: ReDIF-Article 1.0
Author-Name: Qing (Sophie) Wang
Author-X-Name-First: Qing (Sophie)
Author-X-Name-Last: Wang
Author-Name: Shaojie Lai
Author-X-Name-First: Shaojie
Author-X-Name-Last: Lai
Author-Name: Xiaping (Jerry) Cao
Author-X-Name-First: Xiaping (Jerry)
Author-X-Name-Last: Cao
Author-Name: Shiang Liu
Author-X-Name-First: Shiang
Author-X-Name-Last: Liu
Title: The effect of institutional investors’ site visits: evidence on corporate cash holdings
Abstract: 
 This study examines the impact of institutional investors’ site visits (SVs) on corporate cash holdings by using a unique dataset of SVs in China during the period of 2012–2019. We find that SVs significantly increase the level of cash holdings, and the result remains robust after addressing endogeneity concerns and selection bias. The positive impact of SVs on cash holding is more pronounced if a firm has a lower information quality, confirming that SVs facilitate information distribution between managers and investors and thus allowing more cash holding. Further analyses show that firms rely greatly on equity issues and internal cash flows for cash savings, and SVs increase the value of cash for shareholders. Collectively, our findings suggest a new effect of institutional investors’ site visits.
Journal: Applied Economics
Pages: 4767-4781
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036321
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036321
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4767-4781



Template-Type: ReDIF-Article 1.0
Author-Name: Lexin Zhao
Author-X-Name-First: Lexin
Author-X-Name-Last: Zhao
Author-Name: Qianbin Feng
Author-X-Name-First: Qianbin
Author-X-Name-Last: Feng
Author-Name: Wen-Quan Hu
Author-X-Name-First: Wen-Quan
Author-X-Name-Last: Hu
Title: Investment incentives and labor share: evidence from accelerated depreciation policy in China
Abstract: 
 This paper studies the impact of Chinaʻs accelerated depreciation policy (ADP) that was enacted in 2014 on labor share. We explore a firm-level dataset from Chinaʻs industrial enterprise database and estimate the policy effects using a difference-in-differences framework. We find that the ADP apparently reduces the labor share of the treated firms compared to the control firms, which is a net effect jointly driven by the capital deepening and skill structure upgrading channels. Among these two channels, the former is dominant and has negative effects on labor share, while the latter is positively related to the labor share. We also demonstrate that the firms with less financial constraints experience a more profound capital deepening process and a larger decline in labor share after policy enactment. These results suggest that the widespread use of investment tax incentives may be one of the reasons for the decline in global labor share in recent years.
Journal: Applied Economics
Pages: 4751-4766
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036320
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036320
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4751-4766



Template-Type: ReDIF-Article 1.0
Author-Name: Kyoungwon Mo
Author-X-Name-First: Kyoungwon
Author-X-Name-Last: Mo
Author-Name: Younghyo Song
Author-X-Name-First: Younghyo
Author-X-Name-Last: Song
Author-Name: Soo Yeon Park
Author-X-Name-First: Soo Yeon
Author-X-Name-Last: Park
Title: Mutual fund investment, group-affiliation, and stock price crash risk: evidence from Korea
Abstract: 
 This study examines how mutual funds affect future stock price crash risk in the capital market. Particularly, we focus on investigating the relationship between mutual funds affiliated with chaebol groups and subsequent stock price crash risk. We find that mutual funds have a significantly positive effect on future stock price crash risk. We also observe a significantly negative relationship between group-affiliated mutual funds and subsequent stock price crash risk.
Journal: Applied Economics
Pages: 4796-4811
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036686
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036686
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4796-4811



Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Niklas Schmelmer
Author-X-Name-First: Niklas
Author-X-Name-Last: Schmelmer
Title: The effects of greenfield foreign direct investment and cross‐border mergers and acquisitions on energy intensity in upper-middle income countries and low- and lower-middle income countries
Abstract: 
 This study examines the effects of greenfield foreign direct investment (FDI) and cross‐border mergers and acquisitions (M&As) on energy intensity for a sample of 35 upper-middle-income countries (UMICs) and a sample of 49 low- and lower-middle-income countries (LLMICs). It is the first to examine the energy intensity effects of greenfield FDI and cross‐border M&As for subgroups of developing countries with different levels of income. It is also the first study of its kind to use stationary and non-stationary panel methods. The main findings are: first, both greenfield FDI and cross-border M&As have an insignificant impact on energy intensity in LLMICs, and second, while the effect of cross-border M&As on energy intensity is insignificant in UMICs, greenfield FDI exerts a negative and significant impact on energy intensity in UMICs.
Journal: Applied Economics
Pages: 4732-4750
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2035670
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2035670
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4732-4750

Template-Type: ReDIF-Article 1.0
Author-Name: Imane El Ouadghiri
Author-X-Name-First: Imane
Author-X-Name-Last: El Ouadghiri
Author-Name: Elias Erragragui
Author-X-Name-First: Elias
Author-X-Name-Last: Erragragui
Author-Name: Jamil Jaballah
Author-X-Name-First: Jamil
Author-X-Name-Last: Jaballah
Author-Name: Jonathan Peillex
Author-X-Name-First: Jonathan
Author-X-Name-Last: Peillex
Title: Institutional investor attention and stock market volatility and liquidity: international evidence
Abstract: 
 In this paper, we examine the influence of the daily institutional investor attention to particular stocks on stock volatility and liquidity. The institutional investor attention is measured from the number of times that users of Bloomberg terminal, who are mostly institutional investors, search for or read articles on a specific stock. Relying on a large international dataset of approximately a million daily observations over the period 2011–2020 from nine countries (Canada, France, Germany, Japan, Russia, South Korea, Switzerland, the UK, and the US), we find that this recent measure of institutional investor attention has a strong positive effect on stock volatility and liquidity. Confirmed by a battery of robustness tests, our findings suggest that this continuous barometer of attention by institutional investors can be used by financial practitioners to predict future stock volatility and liquidity.
Journal: Applied Economics
Pages: 4839-4854
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036689
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036689
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4839-4854



Template-Type: ReDIF-Article 1.0
Author-Name: Amanjot Singh
Author-X-Name-First: Amanjot
Author-X-Name-Last: Singh
Title: Does trade credit financing matter for stock returns in times of crisis? Evidence from the COVID-19 stock market crisis
Abstract: 
 We examine the role of trade credit financing as a latent feature that becomes important during a crisis period, especially in the wake of the COVID-19 pandemic. Using a sample of 2,092 US firms, our findings support that shareholders pay additional attention to firmsʻ pre-crisis reliance on trade credit financing during a crisis period. While the prior literature document a positive relationship, we find evidence that trade credit financing is negatively related to stock market returns of US firms around the COVID-19-induced market crisis. This negative relationship is robust to several sensitivity tests and restricted to firms with: (1) financial constraints; (2) lower reliance on external financing; (3) higher short-term debt; and (4) higher labor intensity and labor adjustment costs. Trade credit financing contains information about firmsʻ possible financial constraints, external financing, short-term debt, and information asymmetry.
Journal: Applied Economics
Pages: 4855-4873
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036690
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036690
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4855-4873



Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Ghulam Mustafa
Author-X-Name-First: Ghulam
Author-X-Name-Last: Mustafa
Author-Name: Shafaq Malik
Author-X-Name-First: Shafaq
Author-X-Name-Last: Malik
Title: COVID-19 pandemic, stock returns, and volatility: the role of the vaccination program in Canada
Abstract: 
 This paper examines how stock returns and volatility in the Canadian stock market have been affected by both the COVID-19 pandemic and the associated vaccination program. The empirical analysis is based on the generalized autoregressive conditionally heteroskedastic model which explicitly allows the inclusion of information on the COVID-19 pandemic and the vaccination program. The analysis uses daily Canadian equity returns and volatility, spanning the period 27 January 2020, to 31 August 2021. The findings provide evidence that the COVID-19 pandemic exerts a significant negative impact on the mean of Canadian stock returns and a positive impact on their volatility. In contrast, the findings provide novel evidence that the vaccination program in Canada has reversed these detrimental effects.
Journal: Applied Economics
Pages: 4825-4838
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036688
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036688
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4825-4838



Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim
Author-X-Name-Last: Idi Cheffou
Title: The COVID-19 pandemic and ethical stock markets: further evidence of moral shock
Abstract: 
 The aim of this study is twofold. First, we assess the evolution of stock returns for two classes of ethical investments—Islamic and sustainable funds—from September 2001–January 2021. This is the first study of the financial performance of ethical investments in a period covering technological (the dot-com bubble in 2000), financial (the 2008 financial crisis), and healthcare shocks (the COVID-19). Second, we analyze the dynamics of the financial returns of conventional and ethical ethnic markets in the COVID-19 context and model the impact of COVID-19 news. We perform different time-varying tests to apprehend market reactions to the COVID-19 pandemic. We present two interesting results. First, the COVID-19 pandemic has had a time-varying impact on the stock market. Basically, a close to zero effect at the early stage of the pandemic, followed by a negative and significant effect during the first wave from March 2020 to June 2020, was observed. However, this has since been attenuated owing to social restriction measures, teleworking, government stimulus policies, and massive vaccine rollouts. Second, among all markets, the Islamic stock market is the most resilient and least impacted by the pandemic, suggesting evidence of a new moral shock.
Journal: Applied Economics
Pages: 4874-4885
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038366
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038366
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4874-4885



Template-Type: ReDIF-Article 1.0
Author-Name: Jayme V. Gerring
Author-X-Name-First: Jayme V.
Author-X-Name-Last: Gerring
Title: The Marvel effect: cinematic universes and their impact on box office receipts
Abstract: 
 This paper investigates the effects of cinematic universes in films on box office receipts using data from 250 films released between 2009 and 2019. Regarding the non-Marvel Cinematic Universes, there is a statistically significant impact on the opening weekend box office receipts, but the same is not true with respect to a filmʻs initial run. Alternatively, the Marvel Cinematic Universe has a statistically significant effect on box office receipts over opening weekend and during the filmʻs first run. In addition, female star power remains statistically significant with the inclusion of more independent variables while male and director star power become statistically insignificant regarding the opening weekend box office receipts.
Journal: Applied Economics
Pages: 4886-4899
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038775
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038775
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4886-4899



Template-Type: ReDIF-Article 1.0
Author-Name: Yifei Cai
Author-X-Name-First: Yifei
Author-X-Name-Last: Cai
Author-Name: Jamel Saadaoui
Author-X-Name-First: Jamel
Author-X-Name-Last: Saadaoui
Title: Fourier DF unit root test for R&D intensity of G7 countries
Abstract: 
 According to the Schumpeterian endogenous growth theory, the efficacy of R&D is lowered by the proliferation of products. To be consistent with empirical data, the ratio between innovative activity and product variety (also called R&D intensity) must be stationary. From this perspective, our contribution investigates whether the R&D intensity series is stationary when structural breaks are considered. Our sample of G7 countries is examined over the period spanning from 1870 to 2016. Our results indicate that traditional unit root tests (ADF, DF-GLS and KPSS) conclude that the R&D intensity series are non-stationary, in contradiction with the Schumpeterian endogenous growth theory. The conclusions of these traditional unit root tests may be misleading, as they ignore the presence of structural breaks. Indeed, we use several types of Fourier Dickey-Fuller tests to consider the presence of structural breaks. In the Fourier Dickey-Fuller unit root tests using double frequency and fractional frequency, the R&D intensity is significantly stationary at least at the 5% level for Canada, France, Germany, Italy and Japan when a deterministic trend is included in the tests. Nevertheless, the R&D intensity is non-stationary for the US, even when we consider structural breaks.
Journal: Applied Economics
Pages: 4900-4914
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038776
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038776
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4900-4914



Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Abid Shahzad
Author-X-Name-First: Muhammad Abid
Author-X-Name-Last: Shahzad
Author-Name: Christian Fischer
Author-X-Name-First: Christian
Author-X-Name-Last: Fischer
Title: The decline of part-time farming in Europe: an empirical analysis of trends and determinants based on Eurostat panel data
Abstract: 
 This article studies the state of part-time farming in the European Union (EU) amidst recent developments in its agricultural structure. First, an in-depth descriptive analysis of the trends in farm other gainful activities (OGA) is delineated. Second, an econometric panel regression analysis employing fractional probit model is conducted to investigate the relationship between the share of OGA and different farmer and farm characteristics. The analysis utilizes a balanced panel of 27 EU countries extracted from the Eurostat database between 2005 and 2016. The results show that OGA as main activity significantly decreased between 2005 and 2016, whereas the proportion of sole holder-managers with OGA as secondary activity slightly increased. OGA are explained by economic needs and are mostly related to farm size and farm types with lower economic farm productivity. The main OGA are mainly related to farmer characteristics (e.g. age and gender). Secondary OGA are explained by farm specialization. These trends may continue into the future which may bring an even fewer number of larger, more specialized, and more professional farms that have little time to engage in other activities than their core business of farming.
Journal: Applied Economics
Pages: 4812-4824
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036687
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036687
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4812-4824

Template-Type: ReDIF-Article 1.0
Author-Name: Svetlana Fedoseeva
Author-X-Name-First: Svetlana
Author-X-Name-Last: Fedoseeva
Author-Name: Rodrigo Zeidan
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Zeidan
Title: The US-China trade war and the emergence of market power in commodity markets
Abstract: 
 The article explores the indirect link between the trade war between China-US and deforestation in Brazil. China imposed tariffs that have eliminated American soy exports by November 2018. Higher soybean prices usually increase deforestation in Brazil. We estimate nonlinear autoregressive distributed lag models combined with multiple breakpoint tests to analyze price transmission changes over time. We show that market power emerges in the short run, while long-run price pass-through is close to complete. Extra profits from unexpected market power should induce land clearing for expanding soy production, a problem compounded by lax regulation, and reduced budgets for combating deforestation in Brazil. Results also suggest that effects on deforestation rates should be temporary. Given that the covid19 pandemic brings about a similar shock to global food markers, particularly demand for Brazilian soy, we expect a similar pattern of emergence of market power in the short but not long-run.
Journal: Applied Economics
Pages: 4952-4960
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039366
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039366
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4952-4960



Template-Type: ReDIF-Article 1.0
Author-Name: Gene Ambrocio
Author-X-Name-First: Gene
Author-X-Name-Last: Ambrocio
Title: Euro-area business confidence and COVID-19
Abstract: 
 I study the effects of the COVID-19 pandemic on business confidence in 11 Euro area countries and its impact on economic activity. To obtain causal effects, I instrument business confidence with domestic household confidence as well as household confidence in neighboring countries. I find evidence suggesting that the confidence channel was a sizable component to the economic transmission of COVID-19. A one standard deviation drop in business confidence leads to between 5–6 and 9% fall in economic activity in the industrial and wholesale and retail trade sectors, respectively. These results highlight the importance of managing confidence and expectations in crisis episodes.
Journal: Applied Economics
Pages: 4915-4929
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038777
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038777
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4915-4929



Template-Type: ReDIF-Article 1.0
Author-Name: Gergely Csurilla
Author-X-Name-First: Gergely
Author-X-Name-Last: Csurilla
Author-Name: Imre Fertő
Author-X-Name-First: Imre
Author-X-Name-Last: Fertő
Title: How long does a medal win last? Survival analysis of the duration of Olympic success
Abstract: 
 The aim of this article is to examine the factors that determine the durability of Olympic success at seven consecutive Summer Games between 1996 and 2021, employing survival analysis. It is assumed that factors similar to those that influence the durability of Olympic success also influence the likelihood of winning Olympic medals. We examine the durability of Olympic success at the level of sports for all medals, and for each type of medal. Our results suggest that a country can maintain its performance in a sport for an average of 2.1 Olympic Games. The Kaplan-Meier survival function shows that about 85% of spells fail after a single Games The GDP, host country, Communist past, the number of medals in a sport and the duration of preceding medal winning period are associated with successive medal-winning. Population size and the number of previous discontinuous medal wins decrease duration of Olympic success.
Journal: Applied Economics
Pages: 5006-5020
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039370
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:5006-5020



Template-Type: ReDIF-Article 1.0
Author-Name: Jie Ma
Author-X-Name-First: Jie
Author-X-Name-Last: Ma
Author-Name: Xiaojun Yang
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Yang
Title: Intra-Generational upward mobility and fertility: evidence from transition countries
Abstract: 
 We examine the role of intra-generational upward mobility (hereafter upward mobility) in determining the fertility of transition countries. Upward mobility can increase fertility through a positive income effect. It can also reduce the value of children’s support during parents’ elderly years as parents expect to have more resources in the future. Transition countries have experienced large socio-economic changes since the early 1990s and have highly varied economic conditions, including upward mobility. Using data from the Life in Transition Survey, we find that upward mobility increases fertility and the effect is robust to different model specifications. This result is consistent with a dominating income effect. Our findings point out the importance of considering upward mobility to boost fertility which has significant implications for demographic policy.
Journal: Applied Economics
Pages: 4991-5005
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039369
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039369
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4991-5005



Template-Type: ReDIF-Article 1.0
Author-Name: Imran Arif
Author-X-Name-First: Imran
Author-X-Name-Last: Arif
Title: Regional club convergence: Evidence from U.S. metropolitan-level data
Abstract: 
 In this paper, we analyze income per capita absolute and club convergence of 383 metropolitan areas of the U.S. To our knowledge, we are the first to provide club convergence analysis of income per capita at the metropolitan area-level. Using data for 1969–2017 containing 18,767 observations, we employ a data-driven convergence model that also allows heterogeneity in the panel. We demonstrate evidence of the absence of absolute convergence and the presence of club convergence. Furthermore, we use the ordered logit model to analyze the economic, demographic, and several other factors influencing club membership. Our results reveal a diversity of growth experiences across the U.S. metropolitan areas by extensively accounting for heterogeneity using a novel transition dynamic modeling framework.
Journal: Applied Economics
Pages: 4979-4990
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039368
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039368
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4979-4990



Template-Type: ReDIF-Article 1.0
Author-Name: Kun Su
Author-X-Name-First: Kun
Author-X-Name-Last: Su
Title: Religion, government intervention and crash risk: lessons from China
Abstract: 
 The determinants of stock price crash risk remain unclear, especially in transitional economies. Using firm-level data of listed firms in China from 2003 to 2016, we investigate the association between religion and stock price crash risk, as well as the moderating effects of government intervention in Chinese context. Our empirical results show that religious atmosphere in a region alleviates the local firm managerʻs incentive to hide bad news, and thereby potentially reduces stock price crash risk in Chinese context. We also find that the above effect is less pronounced in regions with high government intervention.
Journal: Applied Economics
Pages: 4930-4951
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038778
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038778
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4930-4951



Template-Type: ReDIF-Article 1.0
Author-Name: Yang-Chao Wang
Author-X-Name-First: Yang-Chao
Author-X-Name-Last: Wang
Author-Name: Jui-Jung Tsai
Author-X-Name-First: Jui-Jung
Author-X-Name-Last: Tsai
Author-Name: En You
Author-X-Name-First: En
Author-X-Name-Last: You
Title: The impact of RMB internationalization on the exchange rate linkages in China and ASEAN countries
Abstract: 
 This study uses the DCC-GARCH model to analyze the impact of RMB internationalization on exchange rate linkages in China and four ASEAN countries (Malaysia, Thailand, Philippines, and Indonesia) from 2009 to 2020. The results show that China, as the largest trading partner of ASEAN, has made exchange rate transmission very close between the two economic entities. In the process of RMB internationalization, exchange rate linkages exhibit varying characteristics in distinct stages. In the early stage, the direction of RMB internationalization was unclear, and exchange rate linkages were affected by international capital flows. Afterward, the RMB internationalization, combined with the Belt and Road Initiative, was gradually clarified, promoting a unilateral increase in RMB currency value and a decrease in the linkage level. With the implementation of the initiative, the dividends gradually spread to the four ASEAN countries, bringing the linkages to a peak. Subsequently, unilateral exchange rate reforms of the RMB, such as the ‘811 exchange rate reform,ʻ reduced linkages. After 2017, the cumulative effects of the reforms in the previous period appear. The RMB internationalization has taken shape in ASEAN, and the stability of the exchange rate linkages has been greatly improved.
Journal: Applied Economics
Pages: 4961-4978
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039367
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039367
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4961-4978

Template-Type: ReDIF-Article 1.0
# input file: catalog-resolver1343173020271163298.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Anastasia Cozarenco
Author-X-Name-First: Anastasia
Author-X-Name-Last: Cozarenco
Author-Name: Valentina Hartarska
Author-X-Name-First: Valentina
Author-X-Name-Last: Hartarska
Author-Name: Ariane Szafarz
Author-X-Name-First: Ariane
Author-X-Name-Last: Szafarz
Title: Subsidies to microfinance institutions: how do they affect cost efficiency and mission drift?
Abstract: 
 The costs and benefits of subsidized microfinance are still controversial. We utilize a cost-function estimation approach that accounts for the double bottom line (social and financial) of microfinance institutions (MFIs) to evaluate how subsidies affect both cost efficiency and risk of mission drift. We control for endogenous self-selection into the business models of credit-only versus credit-plus-deposit. Our results suggest that MFIs that both supply loans and collect deposits need no subsidies to be cost-efficient. In addition, subsidies to these MFIs are associated with an increase in deposit size, which might hurt the most disadvantaged depositors. In sum, combining subsidized funds from donors with deposits increases the risk of mission drift, and can therefore be socially undesirable.
Journal: Applied Economics
Pages: 5099-5132
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041176
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041176
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:44:p:5099-5132



Template-Type: ReDIF-Article 1.0
# input file: catalog-resolver-7408340582535660073.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Yu Lin
Author-X-Name-First: Yu
Author-X-Name-Last: Lin
Author-Name: Xiangyi Chang
Author-X-Name-First: Xiangyi
Author-X-Name-Last: Chang
Author-Name: Yingjie Shi
Author-X-Name-First: Yingjie
Author-X-Name-Last: Shi
Title: Interaction of capacity utilization and inventory efficiency: the moderating role of information sharing
Abstract: 
 This paper is aimed at verifying the existence of the systematic contradictions between inventory efficiency (IE) and capacity utilization (CU), two critical indicators of firm performance, in the manufacturing industry and the role of information sharing with supply chain partners in weakening the contradictions through empirical analysis. Raw material and finished goods inventory are studied respectively, and the underlying mechanism is established for each. With a cross-sectional dataset, we estimate systems of simultaneous equations with the three-stage least square (3SLS) method to investigate the interacting effects and further conduct the estimation on subsamples grouped by the moderator to study the moderating effects. The study confirms a significant two-way negative relationship between IE and CU and documents a significant negative moderating effect of sharing demand forecast with raw material suppliers on the interaction between raw material inventory efficiency (RMIE) and CU. The findings suggest managers keep in mind that the two operational objectives cannot be achieved at the same time dealing with supply chain uncertainty and take into account the costs and benefits of capacity and inventory when choosing strategies. They can also improve this situation by cooperating with supply chain partners to share information like demand forecast with them.
Journal: Applied Economics
Pages: 5050-5072
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2040727
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2040727
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:44:p:5050-5072



Template-Type: ReDIF-Article 1.0
# input file: catalog-resolver-1543061607110647264.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Ganghua Mei
Author-X-Name-First: Ganghua
Author-X-Name-Last: Mei
Author-Name: Lei Yue
Author-X-Name-First: Lei
Author-X-Name-Last: Yue
Title: Labor supply and time use: evidence from cohabiting women in the United States
Abstract: 
 The population of unmarried heterosexual cohabiting women has nearly tripled in the US over the past two decades. While previous studies have tended to ignore these women, or treat them as single/married, this paper examines the labor supply responses of cohabiting women, single women, and married women from 1996 to 2016 using March-CPS. A comparison of the three groups finds that cohabiting women have the lowest labor force participation elasticity with respect to after-tax wages. That cohabiting women would work more hours if their partners earned more annually and married women would not, points to another behavioral difference between the two groups. Results from ATUS-CPS 2003–2017 further imply that cohabiting women share some of the same characteristics of single and married women. We conclude that unmarried heterosexual cohabiting women should be classified as a separate female group.
Journal: Applied Economics
Pages: 5133-5158
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041177
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041177
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:44:p:5133-5158



Template-Type: ReDIF-Article 1.0
# input file: catalog-resolver4069505895705775540.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Kabir Dasgupta
Author-X-Name-First: Kabir
Author-X-Name-Last: Dasgupta
Author-Name: Keshar M. Ghimire
Author-X-Name-First: Keshar M.
Author-X-Name-Last: Ghimire
Author-Name: Gail Pacheco
Author-X-Name-First: Gail
Author-X-Name-Last: Pacheco
Title: How heavy is the price of smoking? Estimating the effects of prenatal smoking on child weight outcomes
Abstract: 
 Existing evidence suggests that maternal smoking during pregnancy leads to a decline in birthweight and a higher risk of obesity during early childhood years. However, the causal nature of the latter relationship is not credibly established. This study advances the literature by estimating the causal impact of motherʻs smoking during pregnancy on child bodyweight outcomes, from birth through age five. We use a nationally representative sample of children and mothers from the United States National Longitudinal Surveys. We model childrenʻs body weight as a function of motherʻs smoking during pregnancy. Our identification technique utilizes the instrumental variable strategy to exploit plausibly exogenous variation in smoking behaviour of mothers prompted by changes in federal and state-level tobacco tax rates at the time of conception. Consistent with prior literature, our instrumental variable estimates suggest children of smokers weigh significantly less at birth than children of nonsmokers (an estimated decline of 0.53 kg). However, there is no credible evidence that these children are more likely to be overweight during early childhood.
Journal: Applied Economics
Pages: 5159-5175
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041178
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041178
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:44:p:5159-5175



Template-Type: ReDIF-Article 1.0
# input file: catalog-resolver8138435640498211983.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Jagriti Srivastava
Author-X-Name-First: Jagriti
Author-X-Name-Last: Srivastava
Author-Name: Balagopal Gopalakrishnan
Author-X-Name-First: Balagopal
Author-X-Name-Last: Gopalakrishnan
Title: Work from home amenability and venture capital financing during COVID-19
Abstract: 
 This paper examines the impact of COVID-19 on venture capital financing of firms. We find a significant shift in the profile of firms that obtain venture capital financing during the pandemic-induced economic crisis. Firms in industries that are more amenable to work from home obtain greater amounts of financing. Growth-stage firms operating in amenable industries are able to obtain higher financing than early-stage firms. The higher financing obtained by firms in amenable industries is driven by venture capital funds focused on the domestic market. Additionally, the higher financing is obtained from a single venture capital investor rather than a consortia of investors. Taken together, the preference of venture capital funds indicate a less risk-averse behavior in financing firms amenable to remote working. The findings of our study using monthly firm-level data provide insights on venture capital financing during the pandemic.
Journal: Applied Economics
Pages: 5073-5098
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041175
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041175
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:44:p:5073-5098



Template-Type: ReDIF-Article 1.0
# input file: catalog-resolver7030768556793575949.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Yanfeng Wei
Author-X-Name-First: Yanfeng
Author-X-Name-Last: Wei
Author-Name: Xiaoying Guo
Author-X-Name-First: Xiaoying
Author-X-Name-Last: Guo
Title: The impact of oil supply shocks on real economic activity: new evidence based on the proxy SVARs
Abstract: 
 The existing literature on the impact of oil supply shocks on real economic activity after the mid-1980s still fails to reach an agreement. This may be partly due to different identification assumptions and model specifications corresponding to the oil supply shock, and partly due to the oil supply shock identified previously is endogenous to real economic activity. In this paper, based on the proxy structural vector autoregressions (SAVRs), we identify an oil supply shock that is exogenous to real economic activity, and then study the impact of this shock on U.S. real economic activity. We find exogenous oil supply shocks have a very large and persistent impact on U.S. real economic activity after the mid-1980s. Besides, several new possible transmission channels through which exogenous oil supply shocks can influence U.S. real GDP are detected. Specifically, unfavorable exogenous oil supply shocks can lower the consumer sentiment index (CSI) and consumer confidence index (CCI), decrease real net exports of goods and services (NEGS) through the terms of trade (TOT) effect, and reduce real government consumption expenditures and gross investment of state and local (GCEGISL), thus leading to a decline in real GDP. These newly detected transmission channels are very important for policymakers.
Journal: Applied Economics
Pages: 5035-5049
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2035312
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2035312
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:44:p:5035-5049



Template-Type: ReDIF-Article 1.0
# input file: catalog-resolver6346862861919302248.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Zs. Koczan
Author-X-Name-First: Zs.
Author-X-Name-Last: Koczan
Title: Not all in this together? Early estimates of the unequal labour market effects of Covid-19
Abstract: 
 Recent studies have highlighted the unequal labor market effects of the Covid-19 crisis in advanced economies, while studies focusing on developing economies pointed to increases in poverty. We contribute to these literatures by drawing on a new survey of almost 40,000 adults in 14 advanced as well as emerging economies conducted in August 2020. We show that while labor market impacts are, on average, more severe in emerging markets, these are less unequally distributed than in advanced economies. We document that job losses in emerging markets are also concentrated among the young, less educated and those with lower levels of income before the pandemic. However, we find that the likelihood of job losses falls less sharply with income in emerging markets than in advanced economies. Drawing on a similar survey conducted in 2010 we show that, unlike the Global Financial Crisis, the Covid-19 crisis disproportionately hit women. Job losses also appear to be more concentrated among the young now than during the Global Financial Crisis.
Journal: Applied Economics
Pages: 5021-5034
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2035311
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2035311
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:44:p:5021-5034

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2041180_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Solikin M. Juhro
Author-X-Name-First: Solikin M.
Author-X-Name-Last: Juhro
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Bernard Njindan Iyke
Author-X-Name-First: Bernard Njindan
Author-X-Name-Last: Iyke
Title: Understanding monetary and fiscal policy rule interactions in Indonesia
Abstract: 
 We examine the interaction of monetary and fiscal policies in Indonesia from 1974Q2 to 2019Q1. Within a standard structural vector autoregression framework, we show that the reactions of the policy rules are consistent with theoretical predictions. For instance, a contractionary monetary policy is trailed by a contractionary fiscal policy with lower government expenditure. We extend the analysis to evaluate the interaction of policy rules during active and passive regimes. We show that monetary and fiscal policies are not synchronized over the full sample period, suggesting structural and institutional rigidities, particularly in the past. Restricting the sample to a recent period, we find the policies are more harmonized. We attribute this to the recent joint policy coordination initiatives between the monetary and fiscal authorities.
Journal: Applied Economics
Pages: 5190-5208
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041180
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041180
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:45:p:5190-5208



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2041183_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Xingquan Yang
Author-X-Name-First: Xingquan
Author-X-Name-Last: Yang
Author-Name: Chunyang Lu
Author-X-Name-First: Chunyang
Author-X-Name-Last: Lu
Author-Name: Zheng Yang
Author-X-Name-First: Zheng
Author-X-Name-Last: Yang
Title: Capital-Market Liberalization and Controlling Shareholders’ Tunneling—Experimental Research in the Context of “Mainland China-Hong Kong Stock Connect”
Abstract: 
 Foreign investors attracted by capital-market liberalization may either inhibit controlling shareholdersʻ tunneling due to the influence of ‘long-term value investmentʻ or exacerbate it due to the effect of ‘short-term price speculation.ʻ Therefore, it is unclear whether and how capital-market liberalization will eventually influence controlling shareholdersʻ tunneling. We take the implementation of Shanghai-Hong Kong Stock Connect (SHHKSC) and Shenzhen-Hong Kong Stock Connect (SZHKSC) in Chinaʻs capital market as a quasi-natural experiment and use a difference-in-differences (DID) model to identify the causal effect of capital-market liberalization on controlling shareholdersʻ tunneling. The results show that capital-market liberalization significantly reduces controlling shareholdersʻ tunneling. Improving the quality of information disclosure and corporate governance as the predominant channels that allow capital-market liberalization to reduce controlling shareholdersʻ tunneling. Further analysis shows that the effect is more pronounced when companies are private, when the level of external marketization is low and when product market competition is weak. This study enriches and supplements the literature that the impact of capital-market liberalization on the real economy and provides policy insights. Regulators should improve the supervision of information disclosure and corporate governance to decrease controlling shareholdersʻ tunneling. (Jel codes:D82;G34;G38)
Journal: Applied Economics
Pages: 5241-5256
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041183
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041183
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:45:p:5241-5256



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2041184_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Luca Bettarelli
Author-X-Name-First: Luca
Author-X-Name-Last: Bettarelli
Author-Name: Laura Resmini
Author-X-Name-First: Laura
Author-X-Name-Last: Resmini
Title: The determinants of FDI: a new network-based approach
Abstract: 
 This article investigates the determinants of FDI at sub-national level. It recognizes that MNEsʻ foreign activities are organized in networks of strongly interconnected, but geographically dispersed affiliates. This implies a different approach to the analysis of the determinants of FDI, which should focus on contextual factors able to stimulate economic relations at distance. Methodologically, we use a gravity-type model and different regression techniques with a new dataset on networks of FDI involving German and Italian regions. We find evidence that technologically proximate regions sharing the same industry profile are more likely to experience positive and large networks driven by MNEs, with weaker evidence related to cultural and institutional proximities, which cannot compensate the negative impact of geographic distance. The distinctive contribution of this paper is to emphasize that local policies to attract FDI are more likely to succeed if addressed to similar regions.
Journal: Applied Economics
Pages: 5257-5272
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041184
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041184
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:45:p:5257-5272



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2041181_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Jared Barton
Author-X-Name-First: Jared
Author-X-Name-Last: Barton
Author-Name: Xiaofei Pan
Author-X-Name-First: Xiaofei
Author-X-Name-Last: Pan
Title: Relatively accurate but absolutely off: U.S. residents’ estimates of relative and absolute economic mobility
Abstract: 
 Using results from two treatment arms of a larger nationwide survey experiment in the United States, we add evidence on how Americans perceive social mobility. In one arm, respondents estimate both upward and downward relative economic mobility, while in the other, respondents estimate the absolute economic mobility (that is, do children out-earn their parents?) for each quintile of the parental income distribution. This latter question has been overlooked in the literature. We find respondentsʻ average estimates of relative downward mobility to be remarkably close to reality. The average estimate of relative upward mobility is also close, though both estimates underestimate relative mobility. There are small partisan differences in accuracy on relative mobility, with Republican-leaning respondents providing the most accurate estimates, but respondentsʻ perception of absolute mobility significantly underestimate (overestimate) mobility for the poorest (highest-income) children irrespective of partisan affiliation. Our results provide important insights on the implementation of redistribution policies.
Journal: Applied Economics
Pages: 5209-5222
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041181
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041181
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:45:p:5209-5222



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2041179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Chandan Sharma
Author-X-Name-First: Chandan
Author-X-Name-Last: Sharma
Author-Name: Rupika Khanna
Author-X-Name-First: Rupika
Author-X-Name-Last: Khanna
Title: Assessing asymmetric determinants of commodity-level exports: the role of policy responses to the COVID-19 pandemic
Abstract: 
 This paper explores the economic consequences of non-pharmaceutical government intervention to curb disease spread on Indian commodity-level exports. This is the first study to assess the export implications of the pandemic using a panel linear as well as a novel non-linear ARDL framework. Our results show that pandemic-related stringencies have a positive effect on Indian exports in the long-run. This result holds valid for domestic as well export destination countriesʻ stringencies. However, our evidence suggests that reducing stringencies has a more dominating effect on Indian exports than tightening of stringencies. Also, stringencies and uncertainty impact exports adversely in the short-run. Furthermore, pandemic-related financial uncertainty is found to have a dampening effect on exporting. Our results also show a significant asymmetric impact of policy responses on exports, especially for agriculture and manufacturing commodities, while mineral products are relatively less impacted.
Journal: Applied Economics
Pages: 5176-5189
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041179
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041179
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:45:p:5176-5189



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2041182_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Swati Sharma
Author-X-Name-First: Swati
Author-X-Name-Last: Sharma
Author-Name: Amaresh Dubey
Author-X-Name-First: Amaresh
Author-X-Name-Last: Dubey
Title: Like father, like son: does migration experienced during child schooling affect mobility?
Abstract: 
 Using a sample of 39,297 father-son pairs from Indian Human Development Surveys (IHDS), we examine whether migration experienced during child schooling affects the relationship between parent and child education. We relax the co-residency restriction for father-son pairs to obviate coresident sample selection bias in our mobility estimates. The panel structure of data enables us to identify children who were enrolled in school at the time when their families migrated. We find that migration experienced during schooling increases downward mobility. In particular, those children who were young at the time of migration tend to have poor educational outcomes. We show that widely cited aggregate measures of mobility provide an incomplete representation of intergenerational persistence in India, as most of the persistence originates from the tails of the educational distribution. The sons of the least educated fathers have poor prospects of upward mobility and face a glass ceiling in higher education. We use heteroscedasticity-based identification and Rosenbaumʻs sensitivity analysis to account for unobserved heterogeneity.
Journal: Applied Economics
Pages: 5223-5240
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041182
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041182
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:45:p:5223-5240



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2042465_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Qundi Feng
Author-X-Name-First: Qundi
Author-X-Name-Last: Feng
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Author-Name: Chung-Ping A. Loh
Author-X-Name-First: Chung-Ping A.
Author-X-Name-Last: Loh
Title: The effect of childhood left‑behind experience on individual’s income: evidence from China
Abstract: 
 Childhood circumstances may have a long-term impact on individual life-cycle outcomes. Using data from the China Health and Nutrition Survey, we explore the long-term effect of childhood left-behind experience due to parental rural-to-urban migration. The extended regression model is employed to address the potential endogeneity of being left-behind children with an instrument variable. The results indicate that the left-behind experience in childhood leads to a significantly lower income in adulthood. Robustness checks using the probability of being relative poverty validate our findings. Mechanism analysis shows that parental migration would reduce household income per capita, childrenʻs health outcomes, and the probability of enrolling in post-compulsory education, which were the possible channels. Our analysis highlights the long-term consequences of childhood left-behind experience, which suggests the need for preventive intervention to improve the early development of left-behind children and throughout the life course.
Journal: Applied Economics
Pages: 5273-5286
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2042465
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042465
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:45:p:5273-5286

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2042480_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Chao Zhang
Author-X-Name-First: Chao
Author-X-Name-Last: Zhang
Author-Name: Lifang Chen
Author-X-Name-First: Lifang
Author-X-Name-Last: Chen
Author-Name: Huasheng Song
Author-X-Name-First: Huasheng
Author-X-Name-Last: Song
Title: The impact of social security contributions on corporate innovation: evidence from the contribution collection reform in China
Abstract: 
 This paper identifies a positive causal effect of social security contributions on corporate innovation by exploiting the staggered passage of social contributions collection reforms in China. The collection of social security contributions was switched from social security institutions to tax authorities in Chinese provinces that have adopted collection reforms, which reduced employer-borne contributions. Our results indicate that a decrease in employer social security contributions induces an increase in the demand for labor by making labor less costly, subsequently discouraging labor-saving innovation. Moreover, the response of the innovation to the reforms is stronger for labor-intensive firms and non-state-owned enterprises.
Journal: Applied Economics
Pages: 5320-5334
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2042480
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042480
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:46:p:5320-5334



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2044994_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Yao-Tung Chen
Author-X-Name-First: Yao-Tung
Author-X-Name-Last: Chen
Author-Name: Sheng-Chang Peng
Author-X-Name-First: Sheng-Chang
Author-X-Name-Last: Peng
Title: Information asymmetry in medical insurance: an empirical study of one life insurance company in Taiwan
Abstract: 
 Based on the data from one anonymous but renowned life insurance company in Taiwan, this paper focuses on a big data analysis using R programming language while adhering to the requisite conditions for the validity of using regression model to test the existence of the issue of information asymmetry in medical insurance. The log-linear regression model is adopted to fit with the data set and it is shown: There is a significantly non-linear positive relationship between the compensations and the insurance coverage, indicating that the issue of information asymmetry does exist among those claimants under discussion; the older those claimants were insured, the more they claimed; women claimed more medical compensation than men; those paying premiums quarterly claimed the highest.
Journal: Applied Economics
Pages: 5351-5356
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044994
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044994
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:46:p:5351-5356



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2042479_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Luz Mariel Bustamante-Ayala
Author-X-Name-First: Luz Mariel
Author-X-Name-Last: Bustamante-Ayala
Author-Name: Gerardo Angeles Castro
Author-X-Name-First: Gerardo
Author-X-Name-Last: Angeles Castro
Author-Name: José Teran-Vargas
Author-X-Name-First: José
Author-X-Name-Last: Teran-Vargas
Title: The financial sector structure and performance and its impact on the Mexican economy: a perspective from the Financial Social Accounting Matrix
Abstract: 
 The study of the financial system, within the context of a Social Accounting Matrix, to identify its potential contribution to the economy and the linkages between the financial and productive sectors, is a topic barely explored, especially in emerging economies. This paper presents the construction of a Financial Social Accounting Matrix for the case of Mexico for the year 2013, using the Top-Down approach. It also presents an analytical tool through multipliers and impact simulations to understand the interconnection of income and expenditure transactions between sectors of the economy, into the intersectoral framework of financial sector flows and funds, identifying which sectors are creditors or debtors. We find that despite encouraging strategic sectors and allocating income to financial companies, the impact generated on other productive sectors is weak. Real estate services is the subsector that generates more monetary units for each exogenous monetary unit received. The methodology can be applied to assess the effects of impact simulations for planning policy, such as knowing the strategic sectors of the economy with greater linkages, and the possibility to assign and redirect financing to promote the consumption and investment capacity of both companies and households.
Journal: Applied Economics
Pages: 5305-5319
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2042479
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042479
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:46:p:5305-5319



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2042478_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Arief Rasyid
Author-X-Name-First: Arief
Author-X-Name-Last: Rasyid
Author-Name: Jason Nassios
Author-X-Name-First: Jason
Author-X-Name-Last: Nassios
Author-Name: Elizabeth L. Roos
Author-X-Name-First: Elizabeth L.
Author-X-Name-Last: Roos
Author-Name: James A. Giesecke
Author-X-Name-First: James A.
Author-X-Name-Last: Giesecke
Title: Assessing the economy-wide impacts of strengthened bank capital requirements in Indonesia using a financial computable general equilibrium model
Abstract: 
 After the 2008 global financial crisis, authorities across the globe stressed the importance of equity capital to absorb losses. While many countries have raised bank capital adequacy requirements (CARs), the comprehensive impact assessment of this policy for emerging economies remains largely unexplored. We use a financial computable general equilibrium (FCGE) model of Indonesia called AMELIA-F to investigate the economy-wide impact of a 100 basis points increase in the CAR of Indonesian banks. Bank balance sheets contract as they move away from holding riskier assets, aiding macroeconomic stability. However, both non-housing and housing investment contract as banks pass on higher funding costs, driving long-run real GDP below baseline. As we discuss, debt-to-equity ratios for these sectors, and the economy-wide private debt to income ratio all fall, thus aiding long-run macroeconomic stability.
Journal: Applied Economics
Pages: 5287-5304
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2042478
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042478
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:46:p:5287-5304



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2044995_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Sandrine Kablan
Author-X-Name-First: Sandrine
Author-X-Name-Last: Kablan
Author-Name: Valérie Chouard
Author-X-Name-First: Valérie
Author-X-Name-Last: Chouard
Title: Does climate aid matter for reducing CO2 emissions? The case of foreign aid for renewable energy
Abstract: 
 This article aims to investigate how climate aid devoted to renewable energy contributes to CO2 emissions in recipient countries. Indeed, since the beginning of the 2000s, international agreements between developed and developing countries have promoted the provision of financial aid to the second group of countries to help them fight global warming. We first discuss stylized facts on climate finance devoted to renewable energy and its impact on CO2 emissions. We can see that while the first variable is quickly increasing, the second variable displays a decrease from 2010. Econometric results show that climate aid for renewable energy has a slight impact on CO2 emissions reduction, especially after a threshold. However, despite this optimistic result, the impact is transitory. Indeed, this result can be explained by the fact that developing countries are more preoccupied by economic efficiency than ecological efficiency. However, in countries where a carbon tax is set, the tax contributes to reducing CO2 emissions. Finally, we show that ecological technologies imported through foreign direct investment do not yet play a significant role in reducing CO2 emissions or CO2 intensity.
Journal: Applied Economics
Pages: 5357-5372
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044995
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044995
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:46:p:5357-5372



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2044012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Todd Gabel
Author-X-Name-First: Todd
Author-X-Name-Last: Gabel
Title: Canadian welfare reform and the importance of entry
Abstract: 
 Since 1993, many Canadian provinces reformed their welfare systems with the twin goals of reducing costs and increasing the self-sufficiency of its participants. Different classifications of these policies are presented, and a welfare reform policy bundle is proposed. Using a novel dynamic panel model approach, which accommodates for past participation in driving future participation choices, it is found that welfare reform reduced participation rates by about 0.7% points (or about 10.3% relative to the unconditional mean rate of participation). This effect size is smaller than those reported in studies using static models, suggesting welfare reform may have previously gained additional ‘credit’ for reducing welfare caseloads by absorbing the effect of prior nonparticipation. Using a set of transition models, it is then shown that these declines in participation were achieved by reducing the probability of welfare entry.
Journal: Applied Economics
Pages: 5335-5350
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044012
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044012
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:46:p:5335-5350



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2044996_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Hideaki Sakawa
Author-X-Name-First: Hideaki
Author-X-Name-Last: Sakawa
Author-Name: Naoki Watanabel
Author-X-Name-First: Naoki
Author-X-Name-Last: Watanabel
Title: Impact of the COVID‑19 outbreak on stock market returns: Evidence from Japanese‑listed tourism firms
Abstract: 
 This study analyzes Japanese tourism firms’ stock market response to the announcement of the COVID-19 outbreak in China. We also aim to reveal the impact of government policy response on the relationship between the effect of the COVID-19 outbreak and Japanese tourism stock returns. We adopt the event study method to analyze the negative impact of the outbreak on Japanese tourism abnormal stock returns (ARs). We found that the lockdown announcements in Wuhan were significantly negative for stock market returns in Japanese tourism and travel-related stocks. Moreover, there is a negative relationship between government response and Japanese tourism stock returns. Finally, the government response weakens the negative relationship between the COVID-19 cases and ARs in Japanese tourism and travel-related industries. Our results imply that the government response is useful in mitigating the negative impact on the relationship between the COVID-19 cases and ARs in the early stages of the outbreak. This study contributes to the design of effective government strategies for future pandemics.
Journal: Applied Economics
Pages: 5373-5377
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044996
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044996
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:46:p:5373-5377

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2044997_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Raquel Langarita
Author-X-Name-First: Raquel
Author-X-Name-Last: Langarita
Author-Name: Ignacio Cazcarro
Author-X-Name-First: Ignacio
Author-X-Name-Last: Cazcarro
Title: The socio-economic impact of sports tourism events in rural areas and losses from COVID19: a case study in Spain
Abstract: 
 This work evaluates the effects that several outdoor ‘popular’ sports events, held in the province of Huesca, had on production and employment in the Aragonese economy (a European region in Northeast Spain). We use data from 880 questionnaires responded to by participants of the most significant and recent sporting events held in Huesca. The data have been used to build a vector of final demand increases. For the analysis, we update the input-output table for Aragon from the last one available, from 2005 to 2010. Using the input-output methodology, the results suggest positive effects on production and employment in most sectors (estimated to be about equal to current losses from not having these events, due to COVID19) The events under examination are typically 1-day affairs and have relatively low costs (registration income surpasses costs, and typically use public unused/unsaturated spaces).
Journal: Applied Economics
Pages: 5378-5392
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044997
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044997
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:47:p:5378-5392



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2045000_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Mustafa Kamal
Author-X-Name-First: Mustafa
Author-X-Name-Last: Kamal
Author-Name: Paul Blacklow
Author-X-Name-First: Paul
Author-X-Name-Last: Blacklow
Title: Attitudes and personality in the Australian gender wage gap
Abstract: 
 This paper estimates the effects of gender role attitudes and personality traits on the gender wage gap in Australia. Applying standard decomposition techniques and controlling for a wide range of variables, the paper finds that at least 67.8% of the total gender wage gap of 17.4% in 2019 remains unexplained – a figure which is lower than previous years. The results establish gender role attitudes as a key predictor of this pay gap both in the explained and unexplained part of the wage decomposition. It also shows that the impact of personality traits depends on whether the big five traits or the sub-traits are used in the analysis. Even some of the sub-traits belonging to the same category can influence the gender pay gap in opposite directions. Overall, the estimates establish the importance of psychological variables as more important than traditional human capital and other work-related characteristics in explaining the remaining gender wage gap in Australia.
Journal: Applied Economics
Pages: 5442-5459
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2045000
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2045000
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:47:p:5442-5459



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2044999_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Joseph Goeb
Author-X-Name-First: Joseph
Author-X-Name-Last: Goeb
Author-Name: Mywish Maredia
Author-X-Name-First: Mywish
Author-X-Name-Last: Maredia
Author-Name: Khin Zin Win
Author-X-Name-First: Khin Zin
Author-X-Name-Last: Win
Author-Name: Ian Masias
Author-X-Name-First: Ian
Author-X-Name-Last: Masias
Author-Name: Isabel Lambrecht
Author-X-Name-First: Isabel
Author-X-Name-Last: Lambrecht
Author-Name: Duncan Boughton
Author-X-Name-First: Duncan
Author-X-Name-Last: Boughton
Author-Name: Bart Minten
Author-X-Name-First: Bart
Author-X-Name-Last: Minten
Title: Urban food prices under lockdown: evidence from Myanmar’s traditional food retail sector during COVID-19
Abstract: 
 Many governments imposed stringent lockdowns during the COVID-19 pandemic. With consumer incomes already depressed, the potential impacts of these measures on urban food prices are of particular concern, especially for poor or vulnerable households. This paper examines changes in urban food prices during lockdown using detailed food price data from family-owned retail shops – an important urban food supplier – in Myanmar’s two largest cities, Yangon and Mandalay. We find that the supply side of Myanmar’s traditional food retail sector was largely resilient to the shocks and lockdowns over the first six months of the COVID-19 pandemic. Estimates from a fixed effects difference-in-differences model reveal that food prices were 3% higher in townships under lockdown compared to those not under lockdown. Price differences were largest for raw or lightly processed commodities sourced through wholesale markets, which comprise a larger share of urban consumer’s diets. We find no evidence of price gouging as retailer margins were not significantly different under lockdown restrictions. Our results suggest that the traditional food retail sector is an asset for food security, particularly in times of crisis.
Journal: Applied Economics
Pages: 5412-5441
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044999
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044999
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:47:p:5412-5441



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047595_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Karel Hrazdil
Author-X-Name-First: Karel
Author-X-Name-Last: Hrazdil
Author-Name: Jeong Bon Kim
Author-X-Name-First: Jeong Bon
Author-X-Name-Last: Kim
Author-Name: Xin Li
Author-X-Name-First: Xin
Author-X-Name-Last: Li
Title: How do chief executive officers with pilot status navigate through corporate social responsibility?
Abstract: 
 We investigate whether and how managerial risk-tolerance at the individual level affects corporate social responsibility (CSR) performance at company level. We use CEO aviation training as an observable ex-ante measure of CEO risk-tolerance. Contrary to a commonly held view, we show that firms led by CEOs with pilot status exhibit lower CSR performance. This finding holds even after controlling for CEO pay–performance incentives, military experience, overconfidence and other CEO and firm characteristics that prior studies document as affecting CSR performance. In further cross-sectional tests, we show that when a firm is R&D intensive, belongs to a high-tech industry, or faces fiercer product market competition, the negative effect of CEO risk-tolerance on CSR performance is more pronounced, suggesting that CSR may act as an insurance or risk-hedging tool. Overall, we provide evidence that risk-tolerance of CEO plays a significant role in shaping CSR performance.
Journal: Applied Economics
Pages: 5460-5475
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047595
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047595
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:47:p:5460-5475



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047597_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Muhammad Ansar Majeed
Author-X-Name-First: Muhammad Ansar
Author-X-Name-Last: Majeed
Author-Name: Chao Yan
Author-X-Name-First: Chao
Author-X-Name-Last: Yan
Title: Financial statement comparability and stock liquidity: evidence from China
Abstract: 
 This study examines the effect of financial statement comparability on stock liquidity. Drawing from information asymmetry arguments, we posit that greater comparability increases financial transparency, which improves the information environment and increases stock liquidity. Our results show a positive relationship between comparability and stock liquidity. However, the effect of comparability on stock liquidity is only significant for non state-owned enterprises. Additionally, institutional ownership strengthens the impact of comparability on stock liquidity. Our findings suggest a more pronounced comparability effect on stock liquidity for firms with greater information opacity. Overall, our study indicates that higher comparability decreases information asymmetry and facilitates investors’ decision-making.
Journal: Applied Economics
Pages: 5497-5514
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047597
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047597
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:47:p:5497-5514



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2044998_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Hassan F. Gholipour
Author-X-Name-First: Hassan F.
Author-X-Name-Last: Gholipour
Author-Name: Amir Arjomandi
Author-X-Name-First: Amir
Author-X-Name-Last: Arjomandi
Author-Name: Mohammad Reza Farzanegan
Author-X-Name-First: Mohammad Reza
Author-X-Name-Last: Farzanegan
Author-Name: Sharon Yam
Author-X-Name-First: Sharon
Author-X-Name-Last: Yam
Title: Global and local economic uncertainties and office vacancy in Australia: a sub-class analysis
Abstract: 
 Motivated by uncertainties caused by the COVID-19 pandemic, this study examines how office vacancy ratios (for premium, A, B, C and D-grade spaces) in Australia respond to shocks in global and local economic uncertainties. Using semiannual data from 1998 to 2020 and applying the vector autoregression (VAR) model, our results suggest that office vacancy ratios respond positively to economic uncertainty shocks in general, and especially to local economic uncertainty. Moreover, our sub-class analyses show that vacancy ratios in various office spaces respond differently to uncertainty shocks. The office vacancy ratio in premium-grade office responds to both shocks after one year with its responses fading out in year three. B-grade and C-grade vacancy ratios respond to both shocks within the first year and responses last for about 4 years. Additionally, sub-lease vacancy ratios in the aggregate office space show quick responses to uncertainty shocks (dying out in 2 years), while direct vacancy ratios respond after about 1 year (but fading out in 3 years).
Journal: Applied Economics
Pages: 5393-5411
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044998
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044998
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:47:p:5393-5411



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047596_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Author-Name: A. Doruk Gunaydin
Author-X-Name-First: A. Doruk
Author-X-Name-Last: Gunaydin
Author-Name: Mustafa Oztekin
Author-X-Name-First: Mustafa
Author-X-Name-Last: Oztekin
Title: Price discovery in emerging market ETFs
Abstract: 
 This study investigates the price discovery role of exchange-traded funds (ETFs) by examining the predictive relation between the returns of emerging market ETFs traded in the US and the returns to the aggregate equity indices that they track. In a sample that covers 18 countries, we find that ETF returns can predict one-day-ahead returns of their underlying indices. This relation is robust after controlling for the non-synchronicity between markets, serial correlation in index returns, and various determinants of aggregate returns. Moreover, the predictive relation is more pronounced during periods of higher volatility and evidence for bidirectional spillover effects is weak. We also find that an out-of-sample rolling window strategy outperforms investing in the market index several-fold in the majority of the markets, especially in the high-volatility subsample.
Journal: Applied Economics
Pages: 5476-5496
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047596
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047596
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:47:p:5476-5496

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Bartholomew Bilijo Bachori
Author-X-Name-First: Bartholomew Bilijo
Author-X-Name-Last: Bachori
Author-Name: Emmanuel Buabeng
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Buabeng
Author-Name: Daniel Sakyi
Author-X-Name-First: Daniel
Author-X-Name-Last: Sakyi
Title: Currency hedging behavior for stock returns uncertainty in Ghana
Abstract: 
 This article investigates the dynamic interaction between stock market returns and exchange rate movement and their implication for portfolio risk management in Ghana. To do so, and considering the Covid-19 crisis, the Dynamic Conditional Correlation Multivariate GARCH estimation technique was employed on daily data for Ghana Stock Exchange (GSE) Composite Index and the Ghana Cedi to USD, Euro, and GBP exchange rates from 3 January 2012 to 26 November 2021. The results revealed that: (i) the GSE market has no significant exposure to the USD, Euro, and GBP exchange rates in the full sample and periods before the crisis but was significantly exposed to the Euro rates during the crisis, (ii) the returns on holding foreign currencies were relatively higher but riskier compared to returns on stocks for the full sample and periods before the crisis, and (iii) while the Euro rates act as the most efficient hedge currency for stock returns uncertainty the correlations between stock returns and exchange rate movement were generally low and therefore, forming a portfolio of stocks and currency pairs improved an investor’s daily returns and risk. Based on the findings, relevant policy suggestions are offered to guide investors and policymakers.
Journal: Applied Economics
Pages: 5532-5548
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047599
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047599
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:48:p:5532-5548



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047598_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Amat Adarov
Author-X-Name-First: Amat
Author-X-Name-Last: Adarov
Author-Name: David Klenert
Author-X-Name-First: David
Author-X-Name-Last: Klenert
Author-Name: Robert Marschinski
Author-X-Name-First: Robert
Author-X-Name-Last: Marschinski
Author-Name: Robert Stehrer
Author-X-Name-First: Robert
Author-X-Name-Last: Stehrer
Title: Productivity drivers: empirical evidence on the role of digital and intangible capital, FDI and integration
Abstract: 
 We examine the drivers of labor productivity at aggregate and sectoral levels focusing on tangible and intangible ICT capital, FDI and global value chain participation. The analysis, based on a panel dataset of 18 EU countries, the US and Japan over the period 2000–2017, reveals an important role of ICT capital, especially intangible ICT capital embodied in software and databases, in driving labor productivity growth. Furthermore, backward global value chain participation is also positively associated with productivity. Contrary to expectations, we do not find evidence of a productivity-enhancing effect of foreign direct investment when controlling for phantom FDI related to special purpose entities.
Journal: Applied Economics
Pages: 5515-5531
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047598
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047598
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:48:p:5515-5531



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Stephen Matteo Miller
Author-X-Name-First: Stephen Matteo
Author-X-Name-Last: Miller
Author-Name: Thandinkosi Ndhlela
Author-X-Name-First: Thandinkosi
Author-X-Name-Last: Ndhlela
Title: “Burning money” and institutional decline during Zimbabwe’s hyperinflation
Abstract: 
 During Zimbabwe’s hyperinflation that ended in 2009, people turned to an illegal round-tripping transaction called ‘burning money’ to preserve purchasing power. The transaction involved illegally acquiring foreign currency at the official rate before converting back to domestic currency in the black market. After computing the widely used ‘Old Mutual’ parallel market rate from the ratio of prices of Old Mutual shares, which traded in London and Harare, we use the daily parallel market and official exchange rate data from 1999 to 2008 to estimate the monthly value of ‘burning money’. While arguably vital, as the transactions were optional, we value them using a single-factor call exchange option formula, which accounts for the volatility of official and parallel market exchange rates and systematic parallel market risk and compare it to changes in the parallel market premium, often used to measure non-unified exchange rates. The ‘burning money’ option values exceed changes in the parallel market premium and respond more to institutional decline, measured using the cash component of M2 equal to one minus the non-cash component of M2 known as Contract Intensive Money, and especially political risk.
Journal: Applied Economics
Pages: 5605-5621
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047604
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047604
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:48:p:5605-5621



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047600_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Eli Agba
Author-X-Name-First: Eli
Author-X-Name-Last: Agba
Author-Name: Hamza Bennani
Author-X-Name-First: Hamza
Author-X-Name-Last: Bennani
Author-Name: Jean-Yves Gnabo
Author-X-Name-First: Jean-Yves
Author-X-Name-Last: Gnabo
Title: Assessing the sources of heterogeneity in eurozone response to unconventional monetary policy
Abstract: 
 In this paper, we aim at explaining a specific type of heterogeneity in the euro area pertaining to the diverging responses of countries and sectors to the European Central Bank’s Unconventional Monetary Policy. Equipped with stock markets indices of 17 sectors for each euro area country, we first preform an event-study analysis to assess the reaction of the markets. Next, we regress the responses on a set of country-specific drivers. Our main findings show that variables related to the nature of banking industry (e.g. cost-to-income, return on assets), macroeconomic environment (e.g. gross debt) and macroprudential policy all contribute to observe diverging responses to ECB’s monetary policies. While some sectors and countries responded more negatively than positively to the policies, the Unconventional Monetary Policy impacts the markets positively on average. A policy implication is that the heterogeneous response calls for domestic structural reforms that should target the discrepancies in the banking and the macroeconomic environments across euro area countries.
Journal: Applied Economics
Pages: 5549-5574
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047600
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047600
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:48:p:5549-5574



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047601_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Jennifer T Lai
Author-X-Name-First: Jennifer T
Author-X-Name-Last: Lai
Author-Name: Jing Xie
Author-X-Name-First: Jing
Author-X-Name-Last: Xie
Author-Name: Shiyun Cao
Author-X-Name-First: Shiyun
Author-X-Name-Last: Cao
Author-Name: Hao Zhang
Author-X-Name-First: Hao
Author-X-Name-Last: Zhang
Title: Digital financial inclusion and illegal fundraising in China
Abstract: 
 This paper investigates the impact of digital financial inclusion on illegal fundraising activities in China. From the China Judgments Online website, we extract data of criminal court cases of illegal fundraising from 2013 to 2019, during which both the illegal fundraising court cases and the development of digital finance displayed a rising trend. We then evaluate if digital financial inclusion may have worsened illegal fundraising activities. We find that digital financial inclusion has a positive effect on illegal fundraising activities. This effect remains robust under alternative measures of the intensity of illegal fundraising activities and when instrumental variable estimations are used to tackle potential endogeneity problems. Furthermore, convenient banking services are an important channel through which digital financial inclusion exerts its positive impact on illegal fundraising. Therefore, while active promotions of digital finance could benefit economic development, it is also necessary to timely improve the supervision of emerging finance to guard against financial risks.
Journal: Applied Economics
Pages: 5575-5590
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047601
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047601
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:48:p:5575-5590



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047605_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: John Nkwoma Inekwe
Author-X-Name-First: John Nkwoma
Author-X-Name-Last: Inekwe
Author-Name: Kuntal Kumar Das
Author-X-Name-First: Kuntal Kumar
Author-X-Name-Last: Das
Author-Name: Umakant Dash
Author-X-Name-First: Umakant
Author-X-Name-Last: Dash
Author-Name: Augustine C. Arize
Author-X-Name-First: Augustine C.
Author-X-Name-Last: Arize
Title: Does the pattern of age dependency matter in the promotion of financial development in an emerging economy?
Abstract: 
 In this study, we examine the financial development effect of population aging pattern in India. We examine the period 1960 to 2017 and analyse the various types of age dependency, which includes both old and young measures. By using structural VAR and ARDL techniques, we find that changes in young age dependency have a significant impact on changes in financial development in India while dependency by the old generation does not affect it. This study suggests that government and policymakers should protect the health, longevity and working conditions of young age people for the promotion of better financial development in India.
Journal: Applied Economics
Pages: 5622-5637
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047605
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047605
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:48:p:5622-5637



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047603_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Jung Hwa Suh
Author-X-Name-First: Jung Hwa
Author-X-Name-Last: Suh
Author-Name: Si-Hun Park
Author-X-Name-First: Si-Hun
Author-X-Name-Last: Park
Title: Effects of business strategies on the selection of trusted taxpayers: case of South Korea
Abstract: 
 This study examines the effects of corporate business strategies on the selection of companies as trusted taxpayers in South Korea. The financial policies of companies with a prospector-type business strategy reflect inherent business uncertainties and risks, resulting in overvalued assets and profits and undervalued liabilities and expenses. By contrast, companies adopting a defender-type business strategy tend to accomplish economies of scale through various products and services, resulting in undervalued assets and profits and overvalued liabilities and expenses. Consequently, companies with a prospector-type business strategy are expected to be more likely to be selected as trusted taxpayers than companies using a defender-type business strategy. Our empirical analysis confirms that the probability of selection as a trusted taxpayer increases significantly when the company is a prospector and decreases significantly when the company is a defender. That is, prospector companies have a higher probability of selection as trusted taxpayers due to their aggressive accounting measures, whereas defender companies have a lower probability of selection as trusted taxpayers due to their conservative accounting measures. These findings have implications for tax authorities and executives by illustrating the characteristics required for companies to be selected as trusted taxpayers
Journal: Applied Economics
Pages: 5591-5604
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047603
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047603
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:48:p:5591-5604

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2048787_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Qifan Huang
Author-X-Name-First: Qifan
Author-X-Name-Last: Huang
Author-Name: Saizi Xiao
Author-X-Name-First: Saizi
Author-X-Name-Last: Xiao
Author-Name: Castiel Chen Zhuang
Author-X-Name-First: Castiel Chen
Author-X-Name-Last: Zhuang
Title: The heterogeneous impact of COVID-19 in a two-sided market: evidence from a live-streaming platform
Abstract: 
 Two-sided digital platforms play an increasingly important role in our economy. During the COVID-19 pandemic, our involvement with these platforms increases drastically, but little is known about how the behavior of consumers and the labor market performance of workers in a two-sided market are affected by an economy-wide shock. This article uses a unique real-time dataset from a live-streaming platform to investigate how virtual gifting of fans and live e-commerce decisions and sales of anchors are influenced by COVID-19. Our general quantile regression approach suggests that the pandemic severity on the fans side instead of the anchors side increases virtual gifting to low-paying anchors, consistent with our theoretical prediction. In addition to the prices adjusted by the platform, we also find user participation and gender potential mechanisms through which COVID-19 affects virtual gifting. Due to increased popularity caused by the pandemic, low-paying anchors conduct more live e-commerce and achieve higher sales. Our results document the de-polarization of a novel and emerging labor market with flexible workforce on a digital platform and emphasize the need to take market structures into account when studying the impact of demand shocks.
Journal: Applied Economics
Pages: 5670-5689
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2048787
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2048787
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:49:p:5670-5689



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2048788_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Liurui Deng
Author-X-Name-First: Liurui
Author-X-Name-Last: Deng
Author-Name: Zilan Liu
Author-X-Name-First: Zilan
Author-X-Name-Last: Liu
Author-Name: Jie Tan
Author-X-Name-First: Jie
Author-X-Name-Last: Tan
Title: Optimal portfolio and consumption choices of retirees with uncertain lifetimes under cumulative prospect theory
Abstract: 
 In this paper, based on Cumulative Prospect Theory (CPT), we focus on the optimal portfolio and consumption under uncertain lifetime. Previous work considers similar problems under Expected Utility Theory but not CPT. Our main contribution is to use CPT to more accurately model the characteristics of the retirees’ psychology and investment behavior after retirement. Moreover, we study the effect of the changes in psychology related to investment on consumption over an uncertain lifetime. We obtain explicit solutions for the optimal portfolio and consumption decisions. Furthermore, through numerical analysis, we compare our optimal consumption with that obtained by Alexander Kremer et al. In empirical analysis, we obtain the result that there is a significant inverted U-shaped relationship between the retirement age and the consumption rate. The result is consistent with one of theoretical and numerical analysis. Endogenous test and robustness test also support this result. Furthermore, we achieve the key conclusion that the effect of retirement age on consumption rate is heterogeneous. Specially, the impact of retirement age on consumption is different for different medical costs, geographic areas, gender and levels of education. But, the inverted U-shaped relationship between the retirement age and the consumption rate still exists.
Journal: Applied Economics
Pages: 5690-5716
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2048788
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2048788
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:49:p:5690-5716



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2047606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Rodolfo G. Campos
Author-X-Name-First: Rodolfo G.
Author-X-Name-Last: Campos
Author-Name: Jacopo Timini
Author-X-Name-First: Jacopo
Author-X-Name-Last: Timini
Title: Unequal trade, unequal gains: the heterogeneous impact of MERCOSUR
Abstract: 
 We estimate the impact of MERCOSUR on trade flows and on gains from trade for its member countries using a standard modern general equilibrium quantitative structural gravity model. We find a highly heterogeneous impact on bilateral trade flows and gains from trade. We estimate that gains from trade attributable to MERCOSUR are equivalent to a 4.0% increase in per-capita consumption for Argentina. For the other countries, gains from trade are smaller: 0.8% for Uruguay, 0.5% for Paraguay, and 0.3% for Brazil. We study whether Brazil would benefit from withdrawing from MERCOSUR and signing a trade agreement with a different trade bloc but conclude that net gains from such a switch would be small, if any.
Journal: Applied Economics
Pages: 5655-5669
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047606
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047606
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:49:p:5655-5669



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2042466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Yunrong Li
Author-X-Name-First: Yunrong
Author-X-Name-Last: Li
Author-Name: Ricardo Mora
Author-X-Name-First: Ricardo
Author-X-Name-Last: Mora
Title: On the use of social networking services and the ability to socialize: evidence from Chinese children aged 10 to 15
Abstract: 
 We use longitudinal individual data from a nationally representative sample of Chinese children aged 10 to 15 to investigate whether restrictions on internet use for social interactions affect social skills among adolescents. First, we find that (i) for most children offline and online relations are complements so that online restrictions reduce their offline social relations; (ii) these negative effects are mostly invariant to the size of the online network; and (iii) for older children they are large and statistically significant even in the absence of network effects. Second, we find that offline social relations directly affect social skills while online social relations do not. These results are consistent with the view that the majority of adolescents use online technologies to intensify their offline social relations, which has a positive effect on their ability to socialize with others.
Journal: Applied Economics
Pages: 5639-5654
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2042466
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042466
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:49:p:5639-5654



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2052009_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Qinyi Liu
Author-X-Name-First: Qinyi
Author-X-Name-Last: Liu
Author-Name: Belton M. Fleisher
Author-X-Name-First: Belton M.
Author-X-Name-Last: Fleisher
Title: Job tasks and cognitive skill accumulation
Abstract: 
 Individuals’ cognitive skills can be improved through learning by doing various tasks at work. We report the results of studying rich information on job tasks performed at the individual level based on three measures of job task complexity: (i) overall job complexity, (ii) analytical task intensity, and (iii) interactive task intensity. Controlling for task selection, we show that both overall job task complexity and analytical tasks can contribute to the development of a worker’s cognitive skills, while interactive tasks play a less significant role. Furthermore, we find that complex job tasks can offset the effect of aging on cognitive functioning. We show the implications of our research results for work design, cognitive interventions, and retirement policies.
Journal: Applied Economics
Pages: 5734-5753
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2052009
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2052009
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:49:p:5734-5753



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_1843332_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: The Editors
Title: Correction
Journal: Applied Economics
Pages: 5754-5754
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2020.1843332
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1843332
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:49:p:5754-5754



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2049674_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Michael A. Roach
Author-X-Name-First: Michael A.
Author-X-Name-Last: Roach
Title: Surprise information in Major League Baseball: how teams and betting markets respond
Abstract: 
 Studies of financial markets have shown markets inefficiently underreacting to surprise information, discounting it too heavily in the short term. This paper explores this phenomenon in a new but analogous setting: Major League Baseball. I analyze how surprise information – the deviation between a team’s realized win total and the preseason expectations of betting markets – is incorporated into the teams’ personnel investments and into betting markets. Using fixed effect panel regressions, I find that higher win totals are associated with increased investment in the following season (as measured by team payroll and investment in free agents) and that, conditional on win totals, underperforming (overperforming) expectations in the prior season is associated with more (less) investment. This is consistent with teams discounting some of the surprise information. The effect is more pronounced for teams near the threshold of a playoff appearance. I find that some discounting is rational since roughly 27% of the gap between realized performance and expected performance does not persist into the following season. I find no evidence that betting markets are inefficient in their incorporation of surprise information. However, estimates suggest that teams significantly underreact to surprise information, an inefficiency analogous to those observed in financial markets.
Journal: Applied Economics
Pages: 5717-5733
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2049674
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2049674
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:49:p:5717-5733

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2053653_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Mengxi He
Author-X-Name-First: Mengxi
Author-X-Name-Last: He
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Author-Name: Danyan Wen
Author-X-Name-First: Danyan
Author-X-Name-Last: Wen
Author-Name: Yudong Wang
Author-X-Name-First: Yudong
Author-X-Name-Last: Wang
Title: Forecasting the Chinese stock market volatility: A regression approach with a t-distributed error
Abstract: 
 In this paper, we improve the ordinary least squares (OLS) estimation approach by replacing a normally distributed error with a t-distributed error. Empirically, we investigate the predictability of the Chinese stock market volatility based on this modified approach. Results show that the modified OLS method with a t-distributed error has a significantly stronger forecasting power than its counterpart with a normally distributed error. From an asset allocation perspective, the modified OLS approach can help a mean-variance investor obtain sizeable utility gains. We also conduct two extended empirical analyses and further verify the superiority of the regression approach with a t-distributed error. Our results are robust to a series of settings. Finally, we find that the regression approach with a t-distributed error shows greater tolerance for outliers by assigning smaller weights to them, thereby highlighting its superior performance.
Journal: Applied Economics
Pages: 5811-5826
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053653
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053653
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:50:p:5811-5826



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2053054_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Yi Fan
Author-X-Name-First: Yi
Author-X-Name-Last: Fan
Author-Name: Diana M. Weinhold
Author-X-Name-First: Diana M.
Author-X-Name-Last: Weinhold
Title: Urban noise, sleep disruption and health
Abstract: 
 Numerous studies have linked sleep disruption to a variety of poor health outcomes, but social scientists still have a very limited understanding of the overall importance of sleep for health in the general population. Limitations on both the scope and duration of laboratory studies make it difficult to establish longer-term causal links, and potential reverse causality may significantly weaken causal inference with observational data. As a result, there is little empirical evidence on the potential causal impact of commonly encountered urban noise-induced sleep disruption on health in otherwise healthy adults. Using a survey of Dutch adults, we contribute to the effort to investigate the causal relationship between self-reported sleep disruption and health by using individual-specific exposure to neighbour noise as an instrument for sleep disruption. We argue that neighbour noise is a relatively ex-ante unobservable exogenous shock, and we provide quantitative evidence that it fulfills the relevance, exogeneity, and exclusion restrictions for validity as an instrument. Consistent with theory, we find statistically and economically significant causal effects of sleep disruption on cardiovascular problems, auto-immune diseases such as arthritis and lung disease, and headache. The results survive a battery of robustness checks and highlight the importance of noise-related public policies.
Journal: Applied Economics
Pages: 5782-5799
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053054
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053054
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:50:p:5782-5799



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2053053_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Donseung Choi
Author-X-Name-First: Donseung
Author-X-Name-Last: Choi
Author-Name: Kevin L. James
Author-X-Name-First: Kevin L.
Author-X-Name-Last: James
Author-Name: Collins Emeka Okafor
Author-X-Name-First: Collins Emeka
Author-X-Name-Last: Okafor
Author-Name: Eunho Cho
Author-X-Name-First: Eunho
Author-X-Name-Last: Cho
Author-Name: Md Nazmul Hasan Bhuyan
Author-X-Name-First: Md Nazmul Hasan
Author-X-Name-Last: Bhuyan
Title: The effect of executives' education and compensation on firm value: evidence from China
Abstract: 
 In this study, we empirically investigate the relation between firm executives’ education and compensation levels and firm value in non-state-owned Chinese listed firms. We closely examine whether executive compensation moderates the relationship between executives’ education and firm value. Using a sample of 6,674 firm-year observations from 2005–2016, we find that firms with more educated executives have better values. Furthermore, our results show that the executive’s compensation level enhances this positive association. Our findings lend credence to similar studies that suggest that education and compensation levels can enhance firm value.
Journal: Applied Economics
Pages: 5763-5781
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053053
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053053
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:50:p:5763-5781



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2053655_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Zhiqi Zhao
Author-X-Name-First: Zhiqi
Author-X-Name-Last: Zhao
Author-Name: David Meenagh
Author-X-Name-First: David
Author-X-Name-Last: Meenagh
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Title: Should Hong Kong switch to Taylor rule?—Evidence from DSGE model
Abstract: 
 This paper studies the economy of Hong Kong through the lens of a small open economy DSGE model with a currency board exchange rate commitment. It assumes flexible prices and a banking system that provides credit to entrepreneurial household firms; the money supply is fully backed by reserves under the currency board. We estimate and evaluate the model by Indirect Inference over the sample period of 1994Q1-2018Q3; we find that it matches the data behaviour as represented by a VAR. We examined the economy’s volatility using bootstrapping of the model innovations, under both the estimated currency board model and a standard alternative regime with floating exchange rate and a Taylor rule; we found that Hong Kong welfare is higher in the currency board, which substantially reduces output volatility.
Journal: Applied Economics
Pages: 5851-5872
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053655
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053655
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:50:p:5851-5872



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2053654_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Jiali Fang
Author-X-Name-First: Jiali
Author-X-Name-Last: Fang
Author-Name: Wei Hao
Author-X-Name-First: Wei
Author-X-Name-Last: Hao
Author-Name: Michelle Reyers
Author-X-Name-First: Michelle
Author-X-Name-Last: Reyers
Title: Financial advice, financial literacy and social interaction: what matters to retirement saving decisions?
Abstract: 
 We analyze the effect of financial advice, financial literacy and social interaction on households’ retirement saving decisions. Financial advice is the only factor that positively influences individuals’ decisions to participate in a retirement plan, while only financial literacy increases risky asset allocation. These two important factors both influence the ultimate retirement account balance. Viewed collectively, we propose that financial advice and financial literacy benefit retirement saving decisions through different channels, they complement each other and they jointly lead to a better ultimate outcome. The evidence is consistent when we further consider quality of advice and self-rated financial literacy. However, social interaction is of little help in facilitating better retirement saving decisions.
Journal: Applied Economics
Pages: 5827-5850
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053654
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053654
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:50:p:5827-5850



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2053052_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: S. N. Spilioti
Author-X-Name-First: S. N.
Author-X-Name-Last: Spilioti
Title: Market share-prices versus their fundamental values: the case of the New York stock exchange
Abstract: 
 The accounting valuation model suggests that the differences between predicted, and market shares-prices are considered as valuation errors while the finance valuation approach proposes that these differences are due to the sentiment of investors. In this paper, we use a new version of the residual income valuation model using American data to calculate the fundamental value of a stock and then examine whether price deviations from their fundamental values are due to macroeconomic or psychological factors. The results show that these differences are explained by important macroeconomic and psychological variables.
Journal: Applied Economics
Pages: 5755-5762
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053052
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053052
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:50:p:5755-5762



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2053055_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Yiming He
Author-X-Name-First: Yiming
Author-X-Name-Last: He
Author-Name: Shaohui Gao
Author-X-Name-First: Shaohui
Author-X-Name-Last: Gao
Title: Energy-Water Consumption and Food Yield: An Empirical Dual Sectors Dynamic Equilibrium Model
Abstract: 
 This paper develops a dual sectors dynamic equilibrium model and introduces agricultural energy consumption and agricultural water consumption in a growth model that tested by using a panel data set from 2004 to 2016 in China. It presents a theoretical prediction on the interactions between agricultural energy consumption, agricultural water consumption, and food yield. Consistent with this prediction, agricultural electricity consumption and agricultural water consumption by themselves appear to have significant effects on food yield. The fixed-effects models verify that agricultural electricity consumption, agricultural water consumption, and food yield have long-run equilibrium relationships. The results of weather-based robustness checks reveal that food yield is positively correlated with agricultural electricity consumption. Also consistent with theory, agricultural water consumption is positively associated with food yield. These results are generally stable and hold with tests of panel data unit roots, with alternative estimation strategies, and with or without controlling for covariates.
Journal: Applied Economics
Pages: 5800-5810
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053055
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053055
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:50:p:5800-5810

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2056126_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Christophe Blot
Author-X-Name-First: Christophe
Author-X-Name-Last: Blot
Author-Name: Fabien Labondance
Author-X-Name-First: Fabien
Author-X-Name-Last: Labondance
Title: Beyond the interest rate pass-through: monetary policy and banks interest rates since the effective lower bound
Abstract: 
 We investigate whether ECB monetary policy influences the retail interest rates in the Euro Area when the policy rate reaches the effective lower bound. We estimate a panel Error Correction Model that accounts for potential heterogeneities in the transmission of monetary policy. The analysis disentangles alternative balance-sheet policies implemented by the ECB. We find that unconventional measures have influenced banking interest rates beyond the pass-through of the current and expected policy rate. These effects are driven by liquidity provisions and by the covered bond purchase programmes. Those policies have been effective in the core and in the peripheral countries; however, the effect of purchases of covered-bond has been stronger in the periphery.
Journal: Applied Economics
Pages: 5976-5990
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056126
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056126
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:51:p:5976-5990



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2055742_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Austin F. Eggers
Author-X-Name-First: Austin F.
Author-X-Name-Last: Eggers
Author-Name: Peter A. Groothuis
Author-X-Name-First: Peter A.
Author-X-Name-Last: Groothuis
Title: Party on dude, but not if you’re a top academic achieving student: how being named a top party school changes the academic profile of a university
Abstract: 
 This study examines how being named the top party school in the nation by the Princeton Review effects the quality of students at a university. The results indicate that being named the top party school lowers the number of top-tier students who choose to attend the university as measured by academic test scores. The study further finds that being named a top party school has no effect on student applications; however, this designation does lower the number of students who are admitted and who chose to enroll after the institution is named the top party school. These findings suggest that the publicity of being named the top party school enhances a school’s undesired reputation, thereby influencing student enrollment decisions, particularly among top-tier students.
Journal: Applied Economics
Pages: 5932-5942
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2055742
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2055742
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:51:p:5932-5942



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2054927_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Daniel Lederman
Author-X-Name-First: Daniel
Author-X-Name-Last: Lederman
Author-Name: Marwane Zouaidi
Author-X-Name-First: Marwane
Author-X-Name-Last: Zouaidi
Title: Incidence of the Digital Economy and Frictional Unemployment: International Evidence
Abstract: 
 This paper is the first to quantify the relationship between the incidence of the digital economy and long-term frictional unemployment across countries. This paper contributes a novel approach to the literature that had been missing by focusing on the impact of the digital economy on unemployment across a global sample of countries . The resulting evidence indicates that there is a robust, negative partial correlation between national unemployment rates and the incidence of the digital economy, proxied by the share of the adult population that reports using the internet to pay bills. Further, the absolute values of OLS estimates of the partial correlation suggest that it might be higher for developing than high-income economies. Controlling for informal employment appears to be key for removing a positive omitted-variable bias in the estimate of the partial correlation between unemployment and the digital economy, which is due to a negative bivariate correlation between unemployment and informality, and a negative bivariate correlation between informality and the incidence of digital payment. The results from IV estimations suggest that the partial correlation between unemployment and digital payments is negative, with the absolute value of the estimates being larger than the absolute value of the OLS estimates.
Journal: Applied Economics
Pages: 5873-5888
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2054927
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2054927
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:51:p:5873-5888



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2055740_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Petra Maresova
Author-X-Name-First: Petra
Author-X-Name-Last: Maresova
Author-Name: Ehsan Javanmardi
Author-X-Name-First: Ehsan
Author-X-Name-Last: Javanmardi
Author-Name: Raihan Maskuriy
Author-X-Name-First: Raihan
Author-X-Name-Last: Maskuriy
Author-Name: Ali Selamat
Author-X-Name-First: Ali
Author-X-Name-Last: Selamat
Author-Name: Kamil Kuca
Author-X-Name-First: Kamil
Author-X-Name-Last: Kuca
Title: Dynamic sustainable business modelling: exploring the dynamics of business model components considering the product development framework
Abstract: 
 Business systems are a subclass of dynamic, complex systems; the plurality of multifarious and interwoven factors affecting a business system makes prediction, modeling, and decision-making challenging for the players in such systems. This study conceptualises dynamic business modeling from a sustainability viewpoint by investigating the basic principles, requirements, and methodological limitations, as well as gaps in the business model design literature. This conceptual model combines an adapted business model canvas and system dynamics modeling using an up-to-date review. The studies used in this systematic review were retrieved from the Scopus and Web of Science databases between 2010 and 2021. The total number of publications in all databases was 422. However, following an in-depth investigation of these publications, 164 papers were selected for further review. Based on the business model canvas, the interactions between different business dimensions and the impact on environmental stakeholders were examined. Finally, a dynamic, sustainable business model canvas is conceptualised and developed. The findings suggest that the proposed system dynamics business modeling approach can frame the environmental, social, and economic drivers of value creation in a causal feedback structure and overcome the gaps and criticisms of existing business model design tools.
Journal: Applied Economics
Pages: 5904-5931
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2055740
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2055740
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:51:p:5904-5931



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2055743_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Author-Name: Sergei Gurov
Author-X-Name-First: Sergei
Author-X-Name-Last: Gurov
Title: New evidence on the impact of implicit trading costs on asset prices in the Russian stock market
Abstract: 
 We perform a comprehensive study of different illiquidity effects in the relatively illiquid Russian stock market. Over the period 2010–2020, we apply cross-sectional and time-series regressions using two low-frequency illiquidity proxies: the Amihud ratio and the invariance-implied ratio. The evidence suggests that implicit trading costs influence only the returns of small-capitalization stocks or low size double-sorted portfolios. The Amihud ratio overestimates the illiquidity premium for small-cap stocks as predicted by the invariance theory. However, we find that the effect is economically and statistically significant only in the time-series.
Journal: Applied Economics
Pages: 5943-5955
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2055743
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2055743
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:51:p:5943-5955



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2056125_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Claudiu Tiberiu Albulescu
Author-X-Name-First: Claudiu Tiberiu
Author-X-Name-Last: Albulescu
Author-Name: Camélia Turcu
Author-X-Name-First: Camélia
Author-X-Name-Last: Turcu
Title: Productivity, financial performance, and corporate governance: evidence from Romanian R&D firms
Abstract: 
 We study the impact of financial performance and corporate governance on the productivity of the Romanian Research and Development (R&D) sector. We draw on a dataset consisting of 116 Romanian R&D companies covering the time span from 2007 to 2016. Firm productivity is computed using several metrics of TFP (total factor productivity). We show, based on bootstrap panel quantile regressions, that size, financial profitability, and foreign ownership are key drivers of R&D companies’ productivity. Intangible assets and taxation have no significant effect on R&D firms’ productivity, while the degree of independence in decision-making and owners’ presence in firms’ management negatively impact TFP. With women on the board, state-owned applied research institutes benefit from higher productivity compared with R&D private firms, if they are in lower quantiles.
Journal: Applied Economics
Pages: 5956-5975
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056125
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056125
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:51:p:5956-5975



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2055268_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yao Yao
Author-X-Name-First: Yao
Author-X-Name-Last: Yao
Author-Name: George S. Chen
Author-X-Name-First: George S.
Author-X-Name-Last: Chen
Author-Name: Lin Zhang
Author-X-Name-First: Lin
Author-X-Name-Last: Zhang
Title: Gender segregation in the causal effect of foreign direct investment on educational attainment: the Chinese experience
Abstract: 
 We examine the causal effect of foreign direct investment (FDI) on educational attainment through the lens of gender segregation in China. Using a comprehensive dataset for the 1985–2014 period and controlling for endogeneity, we find that a more prominent FDI presence causes higher educational attainment, particularly for women. Moreover, we show that this gender-segregated causal effect remains robust to different estimators, measurements and specifications. Overall, we uncover an important social externality of FDI that has never been explored systematically in the literature; namely, FDI generates positive spillovers on female educational attainment in its host country.
Journal: Applied Economics
Pages: 5889-5903
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2055268
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2055268
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:51:p:5889-5903

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2056128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammed Benlemlih
Author-X-Name-First: Mohammed
Author-X-Name-Last: Benlemlih
Author-Name: Cynthia Assaf
Author-X-Name-First: Cynthia
Author-X-Name-Last: Assaf
Author-Name: Imane El Ouadghiri
Author-X-Name-First: Imane
Author-X-Name-Last: El Ouadghiri
Title: Do political and social factors affect carbon emissions? Evidence from international data
Abstract: 
 This study extends the literature on the determinants of carbon emissions by exploring the effects of political and social factors on pollutant emissions. We claim that political stability, corruption, and women in politics significantly influence CO2 emissions. Using the autoregressive distributed lag approach and an extensive dataset that represents more than 145 countries worldwide, we provide strong and robust evidence that low corruption practices and women’s representation in politics statistically and economically reduce carbon emissions. We also show that high political stability significantly reduces CO2 emissions in the short run, but not in the long run. Our findings highlight the importance of these factors in reducing pollution worldwide and provide incentives for international regulators and policymakers toward stronger and mandatory decisions that positively evolve less politically stable and corrupt countries.
Journal: Applied Economics
Pages: 6022-6035
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056128
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056128
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:52:p:6022-6035



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2056130_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Massimiliano Caporin
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Caporin
Author-Name: Mikhail Stolbov
Author-X-Name-First: Mikhail
Author-X-Name-Last: Stolbov
Author-Name: Maria Shchepeleva
Author-X-Name-First: Maria
Author-X-Name-Last: Shchepeleva
Title: What drives the expansion of research on banking crises? Cross-country evidence
Abstract: 
 This article aims to identify the factors which promote research activity on banking crises in the cross-country framework during the period 2014–2020. Building on the population-adjusted country-level publication data from the Scopus and Web of Science databases and applying Bayesian model averaging (BMA) and least absolute shrinkage and selection operator (LASSO), we conduct an open search for such factors out of 23 candidate predictors. A higher level of bank concentration appears to be the most significant factor motivating research on banking crises. It is robust with respect to both bibliographic databases and variable selection methods used. Based only on the Scopus data, GDP per capita and the peak ratio of non-performing loans to total loans during the latest banking crisis experienced by a country also increase the number of published studies on banking crises.
Journal: Applied Economics
Pages: 6054-6064
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056130
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056130
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:52:p:6054-6064



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2056570_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bin Liu
Author-X-Name-First: Bin
Author-X-Name-Last: Liu
Author-Name: Qun Gao
Author-X-Name-First: Qun
Author-X-Name-Last: Gao
Author-Name: Ruixue Zhu
Author-X-Name-First: Ruixue
Author-X-Name-Last: Zhu
Author-Name: Jide Sun
Author-X-Name-First: Jide
Author-X-Name-Last: Sun
Author-Name: Chunlu Liu
Author-X-Name-First: Chunlu
Author-X-Name-Last: Liu
Title: Measuring the developing trends of international construction industries in global value chains based on value added
Abstract: 
 The construction sector is an indispensable element of social economies. The international trade activities for the local construction sectors have been stimulated by the demands of globalization, which accelerates the transfer of value added in the global value chains. This study constructs a measurement framework for the developing trends in the global value chains based on value added and picks up the international construction industries at the sectoral level. Based on the participation index, the position index, and the connection index, the developing trend is measured in order to comprehensively identify the ability of the national construction sectors due to value added in the global value chain. The study results show that the influence on the global value chain derived from technical advantage decreased with the improvement of the construction sectors in emerging economies. The international construction sectors were reallocated based on geographical distribution and competitive advantage after 2008. This paper will prove useful for policymakers by providing a clear method for identifying the precise location in the global value chain of a specific country. Governments can consider sectoral planning at regional and global levels based on a map of advantages and disadvantages.
Journal: Applied Economics
Pages: 6065-6081
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056570
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056570
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:52:p:6065-6081



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2056127_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mihoko Wakamatsu
Author-X-Name-First: Mihoko
Author-X-Name-Last: Wakamatsu
Author-Name: Shunsuke Managi
Author-X-Name-First: Shunsuke
Author-X-Name-Last: Managi
Title: Does spatially targeted information boost the value of ecolabeling seafood? A choice experiment in Japan
Abstract: 
 The success of ecolabelling to promote sustainable fisheries hinges on information. We explore the effects of spatially targeted knowledge on willingness to pay for ecolabels using treatments that provide consumers with knowledge about the health of worldwide, domestic, and foreign fisheries, which can have differential effects for domestic and imported seafood. Analysis of data collected using a choice experiment indicates that spatial differences in knowledge do not necessarily influence the value of ecolabels. Knowledge of the state of domestic fisheries has no greater effect on the value consumers assign to sustainable domestic products than knowledge of world fisheries. We also find that the ecolabels generate premiums and that importing discounted the value regardless of whether additional information on fisheries was provided and of the type of spatial knowledge provided. The greatest premium for ecolabelled domestic products was achieved when the world fishery information was provided, but additional knowledge about the fishery did not affect the value of ecolabelled foreign products. Additionally, consumers who received information on the domestic fishery and viewed it as positive were willing to pay as much for the labelled domestic products as those who received information on world fisheries.
Journal: Applied Economics
Pages: 6008-6021
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056127
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056127
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:52:p:6008-6021



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2061902_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Antonio Martuscelli
Author-X-Name-First: Antonio
Author-X-Name-Last: Martuscelli
Title: Globalization and wage inequality: evidence from Italian local labor markets
Abstract: 
 Concerns about rising inequality and its economic, social and political consequences have been gaining traction in public discourse. However, despite a substantial body of research, the factors behind the rising inequality are still widely debated. This paper analyzes the impact of Chinese import penetration on the wage distribution using Italian administrative data on the universe of private, non-agricultural sector employees between 1991 and 2016. The findings show no support for the hypothesis that increased competition from Chinese imports has contributed to increased wage inequality in Italy. However, import penetration has had a negative effect on wages at different points of the distribution, leaving overall inequality substantially unaffected.
Journal: Applied Economics
Pages: 6082-6097
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061902
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061902
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:52:p:6082-6097



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2056129_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiaokang Zhao
Author-X-Name-First: Xiaokang
Author-X-Name-Last: Zhao
Author-Name: Guanghe Ran
Author-X-Name-First: Guanghe
Author-X-Name-Last: Ran
Author-Name: Bing Shen
Author-X-Name-First: Bing
Author-X-Name-Last: Shen
Author-Name: Xiaolong Li
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Li
Title: Does ETF activity reduce stock price volatility—Evidence from the A-share market
Abstract: 
 The scale of global exchange-traded funds (ETFs) has shown an explosive growth trend; however, research on the impact of ETF activity on the stock market is still in its infancy. While ETFs increase the volatility of the U.S. stock market, there is scant literature on the impact of ETF activity on the volatility of the emerging A-share market. Owing to the large differences in the institutional and investor structure of the A-share market, will there be significant differences in the impact of ETFs on the volatility of the A-share market? This study found that ETF activity significantly reduced idiosyncratic volatility but increased systemic volatility. Since the decrease in idiosyncratic volatility was greater than the increase in systemic volatility, the overall volatility showed a downward trend. Further research on the impact mechanism showed that the idiosyncratic volatility of the A-share market was positively correlated with noise information. ETF activity reduced idiosyncratic volatility by reducing the noise information. Systematic volatility was positively correlated with faster information integration speed. ETF activity improved systematic volatility by improving information integration speed. This study elucidated the impact of ETF activity on stock price volatility under different market backgrounds.
Journal: Applied Economics
Pages: 6036-6053
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056129
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056129
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:52:p:6036-6053



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2108540_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Deniz Şükrüoğlu
Author-X-Name-First: Deniz
Author-X-Name-Last: Şükrüoğlu
Title: Effects of Covid-19 on the BIST 100 network structure
Abstract: 
 This article investigates the effects of Covid-19 on the network structure of BIST 100 firms. Analysis are carried out with filtered daily volatilities. Even after filtering out common factors, correlation and autocorrelation heat maps of the filtered volatilities indicate that there are still some patterns. Granger and contemporaneous type volatility networks are estimated and visualized for both the pre-Covid-19 and Covid-19 periods to determine the network structure differences. The article shows that there are centrality-type structures in the Granger network and chain-type linkages in the contemporaneous network for the pre-Covid-19 periods. The degree of interconnectedness is multiplied three times in the Granger network and eight times in the contemporaneous network with Covid-19.
Journal: Applied Economics
Pages: 5991-6007
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2108540
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108540
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:52:p:5991-6007

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2057912_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Hao Wu
Author-X-Name-First: Hao
Author-X-Name-Last: Wu
Author-Name: Yinghua Ren
Author-X-Name-First: Yinghua
Author-X-Name-Last: Ren
Author-Name: Dongwei Yu
Author-X-Name-First: Dongwei
Author-X-Name-Last: Yu
Title: Time-frequency effect of investor sentiment, economic policy uncertainty, and crude oil on international stock markets: evidence from wavelet quantile analysis
Abstract: 
 This paper employs the wavelet-based quantile method to examine the time and frequency effect of investor sentiment, economic policy uncertainty, and crude oil on emerging and developed stock markets over the monthly sample range from September 2005 to December 2020. We first explore the relationship between various markets, and our empirical results reveal a strong long-term spillover effect of sentiment on returns from developed to emerging markets. Meanwhile, we find the negative influence of EPU gradually strengthens from the short-term towards the long-term. Further, oil shocks to stock returns are highly related to investment horizons and market circumstances. Specifically, the correlation is negative in the medium-term while positive in the short- and long-term, and more evident when stock markets are in a bearish or bullish state. In short, investors should take the structure dependence in terms of time and frequency when participating in financial markets.
Journal: Applied Economics
Pages: 6116-6146
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2057912
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2057912
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:53:p:6116-6146



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2057911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Insook Lee
Author-X-Name-First: Insook
Author-X-Name-Last: Lee
Title: Revisiting the Meltzer-Richard hypothesis of pretax income inequality and income tax rate
Abstract: 
 The Meltzer-Richard hypothesis maintains that higher pretax income inequality entails higher income tax rate chosen by majority-rule voting. However, empirical studies found evidence against the Meltzer-Richard hypothesis. This article reconsiders the Meltzer-Richard hypothesis by dropping their assumption of lump-sum transfers. It finds that the Meltzer-Richard hypothesis is not robust to relaxing the lump-sum transfer assumption. Without lump-sum transfers, the Meltzer-Richard hypothesis no longer holds, as the effect of pretax income inequality on politico-economic equilibrium income tax rate is no longer certainly positive.
Journal: Applied Economics
Pages: 6108-6115
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2057911
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2057911
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:53:p:6108-6115



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2056572_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lan Zhang
Author-X-Name-First: Lan
Author-X-Name-Last: Zhang
Author-Name: Jiancheng Wang
Author-X-Name-First: Jiancheng
Author-X-Name-Last: Wang
Author-Name: Yao Xiao
Author-X-Name-First: Yao
Author-X-Name-Last: Xiao
Title: How do entrepreneurs’ characteristics affect R&D expenditure? Evidence from small and micro Chinese firms
Abstract: 
 Drawing on data from more than 3000 small and microChinese firms, this paper studies the determinants of R&D spending, focusing on the entrepreneurs’ attributes. The characteristics of an entrepreneur can be crucially relevant in determining investment by small and micro firms in a risky undertaking like R&D. Results show that male owners and college graduates are more likely to invest in R&D, while older owners are less likely to do so. Previous work and entrepreneurial experience contributed to the propensity to invest in R&D but work experience in the government do not matter. Regarding ownership attributes, individual owners are less likely to invest in R&D, whereas the effect of private ownership is statistically insignificant. Other than that, we find that higher firm sales spur R&D spending, with the influences of leverage and return on assets being statistically insignificant.
Journal: Applied Economics
Pages: 6098-6107
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056572
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056572
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:53:p:6098-6107



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2059437_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Aliaa El Shoubaki
Author-X-Name-First: Aliaa
Author-X-Name-Last: El Shoubaki
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Rébecca Stekelorum
Author-X-Name-First: Rébecca
Author-X-Name-Last: Stekelorum
Author-Name: Jiří Hnilica
Author-X-Name-First: Jiří
Author-X-Name-Last: Hnilica
Title: CEO satisfaction and SME innovation: unveiling the role of family involvement
Abstract: 
 Family involvement in SMEs can affect strategic decisions about innovation. The differences in the innovative behaviours between family and nonfamily SMEs are mostly attributed to socioemotional wealth, which emphasizes the noneconomic goals of family firms. The literature on how family involvement affects firm innovation remains inconclusive. In this study, we distinguish the different steps of innovation and use CEO satisfaction with business performance to show that greater family involvement is ultimately good for innovation performance. We examine how CEO satisfaction with business performance affects firm innovation and, in particular, how family involvement affects this relationship. Using a sample of 308 Czech SMEs and multiple mediation and moderated mediation analyses, we find that high levels of family involvement enhanced SMEs innovation performance by strengthening the influence of CEO satisfaction on product innovation.
Journal: Applied Economics
Pages: 6160-6178
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2059437
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2059437
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:53:p:6160-6178



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2061901_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Adian McFarlane
Author-X-Name-First: Adian
Author-X-Name-Last: McFarlane
Author-Name: Anupam Das
Author-X-Name-First: Anupam
Author-X-Name-Last: Das
Author-Name: Leanora Brown
Author-X-Name-First: Leanora
Author-X-Name-Last: Brown
Author-Name: Kaycea Campbell
Author-X-Name-First: Kaycea
Author-X-Name-Last: Campbell
Title: The remittance-food security dynamics in Jamaica
Abstract: 
 It is an unsettled question whether the impact of remittance inflows (remittances) on food security is positive, negative, or null. We examine this question for Jamaica, the first for such a high remittance-receiving country. To start, we discuss the issues related to food security and remittances. Next, buttressed by theoretical underpinnings , we measure food security as calorie consumption and empirically evaluate how it is impacted by remittances in Jamaica over the period 1976 to 2019. We employ impulse response function analysis and Granger causality testing, within a robust vector error correction modelling framework. There are two key findings. First, we find a cointegrating relationship wherein the impulse analysis indicates that remittances positively impact calorie consumption in the long run, and vice versa. Second, we find that there is bidirectional Granger causality between remittances and calorie consumption. One implication of our findings is that remittances should form part of any broad developmental poverty alleviation polices, given their impact on promoting food security.
Journal: Applied Economics
Pages: 6202-6215
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061901
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061901
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:53:p:6202-6215



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2058696_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Valentina Demchuk
Author-X-Name-First: Valentina
Author-X-Name-Last: Demchuk
Title: Does intra-bloc trade affect insurance companies’ performance? Evidence from North America
Abstract: 
 This paper examines the effects of intra-bloc trade on the earnings and operating expenses of insurance companies. The share of exports (imports) to other countries that are members of the trade agreement in the country’s exports (imports) of direct insurance services are used as relative measures of intra-bloc trade. We use data on insurance companies located in North America (Canada and the United States of America) from 2005 to 2018. The production function is assumed to be transcendental logarithmic. Results show that a higher share of other member countries in the exports of direct insurance services has a small impact on profits, yet it is only weakly statistically significant. It does, however, lead to lower operating expenses for non-life firms. A relatively higher import share is associated with increasing operating expenses of life insurance companies with an elasticity of 0.08% without significantly reducing profits.
Journal: Applied Economics
Pages: 6147-6159
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2058696
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2058696
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:53:p:6147-6159



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2059438_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mukesh K. Chaudhry
Author-X-Name-First: Mukesh K.
Author-X-Name-Last: Chaudhry
Author-Name: Vivek Bhargava
Author-X-Name-First: Vivek
Author-X-Name-Last: Bhargava
Author-Name: Henry Shelton Weeks
Author-X-Name-First: Henry Shelton
Author-X-Name-Last: Weeks
Title: Impact of economic forces and fundamental variables on REIT returns
Abstract: 
 We examine the impacts of economic forces and fundamental variables on REIT returns. Our models endogenously select breakpoints to distinguish the heterogenous nature of the underlying properties with varying risk-return characteristics. Default risk premium and unanticipated inflation had an adverse effect, while GDP and federal funds rate had a positive effect on REITs. Market, size and value risk-premiums are significant for time periods that include the GFC but not for subsequent periods. Momentum is negative and significant for extreme events, and insignificant during calm periods. Higher beta values during the GFC followed by lower beta values confirm ‘leveraging’ and ‘deleveraging’ effects.
Journal: Applied Economics
Pages: 6179-6201
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2059438
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2059438
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:53:p:6179-6201

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083068_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Duane W. Rockerbie
Author-X-Name-First: Duane W.
Author-X-Name-Last: Rockerbie
Author-Name: Stephen T. Easton
Author-X-Name-First: Stephen T.
Author-X-Name-Last: Easton
Title: Race to the podium: separating and conjoining the car and driver in F1 racing
Abstract: 
 This paper provides a statistical estimate of the breakdown in race outcomes in Formula One races between the two most important inputs: driver skill and car technology. Financial data and racing results from the 2012–19 F1 seasons are used to estimate a combined driver and team fixed effects FGLS regression model for each season. Treating each season uniquely allows for the exclusion of weather and track specific variables common to other statistical studies of F1 racing. Our use of financial data provides an answer to the economic question of how should F1 teams allocate their scarce financial resources. The so-called “80-20” rule distinguishing team effects and driver effects is found to be a very rough approximation to the output shares for teams and drivers. A strong complementarity exists between driver skill and car technology that distorts the rule. The return to driver salaries and team budgets are both positive in term of race outcomes, but at diminishing rates.
Journal: Applied Economics
Pages: 6272-6285
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083068
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083068
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:54:p:6272-6285



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083065_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abdullah Mohammed Almalki
Author-X-Name-First: Abdullah Mohammed
Author-X-Name-Last: Almalki
Author-Name: Mehboob-ul Hassan
Author-X-Name-First: Mehboob-ul
Author-X-Name-Last: Hassan
Author-Name: Md Fouad Bin Amin
Author-X-Name-First: Md Fouad Bin
Author-X-Name-Last: Amin
Title: The asymmetric relationship between structural oil shocks and food prices: evidence from Saudi Arabia
Abstract: 
 This paper examines the impacts of structural oil shocks, namely, the index of industrial production, world production of oil, and spot crude oil prices on the food prices in Saudi Arabia between 1986 and 2020 using nonlinear autoregressive distributed lags (NARDL) and Structural Vector Autoregressive (S-VAR) models to capture both short- and long-run asymmetries between these variables. The asymmetry between industrial production and food price in the short- and long-run was revealed and the impact of negative shocks of industrial production on the food prices was dominant. This implies that lower economic activities result in declined industrial production and food shortage which exerts a hike in food prices. With respect to Saudi Arabia, a significant relationship between negative shocks in crude oil prices and food prices was found in short- as well as long-run periods. The estimations also reveal that increases in oil supply result in a decline in food prices decrease in both periods of time. Similarly, a positive association between GDP growth and food prices was found. Finally, the oil supply shocks are found as the main factor, followed by the oil demand shocks and crude oil prices, causing the food price variation in Saudi Arabia.
Journal: Applied Economics
Pages: 6216-6233
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083065
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083065
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:54:p:6216-6233



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083067_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yared Seid
Author-X-Name-First: Yared
Author-X-Name-Last: Seid
Title: Mother-tongue instruction and later labour market outcomes: evidence from a natural experiment in Ethiopia
Abstract: 
 This paper offers empirical evidence on the effect of mother-tongue instruction in primary school on students’ later labour market outcomes. Since Ethiopia has adopted mother-tongue instruction after the 1994 Ethiopian education reform, many students who have attended primary school after 1994 are exposed to mother tongue instruction, resulting in a variation in exposure to mother-tongue instruction by birth cohort. In Amhara state, Amharic is adopted as medium of instruction both before and after the education reform whereas other states in Ethiopia have changed the medium of instruction after the 1994 reform. The duration of students’ exposure to mother-tongue instruction, however, varies depending on the state in which they have attended primary school since states in Ethiopia mandate a switch from mother-tongue to English instruction either in grade 5, 7, or 9. Exploiting these two plausibly exogenous sources of variations (across states and birth cohorts) and using data from the 2013 Ethiopian Labour Force Survey, we estimate difference-in-differences model. Estimates from our preferred specifications suggest that mother-tongue instruction in primary school improves later labour market outcomes, but the size of its effect decreases with the number of years an individual was exposed to mother-tongue instruction in primary school.
Journal: Applied Economics
Pages: 6254-6271
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083067
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083067
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:54:p:6254-6271



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083069_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mehreen Mookerjee
Author-X-Name-First: Mehreen
Author-X-Name-Last: Mookerjee
Author-Name: Manini Ojha
Author-X-Name-First: Manini
Author-X-Name-Last: Ojha
Author-Name: Sanket Roy
Author-X-Name-First: Sanket
Author-X-Name-Last: Roy
Title: Fertility targets: linkages between desire for sons and sterilization in India
Abstract: 
 Sterilization is the most widely used form of family planning in India with the burden of sterilization falling almost entirely on women. The existence of a strong son preference and a male-biased sex ratio are also well known in India. In this paper, we investigate the inter-linkages between female sterilization and the desire for sons in the country. Specifically, we examine the causal impact of a woman’s fertility targets for sons being met on her sterilization decision. To measure whether her fertility target is met, we utilize information on her actual versus ideal number of sons. Exploiting exogenous variation in the sex of the firstborn as an instrument in a conditional mixed process estimation, we find that meeting her fertility target for sons increases the probability of a woman’s sterilization by 25.4% points. Moreover, once she has had her ideal number of sons, the probability of getting sterilized within 4 years of getting married increases by 9.4% points whereas delayed sterilization becomes less likely. Our estimates are robust to alternative estimation strategies.
Journal: Applied Economics
Pages: 6286-6302
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083069
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083069
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:54:p:6286-6302



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2061904_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Anamika Anamika
Author-X-Name-First: Anamika
Author-X-Name-Last: Anamika
Author-Name: Sowmya Subramaniam
Author-X-Name-First: Sowmya
Author-X-Name-Last: Subramaniam
Title: Do news headlines matter in the cryptocurrency market?
Abstract: 
 The paper examines the influence of investor sentiment based on news headlines on the Cryptocurrency Market Index and ten individual cryptocurrency returns. We capture investors’ sentiment from cryptocurrency-specific news headlines. We use a lexicon-based Natural Language Processing (NLP) technique to construct a unique sentiment indicator, and the sentiment scores are generated using two financial dictionaries: Henry(2008)(HE) and Loughran and Mcdonald(2011)(LM). The findings of the study show that news sentiment has a significant impact on cryptocurrency returns. When the investors’ sentiment is optimistic or bullish, the cryptocurrency market experiences herding behaviour, leading to an increase in prices. The diverse and heterogeneous nature of the various cryptocurrencies causes each individual cryptocurrency to respond differently to sentiment. Further, we see that sentiment has a more pronounced impact on young, small, and volatile cryptocurrencies. Our study is among the few studies that use cryptocurrency-specific news headlines rather than news bodies to build a news sentiment indicator. JEL codes: E49, G14, G15
Journal: Applied Economics
Pages: 6322-6338
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061904
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061904
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:54:p:6322-6338



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083066_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mukhriz Izraf Azman Aziz
Author-X-Name-First: Mukhriz Izraf Azman
Author-X-Name-Last: Aziz
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Tatiana Sokolova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Sokolova
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: ASEAN-5 forex rates and crude oil: Markov regime-switching analysis
Abstract: 
 We investigate the influence of moves in oil prices on exchange rates of Indonesia, Malaysia, the Philippines, Singapore and Thailand (the ASEAN-5 countries). We disentangle oil shocks, representing them by three components: demand shock, supply shock and risk shock, and examine their impact on the ASEAN-5 exchange rates by employing high-/low-volatility Markov regime-switching regressions for the period 2006 to Beckmann, Czudaj, and Arora 2020. We find that demand shocks make forex rates increase for net oil-producing as well as net oil-consuming economies. The impacts of supply shocks on forex rates for most economies are rather low. The risk shocks lead to depreciating effects on the ASEAN-5 currencies, supporting the notion that the open-oriented nature of ASEAN-5 economies makes them susceptible to constant fluctuations in the global oil market.
We study interactions between the price of crude oil and exchange rates of the ASEAN-5 economies.We decompose changes in oil price into demand-, supply- and risk-driven components.We show non-linear interrelations between movements in forex rates and price of oil.Demand shocks appreciate forex rates for both net oil-producer and net oil-consumer economies.Supply-driven moves in oil prices exercise a marginal influence on forex rates for most countries.Risk shocks have depreciating effects on the ASEAN-5 exchange rates.
Journal: Applied Economics
Pages: 6234-6253
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083066
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083066
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:54:p:6234-6253



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083568_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kangoh Lee
Author-X-Name-First: Kangoh
Author-X-Name-Last: Lee
Title: Federalism and primary-income inequality
Abstract: 
 The paper studies the effects of federalism on primary-income (before taxes and transfers) inequality. A jurisdiction in a federal system chooses an economic policy for the interests of the jurisdiction, but the policy is determined uniformly at the national level in a unitary system. A jurisdiction with more resources can choose a higher level of public inputs such as productivity-enhancing investment and hence attract more businesses in a federal system, but a jurisdiction in a unitary system cannot. More business activities result in higher incomes, and income inequality is higher in a federal system than in a unitary system. The paper also provides an empirical analysis, and available evidence suggests that primary-income inequality is higher in a federal system.
Journal: Applied Economics
Pages: 6303-6321
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083568
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083568
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:54:p:6303-6321

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2063790_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tu Van Binh
Author-X-Name-First: Tu Van
Author-X-Name-Last: Binh
Author-Name: Abay Mulatu
Author-X-Name-First: Abay
Author-X-Name-Last: Mulatu
Author-Name: Boying Xu
Author-X-Name-First: Boying
Author-X-Name-Last: Xu
Title: Corporate social responsibility & firm efficiency: evidence from endogenous cost inefficiency stochastic frontier analysis
Abstract: 
 This paper investigates the relationship between firms’ performance in corporate social responsibility (CSR) and cost efficiency. We use a newly developed panel data model of stochastic frontier analysis that endogenizes cost efficiency. The dataset consists of 1,673 firms from ten provinces in Vietnam over three years: 2009, 2011 and 2013. Our results suggest that CSR can enhance cost efficiency of firms. This positive effect of CSR on efficiency can be masked if cost efficiency is treated as exogenous or endogeneity is not handled appropriately. The upshot is that our results challenge the widely held view of the existence of a trade-off between CSR and firm efficiency.
Journal: Applied Economics
Pages: 6380-6392
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2063790
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2063790
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:55:p:6380-6392



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2066061_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Juan Peng
Author-X-Name-First: Juan
Author-X-Name-Last: Peng
Author-Name: Jinhong Wang
Author-X-Name-First: Jinhong
Author-X-Name-Last: Wang
Author-Name: Jinqiang Yang
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Yang
Title: Pandemic options
Abstract: 
 We develop a pricing model for pandemic European call and put options, in which the underlying variable is the infected population. Interestingly, the economic predictions of the pandemic options are essentially different from the common stock option. For example, the value of pandemic call option is concave in the underlying variable and decreasing in the volatility. In addition, the maturity has ambiguous impact on the valuation of pandemic call option. We show that the basic reproduction number, the unique characteristics of pandemic, has a significant effect on the valuation of each options.
Journal: Applied Economics
Pages: 6437-6444
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2066061
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2066061
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:55:p:6437-6444



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2064969_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jinqiang Xu
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Xu
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Author-Name: Hui Jiang
Author-X-Name-First: Hui
Author-X-Name-Last: Jiang
Title: Can China’s Aid Promotes the Value Added Exports of Recipient Countries?
Abstract: 
 This paper explores whether China’s aid is able to promote the value added exports of the recipient countries based on the fact that the gross export under the traditional accounting system can no longer reflect the current real trade gains of a country. The research results indicate that China’s aid can indeed effectively promote the value added exports of the recipient countries. Moreover, this paper used the interaction term between China’s foreign exchange reserve and the frequency of U.S. historical foreign aid as the instrumental variable to deal with the endogenous problem. In addition, the heterogeneity test shows that the geographical environment and development level of recipient countries will affect the relationship between China’s aid and the value added export of recipient countries. Finally, the mechanism test shows that improving the infrastructure conditions of recipient countries is an important channel for China’s aid to promote the value added export of recipient countries. These findings of our research provide both theoretical and empirical evidence for improving the efficiency of foreign aid.
Journal: Applied Economics
Pages: 6418-6436
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2064969
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2064969
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:55:p:6418-6436



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2061905_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dror Parnes
Author-X-Name-First: Dror
Author-X-Name-Last: Parnes
Title: Spatial autocorrelation patterns among US commercial banks: before, during and after the subprime mortgage crisis
Abstract: 
 We study patterns of spatial autocorrelations of four customary performance measures (return on asset, return on equity, net interest margin, and loan loss reserves to total assets) among 49 commercial banks spread in the continental US from the first quarter of 2000 until the fourth quarter of 2010, before and after the subprime mortgage crisis. We use Moran’s I, Geary’s C, and Conley’s one-metric and two-metric spatial autocorrelation methodologies and discover mostly positive (negative) spatial autocorrelations before (during and after) the US subprime mortgage crisis. We also identify the unique influences of size and risk management practices in these commercial banks on the spatial autocorrelations within the two tested periods. Our findings suggest that among many US commercial banks, unifying economic features were more dominant before the crisis, but they were gradually replaced with dividing economic elements during and after this major financial calamity. Our robust evidence aim to highlight the influence of physical distances among commercial banks on their routine operations.
Journal: Applied Economics
Pages: 6339-6360
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061905
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061905
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:55:p:6339-6360



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2064419_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mattias Boman
Author-X-Name-First: Mattias
Author-X-Name-Last: Boman
Title: The sample median as an estimator of population mean true willingness to pay under valuation uncertainty: a synthesis and analysis of the literature
Abstract: 
 This paper reviews the contingent valuation literature on hypothetical bias and valuation uncertainty, with special emphasis on measures of central tendency suitable for applied welfare analysis. In a theoretical scenario without valuation uncertainty, sample mean willingness to pay (WTP) is an estimator of population mean true WTP, the appropriate welfare measure. It is proposed here that this may not hold under valuation uncertainty. In this case, mean true WTP should be bounded by mean hypothetical WTP and mean actual WTP (in turn, mean actual WTP should exceed mean certain WTP). Based on a theoretical model and a review of existing empirical studies, median hypothetical WTP was found to be an estimator of mean true WTP. It is therefore proposed that contingent valuation researchers should consider using the sample hypothetical median as an estimator of population mean true WTP when supporting data on the degree of valuation uncertainty are absent. This could be a straightforward approach, e.g. in a low income country context, where the possibility of financing elaborate research designs accounting for valuation uncertainty is limited. It can also prove useful to revisit existing contingent valuation studies with these findings in mind.
Journal: Applied Economics
Pages: 6393-6405
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2064419
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2064419
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:55:p:6393-6405



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2061906_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yinhe Liang
Author-X-Name-First: Yinhe
Author-X-Name-Last: Liang
Author-Name: Shuang Yu
Author-X-Name-First: Shuang
Author-X-Name-Last: Yu
Title: Does education help combat early marriage? The effect of compulsory schooling laws in China
Abstract: 
 This paper studies the relationship between education and early marriage by exploiting the 1986 Compulsory Schooling Laws in China. We find that one additional year of schooling decreases the probability of marriage before age 18 by 1.7% points and increases the age at first marriage by 0.734 years. We examine the role of labour market outcomes, marriage traditions, assortative mating, and peer marriage behaviours. We also find evidence that education decreases fertility outcomes and affects the marriage outcomes of the next generation. This suggests that policies aimed at combating early marriage could start with improving children’s educational attainment.
Journal: Applied Economics
Pages: 6361-6379
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061906
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061906
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:55:p:6361-6379



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2064420_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Manu Raghav
Author-X-Name-First: Manu
Author-X-Name-Last: Raghav
Author-Name: Timothy M. Diette
Author-X-Name-First: Timothy M.
Author-X-Name-Last: Diette
Title: Greek myth or fact? The role of Greek houses in alcohol and drug violations on American campuses
Abstract: 
 Greek-letter student social groups, better known as fraternities and sororities, are a ubiquitous feature on many American higher education campuses. These organizations, especially fraternities, have a reputation for encouraging unruly and improper behaviour among both members and non-members. This paper investigates the effect of the degree of prevalence of these Greek organizations at a campus, as measured by the percentage of students who are members of fraternities and sororities, on the instances of liquor and drug law violations on campuses, as measured by the number of arrests for liquor and drug laws violations. Using a unique dataset, which combines data from three sources, we address any potential selection bias by including several controls associated with party culture and through the inclusion of institution-level fixed effects. We find that a larger percentage of students in fraternities (but not sororities) is associated with an increase in the number of arrests for drug law violations. A larger percentage of students in sororities (but not the percentage of students in fraternities) is associated with a larger number of arrests for liquor law violations. This result is highly significant and is robust across various specifications.
Journal: Applied Economics
Pages: 6406-6417
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2064420
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2064420
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:55:p:6406-6417

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2069671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Siqi Li
Author-X-Name-First: Siqi
Author-X-Name-Last: Li
Author-Name: Yunjie Wu
Author-X-Name-First: Yunjie
Author-X-Name-Last: Wu
Title: Government subsidies, ownership structure and operating performance of state-owned enterprises: evidence from China
Abstract: 
 Government subsidies have been used as a policy tool by many countries. Given the importance of government subsidies in the context of Chinese economy and state-owned enterprises (SOEs), this study seeks to understand the role played by government subsidies in the operating performance of Chinese SOEs. Using panel data on Chinese SOEs to construct the fixed-effects regression models, this study examines the effects of government subsidies and explores the moderating role of ownership structure in the correlation between government subsidies and operating performance of SOEs. Government subsidies have improved the operating performance of SOEs through easing financial constraints and stimulating research investment. However, high proportion of state-owned shares is not conducive to the positive effect of subsidies. The heterogeneous analyzes show, for SOEs located in eastern China, at the local level or with a higher R&D level, an increase in state-owned shares is more detrimental to the positive effect of subsidies on their performance. Tax-based-subsidies have significantly positive effect on the operating performance of SOEs, with the state-owned shares exerting a negative moderating effect on this positive correlation. Based on the empirical findings, we propose some policy suggestions for the mixed ownership reform of Chinese SOEs and reasonable allocation of government subsidies.
Journal: Applied Economics
Pages: 6480-6496
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2069671
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2069671
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:56:p:6480-6496



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2071829_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Michel Cândido de Souza
Author-X-Name-First: Michel Cândido
Author-X-Name-Last: de Souza
Title: Modeling Ambiguity and Risk in Inflation Expectations: Empirical Analysis for Brazil
Abstract: 
 For developing economies, agents’ disagreement (risk) about future inflation can be tricky, mostly when the range of possibilities is not clear (ambiguity). We use the Brazilian survey of inflation forecasts to model ambiguity and risk in inflation expectations, considering 1, 6, and 12 months ahead. Our results indicate that an ambiguity inflation expectations shock (6 and 12 months time window) can negatively affect Brazilian economic cycles. On the other hand, risk shocks seem to have a moderate and significant effect only for 1 month ahead of expectations. This evidence shows that the maintenance of short and medium-run monetary policies, such as forward guidance, may depend on dynamics that go beyond first-order volatility.
Journal: Applied Economics
Pages: 6521-6535
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2071829
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2071829
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:56:p:6521-6535



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2066619_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Marcelo Florensa
Author-X-Name-First: Marcelo
Author-X-Name-Last: Florensa
Author-Name: David Giuliodori
Author-X-Name-First: David
Author-X-Name-Last: Giuliodori
Author-Name: Alejandro Rodriguez
Author-X-Name-First: Alejandro
Author-X-Name-Last: Rodriguez
Title: The price elasticity of casino gambling: a case study in Argentina
Abstract: 
 This paper expands on the scarce literature about the demand for casino gaming, particularly on electronic gaming machines (EGM). A dynamic panel data model is proposed for estimating the price elasticity of demand for slot machines in casinos located in Argentina. As far as we know, no similar study for Argentina or any other Latin American country has been previously conducted. In our study, the estimation of the elasticity coefficients was carried out by means of a procedure that corrects the construction bias generated by the model, something that has not been applied in the literature so far. The results, unlike most of the literature, show elasticity values greater than one in absolute value. Additionally, elasticities observed for touristic regions were greater (in absolute value) than for non-tourist areas.
Journal: Applied Economics
Pages: 6445-6455
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2066619
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2066619
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:56:p:6445-6455



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2066620_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jaimin Lee
Author-X-Name-First: Jaimin
Author-X-Name-Last: Lee
Author-Name: Minjung Kim
Author-X-Name-First: Minjung
Author-X-Name-Last: Kim
Title: Internal and outsourced research and development: are they complements or substitutes?
Abstract: 
 A theoretically ambiguous relationship exists between internal and outsourced research and development (R&D). Along these lines, previous empirical studies report mixed results regarding the nexus between these two broad forms of R&D activity. Using a firm-level unbalanced panel dataset from South Korea for the period 2006–2018, this study investigates the relationship between internal and outsourced R&D while considering the sunk cost of internal R&D activity and the technology level of firms. We find that the relationship between internal and outsourced R&D depends on the level of industry technology and the size of firms. A complementarity exists between internal and external R&D for larger firms in high-technology industries, while a substitutive relationship is discovered for small and medium-sized firms in medium- and low-technology industries. The results suggest that the complementary or substitutive nature of the relationship between internal and external R&D depends on the industry’s technology level and firm size.
Journal: Applied Economics
Pages: 6456-6466
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2066620
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2066620
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:56:p:6456-6466



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2066621_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhuwei Li
Author-X-Name-First: Zhuwei
Author-X-Name-Last: Li
Author-Name: Xuejiao Lu
Author-X-Name-First: Xuejiao
Author-X-Name-Last: Lu
Author-Name: Yuan Fu
Author-X-Name-First: Yuan
Author-X-Name-Last: Fu
Title: Interaction influence of trading rules on the quality of stock markets: the price limit rule and day trading rule from the Shanghai and Shenzhen Stock exchanges
Abstract: 
 The effect of each trading rule is not completely independent. From the perspective of market differentiation, we establish the linear simultaneous equation model to study the comprehensive influence of the price limit rule and the day trading rule on the quality of China’s stock market and investigate whether it is a synergistic or an anti-synergistic effect. To eliminate the influence of other factors before or after the reform of the trading rules, we establish the difference-in-difference simultaneous equation model for further testing. Results show that when the stock market is divided into the Shanghai A-share market, the Shanghai B-share market, the Shenzhen A-share market, and the Shenzhen B-share market, the simultaneous implementation of the price limit rule and T + 1 trading rule significantly reduces the liquidity and market efficiency of the stock market, significantly increases the volatility of markets, and does harm to the market quality. The interaction effect further aggravates the adverse impact of a single trading rule on the liquidity and market efficiency of the stock market, and weakens the beneficial impact of implementing a single trading rule to stabilize the market. The interaction effect has an anti-synergistic effect, and the results are robust.
Journal: Applied Economics
Pages: 6467-6479
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2066621
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2066621
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:56:p:6467-6479



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2069672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Masahito Kobayashi
Author-X-Name-First: Masahito
Author-X-Name-Last: Kobayashi
Author-Name: Jinghui Chen
Author-X-Name-First: Jinghui
Author-X-Name-Last: Chen
Title: Analyzing the EU sovereign debt crisis by a new asymmetric copula with reversible correlations
Abstract: 
 It is well known that a correlation between stock and bond returns had changed in the financial crisis. This paper analyzes it using a novel asymmetric copula. The proposed test is constructed from bivariate split normal distribution and can change correlation signs of upper and lower tails of distribution independently. It is shown that the stock–bond correlation of the EU periphery countries in the capital outflow period is asymmetric, in that it is higher in the lower tail than in the upper tail. The lower tail correlation is higher when capital outflowed than in the calm period. The lower tail correlation sign in the inflow period was at odds; Ireland, Italy and Spain had negative lower tail correlation. The correlation reversion of these three countries can be explained by the change of capital movement from inflow to outflow. In contrast, Germany had negative stock–bond correlation before and after the crisis.
Journal: Applied Economics
Pages: 6497-6509
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2069672
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2069672
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:56:p:6497-6509



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2070594_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: George Deltas
Author-X-Name-First: George
Author-X-Name-Last: Deltas
Author-Name: Hui Wen
Author-X-Name-First: Hui
Author-X-Name-Last: Wen
Title: Do voluntary corporate activities lead to reporting regulation? evidence from corporate social responsibility
Abstract: 
 Governments and regulators often introduce reporting standards to encourage desirable corporate activities through increasing information quality. Firms that voluntarily take socially desirable activities directly benefit from these standards by being better able to distinguish them against rivals in the product market or with respect to investors. Using a cross-country panel dataset, we find that, at an annual frequency, Corporate Social Responsibility (CSR) reports increase the prevalence of voluntary CSR reporting standards, but little evidence that the converse is true. Thus, at least in the short-run, reporting standards act as an ex-post certification for firms with high CSR activity rather than as an ex-ante incentive for corporate behaviour.
Journal: Applied Economics
Pages: 6510-6520
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2070594
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2070594
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:56:p:6510-6520

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2073330_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Amado Peiró
Author-X-Name-First: Amado
Author-X-Name-Last: Peiró
Title: Predicting stock returns: some European evidence
Abstract: 
 This paper examines the predictability of stock returns for different European sectors. Using monthly returns from 14 industries for the period 1988–2019, it is found that past movements in some industries do help to forecast future movements in other industries. Nevertheless, results also show that this relationship emerges in the years between 1999–2009, but disappears afterwards.
Journal: Applied Economics
Pages: 6596-6604
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2073330
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2073330
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:57:p:6596-6604



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2072806_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shuai Chen
Author-X-Name-First: Shuai
Author-X-Name-Last: Chen
Author-Name: Zhenzheng Meng
Author-X-Name-First: Zhenzheng
Author-X-Name-Last: Meng
Author-Name: Chen Ji
Author-X-Name-First: Chen
Author-X-Name-Last: Ji
Author-Name: Ying Zhang
Author-X-Name-First: Ying
Author-X-Name-Last: Zhang
Title: Unintended effects of water regulation on household livelihood: evidence from China
Abstract: 
 This study examines the unintended effects of the water regulation on household livelihood in China, from the perspective of Engel coefficient. Applying county-level water regulation dataset and CFPS household dataset in a difference-in-difference-difference (DDD) specification, the research finds that the regulation increases the Engel coefficient by an additional 2.6%. Mechanism analyses show that water regulation influences the Engel coefficient through increasing household food expenditure, as it also causes local market fluctuations in meat products. Overall, this study sheds new light on the economic costs of environmental regulation.
Journal: Applied Economics
Pages: 6580-6595
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2072806
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2072806
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:57:p:6580-6595



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_1951441_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Noriyuki Kunimoto
Author-X-Name-First: Noriyuki
Author-X-Name-Last: Kunimoto
Author-Name: Kazuhiko Kakamu
Author-X-Name-First: Kazuhiko
Author-X-Name-Last: Kakamu
Title: Is Bitcoin really a currency? A viewpoint of a stochastic volatility model
Abstract: 
 Using an asymmetric stochastic volatility model, this study investigates the day-of-the-week and holiday effects on the returns and volatility of Bitcoin from 1 January 2013 to 31 August 2019; in this context, we also discuss the characteristics of Bitcoin as a financial asset. The results of the estimation are threefold. First, the finding shows a small day-of-the week effect in volatility on Saturday and Sunday than in the rest of the week. Second, although the holiday effects are examined in active trading countries, namely Japan, China, Germany, and the United States, the positive post-holiday effect on the returns and weak positive pre-holiday effect on the volatility are only observed in the United States. Finally, the asymmetry effect is not observed. A comparison of Bitcoin to several assets such as stock, currency, and gold shows Bitcoin’s positioning between stock, currency, and gold in relation to the week and holiday effects, its reaction to federal funds and medium of exchange characteristics, and the lack of asymmetry effect.
Journal: Applied Economics
Pages: 6536-6550
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2021.1951441
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1951441
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:57:p:6536-6550



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2072465_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jae Ho Yoon
Author-X-Name-First: Jae Ho
Author-X-Name-Last: Yoon
Author-Name: Katarzyna Anna Nawrot
Author-X-Name-First: Katarzyna Anna
Author-X-Name-Last: Nawrot
Title: Impact of Brexit on G7 properties
Abstract: 
 In this article, we adopted the Full Information Maximum Likelihood (FIML) Markov-switching model of Yoon to examine the contribution of the UK housing business cycle to the common G7 housing business cycle between housing price and GDP seeking to access the impact of Brexit on G7 properties. Taking a sample of G7 countries we investigated a period of over 50 years, using quarterly data from 1970:II to 2020:IV. Our findings demonstrate that UK GDP is a significant variable contributing to the G7 GDP growth, and furthermore that the UK housing price is a significant variable to the G7 housing prices. Considering common international housing business cycle, we found that the UK is not a significant variable for determining the common international housing business cycle between housing price and the real growth of output in the G7 countries. Finally, applying a FIML Markov-switching model to the G7 countries, we found a common international housing business cycle during the oil shock periods of the 1970s, the financial crisis in 2008, and COVID-19 pandemic. These findings are the first empirical evidence of the comparison of COVID-19 pandemic and other crises in terms of common international housing business cycle, thus providing significant input for policymakers.
Journal: Applied Economics
Pages: 6551-6558
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2072465
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2072465
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:57:p:6551-6558



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2073959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Daniela Bragoli
Author-X-Name-First: Daniela
Author-X-Name-Last: Bragoli
Author-Name: C. Burlina
Author-X-Name-First: C.
Author-X-Name-Last: Burlina
Author-Name: F. Cortelezzi
Author-X-Name-First: F.
Author-X-Name-Last: Cortelezzi
Author-Name: G. Marseguerra
Author-X-Name-First: G.
Author-X-Name-Last: Marseguerra
Title: Banking proximity and firm performance. The role of small businesses, community banks and the credit cycle
Abstract: 
 This article analyses the link between banking geography and firm performance, i.e. whether the proximity within banks and between banks and borrowers has a positive impact on firms’ Returns on Assets (ROA).Using a unique dataset of Italian manufacturing firms and banks from 2006 to 2011 and an instrumental variable approach to account for endogeneity, we investigate whether this effect increases with the presence of community banks and small businesses and whether the relationship changes over the credit boom and bust, which preceded and followed the Lehman Brothers collapse.We show that geographical proximity matters for firm performance especially when the presence of community banks is high and when considering small (micro) firms. During the credit boom, both functional distance and operational proximity seem to matter, whereas, during the credit crunch, operational proximity has a more relevant role compared to functional distance in becoming an important driver to increase firm’s performance.
Journal: Applied Economics
Pages: 6605-6624
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2073959
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2073959
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:57:p:6605-6624



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2078779_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Li Yang
Author-X-Name-First: Li
Author-X-Name-Last: Yang
Author-Name: Zhechen Geng
Author-X-Name-First: Zhechen
Author-X-Name-Last: Geng
Title: Impact of Digital Financial Inclusion on Optimization of Employment Structure: Evidence from China
Abstract: 
 Digital financial inclusion plays an important role in optimization of employment structure. In this article, we use panel data on 29 provinces over the period 2011 to 2018 to analyse the impact of digital financial inclusion on optimization of employment structure in China. The instrumental variables method (FE and 2SLS) is adopted to test the relationship empirically. Taking full consideration of endogeneity and verifying their robustness, our results show that digitally inclusive finance significantly drives optimization of employment structure in China, and the effect is heterogeneous. Digital financial inclusion has a significant driving effect on optimization of employment structure in eastern China. In central and western China, the driving impact is insignificant, more so in the former than the latter. We conduct further analysis, showing a positive effect of three dimensions of digital financial inclusion on employment structure optimization. From the perspective of promotion, from strong to weak, they are the depth, width and digitization of digital financial inclusion.
Journal: Applied Economics
Pages: 6625-6638
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2078779
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2078779
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:57:p:6625-6638



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2072466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chaofan Chen
Author-X-Name-First: Chaofan
Author-X-Name-Last: Chen
Author-Name: Yongsheng Lin
Author-X-Name-First: Yongsheng
Author-X-Name-Last: Lin
Author-Name: Ning Lv
Author-X-Name-First: Ning
Author-X-Name-Last: Lv
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Author-Name: Yawen Sun
Author-X-Name-First: Yawen
Author-X-Name-Last: Sun
Title: Can government low-carbon regulation stimulate urban green innovation? Quasi-experimental evidence from China’s low-carbon city pilot policy
Abstract: 
 Existing studies on the innovation effect of environmental regulation lack causal identification and do not distinguish between the types of innovation. This study regards China’s low-carbon city pilot policy (LCCPP) as a quasi-natural experiment and evaluates the impact of LCCPP on urban green innovation represented by green patents. We found that as a comprehensive government low-carbon regulation, LCCPP has significantly promoted urban green innovation and increased the annual average number of green invention patent applications by approximately 320, green utility model patent applications by approximately 210, and the total number of green patent applications by approximately 530. LCCPP can promote green innovation through capital allocation, structural upgrading, investment promotion, and comprehensive governance effects. Moreover, the impact of LCCPP on green innovation demonstrates heterogeneity. LCCPP has a greater positive effect on green innovation in energy conservation, waste management, and alternative energy and is more effective in stimulating green innovation in large cities, cities in developed eastern regions, and cities rich in educational resources. Our study verifies the existence of the Porter hypothesis in China on a city scale and indicates that, for developing countries, a comprehensive low-carbon regulation that combines mandatory and market-based instruments would be preferable for promoting green innovation.
Journal: Applied Economics
Pages: 6559-6579
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2072466
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2072466
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:57:p:6559-6579

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2078780_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Beatrice Baaba Tawiah
Author-X-Name-First: Beatrice Baaba
Author-X-Name-Last: Tawiah
Title: Does education have an impact on patience and risk willingness?
Abstract: 
 We analyse the causal effect of education on patience (also known as time preference) and risk willingness using the German compulsory schooling reform, which took effect in West Germany after World War II. This reform increased compulsory schooling from 8 years to 9 years. We use two-stage least squares to obtain causal effects. In line with the literature, the results show a positive effect of education on risk willingness mainly for those who were the immediate partakers of the reform. Contrary to the literature, a negative effect of education on patience is found. This effect is larger as more years around the pivotal years are considered.
Journal: Applied Economics
Pages: 6687-6702
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2078780
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2078780
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:58:p:6687-6702



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2075823_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Farrukh Javed
Author-X-Name-First: Farrukh
Author-X-Name-Last: Javed
Author-Name: Tamás Kiss
Author-X-Name-First: Tamás
Author-X-Name-Last: Kiss
Author-Name: Pär Österholm
Author-X-Name-First: Pär
Author-X-Name-Last: Österholm
Title: Performance analysis of nowcasting of GDP growth when allowing for conditional heteroscedasticity and non-Gaussianity
Abstract: 
 The nowcasting performance of autoregressive models for GDP growth are analysed in a setting where the error term is allowed to be characterized both by conditional heteroscedasticity and non-Gaussianity. Standard, publicly available, quarterly data on GDP growth from 1979 to 2019 for six countries are employed: Australia, Canada, France, Japan, the United Kingdom and the United States. In-sample analysis suggests that when homoscedasticity is assumed, support is provided for non-Gaussian error terms; the estimated degrees of freedom of the t-distribution lie between two and seven for all countries. However, allowing for both conditional heteroscedasticity and t-distributed innovations, results indicate that conditional heteroscedasticity captures the fat-tailed behaviour of the data to a large extent. Results from out-of-sample analysis show that point nowcasts are hardly affected by taking conditional heteroscedasticity and/or non-Gaussianity into account. For the density nowcasts, it is found that accounting for conditional heteroscedasticity leads to improvements for Australia, Canada, Japan, the United Kingdom and the United States; allowing for non-Gaussianity seems less important though. This result is robust to which measure is used for assessing density nowcasting performance.
Journal: Applied Economics
Pages: 6669-6686
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2075823
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2075823
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:58:p:6669-6686



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2081662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yusuke Fushiki
Author-X-Name-First: Yusuke
Author-X-Name-Last: Fushiki
Author-Name: Katsuhiro Saito
Author-X-Name-First: Katsuhiro
Author-X-Name-Last: Saito
Title: Continue or cease? A method to identify credit constraints under policy intervention and an implication for policy efficiency
Abstract: 
 In this study, we consider the problem whereby policy intervention in the financial market might hide the existence of credit constraints. We develop a theoretical model of the representative borrower utilizing credit from private banks and a governmental financial institution. Using the exogenous change in the transaction technology for borrowing from the governmental institution, we can identify the existence of credit constraints even if the policy remains in the market. Additionally, our model shows that the inefficiency of policy intervention is larger when we consider the borrower’s choice of optimal effort.
Journal: Applied Economics
Pages: 6716-6725
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2081662
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2081662
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:58:p:6716-6725



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2078781_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: João Ricardo Faria
Author-X-Name-First: João Ricardo
Author-X-Name-Last: Faria
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Do professors’ wages depend on students’ earnings?
Abstract: 
 Survey data indicate that the average salary of full professors in the U.S. and the average starting salary of new college graduates in the U.S. have both grown over each of the past eight years. The positive association between these survey data is intuitively appealing in that if greater demand for education comes as a consequence of higher annual earnings accruing to individuals with more education, then an increase in the starting salaries of new college graduates should lead to an increase in the wages of college and university faculty. This paper is the first to study whether the demand for professors is derived from the demand for higher education. To do so, we model the interactions between the academic labour market and the market for college and university graduates, and we show that, in equilibrium, academic wages are independent of students’ earnings. This main characteristic of the equilibrium conditions of our formal model is supported by empirical analysis.
Journal: Applied Economics
Pages: 6703-6715
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2078781
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2078781
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:58:p:6703-6715



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2075539_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tianyuan Luo
Author-X-Name-First: Tianyuan
Author-X-Name-Last: Luo
Author-Name: Genti Kostandini
Author-X-Name-First: Genti
Author-X-Name-Last: Kostandini
Title: The wage impacts of intensified immigration enforcement on native and immigrant workers
Abstract: 
 We examine the heterogeneous wage effects of E-Verify adoption on natives and immigrants by industry and skill level using a Difference-in-Differences model. The results suggest that immigrant workers in low-skilled occupations (e.g. manual laborer, low-skill services, and craft workers) in the manual industry experience a decrease in wages after E-Verify adoption, while immigrant workers who are high school graduates and those that have clerical and sales positions in the service and retail trade industries experience a wage increase. We find insignificant changes in the wage level of native workers of all skill levels. E-Verify did not effectively improve the wage level of native workers because the impacts seem to be absorbed by immigrant workers.
Journal: Applied Economics
Pages: 6656-6668
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2075539
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2075539
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:58:p:6656-6668



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2081663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yusui Tang
Author-X-Name-First: Yusui
Author-X-Name-Last: Tang
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: M. I. M. Wahab
Author-X-Name-First: M. I. M.
Author-X-Name-Last: Wahab
Author-Name: Yu Wei
Author-X-Name-First: Yu
Author-X-Name-Last: Wei
Title: Does the US stock market information matter for European equity market volatility: a multivariate perspective?
Abstract: 
 This research investigates whether the US stock volatility index (S&P 500 index) has the forecasting ability to predict the volatility of CAC index (France), DAX index (Germany), and FTSE index (the UK) by employing a multivariate heterogeneous autoregressive realized volatility jump (MHAR-RV-CJ) model. Our empirical results provide consolidated comparisons using univariate and multivariate models. The in-sample results show us the US volatility will improve the long-term volatility regression coefficient. Moreover, our proposed model, the MHAR-RV-CJ model, nearly surpasses all competing models at out-of-sample forecasting, indicating that considering the multivariate DCC-GARCH information between US-France, US-Germany, and US-UK stock markets and jump component structures can help to predict individual European stock market volatility. Unsurprisingly, several forecasting evaluation tests and further analysis (high/low volatility) confirm the robustness of our results.
Journal: Applied Economics
Pages: 6726-6743
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2081663
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2081663
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:58:p:6726-6743



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2074361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sergio Destefanis
Author-X-Name-First: Sergio
Author-X-Name-Last: Destefanis
Author-Name: Francesco Addesa
Author-X-Name-First: Francesco
Author-X-Name-Last: Addesa
Author-Name: Giambattista Rossi
Author-X-Name-First: Giambattista
Author-X-Name-Last: Rossi
Title: The impact of COVID-19 on home advantage: a conditional order-m analysis of football clubs’ efficiency in the top-5 European leagues
Abstract: 
 This study aims to contribute to the recent literature on the effects of COVID on football teams’ performance, focusing on the impact of ghost games on offensive and defensive technical efficiency. Using season-level data for the top 5 European leagues, a novelty for efficiency studies on football, the analysis compares the ten seasons played before the pandemic outbreak with the only season (2020–21) almost entirely played behind closed doors. A further novel contribution is the methodology – conditional order-m – applied to calculate efficiency scores. Our results show that in the post-COVID season both offensive and defensive efficiency significantly increased for away games, whereas for home games offensive efficiency shows a very slight increase, and defensive efficiency remains basically unchanged. These findings are valid for all the five leagues and provide evidence of a generalized reduction in the home advantage.
Journal: Applied Economics
Pages: 6639-6655
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2074361
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2074361
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:58:p:6639-6655

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2082370_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jinjie Zhu
Author-X-Name-First: Jinjie
Author-X-Name-Last: Zhu
Author-Name: Shulin Liu
Author-X-Name-First: Shulin
Author-X-Name-Last: Liu
Title: An economic analysis of maximally representative allocations
Abstract: 
 Within online advertising, there has been remarkable growth in display advertising. Our study focuses on the publisher’s allocation of its targeted advertising inventory – to this end, we employ the Hotelling model and use maximally representative allocation in our calculations. We then determine the supremum and infimum prices of a guaranteed contract allocated to advertisers. Rather significantly, our model provides a hybrid channel strategy for a publisher that allows the traditional method of targeted advertising and real-time bidding to coexist. We thus demonstrate the difference in each strategy’s outcome. The study reveals that the revenue of the publisher increases when it employs a hybrid channel strategy. Further, advertisers can bid for real-time bidding impressions in pursuit of high user conversion and simultaneously purchase a guaranteed contract in advance to reduce risk under conditions of sufficient funding.
Journal: Applied Economics
Pages: 6744-6754
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2082370
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2082370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:59:p:6744-6754



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chia-Chi Wang
Author-X-Name-First: Chia-Chi
Author-X-Name-Last: Wang
Title: Does a multi-product firm adopt environmental corporate social responsibility voluntarily?
Abstract: 
 This paper considers a vertically related market to analyse the effect of implementing environmental corporate social responsibility (ECSR) for a multi-product firm. A downstream multi-product firm that implements ECSR needs to buy a key component from an upstream monopolist. We present some interesting results. First, the effect of implementing ECSR on a firm’s profit is ambiguous. Adopting ECSR may increase the multi-product firm’s profit if the production causes mild environmental damage. In other words, a multi-product firm may benefit from implementing ECSR. Second, a multi-product firm implementing ECSR may alleviate the problem of double marginalization. Third, implementing ECSR may even bring about a triple-win (win-win-win) situation where the multi-product firm is able to simultaneously improve its total profit, environmental quality, and social welfare.
Journal: Applied Economics
Pages: 6797-6808
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083766
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083766
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:59:p:6797-6808



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083767_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Liwei Guo
Author-X-Name-First: Liwei
Author-X-Name-Last: Guo
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Title: Does agricultural mechanisation promote agricultural TFPG? Evidence from spatial panel data in China
Abstract: 
 Does the promotion of agricultural mechanization level have spatial driving effects on the agricultural total factor productivity growth (TFPG)? Based on spatial panel data from 2000 to 2019, we begin by measuring agricultural TFPG, then incorporating spatial econometric models as well as carrying out spatial regression to first explore the influence agricultural mechanization level has on the agricultural TFPG. Meanwhile, we also perform decomposition of the spatial regression results to further study the spatial spillover effects performed by agricultural mechanization. The study suggests that the promotion of agricultural mechanization level has exerted significant spatial spillover effects on the agricultural TFPG, especially in the eastern and northeast regions of China, demonstrating obvious radiation effects, whereas the central and western regions may not produce such intense spatial spillovers due to the pattern of agricultural development. The results could not only enhance the understanding of agricultural mechanization on the agricultural TFPG but also produce constructive implications for optimizing the spatial layout of agricultural mechanization development, promoting agricultural development according to local conditions and formulating reasonable agricultural economic development policies.
Journal: Applied Economics
Pages: 6809-6828
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083767
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083767
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:59:p:6809-6828



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083570_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rohan Best
Author-X-Name-First: Rohan
Author-X-Name-Last: Best
Author-Name: Rabindra Nepal
Author-X-Name-First: Rabindra
Author-X-Name-Last: Nepal
Title: Saving and subsidies for solar panel adoption in Nepal
Abstract: 
 Greater use of household solar-panel systems has the potential to improve energy access and affordability while reducing the risk of climate change. This article uses a survey of 6,000 households in Nepal, a developing economy, to enhance understanding of the factors driving solar-system uptake by households. A key contribution is the breadth of analysis. We find important influences for economic, social, and locational factors. In contrast, physical dwelling aspects, such as roof material, appear to be less important. Social influences explain extra variation in solar-panel uptake, when comparing social and economic influences, although some variables could be classified in multiple categories. For example, membership in a women’s saving and credit cooperative is a socioeconomic factor that is associated with greater solar-panel adoption. Socioeconomic factors may be the most important for future policy innovations, given that existing policy already focuses on location. For instance, this article finds that solar adoption has been much higher in the most supported regions for the Renewable Energy Subsidy Policy.
Journal: Applied Economics
Pages: 6768-6783
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083570
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083570
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:59:p:6768-6783



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083571_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xu Wu
Author-X-Name-First: Xu
Author-X-Name-Last: Wu
Author-Name: Ling-Ling Li
Author-X-Name-First: Ling-Ling
Author-X-Name-Last: Li
Title: Fractal characteristics analysis and fluctuation trend prediction of commercial bank funding liquidity
Abstract: 
 Funding liquidity has been considered as the lifeline of commercial banks. If there are abnormal fluctuations in funding liquidity, it may lead to bank runs, which may bring about the destruction of commercial banks and even spread to cause a financial crisis. Therefore, exploring the fluctuation characteristics and trend prediction of commercial bank funding liquidity has traditionally attracted much attention. Based on this, this paper analyzes the fluctuation characteristics of commercial bank funding liquidity by Multi-Fractal Detrended Fluctuation Analysis (MF-DFA), and innovatively uses the Moving Trend Entropy Dimension (MTED) for commercial bank funding liquidity fluctuation trend prediction. The results of the study show that the commercial bank funding liquidity is multifractal, so it has predictability; MTED can not only accurately predict the fluctuation trend of commercial bank funding liquidity, but also has robustness. Through effective monitoring of funding liquidity, commercial banks can develop their funding liquidity risk management programs and improve the effectiveness of their own funding liquidity risk control. At the same time, regulators can also achieve the goal of preventing and resolving funding liquidity risks as well as maintaining financial stability.
Journal: Applied Economics
Pages: 6784-6796
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083571
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083571
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:59:p:6784-6796



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083569_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zheming Yan
Author-X-Name-First: Zheming
Author-X-Name-Last: Yan
Author-Name: Rui Shi
Author-X-Name-First: Rui
Author-X-Name-Last: Shi
Author-Name: Kerui Du
Author-X-Name-First: Kerui
Author-X-Name-Last: Du
Author-Name: Lan Yi
Author-X-Name-First: Lan
Author-X-Name-Last: Yi
Title: The role of green production process innovation in green manufacturing: empirical evidence from OECD countries
Abstract: 
 Under the climate change background, green manufacturing is a critical path to realizing a low-carbon economy. The role of green products from manufacturing in economy-wide green transition has been discussed in the literature. In contrast, innovation in the industrial process, an important driver of climate change, has seldom been studied. This paper investigates the impact of green production process innovation on green manufacturing production using a fixed-effect SFA model. Furthermore, we discuss whether the impact of green production process innovation is conditioned on the economic development level, using a newly developed partial linear functional model. The results show that green production process innovation benefits green manufacturing, promoting sectoral carbon and energy efficiency. This paper further proposes policy implications, based on the findings that the green production process innovation’s marginal effects vary with economic development level.
Journal: Applied Economics
Pages: 6755-6767
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083569
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083569
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:59:p:6755-6767



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2084017_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ruifeng Liu
Author-X-Name-First: Ruifeng
Author-X-Name-Last: Liu
Author-Name: Jian Wang
Author-X-Name-First: Jian
Author-X-Name-Last: Wang
Author-Name: Fei Liang
Author-X-Name-First: Fei
Author-X-Name-Last: Liang
Author-Name: Yefan Nian
Author-X-Name-First: Yefan
Author-X-Name-Last: Nian
Author-Name: Hengyun Ma
Author-X-Name-First: Hengyun
Author-X-Name-Last: Ma
Title: What we can learn from the interactions of food traceable attributes? a case study of Fuji apple products in China
Abstract: 
 Using a face-to-face consumer survey in six cities across China to obtain stated-preference data from a choice experiment, this paper examines consumers’ preferences and willingness-to-pay for Fuji apple products’ food traceability, certification and region of origin claims attributes. The results show that consumers are willing to pay a positive premium for food traceable attributes. The paper finds strong complementary effects between food traceable attributes. Besides, substitution and complementary effects between attributes vary over the sample cities. In addition, there is less overlap in the value of certain food attributes in some cities. These findings provide insights into the marketing management strategies.
Journal: Applied Economics
Pages: 6829-6849
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084017
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084017
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:59:p:6829-6849

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2084024_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xianhang Qian
Author-X-Name-First: Xianhang
Author-X-Name-Last: Qian
Author-Name: Xue Yang
Author-X-Name-First: Xue
Author-X-Name-Last: Yang
Title: Supervisory independence and banks’ non-performing loans: quasi-experimental evidence from China
Abstract: 
 This paper utilizes the turnover of head of local banking supervisory branches accompanied with the merger of China’s banking and insurance regulatory authorities as a quasi-experiment and analyses the impact of supervisory independence on banks’ non-performing loans. The difference-in-difference estimates indicate that in regions with heads of local supervisory branches from other geographic branches, banks’ non-performing loan ratios will decline. The impact of supervisory independence is more pronounced in regions with lower financial marketization. It further shows that supervisory independence can reduce total loan amounts, medium-and-long-term loans, and enterprise loans, and clarifies the impacting mechanisms of supervisory independence on banks’ non-performing loans.
Journal: Applied Economics
Pages: 6938-6948
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084024
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084024
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:60:p:6938-6948



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2084018_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Juan Lin
Author-X-Name-First: Juan
Author-X-Name-Last: Lin
Author-Name: Ximing Wu
Author-X-Name-First: Ximing
Author-X-Name-Last: Wu
Author-Name: Panye Yang
Author-X-Name-First: Panye
Author-X-Name-Last: Yang
Title: Dynamic dependence and risk spillovers between RMB onshore spot and offshore NDF markets
Abstract: 
 This paper investigates the dependence structure between the renminbi (RMB) onshore spot and offshore NDF markets using a GARCH-dynamic copula model. We document that the central parity reform in August 2015 marked a structural change in the dependence structure between the onshore spot and offshore NDF markets. Since the reform, the conditional correlation and tail dependence between the two markets have significantly increased and exhibited apparent time-varying patterns. We show that the difference between the central parity and spot rates and the degree of market segmentation between CNY and NDF markets are two crucial factors driving the time-varying CNY-NDF dependence. Furthermore, we find symmetric downside and upside risk spillovers between the two markets transmitted in both directions. The magnitude of spillovers has significantly increased since the reform. Our findings are particularly relevant for policy-making and portfolio risk management.
Journal: Applied Economics
Pages: 6850-6862
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084018
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084018
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:60:p:6850-6862



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2084020_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Alison Watts
Author-X-Name-First: Alison
Author-X-Name-Last: Watts
Title: Contests with gender bias: evidence from a culinary competition
Abstract: 
 Multi-round contest competition determines many important social and economic outcomes such as employment, promotion, political office, as well as singing, debate, and culinary championships. The competitors in such a contest often belong to different groups based on race, ethnicity, and gender. We examine how favouritism in beliefs about ability affects both who wins the contest and the timing of being voted out. The results are tested using novel data from the culinary competition Chopped. We find that female contestants are more likely to be voted out early, but females who survive to the second half of the contest have a good chance to win. These results support an argument of gender bias by the judges.
Journal: Applied Economics
Pages: 6875-6886
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084020
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084020
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:60:p:6875-6886



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2084022_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yinhe Liang
Author-X-Name-First: Yinhe
Author-X-Name-Last: Liang
Author-Name: Shuang Yu
Author-X-Name-First: Shuang
Author-X-Name-Last: Yu
Title: Are non-left-behind children really not left behind? The impact of village migration on children’s health outcomes in rural China
Abstract: 
 With rapid urbanization and industrialization, a large number of rural residents have migrated to urban areas for work, increasing the proportion of migration in rural villages. Previous studies have typically examined the direct effect of parental migration, while we provide the first evidence for the spillover effects of village migration on the health outcomes of non-left-behind children. The results from an instrumental variable analysis show a sizable adverse effect of exposure to village migration on the health outcomes of non-left-behind children. We examine the role of unhealthy peers, poor parental health behaviours, poor village healthcare infrastructure, and unbalanced human capital structure at the village level.
Journal: Applied Economics
Pages: 6901-6918
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084022
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084022
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:60:p:6901-6918



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2084023_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yicheng Tang
Author-X-Name-First: Yicheng
Author-X-Name-Last: Tang
Author-Name: Hongyan Fang
Author-X-Name-First: Hongyan
Author-X-Name-Last: Fang
Title: Does bank shareholding affect corporate debt restructuring? Evidence from financially distressed firms in China
Abstract: 
 This paper investigates the impact of bank shareholding on corporate debt restructuring. Using a sample of financially distressed firms in China from 2007 to 2016, we find that distressed firms with bank shareholders are more likely to restructure their debt than firms without bank shareholders. Moreover, the alleviation of renegotiation friction in both distressed state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs) and reducing information asymmetry in non-SOEs facilitate the positive impacts of bank shareholding on debt restructuring. In addition, the impact is more evident in distressed non-SOEs characterized by higher profitability prior to restructuring. Further, distressed non-SOEs with bank shareholders are more likely to recover from distress than their peers, while the results are opposite for distressed SOEs. We argue that while bank shareholding facilitates restructuring in distressed non-SOEs, it aggravates the soft budget constraint in troubled SOEs. Our results are robust after accounting for the selection bias of bank shareholding.
Journal: Applied Economics
Pages: 6919-6937
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084023
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084023
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:60:p:6919-6937



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2084021_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Changyu Hu
Author-X-Name-First: Changyu
Author-X-Name-Last: Hu
Author-Name: Yuetong Li
Author-X-Name-First: Yuetong
Author-X-Name-Last: Li
Author-Name: Xiaojia Zheng
Author-X-Name-First: Xiaojia
Author-X-Name-Last: Zheng
Title: Data assets, information uses, and operational efficiency
Abstract: 
 This paper studies the impact of data assets on firms’ operational efficiency, aiming to show how data assets work in business operations and highlight their key value. Given the rich content, data assets can increase operational efficiency as it embeds firms with valuable information used to optimize resource deployment in production and improve customer relationship management. Using a sample of A-share listed firms in China from 2003 to 2019, we empirically show a consistent and significantly positive relationship between a text-based measure of data assets and operational efficiency. Moreover, the positive effect of data assets on operational efficiency is more pronounced in state-owned enterprises (SOEs), diversified firms with redundant internal information, and firms in a more complex external information environment (i.e. more volatile earnings of the industry or a larger dispersion of analysts’ forecasts). As further evidenced by higher turnover ratios of inventory and lower turnover ratios of accounts receivables in firms with data assets, we verify that data assets lead to efficient production management and flexible customer relationship management. Overall, these results suggest that data assets are valuable in the efficiency improvement of firms by facilitating information uses.
Journal: Applied Economics
Pages: 6887-6900
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084021
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084021
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:60:p:6887-6900



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2084019_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yiwen Shangguan
Author-X-Name-First: Yiwen
Author-X-Name-Last: Shangguan
Author-Name: Wenshuo Guo
Author-X-Name-First: Wenshuo
Author-X-Name-Last: Guo
Title: Is FDI a high-quality investment? evidence from the changes in the Chinese FDI after HSR opening
Abstract: 
 Improving the quality of foreign direct investment (FDI) is of great importance for the Chinese economy, which has transited from high-speed growth to high-quality development. Under the background of the rapid construction of high-speed rail (HSR), this paper uses panel data from 288 prefecture-level cities in China from 2007 to 2017 and implements the time-varying difference-in-differences (DID) model to investigate the effect of the HSR opening on FDI. This study also infers the quality of FDI before HSR opening and tests whether HSR opening could improve the quality of FDI. The empirical results show that in the short period after the HSR opening, the crowding out low-quality investment caused by the opening of HSR is greater than the effect of attracting high-quality investment. Therefore, FDI decreases after the opening of HSR, indicating the FDI before HSR opening is a low-quality investment. Moreover, the opening of HSR could gradually improve the quality of FDI over time, promoting FDI to transition to a neutral investment, then to a high-quality investment. Our research suggests that the Chinese government should choose FDI with adequate evaluation, introducing the high-quality FDI to generate technology spillovers and promote the industrial upgrades.
Journal: Applied Economics
Pages: 6863-6874
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084019
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084019
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:54:y:2022:i:60:p:6863-6874

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2061903_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Athina Zervoyianni
Author-X-Name-First: Athina
Author-X-Name-Last: Zervoyianni
Author-Name: Sophia Dimelis
Author-X-Name-First: Sophia
Author-X-Name-Last: Dimelis
Author-Name: Alexandra Livada
Author-X-Name-First: Alexandra
Author-X-Name-Last: Livada
Title: Economic Sentiment and the Covid-19 Crisis: Evidence from European Countries
Abstract: 
 This paper examines empirically the impact of Covid-19 pandemic on economic sentiment in Europe. We focus on the EU-27 countries plus the UK during the period September 2019 to November 2020, before the initiation of Covid-19 vaccination, using data from Eurostat’s Business and Consumers Surveys. Panel data estimates indicate that the pandemic has generated strongly declining sentiments among economic agents in Europe through the slowdown of the economy due to the imposed restrictions on movement and other controls. The risk of infection-induced mortality has played a separate role in generating pessimism directly from human psychology. The emergency social protection measures launched by governments have, on average, been effective in reducing market pessimism. However, we provide evidence suggesting that policymakers should focus more on targeted support to poor households and other disadvantaged groups of the population. Overall, our results suggest that certain structural features of economies, including poverty exposure, a large informal sector, and a high percentage of vulnerable employment as well as limited financial and informational openness, are factors that may intensify the severity of the adverse economic consequences of a pandemic.
Journal: Applied Economics
Pages: 113-130
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2061903
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061903
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:1:p:113-130



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_1927964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ni Zhuo
Author-X-Name-First: Ni
Author-X-Name-Last: Zhuo
Author-Name: Chunhui Ye
Author-X-Name-First: Chunhui
Author-X-Name-Last: Ye
Author-Name: Chen Ji
Author-X-Name-First: Chen
Author-X-Name-Last: Ji
Title: Human capital matters:intergenerational occupational mobility in rural China
Abstract: 
 Intergenerational occupational mobility often indicates inequality in society, and occupational mobility in rural China reflects the labour migration from rural to urban areas. Human capital is critical to occupational mobility; however, studies on occupational mobility in rural areas spanning over three generations, from the human capital perspective, are scant. This study analyzes data of three generations from Chinese Rural Development Surveys to examine intergenerational occupational mobility of rural Chinese households. Specifically, considering that the term ‘mobility’ refers to differences in occupation of parents and their offspring, this study examines education and skills training differences between the two as independent variables to ascertain their influence on occupational mobility, rather than simply examining parents’ education and skills training. A series of descriptive analysis and regressions confirm that education and workforce skills training are the key determinants that enable farmers to move upward in occupational status. These variables also influence the direction and distance of occupational mobility for rural households. This indicates that the government should invest more in human capital, especially by supporting increased access to both education and training.
Journal: Applied Economics
Pages: 1-19
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2021.1927964
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927964
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:1:p:1-19



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2052011_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ho Seoung Na
Author-X-Name-First: Ho Seoung
Author-X-Name-Last: Na
Title: Analysis of mutual relationships between investments made by content providers and network operators using the VAR model
Abstract: 
 Various services and content available on the Internet have changed people’s daily lives and also changed the physical structure of the Internet network. Prominent content providers with high levels of Internet traffic by multimedia content have a significant influence on the structural changes of the Internet network. This study empirically analyzes the mutual relationships between the content providers’ infrastructure investments and the network operators’ network investments, using time-series data. It concludes that for the continuous development of Internet-related industries, it is necessary for the content providers to pay network interconnection fees to the network operators with paid peering contracts.
Journal: Applied Economics
Pages: 58-71
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2052011
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2052011
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:1:p:58-71



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_1934392_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Haifa Boussada
Author-X-Name-First: Haifa
Author-X-Name-Last: Boussada
Author-Name: Jean-Luc Prigent
Author-X-Name-First: Jean-Luc
Author-X-Name-Last: Prigent
Author-Name: Ibrahima Soumare
Author-X-Name-First: Ibrahima
Author-X-Name-Last: Soumare
Title: On the sovereign debt crisis: sovereign credit default swaps and their interaction with stock market indices
Abstract: 
 This paper examines the European credit default swap spreads and their relationship to other financial assets such as stock indices. This study aims at better investigating the European sovereign debt crisis from the beginning of 2010 to the end of 2013. For this purpose, using daily data covering the period from January 2004 to December 2018, first we examine the impact of the sovereign crisis on spread sovereign credit default swaps, using both an asymmetric DCC-MGARCH model and a Copula-based Multivariate GARCH model (C-MGARCH). Then, we estimate the relations between spread sovereign credit default swaps and equity indices. We analyse in particular the lead–lag relationship between these two financial indicators by using a vector autoregressive model. We note a negative correlation between the spreads and stock market indices. There is a significant unidirectional causality from CDS spread changes to stock market indices returns. Our findings show that the CDS spreads have played a leading role in most European countries during this crisis. These results are potentially important because the current pandemic is threatening the economies of European countries, especially Greece.
Journal: Applied Economics
Pages: 20-42
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2021.1934392
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934392
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:1:p:20-42



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2055741_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Author-Name: Zhanpeng Bi
Author-X-Name-First: Zhanpeng
Author-X-Name-Last: Bi
Author-Name: May Hu
Author-X-Name-First: May
Author-X-Name-Last: Hu
Author-Name: Qingzhu Meng
Author-X-Name-First: Qingzhu
Author-X-Name-Last: Meng
Title: Shadow banking and commercial bank: evidence from China
Abstract: 
 In China, commercial banks participate in shadow banking activities through interbank or channel businesses, which should be called bank’s shadow banking activities. Based on the co-opetition game model, we first analyse the fund flow mechanism between bank’s shadow banking and traditional credit business, which confirms that the greater the proportion of bank’s shadow banking investment, the higher the bank profit. By sampling 147 commercial banks in China during 2003 to 2019, we empirically study the impact of bank’s shadow banking on the individual risk of commercial bank by OLS regression and on the systemic risk of banks through the randomized effect model from the micro-level. The results confirm that Chinese bank’s shadow banking will increase the individual operating risk of commercial bank and its rapid development will increase the probability of banking system risk. Meanwhile, we find that global financial crisis has no significant effect on the risk of individual banks or banking systems, but the regulatory overhaul of bank’s shadow banking activities can significantly inhibit the individual bank’s operational risk, especially for listed banks.
Journal: Applied Economics
Pages: 72-89
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2055741
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2055741
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:1:p:72-89



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2023090_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xinsheng Cui
Author-X-Name-First: Xinsheng
Author-X-Name-Last: Cui
Author-Name: Longfei Guo
Author-X-Name-First: Longfei
Author-X-Name-Last: Guo
Author-Name: Yuanyue Bian
Author-X-Name-First: Yuanyue
Author-X-Name-Last: Bian
Title: Improving business environments: a new approach to promote trade openness?
Abstract: 
 Improving business environments as a kind of internally oriented institutional reform has been approved to attract Foreign Direct Investment and promote foreign trade. However, its effect on trade openness has been ignored. By introducing a dummy variable of the border into the gravity equation model, this study redefines and measures the trade openness, representing the ease of goods and service import of an economy. Then we estimate the impact of business environments on trade openness with the ease of doing business score of the World Bank’s Doing Business project. The results reveal that, although some countries tend to implement trade protectionism in the time of economic crises and the trade openness suffers temporary setbacks, the overall development trend of the world economy increasingly opens up. Besides, the level of trade openness varies significantly among economies where developed countries demonstrate more openness than developing ones. More importantly, we find the positive effect of business environments on trade openness and the countries with lower development level benefited more from the improving business environments. It highlights the importance of improving business environments in promoting trade openness in the developing world.
Journal: Applied Economics
Pages: 43-57
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2021.2023090
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2023090
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:1:p:43-57



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2056571_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hao Wu
Author-X-Name-First: Hao
Author-X-Name-Last: Wu
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Yiwen Chen
Author-X-Name-First: Yiwen
Author-X-Name-Last: Chen
Author-Name: Fei Huang
Author-X-Name-First: Fei
Author-X-Name-Last: Huang
Title: Time-Frequency connectedness of policy uncertainty, geopolitical risk and Chinese commodity markets: evidence from rolling window analysis
Abstract: 
 This article investigates the time-frequency connectedness of categorical policy uncertainty, geopolitical risk and Chinese commodity markets by applying the vector autoregression method for the period from August 2004 to March 2021. Specifically, our research employs rolling window analysis of wavelet decomposition series to uncover the dynamic properties of connectedness with a time-frequency framework. The results indicate that heterogeneity exists across time scales for policy-specific uncertainty, geopolitical risk and commodities throughout the study period. In particular, the directional connectedness shows that the commodity markets are most closely related to monetary policy uncertainty, followed by exchange rate policy uncertainty, fiscal policy uncertainty and trade policy uncertainty, and finally geopolitical risk. In addition, connectedness exhibits an obvious changing trend during the crisis period, and the spillover effects of policy uncertainty and geopolitical risk increase dramatically. Finally, the long-term connectedness between policy uncertainty, geopolitical risk and commodities are stronger than that in the short-term periods. Overall, our findings provide valuable implications that policymakers and investors should pay attention to dynamic and time-frequency features of connectedness when making decisions.
Journal: Applied Economics
Pages: 90-112
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2056571
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056571
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:1:p:90-112

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2074358_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bo Cheng
Author-X-Name-First: Bo
Author-X-Name-Last: Cheng
Author-Name: Xiaochen Zhang
Author-X-Name-First: Xiaochen
Author-X-Name-Last: Zhang
Author-Name: Baoyin Qiu
Author-X-Name-First: Baoyin
Author-X-Name-Last: Qiu
Author-Name: Jingjing Zuo
Author-X-Name-First: Jingjing
Author-X-Name-Last: Zuo
Title: Does the ”Belt and Road” initiative impact a firm’s green investments?
Abstract: 
 Based on the quasi-natural experiment of the ‘Belt and Road’ initiative by the State Council in March 2015 in China, we use a difference-in-differences (DID) research design to examine the impact of the ‘Belt and Road’ initiative on firms’ green investments. Our DID results show that compared with firms in the control group, supported-firms significantly decreased their green investments after the ‘Belt and Road’ initiative. Specifically, firm-level green investments of supported-firms decreased by approximately 44% after the ‘Belt and Road’ initiative than before the ‘Belt and Road’ initiative relative to an average firm. After the use of placebo test, PSM test, and replacement of variables and samples test, the basic conclusion remains unchanged. Further analysis shows that the negative effect of the ‘Belt and Road’ initiative on green investments is more salient for key provinces, heavily polluting industries, weak industry competition, low management power, high media attention, and high analyst attention. Collectively, our findings systematically identify and examine the influence of the ‘Belt and Road’ initiative on green investments.
Journal: Applied Economics
Pages: 155-169
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2074358
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2074358
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:2:p:155-169



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2071830_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Luis Diaz-Serrano
Author-X-Name-First: Luis
Author-X-Name-Last: Diaz-Serrano
Author-Name: Frank G. Sackey
Author-X-Name-First: Frank G.
Author-X-Name-Last: Sackey
Title: Is microfinance really helping the most vulnerable? An empirical test of the effectiveness of the Ghana’s Microfinance Policy Reform
Abstract: 
 The study aims to test the effectiveness of the Ghana Microfinance Policy of 2006 set up to support women and youth through access to credit. Our results show that, after controlling for a large number of variables, female and young entrepreneurs are less likely to be rationed in the access to microcredit and that this is largely determined by the differential treatment that they receive from microfinance institutions. Our analysis using regression decomposition techniques indicates that positive discrimination in favour of women and youth exists. Surprisingly, our results show that government microfinance policy accounts for the most severe rationing behaviour towards the targeted groups by the law.
Journal: Applied Economics
Pages: 131-145
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2071830
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2071830
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:2:p:131-145



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2074357_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sylvain Bourjade
Author-X-Name-First: Sylvain
Author-X-Name-Last: Bourjade
Author-Name: Annalisa Fraccaro
Author-X-Name-First: Annalisa
Author-X-Name-Last: Fraccaro
Author-Name: Debrah Meloso
Author-X-Name-First: Debrah
Author-X-Name-Last: Meloso
Author-Name: Roman Skripnik
Author-X-Name-First: Roman
Author-X-Name-Last: Skripnik
Author-Name: David Stolin
Author-X-Name-First: David
Author-X-Name-Last: Stolin
Title: Non-proportional thinking in IPOs
Abstract: 
 The fact that initial-to-final IPO price revision ratios are strong predictors of IPO underpricing is well known to researchers. Our study documents that the dollar amount of the price revision matters above and beyond the revision ratio, and dramatically so. Immediately following the IPO, market participants appear to see a positive signal in greater dollar amount revisions, even if holding price revision ratios equal. This extends Shue and Townsend (Journal of Finance, 2021) finding of market participants’ ‘non-proportional thinking’ to the IPO setting. It also implies that the dollar amount of price revision deserves attention from future IPO researchers, particularly when studying the determinants of IPO underpricing.
Journal: Applied Economics
Pages: 146-154
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2074357
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2074357
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:2:p:146-154



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2083567_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jun Wang
Author-X-Name-First: Jun
Author-X-Name-Last: Wang
Author-Name: Chongfeng Wu
Author-X-Name-First: Chongfeng
Author-X-Name-Last: Wu
Title: Are analysts effective speaking tubes? Evidence from site visits
Abstract: 
 This study examines the association between analysts’ site visits and stock price crash risk using a dataset of Chinese firms listed on the Shenzhen Stock Exchange (SZSE) from 2012 to 2019. We find that analysts’ site visit frequency is positively associated with future stock price crash risk, and the positive association is primarily driven by the firms that analysts keep silent on. Furthermore, we confirm that analysts’ silence is associated with negative news about firms’ fundamentals. We also show that the effect of analysts’ silence on crash risk is more pronounced when analysts face conflicts of interest, when firms have poorer information transparency, and when firms have fewer alternative information channels. Overall, our findings shed light on the dark side of analysts’ site visits.
Journal: Applied Economics
Pages: 170-187
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2083567
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083567
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:2:p:170-187



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2084026_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shaohui Gao
Author-X-Name-First: Shaohui
Author-X-Name-Last: Gao
Author-Name: Yiming He
Author-X-Name-First: Yiming
Author-X-Name-Last: He
Title: The effect of land titling policy on farm size: evidence from China
Abstract: 
 This study utilizes regression discontinuity design to examine the impact of the land titling program on farm size in China between 2009 and 2016. Results indicate that the land titling policy effect upsizes farm by around 50% and increases the transaction of management rights in farmland by around 4% points in China for 2015 national survey. Using data from the 20th century, it shows private ownership historically had lowered farm size. Today, given ownership is stable, farmland management rights provide incentive structure for farmers to participate into farmland lease market and expand their farm size.
Journal: Applied Economics
Pages: 188-200
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2084026
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084026
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:2:p:188-200



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2085870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xudong Tang
Author-X-Name-First: Xudong
Author-X-Name-Last: Tang
Author-Name: Haixia Chang
Author-X-Name-First: Haixia
Author-X-Name-Last: Chang
Author-Name: Wanli Li
Author-X-Name-First: Wanli
Author-X-Name-Last: Li
Title: Cross-ownership and tunnelling: evidence from China
Abstract: 
 The phenomenon that firms form association through the same shareholders widely exists in the global capital market. Using the data of China’s listed firms from 2008 to 2018, we examine whether cross-ownership can restrain the tunnelling behaviour of controlling shareholder. We find that cross-ownership can significantly reduce the tunnelling behaviour of controlling shareholders. It survives a series of endogeneity tests and robustness tests. Further analysis shows that the information advantage and governance experience are the two potential mechanisms through which cross-ownership affects tunnelling. Meanwhile, cross-ownership plays the positive role in restraining tunnelling mainly by increasing shareholding ratio and appointing directors. Moreover, this effect is more pronounced in firms with lower equity concentration, less analyst coverage and worse reputation of auditors. This paper not only highlights the critical role played by cross-ownership in shaping micro-economic behaviours by providing novel evidence from emerging markets, but also has some crucial implications for capital market supervision and industry antitrust policy-making.
Journal: Applied Economics
Pages: 223-236
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2085870
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2085870
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:2:p:223-236



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2085869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: OlaOluwa Simon Yaya
Author-X-Name-First: OlaOluwa Simon
Author-X-Name-Last: Yaya
Author-Name: Kingsley Opoku Appiah
Author-X-Name-First: Kingsley Opoku
Author-X-Name-Last: Appiah
Title: Tail risk dependence, co-movement and predictability between green bond and green stocks
Abstract: 
 This paper examines the coherence of extreme returns between green bonds and a unique set of green stocks. We use the novel quantile cross-spectral coherence methodology of quantile spectral coherency model, cross-quantilogram correlation approach, windowed time-lagged cross-correlation, and windowed scalogram difference models as estimation techniques. The study period spans from 28 November 2008 to 23 September 2020. Our measure of green stocks comprises the constituents of the MSCI Global Environment Price Index: Alternative Energy, Green Building, Pollution Prevention or Clean Technology while our green bond market is proxied by S&P Green Bond Index. We find the dependency between Green Bonds and green stocks to be weak, and this is high during market downturn periods in the short- to medium-term dynamics. This suggests that Green Bonds do act as a hedge, diversifier, or safe-haven instrument for environment portfolio in the short-term, medium-term and long-term dynamics during bearish market conditions. We conclude that green bonds and green stocks are two distinct asset classes with a distinct risk-return profile despite their common climate-friendly nature.
Journal: Applied Economics
Pages: 201-222
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2085869
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2085869
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:2:p:201-222

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2087858_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Suk-Joon Byun
Author-X-Name-First: Suk-Joon
Author-X-Name-Last: Byun
Author-Name: Byounghyun Jeon
Author-X-Name-First: Byounghyun
Author-X-Name-Last: Jeon
Author-Name: Donghoon Kim
Author-X-Name-First: Donghoon
Author-X-Name-Last: Kim
Title: Investor sentiment and the MAX effect: evidence from Korea
Abstract: 
 Stocks with extreme positive returns underperform the market since they are overpriced due to investors’ preference towards lottery-like stocks, stocks with a low probability of an extremely high payoff. Using data from the South Korean stock market, we show that the underperformance of such stocks is pronounced following periods of low investor sentiment. This suggests that low investor sentiment coincides with economic downturn when stocks with extreme positive returns experience increased salience and attention. We provide supporting evidence that stocks with extreme positive returns experience a substantial increase in trading volume and buying pressure from individual investors when investor sentiment is low.
Journal: Applied Economics
Pages: 319-331
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2087858
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2087858
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:3:p:319-331



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2086683_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Isaac Koomson
Author-X-Name-First: Isaac
Author-X-Name-Last: Koomson
Author-Name: Clifford Afoakwah
Author-X-Name-First: Clifford
Author-X-Name-Last: Afoakwah
Title: Can financial inclusion improve children’s learning outcomes and late school enrolment in a developing country?
Abstract: 
 This study uses comprehensive household data from Ghana to examine the link between financial inclusion and children’s learning outcomes and late school enrolment. After resolving endogeneity, we find that a standard deviation increase in financial inclusion is associated with 0.7882 to 0.9504 standard deviations increase in children’s learning outcomes. It also reduces late school enrolment by 0.9493 standard deviation. Financial inclusion enhances learning and schooling outcomes more for girls and urban children. These findings are robust to different indicators of learning outcomes and alternative approaches to addressing endogeneity. Parents’ ability to spend on extra classes and on books and other school-related supplies serve as possible channels through which financial inclusion affects children’s educational outcomes.
Journal: Applied Economics
Pages: 237-254
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086683
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086683
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:3:p:237-254



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2086963_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jeremy Philip Thornton
Author-X-Name-First: Jeremy Philip
Author-X-Name-Last: Thornton
Title: Fiscal shocks and non-profit employment
Abstract: 
 This paper uses novel data from the Quarterly Census of Employment and Wages (QCEW) to identify the impact of countercyclical fiscal policy on non-profit wages, employment, and entry in the non-profit sector. The paper extends an existing empirical literature that uses the ‘Great Recession’ (2007–2009) as a shock to identify the responsiveness of non-profit labour markets to aggressive fiscal policy. The paper adopts an identification strategy which exploits variation in the Federal Medical Assistance Percentage (FMAP) reimbursement rates across states in the context of the American Recovery and Reinvestment Act (ARRA) of 2009. An instrument is applied in the place of ARRA expenditures to avoid estimation bias. I find that non-profit employment and wages are less responsive to fiscal stimulus, relative to previous point estimates for all United States firms. Point estimates indicate estimated cost of $104,000 per non-profit job saved. However, there is wide variation across non-profit sub-sectors.
Journal: Applied Economics
Pages: 293-304
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086963
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086963
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:3:p:293-304



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2086685_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sonia Baños-Caballero
Author-X-Name-First: Sonia
Author-X-Name-Last: Baños-Caballero
Author-Name: Pedro J. García-Teruel
Author-X-Name-First: Pedro J.
Author-X-Name-Last: García-Teruel
Title: Investment in trade credit in small business start-ups: evidence from Spain during a financial crisis
Abstract: 
 This study analyses start-up firms’ investment in trade credit during the period 2011–2014. We find that new or recently created firms had greater investments in trade credit than established firms. Moreover, the results indicate that start-up firms’ investment in trade credit did not depend on their bargaining power or access to external finance. These findings suggest that the reason start-ups invested more in accounts receivable than established firms could be due to late payments or their granting credit to low-quality customers who cannot obtain credit from established firms.
Journal: Applied Economics
Pages: 273-282
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086685
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086685
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:3:p:273-282



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2086684_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yunsun Kim
Author-X-Name-First: Yunsun
Author-X-Name-Last: Kim
Author-Name: Sun-Young Hwang
Author-X-Name-First: Sun-Young
Author-X-Name-Last: Hwang
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Sahm Kim
Author-X-Name-First: Sahm
Author-X-Name-Last: Kim
Title: Linear time-varying regression with copula–DCC–asymmetric–GARCH models for volatility: the co-movement between industrial electricity demand and financial factors
Abstract: 
 This paper examines the dependence structure of industrial electricity demand and financial indicators (the Korea Composite Stock Price Index [KOSPI], Korean Securities Dealers Automated Quotations [KOSDAQ], exchange rate, government bonds and exports) using the copula dynamic conditional correlation with symmetric and asymmetric generalized autoregressive conditional heteroscedasticity (GARCH) models to forecast volatility. We investigated symmetric and asymmetric GARCH types, such as the standard, exponential, Glosten–Jagannathan–Runkle and asymmetric power models to fit the marginal distribution. The two types of elliptical copula, Gaussian and Student’s t-distributions, were also considered to investigate the tail dependence between financial and electricity time series. We analysed the monthly log returns for January 2002 to April 2020. The empirical results reveal that the best-fit models for the Akaike information criteria are the asymmetric GARCH models, specifically the exponential-GARCH (E-GARCH). Moreover, the asymmetric GARCH model is superior to the symmetric GARCH in terms of forecast volatility. Extreme tail dependence exists for the KOSDAQ and exports indicators with the electricity demand. The KOSPI, Korea’s primary stock market, is the best-fit financial variable and presents the highest forecasting accuracy.
Journal: Applied Economics
Pages: 255-272
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086684
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086684
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:3:p:255-272



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2086964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Yifei Cai
Author-X-Name-First: Yifei
Author-X-Name-Last: Cai
Author-Name: Michael Odei Erdiaw-Kwasie
Author-X-Name-First: Michael Odei
Author-X-Name-Last: Erdiaw-Kwasie
Author-Name: Lei Pan
Author-X-Name-First: Lei
Author-X-Name-Last: Pan
Title: Financial development and tourism: a century of evidence from Germany
Abstract: 
 This article presents findings from the first study to examine the direct effects of financial development on tourism. Using a unique historical dataset for Germany covering 1870 to 2016, we apply an autoregressive distributional lag (ARDL) model with structural breaks. To identify the lead–lag relationship between financial development and tourism, we adopt the wavelet coherence method and the most recently developed Shi, Hurn, and Phillips (2020) time-varying causality test. The ARDL results suggest that, on average, financial development is associated with an increase in tourist arrivals. The wavelet coherence results unveil a significant positive correlation between financial development and tourism in both short- and medium-terms, and financial development leads to tourism growth in Germany. Moreover, the causality results indicate that the positive effect of financial development on tourism is most evident from 2009 onward. Our study provides important implications for policymakers.
Journal: Applied Economics
Pages: 305-318
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086964
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086964
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:3:p:305-318



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2086686_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Title: US policy responses to the COVID-19 pandemic and sectoral stock indices: A fractional integration approach
Abstract: 
 This paper uses fractional integration to assess the impact of US policy responses to the COVID-19 pandemic on 10 US sectoral stock indices from 1 January 2020 to 11 June 2021. The results provide evidence of mean reversion in most cases and suggest that the Effective Federal Funds Rate and monetary and fiscal announcements are the most effective policy tools.
Journal: Applied Economics
Pages: 283-292
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086686
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086686
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:3:p:283-292

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096861_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mounir Dahmani
Author-X-Name-First: Mounir
Author-X-Name-Last: Dahmani
Author-Name: Mohamed Mabrouki
Author-X-Name-First: Mohamed
Author-X-Name-Last: Mabrouki
Author-Name: Adel Ben Youssef
Author-X-Name-First: Adel
Author-X-Name-Last: Ben Youssef
Title: The ICT, financial development, energy consumption and economic growth nexus in MENA countries: dynamic panel CS-ARDL evidence
Abstract: 
 This paper analyses the nexus between renewable and non-renewable energy consumption, financial development, Information and Communication Technology (ICT) diffusion and economic growth, in MENA countries, over the period 1980–2018. We use the novel Cross-Section augmented Autoregressive Distributed Lag (CS-ARDL) estimation technique which accounts for cross-sectional dependence and cross-country heterogeneity issues. We find a positive impact of renewable and non-renewable energy on economic growth, but a negative effect of financial development on economic growth. We also find a positive and statistically significant influence of ICT on Gross Domestic Product (GDP). Renewable energy and ICT diffusion can be considered important determinants of improved economic activity, job creation and better environmental quality. Pairwise Dumitrescu-Hurlin panel causality tests were used to examine the causal relations among the variables. The findings of this study have considerable policy implications for the selected countries.
Journal: Applied Economics
Pages: 1114-1128
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096861
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096861
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:10:p:1114-1128



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095348_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kanat Abdulla
Author-X-Name-First: Kanat
Author-X-Name-Last: Abdulla
Title: New evidence on the role of human capital in economic development
Abstract: 
 This study provides new evidence on the role of human capital in economic development by investigating the earnings and occupational attainment of immigrants in Venezuela. The results show that immigrants are representative of the source country’s population and are more likely to use their skills in the labour market of the host country. This allows us to measure the human capital endowments of the source countries more precisely. Using the standard development accounting framework to explain the variation in output, the study finds that physical capital and human capital account for 73–79% of income differences across countries.
Journal: Applied Economics
Pages: 1062-1073
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095348
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095348
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:10:p:1062-1073



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096860_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Weidong Xu
Author-X-Name-First: Weidong
Author-X-Name-Last: Xu
Author-Name: Yijie Chen
Author-X-Name-First: Yijie
Author-X-Name-Last: Chen
Author-Name: Xin Gao
Author-X-Name-First: Xin
Author-X-Name-Last: Gao
Author-Name: Yi Wang
Author-X-Name-First: Yi
Author-X-Name-Last: Wang
Title: Business strategy and stock price crash risk: international evidence
Abstract: 
 Employing a large international sample spanning from 1985 to 2017 (i.e. 65,774 firm-year observations), this paper examines the relationship between business strategy and stock price crash risk. Empirical results suggest that prospective business strategy is significantly and positively related to stock price crash risk, in line with the ‘bad news hoarding hypothesis’. Further research shows that in companies with higher information asymmetry or more overconfident CEOs, prospective business strategy has a larger positive impact on stock price crash risk. In addition, the above positive effects are more significant in countries with higher individualism, lower power distance, and weaker uncertainty avoidance. Our results remain after a battery of robustness checks.
Journal: Applied Economics
Pages: 1098-1113
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096860
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096860
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:10:p:1098-1113



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096862_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xue Qu
Author-X-Name-First: Xue
Author-X-Name-Last: Qu
Author-Name: Daizo Kojima
Author-X-Name-First: Daizo
Author-X-Name-Last: Kojima
Author-Name: Laping Wu
Author-X-Name-First: Laping
Author-X-Name-Last: Wu
Author-Name: Mitsuyoshi Ando
Author-X-Name-First: Mitsuyoshi
Author-X-Name-Last: Ando
Title: Rice harvest losses caused by agency slack in China: a mediation analysis
Abstract: 
 This study built mediation analysis models to test the hypothesis that a moral hazard-measured as whether harvest operators’ work attitudes are serious-mediates the effects of mechanical harvest outsourcing on rice harvest losses based on a 1106-household survey in China. The major findings are as follows. First, the average rice harvest loss rate in 2016 in China was approximately 3.65%, equalling eight million tons of rice or one million hectares of farmland. Second, after addressing the potential endogeneity, we preliminarily found the mediation effect using the three-step method. The adjusted product of coefficients method from the Sobel test, distribution of the product test, and Markov Chain Monte Carlo test all indicated the significance of the mediation effect arising from work attitudes. Third, we observed the mediation effect through moral hazard for large-scale farmers, but not when farmers used combine harvesters. These results supported the presence of a moral hazard in mechanical harvest outsourcing and showed that combine harvesting could facilitate harvest loss reduction. Policymakers should consider regulating the principal – agent relationship in harvest outsourcing and encourage land transfers to form large-scale farms to promote combine harvesting. These are critical in achieving the sustainable development goal of halving food loss and waste worldwide.
Journal: Applied Economics
Pages: 1129-1141
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096862
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096862
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:10:p:1129-1141



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096864_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiaotian Sun
Author-X-Name-First: Xiaotian
Author-X-Name-Last: Sun
Author-Name: Wei Fang
Author-X-Name-First: Wei
Author-X-Name-Last: Fang
Author-Name: Xiangyun Gao
Author-X-Name-First: Xiangyun
Author-X-Name-Last: Gao
Author-Name: Sufang An
Author-X-Name-First: Sufang
Author-X-Name-Last: An
Author-Name: Tao Wu
Author-X-Name-First: Tao
Author-X-Name-Last: Wu
Author-Name: Shuai Ren
Author-X-Name-First: Shuai
Author-X-Name-Last: Ren
Title: Nonlinear dynamical analysis of metal futures price fluctuations: a recurrence quantification analysis approach
Abstract: 
 Metal futures markets are complex systems which generally show nonstationary and complex behaviours. However, the characteristics behind these complex processes can be uncovered by exploring their prices fluctuations. This paper identified the deterministic states and measured the complexity of these six metal futures prices based on recurrence plots. The results show that the prices fluctuations characteristics of the five metals, except for Copper, were significantly different around April 2008. The average time for prices to maintain similar fluctuations for each metal is roughly within 15 days. We further used entropy indicator to quantify the complexity of metal prices systems and the sliding window method to identify time-varying features of complexity. After 2013, all these metal futures systems show higher complexity behaviours than before. Moreover, when the entropy indicator is at a high value, these metal prices are likely to change significantly.
Journal: Applied Economics
Pages: 1142-1155
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096864
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096864
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:10:p:1142-1155



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096205_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kuangchung Hsu
Author-X-Name-First: Kuangchung
Author-X-Name-Last: Hsu
Author-Name: Zhen Zhu
Author-X-Name-First: Zhen
Author-X-Name-Last: Zhu
Title: Tropical storms and the U.S. natural gas demand: how have hurricanes impacted natural gas consumption?
Abstract: 
 Studies of the impact of tropical storms on various economic activities including energy production are on the rise given higher frequencies of tropical storms and the increasingly large and negative impact in more recent years. However, we found no academic study of tropical storms on natural gas consumption. This paper provides such a study. In carrying out the empirical investigation, we created a dataset that includes the detailed path of the storms and the cities and states impacted. We estimated the storms’ impact on temperature and also the temperature’s impact on consumption to gauge the specific impact of tropical storms by state and by end use. We found significant storm impact on natural gas consumption, especially consumption of gas to produce power. However, the impact of a typical storm on gas consumption was relatively small on a monthly basis even though it could have a large impact on storm days. This study provides an important empirical result to better understand natural gas price dynamics in the presence of a tropical storm.
Journal: Applied Economics
Pages: 1074-1097
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096205
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096205
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:10:p:1074-1097



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095347_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Minghui Yang
Author-X-Name-First: Minghui
Author-X-Name-Last: Yang
Author-Name: Shaoming Chen
Author-X-Name-First: Shaoming
Author-X-Name-Last: Chen
Author-Name: Jiawen Wang
Author-X-Name-First: Jiawen
Author-X-Name-Last: Wang
Author-Name: Yan Wang
Author-X-Name-First: Yan
Author-X-Name-Last: Wang
Title: Corporate social responsibility and stock price crash risk: does analyst coverage matter?
Abstract: 
 The debate about whether corporate social responsibility (CSR) and analyst coverage facilitate financial transparency is still open among academics and practitioners to date. Drawing from the information asymmetry view, this paper aims to investigate the impact of CSR on stock price crash risk, and to examine the moderating effect of analyst coverage on the ‘CSR – crash risk’ nexus. Using a sample of 8037 firm-year observations from Chinese-listed firms between 2010 and 2018, we find that CSR is negatively associated with crash risk. Analyst coverage cannot catalyse the positive role of CSR in reducing financial opacity, and thereby weakens the negative association between CSR and stock price crash risk. This implies that analysts fail to sufficiently disseminate firm-specific information, which in turn aggravates the information gap between insiders and outside investors. Our results remain robust after considering potential endogeneity and alternative CSR measures. The current study advances the understanding of ‘CSR – crash risk’ relationship with the moderating effect of analyst coverage. We also provide important references for investors and policymakers to better understand abnormal stock price fluctuations.
Journal: Applied Economics
Pages: 1045-1061
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095347
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095347
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:10:p:1045-1061

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096868_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lu Sui
Author-X-Name-First: Lu
Author-X-Name-Last: Sui
Author-Name: Andre V. Mollick
Author-X-Name-First: Andre V.
Author-X-Name-Last: Mollick
Author-Name: Sibin Wu
Author-X-Name-First: Sibin
Author-X-Name-Last: Wu
Title: Threshold effects of financial development on foreign listing: the roles of venture capital in developed and emerging countries
Abstract: 
 This paper examines financing abroad from the perspective of international financial development. We find that foreign listing activities are significantly associated with financial development indices, such as stock trading, domestic credit, soundness of banks, venture capital availability and financing by local equity markets. The spillover effect is more pronounced in emerging countries. A threshold model with a macro dynamic panel of 37 countries from 2006 to 2020 suggests that foreign listings and financial development (stock trading and venture capital availability) follow an inverted U-shaped pattern, while foreign listings and domestic credit follow a diminishing pattern. The policy and managerial implications indicate that countries face varying demands for foreign listings at different stages of financial development. When making decisions on seeking foreign capital policymakers should follow closely the changes in domestic financial development and institutions.
Journal: Applied Economics
Pages: 1201-1216
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096868
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096868
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1201-1216



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096866_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tiantian Dai
Author-X-Name-First: Tiantian
Author-X-Name-Last: Dai
Author-Name: Shenyi Jiang
Author-X-Name-First: Shenyi
Author-X-Name-Last: Jiang
Author-Name: Tao Jin
Author-X-Name-First: Tao
Author-X-Name-Last: Jin
Author-Name: Buyuan Yang
Author-X-Name-First: Buyuan
Author-X-Name-Last: Yang
Title: Language and segregation: evidence from housing markets in the United States
Abstract: 
 It has been suggested that residential segregation has negative social and economic impacts. However, psychological and cultural benefits of such clustering have been established by research. We undertake a comprehensive analysis by estimating residential choices of minorities and identifying their willingness to pay for housing attributes and community characteristics. Recognizing that the language spoken at home adds to daily convenience, a sense of belonging, and a feeling of closeness, we widen the scope of the study to include four minority groups, defined by the languages spoken at home. We find that preferences for integrating into white, English-speaking societies are quite heterogeneous. The willingness to pay to live in a community with more own language speakers is inversely associated with the willingness to pay to live in a community with more English-speaking whites. Furthermore, any two minority groups share the same reciprocal attitudes towards each other. To assimilate more into the mainstream, a minority group might choose to reside in a community with fewer people who speak their language, but they would not necessarily be willing to lower the percentage of other minority groups.
Journal: Applied Economics
Pages: 1157-1183
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096866
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096866
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1157-1183



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kuang-Liang Chang
Author-X-Name-First: Kuang-Liang
Author-X-Name-Last: Chang
Title: The tail dependence structure between return and trading volume: an investigation on the Bitcoin market
Abstract: 
 This research assesses the diversification patterns for tail dependence between Bitcoin return and trading volume by utilizing a dynamic mixture copula approach with spillover effect and asymmetric volatility effect. There are four main empirical findings. First, the spillover effect between return and trading volume exists. Second, the leverage effect is statistically significant for return and trading volume. Third, the linkages between return and trading volume are diversified. Both positive and negative tail dependence structures are observed, and the frequency of a positive tail dependence occurring is higher. Furthermore, the asymmetric tail dependence structure exists in positive and negative dependence situations. In the positive dependence structure, a co-movement in the increasing direction is stronger than a co-movement in the decreasing direction. In the negative dependence structure, a situation of a large return with low volume occurs more often than a situation of a small return with high volume. Fourth, the volatility of trading volume positively predicts the magnitude of positive dependence.
Journal: Applied Economics
Pages: 1234-1246
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096870
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096870
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1234-1246



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Minjie Pan
Author-X-Name-First: Minjie
Author-X-Name-Last: Pan
Author-Name: Weiyong Zou
Author-X-Name-First: Weiyong
Author-X-Name-Last: Zou
Author-Name: Kangjuan Lv
Author-X-Name-First: Kangjuan
Author-X-Name-Last: Lv
Author-Name: Xinlei Qian
Author-X-Name-First: Xinlei
Author-X-Name-Last: Qian
Title: Can environmental protection interview policy reduce air pollution? -A spatial difference-in-differences approach
Abstract: 
 The low efficiency of environmental policy implementation is an important issue in China’s environmental governance. The Environmental Protection Interview (EPI) policy is an administrative means for the central environmental protection department to urge local governments to earnestly fulfill their environmental protection responsibilities. This paper takes China’s EPI policy as a quasi-natural experiment. We use panel data of 261 prefecture-level cities in China from 2009 to 2018 as research sample and use spatial difference-in-differences (SDID) model to investigate the effect and mechanism of EPI policy on air pollution. The results show that EPI policy can effectively improve air quality, EPI policy has obvious spatial spillover effects. Namely, the EPI policy can not only reduce the local air pollution, but also reduce the air pollution in neighbouring cities. The EPI policy reduces the air pollution in the neighbouring cities within a spatial attenuation boundary of 400 km.The results of mechanism test show that the EPI policy can improve air quality by promoting industrial structure upgrading and technical advancement. Moreover, the pollution reduction effect of EPI is more significant in resource-based cities. The research results of this paper provide important reference for China and other developing countries to improve air quality.
Journal: Applied Economics
Pages: 1217-1233
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096869
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096869
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1217-1233



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096867_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yosuke Tomita
Author-X-Name-First: Yosuke
Author-X-Name-Last: Tomita
Title: Effects of the rule of law and central bank independence on economic inequality and surplus value
Abstract: 
 In this study, panel data, which were obtained from 36 countries, are utilized to empirically explore the factors that affect economic inequality before redistribution through taxes and social security. Our estimations reveal that legal origin influences the resolution of the paradox in which economic inequality before redistribution is high, although redistribution is low. Simultaneously, the Gini coefficient before redistribution can be lowered by strengthening the rule of law in countries with English legal origin, which is not the case in countries with other legal origins. In countries with French legal origins, strengthening the rule of law will increase the redistribution function. Furthermore, the rule of law, as well as central bank independence, can reduce economic inequality. The rule of law exhibits a negative relationship with the rate of surplus value, and the rate of surplus value exhibits a negative association with central bank independence. Simultaneously, the rule of law and central bank independence synergistically reduce economic inequalities. Thus, a weak rule of law, coupled with the absence of central bank independence, will promote monetary easing policies, which favours politicians. Moreover, inappropriate monetary easing policies would increase the control of companies over workers and promote exploitation.
Journal: Applied Economics
Pages: 1184-1200
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096867
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096867
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1184-1200



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rana Mostaghel
Author-X-Name-First: Rana
Author-X-Name-Last: Mostaghel
Author-Name: Pejvak Oghazi
Author-X-Name-First: Pejvak
Author-X-Name-Last: Oghazi
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Title: Rugged individualism, economic growth, and inter-county variation in entrepreneurial activity
Abstract: 
 Does intra-country variation in individualism explain variations in intra-country entrepreneurial activity? Rugged individualism, a combination of individualism and anti-statism, is proxied by the total years of frontier experience in a US county between 1790 and 1890. We exploit this historic variation in tandem with present-day GDP growth in a county to test how the historic frontier experience interacts with changes in economic growth to explain the entrepreneurial activity. With small effect sizes, the findings demonstrate the greater (limited) value of rugged individualism in low (high) GDP growth conditions in driving entrepreneurial activity. Robust to a variety of specifications and a placebo test, the mechanism seems to operate through lower collective efficacy in counties with higher total frontier experience. The findings carry implications for within-country cultural variations and entrepreneurial activity.
Journal: Applied Economics
Pages: 1247-1272
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096871
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096871
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1247-1272



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2096872_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Judit Lilla Keresztúri
Author-X-Name-First: Judit Lilla
Author-X-Name-Last: Keresztúri
Author-Name: Edina Berlinger
Author-X-Name-First: Edina
Author-X-Name-Last: Berlinger
Author-Name: Ágnes Lublóy
Author-X-Name-First: Ágnes
Author-X-Name-Last: Lublóy
Title: Blowing the whistle on corporate fraud: the role of regulators and journalists in the financial vs non-financial sectors
Abstract: 
 We investigate the role of the regulatory environment and the press freedom in detecting corporate fraud. We study 1,242 internal frauds from 79 countries during the period of 2011–2019. The importance of regulation is assessed by splitting the sample into the highly regulated and monitored financial sector and the non-financial sector subject to less strict internal standards and industry-specific regulation. To examine the importance of journalists in fraud detection, we use the Word Press Freedom index and postulate that in countries with free media more internal frauds are detected. We find empirical evidence on a global sample that in the financial sector designated authorities (professional bank supervisors) play an important role in fraud detection. For the non-financial sector, we show that the media is crucial in detecting corporate fraud: the more freely journalists can write, the more events are detected.
Fraud detection mechanisms differ in the financial and the non-financial sectors.In the non-financial sector, journalists are crucial in detecting corporate fraud.In the non-financial sector, the higher the press freedom, the more events are detected.In the financial sector, press freedom is less relevant in detecting fraud.In the financial sector, designated authorities play an important role in fraud detection.
Journal: Applied Economics
Pages: 1273-1284
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096872
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096872
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1273-1284

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2089622_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mengyi Cao
Author-X-Name-First: Mengyi
Author-X-Name-Last: Cao
Author-Name: Qing Xia
Author-X-Name-First: Qing
Author-X-Name-Last: Xia
Title: Credit constraints and college attendance
Abstract: 
 This paper shows that housing wealth alleviates credit constraints for potential college attendees by enabling homeowners to extract equity from their property and invest it in education. Using a comprehensive U.S. individual-level survey dataset, we find that one standard deviation increases of housing prices translate into approximately 72,000 more students enrolled in college each year. Our results stay significant when we use proxies for aggregate housing demand shocks and for the topological elasticity of housing supply to generate variation in home equity that should be exogenous to the decision of going to college.
Journal: Applied Economics
Pages: 432-446
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089622
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089622
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:432-446



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2089344_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Valeriy Zakamulin
Author-X-Name-First: Valeriy
Author-X-Name-Last: Zakamulin
Title: Revisiting the duration dependence in the US stock market cycles
Abstract: 
 There is a big controversy among both investment professionals and academics regarding how the termination probability of a market state depends on its age. Using more than two centuries of data on the broad US stock market index, we revisit the duration dependence in bull and bear markets. Our results suggest that the duration dependence for both bull and bear markets is a nonlinear function of the state age. It appears that the duration dependence in bear markets is strictly positive. For 93% of the bull markets, the duration dependence is also positive. Only about 7% of the bull markets, those with the longest durations, do not exhibit positive duration dependence. We also compare a few selected theoretical distributions on their ability to describe the duration dependence in bull and bear markets. Our results advocate that the gamma distribution most often provides the best fit for both the survivor and hazard functions of bull and bear markets. However, our results reveal that none of the selected distributions accurately describes the right tail of the hazard functions.
Journal: Applied Economics
Pages: 357-368
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089344
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089344
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:357-368



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2089347_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gian Paulo Soave
Author-X-Name-First: Gian Paulo
Author-X-Name-Last: Soave
Title: A panel threshold VAR with stochastic volatility-in-mean model: an application to the effects of financial and uncertainty shocks in emerging economies
Abstract: 
 This article proposes a panel threshold VAR with stochastic volatility-in-mean model. The volatility process is given by the average volatility of the structural shocks affecting some selected variables and is interpreted as a measure of macroeconomic uncertainty. The posterior is approximated using an adaptive Metropolis-Within-Gibbs algorithm. We apply the method by analysing the effects of uncertainty and financial shocks in good times and financial distress in emerging economies. In our sample, we find that, under normal financial conditions, financial shocks play a slightly more pervasive role than uncertainty shocks. However, under financial stress periods, uncertainty shocks become more important than financial shocks.
Journal: Applied Economics
Pages: 397-431
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089347
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089347
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:397-431



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2089623_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jianda Wang
Author-X-Name-First: Jianda
Author-X-Name-Last: Wang
Author-Name: Jun Zhao
Author-X-Name-First: Jun
Author-X-Name-Last: Zhao
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Title: How does the internet economy affect CO2 emissions? Evidence from China
Abstract: 
 To achieve China’s Nationally Determined Contributions (NDCs), the development of the Internet economy has become an important choice for emission-reduction strategies, but the relevant emission-reduction mechanisms are still unclear. Accordingly, by constructing a system-generalized method of moments (system-GMM) approach following the STIRPAT framework, we explore the effect of the Internet economy on carbon dioxide (CO2) emissions through the mediating effect of traffic demand and the moderating effect of technological innovation using panel data of 30 provinces in China from 2006 to 2017. The results indicate that: (1) the Internet economy mitigates CO2 emissions in China; for example, a 1% increase in the Internet economy indexes causes a 0.135% decrease in CO2 emissions; (2) the development of the Internet economy has an indirect effect on CO2 emissions by decreasing traffic demand; (3) technological innovation is a favorable moderator that expands the direct and indirect emission-reduction effects of the Internet economy; and (4) the mitigating effect of the Internet economy on CO2 emissions is significant at the lower quantiles (i.e. 10th, 25th, and 50th), which suggests the Internet economy is a superior predictor of CO2 emissions.
Journal: Applied Economics
Pages: 447-466
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089623
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089623
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:447-466



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2087859_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tanvir Pavel
Author-X-Name-First: Tanvir
Author-X-Name-Last: Pavel
Author-Name: Syed Hasan
Author-X-Name-First: Syed
Author-X-Name-Last: Hasan
Author-Name: Nafisa Halim
Author-X-Name-First: Nafisa
Author-X-Name-Last: Halim
Author-Name: Pallab Mozumder
Author-X-Name-First: Pallab
Author-X-Name-Last: Mozumder
Title: Impacts of transient and permanent environmental shocks on internal migration
Abstract: 
 We examined whether floods and cyclones, the shocks that are transient in nature, affect interregional migration differently compared to riverbank erosion that causes loss of lands and thus generates permanent shocks. We tracked Household Income and Expenditure Survey 2000 participants in nine coastal districts of Bangladesh and collected further information in 2015. Our analyses suggest that both transient and permanent shocks induce households to migrate, but the effect is higher for the latter category. Using a difference-in-differences setting, we find that migrants’ income and expenditure increase relative to their counterparts, indicating that facilitating migration may improve welfare in disaster-prone countries.
Journal: Applied Economics
Pages: 333-356
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2087859
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2087859
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:333-356



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2089345_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Introducing new endogeneity into a simultaneous equation model: an application to corporate finance
Abstract: 
 Corporate finance data, such as cash holdings and dividend payments, are simultaneously determined. In this study, new endogeneity was introduced into a simultaneous equation model. The proposed model features a correlation between the explanatory variable in the first equation and the disturbance term in the second equation. The necessity of this endogeneity can be derived from a theoretical requirement and/or model identification requirement. Covariance structure analysis was performed to estimate this model using the maximum likelihood method. The efficacy of the proposed model is assessed by comparing it with conventional estimation methods, such as two-stage least squares. Finally, a Monte Carlo simulation was conducted to determine the bias conventional estimation methods produce in the case of this new endogeneity.
Journal: Applied Economics
Pages: 369-379
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089345
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089345
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:369-379



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2089346_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nhung Vu
Author-X-Name-First: Nhung
Author-X-Name-Last: Vu
Author-Name: Chau Le
Author-X-Name-First: Chau
Author-X-Name-Last: Le
Title: How much do cohesive and diversified networks improve financial access for small business?
Abstract: 
 This paper draws on transaction cost theory and network literature to examine how entrepreneurial network facilitates financial access for small and medium-sized enterprises (SMEs) in Vietnam. We characterize four major types of entrepreneurial network and find that network effects vary significantly, depending on the network members to whom entrepreneurs connect. The cohesive network appears to have the most potent positive effect on firms’ financial access by motivating them to apply for formal and informal credit actively and increasing the likelihood of their applications being approved. The financial network benefits SMEs’ credit access from the supply side, reducing transaction costs and mitigating market frictions. The value of political network is higher in the informal credit market than the formal one. Although political and financial connections do not boost entrepreneurs’ motivation to seek funding from formal capital market due to cognitive bias, they improve firms’ chances to obtain long-term funds if requested. Lastly, the benefit of diversified network does exist, but its marginal effect on firms’ access to financial resources is too small to gauge any practical significance.
Journal: Applied Economics
Pages: 380-396
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089346
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089346
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:380-396

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2091106_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ahmet Ozkan
Author-X-Name-First: Ahmet
Author-X-Name-Last: Ozkan
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Title: The predictors of intent to leave in the accounting and finance sector in Asia-Pacific countries: a cross-industrial meta-analysis study
Abstract: 
 The main aim of this study was to survey the relationships between intent to leave and its strongest antecedents in the accounting and finance industry in Asia-Pacific countries. Novel to the literature, we also aim to test the moderating effects of continent to compare the results in Asia to the ones in Oceania and to test the moderating effect of industry to make a cross-industrial comparison. This study used meta-analysis technique and reviewed the studies in Scopus, Web of Science, GoogleScholar, and ProQuest to bring together 217 suitable studies. Twenty-four of these studies providing 32 correlation values are in the accounting and finance industry and 192 studies providing 309 correlation values are in other industries. Job satisfaction, organizational commitment, and burnout are chosen as the strongest antecedents of intent to leave and 217 studıes were used. The meta-analysis results showed that all the data sets regarding the surveyed relationships were heterogeneous and none of them included publication bias. The effect size of the relationship between job satisfaction and organizational commitment was the highest in the accounting and finance industry (r = 0.631). The effect sizes of job satisfaction, organizational commitment, and burnout on intent to leave were medium in the accounting and finance industry. The moderator analysis results suggested that region as a moderator for the relationship between burnout and intent to leave and industry is a significant moderator to explore the relationships between job satisfaction and intent to leave and for the relationships between organizational commitment and intent to leave. This meta-analysis compares the accounting and finance sector to other sectors in Asia-Pacific countries and it is the only study that could make such a comparison in this region.
Journal: Applied Economics
Pages: 467-486
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091106
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091106
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:5:p:467-486



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2091107_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gimede Gigante
Author-X-Name-First: Gimede
Author-X-Name-Last: Gigante
Author-Name: Francesco Rubinacci
Author-X-Name-First: Francesco
Author-X-Name-Last: Rubinacci
Title: Explaining M&A performance: a configurational approach
Abstract: 
 Finance and management literature has witnessed numerous contributions analysing the market reaction to M&A deals and how this is affected by acquirer-, target- and deal-specific factors. However, if, on the one hand, the literature seems to agree that, generally, an M&A announcement has a negative impact on acquirer’s stock performance, scholars do not reach unanimous conclusions regarding the impact of individual variables on the acquirer’s performance. In response, the aim of this study is to demonstrate the potential of a configurational approach, in understanding M&A deals and their impact on acquirer’s stock performance. In this respect, a specific configuration of features was identified that, in contrast with the common belief of negative impact on acquirer’s stock returns associated with M&A announcements, registers a positive performance. This suggests that the focus of the literature should not be on one single factor, rather on evaluating holistically an M&A transaction, and this represents the main contribution of this study.
Journal: Applied Economics
Pages: 487-503
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091107
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091107
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:5:p:487-503



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2091108_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thomas J. Weiss
Author-X-Name-First: Thomas J.
Author-X-Name-Last: Weiss
Author-Name: Lee A. Craig
Author-X-Name-First: Lee A.
Author-X-Name-Last: Craig
Author-Name: Julianne Treme
Author-X-Name-First: Julianne
Author-X-Name-Last: Treme
Title: The spy who dined well: James Bond and the real cost of fine dining
Abstract: 
 We constructed a time series of menu prices for the identifiable restaurants at which James Bond dined in France that yields one of the few international price series representing luxury services. We also compiled a time series on the salary of workers in the British Civil Service at Grade 7, like Bond, from 1953 to 2019. Our results indicate that French restaurant prices increased faster than Grade 7 salaries over the entire period and changes in the British exchange rate were not favourable for Bond. To dine weekly in France, during the 1950s and 1960s, Bond would have spent 18% of his salary; whereas over the course of the Euro era the same basket of luxury services would have required on average 26% of his salary.
Journal: Applied Economics
Pages: 504-517
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091108
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091108
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:5:p:504-517



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2091109_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yang Li
Author-X-Name-First: Yang
Author-X-Name-Last: Li
Title: Variation in standard errors in event-study design: insights from empirical studies and simulations
Abstract: 
 A growing body of empirical research in applied economics exploits event-study design to show the dynamic effects of policy intervention. This article documents an interesting pattern in these empirical applications: cluster-robust standard errors (CRSE) from event study generally exhibit a decreasing trend over the pre-event periods, while standard errors (SEs) without clustering adjustment take similar values across pre-event periods. This article explores possible explanations for this recurrent issue by documenting the pervasiveness of this pattern across empirical applications and by Monte Carlo simulations. The simulation results show that CRSE generally present a decreasing pattern in pre-event periods and more so when intra-cluster correlation is high. The SEs also exhibit a decreasing trend using wild bootstrap and a more robust statistical inference in the case of few clusters. Overall, my results suggest that within-cluster correlation contributes to explaining the pattern.
Journal: Applied Economics
Pages: 518-530
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091109
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091109
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:5:p:518-530



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2091110_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Danny Klinenberg
Author-X-Name-First: Danny
Author-X-Name-Last: Klinenberg
Author-Name: Richard Startz
Author-X-Name-First: Richard
Author-X-Name-Last: Startz
Title: Covid, colleges, and classes
Abstract: 
 At the start of the 2020 school year, some colleges chose to reopen in person while others offered primarily online classes. We find that colleges responded to financial and other incentives largely as one might expect. Larger shares of revenue attributed to in-person activities, such as dorms and dining halls, led schools to reopen in person. In general, the share of revenue due to tuition and fees had little association with reopening in-person, which is consistent with the idea that the effect of the mode of reopening on enrolment was ambiguous. However, private schools experiencing financial distress due to tuition and fees were more likely to reopen in-person while public schools were less likely. Public colleges were influenced by political pressures and the fraction of students from out of state, while private schools responded to the severity of COVID in their local community.
Journal: Applied Economics
Pages: 531-545
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091110
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091110
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:5:p:531-545



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2091745_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Joanna Maria Stawska
Author-X-Name-First: Joanna Maria
Author-X-Name-Last: Stawska
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: Fiscal and monetary interactions in the European countries: panel data analysis
Abstract: 
 The importance of the decisions made by central banks and governments has been increasing recently, especially in the EU countries. The relationships between short-term interest rates, inflation rates, and public deficits have not been thoroughly described in the literature concerning the recent European cases. It is worth observing how the relationships between the key variables in the field of monetary and fiscal policy behave in various groups of countries, e.g. in countries with low/high General Government deficits or in countries with low high public debt. The aim of the article is to empirically analyse the relationship between interest rates, inflation rates, and public deficits in European countries in the years between 1996–2019. We studied the relationships between interest rates, inflation rates, and public deficits. We turned to dynamic panel data methods (two-step system GMM). First, interest rates and inflation rates have been related following the Taylor-rule direction across the European economies. Second, we have also found a positive relationship between inflation rates and public deficits, but reverting the postulated Sargent and Wallace (1981) hypothesis of seigniorage. Third, deficit and inflation rates have positive relations across European observations but more significantly in the cases of high deficits or with highly indebted economies.
Journal: Applied Economics
Pages: 562-576
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091745
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091745
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:5:p:562-576



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2091744_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Carmelo García-Pérez
Author-X-Name-First: Carmelo
Author-X-Name-Last: García-Pérez
Author-Name: Mercedes Prieto
Author-X-Name-First: Mercedes
Author-X-Name-Last: Prieto
Author-Name: Jorge Seva
Author-X-Name-First: Jorge
Author-X-Name-Last: Seva
Author-Name: Hipolito Simon
Author-X-Name-First: Hipolito
Author-X-Name-Last: Simon
Author-Name: Raquel Simón-Albert
Author-X-Name-First: Raquel
Author-X-Name-Last: Simón-Albert
Title: A multidimensional operationalization of precarious employment with a counting approach: evidence from Spain
Abstract: 
 The article proposes a novel multidimensional operationalization of precarious employment using the Alkire-Foster dual threshold counting approach methodology. The proposal is made in a context in which, although precarious employment tends to be considered a multidimensional construct characterized by an accumulation of unfavourable features of employment quality, there is neither a standard and generally accepted definition nor operationalization of the phenomenon in the literature. The proposed methodology has the advantages that it can be easily applied to the usual content of most labour surveys, and that it allows an analysis of both the scale and the nature of precariousness. The illustrative evidence obtained for Spain reveals both a high incidence of multidimensional precariousness (affecting almost 40% of wage earners) and a high intensity (multidimensional precarious wage earners suffer from around 3 job deprivations). Moreover, it shows that employment precariousness is highly persistent over time and tends to grow over time and that there is great heterogeneity in the scope of the phenomenon according to its individual incidence and among different groups of workers.
Journal: Applied Economics
Pages: 546-561
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091744
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091744
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:5:p:546-561

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2092592_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jisheng Yang
Author-X-Name-First: Jisheng
Author-X-Name-Last: Yang
Author-Name: Jiaolong Li
Author-X-Name-First: Jiaolong
Author-X-Name-Last: Li
Author-Name: Yanjun Cao
Author-X-Name-First: Yanjun
Author-X-Name-Last: Cao
Title: Analysis of peer effects on consumption in rural China based on social networks
Abstract: 
 This study empirically analyses peer effects on daily essential consumption and social related expenditure in rural China, where clan clustering often characterizes villages. The proportion of peer effects and autonomous behaviour in households’ consumption behaviour is estimated by quasi-maximum likelihood estimation of the spatial autoregressive model, which includes the differences in characteristics between the household and its peers. It shows that, households put more weight on peer effects in daily essentials consumption, whereas more weight is put on autonomous behaviour in social related expenditure. In addition, peer effects may be significantly overestimated, especially for clothing and human affairs expenditure, if the differences in characteristics between the household and its peers are not considered.
Journal: Applied Economics
Pages: 617-635
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2092592
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2092592
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:6:p:617-635



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2092053_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Messaoud Chibane
Author-X-Name-First: Messaoud
Author-X-Name-Last: Chibane
Title: Can COVID-19 solve the equity premium puzzle?
Abstract: 
 We propose a new approach for estimating rare disaster event models where we only use U.S. national consumption data as an alternative to the ubiquitous Barro and Ursúa’s (2008, 2012) multi-country data set. We find that the 2020 COVID crisis unambiguously reveals the presence and significance of rare disasters in consumption dynamics. Using our estimated parameters and recursive preferences, our approach is able to solve the risk-free rate and equity premium puzzles without resorting to multi-country data in estimating the model. Our analysis shows that the severity of disasters is vastly underestimated in the U.S. and that more than 400 years of consumption data would be necessary to get an accurate estimate.
Journal: Applied Economics
Pages: 603-616
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2092053
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2092053
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:6:p:603-616



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2093829_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Siliang Guo
Author-X-Name-First: Siliang
Author-X-Name-Last: Guo
Author-Name: Heng Ma
Author-X-Name-First: Heng
Author-X-Name-Last: Ma
Title: Will companies take the initiative in green technology innovation? Empirical evidence from listed manufacturing companies in China
Abstract: 
 Green technology innovation (GTI) is an important driver for national green development and a strong fulcrum for the clean production of companies. This paper focuses on the impact of top management team’s (TMT’s) inherent characteristics on GTI from the perspectives of TMT heterogeneity and text tone in management discussion and analysis (MD&A), as well as the moderating role of executive compensation incentives and financial constraints. The results reveal that: a) the TMT heterogeneity has different effects on companies’ GTI; b) the tone in MD&A can significantly promote the companies’ GTI; c) both executive compensation incentives and financial constraints significantly adjust the relationship between the TMT heterogeneity or the tone in MD&A on GTI but in different directions. Moreover, the basic conclusions suitable for non-state-owned companies yet differ in state-owned companies considering the property heterogeneity. Thus, this paper constructs a new integrated framework of TMT heterogeneity, tone in MD&A, executive compensation incentives and financial constraints to stimulate the enthusiasm and initiative of companies to develop GTI, which has an important practical significance on accelerating the sustainable development of green production in developing countries. Finally, this paper oﬀers corresponding policy recommendations.
Journal: Applied Economics
Pages: 636-652
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2093829
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2093829
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:6:p:636-652



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2093830_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ruifeng Xu
Author-X-Name-First: Ruifeng
Author-X-Name-Last: Xu
Author-Name: E Guan
Author-X-Name-First: E
Author-X-Name-Last: Guan
Title: Can blockchain innovation promote total factor productivity? Evidence from Chinese-listed firms
Abstract: 
 Although the importance of digital economy development has gradually been attached, blockchain technology has been widely questioned in China because it originated from bitcoin, which has been abandoned in China. Can blockchain innovation promote total factor productivity? Based on the blockchain patent data of Chinese-listed firms from 2012 to 2020, we show that blockchain innovation activities can improve the total factor productivity (TFP) of enterprises and verify its robustness using instrumental variable approach, system GMM and Heckman’s two-step selection method. Results of mediation effect model show that enterprises’ blockchain innovation activities mainly improve TFP through three channels: alleviating financing constraints, reducing supply chain concentration and inefficient investment. Heterogeneity analysis shows that electronic digital data processing blockchain patents have the highest practical value, while financial blockchain innovation inhibits the improvement of TFP in China. Blockchain innovation can bring positive effects on the TFP of manufacturing enterprises and leasing and business service enterprises. The increase in TFP of leasing and business service enterprises brought by blockchain innovation is nearly 70 times that of the baseline regression. We further provide blockchain innovation development suggestions for Chinese government based on these conclusions.
Journal: Applied Economics
Pages: 653-670
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2093830
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2093830
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:6:p:653-670



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094327_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Getu Tigre
Author-X-Name-First: Getu
Author-X-Name-Last: Tigre
Author-Name: Almas Heshmati
Author-X-Name-First: Almas
Author-X-Name-Last: Heshmati
Title: Smallholder farmers’ crop production and input risk analysis in rural Ethiopia
Abstract: 
 Different types of risks are inherent in agricultural production. This study examines agricultural input risks faced by smallholder farmers in rural Ethiopia. It uses data from farm household surveys covering the period 1995–2015. The study uses a stochastic production function approach for estimating the mean production and risks of agricultural inputs. The mean production estimation results are consistent with the economic theory of conventional inputs. Land and labour have higher elasticities than the other inputs. The variance or risk estimation results show that fertilizers and labour are risk-decreasing inputs, while land is a risk-increasing input. Crop diversification has a risk-decreasing impact. The more farmers diversify their crops, the less is the yield variability. However, the risk variation effects of farm inputs vary across regions in the country. For example, risk-decreasing effects of fertilizers are high in the Oromia region, moderate in the Southern Nations and Nationalities and low in the Amhara regional state. Variations in regional input risks need to be considered in national agriculture risk management and food security efforts. The risk variation effects of these inputs decreased over time.
Journal: Applied Economics
Pages: 671-689
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094327
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094327
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:6:p:671-689



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2091746_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Inna Zaytseva
Author-X-Name-First: Inna
Author-X-Name-Last: Zaytseva
Author-Name: Daniil Shaposhnikov
Author-X-Name-First: Daniil
Author-X-Name-Last: Shaposhnikov
Title: Moneyball in offensive versus defensive actions in football
Abstract: 
 Market inefficiencies, known as Moneyball effect, have been recently documented in different sports and their scope largely remains an empirical question. This article focuses on football, where fans and club managers seem to value forwards more than defenders. Apparently, football rules imply equally important roles for goals scored and goals conceded in a team win. Economic theory in this case suggests that marginal returns on offensive and defensive efforts should be equal. This prediction can be potentially violated, resulting in labour market inefficiency. To test this hypothesis, we use two separate data sets at team-game and player-season levels (1224 and 772 observations, respectively) from two seasons (2017/18–2018/19) of the German Bundesliga. We compare the relative contribution of the offensive and defensive actions to a team win with the same relative contribution to players’ market value and show that defensive actions are relatively underestimated by the market compared to the offensive.
Journal: Applied Economics
Pages: 577-593
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2091746
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091746
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:6:p:577-593



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2091747_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: J. Stephen Ferris
Author-X-Name-First: J. Stephen
Author-X-Name-Last: Ferris
Author-Name: Bharatee Bhusana Dash
Author-X-Name-First: Bharatee Bhusana
Author-X-Name-Last: Dash
Title: Does a swing voter model with voter turnout reflect the closeness of the Indian state elections: 1957 - 2018?
Abstract: 
 In the classic model of Besley, Persson and Strum voters are viewed as either committed to a political party or uncommitted, available for capture by the offer of policies that better reflect the programs they desire. Through an inter-party electoral competition for the support of such swing voters government services become aligned with those most desired by the electorate and the efficiency by which government services are provided is enhanced. In this paper, we extend the BPS model to incorporate voter turnout, develop a new method of measuring the salience of noneconomic issues and then test the model’s predictions on election data from 14 Indian States between the years 1957 and 2018. The results are broadly consistent with the predictions of the model but fit particularly well the lesser developed, so-called BIMAROU states. That is, an election is more competitive, as measured by having a smaller first versus second place vote share margin, when voter turnout is higher and both the proportion of asymmetrically adjusted safe seats and the state distribution of vote volatilities across constituencies are lower.
Journal: Applied Economics
Pages: 594-602
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2091747
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091747
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:6:p:594-602

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094330_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Wei Fong Pok
Author-X-Name-First: Wei Fong
Author-X-Name-Last: Pok
Author-Name: M. Humayun Kabir
Author-X-Name-First: M. Humayun
Author-X-Name-Last: Kabir
Author-Name: Martin Young
Author-X-Name-First: Martin
Author-X-Name-Last: Young
Title: Media content, sentiment and emerging market futures returns
Abstract: 
 The paper attempts to capture the sentiment derived from routine financial news and outlines the impact of the media content on the main index futures contracts of Hong Kong and Singapore. News factors are generated from routine financial news, but pessimistic market sentiment factors are more prevalent. High pessimistic news factors predict lower returns for the same day, and the returns start to reverse two days after the news for Hong Kong and Singapore markets. The finding is consistent with the sentiment theory. There is a significant reversal in returns, and the reversal in returns offsets the initial changes entirely. The bad news factor does not seem to work as a proxy for trading costs. The sub-sample results are similar to the whole sample. We also find the significant impact of U.S. news sentiment on news factors, futures return, and open interests in both markets. Trading strategies based on bad news factors generate economically significant returns when trading costs are considered.
Journal: Applied Economics
Pages: 724-749
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094330
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094330
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:724-749



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094329_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Changling Sun
Author-X-Name-First: Changling
Author-X-Name-Last: Sun
Author-Name: Nian Li
Author-X-Name-First: Nian
Author-X-Name-Last: Li
Author-Name: Peng Gao
Author-X-Name-First: Peng
Author-X-Name-Last: Gao
Author-Name: Muhammad Asif Khan
Author-X-Name-First: Muhammad Asif
Author-X-Name-Last: Khan
Author-Name: Zilan Bi
Author-X-Name-First: Zilan
Author-X-Name-Last: Bi
Title: Can core competence help enterprises reduce the cost of debt? – empirical evidence based on text analysis
Abstract: 
 This article constructs the measurement index of core competence by text analysis method and empirically tests its impact on the cost of debt. We find that the stronger the core competence, the lower the cost of debt. The mechanism test shows that the impact of core competence on the cost of debt is mainly realized by reducing the default risk and alleviating the agency problem. In further research, after distinguishing the types of core competence, we find that core competence of resources, especially the tangible resources, is the key factor to effectively reduce the cost of debt; after distinguishing the nature of property rights, we find that the impact of core competence on the cost of debt mainly plays a role in non-state-owned enterprises with strong financing constraints. This article not only enriches the literature on the economic consequences of core competence and factors affecting the cost of debt, but also provides scientific support for the government and other relevant department to alleviate the problem of financing difficulties and financing expensive.
Journal: Applied Economics
Pages: 710-723
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094329
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094329
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:710-723



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094331_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nguyen Minh Ha
Author-X-Name-First: Nguyen Minh
Author-X-Name-Last: Ha
Author-Name: Van Huong Le
Author-X-Name-First: Van Huong
Author-X-Name-Last: Le
Author-Name: Cuong Tran
Author-X-Name-First: Cuong
Author-X-Name-Last: Tran
Title: Difference in the role of public governance for enterprises performance of ownership types in Vietnam
Abstract: 
 This paper aims to examine the difference in role of public governance on the performance of each business ownership type in Vietnam. Using FGLS regression and Blinder – Oaxaca decomposition methods, the study finds out gaps of enterprises performance among state-owned enterprises, non-state enterprises and FDI enterprises in Vietnam in the period 2016–2019. The variation is due to business characteristics and distinction between ownership types. Besides, the decomposition results show that public governance is a factor of the enterprises performance’s differentiation in Vietnam, and state-owned enterprises are often more favoured than FDI enterprises and non-state enterprises. Incentives for state-owned enterprises are mainly presented in policies, such as information public and transparency, reducing time-cost, reducing informal charges and local fair competition promotion. Meanwhile, incentives for FDI enterprises are mainly presented in policies, such as land policy, information public and transparency, reducing time-cost, fair competition promotion, business support services, local legal frame and security. Specifically, the study implies that improving public governance in Vietnam in the period 2016–2019 has resulted in positively effect on state-owned enterprises’ performance and fairly low effect on those of FDI enterprises and non-state enterprises.
Journal: Applied Economics
Pages: 750-763
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094331
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094331
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:750-763



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094332_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rohit Prasad
Author-X-Name-First: Rohit
Author-X-Name-Last: Prasad
Author-Name: Prageet Aeron
Author-X-Name-First: Prageet
Author-X-Name-Last: Aeron
Author-Name: Varadharajan Sridhar
Author-X-Name-First: Varadharajan
Author-X-Name-Last: Sridhar
Title: New determinants of spectrum price in a 5G world
Abstract: 
 The theoretical models presented in the article establish the possibility that reduced congestion in unlicenced bands can reduce the profits of telecommunications operators, and consequently, depress spectrum prices. Further, certain modes of deploying licenced and unlicenced spectrum bands to provide services may render competitive dynamics uncertain, unpredictable, and unstable. Finally, the advent of Content and Application Providers (CAPs) providing substitutes or complements to traditional telecommunications services can also reduce operator profits. On the other hand, benign impacts on operator profits and spectrum prices cannot be ruled out. Given these possibilities, an empirical analysis is carried out to examine the impact of the participation of CAPs and the reduced congestion in unlicenced networks on spectrum prices. The variables of VOIP fixed-line subscribtions and mobile broadband density are used as proxies for the increased usage of unlicenced spectrum and the entry of CAPs as providers of substitutes and complements. These variables are consistently significant in our analysis indicating that there are indeed new drivers determining spectrum prices. Policy implications of the findings are enumerated.
Journal: Applied Economics
Pages: 764-782
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094332
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094332
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:764-782



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094879_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Oveis Madadian
Author-X-Name-First: Oveis
Author-X-Name-Last: Madadian
Author-Name: Maud Van den Broeke
Author-X-Name-First: Maud
Author-X-Name-Last: Van den Broeke
Title: R&D investments in response to performance feedback: moderating effects of firm risk profile and business strategy
Abstract: 
 R&D investments in response to performance feedback have been extensively studied. We show that both firm risk profile (i.e. low vs high risk) and business strategy (i.e. Prospector vs Defender), two aspects understudied in this context, have incremental moderating effects (both separate and joint) on this R&D-performance feedback relationship. Using a sample of US listed firms from 2000 to 2019, we observe that, when performance relative to aspiration level decreases (increases), without controlling for moderating effects of risk and strategy, firms tend to increase (decrease) R&D investments. However, as risk profile changes from low to high risk, responses to performance feedback tend to change from decreasing R&D or maintaining status quo to increasing R&D investments. We also find that, in response to performance deviation from aspiration level (regardless of the direction), Defenders tend to decrease R&D investments, regardless of risk profile, whereas Prospectors tend to increase R&D investments (maintain status quo) when their performance relative to aspiration level decreases (increases).
Journal: Applied Economics
Pages: 802-822
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094879
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094879
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:802-822



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094328_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Weibo Yan
Author-X-Name-First: Weibo
Author-X-Name-Last: Yan
Author-Name: Peng Nie
Author-X-Name-First: Peng
Author-X-Name-Last: Nie
Title: Child education-induced migration and its impact on the economic behaviors of migrated households in China
Abstract: 
 Using the 2011–2013 China Migrants Dynamic Survey, this paper utilizes the quarter of the year in which a child was born as an instrumental variable to measure child education shock and explores its impact on migrated households. We only find significant education-induced migration among boys, which we attribute to son preference in China. Due to child education-induced migration, the per capita household consumption increases by 56.7%, the savings rate decreases by 40.3%, and remittances sent home decline by about 1.3 monthly household incomes, however, there are no effects on income, food consumption, and house rent. After exploring the mechanisms underlying child education-induced migration, we find that children migrate with their parents are less likely to pursue a better education in urban areas. Because of the closure and consolidation of rural primary schools, children are forced to migrate due to their education needs. The accessibility of primary schools in urban areas is also responsible for migration decisions regarding children. This paper facilitates understanding of how Hukou influences gender inequality in China. We also provide evidence to show that the segregation of the education system through Hukou is a possible explanation for the low consumption rate of migrants.
Journal: Applied Economics
Pages: 691-709
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094328
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094328
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:691-709



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094333_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Faheem Ur Rehman
Author-X-Name-First: Faheem Ur
Author-X-Name-Last: Rehman
Author-Name: Md Monirul Islam
Author-X-Name-First: Md Monirul
Author-X-Name-Last: Islam
Title: Financial infrastructure—total factor productivity (TFP) nexus within the purview of FDI outflow, trade openness, innovation, human capital and institutional quality: Evidence from BRICS economies
Abstract: 
 BRICS countries’ contribution to the global economy has received wider attention. The critical factor behind their role is financial market reform that stimulates these economies’ productivity growth. This research contributes to constructing a comprehensive index of financial infrastructure and measuring its relationship with BRICS economies’ total factor productivity (TFP) within the purview of outward FDI, trade openness, human capital, innovation and institutional quality during 1990–2019 using the CS-ARDL technique. The findings divulge a significant and positive role of financial infrastructure in TFP both in the long and short runs, while outward FDI, trade openness, human capital, and innovation walk on the same footing in BRICS countries. Moreover, the CS-ARDL-based investigated findings remain the same across the two-way fixed effect with Driscoll and Kraay Standard Error technique. Therefore, BRICS countries’ more promotion of financial dynamics and other ancillary economic, demographic, and technological factors is critical to stepping towards the spectacular growth trajectory.
Journal: Applied Economics
Pages: 783-801
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094333
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094333
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:783-801

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2118223_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chan Hyeon Hur
Author-X-Name-First: Chan Hyeon
Author-X-Name-Last: Hur
Author-Name: Kihan Kim
Author-X-Name-First: Kihan
Author-X-Name-Last: Kim
Title: The anticipated legacies of mega sporting events: An econometric analysis of Olympic announcement effect on the real estate market in small communities
Abstract: 
 In this study, we examine the influence of the successful Olympic bid announcement on real estate prices for properties in host districts of the 2018 PyeongChang Olympic Winter Games. We perform a series of simple mean comparisons and hedonic spatial difference-in-differences analyses on a total of 198,048 apartment sales records for 1,059 apartment complexes collected from 2008 to 2017—3 years prior to winning the Olympic bid to 6 years after. The sales prices of the apartment complexes in the three Olympic host districts were 6.6% higher than the nonhost districts after eliminating the difference that had already existed before the announcement. Further analyses indicate a price premium for the apartments located near the main Olympic stadium. This study extends the research on the effects of Olympic bid announcements on real estate prices for small host cities with little international awareness.
Journal: Applied Economics
Pages: 823-838
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2118223
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118223
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:823-838



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095338_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Meng-Chi Tang
Author-X-Name-First: Meng-Chi
Author-X-Name-Last: Tang
Title: Manageable hospital service volume under global budgeting: evidence from a policy reform in Taiwan
Abstract: 
 This paper investigates whether health care providers change their behaviour in response to different payment structures. Using a policy reform in Taiwan that allowed hospitals to switch from a global budgeting system, a reweighted fee-for-service system, to an individual budgeting system, a capitation system, the results show that the individual budgeting system led to lower services volumes. This effect is significant for more discretionary care but not for less elective services like cancer care.
Journal: Applied Economics
Pages: 894-906
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095338
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:894-906



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094881_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Cahit Guven
Author-X-Name-First: Cahit
Author-X-Name-Last: Guven
Author-Name: Panagiotis Sotirakopoulos
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Sotirakopoulos
Author-Name: Aydogan Ulker
Author-X-Name-First: Aydogan
Author-X-Name-Last: Ulker
Title: Individual labour market transitions of Australians during and after the National COVID-19 Lockdown
Abstract: 
 We examine the individual labour market transitions of Australians during and after the National COVID-19 Lockdown, controlling for demographic characteristics and person fixed effects across different subgroups of the population using the Longitudinal Labour Force Survey. The National COVID-19 Lockdown (which began on 21 March 2020 with the introduction of social distancing rules and the closure of non-essential services across individual states and territories and lasted until the end of June 2020) decreased the overall labour force participation by 3% and increased unemployment by 1.8%. However, the economy recovered to a certain extent after the lockdown, with labour force participation increasing by 0.051% and unemployment declining by 0.049% for each additional week after the end of the lockdown. Our conditional estimates show that the national lockdown did not affect the genders differently in terms of unemployment, while females recovered faster during the post-lockdown period. People working in transport, postal, administrative, and arts and recreation services decreased their working hours significantly during the lockdown relative to those employed in other industries, but we do not observe any significant difference in their post-lockdown recovery patterns. Our results could help policy makers better target the labour market outcomes of the most at-risk individuals.
Journal: Applied Economics
Pages: 853-868
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094881
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094881
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:853-868



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094880_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Imlak Shaikh
Author-X-Name-First: Imlak
Author-X-Name-Last: Shaikh
Author-Name: Mohd Anwar
Author-X-Name-First: Mohd
Author-X-Name-Last: Anwar
Title: Digital bank transactions and performance of the Indian banking sector
Abstract: 
 Our study examines the impact of digital bank transactions on the performance of Indian banks. The study aims to identify the digital mode of transaction parameters that influence financial and operating performance and reduce bank costs. A panel data set has been prepared for 2011 to 2020, considering 32 public and private banks. On the prima facie, the share of public sector banks has declined in the digital mode of transactions on the counterpart of private sector banks. It’s evidenced that a 1% increase in the value of Real-Time Gross Settlement (RTGS) and National Electronic Fund Transactions (NEFT) causes a rise of 0.03% and 0.08% in the business per employee, respectively. Indeed, a change in the RTGS and NEFT transaction further explains CASA to Deposit ratio (0.016% and 0.0078%). Also, a change in RTGS shows a prominent effect on the advances (0.7%). Credit card transactions at ATMs and POS have negatively impacted the cost of funds. Our study proposes two practical implications: First, acceleration in promoting RTGS-based transactions is required; consequently, it will enhance the bank’s performance. Secondly, banks should facilitate credit-based digital transactions to lessen the cost of funds.
Journal: Applied Economics
Pages: 839-852
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094880
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094880
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:839-852



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094883_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Amir Arjomandi
Author-X-Name-First: Amir
Author-X-Name-Last: Arjomandi
Author-Name: Hassan F. Gholipour
Author-X-Name-First: Hassan F.
Author-X-Name-Last: Gholipour
Author-Name: Reza Tajaddini
Author-X-Name-First: Reza
Author-X-Name-Last: Tajaddini
Author-Name: Charles Harvie
Author-X-Name-First: Charles
Author-X-Name-Last: Harvie
Title: Environmental expenditure, policy stringency and green economic growth: evidence from OECD countries
Abstract: 
 This study explores the link between environmental policy stringency and spending and the growth of environmental GDP and productivity. Using the Pooled Mean Group Autoregressive Distributed Lag model, we examine the short- and long-term effectiveness of environmental policy stringency and environmental spending on pollution-adjusted GDP and productivity growth for a sample of OECD nations. Although these policies and their outcomes differ considerably from country to country, our findings reveal that governments’ expenditure on environmental protection emerges as a significantly stimulatory factor of national output in the short-term. Our long-run results show that both tighter environmental policies and environmental expenditure can slow down ‘green’ GDP and productivity growth over time with policy stringencies having a weaker impact. Overall, our findings do not support the Porter Hypothesis, but rather confirm the widely held view that these policies may hinder economic activity and growth.
Journal: Applied Economics
Pages: 869-884
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094883
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094883
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:869-884



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095339_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lionel Artige
Author-X-Name-First: Lionel
Author-X-Name-Last: Artige
Author-Name: Sousso Bignandi
Author-X-Name-First: Sousso
Author-X-Name-Last: Bignandi
Title: The firm size distribution: evidence from Belgium
Abstract: 
 The firm size distribution (FSD) is one of the most well-known economic empirical regularity in market economies. Its functional form, postulated in macroeconomic models with heterogeneous firms, can be approximated by a parametric distribution. However, the parametric approximations proposed in the literature have long been contested due to the lack of unbiased databases and robust statistical methods. This paper addresses these shortcomings. First, a robust estimation method is proposed to test the fit of parametric distributions and to determine the one offering the best fit at different truncation thresholds. Then, by applying it to a comprehensive database of Belgian firms for the period 2006–2012, the results show that the lognormal distribution is a better approximation of the empirical FSD than the Pareto distribution. These results hold true at the aggregate, sectoral and regional levels establishing that the shape of the aggregate distribution is not an aggregation artefact arising from the potential distributional heterogeneity of sectoral or regional subsets. This empirical evidence is essential information for tracing the root causes of a plausible underlying stochastic model explaining firm dynamics.
Journal: Applied Economics
Pages: 907-923
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095339
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095339
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:907-923



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2094886_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kuang-Cheng Chai
Author-X-Name-First: Kuang-Cheng
Author-X-Name-Last: Chai
Author-Name: Jiawei Zhu
Author-X-Name-First: Jiawei
Author-X-Name-Last: Zhu
Author-Name: Hao-Ran Lan
Author-X-Name-First: Hao-Ran
Author-X-Name-Last: Lan
Author-Name: Yujiao Lu
Author-X-Name-First: Yujiao
Author-X-Name-Last: Lu
Author-Name: Ke-Chiun Chang
Author-X-Name-First: Ke-Chiun
Author-X-Name-Last: Chang
Title: The spillover effects of corporate giving in china: effects of enterprise charitable giving and exposure on enterprise performance
Abstract: 
 Panel data from China’s listed enterprises from 2014–2019 was selected as a sample to study the relationship between enterprise charitable giving, exposure, and enterprise performance in this study. It was revealed that enterprise charitable giving has a U-shaped relationship with enterprise performance. Further research has found that philanthropic exposure plays a positive moderating role in the relationship between charitable giving and enterprise performance. This study provides information on the scale of donation from the perspective of enterprise performance, suggesting new paths for enterprises to improve their performance and help China increase funds for disaster relief and post-disaster reconstruction.
Journal: Applied Economics
Pages: 885-893
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094886
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094886
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:885-893

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095340_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bastien Lextrait
Author-X-Name-First: Bastien
Author-X-Name-Last: Lextrait
Title: Scaling up SMEs’ credit scoring scope with LightGBM
Abstract: 
 Small and Medium Size enterprises (SMEs) are critical actors in the fabric of the economy. Their growth is often limited by the difficulty in obtaining financing. Basel II accords enforced the obligation for banks to estimate the probability of default of their obligors. Currently used models are limited by the simplicity of their architecture and the available data. State of the art machine learning models are not widely used because they are often considered as black boxes that cannot be easily explained or interpreted. We propose a methodology to combine high predictive power and powerful explainability using various Gradient Boosting Decision Trees (GBDT) implementations and Shapley additive explanation (SHAP) values as post-prediction explanation model. This method is developed and tested using a nation-wide sample of French companies, and a history of past failures extracted from commercial court decisions. The performances of GBDT models are compared with traditional credit scoring algorithms. GBDT provides the best performances over the test sample, while being fast to train and economically sound. Results obtained from SHAP values analysis are consistent with previous socio-economic studies. Providing such a level of explainability to complex models may convince regulators to accept their use in automated credit scoring.
Journal: Applied Economics
Pages: 925-943
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095340
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095340
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:9:p:925-943



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095346_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Keyang Li
Author-X-Name-First: Keyang
Author-X-Name-Last: Li
Author-Name: Yu Qin
Author-X-Name-First: Yu
Author-X-Name-Last: Qin
Author-Name: Guoxu Wei
Author-X-Name-First: Guoxu
Author-X-Name-Last: Wei
Author-Name: Jing Wu
Author-X-Name-First: Jing
Author-X-Name-Last: Wu
Title: What drives health-care spending in China? A nationwide decomposition analysis
Abstract: 
 In this study, we explore the geographic variation in health-care spending and its driving factors in China, using a nationwide and claim-level sample of inpatients ensured under the urban basic medical insurance schemes in 2010. We show geographic variation in health-care spending is substantial in China and is significantly larger than Medicare spending in the US. The substantial geographic variation is primarily driven by the quantity variation. We also discuss the potential correlates of the quantity of health care at the city level. The findings imply possible allocation inefficiency in China’s current urban health-care system.
Journal: Applied Economics
Pages: 1028-1043
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095346
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095346
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:9:p:1028-1043



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095345_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Marcus T. Wolfe
Author-X-Name-First: Marcus T.
Author-X-Name-Last: Wolfe
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Title: Does democracy make it easy? the influence of a sudden onset of democracy and entrepreneurship
Abstract: 
 Based on the Arab Spring event in Tunisia and using neighbouring countries as the control group, we test whether the onset of democracy increases entrepreneurial activity in the medium term. In Study 1, our findings show that democracy did not change the overall new business density in Tunisia. In Study 2, we do not find an effect on engagement in startups or business ownership. However, democracy improved perception of startup skills and reduced perception of fear of failure; with only males reporting higher perceived startup skills. The findings in Study 2 are also robust to five alternate measures of democracy.
Journal: Applied Economics
Pages: 1012-1027
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095345
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095345
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:9:p:1012-1027



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095343_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiaoping Li
Author-X-Name-First: Xiaoping
Author-X-Name-Last: Li
Author-Name: Chunyang Zhou
Author-X-Name-First: Chunyang
Author-X-Name-Last: Zhou
Author-Name: Wei Huang
Author-X-Name-First: Wei
Author-X-Name-Last: Huang
Title: Heterogeneous trading of option implied volatility
Abstract: 
 We investigate the equilibrium properties of the implied volatility in the option market within the framework of a dynamic heterogeneous agent model. Fundamentalists and chartists are incorporated into our heterogeneous agent model, and they can change their types based on their previous performance. We show that the stability conditions of the model mainly depend on the relationship between the mean-reverted coefficients of fundamentalists and the extrapolation coefficients of chartists. The empirical results show that the fundamentalists and chartists of volatility coexist in the option market. However, during the market panic, especially before and after the 2008 financial crisis, chartists dominate the market.
Journal: Applied Economics
Pages: 990-998
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095343
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095343
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:9:p:990-998



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095344_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Qian Li
Author-X-Name-First: Qian
Author-X-Name-Last: Li
Author-Name: Jingyuan Yu
Author-X-Name-First: Jingyuan
Author-X-Name-Last: Yu
Title: Place-based policies and regional innovation: evidence from western development in China
Abstract: 
 Innovation is the key to economic development. This study used the difference-in-difference model to examine the impact of the Chinese Western Development Strategy (WDS) implemented in 2001 on regional innovation. The results showed that the WDS has not effectively promoted regional innovation, and this effect has strengthened annually since the second year. Regions with higher regional innovation suffer more from the policy inhibiting effect, which indicates that the policies of the WDS have not been fully utilized. A heterogeneity analysis demonstrated varying effects on cities with different administrative levels. Provincial capital cities have an absorbing effect on non-provincial capital cities. The mechanism analysis shows that the WDS has aggravated local fiscal imbalances and fiscal preference in valuing investments and neglecting people’s livelihoods. Both these factors appear as chain mediation effects. Therefore, high-quality development in the western regions requires the strengthening of the regional innovation environment and a suitable institutional path to effectively enhance regional innovation capabilities.
Journal: Applied Economics
Pages: 999-1011
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095344
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095344
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:9:p:999-1011



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095341_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Munseob Lee
Author-X-Name-First: Munseob
Author-X-Name-Last: Lee
Author-Name: Cheikh Anta Gueye
Author-X-Name-First: Cheikh Anta
Author-X-Name-Last: Gueye
Title: Do resource windfalls improve standard of living in sub-Saharan African countries?
Abstract: 
 We examine impact of resource windfall on standard of living. We introduce annual welfare measure that combines income, inequality, and health, covering 130 countries for 45 years. We investigate the effect of resource windfalls on welfare in three groups: (i) a sample of 130 countries, (ii) 28 sub-Saharan African (SSA) countries, and (iii) 9 fragile SSA countries. We find that the short-run and long-run effect of resource windfalls are welfare enhancing in the 130-country sample. However, the effect size is small in SSA countries, and is insignificant in fragile SSA countries, which emphasizes importance of governance in natural resource management.
Journal: Applied Economics
Pages: 944-962
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095341
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095341
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:9:p:944-962



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2095342_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhenhua Liu
Author-X-Name-First: Zhenhua
Author-X-Name-Last: Liu
Author-Name: Tingting Zhu
Author-X-Name-First: Tingting
Author-X-Name-Last: Zhu
Author-Name: Zhaoping Duan
Author-X-Name-First: Zhaoping
Author-X-Name-Last: Duan
Author-Name: Shanqi Xuan
Author-X-Name-First: Shanqi
Author-X-Name-Last: Xuan
Author-Name: Zhihua Ding
Author-X-Name-First: Zhihua
Author-X-Name-Last: Ding
Author-Name: Shan Wu
Author-X-Name-First: Shan
Author-X-Name-Last: Wu
Title: Time-varying impacts of oil price shocks on China’s stock market under economic policy uncertainty
Abstract: 
 The role of economic policy uncertainty in the risk transmission between crude oil and stock market cannot be ignored. However, it is unclear whether economic policy uncertainty always amplifies the impact of oil price shocks on stock market over time. This study employs the time-varying parameter structural vector autoregression with stochastic volatility (TVP-SVAR-SV) model to examine the dynamic relationship among different types of oil price shocks, economic policy uncertainty, and China’s stock market returns at the aggregate and industry levels. The empirical results are as follows: First, different types of oil price shocks and economic policy uncertainty have significant time-varying impacts on stock market returns, which mainly occur in the short term. During periods of increased economic policy uncertainty, the stock market is more sensitive to oil price shocks. Second, economic policy uncertainty provides a transmission channel for the propagation between oil price shocks and stock markets, but how does economic policy uncertainty connect oil-stock nexus depends on the origins of oil price shocks. Third, the response patterns of stock market to oil price shocks and economic policy uncertainty are heterogeneous in different industries. Our results provide important implications for policymakers and investors.
Journal: Applied Economics
Pages: 963-989
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095342
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095342
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:9:p:963-989

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097181_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Katarzyna Anna Nawrot
Author-X-Name-First: Katarzyna Anna
Author-X-Name-Last: Nawrot
Title: Assessing the effects of trade regionalism in East Asia – evidence from augmented gravity models
Abstract: 
 This paper investigates the effects of trade regionalism in East Asia from 1995 to 2018, by applying a series of gravity models. An initial, basic gravity model is repeatedly augmented to account for a range of economic, geographical, cultural, and above all institutional factors representing free trade agreements in effect. Unlike previous studies, this investigation distinguishes between the bilateral and multilateral measures of regional trading arrangements. Two interesting findings are reported. First, the results confirm the impact of trade regionalism on the export flows between the economies of East Asia in the period under study. Second, the effects of multilateral trading agreements vary greatly depending on the agreement and on the particular country’s range of influence, in particular cases showing no sufficient economic benefits. Overall, the results point to the complementarity of bilateral and multilateral trading arrangements in the region and to the emergence of a certain distinctive model of cooperation and integration in East Asia – which has been underpinned during the COVID-19 pandemic by the conclusion of the Regional Comprehensive Economic Partnership (RCEP), and which will be further verified in the post-COVID character of global trade and regional trading arrangements.
Journal: Applied Economics
Pages: 1285-1297
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097181
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097181
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1285-1297



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097184_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kichun Kang
Author-X-Name-First: Kichun
Author-X-Name-Last: Kang
Title: Heterogeneous welfare gains from import variety across regions: evidence from South Korea
Abstract: 
 Globalization has differential impacts on trade patterns and welfare gains across regions within a country. Using panel data on 16 South Korean regions over the period 2000–2015, this study shows that new import varieties led to lower regional import prices, which in turn yielded positive welfare gains. However, both the uneven growth of import varieties and different degrees of product differentiation led to heterogeneous effects on import prices and welfare gains across regions. Regional differences in import prices and welfare gains are impacted more by variety growth than by product differentiation.
Journal: Applied Economics
Pages: 1328-1340
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097184
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097184
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1328-1340



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097185_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tian-Tian Zhu
Author-X-Name-First: Tian-Tian
Author-X-Name-Last: Zhu
Author-Name: Ya-Hua Lu
Author-X-Name-First: Ya-Hua
Author-X-Name-Last: Lu
Author-Name: Yue-Jun Zhang
Author-X-Name-First: Yue-Jun
Author-X-Name-Last: Zhang
Title: Evaluating the scientific and technological innovation efficiency of universities in China: evidence from the global Malmquist–Luenberger index model
Abstract: 
 The evaluation of the scientific and technological (S&T) innovation efficiency of universities is important for the ‘double first-class’ construction in China. However, related research often only considers desirable outputs while ignoring undesirable ones, which tends to produce biased evaluation results. For this reason, this study takes the ratio of unemployed graduates as undesirable output, and uses the global Malmquist – Luenberger index method to evaluate the S&T innovation efficiency of 31 relevant universities in China during 2013–2017, then develops a panel Tobit model to analyse its influencing factors. The results reveal that: first, during the sample period, the S&T innovation efficiency of those universities improved overall, and technical progress was the main driver. Second, excluding undesirable output will result in an overestimate of the S&T innovation efficiency of universities. Third, the S&T innovation efficiency of universities features regional distribution, with high efficiency in the west and low efficiency in the east. Moreover, different regions have different drivers for the improvement of S&T innovation efficiency of universities, with technical progress for the east and technical efficiency changes for the central and west. Finally, the ‘double first-class’ construction proposal in China has significantly promoted the improvement of S&T innovation efficiency in universities.
Journal: Applied Economics
Pages: 1341-1355
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097185
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097185
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1341-1355



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097186_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yiming Chang
Author-X-Name-First: Yiming
Author-X-Name-Last: Chang
Author-Name: Xiangyuan Yu
Author-X-Name-First: Xiangyuan
Author-X-Name-Last: Yu
Author-Name: Wei Shan
Author-X-Name-First: Wei
Author-X-Name-Last: Shan
Author-Name: Fang Wang
Author-X-Name-First: Fang
Author-X-Name-Last: Wang
Title: Do bank risk-taking, deposit insurance and financial heterogeneity change periodically with the financial crisis?
Abstract: 
 Financial heterogeneity generally refers to differences in the financial environment, which will affect the efficiency and risk of a country’s financial market. This paper describes financial heterogeneity from three aspects: the difference of financial market structure, the difference of financial intervention level and the degree of financial openness, and studies the relationship between financial heterogeneity, deposit insurance coverage and bank risk-taking before and after the 2008 financial crisis, using panel data of 98 market countries. The results show that the nonlinear relationship between bank risk-taking and deposit insurance coverage. This research finds that estimated coefficients’ sign and significance of some variables, such as household saving rate, bank deposit loan spread, their interactions with deposit insurance coverage, and bank credit to bank deposits show cyclical characteristics cross periods.
Journal: Applied Economics
Pages: 1356-1370
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097186
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097186
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1356-1370



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097182_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yun-Peng Chu
Author-X-Name-First: Yun-Peng
Author-X-Name-Last: Chu
Author-Name: Yi-Pey Ou
Author-X-Name-First: Yi-Pey
Author-X-Name-Last: Ou
Title: Has the rise of China’s domestic supply chain contributed to its GDP increases?
Abstract: 
 This paper applies a structural decomposition of the input-output tables to investigate the sources of changes in the GDP of China, paying special attention to the import substitution of intermediate inputs. It is argued that the specific way GDP is decomposed in this paper sheds more light on the origin of growth than does the conventional decomposition of GDP by its final demand components. The results of the decomposition show that import substitution of intermediate products, which is an act of de-globalization of trade and a model of industrialization some Asian newly industrializing economies followed decades earlier, also became important in China, but only belatedly: in 2011–2012 and 2013–2014. The phenomenon is found to be significant in the manufacture of (i) computer, electronic and optical products, (ii) chemicals and chemical products, (iii) coke and refined petroleum products, and (iv) basic metals.
Journal: Applied Economics
Pages: 1298-1311
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097182
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097182
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1298-1311



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097187_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Tatiana Sokolova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Sokolova
Title: Assessing the impact of media sentiment on the returns of sukuks during the Covid-19 crisis
Abstract: 
 The wavelet approach covering simultaneously the time and frequency domains is employed to study the impact of the Covid-19 coverage in mass media on the performance of the Dow Jones Sukuk investment grade total return indices. The overall coherence level for the media-coverage – sukuk pairs is found to increase with the investment horizon. Multiple time-frequency regions with low level of coherence, observable along the Covid-19 systemic crisis, imply attractive diversification attributes of investing in Islamic fixed-income securities especially in times of financial stress and turmoil. We investigate coherence and phase difference patterns, which differ for distinct maturity buckets of the Sukuk indices, further highlighting their potentiality for the downside risk hedge, workable under economic and financial distress.
The influence of the Covid-19 coverage in social media on DJ sukuk indices is investigated.The wavelet approach is employed to study the interrelations via coherence/phase-difference metrics.Coherence level varies along the time and frequency scales, increasing with the investment horizon.We observe differences in the coherence patterns per maturity bucket of Shariah-compliant securities.Hedging attractiveness is less pronounced in the sukuks of 1 to 3 years of residual maturity.The findings are potentially insightful for engineering hedge strategies, based in sukuks.Sukuks possess valuable hedging attributes, non-vanishing during systemic crisis events.
Journal: Applied Economics
Pages: 1371-1387
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097187
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097187
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1371-1387



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097183_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sangram Keshari Jena
Author-X-Name-First: Sangram Keshari
Author-X-Name-Last: Jena
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Title: Integration between emerging market equity and global markets; is it fundamental or noisy? Evidence from wavelet denoised volatility spillover analysis in time and frequency domain
Abstract: 
 The study investigates the integration between the five largest emerging stock markets, Morgan Stanley Capital Emerging Market Index, and global financial markets like the US S&P 500, Brent Crude Oil and Dollar Index based on wavelet denoised volatility spillover in time and frequency domain using forecasted error variance decomposition framework. It is found that the impact of noise on the connectedness is more pronounced in the short run and declines in longer term. Further, long-term connectedness which is much higher than that of short-term connectedness confirms the existence of fundamental (noisy) concernedness in the long (short) term. The impact of noise both varies by time and frequency. The policy implications are discussed.
Journal: Applied Economics
Pages: 1312-1327
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097183
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097183
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1312-1327

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097188_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: Philemon Kwame Opoku
Author-X-Name-First: Philemon Kwame
Author-X-Name-Last: Opoku
Title: The nexus between fiscal and current account imbalances in OECD economies
Abstract: 
 We re-examine the nexus between fiscal balances and current account balances for 18 OECD countries from 1995Q1 to 2018Q1 using panel cointegration and panel vector autoregressive (VAR). The findings confirm a long-run relationship between the fiscal balance and the current account balance. Our results indicate that strengthening the fiscal balance by one percentage point of GDP improves the current account balance by about 0.1–0.3 percentage points of GDP. On the other hand, an increase in real government consumption generally worsens the current account balance. The impact of the real effective exchange rate is not statistically significant.
Journal: Applied Economics
Pages: 1389-1406
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097188
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097188
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1389-1406



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097192_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Author-Name: Anna Samarina
Author-X-Name-First: Anna
Author-X-Name-Last: Samarina
Title: Drivers of trust in the ECB during the pandemic
Abstract: 
 Trust in the European Central Bank (ECB) is vital. However, little is known about trust in the ECB during the COVID-19 pandemic. We use the rich pilot microdata from the ECB Consumer Expectations Survey during 2020–2021 on six key euro area countries to shed light on trust in the ECB during the pandemic. Our findings suggest that there is ample room to improve consumers’ trust in the ECB. Personal COVID-19 experiences play a role: respondents who reduced the number of hours worked due to COVID-19 have lower trust in the ECB than those with unchanged working hours. Trust in the ECB varies within countries. It is highest among males and people with a good financial situation. It increases with financial knowledge, education, income, and wealth.
Journal: Applied Economics
Pages: 1454-1476
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097192
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097192
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1454-1476



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097194_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Crina Anina Bejan
Author-X-Name-First: Crina Anina
Author-X-Name-Last: Bejan
Author-Name: Dominic Bucerzan
Author-X-Name-First: Dominic
Author-X-Name-Last: Bucerzan
Author-Name: Mihaela Daciana Crăciun
Author-X-Name-First: Mihaela Daciana
Author-X-Name-Last: Crăciun
Title: Bitcoin price evolution versus energy consumption; trend analysis
Abstract: 
 Digital technology developments shape the behaviour, performances, standards of society, organizations and individuals imposing new ways of payments and new forms of money. In this environment in 2008 was developed a new type of currency, namely Bitcoin. Cryptocurrency, as this new form of money has been generically called, puts pressure on the traditional concept of money. Today, the economic value of cryptocurrencies is attested by their circulation and acceptance by user communities for trade. However, establishing this value raises debates in the literature. The research from this paper investigates and analyses if there is a strong enough connectedness between Bitcoin price evolution and energy consumption tendency (for mining), to influence Bitcoin value. Public data from January 2014 to July 2021 is used. An Artificial Neural Network (ANN) was used to study and predict the tendency of Bitcoin price and energy consumption. A comparison between the forecasting trend and the real trend (the evolution of energy consumption and Bitcoin price) was made. The conducted research starts with a quantitative one and ends with a qualitative one (trends). The obtained results show that qualitatively, there is a good correlation between monthly average values of BTC prices and electricity consumption for mining.
Journal: Applied Economics
Pages: 1497-1511
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097194
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097194
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1497-1511



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097190_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Haoliang Zhu
Author-X-Name-First: Haoliang
Author-X-Name-Last: Zhu
Title: Global value chains, trade liberalization, and productivity: a stochastic frontier analysis of Chinese manufacturing firms
Abstract: 
 This article estimates the total factor productivity (TFP) growth of Chinese manufacturing firms and quantifies how international sourcing and trade liberalization affect TFP growth. To this end, we estimate stochastic frontier production that decomposes TFP growth into technical changes, returns to scale, and technical efficiency changes. Furthermore, we consider two channels through which external factors affect TFP growth: technical change and technical efficiency change components. We measure international sourcing and trade liberalization by foreign value-added shares and input tariffs, respectively. Several novel findings emerge. First, international sourcing and import tariff reduction positively impact TFP growth by improving technical changes and technical efficiency. Second, international sourcing has a negative effect on the technical changes of processing importers, while it has positive effects on the technical change and technical efficiency change of ordinary importers. Third, input tariff reduction has a substantial and positive impact on the technical efficiency change of processing importers and the technical change of ordinary importers.
Journal: Applied Economics
Pages: 1422-1435
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097190
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097190
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1422-1435



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097191_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoling Mei
Author-X-Name-First: Xiaoling
Author-X-Name-Last: Mei
Author-Name: Huanjun Zhu
Author-X-Name-First: Huanjun
Author-X-Name-Last: Zhu
Author-Name: Chongzhu Chen
Author-X-Name-First: Chongzhu
Author-X-Name-Last: Chen
Title: Mean-variance portfolio selection with estimation risk and transaction costs
Abstract: 
 There are many approaches that have been proposed to improve the empirical performance of the Markowitz mean-variance model. Designed to mitigate the impact of parameter uncertainty and estimation error, these approaches have delivered substantially better out-of-sample performance. In this paper, we consider the portfolio optimization problem for a single-period investor facing different types of transaction costs. By reformulating the rebalancing problem into a linear regression framework, we show analytically that considering different transaction costs is equivalent to imposing additional constraints on the portfolio weights, thus providing desired properties such as sparsity and stability in the trading strategy.
Journal: Applied Economics
Pages: 1436-1453
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097191
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097191
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1436-1453



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097189_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Elena Kotyrlo
Author-X-Name-First: Elena
Author-X-Name-Last: Kotyrlo
Title: Back to parents: earnings of young adults and informal care
Abstract: 
 Return migrants are often considered to be disadvantaged in terms of earnings. However, family needs might affect an individual’s migration decision and allocation of his (her) time between formal employment and informal care. The generalized Roy model employed to account for self-selection in migration decisions shows that the losses in earnings of return migrants are overestimated for female young adults when family characteristics, such as the presence of children or parents in need of care, are not accounted for. The study is based on age- and gender-specific samples of individuals born in 1974 and followed between the ages of 25 and 32 years drawn from Swedish longitudinal data. The results suggest that female internal return migrants rely on grandparenting to reconcile their family and working life. In particular, mothers of children under eight years old earn more when they reside close to their parents. The negative self-selection of male return migrants remains after controlling for family characteristics. This likely relates to differences in the labour supply as returns on education do not differ by residential location choice. The estimates do not demonstrate any link between potential informal elder care and a change in the earnings of young adults.
Journal: Applied Economics
Pages: 1407-1421
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097189
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097189
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1407-1421



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jose E. Gomez-Gonzalez
Author-X-Name-First: Jose E.
Author-X-Name-Last: Gomez-Gonzalez
Author-Name: Jorge M. Uribe
Author-X-Name-First: Jorge M.
Author-X-Name-Last: Uribe
Author-Name: Oscar M. Valencia
Author-X-Name-First: Oscar M.
Author-X-Name-Last: Valencia
Title: Risk spillovers between global corporations and Latin American sovereigns: global factors matter
Abstract: 
 We study volatility spillovers between the corporate sector’s and Latin American countries’ CDS. Daily data from 14 October 2006 to 23 August 2021 are employed. Spillovers are computed both for the raw data and for filtered series, which factor out the effect of global common factors on the various CDS series. Results indicate that most spillovers occur within groups. However, considerable spillovers are also registered from LAC sovereigns to corporations and vice versa. Interesting differences are encountered between filtered and unfiltered data. Specifically, spillovers from countries to corporations are overestimated (in about 4.3% points) and spillovers from corporations to sovereigns are underestimated (in about 5.8% points) when unfiltered data is used. This result calls for a revision of results obtained from studies that do not consider the role of global common factors on system spillovers. Like in most related studies, spillovers show considerable time-variation, being larger during times of financial or economic distress. When looking at total system spillovers over time, those corresponding to unfiltered series are always larger than those corresponding to filtered series. The difference between the two time-series is largest in times of distress, indicating that global factors play a major role in times of crises.
Journal: Applied Economics
Pages: 1477-1496
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097193
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097193
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1477-1496

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2098241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Israel Escudero-Castillo
Author-X-Name-First: Israel
Author-X-Name-Last: Escudero-Castillo
Author-Name: Fco. Javier Mato Díaz
Author-X-Name-First: Fco. Javier
Author-X-Name-Last: Mato Díaz
Author-Name: Ana Rodriguez-Alvarez
Author-X-Name-First: Ana
Author-X-Name-Last: Rodriguez-Alvarez
Title: Effects of precarious work on mental health: evidence from Spain
Abstract: 
 Given that a relationship has been established between employment status and psychological well-being, the deepening segmentation of the Spanish labour market may be putting the mental health of part of the population at risk. However, the relationship between work and well-being could be influenced by unobservable subjective characteristics and, consequently, two people with the same job characteristics could be affected differently by precariousness. This research tackles the problem of the unobserved heterogeneity resulting from subjective variables related to work satisfaction. A finite mixed model is applied to analyse, firstly, how jobs characterized by greater instability may affect well-being and, secondly, to study how the way in which well-being is affected could depend on how the person evaluates their job satisfaction. Data from the National Health Survey of Spain have been used to perform the analysis. We conclude that, when compared to short-term temporary contracts, self-employed and atypical situations, the stability of permanent work contracts provides greater well-being if some previous conditions of job satisfaction are met. When these conditions are not met, the protective factor provided by permanent contracts is somehow diluted, and only tenured civil servants show advantages vis-à-vis the rest of work situations.
Journal: Applied Economics
Pages: 1603-1620
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2098241
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2098241
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:14:p:1603-1620



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2098240_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xuhui Peng
Author-X-Name-First: Xuhui
Author-X-Name-Last: Peng
Author-Name: Yi-Chen Lan
Author-X-Name-First: Yi-Chen
Author-X-Name-Last: Lan
Author-Name: Jingduan Li
Author-X-Name-First: Jingduan
Author-X-Name-Last: Li
Author-Name: Hanlu Fan
Author-X-Name-First: Hanlu
Author-X-Name-Last: Fan
Title: Board gender diversity, national culture, and water disclosure of multinational corporations
Abstract: 
 Academic attention on corporate water disclosure and the role of board gender diversity (BGD) in corporate environmental responsibility has increased dramatically. However, the study of the relationship between BGD and corporate water disclosure is lagging, particularly in the influence of national culture on the relation. Therefore, this study investigates the water disclosure of 150 MNCs from China, Japan, the U.K. and the U.S. using content analysis, theoretically discusses and empirically tests the relationship between BGD and MNCs’ water disclosure, and the moderating effects of national culture. The results indicate that (1) BGD positively impacts MNCs’ water disclosure, and (2) the cultural constructs of masculinity and uncertainty avoidance negatively moderate this relationship. These results reveal that female board members’ moral characteristics caused by gender differences are the key to promoting the board’s abilities of stakeholders’ water issue detection. This advantage of female board members could be enhanced or weakened in different national cultures. Our study closes a research gap, strengthens our understanding of the role of BGD in promoting the board’s water-related strategic decision-making, and extends the application of the national cultural dimension in interdisciplinary research in management and social science fields.
Journal: Applied Economics
Pages: 1581-1602
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2098240
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2098240
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:14:p:1581-1602



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097635_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Saejoon Kim
Author-X-Name-First: Saejoon
Author-X-Name-Last: Kim
Title: Factor investing: a unified view
Abstract: 
 A unified view of factor investing is presented. By examining the levels of exposure to a set of factors collectively, we construct enhanced factor portfolios from conventional single-factor portfolios that substantially increase factor risk premia consistently for nearly five decades in the US equity data. Detailed comparison between these and multifactor portfolios is conducted, and we find that a form of the latter delivers superior return performance. In particular, we present the outperformance of the signal-blended multifactor portfolio for various return measures over all factor portfolios considered at a statistical significance level of 1%.
Journal: Applied Economics
Pages: 1567-1580
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097635
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097635
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:14:p:1567-1580



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2098242_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Theodoros Skevas
Author-X-Name-First: Theodoros
Author-X-Name-Last: Skevas
Author-Name: Mykel R. Taylor
Author-X-Name-First: Mykel R.
Author-X-Name-Last: Taylor
Author-Name: Allen M. Featherstone
Author-X-Name-First: Allen M.
Author-X-Name-Last: Featherstone
Title: How different types of government payments and the elimination of direct payments affect farm productivity? Evidence from Kansas crop farms
Abstract: 
 The relationship between total factor productivity (TFP) and different types of government payments is examined using data on Kansas crop farms over the period 2009–2018. Special attention is given to the effect on productivity from the elimination of direct payments in the 2014 Farm Bill. Farm-level TFP is estimated using a variation of the traditional proxy variable approach, assuming the evolution of productivity is not exogenous, but can be influenced by government payments. Results show that alternative types of government payments affect TFP differently. Direct payments were found to have a positive effect on TFP, whereas risk management payments, which replaced direct payments starting in 2015, did not affect TFP significantly. Regarding other types of government payments, only conservation reserve program and state government payments were found to affect TFP (positively and) significantly, but the productivity effect was significantly lower than that of direct payments. Results further show that restricting productivity to be entirely exogenous understates the actual productivity of the sample farms by an average of 8%, implying government payments matter and impact farm productivity.
Journal: Applied Economics
Pages: 1621-1635
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2098242
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2098242
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:14:p:1621-1635



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hakjun Lee
Author-X-Name-First: Hakjun
Author-X-Name-Last: Lee
Author-Name: Shik Heo
Author-X-Name-First: Shik
Author-X-Name-Last: Heo
Title: Does cultural education contribute to higher consumption of the arts? Evidence from South Korea
Abstract: 
 The purpose of this study is to examine the effects of cultural capital on arts consumption. We divide cultural capital into five types – arts education of infancy and childhood, adolescence and adulthood, arts-related volunteer work, and arts-related club – and focused on active and passive acquisition of such capital. We conduct an empirical analysis considering that the dependent variable is zero-inflated. Specifically, we conduct zero-inflated negative binomial regression to analyse the causal effect of cultural capital on arts consumption. In addition, Oaxaca decomposition with zero-inflated negative binomial regression is performed to compare the effectiveness of cultural capital. Our results show that consumption of cultural capital increases consumption of the arts. In particular, the effect of arts education was the highest in adulthood, indicating that voluntary acquisition is effective and the benefits from arts education are durable. Our research could provide insights for government organizations engaged in promotion of arts and inform policymaking.
Journal: Applied Economics
Pages: 1534-1545
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097633
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097633
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:14:p:1534-1545



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Anna Gudrun Ragnarsdottir
Author-X-Name-First: Anna Gudrun
Author-X-Name-Last: Ragnarsdottir
Author-Name: Thorhildur Olafsdottir
Author-X-Name-First: Thorhildur
Author-X-Name-Last: Olafsdottir
Author-Name: Paul McNamee
Author-X-Name-First: Paul
Author-X-Name-Last: McNamee
Author-Name: Tinna Laufey Ásgeirsdóttir
Author-X-Name-First: Tinna Laufey
Author-X-Name-Last: Ásgeirsdóttir
Title: The individual private cost of problematic alcohol use: a compensating income variation approach
Abstract: 
 While the social cost of problematic alcohol use has been examined, limited information exists on the private cost incurred by consumers. Using Icelandic panel data and the compensating income variation (CIV) method we estimate this individual private cost. We examine results using different measures of problematic alcohol use, two non-linear functional forms for income, and two utility proxies. We estimate the yearly individual cost, or CIV, to be 4–62 thousand USD. These estimates are considerably higher if not adjusted for income endogeneity. Results suggest that the CIV method is highly sensitive to model specifications in two areas: (i) The modelling of income; log-transformation contrasted with a piecewise-linear form shows that high-income groups affect full sample CIVs substantially, highlighting differences between mean and median value-estimates. This raises ethical questions on the trade-off between utilitarian policies based on means and largely driven by high-income groups, versus policies guided by median values that benefit most individuals. (ii) The choice of utility proxy; the CIV using happiness is substantially higher than that obtained using life satisfaction. This highlights the need for policy makers to consider whether their objectives should focus on cognitive measures of subjective well-being or affective measures.
Journal: Applied Economics
Pages: 1513-1533
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097632
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097632
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:14:p:1513-1533



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2097634_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shunwei Zhu
Author-X-Name-First: Shunwei
Author-X-Name-Last: Zhu
Author-Name: Hailong Liu
Author-X-Name-First: Hailong
Author-X-Name-Last: Liu
Author-Name: Thomas Boryniec
Author-X-Name-First: Thomas
Author-X-Name-Last: Boryniec
Title: Long-term reversal and value effects: the role of liquidity risk
Abstract: 
 This paper demonstrates that liquidity risk helps explain the return patterns of stocks with high book-to-market ratios and low intangible returns. We document empirical evidence that (1) liquidity shocks, the unexpected variation in liquidity factors that are orthogonal to the firm’s past accounting performance, predict stock returns, (2) stocks with higher book-to-market ratios or lower intangible returns have higher exposure to aggregate capital constraint measures (i.e. these stocks possess higher liquidity risk) and (3) the returns of long-term contrarian strategies based on liquidity shocks, book-to-market ratios and intangible returns are highly correlated and serve as proxies for returns from liquidity provision. Moreover, liquidity-providing returns are stronger in declining markets as well as when the market volatility is high, indicating that liquidity providers are capital-constrained in providing liquidity under such conditions.
Journal: Applied Economics
Pages: 1546-1566
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097634
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097634
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:14:p:1546-1566

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099518_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ling Dai
Author-X-Name-First: Ling
Author-X-Name-Last: Dai
Author-Name: Zuomin Zhang
Author-X-Name-First: Zuomin
Author-X-Name-Last: Zhang
Author-Name: Likui Lin
Author-X-Name-First: Likui
Author-X-Name-Last: Lin
Title: Can government investment expansion benefit everyone: a study with state-owned enterprises in the Chinese context
Abstract: 
 The main difference between China and other major economies is the presence of a large number of state-owned enterprises. Focusing on the Chinese context, we divide firms into state-owned and private enterprises, and households into working and capitalist class; thereafter, we simulate the effects of government investment expansion on income distribution under different financing instruments. We found that when financed by corporate income tax or value-added tax, government investment expansion makes the working class in both types of enterprises better off, but the capitalist class worse off; however, when financed by labour income tax, government investment expansion yields the opposite result. When the expansion is financed by government debt, the real wealth of the working class in state-owned enterprises and the capitalist class increases, but that of the working class in private enterprises decreases. The difference in income distribution outcomes between the working class and capitalist class is due to the differing composition of their wealth, and the difference in income distribution outcomes among working class is because the enterprises for which they work perform differently in undertaking government investment projects and obtaining loans from the financial market.
Journal: Applied Economics
Pages: 1663-1681
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099518
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099518
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:15:p:1663-1681



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099524_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fangbin Qiao
Author-X-Name-First: Fangbin
Author-X-Name-Last: Qiao
Title: The impact of mechanization on crop production in China
Abstract: 
 The rapid development of mechanization has been well reported, but its impact on China’s agricultural production remains unclear. This study first uses a theoretical model to analyse the impact of mechanization on sown areas of different crops. The results show that mechanization has a positive impact on grain crops and a negative impact on non-grain crops. Then using nationally representative provincial-level panel data, the empirical analyses confirm these results. Thus, the sown areas of cotton, oil and sugar crops will be reduced by more than 20% within five years. Consequently, China is expected to depend on international markets to meet the domestic demand for cotton, oil and sugar in the future. Even though mechanization has a positive impact on the sown areas of grain crops, a reduction in the diversity of grain production poses a new threat to the stability of China’s grain production and food security.
Journal: Applied Economics
Pages: 1728-1741
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099524
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099524
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:15:p:1728-1741



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099521_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Patricia Moreno-Mencía
Author-X-Name-First: Patricia
Author-X-Name-Last: Moreno-Mencía
Author-Name: David Cantarero-Prieto
Author-X-Name-First: David
Author-X-Name-Last: Cantarero-Prieto
Author-Name: Juan Rodriguez-Poo
Author-X-Name-First: Juan
Author-X-Name-Last: Rodriguez-Poo
Title: Semiparametric estimation of a sample selection model with a binary endogenous regressor: the effect of chronicity in labour supply
Abstract: 
 The aim of this paper is to investigate the effect of chronicity in labour supply and the participation equation in a flexible framework. We analyse a semiparametric model for data including problems of sample selection and endogeneity, because a regressor is correlated with the disturbance term. One approach is to specify a simultaneous equation model where a dummy endogenous variable accounting for chronicity is included in the structural and selection equation. We propose a consistent estimator of the structural parameters robust to misspecification. The endogeneity and the selection are assumed to be nonparametric and the conditional distribution of the errors is left unspecified. Using a control function approach, the resulting estimator is obtained through a new pairwise differencing transformation. In addition to its empirical performance, the asymptotic properties are established. Our empirical findings confirm the idea that having a chronic illness has a negative effect on income, accounting for an approximately $$32\% $$32% decrease in expected income, which is close to the finding of Currie and Madrian (1999).
Journal: Applied Economics
Pages: 1682-1699
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099521
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099521
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:15:p:1682-1699



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2098243_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Danny Contractor
Author-X-Name-First: Danny
Author-X-Name-Last: Contractor
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Indrit Hoxha
Author-X-Name-First: Indrit
Author-X-Name-Last: Hoxha
Title: Market reaction to macroeconomic anouncements: green vs conventional bonds
Abstract: 
 There has been an increased interest in literature to examine the risk and returns between green and conventional bonds during the last decade. However, the existing literature is silent regarding investigating green bonds and their reactions to regional and global shocks. We attempt to close this gap by gathering green and conventional bonds data issued by the same firms. Using data from 262 firms that issue both sets of bonds and trade in the same market, we are able to control/eliminate for firm-specific factors that can impact the bond spreads. Upon introducing US and EU macroeconomic announcements and economic uncertainty, we find that the green bonds are more resilient from specific shocks, when compared to conventional bonds. We further expand our study to systematically assess the impact of the Covid-19 pandemic on both bonds. Our comprehensive findings suggest an increase in green bonds’ uptake post-Covid-19 pandemic, and its significant evolvement compared to pre-Covid-19 proves green bonds popularity. Our result shows greater resilience of green bonds from specific Covid-19 shocks and uncertainties.
Journal: Applied Economics
Pages: 1637-1662
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2098243
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2098243
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:15:p:1637-1662



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2101611_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rupamanjari Sinha Ray
Author-X-Name-First: Rupamanjari
Author-X-Name-Last: Sinha Ray
Author-Name: Sandeep Goel
Author-X-Name-First: Sandeep
Author-X-Name-Last: Goel
Title: Impact of ESG score on financial performance of Indian firms: static and dynamic panel regression analyses
Abstract: 
 The study attempts to empirically investigate the impact of ESG score on the financial variables that may affect the performance of firms in the Indian context; SEBI’s recent mandate on ESG reporting by the listed entities being the point of departure for the present discourse. A representative sample of 48 Indian firms having ESG scores under BSE-100 index is used in the analysis. The study period comprises the years 2011–2019. Static and dynamic panel regression analyses are conducted. The financial performance variables incorporated in this paper include ROA, ROE, firm size, market capitalization, PBDIT, Tobin’s Q and share price. It is demonstrated that ESG score influences these variables, however with time lags. The distinctive contribution of the current endeavour lies in establishing a long-term positive association between ESG disclosure and annual average share price for the listed firms in a developing economy like India. The results are implicative of the fact that ESG score is an emerging indicator for conceiving future financial performance and risk mitigation strategies, and therefore, of considerable importance from policy perspective.
Journal: Applied Economics
Pages: 1742-1755
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2101611
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101611
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:15:p:1742-1755



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099523_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mauro Caselli
Author-X-Name-First: Mauro
Author-X-Name-Last: Caselli
Author-Name: Jasmine Mondolo
Author-X-Name-First: Jasmine
Author-X-Name-Last: Mondolo
Author-Name: Stefano Schiavo
Author-X-Name-First: Stefano
Author-X-Name-Last: Schiavo
Title: Labour market power and the quest for an optimal minimum wage: evidence from Italy
Abstract: 
 This study investigates the recent trends in labour market power in Italy and assesses the impact of a potential minimum wage using a large sample of manufacturing firms. We show that, despite an average shift of labour market power from companies to workers, monopsony power is still widespread, especially in some sectors and regions. The introduction of a minimum wage would be beneficial to workers and the economy as it reduces the monopsony power of highly productive firms paying low wages; however, it may also have a negative impact, since firms with low wages and low labour productivity may react by reducing the number of their employees or even by exiting the market. Finally, we find that an optimal minimum wage, which minimizes the negative effect and maximizes the positive effect for the economy, ranges between 8.25 and 9.65 euro per hour.
Journal: Applied Economics
Pages: 1713-1727
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099523
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099523
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:15:p:1713-1727



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099522_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paul Lombardi
Author-X-Name-First: Paul
Author-X-Name-Last: Lombardi
Author-Name: Amer Mriziq
Author-X-Name-First: Amer
Author-X-Name-Last: Mriziq
Title: Saving lives one bale at a time: cotton production’s connection to lynchings in the U.S. South during the early Twentieth Century
Abstract: 
 The extralegal lynching of innocent individuals from discriminated groups remains a dark, lasting mark on the United States’ history. Following the conclusion of the Civil War, former slaves and their descendants were frequent targets for this form of violence. A significant existing literature finds various contributing factors to the pattern of violence. However, the current paper is the first to document a relationship between the weather and the lynching of African Americans in the U.S. South during the early twentieth century. Within affected communities, we find heavy May rains reduced cotton yields which raises the probability of a lynching during the subsequent year.
Journal: Applied Economics
Pages: 1700-1712
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099522
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099522
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:15:p:1700-1712

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099525_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paula Pereda
Author-X-Name-First: Paula
Author-X-Name-Last: Pereda
Author-Name: Maria Dolores Montoya Diaz
Author-X-Name-First: Maria Dolores
Author-X-Name-Last: Montoya Diaz
Author-Name: Fabiana Rocha
Author-X-Name-First: Fabiana
Author-X-Name-Last: Rocha
Author-Name: Liz Matsunaga
Author-X-Name-First: Liz
Author-X-Name-Last: Matsunaga
Author-Name: Bruna Pugialli Borges
Author-X-Name-First: Bruna Pugialli
Author-X-Name-Last: Borges
Author-Name: Jesus Mena-Chalco
Author-X-Name-First: Jesus
Author-X-Name-Last: Mena-Chalco
Author-Name: Renata Narita
Author-X-Name-First: Renata
Author-X-Name-Last: Narita
Author-Name: Clara Brenck
Author-X-Name-First: Clara
Author-X-Name-Last: Brenck
Title: Are women less persistent? Evidence from submissions to a nationwide meeting of economics
Abstract: 
 Female under-representation in high-profile career positions has relevant impacts on firms’ outcomes, research topics, and public policies. In the academic profession, women’s participation decreases as they evolve in their careers. To understand the lack of women in economics in Brazilian academia, we investigate the decision to submit papers to the largest conference in the country (Brazilian Meeting of Economics, or ANPEC Meetings), an important achievement in the profession. We explore a novel panel dataset of researchers and match them with web-scraped data of their résumés to test gender differences in the probability of submitting an article one year after having a paper (same or new) rejected in the previous year. Our findings suggest that women desist 2.9% points more than men when facing rejection. We also find evidence that younger women give up more and that the quality of the undergraduate program relates to the gender gap in the likelihood of desisting. Finally, we argue that more competitive women may self-select into higher-quality institutions.
Journal: Applied Economics
Pages: 1757-1768
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099525
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099525
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:16:p:1757-1768



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099801_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lucia Ferrone
Author-X-Name-First: Lucia
Author-X-Name-Last: Ferrone
Author-Name: Gianna Claudia Giannelli
Author-X-Name-First: Gianna Claudia
Author-X-Name-Last: Giannelli
Title: Internal migration, children’s schooling and gender gaps in education
Abstract: 
 In many sub-Saharan African countries, a large number of people migrate internally due to economic, demographic and political factors. We ask whether household mobility affects child educational outcomes and in what direction. Because girls and boys face different challenges in achieving education, and families often underinvest in girls’ human capital, we focus on gender differentials. We study the case of Uganda, a country where universal basic education and gender equality are still complicated goals. We use the National Panel Survey of 2005, 2009, 2010 and 2011 to develop fixed effects models of the relationship between mobility and children’s educational outcomes: school delay and attendance. We find that moving with the family during primary or lower secondary school decreases delay in schooling and increases school attendance for boys, while we do not find any significant effect for girls. We argue that our results confirm pro-male preferences of families, where girls do not benefit equally from the opportunities offered by internal migration. Expanding girls’ opportunities, as well as providing adequate services, are crucial steps in achieving gender equality in education.
Journal: Applied Economics
Pages: 1807-1829
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099801
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099801
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:16:p:1807-1829



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dahai Fu
Author-X-Name-First: Dahai
Author-X-Name-Last: Fu
Author-Name: Yue Sheng
Author-X-Name-First: Yue
Author-X-Name-Last: Sheng
Author-Name: Xiaocong Xu
Author-X-Name-First: Xiaocong
Author-X-Name-Last: Xu
Title: The gains from import variety: how much does demand matter
Abstract: 
 This paper highlights the impact of variable demand on the evaluation of welfare gains from import variety. We use a nested demand structure and construct a model to estimate the gains from import variety, which allows us to relax the assumption of time-invariant demand in previous studies. Our modified approach shows that welfare gains from import variety depends on the demand shifts, in which the gains could be either positive or negative. In particular, China’ s gains from imported varieties between 1995 and 2010 are underestimated 0.94% of 2010 GDP when assuming constant demand. The sources of variety gains also change significantly under the framework of variable demand.
Journal: Applied Economics
Pages: 1830-1844
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099802
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099802
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:16:p:1830-1844



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099803_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Volker Seiler
Author-X-Name-First: Volker
Author-X-Name-Last: Seiler
Author-Name: Bernard Michael Gilroy
Author-X-Name-First: Bernard Michael
Author-X-Name-Last: Gilroy
Author-Name: Christian Peitz
Author-X-Name-First: Christian
Author-X-Name-Last: Peitz
Author-Name: Nico Stöckmann
Author-X-Name-First: Nico
Author-X-Name-Last: Stöckmann
Title: 40 years of economic reform - the case of Pudong new area open economic zone in Shanghai
Abstract: 
 This paper investigates the impact of special economic zones (SEZs) on economic growth. We use the Pudong New Area Open Economic Zone in Shanghai for our comparative case study and find this policy tool to have added up to CNY 7,166 to GDP per capita compared to a synthetic counterfactual without such a policy. Given that different reform policies were undertaken in different provinces including Shanghai itself even before the launch of the Pudong New Area Open Economic Zone, our findings might be considered conservative.
Journal: Applied Economics
Pages: 1845-1858
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099803
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099803
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:16:p:1845-1858



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099526_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Haerin Shim
Author-X-Name-First: Haerin
Author-X-Name-Last: Shim
Author-Name: Jeong Eun Koo
Author-X-Name-First: Jeong Eun
Author-X-Name-Last: Koo
Author-Name: Tae Sup Shim
Author-X-Name-First: Tae Sup
Author-X-Name-Last: Shim
Title: The effect of implementation of the Stewardship Code on nonprofessional investors’ judgment and decision-making
Abstract: 
 Since 2010, the Stewardship Code (SC) or similar regulations have been introduced in many countries in order to enhance the quality of institutional investors’ engagement and to improve long-term firm value. Although the effectiveness of the SC has been the subject of ongoing controversy in prior anecdotal or legal studies, there has been little empirical evidence regarding the effects of these policies due to the relatively recent adoption of such codes worldwide. Accordingly, the purpose of this article is to investigate how capital market participants perceive and evaluate the implementation of the SC. Specifically, we examine how SC implementation affects nonprofessional investors’ judgment and decision-making on an investee firm. Based on the results of an experiment with nonprofessional investors, we show that the implementation of the SC may negatively impact nonprofessional investors’ assessments of the firm, contrary to the intended purpose of SC adoption. This study provides timely implications for the future operation and development of the stewardship policies recently adopted in many countries.
Journal: Applied Economics
Pages: 1769-1789
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099526
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099526
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:16:p:1769-1789



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhanguo Zhu
Author-X-Name-First: Zhanguo
Author-X-Name-Last: Zhu
Author-Name: Xiaozhou Ma
Author-X-Name-First: Xiaozhou
Author-X-Name-Last: Ma
Author-Name: Xu Tian
Author-X-Name-First: Xu
Author-X-Name-Last: Tian
Author-Name: Tong Zhang
Author-X-Name-First: Tong
Author-X-Name-Last: Zhang
Title: The value of food products from mixed crop-livestock systems: environmental benefits and regional environmental carrying capacity
Abstract: 
 Food products from mixed crop-livestock systems is a market-based solution to reduce environmental impacts of livestock worldwide. However, widespread promotion of mixed systems of recycling agriculture depends on consumers’ acceptance of its food products. In this paper, we examine consumers’ preferences and willingness to pay (WTP) for several attributes of pork products, and develop consumer classes based on preferences. Using a choice experiment among 893 Chinese consumers, our results show that consumers are willing to pay a premium for pork with mixed crop-livestock systems claim. In addition, a positive WTP is also detected for different environmental carrying capacity, environmental benefits and quality certifications. We use latent class analysis to identify heterogeneous consumers into five classes: namely balanced thinking, price sensitive, quality preferred, environmental benefits conscious and ecology conscious consumers. Further policies and interventions aimed at promoting the market-oriented operation of mixed crop-livestock systems of recycling agriculture, based on regional environmental carrying capacity, different dimensions of environmental benefits and quality improvement of food products, will be effective.
Journal: Applied Economics
Pages: 1859-1875
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099804
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099804
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:16:p:1859-1875



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099800_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammad Ryan Sanjaya
Author-X-Name-First: Muhammad Ryan
Author-X-Name-Last: Sanjaya
Author-Name: Swee Hoon Chuah
Author-X-Name-First: Swee Hoon
Author-X-Name-Last: Chuah
Author-Name: Simon Feeny
Author-X-Name-First: Simon
Author-X-Name-Last: Feeny
Author-Name: Robert Hoffmann
Author-X-Name-First: Robert
Author-X-Name-Last: Hoffmann
Title: The Impact of Cultural Heterogeneity on Violence in Indonesia: Fractionalisation versus polarization
Abstract: 
 The determinants of large-scale conflict have been examined extensively in the academic literature. The factors contributing to everyday violence have received less attention despite this smaller-scale conflict having a high human and economic cost. We analyse a dataset at the level of 495 Indonesian districts to estimate the determinants of non-domestic, small-scale violence prevalent in this nation. We focus on the role of pronounced cultural heterogeneity that characterizes Indonesia and contribute to the literature by empirically testing whether established conflict theory holds for smaller scale violence data in the case of Indonesia. Ethnic polarization (rather than fractionalization) is the main driver of conflict intensity, suggesting that district-level conflicts are commonly over public goods. Cultural heterogeneity has a curvilinear effect on conflict. It increases the intensity of violence up to a point, after which the level decreases. Overall, our results offer some support for the Esteban and Ray model of conflict.
Journal: Applied Economics
Pages: 1790-1806
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099800
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099800
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:16:p:1790-1806

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2099805_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Linlang Zhang
Author-X-Name-First: Linlang
Author-X-Name-Last: Zhang
Author-Name: Han Zhang
Author-X-Name-First: Han
Author-X-Name-Last: Zhang
Author-Name: Xiongyuan Wang
Author-X-Name-First: Xiongyuan
Author-X-Name-Last: Wang
Title: Underwriter ratings and risk-taking of IPO firms: evidence from China
Abstract: 
 Unlike the existing literature, which focuses on the underwriter reputation, this paper examines the effect of underwriters on the risks of IPO (initial public offering) firms from the perspective of the ability to control risks. Using the underwriter rating by CSRC (China Securities Regulatory Commission), we find that the underwriter rating provides incremental information over the underwriter reputation and mainly reflects the ability of the underwriter to control risks. Consistent with this hypothesis, we document a negative relationship between the underwriter rating and the earnings volatility of firms after an IPO. Our results remain qualitatively similar after a series of robustness tests. Additional analysis suggests that an underwriter with a higher ability to control risks, proxied by the risk index of the underwriter, can significantly lower firms’ risks. Moreover, we find that a highly rated underwriter can reduce stock return volatility, discretionary accruals, the potential for a decline in earnings, and penalties by the CSRC. This study enriches the literature on how underwriter plays an essential role in IPOs from the ability to control risks.
Journal: Applied Economics
Pages: 1877-1890
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099805
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099805
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:17:p:1877-1890



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2100869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wei-Chih Chen
Author-X-Name-First: Wei-Chih
Author-X-Name-Last: Chen
Author-Name: Xiaohua Bao
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Bao
Title: Technical barriers to trade and China’s exports: firm-level evidence
Abstract: 
 This paper studies the trade-restriction and trade-promotion effects that technical barriers to trade (TBTs) have on export performances of Chinese firms over the period 2001–2006. Different from tariffs and most traditional non-tariff measures, TBTs can impose both positive and negative impacts on exports. On the one hand, TBTs increase the compliance costs and have the trade-restriction effect. On the other hand, TBTs improve product quality and mitigate uncertainty, which enhances demand and promotes trade. We investigate how TBTs influence the extensive and intensive margins of a firm’s exports and how the impact varies with the size, productivity, and ownership of a firm. Specifically, we look into a firm’s entry and exit decisions, export value, unit price, and quantity. The estimated results show that TBTs decrease both the extensive and intensive margins of small firms, and they improve the export performances of large firms. The finding indicates that while small firms that cannot meet the technical standards will leave their markets, large firms will stay in their markets and expand their export volumes. The trade effects of TBTs also change by characteristics of the importing country and sector.
Journal: Applied Economics
Pages: 1919-1938
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100869
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100869
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:17:p:1919-1938



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2100872_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yongguang Zhou
Author-X-Name-First: Yongguang
Author-X-Name-Last: Zhou
Author-Name: Yiming Wang
Author-X-Name-First: Yiming
Author-X-Name-Last: Wang
Author-Name: Zhennan Gao
Author-X-Name-First: Zhennan
Author-X-Name-Last: Gao
Title: Effects of market liquidity on price dynamics in a heterogeneous belief model
Abstract: 
 To understand the effect of liquidity on asset pricing, this study constructs a boundedly rational asset pricing model, introducing market liquidity and heterogeneous beliefs. Based on our model, we conduct empirical tests using the S&P 500 index from 1991 to 2021 and the CSI 500 index from 2007 to 2021. We find that market liquidity significantly influences investors’ expectations and belief switching. When market liquidity is scarce, fundamentalists in both markets expect the price to converge more quickly to its fundamental value, whereas chartists perceive that the price deviates from its fundamental value less rapidly. Lack of liquidity mitigates the investors’ original switching strategy, resulting in positive feedback as a net effect. Moreover, the S&P 500 index is efficient, whereas the CSI 500 index is slightly undervalued in the long run. Both markets exhibit large fluctuations and inefficiency during short periods such as the 2008 financial crisis and COVID-19 pandemic. As such, safeguards should be implemented against sudden shocks and the resulting price deviation and market inefficiency.
Journal: Applied Economics
Pages: 1972-1989
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100872
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100872
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:17:p:1972-1989



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2100049_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tracey Broome
Author-X-Name-First: Tracey
Author-X-Name-Last: Broome
Author-Name: Winston Ricardo Moore
Author-X-Name-First: Winston Ricardo
Author-X-Name-Last: Moore
Author-Name: Philmore Alleyne
Author-X-Name-First: Philmore
Author-X-Name-Last: Alleyne
Title: R&D participation and firm performance in the Caribbean
Abstract: 
 Despite the benefits of R&D and the incentives available for such investments in most countries, the Caribbean has one of the lowest rates of R&D investment in the world. One potential reason for this is the financing constraints encountered by most Caribbean firms. Using a Cobb-Douglas production function augmented with innovation input and output variables and data from the LACES and PROTEqIN databases of the Enterprise Surveys and Compete Caribbean respectively, this research examines the extent to which past R&D experience and current innovative activities enhance the performance of manufacturing and service firms. The findings suggest that prior R&D participation contributes significantly to increased productivity levels of manufacturing firms. On the other hand, skillset is very important to the productivity of service enterprises. Furthermore, past R&D involvement increases the probability of innovation, specifically goods/service innovation and marketing improvements.
Journal: Applied Economics
Pages: 1891-1907
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100049
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100049
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:17:p:1891-1907



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2100870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alex Chernoff
Author-X-Name-First: Alex
Author-X-Name-Last: Chernoff
Author-Name: Casey Warman
Author-X-Name-First: Casey
Author-X-Name-Last: Warman
Title: COVID-19 and implications for automation
Abstract: 
 COVID-19 may accelerate the automation of jobs as employers invest in technology to safeguard against pandemics. We identify occupations that have high automation potential and also exhibit a high risk of viral infection. We examine regional variation in terms of which U.S. local labour markets are most at risk. Next, we outline the differential impacts COVID-19 may have on different demographic groups. We find that the highest-risk occupations in the U.S. are those held by females with mid- to low-wage and education levels. Using comparable data for 25 other countries, we also find that women in this demographic are at the highest risk internationally.
Journal: Applied Economics
Pages: 1939-1957
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100870
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100870
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:17:p:1939-1957



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2100871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Howard J. Wall
Author-X-Name-First: Howard J.
Author-X-Name-Last: Wall
Title: Sex and the business cycle
Abstract: 
 This paper reconsiders the differences between the sexes in the depths, lengths, timing, and employment effects of recessions in the United States. I find that, prior to the mid-1980s, female employment was in recession less frequently than male employment, but that the opposite has been true since then. Also, monthly employment growth forgone because of recession was roughly the same for women and men prior to the mid 1980s, but was substantially greater for men afterwards. Accounting for the sex-specific timing of recessions, as well as for forgone employment growth, (1) the negative effects of recessions on both female and male employment are much larger than is usually found, (2) male employment is hit relatively harder by recessions, and (3) the difference between the sexes in the employment effects of recession is much smaller than the previous literature indicates.
Journal: Applied Economics
Pages: 1958-1971
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100871
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100871
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:17:p:1958-1971



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2100868_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bruno Damásio
Author-X-Name-First: Bruno
Author-X-Name-Last: Damásio
Author-Name: Sandro Mendonça
Author-X-Name-First: Sandro
Author-X-Name-Last: Mendonça
Title: Leader-follower dynamics in real historical time: a Markovian test of non-linear causality between sail and steam (co-)development
Abstract: 
 The most dramatic changes in modern shipping occurred with the application of new industrial-age technologies to oceanic transportation. In metal-hulled and engine-powered trading platforms, industrial-age steamers (especially tramps and liners) lead to marked increases in the average tonnage of a typical vessel crossing the seas of an expanding global economy. Some of the most important developments had to do with the substitution of traditional wind-driven ships by successive cohorts of vessels exploiting the comparative advantages of mechanization. In this paper, we deploy a set of both established and less-orthodox quantitative approaches to historical commercial shipping time-series so as to model the (complex) relationship between steam and sail performance. We find that, indeed, there is evidence of leader-follower dynamics during the later part of 19th century. This process of ‘creative destruction’ was non-linear.
Journal: Applied Economics
Pages: 1908-1918
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100868
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100868
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:17:p:1908-1918

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102135_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sunghun Lim
Author-X-Name-First: Sunghun
Author-X-Name-Last: Lim
Author-Name: SongYi Paik
Author-X-Name-First: SongYi
Author-X-Name-Last: Paik
Title: The impact of immigration enforcement on agricultural employment: evidence from the US E-Verify policy
Abstract: 
 Immigration enforcement often brings unintended consequences in domestic labor markets. Using the universe of administrative immigration data from 2005 to 2019, we uncover evidence that the E-Verify, an employment verification mandate, exacerbates the ongoing farm labor shortage in the US. Relying on the newly developed staggered difference-in-differences method, we find that the E-Verify policy restricts the employment of undocumented farmworkers. Our results indicate that domestic workers are not being replaced with declined undocumented workers wherein the inflow of the H-2A visa migrants still remains. Our finding advances a more nuanced picture of the US labor shortage driven by the E-Verify policy. This paper contributes to the rising policy debate on reforming nationwide E-Verify enactment and the H-2A visa program in the US.
Journal: Applied Economics
Pages: 2223-2259
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102135
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102135
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2223-2259



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102126_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shuimu Ju
Author-X-Name-First: Shuimu
Author-X-Name-Last: Ju
Author-Name: Honglei Tang
Author-X-Name-First: Honglei
Author-X-Name-Last: Tang
Title: Competition and operating efficiency of manufacturing companies in E-commerce environment: empirical evidence from Chinese garment companies
Abstract: 
 E-commerce technology has been paid more and more attention by manufacturing companies. The wide application of e-commerce has enhanced the competitive advantage of companies, but it also intensified the competition among them. Competition has many impacts on companies, among which the impact on operating efficiency is particularly concerned. This paper provided in-depth analysis using a two-stage methodology to analyse the specific impact of competition on the operating efficiency of garment companies (with B2C mode) in e-commerce environment. Firstly, the game cross-efficiency (GCE) model and related indicators were used to evaluate the operating efficiency of selected companies from 2011 to 2018. The results showed that compared to the traditional cross-efficiency (TCE), the scores of GCE considering competition were improved. This indicated that although e-commerce technology intensified the competition among Chinese garment companies, competition improved their operating efficiency. Moreover, the GCE model theoretically remedied some shortcomings of traditional DEA models. Secondly, the panel data model was used to analyse the specific impact of competition on operating efficiency. The results indicated that competition significantly increased pure technical efficiency, but it was not beneficial to scale efficiency. Based on these findings, some policy implications were proposed.
Journal: Applied Economics
Pages: 2113-2128
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102126
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102126
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2113-2128



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102130_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yexin Zhou
Author-X-Name-First: Yexin
Author-X-Name-Last: Zhou
Author-Name: Bo Yuan
Author-X-Name-First: Bo
Author-X-Name-Last: Yuan
Author-Name: Bin Liang
Author-X-Name-First: Bin
Author-X-Name-Last: Liang
Author-Name: Qi Cui
Author-X-Name-First: Qi
Author-X-Name-Last: Cui
Author-Name: Shengling Zhang
Author-X-Name-First: Shengling
Author-X-Name-Last: Zhang
Author-Name: Juan He
Author-X-Name-First: Juan
Author-X-Name-Last: He
Title: How does perceived environmental pollution affect migration interests: adapt or flee?
Abstract: 
 We utilized the China Genuine Progress Indicator Survey, a unique national survey data from China, to explore the effects of individuals’ perceived pollution on their migration interests. Results show a significantly positive effect of perceived environmental pollution on an individual’s migration interests. A higher level of perceived pollution increases the possibility of migration by 6.5%. Meanwhile, adaptive behaviours such as using facemasks, air cleaners, or water cleaners could not be alternatives to migration. In particular, well-educated, young, high-income groups, as well as those engaged in professional and technical work, are more affected by perceptions about environmental pollution. They are likely to show higher levels of perceived pollution, which could possibly lead to the brain drain effect. Moreover, people’s environmental attitudes have moderating effects on the migration interests triggered by pollution. Our focus on potential population outflow can bear new implications for the formulation of forward-looking environmental policies.
Journal: Applied Economics
Pages: 2146-2166
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102130
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102130
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2146-2166



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Haifang Xiong
Author-X-Name-First: Haifang
Author-X-Name-Last: Xiong
Author-Name: Tianming Liu
Author-X-Name-First: Tianming
Author-X-Name-Last: Liu
Author-Name: Zhiqiang Wang
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Wang
Title: Financial effect of long-term policy equity injection: evidence from special construction funds in China
Abstract: 
 Chinese two policy banks implemented long-term equity injections for some listed companies through special construction funds from 2015 to 2016. We use the PSM-DID method to examine the effect of this equity injection on corporate financing decisions. We find that the equity injection has the financial effect of broadening corporate financing channels and optimizing debt structure, which raises the speed of capital structure adjustment and encourages corporate investment. Financing cost, financing channel, and corporate governance mechanisms can explain the financing effect of equity injection policy, showing that the signal channel plays a vital role in the equity injection policy. Companies with weak financing capabilities, such as private, small scale, weak profitability, central and western region companies, benefit more from the equity injection policy. Corporate governance capabilities significantly affect policy effectiveness. Our conclusions are robust after satisfying the assumptions and other factors that may interfere with the empirical results. We confirm the role of equity injection in reducing corporate financing costs, stabilizing investment, and encouraging long-term, high-quality development of corporations.
Journal: Applied Economics
Pages: 2129-2145
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102128
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102128
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2129-2145



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102134_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chen Liang
Author-X-Name-First: Chen
Author-X-Name-Last: Liang
Author-Name: Shuang-Jin Wang
Author-X-Name-First: Shuang-Jin
Author-X-Name-Last: Wang
Author-Name: Maggie Foley
Author-X-Name-First: Maggie
Author-X-Name-Last: Foley
Author-Name: Guo-Hua Ma
Author-X-Name-First: Guo-Hua
Author-X-Name-Last: Ma
Title: The path selection on improving the quality of environmental information disclosure – configuration analysis based on fsQCA
Abstract: 
 The environmental information disclosure system is regarded as an important tool to supervise and manage the environmental behavior of public companies in China. The corporate environmental governance mechanism could be utilized to improve the quality of corporate environmental information disclosure. Based on the 248 public firms in the chemical industry in China, this paper uses the NCA and fsQCA approach to study the joint roles of environmental regulations and other internal and external factors on the quality of environmental information disclosure. The results show that enterprises can strengthen environmental information disclosure through the combinations of multiple factors, rather than focusing on a single factor. The government should establish an effective environmental management system to strengthen environmental supervision and enhance environment enforcement on public companies.
Journal: Applied Economics
Pages: 2207-2222
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102134
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102134
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2207-2222



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102131_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hyunchul Kim
Author-X-Name-First: Hyunchul
Author-X-Name-Last: Kim
Author-Name: Jungwon Yeo
Author-X-Name-First: Jungwon
Author-X-Name-Last: Yeo
Title: The effect of product variety in multiproduct retail pricing: the case of supermarkets
Abstract: 
 The search literature offers several explanations as to how a multiproduct retailer’s offering of a larger variety may affect consumers’ search behaviour and hence prices. Among them are (1) higher sales to be generated when lower prices discourage consumers’ further search; and (2) more pricing power due to improved consumer expectations about consumer-product match valuations. The former concerns independent categories and derives a negative relationship while the latter concerns substitutes within categories and derives a positive relationship. To examine the effect of a retailer’s variety offerings on the price levels using scanner data from the supermarket industry, we devise metrics of assortment width and depth, where the former measures variety in category (more independent) offerings and the latter, variety in brand (more substitutable) offerings within categories. We find that the effect of an additional offering to each dimension of assortment decreases in the other dimension, leading the effect of assortment width to be negative while the effect of the depth to be positive for the majority of the stores used in our analysis—a result that reconciles the theories that purport to draw opposite conclusions.
Journal: Applied Economics
Pages: 2167-2188
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102131
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102131
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2167-2188



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102133_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lei Zhang
Author-X-Name-First: Lei
Author-X-Name-Last: Zhang
Author-Name: Senlin Wang
Author-X-Name-First: Senlin
Author-X-Name-Last: Wang
Author-Name: Zibin Liu
Author-X-Name-First: Zibin
Author-X-Name-Last: Liu
Author-Name: Yukun Sun
Author-X-Name-First: Yukun
Author-X-Name-Last: Sun
Author-Name: Xiang Zhao
Author-X-Name-First: Xiang
Author-X-Name-Last: Zhao
Title: Does urbanization intensify land finance? Evidence from the county-to-district policy in China
Abstract: 
 Land finance is one of the economic phenomena in the process of urbanization in China. Studying the impact of urbanization on land finance may help us to better formulate urbanization policies, especially for developing countries. We use the microdata of urban land transactions in China from 2005 to 2016 and adopt a differences-in-differences method based on the county-to-district policy to investigate the impact of urbanization on land finance. We find that the urbanization reform has significantly increased the local government’s reliance on land finance. We also find that the policy has a larger impact on land finance for undeveloped cities. Land finance provides a critical source of funds for the urbanization led by local governments, but with the further promotion of urbanization, the reliance on land finance by local governments will show a gradual downward trend. The mechanism test finds that urbanization promotes land finance dependence by increasing the transfer revenue and areas of existing construction land and infrastructure construction investment. The study of the impact of China’s urbanization on land finance can serve as a reference for other developing countries’ urbanization, and can further provide practical guidance for the promotion of China’s new-type urbanization.
Journal: Applied Economics
Pages: 2189-2206
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102133
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102133
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2189-2206

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2188169_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ting Yang
Author-X-Name-First: Ting
Author-X-Name-Last: Yang
Author-Name: Chengke Zhu
Author-X-Name-First: Chengke
Author-X-Name-Last: Zhu
Title: High-speed railway and shadow banking: evidence from finance leases
Abstract: 
 This paper empirically investigates the effect of improved transportation infrastructure on finance leases, a representative form of China’s shadow banking sector, using a sample of Chinese listed companies. We find robust evidence that there is a significant decline in firms’ finance leases after the opening of the high-speed railway (HSR). Furthermore, HSR brings more favourable contract terms of leasing, including larger financing size, longer maturity, and lower cost. The heterogeneity analysis shows that HSR mainly reduces the costly nonbank-affiliated leases, and finance leases are reduced primarily in state-owned enterprises.
Journal: Applied Economics
Pages: 2596-2606
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2023.2188169
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2188169
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:22:p:2596-2606



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103505_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ly Nguyen
Author-X-Name-First: Ly
Author-X-Name-Last: Nguyen
Author-Name: Andrew Schmitz
Author-X-Name-First: Andrew
Author-X-Name-Last: Schmitz
Title: The welfare impacts of Covid-19 on the U.S. salmon sector
Abstract: 
 This research estimates the effects of COVID-19 on the U.S. supply and demand for salmon over two distinct periods. The first period reflects the first year (2020) since the COVID-19 outbreak, and the second period covers the outbreak’s second year (2021). The effects of COVID-19 on salmon prices, domestic production, and imports are analysed through graphics, elasticities, and spatial welfare economics derived from the equilibrium displacement model of the U.S. salmon market. In the first year, COVID-19 caused a reduction in domestic demand. As a result, U.S. salmon producers and consumers lost $302 million. Consumer loss accounts for 87% of this value. In 2021, however, domestic consumption recovered, with a positive effect of $447 million on consumers, outweighing the negative impact from 2020. Together, the domestic producers and consumers gained approximately $512 million. The net market gain (a combination of the first- and second-year effects) was $210 million. These results are subject to the magnitudes of change in demand and supply due to COVID-19 and transportation costs.
Journal: Applied Economics
Pages: 2579-2595
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103505
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103505
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:22:p:2579-2595



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103084_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Ayesha Sayed
Author-X-Name-First: Ayesha
Author-X-Name-Last: Sayed
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Influence of unconventional monetary policy on agricultural commodities futures: network connectedness and dynamic spillovers of returns and volatility
Abstract: 
 Our research examines connectedness landscape and the dynamic spillovers of volatility and returns in the network comprising eleven agricultural commodities and US shadow short rate in a quality of inflation indicator, observed in monetary policymaking. We use daily data from November 2000 to May 2021. We document monetary policy as a net transmitter of spillover for both return and volatility of agricultural commodities. We find significant volatility connectedness among agricultural commodities. The connectedness is shown to be of a time-varying nature, exhibiting considerable increases during periods of market turmoil. The results of this paper provide relevant insights into the interrelations of US monetary policy and agricultural commodity prices, being, hence, potentially useful for commodity investors, brokers and dealers, as well as for market regulators designing policy solutions for financial stability enhancements.
Journal: Applied Economics
Pages: 2521-2535
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103084
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103084
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:22:p:2521-2535



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103504_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: Prospects for attaining the multidimensional poverty target of SDG 1.2: evidence from the most recent multiyear harmonized data for 75 developing countries
Abstract: 
 This paper uses recent multiyear harmonized data on multidimensional poverty for 75 developing countries to judge prospects for attaining SDG Target 1.2 of reducing multidimensional poverty by one-half. Exponential rate of decline in multidimensional poverty headcount is calculated and extrapolated to the SDG period 2015–2030 to see whether the rate of decline would lower multidimensional poverty headcount by 50% over the 15-year period. There are 43 countries in which the observed rate of decline is large enough to reduce the headcount by half in 15 years. These countries had a total population of 3.9 billion and multidimensional poverty headcount of 580.7 million. There are 24 countries, with multidimensional poverty headcount of 549.9 million, where rate of reduction is not large enough to lower MDP headcount by one-half in 15 years. There are 8 countries that may or may not make the target. The international community needs to focus on the 24 countries that are likely to miss the target even in the pre-COVID scenario studied in this research. When post-COVID data become available in a few years, it should be possible to reassess the situation and to judge the effect of COVID on prospects for reaching the SDG Target 1.2.
Journal: Applied Economics
Pages: 2567-2578
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103504
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103504
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:22:p:2567-2578



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103083_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Svetlana Drljača Kanazir
Author-X-Name-First: Svetlana Drljača
Author-X-Name-Last: Kanazir
Title: Credit risk cyclicality in Serbian banking sector
Abstract: 
 In literature there are different research results regarding the impact of borrower’s size on cyclicality of credit risk. The aim of this research is to determine whether the credit risk cyclicality increases with the size of the borrower, using data from Serbian banking sector. The research presented herein is one of the first for developing countries with this subject and where credit risk was approximated by the default rate. Empirical analysis of the time series of loan default rates, as dependent variable, and macroeconomic factors, as explanatory variable, is based on the panel error correction model. Panel units are risk segments. Amount of annual revenue is key criteria for granulation borrowers within key four risk segments (retail, micro, SME and large corporate) that corresponds to its size. In multi-factor model, research results confirm that there is long term relationship between macroeconomic factors and loan default rate in Serbian banking sector in all risk segments. However, in model where GDP is explanatory variable, in the segment of small- and medium-sized enterprises, the adjustment coefficient is not statistically significant. It can be inferred that the credit risk of the SMEs segment is the most resistant to changes in the business cycle phases.
Journal: Applied Economics
Pages: 2505-2520
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103083
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103083
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:22:p:2505-2520



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103503_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Danyan Wen
Author-X-Name-First: Danyan
Author-X-Name-Last: Wen
Author-Name: Mengxi He
Author-X-Name-First: Mengxi
Author-X-Name-Last: He
Author-Name: Yudong Wang
Author-X-Name-First: Yudong
Author-X-Name-Last: Wang
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Title: Forecasting stock market realized volatility: the role of global terrorist attacks
Abstract: 
 In this study, we provide the predictive linkage between global terrorist attacks and stock market volatility. We propose the predictive model by extending the prevailing heterogeneous autoregressive model for realized volatility (HAR-RV) with global terrorism and denote it as HAR-RV-GT. According to the Diebold – Mariano test and the model confidence set, we consistently find the superior forecasting performance delivered by the HAR-RV-GT model. For comprehensive empirical results, we extend the key finding to various settings including the consideration of popular jump and leverage effects, the use of more types of forecasting models, and the inclusion of long-horizon global terrorist attacks as well as the domestic terrorist attacks in the US. Additionally, the substantial economic gains based on a mean-variance investor confirm the valuable forecasting role of terrorist attacks. Our results are robust to a wide range of checks.
Journal: Applied Economics
Pages: 2551-2566
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103503
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103503
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:22:p:2551-2566



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103502_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Heidi Kaila
Author-X-Name-First: Heidi
Author-X-Name-Last: Kaila
Title: Ethnic digital divide? Evidence on mobile phone adoption
Abstract: 
 Between 2006 and 2014, Vietnam experienced a true information technology revolution. In rural areas, mobile phone ownership increased from 18% to 89%. I use a panel dataset from this period to study the ‘digital divide’ between the ethnic majority group and ethnic minorities. I find that underprivileged ethnic minorities are lag behind in phone adoption. These differences are fully explained by standard factors of demand and by education level, that is, I do not find unobservable barriers in adoption. Analysis using spatial data on digital mobile network coverage reveals that infrastructure is also not a barrier to adoption, even in remote regions of Vietnam. Results are robust to alternative model specifications.
Journal: Applied Economics
Pages: 2536-2550
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103502
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103502
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:22:p:2536-2550

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2101610_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mai-Shou Li
Author-X-Name-First: Mai-Shou
Author-X-Name-Last: Li
Author-Name: Xing Gao
Author-X-Name-First: Xing
Author-X-Name-Last: Gao
Title: Difference in returns to schooling between formal and informal employment in China
Abstract: 
 Based on the 2015 China Health and Nutrition Survey (CHNS), the difference in returns to schooling between formal and informal employment was empirically analysed using the IV-Heckman model. It is found in the research that there are significant differences in the average income and level of educational human capital between formal and informal employment, and that returns to schooling of formal employment is much higher than that of informal employment. In addition, the propensity score matching (PSM) method was used to study the returns to schooling of high school and university of the two employment groups. The results indicate that returns to schooling of high school and university of the formal employment are significantly higher than those of the informal employment group, while the difference in returns to schooling of university is greater than that of high school.
Journal: Applied Economics
Pages: 2098-2111
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101610
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101610
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:18:p:2098-2111



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2100873_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaolin Sun
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Sun
Author-Name: Jun Ma
Author-X-Name-First: Jun
Author-X-Name-Last: Ma
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Hailong Liu
Author-X-Name-First: Hailong
Author-X-Name-Last: Liu
Title: The dynamic impacts of skewness on the risk–return relationship in the dry bulk spot freight rates and FFAs
Abstract: 
 This paper examines the dynamic impacts of skewness on the risk–return relationship among dry bulk spot freight rates and the corresponding forward freight agreements (FFA) markets. We use swift Skewed Generalized T distribution under the GARCH-in-mean (GARCH-M) model to capture the properties of time-varying skewness, pure risk, and volatility spillovers among the dry bulk vessels. Our findings clarify that skewness price, as an endogenous variable, which is opposite to the pure risk price, illustrates the conflicting nexus of risk and return in theory and empirical study. Additionally, the mutual spillover effects among all the examined markets reveal that to what extent the returns represent compensation for risk, and to what extent the interaction of dry bulk spot and its FFAs affects the pricing. Our results provide market participants understanding the real diversity of risk–return relationships of shipping markets regarding risk aversion and investments.
Journal: Applied Economics
Pages: 1991-2004
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100873
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100873
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:18:p:1991-2004



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2101608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alex Backwell
Author-X-Name-First: Alex
Author-X-Name-Last: Backwell
Author-Name: Ralph Rudd
Author-X-Name-First: Ralph
Author-X-Name-Last: Rudd
Title: Throwing away a billion yuan, real or rand: the cost of sub-optimal hedging in high interest-rate environments
Abstract: 
 Interest-rate volatility is known to be positively level dependent, i.e. to correlate positively with interest-rate levels. However, recent research has provided compelling evidence that as interest rates rise, the amount of level dependence decreases. We advance this line of research by investigating the amount of volatility level dependence in an emerging market with high interest rates, and find no evidence for the positive level dependence implied by the popular log-normal forward-LIBOR market model. This has important consequences for the hedging of interest-rate derivatives: when hedging caps, using the log-normal market model can be worse than not hedging at all and it is significantly outperformed by its normally distributed counterpart, which exhibits no level dependence.
Journal: Applied Economics
Pages: 2060-2069
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101608
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101608
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:18:p:2060-2069



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2101607_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mattia Guerini
Author-X-Name-First: Mattia
Author-X-Name-Last: Guerini
Author-Name: Duc Thi Luu
Author-X-Name-First: Duc Thi
Author-X-Name-Last: Luu
Author-Name: Mauro Napoletano
Author-X-Name-First: Mauro
Author-X-Name-Last: Napoletano
Title: Synchronization patterns in the European Union
Abstract: 
 In this paper, we quantify business cycles synchronization in the European Union by combining Principal Component Analysis (PCA) with a Random Matrix Theory (RMT) model. We employ a balanced panel of industrial production indexes over the 2000–2017 period and we track the evolution of the European synchronization, as measured by the largest and statistically significant principal component. Using the information contained in the eigenvector associated to it, we then identify the dynamics of synchronization clusters. Our results suggest that the degree of synchronization has increased since the introduction of the common currency and until the Great Recession, but decreased thereafter. In addition, our results point to the evolution of synchronization clusters over the past decades. Whereas western and eastern countries had divergent business cycles at the beginning of the 21st century, they have become more synchronized over the analysed period. However, since the dawn of the European sovereign debt crisis, the synchronization divide has become more apparent between northern and southern economies.
Journal: Applied Economics
Pages: 2038-2059
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101607
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101607
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:18:p:2038-2059



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2101606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dong-Hyeon Kim
Author-X-Name-First: Dong-Hyeon
Author-X-Name-Last: Kim
Author-Name: Ting-Cih Chen
Author-X-Name-First: Ting-Cih
Author-X-Name-Last: Chen
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Title: Bank competition and unemployment
Abstract: 
 Much effort has been devoted to exploring the effect of bank competition on economic growth and stability. This paper shifts the focus towards the unemployment outcome. Using the Boone and Lerner indicators as well as bank concentration ratios, it finds, in a panel of developing and developed countries, that unemployment declines with bank competition up to a certain level of bank competition, above which it rises with bank competition. The impact seems to operate through investment and self-employment. The data thus suggest that there exists an optimal bank competition level that minimizes unemployment and too less and too much competition in a banking sector is detrimental to unemployment as it impedes capital accumulation and entrepreneurship development.
Journal: Applied Economics
Pages: 2024-2037
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101606
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101606
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:18:p:2024-2037



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2101605_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Linjie Wang
Author-X-Name-First: Linjie
Author-X-Name-Last: Wang
Author-Name: Jean-Paul Chavas
Author-X-Name-First: Jean-Paul
Author-X-Name-Last: Chavas
Author-Name: Jian Li
Author-X-Name-First: Jian
Author-X-Name-Last: Li
Title: The dynamic impacts of disease outbreak on vertical and spatial markets: the case of African Swine Fever in China
Abstract: 
 This paper investigates the dynamic effects of a disease outbreak on vertical and spatial markets, with an application to the African Swine Fever (ASF) and its impact on Chinese hog markets. Relying on a flexible representation of vertical and spatial price dynamics, we investigate how ASF affected the pork cycle and price transmission across markets. We find that the ASF outbreak had larger long-term effects on spatial prices than on vertical prices, likely reflecting inter-regional trade bans imposed by the government. Our analysis indicates that ASF contributed to shortening the period of the pork cycle. We also provide evidence that the ASF outbreak affected cointegration relations across markets, especially among regional markets.
Journal: Applied Economics
Pages: 2005-2023
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101605
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101605
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:18:p:2005-2023



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2101609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Teng Ma
Author-X-Name-First: Teng
Author-X-Name-Last: Ma
Author-Name: Yimeng Du
Author-X-Name-First: Yimeng
Author-X-Name-Last: Du
Author-Name: Tao Xu
Author-X-Name-First: Tao
Author-X-Name-Last: Xu
Author-Name: Wang Chen
Author-X-Name-First: Wang
Author-X-Name-Last: Chen
Title: Cross-regional effects of renewable power generation on the electricity market: an empirical study on Japan's electricity spot market
Abstract: 
 We examined the indirect effects of renewable power generated in Tohoku on the electricity spot market in Tokyo, through the channel of cross-regional interconnection. By adopting a two-step regression analysis framework, we investigated how the renewable power generated in Tohoku affects Tokyo’s spot price and market volatility. Our results indicate that the electricity spot market is affected not only by within-regional renewable power generation but also by cross-regional transmitted renewable power generation through interconnection. The relatively higher price reduction effect of transmitted power can be attributed to higher price elasticity under a tight supply-demand balance. Our results confirm the cross-regional price stabilization effect of renewable power generation in Tohoku. We attribute the negative effect on realized volatility of Tokyo to the relatively stabler renewable electricity supply from Tohoku. Furthermore, we find that renewable power producers – especially solar power producers – are not incentivized by the fixed-price feed-in tariff to meet electricity demand during peak hours.
Journal: Applied Economics
Pages: 2070-2097
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101609
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101609
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:18:p:2070-2097

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2187036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Senhua Huang
Author-X-Name-First: Senhua
Author-X-Name-Last: Huang
Author-Name: Feng Han
Author-X-Name-First: Feng
Author-X-Name-Last: Han
Title: Can the agglomeration of producer services boost China’s ‘going out’?
Abstract: 
 As China has been encouraging enterprises to ‘go global’ and actively promoting the optimization of industrial structure, it is important to discuss the impact of its outward foreign direct investment (OFDI) considering producer service industry agglomeration. For analysing the mechanism by which the agglomeration of producer services affects China’s OFDI, this study uses inter-provincial panel data from 2004 to 2019 and a spatial Durbin model to empirically test the impact of producer service agglomeration on OFDI. We show that the agglomeration of producer services significantly promotes OFDI in a particular region through economies of scale and enterprise productivity improvement. And it also significantly promotes OFDI in its neighbouring regions. The effect of producer service agglomeration on OFDI shows regional heterogeneity. Namely, the agglomeration of producer services in the eastern region promotes the OFDI in this region and it has not had a significant impact on the OFDI in neighbouring regions. Further, the agglomeration of producer services in the central and western regions does not have a significant effect on their OFDI and that of neighbouring regions.
Journal: Applied Economics
Pages: 2709-2724
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2023.2187036
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2187036
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:23:p:2709-2724



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2104801_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mukhriz Izraf Azman Aziz
Author-X-Name-First: Mukhriz Izraf Azman
Author-X-Name-Last: Aziz
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Dang Khoa Tran
Author-X-Name-First: Dang Khoa
Author-X-Name-Last: Tran
Title: Modelling dynamic connectedness between oil price shocks and exchange rates in ASEAN+3 economies
Abstract: 
 This study analyses the impact of the oil price shocks (demand, supply, and risk) on the exchange rates of a unique group of developed and emerging economies that comprise the ASEAN +3 countries. We combine a novel approach to decomposing the oil price shocks at a higher (daily) frequency with the dynamic network connected approach to analyse the connectedness of the oil shocks and exchange rates from January 2006 to July 2020, enabling us to cover various phases of the business cycle in these economies. Our results show that demand and risk shocks are the main contributors to the connectedness. We document that the Singapore dollar and the Malaysian Ringgit are the main transmitters of shocks in the ASEAN +3 group, whereas the role of the Chinese yuan and the Japanese yen is rather limited despite the bigger size of these two economies. Our results have important policy implications for investors, regulators, and policymakers.
Journal: Applied Economics
Pages: 2676-2693
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2104801
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2104801
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:23:p:2676-2693



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103509_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qilong Cao
Author-X-Name-First: Qilong
Author-X-Name-Last: Cao
Author-Name: Jinglei Li
Author-X-Name-First: Jinglei
Author-X-Name-Last: Li
Author-Name: Hongru Zhang
Author-X-Name-First: Hongru
Author-X-Name-Last: Zhang
Title: Asymmetric effects of bank market power on liquid creation: a panel quantile regression approach
Abstract: 
 This study explores the relationship between market power and bank liquidity creation using panel quantile regression methods. Based on annual data from 187 banks between 2007 and 2019, we reveal that the effect of market power on bank liquidity creation varies in different parts of the liquidity creation distribution. Quantile regression results indicate no statistically significant relationship between market power and low-liquidity creation, and the relationship is significantly positive for middle-liquidity creation. However, there is a significant negative association between market power and high-liquidity creation. Multiple robustness analyses confirm our results. Our research contributes to the literature by providing empirical evidence that the market power effect is not homogeneous and presenting an interpretation of the debate in prior studies.
Journal: Applied Economics
Pages: 2660-2675
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103509
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103509
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:23:p:2660-2675



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103507_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alessandro Cusimano
Author-X-Name-First: Alessandro
Author-X-Name-Last: Cusimano
Author-Name: Chiara Paola Donegani
Author-X-Name-First: Chiara Paola
Author-X-Name-Last: Donegani
Author-Name: Ian Jackson
Author-X-Name-First: Ian
Author-X-Name-Last: Jackson
Author-Name: Stephen McKay
Author-X-Name-First: Stephen
Author-X-Name-Last: McKay
Title: The rationality of rainy day savers: objective and subjective determinants of individual savings in Britain
Abstract: 
 Using the largest and richest data on savings in Great Britain, six waves of the Wealth and Assets Survey from the Office for National Statistics, we compare standard life cycle models of saving with models using more ‘subjective’ measures, and the added dimension of longitudinal data. Whilst the life cycle model provides a benchmark, regular criticisms remain, particularly people’s propensity to continue saving at older ages. Data on attitudes attenuate that issue, and panel data largely eliminate it. Our results confirm empirically, for Great Britain, the importance of some of the objective determinants of savings included in life cycle theory. When we look at more subjective ones, we show that other factors, including self-rated health and financial pressure, provide an enhanced direct explanation of the propensity to save. Individuals who regard themselves as ‘rainy day savers’ tended to save more, irrespective of their demographic or financial circumstances. Results are robust to different specifications.
Journal: Applied Economics
Pages: 2624-2644
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103507
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103507
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:23:p:2624-2644



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103506_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yun Xiang
Author-X-Name-First: Yun
Author-X-Name-Last: Xiang
Author-Name: Yonghong Zhao
Author-X-Name-First: Yonghong
Author-X-Name-Last: Zhao
Author-Name: Shijie Deng
Author-X-Name-First: Shijie
Author-X-Name-Last: Deng
Title: Pairs trading with fractional Ornstein–Uhlenbeck spread model
Abstract: 
 This paper proposes to model the spreads associated with financial asset prices by fractional Ornstein – Uhlenbeck (fOU) processes and constructs a pairs trading strategy based on the fOU spread model. It is shown that the Hurst parameter of the fOU process contains substantial information about the anti-persistence, or mean-reversion, characteristic of the spread over time. Consequently, the Hurst parameter is a key measure of mean-reversion for selecting the preferred candidates to trade. Adaptive methods for setting the optimal trading thresholds are proposed as well. The enhanced performance of the proposed trading model is demonstrated by comparison with existing models through simulation studies as well as an empirical analysis using high-frequency Chinese equity market data.
Journal: Applied Economics
Pages: 2607-2623
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103506
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103506
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:23:p:2607-2623



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2104802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hans Seerar Westerberg
Author-X-Name-First: Hans Seerar
Author-X-Name-Last: Westerberg
Title: Are payroll tax cuts absorbed by insiders? Evidence from the Swedish retail industry
Abstract: 
 Payroll tax cuts are considered inefficient for increasing employment among outsiders because insiders will use their power to bargain for higher wages at the expense of outsiders’ possibility of becoming employed. The extent to which insiders or outsiders reap the rewards of payroll tax cuts is a matter of debate, and previous literature has largely focused on the employment effects of outsiders. Using wage statistics of employees in the Swedish retail sector, we investigate the effects of a youth payroll tax cut in 2007 on insiders’ wage earnings and the number of hours worked. In line with earlier studies, the results show that the payroll tax cut increased insiders’ total wage earnings. However, only 21% of the increase in wage earnings resulted from higher bargained wages. 57% of the wage increase corresponds to a higher intensive margin of employment, and the rest was attributed to the number of hours worked by insiders with a higher hourly wage rate. Thus, there is little to suggest that insiders can absorb large amounts of payroll tax cuts in the form of higher bargained wages, even when a small number of workers hold the most bargaining power.
Journal: Applied Economics
Pages: 2694-2708
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2104802
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2104802
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:23:p:2694-2708



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103508_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hua-Sheng Song
Author-X-Name-First: Hua-Sheng
Author-X-Name-Last: Song
Author-Name: Xue-Qian Zheng
Author-X-Name-First: Xue-Qian
Author-X-Name-Last: Zheng
Title: Multi-product exporters in US–China trade war
Abstract: 
 This study explores empirically how Chinese multi-product firms adjust their exports in response to the U.S. tariff escalations during the US–China trade war, using firm-product-level customs trade data from China. We find strong evidence for a new phenomenon we call the within-firm cross-product chilling effect, whereby an additional tariff targeting some of the firm’s products sold in the destination market is associated with reduced sales of its other untargeted products in that market. The comparison between firm-product-level and product-level analysis suggests that ignoring the within-firm chilling effect would result in a severe underestimation of the tariff effects. Moreover, the chilling effect is more prominent for products that are more important for a firm’s overall sales to the U.S. and that are highly reliant on the U.S. market. We also observe a ‘complete tariff pass-through’ phenomenon at firm-product level, which complements the product-level evidence in previous related studies.
Journal: Applied Economics
Pages: 2645-2659
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103508
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103508
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:23:p:2645-2659

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102569_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chia-Cheng Ho
Author-X-Name-First: Chia-Cheng
Author-X-Name-Last: Ho
Author-Name: Pei-Hsuan Lee
Author-X-Name-First: Pei-Hsuan
Author-X-Name-Last: Lee
Author-Name: Pei-Su Tsai
Author-X-Name-First: Pei-Su
Author-X-Name-Last: Tsai
Title: Competing hypotheses on the Samuelson effect in futures markets
Abstract: 
 Using data of 12 commodity futures traded on three major futures exchanges in U.S., we find that about 55% of the agricultural futures contracts exhibit the Samuelson effect, about 30% for energy futures contracts, but only about 20% for metal and financial futures contracts. The proposed approach also enables us to take the unprecedented step of directly comparing explanatory power of the state variable hypothesis and the mean reversion hypothesis over the Samuelson effect. The result overall suggests that the mean reversion hypothesis can better explain the Samuelson effect.
Journal: Applied Economics
Pages: 2261-2272
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102569
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102569
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2261-2272



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186363_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kedi Wang
Author-X-Name-First: Kedi
Author-X-Name-Last: Wang
Author-Name: Chen Wu
Author-X-Name-First: Chen
Author-X-Name-Last: Wu
Title: Directors’ and officers’ liability insurance and corporate misconduct: Evidence from China
Abstract: 
 This study examines whether directors’ and officers’ liability insurance (D&O insurance) plays a governance role in the Chinese capital market. We hypothesize and find that D&O insurance restrains corporate misconduct and that this phenomenon is much more significant in state-owned enterprises (SOEs) than in non-state-owned enterprises (non-SOEs). We think purchasing of D&O insurance can import supervisors to mitigate agency costs caused by owner absence. When agency costs are high, SOEs with D&O insurance experience less corporate misconduct. Our study also finds that when the agency problem caused by owner absence is more serious in SOEs, the role of D&O insurance in corporate governance becomes increasingly important.
Journal: Applied Economics
Pages: 2349-2365
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2023.2186363
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186363
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2349-2365



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102571_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Didier Laussel
Author-X-Name-First: Didier
Author-X-Name-Last: Laussel
Title: Do firms always benefit from the presence of active customers?
Abstract: 
 We study price personalization in a two period duopoly with horizontally differentiated products. In the second period, a firm has collected detailed information on its old customers, using it to engage in price personalization. Customers, when returning to buy, may choose to incur a cost in order to access the standard offer of their previous provider in addition to its personalized offer and the standard offer of its rival. The analysis confirms that firms’ second period profits are boosted when consumers are active in this sense (being equal to perfect price discrimination ones when initial market hares do not differ too much) but it reveals that this advantage is dissipated and possibly over-dissipated by the resulting fierce first-period competition for the market. Two-period aggregate profits are smaller with active customers provided the consumers are naive and/or the firms patient enough. Consumers’ access to both personalized and standard firms’ offers which benefit the oligopolists in mature markets may plausibly hurt them in emergent ones. The equilibrium is shown not to depend on the level of the cost as long as it is below some critical value.
Journal: Applied Economics
Pages: 2292-2307
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102571
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102571
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2292-2307



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102572_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Arti Omar
Author-X-Name-First: Arti
Author-X-Name-Last: Omar
Author-Name: P. Krishna Prasanna
Author-X-Name-First: P. Krishna
Author-X-Name-Last: Prasanna
Title: In search of default risk predictors in emerging Asia
Abstract: 
 The study analyses the potential idiosyncratic factors and their pull and push effects on firm-level default risk using 540 listed and traded Asian firms during the period of 2010–2019. The lucrative returns and investment opportunities in Asian markets invites attention for potential research in this domain. Default risk is derived from the Merton model after adjusting for emerging market vulnerabilities. Using fixed-effect panel data regression modelling, we found that higher solvency and operating efficiency are the key pull factors that keep the firms away from default. In the long run, expansion potential and sustainability are key factors that pull the firms out of default. Conversely, a higher level of expansion potential, idiosyncratic volatility and size-effects push low-grade firms towards default despite having a higher level of operating efficiency. We conclude that low-grade firms must therefore keep a close eye on idiosyncratic factors in order to avoid default.
Journal: Applied Economics
Pages: 2308-2322
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102572
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102572
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2308-2322



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102570_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xinyu Wu
Author-X-Name-First: Xinyu
Author-X-Name-Last: Wu
Author-Name: Michelle Xia
Author-X-Name-First: Michelle
Author-X-Name-Last: Xia
Author-Name: Xindan Li
Author-X-Name-First: Xindan
Author-X-Name-Last: Li
Title: Modelling and forecasting volatility with high-frequency and VIX information: a component realized EGARCH model with VIX
Abstract: 
 This paper studies the joint use of high-frequency and VIX information to model and forecast volatility. Our framework relies on an extension of the realized EGARCH (REGARCH) model, namely the component REGARCH model with VIX (hereafter REGARCH(C)-VIX). The REGARCH(C)-VIX model facilitates exploitation of the high-frequency and VIX information through the inclusion of realized measure and VIX for modelling and forecasting volatility. Moreover, the model features a component volatility structure, which has the ability to capture the long memory volatility. An empirical investigation with the S&P 500 index shows that the REGARCH(C)-VIX model outperforms a variety of competing models in both empirical fit and out-of-sample volatility forecasting. Our findings provide strong evidence for including the high-frequency and VIX information as well as the component volatility structure to model and forecast volatility.
Journal: Applied Economics
Pages: 2273-2291
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102570
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102570
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2273-2291



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102574_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joachim Schleich
Author-X-Name-First: Joachim
Author-X-Name-Last: Schleich
Author-Name: Johannes Schuler
Author-X-Name-First: Johannes
Author-X-Name-Last: Schuler
Author-Name: Matthias Pfaff
Author-X-Name-First: Matthias
Author-X-Name-Last: Pfaff
Author-Name: Regine Frank
Author-X-Name-First: Regine
Author-X-Name-Last: Frank
Title: Do green electricity tariffs increase household electricity consumption?
Abstract: 
 In this paper we investigate whether households change electricity consumption after they switch to a green electricity tariff. Using metered data of household electricity consumption from a large provider of green electricity in Germany, our quasi-experimental analysis finds that household switching to a green tariff leads to a non-monetary renewable rebound effect of around 7.7%. Further, our findings imply that this renewable rebound effect is persistent over at least four years. These findings are observationally consistent with moral licencing effects which induce households to permanently change their habitual behaviours and/or to acquire additional electricity-consuming technologies. Thus, failure to account for a renewable rebound in policy evaluation may lead to systematically underestimate the costs of achieving energy and climate targets.
Journal: Applied Economics
Pages: 2337-2348
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102574
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102574
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2337-2348



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102573_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: EnLu Jiang
Author-X-Name-First: EnLu
Author-X-Name-Last: Jiang
Author-Name: SungMan Yoon
Author-X-Name-First: SungMan
Author-X-Name-Last: Yoon
Author-Name: JungHwa Suh
Author-X-Name-First: JungHwa
Author-X-Name-Last: Suh
Title: Corporate Tax Rate Cut on the Cost Behavior of High−tech Companies: The Case of China
Abstract: 
 This study aims to analyse whether there is a cost stickiness phenomenon in which Chinese companies recognize costs early in the years immediately preceding the tax rate cut (hereinafter TRC) in order to minimize tax burden, and to investigate whether high-tech companies with large TRCs have a higher level than general companies. The analysis results can be summarized as follows: First, there is a phenomenon of cost stickiness in Chinese companies in the year immediately before the TRC. Second, before the 2008 TRC in China, the level of cost stickiness of high-tech companies was not statistically higher than that of general companies. The results of this study provide the following implications that Chinese companies use cost as an incentive to minimize their tax burden. Companies can use appropriate surplus resources as a buffer against environmental changes and actively utilize inefficient resource allocation to promote innovative R&D and improve corporate performance.
Journal: Applied Economics
Pages: 2323-2336
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102573
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102573
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2323-2336

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103082_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Doha Kim
Author-X-Name-First: Doha
Author-X-Name-Last: Kim
Author-Name: Jesun Yeon
Author-X-Name-First: Jesun
Author-X-Name-Last: Yeon
Author-Name: Joo Hee Kim
Author-X-Name-First: Joo Hee
Author-X-Name-Last: Kim
Author-Name: Minwoo Kim
Author-X-Name-First: Minwoo
Author-X-Name-Last: Kim
Author-Name: Yeosol Song
Author-X-Name-First: Yeosol
Author-X-Name-Last: Song
Author-Name: Daeho Lee
Author-X-Name-First: Daeho
Author-X-Name-Last: Lee
Title: Different effects of working hour reduction on labor-intensive and knowledge-intensive industries in the era of artificial intelligence: a meta-frontier approach
Abstract: 
 Working hours have been discussed for over 150 years from a variety of perspectives such as worker health, corporate productivity, and job market stability. Despite extensive research in working hour reduction, there is limited evidence on the effect of hours worked by industry characteristics. This study examined the relationship between technical efficiency and working hours. For this, 514 Korean companies were divided into labour-intensive and knowledge-intensive industries, and changes in technical efficiency in each industry were investigated after implementing a working hour reduction policy. The efficiency of the labour-intensive industry improved after a reduction of working hours, whereas that of the knowledge-intensive industry decreased. These results imply that working hours should vary by industry. This study empirically illustrates the effect of reducing working hours and suggests practical guidelines for each country and company to increase technical efficiency by industry.
Journal: Applied Economics
Pages: 2493-2504
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103082
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103082
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:21:p:2493-2504



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103081_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Vasilios Kanellopoulos
Author-X-Name-First: Vasilios
Author-X-Name-Last: Kanellopoulos
Title: The effect of localized social capital on new firm formation at the regional level: a spatial lag explanatory (SLX) application
Abstract: 
 This study examines the effects of localized social capital on new firm formation rates in Greek regions. It uses a path-dependent conceptual framework and spatial econometric techniques to further explain the importance of localized social capital effects on new firm formation rates at the regional level. The IV/2SLS time effects econometric results suggest that the basic components of social capital related to social networks, and social norms have positive and significant effects on new firm formation in a regional context. The impact of social trust is positive and insignificant while, in some cases, it turns to positive and significant. By contrast, the effect of institutional trust is always negative and significant. In addition, the application of a spatial lag explanatory model (SLX) reveals that the basic components of social capital, such as social networks, social trust, and social norms that go to three and five more neighbouring regions have an insignificant influence on new firm formation rates at the regional level. Therefore, the positive social capital effects on new firm formation in a regional context produced in this study appear to be localized remaining within regions.
Journal: Applied Economics
Pages: 2477-2492
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103081
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103081
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:21:p:2477-2492



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103079_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tony Cavoli
Author-X-Name-First: Tony
Author-X-Name-Last: Cavoli
Author-Name: Sasidaran Gopalan
Author-X-Name-First: Sasidaran
Author-X-Name-Last: Gopalan
Author-Name: Ramkishen S. Rajan
Author-X-Name-First: Ramkishen S.
Author-X-Name-Last: Rajan
Title: Is Exchange Rate Centred Monetary Policy Asymmetric? Empirical Evidence from Singapore
Abstract: 
 The effectiveness of an exchange rate based monetary policy rule for Singapore given the highly open nature of the economy has been empirically well documented in the literature. However, what is somewhat less recognized is that monetary policy in Singapore has historically been conducted in an asymmetric manner where there is willingness to allow for greater appreciation of the nominal effective exchange rate (NEER) during boom periods to curb inflation but not to implement a policy of depreciation during a downturn, i.e. a strong Singapore dollar (SSD) policy. We contribute to the literature by being one of the first to test the empirical validity of a SSD policy. We do so by estimating a Taylor style monetary policy rule (MPR) for Singapore with NEER as the main instrument of policy using monthly data for 2000 to 2019. Our empirical findings suggest that Singapore’s MPR appears to react asymmetrically to inflation and output above a particular threshold but is predominantly concerned with inflation in the policy rule, offering evidence of a policy position consistent with SSD in that it allows for disproportionately higher NEER in boom periods.
Journal: Applied Economics
Pages: 2438-2454
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103079
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103079
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:21:p:2438-2454



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2103080_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Changyang Liu
Author-X-Name-First: Changyang
Author-X-Name-Last: Liu
Author-Name: Tian Yue
Author-X-Name-First: Tian
Author-X-Name-Last: Yue
Author-Name: Yugang Yin
Author-X-Name-First: Yugang
Author-X-Name-Last: Yin
Title: Does a firm’s geographic feature matter for stock returns? Evidence from the Chinese A-share market
Abstract: 
 This study reveals a new stock return predictability that relates to firms’ geographic features in the Chinese A-share market. Using a text-based measure of the degree of localness to capture the economic ties between firms and their provinces, we find that low-localized firms are slow to incorporate local information into stock prices. Specifically, there is a significant lead-lag effect in stock returns between high- and low-localized firms in the same region, and a portfolio that exploits this pattern can generate a monthly alpha of about 1%. This effect cannot be explained by geographic or industry return momentum, investors’ inattention, and limits to arbitrage. We find that this return predictability is mainly driven by investors’ limited information-processing capacity, and the evidence of predictability is stronger among low-localized firms with highly complicated business structures.
Journal: Applied Economics
Pages: 2455-2476
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103080
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103080
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:21:p:2455-2476



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102576_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ana Gamarra Rondinel
Author-X-Name-First: Ana
Author-X-Name-Last: Gamarra Rondinel
Author-Name: María Arrazola
Author-X-Name-First: María
Author-X-Name-Last: Arrazola
Author-Name: José Félix Sanz-Sanz
Author-X-Name-First: José Félix
Author-X-Name-Last: Sanz-Sanz
Title: The elasticity of taxable income of low-income earners: bunching evidence from Spain
Abstract: 
 This paper estimates the elasticity of taxable income (ETI) for Spain. Using the bunching approach and administrative tax data from 2008 to 2017, we find evidence of bunching at the first tax kink (ETI = 0.7) and missing mass around the second tax kink (ETI = 0.4). Even though we detect heterogeneity in responses depending on taxpayers’ personal and family circumstances, bunching and missing mass are mostly related to labour income. The main mechanism of response for bunching is associated with the use of certain deductions and allowances, while missing mass is driven by the phase-out region of a targeted deduction for labour income.
Journal: Applied Economics
Pages: 2389-2412
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2102576
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102576
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:21:p:2389-2412



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102577_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Zhenjun Li
Author-X-Name-First: Zhenjun
Author-X-Name-Last: Li
Author-Name: Chen Ma
Author-X-Name-First: Chen
Author-X-Name-Last: Ma
Title: Public governance and corporate innovation: evidence from a quasi-natural event in China
Abstract: 
 Using a unique quasi-natural event, i.e. gangdom and evil forces (hereafter, GEs) elimination in China, we investigate the relationship between the public governance proxied by GEs elimination and corporate innovation based on the data of Chinese listed firms from 2013 to 2021. The results show that the GEs elimination leads to a 0.39% increase in corporate innovation investment. Quantitatively, the increase is approximately equivalent to 4.42 million yuan for a firm of median innovation investment. Furthermore, we find that the GEs elimination increases corporate innovation through two possible channels: relieving financing constraints and intensifying market competition. In addition, we also reveal that the effects of GEs elimination on corporate innovation are stronger in firms located in a better marketization environment and a stronger Intellectual Property Rights (IPR) protection environment. Our main results pass a series of robustness tests and endogeneity issues.
Journal: Applied Economics
Pages: 2413-2437
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2102577
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102577
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:21:p:2413-2437



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2102575_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yahui Yang
Author-X-Name-First: Yahui
Author-X-Name-Last: Yang
Author-Name: Zhe Peng
Author-X-Name-First: Zhe
Author-X-Name-Last: Peng
Author-Name: Jai-Won Ryou
Author-X-Name-First: Jai-Won
Author-X-Name-Last: Ryou
Title: What determines the long-term volatility of the offshore RMB exchange rate?
Abstract: 
 China has been promoting the internationalisation of the RMB for two decades. As a result, its offshore foreign exchange market has been substantially revitalised, despite that China’s capital market remains partially open. The movements of offshore exchange rates can provide crucial clues to understanding the offshore market structure and the effects of interventions by Chinese monetary authorities. Using the GARCH-MIDAS model, this paper examines how the degree of openness and economic fundamentals – both observed and unobserved – affect the long-term volatility of offshore exchange rates. We find that, first, trade openness attenuates the long-term volatility, while financial openness has no effect. Specifically, the use of bilateral currency swap agreements and the relaxation of capital control are associated with lower volatility, while stock market connect programs tend to increase the volatility. Second, observed fundamentals, including relative measures for growth, interest rate, and money supply, have significant negative effects on offshore volatility. Third, although economic policy uncertainty and market risk affect long-term volatility, liquidity does not appear to be a culprit of volatility. In terms of FX interventions, direct intervention decreases the volatility, while oral intervention increases volatility.
Journal: Applied Economics
Pages: 2367-2388
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2102575
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102575
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:21:p:2367-2388

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2104803_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yu Yang
Author-X-Name-First: Yu
Author-X-Name-Last: Yang
Author-Name: Weiliang Su
Author-X-Name-First: Weiliang
Author-X-Name-Last: Su
Title: Does anti-poverty intervention strengthen mental resilience? Evidence from the COVID-19 shock on targeted poverty alleviation program in China
Abstract: 
 Resilience is beneficial for poor households to overcome the negative shocks and shake off the poverty trap completely in the long run. In this article we evaluate the impact of poverty alleviation intervention on mental resilience by exploiting the natural experiment of the COVID-19 shock. Using the survey data collected in early March 2020 from underdeveloped region in West China, we address the impact of targeted poverty alleviation program (TPAP) on confidence level of off-farm and total income recovery using the difference-in-difference method. We find that the program enhances mental resilience for the out of poverty households rather than the in poverty households, especially in terms of confidence level of off-farm income recovery. In addition, we also find that proactivity of employment takes account of the impact of TPAP on confidence level of off-farm income recovery.
Journal: Applied Economics
Pages: 2725-2739
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2104803
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2104803
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:24:p:2725-2739



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2106031_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Cheolbeom Park
Author-X-Name-First: Cheolbeom
Author-X-Name-Last: Park
Title: Optimal salary inequality for team performance: evidence from National Football League data
Abstract: 
 Using salary data for players in the National Football League, I examine empirically the relationship between salary inequality and team performance under dynamic panel regressions. Main findings are: 1) the relationship between salary inequality and team performance is robustly hump-shaped, 2) the optimal Gini index to maximize the number of wins in a regular season is approximately 0.71 from estimates with all players’ salary data and ranges between 0.52 and 0.56 with players on rosters. These results imply that neither perfect equality nor perfect inequality in salary distribution is beneficial to team performance.
Journal: Applied Economics
Pages: 2773-2787
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2106031
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2106031
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:24:p:2773-2787



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2106033_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xueqing Liu
Author-X-Name-First: Xueqing
Author-X-Name-Last: Liu
Author-Name: Kunpeng Zhang
Author-X-Name-First: Kunpeng
Author-X-Name-Last: Zhang
Author-Name: Yayun Ren
Author-X-Name-First: Yayun
Author-X-Name-Last: Ren
Title: Does climate warming affect labour productivity in emerging economies?—Evidence from Chinese-listed firms
Abstract: 
 In this study, we match the weather data at the prefecture-level city level in China with the data of listed firms in China, and examine the impact of high-temperature weather on the labour productivity and firm response strategies. We find that high-temperature weather is negatively correlated with labour productivity. The impact is more pronounced in Non-SOEs, heat-sensitive industries, and in the southern region. The additional analysis showed that firms can alleviate the negative impact of high-temperature weather by increasing employee compensation, and carrying out digital transformation. High-temperature weather prompts firms to reduce the number of blue-collar occupations and increase the number of white-collar occupations. This study highlights the urgency of the impact of current climate warming on emerging economies from the perspective of employees, enriches the cross-study of labour and climate economics, and provides suggestions for firms to alleviate the negative impact of high-temperature weather and improve production efficiency.
Journal: Applied Economics
Pages: 2801-2814
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2106033
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2106033
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:24:p:2801-2814



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2106032_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jithin P
Author-X-Name-First: Jithin
Author-X-Name-Last: P
Author-Name: Sania Ashraf
Author-X-Name-First: Sania
Author-X-Name-Last: Ashraf
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Title: Does global value chain participation induce economic growth? Evidence from panel threshold regression
Abstract: 
 We investigate the threshold effects of GVC participation and its disaggregated level (forward and backward participation) on economic growth for 62 economies for the period 2000–2018. Our paper is one of the first to analyse the multiple regime effects of GVC participation on economic growth. We find that GVC participation positively impacts economic growth in a country with higher economic growth in both the aggregate and disaggregate analysis. Contemporaneously, it is negatively associated with economic growth in countries with lower economic growth. The coefficient value of forward participation for lower growing economies is higher in the first and second regime than the backward participation, which implies that forward participation has more deleterious effects on economic growth in the less developed and developing economies. The growth effects of forward and backward participation indicate that both have different effects on economic growth in the moderate growing economies, which implies that the direction of GVC participation does matter in determining economic growth in the moderate growing economies.
Journal: Applied Economics
Pages: 2788-2800
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2106032
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2106032
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:24:p:2788-2800



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107163_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yong-Kyun Bae
Author-X-Name-First: Yong-Kyun
Author-X-Name-Last: Bae
Title: Vehicle Owners’ Corrective Behaviour in American Automobile Recalls
Abstract: 
 In this paper, we study vehicle owner behavior in response to automobile recalls in the US by examining data on recall correction rates. We address three research questions. First, do owner notification letters effectively lead to vehicle owners’ corrective behavior? Second, do vehicle owners take cost-saving actions using relevant information in recall letters? Third, can we identify vehicle owners’ behavioral differences in responding to recall issuance? We find evidence that vehicle owners respond to riskier defects more actively. In particular, if recall letters contain alerting words such as ‘death’, then the correction rates of those recalls are higher. Furthermore, the correction rate for recall letters with the expression ‘free of charge’ is higher. Heterogeneous vehicle owners behave differently: some owners immediately return their vehicles for repairs regardless of the risks their vehicles have, while others procrastinate their corrective actions and respond to recalls only when they believe that the defects are risky. We conclude that owner notification letters play an important role in raising correction rates.
Journal: Applied Economics
Pages: 2815-2833
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107163
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107163
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:24:p:2815-2833



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2105299_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alba Del Villar
Author-X-Name-First: Alba
Author-X-Name-Last: Del Villar
Title: Regional income divergence and economic development in Africa: is Kuznets right?
Abstract: 
 This paper studies the relationship between economic development and within-country income inequality using satellite night-light data for a panel of 49 African countries. We highlight three worrisome facts describing regional income disparities in Africa, which rank among the highest in the world, they are persistent, and they have increased 2.16% annually over the period 1992–2012. Our instrumental variable (IV) results confirm the existence of a regional Kuznets curve characterized by an inverted U curve, implying that although economic progress increases regional income inequalities at first, this positive link eventually flats out at a certain level of GDP per capita (2200 constant USD) and turns to reduce income inequality as further as GDP per capita still increases. We also find that the positive impact of total trade on regional income inequalities disappears once we account for potential endogeneity issues. Aid flows, FDI, industry, oil rents, government share, and institutions present positive correlations and reinforce our main results. Our conclusions should raise the concern for policymakers and economists to enhance policies towards a more prosperous, inclusive, and sustainable economic future in Africa, especially in the least developed countries.
Journal: Applied Economics
Pages: 2755-2772
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2105299
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2105299
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:24:p:2755-2772



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2104804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Ioannis Chatziantoniou
Author-X-Name-First: Ioannis
Author-X-Name-Last: Chatziantoniou
Author-Name: David Gabauer
Author-X-Name-First: David
Author-X-Name-Last: Gabauer
Title: Dynamic connectedness between COVID-19 news sentiment, capital and commodity markets
Abstract: 
 This study investigates the dynamic transmission mechanism between COVID-19 news sentiment (Google Trends Index), and S&P100, crude oil and gold volatility indices using the recently developed time-varying parameter vector autoregressive (TVP-VAR)-based extended joint connectedness approach. This framework corrects for the Generalized Forecast Error Variance Decomposition (GFEVD) normalization problem. The obtained empirical results suggest that dynamic total connectedness is heterogeneous over time and severely affected by COVID-19. More importantly, we identify COVID-19 news sentiment to be the main driver of spillover shocks indicating that it is indeed an important predictor of the volatility indices employed in our study. Thus, our findings have important implications for policymakers, private investors, as well as for portfolios and risk managers.
Journal: Applied Economics
Pages: 2740-2754
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2104804
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2104804
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:24:p:2740-2754

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107610_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Syed Kanwar Abbas
Author-X-Name-First: Syed Kanwar
Author-X-Name-Last: Abbas
Title: Asymmetry in the regimes of inflation and business cycles:the New Keynesian Phillips curve
Abstract: 
 Employing a novel instrumental variable method, we provide three findings with the idea of introducing regime switching into the NKPC for Australia, Canada, New Zealand, the United Kingdom and the United States. First, the response of inflation to the driving force is asymmetric in expansion/contraction, and high/low inflation regimes. The switch between regimes changes the inflation dynamics, thus changing the trade-off between stabilizing inflation and the output gap. Second, price stickiness changes in regimes. The price rigidity explains the inflation-output gap and the inflation-law of one price gap relationship across regimes. Third, inflation dynamics are more forward-looking in the expansionary regime. These results yield the implications of targeting deviations from the law of one price for stabilizing inflation and business cycles.
Journal: Applied Economics
Pages: 2875-2888
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107610
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107610
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:25:p:2875-2888



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107987_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ma Deshui
Author-X-Name-First: Ma
Author-X-Name-Last: Deshui
Author-Name: Ahsan Akbar
Author-X-Name-First: Ahsan
Author-X-Name-Last: Akbar
Author-Name:  Bilal
Author-X-Name-First: 
Author-X-Name-Last: Bilal
Title: Monetary policy, assets mispricing and share pledge: empirical evidence from A-share listed companies of China
Abstract: 
 Based on the influencing factors of share pledging, this paper discusses the influence of asset mispricing on the share pledging decision-making of controlling shareholders and examines the differences in the impact of different monetary policies using China’s A-share listed firms from 2007 to 2018. This study found that when the share price is overvalued, the share pledging enthusiasm of controlling shareholders increases, and the scale of share pledging expands. Further examination found that the enthusiasm and the scale of share pledge of controlling shareholders increase significantly with the increase in the overvaluation level of the share price. When the monetary policy tends to be loose or the interest rate is low, the enthusiasm for share pledging increases, and the scale of share pledge expands, which is more obvious when the stock price is overvalued. This study indicates that the capital market is not perfect, and insiders represented by controlling shareholders can identify investors’ cognitive biases, respond to asset mispricing in time, and raise more funds.
Journal: Applied Economics
Pages: 2889-2901
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107987
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107987
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:25:p:2889-2901



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107165_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hala Abou-Ali
Author-X-Name-First: Hala
Author-X-Name-Last: Abou-Ali
Author-Name: Ronia Hawash
Author-X-Name-First: Ronia
Author-X-Name-Last: Hawash
Author-Name: Rahma Ali
Author-X-Name-First: Rahma
Author-X-Name-Last: Ali
Author-Name: Yasmine Abdelfattah
Author-X-Name-First: Yasmine
Author-X-Name-Last: Abdelfattah
Author-Name: Megahed Hassan
Author-X-Name-First: Megahed
Author-X-Name-Last: Hassan
Title: Is it getting too hot to work? Investigating the impact of climate change on labour supply in the MENA region
Abstract: 
 Climate change and its expected consequences have been a growing global concern. This study aims at examining the impact of changes in climate indicators on labour supply in the Middle East and North Africa (MENA) region. We use different data sets including the Integrated Labour Market Panel Survey of Egypt, Jordan, and Tunisia spanning the period from 2006 to 2018 matched with a globally gridded climate data set to test the impact of changes in temperature, humidity, and precipitation on labour weekly working hours. We differentiate between ‘high-risk’ groups engaged in economic activities with higher exposure to climate and ‘low-risk’ groups with relatively less exposure to climate. Our results indicate that changes in temperature and humidity have a significant impact on labour working hours, whereas precipitation has no significant effect; yet the marginal impact of changes in temperature and humidity differs between ‘high-risk’ and ‘low-risk’ groups. The results show that working hours are impeded by heat and humidity after a specific threshold.
Journal: Applied Economics
Pages: 2847-2862
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107165
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107165
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:25:p:2847-2862



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107988_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Title: Local governments’ efficiency and its heterogeneity – empirical evidence from a stochastic frontier analysis of Italian municipalities 2010-2018
Abstract: 
 This paper investigates the efficiency of Italian local governments using Stochastic Frontier Analysis for the years 2010–2018. As a dependent variable of the cost function, we consider the total current expenditure for producing six ‘essential’ local public services: education (ancillary services), waste management, general administration, local police, public roads and planning, and social services. As outputs, we employ indicators for each of the six services in the multi-output cost function. In an alternative model specification, we use a composite indicator for the total output volume. Thus, we estimate a global efficiency score for each local government, for each year. The findings reveal that the total expenditure declined over time, more than proportionally than the contraction of output produced. Therefore, the global efficiency of Italian municipalities is estimated to be higher in 2018 than it was in 2010. Moreover, there is evidence of substantial scale economies and congestion effects, with municipalities with around 10,000 inhabitants being more efficient than their smaller and larger counterparts. Lastly, on average, local governments are more efficient in providing public services in the Northern regions than in the Southern ones, although efficiency does not decline monotonically moving South.
Journal: Applied Economics
Pages: 2902-2927
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107988
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107988
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:25:p:2902-2927



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2142509_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Duong Lam Anh Tran
Author-X-Name-First: Duong Lam Anh
Author-X-Name-Last: Tran
Author-Name: Ivan Deseatnicov
Author-X-Name-First: Ivan
Author-X-Name-Last: Deseatnicov
Title: Technology level and the global value chain
Abstract: 
 This paper investigates the role of technology levels in shaping the structure of the global value chain (GVC) at the macro level. We incorporate the Ricardian comparative advantage into the production of intermediate goods involving both snake-and spider-type supply chains to capture the overall GVC integration. We analytically find that the country with a higher technology level produces the intermediate inputs at production stages involving a higher degree of complexity, which is consistent with the real data. Finally, we calibrate the GVC participation value and wages and document the good fit of our model to the real-world data.
Journal: Applied Economics
Pages: 2928-2943
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2142509
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2142509
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:25:p:2928-2943



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peiran Li
Author-X-Name-First: Peiran
Author-X-Name-Last: Li
Author-Name: Xianghui Yuan
Author-X-Name-First: Xianghui
Author-X-Name-Last: Yuan
Author-Name: Liwei Jin
Author-X-Name-First: Liwei
Author-X-Name-Last: Jin
Title: Government direct intervention and stock market concentration
Abstract: 
 After the crackdown in 2015, Chinese state-owned capital, also called the ‘national team’ by investors, has become extensively involved in stock market investments. As a form of government direct intervention, state capital in the stock market may have implications for market efficiency and evolution. This study investigates the unbalanced departure of the national team in the aftermath of the crisis: the government no longer directly holds a large number of listed companies’ stocks, but its share in the market has declined little. Using a panel regression covering most stock industries, we find a positive association between national team and industry concentration in the stock market. Often, state-funded holdings may inhibit competition and allow the market to evolve in a more concentrated structure. Our study reveals a new potential negative externality of the Chinese government’s direct intervention in the stock market.
Journal: Applied Economics
Pages: 2863-2874
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107609
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107609
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:25:p:2863-2874



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107164_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abhishek Rohit
Author-X-Name-First: Abhishek
Author-X-Name-Last: Rohit
Author-Name: Raghavendra S. Bhat
Author-X-Name-First: Raghavendra S.
Author-X-Name-Last: Bhat
Title: Explaining rotated linkages between monetary policy and long-term interest rates
Abstract: 
 Understanding the linkages between monetary policy surprises and long-term interest rates is of immense interest to policymakers and researchers worldwide. In this paper, we investigate this relationship for a large sample of 29 economies and attempt to unravel the possible reasons for rotated linkages between these two variables in a long time-period, i.e., 1979–2019. We provide empirical evidence on exogenous shifts in the preferences of central banks in terms of weightage of inflation to output, altering the behaviour of long-term interest rates. We examine this phenomenon using financial crisis, and positive inflation deviations which may cause such exogenous shifts, and find both to be responsible for rotated linkages. On comparison, we find that the linkages get rotated the most during systemic crisis, followed by banking crisis, and currency crisis in that order. In terms of policy prescriptions, we confirm that central banks can ensure effective monetary transmission to long-term interest rates by having a robust monetary policy framework which encompasses the three pillars of independence and accountability, policy and operational strategy, and communications.
Journal: Applied Economics
Pages: 2835-2846
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107164
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107164
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:25:p:2835-2846

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107990_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ioana Alexandra Horodnic
Author-X-Name-First: Ioana Alexandra
Author-X-Name-Last: Horodnic
Author-Name: Colin C. Williams
Author-X-Name-First: Colin C.
Author-X-Name-Last: Williams
Author-Name: Rodica Ianole-Cãlin
Author-X-Name-First: Rodica
Author-X-Name-Last: Ianole-Cãlin
Author-Name: Adrian V. Horodnic
Author-X-Name-First: Adrian V.
Author-X-Name-Last: Horodnic
Title: Exploring the illegal practice of under-reporting wages in the construction industry: some lessons from Romania
Abstract: 
 The aim of this paper is to evaluate the practice of under-reporting wages (and its multifarious forms) in the construction industry, which is a dominant type of undeclared work found in the industry, and how it can be explained and tackled. To do so, a mixed-methods approach is used, including in-depth interviews, focus groups and a representative national survey comprising 1,212 respondents collected during April–May 2021 in Romania, a country with one of the highest shares of undeclared work in the European Union. A logistic regression analysis shows that this practice is not confined to vulnerable groups but is rather an extensive phenomenon. Evaluating how wage under-reporting could be tackled, the finding is that there is no significant relationship between how employees perceive the level of sanction and the risk of detection and their likelihood of participating in wage under-reporting. However, the results reveal the significance of social norms; those who have acquaintances who receive under-reported wages are more likely to engage themselves in this wage arrangement. The implications for theory and practice are then considered.
Journal: Applied Economics
Pages: 2978-2992
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2107990
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107990
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:26:p:2978-2992



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2108749_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sara Burrone
Author-X-Name-First: Sara
Author-X-Name-Last: Burrone
Author-Name: Giulia Dingacci
Author-X-Name-First: Giulia
Author-X-Name-Last: Dingacci
Author-Name: Massylla Dia
Author-X-Name-First: Massylla
Author-X-Name-Last: Dia
Author-Name: Baboucar Bamba
Author-X-Name-First: Baboucar
Author-X-Name-Last: Bamba
Author-Name: Vieri Tarchiani
Author-X-Name-First: Vieri
Author-X-Name-Last: Tarchiani
Author-Name: Elisa Grieco
Author-X-Name-First: Elisa
Author-X-Name-Last: Grieco
Author-Name: Carlotta Zini
Author-X-Name-First: Carlotta
Author-X-Name-Last: Zini
Author-Name: Andrea Di Vecchia
Author-X-Name-First: Andrea
Author-X-Name-Last: Di Vecchia
Author-Name: Patrizio Vignaroli
Author-X-Name-First: Patrizio
Author-X-Name-Last: Vignaroli
Title: The role of staple crop production during the Covid-19 outbreak. Evidence for women small producers in Senegal
Abstract: 
 The Covid-19 outbreak has negatively affected the agri-food system especially in developing countries where most people rely on agriculture. Using primary data, we study the role of staple crop production as a coping strategy during the Covid-19 outbreak. Using a linear probability model, this article assesses the effect of income and food security deterioration perceived as a consequence of Covid-19 on rice investment propensity among 1320 women rice producers in Casamance, Senegal. Our results show that food security deterioration and especially income reduction due to Covid-19 are significantly and positively related to rice investment propensity. The presence of food retailers and the type of household livelihood, farm or nonfarm, dramatically drive the Covid-19 perception effects on rice investment propensity. While women small producers in villages with food retailers slightly increase their propensity to invest in rice, in remote villages lacking food retailers rice production represents an effective coping strategy for those women living in households that depend to a large extent on the market, i.e. those relying on nonfarm income. These results are supported by the strong correlation between limited physical access to the market, due to movement restrictions, and rice investment propensity, especially among households relying on nonfarm income.
Journal: Applied Economics
Pages: 3026-3042
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108749
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108749
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:26:p:3026-3042



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107989_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rafael Kujo Monteiro
Author-X-Name-First: Rafael Kujo
Author-X-Name-Last: Monteiro
Author-Name: Rodolfo Coelho Prates
Author-X-Name-First: Rodolfo Coelho
Author-X-Name-Last: Prates
Author-Name: Leonardo Matsuno Frota
Author-X-Name-First: Leonardo Matsuno
Author-X-Name-Last: Frota
Title: The determinants of player transfers in Brazil: the role of expectations in the football market
Abstract: 
 The study of the football transfer market is relevant to understanding the clubs’ managerial capacity when they trade their most important assets. So far, the research on football transfers has focused mainly on the movements between European clubs. Thus, it is necessary to expand the analysis to developing countries, particularly those with a strong football tradition. We study the Brazilian professional football transfer market by analysing the transfers between top Brazilian clubs from 2018 to 2020. We use a two-step Heckman correction to account first for variables that affect the probability of a transfer and later, the actual transfer fee. We include an innovative index to capture the players’ ability to perform according to the specialists’ expectations. Our results show that besides appreciating the specific characteristics of the player such as age and nationality, the Brazilian market also considers the capacity of a player to fulfill previous expectations when deciding who is transferred and for what price. Finally, the remaining time of the contract and the recent transfer history of the player also affect transfer movements in Brazil, along with the seller club’s performance.
Journal: Applied Economics
Pages: 2964-2977
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2107989
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107989
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:26:p:2964-2977



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2123102_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Larisa Smirnykh
Author-X-Name-First: Larisa
Author-X-Name-Last: Smirnykh
Author-Name: Evgeniya Polyakova
Author-X-Name-First: Evgeniya
Author-X-Name-Last: Polyakova
Title: The human capital and income of immigrants: evidence from Russia
Abstract: 
 This study examines how immigration flows caused by the disintegration of states and globalisation change the composition of the labour force and how human capital is transferred from countries of the former Soviet Union to Russia. We estimate the contribution of imperfect human capital transferability to explaining the immigrant–native income differentials by using the Russian Longitudinal Monitoring Survey of 2009–2012. The findings reveal that the income of foreign-born people who moved before the disintegration of the USSR is not significantly different from the income of native-born citizens. In contrast, foreign-born groups who immigrated to Russia after the disintegration of the USSR have lower incomes than the native-born group. In addition, the income premium on education and labour experience received in host countries of the foreign-born group is lower compared to the income premium on education and labour experience received in Russia. An important factor explaining the difference in income between natives and foreign-born people who moved to Russia after the collapse of the USSR is the imperfection in the mechanism of human capital transferability.
Journal: Applied Economics
Pages: 2945-2963
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2123102
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123102
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:26:p:2945-2963



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2108750_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zehua Shi
Author-X-Name-First: Zehua
Author-X-Name-Last: Shi
Title: Do classroom teachers matter for academic achievement of students? Evidence from random assignment of students to teachers in China
Abstract: 
 In China’s middle schools, each class is assigned both subject teachers who only instruct students on specific course and one classroom teacher who not only teaches in class but also provides out-class-support. This study evaluates whether classroom teachers are more effective than subject teachers in improving students’ academic performance. To examine the causal effect of the classroom teacher, I take the advantage of data that students are randomly assigned to classes in middle schools in China and exploit the within-teacher variation given a teacher acting as a classroom teacher for his or her own class but also giving lectures to other class(es) as a subject teacher in one term in China. The findings show that a classroom teacher has a significant positive effect on the students’ test scores in his or her own class compared with other classes he or she teaches. I further investigate the possible mechanisms and find that classroom teachers tend to have more interactions with their own class both inside class and outside class beyond giving lectures than with other classes they teach. This study provides insights for understanding the effect of teacher support outside class on students’ academic outcomes.
Journal: Applied Economics
Pages: 3043-3061
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108750
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108750
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:26:p:3043-3061



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2107991_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jin Wook Kim
Author-X-Name-First: Jin Wook
Author-X-Name-Last: Kim
Author-Name: Cheong Kyu Park
Author-X-Name-First: Cheong Kyu
Author-X-Name-Last: Park
Title: Can ESG Performance Mitigate Information Asymmetry? Moderating Effect of Assurance Services
Abstract: 
 This study examines whether ESG performance reduces information asymmetry and whether assurance services have a moderating effect on the association between ESG performance and information asymmetry. Given the increasing importance and benefits of ESG, examining how ESG performance improves the information environment is a critical question. Using ESG performance data, this study employs a panel data analysis of a large set of U.S. companies with 1,294 observations that are one-to-one matched between assured and unassured groups. The findings indicate that ESG performance reduces information asymmetry and that assurance services have a moderating effect on the negative relationship between ESG performance and information asymmetry. This study makes several contributions to the ESG literature by providing new evidence on ESG performance, employing the moderating variable of assurance services, and minimizing selection bias with propensity score matching. These findings have implications for the professionals and practitioners for information credibility of ESG and assurance services.
Journal: Applied Economics
Pages: 2993-3007
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2107991
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107991
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:26:p:2993-3007



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2108748_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lanfang Deng
Author-X-Name-First: Lanfang
Author-X-Name-Last: Deng
Author-Name: Haizheng Li
Author-X-Name-First: Haizheng
Author-X-Name-Last: Li
Author-Name: Zhiqiang Liu
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Liu
Title: The impact of family co-residence and childcare on children’s cognitive skills
Abstract: 
 We investigate the impact of family co-residence structure and allocation of major childcare responsibility across generations on child cognitive development. Using data from China, we find that children living in multigenerational families with grandparents as the main caregiver generally perform better in cognitive tests, while children who live only with their parents and children who live only with their grandparents (the so-called left-behind children) do not show a significant difference in their cognitive performance. Moreover, we find that the effect of family environment differs between boys and girls. We also find suggestive evidence that family environment affects child cognitive development through several behavioural factors indicative of intrafamily interactions.
Journal: Applied Economics
Pages: 3008-3025
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108748
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108748
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:26:p:3008-3025

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2108753_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mahdi Shahrazi
Author-X-Name-First: Mahdi
Author-X-Name-Last: Shahrazi
Author-Name: Saman Ghaderi
Author-X-Name-First: Saman
Author-X-Name-Last: Ghaderi
Author-Name: Bahram Sanginabadi
Author-X-Name-First: Bahram
Author-X-Name-Last: Sanginabadi
Title: Commodity prices and inflation: an application of structural VAR
Abstract: 
 The potential influence of global commodity prices on consumer price inflation has been a concern of researchers and policymakers for decades. Even though a body of literature has investigated such connections, the results are mixed. This study uses a structural vector autoregressive (SVAR) model to investigate the impact of global commodity prices on Iran’s inflation over the 2009:1-2018:11 period. We have included commodity price, exchange rate, and stock returns as explanatory variables in our model. Based on the findings of our long-run multiplier matrix the response of inflation to the commodity price shocks is positive and statistically significant. In other words, global commodity prices increase Iranian inflation. Also, the results suggest that the explanatory power of commodity price shocks in inflation fluctuations is higher than those of exchange rate and stock returns in the long run.
Journal: Applied Economics
Pages: 3110-3120
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108753
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108753
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:27:p:3110-3120



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2109581_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kunal Saha
Author-X-Name-First: Kunal
Author-X-Name-Last: Saha
Author-Name: Vinodh Madhavan
Author-X-Name-First: Vinodh
Author-X-Name-Last: Madhavan
Author-Name: G. R. Chandrashekhar
Author-X-Name-First: G. R.
Author-X-Name-Last: Chandrashekhar
Title: Relationship between ETFs and underlying indices: a fractional cointegration approach
Abstract: 
 This article analyzes the long-run relationship between domestic equity Index ETFs and their respective underlying indices in various markets. In doing so, we study the inter-relationship between these ETFs and their underlying equity indices using the ‘traditional’ Cointegration (CVAR) and Fractional Cointegration (FCVAR) models. The FCVAR model is an extension of CVAR model that is geared towards capturing long memory in a multivariate framework. We examine if FCVAR is superior to the CVAR framework in terms of in-sample fit and out-sample forecasting performance. Our findings establish the presence of fractional cointegration between ETFs and their indices. However, our test outcomes are highly sensitive to model specifications and timelines considered for estimation. Due to the dynamic nature of such cointegration relationship, practitioners are nudged to exercise caution while engaging in hedging and pairs trading that involve ETFs. This is because such trades are bound to be premised on selective inferences drawn from certain multivariate model specifications, and hence, may not be generalizable across all model specifications.
Journal: Applied Economics
Pages: 3184-3193
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2109581
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2109581
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:27:p:3184-3193



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2109578_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Matteo Migheli
Author-X-Name-First: Matteo
Author-X-Name-Last: Migheli
Author-Name: Donatella Saccone
Author-X-Name-First: Donatella
Author-X-Name-Last: Saccone
Title: Some new evidence on economic freedom and income distribution
Abstract: 
 While the extant literature shows that various indices of economic freedom display a positive relationship with the level of income inequality, it is unclear who are the winners and, in particular, the losers. For this reason, an analysis based on deciles and top percentiles helps to deepen the understanding of this issue. Starting from this consideration, the paper adds new evidence on the relation between economic freedom and income distribution by analysing a panel of 70 developing and developed countries for the period 1980–2014. The effects of economic freedom on income shares by deciles and top percentiles are estimated through an instrumental-variable approach ruling out potential reverse causality. Results show that economic freedom increases the income shares of the percentiles included in the top decile, eroding the income of the middle and, especially, upper-middle segments. The poor, instead, appear to be unaffected.
Journal: Applied Economics
Pages: 3154-3169
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2109578
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2109578
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:27:p:3154-3169



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2109580_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Deyun Xiao
Author-X-Name-First: Deyun
Author-X-Name-Last: Xiao
Author-Name: Zhiqiang Chen
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Chen
Title: The more struggling, the happier?——Analysis based on two dimensions of social equity
Abstract: 
 Based on the data of CGSS (2015), the paper constructs an intermediary effect model and a moderating effect model to analyse the impacts of individual effort, opportunity equity(OPEQ), and outcome equity(OCEQ) on subjective well-being(SWB). We found: (1) Individual effort and OPEQ can both enhance SWB, and OPEQ plays a negative moderating role, which is not significant for the low-income strata. (2) The relationship between OCEQ and SWB is inverted U-shaped. The low-income group has a stronger tolerance to outcome inequity, and it has an inverted U-shaped regulation in the process of individual efforts to affect SWB, which is not reflected in the high-income class. (3) In the process of individual efforts affecting SWB, OPEQ and OCEQ both have mediating effects, which are not significant in the high-income class. (4) In terms of intergenerational relations, parents’ education can significantly improve SWB and negatively regulate the relationship between individual effort and SWB, family status at the age of 14 and SWB were significantly negatively correlated.
Journal: Applied Economics
Pages: 3170-3183
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2109580
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2109580
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:27:p:3170-3183



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2108752_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: George Marian Aevoae
Author-X-Name-First: George Marian
Author-X-Name-Last: Aevoae
Author-Name: Alin Marius Andrieș
Author-X-Name-First: Alin Marius
Author-X-Name-Last: Andrieș
Author-Name: Steven Ongena
Author-X-Name-First: Steven
Author-X-Name-Last: Ongena
Author-Name: Nicu Sprincean
Author-X-Name-First: Nicu
Author-X-Name-Last: Sprincean
Title: ESG and systemic risk
Abstract: 
 How do changes in Environmental, Social and Governance (ESG) scores influence banks’ systemic risk contribution? Using a dynamic panel model, we document a beneficial impact of the ESG Combined Score and Governance pillar on banks’ contribution to system-wide distress analysing a panel of 367 publicly listed banks from 47 countries over the period 2007–2020. Stakeholder theory and theory relating social performance to expected returns in which enhanced investments in corporate social responsibility mitigate bank-specific risks explain our findings. However, only better corporate governance represents a tool in reducing bank interconnectedness and maintaining financial stability. The results are robust to alternative measures of systemic risk, both contribution and exposure, as well as when estimating a static model. Our findings stress the importance of integrating banks’ ESG disclosure into regulatory authorities’ supervisory mechanisms as qualitative information.
Journal: Applied Economics
Pages: 3085-3109
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108752
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108752
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:27:p:3085-3109



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2108754_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christophe Desagre
Author-X-Name-First: Christophe
Author-X-Name-Last: Desagre
Author-Name: Paolo Mazza
Author-X-Name-First: Paolo
Author-X-Name-Last: Mazza
Author-Name: Mikael Petitjean
Author-X-Name-First: Mikael
Author-X-Name-Last: Petitjean
Title: Crypto market dynamics in stressful conditions
Abstract: 
 Understanding market liquidity and trading dynamics in one of the most innovative and volatile markets in the world, is crucial from the standpoint of both regulators and investors. In contrast to stocks, very little is known about the functioning of cryptos around extreme returns (ERs). Using high-frequency order-book and trade data for the 8 most widespread cryptos on 16 trading platforms over three years, we examine the contemporaneous and lagged influence of trading activity and liquidity on the occurrence of extreme returns (ERs) in a logistic regression framework adapted to rare events. Despite its huge volatility, we show that the trading and liquidity dynamics on the crypto market around ERs is not orthogonal to what traditional markets experience in stressful conditions. The number of trades is a particularly robust driver to explain the occurrence of ERs, followed by the relative spread. The same drivers are identified for traditional markets.
Journal: Applied Economics
Pages: 3121-3153
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108754
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108754
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:27:p:3121-3153



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2108751_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christian Hutter
Author-X-Name-First: Christian
Author-X-Name-Last: Hutter
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Labour market effects of wage inequality and skill-biased technical change
Abstract: 
 This paper analyses the effects of wage inequality on labour market development. Relevant theories are ambiguous, just as public debates. We measure the effects of inequality, skill-biased and skill-neutral technical change on hours, productivity and wages in a novel structural vector error correction framework identified by economically motivated long-run restrictions. The results show that structural inequality shocks have a negative impact on hours, productivity and wages. These effects are particularly pronounced at high inequality levels and for inequality below the median wage. Skill-biased technology shocks reduce – unlike skill-neutral ones – hours but increase inequality, productivity and wages.
Journal: Applied Economics
Pages: 3063-3084
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108751
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108751
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:27:p:3063-3084

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2110212_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Juan Carlos Cuestas
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Cuestas
Author-Name: Merike Kukk
Author-X-Name-First: Merike
Author-X-Name-Last: Kukk
Author-Name: Natalia Levenko
Author-X-Name-First: Natalia
Author-X-Name-Last: Levenko
Title: Misalignments in house prices and economic growth in Europe
Abstract: 
 In this paper we investigate house price misalignments and how they affect the real economy. We estimate the long-term relationship between house prices and the fundamentals that determine long-term house prices for a panel of European countries with dynamic OLS, using data from 2005–2018. We find that income has been the main driver of fundamental house prices in all countries, while the supply of dwellings has calmed the rise in house prices in some of them. We calculate house price misalignments, which are deviations of house prices from the fundamental value, and we employ them in the growth model. The results of the growth regression indicate that house price imbalances amplify business cycles in the short term, but in the long term house price overvaluations slow economic growth down. The findings imply that it is crucial to take measures to stabilize housing cycles.
Journal: Applied Economics
Pages: 3215-3237
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2110212
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2110212
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3215-3237



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2114990_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Philip Garland Gayle
Author-X-Name-First: Philip Garland
Author-X-Name-Last: Gayle
Author-Name: Jin Wang
Author-X-Name-First: Jin
Author-X-Name-Last: Wang
Author-Name: Shengnan Fang
Author-X-Name-First: Shengnan
Author-X-Name-Last: Fang
Title: The Organic food price premium and its susceptibility to news media coverage: evidence from the US milk industry
Abstract: 
 This paper investigates the extent to which media coverage on organic dairy issues influences consumers’ willingness to pay (WTP) for the organic attribute of milk. We find that news with contents most often viewed as negative towards organic dairy are more powerful in decreasing consumers’ WTP for the organic attribute of milk compared to the positive WTP impact of news articles with contents most often viewed as positive towards organic dairy. Interestingly, consumers’ increasing exposure to organic dairy news that even take a neutral stance on the organic attribute also increases their WTP for the organic attribute.
Journal: Applied Economics
Pages: 3296-3315
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114990
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114990
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3296-3315



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2110563_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jude I. Iziga
Author-X-Name-First: Jude I.
Author-X-Name-Last: Iziga
Author-Name: Shingo Takagi
Author-X-Name-First: Shingo
Author-X-Name-Last: Takagi
Title: An empirical examination of the effect of infrastructure on economic development: a large and heterogeneous panel data analysis
Abstract: 
 Infrastructure drives economic development. This study investigates to what extent infrastructure and skilled labour affect aggregate output, by analysing large heterogeneous panel data of 130 countries over two decades. We implement an autoregressive distributed lag (ARDL) model to extract the long-run production technology relationship among economic growth, infrastructure, and skilled labour. The complementarity of skilled labour and infrastructure is conducive to skill-biased economic growth. Skill differences account for disparities among workers’ wages worldwide, thereby widening inequalities in income and consequently, living standards. Contrary to previous studies that have used frameworks assuming production function homogeneity across countries, we propose a methodology to identify latent country groups based on the long-run production technology embedded in the ARDL model, using an identification procedure of the unknown group structure in panel models. We select the optimal number of groups by implementing a new information criterion under multiple nuisance parameters and estimate the coefficients of the production functions for each country group. Based on the complementarity estimates of country groups and the estimated country classifications, we find that the effects of infrastructure generated grouped-heterogeneity of growth span across countries in estimated production relationships.
Journal: Applied Economics
Pages: 3255-3270
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2110563
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2110563
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3255-3270



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2110213_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhiwei Sheng
Author-X-Name-First: Zhiwei
Author-X-Name-Last: Sheng
Author-Name: Luye Ji
Author-X-Name-First: Luye
Author-X-Name-Last: Ji
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Title: The Impact of Pollution Events on the Productivity of Related Industries:A Case Study of Cadmium-Contaminated Industry
Abstract: 
 This research aims to explore how environmental pollution events affect total factor productivity in related industries in China. The results of the research found that (1) Cadmium-contaminated rice cases had negative impacts on the related industry after a time delay by reducing the production scale and investment in R&D to improve productive efficiency, therefore decreasing the total factor productivity. Rising public awareness significantly expanded the negative impact of environmental pollution events. (2) The more sophisticated environmental regulations at the provincial level, the more obvious the total factor productivity decreased after cadmium-contaminated rice cases. The effect of existing environmental regulations at the municipal and county levels was not satisfactory. (3) Cadmium-contaminated rice cases had a greater negative impact on East and Central China than other regions. The result also indicates cross-regional pollution transfer for the purpose of regulation evasion.
Journal: Applied Economics
Pages: 3238-3254
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2110213
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2110213
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3238-3254



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2109582_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Robert C. M. Beyer
Author-X-Name-First: Robert C. M.
Author-X-Name-Last: Beyer
Author-Name: Lazar Milivojevic
Author-X-Name-First: Lazar
Author-X-Name-Last: Milivojevic
Title: Dynamics and synchronization of global equilibrium interest rates
Abstract: 
 Empirical estimates of equilibrium real interest rates are so far mostly limited to advanced economies, since no statistical procedure suitable for a larger set of countries is available. This is surprising, as equilibrium rates have strong policy implications in emerging markets and developing economies as well. Current estimates of the global equilibrium rate rely on only a few countries but estimates for a more diverse set of countries can improve understanding of its dynamics and drivers. This paper uses a model and estimation strategy that decompose ex-ante real interest rates into permanent and transitory components even with short samples and high volatility. This is done with an unobserved component local level stochastic volatility model, which is used to estimate equilibrium rates for 50 countries with Bayesian methods. Equilibrium rates were lower in emerging markets and developing economies than in advanced economies in the 1980s, similar in the 1990s, and have been higher since 2000. In line with economic integration and rising global capital markets, synchronization has been rising over time and is higher among advanced economies. Equilibrium rates of countries with stronger trade linkages and similar demographic and economic trends are more synchronized.
Journal: Applied Economics
Pages: 3195-3214
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2109582
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2109582
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3195-3214



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2111023_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: José Valentim Machado Vicente
Author-X-Name-First: José Valentim Machado
Author-X-Name-Last: Vicente
Title: A non-knotty inflation risk premium model
Abstract: 
 In this article, I estimate the inflation risk premium (IRP) using a low-dimensional arbitrage-free dynamic model through a novel strategy. Instead of modelling the nominal and real yields jointly, I make assumptions about the short-term inflation rate. More specifically, I assume it follows a Gaussian process. This framework has a closed-form expression for IRP. Since inflation yields are not observed, to estimate the model parameters I approximate them by the break-even inflation rate. This approximation works well because the convexity correction is very small. I find that the estimated IRP is strongly correlated with those obtained using surveys or more complex models. Therefore, I provide an easier procedure to obtain IRP, avoiding the cumbersome estimation process of high-order models.
Journal: Applied Economics
Pages: 3271-3278
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2111023
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2111023
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3271-3278



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2114989_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kayla Hildebrand
Author-X-Name-First: Kayla
Author-X-Name-Last: Hildebrand
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Author-Name: Tracy A. Boyer
Author-X-Name-First: Tracy A.
Author-X-Name-Last: Boyer
Author-Name: Marco Palma
Author-X-Name-First: Marco
Author-X-Name-Last: Palma
Title: Does change in respondents’ attention affect willingness to accept estimates from choice experiments?
Abstract: 
 This study conducts a discrete choice experiment to estimate turfgrass producers’ willingness to accept (WTA) values using different logit models and specifications to capture respondents’ attention. We first estimate the mixed logit model and a generalized multinomial logit model with and without eye-tracking variables to demonstrate the importance of accounting for individuals’ differing levels of attention during an experiment. Our study finds that marginal WTA values are biased when individuals’ attention changes are not properly accounted for in the model specification. This finding leads to our second objective, to determine whether attention changes can be fully captured in the absence of eye tracking data by testing six alternative model specifications. All six models are able to detect learning and fatigue effects but are unable to fully capture changes in attention. Of the six alternative models tested, the two models that implement panel data offer more reliable and significant results, suggesting the type of data and model specification used may play an important role in diagnosing attention changes when compared to various heterogeneity models.
Journal: Applied Economics
Pages: 3279-3295
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114989
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114989
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3279-3295

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2114994_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joshua Duarte
Author-X-Name-First: Joshua
Author-X-Name-Last: Duarte
Author-Name: João Sousa Andrade
Author-X-Name-First: João Sousa
Author-X-Name-Last: Andrade
Author-Name: Pedro Bação
Author-X-Name-First: Pedro
Author-X-Name-Last: Bação
Title: Dynamic effects of financial development on economic activity
Abstract: 
 In this article, we provide evidence of the dynamic effects of financial development on a group of key macroeconomic variables, namely, output, consumption, investment, inflation, money, the interest rate and the exchange rate. As the measure of financial development we use a new broad measure of financial development instead of the narrow measures usually employed in the related literature. Another novelty is that we estimate the dynamic effects of financial development on economic activity in the context of a panel vector autoregressive model, comprising 36 countries observed in the period 1983–2019. Our results suggest that financial development has a positive impact on output, investment, and consumption. The results reported in this article also support the proposition that the benefits from financial development are larger in economies where the financial system is market-based. These results survive a battery of robustness checks.
Journal: Applied Economics
Pages: 3329-3346
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114994
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114994
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:29:p:3329-3346



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2114998_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hao Wei
Author-X-Name-First: Hao
Author-X-Name-Last: Wei
Author-Name: Linlin Deng
Author-X-Name-First: Linlin
Author-X-Name-Last: Deng
Author-Name: Peng Zhou
Author-X-Name-First: Peng
Author-X-Name-Last: Zhou
Title: The impact of globalization on domestic employment
Abstract: 
 Immigrants and offshore workers become important disturbing factors of domestic employment in the globalized economy. In this study we build a model with this feature to test how the three groups of workers in the labour force interact using a panel data of 155 countries over the period 1990–2015. We find that while immigrants replaced native workers (especially highly skilled ones), offshore workers who produce intermediate input imports do not. The productivity effect of offshoring is stronger for developed economies while the substitution effect of immigration is stronger for developing countries. Furthermore, the productivity effects of immigration and offshoring are stronger when governments impose less restrictions on international trade and domestic labour market.
Journal: Applied Economics
Pages: 3390-3403
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114998
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114998
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:29:p:3390-3403



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115000_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Debarati Basu
Author-X-Name-First: Debarati
Author-X-Name-Last: Basu
Author-Name: Shabana Mitra
Author-X-Name-First: Shabana
Author-X-Name-Last: Mitra
Author-Name: Nishant Kumar Verma
Author-X-Name-First: Nishant Kumar
Author-X-Name-Last: Verma
Title: Mitigating credit risk: modelling and optimizing co-insurance in loan pricing
Abstract: 
 Despite large-scale financial development and banks being the most important credit source globally, banking continues to be plagued by asymmetric information. This uncertainty makes credit risk assessment decisions complex and expensive. In this context, we show how discretionary borrower characteristics, such as the borrower’s network (which can co-insure), help mitigate risk and reduce costs by altering lending decisions. The literature on loan pricing remains focused on objective credit scoring models, while the network literature remains empirical, and borrower based. We fill this void by being the first to theoretically model the lender’s internal decision-making problem when borrowers display discretionary default risk-mitigating attributes such as network strength. We find that the interest rate reduces as the network strength increases. As constraints set in and borrowing becomes more competitive, banks rely even more on network information to parse out better borrowers. Finally, banks substitute monitoring effort with network strength for a more feasible interest rate. This will increase lending, even to borrowers outside the banks’ purview earlier.
Journal: Applied Economics
Pages: 3422-3441
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115000
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115000
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:29:p:3422-3441



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2114993_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Timo Bettendorf
Author-X-Name-First: Timo
Author-X-Name-Last: Bettendorf
Author-Name: Axel Jochem
Author-X-Name-First: Axel
Author-X-Name-Last: Jochem
Title: TARGET balances in the euro area: the case of Germany
Abstract: 
 Applying a BVAR model, the present paper first identifies the possible drivers of Germany’s TARGET claims. In this context, in terms of potential causes, a distinction is made between a rise in the global risk assessment, tensions within the euro area, and European monetary policy. It becomes evident that the TARGET flows between 2015 and 2017 can be ascribed in large part to monetary policy and to a minor extent to the risk assessment within the euro area. At the peak of the European debt crisis between 2010 and mid-2012, the TARGET flows were affected by uncertainty in the euro area as a dominant factor, although global factors also played a key role according to the model. The BVAR model we use opens up the possibility of studying the causes of current fluctuations in Germany’s TARGET claims.
Journal: Applied Economics
Pages: 3317-3328
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114993
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114993
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:29:p:3317-3328



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2114999_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Kwesi Arthur
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Kwesi Arthur
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: The influence of economic policy uncertainty shocks on art market
Abstract: 
 We contribute to the literature by studying the impact of economic policy uncertainty shocks on returns in the global art market, the global paintings market and the U.S.A art market from 1998:Q1 to 2018:Q3. Based on the frequency domain Granger causality test and continuous wavelets analysis, the results show that an increase in policy uncertainty shocks significantly reduces returns on art and paintings and that the effect is stronger during extreme volatility periods. Policy implications are derived at the end of the article.
Journal: Applied Economics
Pages: 3404-3421
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114999
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114999
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:29:p:3404-3421



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2114996_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xi Deng
Author-X-Name-First: Xi
Author-X-Name-Last: Deng
Author-Name: Wenlin Tang
Author-X-Name-First: Wenlin
Author-X-Name-Last: Tang
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Zhanming Xing
Author-X-Name-First: Zhanming
Author-X-Name-Last: Xing
Title: Influencing factors of China’s direct investment in RCEP countries: evidence from panel quantile regression
Abstract: 
 This article investigates the influencing factors of China’s outward foreign direct investment (OFDI) in RCEP countries across quantiles. We apply a panel quantile regression to seek the factors that influence China’s OFDI in RCEP countries with the most and least OFDI from China. Our findings are outlined as follows. First, influencing factors of China’s OFDI in RCEP countries have significant heterogeneity across quantiles. More specifically, China’s trade exports (EXP) to RCEP countries have the strongest positive impact on promoting China’s OFDI in RCEP countries, and the strongest positive impact of trade exports on China’s OFDI occurs in RCEP countries with less China’s OFDI. Second, The higher the level of political stability (HP) of RCEP countries with more China’s OFDI, the more China’s OFDI they attract, while in RCEP country with the least China’s OFDI and changes in political stability will not have a significant impact on China’s OFDI. Third, in RCEP countries with less China’s OFDI, a higher level of labour resource endowment (LAB) has a stronger effect on attracting China’s OFDI. Overall, our findings provide policymakers more targeted references for tapping the potential of China’s OFDI in RCEP countries.
Journal: Applied Economics
Pages: 3347-3364
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114996
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114996
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:29:p:3347-3364



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2114997_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zekeriya Yildirim
Author-X-Name-First: Zekeriya
Author-X-Name-Last: Yildirim
Title: Spillover effects of US uncertainty: does the type of US uncertainty matter?
Abstract: 
 This study investigates the spillover effects of US uncertainty shocks on 8 emerging market (EM) economies using a two-country VAR model. The study considers four different types of US uncertainty, namely, (i) financial, (ii) macroeconomic, (iii) economic policy and (iv) aggregate uncertainty. Then, the study compares the spillover effects of four US uncertainty measures on EMs. The main findings are as follows: (1) US uncertainty shocks negatively affect EMs. (2) The spillover effects rely on the source of US uncertainty and vary across EMs. (3) EM financial conditions play a significant role in transmitting the effects of US uncertainty shocks to the real economies of EMs. These findings suggest that EM policy-makers should be aware of the sources of US uncertainty shocks and react accordingly to such shocks.
Journal: Applied Economics
Pages: 3365-3389
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114997
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114997
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:29:p:3365-3389

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115450_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Makoto Muto
Author-X-Name-First: Makoto
Author-X-Name-Last: Muto
Author-Name: Tamotsu Onozaki
Author-X-Name-First: Tamotsu
Author-X-Name-Last: Onozaki
Author-Name: Yoshitaka Saiki
Author-X-Name-First: Yoshitaka
Author-X-Name-Last: Saiki
Title: Regional Synchronization during Economic Contraction: The Case of the U.S. and Japan
Abstract: 
 Two decades of studies have found significant regional differences in the timing of transitions in national business cycles and their durations. Earlier studies partly detect regional synchronization during business cycle expansions and contractions in Europe, the United States, and Japan. We examine this possibility by applying a sophisticated method for identifying the time-varying degree of synchronization to regional business cycle data in the U.S. and Japan. The method is prominent in nonlinear sciences but has been infrequently applied in business cycle studies. We find that the degree of synchronization in regional business cycles increased during contractions and decreased during expansions throughout the period under study. Such asymmetry between the contraction and expansion phases of a business cycle will contribute to our better understanding of the phenomenon of business cycles.
Journal: Applied Economics
Pages: 3472-3486
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115450
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115450
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:30:p:3472-3486



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wolfgang Maennig
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Maennig
Author-Name: Steffen Q. Mueller
Author-X-Name-First: Steffen Q.
Author-X-Name-Last: Mueller
Title: Game outcome uncertainty revisited – a clustering analysis of team-specific game attendance predictions
Abstract: 
 We provide evidence for heterogeneous game outcome uncertainty (GOU) effects across teams in Major League Baseball. Using attendance data from 2013 to 2019, we explore functional data clustering techniques and allow for nonlinear relationships to detect common patterns in predictive margins of team-specific winning probability. As a central result, we identify five groups of teams with similar GOU effects. However, only a few teams show GOU effects that resemble the typical hump shape that is postulated by the uncertainty of outcome hypothesis; the largest cluster is comprised of teams with fans whose attendance behaviour is relatively insensitive to differences in GOU.
Journal: Applied Economics
Pages: 3487-3497
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115451
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115451
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:30:p:3487-3497



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gloria Claudio-Quiroga
Author-X-Name-First: Gloria
Author-X-Name-Last: Claudio-Quiroga
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Andoni Maiza-Larrarte
Author-X-Name-First: Andoni
Author-X-Name-Last: Maiza-Larrarte
Title: Persistence and trends in CO2 emissions in Africa: is Chinese FDI behind these features?
Abstract: 
 In this article, we investigate the statistical features of the CO2 emissions and CO2 emissions per capita in a group of 45 African countries by looking at their degree of persistence and also testing for the existence of trends in the data. In addition, we also investigate if this level of emissions is related to the Chinese FDI in Africa. The results are very heterogeneous across countries, observing orders of integration statistically below 1 in a group of countries; in others, the majority of them, the values are around 1, while for some others, the degree of integration is statistically significantly above 1. Linear time trends are observed in approximately half of the countries. These results imply that, in the long term, public measures to reduce CO2 emissions may be required in the majority of the countries since in the event of shocks the series will not return by themselves to their original levels. If we look at Chinese FDI in these countries, we observe that there seems to be no relationship between the Chinese investment in Africa and the CO2 emission persistence, though this result needs to be contrasted in future research.
Journal: Applied Economics
Pages: 3498-3513
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115452
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115452
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:30:p:3498-3513



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tianyu Wang
Author-X-Name-First: Tianyu
Author-X-Name-Last: Wang
Author-Name: Chuanyong Zhang
Author-X-Name-First: Chuanyong
Author-X-Name-Last: Zhang
Author-Name: Zhejin Zhao
Author-X-Name-First: Zhejin
Author-X-Name-Last: Zhao
Title: Gender differences in the housing decisions of married-couple families: evidence from urban China
Abstract: 
 This paper investigates the role of gender of the household decision maker in the housing decisions of married-couple families. Using data across urban China from the China Labour-force Dynamic Survey during 2012–2016, the paper shows that married-couple families with female decision makers have higher rates of homeownership. We infer that housing provides more psychological and financial security for women than men. In addition, female decision makers tend to buy smaller houses and have higher returns on housing assets, which could be caused by the fact that female decision makers are more concerned about the members of their nuclear family, especially their kids. The main results are robust to control for the effects of the socioeconomic status of household members. These findings aid in understanding the role of gender in the housing market and offer guidance for better policies to boost a more efficient housing supply.
Journal: Applied Economics
Pages: 3527-3545
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115454
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115454
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:30:p:3527-3545



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115453_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zuhui Huang
Author-X-Name-First: Zuhui
Author-X-Name-Last: Huang
Author-Name: Yanzhou Liu
Author-X-Name-First: Yanzhou
Author-X-Name-Last: Liu
Author-Name: Yuxiang Wang
Author-X-Name-First: Yuxiang
Author-X-Name-Last: Wang
Author-Name: Songqing Jin
Author-X-Name-First: Songqing
Author-X-Name-Last: Jin
Title: Does migration experience reduce villagers’ social capital? Evidence from rural China
Abstract: 
 In this study, we examine the impact of migration experience on return migrant’s social capital using household survey data from rural China. We first develop a simple model to describe rural household’s decision to invest in social capital and then empirically examine how migration experience affects social capital using village-level natural disasters as instrumental variables for migration experience. Our results show that villagers’ migration experience reduces both structural social capital and cognitive social capital. Compared with those who never worked out of their native villages, return migrants would practice fewer social interactions, information communication, trust building and reciprocal behaviours with relatives. We provide suggestive evidence that the decline in social capital may be caused by the higher expected mobility of return migrants.
Journal: Applied Economics
Pages: 3514-3526
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115453
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115453
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:30:p:3514-3526



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115449_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shixuan Yu
Author-X-Name-First: Shixuan
Author-X-Name-Last: Yu
Author-Name: Lingang Zhang
Author-X-Name-First: Lingang
Author-X-Name-Last: Zhang
Title: The impact of patent information disclosure on the stock returns of high-tech corporates: an event study
Abstract: 
 For high-tech listed companies, the disclosure of patent information in financial statements influences firms’ value. Using the event study method, we examine the stock market’s reaction to patent information in financial statements. After measuring patent information on six items and dividing the level of patent information disclosure into the high group and low group, the results show that patent information disclosure is associated with changes in stock return. In addition, the impact of patent information disclosure on the stock return of a firm depends on the credibility of the voluntarily disclosed patent information or its quality. When the credibility is high, the degree of patent information disclosure has a positive impact on the stock return, while when the credibility is low, the degree of patent information disclosure has a negative impact on the stock return. The findings shed light on the selection of patent information disclosure strategies and provide a basis for future scholars to study improvements in stock market efficiency.
Journal: Applied Economics
Pages: 3458-3471
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115449
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115449
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:30:p:3458-3471



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115001_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Haoyu Hu
Author-X-Name-First: Haoyu
Author-X-Name-Last: Hu
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Author-Name: Ge Xin
Author-X-Name-First: Ge
Author-X-Name-Last: Xin
Title: Enrollment in public pension program and household land transfer behaviour: Evidence from rural China
Abstract: 
 Although farmland transfer is a radical solution to the problem of sustainable development of the land rental market in China, there is insufficient research that attempted to quantitatively explore the determinants of land transfer behaviour, particularly the effects of enrolment in public pension programs. In this paper, we examine how enrolment in the recently established and expanded New Rural Pension Scheme (NRPS) can affect land transfer decisions among the age-eligible and age-ineligible rural residents. Specifically, our study employs balanced panel data from the first two waves of the China Family Panel Studies (CFPS) in the year 2010 and 2012. It reveals that, although the enrolment in the public pension system increases the scale of farmland transfer among age-eligible people, this effect is not shown among age-ineligible members. Moreover, for households with members over the age of 60, the positive income effects are concentrated among farmers from low-income family; for other groups, the heterogeneous outcomes are insignificant. These estimates may offer insights for the dynamic adjustments of the public pensions for the elderly population and for enhancing the vitality of land transfer in rural China.
Journal: Applied Economics
Pages: 3443-3457
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115001
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115001
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:30:p:3443-3457

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2117776_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Thomas Patten Krumel
Author-X-Name-First: Thomas Patten
Author-X-Name-Last: Krumel
Author-Name: Corey Goodrich
Author-X-Name-First: Corey
Author-X-Name-Last: Goodrich
Title: Meatpacking working conditions and the spread of COVID-19
Abstract: 
 This paper explores how working conditions in meatpacking plants contributed to the spread of the COVID-19 virus. Data from the Occupational Information Network was used to construct a set of industry-level working condition variables and compare meatpacking to the sample of other manufacturing industries in our comparison group. This novel approach showed that proximity to others in the meatpacking industry is likely the main factor influencing the spread of COVID-19, more than three standard deviations higher in meatpacking than our comparison sample of other manufacturing industries. Subsequently, we performed a county-level analysis on COVID-19 spread, comparing rural counties with a large share of meatpacking workers to nonmetropolitan counties that were similarly dependent on other single manufacturing industries, using the time frame of mid-March to the end of 2020. In mid-April 2020, COVID-19 cases in meatpacking-dependent rural counties rose to more than 12 times compared to rural counties dependent on other single manufacturing industries. This difference disappeared completely by mid-July and held steady throughout the year. We demonstrate that our results are robust to a battery of robustness checks ruling out the set of plausible alternative hypotheses, including examining data on COVID-19 spread among meatpacking workers directly.
Journal: Applied Economics
Pages: 3637-3660
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117776
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117776
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:31:p:3637-3660



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2117272_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tannista Banerjee
Author-X-Name-First: Tannista
Author-X-Name-Last: Banerjee
Author-Name: HaiYue Zhao
Author-X-Name-First: HaiYue
Author-X-Name-Last: Zhao
Title: Eating out and eating right: Understanding the relationship between food consumption decision and education using comprehensive consumer level data
Abstract: 
 The relation between education and health has been well established in the literature, especially as it pertains to chronic diseases like obesity. But, due to data limitations, most extant research lacks a direct explanation of unhealthy eating behaviour. The current study examines this relationship among a diverse set of compositional place indicators with direct measurement of healthy and unhealthy eating behaviour across census block groups in the United States. We empirically examine the relationships between education, obesity, and the number of patrons at healthy and unhealthy eating establishments in the United States. Results obtained through various alternative empirical models show the effect of education on unhealthy eating habits. People who reside in areas with low education show higher frequencies of unhealthy eating behaviours. We also found that the number of reviews is essential to both healthy and unhealthy restaurants. Furthermore, we observed a significant change in food choices on weekdays vs. weekends. On weekends, consumers are less sensitive about the price for both healthy and unhealthy restaurants. These results contribute to previous studies on the reduced health status in low-educated geographical locations. The results point to important policy implications for mitigating obesity and improving healthy eating by geographical variation
Journal: Applied Economics
Pages: 3609-3622
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117272
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117272
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:31:p:3609-3622



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: José Alves
Author-X-Name-First: José
Author-X-Name-Last: Alves
Title: Are fiscal consolidation episodes helpful for public sector efficiency?
Abstract: 
 We assess the consequences of fiscal consolidation episodes on public sector efficiency (scores) for 35 OECD countries for the 2007–2020 period. We find that fiscal consolidations improve public sector efficiency and results are robust across efficiency models. Moreover, peripheral euro-area economies and economies with debt-to-GDP ratios between 60% and 90% are those whose public sector efficiency scores improve more when fiscal consolidation episodes occur. The evidence that fiscal consolidations enhance spending efficiency is an additional argument for fiscal consolidations, from a policy perspective.
Journal: Applied Economics
Pages: 3547-3560
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2115455
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115455
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:31:p:3547-3560



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2115973_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhiyang Hui
Author-X-Name-First: Zhiyang
Author-X-Name-Last: Hui
Author-Name: Hongyan Fang
Author-X-Name-First: Hongyan
Author-X-Name-Last: Fang
Title: Government controlling ownership and CEO compensation incentives: evidence from China
Abstract: 
 This paper investigates the relationship between government-controlling ownership and CEO compensation incentives in China, using a comprehensive evaluation of CEO pay-performance sensitivity (PPS). We find that government-controlling ownership weakens CEO PPS, with PPS being around 6 lower for CEOs in state-owned enterprises (SOEs) than CEOs in non-state-owned enterprises (non-SOEs), representing a reduction of around 14% for a CEO with the average level of PPS. The results sustain after using privatization as the experiment setting wherein firms’ ultimate controllers changed from government owners to private owners. Moreover, the negative influence of government controlling ownership on CEO compensation incentives is more prominent in SOEs with a higher level of government ownership or a lower hierarchy government as the controller. We also explore the association between CEO incentives and firm performance and find that PPS in SOEs is more important in association with firms’ stock performance than non-SOEs. Results in this paper extend studies on the influence of government controlling ownership on CEO compensation incentives, an issue that is caught much attention in the ongoing reform of China’s SOEs.
Journal: Applied Economics
Pages: 3561-3579
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2115973
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115973
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:31:p:3561-3579



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174933_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ilhang Shin
Author-X-Name-First: Ilhang
Author-X-Name-Last: Shin
Author-Name: Hansol Lee
Author-X-Name-First: Hansol
Author-X-Name-Last: Lee
Title: Do related party transactions promote or depress a firm’s investment in organization capital?
Abstract: 
 We examine whether related party transactions influence a firm’s investment in organization capital, using a sample of Korean firms from 2001 to 2020. Given that the high magnitude of related party transactions increases a firm’s dependence on the captive market within related parties, we hypothesize that a firm’s incentives to invest in intangible capital are low when there are heavy related party transactions. We find the negative relationship between related party transactions and a firm’s investment in organization capital, consistent with the notion that related party transactions significantly impact the firm’s operations. We also find that such a relationship is more pronounced for firms in the high-tech industry and those that are financially weak.
Journal: Applied Economics
Pages: 3661-3674
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2023.2174933
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174933
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:31:p:3661-3674



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2116390_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Hesam Ghodsi
Author-X-Name-First: Hesam
Author-X-Name-Last: Ghodsi
Author-Name: Muris Hadzic
Author-X-Name-First: Muris
Author-X-Name-Last: Hadzic
Author-Name: Hardik Marfatia
Author-X-Name-First: Hardik
Author-X-Name-Last: Marfatia
Title: Asymmetric relationship between money supply and house prices in states across the U.S
Abstract: 
 There is an intricate link between money supply and house prices. However, housing markets have downward price rigidity, different supply elasticities, and changing market sentiments. Thus, the response of house prices to expansionary monetary policy shocks differs from contractionary shocks. We use an asymmetric/nonlinear autoregressive distributive lag (NARDL) approach to estimate the asymmetric effects of money supply on house prices in each state in the U.S. a practice that makes our study differ from previous research. The house price growth in 38 states responds symmetrically to money supply changes in the short run. However, in 48 states, positive changes in money supply impact house prices differently from negative changes in the short run. In addition, there is a long-run relationship between money supply and house prices, but only when we account for asymmetries.
Journal: Applied Economics
Pages: 3580-3608
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2116390
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2116390
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:31:p:3580-3608



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2117775_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tian Wang
Author-X-Name-First: Tian
Author-X-Name-Last: Wang
Author-Name: Cangfeng Wang
Author-X-Name-First: Cangfeng
Author-X-Name-Last: Wang
Title: Innovation activity and exports by destination
Abstract: 
 This article examines the effect of innovation activity on exports by destination using firm-level data from two India surveys collected by the World Bank. Both OLS regressions and IV estimations using innovation-reason indicators as the exogenous variation in innovation activity show the following findings. Firms with spending on R&D activity increase exports to richer destinations and consequently increase total exports than those without. This suggests that firms in lower-middle-income countries like India need to engage in R&D activity to satisfy the quality requirement in richer countries and increase exports. However, there is no consistent evidence that firms with a new process/product have such a causal effect. The contrast may reflect that, in poorer countries like India, instead of introducing new processes/products, spending on formal R&D activity is one more appropriate measure of innovation activity for the international market.https://datahelpdesk.worldbank.org/knowledgebase/articles/906519
Journal: Applied Economics
Pages: 3623-3636
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117775
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117775
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:31:p:3623-3636

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2118221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Yutong Yao
Author-X-Name-First: Yutong
Author-X-Name-Last: Yao
Title: Does anti-corruption contribute to improving environmental pollution in China?
Abstract: 
 We examine the effects of anti-corruption efforts on local environmental pollution in China. Using data for China from 2003 to 2017, we find that anti-corruption efforts contribute to reduce local environmental pollution. Second, we show the two possible channels through which the anti-corruption efforts reduce local environmental pollution: political connection effects and deterrent effects. Finally, our results show that the effects of anti-corruption efforts on local environmental pollution are stronger in cities located south of the ‘Qin ling Mountains-Huai he River’, in cities with stronger government and public concern for the environment. Our main results pass a series of robustness tests. Overall, we offer novel evidence that anti-corruption efforts contribute to improving environmental quality.
Journal: Applied Economics
Pages: 3766-3787
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118221
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118221
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:32:p:3766-3787



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2118222_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Adrian Zoicas-Ienciu
Author-X-Name-First: Adrian
Author-X-Name-Last: Zoicas-Ienciu
Author-Name: Maria Miruna Pochea
Author-X-Name-First: Maria Miruna
Author-X-Name-Last: Pochea
Title: What drives trend-following profits in stocks? The role of the trading signals’ volatility
Abstract: 
 We document the influence of stock volatility on trend-following profits for a global sample of 1618 blue-chip stocks, across 43911 evaluation subperiods (2004–2018). We use the price sensitivity of trend signals (i.e. signal volatility) to isolate the detrimental impact of high stock volatility manifested through excessive/inefficient trading. Despite its almost null correlation with the stocks’ mean-variance characteristics, the signal volatility greatly complements them in explaining the time series variation in trend-following excess returns. The results hold for both the buy and sell excess returns, are robust across stock markets, and conserve after considering explicit and implicit trading costs. Investors can use ex postsignal volatility estimates as a valid criterion to choose across potential trading rules, according to their specific levels of risk aversion and transaction costs.
Journal: Applied Economics
Pages: 3788-3805
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118222
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118222
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:32:p:3788-3805



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2117781_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tenkir Seifu Legesse
Author-X-Name-First: Tenkir Seifu
Author-X-Name-Last: Legesse
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Ying Wang
Author-X-Name-First: Ying
Author-X-Name-Last: Wang
Author-Name: Jiqiang Tang
Author-X-Name-First: Jiqiang
Author-X-Name-Last: Tang
Author-Name: Zhen Wu
Author-X-Name-First: Zhen
Author-X-Name-Last: Wu
Title: The impact of economic policy uncertainty and financial development on the sensitivity of corporate cash holding to cash flows
Abstract: 
 The paper examines how economic policy uncertainty and financial development affect a firm’s cash-holding policy before and after the global financial crisis. Using Chinese nonfinancial firm data from 1997 to 2018, we obtain three main findings. First, economic policy uncertainty increases corporate cash holdings and its sensitivity to operating cash flows. Second, financial institution and market developments reduce corporate cash-holdings’ cash flow sensitivity. Third, the impact of economic policy uncertainty on corporate cash-holdings’ sensitivity to operating cash flows decreases with financial development. Firms adjust their cash-holding policy in response to changes in economic policy uncertainty and financial development, indicating that macroeconomic factors determine the precautionary motive for holding cash.
Journal: Applied Economics
Pages: 3728-3746
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117781
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117781
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:32:p:3728-3746



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2117782_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yunxi Tang
Author-X-Name-First: Yunxi
Author-X-Name-Last: Tang
Author-Name: Kung-Cheng Ho
Author-X-Name-First: Kung-Cheng
Author-X-Name-Last: Ho
Author-Name: Ji (George) Wu
Author-X-Name-First: Ji (George)
Author-X-Name-Last: Wu
Author-Name: Liping Zou
Author-X-Name-First: Liping
Author-X-Name-Last: Zou
Author-Name: Shouyu Yao
Author-X-Name-First: Shouyu
Author-X-Name-Last: Yao
Title: Directors and officers liability insurance and maturity mismatch: evidence from China
Abstract: 
 We investigate the impact of the purchase of Directors’ and Officers’ liability insurance (D&O insurance) on a firm’s risk-taking behaviour in China, measured by the firm’s maturity mismatch ratio. Using a unique manually collected dataset, we find a significant positive relationship between a firm’s purchase of D&O insurance and the firm’s maturity mismatch ratio, which supports the moral hazard theory. The mechanisms of our main finding are corresponding internal and external monitoring, in which the main finding is only significant for firms under weak monitoring. Our result remains significant after employing several approaches to alleviate potential endogeneity concerns, including an alternative sample and the sensitivity test model. Our paper sheds some extra light on the issue related to D&O insurance in a country with inadequate internal supervision and weak investor protection and the determinant of a firm’s maturity mismatch ratio.
Journal: Applied Economics
Pages: 3747-3765
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117782
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117782
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:32:p:3747-3765



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2117779_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hanan Amin Mohamed
Author-X-Name-First: Hanan Amin
Author-X-Name-Last: Mohamed
Title: The role of digital transformation in the socio-economic recovery post COVID-19
Abstract: 
 Several measures have been taken to reduce the impact of COVID-19 pandemic. One of these measures is the broad digital transformation that has rapidly and unexpectedly forced the deployment of digital technologies into corporations’ business models and organizational structures. This digital transformation has affected all the socio-economic aspects. In response to the COVID-19 global pandemic, this paper explores the impact of the implementation of digital transformation on the socio-economic recovery by employing cross-sectional regression analysis on 99 countries in year 2020. The paper analyzes the impact of digital transformation on each of economic growth, health care, and income inequality. The results reveal that the digital transformation has a positive and significant impact on the GDP per capita in which a 1% increase in digital transformation results in 1.52% increase in GDP per capita, a positive and significant impact on income equality in which a 1% increase in digital transformation leads to 0.05% increase in income equality, and a negative and significant impact on infant mortality rate, in which a 1% increase in digital transformation results in 0.85% decrease in infant mortality rate which reflects its positive impact on the health care. Hence, the digital transformation has a positive and significant effects on different socio-economic aspects.
Journal: Applied Economics
Pages: 3716-3727
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117779
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117779
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:32:p:3716-3727



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2117778_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Junlin Mu
Author-X-Name-First: Junlin
Author-X-Name-Last: Mu
Author-Name: Lipeng Yan
Author-X-Name-First: Lipeng
Author-X-Name-Last: Yan
Author-Name: Shanshan Wu
Author-X-Name-First: Shanshan
Author-X-Name-Last: Wu
Title: Growing with inequality: a DSGE model with heterogeneous human capital and endogenous economic growth
Abstract: 
 We try to explain the simultaneous increases in economic growth and income inequality in China with a heterogeneous endogenous growth-based DSGE model. It is found that: First, our model can simulate the positive correlation between economic growth and income inequality in China. China’s economic development has created better conditions and incentives for the accumulation of human capital of workers with high initial human capital, thus stimulating them to contribute more to economic growth, but this widens the income inequality simultaneously. Second, the change in economic growth and the change in income inequality also exhibit a positive correlation under the influence of various policy shock. Any shock that raises economic growth, such as different types of technology shock and investment shock (after 8 quarters), will correspondingly widen income inequality. Conversely, any shock that reduces economic growth, such as fiscal spending shock, interest rate shock and investment shock (before 8 quarters) will correspondingly reduce income inequality. Third, the government’s preference for workers with high initial human capital in the implementation of macroeconomic policies determines the positive correlation between the change in economic growth and in income inequality. Workers with high initial human capital are central to the effectiveness of macroeconomic policies.
Journal: Applied Economics
Pages: 3689-3715
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117778
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117778
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:32:p:3689-3715



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2117777_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alessandro Cremaschini
Author-X-Name-First: Alessandro
Author-X-Name-Last: Cremaschini
Author-Name: Antonio Punzo
Author-X-Name-First: Antonio
Author-X-Name-Last: Punzo
Author-Name: Eliano Martellucci
Author-X-Name-First: Eliano
Author-X-Name-Last: Martellucci
Author-Name: Antonello Maruotti
Author-X-Name-First: Antonello
Author-X-Name-Last: Maruotti
Title: On stylized facts of cryptocurrencies returns and their relationship with other assets, with a focus on the impact of COVID-19
Abstract: 
 This study provides an empirical analysis on the main univariate and multivariate stylized facts iin return series of the two of the largest cryptocurrencies, namely Ethereum and Bitcoin. A Markov-Switching Vector AutoRegression model is considered to further explore the dynamic relationships between cryptocurrencies and other financial assets. We estimate the presence of volatility clustering, a rapid decay of the autocorrelation function, an excess of kurtosis and multivariate little cross-correlation across the series, except for contemporaneous returns. The analysis covers the pandemic period and sheds lights on the behaviour of cryptocurrencies under unexpected extreme events.
Journal: Applied Economics
Pages: 3675-3688
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117777
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117777
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:32:p:3675-3688

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2120179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Humberto Brea-Solís
Author-X-Name-First: Humberto
Author-X-Name-Last: Brea-Solís
Author-Name: Emili Grifell-Tatjé
Author-X-Name-First: Emili
Author-X-Name-Last: Grifell-Tatjé
Title: Winners and losers of the productivity gains of the American agricultural sector
Abstract: 
 The aim of this study is twofold. First, to identify who benefited from the productivity growth of the American agricultural sector from 1960 to 2004. Second, to measure the relationship between changes in productivity, its distribution, and the evolution of variables linked with climate change. This study shifts the attention from the drivers of productivity change to how it is distributed. Our results show that the stakeholders of the US agricultural sector do not benefit equally from productivity growth. Moreover, it provides empirical evidence that supports the treadmill theory about how technological innovation pushes some farmers out of the market. Concerning the relationship between extreme weather variables (precipitation, temperature, and droughts) and the distribution of productivity change, this depends on the geographical situation of the state. Some stakeholders might be the winners of anomalous climate events in some regions of the US. These findings suggest that reaching a consensus on initiatives to stop climate change will be extremely difficult.
Journal: Applied Economics
Pages: 3915-3930
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120179
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120179
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:33:p:3915-3930



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2118962_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Vaseem Akram
Author-X-Name-First: Vaseem
Author-X-Name-Last: Akram
Author-Name: Badri Narayan Rath
Author-X-Name-First: Badri Narayan
Author-X-Name-Last: Rath
Author-Name: Bibhudutta Panda
Author-X-Name-First: Bibhudutta
Author-X-Name-Last: Panda
Title: Convergence Analysis of Social Sector Expenditure and its Components: Evidence from the Indian States
Abstract: 
 This paper examines the convergence of public expenditure and its major components using sub-national data from India. By employing the panel club convergence test, the paper finds convergence in per capita public expenditure across Indian states implying that distribution policies of public expenditure are effective and fair across the states. Subsequently, the convergence of per capita total social sector expenditure and its major components are studied. The results support the evidence of convergence for total social sector expenditures and in the case of its components, we find that six of the nine components display regional convergence. Three components, namely, per capita education, sports, art and culture expenditure; per capita social security and welfare expenditure; and per capita rural development expenditure display the evidence of divergence and the presence of multiple transition paths. From the policy perspective, these three components of social expenditures need greater attention by the state governments as these expenditures are important for social cohesion, sustainable development, and achieving millennium development goals.
Journal: Applied Economics
Pages: 3850-3862
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118962
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118962
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:33:p:3850-3862



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2118225_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhen Wang
Author-X-Name-First: Zhen
Author-X-Name-Last: Wang
Author-Name: Mingzhi Hu
Author-X-Name-First: Mingzhi
Author-X-Name-Last: Hu
Author-Name: Jie Chen
Author-X-Name-First: Jie
Author-X-Name-Last: Chen
Title: Land redevelopment and migrant inflows in Chinese cities
Abstract: 
 This paper investigates how land redevelopment is associated with a city’s potential to attract migrants. Based on empirical analysis conducted by using over one million records of land transaction data between 2008 and 2018 in Chinese cities, we observe that cities with a larger ratio of redevelopment land in the total area of land supply on average have attracted more of the migrant population. Moreover, a high proportion of redevelopment area for public services and infrastructure in the total land redevelopment area can further attract migrants. We also find a larger effect of land redevelopment in attracting migrant inflows in less developed regions than developed regions. These findings suggest the advantages of intensive urban strategy (‘compact urban’) compared with extensive urban strategy (‘urban sprawl’) in attracting migrant population. Implications of these findings for urban governancear are discussed.
Journal: Applied Economics
Pages: 3833-3849
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118225
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118225
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:33:p:3833-3849



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2118224_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ali Saeedi
Author-X-Name-First: Ali
Author-X-Name-Last: Saeedi
Title: A High-Dimensional Approach to Predicting Audit Opinions
Abstract: 
 This study develops a model for the prediction of audit reports. The research data comprises 57881 firm-year observations for public companies listed on the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and the NASDAQ from 2000 to 2019. The dataset consists of a high dimension of predictor variables (105 variables), including accounting-based, ownership concentration, executive compensation, market price, analysts rating, macroeconomic, and audit-related variables. A commercial version of Gradient Boosting, called TreeNet®, is used to build the prediction model. The results indicate that the developed model demonstrates high performance in predicting going-concern reports with an accuracy rate of 97.5%.
Journal: Applied Economics
Pages: 3807-3832
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118224
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118224
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:33:p:3807-3832



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2119200_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abigail Cormier
Author-X-Name-First: Abigail
Author-X-Name-Last: Cormier
Author-Name: Austin F. Eggers
Author-X-Name-First: Austin F.
Author-X-Name-Last: Eggers
Author-Name: Peter a Groothuis
Author-X-Name-First: Peter a
Author-X-Name-Last: Groothuis
Author-Name: Kurt W. Rotthoff
Author-X-Name-First: Kurt W.
Author-X-Name-Last: Rotthoff
Title: The impact of basketball malfeasance on the university and its rankings
Abstract: 
 Collegiate sports have a profound impact on a university beyond athletics. Successful athletics have been shown to have a positive impact on the institution. Likewise, athletic malfeasance has been shown to negatively impact the university. We analyse tournament bans in Division I college basketball as a signal for university quality in rankings (U.S. News and World Report’s peer rankings), student quality, and other university measures. We find evidence that following a postseason tournament ban, applications from students in the top ten percent of their high school class decrease, some evidence that academic test scores decrease, and some evidence that the amount of alumni donations decrease. These results suggest that an athletic department’s malfeasance leads to a decline in university quality. We do, however, find that peer rankings from faculty administrators fall the year of the ban, only to increase slightly two years after sanctions for athletic malfeasance.
Journal: Applied Economics
Pages: 3902-3914
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2119200
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2119200
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:33:p:3902-3914



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2118963_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Annalisa Cristini
Author-X-Name-First: Annalisa
Author-X-Name-Last: Cristini
Author-Name: Mara Grasseni
Author-X-Name-First: Mara
Author-X-Name-Last: Grasseni
Author-Name: Silvana Signori
Author-X-Name-First: Silvana
Author-X-Name-Last: Signori
Title: Can worker cooperatives stabilize employment and remain financially sound during a prolonged recession?
Abstract: 
 This paper uses financial accounting data of the universe of Italian worker cooperatives, from 2011 to 2018, to examine whether cooperatives were able to achieve employment stabilization in a period of prolonged recession. Since wages have experienced, in most of the period, a negative growth, we further consider whether wages’ downward flexibility had been sufficient to sustain employment stabilization and whether, under these circumstances, cooperatives’ financial solidity had weakened. Given the non-experimental setting, we proceed by defining a control group of conventional firms to which we compare the group of worker cooperatives. We find evidence that, relative to the control group, during negative demand shocks, worker cooperative contained employment drop and allowed a greater downward wage adjustment. Their profitability and equity ratio also fell by more than in the control group. We find significant-sector heterogeneity, especially in response to positive demand shocks; in Less Knowledge Intensive Services and in Constructions, which together comprise more than 70% of worker cooperatives, it is employment, rather than wages, that rises by more than in conventional firms. This suggests that in the aftermath of a prolonged recession most worker cooperatives chose to favour growth at the expense of members’ wage.
Journal: Applied Economics
Pages: 3863-3883
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118963
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118963
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:33:p:3863-3883



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2119199_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ripon Kumar Mondal
Author-X-Name-First: Ripon Kumar
Author-X-Name-Last: Mondal
Author-Name: Eliyathamby a Selvanathan
Author-X-Name-First: Eliyathamby a
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: Moazzem Hossain
Author-X-Name-First: Moazzem
Author-X-Name-Last: Hossain
Title: Rural versus urban food security in Bangladesh
Abstract: 
 Within contemporary global food security discourse, the difference in food security issues between rural and urban households has received scant attention. Since urban and rural livelihoods and lifestyles are different, we hypothesized that the determinants of food security between rural and urban households could also be different. This study is one of the first attempts to thoroughly examine the difference in food security between rural and urban households in Bangladesh. Using recent field survey data from Bangladesh, and applying the binary logistic model, firstly, we find that rural households are likely to be more food secure than urban households. Secondly, this study finds that the determinants of food security vary between rural and urban households. Hence, policymakers and administrators must understand the specific community-level conditions so that they can identify which of the key variables must be addressed in the development of programmes to improve food security both in rural and urban areas.
Journal: Applied Economics
Pages: 3884-3901
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2119199
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2119199
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:33:p:3884-3901

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2123103_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nermeen Shehata
Author-X-Name-First: Nermeen
Author-X-Name-Last: Shehata
Author-Name: Siva Nathan
Author-X-Name-First: Siva
Author-X-Name-Last: Nathan
Author-Name: Omar Farooq
Author-X-Name-First: Omar
Author-X-Name-Last: Farooq
Author-Name: Khaled Dahawy
Author-X-Name-First: Khaled
Author-X-Name-Last: Dahawy
Title: External audit and tax evasion: evidence from India
Abstract: 
 This paper aims to examine the relationship between voluntary external audit by privately held firms and tax evasion in India. We use data generated by the World Bank Enterprise Survey which is based on interviews conducted over 2013 and 2014 only. Our final sample includes 7,262 privately held Indian firms. Our research reports the following results for privately held companies in India: (1) Firms with voluntarily audited financial statements are more likely to evade taxes; (2) Firms that face financing constraints are more likely to have stronger relationship between voluntary external audit and tax evasion; (3) Firms operating in Indian states with better business environment (as measured by ease of doing business) are more likely to have weaker relationship between voluntary external audit and tax evasion.
Journal: Applied Economics
Pages: 4023-4036
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123103
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123103
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:34:p:4023-4036



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2120959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Luis Guirola
Author-X-Name-First: Luis
Author-X-Name-Last: Guirola
Author-Name: Javier J. Pérez
Author-X-Name-First: Javier J.
Author-X-Name-Last: Pérez
Title: The decoupling between public debt fundamentals and bond spreads after the European sovereign debt crisis
Abstract: 
 We contribute to the literature that documents empirically that the relationship between public debt fundamentals and sovereign bond spreads in Spain, France, and Italy (versus Germany) weakened after the 2010–2012 episode of sovereign debt markets’ significant distress. To construct our measure of public debt fundamentals, we build on the literature that combines the Value at Risk approach with the estimation of the correlation pattern of public debt dynamics’ macroeconomic determinants via Vector Auto Regressions (VARs) to estimate the probability distribution of alternative debt trajectories. Since we incorporate in the VAR new information in a sequential manner, we are able to retrieve time-varying probabilities that characterize the expected behaviour of debt at a given point in time in the future. We then empirically confront such probabilistic indicators with market-derived sovereign bond spreads.
Journal: Applied Economics
Pages: 3971-3979
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120959
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120959
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:34:p:3971-3979



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2121379_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jayadevan Cm
Author-X-Name-First: Jayadevan
Author-X-Name-Last: Cm
Author-Name: Nam Trung Hoang
Author-X-Name-First: Nam Trung
Author-X-Name-Last: Hoang
Author-Name: Subba Reddy Yarram
Author-X-Name-First: Subba Reddy
Author-X-Name-Last: Yarram
Title: Human capital and the middle-income trap revisited
Abstract: 
 Middle-income trap refers to the economic growth strategies that transition low-income countries into middle-income ones but fail to transition the middle-income countries into high-income countries. We observe the existence of a middle-income trap for upper-middle- and lower-middle-income countries. We examine the reasons for the middle-income trap using the Bayesian model averaging (BMA) and generalized method of moments (GMM). We also explore the transformation of middle-income economies into high-income economies using logistic, probit and Limited Information Maximum Likelihood (LIML) regression analyses. Random forest analysis is also used to check the robustness of the findings. BMA analysis shows that education plays an enabling role in high-income countries in determining economic growth, whereas the full potential of education is not fully utilized in middle-income countries. GMM estimations show that the education coefficient is positive and significant for high-income and middle-income countries. This implies that education plays a decisive positive role in achieving economic growth and gives a path to escape from the middle-income trap. However, the education coefficient for middle-income countries is approximately half that of high-income countries. Therefore, the findings of this study call for additional investment and focused strategies relating to human capital endowments.
Journal: Applied Economics
Pages: 4003-4022
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2121379
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2121379
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:34:p:4003-4022



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2120960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lihong Yu
Author-X-Name-First: Lihong
Author-X-Name-Last: Yu
Author-Name: Wenxiong Wang
Author-X-Name-First: Wenxiong
Author-X-Name-Last: Wang
Author-Name: Yongzheng Cui
Author-X-Name-First: Yongzheng
Author-X-Name-Last: Cui
Author-Name: Wei Zhou
Author-X-Name-First: Wei
Author-X-Name-Last: Zhou
Author-Name: Zitong Fu
Author-X-Name-First: Zitong
Author-X-Name-Last: Fu
Author-Name: Letian He
Author-X-Name-First: Letian
Author-X-Name-Last: He
Title: Influence of capital endowment on rural households’ willingness to pay for rural human settlement improvement: evidence from rural China
Abstract: 
 Studying the influence of capital endowment on rural households’ willingness to pay (WTP) for rural human settlement improvement (RHSI) will help to seek a breakthrough for implementing a rural environmental management payment system. According to Bourdieu’s practical theory, this study establishes a theoretical analysis model and research hypothesis of capital endowment (economic capital, cultural capital, and social capital) and rural households’ WTP for RHSI. This study uses the Double-Hurdle Model to empirically analyse the effect of capital endowment on rural households’ two-stage WTP for RHSI (the payment inclination and the willingness payment amount). This study found that capital endowment has a significant positive impact on rural households’ WTP for RHSI. Economic capital (annual household income, number of agricultural machinery), cultural capital (head of household’s education level, migrant work experience, and the degree of current affairs awareness), and social capital (moral restraint, interpersonal trust, and institutional trust) can significantly increase a rural household’s payment inclination and willingness payment amount. Accordingly, this study proposes policy recommendations to incorporate rural households’ interest demands into the development and implementation process of RHSI projects, and to strengthen the accumulation of the three types of capital endowments of rural households.
Journal: Applied Economics
Pages: 3980-3995
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120960
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120960
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:34:p:3980-3995



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2120958_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rongbing Huang
Author-X-Name-First: Rongbing
Author-X-Name-Last: Huang
Title: Auditing the environmental accountability of local officials and the corporate green response: evidence from China
Abstract: 
 Auditing the natural-resource asset accountability of local officials is an institutional innovation that China used to transform its mode of economic development from that of an ‘industrial civilization’ to an ‘ecological civilization’. This study investigated the effect of changes in the assessment of local officials for promotion (i.e. including environmental protection in the assessment, along with economic performance) on the green response of enterprises. To this end, a nationwide pilot project (2015–2017) involving the auditing of natural-resource assets for local officials was used as a quasi-experiment. The results indicated that the green response level of the treatment (audit pilot) group was significantly higher than that of the control group. This indicated that the system for auditing the natural-resource assets for local officials had environmental governance effects. According to a mediation analysis, both governmental subsidies and bank credit mediated the effect of auditing on green response of enterprises. This indicates that during the pilot audits of natural-resource assets, high-polluting enterprises mainly met the requirements of the government and banks for a green response to obtain economic support. This study provides empirical evidence for evaluating policy effects and strengthening the audits of local officials’ environmental accountability.
Journal: Applied Economics
Pages: 3950-3970
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120958
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120958
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:34:p:3950-3970



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2120180_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ekta Sikarwar
Author-X-Name-First: Ekta
Author-X-Name-Last: Sikarwar
Title: Determinants of Foreign exchange exposure during the COVID-19 crisis: A Multi-country evidence
Abstract: 
 The research question of which firm-level factors make firms more vulnerable to exchange rate fluctuations during periods of crisis has rarely been explored by prior literature. Using a large sample of 1577 firms from 9 developed and 11 emerging countries, this study presents a comprehensive analysis of how firm-level factors affect firms’ foreign exchange exposure before and during the COVID-19 crisis. The results provide evidence of a substantial increase in firms’ linear exposure during the COVID-19 period. The cross-sectional analysis reveals that the effects of firm-level variables on exposure are more pronounced during crisis periods and are different from non-crisis periods. Firms that have effective asset utilization or large operating profit margins remain less exposed during times of stress. Contrary to hedging theory, firms that have high incentives to hedge such as firms with high financial leverage become highly exposed to currency fluctuations during crisis periods. The interaction analysis provides further evidence that firms with high leverage can limit their foreign exchange exposure during periods of crisis if they have high asset turnover or high operating profits. The results offer important practical implications to firms for risk management during periods of crisis.
Journal: Applied Economics
Pages: 3931-3949
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120180
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120180
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:34:p:3931-3949



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2121378_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Christopher M. Duquette
Author-X-Name-First: Christopher M.
Author-X-Name-Last: Duquette
Title: An exploratory study on the migration-pattern impact of coal dust in the US
Abstract: 
 In this exploratory study, it is observed that there is a potentially important dimension of the quality of life that has been effectively ignored in prior migration studies in the U.S.: air quality as reflected by the presence of coal dust per se. Accordingly, it is hypothesized in this study that an elevated presence of coal dust in close proximity to a prospective residence will act to discourage in-migration (both net in-migration and gross in-migration) because of the greater threat of adverse health impacts and because of elevated expected and/or actual pure economic costs per se, for example, deterioration of one’s physical assets, including automobile(s) and housing, that accompany close proximity to elevated airborne coal dust. There is strong empirical support for this ‘coal dust/in-migration hypothesis’.
Journal: Applied Economics
Pages: 3996-4002
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2121378
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2121378
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:34:p:3996-4002

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2123105_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mengfan Zhang
Author-X-Name-First: Mengfan
Author-X-Name-Last: Zhang
Author-Name: Yuxiang Hong
Author-X-Name-First: Yuxiang
Author-X-Name-Last: Hong
Title: Effects of civilized cities commendation on urban green innovation: evidence from a quasi-natural experiment in China
Abstract: 
 Based on non-economic field promotion tournament theory, this study examines the linkage between civilized cities commendation policy (CCCP) and urban green innovation (UGI). Using the panel data of 279 cities in China from 2003 to 2018, the difference-in-differences, propensity score matching difference-in-differences, and difference-in-differences spatial dobbin models are established to verify the hypotheses. The empirical results show that CCCP has a positive effect on UGI; innovation investments and innovation talents significantly mediate the relationship between CCCP and UGI; environmental governance intensity positively moderates the relationships between CCCP and UGI, innovation investments and UGI, as well as innovation talent agglomeration and UGI; and the influence of CCCP on UGI has a spatial spillover effect and a spatial attenuation boundary. These findings provide practical insights towards the improvement of urban evaluation and commendation systems, as well as green innovation.
Journal: Applied Economics
Pages: 4060-4077
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123105
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123105
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:35:p:4060-4077



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2123107_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Miao Yu
Author-X-Name-First: Miao
Author-X-Name-Last: Yu
Author-Name: Xiaolu Hu
Author-X-Name-First: Xiaolu
Author-X-Name-Last: Hu
Author-Name: Angel Zhong
Author-X-Name-First: Angel
Author-X-Name-Last: Zhong
Title: The spread of COVID-19 in stock returns along global value chains
Abstract: 
 This paper examines the performance of industries in the trade network in international stock markets during the onset of COVID-19. In general, the value of all industries in G20 countries declines significantly in the pandemic. Stock returns of industries in the central positions of global value chains exhibit remarkable resilience despite the economic hardship caused by COVID-19. This pattern is more pronounced when the disruptions caused by social distancing requirements are considered. We postulate that this is related to the essential services provided by the central industries.
Journal: Applied Economics
Pages: 4091-4107
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123107
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123107
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:35:p:4091-4107



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2125494_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhen Li
Author-X-Name-First: Zhen
Author-X-Name-Last: Li
Author-Name: Yanyan Shen
Author-X-Name-First: Yanyan
Author-X-Name-Last: Shen
Author-Name: Maogang Tang
Author-X-Name-First: Maogang
Author-X-Name-Last: Tang
Title: Government subsidies and the development of PPP projects: evidence from China
Abstract: 
 Based on micro data on public-private partnership (PPP) projects in China, this study adopts the survival analysis model and the difference-in-difference-in-differences (DDD) method to explore the effects of government subsidies on PPP project development. We investigate PPP project development from the perspective of contract signing and construction commencement, making an original contribution to the existing literature. We find that government subsidies can promote the faster signing of PPP contracts but cannot promote on-time construction commencement of PPP projects. This is because government subsidies do not solve the financing constraints that restrict the commencement of PPP project construction. Additionally, government subsidies can promote the faster signing of PPP contracts and on-time construction commencement of PPP projects in areas with high PPP market transparency.
Journal: Applied Economics
Pages: 4130-4145
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2125494
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2125494
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:35:p:4130-4145



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2123104_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Vivek Bhargava
Author-X-Name-First: Vivek
Author-X-Name-Last: Bhargava
Author-Name: Mukesh K. Chaudhry
Author-X-Name-First: Mukesh K.
Author-X-Name-Last: Chaudhry
Title: Trend reversal and alpha generation by hedge funds
Abstract: 
 Hedge funds use different strategies to outperform benchmark indices by undertaking complex, versatile and dynamic techniques. These strategies may however create alpha generating opportunities in the time series that may be contrary to the existence of random walk behaviour. Tests using unit-root structural break analysis led to rejection of random walk hypothesis favouring trend stationarity or mean reversion. Additional tests including structural breaks are conducted to establish persistence of alpha generating opportunities for twelve different hedge fund indices. For some strategies, profitable prospects occur only before the break date, as evidence suggests a paradigm shift between the two periods.
Journal: Applied Economics
Pages: 4037-4059
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123104
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123104
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:35:p:4037-4059



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2123106_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maria Alessandra Antonelli
Author-X-Name-First: Maria Alessandra
Author-X-Name-Last: Antonelli
Author-Name: Angelo Castaldo
Author-X-Name-First: Angelo
Author-X-Name-Last: Castaldo
Author-Name: Valeria De Bonis
Author-X-Name-First: Valeria
Author-X-Name-Last: De Bonis
Title: Assessing the interdependence of social policy outcomes: evidence from European countries
Abstract: 
 This paper investigates the existence of social policy interdependence in 22 European countries. We find that the outcomes of social policies achieved in a country are influenced by the social outcomes obtained in other countries; more precisely, there is a positive correlation between the level of welfare services in a country and a weighted average of the welfare services level in other countries, with the weights capturing the different degrees of proximity between them. The other determinants of social outcomes include the efficiency of the expenditure process, the GDP level, and the redistributive preferences of the median voter.
Journal: Applied Economics
Pages: 4078-4090
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123106
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123106
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:35:p:4078-4090



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2125495_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohammad Bitar
Author-X-Name-First: Mohammad
Author-X-Name-Last: Bitar
Author-Name: Imane El Ouadghiri
Author-X-Name-First: Imane
Author-X-Name-Last: El Ouadghiri
Author-Name: Jonathan Peillex
Author-X-Name-First: Jonathan
Author-X-Name-Last: Peillex
Title: A cross-institutional exploratory investigation of COVID-19 spread: formal vs. informal institutions
Abstract: 
 We investigate the effect of culture on COVID-19 spread using a sample of 67 countries over the first 10 months of the pandemic. We find that individualistic countries have higher number of COVID-19 cases, an effect that is independent from formal institutions. A two-ways interaction effects, however, between formal institutions and individualism, shows that effective political institutions, sound governance, and better economic conditions reduce the effect on individualism on CVODI-19 spread. Our findings provide evidence that are useful not only for explaining differences in COVID-19 spread between countries but can also enable policymakers and organizations to understand what generally determines individuals’ compliance with formal rules and regulations.
Journal: Applied Economics
Pages: 4146-4163
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2125495
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2125495
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:35:p:4146-4163



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2125493_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hai Hong Trinh
Author-X-Name-First: Hai Hong
Author-X-Name-Last: Trinh
Author-Name: Michael McCord
Author-X-Name-First: Michael
Author-X-Name-Last: McCord
Author-Name: Daniel Lo
Author-X-Name-First: Daniel
Author-X-Name-Last: Lo
Author-Name: Graham Squires
Author-X-Name-First: Graham
Author-X-Name-Last: Squires
Title: Do green growth and technological innovation matter to infrastructure investments in the era of climate change? Global evidence
Abstract: 
 This study investigates the nexus between green growth, technological innovations, and infrastructure investment trends, through an international investigation of 56 countries for the period of 2000–2020. Based on the Environmental Impact by Population, Affluence and Technology (IPAT) and Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) frameworks, the study looks at the nexus between infrastructure investments, green growth, and technological innovations in the era of climate change. We find that increases in global carbon emissions are associated with higher infrastructure investment needs for the sustainable development of the world’s economy. Besides global infrastructure investments for sustainable development goals (SDGs), the economic costs of climate change are also reflected in technological innovations across countries and sectors. With higher investments in technological innovations such as low-carbon infrastructure and energy technologies, we highlight the roles of environment-oriented R&D and taxes in our global sample. The findings are validated through utilising a set of econometric techniques and are particularly crucial to emerging economies, and pollutingeconomies with high climate risk exposure. SDGs. Our study provides a formal empirical investigation of climate change, investments in infrastructure, and green growth. We also provide critical policy implications, future directions, and agendas in sustainable green finance and climate economics.
Journal: Applied Economics
Pages: 4108-4129
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2125493
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2125493
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:35:p:4108-4129

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2126817_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yi Zhang
Author-X-Name-First: Yi
Author-X-Name-Last: Zhang
Author-Name: Ying Wu
Author-X-Name-First: Ying
Author-X-Name-Last: Wu
Author-Name: Wei Zhou
Author-X-Name-First: Wei
Author-X-Name-Last: Zhou
Title: High-speed railway and rural poverty alleviation
Abstract: 
 This paper investigates the impact of high-speed railway (HSR) on rural poverty alleviation in China. Using a large sample of Chinese prefecture-level cities for the 2003–2013 period, we provide evidence that HSR has a positive effect on rural poverty alleviation. This finding is robust to a battery of robustness tests. In addition, we find that HSR can reduce rural poverty by improving employment rates in the manufacturing and construction industries. Our study suggests that HSR can play an important role in rural poverty alleviation.
Journal: Applied Economics
Pages: 4165-4176
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2126817
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2126817
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:36:p:4165-4176



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128175_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Giulio Fusco
Author-X-Name-First: Giulio
Author-X-Name-Last: Fusco
Author-Name: Pierluigi Toma
Author-X-Name-First: Pierluigi
Author-X-Name-Last: Toma
Author-Name: Yari Vecchio
Author-X-Name-First: Yari
Author-X-Name-Last: Vecchio
Title: Efficiency, gender diversity and public aid: evidence from Italian agrifood sector
Abstract: 
 The aim of this empirical analysis is to assess the economic efficiency of Italian farms across provinces, to determine whether production efficiency is correlated with gender differences in farm ownership and the level of European agricultural subsidies received. This study uses a bootstrap-Data Envelopment Analysis (DEA) approach to analyse data collected from the Farm Accountancy Data Network. The data show that male-led farms are dominant throughout Italy and are generally more efficient than female-led farms. However, northern region farms are relatively more productive than southern region farms, despite male-led farms being less dominant in the north than in the south. Further, while male-led farms were more predominant in the south, and receive the greatest share of European agricultural assistance per province, they are relatively less efficient. These results imply that refocusing entrepreneurial and financial assistance to northern region farms, with a relatively higher ratio of female-led farming operations, can promote overall Italian agricultural efficiency while also decreasing the gender gap in agricultural efficiency that exists between male-led and female-led Italian farms.
Journal: Applied Economics
Pages: 4177-4193
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128175
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128175
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:36:p:4177-4193



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Woo Jae Lee
Author-X-Name-First: Woo Jae
Author-X-Name-Last: Lee
Author-Name: Seung Uk Choi
Author-X-Name-First: Seung Uk
Author-X-Name-Last: Choi
Title: Abnormal audit fees and accounting quality: further evidence from audit hours
Abstract: 
 This study examines whether auditors compromise accounting quality by charging abnormally high audit fees. In particular, by drawing on the audit pricing theory, we investigate the relationship between abnormal audit fees and accounting quality, using fee residuals derived from an audit fee model that includes audit hours and hourly fees. Using listed firms in the Korean stock market, we find that the negative relationship between abnormal audit fees and accounting quality does not hold when we use abnormal audit fees estimated after controlling for audit hours. In contrast, we find a negative association between abnormally high audit fees, estimated after controlling for hourly fees, and accounting quality. Collectively, these findings support the interpretation that the negative relationship between abnormal audit fees and accounting quality, identified in previous studies, is driven by increased audit hours owing to lower accounting quality. Furthermore, we find that these results are driven by audit partner hours and senior auditor hours rather than junior auditor hours. This suggests that audit firms impose higher-level audit hours in the presence of low accounting quality, which results in higher audit fees.
Journal: Applied Economics
Pages: 4239-4257
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128179
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128179
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:36:p:4239-4257



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenjing Geng
Author-X-Name-First: Wenjing
Author-X-Name-Last: Geng
Author-Name: Xin Zhao
Author-X-Name-First: Xin
Author-X-Name-Last: Zhao
Author-Name: Xiaoxiao Zhou
Author-X-Name-First: Xiaoxiao
Author-X-Name-Last: Zhou
Title: Research on extreme risk measurement in the international carbon emission futures market, based on a two-component Beta-Skew-t-EGARCH-POT model
Abstract: 
 The European Union Allowance (EUA)-driven carbon emissions trading market is selected as a research object. First, the one-component and two-component Beta-Skew-t-EGARCH models are used to depict the characteristics of the return series, considering return series features such as volatility clustering and asymmetry. Moreover, the extreme VaR risk value is directly estimated. Then, the POT method of extreme value theory is applied to describe the extreme tail characteristics of the return series, and the one-component and two-component Beta-Skew-t-EGARCH-POT models constructed, to estimate the extreme VaR risk value, once again. Finally, the performance of each model in extreme VaR risk measurement is tested using six indicators that include the relative error rate, independence test, and dynamic quantile test. The empirical results show that the two-component Beta-Skew-t-EGARCH-POT model performs better in extreme risk measurement, inferring that this model is better suited to describing risk in the carbon market.
Journal: Applied Economics
Pages: 4194-4203
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128176
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128176
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:36:p:4194-4203



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenjing Ouyang
Author-X-Name-First: Wenjing
Author-X-Name-Last: Ouyang
Author-Name: Samuel Szewczyk
Author-X-Name-First: Samuel
Author-X-Name-Last: Szewczyk
Author-Name: Thanh Ngo
Author-X-Name-First: Thanh
Author-X-Name-Last: Ngo
Title: Assortative matching in merging firms’ stock price informativeness
Abstract: 
 Developed upon the assortative matching theory and recent studies that merging firms are matched on diverse firm characteristics and policies, this paper examines whether they also match in stock price informativeness. Our study shows that assortative matching between the acquirer and target firms’ stock price informativeness increases the probability of deal initiation. It also increases the likelihood that an M&A transaction is paid with stock and constructed as a negotiated merger. Finally, matched stock price informativeness increases merger wealth effect. This paper expands the application of the assortative matching theory in M&A literature from the perspective that stock price firm-specific information reflects firm fundamentals and policies.
Journal: Applied Economics
Pages: 4204-4227
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128177
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128177
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:36:p:4204-4227



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bana Abuzayed
Author-X-Name-First: Bana
Author-X-Name-Last: Abuzayed
Author-Name: Nedal Al-Fayoumi
Author-X-Name-First: Nedal
Author-X-Name-Last: Al-Fayoumi
Title: Diversification and hedging strategies of green bonds in financial asset portfolios during the COVID-19 pandemic
Abstract: 
 In this paper, we investigate whether investors can reap potential diversification or hedging benefits from holding green bonds in a portfolio containing a conventional financial asset during the COVID-19 pandemic. Using data from 6 November 2014 to 5 November 2020, we estimate corrected dynamic conditional correlation between between green bonds and four major asset classes: stocks, corporate bonds, commodities, and clean energy. We extend our analysis by using these correlations to examine hedging, optimal portfolio weights, and naïve strategies and evaluate their implications for investors by calculating hedging effectiveness and utility gain improvement. Results reveal that across the full sample, pre-COVID-19, and during-COVID-19 periods, optimal portfolio weights represent an ideal strategy to realize the greatest risk reduction and risk-adjusted return. Further, green bonds could add substantial diversification benefits for investors holding assets in clean energy, global stocks, and commodities.
Journal: Applied Economics
Pages: 4228-4238
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128178
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128178
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:36:p:4228-4238



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128180_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Antonella Biscione
Author-X-Name-First: Antonella
Author-X-Name-Last: Biscione
Author-Name: Dorothée Boccanfuso
Author-X-Name-First: Dorothée
Author-X-Name-Last: Boccanfuso
Author-Name: Annunziata de Felice
Author-X-Name-First: Annunziata
Author-X-Name-Last: de Felice
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Title: Barriers to firms’ energy efficiency in transition countries
Abstract: 
 This study seeks to explore the firm’ barriers of energy efficiency in a set of 28 Transition economies exploiting the enterprise survey data collected by the European Bank for Reconstruction and Development (EBRD) jointly with the European Investment Bank (EIB) and the World Bank Group (WBG). Based on the Ordinary Least Squares (OLS) regression model and on the construction of three different indicators to evaluate the energy efficiency, we find that the barriers to the adoption of energy efficiency measures mainly lack financial resources and profitability. Findings obtained from the interactions are also worthy of note. In particular, we find that the absence of profitability starts being stronger for non-EU countries. Instead, there is no evidence of heterogenous effects for industry sectors.
Journal: Applied Economics
Pages: 4258-4272
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128180
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128180
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:36:p:4258-4272

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128181_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abdoulganiour Almame Tinta
Author-X-Name-First: Abdoulganiour Almame
Author-X-Name-Last: Tinta
Title: Are more educated people more likely to engage in terrorism
Abstract: 
 This study examines the connection between education and terrorism. By using information provided by the police and the army during the various terrorist assaults in the Sahel region and the filtering method, we build a micro data set from 2019 to 2021 from interventions in Burkina Faso, Niger, and Mali. Implementing several models, we find a positive association between education and terrorism which suggests that more educated people are more likely to engage in terrorism. We also find that terrorists are generally active in the labour market. These results are associated with socio-economic and demographic characteristics of the individual and institutional framework, especially attendance to religious school, gender, age, and the presence of law enforcement in the attack place. Furthermore, we provide evidence that unlike ”the old paradigm”, terrorists come more from urban than rural areas and are sensitive to spatial heterogeneity which contributes to reduce their motivation. The negative binomial results confirm that the higher the level of education of the terrorist, the greater the number of victims. Educated terrorists cause the most damage and are the most dangerous. In view of the results, policies are suggested.
Journal: Applied Economics
Pages: 4273-4288
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128181
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128181
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:37:p:4273-4288



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128293_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Edmond Berisha
Author-X-Name-First: Edmond
Author-X-Name-Last: Berisha
Author-Name: Ram Sewak Dubey
Author-X-Name-First: Ram
Author-X-Name-Last: Sewak Dubey
Author-Name: Orkideh Gharehgozli
Author-X-Name-First: Orkideh
Author-X-Name-Last: Gharehgozli
Title: Inflation and income inequality: does the level of income inequality matter?
Abstract: 
 Given the complexity of interaction between inflation and inequality, we examine whether the impact of inflation on inequality differs among distinct levels of income inequality across the US states. Results reveal that there is a negative contemporaneous effect of inflation on the inequality which becomes stronger with higher levels of income inequality. However, over a one year period, we find higher inflation rate to further increase income inequality only when income inequality is initially relatively low.
Journal: Applied Economics
Pages: 4319-4330
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128293
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128293
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:37:p:4319-4330



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128184_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ramy El-Dardiry
Author-X-Name-First: Ramy
Author-X-Name-Last: El-Dardiry
Author-Name: Benedikt Vogt
Author-X-Name-First: Benedikt
Author-X-Name-Last: Vogt
Title: How far do Gazelles run? - growth patterns of regular firms, high growth firms and startups
Abstract: 
 High growth firms receive a lot attention from policy and academia. In this paper we investigate the general validity of an investor startup database in studying high growth firms and growth persistence. To do so, we match Dutch administrative firm level panel data with this startup database. We establish two main facts. First, although the vast majority of high growth firms in the Dutch economy does not appear in the database, included firms do have a higher probability of being a high growth firm. Second, in contrast to regular Dutch firms and previous findings in the literature, startups show a strikingly persistent growth pattern: their growth phases are prolonged. We conclude that commercial startup databases can complement more traditional data sources, but interpretation requires care due to unclear selection in the database.
Journal: Applied Economics
Pages: 4304-4318
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128184
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128184
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:37:p:4304-4318



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128296_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: Maneka Savithri Jayasinghe
Author-X-Name-First: Maneka Savithri
Author-X-Name-Last: Jayasinghe
Author-Name: Eliyathamby A Selvanathan
Author-X-Name-First: Eliyathamby A
Author-X-Name-Last: Selvanathan
Author-Name: Syed Ali Abbas
Author-X-Name-First: Syed Ali
Author-X-Name-Last: Abbas
Author-Name: Md Sayed Iftekhar
Author-X-Name-First: Md Sayed
Author-X-Name-Last: Iftekhar
Title: Energy consumption, agriculture, forestation and CO2 emission nexus: an application to OECD countries
Abstract: 
 The Environmental Kuznets Curve (EKC) hypothesis has been used to explain the relationship between environmental degradation and economic condition. This study formulates an augmented EKC framework to incorporate the effect of agriculture, forestation and energy consumption on CO2 emission and estimates the model using the data from 24 OECD countries between 1990 and 2018. The study utilizes individual-country analysis and panel dynamic analysis for the empirical investigation. The results show a positive relationship between CO2 emission and fossil fuel use – a 1% increase in fossil fuel consumption will increase CO2 emission by 0.76%, and a negative relationship with renewable energy – a 1% increase in renewable energy consumption will reduce CO2 emission by 0.14%. The impact of forest cover and agricultural production on CO2 emission is mixed at the single-country level. The panel fixed-effect results reveal that a 1% increase in agricultural production and forest cover leads to a 0.04% and 0.63% increase in CO2 emission, respectively. There is also strong evidence supporting the presence of the EKC hypothesis. The global CO2 emission reduction strategies, such as carbon taxes and emission trading schemes, must acknowledge and incorporate the interplay among -key macro-level variables revealed in this study to enhance their effectiveness.
Journal: Applied Economics
Pages: 4359-4376
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128296
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128296
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:37:p:4359-4376



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128295_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: David Meenagh
Author-X-Name-First: David
Author-X-Name-Last: Meenagh
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Title: A structural model of coronavirus behaviour: what do four waves of Covid tell us?
Abstract: 
 This paper extends Meenagh and Minford (2021) to the four waves of infection in the UK by end-2021, using the unique newly available sample-based estimates of infections created by the ONS. These allow us to estimate the effects on the Covid hospitalization and fatality rates of vaccination and population immunity due to past infection: the latter was the most significant factor driving both trends, while the vaccination rate also had a significant short-run effect on the fatality rate. We also updated our policy comparison with Sweden for the most recent data, with similar conclusions: lower Swedish lockdown intensity relative to personal response in waves 1 and 2 caused much lower economic costs with no discernible effect on infections.
Journal: Applied Economics
Pages: 4348-4358
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128295
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128295
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:37:p:4348-4358



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128294_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ali Zeytoon-Nejad
Author-X-Name-First: Ali
Author-X-Name-Last: Zeytoon-Nejad
Author-Name: Barry K. Goodwin
Author-X-Name-First: Barry K.
Author-X-Name-Last: Goodwin
Author-Name: Sujit Ghosh
Author-X-Name-First: Sujit
Author-X-Name-Last: Ghosh
Title: Generalizing the General: generalizing the CES production function to allow for the viability of input thresholds
Abstract: 
 The original specification of the Constant-Elasticity-of-Substitution (CES) production function introduced by Arrow, Chenery, Minhas, and Solow is considered to be a general production specification that nests multiple types of production functions, i.e. Leontief, Cobb-Douglas, and linear. However, even this general specification of production functions is restrictive in several ways. This paper proposes a generalized variant of the CES production function that allows for the inclusion of the minimum required levels of inputs. Not allowing for this potential attribute is, in fact, one shortcoming of the original CES production-function specification, which in turn could result in misleading conclusions about essential levels of inputs. Accordingly, a solution is proposed to overcome the mentioned shortcoming. Input thresholds are incorporated in the CES production specification, and empirical applications are provided for irrigation and nitrogen. To illustrate the proposed approach in this paper, two empirical applications in irrigation and fertilizer response using the famous Hexem-Heady experimental dataset as well as several datasets produced using Monte-Carlo experiments with different data-generating processes are provided. Finally, implications for modelling input thresholds are considered and discussed.
Journal: Applied Economics
Pages: 4331-4347
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128294
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128294
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:37:p:4331-4347



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128183_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuri Salazar Flores
Author-X-Name-First: Yuri
Author-X-Name-Last: Salazar Flores
Author-Name: Adán Díaz Hernández
Author-X-Name-First: Adán
Author-X-Name-Last: Díaz Hernández
Author-Name: Luis Alberto Quezada-Téllez
Author-X-Name-First: Luis Alberto
Author-X-Name-Last: Quezada-Téllez
Author-Name: Oralia Nolasco Jáuregui
Author-X-Name-First: Oralia
Author-X-Name-Last: Nolasco Jáuregui
Title: The use of the tail dependence function for high quantile risk measure analysis: an application to portfolio optimization
Abstract: 
 Adequate risk modelling in a financial portfolio has become the central part of its analysis. To this end, risk measures have proven to be very effective. However, the efficiency of these measures lies in the accurate modelling of both the individual behaviour as well as the dependence between the assets. In particular, tail dependence has become crucial in analysing Value at Risk (VaR) and the Expected Shortfall (ES) in high quantiles. This study introduces a new methodology to estimate high quantile risk measures based on the Tail Dependence Function. With this function, we can estimate asset dependence by focusing on replicating the extreme behaviour. In an empirical study, we estimate the VaR and ES of a portfolio of stock indices during the current pandemic considering our approach along with the most traditional GARCH-Copula and historical approaches as benchmark estimators. Our approach yields superior estimators with respect to the benchmark estimators in high quantiles.
Journal: Applied Economics
Pages: 4289-4303
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128183
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128183
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:37:p:4289-4303

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129568_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Taniya Ghosh
Author-X-Name-First: Taniya
Author-X-Name-Last: Ghosh
Author-Name: Masudul Hasan Adil
Author-X-Name-First: Masudul Hasan
Author-X-Name-Last: Adil
Title: Money’s predictive role in output: evidence from recent data
Abstract: 
 We measure and assess the predictive performance of money in explaining output for the US, the UK, the Euro Area and Poland. Our approach, which uses more recent data and a larger set of areas, focuses on whether money ‘Granger causes’ output while taking into account the statistical properties of the data, which has implications for Granger causality tests. In addition to simple sum monetary aggregates, we use Divisia monetary aggregates, which are theoretically shown to be the actual measure of monetary services. Our results confirm that movements in money are still relevant in explaining movements in output, particularly when Divisia monetary aggregate is used. While the models using ‘narrow’ money, both simple sum and Divisia, provide mixed evidence of support, what appears to be robust across countries, is the predictive power of ‘broad Divisia’ in explaining output. Furthermore, our research finds no evidence that the statistical significance of money decreases as more variables are added to the model, or models with level variables produce more significant results than models with growth variables. In fact, rather than the level of money, it is the growth rate of money and the deviation of the growth rate of money from its time trend, which ‘Granger causes’ output.
Journal: Applied Economics
Pages: 4415-4440
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129568
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129568
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:38:p:4415-4440



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129041_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Isabelle Cadoret
Author-X-Name-First: Isabelle
Author-X-Name-Last: Cadoret
Author-Name: Jacques Minlend
Author-X-Name-First: Jacques
Author-X-Name-Last: Minlend
Author-Name: Tovonony Razafindrabe
Author-X-Name-First: Tovonony
Author-X-Name-Last: Razafindrabe
Title: Uncertainty diffusion across commodity markets
Abstract: 
 While numerous studies investigate volatility transmission across commodity markets, particularly oil and agricultural markets, uncertainty diffusion across commodity markets remains absent from the literature. This circumstance is primarily related to the lack of appropriate measures of commodity price uncertainty, which differs from volatility. This study focuses on measuring commodity price uncertainty and how it is transferred from one commodity market to another. Our contributions are twofold. (i) We construct an aggregate predictability-based measure of uncertainty for each group of commodity markets and different maturities, and (ii) we analyse uncertainty diffusion across different commodity markets using a vector autoregressive model. Our findings clearly demonstrate a bi-causal uncertainty transfer between agriculture, energy, and industrial markets, excluding precious metals markets. Additionally, the industrial commodity market is assumed to be the transmission channel of commodity uncertainty spread, given its close link with global economic activity. Notably, we validate the efficacy of using industrial uncertainty as a proxy for macroeconomic uncertainty. Finally, our confirmation of precious metals’ insensitivity to other markets’ shocks reinforces its nature as a safe haven.
Journal: Applied Economics
Pages: 4377-4401
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129041
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129041
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:38:p:4377-4401



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129569_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Martina Celidoni
Author-X-Name-First: Martina
Author-X-Name-Last: Celidoni
Author-Name: Angelica Guzzon
Author-X-Name-First: Angelica
Author-X-Name-Last: Guzzon
Author-Name: Vincenzo Rebba
Author-X-Name-First: Vincenzo
Author-X-Name-Last: Rebba
Title: Health literacy and education: evidence from the English Longitudinal Study of Ageing
Abstract: 
 We estimate the causal effect of compulsory schooling on health literacy using data from the English Longitudinal Study of Ageing. We exploit the quasi-experimental setting produced by the UK’s 1944 Education Act. We estimate a positive effect of one additional year of schooling on health literacy among women, no significant effects among men. This result is in line with previous findings about the positive effects of compulsory schooling on own health among women and supports the idea that more schooling might have generated efficiency gains in the health production due to improved health literacy.
Journal: Applied Economics
Pages: 4441-4454
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129569
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129569
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:38:p:4441-4454



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129572_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Feng Jin
Author-X-Name-First: Feng
Author-X-Name-Last: Jin
Author-Name: Jingwei Li
Author-X-Name-First: Jingwei
Author-X-Name-Last: Li
Author-Name: Guangchen Li
Author-X-Name-First: Guangchen
Author-X-Name-Last: Li
Title: Connectedness between crude oil, coal, rare earth, new energy and technology markets: a GARCH-vine-copula-EVT analysis
Abstract: 
 In recent years, climate change has attracted great attention from governments and promoted the booming of the new energy market indirectly. However, this market will be influenced by traditional energy, rare earth and technology markets. Hence, it is necessary to incorporate these markets into an analytical framework simultaneously and analyse their relationships. Based on the GARCH-vine-copula-EVT model considering extreme risks, we investigate the connectedness between crude oil, coal, rare earth, new energy, and technology markets. The results show that the technology market is most closely associated with the new energy market; the rare earth market reacts as an intermediary market between the new energy market and fossil fuel markets. When taking the rare earth market as the conditional market, the connectedness between the new energy and the other four markets weakens and even becomes negative. Besides, we find that the COVID-19 epidemic has increased the connectedness between these target markets. Finally, the backtesting results of value at risk and expected shortfall show that the GARCH-vine-copula-EVT model considering extreme risks can depict the risk dependence structure between these target markets well. Our study has important reference significance for market participants, risk managers and investors.
Journal: Applied Economics
Pages: 4469-4485
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129572
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129572
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:38:p:4469-4485



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129570_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Tor Eriksson
Author-X-Name-First: Tor
Author-X-Name-Last: Eriksson
Title: Maternal education, child health and nutrition — evidence from China’s compulsory education law
Abstract: 
 The effect of maternal education on child health in China is studied by exploiting a change in the Compulsory Education Law from 1986. Data from four waves (2004–2011) of the China Health and Nutrition Survey are used. Variations across cohorts and provinces induced by the timing of the reform are used as instrumental variables to account for the endogeneity of education. Results show that mothers’ educational attainment has significant and sizable positive effects on their children’s health, as measured by height, weight and BMI Z-scores. Maternal education is associated with improved food structure (increased consumption of meat, egg, and dairy products) and healthier nutrient intake (increased share of calorie obtained from fat and proteins) of their offspring. Mothers who were exposed to the education reform are more knowledgeable about healthy diets and healthy behaviours than those not exposed and hence had fewer years of schooling.
Journal: Applied Economics
Pages: 4455-4468
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129570
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129570
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:38:p:4455-4468



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129042_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hokuto Ishii
Author-X-Name-First: Hokuto
Author-X-Name-Last: Ishii
Title: Yield curve shapes and foreign exchange rates: the term structure of interest rates model approach
Abstract: 
 Exchange rates play a crucial role in the international economy. This study investigates the explanatory power of yield curve factors in exchange rate predictions for countries in three currency pairs: Japanese yen (JPY)–US dollar (USD), British pound (GBP)–USD, and Canadian dollar (CAD)–USD. The results empirically establish that each country’s yield curve factors, extracted from the term structure of interest rates model, play a key role in determining future exchange rates. Specifically, an increase in the US level factor causes depreciation in the USD relative to the JPY for the full sample period (June 1994–October 2020) and in the GBP and CAD for the post-global financial crisis period. The study’s model provides more useful information than the baseline uncovered interest rate parity model for explaining the variations in the three currency pairs. Additionally, the yield curve factors also explain the variation in countries’ excess currency returns. This study has important theoretical implications for identifying which of the two countries’ yield curve factors predominantly explain the exchange rate changes and the related policy implications. It also provides key policy insights by substantiating the association between macroeconomic variables and exchange rate changes.
Journal: Applied Economics
Pages: 4402-4414
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129042
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129042
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:38:p:4402-4414



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2128297_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaohang Ren
Author-X-Name-First: Xiaohang
Author-X-Name-Last: Ren
Author-Name: Yue Dou
Author-X-Name-First: Yue
Author-X-Name-Last: Dou
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Cheng Yan
Author-X-Name-First: Cheng
Author-X-Name-Last: Yan
Title: Spillover effects among crude oil, carbon, and stock markets: evidence from nonparametric causality-in-quantiles tests
Abstract: 
 This study investigates the spillovers and information transmission between carbon, crude oil, and stock markets under various market conditions in Phase III of the EU ETS. For this purpose, we use a novel causality-in-quantiles test method and quantile impulse response functions based on daily data of carbon futures, Brent spot, and three representative equity indices in the Europe over the period from 27 January 2014 to 18 September 2020. We find that crude oil market has a unidirectional spillover effect on carbon market, and this causality is significant under normal to bullish market conditions. Furthermore, the causality-in-quantiles between crude oil and stock markets varies with specific equality index, and the information transmission from crude oil to stock market is strong in the normal stock market but invalid when stock markets become extremely bearish or bullish. The COVID-19 epidemic may cause structural changes in the oil-carbon and oil-stock nexus.
Journal: Applied Economics
Pages: 4486-4509
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128297
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128297
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:38:p:4486-4509

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130145_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shaoyan Sun
Author-X-Name-First: Shaoyan
Author-X-Name-Last: Sun
Author-Name: Xinjian Zhang
Author-X-Name-First: Xinjian
Author-X-Name-Last: Zhang
Author-Name: Hung-Chun Liu
Author-X-Name-First: Hung-Chun
Author-X-Name-Last: Liu
Author-Name: Min Hua
Author-X-Name-First: Min
Author-X-Name-Last: Hua
Title: News sentiment and crash risk
Abstract: 
 This paper uses firm-specific released news data in the Chinese market to examine the relationship between news sentiment and stock price crash risk between 2007 and 2017. To do so, we develop a firm-specific news sentiment index by quantifying the textual contents in the news. Our results show that firms with better news sentiment are less likely to be involved in future stock crash risk. Also, we find that CEOs approaching retirement are an important mechanism for explaining the relationship between news sentiment and firm crash risk. Our main findings still hold after conducting several robustness tests.
Journal: Applied Economics
Pages: 4586-4594
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130145
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130145
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:39:p:4586-4594



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129575_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Markus Brueckner
Author-X-Name-First: Markus
Author-X-Name-Last: Brueckner
Author-Name: Wensheng Kang
Author-X-Name-First: Wensheng
Author-X-Name-Last: Kang
Author-Name: Joaquin Vespignani
Author-X-Name-First: Joaquin
Author-X-Name-Last: Vespignani
Title: Covid-19 and Firms’ Stock Price Growth: The Role of Market Capitalization
Abstract: 
 This paper studies the role of capitalization on firms’ stock price growth in response to new cases of Covid-19 infections in the United States. Controlling for firm and time fixed effects, our panel model estimates show that the effect of new cases of Covid-19 infections on firms’ stock price growth is significantly increasing in capitalization: For each one standard deviation increase in capitalization, a one standard deviation increase in new cases of Covid-19 infections increases the weekly growth rate of firms’ stock prices by about 0.7% points. Effects of capitalization on the impact that Covid-19 infections have on firms’ stock price growth are largest in the travel, tourism, and hospitality sector. Smaller but still positive effects of capitalization are present in the pharmaceutical products, high-tech, and banking and finance sectors. The results are robust to controlling firms’ elasticity of demand, productivity, financial constraints, managerial compensations, and aggregate money growth and economic activity.
Journal: Applied Economics
Pages: 4522-4538
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129575
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129575
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:39:p:4522-4538



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130144_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhefan Piao
Author-X-Name-First: Zhefan
Author-X-Name-Last: Piao
Author-Name: Cecheng Wu
Author-X-Name-First: Cecheng
Author-X-Name-Last: Wu
Author-Name: Ning Su
Author-X-Name-First: Ning
Author-X-Name-Last: Su
Author-Name: Yueqin Lin
Author-X-Name-First: Yueqin
Author-X-Name-Last: Lin
Author-Name: Zihan Zheng
Author-X-Name-First: Zihan
Author-X-Name-Last: Zheng
Title: Financial constraints, capital misallocation and firm’s total factor productivity (TFP) loss – empirical evidence from listed manufacturing companies in China
Abstract: 
 Based on the theoretical mechanism that ‘financing constraints (investment-cash flow sensitivity) → capital misallocation → firm’s total factor productivity’ and ADL(2,2) model, implied cost model, total factor productivity model, panel regression model and mediation effect model, we empirically investigate the impact of financing constraints on TFP loss and the mediating effect of capital misallocation. Finance and market transaction data for manufacturing companies listed on Shanghai and Shenzhen stock exchanges during 2009–2019 are used in the empirical study. Chinese manufacturing companies were shown to have investment-cash flow sensitivity. The empirical analysis proved that financing constraints not only have direct negative impact on the firm’s TFP directly but also negatively affect the TFP by the mediating effect of capital misallocation. Moreover, firm heterogeneity analysis showed that the above two impacts were greater for non-stated owned firms, small and medium-sized firms, and young firms than stated-owned firms, big firms and mature firms.
Journal: Applied Economics
Pages: 4572-4585
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130144
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130144
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:39:p:4572-4585



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129577_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Risto Herrala
Author-X-Name-First: Risto
Author-X-Name-Last: Herrala
Author-Name: Rima Turk Ariss
Author-X-Name-First: Rima
Author-X-Name-Last: Turk Ariss
Title: Debt limits and monetary policy during the euro area crisis
Abstract: 
 We study the debt limits of non-financial firms, and the influence of monetary policy via this channel during the global financial crisis in the euro area. The estimations indicate that monetary policy was initially effective in fending of a fall in the debt limits. After the monetary policy channel peaked in the vicinity of the zero-lower bound, however, the debt limits of non-financial firms contracted by almost a fifth. The tightening of the debt limits directly influenced firms that hold almost a tenth of corporate assets. The estimations furthermore provide evidence of structural shifts in credit use that contributed to the sluggish economic dynamism during the crisis period.
Journal: Applied Economics
Pages: 4563-4571
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129577
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129577
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:39:p:4563-4571



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130146_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shiwei Yu
Author-X-Name-First: Shiwei
Author-X-Name-Last: Yu
Author-Name: Xing Hu
Author-X-Name-First: Xing
Author-X-Name-Last: Hu
Author-Name: Jie Liu
Author-X-Name-First: Jie
Author-X-Name-Last: Liu
Title: Determinants of wind power curtailment in China: evidence from provincial panel data
Abstract: 
 Identifying the determinants of wind curtailment is crucial to mitigating the overcapacity of wind power and achieving a low-carbon transition in China’s economy. Existing literature sorted out various factual causes of wind curtailment, but recognizing key factors and revealing their economic mechanisms are missing. Based on power market equilibrium theory, we address the issue by comparing the marginal effects of factors in a ‘supply-transmission-demand’ framework. Using the panel Tobit model with bootstrap standard errors, we find that variable wind resources and wind power supply capacity are the main determinants of curtailment. The wind power equipment utilization is significantly and negatively related to wind curtailment rate, suggesting that the variable wind resources inhibit wind power consumption from electricity security concerns and increasing costs of grid companies. The wind power supply capacity positively affects wind curtailment by directly spurring market structural disequilibrium and resource waste. We also find that policy intensity has a negative but relatively slight role, whereas wind power price does not affect curtailment due to government pricing.
Journal: Applied Economics
Pages: 4595-4608
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130146
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130146
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:39:p:4595-4608



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129574_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lorenzo Bermejo
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Bermejo
Author-Name: Maria Malmierca-Ordoqui
Author-X-Name-First: Maria
Author-X-Name-Last: Malmierca-Ordoqui
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: Unemployment and COVID-19: an analysis of change in persistence
Abstract: 
 This paper examines the degree of persistence in monthly unemployment rates for a group of 24 European countries along with the global rate for the Euro area, the European Union, the G7 and the OECD countries. For this purpose, fractionally integrated methods are employed. Using data from January 2010 to November 2020, our results indicate that fractional integration is present in all countries examined, with the orders of integration of the series ranging in the (0, 1) interval. Comparing the data before COVID-19 with those including it, the significant time trend coefficient and the mean reverting property disappear in most cases when COVID-19 data are considered. This implies that governments should consider that, after the pandemic, shocks on the labour market will have permanent effects. Thus, policies should address unemployment accordingly. Our work, however, does not focus on the analysis of nonlinearities, what could provide a more complete understanding of the series behaviour.
Journal: Applied Economics
Pages: 4511-4521
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129574
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129574
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:39:p:4511-4521



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2129576_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: M. Djiguemde
Author-X-Name-First: M.
Author-X-Name-Last: Djiguemde
Author-Name: D. Dubois
Author-X-Name-First: D.
Author-X-Name-Last: Dubois
Author-Name: A. Sauquet
Author-X-Name-First: A.
Author-X-Name-Last: Sauquet
Author-Name: M. Tidball
Author-X-Name-First: M.
Author-X-Name-Last: Tidball
Title: Individual and strategic behaviors in a dynamic extraction problem: results from a within-subject experiment in continuous time
Abstract: 
 We conduct a laboratory experiment to test a continuous-time model that represents a dynamic groundwater extraction problem in an infinite horizon. We compare the observations to the equilibrium path of the usual behaviours, for the case where the player is alone in extracting the resource (optimal control) and when two players extract the same resource simultaneously (differential game). We use a within-subjects design. This allows us to identify individual profiles of players playing alone and then characterize groups based on their composition with respect to these individual behaviours. We find that approximately a quarter of the players and groups succeed in playing (significantly) optimally, and none behave myopically. Moreover having an agent that behaved optimally in the control in the pair increases the likelihood that the group cooperates. We also identify other categories of players and groups that allows us to classify an additional 50% of the observations.
Journal: Applied Economics
Pages: 4539-4562
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129576
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129576
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:39:p:4539-4562

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xing Chen
Author-X-Name-First: Xing
Author-X-Name-Last: Chen
Author-Name: Chenchen Li
Author-X-Name-First: Chenchen
Author-X-Name-Last: Li
Author-Name: Chongfeng Wu
Author-X-Name-First: Chongfeng
Author-X-Name-Last: Wu
Title: Worldwide earnings news and equity price movement: a supply-chain perspective
Abstract: 
 This paper shows that worldwide earnings news can significantly influence the asset pricing in China, indicating the information transmission along the global supply chain. We investigate how stock prices of Chinese-listed firms react to the earnings announcements of their worldwide supply-chain partners and find that stock returns will exhibit a significant drift upwards (downwards) after the good (bad) news of their customers and suppliers. Moreover, we provide evidence that the equity price movement may be driven by the earnings information transmission between supply-chain partners and this effect is strengthened for the firms with higher information asymmetry or investor attention. Third, our primary results hold with a battery of robustness checks, including multiple controls consideration, proxy usage of earnings news, division of the sample, and length of market responses.
Journal: Applied Economics
Pages: 4695-4711
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130871
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130871
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:40:p:4695-4711



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130147_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Evangelos M. Falaris
Author-X-Name-First: Evangelos M.
Author-X-Name-Last: Falaris
Title: Children’s school attendance, work, health and rainfall shocks in Ethiopia
Abstract: 
 The relationship between rainfall and primary-school-age children’s school attendance, school absence, work and health in rural Ethiopia is investigated. The focus is on how these relationships may differ by children’s gender. An increase in rainfall relative to longer-term average rainfall is associated with increased school attendance by girls and decreased school attendance by boys. An increase in rainfall is associated with increased probability of working by boys and decreased probability of working by girls; no significant change in weekly hours worked by boys and decreased work hours by girls. The implication for boys is that more of them work when there is more rainfall, but those already working work fewer hours. An increase in rainfall frees girls’ time, so they can potentially devote more attention to their schooling. An increase in rainfall is associated with lower school enrolment by boys but fewer hours of work for those already working. In terms of human capital acquisition, these two forces work in opposite ways for boys. An implication of these findings is that policies that offset income shocks arising from reduced rainfall are expected to result in increase in girls’ human capital and potentially reduce future gender economic disparities.
Journal: Applied Economics
Pages: 4609-4624
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130147
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130147
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:40:p:4609-4624



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130152_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bruce T. Lamont
Author-X-Name-First: Bruce T.
Author-X-Name-Last: Lamont
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Jack I. Richter
Author-X-Name-First: Jack I.
Author-X-Name-Last: Richter
Title: Self-employment, income, and poor with disabilities: the 2016 inclusion of people with disabilities act in Brazil
Abstract: 
 We exploit the implementation of the Inclusion of People with Disabilities Act in Brazil in early 2016 and use stigma theory to focus on the poor with disabilities, a double-stigmatized group, in a developing country setting. We hypothesize after the passage of the law, the poor with disabilities will pursue more self-employment than employment, but their income will remain low, with only the income of the employed improving. Contrary to expectations, the results show that the odds of self-employment were not higher than employment after the law. But as predicted, only the income of the employed improved, with the income gap between the employed and self-employed with disabilities growing wider after the passage of the law. The findings demonstrate that the law mainly benefitted the poor with disabilities who were able to gain employment but not the self-employed.
Journal: Applied Economics
Pages: 4664-4677
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130152
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130152
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:40:p:4664-4677



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174942_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bingyan Zan
Author-X-Name-First: Bingyan
Author-X-Name-Last: Zan
Author-Name: Camilla Baasch Andersen
Author-X-Name-First: Camilla Baasch
Author-X-Name-Last: Andersen
Author-Name: Lisa Toohey
Author-X-Name-First: Lisa
Author-X-Name-Last: Toohey
Title: Assessing the efficacy of visual contracts: an empirical study of transaction costs
Abstract: 
 Visual contracts have attracted increasing attention as a human-focused approach to contract law, with proponents arguing they are a better way to effectively communicate complex terms and conditions. However, there have been only limited empirical studies of the efficacy of these contracts. This paper compares and evaluates data of responses to text and visual contracts from two large Australian companies. Drawing on theories of transaction cost economics, we undertook an empirical study of ordinary least square (OLS) regressions to examine the effectiveness of visual contracts in comparison with traditional text-based contracts. Analysis of the results demonstrates that the visual format plays a significant role in reducing the transaction costs of contracting, providing empirical confirmation of the value of contract redesign and the visual format.
Journal: Applied Economics
Pages: 4712-4726
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2023.2174942
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174942
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:40:p:4712-4726



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chenggang Wang
Author-X-Name-First: Chenggang
Author-X-Name-Last: Wang
Author-Name: Keqiao Liu
Author-X-Name-First: Keqiao
Author-X-Name-Last: Liu
Author-Name: Huixia Wang
Author-X-Name-First: Huixia
Author-X-Name-Last: Wang
Title: The effects of temperature on sleep experience: evidence from China
Abstract: 
 A large body of literature estimates the high-temperature effects on a variety of economic and health outcomes. This paper provides convergent evidence of a possible working mechanism behind those effects. That is, upon examining nationally representative self-report measures in China, we studied the relationship between temperature and people’s sleep experience, an essential input for productivity and health outcomes. By analysing county-level daily temperature data and the CFPS self-reported sleep experience data, our findings indicate that high temperature can increase the probability of reporting poor sleep experiences in China. Additionally, elderly, lower educated, and rural residents may be more vulnerable to the damage of heatwaves. Our results imply that high temperature can adversely and significantly impact people’s sleep experience, though its effect can be partially offset by installing air conditioners.
Journal: Applied Economics
Pages: 4678-4694
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130870
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130870
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:40:p:4678-4694



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130151_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Piero Esposito
Author-X-Name-First: Piero
Author-X-Name-Last: Esposito
Author-Name: Sergio Scicchitano
Author-X-Name-First: Sergio
Author-X-Name-Last: Scicchitano
Title: Drivers of skill mismatch among Italian graduates: the role of personality traits
Abstract: 
 It is now well accepted that human capital is a heterogeneous aggregate and that noncognitive skills are at least as relevant as cognitive abilities. In spite of this growing interest in the labour market consequences of personality traits, the relationship between these and educational and skill mismatch is scant. In this paper, we investigate the impact of the five main personality traits (Big 5) on educational and skill mismatch in Italian graduates. To this aim, we use the 2018 wave of the INAPP-PLUS survey, which contains information on skill mismatch, on the Big 5 personality traits, and on a large number of other individual and job-specific characteristics. The empirical analysis takes into account both demand and supply variables mediating the effect of personality on skill mismatch and controls for non-random selection into employment and tertiary education. We find that some personality traits reduce the probability of overeducation, suggesting complementarity between cognitive and noncognitive skills. In addition, we find a positive effect of conscientiousness on both overeducation and overqualification. The evidence regarding job satisfaction suggests that individuals with high scores for conscientiousness voluntarily decide to be mismatched when this entails higher satisfaction in other dimensions of the job.
Journal: Applied Economics
Pages: 4642-4663
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130151
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130151
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:40:p:4642-4663



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130148_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhuo Cheng
Author-X-Name-First: Zhuo
Author-X-Name-Last: Cheng
Author-Name: Tajul Ariffin Masron
Author-X-Name-First: Tajul Ariffin
Author-X-Name-Last: Masron
Title: Economic policy uncertainty and corporate digital transformation: evidence from China
Abstract: 
 Digital transformation refers to the process of utilizing digital technology to develop new or enhance current business processes, organizational culture, and customer experiences to satisfy changing business and market requirements. Taking all non-financial Chinese A-share firms from 2010 to 2018 as the research sample, we investigate the impact of Economic Policy Uncertainty (EPU) on corporate digital transformation. Evidence shows that EPU has a significantly positive impact on corporate digital transformation. This result still holds after a series of robustness tests, such as employing alternative measures of key variables, controlling for various fixed effects, including possibly omitted variables and adopting estimation of instrumental variables in the 2SLS approach. In addition, market competition provides the primary channel through which EPU influences corporate digital transformation. Finally, the above EPU effect is more pronounced in firms with small size, non-SOEs, and firms with weak corporate governance. Overall, our results provide a novel explanation for the behaviour of corporate digital transformation in the emerging capital markets.
Journal: Applied Economics
Pages: 4625-4641
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130148
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130148
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:40:p:4625-4641

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2131720_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Weiguo Xiao
Author-X-Name-First: Weiguo
Author-X-Name-Last: Xiao
Author-Name: Qi Deng
Author-X-Name-First: Qi
Author-X-Name-Last: Deng
Author-Name: Wei Yuan
Author-X-Name-First: Wei
Author-X-Name-Last: Yuan
Author-Name: Naiqian Wu
Author-X-Name-First: Naiqian
Author-X-Name-Last: Wu
Title: Financial frictions, capital misallocation, and total factor productivity: evidence from China
Abstract: 
 From the perspective of credit constraints and heterogeneous financing costs, this paper aims to enrich our understanding on how financial frictions affect capital misallocation and total factor productivity (TFP). Our model predicts that financial frictions could lead to greater capital misallocation and TFP losses. Moreover, credit constraints exacerbate capital misallocation and amplify TFP losses caused by heterogeneous financing costs. On this basis, we use micro-level data of the Chinese industrial firms to quantify the TFP losses caused by financial frictions. The results show that: (1) financial frictions have caused huge TFP losses in China’s manufacturing industry, and credit constraints have contributed to 120.7% of annual manufacturing TFP losses on average. (2) The manufacturing TFP losses are significantly higher in the post-crisis period than in the pre-crisis period because of the more prevalent and tighter credit constraints. (3) The increase in the post-crisis TFP losses is largely accounted for by the tightening credit constraints faced by firms in central China and non-state-owned enterprises. Our findings highlight the importance of alleviating financial frictions to improve capital allocation efficiency and promote economic growth.
Journal: Applied Economics
Pages: 4853-4870
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131720
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131720
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:41:p:4853-4870



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2131715_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Do Yeong Lee
Author-X-Name-First: Do Yeong
Author-X-Name-Last: Lee
Author-Name: Sung Y. Park
Author-X-Name-First: Sung Y.
Author-X-Name-Last: Park
Title: Global energy intensity convergence using a spatial panel growth model
Abstract: 
 In this paper, we empirically test the convergence of income and energy intensity for 61 countries using an augmented spatial growth model that includes energy and urbanization variables. We test an income convergence model to understand how energy use affects economic growth, and reveal that developing countries have energy constraints on their economic development. We show that energy is an essential component of economic growth in the early stages of development and that energy intensity converges between countries. It is consistent with the OLS estimation results that the convergence rate of energy intensity in developing countries of the spatial panel data model is still higher than in developed countries. However, the spatial panel data model shows that the gap between the two convergence rates is narrowed when spatial dependence is included. This implies that a country’s steady state is influenced by the neighbouring countries and emphasizes the importance of international cooperation policies for reducing energy intensity. Since the effects of economic variables on the reduction of energy intensity are different in developed and developing countries, a country-specific energy policy rather than an internationally uniform policy is required.
Journal: Applied Economics
Pages: 4745-4764
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131715
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131715
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:41:p:4745-4764



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2131716_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xinyue Liu
Author-X-Name-First: Xinyue
Author-X-Name-Last: Liu
Author-Name: Li Zhou
Author-X-Name-First: Li
Author-X-Name-Last: Zhou
Author-Name: Lei Lei
Author-X-Name-First: Lei
Author-X-Name-Last: Lei
Title: Contract farming, animal epidemic disease outbreaks, and inclusive growth in rural China
Abstract: 
 Contract farming (CF) is promoted as part of agricultural development policies in many countries. Few literature on CF has considered the animal epidemic risk, which significantly affects the total revenue and the re-distribution between the contract farmers and the enterprise. Using the ten-year nationwide household-level panel data, we investigate the Chinese poultry sector to analyse the inclusiveness of CF. We evaluate the impact of participating in CF on farmers’ income and asset endowments when animal epidemic diseases occur. The results confirm the insurance and discover the special re-distribution function of CF through adjusting product price. CF negatively affects large farmers’ poultry farming income while it could be mitigated during the animal epidemic disease outbreak. Meanwhile, participating in CF has a significant positive effect on small farmers’ assets when diseases occur. However, CF fails to be ‘inclusive’ in the presence of risks. The above positive effect is limited due to overall fewer participation opportunities available to small farmers. Policy implications and suggestions are derived to improve the inclusiveness of CF to small household farmers.
Journal: Applied Economics
Pages: 4765-4780
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131716
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131716
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:41:p:4765-4780



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2131718_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wei Xie
Author-X-Name-First: Wei
Author-X-Name-Last: Xie
Author-Name: Yi An
Author-X-Name-First: Yi
Author-X-Name-Last: An
Title: Should dominant contracts move to nearby months?--Evidence from Chinese agricultural futures markets
Abstract: 
 China’s agricultural futures market has long exhibited a unique phenomenon: the distribution of dominant contracts has always followed the ‘January-May-September’ pattern. Behind this phenomenon is the prominent problem of the deferred and discontinuous distribution of dominant contracts, which regulators hope to solve. Based on Chinese corn and cotton futures, this study uses the method of information leadership shares to investigate the price discovery ability of dominant and nearby contracts. The empirical results show that the deferred and discontinuous distribution of dominant contracts does not hinder the price discovery function. When dominant contracts are rolled over, this does not mean that the price discovery function simultaneously converts. Measures to accelerate the transfer of dominant contracts from deferred to nearby months could not fundamentally eliminate this phenomenon. A reasonable adjustment for liquidity distribution shall be considered the market’s self-regulation.
Journal: Applied Economics
Pages: 4817-4840
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131718
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131718
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:41:p:4817-4840



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2131719_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Congping Yang
Author-X-Name-First: Congping
Author-X-Name-Last: Yang
Author-Name: Tong Shu
Author-X-Name-First: Tong
Author-X-Name-Last: Shu
Author-Name: Sheng Liang
Author-X-Name-First: Sheng
Author-X-Name-Last: Liang
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Title: Vehicle routing optimization for rural package collection and delivery integrated with regard to the customer self-pickup radius
Abstract: 
 This paper explores the optimization for the integrated vehicle routing of package collection and delivery in rural areas, based on the coverage idea and customer self-pickup strategy. The purpose is to optimize package collection and delivery in rural areas with the scattered and small-scale demand for the express service. An integrated vehicle routing model for rural package collection and delivery is established with regard to the radius of customer self-pickup, via taking the sum of operation cost, transportation cost, time penalty cost and carbon emission cost as the optimization goal. A two-stage algorithm based on the improved k-means clustering algorithm and genetic algorithm is designed to solve the model. Ziyuan county of Guangxi province is taken for typical example. The simulation results show that the optimization model can raise vehicle loading rate and service coverage rate, while reducing cost. A rise in the customer’s self-pickup radius and the number of packages collected and delivered can decrease the unit collection and delivery cost, and it is found that carbon emissions have little effects on the optimization of vehicle routing from the perspective of cost.
Journal: Applied Economics
Pages: 4841-4852
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131719
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131719
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:41:p:4841-4852



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2131717_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shampa Bhattacharjee
Author-X-Name-First: Shampa
Author-X-Name-Last: Bhattacharjee
Author-Name: Arka Roy Chaudhuri
Author-X-Name-First: Arka
Author-X-Name-Last: Roy Chaudhuri
Title: Religion in the labor market: evidence from India
Abstract: 
 In this paper, we analyse the education and wage gaps between Hindus and Muslims over the period 1983 to 2011–2012 in India. We find that Muslims are worse off than Hindus in terms of education and this disadvantage has increased over time. Our analysis shows that the wage gap is more pronounced at the higher end of the wage distribution which we interpret as a glass ceiling effect. We find that the wage gap has increased over time and the increase is more pronounced at the upper quantiles. Our decomposition analysis shows that difference in education has a significant contribution to the Hindu-Muslim wage gap. We find that the Hindu-Muslim gaps are more pronounced in urban areas relative to rural areas. Comparing Muslims with different Hindu castes, we find that while the disadvantaged castes have improved their condition relative to Muslims over time, the condition of Muslims relative to the advantaged castes has worsened. Dividing the sample into younger (aged 16–35) and older (36–65) cohorts, we find that the Hindu-Muslim gap in education is more acute in the younger cohort while the Hindu-Muslim wage gap is more pronounced for the older cohort.
Journal: Applied Economics
Pages: 4781-4816
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131717
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131717
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:41:p:4781-4816



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2130872_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shaikh M.S.U. Eskander
Author-X-Name-First: Shaikh M.S.U.
Author-X-Name-Last: Eskander
Author-Name: Khandokar Istiak
Author-X-Name-First: Khandokar
Author-X-Name-Last: Istiak
Title: Energy efficiency and CO2 emissions: evidence from the UK universities
Abstract: 
 Understanding how energy efficiency improvement can mitigate CO2 emissions is critical for global climate change policies to ensure environmental sustainability and a low carbon future. Being the catalyst for training future generations, universities can play a leading role in this vision by adopting energy-saving and emissions reduction strategies. Using HESA data, a centralized system of reporting energy use and corresponding emissions, we adopt a two-step system GMM estimation procedure to estimate the effect of energy efficiency on CO2 emissions for 119 UK universities over the period between 2008–2009 and 2018–2019. Results confirm that higher energy efficiency is conducive to lower emissions. However, the less-than-elastic relationship between energy efficiency and emissions implies that energy efficiency improvement alone cannot enable the UK universities to comply with their net-zero objectives unless they increasingly adopt renewable energy sources. Despite this, universities were able to avoid 2.21 gtCO2e emissions over the sample period due to energy efficiency improvements. Our results are robust to alternative specifications.
Journal: Applied Economics
Pages: 4727-4744
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2130872
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130872
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:41:p:4727-4744

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2133896_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Diandian Ren
Author-X-Name-First: Diandian
Author-X-Name-Last: Ren
Author-Name: Hongyu Guo
Author-X-Name-First: Hongyu
Author-X-Name-Last: Guo
Author-Name: Tingfeng Jiang
Author-X-Name-First: Tingfeng
Author-X-Name-Last: Jiang
Title: Managed anonymity of CBDC, social welfare and taxation: A new monetarist perspective
Abstract: 
 China’s central bank digital currency (CBDC), e-CNY, is currently in a large-scale pilot stage. In this study, a new monetarist model, both theoretically and quantitively, is developed to assess the relationship between the managed anonymity feature of e-CNY, social welfare, and taxation. The findings are as follows. First, the introduction of managed anonymous CBDC affects the official and shadow economy by increasing the diversity of payment instruments and suppressing tax evasion, thereby improving social welfare and government tax revenue. Second, if CBDC is ‘cash-like’ in the sense that it offers relatively high anonymity, then issuing CBDC meets the public demand for anonymous small value payment services and enhances the individual welfare of most households. Third, if CBDC is ‘deposit-like’ in the sense that it offers relatively low anonymity, then issuing CBDC combats illegal transactions in the shadow economy, and increases the total amount of social welfare and government tax revenue. The model, calibrated to the Chinese economy, suggests that aggregate welfare and government tax revenue can be increased by up to 3.2% and 10%, respectively. These findings suggest that policy-makers can dynamically adjust the anonymity design of CBDC to better align it with changing policy objectives and economic conditions.
Journal: Applied Economics
Pages: 4990-5011
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133896
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133896
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:42:p:4990-5011



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2131722_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tao Li
Author-X-Name-First: Tao
Author-X-Name-Last: Li
Author-Name: Wenxiu (Vince) Nan
Author-X-Name-First: Wenxiu (Vince)
Author-X-Name-Last: Nan
Author-Name: Jahangir Sultan
Author-X-Name-First: Jahangir
Author-X-Name-Last: Sultan
Title: Internal Relevance between Analysts’ Forecasts and Target Prices - Informativeness and Investment Value
Abstract: 
 Analysts’ decision-making process, through which they use earnings and non-earnings forecasts to provide their target price revisions, remains opaque. Based on the decision tree analysis, we develop a new multivariate information metric, Internal Relevance (IR), to measure the extent to which the revisions of analysts’ consensus earnings and sales forecasts are incorporated into the revisions of consensus target prices. We show that stocks with higher IR have stronger market reactions to target price revisions in terms of abnormal return, abnormal trading volume, and abnormal return volatility. These results remain consistent across a series of robustness checks. Finally, we perform portfolio analysis to show that IR can be used to screen stocks to improve trading profitability.
Journal: Applied Economics
Pages: 4890-4910
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131722
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131722
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:42:p:4890-4910



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2133895_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuanyuan Zhang
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Zhang
Author-Name: Stephen Chan
Author-X-Name-First: Stephen
Author-X-Name-Last: Chan
Author-Name: Jeffrey Chu
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Chu
Author-Name: Shou–hsing Shih
Author-X-Name-First: Shou–hsing
Author-X-Name-Last: Shih
Title: The adaptive market hypothesis of Decentralized finance (DeFi)
Abstract: 
 Decentralized finance, or ‘De-Fi’, is an emerging sector and movement in finance and the cryptocurrency space that aims to extend the idea of digital currencies to a global decentralized financial system. In many cases, customized ‘coins’ or ‘tokens’ are used for applications such as borrowing or lending, providing liquidity, and even voting. Built on the same foundations of traditional cryptocurrencies (e.g. Bitcoin), these tokens possess monetary value and can be traded using fiat currencies on specialized decentralized exchanges. We provide the first analysis investigating the market efficiency of the decentralized finance market through DeFi tokens. Our findings from applying the adaptive market hypothesis (AMH) revealed that the efficiency of the markets varies over time, with the majority of the DeFi token returns exhibit very short days of inefficiency and predictability in their price every year. This is consistent with the AMH, but perhaps unexpected when considering the link between emerging financial markets and market efficiency. We conclude that the majority of investors and practitioners purchase these DeFi tokens for their utility value rather than for investment purposes, hence making the DeFi market more efficient. Further robustness checks on other comparable products in the blockchain ecosystem such as NFTs also reveal similar results.
Journal: Applied Economics
Pages: 4975-4989
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133895
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133895
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:42:p:4975-4989



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2131721_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiong Wang
Author-X-Name-First: Xiong
Author-X-Name-Last: Wang
Author-Name: Yazhi Zhu
Author-X-Name-First: Yazhi
Author-X-Name-Last: Zhu
Author-Name: Xiaohang Ren
Author-X-Name-First: Xiaohang
Author-X-Name-Last: Ren
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Title: The impact of digital inclusive finance on the spatial convergence of the green total factor productivity in the Chinese cities
Abstract: 
 This paper measures the Green Total Factor Productivity (GTFP) of 279 cities in China from 2011 to 2018 based on the Global Malmquist-Luenberger (GML) index and Slacks-based Measure Directional Distance Function (SBM-DDF) method. Through different spatial econometric models, we empirically analyse the spatial convergence of the GTFP and the spatial effect of Digital Inclusive Finance (DIF) on the GTFP convergence. The results show no spatial σ convergence in the GTFP in the Total, Central, Eastern, and Western regions of China, while the gap in green development is the largest in western cities and most balanced among central cities. In China’s three regions, absolute spatial β convergence, conditional spatial β convergence, and spatial club convergence exist. The DIF can promote the spatial convergence of the GTFP, and the promotion effect is more significant in the Western than in the Eastern and Central regions. The findings are important for narrowing the regional GTFP gap and promoting regional economic synergistic development.
Journal: Applied Economics
Pages: 4871-4889
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131721
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131721
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:42:p:4871-4889



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2133894_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alejandro Fernández-Cerezo
Author-X-Name-First: Alejandro
Author-X-Name-Last: Fernández-Cerezo
Author-Name: Beatriz Gonzalez
Author-X-Name-First: Beatriz
Author-X-Name-Last: Gonzalez
Author-Name: Mario Izquierdo Peinado
Author-X-Name-First: Mario
Author-X-Name-Last: Izquierdo Peinado
Author-Name: Enrique Moral-Benito
Author-X-Name-First: Enrique
Author-X-Name-Last: Moral-Benito
Title: Firm-level heterogeneity in the impact of the COVID-19 pandemic
Abstract: 
 This paper explores the heterogeneity across firms in the impact of and response to the COVID-19 shock. It relies on a survey conducted by Banco de España to 4,004 companies in November 2020 matched to very rich balance-sheet information on firm characteristics. According to our results, COVID-19 had a higher impact on the most vulnerable firms (small, young and less productive), and they also found more useful government policy support. Nonetheless, there were some exceptions: public loan guarantees had more difficulties reaching firms with less pre-existing debt; and furlough schemes were not able to fully protect jobs in firms with a higher share of temporary workers, which find firing more useful. While uncertainty is the key factor hindering firms’ activity, we use the announcement of the Pfizer vaccine on November 9th 2020 as a natural experiment to provide evidence that the vaccine announcement improved significantly firms’ subjective recovery expectations. This points at the importance of the communication of medical advances to guide firms’ expectations in pandemic episodes.
Journal: Applied Economics
Pages: 4946-4974
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133894
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133894
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:42:p:4946-4974



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2133893_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peter Lindner
Author-X-Name-First: Peter
Author-X-Name-Last: Lindner
Author-Name: Thomas Y. Mathä
Author-X-Name-First: Thomas Y.
Author-X-Name-Last: Mathä
Author-Name: Giuseppe Pulina
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Pulina
Author-Name: Michael Ziegelmeyer
Author-X-Name-First: Michael
Author-X-Name-Last: Ziegelmeyer
Title: Borrowing constraints, own labour and homeownership
Abstract: 
 We show that a substantial share of households contributes their own labour to the acquisition of their main residence. These contributions help households faced with credit constraints, since they reduce the need for external financing. We develop a simple theoretical model and show that own labour contributions decrease with the level of financial resources available, while they increase with the mortgage interest rate. These theoretical results are supported by empirical analysis, which also shows that own labour contributions vary by household characteristics (age, gender, profession) and by type of dwelling (house, apartment).
Journal: Applied Economics
Pages: 4931-4945
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133893
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133893
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:42:p:4931-4945



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2131723_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chao Yan
Author-X-Name-First: Chao
Author-X-Name-Last: Yan
Author-Name: Jiaxin Wang
Author-X-Name-First: Jiaxin
Author-X-Name-Last: Wang
Author-Name: Yi Feng
Author-X-Name-First: Yi
Author-X-Name-Last: Feng
Title: Can innovation help existing firms resist shock from new stock issuance? Evidence from the launch of China’s STAR market
Abstract: 
 The launch of China’s STAR market (officially known as the Science and Technology Innovation Board of Shanghai Stock Exchange) caused a significant drop in stock prices in existing stock markets in the Shanghai and Shenzhen stock exchanges. This study examines whether innovative firms showed more resilience to the shock caused by the launch of the STAR market. Using a sample of Chinese A-share listed firms, we find that firms with higher innovation had significantly higher stock returns during the shock period. This suggests that the STAR market launch induced investors to pay more attention to firm innovation and prompted them to reward innovations to a greater extent. This finding remains intact after an array of robustness tests. Moreover, this effect was more pronounced in non-state-owned enterprises and firms with higher product market competition. Additional analyses suggest that investors prefer firms with higher quality of innovation. Overall, this study finds that innovation plays an important role in capital markets; that is, innovation helps firms resist shock from the issuance of new shares.
Journal: Applied Economics
Pages: 4911-4930
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131723
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131723
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:42:p:4911-4930

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2136616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhuo Huang
Author-X-Name-First: Zhuo
Author-X-Name-Last: Huang
Author-Name: Yunqing Tao
Author-X-Name-First: Yunqing
Author-X-Name-Last: Tao
Author-Name: Xin Luo
Author-X-Name-First: Xin
Author-X-Name-Last: Luo
Author-Name: Yongwei Ye
Author-X-Name-First: Yongwei
Author-X-Name-Last: Ye
Author-Name: Tianyi Lei
Author-X-Name-First: Tianyi
Author-X-Name-Last: Lei
Title: Regional digital finance and corporate investment efficiency in China
Abstract: 
 Digital finance has a substantial effect on macroeconomics and plays an important role in corporate investment behaviour. However, few studies examine how digital finance affects corporate investment efficiency. We use the data of Chinese A-share listed companies for 2011–2017 and the provincial digital finance index developed by Peking University to document that digital finance significantly improves corporate investment efficiency. Our findings are supported by extensive robustness tests. In addition, we identify two mechanisms by which digital finance may affect corporate investment efficiency: by reducing financing constraints and stimulating corporate innovation. We find that digital finance has a more pronounced effect on non-state-owned enterprises, small firms, firms in the central and western regions of China, firms with fewer loans, and firms with a higher dependence on external financing, indicating that digital finance increases the inclusiveness of financial markets. Finally, our economic consequences test shows that digital finance increases the total factor productivity of firms. Overall, this study provides insights for developing countries. In particular, it suggests that digital finance can increase firms’ resource allocation efficiency.
Journal: Applied Economics
Pages: 5115-5134
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136616
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2136616
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:43:p:5115-5134



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2135679_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: P. Wesley Routon
Author-X-Name-First: P. Wesley
Author-X-Name-Last: Routon
Author-Name: Jay K. Walker
Author-X-Name-First: Jay K.
Author-X-Name-Last: Walker
Title: (More) Party time in school? Relative age and alcohol consumption
Abstract: 
 School starting age policies result in academic cohorts where the oldest students are approximately a full year older than their youngest peers. A student’s relative age in their cohort has been shown related to many important outcomes. As examples, relatively older students have been found to be more focused and successful academically, more consistent in their related goals, have more friends, and are less likely to commit crime. Here, we examine the relationships between relative age and alcohol consumption (and partying behaviours) during high school and college. The sample used consists of more than 87,000 U.S. students who attended over 600 different colleges and universities, and even more high schools. These outcomes are found to be only mildly related to relative age, with evidence pointing towards older students drinking and partying slightly less during both high school and college. Though they had upwards of an extra year of being older than the legal drinking age during college, relatively older students drank slightly less, on average. Thus, among college students, the maturity effect of relative age appears stronger than the legal deterrence effect of minimum legal drinking age laws. (I23, I29, I12)
Journal: Applied Economics
Pages: 5048-5064
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2135679
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2135679
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:43:p:5048-5064



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2136359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jia Wang
Author-X-Name-First: Jia
Author-X-Name-Last: Wang
Author-Name: Weici Yuan
Author-X-Name-First: Weici
Author-X-Name-Last: Yuan
Author-Name: Cynthia L. Rogers
Author-X-Name-First: Cynthia L.
Author-X-Name-Last: Rogers
Title: Economic development program spending in the US: is there club convergence?
Abstract: 
 This paper provides a novel investigation of whether budgetary spending on economic development programs converges across US states. States use a wide array of tax and subsidy programs to try to attract firms in a highly competitive environment. If states engage in strategic tax and incentive competition as previous literature suggests, we should expect economic development spending to converge over time. Using a national database of state ‘out of pocket’ economic development expenditures, we apply the panel convergence method developed by Phillips and Sul (2007, 2009) which endogenously identifies the number and members of convergence clubs. We find that states flock together in three spending clubs which reflect socioeconomic characteristics. The existence of multiple clubs with heterogeneous spending patterns reveals the complexity of state-level budgetary efforts put towards economic development programs.
Journal: Applied Economics
Pages: 5097-5114
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136359
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2136359
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:43:p:5097-5114



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2133897_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuanyuan Ma
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Ma
Author-Name: Chenglong Liu
Author-X-Name-First: Chenglong
Author-X-Name-Last: Liu
Author-Name: Jie Tian Zhang
Author-X-Name-First: Jie Tian
Author-X-Name-Last: Zhang
Author-Name: Yanze Liu
Author-X-Name-First: Yanze
Author-X-Name-Last: Liu
Title: Reliability study of stock index forecasting in volatile and trending cities using public sentiment ——based on word2Vec and LSTM models
Abstract: 
 Accurate forecasting of the stock market has always been a key concern of academics and investors, and few researchers have discussed the reliability of stock index forecasting in volatile and trending markets based on public sentiment. This article will first use Word2Vec and CNN to classify the sentiment of 754,000 text data excavated from the Oriental Fortune Stock Forum and construct public sentiment indicators; then, select characteristic parameters such as the closing value of the Shanghai Composite Index, the inflow of northbound funds, and the exchange rate of RMB against the US dollar. Introducing sentiment indicators and building an LSTM model to explore the effect of public sentiment factors on the prediction of the Shanghai Composite Index in the unilateral rise, unilateral fall, and volatile markets. The research shows that the reliability of using public sentiment to predict unilateral falling and volatile markets is high, especially the prediction error of predicting volatile markets is the smallest. In addition, it is also found that due to the existence of the ‘disposition effect’, the error is significantly larger when using public sentiment factors to predict the unilateral rising market.
Journal: Applied Economics
Pages: 5013-5032
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133897
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133897
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:43:p:5013-5032



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2136357_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Melvin Jameson
Author-X-Name-First: Melvin
Author-X-Name-Last: Jameson
Author-Name: Constant I. Tra
Author-X-Name-First: Constant I.
Author-X-Name-Last: Tra
Author-Name: Jeffrey R. Wheble
Author-X-Name-First: Jeffrey R.
Author-X-Name-Last: Wheble
Title: Out of the shadows: the behaviour of the market for cannabis during its transition to legal status
Abstract: 
 This study considers the functioning of the market for recreational marijuana during its transition to legal status in Colorado and Washington State. Contrary to the expectation that moving from covert to legal status generates a freer flow of information that improves market functioning, we find that the measures we consider, price dispersion and the incidence of low-quality deliveries (‘rip-offs’), both show statistically and economically significant increases, reflecting worsening market functioning. We attribute this adverse outcome to the partial nature of the initial decriminalization, which maintained sanctions against selling, even while legalizing purchase and possession of small quantities. Our results also confirm that purchases increased with decriminalization. An influx of unsophisticated new buyers would create a less-informed average customer; a less-informed customer pool is consistent with poorer market outcomes, especially when dealers must continue to keep transactions secret. This work contributes to the empirical price dispersion literature, providing results consistent with the hypothesis that price dispersion increases when participants are less informed, but inconsistent with the prediction that price dispersion decreases with lower cost of price information. It also provides further evidence consistent with the importance of ‘rip-off’ transactions that has been highlighted in the literature on covert markets.
Journal: Applied Economics
Pages: 5065-5080
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136357
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2136357
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:43:p:5065-5080



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2133898_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Oluwaseyi Ebenezer Olalere
Author-X-Name-First: Oluwaseyi Ebenezer
Author-X-Name-Last: Olalere
Author-Name: Janine Mukuddem-Petersen
Author-X-Name-First: Janine
Author-X-Name-Last: Mukuddem-Petersen
Title: The effect of firm-level uncertainty on R&D investment and corporate risk-taking of firms in BRICS countries: a simultaneous approach
Abstract: 
 This study examines the effect of firm-level uncertainty on R&D investment and corporate risk-taking. The current study uses unbalanced panel data of nonfinancial listed firms in BRICS countries (i.e. Brazil, Russia, India, China, and South Africa) for the period 2009–2020, totalling 24,564 observations. We applied a robust two-step generalized method of moments (GMM) to estimate the model and control for endogeneity issues. The findings show that firm-level uncertainty significantly influences R&D investment and corporate risk-taking in BRICS countries. The panel vector autoregression (PVAR) provides more robust results and confirms the significant impact of firm-level uncertainty on R&D investment and corporate risk-taking. The result indicates that firm-level uncertainty has a significant negative effect on R&D investment but a significant positive impact on corporate risk-taking. This study offers important implications for managers, policymakers, and investors in emerging markets where the relationship has remained ambiguous and applies both theories to analytically investigate the impact of uncertainty on R&D investment and corporate risk-taking of firms in BRICS countries.
Journal: Applied Economics
Pages: 5033-5047
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133898
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133898
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:43:p:5033-5047



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2136358_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sihong Chen
Author-X-Name-First: Sihong
Author-X-Name-Last: Chen
Author-Name: Yu Yvette Zhang
Author-X-Name-First: Yu Yvette
Author-X-Name-Last: Zhang
Author-Name: Shaosheng Jin
Author-X-Name-First: Shaosheng
Author-X-Name-Last: Jin
Title: Spousal dependence and intergenerational transmission of body mass index
Abstract: 
 Obesity and overweight have become increasingly prevalent in developing countries like China. This paper explores the evolvement of body mass index (BMI) of the Chinese population using a nationally representative sample. Focusing on familial transmission of BMI, we model married couple’s BMI jointly and explore how parents’ BMI affect children’s BMI. In particular, we use spousal and parental characteristics as proxy variables to account for potential omitted variables bias and explicitly model common couple effect with the correlated random-effects model for couple’ BMI. Our analysis suggests strong and positive spousal dependence and intergenerational transmissions of BMI in Chinese families. The influences of spousal BMI, parental BMI and a variety of social economic characteristics are found to depend on gender, region of residence (urban versus rural) and evolve over time. We find positive effects of spousal BMI that are significant, asymmetric (greater for wife than for husband), and generally vary across regions. For grown children, we find parental BMI to be the most important predictors for children’s BMI. Since families can play an essential role in preventing obesity, our results can be useful for developing health intervention programs and promoting healthy lifestyle.
Journal: Applied Economics
Pages: 5081-5096
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136358
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2136358
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:43:p:5081-5096

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2137294_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: John N Inekwe
Author-X-Name-First: John N
Author-X-Name-Last: Inekwe
Author-Name: Brantley Liddle
Author-X-Name-First: Brantley
Author-X-Name-Last: Liddle
Title: The role of renewable energy sources in residential electricity prices: A club convergence analysis across selected European countries
Abstract: 
 This research analyses the convergence of residential electricity prices in 22 European countries between 1995 and 2019. The findings reveal the existence of two sub-convergent clubs of residential electricity prices. Half of the countries studied belong to the club with higher residential electricity prices, while the other half belong to the lower-price club. Household income increases the probability of belonging to the club of lower residential electricity prices. An increase in heating degree days decreases the probability of belonging to the club of lower residential electricity prices. A similar effect is observed for the price of non-renewable energy sources used in electricity production. Further, although a country’s likelihood of belonging to the club of lower residential electricity prices diminishes with a rise in the share of renewable electricity production, the converse pattern is obtained at the residential level, such that residential renewable electricity share has a beneficial effect. Our findings suggest that households have benefitted in paying lower prices for renewable sourced electricity. Therefore, this research indicates that ongoing clean energy initiatives and the availability of affordable substitutes for conventionally generated electricity are being realized to a certain extent, improving electricity markets for the countries we analysed.
Journal: Applied Economics
Pages: 5157-5171
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2137294
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2137294
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:44:p:5157-5171



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2138817_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tetsuya Kamamura
Author-X-Name-First: Tetsuya
Author-X-Name-Last: Kamamura
Author-Name: Yuhsuke Koyama
Author-X-Name-First: Yuhsuke
Author-X-Name-Last: Koyama
Author-Name: Tomoharu Mori
Author-X-Name-First: Tomoharu
Author-X-Name-Last: Mori
Author-Name: Taizo Motonishi
Author-X-Name-First: Taizo
Author-X-Name-Last: Motonishi
Author-Name: Kazuhito Ogawa
Author-X-Name-First: Kazuhito
Author-X-Name-Last: Ogawa
Title: Loot box gambling and economic preferences: a survey analysis of Japanese adolescents and young adults
Abstract: 
 With the increasing use of social-network games, game addiction has become a serious challenge to the world. This study investigates the effects of risk preference, loss aversion, and time preference on the behaviour of Japanese adolescents and young adults purchasing ‘Gacha’, or loot box gambling, in social-network games. We surveyed 1,210 respondents, aged 12 to 23 years; approximately 34% of the respondents had purchased ‘Gacha’. We found that loss-averse and risk-averse female respondents had less experience paying for ‘Gacha’, with their highest billing amount charged per month being lower than that of other female respondents. Furthermore, future-oriented female respondents had less payment experience than present-oriented ones, with the highest billing amount charged per month for the former respondents being also lower. The highest billing amount charged per month of loss-averse male respondents was significantly lower than that of other male respondents.
Journal: Applied Economics
Pages: 5213-5229
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138817
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138817
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:44:p:5213-5229



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2137457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Norman Sedgley
Author-X-Name-First: Norman
Author-X-Name-Last: Sedgley
Title: Trade, competition and innovation
Abstract: 
 The impact of international trade on technological change and productivity is an important and well-researched topic. The existing literature focuses on spillovers of knowledge, market size effects, Schumpeterian effects, and escape competition effects. Separately, economists working in the areas of Economic Growth and Industrial Organization have looked for a relationship, often nonlinear, between market structure and innovation. This paper investigates the indirect role of trade on innovation through a contribution to domestic competition. Using a unit of analysis of HJT technology subclass, I construct a panel data set that spans the period from 2002 through 2012. Trade adjusted and unadjusted concentration ratios are constructed for HJT technology subclasses and used to deconstruct the contribution of trade to innovation through this indirect channel. This novel approach to the data also uncovers strong evidence of a nonlinear relationship between innovation and market concentration.
Journal: Applied Economics
Pages: 5189-5201
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2137457
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2137457
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:44:p:5189-5201



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2136617_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yong Wang
Author-X-Name-First: Yong
Author-X-Name-Last: Wang
Author-Name: Shilin Zheng
Author-X-Name-First: Shilin
Author-X-Name-Last: Zheng
Author-Name: Weijie Luo
Author-X-Name-First: Weijie
Author-X-Name-Last: Luo
Title: Does specialization improve firm efficiency? Evidence from the vertical unbundling reform in the Chinese electricity industry
Abstract: 
 Many electricity markets in the world have experienced the vertical unbundling where the generation and transmission sectors were separated from a vertically-integrated monopolistic power company. This restructuring could positively impact the productivity of the firms because of intensified competition and enhanced autonomy but could also negatively aect the productivity because of the loss of synergy and scaled economy. By exploiting the vertical unbundling that took place in China in 2003, this study finds that vertical unbundling increased the labour use of the generation firms and the material use of the transmission firms. Additional investigation reveals that generation firms suffer from an efficiency loss in labour use due to the loss of coordination after vertical unbundling and the transmission firms face an increased transaction cost in acquiring material and bear the additional cost transferred from the efficiency loss of the upstream generation firms. Our findings suggest that benefits of vertical unbundling relative to integration critically hinge on the market structure of the industry.
Journal: Applied Economics
Pages: 5135-5156
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136617
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2136617
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:44:p:5135-5156



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2137456_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Daniel J. Parisian
Author-X-Name-First: Daniel J.
Author-X-Name-Last: Parisian
Author-Name: Xintong Wang
Author-X-Name-First: Xintong
Author-X-Name-Last: Wang
Title: Learning and not using? The effect of degree attainment on illicit drug use among at-risk youth
Abstract: 
 This paper examines the causal effect of earning a GED or vocational degree on future illicit drug use, employing random assignment into the United States’ most comprehensive education and vocational training program for at-risk youth – Job Corps – as a source of exogenous variability in degree attainment. Nonparametric bounds under relatively weak monotonicity assumptions are constructed to allow the random assignment to violate the exclusion restriction when used as an instrument. We also use a fixed effect model and propensity score weighting to supplement the results. The results from different methods suggest that degree attainment may have the most significant effect in reducing the illicit drug use of blacks, while the results for whites and Hispanics are less conclusive.
Journal: Applied Economics
Pages: 5172-5188
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2137456
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2137456
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:44:p:5172-5188



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211335_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongsheng Fang
Author-X-Name-First: Hongsheng
Author-X-Name-Last: Fang
Author-Name: Dandan Dang
Author-X-Name-First: Dandan
Author-X-Name-Last: Dang
Author-Name: Nan Fu
Author-X-Name-First: Nan
Author-X-Name-Last: Fu
Author-Name: Wen-Quan Hu
Author-X-Name-First: Wen-Quan
Author-X-Name-Last: Hu
Title: Enterprise income tax and corporate innovation: evidence from China
Abstract: 
 Using China’s 2008 enterprise income tax (EIT) reform, this study examines the effect of EIT on corporate innovation comprehensively. Based on accurate identification of the direction of changes in the corporate tax rate, we introduce two dummy variables of tax rate decline and escalation to investigate the impact of EIT changes simultaneously. Using the firm-level dataset from China’s A-share listed companies, we find that the innovation level of tax-rate-declining enterprises will increase by 0.2%, whereas the innovation level of tax-rate-increasing enterprises will decrease by 0.4%. The dynamic effect demonstrates that the aforementioned promoting and inhibitory effects are continuous. Heterogeneity analyses reveal that the changes in the EIT rates have a greater impact on the innovation level of enterprises with high innovation demand, manufacturing enterprises, enterprises in a high rule of law environment, and enterprises in the eastern region. Our study highlights the importance of the EIT reform on corporate innovation and guides how to better optimize the effectiveness of such policies.
Journal: Applied Economics
Pages: 5230-5249
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2023.2211335
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211335
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:44:p:5230-5249



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2138816_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yoichiro Fujii
Author-X-Name-First: Yoichiro
Author-X-Name-Last: Fujii
Author-Name: Yusuke Osaki
Author-X-Name-First: Yusuke
Author-X-Name-Last: Osaki
Title: Effect of regret sensitivity on self-insurance and self-protection
Abstract: 
 We examine how regret sensitivity influences two types of effort to prevent losses: self-insurance and self-protection. Individuals are called regret sensitive when they suffer disutility from the anticipated regret of considering their ex post best wealth. The keys to determining the effect of regret are the probability of loss in self-insurance and the sensitivity to regret in self-protection. Comparing the case of expected utility, regret-sensitive individuals tend to increase (decrease) their exertion of self-insurance when the probability of loss is low (high). Regret-sensitive individuals tend to decrease (increase) self-protection when they care about regret sufficiently (insufficiently). This result illustrates observed loss prevention practices.
Journal: Applied Economics
Pages: 5202-5212
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138816
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138816
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:44:p:5202-5212

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2138821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dan Wu
Author-X-Name-First: Dan
Author-X-Name-Last: Wu
Author-Name: Panpan Zheng
Author-X-Name-First: Panpan
Author-X-Name-Last: Zheng
Title: The impact of tax integrity on corporate innovation: evidence from China
Abstract: 
 This study analyzes the impact of enterprise integrity on corporate innovation from the perspective of the contract theory. We used the tax credit ratings of listed firms provided by China’s State Administration of Taxation from 2014 to 2017 to measure enterprise integrity. Our results suggest that enterprises with tax integrity have a higher intensity of research and development (R&D) investment than those without. In addition, institutional investors and financing constraints play an incomplete intermediary role between tax integrity and corporate innovation. The impact of tax integrity on corporate innovation is heterogenous; tax integrity has a more significant impact on state-owned enterprises, non-high-tech enterprises, and enterprises in areas with lower marketization levels. This study does not only complement the theoretical research on integrity and corporate innovation; it also provides empirical evidence for stakeholders to understand the economic consequences of integrity from the perspective of the contract theory.
Journal: Applied Economics
Pages: 5303-5316
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138821
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138821
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:45:p:5303-5316



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2139804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yan Chen
Author-X-Name-First: Yan
Author-X-Name-Last: Chen
Author-Name: Xi Wang
Author-X-Name-First: Xi
Author-X-Name-Last: Wang
Title: Social trust and income of rural residents: Evidence from China
Abstract: 
 We examine the relationship between social trust and residential income in rural China by using two microeconomic survey datasets. Social indicators of trust are measured from three dimensions: personalized trust, or trust in relatives and friends; generalized trust, or trust in people other than relatives and friends and public trust, or trust in the state and public officials. Our results show that personalized trust can increase rural residents’ income, while generalized trust may reduce their income. In addition, a significant positive relation is found between public trust and income only in the West and East of China. Three underlying economic mechanisms are also identified: health effects, organizational learning effects, and insurance effects. Furthermore, we empirically assess the impact of the different types of social trust on sources of residential income. The results indicate that personalized trust enhances residents’ financial assets income, generalized trust raises business income, and public trust contributes to salary income.
Journal: Applied Economics
Pages: 5352-5368
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2139804
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139804
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:45:p:5352-5368



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2138818_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yi-Chieh Wen
Author-X-Name-First: Yi-Chieh
Author-X-Name-Last: Wen
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Author-Name: Xiaoyue Chen
Author-X-Name-First: Xiaoyue
Author-X-Name-Last: Chen
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Spillover effects of the US stock market and the predictability of returns: international evidence based on daily data
Abstract: 
 This paper investigates the spillover effect of lagged US daily returns on stock return predictability across 17 developed markets from January 1st, 1972 through August 31st, 2022. Using daily returns series, we find that lagged US returns is a superior predictor for future returns in international markets while including the lagged domestic returns and considering US negative or extreme returns. The predictive power of lagged US daily returns, nonetheless, substantially weakens during the recent COVID period. Our results imply that the degrees of stock return predictability and spillovers across markets are driven by the evolutionary market conditions, the channels of information transmission, and information leadership.
Journal: Applied Economics
Pages: 5251-5266
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138818
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138818
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:45:p:5251-5266



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2138819_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yao Hou
Author-X-Name-First: Yao
Author-X-Name-Last: Hou
Author-Name: Rong Li
Author-X-Name-First: Rong
Author-X-Name-Last: Li
Author-Name: Danxia Xie
Author-X-Name-First: Danxia
Author-X-Name-Last: Xie
Author-Name: Longtian Zhang
Author-X-Name-First: Longtian
Author-X-Name-Last: Zhang
Author-Name: Qingquan Zhang
Author-X-Name-First: Qingquan
Author-X-Name-Last: Zhang
Title: The evolution of monetary rules with financial stability considerations
Abstract: 
 In this study, we estimate and investigate the evolution of monetary rules in China and the United States in the 21st century. Our goal is to examine whether financial stability has been taken into consideration in the decision-making of monetary policy. By proposing a new method, we estimate the structural breaks, split the entire time period into multiple monetary regimes, and estimate an extended Taylor rule with financial stability considerations and its evolution over time. Our findings show that China’s monetary policy emphasized the financial stress of the U.S. immediately before and during the 2008 global financial crisis. However, the coefficient for the U.S. financial stress has decreased since then, which shows a weaker concern on this index, and instead, the Chinese policymakers are emphasizing stronger on their domestic financial market.
Journal: Applied Economics
Pages: 5267-5286
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138819
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138819
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:45:p:5267-5286



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2138822_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jinrong Yu
Author-X-Name-First: Jinrong
Author-X-Name-Last: Yu
Author-Name: Yun Wei
Author-X-Name-First: Yun
Author-X-Name-Last: Wei
Author-Name: Zhiqiang Zhou
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Zhou
Title: The impact of human capital agglomeration on the green upgrading of the manufacturing industry in the Yangtze River Economic Belt
Abstract: 
 Based on the panel data of provinces and cities from 2002 to 2019, this study took the human capital agglomeration as the threshold variable and analysed the threshold effect of human capital agglomeration on the green upgrading of the manufacturing industry in the Yangtze River Economic Belt. Based on the dynamic panel threshold model, human capital agglomeration was found to have a significant threshold effect on green upgrading of the manufacturing industry in the Yangtze River Economic Belt. When human capital agglomeration crosses a certain threshold, the impact effect of manufacturing green upgrading decreases.
Journal: Applied Economics
Pages: 5317-5329
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138822
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138822
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:45:p:5317-5329



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2139802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Philipp Lieberknecht
Author-X-Name-First: Philipp
Author-X-Name-Last: Lieberknecht
Author-Name: Philip Vermeulen
Author-X-Name-First: Philip
Author-X-Name-Last: Vermeulen
Title: Saving at the top and the long-run relationship between wealth and income inequality
Abstract: 
 This paper analyzes the joint long-run evolution of wealth and income inequality. We find that top wealth and income shares were cointegrated over the past century in France and the US. We rationalize this finding in two macroeconomic heterogeneous agent models featuring growth and incomplete markets, respectively. In both frameworks, the co-movement of top wealth and income shares is determined by the relative saving rate at the top, i.e. the ratio of the saving rate of rich individuals to the aggregate saving rate. Our empirical results suggest that relative saving rates at the top have been fairly stable over time, thus explaining the observed tight co-movement between top wealth and income shares over the past century.
Journal: Applied Economics
Pages: 5330-5351
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2139802
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139802
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:45:p:5330-5351



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2138820_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xuyi Liu
Author-X-Name-First: Xuyi
Author-X-Name-Last: Liu
Author-Name: Jiawen Liu
Author-X-Name-First: Jiawen
Author-X-Name-Last: Liu
Author-Name: Shun Zhang
Author-X-Name-First: Shun
Author-X-Name-Last: Zhang
Title: A regional analysis of the urbanization-energy-economy-emissions nexus in China: based on the environmental Kuznets curve hypothesis
Abstract: 
 The process of urbanization has accelerated in the recent decades, bringing with it an enormous impact on climate change. This paper examines the relationships between urbanization, energy consumption, and economic growth on carbon dioxide emissions in regions of China during the 1997–2019 period. Additionally, the environmental Kuznets curve (EKC) hypothesis is also examined. The cross-sectional dependence test indicates that no cross-sectional dependence is present in the panel data, and six unit root tests show that all variables are integrated on the order of one, I(1). Results of all cointegration tests provide evidence for a long-term equilibrium in the selected time series data. The fully modified ordinary least squares (FMOLS) and the augmented mean group (AMG) estimator indicate that the EKC hypothesis is valid in all regions except Western China. Given its abundant renewable resources, this region can vigorously develop renewable energy and energy storage technology. Moreover, energy consumption can lead to emissions increasing, while it is not certain that urbanization leads to emissions decreasing. Clean technologies for energy and intensive development of urban area should be emphasized. Finally, the results of pairwise Dumitrescu-Hurlin (DH) Panel causality test between each pair of variables are complicated and mixed in different regions.
Journal: Applied Economics
Pages: 5287-5302
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138820
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138820
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:45:p:5287-5302

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2139808_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: Michael A. Nelson
Author-X-Name-First: Michael A.
Author-X-Name-Last: Nelson
Title: Global coronavirus business closures: influences of executive gender, firm characteristics, and government involvement
Abstract: 
 This paper uses firm-level data across about 30 nations to study the effect of the coronavirus on firms’ closures, with attention to firms with female managers and female owners. We also consider the influences of firms’ characteristics, the role of the government, economy-wide attributes, and industry type. The estimation uses a logit strategy, with country-year level clustered standard errors reported and industry fixed-effects included. Results show that, with somewhat limited statistical support, firms with female managers were more likely to exit, while those with female owners were less likely to. Further, fertility and gender inequality made firms’ exit more likely. Larger and older firms were less likely to exit. Finally, firms located in urbanized nations and those located in nations with larger governments were more likely to close, while the reverse was true in nations with better governance. We find weak support for the notion that heightened and aggressive government efforts to control the pandemic contributed to business closures. Finally, we find that various firm-level and macro factors impact firms’ exit during the COVID-19 pandemic.
Journal: Applied Economics
Pages: 5384-5402
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139808
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139808
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:46:p:5384-5402



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2139809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kristiina Ala-Kokko
Author-X-Name-First: Kristiina
Author-X-Name-Last: Ala-Kokko
Author-Name: Lawton Lanier Nalley
Author-X-Name-First: Lawton Lanier
Author-X-Name-Last: Nalley
Author-Name: Alvaro Durand-Morat
Author-X-Name-First: Alvaro
Author-X-Name-Last: Durand-Morat
Author-Name: Wei Yang
Author-X-Name-First: Wei
Author-X-Name-Last: Yang
Title: Impact of disjunctive marking on consumer preferences
Abstract: 
 Disjunctive marking (‘or’ or ‘and/or’) has been ruled illegal under the U.S. Customs and Border Protection’s country-of-origin labelling regulations. Using an ongoing dispute in Puerto Rico as a medium, data was collected through a choice experiment and a random parameter logit model was employed to estimate the impact of disjunctive marking on consumers’ willingness-to-pay and market shares. We find that disjunctive marking provides Rico branded rice a $0.28 premium per three-pound bag of medium-grain rice. Additionally, 23% of the Puerto Rican rice market is being reallocated to Rico through the use of disjunctive marking. This study is the first attempt at estimating the economic impacts of disjunctive marking and provides insights on an innovative mislabelling technique that impacts consumer preferences.
Journal: Applied Economics
Pages: 5403-5418
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139809
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139809
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:46:p:5403-5418



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2139811_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Moonsoo Kang
Author-X-Name-First: Moonsoo
Author-X-Name-Last: Kang
Title: ETFs and information asymmetry of underlying securities: evidence on the volume-conditioned return autocorrelation
Abstract: 
 This study investigates whether exchange-traded funds (ETFs) increase the information asymmetry of underlying securities by examining the relationship between the US equity ETF ownership or turnover and the volume-conditioned daily return autocorrelation proposed by. Specifically, we find that stocks with higher ETF ownership exhibit weaker return reversals. We confirm that the ETF ownership effect is robust in a variety of settings, such as various volume measures, within industry, and various regression frameworks. We also address the difference between the volume-conditioned autocorrelation and the unconditional autocorrelation. Moreover, we document that higher ETF turnover leads to weaker return reversals, independently of the ETF ownership effect. These findings suggest that higher ETF presence allows more informed traders to engage in trades or more liquidity traders to migrate to ETFs from underlying securities, resulting in higher information asymmetry for underlying securities.
Journal: Applied Economics
Pages: 5434-5450
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139811
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139811
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:46:p:5434-5450



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2139813_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Luis Diaz-Serrano
Author-X-Name-First: Luis
Author-X-Name-Last: Diaz-Serrano
Author-Name: Mercedes Teruel-Carrizosa
Author-X-Name-First: Mercedes
Author-X-Name-Last: Teruel-Carrizosa
Title: Job-to-job transitions and the job satisfaction puzzle: a diff-in-diff analysis for eleven EU countries
Abstract: 
 This paper studies the impact of different types of job-to-job transitions (from salaried employment to self-employment, from self-employment to salaried employment, and within salaried employment) on job satisfaction. Considering the three types of job transition, allows us to separate the pure mobility effect from the type of employment effect. We design an identification strategy based on the diff-in-diff approach. This is possible because our panel data allow us to compare the same individuals before and after job-to-job transitions occur. Our findings indicate that individuals who move from salaried employment to self-employment increase their overall job satisfaction more than workers who carry out other types of job transitions, while the impact of job changes on satisfaction in other job domains is mixed. We also find heterogeneous interactive effects of previous unemployment spells and self-perceived skill mismatch with job transitions depending on the type of transition. While skill mismatch is more important in the transition from salaried employment to self-employment, previous unemployment is more important for job changes within salaried employment.
Journal: Applied Economics
Pages: 5464-5483
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139813
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139813
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:46:p:5464-5483



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2139812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abdullah Mohammed Al-Malki
Author-X-Name-First: Abdullah Mohammed
Author-X-Name-Last: Al-Malki
Author-Name: Mehboob-Ul Hassan
Author-X-Name-First: Mehboob-Ul
Author-X-Name-Last: Hassan
Author-Name: Jabbar Ul-Haq
Author-X-Name-First: Jabbar
Author-X-Name-Last: Ul-Haq
Title: Nexus between remittance outflows and economic growth in GCC countries: the mediating role of financial development
Abstract: 
 An important but underestimated area in international economics is the study of the impacts of remittance outflows and financial development on the economic growth of the remitting countries. This study explores how remittance outflows and financial development can affect the economic growth of the Gulf Cooperation Council (GCC) region using panel data from 1999 to 2018. The outcome reveals that remittance outflows are negatively related to economic growth. While financial development is effective in stimulating economic growth and is significant, the moderating role of financial development is growth-enhancing in the GCC region. Our findings are robust and insensitive to different econometric techniques. To benefit from immigrants, this research suggests a stimulus policy that GCC countries should facilitate foreign workers to settle sustainably and participate in investment activities, and increase consumption in their host country.
Journal: Applied Economics
Pages: 5451-5463
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139812
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139812
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:46:p:5451-5463



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2139807_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Marta Pascual-Sáez
Author-X-Name-First: Marta
Author-X-Name-Last: Pascual-Sáez
Author-Name: Paloma Lanza-Leon
Author-X-Name-First: Paloma
Author-X-Name-Last: Lanza-Leon
Title: The mismatch of over-education and earnings in Spain: how big are differences?
Abstract: 
 This paper attempts to examine the incidence of over-education in Spain and to analyse the role over-education plays on an individual’s income distinguishing by gender. Following Freeman’s perspective, we can confirm over-education is due to an oversupply of qualified labour. We study over-education applying different matching techniques based on propensity score methods with microdata drawn from the European Statistics on Income and Living Conditions (EU-SILC, 2009–2019). Our results show that the incidence of over-education has increased over time and there exist huge differences by gender. Findings also demonstrate that over-education presents a negative effect on income. In fact, the real annual average earnings from over-educated women (men) can be approximately 7,000 (5,000) euros less than the average earnings of women (men) who were not over-educated. Policy implications are discussed in the light of the empirical results of our analysis.
Journal: Applied Economics
Pages: 5369-5383
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139807
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139807
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:46:p:5369-5383



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2139810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Valentinas Rudys
Author-X-Name-First: Valentinas
Author-X-Name-Last: Rudys
Author-Name: Daniel Svogun
Author-X-Name-First: Daniel
Author-X-Name-Last: Svogun
Title: Optimal cryptocurrency portfolio allocation over the life cycle
Abstract: 
 Most of the literature on life cycle investment portfolio analysis focuses on the allocation between risky stocks and safe bonds. We introduce a new risky asset class, cryptocurrency, to a standard consumption-investment life cycle model. Our model suggests that the optimal investment profile in cryptocurrencies declines with age. Young investors mainly invest in cryptocurrency. As age and wealth increase, investors transition to mostly stocks mid-career and mostly bonds in retirement. A welfare analysis shows significant utility losses from not participating in the cryptocurrency market or not adjusting cryptocurrency portfolio shares throughout the life cycle.
Journal: Applied Economics
Pages: 5419-5433
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139810
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139810
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:46:p:5419-5433

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140111_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Trang Huyen Dang
Author-X-Name-First: Trang Huyen
Author-X-Name-Last: Dang
Author-Name: Cuong Viet Nguyen
Author-X-Name-First: Cuong Viet
Author-X-Name-Last: Nguyen
Author-Name: Oanh Thu Thi Nguyen
Author-X-Name-First: Oanh Thu Thi
Author-X-Name-Last: Nguyen
Author-Name: Tung Duc Phung
Author-X-Name-First: Tung Duc
Author-X-Name-Last: Phung
Title: Do positive income shocks benefit children’s education? Evidence from Vietnam
Abstract: 
 This study investigates the causal effect of positive income shocks on education in Vietnam using the 1993 and 1998 Vietnam Living Standard Surveys. We measure income shocks by families’ lottery winnings, controlling for lottery purchases. In general, lottery winnings have no significant effect on school enrolment. However, we find a positive and significant effect from lottery winnings on expenditure for children’s education. A 1% increase in lottery winnings increases expenditure on children’s education by 0.12%. Interestingly, we find a stronger effect from lottery winnings on school enrolment and expenditure for education for girls than for boys, helping to decrease gender inequality in education.
Journal: Applied Economics
Pages: 5528-5552
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140111
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140111
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:47:p:5528-5552



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140113_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chih-Hai Yang
Author-X-Name-First: Chih-Hai
Author-X-Name-Last: Yang
Title: External technological sources, subsidies and firm productivity in China
Abstract: 
 Productivity is a key factor that differentiates firm competitiveness. To promote productivity, the internal source, research and development expenditure, is undoubtedly a primary driver, while various external sources are also critical. This study examines the determinants of productivity in Chinese firms, focusing on external technological sources, especially policy-induced factors, including tariff-free imported intermediates, forced technology transfer through international joint ventures (IJVs) and production subsidies. Based on firm–customs matched data for 2001–2007, we find that the technologies embodied in imported intermediates and IJVs in technology-intensive sectors positively influence productivity. Production subsidies also have a significant and positive relationship with productivity. Overall, the above findings suggest the effectiveness of policy instruments. Further heterogeneous analyses highlight the differences in productivity effects by isolating the above factors individually in various dimensions.
Journal: Applied Economics
Pages: 5572-5590
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140113
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140113
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:47:p:5572-5590



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140110_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Amir Eslami Andargoli
Author-X-Name-First: Amir
Author-X-Name-Last: Eslami Andargoli
Author-Name: Hassan F. Gholipour
Author-X-Name-First: Hassan F.
Author-X-Name-Last: Gholipour
Author-Name: Mohammad Reza Farzanegan
Author-X-Name-First: Mohammad Reza
Author-X-Name-Last: Farzanegan
Title: Government’s support for adoption of digital technologies and firms’ innovation during the COVID-19 pandemic
Abstract: 
 The purpose of this study is to examine the relationship between government support, through technical assistance or subsidies, for adoption of digital technologies and the introduction of new or improved products or services by firms. By applying Probit regression to data provided in World Bank Enterprise Surveys covering the period in late 2020 to early 2021 for three lower-middle-income and high-income economies, we find that governmental support for adoption of digital technologies raised the probability of an enterprise’s innovation in those economies.
Journal: Applied Economics
Pages: 5518-5527
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140110
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140110
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:47:p:5518-5527



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140114_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: César Alonso-Borrego
Author-X-Name-First: César
Author-X-Name-Last: Alonso-Borrego
Author-Name: Raquel Carrasco
Author-X-Name-First: Raquel
Author-X-Name-Last: Carrasco
Title: Intimate partner violence and women’s health: the private and social burden
Abstract: 
 We assess the impact of intimate partner violence (IPV) against women on their health and healthcare use, finding that IPV substantially worsens health, and increases the hazards of hospitalization, emergency care, and sedative consumption. We exploit two compatible samples from the 2011 Spanish Violence Against Women and National Health surveys. We estimate the effect of IPV on health using a bivariate model that exploits woman’s awareness of IPV among female acquaintances to account for IPV endogeneity, and the effect of IPV on healthcare through a two-stage procedure. Hence, IPV originates high private cost, but also public, by draining healthcare resources.
Journal: Applied Economics
Pages: 5591-5611
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140114
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140114
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:47:p:5591-5611



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140112_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jeremy Kronick
Author-X-Name-First: Jeremy
Author-X-Name-Last: Kronick
Author-Name: Steve Ambler
Author-X-Name-First: Steve
Author-X-Name-Last: Ambler
Title: Predicting financial crises: debt versus debt service ratios
Abstract: 
 The academic literature and the popular press emphasize high levels of household debt as a threat to financial stability. Using Canadian data, we show that the household debt service ratio is a better predictor of financial distress than measures focused on debt ratios. We construct a new financial vulnerability barometer for the Canadian economy in which the debt service ratio improves its ability to predict periods of financial vulnerability. We also show that new borrowing, while increasing economic growth in the short run, leads to an increase in debt servicing which contributes to slumps in activity and to financial instability. Finally, we show that the debt service ratio also has significant out-of-sample predictive power for growth and financial crises.
Journal: Applied Economics
Pages: 5553-5571
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140112
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140112
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:47:p:5553-5571



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140108_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yanhui Jiang
Author-X-Name-First: Yanhui
Author-X-Name-Last: Jiang
Author-Name: Yun Hong
Author-X-Name-First: Yun
Author-X-Name-Last: Hong
Title: National media and investor sentiment dynamics: evidence from China central television using a wavelet approach
Abstract: 
 This paper investigates the multiscale dynamic relations between China Central Television News (CCTV News) and investor sentiment in China by employing the wavelet method. We document significant positive correlations between CCTV News’s economic focus/economic tone and investor sentiment at the raw and high-frequency levels using the wavelet DCC-GARCH model. Wavelet Granger causality tests and wavelet coherence analysis confirm that the economic focus/economic tone of CCTV News is dominant and leads investor sentiment for short-term investors. At the same time, investor sentiment can conversely affect CCTV News’s economic focus/economic tone for medium-term investors. There is a long-term interdependence between CCTV News’s economic focus/tone and investor sentiment. Furthermore, the interaction between CCTV News and investor sentiment increases in turbulent periods compared with relatively calm periods. Finally, we find that CCTV News’s economic focus and tone positively affect the stock market returns. The influence seems to be an overreaction in the short term and an underreaction in the long term.
Journal: Applied Economics
Pages: 5485-5503
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140108
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140108
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:47:p:5485-5503



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140109_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenxiang Sheng
Author-X-Name-First: Wenxiang
Author-X-Name-Last: Sheng
Author-Name: Chengyuan Wang
Author-X-Name-First: Chengyuan
Author-X-Name-Last: Wang
Author-Name: Jun Li
Author-X-Name-First: Jun
Author-X-Name-Last: Li
Title: The influences of peers on outpatient physicians’ diagnostic scan decision-making
Abstract: 
 Outpatient physicians’ diagnostic scan decision-making is not only related to the quality of medical diagnosis but also connected with the operations efficiency of the hospital. Identifying and understanding how outpatient physicians react to their peers in diagnostic scan decisions is an important economics issue that can help hospitals improve their operations effectiveness. Based on the data collected from a Chinese 3A Grade hospital, we reveal that peers have negative influences on outpatient physicians in deciding the number of scan orders during a shift. Relative to male physicians, female physicians are more likely to be influenced by their peers. Moreover, physicians in the surgical medicine departments are more sensitive to peers regarding decisions on scan orders, relative to those in the internal medicine departments. We further find that several conventional social interaction factors, including learning, status, and homophily, do not act on peer influence. While resource spillover caused by shared scan resource constraints, patient-volume and physician-volume can enlarge the negative peer influence, suggesting that resource spillover should be a significant driving force of the peer influence in deciding the number of scan orders. Finally, theoretical and management implications are discussed.
Journal: Applied Economics
Pages: 5504-5517
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140109
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140109
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:47:p:5504-5517

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140115_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiuwen Chen
Author-X-Name-First: Xiuwen
Author-X-Name-Last: Chen
Title: Are the shocks of EPU, VIX, and GPR indexes on the oil-stock nexus alike? A time-frequency analysis
Abstract: 
 This paper distinguishes whether the shocks of various uncertainties on oil-stock correlation are alike from a time-frequency perspective. Specifically, using data from December 1997 to April 2021, the effects of EPU, VIX, and GPR on the interaction between Brent oil prices and stock indices in the G7 and BRIC countries are examined. The results reveal that the influence of EPU, VIX, and GPR on the oil-stock co-movement is dependent upon investment horizons. In developed markets, the most influential uncertainty index is the VIX, followed by EPU and GPR. In emerging markets, the interactions between oil prices and stock indices in Brazil and India are more susceptible to the VIX, followed by GPR and EPU. For China, the co-movement relation is more sensitive to EPU. Moreover, better prediction power on the stock market is obtained by combining oil prices and EPU or VIX. Our findings provide a crucial reference for financial risk management.
Journal: Applied Economics
Pages: 5637-5652
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140115
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140115
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:48:p:5637-5652



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208847_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yixuan Wang
Author-X-Name-First: Yixuan
Author-X-Name-Last: Wang
Author-Name: Qianbin Feng
Author-X-Name-First: Qianbin
Author-X-Name-Last: Feng
Author-Name: Lingxi Jiang
Author-X-Name-First: Lingxi
Author-X-Name-Last: Jiang
Title: Broadband infrastructure and local government fiscal risk: evidence from China
Abstract: 
 Network infrastructure is a cornerstone of Internet applications and digital economy. In this paper, we primarily evaluate the effect of broadband infrastructure on local government fiscal risk by using the enforcement of the ‘Broadband China’ Strategy (BCS) as an exogenous shock. After a simple theoretical analysis by establishing a three-department endogenous growth model, we conduct a staggered Difference-in-Differences (DID) estimation and use a panel datum of China’s 285 prefecture-level cities from 2003 to 2019, finding that the BCS policy apparently reduces fiscal risks of the pilot cities compared to the untreated ones. This impact is achieved through two channels: the enlargement of data creation and the enhancement of data use efficiency. Moreover, we discover that this policy contributes more to cities with mature IT industry, deepened information consumption, strong innovation capabilities and flourishing cross-border e-commerce. In addition, it is demonstrated that cities with severe financial burden always benefit more from the BCS policy; meanwhile, the policy effects will spill over to surrounding districts. Finally, we find that the construction of broadband infrastructure greatly improves residents’ satisfaction with local government. Overall, this paper provides constructive insights into broadband infrastructure for diminishing local government fiscal risks in developing countries.
Journal: Applied Economics
Pages: 5613-5636
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2023.2208847
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208847
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:48:p:5613-5636



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140116_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhenxiang Zhao
Author-X-Name-First: Zhenxiang
Author-X-Name-Last: Zhao
Author-Name: Shanshan Wang
Author-X-Name-First: Shanshan
Author-X-Name-Last: Wang
Title: The marriage consumption puzzle—evidence from China
Abstract: 
 Marriage, as the most crucial event in one’s lifetime, not only has a significant effect on one’s future consumer preferences but also changes one’s consumer decisions. This paper addresses how individuals change their expenditure when the marital status changes, three models are developed to explore this issue based on the equilibrium of current consumption and consumption purpose with the consideration of income growth, expenditure on public goods and mating competitiveness for males and females. By selecting the married group in the panel data of China Family Panel Studies between 2016 and 2018, we use the propensity score to match all the married individuals during the 2 years and search a control group for each of them and, in addition, use the difference-in-differences (DID) method to examine the effects of marriage on individuals’ personal and public consumption. Benefiting to the model fitting the data relatively well, the results show that individual’s expenditure raises by 24% when married, with highly increasing items in public goods. At last, males cost 11.4% more than females after their marriage.
Journal: Applied Economics
Pages: 5653-5673
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140116
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140116
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:48:p:5653-5673



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140760_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tzeng Kae-Yih
Author-X-Name-First: Tzeng
Author-X-Name-Last: Kae-Yih
Title: The international spillover behaviour of implied volatilities and forecasting ability of spillover indices
Abstract: 
 In this study, we investigate the spillover behaviours of implied volatilities and test the forecasting power of spillover indices. By using a Diebold and Yilmaz’s (2012) framework, we capture a better overall picture of the developments of spillover effects and create a series of spillover indices by quantifying the spillover intensity for each rolling time window such that we are able to investigate the forecasting ability of spillover indices on market returns. There are several findings in this study including (1) the spillover indices of implied volatilities not only enable us to describe the spillover effects but also possess strong forecasting power on market returns, (2) implied volatilities which own emotional-related characteristic create stronger spillover mechanisms than spillover of market returns and (3) by observing the time-varying patterns of spillover indices of implied volatilities, we find that the peaks of spillover indices occur during well-known economic events such as the Lehman Brothers’ Bankruptcy and Greek debt restructuring.
Journal: Applied Economics
Pages: 5719-5735
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140760
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140760
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:48:p:5719-5735



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140117_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hui Xiao
Author-X-Name-First: Hui
Author-X-Name-Last: Xiao
Author-Name: Xian Liang
Author-X-Name-First: Xian
Author-X-Name-Last: Liang
Author-Name: Huiting Xiao
Author-X-Name-First: Huiting
Author-X-Name-Last: Xiao
Author-Name: Fangting Xie
Author-X-Name-First: Fangting
Author-X-Name-Last: Xie
Title: Family care, rural labour migration and land lease: A case study of Jiangxi Province, China
Abstract: 
 The farmland lease is an important way to improve the scale of farmland management and agricultural modernization. Based on survey data for 578 rural households in Jiangxi Province, a Tobit model, and intermediary effect analysis method were used to determine how family care affects farmland lease by influencing off-farm employment. The main conclusions were as follows: (1) When more members of a family needed care, more rural households tended to rent in farmland. Care for the elderly and care for children aged 0–4 years had no significant impact on farmland lease, but care for children aged 5–15 years had a significant and positive influence on farmland rent-in. (2) The number of members in need of care within the family did not significantly affect farmland rent-out, but the care of children aged 0–4 years significantly reduced the possibility of farmers renting out their farmland. (3) Family care reduced the possibility of farmers renting out land but promoted land rent-in by inhibiting labour migration. (4) The intermediary effect of out-county off-farm employment in the influence of family care on farmland lease was significant, but the intermediary effect of local off-farm employment was not significant.
Journal: Applied Economics
Pages: 5674-5686
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140117
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140117
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:48:p:5674-5686



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140119_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tareq Saeed
Author-X-Name-First: Tareq
Author-X-Name-Last: Saeed
Author-Name: Neeraj Nautiyal
Author-X-Name-First: Neeraj
Author-X-Name-Last: Nautiyal
Author-Name: Mobeen Ur Rehman
Author-X-Name-First: Mobeen Ur
Author-X-Name-Last: Rehman
Author-Name: Hamed Hamdan Alsulami
Author-X-Name-First: Hamed Hamdan
Author-X-Name-Last: Alsulami
Author-Name: Mohammad S. Alhothuali
Author-X-Name-First: Mohammad S.
Author-X-Name-Last: Alhothuali
Title: Do gulf stock markets share time varying connectedness
Abstract: 
 This article examines the presence of spillover and time varying correlation between returns of Islamic stock markets in the Gulf region. Our sample comprises six Gulf equity market returns i.e. Oman, the UAE, KSA, Bahrain, Qatar and Kuwait ranging from June 2005 to January 2022. We use spillover and wavelet multiple cross-correlation methods for data analysis. Our results highlight that the equity markets of Oman and UAE exhibit significant correlation with each other in the medium-run investment period which decreases in the short-run. UAE highlights significant integration with rest of the Gulf markets. Our results also highlight spillover between the stock returns of UAE and Oman during both short- and long-run periods. Among all markets, UAE appears to exhibit maximum integration with other markets. These results carry implications for the investment in the Gulf stock markets during different investment horizons.
Journal: Applied Economics
Pages: 5700-5718
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140119
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140119
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:48:p:5700-5718



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Do-Young Lee
Author-X-Name-First: Do-Young
Author-X-Name-Last: Lee
Author-Name: Won-Sik Hwang
Author-X-Name-First: Won-Sik
Author-X-Name-Last: Hwang
Title: Adoption and frequency of early morning delivery of food in Korea: an empirical analysis
Abstract: 
 Since the outbreak of the COVID-19 pandemic, consumers’ online grocery purchases have steadily increased in Korea. This study aimed to ascertain consumers’ characteristics that affect the frequency of using an innovative food delivery service, ‘early morning delivery (EMD)’. We make estimations based on the ordered probit model with sample selection that analyses the frequency of EMD use after selecting consumers with an online food purchase experience from all consumers. The empirical results show similarities and differences in the determinants of conventional online grocery shopping and EMD services. The social trend of increasing single-person households might have a negative influence on the spread of EMD services, even though consumers of the two services have common socio-demographic factors and lifestyles. Moreover, according to the marginal effects, the influences of the explanatory variables differ considerably depending on the category of EMD users.
Journal: Applied Economics
Pages: 5687-5699
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140118
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140118
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:48:p:5687-5699

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140761_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Anh T. N. Nguyen
Author-X-Name-First: Anh T. N.
Author-X-Name-Last: Nguyen
Title: Applying sample selection methods for panel data to analyse determinants of foreign direct divestment
Abstract: 
 This is the first empirical study to examine determinants of both the probability and the volume of foreign direct divestment (FDD) between countries, applying sample selection methods for panel data. The data cover 137 host countries and 169 source countries, from 2004 to 2012. Empirical evidence shows that market size and GDP growth of both host and source countries, as well as a bilateral investment treaty, discourage divestment. By contrast, sharing a common currency has a positive impact on divestment. Distance negatively affects the divestment amount but does not show any statistically significant impact on the probability of divestment. Neither do political stability, colonial relationship, common language, or common religion play an important role in FDD. This study opens up an area for future research in terms of both theory and empirics since FDD is still a neglected area in international economics.
Journal: Applied Economics
Pages: 5737-5749
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140761
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140761
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:49:p:5737-5749



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140762_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Long Yang
Author-X-Name-First: Long
Author-X-Name-Last: Yang
Author-Name: Haiyang Lu
Author-X-Name-First: Haiyang
Author-X-Name-Last: Lu
Author-Name: Meng Li
Author-X-Name-First: Meng
Author-X-Name-Last: Li
Title: Does mobile broadband use promote smallholder entrepreneurship? Evidence from rural China
Abstract: 
 This study explored the impact of mobile broadband use on smallholders’ entrepreneurial engagement and willingness using data from a household survey collected from three provinces in China. We used an endogenous switching probit model to account for the potential selection bias associated with mobile broadband use. The empirical results indicated that mobile broadband use exerted positive and statistically significant impacts on smallholders’ entrepreneurial engagement and willingness. In particular, we found that mobile broadband use increased the probability of smallholders’ entrepreneurial engagement and willingness by 15.1 and 50.9% points, respectively. Further analysis revealed that the effects of mobile broadband use on smallholder entrepreneurship were heterogeneous across regions. Additionally, we found that while the impact of mobile broadband use on entrepreneurial engagement was the largest for smallholders with high income, its impact on entrepreneurial willingness appeared to be the greatest for smallholders with low income. This study extended the literature by analysing smallholder entrepreneurship and provided evidence on the effect of mobile ICT on smallholder entrepreneurship.
Journal: Applied Economics
Pages: 5750-5767
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140762
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140762
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:49:p:5750-5767



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140764_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Juandan Zhong
Author-X-Name-First: Juandan
Author-X-Name-Last: Zhong
Author-Name: Huaigang Long
Author-X-Name-First: Huaigang
Author-X-Name-Last: Long
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: Jiqian Wang
Author-X-Name-First: Jiqian
Author-X-Name-Last: Wang
Title: International commodity-market tail risk and stock volatility
Abstract: 
 Using the method of, this study constructs a tail risk predictor of the international commodity market to forecast US stock volatility. The in-sample results show that tail risk contains significant interpretive ability for stock volatility. Being of our interest, the tail risk predictor can successfully predict the US stock volatility from both statistical and economic viewpoints. The results of controlling 12 popular macroeconomic variables suggest that tail risk contains incremental information for stock volatility. To further confirm our findings, we examine the forecasting performance of the tail risk predictor for 12 industrial portfolios.
Journal: Applied Economics
Pages: 5790-5799
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140764
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140764
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:49:p:5790-5799



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140767_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lian Cai
Author-X-Name-First: Lian
Author-X-Name-Last: Cai
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Author-Name: Zhenguo Wang
Author-X-Name-First: Zhenguo
Author-X-Name-Last: Wang
Author-Name: Zijian Liu
Author-X-Name-First: Zijian
Author-X-Name-Last: Liu
Title: Does the rise of global value chain position increase or reduce domestic income inequality?
Abstract: 
 Most studies investigate the relationship between global value chain position (GVC position) and income inequality through labour’s wage aspect. And they attribute the increasing domestic income inequality to the rise of the country’s GVC position, which may widen the wage gap between heterogeneous labour. However, wage income distribution is just part of the domestic residents’ income distribution and factor income distribution also matters. In view of this, we add labour share as well as labour’s wage gap into one system, and use united theoretical and empirical analyses to explore the impact of GVC position on domestic income inequality. Research findings show that: (1) The rise of GVC position will reduce domestic income inequality. (2) The channels by which GVC position affects domestic income inequality are labour share and wage gap. Although the rising GVC position will improve domestic income inequality by increasing wage gap, it will decrease domestic income inequality more by increasing labour share. And the overall impact of both effects would reduce domestic income inequality.
Journal: Applied Economics
Pages: 5833-5845
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140767
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140767
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:49:p:5833-5845



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qing Liu
Author-X-Name-First: Qing
Author-X-Name-Last: Liu
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Author-Name: Cong Sui
Author-X-Name-First: Cong
Author-X-Name-Last: Sui
Title: Market volatility, market skewness, and the cross-section of expected returns in Chinese equity markets
Abstract: 
 We examine the impact of upper (lower) market volatility and skewness risks on stock returns. Our results show that market volatility and skewness risks have no significant effect on future stock returns. However, when separately considering call and put options, we find a significantly negative relation between innovations in upper market volatility (skewness) extracted from call options and subsequent stock returns. Moreover, the results remain significant after controlling for other known factors included in the factor models or a battery of firm-level characteristics. Our research shows that call and put options contain different information, and are differently priced in the stock market. This study can help explain the inconsistent results of the recent papers on asset pricing about market volatility and skewness.
Journal: Applied Economics
Pages: 5816-5832
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140766
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140766
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:49:p:5816-5832



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140765_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jing Tan
Author-X-Name-First: Jing
Author-X-Name-Last: Tan
Author-Name: Yaqiao Zhang
Author-X-Name-First: Yaqiao
Author-X-Name-Last: Zhang
Author-Name: Hui Cao
Author-X-Name-First: Hui
Author-X-Name-Last: Cao
Title: The FDI-spawned technological spillover effects on innovation quality of local enterprises: evidence from industrial firms and the patents in China
Abstract: 
 
Foreign direct investment is a topic of crucial importance for emerging market countries for capital accumulation, innovation and sustainable development. From the perspective of technological innovation, the article explores how ‘desirable’ the FDI is in stimulating domestic innovation. Using industrial firm-level data from 1998 to 2013 combined with patent database from China National Intellectual Property Administration and patent citations from Google Patents, the article captures the significant impact of innovation quality of regional FDI on the innovation quality of local firms with both multi-fixed effects and instrumental variable estimations, which are proved to be reliable with robustness checks. Further, under different entry modes, the article finds that M&A FDI plays a more positive role in spillovers compared with greenfield investment. Finally, the article explores the upstream and downstream linkage benefits and intra-industrial benefit from FDI innovation, which shows that the intra-industrial benefit, or the demonstration effect is prominent. Our article renders a more direct micro evidence of FDI spillovers and sheds light on FDI attracting policies.
Journal: Applied Economics
Pages: 5800-5815
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140765
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140765
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:49:p:5800-5815



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140763_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Andrea Bastianin
Author-X-Name-First: Andrea
Author-X-Name-Last: Bastianin
Author-Name: Chiara F. Del Bo
Author-X-Name-First: Chiara F.
Author-X-Name-Last: Del Bo
Author-Name: Massimo Florio
Author-X-Name-First: Massimo
Author-X-Name-Last: Florio
Author-Name: Francesco Giffoni
Author-X-Name-First: Francesco
Author-X-Name-Last: Giffoni
Title: Projecting the socio-economic impact of a big science center: the world’s largest particle accelerator at CERN
Abstract: 
 Public investment in Big Science generates social benefits that can ultimately support economic growth. This paper implements a model for the social Cost – Benefit Analysis (CBA) of Big Science and relies on Monte Carlo methods to quantify the uncertainty of long-term projections. We evaluate social costs and benefits of the High Luminosity upgrade of the Large Hadron Collider (HL-LHC) at CERN up to 2038. Monte Carlo simulations show that there is a 94% chance to observe a positive net present value for society. The attractiveness of CERN for Early Stage Researchers and technological spillovers for collaborating firms are key for a positive CBA result. Cultural effects, especially those related to onsite visitors, also contribute to generating societal benefits.
Journal: Applied Economics
Pages: 5768-5789
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140763
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140763
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:49:p:5768-5789

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hao Nong
Author-X-Name-First: Hao
Author-X-Name-Last: Nong
Author-Name: Xianghua Wu
Author-X-Name-First: Xianghua
Author-X-Name-Last: Wu
Author-Name: Yuanying Jiang
Author-X-Name-First: Yuanying
Author-X-Name-Last: Jiang
Title: A dual perspective inflation analysis of China with large dimensional data: an application of large VARs model
Abstract: 
 The inflation rate was an important indicator for monitoring macroeconomic operations. In this study, we analysed the reasons for the divergence of consumer-side inflation (CPI) and production-side inflation (PPI) trends through large-dimensional data, so as to consider the impact of various macroeconomic factors on the inflation. From the perspective of the diversity of inflation rate formation mechanisms and model fitted performance, we used the large BVAR/large TVP-VAR models for analysis, considered the analysis capability and time-varying adaptability to large dimensional data. In view of the impulse response, we found that the impulse responses of CPI were relatively flat, and the responses of inflation were not exactly the same in both perspectives. The effects of various variables on the inflation in China were highly time-varying. In summary, the macro factors that led to significantly different responses and should be focused on energy prices, chemical prices, food prices, 7-day Inter Bank Offered Rate, narrow measure of money supply and the interaction between PPI and CPI. Accordingly, policymakers could develop more thoughtful and detailed scenarios from our findings. Moreover, the impulse response mechanism of each indicator to the inflation has validated the applicability of large dimensional analysis in macroeconomic studies.
Journal: Applied Economics
Pages: 5939-5955
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140773
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140773
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:50:p:5939-5955



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140771_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Mabruk Billah
Author-X-Name-First: Mabruk
Author-X-Name-Last: Billah
Author-Name: Sanjeev Kumar
Author-X-Name-First: Sanjeev
Author-X-Name-Last: Kumar
Author-Name: Md. Kausar Alam
Author-X-Name-First: Md. Kausar
Author-X-Name-Last: Alam
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Title: Analysis of the frequency dynamics of spillovers and connectedness among Islamic and conventional banks and their determinants: evidence from Gulf Cooperative Council (GCC) markets
Abstract: 
 The study investigates the return spillovers across 20 Islamic and 34 conventional banks among GCC markets (UAE, Saudi Arabia, Bahrain, Qatar, Kuwait) over the period 2005–2022 based on Dieobold and Yilmaz (2014) and Barunik and Krehlik (2018) methods. The outcomes interestingly reveal that the spillover between markets is time-varying, asymmetric, and crisis-sensitive. Moreover, short-oriented spillovers dictate the long-oriented spillovers, while long-oriented spillovers establish the major chunk of the total return spillovers. The results of the DY and BK approach show a weak connectedness between all Islamic banks rather than conventional banks of GCC. Subsample analysis of COVID-19 and GFC strengthens the total and short-oriented spillovers more than long-term spillovers. The global financial stress is exposed with the most substantial coherence, increasing the connectedness of Islamic banks in the short and long-oriented markets compared to conventional banks. The results of the study have practical implications for bankers, central banks, Islamic banks, policymakers, international economic institutions, banking investors, FIIs, DIIs, and academia. Additionally, the current findings can be guiding forces for many investors across the world to take their portfolio decision by leveraging Islamic banks’ securities.
Journal: Applied Economics
Pages: 5895-5924
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140771
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140771
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:50:p:5895-5924



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140769_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongdong Ma
Author-X-Name-First: Hongdong
Author-X-Name-Last: Ma
Author-Name: Gang Li
Author-X-Name-First: Gang
Author-X-Name-Last: Li
Author-Name: Rongyue Liu
Author-X-Name-First: Rongyue
Author-X-Name-Last: Liu
Author-Name: Kexin Zhang
Author-X-Name-First: Kexin
Author-X-Name-Last: Zhang
Author-Name: Zijian Wang
Author-X-Name-First: Zijian
Author-X-Name-Last: Wang
Title: Research on credit scoring method matching the probability of default: evidence from Lending Club
Abstract: 
 In the credit loan practices of lending platforms, there is a mismatch problem between borrowers’ credit scoring and the probability of default (PD), which cannot provide a basis for the credit loan decision. Firstly, the Wald test is used to select the single indicator with a strong default identification ability, and Lasso-Logistic regression is used to determine the optimal combination of indicators with the overall default identification ability to construct the credit scoring indicator system. Secondly, by randomly dividing non-default samples, this article forms multiple groups of balanced samples with default samples to perform Lasso-Logistic regression, and multiple groups of Lasso-Logistic regression coefficients and expert opinion are used to determine the optimal indicator weight and calculate the credit score. The empirical work is developed through 43,471 and 24,153 samples of Lending Club. The results show that the proposed credit scoring method is effective. The credit scoring method proposed in this paper solves the mismatch problem between credit scoring and PD in credit loan decision-making practice. The findings of this paper provide references for assisting credit loan decision-making, reducing bankers’ investment risks, and alleviating borrowers’ financing problems.
Journal: Applied Economics
Pages: 5864-5877
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140769
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140769
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:50:p:5864-5877



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140776_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chu Lin
Author-X-Name-First: Chu
Author-X-Name-Last: Lin
Author-Name: Wei Sun
Author-X-Name-First: Wei
Author-X-Name-Last: Sun
Title: Central environmental protection inspection, environmental quality, and economic growth: evidence from China
Abstract: 
 How to enhance local governments’ enforcement of environmental regulations in developing countries? Whether central inspection can properly motivate local governments to implement environmental regulations, and how would it affect economic growth? This paper examines the effectiveness of China’s Central Environmental Protection Inspection (CEPI) program, which aimed to promote local governments’ enforcement of environmental regulations through central inspection. Using a difference-in-differences approach, we find that the CEPI program caused a significant reduction in air pollution and economic growth, indicating that the CEPI program introduced a substantial trade-off between environmental quality and economic growth. Further analysis shows that the effect of this program on air quality and economic growth is temporary. Moreover, we find that the effect is more significant when the local officials with higher promotion potential. Further cost-benefit analysis suggests that the cost of the CEPI program far exceeds its benefit.
Journal: Applied Economics
Pages: 5956-5974
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140776
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140776
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:50:p:5956-5974



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140770_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rami Zeitun
Author-X-Name-First: Rami
Author-X-Name-Last: Zeitun
Author-Name: Mohamed Goaied
Author-X-Name-First: Mohamed
Author-X-Name-Last: Goaied
Title: Corporate governance and capital structure: dynamic panel threshold analysis
Abstract: 
 This paper examines the nonlinear connection between corporate governance (CG) and corporate leverage. Our study applied the dynamic panel threshold model (DPTM) to facilitate the capture of the nonlinear effect of CG on a firm’s leverage for Japanese listed companies. Additionally, our study sought to demonstrate the linkage between CG and the speed of adjustment (SOA), particularly following the reforms in Japan’s CG system, to reach a targeted level of leverage. The empirical findings confirm the presence of the threshold influence of managerial ownership and board size, thus confirming their nonlinear impact on capital structure. Moreover, at a low level of managerial ownership, the SOA for firms to achieve the optimal level of leverage is faster than it is for firms with a high level of managerial ownership (MO), while firms with a larger board achieve their targeted level of leverage quicker than firms with a smaller board. Our findings indicate that recent reforms in Japan’s CG system seem to have been inefficient, with no positive effect on corporate leverage.
Journal: Applied Economics
Pages: 5878-5894
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140770
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140770
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:50:p:5878-5894



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140768_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yunsheng Zhang
Author-X-Name-First: Yunsheng
Author-X-Name-Last: Zhang
Author-Name: Ruomeng Zhou
Author-X-Name-First: Ruomeng
Author-X-Name-Last: Zhou
Author-Name: Nanxu Chen
Author-X-Name-First: Nanxu
Author-X-Name-Last: Chen
Title: Identification and correction of ratchet effect of residential land price: empirical study on urban agglomeration in China
Abstract: 
 This paper theoretically analyses the mechanism of the ratchet effect of land finance and adaptive expectations on residential land prices and discuss the distort factors and spatial characteristics of residential land price in the Yangtze River Delta urban agglomeration (YRDUA) from 2008 to 2018. It is found that:(1) Land finance and adaptive expectations significantly drive the long-term growth of residential land prices and maintain the ratchet effect under the interaction. (2) There are significant spatial spillover benefits of residential land prices, and land finance and adaptive expectations not only drive the increase of local residential land prices but also have significant positive benefits on residential land prices in neighbouring areas. (3) Land price distortion is significant in municipalities directly under the central government and provincial capitals. However, residential land prices in cities farther away from large cities are lower than their reasonable values, and the distortion correction coefficient shows a spatially graded distribution spreading from large cities to the periphery. Land finance and adaptive expectations do not make residential land prices in all cities higher than their reasonable values. The above findings have some theoretical and policy implications for optimizing land administration.
Journal: Applied Economics
Pages: 5847-5863
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140768
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140768
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:50:p:5847-5863



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140772_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yongyi Zhu
Author-X-Name-First: Yongyi
Author-X-Name-Last: Zhu
Author-Name: Di Yu
Author-X-Name-First: Di
Author-X-Name-Last: Yu
Title: Education and happiness: does education expenditure undermine households’ subjective well-being? Evidence from China
Abstract: 
 Education expenditure accounts for a rising proportion of household income and gradually becomes a burden on households. Few studies have analysed whether the household’s subjective well-being (SWB) decreases under these conditions. To fill the gap, we explore the nexus between education expenditure and the SWB of households, using China Household Finance Survey data. The results confirm that education expenditure significantly attenuates the SWB of Chinese households. Moreover, empirical results suggest that the ‘arms race’ in education investment, the crowding out effect on other household consumption, and the synergy effect on family liabilities are three channels for education expenditure’s adverse effects on SWB. Further analysis shows that this expenditure’s detrimental impacts are more significant in provinces with high Gaokao pressure and the middle-income class, indicating that Gaokao pressure is the main driving force for the education arms race in China and that middle-class families are the most likely to be involved and be injured in the education arms race. Our findings confirm that the ‘double reduction’ regulation is necessary, and relevant policies require improvement to promote equality in education and achieve higher life satisfaction for people across China.
Journal: Applied Economics
Pages: 5925-5938
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140772
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140772
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:50:p:5925-5938

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bing Ye
Author-X-Name-First: Bing
Author-X-Name-Last: Ye
Author-Name: Qianwen Cao
Author-X-Name-First: Qianwen
Author-X-Name-Last: Cao
Title: Environmental regulation and development of the tertiary industry
Abstract: 
 Environmental regulation has become an important policy practice in many countries, and it has an effect on economic development. Previous literature has focused on the effect of environmental regulation on the development of the aggregate economy or the secondary industry while ignoring its effect on the development of the tertiary industry. Accordingly, we systemically identify for the first time the causal effect of environmental regulation on the development of the tertiary industry. Exploiting the great exogenous variation in regulatory intensity generated by China’s 2013 Air Pollution Prevention and Control Action Plan, we apply the difference-in-difference method to China’s province-sector panel data from 2009 to 2017. The results suggest that environmental regulation reduces the fixed asset investment and value-added of tertiary sectors but increases the establishment of legal entities in tertiary sectors. Thus, environmental regulation does lead some production resources flowing to local tertiary sectors. However, this flow fails to reverse the decline in the investment and production of local tertiary sectors. Environmental regulation affects the development of the tertiary industry through industrial linkages between the secondary and tertiary industries, the flow of production resources from the secondary to the local tertiary industry, and the local governments’ taxation and spending behaviour.
Journal: Applied Economics
Pages: 6025-6041
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141447
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141447
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:51:p:6025-6041



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Author-Name: Mingquan Zhou
Author-X-Name-First: Mingquan
Author-X-Name-Last: Zhou
Title: The estimation of house bubbles during the time of pandemic: a study of Australia
Abstract: 
 While the economy slid into a recession since the onset of the COVID-19 pandemic, the house prices in many markets have reached historical highs. This research aims to examine how much the recent large increases in the prices can be explained by bubbles and whether the overvaluation is due to momentum or intrinsic bubbles. A present value model is constructed to estimate real estate bubbles with one dynamic and three assumed net rental yields. The empirical focus is on Sydney, Melbourne and Brisbane, the three largest residential property markets in Australia, that have experienced a rapid growth in house prices since the outbreak of coronavirus. The finding demonstrates the evidence of bubbles in all three markets during the study period but the degree of overvaluation varies. We also discover that momentum bubbles exist in these markets but the overvaluation is mainly explained by intrinsic bubbles.
Journal: Applied Economics
Pages: 6076-6089
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141452
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141452
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:51:p:6076-6089



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141448_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rewat Khanthaporn
Author-X-Name-First: Rewat
Author-X-Name-Last: Khanthaporn
Author-Name: Nuttanan Wichitaksorn
Author-X-Name-First: Nuttanan
Author-X-Name-Last: Wichitaksorn
Title: Modelling and forecasting COVID-19 stock returns using asymmetric GARCH-ICAPM with mixture and heavy-tailed distributions
Abstract: 
 COVID-19 pandemic is an extreme event that created turmoil in stock markets around the world. This unexpected circumstance poses a critical question of whether the prevailing models can help predict the plummets of indices, hence the returns. In this study, we aim to analyse and forecast the daily stock returns using various generalized autoregressive conditional heteroscedastic (GARCH) models with intertemporal capital asset pricing structure and innovation following (1) a mixture of generalized Pareto and Gaussian distributions and (2) generalized error distribution that can capture extreme events. We also employ the parallel griddy Gibbs (GG) sampling, which is a Markov chain Monte Carlo method, to facilitate parameter estimation. Our simulation study shows that the GG estimation method outperforms the benchmark quasi-maximum likelihood estimation method. We then proceed to the empirical study of seven stock markets where the results from the in-sample period before the COVID-19 pandemic justify the use of the proposed GARCH models. The out-of-sample forecasts during the early COVID-19 period also show satisfactory results.
Journal: Applied Economics
Pages: 6042-6061
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141448
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141448
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:51:p:6042-6061



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141444_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mariana Saenz
Author-X-Name-First: Mariana
Author-X-Name-Last: Saenz
Author-Name: Joshua J. Lewer
Author-X-Name-First: Joshua J.
Author-X-Name-Last: Lewer
Title: Estimates of Trade Based Money Laundering within the European Union
Abstract: 
 This paper applies a Multiple Indicators Multiple Causes Model to benchmark trade-based money laundering (TBML) activity for 26 European Union member countries between 2005 and 2015. Results indicate substantial TBML levels in the region averaging between $0.9 to $1.8 trillion USD annually. Surprisingly, we also find that TBML is a complement to traditional money laundering activities. Policies focusing on deterring traditional money laundering and tax evasion are associated with reduced TBML activity in the region. Aggressive government attitude towards traditional money laundering and illicit drug trade, without effectively reducing the illicit proceeds, can deter the detection of money laundering and increase TBML.
Journal: Applied Economics
Pages: 5991-6003
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141444
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141444
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:51:p:5991-6003



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141450_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Moritz Wagner
Author-X-Name-First: Moritz
Author-X-Name-Last: Wagner
Author-Name: Xiaopeng Wei
Author-X-Name-First: Xiaopeng
Author-X-Name-Last: Wei
Title: Ex-dividend day price and volume: the case of cum-ex trading
Abstract: 
 In this paper, we analyse the extent of cum-ex trading in European markets. We document that the abnormal trading activity around the dividend day of a stock can be attributed to cum-ex trading, in addition to existing tax clientele hypotheses. Cum-ex trading is positively associated with dividend yield, which is consistent with maximizing returns from this strategy. Based on abnormal trading volume, we estimate a substantial loss to treasuries due to illicit tax refunds of withholding tax on dividends. Our results are robust, controlling for confounding effects and investors’ tax preference and heterogeneity.
Journal: Applied Economics
Pages: 6062-6075
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141450
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141450
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:51:p:6062-6075



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2140777_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: José Simão Filho
Author-X-Name-First: José Simão
Author-X-Name-Last: Filho
Author-Name: Elder Tiago C. de Souza
Author-X-Name-First: Elder Tiago C.
Author-X-Name-Last: de Souza
Title: Can central bank credibility promote a substitution effect in the monetary transmission mechanism?
Abstract: 
 We analysed whether the credibility of the Central Bank of Brazil (CBB) influences the substitution effect between the interest channel and the inflation expectations channel. Specifically, based on a DSGE model, we investigate the effects of central bank credibility on key domestic macroeconomic variables. The results show that higher central bank credibility reduces the harmful effect of fighting inflation on domestic macroeconomic variables.
Journal: Applied Economics
Pages: 5975-5990
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2140777
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140777
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:51:p:5975-5990



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141445_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christophe J. Godlewski
Author-X-Name-First: Christophe J.
Author-X-Name-Last: Godlewski
Title: Private debt renegotiation, corporate policies, and performance: empirical evidence from Europe
Abstract: 
 We investigate the effects of private debt renegotiation on a firm’s performance and financial and investment policies. We employ endogenous switching regressions using a large cross-country sample of loans issued and amended over a long-term in Europe. We find that bank loan renegotiation has an economically significant and causal impact on financial policy and performance. Renegotiation offers firm added degrees of freedom and unlocks its economic potential, implying significant effects of the firm’s tangibility, growth, opportunities, and cash on financial policy and performance. Bank loan renegotiation also shows a certification and signalling effect, which can increase the effect of amendments to the credit agreement on a firm’s financial policy.
Journal: Applied Economics
Pages: 6004-6024
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141445
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141445
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:51:p:6004-6024

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Stefano Cabras
Author-X-Name-First: Stefano
Author-X-Name-Last: Cabras
Author-Name: Marco Delogu
Author-X-Name-First: Marco
Author-X-Name-Last: Delogu
Author-Name: J.D. Tena
Author-X-Name-First: J.D.
Author-X-Name-Last: Tena
Title: Forced to play too many matches? A deep-learning assessment of crowded schedule
Abstract: 
 Do important upcoming or recent scheduled tasks affect the current productivity of working teams? How is the impact (if any) modified according to team size or by external conditions faced by workers? We study this issue using association football data where team performance is clearly defined and publicly observed before and after completing different activities (football matches). UEFA Champions League (CL) games affect European domestic league matches in a quasi-random fashion. We estimate this effect using a deep learning model. This approach is instrumental in estimating performance under ‘what if’ situations required in a causal analysis. We find that dispersion of attention and effort to different tournaments significantly worsens domestic performance before/after playing the CL match. However, the size of the impact is higher in the latter case. Our results suggest that this distortion is higher for small teams and that, compared to home teams, away teams react more conservatively by increasing their probability of drawing.
Journal: Applied Economics
Pages: 6187-6204
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141462
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141462
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:52:p:6187-6204



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2209355_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shiyu Jiang
Author-X-Name-First: Shiyu
Author-X-Name-Last: Jiang
Title: Task supply, wage earning, and segmentation among natives and two generations of immigrants in Canada
Abstract: 
 The different life paths of the generation following immigration have become a matter of public discussion and scholarly research in the past decades in many migrant-receiving countries. These differences would be key points for the immigration decision made by first-generation immigrants. This paper adopts a new perspective to study the differences in task supplies and economic status between natives and two generations of immigrants to see their different life paths. This paper estimates differences in task supply and earnings between natives and immigrants in 1970 and 2015, which are the beginning and end of the fifth (and current) wave of immigration to Canada. Furthermore, using a three-fold Blinder-Oaxaca decomposition, I link the average weekly wage of workers to their task productivity, and try to find the effects of the returns to tasks as well as different task supplies on the average wage gap between natives and immigrants. Finally, I use ordered probit and logit models to demonstrate and measure the significant effects of immigrant status on an employee’s labour market segment.
Journal: Applied Economics
Pages: 6205-6221
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2023.2209355
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2209355
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:52:p:6205-6221



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Aakanksha Shrawan
Author-X-Name-First: Aakanksha
Author-X-Name-Last: Shrawan
Author-Name: Amlendu Dubey
Author-X-Name-First: Amlendu
Author-X-Name-Last: Dubey
Title: Dynamics of structural transformation and business cycle synchronization: a panel quantile regression approach for India
Abstract: 
 Recent contributions to the business cycle literature point towards the presence of potential nonlinearities in the relationship between similarities in sectoral composition of countries and their bilateral business cycle synchronization. By using a dynamic indicator of structural change (as opposed to the traditional static indicators), this article attempts to identify whether the similarities in the evolution of structural change across countries influence their bilateral business cycle synchronization heterogeneously across quantiles. With focus on India and its advanced and developing trade partners, this article employs the quantile regression model with non-additive fixed effects to assess this relationship. While India and its advanced countries' trade partners display a homogeneous and positive relationship between the similarity in evolution of agriculture and industry and their bilateral business cycle synchronization, there exists a homogeneously negative relationship with respect to the service sector. Similarities in the evolution of the industry and the service sector between India and its developing trade partners, on the other hand, have a heterogeneous impact on their bilateral business cycle synchronization.
Journal: Applied Economics
Pages: 6170-6186
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141461
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141461
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:52:p:6170-6186



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pietro De Ponti
Author-X-Name-First: Pietro
Author-X-Name-Last: De Ponti
Author-Name: Valeria Gattai
Author-X-Name-First: Valeria
Author-X-Name-Last: Gattai
Title: Family firms, productivity and input specificity: An empirical assessment of Italian firms’ sourcing
Abstract: 
 This paper provides an empirical assessment of Italian firms’ sourcing. Combining the international economics literature on global sourcing with the family business and international business literature on family firms (FFs)’ internationalization, we build a comprehensive framework in which sourcing is shaped by location (domestic versus foreign sourcing) and ownership (integration versus outsourcing) decisions. Relying on a new firm-level, cross-sectional dataset on a stratified sample of Italian manufacturing firms, we address the relationship between sourcing and various firm-level features. Our probit and multinomial probit estimates highlight family presence in ownership and control, total factor productivity and reliance on specific inputs as the main drivers of sourcing. While playing little role in shaping the ownership decision, both FF status and total factor productivity affect location choices, fostering domestic and foreign sourcing, respectively. Conversely, reliance on specific inputs is key in orienting the ownership decision, promoting integration over outsourcing. Our study contributes to the international economics literature on global sourcing by studying factors other than productivity and input specificity that affect input procurement; moreover, it contributes to the family business and international business literature on FFs’ internationalization by taking a supply-side perspective and investigating sourcing through the interplay between location and ownership choices.
Journal: Applied Economics
Pages: 6133-6148
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141458
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141458
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:52:p:6133-6148



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammad Usman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Usman
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Dang Khoa Tran
Author-X-Name-First: Dang Khoa
Author-X-Name-Last: Tran
Title: Spillovers from stock markets to currency markets: Evidence from Copula-CoVar with time-varying higher moments
Abstract: 
 This study analyses the relationship between equites and foreign exchange markets by employing a conditional value at risk (CoVaR) framework for developed and developing economies accounting for an upside or downside shock, greater or equal to their VaRs. The CoVaR of currency returns conditional on both, the local equity and SP500 index are significant and greater than their unconditional VaRs for most currencies. The ∆CoVaRs for currency market conditional on the local stock index are greater than those conditional on the SP500, showing that local stock index provides greater contributions to the shocks in currency returns compared to the SP500 index. Our findings have important implications for developing cross-market and cross-border hedging strategies.
Journal: Applied Economics
Pages: 6091-6114
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141455
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141455
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:52:p:6091-6114



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ling Li
Author-X-Name-First: Ling
Author-X-Name-Last: Li
Author-Name: Xueli Zhang
Author-X-Name-First: Xueli
Author-X-Name-Last: Zhang
Author-Name: Yuan Chen
Author-X-Name-First: Yuan
Author-X-Name-Last: Chen
Author-Name: Bingsheng Liu
Author-X-Name-First: Bingsheng
Author-X-Name-Last: Liu
Author-Name: Guobin Wu
Author-X-Name-First: Guobin
Author-X-Name-Last: Wu
Title: Investigating influencing factors of regional healthcare efficiency: a case study of China
Abstract: 
 Healthcare as a kind of service is closely related to human health, but its uneven distribution among regions could affect the equity of residents’ access to the service and lead to the unbalanced development of healthcare levels. Therefore, this article establishes an integrated model by means of the stochastic frontier analysis method to evaluate regional healthcare efficiency and analyse its influencing factors. Specifically, the distribution and change trend of healthcare technical output (TO) efficiency and health output (HO) efficiency are investigated from the temporal and spatial perspectives, and then the influencing factors of the two types of healthcare efficiency are explored, respectively. Taking China as a case study, the results show that there are obvious regional differences in TO efficiency as a whole, where the values of the eastern and central regions are significantly higher, while the western and northeast regions have lower TO efficiency. Economic, social, and regional factors have a significant influence on both TO efficiency and HO efficiency, among which the impacts of population density on the two types of efficiency are opposite. Accordingly, some policy recommendations have been put forward for improving regional healthcare efficiency.
Journal: Applied Economics
Pages: 6115-6132
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141457
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141457
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:52:p:6115-6132



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: James E. Payne
Author-X-Name-First: James E.
Author-X-Name-Last: Payne
Author-Name: Saban Nazlioglu
Author-X-Name-First: Saban
Author-X-Name-Last: Nazlioglu
Author-Name: Andrea Mervar
Author-X-Name-First: Andrea
Author-X-Name-Last: Mervar
Title: Regional tourism convergence: a disaggregated analysis of Croatia
Abstract: 
 This study examines tourism convergence across regions within a country as a means to understand the extent to which there is segmentation of regional tourism markets and the differential impact of domestic versus foreign tourism. Additionally, our empirical analysis introduces a newly developed weak σ-convergence test alongside the club convergence approach to explore regional tourism convergence. Using disaggregated monthly county-level data for Croatia from 1998:1 to 2021:9, the results clearly identify the divergence across counties to suggest the regional segmentation of tourism in the country between coastal and continental regions. The policy implications of the results are also discussed.
Journal: Applied Economics
Pages: 6149-6169
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141460
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141460
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:52:p:6149-6169

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141464_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ángela Castillo-Murciego
Author-X-Name-First: Ángela
Author-X-Name-Last: Castillo-Murciego
Author-Name: Julio López-Laborda
Author-X-Name-First: Julio
Author-X-Name-Last: López-Laborda
Title: Tax haven investments for Profit-Shifting: evidence from Spanish multinationals
Abstract: 
 Tax havens may play a key role in the Profit-Shifting (P-S) activity of Multinational Companies (MNCs), since, among other characteristics, they are the territories with the most beneficial taxes for foreign investors. This article shows that Spanish MNCs facing higher tax rates in non-tax havens, and therefore those that stand to gain the most from P-S, are more likely to invest in tax havens. This outcome is robust to at least two different tax haven lists and various definitions of the non-haven tax rate. The size of the MNCs’ activity, their use of intangible assets, and belonging to the Ibex 35 stock index also positively affect the probability of investing in tax havens. By economic sectors, once the endogeneity problem is controlled for, the incentive is greater for manufacturing than for service firms, but it is especially high for financial firms. Additionally, while non-haven tax rates positively influence the number of different tax havens used by firms, they have no effect on the number of affiliates located within them. Finally, the article estimates that Spanish MNCs have been able to save about 4 billion euros per year in Corporate Income Tax in the period 2013–2018 as a result of P-S.
Journal: Applied Economics
Pages: 6250-6263
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141464
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141464
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:53:p:6250-6263



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2142191_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Akihiro Kubo
Author-X-Name-First: Akihiro
Author-X-Name-Last: Kubo
Title: Which inflation targeters respond to exchange rate movements? Evidence from emerging market economies
Abstract: 
 There is a significant difference between de facto and de jure regimes in terms of exchange rates, especially in emerging market economies. A simple open economy model is used to test the empirical plausibility of a managed exchange rate system in which the monetary authority responds to exchange rate movements with foreign exchange intervention as an additional goal of monetary policy. This study demonstrates that this system fits the data better than a float-system specification. In addition, it is found that the authorities in Asian countries are more likely to intervene in the foreign exchange market with a higher degree of concern regarding exchange rate movements. The study empirically confirms that all emerging market inflation targeters have employed a de facto managed exchange rate system while adopting a de jure float system.
Journal: Applied Economics
Pages: 6264-6276
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2142191
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2142191
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:53:p:6264-6276



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2153790_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Livia De Giovanni
Author-X-Name-First: Livia
Author-X-Name-Last: De Giovanni
Author-Name: Pierpaolo D’Urso
Author-X-Name-First: Pierpaolo
Author-X-Name-Last: D’Urso
Author-Name: Nadia Fiorino
Author-X-Name-First: Nadia
Author-X-Name-Last: Fiorino
Author-Name: Emma Galli
Author-X-Name-First: Emma
Author-X-Name-Last: Galli
Author-Name: Giampaolo Garzarelli
Author-X-Name-First: Giampaolo
Author-X-Name-Last: Garzarelli
Author-Name: Antonio Pacifico
Author-X-Name-First: Antonio
Author-X-Name-Last: Pacifico
Title: The local press as an external public governance power
Abstract: 
 
Do national and local newspapers both impact voter turnout? This paper tackles this question by employing data from a unique dataset that collects detailed national and local newspapers, politico-institutional and socio-economic information for Italy during 1980–2007. We use a Dynamic Panel Data with Instrumental Variables methodology that allows for the consideration of potential sources of endogeneity that may affect the relation between the press and voting behavior. We strengthen this methodology by considering the industry’s entry and exit of newspapers – i.e. turbulence – as an external shock. Our analysis provides robust evidence that local newspaper readership affects both national and local turnout and improves political accountability.
Journal: Applied Economics
Pages: 6327-6344
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2153790
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2153790
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:53:p:6327-6344



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2141463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Title: Heterogeneity, aggregation and long memory in lottery sales: some empirical evidence for Brazil
Abstract: 
 The paper investigates the prevalence of long memory for lottery sales, as previous literature suggests that aggregation of heterogeneous agents can potentially lead to a fractional differencing parameter consistent with highly persistent processes. Applications are considered for sales of 7 different lottery modalities in Brazil and also disaggregated at the level of federative units. The selected estimated models considered controls in terms of dummy variables for prize rollovers, special draws and weekends´ draws. The effects of rollovers and special draws on lottery sales are typically positive and non-negligible with an exception for the latter variable. The effect of draws that take place at weekends are mixed and not always positive. One observes long memory, for Brazil as a whole, only in the case of one modality. The evidence by federative units is mixed and indicates contrasts that suggest heterogeneities across regions and lottery modalities. At a more exploratory level, the evidence obtained with a stacked sample suggests relevant effects accruing from income inequality. on the probability of prevalence of highly persistent lottery sales, taking into account controls for regional heterogeneities. The initial evidence suggests that positional concerns may be relevant in the case of Brazil.
Journal: Applied Economics
Pages: 6223-6249
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141463
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141463
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:53:p:6223-6249



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2142192_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jens Agerström
Author-X-Name-First: Jens
Author-X-Name-Last: Agerström
Author-Name: Magnus Carlsson
Author-X-Name-First: Magnus
Author-X-Name-Last: Carlsson
Author-Name: Asuman Erenel
Author-X-Name-First: Asuman
Author-X-Name-Last: Erenel
Title: The effect of social gender norms on parental leave uptake intentions: evidence from two survey experiments on prospective fathers and mothers
Abstract: 
 We investigate how social gender norms influence parental leave uptake intentions by conducting two separate survey experiments on prospective fathers (N = 877) and mothers (N = 882) in the UK. In a between-subjects design, we manipulate social gender norms by varying information on the average number of days that other fathers and mothers stay at home to take care of a child during the first year after childbirth. We find that when prospective parents (both genders) are exposed to the low staying-home-with-children norm, they plan less parental leave uptake compared to the control (no norm) group. When exposed to the high staying-home-with-children norm, men (but not women) plan more parental leave uptake compared to the control group. We discuss policy implications and suggest directions for future studies.
Journal: Applied Economics
Pages: 6277-6293
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2142192
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2142192
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:53:p:6277-6293



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2142193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wen Yue
Author-X-Name-First: Wen
Author-X-Name-Last: Yue
Title: Export product quality and markup of firms: evidence from China
Abstract: 
 In this study, we analyse how export product quality affects the markup of firms. First, on the basis of the heterogeneous firm trade model, we clarify the internal mechanism of the effect of export product quality on the markup of firms through the channels of firm marginal production cost and product pricing. Second, using the micro data of Chinese firms from 2000 to 2007 and by estimating firm-level markup and export product quality, we construct a dynamic panel model to empirically analyze the impact of export product quality on the markup of the Chinese firms and mechanism of the impact. Results of the empirical analysis support the prediction of the theoretical model, that is, improvement of export product quality will positively affect the markup of firms by increasing their marginal cost of production and product pricing. From the product quality perspective, we provide new insights for understanding the impact of the export market on the markup of firms.
Journal: Applied Economics
Pages: 6294-6309
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2142193
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2142193
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:53:p:6294-6309



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2145011_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Uzma Bibi
Author-X-Name-First: Uzma
Author-X-Name-Last: Bibi
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Title: Trade-offs in South Asian MFIs: regulation and governance structure
Abstract: 
 This paper evaluates trade-offs and investigates the key performance determinants in different types of 468 South Asian Microfinance Institutions (MFIs) for the period 1998–2019. Three indicators of financial performance are compared against multiple dimensions of breadth and depth of outreach to evaluate the trade-off between financial and social performance of MFIs. To clarify the direction of trade-off, we run Granger-Causality tests and accordingly, we regress financial performance measures on each suggested indicator of breadth and depth of outreach . Simultaneously, we also investigate the financial performance in relation to mainly different regulatory structure and profit orientation of types of MFIs by controlling for financial ratios, country and institutional control variables. The regression results show that there is no significant trade-off between the financial and social objectives in almost all specifications rather we have significant evidence for compatibility of dual objectives both in terms of breadth and depth of outreach in some specifications. We also find capital to assets ratio and experience to be prominently positively responsible for financial sustainability while risky and costly loans and being regulated MFIs reducing the financial performance of South Asian MFIs while profit orientation does not matter once we have controlled for regulatory structure.
Journal: Applied Economics
Pages: 6310-6326
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2145011
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2145011
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:53:p:6310-6326

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2156473_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaofang Li
Author-X-Name-First: Xiaofang
Author-X-Name-Last: Li
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Kefu Yi
Author-X-Name-First: Kefu
Author-X-Name-Last: Yi
Author-Name: Ming Men
Author-X-Name-First: Ming
Author-X-Name-Last: Men
Title: Salience in beta anomaly
Abstract: 
 
This article shows that the beta anomaly in the capital asset pricing model arises when investors’ attention is drawn to salient payoffs owing to limited attention. Controlling for the salience effect renders the alphas of beta-sorted portfolios and betting-against-beta insignificant. Empirically, we find that stocks’ market beta is strongly related to salience measure, indicating that salience-demand price pressure falls predominantly on high-beta stocks. Furthermore, the low-beta anomaly occurs mainly during periods when the correlation between stocks’ salience and beta is high, indicating that the disproportionate salience-demand price pressure on high-beta stocks is an important driver of the beta anomaly.
Journal: Applied Economics
Pages: 6479-6503
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156473
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156473
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:55:p:6479-6503



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2159010_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sergio Destefanis
Author-X-Name-First: Sergio
Author-X-Name-Last: Destefanis
Author-Name: Matteo Fragetta
Author-X-Name-First: Matteo
Author-X-Name-Last: Fragetta
Author-Name: Nazzareno Ruggiero
Author-X-Name-First: Nazzareno
Author-X-Name-Last: Ruggiero
Title: Active and passive labour-market policies: the outlook from the Beveridge curve
Abstract: 
 Following a panel ARDL approach, we appraise the impact of various indicators of active and passive labour-market policies within the framework of the Beveridge curve across fourteen OECD countries from 1985 to 2013, controlling for other factors, both institutional (tax wedge) and structural (technological progress, globalization). We embed the role of these variables within the specification of the Beveridge curve, finding that the generosity of unemployment benefits has a detrimental impact on labour-market matching, with the duration of benefits and the strictness of the rules pertaining to the deployment of benefits taking a key role in driving this result. Among active labour-market policies, employment incentives and especially training have a favourable effect on matching. There is evidence of a virtuous interaction between active and passive policies. A significantly detrimental role emerges for the tax wedge. These results are consistent across various specifications, and structural relationships are stable throughout the 2008–2013 period.
Journal: Applied Economics
Pages: 6538-6550
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159010
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159010
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:55:p:6538-6550



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2159012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Puneet Vatsa
Author-X-Name-First: Puneet
Author-X-Name-Last: Vatsa
Author-Name: Enoch Owusu-Sekyere
Author-X-Name-First: Enoch
Author-X-Name-Last: Owusu-Sekyere
Author-Name: Xiaoshi Zhou
Author-X-Name-First: Xiaoshi
Author-X-Name-Last: Zhou
Author-Name: Victor Owusu
Author-X-Name-First: Victor
Author-X-Name-Last: Owusu
Title: Does income diversity really stimulate household consumption expenditure diversity? Evidence from mean-based and unconditional quantile regressions
Abstract: 
 Although both income diversity and household consumption expenditure diversity are positively correlated with income, little is known about how the former affects the latter. This study investigates how and to what extent income diversity stimulates household consumption expenditure diversity, utilizing data collected by the China Social Survey. We estimate a standard mean-based linear regression model and an unconditional quantile regression (UQR) model to explore mean-based and quantile-specific effects, respectively. The results of the linear regression show that income diversity significantly increases household consumption expenditure diversity. The UQR estimates provide more granular insights, revealing that income diversity improves consumption expenditure diversity at the lower quantiles (5th and 25th), with the largest effect occurring at the lowest 5th quantile; for the higher quantiles, income diversity has no effect on consumption expenditure diversity. Our findings highlight that policies aimed at improving consumption expenditure diversity and the quality of life of people in China should create an economic environment that allows people to diversify their income sources. From a methodological standpoint, we show that mean-based approaches may overlook the finer details of the linkages between income and consumption and thus should be applied cautiously.
Journal: Applied Economics
Pages: 6567-6581
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159012
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159012
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:55:p:6567-6581



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2156472_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaodong Zheng
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Zheng
Author-Name: Jingru Ren
Author-X-Name-First: Jingru
Author-X-Name-Last: Ren
Author-Name: Dian Chen
Author-X-Name-First: Dian
Author-X-Name-Last: Chen
Author-Name: Xiangming Fang
Author-X-Name-First: Xiangming
Author-X-Name-Last: Fang
Title: School feeding and children’s noncognitive skills: Evidence from the Nutrition Improvement Program in rural China
Abstract: 
 
The health and education consequences of school feeding programs have been well established, however, evidence regarding such programs’ spillover effects on children’s noncognitive skills remains scarce. Using the China Education Panel Survey (CEPS), this study examines the association between the Nutrition Improvement Program (NIP), which provides free school meals to eligible rural students, and children’s Big Five noncognitive skills. The results show that the school feeding program significantly improves children’s noncognitive outcomes, especially among students who are girls, left behind by parents, non-only-child, have a local hukou, live in low-income households, and have low levels of positive personality traits. Our main findings are robust to a battery of specifications and validity tests. In addition, we further explore the possible mechanisms and find that child health, cognitive skills, peer relationship, family economic status, and parenting behaviours are the potential channels through which participating in the school feeding program positively affects children’s noncognitive development. Our findings suggest that school feeding should not only be treated as a nutrition or education scheme, but also as a transfer program that fosters children’s development beyond health and academic outcomes.
Journal: Applied Economics
Pages: 6459-6478
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156472
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156472
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:55:p:6459-6478



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2159008_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Elisabetta Ottoz
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Ottoz
Author-Name: Piermassimo Pavese
Author-X-Name-First: Piermassimo
Author-X-Name-Last: Pavese
Author-Name: Lisa Sella
Author-X-Name-First: Lisa
Author-X-Name-Last: Sella
Title: The effect of Movida on residential property prices: up or down?
Abstract: 
 Hedonic regression technique has often been used to study the effect of road, railway and airport noise on property prices. However, European cities are experiencing a particular type of noise pollution originated by night-time recreational activities mainly located in the city centres, the so-called ‘Movida’, which has not been properly investigated yet. The aim of this paper is to examine the effect of recreational noise on residential property prices. We used an original highly detailed housing transactions dataset from the City of Turin covering the period 2017 to 2018 and built an indicator of recreational noise based on the proximity of dwellings to the night recreational activities. The results obtained employing hedonic modelling show that the adverse environment for an apartment located in a ‘Movida’ district will result in a lower market value as compared to an apartment with similar characteristics, except for recreational noise. This occurs because potential buyers reduce their demand, as they discount the present value of the costs of annoyance, loss of tranquillity and health effects due to sleep deprivation.
Journal: Applied Economics
Pages: 6504-6519
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159008
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159008
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:55:p:6504-6519



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2159011_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Akbar Ghasemkhani
Author-X-Name-First: Akbar
Author-X-Name-Last: Ghasemkhani
Author-Name: Saleh Ghavidel Doostkouei
Author-X-Name-First: Saleh
Author-X-Name-Last: Ghavidel Doostkouei
Author-Name: Amir Gholamabri
Author-X-Name-First: Amir
Author-X-Name-Last: Gholamabri
Author-Name: Mir Hossein Mousavi
Author-X-Name-First: Mir Hossein
Author-X-Name-Last: Mousavi
Title: The origins of comparative advantage: economic complexity and industrial inefficiency
Abstract: 
 In this study, we found out that the degree of complexity of the manufacturing sectors is related to their inefficiency degree and thus affects the comparative advantage. For this purpose, we used data from 4-digit ISIC manufacturing sectors from 28 countries, including 15 developed and 13 developing countries for the period, 2010 to 2019. Using the panel data method, the effect of industry complexity on the degree of inefficiency for each country has been estimated. The Data Envelopment Analysis (DEA) method has been used to estimate the inefficiency index in each industry. The result shows that the relationship between the inefficiency degree and the level of industry complexity in developed countries is hump-shaped, and in developing countries is U-shaped. The findings show that the inefficiency degree in developed countries decreases from the level of industrial complexity threshold of −0.53, while in developing countries increases from −0.19. Therefore, developing countries have a comparative advantage in industries whose level of complexity have in the range of −3 to −0.19 and developed countries in the range of −0.53 to +3. In the case of products whose complexity index is between −0.19 and −0.53, their comparative advantage is unclear.
Journal: Applied Economics
Pages: 6551-6566
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159011
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159011
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:55:p:6551-6566



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2159009_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fang Wu
Author-X-Name-First: Fang
Author-X-Name-Last: Wu
Author-Name: Xibao Guo
Author-X-Name-First: Xibao
Author-X-Name-Last: Guo
Author-Name: Xia Guo
Author-X-Name-First: Xia
Author-X-Name-Last: Guo
Title: The impact of cooperative membership on family farms’ income: evidence from China
Abstract: 
 Family farms and agricultural cooperatives play important roles in modern agriculture in many countries. Different from smallholder farms in scale, family farms have been designated as the predominant unit of farming in China in the recent decade. However, studies on the relationship between cooperatives and family farms’ income have been less frequent. Using survey data of 769 planting family farms in China, and employing the endogenous switching regression model, we examine the impact of cooperative membership on family farms’ operating income (including total and per capita income). The empirical results show that, after controlling for the selection bias, cooperative membership exerts a positive and significant impact on family farms’ income. And the income increase of non-member family farms if they had participated in cooperatives is much higher than that of family farms who are already members of cooperatives. Moreover, family farms that are common members of cooperatives, obtaining more centralized services and engaging in grain crop farming, would benefit more from cooperative membership. Technology-related service, marketing and information are critical pathways via which cooperative membership would increase family farms’ income.
Journal: Applied Economics
Pages: 6520-6537
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159009
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159009
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:55:p:6520-6537

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2156471_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yu Hua
Author-X-Name-First: Yu
Author-X-Name-Last: Hua
Author-Name: Haiyan Zhang
Author-X-Name-First: Haiyan
Author-X-Name-Last: Zhang
Title: Internet Penetration and Income Inequality: Evidence from the Chinese Young Labor Market
Abstract: 
 
The Internet technology has had a visible impact on the daily work and lives of people, especially the youth. This paper aims to investigate the influence of Internet technology on labour income as well as the channels through which income is affected, with a variety of empirical methods. Using the Chinese Family Panel Survey (CFPS) in 2014 and 2018, we discover that a ‘digital gap’ in Internet use is emerging. First, young labour force with higher income and education, urban identity, and working in high-skilled industry earn more from Internet use than their peers. Second, the return of operational income is higher than the return of wage income. Third, the return on long-term Internet use is higher than the return on short-term Internet use; however, the return has tended to decline, particularly among the bottom 25% income groups. Forth, the Internet affects their income through three main channels: assisting learning, improving working efficiency, and promoting information sharing. We also offer a few policy suggestions (e.g. improving the allocation of Internet resources).
Journal: Applied Economics
Pages: 6444-6458
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156471
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156471
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:54:p:6444-6458



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2156469_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kaibo Gao
Author-X-Name-First: Kaibo
Author-X-Name-Last: Gao
Author-Name: Zhongjing Tian
Author-X-Name-First: Zhongjing
Author-X-Name-Last: Tian
Title: The Effect of Motherhood on Wages: are women’s wage penalties due to lack of career aspirations?
Abstract: 
 Mothers’ wages tend to be lower than those of equivalent childless women, and many researchers have reported on this ‘motherhood wage penalty’. We explore the relationship between pre-school children and their mothers’ wages to estimate the short-term effects of the ‘motherhood wage penalty’ and test the mechanisms of the ‘motherhood wage penalty’ in terms of changes in mothers’ mindsets. In addition, a novel instrumental variable was found. Based on data from the China Family Panel Studies, we find that children in China have a significant negative impact on the increase in mothers’ wages. The penalty is most severe for the low-income group. The reduction in mothers’ career enthusiasm after childbirth explains only 3.5% of the wage gap, suggesting that the wage penalty for mothers may come mainly from extrinsic factors. In addition, we find that grandparent care and the establishment of public childcare centres are effective in mitigating the ‘motherhood wage penalty’, and that delaying retirement may be detrimental to mothers’ wage increases.
Journal: Applied Economics
Pages: 6410-6426
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156469
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156469
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:54:p:6410-6426



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2155608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Bassam M. AbuAl-Foul
Author-X-Name-First: Bassam M.
Author-X-Name-Last: AbuAl-Foul
Title: An evaluation of EIA gasoline price predictions
Abstract: 
 
This study evaluates the accuracy of the US Energy Information Administration (EIA) monthly forecasts of gasoline prices for 2005–2021. Our findings indicate that the 1-, 3-, 6-, 9-, and 12-month-ahead EIA forecasts do not, on average, significantly over- or under-predict gasoline prices, and they generally outperform the random walk and the nowcast-based benchmarks in terms of both the mean squared forecast error and the predictive information content. We further show that the shorter-horizon (longer-horizon) EIA forecasts predict directional change under asymmetric (symmetric) loss. Additional results indicate that the 1-, 3-, 6-, 9-, and 12-month-ahead EIA forecast errors are all orthogonal to consumer expected change in gasoline prices, actual change in core consumer price index, consumer vehicle-buying attitudes, and consumer sentiments. However, the 1-month-ahead (1- through 12-month-ahead) EIA forecast errors fail to be orthogonal to crude oil price changes (consumer expected inflation), meaning that these indicators can potentially help improve the accuracy of the EIA forecasts of gasoline prices.
Journal: Applied Economics
Pages: 6378-6390
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2155608
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2155608
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:54:p:6378-6390



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2154313_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sheng-Guo Li
Author-X-Name-First: Sheng-Guo
Author-X-Name-Last: Li
Author-Name: Xiao-Yue Xu
Author-X-Name-First: Xiao-Yue
Author-X-Name-Last: Xu
Author-Name: Qi-Hang Liu
Author-X-Name-First: Qi-Hang
Author-X-Name-Last: Liu
Author-Name: Zhi Dong
Author-X-Name-First: Zhi
Author-X-Name-Last: Dong
Author-Name: Ji-Chang Dong
Author-X-Name-First: Ji-Chang
Author-X-Name-Last: Dong
Title: Financial Development, Real Estate Investment and Economic Growth
Abstract: 
 
In recent years, China’s economic growth has shown a continuous downward trend, but the financial industry’s added value as a percentage of GDP and the financial development level have continued to rise, and real estate investment still maintains a relatively high proportion of total fixed asset investment in society. Taking financial development as the starting point, which is measured by the balance of loans from financial institutions as a percentage of GDP, this paper selects China’s provincial panel data from 2003 to 2017, and uses the system generalized method of moments to empirically study how financial development affects real estate investment and economic growth. The results reveal that financial development pushes up the proportion of real estate investment in fixed asset investment but has a negative impact on economic growth. The increase in the proportion of real estate investment promotes economic growth and plays a masking effect on the suppression of economic growth by financial development. Further analysis shows that financial development affects the growth of the real economy by restraining the development of the secondary industry and increasing real estate investment is conducive to alleviating the restraining effect of financial development on the growth of the real economy.
Journal: Applied Economics
Pages: 6360-6377
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2154313
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2154313
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:54:p:6360-6377



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2156470_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hengzhen Lu
Author-X-Name-First: Hengzhen
Author-X-Name-Last: Lu
Author-Name: Qiujin Gao
Author-X-Name-First: Qiujin
Author-X-Name-Last: Gao
Author-Name: Matthew C. Li
Author-X-Name-First: Matthew C.
Author-X-Name-Last: Li
Title: Does economic policy uncertainty outperform macroeconomic factor and financial market uncertainty in forecasting carbon emission price volatility? Evidence from China
Abstract: 
 
This paper explores the forecasting power of some of the most informative indicators of economic uncertainty on carbon emission price volatility. We use one- and two-component GARCH-MIDAS models based on mixed frequency data and Model Confidence Set (MCS) testing with ‘rolling scheme’ forecast method to examine the forecasting performance of economic uncertainty indicators. We employ an economic policy uncertainty (EPU) indicator with China, US and global economic policy uncertainty constituents together with traditional uncertainty indicators, such as macroeconomic and financial market volatility. Our empirical findings show that generally economic policy uncertainty indicators contain more information of carbon emission price volatility than other indicators. Specifically, one-component GARCH-MIDAS model with the EPU indicator with China constituent and two-component model with EPU indicator have superior performance in forecasting carbon emission price volatility of the Guangdong pilot in China. Our study adds insights into factors that affect carbon emission price movements.
Journal: Applied Economics
Pages: 6427-6443
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156470
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156470
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:54:p:6427-6443



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2154312_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Njato Rabehajaina
Author-X-Name-First: Njato
Author-X-Name-Last: Rabehajaina
Author-Name: Jean-Pierre Gueyie
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Gueyie
Author-Name: Komlan Sedzro
Author-X-Name-First: Komlan
Author-X-Name-Last: Sedzro
Title: Determinants of bilateral official development assistance
Abstract: 
 
According to the World Bank 2017 statistics, the inequalities between rich and poor countries have increased despite an 80% increase in the official development assistance volume. This persisted, even under the Millennium Development Goals (MDGs) regime (2000–2015), a period during which developing countries’ needs were assumed to be at the centre of the international community’s actions. Thus, one may question the effectiveness of aid and the real motivations of donor countries. This article aims to examine the factors that determine the bilateral official development assistance (BODA) allocation by using more recent data, and with an emphasis on whether donor countries have put into place a wish from the MDGs to largely take into account the needs of recipient countries in their ODA allocation decisions. Among other results, we show that the needs of recipient countries are taken into account by only small donors (in terms of volume) in their aid decisions. The major ODA providers do not follow the trend. Thus, rowing in line with the MDGs, putting the needs of recipient countries at the centre of BODA allocation was mainly limited to small ODA donors. Donor interest was is put forward by most of the donor countries.
Journal: Applied Economics
Pages: 6345-6359
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2154312
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2154312
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:54:p:6345-6359



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2155609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Arandarage Mayura Prasad Arandara
Author-X-Name-First: Arandarage Mayura Prasad
Author-X-Name-Last: Arandara
Author-Name: Shingo Takahashi
Author-X-Name-First: Shingo
Author-X-Name-Last: Takahashi
Title: Productive managers, productive branches, and the rewards. Evidence from the cooperative banks in Sri Lanka
Abstract: 
 
Using branch-manager linked data from the Cooperative Rural Banks (CRBs) of Sri Lanka, we investigate the source of branch performance differences. Despite the significant variation in the local conditions of branches, we found that managerial talent matters significantly. Manager effects explain 35% of the raw variation in the branch profit per worker and 45% of the raw variation in the branch-level non-performing loan ratio (NPLR). Branch effects explain a larger share of the variations in branch profit per worker (69%), but explain a smaller share of variation for NPLR (41%). We did not find evidence that branch managers are rewarded for their real contributions, measured by the estimated manager effects, via salary increase. Rather, they are rewarded merely for the raw performance of their branches. However, managers are rewarded with improved branch assignments when they increase profit-per-worker. A one standard deviation improvement in manager effects would increase the probability of being assigned to the top quartile branches by 8.7%.
Journal: Applied Economics
Pages: 6391-6409
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2155609
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2155609
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:54:p:6391-6409

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2161992_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Huaigang Long
Author-X-Name-First: Huaigang
Author-X-Name-Last: Long
Author-Name: Mardy Chiah
Author-X-Name-First: Mardy
Author-X-Name-Last: Chiah
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Title: Composite equity issuance and the cross-section of country and industry returns
Abstract: 
 Behavioural finance literature argues that stock issuance contains information on equity valuation. If so, does it predict the cross-section of both country and industry stock returns? To answer this question, we investigate data from 68 markets from 1976 to 2022. We find that composite equity issuance negatively correlates with future aggregate stock returns. An equal-weighted quintile of countries (industries) with the highest issuance underperforms those with the lowest by 0.34% (0.58%) per month. Established risk factors and other anomalies cannot subsume this cross-sectional pattern. Furthermore, the effect remains robust to many considerations. This documented issuance anomaly paves the way for an exploitable international investment strategy.
Journal: Applied Economics
Pages: 6627-6645
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161992
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161992
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:56:p:6627-6645



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2161993_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jing Luo
Author-X-Name-First: Jing
Author-X-Name-Last: Luo
Author-Name: YuCheng Lin
Author-X-Name-First: YuCheng
Author-X-Name-Last: Lin
Author-Name: Sijia Wang
Author-X-Name-First: Sijia
Author-X-Name-Last: Wang
Title: Intraday high-frequency pairs trading strategies for energy futures: evidence from China
Abstract: 
 We investigate the performance of pairs trading strategies based on Ornstein-Uhlenbeck (OU) process with jump-diffusion and regime-switching using minute-level data for five Chinese energy futures from 2 January 2020 to 30 November 2021 and compare them with traditional pairs trading strategies. Our results indicate that OU models can obtain an average return of 50.62% per annum and a Sharpe ratio of 2.63, which significantly exceed those of traditional pairs trading strategies. However, none of them could ‘win’ in every subperiod with diverse market conditions. Meanwhile, we find that introducing jump-diffusion indeed improves the performance (additional 25.37% annualized return and 1.12 Sharpe ratio). In contrast, considering more regimes does not always bring additional benefits. Robustness checks show that the superior performance of three-regime switching OU model (3RS-OUM) persists even under harsh trading conditions.
Journal: Applied Economics
Pages: 6646-6660
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161993
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161993
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:56:p:6646-6660



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2165615_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Author-Name: Karim Mimouni
Author-X-Name-First: Karim
Author-X-Name-Last: Mimouni
Author-Name: Ahmad Shikh Ebid
Author-X-Name-First: Ahmad
Author-X-Name-Last: Shikh Ebid
Title: Can government expenditure help reconstruct the Syrian economy in the post-conflict period? evidence from the SVAR and nonlinear ARDL models
Abstract: 
 This paper explores the viability of the fiscal policy in the reconstruction of the Syrian economy. We use the Structural VAR estimation technique to assess the response of real GDP to shocks in government expenditures and exchange rates in the parallel market. We also control for other variables including money supply and oil prices. We find that government spending is an effective tool for economic recovery in particular under a quasi-fixed exchange rate regime. We also employ the nonlinear ARDL (NARDL) model to detect the existence of asymmetrical effects of government spending on real GDP. The NARDL results show that negative changes in government expenditure have more impact on economic growth compared to positive changes. Additionally, the NARDL model reveals that the post-conflict period was characterized by large government spending’ inefficiencies. Finally, we study three alternative government spending’ rebuilding scenarios. We document that reaching the pre-conflict GDP level is possible under two of the scenarios we investigate. Hence, our results provide strong policy implications according to which fiscal policy can, under specific exchange rate regimes, reverse the adverse effects of civil wars.
Journal: Applied Economics
Pages: 6661-6675
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165615
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165615
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:56:p:6661-6675



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2161990_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Le Wen
Author-X-Name-First: Le
Author-X-Name-Last: Wen
Author-Name: Sholeh A. Maani
Author-X-Name-First: Sholeh A.
Author-X-Name-Last: Maani
Author-Name: Zhi Dong
Author-X-Name-First: Zhi
Author-X-Name-Last: Dong
Title: Educational job mismatch, job satisfaction, on-the-job training, and employee quit behaviour: a dynamic analytical approach
Abstract: 
 This paper extends the literature on the consequences of over-education, in particular quit outcomes. It is the first study that explicitly tests the impact of job satisfaction and on-the-job training for workers in educational mismatched jobs and on quit behaviour using a longitudinal data set. Accounting for unobserved heterogeneity and endogeneity, the dynamic analytical framework examines labour market outcomes for job-mismatched workers. We find that over-education alone, or accompanied by skill under-utilization in combination with lower job satisfaction, increases the incidences of job quitting. Opportunities for training facilitate the retention of initially job-mismatched workers. These results have implications for interpreting mismatch data, retention, and resource allocation.
Journal: Applied Economics
Pages: 6605-6626
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161990
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161990
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:56:p:6605-6626



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2165616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Antonio C. David
Author-X-Name-First: Antonio C.
Author-X-Name-Last: David
Author-Name: Carlos Eduardo Goncalves
Author-X-Name-First: Carlos Eduardo
Author-X-Name-Last: Goncalves
Author-Name: Alejandro Werner
Author-X-Name-First: Alejandro
Author-X-Name-Last: Werner
Title: It is causal: revisiting the savings and investment nexus1
Abstract: 
 Domestic savings and investment are positively correlated across countries and through time, as first suggested by Feldstein and Horioka (1980). However, whether this long-lasting correlation implies causation is still an open question. In this paper, we use instrumental variables in a panel setting and show that domestic savings do cause investment in developing economies. In contrast, for advanced countries the statistically significant correlation found in the data seems to result from endogeneity bias. Our identification strategy relies on the idea that age structure influences savings, but not total investment directly. Time-series data patterns for the United States and the theory of Direct Technological Change lend credence to our exclusion restriction.
Journal: Applied Economics
Pages: 6676-6684
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165616
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165616
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:56:p:6676-6684



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2161989_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kabir Dasgupta
Author-X-Name-First: Kabir
Author-X-Name-Last: Dasgupta
Author-Name: Alexander Plum
Author-X-Name-First: Alexander
Author-X-Name-Last: Plum
Title: Human capital formation and changes in low pay persistence
Abstract: 
 This study presents new empirical evidence on the role of time trends in low pay persistence. We utilize population-wide tax records to track monthly labour market trajectories of initially low-paid workers. By performing age- and qualification-specific regressions, we find that low pay persistence reduces with time. However, the magnitude is highly heterogeneous across workforce characteristics. For a qualified worker in their early 20s, the risk of staying on low-pay declines by, on average, 5–10% points after one year. For a worker in their 50s, persistence remains almost unchanged regardless of their qualification level. We conclude that policy initiatives need to be more nuanced than a simple one-size-fits-all approach by accounting for time trends in low-pay persistence.
Journal: Applied Economics
Pages: 6583-6604
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161989
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161989
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:56:p:6583-6604



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2161991_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Iacopo Odoardi
Author-X-Name-First: Iacopo
Author-X-Name-Last: Odoardi
Author-Name: Dario D’Ingiullo
Author-X-Name-First: Dario
Author-X-Name-Last: D’Ingiullo
Author-Name: Davide Quaglione
Author-X-Name-First: Davide
Author-X-Name-Last: Quaglione
Title: Gender disparities between young and adult NEETs: do we need a more refined policy approach?
Abstract: 
 Italy has the highest rate of individuals Not in Employment, Education or Training (NEET) in Europe, and its NEET has the highest gender bias in Western Europe. A marked heterogeneity, however, accompanies the age sub-groups, and women’s conditions become systematically worse with advancing age. Using data from 2019, we investigate the association between the probability of being NEET and a set of individual and regional (socioeconomic and institutional) characteristics, examining whether and to what extent the role of these determinants varies depending on gender within two distinct age groups: young (15–24) and adult (25–34) NEETs. In general, we find clear evidence that women are at a relative disadvantage compared to men and, as age increases, both positive and negative determinants show relations that tend to weaken for men and to worsen for women. The results of our analyses also suggest that social/family obligations affect men and women differently, to the detriment of women, and that this disparity widens with age. The contrast between the position of men and women within marriage is empirically confirmed and perfectly captured by marginal effects with opposite signs. The policy implications of our analysis are discussed in the concluding section of this paper.
Journal: Applied Economics
Pages: 6685-6699
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161991
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161991
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:56:p:6685-6699

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yue Dou
Author-X-Name-First: Yue
Author-X-Name-Last: Dou
Author-Name: Fuzhong Chen
Author-X-Name-First: Fuzhong
Author-X-Name-Last: Chen
Author-Name: Zhaoyang Kong
Author-X-Name-First: Zhaoyang
Author-X-Name-Last: Kong
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: Re-estimating the trade openness–carbon emissions nexus: a global analysis considering nonlinear, mediation, and heterogeneous effects
Abstract: 
 The impact of trade openness on environment is of increasing concern to environmental practitioners, industrialists, and researchers. Unlike previous studies that only focus on the impact of trade openness on carbon dioxide (CO2) emissions, this study explores the relationship between trade openness and carbon productivity. To this end, we construct a dynamic nonlinear panel model using a panel sample of 76 countries for the period 1990–2021. Furthermore, we conduct a mediation effect analysis to examine the underlying impact mechanisms between trade openness and carbon productivity. Finally, by dividing the total sample into four subsamples, we analyse possible regional heterogeneity in trade openness and carbon productivity relationship. The empirical results show that: (1) Trade openness has a significant impact on carbon productivity, with a U-shaped relationship between the two variables. In other words, carbon productivity first declines and then rises after a certain threshold level of trade openness is reached. (2) Energy intensity and energy consumption structure are two important mediators between trade openness and carbon productivity. (3) The impact of trade openness on carbon productivity is heterogeneous across countries. Based on the main findings, we propose several policy implications to improve trade quality as well as global carbon productivity.
Journal: Applied Economics
Pages: 6793-6808
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166659
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166659
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:57:p:6793-6808



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2165618_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chi-Young Choi
Author-X-Name-First: Chi-Young
Author-X-Name-Last: Choi
Title: State political uncertainty and local housing markets - Evidence from U.S. mid-term gubernatorial elections
Abstract: 
 Using U.S. county-level data, this paper finds a significant negative impact of state political uncertainty on local house price growth. A unit increase in state political uncertainty is associated with about 3.4% point decrease in county-level house price growth. The impact is asymmetric and varies widely across localities, with a weaker impact found in areas with a higher fraction of homeowners. The results are robust to endogeneity, sample selection, model specifications, and alternative measures of uncertainty. The main findings are further confirmed by a case study based on a difference-in-difference analysis.
Journal: Applied Economics
Pages: 6717-6738
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165618
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165618
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:57:p:6717-6738



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2165620_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Léonard Moulin
Author-X-Name-First: Léonard
Author-X-Name-Last: Moulin
Title: What are the medium-term educational and labour market effects of private schooling?
Abstract: 
 This article examines the impact of private school attendance on a range of outcomes during adulthood. Students are followed for seventeen years after they enter the sixth grade. The effect of private schooling on educational and labour market outcomes is estimated using propensity score matching. Private schooling has a positive effect on the likelihood of obtaining the baccalauréat and a higher education qualification, as well as obtaining a higher wage, for both girls and boys. A series of robustness tests confirms these results.
Journal: Applied Economics
Pages: 6759-6775
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165620
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165620
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:57:p:6759-6775



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2165619_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Teng Ma
Author-X-Name-First: Teng
Author-X-Name-Last: Ma
Author-Name: Yimeng Du
Author-X-Name-First: Yimeng
Author-X-Name-Last: Du
Author-Name: Tao Xu
Author-X-Name-First: Tao
Author-X-Name-Last: Xu
Author-Name: Jun Pang
Author-X-Name-First: Jun
Author-X-Name-Last: Pang
Title: How the thermal power sector affects carbon trading: an empirical study on China’s carbon markets
Abstract: 
 By using a dynamic panel data model, this study investigated how the production of thermal power affects China’s regional pilot carbon markets with a focus on carbon price, trading volume, realized volatility, and market liquidity. Our results suggest that the production of thermal power has slightly increased the trading volume, but has not affected carbon prices based on the existence of excessive CO$$_2$$ 2 allowances. Moreover, thermal power production has increased realized volatility in the pilot markets. However, this impact was reduced following the announcement of the National Emission Trading System (ETS). This demonstrates that thermal power companies in pilot carbon markets tend to trade carbon credit more actively in response to policies favouring further market liberalization, rather than passively following government instructions. Furthermore, we find that realized volatility and liquidity increased in the Hubei and Shanghai pilots following the announcement. This demonstrates that the announcement of the National ETS improved the market activity and efficiency, and pricing capacity of its host pilot markets. However, this improvement could only be observed in the short term. Therefore, the government should reallocate CO$$_2$$ 2 allowances to match its emission reduction targets and incentivize industries with high carbon intensity to participate in carbon trading.
Journal: Applied Economics
Pages: 6739-6758
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165619
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165619
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:57:p:6739-6758



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jia Li
Author-X-Name-First: Jia
Author-X-Name-Last: Li
Author-Name: Taoufik Bouraoui
Author-X-Name-First: Taoufik
Author-X-Name-Last: Bouraoui
Author-Name: Magdalena Radulescu
Author-X-Name-First: Magdalena
Author-X-Name-Last: Radulescu
Title: On the drivers of sustainable development: empirical evidence from developed and emerging markets
Abstract: 
 Why do firms’ sustainability disclosure performance differ so much between firms and across countries? Which factors drive firm’s awareness of sustainable development and do these factors have different driving mechanisms between developed and emerging countries? We answer these questions using a panel data regression model on around 1500 companies from 20 developed countries and 20 emerging countries during the period from 2009 to 2019. Our empirical results reveal that both firm-level and country-level variables are important predictors for sustainable disclosure performance. In developed countries, most firm-level indicators show a significant and positive effect on Environmental, Social and Governance (ESG) disclosure scores. In emerging countries, only operating performance, measured by total revenues, and firm size have a positive impact on ESG disclosure, while high level of profitability is associated with low ESG score. On the country level, we find a significant relationship between all drivers and ESG scores in developed countries. However, in emerging markets, only economic, cultural (excepting uncertainty avoidance index) and technological factors are shown to impact significantly sustainable development.
Journal: Applied Economics
Pages: 6809-6821
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166660
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166660
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:57:p:6809-6821



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2165621_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mario Lackner
Author-X-Name-First: Mario
Author-X-Name-Last: Lackner
Title: Effort and risk-taking in tournaments with superstars – evidence for teams
Abstract: 
 Competition is often observed between heterogenous teams. Heterogeneity in ability is critical for the effectiveness of different tournament designs. I investigate how the presence of a dominant competitor or superstar does affect the decisions of other competitors in team contests. In particular, I use novel data from top-level professional basketball to investigate the consequences of superstar presence on effort and risk-taking of teams in rank-order contests. To identify the effect, I exploit exogenous variation in superstar dominance, induced by an institutional reform. My results demonstrate that the effect of competing with a superstar on effort does depend on the level of superstar dominance and the number of dominant teams in the contest. For tournaments with a single and clearly dominant superstar team, I find a sizable and significant negative effect of superstar presence on effort of other competing teams. Reduced dominance by the superstar, however, is found to result in a positive peer effect. I also present results for a robust association between competing with a superstar and risk-taking, indicating that a dominant superstar decreases risk-taking. Presence of a weak superstar, however, is estimated to increase risk-taking among other competitors.
Journal: Applied Economics
Pages: 6776-6792
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165621
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165621
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:57:p:6776-6792



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2165617_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peter Zweifel
Author-X-Name-First: Peter
Author-X-Name-Last: Zweifel
Author-Name: Philippe K. Widmer
Author-X-Name-First: Philippe K.
Author-X-Name-Last: Widmer
Title: Accounting for heterogeneity in the measurement of hospital performance
Abstract: 
 As the Corona pandemic of 2020 has shown, disposing of sufficient hospital capacity is of great importance. Ideally, this capacity should be provided by efficient units, calling for measurement of their performance. However, the standard cost frontier model yields biased efficiency scores because it ignores (often unobserved) heterogeneity between hospitals. In this paper, efficiency scores are derived from a cost function with both random intercept and random slope parameters which overcomes the problem of unobserved heterogeneity in stochastic frontier analysis. Based on an unbalanced panel covering the years 2004 to 2007 and comprising at least 100 Swiss hospitals per year, Bayesian inference points to significant heterogeneity suggesting rejection of the standard cost frontier model. When unobserved heterogeneity is fully accounted for, average estimated inefficiency decreases to 5%, below the 14% (21%, respectively) value reported for a number of European and Middle-Eastern countries (Hollingsworth, 2008; Alawi et al. 2019). Moreover, hospitals rated below 85% efficiency according to the standard model gain up to 12% points. They can provide much needed capacity that otherwise would be discarded on the grounds that they are not sufficiently efficient providers.
Journal: Applied Economics
Pages: 6701-6716
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165617
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165617
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:57:p:6701-6716

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qiyao Zhou
Author-X-Name-First: Qiyao
Author-X-Name-Last: Zhou
Author-Name: Debao Hu
Author-X-Name-First: Debao
Author-X-Name-Last: Hu
Author-Name: Keren Shi
Author-X-Name-First: Keren
Author-X-Name-Last: Shi
Title: The persistent effects of early career contracts: evidence from NBA drafts
Abstract: 
 This article examines the persistent effects of early career contracts using the National Basketball Association (NBA)’s draft data over the period 1995–2019. We use regression discontinuity design (RDD) to compare the differences in career outcomes between the first-round picked rookies and the second-round picked ones. The empirical results suggest that draft rounds per se significantly influence a player’s career outcome in almost all indicators (i.e. career earnings, total points scored, and total years played). Explorations of the mechanisms suggest that differences in rookie contract length and sunk costs influence teams’ human capital investment in rookies.
Journal: Applied Economics
Pages: 6876-6891
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166662
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166662
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:58:p:6876-6891



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2266604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuhang Mao
Author-X-Name-First: Yuhang
Author-X-Name-Last: Mao
Author-Name: Meng Niu
Author-X-Name-First: Meng
Author-X-Name-Last: Niu
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Author-Name: Zhenguo Wang
Author-X-Name-First: Zhenguo
Author-X-Name-Last: Wang
Title: How does the digital economy affect value-added in China? Dual perspectives from digital demand and supply
Abstract: 
 The Digital Economy (DE) has dramatically changed our lives and economies. However, few have systematically quantified the economic impact of DE. To this end, we propose a systematic input-output framework to analyse the economic impact of DE. We detangle the intertwined relations between digital sectors and upstream and downstream sectors by evaluating the embodied and enabled value-added. Then we use the structural path analysis to find the core transmission paths between the digital and upstream and downstream sectors. Further, we use the structural decomposition analysis to determine the main drivers of DE affecting the embodied and enabled value-added. Our findings are as follows. First, the digital sectors have significantly driven the value-added of upstream and downstream sectors. Second, there is heterogeneity in the roles of the digital device and service sectors. Third, on the value-added path, The Other services sector is the non-digital sector, which is closely related to the digital sectors. Finally, the expanding digital demand and primary input are the major driving forces for China’s rapid digital-embodied and digital-enabled value-added growth.
Journal: Applied Economics
Pages: 6832-6854
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2266604
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2266604
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:58:p:6832-6854



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166664_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Thomas Blavet
Author-X-Name-First: Thomas
Author-X-Name-Last: Blavet
Author-Name: Pierre Ouellette
Author-X-Name-First: Pierre
Author-X-Name-Last: Ouellette
Author-Name: Stéphane Vigeant
Author-X-Name-First: Stéphane
Author-X-Name-Last: Vigeant
Title: α-returns to scale with quasi-fixed inputs: an application to Québec hospitals
Abstract: 
 This paper focuses on the determination and estimation of the optimal size of hospitals. To determine the optimal size of a production unit, we use the measurement of returns to scale (RTS) at the decision-making unit level. When the RTS are constant, the unit is deemed of optimal size as the average total cost is at its minimum. As we deal with public service in a non-market environment, we have to take into account the fact that hospitals may not operate efficiently. To estimate the required production frontier we adapt the α-returns to scale method (a DEA type algorithm compatible with non-convexity of the production set) to include quasi-fixed factors. This methodology is applied to Québec hospitals at different points in time in order to capture the effect of the restructuring of the public health system over the last three decades. We conclude that by relying more on larger institution the scale efficiency of the public system has increased. However, in spite of the large reduction in the number of small hospitals and their replacement by very large structures, the movement may have gone too far, as most of the large institutions tend to exhibits decreasing returns to scale.
Journal: Applied Economics
Pages: 6922-6938
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166664
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166664
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:58:p:6922-6938



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211334_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kyungsoo Oh
Author-X-Name-First: Kyungsoo
Author-X-Name-Last: Oh
Title: Energy use in U.S. manufacturing and increasing imports from China: Empirical analysis
Abstract: 
 This study numerically estimates the effect of increased Chinese import penetration using U.S. manufacturing-level panel data from 1997 to 2005. It also decomposes this effect into factor substitution effects and output scale effects. Since import penetration rates may have endogeneity problems, we use China’s share of world trade to quantify Chinese import penetration. The results show that increased imports from China increase fuel and electricity consumption: the marginal effect of Chinese import penetration is small but statistically significant, ranging from about 0.05% to 0.08%. Interestingly, the decomposition reveals opposite effects across energy types: the factor substitution effect for fuel is positive, while the factor substitution effect for electricity is negative, despite the impact of Chinese imports. The effects on fuel and electricity are both significantly positive, while the effect on electricity is negative. These results suggest the need for different policy responses across industries to the effects of trade, with implications for the environmental problems caused by energy use.
Journal: Applied Economics
Pages: 6823-6831
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2211334
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211334
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:58:p:6823-6831



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2269615_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Danyu Liu
Author-X-Name-First: Danyu
Author-X-Name-Last: Liu
Author-Name: Yongkang Lin
Author-X-Name-First: Yongkang
Author-X-Name-Last: Lin
Author-Name: Shijiao Fang
Author-X-Name-First: Shijiao
Author-X-Name-Last: Fang
Title: Does green innovation reduce carbon emission intensity of Chinese cities? Analysis based on GS2SLS
Abstract: 
 In the 14th Five-Year Plan, China’s economic and social development aims to focus on carbon peaking and carbon neutrality. On the basis of panel data of 284 prefecture-level cities in China from 2011 to 2020, this study uses the generalized spatial two-stage least squares method (GS2SLS) to analyse empirically the relationship and mechanism between the green innovation and carbon emission intensity（CEI） of Chinese cities. The research reveals several findings. (1) The CEI of Chinese cities has a significant spatial spillover effect. Moreover, green innovation has reduced the CEI of Chinese cities. The robustness and endogenous tests further verified this conclusion. (2) The carbon emission reduction effect of green innovation shows significant regional heterogeneity, which is more significant in eastern regions and cities with high innovation capabilities. In contrast, this outcome is not significant in regions with weaker innovation capabilities and in the central and western regions. (3) Green innovation mainly reduces the CEI of Chinese cities by promoting the upgrading of industrial structures. A higher level of digital economy development will also have a significantly positive catalytic effect on green innovation to inhibit CEI.
Journal: Applied Economics
Pages: 6892-6904
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2269615
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2269615
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:58:p:6892-6904



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jin Chen
Author-X-Name-First: Jin
Author-X-Name-Last: Chen
Author-Name: Yue Chen
Author-X-Name-First: Yue
Author-X-Name-Last: Chen
Author-Name: Qinen Gu
Author-X-Name-First: Qinen
Author-X-Name-Last: Gu
Author-Name: Wei Zhou
Author-X-Name-First: Wei
Author-X-Name-Last: Zhou
Title: Network evolution underneath the volatility spillover in traditional and clean energy markets
Abstract: 
 When facing volatility spillovers in energy markets, all players require risk mitigation strategies to insulate themselves from the same. To prevent energy markets from being strongly crashed by volatility spillovers, which even trigger financial crises, in this paper, we use network analysis as an aid to identify spillovers among the main nine energy markets. Specifically, we first measure the volatility spillovers among the main energy markets through a BEKK model. Based on this, influential markets are identified by using network analysis. The coal, wind and water energy markets should be paid close attention as they occupy vital roles in the volatility spillover network. Even though clean energy markets contribute more in terms of market stability, traditional energy markets are still important to ensure energy supply when experiencing extreme crashes caused by COVID-19. In this paper, we make the contributions to analysing volatility spillovers in multiple energy markets and identifying crucial energy markets in volatility spillover networks, then provide more market information that helps the government and policymakers effectively manage systemic risks caused by volatility spillovers. The effective risk management of crucial energy markets enhances economic recovery and stability, especially in the post-COVID-19 era.
Journal: Applied Economics
Pages: 6905-6921
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166663
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166663
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:58:p:6905-6921



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166661_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wen Ding
Author-X-Name-First: Wen
Author-X-Name-Last: Ding
Author-Name: Wei Jin
Author-X-Name-First: Wei
Author-X-Name-Last: Jin
Title: Production operations, financing and information asymmetry in a supply chain with a random yield
Abstract: 
 This paper studies bank loan and advance payment in a random yield supply chain, consisting of one core manufacturer and one capital-constrained supplier who possesses private information on the supply state. With an information advantage, the supplier has a motive to hide his actual capital requirements to obtain more funds and shift to other risky projects. We focus on the credit contract design, which helps effectively prevent the supplier’s excess debt motive. We characterize the supplier’s best response, the optimal contract menus and all participators’ profits under information symmetry and asymmetry, respectively. By designing the credit contract, creditors can effectively prevent funds from flowing out of the supply chain in asymmetric cases. We then investigate the willingness of creditors to provide financing. Our findings show that the bank is always willing to provide financial support, regardless of the information state. However, the manufacturer’s willingness to provide a loan depends on the value of the supplier’s reservation profit. In addition, advance payment is preferable over bank loan for the supplier. Furthermore, we explore the value of information, illustrating that information harms the supplier but benefits creditors in most cases.
Journal: Applied Economics
Pages: 6855-6875
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166661
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166661
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:58:p:6855-6875

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167925_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kassoum Ayouba
Author-X-Name-First: Kassoum
Author-X-Name-Last: Ayouba
Author-Name: Marie-Line Duboz
Author-X-Name-First: Marie-Line
Author-X-Name-Last: Duboz
Author-Name: Julie Le Gallo
Author-X-Name-First: Julie
Author-X-Name-Last: Le Gallo
Title: Assessing French departments’ spending efficiency over time
Abstract: 
 We analyse the way in which spending efficiency of French departments evolved from 2007 to 2019. We use the time-dependent conditional order-m approach , which allows to account for the heterogeneity among departments, characterized by contextual variables, and to evaluate the effect of these variables. The results reveal a continuous improvement in their performance (management of total expenditures) over time and show that departments have much more room for improvement in the management of investment expenditures than in the management of operating costs. Moreover, the time variable has a positive effect on performance (shape of the frontier and catch-up) for both the operating and the investment specific models.
Journal: Applied Economics
Pages: 6939-6964
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2167925
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167925
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:59:p:6939-6964



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2170971_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ting Ding
Author-X-Name-First: Ting
Author-X-Name-Last: Ding
Author-Name: Yue Li
Author-X-Name-First: Yue
Author-X-Name-Last: Li
Author-Name: Wenzhong Zhu
Author-X-Name-First: Wenzhong
Author-X-Name-Last: Zhu
Title: Can Digital Financial Inclusion (DFI) effectively alleviate residents’ poverty by increasing household entrepreneurship? – an empirical study based on the China Household Finance Survey（CHFS）
Abstract: 
 Based on data from CHFS, this paper explores the mitigating effect of DFI development to enhance household entrepreneurship on residents’ income growth and asset poverty, and analyses whether there is significant diversity in the degree of impact between different regions and groups through a heterogeneity study. The study finds that DFI has a significant effect on poverty alleviation. In the mechanism analysis, the effect of DFI on income poverty and asset poverty alleviation through promoting household entrepreneurship is 2.97% and 9.27% respectively. In the heterogeneity, the development of DFI has a significant contribution to the alleviation of income poverty of rural residents and the alleviation of asset poverty of urban residents; among similar regions, the poverty effect alleviation effect is more pronounced for the group with higher education level. This paper enriches the research related to the promotion of entrepreneurship and thus poverty alleviation by DFI, and provides a theoretical basis and empirical reference for how to alleviate poverty by financial instruments.
Journal: Applied Economics
Pages: 6965-6977
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2170971
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170971
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:59:p:6965-6977



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208337_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhonghua Huang
Author-X-Name-First: Zhonghua
Author-X-Name-Last: Huang
Author-Name: Xuejun Du
Author-X-Name-First: Xuejun
Author-X-Name-Last: Du
Title: Land misallocation and economic performance: evidence from China
Abstract: 
 We study the causes and consequences of land misallocation based on matched Chinese firm-level data and land transaction data during 1998–2016. We employ a land misallocation index and identify significant land misallocation in China. We find that price distortion and political incentives are associated with land misallocation. Land misallocation has important implications for economic performance. We quantify the relationship between land misallocation and productivity and find that a one standard deviation decrease in land misallocation is associated with a 14.51% decrease in labour productivity and a 10.76% reduction in total factor productivity.
Journal: Applied Economics
Pages: 7048-7064
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2208337
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208337
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:59:p:7048-7064



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206622_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bin Liu
Author-X-Name-First: Bin
Author-X-Name-Last: Liu
Author-Name: Yuan Yuan
Author-X-Name-First: Yuan
Author-X-Name-Last: Yuan
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Author-Name: Jian Zhou
Author-X-Name-First: Jian
Author-X-Name-Last: Zhou
Title: Loan guarantees and guarantors’ accounting conservatism: evidence from China
Abstract: 
 Listed companies in China have provided large numbers of loan guarantees for borrowers in recent years. The loan guarantee size of A-share Main Board listed companies was about RMB 3.85 trillion at the end of 2017. On the one hand, loan guarantees help borrowers access debt financing, which promotes the development of capital markets. On the other hand, however, loan guarantees can increase the financial risks for guarantors. This study investigates the effects of loan guarantees on guarantors’ accounting conservatism. Based on a large sample of listed companies from 2007 to 2017, we find that loan guarantees have a significant positive effects on guarantors’ accounting conservatism. When firms provide loan guarantees for borrowers, they report more conservative accounting information. Moreover, the effect of loan guarantees on accounting conservatism varies by borrower. Listed companies report more conservative accounting information when they provide guarantees for non-subsidiaries rather than for subsidiaries. Among the companies providing guarantees for non-subsidiaries, the companies engage in higher levels of accounting conservatism when they guarantee the borrowing of controlling shareholders instead of the borrowing of non-controlling shareholders.
Journal: Applied Economics
Pages: 6997-7016
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206622
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206622
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:59:p:6997-7016



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206621_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tereza Němečková
Author-X-Name-First: Tereza
Author-X-Name-Last: Němečková
Author-Name: Arshad Hayat
Author-X-Name-First: Arshad
Author-X-Name-Last: Hayat
Title: Services Trade and Institutional Quality: Evidence from Africa
Abstract: 
 Africa seems to operate at a different structural path of economic development than expected. Unlike the long-awaited increase in manufacturing, services are bourgeoning on the continent and so increases the services trade. Our article points attention to this new phenomenon and investigates whether this new type of African trade promises better effects on institutional quality than traditionally dominant natural resources trade, leading often to devastating effects. If proved, this could have significant policy implications. We work with panel data of 40 African countries within the period 2005–2019 and use the structural equation model and the maximum likelihood method to estimate the effects of services trade in Africa on three selected variables of institutional quality. Our results show that services trade seems to be a statistically significant and positive determinant of institutional quality in Africa. However, the effects are not equal across the investigated service types.
Journal: Applied Economics
Pages: 6978-6996
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206621
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206621
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:59:p:6978-6996



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guifu Chen
Author-X-Name-First: Guifu
Author-X-Name-Last: Chen
Author-Name: Lin Zheng
Author-X-Name-First: Lin
Author-X-Name-Last: Zheng
Author-Name: Liyan Wu
Author-X-Name-First: Liyan
Author-X-Name-Last: Wu
Title: Do imports and exports exacerbate employment volatility? Evidence from Chinese A-share-listed industrial enterprises
Abstract: 
 To build a new development pattern in China, it is important to study the impact of import and export trade on its employment. We measured employment volatility and empirically analysed the impact of trade status and import and export intensity on the employment volatility of labour requiring different skill levels in A-share-listed industrial enterprises from 2003 to 2015. We found that firms engaging in import and export trade can significantly reduce employment volatility for both high- and low-skilled labour. Furthermore, differences were noted in the degree of impact on the two skill levels. The results indicate that an increase in export intensity does not reduce employment volatility in high-skilled labour. However, an increase in import intensity significantly reduces employment volatility in both high- and low-skilled labour. Moreover, export and import trade reduce employment volatility by reducing the volatility in firms’ output and wages and by promoting investment in research and development.
Journal: Applied Economics
Pages: 7017-7032
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206632
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206632
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:59:p:7017-7032



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206993_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Rana Mostaghel
Author-X-Name-First: Rana
Author-X-Name-Last: Mostaghel
Author-Name: Pejvak Oghazi
Author-X-Name-First: Pejvak
Author-X-Name-Last: Oghazi
Title: Local individualism culture and lower third-party guarantee loan defaults: evidence from SBA loans in the US
Abstract: 
 Building on the literature on individualistic culture and entrepreneurship, we use variation in a US county’s frontier experience (rugged individualism) as a proxy for local individualism to explain variation in SBA loan default rates. For every 10-year increase in frontier experience in a county (ranging from 0 to 63 years between 1790 and 1890), the hazard of default was 0.964 times lower, a small but economically meaningful effect. The effects are more salient for sole proprietors and robust to economic shocks from neighbouring shale boom counties and placebo tests. The results indicate that expanding the eligibility requirements for SBA loans to include individuals from US counties with individualistic cultures may be beneficial.
Journal: Applied Economics
Pages: 7033-7047
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206993
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206993
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:59:p:7033-7047

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208858_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Filipe B. Caires
Author-X-Name-First: Filipe B.
Author-X-Name-Last: Caires
Author-Name: Hugo Reis
Author-X-Name-First: Hugo
Author-X-Name-Last: Reis
Author-Name: Paulo M. M. Rodrigues
Author-X-Name-First: Paulo M. M.
Author-X-Name-Last: Rodrigues
Title: Survival of the fittest: tourism exposure and firm survival
Abstract: 
 In this article, a discrete-time hazard model to study firm survival in the Portuguese Tourism sector is estimated. This sector has experienced a remarkable performance over the last decades. Results show that when compared to other sectors, tourism firms are more likely to exit: (i) if they are young (less than 10 years of existence); and (ii) if they belong to the group of worse performers (i.e. belong to the lower tail of the firm distribution). Within tourism related sectors, firms with highest tourism exposure, such as travel agencies and hotels are always among the best performers in terms of survival. Moreover, despite of Tourism being one of the most volatile sectors in periods of high uncertainty, results show a higher survival resilience among established tourism associated firms.
Journal: Applied Economics
Pages: 7150-7177
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2208858
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208858
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:60:p:7150-7177



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177593_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jung-Hee Noh
Author-X-Name-First: Jung-Hee
Author-X-Name-Last: Noh
Author-Name: Heejin Park
Author-X-Name-First: Heejin
Author-X-Name-Last: Park
Author-Name: Eomcheol Tae
Author-X-Name-First: Eomcheol
Author-X-Name-Last: Tae
Title: Reliability of interim performance in private equity funds
Abstract: 
 We compared the interim and final realized internal rate of return for liquidated buyout funds (238) and venture capital funds (233) in the U.S. from 1985 to 2019. The results revealed that buyout funds’ interim performance tends to be underestimated, while that of venture capital funds can be underestimated or overestimated, depending on the period and associated global events. Further, we found that private equity funds’ interim performance is affected by fund performance, investment stage, and stock market performance. These results were robust to other performance measures. Our findings will assist private equity investors, policy makers, and regulators to better evaluate interim performance reliability based on fair value estimates.
Journal: Applied Economics
Pages: 7065-7078
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2177593
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177593
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:60:p:7065-7078



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203896_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shanxin Zhou
Author-X-Name-First: Shanxin
Author-X-Name-Last: Zhou
Author-Name: Yanzhen Wang
Author-X-Name-First: Yanzhen
Author-X-Name-Last: Wang
Author-Name: Peng Luo
Author-X-Name-First: Peng
Author-X-Name-Last: Luo
Title: Does the Belt and Road Initiative (BRI) improve environmental quality of BRI countries? Evidence from a quasi - natural experiment
Abstract: 
 Based on the panel data of 91 countries from 2009 to 2019, we apply difference-in-difference (DID) method and decoupling analysis to examine the effects on environmental quality and economic growth from a dual perspective. This study found that: (1) the Belt and Road Initiative improves the environmental quality of BRI countries. (2) The initiative has more significantly improved environment of the carbon peaking achieved countries, non-tropical regions rather than their counterparts; It has a beneficial effect in both landlocked and coastal countries. No matter the countries are industrialized or not, participating in China’s high-speed rail projects or not, their environments have been improved. But the improvement is more pronounced for industrialized countries and countries not involved in China’s high-speed rail projects. Meanwhile, the more complete citizens’ voice and accountability, and the higher financial expenses, the more significant improvement there is for them. (3) The initiative can improve environment through investment, employment structure and clean energy. (4) The initiative also significantly boosts the economic growth of BRI countries. Furthermore, decoupling relationship between Gross Domestic Product (GDP) growth and carbon emission levels shows that the number of BRI countries in strong decoupling state gradually decreases in 2015–2017, while increasing in 2018–2019.
Journal: Applied Economics
Pages: 7094-7110
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2203896
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203896
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:60:p:7094-7110



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206105_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Si Wang
Author-X-Name-First: Si
Author-X-Name-Last: Wang
Author-Name: Chenggang Wang
Author-X-Name-First: Chenggang
Author-X-Name-Last: Wang
Author-Name: Huixia Wang
Author-X-Name-First: Huixia
Author-X-Name-Last: Wang
Title: Air pollution impacts on health care expenditure in China: evidence and mechanisms
Abstract: 
 This paper studies the causal eﬀects of air pollution on individual-level health care expenditure in China. We employ a nationally-representative panel dataset of the China Health and Nutrition Survey from 1991 to 2015 to estimate the impacts of air pollution on various types of health care expenditures. Using thermal inversions as an instrumental variable for air pollution, we fnd that exposure to air pollution in the past year (12 months) leads to an increase in total health care expenditure and health care utilization. In particular, with a 1 µg/m3 increase in average PM2.5 concentrations, total health care spending would rise by 5.1% and the probability of health care utilization would rise by 0.98% point. The increases are mainly driven by changes in hospital care and preventive care costs. Our mechanism evidence suggests that air pollution might aﬀect health care expenditure by increasing weight and the probability of getting sick while reducing sleep time and the chances of walking to work.
Journal: Applied Economics
Pages: 7111-7126
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206105
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206105
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:60:p:7111-7126



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186354_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongmei Shan
Author-X-Name-First: Hongmei
Author-X-Name-Last: Shan
Author-Name: Dongfang Bai
Author-X-Name-First: Dongfang
Author-X-Name-Last: Bai
Author-Name: Xinmeng Fan
Author-X-Name-First: Xinmeng
Author-X-Name-Last: Fan
Author-Name: Jing Shi
Author-X-Name-First: Jing
Author-X-Name-Last: Shi
Author-Name: Ying Li
Author-X-Name-First: Ying
Author-X-Name-Last: Li
Author-Name: Shuhan Yang
Author-X-Name-First: Shuhan
Author-X-Name-Last: Yang
Title: Enabling roles of integration and resilience for sustainable supply Chain performance: an empirical study on China’s E-commerce platforms
Abstract: 
 With the rapid expansion of platform-oriented business models, the sustainability of e-commerce platforms which integrate and match the upstream supplies and downstream demands has become increasingly important. This paper studies the enabling roles of integration and resilience on sustainable supply chain performance (SSCP) of e-commerce platforms in China. A comprehensive survey for supply chain professionals from various e-commerce platforms is conducted, and 227 valid responses are obtained. Based on the structural equation modelling (SEM) approach, the findings suggest that: (1) supplier integration (SI), internal integration (II) and customer integration (CI) all actively promote supply chain resilience (SCR); (2) supplier integration (SI) and internal integration (II) directly promote SSCP, and customer integration (CI) hardly directly affect SSCP. However, II mediates the relationship between SI, CI and SSCP, and the positive role of CI on SSCP can be achieved through the mediating effect of II; (3) SCR directly promotes SSCP, while it also mediates the association among SSCI and SSCP. The results provide insights on how to differentiate the impacts of SI, CI, II and the role of SCR on SSCP.
Journal: Applied Economics
Pages: 7079-7093
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2186354
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186354
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:60:p:7079-7093



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166665_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: JaeYeon Sim
Author-X-Name-First: JaeYeon
Author-X-Name-Last: Sim
Author-Name: Kyungmyung Jang
Author-X-Name-First: Kyungmyung
Author-X-Name-Last: Jang
Title: Blockchain innovation and firm’s financial performance: patent analysis based on firm-level information
Abstract: 
 This research makes an initial attempt to analyse the effects of blockchain patents on a firm’s financial performance. Blockchain technology has received increased attention since bitcoin prices skyrocketed in 2016, and applications for blockchain patents rapidly increased thereafter. Prior studies have documented that blockchain innovation could add economic value to firms, but without robust empirical analyses. Therefore, this study provides the first empirical approach to determine the effect of blockchain patents on a firm’s financial performance. We find that a firm’s blockchain patents are positively associated with firm value and firm performance. Moreover, the association between a firm’s blockchain patents and firm value or performance is more pronounced in markets with higher competition. This study provides theoretical and practical implications. The empirical results of this study lend credence to the argument that blockchain patent contributes to real value creation. We also add to blockchain literature and extend the literature discussing environmental uncertainty. Moreover, this study suggests useful insights for firms that consider developing blockchain patents and implies the signalling effect of blockchain patent in the capital market.
Journal: Applied Economics
Pages: 7178-7193
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166665
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166665
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:60:p:7178-7193



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206106_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Thi Thuy Anh Vo
Author-X-Name-First: Thi Thuy Anh
Author-X-Name-Last: Vo
Author-Name: Thi Nam Thanh Nguyen
Author-X-Name-First: Thi Nam Thanh
Author-X-Name-Last: Nguyen
Author-Name: Darren Henry
Author-X-Name-First: Darren
Author-X-Name-Last: Henry
Author-Name: Manh Toan Nguyen
Author-X-Name-First: Manh
Author-X-Name-Last: Toan Nguyen
Author-Name: Nathan Lael Joseph
Author-X-Name-First: Nathan Lael
Author-X-Name-Last: Joseph
Title: Does female leadership matter in firm risk-taking and performance? Evidence from gender equality reforms in an emerging market
Abstract: 
 Our article examines the impact of board gender diversity and female leadership on firm risk-taking and firm performance in Vietnam under the implementation of the National Strategy on Gender Equality. We find that female CEOs are associated with lower firm risk-taking and an increase in firm accounting returns is attributed to a transition from male to female CEOs. Further, board gender diversity is independently identified to lower firm risk-taking and female leadership (i.e. female CEOs and chairwomen) generates higher accounting profit (measured by ROA) for their businesses under this reform agenda.
Journal: Applied Economics
Pages: 7127-7149
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206106
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206106
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:55:y:2023:i:60:p:7127-7149

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166668_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xinyuan Ren
Author-X-Name-First: Xinyuan
Author-X-Name-Last: Ren
Author-Name: Zhixin Liu
Author-X-Name-First: Zhixin
Author-X-Name-Last: Liu
Author-Name: Hao Jin
Author-X-Name-First: Hao
Author-X-Name-Last: Jin
Title: Fiscal consolidation in China: a dynamic computable general equilibrium analysis
Abstract: 
 Inflation and overcapacity caused by fiscal expansion have begun to plague China’s economy. The surge in public debt caused by the perennial high deficit rate has led to accumulated debt risk. The lessons of the European debt crisis have forced China to re-examine its debt sustainability. A larger and more systematic fiscal consolidation is urgent. Based on China’s multiple fiscal accounts, this paper constructs a dynamic computable general equilibrium (CGE) model suitable for China’s scenario. By simulation, we evaluated the economic effects of revenue-based and spending-based fiscal consolidation and mixed consolidation and drew the following conclusions: (1) The success of fiscal consolidation requires paying a certain economic price. The industrial sectors closely related to the government bear more pressure from consolidation, which makes spending-based consolidation measures more advantageous in terms of cost because of their lower negative externalities. (2) China’s social security system has mitigated the effect on households during periods of fiscal consolidation, but the social insurance fund bears greater losses. (3) The mixed strategy of combining revenue and spending balance the contradiction between economic development and industrial structure in consolidation. While protecting the industrial structure, this strategy can complete the consolidation goal at a small economic cost.
Journal: Applied Economics
Pages: 59-80
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166668
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166668
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:1:p:59-80



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166666_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Michael Benjamin Goodwin
Author-X-Name-First: Michael Benjamin
Author-X-Name-Last: Goodwin
Author-Name: Fidel Gonzalez
Author-X-Name-First: Fidel
Author-X-Name-Last: Gonzalez
Author-Name: Matías Fontenla
Author-X-Name-First: Matías
Author-X-Name-Last: Fontenla
Title: The impact of daylight saving time in Mexico
Abstract: 
 We analyse the effect of Daylight Saving Time (DST) on automobile, acute myocardial infarctions (AMI) and crime-related fatalities in Mexico from 1998 to 2018. We rely on a regression discontinuity approach to obtain the causal impact of DST on these three causes of mortality. We find an increase in automobile fatalities of 13% −14% during the fall and spring transitions. Automobile fatalities increase 27% in urban areas during the fall transition and 18% in rural areas for spring. Crime-related fatalities increase 16% for the whole country, 13% in urban areas and 16% in rural areas in the fall transition and 2% in rural areas in the spring transition. The only impact on AMI fatalities that we find is a small increase in urban areas during the spring transition. In general, our results estimate an increase of about 100 more deaths per year due to DST, which translates into a monetary cost of about $22 million U.S. dollars per year.
Journal: Applied Economics
Pages: 22-32
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166666
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166666
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:1:p:22-32



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166667_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Daniela Balutel
Author-X-Name-First: Daniela
Author-X-Name-Last: Balutel
Author-Name: Marie-Hélène Felt
Author-X-Name-First: Marie-Hélène
Author-X-Name-Last: Felt
Author-Name: Gradon Nicholls
Author-X-Name-First: Gradon
Author-X-Name-Last: Nicholls
Author-Name: Marcel-Cristian Voia
Author-X-Name-First: Marcel-Cristian
Author-X-Name-Last: Voia
Title: Bitcoin awareness, ownership and use: 2016–20
Abstract: 
 Since 2016, the Bank of Canada has conducted annual surveys to monitor awareness, adoption and usage of Bitcoin and other cryptocurrencies. This report incorporates results from the 2019 Bitcoin Omnibus Survey and the November 2020 Cash Alternative Survey. We find that between 2018 and 2020, the level of Bitcoin awareness and ownership among Canadians remained stable: nearly 90% of the population were aware of Bitcoin, while only 5% owned it. We find that about half of Bitcoin owners stated they usually obtained their bitcoins through mobile or web exchanges, while one-fifth used mining. Bitcoin owners were susceptible to certain risks, as evidenced by the fact that about half of current and past owners stated they had been affected by events such as price crashes, losing access to funds, scams or data breaches. The most commonly cited reasons for owning Bitcoin were related to its use for investment or based on interest in the technology. Bitcoin owners displayed greater knowledge about the Bitcoin network than nonowners, yet they scored lower on questions testing financial literacy.
Journal: Applied Economics
Pages: 33-58
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166667
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166667
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:1:p:33-58



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166673_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jungwon Yeo
Author-X-Name-First: Jungwon
Author-X-Name-Last: Yeo
Title: An empirical analysis of shopping basket similarities across consumers
Abstract: 
 What makes shopping baskets similar or different across consumers and how much of shopping basket similarities is explained by similarities in observable characteristics, especially when a typical basket includes a few hundred products as a result of the consumer’s purchase decisions over tens of thousands of products? I attempt to answer these questions by expressing the entirety of households’ baskets as a vector of expenditure shares on various grocery products and computing pairwise cosine similarities. I find households’ shopping baskets vary greatly, with similarities in the demographic profiles and where they shop explaining only about 13%-16% of their similarities. The similarity in where households shop has the largest explanatory power, orders of magnitude larger than similarities in demographic profiles such as income and race. It underlines the importance of similarities in the products offered to households in explaining similarities in the products they ultimately purchase.
Journal: Applied Economics
Pages: 98-116
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166673
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166673
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:1:p:98-116



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2273236_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pengfei Chu
Author-X-Name-First: Pengfei
Author-X-Name-Last: Chu
Author-Name: Guanxia Xie
Author-X-Name-First: Guanxia
Author-X-Name-Last: Xie
Author-Name: Yuxia Zhang
Author-X-Name-First: Yuxia
Author-X-Name-Last: Zhang
Title: Anti-corruption publicity and internal migrants in China
Abstract: 
 This study uses the conditional logit model to explore the impact of anti-corruption publicity on the probability of choosing a specific city among internal migrants in China. By leveraging China’s Corruption Investigations Dataset and China Migrants Dynamic Survey, we find that anti-corruption publicity significantly decreases the probability of migrants choosing the city. The effects are driven by the mechanism whereby anti-corruption publicity increases the individuals’ perceptions of corruption and reduces their trust in local government officials. The negative effects remain after the migrants move to the city. Exposure to anti-corruption publicity is associated with decreased settlement intention and social health insurance participation. Our findings strongly indicate the necessity for the government to reconsider its communication strategies concerning anti-corruption efforts.
Journal: Applied Economics
Pages: 117-131
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2273236
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2273236
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:1:p:117-131



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166669_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Takahiro Ishii
Author-X-Name-First: Takahiro
Author-X-Name-Last: Ishii
Title: Technology sharing incentives for monopolistic firms
Abstract: 
 The present study theoretically examines the effects of free technology sharing by a monopolistic final-goods firm with other final-goods firms. I consider two cases: first, where there exists one final-goods firm in the final-goods market and second, where there exist two final-goods firms in the final-goods market. Given the free entry of firms into the differentiated intermediate-goods market, the results show that when another firm enters the final-goods market and transforms it into a two-firm oligopoly, cost efficiency improves because of an increase in the number of intermediate-goods firms. Furthermore, there is a possibility that the incumbent firm’s profits increase not only for a two-firm oligopoly, but also for an oligopoly with three or more firms. Thus, this study concludes that free technology sharing can improve incumbent firms’ profits. When the impact of an increased number of firms entering the intermediate-goods sector on the final good’s unit cost is high, free technology sharing benefits incumbent firms’ profits. While some prior studies show the potential for firms to increase their profits through licencing and the provision of technology, this study considers that technology is shared free of charge in an economy where the number of differentiated intermediate-goods firms is endogenously determined.
Journal: Applied Economics
Pages: 81-97
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166669
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166669
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:1:p:81-97



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2267821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jayadevan CM
Author-X-Name-First: Jayadevan
Author-X-Name-Last: CM
Author-Name: Nam Trung Hoang
Author-X-Name-First: Nam Trung
Author-X-Name-Last: Hoang
Author-Name: Subba Reddy Yarram
Author-X-Name-First: Subba Reddy
Author-X-Name-Last: Yarram
Title: The transition from middle-income trap: role of innovation and economic globalisation
Abstract: 
 The primary objective of this paper is to examine the impact of innovation and economic globalization on economic growth and the transition from the middle-income trap. The study analyses the impact of innovation and economic globalization on economic growth using the Bayesian model averaging (BMA) and the generalized method of moments (GMM). For the first time, this paper employs Cox regressions to estimate the transition speed from the middle-income trap. With the help of the extended Cox regression analysis, the study shows that mean years of education, life-insurance and non-life insurance premiums significantly increased the transition speed to high-income and thus reduced the transition duration. The important innovation variables like labour productivity, internet usage and scientific journal articles count also increased the transition speed and reduced the transition duration. The time-dependent covariates of trade openness, foreign direct investment, high-technology exports, health spending, urbanization, and life insurance premiums also increased the transition speed and thus reduced the transition duration. The research indicates that breaking free from the middle-income trap may not require a surge in patent numbers. The present paper provides some directions to achieve better economic growth and escape the middle-income trap.
Journal: Applied Economics
Pages: 1-21
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2267821
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2267821
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:1:p:1-21

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammadu Theseem Musthafa
Author-X-Name-First: Muhammadu Theseem
Author-X-Name-Last: Musthafa
Author-Name: Thanh Le
Author-X-Name-First: Thanh
Author-X-Name-Last: Le
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Title: Monetary policy transmission in Sri Lanka
Abstract: 
 Sri Lanka’s monetary policy has evolved differently during and after a three-decade-long ethnic conflict. This paper empirically investigates effects of monetary policy shocks on Sri Lankan economy with particular focus on the strength of credit and exchange rate channels using a VAR model for 2003–2019 period. We find that: (i) monetary policy shocks have a significant and persistent impact on key macroeconomic variables even though several puzzling results emerge; (ii) the effects of monetary policy shocks are significant and more persistent in the post-conflict period than in the conflict period; (iii) a tight monetary policy effectively contains inflation in the post-conflict period; and (iv) interest rate and exchange rate channels play a dominant role while the credit channel responds with some lags in the post-conflict period.
Journal: Applied Economics
Pages: 151-168
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166671
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166671
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:151-168



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2275222_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qin Xiao
Author-X-Name-First: Qin
Author-X-Name-Last: Xiao
Author-Name: Ye Deng
Author-X-Name-First: Ye
Author-X-Name-Last: Deng
Author-Name: Chunping Zhong
Author-X-Name-First: Chunping
Author-X-Name-Last: Zhong
Author-Name: Mengjiao Wang
Author-X-Name-First: Mengjiao
Author-X-Name-Last: Wang
Author-Name: Yuechuan Zhao
Author-X-Name-First: Yuechuan
Author-X-Name-Last: Zhao
Title: Direct or indirect subsidies? Optimal childcare subsidy and application to China
Abstract: 
 This paper examines the optimal design of childcare subsidies and how subsidies are implemented. We combine the optimal subsidy model with the situation in China and construct the optimal childcare subsidy model using families as units. We discuss the selection patterns of direct and indirect subsidies and prove the applicable ranges and selection thresholds for different subsidy types. Based on the CFPS database in China, we simulate the amount of childcare subsidies for families with different levels of market productivity and calculate the optimal amount of subsidies for them. The results show that direct subsidies should be provided to families whose wages are lower than the market price of childcare. Indirect subsidies should be provided to families whose wages are above the market price for childcare. Finally, the optimal child-rearing subsidy curve is derived, and the easily identifiable macro optimal subsidy curve is designed for implementation.
Journal: Applied Economics
Pages: 233-248
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2275222
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2275222
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:233-248



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166896_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Sangram Keshari Jena
Author-X-Name-First: Sangram Keshari
Author-X-Name-Last: Jena
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Does the dynamics between government bond and equity markets validate the adaptive market hypothesis? evidence from transfer entropy
Abstract: 
 The study applies the effective transfer entropy (ETE) and Renyi transfer entropy (RTE) to quantify the information flow between government bonds and equity market of G7 countries. The magnitude and direction of information flow between these two markets are dynamic across the state of the markets and time thus confirming their adaptiveness to the evolution of cross-market information flow under different market conditions over time. Although information flow from the equity dominates the flow from the bond market, it is dynamic over the time and state of the markets. However, during the period of market turbulence, the bond dominates the equity market. This study is the first of its kind to validate the adaptive market hypothesis using the novel transfer entropy framework in the bond and equity market.
Journal: Applied Economics
Pages: 186-201
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166896
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166896
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:186-201



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Constant L. Yayi
Author-X-Name-First: Constant L.
Author-X-Name-Last: Yayi
Title: Economic policy uncertainty and trade: does export sophistication matter?
Abstract: 
 In spite of the recent surge of research interest on the economic effect of policy uncertainties, trade behaviour during times of policy uncertainties is still not fully understood. We use the trade gravity model to examine the effects of economic policy uncertainty (EPU) on the trade of 22 countries over the period 1997–2020, based on the argument that EPU inflates bilateral trade costs. Overall, our results indicate that bilateral trade, exports, and imports are all negatively and significantly affected by both domestic and foreign policy uncertainties. Moreover, we document substantial heterogeneous trade reactions to policy uncertainties across countries. Specifically, in more export-sophisticated countries, our results show that only foreign policy uncertainty has a significant and negative effect on trade; whereas in less export-sophisticated countries, trade is significantly and negatively affected by both domestic and foreign EPU. These findings point to the double vulnerability of less export-sophisticated countries to domestic and foreign policy uncertainties and, to the resiliency of more export-sophisticated countries to domestic policy uncertainties and to their vulnerability to foreign policy uncertainties.
Journal: Applied Economics
Pages: 169-185
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166672
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166672
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:169-185



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167917_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Patrick Schembri
Author-X-Name-First: Patrick
Author-X-Name-Last: Schembri
Author-Name: Huijie Yan
Author-X-Name-First: Huijie
Author-X-Name-Last: Yan
Author-Name: Katia Radja
Author-X-Name-First: Katia
Author-X-Name-Last: Radja
Title: Does disaggregated renewable energy stimulate economic growth? The role of spatial effect
Abstract: 
 This study attempts to empirically investigate the validity of energy-led growth hypothesis for renewable energy sources for developing countries. To this end, this paper estimates the impacts of disaggregated renewable energy sources on economic growth within a multivariate framework including the disaggregated non-renewable energy sources, capital, labour, institutional quality and human capital by using panel data of 32 lower/upper middle income countries over the period 2009 to 2019 and applying spatial dynamic techniques. Our results show the significantly positive impacts of individual renewable sources on economic growth. This study provides the first piece of evidence of spatial spillover effects from renewable energy on economic growth for developing countries. Our analysis reveals the significantly negative impacts of hydroelectricity on economic growth. Our analysis also confirms the importance of labour, institutional quality and human capital in driving economic growth.
Journal: Applied Economics
Pages: 213-232
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167917
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167917
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:213-232



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167916_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christopher John Cruz
Author-X-Name-First: Christopher John
Author-X-Name-Last: Cruz
Author-Name: Sonia Dalmia
Author-X-Name-First: Sonia
Author-X-Name-Last: Dalmia
Author-Name: Manuel Pulido-Velásquez
Author-X-Name-First: Manuel
Author-X-Name-Last: Pulido-Velásquez
Title: Race and teaching evaluations: evidence from the covid-19 pandemic
Abstract: 
 While faculty of colour tend to receive lower course evaluations, it is unclear whether the lack of face-to-face interaction during the COVID-19 pandemic affected them differently. We examine this question using course-level data from a large US university. Estimates from our difference-in-differences models show that non-white faculty suffered a larger decline in ratings compared to their white peers, with the effect persisting even after controlling for English as the faculty’s second language. These findings contribute in furthering the discussion on how universities value course evaluations to measure teaching effectiveness and allocate faculty resources.
Journal: Applied Economics
Pages: 202-212
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167916
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167916
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:202-212



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2166670_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chih-Hai Yang
Author-X-Name-First: Chih-Hai
Author-X-Name-Last: Yang
Author-Name: Meng-Wen Tsou
Author-X-Name-First: Meng-Wen
Author-X-Name-Last: Tsou
Title: Evolution of technical efficiency in Chinese coal mining firms: the roles of competition and technology
Abstract: 
 This study examines the evolution of technical efficiency (TE) and its determinants in China’s high-pollution coal mining industry. The effects of market competition, technology, and pollution abatement expenditure (PAE) on inefficiency are investigated. Using a firm-level panel dataset for the 2001–2013 period, estimation using a panel stochastic frontier model shows that the average TE was stable with a small fluctuation in the 2000s and then deteriorated in the 2010s. The majority of private entrants have lower TE than the main group of incumbents, state-owned enterprises, whereas foreign firms exhibit the highest TE among firms. We find that capital imports, research and development, and government subsidies are important factors in reducing technical inefficiency, highlighting the importance of technological activity on production efficiency. Further analysis of the relationship between PAE and TE reveals that PAE positively contributes to the efficiency of coal mining firms. Robustness checks ensure the aforementioned findings.
Journal: Applied Economics
Pages: 133-150
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166670
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166670
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:133-150

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167926_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Oluwasegun Babatunde Adekoya
Author-X-Name-First: Oluwasegun Babatunde
Author-X-Name-Last: Adekoya
Author-Name: Johnson Ayobami Oliyide
Author-X-Name-First: Johnson Ayobami
Author-X-Name-Last: Oliyide
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Title: The spillover of media sentiment on the sukuk bonds during COVID-19 pandemic
Abstract: 
 This study focuses on the examination of the spillover impact of media sentiments (media coverage index, MCI), on the returns and volatility of the different investment graded sukuk bonds during the COVID-19 pandemic using the Time-varying Parameter Vector Autoregressive (TVP-VAR) model. We find that media sentiments have a stronger spillover impact on the bonds’ returns than their volatilities. The impacts are also found to be higher around the first few months of 2020 and 2021. The lower investment grade sukuk bonds are net transmitters of spillovers to their higher investment grade sukuk bonds counterparts. Sukuk bond BBB becomes a net recipient of spillovers and its net directional spillover relationship with sukuk bond AAA becomes zero. The spillover relationship is generally time-varying, with exceptional spillovers occurring during the early periods of the outbreak of the pandemic and the rise of its second wave.
Journal: Applied Economics
Pages: 360-374
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167926
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167926
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:360-374



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167918_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Petra Adelajda Zaninovic
Author-X-Name-First: Petra Adelajda
Author-X-Name-Last: Zaninovic
Author-Name: Katja Zajc Kejzar
Author-X-Name-First: Katja
Author-X-Name-Last: Zajc Kejzar
Author-Name: Helga Pavlic Skender
Author-X-Name-First: Helga
Author-X-Name-Last: Pavlic Skender
Title: Assessing the effects of hard and soft infrastructure on traditional vs supply-chain trade: the case of Central and Eastern EU member states (CEMS)
Abstract: 
 The aim of this paper is to assess the role of hard and soft infrastructure in trade, distinguishing between traditional trade and supply-chain trade. Using factor analysis, we construct four aggregate trade facilitation indicators where we measure hard infrastructure as physical and ICT infrastructure, while soft infrastructure accounts for border efficiency and institutional efficiency. For traditional trade, we use bilateral trade data from UN Comtrade. Supply-chain trade is measured in terms of domestic value-added (DVAFX) embodied in foreign gross exports and foreign value-added (FVA) embodied in domestic gross exports obtained from Eora MRIO database. We use panel data regression analysis with an empirical model specification based on a gravity model and covering the 2000–2019 period. We estimate model with the Poisson Pseudo-Maximum Likelihood Estimator (PPML). To control multilateral trade-resistance terms (MRT), we included reporter and partner fixed effects along with country pair fixed effects. The results confirm a statistically significant relationship between hard and soft infrastructure and trade. ICT and border efficiency have the strongest impact on both types of trade. Supply-chain trade responds most intensely to improvements in institutional efficiency. Results imply that ICT infrastructure and border efficiency might hold even greater importance for CEMS’s traditional and supply-chain trade.
Journal: Applied Economics
Pages: 249-264
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167918
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167918
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:249-264



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167924_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Josep Amer-Mestre
Author-X-Name-First: Josep
Author-X-Name-Last: Amer-Mestre
Author-Name: Alaitz Ayarza-Astigarraga
Author-X-Name-First: Alaitz
Author-X-Name-Last: Ayarza-Astigarraga
Author-Name: Marta C. Lopes
Author-X-Name-First: Marta C.
Author-X-Name-Last: Lopes
Title: E-learning engagement gap during school closures: differences by academic performance
Abstract: 
 We study the impact of COVID-19 school closures on differences in online learning usage by regional academic performance. Using data from Google Trends in Italy, we find that during the first lockdown, regions with a previously lower academic performance increased their searches for e-learning tools more than higher-performing regions. Analysing school administrative and survey data before the pandemic, we find that both teachers and students in lower performing regions were using no less e-learning tools than higher performing ones. These two findings suggest that the COVID-19 shock widened the e-learning usage gap between academically lower and higher-performing regions. Exploiting the regional variation in school closure mandates during the 2020–2021 academic year, we report that the patterns detected after the first lockdown were no longer present. Regions with different previous academic performance had the same response in terms of online learning usage when faced with stricter school closures.
Journal: Applied Economics
Pages: 337-359
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167924
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167924
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:337-359



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167923_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: James W. Kolari
Author-X-Name-First: James W.
Author-X-Name-Last: Kolari
Author-Name: Sang-Ook Shin
Author-X-Name-First: Sang-Ook
Author-X-Name-Last: Shin
Title: Momentum and reversal: information from prior returns
Abstract: 
 This paper studies the joint dynamics of momentum and reversal strategies. Momentum investors face uncertainty about whether past patterns of price movements will continue (momentum) or turn over (reversal), thereby increasing volatility of momentum returns and occasionally leading to momentum crashes. We argue that the forces driving reversal over momentum tend to be strong if losers’ past returns are extremely low (in the time-series) or if losers are small and illiquid (in the cross-section). We subsequently propose new risk-managed momentum strategies by taking into account behavioural divergence between momentum and reversal in an effort to boost momentum profits and reduce volatility. Empirical tests for the U.S. stock market in the sample period of 1947 to 2015 document that momentum strategies in which investors implement stop-trading rules if losers’ past returns are extremely low as well as buy-small-loser rules substantially outperform traditional momentum strategies. International stock markets and robustness checks confirm our U.S. tests. Importantly, we find that outperformance is mainly attributable to the increase in abnormal returns (i.e. alpha) from various factor models.
Journal: Applied Economics
Pages: 318-336
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167923
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167923
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:318-336



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167919_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chu-Yu Guo
Author-X-Name-First: Chu-Yu
Author-X-Name-Last: Guo
Author-Name: Jiandong Wen
Author-X-Name-First: Jiandong
Author-X-Name-Last: Wen
Author-Name: Hui Hu
Author-X-Name-First: Hui
Author-X-Name-Last: Hu
Author-Name: Michael C. De Domenici
Author-X-Name-First: Michael C.
Author-X-Name-Last: De Domenici
Title: New insights into trends and reasons for the gender pay gap in Urban China, 1988-2013
Abstract: 
 This study documents long-run trends of the gender pay gap (GPG) in urban China 1988–2013 using the Chinese Household Income Project microdata. We find a fluctuating and enlarging GPG over time. The average ratio of female to male earnings fell from 85.2% to 79.9%. Analysis by earnings percentiles shows that the GPG is larger at the bottom of the earnings distribution than it is at the top. We utilize OLS regressions, Blinder-Oaxaca decomposition, and Juhn-Murphy-Pierce decomposition to make a comprehensive analysis of the contributing factors to the GPG. By 2013, conventional human capital variables explained little of the GPG. Gender differences in location (ownership, occupation, and industry) were important, although the magnitude of the effect of three factors has changed over time. Gender differences in job characteristics (contract type and firm size) are also important in explaining the GPG. The increases in the unexplained gap contributed to the divergence of the gender gap. Analysis by sub-periods shows that there were distinctive patterns behind the changes of the GPG. The main contributors to the diverging trend of the GPG were changes in the wage structure to women and women’s disadvantages in unobserved skills.
Journal: Applied Economics
Pages: 265-285
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167919
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167919
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:265-285



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167922_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: James R. Barth
Author-X-Name-First: James R.
Author-X-Name-Last: Barth
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Jiayi Xu
Author-X-Name-First: Jiayi
Author-X-Name-Last: Xu
Title: Do minority banks perform better or worse than non-minority banks?
Abstract: 
 We investigate whether Minority Owned/ControlledBanks (MDIs) perform better or worse than Non-Minority Banks (NMDIs) in terms of lower profit rates and higher risk. MDIs and NMDIs are compared using a propensity score matching (PSM) methodology. We also compare the performance when their headquarters are in the same census tract. In contrast to previous and earlier studies, the empirical results indicate that MDIs exhibit no signs of under- or over-performance vis-à-vis NMDIs. Moreover, we find no statistically significant difference between the four sub-categories of MDIs (Black, Asian, Hispanic, and Native American) and NMDIs regarding either profitability or riskiness. Robustness checks using zip code and city-level data effectively confirm these results.
Journal: Applied Economics
Pages: 301-317
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167922
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167922
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:301-317



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167921_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: Mohd Ziaur Rehman
Author-X-Name-First: Mohd Ziaur
Author-X-Name-Last: Rehman
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Title: Quantile dependence of Bitcoin with clean and renewable energy stocks: new global evidence
Abstract: 
 This paper examines the time-varying spillover effects and connectedness of the Bitcoin price with clean and renewable energy stocks using the quantile VAR framework. We use daily price indices spanning from 1 January 2014, to 18 October 2022. Before probing the quantile spillover effects between the markets examined, we first examine the mean-based averaged connectedness. These results indicate that Bitcoin receives more shocks from markets in the system than it transmits. Additionally, Bitcoin emerges as a net receiver of return shocks with index evolution among the markets examined, driven mainly by own shocks. Shifting to the results obtained using the QVAR approach, evidence reveals that Bitcoin acts as a net recipient of shocks under different quantiles in the system. In addition, Bitcoin returns strongly correlate with renewable energy stock returns under extreme events. We also confirm the dominance of renewable energy markets over Bitcoin and that the magnitude of their connectedness is time and event dependent. These findings confirm the diversification potential and safe-haven properties of Bitcoin for portfolio investors.
Journal: Applied Economics
Pages: 286-300
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167921
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167921
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:286-300

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167928_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongyun Zheng
Author-X-Name-First: Hongyun
Author-X-Name-Last: Zheng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Title: Economic benefits of internet use for smallholder wheat farmers
Abstract: 
 This study analyses the economic benefits of Internet use, focusing on farm profit, risk exposure (skewness), and cost of risk. We use the flexible moment-based production function to derive the risk exposure indicator and the endogenous switching regression model to account for the self-selection bias. A quantile-based approach is also employed to estimate the influence of Internet use on the cost of risk. Analysing the household-level data surveyed from 558 wheat farmers in China, we find that Internet use significantly increases farm profit by 8% and reduces risk exposure by 102%. The profit-increasing effect of Internet use is achieved mainly because Internet use increases gross revenue and wheat yields but reduces production costs. Internet use also decreases the cost of risk associated with wheat production. Our findings highlight that Internet use could be an anti-risk strategy for smallholder farmers to boost farm performance and mitigate production risk and crop failure.
Journal: Applied Economics
Pages: 398-413
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167928
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167928
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:398-413



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2168610_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoxiao Zhou
Author-X-Name-First: Xiaoxiao
Author-X-Name-Last: Zhou
Author-Name: Hua Zhang
Author-X-Name-First: Hua
Author-X-Name-Last: Zhang
Title: Does financial development benefit carbon neutrality in China? Pathway analysis and empirical study
Abstract: 
 Financial development (FD) is pioneered to solve the problem of vital capital supporting for carbon neutrality. Detecting the effect of FD on carbon emissions (CE) plays an important role in accurately planning FD, and guiding carbon neutrality in China. To clarify the influence of FD on CE and the underlying pathways concerning scale effect, structural effect, and technological effect, this paper use China’s 285 city-level data spanning 2003–2016 and fixed effect (FE) models and instrumental variable (IV) methods to test the effect of FD on carbon neutrality in China. The findings show that (1) the development of financial deepening, financial interrelation ratio, and financial intermediary all prompt carbon emissions at the national level. (2) Regional heterogeneity indicates that FD benefits carbon neutrality in mid-Western cities but fails in eastern cities. (3) FD increases carbon emissions by boosting electricity consumption but decreases carbon emissions by promoting structural optimization and technological progress. (4) Environmental regulations partially curb the carbon emissions effect of FD. This paper proposes some suggestions to reduce CE and gain carbon neutrality in China by greening FD, optimizing industrial structure, promoting technological innovation and strengthening environmental regulation.
Journal: Applied Economics
Pages: 440-461
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168610
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168610
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:440-461



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2168612_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Oumar Diallo
Author-X-Name-First: Oumar
Author-X-Name-Last: Diallo
Author-Name: Steve Loris Gui-Diby
Author-X-Name-First: Steve Loris
Author-X-Name-Last: Gui-Diby
Author-Name: Patrick A. Imam
Author-X-Name-First: Patrick A.
Author-X-Name-Last: Imam
Title: Do monetary policy outcomes promote stability in fragile settings?
Abstract: 
 This paper assesses how monetary policy outcomes affect fragility. Diving into the universe of the most prominent combinations of pursued monetary policy objectives across fragile settings, we examine the relationships between monetary policy and fragility, and find the combination of reduction of inflation and lower unemployment to be the one that delivers the highest payoff in terms of promoting peace and cohesion. Setting aside the challenges of monetary policy transmission, results from our analysis broadly confirm the above ‘winning’ combination, with low inflation as a primary desired outcome and low unemployment rate as a secondary one. We also carry out a series of robustness tests, which confirm our findings. Overall, our results lend credence to the importance of paying attention – in the context of reducing fragility – to monetary policy outcomes.
Journal: Applied Economics
Pages: 483-499
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168612
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168612
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:483-499



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2168608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Akihiro Omura
Author-X-Name-First: Akihiro
Author-X-Name-Last: Omura
Author-Name: Adrian (Wai Kong) Cheung
Author-X-Name-First: Adrian (Wai Kong)
Author-X-Name-Last: Cheung
Author-Name: Jen Je Su
Author-X-Name-First: Jen Je
Author-X-Name-Last: Su
Title: Does natural gas volatility affect Bitcoin volatility? Evidence from the HAR-RV model
Abstract: 
 While volatility spillover is a vital research area in financial economics (due to its importance for risk valuation and portfolio diversification strategies), the volatility linkage between Bitcoin and electricity/energy markets has not received adequate attention. As the Bitcoin mining cost comes mainly from electricity (which is highly dependent on natural gas), we hypothesize that natural gas is a non-trivial Bitcoin price volatility driver and aim to test if this is the case. Specifically, we employ a widely used model called the HAR-RV model to assess volatility spillover across Bitcoin and natural gas using high-frequency data. We find a spillover effect from natural gas to Bitcoin, and the positive (negative) component of natural gas volatility stabilizes (destabilizes) Bitcoin volatility. The spillover effect is further examined and confirmed using an out-of-sample approach.
Journal: Applied Economics
Pages: 414-425
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168608
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168608
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:414-425



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2168609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Philomena M. Bacon
Author-X-Name-First: Philomena M.
Author-X-Name-Last: Bacon
Author-Name: Anna Conte
Author-X-Name-First: Anna
Author-X-Name-Last: Conte
Author-Name: Peter G. Moffatt
Author-X-Name-First: Peter G.
Author-X-Name-Last: Moffatt
Title: Gender and gambling preference
Abstract: 
 Gambling preferences are analysed using survey data from the wider population. Respondents were confronted with a hypothetical lottery question, in which they were asked to imagine having just won a large prize, and asked how much of this prize they would be willing to invest in a further gamble. We observe the majority of respondents avoiding the gamble altogether. We demonstrate that such behaviour cannot easily be explained by standard models of choice under risk, since it implies implausible degrees of risk aversion. We propose that the observed behaviour can instead be explained in terms of gambling aversion. Since the decision variable takes the form of the number of ‘units’ of the prize that the respondent wishes to invest in the gamble, and since the decision is observed twice for some respondents, we adopt the panel version of the Zero-Inflated Poisson model as an econometric framework. We assume that individual characteristics affect both stages of the decision-making process. We are particularly interested in the effect of gender, and we find that males have a significantly higher probability of participating in the gamble, and are also (conditional on gambling) prepared to gamble significantly larger amounts.
Journal: Applied Economics
Pages: 426-439
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168609
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168609
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:426-439



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2167927_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hiroaki Masuhara
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Masuhara
Author-Name: Kei Hosoya
Author-X-Name-First: Kei
Author-X-Name-Last: Hosoya
Title: Relationship among COVID-19, mobility, and food service vouchers in Japan
Abstract: 
 In 2020, the Japanese government launched the Go To Eat campaign, a policy initiative involving the distribution of vouchers to households for use at restaurants, with the aim of supporting the food service industry, which had experienced a significant decrease in sales due to the government’s ‘self-restraint request’ during the COVID-19 pandemic. This paper uses a nonparametric method to investigate the relationship between the Go To Eat campaign and the spread of COVID-19 in Japan by examining food service expenditures, mobility, positive polymerase chain reaction (PCR) tests, and the Indices of Industrial Production. The distribution of food service expenditures changed in October and November, when the campaign started, as well as in December, when the campaign ended. In addition, the distribution of mobility changed in January 2021, when a state of emergency was declared. The Go To Eat campaign was economically effective as a temporary subsidy, and it might have facilitated mobility in a way that was difficult to control for some time. As such, the indirect effect of the campaign on the rise in the number of positive PCR tests is undeniable.
Journal: Applied Economics
Pages: 375-397
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167927
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167927
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:375-397



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2168611_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fengxian Chen
Author-X-Name-First: Fengxian
Author-X-Name-Last: Chen
Author-Name: Tianruo Hao
Author-X-Name-First: Tianruo
Author-X-Name-Last: Hao
Title: The degree of RMB as an international anchor currency and its driving factors: an exchange rate perspective
Abstract: 
 This paper provides an alternative method to estimate the degree of RMB internationalization by combining the modified Frankel-Wei’s (1994, 2008) weight-inference technique and the state space model. Using a large sample of monthly exchange rate data of 54 economies, we estimate the dynamic currency weights of the U.S. dollar, Euro, RMB, Japanese yen and British pound. Results show that RMB has markedly increased since August 2015 as an international anchor currency, and then gradually decreased from June 2016 to December 2018. The currency weights ranked from highest to lowest are the U.S. dollar, Euro, RMB, British pound and Japanese yen for now. Furthermore, we also find that relative trade openness, capital account openness and exchange rate stability are the key drivers promoting the weight of the RMB. The above findings are robust to a battery of robustness tests. Our research contributes to the literature by providing a dynamic anchor currency weight estimation method and presenting a preliminary explanation for the changes of currency weight.
Journal: Applied Economics
Pages: 462-482
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168611
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168611
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:462-482

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2168613_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joshua K. Park
Author-X-Name-First: Joshua K.
Author-X-Name-Last: Park
Author-Name: Xiangcai Meng
Author-X-Name-First: Xiangcai
Author-X-Name-Last: Meng
Title: Oil price changes and aggregate economic fluctuations: new evidence from the Republic of Korea
Abstract: 
 The impact of oil price on the aggregate economy is an interesting topic which has been examined mainly in the time dimension, but relatively little exploration has been done to reveal how oil price influences inflation, industrial production, and unemployment across frequencies and over time. Employing a continuous wavelet approach, this study contributes to the literature by investigating the effects of oil price on aggregate economic activities in the time-frequency space with a monthly dataset from South Korea. The empirical results demonstrate that: First, the effect of oil price on inflation becomes stronger as moving from high frequencies between 2000 and 2005 to low frequencies between 2008 and 2018. Second, an increase in oil price is associated with a decrease in industrial production, and oil price movements could largely mirror industrial production fluctuations at the 64-month scale between 2011 and 2013 and at the 64-96-month scale between 2014 and 2021. Third, the impact of oil price on unemployment becomes weaker when moving from the 12-24-month scale between 2009 and 2012 to the 24-48-month scale between 2008 and 2016. Our results indicate that policymakers should consider these heterogeneous effects of oil price on the aggregate economy while developing stabilization policies.
Journal: Applied Economics
Pages: 501-519
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168613
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168613
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:501-519



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2168616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nathan Kettlewell
Author-X-Name-First: Nathan
Author-X-Name-Last: Kettlewell
Author-Name: Fruhling Rijsdijk
Author-X-Name-First: Fruhling
Author-X-Name-Last: Rijsdijk
Author-Name: Sisira Siribaddana
Author-X-Name-First: Sisira
Author-X-Name-Last: Siribaddana
Author-Name: Athula Sumathipala
Author-X-Name-First: Athula
Author-X-Name-Last: Sumathipala
Author-Name: Agnieszka Tymula
Author-X-Name-First: Agnieszka
Author-X-Name-Last: Tymula
Author-Name: Helena Zavos
Author-X-Name-First: Helena
Author-X-Name-Last: Zavos
Author-Name: Nicholas Glozier
Author-X-Name-First: Nicholas
Author-X-Name-Last: Glozier
Title: Natural disaster and risk preferences: evidence from Sri Lankan twins
Abstract: 
 We estimate whether risk preferences are affected by traumatic events by using a unique survey of Sri Lankan twins which contains information on individual’s exposure to the 2004 Indian Ocean Tsunami, validated measures of mental health and risk preferences, and a rich set of control variables. Our estimation strategy utilizes variation in experiences within twin pairs and allows us to explore wealth shocks and/or changes in mental health as mechanisms. We find that exposure to the tsunami lead to less risk aversion, a result that is not explained by mental health.
Journal: Applied Economics
Pages: 558-581
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168616
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168616
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:558-581



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2168614_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Brice Dupoyet
Author-X-Name-First: Brice
Author-X-Name-Last: Dupoyet
Author-Name: Xiaoquan Jiang
Author-X-Name-First: Xiaoquan
Author-X-Name-Last: Jiang
Author-Name: Qianying Zhang
Author-X-Name-First: Qianying
Author-X-Name-Last: Zhang
Title: A new take on the relationship between interest rates and credit spreads
Abstract: 
 We revisit the link between interest rates and corporate bond credit spreads by applying Rigobon’s (2003) unique heteroskedasticity-based identification methodology to their interconnected dynamics through a bivariate VAR system. This different approach allows us to account for simultaneity issues and use this framework to test the various possible explanations for the credit spread – interest rate relation that have been proposed by the literature over the years. We find that credit spreads do indeed respond negatively to interest rates, a result consistent with Merton’s (1974) structural model. This negative relation is robust to macroeconomic shocks, market uncertainty, business cycles, different sample periods, bond callability, and bond ratings. We also find the magnitude of the negative relation to be larger for high-yield bonds than for investment-grade bonds, and are able to rule out the option-like feature of callable bonds proposed by Duffee (1998) as the main driver of the negative nature of the relationship. These results have important portfolio and risk management implications.
Journal: Applied Economics
Pages: 520-536
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168614
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168614
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:520-536



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2169240_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Salaheddine El Omari
Author-X-Name-First: Salaheddine
Author-X-Name-Last: El Omari
Author-Name: Noureddine Benlagha
Author-X-Name-First: Noureddine
Author-X-Name-Last: Benlagha
Title: Accounting for inflation dynamic in a fully optimizing macroeconomic framework: evidence from the US states
Abstract: 
 This article proposes a New Keynesian DSGE model that can capture the hump-shaped response of inflation to a monetary policy shock that does not depend upon backward-looking elements for the price and wage-setting, such as the indexation of wages or prices. The two additional elements required to achieve a hump-shaped response are roundabout production structure (input–output structure for production) and working capital. Depending on the model’s parameterization, this channel can provide a pronounced response of inflation. In addition, our article provides some reduced-form evidence about the hump-shaped response of inflation using a VAR with Cholesky ordering.
Journal: Applied Economics
Pages: 582-598
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2169240
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169240
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:582-598



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2168615_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kai Zhao
Author-X-Name-First: Kai
Author-X-Name-Last: Zhao
Author-Name: Jinkai Zhao
Author-X-Name-First: Jinkai
Author-X-Name-Last: Zhao
Author-Name: Xiaoling Yuan
Author-X-Name-First: Xiaoling
Author-X-Name-Last: Yuan
Author-Name: Yonghong Jiang
Author-X-Name-First: Yonghong
Author-X-Name-Last: Jiang
Author-Name: Mengyuan Zhong
Author-X-Name-First: Mengyuan
Author-X-Name-Last: Zhong
Title: Identifying multidimensional effects of online reviews on consumers’ automobile purchase behaviours in China: linking observational learning with economic outcomes
Abstract: 
 Based on 1,087,248 individual online reviews for 2007–2020 collected from the websites of AutoHome and Sohu Auto using the Python method, rating, volume, variance, and many other characteristics of online reviews are generated for 808 automobile products sold in mainland China. Using the observational learning (OL) framework to establish the relationship between automotive consumers’ purchasing behaviours and the display of online reviews, the econometric results reveal that, at the aggregate level, automotive consumers seem to respond more significantly to the volume/variance of online reviews (i.e. hedonic cues) rather than the average rating (i.e. utilitarian cues) for producing adequate OL. However, at the sub-categorical level, consumers are more likely to produce adequate OL regarding ratings representing utilitarian attributes while effects of most of the variance (i.e. hedonic cues) are limited. These findings imply that consumers are more likely to perceive automobile products as ‘more hedonic and less utilitarian’, but an overly complicated online review system forces consumers to simplify the OL process that prioritizes utilitarian attributes, as hedonic information is difficult to be understood. This study provides theoretical and empirical insights about how consumers respond differently to various online review characteristics for products with no clear boundary in a hedonic/utilitarian distinction.
Journal: Applied Economics
Pages: 537-557
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168615
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168615
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:537-557



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2169242_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ping Zhang
Author-X-Name-First: Ping
Author-X-Name-Last: Zhang
Author-Name: Yiru Wang
Author-X-Name-First: Yiru
Author-X-Name-Last: Wang
Author-Name: Ruyan Wang
Author-X-Name-First: Ruyan
Author-X-Name-Last: Wang
Author-Name: Tewei Wang
Author-X-Name-First: Tewei
Author-X-Name-Last: Wang
Title: Digital finance and corporate innovation: evidence from China
Abstract: 
 In this paper, we investigate the impact of digital finance on corporate innovation based on Chinese A-share listed companies from 2011 to 2017. We find that digital finance has a significant promotion effect on corporate innovation. The development of digital finance promotes enterprise innovation, increasing the number of patent applications and authorizations. The development of digital finance mainly promotes corporate innovation through two channels. First, digital finance improves bank competition and credit availability to promote corporate innovation; second, digital finance reduces financing constraints and financing costs of enterprises to promote corporate innovation. We also conduct a rich set of robustness tests and obtain consistent conclusions.
Journal: Applied Economics
Pages: 615-638
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2169242
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169242
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:615-638



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2169241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Valeria Bucci
Author-X-Name-First: Valeria
Author-X-Name-Last: Bucci
Author-Name: Giancarlo Ferrara
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Ferrara
Author-Name: Giuliano Resce
Author-X-Name-First: Giuliano
Author-X-Name-Last: Resce
Title: Local government spending efficiency and fiscal decentralization: evidence from Italian municipalities
Abstract: 
 This article investigates the association between fiscal decentralization and municipality efficiency by conducting an empirical analysis focused on the Italian context. We conduct a cost-efficiency analysis based on a stochastic frontier approach with municipality and time fixed effects modelling the decentralization effect with a continuous variable, taxation autonomy, which allows for accounting for the degree and evolution of fiscal decentralization over time. The empirical analysis provides convincing evidence that fiscal decentralization is positively associated with municipalities’ efficiency. The positive effect is confirmed when additional controls are included into the model and persists to robustness checks. This evidence lends support for policies aimed at making more closely aligned expenditure and revenue decision-making.
Journal: Applied Economics
Pages: 599-614
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2169241
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169241
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:599-614

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174943_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jane Fry
Author-X-Name-First: Jane
Author-X-Name-Last: Fry
Author-Name: Meg Elkins
Author-X-Name-First: Meg
Author-X-Name-Last: Elkins
Author-Name: Lisa Farrell
Author-X-Name-First: Lisa
Author-X-Name-Last: Farrell
Title: Cognition and curiosity:Strategies for firms to recruit curious employees
Abstract: 
 Curiosity has long been touted as important for the ability to learn and has been linked with innovation and entrepreneurship. It is also important that employers know how to identify curious potential employees in cost-effective ways during recruitment processes. This paper explores the association between curiosity and cognitive ability. Recruitment processes rely heavily on educational attainment, especially when recruiting young people with low labour market experience. This paper explores the association between curiosity and maths, science, and reading ability in youth. Using six waves of data from the 2003, 2006, and 2009 cohorts of the Longitudinal Surveys of Australian Youth, we examine the extent to which the curiosity of young adults is associated with their school-age cognition level. We find that curious individuals are more likely to have had higher levels of science and reading ability in school, yet curiosity is negatively associated with school-age mathematics ability. These findings provide clear strategies for employers wanting to recruit curious employees without access to expensive profiling techniques.
Journal: Applied Economics
Pages: 1119-1135
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174943
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174943
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:10:p:1119-1135



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174946_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: The role of Covid-19 in bank profitability convergence: evidence from a sample of US banks and club clustering
Abstract: 
 This paper explores whether there is convergence of bank profits in the US banking sector across the periods before and during the COVID-19 pandemic. For the first time in the literature, it provides empirical evidence from 86 largest banks in the sector by making use of certain convergence methods. The empirical (robust) findings document that over the pandemic crisis, bank profits illustrated a more convergence pattern, while certain explanatory determinants of bank profitability, such as non-performing loans and digital technology, seem to stronger impact on higher convergence during the pandemic crisis.
Journal: Applied Economics
Pages: 1155-1166
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174946
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174946
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:10:p:1155-1166



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2175772_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: W. David Allen
Author-X-Name-First: W. David
Author-X-Name-Last: Allen
Author-Name: W. Charles Sawyer
Author-X-Name-First: W. Charles
Author-X-Name-Last: Sawyer
Title: Property crime and the China trade shock
Abstract: 
 Burglary has declined markedly in the U.S.A. We investigate whether increased imports from China (the China Trade Shock), by reducing the market value of theft-worthy goods, reduced the incentive to commit this and other property crimes. Panel data models reveal lower property crime rates in association with increased Chinese imports and comparable effects in relation to other prominent trade partners, indicating minimal property crime displacement effects. Some import effects do link to increased violent crime rates, but none in relation to imports from China. The results illustrate how expanded trade provides social benefits in addition to its well-established economic benefits.
Journal: Applied Economics
Pages: 1167-1190
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2175772
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175772
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:10:p:1167-1190



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2175773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Bei Gao
Author-X-Name-First: Bei
Author-X-Name-Last: Gao
Author-Name: Yanbo Jin
Author-X-Name-First: Yanbo
Author-X-Name-Last: Jin
Author-Name: Jingxian Zou
Author-X-Name-First: Jingxian
Author-X-Name-Last: Zou
Title: What drives enterprise asset-backed securitization in China?
Abstract: 
 Using transaction-level data on enterprise asset-backed securities (ABS), we investigate the relationship between ABS issuance, interest savings, and firm characteristics in China. About half of the ABS deals were issued by small and medium-sized enterprises (SMEs), and around 70% of the issues carry a coupon rate lower than the average interest rate on bank loans. Firms issue more ABS when the interest savings are high, or when they face more restricted access to credit. Private firms are most responsive to the benefits provided by the enterprise ABS market compared to state-owned enterprises and foreign companies.
Journal: Applied Economics
Pages: 1191-1207
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2175773
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175773
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:10:p:1191-1207



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2175774_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Hongxia Wang
Author-X-Name-First: Hongxia
Author-X-Name-Last: Wang
Author-Name: Shushu Qiu
Author-X-Name-First: Shushu
Author-X-Name-Last: Qiu
Author-Name: Jianli Wang
Author-X-Name-First: Jianli
Author-X-Name-Last: Wang
Author-Name: Ho Yin Yick
Author-X-Name-First: Ho Yin
Author-X-Name-Last: Yick
Title: An ARDL approach to study the cointegration relations between the Shanghai crude oil futures and global markets
Abstract: 
 The Shanghai crude oil futures market, as the largest crude oil market in the Asia-Pacific region, is an important complement to the global crude oil market. We use the autoregressive distributed lag model (ARDL) to examine long-term and short-term cointegration relations between the Shanghai crude oil futures market and China’s crude oil spot market (Daqing), international (WTI and Brent) benchmarks. Based on the price data of the Shanghai crude oil futures contract covering a long period, we find that, in the long run, the Shanghai crude oil futures price is greatly affected by international crude oil markets. In the short run, both international and China’s crude oil spot markets have a significant influence on the Shanghai crude oil futures prices. Moreover, our dynamic simulation results show that there is a significant time lag for the Shanghai crude oil futures market to respond to the shocks from the domestic and international markets.
Journal: Applied Economics
Pages: 1208-1219
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2175774
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175774
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:10:p:1208-1219



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174941_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Hyuna Jang
Author-X-Name-First: Hyuna
Author-X-Name-Last: Jang
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hohsuk Noh
Author-X-Name-First: Hohsuk
Author-X-Name-Last: Noh
Title: Vine copula Granger causality in quantiles
Abstract: 
 Causal relationships between time series are typically examined by testing for Granger causality. Although many studies have tested Granger causality in mean, non-causality in mean does not need to carry over to other distribution characteristics or different parts of the distribution. This scenario has motivated many researchers to investigate causal relations from the perspective of conditional quantiles. Several methods have been proposed for both parametric and nonparametric modelling frameworks. Parametric methods have limitations in detecting nonlinear causality, whereas nonparametric methods have difficulty selecting smoothing parameters that significantly affect detection performance. To overcome the difficulties of both parametric and nonparametric Granger causality tests in quantiles, we propose a vine copula Granger causality test in quantiles using the semiparametric time-series modelling technique. The proposed test overcomes shortcomings in parametric modelling and has a computational advantage over nonparametric tests. Our test shows good performance in terms of size and power when using various simulated data. Finally, we illustrate our test using recent cryptocurrency data.
Journal: Applied Economics
Pages: 1109-1118
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174941
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174941
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:10:p:1109-1118



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174945_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Tong Fang
Author-X-Name-First: Tong
Author-X-Name-Last: Fang
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: National culture and international business cycle co-movements
Abstract: 
 We investigate the relationship between national culture and international business cycle co-movements. We first characterize international business cycle co-movements with a dynamic latent factor model that decomposes 101 countries’ real GDP growth rates into world, regional and country-specific factors and estimate the proportion of real GDP growth rate variance explained by the world, regional and country factors for each country. We then regress these proportions on each of the five dimensions of Hofstede’s national culture with a set of control variables. We find that four dimensions (except for power distance) are significantly related to business cycle co-movements, and they have different impacts. In countries with masculinity, uncertainty avoidance and long-term orientation preferences, the global factor explains a larger real GDP growth rate variance. Individualism weakens a country’s business cycle co-movement with the global business cycle. Countries with similar cultural values have similar economic structures and similar exposures to global shocks, which lead to business cycle co-movements. Our results are robust after addressing the issue of endogeneity and subsample analyses.
Journal: Applied Economics
Pages: 1136-1154
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174945
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174945
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:10:p:1136-1154

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2169244_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Andrew Samuel
Author-X-Name-First: Andrew
Author-X-Name-Last: Samuel
Author-Name: Jeremy Schwartz
Author-X-Name-First: Jeremy
Author-X-Name-Last: Schwartz
Title: Going Underground: The impact of deterrence on the landlords' decision to operate informally
Abstract: 
 This paper examines how enforcement of regulations affects firms’ decision to operate formally, underground, or exit the market. The firms in our study are landlords of rental properties. Using a unique data set that identifies underground and exited properties, we find that enforcement makes going underground more likely when only fines are issued but less likely when enforcement requires abatement. Additionally, observing higher levels of enforcement among neighbouring properties (general deterrence) increases the likelihood of going underground when abatement is required. These findings are consistent with the predictions of a theoretical framework we develop. Accordingly, the study makes two contributions to the informality literature. First, that whether enforcement has a positive or negative impact on operating underground depends on whether that enforcement requires abatement. Second, it identifies both the extensive margin between informality and formality, and the margin between informality and exiting an industry.
Journal: Applied Economics
Pages: 656-673
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2169244
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169244
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:656-673



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2170968_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Luca Bonacini
Author-X-Name-First: Luca
Author-X-Name-Last: Bonacini
Author-Name: Irene Brunetti
Author-X-Name-First: Irene
Author-X-Name-Last: Brunetti
Author-Name: Giovanni Gallo
Author-X-Name-First: Giovanni
Author-X-Name-Last: Gallo
Title: Choose the school, choose the performance: new evidence on determinants of students’ performance in eight European countries
Abstract: 
 This study aims to identify the main determinants of students’ performances in reading and maths across eight European Union countries (i.e. Austria, Croatia, Germany, Hungary, Italy, Portugal, Slovakia, and Slovenia). Based on student level data from the OECD-PISA 2018 survey and by means of the application of efficient algorithms, we highlight that the number of books at home or a variable combining the type and location of school represent the most important predictors of the students’ performance in all the analysed countries, while other school characteristics are rarely relevant. Econometric results show that students attending vocational schools perform significantly worse than those in general schools. Looking at differences between students attending schools in big cities and those in small cities, they are never statistically significant except in Portugal. Through the Gelbach decomposition method, which allows to measure the relative importance of observable characteristics to explain a gap, we show that the differences in test scores between big and small cities depend on the schools’ characteristics, while the differences between general and vocational schools are mainly explained by the families’ social status. Results appear robust to the hierarchical model approach.
Journal: Applied Economics
Pages: 692-707
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2170968
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170968
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:692-707



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2170967_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jungmin Yoo
Author-X-Name-First: Jungmin
Author-X-Name-Last: Yoo
Author-Name: Sooin Kim
Author-X-Name-First: Sooin
Author-X-Name-Last: Kim
Title: Impact of IFRS adoption on the disclosure of management forecasts by industry concentration
Abstract: 
 We aim to investigate the impact of the adoption of the International Financial Reporting Standards (IFRS) on a firm’s strategic voluntary disclosure decisions under different product market conditions. In the corporate world, firms tactically decide the level of voluntary disclosures considering their benefits, like resolving information asymmetry in the financial market, and costs, like providing proprietary information to their rivals. The adoption of IFRS has affected the demands in the financial market for complementary information, and therefore, it would affect the incentive to withhold corporate information in consideration of proprietary costs in the product market. Using a sample of Korean firms, we find that the likelihood of withholding management forecasts in concentrated industries is weaker in the post-IFRS adoption phase than in the pre-IFRS adoption phase. This is because there are greater demands for corporate disclosures for firms in concentrated industries in the post-IFRS adoption phase than earlier. Moreover, we find that the influence of IFRS on the decision of firms in concentrated industries to disclose management forecasts is significant only for firms with higher market power and higher financial leverage.
Journal: Applied Economics
Pages: 674-691
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2170967
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170967
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:674-691



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2170969_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dorian Balvir
Author-X-Name-First: Dorian
Author-X-Name-Last: Balvir
Title: Fiscal rules: the imitation game
Abstract: 
 De jure fiscal rules have known a rapidly increasing popularity worldwide. This paper aims at analysing their spatial diffusion in 108 countries over the period 2001–2015 using a pooled version of the Bayesian SAR probit model. Using two different types of weighting (geographic proximity and bilateral trade) and desegregating the results for specific rules, I find a significant and positive spatial lag in line with the imitation (strategic complementarity) hypothesis. Rational imitation, deriving from a race to fiscal credibility, is preferred over the blind imitation hypothesis as the mimetic behaviour is revealed only in countries facing weaker fiscal reputation.
Journal: Applied Economics
Pages: 708-727
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2170969
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170969
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:708-727



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2287558_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sébastien Charles
Author-X-Name-First: Sébastien
Author-X-Name-Last: Charles
Title: Is French (dis)inflation explained by conflicting-claims theory? Evidence from cointegration with structural break
Abstract: 
 The aim of this article is to provide an explanation of French (dis)inflation based on the conflicting-claims theory. Making use of cointegration techniques with structural breaks, we bring some empirical evidence suggesting the soundness of such a theory in order to explain the variation of inflation in the long run. Amongst our main results, we show that the transition from the Great Inflation of the 1970s to the Great Moderation was the consequence of a dramatic collapse in the bargaining power of both workers and firms. As a secondary objective, it is also an attempt to fill the gap with other competing theories of inflation since the conflicting-claims approach is characterized by a relative paucity in terms of empirical works.
Journal: Applied Economics
Pages: 728-743
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2287558
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2287558
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:728-743



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2287554_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yao Han
Author-X-Name-First: Yao
Author-X-Name-Last: Han
Author-Name: James W. Kolari
Author-X-Name-First: James W.
Author-X-Name-Last: Kolari
Author-Name: Seppo Pynnonen
Author-X-Name-First: Seppo
Author-X-Name-Last: Pynnonen
Title: Dynamic risk adjustment in long-run event study tests
Abstract: 
 The existence of long-run abnormal returns after major corporate events has become a controversial subject of debate. We contribute new evidence by implementing a daily rolling prediction error (RPE) approach using popular asset pricing models to adjust for time-varying risk parameters in asset pricing models when estimating long-run abnormal returns. Using this simple approach, we find initial significant return responses in the month or two after SEOs and M&As but none thereafter. Robustness checks with different asset pricing models, corporate events, and subperiods corroborate our results. Also, simulation tests confirm the robustness of the RPE method to potential risk shifts. We conclude that, after dynamic risk adjustment, long-run abnormal returns do not occur after the major corporate actions under study.
Journal: Applied Economics
Pages: 744-764
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2287554
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2287554
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:744-764



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2169243_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guo Wu
Author-X-Name-First: Guo
Author-X-Name-Last: Wu
Author-Name: Jiadong Luo
Author-X-Name-First: Jiadong
Author-X-Name-Last: Luo
Author-Name: Kejing Tao
Author-X-Name-First: Kejing
Author-X-Name-Last: Tao
Title: Research on the influence of FinTech development on credit supply of commercial banks: the case of China
Abstract: 
 This study investigates the impact of FinTech development on the credit supply of China’s commercial banks to individuals and enterprises. We first evaluate the development status and prospects of FinTech in China and construct theoretical influencing hypotheses. A ‘supply-side’ FinTech development index is constructed using principal component analysis. We employ panel data models and use financial data from 22 listed China’s commercial banks between the year 2013 and 2020 to empirically test the hypothesized relationships. Multiple approaches are used to deal with endogenous problems. We also estimate the impact in a difference-in-difference model specification. The results show that FinTech development effectively facilitates the expansion of bank credit and the relationship continues to hold after remedying endogeneity issues. We further find that the impact is heterogeneous across banks in terms of bank type and bank size, with the impact on state-owned commercial banks being the least significant and the impact on small banks being the most significant.
Journal: Applied Economics
Pages: 639-655
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2169243
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169243
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:639-655

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2173362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Nattanicha Chairassamee
Author-X-Name-First: Nattanicha
Author-X-Name-Last: Chairassamee
Author-Name: Oudom Hean
Author-X-Name-First: Oudom
Author-X-Name-Last: Hean
Title: Financing and Enrollments in Public Universities
Abstract: 
 State budget cuts have raised concerns about the disproportionate enrolment of out-of-state students. These students pay higher tuition fees at public universities. We investigate the decision-making of public universities about in-state and out-of-state enrolments by considering tuition rates as a financial incentive. We find that out-of-state enrolment is elastic, while in-state enrolment is relatively less elastic. Universities participating in reciprocity programs show that local student share is relatively insensitive to tuition changes; however, non-local student enrolments are more sensitive to these tuition changes. Overall, there is no evidence of the crowding-out effect on local student enrolment.
Journal: Applied Economics
Pages: 812-825
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2173362
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2173362
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:812-825



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2291098_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Zhibai Zhang
Author-X-Name-First: Zhibai
Author-X-Name-Last: Zhang
Title: Is there a rule of thumb for absolute purchasing power parity to hold?
Abstract: 
 The validity of absolute purchasing power parity (APPP) between the pairs of 55 representative countries, along with their pooled data, is examined empirically. A rule of thumb for the validity of APPP is tentatively proposed. That is, for a pair of countries exhibiting the Penn effect, when the GDP per capita of one country is less than half of the other’s, it is very likely that APPP does not hold. However, when the GDP per capita of one country is greater than half of the other’s, there is a certain possibility that APPP holds.
Journal: Applied Economics
Pages: 851-860
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2291098
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2291098
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:851-860



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2289935_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Sang W. Yoon
Author-X-Name-First: Sang W.
Author-X-Name-Last: Yoon
Author-Name: Younjun Kim
Author-X-Name-First: Younjun
Author-X-Name-Last: Kim
Author-Name: Byoung G. Park
Author-X-Name-First: Byoung G.
Author-X-Name-Last: Park
Author-Name: Chang-Ho Yoon
Author-X-Name-First: Chang-Ho
Author-X-Name-Last: Yoon
Title: Bilateral environmental aid and trade
Abstract: 
 The paper estimates the determinants of the growing volume of bilateral environmental aid for the mitigation of climate change using an empirically testable multilateral framework in which both donors and recipient countries compete in world export markets. As the potential donors weigh environmental benefits against the economic costs of providing aid, strategic interactions between the donors and the recipient countries as well as among the donors, influence the evolution of environmental aid. The paper shows that while the volume of bilateral environmental aid increases with the recipient country’s credible environmental commitment and bilateral trade volume, the competitive pressure in the export market reduces bilateral environmental aid. Free-riding incentives prevail among the individual donors, whereas the multilateral environmental aids that aim to restore the loss of global environmental resources without altering individual trade competitiveness can increase bilateral environmental aids.
Journal: Applied Economics
Pages: 836-850
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2289935
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2289935
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:836-850



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174497_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Jungho Baek
Author-X-Name-First: Jungho
Author-X-Name-Last: Baek
Title: The role of crude oil demand and supply shocks on exchange rates: empirical evidence from South Korea
Abstract: 
 The primary contribution of the present paper is to explicitly take into consideration the role that the three different components of crude oil shocks – oil supply shocks, aggregate demand shocks, and oil-specific demand shocks – when studying the nexus between oil price shocks and the South Korean won (KRW). We discover that oil demand shocks have had significant impacts on KRW over the past two decades: that is, an upsurge in oil prices driven by positive shocks in aggregate demand and oil-specific demand appears to appreciate KRW. However, oil supply shocks turn out to have negligible impacts. We also unveil that two oil demand shocks seem to asymmetrically influence KRW in the short run.
Journal: Applied Economics
Pages: 826-835
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174497
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174497
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:826-835



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2172521_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Erik Alda
Author-X-Name-First: Erik
Author-X-Name-Last: Alda
Author-Name: Víctor Giménez
Author-X-Name-First: Víctor
Author-X-Name-Last: Giménez
Author-Name: Irvin Gilberto Paz Castro
Author-X-Name-First: Irvin Gilberto
Author-X-Name-Last: Paz Castro
Author-Name: América Ivonne Zamora Torres
Author-X-Name-First: América Ivonne
Author-X-Name-Last: Zamora Torres
Title: Modernization plans for the Mexican customs system: have they really worked? A productivity impact assessment
Abstract: 
 Efficiency measurement of customs offices is a nascent but growing area of research interest. In this study we examined whether the Mexican government’s policies enacted during the 2011–2017 period improved the efficiency of the customs system. Our empirical approach employed a standard metafrontier model to assess the efficiency of all customs offices in Mexico. We examined changes in the best-practice performance, productivity, and technology leadership for three groups of customs offices (border, interior, and maritime) by conducting static and temporal analyses. The static analysis showed that border customs had the most within-group variations. The internal customs group exhibited constant efficiency, whereas the maritime customs group was nearest to the metafrontier. The temporal analysis indicated that border customs offices were the most productive group during the period; however, this group was distant from the metafrontier. Our findings contribute to the growing literature on customs efficiency measurement.
Journal: Applied Economics
Pages: 796-811
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2172521
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2172521
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:796-811



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2288066_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Jingjing Zhao
Author-X-Name-First: Jingjing
Author-X-Name-Last: Zhao
Author-Name: Zongye Huang
Author-X-Name-First: Zongye
Author-X-Name-Last: Huang
Title: Mobile payments and crime: evidence from China
Abstract: 
 Using a policy change in 2016 as a natural experiment, we employ a Difference-in-Difference (DID) model to analyse the effects of mobile payments development on crime rates in Chinese prefectures from 2015 to 2019. Our findings indicate that mobile payments expansion has a significant negative effect on theft, with the reduction of residents’ cash holdings serving as a potential mechanism. However, we find no significant impact on non-economic crimes like sexual assault and murder. This study provides evidence supporting the role of policies and technologies enabling mobile payments development in deterring crime and enhancing social security.
Journal: Applied Economics
Pages: 765-778
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2288066
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2288066
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:765-778



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2170970_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Title: The risks of trading on cryptocurrencies: A regime-switching approach based on volatility jumps and co-jumping behaviours
Abstract: 
 Previous research has shown volatility jumps and co-jumping behaviours in cryptocurrency markets. Motivated by these findings, we employ the herding effect and financial contagion channel to outline a theoretical framework of volatility-state-dependent correlations in cryptocurrency markets. We show that digital currency markets are more strongly correlated when experiencing an identical volatility regime, which echoes co-jumping behaviours addressed by the literature. Moreover, the strong correlation that occurs when the paired cryptocurrencies simultaneously experience a high volatility regime results in the least effectiveness of diversification in terms of a minimum portfolio risk reduction. Last but not least, the proposed state-dependent approach in this study proves effective at the task of risk forecasting and risk reduction for cryptocurrency portfolios, beyond the bivariate GARCH-based models, which are a pure and simple time-dependent approach.
Journal: Applied Economics
Pages: 779-795
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2170970
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170970
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:779-795

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174498_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Sezard Timbi
Author-X-Name-First: Sezard
Author-X-Name-Last: Timbi
Author-Name: Zedou Abdala
Author-X-Name-First: Zedou
Author-X-Name-Last: Abdala
Title: The effect of Financial Development on Pro-Poor Growth: evidence from Sub-Saharan African Countries
Abstract: 
 This paper extends the empirical analysis establishing the significant and positive/negative influence of finance on growth/poverty by examining the contribution of financial development to pro-poor growth. We investigate the relationship between financial development and pro-poor growth in a panel of 29 countries from sub-Saharan Africa over the period 1994–2019. We focus on the vast majority income as the main indicator of pro-poor growth. We use the recent financial development index as a measure of financial development. Using Pooled Mean Group-ARDL estimation in a dynamic heterogeneous panel framework, we obtain the following results: (i) from linear analysis, there is a positive and significant effect of financial access, financial efficiency and the overall financial development index on pro-poor growth in the short run, while in the long run, only financial efficiency affects negatively and significantly pro-poor growth; (ii) results show that the nonlinear relation is not verified in the short run, while in the long run, there is an inverted U-shaped relationship between the financial development index, financial access and financial depth and pro-poor growth. This suggests that too much finance can be detrimental to pro-poor growth in SSA. Financial inclusion of the poor combined with governance is necessary to improve pro-poor growth.
Journal: Applied Economics
Pages: 861-879
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174498
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174498
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:8:p:861-879



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174500_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Tore Dubbert
Author-X-Name-First: Tore
Author-X-Name-Last: Dubbert
Title: Stochastic debt sustainability analysis using time-varying fiscal reaction functions - an agnostic approach to fiscal forecasting
Abstract: 
 This paper presents a model-based approach for stochastic primary balance and public debt simulations to assess fiscal sustainability in selected OECD countries. Fiscal behaviour is modelled by means of a fiscal reaction function with time-varying coefficients, which is then, together with a time-varying coefficient vector autoregression, embedded in a stochastic debt sustainability analysis framework. In a pseudo-out-of-sample forecasting exercise using vintage datasets, the model is evaluated against its frequently used fixed coefficient pendant and the European Commission’s Economic Forecasts at different horizons. The results indicate that stochastic debt sustainability analyses based on time-varying fiscal reaction functions and vector autoregressions perform competitively in terms of mean squared error and forecast bias at different horizons, especially with respect to public debt as well as short-term primary balance forecasts. Thus, models of this sort should be considered for complementary use at policy institutions, using them jointly with more ‘discretionary’ approaches to fiscal sustainability analysis.
Journal: Applied Economics
Pages: 901-917
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174500
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174500
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:8:p:901-917



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2288041_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Marius Huguet
Author-X-Name-First: Marius
Author-X-Name-Last: Huguet
Author-Name: Xavier Joutard
Author-X-Name-First: Xavier
Author-X-Name-Last: Joutard
Author-Name: Lionel Perrier
Author-X-Name-First: Lionel
Author-X-Name-Last: Perrier
Title: Patient preferences, referral process, and access to specialized care. Is patient choice constrained?
Abstract: 
 In most developed countries, patients have been encouraged to elect their preferred choice of health care provider. However, this is different for specialized care, where the patient’s referral could be defined as a two-stage decision process and their options are pre-selected by their general practitioner (GP). In this study, we estimate patient preferences while controlling for the pre-selection procedure, and we investigate whether patients are actively choosing their provider for cancer care. The French national hospital discharge database (Programme de Médicalisation des Systèmes d’Information, PMSI – MCO 2017) has been used for investigation. We estimated a multinomial choice model when choice sets are in fact unobserved, which is assumed to identify patient preferences, in a revealed preferences framework. Our findings provide evidence that patients consider factors other than distance to select their provider. The patient – hospital distance as well as the specialization profile of providers appears to be internalized in the pre-selection process, while patients rather consider waiting times, hospital quality, and other provider attributes to make their final choice. We also found that patients would be treated in higher-quality hospitals if they had the opportunity to choose among all available providers.
Journal: Applied Economics
Pages: 978-996
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2288041
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2288041
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:8:p:978-996



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174499_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Muneer Shaik
Author-X-Name-First: Muneer
Author-X-Name-Last: Shaik
Author-Name: George Varghese
Author-X-Name-First: George
Author-X-Name-Last: Varghese
Author-Name: Vinodh Madhavan
Author-X-Name-First: Vinodh
Author-X-Name-Last: Madhavan
Title: The dynamic volatility connectedness of global financial assets during the Ebola & MERS epidemic and the COVID-19 pandemic
Abstract: 
 We investigate the dynamic volatility connectedness of regional stocks, gold, Bitcoin, oil, and uncertainty index related to infectious diseases for the period from January 2014 to June 2022. We investigate the connectivity during Ebola & MERS periods, the normal period, the COVID-19 period and the full sample period. We find that the regional stock indices of the US, Europe, Africa and Latin America are net volatility transmitters whereas regional indices of Asia Pacific, Middle East and North Africa, and other assets like gold, oil and Bitcoin are net volatility recipients throughout the sample periods. By employing the TVP-VAR-based dynamic connectedness approach, we find the temporal evolution of system-wide total connectedness and pair-wise connectedness of financial assets to exhibit higher intensity of volatility spillover during the COVID-19 pandemic as compared to other sub-sample periods. We further observe, based on quantile connectedness approach, that the degree of dynamic connectedness is strong and significant across all the quantile spectrums only during the COVID-19 period. We observe that the safe haven characteristics of assets like gold, oil and Bitcoin diminish during the COVID-19 period due to strong dynamic connectedness with regional stock indices. Our findings have implications for policymakers, investors and portfolio managers in better risk management during periods of health epidemics and pandemics.
Journal: Applied Economics
Pages: 880-900
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174499
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174499
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:8:p:880-900



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174934_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Peng Huang
Author-X-Name-First: Peng
Author-X-Name-Last: Huang
Author-Name: Yue Lu
Author-X-Name-First: Yue
Author-X-Name-Last: Lu
Author-Name: Frank Scrimgeour
Author-X-Name-First: Frank
Author-X-Name-Last: Scrimgeour
Title: Environmental determinants of cross-border mergers and acquisitions: evidence from the global agricultural and food sector
Abstract: 
 We examine the effect of several agricultural factors in determining the likelihood of cross-border mergers and acquisitions (M&As) in the global agricultural and food sector. We find that, better acquirer (target) country agricultural resources, productivity, and environments are associated with lower (higher) likelihood of cross-border M&As. Further analyses suggest that these agricultural factors have similar though weaker effects in non-agricultural deals. Overall, we highlight the important roles played by such agricultural factors in determining cross-border M&As, especially in the agricultural and food sector.
Journal: Applied Economics
Pages: 956-977
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174934
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174934
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:8:p:956-977



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174931_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Dung Thi Thuy Nguyen
Author-X-Name-First: Dung Thi Thuy
Author-X-Name-Last: Nguyen
Author-Name: Ivan Diaz-Rainey
Author-X-Name-First: Ivan
Author-X-Name-Last: Diaz-Rainey
Author-Name: Helen Roberts
Author-X-Name-First: Helen
Author-X-Name-Last: Roberts
Author-Name: Minh Le
Author-X-Name-First: Minh
Author-X-Name-Last: Le
Title: The impact of natural disasters on bank performance and the moderating role of financial integration
Abstract: 
 Using a sample of East Asian banks covering the period 1999–2014, this paper analyses the impact of natural disasters on commercial bank performance and how financial integration moderates this relationship. A dynamic GMM model reveals that natural disasters significantly lower deposit ratios but have no contemporaneous relationship with liquidity, credit risk, profitability and default risk. There is also evidence of a lagged effect of disasters, increasing deposits and lowering liquidity one year after the event. Furthermore, foreign banking claims, specifically those extended by regional Asian lenders, help to alleviate the deposits decline in the aftermath of natural disasters. These baseline findings are mainly driven by severely affected countries. Overall, the paper highlights the role of commercial bank deposits and foreign banking claims as sources of finance for post-disaster recovery. In particular, the resilience of Asian foreign claims in the event of natural disasters provides evidence to support intra-regional financial integration in East Asia.
Journal: Applied Economics
Pages: 918-940
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174931
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174931
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:8:p:918-940



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174932_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jianqiang Sun
Author-X-Name-First: Jianqiang
Author-X-Name-Last: Sun
Author-Name: Fahmida Mostafiz
Author-X-Name-First: Fahmida
Author-X-Name-Last: Mostafiz
Author-Name: Yumei Cai
Author-X-Name-First: Yumei
Author-X-Name-Last: Cai
Author-Name: Fujing Yang
Author-X-Name-First: Fujing
Author-X-Name-Last: Yang
Title: Cultural distance, language dissimilarity and trade disputes
Abstract: 
 In this paper, we investigate the role of cultural distance in international trade disputes by using a hand-collected dataset of 535 World Trade Organization trade dispute cases covering 158 countries. We find that cultural distance significantly increases the probability of trade disputes and the willingness of a country to initiate a trade complaint. Country pairs with an additional unit of cultural distance measured directly by the Hofstede culture indices have an average 0.18% higher probability of being involved in a trade dispute. Country with a unit farther cultural distance to its trade partner has an average 0.18% higher probability of filing a trade complaint. We further measure cultural distance indirectly from the perspective of language dissimilarity and find that country pairs using a common official language other than their spoken or native language have an average 0.55% higher probability of trade disputes. Cultural costs and cultural protectionism the possible mechanisms are analysed in a general pattern. This study provides a cultural perspective for trade conflict resolution.
Journal: Applied Economics
Pages: 941-955
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174932
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174932
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:8:p:941-955

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2244249_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jiajun Lan
Author-X-Name-First: Jiajun
Author-X-Name-Last: Lan
Author-Name: Yinghao Pan
Author-X-Name-First: Yinghao
Author-X-Name-Last: Pan
Author-Name: Yingjie Yu
Author-X-Name-First: Yingjie
Author-X-Name-Last: Yu
Title: The role of digital financial inclusion in increasing fertility intentions: evidence from China
Abstract: 
 Digital financial inclusion is essential for promoting regional development, but its impact on demographic change requires further investigation. Using data from the Chinese General Social Survey (CGSS) between 2012 and 2017, this study provides empirical evidence on how the growth of digital financial inclusion affects fertility intentions in China. The results indicate that a one percent increase in the provincial-level digital financial inclusion index is associated with a 0.136% increase in fertility intentions. These findings hold across different components of digital financial inclusion and are robust to instrumental variable approaches. Moreover, the study shows that the expansion of digital financial inclusion has a more significant effect on households in low-income groups, central and western regions of China, and women with low educational attainment. These results underscore the importance of digital financial inclusion in addressing population declines worldwide.
Journal: Applied Economics
Pages: 1090-1108
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2244249
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2244249
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:9:p:1090-1108



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174936_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Phuong Anh Nguyen
Author-X-Name-First: Phuong Anh
Author-X-Name-Last: Nguyen
Author-Name: Nhu Phuong Nguyen
Author-X-Name-First: Nhu Phuong
Author-X-Name-Last: Nguyen
Author-Name: Huu Minh Duc Le
Author-X-Name-First: Huu Minh Duc
Author-X-Name-Last: Le
Title: Systemic risk and financial system network using financial risk meter: the case of Vietnam
Abstract: 
 In the ﬁnancial market, systemic risk is deﬁned as the possibility that an event at the company level could trigger severe instability or collapse of an entire industry or the whole economy. Thus, understanding systemic risk is crucial for the ﬁnancial institutions, large corporations, investors and regulators. This article investigates systemic risk and spillover eﬀect using the new Financial Risk Meter ($$FRM$$FRM) index, which is obtained from running quantile linear regression and Least Absolute Shrinkage and Selection Operator ($$LASSO$$LASSO) method. The $$FRM$$FRM index is obtained to identify the highly risky periods, the contributors to systemic risk and the potential activators of spillover eﬀect. Moreover, interconnection between ﬁrms can be visualized as a network. We use a data set consisting of daily stock returns from 35 ﬁnancial institutions and real estate ﬁrms in Vietnam, combined with 4 macroeconomic variables over the period from November 2011 to December 2020. The ﬁndings indicate that over the considered period, some detected highly risky periods are 2012, 2018 and 2020, probably due to the non-performing loan crisis in Vietnam, US-China trade war and global COVID-19 outbreak. Some active activators of risk spillover eﬀect are also identiﬁed.
Journal: Applied Economics
Pages: 1012-1034
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174936
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174936
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:9:p:1012-1034



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174937_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Long Wang
Author-X-Name-First: Long
Author-X-Name-Last: Wang
Title: Political cycle and effective corporate tax rate: evidence from China
Abstract: 
 This research aims to investigate the changing of effective corporate tax rate during the political cycle of Provincial Party Congresses with the data from Chinese industrial businesses from 1998 to 2009. The study shows that the effective tax rate for enterprises fluctuates with the political cycle of Provincial Party Congresses. The effective tax rate, in particular, tends to rise in the year before and during the Provincial Party Congresses, then decline year after year. Further study reveals variation in the impact of political cycles on officials and enterprises with various characteristics; for example, the impact of the corporation effective tax rate is more obvious for male officials, private firms, and so on. At the same time, the paper does not find a significant age ‘ceiling effect’ among prefecture-level officials in China. And the regional rule of law construction does not have a significant effect on the political cyclicality of corporate effective tax rates, whereas the political cyclicality of effective corporate tax rates is more pronounced in regions with higher government investment intensity. Finally, this paper puts forward policy recommendations such as improving officials’ promotion and assessment mechanisms and optimizing the government’s policy implementation.
Journal: Applied Economics
Pages: 1035-1048
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174937
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174937
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:9:p:1035-1048



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174940_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Caihong Tang
Author-X-Name-First: Caihong
Author-X-Name-Last: Tang
Author-Name: Anitha Rosland
Author-X-Name-First: Anitha
Author-X-Name-Last: Rosland
Author-Name: Jie Li
Author-X-Name-First: Jie
Author-X-Name-Last: Li
Author-Name: Rizwana Yasmeen
Author-X-Name-First: Rizwana
Author-X-Name-Last: Yasmeen
Title: The comparison of bilateral trade between China and ASEAN, China and EU: from the aspect of trade structure, trade complementarity and structural gravity model of trade
Abstract: 
 This article mainly compares China’s bilateral trade relation with the Association of Southeast Asian Nations (ASEAN) and with the European Union (EU), mainly from the perspective of China. We make the trade relation comparison in terms of trade volume and structure, trade complementarity index and impact factors on bilateral trade flow. We find the following results: (1) China mainly exports high-tech electronic and electrical and medium-tech products to ASEAN, and high-tech electronic and electrical and low-tech manufactures to EU yet imports high-tech electronic and electrical products from ASEAN and medium-tech products from EU. (2) China has strong competitiveness in low-tech manufactures and high-tech electronic and electrical area yet comparatively low competitiveness in medium-tech area; (3) China has high trade complementarity with EU in low-tech area and high trade complementarity with ASEAN in high-tech electronic and electrical area; (4) Based on structural gravity model of trade, the GDP per capita, monetary freedom, trade freedom and human development index have significant impacts on China-ASEAN and China-EU bilateral trade; WTO membership has impact on China’s trade with ASEAN yet not with EU; distance has impact on China’s trade with EU yet not with ASEAN.
Journal: Applied Economics
Pages: 1077-1089
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174940
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174940
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:9:p:1077-1089



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174935_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Caroline Perrin
Author-X-Name-First: Caroline
Author-X-Name-Last: Perrin
Author-Name: Laurent Weill
Author-X-Name-First: Laurent
Author-X-Name-Last: Weill
Title: Girls will be girls? The gendered effect of economic policy uncertainty on corporate investment
Abstract: 
 We examine the effect of CEO gender on the relationship between economic policy uncertainty (EPU) and corporate investment. Using the newspaper-based EPU index developed by Baker, Bloom, and Davis (2016), we perform an empirical investigation on firm-level data of more than 38,000 firms from eight European countries for 2010–2019. We find evidence that higher EPU is associated with higher corporate investment. However, we show that this beneficial effect of economic policy uncertainty is lower when the firm CEO is a woman. We explain this finding by the higher risk aversion of women relative to men. Our work contributes to the debate on the impact of EPU on firm corporate decisions by bringing upfront the influence of CEO gender.
Journal: Applied Economics
Pages: 997-1011
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174935
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174935
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:9:p:997-1011



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174939_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Zahra Hatami
Author-X-Name-First: Zahra
Author-X-Name-Last: Hatami
Author-Name: Prasad Chetti
Author-X-Name-First: Prasad
Author-X-Name-Last: Chetti
Author-Name: Hesham Ali
Author-X-Name-First: Hesham
Author-X-Name-Last: Ali
Author-Name: David Volkman
Author-X-Name-First: David
Author-X-Name-Last: Volkman
Title: A novel population analysis approach for analyzing financial markets under crisis - a focus on excess returns of the US stocks under 9/11 and COVID-19
Abstract: 
 Since the seminal research of Harry Markowitz, the importance of Pareto Optimal portfolios and asset correlation has been a foundation of modern portfolio theory. Recent researchers have expanded on Markowitz-efficient portfolios using advanced statistical methods to identify correlations among assets, while other researchers have demonstrated the decline in asset correlations during periods of market volatility and economic shocks. We extend this research by applying a novel approach based on the concept of population analysis to study the correlation of assets under major economic shocks. We use similarity networks to investigate the impact of the COVID-19 pandemic on various sectors, and then compare it with the behavioural patterns associated with the 9/11 event. The population analysis revealed that during the current pandemic, the behavioural pattern of the finance and energy sectors was significantly different than other sectors. Similar results were found for the finance and the industrial sectors during the 9/11 attacks.
Journal: Applied Economics
Pages: 1063-1076
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174939
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174939
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:9:p:1063-1076



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2174938_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Hugues Kouassi Kouadio
Author-X-Name-First: Hugues Kouassi
Author-X-Name-Last: Kouadio
Author-Name: Romain Kouakou N’Guessan
Author-X-Name-First: Romain Kouakou
Author-X-Name-Last: N’Guessan
Title: Do educational inequalities between marital partners influence the empowerment of educated women in ECOWAS?
Abstract: 
 In an environment where the question of women’s empowerment is a burning issue and where inequalities against women in education persist even though they are increasingly educated, it made sense to study the effect of educational inequalities between marital partners on women’s empowerment. Thus, using the latest rounds of the Demographic and Health Survey (DHS) women’s file from the four major West African economies including Nigeria (2013), Côte d’Ivoire (2011–12), Ghana (2014) and Senegal (2017), and then using a combination of internal and external instruments to better address issues related to the endogeneity of variables, we show that strong gender disparities in education negatively influence women’s financial and non-financial empowerment. The former is seen as the power of women to make decisions about spending their own and their spouse’s income and major household purchases. The second is the woman’s power to decide on health-related expenses and visits to relatives. Several other socio-demographic variables were likely to influence women’s empowerment. These include the woman’s household social status, age, labour market participation and religion.
Journal: Applied Economics
Pages: 1049-1062
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174938
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174938
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:9:p:1049-1062

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176448_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: I-Cheng Yeh
Author-X-Name-First: I-Cheng
Author-X-Name-Last: Yeh
Title: Comparisons of residual income model and growth value model
Abstract: 
 Both the Residual Income Model (RIM) and Growth Value Model (GVM) combine the income-based approach and asset-based approach, and blend with the market-based approach, which employs regression analysis and market data to determine parameters in the models. Hence, they have more comprehensiveness than most approaches in the literature. The theoretical and empirical comparisons of RIM and GVM may have profound meaning to stock intrinsic value. The theoretical comparison shows that the ROE-P/B relationship is linear in RIM and power in GVM. When ROE equals the required return rate, whosever P/B is 1.0. When the ROE is small, the P/B estimated by GVM is still greater than 0; however, it may be negative by RIM, which is not reasonable. In a normal range (0 ~ 20%) of ROE, the two curves are rather close to each other. The empirical study showed that the GVM can more reasonablly fit the market data, especially when the ROE is rather small or great.
Journal: Applied Economics
Pages: 1327-1345
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176448
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176448
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:11:p:1327-1345



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176446_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Kyu Hyung Park
Author-X-Name-First: Kyu Hyung
Author-X-Name-Last: Park
Author-Name: Leonie Tickle
Author-X-Name-First: Leonie
Author-X-Name-Last: Tickle
Author-Name: Henry Cutler
Author-X-Name-First: Henry
Author-X-Name-Last: Cutler
Title: How temporal patterns of medication adherence to antidepressants, bisphosphonates and statins are associated with healthcare cost
Abstract: 
 We evaluate benefits of measuring temporal patterns of medication use using group-based trajectory modelling (GBTM) by finding associations between medication adherence (MA) and healthcare costs for which inconsistent results have been reported. We conducted a retrospective cohort study of 9,287, 1,660 and 10,242 users of antidepressants, bisphosphonates and statins, respectively, between 2012 and 2016, who participated in the 45 and Up Study in New South Wales, Australia. Associations between MA and subsequent 1-year healthcare cost components from generalized linear models and two-part models were compared across medications and MA measure types including GBTM and proportion of days covered (PDC). Compared to adherers, antidepressant users with declining adherence showed increased inpatient costs ($643 at p < 0.05). Bisphosphonate users with declining and consistently low adherence showed decreased osteoporotic inpatient costs ($387 at p < 0.05 and $419 at p < 0.05, respectively). All types of nonadherence were associated with reduced cost of the respective medications. GBTM revealed relationships between specific nonadherence types and healthcare costs, even in cases where no relationship was identified using the combined nonadherence PDC measure. With additional insights into the dynamics of nonadherence, GBTM could help clinicians and health policymakers design effective MA interventions, leading to improved health outcomes and pharmaceutical use.
Journal: Applied Economics
Pages: 1283-1308
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176446
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176446
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:11:p:1283-1308



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2175776_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Kangjuan Lv
Author-X-Name-First: Kangjuan
Author-X-Name-Last: Lv
Author-Name: Siwei Zhu
Author-X-Name-First: Siwei
Author-X-Name-Last: Zhu
Author-Name: Ran Liang
Author-X-Name-First: Ran
Author-X-Name-Last: Liang
Author-Name: Ye Zhao
Author-X-Name-First: Ye
Author-X-Name-Last: Zhao
Title: Environmental regulation, breakthrough technological innovation and total factor productivity of firms-- evidence from emission charges of China
Abstract: 
 As an effective means of addressing environmental externalities, market-based environmental regulation inevitably has potential effects on the economy. Based on Porter’s theory, we investigate how emission charges affect firms’ total factor productivity and explore the moderating role of firms’ breakthrough technological innovation. Our findings reveal the moderating effect of breakthrough technological innovation on the total factor productivity enhancement of the emission fee by looking at Chinese A-share listed firms with heavy pollution from 2011 to 2020. Our mechanism tests suggest that emission fees and breakthrough technological innovation increase firms’ total factor productivity by enhancing firms’ green innovation. In addition, our heterogeneity analysis shows that emission charges and breakthrough technology innovation effectively increase total factor productivity only for state-owned firms, and the effect on total factor productivity of non-state-owned firms is insignificant. Our findings suggest that implementing market-based environmental regulations and incentives for firms to embark on breakthrough technological innovation effectively increases firms’ total factor productivity.
Journal: Applied Economics
Pages: 1235-1249
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2175776
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175776
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:11:p:1235-1249



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Derek Asuman
Author-X-Name-First: Derek
Author-X-Name-Last: Asuman
Author-Name: Ulf-G. Gerdtham
Author-X-Name-First: Ulf-G.
Author-X-Name-Last: Gerdtham
Author-Name: Ann I. Alriksson-Schmidt
Author-X-Name-First: Ann I.
Author-X-Name-Last: Alriksson-Schmidt
Author-Name: Martin Nordin
Author-X-Name-First: Martin
Author-X-Name-Last: Nordin
Author-Name: Johan Jarl
Author-X-Name-First: Johan
Author-X-Name-Last: Jarl
Title: Labour market consequences of an early-onset disability: the case of cerebral palsy
Abstract: 
 The labour market consequences of early-onset or congenital disabilities have received little attention in the literature. In this paper, we study the consequences of cerebral palsy (CP), a lifelong early onset disability, and pathways through which it affects labour outcomes. We use data from multiple linked Swedish National Population Registers between 1990 and 2015 and apply both regression and mediation analysis. Our results show, as expected, strong negative consequences of CP on labour outcomes, and that the consequences have increased over time. The social insurance system, we find, compensates for some of the losses through non-work-related benefits. The results also suggest that the direct effects of CP per se have prominent impact on labour market outcomes. Thus, given the same level of mediators, persons with CP will have lower labour outcomes compared to persons without CP. Our results draw attention to the widening labour market consequences of CP in Sweden.
Journal: Applied Economics
Pages: 1309-1326
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176447
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176447
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:11:p:1309-1326



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2175775_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Lauren Calimeris
Author-X-Name-First: Lauren
Author-X-Name-Last: Calimeris
Author-Name: Christina Peters
Author-X-Name-First: Christina
Author-X-Name-Last: Peters
Title: Evidence on birth spacing and child cognition from Indonesia
Abstract: 
 Research from the medical and social science literature has found that spacing births closely together leads to adverse health and socioeconomic outcomes for the younger child. More recent evidence using inter-family comparisons is challenging the validity of those results. However, while inter-family comparisons allow for time-invariant unobservable heterogeneity across families, they cannot fully control for changes in families that occur over time and may affect both decisions about birth intervals as well as child outcomes. To our knowledge, this paper provides the first examination of the effects of birth spacing on later childhood cognitive outcomes that accounts for both time-invariant and time-varying heterogeneity in the same models. Instrumental variables estimations on data from Indonesia indicate that younger siblings perform significantly better on maths assessment exams when they are spaced farther apart from their immediately older sibling. This effect appears to be concentrated among the poorest and least educated households. The data thus suggest that close spacing may be detrimental to the socioeconomic outcomes of the younger sibling.
Journal: Applied Economics
Pages: 1221-1234
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2175775
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175775
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:11:p:1221-1234



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2175777_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Michiel Bijlsma
Author-X-Name-First: Michiel
Author-X-Name-Last: Bijlsma
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Author-Name: Nicole Jonker
Author-X-Name-First: Nicole
Author-X-Name-Last: Jonker
Title: Not all data are created equal - Data sharing and privacy
Abstract: 
 The COVID-19 pandemic has increased our online presence and unleashed a new discussion on sharing sensitive personal data. Upcoming European legislation will facilitate data sharing in several areas, following the lead of the revised payments directive (PSD2), which enables payments data sharing with third parties. However, little is known about what drives consumers’ data sharing preferences, as these may differ according to the type of data, type of usage or type of firm using the data. Using a discrete-choice experiment among a representative group of Dutch consumers, we find that next to health data, people are hesitant to share their financial data on payments, wealth and pensions, compared to other types of consumer data. Second, consumers are especially cautious about sharing their data when they are not used anonymously. Third, consumers are more hesitant to share their data with BigTechs, webshops and insurers than they are with banks. Fourth, data sharing choices depend on financial rewards. Last, we show that attitudes towards data usage depend on personal characteristics, consumers’ digital skills, online behaviour and their trust in the firms using the data.
Journal: Applied Economics
Pages: 1250-1267
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2175777
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175777
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:11:p:1250-1267



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2175778_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Cesario Mateus
Author-X-Name-First: Cesario
Author-X-Name-Last: Mateus
Author-Name: Irina Mateus
Author-X-Name-First: Irina
Author-X-Name-Last: Mateus
Author-Name: Natasa Todorovic
Author-X-Name-First: Natasa
Author-X-Name-Last: Todorovic
Title: Searching for mutual fund winners? the strategy is to outbid both, the benchmark and the peer group
Abstract: 
 Standard Fama-French-Carhart models define ‘winners’ as funds that generate the highest excess returns given the factor risks involved; however, they do not provide information on whether such winners are outperforming their prospectus benchmark or their peer group. In addition, existing literature relying on these models, by and large, does not find evidence of persistence in performance. In this paper, we propose a two-stage procedure that allows investors to select ‘true’ winners(losers) which generate the highest factor-risk-adjusted performance relative to the benchmark and the peer group simultaneously. Utilizing both adjustments at the same time results in a strong predictive ability, leading to a selection of funds that persist in performance. Our true winner funds have statistically significant superior benchmark-adjusted alphas, peer group adjusted alphas and Sharpe ratios one year ahead, which are significantly different from those generated by the true loser funds. The results are robust to extended investment horizon, and alpha estimation method, and they are not driven by outliers, size of fund-sorts, or any particular period within our sample.
Journal: Applied Economics
Pages: 1268-1282
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2175778
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175778
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:11:p:1268-1282

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176450_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Xiaofang Jia
Author-X-Name-First: Xiaofang
Author-X-Name-Last: Jia
Author-Name: Baojian Xie
Author-X-Name-First: Baojian
Author-X-Name-Last: Xie
Author-Name: Xingan Wang
Author-X-Name-First: Xingan
Author-X-Name-Last: Wang
Title: The impact of network infrastructure on enterprise digital transformation ——A quasi-natural experiment from the “broadband China” Strategy
Abstract: 
 In this paper, a multi-period difference-in-difference model is constructed to investigate the impact of network infrastructure on enterprise digital transformation. The results show that network infrastructure has effectively promoted the digital transformation of enterprises. Meanwhile, as the scale of network infrastructure construction expands, the role of network infrastructure in promoting enterprise digital transformation will be enhanced. Based on the mechanism analysis, network infrastructure promotes enterprise digital transformation through two channels: easing corporate financing constraints and improving core technical capabilities. Furthermore, the role of network infrastructure in enterprise digital transformation is not invariable, the effect is more pronounced in non-state-owned enterprises, growth enterprises, manufacturing enterprises, and enterprises located in developed cities.
Journal: Applied Economics
Pages: 1363-1380
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176450
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176450
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1363-1380



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2257033_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Di Gong
Author-X-Name-First: Di
Author-X-Name-Last: Gong
Author-Name: Shiwei Hu
Author-X-Name-First: Shiwei
Author-X-Name-Last: Hu
Author-Name: Zongxin Qian
Author-X-Name-First: Zongxin
Author-X-Name-Last: Qian
Title: Banking crises and exporter dynamics
Abstract: 
 This article examines the effects of systemic banking crises on exporter dynamics using exporter data at the country-industry level from the Exporter Dynamics Database (EDD). By considering industries with varying levels of external finance dependence, we are able to capture the heterogeneous impacts of banking crises. Our results demonstrate that banking crises lead to a decrease in the number of successful market entries, a reduction in export market concentration, and a slowdown in both product dynamics and destination dynamics. These findings are robust when accounting for other financial crises, industry characteristics, and potential endogeneity concerns. Overall, our empirical evidence confirms the detrimental impact of banking crises on the extensive margin of exports.
Journal: Applied Economics
Pages: 1463-1487
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2257033
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2257033
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1463-1487



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176449_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yun Jung Kim
Author-X-Name-First: Yun Jung
Author-X-Name-Last: Kim
Author-Name: Mei Quan
Author-X-Name-First: Mei
Author-X-Name-Last: Quan
Title: Financing the R&D investment of Chinese firms: state-owned versus private firms
Abstract: 
 We investigate the effect of financing constraints on the R&D investment of Chinese listed firms for the period 2010–2020. The sample is divided into state-owned versus private firms, which differ substantially in R&D patterns, financial structures, and other characteristics. We find that, in both state-owned and private firms, internal cash flow significantly affects R&D investment, suggesting the presence of binding financing constraints. Both state-owned and private firms actively manage liquid assets to smooth R&D spending. Debt finance is insignificant for both state-owned and private firms. New stock issues have a significant positive effect on R&D in private firms only, not in state-owned firms. Given that the contribution of private firms to aggregate R&D is increasing, stable stock market conditions may have an important aggregate impact on R&D.
Journal: Applied Economics
Pages: 1347-1362
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176449
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176449
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1347-1362



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176453_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Bing Liu
Author-X-Name-First: Bing
Author-X-Name-Last: Liu
Author-Name: Lihong Zhang
Author-X-Name-First: Lihong
Author-X-Name-Last: Zhang
Author-Name: Ming Zhou
Author-X-Name-First: Ming
Author-X-Name-Last: Zhou
Title: Portfolio selections for insurers with ambiguity aversion: minimizing the probability of ruin
Abstract: 
 In this paper, we investigate the impacts of model misspecification on the insurer’s investment behaviours. Model misspecification comes from either the financial market or insurance business due to economic fluctuation. From the risk control point of view, we assume that an insurer has ambiguity aversion and we study the robust optimal investment strategy for the insurer under several settings. As a benchmark, we firstly obtain the optimal investment strategy for the insurer without considering model misspecification. Then, by assuming that model misspecification only exists in the financial market, we obtained the robust optimal investment strategy by solving the corresponding Hamilton–Jacobi–Bellman (HJB) equation under the objective of minimizing the probability of ruin. The results tells us the insurer’s ambiguity aversion leads to a more conservative investment behaviour. At last, we incorporate the model misspecification for both financial market and insurance business in a general framework. The robust optimal investment is also obtained and we find that the investment is enlarged due to the insurer’s ambiguity aversion on the insurance business because of the motivation of ambiguity hedging. The numerical examples display that different ambiguity aversion level on the financial market and insurance business have different impacts on the robust investment strategy.
Journal: Applied Economics
Pages: 1423-1439
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176453
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176453
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1423-1439



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ana Rita Gomes
Author-X-Name-First: Ana Rita
Author-X-Name-Last: Gomes
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Author-Name: Paulo B. Vasconcelos
Author-X-Name-First: Paulo B.
Author-X-Name-Last: Vasconcelos
Title: Impact of refugees on wages and economic growth in a model with inflation
Abstract: 
 This paper assesses how the influx of skilled and unskilled refugees affects the technological-knowledge-bias and, consequently, the skill premium in host communities, looking in particular at the case of Poland following the war in Ukraine. We use a dynamic endogenous R&D general equilibrium model, in which labour endowments are related to the direction (or bias) of technological knowledge, which in turn drives the dynamics of key economic variables. With price channel dominance, the shock of the war causes an increase in the technological-knowledge-bias and thus the skills premium, given the increased supply of unskilled labour. Fiscal policy, driven by country governments and materialized through direct and indirect subsidies to R&D activity, has stronger effects on the growth rate when applied to unskilled workers. Monetary policy, driven by the central bank through a decline in the nominal interest rate, influences R&D activity through liquidity constraints and is limited by the zero nominal interest rate. To promote competitiveness and growth, a fiscal policy that subsidizes unskilled workers must be promoted.
Journal: Applied Economics
Pages: 1381-1407
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176451
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176451
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1381-1407



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Thiago Christiano Silva
Author-X-Name-First: Thiago Christiano
Author-X-Name-Last: Silva
Author-Name: Rodrigo Batista de Araújo
Author-X-Name-First: Rodrigo Batista de
Author-X-Name-Last: Araújo
Author-Name: Benjamin Miranda Tabak
Author-X-Name-First: Benjamin Miranda
Author-X-Name-Last: Tabak
Title: Real effects of direct cash transfers shocks: evidence from one of the largest social welfare programs in the world
Abstract: 
 We examine the socio-economic consequences in Brazilian municipalities of one of the world’s largest social welfare programmes – the Bolsa Família. Since the Bolsa Família endogenously targets municipalities with weaker local socio-economic conditions, it becomes challenging to reason about its causal effects on the local economy. We address this endogeneity by exploiting a change in the Bolsa Família regulation in 2012 that established a minimum per capita income of 70 reais for recipient families. Previously, additional financial benefits were available based on the number of children in the family, up to five. Following the change, large families effectively received a positive income shock. We investigate this discontinuity by comparing recipient families of different sizes with income nearing the 70 reais per capita threshold shortly before the shift at the municipality level. Municipalities’ employment, income, and health metrics show consistent and positive results. However, we find no effect on education, which could be explained by the lack of robust education-related conditionalities that Bolsa Família recipients are required to report continuously to enjoy the programme’s benefits.
Journal: Applied Economics
Pages: 1408-1422
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176452
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176452
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1408-1422



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Pratik Goel
Author-X-Name-First: Pratik
Author-X-Name-Last: Goel
Author-Name: Oveis Madadian
Author-X-Name-First: Oveis
Author-X-Name-Last: Madadian
Title: Peer-based performance comparison and tone management
Abstract: 
 While performance comparison against peers is documented as a key decision-making factor in strategic management, its potential role as a strategic determinant of disclosure tone has so far been overlooked in the literature on narrative disclosures. In this study, we examine whether, and how, peer-based performance comparison (i.e. the comparison of earnings/cash flows of a firm with its peers) affects tone management. Using a measure of tone management based on 10-K filings over 1993–2013, we show that firms with performance falling below the peer-based benchmark engage in greater downward tone management in their earnings-related narrative disclosures, and the extent of this over-pessimism increases the further performance falls below the benchmark. We further document that the observed over-pessimism not only prompts security analysts to revise their earnings forecasts downward, but it is also associated with a higher probability of meeting or beating these forecasts (i.e. expectation management). This is the first study that links tone management with expectation management, in the context of peer-based performance comparison.
Journal: Applied Economics
Pages: 1440-1462
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176454
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176454
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1440-1462

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Qingsong Ruan
Author-X-Name-First: Qingsong
Author-X-Name-Last: Ruan
Author-Name: Jiarui Zhang
Author-X-Name-First: Jiarui
Author-X-Name-Last: Zhang
Author-Name: Dayong Lv
Author-X-Name-First: Dayong
Author-X-Name-Last: Lv
Title: Forecasting exchange rate volatility: is economic policy uncertainty better?
Abstract: 
 Economic policy uncertainty (EPU) reflects more information related to exchange rate volatility than traditional macroeconomic variables do, and thus may have stronger predictive power in forecasting exchange rate volatility. Based on data from developed and developing economies (including Japan, the United Kingdom, the Euro Area, Brazil, the Russian Federation, India, and China), this paper provides in- and out-of-sample evidence that the EPU differential between two economies outperforms several macroeconomic predictors (for example, GDP growth and volatility of inflation growth) in forecasting exchange rate volatility, which is also supported by a Monte Carlo experiment. Moreover, the mechanism analysis shows that increased EPU differential is associated with increased foreign exchange trading activities and reduced bilateral trade, which helps explain the predictive power of EPU for exchange rate volatility. Furthermore, we find that EPU can predict both long- and short-run components of exchange rate volatility. Our main findings are robust after using alternative empirical proxies or controlling for endogeneity.
Journal: Applied Economics
Pages: 1526-1544
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176457
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176457
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:13:p:1526-1544



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ling Feng
Author-X-Name-First: Ling
Author-X-Name-Last: Feng
Author-Name: Jun Zhang
Author-X-Name-First: Jun
Author-X-Name-Last: Zhang
Title: Can state-owned enterprises enhance enterprise value when they shift focus to core businesses? Empirical evidence on the transfer of ‘three supplies and one industry’ in China
Abstract: 
 This research theoretically analysed how corporate value is enhanced when Chinese state-owned enterprises (SOEs) shift their focus. In our analysis of Chinese SOEs listed in A-shares from 2013 to 2019, we describe their process of returning to their primary business using the ‘three supply and one industry’ (3S1I) handover policy. We conducted a quasi-natural experiment to study whether refocusing on SOEs can improve their value. The research shows that the policy enhances the efficiency of SOEs, thus increasing their value. These results were particularly evident among local SOEs. Moreover, SOE employees’ social responsibility performance may have a negative moderating effect on efficiency, indicating that excessive social responsibility can lead to a loss in efficiency and a reduction in SOE value. We conclude by discussing why SOEs should prioritize improving economic value and then fulfil social responsibilities to enhance social value through social purchasing and other ways. This study contributes to the literature by providing recommendations on improving the value of SOE from the perspective of ‘transferring 3S1I’ and refocusing.
Journal: Applied Economics
Pages: 1595-1609
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176461
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176461
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:13:p:1595-1609



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176456_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ki Wook Kim
Author-X-Name-First: Ki Wook
Author-X-Name-Last: Kim
Author-Name: Tae Sup Shim
Author-X-Name-First: Tae Sup
Author-X-Name-Last: Shim
Author-Name: Ji Seon Yoo
Author-X-Name-First: Ji Seon
Author-X-Name-Last: Yoo
Title: Can Ethics and Economic Incentives Mitigate Tax preparers’ Aggressive Judgements and Decisions?
Abstract: 
 We examine whether the personal attribute of ethics and an external economic incentive in the form of a standard tax preparation fee can mitigate tax preparers’ aggressive tax reporting behaviour. We use a structural equation model (SEM) to identify the influential paths of ethics and economic incentives on the aggressiveness of tax preparers. Based on the results of a quasi-experiment involving tax preparers in Korea, we find that ethical attributes both directly and indirectly mitigate aggressive tax reporting by reducing tax preparers’ fear of client dissatisfaction. We then find that the introduction of a standard tax preparation fee does not directly or indirectly suppress the tax aggressiveness of tax preparers. Our study contributes to an integral examination of the effectiveness of both psychological and economic factors on tax preparers’ judgements and decisions.
Journal: Applied Economics
Pages: 1509-1525
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176456
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176456
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:13:p:1509-1525



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Xinni Cai
Author-X-Name-First: Xinni
Author-X-Name-Last: Cai
Author-Name: Ge Yang
Author-X-Name-First: Ge
Author-X-Name-Last: Yang
Author-Name: Xiaojia Zheng
Author-X-Name-First: Xiaojia
Author-X-Name-Last: Zheng
Title: Does the academic profession really matter in board monitoring? Evidence from individual director voting
Abstract: 
 This study examines the voting behaviour of independent directors from academia based on manually collected voting data. We find that academic independent directors are less likely to dissent on board proposals than other independent directors, especially the directors who have fewer industry-specific experiences or have a relatively higher pay from the focal firm. The academic directors are also more likely to lose board seats after dissension, consistent with their concern of less job security as they are easily replaced. Lastly, although academic directors generally have weaker incentives to vote against insiders, they are more likely to dissent on proposals concerning related-party transactions. Overall, our study sheds new light on the role of academic independent directors in board monitoring effectiveness.
Journal: Applied Economics
Pages: 1564-1580
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176459
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176459
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:13:p:1564-1580



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yanran Wu
Author-X-Name-First: Yanran
Author-X-Name-Last: Wu
Author-Name: Zhongtai Li
Author-X-Name-First: Zhongtai
Author-X-Name-Last: Li
Title: Are active individual investors in mutual funds momentums or contrarians?
Abstract: 
 We use transaction data of active individual investors in mutual funds to examine whether investors are momentum or contrarian by combining binomial distribution with the multinomial logit model. We find that individual investors adopt different trading strategies in making their purchase and redemption decisions, whereby they act as momentum buyers and contrarian sellers. Different fund styles do not affect investors’ trading decisions based on historical returns, and investors’ trading behaviours in value and dividend funds are consistent. After identifying each investor’s trading strategy, we examine the impact of demographics on trading behaviour for the first time. We find that older individual investors in mutual funds are more likely to be momentums, as are those with stock trading experience. Individual investors with large transaction sizes are more likely to be momentum buyers, while investors of small sizes are contrarian. Our research not only helps managers understand the trading behaviour of individual investors but also provides some help to regulators.
Journal: Applied Economics
Pages: 1489-1508
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176455
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176455
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:13:p:1489-1508



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Joshy Jacob
Author-X-Name-First: Joshy
Author-X-Name-Last: Jacob
Author-Name: Nilesh Gupta
Author-X-Name-First: Nilesh
Author-X-Name-Last: Gupta
Author-Name: Balagopal Gopalakrishnan
Author-X-Name-First: Balagopal
Author-X-Name-Last: Gopalakrishnan
Title: Mutual fund asset allocation during COVID-19: evidence from an emerging market
Abstract: 
 The paper examines the investment decisions of Indian equity mutual funds during various stages of the COVID-19 pandemic with monthly portfolio holdings. We find that funds favoured firms with lower risk, higher financial flexibility, and larger size during the early months of the pandemic. The preference for relatively low-risk firms, which reverses later, suggests a reallocation towards safer assets. Funds also preferred growth firms to value firms as the latter with greater invested capital are more vulnerable to the shock. Institutional investors also favoured group-affiliated firms throughout, reflecting their lower crisis vulnerability. We find that the stocks preferred by funds during the pandemic outperform others in the long run. The paper brings out key firm characteristics that impact mutual fund asset allocation during extreme uncertainty.
Journal: Applied Economics
Pages: 1545-1563
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176458
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176458
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:13:p:1545-1563



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Peter Tait
Author-X-Name-First: Peter
Author-X-Name-Last: Tait
Author-Name: Caroline Saunders
Author-X-Name-First: Caroline
Author-X-Name-Last: Saunders
Author-Name: Paul Dalziel
Author-X-Name-First: Paul
Author-X-Name-Last: Dalziel
Author-Name: Paul Rutherford
Author-X-Name-First: Paul
Author-X-Name-Last: Rutherford
Author-Name: Timothy Driver
Author-X-Name-First: Timothy
Author-X-Name-Last: Driver
Author-Name: Meike Guenther
Author-X-Name-First: Meike
Author-X-Name-Last: Guenther
Title: How much less? Estimating price discounts for suboptimal food with environmental and social credence attributes
Abstract: 
 Price discounting strategies for suboptimal food perform an essential part in reducing food waste. This study provides new information empirically estimating discounts for levels of apple injury and deformity consistent with United States Department of Agriculture definitions using a Discrete Choice Experiment with Californian consumers. Latent Class Modelling identifies consumer segments with differing preferences for injury and deformity, alongside social responsibility and environmental claims. While discounts range substantially across segments, levels of deformity negatively influence choices more than equivalent levels of injury. Required discounts can be reduced by the presence of beneficial credence attributes, particularly an organic claim. We find a segment of respondents indifferent to suboptimal characteristics and requiring no discount to select suboptimal apples. These consumers have stronger preferences for environmental and social attributes, are more likely to be female, more educated, younger and concerned about genetic engineering. Preferences for social responsibility claims vary over the targeted beneficiaries, with programmes focused on workers preferred more overall. Willingness-to-pay for greenhouse gas reductions are relatively diminutive; however, 83% of the respondents support at least moderate reductions. This study contributes to understanding behaviours towards suboptimal food and is beneficial to forming food waste reduction strategies by identifying discount levels across consumer types.
Journal: Applied Economics
Pages: 1581-1594
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176460
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176460
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:13:p:1581-1594

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177591_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Irene González-Rodríguez
Author-X-Name-First: Irene
Author-X-Name-Last: González-Rodríguez
Author-Name: Marta Pascual-Saez
Author-X-Name-First: Marta
Author-X-Name-Last: Pascual-Saez
Author-Name: David Cantarero-Prieto
Author-X-Name-First: David
Author-X-Name-Last: Cantarero-Prieto
Title: The changing health convergence for life expectancy and spatial interactions
Abstract: 
 Spatial interactions are important to consider issues like health convergence between the European Union countries and Spanish provinces. Health status is measured by a combination of objective health outcome indicators, such as life expectancy: at birth, at age 65, disability-adjusted life expectancy and healthy life expectancy based on self-perceived health. The period analysed differs from one indicator to another considering 1998–2018. There are two forms of convergence: σ-convergence and absolute β-convergence. Furthermore, the Moran Test is performed to disentangle the degree of spatial dependencies and two models of spatial regression are used to include these dependencies in the absolute β-convergence estimation. Our findings suggest that there is a convergence process among European Union countries and the Spanish provinces. On the other hand, β-convergence is higher in women among European countries and in men for Spanish provinces. Nevertheless, the rise of the dispersion means that there is not clear evidence about trends in the period considered. There are two contributions in our research: to achieve an updated vision of health convergence and to incorporate spatial econometrics in Health Economics research. These insights can help to reduce health inequalities.
Journal: Applied Economics
Pages: 1622-1635
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177591
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177591
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:14:p:1622-1635



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2176463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Ahmed Bossman
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bossman
Author-Name: Najaf Iqbal
Author-X-Name-First: Najaf
Author-X-Name-Last: Iqbal
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Title: Patterns of unconventional monetary policy spillovers during a systemic crisis
Abstract: 
 We examine whether the COVID-19 pandemic-induced systemic shocks cause a change in the dynamics of monetary policy spillovers among developed economies. Results from our analysis under the time-varying parameter vector autoregressive model indicate that: (i) variations in monetary policy actions are explained by monetary policy spillovers; (ii) shocks from the COVID-19 pandemic rocketed monetary policy spillovers; (iii) the Euro area and the US chiefly propagate monetary policy shocks to their counterpart developed economies; and (iv) New Zealand and Japan endure the highest monetary policy shocks. Our results evidence the need for synchronized monetary policy actions during systemic crises.
Journal: Applied Economics
Pages: 1611-1621
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176463
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176463
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:14:p:1611-1621



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177594_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yong Wang
Author-X-Name-First: Yong
Author-X-Name-Last: Wang
Author-Name: Zaheer Anwer
Author-X-Name-First: Zaheer
Author-X-Name-Last: Anwer
Author-Name: Lijun Cheng
Author-X-Name-First: Lijun
Author-X-Name-Last: Cheng
Author-Name: Wangjie Chen
Author-X-Name-First: Wangjie
Author-X-Name-Last: Chen
Author-Name: Yumeng Miao
Author-X-Name-First: Yumeng
Author-X-Name-Last: Miao
Title: Smart manager and investor effects in offshore financial development: the decisive role of cognitive ability on risk preference
Abstract: 
 In the aftermath of first world war, offshore finance has garnered the attraction of various quarters. As of 2010, at least USD 21–32 Trillion of unreported private financial wealth, nearly 18% of the aggregate global wealth, was cantered in tax havens. Financial risk management to prevent offshore financial crisis has become an international concern and widely discussed. We examine the dynamic interrelationship between cognitive ability, risk preference and offshore financial development for a global sample of 44 countries for the period 2001–2017 by using simultaneous equation models. The findings reveal that risk preference, as an informal institute, exerts imperceptible influence on offshore financial development. Moreover, as the cognitive ability affects offshore financial development by way of risk preference, there does exist ‘Smart Managers Effect’ and ‘Smart Investors Effect’ determined by the cognitive ability in Offshore Financial Centres. Moreover, our results vindicate the role of ‘Invisible Hand’ of the market during the tension between markets and governments. The study offers a convincing explanation of the impacting path to risk preference, dominated by cognitive ability, on offshore financial development in offshore financial centres from the perspective of the Institutional Economics.
Journal: Applied Economics
Pages: 1652-1670
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177594
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177594
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:14:p:1652-1670



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2291096_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Seul-Ki Kim
Author-X-Name-First: Seul-Ki
Author-X-Name-Last: Kim
Author-Name: Young-Chul Kim
Author-X-Name-First: Young-Chul
Author-X-Name-Last: Kim
Title: Single-sex vs. Coeducational schooling: an empirical study on the mental health outcomes of middle school students
Abstract: 
 Unlike previous literature that mainly examined the cognitive effects of single-sex education, this study investigates its effects on students’ mental health, focusing on depression, suicide-related behaviours, and the various causes of stress. Utilizing a national-level large-scale dataset of middle school students in South Korea and employing an instrument variable approach, we find that attending single-sex schools reduces the probability of depression in female students by about 9.9% points, while no significant effect is observed for male students. Additionally, our research regarding the causes of stress uncovers that single-sex schooling reduces the stress associated with peer relationships, particularly for girls. These findings imply that the non-cognitive benefits of single-sex education may be stronger than previously thought. As a result, we advocate for a more thoughtful and inclusive implementation of school policies, taking into consideration the impact of gender peer effects at school.
Journal: Applied Economics
Pages: 1689-1704
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2291096
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2291096
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:14:p:1689-1704



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177595_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Toka S. Mohamed
Author-X-Name-First: Toka S.
Author-X-Name-Last: Mohamed
Author-Name: Mohammed M. Elgammal
Author-X-Name-First: Mohammed M.
Author-X-Name-Last: Elgammal
Title: Does the extent of branchless banking adoption enhance the social and financial performance of microfinance institutions?
Abstract: 
 We examine the impact of the extent of branchless banking adoption on the social and financial performance of an international sample of microfinance institutions (MFIs). We find that increasing the number of branchless banking points of service in MFIs is associated with productivity enhancements and improved social outreach. However, this occurs at the expense of adverse credit risk and profitability outcomes. Our results are robust to alternative measures of social and financial performance and the use of multiple methodologies including generalized method of moments, two and three-stage least squares. By introducing a quadratic specification, we unveil a parabolic relationship between the extent of branchless banking adoption and MFIs’ credit risk and profitability, which indicates that positive profitability and risk outcomes can eventually be achieved in MFIs with extensive branchless banking networks. This presents an important contribution to explaining the variations in insight in extant literature. These findings are relevant to policy makers as they indicate that investments in branchless banking present promising outcomes by encouraging financial inclusion, enhancing productivity and efficiency, and improving long-term profitability and repayment rates among MFIs. However, the initial adversity to profitability and credit risk may be a sufficient deterrent from BB investments for financially-oriented MFIs.
Journal: Applied Economics
Pages: 1671-1688
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177595
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177595
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:14:p:1671-1688



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177592_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Luan Thanh Nguyen
Author-X-Name-First: Luan Thanh
Author-X-Name-Last: Nguyen
Author-Name: Shyama Ratnasiri
Author-X-Name-First: Shyama
Author-X-Name-Last: Ratnasiri
Author-Name: Liam Wagner
Author-X-Name-First: Liam
Author-X-Name-Last: Wagner
Title: Industrial energy efficiency and determinants in Vietnam: A stochastic frontier analysis using firm-level data
Abstract: 
 In this study, we employ the Shephard energy distance function to evaluate the impacts of three broad aspects (i) government involvement, (ii) firm’s managerial behaviour and (iii) technology adoption on energy (in)efficiency. Using a true fixed-effect model with a firm-level dataset of eight major industries in Vietnam from 2011 to 2016, the results suggest that these three aspects influence energy efficiency at varying degrees. The novel finding is that government involvement in business improves energy efficiency in less efficient industries. Furthermore, import activities negatively impact energy efficiency while the quality of labour increases efficiency. However, production expansion investment worsens the energy inefficiency situation.
Journal: Applied Economics
Pages: 1636-1651
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177592
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177592
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:14:p:1636-1651



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2305621_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Fábio A. R. Gomes
Author-X-Name-First: Fábio A. R.
Author-X-Name-Last: Gomes
Author-Name: Lívia C. M. Melo
Author-X-Name-First: Lívia C. M.
Author-X-Name-Last: Melo
Author-Name: Gian Paulo Soave
Author-X-Name-First: Gian Paulo
Author-X-Name-Last: Soave
Title: Flexible markov-switching models with evolving regime-specific parameters: an application to Brazilian business cycles
Abstract: 
 This article develops a flexible class of Markov-switching models in which the GDP growth rate is decomposed into a long-run growth trend and evolving regime-dependent means. The models can account for multiple regimes, breaks in the long-run trend, stochastic volatility, and time-varying transition probabilities. They can also handle data outliers that may arise from rare events, such as the COVID-19 crisis. We illustrate our methodology by modelling Brazilian GDP growth, which has exhibited complicated dynamics over the past four decades. Our results suggest two regimes, one long-run trend break, significant time variation in volatility, and the presence of outliers. Moreover, the selected model features time-varying transition probabilities driven by domestic variables (fiscal stance, reserves, and the real interest rate). Significantly, our findings indicate a marked decline in Brazil’s long-run growth in recent years.
Journal: Applied Economics
Pages: 1705-1722
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2024.2305621
File-URL: http://hdl.handle.net/10.1080/00036846.2024.2305621
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:14:p:1705-1722

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177600_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Shilin Li
Author-X-Name-First: Shilin
Author-X-Name-Last: Li
Author-Name: Tongtong Li
Author-X-Name-First: Tongtong
Author-X-Name-Last: Li
Author-Name: Jinhong Wang
Author-X-Name-First: Jinhong
Author-X-Name-Last: Wang
Author-Name: Jinqiang Yang
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Yang
Title: Implications of pandemic shocks in the production economy
Abstract: 
 This paper introduces the SIS epidemic model into a production-based economy. We study the asset pricing implications of the interaction between COVID-19’s shock and mitigation policy for the production economy. The mitigation policy could hinder the consumption, while it will prompt an investment slump. The results indicate some trade-offs between mitigating the transmission of the pandemic and economic output varying with different uncertainty of the pandemic. Notably, the risk premium and growth of capital value present an inverse hump-shape with the infection rate.
Journal: Applied Economics
Pages: 1801-1816
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177600
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177600
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:15:p:1801-1816



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177596_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Sauveur Giannoni
Author-X-Name-First: Sauveur
Author-X-Name-Last: Giannoni
Author-Name: Sylvain Petit
Author-X-Name-First: Sylvain
Author-X-Name-Last: Petit
Author-Name: Louinord Voltaire
Author-X-Name-First: Louinord
Author-X-Name-Last: Voltaire
Author-Name: Philippe Chagnon
Author-X-Name-First: Philippe
Author-X-Name-Last: Chagnon
Author-Name: Jean Ralph Marvensky Paul
Author-X-Name-First: Jean Ralph Marvensky
Author-X-Name-Last: Paul
Title: Adoption of Covid-19 safety certification and pricing strategy in the hotel industry
Abstract: 
 The tourism sector has voluntarily undertaken several initiatives to boost customer confidence in response to the COVID-19 pandemic. For example, in the hotel industry, three different strategies have been implemented: sending no COVID-19 safety signal; sending a moderate signal through a charter; or sending a strong signal through a label. This study aims to identify the main drivers of the hotels’ choice among these strategies and to analyze the influence of their choice on price setting. We estimate a system of three equations (hotel pricing, star rating, COVID-19 safety signal) on a sample of 418 rated hotels in the Hauts-de-France region. Results support three main findings: 1) star rating positively correlates with COVID-19 certification; 2) COVID-19 certification has a strongly negative impact on hotel prices; 3) star rating moderates positively the effect of COVID-19 certification on prices. Furthermore, error terms between the star rating level and COVID-19 certification equations are strongly correlated. Hence unobserved common factors play a role in the adoption of these quality signals. Our findings are consistent with the idea that managers implementing safety signaling strategies are more worried about recovery speed after lockdowns.
Journal: Applied Economics
Pages: 1723-1747
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177596
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177596
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:15:p:1723-1747



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2301221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Huiming Zhang
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhang
Author-Name: Zhen Ma
Author-X-Name-First: Zhen
Author-X-Name-Last: Ma
Author-Name: Siji Qian
Author-X-Name-First: Siji
Author-X-Name-Last: Qian
Title: The market efficiency analysis of China’s copper options based on risk-free arbitrages
Abstract: 
 This paper probes into the market efficiency and relevant issues of copper options, the first industrial options product launched in China and currently the only non-ferrous metals option. Since its listing on 21 September 2018, the copper options market, developing on the fast track, has become the largest copper options market in the world, and thus it is of important meaning to study its market efficiency. Taking the data of China’s copper options market from its debut to 30 April 2022 as a sample, this paper studies the efficiency of this market using three typical risk-free arbitrages such as put-call-future parity arbitrage, box spread arbitrage, and boundary arbitrage strategies. To better reflect the actual situation, this paper, when establishing options arbitrage strategy models, not only took into account various actual trading factors such as transaction costs, market impact costs, liquidity costs, margin, and capital opportunity costs but also combined daily and high-frequency data to present highly practical arbitrage strategies. According to empirical results, there are few arbitrage opportunities with a very low proportion when actual trading factors were considered. Overall, no evidence was found to prove that China’s copper options market significantly violates the market efficiency rule.
Journal: Applied Economics
Pages: 1834-1862
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2301221
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2301221
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:15:p:1834-1862



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177601_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Mingyong Lai
Author-X-Name-First: Mingyong
Author-X-Name-Last: Lai
Author-Name: Jiayu Fang
Author-X-Name-First: Jiayu
Author-X-Name-Last: Fang
Author-Name: Rui Xie
Author-X-Name-First: Rui
Author-X-Name-Last: Xie
Title: Does regional innovation policy encourage firm indigenous innovation? Evidence from a quasi-natural experiment of the pilot project of innovative cities in China
Abstract: 
 Whether regional innovation policy can stimulate firms’ indigenous innovation is an essential issue of common concern for policymakers and scholars. Treating the pilot project of innovative cities as a quasi-natural experiment and using firm-level data from 2006 to 2013, this paper employs the difference-in-differences method to quantify the influence of innovative cities’ policy on enterprise indigenous innovation. We found that the innovative city pilot policy significantly stimulates firms’ indigenous innovation and this impact is heterogeneous at the industry and firm levels. In terms of industry heterogeneity, the innovative city pilot policy increases the number of patent filings in industries with high capital intensity; in terms of firm heterogeneity, the innovative city pilot policy stimulates the number of patent filings in both large and non-SOE enterprises. This policy mainly promotes high-quality indigenous innovation in firms. The test of the impact mechanism reveals that government subsidy and market competition are critical paths through which innovation city pilot policy influence enterprises’ indigenous innovation activities. The research in this paper reveals the micro effects of regional innovation policy and points out the direction for further promoting innovation city pilot work and formulating regional innovation policy.
Journal: Applied Economics
Pages: 1817-1833
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177601
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177601
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:15:p:1817-1833



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Kelvin Mulungu
Author-X-Name-First: Kelvin
Author-X-Name-Last: Mulungu
Author-Name: Mumbi E. Kimani
Author-X-Name-First: Mumbi E.
Author-X-Name-Last: Kimani
Author-Name: Mare Sarr
Author-X-Name-First: Mare
Author-X-Name-Last: Sarr
Title: Do farmers’ risk preferences remain stable in the face of climatic shocks? Evidence from smallholder farmers in Zambia
Abstract: 
 Smallholder farmers in Africa are vulnerable to changing climatic conditions because of their dependence on rainfed agriculture. Their adaptation strategies, which are critical for food security, are oftentimes influenced by their risk-taking attitude. This study examines whether experiencing climatic shocks (defined here as drought events) shapes farmers’ risk aversion. The study addresses two crucial questions: 1) how do drought events alter risk preferences among smallholder farmers; and 2) how long does the impact last? Using a panel survey from Zambia and high spatial resolution climate data, we infer the average Arrow-Pratt and downside risk aversion coefficients from the moment of the distribution of crop production. We find that, on average, the sampled farmers are risk averse. Furthermore, farmers who experienced a drought in the previous year become more risk averse, while farmers who experienced recurring droughts within the previous three years become even more risk averse. We also find that the effect of climatic shocks on risk preferences is short term, lasting only one year. These results have implications on adaptation to climate change.
Journal: Applied Economics
Pages: 1784-1800
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177599
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177599
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:15:p:1784-1800



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177597_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Audrey Sallenave
Author-X-Name-First: Audrey
Author-X-Name-Last: Sallenave
Author-Name: Jean-Pierre Allegret
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Allegret
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Title: Can governments sleep more soundly when holding international reserves? A banking and financial vulnerabilities perspective*
Abstract: 
 We use a sample of 40 developing and emerging countries over the period 1995–2015 to assess the effectiveness of international reserve holding as a crisis mitigator. We test the relevance of the reserve accumulation decreasing returns assumption by estimating the most recent version of the PSTR model. We find that increasing stocks of international reserves allows domestic authorities to mitigate the negative impacts of financial and banking vulnerabilities on GDP growth rates leading to reject the decreasing returns assumption. This evidence is robust to sensitivity checks.
Journal: Applied Economics
Pages: 1748-1762
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177597
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177597
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:15:p:1748-1762



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177598_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Debdatta Pal
Author-X-Name-First: Debdatta
Author-X-Name-Last: Pal
Title: The Distribution of Commodity Futures: A Test of the Generalized Hyperbolic Process
Abstract: 
 Using daily closing price data spreading over 3 April 1990, to 5 May 2020, this study explores the skewness and excess kurtosis behaviour across energy, metals, and agricultural commodity futures. Subsequently, it compares the fitting of an empirical distribution under normal distribution assumption with those under the Generalized Hyperbolic distribution. The generalized hyperbolic distribution includes Hyperbolic distribution, Variance-Gamma distribution, and Normal Inverse Gaussian distribution. The results show that the Normal Inverse Gaussian distribution for natural gas, gold, platinum, copper, sugar, and feeder cattle futures captures skewness as well as excess kurtosis of the daily logarithmic returns. The findings are robust to the sub-sample analysis.
Journal: Applied Economics
Pages: 1763-1783
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177598
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177598
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:15:p:1763-1783

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2178626_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Author-Name: Sayed Saghaian
Author-X-Name-First: Sayed
Author-X-Name-Last: Saghaian
Author-Name: Michael Reed
Author-X-Name-First: Michael
Author-X-Name-Last: Reed
Title: Investigation of export-driving forces and trade potentials of the U.S. bourbon whisky industry
Abstract: 
 Bourbon whisky is one of the world’s most popular spirits and is a vital component of U.S. spirits exports. Yet, very limited research has examined the trade patterns of U.S. bourbon whisky. The purposes of this paper lie in (i) filling a void in the literature about the driving forces behind U.S. bourbon whisky exports, especially justifying the impact of geographical indications and trade disputes, and (ii) examining global and regional trade efficiency and trade potential of U.S. bourbon whisky, considering consumer preferences. This study adopts the stochastic frontier gravity model and trade inefficiency model to analyze bourbon trade patterns between the U.S. and its primary bourbon trade partners over 1990–2019. Results reveal that economic size, income level, trade facilitation, common language and the weighted share of adults who drink in the importing country are important factors in boosting bourbon trade flows. As expected, U.S. bourbon’s geographical indication is playing a significant role in boosting bourbon exports. Trade disputes between the U.S. and its trading partners are found to have significantly negative impacts on U.S. bourbon exports. Our research also reveals that U.S. bourbon whisky has great potential to reach markets throughout the world, particularly in Europe, North America and Oceania.
Journal: Applied Economics
Pages: 1950-1970
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178626
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178626
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1950-1970



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2311064_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Aleksandr Grigoryan
Author-X-Name-First: Aleksandr
Author-X-Name-Last: Grigoryan
Author-Name: Knar Khachatryan
Author-X-Name-First: Knar
Author-X-Name-Last: Khachatryan
Author-Name: Pundarik Mukhopadhaya
Author-X-Name-First: Pundarik
Author-X-Name-Last: Mukhopadhaya
Title: Effectiveness of the main national pro-poor targeted program in Armenia: evidence from the period 2004–2018
Abstract: 
 Using the Armenian Household Survey data for 2004–2018 this study explores the causal effect of family benefits, the country’s main poverty targeted program, on multidimensional and monetary poverty. We find that only 40% of the total fund of this targeted program reaches the severe multidimensional poor households. Our regression estimation based on bias-corrected dynamic panel data models reveals that an increase in the proportion of households receiving family benefits mostly results in a decrease in the incidence of severe multidimensional poverty. However, it has no significant effect on moderately poor households and those who are vulnerable to poverty. This program significantly benefits only those households who are poor in terms of their health expenditure. We further observe that the impact of these benefits is significant on extreme monetary poor but the effect is inconclusive on those who live below the national upper poverty line. Our findings suggest that in the current development stage of the country the targeted poverty programs should focus on enhancing capabilities and human capital development. Also, to address the social assistance coverage gap, the government needs to enhance incentive mechanisms for the main actors in the social protection system.
Journal: Applied Economics
Pages: 1971-1989
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2024.2311064
File-URL: http://hdl.handle.net/10.1080/00036846.2024.2311064
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1971-1989



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177603_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Wei-Wei Zhang
Author-X-Name-First: Wei-Wei
Author-X-Name-Last: Zhang
Author-Name: Linyan Fan
Author-X-Name-First: Linyan
Author-X-Name-Last: Fan
Title: Mixed-gender analyst team and accuracy of earnings forecast: evidence from China
Abstract: 
 We examine the effect of analyst teams’ gender diversity on the accuracy of their earnings forecasts. We find that, compared with single-gender analyst teams, mixed-gender analyst teams generate more accurate earnings forecasts and have less optimism bias. The desirable effect of mixed-gender analyst teams on the accuracy of earnings forecasts is more significant in the highly educated or experienced analyst teams, in smaller brokerages with fewer star analysts, and in firms audited by non-Big -Four accounting firms or with less analyst coverage. Further studies find that, female analysts who work in teams produce more accurate earnings forecasts than they work individually. In addition, when a single-gender analyst team transforms into a mixed-gender analyst team, its reports have more accuracy and less optimism bias than before, and vice versa.
Journal: Applied Economics
Pages: 1885-1898
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2177603
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177603
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1885-1898



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Veasna Kheng
Author-X-Name-First: Veasna
Author-X-Name-Last: Kheng
Author-Name: Justin Mckinley
Author-X-Name-First: Justin
Author-X-Name-Last: Mckinley
Author-Name: Lei Pan
Author-X-Name-First: Lei
Author-X-Name-Last: Pan
Title: The decline of labour share in OECD and non-OECD since the 1980s
Abstract: 
 This paper examines the causes of falling labour share in OECD and non-OECD countries since the 1980s by using Karabarbounis and Neiman’s (2014) labour share model. While both groups of countries experience an elasticity of substitution between capital and labour, the factors driving down labour share are different. In OECD countries, export and volatility are key drivers, but in non-OECD countries, the significant factors are financial openness and the capital’s relative price. Overall, technological advancement – as reflected by declining capital’s relative price – coupled with globalization and low economic risk are key factors in explaining a long-term decline of labour share worldwide.
Journal: Applied Economics
Pages: 1899-1915
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2177604
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177604
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1899-1915



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2177602_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Gianni Carvelli
Author-X-Name-First: Gianni
Author-X-Name-Last: Carvelli
Title: Exogenous variations in public debt and the private output: addressing country heterogeneity and cross-sectional dependence in a large panel
Abstract: 
 Using projections from the IMF’s World Economic Outlook (WEO) database, we explore the links between public debt and the private sector by estimating the response of private output to debt shocks – defined as debt forecast errors. We address several econometric issues through a flexible dynamic panel framework that accommodates slope heterogeneity of the coefficients and cross-sectional dependence. The overall results suggest that positive shocks in public debt are detrimental to the dynamics of private output. Nevertheless, the effect becomes neutral if countries have followed a pattern of fiscal consolidation over the previous five years. The estimates at individual-level are consistent with the general findings, except for a small group of countries. For instance, a positive and significant effect of debt emerges only for one advanced country and seven emerging economies. Although high levels of indebtedness are associated with a rapid decline in the debt coefficients, a nonlinear effect in the form of a Laffer-type curve appears to be unlikely.
Journal: Applied Economics
Pages: 1863-1884
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2177602
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177602
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1863-1884



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2178625_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: FDA-approved medications for dementia are unlike non-pharmacological interventions as they are counterproductive
Abstract: 
 Recently, a number of non-pharmacological interventions for dementia symptoms were evaluated using cost–benefit analysis (CBA) and found to be both effective and socially worthwhile. What is missing is a comparison of evaluations for these interventions with pharmaceutical interventions approved by the Food and Drug Administration (FDA) to see which interventions should be given priority in public expenditure budgets aiming to reduce dementia symptoms. This paper fills this knowledge gap by carrying out a CBA of FDA-approved medications using a large national data set provided by the National Alzheimer’s Coordinating Center (NACC). We find that the pharmaceutical medications were actually counterproductive, and therefore social welfare would be substantially improved by not investing in these medications. This therefore means that non-pharmaceutical interventions should be given higher priority at this time.
Journal: Applied Economics
Pages: 1935-1949
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178625
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178625
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1935-1949



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2178624_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Sebastian A. Gehricke
Author-X-Name-First: Sebastian A.
Author-X-Name-Last: Gehricke
Author-Name: Xinfeng Ruan
Author-X-Name-First: Xinfeng
Author-X-Name-Last: Ruan
Author-Name: Jin E. Zhang
Author-X-Name-First: Jin E.
Author-X-Name-Last: Zhang
Title: Doing well while doing good: ESG ratings and corporate bond returns
Abstract: 
 The relationship between ESG performance and equity returns has become a popular area of research, but the same is not yet the case for bond returns. In this paper, we explore whether incorporating ESG factors, beyond emissions into the bond portfolio investment process leads to under or out performance. We find that ESG investing in bond portfolios does not lead to over or under performance. In other words, you do not have to ‘pay to do good’. Further, in the period since the Paris agreement, Energy sector bond portfolio returns are positively related to ESG factors. This finding aligns with the theoretical prediction of Pedersen, Fitzgibbons, and Pomorski (2020), namely, that the ESG-return relationship should become positive as investors become more aware of ESG risks and opportunities. Overall, we show that Bond investors can ‘do well while doing good’.
Journal: Applied Economics
Pages: 1916-1934
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178624
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178624
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1916-1934

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2305610_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hangsuck Lee
Author-X-Name-First: Hangsuck
Author-X-Name-Last: Lee
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Author-Name: Jihoon Son
Author-X-Name-First: Jihoon
Author-X-Name-Last: Son
Title: Life-cycle decisions and general equilibrium in the heterogeneous-agent OLG economy
Abstract: 
 This study develops a life-cycle model to predict an overlapping generations economy with heterogeneous agents. In our proposed model, ex-ante heterogeneity includes the work probability, survival rate, subjective discount rate, and intertemporal elasticity of substitution. We observe differences in financial decisions and asset accumulation among heterogeneous agents and calculate equilibrium values of aggregate economic variables, such as consumption and capital. For the numerical analyses, we classify the population into four groups based on labour productivity and gender, and investigate the life-cycle behaviours of heterogeneous agents. Retirees in the male group with low labour productivity and low remaining life expectancy have the highest propensity to consume and the highest consumption elasticity for retirement shock compared to other retirees. Workers with relatively high labour productivity have lower risk adjustment factors, indicating that they are less concerned about retirement risk than less productive workers.
Journal: Applied Economics
Pages: 2089-2108
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2024.2305610
File-URL: http://hdl.handle.net/10.1080/00036846.2024.2305610
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:2089-2108



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2178630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mahama Samir Bandaogo
Author-X-Name-First: Mahama Samir
Author-X-Name-Last: Bandaogo
Author-Name: Emmanuel K.K. Lartey
Author-X-Name-First: Emmanuel K.K.
Author-X-Name-Last: Lartey
Title: Duration of fixed exchange rate regimes: the role of central bank independence
Abstract: 
 Using a comprehensive dataset, this paper estimates a hazard model to examine whether central bank independence matters for the sustainability of fixed exchange rate regimes. The findings suggest that fixed exchange rate regimes are more likely to have a longer duration under more independent central banks; a result that holds true whether an exit from such a regime is orderly or disorderly. Thus, a more independent central bank is more likely to facilitate a more durable fixed exchange rate regime.
Journal: Applied Economics
Pages: 2025-2038
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178630
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178630
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:2025-2038



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2178628_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fidele Eric Sessou
Author-X-Name-First: Fidele Eric
Author-X-Name-Last: Sessou
Author-Name: Christian H.C.A. Henning
Author-X-Name-First: Christian H.C.A.
Author-X-Name-Last: Henning
Title: Conflict and farm inputs investment : can social safety nets have any mitigation effect?
Abstract: 
 This paper examines the impact of armed conflict on the tendency and value of investments in farm inputs. We further investigate whether unconditional cash transfers could stimulate investments in inputs under the context of armed conflict. Using panel data collected in 2014 and 2016 in Mali, we combine the control function approach with the correlated random effect model to address the time-invariant unobserved heterogeneity in non-linear context and the endogeneity problem of conflict variable. We take advantage of the randomized rollout of a national cash transfer program to investigate if there is any differential impact on farm inputs. We find that conflict has a negative and statistically significant impact on the tendency to use and the value of investments on fertilizers, pesticides and machinery. Interestingly, we find a statistically insignificant impact of the cash transfers on farm input investments. From a policy perspective, productive capacities of households cannot be restored by the cash transfers. Rather, a recovery of markets’ operations through the re-establishment of security is a more effective policy measure to increase investments in farm inputs.
Journal: Applied Economics
Pages: 1991-2007
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178628
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178628
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:1991-2007



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2178632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Julián P. Díaz
Author-X-Name-First: Julián P.
Author-X-Name-Last: Díaz
Title: Does dollarization promote trade? Evidence from two recent episodes
Abstract: 
 We quantify the trade-promotion effects of sharing a common currency by examining two recent episodes of official dollarization. To establish causal relationships, while avoiding the methodological criticisms of the previous literature on the issue (endogeneity and heteroskedasticity), we employ a differences-in-differences strategy that compares the pre- and post-dollarization trade flows between the United States and the two dollarizers (Ecuador and El Salvador) with the trade flows between the United States and the dollarizers’ neighbours. We find that the adoption of the dollar did not bring about any significant positive trade effects. Using product-level data we find that, while a few sectors saw positive increases, those instances are scattered and not the norm. Dollarization did not lead to increases in trade of previously non-traded goods either. Finally, we do not find any trade-promotion effects between Ecuador or El Salvador and the other dollarized country in the region (Panama) or between the newly dollarized countries themselves. These findings remain valid after we perform a battery of robustness tests, including PPML estimation.
Journal: Applied Economics
Pages: 2058-2076
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178632
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178632
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:2058-2076



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2178629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mariam Djelassi
Author-X-Name-First: Mariam
Author-X-Name-Last: Djelassi
Title: Training services and repayment performance of micro-borrowers in Tunisia
Abstract: 
 This paper aims to empirically assess the effectiveness of training services on borrowers’ repayment performance in a leading microfinance institution in Tunisia. The two training services analysed are financial education and entrepreneurial coaching. Financial education as basic capital management training does not impact repayment performance. On the other hand, coaching programs to strengthen the technical, managerial, and marketing skills of microentrepreneurs significantly improve repayment performance. These results are obtained through an ordered probit model with endogenous treatment accounting for selection bias and endogeneity problems arising from unobservable factors that influence both the use of training services and repayment quality. These results remain significant after restructuring the sample into more homogeneous borrowers’ groups and confirm the hypotheses of the human capital theory. The determinants of training services are also explored. The findings confirm the importance of integrated microfinance strategies, especially in remote rural areas. Combining microcredit with coaching will empower the poor to foster their entrepreneurial skills, productivity, and thus their repayment ability. This study sheds more light on how microfinance institutions can improve their programs in developing countries, which often suffer from a lack of technical and vocational training, the main handicap for transitioning young people to the labour market.
Journal: Applied Economics
Pages: 2008-2024
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178629
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178629
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:2008-2024



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2178633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Kamil Kladívko
Author-X-Name-First: Kamil
Author-X-Name-Last: Kladívko
Author-Name: Pär Österholm
Author-X-Name-First: Pär
Author-X-Name-Last: Österholm
Title: Analysts versus the random walk in financial forecasting: evidence from the Czech National Bank’s Financial Market Inflation Expectations survey
Abstract: 
 We analyse how financial market analysts’ expectations in the Czech National Bank’s Financial Market Inflation Expectations survey perform relative to the random-walk forecast when it comes to predicting five financial variables. Using data from 2001 to 2022, our results indicate that the analysts are able to significantly outperform the random-walk forecast in terms of forecast precision for the repo rate and Prague Interbank Offered Rate at the one-month forecasting horizon. For the five- and ten-year interest rate swap rates, the random walk significantly outperforms the analysts at both the one-month and one-year forecasting horizons. For the CZK/EUR exchange rate, the random-walk forecast has a lower root mean squared forecast error than that of the analysts’ forecast at the one-month horizon whereas at the one-year horizon the opposite is found; however, none of these differences are statistically significant.
Journal: Applied Economics
Pages: 2077-2088
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178633
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178633
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:2077-2088



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2178631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Can Tang
Author-X-Name-First: Can
Author-X-Name-Last: Tang
Author-Name: Liqiu Zhao
Author-X-Name-First: Liqiu
Author-X-Name-Last: Zhao
Title: Gender Social Norms and Gender Gap in Math: Evidence and Mechanisms
Abstract: 
 In this paper, we explore the roles of gender social norms in explaining the gender gap in maths test scores across the entire distribution. Applying generalized quantile regression models, we show that gender-equal cultural norms eliminate the gender gap in maths scores at the top of the distribution. Moreover, this effect is concentrated among students in the higher grade level. An investigation of the underlying mechanisms shows that girls from more gender-equal regions are less likely to hold maths-specific stereotypes and are likely to receive more attention from maths teachers. Additionally, girls from more gender-equal regions tend to perceive that parents have higher educational aspirations for them and are more confident about their future. Our paper provides compelling evidence that policy initiatives aiming at fostering egalitarian gender norms could serve as powerful tools to alleviate the gender gap in maths at the top of the distribution.
Journal: Applied Economics
Pages: 2039-2057
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178631
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178631
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:2039-2057

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2182407_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Peiran Li
Author-X-Name-First: Peiran
Author-X-Name-Last: Li
Author-Name: Xianghui Yuan
Author-X-Name-First: Xianghui
Author-X-Name-Last: Yuan
Author-Name: Liwei Jin
Author-X-Name-First: Liwei
Author-X-Name-Last: Jin
Title: National team intervention and price efficiency differentiation under the impact of COVID-19
Abstract: 
 This paper examines how the ‘national team’, a direct government investment policy, influences the price efficiency of listed companies in the Shanghai Stock Index (SSE). We find that stocks directly invested in by the national team show greater price efficiency than stocks without direct bailout. We also analyse the impact of the COVID-19 pandemic on this price efficiency differentiation. The data period is divided into two sub-periods, and the results show that the price efficiency of stocks decreased after COVID-19. The reduction in price efficiency is more notable for stocks with direct government investment; the difference observed under national team investment in price efficiency is clearly reduced. Increased pessimistic investor expectations due to the pandemic could explain these changes. Our study provides novel evidence for the policy evaluation of national team intervention and a more detailed explanation about the decrease in financial market efficiency in the post-COVID-19 era.
Journal: Applied Economics
Pages: 2129-2141
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2182407
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2182407
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:18:p:2129-2141



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186360_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Gayathri Giri
Author-X-Name-First: Gayathri
Author-X-Name-Last: Giri
Author-Name: K.S. Nivedhitha
Author-X-Name-First: K.S.
Author-X-Name-Last: Nivedhitha
Author-Name: Hansa Lysander Manohar
Author-X-Name-First: Hansa Lysander
Author-X-Name-Last: Manohar
Title: Can blockchain enabled green bond issuance lead to intent to invest? A moderated mediation model
Abstract: 
 While financial literacy supports enhanced investment decisions, the study of blockchain enabled green bond issuance and its influence on intent to invest has not been investigated to date. To address this research gap, the present study developed a moderated mediation model, based on planned behaviour theory, and organizational information processing theory. This model describes the influence of blockchain enabled green bond issuance on the intent to invest via perceived behavioural control, conditioned by the moderating role of financial literacy. 304 responses were collected to test the hypothesized relationship. The results revealed that perceived behavioural control partially mediates the relationship between blockchain enabled green bond issuance and the intent to invest. Besides, the effect of mediation was discovered to be substantial at higher levels of financial literacy.
Journal: Applied Economics
Pages: 2191-2208
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186360
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186360
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:18:p:2191-2208



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2182406_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Richard Bowen
Author-X-Name-First: Richard
Author-X-Name-Last: Bowen
Title: Score-driven cryptocurrency and equity portfolios
Abstract: 
 This paper discusses whether the Bitcoin exchange-traded fund (ETF), which tracks the value of Bitcoin, improves equity portfolios, by using a robust portfolio performance analysis. The equity portfolio is represented by an ETF that tracks the Standard & Poor’s 500. We use data from a turbulent investment period within the coronavirus pandemic, to study the diversification benefits of Bitcoin. We compare the performances of diverse portfolios composed of both ETFs, which include 40 classical dynamic volatility model-based portfolios and 900 score-driven portfolios. For the score-driven portfolios, the dynamic association is modelled by score-driven Clayton, rotated Clayton, Gumbel, rotated Gumbel and Student’s t copulas. We compare portfolio strategies using the model confidence set test. We find that score-driven portfolios outperform classical volatility model-based portfolios and the equity portfolio. Our results may provide suggestions for cryptocurrency investors on portfolio optimization and may also have policy implications for regulators and policymakers.
Journal: Applied Economics
Pages: 2109-2128
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2182406
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2182406
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:18:p:2109-2128



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2184461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Govinda Timilsina
Author-X-Name-First: Govinda
Author-X-Name-Last: Timilsina
Author-Name: David I. Stern
Author-X-Name-First: David I.
Author-X-Name-Last: Stern
Author-Name: Debasish K. Das
Author-X-Name-First: Debasish K.
Author-X-Name-Last: Das
Title: Physical infrastructure and economic growth
Abstract: 
 The existing literature on the relationship between infrastructure and economic growth is inconclusive. We estimate the effect on GDP of three main categories of infrastructure – transport, electricity, and telecommunications – using data from 87 countries over the period 1992–2017. This study uses more recent data than previous research and includes new types of infrastructure such as mobile phones. Our main estimates use the PMG estimator that allows us to test for the weak exogeneity of the infrastructure variables. The key finding of the study is that an increase in infrastructure, especially electricity generation capacity and telecommunications, has large long-run positive effects on GDP, though the short-run effects are much smaller and are less than zero for roads and railways. Also, the effects of electricity and communication infrastructure are higher relative to the effects of transport infrastructure in developing economies than in industrialized economies.
Journal: Applied Economics
Pages: 2142-2157
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2184461
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2184461
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:18:p:2142-2157



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186356_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tao Ren
Author-X-Name-First: Tao
Author-X-Name-Last: Ren
Author-Name: Xiaotan Zhang
Author-X-Name-First: Xiaotan
Author-X-Name-Last: Zhang
Title: Dose China’s overcapacity-cutting campaign take effect as intended? Evidence from listed manufacturing companies
Abstract: 
 China has implemented overcapacity-cutting actions in the past few years, and this article focuses on the policy effects on the capacity utilization of firms in manufacturing industries. Based on the data from listed firms, this study measures the firm-level capacity utilization in 2011–2020 using a cost function method in translog form. And on this basis, using a difference-in-differences model, the policy effects are empirically verified. Our results suggest that the implementation of the policy from 2016 relatively increased the capacity utilization of firms in targeted industries with serious overcapacity, and the positive impact continues during the 13th Five-Year Plan period. Further, for firms in the steel industry, we find that their capacity utilization was affected more strongly and more persistently since 2016. We see these findings indicate that China’s overcapacity-cutting policy has not only eliminated a large amount of outdated excess capacity but also improved the efficiency of resource utilization for the remaining companies in the target industries.
Journal: Applied Economics
Pages: 2176-2190
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186356
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186356
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:18:p:2176-2190



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2277693_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yue Liu
Author-X-Name-First: Yue
Author-X-Name-Last: Liu
Author-Name: Rong Luo
Author-X-Name-First: Rong
Author-X-Name-Last: Luo
Title: Environmental regulation and outward foreign direct investment: evidence from Chinese firms’ overseas mergers and acquisitions
Abstract: 
 While the literature shows that stricter environmental regulations deter exports and inward foreign direct investment (FDI), few studies examine the impacts on outward FDI, especially for developing countries. In this paper, we analyse this issue in the context of China, which is the largest developing country in terms of FDI. We collect the transaction-level data of all the overseas mergers and acquisitions (M&As) by Chinese firms from 2000 to 2019. For the identification of the causal effect, we exploit the implementation of the Environmental Protection Law in 2015 as a quasi-natural experiment and carry out the difference-in-difference-in-differences analysis (DDD). The results show significant impacts of stricter environmental regulations on outward FDI. When the provincial emission reduction target increases by 10% points, the number of overseas M&A transactions in the high-polluting industries has increased by 32 every year since 2015. Moreover, the investments are more likely towards countries with better environmental protection. This suggests that firms aim at gaining cleaner technologies via M&As rather than transferring pollution abroad.
Journal: Applied Economics
Pages: 2209-2222
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2277693
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2277693
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:18:p:2209-2222



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186355_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mónica Domínguez
Author-X-Name-First: Mónica
Author-X-Name-Last: Domínguez
Author-Name: Juan Aparicio
Author-X-Name-First: Juan
Author-X-Name-Last: Aparicio
Author-Name: Antonio Fonfria
Author-X-Name-First: Antonio
Author-X-Name-Last: Fonfria
Title: The defence economy: an assessment of productivity change in NATO countries
Abstract: 
 The main purpose of this paper is to find the determinants of productivity growth and its evolution over time for 27 North Atlantic Treaty Organization (NATO) countries over the period 2010–2017, with respect to the Global Peace Index. To this end, a production function was estimated for each year using Data Envelopment Analysis (DEA) methodology while the components of efficiency change, technical change, scale efficiency change and productivity change were calculated using the Malmquist Index for determining the change in productivity over time. According to the results obtained, the countries show a variation in productivity with a rising trend of 2%; Albania, Belgium, Croatia, Czech Republic, France, Germany, Greece, Montenegro, Slovenia, Norway and the United Kingdom being the countries where the rise was more intense. Moreover, relative productivity fell in 11 other countries in the period under review. In particular, with regard to efficiency change, the countries improved on average by 0.2%, with Portugal showing the greatest rise and France the smallest. Regarding technical change, it rose on average by 5.2%. Finally, scale efficiency fell on average by 3.3%, with Romania being the most disadvantaged and Portugal the most favoured.
Journal: Applied Economics
Pages: 2158-2175
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186355
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186355
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:18:p:2158-2175

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Shweta Bahl
Author-X-Name-First: Shweta
Author-X-Name-Last: Bahl
Author-Name: Ajay Sharma
Author-X-Name-First: Ajay
Author-X-Name-Last: Sharma
Title: Informality, education-occupation mismatch, and wages: evidence from India
Abstract: 
 This article examines the intertwining relationship between informality and education-occupation mismatch (EOM) and the consequent impact on the workers’ wages. In particular, we discuss two issues — first, the relative importance of informality and EOM in determining wages; and second, the relevance of EOM for formal and informal workers. The analysis reveals that although both informality and EOM are significant determinants of wages, the former is more crucial for a developing country like India. Further, we find that EOM is one of the crucial determinants of wages for formal workers, but it is not critical for informal workers. The study highlights the need for considering the bifurcation of formal-informal workers to understand the complete dynamics of EOM especially for developing countries where informality is predominant.
Journal: Applied Economics
Pages: 2260-2294
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186364
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186364
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:19:p:2260-2294



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186365_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sílvia Carneiro
Author-X-Name-First: Sílvia
Author-X-Name-Last: Carneiro
Author-Name: Pedro Cunha Neves
Author-X-Name-First: Pedro Cunha
Author-X-Name-Last: Neves
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Author-Name: Elena Sochirca
Author-X-Name-First: Elena
Author-X-Name-Last: Sochirca
Title: Meta-analysis: global value chains and employment
Abstract: 
 For most of the past half-century, a significant number of companies have carried out a process of transformation of production chains by offshoring parts, components, or services to other countries. The integration of most economies into global value chains (GVCs) has triggered important impacts on several dimensions of the labour markets. In view of the divergent results reported by the related literature, we conduct a meta-analysis on the effects of GVCs on employment. We find that although the average impact is not statistically different from zero, the impact of GVCs on employment differs significantly according to the countries’ development level, the degree of workers’ qualifications, the types of sectors that are considered, the unit of analysis, and the indicators used to measure GVCs and employment.
Journal: Applied Economics
Pages: 2295-2314
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186365
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186365
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:19:p:2295-2314



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186368_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Abraham Agyemang
Author-X-Name-First: Abraham
Author-X-Name-Last: Agyemang
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Russell Gregory-Allen
Author-X-Name-First: Russell
Author-X-Name-Last: Gregory-Allen
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Title: Cross-listing flows under uncertainty: an international perspective
Abstract: 
 The impact of policy uncertainty on corporate decisions and strategies continues to receive significant interest in recent discussions. As a contribution, this study examines how economic policy uncertainty (EPU) in the domestic and global markets impacts corporate cross-listing decisions. To this end, we employ firm and country-level data from 1990 to 2016 from 13 countries. We implement a Granger Causality, Quantile on Quantile Regression (QQR), and Wavelet Coherence approaches and show that monthly local and global EPU influence the cross-listing decisions of firms, with stronger influence for firms from smaller domestic markets. We suggest that firms from smaller domestic markets seek more cross-listing in the face of high local EPU and reduce or avoid cross-listing during high global EPU periods. Our findings suggest that policy transparency could have important implications for current and future corporate decisions.
Journal: Applied Economics
Pages: 2357-2374
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186368
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186368
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:19:p:2357-2374



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yoshihiro Hamaguchi
Author-X-Name-First: Yoshihiro
Author-X-Name-Last: Hamaguchi
Title: Pollution havens and agglomeration: The effect of globalization and technological spillover
Abstract: 
 The statistical significance of the pollution haven hypothesis remains low. This suggests that some elements may have been overlooked in hypothesis testing. Here, pollution havens due to trade liberalization may depend on the degree of technological spillover. This spillover affects the industrial concentration of polluting firms. Using an agglomeration model with technological spillover, we analysed the effect of transport costs on pollution havens to clarify this relationship. Interactions between an international emission permit trading market and local spillover in innovation bring about the following multiple equilibria: the poverty trap equilibrium leads to similar results in the case of global spillover, where lower transport costs encourage economic growth in addition to relocation from the South to the North. By contrast, equilibrium with a higher concentration of firms leads to the pollution havens hypothesis because decreased transport costs prompt polluting firms to relocate to South with relatively small markets due to the home market effect, leading to lower economic growth. Our findings imply that the type of spillover in innovation (local or global) determines the pollution haven hypothesis. In a global economy, narrowing the North-South technology gap could contribute to eliminating pollution havens.
Journal: Applied Economics
Pages: 2223-2240
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186361
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186361
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:19:p:2223-2240



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hiroshi Fujiki
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Fujiki
Title: Central bank digital currency, crypto assets, and cash demand: evidence from Japan
Abstract: 
 This study surveyed people’s knowledge and use of central bank digital currency (CBDC), crypto asset ownership, and cash demand in Japan. While 4% of the respondents understand CBDC, 10% are willing to use CBDC when available. The demographic characteristics of respondents who understand CBDC are similar to those of crypto asset owners. Average cash demand for day-to-day payment purposes by crypto asset owners is slightly lower than that by nonowners. If CBDC users had similar cash demand to that of crypto asset owners, the introduction of CBDC with attributes similar to crypto assets would not substantially reduce cash demand for day-to-day payment purposes.
Journal: Applied Economics
Pages: 2241-2259
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186362
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186362
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:19:p:2241-2259



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186366_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Stavroula P. Fameliti
Author-X-Name-First: Stavroula P.
Author-X-Name-Last: Fameliti
Author-Name: Vasiliki D. Skintzi
Author-X-Name-First: Vasiliki D.
Author-X-Name-Last: Skintzi
Title: Uncertainty indices and stock market volatility predictability during the global pandemic: evidence from G7 countries
Abstract: 
 This article attempts to examine the predictability of a significant number of uncertainty indices for the G7 stock market volatility based on a Heterogeneous AutoRegressive Realized Volatility (HARRV) model and a combination forecast framework during the global pandemic COVID-19. We include in our analysis the Infectious Disease Equity Market Volatility (IDEMV), the VIX, the Economic Policy Uncertainty (EPU), the Equity Market Volatility (EMV), the Geopolitical risk (GPR) as well as the crude oil futures’ realized volatility. Out-of-sample evidence shows that models incorporating all uncertainty indices improve forecasting performance for most stock markets’ volatility during a long out-of-sample period and also during the coronavirus period. The results are robust using an alternative volatility model, an alternative realized measure and a recursive window analysis. The predictability of the uncertainty indices is also evaluated through risk management and portfolio loss functions and results suggest that the LASSO combination and a HARRV model including all indices are the most profitable for all stock markets during the global pandemic.
Journal: Applied Economics
Pages: 2315-2336
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186366
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186366
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:19:p:2315-2336



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hongshan Ai
Author-X-Name-First: Hongshan
Author-X-Name-Last: Ai
Author-Name: Zhengqing Zhou
Author-X-Name-First: Zhengqing
Author-X-Name-Last: Zhou
Author-Name: Ying Yan
Author-X-Name-First: Ying
Author-X-Name-Last: Yan
Title: The impact of Smart city construction on labour spatial allocation: Evidence from China
Abstract: 
 Recently, the prevalence of information technology represented by ChatGPT has aroused extensive discussions. Does the adoption of information technology lead to massive regional unemployment? It is a crucial and unresolved issue for the government, enterprise employees, and researchers. Combining the 2005–2020 panel and the smart city (SC) construction policy in China, this article employs the difference in differences (DID) method to study the impact of informatization construction on labour spatial allocation. We found that informatization construction significantly attracted labour and improved labour spatial allocation. After the SC construction policy’s implementation, compared with non-SCs, the average increase of SC pilots in the labour force is about 0.78 million people. Besides, stimulating economic growth, improving the environment, and enhancing public services are the mechanisms of the SC construction policy on labour spatial allocation. Furthermore, this policy effect has heterogeneous industry department and category characteristics. The Tertiary and secondary industry department receives a more significant impact.
Journal: Applied Economics
Pages: 2337-2356
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186367
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186367
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:19:p:2337-2356

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186369_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Olivier Beaumais
Author-X-Name-First: Olivier
Author-X-Name-Last: Beaumais
Author-Name: Mireille Chiroleu-Assouline
Author-X-Name-First: Mireille
Author-X-Name-Last: Chiroleu-Assouline
Title: Unaware corporate social responsibility: impact of firm size, motivations and external pressures
Abstract: 
 We explore differences in firms’ attitudes towards corporate social responsibility (CSR). Using a unique dataset covering 8,857 French firms, collected by the National Institute of Statistics and Economic Studies (INSEE), we identify firms conducting conscious CSR and others with effective but unaware CSR activities. We then construct three CSR pillar scores for each firm, using Mokken scale analysis, a form of non-parametric item response analysis. The CSR scores, along with responses to specific questions, allow us to characterize firms that implement conscious or unaware CSR. We then estimate simple probit and count data models to show that a significant share of firms are in fact actually engaged in unaware CSR, with no monotonic size effect. Cooperation with external actors such as NGOs mitigates the effect of firm size on the likelihood of conducting unaware CSR, while the effect of NGO campaigns against large firms is mainly to increase the environmental score of small firms in the same industry.
Journal: Applied Economics
Pages: 2386-2406
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186369
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186369
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:20:p:2386-2406



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2187038_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Bizhe Wang
Author-X-Name-First: Bizhe
Author-X-Name-Last: Wang
Author-Name: Yujie Liu
Author-X-Name-First: Yujie
Author-X-Name-Last: Liu
Title: Calculating regional innovation efficiency and factor allocation in China: the price signal perspective
Abstract: 
 Based on the improved HK model, we use data on Chinese listed companies and incopat invention patents from 2015 to 2020 to estimate the monetary value of invention patents in terms of price signals. We also measure innovation efficiency and resource allocation at the regional level. The results indicate that the average value of each invention patent is 837 900 yuan, with an average value for each enterprise of 23.86 million yuan. Regionally, the eastern region has the highest innovation efficiency, which is 3 and 3.42 times that of the central and western region, respectively. Further, we calculate the results by province and industry and divide them into three types: seeking progress in stability, accelerating catch-up and structural adjustment according to the innovation characteristics, and put forward targeted development plans for different types of province and industry. Finally, we explore the factors influencing innovation efficiency and resource allocation of enterprises in different regions from the aspect of innovation policy and enterprise characteristics. We find that government subsidies can promote the innovation ability of inland enterprises, and enterprises with certain scale and long survival times may have stronger innovation ability.
Journal: Applied Economics
Pages: 2451-2469
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2187038
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2187038
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:20:p:2451-2469



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2187037_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Juan He
Author-X-Name-First: Juan
Author-X-Name-Last: He
Author-Name: Xiaodong Du
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Du
Author-Name: Wei Tu
Author-X-Name-First: Wei
Author-X-Name-Last: Tu
Title: Can corporate digital transformation alleviate financing constraints?
Abstract: 
 Financing constraints present a significant challenge for enterprises. Given China’s push for the integration of digital technology and the real economy, it is crucial to examine the impact of corporate digital transformation on financing. Using data from Chinese A-share listed companies from 2010 to 2019, we construct the digital transformation indicator employing a machine learning approach and find that corporate digital transformation can significantly alleviate financing constraints. The mechanism analysis shows that digital transformation improves corporate financing by reducing information asymmetry and transaction costs on both sides of financing and enhancing corporate performance. Combined with the mechanism analysis, we reveal that digital transformation has a significant effect on the alleviation of financing constraints among firms with private ownership, higher levels of interaction with investors, more developed financial environments and more intermediaries marketed in their locations, higher proportions of highly skilled workers, and better matching of digital technologies used for transformation. We explore micro-level measurement methods of corporate digital transformation, contributes to the literature on the economic consequences of digital transformation, and enriches the research on enterprise responses to financing constraints. The findings have important implications for promoting corporate digital transformation practices and for understanding coping strategies of different firms.
Journal: Applied Economics
Pages: 2434-2450
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2187037
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2187037
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:20:p:2434-2450



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2182405_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Eun Jung Lee
Author-X-Name-First: Eun Jung
Author-X-Name-Last: Lee
Author-Name: Yu Kyung Lee
Author-X-Name-First: Yu Kyung
Author-X-Name-Last: Lee
Author-Name: Ryumi Kim
Author-X-Name-First: Ryumi
Author-X-Name-Last: Kim
Title: Profitability and herding of trade-based pump-and-dump manipulation
Abstract: 
 We use the Korea Stock Exchange’s complete intraday order and trade data in a dataset that identifies individual accounts to examine whether trade-based pump-and-dump manipulators can trade profitably and whether other investors herd after the manipulation. The results show that other investors place more buy orders on stocks with higher manipulative buying volume and that more new investors buy such stocks. We also find that the trade-based pump-and-dump manipulation is profitable on average, both gross and net of transaction costs. Manipulators who have higher trading volume, more experience with manipulation, and less frequent transactions are likely to achieve larger profits. We also find that this type of manipulation is far more pervasive in the emerging market.
Journal: Applied Economics
Pages: 2375-2385
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2182405
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2182405
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:20:p:2375-2385



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186370_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Author-Name: Kai Dang
Author-X-Name-First: Kai
Author-X-Name-Last: Dang
Title: RTAs and firm energy-related carbon emissions: from the perspective of trade creation and trade diversion in intermediates import
Abstract: 
 Regional trade agreements (RTAs) are playing an increasingly crucial role in the current international trade pattern of ebbing globalization, making it increasingly important to comprehensively analyse RTAs’ impacts. Trade creation and trade diversion have been hot-button topics on RTAs since Jacob Viner raised, many scholars had conducted extensive research on their economic impacts, but little is known about their environmental impacts. In this paper, we take the China-ASEAN Free Trade Area (CAFTA) as an example, comprehensively consider the tariff, geographic and temporal dimensions of trade to characterize the proxy variables that identify the two effects. Based on data of Chinese enterprises from 2002 to 2007, we empirically tests the impact of the trade effects on energy-related carbon emissions of enterprises from a fixed-effects panel model. Research finds the trade creation effect increases enterprises’ $${\rm{C}}{{\rm{O}}_2}$$CO2 emissions intensity, whereas the trade diversion effect reduces and is more influential. Further mechanism analyses show coal use status of enterprises, especially coal consumption, utilization intensity, and share in primary energy consumption are important influence channels. Additionally, the scale and factors composition of production and technical efficiency are also important mechanisms. Furthermore, enterprises in different regions and of different ownership types show heterogeneity.
Journal: Applied Economics
Pages: 2407-2421
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186370
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:20:p:2407-2421



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2187039_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: Ummad Mazhar
Author-X-Name-First: Ummad
Author-X-Name-Last: Mazhar
Title: Are the informal economy and cryptocurrency substitutes or complements?
Abstract: 
 This research considers a new dimension of the effects of the underground sector by examining the spillovers on cryptocurrency holdings. Cryptocurrencies offer a relatively greater ability to dodge taxes and ensure the anonymity of holders, providing attractive avenues for underground operators to stash their informal-sector earnings. Our results, based on data from more than 50 nations, show that a greater prevalence of the underground economy in a nation is indeed associated with greater cryptocurrency holdings. This result holds across an alternative measure of the shadow economy, and when the bi-directional causality between the shadow economy and cryptocurrency holdings is considered. In other noteworthy findings, greater FDI crowded out cryptocurrency holdings, while greater financial globalization and greater economic uncertainty, ceteris paribus, increased them.
Journal: Applied Economics
Pages: 2470-2481
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2187039
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2187039
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:20:p:2470-2481



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2186371_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: Persistence and long memory in monetary policy spreads
Abstract: 
 The overnight money market rate is a key monetary policy tool. In recent years, central banks worldwide have developed new monetary policy strategies aimed at keeping its deviations from the policy rate small and short-lived. This paper describes the main instruments used for this purpose by the US Fed, the ECB and the BoE and also their policy responses to the Great Financial Crisis (GFC). Fractional integration and long-memory methods are then applied to investigate how those affected the persistence of policy spreads (i.e. the difference between overnight rates and policy rates) during different sub-periods. It is found that this increased sharply during the GFC but has fallen back in recent years. In the case of the ECB the introduction of the new €-STR benchmark in particular appears to have made monetary policy more effective.
Journal: Applied Economics
Pages: 2422-2433
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186371
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186371
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:20:p:2422-2433

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2188167_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jiangxue Wen
Author-X-Name-First: Jiangxue
Author-X-Name-Last: Wen
Author-Name: Zongbing Deng
Author-X-Name-First: Zongbing
Author-X-Name-Last: Deng
Title: Internet development, resource allocation and total factor productivity: Empirical evidence from China’s listed manufacturing enterprises
Abstract: 
 Since the beginning of the 21st century, the new generation of information technology represented by the Internet has swept the world, driving a new round of scientific and technological revolution as well as industrial transformation. In this context, an in-depth discussion of the relationship between Internet development and Total Factor Productivity (TFP) is of great significance for promoting the high-quality development of the economy. Based on 2006 to 2020 annual reports of listed manufacturing enterprises in China, this paper takes resource allocation into the analysis framework of the impact of Internet development on manufacturing TFP to analyse the internal mechanism. The conclusions reveal that Internet development has not only a direct positive effect on manufacturing TFP but also a significant indirect promoting effect on manufacturing TFP by improving resource allocation efficiency. The resource allocation effect of Internet development on manufacturing TFP is mainly realized through the improvement of the allocation of labour factors. Furthermore, resource allocation can strengthen the nonlinear spillover effects of Internet development on manufacturing TFP. Therefore, enough attention should be paid to the improvement of resource allocation in the process of relying on Internet development to improve manufacturing TFP.
Journal: Applied Economics
Pages: 2497-2508
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2188167
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2188167
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:21:p:2497-2508



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2192032_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Adrian R. Bell
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Bell
Author-Name: Chris Brooks
Author-X-Name-First: Chris
Author-X-Name-Last: Brooks
Author-Name: Rohan Brooks
Author-X-Name-First: Rohan
Author-X-Name-Last: Brooks
Title: Are English football players overvalued?
Abstract: 
 It is often suggested by fans, the media, and football commentators that English players are over-valued and receive higher salaries than those of comparable players from different countries. This study examines whether the suggestion can be empirically substantiated. Using a unique database covering all of the European elite leagues, we show that there is an English player value premium of around 40% and a wage premium of 25%. Exploring the reasons for this phenomenon in a regression setting, we find that the excess valuation and salary differential can be partly justified by several factors. First, and most importantly, there is a higher value attributed and wages paid to players in the English Premier League (EPL); second, that English players are more likely to play as strikers than in other positions in EPL clubs; third, that their performance in some positions is somewhat better than the average of players from other nations; fourth, that there are fewer of them in the top European leagues, leading to a shortage in supply. There is, however, evidence that the higher valuation of English attackers and the higher salaries of English attackers and of English midfielders evades explanation by any of these groups of variables.
Journal: Applied Economics
Pages: 2568-2584
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2192032
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2192032
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:21:p:2568-2584



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2187040_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zhongwu Li
Author-X-Name-First: Zhongwu
Author-X-Name-Last: Li
Title: Does self-esteem affect women’s intra-household bargaining power: evidence from China
Abstract: 
 This paper addresses the question of whether self-esteem affects women’s intra-household bargaining power by using the National Survey on Women’s Social Status of China (NSWSS). While providing a conceptual framework, the study employs econometric models to show that self-esteem positively affects women’s intra-household bargaining power. The analyses, using an instrument-variable approach, and using different indicators of household bargaining power, further collaborate the robustness of our conclusion. Overall, the empirical study provides important insights on future academic research and policy measures in women’s empowerment.
Journal: Applied Economics
Pages: 2483-2496
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2187040
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2187040
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:21:p:2483-2496



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2192033_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Antonio Marasco
Author-X-Name-First: Antonio
Author-X-Name-Last: Marasco
Author-Name: Ahmed M Khalid
Author-X-Name-First: Ahmed M
Author-X-Name-Last: Khalid
Author-Name: Fatima Tariq
Author-X-Name-First: Fatima
Author-X-Name-Last: Tariq
Title: Does technology shape the relationship between FDI and growth? A panel data analysis
Abstract: 
 The theoretical literature on the FDI-growth relationship suggests that FDI with high technological content might play a peculiar role. To investigate the existence and magnitude of this peculiar effect, we collected data for 28 countries over the period 1989 to 2019 and used GMM techniques for empirical estimation. We employed the U.N. International Standard Classification (ISIC) Revision 3 to classify FDI data and follow the criteria laid down by the Organization for Economic Cooperation and Development (OECD) to distinguish FDI data by technological content. The empirical findings of this article confirm that technology plays an important role in determining the FDI-Growth relationship. Interestingly, the empirical evidence supports a U-shaped relationship between FDI and economic growth when FDI is disaggregated by different technological contents. More specifically, we find strong evidence that in the manufacturing sector, FDI with a higher technological content exhibits a positive association with growth in the host country. We also find evidence pointing towards a positive relationship between FDI and growth in the host country at the other end of the technology spectrum (low-tech). Further investigation confirms the robustness of these findings across different estimation techniques as well as across different sampling strategies.
Journal: Applied Economics
Pages: 2544-2567
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2192033
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2192033
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:21:p:2544-2567



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2192031_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: Natália Ferreira Trigo
Author-X-Name-First: Natália Ferreira
Author-X-Name-Last: Trigo
Title: What is the effect of imported inflation and central bank credibility on the poor and rich?
Abstract: 
 This study analyzes two phenomena regarding the inflation of the poor and rich. Firstly, considering that imported inflation is a source of inflation, we investigate whether the harmful effect of imported inflation is higher for the poor than the rich. Secondly, assuming that central bank credibility helps keep inflation under control and that the poor are more susceptible to the damaging effect of the inflation tax, we evaluate whether the credibility is more beneficial to the poor. Based on data from the Brazilian economy, the findings indicate a higher effect of imported inflation on food inflation and poor households. In contrast, central bank credibility effectively reduces inflation for the poor.
Journal: Applied Economics
Pages: 2520-2543
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2192031
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2192031
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:21:p:2520-2543



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2288047_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hyuck Jin Lee
Author-X-Name-First: Hyuck Jin
Author-X-Name-Last: Lee
Title: Comparison of suppliers and consumers’ choice factors in the online education market
Abstract: 
 This study compares choice factors between online education suppliers and consumers. While research on online education’s effectiveness in public institutions is extensive, there is a scarcity of studies comparing choice factors in the online education market. To bridge this gap, a survey was conducted among paid online learners to understand their intentions, preferred areas of study, and engagement levels. Data were analysed using SPSS 25.0, including frequency analysis, validity assessments, and multiple regression analysis to examine relationships between choice factors and satisfaction. Supplier choice factors included education costs and location, while consumer choice factors encompassed instructor expertise, content quality, and education effectiveness. This study’s results offer valuable insights into the online education market, highlighting distinct priorities for suppliers and consumers. This research contributes to a better understanding of the online education landscape, providing critical insights for suppliers and policymakers to tailor offerings, improve quality, and optimize online education’s effectiveness. Acknowledging consumer preferences and continuously enhancing services are crucial in meeting learners’ evolving needs in this dynamic sector.
Journal: Applied Economics
Pages: 2585-2598
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2288047
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2288047
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:21:p:2585-2598



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2188168_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sinem Derindere Köseoğlu
Author-X-Name-First: Sinem
Author-X-Name-Last: Derindere Köseoğlu
Author-Name: Burcu Adıgüzel Mercangöz
Author-X-Name-First: Burcu Adıgüzel
Author-X-Name-Last: Mercangöz
Author-Name: Khalid Khan
Author-X-Name-First: Khalid
Author-X-Name-Last: Khan
Author-Name: Suleman Sarwar
Author-X-Name-First: Suleman
Author-X-Name-Last: Sarwar
Title: The impact of the Russian-Ukraine war on the stock market: a causal analysis
Abstract: 
 The study assumes the causal effects of the Russian-Ukraine war on the Moscow Exchange index based on forecasting the counterfactual market response. The findings suggest that the Ukraine war has a detrimental impact on the index; the effects are especially more pronounced at the beginning of the war. The results indicate a rapid divergence from counterfactual predictions and the actual stock index was consistently lower than would have been expected in the absence of war. The two curves suggest a reconvening pattern in the stock market when the stock market resumes its activities. The estimate of the Moscow Exchange index decline following the conflict and reaching the bottom is shown in the point-wise causal effect. The cumulative causal effect adds up to the causal effect in the course of time. In relative terms, the response variable decreased by −51%. This means that the negative impact observed during the intervention period is statistically significant. The diverse economic sectors should have access to market information and pay close attention to the effects of the conflict on the stock market. Investment decisions and policy adjustments should be based on the evolution and changes in the conflict.
Journal: Applied Economics
Pages: 2509-2519
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2188168
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2188168
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:21:p:2509-2519

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2193722_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Soo-A Shim
Author-X-Name-First: Soo-A
Author-X-Name-Last: Shim
Author-Name: Haerin Shim
Author-X-Name-First: Haerin
Author-X-Name-Last: Shim
Author-Name: Tae Sup Shim
Author-X-Name-First: Tae Sup
Author-X-Name-Last: Shim
Title: Does procedural justice in a tax audit situation affect taxpayers’ acceptance of tax audit assessments?
Abstract: 
 This study examines the effects of procedural justice and authority power on corporate taxpayers’ decisions to accept tax audit assessments via an experiment related to a hypothetical tax audit. We find that authority power but not procedural justice increases corporate taxpayers’ acceptance of tax authority decisions in a tax audit situation. However, when authority power is low, there is a significant effect of procedural justice in a tax audit on taxpayers’ aggressiveness in their decisions to accept tax audit assessments. According to the results, a combination of policy measures that enhance procedural justice and traditional deterrence measures warrants consideration to increase overall corporate tax compliance.
Journal: Applied Economics
Pages: 2629-2645
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2193722
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2193722
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:22:p:2629-2645



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2193721_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ammar Ali Gull
Author-X-Name-First: Ammar Ali
Author-X-Name-Last: Gull
Author-Name: Rizwan Mushtaq
Author-X-Name-First: Rizwan
Author-X-Name-Last: Mushtaq
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Author-Name: Phuong Tra Tran
Author-X-Name-First: Phuong Tra
Author-X-Name-Last: Tran
Title: COVID-19 adaptive strategy and SMEs’ access to finance
Abstract: 
 The recent outbreak of COVID-19 has had colossal repercussions for all economic agents including households, corporations, and governments worldwide. Each economic agent responded in their own way to mitigate or at least diminish the scale of that impact. Small and medium-sized enterprises (SMEs) also countered the COVID-19 pandemic to their highest capacity despite being more vulnerable to crises. Many SMEs experienced shutdowns or declared bankruptcy due to the ineptitude and lack of financial resources or effective strategic response to cope with this unprecedented shock. In this paper, we assess the impact of the COVID-19 pandemic coping strategies such as adjusting the process and product, shifting business activity online, and remote working arrangements on SMEs’ access to finance. Using the World Bank’s COVID-19 impact survey data collected between 2020 and mid-2021 from 42 countries, we find that better strategies adopted by SMEs increase their likelihood of getting new credit from government and commercial banks. The results remain robust to alternative test settings. Our findings offer significant and timely contributions to SMEs’ access to finance and to the practicing managers on adopting and adjusting strategies in response to crises or disruptions.
Journal: Applied Economics
Pages: 2615-2628
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2193721
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2193721
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:22:p:2615-2628



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2198195_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Arshad Hasan
Author-X-Name-First: Arshad
Author-X-Name-Last: Hasan
Author-Name: Waqas Anwar
Author-X-Name-First: Waqas
Author-X-Name-Last: Anwar
Author-Name: Muhammad Kaleem Zahir-Ul-Hassan
Author-X-Name-First: Muhammad Kaleem
Author-X-Name-Last: Zahir-Ul-Hassan
Author-Name: Ammad Ahmed
Author-X-Name-First: Ammad
Author-X-Name-Last: Ahmed
Title: Corporate governance and tax avoidance: evidence from an emerging market
Abstract: 
 This study investigates the impact of corporate governance practices (namely board characteristics, ownership structure, and audit committee characteristics) on corporate tax avoidance. For this purpose, this study uses generalised least squares regression on a sample of 138 companies listed on the Pakistan Stock Exchange. Ten-year data from 2009 to 2018 are collected from published annual reports, comprising 1380 firm-year observations. The findings highlight that board independence, concentrated ownership, and audit committee gender diversity are negatively associated with tax avoidance. Conversely, managerial ownership and audit committee independence positively influence aggressive tax behaviour. Additional analysis reveals that these impacts are nonlinear and change with the different levels of tax avoidance. Enhanced governance stifles tax avoidance at lower levels; however, it encourages tax avoidance when firms are already aggressively avoiding taxes. This scenario represents a ‘double down’ behaviour depicted by the Pakistani corporate sector. This is one of the foremost studies to explore the impact of corporate governance on tax avoidance in Pakistan. It contributes to the literature by examining the impact of under-researched factors such as board meetings and audit committee characteristics and provides insights into the conflicting findings on board characteristics and ownership structure.
Journal: Applied Economics
Pages: 2688-2704
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2198195
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2198195
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:22:p:2688-2704



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2198194_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Douglas Kai Tim Wong
Author-X-Name-First: Douglas Kai Tim
Author-X-Name-Last: Wong
Author-Name: Ronald MacDonald
Author-X-Name-First: Ronald
Author-X-Name-Last: MacDonald
Title: Identifying long-run relationships between the exchange rate, interest rates and stock prices
Abstract: 
 This study investigates the long-run relationship between the exchange rate, interest rate, stock prices and output. The results demonstrate that a single restricted relationship is accepted when a structural break is incorporated into the cointegrating vector. Compared with the hypothesis tests on the single restricted relationship, the hypothetical structure comprising multiple relationships in the cointegrating vector is generally accepted in most countries, confirming the interaction between the relationships in the system. Our findings regarding the real exchange rate and stock price differentials appear to contradict the uncovered equity returns parity condition, whereas the relationship between the real exchange rate and interest rate differentials is consistent with the flexible price approach.
Journal: Applied Economics
Pages: 2671-2687
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2198194
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2198194
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:22:p:2671-2687



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2198193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Liqin Hu
Author-X-Name-First: Liqin
Author-X-Name-Last: Hu
Author-Name: Qiuyan Zheng
Author-X-Name-First: Qiuyan
Author-X-Name-Last: Zheng
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: Risk spillover effect of global financial markets in the context of novel coronavirus epidemic
Abstract: 
 Since the outbreak of COVID-19 pandemic, the financial markets of many countries have been impacted severely. In this context, based on the event study method and orthogonal decomposition method, this paper studies the impact of the novel coronavirus epidemic on the spillover effect of global financial risk, and further analyses the financial risk transmission channels of various countries. The results suggest that the novel coronavirus significantly increases the overall risk level of global financial markets, and exacerbates the contagion effects of financial risk through the global risk spillover network. In addition, the analysis of transmission channels reveals the source and direction of the financial risks in each country, manifesting as the unidirectional risk transmissions from developed countries to developing countries and the bidirectional risk contagion paths of countries with similar level of development. Therefore, facing the challenges of public health emergencies such as novel coronavirus epidemic, the major economies should strengthen multilateral cooperation and promote the coordination of macroeconomic policies to jointly defuse global systemic financial risk.
Journal: Applied Economics
Pages: 2654-2670
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2198193
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2198193
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:22:p:2654-2670



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2192034_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Pu Chen
Author-X-Name-First: Pu
Author-X-Name-Last: Chen
Author-Name: Chunyang Wang
Author-X-Name-First: Chunyang
Author-X-Name-Last: Wang
Title: FDI, spillover, and government subsidy: Micro-Econometric evidence from China
Abstract: 
 By analysing comprehensive firm data from 1999 to 2013 categorized by zip code, we find that Foreign Direct Investment (FDI) companies consistently received more local government subsidies in China. When comparing FDI within the same county and year, it becomes evident that FDI creates positive growth and productivity spillovers for other businesses in the same zip code. Furthermore, there is additional evidence to support the amenities channel as a possible productivity spillover channel. This paper makes a significant contribution to the debate regarding FDI's spillover effects at a disaggregated level.
Journal: Applied Economics
Pages: 2599-2614
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2192034
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2192034
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:22:p:2599-2614



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2198192_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chung Choe
Author-X-Name-First: Chung
Author-X-Name-Last: Choe
Author-Name: Daeho Lee
Author-X-Name-First: Daeho
Author-X-Name-Last: Lee
Author-Name: Koangsung Choi
Author-X-Name-First: Koangsung
Author-X-Name-Last: Choi
Title: Job training and firm efficiency: evidence from a meta-frontier analysis
Abstract: 
 This study analyzes the effect of vocational training on technology efficiency (TE) using Workplace Panel Survey data from South Korea. We apply both stochastic frontier analysis (SFA) and meta-frontier analysis (MFA) to compare the TEs of firms with vocational training against the counterpart without vocational training. Our findings from the SFA, which assumes a homogeneous level of technology across comparison groups, confirm that firms without vocational training are more efficient. MFA, which is used to compare the relative efficiencies of different skill levels, provides more intuitive estimation results. Namely, companies that conduct vocational training are closer to the meta-frontier – higher efficiency – than those that do not.
Journal: Applied Economics
Pages: 2646-2653
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2198192
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2198192
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:22:p:2646-2653

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2200233_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rui Xue
Author-X-Name-First: Rui
Author-X-Name-Last: Xue
Author-Name: JiaQi Zhang
Author-X-Name-First: JiaQi
Author-X-Name-Last: Zhang
Author-Name: HuiZheng Liu
Author-X-Name-First: HuiZheng
Author-X-Name-Last: Liu
Author-Name: KeYu Li
Author-X-Name-First: KeYu
Author-X-Name-Last: Li
Author-Name: Claude Baron
Author-X-Name-First: Claude
Author-X-Name-Last: Baron
Title: How does outward foreign direct investment influence manufacturing industry sustainable growth in China?
Abstract: 
 With the economic development of various countries entering a new stage, sustainable development has become a focus of development transformation. It is well known that outward foreign direct investment (OFDI) drives the development of the manufacturing industry. However, the OFDI’s influence mechanism on the sustainable development of the manufacturing industry still needs to be clarified, and its specific action path requires further exploration. This study thus constructs a performance evaluation indicator system for the manufacturing industry from sustainable perspective. Based on interprovincial panel data of China’s 30 provinces from 2008 to 2017, the entropy method is used to measure and analyse the sustainable development level of the manufacturing industry in each province. Second, the influence of OFDI on the sustainable development level of manufacturing industry is verified using a fixed effects model. Finally, through the establishment of the mediation effect and threshold effect models, we conduct in-depth research on its specific mechanism, testing the mediation effect of technological progress and threshold effect of openness. The results reveal that government departments can enhance the sustainable development of manufacturing industry by promoting technological progress through OFDI. Improving the degree of openness can also promote sustainable development in the manufacturing industry.
Journal: Applied Economics
Pages: 2752-2768
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200233
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2200233
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:23:p:2752-2768



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2200231_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rui Li
Author-X-Name-First: Rui
Author-X-Name-Last: Li
Author-Name: Jing Rao
Author-X-Name-First: Jing
Author-X-Name-Last: Rao
Author-Name: Liangyong Wan
Author-X-Name-First: Liangyong
Author-X-Name-Last: Wan
Title: Performance feedback and enterprise digital transformation
Abstract: 
 This study draws on the behavioural theory of the firm to examine the impact of performance feedback on enterprise digital transformation. We develop a set of hypotheses and empirically test them using panel data of Chinese A-share listed firms from 21 to 2019. The fixed-effects panel data models serve as an estimation technique. Empirical results show that as performance falls below aspiration, the degree of enterprise digital transformation first increases and then decreases, as performance rises above aspiration, the degree of enterprise digital transformation first decreases and then increases. That is, there is an inverted U-shaped relationship between negative performance feedback and enterprise digital transformation and a U-shaped relationship between positive performance feedback and enterprise digital transformation. Moreover, CEO openness significantly intensifies digital transformation in response to negative performance feedback, and industrial digitalization positively moderates the effects of positive performance feedback on digital transformation. Our findings highlight the importance of performance feedback on enterprise digital transformation, not only theoretically contributes to the research on digital transformation and behavioural theory, but also have notable implications for practice.
Journal: Applied Economics
Pages: 2720-2737
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200231
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2200231
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:23:p:2720-2737



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203450_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Madhu Sudan Mohanty
Author-X-Name-First: Madhu Sudan
Author-X-Name-Last: Mohanty
Title: Effect of religious attendance on the middle-aged worker’s wage in the United States: a possible causal connection
Abstract: 
 The current study explores the possibility of a causal connection between a worker’s religious attendance and wage. Numerous studies in the literature have already demonstrated a positive correlation between these two variables. For effective policy applications, however, it is necessary to find out whether there exists a causal connection between them. The study uses the US data and tests the hypothesis that religious attendance of middle-aged workers has a positive causal effect on their wages. Following an instrumental variable approach, the current study tests this hypothesis and demonstrates that religious attendance is very much likely to have a causal effect on middle-aged workers’ earnings. This has important policy implications and thus deserves further attention from researchers and policymakers.
Journal: Applied Economics
Pages: 2790-2805
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203450
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203450
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:23:p:2790-2805



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Gautam Hazarika
Author-X-Name-First: Gautam
Author-X-Name-Last: Hazarika
Author-Name: Maroula Khraiche
Author-X-Name-First: Maroula
Author-X-Name-Last: Khraiche
Author-Name: Levent Kutlu
Author-X-Name-First: Levent
Author-X-Name-Last: Kutlu
Title: Gender equity in labor market opportunities and aggregate technical efficiency: a case of equity promoting efficiency
Abstract: 
 This study applies a panel data stochastic frontier analysis to country data towards examining the effect of gender equity in labour market opportunities upon efficiency in the production of GDP. It finds that aggregate technical efficiency is improved by a widening of women’s labour market opportunities as indicated by a rise in their share of employment, but that this effect is dampened by patriarchal cultural norms whose strength is measured by the proportion of the population tracing its ancestry to ethnic groups who adopted the plough as an agricultural implement. That aggregate technical efficiency rises in women’s share of employment is consistent with improvement in the average quality of the workforce when talented women’s entry to it is eased. That this effect is dampened by patriarchal cultural norms is consistent with them promoting a misallocation of employed women. Additionally, aggregate technical efficiency appears improved by democracy, the control of corruption, and trade-openness.
Journal: Applied Economics
Pages: 2806-2817
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203451
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203451
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:23:p:2806-2817



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2200232_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Guohua Yu
Author-X-Name-First: Guohua
Author-X-Name-Last: Yu
Author-Name: Kai Liu
Author-X-Name-First: Kai
Author-X-Name-Last: Liu
Title: Foreign direct investment, environmental regulation and urban green development efficiency—An empirical study from China
Abstract: 
 This study investigates the existence of the pollution halo hypothesis in China. To realize the goals, an urban green development efficiency measuring framework was established applying SBM directional distance function and Malmquist-Luenberger index. Using linear panel model and nonlinear panel model and data of 284 cities in China from 2008 to 2019, we have found that the pollution halo hypothesis does exist in China because FDI increases urban green development efficiency. The mechanism analysis of introducing environmental regulation indicates that the impact of FDI on urban green development efficiency presents a ‘U-shaped’ feature. The implementation of strict environmental regulation can significantly increase the positive impact of FDI on the urban green development efficiency. In addition, the analysis of regional heterogeneity has shown that when the environmental regulation intensity exceeds the turning point, FDI in eastern and central China plays a significant positive role in urban green development efficiency, while that in western China is inhibitory effect. Our empirical results have suggested the Chinese government should further utilize the positive role of FDI in urban green development, including gradually and orderly implementing strict environmental protection regulatory policies, and implementing green energy conservation transformation projects for energy intensive industries.
Journal: Applied Economics
Pages: 2738-2751
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200232
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2200232
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:23:p:2738-2751



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2200230_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jianwen Li
Author-X-Name-First: Jianwen
Author-X-Name-Last: Li
Author-Name: Yang Zhou
Author-X-Name-First: Yang
Author-X-Name-Last: Zhou
Author-Name: Jinyan Hu
Author-X-Name-First: Jinyan
Author-X-Name-Last: Hu
Author-Name: Feng Guo
Author-X-Name-First: Feng
Author-X-Name-Last: Guo
Title: Local bias versus home bias: Evidence from debt-based crowdfunding
Abstract: 
 Local bias and home bias are conventional phenomena in the financial market. This paper examines whether local bias and home bias exist in virtual loan transactions on the debt-based crowdfunding marketplace. Using loan-level and lender-level transaction data from a large crowdfunding marketplace in China and employing a potential-dyad approach, we find that lenders are more likely to invest in local borrowers rather than in their hometown borrowers, indicating that local bias exists in this virtual marketplace rather than home bias. More interestingly, the local bias is more pronounced for local lenders whose work area and hometown are the same than for moving lenders who leave their hometowns. Furthermore, lenders’ local bias is more pronounced if lenders (borrowers) are from more trust-propensity (trustworthy) regions. Finally, we find that lending to local borrowers cannot significantly increase the welfare of lenders. Various specifications, alternative dependent variables, and alternative potential-dyad sets show that our empirical-based results are robust.
Journal: Applied Economics
Pages: 2705-2719
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200230
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2200230
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:23:p:2705-2719



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2200234_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Author-Name: Paulo Araújo
Author-X-Name-First: Paulo
Author-X-Name-Last: Araújo
Title: “It’s the average cost, mister!” – Explaining the recurrent dismissal of European soccer coaches
Abstract: 
 The professional survival of a coach can be explained by the ability of the team that he or she trains to achieve a reasonable number of points in relation to the total team’s budget. In this work, we test the microeconomic indicator of average cost as an important (and so far unassessed) dimension in the survival of a professional football coach in the face of recurrent defeats. For this purpose, we use empirical methods associated with survival analysis considering recurrent events. We analyse 1077 contract durations between the 2009/2010 and 2019/2020 seasons of the professional leagues in Spain, England, Italy, Germany, France and Portugal. We conclude that the average cost (total budget divided by points achieved in the national championships) is an important dimension. We also discuss other dimensions – such as clubs’ financial characteristics, neighbouring teams’ competitiveness or coaches’ individual characteristics – which, in certain leagues, also prove to be determinant.
Journal: Applied Economics
Pages: 2769-2789
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200234
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2200234
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:23:p:2769-2789

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xiaokun Wei
Author-X-Name-First: Xiaokun
Author-X-Name-Last: Wei
Author-Name: Yan Jiang
Author-X-Name-First: Yan
Author-X-Name-Last: Jiang
Author-Name: Tian Gan
Author-X-Name-First: Tian
Author-X-Name-Last: Gan
Title: Air pollution and entrepreneurship: evidence from China
Abstract: 
 Air pollution has become a major danger to human health and a hindrance to social and economic growth. This study endeavours to examine the impact of air pollution on entrepreneurial activities in China. Using registration data from 2000 to 2018, we find that severe air pollution can decrease the number of newly registered firms by about 36%, suggesting a negative eﬀect on entrepreneurship. To strengthen the causal inference, we adopt the two-stage least square method to address the potential endogenous problems. The result is robust to different model settings and alternative measurements of air pollution. The study further delves into the mechanisms through which air pollution affects entrepreneurial activities, including brain drain, social capital, startup costs, and financial constraints. This study recommends effective environmental regulation policies to improve air quality as well as increase the attraction of mobile factors to alleviate the adverse impacts of air pollution on entrepreneurial activities.
Journal: Applied Economics
Pages: 2860-2874
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203454
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203454
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:24:p:2860-2874



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Angelo Castaldo
Author-X-Name-First: Angelo
Author-X-Name-Last: Castaldo
Author-Name: Anna Rita Germani
Author-X-Name-First: Anna Rita
Author-X-Name-Last: Germani
Author-Name: Alessia Marrocco
Author-X-Name-First: Alessia
Author-X-Name-Last: Marrocco
Author-Name: Marco Forti
Author-X-Name-First: Marco
Author-X-Name-Last: Forti
Author-Name: Andrea Salustri
Author-X-Name-First: Andrea
Author-X-Name-Last: Salustri
Title: Drivers and frictions of workplace accidents: an empirical investigation of cross-country European heterogeneity
Abstract: 
 This paper presents an empirical investigation on the determinants of workplace accidents across Europe and focuses on the extent to which production-system characteristics (employment sectoral risk, size of firms, temporary contracts), business cycle and socio-economic factors (GDP, level of investments, unemployment, education) and other territorial controls (crime index) might account for cross-country heterogeneity. We use Eurostat data, and our panel is composed of 27 European countries over the period 2010–2018. Implementing different functional forms and estimation methodologies (pooled OLS, panel fixed and random effects models, system-GMM and semiparametric fixed effects model), we find robust evidence that productive-system structural characteristics, business cycle controls and the other territorial variables are effective in explaining European cross-country heterogeneity. Moreover, we find evidence of a nonlinear relationship between GDP and occupational accidents.
Journal: Applied Economics
Pages: 2931-2946
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203458
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203458
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:24:p:2931-2946



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: Eduardo Rodrigues
Author-X-Name-First: Eduardo
Author-X-Name-Last: Rodrigues
Title: Is public investment in construction and in R&D, growth enhancing? A PVAR approach
Abstract: 
 We study the impacts of public investment, notably in construction and in R&D on economic growth and of crowding-out effects on private investment. For this purpose, we use Panel Vector Autoregression (PVAR) models and the Generalized Method of Moments (GMM) approach for 40 advanced and emerging countries from 1995 to 2019. Our findings are as follows: i) innovations in public investment have more positive effects on GDP growth and private investment in emerging economies; ii) the positive impulse of public investment on private sector is pronounced and significant in emerging economies; iii) government construction investment has a more positive effect on economic growth in emerging economies; iv) innovations in public construction crowd-out private investment spending in advanced countries; v) emerging economies benefit from public R&D investment; vi) the public investment multiplier of the full sample is 1.67, while it is 0.87 for advanced economies and 2.29 for emerging economies.
Journal: Applied Economics
Pages: 2875-2899
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203455
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203455
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:24:p:2875-2899



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203456_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Author-Name: Rim Boussaada
Author-X-Name-First: Rim
Author-X-Name-Last: Boussaada
Author-Name: Majdi Karmani
Author-X-Name-First: Majdi
Author-X-Name-Last: Karmani
Title: Financial inclusion and non-performing loans in MENA region: the moderating role of board characteristics
Abstract: 
 This paper investigates how financial inclusion affects credit risk in the MENA region. It also checks whether board characteristics can moderate this relationship. We use a sample of MENA banks from 2004 to 2017 and perform the system generalized method of moment approach. Through the usage and access dimensions, we find that financial inclusion reduces the level of non-performing loans. These results are robust using an index of financial inclusion. For board characteristics, findings indicate that only board size, duality, and independent directors significantly affect the level of NPLs. Our findings prove that MENA banks benefit from an interaction between greater financial inclusion and board characteristics. These insights are consistent with theorists and scholars who are working on each dimension separately. As an extension of their work, we find that the interaction significantly affects the NPLs ratio.
Journal: Applied Economics
Pages: 2900-2914
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203456
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203456
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:24:p:2900-2914



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tao Lin
Author-X-Name-First: Tao
Author-X-Name-Last: Lin
Author-Name: Wenhao Qian
Author-X-Name-First: Wenhao
Author-X-Name-Last: Qian
Title: Water quality monitoring and mortality: evidence from China
Abstract: 
 Understanding the implementation of environmental regulation is essential to the design of environmental policy. The impact of water pollution regulation on mortality was examined in this study using a spatial regression discontinuity (RD) design based on China’s water quality monitoring system. Because water quality readings are important to the political promotion of officials and water quality monitoring stations only capture water pollution from upstream, local governments have an incentive to combat water pollution upstream, not downstream. Exploring this discontinuity in the stringency of regulations by linking the 2010 census microdata with water quality monitoring station location data in China, we found that households immediately upstream of a monitoring station faced a more than 11% reduction in household mortality compared to households immediately downstream of a monitoring station. Strict water quality supervision had a greater effect on mortality in rural households. The difference in mortality between upstream and downstream households was even greater for monitoring stations with high implementation and automatic monitoring technology. The results of this study improve our understanding of the health effects of environmental regulation, as well as the design and implementation of environmental regulation policies under a centralized political system.
Journal: Applied Economics
Pages: 2819-2835
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203452
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203452
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:24:p:2819-2835



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Carla Fernandes
Author-X-Name-First: Carla
Author-X-Name-Last: Fernandes
Author-Name: Maria Rosa Borges
Author-X-Name-First: Maria Rosa
Author-X-Name-Last: Borges
Author-Name: Esselina Macome
Author-X-Name-First: Esselina
Author-X-Name-Last: Macome
Author-Name: Jorge Caiado
Author-X-Name-First: Jorge
Author-X-Name-Last: Caiado
Title: Measuring an equilibrium long-run relationship between financial inclusion and monetary stability in Mozambique
Abstract: 
 The present work aims to assess the existence of the relationship between financial inclusion and monetary stability in Mozambique based on the analysis of the VEC model for the period from 2005 to 2020. In addition to indicators of traditional banking institutions, this article goes further by also incorporating indicators relating to services of electronic money institutions with the objective of capturing the impact of digital financial services on financial inclusion and their role in financial stability. The long-term VEC model proved to be statistically significant and confirmed the existence of a long-term relationship between financial inclusion and monetary stability. The results also showed that the traditional financial inclusion and non-traditional digital financial inclusion drives the price stability, and in turn, monetary stability. The study concludes that the effectiveness of monetary policy in Mozambique depends on the predictive capacity of the monetary policy instruments, which are highly correlated, to financial inclusion. In this sense, the monetary authority must consider the need to incorporate financial inclusion variables, especially the non-traditional digital ones, in the transmission and forecasting model of the monetary policy rule, to capture the dynamics of financial inclusion segment and its contribution to price stability.
Journal: Applied Economics
Pages: 2915-2930
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203457
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203457
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:24:p:2915-2930



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203453_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Liliane Bonnal
Author-X-Name-First: Liliane
Author-X-Name-Last: Bonnal
Author-Name: Pascal Favard
Author-X-Name-First: Pascal
Author-X-Name-Last: Favard
Author-Name: Thomas Laurent
Author-X-Name-First: Thomas
Author-X-Name-Last: Laurent
Title: Better scan personalities than bodies? Prenatal care to enforce a pregnancy self-commitment
Abstract: 
 The purpose of this work was to measure the effect of the proper prenatal medical care on the health of newborns. This study was based on a survey conducted in France in 2010 by the National Institute for Health and Medical Research and the Ministry of Health. Three different definitions of newborn health were used, and the definition of proper prenatal care was set based on the recommendations of the Haute Autorité de Santé (HAS). The analysis was conducted based on propensity score methods to adjust for potential confounders. The results showed that proper prenatal may reduce some newborn health problems. But, if allowance is made for women’s behaviour or for mothers’ perceptions of their pregnancy, prenatal care could have no effect on newborn health. Moreover, it seems that a subpopulation of women would use prenatal care visits to enforce a self-commitment, to adhere to personal good conduct rather than for only medical reasons. Better information, prevention and customization of prenatal care according to pregnant women’s profiles might be more effective in terms of health and perhaps cost-saving.
Journal: Applied Economics
Pages: 2836-2859
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203453
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203453
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:24:p:2836-2859

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203897_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zhuolei Li
Author-X-Name-First: Zhuolei
Author-X-Name-Last: Li
Author-Name: Xundi Diao
Author-X-Name-First: Xundi
Author-X-Name-Last: Diao
Author-Name: Chongfeng Wu
Author-X-Name-First: Chongfeng
Author-X-Name-Last: Wu
Title: Attention allocation and return comovement when trading on smartphones: evidence from China
Abstract: 
 This paper investigates the impact of smartphone trading on investor attention allocation. We find a positive connection between smartphone trading ratio and return comovement. Smartphone traders relatively pay less attention to firm-specific information and more to information at the market level than computer-based traders. The impact of smartphone trading is positively correlated to the Internet searching level but negatively correlated to social media discussion intensity and analyst following. We also show that market boom and crush would increase the effect of smartphone trading on attention allocation.
Journal: Applied Economics
Pages: 3011-3031
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203897
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203897
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:25:p:3011-3031



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Junhao Zhong
Author-X-Name-First: Junhao
Author-X-Name-Last: Zhong
Author-Name: Yilin Zhong
Author-X-Name-First: Yilin
Author-X-Name-Last: Zhong
Author-Name: Minghui Han
Author-X-Name-First: Minghui
Author-X-Name-Last: Han
Author-Name: Tianjian Yang
Author-X-Name-First: Tianjian
Author-X-Name-Last: Yang
Author-Name: Qinghua Zhang
Author-X-Name-First: Qinghua
Author-X-Name-Last: Zhang
Title: The impact of AI on carbon emissions: evidence from 66 countries
Abstract: 
 This study aims to address debate in previous studies on whether AI has a positive or negative effect on carbon emission reduction. We used quantile regression and PSTR models to study the diverse impacts of AI on carbon emissions in 66 countries from 1993–2019. There were three main findings in this paper. First, the impact of AI on carbon emissions varies across countries, and its effect on carbon reduction is mainly found in high-carbon emission and high-income countries. Second, the industrial structure environment of different countries affects the role of AI in carbon reduction, with its marginal effect in limiting emissions decreasing with the rise of secondary industrial structures. Third, the impact of AI varies in countries based on their different demographic structures. The marginal effect of AI on carbon emission reduction increases in places with older populations. This study offers unique insight into the heterogeneous impact of AI on CO2 emissions. Our analysis confirms the importance of industrial and demographic structures in promoting carbon emission reduction. We provide effective policy recommendations for economic development and environmental governance.
Journal: Applied Economics
Pages: 2975-2989
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203461
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203461
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:25:p:2975-2989



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Denis Anne
Author-X-Name-First: Denis
Author-X-Name-Last: Anne
Author-Name: Sylvain Chareyron
Author-X-Name-First: Sylvain
Author-X-Name-Last: Chareyron
Author-Name: Marie-Axelle Granié
Author-X-Name-First: Marie-Axelle
Author-X-Name-Last: Granié
Author-Name: Yannick L’Horty
Author-X-Name-First: Yannick
Author-X-Name-Last: L’Horty
Title: Gender Gap in Access to the Driving Licence: Experimental Evidence from France
Abstract: 
 In this article, we assess the gender difference in response from driving schools to a request for information about the requirements to pass the driving licence. To this purpose, we created fictitious profiles for two young candidates seeking a driving licence training, a woman and a man, who were similar in all other aspects. We conducted two waves of experiment on 290 driving schools randomly selected from an exhaustive list of French driving schools. The feedback received from driving schools that responded to both candidates is examined to investigate differences in treatment between the male and female applicants. Our analysis shows that driving schools propose a slightly significantly higher maximum number of hours of preparation for the road test when the candidate is a woman: on average, driving schools propose 1.5 more hours of training to women than to men. On the other hand, we do not find a significant gender difference in the price of the training offered and few differences in other variables related to the content of the response.
Journal: Applied Economics
Pages: 2947-2958
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203459
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203459
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:25:p:2947-2958



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203898_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Corina Paraschiv
Author-X-Name-First: Corina
Author-X-Name-Last: Paraschiv
Author-Name: Nawel Ayadi
Author-X-Name-First: Nawel
Author-X-Name-Last: Ayadi
Author-Name: Xavier Rousset
Author-X-Name-First: Xavier
Author-X-Name-Last: Rousset
Author-Name: Monica Turinici
Author-X-Name-First: Monica
Author-X-Name-Last: Turinici
Title: Consumer vulnerability to dynamic pricing in online environments
Abstract: 
 This article examines consumer vulnerability perceptions of dynamic pricing in online environments. Based on an online survey of 763 French web-users, we show that dynamic pricing generates a feeling of being vulnerable and a perceived loss of control over the transaction process. A bivariate probit analysis of these two dimensions of consumer vulnerability is performed, allowing to highlight their connection, but also their different nature. While consumer feeling of being vulnerable is triggered by unethicality and unfairness perceptions, loss of control relies on the perception of dynamic prices as illegal, unacceptable, and unpredictable. Consumer displeasure is identified as the only factor with an overall effect on consumer vulnerability. Our findings suggest that firms opting for dynamic pricing should adopt a careful and cautious approach given the potential of this pricing strategy to generate consumer vulnerability. Regulation appears as a promising tool to fight against consumer perception of loss of control, but not their feeling of being vulnerable.
Journal: Applied Economics
Pages: 3032-3047
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203898
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203898
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:25:p:3032-3047



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Emmanuel Mamatzakis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Mamatzakis
Author-Name: Steven Ongena
Author-X-Name-First: Steven
Author-X-Name-Last: Ongena
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Mike Tsionas
Author-X-Name-First: Mike
Author-X-Name-Last: Tsionas
Title: A Bayesian policy learning model of COVID-19 non-pharmaceutical interventions
Abstract: 
 This article examines the impact of non-pharmaceutical interventions on the initial exponential growth of the infected population and the final exponential decay of the infected population. We employ a Bayesian dynamic model to test whether there is learning, a random walk pattern, or another type of learning with evolving epidemiological data over time across 168 countries and 41,706 country-date observations. Although we show that Bayesian learning is not taking place, most policy measures appear to assert some effect. In particular, we show that economic policy variables are of importance for the main epidemiological parameters derived from the policy learning model. In an empirical second-stage application, we further investigate the underlying dynamics between the epidemiological parameters and household debt repayments, a key economic variable, in the UK. Results show no Bayesian learning, although a higher transmission rate would increase household debt repayments, while the recovery rate would have a negative impact. Therefore, suboptimal learning is taking place.
Journal: Applied Economics
Pages: 2990-3010
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203462
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203462
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:25:p:2990-3010



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2326039_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mikael Rönkkö
Author-X-Name-First: Mikael
Author-X-Name-Last: Rönkkö
Author-Name: Joonas Holmi
Author-X-Name-First: Joonas
Author-X-Name-Last: Holmi
Author-Name: Mervi Niskanen
Author-X-Name-First: Mervi
Author-X-Name-Last: Niskanen
Author-Name: Markus Mättö
Author-X-Name-First: Markus
Author-X-Name-Last: Mättö
Title: The adaptive markets hypothesis: Insights into small stock market efficiency
Abstract: 
 In this paper, we explore whether the adaptive markets hypothesis (AMH) describes the efficiency of the Finnish stock market better than the efficient markets hypothesis (EMH) does. Building on this, we also test how small market size and market liberalization impact the efficiency of the Finnish stock market and examine the relationship between market volatility and return in this market. We conduct this study by applying the subsample analysis and the rolling window analysis to the daily returns of the OMXH25 index and by measuring the efficiency through three linear and two nonlinear predictability tests. The results of our study strongly support the AMH. They also suggest that small market size alone does not make a market less efficient; opening a market to foreign investors improves its efficiency after a delay; and the correlation between market volatility and return varies over time in the Finnish stock market, being usually negative. These findings mostly contradict the traditional investment paradigm.
Journal: Applied Economics
Pages: 3048-3062
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2024.2326039
File-URL: http://hdl.handle.net/10.1080/00036846.2024.2326039
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:25:p:3048-3062



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2203460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xiaojie Yu
Author-X-Name-First: Xiaojie
Author-X-Name-Last: Yu
Author-Name: Duminda Kuruppuarachchi
Author-X-Name-First: Duminda
Author-X-Name-Last: Kuruppuarachchi
Author-Name: Sriyalatha Kumarasinghe
Author-X-Name-First: Sriyalatha
Author-X-Name-Last: Kumarasinghe
Title: Financial development, FDI, and CO2 emissions: does carbon pricing matter?
Abstract: 
 This study investigates the impact of financial development and foreign direct investment (FDI) on CO2 emissions, with a special focus on carbon pricing (emissions trading and taxing) in 57 developed and developing economies between 2000 and 2017. Using an eight-fold financial development construct for the first time, we find that financial depth in institutions negatively (positively) affects the CO2 intensity of developed (developing) economies, while financial access to institutions has a negative impact in both types of economies. Financial depth (stability) in markets negatively affects developing (developed) economies’ CO2 intensity, while financial access to markets increases (decreases) CO2 intensity in developed (developing) economies. Moreover, inward FDI stock quality (a net FDI position) increases (reduces) CO2 intensity in developing (developed) economies. Finally, we document that carbon pricing in developed economies helps reverse the positive effect of inward FDI quality on CO2 intensity, implying that a such policy helps those economies attract climate-friendly FDI. Our study reveals the implications of the reduction of CO2 emissions placing the focus on both financial development and FDI fully and together for the first time.
Journal: Applied Economics
Pages: 2959-2974
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203460
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203460
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:25:p:2959-2974

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2204216_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zhicheng Xu
Author-X-Name-First: Zhicheng
Author-X-Name-Last: Xu
Author-Name: Yu Zhang
Author-X-Name-First: Yu
Author-X-Name-Last: Zhang
Author-Name: Dongying Li
Author-X-Name-First: Dongying
Author-X-Name-Last: Li
Title: Chinese aid and nutrition improvement in Sub-Saharan Africa
Abstract: 
 The efficacy of foreign aid, especially escalating Chinese aid, has been controversial. Considering the widespread malnutrition in Sub-Saharan Africa and the substantial concerns about Chinese aid, we investigate whether and how Chinese development assistance improves the nutrition of the African recipients, particularly children and women. We match Chinese aid projects and Demographic and Health Surveys (DHS) covering 24 SSA countries during 2000–2016. We address the causality by comparing the individuals who lived near a Chinese aid project that was effective at the time of the interview to those who were not exposed to Chinese aid projects while a nearby Chinese aid project would be initiated after the interview. We measure malnutrition by hemoglobin haemoglobin and anemia anaemia which are more relevant and reliable than other indicators. Our results show that Chinese aid significantly increased hemoglobin haemoglobin and decreased the likelihood of anemia anaemia, and the effects are more pronounced among children. In contrast to the popular expectation, health aid does not significantly improve nutrition conditions, at least in the short run. Instead, other aid projects that promote earnings and job opportunities substantially reduced malnutrition among children and women. Heterogeneity analysis further shows that Chinese aid strongly improved nutrition mainly among disadvantaged residents.
Journal: Applied Economics
Pages: 3098-3116
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204216
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204216
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:26:p:3098-3116



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2204217_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fangyuan Shi
Author-X-Name-First: Fangyuan
Author-X-Name-Last: Shi
Author-Name: Yuhan Zheng
Author-X-Name-First: Yuhan
Author-X-Name-Last: Zheng
Author-Name: Xuan Liu
Author-X-Name-First: Xuan
Author-X-Name-Last: Liu
Title: Does internet development affect urban economic resilience? New evidence from China
Abstract: 
 Global macroeconomic development is faced with great uncertainty, especially the repeated impact of COVID-19, which exacerbate the challenges. This study explores the impact of Internet development on the resilience of cities. In the first place, a theoretical model is used to analyse how Internet development affects productivity and further influences urban economic resilience. Based on this, a long-differences model is established for empirical analysis. The study found that improving Internet development is an important step enhancing urban economic resilience. The results provide new perspectives and evidence for the study of urban economic resilience.
Journal: Applied Economics
Pages: 3117-3132
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204217
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204217
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:26:p:3117-3132



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2204214_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Nakil Sung
Author-X-Name-First: Nakil
Author-X-Name-Last: Sung
Title: COVID-19, over-the-top services, and the future of pay television: the case of South Korea
Abstract: 
 A drastic increase in over-the-top (OTT) subscriptions and sales after COVID-19 may threaten the future of pay television (pay TV) in South Korea. This study examines changes in the usage time of pay TV and OTT services, particularly after the COVID-19 outbreak, and assesses whether the termination of pay TV subscriptions (cord-cutting) will occur in South Korea. Empirical results indicate that the more time an individual spent on OTT services, the less time they spent on pay TV, thereby indicating a substitution relationship between pay TV and OTT services. However, the pay TV usage time of OTT service users remained at a high level and did not decrease. In addition, the results confirm that the drastic increase in OTT service usage time, particularly after the pandemic outbreak, was mainly due to the increase in the number of OTT service users, not the increase in OTT service usage time per OTT service user. These findings suggest that massive cord-cutting will not occur in Korea without drastic changes in media market conditions.
Journal: Applied Economics
Pages: 3063-3077
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204214
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204214
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:26:p:3063-3077



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2205099_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fritz Wittmann
Author-X-Name-First: Fritz
Author-X-Name-Last: Wittmann
Author-Name: Michael Eder
Author-X-Name-First: Michael
Author-X-Name-Last: Eder
Author-Name: Katharina Schreck
Author-X-Name-First: Katharina
Author-X-Name-Last: Schreck
Author-Name: Florian Grassauer
Author-X-Name-First: Florian
Author-X-Name-Last: Grassauer
Title: Modelled impacts of farm-level adaptations in response to changed dietary patterns
Abstract: 
 Dietary change can facilitate a shift towards more sustainable agricultural practices and requires farmers to implement different farm adaptations. Here, we examine structural impacts on farms of several dietary scenarios towards changes in food demand pertaining to more regional food, more organic food and less meat in the metropolitan region of Vienna, Austria. We use a linear programming farm model underpinned by data on the intended adaptive behaviour of farmers based on a survey in the study region. The results show that for conventional farms, the intended adaptations from conventional to organic farming have higher effects on the investigated indicators (nitrogen import, gross margin, labour requirements) than adaptations concerning crop and livestock production patterns. A key finding is that, in terms of policy design, the positive effects on the investigated indicators can be achieved more easily by inciting switches towards organic farming than by inciting switches concerning crop and livestock production patterns. This would require dedicated policy measures at multiple levels, with payments specifically aimed at organic agriculture and other innovative, agro-ecological management practices. This article contributes to the modelling of regional-level food supply by showing that integrating empirical data into the farm model allows for a more targeted development of policy measures.
Journal: Applied Economics
Pages: 3166-3180
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2205099
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2205099
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:26:p:3166-3180



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2204218_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jinlong Ma
Author-X-Name-First: Jinlong
Author-X-Name-Last: Ma
Author-Name: Pengfei Zhao
Author-X-Name-First: Pengfei
Author-X-Name-Last: Zhao
Author-Name: Meng Li
Author-X-Name-First: Meng
Author-X-Name-Last: Li
Author-Name: Junfang Niu
Author-X-Name-First: Junfang
Author-X-Name-Last: Niu
Title: The evolution of global soybean trade network pattern based on complex network
Abstract: 
 In this paper, a global soybean trade network (GSTN) is constructed based on the international trade data from 1987 to 2020. The results are as follow: (1) From 1987 to 2020, the scale of the network continued to expand, the number of trading countries continued to increase, and the trade links between countries gradually deepened. (2) The power function curve of the node degree distribution shows that the GSTN satisfies the power law distribution, which fits to be a scale-free network. (3) The global soybean export market is highly concentrated. The United States, Brazil and Argentina account for more than 80% of global soybean exports. China is the world’s largest soybean importer. (4) The control ability of core countries in the GSTN has gradually declined, which is shown from that the importance of nodes has gradually weakened, while the trade between peripheral countries is gradually increasing, showing the phenomenon of trade multilateralism. (5) South America has become the global soybean export centre, and Asia has become the global soybean import centre. The trade status of North America has declined, and the overall strength of Africa and Oceania is the weakest.
Journal: Applied Economics
Pages: 3133-3149
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204218
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204218
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:26:p:3133-3149



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2204215_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tao Lin
Author-X-Name-First: Tao
Author-X-Name-Last: Lin
Author-Name: Zhao Chen
Author-X-Name-First: Zhao
Author-X-Name-Last: Chen
Title: Government cooperation, market integration, and productivity: evidence from China
Abstract: 
 This paper examines the causal effect of regional market integration on firm productivity through the use of 2001–2008 firm-level microdata in China. The research design relies on a regression discontinuity design based on China’s Pan-Pearl River Delta (PPRD) regional cooperation policy. The results indicate that the PPRD regional cooperation policy increases the total factor productivity (TFP) of firms by 6% on average. The positive impact of the PPRD regional cooperation policy on TFP is greater for private firms, large firms, and labour-intensive firms. Exploring the mechanism through which regional cooperation increases firm TFP, we find that the PPRD regional cooperation policy improves firms’ productivity primarily by expanding the scale of firms, promoting technological innovation, and optimizing the allocation of factors. The study findings deepen our understanding of productivity improvement from the perspective of the market environment.
Journal: Applied Economics
Pages: 3078-3097
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204215
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204215
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:26:p:3078-3097



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2205097_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Zhi-Ting Xu
Author-X-Name-First: Zhi-Ting
Author-X-Name-Last: Xu
Title: Managerial ability and R&D investment: do CEOs’ and firms’ characteristics matter?
Abstract: 
 Previous studies document that investing in research and development is a key factor to keep firm survive in the long-run. This study instead focuses on the relationship between managerial role and R&D decisions. Specifically, we investigate whether more talented managers facilitate firms’ R&D investment. Using the MA-score as a proxy for managerial ability, we find that more able managers increase R&D spending. Furthermore, the results show that more talented managers decide to invest more in R&D investment depending on several conditions, such as whether firms are financially unconstrained or in non-crisis period. Other conditions include whether firms are facing lower default probability, in competitive industries, and with some CEOs’ characteristics, such as male, young age, higher granted stock option and higher salary.
Journal: Applied Economics
Pages: 3150-3165
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2205097
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2205097
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:26:p:3150-3165

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2205100_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Osaid Alshamleh
Author-X-Name-First: Osaid
Author-X-Name-Last: Alshamleh
Author-Name: Glenn Paul Jenkins
Author-X-Name-First: Glenn Paul
Author-X-Name-Last: Jenkins
Author-Name: Tufan Ekici
Author-X-Name-First: Tufan
Author-X-Name-Last: Ekici
Title: Excise tax incidence: the inequity of taxing obesity and beauty
Abstract: 
 The estimation and analysis of the distribution of the negative health impacts of certain commodities subject to excise taxes in Belize and the distribution of the burdens of the excise taxes across households of different income levels are the focus of this article. Particular attention is given to the taxation of soft drinks and cosmetics. We examine the income distribution and tax revenue impacts using the commodity data from the household expenditure survey by and the effective tax rates expressed as a percentage of the value of the final consumption of each item. As in many developing countries, taxes on alcoholic beverages and tobacco products are found to be regressive. The most regressive excise taxes are on soft drinks and cosmetics. Households across the economy pay more in excise taxes on cosmetics than they do on either alcoholic beverages or tobacco products. Relative to the level of household expenditures, the burden of the excise taxes on cosmetics is highest for households in the lowest quintile of total expenditures. The impact of soft drinks in creating obesity is likely to be much greater for high income households whose total consumption per household is twice that of low-income households.
Journal: Applied Economics
Pages: 3181-3193
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2205100
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2205100
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3181-3193



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206108_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Marta Arroyabe
Author-X-Name-First: Marta
Author-X-Name-Last: Arroyabe
Author-Name: Katrin Hussinger
Author-X-Name-First: Katrin
Author-X-Name-Last: Hussinger
Title: Acquisition experience and the winner’s curse in corporate acquisitions
Abstract: 
 The winner’s curse describes the behavioural phenomenon that the winner of a bidding contest pays a price that is too high. This paper shows that experiential learning cannot prevent a winner’s curse on the market of corporate control as acquiring firms with acquisition experience still pay a higher price for the target in a bidding contest. Acquisition experience, however, is related to a superior post-acquisition performance of the winning firm after acquisitions associated with a bidding contest.
Journal: Applied Economics
Pages: 3247-3261
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206108
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206108
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3247-3261



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2205101_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Na Sun
Author-X-Name-First: Na
Author-X-Name-Last: Sun
Author-Name: Yan Sun
Author-X-Name-First: Yan
Author-X-Name-Last: Sun
Author-Name: Xiaojuan Shen
Author-X-Name-First: Xiaojuan
Author-X-Name-Last: Shen
Author-Name: Shaorong Sun
Author-X-Name-First: Shaorong
Author-X-Name-Last: Sun
Title: What affects the risks of fintech lending enterprises?
Abstract: 
 Five main risk factors of fintech lending enterprises are empirically analysed by using the duration analysis model. The main findings are: Technology does not cause a significant increase in enterprise risk, the main reason is that although technology brings new types of risk, namely, technical risk, but it eliminates the human errors and moral hazards in a certain extent. There is debate on the role of regulatory policy on corporate risk, ‘market failure theory’ and ‘regulatory failure theory’, the empirical results show that the institutionalization of regulatory is more conducive to reducing risk than the frequently issuing ‘new regulatory policies’. As for the debate about whether large or small enterprises carry greater risks, the empirical evidence shows that the failure risks of large enterprises are only 79% of the risks of small enterprise. Another important finding is that the risks of listed companies or venture capital-controlled enterprises are far less than that of private enterprises, which suggests that the institution is very important to reduce risk.
Journal: Applied Economics
Pages: 3194-3211
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2205101
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2205101
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3194-3211



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206109_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zeeshan Khan
Author-X-Name-First: Zeeshan
Author-X-Name-Last: Khan
Author-Name: Ramez Abubakr Badeeb
Author-X-Name-First: Ramez Abubakr
Author-X-Name-Last: Badeeb
Author-Name: Changyong Zhang
Author-X-Name-First: Changyong
Author-X-Name-Last: Zhang
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: Financial inclusion and energy efficiency: role of green innovation and human capital for Malaysia
Abstract: 
 One of the top priorities of most countries around the world is sustainable development, to achieve which financial inclusion is identified as one of the key elements. Thus, unlike previous studies, the current study aims to channel the impact of financial inclusion on energy efficiency by constructing a parametric-based index that covers availability, accessibility, and usage of the former. The index provides an overall picture of financial services in all the three covered aspects. The analysis based on novel econometric time-series approaches, the method of moment quantile regression and the robust least square approach, shows that financial inclusion increases energy efficiency. The impact is overall positive for each quantile, i.e. 25th–90th. The impact of green innovation, human capital, and political risk is also supportive for energy efficiency. However, the impact of political risk improvement exhibits negative in the initial stages and turns positive later. In terms of policy implications, broadening financial inclusion base with the promotion of green innovation and human capital is important to achieve higher energy efficiency. In the meantime, improvement in the political risk profile should also be considered for a stable financial system to pave the way for increasing energy efficiency.
Journal: Applied Economics
Pages: 3262-3277
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206109
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206109
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3262-3277



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206110_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hung-Yi Huang
Author-X-Name-First: Hung-Yi
Author-X-Name-Last: Huang
Author-Name: Yun-Chi Lee
Author-X-Name-First: Yun-Chi
Author-X-Name-Last: Lee
Title: Modern pandemic crises and R&D investment
Abstract: 
 This study investigates the impact of crises caused by pandemics on firms’ R&D investments. We explore these associations by utilizing a comprehensive cross-country sample of 261,959 firm-year observations collected from 39 countries during five modern health crises (SARS in 2003, H1N1 in 2009, MERS in 2012, Ebola in 2012, and Zika in 2016). The results indicate that pandemics have a positive and significant impact on R&D investment. Furthermore, we show that private firms in civil-law countries were more likely to adopt conservative financial policies than those in common-law countries. We conclude that the difference between the legal origins of private firms influences the impact on R&D investment. Moreover, it promotes conservative policies to reduce private firms’ R&D investment in countries with civil law.
Journal: Applied Economics
Pages: 3278-3291
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206110
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206110
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3278-3291



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206107_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Qiang Cao
Author-X-Name-First: Qiang
Author-X-Name-Last: Cao
Author-Name: Jing Nie
Author-X-Name-First: Jing
Author-X-Name-Last: Nie
Author-Name: Wenmei Yu
Author-X-Name-First: Wenmei
Author-X-Name-Last: Yu
Title: Time-varying effects of structural fossil energy price shocks and economic policy uncertainty on new energy stock market: new evidence from China
Abstract: 
 We focus on the Chinese new energy stock market and explore the impacts of structural fossil energy price shocks and economic policy uncertainty (EPU). To this end, we synthesize the prices of three fossil energy sources, decompose the dynamics of fossil energy prices into energy supply shocks (SS), demand shocks (DS) and risk shocks (RS), and run a TVP-SVAR-SV model. Our findings show that SS significantly influence the new energy stock prices (NE) in that DS have a positive short-term impact for most of the sample periods while the mid- and long-term impacts of RS on NE are negative and larger than those of both SS and DS. We also find that in all three categories of shocks, EPU is the most important predictor negatively related to NE, indicating that a stable policy environment is essential to equity financing in the new energy market. Besides, different categories of EPU have varied impacts on NE in that exchange rate policy uncertainty (ERPU) has the most detrimental effect while the impact of trade policy uncertainty (TPU) shows a positive influence. Finally, we discuss the implications of these findings for both market regulators and investors participating in transactions of new energy stock portfolios.
Journal: Applied Economics
Pages: 3232-3246
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206107
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206107
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3232-3246



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206104_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Dongyu Wang
Author-X-Name-First: Dongyu
Author-X-Name-Last: Wang
Author-Name: Yong Qi
Author-X-Name-First: Yong
Author-X-Name-Last: Qi
Author-Name: Song Wang
Author-X-Name-First: Song
Author-X-Name-Last: Wang
Title: Can China’s belt and road investments improve the comprehensive international competitiveness of host countries?
Abstract: 
 Since China proposed the Belt and Road Initiative in 2013, the effect of driving economic development in host countries has intensified. This study examines the effect and spatial mechanisms of China’s Belt and Road investment on the comprehensive international competitiveness of 48 countries along the Belt and Road route in three dimensions: the basic requirements, efficiency enhancers, and economic freedom. The results revealed significant contributions and spatial spillover effects, whose spatial mechanisms can be implemented by upgrading the level of infrastructure development, optimizing the market environment, and enhancing the innovation capability. Therefore, it can be said that China’s Belt and Road investment can promote the development of the host country’s comprehensive international competitiveness from multiple perspectives. Moreover, research indicates that the infrastructure distance between the host country and China provides a broad space for Chinese investment, under whose effect Chinese investment contributes significantly and exhibits a positive spatial spillover effect, while market distance and innovation distance have the opposite effects.
Journal: Applied Economics
Pages: 3212-3231
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206104
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206104
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3212-3231

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206112_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Siyi Peng
Author-X-Name-First: Siyi
Author-X-Name-Last: Peng
Author-Name: Zijie Fan
Author-X-Name-First: Zijie
Author-X-Name-Last: Fan
Author-Name: Wenjie Hu
Author-X-Name-First: Wenjie
Author-X-Name-Last: Hu
Author-Name: Jiaqi Yuan
Author-X-Name-First: Jiaqi
Author-X-Name-Last: Yuan
Title: RCEP, global value chains and welfare effects: a quantitative analysis based on the distinction between intermediates and final goods
Abstract: 
 We quantify the trade and welfare effects of RCEP. Using a quantitative multi-country and multi-sector trade model that distinguishes key characteristics between intermediates and final goods, we illustrate the heterogeneous impacts of RCEP on trade and welfare. RCEP has trade creation effects within members but has trade diversion effects for non-members. There are substantial welfare gains within RCEP, but the decomposition results indicate that the sources of welfare gains differ, with China and ASEAN countries mainly originating from growth in the volume of trade, but at the cost of the deterioration in terms of trade. Trade liberalization in service also contributes to welfare gains, mainly from intermediates trade. India’s accession to RCEP improves the welfare of itself and its members, while its terms of trade deteriorate. We also find that with distinctions between intermediates and final goods, the heterogeneous effects of the two can be captured. Moreover, our model predicts more significant welfare gains than a model without input-output networks and sectoral linkages.
Journal: Applied Economics
Pages: 3334-3348
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206112
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206112
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:28:p:3334-3348



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206623_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Shengming Hu
Author-X-Name-First: Shengming
Author-X-Name-Last: Hu
Author-Name: Kai Lin
Author-X-Name-First: Kai
Author-X-Name-Last: Lin
Author-Name: Bei Liu
Author-X-Name-First: Bei
Author-X-Name-Last: Liu
Author-Name: Hui Wang
Author-X-Name-First: Hui
Author-X-Name-Last: Wang
Title: Does robotization improve the skill structure? The role of job displacement and structural transformation
Abstract: 
 The literature generally focuses on the impact of robots or artificial intelligence on the employment and wages, but ignores the effect of robotization on the skill structure and its underlying mechanisms and lacks empirical evidence from developing countries. We theoretically develop a task model by introducing the skill structure and empirically investigate the effect of robotization on the skill structure based on Chinese provincial panel data from 2006 to 2018. Results show that: (1) the development of robotization in China is conducive to improving the skill structure, and the baseline conclusion still holds even though adopting multiple indexes of skill structure and controlling the endogeneity bias. (2) Robotization generates not only job displacement effect by displacing unskilled workers with robots but also structural transformation effect by increasing the proportion of technology-intensive industries, which can improve the skill structure. (3) In coastal provinces with strong Internet foundation, information transmission capacity and labour protection intensity, high labour cost and ageing rate, robotization plays a stronger role in improving the skill structure. Moreover, robotization can induce the employment polarization. These conclusions can help avoid technical unemployment and promote the upgrading of the skill structure in China.
Journal: Applied Economics
Pages: 3415-3430
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206623
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206623
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:28:p:3415-3430



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206619_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hao Shen
Author-X-Name-First: Hao
Author-X-Name-Last: Shen
Author-Name: Jiang Xin
Author-X-Name-First: Jiang
Author-X-Name-Last: Xin
Author-Name: Yu Gao
Author-X-Name-First: Yu
Author-X-Name-Last: Gao
Title: Insights into guanxi and firm performance in China: an integrated lens of culture and guanxi
Abstract: 
 Chinese guanxi may contribute to the explanation of the rapid growth of Chinese firms. This study uses drinking culture, regarded as a typical feature of guanxi-oriented culture, and political ties, regarded as indicating the cultural embeddedness of guanxi, to empirically examine the effects of cross-level interaction between guanxi-oriented regional culture and culturally embedded managers’ guanxi on firm performance in China. Based on the data of A-share listed companies from 2016 to 2019, multiple linear regression analysis is used to test hypotheses. The results show that guanxi improves firm financial performance but damage technological innovation. The context-specific research offers novel insights and contextualized knowledge to enrich and extend the understanding of how guanxi affects firm growth and contribute to the knowledge of Chinese social philosophy.
Journal: Applied Economics
Pages: 3401-3414
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206619
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206619
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:28:p:3401-3414



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206617_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jorge R. Gonzales
Author-X-Name-First: Jorge R.
Author-X-Name-Last: Gonzales
Author-Name: Luis Varona
Author-X-Name-First: Luis
Author-X-Name-Last: Varona
Title: Food import demand in Peru, 1980-2021
Abstract: 
 This study analyses and explains food imports from Peru: 1980–2021. The econometric method uses Autoregressive Distributed Lagged (ARDL) models. The result of the stationarity property of I(0) and I(1) of the variables suggests the use of the ARDL model. The Granger causality result shows that variables explain food imports. The bound test cointegration showed a long-run cointegration to exist between foot imports and income, the real exchange rate, relative prices, price of fertilizers, and institution. The short-run analysis shows positive effects of relative prices and the real exchange rate towards food imports. And in the long-run analysis, we have found a positive relationship between food imports and economic growth. Also, there is a negative relationship between food imports and the growth of the real exchange rate, the price of fertilizers, and the opening of the Free Trade Agreement. Policies for self-sufficiency are recommended through investment policies in human capital for research in fertilizers and alternative organic manures; in financial capital for access to credit for small producers; in social capital, with support for sectors with lower productivity in rural areas to reduce dependence on the international market and the growing demand for food imports that puts food security at risk.
Journal: Applied Economics
Pages: 3371-3384
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206617
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206617
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:28:p:3371-3384



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206618_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Don U.A. Galagedera
Author-X-Name-First: Don U.A.
Author-X-Name-Last: Galagedera
Title: Planning for potential increases in disbursements and risk of managed funds conditional on desired short-term performance levels
Abstract: 
 As increasing disbursements (such as costs and fees) and risk (such as portfolio risk and leverage risk) may affect managed fund performance, analysts go beyond risk-adjusted return measures for performance appraisal. A methodology that assesses performance in a multidimensional framework is data envelopment analysis (DEA). A variant of DEA is inverse DEA. In this paper, inverse DEA is applied to determine output (investment income and benefit payments) targets for a given fund to perform at a desired efficiency level when increase in disbursements and risk at known levels is envisaged. An output-oriented inverse DEA model assuming variable returns to scale is formulated with theoretical underpinning. The proposed modelling framework ensures that, when an input augmented fund with estimated output targets is included in the observed fund set, the frontier of best performance established with the observed fund set does not change. The inverse DEA model is applied to a sample of Australian superannuation funds to demonstrate how a given fund may obtain pathways to improve its performance under different input-augmentation scenarios. As different pathways suggest feasible output targets, fund managers may find them valuable in forward planning.
Journal: Applied Economics
Pages: 3385-3400
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206618
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206618
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:28:p:3385-3400



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Anirudh Shingal
Author-X-Name-First: Anirudh
Author-X-Name-Last: Shingal
Title: The COVID-19 shock and services trade decline: potential for digitalization matters
Abstract: 
 Global services trade declined by 20% during 2020 with significant heterogeneity across countries, geographical regions and sectors. We present stylized facts and provide hypotheses and empirical analysis seeking to explain this heterogeneity. The decline is found to be correlated with COVID-19 case and mortality rates; stringency of imposed lockdowns; the decline in merchandise trade; and with different ways of transacting services trade. The latter depends on the sectoral composition of services trade across countries, which in turn emanates from more fundamental determinants of comparative advantage in services, generating testable hypotheses to explain the observed heterogeneity in services trade decline. Focusing on attributes of digitalization and the role of value-chains, we find that human-capital-intensive countries with favourable digital-trade policies and greater ability to leverage ICT infrastructure were associated with relatively smaller declines. Moreover, the expected role of GVC-integration in accentuating the services trade decline finds little support in empirical results across sectors providing evidence instead for the GVC-resilience narrative.
Journal: Applied Economics
Pages: 3349-3370
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206616
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206616
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:28:p:3349-3370



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206111_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Firat Demir
Author-X-Name-First: Firat
Author-X-Name-Last: Demir
Author-Name: Yi Duan
Author-X-Name-First: Yi
Author-X-Name-Last: Duan
Title: Target at the right level: aid, spillovers, and growth in sub-saharan Africa
Abstract: 
 Previous aid effectiveness literature is subject to aggregation bias and does not discuss aid spillover effects. Using spatial analysis and data from geocoded World Bank aid projects, this article investigates international aid effectiveness and aid spillovers at the sub-national level in 3,764 second-order administrative divisions (ADM2) in 48 countries in Sub-Saharan Africa over the period of 1995–2014. The empirical analysis is based on an instrumental variable approach and relies on nightlights data as a proxy for economic activity. The empirical results reveal three previously undocumented findings on aid effectiveness. First, we find that aid at the local level (ADM2) promotes economic growth at an economically and statistically significant level. Second, we uncover significantly positive aid spillovers across adjacent localities (ADM2). Third, aid flows at more aggregate levels (ADM1 and country level) have the opposite effect and reduce economic growth. The net effect of all aid variables is near zero and is within the range of coefficient estimates reported at the country level by previous papers. These results suggest that targeted aid projects can be effective in promoting economic growth.
Journal: Applied Economics
Pages: 3293-3333
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206111
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206111
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:28:p:3293-3333

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206626_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Maryam Dilmaghani
Author-X-Name-First: Maryam
Author-X-Name-Last: Dilmaghani
Author-Name: Jason Dean
Author-X-Name-First: Jason
Author-X-Name-Last: Dean
Title: Sexual orientation and intra-household specialization before and after the legal recognition of same-sex marriage in Canada
Abstract: 
 Using the Canadians Censuses of 2001, 2006, 2016, and the National Household Survey of 2011, this article compares intra-household specialization patterns of married and cohabiting couples by gender composition of households. Household specialization is operationalized in several ways. The first set of measures captures the earnings differentials between spouses, while the second set of measures relies on labour supply. In line with previous studies, we often find a lower level of intra-household specialization for both male-male and female-female couples, compared with their heterosexual counterparts. However, the difference with heterosexuals is much larger for female-female couples. When the most recent dataset is split by income level, it appears that the specialization gaps are largely driven by the more affluent households. We also find considerable heterogeneity in the patterns when the sample is split by generational status.
Journal: Applied Economics
Pages: 3460-3484
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206626
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206626
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:29:p:3460-3484



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Wen Yue
Author-X-Name-First: Wen
Author-X-Name-Last: Yue
Title: Human capital and domestic value added in exports: evidence from China
Abstract: 
 Based on the data of Chinese manufacturing firms from 2000 to 2006, this study takes the university enrolment expansion policy implemented by the Chinese government in 1999 as a quasi-natural experiment, and uses the difference-in-difference (DID) method to identify the effect of human capital expansion on the ratio of domestic value added in exports to gross exports (DVAR) of firms. Results show that human capital expansion significantly improves the firms’ DVAR through the ‘intermediate product substitution’ channel (promoting firms to use more domestic intermediate inputs to replace imported intermediate inputs in production) and the ‘markup’ channel (promoting the increase of firms’ markup). At the same time, significant heterogeneity exists in the effects of human capital expansion on the DVAR of different types of firms. These results provide new empirical evidence from the perspective of firm DVAR for further understanding of the microeconomic effects of human capital.
Journal: Applied Economics
Pages: 3533-3547
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206631
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206631
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:29:p:3533-3547



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206624_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yi Li
Author-X-Name-First: Yi
Author-X-Name-Last: Li
Author-Name: Fangyu Ye
Author-X-Name-First: Fangyu
Author-X-Name-Last: Ye
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Title: Impact of interaction between corporate environmental responsibility and corporate financial performance: the moderating effects of environmental regulation and internal control
Abstract: 
 This paper investigates the interaction between corporate environmental responsibility (CER) and corporate financial performance (CFP). Moreover, the moderating effect of environmental regulation and internal control on this relationship is also examined. Based on the panel data of 790 China’s A-shares listed companies of heavily polluting industries from 2006 to 2019, the results show that while CFP has a significant positive impact on CER, the positive impact of CER on CFP is not significant. Further analysis reveals that environmental regulation plays a positive moderating role in the impact of CFP on CER, and the positive impact of CER on CFP become significant in higher internal control quality firms. The results indicate that good environmental performance is a consequence of earlier good financial performance, and the costs of implementing sustainable and responsible projects are not always offset by revenues sufficient to generate increases in profit. Our findings suggest that firms should improve the quality of internal control and government should increase environmental supervision to achieve a virtuous circle connecting CER and CFP.
Journal: Applied Economics
Pages: 3431-3444
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206624
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206624
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:29:p:3431-3444



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Lingduo Jiang
Author-X-Name-First: Lingduo
Author-X-Name-Last: Jiang
Author-Name: Shuangshuang Liu
Author-X-Name-First: Shuangshuang
Author-X-Name-Last: Liu
Author-Name: Guofeng Zhang
Author-X-Name-First: Guofeng
Author-X-Name-Last: Zhang
Title: The impact of Asian Infrastructure Investment Bank on OFDI: evidence from China
Abstract: 
 This study empirically explores the impact of the Asian Infrastructure Investment Bank (AIIB) on outward foreign direct investment (OFDI). Based on data of Chinese cross-border investments during 2007–2020 obtained from the Bureau van Dijk (BvD) Zephyr database, we use a multi-period difference-in-differences estimation strategy to identify the construction of the AIIB throughout the period of 2014–2020. The results reveal that the establishment of the AIIB increases the possibility of China’s OFDI by an average of 15.45%; furthermore, the number of China’s OFDI projects arises by 20.40% and the amount of China’s OFDI flows boosts by 23.04% on average. Moreover, the heterogeneity analyses show that the AIIB prompts more OFDI flows to countries with higher economic developments, especially those technology- and export-oriented ones.
Journal: Applied Economics
Pages: 3517-3532
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206630
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206630
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:29:p:3517-3532



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206627_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: Use of distributional weights in cost–benefit analysis revisited
Abstract: 
 It is nearly 40 years since an earlier survey on the use of distributional weights in Cost-Benefitcost–benefit analysis was first published. Since then, a number of significant contributions have been made in the literature. It is therefore timely to revisit the issue by focusing on the key reasons why distributional weights are so necessary. We present a new justification for using unequal income distributional weights in CBA, and and reaffirm a completely neglected reason for adopting distribution weights. We derive the weights from a formulation of the SWF. We specify the minimum value judgmentsjudgements for the SWF that everyone can agree on who accepts the fundamentals of welfare economics. As many CBA practitioners have ignored using distribution weights, inadequate attention has been given to how they can be estimated. The final objective of this paper is to highlight the main methods for estimating these weights, and and to present applications of these methods.
Journal: Applied Economics
Pages: 3485-3498
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206627
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206627
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:29:p:3485-3498



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xiaodong Chen
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Chen
Author-Name: Haoming Mi
Author-X-Name-First: Haoming
Author-X-Name-Last: Mi
Author-Name: Peng Zhou
Author-X-Name-First: Peng
Author-X-Name-Last: Zhou
Title: Whether to decentralize and how to decentralize? The optimal fiscal federalism in an endogenous growth model
Abstract: 
 We develop an endogenous growth model with public consumption and infrastructure services provided by two-tier governments. Growth performance and welfare implication are compared under the centralized and decentralized fiscal federal systems. In general, there is a trade-off between welfare and growth due to conflicts of interest and asymmetric information between central and local governments. By numerical simulations, we show that the optimal fiscal federalism should impose restrictions on expenditure−GDP ratio, rather than on expenditure−budget ratio or central−local expenditure ratio, because expenditure−GDP ratio can align the incentives of the two-tier governments. Furthermore, it is suggested that decentralized fiscal systems are generally superior to the centralized system because the efficiency loss overweighs the agency cost. The model is then applied to analyzing different growth experiences in the West and China by institutional and cultural differences.
Journal: Applied Economics
Pages: 3499-3516
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206629
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206629
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:29:p:3499-3516



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206625_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Kaiming Cheng
Author-X-Name-First: Kaiming
Author-X-Name-Last: Cheng
Author-Name: Shucheng Liu
Author-X-Name-First: Shucheng
Author-X-Name-Last: Liu
Title: Does urbanization promote the urban–rural equalization of basic public services? Evidence from prefectural cities in China
Abstract: 
 The question of how urbanization affects the urban–rural equalization of basic public services (BPS) remains unexplored, although BPS equalization is an important means of achieving common prosperity. Based on the BPS supply and demand perspective, we examine the path mechanisms through which urbanization affects urban–rural BPS equalization. Based on panel data from Chinese prefectural cities from 2003 to 2020, a TOPSIS model, combined CRITIC-entropy weights and an information entropy function, are used to measure the level of urban–rural BPS equalization. Considering the spatial spillover effect of urbanization, a dynamic spatial Durbin model is constructed to empirically examine the impact of urbanization. The study found that, overall, the direct and indirect effects of urbanization on urban–rural BPS equalization are significantly positive, and urbanization is conducive to urban–rural BPS equalization improvement in cities and surrounding areas. The effect of urbanization on urban–rural BPS equalization significantly varies between different regions. The study concludes that the process of people-centred urbanization should be accelerated to optimize the spatial layout of BPS, promote high-quality economic development and achieve common prosperity.
Journal: Applied Economics
Pages: 3445-3459
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206625
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206625
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:29:p:3445-3459

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206634_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Simona Bigerna
Author-X-Name-First: Simona
Author-X-Name-Last: Bigerna
Author-Name: Maria Chiara D’Errico
Author-X-Name-First: Maria Chiara
Author-X-Name-Last: D’Errico
Author-Name: Silvia Micheli
Author-X-Name-First: Silvia
Author-X-Name-Last: Micheli
Author-Name: Paolo Polinori
Author-X-Name-First: Paolo
Author-X-Name-Last: Polinori
Title: Environmental-economic efficiency for carbon neutrality: the role of eco-innovation, taxation, and globalization in OECD countries
Abstract: 
 The aim of this paper is to examine the relationship between three determinants – environmental patents, environmental taxation and trade globalization – and the environmental-economic efficiency of 29 OECD countries between 2005 and 2020. Using the Global Malmquist-Luenberger index, this research computes the environmental productivity growth and its main drivers – the catch-up and the frontier shift terms. Besides, dynamic panel linear models are applied to investigate how the three institutional variables affect the dynamics of the computed efficiency indices. Results are as follows: firstly, eco-innovation is the most relevant factor in boosting the environmental productivity growth, pushing forward the technological frontier, and spurring the catch-up term. Secondly, environmental taxation is an ineffective policy instrument in promoting the sustainable growth and technological frontier advancements, having positive impacts only on the catch-up term. Thirdly, trade globalization reveals to hinder the sustainable growth and its two main drivers.
Journal: Applied Economics
Pages: 3568-3581
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206634
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206634
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:30:p:3568-3581



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2207812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Antonella Biscione
Author-X-Name-First: Antonella
Author-X-Name-Last: Biscione
Author-Name: Chiara Burlina
Author-X-Name-First: Chiara
Author-X-Name-Last: Burlina
Author-Name: Annunziata de Felice
Author-X-Name-First: Annunziata
Author-X-Name-Last: de Felice
Title: Knowledge flows and innovation: a pseudo-panel approach
Abstract: 
 This study investigates whether the effect of vertical and horizontal knowledge sources affect technological innovation for a sample of firms in 10 European countries. The empirical analysis is based on a unique dataset extracted from the Community Innovation Survey for the period 2002 to 2012. Results, using a pseudo-panel approach at country-industry level, reveal that vertical knowledge from suppliers strongly affects both product and process innovation, while knowledge flows from clients influence in particular product innovation. Finally, horizontal knowledge flows from competitors appear to have an effect on process innovation. These findings are validated with an instrumental variable approach using Lewbel’s technique to internally generate reliable instruments, when external ones are not suitable. Overall, results seem to suggest the need for ad-hoc policies to foster knowledge flows among firms in different phases of the production process to boost their innovative capacity both for products and processes.
Journal: Applied Economics
Pages: 3636-3651
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2207812
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2207812
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:30:p:3636-3651



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2207813_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xiaozhen Pan
Author-X-Name-First: Xiaozhen
Author-X-Name-Last: Pan
Author-Name: Gengxi Xu
Author-X-Name-First: Gengxi
Author-X-Name-Last: Xu
Title: The impact of managers’ IT experience on the enterprises’ digital transformation: Empirical evidence from China
Abstract: 
 Digital transformation has become a primary strategic choice of enterprises in recent years. We use Chinese A-share listed companies in Shanghai and Shenzhen as samples, use text analysis to describe the degree of enterprises’ digital transformation, and empirically test the impact of managers’ information technology (IT) experience on the enterprises’ digital transformation. The research results show that the managers’ IT experience can significantly promote the enterprises’ digital transformation and has strong robustness. Heterogeneity analysis shows that only when IT managers have information technology-related work experience, greater power, and stronger salary incentives can their information technology experience effectively promote enterprises’ digital transformation. Further research shows that the IT experience of directors, supervisors, and executives all contributes to the enterprises’ digital transformation. This study guides human resource management in enterprises’ digital transformation in developing countries. Enterprises should focus on diversifying senior management team backgrounds and strengthen the internal training and external introduction of IT management talents.
Journal: Applied Economics
Pages: 3652-3668
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2207813
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2207813
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:30:p:3652-3668



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206636_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rupamanjari Sinha Ray
Author-X-Name-First: Rupamanjari
Author-X-Name-Last: Sinha Ray
Title: Can environmental SDGs moderate trade and environment nexus? A South Asian context based on panel ARDL approach
Abstract: 
 The study renews the debate over trade openness and environmental quality by empirically examining the moderating role of environmental SDGs, viz., affordable and clean energy (SDG 7) and climate action (SDG 13), in South Asia. Static panel regression analysis is undertaken, followed by a panel ARDL approach and the Engle-Granger causality test. All eight South Asian countries and a study period of 2002–2019 constitute the panel data set for the present analysis. The result suggests that while SDG 7 is a game changer in doing away with the pollution haven, the moderating impacts of SDG 7 and SDG 13 further reinforce the EKC hypothesis in the region. Both SDG 7 and SDG 13 exhibit long-run moderating effects on the pollution haven, and SDG 13 is observed to have a short-run moderating causal impact. The novel introduction of environmental SDGs to resolve the classical trade and environment debate has policy implications for simultaneous advancements towards SDG 7 and SDG 13. The study is valuable from the perspective of international cooperation, particularly when South Asian economies are not beyond the gloom of global permacrisis.
Journal: Applied Economics
Pages: 3600-3620
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206636
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206636
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:30:p:3600-3620



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yanjiang Zhang
Author-X-Name-First: Yanjiang
Author-X-Name-Last: Zhang
Author-Name: Xiangjun Wang
Author-X-Name-First: Xiangjun
Author-X-Name-Last: Wang
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Author-Name: Jiayang Song
Author-X-Name-First: Jiayang
Author-X-Name-Last: Song
Title: Rumour of administrative division adjustment and regional housing markets: housing listings, prices and speculation
Abstract: 
 We trace the rumour that two undeveloped regions were to be administratively merged into Beijing, which is the capital of China. Applying a difference-in-difference approach, we find that housing listing prices in the two undeveloped regions declined by 25.1% after local governments clarified the rumour. Our results are robust after considering possible confounders such as contemporary housing market policies, business cycles and migrations. The price reduction caused by the rumour collapse averages to 347–396 thousand yuan, a comparable number to the value of ‘Hukou’ in Beijing. Finally, we show that herding and speculation accelerate the price bust after the rumour collapses.
Journal: Applied Economics
Pages: 3549-3567
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206633
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206633
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:30:p:3549-3567



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206992_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Malick Kebe
Author-X-Name-First: Malick
Author-X-Name-Last: Kebe
Author-Name: Saralees Nadarajah
Author-X-Name-First: Saralees
Author-X-Name-Last: Nadarajah
Title: Change point analysis of the effects of the Russo-Ukrainian war on wheat flour prices in selected African countries
Abstract: 
 Using change point analysis, we have examined price changes in wheat flour prices as provided by the Food and Agricultural Organization Tool in Angola, Mauritania, Egypt, Namibia, and South Africa. Change point analysis confirms that prices had been on an upward trajectory even before the war in Eastern Europe. The war caused domestic prices to remain high. African countries must find a way to be better prepared for the next supply shock of this variety and magnitude.
Journal: Applied Economics
Pages: 3621-3635
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206992
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206992
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:30:p:3621-3635



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2206635_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yong Li
Author-X-Name-First: Yong
Author-X-Name-Last: Li
Author-Name: Tong Niu
Author-X-Name-First: Tong
Author-X-Name-Last: Niu
Author-Name: Xingyi Wang
Author-X-Name-First: Xingyi
Author-X-Name-Last: Wang
Title: Exploration of industrial risk contagion characteristics and mechanism under geopolitical events: evidence from China
Abstract: 
 Based on the TVP-VAR-DY and TVP-VAR-BK models, this article examines the characteristics and mechanisms of systemic risk contagion in the Chinese industries under geopolitical events by selecting data spans from 1 January 2010 to 31 August 2022. First, dynamic analysis of full-sample risk contagion shows that there is a significant climb in total risk during geopolitical events. Then the static analysis of risk contagion in the full sample specifically shows the correlation between risk contagion and industry chain between the financial and real sectors. Besides, the sub-sample analysis illustrates that during geopolitical events such as the Sino-US Trade War, the COVID-19 Pandemic and the Russia-Ukraine Conflict, Chinese industrial stock indexes show short-term risk spillovers from key industries related to geopolitical events, and gradually spread along the industrial chain in the long run compared to the Chinese ‘Stock Market Crash’. Through further mechanistic tests, we find that the irrational behaviour of investors in the market exacerbates short-term risk contagion, while the financial distress of real firms due to financing constraints exacerbates long-term risk contagion. In addition, geopolitical risk, economic uncertainty, and policy uncertainty as macro variables also have an impact on the short-run and long-run risk contagion.
Journal: Applied Economics
Pages: 3582-3599
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206635
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206635
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:30:p:3582-3599

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208335_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Astrid Loretta Ayala
Author-X-Name-First: Astrid Loretta
Author-X-Name-Last: Ayala
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Adrian Licht
Author-X-Name-First: Adrian
Author-X-Name-Last: Licht
Title: Score function scaling for QAR plus Beta-t-EGARCH: an empirical application to the S&P 500
Abstract: 
 In the literature on score-driven models, alternative choices of the scaling parameters of the conditional score terms are used, but the optimal choice of those parameters is an open question. Although there are score-driven models for which the choice of the scaling parameters is irrelevant, there are important score-driven models for which score-driven scale filters appear in the information matrix, and the choice of the scaling parameters is relevant. We focus on the quasi-autoregressive (QAR) plus Beta-$t$t-EGARCH (exponential generalized autoregressive conditional heteroscedasticity) model, by using data on the Vanguard Standard & Poor’s 500 (S&P 500) exchange-traded fund (VOO) and all available S&P 500 stocks for the period of 2013–2023. For QAR plus Beta-$t$t-EGARCH, each updating term is the product of a scaling parameter and a conditional score, and we use specific alternative scaling parameters from the literature. For different scaling parameters in the scale filter (volatility), alternative location and scale filters coincide. For different scaling parameters in the location filter (expected return), alternative location and scale filters differ significantly. For the statistical and volatility forecasting performances of VOO and most of the S&P 500 stocks, the best-performing scaling parameter for the score-driven location is the conditional inverse information matrix.
Journal: Applied Economics
Pages: 3684-3697
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208335
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208335
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3684-3697



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208843_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Eduardo Dacillo Roca
Author-X-Name-First: Eduardo Dacillo
Author-X-Name-Last: Roca
Title: Do birds of the same feather flock together? The cultural geography of global housing price interaction
Abstract: 
 The literature documents that cultural factors affect housing or real estate markets and their interactions. Given this, we map global housing markets into different cultural blocs, and study the dynamics of price interaction among them. We investigate the extent and manner of price interaction within and between cultural blocs using a battery of econometric tests and network analyses. We confirm that housing markets within the same blocs are highly correlated, cointegrated and react to each other more quickly than those among different blocs. Our results provide a new perspective on the important role of culture in the transmission of linkages among housing markets globally and have vital implications for the global coordination of policies to stabilize housing markets.
Journal: Applied Economics
Pages: 3760-3777
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208843
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208843
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3760-3777



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208842_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zibin Zhang
Author-X-Name-First: Zibin
Author-X-Name-Last: Zhang
Author-Name: Xu Ou
Author-X-Name-First: Xu
Author-X-Name-Last: Ou
Author-Name: Wenxin Cai
Author-X-Name-First: Wenxin
Author-X-Name-Last: Cai
Title: How do firms respond to the tighter COD discharge standards? Evidence from the pulp and paper industry in China
Abstract: 
 The chemical oxygen demand (COD) emissions from the pulp and paper industry in China have declined continuously since the tighter COD discharge standards were implemented in 2008. Using firm-level data from 2003 to 2013, we investigate how China’s pulp and paper firms would respond to the tighter COD discharge standards with a difference-in-differences design. We find that the tighter COD discharge standards have significant causal effects to induce the pulp and paper firms to reduce their COD emissions primarily through adopting cleaner production. However, the effectiveness of the tighter COD discharge standards depends on monitoring and enforcement activities as well as other regulations accompanying with the tighter COD discharge standards, all of which have become strengthened since China’s 11th Five-Year-Plan (FYP, 2006–2010). While strengthened environmental regulations since the 11th FYP are from the top leadership of the Chinese government in order to deal with the increasing environmental degradation, the underlying driving force of the strengthened environmental regulations is from the household demand for better environmental quality as income increases. This study enriches literature not only on firms’ responses to environmental regulations in developing countries but also on environmental regulations and technology adoption as well as environmental enforcement and compliance.
Journal: Applied Economics
Pages: 3741-3759
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208842
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208842
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3741-3759



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208338_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Qin Zhu
Author-X-Name-First: Qin
Author-X-Name-Last: Zhu
Author-Name: Xiangxiang Zhou
Author-X-Name-First: Xiangxiang
Author-X-Name-Last: Zhou
Title: Regional differences and dynamic evolution of digital trade: data from China
Abstract: 
 Revealing regional differences and evolutionary patterns is a crucial component of studying digital trade development. This paper constructs an evaluation index system for digital trade development and assesses the level of digital trade development in mainland China of 30 provinces from 2013 to 2020. Using methods such as Dagum Gini coefficient, this study investigates the differences in regional development and the spatial dynamic evolution of digital trade development. The findings indicate that (1) while the overall level of digital trade in China is increasing, it manifests unbalanced growth. Additionally, inter-regional difference, as opposed to intra-regional difference, account for the primary source of digital trade development difference, contributing an annual average of 71.699%. (2) The kernel density distribution of digital trade is gradually narrowing. The absolute difference in the level of digital trade development between China and the four regions (east, central, west, and northeast) is progressively diminishing over time. (3) The Moran’s I index is positive, indicating a strong spatial correlation among digital trade development. In the eastern and western regions, there are ‘high-high’ and ‘low-low’ clusters between adjacent provinces; the dynamic transfer of digital trade levels occurs between provinces of adjacent levels, demonstrating the positive effect of proximity.
Journal: Applied Economics
Pages: 3722-3740
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208338
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3722-3740



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Vasilios-Christos Naoum
Author-X-Name-First: Vasilios-Christos
Author-X-Name-Last: Naoum
Author-Name: Georgios Papanastasopoulos
Author-X-Name-First: Georgios
Author-X-Name-Last: Papanastasopoulos
Author-Name: Panagiotis Selekos
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Selekos
Author-Name: Orestes Vlismas
Author-X-Name-First: Orestes
Author-X-Name-Last: Vlismas
Title: Exploring the asymmetric cost behaviour in the context of European non-listed firms
Abstract: 
 This study provides international empirical evidence for the asymmetric cost behaviour of operating expenses in the context of the European non-listed firms. We employed a data sample of 4,177,625 firm years observations from Amadeus Database for the period 2009–2017 to explore the asymmetric cost behaviour phenomenon at the EU-28 countries pool and country level. Substantial variation in the direction of the asymmetric cost behaviour, across countries and firm size clusters, has been observed. However, in a considerable number of cases operating expenses exhibit symmetric cost behaviour. We conjecture that the reasons behind the observed pattern of asymmetric cost behaviour in the organizational setting of non-listed firms are the relative low availability of entrepreneurial economic resources and the presence of entrepreneur which might affect the resource allocation decision-making process.
Journal: Applied Economics
Pages: 3778-3803
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208844
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208844
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3778-3803



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208334_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Nicolas Williams
Author-X-Name-First: Nicolas
Author-X-Name-Last: Williams
Title: Sector specificity of training
Abstract: 
 Human capital acquired through employer-provided training is pervasive in labour markets and an important determinant of post-schooling wage growth. The literature has focused on understanding under what conditions this training will lead to higher wages. Here I offer another aspect for consideration: Does the proximity of the current job to past jobs affect the return to training? In particular, I look at whether the wage return to training acquired at a previous employer depends upon the relative ‘proximity’ of the worker’s past employer to their current one, where proximity is measured by whether the worker received the training in the same industry or occupation as the current job. I investigate this using data from the British Household Panel Survey, with both fixed effects and instrumental variable estimation. The results suggest that both current and previous employer training spells are important determinants of wages, and both need to be included in wage regressions. Evidence further suggests that the return to formal training is highest if the training was received in a previous job that was in the same industry and occupation as the current one.
Journal: Applied Economics
Pages: 3669-3683
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208334
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208334
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3669-3683



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208336_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ahmed Bossman
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bossman
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Title: Hedge and safe-haven attributes of faith-based stocks vis-à-vis cryptocurrency environmental attention: a multi-scale quantile regression analysis
Abstract: 
 The attractiveness of the equities of the Islamic faith-compliant companies as a hedge or possible diversifier has been underscored; however, there is a lack of empirical research on their safe-haven and hedge attributes against changes in the level of cryptocurrency environmental attention (ICEA). We examine whether various distributions of the ICEA possess a significant predictive power on various quantiles of Islamic sectoral stock returns by employing weekly data on the ICEA and Shariah-compliant stocks from 10 sectors of economic activity and base their multi-scale analysis on the complete ensemble empirical mode decomposition (CEEMDAN) approach. We present the asymmetric causality-in-means and quantile-on-quantile regression between the ICEA and Islamic stocks. The empirical results show a significant predictive power of the ICEA on various quantiles of Islamic sectoral stocks in the medium- and long term. We find that the safe-haven and hedging attributes of investments in Islamic stocks are sector-dependent across the medium- and long-term scales. Hence, our findings emphasize that based on market states, possible safe-haven attributes, diversification opportunities, and hedges for cross-sectoral investments with Islamic stocks are viable along various investment horizons for diverse levels of cryptocurrency environmental attention. These findings provide original valuable insights for portfolio management and improving financial stability.
Journal: Applied Economics
Pages: 3698-3721
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208336
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208336
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3698-3721

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208850_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Luca Farè
Author-X-Name-First: Luca
Author-X-Name-Last: Farè
Author-Name: Marcus Dejardin
Author-X-Name-First: Marcus
Author-X-Name-Last: Dejardin
Author-Name: Eric Toulemonde
Author-X-Name-First: Eric
Author-X-Name-Last: Toulemonde
Title: Bankruptcy recovery rate and small businesses’ innovation
Abstract: 
 Small businesses often face a high risk of bankruptcy and harsh financing conditions, which can hamper them from engaging in innovation. This paper investigates whether a bankruptcy system that guarantees a good recovery rate for creditors in case of firms’ liquidation stimulates small businesses’ innovation investments through lower interest rates and therefore easier access to credit. With the help of a borrower-lender model, we derive insights about the interactions between bankruptcy recovery rate, borrowing interest rates and firms’ investments in innovation. The model gives theoretical underpinnings for a subsequent empirical analysis. By using a cross-country sample of micro (1–9 employees)-, small (10–49 employees)-, and medium (50–249 employees)-sized enterprises (MSMEs), our study provides three main results. It shows that an increase in the bankruptcy recovery rate a) is positively associated to MSMEs’ investments in innovation (investment effect); b) reduces the share of MSMEs that are credit constrained because the cost of borrowing is too high (constraint effect); c) reduces the interest rates dispersion for highly profitable MSMEs (dispersion effect). Overall, our findings suggest that improving creditors recovery rate can help promote the innovative behaviour of small businesses through easier financing conditions.
Journal: Applied Economics
Pages: 3870-3903
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208850
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208850
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3870-3903



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208851_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yuping Deng
Author-X-Name-First: Yuping
Author-X-Name-Last: Deng
Author-Name: Chunmei Rong
Author-X-Name-First: Chunmei
Author-X-Name-Last: Rong
Author-Name: Rong Chen
Author-X-Name-First: Rong
Author-X-Name-Last: Chen
Title: Does manufacturing servitization reduce emissions intensity? evidence from China
Abstract: 
 This paper investigates the impact on polluting emissions as a result of manufacturing industries in China offering services as well as products. We merge detailed firm-level statistics covering 2000 to 2011, and use two-way linear fixed effects regression to control for firm and year heterogeneities and a host of control variables. The empirical results show that manufacturing servitization significantly reduces the emission intensity of firms. This effect is achieved by improving the total factor productivity of firms, optimizing the efficiency of energy use, and increasing the share of the highly-skilled labour force. Moreover, the emission reduction effect of manufacturing servitization is more profound in the eastern and central regions, pollution-intensive industries, non-state-owned firms, and processing trade firms. In addition, our extended analysis shows that the emission reduction effects of manufacturing servitization can be strengthened through trade liberalization and cohort study. The major policy implication is that governments should undertake industrial policies that reinforce the positive effects of manufacturing servitization in order to achieve win-win outcomes in manufacturing upgrading and environmental protection.
Journal: Applied Economics
Pages: 3904-3919
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208851
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208851
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3904-3919



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208849_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Wen-Ling Chen
Author-X-Name-First: Wen-Ling
Author-X-Name-Last: Chen
Author-Name: Pei-Chin Hong
Author-X-Name-First: Pei-Chin
Author-X-Name-Last: Hong
Title: Compulsory disclosure regulation: the effect of ESG on extreme risk
Abstract: 
 We examined the impact of compulsory disclosure regulations on the relationship between the Environmental, Social and Governance (ESG) and firm-specific extreme risk. We used a difference-in-difference approach to solve endogenous concerns and found that the negative impact of the ESG score on extreme risk is more significant after announcing compulsory disclosure regulations. Additionally, we demonstrated that this effect becomes more substantial when firms issue green bonds. Finally, the subsample tests showed that the compulsory influence of the government is more evident in firms with high financial transparency and firms with low crash risk. Our empirical findings had policy implications for governments, regulators, and investors.
Journal: Applied Economics
Pages: 3856-3869
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208849
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208849
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3856-3869



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208848_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Imlak Shaikh
Author-X-Name-First: Imlak
Author-X-Name-Last: Shaikh
Author-Name: Priyanka Vallabh
Author-X-Name-First: Priyanka
Author-X-Name-Last: Vallabh
Title: Impact of policy uncertainty on gold price in India: evidence from multi commodity exchange (MCX) India and World Gold Council prices
Abstract: 
 India is one of the largest consumers of gold but remains largely unexplored and requires proper attention from investors, regulators and policymakers. Our study aims to uncover the relationship between policy uncertainty and gold prices in India, considering a timeline from 2004 to 2023. Using India EPU and geopolitical uncertainty-related index, the empirical estimation was performed in a time series framework using standard OLS and augmented regression using data from MCX-India and WGC prices. Our statistical investigation signals that policy uncertainty and gold prices in India are positively associated. This implies a higher degree of policy uncertainty and a higher gold price. Monetary policy uncertainty and interest rate changes shows an asymmetric impact on the gold price in India; the effects were more pronounced after 2015. Furthermore, policy uncertainty contains information explaining gold futures prices and has a two-month lag impact. Thus, gold trading in India is sensitive to the economic outlook of the economy and policy uncertainty. Gold imports in India have an adverse effect on gold prices. It is also reported that the INR/USD exchange rate plays a vital role in gold price setting. Hence, the study suggest that India’s government should develop a healthy gold ecosystem and gold-policy.
Journal: Applied Economics
Pages: 3837-3855
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208848
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208848
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3837-3855



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208846_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Loan Cong To Nguyen
Author-X-Name-First: Loan Cong To
Author-X-Name-Last: Nguyen
Author-Name: Michael O’Connor Keefe
Author-X-Name-First: Michael O’Connor
Author-X-Name-Last: Keefe
Title: News feeds are no longer free: policy implications from Australia
Abstract: 
 In 2021, the Australian Government introduced its News Media and Digital Platforms Mandatory Bargaining Code (‘the Code’) to support the sustainability of the country’s journalism. Using Event Study Methodology, we find a collectively positive stock market reaction in the news media industry to the introduction of the Code, although different patterns amongst individual firms and groups by size to the different stages of the Code’s development. The large-firm group records larger gain in terms of equity value, but a lower percentage gain than small and medium enterprises. The economic importance of our findings reinforces the Australian Government’s regulatory approach as a means to sustain the legitimate interest of businesses and consumers in the news media sector.
Journal: Applied Economics
Pages: 3822-3836
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208846
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208846
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3822-3836



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208845_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Abdoulaye Kane
Author-X-Name-First: Abdoulaye
Author-X-Name-Last: Kane
Author-Name: Jimmy Lopez
Author-X-Name-First: Jimmy
Author-X-Name-Last: Lopez
Title: Productivity and regulation in the construction sector: evidence for OECD countries
Abstract: 
 Labour productivity growth in the construction sector has been very weak in recent decades in most OECD countries. This paper addresses this issue based on a panel of 23 countries over the period 1995–2015. First, we use the Ackerberg, Caves, and Frazer (2015) method to propose a multifactor explanation for this lack of productivity growth: (i) average TFP growth is close to zero and even negative for most countries; (ii) average contributions to growth of capital and intermediate inputs are positive but weak, respectively of 0.05% and 0.90% per year, and much smaller than in the manufacturing sector over the same period (respectively of 0.40% and 3.10% per year). Then, we investigate whether reforms of regulations specific to the construction sector might boost productivity there. Using regulation indicators from the ‘Doing Business Report’, we find a negative impact of these regulations on TFP, but not on the intensities of capital and intermediate inputs. Our results suggest that reducing the construction sector regulations might bolster productivity: a switch to the lightest regulations would lead to a long-term TFP increase of 6% on average.
Journal: Applied Economics
Pages: 3805-3821
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208845
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208845
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3805-3821



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208852_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ruocan Lu
Author-X-Name-First: Ruocan
Author-X-Name-Last: Lu
Author-Name: Zhihui Yang
Author-X-Name-First: Zhihui
Author-X-Name-Last: Yang
Title: Analysis on the structure and economic resilience capacity of China’s regional economic network
Abstract: 
 This paper analyzes the heterogeneous influence of economic networks on urban economic resilience capacity from different network characteristics, providing an innovative research perspective and theoretical framework for the economic resilience capacity of urban clusters. The urban economic elasticity is measured by multiple indicators and constructed economic network using night light data, the complex network approach was combined with spatial econometrics to analyse the contribution of economic network linkages and economic network locations to regional economic resilience capacity. The results show that: urban economic network linkage has a significant positive impact on urban economic resilience capacity, and the polycentric pattern of urban clusters has a driving effect on this impact; in contrast, the influence of urban network location on economic resilience capacity has an inverted u-shaped curve. Compared with non-smart cities, regions in smart cities are better able to promote urban economic resilience capacity through economic networks, and the impact of economic networks on regional economic resilience capacity has network external spillover effects beyond geographical distance, The results of the study infer that cities in urban agglomeration should rationalize network locations, and build a coordinated urban agglomeration network structure to enhance economic resilience capacity of the regional economy.
Journal: Applied Economics
Pages: 3920-3938
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208852
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208852
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3920-3938

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208854_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ahmed Kamara
Author-X-Name-First: Ahmed
Author-X-Name-Last: Kamara
Title: On the properties of the labour wedge: hours worked and government transfers in perspective
Abstract: 
 Questions surrounding the labour wedge and the tax wedge in the United States are complicated by the fact that, historically, there is a lack of coherent relationship between the series of hours worked (based on standard measurements) and that of the tax wedge. This has been cited as grounds for discounting the tax wedge as a viable explanation for the behaviour of the labour wedge. In this paper, I explore an alternative measurement of labour hours in the United States in a bid to clear up some of the morass surrounding the tax wedge and hours worked. In the process, I show that, the labour wedge is rather more aligned with available labour hours over the business cycle than it does actual hours worked. Moreover, cyclical properties of the available hours series, however puzzling, are explained by the presence of a government transfer scheme which I introduce in the household side of the market. Also, the presence of the transfer scheme alters the marginal rate of substitution (MRS) between consumption and leisure, and by doing so, reverses the cyclical properties of the tax wedge. This puts the tax wedge in alignment with the labour wedge over the business cycle.
Journal: Applied Economics
Pages: 3953-3966
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208854
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208854
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:33:p:3953-3966



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2209309_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yuanbin Xu
Author-X-Name-First: Yuanbin
Author-X-Name-Last: Xu
Author-Name: Yuchen Wang
Author-X-Name-First: Yuchen
Author-X-Name-Last: Wang
Author-Name: Fucai Lu
Author-X-Name-First: Fucai
Author-X-Name-Last: Lu
Author-Name: Dan Sheng
Author-X-Name-First: Dan
Author-X-Name-Last: Sheng
Title: A study of the impact of digital inclusive finance on firm value from the perspective of financing constraints
Abstract: 
 The existing research on the impact of digital inclusive finance on corporate behaviour is relatively extensive, but the research on the impact of digital inclusive finance on corporate value is ignored. To fill in this gap, this study examines the impact of digital inclusive finance on firm value from the perspective of financing constraints, utilizing data on A-share listed companies in China from 2012 to 2019. We found that digital inclusive finance helps increase corporate value. And digital inclusive finance uses digital technology to alleviate financing constraints and improve the credit supply, which in turn increases firm value. Moreover, the impact of digital inclusive finance on firm value demonstrates heterogeneity. Compared with other firms, digital inclusive finance has a greater value-enhancing effect on small-scale and private firms. Our findings suggest that increasing the level of digital inclusive finance in developing countries can help enhance firm value.
Journal: Applied Economics
Pages: 4033-4047
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2209309
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2209309
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:33:p:4033-4047



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208857_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Pradip Banerjee
Author-X-Name-First: Pradip
Author-X-Name-Last: Banerjee
Author-Name: Soumya Guha Deb
Author-X-Name-First: Soumya
Author-X-Name-Last: Guha Deb
Title: Working capital management efficiency, managerial ability, and firm performance: new insights
Abstract: 
 This paper studies the association of managerial ability (MA) with eﬃciency in working-capital management (WCM) of firms. Using a large sample of 1,14,173 firm-year observations between 1988 and 2018 in the US, we show a negative contemporaneous relationship between MA and efficiency of WCM, indicating that more able managers manifest higher WCM efficiency and thereby affect firm performance positively through a mediating channel of WCM. Further, we show that this association is non-linear in nature with managers focusing more on long-term value-enhancing projects for the firm beyond a threshold MA level, having already attained the optimal efficiency in WCM. The results remain robust after a series of robustness tests.
Journal: Applied Economics
Pages: 4001-4018
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208857
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208857
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:33:p:4001-4018



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208855_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mohamed Hedi Lahouel
Author-X-Name-First: Mohamed Hedi
Author-X-Name-Last: Lahouel
Author-Name: Moez Ben Tahar
Author-X-Name-First: Moez Ben
Author-X-Name-Last: Tahar
Author-Name: Sarra Ben Slimane
Author-X-Name-First: Sarra Ben
Author-X-Name-Last: Slimane
Author-Name: Mohamed Ali Houfi
Author-X-Name-First: Mohamed Ali
Author-X-Name-Last: Houfi
Title: The dynamic effects of fiscal policy and fiscal multipliers in Tunisia
Abstract: 
 This study analyses the macroeconomic effects of fiscal policy by estimating fiscal multipliers for Tunisia. The study is based on the Structural Vector Autoregression (SVAR) model and uses quarterly data from 2000Q1 to 2019Q4. Five main insights can be drawn from these results. First, fiscal multipliers are moderate, as suggested by earlier studies. Second, spending multipliers generated by total and consumption expenditures, respectively, are small, implying that government spending generates substantial crowding out effects. Third, investment multipliers are larger than consumption multipliers. Fourth, fiscal multipliers have declined in the post-2011 revolution period, suggesting that spending multipliers are lower during times of recession. Fifth, domestic supply shocks could shape the effects of fiscal policy and cause spending multipliers to fall.
Journal: Applied Economics
Pages: 3967-3985
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208855
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208855
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:33:p:3967-3985



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208856_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: J. Wesley Burnett
Author-X-Name-First: J. Wesley
Author-X-Name-Last: Burnett
Author-Name: Calvin Blackwell
Author-X-Name-First: Calvin
Author-X-Name-Last: Blackwell
Title: Graphical causal modelling: an application to identify and estimate cause-and-effect relationships
Abstract: 
 This paper offers an accessible discussion of graphical causal models and how such a framework can be used to help identify causal relations. A graphical causal model represents a researcher’s qualitative assumptions. As a result of the credibility revolution, there is growing interest to properly estimate cause-and-effect relationships. Using several examples, we illustrate how graphical models can and cannot be used to identify causation from observational data. Further, we offer a replication of a previous study that explored college enrolment by high school seniors who were eligible for student aid. From the original study, we use a graphical causal model to motivate the quantitative and qualitative modelling assumptions. Using a similar difference-in-difference approach based on propensity score matching, we estimate a smaller average treatment effect than the original study. The smaller estimated effect arguably stems from the graphical causal model’s delineation of the original model specification.
Journal: Applied Economics
Pages: 3986-4000
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208856
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208856
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:33:p:3986-4000



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208859_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Željko Bogetić
Author-X-Name-First: Željko
Author-X-Name-Last: Bogetić
Author-Name: Dominik Naeher
Author-X-Name-First: Dominik
Author-X-Name-Last: Naeher
Title: The good, the bad, and the ugly: New evidence on alternative views of corruption
Abstract: 
 Different views of corruption are discussed in the literature, ranging from theories highlighting a positive role of corruption (to ‘grease the wheels’ of an economy) to negative (acting as ‘sand in the wheels’) or even destructive effects of corruption on economic outcomes. The empirical evidence in this context is mixed, with alternative theories being supported by different studies, typically relying on different data sources, time periods, and measures of corruption. In this paper, we assess several alternative views of corruption simultaneously in a single empirical framework. Specifically, we test six prominent hypotheses regarding the role of corruption for government revenues using a comprehensive country-level panel dataset covering 194 countries in the period 1996–2019. Our results help to shed light on the factors that are empirically important in explaining the link between corruption and government revenues, including the role of governance, autocracy, fragile states, and natural resources.
Journal: Applied Economics
Pages: 4019-4032
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208859
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208859
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:33:p:4019-4032



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2208853_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yongyi Zhu
Author-X-Name-First: Yongyi
Author-X-Name-Last: Zhu
Author-Name: Di Yu
Author-X-Name-First: Di
Author-X-Name-Last: Yu
Title: Can government digitalization promote firm productivity? Evidence from Chinese listed firms
Abstract: 
 In the digital era of governance, few studies have analysed the influence of digital government on micro economies. To fill this gap, we explore the nexus between digital government and firm total factor productivity (TFP), and uncover the potential transmission channels behind this connection by focusing on Chinese listed firms from 2010 to 2017 and utilizing panel regression with firm-, year-, and province-fixed effects. Our findings confirm that digital government has constructive effects on firm TFP. Furthermore, empirical results suggest that this favourable impact can be transmitted through three channels of firm transaction costs and innovation, digital infrastructure construction, and government-market relationships. Further analysis reveals that the beneficial effect of digital government on firms is more significant in provinces with low fiscal transparency and complex topography, indicating that digital government compensates for the disadvantages of low fiscal transparency and inconvenience of steep terrain. Based on these conclusions, we provide suggestions for government digitalization to improve the performance of government-microeconomic complementation.
Journal: Applied Economics
Pages: 3939-3952
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208853
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208853
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:33:p:3939-3952

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2209311_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Carlos Alba
Author-X-Name-First: Carlos
Author-X-Name-Last: Alba
Author-Name: Gabriel Cuadra
Author-X-Name-First: Gabriel
Author-X-Name-Last: Cuadra
Author-Name: Raul Ibarra
Author-X-Name-First: Raul
Author-X-Name-Last: Ibarra
Title: The effects of central bank extraordinary measures on financial conditions: Evidence from Mexico
Abstract: 
 This paper analyses the effects of the extraordinary measures implemented by the Central Bank of Mexico during the COVID-19 pandemic on financial conditions. For this purpose, we estimate a factor-augmented vector autoregressive model for the period 2001–2021. Based on this model, we construct a Financial Conditions Index, estimate the response of this indicator and its components from a shock to the outstanding amount of these measures, and conduct a counterfactual exercise to further analyse the effect of the aforementioned measures. The main results indicate that these extraordinary measures seem to have contributed to improve financial conditions. In particular, we find that if these measures had not been implemented, the sovereign risk premium, the 10-year government bond yield, the slope of the yield curve, and the long- and short-term yield spreads between Mexico and the US would have been higher by around 56, 31, 27, 37, and 49 basis points in December 2020, respectively. At the same time, the Mexican peso/US dollar exchange rate and its volatility would have been higher by 5 and 2 percentage points, respectively. In turn, the Mexican stock market index would have been lower by 10 percentage points.
Journal: Applied Economics
Pages: 4064-4085
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2209311
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2209311
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:34:p:4064-4085



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210815_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Lara Agnoli
Author-X-Name-First: Lara
Author-X-Name-Last: Agnoli
Author-Name: J. François Outreville
Author-X-Name-First: J. François
Author-X-Name-Last: Outreville
Title: The role of behavioural antecedents in driving wine consumption in Taiwan restaurants
Abstract: 
 Taiwan is becoming increasingly important in the international wine scene, with restaurants still not representing pivotal distribution channels for wine. This study applied the Theory of Planned Behaviour (TPB) to understand the role of attitudes, subjective norms and perceived behavioural control as drivers or barriers in consuming wine in Taiwan restaurants. A survey by questionnaire was developed, involving 310 respondents from Taiwan. Structural Equation Models were applied to analyse data, test the validity of TPB and compare TPB with the Theory of Reasoned Action (TRA), hypothesizing no influence of perceived behavioural control on wine consumption in restaurants. Results highlight that TPB better predicts wine consumption in restaurants than TRA. Further, they highlight that people are more concerned about the opinion of others than their own attitude towards the product and the perceived control over the behaviour is the most important driver for the intention to consume wine in a restaurant, mainly linked to cultural reasons.
Journal: Applied Economics
Pages: 4086-4099
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210815
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210815
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:34:p:4086-4099



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210817_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sha Wu
Author-X-Name-First: Sha
Author-X-Name-Last: Wu
Author-Name: Mengfei Wan
Author-X-Name-First: Mengfei
Author-X-Name-Last: Wan
Title: Does Confucian culture reduce corporate default risk? Evidence from China
Abstract: 
 Confucianism is the cornerstone of traditional Chinese culture, and it has a significant impact on corporate behaviour. This paper investigates the relationship between Confucian culture and default risk. Using a sample of Chinese listed companies that covers the period between 2010 and 2020, we find robust evidence that Confucian culture is negatively associated with the probability of default. The effect operates through improvements in reputation and resource acquisition. It is more pronounced at firms that face severe financing constraints, at firms that are located in regions with high marketization, and at firms that are subject to weaker external supervision. Additional analyses show that Confucian culture improves corporate social responsibility and the quality of internal control, reduces earnings management and corporate risk-taking, and, ultimately, decreases the overall value of the firm. On the whole, our findings provide evidence of the role of cultural factors in filling institutional voids.
Journal: Applied Economics
Pages: 4114-4127
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210817
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210817
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:34:p:4114-4127



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210818_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: William Miles
Author-X-Name-First: William
Author-X-Name-Last: Miles
Author-Name: Samuel Moon Jung
Author-X-Name-First: Samuel Moon
Author-X-Name-Last: Jung
Author-Name: Chu-Ping Chen Vijverberg
Author-X-Name-First: Chu-Ping Chen
Author-X-Name-Last: Vijverberg
Title: The home price–income relationship for US states
Abstract: 
 There are conflicting theories on whether house prices and income should share a long-run relationship. Empirical work on the topic has yielded mixed results. Most previous studies have investigated whether the house price/income ratio is stationary (short memory) or non-stationary (has a unit root) but have not allowed for the intermediate possibility of long memory or fractional integration. We estimate fractional integration for the house price/income ratio for US states. We find most states exhibit long memory in their ratios. The states with the most long memory tend to be in the high-priced east coast and California. Southern and great plains states, in contrast, tend to exhibit the least persistence in the house price/income metric. In some housing markets – some east coast states, California, Arizona, Florida, and Nevada, home costs can become less and less affordable for local residents, with no tendency to reverse this unaffordability within a reasonable time horizon for potential buyers. In addition to the univariate estimates, multivariate fractional cointegration tests are implemented, and the results support the findings of non-affordability hypothesis.
Journal: Applied Economics
Pages: 4128-4139
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210818
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210818
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:34:p:4128-4139



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210816_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: José E. Boscá
Author-X-Name-First: José E.
Author-X-Name-Last: Boscá
Author-Name: Jose Cano-Leiva
Author-X-Name-First: Jose
Author-X-Name-Last: Cano-Leiva
Author-Name: Javier Ferri
Author-X-Name-First: Javier
Author-X-Name-Last: Ferri
Title: COVID-19 vaccination campaigns and health outcomes in Spain during 2021
Abstract: 
 We evaluate the effects of vaccines in the evolution of the epidemic in Spain during 2021. To this end, we estimate the effect of vaccination in terms of reducing infections, hospitalizations, ICU admissions, and deaths. We also compare the health impact of COVID-19 with that caused by recent influenza seasons, in a scenario where all the population had been vaccinated. The positive impact of vaccination on health indicators has been extraordinary. The non-availability of vaccines would have increased COVID-19 deaths by 571% compared to observed deaths. Moreover, the relative benefit of vaccination increases with the severity of the indicator: greater for deaths and ICU admissions, less for infections and hospitalizations. Under the assumption that the entire population had been vaccinated with the COVID-19 vaccine from the first week of April, the impact of the disease in terms of hospitalizations and deaths during 2021 would have been above a low activity flu season, but in line with a moderate/high activity flu season.
Journal: Applied Economics
Pages: 4100-4113
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210816
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210816
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:34:p:4100-4113



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2209310_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ying Wu
Author-X-Name-First: Ying
Author-X-Name-Last: Wu
Author-Name: Li Deng
Author-X-Name-First: Li
Author-X-Name-Last: Deng
Author-Name: Wen Huang
Author-X-Name-First: Wen
Author-X-Name-Last: Huang
Title: Major government-background customers and corporate green innovation
Abstract: 
 Using a sample of 1,595 Chinese listed firms from 2009 to 2019 and the Ordinary Least Squares method, we find that major government-background consumers have a positive effect on corporate green innovation. This finding is robust to a battery of tests. Mechanism tests suggest that major government-background consumers promote corporate green innovation output by alleviating financial constraints rather than by providing information feedback. Further analysis shows that major government-background consumers improve green innovation efficiency and are conducive to green invention innovation and green utility innovation. Finally, we find that stronger intellectual property protection strengthens the association between major government-background consumers and corporate green innovation. Our study suggests that the identification of larger consumers plays an important role in green innovation.
Journal: Applied Economics
Pages: 4049-4063
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2209310
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2209310
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:34:p:4049-4063



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210819_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ryan Garvey
Author-X-Name-First: Ryan
Author-X-Name-Last: Garvey
Author-Name: Jingbin He
Author-X-Name-First: Jingbin
Author-X-Name-Last: He
Author-Name: Fei Wu
Author-X-Name-First: Fei
Author-X-Name-Last: Wu
Title: Retail broker trading restrictions and market liquidity: an examination of GameStop
Abstract: 
 We examine changes in market liquidity when several popular U.S. retail brokers restrict client trading in GameStop stock over a six-day period in early 2021 due to higher clearinghouse deposit requirements. When retail investor participation in a high-attentionstock becomes restricted, trading activity declines and trading venue shifts occur – there is less trading in dark markets and more fragmented trading across U.S. stock exchanges. We also find that when a stock order flow mix becomes comprised of fewer retail investors and a higher concentration of institutional investors, the quoted bid-ask spread widens, and trading cost measures rise significantly.
Journal: Applied Economics
Pages: 4140-4153
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210819
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210819
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:34:p:4140-4153

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210824_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tetsuji Tanaka
Author-X-Name-First: Tetsuji
Author-X-Name-Last: Tanaka
Author-Name: Jin Guo
Author-X-Name-First: Jin
Author-X-Name-Last: Guo
Title: Is agricultural self-sufficiency effective to protect local markets from global markets? Empirical evidence from the beef sector in Japan
Abstract: 
 Although for decades, the Ministry of Agriculture, Forestry, and Fishery of Japan has formed agricultural policies based on food self-sufficiency as a vital factor in securing the domestic food supply, the impacts of agricultural self-sufficiency on the relationship between international and domestic markets are not well understood. Most previous literature on agricultural price transmissions applies conventional error correction and vector autoregression models. However, we employ the state-of-the-art technique, namely the time-varying parameter vector autoregression (TVP-VAR) connectedness model, as well as the dynamic conditional correlations based on the asymmetric Baba – Engle–Kraft – Kroner method to investigate the effectiveness of beef self-sufficiency and its inventory in stabilizing local beef prices in Japan. Our primary results indicate that the global beef price is the net transmitter of shocks, while the home-grown beef price in Japan is the net receiver of shocks. Furthermore, we find that high self-sufficiency in beef does not significantly protect local beef markets from global beef markets, but the imported beef inventory effectively alleviates the wholesale price volatility of imported beef. One policy implication is that the government should not take protectionist policies to enhance beef self-sufficiency, and import beef stocks could be accumulated to stabilize imported beef markets.
Journal: Applied Economics
Pages: 4236-4250
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210824
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210824
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:35:p:4236-4250



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zheng Li
Author-X-Name-First: Zheng
Author-X-Name-Last: Li
Author-Name: Jingjing Zeng
Author-X-Name-First: Jingjing
Author-X-Name-Last: Zeng
Title: Intra- and inter-individual risk attitude heterogeneity and the impact on road travel: evidence from a dynamic procedural model
Abstract: 
 This paper develops a dynamic procedural model to understand the day-to-day evolution of road traffic and risky mode choice behaviour. We embed a modified Bureau of Public Roads function and a queueing model into a dynamic traffic flow model to estimate information on travel time and in-vehicle crowding. Then, the estimated information is fed into a risky mode choice model, with the joint consideration of intra- and inter-individual risk attitude heterogeneity. In order to reflect what may be happening in the real market, we establish a close loop with individuals’ mode choice behaviours shaped by their travel experiences and historical information, the induced impact on traffic flow, and more importantly, the feedback and interplay between them. Our model delivers realistic and robust results, in which risk attitudes play the most prominent role.
Journal: Applied Economics
Pages: 4177-4193
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210821
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210821
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:35:p:4177-4193



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210825_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Daniel Lo
Author-X-Name-First: Daniel
Author-X-Name-Last: Lo
Author-Name: Michael James McCord
Author-X-Name-First: Michael James
Author-X-Name-Last: McCord
Author-Name: Graham Squires
Author-X-Name-First: Graham
Author-X-Name-Last: Squires
Title: Regional spillover of housing (un)affordability: an empirical study on the residential housing markets for first-time buyers in the U.K
Abstract: 
 This study examines the lead–lag relationships between the levels of housing affordability of different regions of the U.K. By utilizing government data, a number of housing affordability indicators are constructed to explore whether spatial diffusion exists between different regional submarkets of first-time homebuyers over the period of 2000 – 2021. The results reveal that during periods of economic expansion, housing unaffordability tended to diffuse from regions of slower economic growth to regions of higher economic development. It is further evident that in the aftermath of the GFC, the London housing market Granger-caused other regional markets in terms of housing (un)affordability. Lastly, the U.K’.s decision to leave the EU in 2016 seems to have led to more divergence between the submarket regions, which in a Granger causal sense, have become less causally correlated in terms of pricing. We conjecture that the causal interactions between the different regional housing submarkets exist with the lead–lag relationships governed primarily by their underlying macroeconomic fundamentals.
Journal: Applied Economics
Pages: 4251-4268
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210825
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210825
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:35:p:4251-4268



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210820_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jiqin Ren
Author-X-Name-First: Jiqin
Author-X-Name-Last: Ren
Author-Name: Yuanxuan Guo
Author-X-Name-First: Yuanxuan
Author-X-Name-Last: Guo
Author-Name: Jingjing Li
Author-X-Name-First: Jingjing
Author-X-Name-Last: Li
Author-Name: Jingjing Li
Author-X-Name-First: Jingjing
Author-X-Name-Last: Li
Title: Can internet concern about COVID-19 help predict stock markets: new evidence from high-concern and low-concern periods
Abstract: 
 The unprecedented outbreak of Corona Virus Disease 2019 (COVID-19) has resulted in extreme volatility in stock markets. This study mainly examines the predictive ability of the Internet concern about COVID-19 on stock index returns, based on the framework of GARCH type models. Instead of using the whole sample period, we divide the Internet concern about COVID-19 into high-concern and low-concern periods by breakpoint test method and then examine its predictive ability for stock returns in different periods, respectively. Using stock indexes of 10 countries and abnormal Google search volume of ‘coronavirus’ as study samples, the results reveal that (1) the Internet concern about COVID-19 has a negative impact on the stock index returns in the whole and high-concern periods, while its influence in the low-concern period is mixed; (2) the Internet concern about COVID-19 improves the prediction accuracy of stock index returns in the high-concern period, while seems to lose its powerful predictive ability in the whole and low-concern periods.
Journal: Applied Economics
Pages: 4155-4176
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210820
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210820
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:35:p:4155-4176



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2317266_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Bo Zha
Author-X-Name-First: Bo
Author-X-Name-Last: Zha
Title: Impact of Weibo sentiment and R&D innovation as signalling mechanisms on venture corporate financing
Abstract: 
 Weibo sentiment and R&D innovation are important signals that influence the financing processes of venture corporations. We collect relevant data between 1 January 2011, and 31 December 2020, to analyse the effect of the signalling mechanism of Weibo sentiment and R&D innovation on venture corporate financing. The conclusions are as follows. The positive effects of Weibo sentiment on venture valuation and investment success are weaker than the effects of R&D innovation, and the positive effects of Weibo sentiment and R&D innovation on venture valuations are stronger for young than older venture firms. The positive effects of Weibo sentiment and R&D innovation on venture valuations are stronger for less experienced ventures than for more experienced ventures. These conclusions show that the two signals of Weibo sentiment and R&D innovation have different strengths in terms of venture valuation and investment success, with the effect of the Weibo sentiment signal being relatively less strong. Moreover, venture corporate age and venture corporate experience play important negative moderating roles in the relationship between the two signals and venture valuation.
Journal: Applied Economics
Pages: 4269-4287
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2024.2317266
File-URL: http://hdl.handle.net/10.1080/00036846.2024.2317266
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:35:p:4269-4287



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210823_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Peng Nie
Author-X-Name-First: Peng
Author-X-Name-Last: Nie
Author-Name: Qiaoge Li
Author-X-Name-First: Qiaoge
Author-X-Name-Last: Li
Title: Does energy poverty increase health care expenditures in China?
Abstract: 
 Using the 2012–2018 waves of the China Family Panel Studies, we investigate the impact of energy poverty (EP) on health care expenditures among Chinese adults aged 18+. Employing a methodology combining a random effects two-part model and instrumental variable estimations, we show that EP leads to higher levels of total (305 yuan/year), out-of-pocket (199 yuan/year), inpatient (230 yuan/year) and other (113 yuan/year) health care expenditures, with more pronounced impacts among females and those living in urban areas and Eastern China. These results are robust not only to alternative EP and health care expenditure measures but also to a series of estimation approaches that control for endogeneity. An additional structural equation modelling analysis of the underlying pathways further reveals that this EP-health care expenditure relationship is mediated by individual self-reported health as well as expenditures on food and other daily necessities. Combating EP is an effective way to improve people’s health and reduce the burden on health care expenditures. Policymakers should also pay more attention to vulnerable groups such as women.
Journal: Applied Economics
Pages: 4209-4235
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210823
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210823
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:35:p:4209-4235



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210822_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Soumaya Yaakoubi
Author-X-Name-First: Soumaya
Author-X-Name-Last: Yaakoubi
Title: Investor sentiment and skewness risk premium
Abstract: 
 This paper provides new evidence on the pricing of market skewness risk by incorporating investor sentiment in the relation between sensitivity to innovations in implied market skewness and expected stock returns. Using both univariate and multivariate specifications, we conduct an extensive series of asset pricing tests on the cross-section of stocks during high and low sentiment periods separately. We find that market skewness risk carries a negative premium that cannot be explained away by known risk factors when sentiment is low. In contrast, the results are not conducive to a risk explanation when sentiment is high.
Journal: Applied Economics
Pages: 4194-4208
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210822
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210822
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:35:p:4194-4208

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210827_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jisheng Yang
Author-X-Name-First: Jisheng
Author-X-Name-Last: Yang
Author-Name: Yingxin Kou
Author-X-Name-First: Yingxin
Author-X-Name-Last: Kou
Title: The effect of multiple shocks on domestic production network: evidence from China’s manufacturing industries
Abstract: 
 The domestic production network in China has been affected by multiple shocks in recent years, and this study reveals the dynamic changes of the shocks’ effects. Based on a domestic trade model with industry-level unobserved factors, we examine the trends of multiple shocks to the domestic market of China’s manufacturing industries and find that the domestic market has been bolstered by upward shocks until 2010, while has been depressed by downward shocks thereafter. Furthermore, based on multi-regional input–output analysis, we evaluate the impacts of domestic market shocks on industries’ value-added in the domestic value chain (DVC). We find that from 2004 to 2012, the domestic market shocks significantly promoted industries to participate in DVC embodied in the global value chain (DVC1), while after 2012 the shocks began to promote industries to participate in DVC completely based on endogenous capabilities (DVC2). However, the DVC2 position has not been upgraded by domestic market shocks. From another perspective, we investigate the impacts of domestic market shocks on the industrial linkage structure and find that the impact on industries’ centrality turns from negative to positive after the 2008 global financial crisis.
Journal: Applied Economics
Pages: 4315-4328
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210827
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210827
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:36:p:4315-4328



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210828_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chen Li
Author-X-Name-First: Chen
Author-X-Name-Last: Li
Author-Name: Yuminzi Fang
Author-X-Name-First: Yuminzi
Author-X-Name-Last: Fang
Author-Name: Ce Song
Author-X-Name-First: Ce
Author-X-Name-Last: Song
Title: Corporate green innovation behaviour and investment efficiency: evidence from China
Abstract: 
 Corporate green innovation has aroused attention from academics and practitioners in recent years, but the green innovation-investment decision nexus is less explored. Using Chinese-listed firms in the Shanghai and Shenzhen Stock Exchange from 2007 to 2019 as a sample, our research finds that green innovation significantly improves investment efficiency by mitigating over-investment. This finding still holds after addressing endogeneity tests and conducting additional robustness checks. Channel analysis shows that research and development expenditure is an underlying mechanism. Further examinations reveal that green innovation’s influence is more significant in non-politically connected, low-financing-constrained firms and firms with many independent directors. Our paper offers new insights into the influence at firm-level of concrete corporate social responsibility strategies, and the green innovation-investment decision nexus, and presents important policy implications for sustainable development.
Journal: Applied Economics
Pages: 4329-4343
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210828
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210828
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:36:p:4329-4343



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211337_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yongchang Shen
Author-X-Name-First: Yongchang
Author-X-Name-Last: Shen
Author-Name: Yunyun Fu
Author-X-Name-First: Yunyun
Author-X-Name-Last: Fu
Author-Name: Malin Song
Author-X-Name-First: Malin
Author-X-Name-Last: Song
Title: Digital finance promotes sustainable total factor eco-efficiency: evidence from China
Abstract: 
 A super-efficient SBM model was constructed using Chinese provincial panel data from 2011 to 2018 to explore the impact of digital finance on sustainable total factor eco-efficiency (STFEcE) and its mechanisms of action. The results show that digital finance can promote the improvement of STFEcE, and this promotion is heterogeneous. Western regions with more backward financial development, ecologically inefficient regions, and financially weakly regulated regions have more significant eco-efficiency improvements from digital financial services. Digital finance influences STFEcE by expanding the scale of green credit and enhancing the level of green and digital technology innovation. Therefore, the government should support the efficient integration of digital technology and financial services in macro policies, accelerate the infrastructure construction of digital finance, eliminate the digital divide, and create a favourable financial environment for improving STFEcE.
Journal: Applied Economics
Pages: 4389-4403
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211337
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211337
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:36:p:4389-4403



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210826_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jie Gao
Author-X-Name-First: Jie
Author-X-Name-Last: Gao
Author-Name: Feng Huang
Author-X-Name-First: Feng
Author-X-Name-Last: Huang
Title: Major-customer geographic proximity and supplier trade credit: empirical evidence from China
Abstract: 
 Customer geographical proximity is a factor influencing supplier firms’ trade-offs when granting customers trade credits. However, the extant literature offers scant empirical evidence on the effect of customer location on supplier firm’s trade credit. This paper investigates the impact of major customers’ geographical proximity on a supplier firm’s trade credit. Using a sample of 5,587 observations of publicly listed Chinese firms between 2007 and 2017, we document a positive relationship between major customers’ geographical distance and the supplier firm’s trade credit. Moreover, the main results remain robust when changing samples and considering endogeneity problems. This paper also tests two potential channels and identifies the exploring market channel that exists in our sample. Furthermore, the main relation is more pronounced in supplier firms with low financial risk, operating in areas of high marketization, high product development, strong legal environments, and low economic policy uncertainty. This paper extends the existing literature on the economic consequences of customer characteristics on supplier firms to include customer geographic proximity. In addition, this paper sheds light on supply chain risk management.
Journal: Applied Economics
Pages: 4289-4314
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210826
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210826
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:36:p:4289-4314



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211336_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: James Fell
Author-X-Name-First: James
Author-X-Name-Last: Fell
Author-Name: Andrew Duver
Author-X-Name-First: Andrew
Author-X-Name-Last: Duver
Title: Non-tariff measures: a methodology for the quantification of bilateral trade effects of policy measures at a product level
Abstract: 
 Trade negotiators are confronted with the policy challenge of determining which non-tariff measures (NTMs) and products to focus on, particularly in the agriculture and food sectors, which face a prevalence of NTMs. Quantitative advice on the trade effects of different measures can inform one aspect of a negotiator’s multifaceted prioritization process. Despite well-established methods for the quantification of trade policies at an aggregate bilateral trade level, the product-level literature suffers from a general misapplication of economic theory, leaving much of it divergent from microeconomic foundations. Furthermore, the literature generally makes compromises that inhibit the ability to draw useful insight on importer-specific policy variables like NTMs. In light of this gap in the literature, we propose an approach that leads to a proof-of-concept quantification methodology for bilateral product-level analysis, fulfiling a need in the body politic to defensibly identify trade effects of NTMs at a bilateral and product level. International grains markets are used as an example to demonstrate the proof-of-concept.
Journal: Applied Economics
Pages: 4374-4388
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211336
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211336
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:36:p:4374-4388



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210830_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: The role of COVID-19 in herding: evidence from the Croatian stock market
Abstract: 
 This paper explores the role of the COVID-19 pandemic on the herding behaviour across market participants in the Croatian market. The analysis uses daily prices of the Croatian stock index, spanning the period January 2016 to December 2022. The hypothesis of the herding behaviour is tested through the quantile regression approach. The findings document no evidence of herding prior to the pandemic crisis. In contrast, herding is discovered during the COVID-19 period. The paper provides policymakers and investors with valuable information to draw significant measures in their investment portfolio management during crises and pandemics.
Journal: Applied Economics
Pages: 4363-4373
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210830
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210830
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:36:p:4363-4373



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2210829_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Axelle Heyert
Author-X-Name-First: Axelle
Author-X-Name-Last: Heyert
Author-Name: Laurent Weill
Author-X-Name-First: Laurent
Author-X-Name-Last: Weill
Title: Never forget, never forgive: the impact of inflation on trust in banks
Abstract: 
 This paper investigates how inflation influences an individual’s trust in banks. Using individual data covering 72 countries, we find that inflation, both recent and experienced throughout life, exerts a detrimental influence on trust in banks. Even if recent inflation has a stronger impact, these results support the view that inflation has both short- and long-term effects on trust in banks. Additional estimations show that individual characteristics like education and access to information can affect the negative impact of inflation on trust in banks. Overall, our results indicate that fighting against inflation prevents a lasting reduction of trust in banks.
Journal: Applied Economics
Pages: 4344-4362
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210829
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210829
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:36:p:4344-4362

Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2212964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Noorasiah Sulaiman
Author-X-Name-First: Noorasiah
Author-X-Name-Last: Sulaiman
Author-Name: Nurul Fathnin Muhamad Bustaman
Author-X-Name-First: Nurul Fathnin
Author-X-Name-Last: Muhamad Bustaman
Author-Name: Chor Foon Tang
Author-X-Name-First: Chor Foon
Author-X-Name-Last: Tang
Title: Economic growth and female labour force participation in an ageing society: evidence from Southeast Asia
Abstract: 
 This study examines the impact of female labour participation and life expectancy on economic growth in Southeast Asia economies using non-stationary panel data techniques. The study utilizes balanced panel data spanning from 1992 to 2020, encompassing ten countries in Southeast Asia. The results reveal that economic growth, female labour participation, and other factors are cointegrated. The findings indicate that trade openness has a negative impact on economic growth. However, we find that female labour participation, female longevity, female education, domestic investment, and foreign direct investment have a positive long-term effect on economic growth. Our study also highlights that the effect of female labour participation on growth varies depending on female longevity. We find that female labour participation positively impacts economic growth but changes negatively when countries exhibit a high level of female life expectancy.
Journal: Applied Economics
Pages: 4481-4491
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2212964
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2212964
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4481-4491



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211342_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yan Li
Author-X-Name-First: Yan
Author-X-Name-Last: Li
Author-Name: Chao Liang
Author-X-Name-First: Chao
Author-X-Name-Last: Liang
Author-Name: Toan Luu Duc Huynh
Author-X-Name-First: Toan Luu Duc
Author-X-Name-Last: Huynh
Title: Combination forecast based on financial stress categories for global equity market volatility: the evidence during the COVID-19 and the global financial crisis periods
Abstract: 
 The 2008 global financial crisis and the COVID-19 pandemic both decrease economic growth and lead to high uncertainty in global stock markets, and financial stress information is closely linked to financial crises. To improve the predictability of the realized volatility of the global equity indices during crises, we examine the predictive role of the Global Financial Stress Index (GFSI) and its categories. We find that the combination predictions based on GFSI’s five incorporated categories and three region-based categories outperform the predictions based on the raw GFSI for most indices. Specifically, the DMSPE combination model with a low discount factor has accurate forecasts for 5- and 22-day-ahead realized volatility, and it also performs better than the equal-weighted and the trimmed mean combination methods. In this study, we present a comprehensive analysis of the predictive role of financial stress information in stock market volatility during crises, and the empirical evidence provides a positive case against the ‘forecast combination puzzle’. Our findings are very instructive for policymakers and investors to make their own short-term and long-term plans in crisis.
Journal: Applied Economics
Pages: 4435-4470
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211342
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211342
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4435-4470



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2276088_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yan Wu
Author-X-Name-First: Yan
Author-X-Name-Last: Wu
Author-Name: Xueyu Wang
Author-X-Name-First: Xueyu
Author-X-Name-Last: Wang
Author-Name: Cong Hu
Author-X-Name-First: Cong
Author-X-Name-Last: Hu
Title: The impact of China’s financing to Africa on bilateral trade intensity under the Belt and Road Initiative
Abstract: 
 Based on panel data from 2000 to 2021 covering African 52 countries under the Belt and Road Initiative (BRI), and utilizing a system generalized method of moments with instrumental variables, the study finds that China’s financing has played a positive role in both export and import intensities of African countries with China. However, the impacts of different financing types on trade intensities vary by different country groups and periods. First, Chinese outward foreign direct investment (OFDI) has a much bigger impact on both export intensity and import intensity, and aid has a much bigger impact on export intensity in resource-rich African countries than other countries. Second, Chinese OFDI has a much bigger impact on export intensity and aid has a much bigger impact on both export and import intensities in low-income African countries than other countries. Third, the regression results from different periods indicate that Chinese financing has enhanced the bidirectional trade relations between China and Africa since BRI launch. The study is conducive to the exploration of multinational corporations and foreign aid’s role in trade relations and will help African countries use Chinese capital to promote bilateral cooperation and get rid of poverty.
Journal: Applied Economics
Pages: 4507-4527
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2276088
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2276088
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4507-4527



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211338_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jiyuan Wang
Author-X-Name-First: Jiyuan
Author-X-Name-Last: Wang
Author-Name: Meilian Zhang
Author-X-Name-First: Meilian
Author-X-Name-Last: Zhang
Author-Name: Yi Zhang
Author-X-Name-First: Yi
Author-X-Name-Last: Zhang
Title: The Effect of informal caregiving on caregivers’ healthcare utilization in China
Abstract: 
 A fast-ageing population implies an upsurge in demand for caregiving. We examine the causal effect of informal caregiving on caregivers’ realized and forgone healthcare utilization based on data from China. Accounting for the potential endogeneity in caregiving, we find that caregivers not only use more outpatient care and self-treatment, but are also more likely to forgo necessary inpatient care. Caregiving also increases the out-of-pocket expenditures of all types of healthcare. Further mechanism analysis shows that caregiving worsens caregivers’ health and takes up time and economic resources for healthcare utilization, which causes the coexistence of increased realized and forgone healthcare use. Heterogeneity analysis reveals that those with tighter budgets and higher marginal costs for healthcare (e.g. rural or less educated caregivers) tend to bear larger increases in caregiving-driven health costs. Our results shed light on the overlooked benefit of long-term care policies if accounting for the spillover effects of informal care provision on caregivers’ healthcare use, particularly for disadvantaged groups.
Journal: Applied Economics
Pages: 4405-4419
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211338
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4405-4419



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2212965_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chunmei Li
Author-X-Name-First: Chunmei
Author-X-Name-Last: Li
Author-Name: Jingya Wu
Author-X-Name-First: Jingya
Author-X-Name-Last: Wu
Author-Name: Chinyakwa Amos
Author-X-Name-First: Chinyakwa
Author-X-Name-Last: Amos
Author-Name: Yingzhe Su
Author-X-Name-First: Yingzhe
Author-X-Name-Last: Su
Title: Interregional industrial transfer, industrial correlation spillover, and productivity: evidence from China’s textile industry
Abstract: 
 This paper studies the knowledge spillover effect through industrial correlation in the process of interregional textile industry transfer and its effects on the TFP of China’s textile industry. The paper calculates the industrial similarity coefficients of subdivided industries with the textile industry and identifies the related industries of China’s textile industry by using the data of China’s input-output table and extension tables from 2002 to 2017. Then, the paper defines the industrial correlation spillover as the weighted sum of the indirect R&D investment of one industry from its related industries and constructs a quantitative method to qualify the industrial correlation spillover. Furthermore, the paper makes two empirical analyses on the existence of industrial correlation spillover in the interregional industrial transfer and its effects on productivity using the panel data of two-digit subdivided industries in 30 provinces. The results show that the correlation spillover effect does exist and promotes the interregional textile industry transfer from the eastern coastal region to the central and the northern-coastal regions; the correlation spillover from the related tertiary industries in industrial transfer promotes the TFP of China’s textile industry, but the correlation spillover from the related secondary industries impedes the TFP of the textile industry.
Journal: Applied Economics
Pages: 4492-4506
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2212965
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2212965
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4492-4506



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211341_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Giuseppe Celi
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Celi
Author-Name: Edgardo Sica
Author-X-Name-First: Edgardo
Author-X-Name-Last: Sica
Title: Migration, exports and capital: what is the impact of ghettos on local firms?
Abstract: 
 This paper investigates the effects of migration on the export and production techniques of agri-industrial firms in the proximity of clusters of migrants. The analysis draws on an original dataset built through interviews conducted with agri-food firms in the Foggia province (southern Italy). Over the past two decades, this area has experienced a strong influx of migrants, who have concentrated in ghettos. The results do not support a pro-trade effect, but provide evidence for both a substitution and a complementarity effect of migrants on capital endowment, depending on the type of machinery used by the firm.
Journal: Applied Economics
Pages: 4420-4434
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211341
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211341
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4420-4434



Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211343_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: James W. Saunoris
Author-X-Name-First: James W.
Author-X-Name-Last: Saunoris
Author-Name: James E. Payne
Author-X-Name-First: James E.
Author-X-Name-Last: Payne
Title: Economic freedom determinants across U.S. states: A Bayesian model averaging approach
Abstract: 
 This study examines the potential determinants of state-level economic freedom for a panel of the 50 U.S. states from 1994 to 2020. To address model uncertainty in the identification of robust determinants, we use Bayesian model averaging to test the robustness (to the inclusion and exclusion of other determinants) of 17 potential determinants that have been recognized in the extant literature. The results show robustness with respect to the positive impact of the level of per capita real income and its growth, fiscal decentralization and neighbouring state economic freedom, whereas per capita fossil fuel production, population density, unemployment rate and democratic governorships have a negative impact. The remaining determinants were not robustly associated with economic freedom.
Journal: Applied Economics
Pages: 4471-4480
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211343
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211343
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4471-4480